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109th Congress Rept. 109-437
HOUSE OF REPRESENTATIVES
1st Session Part 1
GUAM WORLD WAR II LOYALTY RECOGNITION ACT
April 25, 2006.--Ordered to be printed
Mr. Pombo, from the Committee on Resources, submitted the following
R E P O R T
[To accompany H.R. 1595]
[Including cost estimate of the Congressional Budget Office]
The Committee on Resources, to whom was referred the bill
(H.R. 1595) to implement the recommendations of the Guam War
Claims Review Commission, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Guam World War II
Loyalty Recognition Act''.
(b) Table of Contents.--The table of contents of this Act is as
Sec. 1. Short title; table of contents.
Sec. 2. Recognition of the suffering and loyalty of the residents of
Sec. 3. Payments for Guam World War II claims.
Sec. 4. Adjudication.
Sec. 5. Grants program to memorialize the occupation of Guam during
World War II.
SEC. 2. RECOGNITION OF THE SUFFERING AND LOYALTY OF THE RESIDENTS OF
(a) Recognition of the Suffering of the Residents of Guam.--The
United States recognizes that, as described by the Guam War Claims
Review Commission, the residents of Guam, on account of their United
States nationality, suffered unspeakable harm as a result of the
occupation of Guam by Imperial Japanese military forces during World
War II, by being subjected to death, rape, severe personal injury,
personal injury, forced labor, forced march, or internment.
(b) Recognition of the Loyalty of the Residents of Guam.--The United
States forever will be grateful to the residents of Guam for their
steadfast loyalty to the United States of America, as demonstrated by
the countless acts of courage they performed despite the threat of
death or great bodily harm they faced at the hands of the Imperial
Japanese military forces that occupied Guam during World War II.
SEC. 3. PAYMENTS FOR GUAM WORLD WAR II CLAIMS.
(a) Payments for Death, Personal Injury, Forced Labor, Forced March,
and Internment.--After receipt of certification pursuant to section
4(b)(8) and in accordance with this section, the Secretary of the
Treasury shall make the following payments:
(1) Survivors of residents who died in war.--In the case of a
compensable Guam decedent (as defined in subsection (c)(1)),
the Secretary shall pay $25,000 for distribution to eligible
survivors of the decedent as specified in subsection (b).
(2) Residents injured.--In the case of a compensable Guam
victim who is not deceased, the Secretary shall pay such victim
(A) If the victim has suffered an injury described in
subsection (c)(2)(A), $15,000.
(B) If the victim is not described in subparagraph
(A) but has suffered an injury described in subsection
(C) If the victim is not described in subparagraph
(A) or (B) but has suffered an injury described in
subsection (c)(2)(C), $10,000.
(3) Survivors of deceased injured residents.--In the case of
a compensable Guam victim who is deceased, the Secretary shall
pay $7,000 for distribution to eligible survivors of the victim
as specified in subsection (b).
Payments under this section shall be treated for purposes of section
1304(a) of title 31, United States Code, as an award otherwise
authorized as law.
(b) Distribution of Survivor Payments.--Payments under paragraph (1)
or (3) of subsection (a) to eligible survivors of an individual who is
a compensable Guam decedent or a compensable Guam victim who is
deceased shall be made as follows:
(1) If there is living a spouse of the individual, but no
child of the individual, all of the payment shall be made to
(2) If there is living a spouse of the individual and one or
more children of the individual, one-half of the payment shall
be made to the spouse and the other half to the child (or to
the children in equal shares).
(3) If there is no living spouse of the individual, but there
are one or more children of the individual alive, all of the
payment shall be made to such child (or to such children in
(4) If there is no living spouse or child of the individual
but there is a living parent (or parents) of the individual,
all of the payment shall be made to the parents (or to the
parents in equal shares).
(5) If there is no such living spouse, child, or parent, no
payment shall be made.
(c) Definitions.--For purposes of this Act:
(1) Compensable guam decedent.--The term ``compensable Guam
decedent'' means an individual determined under section 4(a)(1)
to have been a resident of Guam who died or was killed as a
result of the attack and occupation of Guam by Imperial
Japanese military forces during World War II, or incident to
the liberation of Guam by United States military forces, and
whose death would have been compensable under the Guam
Meritorious Claims Act of 1945 (Public Law 79-224) if a timely
claim had been filed under the terms of such Act.
