Sen. Arlen Specter has scheduled a hearing for June 7 on his newly revised legislation aimed at limiting asbestos injury litigation by creating a special $140 million trust fund for claimants–nearly a third of it financed by insurers.
The Pennsylvania Republican demanded prompt Senate action on the modified measure, which replaces a version that hit opposition early in the year and failed to move. He scheduled the hearing before the Senate Judiciary Committee that he chairs.
Sen. Specter said his new bill will address concerns voiced by opponents by strengthening medical criteria for awards. It also adds an amendment that improves the process for contributions by both well-insured and financially-strapped defendant companies, he said.
Reflecting the long odds the bill still faces for passage, the American Insurance Association issued a statement saying that its leaders were evaluating the bill “and look forward to working with [Sen. Specter] and other interested parties to further address the many fundamental flaws in the original proposal.”
“Clearly, any trust fund must totally eliminate leakage of claims back into the tort system, and must contain fair but rigorous criteria for claimants to ensure that only those who are truly sick from asbestos exposure receive compensation from such a fund,” said AIA Senior Vice President Julie Rochman. “These and other issues must be fully resolved in order for the trust fund to be workable and receive our support.”
Discussing the bill that would set an alternative claims-handling process for asbestos suits, Sen. Specter said on the Senate floor, “I plan on moving ahead with this bill, and will do everything in my power to see that the Senate finishes its business on asbestos reform [this year].
“I urge the leader [Sen. Bill Frist, R-Tenn.] to schedule time for this important legislation in the coming months, and by introducing this bill today I am hopeful that we make a first big stride in that direction,” he added.
“The time is now for asbestos reform, and any further delay by this body will only prolong the suffering of asbestos victims, companies and their employees,” he said.
In general, the legislation creates a $140 billion trust fund that will finance an alternative claims-handling process administered through a new unit of the U.S. Department of Labor. The insurance industry would contribute approximately $46 billion to the fund over its 27.5-year life–the bulk of it in the first five years the fund is in existence.
The bill was sent back to the Judiciary Committee for further action for technical reasons in early February after several days' debate on the Senate floor. By revising it in this fashion, Sen. Specter meets the parliamentary requirements for restarting debate, subject to the approval of the Senate leadership.
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