II

103D CONGRESS

2D SESSION S. 2514

To ensure economic equity for American women and their families by promoting fairness in the workplace; creating new economic opportunities for

women workers and women business owners; helping workers better meet

the competing demands of work and family; and enhancing economic

self-sufficiency through public and private pension reform and improved

child support enforcement.

IN THE SENATE OF THE UNITED STATES

OCTOBER 6 (legislative day, SEPTEMBER 12), 1994

Mr. DURENBERGER introduced the following bill; which was read twice and

referred to the Committee on Finance

A BILL

To ensure economic equity for American women and their

families by promoting fairness in the workplace; creating

new economic opportunities for women workers and

women business owners; helping workers better meet the

competing demands of work and family; and enhancing

economic self-sufficiency through public and private pension reform and improved child support enforcement.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Economic Equity Act’’.
2

•S 2514 IS

1 TITLE I—WORKPLACE FAIRNESS

2 Subtitle A—Equal Remedies Act

3 SEC. 101. SHORT TITLE.

4 This subtitle may be cited as the ‘‘Equal Remedies

5 Act’’.

6 SEC. 102. EQUALIZATION OF REMEDIES.

7 Section 1977A of the Revised Statutes, as added by

8 section 102 of the Civil Rights Act of 1991, is amended—

9 (1) in subsection (b)—

10 (A) by striking paragraph (3), and

11 (B) by redesignating paragraph (4) as

12 paragraph (3), and

13 (2) in subsection (c) by striking ‘‘section—’’

14 and all that follows through the period, and insert15 ing ‘‘section, any party may demand a jury trial.’’.

16 Subtitle B—Federal Employees

17 Fairness Act

18 SEC. 111. SHORT TITLE.

19 This subtitle may be cited as the ‘‘Federal Employee

20 Fairness Act’’.

21 SEC. 112. AMENDMENTS RELATING TO ADMINISTRATIVE

22 DETERMINATION OF FEDERAL EMPLOYEE

23 DISCRIMINATION CLAIMS.

24 (a) DEFINITIONS.—Section 701 of the Civil Rights

25 Act of 1964 (42 U.S.C. 2000e) is amended—
3

•S 2514 IS

1 (1) in paragraph (f) by striking ‘‘The term’’

2 and inserting ‘‘Except when it appears as part of the

3 term ‘Federal employee’, the term’’, and

4 (2) by adding at the end the following:

5 ‘‘(o) The term ‘Commission’ means the Equal Em6 ployment Opportunity Commission.

7 ‘‘(p) The term ‘entity of the Federal Government’

8 means an entity to which section 717(a) applies, except

9 that such term does not include the Library of Congress.

10 ‘‘(q) The term ‘Federal employee’ means an individ11 ual employed by, or who applies for employment with, an

12 entity of the Federal Government.

13 ‘‘(r) The term ‘Federal employment’ means employ14 ment by an entity of the Federal Government.

15 ‘‘(s) The terms ‘government’, ‘government agency’,

16 and ‘political subdivision’ do not include an entity of the

17 Federal Government.’’.

18 (b) EEOC DETERMINATION OF FEDERAL EMPLOY19 MENT DISCRIMINATION CLAIMS.—Section 717 of the Civil

20 Rights Act of 1964 (42 U.S.C. 2000e–16) is amended—

21 (1) in subsection (b)—

22 (A) by inserting ‘‘(1)’’ after ‘‘(b)’’,

23 (B) in the second sentence—
4

•S 2514 IS

1 (i) by redesignating paragraphs (1),

2 (2), and (3), as subparagraphs (A), (B),

3 and (C), respectively,

4 (ii) in the subparagraph (B), as so re5 designated, by striking ‘‘and’’ at the end,

6 (iii) in subparagraph (C), as so redes7 ignated, by striking the period at the end

8 and inserting ‘‘; and’’, and

9 (iv) by inserting after subparagraph

10 (C), as so redesignated, the following:

11 ‘‘(D) require each entity of the Federal Govern12 ment—

13 ‘‘(i) to make counseling available to Fed14 eral employees who choose to notify such entity

15 that they believe such entity has discriminated

16 against them in violation of subsection (a), for

17 the purpose of trying to resolve the matters

18 with respect to which such discrimination is al19 leged (Such entity shall assist such employee to

20 identify the respondent required by subsection

21 (c)(1) to be named in a complaint alleging such

22 violation, shall inform such Federal employee

23 individually of the procedures and deadlines

24 that apply under this section to a claim alleging

25 such discrimination, and shall make such coun-
5

•S 2514 IS

1 seling available throughout the administrative

2 process.);

3 ‘‘(ii) to establish a voluntary alternative

4 dispute process to resolve complaints, except

5 that a Federal employee’s decision to forgo such

6 process shall not affect the rights of such em7 ployee under this title;

8 ‘‘(iii) not to discourage Federal employees

9 from filing complaints on any matter relating to

10 discrimination in violation of this section; and

11 ‘‘(iv) not to require Federal employees to

12 participate in counseling made available under

13 clause (i) or in a dispute resolution process

14 made available under clause (ii).’’,

15 (C) in the third sentence by striking ‘‘The’’

16 and inserting the following:

17 ‘‘(2) The’’,

18 (D) in the fourth sentence by redesignating

19 paragraphs (1) and (2) as subparagraphs (A)

20 and (B), respectively,

21 (E) in the last sentence by striking ‘‘With’’

22 and inserting the following:

23 ‘‘(3) With’’, and

24 (F) by adding at the end the following:
6

•S 2514 IS

1 ‘‘(4)(A) Subject to subparagraph (B), an unlawful

2 employment practice of the kind described in section

3 704(a) is established under this section if an employee or

4 applicant for employment demonstrates that his making

5 a charge, testifying, assisting, or participating in any man6 ner in an investigation, proceeding, or hearing under this

7 title was a contributing factor in an adverse personnel ac8 tion that was taken or is to be taken against such em9 ployee or applicant.

10 ‘‘(B) Relief under this section may not be granted

11 if the respondent demonstrates by clear and convincing

12 evidence that it would have taken the same personnel ac13 tion in the absence of such disclosure.’’,

14 (2) by striking subsection (c),

15 (3) in subsection (d)—

16 (A) by inserting ‘‘(1)’’ after ‘‘(d)’’,

17 (B) by striking ‘‘(k)’’ and inserting ‘‘(j)’’,

18 (C) by striking ‘‘brought hereunder’’ and

19 inserting ‘‘commenced under this section’’, and

20 (D) by adding at the end the following:

21 ‘‘(2) The head of the department, agency, or unit in

22 which discrimination in violation of subsection (a) is al23 leged to have occurred shall be the defendant in a civil

24 action alleging such violation. If a department, unit, or

25 agency is named as the defendant, the court shall freely
7

•S 2514 IS

1 grant leave to amend the complaint to name the head of

2 such department, agency, or unit.

3 ‘‘(3) In any action or proceeding under this section,

4 the court, in its discretion, may allow the prevailing party

5 (other than an entity of the Federal Government) a rea6 sonable attorney’s fee (including expert fees) and costs as

7 a court has authority to award under section 706(k), as

8 amended from time to time, and the same interest to com9 pensate for delay in payment as in cases involving

10 nonpublic parties.’’,

11 (4) by redesignating subsections (d) and (e) as

12 subsections (o) and (p), respectively, and

13 (5) by inserting after subsection (b) the follow14 ing:

15 ‘‘(c)(1)(A) Except as provided in subparagraph (B),

16 a complaint filed by or on behalf of a Federal employee

17 or a class of Federal employees and alleging a claim of

18 discrimination arising under subsection (a) shall name as

19 the respondent, and be filed with, the head of the depart20 ment, agency, or unit in which such discrimination is al21 leged to have occurred, or with the Commission, not later

22 than 180 days after the alleged discrimination occurs.

23 ‘‘(B) If, not later than 180 days after the alleged dis24 crimination occurs, the complaint is filed—
8

•S 2514 IS

1 ‘‘(i) with such department, agency, or unit and

2 fails to name the head of the department, agency, or

3 unit as the respondent; or

4 ‘‘(ii) with any other entity of the Federal Gov5 ernment, regardless of the respondent named;

6 the complaint shall be considered to be filed in compliance

7 with subparagraph (A).

8 ‘‘(2)(A) If the complaint is filed with an entity of the

9 Federal Government other than the department, agency,

10 or unit in which such discrimination is alleged to have oc11 curred, then—

12 ‘‘(i) such entity (other than the Commission)

13 shall transmit the complaint to the Commission, not

14 later than 15 days after receiving the complaint; and

15 ‘‘(ii) the Commission shall transmit a copy of

16 the complaint, not later than 10 days after receiving

17 the complaint, to the head of the department, agen18 cy, or unit in which such discrimination is alleged to

19 have occurred (hereinafter in this section referred to

20 as the ‘respondent’).

21 ‘‘(3)(A) Not later than 3 days after the respondent

22 receives the complaint from a source other than the Com23 mission, the respondent shall notify the Commission that

24 the respondent has received the complaint and shall in25 form the Commission of the identity of the Federal em-
9

•S 2514 IS

1 ployee aggrieved by the discrimination alleged in the com2 plaint.

3 ‘‘(B) Not later than 10 days after the respondent or

4 the Merit Systems Protection Board receives the com5 plaint from a source other than the Commission, the re6 spondent or the Board shall transmit to the Commission

7 a copy of the complaint.

8 ‘‘(d) Throughout the period beginning on the date the

9 respondent receives the complaint and ending on the latest

10 date by which all administrative and judicial proceedings

11 available under this section have been concluded with re12 spect to such claim, the respondent shall collect and pre13 serve documents and information (including the com14 plaint) that are relevant to such claim, including the docu15 ments and information that comply with rules issued by

16 the Commission.

17 ‘‘(e)(1) The respondent shall make reasonable efforts

18 to conciliate each claim alleged in the complaint during—

19 ‘‘(A) the 30-day period; or

20 ‘‘(B) with the written consent of the aggrieved

21 Federal employee, the 60-day period;

22 beginning on the date the respondent receives the com23 plaint.
10

•S 2514 IS

1 ‘‘(2) Before the expiration of the applicable period

2 specified in paragraph (1) and with respect to such claim,

3 the respondent shall—

4 ‘‘(A) enter into a settlement agreement with

5 such Federal employee; or

6 ‘‘(B) give formal written notice to such Federal

7 employee that such Federal employee may, before

8 the expiration of the 90-day period beginning on the

9 date such Federal employee receives such notice, ei10 ther—

11 ‘‘(i) file with the Commission—

12 ‘‘(I) a written request for a deter13 mination of such claim under subsection

14 (f) by an administrative judge of the Com15 mission;

16 ‘‘(II) if such claim alleges discrimina17 tion in the Commission or alleges an action

18 appealable to the Merit Systems Protection

19 Board, a written request electing that a

20 determination of such claim be made under

21 the procedures specified in either subpara22 graph (A) or (B) of section 7702(a)(2) of

23 title 5, United States Code, or a request

24 described in subclause (I); or
11

•S 2514 IS

1 ‘‘(III) if such claim alleges a grievance

2 that is subject to section 7121 of title 5,

3 United States Code, but not appealable to

4 the Merit Systems Protection Board, a

5 written request to raise such claim under

6 the administrative and judicial procedures

7 provided in such section 7121 or a request

8 described in subclause (I); or

9 ‘‘(ii) commence a civil action in an appro10 priate district court of the United States for de

11 novo review of such claim.

12 ‘‘(3)(A) Such Federal employee may file a written re13 quest described in paragraph (2)(B)(i), or commence a

14 civil action described in paragraph (2)(B)(ii), at any

15 time—

16 ‘‘(i) after the expiration of the applicable period

17 specified in paragraph (1); and

18 ‘‘(ii) before the expiration of the 90-day period

19 specified in paragraph (2).

20 ‘‘(B) If such Federal employee files a written request

21 under subclause (II) or (III) of paragraph (2)(B)(i) and

22 in accordance with subparagraph (A), the Commission

23 shall transmit, not later than 10 days after receipt of such

24 request, the complaint to the appropriate agency for deter25 mination.
12

•S 2514 IS

1 ‘‘(f)(1) If such Federal employee files a written re2 quest under subsection (e)(2)(B)(i)(I) and in accordance

3 with subsection (e)(3)(A) with the Commission for a deter4 mination under this subsection of a claim with respect to

5 which notice is required by subsection (e)(2), then the

6 Commission shall transmit a copy of such request to the

7 respondent and shall appoint an administrative judge of

8 the Commission to determine such claim.

9 ‘‘(2) Immediately after receiving a copy of a request

10 under subsection (e)(2)(B)(i), the respondent shall trans11 mit—

12 ‘‘(A) to the Commission if such request is for

13 a determination under this subsection; or

14 ‘‘(B) to the Merit Systems Protection Board if

15 such request is for a determination be made under

16 the procedures specified in section 7702(a)(2)(A) of

17 title 5, United States Code;

18 a copy of all documents and information collected by the

19 respondent under subsection (d) with respect to such

20 claim.

21 ‘‘(3)(A)(i) If the administrative judge determines

22 there are reasonable grounds to believe that to carry out

23 the purposes of this section it is necessary to stay a per24 sonnel action by the respondent against the aggrieved

25 Federal employee, the administrative judge may request
13

•S 2514 IS

1 any member of the Commission to issue a stay against

2 such personnel action for 15 calendar days.

3 ‘‘(ii) A stay requested under clause (i) shall take ef4 fect on the earlier of—

5 ‘‘(I) the order of such member; and

6 ‘‘(II) the fourth calendar day (excluding Satur7 day, Sunday, and any legal public holiday) following

8 the date on which such stay is requested unless the

9 request is denied before the expiration of the 15-day

10 period beginning on such fourth day.

11 ‘‘(B) The administrative judge may request any

12 member of the Commission to extend, for a period not to

13 exceed 30 calendar days, a stay issued under subpara14 graph (A).

15 ‘‘(C) The administrative judge may request the Com16 mission to extend such stay for any period the Commission

17 considers to be appropriate beyond the period in effect

18 under subparagraph (A) or (B).

19 ‘‘(D)(i) Members of the Commission shall have au20 thority to issue and extend a stay for the periods referred

21 to in subparagraphs (A) and (B). The Commission shall

22 have authority to extend a stay in accordance with sub23 paragraph (C) for any period.

24 ‘‘(ii) The respondent shall comply with a stay in ef25 fect under this paragraph.
14

•S 2514 IS

1 ‘‘(4) The administrative judge shall determine wheth2 er the documents and information received under para3 graph (2) comply with subsection (d) and are complete

4 and accurate. If the administrative judge finds that the

5 respondent has failed to produce the documents and infor6 mation necessary to comply with such subsection, the ad7 ministrative judge shall, in the absence of good cause

8 shown by the respondent, impose any of the sanctions

9 specified in paragraph (6)(C) and shall require the re10 spondent—

11 ‘‘(A) to obtain any additional documents and

12 information necessary to comply with such sub13 section; and

14 ‘‘(B) to correct any inaccuracy in the docu15 ments and information so received.

16 ‘‘(5)(A) After examining the documents and informa17 tion received under paragraph (4), the administrative

18 judge shall issue an order dismissing—

19 ‘‘(i) any frivolous claim alleged in the com20 plaint; and

21 ‘‘(ii) the complaint if it fails to state a

22 nonfrivolous claim for which relief may be granted

23 under this section.

24 ‘‘(B)(i) If a claim or the complaint is dismissed under

25 subparagraph (A), the administrative judge shall give for-
15

•S 2514 IS

1 mal written notice to the aggrieved Federal employee that

2 such Federal employee may, before the expiration of the

3 90-day period beginning on the date such Federal em4 ployee receives such notice—

5 ‘‘(I) file with the Commission a written request

6 for appellate review of such order; or

7 ‘‘(II) commence a civil action in an appropriate

8 district court of the United States for de novo review

9 of such claim or such complaint.

10 ‘‘(ii) Such Federal employee may commence such civil

11 action in the 90-day period specified in clause (i).

12 ‘‘(6)(A)(i) If the complaint is not dismissed under

13 paragraph (5)(A), the administrative judge shall make a

14 determination, after an opportunity for a hearing, on the

15 merits of each claim that is not dismissed under such

16 paragraph. The administrative judge shall make a deter17 mination on the merits of any other nonfrivolous claim

18 under this title, and on any action such Federal employee

19 may appeal to the Merit Systems Protection Board, rea20 sonably expected to arise from the facts on which the com21 plaint is based.

22 ‘‘(ii) On the request of the aggrieved Federal em23 ployee, the administrative judge shall—
16

•S 2514 IS

1 ‘‘(I) determine whether the administrative pro2 ceeding with respect to such claim may be main3 tained as a class proceeding; and

4 ‘‘(II) if the administrative proceeding may be so

5 maintained, shall describe those whom the adminis6 trative judge finds to be members of such class.

7 ‘‘(B) With respect to such claim, a party may conduct

8 discovery by such means as may be available in a civil ac9 tion to the extent deemed appropriate by the administra10 tive judge.

11 ‘‘(C) If the aggrieved Federal employee or the re12 spondent fails without good cause to respond fully and in

13 a timely fashion to a request made or approved by the

14 administrative judge for information or the attendance of

15 a witness, and if such information or such witness is solely

16 in the control of the party who so fails to respond, then

17 the administrative judge shall—

18 ‘‘(i) draw an adverse inference that the re19 quested information, or the testimony of the re20 quested witness, would have reflected unfavorably on

21 the party who so fails to respond;

22 ‘‘(ii) consider the matters to which such infor23 mation or such testimony pertains to be established

24 in favor of the opposing party;
17

•S 2514 IS

1 ‘‘(iii) exclude other evidence offered by the

2 party who so fails to respond;

3 ‘‘(iv) grant full or partial relief, including—

4 ‘‘(I) relief of the kinds described in section

5 706(g); and

6 ‘‘(II) compensatory damages for unlawful

7 intentional discrimination (not an employment

8 practice that is unlawful because of its dispar9 ate impact) prohibited under this section, sub10 ject to the limitations specified in section

11 1977A(b)(3) of the Revised Statutes of the

12 United States;

13 to the aggrieved Federal employee; or

14 ‘‘(v) take such other action the administrative

15 judge considers to be appropriate.

16 ‘‘(D) In a hearing on a claim, the administrative

17 judge shall—

18 ‘‘(i) limit attendance to persons who have a di19 rect connection with such claim;

20 ‘‘(ii) bring out pertinent facts and relevant em21 ployment practices and policies, but—

22 ‘‘(I) exclude irrelevant or unduly repeti23 tious information; and

24 ‘‘(II) not apply the Federal Rules of Evi25 dence strictly;
18

•S 2514 IS

1 ‘‘(iii) permit all parties to examine and cross

2 examine witnesses; and

3 ‘‘(iv) require that testimony be given under

4 oath or affirmation.

5 ‘‘(E) At the request of any party or the administra6 tive judge, a transcript of all or part of such hearing shall

7 be provided in a timely manner and simultaneously to the

8 parties and the Commission. The respondent shall bear

9 the cost of providing such transcript.

10 ‘‘(F) The administrative judge shall have authority—

11 ‘‘(i) to administer oaths and affirmations;

12 ‘‘(ii) to regulate the course of hearings;

13 ‘‘(iii) to rule on offers of proof and receive evi14 dence;

15 ‘‘(iv) to issue subpoenas to compel—

16 ‘‘(I) the production of documents or infor17 mation by the entity of the Federal Government

18 in which discrimination is alleged to have oc19 curred; and

20 ‘‘(II) the attendance of witnesses who are

21 Federal officers or employees of such entity;

22 ‘‘(v) to request the Commission to issue subpoe23 nas to compel the production of documents or infor24 mation by any other entity of the Federal Govern25 ment and the attendance of other witnesses, except
19

•S 2514 IS

1 that any witness who is not an officer or employee

2 of an entity of the Federal Government may be com3 pelled only to attend any place—

4 ‘‘(I) less than 100 miles from the place

5 where such witness resides, is employed, trans6 acts business in person, or is served; or

7 ‘‘(II) at such other convenient place as is

8 fixed by the administrative judge;

9 and shall be paid fees and allowances, by the party

10 that requests the subpoena, to the same extent that

11 fees and allowances are paid to witnesses under

12 chapter 119 of title 28, United States Code, as

13 amended from time to time;

14 ‘‘(vi) to exclude witnesses whose testimony

15 would be unduly repetitious;

16 ‘‘(vii) to exclude any person from a hearing for

17 contumacious conduct, or for misbehavior, that ob18 structs such hearing; and

19 ‘‘(viii) to grant full or partial relief, including—

20 ‘‘(I) relief of the kinds described in section

21 706(g); and

22 ‘‘(II) compensatory damages for unlawful

23 intentional discrimination (not an employment

24 practice that is unlawful because of its dispar25 ate impact) prohibited under this section, sub-
20

•S 2514 IS

1 ject to the limitations specified in section

2 1977A(b)(3) of the Revised Statutes of the

3 United States.

4 ‘‘(G) The administrative judge and the Commission

5 shall have authority to award—

6 ‘‘(i) a reasonable attorney’s fee (including ex7 pert fees) and costs as a court has authority to

8 award under section 706(k), as amended from time

9 to time; and

10 ‘‘(ii) the same interest to compensate for delay

11 in payment as in cases involving nonpublic parties.

12 ‘‘(H) The Commission shall have authority to issue

13 subpoenas described in subparagraph (F)(v).

14 ‘‘(I) In the case of contumacy or failure to obey a

15 subpoena issued under subparagraph (F) or (H), the Unit16 ed States district court for the judicial district in which

17 the person to whom the subpoena is addressed resides or

18 is served may issue an order requiring such person to ap19 pear at any designated place to testify or to produce docu20 mentary or other evidence.

21 ‘‘(7)(A) Except as provided in subparagraph (B), the

22 administrative judge shall issue a written order making

23 the determination required by paragraph (6)(A), and

24 granting or denying relief, not later than—
21

•S 2514 IS

1 ‘‘(i) 210 days after the complaint containing

2 such claim is filed on behalf of a Federal employee;

3 or

4 ‘‘(ii) 270 days after the complaint containing

5 such claim is filed on behalf of a class of Federal

6 employees;

7 except that these time periods shall not begin running

8 until 30 days after the administrative judge is assigned

9 to the case if the administrative judge certifies, in writing,

10 that such 30-day period is needed to secure additional doc11 uments or information from the respondent to have a com12 plete administrative record.

13 ‘‘(B) The administrative judge shall issue such order

14 not later than 30 days after the applicable period specified

15 in subparagraph (A) if the administrative judge certifies

16 in writing, before the expiration of such applicable pe17 riod—

18 ‘‘(i) that such 30-day period is necessary to

19 make such determination; and

20 ‘‘(ii) the particular and unusual circumstances

21 that prevent the administrative judge from comply22 ing with the applicable period specified in subpara23 graph (A).

24 ‘‘(C) The administrative judge may apply to the Com25 mission to extend any period applicable under subpara-
22

•S 2514 IS

1 graph (A) or (B) if manifest injustice would occur in the

2 absence of such an extension.

3 ‘‘(D) The Commission—

4 ‘‘(i) may not grant such extension; or

5 ‘‘(ii) shall terminate such extension;

6 if the aggrieved Federal employee shows that such exten7 sion would prejudice a claim of, or otherwise harm, such

8 Federal employee.

9 ‘‘(E) In addition to findings of fact and conclusions

10 of law, such order shall include formal written notice to

11 each party that before the expiration of the 90-day period

12 beginning on the date such party receives such order—

13 ‘‘(i) the aggrieved Federal employee may com14 mence a civil action in an appropriate district court

15 of the United States for de novo review of a claim

16 with respect to which such order is issued; and

17 ‘‘(ii) unless and until a civil action is com18 menced in such 90-day period under clause (i) with

19 respect to such claim, any party may file with the

20 Commission a written request for appellate review of

21 the determination made, and relief granted or de22 nied, in such order with respect to such claim.

23 ‘‘(F) Such Federal employee may commence such

24 civil action at any time—
23

•S 2514 IS

1 ‘‘(i) after the expiration of the applicable period

2 specified in subparagraph (A) or (B); and

3 ‘‘(ii) before the expiration of the 90-day period

4 beginning on the date such Federal employee re5 ceives an order described in subparagraph (A).

6 ‘‘(G) If such order applies to more than one claim

7 and if such employee neither—

8 ‘‘(i) commences a civil action in accordance with

9 subparagraph (E)(i); nor

10 ‘‘(ii) requests appellate review in accordance

11 with subparagraph (E)(ii);

12 with respect to a particular claim, then the determination

13 made, and relief granted, in such order with respect to

14 such particular claim shall be enforceable immediately.

15 ‘‘(g)(1) If a party files timely a written request in

16 accordance with subsection (f)(5)(B)(i) or (f)(7)(E)(ii)

17 with the Commission for appellate review of the deter18 mination made, and relief granted or denied, with respect

19 to a claim in such order, then the Commission shall imme20 diately transmit a copy of such request to the other parties

21 involved and to the administrative judge who issued such

22 order.

23 ‘‘(2) Not later than 7 days after receiving a copy of

24 such request, the administrative judge shall transmit to

25 the Commission the record of the proceeding on which
24

•S 2514 IS

1 such order is based, including all documents and informa2 tion collected by the respondent under subsection (d).

3 ‘‘(3)(A) After allowing the parties to file briefs with

4 respect to such determination, the Commission shall issue

5 an order with respect to such claim affirming, reversing,

6 or modifying the applicable provisions of the order of the

7 administrative judge not later than—

8 ‘‘(i) 150 days after receiving such request; or

9 ‘‘(ii) 30 days after such 150-day period if the

10 Commission certifies in writing, before the expiration

11 of such 150-day period—

12 ‘‘(I) that such 30-day period is necessary

13 to review such claim; and

14 ‘‘(II) the particular and unusual cir15 cumstances that prevent the Commission from

16 complying with clause (i).

17 ‘‘(B) The Commission shall affirm the determination

18 made, and relief granted or denied, by the administrative

19 judge with respect to such claim if such determination and

20 such relief are supported by substantial evidence in the

21 record taken as a whole and are otherwise in accordance

22 with law. The findings of fact of the administrative judge

23 shall be conclusive unless the Commission determines that

24 they are clearly erroneous.
25

•S 2514 IS

1 ‘‘(C) In addition to findings of fact and conclusions

2 of law, the Commission shall include in its order formal

3 written notice to the aggrieved Federal employee that, be4 fore the expiration of the 90-day period beginning on the

5 date such Federal employee receives such order, such Fed6 eral employee may commence a civil action in an appro7 priate district court of the United States for de novo re8 view of a claim with respect to which such order is issued.

9 ‘‘(D) Such Federal employee may commence such

10 civil action at any time—

11 ‘‘(i) after the expiration of the applicable period

12 specified in subparagraph (A); and

13 ‘‘(ii) before the expiration of the 90-day period

14 specified in subparagraph (C).

15 ‘‘(h)(1) In addition to the periods authorized by sub16 sections (f)(7)(E) and (g)(3)(D)—

17 ‘‘(A) during the period beginning 300 days

18 after an aggrieved Federal employee timely requests

19 an administrative determination under subsection (f)

20 with respect to a claim and ending on the date the

21 administrative judge issues an order under such sub22 section with respect to such claim; and

23 ‘‘(B) during the period beginning 180 days

24 after such Federal employee timely requests appel25 late review under subsection (g) of such determina-
26

•S 2514 IS

1 tion with respect to such claim and ending on the

2 date the Commission issues an order under such

3 subsection with respect to such claim;

4 such Federal employee may commence a civil action in an

5 appropriate district court of the United States for de novo

6 review of such claim.

7 ‘‘(2) Whenever a civil action is commenced timely and

8 otherwise in accordance with this section to determine the

9 merits of a claim arising under this section, the jurisdic10 tion of the administrative judge or the Commission (as

11 the case may be) to determine the merits of such claim

12 shall terminate.

13 ‘‘(i) A Federal employee who prevails on a claim aris14 ing under this section, or the Commission, may bring a

15 civil action in an appropriate district court of the United

16 States to enforce—

17 ‘‘(1) the provisions of a settlement agreement

18 applicable to such claim;

19 ‘‘(2) the provisions of an order issued by an ad20 ministrative judge under subsection (f)(7)(A) appli21 cable to such claim if—

22 ‘‘(A) a request is not filed timely under

23 subsection (g)(1) for appellate review by the

24 Commission; and
27

•S 2514 IS

1 ‘‘(B) a civil action is not commenced time2 ly under subsection (g)(3)(D) for de novo re3 view;

4 of such claim; or

5 ‘‘(3) the provisions of an order issued by the

6 Commission under subsection (g)(3)(A) applicable to

7 such claim if a civil action is not commenced timely

8 under subsection (g)(3)(D) for de novo review of

9 such claim.

10 ‘‘(j) Any amount awarded under this section (includ11 ing fees, costs, and interest awarded under subsection

12 (f)(6)(G)), or under title 28 of the United States Code,

13 with respect to a violation of subsection (a), shall be paid

14 by the entity of the Federal Government that violated such

15 subsection from any funds made available to such entity

16 by appropriation or otherwise.

17 ‘‘(k) An entity of the Federal Government against

18 which a claim of discrimination is alleged in a complaint

19 filed in an administrative proceeding or a civil action

20 under this section shall grant the aggrieved Federal em21 ployee paid administrative leave for time reasonably ex22 pended to prepare for, and participate in, such proceeding

23 or action. Such leave shall be granted in accordance with

24 regulations issued by the Commission, except that such

25 leave shall include reasonable time for—
28

•S 2514 IS

1 ‘‘(1) preparation of a complaint based on such

2 allegation;

3 ‘‘(2) attendance at such proceeding or action;

4 ‘‘(3) attendance at depositions;

5 ‘‘(4) meetings with counsel; and

6 ‘‘(5) other ordinary and legitimate undertakings

7 in such proceeding or action, that require the pres8 ence of such Federal employee.

9 ‘‘(l)(1) In enforcing compliance with an order issued

10 by an administrative judge or the Commission, the Com11 mission may make a written determination that—

12 ‘‘(A) any officer or employee of the agency, de13 partment, or unit charged with complying with such

14 order, or

15 ‘‘(B) any officer or employee of the United

16 States determined to be responsible for the failure of

17 the agency, department, or unit to comply with such

18 order,

19 who is not an officer or employee appointed by the Presi20 dent by and with the advice and consent of the Senate,

21 shall not be entitled to receive payment for service as an

22 officer or employee for the period during which such order

23 has not been complied with. The Commission shall certify

24 to the Comptroller General of the United States that a

25 determination under this paragraph has been made, and
29

•S 2514 IS

1 no payment shall be made out of the Treasury of the Unit2 ed States for any service specified in such determination.

3 ‘‘(2) In enforcing compliance with such order with re4 spect to any officer or employee described in subparagraph

5 (A) or (B) of paragraph (1) who is an officer or employee

6 appointed by the President by and with the advice and

7 consent of the Senate, the Commission may notify the

8 President that such officer or employee has failed to obey

9 such order.

10 ‘‘(m) If with respect to the merits of a claim of inten11 tional discrimination (other than an employment practice

12 that is unlawful because of its disparate impact) prohib13 ited by this section, a Federal employee prevails in a pro14 ceeding under subsection (f) or a civil action commenced

15 under this section, the finder of fact in such proceeding

16 shall identify each individual believed to have engaged in

17 conduct that is the basis of such discrimination. Not later

18 than 15 days after issuing an order finding liability under

19 this section, the administrative judge or the district court

20 involved shall notify the Office of Special Counsel of the

21 identity of such individual and the fact that such individ22 ual is believed to have engaged in conduct that is the basis

23 of liability found on such claim in such proceeding or ac24 tion.
30

•S 2514 IS

1 ‘‘(n) This section, as in effect immediately before the

2 effective date of the Federal Employee Fairness Act of

3 1993, shall apply with respect to employment in the Li4 brary of Congress.’’.

5 SEC. 113. AMENDMENTS TO THE AGE DISCRIMINATION IN

6 EMPLOYMENT ACT AND THE REHABILITA7 TION ACT OF 1973.

8 (a) ENFORCEMENT BY EEOC.—(1) Section 15 of the

9 Age Discrimination in Employment Act of 1967 (29

10 U.S.C. 633a) is amended—

11 (A) by striking subsections (c) and (d), and

12 (B) by inserting after subsection (b) the follow13 ing:

14 ‘‘(c)(1)(A) Except as provided in subparagraph (B),

15 any individual aggrieved by a violation of subsection (a)

16 of this section may file a complaint with the Commission

17 in accordance with section 717 of the Civil Rights Act of

18 1964.

19 ‘‘(B) Subsections (c) and (d) of this section, as in

20 effect immediately before the effective date of the Federal

21 Employee Fairness Act of 1993, shall apply with respect

22 to employment in the Library of Congress.

23 ‘‘(2) Except as provided in paragraph (1)(B) and

24 subsection (d), such section 717 shall apply to a violation

25 alleged in a complaint filed under paragraph (1) in the
31

•S 2514 IS

1 same manner as such section applies to a claim arising

2 under section 717 of such Act.

3 ‘‘(d)(1) If an individual aggrieved by a violation of

4 this section does not file a complaint under subsection

5 (c)(1), such individual may commence a civil action—

6 ‘‘(A) not less than 30 days after filing with the

7 Commission a notice of intent to commence such ac8 tion; and

9 ‘‘(B) not more than 2 years after the alleged

10 violation of this section occurs;

11 in an appropriate district court of the United States for

12 de novo review of such violation.

13 ‘‘(2) On receiving such notice, the Commission

14 shall—

15 ‘‘(A) promptly notify all persons named in such

16 notice as prospective defendants in such action; and

17 ‘‘(B) take any appropriate action to ensure the

18 elimination of any unlawful practice.

19 ‘‘(3) Section 717(o) of the Civil Rights Act of 1964

20 (42 U.S.C. 2000e–16(o)) shall apply to civil actions com21 menced under this subsection in the same manner as such

22 section applies to civil actions commenced under section

23 717 of the Civil Rights Act of 1964.’’.

24 (2) Section 505 of the Rehabilitation Act of 1973 (29

25 U.S.C. 794a) is amended—
32

•S 2514 IS

1 (A) in subsection (a)(1)—

2 (i) by inserting ‘‘(A)’’ after ‘‘(a)(1)’’,

3 (ii) by striking ‘‘706(k)’’ and inserting

4 ‘‘706(j)’’,

5 (iii) by striking ‘‘through (k)’’ and insert6 ing ‘‘through (j)’’, and

7 (iv) by adding at the end the following:

8 ‘‘(B) The first sentence of this paragraph, as in effect

9 immediately before the effective date of the Federal Em10 ployee Fairness Act of 1993, shall apply with respect to

11 employment in the Library of Congress.’’, and

12 (B) in subsection (b) by striking ‘‘In’’ and in13 serting ‘‘Except as provided in subsection (a)(1),

14 in’’.

15 (b) OPPORTUNITY TO COMMENCE CIVIL ACTION.—

16 If a complaint filed under section 15 of the Age Discrimi17 nation in Employment Act of 1967 (29 U.S.C. 633a), or

18 section 501 of the Rehabilitation Act of 1973 (29 U.S.C.

19 791)), with the Equal Employment Opportunity Commis20 sion is pending in the period beginning on the date of the

21 enactment of this Act and ending on December 31, 1994,

22 the individual who filed such complaint may commence a

23 civil action under such section not later than June 30,

24 1995.
33

•S 2514 IS

1 SEC. 114. AMENDMENTS TO TITLE 5 OF THE UNITED

2 STATES CODE.

3 (a) GRIEVANCE PROCEDURES.—Section 7121 of title

4 5, United States Code, is amended—

5 (1) in subsection (a)(1) by inserting ‘‘adminis6 trative’’ after ‘‘exclusive’’, and

7 (2) in subsection (d)—

8 (A) by inserting ‘‘(1)’’ after ‘‘(d)’’,

9 (B) in the first and second sentences by

10 striking ‘‘An’’ and inserting ‘‘Except as pro11 vided in paragraph (2), an’’,

12 (C) in the last sentence by striking ‘‘Selec13 tion’’ and all that follows through ‘‘any other’’,

14 and inserting the following:

15 ‘‘(3) An employee may commence, not later than 120

16 days after a final decision, a civil action in an appropriate

17 district court of the United States for de novo review of

18 a’’, and

19 (D) by inserting after the second sentence

20 the following:

21 ‘‘(2) Matters covered under section 7702, or under

22 a law administered by the Equal Employment Opportunity

23 Commission, may be raised under the negotiated grievance

24 procedure in accordance with this section only if an em25 ployee elects under section 717(e)(2)(B)(i)(III) of the Civil

26 Rights Act of 1964 to proceed under this section.’’.
34

•S 2514 IS

1 (b) ACTIONS INVOLVING DISCRIMINATION.—Section

2 7702 of title 5, United States Code, is amended to read

3 as follows:

4 ‘‘§ 7702. Actions involving discrimination

5 ‘‘(a)(1) Notwithstanding any other provision of law,

6 in the case of any employee or applicant for employment

7 who—

8 ‘‘(A) is affected by—

9 ‘‘(i) an action which the employee or appli10 cant may appeal to the Merit Systems Protec11 tion Board, or

12 ‘‘(ii) an action, not described in clause

13 (i)—

14 ‘‘(I) on the part the Equal Employ15 ment Opportunity Commission, and

16 ‘‘(II) with respect to which the em17 ployee or applicant makes an election

18 under section 717(e)(2)(B)(i)(II) of the

19 Civil Rights Act of 1964, and

20 ‘‘(B) alleges that a basis for the action was dis21 crimination prohibited by—

22 ‘‘(i) section 717 of the Civil Rights Act of

23 1964 (42 U.S.C. 2000a–16),

24 ‘‘(ii) section 6(d) of the Fair Labor Stand25 ards Act of 1938 (29 U.S.C. 206(d)),
35

•S 2514 IS

1 ‘‘(iii) section 501 of the Rehabilitation Act

2 of 1973 (29 U.S.C. 791),

3 ‘‘(iv) sections 12 and 13 of the Age Dis4 crimination in Employment Act of 1967 (29

5 U.S.C. 631, 633a), or

6 ‘‘(v) any rule, regulation, or policy directive

7 prescribed under any provision of law described

8 in clauses (i) through (iv) of this subparagraph,

9 the employee or applicant may raise the action as provided

10 in paragraph (2).

11 ‘‘(2) For purposes of paragraph (1), the employee

12 shall raise the action by filing a complaint with the Equal

13 Employment Opportunity Commission in accordance with

14 section 717 of the Civil Rights Act of 1964 and shall make

15 a request under section 717(e)(2)(B)(i) selecting the pro16 cedures specified in one of the following subparagraphs:

17 ‘‘(A) The administrative and judicial procedures

18 provided under sections 7701 and 7703.

19 ‘‘(B) The administrative and judicial procedures

20 provided under section 7121.

21 ‘‘(C) The administrative and judicial procedures

22 provided under section 717 of the Civil Rights Act

23 of 1964.

24 ‘‘(3) The agency (including the Board and the Equal

25 Employment Opportunity Commission) that carries out
36

•S 2514 IS

1 such procedures shall apply the substantive law that is ap2 plied by the agency that administers the particular law

3 referred to in subsection (a)(1) that prohibits the conduct

4 alleged to be the basis of the action referred to in sub5 section (a)(1)(A).

6 ‘‘(b) If—

7 ‘‘(1) an employee elects the procedures specified

8 in subsection (a)(2)(C), and

9 ‘‘(2) the Equal Employment Opportunity Com10 mission dismisses under section 717(f)(5)(A) of the

11 Civil Rights Act of 1964 a claim that is based on

12 the action raised by the employee,

13 then the employee shall have 20 days in which to raise

14 the action under the procedures specified in subparagraph

15 (A) or (B) of subsection (a)(2), except that no allegation

16 of a kind described in subsection (a)(1)(B) may be raised

17 under this subsection.

18 ‘‘(c) If at any time after the 120th day following an

19 election made under section 717(e)(2)(B)(i) of the Civil

20 Rights Act of 1964 to raise an action under the proce21 dures specified in subsection (a)(2)(A) there is no judi22 cially reviewable action, an employee shall be entitled to

23 file, not later than 240 days after making such election,

24 a civil action in an appropriate district court of the United
37

•S 2514 IS

1 States for de novo review of the action raised under sub2 section (a).

3 ‘‘(d) Nothing in this section shall be construed to af4 fect the right to trial de novo under any provision of law

5 described in subsection (a)(1) after a judicially reviewable

6 action.’’.

7 (c) DISCIPLINARY ACTION.—(1) Section 1214 of title

8 5, United States Code, is amended by adding at the end

9 the following:

10 ‘‘(g)(1) Whenever the Office of Special Counsel re11 ceives any notification, in accordance with section 717(m)

12 of the Civil Rights Act of 1964, with respect to a claim

13 arising under section 717(a) of the Civil Rights Act of

14 1964, section 15(a) of the Age Discrimination in Employ15 ment Act of 1967, or section 501 of the Rehabilitation

16 Act of 1973, the Special Counsel shall investigate the mat17 ter to the extent necessary to determine whether there are

18 reasonable grounds to believe that a prohibited personnel

19 practice described in section 2302(b)(1) has occurred and,

20 if so, shall seek the appropriate disciplinary action under

21 section 1215.

22 ‘‘(2) A determination under this subsection shall be

23 made not later than 180 days after the appropriate date

24 under paragraph (3) for the last applicable event described

25 in such paragraph.
38

•S 2514 IS

1 ‘‘(3)(A) With respect to a claim—

2 ‘‘(i) to which an order issued by an administra3 tive judge of the Equal Employment Opportunity

4 Commission applies, and

5 ‘‘(ii) with respect to which the aggrieved em6 ployee neither—

7 ‘‘(I) commences a civil action in accord8 ance with section 717(f)(7)(E)(i) of the Civil

9 Rights Act of 1964, nor

10 ‘‘(II) requests appellate review in accord11 ance with section 717(f)(7)(E)(ii) of the Civil

12 Rights Act of 1964,

13 the appropriate date is the date on which the Office of

14 Special Counsel receives notification (referred to in para15 graph (1)) from the administrative judge.

16 ‘‘(B) With respect to a claim—

17 ‘‘(i) to which an order issued by the Equal Em18 ployment Opportunity Commission applies, and

19 ‘‘(ii) with respect to which the aggrieved em20 ployee does not commence a civil action in accord21 ance with section 717(g)(3)(D),

22 the appropriate date is the date on which the Office of

23 Special Counsel receives notification (referred to in para24 graph (1)) from the Commission.
39

•S 2514 IS

1 ‘‘(C) With respect to a claim to which a final judg2 ment issued by a court of the United States applies, the

3 appropriate date is the date on which the Office of Special

4 Counsel receives notification (referred to in paragraph (1))

5 from such court.

6 ‘‘(4) For the purpose of this subsection—

7 ‘‘(A) the term ‘order’ means an order issued on

8 the merits;

9 ‘‘(B) the term ‘judgment’ means a judgment is10 sued on the merits; and

11 ‘‘(C) the term ‘final judgment’ means a judg12 ment that is either—

13 ‘‘(i) not reviewed by any other court that

14 has authority to review such judgment; or

15 ‘‘(ii) not reviewable by any other court.’’.

16 (2) Section 1218 of title 5, United States Code, is

17 amended—

18 (A) by inserting ‘‘(a)’’ before the first sentence;

19 and

20 (B) by adding at the end the following:

21 ‘‘(b) Any statistical or other information provided

22 under the first sentence of subsection (a) shall specify the

23 extent to which such information relates to any matter re24 ferred to in section 1214(g).’’.
40

•S 2514 IS

1 (d) RECORDKEEPING.—(1) Chapter 23 of title 5,

2 United States Code, is amended by adding at the end the

3 following:

4 ‘‘§ 2306. Federal personnel records

5 ‘‘(a) For the purpose of this section—

6 ‘‘(1) the term ‘personnel action’ has the mean7 ing given such term in section 2302(a)(2)(A);

8 ‘‘(2) the term ‘record’ has the meaning given

9 such term in section 552a(a)(4); and

10 ‘‘(3) the term ‘employee’ means—

11 ‘‘(A) an employee as defined by section

12 2105; and

13 ‘‘(B) an employee of the United States

14 Postal Service or the Postal Rate Commission;

15 but does not include any employee with respect to

16 whom section 117, or title III (excluding section

17 320), of the Civil Rights Act of 1991 applies.

18 ‘‘(b) Records relating to any personnel action taken

19 with respect to an employee shall be maintained by the

20 employing authority for at least the greater of—

21 ‘‘(1) 270 days after the effective date of the

22 personnel action to which they relate; or

23 ‘‘(2) the period of time otherwise required

24 under applicable provisions of law, rule, or regula25 tion, if any.
41

•S 2514 IS

1 ‘‘(c) The Office of Personnel Management shall pre2 scribe regulations for the implementation of this section

3 by an Executive agency.’’.

4 (2) The table of sections for chapter 23 of title 5,

5 United States Code, is amended by adding at the end the

6 following:

‘‘2306. Federal personnel records.’’.

7 (e) FILING DEADLINE.—Section 7703(b)(2) of title

8 5, United States Code, is amended by striking ‘‘30 days’’

9 and inserting ‘‘90 days’’.

10 (f) RIGHT TO INTERVENE.—Section 1212(c)(2) of

11 title 5, United States Code, is amended—

12 (1) by striking ‘‘(2)’’ and inserting ‘‘(2)(A)’’;

13 and

14 (2) by adding at the end the following:

15 ‘‘(B) Consent under subparagraph (A) shall not be

16 required, in the case of an appeal from an action, if—

17 ‘‘(i) section 7513(d) is the provision making the

18 action appealable to the Board;

19 ‘‘(ii) the appeal is brought by an individual with

20 respect to whom notification has been received by

21 the Office of Special Counsel under section 717(m)

22 of the Civil Rights Act of 1964; and

23 ‘‘(iii) 1 of the grounds for the action being ap24 pealed is discrimination of a type described in sec25 tion 2302(b)(1).’’.
42

•S 2514 IS

1 SEC. 115. TECHNICAL AMENDMENTS.

2 Section 717(b) of the Civil Rights Act of 1964 (42

3 U.S.C. 2000e–16(b)) is amended by striking ‘‘Civil Service

4 Commission’’ each place it appears and inserting ‘‘Com5 mission’’.

6 SEC. 116. ISSUANCE OF PROCEDURAL GUIDELINES AND NO7 TICE RULES.

8 After providing notice in accordance with section

9 553(b) of title 5, United States Code, and not later than

10 1 year after the date of the enactment of this Act, the

11 Equal Employment Opportunity Commission shall issue—

12 (1) rules to assist entities of the Federal Gov13 ernment to comply with section 717(d) of the Civil

14 Rights Act of 1964, as added by section 112 of this

15 Act, and

16 (2) rules establishing—

17 (A) a uniform written official notice to be

18 used to comply with section 717 of such Act, as

19 added by section 112 of this Act, and

20 (B) detailed requirements applicable to col21 lecting and preserving documents and informa22 tion under section 717(d), as added by section

23 112 of this Act.

24 SEC. 117. RULES OF CONSTRUCTION.

25 Any reference in any law (other than title VII of the

26 Civil Rights Act of 1964) to any provision of title VII of
43

•S 2514 IS

1 the Civil Rights Act of 1964 amended by this Act shall

2 be deemed to be a reference to such provision as amended

3 by this Act.

4 SEC. 118. EFFECTIVE DATE; APPLICATION OF AMEND5 MENTS.

6 (a) EFFECTIVE DATE.—Except as provided in sub7 section (b), this Act and the amendments made by this

8 Act shall take effect on January 1, 1995.

9 (b) APPLICATION OF AMENDMENTS.—Except as pro10 vided in section 117, the amendments made by this Act

11 (other than sections 113 and 114) shall apply only with

12 respect to complaints filed under section 717 of the Civil

13 Rights Act of 1964 (42 U.S.C. 2000e–16) on or after the

14 effective date of this Act.

15 Subtitle C—Congressional

16 Employees Fairness Act

17 SEC. 121. SHORT TITLE.

18 This subtitle may be cited as the ‘‘Congressional Em19 ployees Fairness Act’’.

20 SEC. 122. APPLICATION OF FEDERAL LAWS.

21 (a) LAWS WHICH WILL APPLY.—Within 90 days

22 after the date final regulations take effect under section

23 124(a)(2), the following laws shall apply to the Congress:

24 (1) The Fair Labor Standards Act of 1938 (29

25 U.S.C. 201 et seq.).
44

•S 2514 IS

1 (2) Title VII of the Civil Rights Act of 1964

2 (42 U.S.C. 2000e et seq.).

3 (3) Sections 102 through 104 of the Americans

4 With Disabilities Act of 1990 (42 U.S.C. 12112-

5 12114).

6 (4) Section 15 of the Age Discrimination in

7 Employment Act of 1967 (29 U.S.C. 633a).

8 (5) The Family and Medical Leave Act of 1993

9 (29 U.S.C. 2611 et seq.).

10 (b) LAWS WHICH MAY BE MADE APPLICABLE.—Any

11 provision of Federal law shall, to the extent that it relates

12 to—

13 (1) the terms and conditions of employment (in14 cluding hiring, promotion or demotion, salary and

15 wages, overtime compensation, benefits, work assign16 ments or reassignments, and termination) of employ17 ees,

18 (2) protection from discrimination in personnel

19 actions,

20 (3) the health and safety of employees,

21 (4) the availability of information to the public,

22 or

23 (5) other areas deemed appropriate by the

24 Independent Office of Compliance,
45

•S 2514 IS

1 apply to the House of Representatives and the Senate

2 (hereinafter in this Act referred to jointly as the ‘‘Con3 gress’’) in accordance with approval of a recommendation

4 made under section 124(b).

5 SEC. 123. OFFICE OF COMPLIANCE.

6 (a) ESTABLISHMENT.—There is established in the

7 legislative branch for the Congress an Independent Office

8 of Compliance (hereinafter in this Act referred to as the

9 ‘‘Office’’).

10 (b) COMPOSITION.—

11 (1) IN GENERAL.—The Office shall be com12 posed of a Board of Directors and staff. The Board

13 of Directors shall consist of 15 individuals appointed

14 jointly by the Speaker of the House of Representa15 tives, the Majority Leader of the Senate, and the

16 Minority Leaders of the House of Representatives

17 and the Senate after consultation with individuals

18 who represent the interests of congressional employ19 ees. Appointments to the Board of Directors shall be

20 completed not later than 120 days after the date of

21 the enactment of this Act.

22 (2) QUALIFICATIONS.—

23 (A) MEMBERS WITH GENERAL AUTHOR24 ITY.—The members of the Board of Directors

25 who shall have the authority to carry out the
46

•S 2514 IS

1 functions of the Office under this Act shall be

2 9 individuals appointed under paragraph (1)

3 from nominations submitted by organizations

4 the membership of which are primarily com5 posed of individuals experienced in adjudicating

6 or arbitrating personnel matters. Individuals

7 nominated by such organizations shall be indi8 viduals with training or expertise in—

9 (i) the application of the laws referred

10 to in section 122 to employment, and

11 (ii) employment in the Congress.

12 (B) MEMBERS WITH LIMITED AUTHOR13 ITY.—The members of the Board of Directors

14 who shall have the authority to issue the regu15 lations, conduct the study, and take the con16 tinuing action referred to in subsections (a),

17 (b), and (c) of section 124 shall be 6 individuals

18 appointed under paragraph (1) of which 2 shall

19 be Members of the House of Representatives, 2

20 shall be Senators, 1 shall be an employee of the

21 House of Representatives, and 1 shall be an

22 employee of the Senate.

23 (C) SPECIFIC QUALIFICATIONS.—

24 (i) LOBBYING.—No individual who en25 gages in, or is otherwise employed in, lob-
47

•S 2514 IS

1 bying of the Congress shall be considered

2 eligible for appointment to, or service on,

3 the Board of Directors.

4 (ii) OFFICE.—No member appointed

5 under subparagraph (A) may hold the po6 sition of Member of the House of Rep7 resentatives, Senator, or employee of the

8 House of Representatives or the Senate.

9 (3) POLITICAL AFFILIATION.—Not more than

10 one Member of the House of Representatives who is

11 a member of the Board of Directors and not more

12 than one Senator who is a member of the Board of

13 Directors may be of the same political party.

14 (4) HOLDING OFFICE.—If during a term of of15 fice a member of the Board of Directors no longer

16 holds the position qualifying such member or en17 gages in an activity described in paragraph

18 (2)(C)(i), such position shall be declared vacant and

19 a successor shall be selected in accordance with

20 paragraph (2). If the term of office of a member of

21 the Board of Directors expires and such member is

22 a member of a hearing board hearing a complaint

23 under section 128, such member may continue in of24 fice until the decision or order of the hearing board

25 becomes final.
48

•S 2514 IS

1 (5) VACANCIES.—A vacancy in the Board of

2 Directors shall be filled in the manner in which the

3 original appointment was made.

4 (c) AUTHORITY.—

5 (1) IN GENERAL.—The 15 members of the

6 Board of Directors appointed under subsection

7 (b)(1) shall have the authority to carry out the func8 tions described in subsections (a) and (b) of section

9 124.

10 (2) OFFICE.—The 9 members of the Board of

11 Directors appointed under subsection (b)(2)(A) shall

12 have the authority to carry out the functions de13 scribed in sections 124 through 129A.

14 (d) TERM OF OFFICE.—

15 (1) IN GENERAL.—Except as provided in para16 graph (2), membership on the Board of Directors

17 shall be for 5 years.

18 (2) FIRST APPOINTMENTS.—Of the members

19 first appointed to the Board of Directors—

20 (A) 5 shall have a term of office of one

21 year,

22 (B) 5 shall have a term of office of 3

23 years, and

24 (C) 5 shall have a term of office of 5

25 years,
49

•S 2514 IS

1 as designated at the time of appointment by the per2 sons specified in subsection (b)(1).

3 (3) REAPPOINTMENT.—A member of the Board

4 of Directors may not be reappointed.

5 (e) REMOVAL.—A member of the Board of Directors

6 may only be removed for cause, including malfeasance in

7 office, inefficiency, or a violation of subsection (b)(2)(C)(i)

8 by a vote of a majority of the Board of Directors.

9 (f) CHAIRMAN.—The Chairman of the Board of Di10 rectors shall be appointed from the members of the Board

11 of Directors by the members of the Board.

12 (g) BASIC PAY.—Members of the Board of Directors

13 shall serve without pay except that members of the Board

14 of Directors who serve as hearing officers under section

15 128 shall receive for each day engaged in the performance

16 of the duties of such an officer compensation at a rate

17 not to exceed the daily equivalent of the annual rate of

18 basic pay in effect for grade GS-15 of the General Sched19 ule under subchapter III of chapter 53 of title 5, United

20 States Code.

21 (h) STAFF.—The Board of Directors may appoint

22 and fix the compensation of such staff as are necessary

23 to carry out the Board of Director’s functions. Appoint24 ments to the staff shall be made on the basis of experience

25 in labor law and not on political affiliation. Current or
50

•S 2514 IS

1 former employees of the Congress are not eligible for ap2 pointment to the staff.

3 (i) DETAILEES.—The Board of Directors may, with

4 the prior consent of the Government department or agency

5 concerned, use on a reimbursable or nonreimbursable

6 basis the services of any such department or agency, in7 cluding the services of members or personnel of the Gen8 eral Accounting Office Personnel Appeals Board.

9 (j) CONSULTANTS.—In carrying out the functions of

10 the Office, the Board of Directors may procure the tem11 porary (not to exceed 1 year) or intermittent services of

12 individual consultants, or organizations thereof.

13 SEC. 124. BOARD FUNCTIONS.

14 (a) REGULATIONS FOR THE APPLICATION OF LAWS

15 APPLICABLE TO CONGRESS.—The Board of Directors

16 shall issue regulations respecting the remedies available

17 under sections 125 through 129A of this Act to individuals

18 covered under the laws referred to in section 122(a). Reg19 ulations respecting such laws shall be issued within 120

20 days of the date of the first appointment of members of

21 the Board of Directors.

