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The original documents are located in Box 16, folder "1974/12/26 HR16006 Government Shipment of Motor Vehicles and Certain Travel and Transportation Allowances" of the White House Records Office: Legislation Case Files at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. Exact duplicates within this folder were not digitized. Digitized from Box 16 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library APPROVED THE WHITE HOUSE ACTION WASHINGTON Last Day: December 27 Poster Colorado December 23, 1974 12/26 MEMORANDUM FOR: THE PRESIDENT Joarchines FROM: KEN COLE 12/30 SUBJECT: Enrolled Bill H.R. 16006 - Government Shipment of Motor Vehicles and Certain Travel and Transportation Allowances Attached for your consideration is H.R. 16006, sponsored by Representative Fisher and 12 others, which grants additional authority relating to the shipment at Government expense of motor vehicles owned by members of the Armed Forces. This bill would also authorize certain travel and transportation allowances to members of the uniformed services incapacitated by illness. OMB recommends approval and provides you with additional background information in its enrolled bill report (Tab A). NSC, Max Friedersdorf and Phil Areeda recommend approval. RECOMMENDATION That you sign H.R. 16006 (Tab B). & FORD APPROVED DEC 26 26 STATES UNITED RESIDENT EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 DEC 2 0 1974 MEMORANDUM FOR THE PRESIDENT Subject: Enrolled Bill H.R. 16006 - Government shipment of motor vehicles and certain travel and transportation allowances Sponsor - Rep. Fisher (D) Texas and 12 others Last Day for Action December 27, 1974 - Friday Purpose Provides authority for the Government to utilize a combination of land and water transportation when shipping vehicles owned by members of the armed forces under certain circumstances; authorizes reshipment or transshipment, at Government expense, of an armed force member's privately owned vehicle in certain cases; authorizes certain travel and transportation allowances for members of the uniformed services incapacitated by illness. Agency Recommendations Office of Management and Budget Approval Department of Defense Approval Discussion Under existing statutory authority, a member of an armed force who is ordered to make a change of permanent station is entitled to shipment of his privately owned vehicle, at Government expense, to his new duty station. Such shipment, however, may only be on a vessel owned, leased or chartered by the U.S., a privately owned American-flag ship, or in the event that neither of those two shipping services is available, by foreign-flag shipping. The enrolled bill 2 would amend the current law to permit a member's vehicle to be transported, at Government expense, by a combination of land and water transportation between customary ports of embarkation and debarkation provided the major portion of the distance covered is in U.S. flag ships and provided the cost of such shipment does not exceed the cost to the U.S. of direct water transportation. Enactment of H.R. 16006 would enable the Government to effectively utilize recent innovations in shipping known as containerization. Cargo may now be transported more efficiently and safely in containers designed to be carried in special containerships and transferred easily between water and surface transportation systems. Enactment of the bill could also result in some savings and added convenience to both the Government and members of the armed forces whose vehicles are shipped and could result in more business for American-flag vessels. For example, there is currently American-flag service between Europe and California ports but not between Europe and ports in Oregon and Washington. There is also no coastal service between California and Oregon and Washington. Because land shipment of members' vehicles, at Government expense, is not authorized under existing law, the armed forces must use foreign-flag shipping when transporting members' vehicles from Europe to ports in Oregon and Washington. The enrolled bill would permit shipment of members' vehicles on American- flag vessels between Europe and California and overland transportation of those vehicles between California and Oregon and Washington. H.R. 16006 would also authorize the reshipment or transship- ment, at Government expense, of vehicles owned by members of the armed forces whenever such transportation is necessitated by a shipping error or whenever a member's orders have been changed after shipment of his vehicle. Since authorities under existing law do not cover these situations, an affected member must pay the cost of any additional transportation himself, even though the shipping error or change in orders did not arise from any action on his part. The enrolled bill would correct this inequity. LIBRARY 3 Finally, the enrolled bill would provide authority for members of the uniformed services who are ill and whose illness is expected to require prolonged hospitalization or treatment to receive travel and transportation allowances for their dependents and household effects. The Comptroller General has ruled that existing statutory authority, which provides travel and transportation allowances to members who are officially reported as dead, injured or in a missing status for more than 29 days, does not apply to members who become ill, even though such illness may be as incapacitating as, an injury. The authorization of travel and transportation benefits under the bill, which is retroactive to January 1, 1974, would remove this anomaly. Wieloud H. Ronemal Assistant Director for Legislative Reference Enclosures EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 DEC 2 0 1974 MEMORANDUM FOR THE PRESIDENT Subject: Enrolled Bill H.R. 16006 - Government shipment of motor vehicles and certain travel and transportation allowances Sponsor - Rep. Fisher (D) Texas and 12 others Last Day for Action December 27, 1974 - Friday Purpose Provides authority for the Government to utilize a combination of land and water transportation when shipping vehicles owned by members of the armed forces under certain circumstances; authorizes reshipment or transshipment, at Government expense, of an armed force member's privately owned vehicle in certain cases; authorizes certain travel and transportation allowances for members of the uniformed services incapacitated by illness. Agency Recommendations Office of Management and Budget Approval Department of Defense Approval Discussion Under existing statutory authority, a member of an armed force who is ordered to make a change of permanent station is entitled to shipment of his privately owned vehicle, at Government expense, to his new duty station. Such shipment, however, may only be on a vessel owned, leased or chartered by the U.S., a privately owned American-flag ship, or in the event that neither of those two shipping services is available, by foreign-flag shipping. The enrolled bill FORD LIGRARY 03 THE WHITE HOUSE ACTION MEMORANDUM WASHINGTON LOG NO.: 802 Date: FOR ACTION: December NSC/S 20, 1974 Mr Bovery oh ok Time: 4:00 p.m. CC (for information) : Warren Hendriks Max Friedersdorf Jerry Jones Phil Areeda ok FROM THE STAFF SECRETARY DUE: Date: Monday, December 23 Time: noon SUBJECT: Enrolled Bill H.R. 16006 - Government Shipment of Motor Vehicles and Certain Travel and Transportation Allowances ACTION REQUESTED: For Necessary Action x For Your Recommendations Prepare Agenda and Brief Draft Reply X For Your Comments Draft Remarks REMARKS: Please return to Judy Johnston, Ground Floor, West Wing PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED. SEAL R. FORD LIBRARY If you have any questions or if you anticipate a delay in submitting the required material, please K. R. COLE, JR. telephone the Staff Secretary immediately. For the President DEPART OF DEPARTMENT OF THE NAVY OFFICE OF THE SECRETARY WASHINGTON, D. C. 20350 UNITED AMERICA December 17, 1974 Dear Mr. Ash: Your transmittal sheet dated December 16, 1974, enclosing a facsimile of an enrolled bill of Congress, H.R. 16006, "To amend section 2634 of title 10, United States Code, relating to the shipment at Government expense of motor vehicles owned by members of the armed forces, and to amend chapter 10 of title 37, United States Code, to authorize certain travel and transportation allowances to members of the uniformed services incapacitated by illness," and requesting the comments of the Department of Defense, has been received. The Department of the Navy has been assigned the responsibility for the pre- paration of a report expressing the views of the Department of Defense. The purpose of H.R. 16006 is to amend section 2634 of title 10, United States Code, relating to the shipment at government expense of motor vehicles owned by members of the armed forces, and section 554 of title 37, United States Code, relating to certain travel and transportation allowances. Section 2634 of title 10 currently authorizes the shipment at government expense of a privately owned vehicle of a member of the armed forces executing change of permanent station orders, but such shipment must be (1) on a vessel owned, leased, or chartered by the United States; (2) by privately owned American shipping services; or (3) by foreign-flag shipping services if American-flag services are not reasonably available. Section 1 of H.R. 16006 would authorize the shipment of a privately owned vehicle by a combination of land and water transportation if (1) the cost of shipment by that combination does not exceed the cost of shipping the vehicle from the customary port of embarkation to the customary port of debarkation by water transportation and (2) the major portion of the distance which the vehicle is shipped by a combination of land and water transportation is on American- flag vessels. Section 2 of 16006 would authorize the reshipment or transshipment of a privately owned vehicle at government expense if such reshipment or trans- shipment is necessitated by a shipping error or because orders directing a change of permanent station are cancelled, revoked, or modified after their receipt by the member. Sections 3 and 4 of H.R. 16006 would authorize transportation for the de- pendents and household and personal effects of a member of a uniformed service on active duty who is officially reported as ill and whose illness is expected to require prolonged hospitalization or treatment. The house- hold and personal effects shipped pursuant to this authority could include, in addition to other authorized weight allowances, one privately owned motor BECEIVED vehicle. Section 554 of title 37, United States Code, presently provides the same entitlement for transportation of the dependents and household and personal effects of a member of a uniformed service on active duty who is reported as dead, injured, or absent for a period of more than 29 days in a missing status. The approval of this legislation would result in no increase in the budgetary requirements of the Department of Defense. The Department of the Navy, on behalf of the Department of Defense, re- commends the approval of H.R. 16006. Sincerely yours, D S Botter D. S. Potter Honorable Roy L. Ash Under Secretary of the Navy Director, Office of Management and Budget Washington, D.C. 20503 2 THE WHITE HOUSE WASHINGTON December 21, 1974 MEMORANDUM FOR: WARREN HENDRIKS FROM: MAX L. FRIEDERSDORF SUBJECT: Action Memorandum - Log No. 802 Enrolled Bill H.R. 16006 - Government Shipment of Motor Vehicles and Certain Travel and Transportation Allowances The Office of Legislative Affairs concurs in the attached proposal and has no additional recommendations. Attachment 720 THE WHITE HOUSE ACTION MEMORANDUM WASHINGTON LOG NO.: 802 Date: December 20, 1974 Time: 4:00 p.m. FOR ACTION: NSC/S cc (for information) Warren Hendriks Max Friedersdorf Jerry Jones Phil Areeda FROM THE STAFF SECRETARY DUE: Date: Monday, December 23 Time: noon SUBJECT: Enrolled Bill H.R. 16006 - Government Shipment of Motor Vehicles and Certain Travel and Transportation Allowances ACTION REQUESTED: For Necessary Action X For Your Recommendations Prepare Agenda and Brief Draft Reply X For Your Comments Draft Remarks REMARKS: Please return to Judy Johnston, Ground Floor, West Wing but 12/23 PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED. If you have any questions or if you anticipate a delay in submitting the required material, please Nondribe telephone the Staff Secretary immediately. For the Presentint Calendar No. 1266 93D CONGRESS } SENATE REPORT 2d Session No. 93-1339 PAY ADJUSTMENTS FOR CERTAIN INDIVIDUALS AD- VERSELY AFFECTED BY 1972 FEDERAL PAY COM- PARABILITY ADJUSTMENT DECEMBER 12, 1974.-Ordered to be printed Mr. McGEE, from the Committee on Post Office and Civil Service, submitted the following REPORT [To accompany H.R. 15067] The Committee on Post Office and Civil Service, to which was re- ferred the bill (H.R. 15067) to prevent reductions in pay for any officer or employee who would be adversely affected as a result of im- plementing Executive Order 11777, having considered the same, re- ports favorably thereon without amendment and recommends that the bill do pass. The purpose of H.R. 15067 is to correct an unfair situation appli- cable to some Federal employees whose rates of pay have been reduced because of unusual circumstances involving implementation of Execu- tive Order 11777 of April 12, 1974. STATEMENT This bill stems from the August 31, 1972 message to the Congress from President Nixon in which he announced his decision to delay for three months the October, 1972, pay adjustment due under the Federal Pay Comparability Act of 1970. Rates of pay under the statutory pay systems were thereby adjusted in January, 1973, but the delay was successfully challenged in the Federal Courts. Following a January 25, 1974, decision by the United States Court of Appeals for the District of Columbia which held the delay to be erroneous, the President issued Executive Order 11777 on April 12, 1974, fixing the effective date of the pay adjustment at October 1, 1972, and providing for payment of salaries due for the three month period to employees and former employees. 