[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