The Avalon Project : S 1624 World Trade Center Attack Claims Act (Reported in the Senate); December 7, 2001

September 11, 2001 : Attack on America
S 1624 World Trade Center Attack Claims Act (Reported in the Senate); December 7, 2001

S 1624 RS

Calendar No. 269

107th CONGRESS

1st Session

S. 1624

[Report No. 107-116]

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

December 7, 2001

Reported by Mr. JEFFORDS, with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]

--------------------------------------------------------------------------------

A BILL

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

[Struck out->] SECTION 1. SHORT TITLE. [<-Struck out]

[Struck out->] This Act may be cited as the `World Trade Center Attack Claims Act'. [<-Struck out]

[Struck out->] SEC. 2. DEFINITIONS. [<-Struck out]

[Struck out->] In this Act: [<-Struck out]

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

[Struck out->] (A) the area located south of Chambers Street and west of Broadway; and [<-Struck out]

[Struck out->] (B) the area located south of Worth Street and east of Broadway. [<-Struck out]

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

[Struck out->] (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. [<-Struck out]

[Struck out->] (4) CLAIMANT- The term `claimant' means an injured person that submits a claim under section 4(b). [<-Struck out]

[Struck out->] (5) DIRECTOR- The term `Director' means-- [<-Struck out]

[Struck out->] (A) the Director of the Federal Emergency Management Agency; or [<-Struck out]

[Struck out->] (B) if an Independent Claims Manager is appointed under section 3(d)(4), the Independent Claims Manager. [<-Struck out]

[Struck out->] (6) INJURED PERSON- [<-Struck out]

[Struck out->] (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-- [<-Struck out]

[Struck out->] (i) suffered injury as a result of the attack; and [<-Struck out]

[Struck out->] (ii) resides or maintains a place of business in the affected area. [<-Struck out]

[Struck out->] (B) EXCLUSIONS- The term `injured person' does not include-- [<-Struck out]

[Struck out->] (i) a lender that holds a mortgage on or security interest in real or personal property affected by the attack; or [<-Struck out]

[Struck out->] (ii) a person that holds a lien on real or personal property affected by the attack. [<-Struck out]

[Struck out->] (7) OFFICE- The term `Office' means the Office of World Trade Center Attack Claims established by section 3. [<-Struck out]

[Struck out->] SEC. 3. OFFICE OF WORLD TRADE CENTER ATTACK CLAIMS. [<-Struck out]

[Struck out->] (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'. [<-Struck out]

[Struck out->] (b) PURPOSE- The Office shall receive, process, and pay claims in accordance with section 4. [<-Struck out]

[Struck out->] (c) FUNDING- The Office-- [<-Struck out]

[Struck out->] (1) shall be funded from funds made available under this Act; and [<-Struck out]

[Struck out->] (2) may reimburse any other Federal agency for provision of assistance in the receipt and processing of claims. [<-Struck out]

[Struck out->] (d) PERSONNEL- [<-Struck out]

[Struck out->] (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. [<-Struck out]

[Struck out->] (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. [<-Struck out]

[Struck out->] (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. [<-Struck out]

[Struck out->] (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. [<-Struck out]

[Struck out->] SEC. 4. COMPENSATION FOR VICTIMS OF THE ATTACK. [<-Struck out]

[Struck out->] (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). [<-Struck out]

[Struck out->] (b) SUBMISSION OF CLAIMS- [<-Struck out]

[Struck out->] (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. [<-Struck out]

[Struck out->] (2) STATEMENT OF USE OF PAYMENT- [<-Struck out]

[Struck out->] (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. [<-Struck out]

[Struck out->] (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. [<-Struck out]

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

[Struck out->] (d) AMOUNT OF PAYMENT- [<-Struck out]

[Struck out->] (1) IN GENERAL- Any payment on a claim by an injured person-- [<-Struck out]

[Struck out->] (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; [<-Struck out]

[Struck out->] (B) shall be subject to subsection (e)(1)(C); [<-Struck out]

[Struck out->] (C) shall not include-- [<-Struck out]

