I

103D CONGRESS

1ST SESSION H. R. 2790

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 HOUSE OF REPRESENTATIVES

JULY 28, 1993

Mrs. SCHROEDER (for herself, Ms. SNOWE, Mrs. MINK, Ms. BROWN of Florida, Mrs. COLLINS of Illinois, Miss COLLINS of Michigan, Ms. DELAURO,

Ms. ESHOO, Ms. HARMAN, Mrs. JOHNSON of Connecticut, Ms. KAPTUR,

Mrs. KENNELLY, Ms. LAMBERT, Mrs. LLOYD, Mrs. LOWEY, Mrs. MEEK,

Mrs. MORELLA, Ms. NORTON, Ms. PELOSI, Ms. ROYBAL-ALLARD, Ms.

SCHENK, Mrs. UNSOELD, Ms. VELA ́ZQUEZ, Ms. WATERS, Ms. WOOLSEY,

Mr. DELLUMS, Mr. FRANK of Massachusetts, Mr. LAFALCE, Mr.

MCDERMOTT, Mr. MORAN, Mr. RANGEL, Mr. REED, Mr. SAWYER, Mr.

STOKES, and Mr. STUDDS) introduced the following bill; which was referred jointly to the Committees on Education and Labor, Post Office

and Civil Service, House Administration, Rules, Ways and Means, Small

Business, Banking, Finance and Urban Affairs, the Judiciary, Natural

Resources, Foreign Affairs, and Armed Services

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
2

•HR 2790 IH

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

5 of 1993’’.

6 TITLE I—WORKPLACE FAIRNESS

7 Subtitle A—Equal Remedies Act

8 SEC. 101. SHORT TITLE.

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

10 Act of 1993’’.

11 SEC. 102. EQUALIZATION OF REMEDIES.

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

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

14 (1) in subsection (b)—

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

16 (B) by redesignating paragraph (4) as

17 paragraph (3), and

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

19 and all that follows through the period, and insert20 ing ‘‘section, any party may demand a jury trial.’’.
3

•HR 2790 IH

1 Subtitle B—Federal Employees

2 Fairness Act

3 SEC. 111. SHORT TITLE.

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

5 Fairness Act of 1993’’.

6 SEC. 112. AMENDMENTS RELATING TO ADMINISTRATIVE

7 DETERMINATION OF FEDERAL EMPLOYEE

8 DISCRIMINATION CLAIMS.

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

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

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

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

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

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

15 ‘‘(o) The term ‘Commission’ means the Equal Em16 ployment Opportunity Commission.

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

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

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

20 ‘‘(q) The term ‘Federal employee’ means an individ21 ual employed by, or who applies for employment with, an

22 entity of the Federal Government.

23 ‘‘(r) The term ‘Federal employment’ means employ24 ment by an entity of the Federal Government.
4

•HR 2790 IH

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

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

3 Federal Government.’’.

4 (b) EEOC DETERMINATION OF FEDERAL EMPLOY5 MENT DISCRIMINATION CLAIMS.—Section 717 of the Civil

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

7 (1) in subsection (b)—

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

9 (B) in the second sentence—

10 (i) by redesignating paragraphs (1),

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

12 and (C), respectively,

13 (ii) in the subparagraph (B), as so re14 designated, by striking ‘‘and’’ at the end,

15 (iii) in subparagraph (C), as so redes16 ignated, by striking the period at the end

17 and inserting ‘‘; and’’, and

18 (iv) by inserting after subparagraph

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

20 ‘‘(D) require each entity of the Federal Govern21 ment—

22 ‘‘(i) to make counseling available to Fed23 eral employees who choose to notify such entity

24 that they believe such entity has discriminated

25 against them in violation of subsection (a), for
5

•HR 2790 IH

1 the purpose of trying to resolve the matters

2 with respect to which such discrimination is al3 leged (Such entity shall assist such employee to

4 identify the respondent required by subsection

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

6 violation, shall inform such Federal employee

7 individually of the procedures and deadlines

8 that apply under this section to a claim alleging

9 such discrimination, and shall make such coun10 seling available throughout the administrative

11 process.);

12 ‘‘(ii) to establish a voluntary alternative

13 dispute process to resolve complaints, except

14 that a Federal employee’s decision to forgo such

15 process shall not affect the rights of such em16 ployee under this title;

17 ‘‘(iii) not to discourage Federal employees

18 from filing complaints on any matter relating to

19 discrimination in violation of this section; and

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

21 participate in counseling made available under

22 clause (i) or in a dispute resolution process

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

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

25 and inserting the following:
6

•HR 2790 IH

1 ‘‘(2) The’’,

2 (D) in the fourth sentence by redesignating

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

4 and (B), respectively,

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

6 and inserting the following:

7 ‘‘(3) With’’, and

8 (F) by adding at the end the following:

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

10 employment practice of the kind described in section

11 704(a) is established under this section if an employee or

12 applicant for employment demonstrates that his making

13 a charge, testifying, assisting, or participating in any man14 ner in an investigation, proceeding, or hearing under this

15 title was a contributing factor in an adverse personnel ac16 tion that was taken or is to be taken against such em17 ployee or applicant.

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

19 if the respondent demonstrates by clear and convincing

20 evidence that it would have taken the same personnel ac21 tion in the absence of such disclosure.’’,

22 (2) by striking subsection (c),

23 (3) in subsection (d)—

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

25 (B) by striking ‘‘(k)’’ and inserting ‘‘(j)’’,
7

•HR 2790 IH

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

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

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

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

5 which discrimination in violation of subsection (a) is al6 leged to have occurred shall be the defendant in a civil

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

8 agency is named as the defendant, the court shall freely

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

10 such department, agency, or unit.

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

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

13 (other than an entity of the Federal Government) a rea14 sonable attorney’s fee (including expert fees) and costs as

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

16 amended from time to time, and the same interest to com17 pensate for delay in payment as in cases involving

18 nonpublic parties.’’,

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

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

21 (5) by inserting after subsection (b) the follow22 ing:

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

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

25 or a class of Federal employees and alleging a claim of
8

•HR 2790 IH

1 discrimination arising under subsection (a) shall name as

2 the respondent, and be filed with, the head of the depart3 ment, agency, or unit in which such discrimination is al4 leged to have occurred, or with the Commission, not later

5 than 180 days after the alleged discrimination occurs.

6 ‘‘(B) If, not later than 180 days after the alleged dis7 crimination occurs, the complaint is filed—

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

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

10 unit as the respondent; or

11 ‘‘(ii) with any other entity of the Federal Gov12 ernment, regardless of the respondent named;

13 the complaint shall be considered to be filed in compliance

14 with subparagraph (A).

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

16 Federal Government other than the department, agency,

17 or unit in which such discrimination is alleged to have oc18 curred, then—

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

20 shall transmit the complaint to the Commission, not

21 later than 15 days after receiving the complaint; and

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

23 the complaint, not later than 10 days after receiving

24 the complaint, to the head of the department, agen25 cy, or unit in which such discrimination is alleged to
9

•HR 2790 IH

1 have occurred (hereinafter in this section referred to

2 as the ‘respondent’).

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

4 receives the complaint from a source other than the Com5 mission, the respondent shall notify the Commission that

6 the respondent has received the complaint and shall in7 form the Commission of the identity of the Federal em8 ployee aggrieved by the discrimination alleged in the com9 plaint.

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

11 the Merit Systems Protection Board receives the com12 plaint from a source other than the Commission, the re13 spondent or the Board shall transmit to the Commission

14 a copy of the complaint.

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

16 respondent receives the complaint and ending on the latest

17 date by which all administrative and judicial proceedings

18 available under this section have been concluded with re19 spect to such claim, the respondent shall collect and pre20 serve documents and information (including the com21 plaint) that are relevant to such claim, including the docu22 ments and information that comply with rules issued by

23 the Commission.

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

25 to conciliate each claim alleged in the complaint during—
10

•HR 2790 IH

1 ‘‘(A) the 30-day period; or

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

3 Federal employee, the 60-day period;

4 beginning on the date the respondent receives the com5 plaint.

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

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

8 the respondent shall—

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

10 such Federal employee; or

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

12 employee that such Federal employee may, before

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

14 date such Federal employee receives such notice, ei15 ther—

16 ‘‘(i) file with the Commission—

17 ‘‘(I) a written request for a deter18 mination of such claim under subsection

19 (f) by an administrative judge of the Com20 mission;

21 ‘‘(II) if such claim alleges discrimina22 tion in the Commission or alleges an action

23 appealable to the Merit Systems Protection

24 Board, a written request electing that a

25 determination of such claim be made under
11

•HR 2790 IH

1 the procedures specified in either subpara2 graph (A) or (B) of section 7702(a)(2) of

3 title 5, United States Code, or a request

4 described in subclause (I); or

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

6 that is subject to section 7121 of title 5,

7 United States Code, but not appealable to

8 the Merit Systems Protection Board, a

9 written request to raise such claim under

10 the administrative and judicial procedures

11 provided in such section 7121 or a request

12 described in subclause (I); or

13 ‘‘(ii) commence a civil action in an appro14 priate district court of the United States for de

15 novo review of such claim.

16 ‘‘(3)(A) Such Federal employee may file a written re17 quest described in paragraph (2)(B)(i), or commence a

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

19 time—

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

21 specified in paragraph (1); and

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

23 specified in paragraph (2).

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

25 under subclause (II) or (III) of paragraph (2)(B)(i) and
12

•HR 2790 IH

1 in accordance with subparagraph (A), the Commission

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

3 request, the complaint to the appropriate agency for deter4 mination.

5 ‘‘(f)(1) If such Federal employee files a written re6 quest under subsection (e)(2)(B)(i)(I) and in accordance

7 with subsection (e)(3)(A) with the Commission for a deter8 mination under this subsection of a claim with respect to

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

10 Commission shall transmit a copy of such request to the

11 respondent and shall appoint an administrative judge of

12 the Commission to determine such claim.

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

14 under subsection (e)(2)(B)(i), the respondent shall trans15 mit—

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

17 a determination under this subsection; or

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

19 such request is for a determination be made under

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

21 title 5, United States Code;

22 a copy of all documents and information collected by the

23 respondent under subsection (d) with respect to such

24 claim.
13

•HR 2790 IH

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

2 there are reasonable grounds to believe that to carry out

3 the purposes of this section it is necessary to stay a per4 sonnel action by the respondent against the aggrieved

5 Federal employee, the administrative judge may request

6 any member of the Commission to issue a stay against

7 such personnel action for 15 calendar days.

8 ‘‘(ii) A stay requested under clause (i) shall take ef9 fect on the earlier of—

10 ‘‘(I) the order of such member; and

11 ‘‘(II) the fourth calendar day (excluding Satur12 day, Sunday, and any legal public holiday) following

13 the date on which such stay is requested unless the

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

15 period beginning on such fourth day.

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

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

18 exceed 30 calendar days, a stay issued under subpara19 graph (A).

20 ‘‘(C) The administrative judge may request the Com21 mission to extend such stay for any period the Commission

22 considers to be appropriate beyond the period in effect

23 under subparagraph (A) or (B).

24 ‘‘(D)(i) Members of the Commission shall have au25 thority to issue and extend a stay for the periods referred
14

•HR 2790 IH

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

2 have authority to extend a stay in accordance with sub3 paragraph (C) for any period.

4 ‘‘(ii) The respondent shall comply with a stay in ef5 fect under this paragraph.

6 ‘‘(4) The administrative judge shall determine wheth7 er the documents and information received under para8 graph (2) comply with subsection (d) and are complete

9 and accurate. If the administrative judge finds that the

10 respondent has failed to produce the documents and infor11 mation necessary to comply with such subsection, the ad12 ministrative judge shall, in the absence of good cause

13 shown by the respondent, impose any of the sanctions

14 specified in paragraph (6)(C) and shall require the re15 spondent—

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

17 information necessary to comply with such sub18 section; and

19 ‘‘(B) to correct any inaccuracy in the docu20 ments and information so received.

21 ‘‘(5)(A) After examining the documents and informa22 tion received under paragraph (4), the administrative

23 judge shall issue an order dismissing—

24 ‘‘(i) any frivolous claim alleged in the com25 plaint; and
15

•HR 2790 IH

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

2 nonfrivolous claim for which relief may be granted

3 under this section.

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

5 subparagraph (A), the administrative judge shall give for6 mal written notice to the aggrieved Federal employee that

7 such Federal employee may, before the expiration of the

8 90-day period beginning on the date such Federal em9 ployee receives such notice—

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

11 for appellate review of such order; or

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

13 district court of the United States for de novo review

14 of such claim or such complaint.

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

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

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

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

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

20 merits of each claim that is not dismissed under such

21 paragraph. The administrative judge shall make a deter22 mination on the merits of any other nonfrivolous claim

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

24 may appeal to the Merit Systems Protection Board, rea-
16

•HR 2790 IH

1 sonably expected to arise from the facts on which the com2 plaint is based.

3 ‘‘(ii) On the request of the aggrieved Federal em4 ployee, the administrative judge shall—

5 ‘‘(I) determine whether the administrative pro6 ceeding with respect to such claim may be main7 tained as a class proceeding; and

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

9 maintained, shall describe those whom the adminis10 trative judge finds to be members of such class.

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

12 discovery by such means as may be available in a civil ac13 tion to the extent deemed appropriate by the administra14 tive judge.

15 ‘‘(C) If the aggrieved Federal employee or the re16 spondent fails without good cause to respond fully and in

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

18 administrative judge for information or the attendance of

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

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

21 the administrative judge shall—

22 ‘‘(i) draw an adverse inference that the re23 quested information, or the testimony of the re24 quested witness, would have reflected unfavorably on

25 the party who so fails to respond;
17

•HR 2790 IH

1 ‘‘(ii) consider the matters to which such infor2 mation or such testimony pertains to be established

3 in favor of the opposing party;

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

5 party who so fails to respond;

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

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

8 706(g); and

9 ‘‘(II) compensatory damages for unlawful

10 intentional discrimination (not an employment

11 practice that is unlawful because of its dispar12 ate impact) prohibited under this section, sub13 ject to the limitations specified in section

14 1977A(b)(3) of the Revised Statutes of the

15 United States;

16 to the aggrieved Federal employee; or

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

18 judge considers to be appropriate.

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

20 judge shall—

21 ‘‘(i) limit attendance to persons who have a di22 rect connection with such claim;

23 ‘‘(ii) bring out pertinent facts and relevant em24 ployment practices and policies, but—
18

•HR 2790 IH

1 ‘‘(I) exclude irrelevant or unduly repeti2 tious information; and

3 ‘‘(II) not apply the Federal Rules of Evi4 dence strictly;

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

6 examine witnesses; and

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

8 oath or affirmation.

9 ‘‘(E) At the request of any party or the administra10 tive judge, a transcript of all or part of such hearing shall

11 be provided in a timely manner and simultaneously to the

12 parties and the Commission. The respondent shall bear

13 the cost of providing such transcript.

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

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

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

17 ‘‘(iii) to rule on offers of proof and receive evi18 dence;

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

20 ‘‘(I) the production of documents or infor21 mation by the entity of the Federal Government

22 in which discrimination is alleged to have oc23 curred; and

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

25 Federal officers or employees of such entity;
19

•HR 2790 IH

1 ‘‘(v) to request the Commission to issue subpoe2 nas to compel the production of documents or infor3 mation by any other entity of the Federal Govern4 ment and the attendance of other witnesses, except

5 that any witness who is not an officer or employee

6 of an entity of the Federal Government may be com7 pelled only to attend any place—

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

9 where such witness resides, is employed, trans10 acts business in person, or is served; or

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

12 fixed by the administrative judge;

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

14 that requests the subpoena, to the same extent that

15 fees and allowances are paid to witnesses under

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

17 amended from time to time;

18 ‘‘(vi) to exclude witnesses whose testimony

19 would be unduly repetitious;

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

21 contumacious conduct, or for misbehavior, that ob22 structs such hearing; and

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

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

25 706(g); and
20

•HR 2790 IH

1 ‘‘(II) compensatory damages for unlawful

2 intentional discrimination (not an employment

3 practice that is unlawful because of its dispar4 ate impact) prohibited under this section, sub5 ject to the limitations specified in section

6 1977A(b)(3) of the Revised Statutes of the

7 United States.

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

9 shall have authority to award—

10 ‘‘(i) a reasonable attorney’s fee (including ex11 pert fees) and costs as a court has authority to

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

13 to time; and

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

15 in payment as in cases involving nonpublic parties.

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

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

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

19 subpoena issued under subparagraph (F) or (H), the Unit20 ed States district court for the judicial district in which

21 the person to whom the subpoena is addressed resides or

22 is served may issue an order requiring such person to ap23 pear at any designated place to testify or to produce docu24 mentary or other evidence.
21

•HR 2790 IH

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

2 administrative judge shall issue a written order making

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

4 granting or denying relief, not later than—

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

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

7 or

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

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

10 employees;

11 except that these time periods shall not begin running

12 until 30 days after the administrative judge is assigned

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

14 that such 30-day period is needed to secure additional doc15 uments or information from the respondent to have a com16 plete administrative record.

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

18 not later than 30 days after the applicable period specified

19 in subparagraph (A) if the administrative judge certifies

20 in writing, before the expiration of such applicable pe21 riod—

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

23 make such determination; and

24 ‘‘(ii) the particular and unusual circumstances

25 that prevent the administrative judge from comply-
22

•HR 2790 IH

1 ing with the applicable period specified in subpara2 graph (A).

3 ‘‘(C) The administrative judge may apply to the Com4 mission to extend any period applicable under subpara5 graph (A) or (B) if manifest injustice would occur in the

6 absence of such an extension.

7 ‘‘(D) The Commission—

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

9 ‘‘(ii) shall terminate such extension;

10 if the aggrieved Federal employee shows that such exten11 sion would prejudice a claim of, or otherwise harm, such

12 Federal employee.

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

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

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

16 beginning on the date such party receives such order—

17 ‘‘(i) the aggrieved Federal employee may com18 mence a civil action in an appropriate district court

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

20 with respect to which such order is issued; and

21 ‘‘(ii) unless and until a civil action is com22 menced in such 90-day period under clause (i) with

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

24 Commission a written request for appellate review of
23

•HR 2790 IH

1 the determination made, and relief granted or de2 nied, in such order with respect to such claim.

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

4 civil action at any time—

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

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

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

8 beginning on the date such Federal employee re9 ceives an order described in subparagraph (A).

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

11 and if such employee neither—

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

13 subparagraph (E)(i); nor

14 ‘‘(ii) requests appellate review in accordance

15 with subparagraph (E)(ii);

16 with respect to a particular claim, then the determination

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

18 such particular claim shall be enforceable immediately.

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

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

21 with the Commission for appellate review of the deter22 mination made, and relief granted or denied, with respect

23 to a claim in such order, then the Commission shall imme24 diately transmit a copy of such request to the other parties
24

•HR 2790 IH

1 involved and to the administrative judge who issued such

2 order.

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

4 such request, the administrative judge shall transmit to

5 the Commission the record of the proceeding on which

6 such order is based, including all documents and informa7 tion collected by the respondent under subsection (d).

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

9 respect to such determination, the Commission shall issue

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

11 or modifying the applicable provisions of the order of the

12 administrative judge not later than—

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

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

15 Commission certifies in writing, before the expiration

16 of such 150-day period—

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

18 to review such claim; and

19 ‘‘(II) the particular and unusual cir20 cumstances that prevent the Commission from

21 complying with clause (i).

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

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

24 judge with respect to such claim if such determination and

25 such relief are supported by substantial evidence in the
25

•HR 2790 IH

1 record taken as a whole and are otherwise in accordance

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

3 shall be conclusive unless the Commission determines that

4 they are clearly erroneous.

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

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

7 written notice to the aggrieved Federal employee that, be8 fore the expiration of the 90-day period beginning on the

9 date such Federal employee receives such order, such Fed10 eral employee may commence a civil action in an appro11 priate district court of the United States for de novo re12 view of a claim with respect to which such order is issued.

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

14 civil action at any time—

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

16 specified in subparagraph (A); and

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

18 specified in subparagraph (C).

19 ‘‘(h)(1) In addition to the periods authorized by sub20 sections (f)(7)(E) and (g)(3)(D)—

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

22 after an aggrieved Federal employee timely requests

23 an administrative determination under subsection (f)

24 with respect to a claim and ending on the date the
26

•HR 2790 IH

1 administrative judge issues an order under such sub2 section with respect to such claim; and

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

4 after such Federal employee timely requests appel5 late review under subsection (g) of such determina6 tion with respect to such claim and ending on the

7 date the Commission issues an order under such

8 subsection with respect to such claim;

9 such Federal employee may commence a civil action in an

10 appropriate district court of the United States for de novo

11 review of such claim.

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

13 otherwise in accordance with this section to determine the

14 merits of a claim arising under this section, the jurisdic15 tion of the administrative judge or the Commission (as

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

17 shall terminate.

18 ‘‘(i) A Federal employee who prevails on a claim aris19 ing under this section, or the Commission, may bring a

20 civil action in an appropriate district court of the United

21 States to enforce—

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

23 applicable to such claim;
27

•HR 2790 IH

1 ‘‘(2) the provisions of an order issued by an ad2 ministrative judge under subsection (f)(7)(A) appli3 cable to such claim if—

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

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

6 Commission; and

7 ‘‘(B) a civil action is not commenced time8 ly under subsection (g)(3)(D) for de novo re9 view;

10 of such claim; or

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

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

13 such claim if a civil action is not commenced timely

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

15 such claim.

16 ‘‘(j) Any amount awarded under this section (includ17 ing fees, costs, and interest awarded under subsection

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

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

20 by the entity of the Federal Government that violated such

21 subsection from any funds made available to such entity

22 by appropriation or otherwise.

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

24 which a claim of discrimination is alleged in a complaint

25 filed in an administrative proceeding or a civil action
28

•HR 2790 IH

1 under this section shall grant the aggrieved Federal em2 ployee paid administrative leave for time reasonably ex3 pended to prepare for, and participate in, such proceeding

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

5 regulations issued by the Commission, except that such

6 leave shall include reasonable time for—

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

8 allegation;

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

10 ‘‘(3) attendance at depositions;

11 ‘‘(4) meetings with counsel; and

12 ‘‘(5) other ordinary and legitimate undertakings

13 in such proceeding or action, that require the pres14 ence of such Federal employee.

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

16 by an administrative judge or the Commission, the Com17 mission may make a written determination that—

18 ‘‘(A) any officer or employee of the agency, de19 partment, or unit charged with complying with such

20 order, or

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

22 States determined to be responsible for the failure of

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

24 order,
29

•HR 2790 IH

1 who is not an officer or employee appointed by the Presi2 dent by and with the advice and consent of the Senate,

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

4 officer or employee for the period during which such order

5 has not been complied with. The Commission shall certify

6 to the Comptroller General of the United States that a

7 determination under this paragraph has been made, and

8 no payment shall be made out of the Treasury of the Unit9 ed States for any service specified in such determination.

10 ‘‘(2) In enforcing compliance with such order with re11 spect to any officer or employee described in subparagraph

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

13 appointed by the President by and with the advice and

14 consent of the Senate, the Commission may notify the

15 President that such officer or employee has failed to obey

16 such order.

17 ‘‘(m) If with respect to the merits of a claim of inten18 tional discrimination (other than an employment practice

19 that is unlawful because of its disparate impact) prohib20 ited by this section, a Federal employee prevails in a pro21 ceeding under subsection (f) or a civil action commenced

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

23 shall identify each individual believed to have engaged in

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

25 than 15 days after issuing an order finding liability under
30

•HR 2790 IH

1 this section, the administrative judge or the district court

2 involved shall notify the Office of Special Counsel of the

3 identity of such individual and the fact that such individ4 ual is believed to have engaged in conduct that is the basis

5 of liability found on such claim in such proceeding or ac6 tion.

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

8 effective date of the Federal Employee Fairness Act of

9 1993, shall apply with respect to employment in the Li10 brary of Congress.’’.

11 SEC. 113. AMENDMENTS TO THE AGE DISCRIMINATION IN

12 EMPLOYMENT ACT AND THE REHABILITA13 TION ACT OF 1973.

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

15 Age Discrimination in Employment Act of 1967 (29

16 U.S.C. 633a) is amended—

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

18 (B) by inserting after subsection (b) the follow19 ing:

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

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

22 of this section may file a complaint with the Commission

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

24 1964.
31

•HR 2790 IH

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

2 effect immediately before the effective date of the Federal

3 Employee Fairness Act of 1993, shall apply with respect

4 to employment in the Library of Congress.

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

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

7 alleged in a complaint filed under paragraph (1) in the

8 same manner as such section applies to a claim arising

9 under section 717 of such Act.

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

11 this section does not file a complaint under subsection

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

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

14 Commission a notice of intent to commence such ac15 tion; and

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

17 violation of this section occurs;

18 in an appropriate district court of the United States for

19 de novo review of such violation.

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

21 shall—

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

23 notice as prospective defendants in such action; and

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

25 elimination of any unlawful practice.
32

•HR 2790 IH

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

2 (42 U.S.C. 2000e–16(o)) shall apply to civil actions com3 menced under this subsection in the same manner as such

4 section applies to civil actions commenced under section

5 717 of the Civil Rights Act of 1964.’’.

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

7 U.S.C. 794a) is amended—

8 (A) in subsection (a)(1)—

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

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

11 ‘‘706(j)’’,

12 (iii) by striking ‘‘through (k)’’ and insert13 ing ‘‘through (j)’’, and

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

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

16 immediately before the effective date of the Federal Em17 ployee Fairness Act of 1993, shall apply with respect to

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

19 (B) in subsection (b) by striking ‘‘In’’ and in20 serting ‘‘Except as provided in subsection (a)(1),

21 in’’.

22 (b) OPPORTUNITY TO COMMENCE CIVIL ACTION.—

23 If a complaint filed under section 15 of the Age Discrimi24 nation in Employment Act of 1967 (29 U.S.C. 633a), or

25 section 501 of the Rehabilitation Act of 1973 (29 U.S.C.
33

•HR 2790 IH

1 791)), with the Equal Employment Opportunity Commis2 sion is pending in the period beginning on the date of the

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

4 the individual who filed such complaint may commence a

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

6 1995.

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

8 STATES CODE.

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

10 5, United States Code, is amended—

11 (1) in subsection (a)(1) by inserting ‘‘adminis12 trative’’ after ‘‘exclusive’’, and

13 (2) in subsection (d)—

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

15 (B) in the first and second sentences by

16 striking ‘‘An’’ and inserting ‘‘Except as pro17 vided in paragraph (2), an’’,

18 (C) in the last sentence by striking ‘‘Selec19 tion’’ and all that follows through ‘‘any other’’,

20 and inserting the following:

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

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

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

24 a’’, and
34

•HR 2790 IH

1 (D) by inserting after the second sentence

2 the following:

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

4 a law administered by the Equal Employment Opportunity

5 Commission, may be raised under the negotiated grievance

6 procedure in accordance with this section only if an em7 ployee elects under section 717(e)(2)(B)(i)(III) of the Civil

8 Rights Act of 1964 to proceed under this section.’’.

9 (b) ACTIONS INVOLVING DISCRIMINATION.—Section

10 7702 of title 5, United States Code, is amended to read

11 as follows:

12 ‘‘§ 7702. Actions involving discrimination

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

14 in the case of any employee or applicant for employment

15 who—

16 ‘‘(A) is affected by—

17 ‘‘(i) an action which the employee or appli18 cant may appeal to the Merit Systems Protec19 tion Board, or

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

21 (i)—

22 ‘‘(I) on the part the Equal Employ23 ment Opportunity Commission, and

24 ‘‘(II) with respect to which the em25 ployee or applicant makes an election
35

•HR 2790 IH

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

2 Civil Rights Act of 1964, and

3 ‘‘(B) alleges that a basis for the action was dis4 crimination prohibited by—

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

6 1964 (42 U.S.C. 2000a–16),

7 ‘‘(ii) section 6(d) of the Fair Labor Stand8 ards Act of 1938 (29 U.S.C. 206(d)),

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

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

11 ‘‘(iv) sections 12 and 13 of the Age Dis12 crimination in Employment Act of 1967 (29

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

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

15 prescribed under any provision of law described

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

17 the employee or applicant may raise the action as provided

18 in paragraph (2).

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

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

21 Employment Opportunity Commission in accordance with

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

23 a request under section 717(e)(2)(B)(i) selecting the pro24 cedures specified in one of the following subparagraphs:
36

•HR 2790 IH

1 ‘‘(A) The administrative and judicial procedures

2 provided under sections 7701 and 7703.

3 ‘‘(B) The administrative and judicial procedures

4 provided under section 7121.

5 ‘‘(C) The administrative and judicial procedures

6 provided under section 717 of the Civil Rights Act

7 of 1964.

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

9 Employment Opportunity Commission) that carries out

10 such procedures shall apply the substantive law that is ap11 plied by the agency that administers the particular law

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

13 alleged to be the basis of the action referred to in sub14 section (a)(1)(A).

15 ‘‘(b) If—

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

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

18 ‘‘(2) the Equal Employment Opportunity Com19 mission dismisses under section 717(f)(5)(A) of the

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

21 the action raised by the employee,

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

23 the action under the procedures specified in subparagraph

24 (A) or (B) of subsection (a)(2), except that no allegation
37

•HR 2790 IH

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

2 under this subsection.

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

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

5 Rights Act of 1964 to raise an action under the proce6 dures specified in subsection (a)(2)(A) there is no judi7 cially reviewable action, an employee shall be entitled to

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

9 a civil action in an appropriate district court of the United

10 States for de novo review of the action raised under sub11 section (a).

12 ‘‘(d) Nothing in this section shall be construed to af13 fect the right to trial de novo under any provision of law

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

15 action.’’.

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

17 5, United States Code, is amended by adding at the end

18 the following:

19 ‘‘(g)(1) Whenever the Office of Special Counsel re20 ceives any notification, in accordance with section 717(m)

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

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

23 1964, section 15(a) of the Age Discrimination in Employ24 ment Act of 1967, or section 501 of the Rehabilitation

25 Act of 1973, the Special Counsel shall investigate the mat-
38

•HR 2790 IH

1 ter to the extent necessary to determine whether there are

2 reasonable grounds to believe that a prohibited personnel

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

4 if so, shall seek the appropriate disciplinary action under

5 section 1215.

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

7 made not later than 180 days after the appropriate date

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

9 in such paragraph.

10 ‘‘(3)(A) With respect to a claim—

11 ‘‘(i) to which an order issued by an administra12 tive judge of the Equal Employment Opportunity

13 Commission applies, and

14 ‘‘(ii) with respect to which the aggrieved em15 ployee neither—

16 ‘‘(I) commences a civil action in accord17 ance with section 717(f)(7)(E)(i) of the Civil

18 Rights Act of 1964, nor

19 ‘‘(II) requests appellate review in accord20 ance with section 717(f)(7)(E)(ii) of the Civil

21 Rights Act of 1964,

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 administrative judge.

25 ‘‘(B) With respect to a claim—
39

•HR 2790 IH

1 ‘‘(i) to which an order issued by the Equal Em2 ployment Opportunity Commission applies, and

3 ‘‘(ii) with respect to which the aggrieved em4 ployee does not commence a civil action in accord5 ance with section 717(g)(3)(D),

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

7 Special Counsel receives notification (referred to in para8 graph (1)) from the Commission.

9 ‘‘(C) With respect to a claim to which a final judg10 ment issued by a court of the United States applies, the

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

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

13 from such court.

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

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

16 the merits;

17 ‘‘(B) the term ‘judgment’ means a judgment is18 sued on the merits; and

19 ‘‘(C) the term ‘final judgment’ means a judg20 ment that is either—

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

22 has authority to review such judgment; or

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

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

25 amended—
40

•HR 2790 IH

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

2 and

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

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

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

6 extent to which such information relates to any matter re7 ferred to in section 1214(g).’’.

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

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

10 following:

11 ‘‘§ 2306. Federal personnel records

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

13 ‘‘(1) the term ‘personnel action’ has the mean14 ing given such term in section 2302(a)(2)(A);

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

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

17 ‘‘(3) the term ‘employee’ means—

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

19 2105; and

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

21 Postal Service or the Postal Rate Commission;

22 but does not include any employee with respect to

23 whom section 117, or title III (excluding section

24 320), of the Civil Rights Act of 1991 applies.
41

•HR 2790 IH

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

2 with respect to an employee shall be maintained by the

3 employing authority for at least the greater of—

4 ‘‘(1) 270 days after the effective date of the

5 personnel action to which they relate; or

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

7 under applicable provisions of law, rule, or regula8 tion, if any.

9 ‘‘(c) The Office of Personnel Management shall pre10 scribe regulations for the implementation of this section

11 by an Executive agency.’’.

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

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

14 following:

‘‘2306. Federal personnel records.’’.

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

16 5, United States Code, is amended by striking ‘‘30 days’’

17 and inserting ‘‘90 days’’.

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

19 title 5, United States Code, is amended—

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

21 and

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

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

24 required, in the case of an appeal from an action, if—
42

•HR 2790 IH

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

2 action appealable to the Board;

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

4 respect to whom notification has been received by

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

6 of the Civil Rights Act of 1964; and

7 ‘‘(iii) 1 of the grounds for the action being ap8 pealed is discrimination of a type described in sec9 tion 2302(b)(1).’’.

10 SEC. 115. TECHNICAL AMENDMENTS.

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

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

13 Commission’’ each place it appears and inserting ‘‘Com14 mission’’.

15 SEC. 116. ISSUANCE OF PROCEDURAL GUIDELINES AND NO16 TICE RULES.

17 After providing notice in accordance with section

18 553(b) of title 5, United States Code, and not later than

19 1 year after the date of the enactment of this Act, the

20 Equal Employment Opportunity Commission shall issue—

21 (1) rules to assist entities of the Federal Gov22 ernment to comply with section 717(d) of the Civil

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

24 Act, and

25 (2) rules establishing—
43

•HR 2790 IH

1 (A) a uniform written official notice to be

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

3 added by section 112 of this Act, and

4 (B) detailed requirements applicable to col5 lecting and preserving documents and informa6 tion under section 717(d), as added by section

7 112 of this Act.

8 SEC. 117. RULES OF CONSTRUCTION.

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

10 Civil Rights Act of 1964) to any provision of title VII of

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

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

13 by this Act.

14 SEC. 118. EFFECTIVE DATE; APPLICATION OF AMEND15 MENTS.

16 (a) EFFECTIVE DATE.—Except as provided in sub17 section (b), this Act and the amendments made by this

18 Act shall take effect on January 1, 1995.

19 (b) APPLICATION OF AMENDMENTS.—Except as pro20 vided in section 117, the amendments made by this Act

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

22 respect to complaints filed under section 717 of the Civil

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

24 effective date of this Act.
44

•HR 2790 IH

1 Subtitle C—Congressional

2 Employees Fairness Act

3 SEC. 121. SHORT TITLE.

4 This subtitle may be cited as the ‘‘Congressional Em5 ployees Fairness Act’’.

6 SEC. 122. APPLICATION OF FEDERAL LAWS.

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

8 after the date final regulations take effect under section

9 124(a)(2), the following laws shall apply to the Congress:

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

11 U.S.C. 201 et seq.).

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

13 (42 U.S.C. 2000e et seq.).

14 (3) Sections 102 through 104 of the Americans

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

16 12114).

17 (4) Section 15 of the Age Discrimination in

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

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

20 (29 U.S.C. 2611 et seq.).

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

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

23 to—

24 (1) the terms and conditions of employment (in25 cluding hiring, promotion or demotion, salary and
45

•HR 2790 IH

1 wages, overtime compensation, benefits, work assign2 ments or reassignments, and termination) of employ3 ees,

4 (2) protection from discrimination in personnel

5 actions,

6 (3) the health and safety of employees,

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

8 or

9 (5) other areas deemed appropriate by the

10 Independent Office of Compliance,

11 apply to the House of Representatives and the Senate

12 (hereinafter in this Act referred to jointly as the ‘‘Con13 gress’’) in accordance with approval of a recommendation

14 made under section 124(b).

