II

104TH CONGRESS

2D SESSION H. R. 4194

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 27, 1996

Received

AN ACT

To reauthorize alternative means of dispute resolution in

the Federal administrative process, and for other purposes.

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 ‘‘Administrative Dispute

5 Resolution Act of 1996’’.
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1 SEC. 2. AMENDMENT TO DEFINITIONS.

2 Section 571 of title 5, United States Code, is amend3 ed—

4 (1) in paragraph (3)—

5 (A) by striking ‘‘, in lieu of an adjudication

6 as defined in section 551(7) of this title,’’;

7 (B) by striking ‘‘settlement negotiations,’’;

8 and

9 (C) by striking ‘‘and arbitration’’ and in10 serting ‘‘arbitration, and use of ombuds’’; and

11 (2) in paragraph (8)—

12 (A) in subparagraph (B) by striking ‘‘deci13 sion,’’ and inserting ‘‘decision;’’; and

14 (B) by striking the matter following sub15 paragraph (B).

16 SEC. 3. AMENDMENTS TO CONFIDENTIALITY PROVISIONS.

17 (a) LIMITATION OF CONFIDENTIALITY APPLICATION

18 TO COMMUNICATION.—Subsections (a) and (b) of section

19 574 of title 5, United States Code, are each amended in

20 the matter before paragraph (1) by striking ‘‘any informa21 tion concerning’’.

22 (b) DISPUTE RESOLUTION COMMUNICATION.—Sec23 tion 574(b)(7) of title 5, United States Code, is amended

24 to read as follows:

25 ‘‘(7) except for dispute resolution communica26 tions generated by the neutral, the dispute resolution
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1 communication was provided to or was available to

2 all parties to the dispute resolution proceeding.’’.

3 (c) ALTERNATIVE CONFIDENTIALITY PROCE4 DURES.—Section 574(d) of title 5, United States Code,

5 is amended—

6 (1) by inserting ‘‘(1)’’ after ‘‘(d)’’; and

7 (2) by adding at the end thereof the following

8 new paragraph:

9 ‘‘(2) To qualify for the exemption established under

10 subsection (j), an alternative confidential procedure under

11 this subsection may not provide for less disclosure than

12 the confidential procedures otherwise provided under this

13 section.’’.

14 (d) EXEMPTION FROM DISCLOSURE BY STATUTE.—

15 Section 574 of title 5, United States Code, is amended

16 by amending subsection (j) to read as follows:

17 ‘‘(j) A dispute resolution communication which is be18 tween a neutral and a party and which may not be dis19 closed under this section shall also be exempt from disclo20 sure under section 552(b)(3).’’.

21 SEC. 4. AMENDMENT TO REFLECT THE CLOSURE OF THE

22 ADMINISTRATIVE CONFERENCE.

23 (a) PROMOTION OF ADMINISTRATIVE DISPUTE RES24 OLUTIONS.—Section 3(a)(1) of the Administrative Dis-
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1 pute Resolution Act (5 U.S.C. 571 note; Public Law 101–

2 552; 104 Stat. 2736) is amended to read as follows:

3 ‘‘(1) consult with the agency designated by, or

4 the interagency committee designated or established

5 by, the President under section 573 of title 5, Unit6 ed States Code, to facilitate and encourage agency

7 use of alternative dispute resolution under sub8 chapter IV of chapter 5 of such title; and’’.

9 (b) COMPILATION OF INFORMATION.—

10 (1) IN GENERAL.—Section 582 of title 5,

11 United States Code, is repealed.

12 (2) TECHNICAL AND CONFORMING AMEND13 MENT.—The table of sections for chapter 5 of title

14 5, United States Code, is amended by striking the

15 item relating to section 582.

16 (c) FEDERAL MEDIATION AND CONCILIATION SERV17 ICE.—Section 203(f) of the Labor Management Relations

18 Act, 1947 (29 U.S.C. 173(f)) is amended by striking ‘‘the

19 Administrative Conference of the United States and other

20 agencies’’ and inserting ‘‘the agency designated by, or the

21 interagency committee designated or established by, the

22 President under section 573 of title 5, United States

23 Code,’’.
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1 SEC. 5. AMENDMENTS TO SUPPORT SERVICES PROVISION.

2 Section 583 of title 5, United States Code, is amend3 ed by inserting ‘‘State, local, and tribal governments,’’

4 after ‘‘other Federal agencies,’’.

