whichever occurs later, such employer shall provide to the
supervisory employee information specifying the respon-
sibilities of, and the methods to be used by, such employee
to ensure that immediate and corrective action is taken
to address allegations of sexual harassment in employ-
ment.
(d) CIVIL PENALTY.—A willful violation of this sec-
tion shall be punishable by a civil penalty of not more than
$1,000 for each separate violation.
SEC. 134. DUTIES OF THE COMMISSION.
(a) TECHNICAL ASSISTANCE MATERIALS.—Not later
than 180 days after the date of the enactment of this Act,
the Commission shall prepare, revise from time to time
as needed, and make available to employers at no cost (by
publication in the Federal Register or other means)—
(1) a model notice of the kind required by sec-
tion 133(a) to be posted,
(2) a model notice of the kind required by sec-
tion 133(b) to be provided to employees, and
(3) voluntary guidelines for the establishment of
policies and procedures by employers to address alle-
gations of discrimination (including sexual harass-
ment) in employment.
(b) TOLL-FREE TELEPHONE NUMBER.—Not later
than 180 days after the date of the enactment of this Act,
the Commission shall provide a toll-free telephone number
for use by employees and employers in the United States
to obtain—
(1) information regarding compliance with this
subtitle, and
(2) the model notices and guidelines prepared
under subsection (a).
SEC. 135. ENFORCEMENT.
Section 133 shall be enforced—
(1) by the Commission with respect to viola-
tions alleged by employees as defined in subpara-
graphs (A), (B), and (E) of section 136(2),
(2) by the House of Representatives in the
manner described in section 117(a)(2)(B) of the
Civil Rights Act of 1992 (2 U.S.C. 60l) with respect
to violations alleged by employees as defined in sec-
tion 136(2)(C) of this subtitle, and
(3) by the Senate in the manner described in
the Government Employee Rights Act of 1992 (2
U.S. 120 et seq.) with respect to violations alleged
by employees as defined in section 136(2)(D) of this
subtitle.
SEC. 136. DEFINITIONS.
For purposes of this subtitle—
(1) the term ‘‘Commission’’ means the Equal
Employment Opportunity Commission,
(2) the term ‘‘employee’’ means—
(A) an employee as defined in section
701(f) of the Civil Rights Act of 1964 (42
U.S.C. 2000e(f)),
(B) an employee referred to in section
717(a) of such Act (42 U.S.C. 2000e-16(a)),
(C) an employee in an employment position
of the House of Representatives,
(D) a Senate employee as defined in sec-
tion 301(c)(1) of the Government Employee
Rights Act of 1991 (2 U.S.C. 1201(c)(1)), or
(E) an employee (other than a Senate em-
ployee) in an employment position of an instru-
mentality of the Congress,
(3) the term ‘‘employer’’ means—
(A) an employer as defined in section
701(b) of the Civil Rights Act of 1964 (42
U.S.C. 2000e(b)),
(B) a Federal entity to which section
717(a) of the Civil Rights Act of 1964 (42
U.S.C. 2000e-716(a)) applies, or
(C) an employing authority of the House
of Representatives, of the Senate, or of an in-
strumentality of the Congress,
(4) the term ‘‘instrumentality of the Congress’’
means the Architect of the Capitol, the Congres-
sional Budget Office, the Office of Technology As-
sessment, the United States Botanic Garden, and
those units of the Government Printing Office with
positions in the excepted service, and
(5) the term ‘‘sexual harassment’’ has the same
meaning as such term has for purposes of title VII
of the Civil Rights Act of 1964 (42 U.S.C. 2000e-
2000e–17).
SEC. 137. EFFECTIVE DATES.
(a) GENERAL EFFECTIVE DATE.—Except as pro-
vided in subsection (b), this subtitle shall take effect on
the date of the enactment of this Act.
(b) EFFECTIVE DATE OF SECTION 3.—Section 133
shall take effect 1 year after the date of the enactment
of this Act.
Subtitle E—Part-Time and
Temporary Workers Protection Act
SEC. 141. SHORT TITLE.
This subtitle may be cited as the ‘‘Part-Time and
Temporary Workers Protection Act of 1993’’.
SEC. 142. ELIGIBILITY FOR UNEMPLOYMENT COMPENSA-
TION OF CERTAIN INDIVIDUALS SEEKING
PART-TIME EMPLOYMENT.
(a) GENERAL RULE.—Subsection (a) of section 3304
of the Internal Revenue Code of 1986 (relating to require-
ments for approval of State unemployment compensation
laws) is amended by striking ‘‘and’’ at the end of para-
graph (17), by redesignating paragraph (18) as paragraph
(19), and by inserting after paragraph (17) the following
new paragraph:
‘‘(18) in applying the State law provisions relat-
ing to availability for work, active search for work,
or refusal to accept work, the term ‘suitable work’
shall not include any work where the individual
would normally perform services for more hours per
week than the number of hours per week for which
the individual normally performed services in the in-
dividual’s last job in the base period, and’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on the date of the enact-
ment of this Act.
SEC. 143. ANNUAL BUREAU OF LABOR STATISTICS SURVEY
RELATING TO TEMPORARY WORKERS.
The Secretary of Labor, acting through the Commis-
sioner of the Bureau of Labor Statistics, shall establish
and carry out an annual survey identifying—
(1) the characteristics of temporary workers in
the United States;
(2) the relationship between such workers and
the establishments at which such workers are tempo-
rarily employed; and
(3) where appropriate, the relationship between
such workers and their permanent employers.
SEC. 144. PROTECTION OF PART-TIME AND TEMPORARY
WORKERS.
(a) TREATMENT OF EMPLOYEES WORKING AT LESS
THAN FULL-TIME UNDER PARTICIPATION, VESTING, AND
ACCRUAL RULES GOVERNING PENSION PLANS.—
(1) PARTICIPATION RULES.—
(A) IN
GENERAL.—Section 202(a)(3) of
the Employee Retirement Income Security Act
of 1974 (29 U.S.C. 1052(a)(3)) is amended by
adding at the end the following new subpara-
graph:
‘‘(E)(i) For purposes of this paragraph, in the case
of any employee who, as of the beginning of the 12-month
period referred to in subparagraph (A)—
‘‘(I) has customarily completed 500 or more
hours of service per year but less than 1,000 hours
of service per year, or
‘‘(II) is employed in a type of position in which
employment customarily constitutes 500 or more
hours of service per year but less than 1,000 hours
of service per year,
completion of 500 hours of service within such 12-month
period shall be treated as completion of 1,000 hours of
service.
‘‘(ii) For purposes of this subparagraph, the extent
to which employment in any type of position customarily
constitutes less than 1,000 hours of service per year shall
be determined with respect to each pension plan in accord-
ance with such regulations as the Secretary may prescribe
providing for consideration of facts and circumstances pe-
culiar to the work-force constituting the participants in
such plan.’’.
(B) CONFORMING
AMENDMENT.—Section
204(b)(1)(E) 
of 
such 
Act 
(29 
U.S.C.
1054(b)(1)(E)) is amended by striking ‘‘section
202(a)(3)(A)’’ and inserting ‘‘subparagraphs
(A) and (E) of section 202(a)(3)’’.
(2) VESTING RULES.—
(A) IN
GENERAL.—Section 203(b)(2) of
such Act (29 U.S.C. 1053(b)(2)) is amended by
adding at the end the following new subpara-
graph:
‘‘(E)(i) For purposes of this paragraph, in the case
of any employee who, as of the beginning of the period
designated by the plan pursuant to subparagraph (A)—
‘‘(I) has customarily completed 500 or more
hours of service per year but less than 1,000 hours
of service per year, or
‘‘(II) is employed in a type of position in which
employment customarily constitutes 500 or more
hours of service per year but less than 1,000 hours
of service per year,
completion of 500 hours of service within such period shall
be treated as completion of 1,000 hours of service.
‘‘(ii) For purposes of this subparagraph, the extent
to which employment in any type of position customarily
constitutes less than 1,000 hours of service per year shall
be determined with respect to each pension plan in accord-
ance with such regulations as the Secretary may prescribe
providing for consideration of facts and circumstances pe-
culiar to the work-force constituting the participants in
such plan.’’.
(B) 1-YEAR BREAKS IN SERVICE.—Section
203(b)(3) of such Act (29 U.S.C. 1053(b)(3))
is amended by adding at the end the following
new subparagraph:
‘‘(F)(i) For purposes of this paragraph, in the case
of any employee who, as of the beginning of the period
designated by the plan pursuant to subparagraph (A)—
‘‘(I) has customarily completed 500 or more
hours of service per year but less than 1,000 hours
of service per year, or
‘‘(II) is employed in a type of position in which
employment customarily constitutes 500 or more
hours of service per year but less than 1,000 hours
of service per year,
completion of 250 hours of service within such period shall
be treated as completion of 500 hours of service.
‘‘(ii) For purposes of this subparagraph, the extent
to which employment in any type of position customarily
constitutes less than 1,000 hours of service per year shall
be determined with respect to each pension plan in accord-
ance with such regulations as the Secretary may prescribe
providing for consideration of facts and circumstances pe-
culiar to the work-force constituting the participants in
such plan.’’.
(3) ACCRUAL RULES.—Section 204(b)(4)(C) of
such Act (29 U.S.C. 1054(b)(4)(C)) is amended—
(A) by inserting ‘‘(i)’’ after ‘‘(C)’’; and
(B) by adding at the end the following new
clauses:
‘‘(ii) For purposes of this subparagraph, in the case
of any employee who, as of the beginning of the period
designated by the plan pursuant to clause (i)—
‘‘(I) has customarily completed 500 or more
hours of service per year but less than 1,000 hours
of service per year, or
‘‘(II) is employed in a type of position in which
employment customarily constitutes 500 or more
hours of service per year but less than 1,000 hours
of service per year,
completion of 500 hours of service within such period shall
be treated as completion of 1,000 hours of service.
‘‘(iii) For purposes of clause (ii), the extent to which
employment in any type of position customarily constitutes
less than 1,000 hours of service per year shall be deter-
mined with respect to each pension plan in accordance
with such regulations as the Secretary may prescribe pro-
viding for consideration of facts and circumstances pecu-
liar to the work-force constituting the participants in such
plan.’’.
(b) TREATMENT OF EMPLOYEES WORKING AT LESS
THAN FULL-TIME UNDER GROUP HEALTH PLANS.
(1) IN GENERAL.—Part 2 of subtitle B of title
I of such Act is amended—
(A) by redesignating section 211 (29
U.S.C. 1061) as section 212; and
(B) by inserting after section 210 (29
U.S.C. 1060) the following new section:
‘‘TREATMENT OF PART-TIME WORKERS UNDER GROUP
HEALTH PLANS
‘‘SEC. 211. (a) IN GENERAL.—A reduction in the em-
ployer-provided premium under a group health plan with
respect to any employee for any period of coverage solely
because the employee’s customary employment is less than
full-time may be provided under such plan only if the em-
ployee is described in subsection (b) and only to the extent
permitted under subsection (c).
‘‘(b) REDUCTIONS
APPLICABLE
TO
EMPLOYEES
WORKING LESS THAN FULL-TIME.—
‘‘(1) IN GENERAL.—An employee is described in
this subsection if such employee, as of the beginning
of the period of coverage referred to in subsection
(a)—
‘‘(A) has customarily completed less than
30 hours of service per week, or
‘‘(B) is employed in a type of position in
which employment customarily constitutes less
than 30 hours of service per week.
‘‘(2) REGULATIONS.—For purposes of para-
graph (1), whether employment in any type of posi-
tion customarily constitutes less than 30 hours of
service per week shall be determined with respect to
each group health plan in accordance with such reg-
ulations as the Secretary may prescribe providing
for consideration of facts and circumstances peculiar
to the work-force constituting the participants in
such plan.
‘‘(c) AMOUNT OF PERMISSIBLE REDUCTION.—The
employer-provided premium under a group health plan
with respect to any employee for any period of coverage,
after the reduction permitted under subsection (a), shall
not be less than a ratable portion of the employer-provided
premium which would be provided under such plan for
such period of coverage with respect to an employee who
completes 30 hours of service per week.
‘‘(d) DEFINITIONS.—For purposes of this section—
‘‘(1) GROUP HEALTH PLAN.—The term ‘group
health plan’ has the meaning provided such term in
section 607(1).
‘‘(2) EMPLOYER-PROVIDED PREMIUM.—
‘‘(A) IN GENERAL.—The term ‘employer-
provided premium’ under a plan for any period
of coverage means the portion of the applicable
premium under the plan for such period of cov-
erage which is attributable under the plan to
employer contributions.
‘‘(B) APPLICABLE
PREMIUM.—For pur-
poses of subparagraph (A), in determining the
applicable premium of a group health plan,
principles similar to the principles applicable
under section 604 shall apply.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 201(1) of such Act (29 U.S.C.
1051(1)) is amended by inserting ‘‘, except with
respect to section 211’’ before the semicolon.
(B) The table of contents in section 1 of
such Act is amended by striking the item relat-
ing to section 211 and inserting the following
new items:
‘‘Sec. 211. Treatment of part-time workers under group health plans.
‘‘Sec. 212. Effective date.’’.
(c) EXPANSION OF DEFINITION OF EMPLOYEE TO
INCLUDE CERTAIN INDIVIDUALS WHOSE SERVICES ARE
LEASED OR CONTRACTED FOR.—Paragraph (6) of section
3 of such Act (29 U.S.C. 1002(6)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(6)’’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(B) Such term includes, with respect to any em-
ployer, any person who is not an employee (within the
meaning of subparagraph (A)) of such employer and who
provides services to such employer, if—
‘‘(i) such person has (pursuant to an agreement
with such employer or any other person) performed
such services for such employer (or for such em-
ployer and related persons (within the meaning of
section 144(a)(3) of the Internal Revenue Code of
1986)) for a period of at least 1 year (6 months in
the case of core health benefits) at the rate of at
least 500 hours of service per year, and
‘‘(ii) such services are of a type historically per-
formed, in the business field of the employer, by em-
ployees (within the meaning of subparagraph (A)).’’.
(d) EFFECTIVE DATES.
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall apply with respect to plan years beginning on
or after January 1, 1994.
(2) SPECIAL
RULE
FOR
COLLECTIVELY
BAR-
GAINED PLANS.—In the case of a plan maintained
pursuant to 1 or more collective bargaining agree-
ments between employee representatives and 1 or
more employers ratified on or before the date of the
enactment of this Act, paragraph (1) shall be ap-
plied to benefits pursuant to, and individuals covered
by, any such agreement by substituting for ‘‘Janu-
ary 1, 1994’’ the date of the commencement of the
first plan year beginning on or after the earlier of—
(A) the later of—
(i) January 1, 1994, or
(ii) the date on which the last of such
collective bargaining agreements termi-
nates (determined without regard to any
extension thereof after the date of the en-
actment of this Act), or
(B) January 1, 1996.
(3) PLAN
AMENDMENTS.—If any amendment
made by this section requires an amendment to any
plan, such plan amendment shall not be required to
be made before the first plan year beginning on or
after January 1, 1995, if—
(A) during the period after such amend-
ment made by this section takes effect and be-
fore such first plan year, the plan is operated
in accordance with the requirements of such
amendment made by this section, and
(B) such plan amendment applies retro-
actively to the period after such amendment
made by this section takes effect and such first
plan year.
A plan shall not be treated as failing to provide defi-
nitely determinable benefits or contributions, or to
be operated in accordance with the provisions of the
plan, merely because it operates in accordance with
this paragraph.
Subtitle F—Unemployment
Insurance Reform
SEC. 151. UNEMPLOYMENT INSURANCE REFORM.
(a) Subsection (a) of section 3304 of the Internal
Revenue Code of 1986 (relating to approval of State un-
employment compensation laws) is amended by striking
‘‘and’’ at the end of paragraph (17), by redesignating
paragraph (18) as paragraph (19), and by inserting after
paragraph (17) the following new paragraph:
‘‘(18)(A) if any individual leaves employment
for a qualified family-related reason, for purposes of
determining such individual’s eligibility for com-
pensation for any subsequent week for which such
individual meets the State law requirements relating
to availability for work and active search for work—
‘‘(i) such individual shall be treated as
leaving such employment for good cause, and
‘‘(ii) any failure while the qualified family-
related reason continues to return to such em-
ployment or to otherwise meet such State law
requirements shall be disregarded,
‘‘(B) for purposes of subparagraph (A), the
term ‘qualified family reason’ means any cir-
cumstance which entitles the individual to unpaid
leave under the Family and Medical Leave Act of
1993 (or would entitle the individual to such leave
if the individual’s employer were subject to the re-
quirements of such Act) whether or not the individ-
ual returns to employment after the leave to which
such individual is (or would be entitled); and’’.
(b)(1) Except as provided by paragraph (2), the
amendment made by subsection (a) shall take effect on
November 1, 1993.
(2) In the case of any State the legislature of which
has not been in session for at least 30 calendar days
(whether or not successive) between the date of the enact-
ment of this Act and November 1, 1993, the amendment
made by subsection (a) shall take effect 30 calendar days
after the first day on which such legislature is in session
on or after November 1, 1993.
Subtitle G—Federal Temporary
Workers Protection Act
SEC. 161. ELIGIBILITY FOR HEALTH BENEFITS.
(a) IN GENERAL.—Paragraph (4) of section 8913(b)
of title 5, United States Code, is amended to read as fol-
lows:
‘‘(4) an employee who is occupying a position
on a temporary basis, if such employee has, in the
aggregate, completed the equivalent of at least 1
year of service in such position within the preceding
2 years.’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 8906a of title 5, United States Code, is re-
pealed.
(2) The table of sections for chapter 89 of title 5,
United States Code, is amended by striking the item relat-
ing to section 8906a.
SEC. 162. EFFECTIVE DATE.
(a) IN GENERAL.—This Act and the amendments
made by this Act shall take effect on the date of the enact-
ment of this Act, and any change in contributions payable
by or on behalf of an individual to the Employees Health
Benefits Fund (described in section 8909 of title 5, United
States Code) as a result of the enactment of this Act shall
take effect as of the first applicable pay period beginning
on or after such date.
(b) CREDITABILITY
OF PRIOR SERVICE.—Service
performed before the effective date of this Act may be
taken into account for purposes of the amendment made
by section 161(a).
Subtitle H—Legislative Pay Equity
Study
SEC. 171. DECLARATION OF POLICY.
The Congress is committed to the elimination of all
forms of discrimination that adversely affect pay or work-
ing conditions of any employee because of the race, color,
religion, sex, or national origin of the employee, and it is
the policy of the Congress that persons employed in the
legislative branch shall receive equal pay in cases in which
the work performed is comparable, as measured by the
composite of skill, effort, responsibility, and working con-
ditions normally required in the performance of the job.
SEC. 172. ESTABLISHMENT OF COMMISSION.
(a) IN GENERAL.—There is established the Commis-
sion on Employment Discrimination in the Legislative
Branch (hereinafter in this resolution referred to as the
‘‘Commission’’).
(b) APPOINTMENT OF MEMBERS.—The Commission
shall consist of thirteen members to be appointed for the
life of the Commission as follows:
(1) Four shall be Members of the House of
Representatives, appointed by the Speaker of the
House of Representatives, two upon recommendation
of the majority leader and two upon recommendation
of the minority leader.
(2) Four shall be Senators, appointed by the
President pro tempore, two upon recommendation of
the majority leader and two upon recommendation of
the minority leader.
(3) Two shall be other than Members of Con-
gress, appointed by the Speaker of the House of
Representatives and shall, to the extent practicable,
be persons with expertise in job evaluation. One such
member shall be appointed upon recommendation of
the majority leader and one upon recommendation of
the minority leader.
(4) Two shall be other than Members of Con-
gress, appointed by the President pro tempore of the
Senate and shall, to the extent practicable, be per-
sons with expertise in job evaluation. One such
member shall be appointed upon recommendation of
the majority leader and one shall be appointed upon
recommendation of the minority leader.
(5) One shall be appointed by the Speaker of
the House of Representatives and the President pro
tempore of the Senate, acting jointly, upon rec-
ommendation of the members appointed under para-
graphs (1) through (4).
(c) PREREQUISITES RELATING
TO CERTAIN AP-
POINTMENTS.—(1) Of the members of the Commission ap-
pointed under subsection (b)(3)—
(A) one shall be a member of one of the two
largest labor unions at the Library of Congress; and
(B) one shall be a manager at the Library of
Congress.
(2) Of the members of the Commission appointed
under subsection (b)(4)—
(A) one shall be a member of one of the two
largest labor unions at the Library of Congress; and
(B) one shall be a manager at the Library of
Congress.
(3) The member appointed under paragraph (1)(A)
shall not be from the same labor union as the member
appointed under paragraph (2)(A).
(d) REMOVAL.—The person making an appointment
may remove a member of the Commission for neglect of
duty or malfeasance in office.
(e) VACANCIES.—A vacancy in the Commission shall
be filled in the manner in which the original appointment
is made.
(f) CHAIRMAN; VICE CHAIRMAN.—The Commission
shall elect a chairman and a vice chairman from among
its members. The chairman and vice chairman shall not
be of the same political party.
(g) QUORUM.—Seven members of the Commission
shall constitute a quorum for the transaction of business,
but the Commission may establish a lesser number for
holding hearings, taking testimony, and receiving evi-
dence.
(h) COMMENCEMENT
OF OPERATIONS.—Members
shall be appointed and the Commission shall commence
operation not later than four weeks after the date on
which this resolution is agreed to.
SEC. 173. FUNCTIONS OF COMMISSION.
(a) IN GENERAL.—The Commission shall—
(1) employ a nongovernmental consultant with
expertise in job evaluation to study and compare the
compensation paid within and between job classifica-
tions in the Library of Congress and to analyze per-
sonnel policies and practices in the Library of Con-
gress;
(2) evaluate the compensation system and per-
sonnel policies and practices in the Library of Con-
gress for compliance with title VII of the Civil
Rights Act of 1964 and make specific recommenda-
tions (other than any recommendation that, if imple-
mented, would result in a reduction in the rate of
pay payable for any position) to the Congress for
such action as may be necessary to achieve that
compliance;
(3) develop a comprehensive plan for applica-
tion of the principles of title VII of the Civil Rights
Act of 1964 throughout the legislative branch; and
(4) make specific recommendations (other than
any recommendation that, if implemented, would re-
sult in a reduction in the rate of pay payable for any
position) to the Congress for improvement of person-
nel policies and practices in the legislative branch
that may be necessary to carry out the policy de-
clared in section 171.
(b) SPECIFIC REQUIREMENT RELATING
TO
THE
CONSULTANT.—In carrying out the requirements of para-
graph (1) of subsection (a), the consultant employed under
such paragraph shall use standard objective job-evaluation
101
equal to the daily equivalent of the maximum annual rate
of basic pay payable under the General Schedule (as deter-
mined under section 5376 of title 5, United States Code)
for each day, including travel time, such member is en-
gaged in the performance of duties of the Commission.
SEC. 176. POWERS OF COMMISSION.
The Commission may hold hearings, take testimony,
receive evidence, administer oaths or affirmations to wit-
nesses appearing before it, and authorize any member or
agent of the Commission to exercise such powers.
