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The original documents are located in Box 54, folder "8/19/76 HR1402 Relief of John W Hollis" 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 Gerald R. Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections.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. APPROVED AUGIS 9 1976 88/19/46 THE WHITE HOUSE ACTION WASHINGTON Last Day: August 23 August 17, 1976 MEMORANDUM FOR THE PRESIDENT Posted FROM: JIM CANNON 8/21/76 SUBJECT: H.R. 1402 - For the Relief of John W. Hollis aschwis Attached for your consideration is H.R. 1402, sponsored by Representative Ichord. 8/23/76 The enrolled bill authorizes and directs payment to John Hollis of $4,114.45 in settlement of his claim for relocation and travel expenses in connection with transfers of his official duty station from New Mexico to Saigon and then to Missouri in 1969. A detailed discussion of the provisions of the enrolled bill is provided in OMB's enrolled bill report at Tab A. The Department of the Army recommends disapproval of the enrolled bill because it would accord preferential treatment to the claimant and afford him relief which has been denied other employees. OMB, Max Friedersdorf, Counsel's Office (Lazarus) and I recommend approval of the enrolled bill. RECOMMENDATION That you sign H.R. 1402 at Tab B. Approve 7 Disapprove Sign veto message at Tab C which has been cleared by the White House Editorial Office (Friedman) FORD - LIBRARY TS 1010 Digitized from Box 54 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library OF THE PRESIDENT EXECUTIVE OFFICE OF THE PRESIDENT OFFICE UNITED OFFICE OF MANAGEMENT AND BUDGET SECUTIVE STATES WASHINGTON, D.C. 20503 AUG 16 1976 MEMORANDUM FOR THE PRESIDENT Subject: Enrolled Bill H.R. 1402 - For the relief of John W. Hollis Sponsor - Rep. Ichord (D) Missouri Last Day for Action August 23, 1976 - Monday Purpose Authorizes and directs payment to Mr. John W. Hollis of $4,114.45 in settlement of his claim for relocation and travel expenses in connection with transfers of his official duty station from New Mexico to Saigon and then to Missouri in 1969. Agency Recommendations Office of Management and Budget Approval Department of the Army Disapproval (Veto message attched) General Services Administration No objection Discussion In June 1968, Mr. Hollis, a civilian employee of the Army at Sandia Base, New Mexico, was selected for assign- ment in Saigon, Vietnam. He sold his residence in Albuquerque, New Mexico, and moved his dependents and household goods to Springfield, Illinois, and arrived in Saigon on January 16, 1969. On the following day, he received a request to accept an assignment in St. Louis, Missouri, and on February 4, 1969, he was reassigned to St. Louis. Mr. Hollis moved from Vietnam to St. Louis, Missouri, in March 1969, and moved his dependents and household 2 goods from their residence in Springfield, Illinois, to a newly-purchased residence in St. Louis. Mr. Hollis submitted claims for his expenses for relocation of his household and travel and these claims were paid to the maximum extent authorized by applicable regulations. Under Government travel regulations, certain expenses incurred by employees when they change their duty stations--such as expenses for real estate transac- tions--are reimbursed only when both the old and new duty stations are located in the United States and certain of the territories. These and certain other expenses that Mr. Hollis claimed were barred from reimbursement because of the circumstances surrounding his two transfers, each involving a duty station outside the United States. The effect of the enrolled bill would be to reimburse Mr. Hollis to the maximum extent that would have been possible if he had been transferred directly from Albuequerque to St. Louis. This approach and the amount in the bill, $4,114.45, were recommended by the General Accounting Office (GAO) in its reports on predecessor legislation in the 93rd Congress. The Department of the Army recommends that the enrolled bill be disapproved because it would accord preferential treatment to Mr. Hollis denied to other employees, and because it finds no clear grounds of equity to justify an exception to the statutory provisions that bar reimburse- ment of his claims. Army also finds no evidence of erroneous representations by any Government officials, and believes that an employee of the claimant's grade (GS-15) and experience should have considered all the circumstances involved before volunteering for the two transfers. We concur with the conclusion of the GAO that since the period intervening between Mr. Hollis' two transfers was only a few days, it would have no objection to appro- priate relief in his case. We believe that the circum- stances of Mr. Hollis' case are sufficiently unusual to warrant an exception to the applicable Government regulations, and do not believe it serves the interest of equity to penalize him for his brief transfer to Saigon. Accordingly, we recommend approval of the enrolled bill. James Assistant Director for Legislative Reference Enclosures TO THE HOUSE OF REPRESENTATIVES: I return herewith, without my approval, H.R. 1402, for the relief of John W. Hollis. The purpose of the act is to pay John W. Hollis the sum of $4,114.45 in full settlement of all his claims against the United States for losses he sustained through the purchase and sale of residences and for travel and for other expenses which failed to qualify for reimbursement, which he and his family incurred as a result of changes in his official station from Sandia Base, New Mexico, to Saigon, Republic of Vietnam in January 1969, and from Saigon to St. Louis, Missouri, on March 10, 1969, while he was employed by various agencies of the Department of Defense. In order to reimburse the claimant for the expenses incurred in connection with the two real estate transactions, it would be necessary to make an exception to the clearly expressed statutory language of section 5724a(4), title 5, United States Code, which limits reimbursements to cases involving changes of duty stations within the United States. The Administration is of the opinion that this act would accord preferential treatment to the claimant and afford him relief denied to other employees. The Administration does not oppose making exceptions to statutory provisions if one is warranted on clear grounds of equity. There is no evidence, for example, that any erroneous representations were made by Government officials that the claimant would be reimbursed for any expenses in- curred in connection with either of the two real estate 2 transactions or that he would be authorized travel, family separation and transportation allowances in excess of the entitlements of others similarly situated. There is no equitable basis for exceptional action in the case of this claimant. THE WHITE HOUSE, EXECUTIVE OFFICE OF THE PRESIDENT UNITED OFFICE OF MANAGEMENT AND BUDGET 8-16-76 EXECUTIVE THAS WASHINGTON, D.C. 20503 AUG 16 1976 MEMORANDUM FOR THE PRESIDENT Subject: Enrolled Bill H.R. 1402 - For the relief of John W. Hollis Sponsor - Rep. Ichord (D) Missouri Last Day for Action August 23, 1976 - Monday Purpose Authorizes and directs payment to Mr. John W. Hollis of $4,114.45 in settlement of his claim for relocation and travel expenses in connection with transfers of his official duty station from New Mexico to Saigon and then to Missouri in 1969. Agency Recommendations Office of Management and Budget Approval Department of the Army Disapproval (Veto message attched) General Services Administration No objection Discussion. In June 1968, Mr. Hollis, a civilian employee of the Army at Sandia Base, New Mexico, was selected for assign- ment in Saigon, Vietnam. He sold his residence in Albuquerque, New Mexico, and moved his dependents and household goods to Springfield, Illinois, and arrived in Saigon on January 16, 1969. On the following day, he received a request to accept an assignment in St. Louis, Missouri, and on February 4, 1969, he was reassigned to St. Louis. Mr. Hollis moved from Vietnam to St. Louis, Missouri, in March 1969, and moved his dependents and household Attached document was not scanned because it is duplicated elsewhere in the document TO THE HOUSE OF REPRESENTATIVES: I return herewith, without my approval, H. R. 1402, For the relief of John W. Hollis. The purpose of the act is to pay John W. Hollis the sum of $4,114.45 in full settlement of all his claims against the United States for losses he sustained through the purchase and sale of residences and for travel and for other expenses which failed to qualify for reimbursement, which he and his family incurred as a result of changes in his official station from Sandia Base, New Mexico, to Saigon, Republic of Vietnam in January 1969, and from Saigon to St. Louis, Missouri, on March 10, 1969, while he was employed by various agencies of the Department of Defense. In order to reimburse the claimant for the expenses incurred in connection with the two real estate transactions, it would be necessary to make an exception to the clearly expressed statutory language of section 5724a(4), title 5, United States Code, which limits reimbursements to cases involving changes of duty stations within the United States. The Administration is of the opinion that this act would accord preferential treatment to the claimant and afford him relief which has been consistently denied other employees. The Administration does not oppose making exceptions to statutory provisions if one is warranted on clear grounds of equity. There is no evidence, for example, that any erroneous representations were made by Government officials that the claimant would be reimbursed for any expenses incurred in connection with either of the two real estate trans- actions or that he would be authorized travel, family separation and transportation allowances in excess of the entitlements of others similarly situated. Noreover, an employee of the claimant's grade (CS 15) and experience should have considered all the circumstances involved before volunteering for the two transfers. Accordingly, there is no equitable basis for exceptional action in the case of this claimant. THE WHITE HOUSE THE WHITE HOUSE ACTION MEMORANDUM WASHINGTON LOG NO.: Date: August 17 Time: 920 am FOR ACTION: Max Friedersdorf CC (for information): Jack Marsh Ken Lazarus Jim Cavanaugh Ed Schmults FROM THE STAFF SECRETARY DUE: Date: August 17 Time: 1100am SUBJECT: H.R. 1402 - for the relief of John W. Hollis ACTION REQUESTED: For Necessary Action 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. 