[Struck out->] (i) interest on the amount of the payment before the date of settlement or payment of a claim; or [<-Struck out]

[Struck out->] (ii) punitive damages or any other form of noncompensatory damages; and [<-Struck out]

[Struck out->] (D) shall not exceed $500,000, except in the case of a claim for which the Director determines that a greater amount is appropriate. [<-Struck out]

[Struck out->] (2) TYPES OF INJURY- [<-Struck out]

[Struck out->] IN GENERAL- Under paragraph (1), subject to subparagraph (B), an injured person may receive payment for-- [<-Struck out]

[Struck out->] (i) an uninsured or underinsured property loss; [<-Struck out]

[Struck out->] (ii) damage to or destruction of physical infrastructure; [<-Struck out]

[Struck out->] (iii) damage to or destruction of tangible assets or inventory; [<-Struck out]

[Struck out->] (iv) a business interruption loss; [<-Struck out]

[Struck out->] (v) overhead costs; [<-Struck out]

[Struck out->] (vi) employee wages for work not performed; [<-Struck out]

[Struck out->] (vii) an insurance deductible; [<-Struck out]

[Struck out->] (viii) a temporary living or relocation expense; and [<-Struck out]

[Struck out->] (ix) debris removal and other cleanup costs; and [<-Struck out]

[Struck out->] (x) any other type of injury that the Director determines to be appropriate. [<-Struck out]

[Struck out->] (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-- [<-Struck out]

[Struck out->] (i) disruption in power; [<-Struck out]

[Struck out->] (ii) disruption in telecommunications capacity; [<-Struck out]

[Struck out->] (iii) damage to or destruction of physical infrastructure; or [<-Struck out]

[Struck out->] (iv) disruption in physical access. [<-Struck out]

[Struck out->] (3) BURDEN OF PROOF- [<-Struck out]

[Struck out->] (A) IN GENERAL- Subject to subparagraph (B), a claimant shall have the burden of demonstrating injury suffered by the claimant. [<-Struck out]

[Struck out->] (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. [<-Struck out]

[Struck out->] (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. [<-Struck out]

[Struck out->] (e) PAYMENT OF CLAIMS- [<-Struck out]

[Struck out->] (1) DETERMINATION AND PAYMENT OF AMOUNT- [<-Struck out]

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

[Struck out->] (i) determine the amount, if any, to be paid for the claim; and [<-Struck out]

[Struck out->] (ii) pay the amount. [<-Struck out]

[Struck out->] (B) PARAMETERS OF DETERMINATION- In determining and paying a claim, the Director shall determine only-- [<-Struck out]

[Struck out->] (i) whether the claimant is an injured person; [<-Struck out]

[Struck out->] (ii) whether the injuries that are the subject of the claim resulted from the attack; [<-Struck out]

[Struck out->] (iii) the amount, if any, to be paid under this section; and [<-Struck out]

[Struck out->] (iv) the person or persons entitled to receive the amount. [<-Struck out]

[Struck out->] (C) INSURANCE AND OTHER BENEFITS- [<-Struck out]

[Struck out->] (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-- [<-Struck out]

[Struck out->] (I) payments on insurance policies; [<-Struck out]

[Struck out->] (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 [<-Struck out]

[Struck out->] (III) financial assistance provided by a charitable or other nonprofit, nongovernmental organization. [<-Struck out]

[Struck out->] (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. [<-Struck out]

[Struck out->] (2) ADVANCE AND PARTIAL PAYMENTS- [<-Struck out]

[Struck out->] (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. [<-Struck out]

[Struck out->] (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-- [<-Struck out]

[Struck out->] (i) seek judicial review under subsection (j); and [<-Struck out]

[Struck out->] (ii) retain any partial payment that the claimant received, unless the Director determines that the claimant-- [<-Struck out]

[Struck out->] (I) was not eligible to receive the partial payment; or [<-Struck out]

[Struck out->] (II) fraudulently obtained the partial payment. [<-Struck out]

[Struck out->] (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-- [<-Struck out]

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

[Struck out->] (2) subject to subsection (h), be final and conclusive on the United States; and [<-Struck out]

