Union Calendar No. 303
105TH CONGRESS
2D SESSION
H. R. 1023
[Report No. 105–465, Parts I and II]
A BILL
To provide for compassionate payments with regard
to individuals with blood-clotting disorders, such
as hemophilia, who contracted human immuno-
deficiency virus due to contaminated blood prod-
ucts, and for other purposes.
MAY 13, 1998
Committee on Commerce discharged; committed to the
Committee of the Whole House on the State of the
Union and ordered to be printed
IB
Union Calendar No. 303
105TH CONGRESS
2D SESSION
H. R. 1023
[Report No. 105–465, Parts I and II]
To provide for compassionate payments with regard to individuals with blood-
clotting disorders, such as hemophilia, who contracted human immuno-
deficiency virus due to contaminated blood products, and for other pur-
poses.
IN THE HOUSE OF REPRESENTATIVES
MARCH 11, 1997
Mr. GOSS (for himself, Mr. ABERCROMBIE, Mr. ACKERMAN, Mr. ARCHER, Mr.
BAKER, Mr. BALDACCI, Mr. BARCIA, Mr. BARRETT of Nebraska, Mr.
BENTSEN, 
Mr. 
BERMAN, 
Mr. 
BILBRAY, 
Mr. 
BILIRAKIS, 
Mr.
BLAGOJEVICH, Mr. BONIOR, Mr. BORSKI, Mr. BOUCHER, Ms. BROWN of
Florida, Mr. BUNNING, Mrs. CARSON, Mr. CASTLE, Mr. CLAY, Mr.
COBLE, Mr. COBURN, Mr. CONDIT, Mr. CONYERS, Mr. COYNE, Mr.
CUNNINGHAM, Mr. DAVIS of Virginia, Mr. DEFAZIO, Mr. DELAHUNT,
Ms. DELAURO, Mr. DELLUMS, Mr. DEUTSCH, Mr. DIAZ-BALART, Ms.
DUNN, Mr. EHLERS, Mr. ENGLISH of Pennsylvania, Mr. ENSIGN, Ms.
ESHOO, Mr. EVANS, Mr. FALEOMAVAEGA, Mr. FARR of California, Mr.
FATTAH, Mr. FAZIO of California, Mr. FILNER, Mr. FLAKE, Mr. FOGLI-
ETTA, Mr. FOLEY, Mr. FORBES, Mr. FOX of Pennsylvania, Mr. FRANK
of Massachusetts, Mr. FROST, Ms. FURSE, Mr. GALLEGLY, Mr. GEJDEN-
SON, Mr. GEKAS, Mr. GILCHREST, Mr. GINGRICH, Mr. GONZALEZ, Mr.
GREEN, Mr. GUTIERREZ, Mr. HALL of Ohio, Mr. HASTERT, Mr.
HASTINGS of Florida, Mr. HAYWORTH, Mr. HEFNER, Mr. HINCHEY, Mr.
HOLDEN, Mr. HORN, Ms. JACKSON-LEE of Texas, Mr. JENKINS, Mrs.
JOHNSON of Connecticut, Ms. EDDIE BERNICE JOHNSON of Texas, Mr.
KANJORSKI, Mrs. KELLY, Mrs. KENNELLY of Connecticut, Mr. KILDEE,
Mr. KING, Mr. KNOLLENBERG, Mr. KOLBE, Mr. LAFALCE, Mr.
LAHOOD, Mr. LANTOS, Mr. LARGENT, Mr. LATHAM, Mr. LEWIS of Geor-
gia, Mr. MALONEY of Connecticut, Mrs. MALONEY of New York, Mr.
MANTON, 
Mr. 
MARTINEZ, 
Mr. 
MATSUI, 
Mr. 
MCCOLLUM, 
Mr.
MCDERMOTT, Mr. MCGOVERN, Mr. MCHALE, Mr. MCHUGH, Mr.
MCKEON, Ms. MCKINNEY, Mr. MEEHAN, Mrs. MEEK of Florida, Mr.
MILLER of California, Mr. MILLER of Florida, Mrs. MINK of Hawaii, Mr.
MOAKLEY, Ms. MOLINARI, Mrs. MORELLA, Mr. NADLER, Mr. NEAL of
Massachusetts, Ms. NORTON, Mr. NORWOOD, Mr. OLVER, Mr. OWENS,
Mr. OXLEY, Mr. PASTOR, Mr. PAYNE, Ms. PELOSI, Ms. PRYCE of Ohio,
Mr. RAHALL, Mr. ROMERO-BARCELO´, Mr. RUSH, Mr. SABO, Mr. DAN
SCHAEFER of Colorado, Mr. SCHUMER, Mr. SHAW, Mr. SHAYS, Mr. SHU-
STER, Mr. SISISKY, Mr. SKELTON, Mr. SMITH of New Jersey, Mr.