(2) Compensable guam victim.--The term ``compensable Guam
victim'' means an individual determined under section 4(a)(1)
to have suffered, as a result of the attack and occupation of
Guam by Imperial Japanese military forces during World War II,
or incident to the liberation of Guam by United States military
forces, any of the following:
(A) Rape or severe personal injury (such as loss of a
limb, dismemberment, or paralysis).
(B) Forced labor or a personal injury not under
subparagraph (A) (such as disfigurement, scarring, or
(C) Forced march, internment, or hiding to evade
(3) Definitions of severe personal injuries and personal
injuries.--The Foreign Claims Settlement Commission shall
promulgate regulations to specify injuries that constitute a
severe personal injury or a personal injury for purposes of
subparagraphs (A) and (B), respectively, of paragraph (2).
SEC. 4. ADJUDICATION.
(a) Authority of Foreign Claims Settlement Commission.--
(1) In general.--The Foreign Claims Settlement Commission is
authorized to adjudicate claims and determine eligibility for
payments under section 3.
(2) Rules and regulations.--The chairman of the Foreign
Claims Settlement Commission shall prescribe such rules and
regulations as may be necessary to enable it to carry out its
functions under this Act. Such rules and regulations shall be
published in the Federal Register.
(b) Claims Submitted for Payments.--
(1) Submittal of claim.--For purposes of subsection (a)(1)
and subject to paragraph (2), the Foreign Claims Settlement
Commission may not determine an individual is eligible for a
payment under section 3 unless the individual submits to the
Commission a claim in such manner and form and containing such
information as the Commission specifies.
(2) Filing period for claims and notice.--All claims for a
payment under section 3 shall be filed within one year after
the Foreign Claims Settlement Commission publishes public
notice of the filing period in the Federal Register. In
addition, the Commission shall cause to be publicized the
public notice of the deadline for filing claims in newspaper,
radio, and television media on Guam.
(3) Adjudicatory decisions.--The decision of the Foreign
Claims Settlement Commission on each claim shall be by majority
vote, shall be in writing, and shall state the reasons for the
approval or denial of the claim. If approved, the decision
shall also state the amount of the payment awarded and the
distribution, if any, to be made of the payment.
(4) Deductions in payment.--The Foreign Claims Settlement
Commission shall deduct, from potential payments, amounts
previously paid under the Guam Meritorious Claims Act of 1945
(Public Law 79-224).
(5) Interest.--No interest shall be paid on payments awarded
by the Foreign Claims Settlement Commission.
(6) Remuneration prohibited.--No remuneration on account of
representational services rendered on behalf of any claimant in
connection with any claim filed with the Foreign Claims
Settlement Commission under this Act shall exceed one percent
of the total amount paid pursuant to any payment certified
under the provisions of this Act on account of such claim. Any
agreement to the contrary shall be unlawful and void. Whoever
demands or receives, on account of services so rendered, any
remuneration in excess of the maximum permitted by this section
shall be fined not more than $5,000 or imprisoned not more than
12 months, or both.
(7) Appeals and finality.--Objections and appeals of
decisions of the Foreign Claims Settlement Commission shall be
to the Commission, and upon rehearing, the decision in each
claim shall be final, and not subject to further review by any
court or agency.
(8) Certifications for payment.--After a decision approving a
claim becomes final, the chairman of the Foreign Claims
Settlement Commission shall certify it to the Secretary of the
Treasury for authorization of a payment under section 3.
(9) Treatment of affidavits.--For purposes of section 3 and
subject to paragraph (2), the Foreign Claims Settlement
Commission shall treat a claim that is accompanied by an
affidavit of an individual that attests to all of the material
facts required for establishing eligibility of such individual
for payment under such section as establishing a prima facie
case of the individual's eligibility for such payment without
the need for further documentation, except as the Commission
may otherwise require. Such material facts shall include, with
respect to a claim under paragraph (2) or (3) of section 3(a),
a detailed description of the injury or other circumstance
supporting the claim involved, including the level of payment
(10) Release of related claims.--Acceptance of payment under
section 3 by an individual for a claim related to a compensable
Guam decedent or a compensable Guam victim shall be in full
satisfaction of all claims related to such decedent or victim,
respectively, arising under the Guam Meritorious Claims Act of
1945 (Public Law 79-224), the implementing regulations issued
by the United States Navy pursuant thereto, or this Act.
(11) Penalty for false claims.--The provisions of section
1001 of title 18 of the United States Code (relating to
criminal penalties for false statements) apply to claims
submitted under this subsection.
SEC. 5. GRANTS PROGRAM TO MEMORIALIZE THE OCCUPATION OF GUAM DURING
WORLD WAR II.
