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






                                                       Calendar No. 269
107th CONGRESS
  1st Session
                                S. 1624

                          [Report No. 107-116]

  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

                            December 7, 2001

              Reported by Mr. Jeffords, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 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,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``World Trade Center Attack 
Claims Act''.</DELETED>

<DELETED>SEC. 2. DEFINITIONS.</DELETED>

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

<DELETED>SEC. 3. OFFICE OF WORLD TRADE CENTER ATTACK CLAIMS.</DELETED>

<DELETED>    (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''.</DELETED>
<DELETED>    (b) Purpose.--The Office shall receive, process, and pay 
claims in accordance with section 4.</DELETED>
<DELETED>    (c) Funding.--The Office--</DELETED>
        <DELETED>    (1) shall be funded from funds made available 
        under this Act; and</DELETED>
        <DELETED>    (2) may reimburse any other Federal agency for 
        provision of assistance in the receipt and processing of 
        claims.</DELETED>
<DELETED>    (d) Personnel.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>

<DELETED>SEC. 4. COMPENSATION FOR VICTIMS OF THE ATTACK.</DELETED>

<DELETED>    (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).</DELETED>
<DELETED>    (b) Submission of Claims.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Statement of use of payment.--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>
<DELETED>    (c) Investigation of Claims.--The Director shall 
investigate, adjust, grant, deny, or settle any claim submitted under 
subsection (b).</DELETED>
<DELETED>    (d) Amount of Payment.--</DELETED>
        <DELETED>    (1) In general.--Any payment on a claim by an 
        injured person--</DELETED>
                <DELETED>    (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;</DELETED>
                <DELETED>    (B) shall be subject to subsection 
                (e)(1)(C);</DELETED>
                <DELETED>    (C) shall not include--</DELETED>
                        <DELETED>    (i) interest on the amount of the 
                        payment before the date of settlement or 
                        payment of a claim; or</DELETED>
                        <DELETED>    (ii) punitive damages or any other 
                        form of noncompensatory damages; and</DELETED>
                <DELETED>    (D) shall not exceed $500,000, except in 
                the case of a claim for which the Director determines 
                that a greater amount is appropriate.</DELETED>
        <DELETED>    (2) Types of injury.--</DELETED>
                <DELETED>    In general.--Under paragraph (1), subject 
                to subparagraph (B), an injured person may receive 
                payment for--</DELETED>
                        <DELETED>    (i) an uninsured or underinsured 
                        property loss;</DELETED>
                        <DELETED>    (ii) damage to or destruction of 
                        physical infrastructure;</DELETED>
                        <DELETED>    (iii) damage to or destruction of 
                        tangible assets or inventory;</DELETED>
                        <DELETED>    (iv) a business interruption 
                        loss;</DELETED>
                        <DELETED>    (v) overhead costs;</DELETED>
                        <DELETED>    (vi) employee wages for work not 
                        performed;</DELETED>
                        <DELETED>    (vii) an insurance 
                        deductible;</DELETED>
                        <DELETED>    (viii) a temporary living or 
                        relocation expense; and</DELETED>
                        <DELETED>    (ix) debris removal and other 
                        cleanup costs; and</DELETED>
                        <DELETED>    (x) any other type of injury that 
                        the Director determines to be 
                        appropriate.</DELETED>
                <DELETED>    (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--</DELETED>
                        <DELETED>    (i) disruption in power;</DELETED>
                        <DELETED>    (ii) disruption in 
                        telecommunications capacity;</DELETED>
                        <DELETED>    (iii) damage to or destruction of 
                        physical infrastructure; or</DELETED>
                        <DELETED>    (iv) disruption in physical 
                        access.</DELETED>
        <DELETED>    (3) Burden of proof.--</DELETED>
                <DELETED>    (A) In general.--Subject to subparagraph 
                (B), a claimant shall have the burden of demonstrating 
                injury suffered by the claimant.</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (e) Payment of Claims.--</DELETED>
        <DELETED>    (1) Determination and payment of amount.--
        </DELETED>
                <DELETED>    (A) In general.--Not later than 180 days 
                after the date on which a claim is submitted under 
                subsection (b), the Director shall--</DELETED>
                        <DELETED>    (i) determine the amount, if any, 
                        to be paid for the claim; and</DELETED>
                        <DELETED>    (ii) pay the amount.</DELETED>
                <DELETED>    (B) Parameters of determination.--In 
                determining and paying a claim, the Director shall 
                determine only--</DELETED>
                        <DELETED>    (i) whether the claimant is an 
                        injured person;</DELETED>
                        <DELETED>    (ii) whether the injuries that are 
                        the subject of the claim resulted from the 
                        attack;</DELETED>
                        <DELETED>    (iii) the amount, if any, to be 
                        paid under this section; and</DELETED>
                        <DELETED>    (iv) the person or persons 
                        entitled to receive the amount.</DELETED>
                <DELETED>    (C) Insurance and other benefits.--
                </DELETED>
                        <DELETED>    (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--</DELETED>
                                <DELETED>    (I) payments on insurance 
                                policies;</DELETED>
                                <DELETED>    (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</DELETED>
                                <DELETED>    (III) financial assistance 
                                provided by a charitable or other 
                                nonprofit, nongovernmental 
                                organization.</DELETED>
                        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Advance and partial payments.--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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--</DELETED>
                        <DELETED>    (i) seek judicial review under 
                        subsection (j); and</DELETED>
                        <DELETED>    (ii) retain any partial payment 
                        that the claimant received, unless the Director 
                        determines that the claimant--</DELETED>
                                <DELETED>    (I) was not eligible to 
                                receive the partial payment; 
                                or</DELETED>
                                <DELETED>    (II) fraudulently obtained 
                                the partial payment.</DELETED>
<DELETED>    (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--</DELETED>
        <DELETED>    (1) be final and conclusive on the claimant with 
        respect to all claims arising out of or relating to the same 
        subject matter;</DELETED>
        <DELETED>    (2) subject to subsection (h), be final and 
        conclusive on the United States; and</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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).</DELETED>
<DELETED>    (h) Recovery of Funds Improperly Paid or Misused.--The 
United States may recover any portion of a payment on a claim that--
</DELETED>
        <DELETED>    (1) was improperly paid to the claimant as a 
        result of--</DELETED>
                <DELETED>    (A) fraud or misrepresentation on the part 
                of the claimant or a representative of the 
                claimant;</DELETED>
                <DELETED>    (B) a material mistake on the part of the 
                United States;</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (D) the failure of the claimant to 
                cooperate in an audit; or</DELETED>
        <DELETED>    (2) is used by the claimant in violation of 
        subsection (g).</DELETED>
<DELETED>    (i) Arbitration.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (3) Binding effect.--An election by an injured 
        person to settle a claim through arbitration under this 
        subsection shall--</DELETED>
                <DELETED>    (A) be binding; and</DELETED>
                <DELETED>    (B) preclude any exercise by the injured 
                person of the right to judicial review of a claim under 
                subsection (j).</DELETED>
<DELETED>    (j) Judicial Review.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Record.--The court shall hear a civil action 
        under paragraph (1) on the record made before the 
        Director.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (k) Attorney's and Agent's Fees.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (m) Public Information.--</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) the rights conferred under this 
                section; and</DELETED>
                <DELETED>    (B) the procedural and other requirements 
                of the regulations promulgated under subsection 
                (l).</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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--</DELETED>
        <DELETED>    (1) to ensure the efficient administration of the 
        claims process; and</DELETED>
        <DELETED>    (2) to provide for local concerns.</DELETED>
<DELETED>    (o) Applicability of Debt Collection Requirements.--
Section 3716 of title 31, United States Code, shall not apply to any 
payment on a claim.</DELETED>

