H.R. 4243, GOVERNMENT WASTE, FRAUD, AND ERROR REDUCTION ACT OF 1998; H.R. 2347, THE FEDERAL BENEFIT VERIFICATION AND INTEGRITY ACT; AND HR. 2063, THE DEBT COLLECTION WAGE INFORMATION ACT OF 1997 HEARING BEFORE THE SUBCOMMITTEE ON GOVERNMENT MANAGEMENT, INFORMATION, AND TECHNOLOGY OF THE COMMITTEE ON GOVERNMENT REFORM AND OVERSIGHT HOUSE OF REPRESENTATIVES ONE HUNDRED FIFTH CONGRESS SECOND SESSION ON LR. 4243 TO REDUCE WASTE, FRAUD, AND ERROR IN GOVERNMENT PROGRAMS BY MAKING IMPROVEMENTS WITH RESPECT TO FEDERAL MANAGE- MENT AND DEBT COLLECTION PRACTICES, FEDERAL PAYMENT SYS- TEMS, FEDERAL BENEFIT PROGRAMS, AND FOR OTHER PURPOSES AND ON HLR. 2347 TO ENSURE THE ACCURACY OF INFORMATION REGARDING THE ELIGI- BILITY OF APPLICANTS FOR BENEFITS UNDER FEDERAL BENEFIT PROGRAMS AND ON LR. 2063 TO DIRECT THE SECRETARY OF HEALTH AND HUMAN SERVICES TO MAKE AVAILABLE TO THE SECRETARY OF THE TREASURE INFORMA- TION FROM THE NATIONAL DIRECTORY OF NEW HIRES FOR USE IN COLLECTING DELINQUENT DEBT OWED TO THE FEDERAL GOVERN- MENT, AND FOR OTHER PURPOSES MARCH 2, 1998 Serial No. 105-143 Printed for the use of the Committee on Government Reform and Oversight ae U.S. GOVERNMENT PRINTING OFFICE 0-022 CC WASHINGTON : 1998 For sale by the U.S. Government Printing Office ‘Superintendent of Documents, Congressional Sales Office, Washington, DC 20402 ISBN 0-16-057316-5COMMITTEE ON GOVERNMENT REFORM AND OVERSIGHT DAN BURTON, Indiana, Chairman BENJAMIN A. GILMAN, New York HENRY A. WAXMAN, California J. DENNIS HASTERT, Illinois TOM LANTOS, California CONSTANCE A. MORELLA, Maryland ROBERT E. WISE, Jn., West Virginia CHRISTOPHER SHAYS, Connecticut ‘MAJOR R. OWENS, New York STEVEN SCHIFF, New Mexico EDOLPHUS TOWNS, New York CHRISTOPHER COX, California PAUL E. KANJORSKI, Pennsylvania ILEANA ROS-LEHTINEN, Florida GARY A. CONDIT, California JOHN M. McHUGH, New York CAROLYN B. MALONEY, New York STEPHEN HORN, California THOMAS M, BARRETT, Wisconsin JOHN L. MICA, Florida ELEANOR HOLMES NORTON, Washington, ‘THOMAS M. DAVIS, Virginia De DAVID M. McINTOSH, Indiana CHAKA FATTAH, Pennsylvania MARK E. SOUDER, Indiana ELIJAH E. CUMMINGS, Maryland JOE SCARBOROUGH, Florida DENNIS J. KUCINICH, Ohio JOHN B. SHADEGG, ‘Arizona ROD R. BLAGOJEVICH, Illinois STEVEN C, LATOURETTE, Ohio DANNY K. DAVIS, Illinois MARSHALL “MARK” SANFORD, South JOHN F. TIERNEY, Massachusetts Carolina JIM TURNER, Texas JOHN E. SUNUNU, New Hampshire THOMAS H. ALLEN, Maine PETE SESSIONS, Texas HAROLD E. FORD, Jr., Tennessee MICHAEL PAPPAS, New Jersey = VINCE SNOWBARGER, Kensas BERNARD SANDERS, Vermont BOB BARR, Georgia (Independent) DAN MILLER, Florida Kevin BINGER, Staff Director DanIgL R. MOLL, Deputy Staff Director ‘WinttaM Moscuenta, Deputy Counsel and Parliamentarian dJupiTH McCoy, Chief Clerk Pun. ScHILIRO, Minority Staff Director SUBCOMMITTEE ON GOVERNMENT MANAGEMENT, INFORMATION, AND TECHNOLOGY STEPHEN HORN, California, Chairman PETE SESSIONS, Texas DENNIS J. KUCINICH, Ohio THOMAS M. DAVIS, Virginia PAUL E. KANJORSKI, Pennsylvania JOE SCARBOROUGH, Florida MAJOR R. OWENS, New York ‘MARSHALL “MARK” SANFORD, South CAROLYN B. MALONEY, New York Carolina JIM TURNER, Texas JOHN E. SUNUNU, New Hampshire EX OFFICIO DAN BURTON, Indiana HENRY A. WAXMAN, California J. RUSSELL GEORGE, Staff Director and Chief Counset ‘MARK BRASHER, Senior Policy Director ‘Marruew EBERT, Clerk MARK STEPHENSON, Minority Professional Staff Member aCONTENTS Page Hearing held on March 2, 1998 1 Text of H.R. 4243 .. 3 Text of HR. 2347 4 Text of HR. 2063 15 Statement of: Brian, Danielle, executive director, Project on Government Oversight ...... 115 DeSeve, G. Edward, Acting Deputy Director for Management, Office of Management and Budget. 28 Hammond, Don, Acting Fiscal Assistant Secretary, Department of the ‘Treasury Lee, Karen, Acting inspector General, Small Business Administration, and Chairperson, the President's Council on Integrity and Efficiency, Ad Hoe Committee on Benefit Eligibility Verification .. Longanecker, David, Assistant Secretary for Postsecondary Education, Department of Education, accompanied by Tom Pestka, Director, Debt jon Service Letters, statements, etc., submitted for the record by: Brian, Danielle, executive director, Project on Government Oversight, B statement of ug DeSeve, G. Edward, Acting Deputy Directo: ‘Management and Budget: Information concerning Export-Import bank 42 Prepared statement 33. Hammond, Don, Acting Fis ‘Treasury, prepared statement of 4 Horn, Hon! Stephen, a Represent California, p statement of WwW Kucinich, Hon. Dennis J., a Rey of Ohio, prepared statement 21 , ing Inspector General, , ‘and Chairperson, the President's Council on Integrity and Efficiency, Ad Hoc Committee on Benefit Eligibility Verification, prepared state. ment of 105 orperenent of) Edenton Prepared statement of. 91 faloney, Hon. Carolyn B., a Representative in Congre: of New York, prepared statement of .. 25 an