ADVISORY
FROM THE COMMITTEE ON WAYS AND MEANS

SUBCOMMITTEE ON HUMAN RESOURCES

Herger Announces Hearing on Unemployment Fraud and Abuse

Congressman Wally Herger (R-CA), Chairman, Subcommittee on Human Resources of the Committee on Ways and Means, today announced that the Subcommittee will hold a hearing on efforts to reduce fraud and abuse of the Nation’s Unemployment Compensation (UC) system.  The hearing will take place on Tuesday, June 11, 2002, in room B-318 Rayburn House Office Building, beginning at 2:00 p.m.

In view of the limited time available to hear witnesses, oral testimony at this hearing will be from invited witnesses only.  Witnesses will include representatives of the U.S. Department of Labor, U.S. General Accounting Office, U.S. Department of Labor Office of the Inspector General, and other UC fraud and abuse experts.  However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing.

BACKGROUND:

The UC program provides benefits to unemployed workers who have a history of employment.  Within a broad Federal framework, each State designs its own benefits program and imposes taxes on employers to pay for regular UC benefits.  A separate Federal tax is imposed on employers to fund the Federal responsibilities under the system, including support of administrative expenses, loans to States, and the Federal half of extended benefits for certain workers.  In fiscal year 2002, the U.S. Department of Labor projects that 11.8 million laid-off workers will receive UC benefits for an average of 15.5 weeks.  With an average weekly benefit amount of $244, more than $44 billion in benefits will be paid.

Despite the size and expense of the UC program, in recent years program integrity activities have received relatively little Federal attention.  Several factors – including State funding of regular benefits, perceived Federal underfunding of anti-fraud and related administrative activities, and a strong economy – are often cited as reasons.  Congress recently addressed one concern through the passage of legislation providing additional Federal funds to States, which may be used for additional program integrity activities, among other purposes.  As signed into law on March 22, 2002, this legislation (P.L. 107-147) provided for the immediate distribution of $8 billion in surplus Federal UC funds to States, among other provisions.

In announcing the hearing, Chairman Herger stated:  “During the recent economic slowdown, the Nation’s Unemployment Compensation program has been an important safety net for millions of hard-working Americans who lost their jobs.  Congress recently strengthened that safety net by providing up to an additional 13 weeks of unemployment benefits nationwide.  While we provide benefits to millions of unemployed American workers and their families, we also have oversight responsibilities to ensure benefits are going to the right people.  That’s part of the reason we also provided States an additional $8 billion in Federal funds to support anti-fraud efforts, among other purposes.  This hearing will review current anti-fraud efforts and additional measures to better ensure program integrity.”

FOCUS OF THE HEARING:

The hearing will focus on waste, fraud, and abuse involving UC benefits and consider additional measures to better ensure program integrity.

DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:

Please Note:  Due to the change in House mail policy, any person or organization wishing to submit a written statement for the printed record of the hearing should send it electronically to hearingclerks.waysandmeans@mail.house.gov, along with a fax copy to (202) 225-2610, by the close of business, Tuesday, June 25, 2002.  Those filing written statements who wish to have their statements distributed to the press and interested public at the hearing should deliver their 200 copies to the Subcommittee on Human Resources in room B-317 Rayburn House Office Building, in an open and searchable package 48 hours before the hearing.  The U.S. Capitol Police will refuse sealed-packaged deliveries to all House Office Buildings.

FORMATTING REQUIREMENTS:

Each statement presented for printing to the Committee by a witness, any written statement or exhibit submitted for the printed record or any written comments in response to a request for written comments must conform to the guidelines listed below.  Any statement or exhibit not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.

1. Due to the change in House mail policy, all statements and any accompanying exhibits for printing must be submitted electronically to hearingclerks.waysandmeans@mail.house.gov, along with a fax copy to (202) 225-2610, in Word Perfect or MS Word format and MUST NOT exceed a total of 10 pages including attachments.  Witnesses are advised that the Committee will rely on electronic submissions for printing the official hearing record. 

2.  Copies of whole documents submitted as exhibit material will not be accepted for printing.  Instead, exhibit material should be referenced and quoted or paraphrased.  All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.

3. Any statements must include a list of all clients, persons, or organizations on whose behalf the witness appears.  A supplemental sheet must accompany each statement listing the name, company, address, telephone and fax numbers of each witness.

Note:  All Committee advisories and news releases are available on the World Wide Web at http://waysandmeans.house.gov.

The Committee seeks to make its facilities accessible to persons with disabilities. If you are in need of special accommodations, please call (202) 225-1721 or (202) 226-3411 TTD/TTY in advance of the event (four business days notice is requested). Questions with regard to special accommodation needs in general (including availability of Committee materials in alternative formats) may be directed to the Committee as noted above.