I
104TH CONGRESS
1ST SESSION
H. R. 1806
To authorize appropriations for the Legal Services Corporation Act and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 8, 1995
Mr. MCCOLLUM (for himself and Mr. STENHOLM) introduced the following
bill; which was referred to the Committee on the Judiciary
A BILL
To authorize appropriations for the Legal Services
Corporation Act and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS; REF-
ERENCE.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Legal Services Reform Act of 1995’’.
(b) TABLE OF CONTENTS.—The table of contents is
as follows:
Sec. 1. Short title; table of contents; reference.
Sec. 2. Findings.
Sec. 3. Authorization of appropriations.
Sec. 4. Prohibition on redistricting activity.
Sec. 5. Protection against theft and fraud.
Sec. 6. Solicitation.
Sec. 7. Procedural safeguards for litigation.
Sec. 8. Lobbying and rulemaking.
Sec. 9. Timekeeping.
Sec. 10. Authority of local governing boards.
Sec. 11. Regulation of nonpublic resources.
Sec. 12. Certain eviction proceedings.
Sec. 13. Implementation of competition.
Sec. 14. Research and attorneys’ fees.
Sec. 15. Abortion.
Sec. 16. Class actions.
Sec. 17. Aliens.
Sec. 18. Training.
Sec. 19. Copayments.
Sec. 20. Fee-generating cases.
Sec. 21. Welfare reform.
Sec. 22. Prisoner litigation.
Sec. 23. Appointment of Corporation president.
Sec. 24. Evasion.
Sec. 25. Pay for officers and employees of the Corporation.
Sec. 26. Location of principal office.
Sec. 27. Definition.
(c) REFERENCE.—Whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment
to or repeal of a section or other provision, the reference
shall be considered to be made to section or other provi-
sion of the Legal Services Corporation Act (42 U.S.C.
2996 and following).
SEC. 2. FINDINGS.
Section 1001 (42 U.S.C. 2996) is amended to read
as follows:
‘‘FINDINGS
‘‘SEC. 1001. The Congress finds the following:
‘‘(1) There is a need to encourage equal access
to the system of justice in the United States for in-
dividuals seeking redress of grievances.
‘‘(2) There is a need to encourage the provision
of high quality legal assistance for those who would
otherwise be unable to afford legal counsel.
‘‘(3) Encouraging the provision of legal assist-
ance to those who face an economic barrier to legal
counsel will serve the ends of justice consistent with
the purposes of the Legal Services Corporation Act.
‘‘(4) It is not the purpose of the Legal Services
Corporation Act to meet all the legal needs of all po-
tentially eligible clients, but instead to be a catalyst
to encourage the legal profession and others to meet
their responsibilities to the poor and to maximize ac-
cess of the poor to justice.
‘‘(5) For many citizens the availability of legal
services has reaffirmed faith in our government of
laws.
‘‘(6) To preserve its strength, the legal services
program must be made completely free from the in-
fluence of political pressures and completely free of
lobbying and political activity.
‘‘(7) There are over 2,000 non-profit organiza-
tions advocating on behalf of the poor throughout
the United States and it is not appropriate for funds
regulated under the Legal Services Corporation Act
to be expended lobbying for or against positions
taken by those groups.
‘‘(8) Attorneys providing legal assistance must
protect the best interests of their clients in keeping
with the Code of Professional Responsibility, the
Canon of Ethics, and the high standards of the legal
profession.
SEC. 3. AUTHORIZATION OF APPROPRIATIONS.
Subsection (a) of section 1010 (42 U.S.C. 2996i) is
amended to read as follows:
‘‘(a) There are authorized to be appropriated for the
purposes of carrying out the activities of the Corpora-
tion—
‘‘(1) $250,000,000 for fiscal year 1996,
‘‘(2) $250,000,000 for fiscal year 1997,
‘‘(3) $250,000,000 for fiscal year 1998,
‘‘(4) $250,000,000 for fiscal year 1999, and
‘‘(5) $250,000,000 for fiscal year 2000.’’.
SEC. 4. PROHIBITION ON REDISTRICTING ACTIVITY.