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 DEPARTMENT DEPARTMENT OF DETENSE DEPARTMENT OF THE ARMY WASHINGTON, D.C. 20310 UNITED STATES.O OF AMERICA 13 AUG 1976 Honorable James T. Lynn Director, Office of Management and Budget Dear Mr. Lynn: The Department of Army recommends that the President withhold his approval from enrolled enactment H. R. 1402, 94th Congress, "For the relief of John W. Hollis." The reasons for this recommendation are in the draft of a Veto Message inclosed for the signature of the President, should he approve the proposed action. If approved, the cost of the act would be $4,114.45. Sincerely, Incl 11 Hadlai A. Hull Assistant Secretary of the Army (Financial Management) TO THE HOUSE OF REPRESENTATIVES: I return herewith, without my approval, H. R. 1402, For the relief of John W. Hollis. The purpose of the act is to pay John W. Hollis the sum of $4,114.45 in full settlement of all his claims against the United States for losses he sustained through the purchase and sale of residences and for travel and for other expenses which failed to qualify for reimbursement, which he and his family incurred as a result of changes in his official station from Sandia Base, New Mexico, to Saigon, Republic of Vietnam in January 1969, and from Saigon to St. Louis, Missouri, on March 10, 1969, while he was employed by various agencies of the Department of Defense. In order to reimburse the claimant for the expenses incurred in connection with the two real estate transactions, it would be necessary to make an exception to the clearly expressed statutory language of section 5724a(4), title 5, United States Code, which limits reimbursements to cases involving changes of duty stations within the United States. The Administration is of the opinion that this act would accord preferential treatment to the claimant and afford him relief which has been consistently denied other employees. The Administration does not oppose making exceptions to statutory provisions if one is warranted on clear grounds of equity. There is no evidence, for example, that any erroneous representations were made by Government officials that the claimant would be reimbursed for any expenses incurred in connection with either of the two real estate trans- actions or that he would be authorized travel, family separation and transportation allowances in excess of the entitlements of others similarly situated. Moreover, an employee of the claimant's grade (GS-15) and experience should have considered all the circumstances involved before volunteering for the two transfers. Accordingly, there is no equitable basis for exceptional action in the case of this claimant. THE WHITE HOUSE UNITED STATES OF AMERICA # * # 4 GENERAL SERVICES ADMINISTRATION 1 * WASHINGTON, DC 20405 * * GENERAL SERVICES # ADMIRES TRATION * ** A August 13, 1976 Honorable James T. Lynn Director, Office of Management and Budget Washington, D.C. 20503 Dear Mr. Lynn: By letter of August 11, 1976, you requested the views of the General Services Administration on enrolled bill H.R. 1402, "For the relief of John W. Hollis." We have reviewed the subject legislation and have no objection to Presidential approval. Sincerely, TERRY CHAMBERS Chanibas DEPUTY ADMINISTRATOR Keep Freedom in Your Future With U.S. Savings Bonds THE WHITE HOUSE ACTION MEMORANDUM WASHINGTON LOG NO.: Date: August 17 Time: 920am FOR ACTION: Max Friedersdorf CC (for information): Jack Marsh Ken Lazarus Jim Cavanaugh David Lissy Ed Schmults FROM THE STAFF SECRETARY DUE: Date: August 17 Time: 1100am SUBJECT: H.R. 1402 - for the relief of John W. Hollis ACTION REQUESTED: For Necessary Action 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 Recommend approval for the reasons set forth by OMB. Ken Lazarus PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED. If you have any questions or if you anticipate a / delay in submitting the required material, please James M. Cannon THE WHITE HOUSE ACTION MEMORANDUM WASHINGTON LOG NO.: Date: August 17 Time: 920am FOR ACTION: Max Friedersdorf cc (for information): Jack Marsh Ken Lazarus Jim Cavanaugh David Lissy Ed Schmults FROM THE STAFF SECRETARY DUE: Date: August 17 Time: 1100am SUBJECT: H.R. 1402 - for the relief of John W. Hollis ACTION REQUESTED: For Necessary Action 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 No objection will PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED. If you have any questions or if you anticipate a delay in submitting the required material, please James M. Cannon THE WHITE HOUSE ACTION MEMORANDUM WASHINGTON LOG NO.: Date: August 17 Time: 920am FOR ACTION: Max Friedersdorf RKW cc (for information): Jack Marsh Ken Lazarus Jim Cavanaugh David Lissy Ed Schmults FROM THE STAFF SECRETARY DUE: Date: August 17 Time: 1100am SUBJECT: H.R. 1402 - for the relief of John W. Hollis ACTION REQUESTED: For Necessary Action 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. If you have any questions or if you anticipate a - delay in submitting the required material, please James M. Cannon TO THE HOUSE OF REPRESENTATIVES: I return herewith, without my approval, H.R. 1402, for the relief of John W. Hollis. The purpose of the act is to pay John W. Hollis the sum of $4,114.45 in full settlement of all his claims against the United States for losses he sustained through the purchase and sale of residences and for travel and for other expenses which failed to qualify for reimbursement, which he and his family incurred as a result of changes in his official station from Sandia Base, New Mexico, to Saigon, Republic of Vietnam in January 1969, and from Saigon to St. Louis, Missouri, on March 10, 1969, while he was employed by various agencies of the Department of Defense. In order to reimburse the claimant for the expenses incurred in connection with the two real estate transactions, it would be necessary to make an exception to the clearly expressed statutory language of section 5724a(4), title 5, United States Code, which limits reimbursements to cases involving changes of duty stations within the United States. The Administration is of the opinion that this act would accord preferential treatment to the claimant and afford him relief denied to other employees. The Administration does not oppose making exceptions to statutory provisions if one is warranted on clear grounds of equity. There is no evidence, for example, that any erroneous representations were made by Government officials that the claimant would be reimbursed for any expenses in- curred in connection with either of the two real estate 2 transactions or that he would be authorized travel, family separation and transportation allowances in excess of the entitlements of others similarly situated. There is no equitable basis for exceptional action in the case of this claimant. THE WHITE HOUSE, 94TH CONGRESS HOUSE OF REPRESENTATIVES REPORT 2d Session No. 94-970 JOHN W. HOLLIS MARCH 29, 1976.-Committed to the Committee of the Whole House and ordered to be printed Mr. MOORHEAD of California, from the Committee on the Judiciary, submitted the following REPORT [To accompany H.R. 1402] The Committee on the Judiciary, to whom was referred the bill (H.R. 1402) for the relief of John W. Hollis, having considered the same, report favorably thereon with amendment and recommend that the bill do pass. The amendment is as follows: Page 1, line 6, Strike "$5,148.55" and insert "$4,114,45". PURPOSE The purpose of the proposed legislation, as amended, is to pay John W. Hollis, of Ballwin, Missouri, $4,114.45 in settlement of his claims for losses sustained in the purchase and sale of residences and for travel and other expenses which he and his family incurred as a result of transfer in his official station from Sandia Base, New Mexico, to Saigon, Republic of Vietnam in January 1969, and from Saigon to St. Louis, Missouri, on March 10, 1969, while he was employed by mili- tary departments within the Department of Defense. STATEMENT The Comptroller General in a report on an earlier bill outlined the basis of the various elements of the claim and concluded that it would have no objection to reimbursement for expenses which he as a Federal employee would have been entitled in a permanent change of station from Albuquerque, New Mexico to St. Louis, Missouri, as if there had not been an intervening brief assignment to Siagon. In a subsequent communication on that bill on November 30, 1972, the Comptroller General recommended the amendment reducing the amount to be paid to $4,114.45, the amount stated in the committee amendment. 57-007 GRAMY 3 2 The above regulations are based upon regulations issued by the Of- situation giving rise to this claim began on June 24, 1968 when to fice of Management and Budget (Circular No. A-56) as well as sub- The W. Hollis was advised of his selection for and assignment on Decem- section 5724a(4) of title 5 of the United States Code in pertinent part Mr. John Military Assistance Command, Saigon, change of as follows: Headquarters, ber 21, was issued travel orders authorizing his permanent § 5724a. Relocation expenses of employees transferred or station. sold his residence in Albuquerque and relocated his Viet- fam- reemployed ily Springfield, arrived in Saigon on January 16, 1969, and Army Avia- Mr. to Hollis Illinois, for the duration of his assignment the following to day (a) Under such regulations as the President may prescribe nam. He to accept an assignment with the February U.S. 4, 1969, and to the extent considered necessary and appropriate, received a request Command in St. Louis, Missouri. On released him as provided therein, appropriations or other funds available tion Systems Military Assistance Command, Saigon, St. Louis. to an agency for administrative expenses are available for the Headquarters, service obligation and reassigned him to Springfield, reimbursement of all or part of the following expenses of from Incident his to one-year that reassignment he moved residence. his family from an employee for whom the Government pays expenses of travel and transportation under section 5724(a) of this title: to St. Louis, where was reimbursed he purchased expenses a new to which he was entitled which under * * * * applicable reimbursed and which constitute the $5,148.35, based the on the fol- Mr. Hollis regulations incident to each assignment. Expenses amount of (4) Expenses of the sale of the residence (or the settle- ment of an unexpired lease) of the employee at the old were his original not claim as stated in the bill H.R. 1402, as station and purchase of a home at the new official station required to be paid by him when the old and new official lowing items: (1) Expenses in connection with the Louis sale of residence in Albuquerque $3, 252. 