[House Report 105-446]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
 2d Session             HOUSE OF REPRESENTATIVES                105-446
_______________________________________________________________________


 
                               CORRECTION

                                _______
                                

 March 17, 1998.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______


   Mr. Goodling, from the Committee on Education and the Workforce, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 3096]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Education and the Workforce, to whom was 
referred the bill (H.R. 3096) to correct a provision relating 
to termination of benefits for convicted persons, having 
considered the same, report favorably thereon without amendment 
and recommend that the bill do pass.

                                Purpose

    The purpose of H.R. 3096 is to amend the Federal Employees' 
Compensation Act to provide a technical correction to Title 5, 
Section 8148(a), United States Code.

                            Committee Action

    Representative James C. Greenwood introduced H.R. 3096 on 
January 27, 1998. The Subcommittee on Workforce Protections 
approved the bill by voice vote on February 4, 1998, and 
ordered it favorably reported to the Committee on Education and 
the Workforce. On March 11, 1998, the Committee on Education 
and the Workforce approved H.R. 3096 by voice vote, and ordered 
the bill favorably reported to the U.S. House of 
Representatives.

                     Committee Statement and Views

    The Federal Employees' Compensation Act (FECA), 5 U.S.C. 
Sec. 8101 et. seq., is a comprehensive workers' compensation 
law for federal employees that is designed to provide uniform 
coverage for work-related injuries or deaths.
    In the 103d Congress, two legislative changes were enacted 
to eliminate fraud and abuse in the federal workers' 
compensation program. First, Congress added a new section, 5 
U.S.C. Sec. 8148, forfeiture of benefits by convicted felons, 
to FECA to require the termination of an individual's workers' 
compensation benefits upon that individual's conviction under 
18 U.S.C. Sec. 1920. Second, Congress amended 18 U.S.C. 
Sec. 1920 to make a violation of Section 1920 a felony for acts 
occurring on or after September 30, 1994. The amendment to 
FECA, 5 U.S.C. Sec. 8148(a), reads in pertinent part as 
follows:

          Any individual convicted of a violation of section 
        1920 of title 18, or any other Federal or State 
        criminal statute relating to fraud in the application 
        for a receipt [emphasis added] of any benefit under 
        this subchapter or subchapter III of this chapter, 
        shall forfeit (as of the date of such conviction) any 
        entitlement to any benefit such individual would 
        otherwise be entitled to under this subchapter or 
        subchapter III for any injury occurring on or before 
        the date of such conviction. Such forfeiture shall be 
        in addition to any action the Secretary may take under 
        section 8106 or 8129.

    However, the corresponding wording in 18 U.S.C. Sec. 1920 
reads as follows:

          Whoever knowingly and willfully falsifies, conceals, 
        or covers up a material fact, or makes a false, 
        fictitious, or fraudulent statement or representation, 
        or makes or uses a false statement or report knowing 
        the same to contain any false, fictitious or fraudulent 
        statement or entry in connection with the application 
        for or receipt [emphasis added] of compensation or 
        other benefit or payment under subchapter I or III of 
        chapter 81 of title 5, shall be guilty of perjury, and 
        on conviction thereof shall be punished by a fine under 
        this title, or by imprisonment for not more than 5 
        years, or both; but if the amount of the benefits 
        falsely obtained does not exceed $1,000, such person 
        shall be punished by a fine under this title, or by 
        imprisonment for not more than 1 year, or both.

    As the bolded statements indicate above, there is a minor 
difference between the legislative language in 5 U.S.C. 
Sec. 8148(a) and the corresponding language in the criminal 
code, 18 U.S.C. Sec. 1920. It is possible to read the language 
in FECA as requiring the termination of benefits only where 
fraud was committed in the initial application for benefits, 
rather than in conjunction with subsequent receipt of 
compensation benefits. In effect, this could potentially allow 
an individual to receive compensation benefits even though the 
individual was convicted of committing FECA fraud.
    A minor clarification--changing ``a receipt'' in 5 U.S.C. 
Sec. 8148 to ``or receipt''--clearly prohibits these 
individuals from receiving benefits. Changing this wording 
makes 5 U.S.C. Sec. 8148 read the same as the corresponding 
part in 18 U.S.C. Sec. 1920.
    The Department of Labor and the Department of Labor's 
Office of the Inspector General support making this small, but 
important change and the Committee is pleased to act quickly to 
eliminate this potential problem.