Section 1007(b) (42 U.S.C. 2996f(b)) is amended—
(1) in paragraph (9), by striking ‘‘or’’ after the
semicolon;
(2) in paragraph (10), by striking the period
and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(11) to—
‘‘(A) advocate or oppose, or contribute or
make available any funds, personnel, or equip-
ment for use in advocating or opposing, any
plan or proposal, or
‘‘(B) represent any party or participate in
any other way in litigation,
that is intended to or has the effect of altering, re-
vising, or reapportioning a legislative, judicial, or
elective district at any level of government, including
influencing the timing or manner of the taking of a
census.’’.
SEC. 5. PROTECTION AGAINST THEFT AND FRAUD.
Section 1005 (42 U.S.C. 2996d) is amended by add-
ing at the end the following:
‘‘(h) For purposes of sections 286, 287, 641, 1001,
and 1002 of title 18, United States Code, the Corporation
shall be considered to be a department or agency of the
United States Government.
‘‘(i) For purposes of sections 3729 through 3733 of
title 31, United States Code, the term ‘‘United States
Government’’ shall include the Corporation, except that
actions that are authorized by section 3730(b) of such title
to be brought by persons may not be brought against the
Corporation, any recipient, subrecipient, grantee, or con-
tractor of the Corporation, or any employee thereof.
‘‘(j) For purposes of section 1516 of title 18, United
States Code—
‘‘(1) the term ‘Federal auditor’ shall include
any auditor employed or retained on a contractual
basis by the Corporation,
‘‘(2) the term ‘contract’ shall include any grant
or contract made by the Corporation, and
‘‘(3) the term ‘person’, as used in subsection
(a) of such section, shall include any grantee or con-
tractor receiving financial assistance under section
1006(a)(1).
‘‘(k) Funds provided by the Corporation under sec-
tion 1006 shall be deemed to be Federal appropriations
when used by a contractor, grantee, subcontractor, or
subgrantee of the Corporation.
‘‘(l) For purposes of section 666 of title 18, United
States Code, funds provided by the Corporation shall be
deemed to be benefits under a Federal program involving
a grant or contract.’’.
SEC. 6. SOLICITATION.
Section 1007 (42 U.S.C. 2996f) is amended by add-
ing at the end the following:
undertake to give individual advice in such speech or
publication; and
‘‘(4) if success in asserting rights or defenses of
a client in litigation in the nature of class action is
dependent upon the joinder of others, an attorney
may accept, but shall not seek, employment from
those contacted for the purpose of obtaining that
joinder.’’.
SEC. 7. PROCEDURAL SAFEGUARDS FOR LITIGATION.
Section 1007 (42 U.S.C. 2996f), as amended by sec-
tion 6 of this Act, is further amended by adding at the
end the following:
‘‘(j)(1) No recipient or employee of a recipient may
file a complaint or otherwise pursue litigation against a
defendant unless—
‘‘(A) all plaintiffs have been specifically identi-
fied, by name, in any complaint filed for purposes of
litigation, except to the extent that a court of com-
petent jurisdiction has granted leave to protect the
identity of any plaintiff; and
‘‘(B) a statement or statements of facts written
in English and, if necessary, in a language which the
plaintiffs understand, which enumerate the particu-
lar facts known to the plaintiffs on which the com-
plaint is based, have been signed by the plaintiffs
(including named plaintiffs in a class action), are
kept on file by the recipient, and are made available
to any Federal department or agency that is audit-
ing the activities of the Corporation or any recipient,
and to any auditor receiving Federal funds to con-
duct such auditing, including any auditor or monitor
of the Corporation.
Other parties shall have access to the statement of facts
referred to in subparagraph (B) only through the discov-
ery process after litigation has begun.
