[Federal Register Volume 65, Number 12 (Wednesday, January 19, 2000)]
[Rules and Regulations]
[Pages 3054-3058]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-695]



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Part III





General Services Administration





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41 CFR Part 301-51, et al.



Federal Travel Regulation; Mandatory Use of the Travel Charge Card; 
Final Rule

  FederalRegister / Vol. 65, No. 12 / Wednesday, January 19, 2000 / 
Rules and Regulations  

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GENERAL SERVICES ADMINISTRATION

41 CFR Parts 301-51, 301-52, 301-54, 301-70, 301-71 and 301-76

[FTR Amendment 90]
RIN 3090-AG92


Federal Travel Regulation; Mandatory Use of the Travel Charge 
Card

AGENCY:  Office of Governmentwide Policy, GSA.

ACTION:  Final rule.

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SUMMARY:  This final rule amends the Federal Travel Regulation (FTR) 
provisions pertaining to payment by the Government of expenses 
connected with official Government travel. This final rule implements 
the requirements of Public Law 105-264, October 19, 1998, regarding the 
required use of the travel charge card, collection of amounts owed, and 
reimbursement of travel expenses. This final rule also implements the 
Administrator of General Services' authority under Public Law 105-264 
to require agencies to pay expenses in connection with official 
Government travel.

DATES:  Effective Date: The provisions of this final rule are effective 
July 16, 1999.
    Applicability Date: The provisions of this final rule governing 
official travel apply to official travel performed after February 29, 
2000, or upon the issuance of agency implementing regulations, 
whichever occurs first.

FOR FURTHER INFORMATION CONTACT:  Sandra Batton, Travel and 
Transportation Management Policy Division, at (202) 501-1538.

SUPPLEMENTARY INFORMATION:

A. Background

    Pursuant to subsection 2(a) of Public Law 105-264, the 
Administrator of General Services is required to issue regulations 
``after consultation with the Secretary of the Treasury'' requiring 
Federal employees to use the travel charge card established pursuant to 
the United States Travel and Transportation Payment and Expense Control 
System, or any Federal contractor-issued travel charge card (including 
centrally billed accounts), for all payments of expenses of official 
Government travel.
    Additionally, Public Law 105-264 requires the Administrator of 
General Services to issue regulations on the reimbursement of travel 
expenses and collection of delinquent amounts upon written request of a 
Federal travel charge card contractor.
    The General Services Administration (GSA) has made a number of 
changes to this final rule in response to agency and public comments 
received on Interim Rule 8 published on July 16, 1999, at 64 FR 38528.
    Comments were received from twenty-two Federal agencies, seven 
unions and other organizations representing employees, fifty-two 
Federal employees, and one bank. All comments received were considered 
in the formulation of the final rule.
    Several comments were received regarding the definition of ``proper 
voucher''. GSA views a ``proper voucher'' as a travel claim that meets 
an agency's guidelines for what they have determined to be a ``proper 
voucher''. GSA does not see a need to restrict agencies by establishing 
Governmentwide standards on what constitutes a ``proper voucher''.
    Several comments received suggested expanding the list of expenses 
that are exempt from the mandatory use of the Government contractor-
issued travel charge card. In response to this request, we expanded the 
list of exempt expenses and added a list of personnel exempt from use 
of the Government contractor-issued travel charge card.
    Several requests were received for GSA to provide specific 
guidelines on appropriate disciplinary action for use of the Government 
contractor-issued travel charge card for non-official travel purposes. 
While we believe that each agency, not GSA, should set the level of 
action to take, we have provided an example of one agency's actions in 
the following table.

------------------------------------------------------------------------
             Offense                Minimum penalty     Maximum penalty
------------------------------------------------------------------------
First offense...................  Written reprimand.  Removal.
Second offense..................  Ten-day suspension  Removal.
Third offense...................  Fourteen-day        Removal.
                                   suspension.
------------------------------------------------------------------------

