[Federal Register: November 23, 2004 (Volume 69, Number 225)]
[Proposed Rules]               
[Page 68111-68119]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23no04-23]                         

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GENERAL SERVICES ADMINISTRATION

41 CFR Parts 300-3, 302-2, 302-3, 302-4, 302-5, 302-6, 302-7, 302-
9, 302-11, and 302-15

[FTR Case 2003-309]
RIN 3090-AH91

 
Federal Travel Regulation; Relocation Allowances

AGENCY: Office of Governmentwide Policy, General Services 
Administration (GSA).

ACTION: Proposed rule.

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SUMMARY: The General Services Administration (GSA) Office of 
Governmentwide Policy (OGP) continually reviews and adjusts policies as 
a part of its ongoing mission to provide policy assistance to the 
Government agencies subject to the Federal Travel Regulation (FTR). 
Accordingly, GSA created the Relocation Best Practices Committee (RBPC) 
to examine Government relocation policy. The RBPC consists of 
Government as well as private sector relocation experts and produced a 
complete package of recommendations affecting the statutes and 
regulations governing relocation. The following proposed FTR changes 
are the result of recommendations from the RBPC from benchmarking 
against private industry, and from GSA, representing Governmentwide 
policy interests. The proposed changes are intended to keep Government 
relocation practices in line with current relocation trends and allow 
for better management of the Government relocation programs and costs.

DATES: Comments must be received on or before January 24, 2005.

ADDRESSES: Submit comments identified by FTR case 2003-309 by any of 
the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 

Follow the instructions for submitting comments.
     Agency Web Site: http://www.gsa.gov/ftr. Click on the FTR 

Case number to submit comments.
     E-mail: ftrcase.2003-309@gsa.gov. Include FTR case 2003-
309 in the subject line of the message.
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat (V), 1800 F Street, NW., Room 4035, ATTN: Laurie Duarte, 
Washington, DC 20405.
    Instructions: Please submit comments only and cite FTR case 2003-
309 in all correspondence related to this case. All comments received 
will be posted without change to http://www.gsa.gov/ftr, including any 

personal information provided.

FOR FURTHER INFORMATION CONTACT: The Regulatory Secretariat, Room 4035, 
GS Building, Washington, DC, 20405, (202) 208-7312, for information 
pertaining to status or publication schedules. For clarification of 
content, contact Ed Davis, Program Analyst (Team Leader), Office of 
Governmentwide Policy, Travel Management Policy, at (202) 208-7638. 
Please cite FTR case 2003-309.

SUPPLEMENTARY INFORMATION:

A. Background

    The General Services Administration (GSA), Office of Governmentwide 
Policy (OGP), reviews the regulations under its purview to address 
current Government relocation needs and incorporate private industry 
policies and best practices, where appropriate. Relocation is an area 
that continuously changes. Parts of the relocation regulation, such as 
the storage time and temporary quarters allowance time should not stand 
alone but be considered in relation to each other. Changes such as 
these need to be made as part of a new comprehensive relocation 
regulation.
    Much of private industry uses lump sum relocation payments for all 
relocation expenses except real estate expenses. Thus, temporary 
quarters, miscellaneous expenses, and other payments have a small one-
time administrative cost and do not need to be reconciled in a post-
payment audit. The administrative savings and efficiency improvements 
of such systems are clear.
    Private industry spends less time on its relocation packages 
because as a rule they are tiered, more flexible to handle exceptions, 
and relocation expenses rarely extend beyond one year because there are 
no extensions. The focus is on getting the transferee settled at the 
new location as fast as possible in permanent quarters. The main lesson 
that the Government can learn from benchmarking against private 
industry is that expediency is important. Currently, the Government 
permits Federal employees to voucher items from a move up to 4 years 
after the move (2 years to complete a relocation plus a two year 
extension). This is a drain on Federal accounting systems as monies 
must remain allocated to cover transactions.
    The Travel Management Policy Division of OGP examined the issues 
facing agencies and employees in a relocation. Through benchmarking 
sessions with private industry as well as a RBPC consisting of many 
agencies' relocation policy experts, the current proposed rules 
emerged.

B. Proposed Changes

    This proposed rule--
     Amends section 300-3.1 to add the terms and definitions 
for ``accompanied baggage'' and ``unaccompanied air baggage'' and 
change the definitions for ``Household Goods (HHG)'' and ``Non-foreign 
area'';
     Amends sections 302-2.8, 302-2.9, 302-2.10, 302-2.11, and 
302-2.110 to reduce the length of time to complete a relocation from 
two years to one year;
     Further amends sections 302-2.11 and 302-2.110 to reduce 
the length of time for relocation extensions from two years to one 
year;
     Adds two new sections to part 302-2, subpart A, and amends 
section 302-2.100 to require disclosure statements so that the 
Government will not pay for relocation expenses that are paid by 
another Government or private source;
     Adds seven new sections to part 302-2, subpart B, to 
define relocation programs, relocation payment systems, and relocation 
management reporting systems;
     Adds two new sections to part 302-3, subpart D, relating 
to separation travel timing and extensions;
     Revises section 302-4.300 to reduce the mileage rate for 
relocation to be in

[[Page 68112]]