<DELETED>SEC. 5. RELATIONSHIP TO FEDERAL ENTITLEMENT 
              PROGRAMS.</DELETED>

<DELETED>    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.</DELETED>

<DELETED>SEC. 6. REPORTS AND AUDITS.</DELETED>

<DELETED>    (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--</DELETED>
        <DELETED>    (1) the amount claimed;</DELETED>
        <DELETED>    (2) a brief description of the nature of the 
        claim; and</DELETED>
        <DELETED>    (3) the status or disposition of the claim, 
        including the amount of any payment on the claim.</DELETED>
<DELETED>    (b) Audits.--The Comptroller General shall--</DELETED>
        <DELETED>    (1) conduct an annual audit of the payment of all 
        claims submitted under section 4(b); and</DELETED>
        <DELETED>    (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.</DELETED>

<DELETED>SEC. 7. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    (a) In General.--There is authorized to be appropriated to 
carry out this Act $2,000,000,000, to remain available until 
expended.</DELETED>
<DELETED>    (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.</DELETED>

<DELETED>SEC. 8. TERMINATION OF AUTHORITY.</DELETED>

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

SECTION 1. SHORT TITLE.

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

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) on September 11, 2001, an unprecedented terrorist 
        attack was perpetrated against the United States on American 
        soil;
            (2) 1 of the targets of that terrorist attack was the World 
        Trade Center in New York City;
            (3) the attack on the World Trade Center resulted in the 
        loss of thousands of lives, and the damage or destruction of a 
        16-acre area in lower Manhattan, including thousands of homes 
        and businesses;
            (4) more than 1,000,000 tons of rubble must be removed from 
        the attack site;
            (5) nearly 25,000,000 square feet of office space, 
        equivalent to 20 percent of all office space in downtown New 
        York, was damaged or destroyed by the attack;
            (6) approximately 850 businesses and over 125,000 workers 
        were physically displaced as a result of the attack;
            (7) more than an additional 9,000 businesses employing over 
        145,000 people have been affected as a result of restrictions 
        on access resulting from the attack;
            (8) many of those businesses are on the verge of bankruptcy 
        because the businesses remain unable to gain access to their 
        property or are temporarily unable to receive foot or vehicular 
        traffic;
            (9) it is estimated that the attack will cost New York City 
        and businesses in the city over $105,000,000,000 in financial 
        losses over the next 2 years; and
            (10) certain victims of the attack are in need of 
        compensation for certain business and residential losses 
        resulting directly from the attack.
    (b) Purposes.--The purposes of this Act are--
            (1) to compensate certain victims of the terrorist attack 
        on the World Trade Center in New York City for certain business 
        and residential losses resulting directly from the attack;
            (2) to provide for the expeditious consideration and 
        payment of claims for those losses; and
            (3) to assist victims of the attack to continue, repair, 
        replace, start, establish, or locate a business or residence in 
        New York City that was located in the affected area before 
        September 11, 2001.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Affected area.--The term ``affected area'' means the 
        area in lower Manhattan, New York City, that is comprised of 
        the area located on or south of Canal Street, on or south of 
        East Broadway (east of its intersection with Canal Street), or 
        on or south of Grand Street (east of its intersection with East 
        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 5(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 4(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 4.

SEC. 4. 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 5.
    (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. 5. COMPENSATION FOR VICTIMS OF THE ATTACK.

    (a) In General.--Each injured person may 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.--Not later than 2 years after the date on 
which interim final regulations are promulgated under subsection (i), 
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.
    (c) Investigation of Claims.--The Director shall investigate, 
adjust, grant, deny, settle, or compromise 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)(D);
                    (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.--
                    (A) Residential loss.--Under paragraph (1), an 
                injured person may receive payment for a residential 
                loss consisting of 1 or more of the following:
                            (i) An uninsured or underinsured property 
                        loss.
                            (ii) Damage to or destruction of physical 
                        infrastructure.
                            (iii) An insurance deductible.
                            (iv) A temporary living or relocation 
                        expense.
                            (v) Debris removal and other cleanup costs.
                            (vi) Any other type of related injury that 
                        the Director determines to be appropriate.
                    (B) Business loss.--
                            (i) In general.--Under paragraph (1), an 
                        injured person may receive payment for a 
                        business loss consisting of 1 or more of the 
                        following:
                                    (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 relocation 
                                expense.
                                    (IX) Debris removal and other 
                                cleanup costs.
                                    (X) Any other type of injury that 
                                the Director determines to be 
                                appropriate.
                            (ii) Limitation on business loss.--An 
                        injured person may receive payment for a 
                        business loss under clause (i) only if the 
