[Senate Report 105-295]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 533
105th Congress                                                   Report
                                SENATE

 2d Session                                                     105-295
_______________________________________________________________________


 
             TRAVEL AND TRANSPORTATION REFORM ACT OF 1997

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                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





                August 25, 1998.--Ordered to be printed


                   COMMITTEE ON GOVERNMENTAL AFFAIRS

                   FRED THOMPSON, Tennessee, Chairman
WILLIAM V. ROTH, Jr., Delaware       JOHN GLENN, Ohio
TED STEVENS, Alaska                  CARL LEVIN, Michigan
SUSAN M. COLLINS, Maine              JOSEPH I. LIEBERMAN, Connecticut
SAM BROWNBACK, Kansas                DANIEL K. AKAKA, Hawaii
PETE V. DOMENICI, New Mexico         RICHARD J. DURBIN, Illinois
THAD COCHRAN, Mississippi            ROBERT G. TORRICELLI, New Jersey
DON NICKLES, Oklahoma                MAX CLELAND, Georgia
ARLEN SPECTER, Pennsylvania
          Hannah S. Sistare, Staff Director and Chief Counsel
                         Johanna Hardy, Counsel
                 Leonard Weiss, Minority Staff Director
                       Lynn L. Baker, Chief Clerk


                            C O N T E N T S

                              ----------                              
                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background.......................................................1
III. Legislative History..............................................4
 IV. Section-by-Section Analysis......................................4
  V. Estimated Cost of Legislation....................................8
 VI. Evaluation of Regulatory Impact.................................12
VII. Changes in Existing Law.........................................12


                                                       Calendar No. 533
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-295
_______________________________________________________________________


              TRAVEL AND TRANSPORTATION REFORM ACT OF 1998

                                _______
                                

                August 25, 1998.--Ordered to be printed

   Filed under authority of the order of the Senate of July 31, 1998

_______________________________________________________________________


Mr. Thompson, from the Committee on Governmental Affairs, submitted the 
                               following

                              R E P O R T

                [To accompany H.R. 930 with amendments]

      [Including cost estimate of the Congressional Budget Office]

                         I. Purpose and Summary

    The purpose of H.R. 930, the Travel and Transportation 
Reform Act of 1998, is to require employees to use Federal 
travel charge cards for payments of expenses of official 
government travel, amend title 31, United States Code, to 
establish requirements for prepayment audits of Federal agency 
transportation expenses, authorize reimbursement of Federal 
agency employees for taxes incurred on travel transportation 
reimbursements, and authorize test programs for the payment of 
Federal employee travel expenses and relocation expenses.

                             II. Background

    Federal travel results in significant expenditures for the 
federal government each year. Annually, the federal government 
spends approximately $7 billion on travel expenses. Congress, 
the Administration, and various federal agencies have taken 
steps over the years to try to streamline the federal travel 
system. The next step in the process is H.R. 930 which, among 
other things, requires the use of a federal charge card for 
official travel. Currently, the number of travel cards being 
used is approximately 1.6 million and the amount spent on those 
cards total $3 billion.
    Reducing federal travel costs has been a longstanding goal 
of the U.S. government. In 1978, the deregulation of U.S. 
airlines spurred competition and allowed for reduced rates to 
consumers including the federal government. The General 
Services Administration (GSA) developed programs such as City-
Pair and the Travel Management Centers to reduce the cost of 
federal travel. More recently, the Committee on Governmental 
Affairs Subcommittee on Oversight and Government Management 
held several hearings in 1995 and 1996 on reengineering the 
Department of Defense travel process. As a result, Congress 
passed and the President signed into law the Federal Employee 
Travel Reform Act of 1996 (Pub. L. 104-201) which made 
improvements in federal travel and relocation services.
    The provisions in that bill included legislative changes 
recommended by the Joint Financial Management Improvement 
Program's (JFMIP) Travel Improvement Project Team. JFMIP 
enlisted a multi-agency task force to focus on ways for the 
government to save money. This task force represented over two 
dozen entities from the Executive and Legislative branches of 
the federal government including the Office of Management and 
Budget, the General Accounting Office, the Department of the 
Treasury, and the Office of Personnel Management. Many of the 
JFMIP recommendations were incorporated in the Federal Employee 
Travel Reform Act of 1996 or by changes in regulations. 
Requiring the use of the federal travel charge card was one of 
the recommendations of the JFMIP Travel Improvement Project 
Team.
    H.R. 930 continues the effort to improve federal travel by 
saving unnecessary costs and making the process more efficient. 
To that end, H.R. 930 authorizes the mandatory use of the 
Federal charge card, establishes requirements for prepayment 
audits of transportation expenses, and authorizes test programs 
for the payment of Federal employee travel expenses and 
relocation expenses.

           Authority to require use of the travel charge card

    H.R. 930 authorizes the Administrator of General Services 
to require that Federal employees use the government-wide 
travel charge card. It also allows the Administrator of GSA to 
exempt any payment, person, type or class of payments, or type 
or class of personnel from this requirement. This provision 
provides exemptions for members of the Armed Forces upon 
request of the Department of Defense (due to the desire not to 
issue credit cards to new recruits) and requires GSA to consult 
with affected agencies before making the use of the card 
mandatory.
    Currently, Federal agencies receive a rebate based on 
charges made by its employees under the government-wide travel 
charge card program administered by GSA. Many payments, 
including cash advances, hotel charges and airline tickets for 
travel expenses are not charged to the card. This limits the 
potential rebate by millions of dollars per year.
    In addition, it deprives agency managers of information 
which would be useful in analyzing and reducing Federal travel 
costs. Because of this, H.R. 930 amends the Right to Financial 
Privacy Act of 1978. There has been some question as to the 
ability of the Federal government to access this information to 
verify that charges are business-related. This has made it 
difficult for the agency to distinguish between official and 
unofficial travel expenses. This bill makes it clear that the 
agency has access to this information.
    H.R. 930 authorizes the head of an agency to offset from an 
employee's salary his delinquent debts on a Federal travel 
charge card account that the government would ultimately be 
liable for paying. This allows the agency to ensure it does not 
lose money due to delinquent accounts.
    Further, H.R. 930 requires the GSA Administrator to 
promulgate specified regulations implementing the use of travel 
charge cards and prepare two separate reports to the Congress 
on agency compliance with requirements and regulations that 
have been issued.