line with the Internal Revenue Service (IRS) relocation reimbursement 
rates;
     Amends section 302-5.11 to reduce the maximum allowable 
number of days for a househunting trip from 10 to 8 calendar days, to 
be in line with industry practices;
     Amends sections 302-5.13, 302-5.15, 302-5.16, 302-5.18, 
302-5.101, 302-5.103 (to be redesignated as section 302-5.104), 302-
6.11, 302-6.12, 302-6.301, and 302-6.304 by replacing the term ``fixed 
amount'' with the term ``lump sum'';
     Revises section 302-5.14;
     Adds a new section to part 302-5, subpart B, to establish 
a threshold for determining which mode of transportation (POV or common 
carrier) should be authorized for more cost efficient househunting 
trips;
     Revises part 302-6, subpart C, to encourage the use of 
lump sum payments because of the administrative efficiency as well as 
the potential for cost savings;
     Revises section 302-6.304 to explain the factors to 
consider when deciding to offer lump sum payments;
     Adds two new sections to part 302-6, subpart D, regarding 
temporary quarters subsistence expenses (TQSE) payments requiring 
employees who select lump sum TQSE reimbursement to certify that TQSE 
expenses will be incurred, and that payment to the employee of TQSE 
lump will be made prior to occupancy of temporary quarters (TQ);
     Revises section 302-7.2 to clarify that the definition of 
18,000 pounds net weight of household goods does not include packing 
materials;
     Revises section 302-7.4 to include an agency option for 
unaccompanied air baggage (UAB) as a part of the household goods 
allowance;
     Adds a new section 302-7.8 to clarify where HHG may be 
temporarily stored;
     Revises and redesignates section 302-7.9 limiting the 
maximum number of days of temporary storage of household goods to a 
total of 150 and requiring that the number of days allowed parallel the 
number of days allowed for TQSE;
     Revises the new section 302-7.10 to reduce the initial 
temporary storage period from 90 to 60 days;
     Revises newly designated section 302-7.21 specifying the 
responsibility for payment of weight additives;
     Redesignates part 302-7, subpart D, as subpart E (Agency 
Responsibilities) and adds a new subpart D (Baggage Allowance) to 
incorporate policies for including unaccompanied air baggage in the HHG 
weight allowance for moves between CONUS and OCONUS;
     Adds another condition to section 302-9.301 that agencies 
must consider before authorizing transportation of a privately owned 
vehicle (POV) within CONUS to assure that agencies are not domestically 
transporting POV's when the cost of transportation is more than the 
value of the POV;
     Adds a new section to part 302-9, subpart F, to limit the 
number of POV's that may be transported at Government expense to two;
     Amends and redesignates sections 302-9.504 and 302-9.505 
to insure that agencies are not transporting a POV to a post of duty 
when the cost of transportation is more than the value of the POV and 
limits agency shipment of a POV to 600 miles or more;
     Amends section 302-11.2 to follow guidelines in Internal 
Revenue Service Publication 521, Moving Expenses, for relocation by 
requiring the commute to new job location via commonly traveled routes 
from the old residence increase by at least 50 miles;
     Revises section 302-11.21 to reduce the time limit for 
submitting claims for residence transactions from two years to one 
year;
     Revises section 302-11.22 to reduce the time limit for 
extensions to submit claims for residence transactions from two years 
to one year;
     Amends section 302-11.200 by revising the introductory 
paragraph to clarify that reimbursement of residence transaction 
expenses is limited to amounts customarily charged where the residences 
are located;
     Revises paragraph 302-15.2 to correct grammatical error; 
and
     Revises paragraph 302-15.70 to allow for direct payment of 
property management service fees to the Government employee, when 
appropriate.
    Because of the insertion of several new sections in the existing 
regulation, some existing sections will be redesignated and therefore, 
several cross-references will also be changed. This proposed rule makes 
those changes.

C. Executive Order 12866

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

D. Regulatory Flexibility Act

    This proposed rule is not required to be published in the Federal 
Register for notice and comment; therefore, the Regulatory Flexibility 
Act, 5 U.S.C. 601, et seq., does not apply.

E. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because this proposed 
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 under 44 U.S.C. 501 et seq.

F. Small Business Regulatory Enforcement Fairness Act

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

List of Subjects in 41 CFR Parts 300-3, 302-2, 302-3, 302-4, 302-5, 
302-6, 302-7, 302-9, 302-11 and 302-15

    Government employees, Travel and transportation expenses.

    Dated: November 2, 2004.
G. Martin Wagner,
Associate Administrator, Office of Governmentwide Policy.
    For the reasons set out in this preamble, 41 CFR parts 300-3, 302-
2, 302-3, 302-4, 302-5, 302-6, 302-7, 302-9, 302-11, and 302-15 are 
proposed to be amended as set forth below:

PART 300-3--GLOSSARY OF TERMS

    1. The authority citation for 41 CFR part 300-3 is revised to read 
as follows:

    Authority: 5 U.S.C. 5707; 5 U.S.C. 5738; 5 U.S.C. 5741-5742; 20 
U.S.C. 905(a); 31 U.S.C. 1353; 40 U.S.C. 121(c); 49 U.S.C. 40118; 
E.O. 11609, 3 CFR, 1971-1975 Comp., p. 586.
    2. Amend section 300-3.1 by--
    a. Adding, in alphabetical order, the definitions ``Accompanied 
baggage,'' ``Excess baggage,'' and ``Unaccompanied air baggage (UAB)'';
    b. Amending the definition of ``Household Goods (HHG)'' by removing 
``that can fit into a moving van'' from paragraph (l)(v) and adding 
paragraph (l)(vii); and
    c. Amending the definition of ``Non-foreign area'' by removing 
``Commonwealths of Puerto Rico,'' and adding ``Commonwealth of Puerto 
Rico,'' in its place.
    The added text reads as follows:


Sec.  300-3.1   What do the following terms mean?

    Accompanied baggage--Baggage that is carried free of charge for a 
passenger on a common carrier. There are weight and size limitations 
depending on the common carrier. You should check with

[[Page 68113]]

the common carrier you are traveling on for any restrictions.
* * * * *
    Excess baggage--Preauthorized/preapproved baggage carried by a 
passenger on a common carrier that is in excess of the weight and size 
limitation that can be carried for free.
* * * * *
    Household Goods (HHG) * * *
    (1) * * *
    (vii) Unaccompanied air baggage.
* * * * *
    Unaccompanied air baggage (UAB)--Unaccompanied air baggage includes 
personal items and equipment (i.e., pots, pans, light housekeeping 
items, collapsible items (cribs, playpens, baby carriages) and other 
articles required for the care of the family that may be shipped by air 
in accordance with chapter 302 of this subtitle. Household items (i.e., 
refrigerators, washing machines and other major appliances or 
furniture) are not eligible as UAB. UAB is used in connection with 
permanent change of station OCONUS, renewal agreement travel, and long 
term temporary duty assignments of 30 days or more. UAB is subtracted 
from the 18,000 pound net weight household goods allowance.
* * * * *

PART 302-2--EMPLOYEE ELIGIBILITY REQUIREMENTS

    3. The authority citation for 41 CFR part 302-2 continues to read 
as follows:

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a).


Sec.  302-2.8  [Amended]

    4. Amend Sec.  302-2.8 by removing ``two years'' and adding ``one 
year'' in its place.


Sec.  302-2.9  [Amended]

    5. Amend Sec.  302-2.9 by removing ``2-year'' and adding ``1-year'' 
in its place.


Sec.  302-2.10  [Amended]

    6. Amend Sec.  302-2.10 by removing ``2-year'' in both the heading 
and the text and adding ``1-year'' in its place.


Sec.  302-2.11  [Amended]

    7. Amend Sec.  302-2.11 by removing ``2-year'' in both the heading 
and the text and adding ``1-year'' in its place; and removing ``2 
additional years'' and adding ``one additional year'' in its place.
    8. Revise the undesignated center heading appearing immediately 
before Sec.  302-2.12 to read as follows:

Service Agreements and Disclosure Statement


Sec. Sec.  302-2.20, 302-2.21, 302-2.22  [Redesignated]

    9. Redesignate Sec. Sec.  302-2.20, 302-2.21, and 302-2.22 as 
Sec. Sec.  302-2.22, 302-2.23, 302-2.24, respectively, and move the 
undesignated center heading ``Advancement of Funds'' to precede the 
newly designated Sec.  302-2.22.
    9a. Add new Sec. Sec.  302-2.20 and 302-2.21 to read as follows:


Sec.  302-2.20  What is a disclosure statement?

