97-7185. Federal Travel Regulation; Home Marketing Incentive Payments  

  • [Federal Register Volume 62, Number 55 (Friday, March 21, 1997)]
    [Rules and Regulations]
    [Pages 13763-13764]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-7185]
    
    
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    GENERAL SERVICES ADMINISTRATION
    41 CFR Part 302-14
    
    [FTR Amendment 61]
    RIN 3090-AG22
    
    
    Federal Travel Regulation; Home Marketing Incentive Payments
    
    AGENCY: Office of Governmentwide Policy, GSA.
    
    ACTION: Final rule.
    
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    SUMMARY: This final rule amends the Federal Travel Regulation (FTR) to 
    allow an agency to pay a home marketing incentive to a transferred 
    employee who uses the agency s homesale program provided by a 
    relocation services company under contract with the Government and who 
    independently and aggressively markets, and finds a bona fide buyer 
    for, his/her residence resulting in significantly lower fee/expense 
    payments the agency must make to the relocation services company. This 
    amendment will save the Government money through reduced payments to 
    relocation services companies and will increase employee satisfaction 
    with the relocation process.
    
    DATES: This final rule is effective March 22, 1997, and applies to an 
    employee whose effective date of transfer (date the employee reports 
    for duty at the new official station) is on or after March 22, 1997.
    
    FOR FURTHER INFORMATION CONTACT: Robert A. Clauson, Travel and 
    Transportation Management Policy Division (MTT), Washington, DC 20405, 
    telephone 202-501-0299.
    
    SUPPLEMENTARY INFORMATION: A multi-agency travel reinvention task force 
    was organized in August 1994 under the auspices of the Joint Financial 
    Management Improvement Program (JFMIP) to reengineer Federal travel 
    rules and procedures. The task force developed 25 recommended travel 
    management improvements published in a JFMIP report entitled Improving 
    Travel Management Governmentwide, dated December 1995. On September 23, 
    1996, the President signed into law the Federal Employee Travel Reform 
    Act of 1996 (Pub. L. No. 104-201), which included 8 legislative changes 
    recommended by the JFMIP to improve travel and the delivery of 
    relocation services.
        This amendment implements section 1717 of the Act which provides 
    the General Services Administration (GSA) authority to issue 
    regulations which authorize agencies to pay a home marketing incentive 
    to a transferred employee to facilitate sale of the employee s 
    residence at the old official station at lower overall cost to the 
    Government when the employee uses the agency s homesale program 
    provided by a relocation services company under contract with the 
    Government. This amendment is written in the ``plain English'' style of 
    regulation writing as a continuation of GSA s effort to make the FTR 
    easier to understand and to use.
    
    What is a ``homesale program''?
    
        A program under which a relocation services company, under contract 
    with the agency, purchases a transferred employee s residence at fair 
    market (appraised) value and then independently markets and sells the 
    residence.
    
    What is the ``home marketing incentive payment''?
    
        This is a payment an agency makes to its transferred employee to 
    encourage the employee to independently and aggressively market his/her 
    residence and find a bona fide buyer, thereby reducing the fee/expenses 
    the agency must pay the relocation services company. The amount of the 
    incentive payment may not exceed five percent of the price the 
    relocation services company paid the employee for his/her residence, or 
    the savings the agency realized from the reduced fee/expenses it paid.
    
    Why would an agency want to institute a home marketing incentive 
    payment program?
    
        With this type of program, the sum of the incentive payment and the 
    reduced payment to the relocation services company is less than the 
    fee/expenses the agency must pay the relocation services company when 
    the company has to find a buyer for the residence.
    
    What is the ``plain English'' style of regulation writing?
    
        The ``plain English'' style of regulation writing is a new, simpler 
    to read and understand, question and answer regulatory format. 
    Questions are in the first person and answers are in the second person. 
    GSA uses a ``we'' question when referring to an agency and an ``I'' 
    question when referring to the employee.
    
    How does the plain English style of regulation writing affect 
    employees?
    