22 (b) RECOMMENDATIONS FOR APPLICATION OF

23 LAWS.—

24 (1) STUDY.—The Board of Directors shall con25 duct a study of the application to Congress of the
51

•S 2514 IS

1 laws referred to in section 122(b) and as amended

2 by section 129F. The Board of Directors shall com3 plete such study and report the results to Congress

4 not later than 180 days after the date of the first

5 appointment of the Board of Directors. Act.

6 (2) RECOMMENDATIONS.—

7 (A) IN GENERAL.—Not later than 120

8 days after the date of the completion of the

9 study under subsection (a), the Board of Direc10 tors shall, in accordance with section 553 of

11 title 5, United States Code, make recommenda12 tions to the Congress which specify which of the

13 laws referred to in section 122(b) should apply

14 to Congress. Such recommendations—

15 (i) shall take into account the costs

16 associated with the application of such

17 laws to the Congress,

18 (ii) shall be consistent with the provi19 sion of law made applicable to Congress,

20 except as otherwise specifically provided in

21 sections 125 through 129D of this Act,

22 and

23 (iii) may specify specific dates for the

24 application of specific laws and may specify
52

•S 2514 IS

1 specific means for the application of such

2 laws.

3 (B) APPROVAL.—When a recommendation

4 made under subparagraph (A) is received by

5 the Congress, it shall be introduced as a joint

6 resolution in the House of Representatives and

7 the Senate. Such a joint resolution shall be a

8 joint resolution which states after the resolving

9 clause that the Congress approves the rec10 ommendation and includes an appropriate iden11 tification of such recommendation. When such a

12 joint resolution is introduced in the House of

13 Representatives it shall be referred to the ap14 propriate committee and when it is introduced

15 in the Senate it shall be referred to the appro16 priate committee. Subsections (c), (d), (e), and

17 (f) of section 152 of the Trade Act of 1974 (19

18 U.S.C. 2912) shall be applicable to such a joint

19 resolution, except that final action on such rec20 ommendation shall be completed within 45 days

21 of the date of the submission to Congress of the

22 joint resolution.

23 (3) REGULATIONS FOR ACTIONS ON REC24 OMMENDATIONS.—The Board of Directors shall

25 issue regulations respecting the remedies available
53

•S 2514 IS

1 under sections 125 through 129A of this Act to indi2 viduals covered under the laws made applicable to

3 the Congress by approval of a recommendation made

4 under paragraph (2). Regulations respecting such

5 laws shall be issued within 60 days of the date of

6 the enactment of a law in response to a rec7 ommendation made under paragraph (2).

8 (c) CONTINUING ACTION.—On an ongoing basis the

9 Board of Directors shall study the application to the Con10 gress of laws referred to in section 122(b) which are en11 acted after the date of the enactment of this Act and may

12 issue recommendations and regulations with respect to

13 such laws in accordance with subsection (b).

14 (d) RULES OF THE OFFICE.—The Board of Directors

15 shall adopt rules governing the procedures of the Office,

16 including the procedures under sections 125 through 128,

17 which shall be submitted for publication in the Congres18 sional Record. The rules may be amended in the same

19 manner. The Board of Directors may consult with the

20 Chairman of the Administrative Conference of the United

21 States on the adoption of such rules.

22 (e) DUTIES.—The Office shall—

23 (1) carry out a program of education for Mem24 bers of Congress and other employing authorities of

25 the Congress respecting the laws made applicable to
54

•S 2514 IS

1 them and a program to inform individuals of their

2 rights under laws applicable to Congress and under

3 sections 125 through 129A,

4 (2) in carrying out the program under para5 graph (1), distribute the telephone number and ad6 dress of the Office, procedures for action under sec7 tions 125 through 129A, and any other information

8 the Board of Directors deems appropriate for dis9 tribution, distribute such information to Members of

10 Congress and other employing authorities in a man11 ner suitable for posting, provide such information to

12 new Congressional employees, distribute such infor13 mation to the residences of Congressional employees,

14 and conduct seminars and other activities designed

15 to educate employers and employees in such infor16 mation,

17 (3) compile and publish statistics on the use of

18 the Office by Congressional employees, including the

19 number and type of contacts made with the Office,

20 on the reason for such contacts, on the number of

21 employees who initiated proceedings with the Office

22 under sections 5 through 10 and the result of such

23 proceedings, on the number of employees who filed

24 a complaint under section 8, the basis for the com25 plaint, and the action taken on the complaint, and
55

•S 2514 IS

1 (4) within 180 days of the initial appointment

2 of the members of the Board of Directors and in

3 conjunction with the Clerk of the House of Rep4 resentatives and the Secretary of the Senate, develop

5 a system for the collection of demographic data re6 specting the composition of the employees of the

7 Congress, including race, sex, and wages, and a sys8 tem for the collection of information on employment

9 practices, including family leave and flexible work

10 hours, in Congressional offices.

11 (f) REPORT.—Within one year of the date the system

12 referred to in subsection (e)(5) is developed and annually

13 thereafter, the Board of Directors shall submit to Con14 gress a report on the information collected under such sys15 tem. Each report after the first report shall contain a com16 parison and evaluation of data contained in the previous

17 report.

18 (g) IDENTIFICATION OF DISCRIMINATORY PRAC19 TICES.—From the information collected under subsection

20 (e)(5) the Board of Directors shall identify discriminatory

21 wage setting practices in the Congress and promptly re22 port to the Congress such identification together with rec23 ommendations for corrective action.
56

•S 2514 IS

1 SEC. 125. PROCEDURE FOR CONSIDERATION OF ALLEGED

2 VIOLATIONS.

3 The procedure for consideration of alleged violations

4 of laws made applicable to Congress under the regulation

5 promulgated under section 4(a) consists of 4 steps as fol6 lows:

7 (1) Step I, counseling, as set forth in section 6.

8 (2) Step II, mediation, as set forth in section

9 7.

10 (3) Step III, formal complaint and hearing by

11 a hearing board, as set forth in section 8.

12 (4) Step IV, judicial review of a hearing board

13 decision, as set forth in section 9.

14 SEC. 126. STEP I: COUNSELING.

15 (a) IN GENERAL.—A Congressional employee alleg16 ing a violation of a law made applicable to Congress under

17 section 2(a) or 4(b) may request counseling by the Office.

18 The Office shall provide the employee with all relevant in19 formation with respect to the rights of the employee, in20 cluding the procedures (including deadlines) for claims

21 under section 8. A request for counseling shall be made

22 not later than 180 days after the alleged violation forming

23 the basis of the request for counseling occurred.

24 (b) PERIOD OF COUNSELING.—The period for coun25 seling shall be 30 days unless the employee and the Office
57

•S 2514 IS

1 agree to reduce the period. The period shall begin on the

2 date the request for counseling is received.

3 (c) EMPLOYEES OF THE ARCHITECT OF THE CAP4 ITOL AND CAPITOL POLICE.—In the case of an employee

5 of the Architect of the Capitol or an employee who is a

6 member of the Capitol Police, the Director may refer the

7 employee to the Architect of the Capitol or the Capitol

8 Police Board for resolution of the employee’s complaint

9 through the internal grievance procedures of the Architect

10 of the Capitol or the Capitol Police Board for a specific

11 period of time, which shall not count against the time

12 available for counseling or mediation under this Act.

13 SEC. 127. STEP II: MEDIATION.

14 (a) IN GENERAL.—Not later than 15 days after the

15 end of the counseling period under section 6, the employee

16 who alleged a violation of a law made applicable to Con17 gress under section 4 may file a request for mediation with

18 the Office. Mediation—

19 (1) may include the Office, the employee, the

20 employing office, and individuals who are rec21 ommended to the Director by the Federal Mediation

22 and Conciliation Service, and

23 (2) shall be a process involving meetings with

24 the parties separately or jointly for the purpose of
58

•S 2514 IS

1 resolving the dispute between the employee and the

2 employing office.

3 (b) MEDIATION PERIOD.—The mediation period shall

4 be 30 days beginning on the date the request for mediation

5 is received and may be extended for an additional 30 days

6 at the discretion of the Office. The Office shall notify the

7 employee and the head of the employing office when the

8 mediation period has ended. For purposes of this section,

9 the term ‘‘head of employing office’’ means the individual

10 who has final authority to appoint, hire, discharge, and

11 set the terms, conditions or privileges of the Congressional

12 employment of an employee.

13 SEC. 128. STEP III: FORMAL COMPLAINT AND HEARING.

14 (a) FORMAL COMPLAINT AND REQUEST FOR HEAR15 ING.—Not later than 30 days after receipt by the Congres16 sional employee of notice from the Office of the end of

17 the mediation period under section 7, the Congressional

18 employee may file a formal complaint with the Office. No

19 complaint may be filed unless the employee has made a

20 timely request for counseling and has completed the proce21 dures set forth in sections 6 and 7.

22 (b) HEARING OFFICERS.—A board of 3 hearing offi23 cers (hereinafter in this Act referred to as a ‘‘hearing

24 board’’), who are chosen by lot from the Board of Direc25 tors (one of whom shall be designated by the Board of
59

•S 2514 IS

1 Directors as the presiding hearing officer) shall be as2 signed to consider each complaint filed under subsection

3 (a). A hearing board shall act by majority vote.

4 (c) DISMISSAL OF FRIVOLOUS CLAIMS.—Prior to a

5 hearing under subsection (d), a hearing board may dismiss

6 any claim that it finds to be frivolous.

7 (d) HEARING.—A hearing shall be conducted—

8 (1) in closed session on the record by a hearing

9 board,

10 (2) no later than 30 days after filing of the

11 complaint under subsection (a), except that the Of12 fice may, for good cause, extend up to an additional

13 60 days the time for conducting a hearing, and

14 (3) except as specifically provided in this Act

15 and to the greatest extent practicable, in accordance

16 with the principles and procedures set forth in sec17 tions 554 through 557 of title 5, United States

18 Code.

19 (e) DISCOVERY.—Reasonable prehearing discovery

20 shall be permitted at the discretion of the hearing board.

21 (f) SUBPOENA POWER.—

22 (1) IN GENERAL.—A hearing board may au23 thorize subpoenas, which shall be issued by the pre24 siding hearing officer on behalf of the hearing board,

25 for the attendance of witnesses at proceedings of the
60

•S 2514 IS

1 hearing board and for the production of correspond2 ence, books, papers, documents, and other records.

3 The attendance of witnesses and the production of

4 evidence may be required from any place within the

5 United States.

6 (2) FAILURE TO OBEY A SUBPOENA.—If a per7 son refuses to obey a subpoena issued under para8 graph (1), the hearing board may apply to a United

9 States district court for an order requiring that per10 son to appear before the hearing board to give testi11 mony, produce evidence, or both, relating to the

12 matter under investigation. The application may be

13 made within the judicial district where the hearing

14 is conducted or where that person is found, resides,

15 or transacts business. Any failure to obey the order

16 of the court may be punished by the court as civil

17 contempt.

18 (3) SERVICE OF SUBPOENAS.—The subpoenas

19 of the hearing board shall be served in the manner

20 provided for subpoenas issued by a United States

21 district court under the Federal Rules of Civil Pro22 cedure for the United States district courts.

23 (4) SERVICE OF PROCESS.—All process of any

24 court to which application is be made under para25 graph (2) may be served in the judicial district in
61

•S 2514 IS

1 which the person required to be served resides or

2 may be found.

3 (5) IMMUNITY.—The hearing board is an

4 agency of the United States for the purpose of

5 part V of title 18, United States Code (relating

6 to immunity of witnesses).

7 (g) DECISION.—As expeditiously as possible, but in

8 no case more than 45 days after the conclusion of the

9 hearing, the hearing board shall issue a decision in the

10 matter for which the hearing was held. The decision of

11 the hearing board shall be transmitted by the Office to

12 the employee and the employing office. The decision shall

13 state the issues raised by the complaint, describe the evi14 dence in the record, and contain a determination as to

15 whether a violation of a law made applicable to Congress

16 under section 4 has occurred. Any decision of the hearing

17 board shall contain a written statement of the reasons for

18 the Board’s decision.

19 (h) REMEDY ORDER.—If the hearing board deter20 mines that a violation of a law made applicable to Con21 gress under section 2(a) or 4(b) has occurred, it shall

22 order such remedies as would be appropriate under the

23 law which has been violated, including attorneys’ fees. The

24 hearing board shall have no authority to award punitive

25 damages. The entry of an order under this subsection shall
62

•S 2514 IS

1 constitute a final decision for purposes of review under

2 section 9.

3 SEC. 129. JUDICIAL REVIEW.

4 (a) IN GENERAL.—Any Congressional employee ag5 grieved by a dismissal under section 8(c), a final decision

6 under section 8(g), or an order under section 8(h), or any

7 Member of the House of Representatives or Senate ag8 grieved by a final decision under section 8(g) or who would

9 be subject to an order issued under section 8(h), may peti10 tion for review by the United States Court of Appeals for

11 the Federal Circuit.

12 (b) LAW APPLICABLE.—Chapter 158 of title 28,

13 United States Code, shall apply to a review under sub14 section (a) except that—

15 (1) with respect to section 2344 of title 28,

16 United States Code, service of the petition shall be

17 on the House or Senate Legal Counsel, as the case

18 may be, rather than on the Attorney General,

19 (2) the provisions of section 2348 of title 28,

20 United States Code, on the authority of the Attorney

21 General, shall not apply,

22 (3) the petition for review shall be filed not

23 later than 90 days after the entry in the Office of

24 a final decision under section 8(g) or order under

25 section 8(h),
63

•S 2514 IS

1 (4) the Office shall be an ‘‘agency’’ as that

2 term is used in chapter 158 of title 28, United

3 States Code, and

4 (5) the Office shall be the respondent in any

5 proceeding under subsection (a).

6 (c) STANDARD OF REVIEW.—To the extent necessary

7 to decision and when presented, the court shall decide all

8 relevant questions of law and interpret constitutional and

9 statutory provisions. The court shall set aside a final deci10 sion under section 8(h) or order under section 8(g) if it

11 is determined that the decision or order was—

12 (1) arbitrary, capricious, an abuse of discretion,

13 or otherwise not consistent with law;

14 (2) not made consistent with required proce15 dures; or

16 (3) unsupported by substantial evidence.

17 In making the foregoing determinations, the court shall

18 review the whole record, or those parts of it cited by a

19 party, and due account shall be taken of the rule of preju20 dicial error. The record on review shall include the record

21 before the hearing board, the decision of the hearing

22 board, and the order of the hearing board.

23 (d) FEES.—In an action brought under subsection

24 (a), the court may allow the prevailing party a reasonable
64

•S 2514 IS

1 attorney’s fees (including expert witness fees) as part of

2 the costs.

3 SEC. 129A. OTHER REVIEW.

4 (a) PERSONNEL APPEALS BOARD.—If the judicial re5 view of a dismissal notice, decision, or order under section

6 8(c), 8(g), or 8(h) under section 9 is held to be unconstitu7 tional, the review of such notice, decision, or order shall

8 be conducted by the Personnel Appeals Board of the Gen9 eral Accounting Office (hereinafter in this section referred

10 to as the ‘‘Board’’).

11 (b) PETITION FOR REVIEW.—Any Congressional em12 ployee aggrieved by a dismissal under section 8(c), a final

13 decision under section 8(g), or an order under section

14 8(h), or any Member of the House of Representatives or

15 Senate aggrieved by a final decision under section 8(g)

16 or who would be subject to an order issued under section

17 8(h), may petition for review by the Board.

18 (c) STANDARD OF REVIEW.—To the extent necessary

19 to decision and when presented, the Board shall decide

20 all relevant questions of law and interpret constitutional

21 and statutory provisions. The Board shall set aside a final

22 decision under section 8(h) or order under section 8(g)

23 if it is determined that the decision or order was—

24 (1) arbitrary, capricious, an abuse of discretion,

25 or otherwise not in accordance with law,
65

•S 2514 IS

1 (2) made without observance of procedure re2 quired by law, or

3 (3) unsupported by substantial evidence.

4 In making the foregoing determinations, the Board shall

5 review the whole record, or those parts of it cited by a

6 party, and due account shall be taken of the rule of preju7 dicial error. The record on review shall include the record

8 before the hearing board, the decision of the hearing

9 board, and the order of the hearing board.

10 (d) ATTORNEY’S FEES.—If an employee is the pre11 vailing party in a proceeding under this section, attorney’s

12 fees may be allowed by the Board in accordance with the

13 standards prescribed under section 706(k) of the Civil

14 Rights Act of 1964 (42 U.S.C. 2000e–5(k)).

15 SEC. 129B. RESOLUTION OF COMPLAINT.

16 If, after a formal complaint is filed under section 8,

17 the employee and the head of the employing office resolve

18 the issues involved, the employee may withdraw the com19 plaint or the parties may enter into a written agreement,

20 subject to the approval of the Board of Directors.

21 SEC. 129C. COLLECTION AND PRESERVATION OF DOCU22 MENTS.

23 Beginning on the date a respondent receives a com24 plaint under section 8 and ending on the date final action

25 has been taken on the complaint, the respondent shall col-
66

•S 2514 IS

1 lect and preserve all documents and other information rel2 evant to such complaint.

3 SEC. 129D. PROHIBITION OF INTIMIDATION.

4 Any intimidation of, or reprisal against, any employee

5 by any Member, officer, or employee of the House of Rep6 resentatives or the Senate, or by the Architect of the Cap7 itol, or anyone employed by the Architect of the Capitol,

8 as the case may be, because of the exercise of a right

9 under this Act or because of appearance as a witness in

10 a case under this Act constitutes an unlawful employment

11 practice, which may be remedied in the same manner

12 under this Act as is a violation of a law made applicable

13 to Congress under section 2(a) or 4(b).

14 SEC. 129E. CONFIDENTIALITY.

15 (a) COUNSELING.—All counseling shall be strictly

16 confidential except that the Office and the employee may

17 agree to notify the head of the employing office of the alle18 gations.

19 (b) MEDIATION.—All mediation shall be strictly con20 fidential.

21 (c) HEARINGS.—Except as provided in subsection

22 (d), the hearings, deliberations, and decisions of the hear23 ing board shall be confidential.

24 (d) RELEASE OF RECORDS FOR REVIEW.—The

25 records and decisions of hearing boards may be made pub-
67

•S 2514 IS

1 lic if required for the purpose of review under section 9

2 or 10.

3 SEC. 129F. TECHNICAL AND CONFORMING AMENDMENTS.

4 (a) LAWS REFERRED TO IN SECTION 2(a).—

5 (1) FAIR LABOR STANDARDS ACT OF 1938.—

6 (A) DEFINITION.—Section 3(e)(2)(A)(iii)

7 of the Fair Labor Standards Act of 1938 (29

8 U.S.C. 203(e)(2)(A)(iii)) is amended to read as

9 follows:

10 ‘‘(iii) in the Congress or in any unit

11 of the judicial branch of the Government

12 which has positions in the competitive serv13 ice,’’.

14 (B) COVERAGE.—Section 8 of the Fair

15 Labor Standards Amendments of 1989 is re16 pealed.

17 (2) TITLE VII OF THE CIVIL RIGHTS ACT OF

18 1964.—

19 (A) CIVIL RIGHTS ACT OF 1991.—Section

20 117 and title III of the Civil Rights Act of

21 1991 (2 U.S.C. 60l, 120l et seq.) are repealed.

22 (B) EQUAL EMPLOYMENT OPPOR23 TUNITY.—Section 717(a) of the Civil Rights

24 Act of 1964 (42 U.S.C. 2000e–16(a)) is amend25 ed by striking out ‘‘in those units of the legisla-
68

•S 2514 IS

1 tive and judicial branches of the Federal Gov2 ernment having positions in the competitive

3 service’’ and inserting in lieu thereof ‘‘in all

4 units of the Congress and in those units of the

5 judicial branch of the Federal Government hav6 ing positions in the competitive service’’.

7 (3) AMERICANS WITH DISABILITIES ACT OF

8 1990.—Section 509 of the Americans with Disabil9 ities Act of 1990 (42 U.S.C. 12209) is repealed and

10 section 101 of such Act (42 U.S.C. 12111) is

11 amended—

12 (A) in paragraph (5)(B), by striking out

13 ‘‘the United States’’ the first time it appears

14 and inserting in lieu thereof ‘‘the United States

15 (except as provided in paragraph (11))’’, and

16 (B) by adding at the end the following:

17 ‘‘(11) The Congress shall be deemed an employer en18 gaged in an industry affecting commerce.’’.

19 (4) AGE DISCRIMINATION IN EMPLOYMENT

20 ACT OF 1967.—Section 11(b) of the Age Discrimina21 tion in Employment Act of 1967 (29 U.S.C. 630(b))

22 is amended (A) by striking out ‘‘and’’ before ‘‘(2)’’,

23 (B) by inserting before ‘‘but’’ the following: ‘‘and (3)

24 the Congress’’, and (C) by striking out ‘‘the United
69

•S 2514 IS

1 States, or’’ and inserting in lieu thereof ‘‘the execu2 tive and judicial branch of the United States, or’’.

3 (5) FAMILY AND MEDICAL LEAVE ACT OF

4 1993.—Title V of the Family and Medical Leave

5 Act of 1993 (2 U.S.C. 60m, 60n) is repealed.

6 (b) LAWS REFERRED TO IN SECTION 2(b).—

7 (1) OCCUPATIONAL SAFETY AND HEALTH.—

8 (A) DEFINITION OF EMPLOYER.—Section

9 3(5) of the Occupational Safety and Health Act

10 of 1970 (29 U.S.C. 652(5)) is amended by

11 striking out ‘‘, but does not include the United

12 States or’’ and inserting in lieu thereof ‘‘and in13 cludes the Congress (to the extent authorized

14 by a regulation of the Office of Compliance es15 tablished under section 4(c) of the Congres16 sional Accountability Act) but does not include

17 executive or judicial branch of the Federal Gov18 ernment or’’.

19 (B) DEFINITION OF EMPLOYEE.—Section

20 3(6) of such Act (29 U.S.C. 652(6)) is amend21 ed by inserting before the period a comma and

22 the following: ‘‘and, to the extent authorized by

23 a regulation of the Office of Compliance estab24 lished under section 4(c) of the Congressional

25 Accountability Act, the employees of the Con-
70

•S 2514 IS

1 gress shall be deemed to be employed in a busi2 ness affecting commerce for the purpose of this

3 Act’’.

4 (2) FREEDOM OF INFORMATION.—Section

5 552(f) of title 5, United States Code, is amended by

6 striking out ‘‘or’’ before ‘‘any independent’’ and by

7 inserting before the period a comma and the follow8 ing: ‘‘or the Congress (to the extent authorized by

9 a regulation of the Office of Compliance established

10 under section 4(c) of the Congressional Accountabil11 ity Act)’’.

12 (3) PRIVACY.—Section 552a(a)(1) of title 5,

13 United States Code, is amended by striking out

14 ‘‘552(e)’’ and inserting in lieu thereof ‘‘552(f)’’.

15 (4) AGE DISCRIMINATION.—Section 309(3) of

16 the Age Discrimination Act of 1975 (42 U.S.C.

17 6107) is amended by inserting after ‘‘means’’ the

18 following: ‘‘the Congress (to the extent authorized by

19 a regulation of the Office of Compliance established

20 under section 4(c) of the Congressional Accountabil21 ity Act) and’’.

22 (c) RULE OF THE HOUSE OF REPRESENTATIVES.—

23 Rule LI of the House of Representatives is repealed.
71

•S 2514 IS

1 SEC. 129G. POLITICAL AFFILIATION AND PLACE OF RESI2 DENCE.

3 (a) IN GENERAL.—It shall not be a violation of a law

4 made applicable to Congress under section 4 to consider

5 the—

6 (1) party affiliation;

7 (2) domicile, or

8 (3) political compatibility with the employing

9 office,

10 of an employee with respect to employment decisions.

11 (b) DEFINITION.—For purposes of subsection (a),

12 the term ‘‘employee’’ means—

13 (1) an employee on the staff of the House of

14 Representatives or Senate leadership;

15 (2) an employee on the staff of a committee or

16 subcommittee;

17 (3) an employee on the staff of a Member of

18 the House of Representatives or Senate;

19 (4) an officer or employee of the House of Rep20 resentatives or Senate elected by the House of Rep21 resentatives or Senate or appointed by a Member

22 House of Representatives or Senate, other than

23 those described in paragraphs (1) through (3); or

24 (5) an applicant for a position that is to be oc25 cupied by an individual described in paragraphs (1)

26 through (4).
72

•S 2514 IS

1 SEC. 129H. REVIEW LIMIT.

2 No Congressional employee may commence a judicial

3 proceeding to redress practices prohibited under a law

4 made applicable to Congress under section 2(a) or 4(b)

5 except as provided in this Act.

6 Subtitle D—Sexual Harassment

7 SEC 131. SHORT TITLE.

8 This subtitle may be cited as the ‘‘Sexual Harass9 ment Prevention Act’’.

10 SEC. 132. FINDINGS AND PURPOSES.

11 (a) FINDINGS.—The Congress finds the following:

12 (1) Sexual harassment in employment persists

13 widely in the workplace, although it violates title VII

14 of the Civil Rights Act of 1964 and adversely affects

15 employees.

16 (2) According to guidelines issued by the Equal

17 Employment Opportunity Commission in 1980, the

18 most effective tool for eliminating sexual harassment

19 is prevention.

20 (3) The United States Merit Systems Protec21 tion Board found in 1981 and 1988 surveys of Fed22 eral Government employees that 42 percent of fe23 male employees and 14 percent of male employees

24 questioned had experienced some kind of harassment

25 in employment. The American Psychological Association estimates that at least 1 26 ⁄2 of all working women
73

•S 2514 IS

1 have been sexually harassed at the workplace during

2 their careers.

3 (4) The vast majority of sexual harassment epi4 sodes go unreported to a supervisory employee or

5 other individual designated by the employer. Only 5

6 percent of the Government employees who indicated

7 in the 1988 Merit Systems Protection Board survey

8 that they had been harassed filed a formal complaint

9 or requested an investigation of the harassment.

10 (5) Sexual harassment has a significant cost for

11 employees and employers. A 1988 study by Working

12 Woman Magazine shows that sexual harassment

13 costs a typical ‘‘Fortune 500’’ employer $6,000,000,

14 or $292.53 per employee, each year. The same study

15 estimates that it is 34 times more expensive for such

16 an employer to ignore the problem than it is to es17 tablish effective programs and policies to address the

18 problem.

19 (6) Most job growth over the next decade is ex20 pected to occur in employment by small employers.

21 Sixty-six percent of the individuals who will enter

22 the work force during this period are expected to be

23 female. The establishment of programs and policies

24 in small-business environments, at a low cost to em-
74

•S 2514 IS

1 ployers, will be a key prevention priority to reduce

2 sexual harassment in employment.

3 (b) PURPOSES.—The purposes of this subtitle are—

4 (1) to establish workplace requirements that

5 will reduce the incidence of sexual harassment in

6 employment,

7 (2) to provide a low-cost system to assist em8 ployers to establish programs and policies to prevent

9 sexual harassment in employment,

10 (3) to raise the awareness of employees of the

11 definition of sexual harassment and of available ave12 nues of redress, and

13 (4) to increase the authority and capacity of the

14 Equal Employment Opportunity Commission to as15 sist in preventing sexual harassment in employment.

16 SEC. 133. EMPLOYER REQUIREMENTS.

17 (a) POSTING OF NOTICE IN THE WORKPLACE.—

18 Each employer shall post and keep posted in conspicuous

19 places upon its premises where notices to employees and

20 applicants for employment are customarily posted, a no21 tice that shall be prepared or approved by the Commission

22 and shall set forth—

23 (1) the definition of sexual harassment found in

24 section 1604.11(a) of title 29 of the Code of Federal

25 Regulations (July 1, 1992),
75

•S 2514 IS

1 (2) the fact that sexual harassment in employ2 ment is a violation of title VII of the Civil Rights

3 Act of 1964,

4 (3) information describing how to file with the

5 Commission a complaint alleging such harassment,

6 including information on the time periods within

7 which an alleged victim of discrimination (including

8 sexual harassment) must file a charge with the

9 Equal Employment Opportunity Commission, or a

10 State or local fair employment agency, in order to

11 satisfy the statute of limitations applicable to claims

12 under title VII.

13 (4) an address, and the toll-free telephone num14 ber, to be used to contact the Commission regarding

15 such harassment or compliance with the require16 ments of this subtitle, and

17 (5) such other information as the Commission

18 may require.

19 (b) SEPARATE NOTICE TO INDIVIDUAL EMPLOY20 EES.—Each employer shall provide annually to each em21 ployee separately a written notice that includes—

22 (1) the matters specified in paragraphs (1)

23 through (4) of subsection (a),
76

•S 2514 IS

1 (2) a description of the procedures established

2 by such employer to resolve allegations of sexual

3 harassment in employment, and

4 (3) such other information as the Commission

5 may require.

6 Such notice shall be provided in a manner that ensures

7 that such employee actually receives such notice.

8 (c) MANAGEMENT INFORMATION FOR SUPERVISORY

9 EMPLOYEES.—Not later than 60 days after an employer

10 places an individual in a supervisory employment position

11 or 1 year after the date of the enactment of this Act,

12 whichever occurs later, such employer shall provide to the

13 supervisory employee information specifying the respon14 sibilities of, and the methods to be used by, such employee

15 to ensure that immediate and corrective action is taken

16 to address allegations of sexual harassment in employ17 ment.

18 (d) CIVIL PENALTY.—A willful violation of this sec19 tion shall be punishable by a civil penalty of not more than

20 $1,000 for each separate violation.

21 SEC. 134. DUTIES OF THE COMMISSION.

22 (a) TECHNICAL ASSISTANCE MATERIALS.—Not later

23 than 180 days after the date of the enactment of this Act,

24 the Commission shall prepare, revise from time to time
77

•S 2514 IS

1 as needed, and make available to employers at no cost (by

2 publication in the Federal Register or other means)—

3 (1) a model notice of the kind required by sec4 tion 133(a) to be posted,

5 (2) a model notice of the kind required by sec6 tion 133(b) to be provided to employees, and

7 (3) voluntary guidelines for the establishment of

8 policies and procedures by employers to address alle9 gations of discrimination (including sexual harass10 ment) in employment.

11 (b) TOLL-FREE TELEPHONE NUMBER.—Not later

12 than 180 days after the date of the enactment of this Act,

13 the Commission shall provide a toll-free telephone number

14 for use by employees and employers in the United States

15 to obtain—

16 (1) information regarding compliance with this

17 subtitle, and

18 (2) the model notices and guidelines prepared

19 under subsection (a).

20 SEC. 135. ENFORCEMENT.

21 Section 133 shall be enforced—

22 (1) by the Commission with respect to viola23 tions alleged by employees as defined in subpara24 graphs (A), (B), and (E) of section 136(2),
78

•S 2514 IS

1 (2) by the House of Representatives in the

2 manner described in section 117(a)(2)(B) of the

3 Civil Rights Act of 1992 (2 U.S.C. 60l) with respect

4 to violations alleged by employees as defined in sec5 tion 136(2)(C) of this subtitle, and

6 (3) by the Senate in the manner described in

7 the Government Employee Rights Act of 1992 (2

8 U.S. 120 et seq.) with respect to violations alleged

9 by employees as defined in section 136(2)(D) of this

10 subtitle.

11 SEC. 136. DEFINITIONS.

12 For purposes of this subtitle—

13 (1) the term ‘‘Commission’’ means the Equal

14 Employment Opportunity Commission,

15 (2) the term ‘‘employee’’ means—

16 (A) an employee as defined in section

17 701(f) of the Civil Rights Act of 1964 (42

18 U.S.C. 2000e(f)),

19 (B) an employee referred to in section

20 717(a) of such Act (42 U.S.C. 2000e-16(a)),

21 (C) an employee in an employment position

22 of the House of Representatives,

23 (D) a Senate employee as defined in sec24 tion 301(c)(1) of the Government Employee

25 Rights Act of 1991 (2 U.S.C. 1201(c)(1)), or
79

•S 2514 IS

1 (E) an employee (other than a Senate em2 ployee) in an employment position of an instru3 mentality of the Congress,

4 (3) the term ‘‘employer’’ means—

5 (A) an employer as defined in section

6 701(b) of the Civil Rights Act of 1964 (42

7 U.S.C. 2000e(b)),

8 (B) a Federal entity to which section

9 717(a) of the Civil Rights Act of 1964 (42

10 U.S.C. 2000e-716(a)) applies, or

11 (C) an employing authority of the House

12 of Representatives, of the Senate, or of an in13 strumentality of the Congress,

14 (4) the term ‘‘instrumentality of the Congress’’

15 means the Architect of the Capitol, the Congres16 sional Budget Office, the Office of Technology As17 sessment, the United States Botanic Garden, and

18 those units of the Government Printing Office with

19 positions in the excepted service, and

20 (5) the term ‘‘sexual harassment’’ has the same

21 meaning as such term has for purposes of title VII

22 of the Civil Rights Act of 1964 (42 U.S.C. 2000e23 2000e–17).
80

•S 2514 IS

1 SEC. 137. EFFECTIVE DATES.

2 (a) GENERAL EFFECTIVE DATE.—Except as pro3 vided in subsection (b), this subtitle shall take effect on

4 the date of the enactment of this Act.

5 (b) EFFECTIVE DATE OF SECTION 3.—Section 133

6 shall take effect 1 year after the date of the enactment

7 of this Act.

8 Subtitle E—Part-Time and

9 Temporary Workers Protection Act

10 SEC. 141. SHORT TITLE.

11 This subtitle may be cited as the ‘‘Part-Time and

12 Temporary Workers Protection Act’’.

13 SEC. 142. ELIGIBILITY FOR UNEMPLOYMENT COMPENSA14 TION OF CERTAIN INDIVIDUALS SEEKING

15 PART-TIME EMPLOYMENT.

16 (a) GENERAL RULE.—Subsection (a) of section 3304

17 of the Internal Revenue Code of 1986 (relating to require18 ments for approval of State unemployment compensation

19 laws) is amended by striking ‘‘and’’ at the end of para20 graph (17), by redesignating paragraph (18) as paragraph

21 (19), and by inserting after paragraph (17) the following

22 new paragraph:

23 ‘‘(18) in applying the State law provisions relat24 ing to availability for work, active search for work,

25 or refusal to accept work, the term ‘suitable work’

26 shall not include any work where the individual
81

•S 2514 IS

1 would normally perform services for more hours per

2 week than the number of hours per week for which

3 the individual normally performed services in the in4 dividual’s last job in the base period, and’’.

5 (b) EFFECTIVE DATE.—The amendment made by

6 subsection (a) shall take effect on the date of the enact7 ment of this Act.

8 SEC. 143. ANNUAL BUREAU OF LABOR STATISTICS SURVEY

9 RELATING TO TEMPORARY WORKERS.

10 The Secretary of Labor, acting through the Commis11 sioner of the Bureau of Labor Statistics, shall establish

12 and carry out an annual survey identifying—

13 (1) the characteristics of temporary workers in

14 the United States;

15 (2) the relationship between such workers and

16 the establishments at which such workers are tempo17 rarily employed; and

18 (3) where appropriate, the relationship between

19 such workers and their permanent employers.

20 SEC. 144. PROTECTION OF PART-TIME AND TEMPORARY

21 WORKERS.

22 (a) TREATMENT OF EMPLOYEES WORKING AT LESS

23 THAN FULL-TIME UNDER PARTICIPATION, VESTING, AND

24 ACCRUAL RULES GOVERNING PENSION PLANS.—

25 (1) PARTICIPATION RULES.—
82

•S 2514 IS

1 (A) IN GENERAL.—Section 202(a)(3) of

2 the Employee Retirement Income Security Act

3 of 1974 (29 U.S.C. 1052(a)(3)) is amended by

4 adding at the end the following new subpara5 graph:

6 ‘‘(E)(i) For purposes of this paragraph, in the case

7 of any employee who, as of the beginning of the 12-month

8 period referred to in subparagraph (A)—

9 ‘‘(I) has customarily completed 500 or more

10 hours of service per year but less than 1,000 hours

11 of service per year, or

12 ‘‘(II) is employed in a type of position in which

13 employment customarily constitutes 500 or more

14 hours of service per year but less than 1,000 hours

15 of service per year,

16 completion of 500 hours of service within such 12-month

17 period shall be treated as completion of 1,000 hours of

18 service.

19 ‘‘(ii) For purposes of this subparagraph, the extent

20 to which employment in any type of position customarily

21 constitutes less than 1,000 hours of service per year shall

22 be determined with respect to each pension plan in accord23 ance with such regulations as the Secretary may prescribe

24 providing for consideration of facts and circumstances pe-
83

•S 2514 IS

1 culiar to the work-force constituting the participants in

2 such plan.’’.

3 (B) CONFORMING AMENDMENT.—Section

4 204(b)(1)(E) of such Act (29 U.S.C.

5 1054(b)(1)(E)) is amended by striking ‘‘section

6 202(a)(3)(A)’’ and inserting ‘‘subparagraphs

7 (A) and (E) of section 202(a)(3)’’.

8 (2) VESTING RULES.—

9 (A) IN GENERAL.—Section 203(b)(2) of

10 such Act (29 U.S.C. 1053(b)(2)) is amended by

11 adding at the end the following new subpara12 graph:

13 ‘‘(E)(i) For purposes of this paragraph, in the case

14 of any employee who, as of the beginning of the period

15 designated by the plan pursuant to subparagraph (A)—

16 ‘‘(I) has customarily completed 500 or more

17 hours of service per year but less than 1,000 hours

18 of service per year, or

19 ‘‘(II) is employed in a type of position in which

20 employment customarily constitutes 500 or more

21 hours of service per year but less than 1,000 hours

22 of service per year,

23 completion of 500 hours of service within such period shall

24 be treated as completion of 1,000 hours of service.
84

•S 2514 IS

1 ‘‘(ii) For purposes of this subparagraph, the extent

2 to which employment in any type of position customarily

3 constitutes less than 1,000 hours of service per year shall

4 be determined with respect to each pension plan in accord5 ance with such regulations as the Secretary may prescribe

6 providing for consideration of facts and circumstances pe7 culiar to the work-force constituting the participants in

8 such plan.’’.

9 (B) 1-YEAR BREAKS IN SERVICE.—Section

10 203(b)(3) of such Act (29 U.S.C. 1053(b)(3))

11 is amended by adding at the end the following

12 new subparagraph:

13 ‘‘(F)(i) For purposes of this paragraph, in the case

14 of any employee who, as of the beginning of the period

15 designated by the plan pursuant to subparagraph (A)—

16 ‘‘(I) has customarily completed 500 or more

17 hours of service per year but less than 1,000 hours

18 of service per year, or

19 ‘‘(II) is employed in a type of position in which

20 employment customarily constitutes 500 or more

21 hours of service per year but less than 1,000 hours

22 of service per year,

23 completion of 250 hours of service within such period shall

24 be treated as completion of 500 hours of service.
85

•S 2514 IS

1 ‘‘(ii) For purposes of this subparagraph, the extent

2 to which employment in any type of position customarily

3 constitutes less than 1,000 hours of service per year shall

4 be determined with respect to each pension plan in accord5 ance with such regulations as the Secretary may prescribe

6 providing for consideration of facts and circumstances pe7 culiar to the work-force constituting the participants in

8 such plan.’’.

9 (3) ACCRUAL RULES.—Section 204(b)(4)(C) of

10 such Act (29 U.S.C. 1054(b)(4)(C)) is amended—

11 (A) by inserting ‘‘(i)’’ after ‘‘(C)’’; and

12 (B) by adding at the end the following new

13 clauses:

14 ‘‘(ii) For purposes of this subparagraph, in the case

15 of any employee who, as of the beginning of the period

16 designated by the plan pursuant to clause (i)—

17 ‘‘(I) has customarily completed 500 or more

18 hours of service per year but less than 1,000 hours

19 of service per year, or

20 ‘‘(II) is employed in a type of position in which

21 employment customarily constitutes 500 or more

22 hours of service per year but less than 1,000 hours

23 of service per year,

24 completion of 500 hours of service within such period shall

25 be treated as completion of 1,000 hours of service.
86

•S 2514 IS

1 ‘‘(iii) For purposes of clause (ii), the extent to which

2 employment in any type of position customarily constitutes

3 less than 1,000 hours of service per year shall be deter4 mined with respect to each pension plan in accordance

5 with such regulations as the Secretary may prescribe pro6 viding for consideration of facts and circumstances pecu7 liar to the work-force constituting the participants in such

8 plan.’’.

9 (b) TREATMENT OF EMPLOYEES WORKING AT LESS

10 THAN FULL-TIME UNDER GROUP HEALTH PLANS.

11 (1) IN GENERAL.—Part 2 of subtitle B of title

12 I of such Act is amended—

13 (A) by redesignating section 211 (29

14 U.S.C. 1061) as section 212; and

15 (B) by inserting after section 210 (29

16 U.S.C. 1060) the following new section:

17 ‘‘TREATMENT OF PART-TIME WORKERS UNDER GROUP

18 HEALTH PLANS

19 ‘‘SEC. 211. (a) IN GENERAL.—A reduction in the em20 ployer-provided premium under a group health plan with

21 respect to any employee for any period of coverage solely

22 because the employee’s customary employment is less than

23 full-time may be provided under such plan only if the em24 ployee is described in subsection (b) and only to the extent

25 permitted under subsection (c).
87

•S 2514 IS

1 ‘‘(b) REDUCTIONS APPLICABLE TO EMPLOYEES

2 WORKING LESS THAN FULL-TIME.—

3 ‘‘(1) IN GENERAL.—An employee is described in

4 this subsection if such employee, as of the beginning

5 of the period of coverage referred to in subsection

6 (a)—

7 ‘‘(A) has customarily completed less than

8 30 hours of service per week, or

9 ‘‘(B) is employed in a type of position in

10 which employment customarily constitutes less

11 than 30 hours of service per week.

12 ‘‘(2) REGULATIONS.—For purposes of para13 graph (1), whether employment in any type of posi14 tion customarily constitutes less than 30 hours of

15 service per week shall be determined with respect to

16 each group health plan in accordance with such reg17 ulations as the Secretary may prescribe providing

18 for consideration of facts and circumstances peculiar

19 to the work-force constituting the participants in

20 such plan.

21 ‘‘(c) AMOUNT OF PERMISSIBLE REDUCTION.—The

22 employer-provided premium under a group health plan

23 with respect to any employee for any period of coverage,

24 after the reduction permitted under subsection (a), shall

25 not be less than a ratable portion of the employer-provided
88

•S 2514 IS

1 premium which would be provided under such plan for

2 such period of coverage with respect to an employee who

3 completes 30 hours of service per week.

4 ‘‘(d) DEFINITIONS.—For purposes of this section—

5 ‘‘(1) GROUP HEALTH PLAN.—The term ‘group

6 health plan’ has the meaning provided such term in

7 section 607(1).

8 ‘‘(2) EMPLOYER-PROVIDED PREMIUM.—

9 ‘‘(A) IN GENERAL.—The term ‘employer10 provided premium’ under a plan for any period

11 of coverage means the portion of the applicable

12 premium under the plan for such period of cov13 erage which is attributable under the plan to

14 employer contributions.

15 ‘‘(B) APPLICABLE PREMIUM.—For pur16 poses of subparagraph (A), in determining the

17 applicable premium of a group health plan,

18 principles similar to the principles applicable

19 under section 604 shall apply.’’.

20 (2) CONFORMING AMENDMENTS.—

21 (A) Section 201(1) of such Act (29 U.S.C.

22 1051(1)) is amended by inserting ‘‘, except with

23 respect to section 211’’ before the semicolon.

24 (B) The table of contents in section 1 of

25 such Act is amended by striking the item relat-
89

•S 2514 IS

1 ing to section 211 and inserting the following

2 new items:

‘‘Sec. 211. Treatment of part-time workers under group health plans.

‘‘Sec. 212. Effective date.’’.

3 (c) EXPANSION OF DEFINITION OF EMPLOYEE TO

4 INCLUDE CERTAIN INDIVIDUALS WHOSE SERVICES ARE

5 LEASED OR CONTRACTED FOR.—Paragraph (6) of section

6 3 of such Act (29 U.S.C. 1002(6)) is amended—

7 (1) by inserting ‘‘(A)’’ after ‘‘(6)’’; and

8 (2) by adding at the end the following new sub9 paragraph:

10 ‘‘(B) Such term includes, with respect to any em11 ployer, any person who is not an employee (within the

12 meaning of subparagraph (A)) of such employer and who

13 provides services to such employer, if—

14 ‘‘(i) such person has (pursuant to an agreement

15 with such employer or any other person) performed

16 such services for such employer (or for such em17 ployer and related persons (within the meaning of

18 section 144(a)(3) of the Internal Revenue Code of

19 1986)) for a period of at least 1 year (6 months in

20 the case of core health benefits) at the rate of at

21 least 500 hours of service per year, and

22 ‘‘(ii) such services are of a type historically per23 formed, in the business field of the employer, by em24 ployees (within the meaning of subparagraph (A)).’’.
90

•S 2514 IS

1 (d) EFFECTIVE DATES.

2 (1) IN GENERAL.—Except as provided in para3 graph (2), the amendments made by this section

4 shall apply with respect to plan years beginning on

5 or after January 1, 1994.

6 (2) SPECIAL RULE FOR COLLECTIVELY BAR7 GAINED PLANS.—In the case of a plan maintained

8 pursuant to 1 or more collective bargaining agree9 ments between employee representatives and 1 or

10 more employers ratified on or before the date of the

11 enactment of this Act, paragraph (1) shall be ap12 plied to benefits pursuant to, and individuals covered

13 by, any such agreement by substituting for ‘‘Janu14 ary 1, 1994’’ the date of the commencement of the

15 first plan year beginning on or after the earlier of—

16 (A) the later of—

17 (i) January 1, 1994, or

18 (ii) the date on which the last of such

19 collective bargaining agreements termi20 nates (determined without regard to any

21 extension thereof after the date of the en22 actment of this Act), or

23 (B) January 1, 1996.

24 (3) PLAN AMENDMENTS.—If any amendment

25 made by this section requires an amendment to any
91

•S 2514 IS

1 plan, such plan amendment shall not be required to

2 be made before the first plan year beginning on or

3 after January 1, 1995, if—

4 (A) during the period after such amend5 ment made by this section takes effect and be6 fore such first plan year, the plan is operated

7 in accordance with the requirements of such

8 amendment made by this section, and

9 (B) such plan amendment applies retro10 actively to the period after such amendment

11 made by this section takes effect and such first

12 plan year.

13 A plan shall not be treated as failing to provide defi14 nitely determinable benefits or contributions, or to

15 be operated in accordance with the provisions of the

16 plan, merely because it operates in accordance with

17 this paragraph.

18 Subtitle F—Unemployment

19 Insurance Reform

20 SEC. 151. UNEMPLOYMENT INSURANCE REFORM.

21 (a) Subsection (a) of section 3304 of the Internal

22 Revenue Code of 1986 (relating to approval of State un23 employment compensation laws) is amended by striking

24 ‘‘and’’ at the end of paragraph (17), by redesignating
92

•S 2514 IS

1 paragraph (18) as paragraph (19), and by inserting after

2 paragraph (17) the following new paragraph:

3 ‘‘(18)(A) if any individual leaves employment

4 for a qualified family-related reason, for purposes of

5 determining such individual’s eligibility for com6 pensation for any subsequent week for which such

7 individual meets the State law requirements relating

8 to availability for work and active search for work—

9 ‘‘(i) such individual shall be treated as

10 leaving such employment for good cause, and

11 ‘‘(ii) any failure while the qualified family12 related reason continues to return to such em13 ployment or to otherwise meet such State law

14 requirements shall be disregarded,

15 ‘‘(B) for purposes of subparagraph (A), the

16 term ‘qualified family reason’ means any cir17 cumstance which entitles the individual to unpaid

18 leave under the Family and Medical Leave Act of

19 1993 (or would entitle the individual to such leave

20 if the individual’s employer were subject to the re21 quirements of such Act) whether or not the individ22 ual returns to employment after the leave to which

23 such individual is (or would be entitled); and’’.
93

•S 2514 IS

1 (b)(1) Except as provided by paragraph (2), the

2 amendment made by subsection (a) shall take effect on

3 November 1, 1993.

4 (2) In the case of any State the legislature of which

5 has not been in session for at least 30 calendar days

6 (whether or not successive) between the date of the enact7 ment of this Act and November 1, 1993, the amendment

8 made by subsection (a) shall take effect 30 calendar days

9 after the first day on which such legislature is in session

10 on or after November 1, 1993.

11 Subtitle G—Federal Temporary

12 Workers Protection Act

13 SEC. 161. ELIGIBILITY FOR HEALTH BENEFITS.

14 (a) IN GENERAL.—Paragraph (4) of section 8913(b)

15 of title 5, United States Code, is amended to read as fol16 lows:

17 ‘‘(4) an employee who is occupying a position

18 on a temporary basis, if such employee has, in the

19 aggregate, completed the equivalent of at least 1

20 year of service in such position within the preceding

21 2 years.’’.

22 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

23 (1) Section 8906a of title 5, United States Code, is re24 pealed.
94

•S 2514 IS

1 (2) The table of sections for chapter 89 of title 5,

2 United States Code, is amended by striking the item relat3 ing to section 8906a.

4 SEC. 162. EFFECTIVE DATE.

5 (a) IN GENERAL.—This Act and the amendments

6 made by this Act shall take effect on the date of the enact7 ment of this Act, and any change in contributions payable

8 by or on behalf of an individual to the Employees Health

9 Benefits Fund (described in section 8909 of title 5, United

10 States Code) as a result of the enactment of this Act shall

11 take effect as of the first applicable pay period beginning

12 on or after such date.

13 (b) CREDITABILITY OF PRIOR SERVICE.—Service

14 performed before the effective date of this Act may be

15 taken into account for purposes of the amendment made

16 by section 161(a).

17 Subtitle H—Legislative Pay Equity

18 Study

19 SEC. 171. DECLARATION OF POLICY.

20 The Congress is committed to the elimination of all

21 forms of discrimination that adversely affect pay or work22 ing conditions of any employee because of the race, color,

23 religion, sex, or national origin of the employee, and it is

24 the policy of the Congress that persons employed in the

25 legislative branch shall receive equal pay in cases in which
95

•S 2514 IS

1 the work performed is comparable, as measured by the

2 composite of skill, effort, responsibility, and working con3 ditions normally required in the performance of the job.

4 SEC. 172. ESTABLISHMENT OF COMMISSION.

5 (a) IN GENERAL.—There is established the Commis6 sion on Employment Discrimination in the Legislative

7 Branch (hereinafter in this resolution referred to as the

8 ‘‘Commission’’).

9 (b) APPOINTMENT OF MEMBERS.—The Commission

10 shall consist of thirteen members to be appointed for the

11 life of the Commission as follows:

12 (1) Four shall be Members of the House of

13 Representatives, appointed by the Speaker of the

14 House of Representatives, two upon recommendation

15 of the majority leader and two upon recommendation

16 of the minority leader.

17 (2) Four shall be Senators, appointed by the

18 President pro tempore, two upon recommendation of

19 the majority leader and two upon recommendation of

20 the minority leader.

21 (3) Two shall be other than Members of Con22 gress, appointed by the Speaker of the House of

23 Representatives and shall, to the extent practicable,

24 be persons with expertise in job evaluation. One such

25 member shall be appointed upon recommendation of
96

•S 2514 IS

1 the majority leader and one upon recommendation of

2 the minority leader.

3 (4) Two shall be other than Members of Con4 gress, appointed by the President pro tempore of the

5 Senate and shall, to the extent practicable, be per6 sons with expertise in job evaluation. One such

7 member shall be appointed upon recommendation of

8 the majority leader and one shall be appointed upon

9 recommendation of the minority leader.

10 (5) One shall be appointed by the Speaker of

11 the House of Representatives and the President pro

12 tempore of the Senate, acting jointly, upon rec13 ommendation of the members appointed under para14 graphs (1) through (4).

15 (c) PREREQUISITES RELATING TO CERTAIN AP16 POINTMENTS.—(1) Of the members of the Commission ap17 pointed under subsection (b)(3)—

18 (A) one shall be a member of one of the two

19 largest labor unions at the Library of Congress; and

20 (B) one shall be a manager at the Library of

21 Congress.

22 (2) Of the members of the Commission appointed

23 under subsection (b)(4)—

24 (A) one shall be a member of one of the two

25 largest labor unions at the Library of Congress; and
97

•S 2514 IS

1 (B) one shall be a manager at the Library of

2 Congress.

3 (3) The member appointed under paragraph (1)(A)

4 shall not be from the same labor union as the member

5 appointed under paragraph (2)(A).

6 (d) REMOVAL.—The person making an appointment

7 may remove a member of the Commission for neglect of

8 duty or malfeasance in office.

9 (e) VACANCIES.—A vacancy in the Commission shall

10 be filled in the manner in which the original appointment

11 is made.

12 (f) CHAIRMAN; VICE CHAIRMAN.—The Commission

13 shall elect a chairman and a vice chairman from among

14 its members. The chairman and vice chairman shall not

15 be of the same political party.

16 (g) QUORUM.—Seven members of the Commission

17 shall constitute a quorum for the transaction of business,

18 but the Commission may establish a lesser number for

19 holding hearings, taking testimony, and receiving evi20 dence.

21 (h) COMMENCEMENT OF OPERATIONS.—Members

22 shall be appointed and the Commission shall commence

23 operation not later than four weeks after the date on

24 which this resolution is agreed to.
98

•S 2514 IS

1 SEC. 173. FUNCTIONS OF COMMISSION.

2 (a) IN GENERAL.—The Commission shall—

3 (1) employ a nongovernmental consultant with

4 expertise in job evaluation to study and compare the

5 compensation paid within and between job classifica6 tions in the Library of Congress and to analyze per7 sonnel policies and practices in the Library of Con8 gress;

9 (2) evaluate the compensation system and per10 sonnel policies and practices in the Library of Con11 gress for compliance with title VII of the Civil

12 Rights Act of 1964 and make specific recommenda13 tions (other than any recommendation that, if imple14 mented, would result in a reduction in the rate of

15 pay payable for any position) to the Congress for

16 such action as may be necessary to achieve that

17 compliance;

18 (3) develop a comprehensive plan for applica19 tion of the principles of title VII of the Civil Rights

20 Act of 1964 throughout the legislative branch; and

21 (4) make specific recommendations (other than

22 any recommendation that, if implemented, would re23 sult in a reduction in the rate of pay payable for any

24 position) to the Congress for improvement of person25 nel policies and practices in the legislative branch
99

•S 2514 IS

1 that may be necessary to carry out the policy de2 clared in section 171.

3 (b) SPECIFIC REQUIREMENT RELATING TO THE

4 CONSULTANT.—In carrying out the requirements of para5 graph (1) of subsection (a), the consultant employed under

6 such paragraph shall use standard objective job-evaluation

7 techniques to determine whether the compensation system

8 at the Library of Congress is in compliance with the policy

9 objectives in section 171.

10 SEC. 174. STAFF OF COMMISSION.

11 (a) STAFF DIRECTOR.—The Commission shall have

12 a Staff Director who shall be appointed by the Chairman

13 and who shall be paid at a rate not to exceed the maximum

14 rate of basic pay payable under the General Schedule (as

15 determined under section 5376 of title 5, United States

16 Code).

17 (b) ADDITIONAL STAFF.—With the approval of the

18 Commission, the Chairman may appoint, terminate, and

19 fix the pay of additional staff. Any person so appointed

20 may be paid at a rate not to exceed the maximum rate

21 of basic pay payable for grade GS–15 of the General

22 Schedule, under section 5332 of title 5, United States

23 Code.
100

•S 2514 IS

1 SEC. 175. COMPENSATION OF MEMBERS.

2 (a) PROHIBITION OF COMPENSATION OF CERTAIN

3 MEMBERS.—A member of the Commission who is a Mem4 ber of Congress or a full-time officer or employee of the

5 United States shall receive no additional pay by reason

6 of service on the Commission.

7 (b) COMPENSATION OF OTHER MEMBERS.—Any

8 other member of the Commission shall be paid at a rate

9 equal to the daily equivalent of the maximum annual rate

10 of basic pay payable under the General Schedule (as deter11 mined under section 5376 of title 5, United States Code)

12 for each day, including travel time, such member is en13 gaged in the performance of duties of the Commission.

