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Originally Processed With FOIA(s): FOIA Number: S S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: Donated Historical Materials Collection/Office of Origin: Frieden, Lex, Collection Series: Government Records Subseries: Federal Laws OA/ID Number: 52004 Folder ID Number: 52004-006 Folder Title: CR [Civil Rights] Restoration Act [Testimony - 1987] Stack: Row: Section: Shelf: Position: G 5 2 1 4 UNITED STATES SENATE COMMITTEE ON LABOR AND HUMAN RESOURCES HEARING ON S. 557 THE CIVIL RIGHTS RESTORATION ACT OF 1987 MARCH 19, 1987 TESTIMONY SUBMITTED BY TED KENNEDY, JR. ON BEHALF OF: Alexander Graham Bell Association for the Deaf American Academy of Child and Adolescent Psychiatry American Association of University Affiliated Programs American Association on Mental Deficiency American Council of the Blind American Diabetes Association American Disabled for Accessible Public Transportation American Foundation for the Blind American Occupational Therapy Association American Physical Therapy Association American Speech-Language-Hearing Association ACLD, An Association for Children and Adults with Learning Disabilities Association on Handicapped Student Service Programs in Postsecondary Education Association for Retarded Citizens/US Association for the Education of Rehabilitation Facility Personnel Center for Law and Social Policy Child Welfare League of America Conference of Educational Administrators Serving the Deaf Cornelia deLange Syndrome Foundation Council for Exceptional Children Council of State Administrators of Vocational Rehabilitation Cystic Fibrosis Foundation Disability Rights Center Disability Rights Education and Defense Fund Disabled American Veterans Disabled But Able to Vote Epilepsy Foundation of America Facing the Challenge Federation for Children with Special Needs Goodwill Industries of America Handicapped Organized Women International Association of Psychosocial Rehabilitation Services Mental Health Law Project National Alliance for the Mentally Ill National Association of the Deaf National Association of Developmental Disabilities Councils National Association for Parents of the Visually Impaired National Association of Private Residential Facilities for the Mentally Retarded National Association of Protection and Advocacy Systems National Association of State Mental Health Program Directors National Association of State Mental Retardation Program Directors National Center for Law and the Deaf National Council on Independent Living National Council on Rehabilitation Education National Down Syndrome Congress National Easter Seal Society National Head Injury Foundation National Industries for the Severely Handicapped National Mental Health Association National Multiple Sclerosis Society National Neurofibromatosis Foundation National Organization for Rare Disorders National Organization on Disability National Recreation and Park Association National Rehabilitation Association National Society for Children and Adults with Autism National Spinal Cord Injury Association Paralyzed Veterans of America People First International SKIP -- Sick Kids (Need) Involved People Spina Bifida Association of America Tourette Syndrome Association United Church of Christ National Commission on Persons with Disabiliti United Cerebral Palsy Associations World Institute on Disability Mr. Chairman and Members of the Committee: Thank you for the opportunity to speak before the Committee today on S. 557, the Civil Rights Restoration Act of 1987. I am speaking on behalf of my organization, Facing the Challenge and sixty-five national organizations which are dedicated to securing equal opportunity for the 36 million Americans who have disabilities. Today I represent people who have all types of disabilities -- people who are visually impaired, deaf, physically disabled, mentally retarded and people who have hidden disabilities such as epilepsy, cancer, head injury and mental illness. No matter what our disability is, we all have experienced some form of discrimination and we all depend on Section 504 to provide basic protections to guarantee our civil rights in federally assisted and conducted programs. The passage of Section 504 in 1973 was a historic event for all disabled Americans. For the first time Congress recognized that people with disabilities, like minorities and women, were subject to discrimination and were entitled to basic civil rights protections -- the promise of equal citizenship. This represented a major shift in disability public policy and a fundamental challenge to traditional notions about disability. No longer would the invisibility of disabled people be taken for granted in this country and no longer would a life of charity be the only option for people with disabilities. Page 2 Historically the inferior economic and social status of disabled people was accepted as an inevitable consequence of their disability. Section 504's anti-discrimination language demonstrates Congress' understanding that many of the problems disabled people face are not inevitable but are instead the result of discriminatory policies and practices. Since the enactment of Section 504 American society has been transformed. Disabled people are no longer "out of sight, out of mind", shut away in institutions, nursing homes and segregated schools and programs. Because of Section 504, people with disabilities are beginning to take their place in the mainstream of American life. The gains are impressive -- but we are only just beginning -- the path to equality is long. We are here today because we believe that the Supreme Court's Grove City College decision hopelessly obstructs this path. Let me emphasize that there is no doubt that the Grove City decision fully applies to Section 504 and that it extends beyond education. It is astounding to me that some still claim that the negative effects of Grove City will be cured by narrow legislation which addresses only Title IX or only education programs. We must remember that the same day the Court issued the Grove City decision, it also issued Consolidated Rail Corporation V. Darrone. This was a Section 504 case involving employment discrimination Page 3 by a railway corporation. The Court explicitly held that its narrow interpretation of "program and activity" in Grove City applied with full force to Section 504. Employers, like other members of the general public, hold stereotypes and prejudices about disabled people which impede their ability to objectively evaluate the qualifications of applicants or workers with disabilities. Stereotypes and prejudices rather than handicaps themselves are the most potent barriers to equal employment opportunity. Often the image of what disabled people "should do" or "can do" has no basis in reality. In a recent survey of 23 local government jurisdictions the following medical standards were revealed: All cities and counties impose restrictions of various kinds regarding the hiring of persons with past or present epileptic conditions None of the jurisdictions was willing to hire blind applicants The written standard for one jurisdiction prohibits the hiring of an amputee for any job unless he or she makes use of a prosthesis, even though it may not be required for success on the job Another county will not hire an applicant for any job if he or she has lost a leg, regardless of the job-relatedness of this impairment Many jurisdictions exclude applicants with a history of cancer. Page 4 I have talked to hundreds of disabled people who have been denied jobs for which they were qualified, because of antiquated and archaic medical standards and medieval attitudes and stereotyping, people who are denied admission to education programs -- pre-school to postsecondary because "someone" had determined that they could not be educated and thousands of people who are literally prisoners in their homes because there is no accessible transportation -- and perhaps the most significant of all are those who have been silenced --- thousands who accept as their fate the inaccessibility and discrimination which denies them the right to move in society -- to contribute -- to belong. People with disabilities prefer equal opportunity to special treatment and charity. Consider for example the woman who has had epilepsy since 1965, who was denied employment by a large corporation solely on the basis that the company had a blanket policy preventing anyone with epilepsy from being hired for that particular job; Or, the young woman who is visually impaired and who was accepted into dental school but was denied auxiliary aids She was forced to drop out. She then reenrolled in a dental school that provided her with an accommodation. She is now completing her studies and is on the Dean's List; Or, the group home which was denied zoning permits because the local zoning commission did not want people who are mentally Page 5 retarded living in a certain part of town; Or the man who was denied a job in a drug treatment center because he was deaf. Prior to the Grove City decision each of these cases would have been investigated by the appropriate administrative agency or would have been litigated in court. But instead, each case was either dropped by the administrative agency or dismissed by the courts. This does not begin to tell the story. The Congressional mandate which provided broad anti-discrimination protection to 36 million Americans with disabilities is being destroyed by the courts and the federal agencies charged with its enforcement because of the Grove City decision. Court and agency decisions such as the ones I mentioned require the disabled individual or the regulatory agency to trace the federal dollar to the discriminatory act. Federal agencies now spend taxpayers' dollars following the flow of federal dollars instead of doing what the law requires them to do -- investigate complaints of discrimination. Is this what this Committee and Congress intended when you passed Section 504 in 1973? In the last four years I have traveled across this country talking to people with disabilities and parents of disabled children about their lives. I am here to report that, contrary to what the Reagan Administration believes, we do not live in Page 6 a discrimination-free society and contrary to what Mr. Reynolds stated during the hearing in the 99th Congress, we are not at the "brink of victory" in securing integration and equal opportunity for all Americans with disabilities. Disabled people continue to be the most unemployed, underemployed, and the poorest citizens in this nation. The cost of employment discrimination is tremendous to disabled individuals and to society at large. Now is the time for Congress to act. For three years opponents of this bill have clouded the issues. The 36 million disabled Americans I speak for today cannot wait any longer. We are not asking Congress to extend any protections. We are only asking Congress to stop the practice of federal dollars being used to support discrimination. F. : A decade of great progress for disabled Americans has come to a halt and the promise of equal citizenship extended by Congress in 1973 is still unfulfilled and will continue to be stripped away by the courts and federal agencies if the Civil Rights Restoration Act is not passed by this Congress. 1267 to pull back from a is the single worst example of statutory language I have ever seen. Laws ought to be as clear as they can be made, and to include in them regulatory language that is subject to interpretation varying from department to department. and from admin- istrator to administrator. and from court to court. is a prescription for confusion un- paralleied in my experience. If nothing else is changed in this bill. that language should be discarded. The regulation in question contain requirements and provision for what are usu- GOVERNMENT AND ally called goals and quotas for minority hiring and advancement. Including them makes it imperative to include in the legislation careful definitions of what consti- tutes status in a minority group. Vice President for Academic We have already seen. for example. that where there are minority business set- I would like to thank you asides in some federal contract requests. non-minority businesses attempt to get in It is critically important on the action. The plain fact is that when government allocates benefits on the basis on this legislation. admitted We on of race. ethnicity or gender or other irrelevant criteria, individuals will attempt to That before all the implica- much is qualify under those criteria. Someone is going to have to decide, under this legisla- tion. who is black, who is Hispanic, and so on. It may be easiest to decide who is a man and who is a woman. but as Renee Richards should have taught us, even that legislation was proposed last is chancey at times. City decision of the perfect. Supreme that I assume that if this legislation passes, it will necessary to establish some form of was immutable. Ethnic and Racial Classification Commission, charged with making these tricky judgments. In fact, the Committee may wish to consider the need for such a commis- bill before us. designed to sion before reporting this legislation to the full House. At the very least, it should told that there will be no provide the courts. who will be called upon to settle the inevitable controversies, suggest that last year's bill with as much guidance as possible as to the criteria which should be used. be which improved. should be addressed I offer that suggestion in all seriousness, because something like such a commis- sion will clearly be needed if this legislation passes. However. I hope that the mem- bers of this Committee will think better of this entire line of legislation. The fact is or "aid." There are profound that it would be a mistake to write into law a requirement that race, gender, and that aid to a student equals ethnicity be considered in the allocation of governmental benefits. The 1964 Civil If indirect federal aid equals government. direct Rights Act established the legal equality of all men and women. of whatever race, vone of the who provides goods and color. creed. or ethnic group. That equality is enforceable in the courts with respect to individuals. and such enforcement should be vigorous and permanent. But rights Loans. Social Security checks. inhere in individuals. They do not belong to groups. To insist on numerically equal government would be subject outcomes in every aspect of our society is to grant to the government the kind of procedures of the federal bu- absolute power associated with totalitarian states. The temptation is great, but if we but there is even some are to remain a free nation, it is a temptation that must be resisted. to an individual or an in- I urge the Committee and the Congress to reject the philosophical position that underlies this legislation. and to insist that our laws remain colorblind. The mis- preserving some areas of our takes of our past should not lead us into even greater mistakes in the future. will be no such areas if this is meant by the term "aid." The CHAIRMAN. The next witness is Mr. Mark de Bernardo, man- from federal intervention is by ager of Labor Law, Chamber of Commerce of the United States. there needs to be an exclusion Mr. de Bernardo, we welcome you. an entire university campus if STATEMENT OF MARK A. de BERNARDO. MANAGER OF LABOR of the school, but it is quite a program run by a compa- LAW, CHAMBER OF COMMERCE OF THE UNITED STATES what may be a multi-national department in rural Michigan Mr. DE BERNARDO. Thank you, Mr. Chairman. State government. In the par- I am Mark A. de Bernardo. I am manager of Labor Law for the the "trickle down." "trickle U.S. Chamber of Commerce. I am also committee executive of the "violation." rejected. rather than "dis- chamber's labor relations committee. Accompanying me today, to my right in the first row seats Vir- encouraged promulgated by by this federal legis- ginia Lamp. She is a labor relations attorney for the U.S. Chamber penalties. and in the form of goals, be of Commerce. into play. All that need The chamber welcomes this opportunity to appear before this ployment, in admission. in com- joint hearing, to express our concerns about the Grove City College by understanding inventive federal that bureau- the ac- case, our opposition to the Civil Rights Restoration Act of 1985, and his reversal has been adopted but in our support for the civil rights amendments of 1985. never stand by and acquiesce and in some court decisions. in The chamber also wishes to commend and thank the chairman, the ranking minority members, the members of the committee and of H.R. 700. That is the language subcommittee for conducting these joint hearings, for providing under the four have civil say rights that stat- that this forum for discussion and debate on what is a very critical issue Chairman, I to for all concerned. 