[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3549 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 3549
To provide indemnification and liability protection to, and facilitate
the procurement of insurance for, contractors responding to the World
Trade Center attacks.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 19, 2001
Mr. Sweeney introduced the following bill; which was referred to the
Committee on the Judiciary
_______________________________________________________________________
A BILL
To provide indemnification and liability protection to, and facilitate
the procurement of insurance for, contractors responding to the World
Trade Center attacks.
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 ``World Trade Center Worker and
Contractor Protection Act''.
SEC. 2. INDEMNIFICATION, LIABILITY LIMITATION, AND FACILITATION OF
INSURANCE PROCUREMENT FOR CONTRACTORS FOR THE RESPONSE TO
THE WORLD TRADE CENTER ATTACKS.
(a) In General.--Regardless of any other provisions of law or any
contract, the United States Government shall, subject to the
limitations contained in this section, indemnify Contractors as defined
herein against claims as defined in this section.
(b) Coordination With Insurance.--Indemnification under this
section shall apply only to the extent that a claim is not otherwise
covered and compensable by insurance procured for the risks involved in
the response to the World Trade Center attacks. However, all or part of
the indemnification under this section may, pursuant to the terms of
insurance procured after the effective date of this Act, be payable
before such insurance is applicable.
(c) Limitation in Case of Willful Misconduct or Lack of Good
Faith.--When a claim arises from willful misconduct or lack of good
faith, intended to cause injury to persons or damage to property, on
the part of any of the Contractors' principal officials, the Contractor
shall not be indemnified.
(d) Control of Claims Management.--The Contractor shall, to the
extent that such claim is reasonably expected to involve
indemnification under this section--
(1) promptly notify the Federal Emergency Management Agency
of any claim against the Contractor that may reasonably be
expected to involve indemnification under this section;
(2) immediately furnish to the United States Government
copies of all pertinent papers Contractor receives;
(3) furnish evidence or proof of any claim covered by this
section in the manner and form the United States Government
requires; and
(4) comply with the United States Government's directions
and execute any authorizations required in connection with
settlement or defense of claims or actions.
(e) Procedure.--The United States Government may direct, control,
or assist in settling or defending any claim to the extent that such
claim involves indemnification under this section.
(f) Payment Authority.--This section constitutes budget authority
in advance of appropriations Acts and represents the obligation of the
United States Government to provide for the payment of amounts for
indemnification under this section.
(g) Limitation on Liability and Indemnity.--Notwithstanding any
other provision of law or contract, the total aggregate liability of
Contractors for claims shall not exceed $350,000,000. Insurance
coverage shall not increase this limit of liability and shall reduce
the indemnity commitment provided by this section. Insurance coverage
procured for Contractors after the effective date of this Act may, by
its terms, be payable for claims at liability coverage levels below the
total aggregate liability limit. This limit of liability shall not
preclude a Contractor from being paid or reimbursed for work performed,
services provided, or materials and equipment utilized or consumed.
(h) Litigation Management.--Any claims for damages against a
Contractor that may result in Federal indemnification as provided in
this section shall be brought under section 408(b) of the Air
Transportation Safety and System Stabilization Act (49 U.S.C. 40101
note), as amended by section 201(b)(2) of the Aviation and
Transportation Security Act (Public Law 107-71), and shall be subject
to the following limits:
(1) No punitive damages may be awarded except in case of
willful misconduct, nor shall any party be liable for interest
prior to the judgment. No punitive damages may be awarded
against the United States Government.
(2) Each Contractor against whom a claim is brought shall
be liable only for the amount of damages allocated to such
Contractor in direct proportion to the percentage of
responsibility of the Contractor for causing the harm to the
plaintiff.
(i) Exclusion.--Nothing in this section shall in any way limit the
liability of any person who--
(1) attempts to commit, knowingly participates in, aids and
abets, or commits any act of terrorism, or any criminal act
related to or resulting from such act of terrorism; or
(2) participates in a conspiracy to commit any such act of
terrorism or any such criminal act.
(j) Right of Subrogation.--The United States shall have the right
of subrogation with respect to any claim paid by the United States that
results in federal indemnification as provided in this section. Such
right of subrogation shall not be applied against a Contractor.
(k) Definitions.--In this section:
(1) The term ``response to the World Trade Center attacks''
means all acts or failures to act by Contractors or volunteers
in connection with their work at the World Trade Center site on
the rescue and evacuation, recovery of bodies, clean up,
environmental remediation, removal of debris, transportation of
debris, control of pollutants, securing of public and private
property, and protection of the public health, safety and
welfare; provided that such term shall not include efforts to
build or rebuild new buildings or other activities on the site
of the World Trade Center attacks occurring subsequent to the
foregoing acts or failures to act.
(2) The term ``Contractor'' means any person or entity
involved in providing work, labor, equipment, materials, or
services in connection with the response to the World Trade
Center attacks, including--
(A) contractors, subcontractors at any tier,
construction managers, engineers, design professionals,
and their parents, affiliates, officers, directors,
partners, and employees; and
(B) the persons or entities, including States or
political subdivisions thereof, contracting for such
work, labor, equipment, materials or services.
(3) The term ``Contractor's principal officials'' means
directors, officers, managers, superintendents, or other
representatives supervising or directing--
(A) all or substantially all of the Contractor's
business;
(B) all or substantially all of the Contractor's
operations at any one plant or separate location in
which work in response to the World Trade Center attack
is being performed; or
(C) a separate and complete major industrial
operation in which work in response to the World Trade
Center attack is being performed.
(4) The term ``claims'' or ``claim'' shall mean claims,
actions, losses, settlements or damages (including reasonable
expenses of litigation and defense thereof) arising out of or
resulting from the response to the World Trade Center attacks,
whether arising prior to or subsequent to the enactment of this
legislation, for death, personal injury, or loss of, damage to,
or loss of use of property.
(l) Severability.--If any provision of this section, or the
application hereof to any person or circumstances, is held invalid, the
remainder of this section, and the application of such provision to
other persons or circumstances, shall not be affected thereby.
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