[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1624 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1624

  To establish the Office of World Trade Center Attack Claims to pay 
 claims for injury to businesses and property suffered as a result of 
the attack on the World Trade Center in New York City that occurred on 
              September 11, 2001, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 1, 2001

  Mrs. Clinton (for herself and Mr. Schumer) introduced the following 
bill; which was read twice and referred to the Committee on Environment 
                            and Public Works

_______________________________________________________________________

                                 A BILL


 
  To establish the Office of World Trade Center Attack Claims to pay 
 claims for injury to businesses and property suffered as a result of 
the attack on the World Trade Center in New York City that occurred on 
              September 11, 2001, 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.

    This Act may be cited as the ``World Trade Center Attack Claims 
Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Affected Area.--The term ``affected area'' means the 
        area in lower Manhattan, New York City, that is comprised of--
                    (A) the area located south of Chambers Street and 
                west of Broadway; and
                    (B) the area located south of Worth Street and east 
                of Broadway.
            (2) Attack.--The term ``attack'' means the attack on the 
        World Trade Center in New York City that occurred on September 
        11, 2001.
            (3) Claim.--The term ``claim'' means a claim by an injured 
        person under this Act for payment for injury suffered by the 
        injured person as a result of the attack.
            (4) Claimant.--The term ``claimant'' means an injured 
        person that submits a claim under section 4(b).
            (5) Director.--The term ``Director'' means--
                    (A) the Director of the Federal Emergency 
                Management Agency; or
                    (B) if an Independent Claims Manager is appointed 
                under section 3(d)(4), the Independent Claims Manager.
            (6) Injured person.--
                    (A) In general.--The term ``injured person'' means 
                an individual, corporation, partnership, company, 
                association, cooperative, joint venture, limited 
                liability company, estate, trust, or nonprofit 
                organization that--
                            (i) suffered injury as a result of the 
                        attack; and
                            (ii) resides or maintains a place of 
                        business in the affected area.
                    (B) Exclusions.--The term ``injured person'' does 
                not include--
                            (i) a lender that holds a mortgage on or 
                        security interest in real or personal property 
                        affected by the attack; or
                            (ii) a person that holds a lien on real or 
                        personal property affected by the attack.
            (7) Office.--The term ``Office'' means the Office of World 
        Trade Center Attack Claims established by section 3.

SEC. 3. OFFICE OF WORLD TRADE CENTER ATTACK CLAIMS.

    (a) In General.--There is established within the Federal Emergency 
Management Agency an office to be known as the ``Office of World Trade 
Center Attack Claims''.
    (b) Purpose.--The Office shall receive, process, and pay claims in 
accordance with section 4.
    (c) Funding.--The Office--
            (1) shall be funded from funds made available under this 
        Act; and
            (2) may reimburse any other Federal agency for provision of 
        assistance in the receipt and processing of claims.
    (d) Personnel.--
            (1) In general.--The Office may appoint and fix the 
        compensation of such temporary personnel as are necessary to 
        carry out the duties of the Office, without regard to the 
        provisions of title 5, United States Code, governing 
        appointments in the competitive service.
            (2) Personnel from other agencies.--On the request of the 
        Director, the head of any other Federal agency may detail, on a 
        reimbursable basis, any of the personnel of the agency to the 
        Federal Emergency Management Agency to assist the Office in 
        carrying out the duties of the Office under this Act.
            (3) Effect on other fema duties.--The establishment of the 
        Office shall not diminish the authority of, or funding 
        available to, the Director to carry out the responsibilities of 
        the Federal Emergency Management Agency under the Robert T. 
        Stafford Disaster Relief and Emergency Assistance Act (42 
        U.S.C. 5121 et seq.), including the timely provision of 
        disaster assistance to any area with respect to which a major 
        disaster or emergency is declared by the President to exist 
        during the period in which the Director carries out this Act.
            (4) Appointment of independent claims manager.--The 
        Director may appoint an Independent Claims Manager to head the 
        Office and to assume the duties of the Director under this Act.

SEC. 4. COMPENSATION FOR VICTIMS OF THE ATTACK.