    Several comments were received recommending that the 30-calendar 
days after submission of a proper ``travel voucher'' begin when the 
travel claim is received in the payment office. GSA has not adopted 
this suggestion and feels that starting the 30-calendar day payment 
clock when the approving official receives the proper travel claim is 
more equitable to the employee. However, more guidance is provided on 
what is considered to be the date of receipt by the approving official.
    Several comments questioned the tax consequences for payment of a 
late fee to the employee when the agency fails to reimburse the 
employee within 30 calendar days after the receipt of a proper travel 
claim. The Internal Revenue Service (IRS) has determined that the late 
payment fee is in the nature of interest and that the additional fee, 
which is the amount equivalent to any late payment charge that the 
contractor would have been able to charge the employee, is considered 
to be income to the employee.
    It was suggested that a minimum amount be established for late 
payment fees. We agree with this suggestion and therefore establish a 
one-dollar threshold for the late payment fee.
    It was suggested that collection of undisputed delinquent amounts 
from the employee be allowed in circumstances where the employee has 
failed to submit a travel claim unless there are extenuating 
circumstances. We agree with this suggestion and have stipulated that 
employees failing to submit travel claims in accordance with Sec. 301-
52.7 are subject to their agencies' policies on the collection of 
undisputed delinquent amounts owed on the Government contractor-issued 
travel charge card.
    It was suggested that the requirement that agencies notify the 
Administrator of General Services not later than 30 days after granting 
an exemption from the mandatory use of the Government contractor-issued 
travel charge card be changed to allow semi-annual or annual reports on 
exemptions or eliminate the requirement all together. The Administrator 
of General Services does not have the authority to change or remove the 
30-day reporting requirement established in Public Law 105-264.
    GSA received several comments concerning usage provisions of the 
Government contractor-issued charge card contract and the employee's 
responsibility for prompt payment of charges incurred using the card 
for official Government travel. This rule does not place any new 
financial burdens on the employee; it simply reminds the employee and 
the agency that the employee is responsible for payment of the bill in 
accordance with the cardholder agreement. Therefore, we have not 
addressed those comments in this rule.

B. Regulatory Flexibility Act

    This final rule is not required to be published in the Federal 
Register for notice and comment; therefore, the Regulatory Flexibility 
Act does not apply.

C. Executive Order 12866

    GSA has determined that this final rule is not a significant 
regulatory action for the purposes of Executive Order 12866 of 
September 30, 1993.

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D. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because this final rule 
does not impose recordkeeping or information collection requirements, 
or the collection of information from offerors, contractors, or members 
of the public which require the approval of the Office of Management 
and Budget (OMB) under 44 U.S.C. 501 et seq.

E. Small Business Regulatory Enforcement Fairness Act

    This final rule is also exempt from congressional review prescribed 
under 5 U.S.C. 801 since it relates solely to agency management and 
personnel.

List of Subjects in 41 CFR Parts 301-51, 301-52, 301-54, 301-70, 
301-71, and 301-76

    Government employees, Travel and transportation expenses.


    For the reasons set forth in the preamble, 41 CFR Chapter 301 is 
amended as follows:

PART 301-51--PAYING TRAVEL EXPENSES I111. The authority for part 
301-51 is revised to read as follows:

    Authority:  5 U.S.C. 5707. Subpart A is issued under the 
authority of Sec. 2, Pub. L. 105-264, 112 Stat. 2350 (5 U.S.C. 5701 
note); 40 U.S.C. 486(c).

    2. Part 301-51 is amended by revising subpart A to read as follows:
Subpart A--General
Sec.
301-51.1  What is the required method of payment for official travel 
expenses?
301-51.2  What official travel expenses and/or classes of employees 
are exempt from the mandatory use of the Government contractor-
issued travel charge card?
301-51.3  Who in my agency has the authority to grant exemptions 
from the mandatory use of the Government contractor-issued travel 
charge card?
301-51.4  If my agency grants an exemption, does that prevent me 
from using the card on a voluntary basis?
301-51.5  How may I pay for official travel expenses if I receive an 
exemption from use of the Government contractor-issued travel charge 
card?
301-51.6  May I use the Government contractor-issued travel charge 
card for purposes other than those associated with official travel?
301-51.7  What are the consequences of using the Government 
contractor-issued travel charge card for non-official travel 
purposes?

Subpart A--General


Sec. 301-51.1  What is the required method of payment for official 
travel expenses?

    You are required to use the Government contractor-issued travel 
charge card for all official travel expenses unless you have an 
exemption.


Sec. 301-51.2  What official travel expenses and/or classes of 
employees are exempt from the mandatory use of the Government 
contractor-issued travel charge card?