15 SEC. 123. OFFICE OF COMPLIANCE.

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

17 legislative branch for the Congress an Independent Office

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

19 ‘‘Office’’).

20 (b) COMPOSITION.—

21 (1) IN GENERAL.—The Office shall be com22 posed of a Board of Directors and staff. The Board

23 of Directors shall consist of 15 individuals appointed

24 jointly by the Speaker of the House of Representa25 tives, the Majority Leader of the Senate, and the
46

•HR 2790 IH

1 Minority Leaders of the House of Representatives

2 and the Senate after consultation with individuals

3 who represent the interests of congressional employ4 ees. Appointments to the Board of Directors shall be

5 completed not later than 120 days after the date of

6 the enactment of this Act.

7 (2) QUALIFICATIONS.—

8 (A) MEMBERS WITH GENERAL AUTHOR9 ITY.—The members of the Board of Directors

10 who shall have the authority to carry out the

11 functions of the Office under this Act shall be

12 9 individuals appointed under paragraph (1)

13 from nominations submitted by organizations

14 the membership of which are primarily com15 posed of individuals experienced in adjudicating

16 or arbitrating personnel matters. Individuals

17 nominated by such organizations shall be indi18 viduals with training or expertise in—

19 (i) the application of the laws referred

20 to in section 122 to employment, and

21 (ii) employment in the Congress.

22 (B) MEMBERS WITH LIMITED AUTHOR23 ITY.—The members of the Board of Directors

24 who shall have the authority to issue the regu25 lations, conduct the study, and take the con-
47

•HR 2790 IH

1 tinuing action referred to in subsections (a),

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

3 appointed under paragraph (1) of which 2 shall

4 be Members of the House of Representatives, 2

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

6 House of Representatives, and 1 shall be an

7 employee of the Senate.

8 (C) SPECIFIC QUALIFICATIONS.—

9 (i) LOBBYING.—No individual who en10 gages in, or is otherwise employed in, lob11 bying of the Congress shall be considered

12 eligible for appointment to, or service on,

13 the Board of Directors.

14 (ii) OFFICE.—No member appointed

15 under subparagraph (A) may hold the po16 sition of Member of the House of Rep17 resentatives, Senator, or employee of the

18 House of Representatives or the Senate.

19 (3) POLITICAL AFFILIATION.—Not more than

20 one Member of the House of Representatives who is

21 a member of the Board of Directors and not more

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

23 Directors may be of the same political party.

24 (4) HOLDING OFFICE.—If during a term of of25 fice a member of the Board of Directors no longer
48

•HR 2790 IH

1 holds the position qualifying such member or en2 gages in an activity described in paragraph

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

4 a successor shall be selected in accordance with

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

6 the Board of Directors expires and such member is

7 a member of a hearing board hearing a complaint

8 under section 128, such member may continue in of9 fice until the decision or order of the hearing board

10 becomes final.

11 (4) VACANCIES.—A vacancy in the Board of

12 Directors shall be filled in the manner in which the

13 original appointment was made.

14 (c) AUTHORITY.—

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

16 Board of Directors appointed under subsection

17 (b)(1) shall have the authority to carry out the func18 tions described in subsections (a) and (b) of section

19 124.

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

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

22 have the authority to carry out the functions de23 scribed in sections 124 through 129A.

24 (d) TERM OF OFFICE.—
49

•HR 2790 IH

1 (1) IN GENERAL.—Except as provided in para2 graph (2), membership on the Board of Directors

3 shall be for 5 years.

4 (2) FIRST APPOINTMENTS.—Of the members

5 first appointed to the Board of Directors—

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

7 year,

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

9 years, and

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

11 years,

12 as designated at the time of appointment by the per13 sons specified in subsection (b)(1).

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

15 of Directors may not be reappointed.

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

17 may only be removed for cause, including malfeasance in

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

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

20 (f) CHAIRMAN.—The Chairman of the Board of Di21 rectors shall be appointed from the members of the Board

22 of Directors by the members of the Board.

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

24 shall serve without pay except that members of the Board

25 of Directors who serve as hearing officers under section
50

•HR 2790 IH

1 128 shall receive for each day engaged in the performance

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

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

4 basic pay in effect for grade GS-15 of the General Sched5 ule under subchapter III of chapter 53 of title 5, United

6 States Code.

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

8 and fix the compensation of such staff as are necessary

9 to carry out the Board of Director’s functions. Appoint10 ments to the staff shall be made on the basis of experience

11 in labor law and not on political affiliation. Current or

12 former employees of the Congress are not eligible for ap13 pointment to the staff.

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

15 the prior consent of the Government department or agency

16 concerned, use on a reimbursable or nonreimbursable

17 basis the services of any such department or agency, in18 cluding the services of members or personnel of the Gen19 eral Accounting Office Personnel Appeals Board.

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

21 the Office, the Board of Directors may procure the tem22 porary (not to exceed 1 year) or intermittent services of

23 individual consultants, or organizations thereof.
51

•HR 2790 IH

1 SEC. 124. BOARD FUNCTIONS.

2 (a) REGULATIONS FOR THE APPLICATION OF LAWS

3 APPLICABLE TO CONGRESS.—The Board of Directors

4 shall issue regulations respecting the remedies available

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

6 covered under the laws referred to in section 122(a). Reg7 ulations respecting such laws shall be issued within 120

8 days of the date of the first appointment of members of

9 the Board of Directors.

10 (b) RECOMMENDATIONS FOR APPLICATION OF

11 LAWS.—

12 (1) STUDY.—The Board of Directors shall con13 duct a study of the application to Congress of the

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

15 by section 129F. The Board of Directors shall com16 plete such study and report the results to Congress

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

18 appointment of the Board of Directors. Act.

19 (2) RECOMMENDATIONS.—

20 (A) IN GENERAL.—Not later than 120

21 days after the date of the completion of the

22 study under subsection (a), the Board of Direc23 tors shall, in accordance with section 553 of

24 title 5, United States Code, make recommenda25 tions to the Congress which specify which of the
52

•HR 2790 IH

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

2 to Congress. Such recommendations—

3 (i) shall take into account the costs

4 associated with the application of such

5 laws to the Congress,

6 (ii) shall be consistent with the provi7 sion of law made applicable to Congress,

8 except as otherwise specifically provided in

9 sections 125 through 129D of this Act,

10 and

11 (iii) may specify specific dates for the

12 application of specific laws and may specify

13 specific means for the application of such

14 laws.

15 (B) APPROVAL.—When a recommendation

16 made under subparagraph (A) is received by

17 the Congress, it shall be introduced as a joint

18 resolution in the House of Representatives and

19 the Senate. Such a joint resolution shall be a

20 joint resolution which states after the resolving

21 clause that the Congress approves the rec22 ommendation and includes an appropriate iden23 tification of such recommendation. When such a

24 joint resolution is introduced in the House of

25 Representatives it shall be referred to the ap-
53

•HR 2790 IH

1 propriate committee and when it is introduced

2 in the Senate it shall be referred to the appro3 priate committee. Subsections (c), (d), (e), and

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

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

6 resolution, except that final action on such rec7 ommendation shall be completed within 45 days

8 of the date of the submission to Congress of the

9 joint resolution.

10 (3) REGULATIONS FOR ACTIONS ON REC11 OMMENDATIONS.—The Board of Directors shall

12 issue regulations respecting the remedies available

13 under sections 125 through 129A of this Act to indi14 viduals covered under the laws made applicable to

15 the Congress by approval of a recommendation made

16 under paragraph (2). Regulations respecting such

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

18 the enactment of a law in response to a rec19 ommendation made under paragraph (2).

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

21 Board of Directors shall study the application to the Con22 gress of laws referred to in section 122(b) which are en23 acted after the date of the enactment of this Act and may

24 issue recommendations and regulations with respect to

25 such laws in accordance with subsection (b).
54

•HR 2790 IH

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

2 shall adopt rules governing the procedures of the Office,

3 including the procedures under sections 125 through 128,

4 which shall be submitted for publication in the Congres5 sional Record. The rules may be amended in the same

6 manner. The Board of Directors may consult with the

7 Chairman of the Administrative Conference of the United

8 States on the adoption of such rules.

9 (e) DUTIES.—The Office shall—

10 (1) carry out a program of education for Mem11 bers of Congress and other employing authorities of

12 the Congress respecting the laws made applicable to

13 them and a program to inform individuals of their

14 rights under laws applicable to Congress and under

15 sections 125 through 129A,

16 (2) in carrying out the program under para17 graph (1), distribute the telephone number and ad18 dress of the Office, procedures for action under sec19 tions 125 through 129A, and any other information

20 the Board of Directors deems appropriate for dis21 tribution, distribute such information to Members of

22 Congress and other employing authorities in a man23 ner suitable for posting, provide such information to

24 new Congressional employees, distribute such infor25 mation to the residences of Congressional employees,
55

•HR 2790 IH

1 and conduct seminars and other activities designed

2 to educate employers and employees in such infor3 mation,

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

5 the Office by Congressional employees, including the

6 number and type of contacts made with the Office,

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

8 employees who initiated proceedings with the Office

9 under sections 5 through 10 and the result of such

10 proceedings, on the number of employees who filed

11 a complaint under section 8, the basis for the com12 plaint, and the action taken on the complaint, and

13 (4) within 180 days of the initial appointment

14 of the members of the Board of Directors and in

15 conjunction with the Clerk of the House of Rep16 resentatives and the Secretary of the Senate, develop

17 a system for the collection of demographic data re18 specting the composition of the employees of the

19 Congress, including race, sex, and wages, and a sys20 tem for the collection of information on employment

21 practices, including family leave and flexible work

22 hours, in Congressional offices.

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

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

25 thereafter, the Board of Directors shall submit to Con-
56

•HR 2790 IH

1 gress a report on the information collected under such sys2 tem. Each report after the first report shall contain a com3 parison and evaluation of data contained in the previous

4 report.

5 (g) IDENTIFICATION OF DISCRIMINATORY PRAC6 TICES.—From the information collected under subsection

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

8 wage setting practices in the Congress and promptly re9 port to the Congress such identification together with rec10 ommendations for corrective action.

11 SEC. 125. PROCEDURE FOR CONSIDERATION OF ALLEGED

12 VIOLATIONS.

13 The procedure for consideration of alleged violations

14 of laws made applicable to Congress under the regulation

15 promulgated under section 4(a) consists of 4 steps as fol16 lows:

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

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

19 7.

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

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

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

23 decision, as set forth in section 9.
57

•HR 2790 IH

1 SEC. 126. STEP I: COUNSELING.

2 (a) IN GENERAL.—A Congressional employee alleg3 ing a violation of a law made applicable to Congress under

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

5 The Office shall provide the employee with all relevant in6 formation with respect to the rights of the employee, in7 cluding the procedures (including deadlines) for claims

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

9 not later than 180 days after the alleged violation forming

10 the basis of the request for counseling occurred.

11 (b) PERIOD OF COUNSELING.—The period for coun12 seling shall be 30 days unless the employee and the Office

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

14 date the request for counseling is received.

15 (c) EMPLOYEES OF THE ARCHITECT OF THE CAP16 ITOL AND CAPITOL POLICE.—In the case of an employee

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

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

19 employee to the Architect of the Capitol or the Capitol

20 Police Board for resolution of the employee’s complaint

21 through the internal grievance procedures of the Architect

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

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

24 available for counseling or mediation under this Act.
58

•HR 2790 IH

1 SEC. 127. STEP II: MEDIATION.

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

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

4 who alleged a violation of a law made applicable to Con5 gress under section 4 may file a request for mediation with

6 the Office. Mediation—

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

8 employing office, and individuals who are rec9 ommended to the Director by the Federal Mediation

10 and Conciliation Service, and

11 (2) shall be a process involving meetings with

12 the parties separately or jointly for the purpose of

13 resolving the dispute between the employee and the

14 employing office.

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

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

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

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

19 employee and the head of the employing office when the

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

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

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

23 set the terms, conditions or privileges of the Congressional

24 employment of an employee.
59

•HR 2790 IH

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

2 (a) FORMAL COMPLAINT AND REQUEST FOR HEAR3 ING.—Not later than 30 days after receipt by the Congres4 sional employee of notice from the Office of the end of

5 the mediation period under section 7, the Congressional

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

7 complaint may be filed unless the employee has made a

8 timely request for counseling and has completed the proce9 dures set forth in sections 6 and 7.

10 (b) HEARING OFFICERS.—A board of 3 hearing offi11 cers (hereinafter in this Act referred to as a ‘‘hearing

12 board’’), who are chosen by lot from the Board of Direc13 tors (one of whom shall be designated by the Board of

14 Directors as the presiding hearing officer) shall be as15 signed to consider each complaint filed under subsection

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

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

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

19 any claim that it finds to be frivolous.

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

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

22 board,

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

24 complaint under subsection (a), except that the Of25 fice may, for good cause, extend up to an additional

26 60 days the time for conducting a hearing, and
60

•HR 2790 IH

1 (3) except as specifically provided in this Act

2 and to the greatest extent practicable, in accordance

3 with the principles and procedures set forth in sec4 tions 554 through 557 of title 5, United States

5 Code.

6 (e) DISCOVERY.—Reasonable prehearing discovery

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

8 (f) SUBPOENA POWER.—

9 (1) IN GENERAL.—A hearing board may au10 thorize subpoenas, which shall be issued by the pre11 siding hearing officer on behalf of the hearing board,

12 for the attendance of witnesses at proceedings of the

13 hearing board and for the production of correspond14 ence, books, papers, documents, and other records.

15 The attendance of witnesses and the production of

16 evidence may be required from any place within the

17 United States.

18 (2) FAILURE TO OBEY A SUBPOENA.—If a per19 son refuses to obey a subpoena issued under para20 graph (1), the hearing board may apply to a United

21 States district court for an order requiring that per22 son to appear before the hearing board to give testi23 mony, produce evidence, or both, relating to the

24 matter under investigation. The application may be

25 made within the judicial district where the hearing
61

•HR 2790 IH

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

2 or transacts business. Any failure to obey the order

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

4 contempt.

5 (3) SERVICE OF SUBPOENAS.—The subpoenas

6 of the hearing board shall be served in the manner

7 provided for subpoenas issued by a United States

8 district court under the Federal Rules of Civil Pro9 cedure for the United States district courts.

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

11 court to which application is be made under para12 graph (2) may be served in the judicial district in

13 which the person required to be served resides or

14 may be found.

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

16 agency of the United States for the purpose of

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

18 to immunity of witnesses).

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

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

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

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

23 the hearing board shall be transmitted by the Office to

24 the employee and the employing office. The decision shall

25 state the issues raised by the complaint, describe the evi-
62

•HR 2790 IH

1 dence in the record, and contain a determination as to

2 whether a violation of a law made applicable to Congress

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

4 board shall contain a written statement of the reasons for

5 the Board’s decision.

6 (h) REMEDY ORDER.—If the hearing board deter7 mines that a violation of a law made applicable to Con8 gress under section 2(a) or 4(b) has occurred, it shall

9 order such remedies as would be appropriate under the

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

11 hearing board shall have no authority to award punitive

12 damages. The entry of an order under this subsection shall

13 constitute a final decision for purposes of review under

14 section 9.

15 SEC. 129. JUDICIAL REVIEW.

16 (a) IN GENERAL.—Any Congressional employee ag17 grieved by a dismissal under section 8(c), a final decision

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

19 Member of the House of Representatives or Senate ag20 grieved by a final decision under section 8(g) or who would

21 be subject to an order issued under section 8(h), may peti22 tion for review by the United States Court of Appeals for

23 the Federal Circuit.
63

•HR 2790 IH

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

2 United States Code, shall apply to a review under sub3 section (a) except that—

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

5 United States Code, service of the petition shall be

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

7 may be, rather than on the Attorney General,

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

9 United States Code, on the authority of the Attorney

10 General, shall not apply,

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

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

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

14 section 8(h),

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

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

17 States Code, and

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

19 proceeding under subsection (a).

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

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

22 relevant questions of law and interpret constitutional and

23 statutory provisions. The court shall set aside a final deci24 sion under section 8(h) or order under section 8(g) if it

25 is determined that the decision or order was—
64

•HR 2790 IH

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

2 or otherwise not consistent with law;

3 (2) not made consistent with required proce4 dures; or

5 (3) unsupported by substantial evidence.

6 In making the foregoing determinations, the court shall

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

8 party, and due account shall be taken of the rule of preju9 dicial error. The record on review shall include the record

10 before the hearing board, the decision of the hearing

11 board, and the order of the hearing board.

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

13 (a), the court may allow the prevailing party a reasonable

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

15 the costs.

16 SEC. 129A. OTHER REVIEW.

17 (a) PERSONNEL APPEALS BOARD.—If the judicial re18 view of a dismissal notice, decision, or order under section

19 8(c), 8(g), or 8(h) under section 9 is held to be unconstitu20 tional, the review of such notice, decision, or order shall

21 be conducted by the Personnel Appeals Board of the Gen22 eral Accounting Office (hereinafter in this section referred

23 to as the ‘‘Board’’).

24 (b) PETITION FOR REVIEW.—Any Congressional em25 ployee aggrieved by a dismissal under section 8(c), a final
65

•HR 2790 IH

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

2 8(h), or any Member of the House of Representatives or

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

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

5 8(h), may petition for review by the Board.

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

7 to decision and when presented, the Board shall decide

8 all relevant questions of law and interpret constitutional

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

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

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

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

13 or otherwise not in accordance with law,

14 (2) made without observance of procedure re15 quired by law, or

16 (3) unsupported by substantial evidence.

17 In making the foregoing determinations, the Board 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) ATTORNEY’S FEES.—If an employee is the pre24 vailing party in a proceeding under this section, attorney’s

25 fees may be allowed by the Board in accordance with the
66

•HR 2790 IH

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

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

3 SEC. 129B. RESOLUTION OF COMPLAINT.

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

5 the employee and the head of the employing office resolve

6 the issues involved, the employee may withdraw the com7 plaint or the parties may enter into a written agreement,

8 subject to the approval of the Board of Directors.

9 SEC. 129C. COLLECTION AND PRESERVATION OF DOCU10 MENTS.

11 Beginning on the date a respondent receives a com12 plaint under section 8 and ending on the date final action

13 has been taken on the complaint, the respondent shall col14 lect and preserve all documents and other information rel15 evant to such complaint.

16 SEC. 129D. PROHIBITION OF INTIMIDATION.

17 Any intimidation of, or reprisal against, any employee

18 by any Member, officer, or employee of the House of Rep19 resentatives or the Senate, or by the Architect of the Cap20 itol, or anyone employed by the Architect of the Capitol,

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

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

23 a case under this Act constitutes an unlawful employment

24 practice, which may be remedied in the same manner
67

•HR 2790 IH

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

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

3 SEC. 129E. CONFIDENTIALITY.

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

5 confidential except that the Office and the employee may

6 agree to notify the head of the employing office of the alle7 gations.

8 (b) MEDIATION.—All mediation shall be strictly con9 fidential.

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

11 (d), the hearings, deliberations, and decisions of the hear12 ing board shall be confidential.

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

14 records and decisions of hearing boards may be made pub15 lic if required for the purpose of review under section 9

16 or 10.

17 SEC. 129F. TECHNICAL AND CONFORMING AMENDMENTS.

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

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

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

21 of the Fair Labor Standards Act of 1938 (29

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

23 follows:

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

25 of the judicial branch of the Government
68

•HR 2790 IH

1 which has positions in the competitive serv2 ice,’’.

3 (B) COVERAGE.—Section 8 of the Fair

4 Labor Standards Amendments of 1989 is re5 pealed.

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

7 1964.—

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

9 117 and title III of the Civil Rights Act of

10 1991 (2 U.S.C. 60l, 120l et seq.) are repealed.

11 (B) EQUAL EMPLOYMENT OPPOR12 TUNITY.—Section 717(a) of the Civil Rights

13 Act of 1964 (42 U.S.C. 2000e–16(a)) is amend14 ed by striking out ‘‘in those units of the legisla15 tive and judicial branches of the Federal Gov16 ernment having positions in the competitive

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

18 units of the Congress and in those units of the

19 judicial branch of the Federal Government hav20 ing positions in the competitive service’’.

21 (3) AMERICANS WITH DISABILITIES ACT OF

22 1990.—Section 509 of the Americans with Disabil23 ities Act of 1990 (42 U.S.C. 12209) is repealed and

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

25 amended—
69

•HR 2790 IH

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

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

3 and inserting in lieu thereof ‘‘the United States

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

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

6 ‘‘(11) The Congress shall be deemed an employer en7 gaged in an industry affecting commerce.’’.

8 (4) AGE DISCRIMINATION IN EMPLOYMENT

9 ACT OF 1967.—Section 11(b) of the Age Discrimina10 tion in Employment Act of 1967 (29 U.S.C. 630(b))

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

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

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

14 States, or’’ and inserting in lieu thereof ‘‘the execu15 tive and judicial branch of the United States, or’’.

16 (5) FAMILY AND MEDICAL LEAVE ACT OF

17 1993.—Title V of the Family and Medical Leave

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

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

20 (1) OCCUPATIONAL SAFETY AND HEALTH.—

21 (A) DEFINITION OF EMPLOYER.—Section

22 3(5) of the Occupational Safety and Health Act

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

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

25 States or’’ and inserting in lieu thereof ‘‘and in-
70

•HR 2790 IH

1 cludes the Congress (to the extent authorized

2 by a regulation of the Office of Compliance es3 tablished under section 4(c) of the Congres4 sional Accountability Act) but does not include

5 executive or judicial branch of the Federal Gov6 ernment or’’.

7 (B) DEFINITION OF EMPLOYEE.—Section

8 3(6) of such Act (29 U.S.C. 652(6)) is amend9 ed by inserting before the period a comma and

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

11 a regulation of the Office of Compliance estab12 lished under section 4(c) of the Congressional

13 Accountability Act, the employees of the Con14 gress shall be deemed to be employed in a busi15 ness affecting commerce for the purpose of this

16 Act’’.

17 (2) FREEDOM OF INFORMATION.—Section

18 552(f) of title 5, United States Code, is amended by

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

20 inserting before the period a comma and the follow21 ing: ‘‘or the Congress (to the extent authorized by

22 a regulation of the Office of Compliance established

23 under section 4(c) of the Congressional Accountabil24 ity Act)’’.
71

•HR 2790 IH

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

2 United States Code, is amended by striking out

3 ‘‘552(e)’’ and inserting in lieu thereof ‘‘552(f)’’.

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

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

6 6107) is amended by inserting after ‘‘means’’ the

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

8 a regulation of the Office of Compliance established

9 under section 4(c) of the Congressional Accountabil10 ity Act) and’’.

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

12 Rule LI of the House of Representatives is repealed.

13 SEC. 129G. POLITICAL AFFILIATION AND PLACE OF RESI14 DENCE.

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

16 made applicable to Congress under section 4 to consider

17 the—

18 (1) party affiliation;

19 (2) domicile, or

20 (3) political compatibility with the employing

21 office,

22 of an employee with respect to employment decisions.

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

24 the term ‘‘employee’’ means—
72

•HR 2790 IH

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

2 Representatives or Senate leadership;

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

4 subcommittee;

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

6 the House of Representatives or Senate;

7 (4) an officer or employee of the House of Rep8 resentatives or Senate elected by the House of Rep9 resentatives or Senate or appointed by a Member

10 House of Representatives or Senate, other than

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

12 (5) an applicant for a position that is to be oc13 cupied by an individual described in paragraphs (1)

14 through (4).

15 SEC. 129H. REVIEW LIMIT.

16 No Congressional employee may commence a judicial

17 proceeding to redress practices prohibited under a law

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

19 except as provided in this Act.

20 Subtitle D—Sexual Harassment

21 SEC 131. SHORT TITLE.

22 This subtitle may be cited as the ‘‘Sexual Harass23 ment Prevention Act of 1993’’.

24 SEC. 132. FINDINGS AND PURPOSES.

25 (a) FINDINGS.—The Congress finds the following:
73

•HR 2790 IH

1 (1) Sexual harassment in employment persists

2 widely in the workplace, although it violates title VII

3 of the Civil Rights Act of 1964 and adversely affects

4 employees.

5 (2) According to guidelines issued by the Equal

6 Employment Opportunity Commission in 1980, the

7 most effective tool for eliminating sexual harassment

8 is prevention.

9 (3) The United States Merit Systems Protec10 tion Board found in 1981 and 1988 surveys of Fed11 eral Government employees that 42 percent of fe12 male employees and 14 percent of male employees

13 questioned had experienced some kind of harassment

14 in employment. The American Psychological Association estimates that at least 1 15 ⁄2 of all working women

16 have been sexually harassed at the workplace during

17 their careers.

18 (4) The vast majority of sexual harassment epi19 sodes go unreported to a supervisory employee or

20 other individual designated by the employer. Only 5

21 percent of the Government employees who indicated

22 in the 1988 Merit Systems Protection Board survey

23 that they had been harassed filed a formal complaint

24 or requested an investigation of the harassment.
74

•HR 2790 IH

1 (5) Sexual harassment has a significant cost for

2 employees and employers. A 1988 study by Working

3 Woman Magazine shows that sexual harassment

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

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

6 estimates that it is 34 times more expensive for such

7 an employer to ignore the problem than it is to es8 tablish effective programs and policies to address the

9 problem.

10 (6) Most job growth over the next decade is ex11 pected to occur in employment by small employers.

12 Sixty-six percent of the individuals who will enter

13 the work force during this period are expected to be

14 female. The establishment of programs and policies

15 in small-business environments, at a low cost to em16 ployers, will be a key prevention priority to reduce

17 sexual harassment in employment.

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

19 (1) to establish workplace requirements that

20 will reduce the incidence of sexual harassment in

21 employment,

22 (2) to provide a low-cost system to assist em23 ployers to establish programs and policies to prevent

24 sexual harassment in employment,
75

•HR 2790 IH

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

2 definition of sexual harassment and of available ave3 nues of redress, and

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

5 Equal Employment Opportunity Commission to as6 sist in preventing sexual harassment in employment.

7 SEC. 133. EMPLOYER REQUIREMENTS.

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

9 Each employer shall post and keep posted in conspicuous

10 places upon its premises where notices to employees and

11 applicants for employment are customarily posted, a no12 tice that shall be prepared or approved by the Commission

13 and shall set forth—

14 (1) the definition of sexual harassment found in

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

16 Regulations (July 1, 1992),

17 (2) the fact that sexual harassment in employ18 ment is a violation of title VII of the Civil Rights

19 Act of 1964,

20 (3) information describing how to file with the

21 Commission a complaint alleging such harassment,

22 including information on the time periods within

23 which an alleged victim of discrimination (including

24 sexual harassment) must file a charge with the

25 Equal Employment Opportunity Commission, or a
76

•HR 2790 IH

1 State or local fair employment agency, in order to

2 satisfy the statute of limitations applicable to claims

3 under title VII.

4 (4) an address, and the toll-free telephone num5 ber, to be used to contact the Commission regarding

6 such harassment or compliance with the require7 ments of this subtitle, and

8 (5) such other information as the Commission

9 may require.

10 (b) SEPARATE NOTICE TO INDIVIDUAL EMPLOY11 EES.—Each employer shall provide annually to each em12 ployee separately a written notice that includes—

13 (1) the matters specified in paragraphs (1)

14 through (4) of subsection (a),

15 (2) a description of the procedures established

16 by such employer to resolve allegations of sexual

17 harassment in employment, and

18 (3) such other information as the Commission

19 may require.

20 Such notice shall be provided in a manner that ensures

21 that such employee actually receives such notice.

22 (c) MANAGEMENT INFORMATION FOR SUPERVISORY

23 EMPLOYEES.—Not later than 60 days after an employer

24 places an individual in a supervisory employment position

25 or 1 year after the date of the enactment of this Act,
77

•HR 2790 IH

1 whichever occurs later, such employer shall provide to the

2 supervisory employee information specifying the respon3 sibilities of, and the methods to be used by, such employee

4 to ensure that immediate and corrective action is taken

5 to address allegations of sexual harassment in employ6 ment.

7 (d) CIVIL PENALTY.—A willful violation of this sec8 tion shall be punishable by a civil penalty of not more than

9 $1,000 for each separate violation.

10 SEC. 134. DUTIES OF THE COMMISSION.

11 (a) TECHNICAL ASSISTANCE MATERIALS.—Not later

12 than 180 days after the date of the enactment of this Act,

13 the Commission shall prepare, revise from time to time

14 as needed, and make available to employers at no cost (by

15 publication in the Federal Register or other means)—

16 (1) a model notice of the kind required by sec17 tion 133(a) to be posted,

18 (2) a model notice of the kind required by sec19 tion 133(b) to be provided to employees, and

20 (3) voluntary guidelines for the establishment of

21 policies and procedures by employers to address alle22 gations of discrimination (including sexual harass23 ment) in employment.

24 (b) TOLL-FREE TELEPHONE NUMBER.—Not later

25 than 180 days after the date of the enactment of this Act,
78

•HR 2790 IH

1 the Commission shall provide a toll-free telephone number

2 for use by employees and employers in the United States

3 to obtain—

4 (1) information regarding compliance with this

5 subtitle, and

6 (2) the model notices and guidelines prepared

7 under subsection (a).

8 SEC. 135. ENFORCEMENT.

9 Section 133 shall be enforced—

10 (1) by the Commission with respect to viola11 tions alleged by employees as defined in subpara12 graphs (A), (B), and (E) of section 136(2),

13 (2) by the House of Representatives in the

14 manner described in section 117(a)(2)(B) of the

15 Civil Rights Act of 1992 (2 U.S.C. 60l) with respect

16 to violations alleged by employees as defined in sec17 tion 136(2)(C) of this subtitle, and

18 (3) by the Senate in the manner described in

19 the Government Employee Rights Act of 1992 (2

20 U.S. 120 et seq.) with respect to violations alleged

21 by employees as defined in section 136(2)(D) of this

22 subtitle.

23 SEC. 136. DEFINITIONS.

24 For purposes of this subtitle—
79

•HR 2790 IH

1 (1) the term ‘‘Commission’’ means the Equal

2 Employment Opportunity Commission,

3 (2) the term ‘‘employee’’ means—

4 (A) an employee as defined in section

5 701(f) of the Civil Rights Act of 1964 (42

6 U.S.C. 2000e(f)),

7 (B) an employee referred to in section

8 717(a) of such Act (42 U.S.C. 2000e-16(a)),

9 (C) an employee in an employment position

10 of the House of Representatives,

11 (D) a Senate employee as defined in sec12 tion 301(c)(1) of the Government Employee

13 Rights Act of 1991 (2 U.S.C. 1201(c)(1)), or

14 (E) an employee (other than a Senate em15 ployee) in an employment position of an instru16 mentality of the Congress,

17 (3) the term ‘‘employer’’ means—

18 (A) an employer as defined in section

19 701(b) of the Civil Rights Act of 1964 (42

20 U.S.C. 2000e(b)),

21 (B) a Federal entity to which section

22 717(a) of the Civil Rights Act of 1964 (42

23 U.S.C. 2000e-716(a)) applies, or
80

•HR 2790 IH

1 (C) an employing authority of the House

2 of Representatives, of the Senate, or of an in3 strumentality of the Congress,

4 (4) the term ‘‘instrumentality of the Congress’’

5 means the Architect of the Capitol, the Congres6 sional Budget Office, the Office of Technology As7 sessment, the United States Botanic Garden, and

8 those units of the Government Printing Office with

9 positions in the excepted service, and

10 (5) the term ‘‘sexual harassment’’ has the same

11 meaning as such term has for purposes of title VII

12 of the Civil Rights Act of 1964 (42 U.S.C. 2000e13 2000e–17).

14 SEC. 137. EFFECTIVE DATES.

15 (a) GENERAL EFFECTIVE DATE.—Except as pro16 vided in subsection (b), this subtitle shall take effect on

17 the date of the enactment of this Act.

18 (b) EFFECTIVE DATE OF SECTION 3.—Section 133

19 shall take effect 1 year after the date of the enactment

20 of this Act.

21 Subtitle E—Part-Time and

22 Temporary Workers Protection Act

23 SEC. 141. SHORT TITLE.

24 This subtitle may be cited as the ‘‘Part-Time and

25 Temporary Workers Protection Act of 1993’’.
81

•HR 2790 IH

1 SEC. 142. ELIGIBILITY FOR UNEMPLOYMENT COMPENSA2 TION OF CERTAIN INDIVIDUALS SEEKING

3 PART-TIME EMPLOYMENT.

4 (a) GENERAL RULE.—Subsection (a) of section 3304

5 of the Internal Revenue Code of 1986 (relating to require6 ments for approval of State unemployment compensation

7 laws) is amended by striking ‘‘and’’ at the end of para8 graph (17), by redesignating paragraph (18) as paragraph

9 (19), and by inserting after paragraph (17) the following

10 new paragraph:

11 ‘‘(18) in applying the State law provisions relat12 ing to availability for work, active search for work,

13 or refusal to accept work, the term ‘suitable work’

14 shall not include any work where the individual

15 would normally perform services for more hours per

16 week than the number of hours per week for which

17 the individual normally performed services in the in18 dividual’s last job in the base period, and’’.

19 (b) EFFECTIVE DATE.—The amendment made by

20 subsection (a) shall take effect on the date of the enact21 ment of this Act.

22 SEC. 143. ANNUAL BUREAU OF LABOR STATISTICS SURVEY

23 RELATING TO TEMPORARY WORKERS.

24 The Secretary of Labor, acting through the Commis25 sioner of the Bureau of Labor Statistics, shall establish

26 and carry out an annual survey identifying—
82

•HR 2790 IH

1 (1) the characteristics of temporary workers in

2 the United States;

3 (2) the relationship between such workers and

4 the establishments at which such workers are tempo5 rarily employed; and

6 (3) where appropriate, the relationship between

7 such workers and their permanent employers.

8 SEC. 144. PROTECTION OF PART-TIME AND TEMPORARY

9 WORKERS.

10 (a) TREATMENT OF EMPLOYEES WORKING AT LESS

11 THAN FULL-TIME UNDER PARTICIPATION, VESTING, AND

12 ACCRUAL RULES GOVERNING PENSION PLANS.—

13 (1) PARTICIPATION RULES.—

14 (A) IN GENERAL.—Section 202(a)(3) of

15 the Employee Retirement Income Security Act

16 of 1974 (29 U.S.C. 1052(a)(3)) is amended by

17 adding at the end the following new subpara18 graph:

19 ‘‘(E)(i) For purposes of this paragraph, in the case

20 of any employee who, as of the beginning of the 12-month

21 period referred to in subparagraph (A)—

22 ‘‘(I) has customarily completed 500 or more

23 hours of service per year but less than 1,000 hours

24 of service per year, or
83

•HR 2790 IH

1 ‘‘(II) is employed in a type of position in which

2 employment customarily constitutes 500 or more

3 hours of service per year but less than 1,000 hours

4 of service per year,

5 completion of 500 hours of service within such 12-month

6 period shall be treated as completion of 1,000 hours of

7 service.

8 ‘‘(ii) For purposes of this subparagraph, the extent

9 to which employment in any type of position customarily

10 constitutes less than 1,000 hours of service per year shall

11 be determined with respect to each pension plan in accord12 ance with such regulations as the Secretary may prescribe

13 providing for consideration of facts and circumstances pe14 culiar to the work-force constituting the participants in

15 such plan.’’.

16 (B) CONFORMING AMENDMENT.—Section

17 204(b)(1)(E) of such Act (29 U.S.C.

18 1054(b)(1)(E)) is amended by striking ‘‘section

19 202(a)(3)(A)’’ and inserting ‘‘subparagraphs

20 (A) and (E) of section 202(a)(3)’’.

21 (2) VESTING RULES.—

22 (A) IN GENERAL.—Section 203(b)(2) of

23 such Act (29 U.S.C. 1053(b)(2)) is amended by

24 adding at the end the following new subpara25 graph:
84

•HR 2790 IH

1 ‘‘(E)(i) For purposes of this paragraph, in the case

2 of any employee who, as of the beginning of the period

3 designated by the plan pursuant to subparagraph (A)—

4 ‘‘(I) has customarily completed 500 or more

5 hours of service per year but less than 1,000 hours

6 of service per year, or

7 ‘‘(II) is employed in a type of position in which

8 employment customarily constitutes 500 or more

9 hours of service per year but less than 1,000 hours

10 of service per year,

11 completion of 500 hours of service within such period shall

12 be treated as completion of 1,000 hours of service.