38-010 2 3 In a few instances, where an employee transferred from one pay effective date of the pay adjustment. (Examples of such cases are system to another during the period between October 1, 1972, and shown in Attachment No. 2 of Civil Service Commission Bulletin No. January 1, 1973, the reconstruction of pay pursuant to the Executive 531-66, May 9, 1974, a copy of which is-enclosed.) H.R. 15067 would Order has resulted in a net loss rather than an increase in pay. remedy these situations. The Committee believes, as does the Administration, that no em- The Civil Service Commission is in complete agreement with H.R. ployee should suffer a reduction in salary as a result of these unusual 15067, as we believe, given the circumstances of this extremely com- circumstances. The bill would rectify such instances. Its effect would plex situation, that it would be unfair to require any employee to be to have an employee's pay adjusted to the step and grade at which suffer a loss of pay as a result of this change in effective date. There- his pay was fixed when the transfer from one pay system to another fore, we urge that your committee give this bill favorable considera- was made, retroactive to the date of the personnel action. This adjusted tion. rate of pay would also be the base for any subsequent pay actions The Office of Management and Budget advises that, from the stand- affecting him. point of the Administration's program, there is no objection to the submission of this report. COMMITTEE ACTION By direction of the Commission. No hearings were held on the bill, which was considered by the Full Sincerely yours, L. J. ANDOLSEK, Committee and ordered reported on December 12, 1974. Acting Chairman. COST COMPTROLLER GENERAL OF THE UNITED STATES, While time has not permitted the thorough review of personnel Washington, D.C., November 14, 1974. actions necessary to provide a reliable estimate of the total cost in- Hon. GALE McGEE, volved in implementing H.R. 15067, the Civil Service Commission Chairman, Committee on Post Office and Civil Service, has estimated that only a few hundred employees would be covered by U.S. Senate the bill. The cost, therefore, would be small. DEAR MR. CHAIRMAN: Your letter of October 21, 1974, requested our report on H.R. 15067, 93d Congress, 2d Session, an act to prevent AGENCY REPORTS reductions in pay for any officer or employee who would be adversely The reports of the Civil Service Commission and Comptroller Gen- affected as a result of implementing Executive Order 11777, April 12, 1974. eral follow (the examples of cases covered by the bill referred to in The purpose of H.R. 15067 is the same as that of S. 3892, 93d Con- the Commission's views appear in House Report No. 93-1384) : gress, 2d Session, which was the subject of our report to you dated U.S. CIVIL SERVICE COMMISSION, October 18, 1974, B-167266. However, H.R. 15067 would prevent a Washington, D.C., November 4, 1974. reduction in pay resulting from Executive Order 11777 for any officer Hon. GALE W. McGEE, or employee of the United States, whereas S. 3892 would prevent such Chairman, Committee on Post Office and Civil Service, U.S. Senate, reductions only for those officers and employees who became subject Washington, D.C. to the General Schedule during the retroactive period. In our report DEAR MR. CHAIRMAN: This letter is in further response to your of October 18, 1974, we stated that we had no objection to the purpose request for the Commission's views on H.R. 15067, a bill "To prevent of S. 3892, but we believed that it would be inequitable to not prevent reductions in pay for any officer or employee who would be adversely reductions for all employees who would have their pay reduced as a affected as a result of implementing Executive Order 11777." result of Executive Order 11777. Accordingly, we recommended that Executive Order 11777 retroactively changed the effective date of the S. 3892 be revised along the lines suggested by the Civil Service Com- January 1973 pay adjustment for the General Schedule and the other mission in its report to you on that bill. statutory pay systems to October 1972. This change in effective date Since the provisions of H.R. 15067 are similar to those suggested by was ordered by President Nixon in accordance with a decision by the the Commission, we have no objection to favorable consideration of United States Court of Appeals for the District of Columbia Circuit, that act. which held that the delay of the pay adjustment from October 1972 to Sincerely yours, January 1973 was erroneous. R. F. KELLER, As a result of Executive Order 11777, almost every employee who Deputy Comptroller General of the United States. occupied a position under one of the statutory pay systems between October 1972 and January 1973 is entitled to a retroactive payment. In a few cases, however, because of the workings of various pay laws and regulations, employees will lose money as a result of this change in S.R. 1339 S.R. 1339 93D CONGRESS } HOUSE OF REPRESENTATIVES REPORT 2d Session No. 93-1224 GRANTING ADDITIONAL AUTHORITY RELATING TO THE SHIPMENT AT GOVERNMENT EXPENSE OF MOTOR VEHICLES OWNED BY MEMBERS OF THE ARMED FORCES JULY 25, 1974.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed Mr. FISHER, from the Committee on Armed Services, submitted the following REPORT [To accompany H.R. 16006] The Committee on Armed Services, to whom was referred the bill (H.R. 16006) to amend section 2634 of title 10, United States Code, relating to the shipment at Government expense of motor vehicles owned by members of the armed forces, and to amend chapter 10 of title 37, United States Code, to authorize certain travel and transpor- tation allowances to members of the uniformed services incapacitated by illness, having considered the same, report favorably thereon with- out amendment and recommend that the bill do pass. PURPOSE OF THE BILL At present, the authorization contained in section 2634 of title 10, United States Code, provides that the shipment of private vehicles owned by members of the armed services executing a permanent change of station, can be accomplished at government expense only (1) on a vessel owned, leased or chartered by the United States, (2) by privately-owned American shipping services; or (3) by foreign- flag shipping services if American-flag services are not reasonably available. This legislative proposal would authorize the services to utilize surface transportation in combination with water transporta- tion for moving these vehicles if the cost of this combination would not exceed the cost of direct water transportation between customary ports of embarkation and debarkation, and if the major portion of the distance in such combined transportation is on American-flag vessels. For the purposes of this legislation, a "customary port" is considered to be one which is closest or most convenient to the member's duty 38-006 2 3 station from or to which ocean transportation, either breakbulk or Section 3 and Section 4 of the bill incorporate the provisions of H.R. container, is available. 15521 which was initially referred to the Committee. This legislative Additionally, authority for the reshipment or transshipment of these proposal provides the transportation and travel entitlements spelled vehicles is provided when an error in shipping has occurred, or when out in section 554 of title 37, United States Code, to those military per- orders involving the permanent change of station have been canceled, sonnel who are ill. At present; these entitlements are available only to revoked, or modified after receipt by the serviceman. military personnel who are dead, injured, or absent for a period of Section 554 of title 37, United States Code, provides certain trans- more than 29 days in a missing status. portation and travel entitlements for military personnel who are dead, A recent Comptroller General opinion (Decision B-145471, 49 injured, or absent for more than 29 days in a missing status. This Comp. Gen. 101 (1969)) ruled that the present language would not legislation would also extend those covered to include those military encompass those military personnel who have contracted an illness, personnel who are ill, when prolonged hospitalization or treatment even though it requires prolonged hospitalization and results in a sim- is anticipated in conjunction with this illness. ilar degree of incapacitation as for those who are injured. This legisla- tion, which is retroactive to January 1, 1974, rectifies this anomaly. BACKGROUND CLEAN BILL Section 1 of the legislation incorporates a proposal introduced and referred to the Committee initially as H.R. 5787, and in identical The legislation was originally referred to House Armed Services form as H.R. 7757. The authorization provided in that section will Committee legislative Subcommittee No. 2 as H.R. 5787, H.R. 7757 allow the services to recognize and benefit by recent innovations in (identical bills) and H.R. 15521. The clean bill incorporates the pro- maritime shipment techniques known as containerization. This process, visions of each of these bills in toto, and also adopts section (d) of the which is used widely, provides for the cargo to be loaded into pro- Department of Defense's proposed substitute bill on this same subject. tective containers at the point of origin, then moved by any one of Subsequent to hearings and a full consideration of the appropriate several different modes of transportation in combination with the sea form for the legislation under consideration, a clean bill was intro- portion of the journey. Presently, the military services may not con- duced as H.R. 16006. tract with the carriers who utilize this process as it involves a degree FISCAL DATA of non-maritime movement, which cannot be paid for by the govern- ment under current law. It is intended that this additional authority No additional funds are required by the Department of Defense for will allow the services to benefit through increased competition and this year or ensuing years. Financing would be absorbed within exist- the resulting lowered rates, improved services and increased incentive ing available resources. Section 1 of the bill will not result in any in- for efficient service. This benefit will accrue without causing any addi- creased costs. It is estimated that the annual cost of the provision in tional cost in the movement of these vehicles, as well as avoiding any Section 2 will be approximately $50,000 annually. As to the fiscal im- adverse impact on the U.S. maritime industry from this use of alter- pact of Sections 3 and 4 of the bill, the Department of Defense was native modes of transportation by restricting the use of this authority unable to provide precise cost figures. However, these provisions will to combinations of transportation involving American-flag services. provide no change in the Department's budgetary requirements. Section 2 of the bill is meant to terminate a highly inequitable situation which occasionally arises in the movement of these private DEPARTMENTAL POSITION vehicles owned by servicemen and women upon their permanent change of station. In the movement of these vehicles, situations occur in which The Department of Defense supports this legislation and the Office the vehicle is simply shipped to an incorrect destination, or else shipped of Management and Budget interposes no objection, as indicated in the to a destination in accord with a serviceman's initial orders, which correspondence below: are thereafter canceled, reyoked, or modified. When such an occasion DEPARTMENT OF THE NAVY, arises, the Comptroller General (in Decision B-156892; March 4, OFFICE OF LEGISLATIVE AFFAIRS, 1966; 45 Comp. Gen. 544, 547) has determined that the present Washington, D.C., November 14, 1973. Hon. F. EDWARD HÉBERT, authority contained in section 2634 of title 10 does not allow this stranded vehicle to be reshipped or transshipped at government Chairman, Committee on Armed Services, House of Representatives, expense. Therefore, the serviceman himself must pay the cost of this Washington, D.C. reshipment or transshipment, although the problem was not of his DEAR MR. CHAIRMAN: Your request for comment on H.R. 5787 a own making. The frequency of such circumstances is just under 60 bill "To amend section 2634 of title 10, United States Code, relating a year on the average. Section 2 of the bill specifically authorizes the to the shipment at Government expense of motor vehicles owned by reshipment and transshipment of these vehicles on such occasions. members of the armed forces," has been assigned to this Department 4 5 by the Secretary of Defense for the preparation of a report expressing the views of the Department of Defense. land transportation at their own expense. Either choice can result in The purpose of this bill is to provide the military departments the considerable hardship to the members involved. Nevertheless, the gov- authority to use land transportation in combination with water trans- ernment may not arrange for the shipment of such vehicles by land portation for movement of privately owned vehicles if the cost of such transportation at its expense because the Comptroller General of the combined transportation would not exceed the cost of direct water United States has ruled-in his decision B-158097 of March 12, 1971 transportation between customary ports of embarkation and debarka- (50 Comp. Gen. 615)-that 10 U.S.C. 2634 does not authorize the tion and if the major portion of such combined transportation is on movement of privately owned vehicles between ports by land trans- American-flag vessels. Section 2634 of title 10, United States Code, portation at government expense in such situations. The enclosed sub- currently authorizes the shipment at government expense of privately stitute draft bill would authorize such movement at government owned vehicles of members of the armed services executing change of expense. permanent station orders, but such shipment must be (1) on a vessel In those instances in which several ports are grouped closely in one owned, leased, OF chartered by the United States; (2) by privately geographic area, the ships of any one carrier usually call at only one or owned American shipping services; or (3) by foreign-flag shipping a few of those ports rather than at each one. As a result, adequate serv- services if American-flag services are not reasonably available. ice is available only if the military services can use all of the ports in As a matter of general policy, the military departments are required the area. An example of this situation is the location of the German to evaluate all modes of transportation in order to select the most ports of Hamburg, Bremen, and Bremerhaven within approximately economical mode available. Although passage of H.R. 5787 would per- 80 miles of each other. The ships of any particular U.S.