[House Report 107-446]
[From the U.S. Government Publishing Office]



107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-446

======================================================================



 
                    FOR THE RELIEF OF EUGENE MAKUCH

                                _______
                                

   May 7, 2002.--Referred to the Private Calendar and ordered to be 
                                printed

                                _______
                                

 Mr. Sensenbrenner, from the Committee on the Judiciary, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 487]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on the Judiciary, to whom was referred the 
bill (H.R. 487) for the relief of Eugene Makuch, having 
considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     1
Background and Need for the Legislation..........................     1
Hearings.........................................................     2
Committee Consideration..........................................     2
Committee Oversight Findings.....................................     2
Performance Goals and Objectives.................................     2
New Budget Authority and Tax Expenditures........................     3
Congressional Budget Office Cost Estimate........................     3
Constitutional Authority Statement...............................     3
Agency Views.....................................................     4
Markup Transcript................................................     6

                          Purpose and Summary

    H.R. 487 would provide $1,000,000 to Eugene Makuch for his 
service as foreign counterintelligence agent.

                Background and Need for the Legislation

    Mr. Makuch and his wife were double agents against the KGB 
and the Soviet Union during the height of the Cold War.
    Mr. Makuch's wife was born in a refugee camp in post-war 
Germany. Her father was held in a Nazi concentration camp; her 
uncle and grandfather both were killed by Communists; and her 
mother had to flee from the Ukraine in 1944. These events led 
Mrs. Makuch to offer her services to the FBI against anti-
American, pro-Communist New Left movements in 1971 at the age 
of 18. She was successful in infiltrating the KGB and made 
several visits to the Soviet Union to meet with KGB officials.
    Mr. Makuch, in concert with his wife, also assisted the 
bureau. During that time, his health steadily deteriorated 
while he accompanied his wife to the Soviet Union. Ultimately, 
he suffered through two kidney transplants and a brain aneurysm 
that left him in a coma for several weeks.
    Mr. Makuch and his wife were the source of information 
regarding secret funding channels of the Soviet Union and 
communist groups in the United States. The information gathered 
by them steered U.S. foreign policy and assisted the FBI in 
thwarting planned espionage activity by the Soviet Union. The 
Makuchs identified the primary Soviet front group in the U.S. 
That identification resulted in the conviction of the head of 
that organization for illegal transportation of Soviet funds 
from Moscow to the United States.
    In 1992, Mr. Makuch's wife was awarded the Louis E. Peters 
Memorial Award, the highest civilian FBI award for her service 
to the United States. Although the Makuchs received some 
financial assistance over the 21 years they worked with the 
FBI, they did not receive any disability, Social Security, 
health care or pension benefits as promised by some of the 
individuals they worked with. This bill would compensate Mr. 
Makuch for the lack of those benefits .
    The Department of Justice has no opposition to the bill.

                                Hearings

    No hearings were held on H.R. 487.

                        Committee Consideration

    On November 1, 2001, the Subcommittee on Immigration and 
Claims met in open session and ordered favorably reported the 
bill H.R. 487, by voice vote, a quorum being present. On April 
24, 2002, the Committee met in open session and ordered 
favorably reported the bill H.R. 487 without amendment by voice 
vote, a quorum being present.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII 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.

                    Performance Goals and Objectives

    H.R. 487 authorizes funding from the General Treasury in 
the amount of $1,000,000 to be paid to the claimant.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of House rule XIII is inapplicable because 
this legislation does not provide new budgetary authority or 
increased tax expenditures.

               Congressional Budget Office Cost Estimate

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, the Committee sets forth, with 
respect to the bill, H.R. 487, the following estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, April 29, 2002.
Hon. F. James Sensenbrenner, Jr., 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. 487, a bill for 
the relief of Eugene Makuch.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford, who can be reached at 226-2860.
    Sincerely,
                                  Dan L. Crippen, Director.

Enclosure

cc:
        Honorable John Conyers, Jr.
        Ranking Member
H.R. 487--A bill for the relief of Eugene Makuch.
    H.R. 487 would direct the Secretary of the Treasury to pay 
$1 million to Eugene Makuch of East Amherst, New York, as 
compensation for service in assisting the Federal Bureau of 
Investigation during the Cold War as a foreign 
counterintelligence agent. Because the bill would increase 
direct spending, pay-as-you-go procedures would apply.
    The CBO staff contact for this estimate is Matthew 
Pickford, who can be reached at 226-2860. This estimate was 
approved by Peter H. Fontaine, Deputy Assistant Director for 
Budget Analysis.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in article 1, section 8 of the Constitution.

                              Agency Views


                           Markup Transcript



                            BUSINESS MEETING

                       WEDNESDAY, APRIL 24, 2002

                  House of Representatives,
                                Committee on the Judiciary,
                                                    Washington, DC.
    The Committee met, pursuant to notice, at 10:09 a.m., in 
Room 2141, Rayburn House Office Building, Hon. F. James 
Sensenbrenner, Jr. [Chairman of the Committee] presiding.
    Chairman Sensenbrenner. [Presiding.] The Committee will be 
in order.
    [Intervening business.]
    Chairman Sensenbrenner. Okay. The next item on the agenda 
is the adoption of H.R. 486 for the relief of Barbara Makuch, 
H.R. 487 for the relief of Eugene Makuch, H. Res. 103 referring 
the bill H.R. 1258 to the chief judge of the U.S. Court of 
Federal Claims for a report thereon. Without objection, the 
bills will be considered en bloc.
    [The bill, H.R. 487, follows:]
    
    
    Chairman Sensenbrenner. The Chair recognizes the gentleman 
from Pennsylvania for a motion.
    Mr. Gekas. Mr. Chairman, the Subcommittee on Immigration 
and Claims reports favorably the bills H.R. 486, H.R. 487, and 
H. Res. 103 and moves their favorable recommendation to the 
full House.
    Chairman Sensenbrenner. Without objection, they will be 
considered as read and open for amendment at any point. Without 
objection, statements can be placed in the record at this 
point.
    Are there any amendments to either of the bills? If not, 
the Chair notes the presence of a reporting quorum. The 
question is on----
    Ms. Jackson Lee. Sorry, Mr. Chairman. Could you repeat the 
bills that you--are you doing these en bloc?
    Chairman Sensenbrenner. H.R. 486, H.R. 487, and H. Res. 103 
en bloc.
    Ms. Jackson Lee. Mr. Chairman?
    Chairman Sensenbrenner. The gentlewoman from Texas.
    Ms. Jackson Lee. Let me just add my support and I will 
offer a statement in the record for those three bills. Thank 
you.
    [The prepared statement of Ms. Jackson Lee follows:]

    
    

    Chairman Sensenbrenner. The Chair notes the presence of a 
reporting quorum. The question is on reporting the three bills 
favorably. Those in favor will signify by saying aye? Those 
opposed, no?
    The ayes appear to have it. The ayes have it, and the bills 
are favorably reported. Without objection, the Chairman is 
authorized to move to go to conference pursuant to House rules. 
Without objection, the staff is directed to make any technical 
and conforming changes, and all Members will be given 2 days, 
as provided by House rules, in which to submit additional 
supplemental, dissenting, or minority views.

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