13 ‘‘(ii) For purposes of this subparagraph, the extent

14 to which employment in any type of position customarily

15 constitutes less than 1,000 hours of service per year shall

16 be determined with respect to each pension plan in accord17 ance with such regulations as the Secretary may prescribe

18 providing for consideration of facts and circumstances pe19 culiar to the work-force constituting the participants in

20 such plan.’’.

21 (B) 1-YEAR BREAKS IN SERVICE.—Section

22 203(b)(3) of such Act (29 U.S.C. 1053(b)(3))

23 is amended by adding at the end the following

24 new subparagraph:
85

•HR 2790 IH

1 ‘‘(F)(i) For purposes of this paragraph, in the case

2 of any employee who, as of the beginning of the period

3 designated by the plan pursuant to subparagraph (A)—

4 ‘‘(I) has customarily completed 500 or more

5 hours of service per year but less than 1,000 hours

6 of service per year, or

7 ‘‘(II) is employed in a type of position in which

8 employment customarily constitutes 500 or more

9 hours of service per year but less than 1,000 hours

10 of service per year,

11 completion of 250 hours of service within such period shall

12 be treated as completion of 500 hours of service.

13 ‘‘(ii) For purposes of this subparagraph, the extent

14 to which employment in any type of position customarily

15 constitutes less than 1,000 hours of service per year shall

16 be determined with respect to each pension plan in accord17 ance with such regulations as the Secretary may prescribe

18 providing for consideration of facts and circumstances pe19 culiar to the work-force constituting the participants in

20 such plan.’’.

21 (3) ACCRUAL RULES.—Section 204(b)(4)(C) of

22 such Act (29 U.S.C. 1054(b)(4)(C)) is amended—

23 (A) by inserting ‘‘(i)’’ after ‘‘(C)’’; and

24 (B) by adding at the end the following new

25 clauses:
86

•HR 2790 IH

1 ‘‘(ii) For purposes of this subparagraph, in the case

2 of any employee who, as of the beginning of the period

3 designated by the plan pursuant to clause (i)—

4 ‘‘(I) has customarily completed 500 or more

5 hours of service per year but less than 1,000 hours

6 of service per year, or

7 ‘‘(II) is employed in a type of position in which

8 employment customarily constitutes 500 or more

9 hours of service per year but less than 1,000 hours

10 of service per year,

11 completion of 500 hours of service within such period shall

12 be treated as completion of 1,000 hours of service.

13 ‘‘(iii) For purposes of clause (ii), the extent to which

14 employment in any type of position customarily constitutes

15 less than 1,000 hours of service per year shall be deter16 mined with respect to each pension plan in accordance

17 with such regulations as the Secretary may prescribe pro18 viding for consideration of facts and circumstances pecu19 liar to the work-force constituting the participants in such

20 plan.’’.

21 (b) TREATMENT OF EMPLOYEES WORKING AT LESS

22 THAN FULL-TIME UNDER GROUP HEALTH PLANS.

23 (1) IN GENERAL.—Part 2 of subtitle B of title

24 I of such Act is amended—
87

•HR 2790 IH

1 (A) by redesignating section 211 (29

2 U.S.C. 1061) as section 212; and

3 (B) by inserting after section 210 (29

4 U.S.C. 1060) the following new section:

5 ‘‘TREATMENT OF PART-TIME WORKERS UNDER GROUP

6 HEALTH PLANS

7 ‘‘SEC. 211. (a) IN GENERAL.—A reduction in the em8 ployer-provided premium under a group health plan with

9 respect to any employee for any period of coverage solely

10 because the employee’s customary employment is less than

11 full-time may be provided under such plan only if the em12 ployee is described in subsection (b) and only to the extent

13 permitted under subsection (c).

14 ‘‘(b) REDUCTIONS APPLICABLE TO EMPLOYEES

15 WORKING LESS THAN FULL-TIME.—

16 ‘‘(1) IN GENERAL.—An employee is described in

17 this subsection if such employee, as of the beginning

18 of the period of coverage referred to in subsection

19 (a)—

20 ‘‘(A) has customarily completed less than

21 30 hours of service per week, or

22 ‘‘(B) is employed in a type of position in

23 which employment customarily constitutes less

24 than 30 hours of service per week.

25 ‘‘(2) REGULATIONS.—For purposes of para26 graph (1), whether employment in any type of posi-
88

•HR 2790 IH

1 tion customarily constitutes less than 30 hours of

2 service per week shall be determined with respect to

3 each group health plan in accordance with such reg4 ulations as the Secretary may prescribe providing

5 for consideration of facts and circumstances peculiar

6 to the work-force constituting the participants in

7 such plan.

8 ‘‘(c) AMOUNT OF PERMISSIBLE REDUCTION.—The

9 employer-provided premium under a group health plan

10 with respect to any employee for any period of coverage,

11 after the reduction permitted under subsection (a), shall

12 not be less than a ratable portion of the employer-provided

13 premium which would be provided under such plan for

14 such period of coverage with respect to an employee who

15 completes 30 hours of service per week.

16 ‘‘(d) DEFINITIONS.—For purposes of this section—

17 ‘‘(1) GROUP HEALTH PLAN.—The term ‘group

18 health plan’ has the meaning provided such term in

19 section 607(1).

20 ‘‘(2) EMPLOYER-PROVIDED PREMIUM.—

21 ‘‘(A) IN GENERAL.—The term ‘employer22 provided premium’ under a plan for any period

23 of coverage means the portion of the applicable

24 premium under the plan for such period of cov-
89

•HR 2790 IH

1 erage which is attributable under the plan to

2 employer contributions.

3 ‘‘(B) APPLICABLE PREMIUM.—For pur4 poses of subparagraph (A), in determining the

5 applicable premium of a group health plan,

6 principles similar to the principles applicable

7 under section 604 shall apply.’’.

8 (2) CONFORMING AMENDMENTS.—

9 (A) Section 201(1) of such Act (29 U.S.C.

10 1051(1)) is amended by inserting ‘‘, except with

11 respect to section 211’’ before the semicolon.

12 (B) The table of contents in section 1 of

13 such Act is amended by striking the item relat14 ing to section 211 and inserting the following

15 new items:

‘‘Sec. 211. Treatment of part-time workers under group health plans.

‘‘Sec. 212. Effective date.’’.

16 (c) EXPANSION OF DEFINITION OF EMPLOYEE TO

17 INCLUDE CERTAIN INDIVIDUALS WHOSE SERVICES ARE

18 LEASED OR CONTRACTED FOR.—Paragraph (6) of section

19 3 of such Act (29 U.S.C. 1002(6)) is amended—

20 (1) by inserting ‘‘(A)’’ after ‘‘(6)’’; and

21 (2) by adding at the end the following new sub22 paragraph:

23 ‘‘(B) Such term includes, with respect to any em24 ployer, any person who is not an employee (within the
90

•HR 2790 IH

1 meaning of subparagraph (A)) of such employer and who

2 provides services to such employer, if—

3 ‘‘(i) such person has (pursuant to an agreement

4 with such employer or any other person) performed

5 such services for such employer (or for such em6 ployer and related persons (within the meaning of

7 section 144(a)(3) of the Internal Revenue Code of

8 1986)) for a period of at least 1 year (6 months in

9 the case of core health benefits) at the rate of at

10 least 500 hours of service per year, and

11 ‘‘(ii) such services are of a type historically per12 formed, in the business field of the employer, by em13 ployees (within the meaning of subparagraph (A)).’’.

14 (d) EFFECTIVE DATES.

15 (1) IN GENERAL.—Except as provided in para16 graph (2), the amendments made by this section

17 shall apply with respect to plan years beginning on

18 or after January 1, 1994.

19 (2) SPECIAL RULE FOR COLLECTIVELY BAR20 GAINED PLANS.—In the case of a plan maintained

21 pursuant to 1 or more collective bargaining agree22 ments between employee representatives and 1 or

23 more employers ratified on or before the date of the

24 enactment of this Act, paragraph (1) shall be ap25 plied to benefits pursuant to, and individuals covered
91

•HR 2790 IH

1 by, any such agreement by substituting for ‘‘Janu2 ary 1, 1994’’ the date of the commencement of the

3 first plan year beginning on or after the earlier of—

4 (A) the later of—

5 (i) January 1, 1994, or

6 (ii) the date on which the last of such

7 collective bargaining agreements termi8 nates (determined without regard to any

9 extension thereof after the date of the en10 actment of this Act), or

11 (B) January 1, 1996.

12 (3) PLAN AMENDMENTS.—If any amendment

13 made by this section requires an amendment to any

14 plan, such plan amendment shall not be required to

15 be made before the first plan year beginning on or

16 after January 1, 1995, if—

17 (A) during the period after such amend18 ment made by this section takes effect and be19 fore such first plan year, the plan is operated

20 in accordance with the requirements of such

21 amendment made by this section, and

22 (B) such plan amendment applies retro23 actively to the period after such amendment

24 made by this section takes effect and such first

25 plan year.
92

•HR 2790 IH

1 A plan shall not be treated as failing to provide defi2 nitely determinable benefits or contributions, or to

3 be operated in accordance with the provisions of the

4 plan, merely because it operates in accordance with

5 this paragraph.

6 Subtitle F—Unemployment

7 Insurance Reform

8 SEC. 151. UNEMPLOYMENT INSURANCE REFORM.

9 (a) Subsection (a) of section 3304 of the Internal

10 Revenue Code of 1986 (relating to approval of State un11 employment compensation laws) is amended by striking

12 ‘‘and’’ at the end of paragraph (17), by redesignating

13 paragraph (18) as paragraph (19), and by inserting after

14 paragraph (17) the following new paragraph:

15 ‘‘(18)(A) if any individual leaves employment

16 for a qualified family-related reason, for purposes of

17 determining such individual’s eligibility for com18 pensation for any subsequent week for which such

19 individual meets the State law requirements relating

20 to availability for work and active search for work—

21 ‘‘(i) such individual shall be treated as

22 leaving such employment for good cause, and

23 ‘‘(ii) any failure while the qualified family24 related reason continues to return to such em-
93

•HR 2790 IH

1 ployment or to otherwise meet such State law

2 requirements shall be disregarded,

3 ‘‘(B) for purposes of subparagraph (A), the

4 term ‘qualified family reason’ means any cir5 cumstance which entitles the individual to unpaid

6 leave under the Family and Medical Leave Act of

7 1993 (or would entitle the individual to such leave

8 if the individual’s employer were subject to the re9 quirements of such Act) whether or not the individ10 ual returns to employment after the leave to which

11 such individual is (or would be entitled); and’’.

12 (b)(1) Except as provided by paragraph (2), the

13 amendment made by subsection (a) shall take effect on

14 November 1, 1993.

15 (2) In the case of any State the legislature of which

16 has not been in session for at least 30 calendar days

17 (whether or not successive) between the date of the enact18 ment of this Act and November 1, 1993, the amendment

19 made by subsection (a) shall take effect 30 calendar days

20 after the first day on which such legislature is in session

21 on or after November 1, 1993.
94

•HR 2790 IH

1 Subtitle G—Federal Temporary

2 Workers Protection Act

3 SEC. 161. ELIGIBILITY FOR HEALTH BENEFITS.

4 (a) IN GENERAL.—Paragraph (4) of section 8913(b)

5 of title 5, United States Code, is amended to read as fol6 lows:

7 ‘‘(4) an employee who is occupying a position

8 on a temporary basis, if such employee has, in the

9 aggregate, completed the equivalent of at least 1

10 year of service in such position within the preceding

11 2 years.’’.

12 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

13 (1) Section 8906a of title 5, United States Code, is re14 pealed.

15 (2) The table of sections for chapter 89 of title 5,

16 United States Code, is amended by striking the item relat17 ing to section 8906a.

18 SEC. 162. EFFECTIVE DATE.

19 (a) IN GENERAL.—This Act and the amendments

20 made by this Act shall take effect on the date of the enact21 ment of this Act, and any change in contributions payable

22 by or on behalf of an individual to the Employees Health

23 Benefits Fund (described in section 8909 of title 5, United

24 States Code) as a result of the enactment of this Act shall
95

•HR 2790 IH

1 take effect as of the first applicable pay period beginning

2 on or after such date.

3 (b) CREDITABILITY OF PRIOR SERVICE.—Service

4 performed before the effective date of this Act may be

5 taken into account for purposes of the amendment made

6 by section 161(a).

7 Subtitle H—Legislative Pay Equity

8 Study

9 SEC. 171. DECLARATION OF POLICY.

10 The Congress is committed to the elimination of all

11 forms of discrimination that adversely affect pay or work12 ing conditions of any employee because of the race, color,

13 religion, sex, or national origin of the employee, and it is

14 the policy of the Congress that persons employed in the

15 legislative branch shall receive equal pay in cases in which

16 the work performed is comparable, as measured by the

17 composite of skill, effort, responsibility, and working con18 ditions normally required in the performance of the job.

19 SEC. 172. ESTABLISHMENT OF COMMISSION.

20 (a) IN GENERAL.—There is established the Commis21 sion on Employment Discrimination in the Legislative

22 Branch (hereinafter in this resolution referred to as the

23 ‘‘Commission’’).
96

•HR 2790 IH

1 (b) APPOINTMENT OF MEMBERS.—The Commission

2 shall consist of thirteen members to be appointed for the

3 life of the Commission as follows:

4 (1) Four shall be Members of the House of

5 Representatives, appointed by the Speaker of the

6 House of Representatives, two upon recommendation

7 of the majority leader and two upon recommendation

8 of the minority leader.

9 (2) Four shall be Senators, appointed by the

10 President pro tempore, two upon recommendation of

11 the majority leader and two upon recommendation of

12 the minority leader.

13 (3) Two shall be other than Members of Con14 gress, appointed by the Speaker of the House of

15 Representatives and shall, to the extent practicable,

16 be persons with expertise in job evaluation. One such

17 member shall be appointed upon recommendation of

18 the majority leader and one upon recommendation of

19 the minority leader.

20 (4) Two shall be other than Members of Con21 gress, appointed by the President pro tempore of the

22 Senate and shall, to the extent practicable, be per23 sons with expertise in job evaluation. One such

24 member shall be appointed upon recommendation of
97

•HR 2790 IH

1 the majority leader and one shall be appointed upon

2 recommendation of the minority leader.

3 (5) One shall be appointed by the Speaker of

4 the House of Representatives and the President pro

5 tempore of the Senate, acting jointly, upon rec6 ommendation of the members appointed under para7 graphs (1) through (4).

8 (c) PREREQUISITES RELATING TO CERTAIN AP9 POINTMENTS.—(1) Of the members of the Commission ap10 pointed under subsection (b)(3)—

11 (A) one shall be a member of one of the two

12 largest labor unions at the Library of Congress; and

13 (B) one shall be a manager at the Library of

14 Congress.

15 (2) Of the members of the Commission appointed

16 under subsection (b)(4)—

17 (A) one shall be a member of one of the two

18 largest labor unions at the Library of Congress; and

19 (B) one shall be a manager at the Library of

20 Congress.

21 (3) The member appointed under paragraph (1)(A)

22 shall not be from the same labor union as the member

23 appointed under paragraph (2)(A).
98

•HR 2790 IH

1 (d) REMOVAL.—The person making an appointment

2 may remove a member of the Commission for neglect of

3 duty or malfeasance in office.

4 (e) VACANCIES.—A vacancy in the Commission shall

5 be filled in the manner in which the original appointment

6 is made.

7 (f) CHAIRMAN; VICE CHAIRMAN.—The Commission

8 shall elect a chairman and a vice chairman from among

9 its members. The chairman and vice chairman shall not

10 be of the same political party.

11 (g) QUORUM.—Seven members of the Commission

12 shall constitute a quorum for the transaction of business,

13 but the Commission may establish a lesser number for

14 holding hearings, taking testimony, and receiving evi15 dence.

16 (h) COMMENCEMENT OF OPERATIONS.—Members

17 shall be appointed and the Commission shall commence

18 operation not later than four weeks after the date on

19 which this resolution is agreed to.

20 SEC. 173. FUNCTIONS OF COMMISSION.

21 (a) IN GENERAL.—The Commission shall—

22 (1) employ a nongovernmental consultant with

23 expertise in job evaluation to study and compare the

24 compensation paid within and between job classifica25 tions in the Library of Congress and to analyze per-
99

•HR 2790 IH

1 sonnel policies and practices in the Library of Con2 gress;

3 (2) evaluate the compensation system and per4 sonnel policies and practices in the Library of Con5 gress for compliance with title VII of the Civil

6 Rights Act of 1964 and make specific recommenda7 tions (other than any recommendation that, if imple8 mented, would result in a reduction in the rate of

9 pay payable for any position) to the Congress for

10 such action as may be necessary to achieve that

11 compliance;

12 (3) develop a comprehensive plan for applica13 tion of the principles of title VII of the Civil Rights

14 Act of 1964 throughout the legislative branch; and

15 (4) make specific recommendations (other than

16 any recommendation that, if implemented, would re17 sult in a reduction in the rate of pay payable for any

18 position) to the Congress for improvement of person19 nel policies and practices in the legislative branch

20 that may be necessary to carry out the policy de21 clared in section 171.

22 (b) SPECIFIC REQUIREMENT RELATING TO THE

23 CONSULTANT.—In carrying out the requirements of para24 graph (1) of subsection (a), the consultant employed under

25 such paragraph shall use standard objective job-evaluation
100

•HR 2790 IH

1 techniques to determine whether the compensation system

2 at the Library of Congress is in compliance with the policy

3 objectives in section 171.

4 SEC. 174. STAFF OF COMMISSION.

5 (a) STAFF DIRECTOR.—The Commission shall have

6 a Staff Director who shall be appointed by the Chairman

7 and who shall be paid at a rate not to exceed the maximum

8 rate of basic pay payable under the General Schedule (as

9 determined under section 5376 of title 5, United States

10 Code).

11 (b) ADDITIONAL STAFF.—With the approval of the

12 Commission, the Chairman may appoint, terminate, and

13 fix the pay of additional staff. Any person so appointed

14 may be paid at a rate not to exceed the maximum rate

15 of basic pay payable for grade GS–15 of the General

16 Schedule, under section 5332 of title 5, United States

17 Code.

18 SEC. 175. COMPENSATION OF MEMBERS.

19 (a) PROHIBITION OF COMPENSATION OF CERTAIN

20 MEMBERS.—A member of the Commission who is a Mem21 ber of Congress or a full-time officer or employee of the

22 United States shall receive no additional pay by reason

23 of service on the Commission.

24 (b) COMPENSATION OF OTHER MEMBERS.—Any

25 other member of the Commission shall be paid at a rate
101

•HR 2790 IH

1 equal to the daily equivalent of the maximum annual rate

2 of basic pay payable under the General Schedule (as deter3 mined under section 5376 of title 5, United States Code)

4 for each day, including travel time, such member is en5 gaged in the performance of duties of the Commission.

6 SEC. 176. POWERS OF COMMISSION.

7 The Commission may hold hearings, take testimony,

8 receive evidence, administer oaths or affirmations to wit9 nesses appearing before it, and authorize any member or

10 agent of the Commission to exercise such powers.

11 SEC. 177. REPORTS AND TERMINATION OF COMMISSION.

12 The Commission may submit interim reports to the

13 Congress and shall submit a final report to the Congress

14 not later than 18 months after the date on which this reso15 lution is agreed to. The Commission shall cease to exist

16 thirty days after submitting the final report.

17 SEC. 178. ADMINISTRATIVE PROVISIONS.

18 (a) FUNDING.—There shall be paid from the contin19 gent fund of the House of Representatives and the contin20 gent fund of the Senate such sums as may be necessary

21 to carry out this resolution. One-half of the total of such

22 sums shall be paid from each such fund. Payment shall

23 be upon vouchers submitted by the Chairman of the Com24 mission and approved by the Committee on House Admin25 istration of the House of Representatives or the Commit-
102

•HR 2790 IH

1 tee on Rules and Administration of the Senate, as appro2 priate.

3 (b) STATUS OF MEMBERS AND STAFF.—Members of

4 the Commission (other than Members of Congress) and

5 the staff of the Commission shall be treated as detailed

6 employees, or as temporary or intermittent employees of

7 the House or of the Senate, as appropriate.

8 (c) REGULATIONS.—The Committee on House Ad9 ministration of the House of Representatives and the

10 Committee on Rules and Administration of the Senate,

11 acting jointly, shall prescribe such regulations as may be

12 necessary to carry out this resolution. Employment of ex13 perts and consultants, travel, procurement of support

14 services, procedures for securing information, and other

15 administrative matters with respect to the Commission

16 shall be in accordance with such regulations.

17 TITLE II—ECONOMIC

18 OPPORTUNITY

19 Subtitle A—Women’s Business

20 Procurement Assistance Act

21 SEC. 201. SHORT TITLE.

22 This subtitle may be cited as the ‘‘Women’s Business

23 Procurement Assistance Act of 1993’’.
103

•HR 2790 IH

1 SEC. 202. GOAL SETTING.

2 Section 15(g) of the Small Business Act (15 U.S.C.

3 644(g)) is amended—

4 (1) in paragraph (1) by inserting ‘‘, small busi5 ness concerns owned and controlled by women,’’

6 after ‘‘small business concerns’’ the first place it ap7 pears in the first sentence and the first place it ap8 pears in the fourth sentence;

9 (2) in the first sentence of paragraph (2) by in10 serting ‘‘by small business concerns owned and con11 trolled by women,’’ after ‘‘small business concerns,’’;

12 (3) in the second sentence of paragraph (2) by

13 inserting ‘‘, small business concerns owned and con14 trolled by women,’’ after ‘‘small business concerns’’

15 the first place it appears; and

16 (4) in the fourth sentence of paragraph (2) by

17 inserting ‘‘small business concerns owned and con18 trolled by women and’’ after ‘‘including participation

19 by’’.

20 SEC. 203. REPORTING.

21 Section 15(h) of the Small Business Act (15 U.S.C.

22 644(h)) is amended—

23 (1) by inserting ‘‘, small business concerns

24 owned and controlled by women,’’ after ‘‘small busi25 ness concerns’’ the first place it appears in para26 graph (1), the first place it appears in paragraph
104

•HR 2790 IH

1 (2)(A), and the first place it appears in paragraph

2 (2)(D);

3 (2) in paragraph (1) by inserting ‘‘and sub4 contracts’’ after ‘‘contracts’’;

5 (3) by adding at the end of paragraph (1) the

6 following new sentence: ‘‘The Administration shall

7 submit to the Committee on Small Business of the

8 Senate and the Committee on Small Business of the

9 House of Representatives information obtained from

10 such reports, together with appropriate comments.’’;

11 and

12 (4) in paragraph (2)(F) by striking ‘‘women13 owned small business enterprises’’ and inserting

14 ‘‘small business concerns owned and controlled by

15 women’’.

16 SEC. 204. SUBCONTRACTING.

17 (a) STATEMENT OF POLICY.—Section 8(d)(1) of the

18 Small Business Act (15 U.S.C. 637(d)(1)) is amended—

19 (1) in the first sentence by inserting ‘‘small

20 business concerns owned and controlled by women,’’

21 after ‘‘small business concerns,’’; and

22 (2) in the second sentence by inserting ‘‘, small

23 business concerns owned and controlled by women,’’

24 after ‘‘small business concerns’’ the first place it

25 appears.
105

•HR 2790 IH

1 (b) CONTRACT CLAUSE.—The contract clause speci2 fied in section 8(d)(3) of the Small Business Act (15

3 U.S.C. 637(d)(3)) is amended as follows:

4 (1) Subparagraph (A) of such clause is amend5 ed by inserting ‘‘, small business concerns owned

6 and controlled by women,’’ after ‘‘small business

7 concerns’’ the first place it appears in the first sen8 tence and the first place it appears in the second

9 sentence.

10 (2) Subparagraph (C) of such clause is amend11 ed to read as follows:

12 ‘‘(C)(i) As used in this contract, the term ‘small

13 business concern’ means a small business concern as

14 defined pursuant to section 3 of the Small Business

15 Act and relevant regulations promulgated pursuant

16 thereto.

17 ‘‘(ii) As used in this contract, the term ‘small

18 business concern owned and controlled by socially

19 and economically disadvantaged individuals’ means a

20 small business concern—

21 ‘‘(I) which is at least 51 percent owned by

22 one or more socially and economically disadvan23 taged individuals; or, in the case of any publicly

24 owned business, at least 51 percent of the stock
106

•HR 2790 IH

1 of which is owned by one or more socially and

2 economically disadvantaged individuals; and

3 ‘‘(II) whose management and daily busi4 ness operations are controlled by one or more of

5 such individuals.

6 The contractor shall presume that socially and eco7 nomically disadvantaged individuals include Black

8 Americans, Hispanic Americans, Native Americans,

9 Asian Pacific Americans, and other minorities, or

10 any other individual found to be disadvantaged by

11 the Administration pursuant to section 8(a) of the

12 Small Business Act.

13 ‘‘(iii) As used in this contract, the term ‘small

14 business concern owned and controlled by women’

15 means a small business concern—

16 ‘‘(I) which is at least 51 percent owned by

17 one or more women; or, in the case of any pub18 licly owned business, at least 51 percent of the

19 stock of which is owned by one or more women;

20 and

21 ‘‘(II) whose management and daily busi22 ness operations are controlled by such women.

23 The contractor shall presume that women have been

24 subjected to gender based discrimination and may

25 determine whether a small business concern meets
107

•HR 2790 IH

1 the percentage requirements under subclause (I)

2 without regard to the community property laws of

3 any jurisdiction.’’.

4 (c) CONFORMING AMENDMENTS.—Section 8(d) of

5 the Small Business Act (15 U.S.C. 637(d)) is amended

6 by inserting ‘‘, small business concerns owned and con7 trolled by women,’’ after ‘‘small business concerns’’ the

8 first place it appears in paragraphs (3)(D), (4)(D),

9 (4)(E), (6)(A), (6)(C), (6)(F), (10)(B), and (11).

10 (d) EXCLUSION.—No business concern shall be

11 deemed eligible for any contract or other assistance pursu12 ant to section 2323 of title 10, United States Code, due

13 solely to the provisions of this section.

14 SEC. 205. WOMEN-IN-BUSINESS SPECIALISTS.

15 Section 15(k) of the Small Business Act (15 U.S.C.

16 644(k)) is amended—

17 (1) by inserting ‘‘(1)’’ after ‘‘(k)’’;

18 (2) by redesignating paragraphs (1), (2), (3),

19 (4), (5), (6), (7), (8), and (9) as subparagraphs (A),

20 (B), (C), (D), (E), (F), (G), (H), and (I), respec21 tively;

22 (3) by striking ‘‘and’’ at the end of subpara23 graph (H) (as redesignated);

24 (4) in subparagraph (I) (as redesignated), by

25 striking out the period after ‘‘Code’’ and all that fol-
108

•HR 2790 IH

1 lows through ‘‘shall be made’’ and inserting in lieu

2 thereof a comma, and by striking the period after

3 ‘‘contract file’’ and inserting ‘‘, and’’;

4 (5) by inserting after subparagraph (I) (as re5 designated) the following new subparagraph:

6 ‘‘(J) subject to paragraph (2)(A), designate an

7 employee of such office to be a women-in-business

8 specialist responsible for the implementation and

9 execution of programs designed to assist small busi10 ness concerns owned and controlled by women.’’;

11 (6) by designating the last sentence as para12 graph (2); and

13 (7) by adding at the end the following new

14 paragraph:

15 ‘‘(3)(A) The Director of Small and Disadvantaged

16 Business Utilization in a Federal agency shall ensure that

17 the women-in-business specialist designated pursuant to

18 paragraph (1)(J) has sufficient knowledge of small busi19 ness concerns owned and controlled by women and the

20 Federal procurement process, other appropriate qualifica21 tions, and appropriate training from the Office of Wom22 en’s Business Ownership to effectively carry out the spe23 cialist’s responsibilities under this Act.

24 ‘‘(B) Each women-in-business specialist designated

25 pursuant to paragraph (1)(J) in a Federal agency shall
109

•HR 2790 IH

1 work full time to initiate and execute programs to assist

2 small business concerns owned and controlled by women

3 in participating in the performance of contracts let by the

4 agency. The specialist shall—

5 ‘‘(i) respond to requests from small business

6 concerns owned and controlled by women;

7 ‘‘(ii) identify and solicit offers from small busi8 ness concerns owned and controlled by women, as

9 required under section 15(p) of this Act, through

10 means such as sending solicitation packages to such

11 concerns for each proposed contract for which such

12 concerns may be eligible to compete and holding

13 workshops on procurement for such concerns; and

14 ‘‘(iii) regularly monitor the agency’s progress

15 toward meeting the annual goal established under

16 subsection (g) for participation by small business

17 concerns owned and controlled by women.’’.

18 SEC. 206. OUTREACH.

19 Section 15 the Small Business Act (15 U.S.C. 644)

20 is amended by adding at the end the following new sub21 section:

22 ‘‘(p) Each Federal agency having procurement pow23 ers shall engage in affirmative efforts to identify and so24 licit offers from small business concerns owned and con25 trolled by women and the small business concerns owned
110

•HR 2790 IH

1 and controlled by socially and economically disadvantaged

2 individuals. To the maximum extent practicable, a rep3 resentative number of such concerns shall receive solicita4 tion packages for each proposed acquisition for which such

5 concerns may be eligible to compete.’’.

6 SEC. 207. ESTABLISHMENT OF THE OFFICE OF WOMEN’S

7 BUSINESS OWNERSHIP.

8 The Small Business Act (15 U.S.C. 631 et seq.) is

9 amended by adding at the end the following new section:

10 ‘‘SEC. 28. OFFICE OF WOMEN’S BUSINESS OWNERSHIP.

11 ‘‘(a) ESTABLISHMENT.—There is established in the

12 Small Business Administration the Office of Women’s

13 Business Ownership (hereinafter in this section referred

14 to as the ‘Office’).

15 ‘‘(b) DIRECTOR.—The Director of the Office (herein16 after in this section referred to as the ‘Director’) shall be

17 appointed by the Administrator not later than sixty days

18 after the date of the enactment of this section.

19 ‘‘(c) FUNCTIONS.—The Director shall perform the

20 following functions:

21 ‘‘(1) Promote, coordinate, and monitor the

22 plans, programs, and operations of Federal depart23 ments and agencies which may contribute to the es24 tablishment, preservation, and strengthening of

25 small business concerns owned and controlled by
111

•HR 2790 IH

1 women. The Director may, as appropriate, develop

2 comprehensive interagency plans and specific pro3 gram goals for small business concerns owned and

4 controlled by women with the cooperation of the

5 departments and agencies.

6 ‘‘(2) Establish policies, definitions, procedures,

7 and guidelines to govern the implementation, inter8 pretation, and application of this section, and gen9 erally perform such functions and take such steps as

10 the Director may consider to be necessary or appro11 priate to carry out this section.

12 ‘‘(3) Promote the mobilization of activities and

13 resources of State and local governments, business

14 and trade associations, private industry, colleges and

15 universities, foundations, professional organizations,

16 and volunteer and other groups toward the growth

17 of small business concerns owned and controlled by

18 women, and facilitate the coordination of the efforts

19 of such groups with those of Federal departments

20 and agencies.

21 ‘‘(4) Make an annual assessment of the

22 progress made in the Federal Government toward

23 assisting small business concerns owned and con24 trolled by women to enter the mainstream of busi-
112

•HR 2790 IH

1 ness ownership and provide recommendations for fu2 ture actions to the Administrator.

3 ‘‘(5) Convene and consult (as necessary) with

4 persons inside and outside government to develop

5 and promote new ideas concerning the development

6 of small business concerns owned and controlled by

7 women.

8 ‘‘(6) Consider the findings and recommenda9 tions of government and private sector investigations

10 and studies of the problems of women entrepreneurs,

11 and promote further research into such problems.

12 ‘‘(7) Monitor the contracting and subcontract13 ing performance of each department, agency, and

14 business enterprise participating under this section.

15 ‘‘(8) Promote access and participation for small

16 business concerns owned and controlled by women to

17 a fair proportion of the broad array of purchases

18 and contracts for property and services for the Fed19 eral Government.

20 ‘‘(9) Provide training as needed to women-in21 business specialists designated pursuant to section

22 15(k)(1)(J) to carry out their responsibilities under

23 this Act.’’.
113

•HR 2790 IH

1 SEC. 208. GENERAL ACCOUNTING OFFICE REPORT.

2 (a) REPORT REQUIREMENT.—Not later than 3 years

3 after the date of the enactment of this Act, the Comptrol4 ler General shall submit to Congress a report comparing

5 the number of small business concerns owned and con6 trolled by women procuring Federal contracts during the

7 year preceding the date of the enactment of this Act with

8 the number of such businesses during each of the 3 years

9 occurring after such date. If the number of such busi10 nesses did not increase significantly by the end of the 3-

11 year period beginning on the date of the enactment of this

12 Act, the Comptroller General shall include in the report

13 recommendations on actions that could be taken to

14 increase the number.

15 (b) SENSE OF CONGRESS.—If the report required

16 under subsection (a) shows that the number of small busi17 ness concerns owned and controlled by women did not in18 crease significantly by the end of the 3-year period begin19 ning on the date of the enactment of this Act, it is the

20 sense of Congress that further legislative steps should be

21 taken to ensure that the number of Federal contracts en22 tered into with small business concerns owned and con23 trolled by women realistically reflects the potential of such

24 business concerns to perform Federal contracting and sub25 contracting work.
114

•HR 2790 IH

1 Subtitle B—Microenterprise

2 Opportunity Expansion Act

3 SEC. 211. SHORT TITLE.

4 This subtitle may be cited as the ‘‘Microenterprise

5 Opportunity Expansion Act’’.

6 SEC. 212. PUBLIC ASSISTANCE PROVISIONS.

7 (a) BUSINESS ASSETS EXCLUDED FROM RESOURCES

8 AND INCOME.—

9 (1) AFDC.—

10 (A) EXCLUSION FROM RESOURCES.—Sec11 tion 402(a)(7)(B) of the Social Security Act

12 (42 U.S.C. 602(a)(8)(A)) is amended—

13 (i) by striking ‘‘or’’ at the end of

14 clause (iii); and

15 (ii) by inserting before the semicolon

16 the following: ‘‘, or (v) any asset of the

17 family which is primarily used for business

18 purposes in a business owned, in whole or

19 in part, by an individual eligible for aid

20 under any State plan approved under this

21 part; and’’.

22 (B) EXCLUSION FROM INCOME.—Section

23 402(a)(8)(A) of such Act (42 U.S.C.

24 602(a)(8)(A)) is amended—
115

•HR 2790 IH

1 (i) by striking ‘‘and’’ at the end of

2 clause (vii); and

3 (ii) by inserting after clause (viii) the

4 following:

5 ‘‘(ix) shall disregard from the income of

6 any child, relative, or other individual specified

7 in clause (ii) any asset which is primarily used

8 for business purposes in a business owned, in

9 whole or in part, by an individual eligible for

10 aid under any State plan approved under this

11 part; and’’.

12 (2) SSI.—

13 (A) EXCLUSION FROM INCOME.—Section

14 1612(b) of such Act (42 U.S.C. 1382a(b)) is

15 amended—

16 (i) by striking ‘‘and’’ at the end of

17 paragraph (17);

18 (ii) in paragraph (18), by striking the

19 period and inserting ‘‘; and’’; and

20 (iii) by adding at the end the follow21 ing:

22 ‘‘(19) any asset of such individual (or such

23 spouse) which is primarily used for business pur24 poses in a business owned, in whole or in part, by
116

•HR 2790 IH

1 an individual eligible for aid under any State plan

2 approved under part A of title IV.’’.

