H. R. 930
One Hundred Fifth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twenty-seventh day of January, one thousand nine hundred and ninety-eight
An Act
To require Federal employees to use Federal travel charge cards for all payments
of expenses of official Government travel, to amend title 31, United States Code,
to establish requirements for prepayment audits of Federal agency transportation
expenses, to authorize reimbursement of Federal agency employees for taxes
incurred on travel or transportation reimbursements, and to authorize test
programs for the payment of Federal employee travel expenses and relocation
expenses.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Travel and Transportation Reform
Act of 1998’’.
SEC. 2. REQUIRING USE OF THE TRAVEL CHARGE CARD.
(a) IN GENERAL.—Under regulations issued by the Adminis-
trator of General Services after consultation with the Secretary
of the Treasury, the Administrator shall require that Federal
employees use the travel charge card established pursuant to the
United States Travel and Transportation Payment and Expense
Control System, or any Federal contractor-issued travel charge
card, for all payments of expenses of official Government travel.
The Administrator shall exempt any payment, person, type or class
of payments, or type or class of personnel from any requirement
established under the preceding sentence in any case in which—
(1) it is in the best interest of the United States to
do so;
(2) payment through a travel charge card is impractical
or imposes unreasonable burdens or costs on Federal employees
or Federal agencies; or
(3) the Secretary of Defense or the Secretary of Transpor-
tation (with respect to the Coast Guard) requests an exemption
with respect to the members of the uniformed services.
(b) AGENCY EXEMPTION.—The head of a Federal agency or
the designee of such head may exempt any payment, person, type
or class of payments, or type or class of agency personnel from
subsection (a) if the agency head or the designee determines the
exemption to be necessary in the interest of the agency. Not later
than 30 days after granting such an exemption, the head of such
agency or the designee shall notify the Administrator of General
Services in writing of such exemption stating the reasons for the
exemption.
(c) LIMITATION ON RESTRICTION ON DISCLOSURE.—
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(1) IN GENERAL.—Section 1113 of the Right to Financial
Privacy Act of 1978 (12 U.S.C. 3413) is amended by adding
at the end the following new subsection:
‘‘(q) Nothing in this title shall apply to the disclosure of any
financial record or information to a Government authority in
conjunction with a Federal contractor-issued travel charge card
issued for official Government travel.’’.
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) is effective as of October 1, 1983, and applies to any records
created pursuant to the United States Travel and Transpor-
tation Payment and Expense Control System or any Federal
contractor-issued travel charge card issued for official Govern-
ment travel.
(d) COLLECTION OF AMOUNTS OWED.—
(1) IN GENERAL.—Under regulations issued by the Adminis-
trator of General Services and upon written request of a Federal
contractor, the head of any Federal agency or a disbursing
official of the United States may, on behalf of the contractor,
collect by deduction from the amount of pay owed to an
employee of the agency any amount of funds the employee
owes to the contractor as a result of delinquencies not disputed
by the employee on a travel charge card issued for payment
of expenses incurred in connection with official Government
travel. The amount deducted from the pay owed to an employee
with respect to a pay period may not exceed 15 percent of
the disposable pay of the employee for that pay period, except
that a greater percentage may be deducted upon the written
consent of the employee.
(2) DUE
PROCESS
PROTECTIONS.—Collection under this
subsection shall be carried out in accordance with procedures
substantially equivalent to the procedures required under sec-
tion 3716(a) of title 31, United States Code.
(3) DEFINITIONS.—For the purpose of this subsection:
(A) AGENCY.—The term ‘‘agency’’ has the meaning that
term has under section 101 of title 31, United States Code.
(B) EMPLOYEE.—The term ‘‘employee’’ means an
individual employed in or under an agency, including a
member of any of the uniformed services. For purposes
of this subsection, a member of one of the uniformed serv-
ices is an employee of that uniformed service.
(C) MEMBER; UNIFORMED SERVICE.—Each of the terms
‘‘member’’ and ‘‘uniformed service’’ has the meaning that
term has in section 101 of title 37, United States Code.