SEC. 177. REPORTS AND TERMINATION OF COMMISSION.
The Commission may submit interim reports to the
Congress and shall submit a final report to the Congress
not later than 18 months after the date on which this reso-
lution is agreed to. The Commission shall cease to exist
thirty days after submitting the final report.
SEC. 178. ADMINISTRATIVE PROVISIONS.
(a) FUNDING.—There shall be paid from the contin-
gent fund of the House of Representatives and the contin-
gent fund of the Senate such sums as may be necessary
to carry out this resolution. One-half of the total of such
sums shall be paid from each such fund. Payment shall
be upon vouchers submitted by the Chairman of the Com-
mission and approved by the Committee on House Admin-
istration of the House of Representatives or the Commit-
102
tee on Rules and Administration of the Senate, as appro-
priate.
(b) STATUS OF MEMBERS AND STAFF.—Members of
the Commission (other than Members of Congress) and
the staff of the Commission shall be treated as detailed
employees, or as temporary or intermittent employees of
the House or of the Senate, as appropriate.
(c) REGULATIONS.—The Committee on House Ad-
ministration of the House of Representatives and the
Committee on Rules and Administration of the Senate,
acting jointly, shall prescribe such regulations as may be
necessary to carry out this resolution. Employment of ex-
perts and consultants, travel, procurement of support
services, procedures for securing information, and other
administrative matters with respect to the Commission
shall be in accordance with such regulations.
TITLE II—ECONOMIC
OPPORTUNITY
Subtitle A—Women’s Business
Procurement Assistance Act
SEC. 201. SHORT TITLE.
This subtitle may be cited as the ‘‘Women’s Business
Procurement Assistance Act of 1993’’.
103
SEC. 202. GOAL SETTING.
Section 15(g) of the Small Business Act (15 U.S.C.
644(g)) is amended—
(1) in paragraph (1) by inserting ‘‘, small busi-
ness concerns owned and controlled by women,’’
after ‘‘small business concerns’’ the first place it ap-
pears in the first sentence and the first place it ap-
pears in the fourth sentence;
(2) in the first sentence of paragraph (2) by in-
serting ‘‘by small business concerns owned and con-
trolled by women,’’ after ‘‘small business concerns,’’;
(3) in the second sentence of paragraph (2) by
inserting ‘‘, small business concerns owned and con-
trolled by women,’’ after ‘‘small business concerns’’
the first place it appears; and
(4) in the fourth sentence of paragraph (2) by
inserting ‘‘small business concerns owned and con-
trolled by women and’’ after ‘‘including participation
by’’.
SEC. 203. REPORTING.
Section 15(h) of the Small Business Act (15 U.S.C.
644(h)) is amended—
(1) by inserting ‘‘, small business concerns
owned and controlled by women,’’ after ‘‘small busi-
ness concerns’’ the first place it appears in para-
graph (1), the first place it appears in paragraph
104
(2)(A), and the first place it appears in paragraph
(2)(D);
(2) in paragraph (1) by inserting ‘‘and sub-
contracts’’ after ‘‘contracts’’;
(3) by adding at the end of paragraph (1) the
following new sentence: ‘‘The Administration shall
submit to the Committee on Small Business of the
Senate and the Committee on Small Business of the
House of Representatives information obtained from
such reports, together with appropriate comments.’’;
and
(4) in paragraph (2)(F) by striking ‘‘women-
owned small business enterprises’’ and inserting
‘‘small business concerns owned and controlled by
women’’.
SEC. 204. SUBCONTRACTING.
(a) STATEMENT OF POLICY.—Section 8(d)(1) of the
Small Business Act (15 U.S.C. 637(d)(1)) is amended—
(1) in the first sentence by inserting ‘‘small
business concerns owned and controlled by women,’’
after ‘‘small business concerns,’’; and
(2) in the second sentence by inserting ‘‘, small
business concerns owned and controlled by women,’’
after ‘‘small business concerns’’ the first place it
appears.
105
(b) CONTRACT CLAUSE.—The contract clause speci-
fied in section 8(d)(3) of the Small Business Act (15
U.S.C. 637(d)(3)) is amended as follows:
(1) Subparagraph (A) of such clause is amend-
ed by inserting ‘‘, small business concerns owned
and controlled by women,’’ after ‘‘small business
concerns’’ the first place it appears in the first sen-
tence and the first place it appears in the second
sentence.
(2) Subparagraph (C) of such clause is amend-
ed to read as follows:
‘‘(C)(i) As used in this contract, the term ‘small
business concern’ means a small business concern as
defined pursuant to section 3 of the Small Business
Act and relevant regulations promulgated pursuant
thereto.
‘‘(ii) As used in this contract, the term ‘small
business concern owned and controlled by socially
and economically disadvantaged individuals’ means a
small business concern—
‘‘(I) which is at least 51 percent owned by
one or more socially and economically disadvan-
taged individuals; or, in the case of any publicly
owned business, at least 51 percent of the stock
106
of which is owned by one or more socially and
economically disadvantaged individuals; and
‘‘(II) whose management and daily busi-
ness operations are controlled by one or more of
such individuals.
The contractor shall presume that socially and eco-
nomically disadvantaged individuals include Black
Americans, Hispanic Americans, Native Americans,
Asian Pacific Americans, and other minorities, or
any other individual found to be disadvantaged by
the Administration pursuant to section 8(a) of the
Small Business Act.
‘‘(iii) As used in this contract, the term ‘small
business concern owned and controlled by women’
means a small business concern—
‘‘(I) which is at least 51 percent owned by
one or more women; or, in the case of any pub-
licly owned business, at least 51 percent of the
stock of which is owned by one or more women;
and
‘‘(II) whose management and daily busi-
ness operations are controlled by such women.
The contractor shall presume that women have been
subjected to gender based discrimination and may
determine whether a small business concern meets
107
the percentage requirements under subclause (I)
without regard to the community property laws of
any jurisdiction.’’.
(c) CONFORMING AMENDMENTS.—Section 8(d) of
the Small Business Act (15 U.S.C. 637(d)) is amended
by inserting ‘‘, small business concerns owned and con-
trolled by women,’’ after ‘‘small business concerns’’ the
first place it appears in paragraphs (3)(D), (4)(D),
(4)(E), (6)(A), (6)(C), (6)(F), (10)(B), and (11).
(d) EXCLUSION.—No business concern shall be
deemed eligible for any contract or other assistance pursu-
ant to section 2323 of title 10, United States Code, due
solely to the provisions of this section.
SEC. 205. WOMEN-IN-BUSINESS SPECIALISTS.
Section 15(k) of the Small Business Act (15 U.S.C.
644(k)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(k)’’;
(2) by redesignating paragraphs (1), (2), (3),
(4), (5), (6), (7), (8), and (9) as subparagraphs (A),
(B), (C), (D), (E), (F), (G), (H), and (I), respec-
tively;
(3) by striking ‘‘and’’ at the end of subpara-
graph (H) (as redesignated);
(4) in subparagraph (I) (as redesignated), by
striking out the period after ‘‘Code’’ and all that fol-
108
lows through ‘‘shall be made’’ and inserting in lieu
thereof a comma, and by striking the period after
‘‘contract file’’ and inserting ‘‘, and’’;
(5) by inserting after subparagraph (I) (as re-
designated) the following new subparagraph:
‘‘(J) subject to paragraph (2)(A), designate an
employee of such office to be a women-in-business
specialist responsible for the implementation and
execution of programs designed to assist small busi-
ness concerns owned and controlled by women.’’;
(6) by designating the last sentence as para-
graph (2); and
(7) by adding at the end the following new
paragraph:
‘‘(3)(A) The Director of Small and Disadvantaged
Business Utilization in a Federal agency shall ensure that
the women-in-business specialist designated pursuant to
paragraph (1)(J) has sufficient knowledge of small busi-
ness concerns owned and controlled by women and the
Federal procurement process, other appropriate qualifica-
tions, and appropriate training from the Office of Wom-
en’s Business Ownership to effectively carry out the spe-
cialist’s responsibilities under this Act.
‘‘(B) Each women-in-business specialist designated
pursuant to paragraph (1)(J) in a Federal agency shall
109
work full time to initiate and execute programs to assist
small business concerns owned and controlled by women
in participating in the performance of contracts let by the
agency. The specialist shall—
‘‘(i) respond to requests from small business
concerns owned and controlled by women;
‘‘(ii) identify and solicit offers from small busi-
ness concerns owned and controlled by women, as
required under section 15(p) of this Act, through
means such as sending solicitation packages to such
concerns for each proposed contract for which such
concerns may be eligible to compete and holding
workshops on procurement for such concerns; and
‘‘(iii) regularly monitor the agency’s progress
toward meeting the annual goal established under
subsection (g) for participation by small business
concerns owned and controlled by women.’’.
SEC. 206. OUTREACH.
Section 15 the Small Business Act (15 U.S.C. 644)
is amended by adding at the end the following new sub-
section:
‘‘(p) Each Federal agency having procurement pow-
ers shall engage in affirmative efforts to identify and so-
licit offers from small business concerns owned and con-
trolled by women and the small business concerns owned
110
and controlled by socially and economically disadvantaged
individuals. To the maximum extent practicable, a rep-
resentative number of such concerns shall receive solicita-
tion packages for each proposed acquisition for which such
concerns may be eligible to compete.’’.
SEC. 207. ESTABLISHMENT OF THE OFFICE OF WOMEN’S
BUSINESS OWNERSHIP.
The Small Business Act (15 U.S.C. 631 et seq.) is
amended by adding at the end the following new section:
‘‘SEC. 28. OFFICE OF WOMEN’S BUSINESS OWNERSHIP.
‘‘(a) ESTABLISHMENT.—There is established in the
Small Business Administration the Office of Women’s
Business Ownership (hereinafter in this section referred
to as the ‘Office’).
‘‘(b) DIRECTOR.—The Director of the Office (herein-
after in this section referred to as the ‘Director’) shall be
appointed by the Administrator not later than sixty days
after the date of the enactment of this section.
‘‘(c) FUNCTIONS.—The Director shall perform the
following functions:
‘‘(1) Promote, coordinate, and monitor the
plans, programs, and operations of Federal depart-
ments and agencies which may contribute to the es-
tablishment, preservation, and strengthening of
small business concerns owned and controlled by
112
ness ownership and provide recommendations for fu-
ture actions to the Administrator.
‘‘(5) Convene and consult (as necessary) with
persons inside and outside government to develop
and promote new ideas concerning the development
of small business concerns owned and controlled by
women.
‘‘(6) Consider the findings and recommenda-
tions of government and private sector investigations
and studies of the problems of women entrepreneurs,
and promote further research into such problems.
‘‘(7) Monitor the contracting and subcontract-
ing performance of each department, agency, and
business enterprise participating under this section.
‘‘(8) Promote access and participation for small
business concerns owned and controlled by women to
a fair proportion of the broad array of purchases
and contracts for property and services for the Fed-
eral Government.
‘‘(9) Provide training as needed to women-in-
business specialists designated pursuant to section
15(k)(1)(J) to carry out their responsibilities under
this Act.’’.
113
SEC. 208. GENERAL ACCOUNTING OFFICE REPORT.
(a) REPORT REQUIREMENT.—Not later than 3 years
after the date of the enactment of this Act, the Comptrol-
ler General shall submit to Congress a report comparing
the number of small business concerns owned and con-
trolled by women procuring Federal contracts during the
year preceding the date of the enactment of this Act with
the number of such businesses during each of the 3 years
occurring after such date. If the number of such busi-
nesses did not increase significantly by the end of the 3-
year period beginning on the date of the enactment of this
Act, the Comptroller General shall include in the report
recommendations on actions that could be taken to
increase the number.
(b) SENSE OF CONGRESS.—If the report required
under subsection (a) shows that the number of small busi-
ness concerns owned and controlled by women did not in-
crease significantly by the end of the 3-year period begin-
ning on the date of the enactment of this Act, it is the
sense of Congress that further legislative steps should be
taken to ensure that the number of Federal contracts en-
tered into with small business concerns owned and con-
trolled by women realistically reflects the potential of such
business concerns to perform Federal contracting and sub-
contracting work.
114
Subtitle B—Microenterprise
Opportunity Expansion Act
SEC. 211. SHORT TITLE.
This subtitle may be cited as the ‘‘Microenterprise
Opportunity Expansion Act’’.
SEC. 212. PUBLIC ASSISTANCE PROVISIONS.
(a) BUSINESS ASSETS EXCLUDED FROM RESOURCES
AND INCOME.—
(1) AFDC.—
(A) EXCLUSION FROM RESOURCES.—Sec-
tion 402(a)(7)(B) of the Social Security Act
(42 U.S.C. 602(a)(8)(A)) is amended—
(i) by striking ‘‘or’’ at the end of
clause (iii); and
(ii) by inserting before the semicolon
the following: ‘‘, or (v) any asset of the
family which is primarily used for business
purposes in a business owned, in whole or
in part, by an individual eligible for aid
under any State plan approved under this
part; and’’.
(B) EXCLUSION
FROM
INCOME.—Section
402(a)(8)(A) 
of 
such 
Act 
(42 
U.S.C.
602(a)(8)(A)) is amended—
115
(i) by striking ‘‘and’’ at the end of
clause (vii); and
(ii) by inserting after clause (viii) the
following:
‘‘(ix) shall disregard from the income of
any child, relative, or other individual specified
in clause (ii) any asset which is primarily used
for business purposes in a business owned, in
whole or in part, by an individual eligible for
aid under any State plan approved under this
part; and’’.
(2) SSI.—
(A) EXCLUSION
FROM
INCOME.—Section
1612(b) of such Act (42 U.S.C. 1382a(b)) is
amended—
(i) by striking ‘‘and’’ at the end of
paragraph (17);
(ii) in paragraph (18), by striking the
period and inserting ‘‘; and’’; and
(iii) by adding at the end the follow-
ing:
‘‘(19) any asset of such individual (or such
spouse) which is primarily used for business pur-
poses in a business owned, in whole or in part, by
116
an individual eligible for aid under any State plan
approved under part A of title IV.’’.
(B) EXCLUSION FROM RESOURCES.—Sec-
tion 1613(a) of such Act (42 U.S.C. 1382b(a))
is amended—
(i) by striking ‘‘and’’ at the end of
paragraph (9);
(ii) in paragraph (10), by striking the
period and inserting ‘‘; and’’; and
(iii) by inserting after paragraph (10)
the following:
‘‘(11) any asset of (including any amount re-
ceived as a loan by) such individual (or such spouse)
which is primarily used for business purposes in a
business owned, in whole or in part, by an individual
eligible for aid under any State plan approved under
part A of title IV.’’.
(b) PUBLIC ASSISTANCE BENEFITS EXTENDED FOR
PERSONS WITH INCOME FROM
OR RESOURCES
IN
A
MICROENTERPRISE.—
(1) AFDC AND MEDICAID.—Section 402(a) of
such Act (42 U.S.C. 602(a)) is amended by inserting
after paragraph (28) the following:
‘‘(29) notwithstanding paragraphs (7) and (8),
provide that, during the 2-year period beginning on
117
the first day any member of a family eligible for
benefits under the State plan sells any good or serv-
ice as part of operating a commercial enterprise with
5 or fewer employees, which is owned in whole or in
part by such family member, all income of such fam-
ily member attributable to the enterprise and all re-
sources in which such family member has a bene-
ficial interest used primarily in the enterprise shall
be disregarded in determining the amount of aid to
which the family is entitled under the State plan;’’.
(2) SSI AND MEDICAID.—
(A) EXCLUSION
FROM
INCOME.—Section
1612(b) of such Act (42 U.S.C. 1382a(b)), as
amended by subsection (a)(2)(A) of this section,
is amended—
(i) by striking ‘‘and’’ at the end of
paragraph (18);
(ii) in paragraph (19), by striking the
period and inserting ‘‘; and’’; and
(iii) by adding at the end the follow-
ing:
‘‘(20) during the 2-year period beginning on the
first day such individual (or such spouse) sells any
good or service as part of operating a commercial
enterprise with 5 or fewer employees, which is owned
118
in whole or in part by such individual (or such
spouse), all income of such individual (or such
spouse) attributable to the enterprise.’’.
(B) EXCLUSION FROM RESOURCES.—Sec-
tion 1613(a) of such Act (42 U.S.C. 1382b(a)),
as amended by subsection (a)(2)(B) of this sec-
tion, is amended—
(i) by striking ‘‘and’’ at the end of
paragraph (10);
(ii) in paragraph (11), by striking the
period and inserting ‘‘; and’’; and
(iii) by inserting after paragraph (11)
the following:
‘‘(12) during the 2-year period beginning on the
first day such individual (or such spouse) sells any
good or service as part of operating a commercial
enterprise with 5 or fewer employees, which is owned
in whole or in part by such individual (or such
spouse), all resources of such individual (or such
spouse) that are used primarily in the enterprise.’’.
SEC. 213. UNEMPLOYMENT COMPENSATION FOR INDIVID-
UALS STARTING MICROENTERPRISES.
(a) STATE LAW REQUIREMENTS.—Subsection (a) of
section 3304 of the Internal Revenue Code of 1986 (relat-
ing to State law requirements) is amended by striking
119
‘‘and’’ at the end of paragraph (17), by redesignating
paragraph (18) as paragraph (19), and by inserting after
paragraph (17) the following new paragraph:
‘‘(18) compensation shall be payable to individ-
uals starting microenterprises as provided in section
3(b) of the Act for microenterprises; and’’.
(b) PAYMENT OF COMPENSATION TO INDIVIDUALS
STARTING MICROENTERPRISES.—
(1) IN
GENERAL.—For purposes of section
3304(a)(18) of the Internal Revenue Code of 1986,
a State law shall provide that—
(A) each individual who is an eligible indi-
vidual with respect to any benefit year shall be
entitled to receive regular or extended unem-
ployment compensation, as the case may be,
without regard to any State or Federal require-
ments relating to availability for work, active
search for work, or refusal to accept suitable
work, and
(B) such individual shall be considered to
be unemployed for purposes of the State and
Federal laws applicable to unemployment com-
pensation, as long as the individual is actively
involved in the ownership and operation of a
microenterprise or the preparation of a business
120
plan for the ownership and operation of a
microenterprise and is receiving guidance or
consultation in starting up or operating a
microenterprise from an experienced entre-
preneur or provider of technical business assist-
ance.
(2) AUTHORIZATION
FOR
USING
UNEMPLOY-
MENT FUNDS TO PROVIDE STARTUP ASSISTANCE.—
Nothing in section 3304(a)(4) or 3306(f) of the In-
ternal Revenue Code of 1986 or section 303(a)(5) of
the Social Security Act shall prevent amounts in a
State unemployment fund from being used to pro-
vide assistance to eligible individuals in starting
microenterprises. The amount of assistance so pro-
vided shall be in the form of a lump sum and shall
be in lieu of the periodic payments of compensation
to which the individual would otherwise have been
entitled and shall not exceed the aggregate amount
of compensation to which the individual would other-
wise have been so entitled.
(3) DEFINITIONS.—For purposes of this sec-
tion—
(A) ELIGIBLE INDIVIDUAL.—The term ‘‘el-
igible individual’’ means, with respect to any
benefit year, an individual who—
121
(i) is eligible to receive regular or ex-
tended compensation under the State law
during such benefit year,
(ii) is starting a microenterprise in
which the individual will have an ownership
interest, and
(iii) submits a request to the State
agency for compensation under this sub-
section.
(B) 
MICROENTERPRISE.—The 
term
‘‘microenterprise’’ means any unincorporated
trade or business with 5 or fewer employees, 1
or more of whom own the enterprise.
(C) OTHER
TERMS.—The terms ‘‘com-
pensation’’, ‘‘extended compensation’’, ‘‘regular
compensation’’, ‘‘benefit year’’, ‘‘State’’, and
‘‘State law’’ have the respective meanings given
to such terms under section 205 of the Federal-
State Extended Unemployment Compensation
Act of 1970.
SEC. 214. TREATMENT OF MICROENTERPRISE LOANS AND
GRANTS BY INSURED DEPOSITORY INSTITU-
TIONS AS COMMUNITY REINVESTMENT.
(a) IN GENERAL.—Section 804 of the Community
Reinvestment Act of 1977 (12 U.S.C. 2903) is amended—
122
(1) by striking ‘‘SEC. 804. In connection with’’
and inserting ‘‘(a) IN GENERAL.—In connection
with’’; and
(2) by adding at the end the following new sub-
sections:
‘‘(b) MICROENTERPRISE LOANS.—
‘‘(1) TREATMENT
OF
LOANS
AND
GRANTS.—
The following amounts shall be treated as an invest-
ment in a regulated financial institution’s commu-
nity for purposes of subsection (a):
‘‘(A) The amount of any loan described in
paragraph (2)(A) made by the regulated finan-
cial institution directly to a microenterprise, if
the loan is made in accordance with the require-
ments of subsection (c).
‘‘(B) The amount of any grant or donation
made by the regulated financial institution to
any microenterprise intermediary to meet oper-
ating costs of the intermediary, including the
costs associated with training, technical assist-
ance, and other support services provided by
the intermediary to microenterprises.
‘‘(C) The amount of any regulated finan-
cial institution’s investment in a revolving fund
established by the institution for loans to
123
microenterprise intermediaries for lending to
microenterprises if—
‘‘(i) the amount of the investment in
the revolving fund is equal to or greater
than the amount which is equal to 0.05
percent of the assets of the institution;
‘‘(ii) the regulated financial institu-
tion—
‘‘(I) makes grants or donations
described in subparagraph (B) to
microenterprise 
intermediaries 
the
total amount of which equals or ex-
ceeds the amount which is equal to 15
percent of the amount required to be
invested in the revolving fund under
clause (i); or
‘‘(II) provides financial services,
including the establishment and main-
tenance of a transaction account, for
a microenterprise (or any individual
who controls the microenterprise) who
receives a microenterprise loan from a
microenterprise intermediary, at pref-
erential or reduced rates which are
at 
least 
as 
favorable 
to 
the
124
microenterprise as the rates offered
for such services to the institution’s
most preferred commercial customers;
and
‘‘(iii) loans from the revolving fund
may be made only to microenterprise
intermediaries who agree to use the pro-
ceeds of the loan to make microenterprise
loans in accordance with the requirements
of subsection (c).
‘‘(2) MICROENTERPRISE LOAN.—For purposes
of this subsection and subsection (c), the term
‘microenterprise loan’—
‘‘(A) means a loan—
‘‘(i) to a commercial enterprise with 5
or fewer employees, 1 or more of whom
own the enterprise;
‘‘(ii) in amounts not less than $100
and not more than $10,000;
‘‘(iii) the interest rate on which is
comparable to the interest rate charged on
secured commercial loans offered by the
regulated financial institution to the insti-
tution’s most preferred commercial cus-
tomers;
125
‘‘(iv) which—
‘‘(I) is not secured by collateral;
or
‘‘(II) is secured by collateral the
value of which, as a percentage of the
amount of the loan, is substantially
less than the percentage generally re-
quired by the institution for commer-
cial loans; and
‘‘(v) the terms of which may permit
the deferral of principal or interest pay-
ments otherwise due under such terms;
and
‘‘(B) includes a loan to a microenterprise
intermediary the proceeds of which will be used
by the intermediary for making loans described
in subparagraph (A).
