S 1624 IS

107th CONGRESS

1st Session

S. 1624

To establish the Office of World Trade Center Attack Claims to pay claims for injury to businesses and property suffered as a result of the attack on the World Trade Center in New York City that occurred on September 11, 2001, and for other purposes.

IN THE SENATE OF THE UNITED STATES

November 1, 2001

Mrs. CLINTON (for herself and Mr. SCHUMER) introduced the following bill; which was read twice and referred to the Committee on Environment and Public Works

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A BILL

To establish the Office of World Trade Center Attack Claims to pay claims for injury to businesses and property suffered as a result of the attack on the World Trade Center in New York City that occurred on September 11, 2001, and for other purposes.

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 `World Trade Center Attack Claims Act'.

SEC. 2. DEFINITIONS.

In this Act:

(1) AFFECTED AREA- The term `affected area' means the area in lower Manhattan, New York City, that is comprised of--

(A) the area located south of Chambers Street and west of Broadway; and

(B) the area located south of Worth Street and east of Broadway.

(2) ATTACK- The term `attack' means the attack on the World Trade Center in New York City that occurred on September 11, 2001.

(3) CLAIM- The term `claim' means a claim by an injured person under this Act for payment for injury suffered by the injured person as a result of the attack.

(4) CLAIMANT- The term `claimant' means an injured person that submits a claim under section 4(b).

(5) DIRECTOR- The term `Director' means--

(A) the Director of the Federal Emergency Management Agency; or

(B) if an Independent Claims Manager is appointed under section 3(d)(4), the Independent Claims Manager.

(6) INJURED PERSON-

(A) IN GENERAL- The term `injured person' means an individual, corporation, partnership, company, association, cooperative, joint venture, limited liability company, estate, trust, or nonprofit organization that--

(i) suffered injury as a result of the attack; and

(ii) resides or maintains a place of business in the affected area.

(B) EXCLUSIONS- The term `injured person' does not include--

(i) a lender that holds a mortgage on or security interest in real or personal property affected by the attack; or

(ii) a person that holds a lien on real or personal property affected by the attack.

(7) OFFICE- The term `Office' means the Office of World Trade Center Attack Claims established by section 3.

SEC. 3. OFFICE OF WORLD TRADE CENTER ATTACK CLAIMS.

(a) IN GENERAL- There is established within the Federal Emergency Management Agency an office to be known as the `Office of World Trade Center Attack Claims'.

(b) PURPOSE- The Office shall receive, process, and pay claims in accordance with section 4.

(c) FUNDING- The Office--

(1) shall be funded from funds made available under this Act; and

(2) may reimburse any other Federal agency for provision of assistance in the receipt and processing of claims.

(d) PERSONNEL-

(1) IN GENERAL- The Office may appoint and fix the compensation of such temporary personnel as are necessary to carry out the duties of the Office, without regard to the provisions of title 5, United States Code, governing appointments in the competitive service.

(2) PERSONNEL FROM OTHER AGENCIES- On the request of the Director, the head of any other Federal agency may detail, on a reimbursable basis, any of the personnel of the agency to the Federal Emergency Management Agency to assist the Office in carrying out the duties of the Office under this Act.

(3) EFFECT ON OTHER FEMA DUTIES- The establishment of the Office shall not diminish the authority of, or funding available to, the Director to carry out the responsibilities of the Federal Emergency Management Agency under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), including the timely provision of disaster assistance to any area with respect to which a major disaster or emergency is declared by the President to exist during the period in which the Director carries out this Act.

(4) APPOINTMENT OF INDEPENDENT CLAIMS MANAGER- The Director may appoint an Independent Claims Manager to head the Office and to assume the duties of the Director under this Act.

SEC. 4. COMPENSATION FOR VICTIMS OF THE ATTACK.

(a) IN GENERAL- Each injured person shall be entitled to receive from the United States compensation for injury suffered by the injured person as a result of the attack, as determined by the Director in accordance with subsection (d).

(b) SUBMISSION OF CLAIMS-

(1) IN GENERAL- Not later than 2 years after the date on which interim final regulations are promulgated under subsection (l), an injured person may submit to the Director a written claim for payment of injury suffered by the injured person as a result of the attack in accordance with such requirements as the Director determines to be appropriate.

(2) STATEMENT OF USE OF PAYMENT-

(A) IN GENERAL- Subject to subparagraph (B), an injured person shall include in a written claim submitted under paragraph (1) a statement of the purposes for which any payment on the claim will be used.

(B) AUTHORIZED USES- An injured person may use a payment on a claim only to continue, repair, replace, start, establish, or locate, in New York City, a business or residence that was located, before September 11, 2001, in the affected area.