(e) REGULATIONS.—Within 270 days after the date of the enact-
ment of this Act, the Administrator of General Services shall
promulgate regulations implementing this section, that—
(1) make the use of the travel charge card established
pursuant to the United States Travel and Transportation Sys-
tem and Expense Control System, or any Federal contractor-
issued travel charge card, mandatory for all payments of
expenses of official Government travel pursuant to this section;
(2) specify the procedures for effecting under subsection
(d) a deduction from pay owed to an employee, and ensure
that the due process protections provided to employees under
such procedures are no less than the protections provided to
employees pursuant to section 3716 of title 31, United States
Code;
H. R. 930—3
(3) provide that any deduction under subsection (d) from
pay owed to an employee may occur only after reimbursement
of the employee for the expenses of Government travel with
respect to which the deduction is made; and
(4) require agencies to promptly reimburse employees for
expenses charged on a travel charge card pursuant to this
section, and by no later than 30 days after the submission
of a claim for reimbursement.
(f ) REPORTS.—
(1) IN GENERAL.—The Administrator of General Services
shall submit 2 reports to the Congress on agency compliance
with this section and regulations that have been issued under
this section.
(2) TIMING.—The first report under this subsection shall
be submitted before the end of the 180-day period beginning
on the date of the enactment of this Act, and the second
report shall be submitted after that period and before the
end of the 540-day period beginning on that date of enactment.
(3) PREPARATION.—Each report shall be based on a sam-
pling survey of agencies that expended more than $5,000,000
during the previous fiscal year on travel and transportation
payments, including payments for employee relocation. The
head of an agency shall provide to the Administrator the nec-
essary information in a format prescribed by the Administrator
and approved by the Director of the Office of Management
and Budget.
(g) REIMBURSEMENT OF TRAVEL EXPENSES.—In accordance with
regulations prescribed by the Administrator of General Services,
the head of an agency shall ensure that the agency reimburses
an employee who submits a proper voucher for allowable travel
expenses in accordance with applicable travel regulations within
30 days after submission of the voucher. If an agency fails to
reimburse an employee who has submitted a proper voucher within
30 days after submission of the voucher, the agency shall pay
the employee a late payment fee as prescribed by the Administrator.
SEC. 3. PREPAYMENT AUDITS OF TRANSPORTATION EXPENSES.
(a) IN GENERAL.—(1) Section 3322 of title 31, United States
Code, is amended in subsection (c) by inserting after ‘‘classifications’’
the following: ‘‘if the Administrator of General Services has deter-
mined that verification by a prepayment audit conducted pursuant
to section 3726(a) of this title for a particular mode or modes
of transportation, or for an agency or subagency, will not adequately
protect the interests of the Government’’.
(2) Section 3528 of title 31, United States Code, is amended—
(A) in subsection (a) by striking ‘‘and’’ after the semicolon
at the end of paragraph (3), by striking the period at the
end of subsection (a)(4)(C) and inserting ‘‘; and’’, and by adding
at the end the following new paragraph:
‘‘(5) verifying transportation rates, freight classifications,
and other information provided on a Government bill of lading
or transportation request, unless the Administrator of General
Services has determined that verification by a prepayment
audit conducted pursuant to section 3726(a) of this title for
a particular mode or modes of transportation, or for an agency
or subagency, will not adequately protect the interests of the
Government.’’;
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(B) in subsection (c)(1), by inserting after ‘‘deductions’’ the
following: ‘‘and the Administrator of General Services has deter-
mined that verification by a prepayment audit conducted pursu-
ant to section 3726(a) of this title for a particular mode or
modes of transportation, or for an agency or subagency, will
not adequately protect the interests of the Government’’; and
(C) in subsection (c)(2), by inserting after ‘‘agreement’’ the
following: ‘‘and the Administrator of General Services has deter-
mined that verification by a prepayment audit conducted pursu-
ant to section 3726(a) of this title for a particular mode or
modes of transportation, or for an agency or subagency, will
not adequately protect the interests of the Government’’.
(3) Section 3726 of title 31, United States Code, is amended—
(A) by amending subsection (a) to read as follows:
‘‘(a)(1) Each agency that receives a bill from a carrier or freight
forwarder for transporting an individual or property for the United
States Government shall verify its correctness (to include transpor-
tation rates, freight classifications, or proper combinations thereof ),
using prepayment audit, prior to payment in accordance with the
requirements of this section and regulations prescribed by the
Administrator of General Services.
‘‘(2) The Administrator of General Services may exempt bills,
a particular mode or modes of transportation, or an agency or
subagency from a prepayment audit and verification and in lieu
thereof require a postpayment audit, based on cost effectiveness,
public interest, or other factors the Administrator considers appro-
priate.
‘‘(3) Expenses for prepayment audits shall be funded by the
agency’s appropriations used for the transportation services.
