[Congressional Record Volume 151, Number 111 (Thursday, September 8, 2005)]
[Senate]
[Pages S9847-S9852]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                         HURRICANE KATRINA FOOD

  Mr. HARKIN. Mr. President, for milions of people in the Gulf Coast, 
Hurricane Katrina has shredded the very fabric of everyday life. As my 
colleagues from Louisiana, Mississippi, and Alabama have already 
described, the needs are immeasurable. For many people, it will be 
years before their lives return to normal. And untold others have paid 
with their lives. We hold the citizens of Louisiana, Mississippi, and 
Alabama in our thoughts and in our prayers.
  This storm calls on each of us to respond in the best way that we 
can. And people around the United States are opening their homes and 
their hearts to the victims of Hurricane Katrina.
  Among the most immediate and pressing needs of many who have been hit 
by hurricane Katrina is a fundamental one--food. Displaced individuals 
with no ready source of income must, among all of their daily worries, 
still struggle with the basic task of feeding their families. This 
situation is exacerbated by the simple fact that retail food outlets 
have ceased to operate throughout the Gulf Coast. The Department of 
Agriculture has estimated that food stamp program caseloads alone are 
likely to increase by 1.4 million people because of Katrina. 
Furthermore, the Department says that this is a ``very conservative'' 
estimate and that the real need may be considerably greater than this.
  In Louisiana alone, over 400,000 people are already receiving food 
stamps through the Emergency Food Stamp Program. In Texas, over 100,000 
people have received emergency food stamps. These numbers are rising 
rapidly with every passing day and are certain to continue to do so.
  No American should live in the shadow of hunger and food insecurity, 
least of all those displaced and devastated by natural disasters. 
Fortunately, the Federal Government has long provided food assistance 
to help individuals and families in need. The Department of Agriculture 
is already working hard to get commodities and emergency food stamps to 
the victims of Hurricane Katrina. And while there has been much 
criticism of the disaster efforts generally, I have yet to hear of 
complaints about the response from the Department of Agriculture. Even 
so, we can and must do more.
  That is why today, with my colleague Senator Leahy, I am introducing 
the Hurricane Katrina Food Assistance Relief Act of 2005. I am hopeful 
that my colleagues will join us in working to pass this legislation 
expeditiously to enhance our Federal response to the needs of hungry 
Americans devastated by Hurricane Katrina.
  This proposal would provide USDA with additional funding and 
authorities to provide a strong and continuous response to the food 
needs of thousands of families adversely affected by Hurricane Katrina. 
The legislation builds upon the capacities of several Federal programs 
to assist our citizens in need. The legislation targets three groups of 
households: Those living in areas hit by Katrina, those who have lost 
jobs in the disaster areas, and those who have relocated from the 
disaster area to other parts of the country.
  This bill provides additional funds to allow for unanticipated 
caseload increases in the Special Supplemental Nutrition Program for 
Women, Infants, and Children.
  It also gives the Department of Agriculture additional funds to 
purchase bulk commodities and to provide emergency food through food 
banks and local food pantries.
  The legislation especially strengthens the ability of the Food Stamp 
Program to respond to this tremendous disaster by increasing benefit 
amounts, expanding eligibility, and streamlining the application 
process and the delivery of benefits. It also provides additional 
Federal funds to State food stamp agencies that are likely to be 
overwhelmed by the workload associated with helping all those who seek 
aid.
  I ask that my colleagues on both sides of the aisle join with Senator 
Leahy and me in continuing to shape an appropriate response to the food 
needs of the victims of Hurricane Katrina. The legislation that we are 
introducing today is a good faith effort and is, I believe, a generous 
and appropriate starting point. But I have no doubt that it may be 
improved. I welcome the advice and suggestions of my colleagues on both 
sides of the aisle and look forward to doing all that we can with all 
necessary haste to bring relief to the victims of Hurricane Katrina.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1643

       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 ``Hurricane Katrina Food 
     Assistance Relief Act of 2005''.

     SEC. 2. DEFINITION OF SECRETARY.

       In this Act, the term ``Secretary'' means the Secretary of 
     Agriculture.

     SEC. 3. FOOD STAMP PROGRAM DISASTER AUTHORITY.

       (a) In General.--Section 5(h) of the Food Stamp Act of 1977 
     (7 U.S.C. 2014(h)) is amended by adding at the end the 
     following:
       ``(4) Response to hurricane katrina.--
       ``(A) Definitions.--In this paragraph:
       ``(i) Affected area.--
       ``(I) In general.--The term `affected area' means an area 
     of a State that the Secretary determines was affected by 
     Hurricane Katrina or a related condition.
       ``(II) Inclusion.--The term `affected area' includes any 
     area that, as a result of Hurricane Katrina or a related 
     condition, was covered by--

       ``(aa) a natural disaster declaration under section 321(a) 
     of the Consolidated Farm and Rural Development Act (7 U.S.C. 
     1961(a)); or
       ``(bb) a major disaster or emergency designation under the 
     Robert T. Stafford Disaster Relief and Emergency Assistance 
     Act (42 U.S.C. 5121 et seq.).