    A disclosure statement is a written statement signed by you to your 
agency stating that you, your immediate family, or any third party 
vendor have not and will not accept duplicate reimbursement for 
relocation expenses. The statement must be signed at the same time as 
the service agreement.


Sec.  302-2.21  Must I sign a disclosure statement?

    Yes, you must sign a disclosure statement.

Subpart B--Agency Responsibilities

    10. Amend Sec.  302-2.100 by removing ``and'' at the end of 
paragraph (e), removing the period at the end of paragraph (f) and 
adding ``; and'' in its place, and adding paragraph (g) to read as 
follows:


Sec.  302-2.100  What internal policies must we establish before 
authorizing a relocation allowance?

* * * * *
    (g) That all relocating employees are required to sign a disclosure 
statement (see Sec. Sec.  302-2.20 and 302-2.21).


Sec.  302-2.110  [Amended]

    11. Amend Sec.  302-2.110 by removing ``2-year'' wherever it 
appears and adding ``1-year'' in its place.
    12. Amend Subpart B by adding a new undesignated center heading and 
new Sec. Sec.  302-2.200, 302-2.205, 302-2.300, 302-2.305, 302-2.400, 
and 302-2.405 to read as follows:

Relocation Programs


Sec.  302-2.200  What does the Federal relocation management program 
include?

    The Federal relocation management program includes--
    (a) All aspects of the Federal travel management program that 
support Federal relocation activities. (See Sec. Sec.  301-73.1 through 
301-73.30.) These include, but are not limited to, a--
    (1) Relocation authorization and claim system that implements the 
related requirements of the Federal Travel Regulation;
    (2) Travel Management System (TMS) that provides reservation and 
ticketing support for relocation activities;
    (3) Travel payment system for paying travel service providers used 
in support of a relocation; and use of all applicable contracts and 
similar arrangements, with transportation and lodging providers (e.g., 
Government-contract air carriers, rental car companies, trains, hotels, 
etc.) that give preferential rates and other benefits to Federal 
travelers on official business.
    (b) A relocation payment system for paying relocation service 
providers who are not paid from the Travel payment system; and
    (c) A Relocation Management Reporting System that captures and 
reports financial and other relocation data required by the biennial 
Travel Survey (see Sec. Sec.  300-70.1 through 300-70.4 of this title).


Sec.  302-2.205  What are agency responsibilities to implement the 
Federal relocation management program?

    Agencies must--
    (a) Designate an authorized representative to administer the 
program including the eTravel service or your agency's approved 
automated travel system;
    (b) Ensure that you have internal policies and procedures in place 
to implement the requirements of this chapter; and
    (c) Implement a Relocation Management Reporting System no later 
than September 30, 2005.

Relocation Payment System


Sec.  302-2.300  What is a relocation payment system?

    A relocation payment system facilitates the payment of official 
relocation expenses which include, but are not limited to--
    (a) Issuance and maintenance of Government contractor issued 
individually billed charge cards;
    (b) Establishment of centrally billed accounts for the purchase of 
travel and transportation services;
    (c) Issuance of travelers checks; and
    (d) Provision of automated-teller-machine (ATM) services worldwide.


Sec.  302-2.305  How do agencies obtain relocation payment system 
services?

    You may obtain relocation payment services by--
    (a) Participating in GSA's travel payment system;
    (b) Participating in another Federal agency's travel payment system 
services program; or
    (c) Contracting directly with a travel payment system service if 
your agency

[[Page 68114]]

has contracting authority, and you are not a mandatory user of GSA 
SmartPay charge card program.

    Note to Sec.  302-2.305: Under the GSA charge card program 
effective November 30, 1998, it will be your responsibility to 
select the vendor that will be most beneficial to your agency's 
travel and transportation needs.

Relocation Management Reporting System


Sec.  302-2.400  How do agencies acquire a Relocation Management 
Reporting System?

    You should acquire a Relocation Management Reporting System--
    (a) As one of the services offered by a relocation management 
company under contract with the Federal Government;
    (b) As a separate service provided by third party companies who 
specialize in such relocation management information services, or as a 
service provided by another Federal agency; or
    (c) You may also use relocation reporting capabilities that are 
included with your agency's financial management system, provided that 
those capabilities are sufficient to satisfy the data capture and 
reporting requirements of a Relocation Management Reporting System. 
(See Sec.  302-2.200.)


Sec.  302-2.405  May we obtain an exception from the use of a 
Relocation Management Reporting System?

    Yes, your agency head may request an extension on the 
implementation deadline by writing the Administrator of General 
Services, explaining the reason for the delay, and proposing an 
alternative deadline that would be more achievable by your agency that 
is no later than September 30, 2006. Requests for exceptions should be 
sent to the Office of Govermentwide Policy, Travel Management Policy, 
Room G-219, General Services Administration, 1800 F Street, NW., 
Washington, DC 20405.

PART 302-3--RELOCATION ALLOWANCE BY SPECIFIC TYPE

    13. The authority citation for 41 CFR part 302-3 continues to read 
as follows:

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a).

Sec. Sec.  302-3.304 through 302-3.315 [Redesignated]

    14. Redesignate Sec. Sec.  302-3.304 through 302-3.315 as 
Sec. Sec.  302-3.306, 302-3.307, 302-3.308, 302-3.309, 302-3.310, 302-
3.311, 302-3.312, 302-3.313, 302-3.314, 302-3.315, 302-3.316, 302-
3.317, respectively, and add new Sec. Sec.  302-3.304 and 302-3.305 to 
read as follows:


Sec.  302-3.304  Is there a time limit by when I must begin my 
relocation travel and transportation of household goods upon 
separation?

    Yes, all travel and transportation of household goods must begin no 
later than six months after--
    (a) Your date of separation; or
    (b) The date of death of the employee who died before separation.


Sec.  302-3.305  May I be granted an extension to the time limit for 
beginning my separation travel?

