[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 358 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 358

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 26, 1997

Mr. DeWine (for himself and Mr. Graham) introduced the following bill; 
 which was read twice and referred to the Committee on Labor and Human 
                               Resources

_______________________________________________________________________

                                 A BILL


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

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Ricky Ray 
Hemophilia Relief Fund Act of 1997''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Section 1. Short title; table of contents.
                    TITLE I--HEMOPHILIA RELIEF FUND

Sec. 101. Findings and purpose.
Sec. 102. Ricky Ray Hemophilia Relief Fund.
Sec. 103. Compassionate payment relating to individuals with blood-
                            clotting disorders and HIV.
Sec. 104. Determination and payment.
Sec. 105. Limitation on transfer of rights and number of petitions.
Sec. 106. Time limitation.
Sec. 107. Certain claims not affected by payment.
Sec. 108. Limitation on agent and attorney fees.
Sec. 109. Definitions.
     TITLE II--TREATMENT OF CERTAIN PRIVATE SETTLEMENT PAYMENTS IN 
  HEMOPHILIA-CLOTTING-FACTOR SUIT UNDER THE MEDICAID AND SSI PROGRAMS

Sec. 201. Treatment of certain private settlement payments in 
                            hemophilia-clotting-factor suit under 
                            certain the medicaid and SSI programs.

                    TITLE I--HEMOPHILIA RELIEF FUND

SEC. 101. FINDINGS AND PURPOSE.

    (a) Findings.--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) blood-clotting agents (called ``antihemophilic 
        factor'') used in the treatment of blood-clotting disorders, 
        such as hemophilia, have been manufactured from the blood 
        plasma of 1,000 to 20,000 (or more) donors, placing persons 
        with hemophilia at particularly high risk for HIV and other 
        blood-borne diseases;
            (3) the Centers for Disease Control, in a weekly morbidity 
        and mortality report (MMWR) issued on July 16, 1982, first 
        identified individuals with hemophilia who had contracted 
        illnesses now known to be associated with HIV infection and 
        suggested the possible transmission of an infectious agent 
        through blood-clotting agents;
            (4) the National Blood Policy, published by the Secretary 
        of Health, Education, and Welfare on September 10, 1974, 
        outlined the authority of the Federal government, through the 
        Public Health Service, to protect the safety of the blood 
        supply and blood-clotting agents sold in this country and an 
        implementation plan to carry out this policy;
            (5) the process by which antihemophilic factor is 
        commercially manufactured, marketed, and sold for use by people 
        with blood-clotting disorders, such as hemophilia, is governed 
        by Federal regulations;
            (6) in its review of the events surrounding the HIV 
        infection of thousands of people with blood-clotting disorders, 
        such as hemophilia, a 1995 study, entitled ``HIV and the Blood 
        Supply'', of the Institute of Medicine found ``a failure of 
        leadership and inadequate institutional decision-making 
        processes'' in the system responsible for ensuring blood 
        safety, concluding that ``a failure of leadership led to less 
        than effective donor screening, weak regulatory actions and 
        insufficient communication to patients about the risk of 
        AIDS'';
            (7) 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;
            (8) 26 other countries have established government 
        compensation programs to assist individuals with blood-clotting 
        disorders, such as hemophilia, who are infected with HIV;
            (9) Ricky Ray was born with hemophilia and, like his 2 
        younger brothers and thousands of others, became infected with 
        the deadly HIV through the use of contaminated blood-clotting 
        products;
            (10) Ricky Ray and his family have brought national 
        attention to the suffering of the individuals with blood-
        clotting disorders, such as hemophilia, and their families who 
        have been devastated by HIV; and
            (11) 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 title to establish a 
procedure to make compassionate payments to individuals who were 
infected with HIV after treatment, during the period beginning in 1982 
and ending in 1987, with contaminated blood products.

SEC. 102. RICKY RAY HEMOPHILIA RELIEF 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 Secretary of Health and Human Services 
under section 104.
    (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 title $900,000,000.

SEC. 103. COMPASSIONATE PAYMENT RELATING TO INDIVIDUALS WITH BLOOD-
              CLOTTING DISORDERS AND HIV.

    (a) In General.--Any individual who has an HIV infection and who is 
described in one of the following paragraphs shall receive $125,000 
from amounts available in the Fund if the conditions described in 
subsection (b) are met:
            (1) 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 July 1, 1982, and ending on 
        December 31, 1987.
            (2) The individual--
                    (A) is the lawful spouse of an individual described 
                in paragraph (1); or
                    (B) is the former lawful spouse of an individual 
                described in paragraph (1) 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 paragraph.
            (3) The individual acquired the HIV infection through 
        perinatal transmission from a parent who is an individual 
        described in paragraph (1) or (2).
    (b) Conditions.--The conditions described in this subsection are, 
with respect to an individual, as follows:
            (1) Submission of medical documentation of hiv infection.--
        The individual submits to the Secretary of Health and Human 
        Services written medical documentation that the individual has 
        an HIV infection.
            (2) Petition.--A petition for the payment is filed with the 
        Secretary by or on behalf of the individual.
            (3) Determination.--The Secretary determines, in accordance 
        with section 104(b), that the petition meets the requirements 
        of this title.

SEC. 104. DETERMINATION AND PAYMENT.