3 (B) EXCLUSION FROM RESOURCES.—Sec4 tion 1613(a) of such Act (42 U.S.C. 1382b(a))

5 is amended—

6 (i) by striking ‘‘and’’ at the end of

7 paragraph (9);

8 (ii) in paragraph (10), by striking the

9 period and inserting ‘‘; and’’; and

10 (iii) by inserting after paragraph (10)

11 the following:

12 ‘‘(11) any asset of (including any amount re13 ceived as a loan by) such individual (or such spouse)

14 which is primarily used for business purposes in a

15 business owned, in whole or in part, by an individual

16 eligible for aid under any State plan approved under

17 part A of title IV.’’.

18 (b) PUBLIC ASSISTANCE BENEFITS EXTENDED FOR

19 PERSONS WITH INCOME FROM OR RESOURCES IN A

20 MICROENTERPRISE.—

21 (1) AFDC AND MEDICAID.—Section 402(a) of

22 such Act (42 U.S.C. 602(a)) is amended by inserting

23 after paragraph (28) the following:

24 ‘‘(29) notwithstanding paragraphs (7) and (8),

25 provide that, during the 2-year period beginning on
117

•HR 2790 IH

1 the first day any member of a family eligible for

2 benefits under the State plan sells any good or serv3 ice as part of operating a commercial enterprise with

4 5 or fewer employees, which is owned in whole or in

5 part by such family member, all income of such fam6 ily member attributable to the enterprise and all re7 sources in which such family member has a bene8 ficial interest used primarily in the enterprise shall

9 be disregarded in determining the amount of aid to

10 which the family is entitled under the State plan;’’.

11 (2) SSI AND MEDICAID.—

12 (A) EXCLUSION FROM INCOME.—Section

13 1612(b) of such Act (42 U.S.C. 1382a(b)), as

14 amended by subsection (a)(2)(A) of this section,

15 is amended—

16 (i) by striking ‘‘and’’ at the end of

17 paragraph (18);

18 (ii) in paragraph (19), by striking the

19 period and inserting ‘‘; and’’; and

20 (iii) by adding at the end the follow21 ing:

22 ‘‘(20) during the 2-year period beginning on the

23 first day such individual (or such spouse) sells any

24 good or service as part of operating a commercial

25 enterprise with 5 or fewer employees, which is owned
118

•HR 2790 IH

1 in whole or in part by such individual (or such

2 spouse), all income of such individual (or such

3 spouse) attributable to the enterprise.’’.

4 (B) EXCLUSION FROM RESOURCES.—Sec5 tion 1613(a) of such Act (42 U.S.C. 1382b(a)),

6 as amended by subsection (a)(2)(B) of this sec7 tion, is amended—

8 (i) by striking ‘‘and’’ at the end of

9 paragraph (10);

10 (ii) in paragraph (11), by striking the

11 period and inserting ‘‘; and’’; and

12 (iii) by inserting after paragraph (11)

13 the following:

14 ‘‘(12) during the 2-year period beginning on the

15 first day such individual (or such spouse) sells any

16 good or service as part of operating a commercial

17 enterprise with 5 or fewer employees, which is owned

18 in whole or in part by such individual (or such

19 spouse), all resources of such individual (or such

20 spouse) that are used primarily in the enterprise.’’.

21 SEC. 213. UNEMPLOYMENT COMPENSATION FOR INDIVID22 UALS STARTING MICROENTERPRISES.

23 (a) STATE LAW REQUIREMENTS.—Subsection (a) of

24 section 3304 of the Internal Revenue Code of 1986 (relat25 ing to State law requirements) is amended by striking
119

•HR 2790 IH

1 ‘‘and’’ at the end of paragraph (17), by redesignating

2 paragraph (18) as paragraph (19), and by inserting after

3 paragraph (17) the following new paragraph:

4 ‘‘(18) compensation shall be payable to individ5 uals starting microenterprises as provided in section

6 3(b) of the Act for microenterprises; and’’.

7 (b) PAYMENT OF COMPENSATION TO INDIVIDUALS

8 STARTING MICROENTERPRISES.—

9 (1) IN GENERAL.—For purposes of section

10 3304(a)(18) of the Internal Revenue Code of 1986,

11 a State law shall provide that—

12 (A) each individual who is an eligible indi13 vidual with respect to any benefit year shall be

14 entitled to receive regular or extended unem15 ployment compensation, as the case may be,

16 without regard to any State or Federal require17 ments relating to availability for work, active

18 search for work, or refusal to accept suitable

19 work, and

20 (B) such individual shall be considered to

21 be unemployed for purposes of the State and

22 Federal laws applicable to unemployment com23 pensation, as long as the individual is actively

24 involved in the ownership and operation of a

25 microenterprise or the preparation of a business
120

•HR 2790 IH

1 plan for the ownership and operation of a

2 microenterprise and is receiving guidance or

3 consultation in starting up or operating a

4 microenterprise from an experienced entre5 preneur or provider of technical business assist6 ance.

7 (2) AUTHORIZATION FOR USING UNEMPLOY8 MENT FUNDS TO PROVIDE STARTUP ASSISTANCE.—

9 Nothing in section 3304(a)(4) or 3306(f) of the In10 ternal Revenue Code of 1986 or section 303(a)(5) of

11 the Social Security Act shall prevent amounts in a

12 State unemployment fund from being used to pro13 vide assistance to eligible individuals in starting

14 microenterprises. The amount of assistance so pro15 vided shall be in the form of a lump sum and shall

16 be in lieu of the periodic payments of compensation

17 to which the individual would otherwise have been

18 entitled and shall not exceed the aggregate amount

19 of compensation to which the individual would other20 wise have been so entitled.

21 (3) DEFINITIONS.—For purposes of this sec22 tion—

23 (A) ELIGIBLE INDIVIDUAL.—The term ‘‘el24 igible individual’’ means, with respect to any

25 benefit year, an individual who—
121

•HR 2790 IH

1 (i) is eligible to receive regular or ex2 tended compensation under the State law

3 during such benefit year,

4 (ii) is starting a microenterprise in

5 which the individual will have an ownership

6 interest, and

7 (iii) submits a request to the State

8 agency for compensation under this sub9 section.

10 (B) MICROENTERPRISE.—The term

11 ‘‘microenterprise’’ means any unincorporated

12 trade or business with 5 or fewer employees, 1

13 or more of whom own the enterprise.

14 (C) OTHER TERMS.—The terms ‘‘com15 pensation’’, ‘‘extended compensation’’, ‘‘regular

16 compensation’’, ‘‘benefit year’’, ‘‘State’’, and

17 ‘‘State law’’ have the respective meanings given

18 to such terms under section 205 of the Federal19 State Extended Unemployment Compensation

20 Act of 1970.

21 SEC. 214. TREATMENT OF MICROENTERPRISE LOANS AND

22 GRANTS BY INSURED DEPOSITORY INSTITU23 TIONS AS COMMUNITY REINVESTMENT.

24 (a) IN GENERAL.—Section 804 of the Community

25 Reinvestment Act of 1977 (12 U.S.C. 2903) is amended—
122

•HR 2790 IH

1 (1) by striking ‘‘SEC. 804. In connection with’’

2 and inserting ‘‘(a) IN GENERAL.—In connection

3 with’’; and

4 (2) by adding at the end the following new sub5 sections:

6 ‘‘(b) MICROENTERPRISE LOANS.—

7 ‘‘(1) TREATMENT OF LOANS AND GRANTS.—

8 The following amounts shall be treated as an invest9 ment in a regulated financial institution’s commu10 nity for purposes of subsection (a):

11 ‘‘(A) The amount of any loan described in

12 paragraph (2)(A) made by the regulated finan13 cial institution directly to a microenterprise, if

14 the loan is made in accordance with the require15 ments of subsection (c).

16 ‘‘(B) The amount of any grant or donation

17 made by the regulated financial institution to

18 any microenterprise intermediary to meet oper19 ating costs of the intermediary, including the

20 costs associated with training, technical assist21 ance, and other support services provided by

22 the intermediary to microenterprises.

23 ‘‘(C) The amount of any regulated finan24 cial institution’s investment in a revolving fund

25 established by the institution for loans to
123

•HR 2790 IH

1 microenterprise intermediaries for lending to

2 microenterprises if—

3 ‘‘(i) the amount of the investment in

4 the revolving fund is equal to or greater

5 than the amount which is equal to 0.05

6 percent of the assets of the institution;

7 ‘‘(ii) the regulated financial institu8 tion—

9 ‘‘(I) makes grants or donations

10 described in subparagraph (B) to

11 microenterprise intermediaries the

12 total amount of which equals or ex13 ceeds the amount which is equal to 15

14 percent of the amount required to be

15 invested in the revolving fund under

16 clause (i); or

17 ‘‘(II) provides financial services,

18 including the establishment and main19 tenance of a transaction account, for

20 a microenterprise (or any individual

21 who controls the microenterprise) who

22 receives a microenterprise loan from a

23 microenterprise intermediary, at pref24 erential or reduced rates which are

25 at least as favorable to the
124

•HR 2790 IH

1 microenterprise as the rates offered

2 for such services to the institution’s

3 most preferred commercial customers;

4 and

5 ‘‘(iii) loans from the revolving fund

6 may be made only to microenterprise

7 intermediaries who agree to use the pro8 ceeds of the loan to make microenterprise

9 loans in accordance with the requirements

10 of subsection (c).

11 ‘‘(2) MICROENTERPRISE LOAN.—For purposes

12 of this subsection and subsection (c), the term

13 ‘microenterprise loan’—

14 ‘‘(A) means a loan—

15 ‘‘(i) to a commercial enterprise with 5

16 or fewer employees, 1 or more of whom

17 own the enterprise;

18 ‘‘(ii) in amounts not less than $100

19 and not more than $10,000;

20 ‘‘(iii) the interest rate on which is

21 comparable to the interest rate charged on

22 secured commercial loans offered by the

23 regulated financial institution to the insti24 tution’s most preferred commercial cus25 tomers;
125

•HR 2790 IH

1 ‘‘(iv) which—

2 ‘‘(I) is not secured by collateral;

3 or

4 ‘‘(II) is secured by collateral the

5 value of which, as a percentage of the

6 amount of the loan, is substantially

7 less than the percentage generally re8 quired by the institution for commer9 cial loans; and

10 ‘‘(v) the terms of which may permit

11 the deferral of principal or interest pay12 ments otherwise due under such terms;

13 and

14 ‘‘(B) includes a loan to a microenterprise

15 intermediary the proceeds of which will be used

16 by the intermediary for making loans described

17 in subparagraph (A).

18 ‘‘(c) CRITERIA FOR MICROENTERPRISE LOANS.—

19 ‘‘(1) IN GENERAL.—A microenterprise loan

20 meets the requirements of this subsection if the loan

21 is made in accordance with the following criteria:

22 ‘‘(A) In considering any loan to a

23 microenterprise, the lender takes into account—

24 ‘‘(i) the creditworthiness of any per25 son who controls the microenterprise in
126

•HR 2790 IH

1 lieu of the creditworthiness of the enter2 prise;

3 ‘‘(ii) in the case of a microenterprise

4 which is a startup business, whether the

5 microenterprise is soundly conceived; and

6 ‘‘(iii) the need of the microenterprise

7 for expansion capital.

8 ‘‘(B) The lender accepts as collateral for

9 the loan a security interest in any personal

10 property of any person who controls the

11 microenterprise which consists of consumer or

12 household goods.

13 ‘‘(C) The lender does not require collateral

14 or a secured interest for more than 50 percent

15 of the face amount of the loan.

16 ‘‘(D) The loans are made in amounts not

17 less than $100 and not more than $10,000 to

18 persons who would not otherwise qualify for a

19 commercial loan.

20 ‘‘(E) The lender provides technical assist21 ance, training, and counseling in business prac22 tices, such as accounting, marketing, manage23 ment, sales, financial practices, and general

24 business practices, and closely monitors the

25 microenterprise during the period the loan is
127

•HR 2790 IH

1 outstanding, including the enterprise’s loan re2 payment performance.

3 ‘‘(2) LENDER DEFINED.—For purposes of

4 paragraph (1), the term ‘lender’ means—

5 ‘‘(A) in the case of a microenterprise loan

6 by a regulated financial institution to a

7 microenterprise, the regulated financial institu8 tion; and

9 ‘‘(B) in the case of a microenterprise loan

10 by a microenterprise intermediary to a

11 microenterprise, the microenterprise inter12 mediary.’’.

13 (b) CLERICAL AMENDMENT.—Section 804 of the

14 Community Reinvestment Act of 1977 (12 U.S.C. 2903)

15 is amended by inserting before subsection (a) (as so des16 ignated by subsection (a)(1) of this section) the following

17 new heading:

18 ‘‘SEC. 804. ASSESSMENT OF RECORD OF MEETING COMMU19 NITY CREDIT NEEDS.’’.

20 SEC. 215. TREATMENT OF MICROENTERPRISE LOANS OF

21 SAVINGS ASSOCIATIONS AS QUALIFIED

22 THRIFT INVESTMENTS.

23 (a) IN GENERAL.—Section 10(m)(4)(C)(ii) of the

24 Home Owners’ Loan Act (12 U.S.C. 1467a(m)(4)(C)(ii))
128

•HR 2790 IH

1 is amended by adding at the end the following new

2 subclause:

3 ‘‘(VII) The aggregate amount of

4 microenterprise loans held by the sav5 ings association.’’.

6 (b) MICROENTERPRISE LOAN DEFINED.—Section

7 10(m)(4) of the Home Owners’ Loan Act (12 U.S.C.

8 1467a(m)(4)) is amended by adding at the end the follow9 ing new subparagraph:

10 ‘‘(D) MICROENTERPRISE LOAN.—For pur11 poses of this paragraph, the term

12 ‘microenterprise loan’—

13 ‘‘(i) means a loan—

14 ‘‘(I) to a commercial enterprise

15 with 5 or fewer employees, 1 or more

16 of whom own the enterprise;

17 ‘‘(II) in amounts not less than

18 $100 and not more than $10,000; and

19 ‘‘(III) the interest rate on which

20 is comparable to the interest rate

21 charged on secured commercial loans

22 offered by the savings association to

23 the association’s most preferred com24 mercial customers;
129

•HR 2790 IH

1 ‘‘(IV) which is not secured by

2 collateral or is secured by collateral

3 the value of which, as a percentage of

4 the amount of the loan, is substan5 tially less than the percentage gen6 erally required by the institution for

7 commercial loans; and

8 ‘‘(V) the terms of which may per9 mit the deferral of principal or inter10 est payments otherwise due under

11 such terms;

12 ‘‘(ii) includes a loan to a

13 microenterprise intermediary the proceeds

14 of which will be used by the intermediary

15 for making loans described in clause (i);

16 and

17 ‘‘(iii) does not include—

18 ‘‘(I) any loan to a micro19 enterprise which does not meet the re20 quirements of paragraph (8); or

21 ‘‘(II) any loan to a micro22 enterprise intermediary which does

23 not agree to use the proceeds of the

24 loan to make microenterprise loans in
130

•HR 2790 IH

1 accordance with the requirements of

2 paragraph (8).’’.

3 (c) CRITERIA FOR MICROENTERPRISE LOANS.—Sec4 tion 10(m) of the Home Owners’ Loan Act (12 U.S.C.

5 1467a(m)) is amended by adding at the end the following

6 new paragraph:

7 ‘‘(8) CRITERIA FOR MICROENTERPRISE

8 LOANS.—

9 ‘‘(A) IN GENERAL.—A microenterprise

10 loan meets the requirements of this paragraph

11 only if the savings association makes the

12 microenterprise loan, or the microenterprise

13 intermediary which receives a loan from the as14 sociation, agrees to use the proceeds of the loan

15 to make microenterprise loans in accordance

16 with the following criteria:

17 ‘‘(i) In considering any loan to a

18 microenterprise, the lender takes into ac19 count—

20 ‘‘(I) the creditworthiness of any

21 person who controls the

22 microenterprise in lieu of the credit23 worthiness of the enterprise;

24 ‘‘(II) in the case of a

25 microenterprise which is a startup
131

•HR 2790 IH

1 business, whether the microenterprise

2 is soundly conceived; and

3 ‘‘(III) the need of the

4 microenterprise for expansion capital.

5 ‘‘(ii) The lender accepts as collateral

6 for the loan a security interest in any per7 sonal property of any person who controls

8 the microenterprise which consists of

9 consumer or household goods.

10 ‘‘(iii) The lender does not require col11 lateral or a secured interest for more than

12 50 percent of the face amount of the loan.

13 ‘‘(iv) The loans are made in amounts

14 not less than $100 and not more than

15 $10,000 to persons who would not other16 wise qualify for a commercial loan.

17 ‘‘(v) The lender provides technical as18 sistance, training, and counseling in busi19 ness practices, such as accounting, market20 ing, management, financial practices, and

21 general business practices and sales, to the

22 microenterprise in connection with the loan

23 and closely monitors the microenterprise,

24 including the enterprise’s loan repayment

25 performance.
132

•HR 2790 IH

1 ‘‘(B) LENDER DEFINED.—For purposes of

2 subparagraph (A), the term ‘lender’ means—

3 ‘‘(i) in the case of a microenterprise

4 loan by a savings association to a

5 microenterprise, the savings association;

6 and

7 ‘‘(ii) in the case of a microenterprise

8 loan by a microenterprise intermediary to

9 a microenterprise, the microenterprise

10 intermediary.’’.

11 SEC. 216. USE OF CDBG ASSISTANCE FOR ADMINISTRATIVE

12 COSTS OF ENTITIES ASSISTING

13 MICROENTERPRISES.

14 Section 105(a)(23) of the Housing and Community

15 Development Act of 1974 (42 U.S.C. 5305(a)(23)) is

16 amended by adding at the end the following flush material:

17 ‘‘assistance provided to such entities under this

18 paragraph may be used for reasonable administra19 tive and operating costs of such entities related to

20 facilitating economic development through activities

21 under subparagraphs (A) through (C);’’.

22 SEC. 217. ESTABLISHMENT OF MICROENTERPRISE DIVI23 SION IN EACH FEDERAL BANKING AGENCY.

24 (a) IN GENERAL.—Each Federal banking agency (as

25 defined in section 3(z) of the Federal Deposit Insurance
133

•HR 2790 IH

1 Act) shall establish a division to be known as the

2 ‘‘Microenterprise Technical and Operations Office’’ to pro3 mote microenterprises by offering technical assistance,

4 training, outreach, and other support to groups and indi5 viduals engaged in, or desiring to establish, a

6 microenterprise or an institution which offers credit or fi7 nancial services to microenterprises.

8 (b) DUTIES OF MICROENTERPRISE DIVISION.—The

9 Microenterprise Technical and Operations Office of each

10 Federal banking agency shall—

11 (1) facilitate the creation and financing of

12 microenterprises by—

13 (A) collecting information relating to

14 microenterprises, including the ownership char15 acteristics of microenterprises and the perform16 ance of microenterprises by industry;

17 (B) providing such information without

18 charge to interested persons; and

19 (C) generally serving as a clearinghouse

20 for information relating to microenterprises;

21 and

22 (2) monitor and provide assistance to the

23 microenterprise divisions established pursuant to

24 section 34 of the Federal Deposit Insurance Act.
134

•HR 2790 IH

1 (c) MICROENTERPRISE DEFINED.—As used in this

2 section, the term ‘‘microenterprise’’ means any commer3 cial enterprise with 5 or fewer employees, 1 or more of

4 whom own the enterprise.

5 SEC. 218. STUDY.

6 (a) AVAILABILITY OF CREDIT FOR SMALL BUSI7 NESSES WHICH ARE LARGER THAN

8 MICROENTERPRISES.—The Financial Institutions Exam9 ination Council shall conduct a study before the end of

10 the 2-year period beginning on the date of the enactment

11 of this Act, based on the agency’s experience in admin12 istering the microenterprise loan provisions of this Act,

13 and the amendments made by this Act, on the best means

14 to make credit available for small businesses which—

15 (1) do not qualify for microenterprise loans or

16 need credit in larger amounts than is available

17 through microenterprise loans; and

18 (2) need credit in smaller amounts than is gen19 erally available from financial institutions or the

20 Small Business Administration.

21 (b) RECOMMENDATIONS AND REPORT.—The Finan22 cial Institutions Examination Council shall submit a re23 port to the Congress before the end of the 2-year period

24 referred to in subsection (a) containing the findings and

25 conclusions of the agency in connection with the study
135

•HR 2790 IH

1 conducted pursuant to subsection (a) and such rec2 ommendations for legislative and administrative action as

3 the agency may determine to be appropriate.

4 Subtitle C—Equal Surety Bond

5 Opportunity Act

6 SEC. 221. SHORT TITLE.

7 This subtitle may be cited as the ‘‘Equal Surety Bond

8 Opportunity Act’’.

9 SEC. 222. EQUAL SURETY BOND OPPORTUNITY REQUIRE10 MENTS.

11 (a) ACTIVITIES CONSTITUTING DISCRIMINATION.—It

12 shall be unlawful for any surety to discriminate against

13 any applicant, with respect to any aspect of a surety bond

14 transaction—

15 (1) on the basis of race, color, religion, national

16 origin, sex, marital status, sexual orientation, dis17 ability, or age (if the applicant has the capacity to

18 contract);

19 (2) because the applicant has in good faith ex20 ercised any right under this Act;

21 (3) because the applicant previously obtained a

22 bond through an individual or personal surety; or

23 (4) because the applicant previously obtained a

24 bond through—
136

•HR 2790 IH

1 (A) any bonding assistance program ex2 pressly authorized by law;

3 (B) any bonding assistance program ad4 ministered by a nonprofit organization for its

5 members or an economically disadvantaged

6 class of persons; or

7 (C) any special purpose bonding program

8 offered by a profit-making organization to meet

9 special needs.

10 (b) ACTIVITIES NOT CONSTITUTING DISCRIMINA11 TION.—It shall not constitute discrimination for purposes

12 of this Act for a surety—

13 (1) to make an inquiry of marital status if such

14 inquiry is for the purpose of ascertaining the sure15 ty’s rights and remedies applicable to the granting

16 of a bond and not to discriminate in a determination

17 of bondability;

18 (2) to make an inquiry of the applicant’s age if

19 such inquiry is for the purpose of determining the

20 amount and probable continuance of bondability; or

21 (3) to make an inquiry as to where the appli22 cant has previously obtained a bond, in order to de23 termine bonding history, or other pertinent element

24 of bondability, except that an applicant may not be
137

•HR 2790 IH

1 assigned a negative factor or value because the ap2 plicant previously obtained a bond through—

3 (A) an individual or personal surety;

4 (B) a bonding assistance program ex5 pressly authorized by law;

6 (C) any bonding program administered by

7 a nonprofit organization for its members or an

8 economically disadvantaged class of persons; or

9 (D) any special purpose bonding program

10 offered by a profit-making organization to meet

11 special needs.

12 (c) ADDITIONAL ACTIVITIES NOT CONSTITUTING

13 DISCRIMINATION.—It is not a violation of this Act for a

14 surety to refuse to issue a bond pursuant to—

15 (1) any bonding assistance program authorized

16 by law for an economically disadvantaged class of

17 persons;

18 (2) any bonding assistance program adminis19 tered by a nonprofit organization for its members or

20 an economically disadvantaged class of persons; or

21 (3) any special purpose bonding program of22 fered by a profit-making organization to meet special

23 needs;

24 if such refusal is required by or made pursuant to such

25 program.
138

•HR 2790 IH

1 (d) REASONS FOR ADVERSE ACTION; PROCEDURE

2 APPLICABLE; DEFINITION.—

3 (1) NOTICE REQUIRED.—

4 (A) IN GENERAL.—Except as provided in

5 subparagraph (B), any surety approved under

6 section 9304 of title 31, United States Code,

7 shall notify an applicant of the surety’s action

8 on a completed application before the end of the

9 10-day period beginning on the date the appli10 cation is filed with the surety.

11 (B) EXTENSION.—The 10-day period re12 ferred to in subparagraph (A) may be extended

13 an additional 10 days if the surety has not is14 sued a bond to the applicant during the 1-year

15 period ending on the date the application is

16 filed with the surety.

17 (2) STATEMENT OF REASONS.—

18 (A) IN GENERAL.—Each applicant against

19 whom adverse action is taken shall be entitled

20 to a statement of reasons for such action from

21 the surety.

22 (B) ACCEPTABLE FORMS OF STATE23 MENT.—A surety satisfies the requirement es24 tablished under subparagraph (A) by—
139

•HR 2790 IH

1 (i) providing a statement of reasons in

2 writing as a matter of course to applicants

3 against whom adverse action is taken; or

4 (ii) giving written notification of ad5 verse action which discloses—

6 (I) the applicant’s right to a

7 statement of reasons within 30 days

8 after receipt by the surety of a re9 quest made within 60 days after such

10 notification; and

11 (II) the identity of the person or

12 office from which such statement may

13 be obtained.

14 (C) ORAL STATEMENT PERMITTED.—Such

15 statement may be given orally if the written no16 tification advises the applicant of the appli17 cant’s right to have the statement of reasons

18 confirmed in writing on written request.

19 (3) SPECIFICITY OF REASONS.—A statement of

20 reasons meets the requirements of this Act only if

21 it contains specific reasons for the adverse action

22 taken.

23 (4) APPLICABILITY IN CASE OF 3D PARTY AP24 PLICATIONS.—In the case of a request to a surety

25 by a third party to issue a bond directly or indirectly
140

•HR 2790 IH

1 to an applicant, the notification and statement of

2 reasons required by this section may be made di3 rectly by such surety, or indirectly through the third

4 party, if the identity of the surety is disclosed to the

5 applicant.

6 (5) APPLICABILITY IN CASE OF SURETIES

7 WHICH ACCEPT FEW APPLICATIONS.—The require8 ments of paragraph (2), (3), or (4) may be satisfied

9 by oral statements or notifications in the case of any

10 surety who did not act on more than 100 applica11 tions during the calendar year in which the adverse

12 action is taken.

13 (e) ADVERSE ACTION DEFINED.—For purposes of

14 this Act, the term ‘‘adverse action’’—

15 (1) means a denial of a bond, a change in the

16 terms of an existing bonding arrangement, or a re17 fusal to issue a bond in the amount or on substan18 tially the terms requested; and

19 (2) does not include any refusal to issue an ad20 ditional bond under an existing bonding arrange21 ment where the applicant is in default, or where

22 such additional bond would exceed a previously es23 tablished bonding limit.
141

•HR 2790 IH

1 SEC. 223. CIVIL LIABILITY.

2 (a) DAMAGES.—Any surety who fails to comply with

3 section 222(a) shall be liable to the aggrieved applicant

4 for—

5 (1) any actual damage sustained by such appli6 cant (individually or as a member of a class); and

7 (2) in the case of any successful action under

8 this section, the costs of the action, together with

9 reasonable attorney’s fees as determined by the

10 court.

11 (b) EQUITABLE RELIEF.—Upon application by an

12 aggrieved applicant, a court of competent jurisdiction may

13 enjoin a surety from violating the requirements of this Act

14 or grant such other equitable relief as the court deter15 mines to be appropriate to enforce such requirements.

16 (c) JURISDICTION.—Any action under this section

17 may be brought in any United States district court, or

18 in any other court of competent jurisdiction, within 1 year

19 after the date of the occurrence of the violation involved.

20 SEC. 224. ADMINISTRATIVE ENFORCEMENT.

21 (a) IN GENERAL.—A company may not be approved

22 as a surety by the Secretary of the Treasury under section

23 9304 of title 31, United States Code, or provide any surety

24 bond pursuant to such section unless such company main25 tains full compliance with the requirements of this Act.
142

•HR 2790 IH

1 (b) REQUIREMENTS RELATING TO ENFORCEABILITY

2 OF ACT.—

3 (1) SIGNED STATEMENT OF COMPLIANCE WITH

4 APPLICATION.—Section 9305(a) of title 31, United

5 States Code, is amended—

6 (A) by striking ‘‘and’’ at the end of para7 graph (1);

8 (B) by striking the period at the end of

9 paragraph (2) and inserting ‘‘; and’’; and

10 (C) by adding at the end the following new

11 paragraph:

12 ‘‘(3) a statement of compliance with the Equal

13 Surety Bond Opportunity Act which is signed under

14 penalty of perjury by the president and the secretary

15 of the corporation.’’.

16 (2) COMPLIANCE AS A CONDITION FOR AP17 PROVAL OF APPLICATION.—Section 9305(b) of title

18 31, United States Code, is amended—

19 (A) by striking ‘‘and’’ at the end of para20 graph (2);

21 (B) by striking the period at the end of

22 paragraph (3) and inserting ‘‘; and’’; and

23 (C) by adding at the end the following new

24 paragraph:
143

•HR 2790 IH

1 ‘‘(4) the corporation is in full compliance with

2 the Equal Surety Bond Opportunity Act.’’.

3 (3) SIGNED STATEMENT OF COMPLIANCE WITH

4 QUARTERLY REPORTS.—Section 9305(c) of title 31,

5 United States Code, is amended by inserting ‘‘and a

6 statement of compliance with the Equal Surety

7 Bond Opportunity Act’’ before the period.

8 (4) ENFORCEMENT AUTHORITY OF SECRETARY

9 OF THE TREASURY.—Section 9305(d) of title 31,

10 United States Code, is amended—

11 (A) in paragraph (1), by inserting ‘‘or the

12 provisions of the Equal Surety Bond Oppor13 tunity Act’’ before the semicolon;

14 (B) by striking ‘‘and’’ at the end of para15 graph (2);

16 (C) by striking the period at the end of

17 paragraph (3) and inserting ‘‘; and’’; and

18 (D) by adding at the end the following new

19 paragraph:

20 ‘‘(4) may, after the end of the 1-year period be21 ginning on the effective date of any revocation under

22 paragraph (1) of the authority of a surety corpora23 tion for noncompliance with the Equal Surety Bond

24 Opportunity Act, reauthorize such corporation to

25 provide surety bonds under section 9304.’’.
144

•HR 2790 IH

1 (5) REVOCATION FOR FAILURE TO PAY CER2 TAIN JUDGMENTS.—Section 9305(e) of title 31,

3 United States Code, is amended—

4 (A) by striking ‘‘and’’ at the end of para5 graph (1);

6 (B) by redesignating paragraph (2) as

7 paragraph (3); and

8 (C) by inserting after paragraph (1) the

9 following new paragraph:

10 ‘‘(2) the corporation does not pay a final judg11 ment or order against the corporation for noncompli12 ance with the Equal Surety Bond Opportunity Act

13 or fails to comply with any order under section 3(c)

14 of such Act;’’.

15 (c) TECHNICAL AND CONFORMING AMENDMENT.—

16 Section 9304(a)(3) of title 31, United States Code, is

17 amended by inserting ‘‘and section 4(a) of the Equal Sur18 ety Bond Opportunity Act’’ before the period.

19 (d) REGULATIONS.—

20 (1) IN GENERAL.—The Secretary of the Treas21 ury shall prescribe such regulations as may be nec22 essary to carry out the purposes of this Act.

23 (2) INITIAL REGULATIONS.—The initial regula24 tions prescribed pursuant to paragraph (1) shall

25 take effect at the earliest practicable date after the
145

•HR 2790 IH

1 date of the enactment of this Act and not later than

2 the end of the 1-year period beginning on such date

3 of enactment.

4 SEC. 225. EFFECTIVE DATE.

5 Sections 222(d) and 224(a) shall take effect on the

6 earlier of—

7 (1) the effective date of the initial regulations

8 prescribed pursuant to section 224(d); or

9 (2) the end of the 1-year period beginning on

10 the date of the enactment of this Act.

11 Subtitle D—Women and Minorities

12 in Science and Engineering

13 Work Force Act

14 SEC. 231. SHORT TITLE.

15 This subtitle may be cited as the ‘‘Women and Mi16 norities in Science and Engineering Work Force Act’’.

17 SEC. 232. FINDINGS.

18 The Congress finds that—

19 (1) despite a consistently high presence of

20 women in the professional and total work forces of

21 the United States, women continue to be

22 underrepresented in the science and engineering

23 work forces;

24 (2) women scientists and engineers have higher

25 rates of unemployment and underemployment than
146

•HR 2790 IH

1 their male counterparts, although the number of

2 women receiving degrees in scientific and engineer3 ing disciplines has increased since 1981;

4 (3) artificial barriers exist in the recruitment,

5 retention, and advancement of women in the science

6 and engineering work forces;

7 (4) academia, industry, and government are in8 creasingly aware of the necessity of and the advan9 tages derived from diverse science and engineering

10 work forces;

11 (5) initiatives of the White House Task Force

12 on Women, Minorities, and the Handicapped in

13 Science and Technology and of the Federal Coordi14 nating Council on Science, Engineering, and Tech15 nology have been instrumental in raising public

16 awareness of—

17 (A) the underrepresentation of women in

18 the science and engineering work forces; and

19 (B) the desirability of eliminating artificial

20 barriers to the recruitment, retention, and ad21 vancement of women in such work forces; and

22 (6) the establishment of a commission to exam23 ine issues raised by these initiatives would help to—

24 (A) focus greater attention on the impor25 tance of eliminating artificial barriers to the re-
147

•HR 2790 IH

1 cruitment, retention, and advancement of

2 women in the science and engineering work

3 forces and in all employment sectors of the

4 United States;

5 (B) promote work force diversity;

6 (C) sensitize employers to the need to re7 cruit and retain women scientists and engineers

8 in order to overcome projected shortfalls within

9 the science and engineering work forces of the

10 United States during the next 20 years; and

11 (D) encourage the replication of successful

12 recruitment and retention programs by univer13 sities, corporations, and Federal agencies hav14 ing difficulties in employing women scientists

15 and engineers.

16 SEC. 233. ESTABLISHMENT.

17 There is established a commission to be known as the

18 ‘‘Commission on the Advancement of Women in the

19 Science and Engineering Work Forces’’ (hereinafter in

20 this Act referred to as the ‘‘Commission’’).

21 SEC. 234. DUTY OF COMMISSION.

22 The Commission shall conduct a study to—

23 (1) identify the number of women in the United

24 States in the science and engineering work forces,

25 the specific types of occupations in such workforces
148

•HR 2790 IH

1 in which women scientists and engineers are

2 underrepresented;

3 (2) examine the preparedness of women to—

4 (A) pursue careers in the science and engi5 neering work forces; and

6 (B) advance to positions of greater respon7 sibility within academia, industry, and govern8 ment;

9 (3) describe the practices and policies of em10 ployers and labor unions relating to the recruitment,

11 retention, and advancement of women scientists and

12 engineers;

13 (4) identify the opportunities for, and artificial

14 barriers to, the recruitment, retention, and advance15 ment of women scientists and engineers in academia,

16 industry, and government;

17 (5) describe the employment situations in which

18 the recruitment, retention, and advancement of

19 women scientists and engineers are comparable to

20 their male counterparts, and identify those situa21 tions in which such comparability does not exist;

22 (6) compile a synthesis of available research on

23 practices, policies, and programs that have success24 fully led to the recruitment, retention, and advance25 ment of women in the science and engineering work
149

•HR 2790 IH

1 forces, including training programs, rotational as2 signments, developmental programs, reward pro3 grams, employee benefit structures, and family leave

4 policies;

5 (7) examine such other issues and information

6 relating to the advancement of women in the science

7 and engineering work forces as determined by the

8 Commission to be appropriate; and

9 (8) issue recommendations that government (in10 cluding Congress and appropriate Federal agencies),

11 academia, and private industry can follow to assist

12 in the recruitment, retention, and advancement of

13 women in science and engineering.

14 SEC. 235. MEMBERSHIP.

15 (a) NUMBER AND APPOINTMENT.—The Commission

16 shall be composed of 17 members as follows:

17 (1) 5 members appointed by the President.

18 (2) 3 members appointed jointly by the Speaker

19 of the House of Representatives and the majority

20 leader of the Senate.

21 (3) 1 member appointed by the majority leader

22 of the House of Representatives.

23 (4) 1 member appointed by the minority leader

24 of the House of Representatives.
150

•HR 2790 IH

1 (5) 1 member appointed by the majority leader

2 of the Senate.

3 (6) 1 member appointed by the minority leader

4 of the Senate.

5 (7) 2 Members of the House of Representatives,

6 appointed jointly by the majority leader and the mi7 nority leader of the House of Representatives.

