[House Report 104-590]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-590
_______________________________________________________________________


 
 PROVIDING FOR THE CONSIDERATION OF H.R. 3448, THE SMALL BUSINESS JOB 
 PROTECTION ACT, AND H.R. 1227, THE EMPLOYEE COMMUTING FLEXIBILITY ACT

                                _______


May 21, 1996.--Referred to the House Calendar and ordered to be printed

_______________________________________________________________________


   Mr. Solomon, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 440]

    The Committee on Rules, having had under consideration 
House Resolution 440, by a non-record vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

               Brief Summary of Provisions of Resolution

    The resolution first provides for consideration in the 
House of H.R. 3448, the Small Business Job Protection Act. All 
points of order are waived against the bill except those 
arising under section 425(a) of the Congressional Budget Act, 
prohibiting unfunded mandates. The rule provides that the 
amendment in the nature of a substitute recommended by the Ways 
and Means Committee shall be considered as read. The rule 
waives all points of order against the committee amendment in 
the nature of a substitute except those arising under sec. 
425(a) of the Budget Act. The rule provides that the bill and 
committee amendment shall be debatable for one hour, divided 
between the chairman and ranking minority member of the Ways 
and Means Committee.
    The rule orders the previous question on the bill and 
committee amendment to final passage without intervening motion 
except one motion to recommit, with or without instructions. 
The rule provides that the provisions of clause 5C of rule XXI, 
requiring a three-fifths vote on bills, amendments, or 
conference reports containing income tax rate increases, shall 
not apply to the bill, amendments thereto, or conference 
reports thereon.
    After disposition of H.R. 3448, the rule provides for 
consideration in the House of H.R. 1227, the Employee Commuting 
Flexibility Act without intervening point of order except those 
arising under sec. 425(a) of the Budget Act (prohibiting 
unfunded mandates). The rule provides that the amendment in the 
nature of a substitute recommended by the Economic and 
Educational Opportunities Committee, modified by the amendment 
printed in section 3 of the rule (adding a short title) is 
considered as adopted.
    The rule orders the previous question to final passage 
without intervening motion except: (1) 90 minutes of debate 
divided between the chairman and ranking minority member of the 
Economic and Educational Opportunities Committee; (2) an 
amendment printed in part 1 of the report on the rule if 
offered by Rep. Riggs of California or his designee, debatable 
for 90 minutes; (3) an amendment printed in part 2 of the 
report on the rule if offered by Rep. Goodling of Pennsylvania 
or his designee, debatable for one hour, and subject to a 
division of the question between subsection 3(d) and the rest 
of the amendment; and (4) one motion to recommit, with or 
without instructions. The rule provides that each amendment 
made in order is considered as read, is not subject to 
amendment or point of order (except those arising under sec. 
425(a) of the Budget Act).
    The rule provides that in the engrossment of H.R. 3448, the 
Clerk shall await disposition of H.R. 1227 and then add the 
text of H.R. 1227 as passed by the House to H.R. 3448. Upon the 
addition of the text of H.R. 1227 to the engrossment of H.R. 
3448, H.R. 1227 shall be laid on the table.

                            Committee Votes

    Pursuant to clause 2(l)(2)(B) of House rule XI the results 
of each rollcall vote on an amendment or motion to report, 
together with the names of those voting for and against, are 
printed below:

                    rules committee rollcall No. 320

    Date: May 21, 1996.
    Measure: Rule for the consideration of the bills H.R. 3448, 
the Small Business Job Protection Act, and H.R. 1227, the 
Employee Commuting Flexibility Act.
    Motion By: Mr. Beilenson.
    Summary of Motion: Make in order the amendment by Rep. Neal 
to H.R. 3448 to allow an above-the-line deduction of up to 
$5,000 for qualified higher education expenses and offset with 
extension of the airline excise taxes through Dec. 31, 1998.
    Results: Rejected, 2 to 7.
    Vote by Members: Dreier--Nay; Goss--Nay; Linder--Nay; 
Pryce--Nay; McInnis--Nay; Greene--Nay; Beilenson--Yea; Frost--
Yea; Solomon--Nay.