85 stations are located within the United States, its territo- ries or possessions, the Commonwealth of Puerto Rico, or the (2) and purchase of diem residence and subsistence in St. expenses in connection transfer with the to Canal Zone. * * * dependent's Travel, per move to Springfield, and the employee's 539. 26 Because the employee was transferred twice, the transfer in each (3) Saigon Mileage from and Albuquerque per diem expenses in Louis connection with relocation of de- 96. 24 case involving one duty station outside of the United States or other (4) pendents Temporary from quarters Springfield subsistence to St. expenses for dependents and self prescribed area, he is not entitled to reimbursement of real estate in 1,260,00 connection with either transaction. Had he been transferred directly incident to relocation in St. Louis 5, 148. 35 from Albuquerque to St. Louis, he would have been entitled to reim- bursement for certain of the real estate expenses which he has claimed. Total in connection with the sale of Mr. residence Hollis' former in St. His decision to accept the reassignment to St. Louis did not however Real estate Albuquerque, expenses and the purchase of a new of the Joint nullify the intermediate transfer to Vietnam or otherwise create a residence were in disallowed on the basis that paragraph C8350 1, 1968, basis for reimbursement of real estate expenses. Louis. Volume II (JTR), revised January change re- of The itemization of real estate expenses as stated by the GAO to be Travel reimbursement Regulations, for real estate expenses incident to a duty sta- submitted by Mr. Hollis is as follows: stricts station to situations where both the old and new of Puerto Expenses in connection with sale of Albuquerque residence, Janu- permanent located within the United States, Commonwealth pertinent part ary 1, 1969 tions Rico, are or the Canal Zone. Paragraph C8350 provides in Brokerage fee $1,948.60 Attorney's fee 10.40 Sale or transfer tax; mortgage tax 77.94 as follows: C8350 GENERAL Escrow fee 30. 16 Miscellaneous expenses 197. 50 required at his old duty station; the purchase of settlement An employee to be paid by him in connection with the a residence will be entitled to reimbursement for sale expenses of his Total 2,264.60 Expenses in connection with purchase of St. Louis residence, June residence duty station; or in connection with the station, 25, 1969 at his new lease for his residence at his old duty and Appraisal or inspection fee $35. 00 of after an he unexpired has signed the required transportation agreement Lender's loan or origination fee 630. 00 Recording fees 13.25 provided that: Title examination and instrument preparation 175. 00 change of station is authorized or within approved the Mortgage title policy 160. 00 1. a permanent old and new duty stations are located the Canal Miscellaneous expenses 75. 00 United and the States, Commonwealth of Puerto Rico, or Total 988. 25 Zone; H.R. 970 H.R. 970 5 Since the period intervening between the employee's two transfers was occupying what he asserts were temporary quarters. He. has been only. a few days, that GAO sees no objection to allowing him real estate reimbursed $260, representing 30 days subsistence expenses in con- expenses as though he had transferred directly from Alburquerque to nection with his own occupancy of temporary quarters in St. Louis St. Louis. However, it believes the items labeled "miscellaneous ex- penses" should be deducted in the absence of an explanation as to what prior to his family's arrival from Springfield. Paragraph C8251-3a, JTR, revised August 1, 1968, provides as to reimbursement of tem- is covered thereby so as to permit a determination of whether they are porary quarters subsistence expenses as follows: otherwise allowable under the regulations. That portion of Mr. Hollis' claim for expenses incident to moving 3. TIME ALLOWABLE his dependents from Albuquerque to Springfield and in connection with his travel to Saigon consists of $8.51 for additional mileage, $114.75 a. General, Except as provided herein, temporary quarters for additional per diem for his family while traveling, and $416.00 subsistence expenses may be authorized or approved for the for subsistence expenses for his dependents and himself while in period of occupancy of temporary quarters, but not to exceed Springfield. The claim for additional mileage and per diem results 30 days. When an employee is transferred to or from Hawaii, from the fact that in the course of traveling from Albuquerque to Alaska, the territories and possessions, the Commonwealth of Springfield, the employee and his family traveled by way of St. Louis, Puerto Rico, or the Canal Zone, temporary quarters subsist- rather than by the usually traveled route. He has explained that this ence expenses may be authorized or approved for an addi- detour was made for the purpose of picking up orders and a passport tional period not to exceed 30 days. The length of time al- in St. Louis. That travel, however, was authorized and there is no lowed for occupancy of temporary quarters at Government showing that this was necessary. Consequently he was limited to the expense under the 30- or 60-day limitations specified herein, mileage and per diem which would have been allowable had he pro- will begin to run for the employee and his dependents when ceededi directly from Albuquerque to Springfield. We see no equity the employee, the spouse, or any other dependent starts to in allowingchim the additional mileage and per diem. occupy such quarters and the time will run concurrently. If The $416.00 amount claimed in connection with the move to Spring- employee occupies temporary quarters at one location while field is for subsistence expenses for 8. days while locating a residence the spouse and/or other dependents occupy temporary quar- in Springfield. That item was disallowed on the basis that temporary ters at another location, the time will terminate for the em- quarters subsistence expenses is authorized únder 5 U.S.C. 5724a only ployee and dependents when any one of them moves into-per- when the new duty station is located within the United States, its manent residence quarters or when the allowable time limit territories or possessions, the Commonwealth of Puerto Rico or the Canal Zone. However, we note that had Mr. Hollis been transferred expires, whichever occurs first. The use of temporary quarters directly from Albuquerque to St. Louis he would have been entitled for subsistence expense purposes under these provisions may under the applicable regulations to the expenses of a househunting begin as soon as the employee's transfer has been authorized, trip to St. Louis with per diem in lieu of subsistence limited to 6 days the required written agreement has been signed, and perma- for himself and wife (including travel time). Thus, the allowance of nent quarters at the old duty station have been vacated. Also see prohibitions in par. C8253. 6 days additional per diem would, not appear unreasonable. At the rates then in effect this would amount to $28 per day or $168. Subsistence expenses for the employee's family for the first 30 days The $96.24 amount claimed by Mr. Hollis for additional expenses were disallowed under the above-quoted regulation. Since the 30-day upon his return from Saigon in connection with moving his family period of entitlement runs concurrently for the employee and for his from Springfield to St. Louis consists of $6.24 for mileage and $90.00 dependents, Mr. Hollis' occupancy of temporary quarters in St. Louis for per diem. The additional mileage is attributable to travel between determined the running of that period. During those 30 days the fam- the motel in which the employee and his family stayed while awaiting ily remained in occupancy of their residence in Springfield. Although delivery of their household goods and their new residence in St. Louis. temporary quarters subsistence expenses may be reimbursed where an The additional per diem claimed is for time spent in such motel. Re- employee and his dependents occupy temporary quarters at separate imbursement of the additional mileage was not allowable because the locations, occupancy by the dependents of the permanent type resi- regulations make no provisions for this type of expense and the addi- dence quarters in which they were residing at the time of the transfer tional per diem was not allowable on the basis that the time spent in does not constitute occupancy of temporary quarters. Paragraph a motel awaiting delivery of household effects ordinarily is a part of C8250, JTR, revised August 1, 1968, provides in this regard as the temporary subsistence allowance which he was entitled to for a follows: maximum of 30 days as hereina: fter explained. Had he been transferred C8250 GENERAL directly to St. Louis from Albuquerque this additional expense would not have been allowable. Therefore, GAO does not believe it should When it is necessary to occupy temporary quarters incident be included in the bill. to the employee's transfer to a new duty station, temporary The remaining $1,260.00 portion of Mr. Hollis' claim (after return quarters subsistence expenses will be authorized, subject to the from Saigon) is for 60 days subsistence expenses for his family while conditions in this Part, for the purpose of defraying the ex- H.R. 970 H.R. 970 6 7 penses of the employee and his dependents. Temporary quar- We indicated in our report that the items of "miscellaneous ex- ters refers to lodging obtained temporarily after a transfer pense" claimed by Mr. Hollis should be deducted in the absence of an has been authorized or approved and after the employee and/ explanation as to the specific items included therein. Mr. Hollis