Full text of Full Employment and Balanced Growth Act (Humphrey-Hawkins Act)

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PUBLIC LAW 95-523—OCT. 27, 1978

92 STAT. 1887

Public Law 95-523
95th Congress
An Act
To translate into practical reality the right of all Americans who are able, willing, and. seeking to work to full opportunity for useful paid employment a t
fair rates of compensation; to assert the responsibility of the Federal Government to use all practicable programs and policies to promote full employment,
production, and real income, balanced growth, adequate productivity growth,
proper attention to national priorities, and reasonable price stability; to
require the President each year to set forth explicit short-term and mediumterm economic goals; to achieve a better integration of general and structural
economic policies; and to improve the coordination of economic policymaking
within the Federal Government.

Oct. 27, 1978
[H.R. 50]

Be is eTiacted hy the Senate
and House of Representatives
of the
Full Employment
United States of America
in Congress
asserribled^
S E C T I O N 1. T h i s A c t a n d t h e f o l l o w i n g t a b l e of c o n t e n t s m a y b e and Balanced
c i t e d a s t h e " F u l l E m p l o y m e n t a n d B a l a n c e d G r o w t h A c t of 1 9 7 8 " . Growth Act of
1978.
TABLE OF CONTENTS
15 u s e 3101
note.
Sec. 1. Short title; table of contents.
Sec. 2. General findings.
Sec. 3. Report.
Sec. 4. National Employment Conference.
TITLE I—ESTABLISHMENT OF GOALS AND GENERAL ECONOMIC
POLICIES
Sec. 101. Statement of purpose.
Sec. 102. Declaration of policy.
Sec. 103. Economic Report of the President and short-term economic goals and
policies.
Sec. 104. Full employment and balanced growth; medium-term economic goals
and policies.
Sec. 105. Provisions applicable to short-term and medium-term goals.
Sec. 106. National priority policies and programs required for full employment
and balanced growth.
Sec. 107. The President's budget.
Sec. 108. Monetary policy.
Sec. 109. Overcoming inflation.
Sec. 110. Council of Economic Advisers.
Sec. 111. Advisory Board or Boards.
T I T L E II—STRUCTURAL POLICIES AND PROGRAMS, INCLUDING
TREATMENT OF RESOURCE RESTRAINTS
Sec. 201. Statement of purpose.
Sec. 202. Countercyclical employment policies.
Sec. 203. Coordination with State and local government and private sector
economic activity.
Sec. 204. Regional and structural employment policies.
Sec. 205. Youth employment policies.
Sec, 206. Job training, counseling, and reservoirs of employment projects.
Sec. 207. Capital formation—^private and public.
[

T I T L E III—POLICIES AND PROCEDURES FOR CONGRESSIONAL
REVIEW
Sec. 301. Statement of purpose.
Sec. 302. Committee review.
Sec. 303. Review of Economic Report as part of the Budget process.
Sec. 304. Modification of timetable for achieving unemployment goals.
Sec. 305. Exercise of rulemaking powers.
T I T L E IV—GENERAL PROVISIONS
Sec. 401. Nondiscrimination.
Sec. 402. Labor standards.

92 STAT. 1888

PUBLIC LAW 95-523—OCT. 27, 1978
GENERAL FINDINGS

15 use 3101.

'' '

'

" ''"

SEC. 2. (a) The Congress finds that the Nation has suffered substantial unemployment and underemployment, idleness of other productive
resources, high rates of inflation, and inadequate productivity
growth, over prolonged periods of time, imposing numerous economic
and social costs on the Nation. Such costs include the following:
(1) The Nation is dep)rived of the full supply of goods and
services, the full utilization of labor and capital resources, and
the related increases in economic well-being that would occur
under conditions of genuine full employment, production, and
real income, balanced growth, a balanced Federal budget, and the
effective control of inflation.
(2) The output of goods and services is insufficient to meet
pressing national priorities.
(3) Workers are deprived of the job security, income, skill
development, and productivity necessary to maintain and
advance their standards of living.
(4) Business and industry are deprived of the production,
sales, capital flow, and productivity necessary to maintain adequate profits, undertake new investment, create jobs, compete
internationally, and contribute to meeting society's economic
needs. These problems are especially acute for smaller businesses.
Variations in the business cycle and low-level operations of the
economy are far more damaging to smaller businesses than to
larger business concerns because smaller businesses have fewer
available resources, and less access to resources, to withstand
nationwide economic adversity. A decline in small business enterprises contributes to unemployment by reducing employment
opportunities and contributes to inflation by reducing competition.
(5) Unemployment exposes many families to social, psychological, and physiological costs, including disruption of family
life, loss of individual dignity and self-respect, and the aggravation of physical and psychological illnesses, alcoholism and drug
abuse, crime, and social conflicts.
(6) Federal, State, and local government budgets are undermined by deficits due to shortfalls in tax revenues and in increases
in expenditures for unemployment compensation, public assistance, and other recession-related services in the areas of criminal
justice, alcoholism and drug abuse, and physical and mental
health.
(b) The Congress further finds that:
(1) High unemployment may contribute to inflation by diminishing labor training and skills, underutilizing capital resources,
reducing the rate of productivity advance, increasing unit labor
costs, and reducing the general supply of goods and services.
(2) Aggregate monetary and fiscal policies alone have been
unable to achieve full employment and production, increased real
income, balanced growth, a balanced Federal budget, adequate productivity growth, proper attention to national priorities, achievement of an improved trade balance, and reasonable price stability,
and therefore must be supplemented by other measures designed
to serve these ends.
(3) Attainment of these objectives should be facilitated by
setting explicit short-term and medium-term economic goals, and
by improved coordination among the President, the Congress,
and the Board of Governors of the Federal Reserve System.

PUBLIC LAW 95-523—OCT. 27, 1978

92 STAT. 1889

(4) Increasing job opportunities and full employment would
greatly contribute to the elimination of discrimination based
upon sex, age, race, color, religion, national origin, handicap, or
other improper factors.
(c) The Congress further finds that an effective policy to promote
full employment and production, increased real income, balanced
growth, a balanced Federal budget, adequate productivity growth,
proper attention to national priorities, achievement of an improved
trade balance, and reasonable price stability should (1) be based on
the development of explicit economic goals and policies involving the
President, the Congress, and the Board of Governors of the Federal
Reserve System, with maximum reliance on the resources and ingenuity of the private sector of the economy, (2) include programs specifically designed to reduce high unemployment due to recessions, and
to reduce structural unemployment within regional areas and among
particular labor force groups, and (3) give proper attention to the role
of increased exports and improvement in the international competitiveness of agriculture, business, and industry in providing productive
employment opportunities and achieving an improved trade balance.
(d) The Congress further finds that full employment and production, increased real income, balanced growth, a balanced Federal
budget, adequate productivity growth, proper attention to national
priorities, achievement of an improved trade balance through increased
exports and improvement in the international competitiveness of agriculture, business, and industry, and reasonable price stability are
important national requirements and will promote the economic security and well-being of all citizens of the Nation.
(e) The Congress further finds that the United States is part of
an interdependent world trading and monetary system and that attainment of the requirements specified in subsection (d) is dependent upon
policies promoting a free and fair international trading system and
a sound and stable international monetary system.
REPORT

SEC. 3. Not later than one year after the date of enactment of this Full employment
Act, the Committee on Human Resources of the Senate and the Com- goal, study.
mittee on Education and Labor of the House of Representatives each 15 use 3102.
shall conduct a study and submit a report, including findings and
recommendations, to the Committee on Rules and Administration of
the Senate and the Committee on Rules of the House, respectively,
on the subject of establishing a full employment goal in connection
with the provisions of this Act.
NATIONAL EMPLOYMENT CONFERENCE

SEC. 4. (a) A national Employment Conference may be convened Convening and
in the District of Columbia within a reasonable period of time after organization.
the date of enactment of the Full Employment and Balanced Growth 15 use 3103.
Act of 1978. Responsibility for the organization and implementation
of this conference shall rest with the President or the appropriate
department or agency of the Federal Government, and the conference shall bring together leaders of small and larger business, labor,
government, and all other interested parties.
(b) The subject of the conference shall be employment, with particular attention to structural unemployment and the plight of disadvantaged youth. The conference shall also focus on issues such as

39-194 O—80—pt. 2

39 : QL3

92 STAT. 1890

PUBLIC LAW 95-523—OCT. 27, 1978
implementation of adequate and effective incentives for private sector
employers to hire the hard-core unemployed. Special attention shall
be given to the creation of jobs through the use of targeted employment tax credits, wage vouchers, and other incentives to private sector
businesses.
T I T L E I—ESTABLISHMENT OF GOALS AND GENERAL
ECONOMIC P O L I C I E S
fit

15 use 1021
note.

