[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 930 Engrossed in House (EH)]


  1st Session

                               H. R. 930

_______________________________________________________________________

                                 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.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
105th CONGRESS
  1st Session
                                H. R. 930

_______________________________________________________________________

                                 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 1997''.

SEC. 2. REQUIRING USE OF THE TRAVEL CHARGE CARD.

    (a) In General.--Under regulations issued by the Administrator 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 
        Transportation (with respect to the Coast Guard) requests an 
        exemption with respect to the members of the uniformed 
        services.
    (b) Limitation on Restriction on Disclosure.--
            (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 Transportation 
        Payment and Expense Control System or any Federal contractor-
        issued travel charge card issued for official Government 
        travel.
    (c) Collection of Amounts Owed.--
            (1) In general.--Under regulations issued by the 
        Administrator 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 
        section 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 
                services 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.
    (d) Regulations.--Within 270 days after the date of enactment 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 System 
        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 
        (c) 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;
            (3) provide that any deduction under subsection (c) 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.
    (e) 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 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 sampling 
        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 necessary 
        information in a format prescribed by the Administrator and 
        approved by the Director of the Office of Management and 
        Budget.

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 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''.
    (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.'';
            (B) in subsection (c)(1), by inserting after ``deductions'' 
        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 Government''; 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 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 
transportation 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 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 following 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 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 
        ``subsection (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
            (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 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:
``Sec. 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 
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, 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 expenses 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 
                            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:
``Sec. 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 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 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 section may be 
conducted simultaneously.
    ``(e) The authority to conduct test programs under this section 
shall expire 7 years after the date of enactment of the Travel and 
Transportation Reform Act of 1997.''.
    (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:
``Sec. 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 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 section may be 
conducted simultaneously.
    ``(e) The authority to conduct test programs under this section 
shall expire 7 years after the date of enactment 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 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 
        Commonwealth of the Northern Mariana Islands, the territories 
        and possessions of the United States, and the areas and 
        installations 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 ``Government'';
            (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''.

SEC. 7. TECHNICAL CORRECTIONS TO THE FEDERAL EMPLOYEE TRAVEL REFORM ACT 
              OF 1996.

    Section 5724a of title 5, United States Code, is amended--
            (1) in subsections (a) and (d)(1) and (2), by striking ``An 
        agency shall pay'' each place it appears and inserting ``Under 
        regulations prescribed under section 5738, an agency shall 
        pay'';
            (2) in subsections (b)(1), (c)(1), (d)(8), and (e), by 
        striking ``An agency may pay'' each place it appears and 
        inserting ``Under regulations prescribed under section 5738, an 
        agency may pay'';
            (3) by amending subsection (b)(1)(B)(ii) to read as 
        follows:
                    ``(ii) an amount for subsistence expenses, that may 
                not exceed a maximum amount determined by the 
                Administrator of General Services.'';
            (4) in subsection (c)(1)(B), by striking ``an amount for 
        subsistence expenses'' and inserting ``an amount for 
        subsistence expenses, that may not exceed a maximum amount 
        determined by the Administrator of General Services,'';
            (5) in subsection (d)(2)(A), by striking ``for the sale'' 
        and inserting ``of the sale'';
            (6) in subsection (d)(2)(B), by striking ``for the 
        purchase'' and inserting ``of the purchase'';
            (7) in subsection (d)(8), by striking ``paragraph (2) or 
        (3)'' and inserting ``paragraph (1) or (2)'';
            (8) in subsection (f)(1), by striking ``Subject to 
        paragraph (2),'' and inserting ``Under regulations prescribed 
        under section 5738 and subject to paragraph (2),''; and
            (9) by striking subsection (i).

            Passed the House of Representatives April 16, 1997.

            Attest:

                                                                 Clerk.