STARK, Mr. STEARNS, Mr. STOKES, Mr. STUPAK, Mr. TALENT, Mr. TAY-
LOR of North Carolina, Mrs. THURMAN, Mr. TIERNEY, Mr. TORRES, Mr.
TOWNS, Mr. VISCLOSKY, Mr. WALSH, Mr. WATT of North Carolina, Mr.
WAXMAN, Mr. WELDON of Pennsylvania, Mr. WOLF, Mr. WYNN, Mr.
YATES, Mr. WELLER, Mr. SCHIFF, Mr. BISHOP, Mr. BOEHLERT, Mr.
BROWN of California, and Mr. SPRATT) introduced the following bill;
which was referred to the Committee on the Judiciary, and in addition
to the Committees on Commerce and Ways and Means, for a period to
be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee
concerned
MARCH 25, 1998
Reported from the Committee on the Judiciary with amendments
[Strike out all after the enacting clause and insert the part printed in italic]
MARCH 25, 1998
Referral to the Committees on Commerce and Ways and Means extended for
a period ending not later than June 2, 1998
MAY 7, 1998
Reported from the Committee on Ways and Means with amendments
[Omit the part struck through in italic and insert the part printed in boldface roman]
MAY 13, 1998
Additional sponsors: Mr. DAVIS of Illinois, Mr. CLYBURN, Mr. MENENDEZ,
Mr. WEXLER, Ms. CHRISTIAN-GREEN, Mr. JACKSON of Illinois, Mrs.
EMERSON, Mr. CARDIN, Mr. MARKEY, Mr. YOUNG of Florida, Ms.
DEGETTE, Mr. HILLIARD, Mr. JEFFERSON, Mr. RANGEL, Mr. TRAFI-
CANT, Mrs. LOWEY, Mr. DIXON, Mr. RAMSTAD, Ms. STABENOW, Mr.
ALLEN, Mr. MCNULTY, Mr. COSTELLO, Mr. GILMAN, Mr. LUCAS of
Oklahoma, Mr. SANDERS, Mr. SHADEGG, Mr. LEVIN, Mr. HOEKSTRA,
Mr. GIBBONS, Mrs. FOWLER, Ms. KILPATRICK, Mr. SPENCE, Mr. FORD,
Mr. KIND, Mr. MASCARA, Mr. WATKINS, Ms. WOOLSEY, Mr. WEYGAND,
Mr. HINOJOSA, Mr. GREENWOOD, Mr. KENNEDY of Massachusetts, Mr.
PASCRELL, Mr. COOK, Mr. BAESLER, Mr. DAVIS of Florida, Mr. CAMP,
Mr. CHAMBLISS, Mr. LEWIS of California, Mr. JOHN, Mr. MICA, Mr.
GILLMOR, Mr. WELDON of Florida, Mr. MORAN of Virginia, Mr. INGLIS
of South Carolina, Mr. MURTHA, Mrs. MCCARTHY of New York, Mr.
HULSHOF, Mr. CALVERT, Ms. LOFGREN, Ms. DANNER, Mr. THOMPSON,
Mr. ROTHMAN, Mr. PETERSON of Minnesota, Mr. CAPPS, Mr. LEACH,
Mr. OBERSTAR, Mr. ENGEL, Mr. UPTON, Mr. UNDERWOOD, Mr. PRICE
of North Carolina, Ms. SLAUGHTER, Mr. SOLOMON, Mr. LAZIO of New
York, Mr. BACHUS, Mr. DEAL of Georgia, Ms. WATERS, Mr. DOYLE, Ms.
VALA´ZQUEZ, Mr. TURNER, Mr. MCCRERY, Mr. LINDER, Ms. ROS-
LEHTINEN, Mr. ANDREWS, Ms. MCCARTHY of Missouri, Mr. LAMPSON,
Mr. SESSIONS, Mr. SMITH of Michigan, Mr. JONES, Mr. WICKER, Mrs.
LINDA SMITH of Washington, Mr. BURR of North Carolina, Mr.
MCDADE, Mr. BALLENGER, Mr. TAUZIN, Mr. PITTS, Mr. CLEMENT, Mr.
DICKEY, Mr. BATEMAN, Mr. JOHNSON of Wisconsin, Mr. PALLONE, Mr.