[Struck out->] (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. [<-Struck out]

[Struck out->] (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). [<-Struck out]

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

[Struck out->] (1) was improperly paid to the claimant as a result of-- [<-Struck out]

[Struck out->] (A) fraud or misrepresentation on the part of the claimant or a representative of the claimant; [<-Struck out]

[Struck out->] (B) a material mistake on the part of the United States; [<-Struck out]

[Struck out->] (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 [<-Struck out]

[Struck out->] (D) the failure of the claimant to cooperate in an audit; or [<-Struck out]

[Struck out->] (2) is used by the claimant in violation of subsection (g). [<-Struck out]

[Struck out->] (i) ARBITRATION- [<-Struck out]

[Struck out->] (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. [<-Struck out]

[Struck out->] (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. [<-Struck out]

[Struck out->] (3) BINDING EFFECT- An election by an injured person to settle a claim through arbitration under this subsection shall-- [<-Struck out]

[Struck out->] (A) be binding; and [<-Struck out]

[Struck out->] (B) preclude any exercise by the injured person of the right to judicial review of a claim under subsection (j). [<-Struck out]

[Struck out->] (j) JUDICIAL REVIEW- [<-Struck out]

[Struck out->] (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. [<-Struck out]

[Struck out->] (2) RECORD- The court shall hear a civil action under paragraph (1) on the record made before the Director. [<-Struck out]

[Struck out->] (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. [<-Struck out]

[Struck out->] (k) ATTORNEY'S AND AGENT'S FEES- [<-Struck out]

[Struck out->] (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. [<-Struck out]

[Struck out->] (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. [<-Struck out]

[Struck out->] (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. [<-Struck out]

[Struck out->] (m) PUBLIC INFORMATION- [<-Struck out]

[Struck out->] (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-- [<-Struck out]

[Struck out->] (A) the rights conferred under this section; and [<-Struck out]

[Struck out->] (B) the procedural and other requirements of the regulations promulgated under subsection (l). [<-Struck out]

[Struck out->] (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. [<-Struck out]

[Struck out->] (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-- [<-Struck out]

[Struck out->] (1) to ensure the efficient administration of the claims process; and [<-Struck out]

[Struck out->] (2) to provide for local concerns. [<-Struck out]

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

[Struck out->] SEC. 5. RELATIONSHIP TO FEDERAL ENTITLEMENT PROGRAMS. [<-Struck out]

[Struck out->] 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. [<-Struck out]

[Struck out->] SEC. 6. REPORTS AND AUDITS. [<-Struck out]

[Struck out->] (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-- [<-Struck out]

[Struck out->] (1) the amount claimed; [<-Struck out]

[Struck out->] (2) a brief description of the nature of the claim; and [<-Struck out]

[Struck out->] (3) the status or disposition of the claim, including the amount of any payment on the claim. [<-Struck out]

[Struck out->] (b) AUDITS- The Comptroller General shall-- [<-Struck out]

[Struck out->] (1) conduct an annual audit of the payment of all claims submitted under section 4(b); and [<-Struck out]

[Struck out->] (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. [<-Struck out]

[Struck out->] SEC. 7. AUTHORIZATION OF APPROPRIATIONS. [<-Struck out]

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

[Struck out->] (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. [<-Struck out]

[Struck out->] SEC. 8. TERMINATION OF AUTHORITY. [<-Struck out]

[Struck out->] The authority provided by this Act terminates effective 42 months after the date of enactment of this Act. [<-Struck out]

SECTION 1. SHORT TITLE.

This Act may be cited as the `World Trade Center Attack Claims Act'.

SEC. 2. FINDINGS AND PURPOSES.