-flag carrier mit greater flexibility in logistical planning and might result in some serving Germany usually call at only one of those three ports. At the cost-savings, the Department of the Navy, on behalf of the Depart- present time, members of the armed services deliver or pick up their ment of Defense, recommends the enactment of the enclosed substitute vehicles only at Bremerhaven, where there are extensive processing draft bill. facilities. Since the military services do not know in advance how many The substitute draft bill would authorize shipment of privately members will be delivering their vehicles for shipment at any partic- owned vehicles by land transportation or by any combination of water ular time or which ship will be available to transport any particular and land transportation if the cost of such transportation is the same vehicle, the services are unable to direct the member to take his vehicle as or less than the cost of direct water transportation from the cus- to Bremen or Hamburg rather than to Bremerhaven. To obtain con- tomary port of embarkation to the customary port of debarkation, if sistently cheap and adequate service, however, it is sometimes necessary the use of such transportation is required to permit the utilization of to move a privately owned vehicle overland from the collection point American-flag shipping, or if there is no direct water transportation in Bremerhaven to the ports of Bremen or Hamburg for shipment. reasonably available from the customary port of embarkation to the Such movement is possible at present only because the carriers make customary port of debarkation. This expanded authority is desirable no charge for this overland shipment in addition to their charge for because of the advent of the containership system and its replacement the subsequent water transportation. Should a carrier calling only at: of the traditional breakbulk ship. The development of the intermodal Bremen or Hamburg decide to levy an additional charge for the over- container and the containership specially designed to earry it has land shipment, the aforementioned Comptroller General's opinion made feasible the substitution of land transportation for direct water would require the military services to stop moving vehicles from Brem- transportation since both land and containership tranportation sys- erhaven to Bremen or Hamburg and instead to use on occasion a more tems are designed to carry the container efficiently and to enable trans- expensive American-flag carrier calling at Bremerhaven or even a for- fer between them without risk to the safety of the cargo. eign-flag carrier calling at Bremerhaven if no American-flag carrier Because the containership system has brought an increased reliance were reasonably available at Bremerhaven. Enactment of the enclosed on feeder systems, implemented either by water or land transporta- substitute draft bill, therefore, would not only promote cost reduction tion, to collect and distribute cargo at major ports of call, the number but also would improve this country's international balance of pay- of port calls by transoceanic ships has decreased. Although the mili- ments by promoting the continued use of American-flag shipping. tary services have recognized the reduction in port calls by changing The services of U.S. flag-carriers could be utilized in an additional the location at which service members pick up and deliver privately situation if the enclosed substitute draft bill were enacted. For exam- owned vehicles, on occasion vehicles are delivered by their owners for ple, there is a U.S. flag service between Europe and California ports shipment at a port to which service suddenly ends, either permanently but there is no American-flag service from Europe to ports in Washing- or for an extended period of time, because of an unannounced change ton and Oregon. Since there is also no coastal service between Cali- in schedule, a strike, port congestion, or a catastrophe. When vehicles fornia and Washington or Oregon and since the aforementioned are frustrated at a particular port on such an occasion, their owners Comptroller General's opinion precludes the overland shipment of pri- must either leave their vehicles at that port until service is resumed vately owned vehicles at government expense between ports in Cali- or arrange for the shipment of their vehicles to a substitute port by fornia and Washington or Oregon, the military services must utilize 6 7 foreign-flag carriers between Europe and Washington or Oregon. The orders, it appears that it would have done SO in clear and unmistak- substitute draft bill would permit the shipment of privately owned able language." (Decision B-156892; March 4, 1966; 45 Comp. Gen. vehicles on American flag-vessels from Europe to California and the 544, 547) overland shipment of those vehicles from California to Washington Enactment of H.R. 5787 or of the substitute draft bill will result in and Oregon. no increase in the Department of Defense budgetary requirements. The shipment of privately owned vehicles by a combination of land This report has been coordinated within the Department of Defense and water transportation as authorized by the substitute draft bill in accordance with procedures prescribed by the Secretary of Defense. would have other cost-saving effects. In some cases it would be less The Office of Management and Budget advises that, from the stand- expensive to ship vehicles from Europe to New Orleans by water trans- point of the Administration's program, there is no objection to the portation and then from New Orleans to the West Coast of the con- presentation of this report on H.R. 5787 for the consideration of the tinental United States by land transportation rather than to ship those Committee. vehicles solely by water transportation from Europe to West Coast For the Secretary of the Navy. ports. In addition, it may be less expensive to ship vehicles from Alaska Sincerely yours, to the continental United States overland or by a combination land E. K. SNYDER, and water route rather than by an all-water route. Rear Admiral, USN, Chief of Legislative fairs. The substitute draft bill would also authorize the use of air transpor- Enclosure: Substitute draft bill. tation or land transportation or a combination of air, land, or water transportation if either the customary port of embarkation or the A BILL To amend section 2634 of title 10, United States Code, relating to the shipment at Government expense of motor vehicles owned by members of the armed forces customary port of debarkation is not accessible by water. Such author- ization is needed because during part of each year ships cannot pick up Be it enacted by the Senate and House of Representatives of the or deliver privately owned vehicles at ports which, like those in Lab- United States of America in Congress assembled, That section 2634 of rador, are icebound. title 10, United States Code, is amended by adding the following new Furthermore, the substitute draft bill would permit the shipment subsections: of privately owned vehicles by air or by a combination of air, land, or (c) When the transportation of a motor vehicle is authorized by water transportation if such means of shipment is the least expensive subsection (a), such motor vehicle may be shipped between two ports— method available. Authorization of movement by air transportation '(1) by land transportation or by any combination of water when such movement is less costly than movement by surface trans- and land transportation if- portation is in accord with the Department of Defense directive re- '(a) there is no water transportation reasonably available quiring utilization of that means of transportation which meets De- from the customary port of embarkation, partment of Defense requirements satisfactorily at the lowest over-all (b) such transportation is required to utilize United States cost from origin to destination. flag shipping, or Finally, the substitute draft bill would authorize the reshipment or (c) the cost of such transportation is the same as or less transshipment of a privately owned vehicle at government expense if than the cost of direct water transportation from the cus- such reshipment or transshipment is necessitated by a shipping error tomary port of embarkation to the customary port of or because orders directing a change of permanent station are can- debarkation; celled, revoked, or modified after their receipt by the member. (2) by air or land transportation or by any combination of Members proceeding under change of station orders occasionally re- air, water, or land transportation if either the customary port of ceive revisions in those orders directing the members to proceed to embarkation or the customary port of debarkation is not accessible duty stations other than those originally specified. In some instances, by water; members proceeding under orders between the United States and over- (3) by air transportation or by any combination of air, water, seas areas have already shipped a privately owned vehicle or turned or land transportation if the cost of such transportation is less it in to a terminal for shipment when those members receive amended than the cost of direct water transportation or a combination of or cancelled orders. However, 10 U.S.C. 2634 does not explicitly au- water and land transportation from the customary port of em- thorize an additional movement of a vehicle at government expense barkation to the customary port of debarkation." incident to such a change in orders. Moreover, the Acting Comptroller (d) When there has been a shipping error, or when orders directing General of the United States has ruled that present regulations may a change of permanent station have been cancelled, revoked, or modi- not be revised to permit this additional movement because "[h]ad fied after receipt by the member, a motor vehicle transported pursuant Congress intended to authorize the reshipment or transshipment of a to this section may also be reshipped or transhipped in accordance with privately owned vehicle because of the cancellation or revocation of this section." 