15 use 1021

>.

•

i

STATEMENT OF PURPOSE

. . . '

.

' <

SEC. 101. It is the purpose of this title—
(^) ^^ declare the general policies of this Act;
(2^ to provide an open process under which economic goals and
policies are proposed, reviewed, and established;
(3) to provide for yearly review of national economic policies
to ensure their consistency with these goals to the maximum
extent possible; and
(4) to strengthen and supplement the purposes and policies
of the Employment Act of 1946.

note.
DECLARATION OP POLICY

15 use 1021.

*^,,, .^,i
, •
MiH ; c

Post, p. 1895.

Ante, p. 1887.

S E C 102. Section 2 of the Employment Act of 1946 is amended to
read as follows:
"SEC. 2. (a) The Congress hereby declares that it is the continuing
policy and responsibility of the Federal Government to use all practicable means, consistent with its needs and obligations and other
essential national policies, and with the assistance and cooperation of
both small and larger businesses, agriculture, labor, and State and
local governments, to coordinate and utilize all its plans, functions,
and resources for the purpose of creating and maintaining, in a manner calculated to foster and promote free competitive enterprise and
the general welfare, conditions which promote useful employment
opportunities, including self-employment, for those able, willing, and
seeking to work, and promote full employment and production,
increased real income, balanced growth, a balanced Federal budget,
adequate productivity growth, proper attention to national priorities,
achievement of an improved trade balance through increased exports
and improvement in the international competitiveness of agriculture,
business, and industry, and reasonable price stability as provided in
section 5 (b) of this Act.
"(b) The Congress further declares and establishes as a national
goal tne fulfillment of the right to full opportunities for useful paid
employment at fair rates of compensation of all individuals able,
willing, and seeking to work.
"(c) The Congress further declares that inflation is a major
national problem requiring improved government policies relating to
food, energy, improved and coordinated fiscal and monetary management, the reform of outmoded rules and regulations of tne Federal
Government, the correction of structural defects in the economy that
prevent or seriously impede competition in private markets, and other
measures to reduce the rate of inflation.
"(d) The Congress further declares that it is the purpose of the
Full Employment and Balanced Growth Act of 1978 to improve the
coordination and integration of the policies and programs of the
Federal Government toward achievement of the objectives of such

PUBLIC LAW 95-523—OCT. 27, 1978

92 STAT. 1891

Act through better management, increased efficiency, and attention
to long-range as well as short-range problems and to balancing the
Federal budget.
"(e) The Congress further declares that, although it is the purpose
under the Full Employment and Balanced Growth Act of 1978 to Ante, p. 1887.
seek diligently and to encourage the voluntary cooperation of the
private sector in helping to achieve the objectives of such Act, no
provisions of such Act or this Act shall be used, with respect to any
portion of the private sector of the economy, to provide for Federal
Government control of production, employment, allocation of
resources, or wages and prices, except to the extent authorized under
other Federal laws.
"(f) The Congress further declares that it is the purpose of the
Full Employment and Balanced Growth Act of 1978 to maximize
and place primary emphasis upon the expansion of private employment, and all programs and policies imder such Act shall be in accord
with such purpose. Toward this end, the effort to expand jobs to the
,
full employment level shall be in this order of priority to the extent
consistent with balanced growth—
"(1) expansion of conventional private jobs through improved
use of general economic and structural policies, including measures to encourage private sector investment and capital formation;
,
,.
"(2) expansion of private employment through Federal assistance in connection with the priority programs in such Act;
"(3) expansion of public employment other than through the
provisions of section 206 of such Act; and
Post, p. 1902.
"(4) when recommended by the President under section 206
of such Act and subject to the limitations in such section, the
creation of employment through the methods set forth in such
section.
"(g) The Congress further declares that trade deficits are a major
national problem requiring a strong national export policy including
improved Government policies relating to the promotion, facilitation,
and financing of commercial and agricultural exports, Government
policies designed to reduce foreign barriers to exports through international negotiation and agreement. Federal support for research,
development, and diffusion of new technologies to promote innovation
in agriculture, business, and industry, the elimination or modification
of Government rules or regulations that burden or disadvantage
exports and the national and international competitiveness of agriculture, business, and industry, the reexamination of antitrust laws
and policies when necessary to enable agriculture, business, and industry to meet foreign competition in the United States and abroad, and
the achievement of a free and fair international trading system and a
sound and stable international monetary order.
"(h) The Congress further declares that it is the purpose of the
Full Employment and Balanced Growth Act of 1978 to achieve a
balanced Federal budget consistent with the achievement of the
medium-term goals specified in section 4.
Post, p. 1893.
"(i) The Congress further declares that it is the continuing policy
and responsibility of the Federal Government, in cooperation with
State and local governments, to use all practical means consistent with
other essential considerations of national policy to provide sufficient
incentives to assure meeting the investment needs of private enterprise, including the needs of small and medium sized businesses, in
order to increase the production of goods, the provision of services,
employment, the opportunity for profit, the payment of taxes, and to

92 STAT. 1892

Ante, p. 1887.

PUBLIC LAW 95-523—OCT. 27, 1978
reduce and control inflation. To the extent it is reasonably possible to
do so, private enterprise investments in depressed urban and rural
areas should be promoted to reduce the high levels of unemployment
that exist there.
"(j) The Congress further declares that it is the purpose of the
Full Employment and Balanced Growth Act of 1978 to rely principally on the private sector for expansion of economic activity and
creation of new jobs for a growing labor force. Toward this end, it is
the purpose of this Act to encourage the adoption of fiscal policies
that would establish the share of the gross national product accounted
for by Federal outlays at the lowest level consistent with national
needs and priorities.".
ECONOMIC REPORT OF T H E PRESIDENT AND SHORT-TERM ECONOMIC
GOALS AND POLICIES

15 use 1022,

S E C 103. (a) The heading preceding section 3 and section 3(a) of
the Employment Act of 1946 are amended to read as follows:
"ECONOMIC REPORT OF T H E

