H.R. 930 (ih) To require Federal employees to use Federal travel charge cards for all ...

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        H.R.930

                       One Hundred Fifth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
the twenty-seventh day of January, one thousand nine hundred and ninety-
                                  eight


                                 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Travel and Transportation Reform Act 
of 1998''.

SEC. 2. REQUIRING USE OF THE TRAVEL CHARGE CARD.

    (a) 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. 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.--
        (1) In general.--Section 1113 of the Right to Financial Privacy 
    Act of 1978 (12 U.S.C. 3413) is amended by adding at the end the 
    following new subsection:
    ``(q) Nothing in this title shall apply to the disclosure of any 
financial record or information to a Government authority in 
conjunction with a Federal contractor-issued travel charge card issued 
for official Government travel.''.
        (2) Effective date.--The amendment made by paragraph (1) is 
    effective as of October 1, 1983, and applies to any records created 
    pursuant to the United States Travel and Transportation Payment and 
    Expense Control System or any Federal contractor-issued travel 
    charge card issued for official Government travel.
    (d) Collection of Amounts Owed.--
        (1) In general.--Under regulations issued by the Administrator 
    of General Services and upon written request of a Federal 
    contractor, the head of any Federal agency or a disbursing official 
    of the United States may, on behalf of the contractor, collect by 
    deduction from the amount of pay owed to an employee of the agency 
    any amount of funds the employee owes to the contractor as a result 
    of delinquencies not disputed by the employee on a travel charge 
    card issued for payment of expenses incurred in connection with 
    official Government travel. The amount deducted from the pay owed 
    to an employee with respect to a pay period may not exceed 15 
    percent of the disposable pay of the employee for that pay period, 
    except that a greater percentage may be deducted upon the written 
    consent of the employee.
        (2) Due process protections.--Collection under this subsection 
    shall be carried out in accordance with procedures substantially 
    equivalent to the procedures required under section 3716(a) of 
    title 31, United States Code.
        (3) Definitions.--For the purpose of this subsection:
            (A) Agency.--The term ``agency'' has the meaning that term 
        has under section 101 of title 31, United States Code.
            (B) Employee.--The term ``employee'' means an individual 
        employed in or under an agency, including a member of any of 
        the uniformed services. For purposes of this subsection, a 
        member of one of the uniformed services is an employee of that 
        uniformed service.
            (C) Member; uniformed service.--Each of the terms 
        ``member'' and ``uniformed service'' has the meaning that term 
        has in section 101 of title 37, United States Code.
    (e) 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;
        (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) 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) 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.'';
        (B) in subsection (c)(1), by inserting after ``deductions'' the 
    following: ``and the Administrator of General Services has 
    determined that verification by a prepayment audit conducted 
    pursuant to section 3726(a) of this title for a particular mode or 
    modes of transportation, or for an agency or subagency, will not 
    adequately protect the interests of the Government''; and
        (C) in subsection (c)(2), by inserting after ``agreement'' the 
    following: ``and the Administrator of General Services has 
    determined that verification by a prepayment audit conducted 
    pursuant to section 3726(a) of this title for a particular mode or 
    modes of transportation, or for an agency or subagency, will not 
    adequately protect the interests of the Government''.
    (3) Section 3726 of title 31, United States Code, is amended--
        (A) by amending subsection (a) to read as follows:
    ``(a)(1) Each agency that receives a bill from a carrier or freight 
forwarder for transporting an individual or property for the United 
States Government shall verify its correctness (to include 
transportation rates, freight classifications, or proper combinations 
thereof), using prepayment audit, prior to payment in accordance with 
the requirements of this section and regulations prescribed by the 
Administrator of General Services.
    ``(2) The Administrator of General Services may exempt bills, a 
particular mode or modes of transportation, or an agency or subagency 
from a prepayment audit and verification and in lieu thereof require a 
postpayment audit, based on cost effectiveness, public interest, or 
other factors the Administrator considers appropriate.
    ``(3) Expenses for prepayment audits shall be funded by the 
agency's appropriations used for the transportation services.
    ``(4) The audit authority provided to agencies by this section is 
subject to oversight by the Administrator.'';
        (B) by redesignating subsections (b), (c), (d), (e), (f), and 
    (g) 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: ``This reporting requirement 
    expires December 31, 1998.'';
        (E) in subsection (i)(1), as so redesignated, by striking 
    ``subsection (a)'' and inserting ``subsection (c)''; and
        (F) by adding after subsection (i), as so redesignated, the 
    following new subsection:
    ``(j) The Administrator of General Services may provide 
transportation audit and related technical assistance services, on a 
reimbursable basis, to any other agency. Such reimbursements may be 
credited to the appropriate revolving fund or appropriation from which 
the expenses were incurred.''.
    (b) Effective Date.--The amendments made by this section shall 
become effective 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) Effective Date.--This section shall be effective as of January 
1, 1993.

SEC. 5. AUTHORITY FOR TEST PROGRAMS.

    (a) Travel Expenses Test Programs.--Subchapter I of chapter 57 of 
title 5, United States Code, is amended by adding at the end the 
following new section:

``Sec. 5710. Authority for travel expenses test programs

    ``(a)(1) Notwithstanding any other provision of this subchapter, 
under a test program which the Administrator of General Services 
determines to be in the interest of the Government and approves, an 
agency may pay through the proper disbursing official for a period not 
to exceed 24 months any necessary travel expenses in lieu of any 
payment otherwise authorized or required under this subchapter. An 
agency shall include in any request to the Administrator for approval 
of such a test program an analysis of the expected costs and benefits 
and a set of criteria for evaluating the effectiveness of the program.
    ``(2) Any test program conducted under this section shall be 
designed to enhance cost savings or other efficiencies that accrue to 
the Government.
    ``(3) Nothing in this section is intended to limit the authority of 
any agency to conduct test programs.
    ``(b) The Administrator shall transmit a copy of any test program 
approved by the Administrator under this section to the appropriate 
committees of the Congress at least 30 days before the effective date 
of the program.

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