             Prepayment Audits for Transportation Expenses

    H.R. 930 mandates what is now a voluntary program for 
Federal agencies: the audit of transportation bills for 
accuracy prior to payment. Attempts by GSA to get other 
agencies to audit transportation charges before payment on a 
voluntary basis have been generally unsuccessful even though 
prepayment audits have been shown to generally save agency 
resources.
    Transportation post-payment audits are a historical legacy 
of a regulated transportation market. Because of the difficulty 
in auditing invoices in a regulated environment, agencies have 
been using GSA to conduct post payment audits. Deregulation and 
technological advances have impacted positively on the current 
ability of agencies to determine the accuracy of transportation 
bills promptly, using immediate and easy computer access to 
rate information.
    Further, resources are often wasted in attempting to 
collect payments erroneously paid because no prepayment audit 
was performed. Money and human resources could be used more 
efficiently if the travel expenses were verified prior to 
payment. GSA uses audit contractors to perform prepayment 
audits on some transportation vouchers. These contractors have 
identified overpayments that were four times the amount of the 
payments to contractors, proving that this is a cost-effective 
tool. In contrast, the GSA Office of Transportation Audits 
spends $11 million to recover $12 million in overpayments using 
postpayment audits.
    According to the GSA, this change would save $50 million 
per year in reduced transportation expenses.

     Reimbursement for Taxes on Money Received for Travel Expenses

    The 1992 Energy Act inadvertently established a tax 
liability for certain Federal employees. The Energy Act limited 
the income tax deduction for business related travel expenses 
incurred while away from home to a maximum of one year (the 
prior maximum was two years). Because of this tax change, most 
Federal agencies have limited temporary assignment to one year.
    Many Federal agencies were unaware of this requirement 
because the IRS did not notify them until December of 1993. The 
agencies, therefore, did not withhold tax payments from the 
salaries of employees who were on temporary duty of more than 
one year. Thus, many of the impacted Federal employees were 
liable for a lump-sum payment plus penalties and interest. In 
some instances, the tax liability exceeds $1,000 per employee. 
The bill would provide a one-time reimbursement for the tax 
liability to those employees impacted by this oversight.
    According to GSA, this change would cost $4 million on a 
one-time basis.

                      Authority for Test Programs

    This section gives authority for Federal agencies to 
participate in travel pilot tests which would be expected to 
save taxpayer dollars. Agencies wishing to initiate pilot tests 
would need the approval of 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.

                               Amendments

    Chairman Thompson of the Committee on Governmental Affairs 
offered two amendments to this legislation. Both amendments 
were passed by voice vote in the Committee and reported out as 
part of the bill. The first amendment would allow for agency 
heads with the approval of the GSA Administrator to exempt 
certain payment types and personnel from the travel card 
requirement. This amendment was adopted to address concerns 
that there may be federal employees who pose a credit risk and 
there may be payment types, such as when vendors do not accept 
charge cards, which may not be conducive to the practical use 
of a credit card.
    The second amendment requires the Federal agency to 
reimburse the employee for travel expenses within 30 days from 
receiving a proper travel voucher from the employee. If the 
agency fails to reimburse the employee within the 30 day 
period, the agency would be required to pay a late fee as 
prescribed by GSA to the employee. The purpose of this 
amendment is to provide some incentive for agencies to 
reimburse employees in a timely fashion and ensure that 
employees do not have to use their own money to pay the bill 
for the required travel charge card.

                        III. Legislative History

    H.R. 930 was introduced in the House of Representatives by 
Rep. Horn (R-CA) on March 5, 1997. It passed the House of 
Representatives on April 16, 1997 by voice vote and was 
received by the Senate, and referred to the Committee on 
Governmental Affairs. The Senate Committee on Governmental 
Affairs considered H.R. 930 on June 17, 1998, and ordered it 
reported, with amendments, by voice vote.

                    IV. Section-by-Section Analysis

Section 1. Short title

    The title of the bill is the ``Travel and Transportation 
Reform Act of 1998.''

Section 2. Authority to require use of the travel charge card

    Section 2(a) would require the Administrator, after 
consultation with the Secretary of the Treasury, to issue 
regulations which mandate the use of a federal contractor-
issued travel charge card for payment of all expenses related 
to official travel. The section applies to members of the 
uniformed services and the Foreign Service, as well as Federal 
civilian employees. This section would exempt any payment, 
person, type or class of payment, or type or class of personnel 
from mandatory use of the travel charge card when: an exemption 
is in the best interest of the United States, payment through a 
charge card is impracticable or imposes unreasonable burdens or 
costs on Federal employees or Federal agencies, or with respect 
to members of the uniformed services, the Secretary of Defense 
or the Secretary of Transportation (for the Coast Guard) 
requests an exemption. Section 2 was developed to implement the 
Joint Financial Management Improvement Project(JFMIP) 
recommendations to mandate use of the travel charge card for travel and 
relocation.
     Subsection (b) would allow the head of a Federal agency or 
his designee to exempt any payment, person, type or class of 
payment, or type or class of agency personnel from paragraph 
(a) if it is determined that such an exemption is in the 
interest of the agency. The section also requires the head of 
the agency to notify the Administrator of the General Services 
Administration in writing within 30 days of granting the 
exemption.
     Subsection (c) would clarify that travel charge card 
information is exempt from the Right to Financial Privacy Act 
(RFPA). RFPA prohibits the Government from obtaining Federal 
employees' personal financial information except in certain 
situations. Although financial information obtained from the 
travel charge card contractor is not specifically exempted from 
RFPA, the Government still maintains it has the right to obtain 
management information on its contractor-issued charge cards.
     Subsection (d) would authorize the Administrator to allow 
an agency to establish an offset program to collect amounts, 
not disputed by the employee, that the employee owes to a 
travel charge card contractor on a delinquent account. An 
agency could offset delinquent amounts against an employee's 
salary and or wages.
     Subsection (e) would require the Administrator to issue 
regulations within 270 days after enactment of the Act to 
implement the provisions of subsections (a) and (d), and to 
require agencies to reimburse employees, within 30 days of the 
submission of a reimbursement claim, for travel expenses 
charged on a contractor-issued travel charge card.
     Subsection (f) mandates two separate reports to the 
Congress on agency compliance with requirements and regulations 
that have been issued, and requires each report to be based on 
a sampling survey of agencies that have expended more than $5 
million during the previous fiscal year on travel and 
transportation payments, including payments for employee 
relocation. It also directs the head of an agency to 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.
     Subsection (g) establishes that if the head of an agency 
fails to ensure that the agency reimburses the employee who 
submits the proper voucher for allowable travel expenses within 
30 days after the submission of the voucher, the agency would 
be required to pay a late fee to the employee as prescribed by 
the Administrator of GSA.