P R E S I D E N T A N D SHORT-TERM

GOALS AND POLICIES

Transmittal to
Congress and
S***®8-

ECONOMIC

,

"SEC. 3. (a) The President shall transmit to the Congress during
the first twenty days of each regular session, with copies transmitted
to the Governor of each State and to other appropriate State and
local officials, an economic report (hereinafter in this Act referred
H
to as the 'Economic Report') together with the annual report of the
Council of Economic Advisers submitted in accord with section 11 (c)
of this Act, setting forth—
"(1) the current and foreseeable trends in the levels of
employment, unemployment, production, capital formation, real
income, Federal budget outlays and receipts, productivity, international trade and payments, and prices, and a review and analysis of recent domestic and international developments affecting
economic trends in the Nation;
"(2) (A) annual numerical goals for employment and unemployment, production, real income, productivity, and prices for
the calendar year in which the Economic Report is transmitted
and for the following calendar year, designated as short-term
goals, which shall be consistent with achieving as rapidly as
feasible the goals of full employment and production, increased
real income, balanced growth, fiscal policies that would establish
the share of an expanding gross national product accounted for
by Federal outlays at the lowest level consistent with national
needs and priorities, a balanced Federal budget, adequate productivity growth, price stability, achievement of an improved
trade balance, and proper attention to national priorities; and
"(B) annual numerical goals as specified in subparagraph (A)
for the three successive calendar years, designated as medium
•,v''; .-^ M'^\
term goals;
"(3) employment objectives for certain significant subgroups
of the labor force, including youth, women, minorities, handicapped persons, veterans, and middle-aged and older persons;
and
"(4) a program for carrying out the policy declared in secAnte, p. 1890.
tion 2, together with such recommendations for legislation as the
President may deem necessary or desirable.".
^

92 STAT. 1893

PUBLIC LAW 95-523—OCT. 2 7 , 1978

(b) Section 3 of the Employment Act of 1946 is amended by add- 15 USC 1022.
ing the following:
" ( d ) F o r the purposes of the F u l l Employment and Balanced
G r o w t h Act of 1978, the percentage rate of unemployment as a per- Ante, p. 1887.
centage of the civilian labor force as set forth by the Bureau of Labor
Statistics in the Department of Labor as computed under the procedures in effect as of the date of enactment of this Act.
" ( e ) F o r the purpose of the F u l l E m p l o y m e n t and Balanced Definitions.
Growth Act of 1978, the terms 'inflation', 'prices', and 'reasonable price
stability' refer to the rate of change or level of the consumer price
index as set forth by the Bureau of Labor Statistics, United States
Department of Labor."
F U L L EMPLOYMENT AND BALANCED GROWTH: MEDIUM-TERM
GOALS AND POLICIES

ECONOMIC

SEC. 104. The Employment Act of 1946 is amended by redesignating sections 4 and 5 as sections 10 and 11, respectively, and by inserting 15 USC 1023,
1024.
a new section 4 as follows:
" F U L L EMPLOYMENT AND BALANCED GROWTH: MEDIUM-TERM ECONOMIC
GOALS AND POLICIES

" S E C . 4. (a) I n each Economic Report after enactment of the F u l l
Employment and Balanced Growth Act of 1978, the President shall
incorporate (as p a r t of the five-year numerical goals in each Economic
Report) medium-term annual numerical goals specified in section
3 ( a ) (2) ( B ) , and in each President's Budget submitted immediately
p r i o r thereto, the President shall incorporate the programs and
policies the President deems necessary to achieve such medium-term
goals and a balanced Federal budget and to achieve reasonable price
stability as rapidly as feasible as provided for in section 5 ( b ) of this
Act.
" ( b ) T h e medium-term goals in the first three Economic Reports
and, subject to the provisions of subsection ( d ) , in each Economic
Report thereafter shall include (as p a r t of the five-year goals in each
Economic Report) interim numerical goals for—
" ( 1 ) reducing t h e rate of unemployment, as set forth pursuant to section 3 ( d ) of this Act, to not more t h a n 3 per centum
among individuals aged twenty and over and 4 per centum among
individuals aged sixteen and over within a period not extending
beyond the fifth calendar year after the first such Economic
R e p o r t ; and
" ( 2 ) reducing the rate of inflation, as set forth p u r s u a n t to
section 3(e) of this Act, to not more t h a n 3 per centum within
a period not extending beyond the fifth calendar year after the
first such Economic R e p o r t : Provided, T h a t policies and programs for reducing the rate of inflation shall be designed so as
not to impede achievement of the goals and timetables specified
in clause (1) of this subsection for the reduction of
unemployment.
F o r purposes of this subsection, the first Economic Report shall be
the Report issued in the first calendar year after enactment of the F u l l
Employment and Balanced Growth Act of 1978.
" (c) (1) U p o n achievement of the 3 and 4 per centum goals specified
in subsection ( b ) ( 1 ) , each succeeding Economic Report shall have
the goal of achieving as soon as practicable and maintaining thereafter full employment and a balanced budget.

15 USC 1022a.

Ante, p. 1892.

Post, p. 1895.

Supra.

Supra.

92 STAT. 1894

Review and
corrective
measures.
Ante, p. 1887.

Post, p. 1904.

Ante, p. 1893.

Presidential
recommendation.

Post, p. 1906.

PUBLIC LAW 95-523—OCT. 27, 1978
" (2) Upon achievement of the 3 per centum goal specified in subsection (b) (2), each succeeding Economic Report shall have the goal
of achieving by 1988 a rate of inflation of zero per centum: Provided,
That policies and programs for reducing the rate of inflation shall be
designed so as not to impede achievement of the goals and timetables specified in clause (1) of this subsection for the reduction of
unempl<wment.
"(d) In the second Economic Report after enactment of the Full
Employment and Balanced Growth Act of 1978, the President shall
review the numerical goals and timetables for the reduction of
unemployment and inflation and the goal of balancing the Federal
budget; report to the Congress on the degree of progress being made,
the programs and policies being used, and any obstacles to achieving
such goals and timetables; and, if necessary, propose corrective economic measures toward achievement of such goals and timetables:
Provided, That beginning with the second Report and in any subsequent Reports, if the President finds it necessary, the President may
recommend modification of the timetable or timetables for the achievement of the goals provided for in subsection (b) and the annual
numerical goals to make them consistent with the modified timetable
or timetables, and the Congress may take such action as it deems appropriate consistent with title III of the Full Employment and Balanced
Growth Act of 1978.
"(e) If, after achievement of the 3 and 4 per centum goals specified
in subsection (b), the unemployment rate for a year as set forth
pursuant to section 3(d) of this Act is more than 3 per centum among
individuals aged twenty and over or more than 4 per centum among
individuals aged sixteen and over, the next Economic Report after
such rate is set forth and each succeeding Economic Report shall
include (as part of the five-year goals in each Economic Report)
the interim numerical goal of reducing unemployment to not more
than the levels specified in subsection (b) (1) as soon as practicable
but not later than the fifth calendar year after the first such Economic
Report, counting as the first calendar year the year in which such
Economic Report is issued: Provided, That, if the President finds it
necessary, the President may, under the authority provided in subsection (d), recommend modification of the timetable provided for in
this subsection for the reduction of unemployment, and for the purposes of section 304 of the Full Employment and Balanced Growth
Act of 1978, such recommendation by the President shall be treated
as a recommendation made under subsection (d) of this section.
"(f) (1) In taking action to reduce unemployment in accord with
the numerical goals and timetable established under section (b), every
effort shall be made to reduce those differences between the rates of
unemployment among youth, women minorities, handicapped persons,
veterans, middle-aged and older persons and other labor force groups
and the overall rate of unemployment which are caused by any
improper factors with the ultimate objective of removing such differentials to the extent possible.
"(2) Insofar as the differences specified in the preceding paragraph
are due to lack of training and skills, occupational practices, and other
relevant factors, the Secretary of Labor shall—
"(A) take such action as practicable to achieve the objectives
of this subsection;
"(B) make studies, develop information, and make recommendations toward remedying these differences in rates of unemployment, and include these in the annual Employment and Training

