Franchise fund laws as published in United States Code, 2000 edition (effective January 1, 2001), annotated with amendments published subsequent to January 1, 2001.

[CITE: 31USC501 note unless otherwise noted]

Franchise Fund Pilot Programs

Pub. L. 103-356, title IV, Sec. 403, Oct. 13, 1994, 108 Stat. 3413, as amended by Pub. L. 104-208, div. A, title I, Sec. 101(f) [title VI, Sec. 627], Sept. 30, 1996, 110 Stat. 3009-314, 3009-360, provided that:
``(a) Establishment.--There is authorized to be established on a pilot program basis in each of six executive agencies a franchise fund. The Director of the Office of Management and Budget, after consultation with the chairman and ranking members of the Committees on Appropriations and Governmental Affairs of the Senate, and the Committees on Appropriations and Government Operations [now Committee on Government Reform] of the House of Representatives, shall designate the agencies.
``(b) Uses.--Each such fund may provide, consistent with guidelines established by the Director of the Office of Management and Budget, such common administrative support services to the agency and to other agencies as the head of such agency, with the concurrence of the Director, determines can be provided more efficiently through such a fund than by other means. To provide such services, each such fund is authorized to acquire the capital equipment, automated data processing systems, and financial management and management information systems needed. Services shall be provided by such funds on a competitive basis.
``(c) Funding.--(1) There are authorized to be appropriated to the franchise fund of each agency designated under subsection (a) such funds as are necessary to carry out the purposes of the fund, to remain available until expended. To the extent that unexpended balances remain available in other accounts for the purposes to be carried out by the fund, the head of the agency may transfer such balances to the fund. (2) Fees for services shall be established by the head of the agency at a level to cover the total estimated costs of providing such services. Such fees shall be deposited in the agency's fund to remain available until expended, and may be used to carry out the purposes of the fund. (3) Existing inventories, including inventories on order, equipment, and other assets or liabilities pertaining to the purposes of the fund may be transferred to the fund.
``(d) Report on Pilot Programs.--Within 6 months after the end of fiscal year 1997, the Director of the Office of Management and Budget shall forward a report on the results of the pilot programs to the Committees on Appropriations of the Senate and of the House of Representatives, and to the Committee on Governmental Affairs of the Senate and the Committee on Government Operations [now Committee on Government Reform] of the House of Representatives. The report shall contain the financial and program performance results of the pilot programs, including recommendations for--

``(1) the structure of the fund;
``(2) the composition of the funding mechanism;
``(3) the capacity of the fund to promote competition; and
``(4) the desirability of extending the application and implementation of franchise funds to other Federal agencies.

``(e) Procurement.--Nothing in this section shall be construed as relieving any agency of any duty under applicable procurement laws.
``(f) Termination.--The provisions of this section shall expire on October 1, 2001.''

[Amended by Public Law 107-67, Nov. 12, 2001,Sec. 634. Subsection (f) of section 403 of Public Law 103-356 (31 U.S.C. 501 note) is amended by striking ``October 1, 2001'' and inserting ``October 1, 2002''.]


Department of Commerce Franchise Fund Pilot

Pub. L. 106-553, Sec. 1(a)(2) [title II, Sec. 208], Dec. 21, 2000, 114 Stat. 2762, 2762A-79, provided in part: ``That an amount not to exceed 4 percent of the total annual income to such fund [Commerce franchise fund] may be retained in the fund for fiscal year 2001 and each fiscal year thereafter, to remain available until expended, to be used for the acquisition of capital equipment, and for the improvement and implementation of department financial management, ADP, and other support systems: Provided further, That such amounts retained in the fund for fiscal year 2001 and each fiscal year thereafter shall be available for obligation and expenditure only in accordance with section 605 of this Act [114 Stat. 2762, 2762A-104]: Provided further, That no later than 30 days after the end of each fiscal year, amounts in excess of this reserve limitation shall be deposited as miscellaneous receipts in the Treasury: Provided further, That such franchise fund pilot program shall terminate pursuant to section 403(f) of Public Law 103-356 [set out above].''

Similar provisions were contained in the following prior appropriation acts:

Pub. L. 106-113, div. B, Sec. 1000(a)(1) [title II, Sec. 209], Nov. 29, 1999, 113 Stat. 1535, 1501A-33.
Pub. L. 105-277, div. A, Sec. 101(b) [title II, Sec. 209], Oct. 21, 1998, 112 Stat. 2681-50, 2681-87.