    (a) Establishment of Filing Procedures.--The Secretary of Health 
and Human Services shall establish procedures under which individuals 
may submit petitions for payment under this title. The procedures shall 
include a requirement that each petition filed under this Act include 
written medical documentation that the relevant individual described in 
section 103(a)(1) has (or had) a blood-clotting disorder, such as 
hemophilia, and was treated as described in such section.
    (b) Determination.--For each petition filed under this title, the 
Secretary shall determine whether the petition meets the requirements 
of this title.
    (c) Payment.--
            (1) In general.--The Secretary shall pay, from amounts 
        available in the Fund, each petition that the Secretary 
        determines meets the requirements of this title.
            (2) Payments in case of deceased individuals.--
                    (A) In general.--In the case of an individual 
                referred to in section 103(a) who is deceased at the 
                time that payment is made under this section on a 
                petition 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 petition by estate or survivor.--If 
                an individual eligible for payment under section 103(a) 
                dies before filing a petition under this title--
                            (i) the estate of the individual, if such 
                        an estate exists, may file a petition for 
                        payment under this title on behalf of the 
                        individual; or
                            (ii) if no such estate exists, a survivor 
                        of the individual may file a petition for 
                        payment under this title 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 Secretary may not make a 
        payment on a petition under this title 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 
        Secretary 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 Secretary determines that 
                the individual is entitled to receive payment under 
                subsection (c)(1); or
                    (B) 4 subpayments, of which--
                            (i) the first subpayment shall consist of 
                        $50,000 and shall be paid not later than 90 
                        days after the Secretary determines that the 
                        individual is entitled to receive payment under 
                        subsection (c)(1); and
                            (ii) the second, third, and fourth 
                        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 Petitions.--The Secretary shall complete the 
determination required by subsection (b) regarding a petition not later 
than 90 days after the date the petition is filed under this title.
    (e) Payment in Full Settlement of Claims Against United States.--
Payment under this title, when accepted by an individual described in 
section 103(a) 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 or 
against any officer, employee, or agent thereof acting within the scope 
of employment or agency (but not against any other private person or 
entity) that relate to an HIV infection arising from treatment, at any 
time during the period beginning on July 1, 1982, 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 Secretary in carrying out this title 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 Secretary.--The duties of the 
Secretary 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;
            (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, and 
such benefits shall not be secondary to, conditioned upon reimbursement 
from, or subject to any reduction because of receipt of, any such 
payment; and
            (3) shall not be treated as a third party payment or 
        payment in relation to a legal liability with respect to such 
        benefits and shall not be subject (whether by subrogation or 
        otherwise) to recovery, recoupment, reimbursement, or 
        collection with respect to such benefits (including the Federal 
        or State governments or any entity that provides such benefits 
        under a contract).
    (i) Regulatory Authority.--The Secretary may issue regulations 
necessary to carry out this title.
    (j) Time of Issuance of Procedures.--The Secretary shall, through 
the promulgation of appropriate regulations, guidelines, or otherwise, 
first establish the procedures to carry out this title not later than 
90 days after the date of the enactment of this Act.
    (k) Judicial Review.--An individual whose petition for payment 
under this title 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. 105. LIMITATION ON TRANSFER OF RIGHTS AND NUMBER OF PETITIONS.

    (a) Rights Not Assignable or Transferable.--Any right under this 
title shall not be assignable or transferable.
    (b) 1 Petition With Respect to Each Victim.--With respect to each 
individual described in paragraph (1), (2), or (3) of section 103(a), 
the Secretary may not make payment with respect to more than 1 petition 
filed to receive compensation under this title for the harm suffered by 
the individual.

SEC. 106. TIME LIMITATION.

    The Secretary may not make any payment with respect to any petition 
filed under this title unless the petition is filed within 3 years 
after the date of the enactment of this Act.

SEC. 107. CERTAIN CLAIMS NOT AFFECTED BY PAYMENT.

    A payment made under section 104(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 title shall not affect any claim against 
an insurance carrier with respect to insurance or against any person 
with respect to worker's compensation.

SEC. 108. LIMITATION ON AGENT AND ATTORNEY FEES.

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

SEC. 109. DEFINITIONS.

    In this title:
            (1) AIDS.--The term ``AIDS'' means acquired immune 
        deficiency syndrome.
            (2) Fund.--The term ``Fund'' means the Ricky Ray Hemophilia 
        Relief Fund.
            (3) HIV.--The term ``HIV'' means human immunodeficiency 
        virus.
            (4) Secretary.--Unless otherwise provided, the term 
        ``Secretary'' means Secretary of Health and Human Services.

     TITLE II--TREATMENT OF CERTAIN PRIVATE SETTLEMENT PAYMENTS IN 
  HEMOPHILIA-CLOTTING-FACTOR SUIT UNDER THE MEDICAID AND SSI PROGRAMS

SEC. 201. TREATMENT OF CERTAIN PRIVATE SETTLEMENT PAYMENTS IN 
              HEMOPHILIA-CLOTTING-FACTOR SUIT UNDER THE MEDICAID AND 
              SSI PROGRAMS.

    (a) In General.--Notwithstanding any other provision of law, a 
settlement payment shall not be considered income or resources in 
determining a class member's eligibility for, or the amount of--
            (1) medical assistance under title XIX of the Social 
        Security Act, or
            (2) supplemental security income benefits under title XVI 
        of such Act.
    (b) Definitions.--For purposes of this section:
            (1) Class member.--The term ``class member'' means a member 
        of the Settlement Class in the settlement in In Re Factor VIII 
        or IX Concentrate Blood Products Litigation (United States 
        District Court, Northern District of Illinois, Eastern 
        Division; Civil Action No. 96-C-5024).
            (2) Settlement payment.--The term ``settlement payment'' 
        means a payment to a class member under the settlement 
        described in paragraph (1).
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