1268 The U.S. Chamber, on behalf of its more than 180,000 members, into a posit has a keen interest in our Nation's equal employment and civil pay to part rights laws. The chamber is committed to the principles of equal The CHA employment opportunity and affirmative action and heartened by terrupt. bu the advances which have been made in these areas, particularly in have only the last 25 years. There is no room in America's work places for would appr take a rece discrimination. However, there also is no room for the radical and unwarranted witness in expansion of Federal authority which H.R. 700 represents. Thank yo While the chamber has long espoused a policy of promoting an The com informed and conscientious business community's adherence to [Recess.] both the letter and spirit of title VII and other antidiscrimination The CHA laws, we also are cognizant that extremism in public policy can Mr. de B begin with create more problems than it solves. Extreme Government intervention can be more of a threat to Mr. DE B civil rights and liberties than the safeguard its proponents intend many resp it to be, and in our opinion H.R. 700 typifies such extremism. munity, ar threat to tl To summarize the chamber's position, we oppose H.R. 700. We feel that this legislation substantially and inappropriately expands Second, threat to t the coverage and sanctions of four civil rights statutes. H.R. 700 and its identical Senate companión bill, S. 431, repre- creating a sent a massive expansion of Federal authority over the workplace. tary progr areas. Similarly, these bills would expand greatly Federal control and au- Rather t thority over State and local governments, educational institutions, dollars, CO: and a wide range of private institutions. sector shel The chamber believes that H.R. 700 goes far beyond reversing For exar the Grove City decision. This bill represents a sweeping transforma- volved in tion of our civil rights laws beyond not only the current status of find the bi the law, but also the original intent of Congress and the interpreta- pation sub tion of these laws prior to the Grove City decision. ministrativ The U.S. Supreme Court in the Grove City case dealt with the ities. issue of what limitations should exist on the application of civil The spir rights statutes to educational institutions receiving Federal funds. tentioned, That issue is highly parochial compared to the issues being ad- Perhaps dressed by Congress under the name of Grove City. scope, and What is at stake now is a massive expansion of Federal authority of our cono over the workplace, and farms, State and local governments, A major schools, religious institutions, social clubs, even individuals. nition of H.R. 700 represents a threat to the business community because problem. I of overlapping and contradictory enforcement structures, because While H of duplicative recordkeeping, new private rights of action, and a propriatel: quantum leap in Federal control of private employment practices. determinir This legislation would extend dramatically the coverage of four The bill heretofore specialized civil rights laws to a wide spectrum of em- that it is ( ployers, especially small businesses, who were never covered or in- to delineat tended to be covered in the past Through Moreover, if enacted, H.R. 700 would exacerbate the worst as- down, tric pects of our judicial system, forum shopping, multiple claims, and tial of rad harassment actions. eral autho But ironically, H.R. 700 also represents a threat to the disadvan- The stri taged and underprivileged of our society. chains of : What would be the ultimate response of employers to enactment The pre of H.R. 700? The Chamber fears that employers would be forced what is cle 1269 000 members, into a position whereby the price that employers would be forced to ent and civil pay to participate in Federal programs would be too high. iples of equal The CHAIRMAN. Mr. de Bernardo, the Chair regrets having to in- heartened by terrupt, but there is a vote pending in the House. The Members articularly in have only about 10 minutes to make that vote. For that reason, I ork places for would appreciate you suspending at this time SO the committee can take a recess, a 10-minute recess. And you will be. obviously, the unwarranted witness in the chair at the time that we return. ents. Thank you very much. promoting an The committee is in recess for 10-minutes. adherence to [Recess.] liscrimination The CHAIRMAN. The committee is called to order. lic policy can Mr. de Bernardo was testifying at the time we recessed. We will begin with him. if a threat to Mr. DE BERNARDO. Mr. Chairman, I was just pointing out that in onents intend many respects, H.R. 700 represents a threat to the business com- emism. munity, and listed some of the aspects in which we see it as a H.R. 700. We threat to the business community. ately expands Second, I was pointing out that, ironically, we also see it as a threat to the disadvantaged because of the effect it. would have in S. 431, repre- creating a disincentive for employers to be involved in the volun- he workplace. tary programs, such as programs in the training and education ontrol and au- areas. 1 institutions, Rather than accept the plethora of strings attached to Federal dollars, corporations understandably might retreat into a private ond reversing sector shell to the disadvantage of many. g transforma- For example, handicapped, veterans, and minorities who are in- rent status of volved in job programs which include some Federal funding may he interpreta- find the business community reluctant to participate when partici- pation subjects employers to broadly applied, substantial new ad- ealt with the ministrative costs, compliance reviews, and potential legal liabil- ities. cation of civil The spirit of volunteerism in employers, no matter how well in- federal funds. tentioned, may well be dispirited by this legislation. aes being ad- Perhaps the biggest area of concern for us deals with H.R. 700's scope, and if I could point out a couple of aspects of that in terms eral authority of our concerns. governments, A major problem with last year's legislation was the broad defi- duals. nition of "recipient." This year's legislation does not solve that unity because problem. It merely transfers it to another definition. ures, because While H.R. 700 fails to define "recipient" appropriately or inap- action, and a propriately, it does define "program or activity" for the purposes of ent practices. determining coverage of the four affected statutes. erage of four The bill defines "program or activity" in such a broad fashion :ctrum of em- that it is questionable whether any parameters at all have been set covered or in- to delineate the reach of these laws. Through tracing the flow of Federal dollars through trickle the worst as- down, trickle up, and trickle across, this legislation has the poten- e claims, and tial of radically altering any previous concept or application of Fed- eral authority. the disadvan- The strings attached to Federal funds would thus become chains, chains of an almost indeterminable length. to enactment The precise scope of coverage of H.R. 700 is unclear. However, uld be forced what is clear is that H.R. 700 is far too broad in the range of cover- 1270 which is possible and would be, if enacted, fundamentally PREPARED STA age unfair to business and many other affected parties. I would like to make a note on the funding termination provi- I. Stat sion, well. which we see as being a wrong approach. Earlier as I pointed out that the bill, H.R. 700, if enacted, involved would I am a disincentive for employers to become voluntarily create in programs which we consider to be good government programs, Chamber of ( Executive f programs the same which line benefit of thinking, many. the fact that the breadth of the in- member of ti funding In termination provision is so broad would also affect the nocent and a wide range of programs negatively, as well. Association H.R. 700 eliminates the pinpoint provision and allows the various entire Virginia B. enforcing agencies to withdraw all Federal assistance to the entity Such in broad noncompliance. stroke funding termination would penalize the inno- enti- The I cutting off Federal assistance to a much wider range individuals of this joint } cent, ties and, correspondingly, to a much wider range of the Subcomm: benefiting from those Federal programs. I would also like to make a note on the law pre-Grove City. Judiciary Cc The Civil Rights Restoration Act of 1985 does not restore previ- far College V. } ous beyond the current law, far beyond the concensus interpretation law, in our opinion, at all, but in fact goes far beyond, of Restoration the law prior to the Grove City decision, and far beyond the majori- Civil Rights ty judicial interpretations of congressional intent. If the intent of Congress is to return the law to where it was pre- The C Grove City, H.R. 700 does not do it. In conclusion I would like to state that the Supreme Court's Ranking Minc Grove our City College V. Bell decision could have inequitable ramifica- Subcommittee tions. In this regard, the Chamber of Commerce supports legisla- forum for di tion which would provide for a simple reversal of this decision. We believe that S. 272, the Dole-administration bill, accomplishes all concerne this goal in a fair and appropriate manner. The Civil Rights Restoration Act of 1985, however, is an inappro- priate and unacceptable response to the Grove City decision. The U.S. Chamber opposes H.R. 700 and S. 431 and urges Con- gress not to enact this legislation. Thank you, Mr. Chairman, and members of these committees. 104 S. Ct [Prepared statement of Mark A. de Bernardo follows:] The CHAIRMAN. Thank you. 1271 PREPARED STATEMENT OF MARK A. DE BERNARDO. ON BEHALF OF THE U.S. CHAMBER mentally OF COMMERCE ion provi- I. Statement of Interest ed, would I am Mark A. de Bernardo, Manager of Labor Law for the y involved Chamber of Commerce of the United States. I serve as the Committee programs, Executive for the U.S. Chamber's labor Relations Committee and am a dth of the member of the District of Columbia Bar and the American Bar fect the in- Association labor committees. Accompanying me today is the various Virginia B. Lamp, Labor Relations Attorney for the U.S. Chamber. ) the entire The U.S. Chamber welcomes this opportunity to appear before ze the inno- .nge of enti- this joint hearing of the House Education and Labor Committee and individuals the Subcommittee on Civil and Constitutional Rights of the House Judiciary Committee to express our concerns about the Grove City : City. estore previ- College V. Bell decision , our opposition to the Civil Rights beyond. far Restoration Act of 1985 (H.R. 700/S. 431), and our support for The rpretation of d the majori- Civil Rights Amendments of 1985 (S. 272). re it was pre- The Chamber also wishes to commend and thank the Chairmen, breme Court's Ranking Minority Members, and Members of the Committee and able ramifica- Subcommittee conducting these joint hearings for providing this pports legisla- forum for discussion and debate on what is a very critical issue for decision. all concerned. It is our hope that a full and reasoned examination , accomplishes is an inappro- ecision. and urges Con- committees. 17 104 S. Ct. 1211 (1984). ws:] 1272 of all the issues involved in the Grove City debate and all the H.R. 700 and potential ramifications of the legislative alternatives now under represent a massive consideration will prove well worth the time and effort. workplace. Similar control and authori The U.S. Chamber, on behalf of its more than 180,000 members, institutions and a has a keen interest in our nation's equal employment and civil rights laws. The Chamber 18 committed to the principles of equal The Chamber employment opportunity and affirmative action and heartened by the the Grove City dec: advances which have been made in these areas, particularly in the transformation of last 25 years. There is DO room in America's workplaces for status of the law interpretation of discrimination. However, while the Chamber has long espoused a policy of The U.S. Su promoting an informed and conscientious business community's issue of what limi adherence to both the letter and spirit of Title VII and other rights statutes to anti-discrimination laws, we also are cognizant that extremism in funds. That issue public policy can create more problems than it solves. being addressed by Extreme government intervention can be more of a threat to What is at civil rights and liberties than the safeguard its proponents intend authority over the governments, school it to be. individuals. H.R. 700 typifies such extremism. H.R. 700 It because of overla; II. Summary of the Chamber Position duplicative recor The U.S. Chamber of Commerce opposes The Civil Rights quantum leap in f Restoration Act of 1985 because this legislation substantially and This legislation inappropriately expands the coverage and sanctions of four civil heretofore specia 2/ employers, especi rights statutes. intended to be CC 2/ H.R. 700, if enacted, would amend Title VI of the Civil of Rights the exacerbate the WC of 1964, 42 U.S.C. Sec. 2000d et seq., Title 1681 IX shopping, multipl Act Amendments of 1972, 20 U.S.C. Sec. et U.S.C. seq., Education 504 of the Rehabilitation Act of 1973, 29 42 Section Sec. 794, and The Age Discrimination Act of 1975, U.S.C. Sec. 1601 et seq. 55-121 0 86 - 1273 11 the H.R. 700 and its identical Senate companion bill, S. 431, ow under represent a massive expansion of federal authority over the workplace. Similarly these bills would expand greatly federal control and authority over state and local governments, educational 000 members, institutions and a wide range of private institutions. civil of equal The Chamber believes that H.R. 700 goes far beyond reversing ned by the the Grove City decision. This bill represents a sweeping ly in the transformation of our civil rights laws beyond not only the current ; for status of the law but also the original intent of Congress and the interpretation of these laws prior to the Grove City decision. olicy of The U.S. Supreme Court in the Grove City case dealt with the ity's issue of what limitations should exist on the application of civil id other rights statutes to educational institutions receiving federal tremism in funds. That issue is highly parochial in contrast to the issues being addressed by Congress in the name of "Grove City." a threat to What is at stake now is a massive expansion of federal onents intend authority over the workplace -- and farms, state and local governments, schools, religious institutions, social clubs, even individuals. H.R. 700 represents a threat to the business community because of overlapping and contradictory enforcement structures, duplicative recordkeeping, new private rights of action, and a Rights quantum leap in federal control of private employment practices. tantially and This legislation would extend dramatically the coverage of four : four civil heretofore specialized civil rights laws to a wide spectrum of employers, especially small businesses, who were never covered or intended to be covered. Moreover, if enacted, H.R. 700 will Civil Rights exacerbate the worst aspects of our judicial system -- forum e IX of the shopping, multiple claims, and harassment actions. 