has or his dependents vacate the residence quarters in which they now furnished a statement, together with supporting documentation, were residing at the time of the transfer, until the employee that the item of $197.50 claimed as a miscellaneous expense in con- or his dependents move, within the allowable period of en- nection with the sale of his Albuquerque, New Mexico, residence was titlement, into permanent residence quarters. Temporary for a title insurance reissue fee, and that the $75 claimed as a mis- quarters must, in fact, be a temporary place of residence. cellaneous expense in connection with the purchase of his St. Louis, Quarters occupied upon initial arrival at a new duty station Missouri, residence was for a survey fee. location which factually are permanent type residence quar- Both of those items of expense may properly be reimbursed under ters into which an employee moves his household goods and section 4 of Office of Management and Budget Circular No. A-56 in continues occupancy indefinitely will not be considered tem- an appropriate situation. We therefore recommend, if favorable con- porary quarters for which expense reimbursement is allow- sideration is to be given to this bill, that the $5,148.35 amount be able. Such quarters occupied temporarily within the allowable reduced to $4,114.45 rather than to the $3,841.95 amount indicated in time limit may be considered temporary quarters when their our report. need is due to the fact that the permanent quarters for which Sincerely yours, the employee has made arrangements * * ROBERT F. KELLER, That GAO has computed the maximum ($693.60) which is the Deputy Comptroller General of the United States. amount to which Mr. Hollis would have been entitled to under the COMPTROLLER GENERAL OF THE UNITED STATES, regulations had his dependents been regarded as occupying temporary Washington, D.C., October 5, 1972. quarters in Springfield. Since the family would in all likelihood have B-176779 occupied temporary quarters had Mr. Hollis been transferred directly Hon. EMANUEL CELLER, from Albuquerque to St. Louis, that GAO would have no objection to Chairman, Committee on the Judiciary, the payment of that amount. House of Representatives. The claim for additional subsistence expenses in the amount of $506.40 for a second 30-day period was disallowed under paragraph DEAR MR. CHAIRMAN: Your letter of August 15, 1972, requests our report on H.R. 16140, 92d Congress, 2d Session. The bill would author- 8551-3a, supra, inasmuch as the authority for payment of temporary ize payment to Mr. John W. Hollis of Ballwin, Missouri, in the amount quarters subsistence expenses is limited to a period not to exceed 30 of $5,148.35, in settlement of his claim for reimbursement of travel and days, except in cases involving transfers to or from certain prescribed subsistence expense for himself and his family, and for real estate areas, of which neither Saigon nor St. Louis is one. Since Mr. Hollis would not have been entitled to subsistence expenses for an additional expenses in connection with his transfers of official statistics from San- dia Base, Albuquerque, New Mexico, to Headquarters, Military Assist- 30 days if transferred directly from Albuquerque to St. Louis, we see ance Command, Saigon, Republic of Vietnam, and from there to the no particular equity in his claim for expenses which other employees United States Army Aviation Systems Command, St. Louis, Missouri. under similar circumstances are not entitled to. The employee's claim was presented to our Office and disallowed by In view of the recommendations and conclusions detailed in the Settlement Certificate dated February 14, 1972, copy enclosed. The rec- report of the General Accounting Office, the committee has determined ord indicates that on June 24, 1968, following notice of an impending that this is an appropriate matter for legislative relief. It is recom- reduction in force at Sandia Base, the employee was advised of his mended that the bill, amended to pay the reduced amount $4,114.45 selection for assignment to Headquarters, Military Assistance Com- suggested in the supplemental report of that office dated November 30, mand, Saigon, and on December 21, was issued travel orders authoriz- 1972, be considered favorably. ing his permanent change of station. Mr. Hollis sold his residence in Albuquerque and relocated his COMPTROLLER GENERAL OF THE UNITED STATES, family to Springfield, Illinois, for the duration of his assignment to Washington, D.C., November 30, 1972. Vietnam. He arrived in Saigon on January 16, 1969, and the following B-176779 day received a request to accept an assignment with the U.S. Army Hon. EMANUEL CELLER, Aviation Systems Command in St. Louis, Missouri. On February 4, Chairman, Committee on the Judiciary, 1969, Headquarters, Military Assistance Command, Saigon, released House of Representatives. him from his one-year service obligation and reassigned him to St. DEAR MR. CHAIRMAN: We refer further to your letter of August 15, Louis. Incident to that reassignment he moved his family from Spring- 1972, and to our report, B-176779 dated October 5, 1972, in regard to field, to St. Louis, where he purchased a new residence. H.R. 16140, 92d Congress, 2d session, a bill "For the relief of John W. Mr. Hollis was reimbused expenses to which he was entitled under Hollis." applicable regulations incident to each assignment. Expenses which H.R. 970 H.R. 970 8 were not reimbursed and which constitute the $5,148.35 which is the Because the employee was transferred twice, the transfer in each subject of H.R. 16140 are as follows case involving one duty station outside of the United States or other (1) Expenses in connection with the sale of residence in Albuquerque prescribed area, he is not entitled to reimbursement of real estate ex- and purchase of residence in St. Louis $3, 252. 85 penses in connection with either transaction. Had he been transferred (2) Travel, per diem and subsistence expenses in connection with the dependent's move to Springfield, and the employee's transfer directly from Albuquerque to St. Louis, he would have been entitled to Saigon from Albuquerque 539. 26 to reimbursement for certain of the real estate expenses which he has (3) Mileage and per diem expenses in connection with relocation claimed. His decision to accept the reassignment to St. Louis did not of dependents from Springfield to St. Louis 96. 24 however nullify the intermediate transfer to Vietnam or otherwise (4) Temporary quarters subsistence expenses for dependents and self incident to relocation in St. Louis 1,260.00 create a basis for reimbursement of real estate expenses. The itemization of real estate expenses submitted by Mr. Hollis is Total 5, 148. 35 as follows: Real estate expenses in connection with the sale of Mr. Hollis' former Expenses in connection with sale of Albuquerque residence, Janu- residence in Albuquerque, and the purchase of a new residence in St. ary 1, 1969: Louis, were disallowed on the basis that paragraph C8350 of the Joint Brokerage fee $1, 948. 60 Attorney's fee 10.40 Travel Regulations, Volume II (JTR), revised January 1; 1968, re- Sale or transfer tax; mortgage tax 77.94 stricts reimbursement for real estate expenses incident to a change Escrow fee 30. 16 of permanent station to situations where both the old and new duty Miscellaneous expenses 197. stations are located within the United States, Commonwealth of Puerto Total Rico, or the Canal Zone. Paragraph C8350 provides in pertinent part 2,264 60 as follows: Expenses in connection with purchase of St. Louis residence, June 25, 1969 C8350 GENERAL Appraisal or inspection fee $35.00 Lender's loan or origination fee 680. An employee will be entitled to reimbursement for expenses required Recording fees 13.25 to be paid by him in connection with the sale of his residence at his old Title examination and instrument preparation 175. 00 duty station; the purchase of a residence at his new duty station or in Mortgage title policy 160.00 connection with the settlement of an unexpired lease for his residence Miscellaneous expenses 75.00 at his old duty station, after he has signed the required transportation Total 988. 25 agreement and provided that Since the period intervening between the employee's two transfers "1. a permanent change of station is authorized or approved and was only a few days, we see no objection to allowing him real estate the old and new duty stations are located within the United States, expenses as though he had transferred directly from Albuquerque to Commonwealth of Puerto Rico, or the Canal Zone; St. Louis. However, we believe the items labeled "miscellaneous ex- The above regulations are based upon regulations issued by the Office penses" should be deducted in the absence of an explanation as to what of Management and Budget (Circular No. A-56) as well as subsection is covered thereby SO as to permit a determination of whether they are 5724a (4) of title 5 of the United States Code in pertinent part as otherwise allowable under the regulations. follows: That portion of Mr. Hollis' claim for expenses incident to moving 5724a. Relocation expenses of employees transferred or reem- his dependents from Albuquerque to Springfield and in connection ployed with his travel to Saigon consists of $8.51 for additional mileage, (a) Under such regulations as the President may prescribe and to $114.75 for additional per diem for his family while traveling, and the extent considered necessary and appropriate, as provided therein, $416.00 for subsistence expenses for his dependents and himself while appropriations or other funds available to an agency for administra- in Springfield. The claim for additional mileage and per diem results tive expenses are available for the reimbursement of all or part of the from the fact that in the course of traveling from Albuquerque to following expenses of an employee for whom the Government pays ex- Springfield, the employee and his family traveled by way of St. Louis, penses of travel and transportation under section 5724 of this title rather than by the usually traveled route. He has explained that this * * * * * * detour was made for the purpose of picking up orders and a passport in St. Louis. That travel, however, was not authorized and there is no (4) Expenses of the sale of the residence (or the