[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1023 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1023

To provide procedures for claims for compassionate payments with regard 
 to individuals with blood-clotting disorders, such as hemophilia, who 
   contracted human immunodeficiency virus due to contaminated blood 
                               products.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 23, 1995

 Mr. Goss (for himself, Mr. Quillen, Mr. Engel, Mr. Miller of Florida, 
   Mrs. Meek of Florida, Mr. Traficant, Mr. Stearns, Mr. English of 
 Pennsylvania, Mr. Deutsch, Mr. Gejdenson, Mr. Calvert, Ms. Furse, Mr. 
Bartlett of Maryland, Mr. Studds, Mrs. Fowler, Mr. Rahall, Mr. Hastings 
of Florida, Mr. Nadler, Mr. Shays, Mr. Becerra, Mrs. Seastrand, and Mr. 
   McHale) introduced the following bill; which was referred to the 
                       Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
To provide procedures for claims for compassionate payments with regard 
 to individuals with blood-clotting disorders, such as hemophilia, who 
   contracted human immunodeficiency virus due to contaminated blood 
                               products.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Ricky Ray Hemophilia Relief Fund Act 
of 1995''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds that--
            (1) approximately \1/2\ of all individuals in the United 
        States who suffer from blood-clotting disorders, such as 
        hemophilia, were exposed, through the use of blood-clotting 
        agents, to human immunodeficiency virus (HIV), which causes the 
        fatal illness known as acquired immune deficiency syndrome 
        (AIDS);
            (2) the Federal Government has a shared responsibility with 
        the blood-products industry for protecting the safety of the 
        blood supply of the Nation and for regulating the safety of 
        blood-clotting agents;
            (3) blood and blood derivatives (including blood-clotting 
        agents) are subject to more stringent regulation by the Federal 
        Government than are most products regulated under the Federal 
        Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.), because 
        blood and blood derivatives are subject to regulation under the 
        Public Health Service Act (42 U.S.C. 201 et seq.) as well as 
        the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et 
        seq.);
            (4) individuals with blood-clotting disorders, such as 
        hemophilia, were at an unusually high and largely preventable 
        risk of contracting HIV during the period beginning in 1980 
        (when technology became available to pasteurize blood-clotting 
        agents) and ending in 1987 (when the last mass recall of 
        contaminated anti-hemophilic factor (AHF) occurred);
            (5) during the period beginning in 1980 and ending in 1987, 
        despite growing concerns about blood-borne viruses such as 
        hepatitis and HIV, the Federal Government did not require the 
        blood-products industry to use available technology to ensure 
        the safety of blood products that were allowed on the market 
        for sale to individuals with blood-clotting disorders, such as 
        hemophilia;
            (6) the Federal Government did not require that, to allow 
        for fully informed decisionmaking regarding treatment options, 
        the blood-products industry provide directly to individuals 
        with blood-clotting disorders, such as hemophilia, all 
        available information about the risks of contaminated blood 
        products;
            (7) the Federal Government failed to fulfill its 
        responsibility to properly regulate the blood-products 
        industry, and thus exposed individuals with blood-clotting 
        disorders, such as hemophilia, and their families to potential 
        infection with a fatal disease;
            (8) 17 other developed countries have established 
        government compensation programs to assist individuals with 
        blood-clotting disorders, such as hemophilia, who were infected 
        with HIV;
            (9) individuals with blood-clotting disorders, such as 
        hemophilia, who have HIV infections incur annual medical costs 
        that often exceed $150,000, due to the expense of the necessary 
        medications and the complications caused by the combination of 
        the 2 illnesses;
            (10) Ricky Ray was born with hemophilia and, like his 2 
        younger brothers and thousands of others, became infected with 
        the deadly HIV through use of contaminated blood-clotting 
        products;
            (11) Ricky Ray and his family have brought national 
        attention to the suffering of individuals with blood-clotting 
        disorders, such as hemophilia, and their families, who have 
        been devastated by HIV; and
            (12) Ricky Ray died at the age of 15 on December 13, 1992, 
        of hemophilia-associated AIDS, and this Act should bear his 
        name.
    (b) Purpose.--It is the purpose of this Act to establish a 
procedure to make partial restitution to individuals who were infected 
with HIV after treatment, during the period beginning in 1980 and 
ending in 1987, with contaminated blood products.

