B-161815, AUGUST 4, 1967, 47 COMP. GEN. 93

B-161815, AUGUST 4, 1967, 47 COMP. GEN. 93

OFFICERS AND EMPLOYEES - TRANSFERS - RELOCATION - HOUSE PURCHASE - NO HOUSE SOLD AT OLD STATION UNDER PUBLIC LAW 89-516 AND IMPLEMENTING BUREAU OF THE BUDGET CIRCULAR NO. A-56, AUTHORIZING THE REIMBURSEMENT OF EXPENSES IN CONNECTION WITH EITHER THE SALE OF A RESIDENCE AT THE OLD STATION OR PURCHASE OF A DWELLING AT THE NEW OFFICIAL STATION WITHIN THE UNITED STATES, AN EMPLOYEE MAY BE REIMBURSED THE EXPENSES INCURRED IN CONNECTION WITH THE CHANGE OF OFFICIAL STATION IF HE DOES NOT SELL A RESIDENCE AT HIS OLD STATION BUT PURCHASES ONE AT HIS NEW STATION, OR CONVERSELY IF HE INCURS EXPENSES INCIDENT TO SELLING HIS RESIDENCE AT THE OLD STATION BUT DOES NOT WITHIN THE ALLOWABLE TIME LIMITATION PURCHASE A RESIDENCE AT HIS NEW STATION. OFFICERS AND EMPLOYEES - TRANSFERS - RELOCATION EXPENSES - DUTY STATIONS WITHIN UNITED STATES REQUIREMENT IN VIEW OF THE REQUIREMENT IN SECTION 2 OF PUBLIC LAW 89-516 AND SECTION 4.1 (A) OF BUREAU OF THE BUDGET CIRCULAR NO. A-56, THAT BOTH THE OLD AND NEW DUTY STATIONS OF A TRANSFERRED EMPLOYEE MUST BE LOCATED WITHIN THE 50 STATES THE DISTRICT OF COLUMBIA, THE TERRITORIES AND POSSESSIONS OF THE UNITED STATES, THE COMMONWEALTH OF PUERTO RICO, OR THE CANAL ZONE TO ENTITLE HIM TO REIMBURSEMENT FOR THE EXPENSES INCURRED IN BUYING OR SELLING A RESIDENCE, REIMBURSEMENT MAY NOT BE MADE TO AN EMPLOYEE FOR THE COST OF SELLING A RESIDENCE IN THE UNITED STATES INCIDENT TO A CHANGE-OF- DUTY STATION TO A FOREIGN POST OF DUTY, NOR MAY AN EMPLOYEE BE REIMBURSED FOR RESIDENCE PURCHASE EXPENSES UPON REASSIGNMENT TO THE UNITED STATES.

TO THE SECRETARY OF THE TREASURY, AUGUST 4, 1967:

THIS IS IN REPLY TO THE LETTER OF YOUR SPECIAL ASSISTANT TO THE SECRETARY FOR ENFORCEMENT OF JUNE 14, 1967, RAISING SEVERAL QUESTIONS REGARDING SECTION 23/4) OF THE ADMINISTRATIVE EXPENSES ACT OF 1946 (60 STAT. 807) AS ADDED BY SECTION 2 OF PUB. L. 89-516, APPROVED JULY 21, 1966, 80 STAT. 323, AND AS IMPLEMENTED IN SECTION 4 OF BUREAU OF THE BUDGET CIRCULAR NO. A-56, REVISED OCTOBER 12, 1966.

THE QUESTIONS RENUMBERED FOR IDENTIFICATION ARE AS FOLLOWS:

"1/A) CAN AN EMPLOYEE BE REIMBURSED FOR EXPENSES IN CONNECTION WITH A TRANSFER WHEN THE OLD AND NEW OFFICIAL STATIONS ARE IN THE CONTINENTAL UNITED STATES IF HE DOES NOT SELL A RESIDENCE AT THE OLD STATION BUT PURCHASES A RESIDENCE AT THE NEW STATION? (B) CONVERSELY, CAN HE BE REIMBURSED FOR SELLING EXPENSES AT THE OLD STATION IF HE DOES NOT WITHIN ALLOWABLE TIME LIMITS PURCHASE A RESIDENCE AT THE NEW STATION?

