text: SECTION 1. EQUAL ACCESS TO JUSTICE REFORM.
  
      (a) Short Title.--This Act may be cited as the ``Equal Access to 
  Justice Reform Amendments of 2000''.
      (b) Award of Costs and Fees.--
              (1) Administrative proceedings.--Section 504(a)(2) of title 
          5, United States Code, is amended by inserting after ``(2)'' 
          the following: ``At any time after the commencement of an 
          adversary adjudication covered by this section, the 
          adjudicative officer may ask a party to declare whether such 
          party intends to seek an award of fees and expenses against the 
          agency should such party prevail.''.
              (2) Judicial proceedings.--Section 2412(d)(1)(B) of title 
          28, United States Code, is amended by inserting after ``(B)'' 
          the following: ``At any time after the commencement of an 
          adversary adjudication covered by this section, the court may 
          ask a party to declare whether such party intends to seek an 
          award of fees and expenses against the agency should such party 
          prevail.''.
      (c) Payment From Agency Appropriations.--
              (1) Administrative proceedings.--Section 504(d) of title 5, 
          United States Code, is amended by adding at the end the 
          following: ``Fees and expenses awarded under this subsection 
          may not be paid from the claims and judgments account of the 
          Treasury from funds appropriated pursuant to section 1304 of 
          title 31.''.
              (2) Judicial proceedings.--Section 2412(d)(4) of title 28, 
          United States Code, is amended by adding at the end the 
          following: ``Fees and expenses awarded under this subsection 
          may not be paid from the claims and judgments account of the 
          Treasury from funds appropriated pursuant to section 1304 of 
          title 31.''.
      (d) Taxpayers' Recovery of Costs, Fees, and Expenses.--
              (1) Administrative proceedings.--Section 504 of title 5, 
          United States Code, is amended by striking subsection (f).
              (2) Judicial proceedings.--Section 2412 of title 28, United 
          States Code, is amended by striking subsection (e).
      (e) Offers of Settlement.--
              (1) Administrative proceedings.--Section 504 of title 5, 
          United States Code (as amended by subsection (d) of this 
          section), is amended by adding at the end the following:
      ``(f)(1) At any time after the filing of an application for fees 
  and other expenses under this section, an agency from which a fee award 
  is sought may serve upon the applicant an offer of settlement of the 
  claims made in the application. If within 10 days after service of the 
  offer the applicant serves written notice that the offer is accepted, 
  either party may then file the offer and notice of acceptance together 
  with proof of service thereof.
      ``(2) An offer not accepted shall be deemed withdrawn. The fact 
  that an offer is made but not accepted shall not preclude a subsequent 
  offer. If any award of fees and expenses for the merits of the 
  proceeding finally obtained by the applicant is not more favorable than 
  the offer, the applicant shall not be entitled to receive an award for 
  attorneys' fees or other expenses incurred in relation to the 
  application for fees and expenses after the date of the offer.''.
              (2) Judicial proceedings.--Section 2412 of title 28, United 
          States Code (as amended by subsection (d) of this section), is 
          amended by inserting after subsection (d) the following:
      ``(e)(1) At any time after the filing of an application for fees 
  and other expenses under this section, an agency of the United States 
  from which a fee award is sought may serve upon the applicant an offer 
  of settlement of the claims made in the application. If within 10 days 
  after service of the offer the applicant serves written notice that the 
  offer is accepted, either party may then file the offer and notice of 
  acceptance together with proof of service thereof.
      ``(2) An offer not accepted shall be deemed withdrawn. The fact 
  that an offer is made but not accepted shall not preclude a subsequent 
  offer. If any award of fees and expenses for the merits of the 
  proceeding finally obtained by the applicant is not more favorable than 
  the offer, the applicant shall not be entitled to receive an award for 
  attorneys' fees or other expenses incurred in relation to the 
  application for fees and expenses after the date of the offer.''.
      (f) Elimination of Substantial Justification Standard.--
              (1) Administrative proceedings.--Section 504 of title 5, 
          United States Code, is amended--
                      (A) in subsection (a)(1), by striking all beginning 
                  with ``, unless the adjudicative officer'' through 
                  ``expenses are sought''; and
                      (B) in subsection (a)(2), by striking ``The party 
                  shall also allege that the position of the agency was 
                  not substantially justified.''.
              (2) Judicial proceedings.--Section 2412(d) of title 28, 
          United States Code, is amended--
                      (A) in paragraph (1)(A), by striking ``, unless the 
                  court finds that the position of the United States was 
                  substantially justified or that special circumstances 
                  make an award unjust'';
                      (B) in paragraph (1)(B), by striking ``The party 
                  shall also allege that the position of the United 
                  States was not substantially justified. Whether or not 
                  the position of the United States was substantially 
                  justified shall be determined on the basis of the 
                  record (including the record with respect to the action 
                  or failure to act by the agency upon which the civil 
                  action is based) which is made in the civil action for 
                  which fees and other expenses are sought.''; and
                      (C) in paragraph (3), by striking ``, unless the 
                  court finds that during such adversary adjudication the 
                  position of the United States was substantially 
                  justified, or that special circumstances make an award 
                  unjust''.
      (g) Reports to Congress.--
              (1) Administrative proceedings.--Not later than 180 days 
          after the date of the enactment of this Act, the Administrative 
          Conference of the United States shall submit a report to 
          Congress--
                      (A) providing an analysis of the variations in the 
                  frequency of fee awards paid by specific Federal 
                  agencies under the provisions of section 504 of title 
                  5, United States Code; and
                      (B) including recommendations for extending the 
                  application of such sections to other Federal agencies 
                  and administrative proceedings.
              (2) Judicial proceedings.--Not later than 180 days after 
          the date of the enactment of this Act, the Department of 
          Justice shall submit a report to Congress--
                      (A) providing an analysis of the variations in the 
                  frequency of fee awards paid by specific Federal 
                  districts under the provisions of section 2412 of title 
                  28, United States Code; and
                      (B) including recommendations for extending the 
                  application of such sections to other Federal judicial 
                  proceedings.
      (h) Effective Date.--The provisions of this Act and the amendments 
  made by this Act shall take effect 30 days after the date of the 
  enactment of this Act and shall apply only to an administrative 
  complaint filed with a Federal agency or a civil action filed in a 
  United States court on or after such date.
target: Prohibits payment of fees and expenses awarded in such proceedings from appropriated funds of the Treasury's claims and judgements account.
  Deletes provisions barring taxpayer recovery of costs, fees, or other expenses awarded under the Internal Revenue Code.
  Specifies that: (1) at any time after the filing of an application for fees and other expenses an agency may offer a settlement of the claims made (and, if within ten days, the applicant accepts, either party may file the offer and notice of acceptance); (2) an offer not accepted shall be deemed withdrawn (but shall not preclude a subsequent offer); and (3) if any award finally obtained by the applicant is not more favorable than the offer, the applicant shall not be entitled to receive an award for attorney's fees or other expenses incurred in relation to the application for fees and expenses after the date of the offer.
  Deletes requirements that a court find or a party allege that the position of the agency or of the United States was or was not substantially justified.
  Requires the Administrative Conference of the United States and the Department of Justice to report to the Congress on fee awards paid by Federal districts and agencies.
feat_title: Equal Access to Justice Reform Amendments of 2000