[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

                              ----------                              
                                                                   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.

                                
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