(a) FINDINGS- Congress finds that--

(1) on September 11, 2001, an unprecedented terrorist attack was perpetrated against the United States on American soil;

(2) 1 of the targets of that terrorist attack was the World Trade Center in New York City;

(3) the attack on the World Trade Center resulted in the loss of thousands of lives, and the damage or destruction of a 16-acre area in lower Manhattan, including thousands of homes and businesses;

(4) more than 1,000,000 tons of rubble must be removed from the attack site;

(5) nearly 25,000,000 square feet of office space, equivalent to 20 percent of all office space in downtown New York, was damaged or destroyed by the attack;

(6) approximately 850 businesses and over 125,000 workers were physically displaced as a result of the attack;

(7) more than an additional 9,000 businesses employing over 145,000 people have been affected as a result of restrictions on access resulting from the attack;

(8) many of those businesses are on the verge of bankruptcy because the businesses remain unable to gain access to their property or are temporarily unable to receive foot or vehicular traffic;

(9) it is estimated that the attack will cost New York City and businesses in the city over $105,000,000,000 in financial losses over the next 2 years; and

(10) certain victims of the attack are in need of compensation for certain business and residential losses resulting directly from the attack.

(b) PURPOSES- The purposes of this Act are--

(1) to compensate certain victims of the terrorist attack on the World Trade Center in New York City for certain business and residential losses resulting directly from the attack;

(2) to provide for the expeditious consideration and payment of claims for those losses; and

(3) to assist victims of the attack to continue, repair, replace, start, establish, or locate a business or residence in New York City that was located in the affected area before September 11, 2001.

SEC. 3. DEFINITIONS.

In this Act:

(1) AFFECTED AREA- The term `affected area' means the area in lower Manhattan, New York City, that is comprised of the area located on or south of Canal Street, on or south of East Broadway (east of its intersection with Canal Street), or on or south of Grand Street (east of its intersection with East 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 5(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 4(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 4.

SEC. 4. 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 5.

(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. 5. COMPENSATION FOR VICTIMS OF THE ATTACK.

(a) IN GENERAL- Each injured person may 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- Not later than 2 years after the date on which interim final regulations are promulgated under subsection (i), 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.

(c) INVESTIGATION OF CLAIMS- The Director shall investigate, adjust, grant, deny, settle, or compromise 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)(D);

(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-

(A) RESIDENTIAL LOSS- Under paragraph (1), an injured person may receive payment for a residential loss consisting of 1 or more of the following:

(i) An uninsured or underinsured property loss.

(ii) Damage to or destruction of physical infrastructure.

(iii) An insurance deductible.

(iv) A temporary living or relocation expense.

(v) Debris removal and other cleanup costs.

(vi) Any other type of related injury that the Director determines to be appropriate.

(B) BUSINESS LOSS-

(i) IN GENERAL- Under paragraph (1), an injured person may receive payment for a business loss consisting of 1 or more of the following:

(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 relocation expense.

(IX) Debris removal and other cleanup costs.

(X) Any other type of injury that the Director determines to be appropriate.

(ii) LIMITATION ON BUSINESS LOSS- An injured person may receive payment for a business loss under clause (i) only if the injured person has experienced, as a result of the attack, with respect to a business facility of the injured person--

(I) disruption in power;

(II) disruption in telecommunications capacity;

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

(IV) disruption in physical access by employees or customers to the business facility of the injured person.

(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.

(e) PAYMENT OF CLAIMS-

(1) DETERMINATION AND PAYMENT OF AMOUNT-

(A) IN GENERAL- To the maximum extent practicable, 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) PRIORITY- The Director may establish priorities for processing and paying claims based on--

(i) an assessment of the needs of the claimants; and

(ii) any other criteria that the Director determines to be appropriate.

(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.

(D) 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; and

(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.

(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 OR PARTIAL PAYMENTS- At the request of a claimant, the Director may make 1 or more advance or partial payments before the final settlement of a claim.

(f) RECOVERY OF FUNDS IMPROPERLY PAID OR MISUSED- The United States may recover any portion of a payment on a claim that was improperly paid to the claimant as a result of--

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

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

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

(4) the failure of the claimant to cooperate in an audit.

(g) APPEALS OF DECISIONS-

(1) RIGHT OF APPEAL- A claimant may appeal a decision concerning payment of a claim by filing, not later than 60 days after the date on which the claimant is notified that the claim of the claimant will or will not be paid, a notice of appeal--

(A) in the case of a decision on a claim relating to a business loss, with the Administrator of the Small Business Administration; and

(B) in the case of a decision on a claim relating to a residential loss, with the Director.