    The Administrator of General Services exempts the following from 
the mandatory use of the Government contractor-issued travel charge 
card:
    (a) Expenses incurred at a vendor that does not accept the 
Government contractor-issued travel charge card;
    (b) Laundry/dry cleaning;
    (c) Parking;
    (d) Local transportation system;
    (e) Taxi;
    (f) Tips;
    (g) Meals (when use of the card is impractical, e.g., group meals 
or the Government contractor-issued travel charge card is not 
accepted);
    (h) Phone calls (when a Government calling card is available for 
use in accordance with agency policy);
    (i) An employee who has an application pending for the travel 
charge card;
    (j) Individuals traveling on invitational travel; and
    (k) New appointees.


Sec. 301-51.3  Who in my agency has the authority to grant exemptions 
from the mandatory use of the Government contractor-issued travel 
charge card?

    The head of your agency or his/her designee(s) has (have) the 
authority to grant exemptions from the mandatory use of the Government 
contractor-issued travel charge card.


Sec. 301-51.4  If my agency grants an exemption, does that prevent me 
from using the card on a voluntary basis?

    No, an exemption from use would not prevent you from using the 
Government contractor-issued travel charge card on a voluntary basis in 
accordance with your agency's policy.


Sec. 301-51.5  How may I pay for official travel expenses if I receive 
an exemption from use of the Government contractor-issued travel charge 
card?

    If you receive an exemption from use of the Government contractor-
issued travel charge card, your agency may authorize one or a 
combination of the following methods of payment:
    (a) Personal funds, including cash or personal charge card;
    (b) Travel advances; or
    (c) Government Transportation Request (GTR).

    Note to Sec. 301-51.5:  City pair contractors are not required 
to accept payment by the methods in paragraph (a) or (b) of this 
section.

Sec. 301-51.6  May I use the Government contractor-issued travel charge 
card for purposes other than those associated with official travel?

    No, the Government contractor-issued travel charge card may be used 
only for official travel related expenses.


Sec. 301-51.7  What are the consequences of using the Government 
contractor-issued travel charge card for non-official travel purposes?

    If you use the Government contractor-issued travel charge card for 
purposes other than official travel, your agency may take appropriate 
disciplinary action.

PART 301-52--CLAIMING REIMBURSEMENT

    3. The authority citation for 41 CFR part 301-52 is revised to read 
as follows:

    Authority:  5 U.S.C. 5707; 40 U.S.C. 486(c); Sec. 2., Pub. L. 
105-264, 112 Stat. 2350 (5 U.S.C. 5701 note).

    4. Part 301-52 is amended by revising Secs. 301-52.17 through 301-
52.21 and adding Secs. 301-52.22 through 301-52.24 to read as follows:


Sec. 301-52.17  Within how many calendar days after I submit a proper 
travel claim must my agency reimburse my allowable expenses?

    Your agency must reimburse you within 30-calendar days after you 
submit a proper travel claim to your approving official. Your agency 
must ensure that it uses a satisfactory recordkeeping system to track 
submission of travel claims. For example, travel claims submitted by 
mail, in accordance with your agency's policy, could be annotated with 
the time and date of receipt by the agency. Your agency could consider 
travel claims electronically submitted to the approving official as 
submitted on the date indicated on an email log, or on the next 
business day if submitted after normal working hours.


Sec. 301-52.18  Within how many calendar days after I submit a travel 
claim must my agency notify me of any error that would prevent payment 
within 30 calendar days after submission?

    Your agency must notify you within seven calendar days after you 
submit your travel claim of any error that would prevent payment within 
30 calendar days after submission and must provide the reason(s) why 
your travel claim is not proper.

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Sec. 301-52.19  Will I receive a late payment fee if my agency fails to 
reimburse me within 30 calendar days after I submit a proper travel 
claim?

    Yes, your agency must pay you a late payment fee, in addition to 
the amount due you, for any proper travel claim not reimbursed within 
30 calendar days of your submission of it to the approving official.


Sec. 301-52.20  How are late payment fees calculated?

    Your agency must calculate late payment fees using the prevailing 
Prompt Payment Act Interest Rate beginning on the 31st day after 
submission of a proper travel claim and ending on the date on which 
payment is made. In addition to this fee, your agency must also pay you 
an amount equivalent to any late payment charge that the card 
contractor would have been able to charge you had you not paid the 
bill.


