80 STAT. ]
PUBLIC LAW 89-488-JULY 4, 1966
255
tent person while he is incompetent and has no duly appointed legal representative." RECOVERIES IN ACTIONS AGAINST THIRD PARTIES
SEC. 10. (a) The third paragraph of section 26 of the Federal Employees' Compensation Act is amended by inserting before the period at the end thereof the following: ": Provided, That in any event the beneficiary shall be paid not less than one-fifth of the net amount of any settlement or recovery remaining after the expenses thereof have been deducted". (b) Paragraph (B) of section 27 of such Act is amended by inserting before the period at the end thereof the following: ": Provided, That the beneficiary shall have the right to retain not less than onefifth of the net amount of such money or other property remaining after the expenses of a suit or settlement have been deducted, and, in addition, to retain an amount equivalent to a reasonable attorney's fee proportionate to the refund to the United States". (c) Section 35 of such Act is amended by adding at the end thereof the following new subsection: " (d) As used in subsection (a) of this section, the term 'administrative expenses' does not include expenses for legal services rendered by or on behalf of the Secretary under sections 26 and 27."
^ ^^^ ^^•
5 USC 777.
5 USC 785.
HEARINGS
SEC. 11. (a) The first sentence of section 32 of the Federal Employees' Compensation Act is amended by inserting after the comma the ^ ^^^ ^^3. following: "including rules and regulations for the conduct of hearings under section 36,". (b) Section 36 of such Act is amended by inserting " (a) " after 5 USC 786. "SEC. 36." and by adding the following at the end thereof: " (b)(1) Prior to any review under section 37, any claimant for 5 USC 787. compensation not satisfied with a decision of the Secretary under this section shall, upon request made within thirty days after the date of issuance of such decision, be afforded an opportunity for a hearing upon his claim before a representative of the Secretary. A t such hearing, the claimant shall be afforded an opportunity to present evidence in further support of his claim. Within thirty days after the conclusion of such hearing, the Secretary shall notify the claimant in writing of his further decision on such claim and any modifications of the award he may make and of the basis of his decision. "(2) In conducting such hearing the representative of the Secretary shall not be bound by common law or statutory rules of evidence, by technical or formal rules of procedure, or by section 5 of the Administrative Procedure Act except as provided by this Act, but may 5°u^s*c*io^o\^' conduct such hearing in such manner as to best ascertain the rights of the claimant. For this purpose he shall receive such relevant evidence as may be adduced by the claimant and shall, in addition, receive such other evidence as he may determine to be necessary or useful in evaluating such claim." SECRETARY ' S RULEMAKING AUTHORITY IN EMPLOYMENT OUTSIDE THE UNITED STATES
SEC. 12. Section 32 of the Federal Employees' Compensation Act is amended by adding the following: "In the adjudication of claims under section 42 of this Act, the Secretary shall have the authority to determine the nature and extent of the proofs and evidence required
s use 793.
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