[House Report 105-523]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-523
_______________________________________________________________________


 
                      RELIEF OF MARGARITO DOMANTAY

_______________________________________________________________________


   May 12, 1998.--Committed to the Committee of the Whole House and 
                         ordered to be printed

                                _______
                                

Mr. Smith of Texas, from the Committee on the Judiciary, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 375]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on the Judiciary, to whom was referred the 
bill (H.R. 375) for the relief of Margarito Domantay, having 
considered the same, reports favorably thereon with an 
amendment and recommends that the bill as amended do pass.


                           TABLE OF CONTENTS

                                                                   Page
The Amendment..............................................           1
Purpose and Summary........................................           2
Background and Need for the Legislation....................           2
Hearings...................................................           2
Committee Consideration....................................           2
Committee Oversight Findings...............................           3
Committee on Government Reform and Oversight Findings......           3
New Budget Authority and Tax Expenditures..................           3
Congressional Budget Office Cost Estimate..................           3
Constitutional Authority Statement.........................           4
Agency Views...............................................           4

    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. PAYMENT OF CLAIM AGAINST THE UNITED STATES FOR ERRONEOUS 
                    COMPUTATION OF RETIRED PAY.

    The Secretary of the Treasury shall pay, out of any funds in the 
Treasury not otherwise appropriated, to Petty Officer Margarito 
Domantay, United States Navy (retired), of Tampa, Florida, the sum of 
$6,386.30, such amount representing the amount of retired pay (with 
interest) that Petty Officer Domantay would have received for the 
period beginning on June 8, 1979, and ending on March 12, 1985, had 
that retired pay been properly computed based upon pay grade E-5 second 
class (rather than pay grade of E-4, third class, with which such 
retired pay was computed due to administrative error).

SEC. 2. LIMITATION ON AGENT AND ATTORNEY FEES.

    It shall be unlawful for an amount exceeding 10 percent of the 
amount paid pursuant to section 1 to be paid to, or received by, any 
agent or attorney for any service rendered in connection with the claim 
described in such section. Any person who violates this section shall 
be guilty of an infraction, and shall be subject to a fine in the 
amount provided in title 18, United States Code.

                          Purpose and Summary

    The bill would provide the claimant with the retired pay he 
would have received between June 8, 1979, and March 12, 1985, 
had the retired pay been computed at pay grade E-5, second 
class.

                  Background and Need For Legislation

    Mr. Domantay was transferred to the Fleet Reserve as a 
Petty Officer on June 8, 1979. Although his transfer documents 
indicated that he had been advanced to the pay grade of E-5 
prior to the transfer, the Transfer Authorization listed Mr. 
Domantay as an E-4. Because of this conflict of information, an 
administrative error was made which established Mr. Domantay's 
pay account at pay grade E-4. Mr. Domantay did not become aware 
of the error until March 1991. Unfortunately, the Barring Act 
bars any claim which is not received within 6 years after the 
date the claim first accrued.
    The General Accounting Office reviewed Mr. Domantay's 
claim, and recommended that a private relief bill be enacted to 
provide the amounts Mr. Domantay should have received from June 
8, 1979 to March 12, 1985. Mr. Domantay has received the 
backpay for the years 1985-1991 because the Department was not 
barred from making those payments.
    The Department of the Navy supports H.R. 375 with an 
amendment. That amendment was adopted by the Committee.

                                Hearings

    The Committee's Subcommittee on Immigration and Claims held 
no hearings on H.R. 375.

                        Committee Consideration

    On March 12, 1998, the Subcommittee on Immigration and 
Claims met in open session and ordered favorably reported the 
bill H.R. 375, as amended, by voice vote, a quorum being 
present.
    On April 1, 1998, the Committee on the Judiciary met in 
open session and ordered reported favorably the bill H.R. 375, 
with amendment by voice vote, a quorum being present.

                      Committee Oversight Findings

    In compliance with clause 2(l)(3)(A) of rule XI of the 
Rules of the House of Representatives, the Committee reports 
that the findings and recommendations of the Committee, based 
on oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

         Committee on Government Reform and Oversight Findings

    No findings or recommendations of the Committee on 
Government Reform and Oversight were received as referred to in 
clause 2(l)(3)(D) of rule XI of the Rules of the House of 
Representatives.

               New Budget Authority and Tax Expenditures

    Clause 2(l)(3)(B) of House Rule XI is inapplicable because 
this legislation does not provide new budgetary authority or 
increased tax expenditures.