    (a) In General.--Each injured person shall be entitled to receive 
from the United States compensation for injury suffered by the injured 
person as a result of the attack, as determined by the Director in 
accordance with subsection (d).
    (b) Submission of Claims.--
            (1) In general.--Not later than 2 years after the date on 
        which interim final regulations are promulgated under 
        subsection (l), an injured person may submit to the Director a 
        written claim for payment of injury suffered by the injured 
        person as a result of the attack in accordance with such 
        requirements as the Director determines to be appropriate.
            (2) Statement of use of payment.--
                    (A) In general.--Subject to subparagraph (B), an 
                injured person shall include in a written claim 
                submitted under paragraph (1) a statement of the 
                purposes for which any payment on the claim will be 
                used.
                    (B) Authorized uses.--An injured person may use a 
                payment on a claim only to continue, repair, replace, 
                start, establish, or locate, in New York City, a 
                business or residence that was located, before 
                September 11, 2001, in the affected area.
    (c) Investigation of Claims.--The Director shall investigate, 
adjust, grant, deny, or settle any claim submitted under subsection 
(b).
    (d) Amount of Payment.--
            (1) In general.--Any payment on a claim by an injured 
        person--
                    (A) shall be limited to the amount necessary to 
                compensate the injured person for injury described in 
                paragraph (2) suffered as a result of the attack during 
                the period beginning on September 11, 2001, and ending 
                on March 11, 2003;
                    (B) shall be subject to subsection (e)(1)(C);
                    (C) shall not include--
                            (i) interest on the amount of the payment 
                        before the date of settlement or payment of a 
                        claim; or
                            (ii) punitive damages or any other form of 
                        noncompensatory damages; and
                    (D) shall not exceed $500,000, except in the case 
                of a claim for which the Director determines that a 
                greater amount is appropriate.
            (2) Types of injury.--
                    In general.--Under paragraph (1), subject to 
                subparagraph (B), an injured person may receive payment 
                for--
                            (i) an uninsured or underinsured property 
                        loss;
                            (ii) damage to or destruction of physical 
                        infrastructure;
                            (iii) damage to or destruction of tangible 
                        assets or inventory;
                            (iv) a business interruption loss;
                            (v) overhead costs;
                            (vi) employee wages for work not performed;
                            (vii) an insurance deductible;
                            (viii) a temporary living or relocation 
                        expense; and
                            (ix) debris removal and other cleanup 
                        costs; and
                            (x) any other type of injury that the 
                        Director determines to be appropriate.
                    (B) Limitation on certain types of business loss.--
                An injured person may receive payment for a type of 
                injury specified in clause (iv), (v), or (vi) only if 
                the injured person has experienced, as a result of the 
                attack, with respect to a business facility of the 
                person--
                            (i) disruption in power;
                            (ii) disruption in telecommunications 
                        capacity;
                            (iii) damage to or destruction of physical 
                        infrastructure; or
                            (iv) disruption in physical access.
            (3) Burden of proof.--
                    (A) In general.--Subject to subparagraph (B), a 
                claimant shall have the burden of demonstrating injury 
                suffered by the claimant.
                    (B) Absence of documents.--If documentary evidence 
                substantiating injury is not reasonably available, the 
                Director may pay a claim based on an affidavit or other 
                documentation executed by the claimant.
            (4) Applicability of state law.--Except as otherwise 
        provided in this section, the law of the State of New York 
        shall apply to the determination of injury under this 
        subsection.
    (e) Payment of Claims.--
            (1) Determination and payment of amount.--
                    (A) In general.--Not later than 180 days after the 
                date on which a claim is submitted under subsection 
                (b), the Director shall--
                            (i) determine the amount, if any, to be 
                        paid for the claim; and
                            (ii) pay the amount.
                    (B) Parameters of determination.--In determining 
                and paying a claim, the Director shall determine only--
                            (i) whether the claimant is an injured 
                        person;
                            (ii) whether the injuries that are the 
                        subject of the claim resulted from the attack;
                            (iii) the amount, if any, to be paid under 
                        this section; and
                            (iv) the person or persons entitled to 
                        receive the amount.
                    (C) Insurance and other benefits.--
                            (i) In general.--Subject to clause (ii), to 
                        prevent recovery by a claimant in excess of the 
                        equivalent of actual compensatory damages in 
                        accordance with subsection (d), the Director, 
                        in determining the amount of, and paying, a 
                        claim, shall reduce the amount to be paid for 
                        the claim by an amount that is equal to the sum 
                        of the payments or settlements of any kind that 
                        were paid, or will be paid, with respect to the 
                        claim, including--
                                    (I) payments on insurance policies;
                                    (II) benefits under the public 
                                assistance program, individual 
                                assistance program, or other program of 
                                the Federal Emergency Management Agency 
                                or under a program of any other 
                                Federal, State, or local agency; and
                                    (III) financial assistance provided 
                                by a charitable or other nonprofit, 
                                nongovernmental organization.
                            (ii) Government loans.--Clause (i) shall 
                        not apply to the receipt by a claimant of any 
                        Federal, State, or local government loan that 
                        is required to be repaid by the claimant.
            (2) Advance and partial payments.--
                    (A) In general.--At the request of a claimant, the 
                Director may make 1 or more advance or partial payments 
                before the final settlement of a claim, including final 
                settlement on any portion of a claim that is determined 
                to be severable.
                    (B) Judicial decision.--If a claimant receives a 
                partial payment on a claim, but the Director denies any 
                further payment on the claim, the claimant may--
                            (i) seek judicial review under subsection 
                        (j); and
                            (ii) retain any partial payment that the 
                        claimant received, unless the Director 
                        determines that the claimant--
                                    (I) was not eligible to receive the 
                                partial payment; or
                                    (II) fraudulently obtained the 
                                partial payment.
    (f) Acceptance of Payments on Claims.--The acceptance by a claimant 
of a payment on a claim under this section, except an advance or 
partial payment under subsection (e)(2), shall--
            (1) be final and conclusive on the claimant with respect to 
        all claims arising out of or relating to the same subject 
        matter;
            (2) subject to subsection (h), be final and conclusive on 
        the United States; and
            (3) include a certification by the claimant, made under 
        penalty of perjury and subject to section 1001 of title 18, 
        United States Code, that the claim of the claimant is true and 
        correct.
    (g) Use of Payments on Claims.--An injured person may use a payment 
on a claim only for the purposes stated in the statement submitted 
under subsection (b)(2).
    (h) Recovery of Funds Improperly Paid or Misused.--The United 
States may recover any portion of a payment on a claim that--
            (1) was improperly paid to the claimant as a result of--
                    (A) fraud or misrepresentation on the part of the 
                claimant or a representative of the claimant;
                    (B) a material mistake on the part of the United 
                States;
                    (C) the payment of benefits described in subsection 
                (e)(1)(C) that were not taken into account in 
                determining the amount of the payment; or
                    (D) the failure of the claimant to cooperate in an 
                audit; or
            (2) is used by the claimant in violation of subsection (g).
    (i) Arbitration.--
            (1) In general.--Not later than 45 days after the date of 
        enactment of this Act, the Director shall establish by 
        regulation procedures under which a dispute concerning a claim 
        may be settled by arbitration.
            (2) Arbitration as remedy.--On establishment of arbitration 
        procedures under paragraph (1), an injured person that submits 
        a claim that is disputed may elect to settle the claim through 
        arbitration.
            (3) Binding effect.--An election by an injured person to 
        settle a claim through arbitration under this subsection 
        shall--
                    (A) be binding; and
                    (B) preclude any exercise by the injured person of 
                the right to judicial review of a claim under 
                subsection (j).
    (j) Judicial Review.--
            (1) In general.--A claimant aggrieved by a final decision 
        of the Director under this section may bring, not later than 60 
        days after the date on which the decision is issued, a civil 
        action in the United States District Court for the Southern 
        District of New York to modify or set aside the decision, in 
        whole or in part.
            (2) Record.--The court shall hear a civil action under 
        paragraph (1) on the record made before the Director.
            (3) Standard of review.--The court shall uphold the 
        decision of the Director if the decision is supported by 
        substantial evidence on the record as a whole.
    (k) Attorney's and Agent's Fees.--
            (1) In general.--No attorney or agent, acting alone or in 
        combination with any other attorney or agent, shall charge or 
        accept, for services rendered in connection with a claim, a fee 
        in excess of 10 percent of the amount of any payment on the 
        claim.
            (2) Penalty for violation.--An attorney or agent who 
        violates paragraph (1) shall be subject to a civil penalty of 
        not more than $10,000.
    (l) Regulations.--Notwithstanding any other provision of law, not 
later than 45 days after the date of enactment of this Act, the 
Director shall promulgate and publish in the Federal Register interim 
final regulations for the processing and payment of claims.
    (m) Public Information.--
            (1) In general.--At the time of publication of interim 
        final regulations under subsection (l), the Director shall 
        publish, in newspapers of general circulation in New York City, 
        a clear, concise, and easily understandable explanation, in 
        English and Spanish, of--
                    (A) the rights conferred under this section; and
                    (B) the procedural and other requirements of the 
                regulations promulgated under subsection (l).
            (2) Dissemination through other media.--The Director shall 
        disseminate the explanation published under paragraph (1) 
        through brochures, pamphlets, radio, television, and such other 
        media as the Director determines to be likely to reach 
        prospective claimants.
    (n) Coordination.--In carrying out this section, the Director shall 
coordinate with the Administrator of the Small Business Administration, 
other Federal agencies, and State and local agencies, as the Director 
determines to be necessary--
            (1) to ensure the efficient administration of the claims 
        process; and
            (2) to provide for local concerns.
    (o) Applicability of Debt Collection Requirements.--Section 3716 of 
title 31, United States Code, shall not apply to any payment on a 
claim.