8 9 DEPARTMENT OF THE NAVY, OFFICE OF LEGISLATIVE AFFAIRS, Washington, D.C., July 18, 1974. Hon. F. EDWARD HÉBERT, Chairman, Committee on Armed Services, House of Representatives, Washington, D.C. DEAR MR. CHAIRMAN: Your request for comment on H.R. 15521, a bill "To amend chapter 10 of title 37, United States Code, to authorize certain travel and transportation allowances to members of the uni- formed services incapacitated by illness," has been assigned to this Department by the Secretary of Defense for the preparation of a report expressing the views of the Department of Defense. The purpose of H.R. 15521 is to amend section 554 of title 37, United States Code, to authorize transportation for the dependents and house- hold and personal effects of a member of a uniformed service on active duty who is officially reported as ill and whose illness is expected to addition to other authorized weight allowances, one privately owned motor vehicle. Section 554 presently provides the same entitlement for transportation of the dependents and household and personal effects of a member of a uniformed service on active duty who is reported as dead, injured, or absent for a period of more than 29 days in a missing status. troller General, in his decision B-145471 [49 Comp. 101 (1969) has CHANGES IN EXISTING LAW In compliance with clause 3 of rule XIII of the Rules of the House of Representatives, there is printed below in parallel columns the text of provisions of existing law which would be repealed or amended by the various provisions THE BILL AS REPORTED require prolonged hospitalization or treatment. The household and personnel effects shipped pursuant to this authority could include, in Be it enacted by the Senate and House of Representa- tives of the United States of America in Congress assem- bled, That section of title 10, United States Code, (1) striking out the word "or" at the end of clause (2) striking out the period at the end of clause (3) and inserting in lieu thereof a semicolon and the word (3) adding at the end thereof a new clause as (4) in the case of movement, the major portion of which is by shipping services described in clause (1) or (2), by other surface transportation between customary ports of embarkation and debarkation if such means of transport does not exceed the cost to the United States of other authorized means.". is amended by- (2) "or"; and follows: Although an illness may be as incapacitating as an injury, the Comp- held that a member of a uniformed service who becomes ill or contracts a disease which does not result in his death while in an active duty status is not entitled to the benefits of 37 U.S.C. 554 because that section does not specifically refer to disease or illness. The Department of the Navy, on behalf of the Department of Defense, supports enactment of H.R. 15521. In accordance with section 554 (c), it is anticipated that the entitle- ment in cases of "illness" would be administered in the same way as is the present entitlement in cases of "injury." The limited time available for review of H.R. 15521 precludes the presentation of any precise cost data. However, readily available in- formation indicates that enactment of the bill would result in no increase in the budgetary requirements of the Department of Defense. This report has been coordinated within the Department of Defense in accordance with procedures prescribed by the Secretary of Defense. The Office of Management and Budget advises that, from the stand- EXISTING LAW point of the Administration's program, there is no objection to the presentation of this report on H.R. 15521 for the consideration of the Committee. For the Secretary of the Navy. Deputy Chief. of the bill as reported. Section 2634 of title 10, United States Code Sincerely yours, § 2634. Motor vehicles; for members on change of permanent station (a) When a member of an armed force is ordered to E. H. WILLETT, make a change of permanent station, one motor vehicle owned by him and for his personal use or the use of his dependents may, unless a motor vehicle owned by him was transported in advance of that change of permanent sta- tion under section 406(h) of title 37, be transported, at the expense of the United States, to his new station or such other place as the Secretary concerned may authorize- (1) on a vessel owned, leased, or chartered by the (2) by privately owned American shipping services; (3) by foreign-flag shipping services if shipping United States; services described in clauses (1) and (2) are not rea- Captain, U.S. Navy, sonably available. COMMITTEE POSITION or The Committee on Armed Services on July 25, 1974, a quorum being present, unanimously endorsed enactment of the bill. H.R. 1224 H. Rept. 93-1224-2 EXISTING LAW THE BILL AS REPORTED When the Secretary concerned, or his designee, determines that a replacement for that motor vehicle is necessary for reasons beyond the control of the member and is in the in- terest of the United States, and he approves the transpor- tation in advance, one additional motor vheicle of the member may be SO transported. (b) In this section, "change of permanent station" means the transfer or assignment of a member of the armed forces from one permanent station to another. It includes the change from home or from the place from which or- 10 dered to active duty to first station upon appointment, call to active duty, enlistment, or induction, and from last duty station to home or to the place from which ordered to ac- tive duty upon separation from the service, placement upon the temporary disability retired list, release from active duty or retirement. It also includes an authorized change in home yard or home port of a vessel. Added Pub.L. 87- 651, Title I, § 111 (b), Sept. 7, 1962, 76 Stat. 510, amended Pub.L. 88-431, § 1(b), Aug. 14, 1964, 78 Stat. 439; Pub.L. 89-101, § 1(1), July 30, 1965, 79 Stat. 425. SEC. 2. Section 2634 of title 10, United States Code, is further amended by adding at the end thereof the follow- ing new subsection: (c) When there has been a shipping error, or when orders directing a change of permanent station have been canceled, revoked, or modified after receipt by the member, a motor vehicle transported pursuant to this section may also be reshipped or transshipped in accordance with this section." Section 554 of title 37, United States Code § 554. Travel and transportation; dependents; house- hold and personal effects; trailers; additional movements; motor vehicles; sale of bulky items; claims for proceeds; appropriation chargeable (a) In this section, "household and personal effects" and "household effects" may include, in addition to other au- 11 thorized weight allowances, one privately owned motor vehicle which may be shipped at United States expense. Under regulations prescribed by the Secretaries concerned, and in place of the transportation of household and per- sonal effects, a dependent, who would otherwise be entitled to transportation of household and personal effects under this section, may transport a house trailer or mobile dwell- ing within and between the areas specified in section 409 of this title for use as a residence by one of the following means— EXISTING LAW THE BILL AS REPORTED (1) transport it and be reimbursed by the United States; (2) deliver it to an agent of the United States for transportation by the United States or by commercial means; or (3) have it transported by commercial means and be reimbursed by the United States. If a trailer or dwelling is transported under clause (2) or (3) of this subsection, that transportation may include one 12 privately owned motor vehicle which may be shipped at United States expense. Transportation, and incidental costs, authorized by this section shall be at United States expense without any cost limitation, and any payment au- thorized may be made in advance of the transportation concerned. (b) Transportation (including packing, crating, dray- SEC. 3. (1) Subsection (b) of section 554, title 37, age, temporary storage, and unpacking of household and United States Code, is amended by- personal effects) may be provided for the dependents and (A) inserting "ill," before "or absent for a period household and personal effects of a member of a uni- of more than 29 days in a missing status"; and formed service on active duty (without- regard to pay (B) striking out " (if injured) in paragraph (3) grade) who is officially reported as dead, injured, or and inserting in lieu thereof (if injured or ill)". absent for a period of more than 29 days in a missing (2) Subsection (c) of section 554, title 37, United status- States Code, is amended by inserting "or ill" before (1) to the member's official residence of record; "status,", (2) to the residence of his dependent, next of kin, or other person entitled to custody of the effects, under regulations prescribed by the Secretary con- cerned; or (3) on request of the member (if injured), or his dependent, next of kin, or other person described in clause (2), to another location determined in ad- vance or later approved by the Secretary concerned, or his designee. When he considers it necessary, the Secretary concerned may, with respect to the household and personal effects of a member who is officially reported as absent for a period of more than 29 days in a missing status, authorize the nontemporary storage of those effects for a period of one year, or longer when justified. In addition, he may author- ize additional movements of, and prescribe transporta- 13 tion, for, the dependents and household and personal effects, or the dependents and house trailer or mobile dwelling, of a member who is officially reported as absent for a period of more than one year in a missing status. (c) When a member described in subsection (b) of this SEC. 4. The amendments made by section 3 of this Act section is in an injured status, transportation of depend- shall apply with respect to members of the uniformed ents and household and personal effects authorized by services incapacitated by illness on or after January 1, this section may be provided only when prolonged hos- 1974. pitalization or treatment is anticipated. 14 SUMMARY PURPOSE OF THE BILL To provide the Department of Defense with authority to utilize surface transportation in the shipment of vehicles owned by military personnel executing a permanent change of station, as long as the cost of the transportation using a combination of sea and surface trans- portation does not exceed the cost of direct water transport, and if the major portion of this combination transportation is on American-flag vessels. To provide the Department of Defense authority to reship or trans- ship vehicles owned by military personnel when an error in shipping has occurred, or when orders involving the permanent change of sta- tion have been cancelled, revoked or modified after receipt by the serviceman. To provide certain travel and transportation entitlements to those military personnel who are ill, when prolonged hospitalization or treatment is anticipated in conjunction with the illness, in the same manner that these entitlements are presently allowed to personnel dead, injured or absent for a period of more than 29 days in a missing status. FISCAL DATA The enactment of this legislation will result in no increase in the budgetary requirements of the Department of Defense. DEPARTMENTAL POSITION The Department of Defense supports this legislation and the Office of Management and Budget interposes no objection. COMMITTEE POSITION The Committee on Armed Services on July 25, 1974, a quorum being present, unanimously endorsed enactment of the bill. LIBRARY REALTH H. R. 16006 Ainety-third Congress of the United States of America AT THE SECOND SESSION Begun and held at the City of Washington on Monday, the twenty-first day of January, one thousand nine hundred and seventy-four An Act To amend section 2634 of title 10, United States Code, relating to the shipment at Government expense of motor vehicles owned by members of the armed forces, and to amend chapter 10 of title 37, United States Code, to authorize certain travel and transportation allowances to members of the uniformed services incapacitated by illness. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 2634(a) of title 10, United States Code, is amended by- (1) striking out the word "or" at the end of clause (2) ; (2) striking out the period at the end of clause (3) and insert- ing in lieu thereof a semicolon and the word "or"; and (3) adding at the end thereof a new clause as follows: (4) in the case of movement, the major portion of which is by shipping services described in clause (1) or (2), by other surface transportation between customary ports of embarkation and debarkation if such means of transport does not exceed the cost to the United States of other authorized means.". SEC. 2. Section 2634 of title 10, United States Code, is further amended by adding at the end thereof the following new sub- section: "(c) When there has been a shipping error, or when orders direct- ing a change of permanent station have been canceled, revoked, or modified after receipt by the member, a motor vehicle transported pursuant to this section may also be reshipped or transshipped in accordance with this section. SEC. 3. (1) Subsection (b) of section 554, title 37, United States Code, is amended by (A) inserting "ill," before "or absent for a period of more than 29 days in a missing status-"; and (B) striking out "(if injured)" in paragraph (3) and insert- ing in lieu thereof (if injured or ill)". (2) Subsection (c) of section 554, title 37, United States Code, is amended by inserting "or ill" before "status,". SEC. 4. The amendments made by section 3 of this Act shall apply with respect to members of the uniformed services incapacitated by illness on or after January 1, 1974. Speaker of the House of Representatives. Vice President of the United States and President of the Senate. December 16, 1974 Dear Mr. Director: The following bills were received at the White House on December 16ths S.J. Res. 263 VII.R. 14349 H.R. 1355 VE.R. 15067 H.R. 5056 P.R. 158186 H.R. 7072 H.R. 16006 M.R. 7077 H.R. 16424 H.R. 11013 Please let the President have reports and recommendations as to the approval. of these bills as soon as pessible. Sincerely, Robert D. Linder Chief Executive Clerk The Honorable Roy L. Ash Director Office of Management and Budget Washington, D. C. BERALD 7020