PUBLIC LAW 95-523—OCT. 27, 1978

92 STAT. 1895

Eeport of the President required under section 705(a) of the
Comprehensive Employment and Training Act of 1973 (herein- Post, p. 2021.
after in this Act referred to as ' C E T A ' ) ; and
"(C) make recommendations, as deemed necessary, to the Congress related to the objectives of this paragraph.
"(g) (1) The term 'middle-aged and older persons' as used in this Definitions,
section includes any individual forty-five years of age or older.
"(2) For purposes of this subsection, the term 'veteran' shall mean
the same as defined in section 2011(1) or (2) (A) of title 38, United
States Code.".
PROVISIONS APPLICABLE TO SHORT-TERM AND MEDIUM-TERM GOALS

SEC. 105. The Employment Act of 1946 is amended by adding a new
section 5 as follows:
" P R O V I S I O N S A P P L I C A B L E T O SHORT-TERM AND MEDIUM-TERM GOALS

"SEC. 5. (a) To aid in determining the short-term and medium- Analysis,
term goals for employment, production, real income, and prices, 15 USC 1022b.
analysis shall be presented in the Economic Report with respect to
major aspects of the appropriate composition or structure of each
goal, and as to the appropriate apportionment of total national
production among its major components (private investment, consumer expenditures, and public outlays) as affected by relative income
flows and other factors, in order to promote balanced growth and a
balanced Federal budget, reduce cyclical disturbances, and achieve
the other purposes of this Act and the Full Employment and Balanced
Growth Act of 1978.
Ante, p. 1887.
"(b) In choosing means to achieve the goal for the reduction of
unemployment and choosing means to achieve the goal of reasonable
price stability, those means which are mutually reinforcing shall
be used to the extent practicable.".
NATIONAL PRIORITY POLICIES AND PROGRAMS REQUIRED FOR FULL
EMPLOYMENT AND BALANCED GROWTH

S E C 106. The Employment Act of 1946 is amended by adding a new
section 6 as follows:
" N A T I O N A L PRIORITY POLICIES AND PROGRAMS REQUIRED FOR F U L L
EMPLOYMENT AND BALANCED GROWTH

"SEC. 6. To contribute to the achievement of the goals under the 15 USC 1022c.
Full Employment and Balanced Growth Act of 1978, the President's
Budget for each fiscal year beginning after the date of enactment
of the Full Employment and Balanced Growth Act of 1978 shall
include priority policies and programs, which shall include, to the
extent deemed appropriate by the President, consideration of the
following—
"(A) development of energy sources and supplies, transportation, and environmental improvement;
"(B) proper attention to the problems and needs of smaller
businesses including (i) the availability of investment capital,
management and technical expertise, and technology and labor
needs, (ii) analysis of economic and social trends which may
affect smaller businesses, (iii) government policies and programs

92 STAT. 1896

PUBLIC LAW 95-523—OCT. 27, 1978

(including agency regulations a n d excessive paperwork requirements) t h a t m a y create undue h a r d s h i p for or reduce the competitiveness of smaller businesses, a n d (iv) other policies and
programs to remove barriers to competition and to strengthen
and promote t h e creation a n d growth of smaller businesses;
, :!!i^;«i. B'>(i
" ( C ) development of a comprehensive national agricultural
policy t h a t assures—
" (i) production levels adequate to meet the nutritional needs
j ; ,5
of all Americans and respond to rising food requirements
throughout the w o r l d ;
" ( i i ) farm a n d ranch income at full parity levels t h a t will
improve opportunities for farm families, encourage production, provide for essential capital investment in farming, a n d
wm
provide for farm prices a t full p a r i t y i n t h e market place;
" ( i i i ) renewed commitment to the protection a n d conservation of rural land a n d water t h r o u g h support for improved
conservation practices a n d research, a n d attention to agricultural land use in the formulation of plans for energy,
water a n d mineral resources, transportation, a n d commercial,
I'i'i.! I i
)''
industrial, a n d residential development; a n d
" ( i v ) support for programs a n d public services designed
to respond to the unique economic a n d social conditions of
r u r a l communities;
" ( D ) proper attention to t h e relationship between Federal
programs a n d policies a n d the problems and needs of urban
areas, including inner cities a n d the employment problems of their
residents, especially y o u t h s ;
" ( E ) proper attention to the quality and quantity of health
care, education and training programs, child care a n d other h u m a n
services, a n d housing, essential to a full employment economy
and to moving toward their availability for all individuals at costs
within their m e a n s ;
" ( F ) policies concerning Federal aid to State and local governments, especially for public investment and unemployment related
costs;
" (G) national defense and other needed international p r o g r a m s ;
" ( H ) proper attention to t h e relationship between Federal
grants, contracts, a n d procurement and the closure of military
bases and other Federal facilities a n d t h e distribution of jobs a n d
income among different regions of the Nation, a n d among urban,
suburban, a n d r u r a l areas;
" ( I ) Proper attention to balancing the Federal budget;
" ( J ) proper attention to the dislocation of jobs caused by
Federal laws, regulations, and policies;
" ( K ) policies and programs designed to increase exports and
improve the international competitive position of agriculture,
business, and industry, including measures to promote a free and
fair international trading system, a sound and stable international
monetary system and innovation in agriculture, business, and
industry ;
" (L) such other priority policies and programs as the President
deems appropriate.".
,
- -re- y jj/?

THE P R E S I D E N T ' S BUDGET

SEC. 107. The Employment Act of 1946 is amended by inserting a
new section 7 as follows:

PUBLIC LAW 95-523—OCT. 27, 1978

92 STAT. 1897

" T H E PRESIDENT'S BUDGET

"SEC. 7. (a) The President's Budget shall recommend levels of outlays and receipts which shall be consistent with the shoxt-term
economic goals of section 3 ( a ) ( 2 ) ( A ) .
"(b) The President's Budget shall provide jfive-year projections of
outlays and receipts consistent with the medium-term goals of section
4(b).
"(c) The principal elements in the President's Budget shall be set
forth briefly in each Economic Eeport, toward the end of making clear
the relationship between the President's Budget and the goals and
policies set forth in such Economic Report. Both the expenditure and
revenue elements of the President's Budget shall be developed to promote the purposes, policies, and goals of the Full Employment and
Balanced Growth Act of 1978. The size of the President's expenditure
and revenue proposals, and the relationships between such proposals,
shall be determined in a manner which gives consideration to the needs
of the economy and the people in the priority areas set forth in section
6, and the relationship between the President's expenditure and
revenue proposals shall be guided accordingly.".

15 USC 1022d.
Ante, p. 1892.
^nte, p. 1893.

Ante, p. 1887.

MONETARY POLICY

SEC. 108. (a) Section 2A of the Federal Reserve Act is amended
by striking out the second and third sentences and inserting in lieu
thereof the following: "In furtherance of the purposes of the Full
Employment and Balanced Growth Act of 1978, the Board of Governors of the Federal Reserve System shall transmit to the Congress,
not later than February 20 and July 20 of each year, independent
written reports setting forth (1) a review and analysis of recent
developments affecting economic trends in the Nation; (2) the objectives and plans of the Board of Governors and the Federal Open
Market Committee with respect to the ranges of growth or diminution of the monetary and credit aggregates for the calendar year
during which the report is transmitted, taking account of past and
prospective developments in employment, unemployment, production,
investment, real income, productivity, international trade and payments, and prices; and (3) the relationship of the aforesaid objectives
and plans to the short-term goals set forth in the most recent Economic
Report of the President pursuant to section 3 ( a ) ( 2 ) ( A ) of the
Employment Act of 1946 and to any short-term goals approved by
the Congress. In addition, as a part of its report on July 20 of each
year, the Board of Governors shall include a statement of its objectives and plans with respect to the ranges of growth or diminution of
the monetary and credit aggregates for the calendar year following
the year in which the report is submitted. The reports required under
the two preceding sentences shall be transmitted to the Congress and
shall be referred in the Senate to the Committee on Banking, Housing, and Urban Affairs, and in the House of Representatives to the
Committee on Banking, Finance and Urban Affairs. The Board shall
consult with each such Committee on the reports and, thereafter, each
such Committee shall submit to its respective body a report containing
its views and recommendations with respect to the Federal Reserve's
intended policies. Nothing in this Act shall be interpreted to require
that the objectives and plans with respect to the ranges of growth
or diminution of the monetary and credit aggregates disclosed in
the reports submitted under this section be achieved if the Board

Annual reports to
Congress.
12 USC 225a.

