[Congressional Record Volume 147, Number 172 (Wednesday, December 12, 2001)]
[Senate]
[Page S13057]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CORZINE (for himself and Mr. Torricelli):
  S. 1812. A bill to repeat the provision of the September 11th Victim 
Compensation Fund of 2001 that requires the reduction of a claimant's 
compensation by the amount of any collateral source compensation 
payments the claimant is entitled to receive, and for other purposes; 
to the Committee on the Judiciary.
  Mr. CORZINE. Madam President, today along with Senator Torricelli I 
am introducing legislation to ensure that the families who suffered 
tremendous losses in the terrorist attacks on September 11th receive 
the compensation they deserve and need to move forward with their 
lives. The bill would eliminate provisions in current law that reduce 
the compensation to which they are entitled because of contributions 
received from other sources.
  New Jersey has been tragically affected by the terrorist attacks of 
September 11. This past weekend, I met with over 400 family members who 
lost a loved one on the 11th. These people are dealing with 
unimaginable pain, and many are struggling as they try to provide for 
the security of their families.
  To obtain assistance, families are being forced to navigate through 
extensive paperwork burdens. They have filled out countless forms and 
made countless calls seeking answers about the benefits to which they 
are entitled. Yet many fear that, notwithstanding their efforts, they 
will be unable to secure the assistance that they need so badly.
  The American people want to help these victims, and Congress has 
acted in an effort to make that happen. Soon after September 11, as 
part of broader legislation to support the airline industry, Congress 
established a fund to compensate the victims of the attacks, the 
September 11 Victim Compensation Fund.
  Under that legislation, victims and their families can choose to seek 
compensation from the Fund, in return for relinquishing their right to 
file suit against an airline. Those victims who opt-in are eligible for 
full economic and non-economic damages, but not punitive damages. The 
amount of compensation will be determined by a Special Master, Kenneth 
Feinberg.
  The purpose of the Fund is to ensure that victims are fully 
compensated without having to go to court, a process that could take 
many years for families who urgently need assistance. I support this 
goal. Unfortunately, in our desire to both aid the industry by limiting 
their liability and to provide compensation to the victims and their 
families, we rushed the legislation to enactment without sufficient 
consideration of how the Fund would operate.
  As a result, the law contains a glaring flaw. It includes a 
``collateral source'' rule, which requires the Special Master to deduct 
the amount of life insurance and pension payments from the amount of 
compensation that would otherwise be available to victims and families 
under the Fund. This rule, in my view, is a serious mistake, and 
threatens to deny needed compensation for many of these victims.
  It is wrong to treat victims of the disaster on September 11 any 
differently. Reducing their awards not only harms these families, it 
also runs counter to the goals of the original legislation. After all, 
if families cannot obtain the compensation they need through the 
Victims Compensation Fund, some of them will be forced to go straight 
to court. That will delay the compensation they need, and subject 
airlines to costs and liability that Congress sought to protect them 
against.
  I would note, that in addition to repealing the collateral source 
rule, my legislation makes clear that charitable donations should not 
be considered collateral sources and should not count against 
compensation awarded under the Fund. This no only ensures that families 
get the compensation they need, but its ensures that those who have 
made charitable contributions are not treated unfairly. After all, 
those who have generously sent checks to charitable organizations did 
not think that their contributions would reduce Federal compensation. 
In effect, such a reduction would be a tax on people who have 
contributed their own funds in an effort to help. In addition, without 
such a clarification, charities may withhold funds for victims until 
after they recover from the fund, in order to avoid an offset.
  Recovery under the Victims' Compensation Fund is not the only relief 
that these grieving families need. Although charities have provided 
some assistance to families over the past three months, that funding 
has only been a stopgap measure. These families need immediate tax 
relief. I am pleased that just before Thanksgiving the Senate passed a 
comprehensive victims' tax relief bill, but unfortunately the House has 
only passed a more narrow version of the legislation.
  These families need immediate relief so that they can plan and 
provide for their families. They need: a waiver of federal income tax 
liability for this year and last year; payroll tax relief--this is 
particularly important to low-wage workers, who are less likely to 
benefit from the waiver of income tax liability, and are also less 
likely to have left their families with life insurance and pensions; 
reduced estate taxes; exclusion of survivor, disability and emergency 
relief benefits from taxation; and finally, we need to make it easier 
for charitable organizations to make disaster relief payments to help 
victims and their families with both short-term and long-term needs, 
such as scholarships for victims' children.
  Many of these proposals are based on provisions in current law that 
provide tax relief to soldiers who die in combat and government 
employees who die in terrorist attacks outside the United States. 
Extending these provisions to the victims of the terrorist attacks is 
appropriate because the attacks of September 11 were attacks on our 
entire nation.
  Last week some families came down here to meet with the New Jersey 
delegation and House and Senate leadership to plead for immediate 
assistance, so that they can pay their mortgages, keep children in 
school, and keep their heads above water. They made their case 
powerfully and effectively, and we in Congress must no let them down.
  I urge my colleagues to stand up for these victims and support my 
legislation. I asks unanimous consent the text of the bill be printed 
in the Record.
  There being no object, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1812

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``September 11th Victim 
     Compensation Fund Fairness Act''.

     SEC. 2. REPEAL OF COLLATERAL COMPENSATION PROVISION.

       (a) Repeal of Collateral Compensation Provision.--Section 
     405(b)(6) of the September 11th Victim Compensation Fund of 
     2001 (49 U.S.C. 40101 note) is hereby repealed.
       (b) Application of the September 11th Victim Compensation 
     Fund of 2001.--The compensation program established under the 
     September 11th Victim Compensation Fund of 2001 (49 U.S.C. 
     40101 note) shall be administered as if section 405(b)(6) of 
     that Act had not been enacted.

     SEC. 3. AMENDMENT OF COLLATERAL SOURCE DEFINITION.

       Paragraph (6) of section 402 of the September 11th Victim 
     Compensation Fund of 2001 (49 U.S.C. 40101 note) is amended 
     by adding at the end the following: ``The term `collateral 
     source' does not include payments or other assistance 
     received from a nonprofit organization, if such organization 
     is described in paragraph (3) or (4) of section 501(c) of the 
     Internal Revenue Code of 1986 and is exempt from tax under 
     section 501(a) of such Code.''.

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