settlement of an showing that this was necessary. Consequently he was limited to the unexpired lease) of the employee at the old station and purchase of a mileage and per diem which would have been allowable had he pro- home at the new official station required to be paid by him when the old and new official stations are located within the United States. its ceeded directly from Albuqueque to Springfield. We see no equity in allowing him the additional mileage and per diem. territories or possessions, the Commonwealth of Puerto Rico, or the Canal Zone. * * ** The $416.00 amount claimed in connection with the move to Spring- field is for subsistence expenses for 8 days while locating a residence H.R. 970 H.R. 970 10 11 in Springfield. That item was disallowed on the basis that temporary terminate for the employee and dependents when any one of them quarters subsistence expenses is authorized under 5 U.S.C. 5724a only moves into permanent residence quarters or when the allowable time when the new duty station is located within the United States, its limit expires, whichever occurs first. The use of temporary quarters territories or possessions, the Commonwealth of Puerto Rico or the for subsistence expense purposes under these provisions may begin Canal Zone. However, we note that had Mr. Hollis been transferred as soon as the employee's transfer has been authorized, the required directly from Albuquerque to St. Louis he would have been entitled written agreement has been signed, and permanent quarters at the under the applicable regulations to the expenses of a househunting old duty station have been vacated. Also see prohibitions in par. trip to St. Louis with per diem in lieu of subsistence limited to 6 days C8253." for himself and wife (including travel time). Thus, the allowance of Subsistence expenses for the employee's family for the first 30 days 6 days additional per diem would not appear unreasonable. At the were disallowed under the above-quoted regulation. Since the 30-day rates then in effect this would amount to $28 per day or $168. period of entitlement runs concurrently for the employee and for his The $96.24 amount claimed by Mr. Hollis for additional expenses dependents, Mr. Hollis' occupancy of temporary quarters in St. Louis upon his return from Saigon in connection with moving his family determined the running of that period. During those 30 days the from Springfield to St. Louis consists of $6.24 for mileage and $90.00 family remained in occupancy of their residence in Springfield. Al- for per diem. The additional mileage is attributable to travel between though temporary quarters subsistence expenses may be reimbursed the motel in which the employee and his family stayed while awaiting where an employee and his dependents occupy temporary quarters delivery of their household goods and their new residence in St. Louis. at separate locations, occupancy by the dependents of the permanent The additional per diem claimed is for time spent in such motel. Re- type residence quarters in which they were residing at the time of imbursement of the additional mileage was not allowable because the the transfer does not constitute occupancy of temporary quarters. regulations make no provisions for this type of expense and the ad- Paragraph C8250, JTR, revised August 1, 1968, provides in this ditional per diem was not allowable on the basis that the time spent regard as follows: in a motel awaiting delivery of household effects ordinarily is a part 8250 GENERAL of the temporary subsistence allowance which he was entitled to for a maximum of 30 days as hereinafter explained. Had he been trans- "When it is necessary to occupy temporary quarters incident to the ferred directly to St. Louis from Albuquerque this additional expense employee's transfer to a new duty station, temporary quarters sub- would not have been allowable. Therefore, we do not believe it should sistence expenses will be authorized, subject to the conditions in this be included in the bill. Part, for the purpose of defraying the expenses of the employee and The remaining $1,260.00 portion of Mr. Hollis' claim (after re- his dependents. Temporary quarters refers to lodging obtained tem- turn from Saigon) is for 60 days subsistence expenses for his family porarily after a transfer has been authorized or approved and after while occupying what he asserts were temporary quarters. He has been the employee and/or his dependents vacate the residence quarters in reimbursed $260, representing 30 days subsistence expenses in connec- which they were residing at the time of the transfer, until the employee tion with his own occupancy of temporary quarters in St. Louis prior or his dependents move, within the allowable period of entitlement, to his family's arrival from Springfield. Paragraph C8251-3a, JTR, into permanent residence quarters. Temporary quarters must, in fact, revised August 1, 1968, provides as to reimbursement of temporary be a temporary place of residence. Quarters occupied upon initial quarters subsistence expenses as follows: arrival at a new duty station location which factually are permanent type residence quarters into which an employee moves his household TIME ALLOWABLE goods and continues occupancy indefinitely will not be considered tem- porary quarters for which expense reimbursement is allowable. Such "a. General. Except as provided herein, temporary quarters sub- quarters occupied temporarily within the allowable time limit may be sistence expenses may be authorized or approved for the period of considered temporary quarters when their need is due to the fact occupancy of temporary quarters, but not to exceed 30 days. When that the permanent quarters for which the employee has made an employee is transferred to or from Hawaii, Alaska, the territories arrangements * * and possessions, the Commonwealth of Puerto Rico, or the Canal We have computed the maximum amount ($693.60) to which Mr. Zone, temporary quarters subsistance expenses may be authorized Hollis would have been entitled to under the regulations had his de- or approved for an additional period not to exceed 30 days. The length pendents been regarded as occupying temporary quarters in Spring- of time allowed for occupancy of temporary quarters at Government field. Since the family would in all likelihood have occupied temporary expense under the 30- or 60-day limitations specified herein, will quarters had Mr. Hollis been transferred directly from Albuquerque to begin to run for the employee and his dependents when the employee, St. Louis, we would have no objection to the payment of that amount. the spouse, or any other dependent starts to occupy such quarters The claim for additional subsistence expenses in the amount of and the time will run concurrently. If the employee occupies tempo- $506.40 for the second 30-day period was disallowed under paragraph rary quarters at one location while the spouse and/or other depend- 8551-3a, supra, inasmuch as the authority for payment of temporary ents occupy temporary quarters at another location, the time will quarters subsistence expenses is limited to a period not to exceed 30 H.R. 970 H.R. 970 12 days, except in cases involving transfers to or from certain prescribed areas, of which neither Saigon nor St. Louis is one. Since Mr. Hollis would not have been entitled to subsistence expenses for an additional 30 days if transferred directly from Albuquerque to St. Louis, we see no particular equity in his claim for expenses which other employees under similar circumstances are not entitled to. If favorable consideration is to be given to the bill on Mr. Hollis' behalf, we recommend that the $5,148.35 amount be reduced to $3,841.95 to provide for reimbursement of expenses to which he probably would have been entitled if he had been transferred directly from Albuquer- que to St. Louis, as discussed above. Sincerely yours, PAUL G. DEMBLING, (For the Comptroller General of the United States). H.R. 970 Calendar No. 1060 94TH CONGRESS SENATE REPORT 2d Session No. 94-1125 JOHN W. HOLLIS AUGUST 5, 1976.-Ordered to be printed Mr. HRUSKA, from the Committee on the Judiciary, submitted the following REPORT [To accompany H.R. 1402] The Committee on the Judiciary, to which was referred the bill, (H.R. 1402), for the relief of John W. Hollis, having considered the same, reports favorably thereon, without amendment, and recommends that the bill do pass. PURPOSE The purpose of the bill, is to pay John W. Hollis, of Ballwin, Missouri, $4,114.45 in settlement of his claims for losses sustained in the purchase and sale of residences and for travel and other expenses which he and his family incurred as a result of transfer in his official station from Sandia Base, New Mexico, to Saigon, Republic of Viet- nam in January 1969, and from Saigon to St. Louis, Missouri, on March 10, 1969, while he was employed by military departments within the Department of Defense. STATEMENT The facts of the case are contained in the House report as follows: The Comptroller General in a report on an earlier bill out- lined the basis of the various elements of the claim and con- cluded that it would have no objection to reimbursement for expenses which he as a Federal employee would have been entitled in a permanent change of station from Albuquerque, New Mexico, St. Louis, Missouri, as if there had not been an 57-010 2 3 intervening brief assignment to Saigon. In a subsequent com- settlement of an unexpired lease for his residence at his old munication on that bill on November 30, 1972, the Comptroller duty station, after he has signed the required transportation General recommended the amendment reducing the amounts agreement and provided that: to be paid to $4,114.45, the amount stated in the committee "1. a permanent change of station is authorized or approved amendment. and the old and new duty stations are located within the The situation giving rise to this claim began on June 24, United States, Commonwealth of Puerto Rico, or the Canal 1968, when Mr. John W. Hollis was advised of his selection Zone;" for assignment to Headquarters, Military Assistance Com- The above regulations are based upon regulations issued mand, Saigon, and on December 21, was issued travel orders by the Office of Management and Budget (Circular No. authorizing his permanent change of station. A-56) as well as