‘‘(2) No recipient or employee of a recipient may en-
gage in precomplaint settlement negotiations with a pro-
spective defendant unless—
‘‘(A) all plaintiffs have been specifically identi-
fied, except to the extent that a court of competent
jurisdiction has granted leave to protect the identity
of any plaintiff; and
‘‘(B) a statement or statements of facts written
in English and, if necessary, in a language which the
plaintiffs understand, which enumerate the particu-
lar facts known to the plaintiffs on which the com-
plaint will be based if such negotiations fail, have
been signed by all plaintiffs (including named plain-
tiffs in a class action), are kept on file by the recipi-
ent, and are made available to all prospective de-
fendants or such defendants’ counsel, to any Federal
department or agency that is auditing the activities
of the Corporation or any such recipient, and to any
auditor receiving Federal funds to conduct such au-
diting, including any auditor or monitor of the Cor-
poration.
‘‘(3)(A) Subject to subparagraph (B), any Federal
district court of competent jurisdiction, after notice to po-
tential parties to litigation referred to in paragraph (1)
or to negotiations described in paragraph (2) and after
an opportunity for a hearing, may enjoin the disclosure
of the identity of any potential plaintiff pending the out-
come of such litigation or negotiations, upon the establish-
ment of reasonable cause to believe that such an injunc-
tion is necessary to prevent probable, serious harm to such
potential plaintiff.
‘‘(B) Notwithstanding subparagraph (A), the court
shall, in a case in which subparagraph (A) applies, order
the disclosure of the identity of any potential plaintiff to
counsel for potential defendants upon the condition that
counsel for potential defendants not disclose the identity
of such potential plaintiff (other than to investigators or
paralegals hired by such counsel), unless authorized in
writing by such potential plaintiff’s counsel or the court.
‘‘(C) In a case in which paragraph (1) applies, coun-
sel for potential defendants and the recipient or employee
counsel of the recipient may execute an agreement, in lieu
of seeking a court order under subparagraph (A), govern-
ing disclosure of the identity of any potential plaintiff.
‘‘(D) The court may punish as a contempt of court
any violation of an order of the court under subparagraph
(A) or (B) or of an agreement under subparagraph (C).
‘‘(4) Any funds received from a defendant by a recipi-
ent on behalf of a class of eligible clients shall be placed
in an escrow account until the funds may be paid to such
clients. Any such funds which are not disbursed to clients
within one year of the date on which such funds were re-
ceived shall be returned to the defendant.’’.
SEC. 8. LOBBYING.
Section 1007(a)(5) (42 U.S.C. 2996f(a)(5)) is
amended to read as follows:
‘‘(5) ensure that no funds made available to re-
cipients are used at any time, directly or indirectly—
‘‘(A) to influence the issuance, amendment,
or revocation of any executive order or similar
promulgation by any Federal, State, or local
agency, or to undertake to influence the pas-
sage or defeat of any legislation by the Con-
gress of the United States, or by any State or
local legislative body, or State proposals made
by initiative petition or referendum, except to
the extent that a governmental agency, a legis-
lative body, a committee, or a member thereof
is considering a measure directly affecting the
recipient or the Corporation;
‘‘(B) to pay for any publicity or propa-
ganda intended or designed to support or defeat
legislation pending before the Congress or State
or local legislative bodies or intended or de-
signed to influence any decision by a Federal,
State, or local agency;
‘‘(C) to pay for any personal service, ad-
vertisement, telegram, telephone communica-
tion, letter, printed or written matter, or other
device, intended or designed to influence any
decision by a Federal, State, or local agency,
except when legal assistance is provided by an
employee of a recipient to an eligible client on
a particular application, claim, or case, which
directly involves the client’s legal rights or re-
sponsibilities and which does not involve the is-
suance, amendment, or revocation of any agen-
cy promulgation described in subparagraph (A);
‘‘(D) to pay for any personal service, ad-
vertisement, telegram, telephone communica-
tion, letter, printed or written matter, or any
other device intended or designed to influence
any Member of Congress or any other Federal,
State, or local elected official—
‘‘(i) to favor or oppose any referen-
dum, initiative, constitutional amendment,
or any similar procedures of the Congress,
any State legislature, any local council, or
any similar governing body acting in a leg-
islative capacity,
‘‘(ii) to favor or oppose an authoriza-
tion or appropriation directly affecting the
authority, function, or funding of the re-
cipient or the Corporation, or
‘‘(iii) to influence the conduct of over-
sight proceedings of a recipient or the Cor-
poration; or
‘‘(E) to pay for any personal service, ad-
vertisement, telegram, telephone communica-
tion, letter, printed or written matter, or any
other device intended or designed to influence
any Member of Congress or any other Federal,
State, or local elected official to favor or oppose
any Act, bill, resolution, or similar legislation;
and ensure that no funds made available to recipi-
ents are used to pay for any administrative or relat-
ed costs associated with an activity prohibited in
subparagraph (A), (B), (C), (D), or (E);’’.