‘‘(4) The audit authority provided to agencies by this section
is subject to oversight by the Administrator.’’;
(B) by redesignating subsections (b), (c), (d), (e), (f ), and
(g) as subsections (d), (e), (f ), (g), (h), and (i), respectively;
(C) by inserting after subsection (a) the following new
subsections:
‘‘(b) The Administrator may conduct pre- or post-payment audits
of transportation bills of any Federal agency. The number and
types of bills audited shall be based on the Administrator’s judg-
ment.
‘‘(c)(1) The Administrator shall adjudicate transportation claims
which cannot be resolved by the agency procuring the transportation
services, or the carrier or freight-forwarder presenting the bill.
‘‘(2) A claim under this section shall be allowed only if it
is received by the Administrator not later than 3 years (excluding
time of war) after the later of the following dates:
‘‘(A) The date of accrual of the claim.
‘‘(B) The date payment for the transportation is made.
‘‘(C) The date a refund for an overpayment for the
transportation is made.
‘‘(D) The date a deduction under subsection (d) of this
section is made.’’;
(D) in subsection (f ), as so redesignated, by striking ‘‘sub-
section (c)’’ and inserting ‘‘subsection (e)’’, and by adding at
the end the following new sentence: ‘‘This reporting requirement
expires December 31, 1998.’’;
(E) in subsection (i)(1), as so redesignated, by striking
‘‘subsection (a)’’ and inserting ‘‘subsection (c)’’; and
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(F) by adding after subsection (i), as so redesignated, the
following new subsection:
‘‘( j) The Administrator of General Services may provide
transportation audit and related technical assistance services, on
a reimbursable basis, to any other agency. Such reimbursements
may be credited to the appropriate revolving fund or appropriation
from which the expenses were incurred.’’.
(b) EFFECTIVE DATE.—The amendments made by this section
shall become effective 18 months after the date of the enactment
of this Act.
SEC. 4. REIMBURSEMENT FOR TAXES ON MONEY RECEIVED FOR
TRAVEL EXPENSES.
(a) IN GENERAL.—Title 5, United States Code, is amended
by inserting after section 5706b the following new section:
‘‘§ 5706c. Reimbursement for taxes incurred on money
received for travel expenses
‘‘(a) Under regulations prescribed pursuant to section 5707
of this title, the head of an agency or department, or his or her
designee, may use appropriations or other funds available to the
agency for administrative expenses, for the reimbursement of Fed-
eral, State, and local income taxes incurred by an employee of
the agency or by an employee and such employee’s spouse (if filing
jointly), for any travel or transportation reimbursement made to
an employee for which reimbursement or an allowance is provided.
‘‘(b) Reimbursements under this section shall include an amount
equal to all income taxes for which the employee and spouse,
as the case may be, would be liable due to the reimbursement
for the taxes referred to in subsection (a). In addition, reimburse-
ments under this section shall include penalties and interest, for
the tax years 1993 and 1994 only, as a result of agencies failing
to withhold the appropriate amounts for tax liabilities of employees
affected by the change in the deductibility of travel expenses made
by Public Law 102–486.’’.
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 57 of title 5, United States Code, is amended
by inserting after the item relating to section 5706b the following
new item:
‘‘5706c. Reimbursement for taxes incurred on money received for travel expenses.’’.
(c) EFFECTIVE DATE.—This section shall be effective as of
January 1, 1993.
SEC. 5. AUTHORITY FOR TEST PROGRAMS.
(a) TRAVEL
EXPENSES
TEST
PROGRAMS.—Subchapter I of
chapter 57 of title 5, United States Code, is amended by adding
at the end the following new section:
‘‘§ 5710. Authority for travel expenses test programs
‘‘(a)(1) Notwithstanding any other provision of this subchapter,
under a test program which the Administrator of General Services
determines to be in the interest of the Government and approves,
an agency may pay through the proper disbursing official for a
period not to exceed 24 months any necessary travel expenses
in lieu of any payment otherwise authorized or required under
this subchapter. An agency shall include in any request to the
Administrator for approval of such a test program an analysis
H. R. 930—6
of the expected costs and benefits and a set of criteria for evaluating
the effectiveness of the program.
‘‘(2) Any test program conducted under this section shall be
designed to enhance cost savings or other efficiencies that accrue
to the Government.
‘‘(3) Nothing in this section is intended to limit the authority
of any agency to conduct test programs.
‘‘(b) The Administrator shall transmit a copy of any test
program approved by the Administrator under this section to the
appropriate committees of the Congress at least 30 days before
the effective date of the program.