14 SEC. 176. POWERS OF COMMISSION.

15 The Commission may hold hearings, take testimony,

16 receive evidence, administer oaths or affirmations to wit17 nesses appearing before it, and authorize any member or

18 agent of the Commission to exercise such powers.

19 SEC. 177. REPORTS AND TERMINATION OF COMMISSION.

20 The Commission may submit interim reports to the

21 Congress and shall submit a final report to the Congress

22 not later than 18 months after the date on which this reso23 lution is agreed to. The Commission shall cease to exist

24 thirty days after submitting the final report.
101

•S 2514 IS

1 SEC. 178. ADMINISTRATIVE PROVISIONS.

2 (a) FUNDING.—There shall be paid from the contin3 gent fund of the House of Representatives and the contin4 gent fund of the Senate such sums as may be necessary

5 to carry out this resolution. One-half of the total of such

6 sums shall be paid from each such fund. Payment shall

7 be upon vouchers submitted by the Chairman of the Com8 mission and approved by the Committee on House Admin9 istration of the House of Representatives or the Commit10 tee on Rules and Administration of the Senate, as appro11 priate.

12 (b) STATUS OF MEMBERS AND STAFF.—Members of

13 the Commission (other than Members of Congress) and

14 the staff of the Commission shall be treated as detailed

15 employees, or as temporary or intermittent employees of

16 the House or of the Senate, as appropriate.

17 (c) REGULATIONS.—The Committee on House Ad18 ministration of the House of Representatives and the

19 Committee on Rules and Administration of the Senate,

20 acting jointly, shall prescribe such regulations as may be

21 necessary to carry out this resolution. Employment of ex22 perts and consultants, travel, procurement of support

23 services, procedures for securing information, and other

24 administrative matters with respect to the Commission

25 shall be in accordance with such regulations.
102

•S 2514 IS

1 TITLE II—ECONOMIC

2 OPPORTUNITY

3 Subtitle A—Women’s Business

4 Procurement Assistance Act

5 SEC. 201. SHORT TITLE.

6 This subtitle may be cited as the ‘‘Women’s Business

7 Procurement Assistance Act’’.

8 SEC. 202. GOAL SETTING.

9 Section 15(g) of the Small Business Act (15 U.S.C.

10 644(g)) is amended—

11 (1) in paragraph (1) by inserting ‘‘, small busi12 ness concerns owned and controlled by women,’’

13 after ‘‘small business concerns’’ the first place it ap14 pears in the first sentence and the first place it ap15 pears in the fourth sentence;

16 (2) in the first sentence of paragraph (2) by in17 serting ‘‘by small business concerns owned and con18 trolled by women,’’ after ‘‘small business concerns,’’;

19 (3) in the second sentence of paragraph (2) by

20 inserting ‘‘, small business concerns owned and con21 trolled by women,’’ after ‘‘small business concerns’’

22 the first place it appears; and

23 (4) in the fourth sentence of paragraph (2) by

24 inserting ‘‘small business concerns owned and con-
103

•S 2514 IS

1 trolled by women and’’ after ‘‘including participation

2 by’’.

3 SEC. 203. REPORTING.

4 Section 15(h) of the Small Business Act (15 U.S.C.

5 644(h)) is amended—

6 (1) by inserting ‘‘, small business concerns

7 owned and controlled by women,’’ after ‘‘small busi8 ness concerns’’ the first place it appears in para9 graph (1), the first place it appears in paragraph

10 (2)(A), and the first place it appears in paragraph

11 (2)(D);

12 (2) in paragraph (1) by inserting ‘‘and sub13 contracts’’ after ‘‘contracts’’;

14 (3) by adding at the end of paragraph (1) the

15 following new sentence: ‘‘The Administration shall

16 submit to the Committee on Small Business of the

17 Senate and the Committee on Small Business of the

18 House of Representatives information obtained from

19 such reports, together with appropriate comments.’’;

20 and

21 (4) in paragraph (2)(F) by striking ‘‘women22 owned small business enterprises’’ and inserting

23 ‘‘small business concerns owned and controlled by

24 women’’.
104

•S 2514 IS

1 SEC. 204. SUBCONTRACTING.

2 (a) STATEMENT OF POLICY.—Section 8(d)(1) of the

3 Small Business Act (15 U.S.C. 637(d)(1)) is amended—

4 (1) in the first sentence by inserting ‘‘small

5 business concerns owned and controlled by women,’’

6 after ‘‘small business concerns,’’; and

7 (2) in the second sentence by inserting ‘‘, small

8 business concerns owned and controlled by women,’’

9 after ‘‘small business concerns’’ the first place it

10 appears.

11 (b) CONTRACT CLAUSE.—The contract clause speci12 fied in section 8(d)(3) of the Small Business Act (15

13 U.S.C. 637(d)(3)) is amended as follows:

14 (1) Subparagraph (A) of such clause is amend15 ed by inserting ‘‘, small business concerns owned

16 and controlled by women,’’ after ‘‘small business

17 concerns’’ the first place it appears in the first sen18 tence and the first place it appears in the second

19 sentence.

20 (2) Subparagraph (C) of such clause is amend21 ed to read as follows:

22 ‘‘(C)(i) As used in this contract, the term ‘small

23 business concern’ means a small business concern as

24 defined pursuant to section 3 of the Small Business

25 Act and relevant regulations promulgated pursuant

26 thereto.
105

•S 2514 IS

1 ‘‘(ii) As used in this contract, the term ‘small

2 business concern owned and controlled by socially

3 and economically disadvantaged individuals’ means a

4 small business concern—

5 ‘‘(I) which is at least 51 percent owned by

6 one or more socially and economically disadvan7 taged individuals; or, in the case of any publicly

8 owned business, at least 51 percent of the stock

9 of which is owned by one or more socially and

10 economically disadvantaged individuals; and

11 ‘‘(II) whose management and daily busi12 ness operations are controlled by one or more of

13 such individuals.

14 The contractor shall presume that socially and eco15 nomically disadvantaged individuals include Black

16 Americans, Hispanic Americans, Native Americans,

17 Asian Pacific Americans, and other minorities, or

18 any other individual found to be disadvantaged by

19 the Administration pursuant to section 8(a) of the

20 Small Business Act.

21 ‘‘(iii) As used in this contract, the term ‘small

22 business concern owned and controlled by women’

23 means a small business concern—

24 ‘‘(I) which is at least 51 percent owned by

25 one or more women; or, in the case of any pub-
106

•S 2514 IS

1 licly owned business, at least 51 percent of the

2 stock of which is owned by one or more women;

3 and

4 ‘‘(II) whose management and daily busi5 ness operations are controlled by such women.

6 The contractor shall presume that women have been

7 subjected to gender based discrimination and may

8 determine whether a small business concern meets

9 the percentage requirements under subclause (I)

10 without regard to the community property laws of

11 any jurisdiction.’’.

12 (c) CONFORMING AMENDMENTS.—Section 8(d) of

13 the Small Business Act (15 U.S.C. 637(d)) is amended

14 by inserting ‘‘, small business concerns owned and con15 trolled by women,’’ after ‘‘small business concerns’’ the

16 first place it appears in paragraphs (3)(D), (4)(D),

17 (4)(E), (6)(A), (6)(C), (6)(F), (10)(B), and (11).

18 (d) EXCLUSION.—No business concern shall be

19 deemed eligible for any contract or other assistance pursu20 ant to section 2323 of title 10, United States Code, due

21 solely to the provisions of this section.

22 SEC. 205. WOMEN-IN-BUSINESS SPECIALISTS.

23 Section 15(k) of the Small Business Act (15 U.S.C.

24 644(k)) is amended—

25 (1) by inserting ‘‘(1)’’ after ‘‘(k)’’;
107

•S 2514 IS

1 (2) by redesignating paragraphs (1), (2), (3),

2 (4), (5), (6), (7), (8), and (9) as subparagraphs (A),

3 (B), (C), (D), (E), (F), (G), (H), and (I), respec4 tively;

5 (3) by striking ‘‘and’’ at the end of subpara6 graph (H) (as redesignated);

7 (4) in subparagraph (I) (as redesignated), by

8 striking out the period after ‘‘Code’’ and all that fol9 lows through ‘‘shall be made’’ and inserting in lieu

10 thereof a comma, and by striking the period after

11 ‘‘contract file’’ and inserting ‘‘, and’’;

12 (5) by inserting after subparagraph (I) (as re13 designated) the following new subparagraph:

14 ‘‘(J) subject to paragraph (2)(A), designate an

15 employee of such office to be a women-in-business

16 specialist responsible for the implementation and

17 execution of programs designed to assist small busi18 ness concerns owned and controlled by women.’’;

19 (6) by designating the last sentence as para20 graph (2); and

21 (7) by adding at the end the following new

22 paragraph:

23 ‘‘(3)(A) The Director of Small and Disadvantaged

24 Business Utilization in a Federal agency shall ensure that

25 the women-in-business specialist designated pursuant to
108

•S 2514 IS

1 paragraph (1)(J) has sufficient knowledge of small busi2 ness concerns owned and controlled by women and the

3 Federal procurement process, other appropriate qualifica4 tions, and appropriate training from the Office of Wom5 en’s Business Ownership to effectively carry out the spe6 cialist’s responsibilities under this Act.

7 ‘‘(B) Each women-in-business specialist designated

8 pursuant to paragraph (1)(J) in a Federal agency shall

9 work full time to initiate and execute programs to assist

10 small business concerns owned and controlled by women

11 in participating in the performance of contracts let by the

12 agency. The specialist shall—

13 ‘‘(i) respond to requests from small business

14 concerns owned and controlled by women;

15 ‘‘(ii) identify and solicit offers from small busi16 ness concerns owned and controlled by women, as

17 required under section 15(p) of this Act, through

18 means such as sending solicitation packages to such

19 concerns for each proposed contract for which such

20 concerns may be eligible to compete and holding

21 workshops on procurement for such concerns; and

22 ‘‘(iii) regularly monitor the agency’s progress

23 toward meeting the annual goal established under

24 subsection (g) for participation by small business

25 concerns owned and controlled by women.’’.
109

•S 2514 IS

1 SEC. 206. OUTREACH.

2 Section 15 the Small Business Act (15 U.S.C. 644)

3 is amended by adding at the end the following new sub4 section:

5 ‘‘(p) Each Federal agency having procurement pow6 ers shall engage in affirmative efforts to identify and so7 licit offers from small business concerns owned and con8 trolled by women and the small business concerns owned

9 and controlled by socially and economically disadvantaged

10 individuals. To the maximum extent practicable, a rep11 resentative number of such concerns shall receive solicita12 tion packages for each proposed acquisition for which such

13 concerns may be eligible to compete.’’.

14 SEC. 207. ESTABLISHMENT OF THE OFFICE OF WOMEN’S

15 BUSINESS OWNERSHIP.

16 The Small Business Act (15 U.S.C. 631 et seq.) is

17 amended by adding at the end the following new section:

18 ‘‘SEC. 28. OFFICE OF WOMEN’S BUSINESS OWNERSHIP.

19 ‘‘(a) ESTABLISHMENT.—There is established in the

20 Small Business Administration the Office of Women’s

21 Business Ownership (hereinafter in this section referred

22 to as the ‘Office’).

23 ‘‘(b) DIRECTOR.—The Director of the Office (herein24 after in this section referred to as the ‘Director’) shall be

25 appointed by the Administrator not later than sixty days

26 after the date of the enactment of this section.
110

•S 2514 IS

1 ‘‘(c) FUNCTIONS.—The Director shall perform the

2 following functions:

3 ‘‘(1) Promote, coordinate, and monitor the

4 plans, programs, and operations of Federal depart5 ments and agencies which may contribute to the es6 tablishment, preservation, and strengthening of

7 small business concerns owned and controlled by

8 women. The Director may, as appropriate, develop

9 comprehensive interagency plans and specific pro10 gram goals for small business concerns owned and

11 controlled by women with the cooperation of the

12 departments and agencies.

13 ‘‘(2) Establish policies, definitions, procedures,

14 and guidelines to govern the implementation, inter15 pretation, and application of this section, and gen16 erally perform such functions and take such steps as

17 the Director may consider to be necessary or appro18 priate to carry out this section.

19 ‘‘(3) Promote the mobilization of activities and

20 resources of State and local governments, business

21 and trade associations, private industry, colleges and

22 universities, foundations, professional organizations,

23 and volunteer and other groups toward the growth

24 of small business concerns owned and controlled by

25 women, and facilitate the coordination of the efforts
111

•S 2514 IS

1 of such groups with those of Federal departments

2 and agencies.

3 ‘‘(4) Make an annual assessment of the

4 progress made in the Federal Government toward

5 assisting small business concerns owned and con6 trolled by women to enter the mainstream of busi7 ness ownership and provide recommendations for fu8 ture actions to the Administrator.

9 ‘‘(5) Convene and consult (as necessary) with

10 persons inside and outside government to develop

11 and promote new ideas concerning the development

12 of small business concerns owned and controlled by

13 women.

14 ‘‘(6) Consider the findings and recommenda15 tions of government and private sector investigations

16 and studies of the problems of women entrepreneurs,

17 and promote further research into such problems.

18 ‘‘(7) Monitor the contracting and subcontract19 ing performance of each department, agency, and

20 business enterprise participating under this section.

21 ‘‘(8) Promote access and participation for small

22 business concerns owned and controlled by women to

23 a fair proportion of the broad array of purchases

24 and contracts for property and services for the Fed25 eral Government.
112

•S 2514 IS

1 ‘‘(9) Provide training as needed to women-in2 business specialists designated pursuant to section

3 15(k)(1)(J) to carry out their responsibilities under

4 this Act.’’.

5 SEC. 208. GENERAL ACCOUNTING OFFICE REPORT.

6 (a) REPORT REQUIREMENT.—Not later than 3 years

7 after the date of the enactment of this Act, the Comptrol8 ler General shall submit to Congress a report comparing

9 the number of small business concerns owned and con10 trolled by women procuring Federal contracts during the

11 year preceding the date of the enactment of this Act with

12 the number of such businesses during each of the 3 years

13 occurring after such date. If the number of such busi14 nesses did not increase significantly by the end of the 3-

15 year period beginning on the date of the enactment of this

16 Act, the Comptroller General shall include in the report

17 recommendations on actions that could be taken to

18 increase the number.

19 (b) SENSE OF CONGRESS.—If the report required

20 under subsection (a) shows that the number of small busi21 ness concerns owned and controlled by women did not in22 crease significantly by the end of the 3-year period begin23 ning on the date of the enactment of this Act, it is the

24 sense of Congress that further legislative steps should be

25 taken to ensure that the number of Federal contracts en-
113

•S 2514 IS

1 tered into with small business concerns owned and con2 trolled by women realistically reflects the potential of such

3 business concerns to perform Federal contracting and sub4 contracting work.

5 Subtitle B—Microenterprise

6 Opportunity Expansion Act

7 SEC. 211. SHORT TITLE.

8 This subtitle may be cited as the ‘‘Microenterprise

9 Opportunity Expansion Act’’.

10 SEC. 212. PUBLIC ASSISTANCE PROVISIONS.

11 (a) BUSINESS ASSETS EXCLUDED FROM RESOURCES

12 AND INCOME.—

13 (1) AFDC.—

14 (A) EXCLUSION FROM RESOURCES.—Sec15 tion 402(a)(7)(B) of the Social Security Act

16 (42 U.S.C. 602(a)(8)(A)) is amended—

17 (i) by striking ‘‘or’’ at the end of

18 clause (iii); and

19 (ii) by inserting before the semicolon

20 the following: ‘‘, or (v) any asset of the

21 family which is primarily used for business

22 purposes in a business owned, in whole or

23 in part, by an individual eligible for aid

24 under any State plan approved under this

25 part; and’’.
114

•S 2514 IS

1 (B) EXCLUSION FROM INCOME.—Section

2 402(a)(8)(A) of such Act (42 U.S.C.

3 602(a)(8)(A)) is amended—

4 (i) by striking ‘‘and’’ at the end of

5 clause (vii); and

6 (ii) by inserting after clause (viii) the

7 following:

8 ‘‘(ix) shall disregard from the income of

9 any child, relative, or other individual specified

10 in clause (ii) any asset which is primarily used

11 for business purposes in a business owned, in

12 whole or in part, by an individual eligible for

13 aid under any State plan approved under this

14 part; and’’.

15 (2) SSI.—

16 (A) EXCLUSION FROM INCOME.—Section

17 1612(b) of such Act (42 U.S.C. 1382a(b)) is

18 amended—

19 (i) by striking ‘‘and’’ at the end of

20 paragraph (17);

21 (ii) in paragraph (18), by striking the

22 period and inserting ‘‘; and’’; and

23 (iii) by adding at the end the follow24 ing:
115

•S 2514 IS

1 ‘‘(19) any asset of such individual (or such

2 spouse) which is primarily used for business pur3 poses in a business owned, in whole or in part, by

4 an individual eligible for aid under any State plan

5 approved under part A of title IV.’’.

6 (B) EXCLUSION FROM RESOURCES.—Sec7 tion 1613(a) of such Act (42 U.S.C. 1382b(a))

8 is amended—

9 (i) by striking ‘‘and’’ at the end of

10 paragraph (9);

11 (ii) in paragraph (10), by striking the

12 period and inserting ‘‘; and’’; and

13 (iii) by inserting after paragraph (10)

14 the following:

15 ‘‘(11) any asset of (including any amount re16 ceived as a loan by) such individual (or such spouse)

17 which is primarily used for business purposes in a

18 business owned, in whole or in part, by an individual

19 eligible for aid under any State plan approved under

20 part A of title IV.’’.

21 (b) PUBLIC ASSISTANCE BENEFITS EXTENDED FOR

22 PERSONS WITH INCOME FROM OR RESOURCES IN A

23 MICROENTERPRISE.—
116

•S 2514 IS

1 (1) AFDC AND MEDICAID.—Section 402(a) of

2 such Act (42 U.S.C. 602(a)) is amended by inserting

3 after paragraph (28) the following:

4 ‘‘(29) notwithstanding paragraphs (7) and (8),

5 provide that, during the 2-year period beginning on

6 the first day any member of a family eligible for

7 benefits under the State plan sells any good or serv8 ice as part of operating a commercial enterprise with

9 5 or fewer employees, which is owned in whole or in

10 part by such family member, all income of such fam11 ily member attributable to the enterprise and all re12 sources in which such family member has a bene13 ficial interest used primarily in the enterprise shall

14 be disregarded in determining the amount of aid to

15 which the family is entitled under the State plan;’’.

16 (2) SSI AND MEDICAID.—

17 (A) EXCLUSION FROM INCOME.—Section

18 1612(b) of such Act (42 U.S.C. 1382a(b)), as

19 amended by subsection (a)(2)(A) of this section,

20 is amended—

21 (i) by striking ‘‘and’’ at the end of

22 paragraph (18);

23 (ii) in paragraph (19), by striking the

24 period and inserting ‘‘; and’’; and
117

•S 2514 IS

1 (iii) by adding at the end the follow2 ing:

3 ‘‘(20) during the 2-year period beginning on the

4 first day such individual (or such spouse) sells any

5 good or service as part of operating a commercial

6 enterprise with 5 or fewer employees, which is owned

7 in whole or in part by such individual (or such

8 spouse), all income of such individual (or such

9 spouse) attributable to the enterprise.’’.

10 (B) EXCLUSION FROM RESOURCES.—Sec11 tion 1613(a) of such Act (42 U.S.C. 1382b(a)),

12 as amended by subsection (a)(2)(B) of this sec13 tion, is amended—

14 (i) by striking ‘‘and’’ at the end of

15 paragraph (10);

16 (ii) in paragraph (11), by striking the

17 period and inserting ‘‘; and’’; and

18 (iii) by inserting after paragraph (11)

19 the following:

20 ‘‘(12) during the 2-year period beginning on the

21 first day such individual (or such spouse) sells any

22 good or service as part of operating a commercial

23 enterprise with 5 or fewer employees, which is owned

24 in whole or in part by such individual (or such
118

•S 2514 IS

1 spouse), all resources of such individual (or such

2 spouse) that are used primarily in the enterprise.’’.

3 SEC. 213. UNEMPLOYMENT COMPENSATION FOR INDIVID4 UALS STARTING MICROENTERPRISES.

5 (a) STATE LAW REQUIREMENTS.—Subsection (a) of

6 section 3304 of the Internal Revenue Code of 1986 (relat7 ing to State law requirements) is amended by striking

8 ‘‘and’’ at the end of paragraph (17), by redesignating

9 paragraph (18) as paragraph (19), and by inserting after

10 paragraph (17) the following new paragraph:

11 ‘‘(18) compensation shall be payable to individ12 uals starting microenterprises as provided in section

13 3(b) of the Act for microenterprises; and’’.

14 (b) PAYMENT OF COMPENSATION TO INDIVIDUALS

15 STARTING MICROENTERPRISES.—

16 (1) IN GENERAL.—For purposes of section

17 3304(a)(18) of the Internal Revenue Code of 1986,

18 a State law shall provide that—

19 (A) each individual who is an eligible indi20 vidual with respect to any benefit year shall be

21 entitled to receive regular or extended unem22 ployment compensation, as the case may be,

23 without regard to any State or Federal require24 ments relating to availability for work, active
119

•S 2514 IS

1 search for work, or refusal to accept suitable

2 work, and

3 (B) such individual shall be considered to

4 be unemployed for purposes of the State and

5 Federal laws applicable to unemployment com6 pensation, as long as the individual is actively

7 involved in the ownership and operation of a

8 microenterprise or the preparation of a business

9 plan for the ownership and operation of a

10 microenterprise and is receiving guidance or

11 consultation in starting up or operating a

12 microenterprise from an experienced entre13 preneur or provider of technical business assist14 ance.

15 (2) AUTHORIZATION FOR USING UNEMPLOY16 MENT FUNDS TO PROVIDE STARTUP ASSISTANCE.—

17 Nothing in section 3304(a)(4) or 3306(f) of the In18 ternal Revenue Code of 1986 or section 303(a)(5) of

19 the Social Security Act shall prevent amounts in a

20 State unemployment fund from being used to pro21 vide assistance to eligible individuals in starting

22 microenterprises. The amount of assistance so pro23 vided shall be in the form of a lump sum and shall

24 be in lieu of the periodic payments of compensation

25 to which the individual would otherwise have been
120

•S 2514 IS

1 entitled and shall not exceed the aggregate amount

2 of compensation to which the individual would other3 wise have been so entitled.

4 (3) DEFINITIONS.—For purposes of this sec5 tion—

6 (A) ELIGIBLE INDIVIDUAL.—The term ‘‘el7 igible individual’’ means, with respect to any

8 benefit year, an individual who—

9 (i) is eligible to receive regular or ex10 tended compensation under the State law

11 during such benefit year,

12 (ii) is starting a microenterprise in

13 which the individual will have an ownership

14 interest, and

15 (iii) submits a request to the State

16 agency for compensation under this sub17 section.

18 (B) MICROENTERPRISE.—The term

19 ‘‘microenterprise’’ means any unincorporated

20 trade or business with 5 or fewer employees, 1

21 or more of whom own the enterprise.

22 (C) OTHER TERMS.—The terms ‘‘com23 pensation’’, ‘‘extended compensation’’, ‘‘regular

24 compensation’’, ‘‘benefit year’’, ‘‘State’’, and

25 ‘‘State law’’ have the respective meanings given
121

•S 2514 IS

1 to such terms under section 205 of the Federal2 State Extended Unemployment Compensation

3 Act of 1970.

4 SEC. 214. TREATMENT OF MICROENTERPRISE LOANS AND

5 GRANTS BY INSURED DEPOSITORY INSTITU6 TIONS AS COMMUNITY REINVESTMENT.

7 (a) IN GENERAL.—Section 804 of the Community

8 Reinvestment Act of 1977 (12 U.S.C. 2903) is amended—

9 (1) by striking ‘‘SEC. 804. In connection with’’

10 and inserting ‘‘(a) IN GENERAL.—In connection

11 with’’; and

12 (2) by adding at the end the following new sub13 sections:

14 ‘‘(b) MICROENTERPRISE LOANS.—

15 ‘‘(1) TREATMENT OF LOANS AND GRANTS.—

16 The following amounts shall be treated as an invest17 ment in a regulated financial institution’s commu18 nity for purposes of subsection (a):

19 ‘‘(A) The amount of any loan described in

20 paragraph (2)(A) made by the regulated finan21 cial institution directly to a microenterprise, if

22 the loan is made in accordance with the require23 ments of subsection (c).

24 ‘‘(B) The amount of any grant or donation

25 made by the regulated financial institution to
122

•S 2514 IS

1 any microenterprise intermediary to meet oper2 ating costs of the intermediary, including the

3 costs associated with training, technical assist4 ance, and other support services provided by

5 the intermediary to microenterprises.

6 ‘‘(C) The amount of any regulated finan7 cial institution’s investment in a revolving fund

8 established by the institution for loans to

9 microenterprise intermediaries for lending to

10 microenterprises if—

11 ‘‘(i) the amount of the investment in

12 the revolving fund is equal to or greater

13 than the amount which is equal to 0.05

14 percent of the assets of the institution;

15 ‘‘(ii) the regulated financial institu16 tion—

17 ‘‘(I) makes grants or donations

18 described in subparagraph (B) to

19 microenterprise intermediaries the

20 total amount of which equals or ex21 ceeds the amount which is equal to 15

22 percent of the amount required to be

23 invested in the revolving fund under

24 clause (i); or
123

•S 2514 IS

1 ‘‘(II) provides financial services,

2 including the establishment and main3 tenance of a transaction account, for

4 a microenterprise (or any individual

5 who controls the microenterprise) who

6 receives a microenterprise loan from a

7 microenterprise intermediary, at pref8 erential or reduced rates which are

9 at least as favorable to the

10 microenterprise as the rates offered

11 for such services to the institution’s

12 most preferred commercial customers;

13 and

14 ‘‘(iii) loans from the revolving fund

15 may be made only to microenterprise

16 intermediaries who agree to use the pro17 ceeds of the loan to make microenterprise

18 loans in accordance with the requirements

19 of subsection (c).

20 ‘‘(2) MICROENTERPRISE LOAN.—For purposes

21 of this subsection and subsection (c), the term

22 ‘microenterprise loan’—

23 ‘‘(A) means a loan—
124

•S 2514 IS

1 ‘‘(i) to a commercial enterprise with 5

2 or fewer employees, 1 or more of whom

3 own the enterprise;

4 ‘‘(ii) in amounts not less than $100

5 and not more than $10,000;

6 ‘‘(iii) the interest rate on which is

7 comparable to the interest rate charged on

8 secured commercial loans offered by the

9 regulated financial institution to the insti10 tution’s most preferred commercial cus11 tomers;

12 ‘‘(iv) which—

13 ‘‘(I) is not secured by collateral;

14 or

15 ‘‘(II) is secured by collateral the

16 value of which, as a percentage of the

17 amount of the loan, is substantially

18 less than the percentage generally re19 quired by the institution for commer20 cial loans; and

21 ‘‘(v) the terms of which may permit

22 the deferral of principal or interest pay23 ments otherwise due under such terms;

24 and
125

•S 2514 IS

1 ‘‘(B) includes a loan to a microenterprise

2 intermediary the proceeds of which will be used

3 by the intermediary for making loans described

4 in subparagraph (A).

5 ‘‘(c) CRITERIA FOR MICROENTERPRISE LOANS.—

6 ‘‘(1) IN GENERAL.—A microenterprise loan

7 meets the requirements of this subsection if the loan

8 is made in accordance with the following criteria:

9 ‘‘(A) In considering any loan to a

10 microenterprise, the lender takes into account—

11 ‘‘(i) the creditworthiness of any per12 son who controls the microenterprise in

13 lieu of the creditworthiness of the enter14 prise;

15 ‘‘(ii) in the case of a microenterprise

16 which is a startup business, whether the

17 microenterprise is soundly conceived; and

18 ‘‘(iii) the need of the microenterprise

19 for expansion capital.

20 ‘‘(B) The lender accepts as collateral for

21 the loan a security interest in any personal

22 property of any person who controls the

23 microenterprise which consists of consumer or

24 household goods.
126

•S 2514 IS

1 ‘‘(C) The lender does not require collateral

2 or a secured interest for more than 50 percent

3 of the face amount of the loan.

4 ‘‘(D) The loans are made in amounts not

5 less than $100 and not more than $10,000 to

6 persons who would not otherwise qualify for a

7 commercial loan.

8 ‘‘(E) The lender provides technical assist9 ance, training, and counseling in business prac10 tices, such as accounting, marketing, manage11 ment, sales, financial practices, and general

12 business practices, and closely monitors the

13 microenterprise during the period the loan is

14 outstanding, including the enterprise’s loan re15 payment performance.

16 ‘‘(2) LENDER DEFINED.—For purposes of

17 paragraph (1), the term ‘lender’ means—

18 ‘‘(A) in the case of a microenterprise loan

19 by a regulated financial institution to a

20 microenterprise, the regulated financial institu21 tion; and

22 ‘‘(B) in the case of a microenterprise loan

23 by a microenterprise intermediary to a

24 microenterprise, the microenterprise inter25 mediary.’’.
127

•S 2514 IS

1 (b) CLERICAL AMENDMENT.—Section 804 of the

2 Community Reinvestment Act of 1977 (12 U.S.C. 2903)

3 is amended by inserting before subsection (a) (as so des4 ignated by subsection (a)(1) of this section) the following

5 new heading:

6 ‘‘SEC. 804. ASSESSMENT OF RECORD OF MEETING COMMU7 NITY CREDIT NEEDS.’’.

8 SEC. 215. TREATMENT OF MICROENTERPRISE LOANS OF

9 SAVINGS ASSOCIATIONS AS QUALIFIED

10 THRIFT INVESTMENTS.

11 (a) IN GENERAL.—Section 10(m)(4)(C)(ii) of the

12 Home Owners’ Loan Act (12 U.S.C. 1467a(m)(4)(C)(ii))

13 is amended by adding at the end the following new

14 subclause:

15 ‘‘(VII) The aggregate amount of

16 microenterprise loans held by the sav17 ings association.’’.

18 (b) MICROENTERPRISE LOAN DEFINED.—Section

19 10(m)(4) of the Home Owners’ Loan Act (12 U.S.C.

20 1467a(m)(4)) is amended by adding at the end the follow21 ing new subparagraph:

22 ‘‘(D) MICROENTERPRISE LOAN.—For pur23 poses of this paragraph, the term

24 ‘microenterprise loan’—

25 ‘‘(i) means a loan—
128

•S 2514 IS

1 ‘‘(I) to a commercial enterprise

2 with 5 or fewer employees, 1 or more

3 of whom own the enterprise;

4 ‘‘(II) in amounts not less than

5 $100 and not more than $10,000; and

6 ‘‘(III) the interest rate on which

7 is comparable to the interest rate

8 charged on secured commercial loans

9 offered by the savings association to

10 the association’s most preferred com11 mercial customers;

12 ‘‘(IV) which is not secured by

13 collateral or is secured by collateral

14 the value of which, as a percentage of

15 the amount of the loan, is substan16 tially less than the percentage gen17 erally required by the institution for

18 commercial loans; and

19 ‘‘(V) the terms of which may per20 mit the deferral of principal or inter21 est payments otherwise due under

22 such terms;

23 ‘‘(ii) includes a loan to a

24 microenterprise intermediary the proceeds

25 of which will be used by the intermediary
129

•S 2514 IS

1 for making loans described in clause (i);

2 and

3 ‘‘(iii) does not include—

4 ‘‘(I) any loan to a micro5 enterprise which does not meet the re6 quirements of paragraph (8); or

7 ‘‘(II) any loan to a micro8 enterprise intermediary which does

9 not agree to use the proceeds of the

10 loan to make microenterprise loans in

11 accordance with the requirements of

12 paragraph (8).’’.

13 (c) CRITERIA FOR MICROENTERPRISE LOANS.—Sec14 tion 10(m) of the Home Owners’ Loan Act (12 U.S.C.

15 1467a(m)) is amended by adding at the end the following

16 new paragraph:

17 ‘‘(8) CRITERIA FOR MICROENTERPRISE

18 LOANS.—

19 ‘‘(A) IN GENERAL.—A microenterprise

20 loan meets the requirements of this paragraph

21 only if the savings association makes the

22 microenterprise loan, or the microenterprise

23 intermediary which receives a loan from the as24 sociation, agrees to use the proceeds of the loan
130

•S 2514 IS

1 to make microenterprise loans in accordance

2 with the following criteria:

3 ‘‘(i) In considering any loan to a

4 microenterprise, the lender takes into ac5 count—

6 ‘‘(I) the creditworthiness of any

7 person who controls the

8 microenterprise in lieu of the credit9 worthiness of the enterprise;

10 ‘‘(II) in the case of a

11 microenterprise which is a startup

12 business, whether the microenterprise

13 is soundly conceived; and

14 ‘‘(III) the need of the

15 microenterprise for expansion capital.

16 ‘‘(ii) The lender accepts as collateral

17 for the loan a security interest in any per18 sonal property of any person who controls

19 the microenterprise which consists of

20 consumer or household goods.

21 ‘‘(iii) The lender does not require col22 lateral or a secured interest for more than

23 50 percent of the face amount of the loan.

24 ‘‘(iv) The loans are made in amounts

25 not less than $100 and not more than
131

•S 2514 IS

1 $10,000 to persons who would not other2 wise qualify for a commercial loan.

3 ‘‘(v) The lender provides technical as4 sistance, training, and counseling in busi5 ness practices, such as accounting, market6 ing, management, financial practices, and

7 general business practices and sales, to the

8 microenterprise in connection with the loan

9 and closely monitors the microenterprise,

10 including the enterprise’s loan repayment

11 performance.

12 ‘‘(B) LENDER DEFINED.—For purposes of

13 subparagraph (A), the term ‘lender’ means—

14 ‘‘(i) in the case of a microenterprise

15 loan by a savings association to a

16 microenterprise, the savings association;

17 and

18 ‘‘(ii) in the case of a microenterprise

19 loan by a microenterprise intermediary to

20 a microenterprise, the microenterprise

21 intermediary.’’.
132

•S 2514 IS

1 SEC. 216. USE OF CDBG ASSISTANCE FOR ADMINISTRATIVE

2 COSTS OF ENTITIES ASSISTING

3 MICROENTERPRISES.

4 Section 105(a)(23) of the Housing and Community

5 Development Act of 1974 (42 U.S.C. 5305(a)(23)) is

6 amended by adding at the end the following flush material:

7 ‘‘assistance provided to such entities under this

8 paragraph may be used for reasonable administra9 tive and operating costs of such entities related to

10 facilitating economic development through activities

11 under subparagraphs (A) through (C);’’.

12 SEC. 217. ESTABLISHMENT OF MICROENTERPRISE DIVI13 SION IN EACH FEDERAL BANKING AGENCY.

14 (a) IN GENERAL.—Each Federal banking agency (as

15 defined in section 3(z) of the Federal Deposit Insurance

16 Act) shall establish a division to be known as the

17 ‘‘Microenterprise Technical and Operations Office’’ to pro18 mote microenterprises by offering technical assistance,

19 training, outreach, and other support to groups and indi20 viduals engaged in, or desiring to establish, a

21 microenterprise or an institution which offers credit or fi22 nancial services to microenterprises.

23 (b) DUTIES OF MICROENTERPRISE DIVISION.—The

24 Microenterprise Technical and Operations Office of each

25 Federal banking agency shall—
133

•S 2514 IS

1 (1) facilitate the creation and financing of

2 microenterprises by—

3 (A) collecting information relating to

4 microenterprises, including the ownership char5 acteristics of microenterprises and the perform6 ance of microenterprises by industry;

7 (B) providing such information without

8 charge to interested persons; and

9 (C) generally serving as a clearinghouse

10 for information relating to microenterprises;

11 and

12 (2) monitor and provide assistance to the

13 microenterprise divisions established pursuant to

14 section 34 of the Federal Deposit Insurance Act.

15 (c) MICROENTERPRISE DEFINED.—As used in this

16 section, the term ‘‘microenterprise’’ means any commer17 cial enterprise with 5 or fewer employees, 1 or more of

18 whom own the enterprise.

19 SEC. 218. STUDY.

20 (a) AVAILABILITY OF CREDIT FOR SMALL BUSI21 NESSES WHICH ARE LARGER THAN

22 MICROENTERPRISES.—The Financial Institutions Exam23 ination Council shall conduct a study before the end of

24 the 2-year period beginning on the date of the enactment

25 of this Act, based on the agency’s experience in admin-
134

•S 2514 IS

1 istering the microenterprise loan provisions of this Act,

2 and the amendments made by this Act, on the best means

3 to make credit available for small businesses which—

4 (1) do not qualify for microenterprise loans or

5 need credit in larger amounts than is available

6 through microenterprise loans; and

7 (2) need credit in smaller amounts than is gen8 erally available from financial institutions or the

9 Small Business Administration.

10 (b) RECOMMENDATIONS AND REPORT.—The Finan11 cial Institutions Examination Council shall submit a re12 port to the Congress before the end of the 2-year period

13 referred to in subsection (a) containing the findings and

14 conclusions of the agency in connection with the study

15 conducted pursuant to subsection (a) and such rec16 ommendations for legislative and administrative action as

17 the agency may determine to be appropriate.

18 Subtitle C—Equal Surety Bond

19 Opportunity Act

20 SEC. 221. SHORT TITLE.

21 This subtitle may be cited as the ‘‘Equal Surety Bond

22 Opportunity Act’’.
135

•S 2514 IS

1 SEC. 222. EQUAL SURETY BOND OPPORTUNITY REQUIRE2 MENTS.

3 (a) ACTIVITIES CONSTITUTING DISCRIMINATION.—It

4 shall be unlawful for any surety to discriminate against

5 any applicant, with respect to any aspect of a surety bond

6 transaction—

7 (1) on the basis of race, color, religion, national

8 origin, sex, marital status, sexual orientation, dis9 ability, or age (if the applicant has the capacity to

10 contract);

11 (2) because the applicant has in good faith ex12 ercised any right under this Act;

13 (3) because the applicant previously obtained a

14 bond through an individual or personal surety; or

15 (4) because the applicant previously obtained a

16 bond through—

17 (A) any bonding assistance program ex18 pressly authorized by law;

19 (B) any bonding assistance program ad20 ministered by a nonprofit organization for its

21 members or an economically disadvantaged

22 class of persons; or

23 (C) any special purpose bonding program

24 offered by a profit-making organization to meet

25 special needs.
136

•S 2514 IS

1 (b) ACTIVITIES NOT CONSTITUTING DISCRIMINA2 TION.—It shall not constitute discrimination for purposes

3 of this Act for a surety—

4 (1) to make an inquiry of marital status if such

5 inquiry is for the purpose of ascertaining the sure6 ty’s rights and remedies applicable to the granting

7 of a bond and not to discriminate in a determination

8 of bondability;

9 (2) to make an inquiry of the applicant’s age if

10 such inquiry is for the purpose of determining the

11 amount and probable continuance of bondability; or

12 (3) to make an inquiry as to where the appli13 cant has previously obtained a bond, in order to de14 termine bonding history, or other pertinent element

15 of bondability, except that an applicant may not be

16 assigned a negative factor or value because the ap17 plicant previously obtained a bond through—

18 (A) an individual or personal surety;

19 (B) a bonding assistance program ex20 pressly authorized by law;

21 (C) any bonding program administered by

22 a nonprofit organization for its members or an

23 economically disadvantaged class of persons; or
137

•S 2514 IS

1 (D) any special purpose bonding program

2 offered by a profit-making organization to meet

3 special needs.

4 (c) ADDITIONAL ACTIVITIES NOT CONSTITUTING

5 DISCRIMINATION.—It is not a violation of this Act for a

6 surety to refuse to issue a bond pursuant to—

7 (1) any bonding assistance program authorized

8 by law for an economically disadvantaged class of

9 persons;

10 (2) any bonding assistance program adminis11 tered by a nonprofit organization for its members or

12 an economically disadvantaged class of persons; or

13 (3) any special purpose bonding program of14 fered by a profit-making organization to meet special

15 needs;

16 if such refusal is required by or made pursuant to such

17 program.

18 (d) REASONS FOR ADVERSE ACTION; PROCEDURE

19 APPLICABLE; DEFINITION.—

20 (1) NOTICE REQUIRED.—

21 (A) IN GENERAL.—Except as provided in

22 subparagraph (B), any surety approved under

23 section 9304 of title 31, United States Code,

24 shall notify an applicant of the surety’s action

25 on a completed application before the end of the
138

•S 2514 IS

1 10-day period beginning on the date the appli2 cation is filed with the surety.

3 (B) EXTENSION.—The 10-day period re4 ferred to in subparagraph (A) may be extended

5 an additional 10 days if the surety has not is6 sued a bond to the applicant during the 1-year

7 period ending on the date the application is

8 filed with the surety.

9 (2) STATEMENT OF REASONS.—

10 (A) IN GENERAL.—Each applicant against

11 whom adverse action is taken shall be entitled

12 to a statement of reasons for such action from

13 the surety.

14 (B) ACCEPTABLE FORMS OF STATE15 MENT.—A surety satisfies the requirement es16 tablished under subparagraph (A) by—

17 (i) providing a statement of reasons in

18 writing as a matter of course to applicants

19 against whom adverse action is taken; or

20 (ii) giving written notification of ad21 verse action which discloses—

22 (I) the applicant’s right to a

23 statement of reasons within 30 days

24 after receipt by the surety of a re-
139

•S 2514 IS

1 quest made within 60 days after such

2 notification; and

3 (II) the identity of the person or

4 office from which such statement may

5 be obtained.

6 (C) ORAL STATEMENT PERMITTED.—Such

7 statement may be given orally if the written no8 tification advises the applicant of the appli9 cant’s right to have the statement of reasons

10 confirmed in writing on written request.

11 (3) SPECIFICITY OF REASONS.—A statement of

12 reasons meets the requirements of this Act only if

13 it contains specific reasons for the adverse action

14 taken.

15 (4) APPLICABILITY IN CASE OF 3D PARTY AP16 PLICATIONS.—In the case of a request to a surety

17 by a third party to issue a bond directly or indirectly

18 to an applicant, the notification and statement of

19 reasons required by this section may be made di20 rectly by such surety, or indirectly through the third

21 party, if the identity of the surety is disclosed to the

22 applicant.

23 (5) APPLICABILITY IN CASE OF SURETIES

24 WHICH ACCEPT FEW APPLICATIONS.—The require25 ments of paragraph (2), (3), or (4) may be satisfied
140

•S 2514 IS

1 by oral statements or notifications in the case of any

2 surety who did not act on more than 100 applica3 tions during the calendar year in which the adverse

4 action is taken.

5 (e) ADVERSE ACTION DEFINED.—For purposes of

6 this Act, the term ‘‘adverse action’’—

7 (1) means a denial of a bond, a change in the

8 terms of an existing bonding arrangement, or a re9 fusal to issue a bond in the amount or on substan10 tially the terms requested; and

11 (2) does not include any refusal to issue an ad12 ditional bond under an existing bonding arrange13 ment where the applicant is in default, or where

14 such additional bond would exceed a previously es15 tablished bonding limit.

16 SEC. 223. CIVIL LIABILITY.

17 (a) DAMAGES.—Any surety who fails to comply with

18 section 222(a) shall be liable to the aggrieved applicant

19 for—

20 (1) any actual damage sustained by such appli21 cant (individually or as a member of a class); and

22 (2) in the case of any successful action under

23 this section, the costs of the action, together with

24 reasonable attorney’s fees as determined by the

25 court.
141

•S 2514 IS

1 (b) EQUITABLE RELIEF.—Upon application by an

2 aggrieved applicant, a court of competent jurisdiction may

3 enjoin a surety from violating the requirements of this Act

4 or grant such other equitable relief as the court deter5 mines to be appropriate to enforce such requirements.

6 (c) JURISDICTION.—Any action under this section

7 may be brought in any United States district court, or

8 in any other court of competent jurisdiction, within 1 year

9 after the date of the occurrence of the violation involved.

10 SEC. 224. ADMINISTRATIVE ENFORCEMENT.

11 (a) IN GENERAL.—A company may not be approved

12 as a surety by the Secretary of the Treasury under section

13 9304 of title 31, United States Code, or provide any surety

14 bond pursuant to such section unless such company main15 tains full compliance with the requirements of this Act.

16 (b) REQUIREMENTS RELATING TO ENFORCEABILITY

17 OF ACT.—

18 (1) SIGNED STATEMENT OF COMPLIANCE WITH

19 APPLICATION.—Section 9305(a) of title 31, United

20 States Code, is amended—

21 (A) by striking ‘‘and’’ at the end of para22 graph (1);

23 (B) by striking the period at the end of

24 paragraph (2) and inserting ‘‘; and’’; and
142

•S 2514 IS

1 (C) by adding at the end the following new

2 paragraph:

3 ‘‘(3) a statement of compliance with the Equal

4 Surety Bond Opportunity Act which is signed under

5 penalty of perjury by the president and the secretary

6 of the corporation.’’.

7 (2) COMPLIANCE AS A CONDITION FOR AP8 PROVAL OF APPLICATION.—Section 9305(b) of title

9 31, United States Code, is amended—

10 (A) by striking ‘‘and’’ at the end of para11 graph (2);

12 (B) by striking the period at the end of

13 paragraph (3) and inserting ‘‘; and’’; and

14 (C) by adding at the end the following new

15 paragraph:

16 ‘‘(4) the corporation is in full compliance with

17 the Equal Surety Bond Opportunity Act.’’.

18 (3) SIGNED STATEMENT OF COMPLIANCE WITH

19 QUARTERLY REPORTS.—Section 9305(c) of title 31,

20 United States Code, is amended by inserting ‘‘and a

21 statement of compliance with the Equal Surety

22 Bond Opportunity Act’’ before the period.

23 (4) ENFORCEMENT AUTHORITY OF SECRETARY

24 OF THE TREASURY.—Section 9305(d) of title 31,

25 United States Code, is amended—
143

•S 2514 IS

1 (A) in paragraph (1), by inserting ‘‘or the

2 provisions of the Equal Surety Bond Oppor3 tunity Act’’ before the semicolon;

4 (B) by striking ‘‘and’’ at the end of para5 graph (2);

6 (C) by striking the period at the end of

7 paragraph (3) and inserting ‘‘; and’’; and

8 (D) by adding at the end the following new

9 paragraph:

10 ‘‘(4) may, after the end of the 1-year period be11 ginning on the effective date of any revocation under

12 paragraph (1) of the authority of a surety corpora13 tion for noncompliance with the Equal Surety Bond

14 Opportunity Act, reauthorize such corporation to

15 provide surety bonds under section 9304.’’.

16 (5) REVOCATION FOR FAILURE TO PAY CER17 TAIN JUDGMENTS.—Section 9305(e) of title 31,

18 United States Code, is amended—

19 (A) by striking ‘‘and’’ at the end of para20 graph (1);

21 (B) by redesignating paragraph (2) as

22 paragraph (3); and

23 (C) by inserting after paragraph (1) the

24 following new paragraph:
144

•S 2514 IS

1 ‘‘(2) the corporation does not pay a final judg2 ment or order against the corporation for noncompli3 ance with the Equal Surety Bond Opportunity Act

4 or fails to comply with any order under section 3(c)

5 of such Act;’’.

6 (c) TECHNICAL AND CONFORMING AMENDMENT.—

7 Section 9304(a)(3) of title 31, United States Code, is

8 amended by inserting ‘‘and section 4(a) of the Equal Sur9 ety Bond Opportunity Act’’ before the period.

10 (d) REGULATIONS.—

11 (1) IN GENERAL.—The Secretary of the Treas12 ury shall prescribe such regulations as may be nec13 essary to carry out the purposes of this Act.

14 (2) INITIAL REGULATIONS.—The initial regula15 tions prescribed pursuant to paragraph (1) shall

16 take effect at the earliest practicable date after the

17 date of the enactment of this Act and not later than

18 the end of the 1-year period beginning on such date

19 of enactment.

20 SEC. 225. EFFECTIVE DATE.

21 Sections 222(d) and 224(a) shall take effect on the

22 earlier of—

23 (1) the effective date of the initial regulations

24 prescribed pursuant to section 224(d); or
145

•S 2514 IS

1 (2) the end of the 1-year period beginning on

2 the date of the enactment of this Act.

3 Subtitle D—Women and Minorities

4 in Science and Engineering

5 Work Force Act

6 SEC. 231. SHORT TITLE.

7 This subtitle may be cited as the ‘‘Women and Mi8 norities in Science and Engineering Work Force Act’’.

9 SEC. 232. FINDINGS.

10 The Congress finds that—

11 (1) despite a consistently high presence of

12 women in the professional and total work forces of

13 the United States, women continue to be

14 underrepresented in the science and engineering

15 work forces;

16 (2) women scientists and engineers have higher

17 rates of unemployment and underemployment than

18 their male counterparts, although the number of

19 women receiving degrees in scientific and engineer20 ing disciplines has increased since 1981;

21 (3) artificial barriers exist in the recruitment,

22 retention, and advancement of women in the science

23 and engineering work forces;

24 (4) academia, industry, and government are in25 creasingly aware of the necessity of and the advan-
146

•S 2514 IS

1 tages derived from diverse science and engineering

2 work forces;

3 (5) initiatives of the White House Task Force

4 on Women, Minorities, and the Handicapped in

5 Science and Technology and of the Federal Coordi6 nating Council on Science, Engineering, and Tech7 nology have been instrumental in raising public

8 awareness of—

9 (A) the underrepresentation of women in

10 the science and engineering work forces; and

11 (B) the desirability of eliminating artificial

12 barriers to the recruitment, retention, and ad13 vancement of women in such work forces; and

14 (6) the establishment of a commission to exam15 ine issues raised by these initiatives would help to—

16 (A) focus greater attention on the impor17 tance of eliminating artificial barriers to the re18 cruitment, retention, and advancement of

19 women in the science and engineering work

20 forces and in all employment sectors of the

21 United States;

22 (B) promote work force diversity;

23 (C) sensitize employers to the need to re24 cruit and retain women scientists and engineers

25 in order to overcome projected shortfalls within
147

•S 2514 IS

1 the science and engineering work forces of the

2 United States during the next 20 years; and

3 (D) encourage the replication of successful

4 recruitment and retention programs by univer5 sities, corporations, and Federal agencies hav6 ing difficulties in employing women scientists

7 and engineers.

8 SEC. 233. ESTABLISHMENT.

9 There is established a commission to be known as the

10 ‘‘Commission on the Advancement of Women in the

11 Science and Engineering Work Forces’’ (hereinafter in

12 this Act referred to as the ‘‘Commission’’).

13 SEC. 234. DUTY OF COMMISSION.

14 The Commission shall conduct a study to—

15 (1) identify the number of women in the United

16 States in the science and engineering work forces,

17 the specific types of occupations in such workforces

18 in which women scientists and engineers are

19 underrepresented;

20 (2) examine the preparedness of women to—

21 (A) pursue careers in the science and engi22 neering work forces; and

23 (B) advance to positions of greater respon24 sibility within academia, industry, and govern25 ment;
148

•S 2514 IS

1 (3) describe the practices and policies of em2 ployers and labor unions relating to the recruitment,

3 retention, and advancement of women scientists and

4 engineers;

5 (4) identify the opportunities for, and artificial

6 barriers to, the recruitment, retention, and advance7 ment of women scientists and engineers in academia,

8 industry, and government;

9 (5) describe the employment situations in which

10 the recruitment, retention, and advancement of

11 women scientists and engineers are comparable to

12 their male counterparts, and identify those situa13 tions in which such comparability does not exist;

14 (6) compile a synthesis of available research on

15 practices, policies, and programs that have success16 fully led to the recruitment, retention, and advance17 ment of women in the science and engineering work

18 forces, including training programs, rotational as19 signments, developmental programs, reward pro20 grams, employee benefit structures, and family leave

21 policies;

22 (7) examine such other issues and information

23 relating to the advancement of women in the science

24 and engineering work forces as determined by the

25 Commission to be appropriate; and
149

•S 2514 IS

1 (8) issue recommendations that government (in2 cluding Congress and appropriate Federal agencies),

3 academia, and private industry can follow to assist

4 in the recruitment, retention, and advancement of

5 women in science and engineering.

6 SEC. 235. MEMBERSHIP.

7 (a) NUMBER AND APPOINTMENT.—The Commission

8 shall be composed of 17 members as follows:

9 (1) 5 members appointed by the President.

10 (2) 3 members appointed jointly by the Speaker

11 of the House of Representatives and the majority

12 leader of the Senate.

13 (3) 1 member appointed by the majority leader

14 of the House of Representatives.

15 (4) 1 member appointed by the minority leader

16 of the House of Representatives.

17 (5) 1 member appointed by the majority leader

18 of the Senate.

19 (6) 1 member appointed by the minority leader

20 of the Senate.

21 (7) 2 Members of the House of Representatives,

22 appointed jointly by the majority leader and the mi23 nority leader of the House of Representatives.

24 (8) 2 Senators appointed jointly by the majority

25 leader and the minority leader of the Senate.
150

•S 2514 IS

1 (9) The Director of the Office of Science and

2 Technology Policy.

3 (b) ADDITIONAL QUALIFICATIONS.—Initial appoint4 ments shall be made under subsection (a) not later than

5 180 days after the date of the enactment of this Act. In

6 making each appointment under subsection (a), the ap7 pointing authority shall consider (among other factors)

8 whether the individual—

9 (1) is a member of an organization representing

10 women and minorities;

11 (2) holds executive management or senior deci12 sion-making positions in any business entity; and

13 (3) possesses academic expertise or other recog14 nized abilities relating to employment and employ15 ment discrimination issues.

(c) POLITICAL AFFILIATION.—Not more than 1 16 ⁄2 of

17 the members appointed from individuals who are officers

18 or employees of the United States may be of the same

19 political party.

20 (d) CONTINUATION OF MEMBERSHIP.—If a member

21 was appointed to the Commission because the member was

22 an officer or employee of any government and later ceases

23 to be such an officer or employee, that member may con24 tinue as a member of the Commission for not longer than
151

•S 2514 IS

1 the 60-day period beginning on the date the member

2 ceases to be such an officer or employee.

3 (e) TERMS.—

4 (1) IN GENERAL.—Each Member shall be ap5 pointed for the life of the Commission.

6 (2) VACANCIES.—A vacancy in the Commission

7 shall be filled in the manner in which the original

8 appointment was made.

9 (f) BASIC PAY.—

10 (1) RATES OF PAY.—Except as provided in

11 paragraph (2), each member of the Commission

12 shall receive compensation at the daily equivalent of

13 the maximum rate of pay payable under section

14 5376 of title 5, United States Code, for each day the

15 member is engaged in the performance of duties for

16 the Commission, including attendance at meetings

17 and conferences of the Commission, and travel to

18 conduct the duties of the Commission.

19 (2) PROHIBITION OF COMPENSATION OF FED20 ERAL EMPLOYEES.—Members of the Commission

21 who are full-time officers or employees of the United

22 States or Members of Congress may not receive ad23 ditional pay, allowances, or benefits by reason of

24 their service on the Commission.
152

•S 2514 IS

1 (g) TRAVEL EXPENSES.—Each member shall receive

2 travel expenses, including per diem in lieu of subsistence,

3 in accordance with sections 5702 and 5703 of title 5,

4 United States Code.

5 (h) QUORUM.—A majority of the members of the

6 Commission shall constitute a quorum for the transaction

7 of business.

8 (i) CHAIRPERSON.—The Director of the Office of

9 Science and Technology Policy shall serve as the Chair10 person of the Commission.

11 (j) MEETINGS.—

12 (1) MEETINGS PRIOR TO COMPLETION OF RE13 PORT.—The Commission shall meet not fewer than

14 5 times in connection with and pending the comple15 tion of the reports described in subsections (a) and

16 (b) of section 228. The Commission shall hold addi17 tional meetings for such purpose if the Chairperson

18 or a majority of the members of the Commission re19 quests the additional meetings in writing.