81 et seq., 29 U.S.C. '5, 42 U.S.C. 55-121 0 - 86 - 41 1274 Because 1t But H.R. 700 also represents a threat to the disadvantaged too broad and underpriviledged of our society. What would be the ultimate to the ap rights; response of employers to enactment of H.R. 700? The Chamber fears that employers would be forced into a position whereby the "price" Because t particula of participating in federal programs would be too high. Rather than activity" accept the plethora of strings attached to federal dollars, "carefull defined;" corporations understandably might retreat into a private sector shell to the disadvantage of many. For example, handicapped, Because E veterans, and minorities who are involved in job programs which ranchers, include some federal funding may find the business community hailstorr contact 1 reluctant to participate when participation subjects employers to fairness' broadly-applied, substantial new administrative costs, compliance reviews, and potential legal liabilities. The spirit of - When The Civil volunteerism in employers -- no matter how well-intentioned -- may U.S. Chamber directly well be dispirited by this legislation. City debate. The res: The U.S. Chamber in its policy on equal employment The Chamber opportunity: any legislatio federal contro federal jurisd Supports "all reasonable and necessary steps state and loca designed to achieve the goal of equal employment number of ager opportunity for all"; enforcement pr litigation by Believes "governmental action should be carefully plaintiffs 5/ guided to insure fairness and due process of law for all"; and The Civil Rig} Further believes that "grants of authority to with this policy. H. administrative agencies should be strictly construed and carefully defined. The Civil Rights Restoration Act of 1985 contradicts each of these precepts: 4/ S. 2568/H.R. 5490 31 Policy Declarations, adopted by the Chamber of Commerce of the 5/ This policy state United States, P. 134 (emphasis added). Relations Commi becoming the of This statement The Civil Right 1275 disadvantaged Because its scope of coverage and sanctions 1s far too broad, H.R. 700 is unreasonable and unnecessary the ultimate to the appropriate goal of preservation of civil Chamber fears rights; eby the "price" Because the bill is overbroad and ambiguous, righ. Rather than particularly in its definition of "program or activity" which triggers coverage, it is not dollars, "carefully guided," "strictly construed" or "carefully rivate sector defined;" and andicapped, tograms which Because H.R. 700 would, inter alia, subject farmers, ranchers, and other small business men and women to a community hailstorm of new rules and regulations from incidental IS employers to contact with federal dollars, this bill does not "insure fairness"; it insures unfairness. sts, compliance rit of tentioned -- may When The Civil Rights Act of 1984 was introduced, the U.S. Chamber directly addressed the issues presented in the Grove City debate. The result was adoption of the following policy: loyment The Chamber of Commerce of the United States opposes any legislation which would unnecessarily: (1) expand federal control of private employment practices, (2) enlarge y steps federal jurisdiction in the public sector, especially over employment state and local government institutions, (3) increase the number of agencies able to bring equal employment opportunity enforcement proceedings, or (4) create a great surge in be carefully litigation by granting broader rights of action to private process of plaintiffs 5/ The Civil Rights Restoration Act of 1985 clearly conflicts ority to with this policy. H.R. 700 should not be enacted. ictly ntradicts each of 4/ S. 2568/H.R. 5490 Commerce of the 5/ This policy statement was approved by the Chamber's Labor Relations Committee, and subsequently by its Board of Directors, becoming the official policy of the Chamber on July 25, 1984. This statement provided the basis for Chamber oppositions to The Civil Rights Act of 1984, S. 2568/H.R. 5490. 1276 Under Secreta III. Decreased Employer Participation in Federal Programs while responding to Civil Rights Act of A major effect of H.R. 700 on the private sector would be a withdrawal of employers from participation in voluntary federal It is : programs, to the detriment of large segments of our would suppor in a b society. avoidi Cader Employers recognize that H.R. 700 would greatly expand the application of a myriad of current regulations to company activities wight totally unrelated to the operation of a federally-assisted program. Might Because "good faith" involvement in 8 federally funded program would EDerg subject that employer in all of its operations to increased Might reporting requirements, compliance reviews, and potential such legal servi claims, that employer might be likely to withdraw from Might Jobs participation altogether. Migh One critical area where there would be significant adverse Coun Coor consequences would be federal training and employment programs. Although Section 167 of The Job Training Partnership Act (JTPA) In S emp' clearly subjects those entities operating training programs to emp: nondiscrimination prohibitions, JTPA does not extend those act: prohibitions to employing establishments that are in contact with be Although JTPA programs. Under H.R. 700, because such employers would is "a effect of The Ci corporation or any other entity any part of which Civil Rights Res effect on employ extended Federal financial assistance, m6/ coverage would be employment and t extended and employers might not participate for fear of increasing laws. opportunities f opportunities 1: their exposure and liability under the various civil rights Ironical negative effect worthwhile fede 6/ Sections 4, and 6, paragraphs (3) and (4); and Section 5, paragraphs 3, (4) (c) and (d), of H.R. 700 which, in part, defines program or activity" for purposes of coverage. IT Letter from to Senato Resources 1277 Programs Under Secretary of Labor Ford B. Ford expressed this concern while responding to a Senate inquiry about what the effect of The ector would be a Civil Rights Act of 1984 would be on Department of Labor programs: stary federal It is possible, therefore, that S. 2568 would cause employers to avoid federally supported training and employment services in a belief that they were prudently atly expand the avoiding 'new' burdens or compliance risks. Under such circumstances, employers: company activities assisted program. Might not provide training slots for JTPA; aded program would Might not provide training slots for The increased Emergency Veterans Job Training Act (EVJTA); tential legal Might not list jobs with the employment from such service; Might not take advantage of the Targeted Jobs Tax Credit (TJTC); and ificant adverse Might not serve on Private Industry ent programs. Councils (PICs) and State Job Training Coordinating Councils (SJTCCs) 1p Act (JTPA) programs to In sum, (because S. 2568 would "discourage employers' participation" in training and nd those employment services, it would) condemn such in contact with activities to futility. 7/ yers would be "a Although Under Secretary Ford's concerns were about the if which is effect of The Civil Rights Act of 1984, we are convinced that The Civil Rights Restoration Act of 1985 would have the same "chilling" would be effect on employers' willingness to participate in federal lear of increasing employment and training programs. The result would be decreased job opportunities for those in our society whose need for such '1l rights laws. opportunities is greatest. Ironically, if enacted, H.R. 700 would have the unintended negative effect of being counterproductive to the goals of a host of worthwhile federal programs. and Section 5, in part, defines ge. II Letter from the Honorable Ford B. Ford, Under Secretary of Labor to Senator Orgin, Match, Chairman of the Labor and Human Resources Committee dated June 25, 1984, P. 2 (emphasis added). 1278 IV. H.R. 700's Scope: A Major Problem Area (2)(A) educ The Civil Rights Restoration Act of 1985, like its predecessor legislation, The Civil Rights Act of 1984, is unclear in (B) just how far its coverage extends. However, what is clear is that def coverage extends far beyond any parameters previously imagined or Ele suggested. of A major problem with last year's legislation was the broad (3) B definition of "recipient." This year's legislation does not solve that problem, it merely transfers it to another definition. While H.R. 700 fails to define "recipient" -- appropriately or (4) a inappropriately -- it does define "program or activity" for the II purposes of determining coverage of the four affected statutes. F The bill defines "program or activity" in such a broad fashion that it is questionable whether any parameters at all have been set to delineate the reach of these laws. Through tracing the flow of federal dollars through "trickle down," "trickle up," and "trickle across," this legislation has the potential of radically The bill e altering any previous concept or application of federal authority. corporations and organizations The "strings" attached to federal funds would thus become manner consistent chains - chains of an almost indeterminable length. "catchall" provi: The definition of "program or activity" in The Civil Rights Restoration Act of 1985 is: For the purposes of this title, the term "program or activity" means all of the operations of - (1) (A) a department or agency of a State The Civil Ri; or of a local government; or (emphasis (B) the entity of such State or local government that distributes such assistance and each such department or agency (and each other entity) to which the assistance is extended, in the case of assistance to a State or local government; 1279 (2) (A) a university or a system of higher education; or lear in (B) a local educational agency (as that defined in section 198(a) (10) of the i or Elementary and Secondary Education Act of 1965) or other school system; road (3) a corporation, partnership, or solve other private organization; or While (4) any other entity determined in a be manner consistent with the coverage 5. provided with respect to entities described in paragraph (1), (2), or (3) have any part of which 1s extended 8/ 1g the Federal financial assistance. and ally The bill extends these four civil rights statutes to city. corporations and partnerships, as well as to "other private organizations or any other entity," which is "determined in a ome manner consistent" with the other provisions. This represents a "catchall" provision which truly "catches all." - ights 8/ The Civil Rights Restoration Act of 1985, Sections 3 through 6 (emphasis added). 1280 Furthermore, there is no "consistent" manner of determination Is it t because there have been no determinations. Paragraph (4) is such small bus ambiguous and confusing and clearly would require extensive Nume litigation to give it meaning. regt On-1 More importantly, coverage is extended by this section to Over "all of the operations any part of which is extended Federal financial assistance." Can there be any doubt that all of a Dup. corporation's operations -- including its parent companies, holding New companies, subsidiaries, and franchises -- would be covered if "any Could part" of that business received any federal assistance? by virtue of financial ass Under a "trickle down" application, "extended Federal financial assistance" could be interpreted to mean direct or hire the hand indirect extension, further fueling the engine of government access ramps intervention. shelves, or h H.R. 7 Is it the intention of the proponents of the Civil Rights Restoration Act of 1985 to subject - respects: th the corporate Grocery stores which accept food stamps; corporation assistance. Pharmacies which fill Medicare prescriptions; Ranches which participate in federal irrigation projects; Farms which receive federal price supports or disaster loans; Insurance offices administering Medicare or Medicaid 9/ Under para of Section 5 programs; partnership, as a subsidi: Apartment owners accepting rental vouchers; and in some other Other small businesses provision as with the COV. --to extensive government requirements, inspections, and intrusions paragraph (1 considered a by unknown regulators on unknown regulations because there is that nexus, however tenuous, to "federal financial assistance"? enrollment o triggers COV College acce 1281 raination Is it the intention of the proponents of this bill to subject E such small businesses to: Numerous complex new affirmative action rules and regulations; On-site compliance inspections; 10n to Overlapping and contradictory enforcement structures; ederal a Duplicative recordkeeping requirements; and , holding New private rights of action? d 1f "any Could a corner grocery store, because it is an "entity" which by virtue of its acceptance of food stamps is "extended Federal financial assistance" under this bill, 9/ be brought to court to tal hire the handicapped or elderly, or because it failed to provide or access ramps for the handicapped, or widened aisles, lowered ent shelves, or home delivery for the disabled? H.R. 700 raises significant coverage questions in other Rights respects: there appears to be no cutoff of coverage -- up or down the corporate ladder -- to "all of the operations of a corporation (1f) any part (is) extended Federal financial assistance. 1 projects; iisaster 9/ Under paragraph (3) of Sections 3, 4, and 6, and paragraph (4) (c) dicaid of Section 5, a grocery store may be considered a "corporation, partnership, or other private organization," either unto itself or as a subsidiary of a corporate entity which receives federal dollars d in some other capacity; or it may be covered under the catchall provision as "any other entity determined in a manner consistent with the coverage provided with respect to entities described in paragraph (1), (2), or (3) because the "manner consistent" could be intrusions considered analogous to the Grove City College situation whereby re is that enrollment of a single student receiving federal student loans "? triggers coverage of the college itself, despite the fact Grove City College accepts no federal funding directly. 