[House Report 108-673]
[From the U.S. Government Publishing Office]
108th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 108-673
======================================================================
TRANSIT PASS TRANSPORTATION FRINGE BENEFITS FOR FEDERAL EMPLOYEES
_______
September 9, 2004.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Tom Davis of Virginia, from the Committee on Government Reform,
submitted the following
R E P O R T
[To accompany H.R. 1151]
[Including cost estimate of the Congressional Budget Office]
The Committee on Government Reform, to whom was referred the
bill (H.R. 1151) to provide that transit pass transportation
fringe benefits be made available to all qualified Federal
employees in the National Capital Region; to allow passenger
carriers which are owned or leased by the Government to be used
to transport Government employees between their place of
employment and mass transit facilities, and for other purposes,
having considered the same, report favorably thereon without
amendment and recommend that the bill do pass.
CONTENTS
Page
Committee Statement and Views.................................... 2
Section-by-Section............................................... 2
Explanation of Amendments........................................ 3
Committee Consideration.......................................... 3
Rollcall Votes................................................... 3
Application of Law to the Legislative Branch..................... 3
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 3
Statement of General Performance Goals and Objectives............ 3
Constitutional Authority Statement............................... 3
Unfunded Mandate Statement....................................... 4
Committee Estimate............................................... 4
Budget Authority and Congressional Budget Office Cost Estimate... 4
Changes in Existing Law Made by the Bill as Reported............. 6
Committee Statement and Views
PURPOSE AND SUMMARY
H.R. 1151 seeks to ensure that transit pass transportation
fringe benefits be made available to all qualified Federal
employees in the National Capital Region and to allow passenger
carriers which are owned or leased by the Government to be used
to transport Government employees between their place of
employment and mass transit facilities.
BACKGROUND AND NEED FOR LEGISLATION
The National Capital Region (NCR) has many buildings that
house the executive, legislative, and judicial branches of the
government, and is home to over 330,000 federal employees. The
Washington region has grown exponentially in recent years, and
is currently the second most congested in the nation behind Los
Angeles. As the region's largest employer, the federal
government has a responsibility to its employees to expand
commuting alternatives, and to the region to reduce federal
employees' contribution to traffic congestion and air
pollution.
In 2000, Executive Order 13150 required all Executive
Branch agencies in the National Capital Region to offer transit
benefits to their employees. According to the Washington
Metropolitan Area Transit Authority (WMATA) and the U.S.
Department of Transportation, nearly one-third of all federal
employees in the NCR have joined the federal transit benefit
program. H.R. 1151 seeks to codify and expand this program to
ensure the choice for all federal employees in the NCR.
LEGISLATIVE HISTORY
H.R. 1151 was introduced by Representative James Moran on
March 6, 2003. The Subcommittee on Civil Service and Agency
Organization reported the bill to the full committee on July
16, 2003. On September 25, 2003, the Committee met in open
session, and by voice vote, ordered the bill favorably reported
to the House of Representatives.
Section-by-Section
Section 1. Transit pass transportation fringe benefits
Section 1 directs all executive branch agencies, including
those not originally covered under Executive Order 13150, as
well as the legislative and judicial branches, all independent
federal agencies, the U.S. Postal Service and the Smithsonian
Institution not originally covered by the executive order, to
provide transit pass transportation fringe benefits in the
amount equal to commuting costs and subject to the statutory
maximum allowed under Title 26, United States Code, to
qualified employees using qualified transit facilities in the
National Capital Region.
Section 2. Authority to use government vehicles to transport federal
employees between their place of employment and transit
facilities
Section 2 amends Section 1344 of Title 31 to authorize
federal agencies to use, from funds already made available,
government-owned or leased passenger carriers to transport
employees between public transportation centers and their place
of employment. The section authorizes the use of funds for the
maintenance and repair of such vehicles.
Section 2 would also require agencies to use alternative
fuel vehicles when possible and coordinate with other agencies
to avoid duplication.
Explanation of Amendments
The Committee did not adopt any amendments.
Committee Consideration
On September 25, 2003, the Committee met in open session,
and by voice vote, ordered reported favorably the bill, H.R.
1151.
Rollcall Votes
No rollcall votes were held.
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch where the bill relates to the terms and conditions of
employment or access to public services and accommodations.
This bill seeks to ensure that transit pass transportation
fringe benefits be made available to all qualified Federal
employees in the National Capital Region and to allow passenger
carriers which are owned or leased by the Government to be used
to transport Government employees between their place of
employment and mass transit facilities. Legislative branch
employees in the National Capital Region have equal access to
the benefits of this bill.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives are reflected in the descriptive portions
of this report.
