‘‘(5) verifying transportation rates, freight clas-
sifications, and other information provided on a Gov-
ernment bill of lading or transportation request, un-
less the Administrator of General Services has deter-
mined that verification by a prepayment audit con-
ducted 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.’’;
(B) in subsection (c)(1), by inserting after ‘‘de-
ductions’’ the following: ‘‘and 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 Gov-
ernment’’; and
(C) in subsection (c)(2), by inserting after
‘‘agreement’’ the following: ‘‘and the Administrator
of General Services has determined that verification
by a prepayment audit conducted pursuant to sec-
tion 3726(a) of this title for a particular mode or
modes of transportation, or for an agency or sub-
agency, 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 fol-
lows:
‘‘(a)(1) Each agency that receives a bill from a car-
rier or freight forwarder for transporting an individual or
property for the United States Government shall verify its
correctness (to include transportation rates, freight classi-
fications, or proper combinations thereof), using prepay-
ment audit, prior to payment in accordance with the re-
quirements of this section and regulations prescribed by
the Administrator of General Services.
‘‘(2) The Administrator of General Services may ex-
empt 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 appropriate.
‘‘(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) in order as subsections (d), (e), (f),
(g), (h), and (i), respectively;
(C) by inserting after subsection (a) the follow-
ing new subsections:
‘‘(b) The Administrator may conduct pre- or
postpayment audits of transportation bills of any Federal
agency. The number and types of bills audited shall be
based on the Administrator’s judgment.
‘‘(c)(1) The Administrator shall adjudicate transpor-
tation claims which cannot be resolved by the agency pro-
curing 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 ‘‘subsection (c)’’ and inserting ‘‘subsection
(e)’’, and by adding at the end the following new
sentence: ‘‘This reporting requirement expires De-
cember 31, 1998.’’;
(E) in subsection (i)(1), as so redesignated, by
striking ‘‘subsection (a)’’ and inserting ‘‘subsection
(c)’’; and
(F) by adding after subsection (i), as so redes-
ignated, the following new subsection:
‘‘(j) The Administrator of General Services may pro-
vide transportation audit and related technical assistance
services, on a reimbursable basis, to any other Federal en-
tity or to any other activity. Such reimbursements may
be credited to the appropriate revolving fund or appropria-
tion from which the expenses were incurred.’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall become effective 18 months after the
date of 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 Federal, State, and local income
taxes incurred by an employee of the agency or by an em-
ployee 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 pro-
vided.
‘‘(b) Reimbursements under this section shall include
an amount equal to all income taxes for which the em-
ployee and spouse, as the case may be, would be liable
due to the reimbursement for the taxes referred to in sub-
section (a). In addition, reimbursements 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 ex-
penses made by Public Law 102–486.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning 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 ex-
penses.’’.
(c) EFFECTIVE DATE.—This section shall be effective
as of January 1, 1993.
SEC. 5. AUTHORITY FOR TEST PROGRAMS.
(a) TRAVEL EXPENSES TEST PROGRAMS.—Sub-
chapter 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) Notwithstanding any other provision of this sub-
chapter, 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 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 re-
quest to the Administrator for approval of such a test pro-
gram an analysis of the expected costs and benefits and
a set of criteria for evaluating the effectiveness of the pro-
gram.
‘‘(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 appropriate 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 sec-
tion may be conducted simultaneously.
‘‘(e) The authority to conduct test programs under
this section shall expire 7 years after the date of enact-
ment of the Travel and Transportation Reform Act of
1997.’’.
(b) RELOCATION EXPENSES TEST PROGRAMS.—Sub-
chapter II of chapter 57 of title 5, United States Code,
is further amended by adding at the end the following new
section:
‘‘§ 5737. Authority for relocation expenses test pro-
grams
‘‘(a) Notwithstanding any other provision of this sub-
chapter, 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 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 re-
quest to the Administrator for approval of such a test pro-
gram an analysis of the expected costs and benefits and
a set of criteria for evaluating the effectiveness of the pro-
gram.
‘‘(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 appropriate 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 sec-
tion may be conducted simultaneously.
‘‘(e) The authority to conduct test programs under
this section shall expire 7 years after the date of enact-
ment of the Travel and Transportation Reform Act of
1997.’’.
(c) CLERICAL AMENDMENTS.—The table of sections
for chapter 57 of title 5, United States Code, is further
amended by—
(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
5737 the following new item:
‘‘5737. Authority for relocation expenses test programs.’’.
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