‘‘(c) CRITERIA FOR MICROENTERPRISE LOANS.—
‘‘(1) IN
GENERAL.—A microenterprise loan
meets the requirements of this subsection if the loan
is made in accordance with the following criteria:
‘‘(A) In considering any loan to a
microenterprise, the lender takes into account—
‘‘(i) the creditworthiness of any per-
son who controls the microenterprise in
126
lieu of the creditworthiness of the enter-
prise;
‘‘(ii) in the case of a microenterprise
which is a startup business, whether the
microenterprise is soundly conceived; and
‘‘(iii) the need of the microenterprise
for expansion capital.
‘‘(B) The lender accepts as collateral for
the loan a security interest in any personal
property of any person who controls the
microenterprise which consists of consumer or
household goods.
‘‘(C) The lender does not require collateral
or a secured interest for more than 50 percent
of the face amount of the loan.
‘‘(D) The loans are made in amounts not
less than $100 and not more than $10,000 to
persons who would not otherwise qualify for a
commercial loan.
‘‘(E) The lender provides technical assist-
ance, training, and counseling in business prac-
tices, such as accounting, marketing, manage-
ment, sales, financial practices, and general
business practices, and closely monitors the
microenterprise during the period the loan is
127
outstanding, including the enterprise’s loan re-
payment performance.
‘‘(2) LENDER
DEFINED.—For purposes of
paragraph (1), the term ‘lender’ means—
‘‘(A) in the case of a microenterprise loan
by a regulated financial institution to a
microenterprise, the regulated financial institu-
tion; and
‘‘(B) in the case of a microenterprise loan
by 
a 
microenterprise 
intermediary 
to 
a
microenterprise, 
the 
microenterprise 
inter-
mediary.’’.
(b) CLERICAL AMENDMENT.—Section 804 of the
Community Reinvestment Act of 1977 (12 U.S.C. 2903)
is amended by inserting before subsection (a) (as so des-
ignated by subsection (a)(1) of this section) the following
new heading:
‘‘SEC. 804. ASSESSMENT OF RECORD OF MEETING COMMU-
NITY CREDIT NEEDS.’’.
SEC. 215. TREATMENT OF MICROENTERPRISE LOANS OF
SAVINGS 
ASSOCIATIONS 
AS 
QUALIFIED
THRIFT INVESTMENTS.
(a) IN GENERAL.—Section 10(m)(4)(C)(ii) of the
Home Owners’ Loan Act (12 U.S.C. 1467a(m)(4)(C)(ii))
128
is amended by adding at the end the following new
subclause:
‘‘(VII) The aggregate amount of
microenterprise loans held by the sav-
ings association.’’.
(b) MICROENTERPRISE LOAN DEFINED.—Section
10(m)(4) of the Home Owners’ Loan Act (12 U.S.C.
1467a(m)(4)) is amended by adding at the end the follow-
ing new subparagraph:
‘‘(D) MICROENTERPRISE LOAN.—For pur-
poses 
of 
this 
paragraph, 
the 
term
‘microenterprise loan’—
‘‘(i) means a loan—
‘‘(I) to a commercial enterprise
with 5 or fewer employees, 1 or more
of whom own the enterprise;
‘‘(II) in amounts not less than
$100 and not more than $10,000; and
‘‘(III) the interest rate on which
is comparable to the interest rate
charged on secured commercial loans
offered by the savings association to
the association’s most preferred com-
mercial customers;
129
‘‘(IV) which is not secured by
collateral or is secured by collateral
the value of which, as a percentage of
the amount of the loan, is substan-
tially less than the percentage gen-
erally required by the institution for
commercial loans; and
‘‘(V) the terms of which may per-
mit the deferral of principal or inter-
est payments otherwise due under
such terms;
‘‘(ii) 
includes 
a 
loan 
to 
a
microenterprise intermediary the proceeds
of which will be used by the intermediary
for making loans described in clause (i);
and
‘‘(iii) does not include—
‘‘(I) 
any 
loan 
to 
a 
micro-
enterprise which does not meet the re-
quirements of paragraph (8); or
‘‘(II) any loan to a micro-
enterprise intermediary which does
not agree to use the proceeds of the
loan to make microenterprise loans in
130
accordance with the requirements of
paragraph (8).’’.
(c) CRITERIA FOR MICROENTERPRISE LOANS.—Sec-
tion 10(m) of the Home Owners’ Loan Act (12 U.S.C.
1467a(m)) is amended by adding at the end the following
new paragraph:
‘‘(8) 
CRITERIA
FOR
MICROENTERPRISE
LOANS.—
‘‘(A) IN
GENERAL.—A microenterprise
loan meets the requirements of this paragraph
only if the savings association makes the
microenterprise loan, or the microenterprise
intermediary which receives a loan from the as-
sociation, agrees to use the proceeds of the loan
to make microenterprise loans in accordance
with the following criteria:
‘‘(i) In considering any loan to a
microenterprise, the lender takes into ac-
count—
‘‘(I) the creditworthiness of any
person 
who 
controls 
the
microenterprise in lieu of the credit-
worthiness of the enterprise;
‘‘(II) 
in 
the 
case 
of 
a
microenterprise which is a startup
131
business, whether the microenterprise
is soundly conceived; and
‘‘(III) 
the 
need 
of 
the
microenterprise for expansion capital.
‘‘(ii) The lender accepts as collateral
for the loan a security interest in any per-
sonal property of any person who controls
the microenterprise which consists of
consumer or household goods.
‘‘(iii) The lender does not require col-
lateral or a secured interest for more than
50 percent of the face amount of the loan.
‘‘(iv) The loans are made in amounts
not less than $100 and not more than
$10,000 to persons who would not other-
wise qualify for a commercial loan.
‘‘(v) The lender provides technical as-
sistance, training, and counseling in busi-
ness practices, such as accounting, market-
ing, management, financial practices, and
general business practices and sales, to the
microenterprise in connection with the loan
and closely monitors the microenterprise,
including the enterprise’s loan repayment
performance.
132
‘‘(B) LENDER DEFINED.—For purposes of
subparagraph (A), the term ‘lender’ means—
‘‘(i) in the case of a microenterprise
loan by a savings association to a
microenterprise, the savings association;
and
‘‘(ii) in the case of a microenterprise
loan by a microenterprise intermediary to
a 
microenterprise, 
the 
microenterprise
intermediary.’’.
SEC. 216. USE OF CDBG ASSISTANCE FOR ADMINISTRATIVE
COSTS 
OF 
ENTITIES 
ASSISTING
MICROENTERPRISES.
Section 105(a)(23) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5305(a)(23)) is
amended by adding at the end the following flush material:
‘‘assistance provided to such entities under this
paragraph may be used for reasonable administra-
tive and operating costs of such entities related to
facilitating economic development through activities
under subparagraphs (A) through (C);’’.
SEC. 217. ESTABLISHMENT OF MICROENTERPRISE DIVI-
SION IN EACH FEDERAL BANKING AGENCY.
(a) IN GENERAL.—Each Federal banking agency (as
defined in section 3(z) of the Federal Deposit Insurance
133
Act) shall establish a division to be known as the
‘‘Microenterprise Technical and Operations Office’’ to pro-
mote microenterprises by offering technical assistance,
training, outreach, and other support to groups and indi-
viduals 
engaged 
in, 
or 
desiring 
to 
establish, 
a
microenterprise or an institution which offers credit or fi-
nancial services to microenterprises.
(b) DUTIES OF MICROENTERPRISE DIVISION.—The
Microenterprise Technical and Operations Office of each
Federal banking agency shall—
(1) facilitate the creation and financing of
microenterprises by—
(A) collecting information relating to
microenterprises, including the ownership char-
acteristics of microenterprises and the perform-
ance of microenterprises by industry;
(B) providing such information without
charge to interested persons; and
(C) generally serving as a clearinghouse
for information relating to microenterprises;
and
(2) monitor and provide assistance to the
microenterprise divisions established pursuant to
section 34 of the Federal Deposit Insurance Act.
134
(c) MICROENTERPRISE DEFINED.—As used in this
section, the term ‘‘microenterprise’’ means any commer-
cial enterprise with 5 or fewer employees, 1 or more of
whom own the enterprise.
SEC. 218. STUDY.
(a) AVAILABILITY
OF CREDIT
FOR SMALL BUSI-
NESSES
WHICH
ARE
LARGER
THAN
MICROENTERPRISES.—The Financial Institutions Exam-
ination Council shall conduct a study before the end of
the 2-year period beginning on the date of the enactment
of this Act, based on the agency’s experience in admin-
istering the microenterprise loan provisions of this Act,
and the amendments made by this Act, on the best means
to make credit available for small businesses which—
(1) do not qualify for microenterprise loans or
need credit in larger amounts than is available
through microenterprise loans; and
(2) need credit in smaller amounts than is gen-
erally available from financial institutions or the
Small Business Administration.
(b) RECOMMENDATIONS AND REPORT.—The Finan-
cial Institutions Examination Council shall submit a re-
port to the Congress before the end of the 2-year period
referred to in subsection (a) containing the findings and
conclusions of the agency in connection with the study
135
conducted pursuant to subsection (a) and such rec-
ommendations for legislative and administrative action as
the agency may determine to be appropriate.
Subtitle C—Equal Surety Bond
Opportunity Act
SEC. 221. SHORT TITLE.
This subtitle may be cited as the ‘‘Equal Surety Bond
Opportunity Act’’.
SEC. 222. EQUAL SURETY BOND OPPORTUNITY REQUIRE-
MENTS.
(a) ACTIVITIES CONSTITUTING DISCRIMINATION.—It
shall be unlawful for any surety to discriminate against
any applicant, with respect to any aspect of a surety bond
transaction—
(1) on the basis of race, color, religion, national
origin, sex, marital status, sexual orientation, dis-
ability, or age (if the applicant has the capacity to
contract);
(2) because the applicant has in good faith ex-
ercised any right under this Act;
(3) because the applicant previously obtained a
bond through an individual or personal surety; or
(4) because the applicant previously obtained a
bond through—
136
(A) any bonding assistance program ex-
pressly authorized by law;
(B) any bonding assistance program ad-
ministered by a nonprofit organization for its
members or an economically disadvantaged
class of persons; or
(C) any special purpose bonding program
offered by a profit-making organization to meet
special needs.
(b) ACTIVITIES NOT CONSTITUTING DISCRIMINA-
TION.—It shall not constitute discrimination for purposes
of this Act for a surety—
(1) to make an inquiry of marital status if such
inquiry is for the purpose of ascertaining the sure-
ty’s rights and remedies applicable to the granting
of a bond and not to discriminate in a determination
of bondability;
(2) to make an inquiry of the applicant’s age if
such inquiry is for the purpose of determining the
amount and probable continuance of bondability; or
(3) to make an inquiry as to where the appli-
cant has previously obtained a bond, in order to de-
termine bonding history, or other pertinent element
of bondability, except that an applicant may not be
137
assigned a negative factor or value because the ap-
plicant previously obtained a bond through—
(A) an individual or personal surety;
(B) a bonding assistance program ex-
pressly authorized by law;
(C) any bonding program administered by
a nonprofit organization for its members or an
economically disadvantaged class of persons; or
(D) any special purpose bonding program
offered by a profit-making organization to meet
special needs.
(c) ADDITIONAL ACTIVITIES NOT CONSTITUTING
DISCRIMINATION.—It is not a violation of this Act for a
surety to refuse to issue a bond pursuant to—
(1) any bonding assistance program authorized
by law for an economically disadvantaged class of
persons;
(2) any bonding assistance program adminis-
tered by a nonprofit organization for its members or
an economically disadvantaged class of persons; or
(3) any special purpose bonding program of-
fered by a profit-making organization to meet special
needs;
if such refusal is required by or made pursuant to such
program.
138
(d) REASONS FOR ADVERSE ACTION; PROCEDURE
APPLICABLE; DEFINITION.—
(1) NOTICE REQUIRED.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), any surety approved under
section 9304 of title 31, United States Code,
shall notify an applicant of the surety’s action
on a completed application before the end of the
10-day period beginning on the date the appli-
cation is filed with the surety.
(B) EXTENSION.—The 10-day period re-
ferred to in subparagraph (A) may be extended
an additional 10 days if the surety has not is-
sued a bond to the applicant during the 1-year
period ending on the date the application is
filed with the surety.
(2) STATEMENT OF REASONS.—
(A) IN GENERAL.—Each applicant against
whom adverse action is taken shall be entitled
to a statement of reasons for such action from
the surety.
(B) 
ACCEPTABLE
FORMS
OF
STATE-
MENT.—A surety satisfies the requirement es-
tablished under subparagraph (A) by—
139
(i) providing a statement of reasons in
writing as a matter of course to applicants
against whom adverse action is taken; or
(ii) giving written notification of ad-
verse action which discloses—
(I) the applicant’s right to a
statement of reasons within 30 days
after receipt by the surety of a re-
quest made within 60 days after such
notification; and
(II) the identity of the person or
office from which such statement may
be obtained.
(C) ORAL STATEMENT PERMITTED.—Such
statement may be given orally if the written no-
tification advises the applicant of the appli-
cant’s right to have the statement of reasons
confirmed in writing on written request.
(3) SPECIFICITY OF REASONS.—A statement of
reasons meets the requirements of this Act only if
it contains specific reasons for the adverse action
taken.
(4) APPLICABILITY IN CASE OF 3D PARTY AP-
PLICATIONS.—In the case of a request to a surety
by a third party to issue a bond directly or indirectly
140
to an applicant, the notification and statement of
reasons required by this section may be made di-
rectly by such surety, or indirectly through the third
party, if the identity of the surety is disclosed to the
applicant.
(5) APPLICABILITY
IN
CASE
OF
SURETIES
WHICH ACCEPT FEW APPLICATIONS.—The require-
ments of paragraph (2), (3), or (4) may be satisfied
by oral statements or notifications in the case of any
surety who did not act on more than 100 applica-
tions during the calendar year in which the adverse
action is taken.
(e) ADVERSE ACTION DEFINED.—For purposes of
this Act, the term ‘‘adverse action’’—
(1) means a denial of a bond, a change in the
terms of an existing bonding arrangement, or a re-
fusal to issue a bond in the amount or on substan-
tially the terms requested; and
(2) does not include any refusal to issue an ad-
ditional bond under an existing bonding arrange-
ment where the applicant is in default, or where
such additional bond would exceed a previously es-
tablished bonding limit.
141
SEC. 223. CIVIL LIABILITY.
(a) DAMAGES.—Any surety who fails to comply with
section 222(a) shall be liable to the aggrieved applicant
for—
(1) any actual damage sustained by such appli-
cant (individually or as a member of a class); and
(2) in the case of any successful action under
this section, the costs of the action, together with
reasonable attorney’s fees as determined by the
court.
(b) EQUITABLE RELIEF.—Upon application by an
aggrieved applicant, a court of competent jurisdiction may
enjoin a surety from violating the requirements of this Act
or grant such other equitable relief as the court deter-
mines to be appropriate to enforce such requirements.
(c) JURISDICTION.—Any action under this section
may be brought in any United States district court, or
in any other court of competent jurisdiction, within 1 year
after the date of the occurrence of the violation involved.
SEC. 224. ADMINISTRATIVE ENFORCEMENT.
(a) IN GENERAL.—A company may not be approved
as a surety by the Secretary of the Treasury under section
9304 of title 31, United States Code, or provide any surety
bond pursuant to such section unless such company main-
tains full compliance with the requirements of this Act.
142
(b) REQUIREMENTS RELATING TO ENFORCEABILITY
OF ACT.—
(1) SIGNED STATEMENT OF COMPLIANCE WITH
APPLICATION.—Section 9305(a) of title 31, United
States Code, is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (1);
(B) by striking the period at the end of
paragraph (2) and inserting ‘‘; and’’; and
(C) by adding at the end the following new
paragraph:
‘‘(3) a statement of compliance with the Equal
Surety Bond Opportunity Act which is signed under
penalty of perjury by the president and the secretary
of the corporation.’’.
(2) COMPLIANCE
AS
A
CONDITION
FOR
AP-
PROVAL OF APPLICATION.—Section 9305(b) of title
31, United States Code, is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (2);
(B) by striking the period at the end of
paragraph (3) and inserting ‘‘; and’’; and
(C) by adding at the end the following new
paragraph:
143
‘‘(4) the corporation is in full compliance with
the Equal Surety Bond Opportunity Act.’’.
(3) SIGNED STATEMENT OF COMPLIANCE WITH
QUARTERLY REPORTS.—Section 9305(c) of title 31,
United States Code, is amended by inserting ‘‘and a
statement of compliance with the Equal Surety
Bond Opportunity Act’’ before the period.
(4) ENFORCEMENT AUTHORITY OF SECRETARY
OF THE TREASURY.—Section 9305(d) of title 31,
United States Code, is amended—
(A) in paragraph (1), by inserting ‘‘or the
provisions of the Equal Surety Bond Oppor-
tunity Act’’ before the semicolon;
(B) by striking ‘‘and’’ at the end of para-
graph (2);
(C) by striking the period at the end of
paragraph (3) and inserting ‘‘; and’’; and
(D) by adding at the end the following new
paragraph:
‘‘(4) may, after the end of the 1-year period be-
ginning on the effective date of any revocation under
paragraph (1) of the authority of a surety corpora-
tion for noncompliance with the Equal Surety Bond
Opportunity Act, reauthorize such corporation to
provide surety bonds under section 9304.’’.
144
(5) REVOCATION FOR FAILURE TO PAY CER-
TAIN
JUDGMENTS.—Section 9305(e) of title 31,
United States Code, is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (1);
(B) by redesignating paragraph (2) as
paragraph (3); and
(C) by inserting after paragraph (1) the
following new paragraph:
‘‘(2) the corporation does not pay a final judg-
ment or order against the corporation for noncompli-
ance with the Equal Surety Bond Opportunity Act
or fails to comply with any order under section 3(c)
of such Act;’’.
(c) TECHNICAL AND CONFORMING AMENDMENT.—
Section 9304(a)(3) of title 31, United States Code, is
amended by inserting ‘‘and section 4(a) of the Equal Sur-
ety Bond Opportunity Act’’ before the period.
(d) REGULATIONS.—
(1) IN GENERAL.—The Secretary of the Treas-
ury shall prescribe such regulations as may be nec-
essary to carry out the purposes of this Act.
(2) INITIAL REGULATIONS.—The initial regula-
tions prescribed pursuant to paragraph (1) shall
take effect at the earliest practicable date after the
145
date of the enactment of this Act and not later than
the end of the 1-year period beginning on such date
of enactment.
SEC. 225. EFFECTIVE DATE.
Sections 222(d) and 224(a) shall take effect on the
earlier of—
(1) the effective date of the initial regulations
prescribed pursuant to section 224(d); or
(2) the end of the 1-year period beginning on
the date of the enactment of this Act.
Subtitle D—Women and Minorities
in 
Science 
and 
Engineering
Work Force Act
SEC. 231. SHORT TITLE.
This subtitle may be cited as the ‘‘Women and Mi-
norities in Science and Engineering Work Force Act’’.
SEC. 232. FINDINGS.
The Congress finds that—
(1) despite a consistently high presence of
women in the professional and total work forces of
the 
United 
States, 
women 
continue 
to 
be
underrepresented in the science and engineering
work forces;
(2) women scientists and engineers have higher
rates of unemployment and underemployment than
146
their male counterparts, although the number of
women receiving degrees in scientific and engineer-
ing disciplines has increased since 1981;
(3) artificial barriers exist in the recruitment,
retention, and advancement of women in the science
and engineering work forces;
(4) academia, industry, and government are in-
creasingly aware of the necessity of and the advan-
tages derived from diverse science and engineering
work forces;
(5) initiatives of the White House Task Force
on Women, Minorities, and the Handicapped in
Science and Technology and of the Federal Coordi-
nating Council on Science, Engineering, and Tech-
nology have been instrumental in raising public
awareness of—
(A) the underrepresentation of women in
the science and engineering work forces; and
(B) the desirability of eliminating artificial
barriers to the recruitment, retention, and ad-
vancement of women in such work forces; and
(6) the establishment of a commission to exam-
ine issues raised by these initiatives would help to—
(A) focus greater attention on the impor-
tance of eliminating artificial barriers to the re-
147
cruitment, retention, and advancement of
women in the science and engineering work
forces and in all employment sectors of the
United States;
(B) promote work force diversity;
(C) sensitize employers to the need to re-
cruit and retain women scientists and engineers
in order to overcome projected shortfalls within
the science and engineering work forces of the
United States during the next 20 years; and
(D) encourage the replication of successful
recruitment and retention programs by univer-
sities, corporations, and Federal agencies hav-
ing difficulties in employing women scientists
and engineers.
SEC. 233. ESTABLISHMENT.
There is established a commission to be known as the
‘‘Commission on the Advancement of Women in the
Science and Engineering Work Forces’’ (hereinafter in
this Act referred to as the ‘‘Commission’’).
SEC. 234. DUTY OF COMMISSION.
The Commission shall conduct a study to—
(1) identify the number of women in the United
States in the science and engineering work forces,
the specific types of occupations in such workforces
148
in which women scientists and engineers are
underrepresented;
(2) examine the preparedness of women to—
(A) pursue careers in the science and engi-
neering work forces; and
(B) advance to positions of greater respon-
sibility within academia, industry, and govern-
ment;
(3) describe the practices and policies of em-
ployers and labor unions relating to the recruitment,
retention, and advancement of women scientists and
engineers;
(4) identify the opportunities for, and artificial
barriers to, the recruitment, retention, and advance-
ment of women scientists and engineers in academia,
industry, and government;
(5) describe the employment situations in which
the recruitment, retention, and advancement of
women scientists and engineers are comparable to
their male counterparts, and identify those situa-
tions in which such comparability does not exist;
(6) compile a synthesis of available research on
practices, policies, and programs that have success-
fully led to the recruitment, retention, and advance-
ment of women in the science and engineering work
149
forces, including training programs, rotational as-
signments, developmental programs, reward pro-
grams, employee benefit structures, and family leave
policies;
(7) examine such other issues and information
relating to the advancement of women in the science
and engineering work forces as determined by the
Commission to be appropriate; and
(8) issue recommendations that government (in-
cluding Congress and appropriate Federal agencies),
academia, and private industry can follow to assist
in the recruitment, retention, and advancement of
women in science and engineering.
SEC. 235. MEMBERSHIP.
(a) NUMBER AND APPOINTMENT.—The Commission
shall be composed of 17 members as follows:
(1) 5 members appointed by the President.
(2) 3 members appointed jointly by the Speaker
of the House of Representatives and the majority
leader of the Senate.
(3) 1 member appointed by the majority leader
of the House of Representatives.
(4) 1 member appointed by the minority leader
of the House of Representatives.
150
(5) 1 member appointed by the majority leader
of the Senate.
(6) 1 member appointed by the minority leader
of the Senate.
(7) 2 Members of the House of Representatives,
appointed jointly by the majority leader and the mi-
nority leader of the House of Representatives.
