[105th Congress Public Law 264]
[From the U.S. Government Printing Office]
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[DOCID: f:publ264.105]
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TRAVEL AND TRANSPORTATION REFORM ACT OF 1998
[[Page 112 STAT. 2350]]
Public Law 105-264
105th Congress
An Act
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. <<NOTE: Oct. 19, 1998 - [H.R. 930]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Travel and
Transportation Reform Act of 1998.>>
SECTION 1. SHORT TITLE. <<NOTE: 5 USC 5701 note.>>
This Act may be cited as the ``Travel and Transportation Reform Act
of 1998''.
SEC. 2. REQUIRING USE OF THE TRAVEL CHARGE CARD. <<NOTE: 5 USC 5701
note.>>
(a) <<NOTE: Regulations.>> In General.--Under regulations issued by
the Administrator of General Services after consultation with the
Secretary of the Treasury, the Administrator shall require that Federal
employees use the travel charge card established pursuant to the United
States Travel and Transportation Payment and Expense Control System, or
any Federal contractor-issued travel charge card, for all payments of
expenses of official Government travel. The Administrator shall exempt
any payment, person, type or class of payments, or type or class of
personnel from any requirement established under the preceding sentence
in any case in which--
(1) it is in the best interest of the United States to
do so;
(2) payment through a travel charge card is impractical or
imposes unreasonable burdens or costs on Federal employees or
Federal agencies; or
(3) the Secretary of Defense or the Secretary of
Transportation (with respect to the Coast Guard) requests an
exemption with respect to the members of the uniformed services.
(b) Agency Exemption.--The head of a Federal agency or the designee
of such head may exempt any payment, person, type or class of payments,
or type or class of agency personnel from subsection (a) if the agency
head or the designee determines the exemption to be necessary in the
interest of the agency. <<NOTE: Deadline. Notification.>> Not later than
30 days after granting such an exemption, the head of such agency or the
designee shall notify the Administrator of General Services in writing
of such exemption stating the reasons for the exemption.
(c) Limitation on Restriction on Disclosure.--
[[Page 112 STAT. 2351]]
(1) In general.--Section 1113 of the Right to Financial
Privacy Act of 1978 (12 U.S.C. 3413) is amended by adding at the
end the following new subsection:
``(q) Nothing in this title shall apply to the disclosure of any
financial record or information to a Government authority in conjunction
with a Federal contractor-issued travel charge card issued for official
Government travel.''.
(2) <<NOTE: Applicability. Records.>> Effective date.--The
amendment made by paragraph (1) is effective as of October 1,
1983, and applies to any records created pursuant to the United
States Travel and Transportation Payment and Expense Control
System or any Federal contractor-issued travel charge card
issued for official Government travel.
(d) Collection of Amounts Owed.--
(1) <<NOTE: Regulations.>> In general.--Under regulations
issued by the Administrator of General Services and upon written
request of a Federal contractor, the head of any Federal agency
or a disbursing official of the United States may, on behalf of
the contractor, collect by deduction from the amount of pay owed
to an employee of the agency any amount of funds the employee
owes to the contractor as a result of delinquencies not disputed
by the employee on a travel charge card issued for payment of
expenses incurred in connection with official Government travel.
The amount deducted from the pay owed to an employee with
respect to a pay period may not exceed 15 percent of the
disposable pay of the employee for that pay period, except that
a greater percentage may be deducted upon the written consent of
the employee.
(2) Due process protections.--Collection under this
subsection shall be carried out in accordance with procedures
substantially equivalent to the procedures required under
section 3716(a) of title 31, United States Code.
(3) Definitions.--For the purpose of this subsection:
(A) Agency.--The term ``agency'' has the meaning
that term has under section 101 of title 31, United
States Code.
(B) Employee.--The term ``employee'' means an
individual employed in or under an agency, including a
member of any of the uniformed services. For purposes of
this subsection, a member of one of the uniformed
services is an employee of that uniformed service.
(C) Member; uniformed service.--Each of the terms
``member'' and ``uniformed service'' has the meaning
that term has in section 101 of title 37, United States
Code.
(e) <<NOTE: Deadline.>> Regulations.--Within 270 days after the date
of the enactment of this Act, the Administrator of General Services
shall promulgate regulations implementing this section, that--
(1) make the use of the travel charge card established
pursuant to the United States Travel and Transportation System
and Expense Control System, or any Federal contractor-issued
travel charge card, mandatory for all payments of expenses of
official Government travel pursuant to this section;
(2) specify the procedures for effecting under subsection
(d) a deduction from pay owed to an employee, and ensure that
the due process protections provided to employees under such
procedures are no less than the protections provided to
employees pursuant to section 3716 of title 31, United States
Code;
[[Page 112 STAT. 2352]]
(3) provide that any deduction under subsection (d) from pay
owed to an employee may occur only after reimbursement of the
employee for the expenses of Government travel with respect to
which the deduction is made; and
(4) require agencies to promptly reimburse employees for
expenses charged on a travel charge card pursuant to this
section, and by no later than 30 days after the submission of a
claim for reimbursement.
