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<bill bill-stage="Placed-on-Calendar-Senate" dms-id="A1" public-private="public">

	<form>

		<distribution-code display="yes">II</distribution-code>

		<calendar>Calendar No. 222</calendar>

		<congress>109th CONGRESS</congress>

		<session>1st Session</session>

		<legis-num>S. 1761</legis-num>

		<current-chamber>IN THE SENATE OF THE UNITED STATES</current-chamber>

		<action>

			<action-date date="20050922">September 22, 2005</action-date>

			<action-desc><sponsor name-id="S303">Mr. Thune</sponsor> (for himself,

			 <cosponsor name-id="S299">Mr. Vitter</cosponsor>, <cosponsor name-id="S203">Mr.

			 Lott</cosponsor>, <cosponsor name-id="S288">Ms. Murkowski</cosponsor>, and

			 <cosponsor name-id="S236">Mr. Inhofe</cosponsor>) introduced the following

			 bill; which was read the first time</action-desc>

		</action>

		<action>

			<action-date>September 26, 2005</action-date>

			<action-desc>Read the second time and placed on the

			 calendar</action-desc>

		</action>

		<legis-type>A BILL</legis-type>

		<official-title>To clarify the liability of government contractors

		  assisting in rescue, recovery, repair, and reconstruction work in the Gulf

		  Coast region of the United States affected by Hurricane Katrina or other major

		  disasters.</official-title>

	</form>

	<legis-body>

		<section id="id76F5435AA6D24C7A8674F507F63C3DAE" section-type="section-one"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the

			 <quote><short-title>Gulf Coast Recovery

			 Act</short-title></quote>.</text>

		</section><section id="id5E0F0B160C4B4B77A25B0B0948FD8E6C"><enum>2.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds that—</text>

			<paragraph id="ID305dd2a5b3ee463f8d3e16fdbf6330fa"><enum>(1)</enum><text>while public

			 officials have the responsibility and expertise to direct and control the

			 Federal, State and local response to any disaster, those officials lack the

			 manpower and equipment necessary to take all of the many steps necessary to

			 implement such a response;</text>

			</paragraph><paragraph id="ID73ddf415e37246178f017cc29d39f31e"><enum>(2)</enum><text>in the wake of a

			 disaster, public officials have to depend on private contractors for logistical

			 and other support;</text>

			</paragraph><paragraph id="ID856e37fff82d43b99d699274e162fcf5"><enum>(3)</enum><text>historically,

			 private contractors have answered the call, providing valuable service to the

			 public in times of disaster;</text>

			</paragraph><paragraph id="ID3f6e10a2b6be48d7b2947ecdc03b9d06"><enum>(4)</enum><text>those contractors

			 answered the call on September 11, 2001, and in the following weeks and months,

			 working hand-in-hand with Federal, State, and local officials to rescue the

			 survivors of the terrorist attacks on that historic date, to recover the bodies

			 of those who died, to remove mountains of debris, to reconstruct the Pentagon,

			 and ultimately, to restore some sense of normalcy to New York City and

			 Arlington, Virginia;</text>

			</paragraph><paragraph id="IDce9d6004640a4527886b4c91206b1491"><enum>(5)</enum><text>the expertise and

			 equipment that private contractors contributed to the Federal, State, and local

			 response to the terrorist attacks on September 11, 2001, greatly enhanced that

			 response, increasing not only the efficiency but also the effectiveness of that

			 response;</text>

			</paragraph><paragraph id="IDe52b32bc65854089bb82866b80710eb5"><enum>(6)</enum><text>the support that

			 private contractors provide to Federal, State, and local officials in times of

			 disaster—</text>

				<subparagraph id="idF52E44B0450C42D7801A06109E6DC427"><enum>(A)</enum><text>make it safer for

			 police, firefighters, and other rescue workers to search for, rescue, and

			 recover both persons and property dislocated by the disaster; and</text>

				</subparagraph><subparagraph id="IDe68e31ef73f64cb4b440a166b26c2dd4"><enum>(B)</enum><text>enable those