       ``(ii) Affected household.--
       ``(I) In general.--The term `affected household' means a 
     household--

       ``(aa) in an affected area;
       ``(bb) in which a member worked immediately prior to August 
     29, 2005, in an affected area;
       ``(cc) that was displaced as a result of Hurricane Katrina 
     or a related condition to other areas of the same or another 
     State; or
       ``(dd) that the Secretary determines should receive relief 
     under this paragraph as a result of Hurricane Katrina or a 
     related condition.

       ``(II) Inclusion.--The term `affected household' includes a 
     household containing 1 or more individuals that were 
     displaced as a result of Hurricane Katrina or a related 
     condition, as determined by the Secretary.
       ``(iii) Disaster recovery period.--
       ``(I) In general.--The term `disaster recovery period' 
     means the period of 180 days beginning on the date of 
     enactment of this paragraph.
       ``(II) Extension.--The disaster recovery period shall be 
     extended for another 180 days unless the President determines 
     that the extension is not necessary to fully meet the needs 
     of affected households.
       ``(B) Disaster recovery period.--During the disaster 
     recovery period--
       ``(i) clauses (iv) and (v) of subsection (g)(2)(B), 
     subsections (d) and (o) of section 6, and section 8(c)(1) 
     shall not apply to affected households;
       ``(ii) the application of an affected household shall be 
     processed under the procedures established under section 
     11(e)(9);
       ``(iii) the State agency shall increase the value to the 
     affected household of the thrifty food plan determined under 
     section 3(o) by 10 percent when calculating the value of the 
     allotment for an affected household under section 8(a);
       ``(iv) the Secretary shall pay each State agency an amount 
     equal to 100 percent of administrative costs allowable under 
     section 16(a) related to serving affected households in lieu 
     of the payments section 16(a) would otherwise require for 
     those costs;
       ``(v) an affected household shall be considered to meet the 
     requirements of subsection (c)(2) if the income of the 
     affected household, as calculated under subsection (c)(2), 
     does not exceed the level permitted under subsection (c)(1) 
     by more than 50 percent;
       ``(vi) any resource to which the household lost access 
     because of Hurricane Katrina or a related condition shall not 
     be considered a financial resource under subsection (g);
       ``(vii) any funds designated for rebuilding or relocation 
     (including payments from Federal, State, or local 
     governments, charitable organizations, employers, or 
     insurance companies) shall be excluded from consideration 
     under subsection (g) in determining the eligibility of an 
     affected household; and
       ``(viii) an affected household may not be considered to 
     customarily purchase food and prepare meals together with 
     other individuals if the affected household did not 
     customarily purchase food and prepare meals for home 
     consumption with those individuals immediately prior to 
     August 29, 2005.
       ``(C) Duplicate participation.--
       ``(i) In general.--The Secretary shall take such actions as 
     are prudent and reasonable under the circumstances to 
     identify affected households that are participating in more 
     than 1 State and to terminate the duplicate participation of 
     those households.
       ``(ii) No action taken.--Except in the case of deliberate 
     falsehoods, no action may be

[[Page S9848]]

     taken against any affected household relating to any 
     duplicate participation during the disaster recovery period 
     that takes place prior to termination under clause (i).
       ``(D) Claims relating to benefits.--Except in the case of 
     intentional program violations as determined under section 
     6(b), no claim may be established under section 13(b) 
     relating to benefits issued under this subsection.
       ``(E) Payment error rate.--For purposes of determining the 
     payment error rate of a State agency under section 16(c), the 
     Secretary shall disregard any errors resulting from the 
     application of this paragraph to an affected household during 
     the disaster recovery period.
       ``(F) Effect of more generous disaster plans.--This 
     paragraph shall not supersede any provision of a plan 
     approved under paragraph (1) that--
       ``(i) provides more complete or expeditious relief to 
     affected households; or
       ``(ii) provides assistance to more individuals.''.
       (b) Program Information Activities.--
       (1) In general.--From funds otherwise appropriated for the 
     food stamp program established under the Food Stamp Act of 
     1977 (7 U.S.C. 2011 et seq.), the Secretary may use not more 
     than $5,000,000 for the period of fiscal year 2005 through 
     2006 to enter into contracts with nonprofit organizations to 
     support household and community efforts to address the food 
     assistance and related needs resulting from Hurricane Katrina 
     or a related condition.
       (2) Expediting provisions.--Notwithstanding any other 
     provision of law, the Secretary shall not be required--
       (A) to provide public notice of the availability of funds 
     described in paragraph (1); or
       (B) to accept competitive bids for contracts under this 
     subsection.

     SEC. 4. EMERGENCY FOOD ASSISTANCE PROGRAM AND SECTION 32 
                   ASSISTANCE.