Sec. 301-52.21  Is there a minimum amount the late payment fee must 
exceed before my agency will pay it to me?

    Yes, a late payment fee will only be paid when the computed late 
payment fee is $1.00 or greater.


Sec. 301-52.22  Will any late payment fees I receive be reported as 
wages on a Form W-2?

    No, the Internal Revenue Service (IRS) has determined that the late 
payment fee is in the nature of interest (compensation for the use of 
money). Your agency will report payments in accordance with IRS 
guidelines.


Sec. 301-52.23  Is the additional fee, which is equal to any late 
payment charge that the card contractor would have been able to charge 
had I not paid the bill, considered income?

    Yes, your agency will report this payment as additional wages on 
Form W-2.


Sec. 301-52.24  Does mandatory use of the Government contractor-issued 
travel charge card change my obligation to pay my travel card bill by 
the due date?

    No, mandatory use of the Government contractor-issued travel charge 
card does not relieve you of your obligation to pay your bill in 
accordance with your cardholder agreement.

    5. Part 301-54 is revised to read as follows:

PART 301-54--COLLECTION OF UNDISPUTED DELINQUENT AMOUNTS OWED TO 
THE CONTRACTOR ISSUING THE INDIVIDUALLY BILLED TRAVEL CHARGE CARD

Subpart A--General Rules
Sec.
301-54.1  Is my agency allowed to collect undisputed delinquent 
amounts that I owe to a Government travel charge card contractor?
301-54.2  What is disposable pay?
Subpart B--Policies and Procedures
301-54.100  Are there any due process requirements with which my 
agency must comply before collecting undisputed delinquent amounts 
on behalf of the charge card contractor?
301-54.101  Can my agency initiate collection of undisputed 
delinquent amounts if it has not reimbursed me for amounts 
reimbursable under the applicable travel regulations?
301-54.102  What is the maximum amount my agency may deduct from my 
disposable pay?

    Authority:  5 U.S.C. 5707; 40 U.S.C. 486(c); Sec. 2, Pub. L. 
105-264, 112 Stat. 2350 (5 U.S.C. 5701 note).

Subpart A--General Rules

    Note to subpart A:  Use of pronouns ``I'', ``you'', and their 
variants throughout this subpart refers to the employee.

Sec. 301-54.1  Is my agency allowed to collect undisputed delinquent 
amounts that I owe to a Government travel charge card contractor?

    Yes, upon written request from the contractor, your agency may 
collect, from your disposable pay, any undisputed delinquent amounts 
that you owe to a Government travel charge card contractor.


Sec. 301-54.2  What is disposable pay?

    Disposable pay is your compensation remaining after the deduction 
from your earnings of any amounts required by law to be withheld. These 
deductions do not include discretionary deductions such as health 
insurance, savings bonds, charitable contributions, etc. Deductions may 
be made from any type of pay you receive from your agency, e.g., basic 
pay, special pay, retirement pay, or incentive pay.

Subpart B--Policies and Procedures

    Note to subpart B:
     Use of pronouns ``I'', ``you'', and their variants throughout this 
subpart refers to the employee.

Sec. 301-54.100  Are there any due process requirements with which my 
agency must comply before collecting undisputed delinquent amounts on 
behalf of the charge card contractor?

    Yes, your agency must:
    (a) Provide you with written notice of the type and amount of the 
claim, the intention to collect the claim by deduction from your 
disposable pay, and an explanation of your rights as a debtor;
    (b) Give you the opportunity to inspect and copy their records 
related to the claim;
    (c) Allow an opportunity for a review within the agency of its 
decision to collect the amount; and
    (d) Provide you with an opportunity to make a written agreement 
with the contractor to repay the delinquent amount of the claim.


Sec. 301-54.101  Can my agency initiate collection of undisputed 
delinquent amounts if it has not reimbursed me for amounts reimbursable 
under the applicable travel regulations?

    No, your agency may only collect undisputed delinquent amounts for 
which you have been reimbursed under the applicable travel regulations. 
However, if you have not submitted a proper travel claim within the 
timeframe requirements of Sec. 301-52.7 of this chapter, and there are 
no extenuating circumstances, your agency may collect the undisputed 
delinquent amounts based on the amounts charged on the travel charge 
card.