‘‘(c) An agency authorized to conduct a test program under
subsection (a) shall provide to the Administrator and the appro-
priate committees of the Congress a report on the results of the
program no later than 3 months after completion of the program.
‘‘(d) No more than 10 test programs under this section may
be conducted simultaneously.
‘‘(e) The authority to conduct test programs under this section
shall expire 7 years after the date of the enactment of the Travel
and Transportation Reform Act of 1998.’’.
(b) RELOCATION EXPENSES TEST PROGRAMS.—Subchapter II of
chapter 57 of title 5, United States Code, is further amended
by adding at the end the following new section:
‘‘§ 5739. Authority for relocation expenses test programs
‘‘(a)(1) Notwithstanding any other provision of this subchapter,
under a test program which the Administrator of General Services
determines to be in the interest of the Government and approves,
an agency may pay through the proper disbursing official for a
period not to exceed 24 months any necessary relocation expenses
in lieu of any payment otherwise authorized or required under
this subchapter. An agency shall include in any request to the
Administrator for approval of such a test program an analysis
of the expected costs and benefits and a set of criteria for evaluating
the effectiveness of the program.
‘‘(2) Any test program conducted under this section shall be
designed to enhance cost savings or other efficiencies that accrue
to the Government.
‘‘(3) Nothing in this section is intended to limit the authority
of any agency to conduct test programs.
‘‘(b) The Administrator shall transmit a copy of any test
program approved by the Administrator under this section to the
appropriate committees of the Congress at least 30 days before
the effective date of the program.
‘‘(c) An agency authorized to conduct a test program under
subsection (a) shall provide to the Administrator and the appro-
priate committees of the Congress a report on the results of the
program no later than 3 months after completion of the program.
‘‘(d) No more than 10 test programs under this section may
be conducted simultaneously.
‘‘(e) The authority to conduct test programs under this section
shall expire 7 years after the date of the enactment of the Travel
and Transportation Reform Act of 1998.’’.
(c) CLERICAL AMENDMENTS.—The table of sections for chapter
57 of title 5, United States Code, is further amended by—
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(1) inserting after the item relating to section 5709 the
following new item:
‘‘5710. Authority for travel expenses test programs.’’;
and
(2) inserting after the item relating to section 5738 the
following new item:
‘‘5739. Authority for relocation expenses test programs.’’.
SEC. 6. DEFINITION OF UNITED STATES.
Chapter 57 of title 5, United States Code, is amended—
(1) in section 5721—
(A) in paragraph (4), by striking ‘‘and’’ following the
semicolon at the end;
(B) in paragraph (5), by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following new paragraphs:
‘‘(6) ‘United States’ means the several States, the District
of Columbia, the Commonwealth of Puerto Rico, the Common-
wealth of the Northern Mariana Islands, the territories and
possessions of the United States, and the areas and installa-
tions in the Republic of Panama that are made available to
the United States pursuant to the Panama Canal Treaty of
1977 and related agreements (as described in section 3(a) of
the Panama Canal Act of 1979); and
‘‘(7) ‘Foreign Service of the United States’ means the
Foreign Service as constituted under the Foreign Service Act
of 1980.’’;
(2) in section 5722—
(A) in subsection (a)(2), by striking ‘‘outside the United
States’’ and inserting ‘‘outside the continental United
States’’; and
(B) in subsection (b), by striking ‘‘United States’’ each
place it appears and inserting ‘‘Government’’;
(3) in section 5723(b), by striking ‘‘United States’’ each
place it appears and inserting ‘‘Government’’;
(4) in section 5724—
(A) in subsection (a)(3), by striking ‘‘, its territories
or possessions’’ and all that follows through ‘‘1979’’; and
(B) in subsection (i), by striking ‘‘United States’’ each
place it appears in the last sentence and inserting ‘‘Govern-
ment’’;
(5) in section 5724a, by striking subsection ( j);
(6) in section 5725(a), by striking ‘‘United States’’ and
inserting ‘‘Government’’;
(7) in section 5727(d), by striking ‘‘United States’’ and
inserting ‘‘continental United States’’;
(8) in section 5728(b), by striking ‘‘an employee of the
United States’’ and inserting ‘‘an employee of the Government’’;
(9) in section 5729, by striking ‘‘or its territories or
possessions’’ each place it appears;
(10) in section 5731(b), by striking ‘‘United States’’ and
inserting ‘‘Government’’; and
(11) in section 5732, by striking ‘‘United States’’ and
inserting ‘‘Government’’.