       (a) Definition of Eligible Recipient.--In this section, the 
     term ``eligible recipient'' means an individual or household 
     that, as determined by the Secretary in consultation with the 
     Secretary of Homeland Security--
       (1) is a victim of Hurricane Katrina or a related 
     condition;
       (2) has been displaced by Hurricane Katrina or a related 
     condition; or
       (3) is temporarily housing 1 or more individuals displaced 
     by Hurricane Katrina or a related condition.
       (b) Assistance.--
       (1) In general.--In addition to funds otherwise made 
     available for fiscal year 2005 or 2006 to carry out the 
     emergency food assistance program established under the 
     Emergency Food Assistance Act of 1983 (7 U.S.C. 7501 et 
     seq.), out of any funds in the Treasury not otherwise 
     appropriated, the Secretary of the Treasury shall transfer to 
     the Secretary of Agriculture $200,000,000 to remain available 
     until expended to provide a variety of food to eligible 
     recipient agencies for providing food assistance to eligible 
     recipients, including--
       (A) special supplemental foods for pregnant women and 
     infants or for other individuals with special needs;
       (B) infant formula;
       (C) bottled water; and
       (D) fruit juices.
       (2) Use of funds.--Funds made available under paragraph (1) 
     may be used to provide commodities in accordance with--
       (A) section 27 of the Food Stamp Act of 1977 (7 U.S.C. 
     2036);
       (B) section 203A of the Emergency Food Assistance Act of 
     1983 (7 U.S.C. 7504); and
       (C) section 204 of the Emergency Food Assistance Act of 
     1983 (7 U.S.C. 7508).
       (3) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation. 
       (c) Section 32 Funding.--In addition to funds otherwise 
     made available under section 32 of the Act of August 24, 1935 
     (7 U.S.C. 612c), the Secretary shall use not less than 
     $200,000,000 of funds made available under that section to 
     provide food assistance to eligible recipients, including 
     food described in subparagraphs (A) through (D) of subsection 
     (b)(1).

     SEC. 5. WIC FUNDING.

       (a) In General.--Out of any funds in the Treasury not 
     otherwise appropriated, in addition to other funds otherwise 
     made available to the Secretary for fiscal year 2005 or 2006 
     to carry out the special supplemental nutrition program for 
     women, infants, and children established by section 17 of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1786), the Secretary 
     of the Treasury shall transfer to the Secretary of 
     Agriculture to carry out that program $200,000,000, to remain 
     available until September 30, 2007.
       (b) Receipt and Acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under subsection (a), 
     without further appropriation. 
       (c) Emergency Designation.--The amounts made available by 
     the transfer of funds in or pursuant to subsection (a) are 
     designated as an emergency requirement pursuant to section 
     402 of H. Con. Res. 95 (109th Congress).
       (d) Allocation of Funds.--Notwithstanding section 17(i) of 
     the Child Nutrition Act of 1966 (42 U.S.C. 1786(i)), the 
     Secretary may allocate funds made available under subsection 
     (a) as the Secretary determines to be necessary to provide 
     assistance to women, infants, and children who, as determined 
     by the Secretary in consultation with the Secretary of 
     Homeland Security--
       (1) are victims of Hurricane Katrina or a related 
     condition; or
       (2) have been displaced by Hurricane Katrina or a related 
     condition.

     SEC. 6. COMMODITY SUPPLEMENTAL FOOD PROGRAM FUNDING.

       (a) In General.--Out of any funds in the Treasury not 
     otherwise appropriated, in addition to other funds otherwise 
     made available to the Secretary for fiscal year 2005 or 2006 
     to carry out the commodity supplemental food program 
     established under section 5 of the Agriculture and Consumer 
     Protection Act of 1973 (7 U.S.C. 612c note; Public Law 93-
     86), the Secretary of the Treasury shall transfer to the 
     Secretary of Agriculture $20,000,000 to carry out that 
     program.
       (b) Receipt and Acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under subsection (a), 
     without further appropriation. 
       (c) Emergency Designation.--The amounts made available by 
     the transfer of funds in or pursuant to subsection (a) are 
     designated as an emergency requirement pursuant to section 
     402 of H. Con. Res. 95 (109th Congress).
       (d) Allocation of Funds.--The Secretary shall use funds 
     made available under subsection (a) as the Secretary 
     determines to be necessary to provide assistance to 
     individuals who, as determined by the Secretary in 
     consultation with the Secretary of Homeland Security--
       (1) are victims of Hurricane Katrina or a related 
     condition; or
       (2) have been displaced by Hurricane Katrina or a related 
     condition.

     SEC. 7. REPORT.

       Not later than 180 days after the date of enactment of this 
     Act, the Secretary, in consultation with the Secretary of 
     Homeland Security, shall submit to the Committee on 
     Agriculture of the House of Representatives and the Committee 
     on Agriculture, Nutrition, and Forestry of the Senate a 
     report that--
       (1) describes whether additional funding or authority is 
     needed to continue to address the food needs of eligible 
     recipients; and
       (2) includes any determination by the President under 
     section 5(h)(4)(A)(iii)(II) of the Food Stamp Act of 1977 (as 
     added by section 3(a)) that an extension of the disaster 
     recovery period is not necessary to fully meet the needs of 
     affected households.

     SEC. 8. REGULATIONS.