8 (8) 2 Senators appointed jointly by the majority

9 leader and the minority leader of the Senate.

10 (9) The Director of the Office of Science and

11 Technology Policy.

12 (b) ADDITIONAL QUALIFICATIONS.—Initial appoint13 ments shall be made under subsection (a) not later than

14 180 days after the date of the enactment of this Act. In

15 making each appointment under subsection (a), the ap16 pointing authority shall consider (among other factors)

17 whether the individual—

18 (1) is a member of an organization representing

19 women and minorities;

20 (2) holds executive management or senior deci21 sion-making positions in any business entity; and

22 (3) possesses academic expertise or other recog23 nized abilities relating to employment and employ24 ment discrimination issues.
151

•HR 2790 IH

(c) POLITICAL AFFILIATION.—Not more than 1 1 ⁄2 of

2 the members appointed from individuals who are officers

3 or employees of the United States may be of the same

4 political party.

5 (d) CONTINUATION OF MEMBERSHIP.—If a member

6 was appointed to the Commission because the member was

7 an officer or employee of any government and later ceases

8 to be such an officer or employee, that member may con9 tinue as a member of the Commission for not longer than

10 the 60-day period beginning on the date the member

11 ceases to be such an officer or employee.

12 (e) TERMS.—

13 (1) IN GENERAL.—Each Member shall be ap14 pointed for the life of the Commission.

15 (2) VACANCIES.—A vacancy in the Commission

16 shall be filled in the manner in which the original

17 appointment was made.

18 (f) BASIC PAY.—

19 (1) RATES OF PAY.—Except as provided in

20 paragraph (2), each member of the Commission

21 shall receive compensation at the daily equivalent of

22 the maximum rate of pay payable under section

23 5376 of title 5, United States Code, for each day the

24 member is engaged in the performance of duties for

25 the Commission, including attendance at meetings
152

•HR 2790 IH

1 and conferences of the Commission, and travel to

2 conduct the duties of the Commission.

3 (2) PROHIBITION OF COMPENSATION OF FED4 ERAL EMPLOYEES.—Members of the Commission

5 who are full-time officers or employees of the United

6 States or Members of Congress may not receive ad7 ditional pay, allowances, or benefits by reason of

8 their service on the Commission.

9 (g) TRAVEL EXPENSES.—Each member shall receive

10 travel expenses, including per diem in lieu of subsistence,

11 in accordance with sections 5702 and 5703 of title 5,

12 United States Code.

13 (h) QUORUM.—A majority of the members of the

14 Commission shall constitute a quorum for the transaction

15 of business.

16 (i) CHAIRPERSON.—The Director of the Office of

17 Science and Technology Policy shall serve as the Chair18 person of the Commission.

19 (j) MEETINGS.—

20 (1) MEETINGS PRIOR TO COMPLETION OF RE21 PORT.—The Commission shall meet not fewer than

22 5 times in connection with and pending the comple23 tion of the reports described in subsections (a) and

24 (b) of section 228. The Commission shall hold addi25 tional meetings for such purpose if the Chairperson
153

•HR 2790 IH

1 or a majority of the members of the Commission re2 quests the additional meetings in writing.

3 (2) MEETINGS AFTER COMPLETION OF RE4 PORT.—The Commission shall meet at least once,

5 but not more than twice after the completion of the

6 report described in section 228(b), in connection

7 with and pending completion of the report required

8 by section 228(c).

9 (k) EMPLOYMENT STATUS.—A member of the Com10 mission, who is not otherwise an officer or employee of

11 the Federal Government, shall not be deemed to be an

12 employee of the Federal Government except for the pur13 poses of—

14 (1) the tort claims provisions of chapter 171 of

15 title 28, United States Code; and

16 (2) subchapter I of chapter 81 of title 5, United

17 States Code, relating to compensation for work

18 injuries.

19 SEC. 236. DIRECTOR AND STAFF OF COMMISSION; EXPERTS

20 AND CONSULTANTS.

21 (a) DIRECTOR.—The Commission shall have a Direc22 tor who shall be appointed by the Chairperson. The Direc23 tor shall be paid at a rate not to exceed the maximum

24 annual rate of basic pay payable under section 5376 of

25 title 5, United States Code.
154

•HR 2790 IH

1 (b) STAFF.—Subject to rules prescribed by the Com2 mission, the Chairperson may appoint and fix the pay of

3 additional personnel as the Chairperson considers appro4 priate.

5 (c) APPLICABILITY OF CERTAIN CIVIL SERVICE

6 LAWS.—The Director and staff of the Commission may

7 be appointed without regard to the provisions of title 5,

8 United States Code, governing appointments in the com9 petitive service, and may be paid without regard to the

10 provisions of chapter 51 and subchapter III of chapter 53

11 of that title relating to classification and General Schedule

12 pay rates, except that an individual so appointed may not

13 receive pay in excess of the maximum annual rate of basic

14 pay payable under section 5376 of title 5, United States

15 Code.

16 (d) EXPERTS AND CONSULTANTS.—The Commission

17 may procure temporary and intermittent services under

18 section 3109(b) of title 5, United States Code, at rates

19 for individuals not to exceed the maximum annual rate

20 of basic pay payable under section 5376 of title 5, United

21 States Code.

22 (e) STAFF OF FEDERAL AGENCIES.—Upon request

23 of the Commission, the head of any Federal department

24 or agency may detail, on a reimbursable basis, any of the
155

•HR 2790 IH

1 personnel of that department or agency to the Commission

2 to assist it in carrying out its duties under this Act.

3 SEC. 237. POWERS OF COMMISSION.

4 (a) HEARINGS AND SESSIONS.—The Commission

5 may, for the purpose of carrying out this Act, hold hear6 ings, sit and act at times and places, take testimony, and

7 receive evidence as the Commission considers appropriate.

8 The Commission may administer oaths or affirmations to

9 witnesses appearing before it.

10 (b) POWERS OF MEMBERS AND AGENTS.—Any mem11 ber or agent of the Commission may, if authorized by the

12 Commission, take any action which the Commission is au13 thorized to take by this section.

14 (c) OBTAINING OFFICIAL DATA.—The Commission

15 may secure directly from any department or agency of the

16 United States information necessary to enable it to carry

17 out this Act. Upon request of the Chairperson of the Com18 mission, the head of that department or agency shall fur19 nish that information to the Commission.

20 (d) GIFTS, BEQUESTS, AND DEVISES.—The Commis21 sion may accept, use, and dispose of gifts, bequests, or

22 devises of services or property, both real and personal, for

23 the purpose of aiding or facilitating the work of the Com24 mission. Gifts, bequests, or devises of money and proceeds

25 from sales of other property received as gifts, bequests,
156

•HR 2790 IH

1 or devises shall be deposited in the Treasury and shall be

2 available for disbursement upon order of the Commission.

3 (e) MAILS.—The Commission may use the United

4 States mails in the same manner and under the same con5 ditions as other departments and agencies of the United

6 States.

7 (f) ADMINISTRATIVE SUPPORT SERVICES.—Upon the

8 request of the Commission, the Administrator of General

9 Services shall provide to the Commission, on a reimburs10 able basis, the administrative support services necessary

11 for the Commission to carry out its responsibilities under

12 this Act.

13 (g) CONTRACT AUTHORITY.—To the extent provided

14 in advance in appropriations Acts, the Commission may

15 contract with and compensate government and private

16 agencies or persons for the purpose of conducting research

17 or surveys necessary to enable the Commission to carry

18 out its duties under this Act.

19 SEC. 238. REPORTS.

20 (a) STATUS REPORT.—Not later than 1 year after

21 the date on which the initial appointments under section

22 235(a) are completed, the Commission shall submit to the

23 President and the Congress a written report describing the

24 current activities and findings of the Commission and the

25 direction of the Commission.
157

•HR 2790 IH

1 (b) RECOMMENDATION REPORT.—Not later than 18

2 months after the date on which the initial appointments

3 under section 235(a) are completed, the Commission shall

4 submit to the President and the Congress a written report

5 containing—

6 (1) the findings and conclusions of the Commis7 sion resulting from the study conducted under sec8 tion 234; and

9 (2) recommendations, including specific pro10 posed legislation and administrative action, based on

11 the findings and conclusions referred to in para12 graph (1).

13 (c) FOLLOW-UP REPORT.—After submission of the

14 report required by subsection (b) and before the termi15 nation of the Commission, the Commission shall submit

16 to the President and to the Congress a written report—

17 (1) identifying which of the recommendations

18 included in such report have been implemented; and

19 (2) containing any additional information the

20 Commission considers to be appropriate.

21 SEC. 239. TERMINATION.

22 The Commission shall terminate 1 year after submit23 ting the report required by section 238(b).
158

•HR 2790 IH

1 SEC. 239A. AUTHORIZATION OF APPROPRIATIONS.

2 There are authorized to be appropriated for fiscal

3 years 1995, 1996, and 1997 such sums as may be nec4 essary to carry out this Act.

5 Subtitle E—Job Training Self6 Sufficiency Act

7 SEC. 241. SHORT TITLE.

8 This subtitle may be cited as the ‘‘Self-Sufficiency

9 Standard Act’’.

10 SEC. 242. FINDINGS AND PURPOSE.

11 (a) FINDINGS.—The Congress finds that—

12 (1) the principle objective of programs under

13 part A of title II of the Job Training Partnership

14 Act (29 U.S.C. 1601 et seq.) is to move economically

15 disadvantaged adults into permanent, unsubsidized

16 employment that pays a wage that enables such

17 adults to achieve long-term economic self-sufficiency

18 for themselves and their dependents;

19 (2) current measures of success of such pro20 grams do not accurately assess the degree to which

21 participants achieve long-term economic self-suffi22 ciency;

23 (3) in order to ensure that such programs re24 sult in long-term economic self-sufficiency for par25 ticipants, performance standards must focus both on

26 the wage and benefits a participant receives relative
159

•HR 2790 IH

1 to the participant’s family size and needs, and on

2 the duration and stability of the participant’s em3 ployment; and

4 (4) the wage and benefits needed to achieve

5 long-term economic self-sufficiency will vary by fam6 ily size and local market conditions governing prices

7 of essential goods and services.

8 (b) PURPOSES.—The purposes of this Act are—

9 (1) to provide for the establishment and use of

10 local economic self-sufficiency standards tables to ac11 curately measure the effectiveness of adult training

12 programs carried out under part A of title II of the

13 Job Training Partnership Act (29 U.S.C. 1601 et

14 seq.); and

15 (2) to provide grants to States to develop dem16 onstration and exemplary programs to increase the

17 number of participants under such programs who

18 are trained and placed in jobs that yield long-term

19 economic self-sufficiency using the local economic

20 self-sufficiency standards tables.

21 SEC. 243. DEFINITION OF ECONOMIC SELF-SUFFICIENCY.

22 Section 4 of the Job Training Partnership Act (29

23 U.S.C. 1503) is amended by adding at the end the follow24 ing new paragraph:
160

•HR 2790 IH

1 ‘‘(41) The term ‘economic self-sufficiency’

2 means the ability of an individual to meet the follow3 ing basic needs for the individual and such individ4 ual’s family:

5 ‘‘(A) Housing.

6 ‘‘(B) Child care.

7 ‘‘(C) Adult dependent care.

8 ‘‘(D) Food.

9 ‘‘(E) Transportation.

10 ‘‘(F) Health care.

11 ‘‘(G) Work-related expenses.’’.

12 SEC. 244. ESTABLISHMENT OF ECONOMIC SELF-SUFFI13 CIENCY STANDARDS FOR ADULT TRAINING

14 PROGRAMS.

15 (a) IN GENERAL.—Section 106(b) of such Act (29

16 U.S.C. 1516(b)) is amended by adding at the end the fol17 lowing new paragraph:

18 ‘‘(9) ECONOMIC SELF-SUFFICIENCY STANDARDS

19 FOR ADULT PROGRAMS.—

20 ‘‘(A) FORMULA DEVELOPED BY THE SEC21 RETARY.—(i)(I) Not later than 6 months after

22 the date of the enactment of this paragraph,

23 the Secretary shall develop and publish in the

24 Federal Register a proposed formula which

25 measures the minimum amount of wages and
161

•HR 2790 IH

1 employment benefits that a participant enrolled

2 in a program under part A of title II should re3 ceive after termination from such program to

4 ensure the long-term economic self-sufficiency

5 of such participant.

6 ‘‘(II) The Secretary shall provide for public

7 review and comment of the proposed formula

8 described in subclause (I) within the 60-day pe9 riod beginning on the date such formula is pub10 lished in the Federal Register. Not later than

11 4 months after the end of such 60-day period,

12 the Secretary shall develop and publish in the

13 Federal Register a final formula.

14 ‘‘(ii) The Secretary shall base the formula

15 described in clause (i) on appropriate factors,

16 which shall include—

17 ‘‘(I) the participant’s family size and

18 composition, including the number and age

19 of dependent adults and children;

20 ‘‘(II) 100 percent of the average hous21 ing costs, which shall be based on the fair

22 market rental in effect for the market area

23 in which the participant resides, as estab24 lished by the Secretary of Housing and

25 Urban Development pursuant to section
162

•HR 2790 IH

1 8(c) of the United States Housing Act of

2 1937;

3 ‘‘(III) 100 percent of the average

4 child care costs (differentiated by the age

5 of each child), which may be based on the

6 actual cost of such care established under

7 section 402(g)(1)(C)(i)(I) the Social Secu8 rity Act or the applicable local market rate

9 established under clause (ii) of such sec10 tion;

11 ‘‘(IV) 100 percent of the average

12 adult dependent care costs, which may be

13 based on local surveys or the local average

14 of such costs;

15 ‘‘(V) 100 percent of the average

16 health care costs, which shall include costs

17 incurred for full family health care cov18 erage (including premiums, deductibles,

19 and co-payments), and which may be based

20 on local surveys or the local average of

21 such costs;

22 ‘‘(VI) 100 percent of the average

23 transportation costs, which may be based

24 on local surveys or the local average of

25 such costs;
163

•HR 2790 IH

1 ‘‘(VII) 100 percent of the food costs,

which shall be equal to 1 2 ⁄3 of the official

3 poverty line (as defined by the Office of

4 Management and Budget, and revised an5 nually in accordance with section 673(2) of

6 the Omnibus Budget Reconciliation Act of

7 1981 (42 U.S.C. 9902(2)); and

8 ‘‘(VIII) 100 percent of the average

9 work-related costs, which shall include the

10 cost of uniforms, tools, and other appro11 priate work-related costs.

12 ‘‘(iii) The Secretary shall also designate,

13 from among the needs identified through the

14 needs assessment conducted under this Act,

15 those needs which shall be used by a service de16 livery area to develop the summary needs table

17 under section 104(b)(14)(B).

18 ‘‘(B) LOCAL ECONOMIC SELF-SUFFICIENCY

19 STANDARDS TABLES DEVELOPED BY SERVICE

20 DELIVERY AREAS.—(i) Not later than 12

21 months after the date on which the Secretary

22 publishes the final formula in the Federal Reg23 ister under subparagraph (A)(i)(II), each serv24 ice delivery area shall, in accordance with such

25 formula, develop and submit to the Governor a
164

•HR 2790 IH

1 local economic self-sufficiency standards table

2 which measures the minimum amount of wages

3 and employment benefits that a participant en4 rolled in a program under part A of title II in

5 such area should receive after termination from

6 such program to ensure the long-term economic

7 self-sufficiency of such participant.

8 ‘‘(ii) The Secretary shall provide technical

9 assistance to States and service delivery areas

10 for the purpose of assisting such service deliv11 ery areas to develop the local economic self-suf12 ficiency standards tables under clause (i).

13 ‘‘(C) APPROVAL AND DISAPPROVAL OF

14 TABLE.—(i) Not later than 30 days after the

15 date on which the Governor receives a local eco16 nomic self-sufficiency standards table submitted

17 by a service delivery area under subparagraph

18 (B)(i), the Governor shall review such table and

19 approve or disapprove such table in accordance

20 with this subparagraph.

21 ‘‘(ii) The Governor shall approve each local

22 economic self-sufficiency standards table only

23 if—

24 ‘‘(I) such table accounts for the full

25 range of variations of family size and com-
165

•HR 2790 IH

1 position described in subclause (I) of sub2 paragraph (A)(ii);

3 ‘‘(II) such table accounts for 100 per4 cent of each of the costs described in

5 subclauses (II) through (VIII) of subpara6 graph (A)(ii);

7 ‘‘(III) the methodology used to deter8 mine such costs accurately represent such

9 costs; and

10 ‘‘(IV) such table complies with all

11 other provisions of the formula developed

12 by the Secretary under subparagraph (A).

13 ‘‘(iii) If the Governor determines that the

14 table does not meet the requirements of clause

15 (ii) or is otherwise incomplete or unsatisfactory,

16 the Governor shall, before the end of the period

17 referred to in clause (i)—

18 ‘‘(I) notify the service delivery area of

19 the reasons for the failure to approve the

20 table;

21 ‘‘(II) notify the service delivery area

22 that the table may be resubmitted during

23 the period referred to in subclause (III);

24 and
166

•HR 2790 IH

1 ‘‘(III) permit the service delivery area

2 to resubmit a corrected or amended table

3 during the 30-day period beginning on no4 tification under this clause.

5 ‘‘(iv) The Governor shall review and ap6 prove or disapprove any table resubmitted

7 under clause (iii) beginning before the expira8 tion of the 30-day period beginning upon such

9 resubmission.

10 ‘‘(D) ANNUAL UPDATES.—Each service de11 livery area shall update the local economic self12 sufficiency standards table developed by such

13 area on an annual basis and shall submit to the

14 Governor a description of the updated version

15 of such table.’’.

16 (b) CONFORMING AMENDMENT.—Paragraph (3) of

17 section 106(b) of such Act (29 U.S.C. 1516(b)(3)) is

18 amended by striking ‘‘The Secretary’’ and inserting ‘‘In

19 addition to the standards under local economic self-suffi20 ciency standards tables developed pursuant to paragraph

21 (9), the Secretary’’.
167

•HR 2790 IH

1 SEC. 245. PROHIBITION OF INCENTIVE GRANTS TO SERV2 ICE DELIVERY AREAS THAT DO NOT HAVE IN

3 EFFECT AN APPROVED LOCAL ECONOMIC

4 SELF-SUFFICIENCY STANDARDS TABLE.

5 (a) IN GENERAL.—Paragraph (7) of section 106(b)

6 of such Act (29 U.S.C. 1516(b)(7)) is amended—

7 (1) by striking ‘‘From funds available’’ and in8 serting ‘‘(A) Subject to subparagraph (B), from

9 funds available’’;

10 (2) by redesignating clauses (i) and (ii) of sub11 paragraph (D) as subclauses (I) and (II), respec12 tively;

13 (3) by redesignating subparagraphs (A) through

14 (E) of such paragraph as clauses (i) through (v), re15 spectively; and

16 (4) by adding at the end the following new sub17 paragraph:

18 ‘‘(B) A Governor shall not award incentive

19 grants for programs under part A of title II to serv20 ice delivery areas that do not have in effect a local

21 economic self-sufficiency standards table approved

22 under paragraph (9)(C).

23 (b) EFFECTIVE DATE.—The amendments made by

24 subsection (a) shall take effect 2 years after the date of

25 the enactment of this Act.
168

•HR 2790 IH

1 SEC. 246. INCLUSION OF LOCAL ECONOMIC SELF-SUFFI2 CIENCY STANDARDS TABLE AND RELATED

3 REPORTS IN JOB TRAINING PLAN.

4 (a) LOCAL ECONOMIC SELF-SUFFICIENCY STAND5 ARDS TABLE.—Subparagraph (B) of section 104(b)(5) of

6 such Act (29 U.S.C. 1514(b)(5)(B)) is amended by insert7 ing ‘‘, including the local economic self-sufficiency stand8 ards table developed pursuant to subsection (b)(9) of such

9 section’’ after ‘‘section 106’’.

10 (b) ANNUAL REPORTS.—Subsection (b) of section

11 104 of such Act (29 U.S.C. 1514(b)) is amended—

12 (1) in paragraph (12), by striking ‘‘; and’’ and

13 inserting a semicolon;

14 (2) in paragraph (13), by striking the period at

15 the end of such paragraph and inserting ‘‘; and’’;

16 and

17 (3) by adding at the end the following new

18 paragraph:

19 ‘‘(14) procedures for the preparation and sub20 mission of an annual report to the Governor, which

21 shall include—

22 ‘‘(A) with respect to each participant who

23 has completed training under a program carried

24 out under part A of title II in the service deliv25 ery area, information relating to—
169

•HR 2790 IH

1 ‘‘(i) the type and amount of services

2 provided to such participant under the pro3 gram;

4 ‘‘(ii) the subsequent employment of

5 the participant, where appropriate, includ6 ing the amount of wages and employment

7 benefits received by the participant under

8 such employment; and

9 ‘‘(iii) the degree of long-term eco10 nomic self-sufficiency which the participant

11 has achieved as a result of the training re12 ceived by the participant under the pro13 gram based upon the local economic self14 sufficiency standards table; and

15 ‘‘(B) a summary needs table which—

16 ‘‘(i) ranks and places participants into

17 at least 4 categories of equal size based

18 upon the needs designated by the Sec19 retary under section 106(b)(9)(A)(iii);

20 ‘‘(ii) includes a description of the level

21 of measurements used to place the partici22 pants into such categories; and

23 ‘‘(iii) includes a description of the de24 gree to which participants in each category

25 achieved long-term economic self-suffi-
170

•HR 2790 IH

1 ciency after termination from a program

2 under part A of title II.’’.

3 SEC. 247. INCLUSION OF LOCAL ECONOMIC SELF-SUFFI4 CIENCY STANDARDS TABLES AND RELATED

5 REPORTS IN GOVERNOR’S COORDINATION

6 AND SPECIAL SERVICES PLAN.

7 Subsection (b) of section 121 of such Act (29 U.S.C.

8 1531(b)) is amended—

9 (1) by redesignating paragraphs (6) and (7) as

10 paragraphs (7) and (8), respectively; and

11 (2) by inserting after paragraph (5) the follow12 ing new paragraph:

13 ‘‘(6) The plan shall include—

14 ‘‘(A) the local economic self-sufficiency

15 standards table developed by each service deliv16 ery areas pursuant to section 106(b)(9);

17 ‘‘(B) a compilation of the reports received

18 by the Governor under section 104(b)(14); and

19 ‘‘(C) a description of goals and objectives

20 to assist participants enrolled in programs

21 under part A of title II achieve long-term eco22 nomic self-sufficiency.’’.
171

•HR 2790 IH

1 SEC. 248. DEMONSTRATION PROGRAMS TO IMPLEMENT

2 LOCAL ECONOMIC SELF-SUFFICIENCY

3 STANDARDS TABLES.

4 (a) IN GENERAL.—Part D of title IV of such Act (29

5 U.S.C. 1737 et seq.) is amended by adding at the end

6 the following new section:

7 ‘‘SEC. 457. ECONOMIC SELF-SUFFICIENCY DEMONSTRATION

8 GRANT PROGRAM.

9 ‘‘(a) AUTHORIZATION.—

10 ‘‘(1) IN GENERAL.—From funds available

11 under this part for the fiscal years 1996, 1997, and

12 1998, the Secretary shall use $1,500,000 in each

13 such fiscal year to provide grants to States to estab14 lish and carry out demonstration and exemplary pro15 grams to increase the number of participants in pro16 grams under part A of title II who are trained and

17 placed in jobs that yield long-term economic self-suf18 ficiency in accordance with the local economic self19 sufficiency standards tables under section 106(b)(9).

20 ‘‘(2) LIMITATION.—The Secretary may provide

21 no more than 6 grants in each fiscal year under

22 paragraph (1).

23 ‘‘(b) APPLICATION.—The Secretary may provide a

24 grant to a State under subsection (a) only if such State

25 submits to the Secretary an application which contains

26 such information as the Secretary may reasonably require.
172

•HR 2790 IH

1 ‘‘(c) USE OF FUNDS.—

2 ‘‘(1) IN GENERAL.—A State shall use amounts

3 received from a grant under subsection (a) to award

4 grants to service delivery areas and eligible service

5 providers described in paragraph (3) to develop and

6 test strategies to train, place, and retain participants

7 in jobs that yield long-term economic self-sufficiency

8 in accordance with the local economic self-sufficiency

9 standards tables under section 106(b)(9).

10 ‘‘(2) APPROPRIATE LEVEL OF SERVICES.—In

11 providing grants under paragraph (1), a State shall

12 ensure that each service delivery area or service pro13 vider provides for an appropriate level of services, in14 cluding supportive services, to participants using the

15 relevant local economic self-sufficiency standards ta16 bles developed by the service delivery area.

17 ‘‘(3) ELIGIBLE SERVICE PROVIDERS.—Eligible

18 service providers described in this paragraph are

19 community-based organizations, educational institu20 tions, or any other service providers in the State

21 that have a demonstrated success in—

22 ‘‘(A) providing occupational skills training

23 to participants for high-wage jobs; and
173

•HR 2790 IH

1 ‘‘(B) ensuring that participants receive

2 supportive services in order to successfully com3 plete such training.

4 ‘‘(d) ADMINISTRATIVE AND RELATED COSTS.—In

5 any fiscal year in which a State receives amounts from

6 a grant under subsection (a), the State may retain an

7 amount not to exceed 10 percent of the grant amount to—

8 ‘‘(1) pay the administrative costs of programs

9 established and carried out under subsection (a);

10 ‘‘(2) facilitate the coordination of statewide ap11 proaches to training and placing participants in jobs

12 yielding long-term economic self-sufficiency; and

13 ‘‘(3) provide technical assistance to service de14 livery areas and service providers.

15 ‘‘(e) SELECTION.—In providing grants to States

16 under subsection (a), the Secretary shall consider—

17 ‘‘(1) the extent to which the State has dem18 onstrated that the coordination of services provided

19 under this Act with services provided by agencies

20 and organizations addressing the basic needs of low21 income individuals, including housing, food, trans22 portation, dependent care, and health care, has re23 sulted in the prompt and efficient delivery of services

24 to participants under this Act;
174

•HR 2790 IH

1 ‘‘(2) the extent to which the State has dem2 onstrated its capability to ensure the provision of all

3 needed supportive services to participants in any job

4 training program carried out in the State for the du5 ration of such participants’ enrollment;

6 ‘‘(3) the extent of private sector involvement in

7 the development and implementation of training pro8 grams that increase opportunities for participants to

9 achieve long-term economic self-sufficiency under

10 this Act in the State;

11 ‘‘(4) the extent to which the initiatives proposed

12 by a State in its application supplement or build

13 upon existing efforts in the State to train and place

14 individuals in jobs that increase opportunities for

15 participants to achieve long-term economic self-suffi16 ciency;

17 ‘‘(5) whether the proposed amount of the grant

18 to be provided under subsection (a) is sufficient to

19 accomplish measurable goals;

20 ‘‘(6) the extent to which the State is prepared

21 to disseminate information on its demonstration

22 training programs relating to training, placement,

23 and other services; and
175

•HR 2790 IH

1 ‘‘(7) the extent to which the State is prepared

2 to produce materials that allow for replication of

3 such State’s demonstration training programs.

4 ‘‘(f) EVALUATION.—The Secretary shall provide for

5 an evaluation of the programs established and carried out

6 under subsection (a), including evaluation of the effective7 ness of such programs in—

8 ‘‘(1) assisting participants with varying needs

9 in achieving long-term economic self-sufficiency

10 through training, placement, and other services;

11 ‘‘(2) effectively implementing the use of local

12 economic self-sufficiency standards tables to increase

13 the number of participants achieving long-term eco14 nomic self-sufficiency; and

15 ‘‘(3) developing and replicating approaches to

16 assist participants with varying needs in achieving

17 long-term economic self-sufficiency through training,

18 placement, and other services.’’.

19 (b) CONFORMING AMENDMENT.—The table of con20 tents of such Act is amended by inserting after the item

21 relating to section 456 the following new item:

‘‘Sec. 457. Economic self-sufficiency demonstration grant program.’’.

22 SEC. 249. REPORT AND RECOMMENDATIONS.

23 (a) REPORT.—Not later than 2 years after the date

24 on which the Secretary provides the 1st grant to a State

25 under section 457(a)(1) of the Job Training Partnership
176

•HR 2790 IH

1 Act and biennially thereafter, the Secretary of Labor shall

2 submit to the Congress a report on—

3 (1) the extent to which States, service delivery

4 areas, and other service providers have succeeded in

5 training, placing, and retaining participants enrolled

6 in programs under part A of title II of such Act in

7 jobs yielding long-term economic self-sufficiency; and

8 (2) the effectiveness of the demonstration pro9 grams established under section 457 of such Act in

10 developing and replicating approaches to train,

11 place, and retain participants in such jobs, including

12 a summary of activities performed by grant recipi13 ents under the demonstration programs authorized

14 under such section.

15 (b) RECOMMENDATIONS.—The report described in

16 subsection (a) shall include recommendations on—

17 (1) the need to continue, expand, or modify the

18 demonstration programs established under section

19 457 of the Job Training Partnership Act;

20 (2) legislative and administrative changes nec21 essary to increase opportunities for participants to

22 achieve long-term economic self-sufficiency; and

23 (3) legislative and administrative action nec24 essary to institutionalize the use of local economic

25 self-sufficiency standards tables as the principal
177

•HR 2790 IH

1 measure of performance for programs carried out

2 under part A of title II of the Job Training Partner3 ship Act (29 U.S.C. 1601 et seq.) such that—

4 (A) the basic measure of performance for

5 such programs shall be the achievement of long6 term economic self-sufficiency resulting from

7 participation in the program;

8 (B) placements are evaluated according to

9 whether the wages and employment benefits

10 meet the participant’s particular long-term eco11 nomic self-sufficiency needs;

12 (C) both wages and the cash value of em13 ployment benefits are used to determine wheth14 er a participant has achieved the self-sufficiency

15 standard for their particular family size and

16 composition;

17 (D) in order to ensure that participants

18 with varying needs are served equitably, the

19 placements shall be equitably distributed among

20 the categories contained in the summary needs

21 table established by the service delivery area in

22 the job training plan prepared under section

23 104(b)(14)(B) of the Job Training Partnership

24 Act; and
178

•HR 2790 IH

1 (E) incentive grants under section

2 106(b)(7) of such Act (29 U.S.C. 1516(b)(7))

3 are provided to service delivery areas based pri4 marily on the extent to which such areas exceed

5 the standards under the local economic self-suf6 ficiency standards table for such areas.

7 TITLE III—WORK AND FAMILY

8 Subtitle A—Child Care Public9 Private Partnership Act

10 SEC. 301. SHORT TITLE.

11 This title may be cited as the ‘‘Child Care Public12 Private Partnership Act of 1993’’.

13 SEC. 302. ESTABLISHMENT OF BUSINESS INCENTIVE

14 GRANT PROGRAM.

15 The Secretary of Health and Human Services shall

16 establish a program to make grants to—

17 (1) businesses and consortia—

18 (A) to pay start-up costs incurred to pro19 vide child care services; or

20 (B) to provide additional child care serv21 ices;

22 needed by the employees of such businesses; and

23 (2) nonprofit business organizations to provide

24 technical information and assistance to enable busi25 nesses to provide child care services.
179

•HR 2790 IH

1 SEC. 303. ELIGIBILITY TO RECEIVE GRANTS.

2 To be eligible to receive a grant under section 302,

3 a business, nonprofit business organization, or consortium

4 shall submit to the Secretary an application in accordance

5 with section 304.

6 SEC. 304. APPLICATION.

7 The application required by section 303 shall be sub8 mitted by a business, nonprofit business organization, or

9 consortium at such time, in such form, and containing

10 such information as the Secretary may require by rule,

11 except that such application shall contain—

12 (1) an assurance that the applicant shall ex13 pend, for the purpose for which such grant is made,

14 an amount not less than 200 percent of the amount

15 of such grant;

16 (2) an assurance that such applicant will ex17 pend such grant for the use specified in paragraph

18 (1) or (2) of section 302, as the case may be;

19 (3) an assurance that such applicant will em20 ploy strategies to ensure that child care services pro21 vided by such applicant, or provided with the tech22 nical information and assistance made available by

23 such applicant, are provided at affordable rates, and

24 on an equitable basis, to low- and moderate-income

25 employees;

26 (4) an assurance that such applicant—
180

•HR 2790 IH

1 (A) in the case of a business or consor2 tium, will comply with all State and local licens3 ing requirements applicable to such business or

4 consortium concerning the provision of child

5 care services; or

6 (B) in the case of a nonprofit business or7 ganization, will employ procedures to ensure

8 that technical information and assistance pro9 vided under this Act by such business organiza10 tion will be provided only to businesses that

11 provide child care services in compliance with

12 all State and local licensing requirements appli13 cable to child care providers in such State; and

14 (5) in the case of a business or consortium, an

15 assurance that if the employees of such applicant do

16 not require all the child care services for which such

17 grant and the funds required by paragraph (1) are

18 to be expended by such applicant, the excess of such

19 child care services shall be made available to families

20 in the community in which such applicant is located.

21 SEC. 305. SELECTION OF GRANTEES.

22 For purposes of selecting applicants to receive grants

23 under this Act, the Secretary shall give priority to busi24 nesses that have fewer than 100 full-time employees. To

25 the extent practicable, the Secretary shall—
181

•HR 2790 IH

1 (1) make grants equitably under this Act to ap2 plicants located in all geographical regions of the

3 United States; and

4 (2) give priority to applicants for grants under

5 section 302(1).

6 SEC. 306. DEFINITIONS.

7 As used in the Act:

8 (1) BUSINESS.—The term ‘‘business’’ means a

9 person engaged in commerce whose primary activity

10 is not providing child care services.

11 (2) CHILD CARE SERVICES.—The term ‘‘child

12 care services’’ means care for a child that is—

13 (A) provided on the site at which a parent

14 of such child is employed or at a site nearby in

15 the community; and

16 (B) subsidized at least in part by the busi17 ness that employs such parent.

18 (3) CONSORTIUM.—The term ‘‘consortium’’

19 means 2 or more businesses acting jointly. A consor20 tium may also include a nonprofit private organiza21 tion.

22 (4) SECRETARY.—The term ‘Secretary’ means

23 the Secretary of Health and Human Services.
182

•HR 2790 IH

1 SEC. 307. AUTHORIZATION OF APPROPRIATIONS.

2 There is authorized to be appropriated to carry out

3 this Act $25,000,000 for each of the fiscal years 1994,

4 1995, 1996, and 1997.

5 Subtitle B—After-School Child

6 Care

7 SEC. 311. SHORT TITLE.

8 This subtitle may be cited as the ‘‘After-School Child

9 Care Act of 1993’’.

10 SEC. 312. FINDINGS.

11 The Congress makes the following findings:

12 (1) Major changes have occurred in America’s

13 family and work life in the past two decades as

14 women with children have entered the work force in

15 large numbers.

16 (2) Between 1970 and 1988, the proportion of

17 all women with children younger than 18 who were

18 in the labor force rose from 40 to 65 percent.

19 (3) For many working parents, especially single

20 parents, finding quality and affordable afterschool

21 services to provide supervision for their children

22 until the end of the work day is a major concern and

23 challenge.

24 (4) Because of the cost or unavailability of serv25 ices, afterschool care for many has been an insur-
183

•HR 2790 IH

1 mountable problem which has resulted in children

2 being left along afterschool to fend for themselves.

3 (5) More than 2,000,000 children between the

4 ages of 5 through 13 are left alone to care for them5 selves after school.

6 (6) Because of the lack of adult supervision,

7 such children are exposed to higher risks of physical

8 injury at the hands of others or themselves.

9 (7) Recent studies have also found that children

10 unsupervised for 1 or more hours per school day are

11 at greater risk of substance abuse.

12 (8) The community as a whole also suffers from

13 the limited availability of quality and affordable

14 afterschool care for children.

