[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3738 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 3738

To promote equitable pay practices and eliminate discrimination within 
 the civil service; to provide for more equitable pay practices within 
 the legislative branch; to require the executive branch to gather and 
    disseminate information regarding, and to promote techniques to 
  eliminate, discriminatory wage-setting practices and discriminatory 
wage disparities which are based on sex, race, or national origin; and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 26, 1994

 Mr. Andrews of Texas (for himself, Ms. Norton, Mrs. Morella, and Mrs. 
Schroeder) introduced the following bill; which was referred jointly to 
the Committees on Post Office and Civil Service, House Administration, 
                Ways and Means, and Education and Labor

_______________________________________________________________________

                                 A BILL


 
To promote equitable pay practices and eliminate discrimination within 
 the civil service; to provide for more equitable pay practices within 
 the legislative branch; to require the executive branch to gather and 
    disseminate information regarding, and to promote techniques to 
  eliminate, discriminatory wage-setting practices and discriminatory 
wage disparities which are based on sex, race, or national origin; and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Pay Equity Employment Reform Act of 
1994''.

  TITLE I--PROVISIONS RELATING TO PAY AND PERSONNEL PRACTICES IN THE 
                            EXECUTIVE BRANCH

SEC. 101. STATEMENT OF PURPOSE.

    (a) Purpose.--The purpose of this title is to determine--
            (1) whether the Government's position-classification system 
        under chapter 51 of title 5, United States Code, and 
        prevailing-rate system under subchapter IV of chapter 53 of 
        such title 5, are designed and administered in a manner 
        consistent with the general policy (as expressed in title VII 
        of the Civil Rights Act of 1964 and section 6(d) of the Fair 
        Labor Standards Act of 1938) that sex, race, and national 
        origin should not be among the factors considered in 
        determining the rate of basic pay for any employee or position; 
        and
            (2) whether the Government's appointment and promotion 
        practices with respect to the respective systems referred to in 
        paragraph (1) are generally consistent with applicable 
        provisions of law prohibiting discrimination on the basis of 
        sex, race, or national origin.
    (b) Linkage With General Schedule.--For purposes of this title, 
subchapter III of chapter 53 of title 5, United States Code, shall be 
considered to be part of the position-classification system under 
chapter 51 of such title 5.

SEC. 102. STUDY REQUIREMENTS.

    (a) Methodology.--
            (1) In general.--In order to carry out the purpose set 
        forth in section 101(a)(1), the appropriate officials (as 
        defined in section 107(4)) shall provide, by contract with the 
        consultant selected under section 103(b), for the performance 
        of a study under which objective, nondiscriminatory job-
        evaluation techniques shall be applied with respect to a 
        representative sample of occupations, giving particular 
        attention to occupations in which members of any racial or 
        ethnic group or either sex are disproportionately represented.
            (2) Specific comparisons.--In performing the study, 
        comparisons shall be made--
                    (A) within each system and between the respective 
                systems referred to in section 101(a)(1); and
                    (B) on an intraagency and interagency basis.
    (b) Separate Study.--Under the contract, the consultant shall be 
required to perform a separate study to carry out the purpose set forth 
in section 101(a)(2).
    (c) Views To Be Considered.--In carrying out its responsibilities 
under this title, the consultant shall provide for meetings with, and 
give thorough consideration to the views and recommendations of--
            (1) labor organizations representing individuals in 
        Government service generally;
            (2) employee organizations which--
                    (A) have as a purpose promoting the interests of 
                women in Government service; and
                    (B) are composed primarily of women holding 
                positions covered by either of the systems referred to 
                in section 101(a)(1); and
            (3) employee organizations which--
                    (A) have as a purpose promoting the civil rights of 
                individuals in Government service; and
                    (B) are composed primarily of minority group 
                members holding positions covered by either of the 
                systems referred to in section 101(a)(1).

SEC. 103. SELECTION OF A CONSULTANT.