       (a) In General.--The Secretary may promulgate such 
     regulations as are necessary to implement this Act.
       (b) Procedure.--The promulgation of the regulations and 
     administration of this Act shall be made without regard to--
       (1) the notice and comment provisions of section 553 of 
     title 5, United States Code;
       (2) the Statement of Policy of the Secretary of Agriculture 
     effective July 24, 1971 (36 Fed. Reg. 13804), relating to 
     notices of proposed rulemaking and public participation in 
     rulemaking; and
       (3) chapter 35 of title 44, United States Code (commonly 
     known as the ``Paperwork Reduction Act'').
       (c) Congressional Review of Agency Rulemaking.--In carrying 
     out this section, the Secretary shall use the authority 
     provided under section 808 of title 5, United States Code.
                                 ______
                                 
      By Mrs. BOXER:
  S. 1644. A bill to promote the employment of workers displaced by 
Hurricane Katrina in connection with Hurricane Katrina reconstruction 
efforts; to the Committee on Homeland Security and Governmental 
Affairs.
  Mrs. BOXER. Mr. President, we have all watched in horror as the Gulf 
Coast has been struck by what could be the worst natural disaster in 
U.S. history, leaving unimaginable suffering in its wake. It is 
difficult to put into words how heartbroken we are for the Americans 
affected by Hurricane Katrina.
  Brave souls everywhere are still searching for some family members, 
while trying to keep others alive and hopeful. We have seen the 
inspiring courage of the survivors and dedicated men and women working 
around the clock to help them.
  Thousands of people have lost their lives. Far more have lost life as 
they know it--their families, their homes, their communities, and their 
jobs.
  There has already been an increase in people filing for unemployment 
benefits due to Hurricane Katrina. And, the jobs that have been lost 
will be gone for a long time.
  To help people who have lost their jobs because of this crisis, I am 
introducing the ``Hurricane Katrina Reconstruction and Displaced Worker 
Assistance Act of 2005.''
  This legislation would give priority in awarding Federal contracts 
for the rebuilding efforts to those companies where workers displaced 
by Hurricane Katrina comprise at least 25 percent of the workforce 
fulfilling the contract. This will help provide jobs to those who have 
been severely affected by the hurricane.

[[Page S9849]]

  We must show those who have suffered so much that their government 
will help them rebuild their lives. I urge my colleagues to support the 
bill.
                                 ______
                                 
      By Mrs. BOXER:
  S. 1645. A bill to establish a first responder interoperable 
communications grant program; to the Committee on Homeland Security and 
Governmental Affairs.
  Mrs. BOXER. Mr. President, today I am reintroducing a bill to provide 
help to State and local first responders in purchasing interoperable 
communications systems--so that everyone can talk to one another during 
an emergency.
  This need has been glaringly apparent for over a decade now, but 
especially since the 2001 terrorist attacks. It was all the more 
evident in the aftermath of Hurricane Katrina.
  The 9/11 Commission described the inability to communicate as ``a 
critical element'' at the World Trade Center and at the crash sites, 
where multiple agencies and multiple jurisdictions responded in 
September 2001. And yet four years after that attack, our first 
responders still cannot talk to each other.
  Let me mention just one example from the areas affected by Hurricane 
Katrina.
  National Guard members have compared communications capabilities in 
New Orleans unfavorably with those in Iraq. Ground commanders for New 
Orleans have been functioning without the ability to track the location 
of some units reporting to them. This is unacceptable.
  Almost every community I visit in California--from big to small--
mentions the need for interoperable communications for first responders 
and the need for assistance from the federal government. California 
suffered from a lack of interoperable communications in the fall of 
2003, when communities could not communicate with each other to convey 
what was happening with fires that were sweeping through the State, 
greatly complicating the response.
  We need to provide funding so that State and local first responders 
can purchase the technology that makes interoperability possible. We 
need to do our job at the national level and provide our first 
responders with the resources to protect our communities in the case of 
a terrorist attack, natural disaster, or other emergency.
  I have tried to get funds for interoperable communication systems as 
part of the Intelligence Bill, the Rail Security Bill, and the Homeland 
Security Appropriations Bill. The time to act is past. We need to get 
this done before the next disaster strikes, which is why I am 
reintroducing this bill.
  My bill would authorize $300 million for each of the next 5 years to 
help State and local agencies improve existing communications systems 
or purchase new systems. This funding would help local agencies 
purchase equipment for real-time interoperable communication between 
first responders.
  Guaranteeing that first responders will have the communications 
equipment necessary to respond to a future attack is exactly the kind 
of preemptive action we should have taken after 9/11 and should be 
taking now.
  A report on the needs of first responders by Warren Rudman and 
Richard Clarke found that fixing this problem would cost $6.8 billion. 
My bill does not fund this all, but we need to do something.
  This bill is an important step in fulfilling our federal 
responsibility to protect our citizens during emergencies. I urge my 
colleagues to support it.
                                 ______
                                 