			 officials to quickly address dangerous conditions that threaten life and

			 property, to restore basic public services, and to protect public safety and

			 health;</text>

				</subparagraph></paragraph><paragraph id="IDafbfd94f96d64b7ab21614eb1848c4fe"><enum>(7)</enum><text>it is in the

			 national interest to have private contractors assist public officials in times

			 of disaster;</text>

			</paragraph><paragraph id="ID23f385b855db4f8d8d140efdd18db296"><enum>(8)</enum><text>by providing

			 support to the Federal, State or local response to a disaster, private

			 contractors risk future litigation and liability even if those contractors are

			 in full compliance with all Federal, State, and local laws (including

			 regulations) that apply to their work;</text>

			</paragraph><paragraph id="ID23b0db1f5bed45f187dca8d8226c34d2"><enum>(9)</enum><text>class action

			 lawsuits have been brought against the private contractors that supervised the

			 heroic response to the terrorist attacks on the World Trade Center in New York

			 City on September 11, 2001;</text>

			</paragraph><paragraph id="ID25454b0e675c40d4857d5a283f1a7d5e"><enum>(10)</enum><text>well-founded

			 fears of future litigation and liability under existing law discourage

			 contractors from assisting in times of disaster;</text>

			</paragraph><paragraph id="IDc6169912ea714d3a9dcbed3663c80d95"><enum>(11)</enum><text>whether private

			 contractors remain willing to offer their expertise and equipment to public

			 officials in times of disaster substantially affects, burdens, and deters

			 interstate commerce and travel;</text>

			</paragraph><paragraph id="ID6de36d3a568241f296e633d5e6b2a681"><enum>(12)</enum><text>clarifying the

			 liability that private contractors must ultimately risk simply to support a

			 Federal, State, or local response to a disaster will help—</text>

				<subparagraph id="idCD49C3E2987D4C0B96191E909502EB07"><enum>(A)</enum><text>to ensure that

			 those contractors continue to answer the governmental requests for assistance

			 in times of great need; and</text>

				</subparagraph><subparagraph id="IDd446ef9e352f4c52aff1ec844dc4c78a"><enum>(B)</enum><text>to limit the

			 legal expenses that regrettably but inevitably inflate the cost of the recovery

			 from a disaster; and</text>

				</subparagraph></paragraph><paragraph id="ID171432deaf0544daabf3c16056a6e54c"><enum>(13)</enum><text>temporarily

			 insulating private contractors from any liability that private parties may seek

			 to impose on the contractors under certain Federal laws would increase the

			 power and authority of the Federal agencies that bear the primary

			 responsibility for the administration of those laws to effectively direct and

			 control the response to a disaster.</text>

			</paragraph></section><section id="idD292450A9BCC44CE80986B9D96FF266B"><enum>3.</enum><header>Definitions</header><text display-inline="no-display-inline">In this Act:</text>

			<paragraph commented="no" display-inline="no-display-inline" id="id69F930DE646E43B8B82FCB7982879DA4"><enum>(1)</enum><header>Disaster

			 zone</header><text display-inline="yes-display-inline">The term <term>disaster

			 zone</term> means—</text>

				<subparagraph commented="no" display-inline="no-display-inline" id="id0AD0C819B16044FA8F1C223C07B139DC"><enum>(A)</enum><text display-inline="yes-display-inline">the region of the United States in which

			 major disasters relating to Hurricane Katrina were declared by the President on

			 August 29, 2005, in accordance with section 401 of the Robert T. Stafford

			 Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170); and</text>

				</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id01B001566B2B40DCA14615E986BC1B6C"><enum>(B)</enum><text display-inline="yes-display-inline">any other region of the United States in