Transmittals to
congressional
committees,
consultation and
report.

92 STAT. 1898

Effective date.
12 u s e 225a
note.

PUBLIC LAW 95-523—OCT. 27, 1978
of Governors and the Federal Open Market Committee determine
that they cannot or should not be achieved because of changing
conditions: Provided, That in the subsequent consultations with, and
reports to, the aforesaid Committees of the Congress pursuant to this
section, the Board of Governors shall include an explanation of the
reasons for any revisions to or deviations from such objectives and
plans.".
(b) The amendment made by subsection (a) takes effect on January 1,1979.
OVERCOMING I N F L A T I O N

•!

fs

SEC. 109. The Employment Act of 1946 is amended by inserting a
new section 8 as follows:
"OVERCOMING I N F L A T I O N

15 u s e 1022e.
Ante, pp. 1892,
1893.
Ante, p. 1895.

Policy initiation
and recommendations.

"SEC. 8. (a) The Congress hereby determines that the objective of
achieving reasonable price stability as soon as feasible, as set forth
in section 3(a) (3) and section 4(a), shall be pursued by the methods
and subject to the requirements of section 5(b).
"(b) The Congress finds that sole dependence upon fiscal or monetary policies or both to combat inflation can exacerbate both inflation
and unemployment. The Congress finds that the coordinated use of
fiscal and monetary policies in conjunction with specific targeted policies are necessary to combat inflation.
"(c) The President shall initiate specific policies to reduce the rate
of inflation, including recommendations to the Congress where necessary, and include recommendations within the Economic Report
and the President's budget to the extent practicable. Structural policies to reduce the rate of inflation may include—
"(1) an effective information system to monitor and analyze
inflationary trends in individual economic sectors, so that the
President and Congress can be alerted to developing inflation
problems especially those caused by bottlenecks inhibiting the flow
of goods and services;
"(2) programs and policies for alleviating shortages of goods,
services, labor, and capital, with particular emphasis on food,
energy, and critical industrial materials to aid in stabilizing
prices;
"(3) the establishment of stockpiles of agricultural commodities and other critical materials to help stabilize prices, meet
emergencjT^ needs, and promote adequate income to producers;
"(4) encouragement to labor and management to increase productivity within the national framework of full employment
through voluntary arrangements in industries and economic
sectors;
"(5) recommendations to increase competition in the private
sector and to improve the economic climate for the creation and
growth of smaller businesses, including recommendations to
strengthen and enforce the antitrust laws, the patent laws, and
the internal revenue laws and regulations;
"(6) removal or proper modification of such Government
restrictions and regulations as add unnecessarily to inflationary
costs;
"(7) increasing exports and improving the international competitive position of agriculture, business, and industry; and

92 STAT. 1899

PUBLIC LAW 95-523—OCT. 27, 1978
"(8) such other administrative actions and recommendations
for legislation as the President deems desirable, to promote
reasonable price stability.".
COUNCIL OF ECONOMIC ADVISERS

SEC. 110. (a) Section 10 of the Employment Act of 1946 (as redesig- 15 use 1023.
Ante, p. 1893.
nated by section 104 of this Act) is amended—
(1) in the second sentence of subsection (a), by inserting "full"
immediately after "promote";
(2) in subsection (c)(4), by inserting "including small and
larger business" immediately after "enterprise" and by inserting
"full" immediately after "maintain";
(3) in subsection (e) (1), by inserting immediately before the
semicolon a comma and the following: "and shall consult with
the board or boards established under section 9"; and
(4) in subsection (e), by inserting after paragraph (2) the
following:
"In its work under this Act and the Full Employment and Balanced
Growth Act of 1978, the Council is authorized and directed to seek and Ante, p. 1887
obtain the cooperation of the various executive and independent agencies in the development of specialized studies essential to its
responsibilities.".
ADVISORY BOARD OR BOARDS

;/

SEC. 111. (a) The Employment Act of 1946 is amended by inserting a
new section 9 as follows:
"ADVISORY BOARD OR BOARDS

"SEC. 9. (a) An advisory board or boards (including regional
advisory boards) may be established as the President deems appropriate, to advise and consult periodically with one or more of the
following: The President, the Council of Economic Advisers, and such
other departments and agencies of the executive branch of the Federal
Government as the President shall determine.
"(b) Such advisory board or boards shall include appropriate
representation of labor, small and larger businesses and industries,
agriculture, consumers. State and local officials, and the public at
large, and shall advise and consult with respect to matters related
to this Act, the Full Employment aand Balanced Growth Act of 1978,
and other appropriate matters related to national economic programs
and policies. The President shall, in accordance with applicable provisions of law, take the steps necessary to provide appropriate
compensation to the members of such advisory board or boards.".

Establishment
and duties,
15 USC 1022f.

Membership,

i'

T I T L E II—STRUCTURAL ECONOMIC POLICIES AND
PROGRAMS, INCLUDING TREATMENT OF RESOURCE
RESTRAINTS
STATEMENT OF PURPOSE

SEC. 201. The Congress recognizes that general economic policies 15 USC 3111.
alone have been unable to achieve the goals set forth in this Act related
to full employment, production, and real income, balanced growth,
adequate growth in productivity, proper attention to national priorities, achievement of an improved trade balance through increased
exports and improvement in the international competitiveness of agri-

92 STAT. 1900

Ante, p. 1895.
Policies and
programs,
initiation.

PUBLIC LAW 95-523—OCT. .27, 1978
culture, business, and industry, and achievement of reasonable price
stability as provided for in section 5(b) of the Employment Act of
1946. It is, therefore, the purpose of this title to require the President
to initiate, as the President deems appropriate, with recommendations
to the Congress where necessary, supplementary programs and policies
to the extent that the President finds such action necessary to help
achieve these goals, including the goals and timetable for the reduction
of unemployment. Insofar as feasible without undue delay, any policies
and programs so recommended shall be included in the Economic
Report.
COUNTERCYCLICAL EMPLOYMENT POLICIES

15 use 3112.

SEC. 202. (a) Any countercyclical efforts undertaken to aid in
achieving the purposes of section 201 shall consider for inclusion the
following programmatic entities:
(1) accelerated public works, including the development of
t
standby public works projects;
(2) public service employment;
(3) State and local grant programs;
tBJjl .0 ,3*flK •
(4) the levels and duration of unemployment insurance;
(5) skill training in both the private and public sectors, both as
g
a general remedy and as a supplement to unemployment
insurance;
(6) youth employment programs as specified in section 205;
(7) community development programs to provide employment
s
in activities of value to the States, local communities (including
rural areas), and the Nation;
(8)Federal procurement programs which are targeted on labor
surplus areas; and
(9) augmentation of other employment and training programs
?''
'
• '
which would help to reduce high levels of unemployment arising
from cyclical causes.
(b) In any countercyclical efforts undertaken, the President shall
consider a triggering mechanism which will implement the program
during a period of rising unemployment and phase out the program
when unemployment is appropriately reduced, and incorporate effecfjir^ari/.-*
tive means to facilitate individuals assisted under programs developed
pursuant to this section to return promptly to regular private and
public employment as the economy recovers.
COORDINATION W I T H STATE AND LOCAL GOVERNMENT AND
PRIVATE SECTOR ECONOMIC ACTIVITY

15 use 3113.