1282 This may well mean that 1f one plant of an automobile H.R. 700 manufacturer participates in a federal jobs program, the entire civil rights sta organization in all its plants and subsidiaries is extended first- sanctions for no time coverage of the four affected civil rights statutes. How is a noncompliance 11 plant manager or supervisor at one plant in one state expected to "the particular know of, much less to comply with, four statutes, the application of noncompliance h: which is based on another plant manager's participation in good faith in a federal jobs program at a plant on the other side of the H.R. 70C country? Moreover, is H.R. 700 intended to trigger coverage from various enforci the parent company of a retail chain to all its franchises or from entire entity : one franchise up the corporate system to the parent company and then termination wor to all other franchises? H.R. 700's "all the operations any assistance to part of which" language suggests that the answer to these questions to a much wide should be "yes." programs. Is this fair to those employers -- or their employees, H.R. 70 stockholders, creditors, and customers? Extension of coverage could assistance whi force sizeable economic expenditures and create significant elastic conce disruption of operations or current personnel practices. noncompliance Funding cut 0 The precise scope of coverage of H.R. 700 is unclear. such terminat However, what is clear is that H.R. 700 is far too broad in the unrelated or range of coverage which is possible and would be, if enacted, fundamentally unfair to businesses and many other affected parties. V. H.R. 700's Funding Termination Provision: The Wrong Approach 10/ For exam 11/ Sections The Civil Rights Restoration Act of 1985 would expand greatly of 198 the federal government's power to deny or terminate financial 12/ "Noncom; assistance. Such funding termination, as provided for in H.R. 700, becaus havin is too broad in application and would penalize too wide a spectrum discr of employers and other beneficiaries of federal programs. is an 1283 == automobile H.R. 700 not only extends substantially the reach of the four gram, the entire civil rights statutes, but it also increases dramatically the is extended first- sanctions for noncompliance under these laws. Currently, statutes. How is a noncompliance is penalized by withdrawal of federal funding from state expected to "the particular program, or part thereof, in which such S, the application of noncompliance has been found. 10/ cipation in good he other side of the H.R. 700 eliminates this "pinpoint provision" and allows the gger coverage from various enforcing agencies to withdraw all federal assistance to the franchises or from entire entity in noncompliance. Such broad stroke funding rent company and then termination would penalize the innocent, cutting off federal perations any assistance to a much wider range of entities, and, correspondingly, T to these questions to a much wider range of individuals benefiting from these federal programs. eir employees, H.R. 700 provides for fund termination "to the particular ion of coverage could assistance which supports such noncompliance, will a novel and significant elastic concept requiring no primary nexus between the entities in ractices. noncompl iance 12/ and entities cut off from federal assistance. Funding cut off ceases to be an equitable or appropriate remedy when ) is unclear. such termination is stretched farther and farther to include :00 broad in the unrelated or remote activities of distant affiliates. e, 1f enacted, er affected parties. : The Wrong Approach 10/ For example, see Title IX, 20 U.S.C. Sec. 1682. 11/ Sections 3(b) (1) and 5(b) of The Civil Rights Restoration Act would expand greatly of 1985. bate financial 12/ "Noncompliance" is used rather than the term "discrimination" ied for in H.R. 700, because an entity can be cited for noncompliance without ever too wide a spectrum having been found to have discriminated or, in fact, without discrimination having been alleged. Grove City College programs. is an example. 1284 The which supports" language of the bill's funding The assert: termination provision is consistent with several other provisions of "broad, institutic the bill in its ethereal, ambiguous, and undefined nature. However, interpretations ha because any federal assistance to part of an organization presumably institution-wide ( enables that organization to shift resources to nonassisted be characterized i programs, any federal funding could be viewed as "supporting" coverage and fund noncompliance, regardless of whether the discriminating operation that the nondiscr: received federal aid directly. federally-funded : 14/ application. VI. The Law: Pre-Grove City Clearly, t H.E. 700, in its "Findings of Congress" opening, states: does not restore (1) the current 1 legislative action is necessary to restore prior to the Grov the prior consistent and long-standing executive branch interpretation and broad, determinations of institution-wide application of those laws às previously administered. 13/ If the int However, the interpretations by the 28 federal executive was pre-Grove Cit agencies which extend federal financial assistance have neither been "consistent" nor "long-standing." Interpretations have, in fact, been highly inconsistent and irregular, and the nature of these interpretations are in such a state of flux, that no principle is "long-standing." 14/ See North Ha (1982); Hi Welfare, 69 104 S.Ct. : 694 F.2d 7: Harvard Co: 456 U.S. 9 Supp. 321 507 F. Sup grounds, 6 Metals Co. 13/ The Civil Rights Restoration Act of 1985, Section 2(2) Sibley, 65 Society of (emphasis added). 1983). Of this issue statutes' program-sp 1285 bill's funding The assertion that executive branch interpretations have been veral other provisions of "broad, institution-wide" is similarly misleading. Although some defined nature. However, interpretations have been construed by the courts to provide for n organization presumably institution wide coverage, the clear majority of court decisions can 5 to nonassisted be characterized as program-specific in their interpretation of ed as "supporting" coverage and fund termination. Numerous federal courts have held scriminating operation that the nondiscrimination provisions of statutes covering federally-funded programs are not institution-wide in their 14/ application. Clearly, therefore, The Civil Rights Restoration Act of 1985 ss" opening, states: does not restore previous law at all but, in fact, goes far beyond: (1) the current law; (2) the consensus interpretation of the law y to restore prior to the Grove City decision; and, (3) the majority judicial standing a and broad, determinations of congressional intent. : those laws as If the intent of Congress is to return the law to where it 28 federal executive was pre-Grove City, H.R. 700 does not do it. istance have neither been tations have, in fact, the nature of these , that no principle is 14/ See North Haven Board of Education v. Bell, 456 U.S. 512 (1982); Hillsdale College v. Department of Health Education and Welfare, 696 F.2d 418 (6th Cir. 1982), vacated and remanded 104 S.Ct. 1673 (1984); Dougherty County School System V. Bell, 694 F.2d 78 (5th Cir., 1982); Rice V. President and Fellows of Harvard College, 663 F.2d 336 (lst Cir., 1981), cert denied, 456 U.S. 928 (1982); University of Richmond V. Bell, 543 F. Supp. 321 (E.D. Va., 1982); Othen V. Ann Arbor School Board, 507 F. Supp. 1376 (E.D. Mich., 1981), affirmed on other grounds, 699 F.2d 309 (6th Cir., 1983); Simpson V. Reynolds Metals Co., Inc., 629 F.2d 1226 (7th Cir., 1980); Brown V. Sibley, 650 F.2d 260 (5th Cir., 1981); and Bachman v. American ;, Section 2(2) Society of Clinical Pathologists, 577 F.Supp. 1257 (D. N.J., 1983). Of course, the U.S. Supreme Court's pronouncement on this issue in the Grove City decision was to interpret such statutes' coverage and fund termination provisions program-specific. 1286 VII. Other Major Business Concerns Regarding H.R. 700 right (A) Policy Concerns Regarding "Big" Government into are Although this statement has focused largely on the shor negative impacts of The Civil Rights Restoration Act of 1985 when on the business community, the Chamber also is very cognizant atte of the bill's negative potential to impact on educational inst institutions, state and local governments, and private or t institutions of all types. This bill represents a major leap in the wrong sac; direction. It raises fundamental questions about the a Vi appropriate reach of the federal government, and Jer. whether federal financial power should be wielded 25 a Cor coercive bludgeon in the name of "civil rights." has aid H.R. 700 is a big government response to a somewhat reg parochial and highly technical legal problem. Whatever the pos appropriate response the U.S. Supreme Court should have had to the Grove City case, this response is legislative overkill, an overreaction which conforms to the premise of those of preser advocates whose solution to every perceived problem is more government, more regulation, more litigation, and more taxpayer dollars. H.R. 700 represents a vehicle for massive government intrusion in private and public institutions. 15/ Grove to (B) Policy Concerns Regarding Civil Rights 16/ "A '( U.S In many respects, H.R. 700 also represents a threat to 17/ Ibid institutional and individual civil rights and liberties -- ironically in light of the intentions of its proponents to protect civil rights. 1287 700 Proponents may force promotion of the civil rights of some at the expense of intrusion into the civil rights of others. The interests at stake are compelling and multiple, and it is largely on the short-sighted to perceive a singular interest as controlling ration Act of 1985 when to do so threatens the "rights" of those who wish to C 1s very cognizant attend independent colleges, the integrity of private on educational institutions 15/ the autonomy of religious organizations, and private or the economic viability of small businesses. The debate over Grove City has, at times, under the the wrong sacrosant and irresistable banner of "civil rights," featured S about the a very real intolerance of the many interests involved. As it, and Jeremy Rabkin, an Assistant Professor of Government at wielded as a Cornell University recently noted, Grove City legislation ghts. has gone "a long way toward transforming federal education aid from an engine of opportunity to an instrument of 16/ e to a somewhat regimentation (such legislation) .17/ em. Whatever the poses grave dangers to tolerance and diversity. it should have had legislative overkill, H.R. 700 would trample the rights of many in the name :ise of those of preserving the rights of some. :d problem is more on, and more ssive government ms. 15/ Grove City College's "transgression," after all, was a desire to maintain its independence, not discrimination. its 16/ "A 'Civil Rights' Snare," Jeremy Rabkin, New Perspectives, The U.S. Commission on Civil Rights, Winter, 1985, p.7. esents a threat to 17/ Ibid, P. 6. and liberties -- its proponents to 1288 (C) Businesses' Concern For Coverage of Educational (D) Institutions B $ While the Chamber is especially concerned about the I scope of application of these statutes to the business implica community, it also is concerned about how broad an impact would b Grove City legislation would have on educational entities. Chamber This concern is magnified by the fact that: employi H.R. 70 businesses are Educators -- Many employers are in the education "business" directly or appeali indirectly, or have extensive educational or concern training programs for their employees, or share with academia funding, faculty, or potenti facilities for such programs as management pay hav seminars or apprenticeship training; to the Schools are Businesses - Many educational would 0 institutions are "businesses" in the full' sense of the term. Furthermore, they may engage in noneducational "businesses" on campus, VIII. The Civ providing housing, book store, restaurant, laundry and other such services, or may run of f-campus businesses as a function of their financial diversification; and While t Restoration Ac Schools are Investors in Business - Finally, decision, we a many colleges and universities have sizeable endowments, monies from which are invested decision may t. commonly in the private sector. Such investments might be considered a sufficient nexus to trigger additional civil rights The Cha coverage to the outside firms under H.R. 700. Amendments of and Orrin Hatc To the extent that coverage of any or all of these S. 272 is an a relationships between business and educational institutions is not specifically delineated, the Chamber S. 272 would E H.R. 700 and t remains deeply concerned. Beyond direct coverage of businesses and coverage achieved through the catchall educational 1I institution-wi provisions of H.R. 700, the Chamber also is troubled by the potential for indirect coverage through H.R. 700's the wake of t! inclusion of educational institutions under its in a realistic definition of "program or activity." - coverage, ever 1289 (D) Special Concerns about H.R. 700's Impact on Small Businesses about the The Chamber is particularly concerned about what the siness implications of The Civil Rights Restoration Act of 1985 an impact would be for small business. Nearly 90 percent of the entities. Chamber's more than 180,000 members are small businesses employing 100 or fewer employees. To the extent that H.R. 700 has a catchy title, is superficially very are appealing, and addresses very real -- and legitimate -- concerns with the Supreme Court's Grove City decision, its potential impact on business, particularly small business, may have beer obscured. To subject small businesses to the regulatory excesses of such extensive requirements would be especially burdensome and unfair. ngage VIII. The Civil Rights Amendments of 1985 laundry pus While the Chamber is convinced that The Civil Rights Restoration Act of 1985 is the wrong response to the Grove City decision, we are sympathetic to the premise that the Supreme Court's e decision may have created potential inequities. The Chamber therefore supports S. 272, The Civil Rights ). Amendments of 1985, introduced in January by Senators Robert Dole and Orrin Hatch and supported by the Reagan Administration. We feel these S. 272 is an appropriate response to the Grove City decision. S. 272 would affect all four civil rights statutes addressed in hamber H.R. 700 and would ensure that anti-discrimination coverage of of educational institutions receiving federal funding would be all institution-wide, not program-specific as 1s currently the law in ed by the the wake of the Grove City decision. S. 272 sets such limitations in B realistic and appropriate manner, 80 as not to overextend coverage, even under an institution-wide application. 