104TH CONGRESS
2D SESSION
H. R. 4194
AN ACT
To reauthorize alternative means of dispute resolu-
tion in the Federal administrative process, and
for other purposes.
104TH CONGRESS
2D SESSION
H. R. 4194
AN ACT
To reauthorize alternative means of dispute resolution in
the Federal administrative process, 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.
This Act may be cited as the ‘‘Administrative Dispute
Resolution Act of 1996’’.
SEC. 2. AMENDMENT TO DEFINITIONS.
Section 571 of title 5, United States Code, is amend-
ed—
(1) in paragraph (3)—
(A) by striking ‘‘, in lieu of an adjudication
as defined in section 551(7) of this title,’’;
(B) by striking ‘‘settlement negotiations,’’;
and
(C) by striking ‘‘and arbitration’’ and in-
serting ‘‘arbitration, and use of ombuds’’; and
(2) in paragraph (8)—
(A) in subparagraph (B) by striking ‘‘deci-
sion,’’ and inserting ‘‘decision;’’; and
(B) by striking the matter following sub-
paragraph (B).
SEC. 3. AMENDMENTS TO CONFIDENTIALITY PROVISIONS.
(a) LIMITATION OF CONFIDENTIALITY APPLICATION
TO COMMUNICATION.—Subsections (a) and (b) of section
574 of title 5, United States Code, are each amended in
the matter before paragraph (1) by striking ‘‘any informa-
tion concerning’’.
(b) DISPUTE RESOLUTION COMMUNICATION.—Sec-
tion 574(b)(7) of title 5, United States Code, is amended
to read as follows:
‘‘(7) except for dispute resolution communica-
tions generated by the neutral, the dispute resolution
communication was provided to or was available to
all parties to the dispute resolution proceeding.’’.
(c) 
ALTERNATIVE
CONFIDENTIALITY
PROCE-
DURES.—Section 574(d) of title 5, United States Code,
is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(d)’’; and
(2) by adding at the end thereof the following
new paragraph:
‘‘(2) To qualify for the exemption established under
subsection (j), an alternative confidential procedure under
this subsection may not provide for less disclosure than
the confidential procedures otherwise provided under this
section.’’.
(d) EXEMPTION FROM DISCLOSURE BY STATUTE.—
Section 574 of title 5, United States Code, is amended
by amending subsection (j) to read as follows:
‘‘(j) A dispute resolution communication which is be-
tween a neutral and a party and which may not be dis-
closed under this section shall also be exempt from disclo-
sure under section 552(b)(3).’’.
SEC. 4. AMENDMENT TO REFLECT THE CLOSURE OF THE
ADMINISTRATIVE CONFERENCE.
(a) PROMOTION OF ADMINISTRATIVE DISPUTE RES-
OLUTIONS.—Section 3(a)(1) of the Administrative Dis-
pute Resolution Act (5 U.S.C. 571 note; Public Law 101–
552; 104 Stat. 2736) is amended to read as follows:
‘‘(1) consult with the agency designated by, or
the interagency committee designated or established
by, the President under section 573 of title 5, Unit-
ed States Code, to facilitate and encourage agency
use of alternative dispute resolution under sub-
chapter IV of chapter 5 of such title; and’’.
(b) COMPILATION OF INFORMATION.—
(1) IN
GENERAL.—Section 582 of title 5,
United States Code, is repealed.
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENT.—The table of sections for chapter 5 of title
5, United States Code, is amended by striking the
item relating to section 582.
(c) FEDERAL MEDIATION AND CONCILIATION SERV-
ICE.—Section 203(f) of the Labor Management Relations
Act, 1947 (29 U.S.C. 173(f)) is amended by striking ‘‘the
Administrative Conference of the United States and other
agencies’’ and inserting ‘‘the agency designated by, or the
interagency committee designated or established by, the
President under section 573 of title 5, United States
Code,’’.
SEC. 5. AMENDMENTS TO SUPPORT SERVICES PROVISION.
Section 583 of title 5, United States Code, is amend-
ed by inserting ‘‘State, local, and tribal governments,’’
after ‘‘other Federal agencies,’’.
