Washington–An influential Democratic senator urged the Senate leadership today to delay consideration of asbestos injury fund legislation now planned for early February because the votes for passage may not be there.

The letter by Sen. Mark Pryor, D-Arkansas, seems to articulate the insurance industry consensus that the legislation, S. 852, does not have enough support to win passage.

The industry view is that Senate Majority Leader William Frist, R-Tenn., will bring the bill to the floor for a vote next month–as he has promised to do many times–but that the bill will be rejected.

Analysts at Washington Analysis, which advises institutional investors on potential congressional action, have also repeatedly stated that the votes aren't there for passage.

In his letter to Sen. Frist and Senate Minority Leader Harry Reid, D-Nevada, Sen. Pryor said that a resolution “of this country's asbestos health and litigation problem is long overdue” and creation of a trust fund to do so “may be the most effective way of addressing it.”

“However, I believe that a number of members continue to have concerns and questions about the fund and that such consideration may be premature,” Sen. Pryor added.

The bill, sponsored by Sen. Arlen Specter, R-Pa., chairman of the Senate Judiciary Committee, would create an alternative claims-handling system for workers injured by exposure to asbestos in the workplace.

The claims would be paid by establishing a $140 billion trust fund through contributions by defendants, insurance companies and money contained in existing trust funds.

But, Sen. Pryor said, “I am concerned about the adequacy of the funding as provided in the bill.

“In light of the recent Government Accountability Office report raising prior funding problems with compensation funds such as this one, and the warning from the Congressional Budget Office that similar trust funds have historically underestimated claims, my concerns are heightened,” Sen. Pryor said.

Additionally, he said, “I understand that a number of members from both sides of the aisle have raised a variety of other concerns regarding the proposed legislation.”

Special Reports /

Letter Dims Chance Of Asbestos Bill Passage

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