"2/A) IF THE ABOVE IS ANSWERED AFFIRMATIVELY, CAN AN EMPLOYEE WHO SELLS HIS RESIDENCE IN THE UNITED STATES PURSUANT TO A CHANGE OF STATION TO A FOREIGN POST OF DUTY BE REIMBURSED FOR HIS SELLING EXPENSES? (B) FURTHER, CAN HE BE REIMBURSED FOR RESIDENCE PURCHASE EXPENSES ON REASSIGNMENT TO THE UNITED STATES? ANY RESIDENCE PURCHASE OR SALE EXPENSES IN FOREIGN COUNTRIES, OF COURSE, ARE NOT REIMBURSABLE.'

IN ASKING FOR AN ADVANCE DECISION OF OUR OFFICE ON THE QUESTIONS SUBMITTED IT IS URGED THAT THE WORD "AND" IS USED DISJUNCTIVELY IN SECTION 23/4) TO AUTHORIZE PAYMENT OF EXPENSES IN CONNECTION WITH THE SALE OF A RESIDENCE AT THE OLD OFFICIAL STATION OR THE PURCHASE OF A DWELLING AT THE NEW OFFICIAL STATION, AND LIKEWISE THAT CONGRESS INTENDED TO DEFRAY AN EMPLOYEE'S EXPENSES IN CONNECTION WITH THE SALE OR PURCHASE OF A DWELLING LOCATED IN THE UNITED STATES IRRESPECTIVE OF THE FACT THAT THE NEW OFFICIAL STATION IS LOCATED OUTSIDE THE UNITED STATES. SECTION 23/4) OF PUB. L. 89-516, PROVIDES AS FOLLOWS:

"/4) THE EXPENSES OF THE SALE OF THE RESIDENCE (OR THE SETTLEMENT OF AN UNEXPIRED LEASE) OF THE OFFICER OR EMPLOYEE AT THE OLD OFFICIAL STATION AND PURCHASE OF A 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 (INCLUDING THE DISTRICT OF COLUMBIA), ITS TERRITORIES AND POSSESSIONS, THE COMMONWEALTH OR PUERTO RICO, AND THE CANAL ZONE, BUT REIMBURSEMENT FOR BROKERAGE FEES ON THE SALE OF THE RESIDENCE AND OTHER EXPENSES UNDER THIS SUBSECTION SHALL NOT EXCEED THOSE CUSTOMARILY CHARGED IN THE LOCALITY WHERE THE RESIDENCE IS LOCATED AND NO REIMBURSEMENT SHALL BE MADE FOR LOSSES ON THE SALE OF THE RESIDENCE. THIS PROVISION APPLIES REGARDLESS OF WHETHER THE TITLE TO THE RESIDENCE OR THE UNEXPIRED LEASE IS IN THE NAME OF THE OFFICER OR EMPLOYEE ALONE, IN THE JOINT NAMES OF THE OFFICER OR EMPLOYEE AND A MEMBER OF HIS IMMEDIATE FAMILY, OR IN THE NAME OF A MEMBER OF HIS IMMEDIATE FAMILY ALONE.'

IN IMPLEMENTING SECTION 23/4), BUREAU OF THE BUDGET CIRCULAR NO. A 56, REVISED, PROVIDES AS FOLLOWS:

"4.1 CONDITIONS AND REQUIREMENTS UNDER WHICH ALLOWANCES MAY BE PAID. THE EXTENT ALLOWABLE UNDER THIS PROVISION, THE GOVERNMENT WILL REIMBURSE AN EMPLOYEE FOR EXPENSES REQUIRED TO BE PAID BY HIM IN CONNECTION WITH THE SALE OF ONE RESIDENCE AT HIS OLD OFFICIAL STATION; PURCHASE OF ONE DWELLING AT HIS NEW OFFICIAL STATION; OR THE SETTLEMENT OF AN UNEXPIRED LEASE AT HIS PLACE OF RESIDENCE AT THE OLD OFFICIAL STATION; PROVIDED THAT:

"A. A PERMANENT CHANGE OF STATION IS AUTHORIZED OR APPROVED AND THE OLD AND NEW OFFICIAL STATIONS ARE LOCATED WITHIN THE 50 STATES, THE DISTRICT OF COLUMBIA, THE TERRITORIES AND POSSESIONS OF THE UNITED STATES, THE COMMONWEALTH OF PUERTO RICO, OR THE CANAL ZONE, AND THE EMPLOYEE HAS SIGNED AN AGREEMENT AS REQUIRED IN SUBSECTION 1.3C. (SEE EXCLUSIONS IN SUBSECTION 4.4.)