SEC. 9. TIMEKEEPING.
Section 1008(b) (42 U.S.C. 2996g(b)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and
(2) by adding at the end the following:
‘‘(2) The Corporation shall require each recipient to
maintain records of time spent on the cases or matters
with respect to which that recipient is engaged in activi-
ties. Pursuant to such requirements, each employee of
such recipient who is an attorney or paralegal shall record,
by the name of the case or matter, at the time such em-
ployee engages in an activity regarding such case or mat-
ter, the type (as defined by the Corporation) of case or
matter, the time spent on the activity, and the source of
funds to be charged for the activity.’’.
SEC. 10. AUTHORITY OF LOCAL GOVERNING BOARDS.
Section 1007(c) (42 U.S.C. 2996f(c)) is amended—
(1) by striking ‘‘(1)’’ and ‘‘(2)’’ and inserting
‘‘(A)’’ and ‘‘(B)’’, respectively;
(2) by inserting ‘‘(1)’’ after ‘‘(c)’’; and
(3) by adding at the end the following:
‘‘(2) The board of directors of any nonprofit organi-
zation that is—
‘‘(A) chartered under the laws of one of the
States, a purpose of which is furnishing legal assist-
ance to eligible clients, and
‘‘(B) receiving funds made available by or
through the Corporation,
shall 
set 
specific 
priorities 
pursuant 
to 
section
1007(a)(2)(C) for the types of matters and cases to which
the staff of the nonprofit organization shall devote its time
and resources. The staff of such organization shall not un-
dertake cases or matters other than in accordance with
the specific priorities set by its board of directors, except
in emergency situations defined by such board. The staff
of such organization shall report, to the board of directors
of the organization on a quarterly basis and to the Cor-
poration on an annual basis, all cases undertaken other
than in accordance with such priorities. The Corporation
shall promulgate a suggested list of priorities which boards
of directors may use in setting priorities under this para-
graph.’’.
SEC. 11. REGULATION OF NONPUBLIC RESOURCES.
Section 1010(c) (42 U.S.C. 2996i(c)) is amended to
read as follows:
‘‘(c)(1) Any non-Federal funds received by the Cor-
poration, and any funds received by any recipient from
any source other than the Corporation, shall be accounted
for and reported as receipts and disbursements separate
and distinct from Corporation funds. Any funds so re-
ceived, including funds derived from Interest on Lawyers
Trust Accounts, may not be expended by recipients for
any purpose prohibited by this title or the Legal Services
Reform Act of 1995. The Corporation shall not accept any
non-Federal funds, and any recipient shall not accept
funds from any source other than the Corporation, unless
the Corporation or the recipient, as the case may be, noti-
fies in writing the source of such funds that the funds
may not be expended for any purpose prohibited by this
title or the Legal Services Reform Act of 1995.
‘‘(2) Paragraph (1) shall not prevent recipients
from—
‘‘(A) receiving Indian tribal funds (including
funds from private nonprofit organizations for the
benefit of Indians or Indian tribes) and expending
them in accordance with the specific purposes for
which they are provided; or
‘‘(B) using funds received from a source other
than the Corporation to provide legal assistance to
a client who is not an eligible client if such funds
are used for the specific purposes for which such
funds were received, except that such funds may not
be expended by recipients for any purpose prohibited
by this title or the Legal Services Reform Act of
1995 (other than any requirement regarding the eli-
gibility of clients).’’.
SEC. 12. CERTAIN EVICTION PROCEEDINGS.