SEC. 6. AMENDMENTS TO THE CONTRACT DISPUTES ACT.
Section 6 of the Contract Disputes Act of 1978 (41
U.S.C. 605) is amended—
(1) in subsection (d) by striking the second sen-
tence and inserting: ‘‘The contractor shall certify the
claim when required to do so as provided under sub-
section (c)(1) or as otherwise required by law.’’; and
(2) in subsection (e) by striking the first sen-
tence.
SEC. 7. AMENDMENTS ON ACQUIRING NEUTRALS.
(a) EXPEDITED HIRING OF NEUTRALS.—
(1) COMPETITIVE REQUIREMENTS IN DEFENSE
AGENCY CONTRACTS.—Section 2304(c)(3)(C) of title
10, United States Code, is amended by striking
‘‘agency, or’’ and inserting ‘‘agency, or to procure
the services of an expert or neutral for use’’.
(2) COMPETITIVE REQUIREMENTS IN FEDERAL
CONTRACTS.—Section 303(c)(3)(C) of the Federal
Property and Administrative Services Act of 1949
(41 U.S.C. 253(c)(3)(C)), is amended by striking
‘‘agency, or’’ and inserting ‘‘agency, or to procure
the services of an expert or neutral for use’’.
(b) REFERENCES
TO
THE ADMINISTRATIVE CON-
FERENCE OF THE UNITED STATES.—Section 573 of title
5, United States Code, is amended—
(1) by striking subsection (c) and inserting the
following:
‘‘(c) The President shall designate an agency or des-
ignate or establish an interagency committee to facilitate
and encourage agency use of dispute resolution under this
subchapter. Such agency or interagency committee, in con-
sultation with other appropriate Federal agencies and pro-
fessional organizations experienced in matters concerning
dispute resolution, shall—
‘‘(1) encourage and facilitate agency use of al-
ternative means of dispute resolution; and
‘‘(2) develop procedures that permit agencies to
obtain the services of neutrals on an expedited
basis.’’; and
(2) in subsection (e) by striking ‘‘on a roster es-
tablished under subsection (c)(2) or a roster main-
tained by other public or private organizations, or
individual’’.
SEC. 8. ARBITRATION AWARDS AND JUDICIAL REVIEW.
(a) ARBITRATION AWARDS.—Section 580 of title 5,
United States Code, is amended—
(1) by striking subsections (c), (f), and (g); and
(2) by redesignating subsections (d) and (e) as
subsections (c) and (d), respectively.
(b) JUDICIAL AWARDS.—Section 581(d) of title 5,
United States Code, is amended—
(1) by striking ‘‘(1)’’ after ‘‘(b)’’; and
(2) by striking paragraph (2).
(c) AUTHORIZATION OF ARBITRATION.—Section 575
of title 5, United States Code, is amended—
(1) in subsection (a)(2), by striking ‘‘Any’’ and
inserting ‘‘The’’;
(2) in subsection (a)(2), by adding at the end
the following: ‘‘Each such arbitration agreement
shall specify a maximum award that may be issued
by the arbitrator and may specify other conditions
limiting the range of possible outcomes.’’;
(3) in subsection (b)—
(A) by striking ‘‘may offer to use arbitra-
tion for the resolution of issues in controversy,
if’’ and inserting ‘‘shall not offer to use arbitra-
tion for the resolution of issues in controversy
unless’’; and
(B) by striking in paragraph (1) ‘‘has au-
thority’’ and inserting ‘‘would otherwise have
authority’’; and
(4) by adding at the end the following:
‘‘(c) Prior to using binding arbitration under this
subchapter, the head of an agency, in consultation with
the Attorney General and after taking into account the
factors in section 572(b), shall issue guidance on the ap-
propriate use of binding arbitration and when an officer
or employee of the agency has authority to settle an issue
in controversy through binding arbitration.’’.
SEC. 9. PERMANENT AUTHORIZATION OF THE ALTER-
NATIVE DISPUTE RESOLUTION PROVISIONS
OF TITLE 5, UNITED STATES CODE.
The Administrative Dispute Resolution Act (Public
Law 101–552; 104 Stat. 2747; 5 U.S.C. 571 note) is
amended by striking section 11.