    Yes, your agency may grant you or your immediate family member(s) 
(in case of your death) an extension to the time limit for beginning 
your separation travel, for up to 2 years from your effective date of 
separation or death, if you died before separation.


Sec.  302-3.306  [Amended]

    15. Amend newly redesignated Sec.  302-3.306 by removing ``Sec.  
302-3.307'' in the introductory paragraph and adding ``Sec.  302-
3.309'' in its place.


Sec.  302-3.307  [Amended]

    16. Amend newly redesignated Sec.  302-3.307 by removing ``Sec.  
302-3.304'' in paragraph (b) and adding ``Sec.  302-3.306'' in its 
place.


Sec.  302-3.308  [Amended]

    17. Amend newly redesignated Sec.  302-3.308 by removing ``Sec.  
302-3.307'' in the introductory paragraph and adding ``Sec.  302-
3.309'' in its place.

PART 302-4--ALLOWANCES FOR SUBSISTENCE AND TRANSPORTATION

    18. The authority citation for 41 CFR part 302-4 continues to read 
as follows:

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 
13747, 3 CFR, 1971-1973 Comp., p. 586.
    19. Revise Sec.  302-4.300 to read as follows:


Sec.  302-4.300  What is the POV mileage rate for PCS travel?

    When PCS travel by POV is authorized/approved, the mileage 
reimbursement allowance shall not exceed that established, in any given 
year, by the IRS for moving expense deductions. See IRS Publication 
521, Moving Expenses, available on the Internet at http://www.irs.gov.


PART 302-5--ALLOWANCE FOR HOUSEHUNTING TRIP EXPENSES

    20. The authority citation for 41 CFR part 302-5 is revised to read 
as follows:

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 
13747, 3 CFR, 1971-1973 Comp., p. 586.


Sec.  302-5.11  [Amended]

    21. Amend Sec.  302-5.11 by removing ``10'' and adding ``8'' in its 
place.


Sec.  302-5.13  [Amended]

    22. Amend Sec.  302-5.13 by removing ``fixed amount'' wherever it 
appears and adding ``lump sum'' in its place.
    23. Revise Sec.  302-5.14 to read as follows:


Sec.  302-5.14  What transportation expenses will my agency pay?

    (a) Your agency will authorize you to travel by any transportation 
mode (e.g., common carrier or POV) it determines to be advantageous to 
the Government. Your agency will pay for your transportation expenses 
by the authorized mode. If you travel by any other mode, your agency 
will pay your transportation expenses not to exceed the cost of 
transportation by the authorized mode. Generally, trips of under 250 
miles will only be reimbursed for POV mileage and only at the rate 
prescribed in Sec.  302-4.300 of this chapter.
    (b) Unless the agency performs a written cost comparison proving 
cost savings, only common carrier will be authorized for trips with a 
distance greater than 250 miles.


Sec.  302-5.15  [Amended]

    24. Amend Sec.  302-5.15 by removing ``fixed amount'' wherever it 
appears and adding ``lump sum'' in its place.


Sec.  302-5.16  [Amended]

    25. Amend Sec.  302-5.16 by removing ``Sec.  302-2.20'' and adding 
``Sec. Sec.  302-2.21 and 302-2.22'' in its place; and by removing 
``fixed amount'' wherever it appears and adding ``lump sum'' in its 
place.


Sec.  302-5.18  [Amended]

    26. Amend Sec.  302-5.18 by removing ``fixed amount'' in the 
section heading and adding ``lump sum'' in its place; and removing 
``fixed'' in the section text and adding ``lump sum'' in its place.


Sec.  302-5.101  [Amended]

    27. Amend Sec.  302-5.101 by removing ``fixed amount'' wherever it 
appears and adding ``lump sum'' in its place.


Sec.  302-5.103  [Redesignated]

    28. Redesignate Sec.  302-5.103 as Sec.  302-5.104 and add a new 
Sec.  302-5.103 to read as follows:


Sec.  302-5.103  What modes of transportation may we authorize for a 
househunting trip?

    (a) When the new official station is less than 250 miles from the 
old official station, you should only authorize the use of the 
employee's POV for a

[[Page 68115]]

househunting trip (HHT) and reimbursement for POV mileage at the rate 
prescribed in this part.
    (b) When the new official station is 250 miles or more from the old 
official station, you may authorize the use of the common carrier 
transportation or POV for a househunting trip, whichever is most 
advantageous to the Government. Reimbursement for the related 
transportation costs is prescribed in part 302-5 of this chapter.
    (c) Exceptions for this rule may be granted by the agency when an 
employee or immediate family member(s) has special circumstances 
requiring an exception (see Sec.  303-13).


Sec.  302-5.104  [Amended]

    29. Amend newly redesignated Sec.  302-5.104 by removing ``fixed 
amount'' wherever it appears and adding ``lump sum'' in its place.

PART 302-6--ALLOWANCE FOR TEMPORARY QUARTERS SUBSISTENCE EXPENSES 
(TQSE)

    30. The authority citation for 41 CFR part 302-6 is revised to read 
as follows:

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 
13747, 3 CFR, 1971-1973 Comp., p. 586.


Sec. Sec.  302-6.11 and 302-6.12  [Amended]

    31. Amend Sec. Sec.  302-6.11 and 302-6.12 by removing ``fixed 
amount'' wherever it appears and adding ``lump sum'' in its place.


Sec.  302-6.15  [Amended]

    32. Amend Sec.  302-6.15 by removing ``Sec.  302-2.20'' and adding 
``Sec. Sec.  302-2.21, 302-2.22, and 302-2.23'' in its place.
    33. Revise Sec.  302-6.100 to read as follows:


Sec.  302-6.100  What am I paid under the actual TQSE reimbursement 
method?

    Your agency will pay your actual TQSE incurred, provided the 
expenses are reasonable and do not exceed the maximum allowable amount. 
The ``maximum allowable amount'' is the ``maximum daily amount'' 
multiplied by the number of days you actually incur TQSE not to exceed 
the number of days authorized, taking into account that the rates 
decrease after the first 30 days. The ``maximum daily amount'' is 
determined by adding the rates in the following table for you and each 
member of your immediate family authorized to occupy temporary 
quarters:

----------------------------------------------------------------------------------------------------------------
                                          The ``maximum daily amount'' of TQSE under the actual expense method
                                                                         that--
                                      --------------------------------------------------------------------------
                                                                Your accompanied spouse
                 For                         You and your         or a member of your       Any member of your
                                       unaccompanied spouse\1\  immediate family age 12   immediate family under
                                        may each receive is--      or older may each     age 12 may each receive
                                                                      receive is--                 is--
----------------------------------------------------------------------------------------------------------------
Day 1 to Day 30......................  100% x the applicable    75% x the applicable     50% x the applicable
                                        per diem rate.           per diem rate.           per diem rate.
Day 31 to Day 120....................  55% x the applicable     40% x the applicable     30% x the applicable
                                        per diem rate.           per diem rate.           per diem rate.

