Washington–The Bush administration voiced support today for the legislation being debated in the Senate that would create an asbestos injury fund.
The administration's position was made known in the wake of last night's 98-1 vote to approve debate on the measure, a tally signaling it has gained enough momentum to have a good chance of passing the Senate, perhaps as early as late next week.
The Senate has set aside two weeks to debate the bill, and key votes on the bill could come as early as Monday of next week.
“The administration supports Senate passage of S. 852,” said a White House statement. “Asbestos-related litigation has clogged the courts, depriving those with injuries of a meaningful remedy and resulting in the loss of tens of thousands of jobs, the bankruptcy of at least 70 companies, and costs to the U.S. economy estimated at over $300 billion.”
The statement added that although “the administration has serious concerns about certain provisions of the bill, the administration looks forward to working with Congress in order to strengthen and improve this important legislation before it is presented to the president for his signature.”
The legislation would create a $140 billion trust fund to pay for claims resulting from exposure to asbestos in the workplace. The bill, known as the Fairness in Asbestos Injury Resolution Act (FAIR Act), calls for a special administration unit to be established under the Department of Labor to handle asbestos claims over the next 27.5 years. Insurers would pay $45 billion of that total.
Most insurers and their trade groups oppose the bill. One of the reasons is that the insurer contribution would be front-loaded, with insurers paying $20.6 billion of their total contribution in the first five years of the fund's existence.
Another reason many insurers oppose it is that if the fund runs out of money, the claims would revert to the court system.
One of the reasons it is supporting the bill, the administration said in its statement of position, is that “trial lawyers now are targeting companies once considered too small to sue and companies not directly involved with the manufacturing of asbestos.”
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