(8) 2 Senators appointed jointly by the majority
leader and the minority leader of the Senate.
(9) The Director of the Office of Science and
Technology Policy.
(b) ADDITIONAL QUALIFICATIONS.—Initial appoint-
ments shall be made under subsection (a) not later than
180 days after the date of the enactment of this Act. In
making each appointment under subsection (a), the ap-
pointing authority shall consider (among other factors)
whether the individual—
(1) is a member of an organization representing
women and minorities;
(2) holds executive management or senior deci-
sion-making positions in any business entity; and
(3) possesses academic expertise or other recog-
nized abilities relating to employment and employ-
ment discrimination issues.
151
(c) POLITICAL AFFILIATION.—Not more than 1⁄2 of
the members appointed from individuals who are officers
or employees of the United States may be of the same
political party.
(d) CONTINUATION OF MEMBERSHIP.—If a member
was appointed to the Commission because the member was
an officer or employee of any government and later ceases
to be such an officer or employee, that member may con-
tinue as a member of the Commission for not longer than
the 60-day period beginning on the date the member
ceases to be such an officer or employee.
(e) TERMS.—
(1) IN GENERAL.—Each Member shall be ap-
pointed for the life of the Commission.
(2) VACANCIES.—A vacancy in the Commission
shall be filled in the manner in which the original
appointment was made.
(f) BASIC PAY.—
(1) RATES
OF
PAY.—Except as provided in
paragraph (2), each member of the Commission
shall receive compensation at the daily equivalent of
the maximum rate of pay payable under section
5376 of title 5, United States Code, for each day the
member is engaged in the performance of duties for
the Commission, including attendance at meetings
152
and conferences of the Commission, and travel to
conduct the duties of the Commission.
(2) PROHIBITION OF COMPENSATION OF FED-
ERAL
EMPLOYEES.—Members of the Commission
who are full-time officers or employees of the United
States or Members of Congress may not receive ad-
ditional pay, allowances, or benefits by reason of
their service on the Commission.
(g) TRAVEL EXPENSES.—Each member shall receive
travel expenses, including per diem in lieu of subsistence,
in accordance with sections 5702 and 5703 of title 5,
United States Code.
(h) QUORUM.—A majority of the members of the
Commission shall constitute a quorum for the transaction
of business.
(i) CHAIRPERSON.—The Director of the Office of
Science and Technology Policy shall serve as the Chair-
person of the Commission.
(j) MEETINGS.—
(1) MEETINGS PRIOR TO COMPLETION OF RE-
PORT.—The Commission shall meet not fewer than
5 times in connection with and pending the comple-
tion of the reports described in subsections (a) and
(b) of section 228. The Commission shall hold addi-
tional meetings for such purpose if the Chairperson
153
or a majority of the members of the Commission re-
quests the additional meetings in writing.
(2) MEETINGS
AFTER
COMPLETION
OF
RE-
PORT.—The Commission shall meet at least once,
but not more than twice after the completion of the
report described in section 228(b), in connection
with and pending completion of the report required
by section 228(c).
(k) EMPLOYMENT STATUS.—A member of the Com-
mission, who is not otherwise an officer or employee of
the Federal Government, shall not be deemed to be an
employee of the Federal Government except for the pur-
poses of—
(1) the tort claims provisions of chapter 171 of
title 28, United States Code; and
(2) subchapter I of chapter 81 of title 5, United
States Code, relating to compensation for work
injuries.
SEC. 236. DIRECTOR AND STAFF OF COMMISSION; EXPERTS
AND CONSULTANTS.
(a) DIRECTOR.—The Commission shall have a Direc-
tor who shall be appointed by the Chairperson. The Direc-
tor shall be paid at a rate not to exceed the maximum
annual rate of basic pay payable under section 5376 of
title 5, United States Code.
154
(b) STAFF.—Subject to rules prescribed by the Com-
mission, the Chairperson may appoint and fix the pay of
additional personnel as the Chairperson considers appro-
priate.
(c) APPLICABILITY
OF CERTAIN CIVIL SERVICE
LAWS.—The Director and staff of the Commission may
be appointed without regard to the provisions of title 5,
United States Code, governing appointments in the com-
petitive service, and may be paid without regard to the
provisions of chapter 51 and subchapter III of chapter 53
of that title relating to classification and General Schedule
pay rates, except that an individual so appointed may not
receive pay in excess of the maximum annual rate of basic
pay payable under section 5376 of title 5, United States
Code.
(d) EXPERTS AND CONSULTANTS.—The Commission
may procure temporary and intermittent services under
section 3109(b) of title 5, United States Code, at rates
for individuals not to exceed the maximum annual rate
of basic pay payable under section 5376 of title 5, United
States Code.
(e) STAFF OF FEDERAL AGENCIES.—Upon request
of the Commission, the head of any Federal department
or agency may detail, on a reimbursable basis, any of the
155
personnel of that department or agency to the Commission
to assist it in carrying out its duties under this Act.
SEC. 237. POWERS OF COMMISSION.
(a) HEARINGS
AND SESSIONS.—The Commission
may, for the purpose of carrying out this Act, hold hear-
ings, sit and act at times and places, take testimony, and
receive evidence as the Commission considers appropriate.
The Commission may administer oaths or affirmations to
witnesses appearing before it.
(b) POWERS OF MEMBERS AND AGENTS.—Any mem-
ber or agent of the Commission may, if authorized by the
Commission, take any action which the Commission is au-
thorized to take by this section.
(c) OBTAINING OFFICIAL DATA.—The Commission
may secure directly from any department or agency of the
United States information necessary to enable it to carry
out this Act. Upon request of the Chairperson of the Com-
mission, the head of that department or agency shall fur-
nish that information to the Commission.
(d) GIFTS, BEQUESTS, AND DEVISES.—The Commis-
sion may accept, use, and dispose of gifts, bequests, or
devises of services or property, both real and personal, for
the purpose of aiding or facilitating the work of the Com-
mission. Gifts, bequests, or devises of money and proceeds
from sales of other property received as gifts, bequests,
156
or devises shall be deposited in the Treasury and shall be
available for disbursement upon order of the Commission.
(e) MAILS.—The Commission may use the United
States mails in the same manner and under the same con-
ditions as other departments and agencies of the United
States.
(f) ADMINISTRATIVE SUPPORT SERVICES.—Upon the
request of the Commission, the Administrator of General
Services shall provide to the Commission, on a reimburs-
able basis, the administrative support services necessary
for the Commission to carry out its responsibilities under
this Act.
(g) CONTRACT AUTHORITY.—To the extent provided
in advance in appropriations Acts, the Commission may
contract with and compensate government and private
agencies or persons for the purpose of conducting research
or surveys necessary to enable the Commission to carry
out its duties under this Act.
SEC. 238. REPORTS.
(a) STATUS REPORT.—Not later than 1 year after
the date on which the initial appointments under section
235(a) are completed, the Commission shall submit to the
President and the Congress a written report describing the
current activities and findings of the Commission and the
direction of the Commission.
157
(b) RECOMMENDATION REPORT.—Not later than 18
months after the date on which the initial appointments
under section 235(a) are completed, the Commission shall
submit to the President and the Congress a written report
containing—
(1) the findings and conclusions of the Commis-
sion resulting from the study conducted under sec-
tion 234; and
(2) recommendations, including specific pro-
posed legislation and administrative action, based on
the findings and conclusions referred to in para-
graph (1).
(c) FOLLOW-UP REPORT.—After submission of the
report required by subsection (b) and before the termi-
nation of the Commission, the Commission shall submit
to the President and to the Congress a written report—
(1) identifying which of the recommendations
included in such report have been implemented; and
(2) containing any additional information the
Commission considers to be appropriate.
SEC. 239. TERMINATION.
The Commission shall terminate 1 year after submit-
ting the report required by section 238(b).
158
SEC. 239A. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated for fiscal
years 1995, 1996, and 1997 such sums as may be nec-
essary to carry out this Act.
Subtitle E—Job Training Self-
Sufficiency Act
SEC. 241. SHORT TITLE.
This subtitle may be cited as the ‘‘Self-Sufficiency
Standard Act’’.
SEC. 242. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds that—
(1) the principle objective of programs under
part A of title II of the Job Training Partnership
Act (29 U.S.C. 1601 et seq.) is to move economically
disadvantaged adults into permanent, unsubsidized
employment that pays a wage that enables such
adults to achieve long-term economic self-sufficiency
for themselves and their dependents;
(2) current measures of success of such pro-
grams do not accurately assess the degree to which
participants achieve long-term economic self-suffi-
ciency;
(3) in order to ensure that such programs re-
sult in long-term economic self-sufficiency for par-
ticipants, performance standards must focus both on
the wage and benefits a participant receives relative
159
to the participant’s family size and needs, and on
the duration and stability of the participant’s em-
ployment; and
(4) the wage and benefits needed to achieve
long-term economic self-sufficiency will vary by fam-
ily size and local market conditions governing prices
of essential goods and services.
(b) PURPOSES.—The purposes of this Act are—
(1) to provide for the establishment and use of
local economic self-sufficiency standards tables to ac-
curately measure the effectiveness of adult training
programs carried out under part A of title II of the
Job Training Partnership Act (29 U.S.C. 1601 et
seq.); and
(2) to provide grants to States to develop dem-
onstration and exemplary programs to increase the
number of participants under such programs who
are trained and placed in jobs that yield long-term
economic self-sufficiency using the local economic
self-sufficiency standards tables.
SEC. 243. DEFINITION OF ECONOMIC SELF-SUFFICIENCY.
Section 4 of the Job Training Partnership Act (29
U.S.C. 1503) is amended by adding at the end the follow-
ing new paragraph:
160
‘‘(41) The term ‘economic self-sufficiency’
means the ability of an individual to meet the follow-
ing basic needs for the individual and such individ-
ual’s family:
‘‘(A) Housing.
‘‘(B) Child care.
‘‘(C) Adult dependent care.
‘‘(D) Food.
‘‘(E) Transportation.
‘‘(F) Health care.
‘‘(G) Work-related expenses.’’.
SEC. 244. ESTABLISHMENT OF ECONOMIC SELF-SUFFI-
CIENCY STANDARDS FOR ADULT TRAINING
PROGRAMS.
(a) IN GENERAL.—Section 106(b) of such Act (29
U.S.C. 1516(b)) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(9) ECONOMIC SELF-SUFFICIENCY STANDARDS
FOR ADULT PROGRAMS.—
‘‘(A) FORMULA DEVELOPED BY THE SEC-
RETARY.—(i)(I) Not later than 6 months after
the date of the enactment of this paragraph,
the Secretary shall develop and publish in the
Federal Register a proposed formula which
measures the minimum amount of wages and
161
employment benefits that a participant enrolled
in a program under part A of title II should re-
ceive after termination from such program to
ensure the long-term economic self-sufficiency
of such participant.
‘‘(II) The Secretary shall provide for public
review and comment of the proposed formula
described in subclause (I) within the 60-day pe-
riod beginning on the date such formula is pub-
lished in the Federal Register. Not later than
4 months after the end of such 60-day period,
the Secretary shall develop and publish in the
Federal Register a final formula.
‘‘(ii) The Secretary shall base the formula
described in clause (i) on appropriate factors,
which shall include—
‘‘(I) the participant’s family size and
composition, including the number and age
of dependent adults and children;
‘‘(II) 100 percent of the average hous-
ing costs, which shall be based on the fair
market rental in effect for the market area
in which the participant resides, as estab-
lished by the Secretary of Housing and
Urban Development pursuant to section
162
8(c) of the United States Housing Act of
1937;
‘‘(III) 100 percent of the average
child care costs (differentiated by the age
of each child), which may be based on the
actual cost of such care established under
section 402(g)(1)(C)(i)(I) the Social Secu-
rity Act or the applicable local market rate
established under clause (ii) of such sec-
tion;
‘‘(IV) 100 percent of the average
adult dependent care costs, which may be
based on local surveys or the local average
of such costs;
‘‘(V) 100 percent of the average
health care costs, which shall include costs
incurred for full family health care cov-
erage (including premiums, deductibles,
and co-payments), and which may be based
on local surveys or the local average of
such costs;
‘‘(VI) 100 percent of the average
transportation costs, which may be based
on local surveys or the local average of
such costs;
163
‘‘(VII) 100 percent of the food costs,
which shall be equal to 1⁄3 of the official
poverty line (as defined by the Office of
Management and Budget, and revised an-
nually in accordance with section 673(2) of
the Omnibus Budget Reconciliation Act of
1981 (42 U.S.C. 9902(2)); and
‘‘(VIII) 100 percent of the average
work-related costs, which shall include the
cost of uniforms, tools, and other appro-
priate work-related costs.
‘‘(iii) The Secretary shall also designate,
from among the needs identified through the
needs assessment conducted under this Act,
those needs which shall be used by a service de-
livery area to develop the summary needs table
under section 104(b)(14)(B).
‘‘(B) LOCAL ECONOMIC SELF-SUFFICIENCY
STANDARDS TABLES DEVELOPED BY SERVICE
DELIVERY
AREAS.—(i) Not later than 12
months after the date on which the Secretary
publishes the final formula in the Federal Reg-
ister under subparagraph (A)(i)(II), each serv-
ice delivery area shall, in accordance with such
formula, develop and submit to the Governor a
164
local economic self-sufficiency standards table
which measures the minimum amount of wages
and employment benefits that a participant en-
rolled in a program under part A of title II in
such area should receive after termination from
such program to ensure the long-term economic
self-sufficiency of such participant.
‘‘(ii) The Secretary shall provide technical
assistance to States and service delivery areas
for the purpose of assisting such service deliv-
ery areas to develop the local economic self-suf-
ficiency standards tables under clause (i).
‘‘(C) APPROVAL
AND
DISAPPROVAL
OF
TABLE.—(i) Not later than 30 days after the
date on which the Governor receives a local eco-
nomic self-sufficiency standards table submitted
by a service delivery area under subparagraph
(B)(i), the Governor shall review such table and
approve or disapprove such table in accordance
with this subparagraph.
‘‘(ii) The Governor shall approve each local
economic self-sufficiency standards table only
if—
‘‘(I) such table accounts for the full
range of variations of family size and com-
165
position described in subclause (I) of sub-
paragraph (A)(ii);
‘‘(II) such table accounts for 100 per-
cent of each of the costs described in
subclauses (II) through (VIII) of subpara-
graph (A)(ii);
‘‘(III) the methodology used to deter-
mine such costs accurately represent such
costs; and
‘‘(IV) such table complies with all
other provisions of the formula developed
by the Secretary under subparagraph (A).
‘‘(iii) If the Governor determines that the
table does not meet the requirements of clause
(ii) or is otherwise incomplete or unsatisfactory,
the Governor shall, before the end of the period
referred to in clause (i)—
‘‘(I) notify the service delivery area of
the reasons for the failure to approve the
table;
‘‘(II) notify the service delivery area
that the table may be resubmitted during
the period referred to in subclause (III);
and
166
‘‘(III) permit the service delivery area
to resubmit a corrected or amended table
during the 30-day period beginning on no-
tification under this clause.
‘‘(iv) The Governor shall review and ap-
prove or disapprove any table resubmitted
under clause (iii) beginning before the expira-
tion of the 30-day period beginning upon such
resubmission.
‘‘(D) ANNUAL UPDATES.—Each service de-
livery area shall update the local economic self-
sufficiency standards table developed by such
area on an annual basis and shall submit to the
Governor a description of the updated version
of such table.’’.
(b) CONFORMING AMENDMENT.—Paragraph (3) of
section 106(b) of such Act (29 U.S.C. 1516(b)(3)) is
amended by striking ‘‘The Secretary’’ and inserting ‘‘In
addition to the standards under local economic self-suffi-
ciency standards tables developed pursuant to paragraph
(9), the Secretary’’.
167
SEC. 245. PROHIBITION OF INCENTIVE GRANTS TO SERV-
ICE DELIVERY AREAS THAT DO NOT HAVE IN
EFFECT AN APPROVED LOCAL ECONOMIC
SELF-SUFFICIENCY STANDARDS TABLE.
(a) IN GENERAL.—Paragraph (7) of section 106(b)
of such Act (29 U.S.C. 1516(b)(7)) is amended—
(1) by striking ‘‘From funds available’’ and in-
serting ‘‘(A) Subject to subparagraph (B), from
funds available’’;
(2) by redesignating clauses (i) and (ii) of sub-
paragraph (D) as subclauses (I) and (II), respec-
tively;
(3) by redesignating subparagraphs (A) through
(E) of such paragraph as clauses (i) through (v), re-
spectively; and
(4) by adding at the end the following new sub-
paragraph:
‘‘(B) A Governor shall not award incentive
grants for programs under part A of title II to serv-
ice delivery areas that do not have in effect a local
economic self-sufficiency standards table approved
under paragraph (9)(C).
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect 2 years after the date of
the enactment of this Act.
168
SEC. 246. INCLUSION OF LOCAL ECONOMIC SELF-SUFFI-
CIENCY STANDARDS TABLE AND RELATED
REPORTS IN JOB TRAINING PLAN.
(a) LOCAL ECONOMIC SELF-SUFFICIENCY STAND-
ARDS TABLE.—Subparagraph (B) of section 104(b)(5) of
such Act (29 U.S.C. 1514(b)(5)(B)) is amended by insert-
ing ‘‘, including the local economic self-sufficiency stand-
ards table developed pursuant to subsection (b)(9) of such
section’’ after ‘‘section 106’’.
(b) ANNUAL REPORTS.—Subsection (b) of section
104 of such Act (29 U.S.C. 1514(b)) is amended—
(1) in paragraph (12), by striking ‘‘; and’’ and
inserting a semicolon;
(2) in paragraph (13), by striking the period at
the end of such paragraph and inserting ‘‘; and’’;
and
(3) by adding at the end the following new
paragraph:
‘‘(14) procedures for the preparation and sub-
mission of an annual report to the Governor, which
shall include—
‘‘(A) with respect to each participant who
has completed training under a program carried
out under part A of title II in the service deliv-
ery area, information relating to—
169
‘‘(i) the type and amount of services
provided to such participant under the pro-
gram;
‘‘(ii) the subsequent employment of
the participant, where appropriate, includ-
ing the amount of wages and employment
benefits received by the participant under
such employment; and
‘‘(iii) the degree of long-term eco-
nomic self-sufficiency which the participant
has achieved as a result of the training re-
ceived by the participant under the pro-
gram based upon the local economic self-
sufficiency standards table; and
‘‘(B) a summary needs table which—
‘‘(i) ranks and places participants into
at least 4 categories of equal size based
upon the needs designated by the Sec-
retary under section 106(b)(9)(A)(iii);
‘‘(ii) includes a description of the level
of measurements used to place the partici-
pants into such categories; and
‘‘(iii) includes a description of the de-
gree to which participants in each category
achieved long-term economic self-suffi-
170
ciency after termination from a program
under part A of title II.’’.
SEC. 247. INCLUSION OF LOCAL ECONOMIC SELF-SUFFI-
CIENCY STANDARDS TABLES AND RELATED
REPORTS IN GOVERNOR’S COORDINATION
AND SPECIAL SERVICES PLAN.
Subsection (b) of section 121 of such Act (29 U.S.C.
1531(b)) is amended—
(1) by redesignating paragraphs (6) and (7) as
paragraphs (7) and (8), respectively; and
(2) by inserting after paragraph (5) the follow-
ing new paragraph:
‘‘(6) The plan shall include—
‘‘(A) the local economic self-sufficiency
standards table developed by each service deliv-
ery areas pursuant to section 106(b)(9);
‘‘(B) a compilation of the reports received
by the Governor under section 104(b)(14); and
‘‘(C) a description of goals and objectives
to assist participants enrolled in programs
under part A of title II achieve long-term eco-
nomic self-sufficiency.’’.
171
SEC. 248. DEMONSTRATION PROGRAMS TO IMPLEMENT
LOCAL 
ECONOMIC 
SELF-SUFFICIENCY
STANDARDS TABLES.
(a) IN GENERAL.—Part D of title IV of such Act (29
U.S.C. 1737 et seq.) is amended by adding at the end
the following new section:
‘‘SEC. 457. ECONOMIC SELF-SUFFICIENCY DEMONSTRATION
GRANT PROGRAM.
‘‘(a) AUTHORIZATION.—
‘‘(1) IN
GENERAL.—From funds available
under this part for the fiscal years 1996, 1997, and
1998, the Secretary shall use $1,500,000 in each
such fiscal year to provide grants to States to estab-
lish and carry out demonstration and exemplary pro-
grams to increase the number of participants in pro-
grams under part A of title II who are trained and
placed in jobs that yield long-term economic self-suf-
ficiency in accordance with the local economic self-
sufficiency standards tables under section 106(b)(9).
‘‘(2) LIMITATION.—The Secretary may provide
no more than 6 grants in each fiscal year under
paragraph (1).
‘‘(b) APPLICATION.—The Secretary may provide a
grant to a State under subsection (a) only if such State
submits to the Secretary an application which contains
such information as the Secretary may reasonably require.
172
‘‘(c) USE OF FUNDS.—
‘‘(1) IN GENERAL.—A State shall use amounts
received from a grant under subsection (a) to award
grants to service delivery areas and eligible service
providers described in paragraph (3) to develop and
test strategies to train, place, and retain participants
in jobs that yield long-term economic self-sufficiency
in accordance with the local economic self-sufficiency
standards tables under section 106(b)(9).
‘‘(2) APPROPRIATE
LEVEL
OF
SERVICES.—In
providing grants under paragraph (1), a State shall
ensure that each service delivery area or service pro-
vider provides for an appropriate level of services, in-
cluding supportive services, to participants using the
relevant local economic self-sufficiency standards ta-
bles developed by the service delivery area.
‘‘(3) ELIGIBLE SERVICE PROVIDERS.—Eligible
service providers described in this paragraph are
community-based organizations, educational institu-
tions, or any other service providers in the State
that have a demonstrated success in—
‘‘(A) providing occupational skills training
to participants for high-wage jobs; and
173
‘‘(B) ensuring that participants receive
supportive services in order to successfully com-
plete such training.
‘‘(d) ADMINISTRATIVE
AND RELATED COSTS.—In
any fiscal year in which a State receives amounts from
a grant under subsection (a), the State may retain an
amount not to exceed 10 percent of the grant amount to—
‘‘(1) pay the administrative costs of programs
established and carried out under subsection (a);
‘‘(2) facilitate the coordination of statewide ap-
proaches to training and placing participants in jobs
yielding long-term economic self-sufficiency; and
‘‘(3) provide technical assistance to service de-
livery areas and service providers.