15 use 1021
note.

SEC. 203. (a) As an integral part of any countercyclical employment policies undertaken in accord with section 202, the President
shall, to the extent the President deems necessary, set forth programs
and policies, including recommended legislation where needed, to
coordinate economic action among the Federal Government, regions,
States and localities, and the private sector to promote achievement of
the purposes of this Act and the Employment Act of 1946 and an
economic environment in which State and local governments and
private sector economic activity and employment will prosper. In
considering programs and policies related to the private sector, full
consideration shall be given to promoting the growth and well-being
of small businesses and employment training programs through private sector incentives.

PUBLIC LAW 95-523—OCT. 27, 1978

92 STAT. 1901

(b) In any efforts under this section, the President shall endeavor
to meet criteria that establish programs which are funded to take
account of the fiscal needs and budget conditions of the respective
States and localities and their own efforts, with special attention to
the rates of unemployment in such States and localities.
REGIONAL AND STRUCTURAL EMPLOYMENT POLICIES

SEC. 204. (a) To the extent deemed appropriate by the President in Legislative
fulfillment of the purposes of section 201, the President shall recom- recommendamend legislation to the Congress if necessary, regional and struc- tions.
15 use 3114.
tural employment policies and programs.
(b) In formulating the regional components of any such programs,
the President shall encourage to the extent the President deems nec•shA
essary, new private sector production and employment to locate within
depressed localities and regions with substantial unemployment and
to aid in stabilizing their economic base. To the extent feasible, such
policies and programs shall foster the establishment and growth
of smaller businesses in such localities and regions. Any regional Analysis,
employment proposal of the President shall also include an analysis inclusion.
of the extent to which Federal tax, expenditure (including procurement of goods and services), defense, transportation, energy, natural
resources and employment policies have influenced the movement of
people, jobs, and small and larger business and industries from chronic
high unemployment regions and areas, and proposals designed to
correct Federal policies that have an advei"se economic impact upon
such regions and areas.
YOUTH EMPLOYMENT POLICIES

SEC. 205. (a) The Congress finds and declares—
15 use 3115.
(1) That serious unemployment and economic disadvantage
of a unique nature exist among youths even under generally
favorable economic conditions;
(2) that this group constitutes a substantial portion of the
Nation's unemployment, and that this significantly contributes to
? > crime, alcoholism and drug abuse, and other social and economic
problems; and
(3) that many youths have special employment needs and
problems which, if not promptly addressed, will substantially
contribute to more severe unemployment problems in the long
run.
(b) To the extent deemed necessary in fulfillment of the purposes
of this Act, the President shall improve and expand existing youth
employment programs, recommending legislation where required. In
formulating any such program, the President shall—
(1) include provisions designed to fully coordinate youth
employment activities with other employment and training
programs;
(2) develop a smoother transition from school to work;
(3) prepare disadvantaged and other youths with employi* ability handicaps for regular self-sustaining employment;
(4) develop realistic methods for combining training with
work; and
(5) develop provisions designed to attract structurally unemployed youth into productive full-time employment through
incentives to private and independent sector businesses;

92 STAT. 1902

PUBLIC LAW 95-523—OCT. 27, 1978
J O B T R A I N I N G , COUNSELING AND IlESERVOIRS OF EMPLOYMENT PROJECTS

Policies,
procedures and
recommendations.
15 u s e 3116.
15 u s e 1021
note.

Post, p. 1930.

Project
reservoirs,
establishment.

Ante, pp. 1892,
1893.

SEC. 206. (a) Further to promote achievement of full employment
under this Act and the Employment Act of 1946, the President,
through the Secretary of Labor, shall develop policies and procedures
and, as necessary, recommend programs for providing employment
opportunities to individuals aged 16 and over in the civilian labor
force who are able, willing, and seeking to work but who, despite
serious efforts to obtain employment, remain imemployed.
(b) In meeting the responsibilities under subsection (a), the Secretary of Labor shall, as appropriate, fully utilize the authority provided
under CETA and other relevant provisions of law to—
(1) assure the availability of counseling, training, and other
support activities necessary to prepare persons willing and seeking
work for employment (including use of section 110 of CETA
when necessary) ;
(2) refer persons able, willing, and seeking to work to job
opportunities in the private and public sectors through the existing
public employment placement facilities and through the United
States Employment Service of the Department of Labor, including job opportunities in any positions created under programs
established pursuant to sections 202, 204, and 205 of this Act; and
(3) encourage flexi-time and part-time jobs for persons who are
able, willing, and seeking employment but who are unable to
work a standard workweek.
(c) (1) To the extent that individuals aged sixteen and over and able,
willing, and seeking to work are not and in the judgment of the President cannot be provided with private job opportunities or job opportunities under other programs and actions in existence, in accord
with the goals and timetables set forth in the Employment Act of
1946, the President shall, as may be authorized by law, establish
reservoirs of public employment and private nonprofit employment
projects, to be approved by the Secretary of Labor, through expansion
of CETA and other existing employment and training projects or
through such new programs as are determined necessary by the
President or through both such projects and such programs.
(2) New programs as may be authorized by law after the date of
enactment of this Act referred to in paragraph (c)(1) —
(A) shall not be put into operation earlier than two years after
the enactment of this Act, nor without a finding by the President,
transmitted to the Congress, that other means of employment are
not yielding enough jobs to be consistent with attainment of the
goals and timetables for the reduction of unemployment set forth
in the Employment Act of 1946;
(
(B) shall be designed so that no workers from private employment are drawn into the reservoir projects thereunder;
(C) shall be useful and productive jobs;
(D) shall be mainly in the lower ranges of skills and pay, and
toward this end the number of reservoir jobs under such new
programs shall, to the extent practicable, he maximized in relationship to the appropriations provided for such jobs;
(E) shall be targeted on areas of high unemployment and on
individuals who are structurally unemployed;
(F) shall be phased in by the President as necessary, in conjunction with the employment goals under sections 3(a) (2) and
4 (b) of the Employment Act of 1946.

92 STAT. 1903

PUBLIC LAW 95-523—OCT. 27, 1978

(d) The Secretary, in carrying out the provisions of this section, Regulatioas.
shall establish regulations providing for—
(1) an initial determination of the job seeker's ability to be
employed at certain types and duration of work, so that such
individual may be appropriately referred to jobs, training, counseling, and other supportive services;
(2) compliance with the nondiscrimination provisions of this
Act in accordance with section 401;
Post, p. 1907.
(3) appropriate eligibility criteria to determine the order of
priority of access of any person to any new programs under
sub::3ction (c) as may be authorized by law including but not
necessarily limited to (A) household income, duration of unemployment (not less than five weeks), and the number of people
economically dependent upon such person; and (B) denial of
access to any person refusing to accept or hold a job except for
good cause, as determined by the Secretary of Labor, including
refusal to accept or hold a job subject to reference under subsection
(b) paragraph (2), in order to seek a reservoir project job under
:,,; ! subsection (c) ; and
(4) such administrative appeal procedures as may be appropriate to review the initial determination of the abilities of persons willing, able, and seeking to work under paragraph (1) of
this subsection and the employment need and eligibility under
paragraph (3) of this subsection.
CAPITAL FORMATION—^PRIVATE AND PUBLIC

•

HJ.

