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H.R. 1024 (ih) To establish requirements for the cancellation of automobile insurance policies. ...


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                                                       Calendar No. 707
105th CONGRESS
  2d Session
                                H. R. 1023


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 20, 1998

                                Received

                             June 16, 1998

 Read twice and referred to the Committee on Labor and Human Resources

              October 7 (legislative day, October 2), 1998

              Reported by Mr. Jeffords, without amendment

_______________________________________________________________________

                                 AN ACT


 
 To provide for compassionate payments with regard to individuals with 
  blood-clotting disorders, such as hemophilia, who contracted human 
 immunodeficiency virus due to contaminated antihemophilic factor, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Ricky Ray 
Hemophilia Relief Fund Act of 1998''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                    TITLE I--HEMOPHILIA RELIEF FUND

Sec. 101. Ricky Ray Hemophilia Relief Fund.
Sec. 102. Compassionate payment relating to individuals with blood-
                            clotting disorders and HIV.
Sec. 103. Determination and payment.
Sec. 104. Limitation on transfer of rights and number of petitions.
Sec. 105. Time limitation.
Sec. 106. Certain claims not affected by payment.
Sec. 107. Limitation on agent and attorney fees.
Sec. 108. Definitions.
     TITLE II--TREATMENT OF CERTAIN PRIVATE SETTLEMENT PAYMENTS IN 
  HEMOPHILIA-CLOTTING-FACTOR SUIT UNDER THE MEDICAID AND SSI PROGRAMS

Sec. 201. Treatment of certain private settlement payments in 
                            hemophilia-clotting-factor suit under the 
                            Medicaid and SSI programs.

                    TITLE I--HEMOPHILIA RELIEF FUND

SEC. 101. RICKY RAY HEMOPHILIA RELIEF FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a trust fund to be known as the ``Ricky Ray Hemophilia 
Relief Fund'', which shall be administered by the Secretary of the 
Treasury.
    (b) Investment of Amounts in Fund.--Amounts in the Fund shall be 
invested in accordance with section 9702 of title 31, United States 
Code, and any interest on and proceeds from any such investment shall 
be credited to and become part of the Fund.
    (c) Availability of Fund.--Amounts in the Fund shall be available 
only for disbursement by the Secretary of Health and Human Services 
under section 103.
    (d) Termination.--The Fund shall terminate upon the expiration of 
the 5-year period beginning on the date of the enactment of this Act. 
If all of the amounts in the Fund have not been expended by the end of 
the 5-year period, investments of amounts in the Fund shall be 
liquidated, the receipts of such liquidation shall be deposited in the 
Fund, and all funds remaining in the Fund shall be deposited in the 
miscellaneous receipts account in the Treasury of the United States.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to the Fund to carry out this title $750,000,000.

SEC. 102. COMPASSIONATE PAYMENT RELATING TO INDIVIDUALS WITH BLOOD-
              CLOTTING DISORDERS AND HIV.

    (a) In General.--If the conditions described in subsection (b) are 
met and if there are sufficient amounts in the Fund to make each 
payment, the Secretary shall make a single payment of $100,000 from the 
Fund to any individual who has an HIV infection and who is described in 
one of the following paragraphs:
            (1) The individual has any form of blood-clotting disorder, 
        such as hemophilia, and was treated with antihemophilic factor 
        at any time during the period beginning on July 1, 1982, and 
        ending on December 31, 1987.
            (2) The individual--
                    (A) is the lawful spouse of an individual described 
                in paragraph (1); or
                    (B) is the former lawful spouse of an individual 
                described in paragraph (1) and was the lawful spouse of 
                the individual at any time after a date, within the 
                period described in such subparagraph, on which the 
                individual was treated as described in such paragraph 
                and through medical documentation can assert reasonable 
                certainty of transmission of HIV from individual 
                described in paragraph (1).
            (3) The individual acquired the HIV infection through 
        perinatal transmission from a parent who is an individual 
        described in paragraph (1) or (2).
    (b) Conditions.--The conditions described in this subsection are, 
with respect to an individual, as follows:
            (1) Submission of medical documentation of hiv infection.--
        The individual submits to the Secretary written medical 
        documentation that the individual has an HIV infection.
            (2) Petition.--A petition for the payment is filed with the 
        Secretary by or on behalf of the individual.
            (3) Determination.--The Secretary determines, in accordance 
        with section 103(b), that the petition meets the requirements 
        of this title.