1290 The Chamber believes that S. 272 effectively reverses the The CHAIR Grove City decision without the overreach inherent in alternative behalf of the "civil rights" proposals. Conference O! Mr. Taylor. IX. Conclusion STATEMENT FOR NATIC The Supreme Court's Grove City College V. Bell decision could FERENCE ( have inequitable ramifications. Toward this end, the U.S. Chamber Mr. TAYLOR As the Ch: of Comerce supports legislation which would provide for a simple tions that m. reversal of this decision. We believe S. 272, the week, and I ( Dole-Administration bill, accomplishes this goal in a fair and by making a appropriate manner. I am not g that we have but I would 1 The Civil Rights Restoration Act of 1985, however, is an cisms that ha ought to be e insppropriate and unacceptable response to the Grove City decision. First, some failure to un The U.S. Chamber opposes H.R. 700/S. 431, The Civil Rights tinction that hand, and n Restoration Act of 1985, and urges Congress not to enact this distinctions t legislation. In the Ta: say, is ackno which is mis the reason f am quoting- whose funds beneficiaries tices." Now, these port a limita Institution negotiated St by private p Justice Depa injunctions 1 of Federal fu In the cas nocent bene discriminati Now, Con courts unde cases. And what tant distinc funds. Now, seco standing of failure to re ON INATIONAL THE COUNCIL National Council on the Handicapped 800 Independence Avenue, S.W. Suite 814 Washington, D.C. 20591 202-267-3846 voice 202-267-3232 TDD An Independent Federal Agency STATEMENT OF: THE NATIONAL COUNCIL ON THE HANDICAPPED BY: LEX FRIEDEN, EXECUTIVE DIRECTOR BEFORE THE: U.S. SENATE COMMITTEE ON LABOR AND HUMAN RESOURCES DATE: APRIL 1, 1987 STATEMENT OF: THE NATIONAL COUNCIL ON THE HANDICAPPED BY: LEX FRIEDEN, EXECUTIVE DIRECTOR BEFORE THE: U.S. SENATE COMMITTEE ON LABOR AND HUMAN RESOURCES DATE: APRIL 1, 1987 The National Council on the Handicapped appreciates this opportunity to present its views on the principles espoused in the proposed Civil Rights Restoration Act As you are aware, the Council is an independent Federal agency comprised of 15 members appointed by the President and confirmed by the Senate. Congress has statutorily charged the Council with reviewing all laws, programs and policies of the Federal Government which affect persons with disabilities and making such recommendations as it deems necessary to the President, the Congress, the Rehabilitation Services Administration, the National Institute on Disability and Rehabilitation Research, and other Federal agencies and officials. Although many government agencies relate to the needs and concerns of people with disabilities, the National Council on the Handicapped is the only Federal agency with such cross-cutting responsibility for disability issues -- regardless of age, disability type, employment potential, economic need, or other individual circumstances. -1- In its 1986 report to Congress and the President, Toward Independence, the Council commented on the central premise of the proposed Civil Rights Restoration Act: any person or agency that wishes to obtain Federal grant funds should be required to avoid or cease discriminating in all of its activities. Conversely stated, the Federal Government should not provide financial assistance to any person or agency that engages in discrimination in any part of its operations or activities. (Topic Paper on "Equal Opportunity Laws,' Appendix, p. A-9) In pursuing its statutory mandate of advising the Congress and the President on disability issues, the Council has held forums with people with disabilities all around the country. Time after time, individuals with disabilities have told the Council about the egregious discrimination they encounter in their daily lives -- discrimination in jobs, in elementary and secondary education, in higher education, in health services, in recreation, in transportation, in housing, in public accommodations, in obtaining the benefits of public programs and services, and in virtually every other facet of American life. On numerous occasions, Americans with disabilities have declared to the Council that their number one priority is for strong and comprehensive civil rights laws protecting them from discrimination based upon their disabilities. That such views are representative of Americans with disabilities generally is underscored by one of the findings of the 1986 Harris nationwide poll of disabled Americans; Louis Harris and Associates reported as follows: When it comes to how disabled persons should be treated under the law, a near consensus emerges. Three out of every -2- four (75%) disabled persons believe that civil rights laws that protect minorities against discrimination should also protect them. Only 17% disagree. (Louis Harris and Associates, Survey of Disabled Americans, p. 112) The primary Federal statute prohibiting discrimination on the basis of handicap, Section 504 of the Rehabilitation Act of 1973, has had a tremendous impact in reducing discrimination against persons with disabilities. Since the decision of the Supreme Court of the United States in Grove City College V. Bell in 1984, however, the effect of Section 504 has been significantly blunted. In the case of Consolidated Rail Corporation V. Darrone (104 s.ct. 1248 (1984) ) decided on the same day as the Grove City ruling, the Supreme Court announced that the limitations upon civil rights coverage established in Grove City apply to Section 504 cases as well (104 s.ct. at p. 1255). The Darrone case involved a claim of discrimination in In the Council's opinion, this suggests that employment. The Supreme Court, thus, made clear on the very day it issued the Grove City decision that the limitations established in Grove City are not confined as some have argued to the context of higher education. The Council is aware of numerous types of situations affected adversely by the limitations imposed by the Grove City and Darrone rulings. Examples include: o A man with multiple sclerosis was fired because of his disability from a job in a state office of probation and parole which receives substantial Federal grants, but not for the specific job slot the man occupied O Prevent A college athlete is not allowed to participate in the worls in intramural basketball program because of a visual impairment; the intercollegiate program of the college athletic program receives substantial amounts of Federal financial assistance and the student is the recipient of Federal student loans. -3- coverage of Section 504 and the other civil rights laws to their status before the Supreme Court's ruling in the Grove City case. The Supreme Court of the United States has noted recently that discrimination against persons with disabilities is often rooted in "simple prejudice," "archaic attitudes and laws,' and "erroneous but nevertheless prevalent perceptions about the handicapped" (School Board of Nassau County V. Arline, slip op. at pp. 4-5). Some such archaic attitudes and erroneous perceptions have been the source of concern about the been implications of the Civil Rights Restoration Act as it applies to discrimination against persons with disabilities. One misconcept ion is that employers are opposed to statutory prohibitions of employment discrimination against persons with disabilities. Louis Harris and Associates recently conducted a national poll of employers (representing equal subgroups of small, medium, and large businesses) to determine their opinions on such issues. By a substantial majority, employers recognized the need and indicated their support for nondiscrimination provisions protecting individuals with disabilities. Three-fourths of company managers interviewed reported that they believe that persons with disabilities often encounter job discrimination, and over 70% stated that civil rights laws should protect persons with disabilities. concern A related misperception is that it is very burdensome for employers to provide equal employment opportunities for persons with disabilities. The recent Harris poll of employers has reaffirmed prior studies that have consistently found that -5- persons with disabilities make good or better than average employees. Based upon employers' responses, the Harris organization concluded, "Overwhelming majorities of managers give disabled employees a good or excellent rating on their overall job performance," and further, "Nearly all disabled employees do their jobs as well or better than other employees in similar jobs." Employees with disabilities were rated as good or better than their nondisabled counterparts in regard to willingness to work hard, reliability, attendance and punctuality, productivity, desire for promotion, ability to take supervision, and leadership ability. What about the costs of employing a person with a disability? Are job modifications for employees with disabilities very costly? The Council has examined existing studies of workplace accommodations provided for individuals with disabilities and concluded that accommodations are usually minor and inexpensive (see Toward Independence, Appendix, p. A-48). A 1982 Department of Labor study of workplace accommodations concluded that accommodation is "no big deal." The Harris poll of employers verifies the results of the earlier studies; the poll found large majorities of managers (approximately 75%) reporting that the costs of making accommodations are not expensive. While nearly one-half of companies reported that they had made some worksite modifications, an overwhelming majority stated that the costs of accommodations rarely drives the cost of employing a person with a disability above the average range of costs for other employees. -6- The notion that nondiscrimination requirements for persons with disabilities are overly burdensome for small businesses is further fueled by other erroneous perceptions. Some have argued that "Mom and Pop grocery stores" and "corner drugstores" will be saddled with the duty to make extensive and prohibitively expensive modifications of their premises to achieve accessibility for persons with disabilities. Such hypotheticals are based upon a serious misunderstanding of Section 504 and its application. In the first place, Section 504, with or without the Restoration Act, applies only to recipients of Federal financial assistance. Few corner grocery stores or small pharmacies receive such funding Suggestions that the acceptance of food stamps or the receipt of Medicare reimbursement for prescription drugs could trigger the application of Section 504 are totally groundless. The Council has never heard nor been apprised of any case in which Section 504 coverage was predicated upon the receipt of food stamps or prescription reimbursement by a small business. Moreover, it is our understanding that the "Rule of Construction" language in the proposed Restoration Act is intended to specifically preclude the possibility of any such interpretation. Secondly, those small businesses that do qualify as recipients of Federal financial assistance are subject to the "small provider" exceptions of Section 504. Since their original issuance, Section 504 regulations have included provisions exempting small providers (i.e., agencies with fewer than fifteen employees) from certain requirements, including the obligation to make significant alterations to existing -7- facilities to achieve accessibility and to comply with recordkeeping and reporting requirements. This exception for small providers is specifically retained in the current version of the Restoration Act as it relates to Section 504. The specter of Section 504 placing onerous and excessive burdens upon small businesses is further dispelled when one understands that Section 504 only requires reasonable modifications. Both the regulations and the court cases that have applied Section 504 have made it clear that the statute only requires the making of reasonable accommodations and alterations for the benefit of an individual with a disability; unduly burdensome or unreasonable changes are not required by Section 504. Finally, the Council wishes to note that many businesses, including Mom and Pop grocery stores and corner drugstores, have been willing to make their facilities accessible to and usable by persons with disabilities. Such changes have not proven to be exorbitantly expensive nor disruptive to business. Making facilities architecturally accessible benefits not only persons with disabilities but also many other customers, including elderly individuals, people pushing strollers and shopping carts, pregnant women, and many others. The Council is aware that many States and local governments have seen fit to mandate architectural accessibility as part of their building codes and ordinances. Obviously, architectural accessibility is not an impossible or unachievable goal. -8- In the Council's view, our entire society benefits from initiatives to secure increased opportunities for persons with disabilities. At the very least, citizens with disabilities are entitled to have Section 504 -- the primary statute that protects them from discrimination -- restored to the modest scope of coverage that it had prior to being severely restricted as a resul the Grove City decision. [This document has not been subjected to the A-19 Executive Branch review process. The views contained in this testimony do not necessarily represent those of the Administration.] -9- O A person who once had an epileptic seizure was excluded from a state job because of a rule against hiring people with a history of epilepsy; the department where the job is located receives Federal grants, but these funds cannot be traced directly to the job for which the individual applied. Crop A university Transun which receives a variety of Federal grants and student loan funds refuses to admit a woman to its seminary program because she is a quadriplegic. A public school teacher is refused a teaching position because she has a visual impairment; the school system receives a variety of Federal funds, which can even be traced to the particular school, but the music department in which the particular job was located does not receive Federal funds. In each of these situations, the individuals with disabilities would have been protected from discrimination prior to the Grove City decision, but now they are left without under Section 504 recourse against the blatant and despicable acts of discrimination they have suffered. If our Nation's commitment to equality of opportunity for its citizens is to have any meaning, the Council believes that Congress must restore Section 504 and other civil rights laws to the breadth of coverage that they had prior to the Grove City and Darrone decisions. The Council has noted, in its Toward Independence report, that, even without the Grove City narrowing of the scope of Section 504, persons with disabilities have much less protection against discrimination than under civil rights laws protecting other groups. At some time in the future, the Council would Baman like the opportunity Provide to discuss with this Committee a more the possibility of pursuing comprehensive Anh approach to prohibiting the pervasive discrimination faced by persons with disabilities. But the Council believes that an absolutely necessary first step is to return the scope of -4- ON COUNCIE THE RANDICAPP National Council on the Handicapped 800 Independence Avenue, S.W. NATIONAL Suite 814 Washington, DC 20591 202-453-3846 An Independent Federal Agency March 30, 1987 To: Branden Blum, Legislative Reference, OMB From: Lex Frieden, Executive Director Subject: Attached Material Please find attached, for your information, testimony which the National Council on the Handicapped will present before the Senate Committee on Labor and Human Resources on Wednesday, April 1, 1987. As you know, the Council was asked to testify after noon today. A copy of our letter of request to testify is also attached for your information. We would welcome any comments or suggestions you may have on this testimony. Attachments STATEMENT OF: THE NATIONAL COUNCIL ON THE HANDICAPPED BY: LEX FRIEDEN, EXECUTIVE DIRECTOR BEFORE THE: U.S. SENATE COMMITTEE ON LABOR AND HUMAN RESOURCES DATE: APRIL 1, 1987 The National Council on the Handicapped appreciates this opportunity to present its views on the principles espoused in the proposed Civil Rights Restoration Act. As you are aware, the Council is an independent Federal agency comprised of 15 members appointed by the President and confirmed by the Senate. Congress has statutorily charged the Council with reviewing all laws, programs and policies of the Federal Government which affect persons with disabilities and making such recommendations as it deems necessary to the President, the Congress, the Rehabilitation Services Administration, the National Institute on Disability and Rehabilitation Research, and other Federal agencies and officials. Although many government agencies relate to the needs and concerns of people with disabilities, the National Council on the Handicapped is the only Federal agency with such cross-cutting responsibility for disability issues -- regardless of age, disability