[Congressional Record Volume 143, Number 45 (Wednesday, April 16, 1997)]
[House]
[Pages H1571-H1575]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              TRAVEL AND TRANSPORTATION REFORM ACT OF 1997

  Mr. HORN. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 930) 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, as amended.
  The Clerk read the bill, as follows:

                                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. REQUIRING USE OF THE TRAVEL CHARGE CARD.

       (a) In General.--Under regulations issued by the 
     Administrator of General Services

[[Page H1572]]

     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

[[Page H1573]]

     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

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
California [Mr. Horn] and the gentlewoman from New York [Mrs. Maloney] 
each will control 20 minutes.
  The Chair recognizes the gentleman from California [Mr. Horn].
  Mr. HORN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, the Federal Government's travel expenditures are 
massive. In fiscal year 1994, the last year for which precise figures 
are available, the Government spent more than $7.6

[[Page H1574]]

billion on travel, including transportation, lodging, rental cars, and 
other related expenses.
  There were ample opportunities to save money from this huge sum 
without restricting important travel. Administrative costs, for 
example, are shockingly bloated. The cost of completing a travel 
voucher is about $15 in the private sector, while it can run as high as 
$123 for each voucher in the Federal Government.
  There are several obstacles standing in the way of efficient and 
affordable Government travel. Agency managers simply do not have 
complete travel information available to them because of inconsistent 
payment methods. As a result, it is impossible to effectively analyze 
their travel budgets in order to locate waste and reduce costs.
  Related agencies are often unable to verify that travel charges are 
business related. They need clear authority to obtain information 
regarding the credit cards issued to employees for official Government 
travel. This information will make the Federal Government a better 
customer, which will in turn increase the size of the rebate the 
Government receives from businesses that provide services to Federal 
workers. Private firms currently receive larger rebates from businesses 
than does the Government.
  We should learn from private sector techniques. The Travel and 
Transportation Act of 1997 contains four major provisions that will 
clear away obstacles to better management.