			 which a major disaster is so declared after that date, if the disaster requires

			 the provision of Federal assistance in an amount that exceeds $15,000,000,000,

			 as determined by the President.</text>

				</subparagraph></paragraph><paragraph id="id3DF7DCD6E8CF4548B59567D931D0E6AE"><enum>(2)</enum><header>Government

			 contract</header><text>The term <term>government contract</term> means—</text>

				<subparagraph id="id99AD8F0F500242A58C551C0B2A51D21C"><enum>(A)</enum><text>a contract

			 between—</text>

					<clause id="id5184E0D41ED34A0A96912EC95E2D29DB"><enum>(i)</enum><text>a

			 person, proprietorship, partnership, limited liability company, or corporation

			 in the regular business of providing materials, labor, equipment, or services

			 for construction-related activities (including construction, demolition,

			 repair, clean-up, alteration, remediation, and related engineering); and</text>

					</clause><clause id="id56FF00C76F614D04B923D604F656639C"><enum>(ii)</enum><text>any agency or

			 instrumentality of the Federal Government or any State or local government;

			 and</text>

					</clause></subparagraph><subparagraph id="id4B437A24C291472396C5DD357E809A69"><enum>(B)</enum><text>a subcontract at

			 any tier of a contract described in subparagraph (A).</text>

				</subparagraph></paragraph></section><section id="id23F27A13126943138C6B45479F41346E"><enum>4.</enum><header>Limitation on

			 liability of Federal contractors under certain Federal laws</header>

			<subsection id="idFD802F76FF2645079CC3944AEF2FA309"><enum>(a)</enum><header>In

			 general</header><text>Notwithstanding any other provision of law, a person or

			 entity awarded a government contract to perform rescue, recovery, repair, or

			 reconstruction work in any portion of a disaster zone shall not, as a result of

			 the performance of that work, be subject to liability that any private party

			 may seek to impose under any provision of Federal law (including any

			 regulation) that—</text>

				<paragraph id="id16E65B7ABA4C4DE8A8AF4F369C443190"><enum>(1)</enum><text display-inline="yes-display-inline">is administered by the Secretary of the

			 Army, the Administrator of the Environmental Protection Agency, or the

			 Secretary of Transportation; and</text>

				</paragraph><paragraph id="id6D8C4FC42DE14F2EB23EBB0A79EDDD2C"><enum>(2)</enum><text display-inline="yes-display-inline">otherwise permits the filing of a lawsuit

			 by a private individual.</text>

				</paragraph></subsection><subsection id="id3CAFC74E9170454E924A7D349C97AD16"><enum>(b)</enum><header>Effect on

			 litigation management</header><text display-inline="yes-display-inline">Nothing

			 in this section limits or otherwise affects the application of section 5 of

			 this Act.</text>

			</subsection><subsection id="idED454E8BD3214AE29FEC504CDD4C7CE0"><enum>(c)</enum><header>Effect on

			 existing law</header><text>Nothing in this Act limits or otherwise affects the

			 application, to a person or entity described in subsection (a), of—</text>

				<paragraph id="id286D5EAEE5934806A69B089FE721D2DE"><enum>(1)</enum><text>title VII of the

			 Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.);</text>

				</paragraph><paragraph id="id783957B247FC462F8258B59F62937EE0"><enum>(2)</enum><text>the Fair Labor

			 Standards Act of 1938 (29 U.S.C. 201 et seq.); or</text>

				</paragraph><paragraph id="idF42B942DA6794B2DAD1048D0221643FB"><enum>(3)</enum><text>a comparable

