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United States of America Congressional llecord PROCEEDINGS AND DEBATES OF THE 98^ CONGRESS, FIRST SESSION Vol. 129WASHINGTON, THURSDAY, MAY 26, 1983 House of Representatives R PLAINTIFF'S I EXHIBIT | JMMC-5 NATIONAL TRAGEDY OF der a disproportionate share of the encourage the system^WWWWWW ASBESTOS DISEASE compensation burden. ttously and fairly, while protecting The enactment of occupational dis workers' rights. HON. GEORGE MILLER ease compensation legislation has been Last, this legislation recognizes that, or CALiroRNM an elusive goal for many years. Like as terrible as the asbestos trAgedy Is, IN THE HOUSE OP REPRESENTATIVES Thursday, May 26, 1963 Mr. MILLER of California. Mr. Speaker, asbestos disease is a national tragedy of stunning proportions, Oter the events which spurred toxic waste cleanup laws, however, we have failed to act until tragedy has struck. Today. I am introducing legislation to respond to this sweeping national crisis. This legislation wilt establish a there are many other ticking time bombs In our Nation's workplaces. Other workers who develop occupa tional diseases should not have to endure the long delays suffered by as bestos workers. 21 million Americans have been ex fair system for providing adequate posed to significant amounts of asbes benefits on a timely basis to occupa tos In occupations ranging from con tionally disabled Americans and their struction to shipbuilding to auto survivors--at no expense to the tax mobile maintenance. payer of this country. fn the San Francisco Bay area, a I am especially proud that the eight portion of which I represent, perhaps cosponsors of this Important legisla a quarter million men and women have been exposed to carcinogenic as bestos In shipyards since the end of tion include every Democratic member of my Labor Standards Subcommittee. The Occupational Disease Compen World War II. Hundreds of thousands of these men and women, over the course of many years, will develop disabling diseases as a result of that exposure. As many as 15 percent of heavily exposed work ers will die of asbestosis; many more will also die of cancer attributable to occupational expoaur* to ubeatoc. But few victims of occupational dis sation Act replaces the 51 contradic tory, complex, and Ineffective State systems with & single administrative mechanism for delivering benefits to deserving disease victims. This legislation builds on existing administrative structures within the Department of Labor. A special task force would be created within that De eases will ever receive the workers' partment to expedite the processing of compensation awards to which they the enormous backlog of asbestos are entitled. The few who do win wait claims. The asbestos task force would far longer and receive far less than oc be totally funded by responsible Indus cupational-injury victims. Less than 5 tries. not by taxpayers. percent of their medical costs will be The legislation provides disability paid by the compensation system. And and medical benefits to disabled work when they die. the survivors' benefits ers, and death benefits to surviving will bo one-tenth those of an occupa spouses and family members. Compen tional \niwry victim. sation under tills bill Is limited to The unworkabillty of the compensa those with work-related deaths and tion system has led over 20.000 asbes disabilities, and eligibility tests are tos workers to file lawsuits against 260 rigid to assure that only deserving ap Therefore, my legislation establishes a mechanism for extending the cover age of this act to other diseases and disabilities which result from occupa tional exposures, based upon expert scientific and medical research. This legislation has been developed over the course of a year and a half, with the cooperation and full partici pation of all parties to the asbestos dispute. I want to offer my apprecia tion to everyone who assisted in that process. As we move forward with hearings. I expect to hear recommendations for Improvements In the legislation. I wel come such advice. We must all recog nize that the opposition of any of the major parties can doom this legisla tion. But It would also doom tens of thousands of disabled workers, their families and their survivors to impov erishment. medical Inattention, and even greater tragedies. No responsible person or Industry can permit that to occur. This legislation is the very highest priority of the Subcommittee on Labor Standards. I am totally committed to expediting hearings, markup and pas sage in this Congress, and we will begin on that process next month. manufacturers and other third parties; plicants receive benefits. Stcnoif-sY-SzcTiox Analysis 500 new suits ale being filed each Fairness is the central principle em THE OCCUPATIONAL DISEASE COMPENSATION week, totally overwhelming the ability bodied in this bill. ACT. GEONQI UtU.CN. D-CALIP., AUTHOR of the courts to process the cases. The entire financial burden of this Seclton J. Section 1 establishes Die title of While there hnve been a few large awards and settlements, the delays are long, and the average benefits, like those under workers' compensation, have been Inadequate. The average return to a successful compensation program will be borne by responsible employers and the In dustry. The bllf docs not require the expenditure of any public funds. The funding mechanism employed by the bill is an Insurance pool based the Act. and provides a Table of Contents. Section Z. Section 2 contains the Congres sional findings and purposes which detail the risk of harmful substances to workers, the Inadequacy of the current compensation and llllgatlve processes, and the need (or a federal compensation program for occupa plaintiff Is under $50.000--and