15 SEC. 313. PURPOSE.

16 The purpose of this Act is to provide grants to assist

17 State educational agencies and local educational agencies

18 in establishing State and district-wide afterschool care

19 programs that—

20 (1) provide affordable and quality afterschool

21 supervision for students enrolled in kindergarten

22 through grade 6 who could be without supervision of

23 an adult after the end of the instructional school day

24 as a result of parental employment;
184

•HR 2790 IH

1 (2) reinforce and expand learning experiences of

2 children by providing a spectrum of opportunities

3 and activities after regular school hours, including

4 homework help, reading, tutorial assistance, enrich5 ment in areas such as art, crafts and expressive

6 arts, and access to school libraries and classrooms;

7 (3) improve the physical development of chil8 dren by providing supervised recreational sports, and

9 fitness activities;

10 (4) increase the utilization of school facilities;

11 and

12 (5) enhance the relationship between home and

13 school by collaboratively meeting the needs of chil14 dren.

15 SEC. 314. PROGRAM AUTHORIZED.

16 (a) GENERAL AUTHORITY.—The Secretary of Edu17 cation is authorized to make grants to State and local edu18 cational agencies which have applications approved under

19 section 315 to pay the Federal share of the cost of pro20 grams designed to provide affordable and quality after21 school care for students enrolled in kindergarten through

22 grade 6.

23 (b) USES OF FUNDS.—State and local educational

24 agencies that receive grants under this Act may use the

25 funds to plan, develop, implement, administer, or expand
185

•HR 2790 IH

1 afterschool care programs through cooperative agree2 ments, contracts for services, or direct employment of

3 staff, which—

4 (1) provides stimulating afterschool activities

5 such as homework assistance, tutoring, reading,

6 physical activity, arts and crafts, and expressive

7 arts;

8 (2) utilizes existing public school facilities, in9 cluding classrooms, libraries, computers, and other

10 school equipment; and

11 (3) utilizes school teachers, counselors, adminis12 trators, other faculty and parents to provide after13 school supervision.

14 (c) ELIGIBLE STUDENTS.—Participation in such an

15 afterschool program shall be limited to public elementary

16 school students enrolled in kindergarten through grade 6

17 who—

18 (1) come from households headed by a single

19 working parent or guardian, or two working parents

20 or guardians;

21 (2) are children of persons who work in the

22 afterschool program;

23 (3) are children of parents who attend school or

24 job training for career development; or
186

•HR 2790 IH

1 (4) are recommended by the school on the basis

2 of educational need, subject to available resources.

3 SEC. 315. APPLICATION.

4 (a) APPLICATION.—A State or local educational

5 agency that desires to receive a grant under this Act shall

6 submit an application to the Secretary of Education at

7 such time, in such manner, and accompanied by such addi8 tional information as the Secretary may reasonably re9 quire.

10 (b) REQUIREMENTS.—Each such application shall

11 contain a plan to develop and implement a State or dis12 trict-wide afterschool program which includes—

13 (1) policies and procedures for the employment

14 of adequate staff to administer the afterschool pro15 gram;

16 (2) if applicable, procedures for contracting

17 with private entities to provide afterschool services;

18 (3) policies and procedures for establishing af19 fordable fees to be paid by parents and guardians to

20 help pay for the cost of the afterschool care;

21 (4) policies to ensure that students who qualify

22 for the school free or reduced-price lunch program

23 are exempt from program fees;

24 (5) policies and procedures to establish under

25 what circumstances students may be precluded from
187

•HR 2790 IH

1 continued participation in the program, including

2 failure to pay the program fee, chronic late pick-ups,

3 or conduct which jeopardizes the safety or welfare of

4 the program’s staff or participants;

5 (6) a plan to ensure optimum use of the edu6 cational facilities and resource available at sites that

7 are not in conflict with the goals and objectives of

8 the State or local educational agency’s regular edu9 cation and afterschool instructional program;

10 (7) a plan to ensure adequate coordination with

11 the public school system on such matters as shared

12 use of facilities, materials and equipment, and cur13 riculum;

14 (8) a plan to ensure the development of a

15 meaningful curriculum consistent with objectives of

16 the State or local educational agency’s regular in17 structional program; and

18 (9) a plan to ensure parental and community

19 participation in the development of an afterschool

20 program, including input from existing public and

21 private providers of afterschool care.

22 (c) SPECIAL CONSIDERATION.—In making an award

23 under this Act, the Secretary shall give special consider24 ation to—
188

•HR 2790 IH

1 (1) the geographic distribution of awards, in2 cluding urban and rural districts; and

3 (2) districts with high proportions of at-risk

4 students.

5 SEC. 316. LIMITATIONS.

6 (a) FEDERAL SHARE.—Federal funds may be used

7 for not more than 75 percent of the costs of the project

8 with the remaining funds coming from non-Federal

9 sources, including program fees paid by parents and in10 kind services.

11 (b) LIMITATION ON PLANNING COSTS.—Not more

than 1 12 ⁄3 of project funds may be used for planning an

13 afterschool program.

14 (c) IMPLEMENTATION OF NON-FEDERAL FUNDS.—

15 All Federal funds must be used to supplement and not

16 supplant the funds that would otherwise be available from

17 non-Federal sources for this project.

18 SEC. 317. REPORTS.

19 A State or local educational agency that receives a

20 grant under this Act shall submit to the Secretary a report

21 by March of each year that—

22 (1) describes the progress in meeting the pur23 pose of this Act;

24 (2) includes information on the enrollment and

25 costs of the afterschool program;
189

•HR 2790 IH

1 (3) describes the impact of the program on—

2 (A) meeting the need of afterschool care in

3 the State or district;

4 (B) other existing public and private after5 school care programs; and

6 (C) functioning of the regular school pro7 gram; and

8 (4) any other information that may be pre9 scribed by the Secretary of Education.

10 SEC. 318. AUTHORIZATION OF FUNDS.

11 There are authorized to be appropriated to carry out

12 the provisions of this Act $250,000,000 for the fiscal year

13 1995 and such sums as may be necessary for each of the

14 fiscal years, 1996, 1997, 1998, and 1999.

15 Subtitle C—Dependent Care Tax

16 Credit Refundability

17 SEC. 321. DEPENDENT CARE TAX CREDIT.

18 (a) DEPENDENT CARE SERVICES.—Subpart C of

19 part IV of subchapter A of chapter 1 of the Internal Reve20 nue Code of 1986 (relating to refundable credits) is

21 amended by redesignating section 35 as section 36 and

22 by inserting after section 34 the following new section:

23 ‘‘SEC. 35. DEPENDENT CARE SERVICES.

24 ‘‘(a) ALLOWANCE OF CREDIT.—
190

•HR 2790 IH

1 ‘‘(1) IN GENERAL.—In the case of an individual

2 who maintains a household which includes as a

3 member 1 or more qualifying individuals, there shall

4 be allowed as a credit against the tax imposed by

5 this subtitle for the taxable year an amount equal to

6 the applicable percentage of the sum of—

7 ‘‘(A) the employment-related expenses paid

8 by such individual during the taxable year, plus

9 ‘‘(B) the respite care expenses paid by

10 such individual during the taxable year.

11 ‘‘(2) APPLICABLE PERCENTAGE DEFINED.—

12 ‘‘(A) IN GENERAL.—For purposes of para13 graph (1), the term ‘applicable percentage’

14 means 50 percent reduced (but not below 20

15 percent) by 1 percentage point for each full

16 $1,000 amount by which the taxpayer’s ad17 justed gross income for the taxable year exceeds

18 $15,000.

19 ‘‘(B) COST-OF-LIVING ADJUSTMENT.—

20 ‘‘(i) IN GENERAL.—In the case of a

21 taxable year beginning in a calendar year

22 after 1994, subparagraph (A) shall be ap23 plied by increasing the $15,000 amount

24 contained therein by the cost-of-living ad25 justment (as defined in section 1(f)(3)) for
191

•HR 2790 IH

1 such calendar year determined by sub2 stituting ‘‘1993’’ for ‘‘1989’’ in subpara3 graph (B) of section 1(f)(3).

4 ‘‘(ii) ROUNDING.—If any increase de5 termined under clause (i) is not a multiple

6 of $10, such increase shall be rounded to

7 the nearest multiple of $10 (or if such in8 crease is a multiple of $15, such increase

9 shall be increased to the next highest mul10 tiple of $10).

11 ‘‘(b) EMPLOYMENT-RELATED EXPENSES.—For pur12 poses of this section—

13 ‘‘(1) DETERMINATION OF ELIGIBLE EX14 PENSES.—

15 ‘‘(A) IN GENERAL.—The term ‘employ16 ment-related expenses’ means amounts paid for

17 the following expenses, but only if such ex18 penses are incurred to enable the taxpayer to be

19 gainfully employed for any period for which

20 there are 1 or more qualifying individuals with

21 respect to the taxpayer:

22 ‘‘(i) expenses for household services,

23 and

24 ‘‘(ii) expenses for the care of a quali25 fying individual.
192

•HR 2790 IH

1 Such term shall not include any amount paid

2 for services outside the taxpayer’s household at

3 a camp where the qualifying individual stays

4 overnight and shall not include any respite care

5 expense taken into account under subsection

6 (a).

7 ‘‘(B) EXCEPTION.—Employment-related

8 expenses described in subparagraph (A) which

9 are incurred for services outside the taxpayer’s

10 household shall be taken into account only if in11 curred for the care of—

12 ‘‘(i) a qualifying individual described

13 in subsection (d)(1), or

14 ‘‘(ii) a qualifying individual (not de15 scribed in subsection (d)(1)) who regularly

16 spends at least 8 hours each day in the

17 taxpayer’s household.

18 ‘‘(C) DEPENDENT CARE CENTERS.—Em19 ployment-related expenses described in subpara20 graph (A) which are incurred for services pro21 vided outside the taxpayer’s household by a de22 pendent care center (as defined in subpara23 graph (D)) shall be taken into account only if—
193

•HR 2790 IH

1 ‘‘(i) such center complies with all ap2 plicable laws and regulations of a State or

3 unit of local government, and

4 ‘‘(ii) the requirements of subpara5 graph (B) are met.

6 ‘‘(D) DEPENDENT CARE CENTER DE7 FINED.—For purposes of this paragraph, the

8 term ‘dependent care center’ means any facility

9 which—

10 ‘‘(i) provides care for more than 6 in11 dividuals (other than individuals who re12 side at the facility), and

13 ‘‘(ii) receives a fee, payment, or grant

14 for providing services for any of the indi15 viduals (regardless of whether such facility

16 is operated for profit).

17 ‘‘(2) DOLLAR LIMIT ON AMOUNT CRED18 ITABLE.—

19 ‘‘(A) IN GENERAL.—The amount of the

20 employment-related expenses incurred during

21 any taxable year which may be taken into ac22 count under subsection (a) shall not exceed—

23 ‘‘(i) $2,400 if there is 1 qualifying in24 dividual with respect to the taxpayer for

25 such taxable year, or
194

•HR 2790 IH

1 ‘‘(ii) $4,800 if there are 2 or more

2 qualifying individuals with respect to the

3 taxpayer for such taxable year.

4 The amount determined under clause (i) or (ii)

5 (whichever is applicable) shall be reduced by the

6 aggregate amount excludable from gross income

7 under section 129 for the taxable year.

8 ‘‘(B) REDUCTION IN LIMIT FOR AMOUNT

9 OF RESPITE CARE EXPENSES.—The limitation

10 of subparagraph (A) shall be reduced by the

11 amount of the respite care expenses taken into

12 account by the taxpayer under subsection (a)

13 for the taxable year.

14 ‘‘(3) EARNED INCOME LIMITATION.—

15 ‘‘(A) IN GENERAL.—Except as otherwise

16 provided in this paragraph, the amount of the

17 employment-related expenses incurred during

18 any taxable year which may be taken into ac19 count under subsection (a) shall not exceed—

20 ‘‘(i) in the case of an individual who

21 is not married at the close of such year,

22 such individual’s earned income for such

23 year, or

24 ‘‘(ii) in the case of an individual who

25 is married at the close of such year, the
195

•HR 2790 IH

1 lesser of such individual’s earned income or

2 the earned income of his spouse for such

3 year.

4 ‘‘(B) SPECIAL RULE FOR SPOUSE WHO IS

5 A STUDENT OR INCAPABLE OF CARING FOR

6 HIMSELF.—In the case of a spouse who is a

7 student or a qualified individual described in

8 subsection (d)(3), for purposes of subparagraph

9 (A), such spouse shall be deemed for each

10 month during which such spouse is a full-time

11 student at an educational institution, or is such

12 a qualifying individual, to be gainfully employed

13 and to have earned income of not less than—

14 ‘‘(i) $200 if paragraph (2)(A)(i) ap15 plies for the taxable year, or

16 ‘‘(ii) $400 if paragraph (2)(A)(ii) ap17 plies for the taxable year.

18 In the case of any husband and wife, this sub19 paragraph shall apply with respect to only one

20 spouse for any one month.

21 ‘‘(c) RESPITE CARE EXPENSES.—For purposes of

22 this section—

23 ‘‘(1) IN GENERAL.—The term ‘respite care ex24 penses’ means expenses paid (whether or not to en25 able the taxpayer to be gainfully employed) for—
196

•HR 2790 IH

1 ‘‘(A) the care of a qualifying individual—

2 ‘‘(i) who has attained the age of 13,

3 or

4 ‘‘(ii) who is under the age of 13 but

5 has a physical or mental impairment which

6 results in the individual being incapable of

7 caring for himself,

8 during any period when such individual regu9 larly spends at least 8 hours each day in the

10 taxpayer’s household, or

11 ‘‘(B) care (for not more than 14 days dur12 ing the calendar year) of a qualifying individual

13 described in subparagraph (A) during any pe14 riod during which the individual does not regu15 larly spend at least 8 hours each day in the tax16 payer’s household.

17 ‘‘(2) DOLLAR LIMIT.—The amount of the res18 pite care expenses incurred during any taxable year

19 which may be taken into account under subsection

20 (a) shall not exceed—

21 ‘‘(A) $1,200 if such expenses are incurred

22 with respect to only 1 qualifying individual for

23 the taxable year, or
197

•HR 2790 IH

1 ‘‘(B) $2,400 if such expenses are incurred

2 for 2 or more qualifying individuals for such

3 taxable year.

4 ‘‘(d) QUALIFYING INDIVIDUAL.—For purposes of this

5 section, the term ‘qualifying individual’ means—

6 ‘‘(1) a dependent of the taxpayer who is under

7 the age of 13 and with respect to whom the taxpayer

8 is entitled to a deduction under section 151(e),

9 ‘‘(2) a dependent of the taxpayer who is phys10 ically or mentally incapable of caring for himself, or

11 ‘‘(3) the spouse of the taxpayer, if he is phys12 ically or mentally incapable of caring for himself.

13 ‘‘(e) SPECIAL RULES.—For purposes of this sec14 tion—

15 ‘‘(1) MAINTAINING HOUSEHOLD.—An individ16 ual shall be treated as maintaining a household for

17 any period only if over half the cost of maintaining

18 the household for such period is furnished by such

19 individual (or, if such individual is married during

20 such period, is furnished by such individual and his

21 spouse).

22 ‘‘(2) MARRIED COUPLES MUST FILE JOINT RE23 TURN.—If the taxpayer is married at the close of

24 the taxable year, the credit shall be allowed under
198

•HR 2790 IH

1 subsection (a) only if the taxpayer and his spouse

2 file a joint return for the taxable year.

3 ‘‘(3) MARITAL STATUS.—An individual legally

4 separated from his spouse under a decree of divorce

5 or of separate maintenance shall not be considered

6 as married.

7 ‘‘(4) CERTAIN MARRIED INDIVIDUALS LIVING

8 APART.—If—

9 ‘‘(A) an individual who is married and who

10 files a separate return—

11 ‘‘(i) maintains as his home a house12 hold which constitutes for more than one13 half of the taxable year the principal place

14 of abode of a qualifying individual, and

15 ‘‘(ii) furnishes over half the cost of

16 maintaining such household during the

17 taxable year, and

18 ‘‘(B) during the last 6 months of such tax19 able year such individual’s spouse is not a mem20 ber of such household,

21 such individual shall not be considered as married.

22 ‘‘(5) SPECIAL DEPENDENCY TEST IN CASE OF

23 DIVORCED PARENTS, ETC.—If—
199

•HR 2790 IH

1 ‘‘(A) paragraph (2) or (4) of section

2 152(e) applies to any child with respect to any

3 calendar year, and

4 ‘‘(B) such child is under the age of 13 or

5 is physically or mentally incapable of caring for

6 himself,

7 in the case of any taxable year beginning in such

8 calendar year, such child shall be treated as a quali9 fying individual with respect to the custodial parent

10 (within the meaning of section 152(e)(1)), and shall

11 not be treated as a qualifying individual with respect

12 to the noncustodial parent.

13 ‘‘(6) PAYMENTS TO RELATED INDIVIDUALS.—

14 No credit shall be allowed under subsection (a) for

15 any amount paid by the taxpayer to an individual—

16 ‘‘(A) with respect to whom, for the taxable

17 year, a deduction under section 151(e) (relating

18 to deduction for personal exemptions for de19 pendents) is allowable either to the taxpayer or

20 his spouse, or

21 ‘‘(B) who is a child of the taxpayer (within

22 the meaning of section 151(e)(3)) who has not

23 attained the age of 19 at the close of the tax24 able year.
200

•HR 2790 IH

1 For purposes of this paragraph, the term ‘taxable

2 year’ means the taxable year of the taxpayer in

3 which the service is performed.

4 ‘‘(7) STUDENT.—The term ‘student’ means an

5 individual who during each of 5 calendar months

6 during the taxable year is a full-time student at an

7 educational organization.

8 ‘‘(8) EDUCATIONAL ORGANIZATION.—The term

9 ‘educational organization’ means an educational or10 ganization described in section 170(b)(1)(A)(ii).

11 ‘‘(9) IDENTIFYING INFORMATION REQUIRED

12 WITH RESPECT TO SERVICE PROVIDER.—No credit

13 shall be allowed under subsection (a) for any amount

14 paid to any person unless—

15 ‘‘(A) the name, address, and taxpayer

16 identification number of such person are in17 cluded on the return claiming the credit, or

18 ‘‘(B) if such person is an organization de19 scribed in section 501(c)(3) and exempt from

20 tax under section 501(a), the name and address

21 of such person are included on the return

22 claiming the credit.

23 In the case of a failure to provide the information

24 required under the preceding sentence, the preceding

25 sentence shall not apply if it is shown that the tax-
201

•HR 2790 IH

1 payer exercised due diligence in attempting to pro2 vide the information so required.

3 ‘‘(f) REGULATIONS.—The Secretary shall prescribe

4 such regulations as may be necessary to carry out the pur5 poses of this section.’’

6 (b) CONFORMING AMENDMENTS.—

7 (1) Section 21 of such Code is hereby repealed.

8 (2) Paragraph (2) of section 129(b) of such

9 Code is amended by striking out ‘‘section 21(d)(2)’’

10 and inserting in lieu thereof ‘‘section 35(b)(3)(B)’’.

11 (3) Subsection (e) of section 213 of such Code

12 is amended by striking out ‘‘section 21’’ and insert13 ing in lieu thereof ‘‘section 35’’.

14 (c) TECHNICAL AMENDMENTS.—

15 (1) The table of sections for subpart C of part

16 IV of subchapter A of chapter 1 of such Code is

17 amended by striking out the item relating to section

18 35 and inserting in lieu thereof the following:

‘‘Sec. 35. Dependent care services.

‘‘Sec. 36. Overpayments of tax.’’

19 (2) The table of sections for subpart A of such

20 part IV is amended by striking out the item relating

21 to section 21.

22 (d) EFFECTIVE DATE.—The amendments made by

23 this section shall apply to taxable years beginning after

24 December 31, 1993.
202

•HR 2790 IH

1 Subtitle D—Tax Incentives for

2 Family-Friendly Workplaces

3 SEC. 331. SHORT TITLE.

4 This subtitle may be cited as the ‘‘Tax Incentives for

5 Family-Friendly Workplaces Act’’.

6 SEC. 332. SMALL BUSINESS FAMILY AND MEDICAL LEAVE

7 CREDIT.

8 (a) IN GENERAL.—Subpart D of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of

10 1986 (relating to business related credits) is amended by

11 adding at the end thereof the following new section:

12 ‘‘SEC. 45A. SMALL BUSINESS FAMILY AND MEDICAL LEAVE

13 CREDIT.

14 ‘‘(a) AMOUNT OF CREDIT.—For purposes of section

15 38, in the case of an eligible small business employer, the

16 amount of the small business family and medical leave

17 credit determined under this section for any taxable year

18 shall be an amount equal to 50 percent of the qualified

19 family and medical leave costs paid or incurred by the tax20 payer during such taxable year.

21 ‘‘(b) LIMITATION ON CREDIT.—The credit allowed by

22 subsection (a) with respect to each employee for qualified

23 family and medical leave costs paid or incurred by the tax24 payer during the taxable year with respect to such em25 ployee shall not exceed $2,000.
203

•HR 2790 IH

1 ‘‘(c) DEFINITIONS.—For purposes of this section—

2 ‘‘(1) ELIGIBLE SMALL BUSINESS EMPLOYER.—

3 The term ‘eligible small business employer’ means

4 any employer who complies with title I of the Family

5 and Medical Leave Act of 1993 but who is not re6 quired to comply with such title by reason of em7 ploying fewer than 50 employees during the periods

8 described in section 101(4)(A) of such Act.

9 ‘‘(2) QUALIFIED FAMILY AND MEDICAL LEAVE

10 COSTS.—The term ‘qualified family and medical

11 leave costs’ means expenses incurred in connection

12 with complying with title I of the Family and Medi13 cal Leave Act of 1993.

14 ‘‘(d) DENIAL OF DOUBLE BENEFIT.—No deduction

15 shall be allowed under this chapter for that portion of the

16 qualified family and medical leave costs otherwise allow17 able as a deduction for the taxable year which is equal

18 to the amount of the credit determined for such taxable

19 year under this section.’’

20 (b) TECHNICAL AMENDMENT.—Subsection (b) of

21 section 38 of such Code is amended by striking ‘‘plus’’

22 at the end of paragraph (7), by striking the period at the

23 end of paragraph (8) and inserting ‘‘, plus’’, and by add24 ing at the end thereof the following new paragraph:
204

•HR 2790 IH

1 ‘‘(9) in the case of an eligible small business

2 employer (as defined in section 45A(c)), the small

3 business family and medical leave credit determined

4 under section 45A.’’

5 (c) CLERICAL AMENDMENT.—The table of sections

6 for subpart D of part IV of subchapter A of chapter 1

7 of such Code is amended by adding at the end the follow8 ing new item:

‘‘Sec. 45A. Small business family and medical leave credit.’’

9 (d) EFFECTIVE DATE.—The amendments made by

10 this section shall apply to expenses paid or incurred after

11 the date which is 6 months after the date of the enactment

12 of the Family and Medical Leave Act of 1993.

13 SEC. 333. CREDIT FOR WAGES PAID TO EMPLOYEE WHO IS

14 ALLOWED TO SHIFT HOURS OF EMPLOYMENT

15 OR TO WORK AT HOME IN ORDER TO REDUCE

16 CHILD CARE NEEDS.

17 (a) IN GENERAL.—Subpart D of part IV of sub18 chapter A of chapter 1 of the Internal Revenue Code of

19 1986 (relating to business related credits) is amended by

20 adding at the end thereof the following new section:
205

•HR 2790 IH

1 ‘‘SEC. 45B. WAGES PAID TO EMPLOYEE WHO IS ALLOWED

2 TO SHIFT HOURS OF EMPLOYMENT OR WORK

3 AT HOME IN ORDER TO REDUCE CHILD CARE

4 NEEDS.

5 ‘‘(a) IN GENERAL.—For purposes of section 38, the

6 amount of the child care-related wage credit determined

7 under this section for any taxable year shall be an amount

equal to 1 8 ⁄3 of the aggregate wages paid or incurred during

9 such year which are attributable to services performed by

10 an employee of the taxpayer during the 1–year period be11 ginning on the date the employee first becomes a qualified

12 employee of the taxpayer.

13 ‘‘(b) QUALIFIED EMPLOYEE.—For purposes of this

14 section, the term ‘qualified employee’ means any full-time

15 employee if—

16 ‘‘(1) such employee is permitted by the em17 ployer, solely in order to reduce the amount of de18 pendent care services provided (to a dependent of

19 the employee) outside the employee’s household, to

20 perform services for the employer—

21 ‘‘(A) at the employee’s home, or

22 ‘‘(B) during a period which is not within

23 the normal business hours of the employer, and

24 ‘‘(2) as a result of the services performed for

25 the employer as described in subparagraphs (A) and

26 (B) of paragraph (1), there is at least a 20 percent
206

•HR 2790 IH

1 reduction in the amount of time dependent care

2 services are provided to a dependent of the employee

3 outside the employee’s household.

4 ‘‘(c) OTHER DEFINITIONS AND SPECIAL RULES.—

5 ‘‘(1) EMPLOYEE MUST BE QUALIFIED EM6 PLOYEE FOR ENTIRE YEAR.—No credit shall be de7 termined under subsection (a) with respect to any

8 employee unless such employee is a qualified em9 ployee throughout the 1–year period described in

10 subsection (a).

11 ‘‘(2) ONLY $6,000 OF WAGES PER YEAR TAKEN

12 INTO ACCOUNT.—The amount of the wages which

13 may be taken into account with respect to any indi14 vidual shall not exceed $6,000 per year.

15 ‘‘(3) WAGES.—For purposes of this section, the

16 term ‘wages’ has the meaning given such term by

17 section 51(c) (determined without regard to para18 graph (4) thereof).

19 ‘‘(4) CERTAIN RULES TO APPLY.—Rules similar

20 to the rules of section 52 and subsections (f)

21 through (k) of section 51 shall apply for purposes of

22 this section.’’

23 (b) TECHNICAL AMENDMENT.—Subsection (b) of

24 section 38 of such Code (relating to current year business

25 credit) is amended by striking ‘‘plus’’ at the end of para-
207

•HR 2790 IH

1 graph (8), by striking the period at the end of paragraph

2 (9) and inserting ‘‘, plus’’, and by adding at the end there3 of the following new paragraph:

4 ‘‘(10) the child care-related wage credit deter5 mined under section 45B(a).’’

6 (c) CLERICAL AMENDMENT.—The table of sections

7 for subpart D of part IV of subchapter A of chapter 1

8 of such Code is amended by adding at the end thereof

9 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.’’

10 (d) EFFECTIVE DATE.—

11 (1) IN GENERAL.—The amendments made by

12 this section shall apply to wages paid or incurred

13 after the date which is 6 months after the date of

14 the enactment of the Family and Medical Leave Act

15 of 1993.

16 (2) EMPLOYER PRACTICES BEFORE EFFECTIVE

17 DATE.—For purposes of section 45B(b)(2) of the In18 ternal Revenue Code of 1986, as added by this sec19 tion, no reduction before the 1st taxable year to

20 which such section applies shall be taken into ac21 count.
208

•HR 2790 IH

1 Subtitle E—Federal Parental Leave

2 for Education Activities

3 SEC. 341. PARENTAL LEAVE FOR EDUCATION-RELATED AC4 TIVITIES.

5 (a) IN GENERAL.—(1) Subchapter II of chapter 63

6 of title 5, United States Code, is amended by adding at

7 the end the following:

8 ‘‘§ 6327. Parental leave for education-related activi9 ties

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

11 ‘‘(1) the term ‘dependent’ means a child under

12 subparagraph (A) or (B) of section 8341(a)(4); and

13 ‘‘(2) the term ‘intimidate, threaten, or coerce’

14 includes promising to confer or conferring any bene15 fit (such as appointment, promotion, or compensa16 tion), or effecting or threatening to effect any re17 prisal (such as deprivation of appointment, pro18 motion, or compensation).

19 ‘‘(b)(1) Subject to paragraph (2) and subsection (c),

20 an employee is entitled to 1 day of leave in each calendar

21 year, without loss of, or reduction in, pay, leave to which

22 such employee is otherwise entitled, credit for time or serv23 ice, or performance or efficiency rating, in order to partici24 pate in or attend activities of a school which is attended

25 by a dependent of such employee.
209

•HR 2790 IH

1 ‘‘(2) In the case of an employee serving on a part2 time basis who is entitled to leave under this section, the

3 length of the ‘day’ under paragraph (1) shall be prorated

4 in accordance with regulations prescribed under sub5 section (d).

6 ‘‘(c) An employee shall be eligible for leave under this

7 section if such employee—

8 ‘‘(1) is employed in an Executive agency; and

9 ‘‘(2) has performed at least 12 months of serv10 ice as an employee (continuously or otherwise) in 1

11 or more Executive agencies.

12 ‘‘(d)(1) The Office of Personnel Management shall

13 prescribe such regulations as may be necessary to carry

14 out this section.

15 ‘‘(2) Such regulations—

16 ‘‘(A) may include provisions under which leave

17 under this section may, at the option of the em18 ployee, be used in units of hours or other periods al19 lowable under the regulations; but

20 ‘‘(B) may not—

21 ‘‘(i) make an employee ineligible for leave

22 under this section by virtue of the fact that

23 such employee is serving on a temporary or

24 intermittent basis; or
210

•HR 2790 IH

1 ‘‘(ii) for purposes of any determination

2 under subsection (c)(2), exclude prior service by

3 virtue of the fact that such service was per4 formed on a temporary or intermittent basis.

5 ‘‘(e) Leave which is available to an employee under

6 this section in a year, but which is not used by such em7 ployee, shall not accumulate for use in a succeeding year.

8 ‘‘(f) An employee may not directly or indirectly in9 timidate, threaten, or coerce, or attempt to intimidate,

10 threaten, or coerce, any other employee for the purpose

11 of interfering with such other employee’s rights under the

12 preceding provisions of this section.’’.

13 (2) The table of sections for chapter 63 of title 5,

14 United States Code, is amended by adding after the item

15 relating to section 6326 the following:

‘‘6327. Parental leave for education-related activities.’’.

16 (b) TECHNICAL AMENDMENT.—Section 6129 of title

17 5, United States Code, is amended by inserting ‘‘6327,’’

18 after ‘‘6326,’’.

19 SEC. 342. EFFECTIVE DATE; CREDITABILITY OF SERVICE.

20 (a) EFFECTIVE DATE.—This Act shall take effect as

21 of the first day of the calendar year in which this Act is

22 enacted.

23 (b) CREDITABILITY OF SERVICE.—To determine if

24 an individual satisfies the requirement under section

25 6327(c)(2) of title 5, United States Code, as amended by
211

•HR 2790 IH

1 this Act, service shall be taken into account without regard

2 to whether performed before, on, or after the date of en3 actment of this Act.

4 TITLE IV—ECONOMIC SELF5 SUFFICIENCY

6 Subtitle A—Child Support

7 SEC. 401. SHORT TITLE.

8 This subtitle may be cited as the ‘‘Child Support Eco9 nomic Security Act of 1993’’.

10 PART A—CHILD SUPPORT ENFORCEMENT

11 AMENDMENTS

12 SEC. 411. UNIFORM STATEWIDE CHILD SUPPORT ENFORCE13 MENT PROGRAM.

14 Section 454(3) of the Social Security Act (42 U.S.C.

15 654(3)) is amended by striking ‘‘, which meets’’ and all

16 that follows and inserting ‘‘at the State level to administer

17 the plan under rules that apply uniformly throughout the

18 State;’’.

19 SEC. 412. ACCESS OF STATE CHILD SUPPORT ENFORCE20 MENT AGENCY TO INFORMATION IN STATE

21 DATA BASES.

22 Section 466(a) of the Social Security Act (42 U.S.C.

23 666(a)) is amended by inserting after paragraph (10) the

24 following:
212

•HR 2790 IH

1 ‘‘(11) Procedures which ensure that the agency

2 administering the plan under section 454 has on-line

3 access to all information contained in any data base

4 maintained by the State or any political subdivision

5 of the State.’’.

6 SEC. 413. CHILD SUPPORT PAYMENTS REQUIRED UNTIL

7 CERTAIN EVENT OCCURS.

8 Section 466(a) of the Social Security Act (42 U.S.C.

9 666(a)), as amended by section 412 of this Act, is amend10 ed by inserting after paragraph (11) the following:

11 ‘‘(12)(A) Procedures which ensure that any

12 court order, or order of an administrative process es13 tablished under State law, for support or mainte14 nance of a child, requires the payment of such sup15 port until the child—

16 ‘‘(i) if not disabled—

17 ‘‘(I) attains the age of 18 years;

18 ‘‘(II) is graduated from secondary

19 school or its equivalent, or, having been en20 rolled at such a school or equivalent, is no

21 longer so enrolled at any such school or

22 equivalent;

23 ‘‘(III) marries; or

24 ‘‘(IV) is emancipated by a court of

25 competent jurisdiction; or
213

•HR 2790 IH

1 ‘‘(ii) if disabled—

2 ‘‘(I) marries; or

3 ‘‘(II) is able to support himself or her4 self.

5 ‘‘(B) For purposes of subparagraph (A), the

6 term ‘disabled’ means having a severe, chronic dis7 ability which—

8 ‘‘(i) is attributable to a mental or physical

9 impairment, or combination of mental and

10 physical impairments;

11 ‘‘(ii) is likely to continue indefinitely;

12 ‘‘(iii) results in substantial functional limi13 tations in 3 or more of the following areas of

14 major life activity:

15 ‘‘(I) self-care;

16 ‘‘(II) receptive and expressive lan17 guage;

18 ‘‘(III) learning;

19 ‘‘(IV) mobility;

20 ‘‘(V) capacity for independent living;

21 ‘‘(VI) economic self-sufficiency; and

22 ‘‘(iv) reflects the need for a combination of

23 special, interdisciplinary, or generic care, treat24 ment, or other services that are of lifelong or

25 extended duration.’’.
214

•HR 2790 IH

1 SEC. 414. REQUIREMENT THAT ALL INCOME BE SUBJECT

2 TO WITHHOLDING TO MEET CHILD SUPPORT

3 OBLIGATIONS.

4 Section 466(a) of the Social Security Act (42 U.S.C.

5 666(a)), as amended by the preceding provisions of this

6 Act, is amended by inserting after paragraph (12) the fol7 lowing:

8 ‘‘(13)(A) Procedures which ensure that all in9 come of an individual (other than benefits received

10 through a Federal, State, or local program under

11 which entitlement to benefits is based on the means

12 of the beneficiary) is subject to withholding to meet

13 the child support obligations of the individual.

14 ‘‘(B) Procedures which require the agency re15 sponsible for the operation of any State lottery (in

16 this subparagraph referred to as the ‘lottery agen17 cy’)—

18 ‘‘(i) to inquire of the agency administering

19 the plan under section 454 whether any person

20 to whom the lottery agency is to directly pay

21 lottery winnings owes overdue support;

22 ‘‘(ii) to defer payment of the winnings

23 until the lottery agency receives a response to

24 the inquiry; and
215

•HR 2790 IH

1 ‘‘(iii) if the person owes overdue support,

2 to withhold from the payment of the winnings

3 the amount of the overdue support.

4 ‘‘(C) Procedures which require any insurer sub5 ject to regulation by the State—

6 ‘‘(i) to inquire of the agency administering

7 the plan under section 454 whether any person

8 claiming benefits under a policy of insurance is9 sued by the insurer owes overdue support;

10 ‘‘(ii) to defer payment of such benefits

11 until the insurer receives a response to the in12 quiry; and

13 ‘‘(iii) if the person owes overdue support—

14 ‘‘(I) to withhold from such benefits

15 the amount of the overdue support; and

16 ‘‘(II) to provide to the agency the

17 amount withheld for payment to the indi18 vidual owed the support.

19 ‘‘(D) Procedures which prevent a State court

20 from entering an order awarding the payment of

21 money to any person, or accepting an agreement set22 tling an action brought in the court that requires

23 money to be paid to any person, until—

24 ‘‘(i) the court has inquired of the agency

25 administering the plan under section 454
216

•HR 2790 IH

1 whether the person owes overdue support, and

2 has received a response to the inquiry; and

3 ‘‘(ii) if the person owes overdue support,

4 the person pays the amount of the overdue sup5 port.