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    "ocrText": "The original documents are located in Box 16, folder \"1974/12/26 HR16006 Government\nShipment of Motor Vehicles and Certain Travel and Transportation Allowances\" of the\nWhite House Records Office: Legislation Case Files at the Gerald R. Ford Presidential\nLibrary.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nExact duplicates within this folder were not digitized.\nDigitized from Box 16 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library\nAPPROVED\nTHE WHITE HOUSE\nACTION\nWASHINGTON\nLast Day: December 27\nPoster Colorado\nDecember 23, 1974\n12/26\nMEMORANDUM FOR:\nTHE PRESIDENT\nJoarchines\nFROM:\nKEN COLE\n12/30\nSUBJECT:\nEnrolled Bill H.R. 16006 - Government\nShipment of Motor Vehicles and Certain\nTravel and Transportation Allowances\nAttached for your consideration is H.R. 16006, sponsored by\nRepresentative Fisher and 12 others, which grants additional\nauthority relating to the shipment at Government expense of\nmotor vehicles owned by members of the Armed Forces. This\nbill would also authorize certain travel and transportation\nallowances to members of the uniformed services incapacitated\nby illness.\nOMB recommends approval and provides you with additional\nbackground information in its enrolled bill report (Tab A).\nNSC, Max Friedersdorf and Phil Areeda recommend approval.\nRECOMMENDATION\nThat you sign H.R. 16006 (Tab B).\n& FORD\nAPPROVED DEC 26 26 STATES UNITED\nRESIDENT\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nWASHINGTON, D.C. 20503\nDEC 2 0 1974\nMEMORANDUM FOR THE PRESIDENT\nSubject: Enrolled Bill H.R. 16006 - Government shipment\nof motor vehicles and certain travel and\ntransportation allowances\nSponsor - Rep. Fisher (D) Texas and 12 others\nLast Day for Action\nDecember 27, 1974 - Friday\nPurpose\nProvides authority for the Government to utilize a\ncombination of land and water transportation when shipping\nvehicles owned by members of the armed forces under certain\ncircumstances; authorizes reshipment or transshipment, at\nGovernment expense, of an armed force member's privately\nowned vehicle in certain cases; authorizes certain travel\nand transportation allowances for members of the uniformed\nservices incapacitated by illness.\nAgency Recommendations\nOffice of Management and Budget\nApproval\nDepartment of Defense\nApproval\nDiscussion\nUnder existing statutory authority, a member of an armed\nforce who is ordered to make a change of permanent station\nis entitled to shipment of his privately owned vehicle, at\nGovernment expense, to his new duty station. Such shipment,\nhowever, may only be on a vessel owned, leased or chartered\nby the U.S., a privately owned American-flag ship, or in\nthe event that neither of those two shipping services is\navailable, by foreign-flag shipping. The enrolled bill\n2\nwould amend the current law to permit a member's vehicle\nto be transported, at Government expense, by a combination\nof land and water transportation between customary ports\nof embarkation and debarkation provided the major portion\nof the distance covered is in U.S. flag ships and provided\nthe cost of such shipment does not exceed the cost to the\nU.S. of direct water transportation.\nEnactment of H.R. 16006 would enable the Government to\neffectively utilize recent innovations in shipping known as\ncontainerization. Cargo may now be transported more efficiently\nand safely in containers designed to be carried in special\ncontainerships and transferred easily between water and surface\ntransportation systems. Enactment of the bill could also\nresult in some savings and added convenience to both the\nGovernment and members of the armed forces whose vehicles are\nshipped and could result in more business for American-flag\nvessels. For example, there is currently American-flag service\nbetween Europe and California ports but not between Europe and\nports in Oregon and Washington. There is also no coastal\nservice between California and Oregon and Washington. Because\nland shipment of members' vehicles, at Government expense,\nis not authorized under existing law, the armed forces must\nuse foreign-flag shipping when transporting members' vehicles\nfrom Europe to ports in Oregon and Washington. The enrolled\nbill would permit shipment of members' vehicles on American-\nflag vessels between Europe and California and overland\ntransportation of those vehicles between California and Oregon\nand Washington.\nH.R. 16006 would also authorize the reshipment or transship-\nment, at Government expense, of vehicles owned by members of\nthe armed forces whenever such transportation is necessitated\nby a shipping error or whenever a member's orders have been\nchanged after shipment of his vehicle. Since authorities\nunder existing law do not cover these situations, an affected\nmember must pay the cost of any additional transportation\nhimself, even though the shipping error or change in orders\ndid not arise from any action on his part. The enrolled bill\nwould correct this inequity.\nLIBRARY\n3\nFinally, the enrolled bill would provide authority for\nmembers of the uniformed services who are ill and whose\nillness is expected to require prolonged hospitalization\nor treatment to receive travel and transportation allowances\nfor their dependents and household effects. The Comptroller\nGeneral has ruled that existing statutory authority, which\nprovides travel and transportation allowances to members\nwho are officially reported as dead, injured or in a missing\nstatus for more than 29 days, does not apply to members who\nbecome ill, even though such illness may be as incapacitating\nas, an injury. The authorization of travel and transportation\nbenefits under the bill, which is retroactive to January 1,\n1974, would remove this anomaly.\nWieloud H. Ronemal\nAssistant Director for\nLegislative Reference\nEnclosures\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nWASHINGTON, D.C. 20503\nDEC 2 0 1974\nMEMORANDUM FOR THE PRESIDENT\nSubject: Enrolled Bill H.R. 16006 - Government shipment\nof motor vehicles and certain travel and\ntransportation allowances\nSponsor - Rep. Fisher (D) Texas and 12 others\nLast Day for Action\nDecember 27, 1974 - Friday\nPurpose\nProvides authority for the Government to utilize a\ncombination of land and water transportation when shipping\nvehicles owned by members of the armed forces under certain\ncircumstances; authorizes reshipment or transshipment, at\nGovernment expense, of an armed force member's privately\nowned vehicle in certain cases; authorizes certain travel\nand transportation allowances for members of the uniformed\nservices incapacitated by illness.\nAgency Recommendations\nOffice of Management and Budget\nApproval\nDepartment of Defense\nApproval\nDiscussion\nUnder existing statutory authority, a member of an armed\nforce who is ordered to make a change of permanent station\nis entitled to shipment of his privately owned vehicle, at\nGovernment expense, to his new duty station. Such shipment,\nhowever, may only be on a vessel owned, leased or chartered\nby the U.S., a privately owned American-flag ship, or in\nthe event that neither of those two shipping services is\navailable, by foreign-flag shipping. The enrolled bill\nFORD LIGRARY 03\nTHE WHITE HOUSE\nACTION MEMORANDUM\nWASHINGTON\nLOG NO.: 802\nDate: FOR ACTION: December NSC/S 20, 1974 Mr Bovery oh ok Time: 4:00 p.m.\nCC (for information) : Warren Hendriks\nMax Friedersdorf\nJerry Jones\nPhil Areeda ok\nFROM THE STAFF SECRETARY\nDUE: Date: Monday, December 23\nTime: noon\nSUBJECT:\nEnrolled Bill H.R. 16006 - Government Shipment of Motor\nVehicles and Certain Travel and Transportation Allowances\nACTION REQUESTED:\nFor Necessary Action\nx For Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nX For Your Comments\nDraft Remarks\nREMARKS:\nPlease return to Judy Johnston, Ground Floor, West Wing\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nSEAL R. FORD LIBRARY\nIf you have any questions or if you anticipate a\ndelay in submitting the required material, please\nK. R. COLE, JR.\ntelephone the Staff Secretary immediately.\nFor the President\nDEPART OF\nDEPARTMENT OF THE NAVY\nOFFICE OF THE SECRETARY\nWASHINGTON, D. C. 20350\nUNITED AMERICA\nDecember 17, 1974\nDear Mr. Ash:\nYour transmittal sheet dated December 16, 1974, enclosing a facsimile of\nan enrolled bill of Congress, H.R. 16006, \"To amend section 2634 of title 10,\nUnited States Code, relating to the shipment at Government expense of motor\nvehicles owned by members of the armed forces, and to amend chapter 10 of\ntitle 37, United States Code, to authorize certain travel and transportation\nallowances to members of the uniformed services incapacitated by illness,\"\nand requesting the comments of the Department of Defense, has been received.\nThe Department of the Navy has been assigned the responsibility for the pre-\nparation of a report expressing the views of the Department of Defense.\nThe purpose of H.R. 16006 is to amend section 2634 of title 10, United States\nCode, relating to the shipment at government expense of motor vehicles owned\nby members of the armed forces, and section 554 of title 37, United States\nCode, relating to certain travel and transportation allowances.\nSection 2634 of title 10 currently authorizes the shipment at government\nexpense of a privately owned vehicle of a member of the armed forces\nexecuting change of permanent station orders, but such shipment must be\n(1) on a vessel owned, leased, or chartered by the United States; (2) by\nprivately owned American shipping services; or (3) by foreign-flag shipping\nservices if American-flag services are not reasonably available. Section 1\nof H.R. 16006 would authorize the shipment of a privately owned vehicle by a\ncombination of land and water transportation if (1) the cost of shipment by\nthat combination does not exceed the cost of shipping the vehicle from the\ncustomary port of embarkation to the customary port of debarkation by water\ntransportation and (2) the major portion of the distance which the vehicle\nis shipped by a combination of land and water transportation is on American-\nflag vessels.\nSection 2 of 16006 would authorize the reshipment or transshipment of\na privately owned vehicle at government expense if such reshipment or trans-\nshipment is necessitated by a shipping error or because orders directing a\nchange of permanent station are cancelled, revoked, or modified after their\nreceipt by the member.\nSections 3 and 4 of H.R. 16006 would authorize transportation for the de-\npendents and household and personal effects of a member of a uniformed\nservice on active duty who is officially reported as ill and whose illness\nis expected to require prolonged hospitalization or treatment. The house-\nhold and personal effects shipped pursuant to this authority could include,\nin addition to other authorized weight allowances, one privately owned motor\nBECEIVED\nvehicle. Section 554 of title 37, United States Code, presently provides\nthe same entitlement for transportation of the dependents and household\nand personal effects of a member of a uniformed service on active duty\nwho is reported as dead, injured, or absent for a period of more than\n29 days in a missing status.\nThe approval of this legislation would result in no increase in the\nbudgetary requirements of the Department of Defense.\nThe Department of the Navy, on behalf of the Department of Defense, re-\ncommends the approval of H.R. 16006.\nSincerely yours,\nD S Botter\nD. S. Potter\nHonorable Roy L. Ash\nUnder Secretary of the Navy\nDirector, Office of Management\nand Budget\nWashington, D.C. 20503\n2\nTHE WHITE HOUSE\nWASHINGTON\nDecember 21, 1974\nMEMORANDUM FOR:\nWARREN HENDRIKS\nFROM:\nMAX L. FRIEDERSDORF\nSUBJECT:\nAction Memorandum - Log No. 802\nEnrolled Bill H.R. 16006 - Government Shipment of\nMotor Vehicles and Certain Travel and Transportation\nAllowances\nThe Office of Legislative Affairs concurs in the attached proposal\nand has no additional recommendations.\nAttachment\n720\nTHE WHITE HOUSE\nACTION MEMORANDUM\nWASHINGTON\nLOG NO.: 802\nDate: December 20, 1974\nTime: 4:00 p.m.\nFOR ACTION: NSC/S\ncc (for information) Warren Hendriks\nMax Friedersdorf\nJerry Jones\nPhil Areeda\nFROM THE STAFF SECRETARY\nDUE: Date: Monday, December 23\nTime: noon\nSUBJECT:\nEnrolled Bill H.R. 16006 - Government Shipment of Motor\nVehicles and Certain Travel and Transportation Allowances\nACTION REQUESTED:\nFor Necessary Action\nX For Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nX For Your Comments\nDraft Remarks\nREMARKS:\nPlease return to Judy Johnston, Ground Floor, West Wing\nbut\n12/23\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\ndelay in submitting the required material, please\nNondribe\ntelephone the Staff Secretary immediately.\nFor the Presentint\nCalendar No. 1266\n93D CONGRESS\n}\nSENATE\nREPORT\n2d Session\nNo. 93-1339\nPAY ADJUSTMENTS FOR CERTAIN INDIVIDUALS AD-\nVERSELY AFFECTED BY 1972 FEDERAL PAY COM-\nPARABILITY ADJUSTMENT\nDECEMBER 12, 1974.-Ordered to be printed\nMr. McGEE, from the Committee on Post Office and Civil Service,\nsubmitted the following\nREPORT\n[To accompany H.R. 15067]\nThe Committee on Post Office and Civil Service, to which was re-\nferred the bill (H.R. 15067) to prevent reductions in pay for any\nofficer or employee who would be adversely affected as a result of im-\nplementing Executive Order 11777, having considered the same, re-\nports favorably thereon without amendment and recommends that\nthe bill do pass.\nThe purpose of H.R. 15067 is to correct an unfair situation appli-\ncable to some Federal employees whose rates of pay have been reduced\nbecause of unusual circumstances involving implementation of Execu-\ntive Order 11777 of April 12, 1974.\nSTATEMENT\nThis bill stems from the August 31, 1972 message to the Congress\nfrom President Nixon in which he announced his decision to delay for\nthree months the October, 1972, pay adjustment due under the Federal\nPay Comparability Act of 1970.