[Amended by Public Law 108-7, Feb. 20, 2003, Sec. 207. The Secretary of Commerce may use the Commerce franchise fund for expenses and equipment necessary for the maintenance and operation of such administrative services as the Secretary determines may be performed more advantageously as central services, pursuant to section 403 of Public Law 103-356: Provided, That any inventories, equipment, and other assets pertaining to the services to be provided by such fund, either on hand or on order, less the related liabilities or unpaid obligations, and any appropriations made for the purpose of providing capital shall be used to capitalize such fund: Provided further, That such fund shall be paid in advance from funds available to the Department and other Federal agencies for which such centralized services are performed, at rates which will return in full all expenses of operation, including accrued leave, depreciation of fund plant and equipment, amortization of automated data processing (ADP) software and systems (either acquired or donated), and an amount necessary to maintain a reasonable operating reserve, as determined by the Secretary: Provided further, That such fund shall provide services on a competitive basis: Provided further, That an amount not to exceed 4 percent of the total annual income to such fund may be retained in the fund for fiscal year 2003 and each fiscal year thereafter, to remain available until expended, to be used for the acquisition of capital equipment, and for the improvement and implementation of department financial management, ADP, and other support systems: Provided further, That such amounts retained in the fund for fiscal year 2003 and each fiscal year thereafter shall be available for obligation and expenditure only in accordance with section 605 of this Act: Provided further, That no later than 30 days after the end of each fiscal year, amounts in excess of this reserve limitation shall be deposited as miscellaneous receipts in the Treasury: Provided further, That such franchise fund pilot program shall terminate pursuant to section 403(f) of Public Law 103-356.]


Department of the Interior Franchise Fund

Pub. L. 104-208, div. A, title I, Sec. 101(d) [title I, Sec. 113], Sept. 30, 1996, 110 Stat. 3009-181, 3009-200, as amended by Pub. L. 106-554, Sec. 1(a)(3) [title I, Sec. 120], Dec. 21, 2000, 114 Stat. 2763, 2763A-135, provided that: ``There is hereby established in the Treasury a franchise fund until October 1, 2002, to be available without fiscal year limitation, for costs of capitalizing and operating administrative services as the Secretary determines may be performed more advantageously as central services: Provided, That any inventories, equipment, and other assets pertaining to the services to be provided by such fund, either on hand or on order, less the related liabilities or unpaid obligations, and any appropriations made prior to the current year for the purpose of providing capital shall be used to capitalize such fund: Provided further, That such fund shall be paid in advance from funds available to the Department and other Federal agencies for which such centralized services are performed, at rates which will return in full all expenses of operation, including accrued leave, depreciation of fund plant and equipment, amortization of automatic data processing (ADP) software and systems (either acquired or donated) and an amount necessary to maintain a reasonable operating reserve, as determined by the Secretary: Provided further, That such fund shall provide services on a competitive basis: Provided further, That an amount not to exceed four percent of the total annual income to such fund may be retained in the fund for fiscal year 1997 and each fiscal year thereafter, to remain available until expended, to be used for the acquisition of capital equipment, and for the improvement and implementation of Department financial management, ADP, and other support systems: Provided further, That no later than thirty days after the end of each fiscal year amounts in excess of this reserve limitation shall be transferred to the Treasury.


Department of the Treasury Franchise Fund

Pub. L. 104-208, div. A, title I, Sec. 101(f) [title I], Sept. 30, 1996, 110 Stat. 3009-314, 3009-316, as amended by Pub. L. 106-554, Sec. 120, Dec. 21, 2000, provided in part that: ``There is hereby established in the Treasury a franchise fund until October 1, 2002, to be available without fiscal year limitation for expenses and equipment necessary for the maintenance and operation of such financial and administrative support services as the Secretary determines may be performed more advantageously as central services: Provided, That any inventories, equipment, and other assets pertaining to the services to be provided by such fund, either on hand or on order, less the related liabilities or unpaid obligations, and any appropriations made for the purpose of providing capital, shall be used to capitalize such fund: Provided further, That such fund shall be reimbursed or credited with the payments, including advanced payments, from applicable appropriations and funds available to the Department and other Federal agencies for which such administrative and financial services are performed, at rates which will recover all expenses of operation, including accrued leave, depreciation of fund plant and equipment, amortization of Automatic Data Processing (ADP) software and systems, and an amount necessary to maintain a reasonable operating reserve, as determined by the Secretary: Provided further, That such fund shall provide services on a competitive basis: Provided further, That an amount not to exceed 4 percent of the total annual income to such fund may be retained in the fund for fiscal year 1997 and each fiscal year thereafter, to remain available until expended, to be used for the acquisition of capital equipment and for the improvement and implementation of Treasury financial management, ADP, and other support systems: Provided further, That no later than 30 days after the end of each fiscal year, amounts in excess of this reserve limitation shall be deposited as miscellaneous receipts in the Treasury.''