			 State fair employment practice law.</text>

				</paragraph></subsection></section><section id="idF30935DFC27441FDA789AA17C2CCB9E3"><enum>5.</enum><header>Litigation

			 management</header>

			<subsection id="id56365EA1400F490C806E61AEEDA10703"><enum>(a)</enum><header>Federal cause

			 of action</header>

				<paragraph id="id966E22DDAD804E5AB6FA90DA2051DC08"><enum>(1)</enum><header>In

			 general</header><text>There shall exist a Federal cause of action for claims

			 arising out of, relating to, or resulting from the performance of a government

			 contract, whether oral or written, in a disaster zone for—</text>

					<subparagraph id="idE8A50922B4A249E4B118937CFA4072BA"><enum>(A)</enum><text>the search,

			 rescue, or recovery of individuals or property dislocated by the

			 disaster;</text>

					</subparagraph><subparagraph id="id99B696A880784DBABD925FD106955C3D"><enum>(B)</enum><text>the demolition,

			 removal, repair, or reconstruction of structures or utilities damaged by the

			 disaster;</text>

					</subparagraph><subparagraph id="idC44A503A9A0B4D87B3901BB31C199126"><enum>(C)</enum><text>the clean-up or

			 remediation of property polluted by the disaster;</text>

					</subparagraph><subparagraph id="id653B7DBEEA9E492D916227EC00AAF57E"><enum>(D)</enum><text>the removal of

			 debris deposited by the disaster (including dredging); or</text>

					</subparagraph><subparagraph id="idB3BB10C092304E5A8D3898822EF5AC7D"><enum>(E)</enum><text>the dewatering of

			 property flooded by the disaster.</text>

					</subparagraph></paragraph><paragraph id="idAF5136BB8D69476EBD50BA58A970589A"><enum>(2)</enum><header>Substantive

			 law</header><text>The substantive law for decision in any action described in

			 paragraph (1) shall be derived from the law, including choice of law

			 principles, of the State in which the government contract was performed.</text>

				</paragraph><paragraph id="id679406E15A8A4AC8B24821886969ABD4"><enum>(3)</enum><header>Claims</header><text>A

			 Federal cause of action shall be brought under this subsection only for claims

			 for injuries or damages proximately caused by a person or entity awarded a

			 government contract.</text>

				</paragraph><paragraph id="ID4436f8ebb64640f4b99190ee55fb406e"><enum>(4)</enum><header>Jurisdiction</header><text>The

			 appropriate United States district court shall have original and exclusive

			 jurisdiction over all actions for any claim for loss of property, personal

			 injury, or death arising out of, relating to, or resulting from the performance

			 of a government contract, whether oral or written, for an activity described in

			 any of subparagraphs (A) through (E) of paragraph (1).</text>

				</paragraph></subsection><subsection id="IDbee825848e1741b8b6cba78168cf1070"><enum>(b)</enum><header>Special

			 rules</header>

				<paragraph id="id87FDD41B76984AF0B803E20A82440033"><enum>(1)</enum><header>In

			 general</header><text>The requirements described in paragraphs (2) through (4)

			 shall apply to an action brought under this section.</text>

				</paragraph><paragraph id="IDcfc0696ec0344a0aa1b91a4d4c591757"><enum>(2)</enum><header>Punitive

			 damages</header><text>No punitive damages intended to punish or deter,

			 exemplary damages, or other damages not intended to compensate a plaintiff for

			 actual losses may be awarded in such an action.</text>

				</paragraph><paragraph id="idDD347E5F585248778CAF70D62AAC87E0"><enum>(3)</enum><header>Interest prior

			 to judgment</header><text>No party to such an action shall be held liable for

			 interest prior to judgment.</text>

				</paragraph><paragraph id="IDd814eb2866a347dda6501d03959a551c"><enum>(4)</enum><header>Noneconomic

			 damages</header>

					<subparagraph id="IDbbf8f17c7b7945428323c7c5b941f754"><enum>(A)</enum><header>Definition of

			 noneconomic damages</header><text>In this paragraph, the term <term>noneconomic

			 damages</term> means damages for losses for physical and emotional pain,

			 suffering, inconvenience, physical impairment, mental anguish, disfigurement,

			 loss of enjoyment of life, loss of society and companionship, loss of

			 consortium, hedonic damages, injury to reputation, and any other nonpecuniary

			 losses.</text>

					</subparagraph><subparagraph id="id57B7C61126624FACA549371AE05321AF"><enum>(B)</enum><header>Award of

