[House Report 108-673]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-673

======================================================================



 
   TRANSIT PASS TRANSPORTATION FRINGE BENEFITS FOR FEDERAL EMPLOYEES

                                _______
                                

 September 9, 2004.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Tom Davis of Virginia, from the Committee on Government Reform, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 1151]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Government Reform, to whom was referred the 
bill (H.R. 1151) to provide that transit pass transportation 
fringe benefits be made available to all qualified Federal 
employees in the National Capital Region; to allow passenger 
carriers which are owned or leased by the Government to be used 
to transport Government employees between their place of 
employment and mass transit facilities, and for other purposes, 
having considered the same, report favorably thereon without 
amendment and recommend that the bill do pass.

                                CONTENTS

                                                                   Page
Committee Statement and Views....................................     2
Section-by-Section...............................................     2
Explanation of Amendments........................................     3
Committee Consideration..........................................     3
Rollcall Votes...................................................     3
Application of Law to the Legislative Branch.....................     3
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................     3
Statement of General Performance Goals and Objectives............     3
Constitutional Authority Statement...............................     3
Unfunded Mandate Statement.......................................     4
Committee Estimate...............................................     4
Budget Authority and Congressional Budget Office Cost Estimate...     4
Changes in Existing Law Made by the Bill as Reported.............     6

                     Committee Statement and Views


                          PURPOSE AND SUMMARY

    H.R. 1151 seeks to ensure that transit pass transportation 
fringe benefits be made available to all qualified Federal 
employees in the National Capital Region and to allow passenger 
carriers which are owned or leased by the Government to be used 
to transport Government employees between their place of 
employment and mass transit facilities.

                  BACKGROUND AND NEED FOR LEGISLATION

    The National Capital Region (NCR) has many buildings that 
house the executive, legislative, and judicial branches of the 
government, and is home to over 330,000 federal employees. The 
Washington region has grown exponentially in recent years, and 
is currently the second most congested in the nation behind Los 
Angeles. As the region's largest employer, the federal 
government has a responsibility to its employees to expand 
commuting alternatives, and to the region to reduce federal 
employees' contribution to traffic congestion and air 
pollution.
    In 2000, Executive Order 13150 required all Executive 
Branch agencies in the National Capital Region to offer transit 
benefits to their employees. According to the Washington 
Metropolitan Area Transit Authority (WMATA) and the U.S. 
Department of Transportation, nearly one-third of all federal 
employees in the NCR have joined the federal transit benefit 
program. H.R. 1151 seeks to codify and expand this program to 
ensure the choice for all federal employees in the NCR.

                          LEGISLATIVE HISTORY

    H.R. 1151 was introduced by Representative James Moran on 
March 6, 2003. The Subcommittee on Civil Service and Agency 
Organization reported the bill to the full committee on July 
16, 2003. On September 25, 2003, the Committee met in open 
session, and by voice vote, ordered the bill favorably reported 
to the House of Representatives.

                           Section-by-Section


Section 1. Transit pass transportation fringe benefits

    Section 1 directs all executive branch agencies, including 
those not originally covered under Executive Order 13150, as 
well as the legislative and judicial branches, all independent 
federal agencies, the U.S. Postal Service and the Smithsonian 
Institution not originally covered by the executive order, to 
provide transit pass transportation fringe benefits in the 
amount equal to commuting costs and subject to the statutory 
maximum allowed under Title 26, United States Code, to 
qualified employees using qualified transit facilities in the 
National Capital Region.

Section 2. Authority to use government vehicles to transport federal 
        employees between their place of employment and transit 
        facilities

    Section 2 amends Section 1344 of Title 31 to authorize 
federal agencies to use, from funds already made available, 
government-owned or leased passenger carriers to transport 
employees between public transportation centers and their place 
of employment. The section authorizes the use of funds for the 
maintenance and repair of such vehicles.
    Section 2 would also require agencies to use alternative 
fuel vehicles when possible and coordinate with other agencies 
to avoid duplication.

                       Explanation of Amendments

    The Committee did not adopt any amendments.

                        Committee Consideration

    On September 25, 2003, the Committee met in open session, 
and by voice vote, ordered reported favorably the bill, H.R. 
1151.

                             Rollcall Votes

    No rollcall votes were held.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to the terms and conditions of 
employment or access to public services and accommodations. 
This bill seeks to ensure that transit pass transportation 
fringe benefits be made available to all qualified Federal 
employees in the National Capital Region and to allow passenger 
carriers which are owned or leased by the Government to be used 
to transport Government employees between their place of 
employment and mass transit facilities. Legislative branch 
employees in the National Capital Region have equal access to 
the benefits of this bill.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives are reflected in the descriptive portions 
of this report.