20 (2) MEETINGS AFTER COMPLETION OF RE21 PORT.—The Commission shall meet at least once,

22 but not more than twice after the completion of the

23 report described in section 228(b), in connection

24 with and pending completion of the report required

25 by section 228(c).
153

•S 2514 IS

1 (k) EMPLOYMENT STATUS.—A member of the Com2 mission, who is not otherwise an officer or employee of

3 the Federal Government, shall not be deemed to be an

4 employee of the Federal Government except for the pur5 poses of—

6 (1) the tort claims provisions of chapter 171 of

7 title 28, United States Code; and

8 (2) subchapter I of chapter 81 of title 5, United

9 States Code, relating to compensation for work

10 injuries.

11 SEC. 236. DIRECTOR AND STAFF OF COMMISSION; EXPERTS

12 AND CONSULTANTS.

13 (a) DIRECTOR.—The Commission shall have a Direc14 tor who shall be appointed by the Chairperson. The Direc15 tor shall be paid at a rate not to exceed the maximum

16 annual rate of basic pay payable under section 5376 of

17 title 5, United States Code.

18 (b) STAFF.—Subject to rules prescribed by the Com19 mission, the Chairperson may appoint and fix the pay of

20 additional personnel as the Chairperson considers appro21 priate.

22 (c) APPLICABILITY OF CERTAIN CIVIL SERVICE

23 LAWS.—The Director and staff of the Commission may

24 be appointed without regard to the provisions of title 5,

25 United States Code, governing appointments in the com-
154

•S 2514 IS

1 petitive service, and may be paid without regard to the

2 provisions of chapter 51 and subchapter III of chapter 53

3 of that title relating to classification and General Schedule

4 pay rates, except that an individual so appointed may not

5 receive pay in excess of the maximum annual rate of basic

6 pay payable under section 5376 of title 5, United States

7 Code.

8 (d) EXPERTS AND CONSULTANTS.—The Commission

9 may procure temporary and intermittent services under

10 section 3109(b) of title 5, United States Code, at rates

11 for individuals not to exceed the maximum annual rate

12 of basic pay payable under section 5376 of title 5, United

13 States Code.

14 (e) STAFF OF FEDERAL AGENCIES.—Upon request

15 of the Commission, the head of any Federal department

16 or agency may detail, on a reimbursable basis, any of the

17 personnel of that department or agency to the Commission

18 to assist it in carrying out its duties under this Act.

19 SEC. 237. POWERS OF COMMISSION.

20 (a) HEARINGS AND SESSIONS.—The Commission

21 may, for the purpose of carrying out this Act, hold hear22 ings, sit and act at times and places, take testimony, and

23 receive evidence as the Commission considers appropriate.

24 The Commission may administer oaths or affirmations to

25 witnesses appearing before it.
155

•S 2514 IS

1 (b) POWERS OF MEMBERS AND AGENTS.—Any mem2 ber or agent of the Commission may, if authorized by the

3 Commission, take any action which the Commission is au4 thorized to take by this section.

5 (c) OBTAINING OFFICIAL DATA.—The Commission

6 may secure directly from any department or agency of the

7 United States information necessary to enable it to carry

8 out this Act. Upon request of the Chairperson of the Com9 mission, the head of that department or agency shall fur10 nish that information to the Commission.

11 (d) GIFTS, BEQUESTS, AND DEVISES.—The Commis12 sion may accept, use, and dispose of gifts, bequests, or

13 devises of services or property, both real and personal, for

14 the purpose of aiding or facilitating the work of the Com15 mission. Gifts, bequests, or devises of money and proceeds

16 from sales of other property received as gifts, bequests,

17 or devises shall be deposited in the Treasury and shall be

18 available for disbursement upon order of the Commission.

19 (e) MAILS.—The Commission may use the United

20 States mails in the same manner and under the same con21 ditions as other departments and agencies of the United

22 States.

23 (f) ADMINISTRATIVE SUPPORT SERVICES.—Upon the

24 request of the Commission, the Administrator of General

25 Services shall provide to the Commission, on a reimburs-
156

•S 2514 IS

1 able basis, the administrative support services necessary

2 for the Commission to carry out its responsibilities under

3 this Act.

4 (g) CONTRACT AUTHORITY.—To the extent provided

5 in advance in appropriations Acts, the Commission may

6 contract with and compensate government and private

7 agencies or persons for the purpose of conducting research

8 or surveys necessary to enable the Commission to carry

9 out its duties under this Act.

10 SEC. 238. REPORTS.

11 (a) STATUS REPORT.—Not later than 1 year after

12 the date on which the initial appointments under section

13 235(a) are completed, the Commission shall submit to the

14 President and the Congress a written report describing the

15 current activities and findings of the Commission and the

16 direction of the Commission.

17 (b) RECOMMENDATION REPORT.—Not later than 18

18 months after the date on which the initial appointments

19 under section 235(a) are completed, the Commission shall

20 submit to the President and the Congress a written report

21 containing—

22 (1) the findings and conclusions of the Commis23 sion resulting from the study conducted under sec24 tion 234; and
157

•S 2514 IS

1 (2) recommendations, including specific pro2 posed legislation and administrative action, based on

3 the findings and conclusions referred to in para4 graph (1).

5 (c) FOLLOW-UP REPORT.—After submission of the

6 report required by subsection (b) and before the termi7 nation of the Commission, the Commission shall submit

8 to the President and to the Congress a written report—

9 (1) identifying which of the recommendations

10 included in such report have been implemented; and

11 (2) containing any additional information the

12 Commission considers to be appropriate.

13 SEC. 239. TERMINATION.

14 The Commission shall terminate 1 year after submit15 ting the report required by section 238(b).

16 SEC. 239A. AUTHORIZATION OF APPROPRIATIONS.

17 There are authorized to be appropriated for fiscal

18 years 1995, 1996, and 1997 such sums as may be nec19 essary to carry out this Act.

20 Subtitle E—Job Training Self21 Sufficiency Act

22 SEC. 241. SHORT TITLE.

23 This subtitle may be cited as the ‘‘Self-Sufficiency

24 Standard Act’’.
158

•S 2514 IS

1 SEC. 242. FINDINGS AND PURPOSE.

2 (a) FINDINGS.—The Congress finds that—

3 (1) the principle objective of programs under

4 part A of title II of the Job Training Partnership

5 Act (29 U.S.C. 1601 et seq.) is to move economically

6 disadvantaged adults into permanent, unsubsidized

7 employment that pays a wage that enables such

8 adults to achieve long-term economic self-sufficiency

9 for themselves and their dependents;

10 (2) current measures of success of such pro11 grams do not accurately assess the degree to which

12 participants achieve long-term economic self-suffi13 ciency;

14 (3) in order to ensure that such programs re15 sult in long-term economic self-sufficiency for par16 ticipants, performance standards must focus both on

17 the wage and benefits a participant receives relative

18 to the participant’s family size and needs, and on

19 the duration and stability of the participant’s em20 ployment; and

21 (4) the wage and benefits needed to achieve

22 long-term economic self-sufficiency will vary by fam23 ily size and local market conditions governing prices

24 of essential goods and services.

25 (b) PURPOSES.—The purposes of this Act are—
159

•S 2514 IS

1 (1) to provide for the establishment and use of

2 local economic self-sufficiency standards tables to ac3 curately measure the effectiveness of adult training

4 programs carried out under part A of title II of the

5 Job Training Partnership Act (29 U.S.C. 1601 et

6 seq.); and

7 (2) to provide grants to States to develop dem8 onstration and exemplary programs to increase the

9 number of participants under such programs who

10 are trained and placed in jobs that yield long-term

11 economic self-sufficiency using the local economic

12 self-sufficiency standards tables.

13 SEC. 243. DEFINITION OF ECONOMIC SELF-SUFFICIENCY.

14 Section 4 of the Job Training Partnership Act (29

15 U.S.C. 1503) is amended by adding at the end the follow16 ing new paragraph:

17 ‘‘(41) The term ‘economic self-sufficiency’

18 means the ability of an individual to meet the follow19 ing basic needs for the individual and such individ20 ual’s family:

21 ‘‘(A) Housing.

22 ‘‘(B) Child care.

23 ‘‘(C) Adult dependent care.

24 ‘‘(D) Food.

25 ‘‘(E) Transportation.
160

•S 2514 IS

1 ‘‘(F) Health care.

2 ‘‘(G) Work-related expenses.’’.

3 SEC. 244. ESTABLISHMENT OF ECONOMIC SELF-SUFFI4 CIENCY STANDARDS FOR ADULT TRAINING

5 PROGRAMS.

6 (a) IN GENERAL.—Section 106(b) of such Act (29

7 U.S.C. 1516(b)) is amended by adding at the end the fol8 lowing new paragraph:

9 ‘‘(9) ECONOMIC SELF-SUFFICIENCY STANDARDS

10 FOR ADULT PROGRAMS.—

11 ‘‘(A) FORMULA DEVELOPED BY THE SEC12 RETARY.—(i)(I) Not later than 6 months after

13 the date of the enactment of this paragraph,

14 the Secretary shall develop and publish in the

15 Federal Register a proposed formula which

16 measures the minimum amount of wages and

17 employment benefits that a participant enrolled

18 in a program under part A of title II should re19 ceive after termination from such program to

20 ensure the long-term economic self-sufficiency

21 of such participant.

22 ‘‘(II) The Secretary shall provide for public

23 review and comment of the proposed formula

24 described in subclause (I) within the 60-day pe25 riod beginning on the date such formula is pub-
161

•S 2514 IS

1 lished in the Federal Register. Not later than

2 4 months after the end of such 60-day period,

3 the Secretary shall develop and publish in the

4 Federal Register a final formula.

5 ‘‘(ii) The Secretary shall base the formula

6 described in clause (i) on appropriate factors,

7 which shall include—

8 ‘‘(I) the participant’s family size and

9 composition, including the number and age

10 of dependent adults and children;

11 ‘‘(II) 100 percent of the average hous12 ing costs, which shall be based on the fair

13 market rental in effect for the market area

14 in which the participant resides, as estab15 lished by the Secretary of Housing and

16 Urban Development pursuant to section

17 8(c) of the United States Housing Act of

18 1937;

19 ‘‘(III) 100 percent of the average

20 child care costs (differentiated by the age

21 of each child), which may be based on the

22 actual cost of such care established under

23 section 402(g)(1)(C)(i)(I) the Social Secu24 rity Act or the applicable local market rate
162

•S 2514 IS

1 established under clause (ii) of such sec2 tion;

3 ‘‘(IV) 100 percent of the average

4 adult dependent care costs, which may be

5 based on local surveys or the local average

6 of such costs;

7 ‘‘(V) 100 percent of the average

8 health care costs, which shall include costs

9 incurred for full family health care cov10 erage (including premiums, deductibles,

11 and co-payments), and which may be based

12 on local surveys or the local average of

13 such costs;

14 ‘‘(VI) 100 percent of the average

15 transportation costs, which may be based

16 on local surveys or the local average of

17 such costs;

18 ‘‘(VII) 100 percent of the food costs,

which shall be equal to 1 19 ⁄3 of the official

20 poverty line (as defined by the Office of

21 Management and Budget, and revised an22 nually in accordance with section 673(2) of

23 the Omnibus Budget Reconciliation Act of

24 1981 (42 U.S.C. 9902(2)); and
163

•S 2514 IS

1 ‘‘(VIII) 100 percent of the average

2 work-related costs, which shall include the

3 cost of uniforms, tools, and other appro4 priate work-related costs.

5 ‘‘(iii) The Secretary shall also designate,

6 from among the needs identified through the

7 needs assessment conducted under this Act,

8 those needs which shall be used by a service de9 livery area to develop the summary needs table

10 under section 104(b)(14)(B).

11 ‘‘(B) LOCAL ECONOMIC SELF-SUFFICIENCY

12 STANDARDS TABLES DEVELOPED BY SERVICE

13 DELIVERY AREAS.—(i) Not later than 12

14 months after the date on which the Secretary

15 publishes the final formula in the Federal Reg16 ister under subparagraph (A)(i)(II), each serv17 ice delivery area shall, in accordance with such

18 formula, develop and submit to the Governor a

19 local economic self-sufficiency standards table

20 which measures the minimum amount of wages

21 and employment benefits that a participant en22 rolled in a program under part A of title II in

23 such area should receive after termination from

24 such program to ensure the long-term economic

25 self-sufficiency of such participant.
164

•S 2514 IS

1 ‘‘(ii) The Secretary shall provide technical

2 assistance to States and service delivery areas

3 for the purpose of assisting such service deliv4 ery areas to develop the local economic self-suf5 ficiency standards tables under clause (i).

6 ‘‘(C) APPROVAL AND DISAPPROVAL OF

7 TABLE.—(i) Not later than 30 days after the

8 date on which the Governor receives a local eco9 nomic self-sufficiency standards table submitted

10 by a service delivery area under subparagraph

11 (B)(i), the Governor shall review such table and

12 approve or disapprove such table in accordance

13 with this subparagraph.

14 ‘‘(ii) The Governor shall approve each local

15 economic self-sufficiency standards table only

16 if—

17 ‘‘(I) such table accounts for the full

18 range of variations of family size and com19 position described in subclause (I) of sub20 paragraph (A)(ii);

21 ‘‘(II) such table accounts for 100 per22 cent of each of the costs described in

23 subclauses (II) through (VIII) of subpara24 graph (A)(ii);
165

•S 2514 IS

1 ‘‘(III) the methodology used to deter2 mine such costs accurately represent such

3 costs; and

4 ‘‘(IV) such table complies with all

5 other provisions of the formula developed

6 by the Secretary under subparagraph (A).

7 ‘‘(iii) If the Governor determines that the

8 table does not meet the requirements of clause

9 (ii) or is otherwise incomplete or unsatisfactory,

10 the Governor shall, before the end of the period

11 referred to in clause (i)—

12 ‘‘(I) notify the service delivery area of

13 the reasons for the failure to approve the

14 table;

15 ‘‘(II) notify the service delivery area

16 that the table may be resubmitted during

17 the period referred to in subclause (III);

18 and

19 ‘‘(III) permit the service delivery area

20 to resubmit a corrected or amended table

21 during the 30-day period beginning on no22 tification under this clause.

23 ‘‘(iv) The Governor shall review and ap24 prove or disapprove any table resubmitted

25 under clause (iii) beginning before the expira-
166

•S 2514 IS

1 tion of the 30-day period beginning upon such

2 resubmission.

3 ‘‘(D) ANNUAL UPDATES.—Each service de4 livery area shall update the local economic self5 sufficiency standards table developed by such

6 area on an annual basis and shall submit to the

7 Governor a description of the updated version

8 of such table.’’.

9 (b) CONFORMING AMENDMENT.—Paragraph (3) of

10 section 106(b) of such Act (29 U.S.C. 1516(b)(3)) is

11 amended by striking ‘‘The Secretary’’ and inserting ‘‘In

12 addition to the standards under local economic self-suffi13 ciency standards tables developed pursuant to paragraph

14 (9), the Secretary’’.

15 SEC. 245. PROHIBITION OF INCENTIVE GRANTS TO SERV16 ICE DELIVERY AREAS THAT DO NOT HAVE IN

17 EFFECT AN APPROVED LOCAL ECONOMIC

18 SELF-SUFFICIENCY STANDARDS TABLE.

19 (a) IN GENERAL.—Paragraph (7) of section 106(b)

20 of such Act (29 U.S.C. 1516(b)(7)) is amended—

21 (1) by striking ‘‘From funds available’’ and in22 serting ‘‘(A) Subject to subparagraph (B), from

23 funds available’’;
167

•S 2514 IS

1 (2) by redesignating clauses (i) and (ii) of sub2 paragraph (D) as subclauses (I) and (II), respec3 tively;

4 (3) by redesignating subparagraphs (A) through

5 (E) of such paragraph as clauses (i) through (v), re6 spectively; and

7 (4) by adding at the end the following new sub8 paragraph:

9 ‘‘(B) A Governor shall not award incentive

10 grants for programs under part A of title II to serv11 ice delivery areas that do not have in effect a local

12 economic self-sufficiency standards table approved

13 under paragraph (9)(C).

14 (b) EFFECTIVE DATE.—The amendments made by

15 subsection (a) shall take effect 2 years after the date of

16 the enactment of this Act.

17 SEC. 246. INCLUSION OF LOCAL ECONOMIC SELF-SUFFI18 CIENCY STANDARDS TABLE AND RELATED

19 REPORTS IN JOB TRAINING PLAN.

20 (a) LOCAL ECONOMIC SELF-SUFFICIENCY STAND21 ARDS TABLE.—Subparagraph (B) of section 104(b)(5) of

22 such Act (29 U.S.C. 1514(b)(5)(B)) is amended by insert23 ing ‘‘, including the local economic self-sufficiency stand24 ards table developed pursuant to subsection (b)(9) of such

25 section’’ after ‘‘section 106’’.
168

•S 2514 IS

1 (b) ANNUAL REPORTS.—Subsection (b) of section

2 104 of such Act (29 U.S.C. 1514(b)) is amended—

3 (1) in paragraph (12), by striking ‘‘; and’’ and

4 inserting a semicolon;

5 (2) in paragraph (13), by striking the period at

6 the end of such paragraph and inserting ‘‘; and’’;

7 and

8 (3) by adding at the end the following new

9 paragraph:

10 ‘‘(14) procedures for the preparation and sub11 mission of an annual report to the Governor, which

12 shall include—

13 ‘‘(A) with respect to each participant who

14 has completed training under a program carried

15 out under part A of title II in the service deliv16 ery area, information relating to—

17 ‘‘(i) the type and amount of services

18 provided to such participant under the pro19 gram;

20 ‘‘(ii) the subsequent employment of

21 the participant, where appropriate, includ22 ing the amount of wages and employment

23 benefits received by the participant under

24 such employment; and
169

•S 2514 IS

1 ‘‘(iii) the degree of long-term eco2 nomic self-sufficiency which the participant

3 has achieved as a result of the training re4 ceived by the participant under the pro5 gram based upon the local economic self6 sufficiency standards table; and

7 ‘‘(B) a summary needs table which—

8 ‘‘(i) ranks and places participants into

9 at least 4 categories of equal size based

10 upon the needs designated by the Sec11 retary under section 106(b)(9)(A)(iii);

12 ‘‘(ii) includes a description of the level

13 of measurements used to place the partici14 pants into such categories; and

15 ‘‘(iii) includes a description of the de16 gree to which participants in each category

17 achieved long-term economic self-suffi18 ciency after termination from a program

19 under part A of title II.’’.

20 SEC. 247. INCLUSION OF LOCAL ECONOMIC SELF-SUFFI21 CIENCY STANDARDS TABLES AND RELATED

22 REPORTS IN GOVERNOR’S COORDINATION

23 AND SPECIAL SERVICES PLAN.

24 Subsection (b) of section 121 of such Act (29 U.S.C.

25 1531(b)) is amended—
170

•S 2514 IS

1 (1) by redesignating paragraphs (6) and (7) as

2 paragraphs (7) and (8), respectively; and

3 (2) by inserting after paragraph (5) the follow4 ing new paragraph:

5 ‘‘(6) The plan shall include—

6 ‘‘(A) the local economic self-sufficiency

7 standards table developed by each service deliv8 ery areas pursuant to section 106(b)(9);

9 ‘‘(B) a compilation of the reports received

10 by the Governor under section 104(b)(14); and

11 ‘‘(C) a description of goals and objectives

12 to assist participants enrolled in programs

13 under part A of title II achieve long-term eco14 nomic self-sufficiency.’’.

15 SEC. 248. DEMONSTRATION PROGRAMS TO IMPLEMENT

16 LOCAL ECONOMIC SELF-SUFFICIENCY

17 STANDARDS TABLES.

18 (a) IN GENERAL.—Part D of title IV of such Act (29

19 U.S.C. 1737 et seq.) is amended by adding at the end

20 the following new section:

21 ‘‘SEC. 457. ECONOMIC SELF-SUFFICIENCY DEMONSTRATION

22 GRANT PROGRAM.

23 ‘‘(a) AUTHORIZATION.—

24 ‘‘(1) IN GENERAL.—From funds available

25 under this part for the fiscal years 1996, 1997, and
171

•S 2514 IS

1 1998, the Secretary shall use $1,500,000 in each

2 such fiscal year to provide grants to States to estab3 lish and carry out demonstration and exemplary pro4 grams to increase the number of participants in pro5 grams under part A of title II who are trained and

6 placed in jobs that yield long-term economic self-suf7 ficiency in accordance with the local economic self8 sufficiency standards tables under section 106(b)(9).

9 ‘‘(2) LIMITATION.—The Secretary may provide

10 no more than 6 grants in each fiscal year under

11 paragraph (1).

12 ‘‘(b) APPLICATION.—The Secretary may provide a

13 grant to a State under subsection (a) only if such State

14 submits to the Secretary an application which contains

15 such information as the Secretary may reasonably require.

16 ‘‘(c) USE OF FUNDS.—

17 ‘‘(1) IN GENERAL.—A State shall use amounts

18 received from a grant under subsection (a) to award

19 grants to service delivery areas and eligible service

20 providers described in paragraph (3) to develop and

21 test strategies to train, place, and retain participants

22 in jobs that yield long-term economic self-sufficiency

23 in accordance with the local economic self-sufficiency

24 standards tables under section 106(b)(9).
172

•S 2514 IS

1 ‘‘(2) APPROPRIATE LEVEL OF SERVICES.—In

2 providing grants under paragraph (1), a State shall

3 ensure that each service delivery area or service pro4 vider provides for an appropriate level of services, in5 cluding supportive services, to participants using the

6 relevant local economic self-sufficiency standards ta7 bles developed by the service delivery area.

8 ‘‘(3) ELIGIBLE SERVICE PROVIDERS.—Eligible

9 service providers described in this paragraph are

10 community-based organizations, educational institu11 tions, or any other service providers in the State

12 that have a demonstrated success in—

13 ‘‘(A) providing occupational skills training

14 to participants for high-wage jobs; and

15 ‘‘(B) ensuring that participants receive

16 supportive services in order to successfully com17 plete such training.

18 ‘‘(d) ADMINISTRATIVE AND RELATED COSTS.—In

19 any fiscal year in which a State receives amounts from

20 a grant under subsection (a), the State may retain an

21 amount not to exceed 10 percent of the grant amount to—

22 ‘‘(1) pay the administrative costs of programs

23 established and carried out under subsection (a);
173

•S 2514 IS

1 ‘‘(2) facilitate the coordination of statewide ap2 proaches to training and placing participants in jobs

3 yielding long-term economic self-sufficiency; and

4 ‘‘(3) provide technical assistance to service de5 livery areas and service providers.

6 ‘‘(e) SELECTION.—In providing grants to States

7 under subsection (a), the Secretary shall consider—

8 ‘‘(1) the extent to which the State has dem9 onstrated that the coordination of services provided

10 under this Act with services provided by agencies

11 and organizations addressing the basic needs of low12 income individuals, including housing, food, trans13 portation, dependent care, and health care, has re14 sulted in the prompt and efficient delivery of services

15 to participants under this Act;

16 ‘‘(2) the extent to which the State has dem17 onstrated its capability to ensure the provision of all

18 needed supportive services to participants in any job

19 training program carried out in the State for the du20 ration of such participants’ enrollment;

21 ‘‘(3) the extent of private sector involvement in

22 the development and implementation of training pro23 grams that increase opportunities for participants to

24 achieve long-term economic self-sufficiency under

25 this Act in the State;
174

•S 2514 IS

1 ‘‘(4) the extent to which the initiatives proposed

2 by a State in its application supplement or build

3 upon existing efforts in the State to train and place

4 individuals in jobs that increase opportunities for

5 participants to achieve long-term economic self-suffi6 ciency;

7 ‘‘(5) whether the proposed amount of the grant

8 to be provided under subsection (a) is sufficient to

9 accomplish measurable goals;

10 ‘‘(6) the extent to which the State is prepared

11 to disseminate information on its demonstration

12 training programs relating to training, placement,

13 and other services; and

14 ‘‘(7) the extent to which the State is prepared

15 to produce materials that allow for replication of

16 such State’s demonstration training programs.

17 ‘‘(f) EVALUATION.—The Secretary shall provide for

18 an evaluation of the programs established and carried out

19 under subsection (a), including evaluation of the effective20 ness of such programs in—

21 ‘‘(1) assisting participants with varying needs

22 in achieving long-term economic self-sufficiency

23 through training, placement, and other services;

24 ‘‘(2) effectively implementing the use of local

25 economic self-sufficiency standards tables to increase
175

•S 2514 IS

1 the number of participants achieving long-term eco2 nomic self-sufficiency; and

3 ‘‘(3) developing and replicating approaches to

4 assist participants with varying needs in achieving

5 long-term economic self-sufficiency through training,

6 placement, and other services.’’.

7 (b) CONFORMING AMENDMENT.—The table of con8 tents of such Act is amended by inserting after the item

9 relating to section 456 the following new item:

‘‘Sec. 457. Economic self-sufficiency demonstration grant program.’’.

10 SEC. 249. REPORT AND RECOMMENDATIONS.

11 (a) REPORT.—Not later than 2 years after the date

12 on which the Secretary provides the 1st grant to a State

13 under section 457(a)(1) of the Job Training Partnership

14 Act and biennially thereafter, the Secretary of Labor shall

15 submit to the Congress a report on—

16 (1) the extent to which States, service delivery

17 areas, and other service providers have succeeded in

18 training, placing, and retaining participants enrolled

19 in programs under part A of title II of such Act in

20 jobs yielding long-term economic self-sufficiency; and

21 (2) the effectiveness of the demonstration pro22 grams established under section 457 of such Act in

23 developing and replicating approaches to train,

24 place, and retain participants in such jobs, including

25 a summary of activities performed by grant recipi-
176

•S 2514 IS

1 ents under the demonstration programs authorized

2 under such section.

3 (b) RECOMMENDATIONS.—The report described in

4 subsection (a) shall include recommendations on—

5 (1) the need to continue, expand, or modify the

6 demonstration programs established under section

7 457 of the Job Training Partnership Act;

8 (2) legislative and administrative changes nec9 essary to increase opportunities for participants to

10 achieve long-term economic self-sufficiency; and

11 (3) legislative and administrative action nec12 essary to institutionalize the use of local economic

13 self-sufficiency standards tables as the principal

14 measure of performance for programs carried out

15 under part A of title II of the Job Training Partner16 ship Act (29 U.S.C. 1601 et seq.) such that—

17 (A) the basic measure of performance for

18 such programs shall be the achievement of long19 term economic self-sufficiency resulting from

20 participation in the program;

21 (B) placements are evaluated according to

22 whether the wages and employment benefits

23 meet the participant’s particular long-term eco24 nomic self-sufficiency needs;
177

•S 2514 IS

1 (C) both wages and the cash value of em2 ployment benefits are used to determine wheth3 er a participant has achieved the self-sufficiency

4 standard for their particular family size and

5 composition;

6 (D) in order to ensure that participants

7 with varying needs are served equitably, the

8 placements shall be equitably distributed among

9 the categories contained in the summary needs

10 table established by the service delivery area in

11 the job training plan prepared under section

12 104(b)(14)(B) of the Job Training Partnership

13 Act; and

14 (E) incentive grants under section

15 106(b)(7) of such Act (29 U.S.C. 1516(b)(7))

16 are provided to service delivery areas based pri17 marily on the extent to which such areas exceed

18 the standards under the local economic self-suf19 ficiency standards table for such areas.

20 TITLE III—WORK AND FAMILY

21 Subtitle A—Child Care Public22 Private Partnership Act

23 SEC. 301. SHORT TITLE.

24 This title may be cited as the ‘‘Child Care Public25 Private Partnership Act’’.
178

•S 2514 IS

1 SEC. 302. ESTABLISHMENT OF BUSINESS INCENTIVE

2 GRANT PROGRAM.

3 The Secretary of Health and Human Services shall

4 establish a program to make grants to—

5 (1) businesses and consortia—

6 (A) to pay start-up costs incurred to pro7 vide child care services; or

8 (B) to provide additional child care serv9 ices;

10 needed by the employees of such businesses; and

11 (2) nonprofit business organizations to provide

12 technical information and assistance to enable busi13 nesses to provide child care services.

14 SEC. 303. ELIGIBILITY TO RECEIVE GRANTS.

15 To be eligible to receive a grant under section 302,

16 a business, nonprofit business organization, or consortium

17 shall submit to the Secretary an application in accordance

18 with section 304.

19 SEC. 304. APPLICATION.

20 The application required by section 303 shall be sub21 mitted by a business, nonprofit business organization, or

22 consortium at such time, in such form, and containing

23 such information as the Secretary may require by rule,

24 except that such application shall contain—

25 (1) an assurance that the applicant shall ex26 pend, for the purpose for which such grant is made,
179

•S 2514 IS

1 an amount not less than 200 percent of the amount

2 of such grant;

3 (2) an assurance that such applicant will ex4 pend such grant for the use specified in paragraph

5 (1) or (2) of section 302, as the case may be;

6 (3) an assurance that such applicant will em7 ploy strategies to ensure that child care services pro8 vided by such applicant, or provided with the tech9 nical information and assistance made available by

10 such applicant, are provided at affordable rates, and

11 on an equitable basis, to low- and moderate-income

12 employees;

13 (4) an assurance that such applicant—

14 (A) in the case of a business or consor15 tium, will comply with all State and local licens16 ing requirements applicable to such business or

17 consortium concerning the provision of child

18 care services; or

19 (B) in the case of a nonprofit business or20 ganization, will employ procedures to ensure

21 that technical information and assistance pro22 vided under this Act by such business organiza23 tion will be provided only to businesses that

24 provide child care services in compliance with
180

•S 2514 IS

1 all State and local licensing requirements appli2 cable to child care providers in such State; and

3 (5) in the case of a business or consortium, an

4 assurance that if the employees of such applicant do

5 not require all the child care services for which such

6 grant and the funds required by paragraph (1) are

7 to be expended by such applicant, the excess of such

8 child care services shall be made available to families

9 in the community in which such applicant is located.

10 SEC. 305. SELECTION OF GRANTEES.

11 For purposes of selecting applicants to receive grants

12 under this Act, the Secretary shall give priority to busi13 nesses that have fewer than 100 full-time employees. To

14 the extent practicable, the Secretary shall—

15 (1) make grants equitably under this Act to ap16 plicants located in all geographical regions of the

17 United States; and

18 (2) give priority to applicants for grants under

19 section 302(1).

20 SEC. 306. DEFINITIONS.

21 As used in the Act:

22 (1) BUSINESS.—The term ‘‘business’’ means a

23 person engaged in commerce whose primary activity

24 is not providing child care services.
181

•S 2514 IS

1 (2) CHILD CARE SERVICES.—The term ‘‘child

2 care services’’ means care for a child that is—

3 (A) provided on the site at which a parent

4 of such child is employed or at a site nearby in

5 the community; and

6 (B) subsidized at least in part by the busi7 ness that employs such parent.

8 (3) CONSORTIUM.—The term ‘‘consortium’’

9 means 2 or more businesses acting jointly. A consor10 tium may also include a nonprofit private organiza11 tion.

12 (4) SECRETARY.—The term ‘Secretary’ means

13 the Secretary of Health and Human Services.

14 SEC. 307. AUTHORIZATION OF APPROPRIATIONS.

15 There is authorized to be appropriated to carry out

16 this Act $25,000,000 for each of the fiscal years 1994,

17 1995, 1996, and 1997.

18 Subtitle B—After-School Child

19 Care

20 SEC. 311. SHORT TITLE.

21 This subtitle may be cited as the ‘‘After-School Child

22 Care Act’’.

23 SEC. 312. FINDINGS.

24 The Congress makes the following findings:
182

•S 2514 IS

1 (1) Major changes have occurred in America’s

2 family and work life in the past two decades as

3 women with children have entered the work force in

4 large numbers.

5 (2) Between 1970 and 1988, the proportion of

6 all women with children younger than 18 who were

7 in the labor force rose from 40 to 65 percent.

8 (3) For many working parents, especially single

9 parents, finding quality and affordable afterschool

10 services to provide supervision for their children

11 until the end of the work day is a major concern and

12 challenge.

13 (4) Because of the cost or unavailability of serv14 ices, afterschool care for many has been an insur15 mountable problem which has resulted in children

16 being left along afterschool to fend for themselves.

17 (5) More than 2,000,000 children between the

18 ages of 5 through 13 are left alone to care for them19 selves after school.

20 (6) Because of the lack of adult supervision,

21 such children are exposed to higher risks of physical

22 injury at the hands of others or themselves.

23 (7) Recent studies have also found that children

24 unsupervised for 1 or more hours per school day are

25 at greater risk of substance abuse.
183

•S 2514 IS

1 (8) The community as a whole also suffers from

2 the limited availability of quality and affordable

3 afterschool care for children.

4 SEC. 313. PURPOSE.

5 The purpose of this Act is to provide grants to assist

6 State educational agencies and local educational agencies

7 in establishing State and district-wide afterschool care

8 programs that—

9 (1) provide affordable and quality afterschool

10 supervision for students enrolled in kindergarten

11 through grade 6 who could be without supervision of

12 an adult after the end of the instructional school day

13 as a result of parental employment;

14 (2) reinforce and expand learning experiences of

15 children by providing a spectrum of opportunities

16 and activities after regular school hours, including

17 homework help, reading, tutorial assistance, enrich18 ment in areas such as art, crafts and expressive

19 arts, and access to school libraries and classrooms;

20 (3) improve the physical development of chil21 dren by providing supervised recreational sports, and

22 fitness activities;

23 (4) increase the utilization of school facilities;

24 and
184

•S 2514 IS

1 (5) enhance the relationship between home and

2 school by collaboratively meeting the needs of chil3 dren.

4 SEC. 314. PROGRAM AUTHORIZED.

5 (a) GENERAL AUTHORITY.—The Secretary of Edu6 cation is authorized to make grants to State and local edu7 cational agencies which have applications approved under

8 section 315 to pay the Federal share of the cost of pro9 grams designed to provide affordable and quality after10 school care for students enrolled in kindergarten through

11 grade 6.

12 (b) USES OF FUNDS.—State and local educational

13 agencies that receive grants under this Act may use the

14 funds to plan, develop, implement, administer, or expand

15 afterschool care programs through cooperative agree16 ments, contracts for services, or direct employment of

17 staff, which—

18 (1) provides stimulating afterschool activities

19 such as homework assistance, tutoring, reading,

20 physical activity, arts and crafts, and expressive

21 arts;

22 (2) utilizes existing public school facilities, in23 cluding classrooms, libraries, computers, and other

24 school equipment; and
185

•S 2514 IS

1 (3) utilizes school teachers, counselors, adminis2 trators, other faculty and parents to provide after3 school supervision.

4 (c) ELIGIBLE STUDENTS.—Participation in such an

5 afterschool program shall be limited to public elementary

6 school students enrolled in kindergarten through grade 6

7 who—

8 (1) come from households headed by a single

9 working parent or guardian, or two working parents

10 or guardians;

11 (2) are children of persons who work in the

12 afterschool program;

13 (3) are children of parents who attend school or

14 job training for career development; or

15 (4) are recommended by the school on the basis

16 of educational need, subject to available resources.

17 SEC. 315. APPLICATION.

18 (a) APPLICATION.—A State or local educational

19 agency that desires to receive a grant under this Act shall

20 submit an application to the Secretary of Education at

21 such time, in such manner, and accompanied by such addi22 tional information as the Secretary may reasonably re23 quire.
186

•S 2514 IS

1 (b) REQUIREMENTS.—Each such application shall

2 contain a plan to develop and implement a State or dis3 trict-wide afterschool program which includes—

4 (1) policies and procedures for the employment

5 of adequate staff to administer the afterschool pro6 gram;

7 (2) if applicable, procedures for contracting

8 with private entities to provide afterschool services;

9 (3) policies and procedures for establishing af10 fordable fees to be paid by parents and guardians to

11 help pay for the cost of the afterschool care;

12 (4) policies to ensure that students who qualify

13 for the school free or reduced-price lunch program

14 are exempt from program fees;

15 (5) policies and procedures to establish under

16 what circumstances students may be precluded from

17 continued participation in the program, including

18 failure to pay the program fee, chronic late pick-ups,

19 or conduct which jeopardizes the safety or welfare of

20 the program’s staff or participants;

21 (6) a plan to ensure optimum use of the edu22 cational facilities and resource available at sites that

23 are not in conflict with the goals and objectives of

24 the State or local educational agency’s regular edu25 cation and afterschool instructional program;
187

•S 2514 IS

1 (7) a plan to ensure adequate coordination with

2 the public school system on such matters as shared

3 use of facilities, materials and equipment, and cur4 riculum;

5 (8) a plan to ensure the development of a

6 meaningful curriculum consistent with objectives of

7 the State or local educational agency’s regular in8 structional program; and

9 (9) a plan to ensure parental and community

10 participation in the development of an afterschool

11 program, including input from existing public and

12 private providers of afterschool care.

13 (c) SPECIAL CONSIDERATION.—In making an award

14 under this Act, the Secretary shall give special consider15 ation to—

16 (1) the geographic distribution of awards, in17 cluding urban and rural districts; and

18 (2) districts with high proportions of at-risk

19 students.

20 SEC. 316. LIMITATIONS.

21 (a) FEDERAL SHARE.—Federal funds may be used

22 for not more than 75 percent of the costs of the project

23 with the remaining funds coming from non-Federal

24 sources, including program fees paid by parents and in25 kind services.
188

•S 2514 IS

1 (b) LIMITATION ON PLANNING COSTS.—Not more

than 1 2 ⁄3 of project funds may be used for planning an

3 afterschool program.

4 (c) IMPLEMENTATION OF NON-FEDERAL FUNDS.—

5 All Federal funds must be used to supplement and not

6 supplant the funds that would otherwise be available from

7 non-Federal sources for this project.

8 SEC. 317. REPORTS.

9 A State or local educational agency that receives a

10 grant under this Act shall submit to the Secretary a report

11 by March of each year that—

12 (1) describes the progress in meeting the pur13 pose of this Act;

14 (2) includes information on the enrollment and

15 costs of the afterschool program;

16 (3) describes the impact of the program on—

17 (A) meeting the need of afterschool care in

18 the State or district;

19 (B) other existing public and private after20 school care programs; and

21 (C) functioning of the regular school pro22 gram; and

23 (4) any other information that may be pre24 scribed by the Secretary of Education.
189

•S 2514 IS

1 SEC. 318. AUTHORIZATION OF FUNDS.

2 There are authorized to be appropriated to carry out

3 the provisions of this Act $250,000,000 for the fiscal year

4 1995 and such sums as may be necessary for each of the

5 fiscal years, 1996, 1997, 1998, and 1999.

6 Subtitle C—Dependent Care Tax

7 Credit Refundability

8 SEC. 321. DEPENDENT CARE TAX CREDIT.

9 (a) DEPENDENT CARE SERVICES.—Subpart C of

10 part IV of subchapter A of chapter 1 of the Internal Reve11 nue Code of 1986 (relating to refundable credits) is

12 amended by redesignating section 35 as section 36 and

13 by inserting after section 34 the following new section:

14 ‘‘SEC. 35. DEPENDENT CARE SERVICES.

15 ‘‘(a) ALLOWANCE OF CREDIT.—

16 ‘‘(1) IN GENERAL.—In the case of an individual

17 who maintains a household which includes as a

18 member 1 or more qualifying individuals, there shall

19 be allowed as a credit against the tax imposed by

20 this subtitle for the taxable year an amount equal to

21 the applicable percentage of the sum of—

22 ‘‘(A) the employment-related expenses paid

23 by such individual during the taxable year, plus

24 ‘‘(B) the respite care expenses paid by

25 such individual during the taxable year.

26 ‘‘(2) APPLICABLE PERCENTAGE DEFINED.—
190

•S 2514 IS

1 ‘‘(A) IN GENERAL.—For purposes of para2 graph (1), the term ‘applicable percentage’

3 means 50 percent reduced (but not below 20

4 percent) by 1 percentage point for each full

5 $1,000 amount by which the taxpayer’s ad6 justed gross income for the taxable year exceeds

7 $15,000.

8 ‘‘(B) COST-OF-LIVING ADJUSTMENT.—

9 ‘‘(i) IN GENERAL.—In the case of a

10 taxable year beginning in a calendar year

11 after 1994, subparagraph (A) shall be ap12 plied by increasing the $15,000 amount

13 contained therein by the cost-of-living ad14 justment (as defined in section 1(f)(3)) for

15 such calendar year determined by sub16 stituting ‘‘1993’’ for ‘‘1989’’ in subpara17 graph (B) of section 1(f)(3).

18 ‘‘(ii) ROUNDING.—If any increase de19 termined under clause (i) is not a multiple

20 of $10, such increase shall be rounded to

21 the nearest multiple of $10 (or if such in22 crease is a multiple of $15, such increase

23 shall be increased to the next highest mul24 tiple of $10).
191

•S 2514 IS

1 ‘‘(b) EMPLOYMENT-RELATED EXPENSES.—For pur2 poses of this section—

3 ‘‘(1) DETERMINATION OF ELIGIBLE EX4 PENSES.—

5 ‘‘(A) IN GENERAL.—The term ‘employ6 ment-related expenses’ means amounts paid for

7 the following expenses, but only if such ex8 penses are incurred to enable the taxpayer to be

9 gainfully employed for any period for which

10 there are 1 or more qualifying individuals with

11 respect to the taxpayer:

12 ‘‘(i) expenses for household services,

13 and

14 ‘‘(ii) expenses for the care of a quali15 fying individual.

16 Such term shall not include any amount paid

17 for services outside the taxpayer’s household at

18 a camp where the qualifying individual stays

19 overnight and shall not include any respite care

20 expense taken into account under subsection

21 (a).

22 ‘‘(B) EXCEPTION.—Employment-related

23 expenses described in subparagraph (A) which

24 are incurred for services outside the taxpayer’s
192

•S 2514 IS

1 household shall be taken into account only if in2 curred for the care of—

3 ‘‘(i) a qualifying individual described

4 in subsection (d)(1), or

5 ‘‘(ii) a qualifying individual (not de6 scribed in subsection (d)(1)) who regularly

7 spends at least 8 hours each day in the

8 taxpayer’s household.

9 ‘‘(C) DEPENDENT CARE CENTERS.—Em10 ployment-related expenses described in subpara11 graph (A) which are incurred for services pro12 vided outside the taxpayer’s household by a de13 pendent care center (as defined in subpara14 graph (D)) shall be taken into account only if—

15 ‘‘(i) such center complies with all ap16 plicable laws and regulations of a State or

17 unit of local government, and

18 ‘‘(ii) the requirements of subpara19 graph (B) are met.

20 ‘‘(D) DEPENDENT CARE CENTER DE21 FINED.—For purposes of this paragraph, the

22 term ‘dependent care center’ means any facility

23 which—
193

•S 2514 IS

1 ‘‘(i) provides care for more than 6 in2 dividuals (other than individuals who re3 side at the facility), and

4 ‘‘(ii) receives a fee, payment, or grant

5 for providing services for any of the indi6 viduals (regardless of whether such facility

7 is operated for profit).

8 ‘‘(2) DOLLAR LIMIT ON AMOUNT CRED9 ITABLE.—

10 ‘‘(A) IN GENERAL.—The amount of the

11 employment-related expenses incurred during

12 any taxable year which may be taken into ac13 count under subsection (a) shall not exceed—

14 ‘‘(i) $2,400 if there is 1 qualifying in15 dividual with respect to the taxpayer for

16 such taxable year, or

17 ‘‘(ii) $4,800 if there are 2 or more

18 qualifying individuals with respect to the

19 taxpayer for such taxable year.

20 The amount determined under clause (i) or (ii)

21 (whichever is applicable) shall be reduced by the

22 aggregate amount excludable from gross income

23 under section 129 for the taxable year.

24 ‘‘(B) REDUCTION IN LIMIT FOR AMOUNT

25 OF RESPITE CARE EXPENSES.—The limitation
194

•S 2514 IS

1 of subparagraph (A) shall be reduced by the

2 amount of the respite care expenses taken into

3 account by the taxpayer under subsection (a)

4 for the taxable year.

5 ‘‘(3) EARNED INCOME LIMITATION.—

6 ‘‘(A) IN GENERAL.—Except as otherwise

7 provided in this paragraph, the amount of the

8 employment-related expenses incurred during

9 any taxable year which may be taken into ac10 count under subsection (a) shall not exceed—

11 ‘‘(i) in the case of an individual who

12 is not married at the close of such year,

13 such individual’s earned income for such

14 year, or

15 ‘‘(ii) in the case of an individual who

16 is married at the close of such year, the

17 lesser of such individual’s earned income or

18 the earned income of his spouse for such

19 year.

20 ‘‘(B) SPECIAL RULE FOR SPOUSE WHO IS

21 A STUDENT OR INCAPABLE OF CARING FOR

22 HIMSELF.—In the case of a spouse who is a

23 student or a qualified individual described in

24 subsection (d)(3), for purposes of subparagraph

25 (A), such spouse shall be deemed for each
195

•S 2514 IS

1 month during which such spouse is a full-time

2 student at an educational institution, or is such

3 a qualifying individual, to be gainfully employed

4 and to have earned income of not less than—

5 ‘‘(i) $200 if paragraph (2)(A)(i) ap6 plies for the taxable year, or

7 ‘‘(ii) $400 if paragraph (2)(A)(ii) ap8 plies for the taxable year.

9 In the case of any husband and wife, this sub10 paragraph shall apply with respect to only one

11 spouse for any one month.

12 ‘‘(c) RESPITE CARE EXPENSES.—For purposes of

13 this section—

14 ‘‘(1) IN GENERAL.—The term ‘respite care ex15 penses’ means expenses paid (whether or not to en16 able the taxpayer to be gainfully employed) for—

17 ‘‘(A) the care of a qualifying individual—

18 ‘‘(i) who has attained the age of 13,

19 or

20 ‘‘(ii) who is under the age of 13 but

21 has a physical or mental impairment which

22 results in the individual being incapable of

23 caring for himself,
196

•S 2514 IS

1 during any period when such individual regu2 larly spends at least 8 hours each day in the

3 taxpayer’s household, or

4 ‘‘(B) care (for not more than 14 days dur5 ing the calendar year) of a qualifying individual

6 described in subparagraph (A) during any pe7 riod during which the individual does not regu8 larly spend at least 8 hours each day in the tax9 payer’s household.

10 ‘‘(2) DOLLAR LIMIT.—The amount of the res11 pite care expenses incurred during any taxable year

12 which may be taken into account under subsection

13 (a) shall not exceed—

14 ‘‘(A) $1,200 if such expenses are incurred

15 with respect to only 1 qualifying individual for

16 the taxable year, or

17 ‘‘(B) $2,400 if such expenses are incurred

18 for 2 or more qualifying individuals for such

19 taxable year.

20 ‘‘(d) QUALIFYING INDIVIDUAL.—For purposes of this

21 section, the term ‘qualifying individual’ means—

22 ‘‘(1) a dependent of the taxpayer who is under

23 the age of 13 and with respect to whom the taxpayer

24 is entitled to a deduction under section 151(e),
197

•S 2514 IS

1 ‘‘(2) a dependent of the taxpayer who is phys2 ically or mentally incapable of caring for himself, or

3 ‘‘(3) the spouse of the taxpayer, if he is phys4 ically or mentally incapable of caring for himself.

5 ‘‘(e) SPECIAL RULES.—For purposes of this sec6 tion—

7 ‘‘(1) MAINTAINING HOUSEHOLD.—An individ8 ual shall be treated as maintaining a household for

9 any period only if over half the cost of maintaining

10 the household for such period is furnished by such

11 individual (or, if such individual is married during

12 such period, is furnished by such individual and his

13 spouse).

14 ‘‘(2) MARRIED COUPLES MUST FILE JOINT RE15 TURN.—If the taxpayer is married at the close of

16 the taxable year, the credit shall be allowed under

17 subsection (a) only if the taxpayer and his spouse

18 file a joint return for the taxable year.

19 ‘‘(3) MARITAL STATUS.—An individual legally

20 separated from his spouse under a decree of divorce

21 or of separate maintenance shall not be considered

22 as married.

23 ‘‘(4) CERTAIN MARRIED INDIVIDUALS LIVING

24 APART.—If—
198

•S 2514 IS

1 ‘‘(A) an individual who is married and who

2 files a separate return—

3 ‘‘(i) maintains as his home a house4 hold which constitutes for more than one5 half of the taxable year the principal place

6 of abode of a qualifying individual, and

7 ‘‘(ii) furnishes over half the cost of

8 maintaining such household during the

9 taxable year, and

10 ‘‘(B) during the last 6 months of such tax11 able year such individual’s spouse is not a mem12 ber of such household,

13 such individual shall not be considered as married.

14 ‘‘(5) SPECIAL DEPENDENCY TEST IN CASE OF

15 DIVORCED PARENTS, ETC.—If—

16 ‘‘(A) paragraph (2) or (4) of section

17 152(e) applies to any child with respect to any

18 calendar year, and

19 ‘‘(B) such child is under the age of 13 or

20 is physically or mentally incapable of caring for

21 himself,

22 in the case of any taxable year beginning in such

23 calendar year, such child shall be treated as a quali24 fying individual with respect to the custodial parent

25 (within the meaning of section 152(e)(1)), and shall
199

•S 2514 IS

1 not be treated as a qualifying individual with respect

2 to the noncustodial parent.

3 ‘‘(6) PAYMENTS TO RELATED INDIVIDUALS.—

4 No credit shall be allowed under subsection (a) for

5 any amount paid by the taxpayer to an individual—

6 ‘‘(A) with respect to whom, for the taxable

7 year, a deduction under section 151(e) (relating

8 to deduction for personal exemptions for de9 pendents) is allowable either to the taxpayer or

10 his spouse, or

11 ‘‘(B) who is a child of the taxpayer (within

12 the meaning of section 151(e)(3)) who has not

13 attained the age of 19 at the close of the tax14 able year.

15 For purposes of this paragraph, the term ‘taxable

16 year’ means the taxable year of the taxpayer in

17 which the service is performed.

18 ‘‘(7) STUDENT.—The term ‘student’ means an

19 individual who during each of 5 calendar months

20 during the taxable year is a full-time student at an

21 educational organization.

22 ‘‘(8) EDUCATIONAL ORGANIZATION.—The term

23 ‘educational organization’ means an educational or24 ganization described in section 170(b)(1)(A)(ii).
200

•S 2514 IS

1 ‘‘(9) IDENTIFYING INFORMATION REQUIRED

2 WITH RESPECT TO SERVICE PROVIDER.—No credit

3 shall be allowed under subsection (a) for any amount

4 paid to any person unless—

5 ‘‘(A) the name, address, and taxpayer

6 identification number of such person are in7 cluded on the return claiming the credit, or

8 ‘‘(B) if such person is an organization de9 scribed in section 501(c)(3) and exempt from

10 tax under section 501(a), the name and address

11 of such person are included on the return

12 claiming the credit.

13 In the case of a failure to provide the information

14 required under the preceding sentence, the preceding

15 sentence shall not apply if it is shown that the tax16 payer exercised due diligence in attempting to pro17 vide the information so required.

18 ‘‘(f) REGULATIONS.—The Secretary shall prescribe

19 such regulations as may be necessary to carry out the pur20 poses of this section.’’

21 (b) CONFORMING AMENDMENTS.—

22 (1) Section 21 of such Code is hereby repealed.

23 (2) Paragraph (2) of section 129(b) of such

24 Code is amended by striking out ‘‘section 21(d)(2)’’

25 and inserting in lieu thereof ‘‘section 35(b)(3)(B)’’.
201

•S 2514 IS

1 (3) Subsection (e) of section 213 of such Code

2 is amended by striking out ‘‘section 21’’ and insert3 ing in lieu thereof ‘‘section 35’’.

4 (c) TECHNICAL AMENDMENTS.—

5 (1) The table of sections for subpart C of part

6 IV of subchapter A of chapter 1 of such Code is

7 amended by striking out the item relating to section

8 35 and inserting in lieu thereof the following:

‘‘Sec. 35. Dependent care services.

‘‘Sec. 36. Overpayments of tax.’’

9 (2) The table of sections for subpart A of such

10 part IV is amended by striking out the item relating

11 to section 21.

12 (d) EFFECTIVE DATE.—The amendments made by

13 this section shall apply to taxable years beginning after

14 December 31, 1993.

15 Subtitle D—Tax Incentives for

16 Family-Friendly Workplaces

17 SEC. 331. SHORT TITLE.

18 This subtitle may be cited as the ‘‘Tax Incentives for

19 Family-Friendly Workplaces Act’’.

20 SEC. 332. SMALL BUSINESS FAMILY AND MEDICAL LEAVE

21 CREDIT.

22 (a) IN GENERAL.—Subpart D of part IV of sub23 chapter A of chapter 1 of the Internal Revenue Code of
202

•S 2514 IS

1 1986 (relating to business related credits) is amended by

2 adding at the end thereof the following new section:

3 ‘‘SEC. 45A. SMALL BUSINESS FAMILY AND MEDICAL LEAVE

4 CREDIT.

5 ‘‘(a) AMOUNT OF CREDIT.—For purposes of section

6 38, in the case of an eligible small business employer, the

7 amount of the small business family and medical leave

8 credit determined under this section for any taxable year

9 shall be an amount equal to 50 percent of the qualified

10 family and medical leave costs paid or incurred by the tax11 payer during such taxable year.

12 ‘‘(b) LIMITATION ON CREDIT.—The credit allowed by

13 subsection (a) with respect to each employee for qualified

14 family and medical leave costs paid or incurred by the tax15 payer during the taxable year with respect to such em16 ployee shall not exceed $2,000.

17 ‘‘(c) DEFINITIONS.—For purposes of this section—

18 ‘‘(1) ELIGIBLE SMALL BUSINESS EMPLOYER.—

19 The term ‘eligible small business employer’ means

20 any employer who complies with title I of the Family

21 and Medical Leave Act of 1993 but who is not re22 quired to comply with such title by reason of em23 ploying fewer than 50 employees during the periods

24 described in section 101(4)(A) of such Act.
203

•S 2514 IS

1 ‘‘(2) QUALIFIED FAMILY AND MEDICAL LEAVE

2 COSTS.—The term ‘qualified family and medical

3 leave costs’ means expenses incurred in connection

4 with complying with title I of the Family and Medi5 cal Leave Act of 1993.

6 ‘‘(d) DENIAL OF DOUBLE BENEFIT.—No deduction

7 shall be allowed under this chapter for that portion of the

8 qualified family and medical leave costs otherwise allow9 able as a deduction for the taxable year which is equal

10 to the amount of the credit determined for such taxable

11 year under this section.’’

12 (b) TECHNICAL AMENDMENT.—Subsection (b) of

13 section 38 of such Code is amended by striking ‘‘plus’’

14 at the end of paragraph (7), by striking the period at the

15 end of paragraph (8) and inserting ‘‘, plus’’, and by add16 ing at the end thereof the following new paragraph:

17 ‘‘(9) in the case of an eligible small business

18 employer (as defined in section 45A(c)), the small

19 business family and medical leave credit determined

20 under section 45A.’’

21 (c) CLERICAL AMENDMENT.—The table of sections

22 for subpart D of part IV of subchapter A of chapter 1

23 of such Code is amended by adding at the end the follow24 ing new item:

‘‘Sec. 45A. Small business family and medical leave credit.’’
204

•S 2514 IS

1 (d) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to expenses paid or incurred after

3 the date which is 6 months after the date of the enactment

4 of the Family and Medical Leave Act of 1993.