ADERHOLT, Mr. GOODLING, Mr. DUNCAN, Mr. CRAMER, Mr. LOBIONDO,
Mr. NUSSLE, Mr. KENNEDY of Rhode Island, Mr. HOUGHTON, Mr. ROG-
ERS, Mr. QUINN, Mr. ETHERIDGE, Mrs. NORTHUP, Ms. KAPTUR, Mr.
CHRISTENSEN, Mr. PORTMAN, Mr. KLINK, Mr. REGULA, and Mr.
POSHARD
MAY 13, 1998
Committee on Commerce discharged; committed to the Committee of the
Whole House on the State of the Union and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on March 11, 1997]
A BILL
To provide for compassionate payments with regard to indi-
viduals with blood-clotting disorders, such as hemophilia,
who contracted human immunodeficiency virus due to
contaminated blood products, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Ricky Ray Hemophilia Relief Fund Act of 1998’’.
(b) TABLE OF CONTENTS.—The table of contents of this
Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—HEMOPHILIA RELIEF FUND
Sec. 101. Ricky Ray Hemophilia Relief Fund.
Sec. 102. Compassionate payment relating to individuals with blood-clotting dis-
orders and HIV.
Sec. 103. Determination and payment.
Sec. 104. Limitation on transfer of rights and number of petitions.
Sec. 105. Time limitation.
Sec. 106. Certain claims not affected by payment.
Sec. 107. Limitation on agent and attorney fees.
Sec. 108. Definitions.
TITLE II—TREATMENT OF CERTAIN PRIVATE SETTLEMENT PAY-
MENTS IN HEMOPHILIA-CLOTTING-FACTOR SUIT UNDER THE
MEDICAID AND SSI PROGRAMS
Sec. 201. Treatment of certain private settlement payments in hemophilia-clot-
ting-factor suit under the Medicaid and SSI programs.
TITLE I—HEMOPHILIA RELIEF
FUND
SEC. 101. RICKY RAY HEMOPHILIA RELIEF FUND.
(a) ESTABLISHMENT.—There is established in the
Treasury of the United States a trust fund to be known
as the ‘‘Ricky Ray Hemophilia Relief Fund’’, which shall
be administered by the Secretary of the Treasury.
(b) INVESTMENT OF AMOUNTS IN FUND.—Amounts in
the Fund shall be invested in accordance with section 9702
of title 31, United States Code, and any interest on and
proceeds from any such investment shall be credited to and
become part of the Fund.
(c) AVAILABILITY OF FUND.—Amounts in the Fund
shall be available only for disbursement by the Secretary
of Health and Human Services under section 103.
(d) TERMINATION.—The Fund shall terminate upon
the expiration of the 5-year period beginning on the date
of the enactment of this Act. If all of the amounts in the
Fund have not been expended by the end of the 5-year pe-
riod, investments of amounts in the Fund shall be liq-
uidated, the receipts of such liquidation shall be deposited
in the Fund, and all funds remaining in the Fund shall
be deposited in the miscellaneous receipts account in the
Treasury of the United States.
(e) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Fund to carry out this
title $750,000,000.
SEC. 102. COMPASSIONATE PAYMENT RELATING TO INDI-
VIDUALS WITH BLOOD-CLOTTING DISORDERS
AND HIV.
(a) IN GENERAL.—If the conditions described in sub-
section (b) are met and if there are sufficient amounts in
the Fund to make each payment, the Secretary shall make
a single payment of $100,000 from the Fund to any indi-
vidual who has an HIV infection and who is described in
one of the following paragraphs:
(1) The individual has any form of blood-clotting
disorder, such as hemophilia, and was treated with
antihemophilic factor at any time during the period
beginning on July 1, 1982, and ending on December
31, 1987.
(2) The individual —
(A) is the lawful spouse of an individual de-
scribed in paragraph (1); or
(B) is the former lawful spouse of an indi-
vidual described in paragraph (1) and was the
lawful spouse of the individual at any time after
a date, within the period described in such sub-
paragraph, on which the individual was treated
as described in such paragraph and through
medical documentation can assert reasonable cer-
tainty of transmission of HIV from individual
described in paragraph (1).
(3) The individual acquired the HIV infection
through perinatal transmission from a parent who is
an individual described in paragraph (1) or (2).
(b) CONDITIONS.—The conditions described in this
subsection are, with respect to an individual, as follows:
(1) SUBMISSION
OF
MEDICAL
DOCUMENTATION
OF HIV INFECTION.—The individual submits to the
Secretary written medical documentation that the in-
dividual has an HIV infection.