OUR OPINION IS THAT UNDER THE STATUTE AND REGULATIONS THE EXPENSES IN CONNECTION WITH EITHER THE SALE OF A RESIDENCE AT THE OLD OFFICIAL STATION OR THE PURCHASE OF A DWELLING AT THE NEW OFFICIAL STATION IN THE UNITED STATES ARE REIMBURSABLE. THIS INTERPRETATION IS SUPPORTED BY THE LANGUAGE OF SENATE REPORT NO. 1357, ACCOMPANYING H.R. 10607, ENACTED AS PUB. L. 89- 516, WHICH STATES IN PART AS FOLLOWS:

"THE PRINCIPAL FEATURES OF THE BILL PROVIDE FOR---

"4. PAYMENT OF CERTAIN REAL ESTATE TRANSACTIONS RESULTING FROM THE EMPLOYEES' SALE OR PURCHASE OF RESIDENCE, OR LEASE SETTLEMENT OF RENTED QUARTERS, INCIDENT TO TRANSFER FROM THE OLD TO THE NEW STATION.'

ACCORDINGLY, QUESTIONS 1/A) AND (B) ARE ANSWERED IN THE AFFIRMATIVE.

WITH RESPECT TO QUESTIONS 2/A) AND (B), SECTION 23/4) OF PUB. L. 89 516, AND SECTION 4.1A OF THE REGULATIONS LITERALLY REQUIRE THAT BOTH THE OLD AND THE NEW STATIONS BE LOCATED WITHIN THE UNITED STATES OR THE OTHER NAMED AREAS BEFORE THE RIGHT TO REIMBURSEMENT WILL ARISE. THIS REQUIREMENT IS IN ACCORD WITH THE EXPLANATORY STATEMENT OF THE BUREAU OF THE BUDGET IN CONNECTION WITH THE ALLOWANCES CONTAINED IN H.R. 10607, WHICH INTERPRETED THE BILL AS LIMITING AUTHORIZATION FOR REIMBURSEMENT TO THOSE INSTANCES WHERE BOTH THE OLD AND NEW STATIONS ARE LOCATED IN THE UNITED STATES (INCLUDING DISTRICT OF COLUMBIA), ITS TERRITORIES AND POSSESSIONS, THE COMMONWEALTH OF PUERTO RICO, AND THE CANAL ZONE. REPT. NO. 1357, JUNE 30, 1966, 89TH CONG., 2ND SESS., PAGE 8.

WHEN THE CONGRESS DESIRED TO MAKE THE EXPENSE REIMBURSABLE IF ONLY THE NEW STATION IS REQUIRED TO BE LOCATED IN THE UNITED STATES (AND OTHER NAMED PLACES) THE LAW SO STATED AS IN CONNECTION WITH THE ALLOWANCE FOR SUBSISTENCE EXPENSES FOR TEMPORARY QUARTERS CONTAINED IN SECTION 23/3). HOWEVER, WHEN BOTH THE OLD AND THE NEW STATIONS WERE REQUIRED TO BE LOCATED IN THE CONTINENTAL UNITED STATES OR THE UNITED STATES (AND OTHER SPECIFICALLY NAMED PLACES) THEN THE LAW SPELLED OUT THIS REQUIREMENT AS IN THE SUBSECTIONS DEALING WITH LOCATING A RESIDENCE AND EXPENSES IN CONNECTION WITH THE SALE OR PURCHASE OF A HOME, SUBSECTIONS 23/2) AND 23/4), RESPECTIVELY.

ON THE BASIS OF THE FOREGOING, QUESTIONS 2/A) AND 2/B) ARE ANSWERED IN THE NEGATIVE.