[Senate Report 105-296]
[From the U.S. Government Publishing Office]
Calendar No. 534
105th Congress Report
SENATE
2d Session 105-296
_______________________________________________________________________
TO CORRECT A PROVISION RELATING TO TERMINATION OF BENEFITS FOR
CONVICTED PERSONS
__________
R E P O R T
of the
COMMITTEE ON GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
to accompany
H.R. 3096
TO CORRECT A PROVISION RELATING TO TERMINATION OF BENEFITS FOR
CONVICTED PERSONS
August 25, 1998.--Ordered to be printed
COMMITTEE ON GOVERNMENTAL AFFAIRS
FRED THOMPSON, Tennessee, Chairman
WILLIAM V. ROTH, Jr., Delaware JOHN GLENN, Ohio
TED STEVENS, Alaska CARL LEVIN, Michigan
SUSAN COLLINS, Maine JOSEPH I. LIEBERMAN, Connecticut
SAM BROWNBACK, Kansas DANIEL K. AKAKA, Hawaii
PETE V. DOMENICI, New Mexico RICHARD J. DURBIN, Illinois
THAD CHOCHRAN, Mississippi ROBERT G. TORRICELLI, New Jersey
DON NICKLES, Oklahoma MAX CLELAND, Georgia
ARLEN SPECTER, Pennsylvania
Hannah S. Sistare, Staff Director and Chief Counsel
Dan Blair, Senior Counsel
Leonard Weiss, Minority Staff Director
Lynn L. Baker, Chief Clerk
C O N T E N T S
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Page
I. Purpose..........................................................1
II. Background.......................................................1
III. Legislative History..............................................3
IV. Section-by-Section Analysis......................................3
V. Regulatory Impact Statement......................................3
VI. Congressional Budget Office Cost Estimate........................4
VII. Changes in Existing Law..........................................4
Calendar No. 534
105th Congress Report
SENATE
2d Session 105-296
_______________________________________________________________________
TO AMEND THE FEDERAL EMPLOYEES' COMPENSATION ACT TO PROVIDE A TECHNICAL
CORRECTION
_______
August 25, 1998.--Ordered to be printed
Filed under authority of the order of the Senate of July 31, 1998
Mr. Thompson, from the Committee on Governmental Affairs, submitted the
following
R E P O R T
[To accompany H.R. 3096]
The Committee on Governmental Affairs, to which was
referred the bill (H.R. 3096) to amend the Federal Employees'
Compensation Act to correct a provision relating to termination
of benefits for convicted persons, having considered the same,
reports favorably thereon and recommends that the bill do pass.
I. Purpose
H.R. 3096 amends the Federal Employees' Compensation Act
(FECA), the comprehensive workers' compensation law for federal
employees. FECA is designed to provide federal employees
coverage for work-related injuries and deaths. The current
statute and the parallel language of the federal criminal code
differ, creating a discrepancy in the law which could be
interpreted to allow a person to receive FECA benefits on the
basis of fraudulent information. The legislation makes a
technical correction to ensure that persons who commit fraud in
the receipt of FECA benefits would lose their entitlement to
such benefits.
II. Background
The Federal Employees' Compensation Act (FECA), 5 U.S.C.
section 8101 et. seq., is the comprehensive workers'
compensation statute for federal employees and provides uniform
coverage for work-related injuries and death.
This statute was the subject of legislative attention
during the 103rd Congress when legislation was enacted aimed at
curbing waste, fraud and abuse in this important program. At
this time, FECA was amended to include a new section, 5 U.S.C.
section 8148, forfeiture of benefits by convicted felons, which
requires the termination of an individual's workers'
compensation benefits based upon that individual's conviction
under 18 U.S.C. section 1920. Further, Congress amended 18
U.S.C. section 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. section 8148(a), reads in
relevant part as follows:
Any individual convicted of a violation of section
1920 of title 18, or any other Federal or State
criminal statute related 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 language in 18 U.S.C. section
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 language to which the emphasis was added indicates,
there is a discrepancy between the legislative language in 5
U.S.C. section 8148(a) and the corresponding language in 18
U.S.C. section 1920 of the criminal code. 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 in conjunction with subsequent
receipt of compensation benefits. In effect, this
interpretation could allow an individual to receive
compensation benefits even though theindividual was convicted
of committing FECA fraud.
H.R. 3096 makes explicit that individuals convicted of
fraud at any point in the application for or receipt of
workers' compensation benefits are prohibited from receiving
such benefits. The legislation conforms 5 U.S.C. section 8148
with the corresponding language of 18 U.S.C. section 1920.
III. Legislative History
H.R. 3096 was introduced by Representative James C.
Greenwood on January 27, 1998. The bill was referred to the
House Committee on Education and the Workforce and to the
Subcommittee on Workforce Protections. 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. On March 18, 1998, the bill was
placed on the House Corrections Calendar. The bill was
considered by the House on March 24, 1998 and passed the House
by a roll call vote of 408-0 (a three-fifths majority having
been required).
On March 25, 1998, H.R. 3096 was received by the Senate
and referred to the Committee on Governmental Affairs. On April
20, 1998, the bill was referred to the Subcommittee on
International Security, Proliferation, and Federal Services. On
May 8, 1998, a majority (9) of the Subcommittee Members
approved reporting favorably H.R. 3096 to the full Committee.
No hearings were held, nor testimony received. The Committee
proceeded to consider H.R. 3096 on June 17, 1998. No amendments
were offered during consideration of this legislation by the
full Committee. H.R. 3096 was considered en bloc with other
legislation and was ordered to be reported favorably to the
full Senate by voice vote.
IV. Section-by-Section Analysis
SECTION 1. CORRECTION
H.R. 3096 corrects a technical problem in the Federal
Employees' Compensation Act (Section 8148(a) of Title 5) by
conforming the language to the criminal code (Section 1920 of
Title 18) by replacing the word ``a'' with the word ``or''.
V. Regulatory Impact Statement
Pursuant to the requirement of paragraph 11(b) of rule
XXVI of the Standing Rules of the Senate, the Committee has
considered the regulatory and paperwork impact of H.R. 3096.
The legislation makes a one word change in the Federal
Employees' Compensation Act, thereby preventing those convicted
of FECA fraud from receiving FECA benefits. H.R. 3096 contains
no intergovernmental or private-sector mandates and would not
affect the budgets of state, local or tribal governments.
VI. Congressional Budget Office Cost Estimate
U.S. Congress,
Congressional Budget Office,
Washington, DC, June 25, 1998.
Hon. Fred Thompson,
Chairman, Committee on Governmental Affairs,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3096, an act 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--An Act 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
clarify the wording of one provision. The section to be amended
causes individuals convicted of fraud in the application or
receipt of workers' compensation 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 some fraudulently collected benefits could be
affected. However, there have been no cases where the
inconsistent wording has been used as a defense against
termination of benefits. It is unlikely, therefore, that
enactment of this legislation 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
and would not affect the budgets of state, local, or tribal
governments.
On March 12, 1998, CBO provided an identical estimate of
the cost of this act to the House Committee on Education and
the Workforce.
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 Robert A. Sunshine,
Deputy Assistant Director for Budget Analysis.
VII. Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, 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.