SEC. 103. DETERMINATION AND PAYMENT.

    (a) Establishment of Filing Procedures.--The Secretary of Health 
and Human Services shall establish procedures under which individuals 
may submit petitions for payment under this title. The procedures shall 
include a requirement that each petition filed under this Act include 
written medical documentation that the relevant individual described in 
section 102(a)(1) has (or had) a blood-clotting disorder, such as 
hemophilia, and was treated as described in such section.
    (b) Determination.--For each petition filed under this title, the 
Secretary shall determine whether the petition meets the requirements 
of this title.
    (c) Payment.--
            (1) In general.--To the extent there are sufficient amounts 
        in the Fund to cover each payment, the Secretary shall pay, 
        from the Fund, each petition that the Secretary determines 
        meets the requirements of this title in the order received.
            (2) Payments in case of deceased individuals.--
                    (A) In general.--In the case of an individual 
                referred to in section 102(a) who is deceased at the 
                time that payment is made under this section on a 
                petition filed by or on behalf of the individual, the 
                payment shall be made as follows:
                            (i) If the individual is survived by a 
                        spouse who is living at the time of payment, 
                        the payment shall be made to such surviving 
                        spouse.
                            (ii) If the individual is not survived by a 
                        spouse described in clause (i), the payment 
                        shall be made in equal shares to all children 
                        of the individual who are living at the time of 
                        the payment.
                            (iii) If the individual is not survived by 
                        a person described in clause (i) or (ii), the 
                        payment shall be made in equal shares to the 
                        parents of the individual who are living at the 
                        time of payment.
                            (iv) If the individual is not survived by a 
                        person described in clause (i), (ii), or (iii), 
                        the payment shall revert back to the Fund.
                    (B) Filing of petition by survivor.--If an 
                individual eligible for payment under section 102(a) 
                dies before filing a petition under this title, a 
                survivor of the individual may file a petition for 
                payment under this title on behalf of the individual if 
                the survivor may receive payment under subparagraph 
                (A).
                    (C) Definitions.--For purposes of this paragraph:
                            (i) The term ``spouse'' means an individual 
                        who was lawfully married to the relevant 
                        individual at the time of death.
                            (ii) The term ``child'' includes a 
                        recognized natural child, a stepchild who lived 
                        with the relevant individual in a regular 
                        parent-child relationship, and an adopted 
                        child.
                            (iii) The term ``parent'' includes fathers 
                        and mothers through adoption.
            (3) Timing of payment.--The Secretary may not make a 
        payment on a petition under this title before the expiration of 
        the 120-day period beginning on the date of the enactment of 
        this Act or after the expiration of the 5-year period beginning 
        on the date of the enactment of this Act.
    (d) Action on Petitions.--The Secretary shall complete the 
determination required by subsection (b) regarding a petition not later 
than 120 days after the date the petition is filed under this title.
    (e) Humanitarian Nature of Payment.--This Act does not create or 
admit any claim of or on behalf of the individual against the United 
States or against any officer, employee, or agent thereof acting within 
the scope of employment or agency that relate to an HIV infection 
arising from treatment with antihemophilic factor, at any time during 
the period beginning on July 1, 1982, and ending on December 31, 1987. 
A payment under this Act shall, however, when accepted by or on behalf 
of the individual, be in full satisfaction of all such claims by or on 
behalf of that individual.
    (f) Administrative Costs Not Paid From Fund.--No costs incurred by 
the Secretary in carrying out this title may be paid from the Fund or 
set off against, or otherwise deducted from, any payment made under 
subsection (c)(1).
    (g) Termination of Duties of Secretary.--The duties of the 
Secretary under this section shall cease when the Fund terminates.
    (h) Treatment of Payments Under Other Laws.--A payment under 
subsection (c)(1) to an individual--
            (1) shall be treated for purposes of the Internal Revenue 
        Code of 1986 as damages described in section 104(a)(2) of such 
        Code;
            (2) shall not be included as income or resources for 
        purposes of determining the eligibility of the individual to 
        receive benefits described in section 3803(c)(2)(C) of title 
        31, United States Code, or the amount of such benefits, and 
        such benefits shall not be secondary to, conditioned upon 
        reimbursement from, or subject to any reduction because of 
        receipt of, any such payment; and
            (3) shall not be treated as a third party payment or 
        payment in relation to a legal liability with respect to such 
        benefits and shall not be subject (whether by subrogation or 
        otherwise) to recovery, recoupment, reimbursement, or 
        collection with respect to such benefits (including the Federal 
        or State governments or any entity that provides such benefits 
        under a contract).
    (i) Regulatory Authority.--The Secretary may issue regulations 
necessary to carry out this title.
    (j) Time of Issuance of Procedures.--The Secretary shall, through 
the promulgation of appropriate regulations, guidelines, or otherwise, 
first establish the procedures to carry out this title not later than 
120 days after the date of the enactment of this Act.