(c) INVESTIGATION OF CLAIMS- The Director shall investigate, adjust, grant, deny, or settle any claim submitted under subsection (b).

(d) AMOUNT OF PAYMENT-

(1) IN GENERAL- Any payment on a claim by an injured person--

(A) shall be limited to the amount necessary to compensate the injured person for injury described in paragraph (2) suffered as a result of the attack during the period beginning on September 11, 2001, and ending on March 11, 2003;

(B) shall be subject to subsection (e)(1)(C);

(C) shall not include--

(i) interest on the amount of the payment before the date of settlement or payment of a claim; or

(ii) punitive damages or any other form of noncompensatory damages; and

(D) shall not exceed $500,000, except in the case of a claim for which the Director determines that a greater amount is appropriate.

(2) TYPES OF INJURY-

IN GENERAL- Under paragraph (1), subject to subparagraph (B), an injured person may receive payment for--

(i) an uninsured or underinsured property loss;

(ii) damage to or destruction of physical infrastructure;

(iii) damage to or destruction of tangible assets or inventory;

(iv) a business interruption loss;

(v) overhead costs;

(vi) employee wages for work not performed;

(vii) an insurance deductible;

(viii) a temporary living or relocation expense; and

(ix) debris removal and other cleanup costs; and

(x) any other type of injury that the Director determines to be appropriate.

(B) LIMITATION ON CERTAIN TYPES OF BUSINESS LOSS- An injured person may receive payment for a type of injury specified in clause (iv), (v), or (vi) only if the injured person has experienced, as a result of the attack, with respect to a business facility of the person--

(i) disruption in power;

(ii) disruption in telecommunications capacity;

(iii) damage to or destruction of physical infrastructure; or

(iv) disruption in physical access.

(3) BURDEN OF PROOF-

(A) IN GENERAL- Subject to subparagraph (B), a claimant shall have the burden of demonstrating injury suffered by the claimant.

(B) ABSENCE OF DOCUMENTS- If documentary evidence substantiating injury is not reasonably available, the Director may pay a claim based on an affidavit or other documentation executed by the claimant.

(4) APPLICABILITY OF STATE LAW- Except as otherwise provided in this section, the law of the State of New York shall apply to the determination of injury under this subsection.

(e) PAYMENT OF CLAIMS-

(1) DETERMINATION AND PAYMENT OF AMOUNT-

(A) IN GENERAL- Not later than 180 days after the date on which a claim is submitted under subsection (b), the Director shall--

(i) determine the amount, if any, to be paid for the claim; and

(ii) pay the amount.

(B) PARAMETERS OF DETERMINATION- In determining and paying a claim, the Director shall determine only--

(i) whether the claimant is an injured person;

(ii) whether the injuries that are the subject of the claim resulted from the attack;

(iii) the amount, if any, to be paid under this section; and

(iv) the person or persons entitled to receive the amount.

(C) INSURANCE AND OTHER BENEFITS-

(i) IN GENERAL- Subject to clause (ii), to prevent recovery by a claimant in excess of the equivalent of actual compensatory damages in accordance with subsection (d), the Director, in determining the amount of, and paying, a claim, shall reduce the amount to be paid for the claim by an amount that is equal to the sum of the payments or settlements of any kind that were paid, or will be paid, with respect to the claim, including--

(I) payments on insurance policies;

(II) benefits under the public assistance program, individual assistance program, or other program of the Federal Emergency Management Agency or under a program of any other Federal, State, or local agency; and

(III) financial assistance provided by a charitable or other nonprofit, nongovernmental organization.

(ii) GOVERNMENT LOANS- Clause (i) shall not apply to the receipt by a claimant of any Federal, State, or local government loan that is required to be repaid by the claimant.

(2) ADVANCE AND PARTIAL PAYMENTS-

(A) IN GENERAL- At the request of a claimant, the Director may make 1 or more advance or partial payments before the final settlement of a claim, including final settlement on any portion of a claim that is determined to be severable.

(B) JUDICIAL DECISION- If a claimant receives a partial payment on a claim, but the Director denies any further payment on the claim, the claimant may--

(i) seek judicial review under subsection (j); and

(ii) retain any partial payment that the claimant received, unless the Director determines that the claimant--

(I) was not eligible to receive the partial payment; or

(II) fraudulently obtained the partial payment.

(f) ACCEPTANCE OF PAYMENTS ON CLAIMS- The acceptance by a claimant of a payment on a claim under this section, except an advance or partial payment under subsection (e)(2), shall--

(1) be final and conclusive on the claimant with respect to all claims arising out of or relating to the same subject matter;

(2) subject to subsection (h), be final and conclusive on the United States; and

(3) include a certification by the claimant, made under penalty of perjury and subject to section 1001 of title 18, United States Code, that the claim of the claimant is true and correct.

