[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.
____________________