Section 3. Prepayment audits of transportation expenses

     Section 3 requires agencies to verify transportation 
charges through prepayment audits (instead of postpayment 
audits by GSA), unless the Administrator of General Services 
determines that such prepayment audits would not adequately 
protect the Government.
     Specifically, this section requires each agency that 
receives a bill from a carrier or freight forwarder for 
transporting an individual or property for the U.S. Government, 
to verify its correctness (to include transportation rates, 
freight classifications, or proper combinations thereof), using 
prepayment audit, prior to payment in accordance with the 
current requirements and regulations prescribed by the 
Administrator. The Administrator is permitted to exempt bills, 
a particular mode or modes of transportation, or an agency or 
subagency from a prepayment audit and verification and instead 
require a postpayment audit if it is cost effective, in the 
public interest, or other factors similar factors apply which 
the Administrator considers appropriate.
     Further, section 3 authorizes the Administrator to conduct 
pre- or post-payment audits of transportation bills of any 
Federal agency; it directs the Administrator to adjudicate 
transportation claims that cannot be resolved by the agency 
procuring the transportation services, or the carrier or 
freight-forwarder presenting the bill; it allows a claim only 
if it is received by the Administrator not later than three 
years (excluding time of war) after the later of the specified 
dates; it terminates the reporting requirement respecting a 
report of receipts, disbursements, and transfers on December 
31, 1998; and it allows the Administrator to provide 
transportation audits and related technical assistance 
services, on a reimbursable basis, to any other agency.

Section 4. Reimbursement for taxes on money received for travel 
        expenses

     Section 4 would authorize an income tax allowance for 
income taxes paid on long term temporary duty assignments. In 
1992, the Congress eliminated the travel expense deduction for 
travel assignments lasting more than one year, which caused all 
travel expense reimbursements to become taxable income to the 
employee. Further, the agency failed to withhold taxes due on 
these reimbursements leaving employees with large lump-sum tax 
payments. This section would compensate those employees for 
taxes incurred on travel expense reimbursements for assignments 
lasting more than one year.

Section 5. Authority for test programs

     Section 5 would allow the Administrator of General 
Services to authorize travel and relocation test programs. This 
section would allow agencies to test new methods of paying 
travel and relocation expenses without seeking authorizing 
legislation. If a test program proved successful, GSA could 
seek legislation to permanently implement the program and use 
data from that program to support GSA's legislative request.
     Section 5 also requires agencies to 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; it 
mandates a report to the Administrator and the appropriate 
congressional committees; and it limits the number of test 
programs that may be conducted simultaneously.

Section 6. Definition of United States

     Section 6 would provide a single definition of the United 
States for use throughout subchapter II of chapter 57 of title 
5, United States Code. According to GSA, the lack of a 
definition of the United States in subchapter II has resulted 
in cumbersome and confusing statutory construction of 
relocation allowances. This section would provide a single 
definition of ``United States'' throughout subchapter II which 
would include the United States, its territories and 
possessions, the Commonwealths of Puerto Rico and the Northern 
Mariana Islands, 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).
     Addition of the single definition would affect only one 
allowance--the allowance for house hunting trip expenses. 
Currently, the allowance is allowed only for employees 
transferring between official stations within the several 
States. Like those employees, however, employees transferred 
toa nonforeign area outside the several States currently are eligible 
for the temporary quarters subsistence expenses and residence 
transaction expenses allowances. This section would create parity for 
employees transferred to a nonforeign area by permitting agencies to 
also authorize a house hunting trip to the territories and possessions, 
the Commonwealths of Puerto Rico and the Northern Mariana Islands, 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).

Section 7. Technical corrections to the Federal Employee Travel Reform 
        Act of 1996

     Section 7 would make certain technical corrections to the 
Federal Employee Travel Reform Act of 1996. This section is 
designed to ensure that the provisions of the Federal Employee 
Travel Reform Act of 1996 are technically correct and can be 
implemented as originally envisioned.

                    V. Estimated Cost of Legislation

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, July 1, 1998.
Hon. Fred Thompson,
Chairman, Committee on Governmental Affairs,
 U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 930, the Travel 
and Transportation Reform Act of 1998.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is John R. 
Righter.
            Sincerely,
                                          Paul Van de Water
                                   (For June E. O'Neill, Director).
    Enclosure.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

H.R. 930--Travel and Transportation Reform Act of 1998

    Summary: H.R. 930 would require that federal agencies 
verify travel and transportation bills for accuracy prior to 
payment and that employees use a government charge card for 
official travel. In addition, the legislation would allow 
agencies to reimburse employees for certain tax liabilities. 
CBO estimates that enacting this legislation would reduce 
federal travel costs--which are largely paid out of 
appropriated funds--by about $90 million over the 1999-2003 
period by increasing the amount of funds saved by auditing 
transportation payments and by increasing the amount rebated to 
federal agencies by American Express or other contractors that 
issue charge cards for official government travel. These 
savings would be partially offset by payments of approximately 
$5 million in fiscal year 1999 to reimburse employees for 
certain taxes they had to pay. Agencies would be allowed to 
spend any of the funds saved from prepayment audits and travel 
card rebates. Hence, increasing the audits of transportation 
vouchers prior to payment or the use of a government charge 
card would have no net budgetary effect over time, unless 
agency appropriations were reduced to reflect the savings.
    Because implementing H.R. 930 would affect direct spending, 
pay-as-you-go procedures would apply. CBO estimates that 
enacting the legislation would increase direct spending by less 
than $1 million in fiscal year 2000 and by about $3 million 
each year thereafter. That change would result from increasing 
prepayment audits, which would reduce the net amount that the 
General Services Administration (GSA) recovers annually from 
auditing paid travel and transportation bills. Receipts above 
the amounts GSA spends to administer and pay for audit 
contracts accrue to the Treasury, whereas agencies may retain 
and spend the funds they save by auditing bills prior to 
payment. Because it would not take effect until 18 months after 
enactment, the provision would not affect spending in fiscal 
year 1999. In addition, the legislation also could affect 
travel costs and employee reimbursements by agencies notfunded 
through annual appropriations, such as the Tennessee Valley Authority 
(TVA) and the Bonneville Power Administration (BPA).
    H.R. 930 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: H.R. 930 would 
affect spending in three ways. First, it would require that 
agencies audit travel and transportation bills for accuracy 
prior to payment. Second, H.R. 930 would require that employees 
use the government-issued charge card to pay expenses related 
to official government travel. Third, it would allow agencies 
to reimburse its employees for all income taxes, as well as any 
penalties and interest incurred during tax years 1993 and 1994, 
that arose from a provision within the Energy Policy Act of 
1992 that limited deductions for business travel expenses. The 
legislation would allow agencies to reimburse their employees 
from funds authorized to pay administrative expenses.

