[Congressional Record Volume 151, Number 152 (Wednesday, November 16, 2005)]
[Senate]
[Pages S12875-S12876]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
THE ASBESTOS BILL
Mr. REID. Mr. President, I want to comment briefly on the statement
of the distinguished majority leader this
[[Page S12876]]
morning that the first piece of legislation we will consider in January
2006, after we return from the winter recess, will be the asbestos
bill. What a mistake. I know Senator Specter has worked hard on this
issue. In fact, Senator Specter and his good friend and former school
roommate Judge Becker, a judge from Pennsylvania, have worked together
on this bill for countless hours. However, whatever that personal
relationship and despite how long and hard they may have worked on this
bill, is not acceptable in its current form. It is not even close.
All you have to do is look at a bipartisan letter that was sent to
Senators Frist and this Senator, Senator Reid, two days ago, dated
November 14, 2006. The letter was sent by both the chairman of the
Budget Committee, Judd Gregg of New Hampshire, and the ranking member,
Kent Conrad from North Dakota, and stresses that this asbestos bill is
not ready for floor action.
They write:
. . . we are in the process of gathering data and evaluating
available studies in order to provide Senate Members a better
understanding of the likely budgetary implication of S. 852.
. . .
There are potentially serious costs to Federal taxpayers in
this legislation. S. 852 would create a national trust fund
to compensate victims of asbestos exposures in lieu of those
victims pursuing compensation through the tort system. The
legislation was reported by the Senate Judiciary Committee on
May 26, 2005. There remain, however, major unresolved
questions about the budgetary impact of this bill. These
include: the actual cost of the program; whether proposed
funding will be sufficient to compensate all claims; clarity
on the allocation of assessments to business and insurance
entities, including the balance of those assessments and
whether these assessments will generate adequate revenues to
satisfy the program's costs; the amount that will be borrowed
from the Federal Government under the bill's Federal
borrowing authority. The legislation proposes a fund of $140
billion. CBO has advised that this amount could be sufficient
to satisfy the program's claims and costs. CBO also
cautioned, however that this amount could be insufficient,
depending on a number of issues. . . .
Following the release of the CBO report, the Bates White
economic consulting firm released a study demonstrating the
fund could experience additional costs beyond the proposed
amount between $161 billion and $421 billion.
Mr. President, $421 billion in additional costs. The letter
concludes:
Because of the major adverse impact the legislation could
have on the Federal budget deficit if there are funding
shortfalls, we ask that at least until these issues are fully
resolved, that the Senate not take any further action on the
legislation.
Mr. President, this bill is not ripe for floor debate and will not be
in January. This bill does not adequately address the needs of the
dying victims who cannot wait for this trust fund to be established.
The bill doesn't address the needs of victims if the trust fund runs
out of money, which it clearly seems destined to do. The bill provides
special benefits for victims at one asbestos site but ignores the needs
of victims at another site. In another letter to Senators Frist and
this Senator, Senator Reid, dated yesterday, November 15, 2005, from
the Asbestos Victims Groups United, the victims write:
. . . [W]e write to express our continued and unified
opposition to S. 852. We strongly believe that the bill is
unfair to victims and is unworkable. . . . We believe it
would be wholly irresponsible for Congress to proceed with
consideration and passage of this legislation without
accurate and complete information concerning the funding
issue and the critical factors associated with it. Please do
not allow the families who have lost so much to be victimized
again.
This legislation will victimize asbestos victims and it will drive
American companies out of business. I had a meeting not long ago with
the only company in America that still makes wire. They said if this
bill goes into effect they will go into bankruptcy. They are able to
handle the situation now, but this bill demands that they contribute to
a fund for which they have no responsibility. They are willing to take
their lumps in the business world as they know them, but they will not
be able to sustain themselves if they are told they have to contribute
huge amounts of money to this fund.
Another company representative I have met said they spend $1 million
a year on asbestos litigation, but if this bill goes into effect, they
will go bankrupt because they can't afford the contributions they will
be called on to make.
Let us not rush into asbestos legislation. Let us not do it fast; let
us do it right. We owe it to the American taxpayers, to our American
businesses and we certainly owe it to our asbestos victims to take the
time to get it right.
The PRESIDING OFFICER (Mr. Vitter). The Senator from North Carolina
is recognized.
Mr. REID. Mr. President, if I could, I am confident the Chair
recognizes that I used leader time for my statement.
The PRESIDING OFFICER. The Senator is correct. The Chair is aware of
that.
Mr. SCHUMER. Mr. President, a point of order.
The PRESIDING OFFICER. The Senator from North Carolina has the floor.
She can yield time.
Mr. SCHUMER. I want to ask a question so I can establish the floor
order.
The PRESIDING OFFICER. The next 30 minutes is controlled by the
majority, followed by 30 minutes controlled by the minority.
The Senator from North Carolina.
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