5 SEC. 333. CREDIT FOR WAGES PAID TO EMPLOYEE WHO IS

6 ALLOWED TO SHIFT HOURS OF EMPLOYMENT

7 OR TO WORK AT HOME IN ORDER TO REDUCE

8 CHILD CARE NEEDS.

9 (a) IN GENERAL.—Subpart D of part IV of sub10 chapter A of chapter 1 of the Internal Revenue Code of

11 1986 (relating to business related credits) is amended by

12 adding at the end thereof the following new section:

13 ‘‘SEC. 45B. WAGES PAID TO EMPLOYEE WHO IS ALLOWED

14 TO SHIFT HOURS OF EMPLOYMENT OR WORK

15 AT HOME IN ORDER TO REDUCE CHILD CARE

16 NEEDS.

17 ‘‘(a) IN GENERAL.—For purposes of section 38, the

18 amount of the child care-related wage credit determined

19 under this section for any taxable year shall be an amount

equal to 1 20 ⁄3 of the aggregate wages paid or incurred during

21 such year which are attributable to services performed by

22 an employee of the taxpayer during the 1–year period be23 ginning on the date the employee first becomes a qualified

24 employee of the taxpayer.
205

•S 2514 IS

1 ‘‘(b) QUALIFIED EMPLOYEE.—For purposes of this

2 section, the term ‘qualified employee’ means any full-time

3 employee if—

4 ‘‘(1) such employee is permitted by the em5 ployer, solely in order to reduce the amount of de6 pendent care services provided (to a dependent of

7 the employee) outside the employee’s household, to

8 perform services for the employer—

9 ‘‘(A) at the employee’s home, or

10 ‘‘(B) during a period which is not within

11 the normal business hours of the employer, and

12 ‘‘(2) as a result of the services performed for

13 the employer as described in subparagraphs (A) and

14 (B) of paragraph (1), there is at least a 20 percent

15 reduction in the amount of time dependent care

16 services are provided to a dependent of the employee

17 outside the employee’s household.

18 ‘‘(c) OTHER DEFINITIONS AND SPECIAL RULES.—

19 ‘‘(1) EMPLOYEE MUST BE QUALIFIED EM20 PLOYEE FOR ENTIRE YEAR.—No credit shall be de21 termined under subsection (a) with respect to any

22 employee unless such employee is a qualified em23 ployee throughout the 1–year period described in

24 subsection (a).
206

•S 2514 IS

1 ‘‘(2) ONLY $6,000 OF WAGES PER YEAR TAKEN

2 INTO ACCOUNT.—The amount of the wages which

3 may be taken into account with respect to any indi4 vidual shall not exceed $6,000 per year.

5 ‘‘(3) WAGES.—For purposes of this section, the

6 term ‘wages’ has the meaning given such term by

7 section 51(c) (determined without regard to para8 graph (4) thereof).

9 ‘‘(4) CERTAIN RULES TO APPLY.—Rules similar

10 to the rules of section 52 and subsections (f)

11 through (k) of section 51 shall apply for purposes of

12 this section.’’

13 (b) TECHNICAL AMENDMENT.—Subsection (b) of

14 section 38 of such Code (relating to current year business

15 credit) is amended by striking ‘‘plus’’ at the end of para16 graph (8), by striking the period at the end of paragraph

17 (9) and inserting ‘‘, plus’’, and by adding at the end there18 of the following new paragraph:

19 ‘‘(10) the child care-related wage credit deter20 mined under section 45B(a).’’

21 (c) CLERICAL AMENDMENT.—The table of sections

22 for subpart D of part IV of subchapter A of chapter 1

23 of such Code is amended by adding at the end thereof

24 the following new item:

‘‘Sec. 45B. Wages paid to employee who is allowed to shift hours

of employment or work at home in order to reduce

child care needs.’’
207

•S 2514 IS

1 (d) EFFECTIVE DATE.—

2 (1) IN GENERAL.—The amendments made by

3 this section shall apply to wages paid or incurred

4 after the date which is 6 months after the date of

5 the enactment of the Family and Medical Leave Act

6 of 1993.

7 (2) EMPLOYER PRACTICES BEFORE EFFECTIVE

8 DATE.—For purposes of section 45B(b)(2) of the In9 ternal Revenue Code of 1986, as added by this sec10 tion, no reduction before the 1st taxable year to

11 which such section applies shall be taken into ac12 count.

13 Subtitle E—Federal Parental Leave

14 for Education Activities

15 SEC. 341. PARENTAL LEAVE FOR EDUCATION-RELATED AC16 TIVITIES.

17 (a) IN GENERAL.—(1) Subchapter II of chapter 63

18 of title 5, United States Code, is amended by adding at

19 the end the following:

20 ‘‘§ 6327. Parental leave for education-related activi21 ties

22 ‘‘(a) For the purpose of this section—

23 ‘‘(1) the term ‘dependent’ means a child under

24 subparagraph (A) or (B) of section 8341(a)(4); and
208

•S 2514 IS

1 ‘‘(2) the term ‘intimidate, threaten, or coerce’

2 includes promising to confer or conferring any bene3 fit (such as appointment, promotion, or compensa4 tion), or effecting or threatening to effect any re5 prisal (such as deprivation of appointment, pro6 motion, or compensation).

7 ‘‘(b)(1) Subject to paragraph (2) and subsection (c),

8 an employee is entitled to 1 day of leave in each calendar

9 year, without loss of, or reduction in, pay, leave to which

10 such employee is otherwise entitled, credit for time or serv11 ice, or performance or efficiency rating, in order to partici12 pate in or attend activities of a school which is attended

13 by a dependent of such employee.

14 ‘‘(2) In the case of an employee serving on a part15 time basis who is entitled to leave under this section, the

16 length of the ‘day’ under paragraph (1) shall be prorated

17 in accordance with regulations prescribed under sub18 section (d).

19 ‘‘(c) An employee shall be eligible for leave under this

20 section if such employee—

21 ‘‘(1) is employed in an Executive agency; and

22 ‘‘(2) has performed at least 12 months of serv23 ice as an employee (continuously or otherwise) in 1

24 or more Executive agencies.
209

•S 2514 IS

1 ‘‘(d)(1) The Office of Personnel Management shall

2 prescribe such regulations as may be necessary to carry

3 out this section.

4 ‘‘(2) Such regulations—

5 ‘‘(A) may include provisions under which leave

6 under this section may, at the option of the em7 ployee, be used in units of hours or other periods al8 lowable under the regulations; but

9 ‘‘(B) may not—

10 ‘‘(i) make an employee ineligible for leave

11 under this section by virtue of the fact that

12 such employee is serving on a temporary or

13 intermittent basis; or

14 ‘‘(ii) for purposes of any determination

15 under subsection (c)(2), exclude prior service by

16 virtue of the fact that such service was per17 formed on a temporary or intermittent basis.

18 ‘‘(e) Leave which is available to an employee under

19 this section in a year, but which is not used by such em20 ployee, shall not accumulate for use in a succeeding year.

21 ‘‘(f) An employee may not directly or indirectly in22 timidate, threaten, or coerce, or attempt to intimidate,

23 threaten, or coerce, any other employee for the purpose

24 of interfering with such other employee’s rights under the

25 preceding provisions of this section.’’.
210

•S 2514 IS

1 (2) The table of sections for chapter 63 of title 5,

2 United States Code, is amended by adding after the item

3 relating to section 6326 the following:

‘‘6327. Parental leave for education-related activities.’’.

4 (b) TECHNICAL AMENDMENT.—Section 6129 of title

5 5, United States Code, is amended by inserting ‘‘6327,’’

6 after ‘‘6326,’’.

7 SEC. 342. EFFECTIVE DATE; CREDITABILITY OF SERVICE.

8 (a) EFFECTIVE DATE.—This Act shall take effect as

9 of the first day of the calendar year in which this Act is

10 enacted.

11 (b) CREDITABILITY OF SERVICE.—To determine if

12 an individual satisfies the requirement under section

13 6327(c)(2) of title 5, United States Code, as amended by

14 this Act, service shall be taken into account without regard

15 to whether performed before, on, or after the date of en16 actment of this Act.

17 TITLE IV—ECONOMIC SELF18 SUFFICIENCY

19 Subtitle A—Child Support

20 SEC. 401. SHORT TITLE.

21 This subtitle may be cited as the ‘‘Child Support Eco22 nomic Security Act’’.
211

•S 2514 IS

1 PART A—CHILD SUPPORT ENFORCEMENT

2 AMENDMENTS

3 SEC. 411. UNIFORM STATEWIDE CHILD SUPPORT ENFORCE4 MENT PROGRAM.

5 Section 454(3) of the Social Security Act (42 U.S.C.

6 654(3)) is amended by striking ‘‘, which meets’’ and all

7 that follows and inserting ‘‘at the State level to administer

8 the plan under rules that apply uniformly throughout the

9 State;’’.

10 SEC. 412. ACCESS OF STATE CHILD SUPPORT ENFORCE11 MENT AGENCY TO INFORMATION IN STATE

12 DATA BASES.

13 Section 466(a) of the Social Security Act (42 U.S.C.

14 666(a)) is amended by inserting after paragraph (10) the

15 following:

16 ‘‘(11) Procedures which ensure that the agency

17 administering the plan under section 454 has on-line

18 access to all information contained in any data base

19 maintained by the State or any political subdivision

20 of the State.’’.

21 SEC. 413. CHILD SUPPORT PAYMENTS REQUIRED UNTIL

22 CERTAIN EVENT OCCURS.

23 Section 466(a) of the Social Security Act (42 U.S.C.

24 666(a)), as amended by section 412 of this Act, is amend25 ed by inserting after paragraph (11) the following:
212

•S 2514 IS

1 ‘‘(12)(A) Procedures which ensure that any

2 court order, or order of an administrative process es3 tablished under State law, for support or mainte4 nance of a child, requires the payment of such sup5 port until the child—

6 ‘‘(i) if not disabled—

7 ‘‘(I) attains the age of 18 years;

8 ‘‘(II) is graduated from secondary

9 school or its equivalent, or, having been en10 rolled at such a school or equivalent, is no

11 longer so enrolled at any such school or

12 equivalent;

13 ‘‘(III) marries; or

14 ‘‘(IV) is emancipated by a court of

15 competent jurisdiction; or

16 ‘‘(ii) if disabled—

17 ‘‘(I) marries; or

18 ‘‘(II) is able to support himself or her19 self.

20 ‘‘(B) For purposes of subparagraph (A), the

21 term ‘disabled’ means having a severe, chronic dis22 ability which—

23 ‘‘(i) is attributable to a mental or physical

24 impairment, or combination of mental and

25 physical impairments;
213

•S 2514 IS

1 ‘‘(ii) is likely to continue indefinitely;

2 ‘‘(iii) results in substantial functional limi3 tations in 3 or more of the following areas of

4 major life activity:

5 ‘‘(I) self-care;

6 ‘‘(II) receptive and expressive lan7 guage;

8 ‘‘(III) learning;

9 ‘‘(IV) mobility;

10 ‘‘(V) capacity for independent living;

11 ‘‘(VI) economic self-sufficiency; and

12 ‘‘(iv) reflects the need for a combination of

13 special, interdisciplinary, or generic care, treat14 ment, or other services that are of lifelong or

15 extended duration.’’.

16 SEC. 414. REQUIREMENT THAT ALL INCOME BE SUBJECT

17 TO WITHHOLDING TO MEET CHILD SUPPORT

18 OBLIGATIONS.

19 Section 466(a) of the Social Security Act (42 U.S.C.

20 666(a)), as amended by the preceding provisions of this

21 Act, is amended by inserting after paragraph (12) the fol22 lowing:

23 ‘‘(13)(A) Procedures which ensure that all in24 come of an individual (other than benefits received

25 through a Federal, State, or local program under
214

•S 2514 IS

1 which entitlement to benefits is based on the means

2 of the beneficiary) is subject to withholding to meet

3 the child support obligations of the individual.

4 ‘‘(B) Procedures which require the agency re5 sponsible for the operation of any State lottery (in

6 this subparagraph referred to as the ‘lottery agen7 cy’)—

8 ‘‘(i) to inquire of the agency administering

9 the plan under section 454 whether any person

10 to whom the lottery agency is to directly pay

11 lottery winnings owes overdue support;

12 ‘‘(ii) to defer payment of the winnings

13 until the lottery agency receives a response to

14 the inquiry; and

15 ‘‘(iii) if the person owes overdue support,

16 to withhold from the payment of the winnings

17 the amount of the overdue support.

18 ‘‘(C) Procedures which require any insurer sub19 ject to regulation by the State—

20 ‘‘(i) to inquire of the agency administering

21 the plan under section 454 whether any person

22 claiming benefits under a policy of insurance is23 sued by the insurer owes overdue support;
215

•S 2514 IS

1 ‘‘(ii) to defer payment of such benefits

2 until the insurer receives a response to the in3 quiry; and

4 ‘‘(iii) if the person owes overdue support—

5 ‘‘(I) to withhold from such benefits

6 the amount of the overdue support; and

7 ‘‘(II) to provide to the agency the

8 amount withheld for payment to the indi9 vidual owed the support.

10 ‘‘(D) Procedures which prevent a State court

11 from entering an order awarding the payment of

12 money to any person, or accepting an agreement set13 tling an action brought in the court that requires

14 money to be paid to any person, until—

15 ‘‘(i) the court has inquired of the agency

16 administering the plan under section 454

17 whether the person owes overdue support, and

18 has received a response to the inquiry; and

19 ‘‘(ii) if the person owes overdue support,

20 the person pays the amount of the overdue sup21 port.

22 ‘‘(E) Procedures which prevent any agency of

23 State or local government from recording a property

24 transaction, until—
216

•S 2514 IS

1 ‘‘(i) the agency has inquired of the agency

2 administering the plan under section 454

3 whether any party to the transaction owes over4 due support, and has received a response to the

5 inquiry; and

6 ‘‘(ii) any such party—

7 ‘‘(I) pays the amount of any overdue

8 support; or

9 ‘‘(II) demonstrates that the party has

10 made a good faith effort—

11 ‘‘(aa) to pay the support due for

12 the month in which the transaction is

13 sought to be recorded; and

14 ‘‘(bb) to provide for the payment

15 of the overdue support through regu16 lar, periodic payments.’’.

17 SEC. 415. STATE LICENSES DENIED TO PARENTS WITH

18 PAST DUE CHILD SUPPORT OBLIGATIONS.

19 Section 466(a) of the Social Security Act (42 U.S.C.

20 666(a)), as amended by the preceding provisions of this

21 Act, is amended by inserting after paragraph (13) the fol22 lowing:

23 ‘‘(14) Procedures which prohibit the provision,

24 renewal, or reissuance of any license, required under

25 the law of the State or of any political subdivision
217

•S 2514 IS

1 thereof before engaging in conduct subject to the li2 cense, to any person the amount of whose overdue

3 support exceeds $1,000, until the person dem4 onstrates that the person has made a good faith ef5 fort—

6 ‘‘(A) to pay the support due for the month

7 in which the license was requested to be pro8 vided, renewed, or reissued; and

9 ‘‘(B) to provide for the payment of the

10 overdue support through regular, periodic pay11 ments.’’.

12 SEC. 416. CERTAIN OVERDUE CHILD SUPPORT OBLIGA13 TIONS REQUIRED TO BE REPORTED TO

14 CONSUMER CREDIT REPORTING AGENCIES.

15 Section 466(a)(7) of the Social Security Act (42

16 U.S.C. 666(a)(7)) is amended to read as follows:

17 ‘‘(7) Procedures which ensure that the agency

18 administering the plan under section 454—

19 ‘‘(A) reports to the major consumer report20 ing agencies (as defined in section 603(f) of the

21 Fair Credit Reporting Act) the amount of over22 due support owed by an individual residing in

23 the State if the amount of the delinquency ex24 ceeds the amount of child support payable by

25 the individual on a monthly basis; and
218

•S 2514 IS

1 ‘‘(B) upon request of a consumer reporting

2 agency, furnishes the consumer reporting agen3 cy information on the amount of overdue sup4 port owed by an individual residing in the

5 State, for a fee equal to not more than the cost

6 of furnishing the information;’’.

7 SEC. 417. ELIMINATION OF STATUTES OF LIMITATIONS IN

8 CHILD SUPPORT CASES.

9 Section 466(a) of the Social Security Act (42 U.S.C.

10 666(a)), as amended by the preceding provisions of this

11 Act, is amended by inserting after paragraph (14) the fol12 lowing:

13 ‘‘(15) Procedures which ensure that there is no

14 limit to the period in which any court order, or order

15 of an administrative process established under State

16 law, for support or maintenance of a child, may be

17 enforced.’’.

18 SEC. 418. REQUIREMENT THAT SOCIAL SECURITY NUM19 BERS APPEAR ON MARRIAGE LICENSES AND

20 CHILD SUPPORT ORDERS.

21 Section 466(a) of the Social Security Act (42 U.S.C.

22 666(a)), as amended by the preceding provisions of this

23 Act, is amended by inserting after paragraph (15) the fol24 lowing:
219

•S 2514 IS

1 ‘‘(16) Procedures which ensure that, on each

2 marriage license issued by the State, and in each

3 court order, or order of an administrative process es4 tablished under State law, for support or mainte5 nance of a child, there appear the social security ac6 count numbers of each individual to whom the li7 cense is issued or upon whom the order imposes a

8 support obligation.’’.

9 SEC. 419. SEPARATE TREATMENT OF CASES ALLEGING

10 NONSUPPORT AND CASES ALLEGING DENIAL

11 OF VISITATION RIGHTS.

12 Section 466(a) of the Social Security Act (42 U.S.C.

13 666(a)), as amended by the preceding provisions of this

14 Act, is amended by inserting after paragraph (16) the fol15 lowing:

16 ‘‘(17) Procedures which ensure that—

17 ‘‘(A) conduct affecting the exercise of visi18 tation rights under a court order, or an order

19 of an administrative process established under

20 State law, for support or maintenance of a

21 child, shall be treated as irrelevant in any ac22 tion brought to enforce the support provisions

23 of the order; and

24 ‘‘(B) the provision of, or failure to provide,

25 support pursuant to such an order shall be
220

•S 2514 IS

1 treated as irrelevant in any action brought to

2 enforce visitation rights under the order.’’.

3 SEC. 420. TIMELY RESPONSE TO INTERSTATE LOCATE RE4 QUESTS.

5 Section 452(a) of the Social Security Act (42 U.S.C.

6 652(a)) is amended—

7 (1) by striking ‘‘and’’ at the end of paragraph

8 (9);

9 (2) by striking the period at the end of para10 graph (10) and inserting ‘‘; and’’; and

11 (3) by adding at the end the following:

12 ‘‘(11) in establishing standards under para13 graph (1) for locating absent parents—

14 ‘‘(A) not later than 1 year after the date

15 of the enactment of this paragraph, prescribe

16 deadlines by which States must respond to re17 quests from other States for information, tak18 ing into account the state of available tech19 nology; and

20 ‘‘(B) review and, if appropriate, revise

21 such deadlines every 3 years taking into ac22 count the state of available technology.’’.
221

•S 2514 IS

1 SEC. 421. REGULATIONS FOR PROCESSING OF INTERSTATE

2 CHILD SUPPORT CASES.

3 Section 452 of the Social Security Act (42 U.S.C.

4 652) is amended by adding at the end the following:

5 ‘‘(j) The Secretary shall issue regulations establishing

6 standards and procedures governing the processing by

7 States of cases involving the enforcement of child support

8 obligations against parents in other States, including a

9 deadline by which prosecutions must commence after the

10 case first comes to the attention of the State, and a dead11 line by which such actions must be decided or dismissed.’’.

12 SEC. 422. FINANCIAL INCENTIVES.

13 (a) ONLY CHILD SUPPORT ENFORCEMENT FUNDS

14 SUBJECT TO REDUCTION FOR SUBSTANTIAL NONCOMPLI15 ANCE.—

16 (1) IN GENERAL.—Subsection (h) of section

17 403 of such Act (42 U.S.C. 603(h)) is hereby trans18 ferred to section 455 of such Act, redesignated as

19 subsection (f) of such section 455, and amended—

20 (A) in paragraph (1)—

21 (i) by striking ‘‘Act’’ and inserting

22 ‘‘part’’;

23 (ii) by striking ‘‘part D’’ and inserting

24 ‘‘this part’’; and

25 (iii) by striking ‘‘such part’’ and in26 serting ‘‘this part’’; and
222

•S 2514 IS

1 (B) in paragraph (3), by striking ‘‘this

2 part’’ and inserting ‘‘part A’’.

3 (2) CONFORMING AMENDMENTS.—

4 (A) Section 452(a)(4) of such Act (42

5 U.S.C. 652(a)(4)) is amended by striking

6 ‘‘403(h)’’ each place such term appears and in7 serting ‘‘455(f)’’.

8 (B) Subsections (d)(3)(A), (g)(1), and

9 (g)(3)(A) of section 452 of such Act (42 U.S.C.

10 652) are each amended by striking ‘‘403(h)’’

11 and inserting ‘‘455(f)’’.

12 (b) PAYMENTS TO STATES INCREASED.—

13 (1) IN GENERAL.—Section 455(a) of such Act

14 (42 U.S.C. 655(a)) is amended—

15 (A) in paragraph (1)—

16 (i) by striking ‘‘(a)(1)’’ and inserting

17 ‘‘(a)’’; and

18 (ii) in subparagraph (A), by striking

19 ‘‘the percent specified in paragraph (2)’’

20 and inserting ‘‘90 percent’’; and

21 (iii) in each of subparagraphs (B) and

22 (C), by striking ‘‘(rather than the percent23 age specified in subparagraph (A))’’;

24 (B) by striking paragraph (2); and
223

•S 2514 IS

1 (C) by redesignating subparagraphs (A),

2 (B), and (C) of paragraph (1) as paragraphs

3 (1), (2), and (3), respectively.

4 (2) CONFORMING AMENDMENTS.—Paragraphs

5 (1)(B), (2)(A), and (2)(B) of section 452(d) of such

6 Act (42 U.S.C. 652(d)) are each amended by strik7 ing ‘‘455(a)(1)(B)’’ and inserting ‘‘455(a)(2)’’.

8 (c) REPEAL OF INCENTIVE PAYMENTS TO STATES.—

9 Section 458 of such Act (42 U.S.C. 658) is hereby re10 pealed.

11 SEC. 423. DEADLINE FOR ADOPTION OF UNIFORM INTER12 STATE FAMILY SUPPORT ACT.

13 Part D of title IV of the Social Security Act (42

14 U.S.C. 651–669) is amended by adding at the end the fol15 lowing:

16 ‘‘SEC. 469A. ADOPTION OF UNIFORM INTERSTATE FAMILY

17 SUPPORT ACT.

18 ‘‘As a condition for the approval of any State plan

19 under this part, the State must, not later than the effec20 tive date of this section, have in effect a law identical to

21 the Uniform Interstate Family Support Act, in the form

22 most recently adopted by the National Conference of Com23 missioners on Uniform State Laws before the enactment

24 of this section.’’.
224

•S 2514 IS

1 SEC. 424. COMMISSION ON CHILD SUPPORT GUIDELINES.

2 (a) ESTABLISHMENT.—There is hereby established a

3 commission to be known as the Commission on Child Sup4 port Guidelines (in this section referred to as the ‘‘Com5 mission’’).

6 (b) APPLICABLE RULES.—Subsection (b) (except the

7 first sentence of paragraph (4) thereof), and subsections

8 (c), (e), (f)(2), and (g), of section 126 of the Family Sup9 port Act (42 U.S.C. 666 note; Public Law 100–485) shall

10 apply to the Commission in the same manner as such pro11 visions apply to the Commission on Interstate Child Sup12 port.

13 (c) QUALIFICATIONS.—Each person with authority to

14 make appointments to the Commission shall exercise the

15 authority to ensure that the Commission includes—

16 (1) persons with judicial or administrative expe17 rience in matters involving child support enforce18 ment; and

19 (2) representatives of organizations which rep20 resent custodial and noncustodial parents.

21 (d) DUTY.—Not later than 18 months after the last

22 of the initial appointments to the Commission is made,

23 the Commission shall submit to the Congress a report con24 taining recommendations for national guidelines for child

25 support award amounts, after consideration of the guide-
225

•S 2514 IS

1 lines established by each State pursuant to section 467(a)

2 of the Social Security Act.

3 (e) TERMINATION.—The Commission shall terminate

4 2 months after the date of submission of the report re5 quired by subsection (d).

6 (f) EFFECTIVE DATE.—This section shall take effect

7 on the date of the enactment of this Act.

8 SEC. 425. EFFECTIVE DATE.

9 Except as otherwise provided in this title (or in the

10 amendments made by this title), the amendments made

11 by this title shall take effect on the 1st day of the 12th

12 calendar quarter beginning after the date of the enactment

13 of this Act.

14 PART B—INTERSTATE CHILD SUPPORT ACT OF

15 1993

16 SEC. 431. REFERENCE.

17 Except as otherwise specifically provided, wherever in

18 this Act an amendment is expressed in terms of an amend19 ment to or repeal of a section or other provision, the ref20 erence shall be considered to be made to that section or

21 other provision of the Social Security Act.

22 SEC. 432. FINDINGS, DECLARATIONS, AND PURPOSES.

23 (a) FINDINGS.—The Congress finds that—

24 (1) there is a large and growing number of

25 child support and parentage cases annually involving
226

•S 2514 IS

1 disputes between parents or presumed parents who

2 reside in different States;

3 (2) the laws by which the courts of the various

4 States determine their authority to establish, en5 force, or modify a child support order, or to deter6 mine parentage are not uniform;

7 (3) those laws, along with the limits imposed by

8 a Federal system, on the authority of each State to

9 take certain actions outside its own boundaries, con10 tribute to—

11 (A) the pressing problem of parties moving

12 to avoid jurisdiction;

13 (B) inequities based solely on choice of

14 domicile;

15 (C) disregard of court orders resulting in

16 massive arrearages nationwide;

17 (D) excessive relitigation of cases;

18 (E) the establishment of conflicting orders

19 by the courts of various States; and

20 (F) inter-jurisdiction travel and commu21 nication that is so expensive and time consum22 ing as to disrupt parties’ occupations and com23 mercial activities; and

24 (4) among the results of these conditions are—
227

•S 2514 IS

1 (A) the failure of the courts of such juris2 dictions to give full faith and credit to the judi3 cial proceedings of the other States;

4 (B) the deprivation of rights of liberty and

5 property without due process of law;

6 (C) burdens on commerce among the

7 States; and

8 (D) harm to the welfare of children and

9 their parents and other custodians.

10 (b) DECLARATION.—Based on the findings stated in

11 subsection (a), it is necessary to establish national stand12 ards under which the courts of each State will determine

13 their jurisdiction to establish, enforce, or modify a child

14 support order, or to determine parentage and the effect

15 to be given by each State to such determinations by the

16 courts of other States.

17 (c) PURPOSES.—The purposes of this Act are to—

18 (1) expand the forums available to establish,

19 enforce, or modify a child support order, or to deter20 mine parentage so that such actions may be heard

21 in the State that has the strongest interest in the

22 child’s financial security;

23 (2) promote and expand the exchange of infor24 mation and other forms of mutual assistance be25 tween States that are concerned with the same child;
228

•S 2514 IS

1 (3) facilitate the enforcement of support decrees

2 among the States;

3 (4) discourage continuing interstate controver4 sies over child support in the interest of greater fi5 nancial stability and secure family relationships for

6 the child; and

7 (5) avoid jurisdictional competition and conflict

8 between courts in matters relating to the establish9 ment, enforcement, and modification of child support

10 orders, and to the determination of parentage, which

11 have resulted in the movement of parties among

12 States and a low percentage of interstate cases with

13 support orders, thereby adversely affecting children’s

14 well-being.

15 (d) STATE.—For purposes of this section, the term

16 ‘‘State’’ means the several States, the District of Colum17 bia, the Commonwealth of Puerto Rico, the territories and

18 possessions of the United States, and Indian country (as

19 defined in section 1151 of title 18, United States Code).

20 PART C—BANKRUPTCY AMENDMENTS RELATING

21 TO CHILD SUPPORT, ALIMONY, AND PROP22 ERTY SETTLEMENT AGREEMENTS

23 SEC. 441. EXCEPTIONS TO STAY.

24 Section 362(b)(2) of title 11, United States Code, is

25 amended to read as follows:
229

•S 2514 IS

1 ‘‘(2) under subsection (a) of this section—

2 ‘‘(A) of the commencement or continuation

3 of an action or proceeding for—

4 ‘‘(i) the establishment of paternity; or

5 ‘‘(ii) the establishment or modification

6 of an order for alimony, maintenance, or

7 support; or

8 ‘‘(B) of the collection of—

9 ‘‘(i) alimony, maintenance, or support

10 from property that is not property of the

11 estate; or

12 ‘‘(ii) a debt of the kind specified in

13 section 523(a)(5) of this title to a child of

14 the debtor if the claim for such debt arises

15 after the commencement of the case;’’.

16 SEC. 442. PRIORITY.

17 Section 507(a) of title 11, United States Code, is

18 amended—

19 (1) in paragraph (8) by striking ‘‘(8) Eighth’’

20 and inserting ‘‘(9) Ninth’’,

21 (2) in paragraph (7) by striking ‘‘(7) Seventh’’

22 and inserting ‘‘(8) Eighth’’, and

23 (3) by inserting after paragraph (6) the follow24 ing:
230

•S 2514 IS

1 ‘‘(7) Seventh, allowed claims of the kind speci2 fied in section 523(a)(5) of this title.’’.

3 SEC. 443. EXEMPTIONS.

4 Section 522(f) of title 11, United States Code, is

5 amended—

6 (1) in paragraph (2)(C) by striking the period

7 at the end and inserting a semicolon, and

8 (2) by adding at the end the following:

9 ‘‘and does not secure a claim for a debt of a kind specified

10 in section 523(a)(5) of this title.’’.

11 SEC. 444. EXCEPTION TO DISCHARGE.

12 Section 523(a)(5) of title 11, United States Code, is

13 amended to read as follows:

14 ‘‘(5) to a spouse, former spouse, or child of the

15 debtor—

16 ‘‘(A) for alimony to, maintenance for, or

17 support of such spouse or child, in connection

18 with a separation agreement, divorce decree or

19 other order of a court of record, determination

20 made in accordance with State or territorial law

21 by a governmental unit, or property settlement

22 agreement, but not the extent that such debt

23 includes a liability designated as alimony, main24 tenance, or support, unless such liability is ac-
231

•S 2514 IS

1 tually in the nature of alimony, maintenance, or

2 support; or

3 ‘‘(B) for any liability under the terms of a

4 property settlement agreement entered into in

5 connection with a separation agreement or di6 vorce decree;

7 except to the extent such debt is assigned to another

8 entity, voluntarily, by operation of law, or otherwise

9 (other than debts assigned pursuant to section

10 402(a)(26) of the Social Security Act, or any such

11 debt which has been assigned to the Federal Govern12 ment or to a State or any political subdivision of

13 such State).’’.

14 SEC. 445. PREFERENCES.

15 Section 547(c) of title 11, United States Code,

16 is amended—

17 (1) in paragraph (6) by striking ‘‘or’’ at

18 the end,

19 (2) by redesignating paragraph (7) as

20 paragraph (8), and

21 (3) by inserting after paragraph (6) the

22 following:

23 ‘‘(7) to the extent such transfer was a bona fide

24 payment of a debt of a kind specified in section

25 523(a)(5) of this title; or’’.
232

•S 2514 IS

1 SEC. 446. PROPERTY OF THE ESTATE.

2 (a) PROPERTY UNDER CHAPTER 12.—Paragraphs

3 (1) and (2) of section 1207(a) of title 11, United States

4 Code, are amended by striking ‘‘but’’ and all that follows

5 through ‘‘first’’, and inserting the following:

6 ‘‘until the plan is confirmed, except that such prop7 erty as is necessary to fund the plan and is specified

8 in the plan or order confirming the plan shall re9 main property of the estate’’.

10 (b) PROPERTY UNDER CHAPTER 13.—Paragraphs

11 (1) and (2) of section 1306(a) of title 11, United States

12 Code, are amended by striking ‘‘but’’ and all that follows

13 through ‘‘first’’, and inserting the following:

14 ‘‘until the plan is confirmed, except that such prop15 erty as is necessary to fund the plan and is specified

16 in the plan or order confirming the plan shall re17 main property of the estate’’.

18 SEC. 447. CONFIRMATION OF PLAN.

19 (a) CONFIRMATION UNDER CHAPTER 12.—Section

20 1225(a) of title 11, United States Code, is amended—

21 (1) in paragraph (5) by striking ‘‘and’’ at the

22 end,

23 (2) by redesignating paragraph (6) as para24 graph (7), and

25 (3) by inserting after paragraph (5) the follow26 ing:
233

•S 2514 IS

1 ‘‘(6) the debtor has paid all allowable claims

2 arising after the order for relief for debts of the

3 kinds specified in section 523(a)(5) of this title;

4 and’’.

5 (b) CONFIRMATION UNDER CHAPTER 13.—Section

6 1325(a) of title 11, United States Code, is amended—

7 (1) in paragraph (5)(C) by striking ‘‘and’’ at

8 the end,

9 (2) by redesignating paragraph (6) as para10 graph (7), and

11 (3) by inserting after paragraph (5) the follow12 ing:

13 ‘‘(6) the debtor has paid all allowable claims

14 arising after the order for relief for debts of the

15 kinds specified in section 523(a)(5) of this title;

16 and’’.

17 SEC. 448. EXEMPTION.

18 Representatives of child support creditors shall be

19 permitted to appear and intervene without charge, and

20 without meeting any special local court rule requirement

21 for attorney appearances, in any bankruptcy proceeding

22 in any bankruptcy court or district court of the United

23 States if such representatives file a form in such court

24 that contains information detailing the child support debt,

25 its status, and other characteristics.
234

•S 2514 IS

1 SEC. 449. EFFECTIVE DATE; APPLICATION OF AMEND2 MENTS.

3 (a) EFFECTIVE DATE.—Except as provided in sub4 section (b), this title and the amendments made by this

5 title shall take effect on the date of the enactment of this

6 Act.

7 (b) APPLICATION OF AMENDMENTS.—The amend8 ments made by this title shall not apply with respect to

9 cases commenced under title 11 of the United States Code

10 before the date of the enactment of this Act.

11 PART D—LOCATE AND CASE TRACKING

12 SEC. 451. EXPANSION OF FUNCTIONS OF FEDERAL PARENT

13 LOCATOR SERVICE.

14 (a) IN GENERAL.—Section 453 (42 U.S.C. 653) is

15 amended—

16 (1) in subsection (a), by striking ‘‘enforcing

17 support obligations against such parent’’ and insert18 ing ‘‘establishing parentage, establishing, modifying,

19 and enforcing child support obligations, and enforc20 ing child visitation rights and responsibilities, and

21 which shall use safeguards to prevent the disclosure

22 of information in cases that would jeopardize the

23 safety of the custodial parent or any child of the

24 custodial parent’’;

25 (2) in subsection (b), by inserting after the 2nd

26 sentence the following: ‘‘Information with respect to
235

•S 2514 IS

1 an absent parent shall not be disclosed to any person

2 if the disclosure would jeopardize the safety of the

3 custodial parent or any child of the custodial parent.

4 Information with respect to an absent parent shall

5 not be disclosed to any person (other than the custo6 dial parent) unless the custodial parent has been no7 tified in advance of the disclosure.’’; and

8 (3) in subsection (d), by inserting ‘‘and such

9 reasonable fees’’ after ‘‘such documents’’.

10 (b) SENSE OF THE CONGRESS.—It is the sense of

11 the Congress that—

12 (1) the denial of visitation rights under a child

13 support order should be treated as irrelevant in any

14 action brought to enforce the support provisions of

15 the order; and

16 (2) the failure to pay child support pursuant to

17 a child support order should be treated as irrelevant

18 in any action brought to enforce visitation rights

19 under the order.

20 SEC. 452. EXPANSION OF DATA BASES ACCESSED BY PAR21 ENT LOCATOR SYSTEMS.

22 (a) ADDITIONAL INFORMATION FOR FEDERAL PAR23 ENT LOCATOR SERVICE.—Section 453 (42 U.S.C. 653) is

24 amended—
236

•S 2514 IS

1 (1) in subsection (b), by striking ‘‘the most re2 cent address and place of employment’’ and insert3 ing ‘‘the most recent residential address, employer

4 name and address, and amounts and nature of in5 come and assets’’;

6 (2) in subsection (c)(3), by striking ‘‘the resi7 dent parent’’ and inserting ‘‘either parent’’; and

8 (3) in subsection (e), by adding at the end the

9 following:

10 ‘‘(4) The Secretary of the Treasury shall enter into

11 an agreement with the Secretary to provide prompt access

12 by the Secretary (in accordance with this subsection and

13 section 6103(l)(6) of the Internal Revenue Code of 1986)

14 to the quarterly estimated Federal income tax returns

15 filed by individuals with the Internal Revenue Service.’’.

16 (b) STATE INFORMATION.—Section 466(a) (42

17 U.S.C. 666(a)) is amended by inserting after paragraph

18 (10) the following:

19 ‘‘(11) Procedures under which the State child

20 support enforcement agency shall have automated

21 on-line or batch access (or, if necessary,

22 nonautomated access) to information regarding resi23 dential addresses, employers and employer address24 es, income and assets, and medical insurance bene-
237

•S 2514 IS

1 fits with respect to absent parents that is available

2 through any data base maintained by—

3 ‘‘(A) any agency of the State or any politi4 cal subdivision thereof, that contains informa5 tion on residential addresses, or on employers

6 and employer addresses, as the State deems ap7 propriate;

8 ‘‘(B) any publicly regulated utility com9 pany located in the State;

10 ‘‘(C) any credit reporting agency located in

11 the State; and

12 ‘‘(D) any trade or labor union located in

13 the State.

14 ‘‘(12) Procedures under which the State child

15 support enforcement agency shall—

16 ‘‘(A) maintain a child support order reg17 istry which shall include each child support

18 order (or an abstract thereof) issued or modi19 fied in the State on or after the effective date

20 of this paragraph; and

21 ‘‘(B) transmit electronically to the Office

22 of Child Support Enforcement an abstract of

23 each such order, containing such information

24 and in such form as the Secretary may pre25 scribe pursuant to section 452(a)(11).’’.
238

•S 2514 IS

1 (c) FEDERAL REGISTRY OF ABSTRACTS OF CHILD

2 SUPPORT ORDERS.—Section 452(a) (42 U.S.C 652(a)),

3 as amended by section 472(a) of this Act, is amended—

4 (1) in paragraph (10), by striking ‘‘and’’ after

5 the semicolon;

6 (2) in paragraph (11), by striking the period at

7 the end of the 2nd sentence and inserting ‘‘; and’’;

8 and

9 (3) by adding at the end the following:

10 ‘‘(12) maintain a registry of all child support

11 order abstracts received from States pursuant to

12 section 466(a)(12)(B).’’.

13 (d) SENSE OF THE CONGRESS.—It is the sense of

14 the Congress that the Secretary of Health and Human

15 Services should investigate, pursuant to section 453(e) of

16 the Social Security Act, accessing Federal data banks that

17 are not linked to the Parent Locator Service which are

18 more than marginally useful in locating absent parents.

19 SEC. 453. EXPANSION OF ACCESS TO NATIONAL NETWORK

20 FOR LOCATION OF PARENTS.

21 (a) IN GENERAL.—Section 453 (42 U.S.C. 653) is

22 amended by adding at the end the following:

23 ‘‘(g) The Secretary shall expand the Parent Locator

24 Service to establish a national network based on the com-
239

•S 2514 IS

1 prehensive statewide child support enforcement systems

2 developed by the States, to—

3 ‘‘(1) allow each State to—

4 ‘‘(A) locate any absent parent who owes

5 child support, for whom a child support obliga6 tion is being established, or for whom an order

7 for visitation is being enforced, by—

8 ‘‘(i) accessing the records of other

9 State agencies and sources of locate infor10 mation directly from one computer system

11 to another; and

12 ‘‘(ii) accessing Federal sources of lo13 cate information in the same fashion;

14 ‘‘(B) access the files of other States to de15 termine whether there are other child support

16 orders and obtain the details of those orders;

17 ‘‘(C) provide for both on-line and batch

18 processing of locate requests, with on-line ac19 cess restricted to cases in which the information

20 is needed immediately (for such reasons as

21 court appearances) and batch processing used

22 to ‘troll’ data bases to locate individuals or up23 date information periodically; and

24 ‘‘(D) direct locate requests to individual

25 States or Federal agencies, broadcast requests
240

•S 2514 IS

1 to selected States, or broadcast cases to all

2 States when there is no indication of the source

3 of needed information;

4 ‘‘(2) provide for a maximum of 48-hour turn5 around time for information to be broadcast and re6 turned to a requesting State;

7 ‘‘(3) provide ready access to courts of the infor8 mation on the network by location of a computer

9 terminal in each court; and

10 ‘‘(4) access the registry of child support orders

11 for public and private cases maintained at the State

12 level by the State agencies as described in section

13 466(a)(12).’’.

14 (b) EXPANDED STATE INTERACTION WITH NA15 TIONAL NETWORK.—Section 454(16) (42 U.S.C.

16 654(16)) is amended—

17 (1) by striking ‘‘and (E)’’ and inserting ‘‘(E)’’;

18 and

19 (2) by striking ‘‘enforcement;’’ and inserting

20 ‘‘enforcement, and (F) to provide access to the na21 tional network developed pursuant to section

22 453(g);’’.

23 (c) SENSE OF THE CONGRESS.—It is the sense of the

24 Congress that the national network established under sec25 tion 453(g) of the Social Security Act should be used to
241

•S 2514 IS

1 access State records only through the agency that admin2 isters the State plan approved under part D of title IV

3 of such Act.

4 SEC. 454. PRIVATE ACCESS TO LOCATE AND ENFORCEMENT

5 SERVICES.

6 Section 466(a) (42 U.S.C. 666(a)), as amended by

7 section 452(b) of this Act, is amended by inserting after

8 paragraph (12) the following:

9 ‘‘(13)(A) Procedures under which private attor10 neys and pro se obligees must be given access to

11 State locate resources and through enforcement

12 techniques of the State child support enforcement

13 agency, for the purpose of establishing, modifying,

14 and enforcing child support, visitation, and parent15 age orders, in accordance with safeguards estab16 lished—

17 ‘‘(i) to provide the custodial parent ad18 vance notice of any release of information with

19 respect to a noncustodial parent; and

20 ‘‘(ii) to prevent release of information with

21 respect to a noncustodial parent if the release

22 may jeopardize the safety of the noncustodial

23 parent, the custodial parent, or any child of ei24 ther parent; and
242

•S 2514 IS

1 ‘‘(B) The procedures described in subparagraph

2 (A) must require the State—

3 ‘‘(i) to develop and publish guidelines im4 plementing the safeguards described in sub5 paragraph (A); and

6 ‘‘(ii) if the State provides for reasonable

7 fees for the access referred to in subparagraph

8 (A), to establish such fees in accordance with

9 guidelines developed and published by the State

10 that set schedules for such fees.’’.

11 SEC. 455. NATIONAL REPORTING OF NEW HIRES AND CHILD

12 SUPPORT INFORMATION.

13 (a) FEDERAL IMPLEMENTATION OF SYSTEM.—

14 (1) IN GENERAL.—The Secretary of the Treas15 ury, in consultation with the Secretary of Labor,

16 shall establish a system of reporting of new employ17 ees by requiring employers to provide a copy of every

18 new employee’s W–4 form to the employment secu19 rity agency of the State in which the employment is

20 located.

21 (2) EXPANDED USE OF FORM.—The Secretary

22 of the Treasury shall modify the W–4 form to be

23 completed by a new employee to enable the employee

24 to indicate on the form—
243

•S 2514 IS

1 (A) whether the employee owes child sup2 port, and if so—

3 (i) to whom the support is payable

4 and the amount of the support payable;

5 and

6 (ii) whether the support is to be paid

7 through wage withholding; and

8 (B) whether health care insurance is avail9 able to the new employee, and, if so, whether

10 the new employee has obtained such insurance

11 for the dependent children of the new employee.

12 (3) EMPLOYER WITHHOLDING OBLIGATION.—

13 (A) IN GENERAL.—Subtitle C of the Inter14 nal Revenue Code of 1986 (relating to employ15 ment taxes) is amended by inserting after chap16 ter 24 the following new chapter:

17 ‘‘CHAPTER 24A—COLLECTION OF CHILD

18 SUPPORT OBLIGATIONS AT SOURCE

19 ON WAGES

‘‘Sec. 3411. Child support obligations collected at source.

20 ‘‘SEC. 3411. CHILD SUPPORT OBLIGATIONS COLLECTED AT

21 SOURCE.

22 ‘‘(a) REQUIREMENT OF WITHHOLDING.—Every em23 ployer making payment of wages shall deduct and with-
244

•S 2514 IS

1 hold upon such wages a specified child support obligation

2 amount.

3 ‘‘(b) SPECIFIED CHILD SUPPORT OBLIGATION

4 AMOUNT.—For purposes of this chapter, the specified

5 child support obligation amount with respect to any em6 ployee shall be determined based on—

7 ‘‘(1) information provided by the employee, or

8 (if an agency of the State in which the employer is

9 located notifies the employer that such information

10 is inaccurate) information provided by the agency;

11 and

12 ‘‘(2) information contained in any wage with13 holding order received by the employer from any

14 State.

15 ‘‘(c) LIABILITY FOR PAYMENT.—The employer shall

16 be liable for the payment of the specified child support

17 obligation amount to the payee identified by the employee.

18 ‘‘(d) SPECIAL RULES.—For purposes of this chapter

19 (and so much of subtitle F as relates to this chapter), any

20 specified child support obligation amount shall be treated

21 as if it were a tax withheld under chapter 24 and rules

22 similar to the rules of such chapter shall apply.’’

23 (B) CLERICAL AMENDMENT.—The table of

24 chapters of subtitle C of the Internal Revenue

25 Code of 1986 is amended by inserting after the
245

•S 2514 IS

1 item relating to chapter 24 the following new

2 item:

‘‘CHAPTER 24A. Child support obligations collected at source.’’

3 (4) WITHHELD CHILD SUPPORT OBLIGATIONS

4 REPORTED ON W–2 FORMS.—Subsection (a) of sec5 tion 6051 of the Internal Revenue Code of 1986 (re6 lating to receipts for employees) is amended by

7 striking ‘‘and’’ at the end of paragraph (8), by strik8 ing the period at the end of paragraph (9) and in9 serting ‘‘, and’’, and by inserting after paragraph

10 (9) the following new paragraph:

11 ‘‘(10) the total amount of specified child sup12 port obligations withheld under section 3411.’’

13 (b) STATE IMPLEMENTATION OF SYSTEM.—Section

14 466(a) (42 U.S.C. 666(a)), as amended by section 454

15 of this Act, is amended by inserting after paragraph (13)

16 the following:

17 ‘‘(14) Procedures under which the State shall—

18 ‘‘(A) use the Parent Locator Service estab19 lished under section 453 to access information

20 in the national registry of child support orders

21 maintained pursuant to section 452(a)(12) with

22 respect to new employee, compare such infor23 mation with the information reported on W–4

24 forms of new employees, and identify child sup25 port obligations not reported on such forms;
246

•S 2514 IS

1 ‘‘(B) if child support information from the

2 W–4 form of a new employee agrees with infor3 mation with respect to the new employee in the

4 national registry of child support orders main5 tained pursuant to section 452(a)(12), notify

6 the individual owed the support (or the individ7 ual’s designee) of such information;

8 ‘‘(C) notify an employer of any new em9 ployee who has not reported on the W–4 form

10 a child support obligation of the new employee,

11 using the wage withholding order developed

12 under section 452(a)(14);

13 ‘‘(D) impose monetary penalties on—

14 ‘‘(i) any individual who owes child

15 support and fails to report the obligation

16 to provide the support on a Federal income

17 tax W–4 form at time of employment;

18 ‘‘(ii) any employer who fails to for19 ward a W–4 form for a new employee to

20 the State employment security agency

21 within 10 calendar days of the date of the

22 first payroll from which the new employee

23 is paid; and

24 ‘‘(iii) any employer who fails to with25 hold from the pay of any new employee
247

•S 2514 IS

1 who reports a child support obligation on

2 a W–4 form an amount equal to the sup3 port owed, or fails to pay to the individual

4 owed the obligation the amount so with5 held, within 10 calendar days of the date

6 of the payroll, using electronic funds trans7 fer, if possible, unless otherwise notified by

8 a State agency;

9 ‘‘(E) provide the services described in this

10 paragraph to any individual owed child support

11 who applies for assistance under the State plan;

12 and

13 ‘‘(F) on request of another State, broad14 cast over the Parent Locator Service to such

15 other State child support information from W–

16 4 forms that have been sent to the State em17 ployment security agency.’’.

18 SEC. 456. ACCESS TO LAW ENFORCEMENT RECORDS SYS19 TEMS.

20 (a) ACCESS BY CHILD SUPPORT ENFORCEMENT

21 AGENCIES.—The head of the National Criminal Informa22 tion Center, the head of the National Law Enforcement

23 Telecommunications Network, and the head of any other

24 national or regional system for tracking individuals shall

25 each—
248

•S 2514 IS

1 (1) allow Federal, State, and local child support

2 enforcement agencies access to the information of

3 the system for purposes of establishing paternity or

4 a child support obligation of an individual tracked

5 by the system, using appropriate safeguards to pre6 vent improper release of such information; and

7 (2) if an access code is required to gain such

8 access, provide the access code to each child support

9 enforcement agency that applies for the code.

10 (b) LOSS OF FEDERAL FUNDING.—A non-Federal

11 system for tracking individuals that fails to comply with

12 paragraphs (1) and (2) of subsection (a) shall not be eligi13 ble to receive Federal funding for the system.

14 SEC. 457. BROADCASTING OF WARRANTS ON STATE NET15 WORKS.

16 Section 466(a) (42 U.S.C. 666(a)), as amended by

17 section 455 of this Act, is amended by inserting after

18 paragraph (14) the following:

19 ‘‘(15) Procedures under which the State—

20 ‘‘(A) shall broadcast on any State or local

21 crime information system each failure-to-appear

22 warrant, capias, and bench warrant issued by a

23 State court in any proceeding related to child

24 support; and
249

•S 2514 IS

1 ‘‘(B) shall, in a criminal case, remit to any

2 individual to whom the defendant owes child

3 support any security posted by or on behalf of

4 the defendant and forfeited, to the extent of

5 any arrearage in the payment of the support.’’.

6 SEC. 458. CASE MONITORING.

7 Section 454(16)(E) (42 U.S.C. 654(16)(E)) is

8 amended by inserting ‘‘, not less frequently that once

9 every 3 years’’ before the semicolon.

10 SEC. 459. ACCESS TO FINANCIAL RECORDS.

11 Section 466(a) (42 U.S.C. 666(a)), as amended by

12 section 455 of this Act, is amended by inserting after

13 paragraph (15) the following:

14 ‘‘(16) Procedures under which the State may

15 obtain access to financial records maintained with

16 respect to any person by any financial institution

17 doing business in the State, for the purpose of estab18 lishing or enforcing a child support obligation of the

19 person.’’.

20 PART E—ESTABLISHMENT

21 SEC. 461. INTERSTATE RECOGNITION OF CHILD SUPPORT

22 AND PARENTAGE ORDERS.

23 (a) IN GENERAL.—Chapter 115 of title 28, United

24 States Code, is amended by inserting after section 1738A

25 the following:
250

•S 2514 IS

1 ‘‘§ 1738B. Full faith and credit to child support and

2 parentage orders

3 ‘‘(a) DEFINITIONS.—As used in this section:

4 ‘‘(1) The term ‘child’ means any individual who

5 has not attained the age of 18 years, and any indi6 vidual who has attained the age of 18 years for

7 whom a child support order has been issued pursu8 ant to the laws of a State.

9 ‘‘(2) The term ‘child support’ includes periodic

10 and lump-sum payments for current and past due

11 economic support, payments of premiums for health

12 insurance for children, payments for or provision of

13 child care, and payments for educational expenses.

14 ‘‘(3) The term ‘child support order’ means a

15 judgment, decree or order of a court requiring the

16 payment of money, whether in periodic amounts or

17 lump sum, for the support of a child and includes

18 permanent and temporary orders, initial orders and

19 modifications, ongoing support and arrearages.

20 ‘‘(4) The term ‘child’s State’ means, with re21 spect to a child, the State in which the child resides

22 with a parent or an individual acting as a parent.

23 ‘‘(5) The term ‘contestant’ means an individual,

24 including a parent, who claims a right to receive

25 child support or is under an order to pay child sup-
251

•S 2514 IS

1 port, and includes States and political subdivisions

2 to which support rights have been assigned.

3 ‘‘(6) The term ‘court’ means a court, adminis4 trative process, or quasijudicial process of a State

5 that is authorized to—

6 ‘‘(A) adjudicate parentage;

7 ‘‘(B) establish the amount of support pay8 able by a contestant; or

9 ‘‘(C) modify the amount of support pay10 able by a contestant.

11 ‘‘(7) The term ‘home State’ means, with respect

12 to a child, the State in which, immediately preceding

13 the time involved, the child lived with his or her par14 ents, a parent, or an individual acting as parent, for

15 at least 6 consecutive months (including any periods

16 of temporary absence), and if the child has not at17 tained the age of 6 months, the State in which the

18 child lived from birth with any of such individuals.

19 ‘‘(8) The term ‘individual acting as a parent’

20 means an individual, other than a parent, who has

21 physical custody of a child and who has either been

22 awarded custody by a court or claims a right to cus23 tody.

24 ‘‘(9) The terms ‘modification’ and ‘modify’ refer

25 to a change in a child support order or an order ad-
252

•S 2514 IS

1 judicating parentage that modifies, replaces, super2 sedes, or otherwise is made subsequent to such prior

3 order, whether or not made by the same court that

4 issued such prior order.

5 ‘‘(10) The term ‘State’ means a State of the

6 United States, the District of Columbia, the Com7 monwealth of Puerto Rico, a territory or possession

8 of the United States, and Indian country as defined

9 in section 1151 of title 18, United States Code.

10 ‘‘(b) FULL FAITH AND CREDIT.—The courts of each

11 State shall recognize and enforce according to its terms

12 a child support order or an order adjudicating parentage

13 against an individual over whom personal jurisdiction has

14 been exercised consistent with this section, and shall not

15 modify such an order except as provided in subsection (f).

16 ‘‘(c) BASES OF JURISDICTION.—A court of a State

17 may exercise personal jurisdiction over a nonresident con18 testant if there is any basis consistent with the constitu19 tion of the State and the Constitution of the United States

20 for the exercise.

21 ‘‘(d) CONTINUING EXCLUSIVE JURISDICTION.—A

22 court of a State which has issued a child support order

23 or an order adjudicating parentage consistent with this

24 section shall have continuing, exclusive jurisdiction of the

25 order for so long as the State remains the child’s State
253

•S 2514 IS

1 or the residence of any contestant, unless another State,

2 acting in accordance with subsection (f), has modified the

3 order.

4 ‘‘(e) NOTICE AND HEARING.—Before a court of a

5 State makes a child support order or adjudicates parent6 age, reasonable notice and opportunity to be heard shall

7 be given to the contestants.

8 ‘‘(f) MODIFICATION.—A court of a State may modify

9 a child support order or an order adjudicating parentage

10 issued by a court of another State if—

11 ‘‘(1) each contestant has filed written consent

12 for the court of the State to modify the order and

13 assume continuing, exclusive jurisdiction of the

14 order; and

15 ‘‘(2) the court of the State otherwise has juris16 diction to issue such an order.

17 ‘‘(g) ENFORCEMENT OF PRIOR ORDERS.—A court of

18 a State which no longer has continuing, exclusive jurisdic19 tion of a child support order or an order adjudicating par20 entage may enforce the order with respect to unsatisfied

21 obligations which accrued before the date the order is

22 modified in accordance with subsection (f).

23 ‘‘(h) WITHHOLDING EXERCISE OF JURISDICTION.—

24 A court of a State shall not exercise jurisdiction in any

25 proceeding for a child support order or an adjudication
254

•S 2514 IS

1 of parentage commenced during the pendency of a pro2 ceeding in a court of another State when the court of the

3 other State is exercising jurisdiction consistent with this

4 section unless—

5 ‘‘(1) the proceeding was filed in the State be6 fore the expiration of time allowed in the other State

7 for filing a responsive pleading challenging the exer8 cise of jurisdiction by the other State;

9 ‘‘(2) the contesting party timely challenges the

10 exercise of jurisdiction by the other State; and

11 ‘‘(3) if applicable, the court is in the home

12 State of the child.

13 ‘‘(i) CHOICE OF LAW.—(1) Except as provided in

14 paragraphs (2) and (3), the forum State’s law shall apply

15 in a proceeding to establish, modify, or enforce a child

16 support order or an order adjudicating parentage.