                              {time}  1400

  By applying lessons from the private sector, it will encourage a 
concerted effort to improve the efficiency and the cost effectiveness 
of Federal travel. Section 1 of H.R. 930 specifies its short title, the 
Travel and Transportation Reform Act of 1997.
  Section 2 concerns the Federal travel charge card. H.R. 930 contains 
several changes to charge card policy that would save money and make 
the system work better. Use of the charge card provides managers with 
valuable information about their agency's travel costs. Currently, 
however, the card is used inconsistently and, therefore, valuable 
information that would be recorded on the charge card invoice is never 
gathered.
  As a result, agency managers lack the kind of detailed travel 
information necessary to effectively analyze their travel budgets, 
locate waste, and reduce costs. Congress realizes that not every 
merchant can accept charge cards, but the travel charge card should be 
used to the maximum extent possible. In addition, there may be some 
employees, Mr. Speaker, who may not be eligible for the travel charge 
card due to their poor credit histories or for some other reason. 
Obviously, the employee may be required to travel for official 
Government purposes, and an exemption may be required for these 
personnel.
  Universal use of the card would improve information available to 
managers, increase the rebate due to the Federal Government, and 
expedite the processing of travel reimbursements. H.R. 930 provides for 
universal use of the travel card throughout the Government by requiring 
the Administrator of General Services [GSA] to mandate use of the 
travel charge card. There are some exceptions that are permitted by the 
administrator. The intent behind this legislation is that use of the 
card will be used to the maximum extent practicable by Federal 
travelers.
  The definition of a travel charge card also includes a centrally 
billed account maintained by the agency. Agencies must be able to 
verify that charges on the travel card are business related. The 
Government's ability to access this information has been in question 
because of the Right to Financial Privacy Act, which restricts the 
release of an individual's financial records, including accounts 
maintained by the credit card issuer.
  This bill clarifies that the Government has the authority it needs to 
gather this information to ensure that the card is used properly. It 
also authorizes the head of a agency to conduct salary offset for 
Federal employees delinquent on their Federal travel charge accounts. 
This provision would make the Federal Government a better customer, as 
I noted earlier, and simplify administration for Federal agencies. The 
result would be an increase in the size of the Federal Government's 
rebate.
  H.R. 930 also includes an offset program to allow Federal agencies 
with travel charge card delinquency problems to deduct from the pay of 
an employee amounts needed to satisfy a delinquent debt owed to a card 
vendor. It is the intent of Congress that this deduction be made in 
coordination with the disbursing official in the U.S. Government. If 
the Treasury Department's financial management service cannot 
coordinate with agencies, Federal contractors may be paid prior to 
payments being made to Federal agencies. It it the intent of Congress 
that, when there is a conflict between a debt owed to a Federal 
contractor and a debt owed to a Federal agency, the Federal agency will 
be paid first.
  H.R. 930 also requires that GSA write regulations implementing this 
act. One portion of these regulations calls for timely disbursement of 
travel repayments due to employees. GSA will be responsible for 
determining what constitutes submission of travel expense vouchers in 
its regulatory process. Our committee, on both sides of the aisle, 
looks forward to working with GSA to ensure that the intent of Congress 
is reflected. In implementing this section and the remaining portions 
of the act, it is of utmost importance that GSA do so in a manner that 
will not impair competition among different vendors in the travel card 
program and will not unfairly affect Federal workers.
  Specifically, the inclusion of interest, fines, penalties or fees 
charged by bank charge card issuers should not be prohibited, 
eliminated or complicated by GSA regulations promulgated under this 
section. We in Congress believe that any such action limiting 
competition ultimately will not be in the best interest of the United 
States.
  Section 3 of the Travel and Transportation Reform Act of 1997 
concerns prepayment audits of travel charges. GSA's office of 
transportation audits conducted a pilot program that used audit 
contractors to perform prepayment audits on some transportation 
vouchers. This pilot identified overpayments worth four times the 
amount of the payments to the contractors, proving that this is a cost-
effective tool. All other invoices submitted to the Federal Government 
are reviewed for accuracy by the agency incurring the expense prior to 
payment. The bill authorizes prepayment audits by contractors to verify 
that the charges are correct prior to disbursement of transportation 
expenses. According to the General Services Administration, this change 
would save $50 million per year in reduced transportation expenses.
  Section 4 corrects an unjust tax liability. This will be of great 
interest to a number of Federal employees. The bill authorizes 
reimbursement to employees who were subjected to a tax liability in tax 
years 1993 and 1994, due to their service with the Federal Government. 
This tax liability was established by the 1992 Energy Act. The Energy 
Act limited the income tax deduction for business related travel to 
expenses incurred on trips of 1 year or less in duration. Most Federal 
agencies were unaware of this requirement because the IRS did not 
notify them until late December, 4 days to go before the new year in 
December 1993. And they did not withhold tax payments from the 
employees' salaries.
  Many of the affected Federal employees were liable for a lump sum 
payment, plus penalty and interest charges. In some instances, the tax 
liability exceeds $1,000 per employee. According to GSA, this 
correction would cost $4 million on a one-time basis.
  Section 5 encourages innovation in Federal travel. The sections of 
the U.S. Code relating to travel are extremely proscriptive and limit 
agency flexibility in developing improved benefit systems. This section 
allows Federal agencies to participate in travel pilot tests that 
would, it is hoped, save taxpayer dollars.
  Saving taxpayer dollars and enhancing Federal travel operations is 
the goal of this section. Agencies wishing to initiate pilot projects 
would need approval from the General Services Administration and would 
be required to submit proposals to the appropriate committees of 
Congress 30 days before the initiation of the pilot. This authority is 
limited to 10 pilot programs in each of the temporary duty travel and 
relocation travel areas.