SEC. 207. (a) The Congress finds that—
(1) promotion of full employment and balanced growth is in
itself a principal avenue to high and sustained rates of capital
formation;
(2) high rates of capital formation are necessary to ensure adequate rates of capacity expansion and productivity growth, compliance with governmental health, safety and environmental
standards, and the replacement of obsolete production equipment;
(3) the ability of our economy to compete successfully in
international markets, the development of new technology,
improved working conditions, expanding job opportunities, and
an increasing standard of living depend on the availability of
adequate capital at reasonable cost to commerce and industry;
(4) an important goal of national policy shall be to remove
obstacles to the free flow of resources into new investment, particularly those obstacles that hinder the creation and growth of
smaller businesses because general national programs and policies to aid and stimulate private enterprise are not sufficient to
deal with the special problems and needs of smaller businesses;
and
(5) while private business firms are, and should continue to be,
the major source of investment, the investment activities of the
Federal, State, and local governments play an important role
in affecting the level of output, employment, and productivity
and in achieving other national purposes,
(b) The_ Economic Report shall include an Investment Policy
Report which shall, as appropriate, (1) review and assess existing
Federal Government programs and policies which affect business
investment decisions, including, but not limited to, the relevant aspects

15 USC 3117.

^

.i

^^

Investment
Policy Report,
inclusion,

92 STAT. 1904

Assessment.
Recommendations.

Referral to
congressional
committee.

15 use 1021
note.

ijh -j'-u

PUBLIC LAW 95-523—OCT. 27, 1978
of the tax code, Federal expenditure policy, Federal regulatory policy,
international trade policy, and Federal support for research, development, and diffusion of new technologies; (2) provide an assessment of the levels of investment capital available, required by, and
applied to small, medium and large business entities; (3) provide an
analysis of current and foreseeable trends in the level of investment
capital available to such entities; and (4) provide a description of
programs and proposals for carrying out the policy set forth in section
102(i). In addition, the Economic Report shall include an assessment
of the effect of the overall economic policy environment and the rate
of inflation on business investment. The President shall recommend in
the President's Budget, as appropriate, new programs or modifications to improve existing programs concerned with private capital
formation. The President shall also transmit to the Congress as part
of the President's Budget such other recommendations as the President
may deem necessary or desirable to achieve the policy as set forth
in section 102(i). The Investment Policy Report, when transmitted
to the Congress, shall be referred to the Joint Economic Committee.
(c) The Economic Report referred to in subsection (b) shall
review and assess Federal policies and programs which directly,
or through grants-in-aid to State and local governments, or indirectly
through other means, affect the adequacy, composition and effectiveness of public investments, as a means of achieving the goals of this
Act and the Employment Act of 1946. The President shall recommend, as appropriate, new programs and policies or modifications to
improve existing Federal programs affecting public investment.
T I T L E I I I — P O L I C I E S AND PROCEDURES FOR
CONGRESSIONAL R E V I E W
STATEMENT OF PURPOSE

15 use 3131.

Legislative
action.

SEC. 301. (a) The purposes of this title are to establish procedures
for congressional review and action with respect to th"e Economic
Report of the President (hereafter in this title referred to as the
"Economic Report"), the report of the Board of Governors of the
Federal Reserve System, and the other policies and provisions of
this Act and the Employment Act of 1946.
(b) The Congress shall initiate or develop such legislation as it
deems necessary to implement proposals and objectives pursuant to
this Act and the Employment Act of 1946 after such modification in
such proposals at it deems desirable. Nothing in this title shall be
construed to prevent the Congress or any of its committees from
considering or initiating at any time legislative action in furtherance
of the goals and purposes of this act.
COMMTTTEE REVIEW

15 u s e 3132.

Ante, pp. 1892,
1893.

SEC. 302. (a) In conjunction with its review of the Economic
Report, and the holding of hearings on the Economic Report under
the Employment Act of 1946, the Joint Economic Committee shall
review and analyze the short-term and medium-term goals set forth
in the Economic Report pursuant to sections 3(a)(2) and 4(b) of
the Employment Act of 1946 (as amended by sections 103 and 104
of this Act).

PUBLIC LAW 95-523—OCT. 27, 1978

92 STAT. 1905

(b) The Joint Economic Committee shall hold hearings on the Hearings.
Economic Eeport for the purpose of receiving testimony from Members of the Congress, and such appropriate representatives of Federal
departments and agencies, the general public, and interested groups
as the joint committee deems advisable. The joint committee shall also
consider the comments and views on the Economic Report which are
vs. jg
received from State and local officials.
(c) Within thirty days after receipt by the Congress of the Eco- Report.
nomic Report, each standing committee of the Senate and the House
of Representatives, each other committee of the Senate and the House
of Representatives which has legislative jurisdiction, and each joint
committee of the Congress may submit to the Joint Economic Committee, for use by the Joint Economic Committee in conducting its
review and analysis under subsection (a), a report containing the views
and recommendations of the submitting committee with respect to
aspects of the Economic Report which relate to its jurisdiction.
(d) On or before March 15 of each year, a majority of the members Report,
of the Joint Economic Committee shall submit a report to the Committees on the Budget of the Senate and the House of Representatives.
, t
Such report shall include findings, recommendations, and any approt^Ui
priate analyses with respect and in direct comparison to each of the
short-term and medium-term goals set forth in the Economic Report.
REVIEW o r ECONOMIC REPORT AS PART OF CONGRESSIONAL BUDGET PROCESS

SEC. 303. (a) Section 301(c) of the Congressional Budget Act of
1974 is amended—
(1) by inserting after the first sentence the following new
sentences: "Each of the recommendations as to short-term and
medium-term goals set forth in the report submitted by the memI
bers of the Joint Economic Committee under subsection (c) may
be considered by the Committee on the Budget of each House as
part of its consideration of such concurrent resolution, and its
report may reflect its views thereon, and on how the estimates of
revenues and levels of budget authority and outlays set forth in
such concurrent resolution are designed to achieve any goals it is
;,
recommending."; and
(2) by inserting "also" after "shall" in the last sentence.
(b) Section 305 (a) of such Act is amended—
^
(1) by inserting before the periodat the end of the first sentence
of paragraph (2) a comma and "plus such additional hours of
debate as are consumed pursuant to paragraph ( 3 ) " ;
(2) by redesignating paragraphs (3) through (6) as paragraphs (6) through (9) respectively; and
(3) by inserting after paragraph (2) the following new
paragraphs:
"(3) Following the presentation of opening statements on the first
concurrent resolution on the budget for a fiscal year by the chairman
and ranking minority member of the Committee on the Budget of
the House, there shall be a period of up to four hours for debate on
economic goals and policies.
"(4) Only if a concurrent resolution on the budget reported by the
Committee on the Budget of the House sets forth the economic goals
(as described in sections 3(a) (2) and 4(b) of the Full Employment
Act of 1946) which the estimates, amounts, and levels (as described
in section 301 (a)) set forth in such resolution are designed to achieve,

39-194 O—80—pt. 2

40 : QL3

31 USC 1322.

31 USC 1326.

"

''

Ante, pp. 1892,
1893.