(a) Establishment.--Subject to subsection (c) and in accordance with
this section, the Secretary of the Interior shall establish a grants
program under which the Secretary shall award grants for research,
educational, and media activities that memorialize the events
surrounding the occupation of Guam during World War II, honor the
loyalty of the people of Guam during such occupation, or both, for
purposes of appropriately illuminating and interpreting the causes and
circumstances of such occupation and other similar occupations during a
(b) Eligibility.--The Secretary of the Interior may not award to a
person a grant under subsection (a) unless such person submits an
application to the Secretary for such grant, in such time, manner, and
form and containing such information as the Secretary specifies.
(c) Authorization for Appropriations.--There are authorized to be
appropriated $5,000,000, to remain available for obligation until
September 30, 2011, to carry out the grant program under this section.
In addition, the Secretary of the Interior may use unobligated funds
made available to the Secretary that may be used for such purpose to
carry out this section.
PURPOSE OF THE BILL
The purpose of H.R. 1595 is to implement the
recommendations of the Guam War Claims Review Commission.
BACKGROUND AND NEED FOR LEGISLATION
December 8, 1941, brought with it the invasion and eventual
occupation of Guam by the Japanese Empire. The 22,000 residents
of Guam, who were U.S. nationals at the time, suffered personal
injury, forced labor, forced marches, internment, rape and
executions. After the U.S. regained administration over Guam,
efforts to compensate the residents of Guam for their suffering
began. In 1945, Congress passed the Guam Meritorious Claims Act
(GMCA), which authorized the Secretary of the Navy to appoint a
claims commission to adjudicate as well as settle war claims
not in excess of $5,000. Any claims in excess of this amount
were to be specifically forwarded to and approved by Congress.
Public Law 107-333, authored by former Congressman Robert
Underwood, established the Guam War Claims Review Commission to
issue a report regarding the extent to which the GMCA fulfilled
its intended purpose. This was submitted to Congress and the
Administration in June 2004. The Commission put forth multiple
recommendations based on the general interpretation that there
were inconsistencies in the implementation of the GMCA. In
particular, the Commission was troubled by areas that related
to other war claims precedent and the historical basis upon
which decisions were made during the claims process in the
GMCA. The Resources Committee held a July 21, 2004, oversight
hearing on the report. At the hearing, it became clear that
legislation would be necessary to provide any further
authorization of relief or recognition for the suffering of the
residents of Guam because the GMCA provided only a specific one
year time limit for adjudication and settlement of past claims.
The Commission not only reviewed the GMCA but also utilized
past legislative efforts with regard to this issue as well as
the Hopkins Committee Report for interpretation and comparison.
This report was submitted in 1947 and gave a general overview
of the progress and status of the governments of both Guam and
American Samoa. It is also important to note that the
Commission held multiple public hearings on Guam, at which it
heard testimony from both survivors of the occupation as well
as relatives of these individuals. A small portion of this
testimony was also featured at the hearing conducted by the
The primary function of H.R. 1595 is to implement the
recommendations of the Guam War Claims Review Commission.
After a hearing on H.R. 1595, as introduced, some Members
of the Committee expressed concerns regarding the costs of the
legislation, how the claims were handled in the bill, and the
potential for legal precedent established by the bill. In
short, Congress would be revisiting claims that had been
previously formally adjudicated.
As a result of these concerns, H.R. 1595, as ordered
reported, focuses on the importance of handling the claims of
the residents of Guam within the current federal framework,
while at the same time adhering to the general principles
espoused by the Guam War Claims Review Commission. Of
particular note, the legislation will set forth specific
guidance to the Foreign Claims Settlement Commission on how to
treat varying levels of awards that are relative to the
experience of the survivors of the war, as well as their heirs.
H.R. 1595 was introduced on April 13, 2005, by
Congresswoman Madeleine Bordallo (D-GU). The bill was referred
to the Committee on Resources. On April 20, 2005, the Full
Committee held a hearing on the bill. On November 16, 2005, the
Full Resources Committee met to consider the bill.
Congresswoman Bordallo offered an amendment in the nature of a
substitute to streamline the process for the consideration and
adjudication of claims. It removed the Recognition Commission,
the Recognition Fund, and the Trust Fund from the bill.
Further, it delineated the various award amounts for varying
levels of severity of experience relating to a claim. The
amendment also created a grant program at the Department of the
Interior for the remembrance of the Japanese military's
occupation of Guam. The amendment was adopted by unanimous
consent. The bill, as amended, was then ordered favorably
reported to the House of Representatives by unanimous consent.