                    rules committee rollcall No. 321

    Date: May 21, 1996.
    Measure: Rule for the consideration of the bills H.R. 3448, 
the Small Business Job Protection Act, and H.R. 1227, the 
Employee Commuting Flexibility Act.
    Motion By: Mr. Frost.
    Summary of Motion: Make in order the amendment by Rep. 
Rangel to H.R. 3448 striking the provision in the bill relating 
to termination of the Puerto Rico and possessions tax credit, 
and offset with a one year extension of the airport and airway 
trust fund taxes.
    Results: Rejected, 1 to 8.
    Vote by Members: Dreier--Nay; Goss--Nay; Linder--Nay; 
Pryce--Nay; McInnis--Nay; Greene--Nay; Beilenson--Nay; Frost--
Yea; Solomon--Nay.
                              ----------                              


                                 PART 1

 The Amendment To Be Offered by Representative Riggs of California, or 
                              His Designee

    Add at the end the following:

SEC. 3. MINIMUM WAGE INCREASE.

    (a) Short Title.--This section may be cited as the 
``Minimum Wage Increase Act of 1996''.
    (b) Amendment.--Paragraph (1) of section 6(a) of the Fair 
Labor Standards Act of 1938 (29 U.S.C. 206(a)) is amended to 
read as follows:
          ``(1) except as otherwise provided in this section, 
        not less than $4.25 an hour during the period ending on 
        June 30, 1996, not less than $4.75 an hour during the 
        year beginning on July 1, 1996, and not less than $5.15 
        an hour after the expiration of such year;''.
                              ----------                              


                                 PART 2

The Amendment To Be Offered by Representative Goodling of Pennsylvania 
                            or His Designee

  Add at the end the following:

SEC. 3. FAIR LABOR STANDARDS ACT AMENDMENTS.