Section 1007 (42 U.S.C. 2996f), as amended by sec-
tions 6 and 7 of this Act, is further amended by adding
at the end the following:
‘‘(k)(1) No funds made available by or through the
Corporation may be used for defending a person in a pro-
ceeding to evict that person from a public housing project
if the person has been charged with the illegal sale or dis-
tribution of a controlled substance and if the eviction pro-
ceeding is brought by a public housing agency because the
illegal drug activity of that person threatens the health
or safety of other tenants residing in the public housing
project or employees of the public housing agency.
‘‘(2) As used in this subsection—
‘‘(A) the term ‘controlled substance’ has the
meaning given that term in section 102 of the Con-
trolled Substances Act (21 U.S.C. 802); and
‘‘(B) the terms ‘public housing project’ and
‘public housing agency’ have the meanings given
those terms in section 3 of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437a).’’.
SEC. 13. IMPLEMENTATION OF COMPETITION.
(a) IN GENERAL.—Section 1007 (42 U.S.C. 2996f),
as amended by sections 6, 7, and 12 of this Act, is further
amended by adding at the end the following:
‘‘(l)(1) All grants and contracts awarded by the Cor-
poration for the provision or support of legal assistance
to eligible clients under this title shall be awarded under
a competitive bidding system.
‘‘(2) Rights under sections 1007(a)(9) and 1011 shall
not apply to the termination or denial of financial assist-
ance under this title as a result of the competitive award
of any grant or contract under paragraph (1), and the
expiration of any grant or contract under this title as a
result of such competitive award shall not be treated as
a termination or denial of refunding under section
1007(a)(9) or 1011.
‘‘(3) For purposes of this subsection, the term ‘com-
petitive bidding’ means a system established by regula-
tions issued by the Corporation which provide for the
award of grants and contracts on the basis of merit to
persons, organizations, and entities described in section
1006(a) who apply for such awards in competition with
others under promulgated criteria. The Corporation shall
ensure that the system incorporates the following:
‘‘(A) The competitive bidding system shall com-
mence no later than one year after the date of enact-
ment of this provision and all previously awarded
grants and contracts shall be set aside and subjected
to this system within one year thereafter.
‘‘(B) All awards of grants and contracts made
under this system shall be subject to periodic review
and renewed with the opportunity for others to com-
pete for the award, and in no event shall any award
be granted for a period longer than 5 years.
‘‘(C) Timely notice for the submission of appli-
cations for awards shall be published in periodicals
of local and State bar associations and in at least
one daily newspaper of general circulation in the
area to be served by the award recipient.
‘‘(D) The selection criteria shall include but not
be limited to the demonstration of a full understand-
ing of the basic legal needs of the eligible clients to
be served and a demonstration of the capability of
serving those needs; the reputations of the principals
of the applicant; the quality, feasibility, and cost ef-
fectiveness of plans submitted by the applicant for
the delivery of legal assistance to the eligible clients
to be served; a demonstration of willingness to abide
by the restrictions placed on those awarded grants
and contracts by the Corporation; and, if an appli-
cant has previously received an award from the Cor-
poration, the experiences of the Corporation with the
applicant.
‘‘(E) No previous recipient of an award of a
grant or contract may be given any preference.
‘‘(m)(1) The Corporation shall define service areas
and funds available for each service area shall be on a
per capita basis pursuant to the number of poor people
determined by the Bureau of the Census to be within that
area. Funds for a service area may be distributed by the
Corporation to one or more recipients as defined in section
1006(a).
‘‘(2) The amount of the grants from the Corporation
and of the contracts entered into by the Corporation under
section 1006(a)(1) shall be an equal figure per poor per-
son for all geographic areas, based on the most recent de-
cennial census of population conducted pursuant to section
141 of title 13, United States Code, regardless of the level
of funding for any such geographic area before the enact-
ment of the Legal Services Reform Act of 1995.