17 ‘‘(2) The courts of a State shall apply the law of the

18 State that issued a child support order or an order adju19 dicating parentage in interpreting such an order.

20 ‘‘(3) In an action to enforce a child support order

21 or an order adjudicating parentage, the statute of limita22 tions under the laws of the forum State or the issuing

23 State, whichever is longer, shall apply.’’.
255

•S 2514 IS

1 (b) CLERICAL AMENDMENT.—The chapter analysis

2 for such chapter is amended by inserting after the item

3 relating to section 1738A the following:

‘‘1738B. Full faith and credit to child support and parentage orders.’’.

4 SEC. 462. SERVICE OF PROCESS ON FEDERAL EMPLOYEES

5 AND MEMBERS OF THE ARMED SERVICES IN

6 CONNECTION WITH PROCEEDINGS RELATING

7 TO CHILD SUPPORT AND PARENTAGE OBLI8 GATIONS.

9 Part D of title IV (42 U.S.C. 651–670) is amended

10 by inserting after section 460 the following:

11 ‘‘SEC. 460A. SERVICE OF PROCESS ON FEDERAL EMPLOY12 EES AND MEMBERS OF THE ARMED SERV13 ICES IN CONNECTION WITH PROCEEDINGS

14 RELATING TO CHILD SUPPORT AND PARENT15 AGE OBLIGATIONS.

16 ‘‘(a) IN GENERAL.—The head of each Government

17 agency shall, in accordance with applicable regulations

18 under subsection (b), designate an agent for receipt of

19 service of process, for any Federal employee or member

20 of the Armed Forces serving in or under such agency, in

21 connection with an action, brought in a court of competent

22 jurisdiction within any State, territory, or possession of

23 the United States, for obtaining a child support order or

24 for establishing parentage.
256

•S 2514 IS

1 ‘‘(b) REGULATIONS.—Regulations governing the im2 plementation of this section with respect to the executive,

3 legislative, or judicial branch of the Government shall be

4 promulgated by the authority or authorities responsible

5 for promulgating regulations under section 461 with re6 spect to the branch of Government involved.

7 ‘‘(c) INTERPRETIVE RULE.—This section shall not be

8 construed to prevent any otherwise eligible individual from

9 requesting or being granted a stay or continuance in any

10 judicial proceeding, including under the Soldiers’ and Sail11 ors’ Civil Relief Act of 1940.

12 ‘‘(d) GOVERNMENT AGENCY DEFINED.—For pur13 poses of this section, the term ‘Government agency’ means

14 each agency of the Federal Government, including—

15 ‘‘(1) an Executive agency (as defined by section

16 105 of title 5, United States Code);

17 ‘‘(2) the Department of Defense, to the extent

18 that any Federal employee serving in or under that

19 agency or any member of the armed services is in20 volved;

21 ‘‘(3) the United States Postal Service and the

22 Postal Rate Commission;

23 ‘‘(4) the government of the District of Colum24 bia;
257

•S 2514 IS

1 ‘‘(5) an agency within the legislative or judicial

2 branch of the Government; and

3 ‘‘(6) an advisory committee to which the Fed4 eral Advisory Committee Act applies.’’.

5 SEC. 463. PRESUMED ADDRESS OF OBLIGOR AND OBLIGEE.

6 Section 466(a) (42 U.S.C. 666(a)), as amended by

7 section 457 of this Act, is amended by inserting after

8 paragraph (16) the following:

9 ‘‘(17) Procedures under which the State shall—

10 ‘‘(A) require the court or administrative

11 agency with authority to issue the final order in

12 a child support or parentage case to require

13 each party subject to the order to file with the

14 court or administrative agency, on or before the

15 date the order is issued—

16 ‘‘(i) the party’s residential address or

17 addresses;

18 ‘‘(ii) the party’s mailing address or

19 addresses;

20 ‘‘(iii) the party’s home telephone num21 ber or numbers;

22 ‘‘(iv) the party’s driver’s license num23 ber;

24 ‘‘(v) the party’s social security ac25 count number;
258

•S 2514 IS

1 ‘‘(vi) the name of each employer of

2 the party;

3 ‘‘(vii) the addresses of each place of

4 employment of the party; and

5 ‘‘(viii) the party’s work telephone

6 number or numbers;

7 ‘‘(B) require the court or administrative

8 agency in any action related to child support to

9 presume, for the purpose of providing sufficient

10 notice (other than the initial notice in an action

11 to establish parentage or a child support order),

12 that the noncustodial parent resides at the last

13 residential address given by the noncustodial

14 parent to the court or agency, or a more recent

15 address provided in good faith by the parent

16 owed the support obligation; and

17 ‘‘(C) ensure that information concerning

18 the location of a custodial parent or a child of

19 the custodial parent is not released to a

20 noncustodial parent if a court order has been

21 issued against the noncustodial parent for the

22 physical protection of the custodial parent or

23 the child.’’.

24 SEC. 464. NOTICE TO CUSTODIAL PARENTS.

25 Section 454 (42 U.S.C. 654) is amended—
259

•S 2514 IS

1 (1) by striking ‘‘and’’ at the end of paragraph

2 (23);

3 (2) by striking the period at the end of para4 graph (24) and inserting ‘‘; and’’; and

5 (3) by inserting after paragraph (24) the fol6 lowing:

7 ‘‘(25) provide that the agency administering the

8 plan—

9 ‘‘(A) shall make reasonable attempts to

10 provide timely notice to any individual owed

11 child support of any proceeding to establish,

12 modify, or enforce the support obligation;

13 ‘‘(B) shall not delay any such proceeding

14 solely due to the failure of the custodial parent

15 to appear; and

16 ‘‘(C) shall, within 14 days after the date

17 an order that establishes, modifies, or enforces

18 a child support obligation is issued, provide the

19 custodial parent of the child with a copy of the

20 order.’’.

21 SEC. 465. UNIFORM STATE RULES IN PARENTAGE AND

22 CHILD SUPPORT CASES.

23 Section 466(a) (42 U.S.C. 666(a)), as amended by

24 section 463 of this Act, is amended by inserting after

25 paragraph (17) the following:
260

•S 2514 IS

1 ‘‘(18) Procedures under which, in the State—

2 ‘‘(A) a party may, in a single cause of ac3 tion, seek judicial determination of the parent4 age of a child and judicial establishment of a

5 child support order with respect to the child;

6 ‘‘(B) the venue for determination of par7 entage of a child shall be in the county of resi8 dence of the child;

9 ‘‘(C) a court or agency that issues a par10 entage or child support order shall have con11 tinuing and exclusive jurisdiction over the order

12 until the court or agency transfers such juris13 diction to the appropriate court or agency in

14 the county of residence of the child, or the par15 ties consent to be bound by another court or

16 agency in the State that has subject matter ju17 risdiction;

18 ‘‘(D) proceedings to enforce or modify of a

19 child support order may be transferred to the

20 city, county, or district in which the child re21 sides without any requirement that the order be

22 filed or the defendant be served again;

23 ‘‘(E) a court or agency that hears a par24 entage or child support cases shall have state25 wide jurisdiction over the parties to the case,
261

•S 2514 IS

1 and the parentage and child support orders is2 sued by the court or agency shall have state3 wide effect for enforcement purposes; and

4 ‘‘(F) denial of visitation rights may not be

5 used as a defense in an action to enforce an ob6 ligation to provide child support and the failure

7 to provide child support may not be used as a

8 defense in an action to enforce visitation

9 rights.’’.

10 SEC. 466. FAIR CREDIT REPORTING ACT AMENDMENT.

11 Section 604 of the Consumer Credit Protection Act

12 (15 U.S.C. 1681b) is amended by adding at the end the

13 following:

14 ‘‘(4) To a State agency administering a State plan

15 under section 454 of the Social Security Act, for use to

16 establish or modify a child support award.’’.

17 SEC. 467. NATIONAL CHILD SUPPORT GUIDELINES COMMIS18 SION.

19 (a) ESTABLISHMENT.—There is hereby established a

20 commission to be known as the ‘‘National Child Support

21 Guidelines Commission’’ (in this section referred to as the

22 ‘‘Commission’’).

23 (b) GENERAL DUTIES.—The Commission shall con24 vene a conference to study the desirability of a national

25 child support guideline, and if such guideline is advisable,
262

•S 2514 IS

1 the Commission shall develop for congressional consider2 ation a national child support guideline that is based on

3 the conference’s study of various guideline models, the de4 ficiencies of such models, and any needed improvements,

5 taking into consideration differences in the cost of living

6 in different areas of the United States. In developing such

7 guideline, the Commission shall consider indexing the

8 guideline to the cost of living, specifying minimum (rather

9 than maximum) amounts, or using other methodologies to

10 reflect such differences.

11 (c) MEMBERSHIP.—

12 (1) NUMBER; APPOINTMENT.—

13 (A) IN GENERAL.—The Commission shall

14 be composed of 9 individuals appointed jointly

15 by the Secretary of Health and Human Services

16 and the Congress, not later than January 15,

17 1995.

18 (B) QUALIFICATIONS OF MEMBERS.—

19 Members of the Commission shall be appointed

20 from among those who are able to provide ex21 pertise and experience in the evaluation and de22 velopment of child support guidelines.

23 (2) TERMS OF OFFICE.—Each member shall be

24 appointed for a term of 2 years. A vacancy in the
263

•S 2514 IS

1 Commission shall be filled in the manner in which

2 the original appointment was made.

3 (d) COMMISSION POWERS, COMPENSATION, ACCESS

4 TO INFORMATION, AND SUPERVISION.—The first sentence

5 of subparagraph (C), the first and third sentences of sub6 paragraph (D), subparagraph (F) (except with respect to

7 the conduct of medical studies), clauses (ii) and (iii) of

8 subparagraph (G), and subparagraph (H) of section

9 1886(e)(6) of the Social Security Act shall apply to the

10 Commission in the same manner in which such provisions

11 apply to the Prospective Payment Assessment Commis12 sion.

13 (e) REPORT.—Not later than 2 years after the ap14 pointment of members, the Commission shall submit to

15 the President, the Committee on Ways and Means of the

16 House of Representatives, and the Committee on Finance

17 of the Senate, a report on the results of the study de18 scribed in subsection (b) and the final assessment by the

19 Commission of issues relating to a national child support

20 guideline.

21 (f) TERMINATION.—The Commission shall terminate

22 upon the submission of the report described in subsection

23 (e).
264

•S 2514 IS

1 SEC. 468. GUIDELINE PRINCIPLES.

2 Section 467 (42 U.S.C. 667) is amended by adding

3 at the end the following:

4 ‘‘(d) The guidelines established pursuant to sub5 section (a) shall be based on, and applied in accordance

6 with, the following principles:

7 ‘‘(1) A change in the child support amount re8 sulting from the application of the guidelines since

9 the entry of the last support order is sufficient rea10 son for modification of a child support obligation

11 without the necessity of showing any other change in

12 circumstance. The State may set a minimum time13 frame between reviews of modifications based on the

14 guidelines, absent other changes in circumstances.

15 ‘‘(2) Not later than 1995, each State shall es16 tablish automatic child support order review proce17 dures based on the automated calculation of the

18 amount of support to which a child is entitled, to en19 sure that the amount is sufficient to meet the needs

20 of the child, and takes into account any changes in

21 the income of the parents of the child.

22 ‘‘(3) The State shall advise any custodial parent

23 who is not receiving aid under a State plan approved

24 under part A of the review of a child support award

25 made with respect to a child of the custodial parent,

26 of any proposed modification in the amount of the
265

•S 2514 IS

1 award based on the review, and of the right of the

2 custodial parent to decline to seek the modification.

3 ‘‘(e) The guidelines established pursuant to sub4 section (a) may consider the treatment of the following:

5 ‘‘(1) Work-related or job-training-related child

6 care expenses of either parent for the care of chil7 dren of either parent.

8 ‘‘(2) Health insurance and related uninsured

9 health care expenses, and school expenses incurred

10 on behalf of the child for whom the child support

11 order is sought.

12 ‘‘(3) Multiple family child raising obligations

13 other than those for the child for whom the child

14 support order is sought.

15 ‘‘(f) Each State must publish the guidelines estab16 lished pursuant to subsection (a).’’.

17 SEC. 469. DURATION OF SUPPORT.

18 (a) IN GENERAL.—Section 466(a) (42 U.S.C.

19 666(a)), as amended by section 466 of this Act, is amend20 ed by inserting after paragraph (17) the following:

21 ‘‘(18) Procedures under which the State—

22 ‘‘(A) imposes on 1 or both parents of a

23 child an obligation to continue to provide sup24 port for the child until not earlier than the later

25 of the date the child attains 18 years of age or
266

•S 2514 IS

1 the date the child is graduated from or is no

2 longer enrolled in secondary school or its equiv3 alent, unless the child is married or is otherwise

4 emancipated by a court of competent jurisdic5 tion;

6 ‘‘(B) provides that courts with jurisdiction

7 over child support cases may, in accordance

8 with criteria established by the State, order—

9 ‘‘(i) child support, payable to an adult

10 child, at least up to the age of 22 years for

11 a child enrolled in an accredited post12 secondary or vocational school or college

13 who is a student in good standing; and

14 ‘‘(ii) either or both parents to pay for

15 postsecondary school support based on

16 each parent’s financial ability to pay;

17 ‘‘(C) provides for child support to continue

18 beyond the child’s minority if the child is dis19 abled, unable to be self-supportive, and the dis20 ability arose during the child’s minority; and

21 ‘‘(D) provides that courts should consider

22 the effect of child support received on means23 tested governmental benefits and whether to

24 credit governmental benefits against a support

25 award amount.’’.
267

•S 2514 IS

1 (b) SENSE OF THE CONGRESS.—It is the sense of

2 the Congress that, if children receive child support while

3 obtaining postsecondary education, they will attain higher

4 levels of education affording them a greater chance to

5 break the welfare cycle.

6 SEC. 470. EVIDENCE.

7 (a) NATIONAL SUBPOENA DUCES TECUM.—Section

8 452(a) (42 U.S.C. 652(a)), as amended by sections 471(a)

9 and 452(c) of this Act, is amended—

10 (1) by striking ‘‘and’’ at the end of paragraph

11 (11);

12 (2) by striking the period at the end of para13 graph (12) and inserting a semicolon; and

14 (3) by inserting after paragraph (12) the fol15 lowing:

16 ‘‘(13) develop and distribute a national sub17 poena duces tecum, which shall be designed to be

18 used by any State or local child support agency or

19 child support litigant to reach income information on

20 the prior 12 months of income or on accumulated in21 come to date of any recipient of income;

22 ‘‘(14) establish a simplified certification process

23 and admissibility procedure for out-of-State docu24 ments in child support or parentage cases.’’.
268

•S 2514 IS

1 (b) STATE LAWS.—Section 466(a) (42 U.S.C.

2 666(a)), as amended by section 469 of this Act, is amend3 ed by inserting after paragraph (19) the following:

4 ‘‘(20) Procedures under which—

5 ‘‘(A) in a child support case in the State—

6 ‘‘(i) the subpoena duces tecum devel7 oped pursuant to section 452(a)(13) shall

8 be used, if necessary, to reach income in9 formation on the prior 12 months of in10 come or on accumulated income to date of

11 any individual;

12 ‘‘(ii) an entity that is a source of in13 come for the individual may comply with

14 such a subpoena by timely mailing the in15 formation described in the subpoena to an

16 address supplied in the subpoena;

17 ‘‘(iii) the State shall permit such a

18 subpoena to be enforced against such an

19 entity in the State, with the entity bearing

20 the burden of justifying any failure to com21 ply with the subpoena; and

22 ‘‘(iv) information supplied by an en23 tity in response to such a subpoena shall

24 be admissible to prove the truth of the in25 formation;
269

•S 2514 IS

1 ‘‘(B) a certified copy of an out-of-State

2 order, decree, or judgment related to child sup3 port or parentage shall be admitted once of4 fered in the courts of the State if the order, de5 cree, or judgment is regular on its face;

6 ‘‘(C) electronically transmitted information

7 and documents faxed to a court or administra8 tive agency that contain information related to

9 the amount of a child support obligation and

10 the terms of the order imposing the obligation

11 may be offered as evidence of the amount and

12 the terms, and electronically transmitted

13 records of payment of a child support agency

14 that are regular on their face shall be admissi15 ble as evidence in a child support or parentage

16 proceeding to prove the truth of the matter as17 serted in the records;

18 ‘‘(D) out-of-State depositions, interrog19 atories, admissions of fact, and other discovery

20 documents may be offered and shall be admit21 ted in a child support or parentage proceeding

22 to prove the truth of the matters asserted in

23 the documents if regular on their face and if

24 such documents comply with the appropriate
270

•S 2514 IS

1 discovery rule or law of the State where the dis2 covery was conducted; and

3 ‘‘(E) written, videotaped, or audiotaped

4 evidence related to a child support or parentage

5 proceeding may be offered and shall be admit6 ted to prove the truth of the matter asserted

7 therein.’’.

8 SEC. 471. TELEPHONIC APPEARANCE IN INTERSTATE

9 CASES.

10 Section 466(a) (42 U.S.C. 666(a)), as amended by

11 section 472(b) of this Act, is amended by inserting after

12 paragraph (20) the following:

13 ‘‘(21) Procedures under which the parties to an

14 interstate parentage or child support administrative

15 or judicial proceeding may appear and participate by

16 telephonic means in lieu of appearing personally.’’.

17 SEC. 472. UNIFORM TERMS IN ORDERS.

18 (a) IN GENERAL.—Section 452(a) (42 U.S.C.

19 652(a)) is amended—

20 (1) in paragraph (9), by striking ‘‘and’’ after

21 the semicolon;

22 (2) in paragraph (10), by striking the period at

23 the end of the 2nd sentence and inserting ‘‘; and’’;

24 and

25 (3) by adding at the end the following:
271

•S 2514 IS

1 ‘‘(11) not later than 12 months after the date

2 of the enactment of this paragraph, develop, in con3 junction with State executive and judicial organiza4 tions, a uniform abstract of a child support order,

5 for use by all State courts to record, with respect to

6 each child support order in the child support order

7 registry established under section 466(a)(12)—

8 ‘‘(A) the date support payments are to

9 begin under the order;

10 ‘‘(B) the circumstances upon which sup11 port payments are to end under the order;

12 ‘‘(C) the amount of child support payable

13 pursuant to the order expressed as a sum cer14 tain to be paid on a monthly basis, arrearages

15 expressed as a sum certain as of a certain date,

16 and any payback schedule for the arrearages;

17 ‘‘(D) whether the order awards support in

18 a lump sum (nonallocated) or per child;

19 ‘‘(E) if the award is in a lump sum, the

20 event causing a change in the support award

21 and the amount of any change;

22 ‘‘(F) other expenses covered by the order;

23 ‘‘(G) the names of the parents subject to

24 the order;
272

•S 2514 IS

1 ‘‘(H) the social security account numbers

2 of the parents;

3 ‘‘(I) the name, date of birth, and social se4 curity account number (if any) of each child

5 covered by the order;

6 ‘‘(J) the identification (FIPS code, name,

7 and address) of the court that issued the order;

8 ‘‘(K) any information on health care sup9 port required by the order; and

10 ‘‘(L) the party to contact if additional in11 formation is obtained.’’.

12 (b) EFFECTIVE DATE.—The amendments made by

13 subsection (a) shall take effect on the date of the enact14 ment of this Act.

15 SEC. 473. SOCIAL SECURITY NUMBERS ON MARRIAGE LI16 CENSES, DIVORCE DECREES, PARENTAGE DE17 CREES, AND BIRTH CERTIFICATES.

18 Section 466(a) (42 U.S.C. 666(a)), as amended by

19 section 472 of this Act, is amended by inserting after

20 paragraph (21) the following:

21 ‘‘(22) Procedures under which the social secu22 rity account number (if any) of—

23 ‘‘(A) each individual applying for a mar24 riage license is to be listed by the individual’s

25 name on the license;
273

•S 2514 IS

1 ‘‘(B) each party granted a divorce decree is

2 to be listed by the party’s name on the decree,

3 if any party to the decree is pregnant or a par4 ent; and

5 ‘‘(C) each individual determined to be a

6 parent of a child in an action to establish par7 entage is to be listed by the individual’s name

8 on the decree containing the determination; and

9 ‘‘(D) each parent of a child is to be listed

10 by the parent’s name on the child’s birth certifi11 cate.’’.

12 SEC. 474. ADMINISTRATIVE SUBPOENA POWER.

13 Section 466(a) (42 U.S.C. 666(a)), as amended by

14 section 474 of this Act, is amended by inserting after

15 paragraph (22) the following:

16 ‘‘(23) Procedures under which the State child

17 support enforcement agency may issue a subpoena

18 which—

19 ‘‘(A) requires the individual served to

20 produce and deliver documents to, or to appear

21 at, a court or administrative agency on a cer22 tain date; and

23 ‘‘(B) penalizes an individual for failing to

24 comply with the subpoena.’’.
274

•S 2514 IS

1 SEC. 475. LEGAL ASSISTANCE PROGRAMS.

2 (a) USE OF FUNDS FOR CHILD SUPPORT CASES.—

3 The Legal Services Corporation shall ensure that at least

4 10 percent of the funds it provides to each recipient in

5 a fiscal year be used to assist eligible clients to obtain child

6 support to which they may be entitled.

7 (b) DEFINITIONS.—For purposes of this section—

8 (1) the term ‘‘child support’’ means a payment

9 of money or provision of a benefit for the support

10 of a child, and includes periodic and lump-sum pay11 ments for current and past due economic support,

12 payments of premiums for health insurance for chil13 dren, payments for or provision of child care, and

14 payments for educational expenses; and

15 (2) the term ‘‘eligible client’’ has the meaning

16 given that term in section 1002(3) of the Legal

17 Services Corporation Act (42 U.S.C. 2996a(3)).

18 SEC. 476. INDIAN CHILD SUPPORT.

19 (a) SENSE OF THE CONGRESS.—It is the sense of the

20 Congress that—

21 (1) children residing on Indian reservations be

22 accorded the same right of support that is currently

23 afforded off-reservation children; and

24 (2) State and tribal governments should, to the

25 greatest extent possible, ensure that jurisdictional is26 sues do not prevent any Indian child, on- or off-res-
275

•S 2514 IS

1 ervation, from receiving support to which the child

2 is entitled.

3 (b) FULL FAITH AND CREDIT OF SUPPORT OR4 DERS.—The Indian Child Welfare Act of 1978 (25 U.S.C.

5 1901 et seq.) is amended by adding at the end the follow6 ing:

7 ‘‘TITLE IV—INDIAN CHILD

8 SUPPORT

9 ‘‘SEC. 401. FULL FAITH AND CREDIT.

10 ‘‘(a) Every Indian tribe shall give full faith and credit

11 to the public acts, records, and judicial proceedings of the

12 United States, every State, and every territory or posses13 sion of the United States applicable to Indian child sup14 port proceedings to the same extent that the Indian tribe

15 gives full faith and credit to public acts, records, and judi16 cial proceedings of any other entity pursuant to section

17 101(d) of this Act.

18 ‘‘(b) The United States, every State, every territory

19 or possession of the United States, and every Indian tribe

20 shall give full faith and credit to the public acts, records,

21 and judicial proceedings of any Indian tribe applicable to

22 Indian child support proceedings to the same extent that

23 such entities give full faith and credit to public acts,

24 records, and judicial proceedings of any other entity.’’.
276

•S 2514 IS

1 SEC. 477. SUPPORT ORDERS OUTREACH AND DEMONSTRA2 TIONS.

3 (a) SENSE OF THE CONGRESS.—It is the sense of the

4 Congress that States should work with community-based

5 organizations with ties to underserved populations to de6 velop better methods to reach and work with such popu7 lations to encourage the filing of more support orders.

8 (b) STATES REQUIRED TO CONDUCT SURVEYS OF

9 UNDERSERVED POPULATIONS.—

10 (1) IN GENERAL.—Part D of title IV (42

11 U.S.C. 651–669) is amended by adding at the end

12 the following:

13 ‘‘SEC. 470. STATE SURVEYS OF UNDERSERVED POPU14 LATIONS.

15 ‘‘Each State, as a condition for having a State plan

16 approved under this part, must conduct surveys to identify

17 populations underserved by child support services, and de18 velop outreach programs to serve such populations in

19 places such as child care centers, parenting classes, pre20 natal classes, and unemployment offices.’’.

21 (2) FEDERAL FINANCIAL PARTICIPATION.—Sec22 tion 455(a)(1) (42 U.S.C. 655(a)(1)) is amended—

23 (A) in subparagraph (B), by striking

24 ‘‘and’’ at the end;

25 (B) in subparagraph (C) by adding ‘‘and’’

26 at the end; and
277

•S 2514 IS

1 (C) by inserting after subparagraph (C)

2 the following:

3 ‘‘(D) equal to 90 percent of so much of the

4 sums expended during such quarter as are attrib5 utable to operating programs described in section

6 470,’’.

7 (c) MATERIALS TO ASSIST PERSONS WITH LOW LIT8 ERACY LEVELS.—The Secretary of Health and Human

9 Services shall fund demonstration projects and technical

10 assistance grants to States to develop applications and in11 formational materials directed to individuals with low lit12 eracy levels or difficulties reading English.

13 (d) REVIEW OF WRITTEN MATERIALS.—The Sec14 retary of Health and Human Services shall review all writ15 ten materials provided to persons served by the Office of

16 Child Support Enforcement to ensure that any require17 ment contained in the materials is presented clearly and

18 in a manner that is easily understandable by such persons.

19 (e) DEMONSTRATION PROJECTS TO IMPROVE CO20 ORDINATION BETWEEN CERTAIN STATE PUBLIC ASSIST21 ANCE AGENCIES.—The Secretary of Health and Human

22 Services shall make grants to States to conduct dem23 onstration projects to test various methods for improving

24 the coordination of services and case processing between

25 the State agency referred to in section 402(a)(3) of the
278

•S 2514 IS

1 Social Security Act and the State agency referred to in

2 section 454(3) of such Act.

3 (f) REFERRAL OF CUSTODIAL PARENTS TO COMMU4 NITY RESOURCES TO COMBAT DOMESTIC VIOLENCE.—

5 Section 454 (42 U.S.C. 654) is amended—

6 (1) by striking ‘‘and’’ at the end of paragraph

7 (24);

8 (2) by striking the period at the end of para9 graph (25) and inserting ‘‘; and’’; and

10 (3) by inserting after paragraph (25) the fol11 lowing:

12 ‘‘(26) provide that the agency administering the

13 plan—

14 ‘‘(A) may represent custodial parents in

15 custody cases; and

16 ‘‘(B) must refer to appropriate community

17 resources custodial parents against whom or

18 whose children violence has been threatened as

19 a result of cooperation with a State agency in

20 establishing or enforcing a child support order,

21 in accordance with procedures developed by the

22 State to reduce the risk of violence, such as ex23 empting the custodial parent from any require24 ment of face-to-face meetings with persons

25 other than from the agency.’’.
279

•S 2514 IS

1 PART F—PARENTAGE

2 SEC. 481. PARENTAGE.

3 (a) STATE PLAN.—

4 (1) IN GENERAL.—Section 454 (42 U.S.C.

5 654), as amended by section 477(f) of this Act, is

6 amended—

7 (A) by striking ‘‘and’’ at the end of para8 graph (25);

9 (B) by striking the period at the end of

10 paragraph (26) and inserting ‘‘; and’’; and

11 (C) by inserting after paragraph (26) the

12 following:

13 ‘‘(27) in order to encourage voluntary paternity

14 acknowledgement, provide for—

15 ‘‘(A) the development and distribution of

16 material at schools, hospitals (not later than 2

17 years after the effective date of this paragraph),

18 agencies administering the programs under part

19 A of this title and title XIX, prenatal health20 care providers, WIC programs, health depart21 ments, clinics, and other appropriate locations

22 that describe the benefits and responsibilities of

23 paternity establishment and the process by

24 which paternity services may be obtained;

25 ‘‘(B) outreach programs at hospitals and

26 birthing facilities and programs for prenatal
280

•S 2514 IS

1 care, child birth, and parenting, in accordance

2 with regulations which shall be prescribed by

3 the Secretary not later than 1 year after such

4 effective date; and

5 ‘‘(C) the use of consent procedures.’’.

6 (2) ENHANCED FEDERAL MATCH.—Section

7 455(a)(1) (42 U.S.C. 655(a)(1)) is amended—

8 (A) by striking ‘‘and’’ at the end of sub9 paragraph (B);

10 (B) by inserting ‘‘and’’ at the end of sub11 paragraph (C); and

12 (C) by inserting after subparagraph (C)

13 the following:

14 ‘‘(D) equal to 90 percent (rather than the

15 percentage specified in subparagraph (A)) of so

16 much of the sums expended during such quar17 ter as are attributable to costs incurred in car18 rying out section 454(27);’’.

19 (b) STATE LAW.—Section 466(a) (42 U.S.C. 666(a)),

20 as amended by section 475 of this Act, is amended by in21 serting after paragraph (23) the following:

22 ‘‘(24) Procedures under which—

23 ‘‘(A) in a parentage case, an individual

24 who signs the signature line provided for a fa25 ther on a State birth certificate is rebuttably
281

•S 2514 IS

1 presumed to be a parent of the child, and a

2 birth certificate so signed is admissible as evi3 dence of such parentage;

4 ‘‘(B) a simple, civil consent procedure is

5 available for individuals who agree to acknowl6 edge parentage of a child;

7 ‘‘(C) an acknowledgment of parentage of a

8 child—

9 ‘‘(i) may be incorporated in a wit10 nessed, written statement which includes a

11 statement that the individual—

12 ‘‘(I) understands the con13 sequences of paternity acknowledg14 ment;

15 ‘‘(II) is signing the statement

16 voluntarily; and

17 ‘‘(III) does not object to a court

18 entering an order for parentage of the

19 child based on the acknowledgment,

20 without notice before the order is is21 sued and without the requirement of

22 pleadings, service, summons, testi23 mony, or a hearing;
282

•S 2514 IS

1 ‘‘(ii) is registered as part of the proc2 ess of registering the birth certificate of

3 the child; and

4 ‘‘(iii) is admissible in court as evi5 dence of the individual’s parentage of the

6 child;

7 ‘‘(D) collection of information for purposes

8 of establishing a child support obligation may

9 be done during the parentage acknowledgment

10 process, to the maximum extent consistent with

11 the State constitution;

12 ‘‘(E) a civil procedure (and not a criminal

13 procedure) is used in parentage determination

14 cases;

15 ‘‘(F) parentage is determined by a prepon16 derance of the evidence;

17 ‘‘(G) a party may bring a parentage case

18 without joinder of the named child, and State

19 law regarding privity of the parties shall govern

20 the res judicata effect of nonjoinder;

21 ‘‘(H) the results of a parentage test are

22 rebuttably presumed to be accurate in a parent23 age case, if the test results are admitted as evi24 dence of the matter tested and are
283

•S 2514 IS

1 uncontroverted, and the test has an accuracy

2 rate of at least 98 percent;

3 ‘‘(I) a determination of parentage may be

4 made against a noncooperative party who re5 fuses to submit to a court order to submit to

6 parentage testing;

7 ‘‘(J) an objection to parentage testing or

8 to the results of a parentage test must be made

9 in writing at least 21 days before trial, and if

10 no such objection is made, the test results are

11 admissible as evidence of the matter tested,

12 without any requirement for the attendance of

13 a representative of the hospital, clinic, or par14 entage laboratory that conducted the test;

15 ‘‘(K) prenatal and post-natal parentage16 testing bills are admissible as evidence of par17 entage, without any requirement of third-party

18 foundation testimony, and any such bill is

19 prima facie evidence of the expenses incurred

20 on behalf of the child for the procedures in21 cluded in the bill;

22 ‘‘(L) a default order is entered in a parent23 age case on a proper showing of evidence of

24 parentage and of service of process on the de-
284

•S 2514 IS

1 fendant, without regard to the personal pres2 ence of the plaintiff;

3 ‘‘(M) a temporary child support order is

4 entered against an individual if—

5 ‘‘(i) the individual is presumed to be

6 the parent of the child by reason of the re7 sults of a parentage test;

8 ‘‘(ii) the individual has signed a state9 ment acknowledging parentage of the child;

10 or

11 ‘‘(iii) there is other clear and convinc12 ing evidence that the individual is a parent

13 of the child;

14 ‘‘(N) an individual determined by law to be

15 the parent of a child is precluded from claiming

16 nonparentage of the child as a defense in a

17 child support case;

18 ‘‘(O) a single action may be brought to de19 termine the parentage of a child and to estab20 lish a child support obligation with respect to

21 the child; and

22 ‘‘(P)(i) an action to determine the parent23 age of a child may be brought only in the coun24 ty in which the child resides; and
285

•S 2514 IS

1 ‘‘(ii) if the child who is the subject of a

2 parentage determination action moves to an3 other county, the action is to be transferred to

4 the other county, on request of the custodial

5 parent of the child.’’.

6 (c) SENSE OF THE CONGRESS.—It is the sense of the

7 Congress that, in a proceeding to establish paternity, once

8 paternity is alleged, the burden of proof should shift to

9 the alleged father.

10 PART G—ENFORCEMENT

11 SEC. 491. DIRECT WAGE WITHHOLDING.

12 (a) STATE LAW.—Section 466(b) (42 U.S.C. 666(b))

13 is amended by adding at the end the following:

14 ‘‘(11)(A) Upon the issuance or modification by

15 a State court or administrative agency of an order

16 imposing a child support obligation on an individual,

17 the State shall transmit to any employer of the indi18 vidual a wage withholding order developed under

19 section 452(a)(14) directing the employer to with20 hold amounts from the wages of the individual pur21 suant to the order.

22 ‘‘(B) Any individual or entity engaged in com23 merce, as a condition of doing business in the State,

24 shall, on receipt of a wage withholding order devel-
286

•S 2514 IS

1 oped under section 452(a)(14) that is regular on its

2 face and has been issued by a court of any State—

3 ‘‘(i) immediately provide a copy of the

4 order to the employee subject to the order;

5 ‘‘(ii) within 10 days after receipt of the

6 order, comply with the order;

7 ‘‘(iii) forward the amount withheld pursu8 ant to the order to the State or custodial parent

9 specified in the order; and

10 ‘‘(iii) keep records of the amounts so with11 held.

12 ‘‘(C) Such an order may be served on the in13 come source directly or by first-class mail.

14 ‘‘(D) An individual or entity who complies with

15 such an order may not be held liable for wrongful

16 withholding of income from the employee subject to

17 the order.

18 ‘‘(E)(i) The State shall impose a civil fine of

19 $1,000 on any individual or entity who receives such

20 an order, and fails to comply with the order within

21 10 days after receipt.

22 ‘‘(ii) The 10-day period described in clause (i)

23 shall be extended by any period during which the in24 dividual or entity contests the order, until the con25 test is finally decided.
287

•S 2514 IS

1 ‘‘(12) If the State transmits to an individual or

2 entity engaged in commerce in another State a wage

3 withholding order issued by the State with respect to

4 an employee of the individual or entity, and the indi5 vidual or entity contests or refuses to comply with

6 the order, the State shall send an informational copy

7 of the order to the registry established under sub8 section (a)(12) of such other State or of the State

9 from which the income of the employee is paid.

10 ‘‘(13) If an employee requests a hearing to con11 test wage withholding based on claim of a mistake

12 of fact, the hearing may be held in the State from

13 which the income is paid or in which the employee

14 is employed, and, within 45 days after the income

15 source receives the withholding order, the entity con16 ducting the hearing must adjudicate the claim. The

17 State in which the hearing is held shall provide ap18 propriate services in cases enforced under the State

19 plan to ensure that the interests of the individual to

20 whom the withheld income is to be paid are ade21 quately represented.’’.

22 (b) UNIFORM WITHHOLDING ORDER.—Section

23 452(a) (42 U.S.C. 652(a)), as amended by sections

24 471(a), 452(c), and 469(a) of this Act, is amended—
288

•S 2514 IS

1 (1) by striking ‘‘and’’ at the end of paragraph

2 (12);

3 (2) by striking the period at the end of para4 graph (13) and inserting ‘‘; and’’; and

5 (3) by inserting after paragraph (13) the fol6 lowing:

7 ‘‘(14) develop a uniform order to be used in all

8 cases in which income is to be withheld for the pay9 ment of child support, which shall contain the name

10 of the individual whose income is to be withheld, the

11 number of children covered by the order, and the in12 dividual or State to whom the withheld income is to

13 be paid, and be generic to allow for the service of

14 the order on all sources of income.’’.

15 SEC. 492. PRIORITIES IN APPLICATION OF WITHHELD

16 WAGES.

17 Section 466(b) (42 U.S.C. 666(a)), as amended by

18 section 491(a) of this Act, is amended by inserting after

19 paragraph (13) the following:

20 ‘‘(14) Procedures under which the amounts

21 withheld pursuant to a child support or wage with22 holding order are to be applied in the following

23 order:

24 ‘‘(A) To payments of support due during

25 the month of withholding.
289

•S 2514 IS

1 ‘‘(B) To payments of premiums for health

2 care insurance coverage for dependent children.

3 ‘‘(C) To payments of support due before

4 the month of withholding, and of unreimbursed

5 health-care expenses.’’.

6 SEC. 493. ADDITIONAL BENEFITS SUBJECT TO GARNISH7 MENT.

8 (a) FEDERAL DEATH BENEFITS, BLACK LUNG BEN9 EFITS, AND VETERANS BENEFITS.—Section 462(f)(2) (42

10 U.S.C. 662(f)(2)) is amended by striking ‘‘(not including’’

11 and all that follows through ‘‘compensation)’’.

12 (b) WORKERS’ COMPENSATION.—Section 462(f) (42

13 U.S.C. 662(f)) is amended—

14 (1) by striking ‘‘or’’ at the end of paragraph

15 (1);

16 (2) by striking the period at the end of para17 graph (2) and inserting ‘‘, or’’; and

18 (3) by adding at the end the following:

19 ‘‘(3) workers’ compensation benefits.’’.

20 SEC. 494. CONSUMER CREDIT PROTECTION ACT AMEND21 MENTS.

22 (a) PREEMPTION OF STATE LAWS.—Section 307 of

23 the Consumer Credit Protection Act (15 U.S.C. 1677) is

24 amended—
290

•S 2514 IS

1 (1) by striking ‘‘This’’ and inserting ‘‘(a) IN

2 GENERAL.—Subject to subsection (b), this’’;

3 (2) by striking ‘‘or’’ at the end of paragraph

4 (1);

5 (3) by striking the period at the end of para6 graph (2) and inserting ‘‘, or’’; and

7 (4) by adding at the end the following:

8 ‘‘(3) providing a cause of action, either by the

9 State or a private individual, to enforce a Federal or

10 State law related to garnishment for the purpose of

11 securing child support.

12 ‘‘(b) EXCEPTION.—Subsection (a)(1) shall not apply

13 to the laws of any State that prohibit or restrict garnish14 ments for the purpose of securing support for any per15 son.’’.

16 (b) OTHER FORMS OF INCOME.—Title III of such

17 Act (15 U.S.C. 1671 et seq.) is amended by adding at

18 the end the following:

19 ‘‘SEC. 308. OTHER FORMS OF INCOME.

20 ‘‘This title does not apply to forms of income that

21 are not earnings within the definition contained in section

22 302(a).’’.

23 (c) PRIORITY OF DEBTS.—Title III of such Act (15

24 U.S.C. 1671 et seq.), as amended by subsection (b) of this

25 section, is amended by adding at the end the following:
291

•S 2514 IS

1 ‘‘SEC. 309. PRIORITY OF DEBTS.

2 ‘‘If an individual’s disposable earnings are not suffi3 cient to pay—

4 ‘‘(1) a garnishment intended to satisfy a Fed5 eral debt; and

6 ‘‘(2) a garnishment intended to satisfy a debt

7 related to the support of any child,

8 the Federal debt shall be satisfied through garnishment

9 only after the debt related to child support has first been

10 satisfied.’’.

11 (d) ADDITIONAL INDEBTEDNESS IN ANTI-DIS12 CHARGE SECTION.—Section 304 of such Act (16 U.S.C.

13 1674) is amended by adding at the end the following:

14 ‘‘(c) The prohibition contained in subsection (a) shall

15 apply to any employee whose earnings are subject to gar16 nishment for more than one indebtedness, if the additional

17 indebtedness arises from an order for the support of a

18 child.’’.

19 SEC. 495. PROHIBITION AGAINST USE OF ELECTION OF

20 REMEDIES DOCTRINE TO PREVENT COLLEC21 TION OF CHILD SUPPORT.

22 Section 466(a) (42 U.S.C. 666(a)), as amended by

23 section 481(b) of this Act, is amended by inserting after

24 paragraph (24) the following:

25 ‘‘(25) Procedures which prohibit any State

26 court from applying the doctrine of election of rem-
292

•S 2514 IS

1 edies to prevent a custodial parent from collecting or

2 seeking to collect child support from a noncustodial

3 parent.’’.

4 SEC. 496. HOLD ON OCCUPATIONAL, PROFESSIONAL, AND

5 BUSINESS LICENSES.

6 (a) STATE HOLD BASED ON WARRANT OR SUPPORT

7 DELINQUENCY.—Section 466(a) (42 U.S.C. 666(a)), as

8 amended by section 495 of this Act, is amended by insert9 ing after paragraph (25) the following:

10 ‘‘(26) Procedures under which the State occu11 pational licensing and regulating departments and

12 agencies may not issue or renew any occupational,

13 professional, or business license of—

14 ‘‘(A) a noncustodial parent who is the sub15 ject of an outstanding failure to appear war16 rant, capias, or bench warrant related to a child

17 support proceeding that appears on the State’s

18 crime information system, until removed from

19 the system; and

20 ‘‘(B) an individual who is delinquent in the

21 payment of child support, until the obligee or a

22 State prosecutor responsible for child support

23 enforcement consents to, or a court that is re24 sponsible for the order’s enforcement orders,

25 the release of the hold on the license, or an ex-
293

•S 2514 IS

1 pedited inquiry and review is completed while

2 the individual is granted a 60-day temporary li3 cense.’’.

4 (b) FEDERAL HOLD BASED ON SUPPORT DELIN5 QUENCY.—A Federal agency may not issue or renew any

6 occupational, professional, or business license of an indi7 vidual who is delinquent in the payment of child support,

8 until the obligee, the obligee’s attorney or a State prosecu9 tor responsible for child support enforcement consents to,

10 or a court that is responsible for the order’s enforcement

11 orders, the release of the hold on the license, or an expe12 dited inquiry and review is completed while the individual

13 is granted a 60-day temporary license.

14 SEC. 497. DRIVER’S LICENSES AND VEHICLE REGISTRA15 TIONS DENIED TO PERSONS FAILING TO AP16 PEAR IN CHILD SUPPORT CASES.

17 Section 466(a) (42 U.S.C. 666(a)), as amended by

18 section 496(a) of this Act, is amended by inserting after

19 paragraph (26) the following:

20 ‘‘(27) Procedures under which the State motor

21 vehicle department—

22 ‘‘(A) may not issue or renew the driver’s li23 cense or any vehicle registration (other than

24 temporary) of any noncustodial parent who is

25 the subject of an outstanding failure to appear
294

•S 2514 IS

1 warrant, capias, or bench warrant related to a

2 child support proceeding that appears on the

3 State’s crime information system, until removed

4 from the system;

5 ‘‘(B) upon receiving notice that an individ6 ual to whom a State driver’s license or vehicle

7 registration has been issued is the subject of a

8 warrant related to a child support proceeding,

9 shall issue a show cause order to the individual

10 requesting the individual to demonstrate why

11 the individual’s driver’s license or vehicle reg12 istration should not be suspended until the war13 rant is removed by the State responsible for is14 suing the warrant; and

15 ‘‘(C) in any case in which a show cause

16 order has been issued as described in subpara17 graph (B), may grant a temporary license or

18 vehicle registration to the individual pending

19 the show cause hearing or the removal of the

20 warrant, whichever occurs first.’’.

21 SEC. 498. LIENS ON CERTIFICATES OF VEHICLE TITLE.

22 Section 466(a) (42 U.S.C. 666(a)), as amended by

23 section 497 of this Act, is amended by inserting after

24 paragraph (27) the following:
295

•S 2514 IS

1 ‘‘(28) Procedures under which the State shall

2 systematically place liens on vehicle titles for child

3 support arrearages determined under a court order

4 or an order of an administrative process established

5 under State law, using a method for updating the

6 value of the lien on a regular basis or allowing for

7 an expedited inquiry to and response from a govern8 mental payee for proof of the amount of arrears,

9 with an expedited method for the titleholder or the

10 individual owing the arrearage to contest the arrear11 age or to request a release upon fulfilling the sup12 port obligation, and under which such a lien has

13 precedence over all other encumbrances on a vehicle

14 title other than a purchase money security interest,

15 and that the individual owed the arrearage may exe16 cute on, seize, and sell the property in accordance

17 with State law.’’.

18 SEC. 499. ATTACHMENT OF BANK ACCOUNTS.

19 Section 466(a) (42 U.S.C. 666(a)), as amended by

20 section 498 of this Act, is amended by inserting after

21 paragraph (28) the following:

22 ‘‘(29) Procedures under which—

23 ‘‘(A) amounts on deposit in a bank account

24 may be seized to satisfy child support arrear25 ages determined under a court order or an
296

•S 2514 IS

1 order of an administrative process established

2 under State law, solely through an administra3 tive process, pending notice to and an expedited

4 opportunity to be heard from the account hold5 er or holders; and

6 ‘‘(B) if the account holder or holders fail

7 to successfully challenge the seizure (as deter8 mined under State law), the bank may be re9 quired to pay from the account to the entity

10 with the right to collect the arrearage the lesser

11 of—

12 ‘‘(i) the amount of the arrearage; or

13 ‘‘(ii) the amount on deposit in the ac14 count.’’.

15 SEC. 499A. SEIZURE OF LOTTERY WINNINGS, SETTLE16 MENTS, PAYOUTS, AWARDS, AND BEQUESTS,

17 AND SALE OF FORFEITED PROPERTY, TO PAY

18 CHILD SUPPORT ARREARAGES.

19 Section 466(a) (42 U.S.C. 666(a)), as amended by

20 section 499 of this Act, is amended by inserting after

21 paragraph (29) the following:

22 ‘‘(30) Procedures, in addition to other income

23 withholding procedures, under which a lien is im24 posed against property with the following effect:
297

•S 2514 IS

1 ‘‘(A) The distributor of the winnings from

2 a State lottery or State-sanctioned or tribal3 sanctioned gambling house or casino shall—

4 ‘‘(i) suspend payment of the winnings

5 from the person otherwise entitled to the

6 payment until an inquiry is made to and a

7 response is received from the State child

8 support enforcement agency as to whether

9 the person owes a child support arrearage;

10 and

11 ‘‘(ii) if there is such an arrearage,

12 withhold from the payment the lesser of

13 the amount of the payment or the amount

14 of the arrearage, and pay the amount with15 held to the agency for distribution.

16 ‘‘(B) The person required to make a pay17 ment under a policy of insurance or a settle18 ment of a claim made with respect to the policy

19 shall—

20 ‘‘(i) suspend the payment until an in21 quiry is made to and a response received

22 from the agency as to whether the person

23 otherwise entitled to the payment owes a

24 child support arrearage; and
298

•S 2514 IS

1 ‘‘(ii) if there is such an arrearage,

2 withhold from the payment the lesser of

3 the amount of the payment or the amount

4 of the arrearage, and pay the amount with5 held to the agency for distribution.

6 ‘‘(C) The payor of any amount pursuant to

7 an award, judgment, or settlement in any ac8 tion brought in Federal or State court shall—

9 ‘‘(i) suspend the payment of the

10 amount until an inquiry is made to and a

11 response is received from the agency as to

12 whether the person otherwise entitled to

13 the payment owes a child support arrear14 age; and

15 ‘‘(ii) if there is such an arrearage,

16 withhold from the payment the lesser of

17 the amount of the payment or the amount

18 of the arrearage, and pay the amount with19 held to the agency for distribution.

20 ‘‘(D) If the State seizes property forfeited

21 to the State by an individual by reason of a

22 criminal conviction, the State shall—

23 ‘‘(i) hold the property until an inquiry

24 is made to and a response is received from
299

•S 2514 IS

1 the agency as to whether the individual

2 owes a child support arrearage; and

3 ‘‘(ii) if there is such an arrearage, sell

4 the property and, after satisfying the

5 claims of all other private or public claim6 ants to the property and deducting from

7 the proceeds of the sale the attendant costs

8 (such as for towing, storage, and the sale),

9 pay the lesser of the remaining proceeds or

10 the amount of the arrearage directly to the

11 agency for distribution.

12 ‘‘(E) Any person required to make a pay13 ment in respect of a decedent shall—

14 ‘‘(i) suspend the payment until an in15 quiry is made to and a response received

16 from the agency as to whether the person

17 otherwise entitled to the payment owes a

18 child support arrearage; and

19 ‘‘(ii) if there is such an arrearage,

20 withhold from the payment the lesser of

21 the amount of the payment or the amount

22 of the arrearage, and pay the amount with23 held to the agency for distribution.’’.
300

•S 2514 IS

1 SEC. 499B. FRAUDULENT TRANSFER PURSUIT.

2 Section 466(a) (42 U.S.C. 666(a)), as amended by

3 section 499A of this Act, is amended by inserting after

4 paragraph (30) the following:

5 ‘‘(31) Procedures requiring that, in any case re6 lated to child support, any transfer of property by

7 an individual who owes a child support arrearage

8 shall be presumed to be made with the intent to

9 avoid payment of the arrearage, and may be rebut10 ted by evidence to the contrary.’’.

11 SEC. 499C. FULL IRS COLLECTION.

12 (a) SENSE OF THE CONGRESS.—It is the sense of the

13 Congress that the Commissioner of the Internal Revenue

14 Services should instruct the field offices and agents of the

15 Internal Revenue Service to give a high priority to re16 quests for the use of full collection in delinquent child sup17 port cases, and to set uniform standards for full collection

18 to ensure its expeditious and effective implementation.

19 (b) SIMPLIFIED PROCEDURE.—The Secretary of the

20 Treasury, in consultation with the Secretary of Health and

21 Human Services, shall by regulation simplify the full col22 lection process under section 6305 of the Internal Revenue

23 Code of 1986 and reduce the amount of child support ar24 rearage needed before an individual may apply for collec25 tion under such section.
301

•S 2514 IS

1 SEC. 499D. TAX REFUND OFFSET PROGRAM EXPANDED TO

2 COVER NON-AFDC POST-MINOR CHILDREN.

3 Section 464(c) (42 U.S.C. 664(c)) is amended—

4 (1) by striking ‘‘(1) Except as provided in para5 graph (2), as’’ and inserting ‘‘As’’;

6 (2) by inserting ‘‘(whether or not a minor)’’

7 after ‘‘a child’’ each place such term appears; and

8 (3) by striking paragraphs (2) and (3).

9 SEC. 499E. ATTACHMENT OF PUBLIC AND PRIVATE RETIRE10 MENT FUNDS.

11 Section 466(a) (42 U.S.C. 666(a)), as amended by

12 section 499B of this Act, is amended by inserting after

13 paragraph (31) the following:

14 ‘‘(32) Procedures under which an individual

15 owed a child support arrearage (determined under a

16 court order or an order of an administrative process

17 established under State law) may, notwithstanding

18 section 401(a)(13) of the Internal Revenue Code of

19 1986, attach any interest in any public or private re20 tirement plan of the individual who owes the sup21 port, without the requirement of a separate court

22 order, and with notice and an expedited hearing pro23 vided if requested by the individual who owes the

24 support.’’.
302

•S 2514 IS

1 SEC. 499F. REPORTING OF CHILD SUPPORT ARREARAGES

2 TO CREDIT BUREAUS.

3 Section 466(a)(7)(A) (42 U.S.C. 666(a)(7)(A)) is

4 amended by striking ‘‘$1,000’’ and inserting ‘‘the amount

5 of the monthly support obligation’’.

6 SEC. 499G. STATUTES OF LIMITATION.

7 (a) IN GENERAL.—Section 466(a) (42 U.S.C.

8 666(a)), as amended by section 499E of this Act, is

9 amended by inserting after paragraph (32) the following:

10 ‘‘(33) Procedures which permit the enforcement

11 of any child support order until the child attains at

12 least 30 years of age.’’.

13 (b) EFFECTIVE DATE.—The amendment made by

14 this section shall apply to orders entered before, on, and

15 after the date of the enactment of this Act.

16 SEC. 499H. INTEREST.

17 Section 466(a) (42 U.S.C. 666(a)), as amended by

18 section 499G(a) of this Act, is amended by inserting after

19 paragraph (33) the following:

20 ‘‘(34) Procedures under which the State child

21 support enforcement agency must assess and collect

22 interest on all child support judgments, at the rate

23 determined for interest on money judgments, in ad24 dition to any late payment fee imposed by the State

25 under section 454(21).’’.
303

•S 2514 IS

1 SEC. 499I. BANKRUPTCY.

2 (a) DEFINITION.—Section 101 of title 11, United

3 States Code, is amended by inserting after paragraph (12)

4 the following:

5 ‘‘(12a) ‘debt for child support’ means a debt to

6 a child for maintenance for or support of the child

7 within the meaning of section 523(a)(5).’’.

8 (b) EXCEPTION FROM AUTOMATIC STAY.—Section

9 362(b) of such title is amended—

10 (1) by inserting ‘‘(A)’’ after ‘‘(2);

11 (2) by adding ‘‘or’’ after the semicolon; and

12 (3) by adding at the end the following new

13 paragraph:

14 ‘‘(B) under subsection (a), of the commence15 ment or continuation of a civil action or administra16 tive proceeding against the debtor—

17 ‘‘(i) to establish parentage;

18 ‘‘(ii) to establish, review, adjust, or modify

19 a judgment or order creating a debt for child

20 support; or

21 ‘‘(iii) to enforce or collect on a judgment or

22 order issued in such an action or proceeding;’’.

23 (c) TREATMENT OF DEBT FOR CHILD SUPPORT IN

24 PROCEEDINGS UNDER CHAPTERS 11, 12, AND 13.—

25 (1) CHAPTER 11.—Section 1123(a) of such title

26 is amended—
304

•S 2514 IS

1 (A) by striking ‘‘and’’ at the end of para2 graph (6);

3 (B) by striking the period at the end of

4 paragraph (7) and inserting ‘‘; and’’; and

5 (C) by adding at the end the following new

6 paragraph:

7 ‘‘(8) provide for the full payment when due of

8 debts for child support, unless the parent in custody

9 or guardian of the child agrees otherwise.’’.

10 (2) CHAPTER 12.—Section 1222(a) of such title

11 is amended—

12 (A) by striking ‘‘and’’ at the end of para13 graph (2);

14 (B) by striking the period at the end of

15 paragraph (3) and inserting ‘‘; and’’; and

16 (C) by adding at the end the following new

17 paragraph:

18 ‘‘(4) provide for the full payment when due of

19 debts for child support, unless the parent in custody

20 or guardian of the child agrees otherwise.’’.

21 (3) CHAPTER 13.—Section 1322(a) of such title

22 is amended—

23 (A) by striking ‘‘and’’ at the end of para24 graph (2);
305

•S 2514 IS

1 (B) by striking the period at the end of

2 paragraph (3) and inserting ‘‘; and’’; and

3 (C) by adding at the end the following new

4 paragraph:

5 ‘‘(4) provide for the full payment when due of

6 debts for child support, unless the parent in custody

7 or guardian of the child agrees otherwise.’’.

8 (d) ASSERTION OF CLAIM FOR CHILD SUPPORT.—

9 (1) IN GENERAL.—Subchapter I of chapter 5 of

10 such title is amended by adding at the end the fol11 lowing:

12 ‘‘§ 511. Assertion of claim for child support

13 ‘‘(a) IN GENERAL.—A claim for payment of a debt

14 for child support may be asserted by the filing of a claim

15 form that describes the debt.

16 ‘‘(b) FEE.—No fee shall be charged for the filing of

17 a claim described in subsection (a).