Sec. 301-54.102  What is the maximum amount my agency may deduct from 
my disposable pay?

    As set forth in Public Law 105-264, 112 Stat. 2350, October 19, 
1998, the maximum amount your agency may deduct from your disposable 
pay is 15 percent a pay period, unless you agree in writing to a larger 
percentage.

PART 301-70--INTERNAL POLICY AND PROCEDURE REQUIREMENTS

    6. The authority citation for 41 CFR part 301-70 is revised to read 
as follows:

    Authority:  5 U.S.C. 5707; 40 U.S.C. 486(c); Sec. 2, Pub. L. 
105-264, 112 Stat. 2350 (5 U.S.C. 5701 note).

    7. Part 301-70 is amended by revising Subpart H to read as follows:

Subpart H--Policies and Procedures Relating to Mandatory Use of the 
Government Contractor-Issued Travel Charge Card for Official Travel

Sec.
301-70.700   Must our employees use a Government contractor-issued 
travel charge card for official travel expenses?
301-70.701   Who has the authority to grant exemptions to mandatory 
use of Government contractor-issued travel charge card for official 
travel?
301-70.702   Must we notify the Administrator of General Services 
when we grant an exemption?
301-70.703   If we grant an exemption, does that prevent the 
employee from using the card on a voluntary basis?
301-70.704   What expenses and/or classes of employees are exempt 
from the

[[Page 3057]]

mandatory use of the Government contractor-issued travel charge 
card?
301-70.705   What methods of payment for official travel expenses 
may we authorize when an exemption from use of the Government 
contractor-issued travel charge card is granted?
301-70.706   May an employee use the Government contractor-issued 
travel charge card for purposes other than those associated with 
official travel?
301-70.707   What are the consequences of using the Government 
contractor-issued travel charge card for non-official travel 
purposes?

Subpart H--Policies and Procedures Relating to Mandatory Use of the 
Government Contractor-Issued Travel Charge Card for Official Travel


Sec. 301-70.700  Must our employees use a Government contractor-issued 
travel charge card for official travel expenses?

    Yes, your employees must use a Government contractor-issued travel 
charge card for official travel expenses unless:
    (a) A vendor does not accept the travel charge card;
    (b) The Administrator of General Services has granted an exemption. 
(see Sec. 301-70.704); or
    (c) Your agency head or his/her designee has granted an exemption.


Sec. 301-70.701  Who has the authority to grant exemptions to mandatory 
use of Government contractor-issued travel charge card for official 
travel?

    (a) The Administrator of General Services will exempt any payment, 
person, type or class of payments, or type or class of personnel in any 
case in which--
    (1) It is in the best interest of the United States to do so;
    (2) Payment through a travel charge card is impractical or imposes 
unreasonable burdens or costs on Federal employees or Federal agencies; 
or
    (3) The Secretary of Defense or the Secretary of Transportation 
(for the Coast Guard) requests an exemption for the members of their 
uniformed services.
    (b) The head of a Federal agency or his/her designee(s) may exempt 
any payment, person, type or class of payments, or type or class of 
agency personnel if the exemption is determined to be necessary in the 
interest of the agency.


Sec. 301-70.702  Must we notify the Administrator of General Services 
when we grant an exemption?

    Yes, you must notify the Administrator of General Services 
(Attention: MTT), 1800 F Street, NW, Washington, DC 20405, in writing 
within 30 days after granting the exemption, stating the reasons for 
the exemption.


Sec. 301-70.703  If we grant an exemption, does that prevent the 
employee from using the card on a voluntary basis?

    No, an exemption from use would not prevent the employee from using 
the Government contractor-issued travel charge card for official travel 
expenses on a voluntary basis in accordance with your policies.


Sec. 301-70.704  What expenses and/or classes of employees are exempt 
from the mandatory use of the Government contractor-issued travel 
charge card?

    The Administrator of General Services exempts the following from 
the mandatory use of the Government contractor-issued travel charge 
card:
    (a) Expenses incurred at a vendor that does not accept the 
Government contractor-issued travel charge card;
    (b) Laundry/dry cleaning;
    (c) Parking;
    (d) Local transportation system;
    (e) Taxi;
    (f) Tips;
    (g) Meals (only when use of the card is impractical, i.e., group 
meals or the Government contractor-issued travel charge card is not 
accepted);
    (h) Phone calls (when a Government calling card is available for 
use in accordance with agency policy);
    (i) An employee who has an application pending for the travel 
charge card;
    (j) Individuals traveling on invitational travel; and
    (k) New appointees.