Section 1. Short title; table of contents
Section 1 provides title of the bill and section headings
Section 2. Recognition of the suffering and loyalty of the residents of
Section 2 makes two statements recognizing the suffering
and hardships faced by the people of Guam during Japanese
occupation while also noting the loyalty of those who endured
while facing such difficult odds.
Section 3. Payments for Guam World War II claims
Subsection (a) delineates the amounts that claimants may be
awarded, including heirs, at levels of $25,000, $15,000,
$12,000, $10,000, and $7,000. Payments of claims are made from
the judgment fund at the Department of Treasury.
Subsection (b) describes the order in which survivors of
deceased residents from the Japanese occupation are entitled to
payments. This approach to delineating the payments to
survivors is based in existing war claims law. Successor claims
have been allowed under the War Claims Act of 1948, Wake Island
Amendment of 1962, War Claims Act of 1954, and the Micronesian
Claims Act of 1971. Under these Acts, potential claimants have
been limited to parents, a spouse, or children.
Subsection (c) defines the various levels of payments that
apply to varying degrees of loss or suffering, which includes
rape, forced labor, and internment. The concept of including
``internment'' as a category for awards is based on both the
War Claims Act of 1948 and the Wake Island Amendment of 1962,
which authorized compensation for internment of civilians by
Japanese military forces during World War II.
Section 4. Adjudication
Subsection (a) specifically sets out the authority of the
Foreign Claims Settlement Commission at the Department of
Justice to handle the war claims. The rules and regulations of
the Settlement Commission relating to its work will be printed
publicly. The work of the Settlement Commission will be crucial
to properly notifying potential claimants as well as
efficiently adjudicating the claims. To this end, the Committee
recommends the hiring of interpreters on Guam to expeditiously
and accurately translate the experience of those who speak only
Guam's local vernacular. The Committee also received
expressions of interest from Congresswoman Bordallo in having
the Foreign Claims Settlement Commission actually perform many
of its functions directly in Guam, including staffing and
The Committee recognizes through its work with the
Department of the Interior that due to its long-standing
relationship with Guam's leaders and its understanding of
Guam's history, the Department may be called upon to provide
assistance and expertise to the Settlement Commission as it
carries out its duties under this Act. The Committee expects
the Department of the Interior to provide such assistance as
may be requested by the Settlement Commission.
Subsection (b) describes various items of note relating to
claims for payment. This includes the filing period, the
deductions in payment as it relates to Public Law 79-224, the
appeals process, the certification of payment process, and
penalties for false claims submitted.
The Committee is aware that since the end of World War II,
many survivors of Guam's occupation have relocated. The
Committee encourages the Foreign Claims Settlement Commission,
with the support of the Department of the Interior, to
undertake activities to inform the greatest possible number of
potential eligible survivors and heirs of the opportunity to
submit a claim. These activities should include outreach to
organizations whose primary membership consists of former
residents of Guam. The Committee notes that such organizations
exist in the States of California, Washington, Texas, Nevada,
Hawaii, Arizona, and the greater Washington D.C. area.
Section 5. Grants program to memorialize the occupation of Guam during
World War II
Section 5 establishes a grant program for research,
educational and media activities that relate to properly
interpreting the causes and circumstances of the Japanese
military occupation of Guam. The Secretary of the Interior is
provided the authority to award the grants, which are
authorized to be appropriated at $5 million over five years.
COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Resources' oversight findings and recommendations
are reflected in the body of this report.
CONSTITUTIONAL AUTHORITY STATEMENT
Article I, section 8 of the Constitution of the United
States grants Congress the authority to enact this bill.
COMPLIANCE WITH HOUSE RULE XIII
1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the
Rules of the House of Representatives requires an estimate and
a comparison by the Committee of the costs which would be
incurred in carrying out this bill. However, clause 3(d)(3)(B)
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 402 of the
Congressional Budget Act of 1974.
2. Congressional Budget Act. As required by clause 3(c)(2)
of rule XIII of the Rules of the House of Representatives and
section 308(a) of the Congressional Budget Act of 1974, this
bill does not contain any new budget authority, credit
authority, or an increase or decrease in revenues or tax
expenditures. According to the Congressional Budget Office,
enactment of this bill would increase direct spending by
approximately $180 million over the 2006-2009 time frame.
3. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goal or
objective of this bill is to implement the recommendations of
the Guam War Claims Review Commission.