SEC. 3. TRUST FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a trust fund to be known as the ``Ricky Ray Hemophilia 
Relief Fund'', which shall be administered by the Secretary of the 
Treasury.
    (b) Investment of Amounts in Fund.--Amounts in the Fund shall be 
invested in accordance with section 9702 of title 31, United States 
Code, and any interest on and proceeds from any such investment shall 
be credited to and become part of the Fund.
    (c) Availability of Fund.--Amounts in the Fund shall be available 
only for disbursement by the Attorney General under section 5.
    (d) Termination.--The Fund shall terminate upon the expiration of 
the 5-year period beginning on the date of the enactment of this Act. 
If all of the amounts in the Fund have not been expended by the end of 
the 5-year period, investments of amounts in the Fund shall be 
liquidated, the receipts of such liquidation shall be deposited in the 
Fund, and all funds remaining in the Fund shall be deposited in the 
miscellaneous receipts account in the Treasury of the United States.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to the Fund to carry out this Act $1,000,000,000.

SEC. 4. CLAIMS RELATING TO BLOOD-CLOTTING DISORDERS AND HIV.

    Any individual who submits to the Attorney General written medical 
documentation that the individual has an HIV infection shall receive 
$125,000, from amounts available in the Fund, if each of the following 
conditions is met:
            (1) Characteristics of individual.--The individual is 
        described in 1 of the following subparagraphs:
                    (A) The individual has any form of blood-clotting 
                disorder, such as hemophilia, and was treated with 
                blood-clotting agents (in the form of blood components 
                or blood products) at any time during the period 
                beginning on January 1, 1980, and ending on December 
                31, 1987.
                    (B) The individual--
                            (i) is the lawful spouse of an individual 
                        described in subparagraph (A); or
                            (ii) is the former lawful spouse of an 
                        individual described in subparagraph (A) and 
                        was the lawful spouse of the individual at any 
                        time after a date, within the period described 
                        in such subparagraph, on which the individual 
                        was treated as described in such subparagraph.
                    (C) The individual acquired the HIV infection 
                through perinatal transmission from a parent who is an 
                individual described in subparagraph (A) or (B).
            (2) Claim.--A claim for the payment is filed with the 
        Attorney General by or on behalf of the individual.
            (3) Determination.--The Attorney General determines, in 
        accordance with section 5(b), that the claim meets the 
        requirements of this Act.

SEC. 5. DETERMINATION AND PAYMENT OF CLAIMS.