type, employment potential, economic need, or other individual circumstances. -1- In its 1986 report to Congress and the President, Toward Independence, the Council commented on the central premise of the proposed Civil Rights Restoration Act: any person or agency that wishes to obtain Federal grant funds should be required to avoid or cease discriminating in all of its activities. Conversely stated, the Federal Government should not provide financial assistance to any person or agency that engages in discrimination in any part of its operations or activities. (Topic Paper on "Equal Opportunity Laws," Appendix, p. A-9) In pursuing its statutory mandate of advising the Congress and the President on disability issues, the Council has held forums with people with disabilities all around the country. Time after time, individuals with disabilities have told the Council about the egregious discrimination they encounter in their daily lives -- discrimination in jobs, in elementary and secondary education, in higher education, in health services, in recreation, in transportation, in housing, in public accommodations, in obtaining the benefits of public programs and services, and in virtually every other facet of American life. On numerous occasions, Americans with disabilities have declared to the Council that their number one priority is for strong and comprehensive civil rights laws protecting them from discrimination based upon their disabilities. That such views are representative of Americans with disabilities generally is underscored by one of the findings of the 1986 Harris nationwide poll of disabled Americans; Louis Harris and Associates reported as follows: When it comes to how disabled persons should be treated under the law, a near consensus emerges. Three out of every -2- four (75%) disabled persons believe that civil rights laws that protect minorities against discrimination should also protect them. Only 17% disagree. (Louis Harris and Associates, Survey of Disabled Americans, p. 112) The primary Federal statute prohibiting discrimination on the basis of handicap, Section 504 of the Rehabilitation Act of 1973, has had a tremendous impact in reducing discrimination against persons with disabilities. Since the decision of the Supreme Court of the United States in Grove City College V. Bell in 1984, however, the effect of Section 504 has been significantly blunted. In the case of Consolidated Rail Corporation v. Darrone (104 s.ct. 1248 (1984)), decided on the same day as the Grove City ruling, the Supreme Court announced that the limitations upon civil rights coverage established in Grove City apply to Section 504 cases as well (104 s.ct. at p. 1255). The Darrone case involved a claim of discrimination in olt employment. Supreme Court, thus made clear on the very day The That if OPPens imprid it issued our the Grove Navion City decision that that the limitations established in Grove City are not confined, as some have argued, to the context of higher education. The Council is aware of numerous types of situations affected adversely by the limitations imposed by the Grove City and Darrone rulings. Examples include: O A man with multiple sclerosis was fired because of his disability from a job in a state office of probation and parole which receives substantial Federal grants, but not for the specific job slot the man occupied. o A college athlete is not allowed to participate in the intramural basketball program because of a visual impairment; the intercollegiate program of the college athletic program receives substantial amounts of Federal financial assistance and the student is the recipient of Federal student loans. -3- O A person who once had an epileptic seizure was excluded from a state job because of a rule against hiring people with a history of epilepsy; the department where the job is located receives Federal grants, but these funds cannot be traced directly to the job for which the individual applied. O A university which receives a variety of Federal grants and student loan funds refuses to admit a woman to its seminary program because she is a quadriplegic. O A public school teacher is refused a teaching position because she has a visual impairment; the school system receives a variety of Federal funds, which can even be traced to the particular school, but the music department in which the particular job was located does not receive Federal funds. In each of these situations, the individuals with disabilities would have been protected from discrimination prior to the Grove City decision, but now they are left without recourse against the blatant and despicable acts of discrimination they have suffered. If our Nation's commitment to equality of opportunity for its citizens is to have any meaning, the Council believes that Congress must restore Section 504 and other civil rights laws to the breadth of coverage that they had prior to the Grove City and Darrone decisions. The Council has noted, in its Toward Independence report, that, even without the Grove City narrowing of the scope of Section 504, persons with disabilities have much less protection against discrimination than under civil rights laws protecting other groups. At some time in the future, the Council would like the opportunity to discuss with this Committee the possibility of pursuing a more comprehensive approach to prohibiting the pervasive discrimination faced by persons with disabilities. But the Council believes that an absolutely necessary first step is to return the scope of -4- coverage of Section 504 and the other civil rights laws to their status before the Supreme Court's ruling in the Grove City case. The Supreme Court of the United States has noted recently that discrimination against persons with disabilities is often rooted in "simple prejudice,' " "archaic attitudes and laws," and "erroneous but nevertheless prevalent perceptions about the handicapped" (School Board of Nassau County V. Arline, slip op. at pp. 4-5). Some such archaic attitudes and erroneous perceptions have been the source of concern about the implications of the Civil Rights Restoration Act as it applies to discrimination against persons with disabilities. One misconception is that employers are opposed to statutory prohibitions of employment discrimination against persons with disabilities. Louis Harris and Associates recently conducted a national poll of employers (representing equal subgroups of small, medium, and large businesses) to determine their opinions on such issues. By a substantial majority, employers recognized the need and indicated their support for nondiscrimination provisions protecting individuals with disabilities. Three-fourths of company managers interviewed reported that they believe that persons with disabilities often encounter job discrimination, and over 70% stated that civil rights laws should protect persons with disabilities. A related misperception is that it is very burdensome for employers to provide equal employment opportunities for persons with disabilities. The recent Harris poll of employers has reaffirmed prior studies that have consistently found that -5- persons with disabilities make good or better than average employees. Based upon employers' responses, the Harris organization concluded, "Overwhelming majorities of managers give disabled employees a good or excellent rating on their overall job performance," and further, "Nearly all disabled employees do their jobs as well or better than other employees in similar jobs." Employees with disabilities were rated as good or better than their nondisabled counterparts in regard to willingness to work hard, reliability, attendance and punctuality, productivity, desire for promotion, ability to take supervision, and leadership ability. What about the costs of employing a person with a disability? Are job modifications for employees with disabilities very costly? The Council has examined existing studies of workplace accommodations provided for individuals with disabilities and concluded that accommodations are usually minor and inexpensive (see Toward Independence, Appendix, p. A-48). A 1982 Department of Labor study of workplace accommodations concluded that accommodation is "no big deal." The Harris poll of employers verifies the results of the earlier studies; the poll found large majorities of managers (approximately 75%) reporting that the costs of making accommodations are not expensive. While nearly one-half of companies reported that they had made some worksite modifications, an overwhelming majority stated that the costs of accommodations rarely drives the cost of employing a person with a disability above the average range of costs for other employees. -6- The notion that nondiscrimination requirements for persons with disabilities are overly burdensome for small businesses is further fueled by other erroneous perceptions. Some have argued that "Mom and Pop grocery stores" and "corner drugstores" will be saddled with the duty to make extensive and prohibitively expensive modifications of their premises to achieve accessibility for persons with disabilities. Such hypotheticals are based upon a serious misunderstanding of Section 504 and its application. In the first place, Section 504, with or without the Restoration Act, applies only to recipients of Federal financial assistance. Few corner grocery stores or small 5145 pharmacies receive such funding. Suggestions that the acceptance of food stamps or the receipt of Medicare reimbursement for prescription drugs could trigger the application of Section 504 are totally groundless. The Council has never heard nor been apprised of any case in which Section 504 coverage was predicated upon the receipt of food stamps or prescription reimbursement by a small business. Moreover, it is our understanding that the "Rule of Construction" language in the proposed Restoration Act is intended to specifically preclude the possibility of any such interpretation. Secondly, those small businesses that do qualify as recipients of Federal financial assistance are subject to the "small provider" exceptions of Section 504. Since their original issuance, Section 504 regulations have included provisions exempting small providers (i.e., agencies with fewer than fifteen employees) from certain requirements, including the obligation to make significant alterations to existing -7- facilities to achieve accessibility and to comply with recordkeeping and reporting requirements. This exception for small providers is specifically retained in the current version of the Restoration Act as it relates to Section 504. The specter of Section 504 placing onerous and excessive burdens upon small businesses is further dispelled when one understands that Section 504 only requires reasonable modifications. Both the regulations and the court cases that have applied Section 504 have made it clear that the statute only requires the making of reasonable accommodations and alterations for the benefit of an individual with a disability; unduly burdensome or unreasonable changes are not required by Section 504. Finally, the Council wishes to note that many businesses, including Mom and Pop grocery stores and corner drugstores, have been willing to make their facilities accessible to and usable by persons with disabilities. Such changes have not proven to be exorbitantly expensive nor disruptive to business. Making facilities architecturally accessible benefits not only persons with disabilities but also many other customers, including elderly individuals, people pushing strollers and shopping carts, pregnant women, and many others. The Council is aware that many States and local governments have seen fit to mandate architectural accessibility as part of their building codes and ordinances. Obviously, architectural accessibility is not an impossible or unachievable goal. -8- In the Council's view, our entire society benefits from initiatives to secure increased opportunities for persons with disabilities. At the very least, citizens with disabilities are entitled to have Section 504 -- the primary statute that protects them from discrimination -- restored to the modest scope of coverage that it had prior to being severely restricted as a result of the Grove City decision. [This document has not been subjected to the A-19 Executive Branch review process. The views contained in this testimony do not necessarily represent those of the Administration.] -9- EDWARD M. KENNEDY, CHAIRMAN CLAIBORNE PELL RHODE ISLAND ORRIN G. HATCH, UTAH HOWARD M. METZENBAUM. OHIO ROBERT T. STAFFORD, VERMONT SPARK M. MATSUNAGA, HAWAII DAN QUAYLE, INDIANA CHRISTOPHER J. DODD, CONNECTICUT STROM THURMOND. SOUTH CAROLINA PAUL SIMON, ILLINOIS LOWELL P. WEICKER. JR., CONNECTICUT TOM HARKIN, IOWA THAD COCHRAN, MISSISSIPPI BROCK ADAMS, WASHINGTON GORDON J. HUMPHREY, NEW HAMPSHIRE United States Senate BARBARA A. MIKULSKI, MARYLAND THOMAS M. ROLLINS, STAFF DIRECTOR AND CHIEF COUNSEL COMMITTEE ON LABOR AND HAYDEN G. BRYAN, MINORITY STAFF DIRECTOR HUMAN RESOURCES WASHINGTON, DC 20510-6300 March 27, 1987 The Honorable Sandra S. Parrino Chairperson National Council on the Handicapped 800 Independence Avenue, S.W. Suite 814 Washington, D.C. 20591 Dear Ms. Parrino: I am writing to request that the National Council on the Handicapped appear before the Senate Committee on Labor and Human Resources at a hearing on S. 557, the Civil Rights Restoration Act of 1987. The hearing will take place on Wednesday, April 1 at 9:30 A.M. in Room SD-430 Dirksen Senate Office Building. The Committee would be happy to hear from you personally, or your designee. Because the legislation will modify Section 504 of the Rehabilitation Act of 1973 in order to ensure that disabled individuals will be fully protected from discrimination in federally-assisted programs and activities, the Committee would appreciate the Council addressing the impact of Section 504 to date on the lives of persons with disabilities. In particular, the Committee would like NCH to comment on the principles of non-discrimination regarding persons with disabilities upon which the provisions of S. 557 are founded. Certainly, the perspective of the National Council on the Handicapped as an independent agency charged with advising Congress on federal disability policy makes your testimony especially relevant to any policy discussion involving Section 504. Please submit your testimony to the Committee no later than March 31st at 9:30 A.M. in order to comply with the Committee rule requiring submission of testimony at least 24 hours in advance of a hearing. hillardy EDWARD M. KENNEDY, CHAIRMAN CLAIBORNE PELL, RHODE ISLAND ORRIN G. HATCH, UTAH HOWARD M. METZENBAUM, OHIO ROBERT T. STAFFORD. VERMONT SPARK M. MATSUNAGA, HAWAII DAN QUAYLE, INDIANA CHRISTOPHER J. DODD, CONNECTICUT STROM THURMOND, SOUTH CAROLINA PAUL SIMON, ILLINOIS LOWELL P. WEICKER, JR., CONNECTICUT TOM HARKIN, IDWA THAD COCHRAN, MISSISSIPPI BROCK ADAMS, WASHINGTON GORDON J. HUMPHREY, NEW HAMPSHIRE United States Senate BARBARA A. MIKULSKI, MARYLAND THOMAS M. ROLLINS, STAFF DIRECTOR AND CHIEF COUNSEL COMMITTEE ON LABOR AND HAYDEN G. BRYAN, MINORITY STAFF DIRECTOR HUMAN RESOURCES WASHINGTON, DC 20510-6300 March 27, 1987 The Honorable Sandra S. Parrino Chairperson National Council on the Handicapped 800 Independence Avenue, S.W. Suite 814 Washington, D.C. 20591 Dear Ms. Parrino: I am writing to request that the National Council on the Handicapped appear before the Senate Committee on Labor and Human Resources at a hearing on S. 557, the Civil Rights Restoration Act of 1987. The hearing will take place on Wednesday, April 1 at 9:30 A.M. in Room SD-430 Dirksen Senate Office Building. The Committee would be happy to hear from you personally, or your