Senate Action Postponed On Asbestos Bill

By Matt Brady and Arthur D. Postal, Washington Bureau

NU Online News Service, April 28, 4:31 p.m. EDT? The Senate Judiciary Committee postponed its work on legislation that would create a $140 billion trust fund to handle asbestos claims until May 12.[@@]

The committee acted on 18 of 82 amendments before recessing until May 12 after some members took note of the fact that committees cannot work on legislation while the Senate itself is in session.

The bill has seven declared supporters ? five Republicans and two Democrats ? on an 18-member Judiciary Committee that has 10 Republicans and eight Democrats.

One of the Democrats is Sen. Dianne Feinstein, D-Calif. But Sen. Feinstein made clear that her support is contingent on the committee passing an amendment that would ensure that the most critically ill victims would get their money up front, that is, 50 percent the first year and 50 percent the second.

Given the close vote expected on the bill, that vote could be key to final passage. It will be a close vote because Republicans are concerned that a rush of claims in the first years of the trust fund will exhaust the money, resulting in all claims becoming the subject of disputed civil cases.

Republican Sen. Jon Kyl of Arizona said his office was starting to hear from companies who feared the requirements to pay into the fund could force them into bankruptcy. He urged the committee to take its time, saying many people were just coming to grips with the details of the 300-page bill.

Earlier, Sen. Specter indicated the committee would work through the night to complete work on the bill so that it would be ready for floor action when Congress from a one-week recess on May 9. "I want to be in a position to report this bill out so the majority leader has it when we return from recess," Sen. Specter said.

Presumably, the objections were raised by those who hope that a delay would allow those who opposed the bill to win enough support to bottle it up in committee despite the fact it has bipartisan support.

And there is no shortage of opposition, including large portions of the insurance industry, especially representatives of the approximately 20 insurers and reinsurers who would shoulder most of the $46 billion levy the legislation would force the industry to pony up over 27.5 years.

One of the opponents' concerns is that the latest versions of the bill require the industry to make most of its contributions to the fund up front.

But, at the same time, there remains a provision which allows all claims to leak back into the court system nine months after the fund runs out of money. Moreover, all remaining claims would go back into the tort system after the 27.5 years, meaning insurer and defendant contributions don't buy them finality.

Another provision worrying insurers bars liens against victims who, while having their claim adjudicated, received money from workers' compensation funds underwritten by insurers and defendants.

Republicans on the committee, sympathetic to the defendants and insurers, may as a result decide to reject the amendment Sen. Feinstein regards as a deal breaker when the panel resumes action.

The legislation creates an alternative claims processing system for workers who can prove they have been exposed to asbestos. It sets up seven categories for claims, with those suffering from mesothelioma, the most severe ailment, each getting $1.1 million from the fund. Accelerated handling of those claims is mandated by the bill.

The fund would be administered by the Department of Labor.

One of the amendments defeated during today's action was one that would restore the ability of those exposed to asbestos and suffering from lung cancer but displaying no symptoms of asbestosis to receive compensation. Deletion of that language was a key demand of conservative Republicans to win their support of the bill.

The panel voted 12-5 to reject that amendment, offered by Sen. Edward Kennedy, D-Mass.

But the panel did accept an amendment by Sen. Richard Durbin, D-Ill., that would treat claims by families of asbestos victims with severe illness the same way it treats claims for the injured party even if that party dies while the claim is being processed.

Sen. Kyl, voicing the concerns of the defendants and insurers, said during the committee action that, "I am not one in that contingent that believes in no circumstances we should have a bill." However, he said that the bill still had too many unresolved issues, "Daily, we are discovering new things that we need to modify."

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Senate Action Postponed On Asbestos Bill

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