‘‘(3) Beginning with the fiscal year beginning after
the results of the most recent decennial census have been
reported to the President under section 141(b) of title 13,
United States Code, funding of geographic areas served
by recipients shall be redetermined, in accordance with
paragraph (2), based on the per capita poverty population
in each such geographic area under that decennial cen-
sus.’’.
(b) 
REQUIREMENTS
OF
RECIPIENTS.—Section
1007(c) (42 U.S.C. 2996f(c)), as amended by section 10
of this Act, is further amended by adding at the end the
following:
‘‘(3) Funds appropriated for the Corporation may not
be used by the Corporation in making grants or entering
into contracts for legal assistance unless the Corporation
ensures that the recipient is either—
‘‘(A) a private attorney or attorneys,
‘‘(B) State and local governments or substate
regional planning and coordination agencies which
are composed of substate areas whose governing
board is controlled by locally elected officials, or
‘‘(C) a qualified nonprofit organization char-
tered under the laws of one of the States—
‘‘(i) a purpose of which is furnishing legal
assistance to eligible clients, and
‘‘(ii) the majority of the board of directors
or other governing body of which is comprised
of attorneys who are admitted to practice in one
of the States and are approved to serve on such
board or body by the governing bodies of State,
county, or municipal bar associations the mem-
bership of which represents a majority of the
attorneys practicing law in the locality in which
the organization is to provide legal assistance.
The approval described in subparagraph (B)(ii) may be
given to more than one group of directors.’’.
SEC. 14. POWERS, RESEARCH, AND ATTORNEYS’ FEES.
(a) POWERS.—Section 1006(a)(1)(A)(ii) is amended
to read as follows:
‘‘(ii) State and local governments or sub-
state regional planning and coordination agen-
cies which are composed of substate areas
whose governing board is controlled by locally
elected officials,’’.
(b) 
RESEARCH.—Section 
1006(a) 
(42 
U.S.C.
2996e(a)) is amended by inserting ‘‘and’’ at the end of
paragraph (1), by striking ‘‘; and’’ at the end of paragraph
(2) and inserting a period, and by striking paragraph (3).
(c) ATTORNEYS’ FEES.—Section 1006 (42 U.S.C.
2996e(f)) is amended by striking subsection (f) and insert-
ing the following:
‘‘(f)(1) A recipient, or any client of such recipient,
may not claim or collect attorneys’ fees from nongovern-
mental parties to litigation initiated by such client with
the assistance of such recipient.
‘‘(2) The Corporation shall create a fund to pay de-
fendants or clients under paragraphs (3). In addition to
any other amounts appropriated to the Corporation, there
is authorized to be appropriated to such fund for each fis-
cal year such sums as may be necessary.
‘‘(3) If a Federal court has found an action com-
menced by a plaintiff with the assistance of a recipient
involves a violation of Rule 11 of the Federal Rules of
Civil Procedure, or if the president of the Corporation
finds that an action commenced by a plaintiff with the
assistance of a recipient in any court involves a violation
of the standards of Rule 11, or was commenced for the
purpose of retaliation or harassment, the president of the
Corporation shall, upon application by the defendant,
award from the Fund all reasonable costs and attorneys’
fees incurred by the defendant in defending the action.
‘‘(g)(1) The Board, within 90 days after the date of
the enactment of the Legal Services Reform Act of 1995,
shall issue regulations to provide for the distribution of
attorneys’ fees received by a recipient, in accordance with
paragraph (2).
‘‘(2) Such fees shall be transferred to the Corporation
and the Corporation shall distribute such fees among its
grantees for the direct delivery of legal assistance, except
that, subject to approval by the Corporation—
‘‘(A) a recipient shall not be required to trans-
fer fees or other compensation received as a result
of a mandated court appointment;
‘‘(B) a recipient may retain reasonable costs
customarily allowed in litigation against an unsuc-
cessful party; and
‘‘(C) a recipient may retain the actual cost of
bringing the action, including the proportion of the
compensation of each attorney involved in the action
which is attributable to that action.’’.
SEC. 15. ABORTION.
(a) PROHIBITION.—Section 1007 (42 U.S.C. 2996f),
as amended by sections 6, 7, 12, and 13 of this Act, is
further amended by adding at the end the following:
‘‘(n) No funds made available to any recipient from
any source may be used to participate in any litigation
with respect to abortion.’’.