[Amended by Public Law 108-7, Feb. 20, 2003, Sec. 123. The Treasury Department Appropriations Act, 1997 (as contained in section 101(f) of division A of Public Law 104-208), under the heading ``Treasury Franchise Fund'', as amended by section 120 of the Treasury Department Appropriations Act, 2001 (enacted pursuant to section 1(a)(3) of Public Law 106-554), is further amended by <<NOTE: 31 USC 501 note.>> striking ``until October 1, 2002'' and inserting ``until October 1, 2004''.]


Department of Veterans Affairs Franchise Fund Pilot

Pub. L. 104-204, title I, Sept. 26, 1996, 110 Stat. 2880, provided in part that: ``There is hereby established in the Treasury a franchise fund pilot, as authorized by section 403 of Public Law 103-356 [set out above], to be available as provided in such section for expenses and equipment necessary for the maintenance and operation of such administrative services as the Secretary determines may be performed more advantageously as central services: Provided, That any inventories, equipment and other assets pertaining to the services to be provided by the franchise fund, either on hand or on order, less the related liabilities or unpaid obligations, and any appropriations made hereafter for the purpose of providing capital, shall be used to capitalize the franchise fund: Provided further, That the franchise fund may be paid in advance from funds available to the Department and other Federal agencies for which such centralized services are performed, at rates which will return in full all expenses of operation, including accrued leave, depreciation of fund plant and equipment, amortization of automated data processing (ADP) software and systems (either acquired or donated), and an amount necessary to maintain a reasonable operating reserve, as determined by the Secretary: Provided further, That the franchise fund shall provide services on a competitive basis: Provided further, That an amount not to exceed four percent of the total annual income to such fund may be retained in the fund for fiscal year 1997 and each fiscal year thereafter, to remain available until expended, to be used for the acquisition of capital equipment and for the improvement and implementation of Departmental financial management, ADP, and other support systems: Provided further, That no later than thirty days after the end of each fiscal year amounts in excess of this reserve limitation shall be transferred to the Treasury: Provided further, That such franchise fund pilot shall terminate pursuant to section 403(f) of Public Law 103-356.''

[Amended by Public Law 108-7, Feb. 20, 2003, Sec. 108. Notwithstanding any other provision of law, the Department of Veterans Affairs shall continue the Franchise Fund pilot program authorized to be established by section 403 of Public Law 103-356 until October 1, 2003: Provided, That the Franchise Fund, established by title I of Public Law 104-204 to finance the operations of the Franchise Fund pilot program, shall continue until October 1, 2003.]


Environmental Protection Agency Franchise Fund

Pub. L. 104-204, title III, Sept. 26, 1996, 110 Stat. 2912, as amended, formerly set out as a note under this section, was transferred and is classified to section 4370e of Title 42, The Public Health and Welfare.

[CITE: 42USC4370e]

Sec. 4370e. Working capital fund in Treasury
There is hereby established in the Treasury a ``Working capital fund'', to be available without fiscal year limitation for expenses and equipment necessary for the maintenance and operation of such administrative services as the Administrator determines may be performed more advantageously as central services: Provided, That any inventories, equipment, and other assets pertaining to the services to be provided by such fund, either on hand or on order, less the related liabilities or unpaid obligations, and any appropriations made hereafter for the purpose of providing capital, shall be used to capitalize such fund: Provided further, That such fund shall be paid in advance or reimbursed from funds available to the Agency and other Federal agencies for which such centralized services are performed, at rates which will return in full all expenses of operation, including accrued leave, depreciation of fund plant and equipment, amortization of automated data processing (ADP) software and systems (either acquired or donated), and an amount necessary to maintain a reasonable operating reserve, as determined by the Administrator: Provided further, That such fund shall provide services on a competitive basis: Provided further, That an amount not to exceed four percent of the total annual income to such fund may be retained in the fund for fiscal year 1997 and each fiscal year thereafter, to remain available until expended, to be used for the acquisition of capital equipment and for the improvement and implementation of Agency financial management, ADP, and other support systems: Provided further, That no later than thirty days after the end of each fiscal year amounts in excess of this reserve limitation shall be transferred to the Treasury.
(Pub. L. 104-204, title III, Sept. 26, 1996, 110 Stat. 2912; Pub. L. 105-65, title III, Oct. 27, 1997, 111 Stat. 1374; Pub. L. 105-276, title III, Oct. 21, 1998, 112 Stat. 2499.)

