Date: 1983-10-24
Speaker: SAM B. HALL (democrat)
Chamber: H

Mr. Speaker. L yield myself such time as I may consu mle. The Purpose of IhR. 597. as amended. Is to amend tile claims settlement piovisions of sections 2733. 2734. and 2736 of title 10. United States Code. and section 715 of title 32 of that code. to Inciease tile maximum amount of a claim that thle military departments can pay administratively tinder those sections. The bill would allow anl increase in the delegation of auithority to settle and pay certain of such claims and would authorize departmental employees as well as Armed Forces officers to act tinder claims procedure. Thle bill wvas introduced in accordance with anl executive communication transmitted to the Speaker of the House of Repiresentatives on June 24. 1982. by thle Department of thle Army in behalf of the Department of Defense. The Subcommittee on Administrative Law and Governmental Relations held a hearing on the bill on March 21. 1983. Following the hearing the bill was favorably considered by the subcommittee with ain amlendmnent restating the substance of the bill as proposed by thle Department of Defense with technical and clarifying amendments. Thle revised language conforms with the standard form utilized In title 10 of the United States Code. and corrects the reference to the Supplemental Appropriation Act so that the reference is to section 1304 of recently codified title 31. Thle bill H.R. 597 would increase the administrative authority of thle Armed Forces to settle and pay claims which result from noncombat activity. As was pointed out in the executive communication. the present $25.000 limits on the claims payment as contained in the Military Claims Act. section 2733. and the Foreign Claims Act. section 2734. of title 10. United States Code. and as to the National Guard claims in section 715 of title 32. United States Code. are too low to provide for effective and efficient claims administration. This bill. in raising the limits to $100.000 will remedy that situation and also enable thle military departments and thle Coast Guard to act promptly to minimize the financial hardships of thle persons who stiffer injury or loss due to military activity. Sections 2733 and 715 now provide that thle Judge Advocates of thle military departments and thle Chief Countsel of the Coast Guard may delegate settlement authority for tip to $5.000 to any officer of the Armed Forces concerned. This limit Is aiso unrealistic in thle light of piesent conditions. As anl example of current costs. the exectitive communication pointed out that thle value of automobiles frequlently exceed that amoumnt. Also. thle delays catused by the low limit on delegated authority add to thle amount of claims since thle claimants are forced to rent substitute vehicles for those lost due to some military activity. Thle bill would remedy tis problem conmcerning thle delegat ion of settlement authority by raising this limit to $25.000. Finaliy. the bill would allow thle secretary of a department more flexibility in delegating claims settlement atithomity to officers or emnployees under his jurisdiction. Cutrrent provisions limit the authority to settle suich claims to officers of an armed force. The proposed legislation would iemmit delegation of that authority to civilian employees who with iare expeption. would be attorneys. At the subcommittee heating onl March 23. 1983. the witness representing thle Department of Defense stated that the prirnmary thrust of the proposed amendments to section 2733 and 2731 of title 10. and to section 715 of title 32 is to facilitate daily claims operational activities Of thle military services. It was also pointed otit that these amendments will mnake it possible for thle departments concerned to pirovide for flexible and dependable methods to expedite the settlement of claims arising from military activity. These three sections have several things in common: they provide administrative. riot judicial. relief. they are subject to a 2year statute limitations. and claim settlements are final and conclusive. In addition to the three sections jtist discussed. thle bill would amend section 2736 of title 10 to raise thle limit for claims payment under that section from $1.000 to $10.000. Currently. under section 2736. in -.ccordance with regulations of thle H 8548- CO Secretary of the military department concerned. an amount not in excess of $1.000 may be paid in advance of the submission of any claim to or for any person. or his legal representative. who ltis been killed or injured or whose property has been damaged or lost. tinder circumstances for which allowance of a claim is authorized tinder the Military Claims Act. the National Guard Claims Act or the Foreign Claims Act. The basic change to sections 2733 and 2734 of title 10 and section 715 of title 32 is to increase the amount a military department or the Coast Guard may settle administratively to $100.000. When the Secretary concerned determines that a claim in excess of that amount is meritorious. the first $100.000 of the claim could be paid and the balance would be certified to the Comptroller General for payment tinder the authority presently provided for the payment of such claitms in section 1304 of title 31. The same procedure is now followed for claims payments subject to the current $25.000 limit for administrative settlement in these three sections. Now payments of amounts in excess of $25.000 for approved claims are being paid upon authorization by the Comptroller General in accordance with the provisions of section 1304 of title 31. The General Accounting Office supports this bill. The General Accounting Office pointed out that administrative paperwork will be reduced and allowable claims of $100.000 and the first $100.000 of claims over $100.000 will be paid 4 to 6 weeks faster than is now the case. There is expected to be no increase in claims payment. The amendments shift the responsibility and fiscal accountability to the department concerned since the administrative settlements tip to $100.000 would have to be made from departmental funds. The General Accounting Office testimony pointed this out and stated that with the amendments. there would be the same overall level of Treasury disbursement for claims affected by the amendments provided for in H.R. 597. In fact the simplification and expedition of processing and paying claims up to $100.000 could serve to reduce the cost of claims administration. The bill makes no changes in the policies concerning claims payment expressed in these sections. However. the increased fiscal accountability of the department is. in the opinion of the Committee. a very desirable feature of these amendments. This was commented upon by the General AccountIng Office witness at the hearing when he stated: ". . . an agency should bear some measure of accountability. within reasonable limits. for claims of that type resulting from its activities or from the acts or omissions of its employees. Direct exposure to the fiscal consequences of its action may provide greater incentive to the agency to undertake risk analysis. and. where ap-