[[Page H1575]]

  Mr. Speaker, the Congressional Budget Office estimates that the 
Travel and Transportation Reform Act of 1997 will save $105 million. I 
believe the actual amount will be higher, as GSA suggests, particularly 
if implementation is performed diligently. Poor management of the 
Federal Government's massive travel expenditures is wasting millions of 
tax dollars every year. The Travel and Transportation Reform Act of 
1997 will improve Federal agency operations and enhance efficiency. I 
look forward to the passage of H.R. 930.
  Mr. Speaker, I reserve the balance of my time.
  Mrs. MALONEY of New York. Mr. Speaker, I yield myself such time as I 
may consume.
  My thanks to the chairman for working with the minority in drafting 
the manager's amendment to this bill. The Government spends over $7.5 
billion annually on travel and relocation costs. I rise in support of 
this bill and in support of streamlining Government paperwork and 
saving the taxpayers millions in Government travel expenses.
  It is so simple. H.R. 930 just calls for the use of one travel card, 
one bill to pay, one bill to check. If every Government employee simply 
used this card for all travel related expenses, taxpayers would gain 
$105 million. The card comes with a 30-day money-back guarantee. 
Employees must be reimbursed within a month of their payment. H.R. 930 
does allow the agency to deduct certain unpaid travel charges from 
paychecks, unless the employee is disputing the charges.
  Even those deductions will not exceed 15 percent of the traveler's 
wages. H.R. 930 also calls for a review of shipping and other 
transportation expenses before they are paid. That seems extremely 
reasonable.
  Do not we all look at our bills before we pay them? This measure 
alone will save $50 million a year. Simplicity saves. Complications 
cost. I urge my colleagues to support this bill.
  Mr. HORN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I want to commend the gentlewoman from New York [Mrs. 
Maloney], the ranking Democrat on the subcommittee, for her complete 
cooperation in this further economy which the subcommittee has made 
over the last 2\1/2\ years.
  I think we saved $2 to $3 billion in legislation last year. And, as 
was noted, GSA says we will save $50 million this year. The 
Congressional Budget Office says we will save $150 million over the 
next 5 years.
  In any case, it is real money and it is money the taxpayers do not 
have to expend by more efficiency and effectiveness.
  Mrs. MALONEY of New York. Mr. Speaker, today, the House will pass 
H.R. 930, the Travel and Transportation Reform Act of 1997 under 
suspension of the rules. I would like to discuss a provision of that 
bill which was not raised today concerning the pilot programs on travel 
which agencies may conduct under the bill.
  Mr. Speaker, one of the pilot programs which I would like to see 
conducted involves not only sound management practices, but family 
values as well. Last year, H.R. 3637, the Travel Reform and Savings 
Act, contained a provision which would have given discretionary 
authority to an agency to pay employment assistance services to a 
spouse of an employee relocated to another duty station by the agency. 
That provision was not specifically included in H.R. 930. However, 
there is authority under section 4 of that bill to test this worthy 
provision, subject to certain congressional oversight procedures. GSA's 
general counsel's office concurs with this reading of the legislation, 
and Chairman Horn indicated a positive reaction to this suggestion at a 
subcommittee hearing held on the bill.
  Authorizing employment services on behalf of a spouse of a relocated 
employee is one of the recommendations of an indepth report by the 
interagency Joint Financial Management Improvement project. As that 
report points out, private sector companies have already discovered 
that to recruit and retain the best work force and ensure that 
relocated employees are fully productive, some form of employment 
assistance for relocating spouses represents money well spent. I am 
persuaded that what makes sense for the private sector makes sense in 
most cases for the Government. We need to determine if that is the case 
here.
  As I said, section 4 of H.R. 930 authorizes GSA to approve test 
programs in connection with payment of employee relocation. I believe 
that such a test program may well show that such assistance is in the 
best interest of the Government. And I believe it would be cost 
effective in terms of improved employee performance and reliability. We 
need to find out. In that regard, it is important to note that Congress 
will have an opportunity to preview proposed test programs and to 
review a report of their results. We can then make a fully informed 
decision about the extent to which these services are in the 
Government's interest.
  In conclusion, Mr. Speaker, I believe we need to test this proposal 
and urge GSA to favorably consider such a pilot program.
  Mrs. MALONEY of New York. Mr. Speaker, I yield back the balance of my 
time.
  Mr. HORN. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Upton). The question is on the motion 
offered by the gentleman from California [Mr. Horn] to suspend the 
rules and pass the bill, H.R. 930, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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