                        injured person has experienced, as a result of 
                        the attack, with respect to a business facility 
                        of the injured person--
                                    (I) disruption in power;
                                    (II) disruption in 
                                telecommunications capacity;
                                    (III) damage to or destruction of 
                                physical infrastructure; or
                                    (IV) disruption in physical access 
                                by employees or customers to the 
                                business facility of the injured 
                                person.
            (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.
    (e) Payment of Claims.--
            (1) Determination and payment of amount.--
                    (A) In general.--To the maximum extent practicable, 
                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) Priority.--The Director may establish 
                priorities for processing and paying claims based on--
                            (i) an assessment of the needs of the 
                        claimants; and
                            (ii) any other criteria that the Director 
                        determines to be appropriate.
                    (C) 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.
                    (D) 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; 
                                and
                                    (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.
                            (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 or partial payments.--At the request of a 
        claimant, the Director may make 1 or more advance or partial 
        payments before the final settlement of a claim.
    (f) Recovery of Funds Improperly Paid or Misused.--The United 
States may recover any portion of a payment on a claim that was 
improperly paid to the claimant as a result of--
            (1) fraud or misrepresentation on the part of the claimant 
        or a representative of the claimant;
            (2) a material mistake on the part of the United States;
            (3) the payment of benefits described in subsection 
        (e)(1)(D) that were not taken into account in determining the 
        amount of the payment; or
            (4) the failure of the claimant to cooperate in an audit.
    (g) Appeals of Decisions.--
            (1) Right of appeal.--A claimant may appeal a decision 
        concerning payment of a claim by filing, not later than 60 days 
        after the date on which the claimant is notified that the claim 
        of the claimant will or will not be paid, a notice of appeal--
                    (A) in the case of a decision on a claim relating 
                to a business loss, with the Administrator of the Small 
                Business Administration; and
                    (B) in the case of a decision on a claim relating 
                to a residential loss, with the Director.
            (2) Period for decision.--A decision concerning an appeal 
        under paragraph (1) shall be rendered not later than 90 days 
        after the date on which the notice of appeal is received.
    (h) 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.
    (i) Regulations.--Notwithstanding any other provision of law, not 
later than 45 days after the date of enactment of this Act--
            (1) the Director shall promulgate and publish in the 
        Federal Register interim final regulations for the processing 
        and payment of claims; and
            (2) the Director and the Administrator of the Small 
        Business Administration shall jointly promulgate and publish in 
        the Federal Register procedures under which a dispute 
        concerning payment of a claim may be settled through an appeals 
        process described in subsection (g).
    (j) Public Information.--At the time of publication of interim 
final regulations under subsection (i), the Director shall disseminate, 
through brochures, pamphlets, radio, television, the print news media, 
and such other media as the Director determines to be likely to reach 
prospective claimants, a clear, concise, and easily understandable 
explanation, in English, Spanish, and any other language that the 
Director determines to be appropriate, of--
            (1) the rights conferred under this section; and
            (2) the procedural and other requirements of the 
        regulations promulgated under subsection (i).
    (k) Coordination.--In carrying out this section, the Director shall 
coordinate with the Administrator of the Small Business Administration, 
other Federal agencies, State and local agencies, and any other 
individual or entity, as the Director determines to be necessary--
            (1) to ensure the efficient administration of the claims 
        process; and
            (2) to provide for local concerns.
    (l) Applicability of Debt Collection Requirements.--
            (1) In general.--Section 3716 of title 31, United States 
        Code, shall not preclude any payment on a claim.
            (2) Assignment and exemption from claims of creditors.--
                    (A) Assignment.--No assignment, release, or 
                commutation of a payment due or payable under this 
                section shall be valid.
                    (B) Exemption.--
                            (i) In general.--A payment under this 
                        section shall be exempt from all claims of 
                        creditors and from levy, execution, attachment, 
                        or other remedy for recovery or collection of a 
                        debt.
                            (ii) Nonwaivable exemption.--The exemption 
                        provided by clause (i) may not be waived.
            (3) Exception.--Notwithstanding paragraph (2), the Director 
        may--
                    (A) require the repayment, using a payment under 
                this section, of any disaster loan made by the Small 
                Business Administration to address injury suffered as a 
                result of the attack; and
                    (B) use the remedies provided by subchapter II of 
                chapter 37 of title 31, United States Code, in 
                collecting debts due to the Federal Government that 
                arise from this Act.