      By Mr. AKAKA (for himself, Mr. Reid, and Mrs. Murray):
  S. 1646. A bill to provide for the care of veterans affected by 
Hurricane Katrina; to the Committee on Veterans' Affairs.
  Mr. AKAKA. Mr. President, I rise today to introduce legislation that 
would provide continuous care to those veterans that have been affected 
by Hurricane Katrina, one of the worst natural disasters that our 
country has ever experienced. The Department of Veterans Affairs, VA 
has played an integral role in the disaster relief efforts of Hurricane 
Katrina, beginning with the successful evacuation of patients, staff 
and family members, and now in the recovery stage of the aftermath.
  Earlier today, I attended a briefing given by VA Secretary Nicholson 
and other VA officials on VA's response to the hurricane. VA truly 
stepped up in the midst of this crisis, and successfully evacuated all 
of their patients and staff without any loss of life. I commend VA for 
their coordination and execution of their relief effort. The Department 
should serve as a model for other government agencies in dealing with 
disasters.
  There is one area, however, where I believe even more can be done to 
help veterans in Louisiana and Mississippi who have been affected by 
this tragedy. The legislation I'm introducing will extend a 
humanitarian hand to those middle-income veterans in the region who do 
not have access to VA health care because of a decision made by this 
administration in 2003. The bill extends hospital care and medical 
services to the Priority 8 veterans affected by Hurricane Katrina, who 
have previously been denied access to the system.
  Veterans residing in areas of New Orleans, LA; Biloxi, MS, or 
Gulfport, MS, during the hurricane--who have most likely lost 
everything in this disaster--will be able to find solace in knowing 
that VA will continue to be there for them even after the media 
attention fades. It would simply be wrong to exclude these men and 
women who have served our country from VA services, especially now in 
their time of need. This bill also serves to relieve some of the 
financial burden placed on the veterans by waiving copayments for care 
and medications.
  VA's mission is to take care of veterans and also to provide support 
to other Federal agencies during times of disaster. VA has upheld that 
mission by establishing a legacy of first rate health care for veterans 
and now through the response efforts to Hurricane Katrina. We can do 
more for these veterans by allowing VA to serve as a beacon of hope in 
their time of recovery.
  I would like to thank the countless VA volunteers that have answered 
the call of duty to our Nation, just as our veterans once did. These 
volunteers have left their duty stations to support efforts at the 
surrounding VA hospitals that have taken on the evacuated patients, as 
well as manning the mobile clinics currently touring the affected areas 
to provide care. These men and women are true heroes.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1646

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

     SECTION 1. HEALTH CARE AND SERVICES FOR VETERANS AFFECTED BY 
                   HURRICANE KATRINA.

       (a) Requirement for Hospital Care and Medical Services for 
     Priority 8 Veterans Affected by Hurricane Katrina.--
       (1) Requirement.--The Secretary of Veterans Affairs shall 
     furnish hospital care and medical services which the 
     Secretary determines to be needed to each priority 8 veteran 
     affected by Hurricane Katrina as if such veteran were a 
     veteran described by section 1710(a)(2) of title 38, United 
     States Code.
       (2) Enhanced enrollment priority.--For purposes of 
     furnishing hospital care and medical services under paragraph 
     (1), the Secretary shall deem each priority 8 veteran 
     affected by Hurricane Katrina, upon the date of presentation 
     of such veteran to the Department of Veterans Affairs for 
     such care and services, to have enrolled in the system of 
     annual patient enrollment of the Department under section 
     1705(a) of title 38, United States Code, on the first day of 
     the current year of such system in which such date falls.
       (b) Prohibition on Collection of Copayments for Veterans 
     Affected by Hurricane Katrina.--In furnishing hospital care 
     and medical services to any veteran affected by Hurricane 
     Katrina, the Secretary shall not collect from or with respect 
     to such veteran any payment for such care and services 
     otherwise required under any provision of law, including any 
     copayment for medications otherwise required under section 
     1722A of title 38, United States Code.
       (c) Definitions.--In this section:
       (1) The term ``veteran affected by Hurricane Katrina'' 
     means any veteran who, as of August 29, 2005, resided in the 
     catchment region of the Department of Veterans Affairs 
     medical center in New Orleans, Louisiana, Biloxi, 
     Mississippi, or Gulfport, Mississippi.
       (2) The term ``priority 8 veteran affected by Hurricane 
     Katrina'' means any veteran affected by Hurricane Katrina 
     who, as of August 29, 2005, would have been treated as a 
     veteran covered by paragraph (8) of section 1705(a) of title 
     38, United States Code, for

[[Page S9850]]

     purposes of enrollment in the system of annual patient 
     enrollment of the Department of Veterans Affairs under such 
     section.
                                 ______
                                 