\nRates of pay under the statutory pay systems were thereby adjusted\nin January, 1973, but the delay was successfully challenged in the\nFederal Courts. Following a January 25, 1974, decision by the United\nStates Court of Appeals for the District of Columbia which held the\ndelay to be erroneous, the President issued Executive Order 11777 on\nApril 12, 1974, fixing the effective date of the pay adjustment at\nOctober 1, 1972, and providing for payment of salaries due for the\nthree month period to employees and former employees.\n38-010\n2\n3\nIn a few instances, where an employee transferred from one pay\neffective date of the pay adjustment. (Examples of such cases are\nsystem to another during the period between October 1, 1972, and\nshown in Attachment No. 2 of Civil Service Commission Bulletin No.\nJanuary 1, 1973, the reconstruction of pay pursuant to the Executive\n531-66, May 9, 1974, a copy of which is-enclosed.) H.R. 15067 would\nOrder has resulted in a net loss rather than an increase in pay.\nremedy these situations.\nThe Committee believes, as does the Administration, that no em-\nThe Civil Service Commission is in complete agreement with H.R.\nployee should suffer a reduction in salary as a result of these unusual\n15067, as we believe, given the circumstances of this extremely com-\ncircumstances. The bill would rectify such instances. Its effect would\nplex situation, that it would be unfair to require any employee to\nbe to have an employee's pay adjusted to the step and grade at which\nsuffer a loss of pay as a result of this change in effective date. There-\nhis pay was fixed when the transfer from one pay system to another\nfore, we urge that your committee give this bill favorable considera-\nwas made, retroactive to the date of the personnel action. This adjusted\ntion.\nrate of pay would also be the base for any subsequent pay actions\nThe Office of Management and Budget advises that, from the stand-\naffecting him.\npoint of the Administration's program, there is no objection to the\nsubmission of this report.\nCOMMITTEE ACTION\nBy direction of the Commission.\nNo hearings were held on the bill, which was considered by the Full\nSincerely yours,\nL. J. ANDOLSEK,\nCommittee and ordered reported on December 12, 1974.\nActing Chairman.\nCOST\nCOMPTROLLER GENERAL OF THE UNITED STATES,\nWhile time has not permitted the thorough review of personnel\nWashington, D.C., November 14, 1974.\nactions necessary to provide a reliable estimate of the total cost in-\nHon. GALE McGEE,\nvolved in implementing H.R. 15067, the Civil Service Commission\nChairman, Committee on Post Office and Civil Service,\nhas estimated that only a few hundred employees would be covered by\nU.S. Senate\nthe bill. The cost, therefore, would be small.\nDEAR MR. CHAIRMAN: Your letter of October 21, 1974, requested\nour report on H.R. 15067, 93d Congress, 2d Session, an act to prevent\nAGENCY REPORTS\nreductions in pay for any officer or employee who would be adversely\nThe reports of the Civil Service Commission and Comptroller Gen-\naffected as a result of implementing Executive Order 11777, April 12,\n1974.\neral follow (the examples of cases covered by the bill referred to in\nThe purpose of H.R. 15067 is the same as that of S. 3892, 93d Con-\nthe Commission's views appear in House Report No. 93-1384)\n:\ngress, 2d Session, which was the subject of our report to you dated\nU.S. CIVIL SERVICE COMMISSION,\nOctober 18, 1974, B-167266. However, H.R. 15067 would prevent a\nWashington, D.C., November 4, 1974.\nreduction in pay resulting from Executive Order 11777 for any officer\nHon. GALE W. McGEE,\nor employee of the United States, whereas S. 3892 would prevent such\nChairman, Committee on Post Office and Civil Service, U.S. Senate,\nreductions only for those officers and employees who became subject\nWashington, D.C.\nto the General Schedule during the retroactive period. In our report\nDEAR MR. CHAIRMAN: This letter is in further response to your\nof October 18, 1974, we stated that we had no objection to the purpose\nrequest for the Commission's views on H.R. 15067, a bill \"To prevent\nof S. 3892, but we believed that it would be inequitable to not prevent\nreductions in pay for any officer or employee who would be adversely\nreductions for all employees who would have their pay reduced as a\naffected as a result of implementing Executive Order 11777.\"\nresult of Executive Order 11777. Accordingly, we recommended that\nExecutive Order 11777 retroactively changed the effective date of the\nS. 3892 be revised along the lines suggested by the Civil Service Com-\nJanuary 1973 pay adjustment for the General Schedule and the other\nmission in its report to you on that bill.\nstatutory pay systems to October 1972. This change in effective date\nSince the provisions of H.R. 15067 are similar to those suggested by\nwas ordered by President Nixon in accordance with a decision by the\nthe Commission, we have no objection to favorable consideration of\nUnited States Court of Appeals for the District of Columbia Circuit,\nthat act.\nwhich held that the delay of the pay adjustment from October 1972 to\nSincerely yours,\nJanuary 1973 was erroneous.\nR. F. KELLER,\nAs a result of Executive Order 11777, almost every employee who\nDeputy Comptroller General of the United States.\noccupied a position under one of the statutory pay systems between\nOctober 1972 and January 1973 is entitled to a retroactive payment. In\na few cases, however, because of the workings of various pay laws and\nregulations, employees will lose money as a result of this change in\nS.R. 1339\nS.R. 1339\n93D CONGRESS\n}\nHOUSE OF REPRESENTATIVES\nREPORT\n2d Session\nNo. 93-1224\nGRANTING ADDITIONAL AUTHORITY RELATING TO THE SHIPMENT\nAT GOVERNMENT EXPENSE OF MOTOR VEHICLES OWNED BY\nMEMBERS OF THE ARMED FORCES\nJULY 25, 1974.-Committed to the Committee of the Whole House on the\nState of the Union and ordered to be printed\nMr. FISHER, from the Committee on Armed Services,\nsubmitted the following\nREPORT\n[To accompany H.R. 16006]\nThe Committee on Armed Services, to whom was referred the bill\n(H.R. 16006) to amend section 2634 of title 10, United States Code,\nrelating to the shipment at Government expense of motor vehicles\nowned by members of the armed forces, and to amend chapter 10 of\ntitle 37, United States Code, to authorize certain travel and transpor-\ntation allowances to members of the uniformed services incapacitated\nby illness, having considered the same, report favorably thereon with-\nout amendment and recommend that the bill do pass.\nPURPOSE OF THE BILL\nAt present, the authorization contained in section 2634 of title 10,\nUnited States Code, provides that the shipment of private vehicles\nowned by members of the armed services executing a permanent\nchange of station, can be accomplished at government expense only\n(1) on a vessel owned, leased or chartered by the United States, (2)\nby privately-owned American shipping services; or (3) by foreign-\nflag shipping services if American-flag services are not reasonably\navailable. This legislative proposal would authorize the services to\nutilize surface transportation in combination with water transporta-\ntion for moving these vehicles if the cost of this combination would\nnot exceed the cost of direct water transportation between customary\nports of embarkation and debarkation, and if the major portion of\nthe distance in such combined transportation is on American-flag\nvessels.\nFor the purposes of this legislation, a \"customary port\" is considered\nto be one which is closest or most convenient to the member's duty\n38-006\n2\n3\nstation from or to which ocean transportation, either breakbulk or\nSection 3 and Section 4 of the bill incorporate the provisions of H.R.\ncontainer, is available.\n15521 which was initially referred to the Committee. This legislative\nAdditionally, authority for the reshipment or transshipment of these\nproposal provides the transportation and travel entitlements spelled\nvehicles is provided when an error in shipping has occurred, or when\nout in section 554 of title 37, United States Code, to those military per-\norders involving the permanent change of station have been canceled,\nsonnel who are ill. At present; these entitlements are available only to\nrevoked, or modified after receipt by the serviceman.\nmilitary personnel who are dead, injured, or absent for a period of\nSection 554 of title 37, United States Code, provides certain trans-\nmore than 29 days in a missing status.\nportation and travel entitlements for military personnel who are dead,\nA recent Comptroller General opinion (Decision B-145471, 49\ninjured, or absent for more than 29 days in a missing status. This\nComp. Gen. 101 (1969)) ruled that the present language would not\nlegislation would also extend those covered to include those military\nencompass those military personnel who have contracted an illness,\npersonnel who are ill, when prolonged hospitalization or treatment\neven though it requires prolonged hospitalization and results in a sim-\nis anticipated in conjunction with this illness.\nilar degree of incapacitation as for those who are injured. This legisla-\ntion, which is retroactive to January 1, 1974, rectifies this anomaly.\nBACKGROUND\nCLEAN BILL\nSection 1 of the legislation incorporates a proposal introduced and\nreferred to the Committee initially as H.R. 5787, and in identical\nThe legislation was originally referred to House Armed Services\nform as H.R. 7757. The authorization provided in that section will\nCommittee legislative Subcommittee No. 2 as H.R. 5787, H.R. 7757\nallow the services to recognize and benefit by recent innovations in\n(identical bills) and H.R. 15521. The clean bill incorporates the pro-\nmaritime shipment techniques known as containerization. This process,\nvisions of each of these bills in toto, and also adopts section (d) of the\nwhich is used widely, provides for the cargo to be loaded into pro-\nDepartment of Defense's proposed substitute bill on this same subject.\ntective containers at the point of origin, then moved by any one of\nSubsequent to hearings and a full consideration of the appropriate\nseveral different modes of transportation in combination with the sea\nform for the legislation under consideration, a clean bill was intro-\nportion of the journey. Presently, the military services may not con-\nduced as H.R. 16006.\ntract with the carriers who utilize this process as it involves a degree\nFISCAL DATA\nof non-maritime movement, which cannot be paid for by the govern-\nment under current law. It is intended that this additional authority\nNo additional funds are required by the Department of Defense for\nwill allow the services to benefit through increased competition and\nthis year or ensuing years. Financing would be absorbed within exist-\nthe resulting lowered rates, improved services and increased incentive\ning available resources. Section 1 of the bill will not result in any in-\nfor efficient service. This benefit will accrue without causing any addi-\ncreased costs. It is estimated that the annual cost of the provision in\ntional cost in the movement of these vehicles, as well as avoiding any\nSection 2 will be approximately $50,000 annually. As to the fiscal im-\nadverse impact on the U.S. maritime industry from this use of alter-\npact of Sections 3 and 4 of the bill, the Department of Defense was\nnative modes of transportation by restricting the use of this authority\nunable to provide precise cost figures. However, these provisions will\nto combinations of transportation involving American-flag services.\nprovide no change in the Department's budgetary requirements.\nSection 2 of the bill is meant to terminate a highly inequitable\nsituation which occasionally arises in the movement of these private\nDEPARTMENTAL POSITION\nvehicles owned by servicemen and women upon their permanent change\nof station. In the movement of these vehicles, situations occur in which\nThe Department of Defense supports this legislation and the Office\nthe vehicle is simply shipped to an incorrect destination, or else shipped\nof Management and Budget interposes no objection, as indicated in the\nto a destination in accord with a serviceman's initial orders, which\ncorrespondence below:\nare thereafter canceled, reyoked, or modified. When such an occasion\nDEPARTMENT OF THE NAVY,\narises, the Comptroller General (in Decision B-156892; March 4,\nOFFICE OF LEGISLATIVE AFFAIRS,\n1966; 45 Comp. Gen. 544, 547) has determined that the present\nWashington, D.C., November 14, 1973.\nHon. F. EDWARD HÉBERT,\nauthority contained in section 2634 of title 10 does not allow this\nstranded vehicle to be reshipped or transshipped at government\nChairman, Committee on Armed Services, House of Representatives,\nexpense. Therefore, the serviceman himself must pay the cost of this\nWashington, D.C.\nreshipment or transshipment, although the problem was not of his\nDEAR MR. CHAIRMAN: Your request for comment on H.R. 5787 a\nown making. The frequency of such circumstances is just under 60\nbill \"To amend section 2634 of title 10, United States Code, relating\na year on the average. Section 2 of the bill specifically authorizes the\nto the shipment at Government expense of motor vehicles owned by\nreshipment and transshipment of these vehicles on such occasions.\nmembers of the armed forces,\" has been assigned to this Department\n4\n5\nby the Secretary of Defense for the preparation of a report expressing\nthe views of the Department of Defense.