    (a) List of Qualified Consultants.--The Comptroller General of the 
United States shall prepare and, as soon as possible, submit to the 
appropriate officials a list of at least 5 consultants which, based on 
their impartiality, expertise, and experience, the Comptroller General 
considers appropriate to perform the studies required by this title. 
Selections under this subsection shall be made in accordance with the 
laws and regulations governing procurements by agencies generally.
    (b) Final Selection.--The selection of a consultant to perform the 
studies required by this title shall be made by the appropriate 
officials from among the consultants included on the list under 
subsection (a).

SEC. 104. REPORTING REQUIREMENTS.

    (a) Deadline.--The appropriate officials shall, not later than 12 
months after the effective date of this title, submit to the President 
and each House of Congress--
            (1) the consultant's report, as described in subsection 
        (b); and
            (2) such officials' comments with respect to the report.
    (b) Matters To Be Addressed in the Consultant's Report.--The 
consultant's report shall include--
            (1) a list of the occupations between or among which pay 
        disparities were found to exist, even though the work performed 
        in those respective occupations involved skills, effort, 
        responsibilities, and qualification requirements which, while 
        not identical, were equivalent when taken in their totality; 
        and
            (2) the extent to which any pay disparities identified 
        under paragraph (1)--
                    (A) can be accounted for by the application of 
                objective, nondiscriminatory job-evaluation techniques; 
                or
                    (B) cannot be accounted for by the application of 
                objective, nondiscriminatory job-evaluation techniques.
The report shall also include the consultant's findings and conclusions 
with respect to the matter described in section 101(a)(2).
    (c) Matters To Be Addressed In Comments.--
            (1) In general.--Included as part of the comments referred 
        to in subsection (a)(2) shall be--
                    (A) a statement by the appropriate officials as to 
                whether any disparity described in subsection (b)(2)(B) 
                may be inconsistent with the general policy referred to 
                in section 101(a)(1); and
                    (B) subject to paragraph (3), recommendations for 
                any corrective action or other measures which such 
                officials consider appropriate with respect to any 
                disparities identified under subparagraph (A).
            (2) Implementation of measures.--The appropriate officials 
        shall identify which, if any, of the recommendations under 
        paragraph (1)(B) may be carried out pursuant to any authority 
        available under existing law, and shall make recommendations 
        for any legislation or other authority needed with respect to 
        any of the other recommendations.
            (3) Limitation.--The appropriate officials may not make any 
        recommendation under this title which would involve a reduction 
        in any grade or rate of basic pay.
    (d) Dissemination Within Legislative Branch.--The appropriate 
officials shall furnish a copy of the consultant's report, together 
with such officials' comments, to each appointing authority in the 
legislative branch of the Government.
    (e) Continuing Oversight.--The Office of Personnel Management 
shall, not later than 6 months after the requirements of subsection (a) 
have been met, and at least annually thereafter, submit to the 
President and each House of Congress (including the Office of Senate 
Fair Employment Practices and the Office of Fair Employment Practices 
of the House of Representatives) a report which--
            (1) shall describe any progress made in implementing the 
        recommendations described in subsection (c)(1)(B);
            (2) shall include information relating to levels of pay for 
        male and female employees, respectively, within the same 
        occupation in the executive branch; and
            (3) may include any other information or recommendations 
        which the Office considers appropriate.

SEC. 105. RULE OF CONSTRUCTION.

    Nothing in this title shall be considered to limit any of the 
rights or remedies provided under the Civil Rights Act of 1964, section 
6(d) of the Fair Labor Standards Act of 1938, or any other provision of 
law relating to discrimination on the basis of race, color, religion, 
sex, national origin, handicap, or age.

SEC. 106. FUNDING.

    Sums appropriated to the Office of Personnel Management for general 
operating expenses shall be available to carry out this title.

SEC. 107. DEFINITIONS.

    For the purpose of this title--
            (1) the term ``occupation'' means any grouping of positions 
        within an agency, as determined under chapter 51 of title 5, 
        United States Code, or subchapter IV of chapter 53 of such 
        title;
            (2) the term ``agency'' means an executive agency, as 
        defined by section 105 of title 5, United States Code (other 
        than the General Accounting Office);
            (3) the term ``consultant'' includes an organization which 
        provides consultant services;
            (4) the term ``appropriate officials'' means the Director 
        of the Office of Personnel Management, the Director of the 
        Office of Management and Budget, and the Secretary of Labor;
            (5) the term ``labor organization'' has the meaning given 
        that term by section 7103(a)(4) of title 5, United States 
        Codes; and
            (6) the term ``Government'' means the Government of the 
        United States.