designee. Because the legislation will modify Section 504 of the Rehabilitation Act of 1973 in order to ensure that disabled individuals will be fully protected from discrimination in federally-assisted programs and activities, the Committee would appreciate the Council addressing the impact of Section 504 to date on the lives of persons with disabilities. In particular, the Committee would like NCH to comment on the principles of non-discrimination regarding persons with disabilities upon which the provisions of S. 557 are founded. Certainly, the perspective of the National Council on the Handicapped as an independent agency charged with advising Congress on federal disability policy makes your testimony especially relevant to any policy discussion involving Section 504. Please submit your testimony to the Committee no later than March 31st at 9:30 A.M. in order to comply with the Committee rule requiring submission of testimony at least 24 hours in advance of a hearing. Sincerely, Edward billerely M. Kennedy Chairman d had had my first expreme art Cegalizad discrime d annew how it Alt to be and Kinstrated for filing the you don't fuen have the first opportunity to succed Millain of per di have expensient Uni feling along with The withing che fat, data gathered in en You Revis Poll yor th aCH last you slows that only X of Prop Le as have grad from col. The compares to A th of the agu pop, Furthomore fewer than Xr. have fushed is. This Compan 6x96 of the you for Perlaps even more X of those peop cu Cis wCo would every to gots and of those who are sehing crews, To would give up be with in orda to have The opportunity to work - Hatmons any have eneffective rated of A arong people c- dis that rate then any then state Authop in the 45. enough geod help these Days, Employes they. int fund rest Havey Bu of on ployer awarding to He word atlit, employers lete the Organing Royces 165 delter than aug So may Ye dont they his some of onaly 8 mil unless des wakes Lovld wont the upp. to earn a being to feroine undep I sly ? pora or dis Hairs solveyd below they June Sun Oiscrio against - perhaps bagely so since Move City, Same short sightd cour of emp There said at costs to much to prince arrom 70 Uding we the aftacter spite of this Hay asset this Eaterto the contray. a Antine no Lost Havis coses no mr We can't afford to moral or proctical on any Herus the Restor Cut sech to proceck discres It AO in a restrable Odso sechs to why word Condition by pure flor and chyloyers exampts > 15 rup. prondes aroun, qual of resonally and certern types of programs the Cavil on melign Must more learly conert the egmal of pays & dis, equiv to other goups But before J we labe this inf $ histor seq forward, we must Get buck to where we were before June City This the Com fully endores the retained in the CRBA as they real to page L Dis. Reliat 30,000 35th 3650 2 730 00 M Cost ( 250 ,200 z gooo realy 100,600 nie take cincl saved 250 other tappage That a net 1,200 36/60 000, 000, 000 the 4000 blowever the feed is I my exper every practly cegaral Discrim is imp to Ois people, to our sor to the fulure of this great motion of the price on which or for was founded d bobe mack zoyr ago Didn't know the but Joney berned that living @ dr the scinl asim that that who Bas are Not members of onion group a not Dis can only ne ad of her aboutand were exposien College fortunate another unit older, less access considerably note endigatored Syears before 504 Pagra class admin Bill T provided sece MADLE Examily ) we have advised Jus ept of In Oncie to based on on see dev proper by Top We bave not been addred work - informad by Jaftain not have have not bad appoy our see rould be consistent d broke moly wh in an and was 20yr ago when d was C Ander in college, Less than a year after recommage D goodtz to Lpf 0 well bnown onented und their Lottlage cat rides My home Shorty eft 20 my application forms and heard were can, the Dear of Camis who of need Q celler from Q read a form lither stating that my ading bad box Devid of called let from of Corer's to informe my Rejuction and was teo about the reason for not of admitted because, d used a it, Qwards, D must say d was stocked. d was analyzed that ADWOOR on some instit could discribed leginst me stritty on to basis of a a prifical which in the circumstance and Oid not umpel My abidy table whil x had to rentrol Cyte malning a April ingure d learned that this type of Discrim to assanlt was tenfelly logal and that of and be 2m Dismayed tay Regided and scarred by this experience Refinally ON INTERNATE COUNCIL DEPARTMENT APPEC THE HANDICA, National Council on the Handicapped 800 Independence Avenue, S.W. Suite 814 Washington, D.C. 20591 202-267-3846 voice 202-267-3232 TDD An Independent Federal Agency STATEMENT OF: THE NATIONAL COUNCIL ON THE HANDICAPPED BY: LEX FRIEDEN, EXECUTIVE DIRECTOR BEFORE THE: U.S. SENATE COMMITTEE ON LABOR AND HUMAN RESOURCES DATE: APRIL 1, 1987 STATEMENT OF: THE NATIONAL COUNCIL ON THE HANDICAPPED BY: LEX FRIEDEN, EXECUTIVE DIRECTOR BEFORE THE: U.S. SENATE COMMITTEE ON LABOR AND HUMAN RESOURCES DATE: APRIL 1, 1987 The National Council on the Handicapped appreciates this opportunity to present its views on the principles espoused in the proposed Civil Rights Restoration Act. The views I am expressing today are those of the Council and not the Administration. The Administration's views will be presented by the Departments of Justice and Education. As you are aware, the Council is an independent Federal agency comprised of 15 members appointed by the President and confirmed by the Senate. Congress has statutorily charged the Council with reviewing all laws, programs and policies of the Federal Government which affect persons with disabilities and making such recommendations as it deems necessary to the President, the Congress, the Rehabilitation Services Administration, the National Institute on Disability and Rehabilitation Research, and other Federal agencies and officials. Although many government agencies relate to the needs and concerns of people with disabilities, the National Council on the Handicapped is the only Federal -1- agency with such cross-cutting responsibility for disability issues -- regardless of age, disability type, employment potential, economic need, or other individual circumstances. In its 1986 report to Congress and the President, Toward Independence, the Council commented on the central premise of the proposed Civil Rights Restoration Act: any person or agency that wishes to obtain Federal grant funds should be required to avoid or cease discriminating in all of its activities. Conversely stated, the Federal Government should not provide financial assistance to any person or agency that engages in discrimination in any part of its operations or activities. (Topic Paper on "Equal Opportunity Laws," Appendix, p. A-9) In pursuing its statutory mandate of advising the Congress and the President on disability issues, the Council has held forums with people with disabilities all around the country. Time after time, individuals with disabilities have told the Council about the egregious discrimination they encounter in their daily lives -- discrimination in jobs, in elementary and secondary education, in higher education, in health services, in recreation, in transportation, in housing, in public accommodations, in obtaining the benefits of public programs and services, and in virtually every other facet of American life. On numerous occasions, Americans with disabilities have declared to the Council that their number one priority is for strong and comprehensive civil rights laws protecting them from discrimination based upon their disabilities. That such views are representative of Americans with disabilities generally is underscored by one of the findings of the 1986 Harris nationwide poll of disabled Americans; Louis Harris and Associates reported -2- as follows: When it comes to how disabled persons should be treated under the law, a near consensus emerges. Three out of every four (75%) disabled persons believe that civil rights laws that protect minorities against discrimination should also protect them. Only 17% disagree. (Louis Harris and Associates, Survey of Disabled Americans, p. 112) The primary Federal statute prohibiting discrimination on the basis of handicap, Section 504 of the Rehabilitation Act of 1973, has had a tremendous impact in reducing discrimination against persons with disabilities. Since the decision of the Supreme Court of the United States in Grove City College V. Bell in 1984, however, the effect of Section 504 has been significantly blunted. In the case of Consolidated Rail Corporation V. Darrone (104 S.ct. 1248 (1984)), decided on the same day as the Grove City ruling, the Supreme Court announced that the limitations upon civil rights coverage established in Grove City apply to Section 504 cases as well (104 s.ct. at p. 1255). The Darrone case involved a claim of discrimination in employment. In the Council's opinion, this suggests that the limitations established in Grove City are not confined to the context of higher education. The Council is aware of numerous types of situations affected adversely by the limitations imposed by the Grove City and Darrone rulings. Examples include: O A man with multiple sclerosis was fired because of his disability from a job in a state office of probation and parole which receives substantial Federal grants, but not for the specific program in which the man worked. O A college athlete is not allowed to participate in the intramural basketball program because of a visual impairment; the intercollegiate program of the college athletic program receives substantial amounts of Federal financial assistance and the student is the recipient of Federal student loans. -3- A person who once had an epileptic seizure was excluded from a state job because of a rule against hiring people with a history of epilepsy; the department where the job is located receives Federal grants, but these funds cannot be traced directly to the program in which the individual applied for a job. O A public school teacher is refused a teaching position because she has a visual impairment; the school system receives a variety of Federal funds, which can even be traced to the particular school, but the music department in which the particular job was located does not receive Federal funds. In each of these situations, the individuals with disabilities would have been protected from discrimination prior to the Grove City decision, but now they are left without recourse under Section 504 against the blatant and despicable acts of discrimination they have suffered. If our Nation's commitment to equality of opportunity for its citizens is to have any meaning, the Council believes that Congress must restore Section 504 and other civil rights laws to the breadth of coverage that they had prior to the Grove City and Darrone decisions. The Council has noted, in its Toward Independence report, that, even without the Grove City narrowing of the scope of Section 504, persons with disabilities have much less protection against discrimination than under civil rights laws protecting other groups. At some time in the future, the Council intends to provide this Committee with its views regarding a more comprehensive approach to prohibiting the discrimination faced by persons with disabilities. But the Council believes that an absolutely necessary first step is to return the scope of coverage of Section 504 and the other civil rights laws to their status before the Supreme Court's ruling in the Grove City case. -4- The Supreme Court of the United States has noted recently that discrimination against persons with disabilities is often rooted in "simple prejudice, " "archaic attitudes and laws, " and "erroneous but nevertheless prevalent perceptions about the handicapped" (School Board of Nassau County V. Arline, slip op. at pp. 4-5). There have been concerns about the implications of the Civil Rights Restoration Act as it applies to discrimination against persons with disabilities. One concern is that employers are opposed to statutory prohibitions of employment discrimination against persons with disabilities. Louis Harris and Associates recently conducted a national poll of employers (representing equal subgroups of small, medium, and large businesses) to determine their opinions on such issues. By a substantial majority, employers recognized the need and indicated their support for nondiscrimination provisions protecting individuals with disabilities. Three-fourths of company managers interviewed reported that they believe that persons with disabilities often encounter job discrimination, and over 70% stated that civil rights laws should protect persons with disabilities. 2 A related concern is that it is very burdensome for employers to provide equal employment opportunities for persons with disabilities. The recent Harris poll of employers has reaffirmed prior studies that have consistently found that persons with disabilities make good or better than average employees. Based upon employers' responses, the Harris organization concluded, "Overwhelming majorities of managers give disabled employees a good or excellent rating on their -5- overall job performance," and further, "Nearly all disabled employees do their jobs as well or better than other employees in similar jobs." Employees with disabilities were rated as good or better than their nondisabled counterparts in regard to willingness to work hard, reliability, attendance and punctuality, productivity, desire for promotion, ability to take supervision, and leadership ability. What about the costs of employing a person with a disability? Are job modifications for employees with disabilities very costly? The Council has examined existing studies of workplace accommodations provided for individuals with disabilities and concluded that accommodations are usually minor and inexpensive (see Toward Independence, Appendix, p. A-48). A 1982 Department of Labor study of workplace accommodations concluded that accommodation is "no big deal." The Harris poll of employers verifies the results of the earlier studies; the poll found large majorities of managers (approximately 75%) reporting that the costs of making accommodations are not expensive. While nearly one-half of companies reported that they had made some worksite modifications, an overwhelming majority stated that the costs of accommodations rarely drives the cost of employing a person with a disability above the average range of costs for other employees. Some have argued that "Mom and Pop grocery stores" and "corner drugstores" will be saddled with the duty to make In extensive and prohibitively expensive modifications of their premises to achieve accessibility for persons with onerons precossive burdens disabilities. Such hypotheticals are based upon a serious misunderstanding of Section 504 and its application. In the first place, Section 504, with or without the Restoration Act, applies only to recipients of Federal financial assistance. Suggestions that the acceptance of food stamps could trigger the application of Section 504 are totally groundless. The Council has never heard nor been apprised of any case in which Section 504 coverage was predicated upon the receipt of food stamps by a small business. Secondly those small businesses that do qualify as of recipients of Federal financial assistance are subject to the "small provider" exceptions of Section 504. Since their original issuance, Section 504 regulations have included provisions exempting small providers (i.e., agencies with fewer than fifteen employees) from certain requirements, including the obligation to make significant alterations to