(g) USE OF PAYMENTS ON CLAIMS- An injured person may use a payment on a claim only for the purposes stated in the statement submitted under subsection (b)(2).

(h) RECOVERY OF FUNDS IMPROPERLY PAID OR MISUSED- The United States may recover any portion of a payment on a claim that--

(1) was improperly paid to the claimant as a result of--

(A) fraud or misrepresentation on the part of the claimant or a representative of the claimant;

(B) a material mistake on the part of the United States;

(C) the payment of benefits described in subsection (e)(1)(C) that were not taken into account in determining the amount of the payment; or

(D) the failure of the claimant to cooperate in an audit; or

(2) is used by the claimant in violation of subsection (g).

(i) ARBITRATION-

(1) IN GENERAL- Not later than 45 days after the date of enactment of this Act, the Director shall establish by regulation procedures under which a dispute concerning a claim may be settled by arbitration.

(2) ARBITRATION AS REMEDY- On establishment of arbitration procedures under paragraph (1), an injured person that submits a claim that is disputed may elect to settle the claim through arbitration.

(3) BINDING EFFECT- An election by an injured person to settle a claim through arbitration under this subsection shall--

(A) be binding; and

(B) preclude any exercise by the injured person of the right to judicial review of a claim under subsection (j).

(j) JUDICIAL REVIEW-

(1) IN GENERAL- A claimant aggrieved by a final decision of the Director under this section may bring, not later than 60 days after the date on which the decision is issued, a civil action in the United States District Court for the Southern District of New York to modify or set aside the decision, in whole or in part.

(2) RECORD- The court shall hear a civil action under paragraph (1) on the record made before the Director.

(3) STANDARD OF REVIEW- The court shall uphold the decision of the Director if the decision is supported by substantial evidence on the record as a whole.

(k) ATTORNEY'S AND AGENT'S FEES-

(1) IN GENERAL- No attorney or agent, acting alone or in combination with any other attorney or agent, shall charge or accept, for services rendered in connection with a claim, a fee in excess of 10 percent of the amount of any payment on the claim.

(2) PENALTY FOR VIOLATION- An attorney or agent who violates paragraph (1) shall be subject to a civil penalty of not more than $10,000.

(l) REGULATIONS- Notwithstanding any other provision of law, not later than 45 days after the date of enactment of this Act, the Director shall promulgate and publish in the Federal Register interim final regulations for the processing and payment of claims.

(m) PUBLIC INFORMATION-

(1) IN GENERAL- At the time of publication of interim final regulations under subsection (l), the Director shall publish, in newspapers of general circulation in New York City, a clear, concise, and easily understandable explanation, in English and Spanish, of--

(A) the rights conferred under this section; and

(B) the procedural and other requirements of the regulations promulgated under subsection (l).

(2) DISSEMINATION THROUGH OTHER MEDIA- The Director shall disseminate the explanation published under paragraph (1) through brochures, pamphlets, radio, television, and such other media as the Director determines to be likely to reach prospective claimants.

(n) COORDINATION- In carrying out this section, the Director shall coordinate with the Administrator of the Small Business Administration, other Federal agencies, and State and local agencies, as the Director determines to be necessary--

(1) to ensure the efficient administration of the claims process; and

(2) to provide for local concerns.

(o) APPLICABILITY OF DEBT COLLECTION REQUIREMENTS- Section 3716 of title 31, United States Code, shall not apply to any payment on a claim.

SEC. 5. RELATIONSHIP TO FEDERAL ENTITLEMENT PROGRAMS.

Nothing in this Act affects any right of an injured person that submits a claim to submit a request for benefits under any Federal entitlement program.

SEC. 6. REPORTS AND AUDITS.

(a) REPORTS- Not later than 1 year after the date of promulgation of interim final regulations under section 4(l) and annually thereafter, the Director shall submit to Congress a report that describes the claims submitted under section 4(b) during the year preceding the date of submission of the report, including, with respect to each claim--

(1) the amount claimed;

(2) a brief description of the nature of the claim; and

(3) the status or disposition of the claim, including the amount of any payment on the claim.

(b) AUDITS- The Comptroller General shall--

(1) conduct an annual audit of the payment of all claims submitted under section 4(b); and

(2) not later than 1 year after the date of enactment of this Act and annually thereafter, report to Congress on the results of the audit.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

(a) IN GENERAL- There is authorized to be appropriated to carry out this Act $2,000,000,000, to remain available until expended.

(b) FEMA FUNDS- None of the funds made available to the Federal Emergency Management Agency for the administration of disaster relief shall be used to carry out this Act.

SEC. 8. TERMINATION OF AUTHORITY.

The authority provided by this Act terminates effective 42 months after the date of enactment of this Act.

END