6 ‘‘(E) Procedures which prevent any agency of

7 State or local government from recording a property

8 transaction, until—

9 ‘‘(i) the agency has inquired of the agency

10 administering the plan under section 454

11 whether any party to the transaction owes over12 due support, and has received a response to the

13 inquiry; and

14 ‘‘(ii) any such party—

15 ‘‘(I) pays the amount of any overdue

16 support; or

17 ‘‘(II) demonstrates that the party has

18 made a good faith effort—

19 ‘‘(aa) to pay the support due for

20 the month in which the transaction is

21 sought to be recorded; and

22 ‘‘(bb) to provide for the payment

23 of the overdue support through regu24 lar, periodic payments.’’.
217

•HR 2790 IH

1 SEC. 415. STATE LICENSES DENIED TO PARENTS WITH

2 PAST DUE CHILD SUPPORT OBLIGATIONS.

3 Section 466(a) of the Social Security Act (42 U.S.C.

4 666(a)), as amended by the preceding provisions of this

5 Act, is amended by inserting after paragraph (13) the fol6 lowing:

7 ‘‘(14) Procedures which prohibit the provision,

8 renewal, or reissuance of any license, required under

9 the law of the State or of any political subdivision

10 thereof before engaging in conduct subject to the li11 cense, to any person the amount of whose overdue

12 support exceeds $1,000, until the person dem13 onstrates that the person has made a good faith ef14 fort—

15 ‘‘(A) to pay the support due for the month

16 in which the license was requested to be pro17 vided, renewed, or reissued; and

18 ‘‘(B) to provide for the payment of the

19 overdue support through regular, periodic pay20 ments.’’.

21 SEC. 416. CERTAIN OVERDUE CHILD SUPPORT OBLIGA22 TIONS REQUIRED TO BE REPORTED TO

23 CONSUMER CREDIT REPORTING AGENCIES.

24 Section 466(a)(7) of the Social Security Act (42

25 U.S.C. 666(a)(7)) is amended to read as follows:
218

•HR 2790 IH

1 ‘‘(7) Procedures which ensure that the agency

2 administering the plan under section 454—

3 ‘‘(A) reports to the major consumer report4 ing agencies (as defined in section 603(f) of the

5 Fair Credit Reporting Act) the amount of over6 due support owed by an individual residing in

7 the State if the amount of the delinquency ex8 ceeds the amount of child support payable by

9 the individual on a monthly basis; and

10 ‘‘(B) upon request of a consumer reporting

11 agency, furnishes the consumer reporting agen12 cy information on the amount of overdue sup13 port owed by an individual residing in the

14 State, for a fee equal to not more than the cost

15 of furnishing the information;’’.

16 SEC. 417. ELIMINATION OF STATUTES OF LIMITATIONS IN

17 CHILD SUPPORT CASES.

18 Section 466(a) of the Social Security Act (42 U.S.C.

19 666(a)), as amended by the preceding provisions of this

20 Act, is amended by inserting after paragraph (14) the fol21 lowing:

22 ‘‘(15) Procedures which ensure that there is no

23 limit to the period in which any court order, or order

24 of an administrative process established under State
219

•HR 2790 IH

1 law, for support or maintenance of a child, may be

2 enforced.’’.

3 SEC. 418. REQUIREMENT THAT SOCIAL SECURITY NUM4 BERS APPEAR ON MARRIAGE LICENSES AND

5 CHILD SUPPORT ORDERS.

6 Section 466(a) of the Social Security Act (42 U.S.C.

7 666(a)), as amended by the preceding provisions of this

8 Act, is amended by inserting after paragraph (15) the fol9 lowing:

10 ‘‘(16) Procedures which ensure that, on each

11 marriage license issued by the State, and in each

12 court order, or order of an administrative process es13 tablished under State law, for support or mainte14 nance of a child, there appear the social security ac15 count numbers of each individual to whom the li16 cense is issued or upon whom the order imposes a

17 support obligation.’’.

18 SEC. 419. SEPARATE TREATMENT OF CASES ALLEGING

19 NONSUPPORT AND CASES ALLEGING DENIAL

20 OF VISITATION RIGHTS.

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 (16) the fol24 lowing:

25 ‘‘(17) Procedures which ensure that—
220

•HR 2790 IH

1 ‘‘(A) conduct affecting the exercise of visi2 tation rights under a court order, or an order

3 of an administrative process established under

4 State law, for support or maintenance of a

5 child, shall be treated as irrelevant in any ac6 tion brought to enforce the support provisions

7 of the order; and

8 ‘‘(B) the provision of, or failure to provide,

9 support pursuant to such an order shall be

10 treated as irrelevant in any action brought to

11 enforce visitation rights under the order.’’.

12 SEC. 420. TIMELY RESPONSE TO INTERSTATE LOCATE RE13 QUESTS.

14 Section 452(a) of the Social Security Act (42 U.S.C.

15 652(a)) is amended—

16 (1) by striking ‘‘and’’ at the end of paragraph

17 (9);

18 (2) by striking the period at the end of para19 graph (10) and inserting ‘‘; and’’; and

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

21 ‘‘(11) in establishing standards under para22 graph (1) for locating absent parents—

23 ‘‘(A) not later than 1 year after the date

24 of the enactment of this paragraph, prescribe

25 deadlines by which States must respond to re-
221

•HR 2790 IH

1 quests from other States for information, tak2 ing into account the state of available tech3 nology; and

4 ‘‘(B) review and, if appropriate, revise

5 such deadlines every 3 years taking into ac6 count the state of available technology.’’.

7 SEC. 421. REGULATIONS FOR PROCESSING OF INTERSTATE

8 CHILD SUPPORT CASES.

9 Section 452 of the Social Security Act (42 U.S.C.

10 652) is amended by adding at the end the following:

11 ‘‘(j) The Secretary shall issue regulations establishing

12 standards and procedures governing the processing by

13 States of cases involving the enforcement of child support

14 obligations against parents in other States, including a

15 deadline by which prosecutions must commence after the

16 case first comes to the attention of the State, and a dead17 line by which such actions must be decided or dismissed.’’.

18 SEC. 422. FINANCIAL INCENTIVES.

19 (a) ONLY CHILD SUPPORT ENFORCEMENT FUNDS

20 SUBJECT TO REDUCTION FOR SUBSTANTIAL NONCOMPLI21 ANCE.—

22 (1) IN GENERAL.—Subsection (h) of section

23 403 of such Act (42 U.S.C. 603(h)) is hereby trans24 ferred to section 455 of such Act, redesignated as

25 subsection (f) of such section 455, and amended—
222

•HR 2790 IH

1 (A) in paragraph (1)—

2 (i) by striking ‘‘Act’’ and inserting

3 ‘‘part’’;

4 (ii) by striking ‘‘part D’’ and inserting

5 ‘‘this part’’; and

6 (iii) by striking ‘‘such part’’ and in7 serting ‘‘this part’’; and

8 (B) in paragraph (3), by striking ‘‘this

9 part’’ and inserting ‘‘part A’’.

10 (2) CONFORMING AMENDMENTS.—

11 (A) Section 452(a)(4) of such Act (42

12 U.S.C. 652(a)(4)) is amended by striking

13 ‘‘403(h)’’ each place such term appears and in14 serting ‘‘455(f)’’.

15 (B) Subsections (d)(3)(A), (g)(1), and

16 (g)(3)(A) of section 452 of such Act (42 U.S.C.

17 652) are each amended by striking ‘‘403(h)’’

18 and inserting ‘‘455(f)’’.

19 (b) PAYMENTS TO STATES INCREASED.—

20 (1) IN GENERAL.—Section 455(a) of such Act

21 (42 U.S.C. 655(a)) is amended—

22 (A) in paragraph (1)—

23 (i) by striking ‘‘(a)(1)’’ and inserting

24 ‘‘(a)’’; and
223

•HR 2790 IH

1 (ii) in subparagraph (A), by striking

2 ‘‘the percent specified in paragraph (2)’’

3 and inserting ‘‘90 percent’’; and

4 (iii) in each of subparagraphs (B) and

5 (C), by striking ‘‘(rather than the percent6 age specified in subparagraph (A))’’;

7 (B) by striking paragraph (2); and

8 (C) by redesignating subparagraphs (A),

9 (B), and (C) of paragraph (1) as paragraphs

10 (1), (2), and (3), respectively.

11 (2) CONFORMING AMENDMENTS.—Paragraphs

12 (1)(B), (2)(A), and (2)(B) of section 452(d) of such

13 Act (42 U.S.C. 652(d)) are each amended by strik14 ing ‘‘455(a)(1)(B)’’ and inserting ‘‘455(a)(2)’’.

15 (c) REPEAL OF INCENTIVE PAYMENTS TO STATES.—

16 Section 458 of such Act (42 U.S.C. 658) is hereby re17 pealed.

18 SEC. 423. DEADLINE FOR ADOPTION OF UNIFORM INTER19 STATE FAMILY SUPPORT ACT.

20 Part D of title IV of the Social Security Act (42

21 U.S.C. 651–669) is amended by adding at the end the fol22 lowing:
224

•HR 2790 IH

1 ‘‘SEC. 469A. ADOPTION OF UNIFORM INTERSTATE FAMILY

2 SUPPORT ACT.

3 ‘‘As a condition for the approval of any State plan

4 under this part, the State must, not later than the effec5 tive date of this section, have in effect a law identical to

6 the Uniform Interstate Family Support Act, in the form

7 most recently adopted by the National Conference of Com8 missioners on Uniform State Laws before the enactment

9 of this section.’’.

10 SEC. 424. COMMISSION ON CHILD SUPPORT GUIDELINES.

11 (a) ESTABLISHMENT.—There is hereby established a

12 commission to be known as the Commission on Child Sup13 port Guidelines (in this section referred to as the ‘‘Com14 mission’’).

15 (b) APPLICABLE RULES.—Subsection (b) (except the

16 first sentence of paragraph (4) thereof), and subsections

17 (c), (e), (f)(2), and (g), of section 126 of the Family Sup18 port Act (42 U.S.C. 666 note; Public Law 100–485) shall

19 apply to the Commission in the same manner as such pro20 visions apply to the Commission on Interstate Child Sup21 port.

22 (c) QUALIFICATIONS.—Each person with authority to

23 make appointments to the Commission shall exercise the

24 authority to ensure that the Commission includes—
225

•HR 2790 IH

1 (1) persons with judicial or administrative expe2 rience in matters involving child support enforce3 ment; and

4 (2) representatives of organizations which rep5 resent custodial and noncustodial parents.

6 (d) DUTY.—Not later than 18 months after the last

7 of the initial appointments to the Commission is made,

8 the Commission shall submit to the Congress a report con9 taining recommendations for national guidelines for child

10 support award amounts, after consideration of the guide11 lines established by each State pursuant to section 467(a)

12 of the Social Security Act.

13 (e) TERMINATION.—The Commission shall terminate

14 2 months after the date of submission of the report re15 quired by subsection (d).

16 (f) EFFECTIVE DATE.—This section shall take effect

17 on the date of the enactment of this Act.

18 SEC. 425. EFFECTIVE DATE.

19 Except as otherwise provided in this title (or in the

20 amendments made by this title), the amendments made

21 by this title shall take effect on the 1st day of the 12th

22 calendar quarter beginning after the date of the enactment

23 of this Act.
226

•HR 2790 IH

1 PART B—INTERSTATE CHILD SUPPORT ACT OF

2 1993

3 SEC. 431. REFERENCE.

4 Except as otherwise specifically provided, wherever in

5 this Act an amendment is expressed in terms of an amend6 ment to or repeal of a section or other provision, the ref7 erence shall be considered to be made to that section or

8 other provision of the Social Security Act.

9 SEC. 432. FINDINGS, DECLARATIONS, AND PURPOSES.

10 (a) FINDINGS.—The Congress finds that—

11 (1) there is a large and growing number of

12 child support and parentage cases annually involving

13 disputes between parents or presumed parents who

14 reside in different States;

15 (2) the laws by which the courts of the various

16 States determine their authority to establish, en17 force, or modify a child support order, or to deter18 mine parentage are not uniform;

19 (3) those laws, along with the limits imposed by

20 a Federal system, on the authority of each State to

21 take certain actions outside its own boundaries, con22 tribute to—

23 (A) the pressing problem of parties moving

24 to avoid jurisdiction;

25 (B) inequities based solely on choice of

26 domicile;
227

•HR 2790 IH

1 (C) disregard of court orders resulting in

2 massive arrearages nationwide;

3 (D) excessive relitigation of cases;

4 (E) the establishment of conflicting orders

5 by the courts of various States; and

6 (F) inter-jurisdiction travel and commu7 nication that is so expensive and time consum8 ing as to disrupt parties’ occupations and com9 mercial activities; and

10 (4) among the results of these conditions are—

11 (A) the failure of the courts of such juris12 dictions to give full faith and credit to the judi13 cial proceedings of the other States;

14 (B) the deprivation of rights of liberty and

15 property without due process of law;

16 (C) burdens on commerce among the

17 States; and

18 (D) harm to the welfare of children and

19 their parents and other custodians.

20 (b) DECLARATION.—Based on the findings stated in

21 subsection (a), it is necessary to establish national stand22 ards under which the courts of each State will determine

23 their jurisdiction to establish, enforce, or modify a child

24 support order, or to determine parentage and the effect
228

•HR 2790 IH

1 to be given by each State to such determinations by the

2 courts of other States.

3 (c) PURPOSES.—The purposes of this Act are to—

4 (1) expand the forums available to establish,

5 enforce, or modify a child support order, or to deter6 mine parentage so that such actions may be heard

7 in the State that has the strongest interest in the

8 child’s financial security;

9 (2) promote and expand the exchange of infor10 mation and other forms of mutual assistance be11 tween States that are concerned with the same child;

12 (3) facilitate the enforcement of support decrees

13 among the States;

14 (4) discourage continuing interstate controver15 sies over child support in the interest of greater fi16 nancial stability and secure family relationships for

17 the child; and

18 (5) avoid jurisdictional competition and conflict

19 between courts in matters relating to the establish20 ment, enforcement, and modification of child support

21 orders, and to the determination of parentage, which

22 have resulted in the movement of parties among

23 States and a low percentage of interstate cases with

24 support orders, thereby adversely affecting children’s

25 well-being.
229

•HR 2790 IH

1 (d) STATE.—For purposes of this section, the term

2 ‘‘State’’ means the several States, the District of Colum3 bia, the Commonwealth of Puerto Rico, the territories and

4 possessions of the United States, and Indian country (as

5 defined in section 1151 of title 18, United States Code).

6 PART C—BANKRUPTCY AMENDMENTS RELATING

7 TO CHILD SUPPORT, ALIMONY, AND PROP8 ERTY SETTLEMENT AGREEMENTS

9 SEC. 441. EXCEPTIONS TO STAY.

10 Section 362(b)(2) of title 11, United States Code, is

11 amended to read as follows:

12 ‘‘(2) under subsection (a) of this section—

13 ‘‘(A) of the commencement or continuation

14 of an action or proceeding for—

15 ‘‘(i) the establishment of paternity; or

16 ‘‘(ii) the establishment or modification

17 of an order for alimony, maintenance, or

18 support; or

19 ‘‘(B) of the collection of—

20 ‘‘(i) alimony, maintenance, or support

21 from property that is not property of the

22 estate; or

23 ‘‘(ii) a debt of the kind specified in

24 section 523(a)(5) of this title to a child of
230

•HR 2790 IH

1 the debtor if the claim for such debt arises

2 after the commencement of the case;’’.

3 SEC. 442. PRIORITY.

4 Section 507(a) of title 11, United States Code, is

5 amended—

6 (1) in paragraph (8) by striking ‘‘(8) Eighth’’

7 and inserting ‘‘(9) Ninth’’,

8 (2) in paragraph (7) by striking ‘‘(7) Seventh’’

9 and inserting ‘‘(8) Eighth’’, and

10 (3) by inserting after paragraph (6) the follow11 ing:

12 ‘‘(7) Seventh, allowed claims of the kind speci13 fied in section 523(a)(5) of this title.’’.

14 SEC. 443. EXEMPTIONS.

15 Section 522(f) of title 11, United States Code, is

16 amended—

17 (1) in paragraph (2)(C) by striking the period

18 at the end and inserting a semicolon, and

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

20 ‘‘and does not secure a claim for a debt of a kind specified

21 in section 523(a)(5) of this title.’’.

22 SEC. 444. EXCEPTION TO DISCHARGE.

23 Section 523(a)(5) of title 11, United States Code, is

24 amended to read as follows:
231

•HR 2790 IH

1 ‘‘(5) to a spouse, former spouse, or child of the

2 debtor—

3 ‘‘(A) for alimony to, maintenance for, or

4 support of such spouse or child, in connection

5 with a separation agreement, divorce decree or

6 other order of a court of record, determination

7 made in accordance with State or territorial law

8 by a governmental unit, or property settlement

9 agreement, but not the extent that such debt

10 includes a liability designated as alimony, main11 tenance, or support, unless such liability is ac12 tually in the nature of alimony, maintenance, or

13 support; or

14 ‘‘(B) for any liability under the terms of a

15 property settlement agreement entered into in

16 connection with a separation agreement or di17 vorce decree;

18 except to the extent such debt is assigned to another

19 entity, voluntarily, by operation of law, or otherwise

20 (other than debts assigned pursuant to section

21 402(a)(26) of the Social Security Act, or any such

22 debt which has been assigned to the Federal Govern23 ment or to a State or any political subdivision of

24 such State).’’.
232

•HR 2790 IH

1 SEC. 445. PREFERENCES.

2 Section 547(c) of title 11, United States Code,

3 is amended—

4 (1) in paragraph (6) by striking ‘‘or’’ at

5 the end,

6 (2) by redesignating paragraph (7) as

7 paragraph (8), and

8 (3) by inserting after paragraph (6) the

9 following:

10 ‘‘(7) to the extent such transfer was a bona fide

11 payment of a debt of a kind specified in section

12 523(a)(5) of this title; or’’.

13 SEC. 446. PROPERTY OF THE ESTATE.

14 (a) PROPERTY UNDER CHAPTER 12.—Paragraphs

15 (1) and (2) of section 1207(a) of title 11, United States

16 Code, are amended by striking ‘‘but’’ and all that follows

17 through ‘‘first’’, and inserting the following:

18 ‘‘until the plan is confirmed, except that such prop19 erty as is necessary to fund the plan and is specified

20 in the plan or order confirming the plan shall re21 main property of the estate’’.

22 (b) PROPERTY UNDER CHAPTER 13.—Paragraphs

23 (1) and (2) of section 1306(a) of title 11, United States

24 Code, are amended by striking ‘‘but’’ and all that follows

25 through ‘‘first’’, and inserting the following:
233

•HR 2790 IH

1 ‘‘until the plan is confirmed, except that such prop2 erty as is necessary to fund the plan and is specified

3 in the plan or order confirming the plan shall re4 main property of the estate’’.

5 SEC. 447. CONFIRMATION OF PLAN.

6 (a) CONFIRMATION UNDER CHAPTER 12.—Section

7 1225(a) of title 11, United States Code, is amended—

8 (1) in paragraph (5) by striking ‘‘and’’ at the

9 end,

10 (2) by redesignating paragraph (6) as para11 graph (7), and

12 (3) by inserting after paragraph (5) the follow13 ing:

14 ‘‘(6) the debtor has paid all allowable claims

15 arising after the order for relief for debts of the

16 kinds specified in section 523(a)(5) of this title;

17 and’’.

18 (b) CONFIRMATION UNDER CHAPTER 13.—Section

19 1325(a) of title 11, United States Code, is amended—

20 (1) in paragraph (5)(C) by striking ‘‘and’’ at

21 the end,

22 (2) by redesignating paragraph (6) as para23 graph (7), and

24 (3) by inserting after paragraph (5) the follow25 ing:
234

•HR 2790 IH

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 SEC. 448. EXEMPTION.

6 Representatives of child support creditors shall be

7 permitted to appear and intervene without charge, and

8 without meeting any special local court rule requirement

9 for attorney appearances, in any bankruptcy proceeding

10 in any bankruptcy court or district court of the United

11 States if such representatives file a form in such court

12 that contains information detailing the child support debt,

13 its status, and other characteristics.

14 SEC. 449. EFFECTIVE DATE; APPLICATION OF AMEND15 MENTS.

16 (a) EFFECTIVE DATE.—Except as provided in sub17 section (b), this title and the amendments made by this

18 title shall take effect on the date of the enactment of this

19 Act.

20 (b) APPLICATION OF AMENDMENTS.—The amend21 ments made by this title shall not apply with respect to

22 cases commenced under title 11 of the United States Code

23 before the date of the enactment of this Act.
235

•HR 2790 IH

1 PART D—LOCATE AND CASE TRACKING

2 SEC. 451. EXPANSION OF FUNCTIONS OF FEDERAL PARENT

3 LOCATOR SERVICE.

4 (a) IN GENERAL.—Section 453 (42 U.S.C. 653) is

5 amended—

6 (1) in subsection (a), by striking ‘‘enforcing

7 support obligations against such parent’’ and insert8 ing ‘‘establishing parentage, establishing, modifying,

9 and enforcing child support obligations, and enforc10 ing child visitation rights and responsibilities, and

11 which shall use safeguards to prevent the disclosure

12 of information in cases that would jeopardize the

13 safety of the custodial parent or any child of the

14 custodial parent’’;

15 (2) in subsection (b), by inserting after the 2nd

16 sentence the following: ‘‘Information with respect to

17 an absent parent shall not be disclosed to any person

18 if the disclosure would jeopardize the safety of the

19 custodial parent or any child of the custodial parent.

20 Information with respect to an absent parent shall

21 not be disclosed to any person (other than the custo22 dial parent) unless the custodial parent has been no23 tified in advance of the disclosure.’’; and

24 (3) in subsection (d), by inserting ‘‘and such

25 reasonable fees’’ after ‘‘such documents’’.
236

•HR 2790 IH

1 (b) SENSE OF THE CONGRESS.—It is the sense of

2 the Congress that—

3 (1) the denial of visitation rights under a child

4 support order should be treated as irrelevant in any

5 action brought to enforce the support provisions of

6 the order; and

7 (2) the failure to pay child support pursuant to

8 a child support order should be treated as irrelevant

9 in any action brought to enforce visitation rights

10 under the order.

11 SEC. 452. EXPANSION OF DATA BASES ACCESSED BY PAR12 ENT LOCATOR SYSTEMS.

13 (a) ADDITIONAL INFORMATION FOR FEDERAL PAR14 ENT LOCATOR SERVICE.—Section 453 (42 U.S.C. 653) is

15 amended—

16 (1) in subsection (b), by striking ‘‘the most re17 cent address and place of employment’’ and insert18 ing ‘‘the most recent residential address, employer

19 name and address, and amounts and nature of in20 come and assets’’;

21 (2) in subsection (c)(3), by striking ‘‘the resi22 dent parent’’ and inserting ‘‘either parent’’; and

23 (3) in subsection (e), by adding at the end the

24 following:
237

•HR 2790 IH

1 ‘‘(4) The Secretary of the Treasury shall enter into

2 an agreement with the Secretary to provide prompt access

3 by the Secretary (in accordance with this subsection and

4 section 6103(l)(6) of the Internal Revenue Code of 1986)

5 to the quarterly estimated Federal income tax returns

6 filed by individuals with the Internal Revenue Service.’’.

7 (b) STATE INFORMATION.—Section 466(a) (42

8 U.S.C. 666(a)) is amended by inserting after paragraph

9 (10) the following:

10 ‘‘(11) Procedures under which the State child

11 support enforcement agency shall have automated

12 on-line or batch access (or, if necessary,

13 nonautomated access) to information regarding resi14 dential addresses, employers and employer address15 es, income and assets, and medical insurance bene16 fits with respect to absent parents that is available

17 through any data base maintained by—

18 ‘‘(A) any agency of the State or any politi19 cal subdivision thereof, that contains informa20 tion on residential addresses, or on employers

21 and employer addresses, as the State deems ap22 propriate;

23 ‘‘(B) any publicly regulated utility com24 pany located in the State;
238

•HR 2790 IH

1 ‘‘(C) any credit reporting agency located in

2 the State; and

3 ‘‘(D) any trade or labor union located in

4 the State.

5 ‘‘(12) Procedures under which the State child

6 support enforcement agency shall—

7 ‘‘(A) maintain a child support order reg8 istry which shall include each child support

9 order (or an abstract thereof) issued or modi10 fied in the State on or after the effective date

11 of this paragraph; and

12 ‘‘(B) transmit electronically to the Office

13 of Child Support Enforcement an abstract of

14 each such order, containing such information

15 and in such form as the Secretary may pre16 scribe pursuant to section 452(a)(11).’’.

17 (c) FEDERAL REGISTRY OF ABSTRACTS OF CHILD

18 SUPPORT ORDERS.—Section 452(a) (42 U.S.C 652(a)),

19 as amended by section 472(a) of this Act, is amended—

20 (1) in paragraph (10), by striking ‘‘and’’ after

21 the semicolon;

22 (2) in paragraph (11), 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:
239

•HR 2790 IH

1 ‘‘(12) maintain a registry of all child support

2 order abstracts received from States pursuant to

3 section 466(a)(12)(B).’’.

4 (d) SENSE OF THE CONGRESS.—It is the sense of

5 the Congress that the Secretary of Health and Human

6 Services should investigate, pursuant to section 453(e) of

7 the Social Security Act, accessing Federal data banks that

8 are not linked to the Parent Locator Service which are

9 more than marginally useful in locating absent parents.

10 SEC. 453. EXPANSION OF ACCESS TO NATIONAL NETWORK

11 FOR LOCATION OF PARENTS.

12 (a) IN GENERAL.—Section 453 (42 U.S.C. 653) is

13 amended by adding at the end the following:

14 ‘‘(g) The Secretary shall expand the Parent Locator

15 Service to establish a national network based on the com16 prehensive statewide child support enforcement systems

17 developed by the States, to—

18 ‘‘(1) allow each State to—

19 ‘‘(A) locate any absent parent who owes

20 child support, for whom a child support obliga21 tion is being established, or for whom an order

22 for visitation is being enforced, by—

23 ‘‘(i) accessing the records of other

24 State agencies and sources of locate infor-
240

•HR 2790 IH

1 mation directly from one computer system

2 to another; and

3 ‘‘(ii) accessing Federal sources of lo4 cate information in the same fashion;

5 ‘‘(B) access the files of other States to de6 termine whether there are other child support

7 orders and obtain the details of those orders;

8 ‘‘(C) provide for both on-line and batch

9 processing of locate requests, with on-line ac10 cess restricted to cases in which the information

11 is needed immediately (for such reasons as

12 court appearances) and batch processing used

13 to ‘troll’ data bases to locate individuals or up14 date information periodically; and

15 ‘‘(D) direct locate requests to individual

16 States or Federal agencies, broadcast requests

17 to selected States, or broadcast cases to all

18 States when there is no indication of the source

19 of needed information;

20 ‘‘(2) provide for a maximum of 48-hour turn21 around time for information to be broadcast and re22 turned to a requesting State;

23 ‘‘(3) provide ready access to courts of the infor24 mation on the network by location of a computer

25 terminal in each court; and
241

•HR 2790 IH

1 ‘‘(4) access the registry of child support orders

2 for public and private cases maintained at the State

3 level by the State agencies as described in section

4 466(a)(12).’’.

5 (b) EXPANDED STATE INTERACTION WITH NA6 TIONAL NETWORK.—Section 454(16) (42 U.S.C.

7 654(16)) is amended—

8 (1) by striking ‘‘and (E)’’ and inserting ‘‘(E)’’;

9 and

10 (2) by striking ‘‘enforcement;’’ and inserting

11 ‘‘enforcement, and (F) to provide access to the na12 tional network developed pursuant to section

13 453(g);’’.

14 (c) SENSE OF THE CONGRESS.—It is the sense of the

15 Congress that the national network established under sec16 tion 453(g) of the Social Security Act should be used to

17 access State records only through the agency that admin18 isters the State plan approved under part D of title IV

19 of such Act.

20 SEC. 454. PRIVATE ACCESS TO LOCATE AND ENFORCEMENT

21 SERVICES.

22 Section 466(a) (42 U.S.C. 666(a)), as amended by

23 section 452(b) of this Act, is amended by inserting after

24 paragraph (12) the following:
242

•HR 2790 IH

1 ‘‘(13)(A) Procedures under which private attor2 neys and pro se obligees must be given access to

3 State locate resources and through enforcement

4 techniques of the State child support enforcement

5 agency, for the purpose of establishing, modifying,

6 and enforcing child support, visitation, and parent7 age orders, in accordance with safeguards estab8 lished—

9 ‘‘(i) to provide the custodial parent ad10 vance notice of any release of information with

11 respect to a noncustodial parent; and

12 ‘‘(ii) to prevent release of information with

13 respect to a noncustodial parent if the release

14 may jeopardize the safety of the noncustodial

15 parent, the custodial parent, or any child of ei16 ther parent; and

17 ‘‘(B) The procedures described in subparagraph

18 (A) must require the State—

19 ‘‘(i) to develop and publish guidelines im20 plementing the safeguards described in sub21 paragraph (A); and

22 ‘‘(ii) if the State provides for reasonable

23 fees for the access referred to in subparagraph

24 (A), to establish such fees in accordance with
243

•HR 2790 IH

1 guidelines developed and published by the State

2 that set schedules for such fees.’’.

3 SEC. 455. NATIONAL REPORTING OF NEW HIRES AND CHILD

4 SUPPORT INFORMATION.

5 (a) FEDERAL IMPLEMENTATION OF SYSTEM.—

6 (1) IN GENERAL.—The Secretary of the Treas7 ury, in consultation with the Secretary of Labor,

8 shall establish a system of reporting of new employ9 ees by requiring employers to provide a copy of every

10 new employee’s W–4 form to the employment secu11 rity agency of the State in which the employment is

12 located.

13 (2) EXPANDED USE OF FORM.—The Secretary

14 of the Treasury shall modify the W–4 form to be

15 completed by a new employee to enable the employee

16 to indicate on the form—

17 (A) whether the employee owes child sup18 port, and if so—

19 (i) to whom the support is payable

20 and the amount of the support payable;

21 and

22 (ii) whether the support is to be paid

23 through wage withholding; and

24 (B) whether health care insurance is avail25 able to the new employee, and, if so, whether
244

•HR 2790 IH

1 the new employee has obtained such insurance

2 for the dependent children of the new employee.

3 (3) EMPLOYER WITHHOLDING OBLIGATION.—

4 (A) IN GENERAL.—Subtitle C of the Inter5 nal Revenue Code of 1986 (relating to employ6 ment taxes) is amended by inserting after chap7 ter 24 the following new chapter:

8 ‘‘CHAPTER 24A—COLLECTION OF CHILD

9 SUPPORT OBLIGATIONS AT SOURCE

10 ON WAGES

‘‘Sec. 3411. Child support obligations collected at source.

11 ‘‘SEC. 3411. CHILD SUPPORT OBLIGATIONS COLLECTED AT

12 SOURCE.

13 ‘‘(a) REQUIREMENT OF WITHHOLDING.—Every em14 ployer making payment of wages shall deduct and with15 hold upon such wages a specified child support obligation

16 amount.

17 ‘‘(b) SPECIFIED CHILD SUPPORT OBLIGATION

18 AMOUNT.—For purposes of this chapter, the specified

19 child support obligation amount with respect to any em20 ployee shall be determined based on—

21 ‘‘(1) information provided by the employee, or

22 (if an agency of the State in which the employer is

23 located notifies the employer that such information
245

•HR 2790 IH

1 is inaccurate) information provided by the agency;

2 and

3 ‘‘(2) information contained in any wage with4 holding order received by the employer from any

5 State.

6 ‘‘(c) LIABILITY FOR PAYMENT.—The employer shall

7 be liable for the payment of the specified child support

8 obligation amount to the payee identified by the employee.

9 ‘‘(d) SPECIAL RULES.—For purposes of this chapter

10 (and so much of subtitle F as relates to this chapter), any

11 specified child support obligation amount shall be treated

12 as if it were a tax withheld under chapter 24 and rules

13 similar to the rules of such chapter shall apply.’’

14 (B) CLERICAL AMENDMENT.—The table of

15 chapters of subtitle C of the Internal Revenue

16 Code of 1986 is amended by inserting after the

17 item relating to chapter 24 the following new

18 item:

‘‘CHAPTER 24A. Child support obligations collected at source.’’

19 (4) WITHHELD CHILD SUPPORT OBLIGATIONS

20 REPORTED ON W–2 FORMS.—Subsection (a) of sec21 tion 6051 of the Internal Revenue Code of 1986 (re22 lating to receipts for employees) is amended by

23 striking ‘‘and’’ at the end of paragraph (8), by strik24 ing the period at the end of paragraph (9) and in-
246

•HR 2790 IH

1 serting ‘‘, and’’, and by inserting after paragraph

2 (9) the following new paragraph:

3 ‘‘(10) the total amount of specified child sup4 port obligations withheld under section 3411.’’

5 (b) STATE IMPLEMENTATION OF SYSTEM.—Section

6 466(a) (42 U.S.C. 666(a)), as amended by section 454

7 of this Act, is amended by inserting after paragraph (13)

8 the following:

9 ‘‘(14) Procedures under which the State shall—

10 ‘‘(A) use the Parent Locator Service estab11 lished under section 453 to access information

12 in the national registry of child support orders

13 maintained pursuant to section 452(a)(12) with

14 respect to new employee, compare such infor15 mation with the information reported on W–4

16 forms of new employees, and identify child sup17 port obligations not reported on such forms;

18 ‘‘(B) if child support information from the

19 W–4 form of a new employee agrees with infor20 mation with respect to the new employee in the

21 national registry of child support orders main22 tained pursuant to section 452(a)(12), notify

23 the individual owed the support (or the individ24 ual’s designee) of such information;
247

•HR 2790 IH

1 ‘‘(C) notify an employer of any new em2 ployee who has not reported on the W–4 form

3 a child support obligation of the new employee,

4 using the wage withholding order developed

5 under section 452(a)(14);

6 ‘‘(D) impose monetary penalties on—

7 ‘‘(i) any individual who owes child

8 support and fails to report the obligation

9 to provide the support on a Federal income

10 tax W–4 form at time of employment;

11 ‘‘(ii) any employer who fails to for12 ward a W–4 form for a new employee to

13 the State employment security agency

14 within 10 calendar days of the date of the

15 first payroll from which the new employee

16 is paid; and

17 ‘‘(iii) any employer who fails to with18 hold from the pay of any new employee

19 who reports a child support obligation on

20 a W–4 form an amount equal to the sup21 port owed, or fails to pay to the individual

22 owed the obligation the amount so with23 held, within 10 calendar days of the date

24 of the payroll, using electronic funds trans-
248

•HR 2790 IH

1 fer, if possible, unless otherwise notified by

2 a State agency;

3 ‘‘(E) provide the services described in this

4 paragraph to any individual owed child support

5 who applies for assistance under the State plan;

6 and

7 ‘‘(F) on request of another State, broad8 cast over the Parent Locator Service to such

9 other State child support information from W–

10 4 forms that have been sent to the State em11 ployment security agency.’’.

12 SEC. 456. ACCESS TO LAW ENFORCEMENT RECORDS SYS13 TEMS.

14 (a) ACCESS BY CHILD SUPPORT ENFORCEMENT

15 AGENCIES.—The head of the National Criminal Informa16 tion Center, the head of the National Law Enforcement

17 Telecommunications Network, and the head of any other

18 national or regional system for tracking individuals shall

19 each—

20 (1) allow Federal, State, and local child support

21 enforcement agencies access to the information of

22 the system for purposes of establishing paternity or

23 a child support obligation of an individual tracked

24 by the system, using appropriate safeguards to pre25 vent improper release of such information; and
249

•HR 2790 IH

1 (2) if an access code is required to gain such

2 access, provide the access code to each child support

3 enforcement agency that applies for the code.

4 (b) LOSS OF FEDERAL FUNDING.—A non-Federal

5 system for tracking individuals that fails to comply with

6 paragraphs (1) and (2) of subsection (a) shall not be eligi7 ble to receive Federal funding for the system.