existing facilities to achieve accessibility and to comply with recordkeeping and reporting requirements. This exception for small providers is specifically retained in the current version of the Restoration Act as it relates to Section 504. The specter of Section 504 placing onerous and excessive T burdens upon small businesses is further dispelled when one understands that Section 504 only requires reasonable modifications. Both the regulations and the court cases that have applied Section 504 have made it clear that the statute only requires the making of reasonable accommodations and alterations for the benefit of an individual with a disability; -7- unduly burdensome or unreasonable changes are not required by Section 504. Finally, the Council wishes to note that many businesses, including Mom and Pop grocery stores and corner drugstores, have been willing to make their facilities accessible to and usable by persons with disabilities. Such changes have not proven to be exorbitantly expensive nor disruptive to business. Making facilities architecturally accessible benefits not only persons with disabilities but also many other customers, including elderly individuals, people pushing strollers and shopping carts, pregnant women, and many others. The Council is aware that many States and local governments have seen fit to mandate architectural accessibility as part of their building codes and ordinances. Obviously, architectural accessibility is not an impossible or unachievable goal. In the Council's view, our entire society benefits from initiatives to secure increased opportunities for persons with disabilities. At the very least, citizens with disabilities are entitled to have Section 504 -- the primary statute that protects them from discrimination -- restored to the scope of coverage that it had prior to the Grove City decision. -8- ON COUNCIL NAT MASSACHUSETTS RPPEA THE HANDICA National Council on the Handicapped 800 Independence Avenue, S.W. Suite 814 Washington, D.C. 20591 202-267-3846 voice 202-267-3232 TDD An Independent Federal Agency STATEMENT OF: THE NATIONAL COUNCIL ON THE HANDICAPPED BY: LEX FRIEDEN, EXECUTIVE DIRECTOR BEFORE THE: U.S. SENATE COMMITTEE ON LABOR AND HUMAN RESOURCES DATE: APRIL 1, 1987 STATEMENT OF: THE NATIONAL COUNCIL ON THE HANDICAPPED BY: LEX FRIEDEN, EXECUTIVE DIRECTOR BEFORE THE: U.S. SENATE COMMITTEE ON LABOR AND HUMAN RESOURCES DATE: APRIL 1, 1987 The National Council on the Handicapped appreciates this opportunity to present its views on the principles espoused in the proposed Civil Rights Restoration Act. The views I am expressing today are those of the Council and not the Administration. The Administration's views will be presented by the Departments of Justice and Education. As you are aware, the Council is an independent Federal agency comprised of 15 members appointed by the President and confirmed by the Senate. Congress has statutorily charged the Council with reviewing all laws, programs and policies of the Federal Government which affect persons with disabilities and making such recommendations as it deems necessary to the President, the Congress, the Rehabilitation Services Administration, the National Institute on Disability and Rehabilitation Research, and other Federal agencies and officials. Although many government agencies relate to the needs and concerns of people with disabilities, the National Council on the Handicapped is the only Federal -1- agency with such cross-cutting responsibility for disability issues --- regardless of age, disability type, employment potential, economic need, or other individual circumstances. In its 1986 report to Congress and the President, Toward Independence, the Council commented on the central premise of the proposed Civil Rights Restoration Act: any person or agency that wishes to obtain Federal grant funds should be required to avoid or cease discriminating in all of its activities. Conversely stated, the Federal Government should not provide financial assistance to any person or agency that engages in discrimination in any part of its operations or activities. (Topic Paper on "Equal Opportunity Laws," Appendix, p. A-9) In pursuing its statutory mandate of advising the Congress and the President on disability issues, the Council has held forums with people with disabilities all around the country. Time after time, individuals with disabilities have told the Council about the egregious discrimination they encounter in their daily lives -- discrimination in jobs, in elementary and secondary education, in higher education, in health services, in recreation, in transportation, in housing, in public accommodations, in obtaining the benefits of public programs and services, and in virtually every other facet of American life. On numerous occasions, Americans with disabilities have declared to the Council that their number one priority is for strong and comprehensive civil rights laws protecting them from discrimination based upon their disabilities. That such views are representative of Americans with disabilities generally is underscored by one of the findings of the 1986 Harris nationwide poll of disabled Americans; Louis Harris and Associates reported -2- as follows: When it comes to how disabled persons should be treated under the law, a near consensus emerges. Three out of every four (75%) disabled persons believe that civil rights laws that protect minorities against discrimination should also protect them. Only 17% disagree. (Louis Harris and Associates, Survey of Disabled Americans, p. 112) The primary Federal statute prohibiting discrimination on the basis of handicap, Section 504 of the Rehabilitation Act of 1973, has had a tremendous impact in reducing discrimination against persons with disabilities. Since the decision of the Supreme Court of the United States in Grove City College V. Bell in 1984, however, the effect of Section 504 has been significantly blunted. In the case of Consolidated Rail Corporation V. Darrone (104 s.ct. 1248 (1984)), decided on the same day as the Grove City ruling, the Supreme Court announced that the limitations upon civil rights coverage established in Grove City apply to Section 504 cases as well (104 s.ct. at p. 1255). The Darrone case involved a claim of discrimination in employment. In the Council's opinion, this suggests that the limitations established in Grove City are not confined to the context of higher education. The Council is aware of numerous types of situations affected adversely by the limitations imposed by the Grove City and Darrone rulings. Examples include: o A man with multiple sclerosis was fired because of his disability from a job in a state office of probation and parole which receives substantial Federal grants, but not for the specific program in which the man worked. o A college athlete is not allowed to participate in the intramural basketball program because of a visual impairment; the intercollegiate program of the college athletic program receives substantial amounts of Federal financial assistance and the student is the recipient of Federal student loans. -3- A person who once had an epileptic seizure was excluded from a state job because of a rule against hiring people with a history of epilepsy; the department where the job is located receives Federal grants, but these funds cannot be traced directly to the program in which the individual applied for a job. O A public school teacher is refused a teaching position because she has a visual impairment; the school system receives a variety of Federal funds, which can even be traced to the particular school, but the music department in which the particular job was located does not receive Federal funds. In each of these situations, the individuals with disabilities would have been protected from discrimination prior to the Grove City decision, but now they are left without recourse under Section 504 against the blatant and despicable acts of discrimination they have suffered. If our Nation's commitment to equality of opportunity for its citizens is to have any meaning, the Council believes that Congress must restore Section 504 and other civil rights laws to the breadth of coverage that they had prior to the Grove City and Darrone decisions. The Council has noted, in its Toward Independence report, that, even without the Grove City narrowing of the scope of Section 504, persons with disabilities have much less protection against discrimination than under civil rights laws protecting other groups. At some time in the future, the Council intends to provide this Committee with its views regarding a more comprehensive approach to prohibiting the discrimination faced by persons with disabilities. But the Council believes that an absolutely necessary first step is to return the scope of coverage of Section 504 and the other civil rights laws to their status before the Supreme Court's ruling in the Grove City case. -4- The Supreme Court of the United States has noted recently that discrimination against persons with disabilities is often rooted in "simple prejudice," "archaic attitudes and laws," and "erroneous but nevertheless prevalent perceptions about the handicapped" (School Board of Nassau County V. Arline, slip op. at pp. 4-5). There have been concerns about the implications of the Civil Rights Restoration Act as it applies to discrimination against persons with disabilities. One concern is that employers are opposed to statutory prohibitions of employment discrimination against persons with disabilities. Louis Harris and Associates recently conducted a national poll of employers (representing equal subgroups of small, medium, and large businesses) to determine their opinions on such issues. By a substantial majority, employers recognized the need and indicated their support for nondiscrimination provisions protecting individuals with disabilities. Three-fourths of company managers interviewed reported that they believe that persons with disabilities often encounter job discrimination, and over 70% stated that civil rights laws should protect persons with disabilities. A related concern is that it is very burdensome for employers to provide equal employment opportunities for persons with disabilities. The recent Harris poll of employers has reaffirmed prior studies that have consistently found that persons with disabilities make good or better than average employees. Based upon employers' responses, the Harris organization concluded, "Overwhelming majorities of managers give disabled employees a good or excellent rating on their -5- overall job performance," and further, "Nearly all disabled employees do their jobs as well or better than other employees in similar jobs. Employees with disabilities were rated as good or better than their nondisabled counterparts in regard to willingness to work hard, reliability, attendance and punctuality, productivity, desire for promotion, ability to take supervision, and leadership ability. What about the costs of employing a person with a disability? Are job modifications for employees with disabilities very costly? The Council has examined existing studies of workplace accommodations provided for individuals with disabilities and concluded that accommodations are usually minor and inexpensive (see Toward Independence, Appendix, p. A-48). A 1982 Department of Labor study of workplace accommodations concluded that accommodation is "no big deal." The Harris poll of employers verifies the results of the earlier studies; the poll found large majorities of managers (approximately 75%) reporting that the costs of making accommodations are not expensive. While nearly one-half of companies reported that they had made some worksite modifications, an overwhelming majority stated that the costs of accommodations rarely drives the cost of employing a person with a disability above the average range of costs for other employees. Some have argued that "Mom and Pop grocery stores" and "corner drugstores" will be saddled with the duty to make extensive and prohibitively expensive modifications of their premises to achieve accessibility for persons with -6- disabilities. Such hypotheticals are based upon a serious misunderstanding of Section 504 and its application. In the first place, Section 504, with or without the Restoration Act, applies only to recipients of Federal financial assistance. Suggestions that the acceptance of food stamps could trigger the application of Section 504 are totally groundless. The Council has never heard nor been apprised of any case in which Section 504 coverage was predicated upon the receipt of food stamps by a small business. Secondly, those small businesses that do qualify as recipients of Federal financial assistance are subject to the "small provider" exceptions of Section 504. Since their original issuance, Section 504 regulations have included provisions exempting small providers (i.e., agencies with fewer than fifteen employees) from certain requirements, including the obligation to make significant alterations to existing facilities to achieve accessibility and to comply with recordkeeping and reporting requirements. This exception for small providers is specifically retained in the current version of the Restoration Act as it relates to Section 504. The specter of Section 504 placing onerous and excessive burdens upon small businesses is further dispelled when one understands that Section 504 only requires reasonable modifications. Both the regulations and the court cases that have applied Section 504 have made it clear that the statute only requires the making of reasonable accommodations and alterations for the benefit of an individual with a disability; -7- unduly burdensome or unreasonable changes are not required by Section 504. Finally, the Council wishes to note that many businesses, including Mom and Pop grocery stores and corner drugstores, have been willing to make their facilities accessible to and usable by persons with disabilities. Such changes have not proven to be exorbitantly expensive nor disruptive to business. Making facilities architecturally accessible benefits not only persons with disabilities but also many other customers, including elderly individuals, people pushing strollers and shopping carts, pregnant women, and many others. The Council is aware that many States and local governments have seen fit to mandate architectural accessibility as part of their building codes and ordinances. Obviously, architectural accessibility is not an impossible or unachievable goal. In the Council's view, our entire society benefits from initiatives to secure increased opportunities for persons with disabilities. At the very least, citizens with disabilities are entitled to have Section 504 -- the primary statute that protects them from discrimination -- restored to the scope of coverage that it had prior to the Grove City decision. -8- name accompanyed by most types knowledge on behalf Thank venus Council, indep. 15, changed prin ad views Council, do not / include record in the process heard from #1 concern equal opp. + equal rights recounted numerous examples share 20 years App. 504 nej, dis/norights millions reforced rights equal many consideral since same City bionsdered year educ Emp appt to be produc insure protes council commitment 4,2 concerns burdensome employer opposed corts Nom of BP modif smallprov eperp. society forefits Avonable significent life experience nearly 20 years ago perhaps even more sig. 19 years ago applied - rejected point blank without hesitation LL equivication strietly on the basis legalized assist assult Symlifed demoralizing Delivering Degrading Ensillusional perfectly legal five years later - 504 celebration - 10 years regs samething could? happen now