			 noneconomic damages</header>

						<clause id="idCE7524C561D54F9C8EA2427A7EEA5A43"><enum>(i)</enum><header>In

			 general</header><text>Noneconomic damages may be awarded against a defendant

			 only in an amount directly proportional to the percentage of responsibility of

			 the defendant for the harm to the plaintiff.</text>

						</clause><clause id="idE13B03B65B6C400D807F1B52AC5AC4BC"><enum>(ii)</enum><header>No physical

			 harm</header><text>No plaintiff may recover noneconomic damages unless the

			 plaintiff suffered physical harm.</text>

						</clause></subparagraph></paragraph></subsection><subsection id="IDc78a7e5d377a4ddf8ad0f451f1090b9c"><enum>(c)</enum><header>Collateral

			 sources</header><text>Any recovery by a plaintiff in an action under this

			 section shall be reduced by the amount of collateral source compensation, if

			 any, that the plaintiff has received or is entitled to receive as a result of

			 the same loss of property, personal injury, or death for which the plaintiff

			 seeks compensation from the defendant.</text>

			</subsection><subsection id="ID54fbb36099d94fd3891fe0e5a83d3875"><enum>(d)</enum><header>Government

			 contractor defense</header>

				<paragraph id="IDe20bdbe8fd2246c4abf747646be61784"><enum>(1)</enum><header>Applicability</header><text>Should

			 a lawsuit be filed for claims arising out of, relating to, or resulting from

			 the performance of a contract that meets the criteria described in paragraph

			 (2), there shall be a rebuttable presumption that—</text>

					<subparagraph id="id6B059B70746C4A2596D8B18AF930A13E"><enum>(A)</enum><text>all elements of

			 the government contractor defense are satisfied; and</text>

					</subparagraph><subparagraph id="id1F1FAC3E2E6F4DA58872C189D8709D57"><enum>(B)</enum><text>the government

			 contractor defense applies in the lawsuit.</text>

					</subparagraph></paragraph><paragraph id="id07652B72B3984D30A1DBC068F5401CEF"><enum>(2)</enum><header>Criteria</header><text>The

			 criteria referred to in paragraph (1) are that—</text>

					<subparagraph id="idD78716FAD2DF4DFDBAA473708BE7B943"><enum>(A)</enum><text>the contract is a

			 government contract that the Chief of Engineers has certified as being

			 necessary for the recovery of a disaster zone from a disaster, as provided in

			 paragraphs (4) and (5); or</text>

					</subparagraph><subparagraph id="id26D5FFA0797E4E2B99DBAFF8D2F492B0"><enum>(B)</enum><text>the

			 contract—</text>

						<clause id="id125F1181DB024FEABD2CB8B32FF84928"><enum>(i)</enum><text>is

			 a subcontract of a contract described in subparagraph (A); and</text>

						</clause><clause id="idED898153455644FEB9340EDAFB3D7008"><enum>(ii)</enum><text>is

			 for an amount that was not reasonably expected, as of the time at which the

			 subcontract was executed, to exceed $10,000,000.</text>

						</clause></subparagraph></paragraph><paragraph id="idE13FE6CD170048C785C86AD716753337"><enum>(3)</enum><header>Overcoming of

			 presumption</header><text>The presumption described in paragraph (1) shall be

			 overcome only by evidence showing that a person or entity awarded a government

			 contract acted fraudulently or with willful misconduct in submitting

			 information to the Chief of Engineers in conjunction with the consideration by

			 the Chief of Engineers of the government contract.</text>

				</paragraph><paragraph id="ID1c9cce73ce3f48dd81a1dc635965c67f"><enum>(4)</enum><header>Exclusive