        A question and its answer combine to establish a rule. The employee 
    and the agency must follow the language contained in both the question 
    and its answer.
        GSA has determined that this rule is not a significant regulatory 
    action for the purposes of Executive Order 12866 of September 30, 1993. 
    This final rule is not required to be published in the Federal Register 
    for notice and comment. Therefore, the Regulatory Flexibility Act does 
    not apply. This rule also is exempt from Congressional review 
    prescribed under 5 U.S.C. 801 since it relates solely to agency 
    management and personnel.
    
    List of Subjects in 41 CFR Part 302-14
    
        Government employees, Travel and transportation expenses.
    
        For the reasons set out in the preamble, 41 CFR part 302-14 is 
    added to read as follows:
    
    PART 302-14--HOME MARKETING INCENTIVE PAYMENTS
    
    Subpart A--Payment of Incentive to the Employee
    
    Sec.
    302-14.1  What is a ``homesale program''?
    302-14.2  What is the purpose of a home marketing incentive payment?
    302-14.3  Am I eligible to receive a home marketing incentive 
    payment?
    
    [[Page 13764]]
    
    302-14.4  Must my agency pay me a home marketing incentive?
    302-14.5  Under what circumstances will I receive a home marketing 
    incentive payment?
    302-14.6  How much may my agency pay me for a home marketing 
    incentive?
    302-14.7  Are there tax consequences when I receive a home marketing 
    incentive payment?
    
    Subpart B--Agency Responsibilities
    
    302-14.100  How should we administer our home marketing incentive 
    payment program?
    302-14.101  What policies must we establish to govern our home 
    marketing incentive payment program?
    302-14.102  What factors should we consider in determining whether 
    to establish a home marketing incentive payment program?
    302-14.103  What factors should we consider in determining the 
    amount of a home marketing incentive payment?
    
        Authority: 5 U.S.C. 5756.
    
    Subpart A--Payment of Incentive to the Employee
    
        Note to subpart A: Use of the pronouns ``I'' and ``you'' 
    throughout this subpart refers to the employee.
    
    
    Sec. 302-14.1  What is a ``homesale program''?
    
        It is a program offered by an agency through a contractual 
    arrangement with a relocation services company. The relocation services 
    company purchases a transferred employee s residence at fair market 
    (appraised) value and then independently markets and sells the 
    residence.
    
    
    Sec. 302-14.2  What is the purpose of a home marketing incentive 
    payment?
    
        To reduce the Government s relocation costs by encouraging 
    transferred employees who participate in their employing agency s 
    homesale program to independently and aggressively market, and find a 
    bona fide buyer for, their residence. This significantly reduces the 
    fees/expenses their agencies must pay to relocation services companies 
    and effectively lowers the cost of such programs.
    
    
    Sec. 302-14.3  Am I eligible to receive a home marketing incentive 
    payment?
    
        Yes, if you are an employee who is authorized to transfer and you 
    otherwise meet requirements for sale of your residence at Government 
    expense.
    
    
    Sec. 302-14.4  Must my agency pay me a home marketing incentive?
    
        No. Your agency determines when it is in the Government s interest 
    to offer you a home marketing incentive.
    
    
    Sec. 302-14.5  Under what circumstances will I receive a home marketing 
    incentive payment?
    
        You will receive a home marketing incentive payment when:
        (a) You enter your residence in your agency s homesale program;
        (b) You independently and aggressively market your residence;
        (c) You find a bona fide buyer for your residence as a result of 
    your independent marketing efforts;
        (d) You transfer the residence to the relocation services company;
        (e) Your agency pays a reduced fee/expenses to the relocation 
    services company as a result of your independent marketing efforts; and
        (f) You meet any additional conditions your agency has established, 
    including but not limited to, mandatory marketing periods, list price 
    guidelines, closing requirements, and residence value caps.
    
    
    Sec. 302-14.6  How much may my agency pay me for a home marketing 
    incentive?
    