\nland transportation at their own expense. Either choice can result in\nThe purpose of this bill is to provide the military departments the\nconsiderable hardship to the members involved. Nevertheless, the gov-\nauthority to use land transportation in combination with water trans-\nernment may not arrange for the shipment of such vehicles by land\nportation for movement of privately owned vehicles if the cost of such\ntransportation at its expense because the Comptroller General of the\ncombined transportation would not exceed the cost of direct water\nUnited States has ruled-in his decision B-158097 of March 12, 1971\ntransportation between customary ports of embarkation and debarka-\n(50 Comp. Gen. 615)-that 10 U.S.C. 2634 does not authorize the\ntion and if the major portion of such combined transportation is on\nmovement of privately owned vehicles between ports by land trans-\nAmerican-flag vessels. Section 2634 of title 10, United States Code,\nportation at government expense in such situations. The enclosed sub-\ncurrently authorizes the shipment at government expense of privately\nstitute draft bill would authorize such movement at government\nowned vehicles of members of the armed services executing change of\nexpense.\npermanent station orders, but such shipment must be (1) on a vessel\nIn those instances in which several ports are grouped closely in one\nowned, leased, OF chartered by the United States; (2) by privately\ngeographic area, the ships of any one carrier usually call at only one or\nowned American shipping services; or (3) by foreign-flag shipping\na few of those ports rather than at each one. As a result, adequate serv-\nservices if American-flag services are not reasonably available.\nice is available only if the military services can use all of the ports in\nAs a matter of general policy, the military departments are required\nthe area. An example of this situation is the location of the German\nto evaluate all modes of transportation in order to select the most\nports of Hamburg, Bremen, and Bremerhaven within approximately\neconomical mode available. Although passage of H.R. 5787 would per-\n80 miles of each other. The ships of any particular U.S.-flag carrier\nmit greater flexibility in logistical planning and might result in some\nserving Germany usually call at only one of those three ports. At the\ncost-savings, the Department of the Navy, on behalf of the Depart-\npresent time, members of the armed services deliver or pick up their\nment of Defense, recommends the enactment of the enclosed substitute\nvehicles only at Bremerhaven, where there are extensive processing\ndraft bill.\nfacilities. Since the military services do not know in advance how many\nThe substitute draft bill would authorize shipment of privately\nmembers will be delivering their vehicles for shipment at any partic-\nowned vehicles by land transportation or by any combination of water\nular time or which ship will be available to transport any particular\nand land transportation if the cost of such transportation is the same\nvehicle, the services are unable to direct the member to take his vehicle\nas or less than the cost of direct water transportation from the cus-\nto Bremen or Hamburg rather than to Bremerhaven. To obtain con-\ntomary port of embarkation to the customary port of debarkation, if\nsistently cheap and adequate service, however, it is sometimes necessary\nthe use of such transportation is required to permit the utilization of\nto move a privately owned vehicle overland from the collection point\nAmerican-flag shipping, or if there is no direct water transportation\nin Bremerhaven to the ports of Bremen or Hamburg for shipment.\nreasonably available from the customary port of embarkation to the\nSuch movement is possible at present only because the carriers make\ncustomary port of debarkation. This expanded authority is desirable\nno charge for this overland shipment in addition to their charge for\nbecause of the advent of the containership system and its replacement\nthe subsequent water transportation. Should a carrier calling only at:\nof the traditional breakbulk ship. The development of the intermodal\nBremen or Hamburg decide to levy an additional charge for the over-\ncontainer and the containership specially designed to earry it has\nland shipment, the aforementioned Comptroller General's opinion\nmade feasible the substitution of land transportation for direct water\nwould require the military services to stop moving vehicles from Brem-\ntransportation since both land and containership tranportation sys-\nerhaven to Bremen or Hamburg and instead to use on occasion a more\ntems are designed to carry the container efficiently and to enable trans-\nexpensive American-flag carrier calling at Bremerhaven or even a for-\nfer between them without risk to the safety of the cargo.\neign-flag carrier calling at Bremerhaven if no American-flag carrier\nBecause the containership system has brought an increased reliance\nwere reasonably available at Bremerhaven. Enactment of the enclosed\non feeder systems, implemented either by water or land transporta-\nsubstitute draft bill, therefore, would not only promote cost reduction\ntion, to collect and distribute cargo at major ports of call, the number\nbut also would improve this country's international balance of pay-\nof port calls by transoceanic ships has decreased. Although the mili-\nments by promoting the continued use of American-flag shipping.\ntary services have recognized the reduction in port calls by changing\nThe services of U.S. flag-carriers could be utilized in an additional\nthe location at which service members pick up and deliver privately\nsituation if the enclosed substitute draft bill were enacted. For exam-\nowned vehicles, on occasion vehicles are delivered by their owners for\nple, there is a U.S. flag service between Europe and California ports\nshipment at a port to which service suddenly ends, either permanently\nbut there is no American-flag service from Europe to ports in Washing-\nor for an extended period of time, because of an unannounced change\nton and Oregon. Since there is also no coastal service between Cali-\nin schedule, a strike, port congestion, or a catastrophe. When vehicles\nfornia and Washington or Oregon and since the aforementioned\nare frustrated at a particular port on such an occasion, their owners\nComptroller General's opinion precludes the overland shipment of pri-\nmust either leave their vehicles at that port until service is resumed\nvately owned vehicles at government expense between ports in Cali-\nor arrange for the shipment of their vehicles to a substitute port by\nfornia and Washington or Oregon, the military services must utilize\n6\n7\nforeign-flag carriers between Europe and Washington or Oregon. The\norders, it appears that it would have done SO in clear and unmistak-\nsubstitute draft bill would permit the shipment of privately owned\nable language.\" (Decision B-156892; March 4, 1966; 45 Comp. Gen.\nvehicles on American flag-vessels from Europe to California and the\n544, 547)\noverland shipment of those vehicles from California to Washington\nEnactment of H.R. 5787 or of the substitute draft bill will result in\nand Oregon.\nno increase in the Department of Defense budgetary requirements.\nThe shipment of privately owned vehicles by a combination of land\nThis report has been coordinated within the Department of Defense\nand water transportation as authorized by the substitute draft bill\nin accordance with procedures prescribed by the Secretary of Defense.\nwould have other cost-saving effects. In some cases it would be less\nThe Office of Management and Budget advises that, from the stand-\nexpensive to ship vehicles from Europe to New Orleans by water trans-\npoint of the Administration's program, there is no objection to the\nportation and then from New Orleans to the West Coast of the con-\npresentation of this report on H.R. 5787 for the consideration of the\ntinental United States by land transportation rather than to ship those\nCommittee.\nvehicles solely by water transportation from Europe to West Coast\nFor the Secretary of the Navy.\nports. In addition, it may be less expensive to ship vehicles from Alaska\nSincerely yours,\nto the continental United States overland or by a combination land\nE. K. SNYDER,\nand water route rather than by an all-water route.\nRear Admiral, USN, Chief of Legislative fairs.\nThe substitute draft bill would also authorize the use of air transpor-\nEnclosure: Substitute draft bill.\ntation or land transportation or a combination of air, land, or water\ntransportation if either the customary port of embarkation or the\nA BILL To amend section 2634 of title 10, United States Code, relating to the shipment at\nGovernment expense of motor vehicles owned by members of the armed forces\ncustomary port of debarkation is not accessible by water. Such author-\nization is needed because during part of each year ships cannot pick up\nBe it enacted by the Senate and House of Representatives of the\nor deliver privately owned vehicles at ports which, like those in Lab-\nUnited States of America in Congress assembled, That section 2634 of\nrador, are icebound.\ntitle 10, United States Code, is amended by adding the following new\nFurthermore, the substitute draft bill would permit the shipment\nsubsections:\nof privately owned vehicles by air or by a combination of air, land, or\n(c) When the transportation of a motor vehicle is authorized by\nwater transportation if such means of shipment is the least expensive\nsubsection (a), such motor vehicle may be shipped between two ports—\nmethod available. Authorization of movement by air transportation\n'(1) by land transportation or by any combination of water\nwhen such movement is less costly than movement by surface trans-\nand land transportation if-\nportation is in accord with the Department of Defense directive re-\n'(a) there is no water transportation reasonably available\nquiring utilization of that means of transportation which meets De-\nfrom the customary port of embarkation,\npartment of Defense requirements satisfactorily at the lowest over-all\n(b) such transportation is required to utilize United States\ncost from origin to destination.\nflag shipping, or\nFinally, the substitute draft bill would authorize the reshipment or\n(c) the cost of such transportation is the same as or less\ntransshipment of a privately owned vehicle at government expense if\nthan the cost of direct water transportation from the cus-\nsuch reshipment or transshipment is necessitated by a shipping error\ntomary port of embarkation to the customary port of\nor because orders directing a change of permanent station are can-\ndebarkation;\ncelled, revoked, or modified after their receipt by the member.\n(2) by air or land transportation or by any combination of\nMembers proceeding under change of station orders occasionally re-\nair, water, or land transportation if either the customary port of\nceive revisions in those orders directing the members to proceed to\nembarkation or the customary port of debarkation is not accessible\nduty stations other than those originally specified. In some instances,\nby water;\nmembers proceeding under orders between the United States and over-\n(3) by air transportation or by any combination of air, water,\nseas areas have already shipped a privately owned vehicle or turned\nor land transportation if the cost of such transportation is less\nit in to a terminal for shipment when those members receive amended\nthan the cost of direct water transportation or a combination of\nor cancelled orders. However, 10 U.S.C. 2634 does not explicitly au-\nwater and land transportation from the customary port of em-\nthorize an additional movement of a vehicle at government expense\nbarkation to the customary port of debarkation.\"\nincident to such a change in orders. Moreover, the Acting Comptroller\n(d) When there has been a shipping error, or when orders directing\nGeneral of the United States has ruled that present regulations may\na change of permanent station have been cancelled, revoked, or modi-\nnot be revised to permit this additional movement because \"[h]ad\nfied after receipt by the member, a motor vehicle transported pursuant\nCongress intended to authorize the reshipment or transshipment of a\nto this section may also be reshipped or transhipped in accordance with\nprivately owned vehicle because of the cancellation or revocation of\nthis section.\"\n8\n9\nDEPARTMENT OF THE NAVY,\nOFFICE OF LEGISLATIVE AFFAIRS,\nWashington, D.C., July 18, 1974.\nHon. F. EDWARD HÉBERT,\nChairman, Committee on Armed Services, House of Representatives,\nWashington, D.C.\nDEAR MR. CHAIRMAN: Your request for comment on H.R. 15521, a\nbill \"To amend chapter 10 of title 37, United States Code, to authorize\ncertain travel and transportation allowances to members of the uni-\nformed services incapacitated by illness,\" has been assigned to this\nDepartment by the Secretary of Defense for the preparation of a\nreport expressing the views of the Department of Defense.\nThe purpose of H.R. 15521 is to amend section 554 of title 37, United\nStates Code, to authorize transportation for the dependents and house-\nhold and personal effects of a member of a uniformed service on active\nduty who is officially reported as ill and whose illness is expected to\naddition to other authorized weight allowances, one privately owned\nmotor vehicle. Section 554 presently provides the same entitlement for\ntransportation of the dependents and household and personal effects\nof a member of a uniformed service on active duty who is reported as\ndead, injured, or absent for a period of more than 29 days in a missing\nstatus.