8 SEC. 457. BROADCASTING OF WARRANTS ON STATE NET9 WORKS.

10 Section 466(a) (42 U.S.C. 666(a)), as amended by

11 section 455 of this Act, is amended by inserting after

12 paragraph (14) the following:

13 ‘‘(15) Procedures under which the State—

14 ‘‘(A) shall broadcast on any State or local

15 crime information system each failure-to-appear

16 warrant, capias, and bench warrant issued by a

17 State court in any proceeding related to child

18 support; and

19 ‘‘(B) shall, in a criminal case, remit to any

20 individual to whom the defendant owes child

21 support any security posted by or on behalf of

22 the defendant and forfeited, to the extent of

23 any arrearage in the payment of the support.’’.
250

•HR 2790 IH

1 SEC. 458. CASE MONITORING.

2 Section 454(16)(E) (42 U.S.C. 654(16)(E)) is

3 amended by inserting ‘‘, not less frequently that once

4 every 3 years’’ before the semicolon.

5 SEC. 459. ACCESS TO FINANCIAL RECORDS.

6 Section 466(a) (42 U.S.C. 666(a)), as amended by

7 section 455 of this Act, is amended by inserting after

8 paragraph (15) the following:

9 ‘‘(16) Procedures under which the State may

10 obtain access to financial records maintained with

11 respect to any person by any financial institution

12 doing business in the State, for the purpose of estab13 lishing or enforcing a child support obligation of the

14 person.’’.

15 PART E—ESTABLISHMENT

16 SEC. 461. INTERSTATE RECOGNITION OF CHILD SUPPORT

17 AND PARENTAGE ORDERS.

18 (a) IN GENERAL.—Chapter 115 of title 28, United

19 States Code, is amended by inserting after section 1738A

20 the following:

21 ‘‘§ 1738B. Full faith and credit to child support and

22 parentage orders

23 ‘‘(a) DEFINITIONS.—As used in this section:

24 ‘‘(1) The term ‘child’ means any individual who

25 has not attained the age of 18 years, and any indi26 vidual who has attained the age of 18 years for
251

•HR 2790 IH

1 whom a child support order has been issued pursu2 ant to the laws of a State.

3 ‘‘(2) The term ‘child support’ includes periodic

4 and lump-sum payments for current and past due

5 economic support, payments of premiums for health

6 insurance for children, payments for or provision of

7 child care, and payments for educational expenses.

8 ‘‘(3) The term ‘child support order’ means a

9 judgment, decree or order of a court requiring the

10 payment of money, whether in periodic amounts or

11 lump sum, for the support of a child and includes

12 permanent and temporary orders, initial orders and

13 modifications, ongoing support and arrearages.

14 ‘‘(4) The term ‘child’s State’ means, with re15 spect to a child, the State in which the child resides

16 with a parent or an individual acting as a parent.

17 ‘‘(5) The term ‘contestant’ means an individual,

18 including a parent, who claims a right to receive

19 child support or is under an order to pay child sup20 port, and includes States and political subdivisions

21 to which support rights have been assigned.

22 ‘‘(6) The term ‘court’ means a court, adminis23 trative process, or quasijudicial process of a State

24 that is authorized to—

25 ‘‘(A) adjudicate parentage;
252

•HR 2790 IH

1 ‘‘(B) establish the amount of support pay2 able by a contestant; or

3 ‘‘(C) modify the amount of support pay4 able by a contestant.

5 ‘‘(7) The term ‘home State’ means, with respect

6 to a child, the State in which, immediately preceding

7 the time involved, the child lived with his or her par8 ents, a parent, or an individual acting as parent, for

9 at least 6 consecutive months (including any periods

10 of temporary absence), and if the child has not at11 tained the age of 6 months, the State in which the

12 child lived from birth with any of such individuals.

13 ‘‘(8) The term ‘individual acting as a parent’

14 means an individual, other than a parent, who has

15 physical custody of a child and who has either been

16 awarded custody by a court or claims a right to cus17 tody.

18 ‘‘(9) The terms ‘modification’ and ‘modify’ refer

19 to a change in a child support order or an order ad20 judicating parentage that modifies, replaces, super21 sedes, or otherwise is made subsequent to such prior

22 order, whether or not made by the same court that

23 issued such prior order.

24 ‘‘(10) The term ‘State’ means a State of the

25 United States, the District of Columbia, the Com-
253

•HR 2790 IH

1 monwealth of Puerto Rico, a territory or possession

2 of the United States, and Indian country as defined

3 in section 1151 of title 18, United States Code.

4 ‘‘(b) FULL FAITH AND CREDIT.—The courts of each

5 State shall recognize and enforce according to its terms

6 a child support order or an order adjudicating parentage

7 against an individual over whom personal jurisdiction has

8 been exercised consistent with this section, and shall not

9 modify such an order except as provided in subsection (f).

10 ‘‘(c) BASES OF JURISDICTION.—A court of a State

11 may exercise personal jurisdiction over a nonresident con12 testant if there is any basis consistent with the constitu13 tion of the State and the Constitution of the United States

14 for the exercise.

15 ‘‘(d) CONTINUING EXCLUSIVE JURISDICTION.—A

16 court of a State which has issued a child support order

17 or an order adjudicating parentage consistent with this

18 section shall have continuing, exclusive jurisdiction of the

19 order for so long as the State remains the child’s State

20 or the residence of any contestant, unless another State,

21 acting in accordance with subsection (f), has modified the

22 order.

23 ‘‘(e) NOTICE AND HEARING.—Before a court of a

24 State makes a child support order or adjudicates parent-
254

•HR 2790 IH

1 age, reasonable notice and opportunity to be heard shall

2 be given to the contestants.

3 ‘‘(f) MODIFICATION.—A court of a State may modify

4 a child support order or an order adjudicating parentage

5 issued by a court of another State if—

6 ‘‘(1) each contestant has filed written consent

7 for the court of the State to modify the order and

8 assume continuing, exclusive jurisdiction of the

9 order; and

10 ‘‘(2) the court of the State otherwise has juris11 diction to issue such an order.

12 ‘‘(g) ENFORCEMENT OF PRIOR ORDERS.—A court of

13 a State which no longer has continuing, exclusive jurisdic14 tion of a child support order or an order adjudicating par15 entage may enforce the order with respect to unsatisfied

16 obligations which accrued before the date the order is

17 modified in accordance with subsection (f).

18 ‘‘(h) WITHHOLDING EXERCISE OF JURISDICTION.—

19 A court of a State shall not exercise jurisdiction in any

20 proceeding for a child support order or an adjudication

21 of parentage commenced during the pendency of a pro22 ceeding in a court of another State when the court of the

23 other State is exercising jurisdiction consistent with this

24 section unless—
255

•HR 2790 IH

1 ‘‘(1) the proceeding was filed in the State be2 fore the expiration of time allowed in the other State

3 for filing a responsive pleading challenging the exer4 cise of jurisdiction by the other State;

5 ‘‘(2) the contesting party timely challenges the

6 exercise of jurisdiction by the other State; and

7 ‘‘(3) if applicable, the court is in the home

8 State of the child.

9 ‘‘(i) CHOICE OF LAW.—(1) Except as provided in

10 paragraphs (2) and (3), the forum State’s law shall apply

11 in a proceeding to establish, modify, or enforce a child

12 support order or an order adjudicating parentage.

13 ‘‘(2) The courts of a State shall apply the law of the

14 State that issued a child support order or an order adju15 dicating parentage in interpreting such an order.

16 ‘‘(3) In an action to enforce a child support order

17 or an order adjudicating parentage, the statute of limita18 tions under the laws of the forum State or the issuing

19 State, whichever is longer, shall apply.’’.

20 (b) CLERICAL AMENDMENT.—The chapter analysis

21 for such chapter is amended by inserting after the item

22 relating to section 1738A the following:

‘‘1738B. Full faith and credit to child support and parentage orders.’’.
256

•HR 2790 IH

1 SEC. 462. SERVICE OF PROCESS ON FEDERAL EMPLOYEES

2 AND MEMBERS OF THE ARMED SERVICES IN

3 CONNECTION WITH PROCEEDINGS RELATING

4 TO CHILD SUPPORT AND PARENTAGE OBLI5 GATIONS.

6 Part D of title IV (42 U.S.C. 651–670) is amended

7 by inserting after section 460 the following:

8 ‘‘SEC. 460A. SERVICE OF PROCESS ON FEDERAL EMPLOY9 EES AND MEMBERS OF THE ARMED SERV10 ICES IN CONNECTION WITH PROCEEDINGS

11 RELATING TO CHILD SUPPORT AND PARENT12 AGE OBLIGATIONS.

13 ‘‘(a) IN GENERAL.—The head of each Government

14 agency shall, in accordance with applicable regulations

15 under subsection (b), designate an agent for receipt of

16 service of process, for any Federal employee or member

17 of the Armed Forces serving in or under such agency, in

18 connection with an action, brought in a court of competent

19 jurisdiction within any State, territory, or possession of

20 the United States, for obtaining a child support order or

21 for establishing parentage.

22 ‘‘(b) REGULATIONS.—Regulations governing the im23 plementation of this section with respect to the executive,

24 legislative, or judicial branch of the Government shall be

25 promulgated by the authority or authorities responsible
257

•HR 2790 IH

1 for promulgating regulations under section 461 with re2 spect to the branch of Government involved.

3 ‘‘(c) INTERPRETIVE RULE.—This section shall not be

4 construed to prevent any otherwise eligible individual from

5 requesting or being granted a stay or continuance in any

6 judicial proceeding, including under the Soldiers’ and Sail7 ors’ Civil Relief Act of 1940.

8 ‘‘(d) GOVERNMENT AGENCY DEFINED.—For pur9 poses of this section, the term ‘Government agency’ means

10 each agency of the Federal Government, including—

11 ‘‘(1) an Executive agency (as defined by section

12 105 of title 5, United States Code);

13 ‘‘(2) the Department of Defense, to the extent

14 that any Federal employee serving in or under that

15 agency or any member of the armed services is in16 volved;

17 ‘‘(3) the United States Postal Service and the

18 Postal Rate Commission;

19 ‘‘(4) the government of the District of Colum20 bia;

21 ‘‘(5) an agency within the legislative or judicial

22 branch of the Government; and

23 ‘‘(6) an advisory committee to which the Fed24 eral Advisory Committee Act applies.’’.
258

•HR 2790 IH

1 SEC. 463. PRESUMED ADDRESS OF OBLIGOR AND OBLIGEE.

2 Section 466(a) (42 U.S.C. 666(a)), as amended by

3 section 457 of this Act, is amended by inserting after

4 paragraph (16) the following:

5 ‘‘(17) Procedures under which the State shall—

6 ‘‘(A) require the court or administrative

7 agency with authority to issue the final order in

8 a child support or parentage case to require

9 each party subject to the order to file with the

10 court or administrative agency, on or before the

11 date the order is issued—

12 ‘‘(i) the party’s residential address or

13 addresses;

14 ‘‘(ii) the party’s mailing address or

15 addresses;

16 ‘‘(iii) the party’s home telephone num17 ber or numbers;

18 ‘‘(iv) the party’s driver’s license num19 ber;

20 ‘‘(v) the party’s social security ac21 count number;

22 ‘‘(vi) the name of each employer of

23 the party;

24 ‘‘(vii) the addresses of each place of

25 employment of the party; and
259

•HR 2790 IH

1 ‘‘(viii) the party’s work telephone

2 number or numbers;

3 ‘‘(B) require the court or administrative

4 agency in any action related to child support to

5 presume, for the purpose of providing sufficient

6 notice (other than the initial notice in an action

7 to establish parentage or a child support order),

8 that the noncustodial parent resides at the last

9 residential address given by the noncustodial

10 parent to the court or agency, or a more recent

11 address provided in good faith by the parent

12 owed the support obligation; and

13 ‘‘(C) ensure that information concerning

14 the location of a custodial parent or a child of

15 the custodial parent is not released to a

16 noncustodial parent if a court order has been

17 issued against the noncustodial parent for the

18 physical protection of the custodial parent or

19 the child.’’.

20 SEC. 464. NOTICE TO CUSTODIAL PARENTS.

21 Section 454 (42 U.S.C. 654) is amended—

22 (1) by striking ‘‘and’’ at the end of paragraph

23 (23);

24 (2) by striking the period at the end of para25 graph (24) and inserting ‘‘; and’’; and
260

•HR 2790 IH

1 (3) by inserting after paragraph (24) the fol2 lowing:

3 ‘‘(25) provide that the agency administering the

4 plan—

5 ‘‘(A) shall make reasonable attempts to

6 provide timely notice to any individual owed

7 child support of any proceeding to establish,

8 modify, or enforce the support obligation;

9 ‘‘(B) shall not delay any such proceeding

10 solely due to the failure of the custodial parent

11 to appear; and

12 ‘‘(C) shall, within 14 days after the date

13 an order that establishes, modifies, or enforces

14 a child support obligation is issued, provide the

15 custodial parent of the child with a copy of the

16 order.’’.

17 SEC. 465. UNIFORM STATE RULES IN PARENTAGE AND

18 CHILD SUPPORT CASES.

19 Section 466(a) (42 U.S.C. 666(a)), as amended by

20 section 463 of this Act, is amended by inserting after

21 paragraph (17) the following:

22 ‘‘(18) Procedures under which, in the State—

23 ‘‘(A) a party may, in a single cause of ac24 tion, seek judicial determination of the parent-
261

•HR 2790 IH

1 age of a child and judicial establishment of a

2 child support order with respect to the child;

3 ‘‘(B) the venue for determination of par4 entage of a child shall be in the county of resi5 dence of the child;

6 ‘‘(C) a court or agency that issues a par7 entage or child support order shall have con8 tinuing and exclusive jurisdiction over the order

9 until the court or agency transfers such juris10 diction to the appropriate court or agency in

11 the county of residence of the child, or the par12 ties consent to be bound by another court or

13 agency in the State that has subject matter ju14 risdiction;

15 ‘‘(D) proceedings to enforce or modify of a

16 child support order may be transferred to the

17 city, county, or district in which the child re18 sides without any requirement that the order be

19 filed or the defendant be served again;

20 ‘‘(E) a court or agency that hears a par21 entage or child support cases shall have state22 wide jurisdiction over the parties to the case,

23 and the parentage and child support orders is24 sued by the court or agency shall have state25 wide effect for enforcement purposes; and
262

•HR 2790 IH

1 ‘‘(F) denial of visitation rights may not be

2 used as a defense in an action to enforce an ob3 ligation to provide child support and the failure

4 to provide child support may not be used as a

5 defense in an action to enforce visitation

6 rights.’’.

7 SEC. 466. FAIR CREDIT REPORTING ACT AMENDMENT.

8 Section 604 of the Consumer Credit Protection Act

9 (15 U.S.C. 1681b) is amended by adding at the end the

10 following:

11 ‘‘(4) To a State agency administering a State plan

12 under section 454 of the Social Security Act, for use to

13 establish or modify a child support award.’’.

14 SEC. 467. NATIONAL CHILD SUPPORT GUIDELINES COMMIS15 SION.

16 (a) ESTABLISHMENT.—There is hereby established a

17 commission to be known as the ‘‘National Child Support

18 Guidelines Commission’’ (in this section referred to as the

19 ‘‘Commission’’).

20 (b) GENERAL DUTIES.—The Commission shall con21 vene a conference to study the desirability of a national

22 child support guideline, and if such guideline is advisable,

23 the Commission shall develop for congressional consider24 ation a national child support guideline that is based on

25 the conference’s study of various guideline models, the de-
263

•HR 2790 IH

1 ficiencies of such models, and any needed improvements,

2 taking into consideration differences in the cost of living

3 in different areas of the United States. In developing such

4 guideline, the Commission shall consider indexing the

5 guideline to the cost of living, specifying minimum (rather

6 than maximum) amounts, or using other methodologies to

7 reflect such differences.

8 (c) MEMBERSHIP.—

9 (1) NUMBER; APPOINTMENT.—

10 (A) IN GENERAL.—The Commission shall

11 be composed of 9 individuals appointed jointly

12 by the Secretary of Health and Human Services

13 and the Congress, not later than January 15,

14 1995.

15 (B) QUALIFICATIONS OF MEMBERS.—

16 Members of the Commission shall be appointed

17 from among those who are able to provide ex18 pertise and experience in the evaluation and de19 velopment of child support guidelines.

20 (2) TERMS OF OFFICE.—Each member shall be

21 appointed for a term of 2 years. A vacancy in the

22 Commission shall be filled in the manner in which

23 the original appointment was made.

24 (d) COMMISSION POWERS, COMPENSATION, ACCESS

25 TO INFORMATION, AND SUPERVISION.—The first sentence
264

•HR 2790 IH

1 of subparagraph (C), the first and third sentences of sub2 paragraph (D), subparagraph (F) (except with respect to

3 the conduct of medical studies), clauses (ii) and (iii) of

4 subparagraph (G), and subparagraph (H) of section

5 1886(e)(6) of the Social Security Act shall apply to the

6 Commission in the same manner in which such provisions

7 apply to the Prospective Payment Assessment Commis8 sion.

9 (e) REPORT.—Not later than 2 years after the ap10 pointment of members, the Commission shall submit to

11 the President, the Committee on Ways and Means of the

12 House of Representatives, and the Committee on Finance

13 of the Senate, a report on the results of the study de14 scribed in subsection (b) and the final assessment by the

15 Commission of issues relating to a national child support

16 guideline.

17 (f) TERMINATION.—The Commission shall terminate

18 upon the submission of the report described in subsection

19 (e).

20 SEC. 468. GUIDELINE PRINCIPLES.

21 Section 467 (42 U.S.C. 667) is amended by adding

22 at the end the following:

23 ‘‘(d) The guidelines established pursuant to sub24 section (a) shall be based on, and applied in accordance

25 with, the following principles:
265

•HR 2790 IH

1 ‘‘(1) A change in the child support amount re2 sulting from the application of the guidelines since

3 the entry of the last support order is sufficient rea4 son for modification of a child support obligation

5 without the necessity of showing any other change in

6 circumstance. The State may set a minimum time7 frame between reviews of modifications based on the

8 guidelines, absent other changes in circumstances.

9 ‘‘(2) Not later than 1995, each State shall es10 tablish automatic child support order review proce11 dures based on the automated calculation of the

12 amount of support to which a child is entitled, to en13 sure that the amount is sufficient to meet the needs

14 of the child, and takes into account any changes in

15 the income of the parents of the child.

16 ‘‘(3) The State shall advise any custodial parent

17 who is not receiving aid under a State plan approved

18 under part A of the review of a child support award

19 made with respect to a child of the custodial parent,

20 of any proposed modification in the amount of the

21 award based on the review, and of the right of the

22 custodial parent to decline to seek the modification.

23 ‘‘(e) The guidelines established pursuant to sub24 section (a) may consider the treatment of the following:
266

•HR 2790 IH

1 ‘‘(1) Work-related or job-training-related child

2 care expenses of either parent for the care of chil3 dren of either parent.

4 ‘‘(2) Health insurance and related uninsured

5 health care expenses, and school expenses incurred

6 on behalf of the child for whom the child support

7 order is sought.

8 ‘‘(3) Multiple family child raising obligations

9 other than those for the child for whom the child

10 support order is sought.

11 ‘‘(f) Each State must publish the guidelines estab12 lished pursuant to subsection (a).’’.

13 SEC. 469. DURATION OF SUPPORT.

14 (a) IN GENERAL.—Section 466(a) (42 U.S.C.

15 666(a)), as amended by section 466 of this Act, is amend16 ed by inserting after paragraph (17) the following:

17 ‘‘(18) Procedures under which the State—

18 ‘‘(A) imposes on 1 or both parents of a

19 child an obligation to continue to provide sup20 port for the child until not earlier than the later

21 of the date the child attains 18 years of age or

22 the date the child is graduated from or is no

23 longer enrolled in secondary school or its equiv24 alent, unless the child is married or is otherwise
267

•HR 2790 IH

1 emancipated by a court of competent jurisdic2 tion;

3 ‘‘(B) provides that courts with jurisdiction

4 over child support cases may, in accordance

5 with criteria established by the State, order—

6 ‘‘(i) child support, payable to an adult

7 child, at least up to the age of 22 years for

8 a child enrolled in an accredited post9 secondary or vocational school or college

10 who is a student in good standing; and

11 ‘‘(ii) either or both parents to pay for

12 postsecondary school support based on

13 each parent’s financial ability to pay;

14 ‘‘(C) provides for child support to continue

15 beyond the child’s minority if the child is dis16 abled, unable to be self-supportive, and the dis17 ability arose during the child’s minority; and

18 ‘‘(D) provides that courts should consider

19 the effect of child support received on means20 tested governmental benefits and whether to

21 credit governmental benefits against a support

22 award amount.’’.

23 (b) SENSE OF THE CONGRESS.—It is the sense of

24 the Congress that, if children receive child support while

25 obtaining postsecondary education, they will attain higher
268

•HR 2790 IH

1 levels of education affording them a greater chance to

2 break the welfare cycle.

3 SEC. 470. EVIDENCE.

4 (a) NATIONAL SUBPOENA DUCES TECUM.—Section

5 452(a) (42 U.S.C. 652(a)), as amended by sections 471(a)

6 and 452(c) of this Act, is amended—

7 (1) by striking ‘‘and’’ at the end of paragraph

8 (11);

9 (2) by striking the period at the end of para10 graph (12) and inserting a semicolon; and

11 (3) by inserting after paragraph (12) the fol12 lowing:

13 ‘‘(13) develop and distribute a national sub14 poena duces tecum, which shall be designed to be

15 used by any State or local child support agency or

16 child support litigant to reach income information on

17 the prior 12 months of income or on accumulated in18 come to date of any recipient of income;

19 ‘‘(14) establish a simplified certification process

20 and admissibility procedure for out-of-State docu21 ments in child support or parentage cases.’’.

22 (b) STATE LAWS.—Section 466(a) (42 U.S.C.

23 666(a)), as amended by section 469 of this Act, is amend24 ed by inserting after paragraph (19) the following:

25 ‘‘(20) Procedures under which—
269

•HR 2790 IH

1 ‘‘(A) in a child support case in the State—

2 ‘‘(i) the subpoena duces tecum devel3 oped pursuant to section 452(a)(13) shall

4 be used, if necessary, to reach income in5 formation on the prior 12 months of in6 come or on accumulated income to date of

7 any individual;

8 ‘‘(ii) an entity that is a source of in9 come for the individual may comply with

10 such a subpoena by timely mailing the in11 formation described in the subpoena to an

12 address supplied in the subpoena;

13 ‘‘(iii) the State shall permit such a

14 subpoena to be enforced against such an

15 entity in the State, with the entity bearing

16 the burden of justifying any failure to com17 ply with the subpoena; and

18 ‘‘(iv) information supplied by an en19 tity in response to such a subpoena shall

20 be admissible to prove the truth of the in21 formation;

22 ‘‘(B) a certified copy of an out-of-State

23 order, decree, or judgment related to child sup24 port or parentage shall be admitted once of-
270

•HR 2790 IH

1 fered in the courts of the State if the order, de2 cree, or judgment is regular on its face;

3 ‘‘(C) electronically transmitted information

4 and documents faxed to a court or administra5 tive agency that contain information related to

6 the amount of a child support obligation and

7 the terms of the order imposing the obligation

8 may be offered as evidence of the amount and

9 the terms, and electronically transmitted

10 records of payment of a child support agency

11 that are regular on their face shall be admissi12 ble as evidence in a child support or parentage

13 proceeding to prove the truth of the matter as14 serted in the records;

15 ‘‘(D) out-of-State depositions, interrog16 atories, admissions of fact, and other discovery

17 documents may be offered and shall be admit18 ted in a child support or parentage proceeding

19 to prove the truth of the matters asserted in

20 the documents if regular on their face and if

21 such documents comply with the appropriate

22 discovery rule or law of the State where the dis23 covery was conducted; and

24 ‘‘(E) written, videotaped, or audiotaped

25 evidence related to a child support or parentage
271

•HR 2790 IH

1 proceeding may be offered and shall be admit2 ted to prove the truth of the matter asserted

3 therein.’’.

4 SEC. 471. TELEPHONIC APPEARANCE IN INTERSTATE

5 CASES.

6 Section 466(a) (42 U.S.C. 666(a)), as amended by

7 section 472(b) of this Act, is amended by inserting after

8 paragraph (20) the following:

9 ‘‘(21) Procedures under which the parties to an

10 interstate parentage or child support administrative

11 or judicial proceeding may appear and participate by

12 telephonic means in lieu of appearing personally.’’.

13 SEC. 472. UNIFORM TERMS IN ORDERS.

14 (a) IN GENERAL.—Section 452(a) (42 U.S.C.

15 652(a)) is amended—

16 (1) in paragraph (9), by striking ‘‘and’’ after

17 the semicolon;

18 (2) in paragraph (10), by striking the period at

19 the end of the 2nd sentence and inserting ‘‘; and’’;

20 and

21 (3) by adding at the end the following:

22 ‘‘(11) not later than 12 months after the date

23 of the enactment of this paragraph, develop, in con24 junction with State executive and judicial organiza25 tions, a uniform abstract of a child support order,
272

•HR 2790 IH

1 for use by all State courts to record, with respect to

2 each child support order in the child support order

3 registry established under section 466(a)(12)—

4 ‘‘(A) the date support payments are to

5 begin under the order;

6 ‘‘(B) the circumstances upon which sup7 port payments are to end under the order;

8 ‘‘(C) the amount of child support payable

9 pursuant to the order expressed as a sum cer10 tain to be paid on a monthly basis, arrearages

11 expressed as a sum certain as of a certain date,

12 and any payback schedule for the arrearages;

13 ‘‘(D) whether the order awards support in

14 a lump sum (nonallocated) or per child;

15 ‘‘(E) if the award is in a lump sum, the

16 event causing a change in the support award

17 and the amount of any change;

18 ‘‘(F) other expenses covered by the order;

19 ‘‘(G) the names of the parents subject to

20 the order;

21 ‘‘(H) the social security account numbers

22 of the parents;

23 ‘‘(I) the name, date of birth, and social se24 curity account number (if any) of each child

25 covered by the order;
273

•HR 2790 IH

1 ‘‘(J) the identification (FIPS code, name,

2 and address) of the court that issued the order;

3 ‘‘(K) any information on health care sup4 port required by the order; and

5 ‘‘(L) the party to contact if additional in6 formation is obtained.’’.

7 (b) EFFECTIVE DATE.—The amendments made by

8 subsection (a) shall take effect on the date of the enact9 ment of this Act.

10 SEC. 473. SOCIAL SECURITY NUMBERS ON MARRIAGE LI11 CENSES, DIVORCE DECREES, PARENTAGE DE12 CREES, AND BIRTH CERTIFICATES.

13 Section 466(a) (42 U.S.C. 666(a)), as amended by

14 section 472 of this Act, is amended by inserting after

15 paragraph (21) the following:

16 ‘‘(22) Procedures under which the social secu17 rity account number (if any) of—

18 ‘‘(A) each individual applying for a mar19 riage license is to be listed by the individual’s

20 name on the license;

21 ‘‘(B) each party granted a divorce decree is

22 to be listed by the party’s name on the decree,

23 if any party to the decree is pregnant or a par24 ent; and
274

•HR 2790 IH

1 ‘‘(C) each individual determined to be a

2 parent of a child in an action to establish par3 entage is to be listed by the individual’s name

4 on the decree containing the determination; and

5 ‘‘(D) each parent of a child is to be listed

6 by the parent’s name on the child’s birth certifi7 cate.’’.

8 SEC. 474. ADMINISTRATIVE SUBPOENA POWER.

9 Section 466(a) (42 U.S.C. 666(a)), as amended by

10 section 474 of this Act, is amended by inserting after

11 paragraph (22) the following:

12 ‘‘(23) Procedures under which the State child

13 support enforcement agency may issue a subpoena

14 which—

15 ‘‘(A) requires the individual served to

16 produce and deliver documents to, or to appear

17 at, a court or administrative agency on a cer18 tain date; and

19 ‘‘(B) penalizes an individual for failing to

20 comply with the subpoena.’’.

21 SEC. 475. LEGAL ASSISTANCE PROGRAMS.

22 (a) USE OF FUNDS FOR CHILD SUPPORT CASES.—

23 The Legal Services Corporation shall ensure that at least

24 10 percent of the funds it provides to each recipient in
275

•HR 2790 IH

1 a fiscal year be used to assist eligible clients to obtain child

2 support to which they may be entitled.

3 (b) DEFINITIONS.—For purposes of this section—

4 (1) the term ‘‘child support’’ means a payment

5 of money or provision of a benefit for the support

6 of a child, and includes periodic and lump-sum pay7 ments for current and past due economic support,

8 payments of premiums for health insurance for chil9 dren, payments for or provision of child care, and

10 payments for educational expenses; and

11 (2) the term ‘‘eligible client’’ has the meaning

12 given that term in section 1002(3) of the Legal

13 Services Corporation Act (42 U.S.C. 2996a(3)).

14 SEC. 476. INDIAN CHILD SUPPORT.

15 (a) SENSE OF THE CONGRESS.—It is the sense of the

16 Congress that—

17 (1) children residing on Indian reservations be

18 accorded the same right of support that is currently

19 afforded off-reservation children; and

20 (2) State and tribal governments should, to the

21 greatest extent possible, ensure that jurisdictional is22 sues do not prevent any Indian child, on- or off-res23 ervation, from receiving support to which the child

24 is entitled.
276

•HR 2790 IH

1 (b) FULL FAITH AND CREDIT OF SUPPORT OR2 DERS.—The Indian Child Welfare Act of 1978 (25 U.S.C.

3 1901 et seq.) is amended by adding at the end the follow4 ing:

5 ‘‘TITLE IV—INDIAN CHILD

6 SUPPORT

7 ‘‘SEC. 401. FULL FAITH AND CREDIT.

8 ‘‘(a) Every Indian tribe shall give full faith and credit

9 to the public acts, records, and judicial proceedings of the

10 United States, every State, and every territory or posses11 sion of the United States applicable to Indian child sup12 port proceedings to the same extent that the Indian tribe

13 gives full faith and credit to public acts, records, and judi14 cial proceedings of any other entity pursuant to section

15 101(d) of this Act.

16 ‘‘(b) The United States, every State, every territory

17 or possession of the United States, and every Indian tribe

18 shall give full faith and credit to the public acts, records,

19 and judicial proceedings of any Indian tribe applicable to

20 Indian child support proceedings to the same extent that

21 such entities give full faith and credit to public acts,

22 records, and judicial proceedings of any other entity.’’.
277

•HR 2790 IH

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
278

•HR 2790 IH

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
279

•HR 2790 IH

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.’’.
280

•HR 2790 IH

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
281

•HR 2790 IH

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
282

•HR 2790 IH

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;
283

•HR 2790 IH

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
284

•HR 2790 IH

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-
285

•HR 2790 IH

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
286

•HR 2790 IH

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-
287

•HR 2790 IH

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.
288

•HR 2790 IH

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—
289

•HR 2790 IH

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.
290

•HR 2790 IH

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—
291

•HR 2790 IH

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:
292

•HR 2790 IH

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-
293

•HR 2790 IH

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-
294

•HR 2790 IH

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
295

•HR 2790 IH

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:
296

•HR 2790 IH

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
297

•HR 2790 IH

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:
298

•HR 2790 IH

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
299

•HR 2790 IH

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
300

•HR 2790 IH

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.’’.
301

•HR 2790 IH

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.
302

•HR 2790 IH

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.’’.
303

•HR 2790 IH

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).’’.
304

•HR 2790 IH

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—
305

•HR 2790 IH

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);
306

•HR 2790 IH

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
307

•HR 2790 IH

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.).’’.
308

•HR 2790 IH

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:
309

•HR 2790 IH

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
310

•HR 2790 IH

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-
311

•HR 2790 IH

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
312

•HR 2790 IH

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
313

•HR 2790 IH

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
314

•HR 2790 IH

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.
315

•HR 2790 IH

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
316

•HR 2790 IH

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.
317

•HR 2790 IH

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:
318

•HR 2790 IH

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:
319

•HR 2790 IH

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
320

•HR 2790 IH

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
321

•HR 2790 IH

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
322

•HR 2790 IH

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
323

•HR 2790 IH

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-
324

•HR 2790 IH

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.’’.
325

•HR 2790 IH

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-
326

•HR 2790 IH

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’’.
327

•HR 2790 IH

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
328

•HR 2790 IH

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—
329

•HR 2790 IH

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-
330

•HR 2790 IH

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
331

•HR 2790 IH

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—
332

•HR 2790 IH

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
333

•HR 2790 IH

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
334

•HR 2790 IH

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.
335

•HR 2790 IH

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
336

•HR 2790 IH

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
337

•HR 2790 IH

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
338

•HR 2790 IH

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
339

•HR 2790 IH

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—
340

•HR 2790 IH

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-
341

•HR 2790 IH

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
342

•HR 2790 IH

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
343

•HR 2790 IH

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
344

•HR 2790 IH

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
345

•HR 2790 IH

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:
346

•HR 2790 IH

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
347

•HR 2790 IH

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
348

•HR 2790 IH

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
349

•HR 2790 IH

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
350

•HR 2790 IH

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
351

•HR 2790 IH

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
352

•HR 2790 IH

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
353

•HR 2790 IH

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.
354

•HR 2790 IH

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;
355

•HR 2790 IH

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
356

•HR 2790 IH

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.
357

•HR 2790 IH

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 of 1993’’.

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.—
358

•HR 2790 IH

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
359

•HR 2790 IH

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.
360

•HR 2790 IH

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—
361

•HR 2790 IH

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
362

•HR 2790 IH

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-
363

•HR 2790 IH

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.
364

•HR 2790 IH

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.—
365

•HR 2790 IH

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-
366

•HR 2790 IH

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:
367

•HR 2790 IH

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.—
368

•HR 2790 IH

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
369

•HR 2790 IH

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;
370

•HR 2790 IH

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-
371

•HR 2790 IH

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 of 1993’’.

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
372

•HR 2790 IH

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-
373

•HR 2790 IH

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
374

•HR 2790 IH

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).
375

•HR 2790 IH

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.
376

•HR 2790 IH

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
377

•HR 2790 IH

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).
378

•HR 2790 IH

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
379

•HR 2790 IH

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,
380

•HR 2790 IH

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,
381

•HR 2790 IH

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
382

•HR 2790 IH

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-
383

•HR 2790 IH

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
384

•HR 2790 IH

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
385

•HR 2790 IH

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.
386

•HR 2790 IH

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
387

•HR 2790 IH

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
388

•HR 2790 IH

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-
389

•HR 2790 IH

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 of 1993’’.

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—
390

•HR 2790 IH

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-
391

•HR 2790 IH

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.
392

•HR 2790 IH

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
393

•HR 2790 IH

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.
394

•HR 2790 IH

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.
395

•HR 2790 IH

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
396

•HR 2790 IH

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
397

•HR 2790 IH

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).
398

•HR 2790 IH

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)’’.
399

•HR 2790 IH

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-
400

•HR 2790 IH

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.
401

•HR 2790 IH

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’’.
402

•HR 2790 IH

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.
403

•HR 2790 IH

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.
404

•HR 2790 IH

1 Subtitle E—Unremunerated Work

2 Act

3 SEC. 801. SHORT TITLE.

4 This subtitle may be cited as the ‘‘Unremunerated

5 Work Act of 1993’’.

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’’.
405

•HR 2790 IH

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.
406

•HR 2790 IH

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

HR 2790 IH——2

HR 2790 IH——3

HR 2790 IH——4

HR 2790 IH——5

HR 2790 IH——6

HR 2790 IH——7

HR 2790 IH——8

HR 2790 IH——9

HR 2790 IH——10

HR 2790 IH——11

HR 2790 IH——12

HR 2790 IH——13

HR 2790 IH——14

HR 2790 IH——15

HR 2790 IH——16

HR 2790 IH——17

HR 2790 IH——18
407

•HR 2790 IH

HR 2790 IH——19

HR 2790 IH——20

HR 2790 IH——21

HR 2790 IH——22

HR 2790 IH——23

HR 2790 IH——24

HR 2790 IH——25

HR 2790 IH——26