SEC. 108. EFFECTIVE DATE.

    This title shall take effect 30 days after the date of the 
enactment of this Act.

  TITLE II--PROVISIONS RELATING TO PAY AND PERSONNEL PRACTICES IN THE 
                           LEGISLATIVE BRANCH

SEC. 201. RESPONSIBILITIES OF THE GENERAL ACCOUNTING OFFICE.

    The General Accounting Office shall--
            (1) with respect to positions in the legislative branch to 
        which title VII of the Civil Rights Act of 1964 and section 
        6(d) of the Fair Labor Standards Act of 1938 apply, perform 
        studies similar to those required under title I; and
            (2) develop a comprehensive plan under which the general 
        principles set forth in section 101(a) may be made applicable 
        to positions in the legislative branch other than those 
        described in paragraph (1).

SEC. 202. REPORTING REQUIREMENT.

    The General Accounting Office shall submit a written report to the 
President and each House of Congress not later than 12 months after the 
date of the enactment of this Act. Included in such report shall be--
            (1) the findings and conclusions of its studies under 
        section 201(1), together with any recommendations which the 
        General Accounting Office considers appropriate; and
            (2) the details of its comprehensive plan, as required 
        under section 201(2).

  TITLE III--DISCRIMINATORY WAGE-SETTING PRACTICES AND DISCRIMINATORY 
                            WAGE DISPARITIES

                    Subtitle A--Technical Assistance

SEC. 301. STATEMENT OF PURPOSE.

    Recognizing that the identification and elimination of 
discriminatory wage-setting practices and discriminatory wage 
disparities are in the public interest, the purpose of this subtitle is 
to help eliminate such practices and disparities by--
            (1) providing for the development and utilization of 
        techniques that will promote the establishment of wage rates 
        based on the work performed and other appropriate factors, 
        rather than the sex, race, or national origin of the employee; 
        and
            (2) providing for the public dissemination of information 
        relating to the techniques described in paragraph (1), thereby 
        encouraging and stimulating public and private employers, 
        through the use of such techniques, to correct wage-setting 
        practices and eliminate wage disparities, to the extent that 
        they are based on the sex, race, or national origin of the 
        employee, rather than the work performed and other appropriate 
        factors.

SEC. 302. PROGRAM SPECIFICATIONS.

    In order to carry out the purpose of this subtitle, the Secretary 
of Labor shall develop and carry out a continuing program under which, 
among other things, the Secretary shall--
            (1) develop and implement a program for the dissemination 
        of information on efforts being made in the private and public 
        sectors to reduce or eliminate wage disparities, to the extent 
        that they are based on the sex, race, or national origin of the 
        employee, rather than the work performed and other appropriate 
        factors;
            (2) undertake and promote research into the development of 
        techniques to reduce or eliminate wage disparities, to the 
        extent that they are based on the sex, race, or national origin 
        of the employee, rather than the work performed and other 
        appropriate factors; and
            (3) develop and implement a program for providing 
        appropriate technical assistance to any public or private 
        entity requesting such assistance to correct wage-setting 
        practices or to eliminate wage disparities, to the extent that 
        they are based on the sex, race, or national origin of the 
        employee, rather than the work performed and other appropriate 
        factors.

SEC. 303. DEFINITION.

    For the purpose of this subtitle, the term ``other appropriate 
factors'' includes factors such as--
            (1) the skill, effort, responsibilities, and qualification 
        requirements for the work involved, taken in their totality;
            (2) geographic location and working conditions; and
            (3) seniority, merit, productivity, education, and work 
        experience.

 Subtitle B--Wage Discrimination Based on Sex, Race, or National Origin

SEC. 351. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to the Equal Employment 
Opportunity Commission $100,000,000 for each of the fiscal years 1995, 
1996, 1997, 1998, and 1999, to be expended--
            (1) to enforce the provisions of those laws administered by 
        the Commission that relate to wage discrimination based on sex, 
        race, or national origin; and
            (2) to carry out activities to increase public awareness of 
        the right to be free from such wage discrimination that 
        violates such laws.