(f ) Reports.--
(1) In general.--The Administrator of General Services shall
submit 2 reports to the Congress on agency compliance with this
section and regulations that have been issued under this
section.
(2) <<NOTE: Deadlines.>> Timing.--The first report under
this subsection shall be submitted before the end of the 180-day
period beginning on the date of the enactment of this Act, and
the second report shall be submitted after that period and
before the end of the 540-day period beginning on that date of
enactment.
(3) Preparation.--Each report shall be based on a sampling
survey of agencies that expended more than $5,000,000 during the
previous fiscal year on travel and transportation payments,
including payments for employee relocation. The head of an
agency shall provide to the Administrator the necessary
information in a format prescribed by the Administrator and
approved by the Director of the Office of Management and Budget.
(g) <<NOTE: Regulations.>> Reimbursement of Travel Expenses.--In
accordance with regulations prescribed by the Administrator of General
Services, the head of an agency shall ensure that the agency reimburses
an employee who submits a proper voucher for allowable travel expenses
in accordance with applicable travel regulations within 30 days after
submission of the voucher. If an agency fails to reimburse an employee
who has submitted a proper voucher within 30 days after submission of
the voucher, the agency shall pay the employee a late payment fee as
prescribed by the Administrator.
SEC. 3. PREPAYMENT AUDITS OF TRANSPORTATION EXPENSES.
(a) In General.--(1) Section 3322 of title 31, United States Code,
is amended in subsection (c) by inserting after ``classifications'' the
following: ``if the Administrator of General Services has determined
that verification by a prepayment audit conducted pursuant to section
3726(a) of this title for a particular mode or modes of transportation,
or for an agency or subagency, will not adequately protect the interests
of the Government''.
(2) Section 3528 of title 31, United States Code, is amended--
(A) in subsection (a) by striking ``and'' after the
semicolon at the end of paragraph (3), by striking the period at
the end of subsection (a)(4)(C) and inserting ``; and'', and by
adding at the end the following new paragraph:
``(5) verifying transportation rates, freight
classifications, and other information provided on a Government
bill of lading or transportation request, unless the
Administrator of General Services has determined that
verification by a prepayment audit conducted pursuant to section
3726(a) of this title for a particular mode or modes of
transportation, or for an agency or subagency, will not
adequately protect the interests of the Government.'';
[[Page 112 STAT. 2353]]
(B) in subsection (c)(1), by inserting after ``deductions''
the following: ``and the Administrator of General Services has
determined that verification by a prepayment audit conducted
pursuant to section 3726(a) of this title for a particular mode
or modes of transportation, or for an agency or subagency, will
not adequately protect the interests of the Government''; and
(C) in subsection (c)(2), by inserting after ``agreement''
the following: ``and the Administrator of General Services has
determined that verification by a prepayment audit conducted
pursuant to section 3726(a) of this title for a particular mode
or modes of transportation, or for an agency or subagency, will
not adequately protect the interests of the Government''.
(3) Section 3726 of title 31, United States Code, is amended--
(A) by amending subsection (a) to read as follows:
``(a)(1) <<NOTE: Regulations.>> Each agency that receives a bill
from a carrier or freight forwarder for transporting an individual or
property for the United States Government shall verify its correctness
(to include transportation rates, freight classifications, or proper
combinations thereof ), using prepayment audit, prior to payment in
accordance with the requirements of this section and regulations
prescribed by the Administrator of General Services.
``(2) The Administrator of General Services may exempt bills, a
particular mode or modes of transportation, or an agency or subagency
from a prepayment audit and verification and in lieu thereof require a
postpayment audit, based on cost effectiveness, public interest, or
other factors the Administrator considers appropriate.
``(3) Expenses for prepayment audits shall be funded by the agency's
appropriations used for the transportation services.
``(4) The audit authority provided to agencies by this section is
subject to oversight by the Administrator.'';
(B) by redesignating subsections (b), (c), (d), (e), (f ),
and (g) as subsections (d), (e), (f ), (g), (h), and (i),
respectively;
(C) by inserting after subsection (a) the following new
subsections:
``(b) The Administrator may conduct pre- or post-payment audits of
transportation bills of any Federal agency. The number and types of
bills audited shall be based on the Administrator's judgment.
