B-172721, MAR 13, 1972

B-172721, MAR 13, 1972

CIVILIAN EMPLOYEE - COSTS OF EXTRA COLLISION INSURANCE - REIMBURSEMENT - STATUTORY NOTICE DECISION DENYING THE CLAIM OF CHARLES A. LEINWEBER FOR REIMBURSEMENT OF THE COST OF EXTRA COLLISION INSURANCE PROCURED INCIDENT TO THE RENTAL OF AN AUTOMOBILE FOR OFFICIAL USE WHILE ON TEMPORARY DUTY. SINCE OMB CIRCULAR NO. A-7, PROMULGATING A NEW REVISION OF SGTR, BECAME EFFECTIVE ON OCTOBER 10, 1971, AND EXPRESSLY PROHIBITED REIMBURSEMENT FOR EXTRA COLLISION INSURANCE, THE COMP. GEN. MUST CONCLUDE THAT ALL PERSONS CONCERNED WERE ON ACTUAL OR CONSTRUCTIVE NOTICE OF ITS PROVISIONS AT THE TIME OF ITS EFFECTIVE DATE. ACCORDINGLY, THE CLAIM MUST BE DENIED.

TO MAJOR ALBERT J. BOYER:

REFERENCE IS MADE TO LETTER OF JANUARY 11, 1972, SWERI-CPF, FORWARDING A TRAVEL VOUCHER AND REQUESTING AN ADVANCE DECISION THEREON.

THE VOUCHER SUBMITTED PRESENTS THE CLAIM OF MR. CHARLES A. LEINWEBER FOR REIMBURSEMENT OF THE COST OF EXTRA COLLISION INSURANCE WHICH HE PROCURED INCIDENT TO RENTAL OF AN AUTOMOBILE FOR OFFICIAL USE BETWEEN OCTOBER 24 AND NOVEMBER 12, 1971, WHILE ON TEMPORARY DUTY. YOU REFER TO DOD CIVILIAN TRAVEL DETERMINATION 20-71, EFFECTIVE OCTOBER 10, 1971, WHICH EXPRESSLY PROHIBITED REIMBURSEMENT OF SUCH EXPENSES BUT WAS NOT RECEIVED AT YOUR INSTALLATION UNTIL NOVEMBER 5, 1971. SINCE THE LATTER DATE WAS AFTER THE EMPLOYEE HAD ALREADY PROCURED THE SUBJECT INSURANCE, YOU QUESTION WHETHER REIMBURSEMENT COULD BE MADE ACCORDING TO OUR DECISION B-172721, JULY 19, 1971.

THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS (SGTR), ISSUED UNDER AUTHORITY OF 5 U.S.C. 5707, ARE THE PRIMARY REGULATORY AUTHORITY FOR ALL CIVILIAN OFFICERS AND EMPLOYEES AS DEFINED IN 5 U.S.C. 5701. OFFICE OF MANAGEMENT AND BUDGET (OMB) CIRCULAR NO. A-7 WAS ISSUED ON AUGUST 17, 1971, AND PROMULGATED A NEW REVISION OF SGTR TO BECOME EFFECTIVE ON AND AFTER OCTOBER 10, 1971. THE REGULATIONS ARE STATUTORY IN NATURE AND HAVE THE EFFECT OF LAW.

THE REVISION OF AUGUST 17, 1971, INCLUDED A NEW PROVISION IN SECTION 3.2C WHICH STATES:

"DAMAGE WAIVER ON RENTAL AUTOMOBILES. IN CONNECTION WITH THE RENTAL OF AUTOMOBILES FROM COMMERCIAL SOURCES THE GOVERNMENT WILL NOT PAY NOR WILL IT REIMBURSE EMPLOYEES FOR THE COST OF THE COLLISION DAMAGE WAIVER OR COLLISION DAMAGE INSURANCE AVAILABLE IN COMMERCIAL RENTAL CONTRACTS FOR AN EXTRA FEE. THE WAIVER OR INSURANCE REFERRED TO IS THE TYPE OFFERED A RENTER TO RELEASE HIM FROM LIABILITY FOR DAMAGE TO THE RENTED AUTOMOBILE IN AMOUNTS UP TO THE AMOUNT DEDUCTIBLE (USUALLY $100) ON THE INSURANCE INCLUDED AS A PART OF THE RENTAL CONTRACT WITHOUT ADDITIONAL CHARGE. UNDER DECISIONS OF THE COMPTROLLER GENERAL THE AGENCY IN APPROPRIATE CIRCUMSTANCES IS AUTHORIZED TO PAY FOR DAMAGE TO THE RENTED AUTOMOBILE UP TO THE DEDUCTIBLE AMOUNT AS CONTAINED IN THE RENTAL CONTRACT SHOULD THE RENTED AUTOMOBILE BE DAMAGED WHILE BEING USED FOR OFFICIAL BUSINESS."

THIS SAME PROVISION WAS ADDED TO VOLUME 2 OF THE JOINT TRAVEL REGULATIONS (JTR) AS PARAGRAPH C6101-3. THE ADDITION WAS EFFECTED BY CHANGE 74 DATED DECEMBER 1, 1971, WITH A STATED EFFECTIVE DATE OF OCTOBER 10, 1971, WHICH COINCIDES WITH THE EFFECTIVE DATE STATED IN OMB CIRCULAR NO. A-7, PROMULGATED ON AUGUST 17, 1971. THE TRANSMITTAL NOTICE WITH JTR CHANGE 74 EXPLAINS THAT IT IMPLEMENTS THE CITED OMB CIRCULAR NO. A-7.

SINCE THE STATUTORY REGULATIONS FOR CIVILIAN PERSONNEL ARE SGTR, RATHER THAN JTR, AND SINCE NOTICE OF THE NEW PROVISION PROHIBITING REIMBURSEMENT FOR EXTRA COLLISION INSURANCE WAS DISSEMINATED ON AUGUST 17, 1971, WE CONCLUDE THAT ALL PERSONS CONCERNED WERE ON ACTUAL OR CONSTRUCTIVE NOTICE OF SUCH PROVISION AT THE TIME OF ITS EFFECTIVE DATE ON OCTOBER 10, 1971. IT IS THE SPECIAL RELATIONSHIP BETWEEN SGTR AND VOLUME 2 OF JTR, AS WELL AS THE FACTS, THAT DISTINGUISHES THIS CASE FROM THAT CONSIDERED IN B- 172721, JULY 19, 1971, WHICH PERTAINED TO A MEMBER OF THE MILITARY SERVICE WHOSE ENTITLEMENT WAS CONTROLLED BY VOLUME 1, JTR, THE SGTR NOT BEING INVOLVED.

ACCORDINGLY, THE VOUCHER MAY NOT BE PAID AND WILL BE RETAINED IN OUR OFFICE.