‘‘(e) SELECTION.—In providing grants to States
under subsection (a), the Secretary shall consider—
‘‘(1) the extent to which the State has dem-
onstrated that the coordination of services provided
under this Act with services provided by agencies
and organizations addressing the basic needs of low-
income individuals, including housing, food, trans-
portation, dependent care, and health care, has re-
sulted in the prompt and efficient delivery of services
to participants under this Act;
174
‘‘(2) the extent to which the State has dem-
onstrated its capability to ensure the provision of all
needed supportive services to participants in any job
training program carried out in the State for the du-
ration of such participants’ enrollment;
‘‘(3) the extent of private sector involvement in
the development and implementation of training pro-
grams that increase opportunities for participants to
achieve long-term economic self-sufficiency under
this Act in the State;
‘‘(4) the extent to which the initiatives proposed
by a State in its application supplement or build
upon existing efforts in the State to train and place
individuals in jobs that increase opportunities for
participants to achieve long-term economic self-suffi-
ciency;
‘‘(5) whether the proposed amount of the grant
to be provided under subsection (a) is sufficient to
accomplish measurable goals;
‘‘(6) the extent to which the State is prepared
to disseminate information on its demonstration
training programs relating to training, placement,
and other services; and
175
‘‘(7) the extent to which the State is prepared
to produce materials that allow for replication of
such State’s demonstration training programs.
‘‘(f) EVALUATION.—The Secretary shall provide for
an evaluation of the programs established and carried out
under subsection (a), including evaluation of the effective-
ness of such programs in—
‘‘(1) assisting participants with varying needs
in achieving long-term economic self-sufficiency
through training, placement, and other services;
‘‘(2) effectively implementing the use of local
economic self-sufficiency standards tables to increase
the number of participants achieving long-term eco-
nomic self-sufficiency; and
‘‘(3) developing and replicating approaches to
assist participants with varying needs in achieving
long-term economic self-sufficiency through training,
placement, and other services.’’.
(b) CONFORMING AMENDMENT.—The table of con-
tents of such Act is amended by inserting after the item
relating to section 456 the following new item:
‘‘Sec. 457. Economic self-sufficiency demonstration grant program.’’.
SEC. 249. REPORT AND RECOMMENDATIONS.
(a) REPORT.—Not later than 2 years after the date
on which the Secretary provides the 1st grant to a State
under section 457(a)(1) of the Job Training Partnership
176
Act and biennially thereafter, the Secretary of Labor shall
submit to the Congress a report on—
(1) the extent to which States, service delivery
areas, and other service providers have succeeded in
training, placing, and retaining participants enrolled
in programs under part A of title II of such Act in
jobs yielding long-term economic self-sufficiency; and
(2) the effectiveness of the demonstration pro-
grams established under section 457 of such Act in
developing and replicating approaches to train,
place, and retain participants in such jobs, including
a summary of activities performed by grant recipi-
ents under the demonstration programs authorized
under such section.
(b) RECOMMENDATIONS.—The report described in
subsection (a) shall include recommendations on—
(1) the need to continue, expand, or modify the
demonstration programs established under section
457 of the Job Training Partnership Act;
(2) legislative and administrative changes nec-
essary to increase opportunities for participants to
achieve long-term economic self-sufficiency; and
(3) legislative and administrative action nec-
essary to institutionalize the use of local economic
self-sufficiency standards tables as the principal
177
measure of performance for programs carried out
under part A of title II of the Job Training Partner-
ship Act (29 U.S.C. 1601 et seq.) such that—
(A) the basic measure of performance for
such programs shall be the achievement of long-
term economic self-sufficiency resulting from
participation in the program;
(B) placements are evaluated according to
whether the wages and employment benefits
meet the participant’s particular long-term eco-
nomic self-sufficiency needs;
(C) both wages and the cash value of em-
ployment benefits are used to determine wheth-
er a participant has achieved the self-sufficiency
standard for their particular family size and
composition;
(D) in order to ensure that participants
with varying needs are served equitably, the
placements shall be equitably distributed among
the categories contained in the summary needs
table established by the service delivery area in
the job training plan prepared under section
104(b)(14)(B) of the Job Training Partnership
Act; and
178
(E) 
incentive 
grants 
under 
section
106(b)(7) of such Act (29 U.S.C. 1516(b)(7))
are provided to service delivery areas based pri-
marily on the extent to which such areas exceed
the standards under the local economic self-suf-
ficiency standards table for such areas.
TITLE III—WORK AND FAMILY
Subtitle A—Child Care Public-
Private Partnership Act
SEC. 301. SHORT TITLE.
This title may be cited as the ‘‘Child Care Public-
Private Partnership Act of 1993’’.
SEC. 
302. 
ESTABLISHMENT 
OF 
BUSINESS 
INCENTIVE
GRANT PROGRAM.
The Secretary of Health and Human Services shall
establish a program to make grants to—
(1) businesses and consortia—
(A) to pay start-up costs incurred to pro-
vide child care services; or
(B) to provide additional child care serv-
ices;
needed by the employees of such businesses; and
(2) nonprofit business organizations to provide
technical information and assistance to enable busi-
nesses to provide child care services.
179
SEC. 303. ELIGIBILITY TO RECEIVE GRANTS.
To be eligible to receive a grant under section 302,
a business, nonprofit business organization, or consortium
shall submit to the Secretary an application in accordance
with section 304.
SEC. 304. APPLICATION.
The application required by section 303 shall be sub-
mitted by a business, nonprofit business organization, or
consortium at such time, in such form, and containing
such information as the Secretary may require by rule,
except that such application shall contain—
(1) an assurance that the applicant shall ex-
pend, for the purpose for which such grant is made,
an amount not less than 200 percent of the amount
of such grant;
(2) an assurance that such applicant will ex-
pend such grant for the use specified in paragraph
(1) or (2) of section 302, as the case may be;
(3) an assurance that such applicant will em-
ploy strategies to ensure that child care services pro-
vided by such applicant, or provided with the tech-
nical information and assistance made available by
such applicant, are provided at affordable rates, and
on an equitable basis, to low- and moderate-income
employees;
(4) an assurance that such applicant—
180
(A) in the case of a business or consor-
tium, will comply with all State and local licens-
ing requirements applicable to such business or
consortium concerning the provision of child
care services; or
(B) in the case of a nonprofit business or-
ganization, will employ procedures to ensure
that technical information and assistance pro-
vided under this Act by such business organiza-
tion will be provided only to businesses that
provide child care services in compliance with
all State and local licensing requirements appli-
cable to child care providers in such State; and
(5) in the case of a business or consortium, an
assurance that if the employees of such applicant do
not require all the child care services for which such
grant and the funds required by paragraph (1) are
to be expended by such applicant, the excess of such
child care services shall be made available to families
in the community in which such applicant is located.
SEC. 305. SELECTION OF GRANTEES.
For purposes of selecting applicants to receive grants
under this Act, the Secretary shall give priority to busi-
nesses that have fewer than 100 full-time employees. To
the extent practicable, the Secretary shall—
181
(1) make grants equitably under this Act to ap-
plicants located in all geographical regions of the
United States; and
(2) give priority to applicants for grants under
section 302(1).
SEC. 306. DEFINITIONS.
As used in the Act:
(1) BUSINESS.—The term ‘‘business’’ means a
person engaged in commerce whose primary activity
is not providing child care services.
(2) CHILD CARE SERVICES.—The term ‘‘child
care services’’ means care for a child that is—
(A) provided on the site at which a parent
of such child is employed or at a site nearby in
the community; and
(B) subsidized at least in part by the busi-
ness that employs such parent.
(3) CONSORTIUM.—The term ‘‘consortium’’
means 2 or more businesses acting jointly. A consor-
tium may also include a nonprofit private organiza-
tion.
(4) SECRETARY.—The term ‘Secretary’ means
the Secretary of Health and Human Services.
182
SEC. 307. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out
this Act $25,000,000 for each of the fiscal years 1994,
1995, 1996, and 1997.
Subtitle B—After-School Child
Care
SEC. 311. SHORT TITLE.
This subtitle may be cited as the ‘‘After-School Child
Care Act of 1993’’.
SEC. 312. FINDINGS.
The Congress makes the following findings:
(1) Major changes have occurred in America’s
family and work life in the past two decades as
women with children have entered the work force in
large numbers.
(2) Between 1970 and 1988, the proportion of
all women with children younger than 18 who were
in the labor force rose from 40 to 65 percent.
(3) For many working parents, especially single
parents, finding quality and affordable afterschool
services to provide supervision for their children
until the end of the work day is a major concern and
challenge.
(4) Because of the cost or unavailability of serv-
ices, afterschool care for many has been an insur-
183
mountable problem which has resulted in children
being left along afterschool to fend for themselves.
(5) More than 2,000,000 children between the
ages of 5 through 13 are left alone to care for them-
selves after school.
(6) Because of the lack of adult supervision,
such children are exposed to higher risks of physical
injury at the hands of others or themselves.
(7) Recent studies have also found that children
unsupervised for 1 or more hours per school day are
at greater risk of substance abuse.
(8) The community as a whole also suffers from
the limited availability of quality and affordable
afterschool care for children.
SEC. 313. PURPOSE.
The purpose of this Act is to provide grants to assist
State educational agencies and local educational agencies
in establishing State and district-wide afterschool care
programs that—
(1) provide affordable and quality afterschool
supervision for students enrolled in kindergarten
through grade 6 who could be without supervision of
an adult after the end of the instructional school day
as a result of parental employment;
184
(2) reinforce and expand learning experiences of
children by providing a spectrum of opportunities
and activities after regular school hours, including
homework help, reading, tutorial assistance, enrich-
ment in areas such as art, crafts and expressive
arts, and access to school libraries and classrooms;
(3) improve the physical development of chil-
dren by providing supervised recreational sports, and
fitness activities;
(4) increase the utilization of school facilities;
and
(5) enhance the relationship between home and
school by collaboratively meeting the needs of chil-
dren.
SEC. 314. PROGRAM AUTHORIZED.
(a) GENERAL AUTHORITY.—The Secretary of Edu-
cation is authorized to make grants to State and local edu-
cational agencies which have applications approved under
section 315 to pay the Federal share of the cost of pro-
grams designed to provide affordable and quality after-
school care for students enrolled in kindergarten through
grade 6.
(b) USES OF FUNDS.—State and local educational
agencies that receive grants under this Act may use the
funds to plan, develop, implement, administer, or expand
185
afterschool care programs through cooperative agree-
ments, contracts for services, or direct employment of
staff, which—
(1) provides stimulating afterschool activities
such as homework assistance, tutoring, reading,
physical activity, arts and crafts, and expressive
arts;
(2) utilizes existing public school facilities, in-
cluding classrooms, libraries, computers, and other
school equipment; and
(3) utilizes school teachers, counselors, adminis-
trators, other faculty and parents to provide after-
school supervision.
(c) ELIGIBLE STUDENTS.—Participation in such an
afterschool program shall be limited to public elementary
school students enrolled in kindergarten through grade 6
who—
(1) come from households headed by a single
working parent or guardian, or two working parents
or guardians;
(2) are children of persons who work in the
afterschool program;
(3) are children of parents who attend school or
job training for career development; or
186
(4) are recommended by the school on the basis
of educational need, subject to available resources.
SEC. 315. APPLICATION.
(a) APPLICATION.—A State or local educational
agency that desires to receive a grant under this Act shall
submit an application to the Secretary of Education at
such time, in such manner, and accompanied by such addi-
tional information as the Secretary may reasonably re-
quire.
(b) REQUIREMENTS.—Each such application shall
contain a plan to develop and implement a State or dis-
trict-wide afterschool program which includes—
(1) policies and procedures for the employment
of adequate staff to administer the afterschool pro-
gram;
(2) if applicable, procedures for contracting
with private entities to provide afterschool services;
(3) policies and procedures for establishing af-
fordable fees to be paid by parents and guardians to
help pay for the cost of the afterschool care;
(4) policies to ensure that students who qualify
for the school free or reduced-price lunch program
are exempt from program fees;
(5) policies and procedures to establish under
what circumstances students may be precluded from
187
continued participation in the program, including
failure to pay the program fee, chronic late pick-ups,
or conduct which jeopardizes the safety or welfare of
the program’s staff or participants;
(6) a plan to ensure optimum use of the edu-
cational facilities and resource available at sites that
are not in conflict with the goals and objectives of
the State or local educational agency’s regular edu-
cation and afterschool instructional program;
(7) a plan to ensure adequate coordination with
the public school system on such matters as shared
use of facilities, materials and equipment, and cur-
riculum;
(8) a plan to ensure the development of a
meaningful curriculum consistent with objectives of
the State or local educational agency’s regular in-
structional program; and
(9) a plan to ensure parental and community
participation in the development of an afterschool
program, including input from existing public and
private providers of afterschool care.
(c) SPECIAL CONSIDERATION.—In making an award
under this Act, the Secretary shall give special consider-
ation to—
188
(1) the geographic distribution of awards, in-
cluding urban and rural districts; and
(2) districts with high proportions of at-risk
students.
SEC. 316. LIMITATIONS.
(a) FEDERAL SHARE.—Federal funds may be used
for not more than 75 percent of the costs of the project
with the remaining funds coming from non-Federal
sources, including program fees paid by parents and in-
kind services.
(b) LIMITATION ON PLANNING COSTS.—Not more
than 1⁄3 of project funds may be used for planning an
afterschool program.
(c) IMPLEMENTATION OF NON-FEDERAL FUNDS.—
All Federal funds must be used to supplement and not
supplant the funds that would otherwise be available from
non-Federal sources for this project.
SEC. 317. REPORTS.
A State or local educational agency that receives a
grant under this Act shall submit to the Secretary a report
by March of each year that—
(1) describes the progress in meeting the pur-
pose of this Act;
(2) includes information on the enrollment and
costs of the afterschool program;
189
(3) describes the impact of the program on—
(A) meeting the need of afterschool care in
the State or district;
(B) other existing public and private after-
school care programs; and
(C) functioning of the regular school pro-
gram; and
(4) any other information that may be pre-
scribed by the Secretary of Education.
SEC. 318. AUTHORIZATION OF FUNDS.
There are authorized to be appropriated to carry out
the provisions of this Act $250,000,000 for the fiscal year
1995 and such sums as may be necessary for each of the
fiscal years, 1996, 1997, 1998, and 1999.
Subtitle C—Dependent Care Tax
Credit Refundability
SEC. 321. DEPENDENT CARE TAX CREDIT.
(a) DEPENDENT CARE SERVICES.—Subpart C of
part IV of subchapter A of chapter 1 of the Internal Reve-
nue Code of 1986 (relating to refundable credits) is
amended by redesignating section 35 as section 36 and
by inserting after section 34 the following new section:
‘‘SEC. 35. DEPENDENT CARE SERVICES.
‘‘(a) ALLOWANCE OF CREDIT.—
190
‘‘(1) IN GENERAL.—In the case of an individual
who maintains a household which includes as a
member 1 or more qualifying individuals, there shall
be allowed as a credit against the tax imposed by
this subtitle for the taxable year an amount equal to
the applicable percentage of the sum of—
‘‘(A) the employment-related expenses paid
by such individual during the taxable year, plus
‘‘(B) the respite care expenses paid by
such individual during the taxable year.
‘‘(2) APPLICABLE PERCENTAGE DEFINED.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the term ‘applicable percentage’
means 50 percent reduced (but not below 20
percent) by 1 percentage point for each full
$1,000 amount by which the taxpayer’s ad-
justed gross income for the taxable year exceeds
$15,000.
‘‘(B) COST-OF-LIVING ADJUSTMENT.—
‘‘(i) IN GENERAL.—In the case of a
taxable year beginning in a calendar year
after 1994, subparagraph (A) shall be ap-
plied by increasing the $15,000 amount
contained therein by the cost-of-living ad-
justment (as defined in section 1(f)(3)) for
191
such calendar year determined by sub-
stituting ‘‘1993’’ for ‘‘1989’’ in subpara-
graph (B) of section 1(f)(3).
‘‘(ii) ROUNDING.—If any increase de-
termined under clause (i) is not a multiple
of $10, such increase shall be rounded to
the nearest multiple of $10 (or if such in-
crease is a multiple of $15, such increase
shall be increased to the next highest mul-
tiple of $10).
‘‘(b) EMPLOYMENT-RELATED EXPENSES.—For pur-
poses of this section—
‘‘(1) 
DETERMINATION
OF
ELIGIBLE
EX-
PENSES.—
‘‘(A) IN
GENERAL.—The term ‘employ-
ment-related expenses’ means amounts paid for
the following expenses, but only if such ex-
penses are incurred to enable the taxpayer to be
gainfully employed for any period for which
there are 1 or more qualifying individuals with
respect to the taxpayer:
‘‘(i) expenses for household services,
and
‘‘(ii) expenses for the care of a quali-
fying individual.
192
Such term shall not include any amount paid
for services outside the taxpayer’s household at
a camp where the qualifying individual stays
overnight and shall not include any respite care
expense taken into account under subsection
(a).
‘‘(B) 
EXCEPTION.—Employment-related
expenses described in subparagraph (A) which
are incurred for services outside the taxpayer’s
household shall be taken into account only if in-
curred for the care of—
‘‘(i) a qualifying individual described
in subsection (d)(1), or
‘‘(ii) a qualifying individual (not de-
scribed in subsection (d)(1)) who regularly
spends at least 8 hours each day in the
taxpayer’s household.
‘‘(C) DEPENDENT
CARE
CENTERS.—Em-
ployment-related expenses described in subpara-
graph (A) which are incurred for services pro-
vided outside the taxpayer’s household by a de-
pendent care center (as defined in subpara-
graph (D)) shall be taken into account only if—
193
‘‘(i) such center complies with all ap-
plicable laws and regulations of a State or
unit of local government, and
‘‘(ii) the requirements of subpara-
graph (B) are met.
‘‘(D) DEPENDENT
CARE
CENTER
DE-
FINED.—For purposes of this paragraph, the
term ‘dependent care center’ means any facility
which—
‘‘(i) provides care for more than 6 in-
dividuals (other than individuals who re-
side at the facility), and
‘‘(ii) receives a fee, payment, or grant
for providing services for any of the indi-
viduals (regardless of whether such facility
is operated for profit).
‘‘(2) 
DOLLAR
LIMIT
ON
AMOUNT
CRED-
ITABLE.—
‘‘(A) IN
GENERAL.—The amount of the
employment-related expenses incurred during
any taxable year which may be taken into ac-
count under subsection (a) shall not exceed—
‘‘(i) $2,400 if there is 1 qualifying in-
dividual with respect to the taxpayer for
such taxable year, or
194
‘‘(ii) $4,800 if there are 2 or more
qualifying individuals with respect to the
taxpayer for such taxable year.
The amount determined under clause (i) or (ii)
(whichever is applicable) shall be reduced by the
aggregate amount excludable from gross income
under section 129 for the taxable year.
‘‘(B) REDUCTION IN LIMIT FOR AMOUNT
OF RESPITE CARE EXPENSES.—The limitation
of subparagraph (A) shall be reduced by the
amount of the respite care expenses taken into
account by the taxpayer under subsection (a)
for the taxable year.
‘‘(3) EARNED INCOME LIMITATION.—
‘‘(A) IN GENERAL.—Except as otherwise
provided in this paragraph, the amount of the
employment-related expenses incurred during
any taxable year which may be taken into ac-
count under subsection (a) shall not exceed—
‘‘(i) in the case of an individual who
is not married at the close of such year,
such individual’s earned income for such
year, or
‘‘(ii) in the case of an individual who
is married at the close of such year, the
195
lesser of such individual’s earned income or
the earned income of his spouse for such
year.
‘‘(B) SPECIAL RULE FOR SPOUSE WHO IS
A
STUDENT
OR
INCAPABLE
OF
CARING
FOR
HIMSELF.—In the case of a spouse who is a
student or a qualified individual described in
subsection (d)(3), for purposes of subparagraph
(A), such spouse shall be deemed for each
month during which such spouse is a full-time
student at an educational institution, or is such
a qualifying individual, to be gainfully employed
and to have earned income of not less than—
‘‘(i) $200 if paragraph (2)(A)(i) ap-
plies for the taxable year, or
‘‘(ii) $400 if paragraph (2)(A)(ii) ap-
plies for the taxable year.
In the case of any husband and wife, this sub-
paragraph shall apply with respect to only one
spouse for any one month.
‘‘(c) RESPITE CARE EXPENSES.—For purposes of
this section—
‘‘(1) IN GENERAL.—The term ‘respite care ex-
penses’ means expenses paid (whether or not to en-
able the taxpayer to be gainfully employed) for—
196
‘‘(A) the care of a qualifying individual—
‘‘(i) who has attained the age of 13,
or
‘‘(ii) who is under the age of 13 but
has a physical or mental impairment which
results in the individual being incapable of
caring for himself,
during any period when such individual regu-
larly spends at least 8 hours each day in the
taxpayer’s household, or
‘‘(B) care (for not more than 14 days dur-
ing the calendar year) of a qualifying individual
described in subparagraph (A) during any pe-
riod during which the individual does not regu-
larly spend at least 8 hours each day in the tax-
payer’s household.
‘‘(2) DOLLAR LIMIT.—The amount of the res-
pite care expenses incurred during any taxable year
which may be taken into account under subsection
(a) shall not exceed—
‘‘(A) $1,200 if such expenses are incurred
with respect to only 1 qualifying individual for
the taxable year, or
197
‘‘(B) $2,400 if such expenses are incurred
for 2 or more qualifying individuals for such
taxable year.
‘‘(d) QUALIFYING INDIVIDUAL.—For purposes of this
section, the term ‘qualifying individual’ means—
‘‘(1) a dependent of the taxpayer who is under
the age of 13 and with respect to whom the taxpayer
is entitled to a deduction under section 151(e),
‘‘(2) a dependent of the taxpayer who is phys-
ically or mentally incapable of caring for himself, or
‘‘(3) the spouse of the taxpayer, if he is phys-
ically or mentally incapable of caring for himself.
‘‘(e) SPECIAL RULES.—For purposes of this sec-
tion—
‘‘(1) MAINTAINING
HOUSEHOLD.—An individ-
ual shall be treated as maintaining a household for
any period only if over half the cost of maintaining
the household for such period is furnished by such
individual (or, if such individual is married during
such period, is furnished by such individual and his
spouse).
‘‘(2) MARRIED COUPLES MUST FILE JOINT RE-
TURN.—If the taxpayer is married at the close of
the taxable year, the credit shall be allowed under
198
subsection (a) only if the taxpayer and his spouse
file a joint return for the taxable year.
‘‘(3) MARITAL STATUS.—An individual legally
separated from his spouse under a decree of divorce
or of separate maintenance shall not be considered
as married.
‘‘(4) CERTAIN
MARRIED
INDIVIDUALS
LIVING
APART.—If—
‘‘(A) an individual who is married and who
files a separate return—
‘‘(i) maintains as his home a house-
hold which constitutes for more than one-
half of the taxable year the principal place
of abode of a qualifying individual, and
‘‘(ii) furnishes over half the cost of
maintaining such household during the
taxable year, and
‘‘(B) during the last 6 months of such tax-
able year such individual’s spouse is not a mem-
ber of such household,
such individual shall not be considered as married.
‘‘(5) SPECIAL DEPENDENCY TEST IN CASE OF
DIVORCED PARENTS, ETC.—If—
199
‘‘(A) paragraph (2) or (4) of section
152(e) applies to any child with respect to any
calendar year, and
‘‘(B) such child is under the age of 13 or
is physically or mentally incapable of caring for
himself,
in the case of any taxable year beginning in such
calendar year, such child shall be treated as a quali-
fying individual with respect to the custodial parent
(within the meaning of section 152(e)(1)), and shall
not be treated as a qualifying individual with respect
to the noncustodial parent.