----------------------------------------------------------------------------------------------------------------
\1\ (That is, when the spouse necessarily occupies temporary quarters in lieu of the employee or in a location
  separate from the employee.)

    34. Revise subpart C, consisting of Sec. Sec.  302-6.200 through 
302-6.204 to read as follows:

Subpart C--Lump Sum Payment


Sec.  302-6.200  What am I paid under the lump sum payment 
reimbursement method?

    If your agency offers and you select the lump sum TQSE payment, you 
are paid a lump sum for each day authorized up to 30 days. No 
extensions are allowed under the lump sum payment.


Sec.  302-6.201  How do I determine the amount of my lump sum payment?

    (a) Multiply the number of days your agency authorizes TQSE by the 
maximum per diem rate (i.e., lodging plus meals and incidental 
expenses) prescribed in FTR Per Diem Bulletin for the locality i.e., 
the old or new official station or combination thereof, where temporary 
quarters will be occupied.
    (b) For each member of your immediate family, multiply the same 
number of days by .25 times the same per diem rate.
    (c) Your payment will be the sum of the calculations in paragraphs 
(a) and (b).


Sec.  302-6.202  Will I receive additional TQSE reimbursement if my 
lump sum payment is not adequate to cover my actual TQSE?

    No, you will not receive additional TQSE reimbursement if the lump 
sum payment is not adequate to cover your actual TQSE.


Sec.  302-6.203  May I retain any balance left over from my TQSE lump 
sum payment if such payment is more than adequate?

    Yes, if your lump sum TQSE payment is more than adequate to cover 
your actual TQSE expenses, any balance belongs to you.

    Note to Sec.  302-6.203: For example, if your agency authorizes 
and you accept a lump sum payment for 15 days of TQSE and you vacate 
temporary quarters after 10 days for any reason, you would retain 
the remaining balance for the 5 days of TQSE not incurred.

Sec.  302-6.204  Am I required to file a voucher for TQSE if I selected 
the lump sum payment?

    No, the intent of the lump sum payment is to simplify the process 
and eliminate the need for filing a voucher, however, your agency may 
request proof that you actually occupied temporary quarters and in the 
absence of sufficient proof, demand repayment of the TQSE lump sum 
payment in accordance with Sec.  302-6.305.


Sec.  302-6.301  [Amended]

    34a. Amend Sec.  302-6.301 by removing ``fixed amount'' wherever it 
appears and adding ``lump sum'' in its place.
    35. Revise Sec.  302-6.304 to read as follows:


Sec.  302-6.304  What factors should we consider in determining whether 
to offer an employee the lump sum payment option for TQSE?

    When determining whether to offer an employee the lump sum payment 
option for TQSE, the following factors should be considered:
    (a) Ease of administration. A lump sum for TQSE is paid to the 
employee prior to the occupancy of temporary quarters, and the voucher 
review process is eliminated under this method. Actual TQSE 
reimbursement requires an agency to review claims and receipts for the 
validity, accuracy, and reasonableness of each expense amount.
    (b) Cost consideration. You must weigh the cost of each 
alternative. Actual TQSE reimbursement may extend up to 120 consecutive 
days, while the lump sum payment is limited to a maximum of 30 days.
    (c) Treatment of employee. The employee is allowed to choose 
between actual TQSE reimbursement and the lump sum TQSE payment when 
you

[[Page 68116]]

offer the lump sum TQSE payment method. You therefore should weigh 
employee morale and productivity considerations against actual cost 
considerations in determining which method to offer.


Sec.  302-6.305  [Redesignated as Sec.  302-6.307]

    36. Redesignate Sec.  302-6.305 as Sec.  302-6.307.
    37. Add new Sec. Sec.  302-6.305 and 302-6.306 to read as follows:


Sec.  302-6.305  Must we require transferees to sign a statement that 
TQSE was incurred?

    Yes, transferees electing the lump sum TQSE reimbursement option 
must sign a statement that they will occupy temporary quarters and 
incur TQSE expenses. If no TQSE expenses are incurred, all monies 
advanced for the lump sum TQSE payment must be returned to the agency. 
You must not authorize lump sum TQSE for employees who do not need 
temporary quarters.


Sec.  302-6.306  When must we make the lump sum TQSE payment to the 
transferee?

    You must pay the transferee the lump sum TQSE payment prior to the 
occupancy of temporary quarters.

PART 302-7--TRANSPORTATION AND TEMPORARY STORAGE OF HOUSEHOLD GOODS 
AND PROFESSIONAL BOOKS, PAPERS, AND EQUIPMENT (PBP&E)

    38. The authority citation for 41 CFR part 302-7 continues to read 
as follows:

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 
13747, 3 CFR, 1971-1973 Comp., p. 586.


Sec.  302-7.1  [Amended]

    39. Amend Sec.  302-7.1 by removing ``Sec.  302-3.304'' from 
paragraph (d) and adding ``Sec.  302-3.306'' in its place.
    40. Revise Sec.  302-7.2 to read as follows:


Sec.  302-7.2  What is the maximum weight of HHG that may be 
transported or stored at Government expense?

    By statue, the maximum weight allowance of HHG that may be shipped 
or stored at Government expense is 18,000 pounds net weight. The HHG 
net weight is determined by subtracting 10 percent from the shipment 
net weight as shown on the shipping documents to reflect the weight of 
packing materials.
    41. Revise section 302-7.4 to read as follows:


Sec.  302-7.4  Does the weight of any professional books, papers and 
equipment (PBP&E) or Unaccompanied Air Baggage (UAB) count against the 
18,000 pound HHG weight limitation?

    (a) Yes, the weight of any PBP&E and UAB (see subpart D of this 
part) is generally part of and not in addition to the 18,000 pounds net 
HHG weight limitation. However, if the weight of any PBP&E causes the 
lot to exceed 18,000 pounds net weight, the excess weight of the PBP&E 
may be transported to the new duty station as an administrative expense 
of the agency. To the extent possible for ease of administration, the 
PBP&E items should be included as part of the HHG shipment. Only in the 
case of an overweight shipment should a separate administrative expense 
be charged to the agency, and only for the overweight portion of the 
shipment. Authorization for such shipment is granted solely at the 
discretion of the agency and subject to its policies governing such 
shipment. (See definition of PBP&E in Sec.  300-3.1 of this subtitle.)
    (b) If PBP&E are included with an HHG shipment and cause an 
overweight condition, you must identify this fact and the total weight 
of the PBP&E, so that your agency is made aware of this situation and 
determine whether or not to approve the shipment of the overweight 
PBP&E.