4. Congressional Budget Office Cost Estimate. Under clause
3(c)(3) of rule XIII of the Rules of the House of
Representatives and section 403 of the Congressional Budget Act
of 1974, the Committee has received the following cost estimate
for this bill from the Director of the Congressional Budget
H.R. 1595--Guam World War II Loyalty Recognition Act
Summary: H.R. 1595 would require the Federal Government to
compensate Guam residents for their treatment during the
island's occupation by Japanese military forces during World
War II. The legislation also would authorize the appropriation
of $5 million for a grant program to memorialize the occupation
of Guam during World War II.
CBO estimates that enacting this legislation would increase
direct spending by about $180 million over the 2006-2009 period
to make war-claim compensation payments. In addition, we
estimate that implementing the bill would cost $1 million in
2006 and $8 million over the 2006-2011 period, assuming
appropriation of the necessary amounts.
H.R. 1595 contains no intergovernmental mandates as defined
in the Unfunded Mandates Reform Act (UMRA) and would impose no
costs on state, local, or tribal governments.
H.R. 1595 contains a private-sector mandate, as defined in
UMRA, on individuals seeking to represent certain claimants who
are eligible to receive money from the Foreign Claims
Settlement Commission. The bill would limit the amount of
compensation individuals can receive to represent claimants who
file for claims with the Foreign Claims Settlement Commission
under this bill. CBO estimates, however, that there would be no
cost to comply with the mandate.
Estimated Cost to the Federal Government: The estimated
budgetary impact of H.R. 1595 is shown in the following table.
The costs of this legislation fall within budget function 800
By fiscal year, in millions of dollars--
2006 2007 2008 2009 2010 2011
CHANGES IN DIRECT SPENDING
Guam War-Claim Compensation Payments
Estimated Budget Authority............................ 20 100 60 0 0 0
Estimated Outlays..................................... 16 84 68 12 0 0
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Foreign Claims Settlement Commission
Estimated Authorization Level......................... 1 1 1 0 0 0
Estimated Outlays..................................... 1 1 1 0 0 0
Authorization Level................................... 0 5 0 0 0 0
Estimated Outlays..................................... 0 1 1 1 1 1
Estimated Authorization Level....................... 1 6 1 0 0 0
Estimated Outlays................................... 1 2 2 1 1 1
Basis of estimate: For this estimate, CBO assumes that the
bill will be enacted before the end of fiscal year 2006, that
the necessary amounts will be provided each year, and that
spending will follow historical patterns for similar programs.
Direct Spending, H.R. 1595 would authorize the Treasury to
make payments to the residents of Guam for deaths and injuries
suffered during Japanese occupation of the island in World War
II. The Foreign Claims Settlement Commission (FCSC), an agency
within the Department of Justice, would adjudicate such claims.
Under the bill, claimants would have one year to file with the
FCSC. H.R. 1595 specifies war-claim compensation payments of
$25,000 to survivors of those who died during the war, $15,000
for survivors who were raped or severely injured, $12,000 for
those who were forced into labor and suffered personal injury,
and $10,000 for survivors of a forced march or internment.
Heirs of deceased occupation survivors, including a spouse,
child, or parent, would be entitled to a payment of $7,000. In
addition, before making such payments, the FCSC would deduct
amounts previously paid under the Guam Meritorious Claims Act
of 1945 (Guam Act). Using information from the Guam War Claims
Review Commission and the Foreign Claims Settlement Commission,
CBO estimates that about $10 million was previously paid under
the Guam Act.
Guam Population During Occupation. Based on census data
from 1940, CBO estimates that approximately 22,000 Guamanians
were living on the island when it was seized and occupied by
Japanese forces on December 10, 1941. The Guam War Claims
Review Commission reported that, during the 32-month
occupation, virtually the entire population was either
interned, in hiding to avoid capture, or subjected to forced
march at one time or another while under Japanese occupation
during World War II. Thus, for this estimate, we assume all
Guamanians enumerated in the 1940 census would be eligible for
war-claims compensation payments under H.R. 1595.