			 responsibility</header>

					<subparagraph id="id80CE758048F648F9B3FDAB11E27B1D41"><enum>(A)</enum><header>In

			 general</header><text>The Chief of Engineers shall be exclusively responsible

			 for the review of any government contract that any person or entity, including

			 any governmental entity, claims to be necessary for the recovery of a disaster

			 zone from a disaster for the purpose of establishing a government contractor

			 defense in any lawsuit for claims arising out of, relating to, or resulting

			 from the performance of the government contract.</text>

					</subparagraph><subparagraph id="id7880ABBB9D8C4FA6B7A9ED5021F48D24"><enum>(B)</enum><header>Review of

			 scope</header><text>Upon the submission of a request for a certification that a

			 government contract was or will be necessary for the recovery of a disaster

			 zone from a disaster, the Chief of Engineers shall, not later than 30 days

			 after the date of receipt of the request, whether made before or after the

			 award of a government contract—</text>

						<clause id="id14EE6E2AA26F462F883CF48341CD4722"><enum>(i)</enum><text>review the scope

			 of work that the government contract does or will require; and</text>

						</clause><clause id="idA9DCECF1ECC4490FA13882068CB29814"><enum>(ii)</enum><text>determine

			 whether the majority of the work is for 1 or more of the activities described

			 in subparagraphs (A) through (E) of subsection (a)(1).</text>

						</clause></subparagraph><subparagraph id="id6C893917BB38457FAD8F1152209830F5"><enum>(C)</enum><header>Certification</header><text>If

			 the Chief of Engineers determines that at least a majority of the work that the

			 government contract does or will require is for 1 or more of those activities,

			 the Chief of Engineers shall promptly certify that the government contract is

			 necessary for the recovery of the disaster zone from a disaster.</text>

					</subparagraph></paragraph><paragraph id="ID6fa71cbd941f4c4e9c8f131edb0ecafd"><enum>(5)</enum><header>Issuance of

			 certificate</header><text>For each government contract reviewed and certified

			 by the Chief of Engineers under paragraph (4), the Chief of Engineers shall

			 promptly issue a certificate of need for recovery of the applicable disaster

			 zone from a disaster to the person or entity that submitted the request for the

			 certification.</text>

				</paragraph><paragraph id="id7C21057F4E344D6180AE9461716F212F"><enum>(6)</enum><header>Records</header><text>The

			 Chief of Engineers shall maintain records of certifications made, and

			 certificates issued, under this subsection.</text>

				</paragraph></subsection><subsection id="ID0b880f3daebe40b8921e120c98ce9561"><enum>(e)</enum><header>Effect on

			 claims and law</header>

				<paragraph id="id0BA6C351C9984D1DA98F1B60AC514415"><enum>(1)</enum><header>Claims for

			 loss; enforcement actions</header><text>Nothing in this section applies

			 to—</text>

					<subparagraph id="idA8A3937F1A244D0C86EF60238500D7BF"><enum>(A)</enum><text>any claim for

			 loss under any workers compensation law; or</text>

					</subparagraph><subparagraph id="id8DF99155A5884B0CA287421AB54B22DF"><enum>(B)</enum><text>any enforcement

			 action that any governmental entity may bring against any person or entity

			 allegedly for violating any Federal or State law (including a

			 regulation).</text>

					</subparagraph></paragraph><paragraph id="idD809B069F2994435B8E5306393BF546B"><enum>(2)</enum><header>Government

			 contractor defense</header><text>Nothing in this section limits or restricts

			 the government contractor defense as that defense exists at common law.</text>

				</paragraph><paragraph id="idB3D7C5A5A2A44DBC96603FB6468D3AA1"><enum>(3)</enum><header>Recklessness or

			 willful misconduct</header><text>Nothing in subsection (b), (c), or (d) affects

			 the liability of any person or entity for recklessness or willful

			 misconduct.</text>

				</paragraph></subsection></section></legis-body>

	<endorsement>

		<action-date>September 26, 2005</action-date>

		<action-desc>Read the second time and placed on the

		  calendar</action-desc>

	</endorsement>

</bill>