      By Mr. FEINGOLD (for himself, Ms. Landrieu, Mr. Leahy, Mr. 
        Durbin, Mr. Lieberman, Mr. Bayh, Mrs. Clinton, Ms. Cantwell, 
        Mr. Akaka, Mr. Obama, Mr. Kennedy, Mr. Harkin, Mrs. Boxer, Mr. 
        Salazar, Mr. Corzine, and Mrs. Feinstein):
  S. 1647. A bill to amend title 11, United States Code, to provide 
relief to victims of Hurricane Katrina and other natural disasters; to 
the Committee on the Judiciary.
  Mr. FEINGOLD. Mr. President, in the wake of Hurricane Katrina, the 
Senate is faced with a daunting but absolutely crucial task. How can 
Congress best respond to the horrific damage caused by this disaster? I 
want to express my full support to the people from all of the affected 
regions in Louisiana, Mississippi, and Alabama and their congressional 
delegations. In this time of desperate need, we all must pull together 
and do everything we can to help.
  We can see the devastating effects of the hurricane and flooding on 
our television screens every night. It will take years to rebuild the 
affected areas. In the meantime, the residents and small businesses in 
those areas have suffered catastrophic losses. Some will undoubtedly, 
through no fault of their own, have to file for bankruptcy sometime in 
the future. The bankruptcy system is an important safety net for people 
who suffer this kind of devastation. In this country, we do not 
sentence people who have been through a disaster of this type to a 
lifetime of financial servitude. Bankruptcy lets them get a fresh 
start. And a fresh start is what so many of the relief efforts going on 
are all about.
  As my colleagues are aware, Congress earlier this year enacted major 
changes to the Bankruptcy Code. The Bankruptcy Abuse Prevention and 
Consumer Protection Act (``BAPCPA'') was the first major overhaul of 
the bankruptcy system in more than 25 years. Most provisions of the new 
law will become effective on October 17, 2005, six months after 
enactment. Any bankruptcy case filed before that date is still subject 
to current law.
  We do not yet know how many families affected by this disaster will 
end up filing for bankruptcy. A study just released a few days ago by 
Professor Bob Lawless, a law professor at the University of Nevada, 
indicates that bankruptcy filings increase significantly in areas where 
natural disasters occur. Professor Lawless looked at 18 hurricanes and 
tropical storms since 1980 and the rate of bankruptcy filings in the 
States where the storms made landfall compared to the surrounding 
States and the rest of the country. He looked at the effects in the 
first, second and third year after the event.
  According to this study, bankruptcy filings climbed in landfall 
States at more than 1\1/2\ times the pace of unaffected States and 
remained stuck at that rate even three years later. Given the enormous 
impact of this storm, we can expect a similar if not greater, increase 
in filings. And this new influx of filings will occur just as the new 
law is going into effect. Katrina victims will in essence be guinea 
pigs, testing the new provisions with the most desperate of 
circumstances.
  The new bankruptcy law makes it significantly more difficult and 
complicated to file for bankruptcy. No one disputes that. It was 
intended to weed out abusers of the system. It contains new 
documentation requirements and the so-called ``means test'' which is a 
fairly rigid formula designed to identify debtors who really can 
continue to pay their debts and shouldn't get a discharge.
  Everyone in the Senate knows that I strongly opposed the BAPCPA and 
tried very hard to amend it to make it less onerous for good faith 
debtors. But my goal now is not to try to undermine or reopen the new 
law, but simply to make sure that it doesn't compound the hardship 
faced by victims of Hurricane Katrina and other natural disasters. That 
is what the bill I will introduce today, the Hurricane Katrina 
Bankruptcy Relief and Community Protection Act of 2005, aims to do.
  This bill first deals directly with the fact that the new law is 
scheduled to take effect only a month and a half from now, when the 
victims of Katrina will still be in the initial stages of putting their 
lives back together. I believe the best way to handle this 
extraordinary situation is to give Katrina victims a grace period 
during which the old bankruptcy law, which has essentially been in 
effect for 27 years, will still apply to their cases. The bill provides 
that cases filed within one year of the effective date of the new law 
by people who lived in the natural disaster area declared by the 
President will be handled under the law in effect on August 29, 2005, 
the date of the hurricane. This provision will mean that all the 
complicated work to apply and interpret the new law that will take 
place in the first year after it becomes effective will not affect the 
cases of the victims of Hurricane Katrina.
  I understand that some may argue that the new law contains adequate 
safeguards and judicial discretion to deal with the concerns I have 
raised. But we can't know that for sure at this point. At the very 
least, there will be litigation and disagreement over how some 
provisions will be interpreted. Those issues will be settled by the 
courts all across the country, and that process will not be affected by 
this bill. But Katrina's victims should not be the test cases. Giving 
them a year to proceed under the old law seems entirely reasonable.
  Providing this added grace period also addresses the fact that some 
of the hurricane victims might have filed their petitions before 
October 17 were it not for the hurricane. These people have been 
deprived of that right, which Congress provided in the new law itself, 
by a natural disaster. Given all they are now going through, we should 
give them adequate time to take care of their most immediate needs 
before closing the door on their ability to file for bankruptcy under 
the old law. A one year grace period should be sufficient, and seems 
fair.
  Professor Lawless's study indicates that the financial effects of a 
disaster like Katrina last for more than a year. And of course, there 
will be future disasters, perhaps some as grave as this one. I believe 
we need to take a close look at the new bankruptcy law and make sure 
that disaster victims are treated fairly. There is simply no 
justification for applying provisions designed to stop abuse of the 
system to people who have been through this kind of disaster. 
Therefore, the bill makes a number of other amendments to the new law 
that will apply not only to Katrina victims who file for bankruptcy 
after the one year grace period is over but to victims of other natural 
disasters. Let me describe some of those provisions.
  First, the bill builds on an exemption to the means test that applies 
to disabled veterans and simply adds victims of natural disasters to 
that exemption. No person driven to bankruptcy by a natural disaster 
should have a case dismissed or converted to a Chapter 13 filing under 
the means test.
  The bill also exempts from the definition of income any payments from 
FEMA, the Red Cross, or other disaster relief funds. Whatever money 
people receive to help them survive the aftermath of a disaster should 
not be included in the calculation of how much they have available to 
satisfy their creditors. Generous citizens around the country are 
making contributions to make sure disaster victims are fed and clothed 
and their homes rebuilt, not to give more money to the credit card 
companies.
  The bill contains a provision to make clear that expenses incurred as 
a result of a disaster are considered reasonable expenses for purposes 
of the means test. The rigid IRS standards obviously don't include 
money to replace things that were lost in a hurricane, or pay for a 
hotel stay while a home is rebuilt.
  Another provision of the new law that seems unfair to apply to 
victims of natural disasters requires that debtors seek credit 
counseling before they file for bankruptcy. The new law already 
includes a provision to exempt debtors who are on active duty military 
service overseas or who are incompetent or disabled if that status 
makes them unable to complete the requirement. Victims of natural 
disasters deserve a similar exemption. If they can't complete credit 
counseling because they live in a shelter with no access to the 
Internet or because they have no records for the credit counselor to 
evaluate, they shouldn't be prevented from filing for bankruptcy.