18 ‘‘(c) REQUIREMENTS FOR APPEARANCE.—A claim

19 described in subsection (a) may be made in any court by

20 a person appearing—

21 ‘‘(1) in proper person; or

22 ‘‘(2) through an attorney admitted to practice

23 in any district court, without the attorney’s being re24 quired to meet any admission requirements other
306

•S 2514 IS

1 than those applicable in the district in which the at2 torney is admitted to practice.’’.

3 (2) BANKRUPTCY RULES.—Pursuant to section

4 2705 of title 28, United States Code, the Bank5 ruptcy Rules shall be amended as necessary to im6 plement section 511 of title 11, United States Code,

7 as added by paragraph (1) of this subsection; until

8 the Bankruptcy Rules are so amended, any provision

9 of the Bankruptcy Rules or the rules of any court

10 that is inconsistent with that section is superseded

11 by that section.

12 (e) CLARIFICATION OF THE NONDISCHARGEABILITY

13 OF STATE PUBLIC DEBTS AND ASSIGNED CHILD SUP14 PORT BASED ON THE PROVISION OF EXPENDITURES

15 UNDER PARTS A AND E OF TITLE IV OF THE SOCIAL

16 SECURITY ACT.—Section 523 of title 11, United States

17 Code, is amended by adding at the end the following:

18 ‘‘(f) For the purposes of subsection (a)(5), a debt to

19 a child of the debtor for maintenance for or support of

20 the child includes State public debts and assigned child

21 support based on the provision of expenditures under

22 parts A and E of title IV of the Social Security Act (43

23 U.S.C. 401 et seq. and 470 et seq.).’’.
307

•S 2514 IS

1 SEC. 499J. FEDERAL GOVERNMENT COOPERATION IN EN2 FORCEMENT OF SUPPORT OBLIGATIONS OF

3 MEMBERS AND FORMER MEMBERS OF THE

4 ARMED FORCES.

5 (a) AVAILABILITY OF CURRENT LOCATOR INFORMA6 TION.—

7 (1) MAINTENANCE OF ADDRESS INFORMA8 TION.—Each worldwide personnel locator service of

9 the Armed Forces and each personnel locator service

10 of the Armed Forces maintained for a military in11 stallation shall include the residential address of

12 each member of the Armed Forces listed in such

13 service. Within 30 days after a change of duty sta14 tion or residential address of a member listed in a

15 locator service, the Secretary concerned shall update

16 the locator service to indicate the new residential ad17 dress of the member.

18 (2) AVAILABILITY OF INFORMATION.—The Sec19 retary of Defense shall prescribe regulations to make

20 information regarding the residential address of a

21 member of the Armed Forces available, on request,

22 to any authorized person for the purposes of part D

23 of title IV of the Social Security Act.

24 (3) DEFINITIONS.—For purposes of this sub25 section:
308

•S 2514 IS

1 (A) The term ‘‘authorized person’’ has the

2 meaning given that term in section 453(c) of

3 the Social Security Act (42 U.S.C. 653(c)).

4 (B) The term ‘‘Secretary concerned’’ has

5 the meaning given that term in section

6 101(a)(9) of title 10, United States Code.

7 (b) FACILITATING THE GRANTING OF LEAVE FOR

8 ATTENDANCE AT HEARINGS.—

9 (1) REGULATIONS REQUIRED.—The Secretary

10 concerned shall prescribe regulations to facilitate the

11 granting of a leave of absence to a member of the

12 Armed Forces under the jurisdiction of that Sec13 retary when necessary for the member to attend a

14 hearing of a court that is conducted in connection

15 with a civil action—

16 (A) to determine whether the member is a

17 natural parent of a child; or

18 (B) to determine an obligation of the mem19 ber to provide child support.

20 (2) WAIVER AUTHORITY.—The regulations pre21 scribed under paragraph (1) may authorize a waiver

22 of the applicability of the regulations to a member

23 of the Armed Forces when—

24 (A) the member is serving in an area of

25 combat operations; or
309

•S 2514 IS

1 (B) such a waiver is otherwise necessary in

2 the national security interest of the United

3 States.

4 (3) DEFINITIONS.—For purposes of this sub5 section:

6 (A) The term ‘‘court’’ has the meaning

7 given that term in section 1408(a) of title 10,

8 United States Code.

9 (B) The term ‘‘child support’’ has the

10 meaning given such term in section 462 of the

11 Social Security Act (42 U.S.C. 662).

12 (C) The term ‘‘Secretary concerned’’ has

13 the meaning given that term in section

14 101(a)(9) of title 10, United States Code.

15 (c) PAYMENT OF MILITARY RETIRED PAY IN COM16 PLIANCE WITH COURT ORDERS.—

17 (1) DATE OF CERTIFICATION OF COURT

18 ORDER.—Section 1408 of title 10, United States

19 Code, is amended—

20 (A) by redesignating subsection (i) as sub21 section (j); and

22 (B) by inserting after subsection (h) the

23 following new subsection:

24 ‘‘(i) CERTIFICATION DATE.—It is not necessary that

25 the date of a certification of the authenticity or complete-
310

•S 2514 IS

1 ness of a copy of a court order for child support received

2 by the Secretary concerned for the purposes of this section

3 be recent in relation to the date of receipt.’’.

4 (2) PAYMENTS CONSISTENT WITH ASSIGN5 MENTS OF RIGHTS TO STATES.—

6 (A) AUTHORITY.—Subsection (d)(1) of

7 such section is amended by inserting after the

8 first sentence the following: ‘‘In the case of a

9 spouse or former spouse who, pursuant to sec10 tion 402(a)(26) of the Social Security Act (42

11 U.S.C. 602(26)), assigns to a State the rights

12 of the spouse or former spouse to receive sup13 port, the Secretary concerned may make the

14 child support payments referred to in the pre15 ceding sentence to that State in amounts con16 sistent with the assignment of rights.’’.

17 (B) RULE OF CONSTRUCTION.—Subsection

18 (c)(2) of such section is amended—

19 (i) by inserting after the first sentence

20 the following: ‘‘The second sentence of sub21 section (d)(1) shall not be construed to

22 create any such right, title, or interest.’’;

23 (ii) by inserting ‘‘(A)’’ after ‘‘(2)’’;

24 and
311

•S 2514 IS

1 (iii) by designating the last sentence

2 as subparagraph (B) and conforming the

3 margins accordingly.

4 (3) ARREARAGES OWED BY MEMBERS OF THE

5 UNIFORMED SERVICES.—Part D of title IV (42

6 U.S.C. 651–669) is amended by inserting after sec7 tion 465 the following:

8 ‘‘SEC. 465A. PAYMENT OF CHILD SUPPORT ARREARAGES

9 OWED BY MEMBERS OF THE UNIFORMED

10 SERVICES.

11 ‘‘Any authority, requirement, or procedure provided

12 in this part or section 1408 of title 10, United States

13 Code, that applies to the payment of child support owed

14 by a member of the uniformed services (as defined in sec15 tion 101 of title 37, United States Code) shall apply to

16 the payment of child support arrearages as well as to

17 amounts of child support that are currently due.’’.

18 SEC. 499K. STATES REQUIRED TO ENACT THE UNIFORM

19 INTERSTATE FAMILY SUPPORT ACT.

20 (a) IN GENERAL.—Section 466 (42 U.S.C. 666) is

21 amended by adding at the end the following:

22 ‘‘(f) In order to satisfy section 454(20)(A), each

23 State must have in effect laws which—

24 ‘‘(1) adopt verbatim the officially approved ver25 sion of the Uniform Interstate Family Support Act
312

•S 2514 IS

1 adopted by the National Conference of Commis2 sioners on Uniform State Laws in August 1992; and

3 ‘‘(2) require the courts of the State to recognize

4 according to its terms an order issued by a court of

5 any other State adjudicating parentage of an indi6 vidual over whom the court of such other State has

7 exercised personal jurisdiction.’’.

8 (b) EFFECTIVE DATE.—The amendment made by

9 subsection (a) shall apply to payments under part D of

10 title IV of the Social Security Act for calendar quarters

11 ending 2 or more years after the date of the enactment

12 of this Act.

13 SEC. 499L. IRS RECONCILIATION PROCESS.

14 (a) IN GENERAL.—The Comptroller General and the

15 Secretary of the Treasury shall jointly conduct a study

16 of the feasibility of a procedure under which—

17 (1) past-due child support is collected from the

18 taxpayer owing such support by increasing the tax19 payer’s tax liability for a taxable year by the past20 due child support for such taxable year, and

21 (2) the Internal Revenue Service remits the col22 lected past-due child support to the individual or

23 governmental agency entitled to receive it.

24 (b) FORM.—As part of the study, the Secretary of

25 the Treasury shall develop an appropriate form which
313

•S 2514 IS

1 could be filed with a taxpayer’s income tax return and

2 which shows—

3 (1) the child support required to be paid by the

4 taxpayer during the taxable year,

5 (2) the unpaid amount of such support as of

6 the time of filing the taxpayer’s income tax return

7 for such taxable year, and

8 (3) the name and address of the individual or

9 governmental agency entitled to receive any payment

10 of such unpaid amount.

11 (c) REPORT.—The report of such study shall be sub12 mitted to Congress not later than 1 year after the date

13 of the enactment of this Act.

14 SEC. 499M. DENIAL OF PASSPORTS TO NONCUSTODIAL

15 PARENTS SUBJECT TO STATE ARREST WAR16 RANTS IN CASES OF NONPAYMENT OF CHILD

17 SUPPORT.

18 The Secretary of State is authorized to refuse a pass19 port or revoke, restrict, or limit a passport in any case

20 in which the Secretary of State determines or is informed

21 by competent authority that the applicant or passport

22 holder is a noncustodial parent who is the subject of an

23 outstanding State warrant of arrest for nonpayment of

24 child support, where the amount in controversy is not less

25 than $10,000.
314

•S 2514 IS

1 SEC. 499N. DENIAL OF FEDERAL BENEFITS, LOANS, GUAR2 ANTEES, AND EMPLOYMENT TO CERTAIN

3 PERSONS WITH LARGE CHILD SUPPORT AR4 REARAGES.

5 (a) BENEFITS, LOANS, AND GUARANTEES.—Not6 withstanding any other provision of law, each agency or

7 instrumentality of the Federal Government may not,

8 under any program that the agency or instrumentality su9 pervises or administers, provide a benefit to, make a loan

10 to, or provide any guarantee for the benefit of, any per11 son—

12 (1) whose child support arrearages, determined

13 under a court order or an order of an administrative

14 process established under State law, exceed $1,000;

15 and

16 (2) who is not in compliance with a plan or an

17 agreement to repay the arrearages.

18 (b) EMPLOYMENT.—

19 (1) IN GENERAL.—Notwithstanding any other

20 provision of law, an individual shall be considered in21 eligible to accept employment in a position in the

22 Federal Government if—

23 (A) such individual has child support ar24 rearages, determined under a court order or an

25 order of an administrative process established

26 under State law, exceeding $1,000; and
315

•S 2514 IS

1 (B) such individual is not in compliance

2 with a plan or agreement to repay the arrear3 ages.

4 (2) REGULATIONS.—Regulations to carry out

5 paragraph (1) shall—

6 (A) with respect to positions in the execu7 tive branch, be prescribed by the President (or

8 his designee);

9 (B) with respect to positions in the legisla10 tive branch, be prescribed jointly by the Presi11 dent pro tempore of the Senate and the Speak12 er of the House of Representatives (or their

13 designees); and

14 (C) with respect to positions in the judicial

15 branch, be prescribed by the Chief Justice of

16 the United States (or his designee).

17 (3) CHILD SUPPORT DEFINED.—For purposes

18 of this subsection, the term ‘‘child support’’ has the

19 meaning given such term in section 462 of the

20 Social Security Act.
316

•S 2514 IS

1 SEC. 499O. STATES REQUIRED TO ORDER COURTS TO

2 ALLOW ASSIGNMENT OF LIFE INSURANCE

3 BENEFITS TO SATISFY CHILD SUPPORT AR4 REARAGES.

5 Section 466(a) (42 U.S.C. 666(a)), as amended by

6 section 499H of this Act, is amended by inserting after

7 paragraph (34) the following:

8 ‘‘(35) Procedures allowing State courts to—

9 ‘‘(A) order the issuer of a life insurance

10 policy to change the beneficiary provisions of

11 the policy to effect an assignment of the bene12 fits payable to a beneficiary under the policy, in

13 whole or in part, to a child to satisfy a child

14 support arrearage, determined under a court

15 order or an order of an administrative process

16 established under State law, owed by the bene17 ficiary with respect to the child; and

18 ‘‘(B) prohibit the sale, assignment, or

19 pledge as collateral of the policy, in whole or in

20 part, by the beneficiary of the policy.’’.

21 SEC. 499P. INTERESTS IN JOINTLY HELD PROPERTY SUB22 JECT TO ASSIGNMENT TO SATISFY CHILD

23 SUPPORT ARREARAGES.

24 Section 466(a) (42 U.S.C. 666(a)), as amended by

25 section 499O of this Act, is amended by inserting after

26 paragraph (35) the following:
317

•S 2514 IS

1 ‘‘(36) Procedures allowing State courts to order

2 the assignment of an interest in jointly held property

3 to an individual owed a child support arrearage (de4 termined under a court order or an order of an ad5 ministrative process established under State law) by

6 a holder of an interest in the property, to the extent

7 of the arrearage.’’.

8 SEC. 499Q. INTERNATIONAL CHILD SUPPORT ENFORCE9 MENT.

10 (a) SENSE OF THE CONGRESS THAT THE UNITED

11 STATES SHOULD RATIFY THE UNITED NATIONS CON12 VENTION OF 1956.—It is the sense of the Congress that

13 the United States should ratify the United Nations Con14 vention of 1956.

15 (b) TREATMENT OF INTERNATIONAL CHILD SUP16 PORT CASES AS INTERSTATE CASES.—Section 454 (42

17 U.S.C. 654), as amended by section 481 of this Act, is

18 amended—

19 (1) by striking ‘‘and’’ at the end of paragraph

20 (26);

21 (2) by striking the period at the end of para22 graph (27) and inserting ‘‘; and’’; and

23 (3) by inserting after paragraph (27) the

24 following:
318

•S 2514 IS

1 ‘‘(28) provide that the State must treat inter2 national child support cases in the same manner as

3 the State treats interstate child support cases.’’.

4 PART H—COLLECTION AND DISTRIBUTION

5 SEC. 499R. PRIORITIES IN DISTRIBUTION OF COLLECTED

6 CHILD SUPPORT.

7 (a) STATE DISTRIBUTION PLAN.—Section 457 (42

8 U.S.C. 657) is amended by adding at the end the follow9 ing:

10 ‘‘(e) Beginning on September 1, 1994, the amounts

11 that a State collects as child support (including interest)

12 pursuant to a plan approved under this part, other than

13 amounts so collected through a tax refund offset, shall

14 (subject to subsection (d)) be paid—

15 ‘‘(1) first to the individual owed the support or

16 (if the individual assigned to the State the payment

17 of the support) to the State, to the extent necessary

18 to satisfy the current month’s support obligation;

19 ‘‘(2) then to the individual owed the support, to

20 the extent necessary to satisfy any arrearage that

21 accrued after assistance with respect to the child

22 under this title ended;

23 ‘‘(3) then, at the option of the State—

24 ‘‘(A) to the individual owed the support, to

25 the extent necessary to satisfy any arrearage
319

•S 2514 IS

1 that accrued before assistance was provided

2 with respect to the child under this title; or

3 ‘‘(B) to the State, to the extent necessary

4 to reimburse the State for assistance provided

5 with respect to the child under this title (with6 out interest); and

7 ‘‘(4) then to other States, to the extent nec8 essary to reimburse such other States for assistance

9 provided with respect to the child under this title

10 (without interest), in the order in which such assist11 ance was provided.’’.

12 (b) STUDY AND PILOT PROJECTS.—

13 (1) IN GENERAL.—The Comptroller General of

14 the United States shall conduct studies and pilot

15 projects of systems under which States would be re16 quired to pay the child support collected pursuant to

17 a State plan approved under part D of title IV of

18 the Social Security Act to the individuals to whom

19 the support is owed before making any payment to

20 reimburse any State for assistance provided with re21 spect to the child under part A of such title.

22 (2) REPORT TO THE CONGRESS.—Within 3

23 years after the date of the enactment of this Act, the

24 Comptroller General shall submit to the Committee

25 on Ways and Means of the House of Representatives
320

•S 2514 IS

1 and the Committee on Finance of the Senate a re2 port on each study and pilot project conducted pur3 suant to paragraph (1), including a cost-benefit

4 analysis and an analysis of the costs that would be

5 avoided under the program of aid to families with

6 dependent children under part A of title IV of the

7 Social Security Act, the program of medical assist8 ance under title XIX of such Act, and the food

9 stamp program under the Food Stamp Act of 1977,

10 if the various systems studied were implemented.

11 (3) SENSE OF THE CONGRESS.—It is the sense

12 of the Congress that, if the report submitted pursu13 ant to paragraph (2) demonstrates that there would

14 be a net benefit to society if a system described in

15 paragraph (1) were implemented, then Federal law

16 should provide that States implement the system.

17 (c) REVISION OF FEDERAL INCOME TAX REFUND

18 OFFSET.—Section 6402 of the Internal Revenue Code of

19 1986 (relating to authority to make credits or refunds)

20 is amended—

21 (1) in subsection (c), by striking ‘‘after any

22 other reductions allowed by law (but before’’ and in23 serting ‘‘before any other reductions allowed by law

24 (and before’’; and
321

•S 2514 IS

1 (2) in subsection (d), by striking ‘‘with respect

2 to past-due support collected pursuant to an assign3 ment under section 402(a)(26) of the Social Security

4 Act’’.

5 (d) $50 DISREGARDED FOR ALL MEANS-TESTED

6 PROGRAMS.—Section 457(b)(1) (42 U.S.C. 657(b)(1)) is

7 amended by inserting ‘‘under this part or under any other

8 Federal program which determines eligibility for or the

9 amount of assistance based on the income or assets of the

10 applicant for or recipient of the assistance’’ after ‘‘during

11 such month’’.

12 (e) FILL-THE-GAP POLICIES ALLOWED.—Section

13 402(a)(28) (42 U.S.C. 602(a)(28)) is amended by striking

14 the open parenthesis and all that follows through the close

15 parenthesis.

16 SEC. 499S. STATE CLAIMS AGAINST NONCUSTODIAL PAR17 ENT LIMITED TO ASSISTANCE PROVIDED TO

18 THE CHILD.

19 Section 466(a) (42 U.S.C. 666(a)), as amended by

20 section 499P of this Act, is amended by inserting after

21 paragraph (36) the following:

22 ‘‘(37)(A) Procedures under which any claims

23 the State may have against a noncustodial parent

24 for a child’s portion of the assistance provided under

25 a State plan approved under part A shall not exceed
322

•S 2514 IS

1 the amount specified as child support under a court

2 or administrative order.

3 ‘‘(B) As used in subparagraph (A), the term

4 ‘child’s portion’ means the assistance that would

5 have been provided with respect to the child if the

6 needs of the caretaker relative of the child had not

7 been taken into account in making the determination

8 with respect to the child’s family under section

9 402(a)(7).’’.

10 SEC. 499T. FEES FOR NON-AFDC CLIENTS.

11 (a) IN GENERAL.—Section 454(6) (42 U.S.C.

12 654(6)) is amended—

13 (1) in subparagraph (B), by striking ‘‘or recov14 ered’’ and all that follows through ‘‘program)’’;

15 (2) in subparagraph (C), by inserting ‘‘on the

16 parent who owes the child or spousal support obliga17 tion involved’’ after ‘‘imposed’’;

18 (3) in subparagraph (D), by striking ‘‘individ19 ual who’’ and inserting ‘‘the noncustodial parent if

20 the child whose parentage is to be determined

21 through the tests’’; and

22 (4) in subparagraph (E), by striking all that

23 follows ‘‘may be collected’’ and inserting ‘‘from the

24 parent who owes the child or spousal support obliga-
323

•S 2514 IS

1 tion involved, but only after all current and past-due

2 support and interest charges have been collected’’.

3 (b) PUBLICATION OF FEE SCHEDULES.—Section

4 454(10) (42 U.S.C. 654(10)) is amended by inserting ‘‘,

5 and shall publish guidelines and schedules of fees which

6 may be imposed under paragraph (6), and which shall be

7 reasonable’’ before the semicolon.

8 SEC. 499U. COLLECTION AND DISBURSEMENT POINTS FOR

9 CHILD SUPPORT.

10 Section 454 (42 U.S.C. 654), as amended by section

11 499Q(b) of this Act, is amended—

12 (1) by striking ‘‘and’’ at the end of paragraph

13 (27);

14 (2) by striking the period at the end of para15 graph (28) and inserting ‘‘; and’’; and

16 (3) by inserting after paragraph (28) the fol17 lowing:

18 ‘‘(29) provide for only 1 location, or several

19 local or regional locations for the collection of, ac20 counting for, and disbursement of child support in

21 cases enforced under the State plan under this

22 part.’’.
324

•S 2514 IS

1 SEC. 499V. SENSE OF THE CONGRESS THAT STATES

2 SHOULD ENCOURAGE PARENTS TO USE THE

3 STATE CHILD SUPPORT AGENCY TO COLLECT

4 AND PROCESS CHILD SUPPORT PAYMENTS.

5 It is the sense of the Congress that States should en6 courage all parents to use the state child support agency

7 to process and distribute child support payments in order

8 to establish an official record of such payments.

9 PART I—FEDERAL ROLE

10 SEC. 499W. PLACEMENT AND ROLE OF THE OFFICE OF

11 CHILD SUPPORT ENFORCEMENT.

12 Section 452(a) (42 U.S.C. 652(a)), as amended by

13 section 491(b) of this Act, is amended—

14 (1) in the matter preceding paragraph (1), by

15 striking ‘‘, under the direction’’ and all that follows

16 through ‘‘and who’’ and inserting ‘‘which shall be

17 known as the Office of Child Support Enforcement,

18 shall be under the direction of an Assistant Sec19 retary appointed by the President with the advice

20 and consent of the Senate, and shall have its own

21 legal counsel. The Assistant Secretary shall report

22 directly to the Secretary and’’;

23 (2) in paragraph (10)—

24 (A) in subparagraph (A), by inserting

25 ‘‘using a methodology that reflects cost-avoid-
325

•S 2514 IS

1 ance as well as cost-recovery’’ after ‘‘the States

2 and the Federal Government’’;

3 (B) by redesignating subparagraphs (H)

4 and (I) as subparagraphs (I) and (J), respec5 tively; and

6 (C) by inserting after subparagraph (G)

7 the following:

8 ‘‘(H) the budgetary allocation of the $50

9 pass through equally between part A and this

10 part;’’;

11 (3) by striking ‘‘and’’ at the end of paragraph

12 (13);

13 (4) by striking the period at the end of para14 graph (14) and inserting ‘‘; and’’; and

15 (5) by inserting after paragraph (14) the fol16 lowing:

17 ‘‘(15) initiate and actively pursue with other

18 Federal agencies, such as the Department of De19 fense, coordinated efforts on Federal legislation.’’.

20 SEC. 499X. TRAINING.

21 (a) FEDERAL TRAINING ASSISTANCE.—Section

22 452(a)(7) (42 U.S.C. 652(a)(7)) is amended by inserting

23 ‘‘and training’’ after ‘‘technical assistance’’.
326

•S 2514 IS

1 (b) STATE TRAINING PROGRAM.—Section 454 (42

2 U.S.C. 654), as amended by section 499U of this Act, is

3 amended—

4 (1) by striking ‘‘and’’ at the end of paragraph

5 (28);

6 (2) by striking the period at the end of para7 graph (29) and inserting ‘‘; and’’; and

8 (3) by inserting after paragraph (29) the fol9 lowing:

10 ‘‘(30) provide that the State will develop and

11 implement a training program under which training

12 is to be provided not less frequently than annually

13 to all personnel performing functions under the

14 State plan.’’.

15 (c) REPORT.—Section 452(a)(10) (42 U.S.C.

16 652(a)(10)), as amended by section 499W(2) of this Act,

17 is amended by redesignating subparagraphs (I) and (J)

18 as subparagraphs (J) and (K), respectively, and by insert19 ing after subparagraph (H) the following:

20 ‘‘(I) the training activities at the Federal

21 and State levels, the training audit, and the

22 amounts expended on training;’’.

23 SEC. 499Y. STAFFING.

24 (a) STUDIES.—The Secretary of Health and Human

25 Services shall conduct and, not later than 1 year after the
327

•S 2514 IS

1 date of the enactment of this Act, complete staffing stud2 ies for each State child support enforcement program, in3 cluding each agency and court involved in the child sup4 port process.

5 (b) REPORT TO THE CONGRESS.—Within 90 days

6 after the end of the 1-year period described in subsection

7 (a), the Secretary shall report to the Committee on Ways

8 and Means of the House of Representatives and the Com9 mittee on Finance of the Senate, and to each State, the

10 results of the studies required by subsection (a).

11 (c) IMPLEMENTATION.—The Secretary of Health and

12 Human Services shall reduce by 2 percent the amount oth13 erwise payable to a State pursuant to section 455(a)(1)(A)

14 of the Social Security Act for any calendar quarter ending

15 2 or more years after the State receives a report transmit16 ted pursuant to subsection (b), if the Secretary determines

17 that, during the quarter, the State has not implemented

18 the staffing levels recommended in the report.

19 SEC. 499Z. DEMONSTRATION PROJECTS TO TEST ALTER20 NATIVE APPROACHES TO INCENTIVE FUND21 ING FOR STATE CHILD SUPPORT PROGRAMS.

22 (a) IN GENERAL.—The Secretary of Health and

23 Human Services shall authorize 3 States to carry out dem24 onstration projects under which—
328

•S 2514 IS

1 (1) the State is to implement the State plan ap2 proved under part D of title IV of the Social Secu3 rity Act so as to promote quality control and provide

4 incentives for enforcement of health care support;

5 (2) in lieu of applying subsections (b) and (c)

6 of section 458 of such Act to the States, the incen7 tive payment to a State for a fiscal year shall be—

8 (A) not less than 65 percent of the total

9 amount expended to carry out the plan during

10 the fiscal year if the performance of the State

11 in implementing the plan meets such minimum

12 performance standards as the Secretary shall

13 prescribe by regulation; and

14 (B) not more than 90 percent of such total

15 amount if the performance significantly exceeds

16 the standards; and

17 (3) a payment to a State under this subsection

18 is deemed a payment to the State under such section

19 458.

20 (b) REPORT.—The Secretary of Health and Human

21 Services and the Comptroller General of the United States

22 shall evaluate each demonstration project carried out

23 under subsection (a) and report to the Committee on Ways

24 and Means of the House of Representatives and the Com-
329

•S 2514 IS

1 mittee on Finance of the Senate the results and their rec2 ommendations.

3 (c) HEALTH CARE SUPPORT INCLUDED IN INCEN4 TIVE PAYMENT FORMULA.—Section 458 (42 U.S.C. 658)

5 is amended by adding at the end the following:

6 ‘‘(f) For purposes of this section, the term ‘support’

7 includes premiums paid for health insurance coverage pur8 suant to a support order.’’.

9 (d) MINIMUM STATE FUNDING OF CHILD SUPPORT

10 ACTIVITIES.—The Secretary of Health and Human Serv11 ices shall reduce by 2 percent the amount otherwise pay12 able to a State pursuant to section 455(a)(1)(A) of the

13 Social Security Act for any of the 5 fiscal years that begin

14 after the date of the enactment of this Act (in this sub15 section referred to as ‘‘investment years’’), if the Secretary

16 determines that, during the investment year, the State has

17 not expended on the program under the State plan ap18 proved under part D of title IV of such an amount equal

19 to the sum of—

20 (1) the amount the State expends on the pro21 gram during the fiscal year in which this Act be22 comes law (in this subsection referred to as the

23 ‘‘base year’’); plus
330

•S 2514 IS

1 (2)(A) in the case of the 1st investment year,

2 60 percent of the amount paid to the State under

3 section 458 of such Act for the base year;

4 (B) in the case of the 2nd investment year, 70

5 percent of the amount so paid to the State;

6 (C) in the case of the 3rd investment year, 80

7 percent of the amount so paid to the State;

8 (D) in the case of the 4th investment year, 90

9 percent of the amount so paid to the State; and

10 (E) in the case of the 5th investment year, 100

11 percent of the amount so paid to the State.

12 (e) SENSE OF THE CONGRESS.—It is the sense of the

13 Congress that States should not use amounts paid to the

14 States pursuant to part D of title IV of the Social Security

15 Act, which are reinvested in child support activities, to

16 supplant State funding of such activities.

17 SEC. 499AA. CHILD SUPPORT DEFINITION.

18 (a) IN GENERAL.—Section 452 (42 U.S.C. 652) is

19 amended by adding at the end the following:

20 ‘‘(j) For purposes of this part, the term ‘child sup21 port’ shall have the meaning given such term in section

22 462(b).’’.

23 (b) CONFORMING AMENDMENTS.—Section 462(b)

24 (42 U.S.C. 662(b)) is amended—
331

•S 2514 IS

1 (1) by inserting ‘‘and lump sum’’ after ‘‘peri2 odic’’, and

3 (2) by inserting ‘‘child care,’’ after ‘‘clothing,’’.

4 SEC. 499BB. AUDITS.

5 (a) STUDY.—

6 (1) CONTRACT AUTHORITY.—The Secretary of

7 Health and Human Services shall enter into a con8 tract for a study of the audit process of the Office

9 of Child Support Enforcement to develop criteria

10 and methodology for auditing the activities of State

11 child support enforcement agencies pursuant to part

12 D of title IV of the Social Security Act.

13 (2) DESIGN OF STUDY.—The study shall be de14 signed to—

15 (A) identify ways to improve the auditing

16 process, including by—

17 (i) reducing the resources required to

18 perform the audit;

19 (ii) simplifying procedures for States

20 to follow in obtaining samples;

21 (iii) studying the feasibility of sam22 pling cases for needed action rather than

23 requiring sampling plans for each audit

24 criterion; and
332

•S 2514 IS

1 (iv) a more timely audit period of re2 view; and

3 (B) develop a penalty process which—

4 (i) focuses on improving the delivery

5 of child support services and not harming

6 families;

7 (ii) uses a penalty not tied to any re8 duction of funds payable to States under

9 part A of title IV of the Social Security

10 Act; and

11 (iii) should include the escrowing of

12 funds withheld as penalties for use by

13 States to improve their child support pro14 grams in a manner approved by the Sec15 retary of Health and Human Services.

16 (b) REPORT.—Not later than 90 days after comple17 tion of the study required by subsection (a), the Secretary

18 of Health and Human Services shall submit to the Com19 mittee on Ways and Means of the House of Representa20 tives and the Committee on Finance of the Senate a report

21 on the results of the study.

22 (c) LIMITATION ON CASES INCLUDED IN AUDITS.—

23 Section 452(a)(4) (42 U.S.C. 652(a)(4)) is amended—

24 (1) by inserting ‘(A) after ‘‘(4);

25 (2) by adding ‘‘and’’ at the end; and
333

•S 2514 IS

1 (3) by adding after and below the end the fol2 lowing:

3 ‘‘(B) notwithstanding subparagraph (A), each

4 audit under subparagraph (A) shall be limited to

5 cases open on the date the audit begins and cases

6 closed within 180 days before such date, unless the

7 Secretary has determined, in accordance with regula8 tions, that there is a need for a longitudinal review

9 of case handling that includes cases that have been

10 closed for more than 180 days;’’.

11 SEC. 499CC. CHILD SUPPORT ASSURANCE DEMONSTRA12 TION PROJECTS.

13 (a) SENSE OF THE CONGRESS.—It is the sense of the

14 Congress that children should have a consistent source of

15 income to meet their education and medical needs.

16 (b) SENSE OF THE CONGRESS.—It is the sense of

17 the Congress that the provision of public assistance to a

18 custodial parent for the support of a child with respect

19 to whom a noncustodial parent owes child support does

20 not absolve the noncustodial parent of the obligation to

21 provide such support.

22 (c) SENSE OF THE CONGRESS.—It is the sense of the

23 Congress that the States must continue to vigorously pur24 sue efforts to establish parentage, and establish and en25 force child support obligations.
334

•S 2514 IS

1 (d) CHILD SUPPORT ASSURANCE DEMONSTRATION

2 PROJECTS.—

3 (1) PURPOSE.—The purpose of this subsection

4 is to test the feasibility and utility of ensuring that

5 custodial parents owed child support have a consist6 ent source of income for the support of their chil7 dren, by authorizing States to conduct projects dem8 onstrating various methods for doing so.

9 (2) CONSIDERATION OF APPLICATIONS.—

10 (A) IN GENERAL.—The Secretary of

11 Health and Human Services (in this section re12 ferred to as the ‘‘Secretary’’) shall consider ap13 plications to conduct demonstration projects

14 under this subsection received only from eligible

15 States.

16 (B) ELIGIBLE STATE DEFINED.—For pur17 poses of subparagraph (A), a State is an eligi18 ble State if—

19 (i) the child support collection ratio

20 for the State for the most recent fiscal

21 year for which such information is avail22 able exceeds the child support collection

23 ratio for the United States for the fiscal

24 year; or
335

•S 2514 IS

1 (ii) AFDC support collection ratio for

2 the State for the most recent fiscal year

3 for which such information is available ex4 ceeds the AFDC support collection ratio

5 for the United States for the fiscal year.

6 (C) CHILD SUPPORT COLLECTION

7 RATIO.—As used in subparagraph (B), the term

8 ‘‘child support collection ratio’’ means, with re9 spect to a fiscal year—

10 (i) for a State—

11 (I) the total amount expended by

12 the State during the fiscal year for

13 the operation of the plan approved

14 under section 454 of the Social Secu15 rity Act; divided by

16 (II) the total amount of support

17 collected by the State during the fiscal

18 year in all cases under part D of title

19 IV of such Act; and

20 (ii) for the United States—

21 (I) the total amount expended by

22 the States during the fiscal year for

23 the operation of the plans approved

24 under such section; divided by
336

•S 2514 IS

1 (II) the total amount of support

2 collected by the State during the fiscal

3 year in all cases under part D of title

4 IV of such Act; and

5 (ii) for the United States—

6 (I) the total amount expended by

7 the States during the fiscal year for

8 the operation of the plans approved

9 under such section; divided by

10 (II) the total amount of support

11 collected by the States during the fis12 cal year in all cases under such part.

13 (D) AFDC SUPPORT COLLECTION

14 RATIO.—As used in subparagraph (B), the term

15 ‘‘AFDC support collection ratio’’ means, with

16 respect to a fiscal year—

17 (i) for a State—

18 (I) the total amount expended by

19 the State during the fiscal year for

20 the operation of the plan approved

21 under section 454 of the Social Secu22 rity Act; divided by

23 (II) the total amount of support

24 collected by the State under the plan

25 during the fiscal year in cases in
337

•S 2514 IS

1 which the support obligation involved

2 is assigned to the State pursuant to

3 section 402(a)(26) or section

4 471(a)(17) of such Act; and

5 (ii) for the United States—

6 (I) the total amount expended by

7 the States during the fiscal year for

8 the operation of the plans approved

9 under such section 454; divided by

10 (II) the total amount of support

11 collected by the States under the

12 plans during the fiscal year in cases in

13 which the support obligation involved

14 is assigned to a State pursuant to sec15 tion 402(a)(26) or section 471(a)(17)

16 of such Act.

17 (3) APPLICATION REQUIREMENTS.—Each appli18 cation of a State to conduct a demonstration project

19 under this subsection must describe a demonstration

20 project that meets the following requirements:

21 (A) PROJECT BENEFICIARIES.—A child

22 support assurance benefit is payable under the

23 project to the caretaker of a child if—

24 (i) the child is an eligible child; and
338

•S 2514 IS

1 (ii) the caretaker has applied for serv2 ices under the State plan approved under

3 part D of title IV of the Social Security

4 Act.

5 (B) ELIGIBLE CHILDREN.—A child is an

6 eligible child if—

7 (i) the child resides in the State;

8 (ii) the child has a living noncustodial

9 parent;

10 (iii) a good faith effort has been made

11 to seek or enforce an order for such parent

12 to provide support for the child, or there is

13 good cause for not seeking or enforcing

14 such an order; and

15 (iv) any rights to support owed the

16 child have been assigned to the State, to

17 the extent of the child support assurance

18 benefits received with respect to the child

19 under the project.

20 (C) AMOUNT OF CHILD SUPPORT ASSUR21 ANCE BENEFIT.—The amount of the child sup22 port assurance benefit payable under the

23 project to the caretaker of 1 or more eligible

24 children is the amount by which—
339

•S 2514 IS

1 (i) the child support assurance thresh2 old; exceeds

3 (ii) the dollar value of the child sup4 port (if any) received during the month by

5 the caretaker from the noncustodial parent

6 for the support of any eligible child.

7 (D) CHILD SUPPORT ASSURANCE THRESH8 OLD.—The child support assurance threshold is

1 9 ⁄12 of—

10 (i) $2,000 for the 1st eligible child;

11 plus

12 (ii) $1,000 for the 2nd eligible child

13 (if any); plus

14 (iii) $500 for each subsequent eligible

15 child (if any).

16 (4) METHODS TO BE TESTED.—In approving

17 applications to conduct demonstration projects under

18 this subsection, the Secretary shall ensure that the

19 applications approved under this subsection describe

20 projects which, in the aggregate, are designed to test

21 the following:

22 (A) ADMINISTRATIVE VERSUS OTHER

23 PROCESSING.—The feasibility of implementing

24 a statewide child support assurance benefit in a

25 State which processes child support and parent-
340

•S 2514 IS

1 age cases administratively, as opposed to the

2 feasibility of implementing such a benefit in a

3 State which processes such cases only judicially

4 or quasi-judicially.

5 (B) ALLOWANCE OF GOOD CAUSE EXCEP6 TIONS.—The effects of prohibiting the provision

7 of a child support assurance benefit with re8 spect to a child unless an order for the support

9 of the child has been established and the care10 taker of the child has made a good faith effort

11 to enforce the order, as opposed to allowing

12 good cause exceptions to the prohibition.

13 (C) TIMING OF BENEFITS.—The effects of

14 providing child support assurance benefits im15 mediately upon the establishment of a child

16 support order, as opposed to providing such

17 benefits only after a period (determined by the

18 Secretary) of nonreceipt of child support. The

19 Secretary may select 1 or more such periods to

20 be tested in different demonstration projects.

21 (D) RELATIONSHIP OF BENEFITS TO

22 OTHER INCOME AND BENEFITS.—The effects of

23 reducing the amount payable with respect to a

24 child under the State plan approved under part

25 A of title IV of the Social Security Act by a
341

•S 2514 IS

1 portion (determined by the Secretary) of the

2 child support assurance benefit provided by the

3 State with respect to the child, as opposed to

4 reducing the child support assurance benefit

5 provided by the State with respect to the child

6 by a portion (determined by the Secretary) of

7 the earned income of the family of the child.

8 The Secretary may select 1 or more such por9 tions of benefits or of earned income to be test10 ed in different demonstration projects.

11 (5) PRIORITY TO BE GIVEN TO PROJECTS THAT

12 INCLUDE WORK INCENTIVES.—In approving applica13 tions to conduct demonstration projects under this

14 subsection, the Secretary shall give priority among

15 otherwise equivalent applications to applications that

16 describe projects that include work incentives for

17 participants.

18 (6) APPROVAL OF CERTAIN APPLICATIONS.—

19 The Secretary shall approve not more than 5 appli20 cations to conduct demonstration projects under this

21 subsection which appear likely to contribute signifi22 cantly to the achievement of the purpose of this sub23 section.

24 (7) OTHER REQUIREMENTS.—Each State whose

25 application to conduct a demonstration project under
342

•S 2514 IS

1 this subsection has been approved by the Secretary

2 shall conduct the project in accordance with such

3 regulations as the Secretary may prescribe.

4 (8) FUNDING.—From the sums appropriated to

5 carry out this subsection, the Secretary shall pay to

6 each State whose application to conduct a dem7 onstration project under this subsection has been ap8 proved by the Secretary, for each month, an amount

9 equal to—

10 (A) 90 percent of the aggregate amount of

11 the child support assurance benefits paid by the

12 State during the month if, during the month,

13 the project has met such performance goals as

14 the Secretary has established for the project; or

15 (B) 80 percent of such aggregate amount,

16 otherwise.

17 (9) MODIFIED PRIORITY OF DISTRIBUTION OF

18 CHILD SUPPORT COLLECTED FOR CHILDREN WITH

19 RESPECT TO WHOM CHILD SUPPORT ASSURANCE

20 BENEFIT IS PAID.—In lieu of paragraph (1) of sec21 tion 457(e) of the Social Security Act, child support

22 collected from a noncustodial parent of a child with

23 respect to whom a child support assurance benefit is

24 paid under a demonstration project conducted under
343

•S 2514 IS

1 this subsection shall (subject to section 457(d) of

2 such Act) be paid—

3 (A) first to the State, to the extent nec4 essary to reimburse the State for the portion of

5 the benefit not paid from funds provided under

6 paragraph (8) of this subsection; and

7 (B) then to the Federal Government, to

8 the extent necessary to reimburse the Federal

9 Government for the portion of the benefit paid

10 from funds provided under paragraph (8) of

11 this subsection.

12 (10) DURATION OF PROJECTS.—

13 (A) IN GENERAL.—Each State whose ap14 plication to conduct a demonstration project

15 under this subsection has been approved by the

16 Secretary shall conduct the project for not less

17 than 3 years and not more than 5 years.

18 (B) AUTHORITY TO TERMINATE

19 PROJECTS.—The Secretary may terminate a

20 demonstration project conducted under this

21 subsection if the Secretary determines that the

22 project is not being conducted consistent with

23 or satisfactorily under this subsection.

24 (11) EVALUATIONS.—Each State which con25 ducts a demonstration project under this subsection
344

•S 2514 IS

1 shall prepare and submit to the Secretary an interim

2 and a final evaluation of the project with respect to

3 the impact of the project on—

4 (A) the economic and noneconomic well5 being of the participants in the project and of

6 the work force generally; and

7 (B) participation in and expenditures

8 under the program of the State under the State

9 plan approved under part A of title IV of the

10 Social Security Act.

11 (12) REPORT TO THE CONGRESS.—Within 1

12 year after the completion of all demonstration

13 projects conducted under this subsection, the Sec14 retary shall submit to the Committee on Ways and

15 Means of the House of Representatives and the

16 Committee on Finance of the Senate a report that

17 contains a consolidated evaluation of the projects.

18 SEC. 499DD. CHILDREN’S TRUST FUND.

19 (a) DESIGNATION OF CONTRIBUTIONS.—

20 (1) IN GENERAL.—Subchapter A of chapter 61

21 of the Internal Revenue Code of 1986 (relating to

22 returns and records) is amended by adding at the

23 end thereof the following new part:
345

•S 2514 IS

1 ‘‘PART IX—CONTRIBUTIONS TO CHILDREN’S

2 TRUST FUND

‘‘Sec. 6097. Amounts for Children’s Trust Fund.

3 ‘‘SEC. 6097. AMOUNTS FOR CHILDREN’S TRUST FUND.

4 ‘‘Each taxpayer may include with such taxpayer’s re5 turn of tax imposed by chapter 1 for any taxable year a

6 contribution by the taxpayer to the Children’s Trust

7 Fund.’’.

8 (2) CLERICAL AMENDMENT.—The table of

9 parts for subchapter A of chapter 61 of the Internal

10 Revenue Code of 1986 is amended by adding at the

11 end thereof the following new item:

‘‘Part IX—Contributions for Children’s Trust Fund.’’.

12 (3) EFFECTIVE DATE.—The amendments made

13 by this subsection shall apply to taxable years begin14 ning after December 31, 1992.

15 (b) ESTABLISHMENT OF CHILDREN’S TRUST

16 FUND.—

17 (1) IN GENERAL.—Subchapter A of chapter 98

18 of the Internal Revenue Code of 1986 (relating to

19 the trust fund code) is amended by adding at the

20 end thereof the following new section:

21 ‘‘SEC. 9512. CHILDREN’S TRUST FUND.

22 ‘‘(a) CREATION OF TRUST FUND.—There is estab23 lished in the Treasury of the United States a trust fund

24 to be known as the ‘Children’s Trust Fund’, consisting
346

•S 2514 IS

1 of such amounts as may be appropriated or credited to

2 the Trust Fund as provided in this section or section

3 9602(b).

4 ‘‘(b) TRANSFER TO CHILDREN’S TRUST FUND OF

5 AMOUNTS DESIGNATED.—There is hereby appropriated to

6 the Children’s Trust Fund amounts equivalent to the

7 amounts contributed to such Trust Fund under section

8 6097.

9 ‘‘(c) EXPENDITURES FROM TRUST FUND.—

10 ‘‘(1) IN GENERAL.—Amounts in the Children’s

11 Trust Fund shall be available as provided by appro12 priation Acts for making expenditures for programs

13 regarding child support and the specific mandates

14 described in part D of title IV of the Social Security

15 Act, especially such mandates established by the

16 amendments made by the Interstate Child Support

17 Act of 1993.

18 ‘‘(2) ADMINISTRATIVE EXPENSES.—Amounts in

19 the Children’s Trust Fund shall be available to pay

20 the administrative expenses of the Department of

21 the Treasury directly allocable to—

22 ‘‘(A) modifying the individual income tax

23 return forms to carry out section 6097,

24 ‘‘(B) carrying out this chapter with respect

25 to such Trust Fund, and
347

•S 2514 IS

1 ‘‘(C) processing amounts received under

2 section 6097 and transferring such amounts to

3 such Trust Fund.’’.

4 (2) CLERICAL AMENDMENT.—The table of sec5 tions for subchapter A of chapter 98 of the Internal

6 Revenue Code of 1986 is amended by adding at the

7 end thereof the following new item:

‘‘Sec. 9512. Children’s Trust Fund.’’.

8 SEC. 499EE. STUDY OF REASONS FOR NONPAYMENT OF

9 CHILD SUPPORT; REPORT.

10 (a) STUDY.—The Comptroller General of the United

11 States shall—

12 (1) conduct a study of the causes of delin13 quency in the payment of child support, including

14 the nonpayment of child support by noncustodial

15 parents and failure of custodial parents to cooperate

16 in the collection of child support; and

17 (2) if a sufficient number of studies of this

18 matter are available, review the studies.

19 (b) REPORT TO THE CONGRESS.—Within 1 year after

20 the date of the enactment of this Act, the Comptroller

21 General shall submit to the Committee on Ways and

22 Means of the House of Representatives and the Committee

23 on Finance of the Senate, and to the Office of Child Sup24 port Enforcement, a report that contains the results of
348

•S 2514 IS

1 the study required by subsection (a), and a consolidated

2 summary of the studies described in subsection (a)(2).

3 SEC. 499FF. STUDY OF EFFECTIVENESS OF ADMINISTRA4 TIVE PROCESSES; REPORT.

5 (a) STUDY.—The Comptroller General of the United

6 States shall conduct a study of the effectiveness of the

7 processing of child support and parentage cases in States

8 that use administrative processes as compared with States

9 that use judicial or quasi-judicial processes.

10 (b) REPORT TO THE CONGRESS.—Within 1 year after

11 the date of the enactment of this Act, the Comptroller

12 General shall submit to the Committee on Ways and

13 Means of the House of Representatives and the Committee

14 on Finance of the Senate a report that contains the results

15 of the study required by subsection (a).

16 SEC. 499GG. PUBLICATION OF BEST CHILD SUPPORT PRAC17 TICES.

18 (a) SENSE OF THE CONGRESS.—It is the sense of the

19 Congress that the Office of Child Support Enforcement

20 should develop a mechanism to publicize the best practices

21 of States in the area of child support.

22 (b) COMPENDIUM OF STATE CHILD SUPPORT STAT23 UTES.—The Office of Child Support Enforcement shall

24 produce and update the compendium entitled ‘‘A Guide
349

•S 2514 IS

1 To State Child Support And Paternity Laws’’, published

2 by the National Conference of State Legislatures.

3 SEC. 499HH. ESTABLISHMENT OF PERMANENT CHILD SUP4 PORT ADVISORY COMMITTEE.

5 (a) IN GENERAL.—The Office of Child Support En6 forcement shall establish an advisory committee on child

7 support matters composed of Federal and State legisla8 tors, State child support officials, and representatives of

9 custodial and noncustodial parents.

10 (b) FUNCTIONS.—The advisory committee estab11 lished pursuant to subsection (a) shall—

12 (1) provide oversight of the implementation of

13 Federal laws and regulations affecting child support,

14 and the operation of Federal, State, and local child

15 support programs; and

16 (2) provide a forum through which child sup17 port problems experienced by parents, State agen18 cies, the courts, and the private bar may be identi19 fied, and from which recommendations on how to

20 solve such problems may be reported to the Sec21 retary of Health and Human Services and to the

22 Congress.

23 (c) PERMANENCY.—Section 14 of the Federal Advi24 sory Committee Act (5 U.S.C. App.) shall not apply to
350

•S 2514 IS

1 the advisory committee established pursuant to subsection

2 (a) of this section.

3 PART J—STATE ROLE

4 SEC. 499II. ADVOCATION OF CHILDREN’S ECONOMIC SECU5 RITY.

6 Section 454 (42 U.S.C. 654), as amended by section

7 499X of this Act, is amended—

8 (1) by striking ‘‘and’’ at the end of paragraph

9 (29);

10 (2) by striking the period at the end of para11 graph (30) and inserting ‘‘; and’’; and

12 (3) by inserting after paragraph (30) the fol13 lowing:

14 ‘‘(31) provide that the agency administering the

15 plan shall advocate to promote the greatest economic

16 security possible for children, consistent with the

17 ability of any individual who owes child support with

18 respect to the child to provide the support.’’.

19 SEC. 499JJ. DUTIES OF STATE CHILD SUPPORT AGENCIES.

20 Section 454 (42 U.S.C. 654), as amended by section

21 499II of this Act, is amended—

22 (1) by striking ‘‘and’’ at the end of paragraph

23 (30);

24 (2) by striking the period at the end of para25 graph (31) and inserting ‘‘; and’’; and
351

•S 2514 IS

1 (3) by inserting after paragraph (31) the fol2 lowing:

3 ‘‘(32) provide that the agency administering the

4 plan shall provide to each custodial parent—

5 ‘‘(A) a written description of the services

6 available under the plan, and a statement de7 scribing the priorities applied in distributing

8 collected child support and the rules governing

9 confidentiality of information in child support

10 matters;

11 ‘‘(B) a statement that at least 30 days be12 fore the agency consents to the dismissal of a

13 child support case with prejudice or a reduction

14 of arrearages, the agency must provide notice to

15 the custodial parent at the last known address

16 of the custodial parent;

17 ‘‘(C) written quarterly reports on the sta18 tus of any case involving the custodial parent;

19 ‘‘(D) a statement that the State is re20 quired to provide services under the plan to any

21 custodial parent who is eligible for aid under

22 the State plan approved under part A; and

23 ‘‘(E) a statement that any custodial parent

24 who applies for services under the plan is eligi25 ble for such services, and that any application
352

•S 2514 IS

1 fee for such services is deferred pending deter2 mination of the eligibility of the custodial par3 ent for aid under the State plan approved under

4 part A.’’.

5 SEC. 499KK. SENSE OF THE CONGRESS REGARDING QUAL6 ITY OF AND ACCESSIBILITY TO CHILD SUP7 PORT SERVICES.

8 It is the sense of the Congress that—

9 (1) States should work closely with parents to

10 improve the quality of child support services; and

11 (2) State and local child support enforcement

12 agencies should have—

13 (A) offices in easily accessible locations

14 near public transportation;

15 (B) office hours that allow parents to meet

16 with attorneys and caseworkers without having

17 to take time off from work; and

18 (C) office environments conducive to pri19 vate discussion of legal and personal matters,

20 such as in individual interview rooms and child

21 care facilities.
353

•S 2514 IS

1 SEC. 499LL. ADMINISTRATIVE PROCESS FOR CHANGE OF

2 PAYEE IN IV–D CASES.

3 Section 466(a) (42 U.S.C. 666(a)), as amended by

4 section 499S of this Act, is amended by inserting after

5 paragraph (37) the following:

6 ‘‘(38) Procedures under which only administra7 tive procedures are required to change the payee

8 under a child support order in a case under this

9 part, if a statement by an official of the State child

10 support enforcement agency is included in the court

11 or administrative file documenting the change.’’.

12 SEC. 499MM. SENSE OF THE CONGRESS SUPPORTING USE

13 OF ADMINISTRATIVE PROCEDURES IN CHILD

14 SUPPORT CASES.

15 It is the sense of the Congress that each State should

16 establish administrative procedures to process child sup17 port cases.

18 SEC. 499NN. SENSE OF THE CONGRESS SUPPORTING ES19 TABLISHMENT OF STATE CHILD SUPPORT

20 COUNCILS.

21 It is the sense of the Congress that each State should

22 establish a child support council, composed of members

23 from all over the State, to—

24 (1) review State laws on child support and pa25 ternity;
354

•S 2514 IS

1 (2) recommend improvements in child support

2 and paternity programs and in such laws; and

3 (3) serve as a public forum for custodial and

4 noncustodial parents on matters related to child sup5 port and paternity.

6 PART K—JOBS FOR UNEMPLOYED

7 NONCUSTODIAL PARENTS

8 SEC. 499OO. PARENTS FAIR SHARE DEMONSTRATION

9 PROJECTS.

10 (a) SENSE OF THE CONGRESS.—It is the sense of the

11 Congress that any program established by the Federal

12 Government to provide jobs for noncustodial parents

13 should be administered so as not to adversely affect any

14 Federal program for custodial parents, either directly or

15 through competition for available funds.

16 (b) EVALUATION OF PROJECTS; REPORT TO THE

17 CONGRESS; CONDITIONAL AUTHORITY TO CONDUCT AD18 DITIONAL AND MORE EXTENSIVE PROJECTS.—Upon re19 ceiving the evaluations required to be provided pursuant

20 to section 482(d)(3) of the Social Security Act, the Sec21 retary of Health and Human Services shall transmit the

22 evaluations to the Secretary of Labor who shall—

23 (1) study the evaluations;

24 (2) within 12 months after receipt of the eval25 uations, submit to the Committee on Ways and
355

•S 2514 IS

1 Means of the House of Representatives and the

2 Committee on Finance of the Senate a consolidated

3 report on the activities evaluated; and

4 (3)(A) if the evaluations are sufficient to permit

5 the Secretary to make recommendations with respect

6 to the activities evaluated, include such rec7 ommendations in the report required by paragraph

8 (2) of this subsection; or

9 (B) if the evaluations are inconclusive, author10 ize States to provide services, under programs estab11 lished under section 402(a)(19) and part F of title

12 IV of such Act, on a voluntary or mandatory basis,

13 to noncustodial parents who are unemployed and un14 able to meet their child support obligations, of great15 er scope and for a greater duration than the services

16 provided under section 482(d)(3) of such Act, in ac17 cordance with regulations prescribed by the Sec18 retary of Labor.

19 PART L—EFFECTIVE DATE

20 SEC. 499PP. EFFECTIVE DATE.

21 Except as otherwise provided in this Act, this Act and

22 the amendments made by this Act shall take effect on Jan23 uary 1, 1995.
356

•S 2514 IS

1 PART M—CHILD SUPPORT ENFORCEMENT

2 IMPROVEMENTS ACT OF 1993

3 SEC. 499QQ. SHORT TITLE.

4 This part may be cited as the ‘‘Child Support En5 forcement Improvements Act’’.

6 SEC. 499RR. NONLIABILITY FOR DEPOSITORY INSTITU7 TIONS PROVIDING FINANCIAL RECORDS TO

8 STATE CHILD SUPPORT ENFORCEMENT

9 AGENCIES IN CHILD SUPPORT CASES.

10 (a) IN GENERAL.—Notwithstanding any other provi11 sion of Federal or State law, a depository institution shall

12 not be liable under any Federal or State law to any person

13 for disclosing any financial record of an individual to a

14 State child support enforcement agency attempting to es15 tablish, modify, or enforce a child support obligation of

16 such individual.