5 SEC. 6. AMENDMENTS TO THE CONTRACT DISPUTES ACT.

6 Section 6 of the Contract Disputes Act of 1978 (41

7 U.S.C. 605) is amended—

8 (1) in subsection (d) by striking the second sen9 tence and inserting: ‘‘The contractor shall certify the

10 claim when required to do so as provided under sub11 section (c)(1) or as otherwise required by law.’’; and

12 (2) in subsection (e) by striking the first sen13 tence.

14 SEC. 7. AMENDMENTS ON ACQUIRING NEUTRALS.

15 (a) EXPEDITED HIRING OF NEUTRALS.—

16 (1) COMPETITIVE REQUIREMENTS IN DEFENSE

17 AGENCY CONTRACTS.—Section 2304(c)(3)(C) of title

18 10, United States Code, is amended by striking

19 ‘‘agency, or’’ and inserting ‘‘agency, or to procure

20 the services of an expert or neutral for use’’.

21 (2) COMPETITIVE REQUIREMENTS IN FEDERAL

22 CONTRACTS.—Section 303(c)(3)(C) of the Federal

23 Property and Administrative Services Act of 1949

24 (41 U.S.C. 253(c)(3)(C)), is amended by striking

25 ‘‘agency, or’’ and inserting ‘‘agency, or to procure

26 the services of an expert or neutral for use’’.
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1 (b) REFERENCES TO THE ADMINISTRATIVE CON2 FERENCE OF THE UNITED STATES.—Section 573 of title

3 5, United States Code, is amended—

4 (1) by striking subsection (c) and inserting the

5 following:

6 ‘‘(c) The President shall designate an agency or des7 ignate or establish an interagency committee to facilitate

8 and encourage agency use of dispute resolution under this

9 subchapter. Such agency or interagency committee, in con10 sultation with other appropriate Federal agencies and pro11 fessional organizations experienced in matters concerning

12 dispute resolution, shall—

13 ‘‘(1) encourage and facilitate agency use of al14 ternative means of dispute resolution; and

15 ‘‘(2) develop procedures that permit agencies to

16 obtain the services of neutrals on an expedited

17 basis.’’; and

18 (2) in subsection (e) by striking ‘‘on a roster es19 tablished under subsection (c)(2) or a roster main20 tained by other public or private organizations, or

21 individual’’.

22 SEC. 8. ARBITRATION AWARDS AND JUDICIAL REVIEW.

23 (a) ARBITRATION AWARDS.—Section 580 of title 5,

24 United States Code, is amended—

25 (1) by striking subsections (c), (f), and (g); and
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1 (2) by redesignating subsections (d) and (e) as

2 subsections (c) and (d), respectively.

3 (b) JUDICIAL AWARDS.—Section 581(d) of title 5,

4 United States Code, is amended—

5 (1) by striking ‘‘(1)’’ after ‘‘(b)’’; and

6 (2) by striking paragraph (2).

7 (c) AUTHORIZATION OF ARBITRATION.—Section 575

8 of title 5, United States Code, is amended—

9 (1) in subsection (a)(2), by striking ‘‘Any’’ and

10 inserting ‘‘The’’;

11 (2) in subsection (a)(2), by adding at the end

12 the following: ‘‘Each such arbitration agreement

13 shall specify a maximum award that may be issued

14 by the arbitrator and may specify other conditions

15 limiting the range of possible outcomes.’’;

16 (3) in subsection (b)—

17 (A) by striking ‘‘may offer to use arbitra18 tion for the resolution of issues in controversy,

19 if’’ and inserting ‘‘shall not offer to use arbitra20 tion for the resolution of issues in controversy

21 unless’’; and

22 (B) by striking in paragraph (1) ‘‘has au23 thority’’ and inserting ‘‘would otherwise have

24 authority’’; and

25 (4) by adding at the end the following:
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1 ‘‘(c) Prior to using binding arbitration under this

2 subchapter, the head of an agency, in consultation with

3 the Attorney General and after taking into account the

4 factors in section 572(b), shall issue guidance on the ap5 propriate use of binding arbitration and when an officer

6 or employee of the agency has authority to settle an issue

7 in controversy through binding arbitration.’’.

8 SEC. 9. PERMANENT AUTHORIZATION OF THE ALTER9 NATIVE DISPUTE RESOLUTION PROVISIONS

10 OF TITLE 5, UNITED STATES CODE.

11 The Administrative Dispute Resolution Act (Public

12 Law 101–552; 104 Stat. 2747; 5 U.S.C. 571 note) is

13 amended by striking section 11.

14 SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

15 (a) IN GENERAL.—Subchapter IV of title 5, United

16 States Code, is amended by adding at the end thereof the

17 following new section:

18 ‘‘§ 584. Authorization of appropriations

19 ‘‘There are authorized to be appropriated such sums

20 as may be necessary to carry out the purposes of this sub21 chapter.’’.