                                Summary

    H.R. 3096 corrects a technical problem in FECA by replacing 
the word ``a'' with the word ``or''.

                           Section-by-Section

                         Section 1. Correction.

    H.R. 3096 corrects a technical problem in the Federal 
Employees' Compensation Act (Section 8148(a) of Title 5) and 
the parallel language in the criminal code (Section 1920 of 
Title 18) by replacing the word ``a'' with the word ``or''.

                       Explanation of Amendments

    The Committee adopted no amendments.

                        Constitutional Authority

    H.R. 3096 amends the Federal Employees' Compensation Act by 
correcting an earlier drafting error. Because H.R. 3096 
modifies, but does not extend the law, the Committee believes 
that H.R. 3096 falls within the same scope of congressional 
authority as the Federal Employees' Compensation Act.

                           Committee Estimate

    Clause 7 of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 3096. However, clause 7(d) of that rule provides that this 
requirement does not apply when the Committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Congressional Budget Act.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch. This bill makes a one word change in the Federal 
Employees Compensation Act which closes a loophole that may 
have allowed those convicted of FECA fraud to still receive 
FECA benefits; the bill does not prevent legislative branch 
employees from receiving the benefits of this legislation.

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act requires a statement of whether the provisions of 
the reported bill include unfunded mandates. This bill makes a 
one word change in the Federal Employees Compensation Act which 
closes a loophole that may have allowed those convicted of FECA 
fraud to still receive FECA benefits, and as such does not 
contain any unfunded mandates.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 2(l)(3)(A) of rule XI and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee's oversight findings and recommendations are 
reflected in the body of this report.

 Statement of Oversight Findings of the Committee on Government Reform 
                             and Oversight

    With respect to the requirement of clause 2(l)(3)(D) of 
rule XI of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight on the subject of H.R. 3096.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 2(l)(3)(B) of 
rule XI of the House of Representatives and section 308(a) of 
the Congressional Budget Act of 1974 and with respect to 
requirements of 2(l)(3)(C) of rule XI of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for H.R. 3096 from the Director of the Congressional Budget 
Act:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 12, 1998.
Hon. William F. Goodling,
Chairman, Committee on Education and the Workforce, House of 
        Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3096, a bill to 
correct a provision relating to termination of benefits for 
convicted persons.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Christina 
Hawley Sadoti.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

H.R. 3096--A Bill to Correct a Provision Relating to Termination of 
        Benefits for Convicted Persons

    Summary: H.R. 3096 would amend Title 5 of the U.S. Code to 
correct a reference to Title 18 of the code. The section to be 
amended causes individuals convicted of fraud in the 
application or receipt of benefits under the Federal Employees 
Compensation Act (FECA) to forfeit their entitlement. Although 
the current wording in Title 5 is not precisely the same as the 
section it references in Title 18, 103 individuals have had 
their benefits terminated upon conviction of fraud under FECA 
since 1993, when the law first became effective. Absent this 
change, the ability of the Department of Labor to terminate 
fraudulently collected benefits could be affected. However, 
there have been no cases where the inconsistent wording has 
been used as a defense against a charge of fraud. It is 
unlikely, therefore, that enactment of this bill would have any 
significant effect on the federal budget.
    H.R. 3096 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act of 1995 
(UMRA) and would not affect the budgets of state, local, or 
tribal governments.
    This estimate was prepared by Christina Hawley Sadoti 
(federal cost), Marc Nicole (impact on state, local and tribal 
governments), and Kathryn Rarick (impact on the private 
sector).
    This estimate was approved by Paul N. Van de Water, 
Assistant Director for Budget Analysis.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3 of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

              SECTION 8148 OF TITLE 5, UNITED STATES CODE

Sec. 8148. Forfeiture of benefits by convicted felons

    (a) Any individual convicted of a violation of section 1920 
of title 18, or any other Federal or State criminal statute 
relating to fraud in the application for [a] or  receipt of any 
benefit under this subchapter or subchapter III of this 
chapter, shall forfeit (as of the date of such conviction) any 
entitlement to any benefit such individual would otherwise be 
entitled to under this subchapter or subchapter III for any 
injury occurring on or before the date of such conviction. Such 
forfeiture shall be in addition to any action the Secretary may 
take under section 8106 or 8129.
          * * * * * * *

                                
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