[[Page S9851]]

  One of the most tragic effects of a natural disaster is homelessness. 
Millions of homes were destroyed by Katrina. People who lived in these 
homes will be in temporary shelters for months, but may eventually find 
apartments to live in in a new location. If they end up having to file 
for bankruptcy, that filing puts in place an automatic stay of any 
legal proceedings against them, including eviction proceedings for 
nonpayment of rent. The automatic stay allows debtors to get their 
affairs in order and catch up on their rent payments, but the new law 
makes it much easier for landlords to have the stay lifted. The 
prospect of a natural disaster victim being put out on the street 
during a bankruptcy proceeding should be chilling to all Americans. 
This bill will simply require landlords of natural disaster victims to 
seek a lifting of the stay without the expedited procedures and special 
treatment that the new law provides.
  Another provision of the bill gives some extra relief to natural 
disaster victims from the fairly rigid deadlines that are established 
for filing certain paperwork in connection with a bankruptcy filing. 
This is a very reasonable step that simply recognizes that obtaining or 
filing the necessary tax returns, identity documents, documentation of 
income and other items may be significantly more difficult, or even 
impossible for a period of time, for natural disaster victims than it 
is for other debtors.
  Finally, the bill also provides relief for small businesses that are 
put in dire financial condition by a natural disaster. The new law 
includes some very tight and unmovable deadlines for small businesses 
seeking to reorganize under Chapter 11. If we want to help as many 
businesses hit by disasters to survive as possible, we need to give the 
courts flexibility to extend those deadlines.
  I know that many people in this body worked very hard over a period 
of many years to pass the BAPCPA. As much as we disagreed about the 
merits of that bill, I respect their hard work. But I truly hope that 
my colleagues will not let pride of authorship or the fact that they 
supported that bill stand in the way of providing desperately needed 
help to the victims of Hurricane Katrina and other natural disasters. 
The changes in this bill are modest and will apply to a relatively 
small number of people. I suppose some may argue that they are not 
absolutely necessary, but I believe, at the least, that a very good 
argument can be made that they are. Shouldn't we err on the side of 
helping people whose lives have been ripped apart? Shouldn't we take 
every precaution to make sure that the horror of a natural disaster is 
not compounded by a bankruptcy law that is too rigid or too harsh? I 
believe that is the least we can do in these circumstances.
  I hope my colleagues will join me in supporting these modest but 
important changes to the law. I ask that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1647

       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 ``Hurricane Katrina Bankruptcy 
     Relief and Community Protection Act of 2005''.

     SEC. 2. BANKRUPTCY RELIEF FOR VICTIMS OF HURRICANE KATRINA.

       (a) In General.--Notwithstanding any other provision of 
     law, the provisions of title 11, United States Code, as in 
     effect on August 29, 2005, shall apply to any case described 
     in subsection (b).
       (b) Eligibility.--A case described in this subsection is a 
     case commenced during the 12-month period beginning on the 
     effective date of the Bankruptcy Abuse Prevention and 
     Consumer Protection Act of 2005, under title 11, United 
     States Code (other than under chapter 12 of that title 11), 
     by or on behalf of a debtor--
       (1) who resides, or who resided on August 29, 2005, in any 
     area that is subject to a declaration by the President of a 
     major disaster, as defined under section 102 of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5122) in connection with Hurricane Katrina; and
       (2) whose financial condition is materially adversely 
     affected by the major disaster.

     SEC. 3. DEFINITIONS; WHO MAY BE A DEBTOR.

       (a) Current Monthly Income.--Section 101(10A)(B) of title 
     11, United States Code, is amended--
       (1) by striking ``and payments'' and inserting 
     ``payments''; and
       (2) by inserting before the period at the end ``, and 
     payments to victims of a natural disaster, on account of 
     their status as victims of a natural disaster''.
       (b) Natural Disaster; Natural Disaster Zone.--Section 101 
     of title 11, United States Code, is amended--
       (1) by redesignating paragraphs (40A) and (40B) as 
     paragraphs (40C) and (40D), respectively; and
       (2) by inserting after paragraph (40) the following:
       ``(40A) The term `natural disaster' means--
       ``(A) a major disaster, as defined in section 102 of the 
     Robert T. Stafford Disaster Relief and Emergency Assistance 
     Act (42 U.S.C. 5122); or
       ``(B) a situation similar to such a major disaster (as so 
     defined), with respect to which a determination is made in 
     accordance with State law that such situation exists.
       ``(40B) The term `natural disaster zone' means the 
     geographical area included in the determination of a natural 
     disaster.''.
       (c) Victim of Natural Disaster.--Section 101 of title 11, 
     United States Code, is amended by adding at the end the 
     following:
       ``(56) The term `victim of a natural disaster' means a 
     person--
       ``(A) whose financial condition is materially adversely 
     affected by a natural disaster; and
       ``(B) whose domicile, residence, or principal place of 
     business in the United States, or whose principal assets in 
     the United States, were located in a natural disaster zone 
     immediately preceding the event that caused the natural 
     disaster.''.
       (d) Who May Be a Debtor.--Section 109(h)(4) of title 11, 
     United States Code, is amended by inserting ``natural 
     disaster,'' after ``disability,''.