22 (b) TECHNICAL AND CONFORMING AMENDMENT.—

23 The table of sections for chapter 5 of title 5, United States

24 Code, is amended by inserting after the item relating to

25 section 583 the following:

‘‘584. Authorization of appropriations.’’.
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1 SEC. 11. REAUTHORIZATION OF NEGOTIATED RULEMAKING

2 ACT OF 1990.

3 (a) PERMANENT REAUTHORIZATION.—Section 5 of

4 the Negotiated Rulemaking Act of 1990 (Public Law 101–

5 648; 5 U.S.C. 561 note) is repealed.

6 (b) CLOSURE OF ADMINISTRATIVE CONFERENCE.—

7 (1) IN GENERAL.—Section 569 of title 5, Unit8 ed States Code, is amended—

9 (A) by amending the section heading to

10 read as follows:

11 ‘‘§ 569. Encouraging negotiated rulemaking’’; and

12 (B) by striking subsections (a) through (g)

13 and inserting the following:

14 ‘‘(a) The President shall designate an agency or des15 ignate or establish an interagency committee to facilitate

16 and encourage agency use of negotiated rulemaking. An

17 agency that is considering, planning, or conducting a ne18 gotiated rulemaking may consult with such agency or com19 mittee for information and assistance.

20 ‘‘(b) To carry out the purposes of this subchapter,

21 an agency planning or conducting a negotiated rulemaking

22 may accept, hold, administer, and utilize gifts, devises,

23 and bequests of property, both real and personal if that

24 agency’s acceptance and use of such gifts, devises, or be25 quests do not create a conflict of interest. Gifts and be26 quests of money and proceeds from sales of other property
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1 received as gifts, devises, or bequests shall be deposited

2 in the Treasury and shall be disbursed upon the order of

3 the head of such agency. Property accepted pursuant to

4 this section, and the proceeds thereof, shall be used as

5 nearly as possible in accordance with the terms of the

6 gifts, devises, or bequests.’’.

7 (2) TECHNICAL AND CONFORMING AMEND8 MENT.—The table of sections for chapter 5 of title

9 5, United States Code, is amended by striking the

10 item relating to section 569 and inserting the follow11 ing:

‘‘569. Encouraging negotiated rulemaking.’’.

12 (c) EXPEDITED HIRING OF CONVENORS AND

13 FACILITATORS.—

14 (1) DEFENSE AGENCY CONTRACTS.—Section

15 2304(c)(3)(C) of title 10, United States Code, is

16 amended by inserting ‘‘or negotiated rulemaking’’

17 after ‘‘alternative dispute resolution’’.

18 (2) FEDERAL CONTRACTS.—Section

19 303(c)(3)(C) of the Federal Property and Adminis20 trative Services Act of 1949 (41 U.S.C.

21 253(c)(3)(C)), is amended by inserting ‘‘or nego22 tiated rulemaking’’ after ‘‘alternative dispute

23 resolution’’.

24 (d) AUTHORIZATION OF APPROPRIATIONS.—
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1 (1) IN GENERAL.—Subchapter III of title 5,

2 United States Code, is amended by adding at the

3 end thereof the following new section:

4 ‘‘§ 570a. Authorization of appropriations

5 ‘‘There are authorized to be appropriated such sums

6 as may be necessary to carry out the purposes of this sub7 chapter.’’.

8 (2) TECHNICAL AND CONFORMING AMEND9 MENT.—The table of sections for chapter 5 of title

10 5, United States Code, is amended by inserting after

11 the item relating to section 570 the following:

‘‘570a. Authorization of appropriations.’’.

12 (e) NEGOTIATED RULEMAKING COMMITTEES.—The

13 Director of the Office of Management and Budget shall—

14 (1) within 180 days of the date of the enact15 ment of this Act, take appropriate action to expedite

16 the establishment of negotiated rulemaking commit17 tees and committees established to resolve disputes

18 under the Administrative Dispute Resolution Act, in19 cluding, with respect to negotiated rulemaking com20 mittees, eliminating any redundant administrative

21 requirements related to filing a committee charter

22 under section 9 of the Federal Advisory Committee

23 Act (5 U.S.C. App.) and providing public notice of

24 such committee under section 564 of title 5, United

25 States Code; and
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1 (2) within one year of the date of the enact2 ment of this Act, submit recommendations to Con3 gress for any necessary legislative changes.

Passed the House of Representatives September 27,

1996.

Attest: ROBIN H. CARLE,

Clerk.