17 (b) PROHIBITION OF DISCLOSURE OF FINANCIAL

18 RECORD OBTAINED BY STATE CHILD SUPPORT EN19 FORCEMENT AGENCY.—A State child support enforcement

20 agency which obtains a financial record of an individual

21 from a financial institution pursuant to subsection (a)

22 may disclose such financial record only for the purpose

23 of, and to the extent necessary in, establishing, modifying,

24 or enforcing a child support obligation of such individual.

25 (c) CIVIL DAMAGES FOR UNAUTHORIZED DISCLO26 SURE.—
357

•S 2514 IS

1 (1) DISCLOSURE BY STATE OFFICER OR EM2 PLOYEE.—If any officer or employee of a State

3 knowingly, or by reason of negligence, discloses a fi4 nancial record of an individual in violation of sub5 section (b), such individual may bring a civil action

6 for damages against such State in a district court of

7 the United States.

8 (2) NO LIABILITY FOR GOOD FAITH BUT ERRO9 NEOUS INTERPRETATION.—No liability shall arise

10 under this subsection with respect to any disclosure

11 which results from a good faith, but erroneous, in12 terpretation of subsection (b).

13 (3) DAMAGES.—In any action brought under

14 paragraph (1), upon a finding of liability on the part

15 of the defendant, the defendant shall be liable to the

16 plaintiff in an amount equal to the sum of—

17 (A) the greater of—

18 (i) $1,000 for each act of unauthor19 ized disclosure of a financial record with

20 respect to which such defendant is found

21 liable; or

22 (ii) the sum of—

23 (I) the actual damages sustained

24 by the plaintiff as a result of such un25 authorized disclosure; plus
358

•S 2514 IS

1 (II) in the case of a willful disclo2 sure or a disclosure which is the re3 sult of gross negligence, punitive dam4 ages; plus

5 (B) the costs of the action.

6 (d) DEFINITIONS.—For purposes of this section:

7 (1) The term ‘‘depository institution’’ means—

8 (A) a depository institution, as defined by

9 section 3(c) of the Federal Deposit Insurance

10 Act;

11 (B) an institution-affiliated party, as de12 fined by section 3(u) of such Act; and

13 (C) any Federal credit union or State cred14 it union, as defined by section 101 of the Fed15 eral Credit Union Act, including an institution16 affiliated party of such a credit union, as de17 fined by section 206(r) of such Act.

18 (2) The term ‘‘financial record’’ has the mean19 ing given such term by section 1101 of the Right to

20 Financial Privacy Act of 1978.

21 (3) The term ‘‘State child support enforcement

22 agency’’ means a State agency which administers a

23 State program for establishing and enforcing child

24 support obligations.
359

•S 2514 IS

1 SEC. 499SS. ACCESS TO AND USE OF CONSUMER REPORTS

2 BY STATE CHILD SUPPORT ENFORCEMENT

3 AGENCIES IN CHILD SUPPORT CASES.

4 (a) IN GENERAL.—Section 604 of the Fair Credit

5 Reporting Act (15 U.S.C. 1681b) is amended by adding

6 at the end the following:

7 ‘‘(4) To a State child support enforcement

8 agency that is seeking to establish, modify, or en9 force a child support obligation against the

10 consumer, if—

11 ‘‘(A) the paternity of the consumer for the

12 child to which the obligation relates has been

13 established or acknowledged by the consumer in

14 accordance with State laws under which the ob15 ligation arises (if required by those laws); and

16 ‘‘(B) the State child support enforcement

17 agency—

18 ‘‘(i) before obtaining the consumer re19 port, provides written notice to the

20 consumer that the State agency intends to

21 obtain a consumer report on the consumer;

22 and

23 ‘‘(ii) certifies to the consumer report24 ing agency that—
360

•S 2514 IS

1 ‘‘(I) the requirement in subpara2 graph (A) has been fulfilled (if appli3 cable); and

4 ‘‘(II) the notice required by

5 clause (i) has been provided.’’.

6 (b) STATE CHILD SUPPORT ENFORCEMENT AGENCY

7 DEFINED.—Section 603 of such Act (15 U.S.C. 1681a)

8 is amended by adding at the end the following new sub9 section:

10 ‘‘(j) The term ‘State child support enforcement agen11 cy’ means a State agency which administers a State pro12 gram for establishing and enforcing child support obliga13 tions.’’.

14 SEC. 499TT. HEALTH CARE SUPPORT.

15 (a) INCLUSION IN CHILD SUPPORT ORDERS.—

16 (1) IN GENERAL.—Section 466(a) of the Social

17 Security Act (42 U.S.C. 666(a)) is amended by in18 serting after paragraph (10) the following:

19 ‘‘(11) Not later than the beginning of the 9th

20 calendar month that begins after the date the Sec21 retary prescribes final regulations as provided for in

22 section 467(d)(2):

23 ‘‘(A) Procedures which require any child

24 support order, issued or modified by a court or

25 administrative agency of the State on or after
361

•S 2514 IS

1 the effective date of guidelines established by

2 the State under section 467(d), to provide for

3 coverage of the health care costs of the child in

4 accordance with such guidelines.

5 ‘‘(B) Procedures which require the expe6 dited consideration and disposition of any alle7 gation of noncompliance with an obligation to

8 cover the health care costs of a child imposed

9 under a child support order issued or modified

10 in the State.’’.

11 (2) STATE GUIDELINES.—Section 467 of such

12 Act (42 U.S.C. 667) is amended by adding at the

13 end the following:

14 ‘‘(d)(1) Not later than the beginning of the 9th cal15 endar month that begins after the date the Secretary pre16 scribes final regulations in accordance with paragraph (2),

17 each State, as a condition for having its State plan ap18 proved under this part, must establish guidelines for the

19 coverage of the health care costs of children pursuant to

20 child support orders issued or modified in the State, which

21 guidelines shall create a streamlined process that meets

22 the minimum standards established by the Secretary in

23 such regulations.

24 ‘‘(2)(A) The Secretary shall promulgate regulations

25 which set forth minimum standards that any set of guide-
362

•S 2514 IS

1 lines established pursuant to paragraph (1) must meet in

2 providing for the coverage of the health care costs of chil3 dren pursuant to child support orders issued or modified

4 in the State, including—

5 ‘‘(i) the contents of such an order with respect

6 to the coverage of such costs;

7 ‘‘(ii) the distribution of responsibility for such

8 costs;

9 ‘‘(iii) to the extent that such costs are to be

10 covered through health insurance—

11 ‘‘(I) the provision of such insurance;

12 ‘‘(II) the payment of insurance claims; and

13 ‘‘(III) the rights of the noncustodial parent

14 and the custodial parent to insurance informa15 tion;

16 ‘‘(iv) the circumstances under which a provider

17 of health insurance may or may not deny coverage

18 to a child who is the subject of such an order;

19 ‘‘(v) penalties to be imposed on providers of

20 health insurance who fail to comply with the guide21 lines; and

22 ‘‘(vi) how changes in the circumstances of the

23 noncustodial parent and the custodial parent are to

24 be taken into account with respect to the coverage

25 of such costs.
363

•S 2514 IS

1 ‘‘(B) In developing such standards, the Secretary

2 shall ensure that, in establishing guidelines pursuant to

3 paragraph (1), the State considers the following matters

4 in the following order of importance:

5 ‘‘(i) The best interests of the child.

6 ‘‘(ii) The financial and other circumstances of

7 the parents of the child.

8 ‘‘(iii) Cost-effectiveness.

9 ‘‘(3) The preceding subsections of this section shall

10 apply in like manner to the guidelines established pursu11 ant to this subsection.’’.

12 (3) REGULATIONS.—

13 (A) PROPOSED REGULATIONS.—Within 9

14 months after the date of the enactment of this

15 Act, the Secretary of Health and Human Serv16 ices shall issue proposed regulations to imple17 ment the amendments made by this subsection.

18 (B) FINAL REGULATIONS.—Within 14

19 months after the date of the enactment of this

20 Act, the Secretary of Health and Human Serv21 ices shall issue final regulations to implement

22 the amendments made by this subsection.

23 (b) INCLUSION IN INCENTIVE PAYMENTS PROGRAM

24 OF DEPENDENT HEALTH INSURANCE PROVIDED DUE TO

25 SUCCESSFUL ENFORCEMENT.—
364

•S 2514 IS

1 (1) IN GENERAL.—Section 458(b) of the Social

2 Security Act (42 U.S.C. 658(b)) is amended by add3 ing at the end the following:

4 ‘‘(5)(A) For purposes of this section, the successful

5 enforcement by the State of a provision of a support order

6 requiring an absent parent to obtain health insurance for

7 1 or more children shall be considered the collection of

8 support from the absent parent, without regard to the

9 means by which such support is provided.

10 ‘‘(B) The amount of support collected in any case in

11 which the State successfully enforces a provision of a sup12 port order requiring an absent parent to obtain health in13 surance for 1 or more children shall be the savings to the

14 State from the provision of such health insurance to such

15 children, as determined in accordance with a health insur16 ance savings methodology adopted by the State in accord17 ance with regulations prescribed by the Secretary.’’.

18 (2) REGULATIONS.—Within 6 months after the

19 date of the enactment of this Act, the Secretary of

20 Health and Human Services shall prescribe such

21 regulations as may be necessary to implement the

22 amendment made by paragraph (1).

23 (3) STUDY; REPORT.—

24 (A) STUDY.—The Secretary of Health and

25 Human Services shall conduct a study to deter-
365

•S 2514 IS

1 mine the incentives that should be provided to

2 encourage States to enforce obligations of

3 noncustodial parents to pay (and obtain medical

4 insurance coverage with respect to) the reason5 able and necessary health and dental expenses

6 of the children to whom the noncustodial par7 ents owe such obligations.

8 (B) REPORT.—Not later than 12 months

9 after the date of the enactment of this Act, the

10 Secretary of Health and Human Services shall

11 submit to the Committee on Ways and Means

12 of the House of Representatives and the Com13 mittee on Finance of the Senate the results of

14 the study required by subparagraph (A).

15 SEC. 499UU. ANNUAL REPORTS ON STATE COMPLIANCE

16 WITH TIME LIMITS WITHIN WHICH STATE

17 MUST PROVIDE CERTAIN CHILD SUPPORT AS18 SISTANCE.

19 Section 452(a)(10) of the Social Security Act (42

20 U.S.C. 652(a)(10)) is amended—

21 (1) in subparagraph (H), by striking ‘‘and’’;

22 (2) in subparagraph (I), by striking the period

23 and inserting ‘‘; and’’; and

24 (3) by inserting after subparagraph (I) the fol25 lowing:
366

•S 2514 IS

1 ‘‘(J) compliance, by State, with the stand2 ards established pursuant to subsections (h)

3 and (i).’’.

4 SEC. 499VV. WAGES WITHHELD BY EMPLOYERS TO PAY

5 CHILD SUPPORT OBLIGATIONS REQUIRED TO

6 BE PAID TO STATE WITHIN 10 DAYS; LATE

7 PAYMENT PENALTY IMPOSED ON EMPLOY8 ERS.

9 (a) IN GENERAL.—Section 466(b)(6)(A) of the Social

10 Security Act (42 U.S.C. 666(b)(6)(A)) is amended—

11 (1) in clause (i), by inserting ‘‘within 10 days

12 after the payment of such wages’’ before ‘‘to the ap13 propriate agency’’; and

14 (2) by adding at the end the following:

15 ‘‘(iii) The State must require any employer who

16 fails to make any payment required in accordance

17 with clause (i) within the 10-day period described

18 therein to pay the State a $1,000 penalty. The State

19 must expend all penalties collected in accordance

20 with this clause for the operation of the State plan

21 approved under section 454, not later than the end

22 of the calendar quarter following the calendar quar23 ter in which collected.’’.

24 (b) EFFECTIVE DATE.—
367

•S 2514 IS

1 (1) IN GENERAL.—Except as provided in para2 graph (2) of this subsection, the amendments made

3 by subsection (a) of this section shall take effect on

4 the date of the enactment of this Act and apply to

5 wages paid on or after such date and payments

6 under part D of title IV of the Social Security Act

7 for calendar quarters beginning on or after such

8 date.

9 (2) DELAY PERMITTED IF STATE LEGISLATION

10 REQUIRED.—In the case of a State plan approved

11 under section 454 of the Social Security Act which

12 the Secretary of Health and Human Services deter13 mines requires State legislation (other than legisla14 tion appropriating funds) in order for the plan to

15 meet the additional requirements imposed by the

16 amendments made by subsection (a) of this section,

17 the State plan shall not be regarded as failing to

18 comply with the requirements of such section 454

19 solely on the basis of the failure of the plan to meet

20 such additional requirements before the 1st day of

21 the 1st calendar quarter beginning after the close of

22 the 1st regular session of the State legislature that

23 begins after the date of the enactment of this Act.

24 For purposes of the previous sentence, in the case

25 of a State that has a 2-year legislative session, each
368

•S 2514 IS

1 year of such session shall be deemed to be a sepa2 rate regular session of the State legislature.

3 SEC. 499WW. NATIONAL PARENT LOCATOR NETWORK.

4 Section 453 of the Social Security Act (42 U.S.C.

5 653) is amended by adding at the end the following:

6 ‘‘(g) The Secretary shall expand the Parent Locator

7 Service to establish a national network based on the com8 prehensive statewide child support enforcement systems

9 developed by the States, to—

10 ‘‘(1) allow each State to—

11 ‘‘(A) locate any absent parent who owes

12 child support, for whom a child support obliga13 tion is being established, or for whom an order

14 for visitation is being enforced, by—

15 ‘‘(i) accessing the records of other

16 State agencies and sources of locate infor17 mation directly from one computer system

18 to another; and

19 ‘‘(ii) accessing Federal sources of lo20 cate information in the same fashion;

21 ‘‘(B) access the files of other States to de22 termine whether there are other child support

23 orders involving the same absent parent, and

24 obtain the details of any such order;
369

•S 2514 IS

1 ‘‘(C) provide for both on-line and batch

2 processing of locate requests, with on-line ac3 cess restricted to cases in which the information

4 is needed immediately (for such reasons as

5 court appearances) and batch processing used

6 to ‘troll’ data bases to locate individuals or up7 date information periodically; and

8 ‘‘(D) direct locate requests to individual

9 States or Federal agencies, broadcast requests

10 to selected States, or broadcast cases to all

11 States when there is no indication of the source

12 of needed information;

13 ‘‘(2) provide for a maximum of 48-hour turn14 around time for information to be broadcast and re15 turned to a requesting State; and

16 ‘‘(3) provide ready access to courts of the infor17 mation on the network by location of a computer

18 terminal in each court.’’.

19 PART N—REPORTING DELINQUENT PARENTS TO

20 CONSUMER CREDIT AGENCIES

21 SEC. 499XX. INCLUSION IN CONSUMER CREDIT REPORTS

22 OF INFORMATION ON OVERDUE CHILD SUP23 PORT OBLIGATIONS OF THE CONSUMER.

24 (a) PROVISION TO CONSUMER REPORTING AGENCIES

25 OF INFORMATION ON OVERDUE CHILD SUPPORT OBLIGA-
370

•S 2514 IS

1 TIONS OF ABSENT PARENTS.—Section 466(a)(7) of the

2 Social Security Act (42 U.S.C. 666(a)(7)) is amended—

3 (1) by striking ‘‘will’’ and inserting ‘‘shall’’;

4 (2) by striking ‘‘upon the request of such agen5 cy’’;

6 (3) by striking ‘‘, and (C)’’ and all that follows

7 through ‘‘State’’; and

8 (4) by striking ‘‘minor’’ from 466(e) and delet9 ing ‘‘at the option’’ and all that follows through the

10 word ‘‘section.’’

11 (b) EFFECTIVE DATE.—The amendments made by

12 this section shall take effect on the 1st day of the 1st cal13 endar quarter that begins on or after the date of the en14 actment of this Act.

15 Subtitle B—Pension Reform

16 SEC. 501. SHORT TITLE.

17 This subtitle may be cited as the ‘‘Pension Reform

18 Act’’.

19 SEC. 502. PENSION INTEGRATION RULES.

20 (a) APPLICABILITY OF NEW INTEGRATION RULES

21 EXTENDED TO ALL EXISTING ACCRUED BENEFITS.—

22 Notwithstanding subsection (c)(1) of section 1111 of the

23 Tax Reform Act of 1986 (relating to effective date of ap24 plication of nondiscrimination rules to integrated plans)

25 (100 Stat. 2440), effective for plan years beginning after
371

•S 2514 IS

1 the date of the enactment of this Act, the amendments

2 made by subsection (a) of such section 1111 shall also

3 apply to benefits attributable to plan years beginning on

4 or before December 31, 1988.

5 (b) INTEGRATION DISALLOWED FOR SIMPLIFIED

6 EMPLOYEE PENSIONS.—

7 (1) IN GENERAL.—Subparagraph (D) of section

8 408(k)(3) of the Internal Revenue Code of 1986 (re9 lating to permitted disparity under rules limiting

10 discrimination under simplified employee pensions)

11 is repealed.

12 (2) CONFORMING AMENDMENT.—Subparagraph

13 (C) of such section 408(k)(3) is amended by striking

14 ‘‘and except as provided in subparagraph (D),’’.

15 (3) EFFECTIVE DATE.—The amendments made

16 by this subsection shall apply with respect to taxable

17 years beginning on or after January 1, 1993.

18 (c) EVENTUAL REPEAL OF INTEGRATION RULES.—

19 Effective for plan years beginning on or after January 1,

20 2002—

21 (1) subparagraphs (C) and (D) of section

22 401(a)(5) of the Internal Revenue Code of 1986 (re23 lating to pension integration exceptions under non24 discrimination requirements for qualification) are re-
372

•S 2514 IS

1 pealed, and subparagraph (E) of such section

2 401(a)(5) is redesignated as subparagraph (C); and

3 (2) subsection (l) of section 401 of such Code

4 (relating to nondiscriminatory coordination of de5 fined contribution plans with OASDI) is repealed.

6 SEC. 503. APPLICATION OF MINIMUM COVERAGE REQUIRE7 MENTS WITH RESPECT TO SEPARATE LINES

8 OF BUSINESS.

9 (a) IN GENERAL.—Subsection (b) of section 410 of

10 the Internal Revenue Code of 1986 (relating to minimum

11 coverage requirements) is amended—

12 (1) in paragraph (1), by striking ‘‘A trust’’ and

13 inserting ‘‘In any case in which the employer with

14 respect to a plan is treated, under section 414(r), as

15 operating separate lines of business for a plan year,

16 a trust’’, and by inserting ‘‘for such plan year’’ after

17 ‘‘requirements’’; and

18 (2) by redesignating paragraphs (3) through

19 (6) as paragraphs (4) through (7), respectively and

20 by inserting after paragraph (2) the following new

21 paragraph:

22 ‘‘(3) SPECIAL RULE WHERE EMPLOYER OPER23 ATES SINGLE LINE OF BUSINESS.—In any case in

24 which the employer with respect to a plan is not

25 treated, under section 414(r), as operating separate
373

•S 2514 IS

1 lines of business for a plan year, a trust shall not

2 constitute a qualified trust under section 401(a) un3 less such trust is designated by the employer as part

4 of a plan which benefits all employees of the em5 ployer.’’.

6 (b) LIMITATION ON LINE OF BUSINESS EXCEP7 TION.—Paragraph (6) of section 410(b) of such Code (as

8 redesignated by subsection (a)(2) of this section) is

9 amended by inserting ‘‘other than paragraph (1)(A)’’ after

10 ‘‘this subsection’’.

11 SEC. 504. ELIMINATION OF SPECIAL VESTING RULE FOR

12 MULTIEMPLOYER PLANS.

13 (a) INTERNAL REVENUE CODE AMENDMENT.—Para14 graph (2) of section 411(a) of the Internal Revenue Code

15 of 1986 (relating to minimum vesting standards) is

16 amended—

17 (1) by striking ‘‘subparagraph (A), (B), or (C)’’

18 and inserting ‘‘subparagraph (A) or (B)’’; and

19 (2) by striking subparagraph (C).

20 (b) ERISA AMENDMENT.—Paragraph (2) of section

21 203(a)(2) of the Employee Retirement Income Security

22 Act of 1974 (29 U.S.C. 1053(a)(2)) is amended—

23 (1) by striking ‘‘subparagraph (A), (B), or (C)’’

24 and inserting ‘‘subparagraph (A) or (B)’’; and

25 (2) by striking subparagraph (C).
374

•S 2514 IS

1 SEC. 505. DIVISION OF PENSION BENEFITS UPON DIVORCE.

2 (a) AMENDMENTS TO THE INTERNAL REVENUE

3 CODE OF 1986.—

4 (1) IN GENERAL.—Subsection (a) of section

5 401 of the Internal Revenue Code of 1986 (relating

6 to requirements for qualification) is amended—

7 (A) by inserting after paragraph (31) the

8 following new paragraph:

9 ‘‘(32) DIVISION OF PENSION BENEFITS UPON

10 DIVORCE.—

11 ‘‘(A) IN GENERAL.—In the case of a di12 vorce of a participant in a pension plan from a

13 spouse who is, immediately before the divorce,

14 a beneficiary under the plan, a trust forming a

15 part of such plan shall not constitute a quali16 fied trust under this section unless the plan

17 provides that at least 50 percent of the marital

18 share of the accrued benefit of the participant

19 under the plan ceases to be an accrued benefit

20 of such participant and becomes an accrued

21 benefit of such divorced spouse, determined and

22 payable upon the earlier of the retirement of

23 the participant, the participant’s death, or the

24 termination of the plan, except to the extent

25 that a qualified domestic relations order in con26 nection with such divorce provides otherwise.
375

•S 2514 IS

1 ‘‘(B) LIMITATION.—Subparagraph (A)

2 shall not be construed—

3 ‘‘(i) to require a plan to provide any

4 type or form of benefit, or any option, not

5 otherwise provided under the plan,

6 ‘‘(ii) to require the plan to provide in7 creased benefits (determined on the basis

8 of actuarial value),

9 ‘‘(iii) to require the payment of bene10 fits to the divorced spouse which are re11 quired to be paid to another individual in

12 accordance with this paragraph or pursu13 ant to a domestic relations order previously

14 determined to be a qualified domestic rela15 tions order, or

16 ‘‘(iv) to require payment of benefits to

17 the divorced spouse in the form of a quali18 fied joint and survivor annuity to the di19 vorced spouse and his or her subsequent

20 spouse.

21 ‘‘(C) DEFINITIONS.—For purposes of this

22 paragraph—

23 ‘‘(i) DOMESTIC RELATIONS ORDER;

24 QUALIFIED DOMESTIC RELATIONS

25 ORDER.—The terms ‘domestic relations
376

•S 2514 IS

1 order’ and ‘qualified domestic relations

2 order’ shall have the meanings provided in

3 section 414(p).

4 ‘‘(ii) MARITAL SHARE.—The term

5 ‘marital share’ means, in connection with

6 an accrued benefit under a pension plan,

7 the product derived by multiplying—

8 ‘‘(I) the actuarial present value

9 of the accrued benefit, by

10 ‘‘(II) a fraction, the numerator of

11 which is the period of time, during the

12 marriage between the spouse and the

13 participant in the plan, which con14 stitutes creditable service by the par15 ticipant under the plan, and the de16 nominator of which is the total period

17 of time which constitutes creditable

18 service by the participant under the

19 plan.

20 ‘‘(iii) QUALIFIED JOINT AND SURVI21 VOR ANNUITY.—The term ‘qualified joint

22 and survivor annuity’ has the meaning pro23 vided in section 417(b).
377

•S 2514 IS

1 ‘‘(D) REGULATIONS.—In prescribing regu2 lations under this paragraph, the Secretary

3 shall consult with the Secretary of Labor.’’; and

4 (B) in the last sentence, by striking ‘‘and

5 (20)’’ and inserting ‘‘(20), and (32)’’.

6 (2) CONFORMING AMENDMENTS.—

7 (A) Subparagraph (B) of section

8 401(a)(13) of such Code (relating to special

9 rules for domestic relations orders) is amended

10 by inserting ‘‘or if such creation, assignment, or

11 recognition pursuant to such order is necessary

12 for compliance with the requirements of para13 graph (32)’’ before the period.

14 (B) Subsection (p) of section 414 of such

15 Code (defining qualified domestic relations or16 ders) is amended—

17 (i) in paragraph (3)(C), by inserting

18 ‘‘or to a divorced spouse of the participant

19 in connection with a previously occurring

20 divorce as required under section

21 401(a)(32)’’ before the period; and

22 (ii) in paragraph (7)(C), by striking

23 ‘‘if there had been no order’’ and inserting

24 ‘‘in accordance with section 401(a)(32) as
378

•S 2514 IS

1 if there had been no qualified domestic re2 lations order’’.

3 (b) AMENDMENTS TO THE EMPLOYEE RETIREMENT

4 INCOME SECURITY ACT OF 1974.—

5 (1) IN GENERAL.—Section 206 of Employee

6 Retirement Income Security Act of 1974 (29 U.S.C.

7 1056) is amended by adding at the end the following

8 new subsection:

9 ‘‘(e)(1) In the case of a divorce of a participant in

10 a pension plan from a spouse who is, immediately before

11 the divorce, a beneficiary under the plan, the plan shall

12 provide that at least 50 percent of the marital share of

13 the accrued benefit of the participant under the plan

14 ceases to be an accrued benefit of such participant and

15 becomes an accrued benefit of such divorced spouse, deter16 mined and payable upon the earlier of the retirement of

17 the participant, the participant’s death, or the termination

18 of the plan, except to the extent that a qualified domestic

19 relations order in connection with such divorce provides

20 otherwise.

21 ‘‘(2) Paragraph (1) shall not be construed—

22 ‘‘(A) to require a plan to provide any type or

23 form of benefit, or any option, not otherwise pro24 vided under the plan,
379

•S 2514 IS

1 ‘‘(B) to require the plan to provide increased

2 benefits (determined on the basis of actuarial value),

3 ‘‘(C) to require the payment of benefits to the

4 divorced spouse which are required to be paid to an5 other individual in accordance with this subsection

6 or pursuant to a domestic relation order previously

7 determined to be a qualified domestic relations

8 order, or

9 ‘‘(D) to require payment of benefits to the di10 vorced spouse in the form of a joint and survivor an11 nuity to the divorced spouse and his or her subse12 quent spouse.

13 ‘‘(3) For purposes of this subsection—

14 ‘‘(A) The terms ‘domestic relations order’ and

15 ‘qualified domestic relations order’ shall have the

16 meanings provided in subsection (d)(3)(B).

17 ‘‘(B) The term ‘marital share’ means, in con18 nection with an accrued benefit under a pension

19 plan, the product derived by multiplying—

20 ‘‘(i) the actuarial present value of the ac21 crued benefit, by

22 ‘‘(ii) a fraction—

23 ‘‘(I) the numerator of which is the pe24 riod of time, during the marriage between

25 the spouse and the participant in the plan,
380

•S 2514 IS

1 which constitutes creditable service by the

2 participant under the plan, and

3 ‘‘(II) the denominator of which is the

4 total period of time which constitutes cred5 itable service by the participant under the

6 plan.

7 ‘‘(C) The term ‘qualified joint and survivor an8 nuity’ shall have the meaning provided in section

9 205(d).

10 ‘‘(4) In prescribing regulations under this subsection,

11 the Secretary shall consult with the Secretary of the

12 Treasury.’’.

13 (2) CONFORMING AMENDMENTS.—Section

14 206(d) of such Act (29 U.S.C. 1056(d)) is amend15 ed—

16 (A) in the first sentence of paragraph (3),

17 by inserting ‘‘or if such creation, assignment, or

18 recognition pursuant to such order is necessary

19 for compliance with the requirements of sub20 section (e)’’ before the period;

21 (B) in paragraph (3)(D)(iii), by inserting

22 ‘‘or to a divorced spouse of the participant in

23 connection with a previously occurring divorce

24 as required under subsection (e)’’ before the pe25 riod; and
381

•S 2514 IS

1 (C) in paragraph (3)(H)(iii), by striking

2 ‘‘if there had been no order’’ and inserting ‘‘in

3 accordance with subsection (e) as if there had

4 been no qualified domestic relations order’’.

5 SEC. 506. EFFECTIVE DATES.

6 (a) IN GENERAL.—Except as provided in subsection

7 (b), the amendments made by this Act, other than section

8 502, shall apply with respect to plan years beginning on

9 or after January 1, 1994, and the amendments made by

10 section 505 shall apply only with respect to divorces be11 coming final in such plan years.

12 (b) SPECIAL RULE FOR COLLECTIVELY BARGAINED

13 PLANS.—In the case of a plan maintained pursuant to 1

14 or more collective bargaining agreements between em15 ployee representatives and 1 or more employers ratified

16 on or before the date of the enactment of this Act, sub17 section (a) shall be applied to benefits pursuant to, and

18 individuals covered by, any such agreement by substituting

19 for ‘‘January 1, 1994’’ the date of the commencement of

20 the first plan year beginning on or after the earlier of—

21 (1) the later of—

22 (A) January 1, 1994, or

23 (B) the date on which the last of such col24 lective bargaining agreements terminates (de25 termined without regard to any extension there-
382

•S 2514 IS

1 of after the date of the enactment of this Act),

2 or

3 (2) January 1, 1996.

4 (c) PLAN AMENDMENTS.—If any amendment made

5 by this Act requires an amendment to any plan, such plan

6 amendment shall not be required to be made before the

7 first plan year beginning on or after January 1, 1994, if—

8 (1) during the period after such amendment

9 made by this Act takes effect and before such first

10 plan year, the plan is operated in accordance with

11 the requirements of such amendment made by this

12 Act, and

13 (2) such plan amendment applies retroactively

14 to the period after such amendment made by this

15 Act takes effect and such first plan year.

16 A plan shall not be treated as failing to provide definitely

17 determinable benefits or contributions, or to be operated

18 in accordance with the provisions of the plan, merely be19 cause it operates in accordance with this subsection.

20 SEC. 507. STUDY ON COST-OF-LIVING ADJUSTMENTS

21 UNDER PRIVATE PENSION PLANS.

22 (a) STUDY BY GENERAL ACCOUNTING OFFICE.—As

23 soon as possible after the date of the enactment of this

24 Act, the Comptroller General of the United States, in ac25 cordance with the authority provided under section
383

•S 2514 IS

1 11016(d) of the Single-Employer Pension Plan Amend2 ments Act of 1986 (100 Stat. 275), shall undertake a

3 thorough study with respect to alternative methods of re4 quiring employee pension benefit plans to provide cost-of5 living and other adjustments to benefits payable under

6 such plans.

7 (b) MATTERS TO BE STUDIED.—The Comptroller

8 General, in carrying out the study provided for in this sec9 tion, shall address, analyze, and report specifically on—

10 (1) the effect inflation is having and may be ex11 pected to have on women receiving private pension

12 benefits as either plan participants or beneficiaries,

13 (2) the number of plans which provide for cost14 of-living or other adjustments to benefits,

15 (3) the manner in which plans providing for

16 such adjustments determine when, and for whom, an

17 adjustment will be made,

18 (4) the frequency with which other plans make

19 cost-of-living and other benefit adjustments, and

20 how the determination to make such adjustments is

21 made,

22 (5) the possible application of funds currently

23 available for employer reversions for cost-of-living

24 and other benefit adjustments, and
384

•S 2514 IS

1 (6) the costs incurred in requiring such adjust2 ments to benefits.

3 (c) REPORT.—Not later than 2 years after the date

4 of the enactment of this Act, the Comptroller General shall

5 submit to the Committee on Ways and Means and the

6 Committee on Education and Labor of the House of Rep7 resentatives and the Committee on Finance and the Com8 mittee on Labor and Human Resources of the Senate a

9 report of the findings of the study provided for by this

10 section, together with any recommendations the Comptrol11 ler General considers appropriate.

12 SEC. 508. STUDY ON PENSION PORTABILITY.

13 (a) STUDY BY GENERAL ACCOUNTING OFFICE.—As

14 soon as possible after the date of the enactment of this

15 Act, the Comptroller General of the United States, in ac16 cordance with the authority provided under section

17 11016(d) of the Single-Employer Pension Plan Amend18 ments Act of 1986 (100 Stat. 275), shall undertake a

19 thorough study with respect to alternative pension port20 ability mechanisms, including mechanisms for promoting

21 portability of benefits, credited service, and current values

22 of cash distributions, for preserving and enhancing the

23 real value of deferred vested pension benefits.
385

•S 2514 IS

1 (b) MATTERS TO BE STUDIED.—The Comptroller

2 General, in carrying out the study provided for in this sec3 tion, shall address, analyze, and report specifically on—

4 (1) the types of possible portability mechanisms

5 for both defined benefit plans and defined contribu6 tion plans,

7 (2) the manner in which, and extent to which,

8 each mechanism would preserve and enhance the

9 real value of deferred vested benefits,

10 (3) the most effective ways to ensure that re11 tirement money will be used for retirement,

12 (4) the measures necessary to be taken to effec13 tively ensure that the joint and survivor annuity

14 form of benefit will be preserved,

15 (5) the existing rules under the Employee Re16 tirement Income Security Act of 1974, the Internal

17 Revenue Code of 1986, and other applicable provi18 sions of law which can be considered portability

19 mechanisms, their effectiveness, and the frequency

20 of their use, and

21 (6) the costs of establishing effective portability

22 mechanisms for both defined benefit plans and de23 fined contribution plans.

24 (c) REPORT.—Not later than 2 years after the date

25 of the enactment of this Act, the Comptroller General shall
386

•S 2514 IS

1 submit to the Committee on Ways and Means and the

2 Committee on Education and Labor of the House of Rep3 resentatives and the Committee on Finance and the Com4 mittee on Labor and Human Resources of the Senate a

5 report of the findings of the study provided for by this

6 section, together with any recommendations the Comptrol7 ler General considers appropriate.

8 SEC. 509. CLARIFICATION OF CONTINUED AVAILABILITY OF

9 REMEDIES RELATING TO MATTERS TREATED

10 IN DOMESTIC RELATIONS ORDERS ENTERED

11 BEFORE 1985.

12 (a) IN GENERAL.—In any case in which—

13 (1) under a prior domestic relations order en14 tered before January 1, 1985, in an action for di15 vorce—

16 (A) the right of a spouse under a pension

17 plan to an accrued benefit under such plan was

18 not divided between spouses,

19 (B) any right of a spouse with respect to

20 such an accrued benefit was waived without the

21 informed consent of such spouse, or

22 (C) the right of a spouse as a participant

23 under a pension plan to an accrued benefit

24 under such plan was divided so that the other

25 spouse received less than such other spouse’s
387

•S 2514 IS

1 pro rata share of the accrued benefit under the

2 plan, or

3 (2) a court of competent jurisdiction determines

4 that any further action is appropriate with respect

5 to any matter to which a prior domestic relations

6 order entered before such date applies,

7 nothing in the provisions of section 104, 204, or 303 of

8 the Retirement Equity Act of 1984 (Public Law 98–397)

9 or the amendments made thereby shall be construed to

10 require or permit the treatment, for purposes of such pro11 visions, of a domestic relations order, which is entered on

12 or after the date of the enactment of this Act and which

13 supercedes, amends the terms of, or otherwise affects such

14 prior domestic relations order, as other than a qualified

15 domestic relations order solely because such prior domestic

16 relations order was entered before January 1, 1985.

17 (b) DEFINITIONS.—For purposes of this section—

18 (1) IN GENERAL.—Terms used in this section

19 which are defined in section 3 of the Employee Re20 tirement Income Security Act of 1974 (29 U.S.C.

21 1002) shall have the meanings provided such terms

22 by such section.

23 (2) PRO RATA SHARE.—The term ‘‘pro rata

24 share’’ of a spouse means, in connection with an ac-
388

•S 2514 IS

1 crued benefit under a pension plan, 50 percent of

2 the product derived by multiplying—

3 (A) the actuarial present value of the ac4 crued benefit, by

5 (B) a fraction—

6 (i) the numerator of which is the pe7 riod of time, during the marriage between

8 the spouse and the participant in the plan,

9 which constitutes creditable service by the

10 participant under the plan, and

11 (ii) the denominator of which is the

12 total period of time which constitutes cred13 itable service by the participant under the

14 plan.

15 (3) PLAN.—All pension plans in which a person

16 has been a participant shall be treated as one plan

17 with respect to such person.

18 Subtitle C—Social Security Reform

19 SEC. 601. SHORT TITLE.

20 This subtitle may be cited as the ‘‘Social Security

21 Caregiver Act’’.

22 SEC. 602. INCREASE IN NUMBER OF YEARS DISREGARDED.

23 (a) IN GENERAL.—Section 215(b)(2) of the Social

24 Security Act (42 U.S.C. 415(b)(2)) is amended—
389

•S 2514 IS

1 (1) by striking the period at the end of clause

2 (ii) of subparagraph (A) and inserting a comma;

3 (2) by striking ‘‘Clause (ii), once’’ after and

4 below clause (ii) of subparagraph (A) and inserting

5 the following:

6 ‘‘and reduced further to the extent provided in subpara7 graph (B). Clause (ii), once’’;

8 (3) by striking ‘‘If an individual’’ in the matter

9 following clause (ii) of subparagraph (A) and all that

10 follows through the end of subparagraph (A);

11 (4) by redesignating subparagraph (B) as sub12 paragraph (F); and

13 (5) by inserting after subparagraph (A) the fol14 lowing new subparagraphs:

15 ‘‘(B) Subject to subparagraph (C), in any case in

16 which—

17 ‘‘(i) in any calendar year which is included in

18 an individual’s computation base years—

19 ‘‘(I) such individual is living with a child

20 (of such individual or his or her spouse) under

21 the age of 12, or

22 ‘‘(II) such individual is living with a child

23 (of such individual or his or her spouse), a par24 ent (of such individual or his or her spouse), or

25 such individual’s spouse while such child, par-
390

•S 2514 IS

1 ent, or spouse is a chronically dependent indi2 vidual,

3 ‘‘(ii) such calendar year is not disregarded pur4 suant to subparagraphs (A) and (E) (in determining

5 such individual’s benefit computation years) by rea6 son of the reduction in the number of such individ7 ual’s elapsed years under subparagraph (A), and

8 ‘‘(iii) at any time during or after such calendar

9 year and on or before the date of the application by

10 such individual for benefits based on such individ11 ual’s wages and self-employment income, such indi12 vidual submits to the Secretary, in such form as the

13 Secretary shall prescribe by regulations, a written

14 statement that the requirements of clause (i) are

15 met with respect to such calendar year,

16 then the number by which such elapsed years are reduced

17 under this paragraph pursuant to subparagraph (A) shall

18 be increased by one (up to a combined total not exceeding

19 5) for each such calendar year.

20 ‘‘(C)(i)(I) No calendar year shall be disregarded by

21 reason of subparagraph (B) (in determining such individ22 ual’s benefit computation years) unless the individual had

23 less than the applicable dollar amount (in effect for such

24 calendar year under this clause) of earnings as described

25 in section 203(f)(5) for such year.
391

•S 2514 IS

1 ‘‘(II) Except as otherwise provided in subclause (III),

2 the applicable dollar amount in effect under this clause

3 for any calendar year is $2,000.

4 ‘‘(III) In each calendar year after 1993, the Sec5 retary shall determine and publish in the Federal Register,

6 on or before November 1 of such calendar year, the appli7 cable dollar amount which shall be effective under this

8 clause for the next calendar year. Such dollar amount shall

9 be equal to the larger of the applicable dollar amount

10 which is effective under this clause for the calendar year

11 in which such determination is made or, subject to

12 subclause (VII), the product described in subclause (IV).

13 ‘‘(IV) The product described in this subclause is the

14 product derived by multiplying the applicable dollar

15 amount which is effective under this clause for the cal16 endar year in which the determination under subclause

17 (III) is made, by the ratio of the amount described in

18 subclause (V) to the amount described in subclause (VI).

19 ‘‘(V) The amount described in this subclause is the

20 deemed average total wages (as defined in section

21 209(k)(1)) for the calendar year before the calendar year

22 in which the determination under subclause (III) is made.

23 ‘‘(VI) The amount described in this subclause is the

24 deemed average total wages (as defined in section

25 209(k)(1)) for 1992 or, if later, the calendar year before
392

•S 2514 IS

1 the most recent calendar year in which a determination

2 resulting in an increase in the applicable dollar amount

3 was made under subclause (III).

4 ‘‘(VII) If the product described in subclause (IV) is

5 not a multiple of $1.00, such product shall be rounded

6 to the next higher multiple of $1.00 in any case in which

7 such product is a multiple of $0.50 but not of $1.00, and

8 to the nearest multiple of $1.00 in any other case.

9 ‘‘(ii) No calendar year shall be disregarded by reason

10 of subparagraph (B) (in determining such individual’s

11 benefit computation years) in connection with a child re12 ferred to in subparagraph (B)(i)(I) (and not referred to

13 in subparagraph (B)(i)(II)) unless the individual was liv14 ing with the child substantially throughout the period in

15 such year in which the child was alive and under the age

16 of 12 in such year.

17 ‘‘(iii) No calendar year shall be disregarded by reason

18 of subparagraph (B) (in determining such individual’s

19 benefit computation years) in connection with a child, par20 ent, or spouse referred to in subparagraph (B)(i)(II) un21 less the individual was living with such child, parent, or

22 spouse substantially throughout a period of 180 consecu23 tive days in such year throughout which such child, par24 ent, or spouse was a chronically dependent individual.
393

•S 2514 IS

1 ‘‘(iv) The particular calendar years to be disregarded

2 under this subparagraph (in determining such benefit

3 computation years) shall be those years (not otherwise dis4 regarded under subparagraph (A)) which, before the appli5 cation of subsection (f), meet the conditions of the preced6 ing provisions of this subparagraph.

7 ‘‘(v) This subparagraph shall apply only to the extent

8 that its application would not result in a lower primary

9 insurance amount.

10 ‘‘(D)(i) For purposes of this paragraph, the term

11 ‘chronically dependent individual’ means an individual

12 who—

13 ‘‘(I) is dependent on a daily basis on another

14 person who is living with the individual and is assist15 ing the individual without monetary compensation in

16 the performance of at least 2 of the activities of

17 daily living (described in clause (ii)), and

18 ‘‘(II) without such assistance could not perform

19 such activities of daily living.

20 ‘‘(ii) The ‘activities of daily living’, referred to in

21 clause (i), are the following:

22 ‘‘(I) Eating.

23 ‘‘(II) Bathing.

24 ‘‘(III) Dressing.

25 ‘‘(IV) Toileting.
394

•S 2514 IS

1 ‘‘(V) Transferring in and out of a bed or in and

2 out of a chair.

3 ‘‘(E) The number of an individual’s benefit computa4 tion years as determined under this paragraph shall in no

5 case be less than 2.’’.

6 SEC. 603. EFFECTIVE DATE AND RELATED PROVISIONS.

7 (a) IN GENERAL.—The amendments made by this

8 Act shall apply only with respect to computation base

9 years after 1982, and only with respect to benefits payable

10 for months after December 1993.

11 (b) NOTICE AND PROCEDURES.—

12 (1) 60-DAY GRACE PERIOD AFTER INITIAL ISSU13 ANCE OF FINAL REGULATIONS FOR CURRENT BENE14 FICIARIES AND APPLICANTS.—The requirements of

15 clause (iii) of section 215(b)(2)(B) of the Social Se16 curity Act (as amended by this Act) shall be treated

17 as satisfied, in the case of a statement—

18 (A) which is filed by an individual who is,

19 as of the date of the first issuance in final form

20 of the regulations required under such clause, a

21 recipient of monthly benefits under section

22 202(a) or 223 of the Social Security Act, or an

23 applicant for such benefits, and
395

•S 2514 IS

1 (B) with respect to which the requirements

2 of such clause would be met but for the date of

3 the filing of such statement,

4 if such statement is submitted to the Secretary of

5 Health and Human Services not later than 60 days

6 after the date of the first issuance in final form of

7 such regulations.

8 (2) NOTICE REQUIREMENTS.—

9 (A) NOTICE TO CURRENT BENEFICIARIES

10 AND APPLICANTS.—The Secretary of Health

11 and Human Services shall issue, not later than

12 the date of the first issuance in final form of

13 the regulations required under clause (iii) of

14 section 215(b)(2)(B) of the Social Security Act

15 (as amended by this Act), regulations establish16 ing procedures to ensure that—

17 (i) persons who are, as of such date,

18 recipients of monthly benefits under sec19 tion 202(a) or 223 of the Social Security

20 Act, or applicants for such benefits, are

21 fully informed of the amendments made by

22 this Act; and

23 (ii) such persons are invited to com24 ply, and given a reasonable opportunity to

25 comply, with the requirements of section
396

•S 2514 IS

1 215(b)(2)(B)(iii) of the Social Security Act

2 (as amended by this Act), as provided in

3 paragraph (1).

4 Upon receiving from a recipient described in

5 clauses (i) and (ii) a written statement referred

6 to in clause (iii) of section 215(b)(2)(B) of the

7 Social Security Act (as amended by this Act)

8 with respect to which the requirements of such

9 clause are treated as satisfied, the Secretary

10 shall redetermine the amount of such benefits

11 to the extent necessary to take into account the

12 amendments made by this Act (and if such re13 determination results in an increase in such

14 amount the increase shall be effective as pro15 vided in subsection (a)).

16 (B) NOTICE TO FUTURE APPLICANTS.—

17 Such regulations required under subparagraph

18 (A) shall also provide procedures to ensure that

19 applicants for benefits under section 202(a) or

20 223 of the Social Security Act are given the op21 portunity, at the time of their application, to in22 dicate and verify any additional years which

23 may be disregarded under section 215(b)(2)(B)

24 of the Social Security Act (as amended by this

25 Act).
397

•S 2514 IS

1 SEC. 604. REPEAL OF 7-YEAR RESTRICTION ON ELIGIBILITY

2 FOR WIDOW’S AND WIDOWER’S INSURANCE

3 BENEFITS BASED ON DISABILITY.

4 (a) WIDOW’S INSURANCE BENEFITS.—

5 (1) IN GENERAL.—Section 202(e) of the Social

6 Security Act (42 U.S.C. 402(e)) is amended—

7 (A) in paragraph (1)(B)(ii), by striking

8 ‘‘which began before the end of the period spec9 ified in paragraph (4)’’;

10 (B) in paragraph (1)(F)(ii), by striking

11 ‘‘(I) in the period specified in paragraph (4)

12 and (II)’’;

13 (C) by striking paragraph (4) and by re14 designating paragraphs (5) through (9) as

15 paragraphs (4) through (8), respectively; and

16 (D) in paragraph (4)(A)(ii) (as redesig17 nated), by striking ‘‘whichever’’ and all that fol18 lows through ‘‘begins’’ and inserting ‘‘the first

19 day of the seventeenth month before the month

20 in which her application is filed’’.

21 (2) CONFORMING AMENDMENTS.—

22 (A) Section 202(e)(1)(F)(i) of such Act

23 (42 U.S.C. 402(e)(1)(F)(i)) is amended by

24 striking ‘‘paragraph (5)’’ and inserting ‘‘para25 graph (4)’’.
398

•S 2514 IS

1 (B) Section 202(e)(1)(C)(ii)(III) of such

2 Act (42 U.S.C. 402(e)(2)(C)(ii)(III)) is amend3 ed by striking ‘‘paragraph (8)’’ and inserting

4 ‘‘paragraph (7)’’.

5 (C) Section 202(e)(2)(A) of such Act (42

6 U.S.C. 402(e)(2)(A)) is amended by striking

7 ‘‘paragraph (7)’’ and inserting ‘‘paragraph

8 (6)’’.

9 (D) Section 226(e)(1)(A)(i) of such Act

10 (42 U.S.C. 426(e)(1)(A)(i)) is amended by

11 striking ‘‘202(e)(4)’’.

12 (b) WIDOWER’S INSURANCE BENEFITS.—

13 (1) IN GENERAL.—Section 202(f) of such Act

14 (42 U.S.C. 402(f)) is amended—

15 (A) in paragraph (1)(B)(ii), by striking

16 ‘‘which began before the end of the period spec17 ified in paragraph (5)’’;

18 (B) in paragraph (1)(F)(ii), by striking

19 ‘‘(I) in the period specified in paragraph (5)

20 and (II)’’;

21 (C) by striking paragraph (5) and by re22 designating paragraphs (6) through (9) as

23 paragraphs (5) through (8), respectively; and

24 (D) in paragraph (5)(A)(ii) (as redesig25 nated), by striking ‘‘whichever’’ and all that fol-
399

•S 2514 IS

1 lows through ‘‘begins’’ and inserting ‘‘the first

2 day of the seventeenth month before the month

3 in which his application is filed’’.

4 (2) CONFORMING AMENDMENTS.—

5 (A) Section 202(f)(1)(F)(i) of such Act (42

6 U.S.C. 402(f)(1)(F)(i)) is amended by striking

7 ‘‘paragraph (6)’’ and inserting ‘‘paragraph

8 (5)’’.

9 (B) Section 202(f)(1)(C)(ii)(III) of such

10 Act (42 U.S.C. 402(f)(2)(C)(ii)(III)) is amend11 ed by striking ‘‘paragraph (8)’’ and inserting

12 ‘‘paragraph (7)’’.

13 (C) Section 226(e)(1)(A)(i) of such Act (as

14 amended by subsection (a)(2)) is further

15 amended by striking ‘‘, 202(f)(1)(B)(2), and

16 202(f)(5)’’ and inserting ‘‘and

17 202(f)(1)(B)(2)’’.

18 (c) EFFECTIVE DATE.—The amendments made by

19 this section shall apply with respect to benefits for months

20 after December 1993 for which applications are filed or

21 pending on or after January 1, 1994.
400

•S 2514 IS

1 SEC. 605. FULL BENEFITS FOR DISABLED WIDOWS AND

2 WIDOWERS WITHOUT REGARD TO AGE.

3 (a) ELIGIBILITY FOR WIDOW’S INSURANCE BENE4 FITS.—Section 202(e) of the Social Security Act (42

5 U.S.C. 402(e)) is amended—

6 (1) in paragraph (1)(B), by striking ‘‘has at7 tained age 50 but has not attained age 60 and’’;

8 (2) in paragraph (3)(A), by striking ‘‘after at9 taining age 50 if she was entitled before such mar10 riage occurred’’ and inserting ‘‘after having been en11 titled’’; and

12 (3) in paragraph (3)(B), by striking ‘‘after at13 taining age 50’’.

14 (b) ELIGIBILITY OF WIDOWER’S INSURANCE BENE15 FITS.—Section 202(f) of such Act (42 U.S.C. 402(f)) is

16 amended—

17 (1) in paragraph (1)(B), by striking ‘‘has at18 tained age 50 but has not attained age 60 and’’;

19 (2) in paragraph (3)(A), by striking ‘‘after at20 taining age 50 if he was entitled before such mar21 riage occurred’’ and inserting ‘‘after having been en22 titled’’; and

23 (3) in paragraph (3)(B), by striking ‘‘after at24 taining age 50’’.
401

•S 2514 IS

1 SEC. 606. EXEMPTION FROM REDUCTIONS IN BENEFITS.

2 Section 202(q) of the Social Security Act (42 U.S.C.

3 402(q)) is amended—

4 (1) in paragraph (3)(A), by striking ‘‘age 50’’

5 and inserting ‘‘age 60’’; and

6 (2) by adding at the end the following new

7 paragraph:

8 ‘‘(12) Notwithstanding any other provision of this

9 section, there shall be no reduction under this subsection

10 in the widow’s or widower’s insurance benefit of an indi11 vidual for any month in which such individual is under

12 a disability (as defined in section 223(d)); and none of

13 the provisions of this subsection shall apply with respect

14 to such benefit even though such benefit may have been

15 so reduced prior to the onset of such disability.’’.

16 SEC. 607. EFFECTIVE DATE AND REDETERMINATION OF

17 BENEFITS.

18 The amendments made by this Act shall apply with

19 respect to monthly insurance benefits payable under title

20 II of the Social Security Act for months after the month

21 in which this Act is enacted. The Secretary of Health and

22 Human Services (without the necessity of any application

23 therefor) shall redetermine the amount of any widow’s or

24 widower’s insurance benefit which is payable for the

25 month in which this Act is enacted in order to reflect such

26 amendments as provided in the preceding sentence.
402

•S 2514 IS

1 Subtitle D—Former Military

2 Spouses Protection

3 SEC. 701. APPLICABILITY TO PREVIOUS DIVORCES OF

4 CHANGE IN RULES FOR COMPUTING MAXI5 MUM FORMER SPOUSE SHARE OF MILITARY

6 RETIRED PAY.

7 (a) CHANGE IN APPLICABILITY.—Paragraph (2) of

8 section 555(e) of the National Defense Authorization Act

9 for Fiscal Year 1991 (Public Law 101–510; 104 Stat.

10 1570) is amended to read as follows:

11 ‘‘(2) The amendments made by subsections (b), (c),

12 and (d) apply to divorces, dissolutions of marriage, annul13 ments, and legal separations that become effective at any

14 time, whether before, on, or after the date of the enact15 ment of this Act.’’.

16 (b) EFFECTIVE DATE OF CHANGES.—Any change in

17 payments of military retired or retainer pay by reason of

18 subsection (a) may apply only to payments of military re19 tired or retainer pay payable for months beginning after

20 the end of the 90-day period beginning on the date of the

21 enactment of this Act.
403

•S 2514 IS

1 Subtitle E—Unremunerated Work

2 Act

3 SEC. 801. SHORT TITLE.

4 This subtitle may be cited as the ‘‘Unremunerated

5 Work Act’’.

6 SEC. 802. FINDINGS.

7 The Congress finds the following:

(1) Women perform 2 8 ⁄3 of the work in the world

9 relating to the production of goods and services.

10 (2) The United Nations General Assembly in

11 1985 adopted a resolution which included part of the

12 Forward Looking Strategies for the Advancement of

13 Women, which states that ‘‘the remunerated and, in

14 particular, the unremunerated contributions of

15 women to all aspects and sectors of development

16 should be recognized, and appropriate efforts should

17 be made to measure and reflect these contributions

18 in national accounts and economic statistics and in

19 the gross national product’’.

20 (3) The resolution also states that ‘‘concrete

21 steps should be taken to quantify the unremunerated

22 contribution of women to agriculture, food produc23 tion, reproduction, and household activities’’.
404

•S 2514 IS

1 (4) The unremunerated contribution by women

2 to the economy of the United States should be rec3 ognized.

4 SEC. 803. CALCULATION OF MONETARY VALUE OF

5 UNREMUNERATED WORK.

6 (a) TIME USE SURVEYS OF UNREMUNERATED

7 WORK.—The Commissioner of the Bureau of Labor Sta8 tistics shall periodically conduct time use surveys of

9 unremunerated work performed in the United States, in10 cluding household work, work related to child care and

11 other care services, agricultural work, work related to food

12 production, work related to family businesses, and volun13 teer work.

14 (b) MONETARY VALUE OF UNREMUNERATED

15 WORK.—On the basis of the time use surveys of

16 unremunerated work conducted under subsection (a), the

17 Commissioner shall calculate the monetary value of such

18 unremunerated work. Separate monetary values shall be

19 calculated for men and women.

20 (c) INCLUSION IN GROSS NATIONAL PRODUCT.—Be21 ginning three years after the date of the enactment of this

22 Act, the monetary value of the unremunerated work cal23 culated pursuant to subsection (b) shall be included in sta24 tistics used to determine the annual gross national product

25 of the United States.
405

•S 2514 IS

1 (d) METHOD OF CALCULATION.—Not later than 90

2 days after the date of the enactment of this Act, the Com3 missioner shall submit a report to the Congress describing

4 the method by which the Commissioner will conduct time

5 use surveys of unremunerated work performed in the

6 United States and calculate the monetary value of such

7 unremunerated work.

Æ

S 2514 IS——2

S 2514 IS——3

S 2514 IS——4

S 2514 IS——5

S 2514 IS——6

S 2514 IS——7

S 2514 IS——8

S 2514 IS——9

S 2514 IS——10

S 2514 IS——11

S 2514 IS——12

S 2514 IS——13

S 2514 IS——14