``(c)(1) The Administrator shall adjudicate transportation claims
which cannot be resolved by the agency procuring the transportation
services, or the carrier or freight-forwarder presenting the bill.
``(2) A claim under this section shall be allowed only if it is
received by the Administrator not later than 3 years (excluding time of
war) after the later of the following dates:
``(A) The date of accrual of the claim.
``(B) The date payment for the transportation is made.
``(C) The date a refund for an overpayment for the
transportation is made.
``(D) The date a deduction under subsection (d) of this
section is made.'';
(D) in subsection (f ), as so redesignated, by striking
``subsection (c)'' and inserting ``subsection (e)'', and by
adding at the end the following new sentence:
`` <<NOTE: Expiration date.>> This reporting requirement expires
December 31, 1998.'';
(E) in subsection (i)(1), as so redesignated, by striking
``subsection (a)'' and inserting ``subsection (c)''; and
[[Page 112 STAT. 2354]]
(F) by adding after subsection (i), as so redesignated, the
following new subsection:
``( j) The Administrator of General Services may provide
transportation audit and related technical assistance services, on a
reimbursable basis, to any other agency. Such reimbursements may be
credited to the appropriate revolving fund or appropriation from which
the expenses were incurred.''.
(b) <<NOTE: 31 USC 3322 note.>> Effective Date.--The amendments made
by this section shall become effective 18 months after the date of the
enactment of this Act.
SEC. 4. REIMBURSEMENT FOR TAXES ON MONEY RECEIVED FOR TRAVEL EXPENSES.
(a) In General.--Title 5, United States Code, is amended by
inserting after section 5706b the following new section:
``Sec. 5706c. Reimbursement for taxes incurred on money received for
travel expenses
``(a) Under regulations prescribed pursuant to section 5707 of this
title, the head of an agency or department, or his or her designee, may
use appropriations or other funds available to the agency for
administrative expenses, for the reimbursement of Federal, State, and
local income taxes incurred by an employee of the agency or by an
employee and such employee's spouse (if filing jointly), for any travel
or transportation reimbursement made to an employee for which
reimbursement or an allowance is provided.
``(b) Reimbursements under this section shall include an amount
equal to all income taxes for which the employee and spouse, as the case
may be, would be liable due to the reimbursement for the taxes referred
to in subsection (a). In addition, reimbursements under this section
shall include penalties and interest, for the tax years 1993 and 1994
only, as a result of agencies failing to withhold the appropriate
amounts for tax liabilities of employees affected by the change in the
deductibility of travel expenses made by Public Law 102-486.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 57 of title 5, United States Code, is amended by inserting after
the item relating to section 5706b the following new item:
``5706c. Reimbursement for taxes incurred on money received for travel
expenses.''.
(c) <<NOTE: 5 USC 5706c note.>> Effective Date.--This section shall
be effective as of
January 1, 1993.
SEC. 5. AUTHORITY FOR TEST PROGRAMS.
(a) Travel Expenses Test Programs.--Subchapter I of
chapter 57 of title 5, United States Code, is amended by adding at the
end the following new section:
``Sec. 5710. Authority for travel expenses test programs
``(a)(1) Notwithstanding any other provision of this subchapter,
under a test program which the Administrator of General Services
determines to be in the interest of the Government and approves, an
agency may pay through the proper disbursing official for a period not
to exceed 24 months any necessary travel expenses in lieu of any payment
otherwise authorized or required under this subchapter. An agency shall
include in any request to the Administrator for approval of such a test
program an analysis
[[Page 112 STAT. 2355]]
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) <<NOTE: Reports. Deadline.>> 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) <<NOTE: Expiration date.>> The authority to conduct test
programs under this section shall expire 7 years after the date of the
enactment of the Travel and Transportation Reform Act of 1998.''.
(b) Relocation Expenses Test Programs.--Subchapter II of chapter 57
of title 5, United States Code, is further amended by adding at the end
the following new section:
``Sec. 5739. Authority for relocation expenses test programs
``(a)(1) Notwithstanding any other provision of this subchapter,
under a test program which the Administrator of General Services
determines to be in the interest of the Government and approves, an
agency may pay through the proper disbursing official for a period not
to exceed 24 months any necessary relocation expenses in lieu of any
payment otherwise authorized or required under this subchapter. An
agency shall include in any request to the Administrator for approval of
such a test program an analysis of the expected costs and benefits and a
set of criteria for evaluating the effectiveness of the program.
``(2) Any test program conducted under this section shall be
designed to enhance cost savings or other efficiencies that accrue to
the Government.
``(3) Nothing in this section is intended to limit the authority of
any agency to conduct test programs.