subsection 5724a (4) of title 5 of the United Mr. Hollis sold his residence in Albuquerque and relocated States Code in pertinent part as follows: his family to Springfield, Illinois, for the duration of his assignment to Vietnam. He arrived in Saigon on January 16, 5724a. Relocation expenses of employees transferred or 1969, and the following day received a request to accept an reemployed assignment with the U.S. Army Aviation Systems Command in St. Louis, Missouri. On February 4, 1969, Headquarters, "(a) Under such regulations as the President may prescribe Military Assistance Command, Saigon, released him from his and to the extent considered necessary and appropriate, as one-year service obligation and reassigned him to St. Louis. provided therein, appropriations or other funds available Incident to that reassignment he moved his family from to an agency for administrative expenses are available for the Springfield, to St. Louis, where he purchased a new residence. reimbursement of all or part of the following expenses of Mr. Hollis was reimbursed expenses to which he was en- an employee for whom the Government pays expenses of titled under applicable regulations incident to each assign- travel and transportation under section 5724 (a) of this title: ment. Expenses which were not reimbursed and which * * * * * constitute the $5,148.35, the amount of his original claim as stated in the bill H.R. 1402, as based on the following items: "(4) Expenses of the sale of the residence (or the settle- (1) Expenses in connection with the sale of residence in ment of an unexpired lease) of the employee at the old Albuquerque and purchase of residence in St. Louis $3,252.85 station and purchase of a home at the new official station (2) Travel, per diem and subsistence expenses in connection required to be paid by him when the old and new official with the dependent's move to Springfield, and the employee's transfer to Saigon from Albuquerque 539. 26 stations are located within the United States, its territories (3) Mileage and per diem expenses in connection with reloca- tion of dependents from Springfield to St. Louis 96.24 Canal Zone. or possessions, * * the *") Commonwealth of Puerto Rico, or the (4) Temporary quarters subsistence expenses for dependents Because the employee was transferred twice, the transfer and self incident to relocation in St. Louis 1,260.00 in each case involving one duty station outside of the United Total 5,148.35 States or other prescribed area, he is not entitled to reimburse- Real estate expenses in connection with the sale of Mr. ment of real estate in connection with either transaction. Hollis' former residence in Albuquerque, and the purchase of Had he been transferred directly from Albuquerque to a new residence in St. Louis, were disallowed on the basis that St. Louis, he would have been entitled to reimbursement for paragraph C8350 of the Joint Travel Regulations, Volume II certain of the real estate expenses which he has claimed. His (JTR), revised January 1, 1968, restricts reimbursement for decision to accept the reassignment to St. Louis did not how- real estate expenses incident to a change of permanent station ever nullify the intermediate transfer to Vietnam or other- to situations where both the old and new duty stations are wise create a basis for reimbursement of real estate expenses. located within the United States, Commonwealth of Puerto The itemization of real estate expenses as stated by the Rico, or the Canal Zone, Paragraph C8350 provides in per- GAO to be submitted by Mr. Hollis is as follows: tinent part as follows: Expenses in connection with sale of Albuquerque residence, January 1, 1969 Brokerage fee "C8350 GENERAL Attorney's fee $1,948.60 10. 40 Sale or transfer tax; mortgage tax "An employee will be entitled to reimbursement for Escrow fee 77.94 Miscellaneous expenses 30.16 expenses required to be paid by him in connection with the 197.50 sale of his residence at his old duty station; the purchase of a Total residence at his new duty station; or in connection with the 2,264.60 S.R. 1125 S.R. 1125 4 5 Expenses in connection with purchase of St. Louis residence, mileage is attributable to travel between the motel in which June 25, 1969: Appraisal or inspection fee 35. 00 the employee and his family stayed while awaiting delivery Lender's loan or origination fee 630. 00 of their household goods and their new residence in St. Louis. Recording fees 13. 25 The additional per diem claimed is for time spent in such Title examination and instrument preparation 175. 00 motel. Reimbursement of the additional mileage was not Mortgage title policy 160. 00 Miscellaneous expenses 75. 00 allowable because the regulations make no provisions for this type of expense and the additional per diem was not allowable Total 988. 25 on the basis that the time spent in a motel awaiting delivery Since the period intervening between the employee's two of household effects ordinarily is a part of the temporary transfers was only a few days, that GAO sees no objection to subsistence allowance which he was entitled to for a maxi- allowing him real estate expenses as though he had trans- mum of 30 days as hereinafter explained. Had he been trans- ferred directly from Albuquerque to St. Louis. However, it ferred directly to St. Louis from Albuquerque this additional believes the items labeled "miscellaneous expenses" should expense would not have been allowable. Therefore, GAO does be deducted in the absence of an explanation as to what is not believe it should be included in the bill. covered thereby SO as to permit a determination of whether The remaining $1,260.00 portion of Mr. Hollis' claim (after they are otherwise allowable under the regulations. return from Saigon) is for 60 days subsistence expenses for That portion of Mr. Hollis' claim for expenses incident to his family while occupying what he asserts were temporary moving his dependents from Albuquerque to Springfield and quarters. He has been reimbursed $260, representing 30 days in connection with his travel to Saigon consists of $8.51 for subsistence expenses in connection with his own occupancy additional mileage, $114.75 for additional per diem for his of temporary quarters in St. Louis prior to his family's ar- family while traveling, and $416.00 for subsistence expenses rival from Springfield. Paragraph C8251-3a, JTR, revised for his dependents and himself while in Springfield. The August 1, 1968, provides as to reimbursement of temporary claim for additional mileage and per diem results from the quarters subsistence expenses as follows: fact that in the course of traveling from Albuquerque to Springfield, the employee and his family traveled by way of "3. TIME ALLOWABLE St. Louis, rather than by the usually traveled route. He has explained that this detour was made for the purpose of pick- "a. General. Except as provided herein, temporary quarters ing up orders and a passport in St. Louis. That travel, how- subsistence expenses may be authorized or approved for the ever, was not authorized and there is no showing that this was period of occupancy of temporary quarters, but not to exceed necessary. Consequently he was limited to the mileage and 30 days. When an employee is transferred to or from Hawaii, per diem which would have been allowable had he proceeded Alaska, the territories and possessions, the Commonwealth of directly from Albuquerque to Springfield. We see no equity Puerto Rico, or the Canal Zone, temporary quarters subsist- in allowing him the additional mileage and per diem. ence expenses may be authorized or approved for an addi- The $416.00 amount claimed in connection with the move tional period not to exceed 30 days. The length of time al- to Springfield is for subsistence expenses for 8 days while lo- lowed for occupancy of temporary quarters at Government cating a residence in Springfield. That item was disallowed on expense under the 30- or 60-day limitations specified herein, the basis that temporary quarters subsistence expenses is will begin to run for the employee and his dependents when authorized under 5 U.S.C. 5724a only when the new duty sta- the employee, the spouse, or any other dependent starts to tion is located within the United States, its territories or occupy such quarters and the time will run concurrently. If possessions, the Commonwealth of Puerto Rico or the Canal employee occupies temporary quarters at one location while Zone. However, we note that had Mr. Hollis been transferred the spouse and/or other dependents occupy temporary quar- directly from Albuquerque to St. Louis he would have been ters at another location, the time will terminate for the em- entitled under the applicable regulations to the expenses of a ployee and dependents when any one of them moves into per- househunting trip to St. Louis with per diem in lieu of sub- manent residence quarters or when the allowable time limit sistence limited to 6 days for himself and wife (including expires, whichever occurs first. The use of temporary quarters travel time). Thus, the allowance of 6 days additional per for subsistence expense purposes under these provisions may diem would not appear unreasonable. At the rates then in begin as soon as the employee's transfer has been authorized, effect this would amount to $28 per day or $168. the required written agreement has been signed, and perma- The $96.24 amount claimed by Mr. Hollis for additional nent quarters at the old duty station have been vacated. Also expenses upon his return from Saigon in connection with see prohibitions in par. C8253." moving his family from Springfield to St. Louis consists of Subsistence expenses for the employee's family for the first $6.24 for mileage and $90.00 for per diem. The additional 30 days were disallowed under the above-quoted regulation. S.R. 1125 S.R. 1125 6 7 Since the 30-day period of entitlement runs concurrently for no particular equity in his claim for expenses which other the employee and for his dependents, Mr. Hollis' occupancy employees under similar circumstances are not entitled to. of temporary quarters in St. Louis determined the running In view of the recommendations and conclusions detailed of that period. During those 30 days the family remained in in the report of the General Accounting Office, the committee occupancy of their residence in