Death Benefit Payments. Using information from the Guam War
Claims Commission, it is generally accepted that approximately
1,000 Guamanians died during the war before the island was
declared secure and liberated by U.S. forces on August 10,
1944. H.R. 1595 would provide a $25,000 war-claim compensation
death payment to survivors of those Guamanians who perished
during the occupation. The number of possible survivors and
claimants is unknown. Using information from the National
Center of Health Statistics regarding survival probabilities,
however, CBO estimates that there are approximately 700
survivors of the 1,000 Guamanians who died during the Japanese
occupation. Under that assumption, war-claim compensation death
payments would cost about $18 million. (If all Guamanians who
perished during the occupation were to have survivors who
claimed the $25,000 payment, the costs could reach $25
Other Benefit Payments. In addition, CBO estimates that all
surviving Guamanians (around 21,000) who were located on the
island during the occupation would be eligible for payments of
$10,000 to $15,000 (depending upon the level of injury). Heirs
of those individuals could receive a payment of $7,000. There
is no information to determine the number of surviving
Guamanians from the time of the Japanese occupation, their
level of injury, or the number of heirs of such individuals.
Using information from the National Center for Health
Statistics concerning survival probabilities, CBO estimates
that there are 7,000 survivors of the occupation and about
12,000 heirs that would be eligible for payment. Using an
average payment of $12,500 for survivors and $7,000 for heirs,
CBO estimates that payments to those survivors and heirs would
cost about $170 million. (If all Guamanian survivors and heirs
claimed an average payment of $11,000, the costs could reach
Total Benefit Payments. Using CBO's estimated claim
payments amounts under H.R. 1595 and accounting for the nominal
value of the previous war-claim payments of about $10 million,
CBO estimates that providing additional war-claims compensation
under H.R. 1595 would cost about $180 million. We expect that
those payments would be made over the 2006-2009 period because
of the time required to file, adjudicate, and process claims
Spending subject to appropriation: CBO estimates that
implementing H.R. 1595 would cost $8 million over the 2006-2011
period, assuming appropriation of the estimated amounts.
Foreign Claims Settlement Commission. Section 4 would
require the FCSC to determine claim eligibility and payment
amounts. In addition to promulgating rules and regulations,
FCSC would be required to publicize the program. Based on
information from FCSC, CBO estimates that additional staffing
and administrative costs as well as a media campaign in Guam
would cost $3 million over the 2006-2008 period.
Grant Program. Section 5 would authorize the appropriation
of $5 million for the Department of the Interior to establish a
grant program to support activities in memory of Guam's
occupation during World War II. Assuming the appropriation of
the authorized amount, CBO estimates that implementing this
provision would cost $5 million over the 2006-2011 period.
Estimated impact on state, local, and tribal government:
H.R. 1595 contains no intergovernmental mandate as defined in
UMRA and would impose no costs on state, local, or tribal
Estimated impact on the private sector: H.R. 1595 contains
a private-sector mandate as defined in UMRA. The bill would
limit the fees payable to attorneys or other individuals
seeking to represent claimants who are eligible to receive
money from the Foreign Claims Settlement Commission under this
bill. Specifically, section 4(b)6 would limit fees for
representational services to not more than 1 percent of the
amount that the claimant is paid. The limitation on
representational fees is a private-sector mandate as defined in
UMRA. Because the claimants in this program would be a new
source of business generated under the bill, representatives
would not lose fees that they could have collected in the
absence of the bill. CBO therefore estimates that the cost to
comply with the mandate would be zero--clearly well below the
annual threshold established by UMRA ($128 million in 2006,
adjusted annually for inflation).
Estimate prepared by: Federal Costs: Matthew Pickford and
Kathy Ruffing. Impact on State, Local, and Tribal Governments:
Marjorie Miller. Impact on the Private Sector: Fatimot Ladipo.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
COMPLIANCE WITH PUBLIC LAW 104-4
According to the Congressional Budget Office, this bill
imposes a private sector mandate on individuals seeking to
represent certain claimants who are eligible to receive money
from the Foreign Claims Settlement Commission by limiting the
amount of compensation received for these services. This limit
is one percent of the amount of the paid claim. However, the
Congressional Budget Office also estimates that there would no
cost to comply with this mandate; rather the bill creates new
business for those who chose to represent claimants under the
bill and the income from this new business would be a benefit
to the representatives.
The Committee adopts the analysis of the costs and benefits
of this mandate (including the qualitative and quantitative
analysis) found in the Congressional Budget Office cost
estimate included in this bill report. Furthermore, given the
nature of the mandate, the Committee concludes the private
sector mandate contained in this bill has no effect on health,
safety, and the protection of the natural environment.
PREEMPTION OF STATE, LOCAL OR TRIBAL LAW
This bill is not intended to preempt any State, local or
CHANGES IN EXISTING LAW
If enacted, this bill would make no changes in existing