I

104TH CONGRESS

2D SESSION H. R. 2857

To provide for relief to Federal employees, Federal contractors, and employees

of Federal contractors for expenses incurred as a result of nonpayment

of basic pay or impediments against contract performance arising from

lapses in appropriations.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 5, 1996

Mrs. MINK of Hawaii (for herself, Mr. ABERCROMBIE, Mr. MILLER of California, Ms. PELOSI, Ms. JACKSON-LEE of Texas, Mr. MORAN, Mr. HOYER,

and Mr. DELLUMS) introduced the following bill; which was referred to

the Committee on Government Reform and Oversight, and in addition to

the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions

as fall within the jursidiction of the committee concerned

A BILL

To provide for relief to Federal employees, Federal contractors, and employees of Federal contractors for expenses

incurred as a result of nonpayment of basic pay or

impediments against contract performance arising from

lapses in appropriations.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. ENTITLEMENT TO REIMBURSEMENT FOR FI2 NANCIAL HARM INCURRED BY FEDERAL EM3 PLOYEES, FEDERAL CONTRACTORS, AND EM4 PLOYEES OF FEDERAL CONTRACTORS ARIS5 ING FROM FAILURE TO BE PAID DURING PE6 RIODS OF LAPSED APPROPRIATIONS.

7 (a) FINANCIAL HARM TO FEDERAL EMPLOYEES.—

8 Upon the termination of any period of lapsed appropria9 tions with respect to an agency or instrumentality of the

10 Federal Government or the District of Columbia, in addi11 tion to any basic pay payable to each individual who is

12 an officer or employee of such agency or instrumentality

13 during such period for any service performed during such

14 period, such officer or employee shall be entitled to reim15 bursement by such agency or instrumentality for financial

16 harm incurred by such individual resulting from—

17 (1) any failure to provide for the timely pay18 ment of basic pay to such individual for service per19 formed during such period, or

20 (2) the inability of such individual to earn basic

21 pay for service during such period under section

22 1342 of title 31, United States Code.

23 (b) FINANCIAL HARM TO FEDERAL CONTRAC24 TORS.—Upon the termination of any period of lapsed ap25 propriations with respect to an agency or instrumentality

26 of the Federal Government or the District of Columbia,
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1 in addition to any payment under a Federal contract due

2 to a Federal contractor during such period and any inter3 est penalty on such payment in accordance with section

4 3902 of title 31, United States Code, such contractor shall

5 be entitled to reimbursement by such agency or instru6 mentality for financial harm incurred by such contractor

7 resulting from—

8 (1) any failure to provide for the timely pay9 ment of payments due under the contract to the con10 tractor during such period, or

11 (2) the inability of such contractor to perform

12 the contract during such period.

13 (c) FINANCIAL HARM TO EMPLOYEES OF FEDERAL

14 CONTRACTORS.—Upon the termination of any period of

15 lapsed appropriations with respect to an agency or instru16 mentality of the Federal Government or the District of

17 Columbia, each individual who is an employee of a Federal

18 contractor or of a subcontractor under a Federal contract

19 in effect during such period shall be entitled to reimburse20 ment by such agency or instrumentality for financial harm

21 incurred by such individual resulting from—

22 (1) any failure by the contractor or subcontrac23 tor to provide for the timely payment of the individ24 ual for service performed during such period under

25 the contract or subcontract, or
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1 (2) the inability of such individual to earn pay

2 for service under the contract or subcontract during

3 such period.

4 SEC. 2. ADMINISTRATIVE REMEDY.

5 In any case in which an individual or contractor has

6 not been provided, within 60 days after the period of

7 lapsed appropriations involved, any reimbursement by an

8 agency or instrumentality of the Federal Government or

9 the District of Columbia to which the individual or con10 tractor is entitled under section 1, a claim may be made

11 by such individual or contractor against such agency or

12 instrumentality for recovery of such reimbursement. De13 terminations by the agency or instrumentality on such

14 claim shall be made on the record after opportunity for

15 an agency hearing. Any individual aggrieved by any final

16 determination by the agency or instrumentality under this

17 section may, during the 60-day period beginning on the

18 date the determination is issued, institute an action for

19 judicial review of the determination in any district court

20 of the United States in which an office of the agency or

21 instrumentality is located or in the United States District

22 Court for the District of Columbia.

23 SEC. 3. DEFINITIONS.

24 For purposes of this Act:
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1 (1) PERIOD OF LAPSED APPROPRIATIONS.—The

2 term ‘‘period of lapsed appropriations’’ means, in

3 connection with an agency or instrumentality of the

4 Federal Government or the District of Columbia,

5 any period during which appropriations are not

6 available due to the absence of the timely enactment

7 of any Act or joint resolution appropriating funds

8 for such agency or instrumentality.

9 (2) FINANCIAL HARM.—The term ‘‘financial

10 harm’’—

11 (A) in connection with any individual, in12 cludes—

13 (i) interest accrued on debts incurred

14 by the individual during the period of

15 lapsed appropriations necessary to meet

16 expenses which would have arisen irrespec17 tive of whether the period of lapsed appro18 priations had occurred,

19 (ii) penalties incurred by reason of in20 ability of the individual to make timely

21 payments of bills or other obligations

22 which would have become due irrespective

23 of whether the period of lapsed appropria24 tions had occurred,
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1 (iii) other monetary loss incurred by

2 reason of forfeiture of property or other3 wise, and

4 (iv) in the case of an individual who

5 is an employee of a Federal contractor,

6 wages foregone by the employee for any

7 service performed by the employee during

8 the period of lapsed appropriations that

9 were not later paid by the contractor; and

10 (B) in connection with any Federal con11 tractor, includes—

12 (i) interest accrued on debts incurred

13 by the contractor in connection with a

14 Federal contract during the period of

15 lapsed appropriations necessary to meet

16 expenses which would have arisen irrespec17 tive of whether the period of lapsed appro18 priations had occurred,

19 (ii) penalties incurred by reason of in20 ability of the contractor to make timely

21 payments of bills or other obligations

22 which would have become due irrespective

23 of whether the period of lapsed appropria24 tions had occurred, and
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1 (iii) other monetary loss incurred by

2 reason of forfeiture of property or other3 wise.

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