‘‘(6) PAYMENTS TO RELATED INDIVIDUALS.—
No credit shall be allowed under subsection (a) for
any amount paid by the taxpayer to an individual—
‘‘(A) with respect to whom, for the taxable
year, a deduction under section 151(e) (relating
to deduction for personal exemptions for de-
pendents) is allowable either to the taxpayer or
his spouse, or
‘‘(B) who is a child of the taxpayer (within
the meaning of section 151(e)(3)) who has not
attained the age of 19 at the close of the tax-
able year.
200
For purposes of this paragraph, the term ‘taxable
year’ means the taxable year of the taxpayer in
which the service is performed.
‘‘(7) STUDENT.—The term ‘student’ means an
individual who during each of 5 calendar months
during the taxable year is a full-time student at an
educational organization.
‘‘(8) EDUCATIONAL ORGANIZATION.—The term
‘educational organization’ means an educational or-
ganization described in section 170(b)(1)(A)(ii).
‘‘(9) IDENTIFYING
INFORMATION
REQUIRED
WITH RESPECT TO SERVICE PROVIDER.—No credit
shall be allowed under subsection (a) for any amount
paid to any person unless—
‘‘(A) the name, address, and taxpayer
identification number of such person are in-
cluded on the return claiming the credit, or
‘‘(B) if such person is an organization de-
scribed in section 501(c)(3) and exempt from
tax under section 501(a), the name and address
of such person are included on the return
claiming the credit.
In the case of a failure to provide the information
required under the preceding sentence, the preceding
sentence shall not apply if it is shown that the tax-
201
payer exercised due diligence in attempting to pro-
vide the information so required.
‘‘(f) REGULATIONS.—The Secretary shall prescribe
such regulations as may be necessary to carry out the pur-
poses of this section.’’
(b) CONFORMING AMENDMENTS.—
(1) Section 21 of such Code is hereby repealed.
(2) Paragraph (2) of section 129(b) of such
Code is amended by striking out ‘‘section 21(d)(2)’’
and inserting in lieu thereof ‘‘section 35(b)(3)(B)’’.
(3) Subsection (e) of section 213 of such Code
is amended by striking out ‘‘section 21’’ and insert-
ing in lieu thereof ‘‘section 35’’.
(c) TECHNICAL AMENDMENTS.—
(1) The table of sections for subpart C of part
IV of subchapter A of chapter 1 of such Code is
amended by striking out the item relating to section
35 and inserting in lieu thereof the following:
‘‘Sec. 35. Dependent care services.
‘‘Sec. 36. Overpayments of tax.’’
(2) The table of sections for subpart A of such
part IV is amended by striking out the item relating
to section 21.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1993.
202
Subtitle D—Tax Incentives for
Family-Friendly Workplaces
SEC. 331. SHORT TITLE.
This subtitle may be cited as the ‘‘Tax Incentives for
Family-Friendly Workplaces Act’’.
SEC. 332. SMALL BUSINESS FAMILY AND MEDICAL LEAVE
CREDIT.
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to business related credits) is amended by
adding at the end thereof the following new section:
‘‘SEC. 45A. SMALL BUSINESS FAMILY AND MEDICAL LEAVE
CREDIT.
‘‘(a) AMOUNT OF CREDIT.—For purposes of section
38, in the case of an eligible small business employer, the
amount of the small business family and medical leave
credit determined under this section for any taxable year
shall be an amount equal to 50 percent of the qualified
family and medical leave costs paid or incurred by the tax-
payer during such taxable year.
‘‘(b) LIMITATION ON CREDIT.—The credit allowed by
subsection (a) with respect to each employee for qualified
family and medical leave costs paid or incurred by the tax-
payer during the taxable year with respect to such em-
ployee shall not exceed $2,000.
203
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) ELIGIBLE SMALL BUSINESS EMPLOYER.—
The term ‘eligible small business employer’ means
any employer who complies with title I of the Family
and Medical Leave Act of 1993 but who is not re-
quired to comply with such title by reason of em-
ploying fewer than 50 employees during the periods
described in section 101(4)(A) of such Act.
‘‘(2) QUALIFIED FAMILY AND MEDICAL LEAVE
COSTS.—The term ‘qualified family and medical
leave costs’ means expenses incurred in connection
with complying with title I of the Family and Medi-
cal Leave Act of 1993.
‘‘(d) DENIAL OF DOUBLE BENEFIT.—No deduction
shall be allowed under this chapter for that portion of the
qualified family and medical leave costs otherwise allow-
able as a deduction for the taxable year which is equal
to the amount of the credit determined for such taxable
year under this section.’’
(b) TECHNICAL AMENDMENT.—Subsection (b) of
section 38 of such Code is amended by striking ‘‘plus’’
at the end of paragraph (7), by striking the period at the
end of paragraph (8) and inserting ‘‘, plus’’, and by add-
ing at the end thereof the following new paragraph:
204
‘‘(9) in the case of an eligible small business
employer (as defined in section 45A(c)), the small
business family and medical leave credit determined
under section 45A.’’
(c) CLERICAL AMENDMENT.—The table of sections
for subpart D of part IV of subchapter A of chapter 1
of such Code is amended by adding at the end the follow-
ing new item:
‘‘Sec. 45A. Small business family and medical leave credit.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to expenses paid or incurred after
the date which is 6 months after the date of the enactment
of the Family and Medical Leave Act of 1993.
SEC. 333. CREDIT FOR WAGES PAID TO EMPLOYEE WHO IS
ALLOWED TO SHIFT HOURS OF EMPLOYMENT
OR TO WORK AT HOME IN ORDER TO REDUCE
CHILD CARE NEEDS.
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to business related credits) is amended by
adding at the end thereof the following new section:
205
‘‘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.
‘‘(a) IN GENERAL.—For purposes of section 38, the
amount of the child care-related wage credit determined
under this section for any taxable year shall be an amount
equal to 1⁄3 of the aggregate wages paid or incurred during
such year which are attributable to services performed by
an employee of the taxpayer during the 1–year period be-
ginning on the date the employee first becomes a qualified
employee of the taxpayer.
‘‘(b) QUALIFIED EMPLOYEE.—For purposes of this
section, the term ‘qualified employee’ means any full-time
employee if—
‘‘(1) such employee is permitted by the em-
ployer, solely in order to reduce the amount of de-
pendent care services provided (to a dependent of
the employee) outside the employee’s household, to
perform services for the employer—
‘‘(A) at the employee’s home, or
‘‘(B) during a period which is not within
the normal business hours of the employer, and
‘‘(2) as a result of the services performed for
the employer as described in subparagraphs (A) and
(B) of paragraph (1), there is at least a 20 percent
206
reduction in the amount of time dependent care
services are provided to a dependent of the employee
outside the employee’s household.
‘‘(c) OTHER DEFINITIONS AND SPECIAL RULES.—
‘‘(1) EMPLOYEE
MUST
BE
QUALIFIED
EM-
PLOYEE FOR ENTIRE YEAR.—No credit shall be de-
termined under subsection (a) with respect to any
employee unless such employee is a qualified em-
ployee throughout the 1–year period described in
subsection (a).
‘‘(2) ONLY $6,000 OF WAGES PER YEAR TAKEN
INTO ACCOUNT.—The amount of the wages which
may be taken into account with respect to any indi-
vidual shall not exceed $6,000 per year.
‘‘(3) WAGES.—For purposes of this section, the
term ‘wages’ has the meaning given such term by
section 51(c) (determined without regard to para-
graph (4) thereof).
‘‘(4) CERTAIN RULES TO APPLY.—Rules similar
to the rules of section 52 and subsections (f)
through (k) of section 51 shall apply for purposes of
this section.’’
(b) TECHNICAL AMENDMENT.—Subsection (b) of
section 38 of such Code (relating to current year business
credit) is amended by striking ‘‘plus’’ at the end of para-
207
graph (8), by striking the period at the end of paragraph
(9) and inserting ‘‘, plus’’, and by adding at the end there-
of the following new paragraph:
‘‘(10) the child care-related wage credit deter-
mined under section 45B(a).’’
(c) CLERICAL AMENDMENT.—The table of sections
for subpart D of part IV of subchapter A of chapter 1
of such Code is amended by adding at the end thereof
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.’’
(d) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
this section shall apply to wages paid or incurred
after the date which is 6 months after the date of
the enactment of the Family and Medical Leave Act
of 1993.
(2) EMPLOYER PRACTICES BEFORE EFFECTIVE
DATE.—For purposes of section 45B(b)(2) of the In-
ternal Revenue Code of 1986, as added by this sec-
tion, no reduction before the 1st taxable year to
which such section applies shall be taken into ac-
count.
208
Subtitle E—Federal Parental Leave
for Education Activities
SEC. 341. PARENTAL LEAVE FOR EDUCATION-RELATED AC-
TIVITIES.
(a) IN GENERAL.—(1) Subchapter II of chapter 63
of title 5, United States Code, is amended by adding at
the end the following:
‘‘§ 6327. Parental leave for education-related activi-
ties
‘‘(a) For the purpose of this section—
‘‘(1) the term ‘dependent’ means a child under
subparagraph (A) or (B) of section 8341(a)(4); and
‘‘(2) the term ‘intimidate, threaten, or coerce’
includes promising to confer or conferring any bene-
fit (such as appointment, promotion, or compensa-
tion), or effecting or threatening to effect any re-
prisal (such as deprivation of appointment, pro-
motion, or compensation).
‘‘(b)(1) Subject to paragraph (2) and subsection (c),
an employee is entitled to 1 day of leave in each calendar
year, without loss of, or reduction in, pay, leave to which
such employee is otherwise entitled, credit for time or serv-
ice, or performance or efficiency rating, in order to partici-
pate in or attend activities of a school which is attended
by a dependent of such employee.
209
‘‘(2) In the case of an employee serving on a part-
time basis who is entitled to leave under this section, the
length of the ‘day’ under paragraph (1) shall be prorated
in accordance with regulations prescribed under sub-
section (d).
‘‘(c) An employee shall be eligible for leave under this
section if such employee—
‘‘(1) is employed in an Executive agency; and
‘‘(2) has performed at least 12 months of serv-
ice as an employee (continuously or otherwise) in 1
or more Executive agencies.
‘‘(d)(1) The Office of Personnel Management shall
prescribe such regulations as may be necessary to carry
out this section.
‘‘(2) Such regulations—
‘‘(A) may include provisions under which leave
under this section may, at the option of the em-
ployee, be used in units of hours or other periods al-
lowable under the regulations; but
‘‘(B) may not—
‘‘(i) make an employee ineligible for leave
under this section by virtue of the fact that
such employee is serving on a temporary or
intermittent basis; or
210
‘‘(ii) for purposes of any determination
under subsection (c)(2), exclude prior service by
virtue of the fact that such service was per-
formed on a temporary or intermittent basis.
‘‘(e) Leave which is available to an employee under
this section in a year, but which is not used by such em-
ployee, shall not accumulate for use in a succeeding year.
‘‘(f) An employee may not directly or indirectly in-
timidate, threaten, or coerce, or attempt to intimidate,
threaten, or coerce, any other employee for the purpose
of interfering with such other employee’s rights under the
preceding provisions of this section.’’.
(2) The table of sections for chapter 63 of title 5,
United States Code, is amended by adding after the item
relating to section 6326 the following:
‘‘6327. Parental leave for education-related activities.’’.
(b) TECHNICAL AMENDMENT.—Section 6129 of title
5, United States Code, is amended by inserting ‘‘6327,’’
after ‘‘6326,’’.
SEC. 342. EFFECTIVE DATE; CREDITABILITY OF SERVICE.
(a) EFFECTIVE DATE.—This Act shall take effect as
of the first day of the calendar year in which this Act is
enacted.
(b) CREDITABILITY OF SERVICE.—To determine if
an individual satisfies the requirement under section
6327(c)(2) of title 5, United States Code, as amended by
211
this Act, service shall be taken into account without regard
to whether performed before, on, or after the date of en-
actment of this Act.
TITLE IV—ECONOMIC SELF-
SUFFICIENCY
Subtitle A—Child Support
SEC. 401. SHORT TITLE.
This subtitle may be cited as the ‘‘Child Support Eco-
nomic Security Act of 1993’’.
PART A—CHILD SUPPORT ENFORCEMENT
AMENDMENTS
SEC. 411. UNIFORM STATEWIDE CHILD SUPPORT ENFORCE-
MENT PROGRAM.
Section 454(3) of the Social Security Act (42 U.S.C.
654(3)) is amended by striking ‘‘, which meets’’ and all
that follows and inserting ‘‘at the State level to administer
the plan under rules that apply uniformly throughout the
State;’’.
SEC. 412. ACCESS OF STATE CHILD SUPPORT ENFORCE-
MENT AGENCY TO INFORMATION IN STATE
DATA BASES.
Section 466(a) of the Social Security Act (42 U.S.C.
666(a)) is amended by inserting after paragraph (10) the
following:
212
‘‘(11) Procedures which ensure that the agency
administering the plan under section 454 has on-line
access to all information contained in any data base
maintained by the State or any political subdivision
of the State.’’.
SEC. 413. CHILD SUPPORT PAYMENTS REQUIRED UNTIL
CERTAIN EVENT OCCURS.
Section 466(a) of the Social Security Act (42 U.S.C.
666(a)), as amended by section 412 of this Act, is amend-
ed by inserting after paragraph (11) the following:
‘‘(12)(A) Procedures which ensure that any
court order, or order of an administrative process es-
tablished under State law, for support or mainte-
nance of a child, requires the payment of such sup-
port until the child—
‘‘(i) if not disabled—
‘‘(I) attains the age of 18 years;
‘‘(II) is graduated from secondary
school or its equivalent, or, having been en-
rolled at such a school or equivalent, is no
longer so enrolled at any such school or
equivalent;
‘‘(III) marries; or
‘‘(IV) is emancipated by a court of
competent jurisdiction; or
213
‘‘(ii) if disabled—
‘‘(I) marries; or
‘‘(II) is able to support himself or her-
self.
‘‘(B) For purposes of subparagraph (A), the
term ‘disabled’ means having a severe, chronic dis-
ability which—
‘‘(i) is attributable to a mental or physical
impairment, or combination of mental and
physical impairments;
‘‘(ii) is likely to continue indefinitely;
‘‘(iii) results in substantial functional limi-
tations in 3 or more of the following areas of
major life activity:
‘‘(I) self-care;
‘‘(II) receptive and expressive lan-
guage;
‘‘(III) learning;
‘‘(IV) mobility;
‘‘(V) capacity for independent living;
‘‘(VI) economic self-sufficiency; and
‘‘(iv) reflects the need for a combination of
special, interdisciplinary, or generic care, treat-
ment, or other services that are of lifelong or
extended duration.’’.
214
SEC. 414. REQUIREMENT THAT ALL INCOME BE SUBJECT
TO WITHHOLDING TO MEET CHILD SUPPORT
OBLIGATIONS.
Section 466(a) of the Social Security Act (42 U.S.C.
666(a)), as amended by the preceding provisions of this
Act, is amended by inserting after paragraph (12) the fol-
lowing:
‘‘(13)(A) Procedures which ensure that all in-
come of an individual (other than benefits received
through a Federal, State, or local program under
which entitlement to benefits is based on the means
of the beneficiary) is subject to withholding to meet
the child support obligations of the individual.
‘‘(B) Procedures which require the agency re-
sponsible for the operation of any State lottery (in
this subparagraph referred to as the ‘lottery agen-
cy’)—
‘‘(i) to inquire of the agency administering
the plan under section 454 whether any person
to whom the lottery agency is to directly pay
lottery winnings owes overdue support;
‘‘(ii) to defer payment of the winnings
until the lottery agency receives a response to
the inquiry; and
215
‘‘(iii) if the person owes overdue support,
to withhold from the payment of the winnings
the amount of the overdue support.
‘‘(C) Procedures which require any insurer sub-
ject to regulation by the State—
‘‘(i) to inquire of the agency administering
the plan under section 454 whether any person
claiming benefits under a policy of insurance is-
sued by the insurer owes overdue support;
‘‘(ii) to defer payment of such benefits
until the insurer receives a response to the in-
quiry; and
‘‘(iii) if the person owes overdue support—
‘‘(I) to withhold from such benefits
the amount of the overdue support; and
‘‘(II) to provide to the agency the
amount withheld for payment to the indi-
vidual owed the support.
‘‘(D) Procedures which prevent a State court
from entering an order awarding the payment of
money to any person, or accepting an agreement set-
tling an action brought in the court that requires
money to be paid to any person, until—
‘‘(i) the court has inquired of the agency
administering the plan under section 454
216
whether the person owes overdue support, and
has received a response to the inquiry; and
‘‘(ii) if the person owes overdue support,
the person pays the amount of the overdue sup-
port.
‘‘(E) Procedures which prevent any agency of
State or local government from recording a property
transaction, until—
‘‘(i) the agency has inquired of the agency
administering the plan under section 454
whether any party to the transaction owes over-
due support, and has received a response to the
inquiry; and
‘‘(ii) any such party—
‘‘(I) pays the amount of any overdue
support; or
‘‘(II) demonstrates that the party has
made a good faith effort—
‘‘(aa) to pay the support due for
the month in which the transaction is
sought to be recorded; and
‘‘(bb) to provide for the payment
of the overdue support through regu-
lar, periodic payments.’’.
217
SEC. 415. STATE LICENSES DENIED TO PARENTS WITH
PAST DUE CHILD SUPPORT OBLIGATIONS.
Section 466(a) of the Social Security Act (42 U.S.C.
666(a)), as amended by the preceding provisions of this
Act, is amended by inserting after paragraph (13) the fol-
lowing:
‘‘(14) Procedures which prohibit the provision,
renewal, or reissuance of any license, required under
the law of the State or of any political subdivision
thereof before engaging in conduct subject to the li-
cense, to any person the amount of whose overdue
support exceeds $1,000, until the person dem-
onstrates that the person has made a good faith ef-
fort—
‘‘(A) to pay the support due for the month
in which the license was requested to be pro-
vided, renewed, or reissued; and
‘‘(B) to provide for the payment of the
overdue support through regular, periodic pay-
ments.’’.
SEC. 416. CERTAIN OVERDUE CHILD SUPPORT OBLIGA-
TIONS 
REQUIRED 
TO 
BE 
REPORTED 
TO
CONSUMER CREDIT REPORTING AGENCIES.
Section 466(a)(7) of the Social Security Act (42
U.S.C. 666(a)(7)) is amended to read as follows:
218
‘‘(7) Procedures which ensure that the agency
administering the plan under section 454—
‘‘(A) reports to the major consumer report-
ing agencies (as defined in section 603(f) of the
Fair Credit Reporting Act) the amount of over-
due support owed by an individual residing in
the State if the amount of the delinquency ex-
ceeds the amount of child support payable by
the individual on a monthly basis; and
‘‘(B) upon request of a consumer reporting
agency, furnishes the consumer reporting agen-
cy information on the amount of overdue sup-
port owed by an individual residing in the
State, for a fee equal to not more than the cost
of furnishing the information;’’.
SEC. 417. ELIMINATION OF STATUTES OF LIMITATIONS IN
CHILD SUPPORT CASES.
Section 466(a) of the Social Security Act (42 U.S.C.
666(a)), as amended by the preceding provisions of this
Act, is amended by inserting after paragraph (14) the fol-
lowing:
‘‘(15) Procedures which ensure that there is no
limit to the period in which any court order, or order
of an administrative process established under State
219
law, for support or maintenance of a child, may be
enforced.’’.
SEC. 418. REQUIREMENT THAT SOCIAL SECURITY NUM-
BERS APPEAR ON MARRIAGE LICENSES AND
CHILD SUPPORT ORDERS.
Section 466(a) of the Social Security Act (42 U.S.C.
666(a)), as amended by the preceding provisions of this
Act, is amended by inserting after paragraph (15) the fol-
lowing:
‘‘(16) Procedures which ensure that, on each
marriage license issued by the State, and in each
court order, or order of an administrative process es-
tablished under State law, for support or mainte-
nance of a child, there appear the social security ac-
count numbers of each individual to whom the li-
cense is issued or upon whom the order imposes a
support obligation.’’.
SEC. 419. SEPARATE TREATMENT OF CASES ALLEGING
NONSUPPORT AND CASES ALLEGING DENIAL
OF VISITATION RIGHTS.
Section 466(a) of the Social Security Act (42 U.S.C.
666(a)), as amended by the preceding provisions of this
Act, is amended by inserting after paragraph (16) the fol-
lowing:
‘‘(17) Procedures which ensure that—
220
‘‘(A) conduct affecting the exercise of visi-
tation rights under a court order, or an order
of an administrative process established under
State law, for support or maintenance of a
child, shall be treated as irrelevant in any ac-
tion brought to enforce the support provisions
of the order; and
‘‘(B) the provision of, or failure to provide,
support pursuant to such an order shall be
treated as irrelevant in any action brought to
enforce visitation rights under the order.’’.
SEC. 420. TIMELY RESPONSE TO INTERSTATE LOCATE RE-
QUESTS.
Section 452(a) of the Social Security Act (42 U.S.C.
652(a)) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(9);
(2) by striking the period at the end of para-
graph (10) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(11) in establishing standards under para-
graph (1) for locating absent parents—
‘‘(A) not later than 1 year after the date
of the enactment of this paragraph, prescribe
deadlines by which States must respond to re-
221
quests from other States for information, tak-
ing into account the state of available tech-
nology; and
‘‘(B) review and, if appropriate, revise
such deadlines every 3 years taking into ac-
count the state of available technology.’’.
SEC. 421. REGULATIONS FOR PROCESSING OF INTERSTATE
CHILD SUPPORT CASES.
Section 452 of the Social Security Act (42 U.S.C.
652) is amended by adding at the end the following:
‘‘(j) The Secretary shall issue regulations establishing
standards and procedures governing the processing by
States of cases involving the enforcement of child support
obligations against parents in other States, including a
deadline by which prosecutions must commence after the
case first comes to the attention of the State, and a dead-
line by which such actions must be decided or dismissed.’’.
SEC. 422. FINANCIAL INCENTIVES.
(a) ONLY CHILD SUPPORT ENFORCEMENT FUNDS
SUBJECT TO REDUCTION FOR SUBSTANTIAL NONCOMPLI-
ANCE.—
(1) IN
GENERAL.—Subsection (h) of section
403 of such Act (42 U.S.C. 603(h)) is hereby trans-
ferred to section 455 of such Act, redesignated as
subsection (f) of such section 455, and amended—
222
(A) in paragraph (1)—
(i) by striking ‘‘Act’’ and inserting
‘‘part’’;
(ii) by striking ‘‘part D’’ and inserting
‘‘this part’’; and
(iii) by striking ‘‘such part’’ and in-
serting ‘‘this part’’; and
(B) in paragraph (3), by striking ‘‘this
part’’ and inserting ‘‘part A’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 452(a)(4) of such Act (42
U.S.C. 652(a)(4)) is amended by striking
‘‘403(h)’’ each place such term appears and in-
serting ‘‘455(f)’’.
(B) Subsections (d)(3)(A), (g)(1), and
(g)(3)(A) of section 452 of such Act (42 U.S.C.