           Subtitle C--Compliance With Executive Order 11246

    The Secretary of Labor shall develop and implement standard 
procedures to review compliance with Executive Order 11246 in every 
contract audited through the contract compliance program of the 
Department of Labor.

          Subtitle D--Amendments To Achieve Budget Neutrality

SEC. 381. ESTABLISHMENT OF STANDARD PAYMENT RATES FOR HOME HEALTH 
              SERVICES.

    (a) In General.--
            (1) Standard payment rates described.--Title XVIII of the 
        Social Security Act is amended by inserting after section 1889 
        the following new section:

           ``standard payment rates for home health services

    ``Sec. 1890. (a) In General.--Notwithstanding section 1814(b)(1), 
section 1833(a)(2)(A), or any other provision of this title, the amount 
of payment made under this title for home health services furnished by 
a home health agency on or after January 1, 1994, shall equal the 
adjusted standard per visit payment rate determined under subsection 
(b) for the category of home health services involved (as defined in 
subsection (d)(1)) for the fiscal year during which the services are 
furnished.
    ``(b) Determination of Adjusted Standard Per Visit Payment Rates.--
            ``(1) In general.--The adjusted standard per visit payment 
        rate for home health services furnished in a fiscal year is 
        equal to--
                    ``(A) the base per visit rate for the category of 
                home health services involved for the fiscal year 
                determined under paragraph (2), adjusted for area wage 
                differences under paragraph (3); and
                    ``(B) in the case of home health services in the 
                category of services described in subsection (d)(1)(A) 
                that involve the furnishing of non-routine medical 
                supplies directly identifiable as services for an 
                individual patient (but not including durable medical 
                equipment, prosthetic devices, or orthotics and 
                prosthetics), the amount described in subparagraph (A) 
                increased by the medical supply add-on described in 
                paragraph (4).
            ``(2) Base per visit rate.--
                    ``(A) Initial rate.--The base per visit rate for a 
                category of home health services furnished by a home 
                health agency in fiscal year 1994 shall be an amount 
                equal to 93 percent of the mean of the labor-related 
                and nonlabor costs for that category of services 
                utilized for purposes of computing limits under section 
                1861(v)(1)(L) for cost reporting periods beginning on 
                or after July 1, 1993, and before July 1, 1994, 
                increased by the cost reporting period adjustment 
                factor for January 1994 (as specified in the regulation 
                setting forth such limits).
                    ``(B) Subsequent years.--The base per visit rate 
                for a category of home health services furnished by a 
                home health agency in a fiscal year beginning on or 
                after October 1, 1994 is the base per visit rate for 
                that category of services for the preceding fiscal year 
                increased by the home health market basket percentage 
                increase (as defined in subsection (d)(2)) for such 
                fiscal year.
            ``(3) Adjusting for area wage levels.--The Secretary shall 
        adjust the base per visit rate determined under paragraph (2) 
        for home health services furnished by a home health agency for 
        a fiscal year by utilizing the area wage index applicable 
        during the fiscal year under section 1886(d)(3)(E) to hospitals 
        located in the geographic area in which the agency is located 
        (determined without regard to whether such hospitals have been 
        reclassified to a new geographic area pursuant to section 
        1886(d)(8)(B), a decision of the Medicare Geographic 
        Classification Review Board or the Secretary under section 
        1886(d)(10)).
            ``(4) Medical supply add-on described.--The medical supply 
        add-on described in this paragraph is equal to--
                    ``(A) for fiscal year 1994, the estimated national 
                average cost of non-routine medical supplies directly 
                identifiable as services for an individual patient (but 
                not including durable medical equipment, prosthetic 
                devices, or orthotics and prosthetics) associated with 
                a home health visit, as estimated by the Secretary 
                based upon the best data available and updated through 
                fiscal year 1994 by the Secretary's estimate of the 
                increase in the medical equipment and supplies 
                component of the supplies and rental consumer price 
                index for all urban consumers (U.S. city average), from 
                the end of the period from which the data was drawn 
                through fiscal year 1994; and
                    ``(B) for a subsequent fiscal year, the add-on for 
