2000
<PRE>[DOCID: f:h3272ih.txt]






107th CONGRESS
  1st Session
                                H. R. 3272

  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 HOUSE OF REPRESENTATIVES

                            November 9, 2001

Mr. Nadler (for himself and Mr. Hinchey) introduced the following bill; 
 which was referred to the Committee on the Judiciary, and in addition 
to the Committee on Transportation and Infrastructure, for a period to 
      be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 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. 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, the following definitions apply:
            (1) Affected area.--The term ``affected area'' means the 
        area south of Canal Street in the borough of Manhattan, New 
        York City, New York.
            (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.
    (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. 5. COMPE
2000
NSATION 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 (h), 
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);
                    (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.--
                    (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.--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.
            (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.
                    (C) 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.
                    (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 noti
1b41
fied 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) 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).
    (i) Public Information.--At the time of publication of interim 
final regulations under subsection (h), 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 (h).
    (j) 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.
    (k) 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.
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