    (a) Establishment of Filing Procedures.--The Attorney General shall 
establish procedures under which individuals may submit claims for 
payment under this Act. The procedures shall include a requirement that 
each claim filed under this Act include written medical documentation 
that the relevant individual described in section 4(1)(A) has a blood-
clotting disorder, such as hemophilia, and was treated as described in 
such section.
    (b) Determination of Claims.--For each claim filed under this Act, 
the Attorney General shall determine whether the claim meets the 
requirements of this Act.
    (c) Payment of Claims.--
            (1) In general.--The Attorney General shall pay, from 
        amounts available in the Fund, each claim that the Attorney 
        General determines meets the requirements of this Act.
            (2) Payments in case of deceased individuals.--
                    (A) In general.--In the case of an individual 
                referred to in section 4 who is deceased at the time 
                that payment is made under this section on a claim 
                filed by or on behalf of the individual, the payment 
                shall be made to the estate of the individual, if such 
                an estate exists. If no such estate exists, the payment 
                may be made only as follows:
                            (i) If the individual is survived by a 
                        spouse who is living at the time of payment, 
                        the payment shall be made to such surviving 
                        spouse.
                            (ii) If the individual is not survived by a 
                        spouse described in clause (i), the payment 
                        shall be made in equal shares to all children 
                        of the individual who are living at the time of 
                        the payment.
                            (iii) If the individual is not survived by 
                        a person described in clause (i) or (ii), the 
                        payment shall be made in equal shares to the 
                        parents of the individual who are living at the 
                        time of payment.
                    (B) Filing of claim by estate or survivor.--If an 
                individual eligible for payment under section 4 dies 
                before filing a claim under this Act--
                            (i) the estate of the individual, if such 
                        an estate exists, may file a claim for payment 
                        under this Act on behalf of the individual; or
                            (ii) if no such estate exists, a survivor 
                        of the individual may file a claim for payment 
                        under this Act on behalf of the individual if 
                        the survivor may receive payment under 
                        subparagraph (A).
                    (C) Definitions.--For purposes of this paragraph:
                            (i) The term ``spouse'' means an individual 
                        who was lawfully married to the relevant 
                        individual.
                            (ii) The term ``child'' includes a 
                        recognized natural child, a stepchild who lived 
                        with the relevant individual in a regular 
                        parent-child relationship, and an adopted 
                        child.
                            (iii) The term ``parent'' includes fathers 
                        and mothers through adoption.
            (3) Timing of payment.--The Attorney General may not make a 
        payment on a claim under this Act before the expiration of the 
        90-day period beginning on the date of the enactment of this 
        Act or after the expiration of the 5-year period beginning on 
        the date of the enactment of this Act.
            (4) Choice of payment methods.--An individual whom the 
        Attorney General determines to be entitled to a payment under 
        subsection (c)(1) may choose to receive the payment in the form 
        of--
                    (A) a lump sum of $125,000, which shall be paid not 
                later than 90 days after the Attorney General 
                determines that the individual is entitled to receive 
                payment under subsection (c)(1); or
                    (B) 4 subpayments, of which--
                            (i) the 1st subpayment shall consist of 
                        $50,000 and shall be paid not later than 90 
                        days after the Attorney General determines that 
                        the individual is entitled to receive payment 
                        under subsection (c)(1); and
                            (ii) the 2d, 3d, and 4th subpayments 
shall each consist of $25,000 and shall each be paid upon the 
expiration of the 6-month period beginning on the date of the preceding 
subpayment.
    (d) Action on Claims.--The Attorney General shall complete the 
determination required by subsection (b) regarding a claim not later 
than 90 days after the claim is filed under this Act.
    (e) Payment in Full Settlement of Claims Against United States.--
Payment under this Act, when accepted by an individual described in 
section 4 or by the estate of or a survivor of such an individual on 
behalf of the individual, shall be in full satisfaction of all claims 
of or on behalf of the individual against the United States (but not 
against any other person or entity) that arise out of both an HIV 
infection and treatment, at any time during the period beginning on 
January 1, 1980, and ending on December 31, 1987, with blood-clotting 
agents (in the form of blood components or blood products).
    (f) Administrative Costs Not Paid From Fund.--No costs incurred by 
the Attorney General in carrying out this Act may be paid from the Fund 
or set off against, or otherwise deducted from, any payment made under 
subsection (c)(1).
    (g) Termination of Duties of Attorney General.--The duties of the 
Attorney General under this section shall cease when the Fund 
terminates.
    (h) Treatment of Payments Under Other Laws.--A payment under 
subsection (c)(1) to an individual or an estate--
            (1) shall be treated for purposes of the internal revenue 
        laws of the United States as damages received on account of 
        personal injuries or sickness; and
            (2) shall not be included as income or resources for 
        purposes of determining the eligibility of the individual to 
        receive benefits described in section 3803(c)(2)(C) of title 
        31, United States Code, or the amount of such benefits.
    (i) Use of Existing Resources.--The Attorney General should use 
funds and resources available to the Attorney General to carry out the 
functions of the Attorney General under this Act.
    (j) Regulatory Authority.--The Attorney General may issue 
regulations necessary to carry out this Act.
    (k) Time of Issuance of Regulations, Guidelines, and Procedures.--
The initial regulations, guidelines, and procedures to carry out this 
Act shall be issued not later than 90 days after the date of the 
enactment of this Act.
    (l) Judicial Review.--An individual whose claim for compensation 
under this Act is denied may seek judicial review solely in a district 
court of the United States. The court shall review the denial on the 
administrative record and shall hold unlawful and set aside the denial 
if the denial is arbitrary, capricious, an abuse of discretion, or 
otherwise not in accordance with law.

SEC. 6. LIMITATION ON TRANSFER AND NUMBER OF CLAIMS.

    (a) Claims Not Assignable or Transferable.--A claim under this Act 
shall not be assignable or transferable.
    (b) 1 Claim With Respect to Each Victim.--With respect to each 
individual described in subparagraph (A), (B), or (C) of section 4(1), 
the Attorney General may not pay more than 1 claim filed to receive 
compensation under this Act for the harm suffered by the individual.

SEC. 7. LIMITATIONS ON CLAIMS.

    The Attorney General may not pay any claim filed under this Act 
unless the claim is filed within 3 years after the date of the 
enactment of this Act.

SEC. 8. CERTAIN CLAIMS NOT AFFECTED BY PAYMENT.

    A payment made under section 5(c)(1) shall not be considered as any 
form of compensation, or reimbursement for a loss, for purposes of 
imposing liability on the individual receiving the payment, on the 
basis of such receipt, to repay any insurance carrier for insurance 
payments or to repay any person on account of worker's compensation 
payments. A payment under this Act shall not affect any claim against 
an insurance carrier with respect to insurance or against any person 
with respect to worker's compensation.

SEC. 9. LIMITATION ON AGENT AND ATTORNEY FEES.

    Notwithstanding any contract, the representative of an individual 
may not receive, for services rendered in connection with the claim of 
an individual under this Act, more than 5 percent of a payment made 
under this Act on the claim. Any such representative who violates this 
section shall be fined not more than $50,000.

SEC. 10. DEFINITIONS.

    For purposes of this Act:
            (1) The term ``AIDS'' means acquired immune deficiency 
        syndrome.
            (2) The term ``Fund'' means the Ricky Ray Hemophilia Relief 
        Fund.
            (3) The term ``HIV'' means human immunodeficiency virus.
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