               Congressional Budget Office Cost Estimate

    In compliance with clause 2(l)(3)(C) of rule XI of the 
Rules of the House of Representatives, the Committee sets 
forth, with respect to the bill, H.R. 375, the following 
estimate and comparison prepared by the Director of the 
Congressional Budget Office under section 403 of the 
Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, April 2, 1998.
Hon. Henry J. Hyde,
Chairman, Committee on the Judiciary,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 375, a bill for 
the relief of Margarito Domantay.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is John R. 
Righter, who can be reached at 226-2860.
            Sincerely,

                                           June E. O'Neill, Director.  
    Enclosure.

    cc: Hon. John Conyers, Jr.,
         Ranking Minority Member.
H.R. 375--A bill for the relief of Margarito Domantay
    H.R. 375 would require the Secretary of the Treasury to pay 
$6,386.30 to Mr. Domantay to correct an error made by the 
Department of the Navy in calculating the amount of his 
retirement pay. Because the bill would increase direct 
spending, pay-as-you-go procedures would apply, but the 
budgetary impact would be insignificant.
    The CBO staff contact for this estimate is John R. Righter, 
who can be reached at 226-2860. This estimate was approved by 
Robert A. Sunshine, Deputy Assistant Director for Budget 
Analysis.

                   Constitutional Authority Statement

    Pursuant to Rule XI, clause 2(1)(4) of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in the First Amendment of the Constitution.

                              Agency Views

    The comments of the Department of the Navy on H.R. 375 are 
as follows:

                             Department of the Navy
                              Office of Legislative Affairs
                                 Washington, DC, December 23, 1997.
Hon. Lamar Smith, Chairman,
Subcommittee on Immigration and Claims,
Committee on the Judiciary,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: This is in response to your request for 
the views of the Department of Defense on H.R. 375, 105th 
Congress, a bill ``For the relief of Margarito Domantay.'' The 
Department of the Navy has been assigned responsibility for 
expressing the views of the Department of Defense on this bill.
    The purpose of the bill is to relieve Petty Officer 
Margarito Domantay, United States Navy, Retired, for the amount 
of pay he would have received had he been correctly retired in 
the pay grade of E-5, rather than the pay grade of E-4.
    Petty Officer Domantay was transferred to the Fleet Reserve 
on June 8, 1979. The Transfer Authorization listed him as an E-
4, however, it was noted on the form that he was advanced to E-
5 prior to transfer. Since E-5 was the last grade held prior to 
transfer, this is the grade that his pay should have been based 
on. Due to administrative error, the advancement was not noted 
and the pay account was established in pay grade E-4. The error 
was not noted by Petty Officer Domantay until March of 1991. 
However, Petty Officer Domantay's claim is barred based on the 
Barring Act of 1940, now codified at 37 U.S.C. 3702.
    The Barring Act provides in part that:

          Every claim . . . against the United States 
        cognizable by the General Accounting Office . . . shall 
        be forever barred unless such claim . . . shall be 
        received in said office within 6 years after the date 
        such claim first accrued.

    The General Accounting Office reviewed Petty Officer 
Domantay's claim and concluded that the six year statute of 
limitations of the Barring Act was applicable. Therefore, GAO 
recommends that private relief be provided to correct the 
administrative error in Petty Officer Domantay's pay that ran 
from June 8, 1979, to March 12, 1985.
    The Department of Navy, on behalf of the Department of 
Defense, recommends that legislation be enacted to provide such 
relief. The Department would support H.R. 375 which the 
following changes to Section 1 of H.R. 375:

          The Secretary of the Treasury shall pay out of any 
        funds in the Treasury not otherwise appropriated, to 
        Petty Officer Margarito Domantay, United States Navy, 
        Retired, of Tampa, Florida, the sum of $6,386.30. Such 
        sum shall represent the amount of retired pay (with 
        interest) he would have received for the period 
        beginning on June 8, 1979, and ending on March 12, 
        1985, had it been properly computed at pay grade E-5, 
        second class (rather than pay grade E-4, third class, 
        in which it was computed due to administrative error.)

    The changes would clearly state the facts as they exist. 
Under these circumstances, enactment of the bill would provide 
a equitable and fair relief to Petty Officer Domantay. As such, 
the bill is supported with the above recommended change to 
Section 1 of H.R. 375.
    The Office of Management and Budget advises that, from the 
standpoint of the Administration's program, there is no 
objection to the presentation of this report for the 
consideration of the Committee.
            Sincerely,
                                       R.F. Walsh, Captain,
                                                    JAGC, U.S. Navy
                                              Director, Legislation
                                         By direction of the Chief.
    Copy to:

          Hon. Melvin L. Watt,
          Ranking Minority Member

                                 
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