Sec. Sec.  302-7.8 through 302-7.20  [Redesignated]

    42. Redesignate Sec. Sec.  302-7.8 through 302-7.20 as Sec. Sec.  
302-7.9, 302-7.10, 302-7.11, 302-7.12, 302-7.13, 302-7.14, 302-7.15, 
302-7.16, 302-7.17, 302-7.18, 302-7.19, 302-7.20, 302-7.21, 
respectively, and add a new Sec.  302-7.8 to read as follows:


Sec.  302-7.8  At what location may my HHG be temporarily stored?

    Your HHG may be placed in temporary storage at origin, in transit, 
at destination, or any combination thereof upon agency approval.
    43. Revise newly redesignated Sec.  302-7.9 to read as follows:


Sec.  302-7.9  Is there a time limit for the temporary storage of an 
authorized HHG shipment?

    (a) The initial period of temporary storage at Government expense 
shall not exceed 60 days in connection with any authorized HHG 
shipment. However, upon your written request, up to an additional 90 
days may be authorized by the designated agency official. In no case 
may the maximum time limit for temporary storage exceed 150 days.
    (b) The number of days authorized for HHG storage must coincide 
with the number of days authorized for TQSE. For example, if TQSE is 
authorized for 60 days, storage of HHG must be equal to the number of 
days authorized for TQSE plus a reasonable number of days for delivery 
from the storage location (not to exceed 14 days).


Sec.  302-7.10  [Amended]

    44. Amend newly redesignated Sec.  302-7.10 by removing ``90-day'' 
and adding ``60-day'' in its place in the section heading and 
introductory paragraph.
    45. Revise newly redesignated Sec.  302-7.16 to read as follows:


Sec.  302-7.16  Must I use the method selected by my agency for 
transporting my HHG, PBP&E and temporary storage?

    No, you do not have to use the method selected (Sec.  302-7.301) by 
your agency for transporting your HHG, PBP&E and temporary storage. You 
may pursue other methods. However, your reimbursement is limited to the 
actual cost incurred, not to exceed what the Government would have 
incurred under the method selected by your agency.
    46. Revise newly redesignated Sec.  302-7.21 to read as follows:


Sec.  302-7.21  If my HHG shipment includes an item (e.g., boat, 
trailer, ultralight vehicle) for which a weight additive is assessed by 
the HHG carrier, am I responsible for payment?

    Yes, you are responsible for the shipping charges resulting from 
the weight additive as well as any special packing, crating, and 
handling of the weight additive items. If your HHG shipment includes an 
item (e.g., boat or trailer) for which a weight additive is assessed by 
the HHG carrier (as prescribed in applicable tariffs), only the actual 
weight of the item and not the weight additive is included in the 
computation of the maximum weight prescribed in Sec.  302-7.2. (For 
example, when a weight additive of 700 pounds is imposed by a HHG 
carrier on a 65-pound canoe, only the 65 pounds is charged against the 
employee's 18,000 pounds net weight allowance). See Sec.  302-7.200 on 
how charges are paid and who makes the shipping arrangements.
    47. Revise subpart D and add a new subpart E to read as follows:

Subpart D--Baggage Allowance

302-7.300 When may I be authorized a UAB shipment?
302-7.301 Is my UAB shipment in addition to the 18,000 pounds net 
weight of HHG weight allowance?
302-7.302 What is the maximum weight allowance for a UAB shipment?
302-7.303 When may my agency authorize the shipment of UAB?


[[Page 68117]]

302-7.304 Is there a time limit for shipment of my UAB?
302-7.305 Who makes arrangements for transporting my UAB?

Subpart E--Agency Responsibilities

302-7.400 What policies and procedures must we establish for this 
part?
302-7.401 What method of transportation should we authorize for 
shipment of HHG and temporary storage?
302-7.402 What method of transportation should we authorize for 
shipment of PBP&E and UAB?
302-7.403 What guidelines must we follow when authorizing 
transportation of PBP&E as an administrative expense?
302-7.404 When HHG are shipped under the actual expense method and 
PBP&E are shipped as an administrative expense in the same lot, are 
separate weight certificates required?
302-7.405 How must we arrange transportation of HHG and UAB?

Subpart D--Baggage Allowance


Sec.  302-7.300   When may I be authorized a UAB shipment?

    You may be authorized a UAB shipment prior to transferring from a 
CONUS location to an OCONUS location, between OCONUS locations, and 
from an OCONUS location to a CONUS location.


Sec.  302-7.301   Is my UAB shipment in addition to the 18,000 pounds 
net weight of HHG weight allowance?

    No, the UAB shipment is part of, not in addition to, the 18,000 
pounds net weight allowance for HHG.


Sec.  302-7.302  What is the maximum weight allowance for a UAB 
shipment?

    The maximum weight allowance for a UAB shipment is--
    (a) 350 pounds net weight for the employee and for each immediate 
family member 12 years of age and over; or
    (b) 175 pounds net weight for each immediate family member under 12 
years of age.


Sec.  302-7.303  When may my agency authorize the shipment of UAB by 
expedited means?

    Your agency may authorize the shipment of UAB by expedited means 
when--
    (a) Shipment by a lower cost mode cannot provide the required 
service, or
    (b) You certify that your UAB is necessary to carry out your 
assigned duties, or
    (c) Your agency determines that an expedited shipment is necessary 
to prevent undue hardship to you and members of your immediate family.


Sec.  302-7.304  Is there a time limit for shipment of my UAB?

    Yes, your UAB must be shipped prior to your departure from your old 
duty station to ensure that your shipment arrives by the time you 
report to your new duty station. Arrangements should begin prior to 
your departure to your new duty station.


Sec.  302-7.305   Who makes arrangements for transporting my UAB?

    Your agency or your agency's designee should arrange for the 
transport of your UAB.

Subpart E--Agency Responsibilities

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

Sec.  302-7.400  What policies and procedures must we establish for 
this part?