652) are each amended by striking ‘‘403(h)’’
and inserting ‘‘455(f)’’.
(b) PAYMENTS TO STATES INCREASED.—
(1) IN GENERAL.—Section 455(a) of such Act
(42 U.S.C. 655(a)) is amended—
(A) in paragraph (1)—
(i) by striking ‘‘(a)(1)’’ and inserting
‘‘(a)’’; and
223
(ii) in subparagraph (A), by striking
‘‘the percent specified in paragraph (2)’’
and inserting ‘‘90 percent’’; and
(iii) in each of subparagraphs (B) and
(C), by striking ‘‘(rather than the percent-
age specified in subparagraph (A))’’;
(B) by striking paragraph (2); and
(C) by redesignating subparagraphs (A),
(B), and (C) of paragraph (1) as paragraphs
(1), (2), and (3), respectively.
(2) CONFORMING
AMENDMENTS.—Paragraphs
(1)(B), (2)(A), and (2)(B) of section 452(d) of such
Act (42 U.S.C. 652(d)) are each amended by strik-
ing ‘‘455(a)(1)(B)’’ and inserting ‘‘455(a)(2)’’.
(c) REPEAL OF INCENTIVE PAYMENTS TO STATES.—
Section 458 of such Act (42 U.S.C. 658) is hereby re-
pealed.
SEC. 423. DEADLINE FOR ADOPTION OF UNIFORM INTER-
STATE FAMILY SUPPORT ACT.
Part D of title IV of the Social Security Act (42
U.S.C. 651–669) is amended by adding at the end the fol-
lowing:
224
‘‘SEC. 469A. ADOPTION OF UNIFORM INTERSTATE FAMILY
SUPPORT ACT.
‘‘As a condition for the approval of any State plan
under this part, the State must, not later than the effec-
tive date of this section, have in effect a law identical to
the Uniform Interstate Family Support Act, in the form
most recently adopted by the National Conference of Com-
missioners on Uniform State Laws before the enactment
of this section.’’.
SEC. 424. COMMISSION ON CHILD SUPPORT GUIDELINES.
(a) ESTABLISHMENT.—There is hereby established a
commission to be known as the Commission on Child Sup-
port Guidelines (in this section referred to as the ‘‘Com-
mission’’).
(b) APPLICABLE RULES.—Subsection (b) (except the
first sentence of paragraph (4) thereof), and subsections
(c), (e), (f)(2), and (g), of section 126 of the Family Sup-
port Act (42 U.S.C. 666 note; Public Law 100–485) shall
apply to the Commission in the same manner as such pro-
visions apply to the Commission on Interstate Child Sup-
port.
(c) QUALIFICATIONS.—Each person with authority to
make appointments to the Commission shall exercise the
authority to ensure that the Commission includes—
225
(1) persons with judicial or administrative expe-
rience in matters involving child support enforce-
ment; and
(2) representatives of organizations which rep-
resent custodial and noncustodial parents.
(d) DUTY.—Not later than 18 months after the last
of the initial appointments to the Commission is made,
the Commission shall submit to the Congress a report con-
taining recommendations for national guidelines for child
support award amounts, after consideration of the guide-
lines established by each State pursuant to section 467(a)
of the Social Security Act.
(e) TERMINATION.—The Commission shall terminate
2 months after the date of submission of the report re-
quired by subsection (d).
(f) EFFECTIVE DATE.—This section shall take effect
on the date of the enactment of this Act.
SEC. 425. EFFECTIVE DATE.
Except as otherwise provided in this title (or in the
amendments made by this title), the amendments made
by this title shall take effect on the 1st day of the 12th
calendar quarter beginning after the date of the enactment
of this Act.
226
PART B—INTERSTATE CHILD SUPPORT ACT OF
1993
SEC. 431. REFERENCE.
Except as otherwise specifically provided, wherever in
this Act an amendment is expressed in terms of an amend-
ment to or repeal of a section or other provision, the ref-
erence shall be considered to be made to that section or
other provision of the Social Security Act.
SEC. 432. FINDINGS, DECLARATIONS, AND PURPOSES.
(a) FINDINGS.—The Congress finds that—
(1) there is a large and growing number of
child support and parentage cases annually involving
disputes between parents or presumed parents who
reside in different States;
(2) the laws by which the courts of the various
States determine their authority to establish, en-
force, or modify a child support order, or to deter-
mine parentage are not uniform;
(3) those laws, along with the limits imposed by
a Federal system, on the authority of each State to
take certain actions outside its own boundaries, con-
tribute to—
(A) the pressing problem of parties moving
to avoid jurisdiction;
(B) inequities based solely on choice of
domicile;
227
(C) disregard of court orders resulting in
massive arrearages nationwide;
(D) excessive relitigation of cases;
(E) the establishment of conflicting orders
by the courts of various States; and
(F) inter-jurisdiction travel and commu-
nication that is so expensive and time consum-
ing as to disrupt parties’ occupations and com-
mercial activities; and
(4) among the results of these conditions are—
(A) the failure of the courts of such juris-
dictions to give full faith and credit to the judi-
cial proceedings of the other States;
(B) the deprivation of rights of liberty and
property without due process of law;
(C) burdens on commerce among the
States; and
(D) harm to the welfare of children and
their parents and other custodians.
(b) DECLARATION.—Based on the findings stated in
subsection (a), it is necessary to establish national stand-
ards under which the courts of each State will determine
their jurisdiction to establish, enforce, or modify a child
support order, or to determine parentage and the effect
228
to be given by each State to such determinations by the
courts of other States.
(c) PURPOSES.—The purposes of this Act are to—
(1) expand the forums available to establish,
enforce, or modify a child support order, or to deter-
mine parentage so that such actions may be heard
in the State that has the strongest interest in the
child’s financial security;
(2) promote and expand the exchange of infor-
mation and other forms of mutual assistance be-
tween States that are concerned with the same child;
(3) facilitate the enforcement of support decrees
among the States;
(4) discourage continuing interstate controver-
sies over child support in the interest of greater fi-
nancial stability and secure family relationships for
the child; and
(5) avoid jurisdictional competition and conflict
between courts in matters relating to the establish-
ment, enforcement, and modification of child support
orders, and to the determination of parentage, which
have resulted in the movement of parties among
States and a low percentage of interstate cases with
support orders, thereby adversely affecting children’s
well-being.
229
(d) STATE.—For purposes of this section, the term
‘‘State’’ means the several States, the District of Colum-
bia, the Commonwealth of Puerto Rico, the territories and
possessions of the United States, and Indian country (as
defined in section 1151 of title 18, United States Code).
PART C—BANKRUPTCY AMENDMENTS RELATING
TO CHILD SUPPORT, ALIMONY, AND PROP-
ERTY SETTLEMENT AGREEMENTS
SEC. 441. EXCEPTIONS TO STAY.
Section 362(b)(2) of title 11, United States Code, is
amended to read as follows:
‘‘(2) under subsection (a) of this section—
‘‘(A) of the commencement or continuation
of an action or proceeding for—
‘‘(i) the establishment of paternity; or
‘‘(ii) the establishment or modification
of an order for alimony, maintenance, or
support; or
‘‘(B) of the collection of—
‘‘(i) alimony, maintenance, or support
from property that is not property of the
estate; or
‘‘(ii) a debt of the kind specified in
section 523(a)(5) of this title to a child of
230
the debtor if the claim for such debt arises
after the commencement of the case;’’.
SEC. 442. PRIORITY.
Section 507(a) of title 11, United States Code, is
amended—
(1) in paragraph (8) by striking ‘‘(8) Eighth’’
and inserting ‘‘(9) Ninth’’,
(2) in paragraph (7) by striking ‘‘(7) Seventh’’
and inserting ‘‘(8) Eighth’’, and
(3) by inserting after paragraph (6) the follow-
ing:
‘‘(7) Seventh, allowed claims of the kind speci-
fied in section 523(a)(5) of this title.’’.
SEC. 443. EXEMPTIONS.
Section 522(f) of title 11, United States Code, is
amended—
(1) in paragraph (2)(C) by striking the period
at the end and inserting a semicolon, and
(2) by adding at the end the following:
‘‘and does not secure a claim for a debt of a kind specified
in section 523(a)(5) of this title.’’.
SEC. 444. EXCEPTION TO DISCHARGE.
Section 523(a)(5) of title 11, United States Code, is
amended to read as follows:
231
‘‘(5) to a spouse, former spouse, or child of the
debtor—
‘‘(A) for alimony to, maintenance for, or
support of such spouse or child, in connection
with a separation agreement, divorce decree or
other order of a court of record, determination
made in accordance with State or territorial law
by a governmental unit, or property settlement
agreement, but not the extent that such debt
includes a liability designated as alimony, main-
tenance, or support, unless such liability is ac-
tually in the nature of alimony, maintenance, or
support; or
‘‘(B) for any liability under the terms of a
property settlement agreement entered into in
connection with a separation agreement or di-
vorce decree;
except to the extent such debt is assigned to another
entity, voluntarily, by operation of law, or otherwise
(other than debts assigned pursuant to section
402(a)(26) of the Social Security Act, or any such
debt which has been assigned to the Federal Govern-
ment or to a State or any political subdivision of
such State).’’.
232
SEC. 445. PREFERENCES.
Section 547(c) of title 11, United States Code,
is amended—
(1) in paragraph (6) by striking ‘‘or’’ at
the end,
(2) by redesignating paragraph (7) as
paragraph (8), and
(3) by inserting after paragraph (6) the
following:
‘‘(7) to the extent such transfer was a bona fide
payment of a debt of a kind specified in section
523(a)(5) of this title; or’’.
SEC. 446. PROPERTY OF THE ESTATE.
(a) PROPERTY UNDER CHAPTER 12.—Paragraphs
(1) and (2) of section 1207(a) of title 11, United States
Code, are amended by striking ‘‘but’’ and all that follows
through ‘‘first’’, and inserting the following:
‘‘until the plan is confirmed, except that such prop-
erty as is necessary to fund the plan and is specified
in the plan or order confirming the plan shall re-
main property of the estate’’.
(b) PROPERTY UNDER CHAPTER 13.—Paragraphs
(1) and (2) of section 1306(a) of title 11, United States
Code, are amended by striking ‘‘but’’ and all that follows
through ‘‘first’’, and inserting the following:
233
‘‘until the plan is confirmed, except that such prop-
erty as is necessary to fund the plan and is specified
in the plan or order confirming the plan shall re-
main property of the estate’’.
SEC. 447. CONFIRMATION OF PLAN.
(a) CONFIRMATION UNDER CHAPTER 12.—Section
1225(a) of title 11, United States Code, is amended—
(1) in paragraph (5) by striking ‘‘and’’ at the
end,
(2) by redesignating paragraph (6) as para-
graph (7), and
(3) by inserting after paragraph (5) the follow-
ing:
‘‘(6) the debtor has paid all allowable claims
arising after the order for relief for debts of the
kinds specified in section 523(a)(5) of this title;
and’’.
(b) CONFIRMATION UNDER CHAPTER 13.—Section
1325(a) of title 11, United States Code, is amended—
(1) in paragraph (5)(C) by striking ‘‘and’’ at
the end,
(2) by redesignating paragraph (6) as para-
graph (7), and
(3) by inserting after paragraph (5) the follow-
ing:
234
‘‘(6) the debtor has paid all allowable claims
arising after the order for relief for debts of the
kinds specified in section 523(a)(5) of this title;
and’’.
SEC. 448. EXEMPTION.
Representatives of child support creditors shall be
permitted to appear and intervene without charge, and
without meeting any special local court rule requirement
for attorney appearances, in any bankruptcy proceeding
in any bankruptcy court or district court of the United
States if such representatives file a form in such court
that contains information detailing the child support debt,
its status, and other characteristics.
SEC. 449. EFFECTIVE DATE; APPLICATION OF AMEND-
MENTS.
(a) EFFECTIVE DATE.—Except as provided in sub-
section (b), this title and the amendments made by this
title shall take effect on the date of the enactment of this
Act.
(b) APPLICATION OF AMENDMENTS.—The amend-
ments made by this title shall not apply with respect to
cases commenced under title 11 of the United States Code
before the date of the enactment of this Act.
235
PART D—LOCATE AND CASE TRACKING
SEC. 451. EXPANSION OF FUNCTIONS OF FEDERAL PARENT
LOCATOR SERVICE.
(a) IN GENERAL.—Section 453 (42 U.S.C. 653) is
amended—
(1) in subsection (a), by striking ‘‘enforcing
support obligations against such parent’’ and insert-
ing ‘‘establishing parentage, establishing, modifying,
and enforcing child support obligations, and enforc-
ing child visitation rights and responsibilities, and
which shall use safeguards to prevent the disclosure
of information in cases that would jeopardize the
safety of the custodial parent or any child of the
custodial parent’’;
(2) in subsection (b), by inserting after the 2nd
sentence the following: ‘‘Information with respect to
an absent parent shall not be disclosed to any person
if the disclosure would jeopardize the safety of the
custodial parent or any child of the custodial parent.
Information with respect to an absent parent shall
not be disclosed to any person (other than the custo-
dial parent) unless the custodial parent has been no-
tified in advance of the disclosure.’’; and
(3) in subsection (d), by inserting ‘‘and such
reasonable fees’’ after ‘‘such documents’’.
236
(b) SENSE OF THE CONGRESS.—It is the sense of
the Congress that—
(1) the denial of visitation rights under a child
support order should be treated as irrelevant in any
action brought to enforce the support provisions of
the order; and
(2) the failure to pay child support pursuant to
a child support order should be treated as irrelevant
in any action brought to enforce visitation rights
under the order.
SEC. 452. EXPANSION OF DATA BASES ACCESSED BY PAR-
ENT LOCATOR SYSTEMS.
(a) ADDITIONAL INFORMATION FOR FEDERAL PAR-
ENT LOCATOR SERVICE.—Section 453 (42 U.S.C. 653) is
amended—
(1) in subsection (b), by striking ‘‘the most re-
cent address and place of employment’’ and insert-
ing ‘‘the most recent residential address, employer
name and address, and amounts and nature of in-
come and assets’’;
(2) in subsection (c)(3), by striking ‘‘the resi-
dent parent’’ and inserting ‘‘either parent’’; and
(3) in subsection (e), by adding at the end the
following:
237
‘‘(4) The Secretary of the Treasury shall enter into
an agreement with the Secretary to provide prompt access
by the Secretary (in accordance with this subsection and
section 6103(l)(6) of the Internal Revenue Code of 1986)
to the quarterly estimated Federal income tax returns
filed by individuals with the Internal Revenue Service.’’.
(b) STATE
INFORMATION.—Section 466(a) (42
U.S.C. 666(a)) is amended by inserting after paragraph
(10) the following:
‘‘(11) Procedures under which the State child
support enforcement agency shall have automated
on-line 
or 
batch 
access 
(or, 
if 
necessary,
nonautomated access) to information regarding resi-
dential addresses, employers and employer address-
es, income and assets, and medical insurance bene-
fits with respect to absent parents that is available
through any data base maintained by—
‘‘(A) any agency of the State or any politi-
cal subdivision thereof, that contains informa-
tion on residential addresses, or on employers
and employer addresses, as the State deems ap-
propriate;
‘‘(B) any publicly regulated utility com-
pany located in the State;
238
‘‘(C) any credit reporting agency located in
the State; and
‘‘(D) any trade or labor union located in
the State.
‘‘(12) Procedures under which the State child
support enforcement agency shall—
‘‘(A) maintain a child support order reg-
istry which shall include each child support
order (or an abstract thereof) issued or modi-
fied in the State on or after the effective date
of this paragraph; and
‘‘(B) transmit electronically to the Office
of Child Support Enforcement an abstract of
each such order, containing such information
and in such form as the Secretary may pre-
scribe pursuant to section 452(a)(11).’’.
(c) FEDERAL REGISTRY OF ABSTRACTS OF CHILD
SUPPORT ORDERS.—Section 452(a) (42 U.S.C 652(a)),
as amended by section 472(a) of this Act, is amended—
(1) in paragraph (10), by striking ‘‘and’’ after
the semicolon;
(2) in paragraph (11), by striking the period at
the end of the 2nd sentence and inserting ‘‘; and’’;
and
(3) by adding at the end the following:
239
‘‘(12) maintain a registry of all child support
order abstracts received from States pursuant to
section 466(a)(12)(B).’’.
(d) SENSE OF THE CONGRESS.—It is the sense of
the Congress that the Secretary of Health and Human
Services should investigate, pursuant to section 453(e) of
the Social Security Act, accessing Federal data banks that
are not linked to the Parent Locator Service which are
more than marginally useful in locating absent parents.
SEC. 453. EXPANSION OF ACCESS TO NATIONAL NETWORK
FOR LOCATION OF PARENTS.
(a) IN GENERAL.—Section 453 (42 U.S.C. 653) is
amended by adding at the end the following:
‘‘(g) The Secretary shall expand the Parent Locator
Service to establish a national network based on the com-
prehensive statewide child support enforcement systems
developed by the States, to—
‘‘(1) allow each State to—
‘‘(A) locate any absent parent who owes
child support, for whom a child support obliga-
tion is being established, or for whom an order
for visitation is being enforced, by—
‘‘(i) accessing the records of other
State agencies and sources of locate infor-
240
mation directly from one computer system
to another; and
‘‘(ii) accessing Federal sources of lo-
cate information in the same fashion;
‘‘(B) access the files of other States to de-
termine whether there are other child support
orders and obtain the details of those orders;
‘‘(C) provide for both on-line and batch
processing of locate requests, with on-line ac-
cess restricted to cases in which the information
is needed immediately (for such reasons as
court appearances) and batch processing used
to ‘troll’ data bases to locate individuals or up-
date information periodically; and
‘‘(D) direct locate requests to individual
States or Federal agencies, broadcast requests
to selected States, or broadcast cases to all
States when there is no indication of the source
of needed information;
‘‘(2) provide for a maximum of 48-hour turn-
around time for information to be broadcast and re-
turned to a requesting State;
‘‘(3) provide ready access to courts of the infor-
mation on the network by location of a computer
terminal in each court; and
241
‘‘(4) access the registry of child support orders
for public and private cases maintained at the State
level by the State agencies as described in section
466(a)(12).’’.
(b) EXPANDED STATE INTERACTION WITH NA-
TIONAL
NETWORK.—Section 
454(16) 
(42 
U.S.C.
654(16)) is amended—
(1) by striking ‘‘and (E)’’ and inserting ‘‘(E)’’;
and
(2) by striking ‘‘enforcement;’’ and inserting
‘‘enforcement, and (F) to provide access to the na-
tional network developed pursuant to section
453(g);’’.
(c) SENSE OF THE CONGRESS.—It is the sense of the
Congress that the national network established under sec-
tion 453(g) of the Social Security Act should be used to
access State records only through the agency that admin-
isters the State plan approved under part D of title IV
of such Act.
SEC. 454. PRIVATE ACCESS TO LOCATE AND ENFORCEMENT
SERVICES.
Section 466(a) (42 U.S.C. 666(a)), as amended by
section 452(b) of this Act, is amended by inserting after
paragraph (12) the following:
242
‘‘(13)(A) Procedures under which private attor-
neys and pro se obligees must be given access to
State locate resources and through enforcement
techniques of the State child support enforcement
agency, for the purpose of establishing, modifying,
and enforcing child support, visitation, and parent-
age orders, in accordance with safeguards estab-
lished—
‘‘(i) to provide the custodial parent ad-
vance notice of any release of information with
respect to a noncustodial parent; and
‘‘(ii) to prevent release of information with
respect to a noncustodial parent if the release
may jeopardize the safety of the noncustodial
parent, the custodial parent, or any child of ei-
ther parent; and
‘‘(B) The procedures described in subparagraph
(A) must require the State—
‘‘(i) to develop and publish guidelines im-
plementing the safeguards described in sub-
paragraph (A); and
‘‘(ii) if the State provides for reasonable
fees for the access referred to in subparagraph
(A), to establish such fees in accordance with
243
guidelines developed and published by the State
that set schedules for such fees.’’.
SEC. 455. NATIONAL REPORTING OF NEW HIRES AND CHILD
SUPPORT INFORMATION.
(a) FEDERAL IMPLEMENTATION OF SYSTEM.—
(1) IN GENERAL.—The Secretary of the Treas-
ury, in consultation with the Secretary of Labor,
shall establish a system of reporting of new employ-
ees by requiring employers to provide a copy of every
new employee’s W–4 form to the employment secu-
rity agency of the State in which the employment is
located.
(2) EXPANDED USE OF FORM.—The Secretary
of the Treasury shall modify the W–4 form to be
completed by a new employee to enable the employee
to indicate on the form—
(A) whether the employee owes child sup-
port, and if so—
(i) to whom the support is payable
and the amount of the support payable;
and
(ii) whether the support is to be paid
through wage withholding; and
(B) whether health care insurance is avail-
able to the new employee, and, if so, whether
244
the new employee has obtained such insurance
for the dependent children of the new employee.
(3) EMPLOYER WITHHOLDING OBLIGATION.—
(A) IN GENERAL.—Subtitle C of the Inter-
nal Revenue Code of 1986 (relating to employ-
ment taxes) is amended by inserting after chap-
ter 24 the following new chapter:
‘‘CHAPTER 24A—COLLECTION OF CHILD
SUPPORT OBLIGATIONS AT SOURCE
ON WAGES
‘‘Sec. 3411. Child support obligations collected at source.
‘‘SEC. 3411. CHILD SUPPORT OBLIGATIONS COLLECTED AT
SOURCE.
‘‘(a) REQUIREMENT OF WITHHOLDING.—Every em-
ployer making payment of wages shall deduct and with-
hold upon such wages a specified child support obligation
amount.
‘‘(b) SPECIFIED
CHILD
SUPPORT
OBLIGATION
AMOUNT.—For purposes of this chapter, the specified
child support obligation amount with respect to any em-
ployee shall be determined based on—
‘‘(1) information provided by the employee, or
(if an agency of the State in which the employer is
located notifies the employer that such information
245
is inaccurate) information provided by the agency;
and
‘‘(2) information contained in any wage with-
holding order received by the employer from any
State.
‘‘(c) LIABILITY FOR PAYMENT.—The employer shall
be liable for the payment of the specified child support
obligation amount to the payee identified by the employee.
‘‘(d) SPECIAL RULES.—For purposes of this chapter
(and so much of subtitle F as relates to this chapter), any
specified child support obligation amount shall be treated
as if it were a tax withheld under chapter 24 and rules
similar to the rules of such chapter shall apply.’’
(B) CLERICAL AMENDMENT.—The table of
chapters of subtitle C of the Internal Revenue
Code of 1986 is amended by inserting after the
item relating to chapter 24 the following new
item:
‘‘CHAPTER 24A. Child support obligations collected at source.’’
(4) WITHHELD CHILD SUPPORT OBLIGATIONS
REPORTED ON W–2 FORMS.—Subsection (a) of sec-
tion 6051 of the Internal Revenue Code of 1986 (re-
lating to receipts for employees) is amended by
striking ‘‘and’’ at the end of paragraph (8), by strik-
ing the period at the end of paragraph (9) and in-
246
serting ‘‘, and’’, and by inserting after paragraph
(9) the following new paragraph:
‘‘(10) the total amount of specified child sup-
port obligations withheld under section 3411.’’
