Asbestos legislation heads to Senate floor
WASHINGTON – Legislation that would create a federal trust fund to compensate victims of asbestos exposure will come to the Senate floor this week after months of delay, although the bill’s prospects remain uncertain.
The legislation would move asbestos cases out of the court system and create a $140-billion fund to compensate people sickened by asbestos. A new federal office would oversee payments ranging from $25,000 to $1.1 million.
Asbestos manufacturers and insurance companies would pay into the fund in exchange for relief from further liability. The measure would limit attorneys’ fees, in most cases, to 5 percent of an award.
Critics say that the fund is far less than what’s needed and that the bill could leave many sick people with nothing while releasing companies that used asbestos from future claims.
The Senate Judiciary Committee cleared the bill last summer, but stubborn concerns about the legislation – and a crowded Senate schedule – kept it from being debated on the floor.
If the bill passes the Senate, it’s unclear whether it will be debated in the House, where there are several alternative proposals.
Supporters of the legislation say federal intervention is the only way to stop the tide of bankruptcies, free up a clogged court system and speed financial help to the sick. They note that the Supreme Court has called on Congress to take action.
Opponents argue that the bill is essentially a bailout for companies and will create a system that’s unfair to victims. They say $140 billion is insufficient to cover the damages, and they worry that taxpayers could ultimately pick up the tab.
Last week, a group of advocates for asbestos victims sent a letter decrying the bill to Senate leaders.
The letter outlined the group’s concerns, including fears that people exposed to asbestos recently, or not in the course of their jobs – in the aftermath of the Sept. 11 terrorist attacks, for example, or after Hurricane Katrina – would be locked out by the complicated criteria laid out in the bill.
“We do not want this proposed government policy forced upon us,” the letter stated. “We believe the program will fail to treat victims fairly, while benefiting the very companies that caused the problem.”
The National Association of Manufacturers, an industry group, has said the bill is imperfect – even as its lobbyists have hit Capitol Hill to push for the legislation. Hank Cox, a spokesman for the group, said the organization’s intent was to encourage a compromise all sides could live with.
“Our stated goal is just to keep the process going, and get a bill out there,” he said. “We don’t have a consensus on exactly what the bill should provide, except that everyone agrees that a legislative solution is long overdue.”
Despite concerns about the legislation, President Bush called for the Senate to pass it during an appearance in Minnesota last week, saying the bill would help add “balance in the legal system.”
“It’s time to send a clear message to investors and markets and employees that we’ve got to have a legal system in regards to asbestos that’s fair to those who have actually been harmed, and reasonable for those who need to pay,” Bush said.