Sec. 301-70.705  What methods of payment for official travel expenses 
may we authorize when an exemption from use of the Government 
contractor-issued travel charge card is granted?

    When you grant an exemption from use of the Government contractor-
issued travel charge card, you may authorize one or a combination of 
the following methods of payment:
    (a) Personal funds, including cash or personal charge card;
    (b) Travel advances; or
    (c) Government Transportation Request (GTR).

    Note to Sec. 301-70.705:  City pair contractors are not required 
to accept payment by the methods in paragraph (a) or (b) of this 
section.

Sec. 301-70.706  May an employee use the Government contractor-issued 
travel charge card for purposes other than those associated with 
official travel?

    No, the Government contractor-issued travel charge card may be used 
only for official travel related expenses.


Sec. 301-70.707  What are the consequences of using the Government 
contractor-issued travel charge card for non-official travel purposes?

    If one of your employees uses the Government contractor-issued 
travel charge card for purposes other than official travel, you may 
take appropriate disciplinary action.

PART 301-71--AGENCY TRAVEL ACCOUNTABILITY REQUIREMENTS

    8. The authority citation for 41 CFR part 301-71 is revised to read 
as follows:

    Authority:  5 U.S.C. 5707; 40 U.S.C. 486(c); Sec. 2, Pub. L. 
105-264, 112 Stat. 2350 (5 U.S.C. 5701 note).

    9. Part 301-71 is amended by revising Sec. 301-71.204 and 
Secs. 301-71.208 through 301-71.211 and by adding Secs. 301-71.212 
through 301-71.214 to Subpart C to read as follows:


Sec. 301-71.204  Within how many calendar days after the submission of 
a proper travel claim must we reimburse the employee's allowable 
expenses?

    You must reimburse the employee within 30 calendar days after the 
employee submits a proper travel claim to the approving official. You 
must use a satisfactory recordkeeping system to track submission of 
travel claims. For example, travel claims submitted by mail, in 
accordance with agency policy, could be annotated with date of receipt 
by the agency. You could consider travel claims electronically 
submitted to the approving official as submitted on the date indicated 
on an email log, or on the next business day if submitted after normal 
working hours.


Sec. 301-71.208  Within how many calendar days after submission of the 
travel claim must we notify the employee of any errors in the claim?

    You must notify the employee within seven calendar days after the 
employee's submission of the travel claim of any error that would 
prevent payment within 30 calendar days after submission and provide 
the reason(s) why the claim is not proper.


Sec. 301-71.209  Must we pay a late payment fee if we fail to reimburse 
the employee within 30 calendar days after receipt of a proper travel 
claim?

    Yes, a late payment fee, in addition to the amount due the 
employee, must be paid for any proper travel claim not reimbursed 
within 30 calendar days of submission to the approving official.


Sec. 301-71.210  How do we calculate late payment fees?

    Late payment fees are calculated using the prevailing Prompt 
Payment

[[Page 3058]]

Act Interest Rate beginning on the 31st day after submission of a 
proper travel claim and ending on the date on which payment is made. In 
addition to this fee, you must also pay an amount equivalent to any 
late payment charge that the card contractor would have been able to 
charge the employee had the bill not been paid. Payment of this 
additional fee will be based upon the effective date that a late 
payment charge would be allowed under the agreement between you and the 
card contractor.


Sec. 301-71.211  Is there a minimum amount the late payment fee must 
exceed before we will pay it?

    Yes, a late payment fee will only be paid when the computed late 
payment fee is $1.00 or greater.


Sec. 301-71.212  Should we report late payment fees as wages on a Form 
W-2?

    No, the Internal Revenue Service (IRS) has determined that the late 
payment fee is in the nature of interest (compensation for the use of 
money).


Sec. 301-71.213  Is the additional fee, which is the equivalent to any 
late payment charge that the card contractor would have been able to 
charge had the employee not paid the bill, considered income?

    Yes, you must report this late payment fee as additional wages on 
Form W-2.


Sec. 301-71.214  Does mandatory use of the Government contractor-issued 
travel charge card change the employee's obligation to pay his/her 
travel card bill by the due date?