(b) CONFORMING AMENDMENT.—Section 1007(b)
(42 U.S.C. 2996f(b)), as amended by section 4, is amend-
ed by striking paragraph (8) and redesignating para-
graphs (9), (10), and (11) as paragraphs (8), (9), and
(10), respectively.
SEC. 16. CLASS ACTIONS.
Section 1006(d)(5) (42 U.S.C. 2996e(d)(5)) is
amended—
(1) by striking ‘‘No’’ and inserting ‘‘(A) Subject
to subparagraph (B), no’’; and
(2) by adding at the end the following:
‘‘(B) No recipient or employee of a recipient may
bring a class action suit against the Federal Government
or any State or local government unless—
‘‘(i) the governing body of the recipient has ex-
pressly approved the filing of such an action;
‘‘(ii) the class relief which is the subject of such
an action is sought for the primary benefit of indi-
viduals who are eligible for legal assistance under
this title; and
‘‘(iii) before filing such an action, the project
director of the recipient determines that the govern-
ment entity is not likely to change the policy or
practice in question, that the policy or practice will
continue to adversely affect eligible clients, that the
recipient has given notice of its intention to seek
class relief, and that responsible efforts to resolve
without litigation the adverse effects of the policy or
practice have not been successful or would be ad-
verse to the interest of the clients.’’.
SEC. 17. RESTRICTIONS ON USE OF FUNDS FOR LEGAL AS-
SISTANCE TO ALIENS.
Section 1007 (42 U.S.C. 2996f), as amended by sec-
tions 6, 7, 12, 13, and 15 of this Act, is further amended
by adding at the end the following:
‘‘(o) No funds made available to any recipient from
any source may be expended to provide legal assistance
for or on behalf of any alien unless the alien is present
in the United States and is—
‘‘(1) an alien lawfully admitted for permanent
residence as defined in section 101(a)(2) of the Im-
migration 
and 
Nationality 
Act 
(8 
U.S.C.
1101(a)(20));
‘‘(2) an alien who is either married to a United
States citizen or is a parent or an unmarried child
under the age of 21 years of such a citizen and who
has filed an application for adjustment of status to
permanent resident under the Immigration and Na-
tionality Act, and such application has not been re-
jected;
‘‘(3) an alien who is lawfully present in the
United States pursuant to an admission under sec-
tion 207 of the Immigration and Nationality Act (8
U.S.C. 1157, relating to refugee admissions) or who
has been granted asylum by the Attorney General
under such Act;
‘‘(4) an alien who is lawfully present in the
United States as a result of the Attorney General’s
withholding of deportation pursuant to section
243(h) of the Immigration and Nationality Act (8
U.S.C. 1253(h)); or
‘‘(5) an alien to whom section 305 of the Immi-
gration Reform and Control Act of 1986 applies, but
only to the extent that the legal assistance provided
is that described in that section.
An alien who is lawfully present in the United States as
a result of being granted conditional entry pursuant to
section 203(a)(7) of the Immigration and Nationality Act
(8 U.S.C 11553(a)(7)) before April 1, 1980, because of
persecution or fear of persecution on account of race, reli-
gion, or political opinion or because of being uprooted by
catastrophic natural calamity shall be deemed to be an
alien described in paragraph (3).’’.
SEC. 18. TRAINING.
Section 1007(b)(6) (42 U.S.C. 2996f(b)(6)) is
amended to read as follows:
‘‘(6) to support or conduct training programs
for the purpose of advocating particular public poli-
cies or encouraging political activities, labor or
antilabor activities, boycotts, picketing, strikes, or
demonstrations, including the dissemination of infor-
mation about such policies or activities, except that
this paragraph shall not be construed to prohibit the
training of attorneys or paralegal personnel nec-
essary to prepare them to provide adequate legal as-
sistance to eligible clients, to advise any eligible cli-
ent as to the nature of the legislative process, or to
inform any eligible client of the client’s rights under
any statute, order, or regulation;’’.