        Your agency determines the amount of your home marketing incentive 
    payment. The incentive payment, however, may not exceed the lesser of:
        (a) Five percent of the price the relocation services company paid 
    when it purchased the residence from you; or
        (b) The savings your agency realized from the reduced fee/expenses 
    it paid as a result of your finding a bona fide buyer.
    
    
    Sec. 302-14.7  Are there tax consequences when I receive a home 
    marketing incentive payment?
    
        Yes, the home marketing incentive payment is considered income. 
    Consequently, you will be taxed, and your agency will withhold income 
    and employment taxes, on the home marketing incentive payment. You will 
    not, however, receive a withholding tax allowance (WTA) to offset the 
    withholding on your home marketing incentive payment, nor will you 
    receive a relocation income tax (RIT) allowance payment for 
    substantially all of your Federal, state and local income taxes on the 
    incentive payment.
    
    Subpart B--Agency Responsibilities
    
        Note to subpart B: Use of the pronouns ``we'' and ``you'' 
    throughout this subpart refers to the agency.
    
    
    Sec. 302-14.100  How should we administer our home marketing incentive 
    payment program?
    
        Your goal in using an incentive payment program is to reduce your 
    overall relocation costs. You must not make a home marketing incentive 
    payment that exceeds the savings you realize from the reduced fees/
    expenses you pay the relocation services company.
    
    
    Sec. 302-14.101  What policies must we establish to govern our home 
    marketing incentive payment program?
    
        You must establish policies to govern:
        (a) The conditions under which you will authorize a home marketing 
    incentive payment for an employee;
        (b) The amount of the home marketing incentive payment(s) you will 
    offer (or the method you will use to compute your home marketing 
    incentive payments); and
        (c) Who will determine in each case whether a home marketing 
    incentive payment is authorized.
    
    
    Sec. 302-14.102  What factors should we consider in determining whether 
    to establish a home marketing incentive payment program?
    
        You should consider:
        (a) Whether the program will increase the percentage of residences 
    sold for which employees find a bona fide buyer. You should establish a 
    benchmark for the percentage of residences for which you expect 
    employees to find a bona fide buyer resulting in lower homesale costs 
    to you. If your historical percentage of employee-generated sales is 
    below your benchmark, a home marketing incentive payment program may 
    benefit you.
        (b) The expected net savings from a home marketing incentive 
    payment program.
    
    
    Sec. 302-14.103  What factors should we consider in determining the 
    amount of a home marketing incentive payment?
    
        You should consider:
        (a) Amount of savings from reduced fee/expenses paid to the 
    relocation services company. The home marketing incentive payment 
    program is intended to reduce your relocation costs. The amount of each 
    home marketing incentive payment you make, therefore, must not exceed 
    the savings you realize from the reduced fee you pay to the relocation 
    services company.
        (b) Employee's efforts in marketing the residence. The purpose of a 
    home marketing incentive payment program is to encourage a transferred 
    employee who participates in a homesale program to independently and 
    aggressively market his/her residence and find a bona fide buyer.
    
        Dated: March 17, 1997.
    Thurman M. Davis, Sr.,
    Acting Administrator of General Services.
    [FR Doc. 97-7185 Filed 3-20-97; 8:45 am]
    BILLING CODE 6820-34-P
    
    
    

Document Information

Effective Date:
3/22/1997
Published:
03/21/1997
Department:
General Services Administration
Entry Type:
Rule
Action:
Final rule.
Document Number:
97-7185
Dates:
This final rule is effective March 22, 1997, and applies to an employee whose effective date of transfer (date the employee reports for duty at the new official station) is on or after March 22, 1997.
Pages:
13763-13764 (2 pages)
Docket Numbers:
FTR Amendment 61
RINs:
3090-AG22
PDF File:
97-7185.pdf
CFR: (11)
41 CFR 302-14.1
41 CFR 302-14.2
41 CFR 302-14.3
41 CFR 302-14.4
41 CFR 302-14.5
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