                   Constitutional Authority Statement

    Under clause 3(d)(1) of rule XIII of the Rules of the House 
of Representatives, the Committee must include a statement 
citing the specific powers granted to Congress to enact the law 
proposed by H.R. 1151. Article I, Section 8, Clause 18 of the 
Constitution of the United States provide Congress the power to 
enact this law.

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandate Reform Act, P.L. 104-4) requires a statement whether 
the provisions of the reported include unfunded mandates. In 
compliance with this requirement the Committee has received a 
letter from the Congressional Budget Office included herein.

                           Committee Estimate

    Clause 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 1231. However, clause 3(d)(3)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause (3)(c)(3) of rule XIII of the Rules 
of the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has received 
the following cost estimate for H.R. 1231 from the Director of 
Congressional Budget Office:

H.R. 1151--A bill to provide that transit pass transportation fringe 
        benefits be made available to all qualified federal employees 
        in the National Capital Region; to allow passenger carriers 
        which are owned or leased by the government to be used to 
        transport government employees between their place of 
        employment and mass transit facilities, and for other purposes

    Summary: H.R. 1151 would codify and expand Executive Order 
13150 to provide a tax-free transportation benefit to federal 
employees in the National Capital Region, beginning in fiscal 
year 2005. Issued in April 2000, Executive Order 13150 directed 
all executive branch agencies to provide employees in the 
National Capital Region who use public transportation to 
commute to work with free transit passes (known as METROcheks) 
with a value equal to actual commuting costs but not more than 
$100 per month. H.R. 1151 would expand this program to include 
employees with the legislative and judicial branches, the 
Smithsonian Institution, and the U.S. Postal Service. In 
addition, the legislation would allow federal agencies to 
extend existing transit services to take employees between work 
sites and public transportation centers.
    CBO estimates that expanding the transportation benefit 
program to postal employees in the National Capital Region 
would increase direct spending by the U.S. Postal Service by 
about $12 million over the 2005-2006 period. (Postal Service 
spending is classified as off-budget.) CBO estimates that 
extending the program to other federal employees in the region 
would cost $3 million annually, beginning in fiscal year 2005, 
subject to the availability of appropriated funds. This 
legislation would codify existing agency practices and 
policies; therefore, this estimate excludes executive, 
legislative, and judicial branch employees who can currently 
participate in the transportation benefit program.
    H.R. 1151 contains no intergovernmental or private-sector 
mandates as defined by the Unfunded Mandates Reform Act (UMRA), 
and CBO estimates that the bill would have no significant 
impact on state, local, or tribal governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 606 is shown in the following table. The 
costs of this legislation fall within budget functions 372 
(postal service), 500 (education, training, employment, and 
social services) and 800 (general government).

----------------------------------------------------------------------------------------------------------------
                                                                    By fiscal year, in millions of dollars--
                                                               -------------------------------------------------
                                                                  2004      2005      2006      2007      2008
----------------------------------------------------------------------------------------------------------------
                                           CHANGES IN DIRECT SPENDING

Off-Budget Effects--Postal Service:
    Estimated Budget Authority................................         0         6         6         0         0
    Estimated Outlays.........................................         0         6         6         0         0

                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Commuting Benefit for Nonpostal Federal Employees:
    Estimated Budget Authority................................         0         3         3         3         3
    Estimated Outlays.........................................         0         3         3         3         3
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that the 
legislation will be enacted by the start of fiscal year 2005, 
that the necessary amounts will be appropriated for each fiscal 
year, and that outlays will occur at historical patterns for 
similar programs.

Direct spending

    According to the Washington Metropolitan Area 
Transportation Authority (WMATA) and the Department of 
Transportation, the average annual benefit provided to federal 
employees in the National Capital Region is $1,080. CBO 
estimates that 25 percent of the 22,000 Postal Service 
employees in the National Capital Region would apply for the 
new benefit. That estimate is based on information by WMATA, 
which expects that Postal Service employeeswould use 
transportation benefits much less than other local federal employees 
because of their decentralized locations and varying office hours. 
About 40 percent of federal workers in the region currently use this 
transportation benefit. CBO estimates that enacting this legislation 
would cost the Postal Service about $6 million in each of the years 
2005 and 2006. Beginning in fiscal year 2007, there would be no net 
cost from the provision because the Postal Service is required to set 
rates to cover its costs, and CBO expects that the next rate increase 
will occur in 2006. At that time, it is possible that the Postal 
Service would also seek to recover prior unanticipated costs and that 
this provision could have no net cost over several years.

