[Congressional Record Volume 143, Number 27 (Wednesday, March 5, 1997)]
[House]
[Pages H754-H756]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       THE TRAVEL AND TRANSPORTATION REFORM ACT OF 1997, H.R. 930

  The SPEAKER pro tempore (Mr. McInnis). Under a previous order of the 
House, the gentleman from California (Mr. HORN) is recognized for 5 
minutes.
  [Mr. Horn]. Mr. Speaker, I rise today to introduce the Travel and 
Transportation Reform Act of 1997, H.R. 930. Joining me as original 
cosponsors are the gentlewoman from New York [Mrs. Maloney], the 
gentleman from Florida [Mr. Mica], and the gentleman from Ohio [Mr. 
Portman].
  The Federal Government's travel expenditures are massive. In fiscal 
year 1994, the last year for which we have precise figures, the 
Government spent more than $7.6 billion on travel including 
transportation, lodging, rental cars and other related expenses. There 
are ample opportunities to save money from this huge sum without 
restricting necessary travel. The administrative costs, for example, 
are shockingly bloated. The cost of completing a travel voucher is 
about $15 in the private sector while it runs as high as $123 in the 
Federal sector. We should learn something from the private sector.
  There are several obstacles standing in the way of efficient and 
affordable Government travel. Consider for example that the agency 
managers simply do not have complete travel information available to 
them. As a result, it is impossible to effectively analyze their travel 
budgets in order to locate waste and reduce costs. The reason is 
simple. The governmentwide travel charge card is not used for many 
travel arrangements. This means valuable information that would be 
recorded on a credit card invoice is never gathered.
  The solution is uniform use of the travel card. This bill provides 
for uniform use with certain necessary exceptions. Agencies need clear 
authority to obtain information regarding the travel card issued to its 
employees. The agencies must be able to verify that charges are 
business related. This bill gives them that authority. This will make 
the Federal Government a better customer, which will in turn increase 
the size of the rebate that the Government receives.
  The Travel and Transportation Reform Act of 1997 contains several 
other provisions along these lines as well as authority to participate 
in travel pilot test programs. The idea is to clear away obstacles to 
better management, to encourage a concerted effort to improve the 
efficiency and cost-effectiveness of Federal travel.
  Mr. Speaker, I include a copy of H.R. 930 for inclusion in the 
Record:

                                H.R. 930

       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. AUTHORITY TO REQUIRE USE OF THE TRAVEL CHARGE CARD.

       (a) In General.--Under regulations issued by the 
     Administrator of General Services, the Administrator may 
     require that Federal employees use the travel charge card 
     established pursuant to the United States Travel and 
     Transportation Payment and Expense

[[Page H755]]

     Control System, or any Federal contractor-issued travel 
     charge, 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 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 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 
     net 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) Delayed Implementation.--The Administrator may delay 
     implementation of subsections (a) and (c) by up to 5 years if 
     the Administrator determines that it is in the best interests 
     of the United States to do so.

     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 Federal 
     entity or to any other activity. 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) 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

[[Page H756]]

     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.
       ``(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. 5737. Authority for relocation expenses test programs

       ``(a) 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 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.
       ``(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 5737 the 
     following new item:

``5737. Authority for relocation expenses test programs.''.

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