SEC. 5. RELATIONSHIP TO FEDERAL ENTITLEMENT PROGRAMS.

    Nothing in this Act affects any right of an injured person that 
submits a claim to submit a request for benefits under any Federal 
entitlement program.

SEC. 6. REPORTS AND AUDITS.

    (a) Reports.--Not later than 1 year after the date of promulgation 
of interim final regulations under section 4(l) and annually 
thereafter, the Director shall submit to Congress a report that 
describes the claims submitted under section 4(b) during the year 
preceding the date of submission of the report, including, with respect 
to each claim--
            (1) the amount claimed;
            (2) a brief description of the nature of the claim; and
            (3) the status or disposition of the claim, including the 
        amount of any payment on the claim.
    (b) Audits.--The Comptroller General shall--
            (1) conduct an annual audit of the payment of all claims 
        submitted under section 4(b); and
            (2) not later than 1 year after the date of enactment of 
        this Act and annually thereafter, report to Congress on the 
        results of the audit.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There is authorized to be appropriated to carry 
out this Act $2,000,000,000, to remain available until expended.
    (b) FEMA Funds.--None of the funds made available to the Federal 
Emergency Management Agency for the administration of disaster relief 
shall be used to carry out this Act.

SEC. 8. TERMINATION OF AUTHORITY.

    The authority provided by this Act terminates effective 42 months 
after the date of enactment of this Act.
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