Spending subject to appropriation

    Transit Pass Transportation Fringe Benefits. To estimate 
the bill's impact on nonpostal federal employees in the region, 
CBO reviewed the experiences of offices within the three 
branches of government that already provide transit benefits 
and estimates provided by WMATA. Using that information, CBO 
found that in the National Capital Region, approximately 4,000 
federal employees are not eligible to receive the tax-free 
transportation benefit, and most of those employees work for 
the Smithsonian Institution. Using estimates provided by WMATA 
and the experiences of agencies that are similar in size and 
location to the Smithsonian Institution, we estimate that 75 
percent of those employees would participate in the program. 
That estimate is higher than the average for the area because 
of the limited parking and nearby METRO stations available to 
these employees. Hence, we estimate that providing the 
transportation benefit to other federal employees that are 
currently ineligible to participate would cost approximately $3 
million a year or $12 million over the 2005-2008 period, 
subject to appropriation of the necessary amounts.
    Use of Government Vehicles. Section 2 also would authorize 
federal agencies to use government-owned or leased passenger 
carriers to transport employees between their offices and 
public transportation centers. Under current law, the use of 
most government vehicles is only authorized for official 
purposes. If an agency chooses to provide additional 
transportation services under the bill, the legislation would 
require agencies to absorb the costs from funds already 
available; use alternative fueled vehicles if possible; and 
coordinate transportation routes with other federal agencies.
    For this estimate, CBO assumes that section 2 would affect 
only agencies in the National Capital Region because it would 
require agencies to consult with the National Planning 
Commission before offering expanded transportation services. 
CBO estimates that allowing federal agencies in the region to 
provide transportation from work places to public 
transportation centers would have no significant net impact on 
the federal budget.
    Under the bill, agencies could not provide employees with a 
combined monthly benefit from METROcheks and the use of 
government-provided transportation of greater than $100 per 
month. Consequently, we expect that the authority to use 
government vehicles to travel between public transportation 
centers and government work places would not be used 
extensively.
    Intergovernmental and private-sector impact: The bill 
contains no intergovernmental or private-sector mandates as 
defined by UMRA, and CBO estimates that the bill would have no 
significant impact on state, local, or tribal governments.
    Estimate prepared by: Federal Costs: Matthew Pickford and 
Mark Grabowicz; Impact on State, Local, and Tribal Governments: 
Sarah Puro; and Impact on the Private-Sector: Selena Caldera.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

              SECTION 1344 OF TITLE 31, UNITED STATES CODE


Sec. 1344. Passenger carrier use

  (a)(1)  * * *

           *       *       *       *       *       *       *

  (3) For purposes of paragraph (1)--
          (A) the transportation of an individual between such 
        individual's place of employment and a mass transit 
        facility pursuant to subsection (g) is transportation 
        for an official purpose; and
          (B) the term ``Federal agency'', as used in such 
        paragraph, shall be considered to mean a Government 
        agency (as defined by subsection (g)), to the extent 
        that the passenger carriers involved are used in the 
        provision of transportation services under such 
        subsection.

           *       *       *       *       *       *       *

  (g)(1) A passenger carrier may be used to transport an 
officer or employee of a Government agency between the 
officer's or employee's place of employment and a mass transit 
facility (whether or not publicly owned) in accordance with 
succeeding provisions of this subsection.
  (2) A Government agency that provides transportation services 
under this subsection shall absorb the costs of such services 
using any funds available to such agency, whether by 
appropriation or otherwise.
  (3) In carrying out this subsection, a Government agency 
shall--
          (A) to the maximum extent practicable, use 
        alternative fuel vehicles to provide transportation 
        services;
          (B) to the extent consistent with the purposes of 
        this subsection, provide transportation services in a 
        manner that does not result in additional gross income 
        for Federal income tax purposes; and
          (C) coordinate with other Government agencies to 
        share, and otherwise avoid duplication of, 
        transportation services provided under this subsection.
  (4) For purposes of any determination under chapter 81 of 
title 5, an individual shall not be considered to be in the 
``performance of duty'' by virtue of the fact that such 
individual is receiving transportation services under this 
subsection.
  (5)(A) The Administrator of General Services, after 
consultation with the National Capital Planning Commission and 
other appropriate agencies, shall prescribe any regulations 
necessary to carry out this subsection.
  (B) Transportation services under this subsection shall be 
subject neither to the last sentence of subsection (d)(3) nor 
to any regulations under the last sentence of subsection 
(e)(1).
  (6) As used in this subsection--
          (A) the term ``Government agency'' means a Federal 
        agency and the government of the District of Columbia; 
        and
          (B) the term ``passenger carrier'' means a passenger 
        motor vehicle, aircraft, boat, ship, or other similar 
        means of transportation that is owned or leased by the 
        United States Government or the government of the 
        District of Columbia.
  [(g)] (h) As used in this section--
          (1)  * * *

           *       *       *       *       *       *       *

  [(h)] (i) Notwithstanding section 410(a) of title 39, this 
section applies to the United States Postal Service.

                                  
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