Springfield. Although tempo- has determined that this is an appropriate matter for legis- rary quarters subsistence expenses may be reimbursed where lative relief. It is recommended that the bill, amended to pay an employee and his dependents occupy temporary quarters the reduced amount $4,114.45 suggested in the supplemental at separate locations, occupancy by the dependents of the per- report of that office dated November 30, 1972, be considered manent type residence quarters in which they were residing favorably. at the time of the transfer does not constitute occupancy of temporary quarters. Paragraph C8250, JTR, revised August COMPTROLLER GENERAL OF THE UNITED STATES, 1, 1968, provides in this regard as follows: Washington, D.C., November 30, 1972. B-176779 "C8250 GENERAL Hon. EMANUEL CELLER, Chairman, Committee on the Judiciary, "When it is necessary to occupy temporary quarters inci- House of Representatives. dent to the employee's transfer to a new duty station, tempo- DEAR MR. CHAIRMAN: We refer further to your letter of rary quarters subsistence expenses will be authorized, subject August 15, 1972, and to our report, B-176779 dated October 5, to the conditions in this Part, for the purpose of defraying 1972, in regard to H.R. 16140, 92d Congress, 2d session, a bill the expenses of the employee and his dependents. Temporary "For the relief of John W. Hollis." quarters refers to lodging obtained temporarily after a trans- We indicated in our report that the items of "miscellaneous fer has been authorized or approved and after the employee expense" claimed by Mr. Hollis should be deducted in the and/or his dependents vacate the residence quarters in which absence of an explanation as to the specific items included they were residing at the time of the transfer, until the em- therein. Mr. Hollis has now furnished a statement, together ployee or his dependents move, within the allowable period with supporting documentation, that the item of $197.50 of entitlement, into permanent residence quarters. Temporary claimed as a miscellaneous expense in connection with the quarters must, in fact, be a temporary place of residence. sale of his Albuquerque, New Mexico, residence was for a title Quarters occupied upon initial arrival at a new duty station insurance reissue fee, and that the $75 claimed as a miscella- location which factually are permanent type residence quar- neous expense in connection with the purchase of his St. ters into which an employee moves his household goods and Louis, Missouri, residence was for a survey fee. continues occupancy indefinitely will not be considered tem- Both of those items of expense may properly be reimbursed porary quarters for which expense reimbursement is al- under section 4 of Office of Management and Budget Circular lowable. Such quarters occupied temporarily within the No. A-56 in an appropriate situation. We therefore recom- allowable time limit may be considered temporary quarters mend, if favorable consideration is to be given to this bill, when their need is due to the fact that the permanent quar- that the $5,148.35 amount be reduced to $4,114.45 rather than ters for which the employee has made arrangements * * " to the $3,841.95 amount indicated in our report. That GAO has computed the maximum ($693.60) which Sincerely yours, is the amount to which Mr. Hollis would have been entitled ROBERT F. KELLER, to under the regulations had his dependents been regarded as Deputy Comptroller General of the United States. occupying temporary quarters in Springfield. Since the fam- ily would in all likelihood have occupied temporary quarters COMPTROLLER GENERAL OF THE UNITED STATES, had Mr. Hollis been transferred directly from Albuquerque Washington, D.C., October 5, 1972. to St. Louis, that GAO would have no objection to the pay- B-176779 ment of that amount. The claim for additional subsistence expenses in the amount Hon. EMANUEL CELLER, of $506.40 for a second 30-day period was disallowed under Chairman, Committee on the Judiciary, paragraph 8551-3a, supra, inasmuch as the authority for pay- House of Representatives. ment of temporary quarters subsistence expenses is limited DEAR MR. CHAIRMAN: Your letter of August 15, 1972, re- to a period not to exceed 30 days, except in cases involving quests our report on H.R. 16140, 92d Congress, 2d Session. transfers to or from certain prescribed areas, of which neither The bill would authorize payment to Mr. John W. Hollis of Saigon nor St. Louis is one. Since Mr. Hollis would not have Ballwin, Missouri, in the amount of $5,148.35, in settlement been entitled to subsistence expenses for an additional 30 days of his claim for reimbursement of travel and subsistence if transferred directly from Albuquerque to St. Louis, we see expense for himself and his family, and for real estate ex- penses in connection with his transfers of official statistics S.R. 1125 S.R. 1125 8 9 from Sandia Base, Albuquerque, New Mexico, to Head- residence at his old duty station the purchase of a residence quarters, Military Assistance Command, Saigon, Republic at his new duty station; or in connection with the settlement of Vietnam, and from there to the United States Army of an unexpired lease for his residence at his old duty station, Aviation Systems Command, St. Louis, Missouri. after he has signed the required transportation agreement The employee's claim was presented to our Office and dis- and provided that: allowed by Settlement Certificate dated February 14, 1972, "1. a permanent change of station is authorized or ap- copy enclosed. The record indicates that on June 24, 1968, proved and the old and new duty stations are located following notice of an impending reduction in force at within the United States, Commonwealth of Puerto Rico, Sandia Base, the employee was advised of his selection for or the Canal Zone; assignment to Headquarters, Military Assistance Command, The above regulations are based upon regulations issued by Saigon, and on December 21, was issued travel orders au- the Office of Management and Budget (Circular No. A-56) thorizing his permanent change of station. as well as subsection 5724a (4) of title 5 of the United States Mr. Hollis sold his residence in Albuquerque and relocated Code in pertinent part as follows: his family to Springfield, Illinois, for the duration of his assignment to Vietnam. He arrived in Saigon on January 16, "§ 5724a. Relocation expenses of employees transferred or 1969, and the following day received a request to accept an reemployed assignment with the U.S. Army Aviation Systems Command (a) Under such regulations as the President may prescribe in St. Louis, Missouri. On February 4, 1969, Headquarters, and to the extent considered necessary and appropriate, as Military Assistance Command, Saigon, released him from his provided therein, appropriations or other funds available to one-year service obligation and reassigned him to St. Louis. an agency for administrative expenses are available for the Incident to that reassignment he moved his family from reimbursement of all or part of the following expenses of an Springfield, to St. Louis, where he purchased a new residence. employee for whom the Government pays expenses of travel Mr. Hollis was reimbursed expenses to which he was en- and transportation under section 5724 (a) of this title titled under applicable regulations incident to each assign- * * * * * * ment. Expenses which were not reimbursed and which (4) Expenses of the sale of the residence (or the settlement constitute the $5,148.35 which is the subject of H.R. 16140 are as follows: of an unexpired lease) of the employee at the old station and purchase of a home at the new official station required to be (1) Expenses in connection with the sale of residence in Al- paid by him when the old and new official stations are located buquerque and purchase of residence in St. Louis $3, 252. 85 within the United States, its territories or possessions, the (2) Travel, per diem and subsistence expenses in connec- Commonwealth of Puerto Rico, or the Canal Zone. * * *") tion with the dependent's move to Springfield, and the employee's transfer to Saigon from Albuquerque 539. 26 Because the employee was transferred twice, the transfer in (3) Mileage and per diem expenses in connection with re- location of dependents from Springfield to St. Louis 96. 24 each case involving one duty station outside of the United (4) Temporary quarters subsistence expenses for dependents States or other prescribed area, he is not entitled to reimburse- and self incident to relocation in St. Louis 1,260.00 ment of real estate expenses in connection with either transac- Total tion. Had he had transferred directly from Albuquerque to St. 5, 148. 35 Louis, he would have been entitled to reimbursement for cer- Real estate expenses in connection with the sale of Mr. tain of the real estate expenses which he has claimed. His de- Hollis' former residence in Albuquerque, and the purchase of cision to accept the reassignment to St. Louis did not however a new residence in St. Louis, were disallowed on the basis that nullify the intermediate transfer to Vietnam or otherwise paragraph C8350 of the Joint Travel Regulations, Volume create a basis for reimbursement of real estate expenses. II (JTR), revised January 1, 1968, restricts reimbursement The itemization of real estate expenses submitted by Mr. for real estate expenses incident to a change of permanent sta- Hollis is as follows: tion to situations where both the old and new duty stations are located within the United States, Commonwealth of Puerto Expenses in connection with sale of Albuquerque residence, January 1, 1969: Rico, or the Canal Zone. Paragraph C8350 provides in per- Brokerage fee $1, 948. 60 tinent part as follows: Attorney's fee 10. 40 Sale or transfer tax; mortgage tax 77. 94 Escrow fee 30. 16 C8350 GENERAL Misscellaneous expenses 197. 50 An employee will be entitled to reimbursement for expenses Total 2, 264. 60 required to be paid by him in connection with the sale of his S.R. 1125 S.R. 1125 10 11 Expenses in connection with purchase of St. Louis residence, June 25, 1969 $6.24 for mileage and $90.00 for per diem. The additional Appraisal or inspection fee 35.00 mileage is attributable to travel between the motel in which Lender's loan or origination fee 630. 