``(b) The Administrator shall transmit a copy of any test
program approved by the Administrator under this section to the
appropriate committees of the Congress at least 30 days before the
effective date of the program.
``(c) <<NOTE: Reports. Deadline.>> 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) <<NOTE: Expiration date.>> The authority to conduct test
programs under this section shall expire 7 years after the date of the
enactment of the Travel and Transportation Reform Act of 1998.''.
(c) Clerical Amendments.--The table of sections for chapter 57 of
title 5, United States Code, is further amended by--
[[Page 112 STAT. 2356]]
(1) inserting after the item relating to section 5709 the
following new item:
``5710. Authority for travel expenses test programs.'';
and
(2) inserting after the item relating to section 5738 the
following new item:
``5739. Authority for relocation expenses test programs.''.
SEC. 6. DEFINITION OF UNITED STATES.
Chapter 57 of title 5, United States Code, is amended--
(1) in section 5721--
(A) in paragraph (4), by striking ``and'' following
the semicolon at the end;
(B) in paragraph (5), by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following new
paragraphs:
``(6) `United States' means the several States, the District
of Columbia, the Commonwealth of Puerto Rico, the Commonwealth
of the Northern Mariana Islands, the territories and possessions
of the United States, and the areas and installations in the
Republic of Panama that are made available to the United States
pursuant to the Panama Canal Treaty of 1977 and related
agreements (as described in section 3(a) of the Panama Canal Act
of 1979); and
``(7) `Foreign Service of the United States' means the
Foreign Service as constituted under the Foreign Service Act of
1980.'';
(2) in section 5722--
(A) in subsection (a)(2), by striking ``outside the
United States'' and inserting ``outside the continental
United States''; and
(B) in subsection (b), by striking ``United States''
each place it appears and inserting ``Government'';
(3) in section 5723(b), by striking ``United States'' each
place it appears and inserting ``Government'';
(4) in section 5724--
(A) in subsection (a)(3), by striking ``, its
territories or possessions'' and all that follows
through ``1979''; and
(B) in subsection (i), by striking ``United States''
each place it appears in the last sentence and inserting
``Government'';
(5) in section 5724a, by striking subsection ( j);
(6) in section 5725(a), by striking ``United States'' and
inserting ``Government'';
(7) in section 5727(d), by striking ``United States'' and
inserting ``continental United States'';
(8) in section 5728(b), by striking ``an employee of the
United States'' and inserting ``an employee of the Government'';
(9) in section 5729, by striking ``or its territories or
possessions'' each place it appears;
(10) in section 5731(b), by striking ``United States'' and
inserting ``Government''; and
(11) in section 5732, by striking ``United States'' and
inserting ``Government''.
[[Page 112 STAT. 2357]]
SEC. 7. TECHNICAL CORRECTIONS TO THE FEDERAL EMPLOYEE TRAVEL REFORM ACT
OF 1996.
Section 5724a of title 5, United States Code, is amended--
(1) in subsections (a) and (d)(1) and (2), by striking ``An
agency shall pay'' each place it appears and inserting ``Under
regulations prescribed under section 5738, an agency shall
pay'';
(2) in subsections (b)(1), (c)(1), (d)(8), and (e), by
striking ``An agency may pay'' each place it appears and
inserting ``Under regulations prescribed under section 5738, an
agency may pay'';
(3) by amending subsection (b)(1)(B)(ii) to read as follows:
``(ii) an amount for subsistence expenses, that may
not exceed a maximum amount determined by the
Administrator of General Services.'';
(4) in subsection (c)(1)(B), by striking ``an amount for
subsistence expenses'' and inserting ``an amount for subsistence
expenses, that may not exceed a maximum amount determined by the
Administrator of General Services,'';
(5) in subsection (d)(2)(A), by striking ``for the sale''
and inserting ``of the sale'';
(6) in subsection (d)(2)(B), by striking ``for the
purchase'' and inserting ``of the purchase'';
(7) in subsection (d)(8), by striking ``paragraph (2) or
(3)'' and inserting ``paragraph (1) or (2)'';
(8) in subsection (f )(1), by striking ``Subject to
paragraph (2),'' and inserting ``Under regulations prescribed
under section 5738 and subject to paragraph (2),''; and
(9) by striking subsection (i).
Approved October 19, 1998.
LEGISLATIVE HISTORY--H.R. 930:
---------------------------------------------------------------------------
SENATE REPORTS: No. 105-295 (Comm. on Governmental Affairs).
CONGRESSIONAL RECORD:
Vol. 143 (1997):
Apr. 16, considered and passed
House.
Vol. 144 (1998):
Sept. 1, considered and passed
Senate, amended.
Oct. 5, House concurred in Senate
amendments.
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