Spending subject to appropriation

    Transportation Audits. H.R. 930 would require that agencies 
audit all travel and transportation bills prior to payment. 
Under current law, agencies may pay travel and transportation 
bills prior to any audit of the bill for accuracy. GSA uses 
private contractors to audit some travel and transportation 
bills after they are paid in order to identify and collect 
overcharges. GSA finances both the expenses of these contracts 
and its own administration expenses from the overcharges it 
recovers (about $16 million in fiscal year 1997), including 
balances from previous years. Any excess collections accrue to 
the Treasury. Additionally, GSA may audit travel and 
transportation bills prior to payment or delegate the authority 
to other agencies. (GSA has delegated the authority to 12 
agencies, including DOD, and the Departments of Energy, State, 
the Interior, and Veterans Affairs.)
    Requiring that agencies audit bills prior to payment would 
reduce discretionary costs. Savings would result if the amount 
of overcharges avoided by agencies through prepayment audits 
exceeded both the amount of overcharges recovered under current 
law and the amount of additional costs incurred in auditing all 
bills. H.R. 930 would allow the Administrator of GSA to exempt 
all or part of an agency or a particular mode of transportation 
based on such factors as cost-effectiveness. The provisions of 
this section would not take effect until 18 months after 
enactment, or the middle of fiscal year 2000.
    GSA estimates that, historically, audits of payment 
vouchers have uncovered about $1 in incorrect billings for 
every $100 in audited invoices (that is, 1 percent rate of 
return). Using the 1 percent historical rate of return cited 
above, the federal government could save a maximum of $110 
million annually by auditing 100 percent of the approximately 
$11 billion in annual payment for transportation of property. 
CBO estimates that achievable savings would likely fall 
significantly short of that maximum potential. Assuming that 
about 25 percent of the $11 billion represents payments from 
one federal agency to another and that, together, GSA and 
agencies with prepayment audit authority already audit about 
two-thirds of the remaining amounts obligated, then CBO 
estimates that requiring that agencies audit bills prior to 
payment could save less than $30 million annually. Because we 
expect that GSA would allow agencies to audit less than 100 
percent of all vouchers, CBO estimates that enacting H.R. 930 
would save about $10 million in fiscal year 2000 and between 
$20 million and $25 million annually in fiscal years 2001 
through 2003, or between $75 million and $80 million over the 
2000-2003 period. (Additional savings could result by auditing 
travel payments made to airlines: CBO, however, has no basis 
for estimating such potential savings.)
    Travel Charge Card. GSA's current contract provides that 
American Express rebate to the federal government an amount 
equal to 0.65 percent of the dollar value purchased with the 
travel card. (The American Express contract is set to expire 
early in fiscal year 1999.) According to GSA, agencies received 
approximately $20 million in rebates during fiscal year 1997. 
CBO estimates that if employees and agencies used the American 
Express charge card or a similar one to pay for all agency 
travel-related expenses, the federal government would be 
eligible to receive as much as $40 million in rebates during 
fiscal year 1999, or about $20 million more than the government 
expects to collect under current law. We estimate, however, 
that the amount rebated under H.R. 930 would be much lower for 
several reasons.
    First, the legislation would allow agencies to exempt any 
type or class of payments or personnel. Thus, based on 
information from GSA and the Department of Defense (DOD), we 
expect that DOD, which incurs about 60 percent of the 
government's travel-related expenses, would exempt its 
personnel from the legislation's requirement. In addition, we 
expect that agencies would exempt expenses that are generally 
not paid for with the travel card under current law, such as 
foreign travel, and that agencies whose costs to reconcile 
accounts are higher with the travel card than with traditional 
travel agent accounts would also exempt themselves from the 
legislation's requirement.
    Second, under H.R. 930, agencies could use other 
contractor-issued cards that provide a lower rebate rate.
    Third, while agency travel-related expenses are expected to 
remain relatively flat over the next several years, we expect 
that agencies will voluntarily increase their use of the 
government charge card under current law.
    As a result, CBO estimates that, assuming continuation of 
the 0.65 percent rebate in the current American Express 
contract, enacting H.R. 930 would increase the annual amount 
rebated to the federal government by less than $1 million in 
1999, allowing GSA time to issue the implementing regulations, 
and, on average, by about $3 million a year in subsequent 
years, for a total of between $10 million and $15 million over 
the 1999-2003 period.
    Once agencies have adapted their travel procurement and 
payment processes to the required use of the charge card, they 
would reduce administrative costs further by consolidating 
travel expenditures and streamlining the process for requesting 
advance travel funds. CBO, however, has no basis for estimating 
the amount of such potential savings.
    Employee Reimbursements. The Energy Policy Act of 1992 
(Public Law 102-486) limited an individual's ability to deduct 
from income the expense of business-related travel that extends 
over a period of more than one year. Because some federal 
agencies were not immediately aware of the change in the tax 
code, some employees did not have a sufficient amount of income 
withheld to pay their expected taxes. H.R. 930 would allow 
agencies to reimburse those employees affected by the change in 
law, including paying any fines or penalties that arose from 
the inadequate withholdings. The Federal Bureau of 
Investigation was granted similar authority to reimburse 
employees in its 1997 appropriation (Public Law 104-208).
    Based on information provided by GSA, CBO estimates that 
reimbursing employees for taxes, penalties, and interest from 
the change in the tax code under the Energy Policy Act would 
cost the federal government about $5 million in 1999, assuming 
appropriation of the necessary amounts. Because agencies have 
since limited most temporary duty travel to less than one year, 
and because the legislation would permit agencies to pay 
interest and penalties for the 1993 and 1994 tax years only, 
CBO estimates that annual reimbursement for future travel would 
not be significant.

Direct spending

    Prepayment Audits. In addition to the effects on 
discretionary spending mentioned above, H.R. 930 would also 
increase direct spending by reducing the amount of overcharges 
that GSA recovers by auditing payments under current law. These 
recoveries are recorded as offsetting receipts, and GSA outlays 
for this purpose are direct spending. Over the last five years, 
GAS's recovery of overpayments for the federal government has 
exceeded its expenses to pay for and administer audit contracts 
by an annual average of about $4 million.
    GSA's recoveries would decrease because agencies would 
prevent many of the billing errors now detected by GSA. CBO 
expects, however, that GSA would reduce the size and scope of 
its staff responsible for overseeing the audit contracts, which 
would counterbalance some of the decrease in offsetting 
receipts. CBO estimates that the net increase in direct 
spending would amount to less than $1 million in fiscal year 
2000 and about $3 million each year thereafter.
    Agencies Not Funded Through Appropriations. For most 
agencies, any change in spending would be subject to 
appropriation action. However, H.R. 930 could affect spending 
by agencies not funded through annual appropriations, such as 
TVA or BPA. CBO estimates that such effects would not be 
significant.
    Pay-as-you-go-considerations: Section 252 of the Balanced 
Budget and Emergency Deficit Control Act sets up pay-as-you-go 
procedures for legislation affecting direct spending or 
receipts. The net changes in outlays that are subject to pay-
as-you-go procedures are shown in the following table. For 
purposes of enforcing pay-as-you-go procedures, only the 
effects in the current year, the budget year, and the 
succeeding four years are counted.