SEC. 10. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—Subchapter IV of title 5, United
States Code, is amended by adding at the end thereof the
following new section:
‘‘§ 584. Authorization of appropriations
‘‘There are authorized to be appropriated such sums
as may be necessary to carry out the purposes of this sub-
chapter.’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—
The table of sections for chapter 5 of title 5, United States
Code, is amended by inserting after the item relating to
section 583 the following:
‘‘584. Authorization of appropriations.’’.
SEC. 11. REAUTHORIZATION OF NEGOTIATED RULEMAKING
ACT OF 1990.
(a) PERMANENT REAUTHORIZATION.—Section 5 of
the Negotiated Rulemaking Act of 1990 (Public Law 101–
648; 5 U.S.C. 561 note) is repealed.
(b) CLOSURE OF ADMINISTRATIVE CONFERENCE.—
(1) IN GENERAL.—Section 569 of title 5, Unit-
ed States Code, is amended—
(A) by amending the section heading to
read as follows:
‘‘§ 569. Encouraging negotiated rulemaking’’; and
(B) by striking subsections (a) through (g)
and inserting the following:
‘‘(a) The President shall designate an agency or des-
ignate or establish an interagency committee to facilitate
and encourage agency use of negotiated rulemaking. An
agency that is considering, planning, or conducting a ne-
gotiated rulemaking may consult with such agency or com-
mittee for information and assistance.
‘‘(b) To carry out the purposes of this subchapter,
an agency planning or conducting a negotiated rulemaking
may accept, hold, administer, and utilize gifts, devises,
and bequests of property, both real and personal if that
agency’s acceptance and use of such gifts, devises, or be-
quests do not create a conflict of interest. Gifts and be-
quests of money and proceeds from sales of other property
received as gifts, devises, or bequests shall be deposited
in the Treasury and shall be disbursed upon the order of
the head of such agency. Property accepted pursuant to
this section, and the proceeds thereof, shall be used as
nearly as possible in accordance with the terms of the
gifts, devises, or bequests.’’.
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENT.—The table of sections for chapter 5 of title
5, United States Code, is amended by striking the
item relating to section 569 and inserting the follow-
ing:
‘‘569. Encouraging negotiated rulemaking.’’.
(c) EXPEDITED
HIRING
OF
CONVENORS
AND
FACILITATORS.—
(1) DEFENSE
AGENCY
CONTRACTS.—Section
2304(c)(3)(C) of title 10, United States Code, is
amended by inserting ‘‘or negotiated rulemaking’’
after ‘‘alternative dispute resolution’’.
(2) 
FEDERAL
CONTRACTS.—Section
303(c)(3)(C) of the Federal Property and Adminis-
trative 
Services 
Act 
of 
1949 
(41 
U.S.C.
253(c)(3)(C)), is amended by inserting ‘‘or nego-
tiated 
rulemaking’’ 
after 
‘‘alternative 
dispute
resolution’’.
(d) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—Subchapter III of title 5,
United States Code, is amended by adding at the
end thereof the following new section:
‘‘§ 570a. Authorization of appropriations
‘‘There are authorized to be appropriated such sums
as may be necessary to carry out the purposes of this sub-
chapter.’’.
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENT.—The table of sections for chapter 5 of title
5, United States Code, is amended by inserting after
the item relating to section 570 the following:
‘‘570a. Authorization of appropriations.’’.
(e) NEGOTIATED RULEMAKING COMMITTEES.—The
Director of the Office of Management and Budget shall—
(1) within 180 days of the date of the enact-
ment of this Act, take appropriate action to expedite
the establishment of negotiated rulemaking commit-
tees and committees established to resolve disputes
under the Administrative Dispute Resolution Act, in-
cluding, with respect to negotiated rulemaking com-
mittees, eliminating any redundant administrative
requirements related to filing a committee charter
under section 9 of the Federal Advisory Committee
Act (5 U.S.C. App.) and providing public notice of
such committee under section 564 of title 5, United
States Code; and
(2) within one year of the date of the enact-
ment of this Act, submit recommendations to Con-
gress for any necessary legislative changes.
Passed the House of Representatives September 27,
1996.
Attest:
Clerk.