00 the employee and his family stayed while awaiting delivery Recording fees 13. 25 of their household goods and their new residence in St. Louis. Title examination and instrument preparation 175. 00 Mortgage title policy 160. 00 The additional per diem claimed is for time spent in such Miscellaneous expensess 75. 00 motel. Reimbursement of the additional mileage was not allowable because the regulations make no provision for this Total 988. 25 type of expense and the additional per diem was not allowable Since the period intervening between the employee's two on the basis that the time spent in a motel awaiting delivery of transfers was only a few days, we see no objection to allowing household effects ordinarily is a part of the temporary sub- him real estate expenses as though he had transferred directly sistence allowance which he was entitled to for a maximum of from Albuquerque to St. Louis. However, we believe the items 30 days as hereinafter explained. Had he been transferred di- labeled "miscellaneous expenses" should be deducted in the rectly to St. Louis from Albuquerque this additional expense absence of an explanation as to what is covered thereby SO as would not have been allowable. Therefore, we do not believe to permit a determination of whether they are otherwise it should be included in the bill. allowable under the regulations. The remaining $1,260.00 portion of Mr. Hollis' claim (after That portion of Mr. Hollis' claim for expenses incident to return from Saigon) is for 60 days subsistence expenses for moving his dependents from Albuquerque to Springfield and his family while occupying what he asserts were temporary in connection with his travel to Saigon consists of $8.51 for quarters. He has been reimbursed $260, representing 30 days additional mileage, $114.75 for additional per diem for his subsistence expenses in connection with his own occupancy of family while traveling, and $416.00 for subsistence expenses temporary quarters in St. Louis prior to his family's arrival for his dependents and himself while in Springfield. The from Springfield. Paragraph C8251-3a, JTR, revised August claim for additional mileage and per diem results from the 1, 1968, provides as to reimbursement of temporary quarters fact that in the course of traveling from Albuquerque to subsistence expenses as follows: Springfield, the employee and his family traveled by way of "3. TIME ALLOWABLE St. Louis, rather than by the usually traveled route. He has ex- plained that this detour was made for the purpose of picking "a. General. Except as provided herein, temporary quarters up orders and a passport in St. Louis. That travel, however, subsistence expenses may be authorized or approved for the was not authorized and there is no showing that this was period of occupancy of temporary quarters, but not to exceed necessary. Consequently he was limited to the mileage and per 30 days. When an employee is transferred to or from Hawaii, diem which would have been allowable had he proceeded di- Alaska, the territories and possession, the Commonwealth of rectly from Albuquerque to Springfield. We see no equity in Puerto Rico, or the Canal Zone, temporary quarters subsist- allowing him the additional mileage and per diem. ance expenses may be authorized or approved for an addi- The $416.00 amount claimed in connection with the move to tional period not to exceed 30 days. The length of time Springfield is for subsistence expenses of 8 days while locat- allowed for occupancy of temporary quarters at Government ing a residence in Springfield. That item was disallowed on expense under the 30- or .60-day limitations specified herein, the basis that temporary quarters subsistence expenses is au- will begin to run for the employee and his dependents when thorized under 5 U.S.C. 5724a only when the new duty station the employee, the spouse, or any other dependent starts to is located within the United States, its territories or posses- occupy such quarters and the time will run concurrently. If sions, the Commonwealth of Puerto Rico or the Canal Zone. the employee occupies temporary quarters at one location However, we note that had Mr. Hollis been transferred di- while the spouse and/or other dependents occupy temporary rectly from Albuquerque to St. Louis he would have been quarters at another location, the time will terminate for the entitled under the applicable regulations to the expenses of a employee and dependents when any one of them moves into househunting trip to St. Louis with per diem in lieu of sub- permanent residence quarters or when the allowable time limit sistence limited to 6 days for himself and wife (including expires, whichever occurs first. The use of temporary quarters travel time). Thus, the allowance of 6 days additional per for subsistence expense purposes under these provisions may diem would not appear unreasonable. At the rates then in begin as soon as the employee's transfer has been authorized, effect this would amount to $28 per day or $168. the required written agreement has been signed, and perma- The $96.24 amount claimed by Mr. Hollis for additional nent quarters at the old duty station have been vacated. Also expenses upon his return from Saigon in connection with see prohibitions in par. C8253." moving his family from Springfield to St. Louis consists of Subsistence expenses for the employee's family for the first 30 days were disallowed under the above-quoted regulation. S.R. 1125 S.R. 1125 12 13 Since the 30-day period of entitlement runs concurrently for penses for an additional 30 days if transferred directly from the employee and for his dependents, Mr. Hollis' occupancy Albuquerque to St. Louis, we see no particular equity in of temporary quarters in St. Louis determined the running his claim for expenses which other employees under similar of that period. During those 30 days the family remained in circumstances are not entitled to. occupancy of their residence in Springfield. Although tem- If favorable consideration is to be given to the bill on porary quarters subsistence expenses may be reimbursed where Mr. Hollis' behalf, we recommend that the $5,148.35 amount an employee and his dependents occupy temporary quarters be reduced to $3,841.95 to provide for reimbursement of at separate locations, occupancy by the dependents of the per- expenses to which he probably would have been entitled if manent type residence quarters in which they were residing at he had been transferred directly from Albuquerque to St. the time of the transfers does not constitute occupancy of tem- Louis, as discussed above. porary quarters. Paragraph C8250, JTR, revised August 1, Sincerely yours, 1968, provides in this regard as follows: PAUL G. DEMBLING, (For the Comptroller General of the United States). "C8250 GENERAL The Committee believes the bill is meritorious and recommends it "When it is necessary to occupy temporary quarters incident favorably. to the employee's transfer to a new duty station, temporary O quarters subsistence expenses will be authorized, subject to the conditions in this Part, for the purpose of defraying the expenses of the employee and his dependents. Temporary quarters refers to lodging obtained temporarily after a trans- fer has been authorized or approved and after the employee and/or his dependents vacate the residence quarters in which they were residing at the time of the transfer, until the em- ployee or his dependents move, within the allowable period of entitlement, into permanent residence quarters. Temporary quarters must, in fact, be a temporary place of residence. Quarters occupied upon initial arrival at a new duty station located which factually are permanent type residence quarters into which an employee moves his household goods and continues occupancy indefinitely will not be considered tem- porary quarters for which expense reimbursement is allow- able. Such quarters occupied temporarily within the allowable time limit may be considered temporary quarters when their need is due to the fact that the permanent quarters for which the employee has made arrangements * * *" We have computed the maximum amount ($693.60) to which Mr. Hollis would have been entitled to under the regulations had his dependents been regarded as occupying temporary quarters in Springfield. Since the family would in all likelihood have occupied temporary quarters had Mr. Hollis been transferred directly from Albuquerque to St. Louis, we would have no objection to the payment of that amount. The claim for additional subsistence expenses in the amount of $506.40 for the second 30-day period was dis- allowed under paragraph 8551-3a, supra, inasmuch as the authority for payment of temporary quarters subsistence expenses is limited to a period not to exceed 30 days, except in cases involving transfers to or from certain prescribed areas, of which neither Saigon nor St. Louis is one. Since Mr. Hollis would not have been entitled to subsistence ex- S.R. 1125 S.R. 1125 H. R. 1402 Minety-fourth Congress of the United States of America AT THE SECOND SESSION Begun and held at the City of Washington on Monday, the nineteenth day of January, one thousand nine hundred and seventy-six An Act For the relief of John W. Hollis. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secre- tary of the Treasury is authorized and directed to pay, out of any money in the Treasury not otherwise appropriated, to John W. Hollis, of Ballwin, Missouri, the sum of $4,114.45 in full settlement of all his claims against the United States for losses he sustained through the purchase and sale of residences and for travel and other expenses which failed to qualify for reimbursement, which he and his family incurred as a result of changes in his official station from Sandia Base, New Mexico, to Saigon, Republic of Vietnam in January 1969, and from Saigon to St. Louis, Missouri, on March 10, 1969, while he was employed by various agencies of the Department of Defense. SEC. 2. No part of the amount appropriated in the first section of this Act in excess of 10 per centum thereof shall be paid or delivered to or received by any agent or attorney on account of services rendered in connection with this claim. Any person violating the provisions of this section shall be fined not more than $1,000. Speaker of the House of Representatives. Vice President of the United States and President of the Senate.