I
103D CONGRESS
1ST SESSION
H. R. 232
To amend the Federal Property and Administrative Services Act of 1949
and title 10, United States Code, to require as a term in each contract
for property or services made by an executive agency that the contractor
(and any subcontractors under that contract) shall comply with the
workmen’s compensation laws of each State in which the contract is
performed.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 5, 1993
Mr. LAROCCO introduced the following bill; which was referred jointly to the
Committees on Government Operations and Armed Services
A BILL
To amend the Federal Property and Administrative Services
Act of 1949 and title 10, United States Code, to require
as a term in each contract for property or services made
by an executive agency that the contractor (and any
subcontractors under that contract) shall comply with
the workmen’s compensation laws of each State in which
the contract is performed.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. FEDERAL CONTRACTS TO REQUIRE COMPLI-
ANCE WITH STATE WORKMEN’S COMPENSA-
TION LAWS.
(a) IN GENERAL.—(1) Title III of the Federal Prop-
erty and Administrative Services Act of 1949 (41 U.S.C.
251 et seq.) is amended by inserting after section 303G
(41 U.S.C. 253g) the following new section:
‘‘SEC. 303H. COMPLIANCE WITH STATE WORKMEN’S COM-
PENSATION LAWS.
‘‘(a) COMPLIANCE REQUIRED.—Each contract for
the purchase of property or services made by an executive
agency shall provide that the prime contractor (and any
subcontractor performing work on the contract under the
prime contractor) shall guarantee throughout the perform-
ance of work under the contract to comply with the work-
men’s compensation law of each State in which work
under the contract will be performed.
‘‘(b) TERMINATION OF WORK ON FAILURE TO DEM-
ONSTRATE COMPLIANCE.—Each such contract shall con-
tain the further provision that in the event the contracting
officer determines that the prime contractor (or any sub-
contractor under the contract) is not in compliance with
the workmen’s compensation laws of any State within
which work under the contract is being carried out, the
Government may terminate the right of the offending con-
tractor or subcontractor to proceed with the work or such
part of the work being carried out in a State in which
compliance with the workmen’s compensation laws is not
demonstrated. Notice of such termination shall be pro-
vided in writing to the offending contractor or subcontrac-
tor. If, within a reasonable time, the offending contractor
or subcontractor has not demonstrated compliance with
the workmen’s compensation laws of such State, including
payment of any fines or penalties assessed for failure to
carry workmen’s compensation insurance, the Government
may complete the work. The contractor and any sureties
of the contractor shall be liable to the Government for any
excess costs occasioned the Government as a result of the
termination.
‘‘(c) EXCEPTIONS.—This section shall not apply in
the case of contracts covered by the Defense Base Act (42
U.S.C. 1651 et seq.) or the Longshore and Harbor Work-
ers’ Compensation Act (33 U.S.C. 901 et seq.).
‘‘(d) SUSPENSION OF SECTION.—In the event of a
national emergency, the President may suspend operation
of this section.’’.
(2) The table of contents at the beginning of such
Act is amended by inserting after the item relating to sec-
tion 303G the following new item:
‘‘Sec. 303H. Compliance with State workmen’s compensation laws.’’.
(b) SPECIAL RULE FOR DEFENSE CONTRACTS.—(1)
Chapter 137 of title 10, United States Code, is amended
by adding at the end the following new section:
‘‘§ 2332. Compliance with State workmen’s compensa-
tion laws.
‘‘(a) COMPLIANCE REQUIRED.—Each contract for
the purchase of property or services made by the head of
an agency shall provide that the prime contractor (and any
subcontractor performing work on the contract under the
prime contractor) shall guarantee throughout the perform-
ance of work under the contract to comply with the work-
men’s compensation law of each State in which work
under the contract will be performed.
‘‘(b) TERMINATION OF WORK ON FAILURE TO DEM-
ONSTRATE COMPLIANCE.—Each such contract shall con-
tain the further provision that in the event the contracting
officer determines that the prime contractor (or any sub-
contractor under the contract) is not in compliance with
the workmen’s compensation laws of any State within
which work under the contract is being carried out, the
head of the agency concerned may terminate the right of
the offending contractor or subcontractor to proceed with
the work or such part of the work being carried out in
a State in which compliance with the workmen’s com-
pensation laws is not demonstrated. Notice of such termi-
nation shall be provided in writing to the offending con-
tractor or subcontractor. If, within a reasonable time, the
offending contractor or subcontractor has not dem-
onstrated compliance with the workmen’s compensation
laws of such State, including payment of any fines or pen-
alties assessed for failure to carry workmen’s compensa-
tion insurance, the head of the agency concerned may
complete the work. The contractor and any sureties of the
contractor shall be liable to the Government for any excess
costs occasioned the Government as a result of the termi-
nation.
‘‘(c) EXCEPTIONS.—This section shall not apply in
the case of contracts covered by the Defense Base Act (42
U.S.C. 1651 et seq.).
‘‘(d) SUSPENSION OF SECTION.—In the event of a
national emergency, the President may suspend operation
of this section.’’.
(2) The table of contents at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘2332. Compliance with State workmen’s compensation laws.’’.
(c) APPLICATION OF AMENDMENTS.—The amend-
ments made by this section shall apply with respect to
Federal contracts entered into after the date of the enact-
ment of this Act.
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