one- upon the estimated liability of each tional disease victims. third of that amount goes to attor neys. The remaining $25,000 to $30,000 represents the workers' lost wages, pain and suffering, medical expenses, and survivors* benefits. The settlement rarely covers the costs accrued by the disabled worker during the protracted participant. The average recipient under this plan would receive higher compensation at a much foster rale than the meager benefits received under the current compensation and tort liabihty systems. As with other workers' compensation laws, this Scctxon 3. This section defines the terms which arc used in the Act. Section 4. Section 4 establishes the appli cability of the Act to all employees and em ployers. and for all deaths or disabilities which result from unrk-relaled diseases which are covered bv the Act. Section 5. This section e<.tbhshes the litigation period. system would be the exclusive means compensation provided the victims of occu And when those meager benefits are gone, the responsible industry is free from obligation, and the bills are paid by the taxpayer. According to testimony before the Subcommittee on Labor Standards, the cost of providing public assistance to occupationally diseased workers is $3 billion a year--an unwitting taxpay er subsidy of hazardous Industries. The payments of prompt compensa tion benefits, as well as settlements for workers to receive disability and medical benefits, except in the case of workers who have already sought benefits under the existing State com pensation systems. Those workers would be able to proceed with lawsuits filed before the date of enactment of this new Jaw. My bill contains an important safe guard against the unlikely failure of the new compensation system. Work ers who file a claim under this bill pational diseases for d^alh or total or par tial disability. All medical expenses associat ed with the diseases arc to be compensated. In addition, monetary benefits which are fair, reasonable, and adequate to the needs of the victims will be provided. Benefits for total disability will be 80 percent of the Na tional Construction Average Weekly Wage for disabled workers whose primary expo sure to the harmful snb*:*nrc was during employment in ihr^construction industry; and for nil oilier worker*. 80 percent of the National Manufacturing Ater.ure Weekly Waec Monetary benefits for pur'lallv dis- and Judgments In the lawsuits have could also file a liability suit, but abled woikrrs will be based on their wage been further frustrated within the action on that suit would be suspended loss due to the disabling condition, or on the past year by the bankruptcy filings of the Manvllle Corp. and two other as bestos manufacturers. These actions not only delay the awarding of just benefits to workers, but also Jeopard ize the financial stability of businesses in order to give the compensation system an appropriate opportunity to process the claim. If the system fails to conclude a case within 18 months of filing, the injured worker will have the right to proceed instead with a law extent of the loss of their phvsical capacity due to the disabling condition Death and survivors' benefits are fixed at five years' total disability benefits Section 6 This section establishes the cri teria for determination of the ellftlolllty of a claimant for compensation. Claimants must which are being called upon to shoul suit. This compromise provision will demonstrate that the death or disability of MK.2' 1984 D 002955  the employee vu the result of a disease final agency determination Is made on the the cost of the compensation program which arose out of employment exposure to a toxic substance, and that the employee did not receive workers' compensation bene* fits for the same death or disability under a state workers' compensation law or the Longshore Act. Because the Initial scope of the bill Is limited to asbestos cases, this sec* tlon also contains medical presumptions es tablishing the cause and effect relationship between certain diseases and dkposure to as* bestos. Section 7. This section requires that claims be filed with the local office of the ^abor*-Department's Office of Workers* JOwnpensatlon Programs within two years 'after the death or disability occurs and the it claimant knew of the work-relatedness. Claims based on prcenactmcnt deaths or disabilities may be filed within two years of the effective date. If not otherwise compen* sated under the state workers' compensa* tlon law or the Longshore Act. Similar rules apply with respect to claims which may be filed based on subsequent coverage of other occupational diseases under the Act. Section J. This section establishes the pro cedure for the adjudication of claims. Claims are processed by the Office of Work ers' Compensation Programs, which may submit medical questions of fact for binding determination by Impartial medical examin ers. The OWCP will Issue an order awarding or denying compenaatlon. based on the evi dence adduced during the claims adjudica compensation claim within the 18 or 12 Section 16. This section establishes the month period (as appropriate), the claimant procedure by which the coverage of this Act must accept that determination, and the may be expanded to include different work law suit U withdrawn. If the final agency ers who may be exposed to toxic substances determination U not made within the 18 or other than asbestos. The National Institute 12 month period (as appropriate), the claim for Occupational Safety and Health vu ant may withdraw the compensation claim conduct an ongoing review of medical re and proceed with the prosecution of the law search. and the Secretary of HHS will suit against the third party. report annually on those studies which Indi .Section 11. Section 11 contains the mecha cate that the risk of occupational disease nism by which the cost of compensating vic among groups of workers exceed that which tims, as well u the cost of operating the would be expected In a similar unexposed compensation program, will be borne by re population by at least 30 percent. In these sponsible employers and Industry. There cases, the Secretary of HRS may recom will be no federal financial contribution to mend that the Secretary of Labor, by this program. formal rulemaking, promulgate regulations This section authorizes the Secretary to to expand the coverage of this Act to in assist in the formation of a pool of insurers clude such disease or such groups of work to underwrite liabilities under this Act. Re ers. The Secretary's regulation to expand sponsible employers and manufacturers coverage will Include medically Justified pre may secure liability Insurance through this sumptions linking diseases with exposure to pool, or with the approval of the Secretary, toxic substances, formulas for apportioning scIMnsure their obligations. financial responsibility among employers The Secretary Is directed to develop a for and manufacturers, and provisions for pro mula for allocating the responsibility for viding insurance coverage of those liabil funding benefits under the Act among re ities. The Secretary's regulation Is subject sponsible employers and manufacturers, to a Lwo-House Congressional veto. and to Insure through regulatory and en .Section 17. This section requires that the forcement authority provided, that employ Office of Workers' Compensation Programs ers and manufacturers meet their obligation establish a separate task force to handle to provide sufficient Insurance to meet the claims presented under this Act. and estab need of the compensation program. lish separate procedures for the processing .Section 12. This section provides that and adjudication of those claims. It directs tive process, unless a hearing Is requested. monetary benefits shall be paid bl-weeklv. the Benefits Review Board to prescribe In which case the administrative law Judge and shall commence promptly upon the rules of procedure for the discretionary will Issue an opinion, which will form the filing of an uncontested claim, or after the review of appeals taken from OWCP deter basis of the final agency determination. final determination of a claim which has minations on claims, Section 9. Section 9 provides that any party may petition for review of the agency order by the Benefits Review Board of the Department of Labor, within 30 days of such orders. Subsequent appeals are to the U.S. Circuit Courts of Appeals. Section 10. Section 10 establishes the rela tionship between the remedies under this Act and other lltlgatlve processes. This Act Is to be the workers' exclusive remedy against the employer, union, and agents and Insurers of the employer or the union. Those with pre-enactment desths and dis abilities may file for compensation under this Act if they haven't already received workers' compensation benefits, or have not been denied those benefits on an adjudica been contested. A mechanism for adjudicat ing questions arising out of the payment of benefits Is provided, as well aa penalties for the Improper suspension of compensation payments. Section 13. This section provides that the responsible employers and manufacturers wilt pay the representation fees of claimants who. because of challenges to their claims Tor compensation, must secure legal or nonlegal assistance In processing their claims. Section 14. Section 14 prohibits employer discrimination against an individual who has filed * compensation claim or other legal action, or who has previously been ex posed to a toxic substance In the workplace, and provides enforcement procedures. Jrction IS. This section contains the ad ministrative provisions for the insurance pool which will pay the benefits under the Act. permits the designation of a manager of the pool, and authorizes the pool or the Secretary to enter Into contracts for the ad ministration of the pool and the manage ment of Its responsibilities. Section 19. This section provides the Sec retary with authority to aeek to enjoin cer tain acts or practices which are violative of the Act. Section 20. This section provides that the holding invalid of any provision of this Act will not result In the Invalidation of the rest of the Act: but that a Judicial determination that holds Invalid the limitation of liability of manufacturers will result In the elimina tion on the merits. Those with post-enact Section IS. Tills section establishes a pro tion of such manufacturers' oblgatlon to ment claims must file for compensation gram In the Department of Health and provide ainduir*r*oomsnMtlon benefit*, under this Act. The filing of a claim for Human Services for research into Improving and similarly, that the holding Invalid of compensation serves as an automatic stay of the surveillance of workers exposed to toxic any .the compensation program.... any law suit which the claimant may have 'substances. Improving'medical -treatment'of' with respect to* groups of disabled worker! against a third party. Such stay remains In such workers, and studying the development will enable those workers to pursue legal effect for 18 months (for all claims filed of occupational diseases. This program is to remedies outside the Act. within the first two years after enactment) be funded by the employers and manufac Section 21. Section 21 provide* that the and for 13 months (for all claims filed after turers who contribute to the payment, of Act will become effective six months after the second year after enactment). If the compensation by a 1 percent surcharge on its enactment. >' M.-, D 002956