\ntroller General, in his decision B-145471 [49 Comp. 101 (1969) has\nCHANGES IN EXISTING LAW\nIn compliance with clause 3 of rule XIII of the Rules of the House of Representatives, there is printed below in\nparallel columns the text of provisions of existing law which would be repealed or amended by the various provisions\nTHE BILL AS REPORTED\nrequire prolonged hospitalization or treatment. The household and\npersonnel effects shipped pursuant to this authority could include, in\nBe it enacted by the Senate and House of Representa-\ntives of the United States of America in Congress assem-\nbled, That section of title 10, United States Code,\n(1) striking out the word \"or\" at the end of clause\n(2) striking out the period at the end of clause (3)\nand inserting in lieu thereof a semicolon and the word\n(3) adding at the end thereof a new clause as\n(4) in the case of movement, the major portion\nof which is by shipping services described in clause\n(1) or (2), by other surface transportation between\ncustomary ports of embarkation and debarkation if\nsuch means of transport does not exceed the cost to\nthe United States of other authorized means.\".\nis amended by-\n(2)\n\"or\"; and\nfollows:\nAlthough an illness may be as incapacitating as an injury, the Comp-\nheld that a member of a uniformed service who becomes ill or contracts\na disease which does not result in his death while in an active duty\nstatus is not entitled to the benefits of 37 U.S.C. 554 because that section\ndoes not specifically refer to disease or illness.\nThe Department of the Navy, on behalf of the Department of\nDefense, supports enactment of H.R. 15521.\nIn accordance with section 554 (c), it is anticipated that the entitle-\nment in cases of \"illness\" would be administered in the same way as\nis the present entitlement in cases of \"injury.\"\nThe limited time available for review of H.R. 15521 precludes the\npresentation of any precise cost data. However, readily available in-\nformation indicates that enactment of the bill would result in no\nincrease in the budgetary requirements of the Department of Defense.\nThis report has been coordinated within the Department of Defense\nin accordance with procedures prescribed by the Secretary of Defense.\nThe Office of Management and Budget advises that, from the stand-\nEXISTING LAW\npoint of the Administration's program, there is no objection to the\npresentation of this report on H.R. 15521 for the consideration of the\nCommittee.\nFor the Secretary of the Navy.\nDeputy Chief.\nof the bill as reported.\nSection 2634 of title 10, United States Code\nSincerely yours,\n§ 2634. Motor vehicles; for members on change of\npermanent station\n(a) When a member of an armed force is ordered to\nE. H. WILLETT,\nmake a change of permanent station, one motor vehicle\nowned by him and for his personal use or the use of his\ndependents may, unless a motor vehicle owned by him was\ntransported in advance of that change of permanent sta-\ntion under section 406(h) of title 37, be transported, at\nthe expense of the United States, to his new station or such\nother place as the Secretary concerned may authorize-\n(1) on a vessel owned, leased, or chartered by the\n(2) by privately owned American shipping services;\n(3) by foreign-flag shipping services if shipping\nUnited States;\nservices described in clauses (1) and (2) are not rea-\nCaptain, U.S. Navy,\nsonably available.\nCOMMITTEE POSITION\nor\nThe Committee on Armed Services on July 25, 1974, a quorum being\npresent, unanimously endorsed enactment of the bill.\nH.R. 1224\nH. Rept. 93-1224-2\nEXISTING LAW\nTHE BILL AS REPORTED\nWhen the Secretary concerned, or his designee, determines\nthat a replacement for that motor vehicle is necessary for\nreasons beyond the control of the member and is in the in-\nterest of the United States, and he approves the transpor-\ntation in advance, one additional motor vheicle of the\nmember may be SO transported.\n(b) In this section, \"change of permanent station\"\nmeans the transfer or assignment of a member of the armed\nforces from one permanent station to another. It includes\nthe change from home or from the place from which or-\n10\ndered to active duty to first station upon appointment, call\nto active duty, enlistment, or induction, and from last duty\nstation to home or to the place from which ordered to ac-\ntive duty upon separation from the service, placement upon\nthe temporary disability retired list, release from active\nduty or retirement. It also includes an authorized change\nin home yard or home port of a vessel. Added Pub.L. 87-\n651, Title I, § 111 (b), Sept. 7, 1962, 76 Stat. 510, amended\nPub.L. 88-431, § 1(b), Aug. 14, 1964, 78 Stat. 439; Pub.L.\n89-101, § 1(1), July 30, 1965, 79 Stat. 425.\nSEC. 2. Section 2634 of title 10, United States Code, is\nfurther amended by adding at the end thereof the follow-\ning new subsection:\n(c) When there has been a shipping error, or when\norders directing a change of permanent station have been\ncanceled, revoked, or modified after receipt by the member,\na motor vehicle transported pursuant to this section may\nalso be reshipped or transshipped in accordance with this\nsection.\"\nSection 554 of title 37, United States Code\n§ 554. Travel and transportation; dependents; house-\nhold and personal effects; trailers; additional movements;\nmotor vehicles; sale of bulky items; claims for proceeds;\nappropriation chargeable\n(a) In this section, \"household and personal effects\" and\n\"household effects\" may include, in addition to other au-\n11\nthorized weight allowances, one privately owned motor\nvehicle which may be shipped at United States expense.\nUnder regulations prescribed by the Secretaries concerned,\nand in place of the transportation of household and per-\nsonal effects, a dependent, who would otherwise be entitled\nto transportation of household and personal effects under\nthis section, may transport a house trailer or mobile dwell-\ning within and between the areas specified in section 409\nof this title for use as a residence by one of the following\nmeans—\nEXISTING LAW\nTHE BILL AS REPORTED\n(1) transport it and be reimbursed by the United\nStates;\n(2) deliver it to an agent of the United States for\ntransportation by the United States or by commercial\nmeans; or\n(3) have it transported by commercial means and\nbe reimbursed by the United States.\nIf a trailer or dwelling is transported under clause (2) or\n(3) of this subsection, that transportation may include one\n12\nprivately owned motor vehicle which may be shipped at\nUnited States expense. Transportation, and incidental\ncosts, authorized by this section shall be at United States\nexpense without any cost limitation, and any payment au-\nthorized may be made in advance of the transportation\nconcerned.\n(b) Transportation (including packing, crating, dray-\nSEC. 3. (1) Subsection (b) of section 554, title 37,\nage, temporary storage, and unpacking of household and\nUnited States Code, is amended by-\npersonal effects) may be provided for the dependents and\n(A) inserting \"ill,\" before \"or absent for a period\nhousehold and personal effects of a member of a uni-\nof more than 29 days in a missing status\"; and\nformed service on active duty (without- regard to pay\n(B) striking out \" (if injured) in paragraph (3)\ngrade) who is officially reported as dead, injured, or\nand inserting in lieu thereof (if injured or ill)\".\nabsent for a period of more than 29 days in a missing\n(2) Subsection (c) of section 554, title 37, United\nstatus-\nStates Code, is amended by inserting \"or ill\" before\n(1) to the member's official residence of record; \"status,\",\n(2) to the residence of his dependent, next of kin,\nor other person entitled to custody of the effects,\nunder regulations prescribed by the Secretary con-\ncerned; or\n(3) on request of the member (if injured), or his\ndependent, next of kin, or other person described in\nclause (2), to another location determined in ad-\nvance or later approved by the Secretary concerned,\nor his designee.\nWhen he considers it necessary, the Secretary concerned\nmay, with respect to the household and personal effects of\na member who is officially reported as absent for a period\nof more than 29 days in a missing status, authorize the\nnontemporary storage of those effects for a period of one\nyear, or longer when justified. In addition, he may author-\nize additional movements of, and prescribe transporta-\n13\ntion, for, the dependents and household and personal\neffects, or the dependents and house trailer or mobile\ndwelling, of a member who is officially reported as absent\nfor a period of more than one year in a missing status.\n(c) When a member described in subsection (b) of this\nSEC. 4. The amendments made by section 3 of this Act\nsection is in an injured status, transportation of depend-\nshall apply with respect to members of the uniformed\nents and household and personal effects authorized by\nservices incapacitated by illness on or after January 1,\nthis section may be provided only when prolonged hos-\n1974.\npitalization or treatment is anticipated.\n14\nSUMMARY\nPURPOSE OF THE BILL\nTo provide the Department of Defense with authority to utilize\nsurface transportation in the shipment of vehicles owned by military\npersonnel executing a permanent change of station, as long as the cost\nof the transportation using a combination of sea and surface trans-\nportation does not exceed the cost of direct water transport, and if the\nmajor portion of this combination transportation is on American-flag\nvessels.\nTo provide the Department of Defense authority to reship or trans-\nship vehicles owned by military personnel when an error in shipping\nhas occurred, or when orders involving the permanent change of sta-\ntion have been cancelled, revoked or modified after receipt by the\nserviceman.\nTo provide certain travel and transportation entitlements to those\nmilitary personnel who are ill, when prolonged hospitalization or\ntreatment is anticipated in conjunction with the illness, in the same\nmanner that these entitlements are presently allowed to personnel\ndead, injured or absent for a period of more than 29 days in a missing\nstatus.\nFISCAL DATA\nThe enactment of this legislation will result in no increase in the\nbudgetary requirements of the Department of Defense.\nDEPARTMENTAL POSITION\nThe Department of Defense supports this legislation and the Office\nof Management and Budget interposes no objection.\nCOMMITTEE POSITION\nThe Committee on Armed Services on July 25, 1974, a quorum being\npresent, unanimously endorsed enactment of the bill.\nLIBRARY\nREALTH\nH. R. 16006\nAinety-third Congress of the United States of America\nAT THE SECOND SESSION\nBegun and held at the City of Washington on Monday, the twenty-first day of January,\none thousand nine hundred and seventy-four\nAn Act\nTo amend section 2634 of title 10, United States Code, relating to the shipment at\nGovernment expense of motor vehicles owned by members of the armed forces,\nand to amend chapter 10 of title 37, United States Code, to authorize certain\ntravel and transportation allowances to members of the uniformed services\nincapacitated by illness.\nBe it enacted by the Senate and House of Representatives of the\nUnited States of America in Congress assembled, That section 2634(a)\nof title 10, United States Code, is amended by-\n(1) striking out the word \"or\" at the end of clause (2) ;\n(2) striking out the period at the end of clause (3) and insert-\ning in lieu thereof a semicolon and the word \"or\"; and\n(3) adding at the end thereof a new clause as follows:\n(4) in the case of movement, the major portion of which is\nby shipping services described in clause (1) or (2), by other\nsurface transportation between customary ports of embarkation\nand debarkation if such means of transport does not exceed the\ncost to the United States of other authorized means.\".\nSEC. 2. Section 2634 of title 10, United States Code, is further\namended by adding at the end thereof the following new sub-\nsection:\n\"(c) When there has been a shipping error, or when orders direct-\ning a change of permanent station have been canceled, revoked,\nor modified after receipt by the member, a motor vehicle transported\npursuant to this section may also be reshipped or transshipped in\naccordance with this section.\nSEC. 3. (1) Subsection (b) of section 554, title 37, United States\nCode, is amended by\n(A) inserting \"ill,\" before \"or absent for a period of more\nthan 29 days in a missing status-\"; and\n(B) striking out \"(if injured)\" in paragraph (3) and insert-\ning in lieu thereof (if injured or ill)\".\n(2) Subsection (c) of section 554, title 37, United States Code, is\namended by inserting \"or ill\" before \"status,\".\nSEC. 4. The amendments made by section 3 of this Act shall apply\nwith respect to members of the uniformed services incapacitated by\nillness on or after January 1, 1974.\nSpeaker of the House of Representatives.\nVice President of the United States and\nPresident of the Senate.\nDecember 16, 1974\nDear Mr. Director:\nThe following bills were received at the White\nHouse on December 16ths\nS.J. Res. 263\nVII.R. 14349\nH.R. 1355\nVE.R. 15067\nH.R. 5056\nP.R. 158186\nH.R. 7072\nH.R. 16006\nM.R. 7077\nH.R. 16424\nH.R. 11013\nPlease let the President have reports and\nrecommendations as to the approval. of these\nbills as soon as pessible.\nSincerely,\nRobert D. Linder\nChief Executive Clerk\nThe Honorable Roy L. Ash\nDirector\nOffice of Management and Budget\nWashington, D. C.\nBERALD 7020"
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