    You must establish policies and procedures as required for this 
part, including who will--
    (a) Administer your household goods program;
    (b) Authorize PBP&E to be transported as an agency administrative 
expense;
    (c) Authorize an employee to ship UAB;
    (d) Authorize temporary storage in excess of the initial 60-day 
limit;
    (e) Collect any excess cost or charges;
    (f) Advise the employee on the Government's liability for any loss 
and damage claims under 31 U.S.C. 3721-3723; and
    (g) Ensure that international HHG shipments by water are made on 
ships registered under the laws of the United States whenever such 
ships are available.


Sec.  302-7.401   What method of transportation should we authorize for 
shipment of HHG and temporary storage?

    There are two methods of transporting HHG and providing for 
temporary storage, actual expense and commuted rate. As a general rule, 
you should authorize the method that is less costly to the Government. 
The selected method should be stated on the relocation travel 
authorization. Additional considerations that might affect your choice 
of method are:
    (a) Actual Expense Method. Under the actual expense method, the 
Government assumes the responsibility for arranging and paying for the 
actual expenses of all aspects of transporting the employee's HHG, 
including PBP&E (e.g., packing/unpacking, pickup/delivery, weighing, 
line-haul, drayage, temporary storage, etc.). This method is used for 
all shipments OCONUS and within CONUS, where deemed economical to the 
Government.
    (b) Commuted Rate System. Under the commuted rate system, the 
employee assumes total responsibility for arranging and paying for the 
following services: Packing/unpacking, crating/uncrating, pickup/
delivery, weighing, line-haul, drayage, and temporary storage of the 
employee's HHG (including PBP&E) with a commercial HHG carrier or by 
renting self drive equipment for a do-it-yourself move. The commuted 
rate is calculated based on published freight tariffs applied to the 
actual weight of the goods being shipped (subject also to the weight 
limitation in Sec.  302-7.2). The commuted rate method may be used in 
lieu of the actual expense method for relocation or first duty station 
assignment within CONUS, as long as using this method is less expensive 
than using the actual expense method. If PBP&E make the weight of a 
shipment under the commuted rate method go over the 18,000 net weight 
limit for HHE, then the actual cost of shipping that excess weight must 
be paid as an administrative expense of the agency. In this case, all 
related transportation arrangements (e.g., packing/unpacking, pickup/
delivery, weighing, temporary storage, etc.) associated with shipping 
this excess weight will be handled and paid for by your agency.


Sec.  302-7.402  What method of transportation should we authorize for 
shipment of PBP&E and UAB?

    You should authorize the actual expense method for transporting an 
employee's PBP&E only when the weight of the PBP&E causes the 
employee's shipment to exceed the maximum 18,000 pounds net HHG weight 
limitation and in accordance with Sec.  302-7.403. PBP&E and UAB should 
be weighed prior to shipment, if necessary, so the weight can easily be 
deducted from the 18,000 pounds net weight allowance. The PBP&E 
shipment should then be made separate from the HHG shipment and is an 
administrative expense to your agency if your agency authorized PBP&E 
and the PBP&E caused the HHG shipment to go overweight.


Sec.  302-7.403   What guidelines must we follow when authorizing 
transportation of PBP&E as an administrative expense?

    You have the sole discretion to authorize transportation of PBP&E 
as an administrative expense and may do so provided that--
    (a) An itemized inventory of PBP&E is provided for review by the 
authorizing official at the new official station;

[[Page 68118]]

    (b) The authorizing official at the new official station has 
certified that the PBP&E are necessary for performance of the 
employee's duties at the new duty station, and if these items were not 
transported, the same or similar items would have to be obtained at 
Government expense for the employee's use at the new official station; 
and
    (c) You have acquired evidence that transporting the PBP&E would 
cause the employees' HHG to exceed the 18,000 pounds maximum net weight 
allowance.


Sec.  302-7.404   When HHG are shipped under the actual expense method 
and PBP&E are shipped as an administrative expense in the same lot, are 
separate weight certificates required?

    Yes, separate weight certificates are required. The weight of PBP&E 
and the administrative appropriation chargeable must be listed as 
separate items on the bill of lading or other shipping document.


Sec.  302-7.405   How must we arrange transportation of HHG and UAB?

    When arranging transportation of HHG and UAB, you should--
    (a) Determine the constructive cost of transporting HHG plus UAB, 
not to exceed 18,000 pounds net weight in one lot by the most 
economical means and limit the employee's HHG transportation payment to 
such constructive cost;
    (b) Make arrangements for transporting the employee's UAB under the 
appropriate bill of lading with direct payment by the agency; and
    (c) Advise employees of this relocation entitlement limitation and 
its potential to result in out-of-pocket expenses to the employee. 
Advise employees that they will have to use their personal funds to pay 
for transporting HHG (including UAB) in excess of 18,000 pounds net 
weight.
    48. Add Appendix A to part 302-7 as follows:

Appendix A to Part 302-7--How to Calculate a Constructive Cost

    An employee is authorized temporary duty (TDY) in Dallas, TX, 
from his/her permanent duty station in Washington, DC.
    Employee is authorized to travel by commercial air; however, 
employee elects to travel by privately owned vehicle (POV) (not 
authorized). Maximum per diem rate for Dallas, TX, at the time of 
the TDY assignment, $142.00 ($95.00 maximum lodging plus $47.00 
(meals and incidental expenses (M&IE)). Actual lodging cost at 
Dallas, TX, was $85.00.

             Total Constructed Travel Cost By Common Carrier
------------------------------------------------------------------------

------------------------------------------------------------------------
Round-trip air coach ticket (city-pair fare paid by              $355.71
 Government) =..............................................
Taxi fare residence to airport =............................      $35.00
Taxi fare airport to hotel =................................      $25.00
First Day - travel to Dallas: 75% of M&IE rate for Dallas,       $120.25
 plus lodging cost = $35.25 (75% x $47.00) plus $85.00
 lodging cost =.............................................
Three full days TDY in Dallas: 3 days x $132.00 ($85.00          $396.00
 lodging + $47.00 M&IE) =...................................
Last Day - return to PDS Washington, DC: 75% of M&IE rate         $35.25
 for Dallas, TX = (75% X $47.00) =..........................
Lodging Taxes in Dallas (13%) =.............................      $44.20
Taxi fare hotel to airport =................................      $25.00
Taxi fare airport to residence =............................      $35.00
Total constructed cost by common carrier =..................   $1,071.41
------------------------------------------------------------------------

PART 302-9--ALLOWANCES FOR TRANSPORTATION AND EMERGENCY STORAGE OF 
A PRIVATELY OWNED VEHICLE

    49. The authority citation for 41 CFR part 302-9 continues to read 
as follows:

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 
13747, 3 CFR, 1971-1973 Comp., p. 586.


