I
104TH CONGRESS
2D SESSION
H. R. 2857
To provide for relief to Federal employees, Federal contractors, and employees
of Federal contractors for expenses incurred as a result of nonpayment
of basic pay or impediments against contract performance arising from
lapses in appropriations.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 5, 1996
Mrs. MINK of Hawaii (for herself, Mr. ABERCROMBIE, Mr. MILLER of Califor-
nia, Ms. PELOSI, Ms. JACKSON-LEE of Texas, Mr. MORAN, Mr. HOYER,
and Mr. DELLUMS) introduced the following bill; which was referred to
the Committee on Government Reform and Oversight, and in addition to
the Committee on Ways and Means, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions
as fall within the jursidiction of the committee concerned
A BILL
To provide for relief to Federal employees, Federal contrac-
tors, and employees of Federal contractors for expenses
incurred as a result of nonpayment of basic pay or
impediments against contract performance arising from
lapses in appropriations.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. ENTITLEMENT TO REIMBURSEMENT FOR FI-
NANCIAL HARM INCURRED BY FEDERAL EM-
PLOYEES, FEDERAL CONTRACTORS, AND EM-
PLOYEES OF FEDERAL CONTRACTORS ARIS-
ING FROM FAILURE TO BE PAID DURING PE-
RIODS OF LAPSED APPROPRIATIONS.
(a) FINANCIAL HARM TO FEDERAL EMPLOYEES.—
Upon the termination of any period of lapsed appropria-
tions with respect to an agency or instrumentality of the
Federal Government or the District of Columbia, in addi-
tion to any basic pay payable to each individual who is
an officer or employee of such agency or instrumentality
during such period for any service performed during such
period, such officer or employee shall be entitled to reim-
bursement by such agency or instrumentality for financial
harm incurred by such individual resulting from—
(1) any failure to provide for the timely pay-
ment of basic pay to such individual for service per-
formed during such period, or
(2) the inability of such individual to earn basic
pay for service during such period under section
1342 of title 31, United States Code.
(b) FINANCIAL
HARM
TO
FEDERAL
CONTRAC-
TORS.—Upon the termination of any period of lapsed ap-
propriations with respect to an agency or instrumentality
of the Federal Government or the District of Columbia,
in addition to any payment under a Federal contract due
to a Federal contractor during such period and any inter-
est penalty on such payment in accordance with section
3902 of title 31, United States Code, such contractor shall
be entitled to reimbursement by such agency or instru-
mentality for financial harm incurred by such contractor
resulting from—
(1) any failure to provide for the timely pay-
ment of payments due under the contract to the con-
tractor during such period, or
(2) the inability of such contractor to perform
the contract during such period.
(c) FINANCIAL HARM TO EMPLOYEES OF FEDERAL
CONTRACTORS.—Upon the termination of any period of
lapsed appropriations with respect to an agency or instru-
mentality of the Federal Government or the District of
Columbia, each individual who is an employee of a Federal
contractor or of a subcontractor under a Federal contract
in effect during such period shall be entitled to reimburse-
ment by such agency or instrumentality for financial harm
incurred by such individual resulting from—
(1) any failure by the contractor or subcontrac-
tor to provide for the timely payment of the individ-
ual for service performed during such period under
the contract or subcontract, or
(2) the inability of such individual to earn pay
for service under the contract or subcontract during
such period.
SEC. 2. ADMINISTRATIVE REMEDY.
In any case in which an individual or contractor has
not been provided, within 60 days after the period of
lapsed appropriations involved, any reimbursement by an
agency or instrumentality of the Federal Government or
the District of Columbia to which the individual or con-
tractor is entitled under section 1, a claim may be made
by such individual or contractor against such agency or
instrumentality for recovery of such reimbursement. De-
terminations by the agency or instrumentality on such
claim shall be made on the record after opportunity for
an agency hearing. Any individual aggrieved by any final
determination by the agency or instrumentality under this
section may, during the 60-day period beginning on the
date the determination is issued, institute an action for
judicial review of the determination in any district court
of the United States in which an office of the agency or
instrumentality is located or in the United States District
Court for the District of Columbia.
SEC. 3. DEFINITIONS.
For purposes of this Act:
(1) PERIOD OF LAPSED APPROPRIATIONS.—The
term ‘‘period of lapsed appropriations’’ means, in
connection with an agency or instrumentality of the
Federal Government or the District of Columbia,
any period during which appropriations are not
available due to the absence of the timely enactment
of any Act or joint resolution appropriating funds
for such agency or instrumentality.
(2) FINANCIAL
HARM.—The term ‘‘financial
harm’’—
(A) in connection with any individual, in-
cludes—
(i) interest accrued on debts incurred
by the individual during the period of
lapsed appropriations necessary to meet
expenses which would have arisen irrespec-
tive of whether the period of lapsed appro-
priations had occurred,
(ii) penalties incurred by reason of in-
ability of the individual to make timely
payments of bills or other obligations
which would have become due irrespective
of whether the period of lapsed appropria-
tions had occurred,
(iii) other monetary loss incurred by
reason of forfeiture of property or other-
wise, and
(iv) in the case of an individual who
is an employee of a Federal contractor,
wages foregone by the employee for any
service performed by the employee during
the period of lapsed appropriations that
were not later paid by the contractor; and
(B) in connection with any Federal con-
tractor, includes—
(i) interest accrued on debts incurred
by the contractor in connection with a
Federal contract during the period of
lapsed appropriations necessary to meet
expenses which would have arisen irrespec-
tive of whether the period of lapsed appro-
priations had occurred,
(ii) penalties incurred by reason of in-
ability of the contractor to make timely
payments of bills or other obligations
which would have become due irrespective
of whether the period of lapsed appropria-
tions had occurred, and
(iii) other monetary loss incurred by
reason of forfeiture of property or other-
wise.
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