     SEC. 4. AMENDMENTS TO CHAPTER 3.

       Section 362(b)(22) of title 11, United States Code, is 
     amended by inserting ``(excluding a debtor who is a victim of 
     a natural disaster)'' after ``debtor'' the first place that 
     term appears.

     SEC. 5. AMENDMENTS TO CHAPTER 5.

       Section 521 of title 11, United States Code, is amended by 
     adding at the end the following:
       ``(k) The Court may extend any time period specified in 
     this section as may be necessary if--
       ``(1) the debtor is a victim of a natural disaster; and
       ``(2) the debtor's status as a victim of a natural disaster 
     necessitates such extension of time.''.

     SEC. 6. AMENDMENTS TO CHAPTER 7.

       (a) Debtor's Monthly Expenses.--Section 707(b)(2)(A)(ii) of 
     title 11, United States Code, is amended by adding at the end 
     the following:
       ``(IV) In addition, the debtor's monthly expenses may 
     include the actual reasonably necessary expenses incurred as 
     a result of being a victim of a natural disaster.''.
       (b) Limitation on Conversion of Case.--Section 707(b)(2) of 
     title 11, United States Code, is amended by adding at the end 
     the following:
       ``(E) Subparagraphs (A), (B), and (C) shall not apply, and 
     the court may not dismiss or convert a case under this 
     subsection, if the debtor is a victim of a natural 
     disaster.''.

     SEC. 7. AMENDMENTS TO CHAPTER 11.

       (a) Conversion of Case.--Section 1112(b) of title 11, 
     United States Code, is amended--
       (1) in paragraph (2)(B)(i), by inserting ``, including a 
     natural disaster'' before the semicolon; and
       (2) in paragraph (3), by inserting ``(including a natural 
     disaster)'' after ``circumstances''.
       (b) Who May File a Plan.--Section 1121(e)(3) of title 11, 
     United States Code, is amended--
       (1) in subparagraph (A), by inserting ``(i)'' after 
     ``(A)'';
       (2) in subparagraph (C), by striking the period at the end 
     and inserting ``; or'';
       (3) by redesignating subparagraphs (B) and (C) as clauses 
     (ii) and (iii), respectively; and
       (4) by adding at the end the following:
       ``(B) the debtor is unable to meet the deadline because of 
     a natural disaster.''.
       (c) Extension of Time for Small Businesses.--Chapter 11 of 
     title 11, United States Code, is amended--
       (1) in the table of sections, by adding at the end the 
     following:

``1117 Extension of time for small businesses''; and

       (2) in subchapter I, by adding at the end the following:

     ``Sec. 1117. Extension of time for small businesses

       ``Notwithstanding any other provision of this title, in a 
     small business case, the court may extend any deadline 
     specified in this chapter if the court finds that such 
     extension is--
       ``(1) necessary to protect the best interests of the 
     creditors and the estate; or
       ``(2) warranted by a natural disaster.''.

     SEC. 8. AMENDMENTS TO CHAPTER 13.

       (a) Conversion or Dismissal.--Section 1307(e) of title 11, 
     United States Code, is amended by adding at the end the 
     following:
     ``The Court may extend any time period specified in this 
     subsection as may be necessary if--
       ``(1) the debtor is a victim of a natural disaster; and
       ``(2) the debtor's status as a victim of a natural disaster 
     necessitates such extension of time.''.
       (b) Filing of Prepetition Tax Returns.--Section 1308 of 
     title 11, United States Code,

[[Page S9852]]

     is amended by adding at the end the following:
       ``(d) The Court may extend any time period specified in 
     this subsection as may be necessary if--
       ``(1) the debtor is a victim of a natural disaster; and
       ``(2) the debtor's status as a victim of a natural disaster 
     necessitates such extension of time.''.

     SEC. 9. AMENDMENTS TO TITLE 28, UNITED STATES CODE.

       Section 1408 of title 28, United States Code, is amended--
       (1) by inserting ``(a)'' before ``Except'', and
       (2) by adding at the end the following:
       ``(b) If a case under title 11 cannot be commenced in a 
     district court described in subsection (a) because a person 
     is the victim of a natural disaster (as defined in section 
     101 of title 11), then a case under title 11 may be commenced 
     by such person in the district court for the district in 
     which such person resides.''.

     SEC. 10. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

       (a) Effective Date.--This Act and the amendments made by 
     this Act shall take effect on October 18, 2005.
       (b) Application of Amendments.--The amendments made by this 
     Act shall apply only with respect to cases commenced under 
     title 11 of the United States Code on and after October 17, 
     2005.

                          ____________________