Sec.  302-9.140   [Amended]

    50. Amend Sec.  302-9.140 in paragraph (a) by removing ``Sec.  302-
9.503'' and adding ``302-9.504'' in its place.


Sec.  302-9.170   [Amended]

    51. Amend Sec.  302-9.170 by removing ``302-9.503'' in paragraph 
(d) and adding ``302-9.504'' in its place.
    52. Amend Sec.  302-9.301 by removing ``and'' at the end of 
paragraph (b), removing the period at the end of paragraph (c) and 
adding ``;'' in its place, and adding paragraphs (d) and (e) to read as 
follows:


Sec.  302-9.301   Under what conditions may my agency authorize 
transportation of my POV within CONUS?

* * * * *
    (d) Your agency must determine that the cost of transporting your 
POV is not greater than the value of your POV; and
    (e) The distance to be shipped is 600 miles or more.
    53. Revise Sec.  302-9.302 to read as follows:


Sec.  302-9.302   How many POV's may I be authorized to transport 
within CONUS?

    You may be authorized to transport up to two POV's within CONUS at 
Government expenses under this subpart, provided your agency determines 
such transportation is advantageous and cost effective to the 
Government in accordance with Sec.  302-9.301.


Sec. Sec.  302-9.501 through 302-9.505   [Redesignated]

    54. Redesignate Sec. Sec.  302-9.501 through 302-9.505 as 
Sec. Sec.  302-9.502, 302-9.503, 302-9.504, 302-9.505, 302-9.506, 
respectively, and add a new Sec.  302-9.501 to read as follows:


Sec.  302-9.501   How many POV's may we authorize for transporting at 
Government expense?

    You may authorize transportation of up to two POV's at Government 
expense.


Sec.  302-9.504   [Amended]

    55. Amend newly designated Sec.  302-9.504 by removing the 
reference to ``Sec.  302-9.504'' and adding ``Sec.  302-9.505'' in its 
place.
    56. Amend newly designated Sec.  302-9.505 by removing ``and'' at 
the end of paragraph (c), removing the period at the end of paragraph 
(d) and adding ``; and'' in its place, and adding paragraph (e) to read 
as follows:


Sec.  302-9.505   What factors must we consider in deciding whether to 
authorize transportation of a POV to a post of duty?

* * * * *
    (e) Cost of transporting the POV to the new duty station will be 
greater than the value of the POV.
    57. Amend newly designated Sec.  302-9.506 by removing the period 
at the end of paragraph (d) and adding ``; and'' in its place, and 
adding paragraph (e) to read as follows:


Sec.  302-9.506   What must we consider in determining whether 
transportation of a POV within CONUS is cost effective?

* * * * *
    (e) Cost of transporting the POV to the new duty station will be 
greater than the value of the POV.

[[Page 68119]]

PART 302-11--ALLOWANCES FOR EXPENSES INCURRED IN CONNECTION WITH 
RESIDENCE TRANSACTIONS

    58. The authority citation for 41 CFR part 302-11 continues to read 
as follows:

    Authority: 5 U.S.C. 5738 and 20 U.S.C. 905(c).
    59. Amend Sec.  302-11.2 by removing the period at the end of 
paragraph (b)(2) and adding ``; and'' in its place, and adding 
paragraphs (c) and (d) to read as follows:


Sec.  302-11.2   Am I eligible to receive an allowance for expenses 
incurred in connection with my residence transactions?

* * * * *
    (c) For this allowance to be tax deductible, your commute from the 
old residence to the new duty station by commonly traveled routes must 
increase by at least 50 miles. (See Internal Revenue Service 
Publication 521, Moving Expenses.) However, the head of your agency or 
designee may authorize an exception to the 50-mile threshold on a case-
by-case basis when he/she determines that it is in the best interest of 
the Government. If such an exception is authorized, however, this 
allowance is not tax deductible.
    (d) Any relocation must be incident to the transfer and not for the 
convenience of the employee.


Sec.  302-11.21   [Amended]

    60. Amend Sec.  302-11.21, in the second sentence, by removing 
``two years'' and adding ``one year'' in its place.
    61. Revise Sec.  302-11.22 to read as follows:


Sec.  302-11.22   May the 1-year time limitation be extended by my 
agency?

    Yes, your agency may extend the 1-year limitation for up to one 
additional year for reasons beyond your control and acceptable to your 
agency.
    62. Amend Sec.  302-11.200 by revising the introductory paragraph 
to read as follows:


Sec.  302-11.200  What residence transaction expenses will my agency 
pay?

    Your agency will reimburse you for residence transaction expenses 
not to exceed those customarily charged in the locality where the 
residence is located. Provided that they are customarily paid by the 
seller of a residence at the old official station or by the purchaser 
of a residence at the new official station, your agency will pay the 
following expenses:
* * * * *

PART 302-15--ALLOWANCE FOR PROPERTY MANAGEMENT SERVICES

    63. The authority citation for 41 CFR part 302-15 continues to read 
as follows:

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 
13747, 3 CFR, 1971-1973 Comp., p. 586.
    64. Revise Sec.  302-15.2 to read as follows:


Sec.  302-15.2  What are the purposes of the property management 
services allowance?

    The purposes of the property management allowance are--
    (a) To reduce overall Government relocation costs by using the 
property management allowance in place of the allowances for the sale 
of the employee's residence; and
    (b) To relieve employees transferred OCONUS from the costs of 
maintaining a home in the United States during their tour of duty.
    65. Revise Sec.  302-15.70 to read as follows:


Sec.  302-15.70  What governing policies must we establish for the 
allowance for property management services?

    You must establish policies and procedures governing--
    (a) When you will authorize payment for property management 
services for an employee who transfers in the interest of the 
Government;
    (b) When it is appropriate to authorize this service on a 
reimbursable basis to the employee, rather than paying the property 
management company directly as long as any reimbursement is limited to 
the agency negotiated rate for this service or lower;
    (c) Who will determine, for relocations to official duty stations 
in the United States, whether payment for property management services 
is more advantageous and cost effective than sale of an employee's 
residence at Government expense;
    (d) If and when you will allow an employee who was offered and 
accepted payment for property management services to change his/her 
residence at Government expense in accordance with paragraph (e) of 
this section; and
    (e) How you will offset expenses you have paid for property 
management services against payable expenses for sale of the employee's 
residence when an eligible employee who elected payment for property 
management services later changes his/her mind and elects instead to 
sell his/her residence at Government expense.
[FR Doc. 04-25890 Filed 11-22-04; 8:45 am]

BILLING CODE 6820-14-S