                the preceding fiscal year increased by the Secretary's 
                estimate of the percentage increase in the index 
                referred to in subparagraph (A) for the fiscal year 
                involved.
    ``(c) Cost Reporting Requirements.--
            ``(1) In general.-- Not later than January 1, 1994, the 
        Secretary shall implement a system under which a random sample 
        of home health agencies shall submit cost reports. Cost reports 
        submitted under such system shall be used solely for purposes 
        of comparing the costs of home health agencies with the 
        adjusted standard payment rates established under subsection 
        (b).
            ``(2) System described.--The system developed under 
        paragraph (1) shall--
                    ``(A) utilize a different random sample of agencies 
                for each 12-month period,
                    ``(B) include in such random sample 5 percent of 
                all home health agencies, and
                    ``(C) to the greatest extent practicable and 
                consistent with the preceding provisions of this 
                paragraph, avoid requiring a home health agency to 
                submit a cost report pursuant to paragraph (1) more 
                than once in any 5-year period.
            ``(3) Reports of additional agencies.--Any home health 
        agency that is not required to submit a cost report pursuant to 
        paragraph (1) for a cost reporting period may be required by 
        the Secretary to submit a simplified cost report for such 
        period, in accordance with regulations issued by the Secretary. 
        The Secretary may use such reports solely for the purposes 
        described in such paragraph.
    ``(d) Definitions.--For purposes of this section:
            ``(1) The term `category of home health services' means any 
        one of the following home health services:
                    ``(A) Skilled nursing services.
                    ``(B) Physical therapy services.
                    ``(C) Occupational therapy services.
                    ``(D) Speech therapy services.
                    ``(E) Medical social services.
                    ``(F) Home health aide services.
            ``(2) The term `home health market basket percentage 
        increase' means, with respect to a fiscal year, the percentage 
        by which the cost of the mix of goods and services comprising 
        home health services will exceed the cost of such mix of goods 
        and services for the preceding fiscal year, as estimated by the 
        Secretary before the fiscal year begins.''.
            (2) Exceptions and adjustments for costs significantly in 
        excess of payments.--The Secretary of Health and Human Services 
        shall provide by regulation for such exceptions and adjustments 
        to the payment amounts established for home health services 
        under section 1890(a) of the Social Security Act (as added by 
        paragraph (1)) as the Secretary deems appropriate for services 
        for which a home health agency incurs costs that significantly 
        exceed such payment amounts for reasons beyond the agency's 
        control, subject to any limits the Secretary may establish to 
        ensure that such an exception or adjustment does not result in 
        the reimbursement of any costs that the Secretary does not find 
        to be reasonable.
    (b) Conforming Amendments.--
            (1) Amendments relating to part a.--(A) Section 1814(b) of 
        such Act (42 U.S.C. 1395f(b)) is amended in the matter 
        preceding paragraph (1) by striking ``1813 and 1886'' and 
        inserting ``1813, 1886, and 1890''.
            (B) Section 1813(a)(5) of such Act, as added by section 
        604(a)(1), is amended by striking ``the average of all the per 
        visit costs'' and all that follows and inserting ``the payment 
        amount determined for such services under section 1890(a).''.
            (2) Amendments relating to part b.--(A) Section 
        1832(a)(2)(F) of such Act, as added by section 604(a)(2), is 
        amended--
                    (i) by amending clause (i) to read as follows:
                            ``(i) the payment amount determined for 
                        such service under section 1890(a), less the 
                        amount a provider may charge as described in 
                        clause (ii) of section 1866(a)(2)(A);''; and
                    (ii) in the matter following clause (iii), by 
                striking ``the average of all the per visit costs'' and 
                all that follows and inserting ``the payment amount 
                determined for such services under section 1890(a).''.
            (B) Section 1861(v)(1)(L) of such Act (42 U.S.C. 
        1395x(v)(1)(L)) is amended by adding at the end the following 
        new clause:
    ``(iv) Clauses (i), (ii), and (iii) shall not apply to any services 
furnished on or after January 1, 1994.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to services furnished during cost reporting periods beginning on 
or after January 1, 1994.

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HR 3738 IH----2