[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3506 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 3506

     To amend the Service Contract Act of 1965 to provide for the 
 responsibility in certain cases of a parent corporation of a Federal 
contractor to provide health care benefits to retired employees of the 
      contractor if the contractor fails to provide such benefits.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 18, 1999

Mr. Weldon of Florida introduced the following bill; which was referred 
            to the Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
     To amend the Service Contract Act of 1965 to provide for the 
 responsibility in certain cases of a parent corporation of a Federal 
contractor to provide health care benefits to retired employees of the 
      contractor if the contractor fails to provide such benefits.

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

SECTION 1. RESPONSIBILITY OF PARENT CORPORATION TO PROVIDE HEALTH CARE 
              COVERAGE TO RETIREES OF SUBSIDIARY CORPORATION.

    (a) In General.--Section 2(a) of the Service Contract Act of 1965 
(Public Law 89-286; 41 U.S.C. 351(a)) is amended by adding at the end 
the following new paragraph:
            ``(6) A provision specifying that if the contract is 
        terminated, if the contract or a collective bargaining 
        agreement required that the contractor provide health care to 
        contractor employees who performed work to carry out the 
        contract and who retired before the contract was terminated, a 
        parent corporation of the contractor shall be responsible for 
        the provision of such health care coverage to such retired 
        employees if the contractor fails to provide such coverage.''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply with respect to contracts for which bids are solicited after the 
date of the enactment of this Act.
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