  (a) Computer Professionals.--Section 13(a) of the Fair Labor 
Standards Act of 1938 (29 U.S.C. 213(a)) is amended by striking 
the period at the end of paragraph (16) and inserting ``; or'' 
and by adding after that paragraph the following:
          ``(17) any employee who is a computer systems 
        analyst, computer programmer, software engineer, or 
        other similarly skilled worker, whose primary duty is--
                  ``(A) the application of systems analysis 
                techniques and procedures, including consulting 
                with users, to determine hardware, software, or 
                system functional specifications;
                  ``(B) the design, development, documentation, 
                analysis, creation, testing, or modification of 
                computer systems or programs, including 
                prototypes, based on and related to user or 
                system design specifications;
                  ``(C) the design, documentation, testing, 
                creation, or modification of computer programs 
                related to machine operating systems; or
                  ``(D) a combination of duties described in 
                subparagraphs (A), (B), and (C) the performance 
                of which requires the same level of skills, and
        who, in the case of an employee who is compensated on 
        an hourly basis, is compensated at a rate of not less 
        than $27.63 an hour.''.
  (b) Tip Credit.--The next to last sentence of section 3(m) of 
the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)) is 
amended to read as follows: ``In determining the wage an 
employer is required to pay a tipped employee, the amount paid 
such employee by the employee's employer shall be an amount 
equal to--
          ``(1) the cash wage paid such employee which for 
        purposes of such determination shall be not less than 
        the cash wage required to be paid such an employee on 
        the date of the enactment of this paragraph; and
          ``(2) an additional amount on account of the tips 
        received by such employee which amount is equal to the 
        difference between the wage specified in paragraph (1) 
        and the cash wage in effect under section 6(a)(1).
The additional amount on account of tips may not exceed the 
value of the tips actually received by an employee.''.
  (c) Opportunity Wage.--Section 6 of the Fair Labor Standards 
Act of 1938 (29 U.S.C. 206) is amended by adding at the end the 
following:
  ``(g)(1) In lieu of the rate prescribed by subsection (a)(1), 
any employer may pay any employee of such employer, during the 
first 90 consecutive calendar days after such employee is 
initially employed by such employer, a wage which is not less 
than $4.25 an hour.
  ``(2) No employer may take any action to displace employees 
(including partial displacements such as reduction in hours, 
wages, or employment benefits) for purposes of hiring 
individuals at the wage authorized in paragraph (1).
  ``(3) Any employer who violates this subsection shall be 
considered to have violated section 15(a)(3).
  ``(4) This subsection shall only apply to an employee who has 
not attained the age of 20 years.''.
  (d) Small Business Exemption.--
          (1) Special industry committees.--Section 5(a) of the 
        Fair Labor Standards Act of 1938 (29 U.S.C. 205(a)) is 
        amended by striking ``engaged in commerce or in the 
        production of goods for commerce or employed in any 
        enterprise engaged in commerce or in the production of 
        goods for commerce'' each time that it appears and 
        inserting each time the following: ``who are (1) 
        engaged in industrial homework subject to 11(d) and are 
        either (A) engaged in commerce, or (B) engaged in the 
        production of goods for commerce, or (2) employed in an 
        enterprise engaged in commerce or in the production of 
        goods for commerce''.
          (2) Minimum wage.--Section 6(a) of the Fair Labor 
        Standards Act of 1938 (29 U.S.C 206(a)) is amended by 
        striking ``who in any workweek is engaged in commerce 
        or in the production of goods for commerce, or is 
        employed in an enterprise engaged in commerce or in the 
        production of goods for commerce'' and inserting the 
        following: ``who in any workweek is engaged in 
        industrial homework subject to 11(d) and is either 
        engaged in commerce or engaged in the production of 
        goods for commerce, or employed in an enterprise 
        engaged in commerce or in the production of goods for 
        commerce''.
          (3) Wage orders.--Section 8(a) of the Fair Labor 
        Standards Act of 1938 (29 U.S.C. 208(a)) is amended by 
        striking ``employers in American Samoa engaged in 
        commerce or in the production of goods for commerce 
        or'' and inserting in lieu thereof ``employers in 
        American Samoa''.
          (4) Maximum hours.--Paragraphs (1) and (2) of section 
        7(a) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
        207(a)) are each amended by striking ``who in any 
        workweek is engaged in commerce or in the production of 
        goods for commerce, or is employed in an enterprise 
        engaged in commerce or in the production of goods for 
        commerce'' and inserting the following: ``who in any 
        workweek is (A) engaged in industrial homework subject 
        to 11(d) and is either (i) engaged in commerce, or (ii) 
        engaged in the production of goods for commerce, or (B) 
        employed in an enterprise engaged in commerce or in the 
        production of goods for commerce''.
          (6) Sex discrimination.--Paragraphs (1) and (2) of 
        section 6(d) of the Fair Labor Standards Act of 1938 
        (29 U.S.C. 206(d)) are each amended by inserting after 
        ``employees subject to any provisions of this section'' 
        the following: ``or employees engaged in commerce or in 
        the production of goods for commerce''.
          (7) Handicapped workers.--Section 14(c)(1) of the 
        Fair Labor Standards Act of 1938 (29 U.S.C. 214(c)(1)) 
        is amended by inserting after ``injury'' the following: 
        ``and who are engaged in commerce or in the production 
        of goods for commerce, or who are employed in an 
        enterprise engaged in commerce or in the production of 
        goods for commerce''.
          (8) Preservation of coverage.--In the case of an 
        employee who on May 15, 1996, was subject to section 
        6(a)(1) of the Fair Labor Standards Act of 1938 (29 
        U.S.C. 206(a)(1)) and who because of the amendments 
        made by this subsection is not subject to such section, 
        the employer of such employee on such date shall--
                  (A) pay such employee not less than the 
                minimum wage in effect under such section on 
                May 15, 1996;
                  (B) pay such employee in accordance with 
                section 7 of such Act (29 U.S.C. 207); and
                  (C) remain subject to section 12 of such Act 
                (29 U.S.C. 212).
        No employer may take any action to displace employees 
        (including partial displacements such as reduction in 
        hours, wages, or employment benefits) for purposes of 
        hiring individuals at less than the wage authorized in 
        subparagraph (A) or to avoid the protections of 
        subparagraphs (B) and (C). Any employer who violates 
        the preceding sentence shall be considered to have 
        violated section 15(a)(3) of the Fair Labor Standards 
        Act of 1938.