(b) STATE IMPLEMENTATION OF SYSTEM.—Section
466(a) (42 U.S.C. 666(a)), as amended by section 454
of this Act, is amended by inserting after paragraph (13)
the following:
‘‘(14) Procedures under which the State shall—
‘‘(A) use the Parent Locator Service estab-
lished under section 453 to access information
in the national registry of child support orders
maintained pursuant to section 452(a)(12) with
respect to new employee, compare such infor-
mation with the information reported on W–4
forms of new employees, and identify child sup-
port obligations not reported on such forms;
‘‘(B) if child support information from the
W–4 form of a new employee agrees with infor-
mation with respect to the new employee in the
national registry of child support orders main-
tained pursuant to section 452(a)(12), notify
the individual owed the support (or the individ-
ual’s designee) of such information;
247
‘‘(C) notify an employer of any new em-
ployee who has not reported on the W–4 form
a child support obligation of the new employee,
using the wage withholding order developed
under section 452(a)(14);
‘‘(D) impose monetary penalties on—
‘‘(i) any individual who owes child
support and fails to report the obligation
to provide the support on a Federal income
tax W–4 form at time of employment;
‘‘(ii) any employer who fails to for-
ward a W–4 form for a new employee to
the State employment security agency
within 10 calendar days of the date of the
first payroll from which the new employee
is paid; and
‘‘(iii) any employer who fails to with-
hold from the pay of any new employee
who reports a child support obligation on
a W–4 form an amount equal to the sup-
port owed, or fails to pay to the individual
owed the obligation the amount so with-
held, within 10 calendar days of the date
of the payroll, using electronic funds trans-
248
fer, if possible, unless otherwise notified by
a State agency;
‘‘(E) provide the services described in this
paragraph to any individual owed child support
who applies for assistance under the State plan;
and
‘‘(F) on request of another State, broad-
cast over the Parent Locator Service to such
other State child support information from W–
4 forms that have been sent to the State em-
ployment security agency.’’.
SEC. 456. ACCESS TO LAW ENFORCEMENT RECORDS SYS-
TEMS.
(a) ACCESS
BY CHILD SUPPORT ENFORCEMENT
AGENCIES.—The head of the National Criminal Informa-
tion Center, the head of the National Law Enforcement
Telecommunications Network, and the head of any other
national or regional system for tracking individuals shall
each—
(1) allow Federal, State, and local child support
enforcement agencies access to the information of
the system for purposes of establishing paternity or
a child support obligation of an individual tracked
by the system, using appropriate safeguards to pre-
vent improper release of such information; and
249
(2) if an access code is required to gain such
access, provide the access code to each child support
enforcement agency that applies for the code.
(b) LOSS OF FEDERAL FUNDING.—A non-Federal
system for tracking individuals that fails to comply with
paragraphs (1) and (2) of subsection (a) shall not be eligi-
ble to receive Federal funding for the system.
SEC. 457. BROADCASTING OF WARRANTS ON STATE NET-
WORKS.
Section 466(a) (42 U.S.C. 666(a)), as amended by
section 455 of this Act, is amended by inserting after
paragraph (14) the following:
‘‘(15) Procedures under which the State—
‘‘(A) shall broadcast on any State or local
crime information system each failure-to-appear
warrant, capias, and bench warrant issued by a
State court in any proceeding related to child
support; and
‘‘(B) shall, in a criminal case, remit to any
individual to whom the defendant owes child
support any security posted by or on behalf of
the defendant and forfeited, to the extent of
any arrearage in the payment of the support.’’.
250
SEC. 458. CASE MONITORING.
Section 454(16)(E) (42 U.S.C. 654(16)(E)) is
amended by inserting ‘‘, not less frequently that once
every 3 years’’ before the semicolon.
SEC. 459. ACCESS TO FINANCIAL RECORDS.
Section 466(a) (42 U.S.C. 666(a)), as amended by
section 455 of this Act, is amended by inserting after
paragraph (15) the following:
‘‘(16) Procedures under which the State may
obtain access to financial records maintained with
respect to any person by any financial institution
doing business in the State, for the purpose of estab-
lishing or enforcing a child support obligation of the
person.’’.
PART E—ESTABLISHMENT
SEC. 461. INTERSTATE RECOGNITION OF CHILD SUPPORT
AND PARENTAGE ORDERS.
(a) IN GENERAL.—Chapter 115 of title 28, United
States Code, is amended by inserting after section 1738A
the following:
‘‘§ 1738B. Full faith and credit to child support and
parentage orders
‘‘(a) DEFINITIONS.—As used in this section:
‘‘(1) The term ‘child’ means any individual who
has not attained the age of 18 years, and any indi-
vidual who has attained the age of 18 years for
251
whom a child support order has been issued pursu-
ant to the laws of a State.
‘‘(2) The term ‘child support’ includes periodic
and lump-sum payments for current and past due
economic support, payments of premiums for health
insurance for children, payments for or provision of
child care, and payments for educational expenses.
‘‘(3) The term ‘child support order’ means a
judgment, decree or order of a court requiring the
payment of money, whether in periodic amounts or
lump sum, for the support of a child and includes
permanent and temporary orders, initial orders and
modifications, ongoing support and arrearages.
‘‘(4) The term ‘child’s State’ means, with re-
spect to a child, the State in which the child resides
with a parent or an individual acting as a parent.
‘‘(5) The term ‘contestant’ means an individual,
including a parent, who claims a right to receive
child support or is under an order to pay child sup-
port, and includes States and political subdivisions
to which support rights have been assigned.
‘‘(6) The term ‘court’ means a court, adminis-
trative process, or quasijudicial process of a State
that is authorized to—
‘‘(A) adjudicate parentage;
252
‘‘(B) establish the amount of support pay-
able by a contestant; or
‘‘(C) modify the amount of support pay-
able by a contestant.
‘‘(7) The term ‘home State’ means, with respect
to a child, the State in which, immediately preceding
the time involved, the child lived with his or her par-
ents, a parent, or an individual acting as parent, for
at least 6 consecutive months (including any periods
of temporary absence), and if the child has not at-
tained the age of 6 months, the State in which the
child lived from birth with any of such individuals.
‘‘(8) The term ‘individual acting as a parent’
means an individual, other than a parent, who has
physical custody of a child and who has either been
awarded custody by a court or claims a right to cus-
tody.
‘‘(9) The terms ‘modification’ and ‘modify’ refer
to a change in a child support order or an order ad-
judicating parentage that modifies, replaces, super-
sedes, or otherwise is made subsequent to such prior
order, whether or not made by the same court that
issued such prior order.
‘‘(10) The term ‘State’ means a State of the
United States, the District of Columbia, the Com-
253
monwealth of Puerto Rico, a territory or possession
of the United States, and Indian country as defined
in section 1151 of title 18, United States Code.
‘‘(b) FULL FAITH AND CREDIT.—The courts of each
State shall recognize and enforce according to its terms
a child support order or an order adjudicating parentage
against an individual over whom personal jurisdiction has
been exercised consistent with this section, and shall not
modify such an order except as provided in subsection (f).
‘‘(c) BASES OF JURISDICTION.—A court of a State
may exercise personal jurisdiction over a nonresident con-
testant if there is any basis consistent with the constitu-
tion of the State and the Constitution of the United States
for the exercise.
‘‘(d) CONTINUING
EXCLUSIVE
JURISDICTION.—A
court of a State which has issued a child support order
or an order adjudicating parentage consistent with this
section shall have continuing, exclusive jurisdiction of the
order for so long as the State remains the child’s State
or the residence of any contestant, unless another State,
acting in accordance with subsection (f), has modified the
order.
‘‘(e) NOTICE AND HEARING.—Before a court of a
State makes a child support order or adjudicates parent-
254
age, reasonable notice and opportunity to be heard shall
be given to the contestants.
‘‘(f) MODIFICATION.—A court of a State may modify
a child support order or an order adjudicating parentage
issued by a court of another State if—
‘‘(1) each contestant has filed written consent
for the court of the State to modify the order and
assume continuing, exclusive jurisdiction of the
order; and
‘‘(2) the court of the State otherwise has juris-
diction to issue such an order.
‘‘(g) ENFORCEMENT OF PRIOR ORDERS.—A court of
a State which no longer has continuing, exclusive jurisdic-
tion of a child support order or an order adjudicating par-
entage may enforce the order with respect to unsatisfied
obligations which accrued before the date the order is
modified in accordance with subsection (f).
‘‘(h) WITHHOLDING EXERCISE OF JURISDICTION.—
A court of a State shall not exercise jurisdiction in any
proceeding for a child support order or an adjudication
of parentage commenced during the pendency of a pro-
ceeding in a court of another State when the court of the
other State is exercising jurisdiction consistent with this
section unless—
255
‘‘(1) the proceeding was filed in the State be-
fore the expiration of time allowed in the other State
for filing a responsive pleading challenging the exer-
cise of jurisdiction by the other State;
‘‘(2) the contesting party timely challenges the
exercise of jurisdiction by the other State; and
‘‘(3) if applicable, the court is in the home
State of the child.
‘‘(i) CHOICE OF LAW.—(1) Except as provided in
paragraphs (2) and (3), the forum State’s law shall apply
in a proceeding to establish, modify, or enforce a child
support order or an order adjudicating parentage.
‘‘(2) The courts of a State shall apply the law of the
State that issued a child support order or an order adju-
dicating parentage in interpreting such an order.
‘‘(3) In an action to enforce a child support order
or an order adjudicating parentage, the statute of limita-
tions under the laws of the forum State or the issuing
State, whichever is longer, shall apply.’’.
(b) CLERICAL AMENDMENT.—The chapter analysis
for such chapter is amended by inserting after the item
relating to section 1738A the following:
‘‘1738B. Full faith and credit to child support and parentage orders.’’.
256
SEC. 462. SERVICE OF PROCESS ON FEDERAL EMPLOYEES
AND MEMBERS OF THE ARMED SERVICES IN
CONNECTION WITH PROCEEDINGS RELATING
TO CHILD SUPPORT AND PARENTAGE OBLI-
GATIONS.
Part D of title IV (42 U.S.C. 651–670) is amended
by inserting after section 460 the following:
‘‘SEC. 460A. SERVICE OF PROCESS ON FEDERAL EMPLOY-
EES AND MEMBERS OF THE ARMED SERV-
ICES IN CONNECTION WITH PROCEEDINGS
RELATING TO CHILD SUPPORT AND PARENT-
AGE OBLIGATIONS.
‘‘(a) IN GENERAL.—The head of each Government
agency shall, in accordance with applicable regulations
under subsection (b), designate an agent for receipt of
service of process, for any Federal employee or member
of the Armed Forces serving in or under such agency, in
connection with an action, brought in a court of competent
jurisdiction within any State, territory, or possession of
the United States, for obtaining a child support order or
for establishing parentage.
‘‘(b) REGULATIONS.—Regulations governing the im-
plementation of this section with respect to the executive,
legislative, or judicial branch of the Government shall be
promulgated by the authority or authorities responsible
257
for promulgating regulations under section 461 with re-
spect to the branch of Government involved.
‘‘(c) INTERPRETIVE RULE.—This section shall not be
construed to prevent any otherwise eligible individual from
requesting or being granted a stay or continuance in any
judicial proceeding, including under the Soldiers’ and Sail-
ors’ Civil Relief Act of 1940.
‘‘(d) GOVERNMENT AGENCY DEFINED.—For pur-
poses of this section, the term ‘Government agency’ means
each agency of the Federal Government, including—
‘‘(1) an Executive agency (as defined by section
105 of title 5, United States Code);
‘‘(2) the Department of Defense, to the extent
that any Federal employee serving in or under that
agency or any member of the armed services is in-
volved;
‘‘(3) the United States Postal Service and the
Postal Rate Commission;
‘‘(4) the government of the District of Colum-
bia;
‘‘(5) an agency within the legislative or judicial
branch of the Government; and
‘‘(6) an advisory committee to which the Fed-
eral Advisory Committee Act applies.’’.
258
SEC. 463. PRESUMED ADDRESS OF OBLIGOR AND OBLIGEE.
Section 466(a) (42 U.S.C. 666(a)), as amended by
section 457 of this Act, is amended by inserting after
paragraph (16) the following:
‘‘(17) Procedures under which the State shall—
‘‘(A) require the court or administrative
agency with authority to issue the final order in
a child support or parentage case to require
each party subject to the order to file with the
court or administrative agency, on or before the
date the order is issued—
‘‘(i) the party’s residential address or
addresses;
‘‘(ii) the party’s mailing address or
addresses;
‘‘(iii) the party’s home telephone num-
ber or numbers;
‘‘(iv) the party’s driver’s license num-
ber;
‘‘(v) the party’s social security ac-
count number;
‘‘(vi) the name of each employer of
the party;
‘‘(vii) the addresses of each place of
employment of the party; and
259
‘‘(viii) the party’s work telephone
number or numbers;
‘‘(B) require the court or administrative
agency in any action related to child support to
presume, for the purpose of providing sufficient
notice (other than the initial notice in an action
to establish parentage or a child support order),
that the noncustodial parent resides at the last
residential address given by the noncustodial
parent to the court or agency, or a more recent
address provided in good faith by the parent
owed the support obligation; and
‘‘(C) ensure that information concerning
the location of a custodial parent or a child of
the custodial parent is not released to a
noncustodial parent if a court order has been
issued against the noncustodial parent for the
physical protection of the custodial parent or
the child.’’.
SEC. 464. NOTICE TO CUSTODIAL PARENTS.
Section 454 (42 U.S.C. 654) is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(23);
(2) by striking the period at the end of para-
graph (24) and inserting ‘‘; and’’; and
260
(3) by inserting after paragraph (24) the fol-
lowing:
‘‘(25) provide that the agency administering the
plan—
‘‘(A) shall make reasonable attempts to
provide timely notice to any individual owed
child support of any proceeding to establish,
modify, or enforce the support obligation;
‘‘(B) shall not delay any such proceeding
solely due to the failure of the custodial parent
to appear; and
‘‘(C) shall, within 14 days after the date
an order that establishes, modifies, or enforces
a child support obligation is issued, provide the
custodial parent of the child with a copy of the
order.’’.
SEC. 465. UNIFORM STATE RULES IN PARENTAGE AND
CHILD SUPPORT CASES.
Section 466(a) (42 U.S.C. 666(a)), as amended by
section 463 of this Act, is amended by inserting after
paragraph (17) the following:
‘‘(18) Procedures under which, in the State—
‘‘(A) a party may, in a single cause of ac-
tion, seek judicial determination of the parent-
261
age of a child and judicial establishment of a
child support order with respect to the child;
‘‘(B) the venue for determination of par-
entage of a child shall be in the county of resi-
dence of the child;
‘‘(C) a court or agency that issues a par-
entage or child support order shall have con-
tinuing and exclusive jurisdiction over the order
until the court or agency transfers such juris-
diction to the appropriate court or agency in
the county of residence of the child, or the par-
ties consent to be bound by another court or
agency in the State that has subject matter ju-
risdiction;
‘‘(D) proceedings to enforce or modify of a
child support order may be transferred to the
city, county, or district in which the child re-
sides without any requirement that the order be
filed or the defendant be served again;
‘‘(E) a court or agency that hears a par-
entage or child support cases shall have state-
wide jurisdiction over the parties to the case,
and the parentage and child support orders is-
sued by the court or agency shall have state-
wide effect for enforcement purposes; and
262
‘‘(F) denial of visitation rights may not be
used as a defense in an action to enforce an ob-
ligation to provide child support and the failure
to provide child support may not be used as a
defense in an action to enforce visitation
rights.’’.
SEC. 466. FAIR CREDIT REPORTING ACT AMENDMENT.
Section 604 of the Consumer Credit Protection Act
(15 U.S.C. 1681b) is amended by adding at the end the
following:
‘‘(4) To a State agency administering a State plan
under section 454 of the Social Security Act, for use to
establish or modify a child support award.’’.
SEC. 467. NATIONAL CHILD SUPPORT GUIDELINES COMMIS-
SION.
(a) ESTABLISHMENT.—There is hereby established a
commission to be known as the ‘‘National Child Support
Guidelines Commission’’ (in this section referred to as the
‘‘Commission’’).
(b) GENERAL DUTIES.—The Commission shall con-
vene a conference to study the desirability of a national
child support guideline, and if such guideline is advisable,
the Commission shall develop for congressional consider-
ation a national child support guideline that is based on
the conference’s study of various guideline models, the de-
263
ficiencies of such models, and any needed improvements,
taking into consideration differences in the cost of living
in different areas of the United States. In developing such
guideline, the Commission shall consider indexing the
guideline to the cost of living, specifying minimum (rather
than maximum) amounts, or using other methodologies to
reflect such differences.
(c) MEMBERSHIP.—
(1) NUMBER; APPOINTMENT.—
(A) IN GENERAL.—The Commission shall
be composed of 9 individuals appointed jointly
by the Secretary of Health and Human Services
and the Congress, not later than January 15,
1995.
(B) 
QUALIFICATIONS
OF
MEMBERS.—
Members of the Commission shall be appointed
from among those who are able to provide ex-
pertise and experience in the evaluation and de-
velopment of child support guidelines.
(2) TERMS OF OFFICE.—Each member shall be
appointed for a term of 2 years. A vacancy in the
Commission shall be filled in the manner in which
the original appointment was made.
(d) COMMISSION POWERS, COMPENSATION, ACCESS
TO INFORMATION, AND SUPERVISION.—The first sentence
264
of subparagraph (C), the first and third sentences of sub-
paragraph (D), subparagraph (F) (except with respect to
the conduct of medical studies), clauses (ii) and (iii) of
subparagraph (G), and subparagraph (H) of section
1886(e)(6) of the Social Security Act shall apply to the
Commission in the same manner in which such provisions
apply to the Prospective Payment Assessment Commis-
sion.
(e) REPORT.—Not later than 2 years after the ap-
pointment of members, the Commission shall submit to
the President, the Committee on Ways and Means of the
House of Representatives, and the Committee on Finance
of the Senate, a report on the results of the study de-
scribed in subsection (b) and the final assessment by the
Commission of issues relating to a national child support
guideline.
(f) TERMINATION.—The Commission shall terminate
upon the submission of the report described in subsection
(e).
SEC. 468. GUIDELINE PRINCIPLES.
Section 467 (42 U.S.C. 667) is amended by adding
at the end the following:
‘‘(d) The guidelines established pursuant to sub-
section (a) shall be based on, and applied in accordance
with, the following principles:
265
‘‘(1) A change in the child support amount re-
sulting from the application of the guidelines since
the entry of the last support order is sufficient rea-
son for modification of a child support obligation
without the necessity of showing any other change in
circumstance. The State may set a minimum time-
frame between reviews of modifications based on the
guidelines, absent other changes in circumstances.
‘‘(2) Not later than 1995, each State shall es-
tablish automatic child support order review proce-
dures based on the automated calculation of the
amount of support to which a child is entitled, to en-
sure that the amount is sufficient to meet the needs
of the child, and takes into account any changes in
the income of the parents of the child.
‘‘(3) The State shall advise any custodial parent
who is not receiving aid under a State plan approved
under part A of the review of a child support award
made with respect to a child of the custodial parent,
of any proposed modification in the amount of the
award based on the review, and of the right of the
custodial parent to decline to seek the modification.
‘‘(e) The guidelines established pursuant to sub-
section (a) may consider the treatment of the following:
266
‘‘(1) Work-related or job-training-related child
care expenses of either parent for the care of chil-
dren of either parent.
‘‘(2) Health insurance and related uninsured
health care expenses, and school expenses incurred
on behalf of the child for whom the child support
order is sought.
‘‘(3) Multiple family child raising obligations
other than those for the child for whom the child
support order is sought.
‘‘(f) Each State must publish the guidelines estab-
lished pursuant to subsection (a).’’.
SEC. 469. DURATION OF SUPPORT.
(a) IN
GENERAL.—Section 466(a) (42 U.S.C.
666(a)), as amended by section 466 of this Act, is amend-
ed by inserting after paragraph (17) the following:
‘‘(18) Procedures under which the State—
‘‘(A) imposes on 1 or both parents of a
child an obligation to continue to provide sup-
port for the child until not earlier than the later
of the date the child attains 18 years of age or
the date the child is graduated from or is no
longer enrolled in secondary school or its equiv-
alent, unless the child is married or is otherwise
267
emancipated by a court of competent jurisdic-
tion;
‘‘(B) provides that courts with jurisdiction
over child support cases may, in accordance
with criteria established by the State, order—
‘‘(i) child support, payable to an adult
child, at least up to the age of 22 years for
a child enrolled in an accredited post-
secondary or vocational school or college
who is a student in good standing; and
‘‘(ii) either or both parents to pay for
postsecondary school support based on
each parent’s financial ability to pay;
‘‘(C) provides for child support to continue
beyond the child’s minority if the child is dis-
abled, unable to be self-supportive, and the dis-
ability arose during the child’s minority; and
‘‘(D) provides that courts should consider
the effect of child support received on means-
tested governmental benefits and whether to
credit governmental benefits against a support
award amount.’’.
(b) SENSE OF THE CONGRESS.—It is the sense of
the Congress that, if children receive child support while
obtaining postsecondary education, they will attain higher
268
levels of education affording them a greater chance to
break the welfare cycle.
SEC. 470. EVIDENCE.
(a) NATIONAL SUBPOENA DUCES TECUM.—Section
452(a) (42 U.S.C. 652(a)), as amended by sections 471(a)
and 452(c) of this Act, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(11);
(2) by striking the period at the end of para-
graph (12) and inserting a semicolon; and
(3) by inserting after paragraph (12) the fol-
lowing:
‘‘(13) develop and distribute a national sub-
poena duces tecum, which shall be designed to be
used by any State or local child support agency or
child support litigant to reach income information on
the prior 12 months of income or on accumulated in-
come to date of any recipient of income;
‘‘(14) establish a simplified certification process
and admissibility procedure for out-of-State docu-
ments in child support or parentage cases.’’.
(b) STATE
LAWS.—Section 466(a) (42 U.S.C.
666(a)), as amended by section 469 of this Act, is amend-
ed by inserting after paragraph (19) the following:
‘‘(20) Procedures under which—
269
‘‘(A) in a child support case in the State—
‘‘(i) the subpoena duces tecum devel-
oped pursuant to section 452(a)(13) shall
be used, if necessary, to reach income in-
formation on the prior 12 months of in-
come or on accumulated income to date of
any individual;
‘‘(ii) an entity that is a source of in-
come for the individual may comply with
such a subpoena by timely mailing the in-
formation described in the subpoena to an
address supplied in the subpoena;
‘‘(iii) the State shall permit such a
subpoena to be enforced against such an
entity in the State, with the entity bearing
the burden of justifying any failure to com-
ply with the subpoena; and
‘‘(iv) information supplied by an en-
tity in response to such a subpoena shall
be admissible to prove the truth of the in-
formation;
‘‘(B) a certified copy of an out-of-State
order, decree, or judgment related to child sup-
port or parentage shall be admitted once of-