----------------------------------------------------------------------------------------------------------------
                                                      By fiscal years, in millions of dollars--                 
                                    ----------------------------------------------------------------------------
                                      1998   1999   2000   2001   2002   2003   2004   2005   2006   2007   2008
----------------------------------------------------------------------------------------------------------------
Changes in outlays.................      0      0      1      3      3      3      3      3      3      3      3
Changes in receipts................                                                                             
(10) Not applicable                                                                                             
----------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: H.R. 930 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Previous CBO estimate: On April 14, 1997, CBO prepared a 
cost estimate for H.R. 930, as ordered reported by the House 
Committee on Government Reform and Oversight on March 12, 1997. 
For the House version of H.R. 930, CBO estimated the 
legislation would reduce travel costs by approximately $105 
million over a five-year period, or between $15 million and $20 
million more than estimated for the Senate version. The lower 
estimate results primarily from two factors, both of which 
involve the legislation's mandate that agencies use the 
government charge card for all travel expenses. First, the 
Senate version would allow agencies to exempt any type or class 
of payment or employee from the charge card mandate; we expect 
that agencies would use this authority. Second, the estimate of 
the maximum rebate in 1999 is lower than the amount assumed in 
the earlier estimate.
    Estimate prepared by: John R. Righter.
    Estimate approved by: Paul N. Van de Water, Assistant 
Director for Budget Analysis.

                  VI. Evaluation of Regulatory Impact

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill. The enactment of 
this legislation will not have a significant regulatory impact.

                      VII. Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported with amendments, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic and existing law in 
which no change is proposed is shown in roman):

                           UNITED STATES CODE

                      TITLE 12, BANKS AND BANKING

                 CHAPTER 35--RIGHT TO FINANCIAL PRIVACY

Sec. 3413. Exceptions

    (a) * * *

           *       *       *       *       *       *       *

    (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.

           *       *       *       *       *       *       *


                           UNITED STATES CODE

                      TITLE 31, MONEY AND FINANCE

                   Subtitle III--Financial Management

           CHAPTER 33--DEPOSITING, KEEPING, AND PAYING MONEY

                        Subchapter II--Payments

Sec. 3322. Disbursing officials

    (a) * * *

           *       *       *       *       *       *       *

    (c) A disbursing official is not liable for an overpayment 
provided under a United States Government bill of lading or 
transportation request when the overpayment is caused by the--
          (1) use of improper transportation rates or 
        classifications 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; or
          (2) failure to deduct the proper amount under--
                  (A) a land grant law; or
                  (B) an equalization or other agreement.

           *       *       *       *       *       *       *


                           UNITED STATES CODE

                      TITLE 31, MONEY AND FINANCE

                   Subtitle III--Financial Management

                 CHAPTER 35--ACCOUNTING AND COLLECTION

             Subchapter III--Auditing and Settling Accounts

Sec. 3528. Responsibilities and relief from liability of certifying 
                    officials

    (a) A certifying official certifying a voucher is 
responsible for--
          (1) information stated in the certificate, voucher, 
        and supporting records;
          (2) the computation of a certified voucher under this 
        section and section 3325 of this title;
          (3) the legality of a proposed payment under the 
        appropriation or fund involved; [and]
          (4) repaying a payment--
                  (A) illegal, improper, or incorrect because 
                of an inaccurate or misleading certificate;
                  (B) prohibited by law; or
                  (C) that does not represent a legal 
                obligation under the appropriation or fund 
                involved[.]; and
          (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.

           *       *       *       *       *       *       *

    (c) The Comptroller General shall relieve a certifying 
official from liability for an overpayment--
          (1) to a common carrier under section 3726 of this 
        title when the Comptroller General decides the 
        overpayment occurred only because the administrative 
        audit before payment did not verify transportation 
        rates, freight classifications, or land-grant 
        deductions 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; or
          (2) provided under a Government bill of lading or 
        transportation request when the overpayment was the 
        result of using improper transportation rates or 
        classifications or the failure to deduct the proper 
        amount under a land-grant law or agreement 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.

           *       *       *       *       *       *       *


                           UNITED STATES CODE

                      TITLE 31, MONEY AND FINANCE

                   Subtitle III--Financial Management

                           CHAPTER 37--CLAIMS

      Subchapter III--Claims Against the United States Government

Sec. 3726. Payment for transportation

    [(a) A carrier or freight forwarder presenting a bill for 
transporting an individual or property for the United States 
Government may be paid before the Administrator of General 
Services conducts an audit, in accordance with regulations that 
the Administrator shall prescribe. 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:
          [(1) accrual of the claim;
          [(2) payment for the transportation is made;
          [(3) refund for an overpayment for the transportation 
        is made; or
          [(4) a deduction under subsection (b) of this section 
        is made.]
    (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) 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.
    [(b)](d) Not later than 3 years (excluding time of war) 
after the time a bill is paid, the Government may deduct from 
an amount subsequently due a carrier or freight forwarder an 
amount paid on the bill that was greater than the rate allowed 
under--
          (1) a lawful tariff under title 49 or on file with 
        the Secretary of Transportation with respect to foreign 
        air transportation (as defined in section 40102(a) of 
        title 49), the Federal Maritime Commission, or a State 
        transportation authority;
          (2) a lawfully quoted rate subject to the 
        jurisdiction of the Surface Transportation Board; or
          (3) sections 10721, 13712, and 15504 of title 49 or 
        an equivalent arrangement or an exemption.
    [(c)](e) * * *

           *       *       *       *       *       *       *

    [(d)](f) At least annually, and as determined by the 
Administrator, after making adequate provision for expense of 
refunds to carriers, transportation audit postpayment 
contracts, contract administration, and other expenses 
authorized in [subsection (c)] subsection (e), overpayments 
collected by the General Services Administration shall be 
transferred to miscellaneous receipts of the Treasury. A report 
of receipts, disbursements, and transfers (to miscellaneous 
receipts) pursuant to this section shall be made annually in 
connection with the budget estimates to the Director of the 
Office of Management and Budget and to the Congress. This 
reporting requirement expires December 31, 1998.
    [(e)](g) * * *

           *       *       *       *       *       *       *

    [(f)](h) * * *

           *       *       *       *       *       *       *

    [(g)](i)(1) A carrier or freight forwarder may request the 
Comptroller General to review the action of the Administrator 
if the request is received not later than 6 months (excluding 
time of war) after the Administrator acts or within the time 
stated in [subsection (a)] subsection (c) of this section, 
whichever is later.
    (2) This section does not prevent the Comptroller General 
from conducting an audit under chapter 35 of this title.
    (j) This 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.