    No, mandatory use of the Government contractor-issued travel charge 
card does not relieve the employee of his/her obligation to honor his/
her cardholder payment agreement.

    10. Part 301-76 is revised to read as follows:

PART 301-76--COLLECTION OF UNDISPUTED DELINQUENT AMOUNTS OWED TO 
THE CONTRACTOR ISSUING THE INDIVIDUALLY BILLED TRAVEL CHARGE CARD

Subpart A--General Rules
Sec.
301-76.1   May we collect undisputed delinquent amounts that an 
employee (including members of the uniformed services) owes to a 
Government travel charge card contractor?
301-76.2   What is disposable pay?
Subpart B--Policies and Procedures
301-76.100   Are there any due process requirements with which we 
must comply before collecting undisputed delinquent amounts on 
behalf of the charge card contractor?
301-76.101   Who is responsible for ensuring that all due process 
and legal requirements have been met?
301-76.102   Can we collect undisputed delinquent amounts if we have 
not reimbursed the employee for amounts reimbursable under 
applicable travel regulations?
301-76.103   What is the maximum amount we may deduct from the 
employee's disposable pay?

    Authority:  5 U.S.C. 5707; 40 U.S.C. 486(c); Sec. 2, Pub. L. 
105-264, 112 Stat. 2350 (5 U.S.C. 5701 note).

Subpart A--General Rules

    Note to Subpart A: Use of pronouns ``we'', ``you'', and their 
variants throughout this part refers to the agency.


Sec. 301-76.1  May we collect undisputed delinquent amounts that an 
employee (including members of the uniformed services) owes to a 
Government travel charge card contractor?

    Yes, upon written request from the contractor and in accordance 
with the procedures specified in Sec. 301-76.100, you may collect 
undisputed amounts owed to a Government travel charge card contractor 
from the delinquent employee's disposable pay. You must promptly 
forward all amounts deducted to the contractor.


Sec. 301-76.2  What is disposable pay?

    Disposable pay is the part of the employee's compensation remaining 
after the deduction of any amounts required by law to be withheld. 
These deductions do not include discretionary deductions such as health 
insurance, savings bonds, charitable contributions, etc. Deductions may 
be made from any type of pay, e.g., basic pay, special pay, retirement 
pay, or incentive pay.

Subpart B--Policies and Procedures

    Note to Subpart B:
     Use of pronouns ``we'', ``you'', and their variants throughout 
this part refers to the agency.

Sec. 301-76.100  Are there any due process requirements with which we 
must comply before collecting undisputed delinquent amounts on behalf 
of the charge card contractor?

    Yes, you must:
    (a) Provide the employee with written notice of the type and amount 
of the claim, the intention to collect the claim by deduction from his/
her disposable pay, and an explanation of his/her rights as a debtor;
    (b) Give the employee the opportunity to inspect and copy your 
records related to the claim;
    (c) Allow an opportunity for a review within the agency of your 
decision to collect the amount; and
    (d) Provide the employee an opportunity to make a written agreement 
with the contractor to repay the delinquent amount.


Sec. 301-76.101  Who is responsible for ensuring that all due process 
and legal requirements have been met?

    You are responsible for ensuring that all requirements have been 
met.


Sec. 301-76.102  Can we collect undisputed delinquent amounts if we 
have not reimbursed the employee for amounts reimbursable under 
applicable travel regulations?

    No, you may only collect undisputed delinquent amounts after you 
have reimbursed the employee under the applicable travel regulations 
and in accordance with a proper travel claim. However, if the employee 
has not submitted a proper travel claim within the timeframe 
requirements of Sec. 301-52.7 of this chapter, and there are no 
extenuating circumstances, you may collect the undisputed delinquent 
amounts.


Sec. 301-76.103  What is the maximum amount we may deduct from the 
employee's disposable pay?

    As set forth in Public Law 105-264, 112 Stat. 2350, October 19, 
1998, the maximum amount you may deduct from the employee's disposable 
pay is 15 percent per pay period, unless the employee consents in 
writing to deduction of a greater percentage.

    Dated: December 20, 1999.
David J. Barram,
Administrator of General Services.
[FR Doc. 00-695 Filed 1-18-00; 8:45 am]
BILLING CODE 6820-34-P