Constitutional Authority Statement
Under clause 3(d)(1) of rule XIII of the Rules of the House
of Representatives, the Committee must include a statement
citing the specific powers granted to Congress to enact the law
proposed by H.R. 1151. Article I, Section 8, Clause 18 of the
Constitution of the United States provide Congress the power to
enact this law.
Unfunded Mandate Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandate Reform Act, P.L. 104-4) requires a statement whether
the provisions of the reported include unfunded mandates. In
compliance with this requirement the Committee has received a
letter from the Congressional Budget Office included herein.
Committee Estimate
Clause 3(d)(2) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison by the
Committee of the costs that would be incurred in carrying out
H.R. 1231. However, clause 3(d)(3)(B) of that rule provides
that this requirement does not apply when the Committee has
included in its report a timely submitted cost estimate of the
bill prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act.
Budget Authority and Congressional Budget Office Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause (3)(c)(3) of rule XIII of the Rules
of the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee has received
the following cost estimate for H.R. 1231 from the Director of
Congressional Budget Office:
H.R. 1151--A bill to provide that transit pass transportation fringe
benefits be made available to all qualified federal employees
in the National Capital Region; to allow passenger carriers
which are owned or leased by the government to be used to
transport government employees between their place of
employment and mass transit facilities, and for other purposes
Summary: H.R. 1151 would codify and expand Executive Order
13150 to provide a tax-free transportation benefit to federal
employees in the National Capital Region, beginning in fiscal
year 2005. Issued in April 2000, Executive Order 13150 directed
all executive branch agencies to provide employees in the
National Capital Region who use public transportation to
commute to work with free transit passes (known as METROcheks)
with a value equal to actual commuting costs but not more than
$100 per month. H.R. 1151 would expand this program to include
employees with the legislative and judicial branches, the
Smithsonian Institution, and the U.S. Postal Service. In
addition, the legislation would allow federal agencies to
extend existing transit services to take employees between work
sites and public transportation centers.
CBO estimates that expanding the transportation benefit
program to postal employees in the National Capital Region
would increase direct spending by the U.S. Postal Service by
about $12 million over the 2005-2006 period. (Postal Service
spending is classified as off-budget.) CBO estimates that
extending the program to other federal employees in the region
would cost $3 million annually, beginning in fiscal year 2005,
subject to the availability of appropriated funds. This
legislation would codify existing agency practices and
policies; therefore, this estimate excludes executive,
legislative, and judicial branch employees who can currently
participate in the transportation benefit program.
H.R. 1151 contains no intergovernmental or private-sector
mandates as defined by the Unfunded Mandates Reform Act (UMRA),
and CBO estimates that the bill would have no significant
impact on state, local, or tribal governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 606 is shown in the following table. The
costs of this legislation fall within budget functions 372
(postal service), 500 (education, training, employment, and
social services) and 800 (general government).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------
2004 2005 2006 2007 2008
----------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Off-Budget Effects--Postal Service:
Estimated Budget Authority................................ 0 6 6 0 0
Estimated Outlays......................................... 0 6 6 0 0
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Commuting Benefit for Nonpostal Federal Employees:
Estimated Budget Authority................................ 0 3 3 3 3
Estimated Outlays......................................... 0 3 3 3 3
----------------------------------------------------------------------------------------------------------------
Basis of estimate: For this estimate, CBO assumes that the
legislation will be enacted by the start of fiscal year 2005,
that the necessary amounts will be appropriated for each fiscal
year, and that outlays will occur at historical patterns for
similar programs.
Direct spending
According to the Washington Metropolitan Area
Transportation Authority (WMATA) and the Department of
Transportation, the average annual benefit provided to federal
employees in the National Capital Region is $1,080. CBO
estimates that 25 percent of the 22,000 Postal Service
employees in the National Capital Region would apply for the
new benefit. That estimate is based on information by WMATA,
which expects that Postal Service employeeswould use
transportation benefits much less than other local federal employees
because of their decentralized locations and varying office hours.
About 40 percent of federal workers in the region currently use this
transportation benefit. CBO estimates that enacting this legislation
would cost the Postal Service about $6 million in each of the years
2005 and 2006. Beginning in fiscal year 2007, there would be no net
cost from the provision because the Postal Service is required to set
rates to cover its costs, and CBO expects that the next rate increase
will occur in 2006. At that time, it is possible that the Postal
Service would also seek to recover prior unanticipated costs and that
this provision could have no net cost over several years.