           *       *       *       *       *       *       *


                           UNITED STATES CODE

             TITLE 5, GOVERNMENT ORGANIZATION AND EMPLOYEES

                               CHAPTER 57

   Subchapter I--Travel and Subsistence Expenses; Mileage Allowances

Sec.
5701. Definitions.
5702. Per diem; employees traveling on official business.
5703. Per diem, travel, and transportation expenses; experts and 
          consultants; individuals serving without pay.
5704. Mileage and related allowances.
5705. Advancements and deductions.
5706. Allowable travel expenses.
5706a. Subsistence and travel expenses for threatened law enforcement 
          personnel.
5706b. Interview expenses.
5706c. Reimbursement for taxes incurred on money received for travel 
          expenses.
5707. Regulations and reports.
5707a. Adherence to fire safety guidelines in establishing rates and 
          discounts for lodging expenses.
5708. Effect on other statutes.
5709. Air evacuation patients: furnished subsistence.
5710. Authority for travel expenses test programs.


   Subchapter II--Travel and Transportation Expenses; New Appointees, 
               Student Trainees, and Transferred Employees


5721. Definitions.
5722. * * *
     * * * * * * *
5738. Regulations.
5739. Authority for relocation expenses test programs.
     * * * * * * *

                           UNITED STATES CODE

             TITLE 5, GOVERNMENT ORGANIZATION AND EMPLOYEES

                          PART III--EMPLOYEES

                     Subpart D--Pay and Allowances

          CHAPTER 57--TRAVEL, TRANSPORTATION, AND SUBSISTENCE

   Subchapter I--Travel and Subsistence Expenses; Mileage Allowances

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.

           *       *       *       *       *       *       *


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 1998.

           *       *       *       *       *       *       *


                           UNITED STATES CODE

             TITLE 5, GOVERNMENT ORGANIZATION AND EMPLOYEES

                          PART III--EMPLOYEES

                     Subpart D--Pay and Allowances

          CHAPTER 57--TRAVEL, TRANSPORTATION, AND SUBSISTENCE

  Subchapter II--Travel and Transportation Expenses; New Appointees, 
              Student Trainees, and Transferred Employees

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 1998.

           *       *       *       *       *       *       *


                           UNITED STATES CODE

             TITLE 5, GOVERNMENT ORGANIZATION AND EMPLOYEES

                          PART III--EMPLOYEES

                     Subpart D--Pay and Allowances

          CHAPTER 57--TRAVEL, TRANSPORTATION, AND SUBSISTENCE

  Subchapter II--Travel and Transportation Expenses; New Appointees, 
              Student Trainees, and Transferred Employees

Sec. 5721. Definitions

    For the purpose of this subchapter--
          (1) ``agency'' means--

           *       *       *       *       *       *       *

          (2) ``employee'' means an individual employed in or 
        under an agency;
          (3) ``continental United States'' means the several 
        States and the District of Columbia, but does not 
        include Alaska or Hawaii;
          (4) ``Government'' means the government of the United 
        States and the government of the District of Columbia; 
        [and]
          (5) ``appropriation'' includes funds made available 
        by statute under section 9104 of title 31[.];
          (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.

                           UNITED STATES CODE

             TITLE 5, GOVERNMENT ORGANIZATION AND EMPLOYEES

                          PART III--EMPLOYEES

                     Subpart D--Pay and Allowances

          CHAPTER 57--TRAVEL, TRANSPORTATION, AND SUBSISTENCE

  Subchapter II--Travel and Transportation Expenses; New Appointees, 
              Student Trainees, and Transferred Employees

Sec. 5722. Travel and transportation expenses of new appointees; posts 
                    of duty outside the continental United States

    (a) Under regulations as prescribed under section 5738 of 
this title and subject to subsections (b) and (c) of this 
section, an agency may pay from its appropriations--
          (1) travel expenses of a new appointee and 
        transportation expenses of his immediate family and his 
        household goods and personal effects from the place of 
        actual residence at the time of appointment to the 
        place of employment outside the continental United 
        States;
          (2) these expenses on the return of an employee from 
        his post of duty outside the continental United States 
        to the place of his actual residence at the time of 
        assignment to duty [outside the United States];
          (3) the expenses of transporting a privately owned 
        motor vehicle as authorized under section 5727(c) of 
        this title.
    (b) An agency may pay expenses under subsection (a)(1) of 
this section only after the individual selected for appointment 
agrees in writing to remain in the Government service for a 
minimum period of--
          (1) one school year as determined under chapter 25 of 
        title 20, if selected for appointment to a teaching 
        position, except as a substitute, in the Department of 
        Defense under that chapter; or
          (2) 12 months after his appointment, if selected for 
        appointment to any other position; unless separated for 
        reasons beyond his control which are acceptable to the 
        agency concerned. If the individual violates the 
        agreement, the money spent by the [United States] 
        Government for the expenses is recoverable from the 
        individual as a debt due the [United States] 
        Government.

           *       *       *       *       *       *       *


                           UNITED STATES CODE

             TITLE 5, GOVERNMENT ORGANIZATION AND EMPLOYEES

                          PART III--EMPLOYEES

                     Subpart D--Pay and Allowances

          CHAPTER 57--TRAVEL, TRANSPORTATION, AND SUBSISTENCE

  Subchapter II--Travel and Transportation Expenses; New Appointees, 
              Student Trainees, and Transferred Employees

Sec. 5723. Travel and transportation expenses of new appointees and 
                    student trainees

    (a) * * *

           *       *       *       *       *       *       *

    (b) An agency may pay travel and transportation expenses 
under subsection (a) of this section only after the individual 
selected or assigned agrees in writing to remain in the 
Government service for 12 months after his appointment or 
assignment, unless separated for reasons beyond his control 
which are acceptable to the agency concerned. If the individual 
violates the agreement, the money spent by the [United States] 
Government for the expenses is recoverable from the individual 
as a debt due the [United States] Government.