(2) PERIOD FOR DECISION- A decision concerning an appeal under paragraph (1) shall be rendered not later than 90 days after the date on which the notice of appeal is received.

(h) 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.

(i) REGULATIONS- Notwithstanding any other provision of law, not later than 45 days after the date of enactment of this Act--

(1) the Director shall promulgate and publish in the Federal Register interim final regulations for the processing and payment of claims; and

(2) the Director and the Administrator of the Small Business Administration shall jointly promulgate and publish in the Federal Register procedures under which a dispute concerning payment of a claim may be settled through an appeals process described in subsection (g).

(j) PUBLIC INFORMATION- At the time of publication of interim final regulations under subsection (i), the Director shall disseminate, through brochures, pamphlets, radio, television, the print news media, and such other media as the Director determines to be likely to reach prospective claimants, a clear, concise, and easily understandable explanation, in English, Spanish, and any other language that the Director determines to be appropriate, of--

(1) the rights conferred under this section; and

(2) the procedural and other requirements of the regulations promulgated under subsection (i).

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

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

(2) to provide for local concerns.

(l) APPLICABILITY OF DEBT COLLECTION REQUIREMENTS-

(1) IN GENERAL- Section 3716 of title 31, United States Code, shall not preclude any payment on a claim.

(2) ASSIGNMENT AND EXEMPTION FROM CLAIMS OF CREDITORS-

(A) ASSIGNMENT- No assignment, release, or commutation of a payment due or payable under this section shall be valid.

(B) EXEMPTION-

(i) IN GENERAL- A payment under this section shall be exempt from all claims of creditors and from levy, execution, attachment, or other remedy for recovery or collection of a debt.

(ii) NONWAIVABLE EXEMPTION- The exemption provided by clause (i) may not be waived.

(3) EXCEPTION- Notwithstanding paragraph (2), the Director may--

(A) require the repayment, using a payment under this section, of any disaster loan made by the Small Business Administration to address injury suffered as a result of the attack; and

(B) use the remedies provided by subchapter II of chapter 37 of title 31, United States Code, in collecting debts due to the Federal Government that arise from this Act.

SEC. 6. ACCEPTANCE OF SERVICES OF OTHER AGENCIES AND VOLUNTEERS; GIFTS.

In carrying out this Act, the Director may--

(1) accept and use the services or facilities of any State or local government, or of any agency, office, or employee of any State or local government, with the consent of the government;

(2) use such voluntary and uncompensated services by individuals or organizations as may be needed; and

(3) accept gifts of supplies, equipment, and facilities to be used in carrying out this Act.

SEC. 7. RELATIONSHIP TO FEDERAL ENTITLEMENT PROGRAMS.

(a) REQUESTS FOR BENEFITS- 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.

(b) CONSIDERATION OF PAYMENTS AS RESOURCES- A payment on a claim received by an injured person under section 5 shall not be taken into account in determining the assets or resources of any individual or household under any Federal program or federally assisted program that provides financial aid, assistance, or benefits based on need, including--

(1) the food stamp program under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.); and

(2) any program established under the Social Security Act (42 U.S.C. 301 et seq.).

SEC. 8. REPORTS AND AUDITS.

(a) REPORTS- Not later than 1 year after the date of promulgation of interim final regulations under section 5(i) and annually thereafter, the Director shall submit to Congress a report that describes the claims submitted under section 5(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 5(b); and

(2) not later than 120 days after the date on which the Director submits to Congress the initial report required by subsection (a) and annually thereafter, submit to Congress a report on the results of the audit.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

(a) IN GENERAL- There are authorized to be appropriated to carry out this Act--

(1) for administration by the Office of the compensation process $100,000,000; and

(2) for payment of claims $1,900,000,000.

(b) AVAILABILITY- Amounts made available under subsection (a) shall remain available until expended.

(c) 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. 10. TERMINATION OF AUTHORITY.

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