Spending subject to appropriation
Transit Pass Transportation Fringe Benefits. To estimate
the bill's impact on nonpostal federal employees in the region,
CBO reviewed the experiences of offices within the three
branches of government that already provide transit benefits
and estimates provided by WMATA. Using that information, CBO
found that in the National Capital Region, approximately 4,000
federal employees are not eligible to receive the tax-free
transportation benefit, and most of those employees work for
the Smithsonian Institution. Using estimates provided by WMATA
and the experiences of agencies that are similar in size and
location to the Smithsonian Institution, we estimate that 75
percent of those employees would participate in the program.
That estimate is higher than the average for the area because
of the limited parking and nearby METRO stations available to
these employees. Hence, we estimate that providing the
transportation benefit to other federal employees that are
currently ineligible to participate would cost approximately $3
million a year or $12 million over the 2005-2008 period,
subject to appropriation of the necessary amounts.
Use of Government Vehicles. Section 2 also would authorize
federal agencies to use government-owned or leased passenger
carriers to transport employees between their offices and
public transportation centers. Under current law, the use of
most government vehicles is only authorized for official
purposes. If an agency chooses to provide additional
transportation services under the bill, the legislation would
require agencies to absorb the costs from funds already
available; use alternative fueled vehicles if possible; and
coordinate transportation routes with other federal agencies.
For this estimate, CBO assumes that section 2 would affect
only agencies in the National Capital Region because it would
require agencies to consult with the National Planning
Commission before offering expanded transportation services.
CBO estimates that allowing federal agencies in the region to
provide transportation from work places to public
transportation centers would have no significant net impact on
the federal budget.
Under the bill, agencies could not provide employees with a
combined monthly benefit from METROcheks and the use of
government-provided transportation of greater than $100 per
month. Consequently, we expect that the authority to use
government vehicles to travel between public transportation
centers and government work places would not be used
extensively.
Intergovernmental and private-sector impact: The bill
contains no intergovernmental or private-sector mandates as
defined by UMRA, and CBO estimates that the bill would have no
significant impact on state, local, or tribal governments.
Estimate prepared by: Federal Costs: Matthew Pickford and
Mark Grabowicz; Impact on State, Local, and Tribal Governments:
Sarah Puro; and Impact on the Private-Sector: Selena Caldera.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
SECTION 1344 OF TITLE 31, UNITED STATES CODE
Sec. 1344. Passenger carrier use
(a)(1) * * *
* * * * * * *
(3) For purposes of paragraph (1)--
(A) the transportation of an individual between such
individual's place of employment and a mass transit
facility pursuant to subsection (g) is transportation
for an official purpose; and
(B) the term ``Federal agency'', as used in such
paragraph, shall be considered to mean a Government
agency (as defined by subsection (g)), to the extent
that the passenger carriers involved are used in the
provision of transportation services under such
subsection.
* * * * * * *
(g)(1) A passenger carrier may be used to transport an
officer or employee of a Government agency between the
officer's or employee's place of employment and a mass transit
facility (whether or not publicly owned) in accordance with
succeeding provisions of this subsection.
(2) A Government agency that provides transportation services
under this subsection shall absorb the costs of such services
using any funds available to such agency, whether by
appropriation or otherwise.
(3) In carrying out this subsection, a Government agency
shall--
(A) to the maximum extent practicable, use
alternative fuel vehicles to provide transportation
services;
(B) to the extent consistent with the purposes of
this subsection, provide transportation services in a
manner that does not result in additional gross income
for Federal income tax purposes; and
(C) coordinate with other Government agencies to
share, and otherwise avoid duplication of,
transportation services provided under this subsection.
(4) For purposes of any determination under chapter 81 of
title 5, an individual shall not be considered to be in the
``performance of duty'' by virtue of the fact that such
individual is receiving transportation services under this
subsection.
(5)(A) The Administrator of General Services, after
consultation with the National Capital Planning Commission and
other appropriate agencies, shall prescribe any regulations
necessary to carry out this subsection.
(B) Transportation services under this subsection shall be
subject neither to the last sentence of subsection (d)(3) nor
to any regulations under the last sentence of subsection
(e)(1).
(6) As used in this subsection--
(A) the term ``Government agency'' means a Federal
agency and the government of the District of Columbia;
and
(B) the term ``passenger carrier'' means a passenger
motor vehicle, aircraft, boat, ship, or other similar
means of transportation that is owned or leased by the
United States Government or the government of the
District of Columbia.
[(g)] (h) As used in this section--
(1) * * *
* * * * * * *
[(h)] (i) Notwithstanding section 410(a) of title 39, this
section applies to the United States Postal Service.