           *       *       *       *       *       *       *


                           UNITED STATES CODE

             TITLE 5, GOVERNMENT ORGANIZATION AND EMPLOYEES

                          PART III--EMPLOYEES

                     Subpart D--Pay and Allowances

          CHAPTER 57--TRAVEL, TRANSPORTATION, AND SUBSISTENCE

  Subchapter II--Travel and Transportation Expenses; New Appointees, 
              Student Trainees, and Transferred Employees

Sec. 5724. Travel and transportation expenses of employees transferred; 
                    advancement of funds; reimbursement on commuted 
                    basis

    (a) Under such regulations as the President may prescribe 
and when the head of the agency concerned or his designee 
authorizes or approves, the agency shall pay from Government 
funds--
          (1) * * *

           *       *       *       *       *       *       *

          (3) upon the separation (or death in service) of a 
        career appointee, as defined in section 3132(a)(4) of 
        this title, the travel expenses of that individual (if 
        applicable), the transportation expenses of the 
        immediate family of such individual, and the expenses 
        of moving (including transporting, packing, crating, 
        temporarily storing, draying, and unpacking) the 
        household goods of such individual and personal effects 
        not in excess of eighteen thousand pounds net weight, 
        to the place where the individual will reside (or, in 
        the case of a career appointee who dies in service or 
        who dies after separating but before the travel, 
        transportation, and moving is completed, to the place 
        where the family will reside) within the United States, 
        [its territories or possessions, the Commonwealth of 
        Puerto Rico, or the areas and installations in the 
        Republic of Panama 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], if such individual--

           *       *       *       *       *       *       *

    (i) An agency may pay travel and transportation expenses 
(including storage of household goods and personal effects) and 
other relocation allowances under this section and sections 
5724a, 5724b, and 5726(c) of this title when an employee is 
transferred within the continental United States only after the 
employee agrees in writing to remain in the Government service 
for 12 months after his transfer, unless separated for reasons 
beyond his control that are acceptable to the agency concerned. 
If the employee violates the agreement, the money spent by the 
[United States] Government for the expenses and allowances is 
recoverable from the employee as a debt due the [United States] 
Government.

           *       *       *       *       *       *       *


                           UNITED STATES CODE

             TITLE 5, GOVERNMENT ORGANIZATION AND EMPLOYEES

                          PART III--EMPLOYEES

                     Subpart D--Pay and Allowances

          CHAPTER 57--TRAVEL, TRANSPORTATION, AND SUBSISTENCE

  Subchapter II--Travel and Transportation Expenses; New Appointees, 
              Student Trainees, and Transferred Employees

Sec. 5724a. Relocation expenses of employees transferred or reemployed

    (a) [An agency shall pay] Under regulations prescribed 
under section 5738, an agency shall pay to or on behalf of an 
employee who transfers in the interest of the Government, a per 
diem allowance or the actual subsistence expenses, or a 
combination thereof, of the immediate family of the employee 
for en route travel of the immediate family between the 
employee's old and new official stations.
    (b)(1) [An agency may pay] Under regulations prescribed 
under section 5738, an agency may pay to or on behalf of an 
employee who transfers in the interest of the Government 
between official stations located within the United States--
          (A) the expenses of transportation of the employee 
        and the employee's spouse for travel to seek permanent 
        residence quarters at a new official station; and
          (B) either--
                  (i) a per diem allowance or the actual 
                subsistence expenses (or a combination of 
                both); or
                  [(ii) an amount for subsistence expenses.] 
                (ii) an amount for subsistence expenses, that 
                may not exceed a maximum amount determined by 
                the Administrator of General Services.

           *       *       *       *       *       *       *

    (c)(1) [An agency may pay] Under regulations prescribed 
under section 5738, an agency may pay to or on behalf of an 
employee who transfers in the interest of the Government--
          (A) actual subsistence expenses of the employee and 
        the employee's immediate family for a period of up to 
        60 days while the employee or family is occupying 
        temporary quarters when the new official station is 
        located within the United States; or
          (B) [an amount for subsistence expenses] an amount 
        for subsistence expenses, that may not exceed a maximum 
        amount determined by the Administrator of General 
        Services, instead of the actual subsistence expenses 
        authorized in subparagraph (A) of this paragraph.

           *       *       *       *       *       *       *

    (d)(1) [An agency shall pay] Under regulations prescribed 
under section 5738, an agency shall pay to or on behalf of an 
employee who transfers in the interest of the Government, 
expenses of the sale of the residence (or the settlement of an 
unexpired lease) of the employee at the old official station 
and purchase of a residence at the new official station that 
are required to be paid by the employee, when the old and new 
official stations are located within the United States.
    (2) [An agency shall pay] Under regulations prescribed 
under section 5738, an agency shall pay to or on behalf of an 
employee who transfers in the interest of the Government from a 
post of duty located outside the United States to an official 
station within the United States (other than the official 
station within the United States from which the employee was 
transferred when assigned to the foreign tour of duty)--
          (A) expenses required to be paid by the employee [for 
        the sale] of the sale of the residence (or the 
        settlement of an unexpired lease) of the employee at 
        the old official station from which the employee was 
        transferred when the employee was assigned to the post 
        of duty located outside the United States; and
          (B) expenses required to be paid by the employee [for 
        the purchase] of the purchase of a residence at the new 
        official station within the United States.

           *       *       *       *       *       *       *

    (8) [An agency may pay] Under regulations prescribed under 
section 5738, an agency may pay to or on behalf of an employee 
who transfers in the interest of the Government expenses of 
property management services, instead of expenses under 
[paragraph (2) or (3)] paragraph (1) or (2) of this subsection 
for sale of the employee's residence, when the agency 
determines that such transfer is advantageous and cost-
effective for the Government.

           *       *       *       *       *       *       *

    (e) [An agency may pay] Under regulations prescribed under 
section 5738, an agency may pay to or on behalf of an employee 
who transfers in the interest of the Government, the expenses 
of property management services when the employee transfers to 
a post of duty outside the United States. Such payment shall 
terminate upon return of the employee to an official station 
within the United States.

           *       *       *       *       *       *       *

    (f)(1) [Subject to paragraph (2)] Under regulations 
prescribed under section 5738 and subject to paragraph (2), an 
employee who is reimbursed under subsections (a) through (e) of 
this section or section 5724(a) of this title is entitled to an 
amount for miscellaneous expenses--

           *       *       *       *       *       *       *

    [(i) Subsections (a), (b), and (c) shall be implemented 
under regulations issued under section 5738 of this title.]

           *       *       *       *       *       *       *

    [(j) For purposes of subsections (c), (d), and (e), the 
term ``United States'' includes 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 (22 
U.S.C. 3602(a))).]