92 STAT. 1906

PUBLIC LAW 95-523—OCT. 27, 1978

shall it be in order to offer to such resolution an amendment relating
to such goals, and such amendment shall be in order only if it also
proposes to alter such estimates, amounts, and levels in germane
fashion in order to be consistent with the goals proposed in such
amendment.".
31 use 1326.
(c) Section 305(b) of such Act is amended—
' <•
(1) by redesignating paragraphs (3) and (4) as paragraphs
f^' ^ (6) and (7), respectively; and
•>^^
(2) by inserting after paragraph (2) the following new
paragraphs:
"(3) Following the presentation of opening statements on the first
concurrent resolution on the budget for a fiscal year by the chairman
and ranking minority member of the Committee on the Budget of the
Senate, there shall be a period of up to four hours for debate on economic goals and policies.
"(4) Only if a concurrent resolution on the budget reported by the
• -'^s Committee on the Budget of the Senate sets forth the economic goals
(as described in sections 3(a) (2) and 4(b) of the Employment Act of
Ante, pp. 1892, 1946), which the estimates, amounts, and levels (as described in section
1893.
301 (a)) set forth in such resolution are designed to achieve, shall it be
in order to offer to such resolution an amendment relating to such
goals, and such amendment shall be in order only if it also proposes
to alter such estimates, amounts, and levels in germane fashion in order
to be consistent with the goals proposed in such amendment.".
MODIFICATION OF TIMETABLE FOR ACHIEVING U N E M P L O Y M E N T GOALS

31 use 1322.

•

It

Ante, p. 1893.

Ante, p. 1894.
.i

SEC. 304. (a) Section 301(a) of the Congressional Budget Act of
1974 is amended—
(1) by striking out "and" at the end of paragraph (5) ; and
(2) by renumbering paragraph (6) as (7) and inserting after
, y- paragraph (5) the following new paragraph:
.H .
"(6) if required by subsection (e), the calendar year in which,
•j >
in the opinion of the Congress, the goals for reducing unemployment set forth in section 4(b) of the Employment Act of 1946
should be achieved; and",
(b) Section 301 of such Act is amended by adding at the end thereof
the following new subsection:
"(e)

ACHIEVEMENT OF GOALS FOR REDUCING UNEMPLOYMENT.—

"(1) If, pursuant to section 4(c) of the Employment Act of
1946, as amended, the President recommends in the Economic
Report that the goals for reducing unemployment set for in section 4(b) of such Act be achieved in a year after the close of the
five-year period prescribed by such subsection, the first concurrent
resolution on the budget for the fiscal year beginning after the
date on which such Economic Report is received by the Congress
may set forth the year in which, in the opinion of the Congress,
such goals can be achieved.
"(2) After the Congress has expressed its opinion pursuant
to paragraph (1) as to the year in which the goals for reducing
unemployment set forth in section 4(b) of the Employment Act
of 1946, as amended, can be achieved, if, pursuant to section 4(e)
of such Act, the President recommends in the Economic Report
that such goals be achieved in a year which is different from the
year in which the Congress has expressed its opinion that such
goals should be achieved, either in its action pursuant to para-

92 STAT. 1907

PUBLIC LAW 95-523—OCT. 27, 1978

graph (1) or its most recent action pursuant to this paragraph,
the first concurrent resolution on the budget for the fiscal year
"
beginning after the date on which such Economic Report is
received by the Congress may set forth the year in which, in the
opinion of the Congress, such goals can be achieved.
"(3) I t shall be in order to amend the provision of such resolution setting forth such year only if the amendment thereto also
proposes to alter the estimates, amounts, and levels (as described
in section 301 (a)) set forth in such resolution in germane fashion 31 USC 1322.
in order to be consistent with the economic goals (as described in
sections 3(a)(2) and 4(b) of the Employment Act of 1946) Ante, ppl 1892,
which such amendment proposes can be achieved by the year 1893.
specified in such amendment.".
EXERCISE OF RULEMAKING POWERS

%

SEC. 305. (a) The Provisions of this title and the amendments 15 USC 3133.
made by such provisions are enacted by the Congress—
(1) as an exercise of the rulemaking power of the House of
Representatives ana the Senate, respectively, and as such they
shall be considered as part of the rules of each House, respectively,
or of that House to which they specifically apply, and such rules
shall supersede other rules only to the extent that they are inconsistent therewith; and
(2) with full recognition of the constitutional right of either
House to change such rules (so far as relating to such House),
at any time, in the same manner and to the same extent as in the
case of any other rule of such House.
TITLE IV—GENERAL PROVISIONS
NONDISCRIMINATION

SEC 401. (a) No person in the United States shall on the ground of 15 USC 3151.
sex, age, race, color, religion, national origin or handicap be excluded
from participation in, be denied the benefits of, or be subjected to
discrimination under any piogram or activity funded pursuant to
the implementation of this Act, including membership in any structure created by this Act.
(b) Whenever the Secretary of Labor determines that a recipient Noncompliance,
of funds made available pursuant to this Act has failed to comply notification.
with subsection (a), or an applicable regulation, the Secretary shall
notify the recipient of the noncompliance and shall request such
recipient to secure compliance. If within a reasonable period of time. Remedies
not to exceed sixty days, the recipient fails or refuses to secure compliance, the Secretary of Labor may—
(1) refer the matter to the Attorney General with a recommendation that an appropriate civil action be instituted;
(2) exercise the powers and functions provided by title V I of
the Civil Rights Act of 1964 (42 IJ.S.C. 2000d et seq.) or
(3) take such other action as may be provided by 1 aw.
(c) When a matter is referred to the Attorney General pursuant
to subsection (b), or whenever the Attorney General has reason to
believe that a recipient is engaged in a pattern or practice in violaiion
of the provisions of this section, the Attorney General may bring a
civil action in the appropriate United States district court for any
and all appropriate relief.

92 STAT. 1908
Enforcement,
analysis.
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PUBLIC LAW 95-523—OCT. 27, 1978
(d) To assist and evaluate the enforcement of this section, and the
broader equal employment opportunity policies of this Act, the Secretary of Labor shall include, in the annual Employment and Training
Eeport of the President provided under section 705(a) of CETA,
a detailed analysis of the extent to which the enforcement of this
section achieves positive results in both the quantity and quality of
jobs, and for employment opportunities generally.
• "

LABOR

STANDARDS

SEC. 402. (a) Any new program enacted and funded pursuant to
the implementation of this Act shall, subject to any limitations on
maximum annual compensation as may be provided in the law authorizing such programs, provide that persons employed are paid equal
wages for equal work, and that such policies and programs create a
net increase in employment through work that would not otherwise
be done or are essential to fulfill national priority purposes.
(b) Any person employed in any reservoir project enacted and
funded pursuant to the implementation of section 206(c) (1), or in
any other job created pursuant to implementation of this Act, shall,
subject to any limitations on maximum annual compensation as may
be provided in the law authorizing such programs, be paid not less
than the pay received by others performing the same type of work
for the same employer, and in no case less than the minimum wage
under the Fair Labor Standards Act of 1938. No person employed m
any reservoir project enacted and funded pursuant to implementation
of section 206(c) (1) shall perform work of the type to which the
Davis-Bacon Act (40 U.S.C. 276a—^276a-5) applies, except as otherwise may be specifically authorized by law.
(c) Any recommendation by the President for legislation to implement any program enacted pursuant to the provisions of this Act,
requiring the use of funds under this Act, and submitted pursuant to
the requirements of this Act, shall contain appropriate wage provisions based upon existing wage standard legislation.
Approved October 27, 1978.

LEGISLATIVE HISTORY:
HOUSE REPORTS: No. 95-895, Pt. I (Comm. on Education and Labor) and Pt. II
(Comm. on Rules).
SENATE REPORTS: No. 95-1177 accompanying S. 50 (Comm. on Human Resources)
and (Comm. on Banking, Housing, and Urban Affairs). ,
CONGRESSIONAL RECORD, Vol. 124 (1978):
Mar. 8, 9, 15, 16, considered and passed House.
Oct. 10, 11, 13, considered and passed Senate, amended.
Oct. 15, House agreed to Senate amendment.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 14, No. 43:
Oct. 27, Presidential statement.