[from EPA's web site:
In FY 1997, the Agency established a Working Capital Fund (WCF) through appropriation language and in conjunction with the authority of the Government Management Reform Act (GMRA) of 1994. Under GMRA, EPA participated in the Franchise Fund Pilot Program, however, in FY 1998 EPA's appropriation language established a permanent WCF, as agreed to by EPA and OMB. It currently provides services in two business lines: The Agency's computer and telecommunication services at the National Technology Services Division (NTSD), Research Triangle Park, North Carolina and Agency postage. These services are provided to all EPA offices. EPA employees who would like more information about the WCF may access it through the EPA intranet. Information about the WCF for the general public may be obtained from the EPA Comptroller's Office at (202) 260-9674 or the WCF Manager at (202) 260-1114.
EPA Order 2570.1 established the WCF.]

Federal Emergency Management Agency Franchise Fund Pilot

Pub. L. 104-204, title III, Sept. 26, 1996, 110 Stat. 2915, provided in part: ``For the establishment of a working capital fund for the Federal Emergency Management Agency, to be available without fiscal year limitation, for expenses and equipment necessary for maintenance and operations of such administrative services as the Director determines may be performed more advantageously as central services: Provided, That any inventories, equipment, and other assets pertaining to the services to be provided by such fund, either on hand or on order, less the related liabilities or unpaid obligations, and any appropriations made hereafter for the purpose of providing capital, shall be used to capitalize such fund: Provided further, That such fund shall be reimbursed or credited with advance payments from applicable appropriations and funds of the Federal Emergency Management Agency, other Federal agencies, and other sources authorized by law for which such centralized services are performed, including supplies, materials, and services, at rates that will return in full all expenses of operation, including accrued leave, depreciation of fund plant and equipment, amortization of automated data processing (ADP) software and systems (either acquired or donated), and an amount necessary to maintain a reasonable operating reserve as determined by the Director: Provided further, That income of such fund may be retained, to remain available until expended, for purposes of the fund: Provided further, That fees for services shall be established by the Director at a level to cover the total estimated costs of providing such services, such fees to be deposited in the fund shall remain available until expended for purposes of the fund: Provided further, That such fund shall terminate in a manner consistent with section 403(f) of Public Law 103-356.''


Federal Aviation Administration Franchise Fund

[CITE: 49USC40113]

Sec. 40113. Administrative
Administrative Services Franchise Fund
Pub. L. 104-205, title I, Sept. 30, 1996, 110 Stat. 2957, provided in part that: ``There is hereby established in the Treasury a fund, to be available without fiscal year limitation, for the costs of capitalizing and operating such administrative services as the FAA Administrator determines may be performed more advantageously as centralized services, including accounting, international training, payroll, travel, duplicating, multimedia and information technology services: Provided, That any inventories, equipment, and other assets pertaining to the services to be provided by such fund, either on hand or on order, less the related liabilities or unpaid obligations, and any appropriations made prior to the current year for the purpose of providing capital shall be used to capitalize such fund: Provided further, That such fund shall be paid in advance from funds available to the FAA and other Federal agencies for which such centralized services are performed, at rates which will return in full all expenses of operation, including accrued leave, depreciation of fund plant and equipment, amortization of Automated Data Processing (ADP) software and systems (either required or donated), and an amount necessary to maintain a reasonable operating reserve, as determined by the FAA Administrator: Provided further, That such fund shall provide services on a competitive basis: Provided further, That an amount not to exceed four percent of the total annual income to such fund may be retained in the fund for fiscal year 1997 and each year thereafter, to remain available until expended, to be used for the acquisition of capital equipment and for the improvement and implementation of FAA financial management, ADP, and support systems: Provided further, That no later than thirty days after the end of each fiscal year, amounts in excess of this reserve limitation shall be transferred to miscellaneous receipts in the Treasury.''