           *       *       *       *       *       *       *


                           UNITED STATES CODE

             TITLE 5, GOVERNMENT ORGANIZATION AND EMPLOYEES

                          PART III--EMPLOYEES

                     Subpart D--Pay and Allowances

          CHAPTER 57--TRAVEL, TRANSPORTATION, AND SUBSISTENCE

  Subchapter II--Travel and Transportation Expenses; New Appointees, 
              Student Trainees, and Transferred Employees

Sec. 5725. Transportation expenses; employees assigned to danger areas

    (a) When an employee of the [United States] Government is 
on duty, or is transferred or assigned to duty, at a place 
designated by the head of the agency concerned as inside a 
zone--
          (1) from which his immediate family should be 
        evacuated; or
          (2) to which they are not permitted to accompany him;

           *       *       *       *       *       *       *


                           UNITED STATES CODE

             TITLE 5, GOVERNMENT ORGANIZATION AND EMPLOYEES

                          PART III--EMPLOYEES

                     Subpart D--Pay and Allowances

          CHAPTER 57--TRAVEL, TRANSPORTATION, AND SUBSISTENCE

  Subchapter II--Travel and Transportation Expenses; New Appointees, 
              Student Trainees, and Transferred Employees

Sec. 5727. Transportation of motor vehicles

    (a) * * *

           *       *       *       *       *       *       *

    (d) An employee may transport only one motor vehicle under 
subsection (b) of this section during a 4-year period, except 
when the head of the agency concerned determines that 
replacement of the motor vehicle during the period is necessary 
for reasons beyond the control of the employee and is in the 
interest of the Government, and authorizes in advance the 
transportation under subsection (b) of this section of one 
additional privately owned motor vehicle as a replacement. When 
an employee has remained in continuous service outside the 
[United States] continental United States during the 4-year 
period after the date of transportation under subsection (b) of 
this section of his motor vehicle, the head of the agency 
concerned may authorize transportation under subsection (b) of 
this section of a replacement for that motor vehicle.

           *       *       *       *       *       *       *


                           UNITED STATES CODE

             TITLE 5, GOVERNMENT ORGANIZATION AND EMPLOYEES

                          PART III--EMPLOYEES

                     Subpart D--Pay and Allowances

          CHAPTER 57--TRAVEL, TRANSPORTATION, AND SUBSISTENCE

  Subchapter II--Travel and Transportation Expenses; New Appointees, 
              Student Trainees, and Transferred Employees

Sec. 5728. Travel and transportation expenses; vacation leave

    (a) * * *

           *       *       *       *       *       *       *

    (b) Under regulations prescribed under section 5738 of this 
title, an agency shall pay from its appropriations the expenses 
of round-trip travel of [an employee of the United States] an 
employee of the Government appointed by the President, by and 
with the advice and consent of the Senate, for a term fixed by 
statute, and of transportation of his immediate family, but not 
household goods, from his post of duty outside the continental 
United States, Alaska, and Hawaii to the place of his actual 
residence at the time of appointment to the post of duty, after 
he has satisfactorily completed each 2 years of service outside 
the continental United States, Alaska, and Hawaii and is 
returning to his actual place of residence to take leave before 
serving at least 2 more years of duty outside the continental 
United States, Alaska, and Hawaii.

           *       *       *       *       *       *       *


                           UNITED STATES CODE

             TITLE 5, GOVERNMENT ORGANIZATION AND EMPLOYEES

                          PART III--EMPLOYEES

                     Subpart D--Pay and Allowances

          CHAPTER 57--TRAVEL, TRANSPORTATION, AND SUBSISTENCE

  Subchapter II--Travel and Transportation Expenses; New Appointees, 
              Student Trainees, and Transferred Employees

Sec. 5729. Transportation expenses; prior return of family

    (a) Under regulations prescribed under section 5738 of this 
title, an agency shall pay from its appropriations, not more 
than once before the return to the United States [or its 
territories or possessions] of an employee whose post of duty 
is outside the continental United States, the expenses of 
transporting his immediate family and of shipping his household 
goods and personal effects from his post of duty to his actual 
place of residence when--
          (1) he has acquired eligibility for that 
        transportation; or
          (2) the public interest requires the return of the 
        immediate family for compelling personal reasons of a 
        humanitarian or compassionate nature, such as may 
        involve physical or mental health, death of a member of 
        the immediate family, or obligation imposed by 
        authority or circumstances over which the individual 
        has no control.
    (b) Under regulations prescribed under section 5738 of this 
title, an agency shall reimburse from its appropriations an 
employee whose post of duty is outside the continental United 
States for the proper transportation expenses of returning his 
immediate family and his household goods and personal effects 
to the United States [or its territories or possessions], 
when--
          (1) their return was made at the expense of the 
        employee before his return and for other than reasons 
        of public interest; and
          (2) he acquires eligibility for those transportation 
        expenses.
    (c) This section does not apply to appropriations for the 
Foreign Service of the United States.

           *       *       *       *       *       *       *


                           UNITED STATES CODE

             TITLE 5, GOVERNMENT ORGANIZATION AND EMPLOYEES

                          PART III--EMPLOYEES

                     Subpart D--Pay and Allowances

          CHAPTER 57--TRAVEL, TRANSPORTATION, AND SUBSISTENCE

  Subchapter II--Travel and Transportation Expenses; New Appointees, 
              Student Trainees, and Transferred Employees

Sec. 5731. Expenses limited to lowest first-class rate

    (a) * * *

           *       *       *       *       *       *       *

    (b) Instead of the maximum fixed by subsection (a) of this 
section, the allowance to an employee of the [United States] 
Government for actual expenses for transportation on an inter-
island steamship in Hawaii may not exceed the rate for 
accommodations on the steamship that is equivalent as nearly as 
possible to the rate for the lowest first-class accommodations 
on trans-pacific steamships.

           *       *       *       *       *       *       *


                           UNITED STATES CODE

             TITLE 5, GOVERNMENT ORGANIZATION AND EMPLOYEES

                          PART III--EMPLOYEES

                     Subpart D--Pay and Allowances

          CHAPTER 57--TRAVEL, TRANSPORTATION, AND SUBSISTENCE

  Subchapter II--Travel and Transportation Expenses; New Appointees, 
              Student Trainees, and Transferred Employees

Sec. 5732. General average contribution; payment or reimbursement

    Under such regulations as the President may prescribe, 
appropriations chargeable for the transportation of baggage and 
household goods and personal effects of employees of the 
[United States] Government, volunteers as defined by section 
8142(a) of this title, and members of the uniformed services 
are available for the payment or reimbursement of general 
average contributions required. Appropriations are not 
available for the payment or reimbursement of general average 
contributions--

                                