SEC. 104. LIMITATION ON TRANSFER OF RIGHTS AND NUMBER OF PETITIONS.

    (a) Rights Not Assignable or Transferable.--Any right under this 
title shall not be assignable or transferable.
    (b) One Petition With Respect to Each Victim.--With respect to each 
individual described in paragraph (1), (2), or (3) of section 102(a), 
the Secretary may not make payment with respect to more than one 
petition filed in respect to an individual.

SEC. 105. TIME LIMITATION.

    The Secretary may not make any payment with respect to any petition 
filed under this title unless the petition is filed within 3 years 
after the date of the enactment of this Act.

SEC. 106. CERTAIN CLAIMS NOT AFFECTED BY PAYMENT.

    A payment made under section 103(c)(1) shall not be considered as 
any form of compensation, or reimbursement for a loss, for purposes of 
imposing liability on the individual receiving the payment, on the 
basis of such receipt, to repay any insurance carrier for insurance 
payments or to repay any person on account of worker's compensation 
payments. A payment under this title shall not affect any claim against 
an insurance carrier with respect to insurance or against any person 
with respect to worker's compensation.

SEC. 107. LIMITATION ON AGENT AND ATTORNEY FEES.

    Notwithstanding any contract, the representative of an individual 
may not receive, for services rendered in connection with the petition 
of an individual under this title, more than 5 percent of a payment 
made under this title on the petition. Any such representative who 
violates this section shall be fined not more than $50,000.

SEC. 108. DEFINITIONS.

    For purposes of this title:
            (1) The term ``AIDS'' means acquired immune deficiency 
        syndrome.
            (2) The term ``Fund'' means the Ricky Ray Hemophilia Relief 
        Fund.
            (3) The term ``HIV'' means human immunodeficiency virus.
            (4) Unless otherwise provided, the term ``Secretary'' means 
        Secretary of Health and Human Services.

 TITLE II--TREATMENT OF CERTAIN PAYMENTS IN HEMOPHILIA-CLOTTING-FACTOR 
                       SUIT UNDER THE SSI PROGRAM

SEC. 201. TREATMENT OF CERTAIN PAYMENTS IN HEMOPHILIA-CLOTTING-FACTOR 
              SUIT UNDER THE MEDICAID AND SSI PROGRAMS.

    (a) Private Payments.--
            (1) In general.--Notwithstanding any other provision of 
        law, the payments described in paragraph (2) shall not be 
        considered income or resources in determining eligibility for, 
        or the amount of--
                    (A) medical assistance under title XIX of the 
                Social Security Act; or
                    (B) supplemental security income benefits under 
                title XVI of the Social Security Act.
            (2) Private payments described.--The payments described in 
        this subsection are--
                    (A) payments made from any fund established 
                pursuant to a class settlement in the case of Susan 
                Walker v. Bayer Corporation, et al., 96-C-5024 (N.D. 
                Ill.); and
                    (B) payments made pursuant to a release of all 

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