SEC. 6. ACCEPTANCE OF SERVICES OF OTHER AGENCIES AND VOLUNTEERS; GIFTS.

    In carrying out this Act, the Director may--
            (1) accept and use the services or facilities of any State 
        or local government, or of any agency, office, or employee of 
        any State or local government, with the consent of the 
        government;
            (2) use such voluntary and uncompensated services by 
        individuals or organizations as may be needed; and
            (3) accept gifts of supplies, equipment, and facilities to 
        be used in carrying out this Act.

SEC. 7. RELATIONSHIP TO FEDERAL ENTITLEMENT PROGRAMS.

    (a) Requests for Benefits.--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.
    (b) Consideration of Payments as Resources.--A payment on a claim 
received by an injured person under section 5 shall not be taken into 
account in determining the assets or resources of any individual or 
household under any Federal program or federally assisted program that 
provides financial aid, assistance, or benefits based on need, 
including--
            (1) the food stamp program under the Food Stamp Act of 1977 
        (7 U.S.C. 2011 et seq.); and
            (2) any program established under the Social Security Act 
        (42 U.S.C. 301 et seq.).

SEC. 8. REPORTS AND AUDITS.

    (a) Reports.--Not later than 1 year after the date of promulgation 
of interim final regulations under section 5(i) and annually 
thereafter, the Director shall submit to Congress a report that 
describes the claims submitted under section 5(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 5(b); and
            (2) not later than 120 days after the date on which the 
        Director submits to Congress the initial report required by 
        subsection (a) and annually thereafter, submit to Congress a 
        report on the results of the audit.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to carry 
out this Act--
            (1) for administration by the Office of the compensation 
        process $100,000,000; and
            (2) for payment of claims $1,900,000,000.
    (b) Availability.--Amounts made available under subsection (a) 
shall remain available until expended.
    (c) 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. 10. TERMINATION OF AUTHORITY.

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




                                                       Calendar No. 269

107th CONGRESS

  1st Session

                                S. 1624

                          [Report No. 107-116]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                            December 7, 2001

                       Reported with an amendment