SEC. 19. COPAYMENTS.
Section 1007 (42 U.S.C. 2996f), as amended by sec-
tions 6, 7, 12, 13, 15, and 17 of this Act, is further
amended by adding at the end the following:
‘‘(p) The Corporation shall undertake one or more
demonstration projects in order to study the feasibility of
using client copayments to assist in setting the service pri-
orities of its programs. Based on these projects and such
other information as it considers appropriate, the Cor-
poration may adopt a permanent system of client
copayments for some or all of its programs of legal assist-
ance.’’.
SEC. 20. FEE-GENERATING CASES.
(a) REPRESENTATION IN FEE-GENERATING CASE.—
Paragraph (1) of section 1007(b) (42 U.S.C 2996f(b)) is
amended to read as follows:
‘‘(1) to provide legal assistance with respect to
any fee-generating case, except that this paragraph
does not preclude representation of otherwise eligible
clients in cases in which the client seeks benefits
under titles II or XVI of the Social Security Act;’’.
(b) DEFINITION.—Section 1007(b) is amended by
adding at the end the following:
‘‘For purposes of paragraph (1), the term ‘fee-generating
case’ means any case which if undertaken on behalf of an
eligible client by an attorney in private practice may rea-
sonably be expected to result in a fee for legal services
from an award to a client from public funds, from the
opposing party, or from any other source.’’.
SEC. 21. WELFARE REFORM.
Section 1007(b) (42 U.S.C. 2996f(b)), as amended
by section 15(b), is amended—
(1) by striking ‘‘or’’ at the end of paragraph
(9),
(2) by striking the period at the end of para-
graph (10) and inserting a semicolon, and
(3) by adding after paragraph (10) the follow-
ing:
‘‘(11) to provide legal representation for any
person or participate in any other way in litigation,
lobbying, or rulemaking involving efforts to reform a
State or Federal welfare system, except that this
paragraph does not preclude a recipient from rep-
resenting an individual client who seeking specific
relief from a welfare agency where such relief does
not involve an effort to amend or otherwise challenge
existing law; or’’.
SEC. 22. PRISONER LITIGATION.
Section 1007(b) (42 U.S.C. 2996f(b)). as amended
by section 21, is amended by adding after paragraph (11)
the following:
‘‘(12) to provide legal representation in litiga-
tion on behalf of a local, State, or Federal pris-
oner.’’.
SEC. 23. APPOINTMENT OF CORPORATION PRESIDENT.
Section 1005 (42 U.S.C. 2996d) is amended in sub-
section (a)—
(1) by striking ‘‘The Board shall’’ and inserting
‘‘The President, by and with the advice and consent
of the Senate, shall’’;
(2) by adding ‘‘who shall serve at the pleasure
of the President’’ after ‘‘the president of the Cor-
poration,’’;
(3) by striking ‘‘as the Board’’ and inserting
‘‘as the President’’; and
(4) by striking ‘‘by the Board’’ and inserting
‘‘by the President’’.
SEC. 24. EVASION.
The Legal Services Corporation Act is amended—
(1) by redesignating sections 1013 and 1014 as
sections 1014 and 1015, respectively; and
(2) by inserting after section 1012 the following
new section:
‘‘EVASION
‘‘SEC. 1013. Any attempt, such as the creation or use
of ‘alternative corporations’, to avoid or otherwise evade
the provisions of this title or the Legal Services Reform
Act of 1995 is prohibited.’’.
SEC. 25. PAY FOR OFFICERS AND EMPLOYEES OF THE COR-
PORATION.
Section 1005(d) (42 U.S.C. 2996d(d)) is amended—
(1) by striking ‘‘V’’ and inserting ‘‘III’’; and
(2) by striking ‘‘5316’’ and inserting ‘‘5314’’.
SEC. 26. LOCATION OF PRINCIPAL OFFICE.
Section 1003(b) (42 U.S.C. 2996b(b)) is amended by
striking ‘‘District of Columbia’’ and inserting ‘‘Washing-
ton D.C. metropolitan area’’.