(2) PETITION.—A petition for the payment is
filed with the Secretary by or on behalf of the individ-
ual.
(3) DETERMINATION.—The Secretary determines,
in accordance with section 103(b), that the petition
meets the requirements of this title.
SEC. 103. DETERMINATION AND PAYMENT.
(a) ESTABLISHMENT OF FILING PROCEDURES.—The
Secretary of Health and Human Services shall establish
procedures under which individuals may submit petitions
for payment under this title. The procedures shall include
a requirement that each petition filed under this Act in-
clude written medical documentation that the relevant indi-
vidual described in section 102(a)(1) has (or had) a blood-
clotting disorder, such as hemophilia, and was treated as
described in such section.
(b) DETERMINATION.—For each petition filed under
this title, the Secretary shall determine whether the petition
meets the requirements of this title.
(c) PAYMENT.—
(1) IN GENERAL.—To the extent there are suffi-
cient amounts in the Fund to cover each payment, the
Secretary shall pay, from the Fund, each petition
that the Secretary determines meets the requirements
of this title in the order received.
(2) PAYMENTS IN CASE OF DECEASED INDIVID-
UALS.—
(A) IN GENERAL.—In the case of an indi-
vidual referred to in section 102(a) who is de-
ceased at the time that payment is made under
this section on a petition filed by or on behalf of
the individual, the payment shall be made as fol-
lows:
(i) If the individual is survived by a
spouse who is living at the time of payment,
the payment shall be made to such surviv-
ing spouse.
(ii) If the individual is not survived by
a spouse described in clause (i), the pay-
ment shall be made in equal shares to all
children of the individual who are living at
the time of the payment.
(iii) If the individual is not survived
by a person described in clause (i) or (ii),
the payment shall be made in equal shares
to the parents of the individual who are liv-
ing at the time of payment.
(iv) If the individual is not survived
by a person described in clause (i), (ii), or
(iii), the payment shall revert back to the
Fund.
(B) FILING OF PETITION BY SURVIVOR.—If
an individual eligible for payment under section
102(a) dies before filing a petition under this
title, a survivor of the individual may file a pe-
tition for payment under this title on behalf of
the individual if the survivor may receive pay-
ment under subparagraph (A).
(C) DEFINITIONS.—For purposes of this
paragraph:
(i) The term ‘‘spouse’’ means an indi-
vidual who was lawfully married to the rel-
evant individual at the time of death.
(ii) The term ‘‘child’’ includes a recog-
nized natural child, a stepchild who lived
with the relevant individual in a regular
parent-child relationship, and an adopted
child.
(iii) The term ‘‘parent’’ includes fa-
thers and mothers through adoption.
(3) TIMING OF PAYMENT.—The Secretary may
not make a payment on a petition under this title be-
fore the expiration of the 120-day period beginning on
the date of the enactment of this Act or after the expi-
ration of the 5-year period beginning on the date of
the enactment of this Act.
(d) ACTION ON PETITIONS.—The Secretary shall com-
plete the determination required by subsection (b) regarding
a petition not later than 120 days after the date the petition
is filed under this title.
(e) HUMANITARIAN NATURE OF PAYMENT.—This Act
does not create or admit any claim of or on behalf of the
individual against the United States or against any officer,
employee, or agent thereof acting within the scope of em-
ployment or agency that relate to an HIV infection arising
from treatment with antihemophilic factor, at any time
during the period beginning on July 1, 1982, and ending
on December 31, 1987. A payment under this Act shall,
however, when accepted by or on behalf of the individual,
be in full satisfaction of all such claims by or on behalf
of that individual.
(f) ADMINISTRATIVE COSTS NOT PAID FROM FUND.—
No costs incurred by the Secretary in carrying out this title
may be paid from the Fund or set off against, or otherwise
deducted from, any payment made under subsection (c)(1).
(g) TERMINATION OF DUTIES OF SECRETARY.—The
duties of the Secretary under this section shall cease when
the Fund terminates.
(h) TREATMENT
OF
PAYMENTS
UNDER
OTHER
LAWS.—A payment under subsection (c)(1) to an individ-
ual—
(1) shall be treated for purposes of the internal
revenue laws of the United States as damages received
on account of personal injuries or sickness;
(1) shall be treated for purposes of
the Internal Revenue Code of 1986 as
damages described in section 104(a)(2) of
such Code;
(2) shall not be included as income or resources
for purposes of determining the eligibility of the indi-
vidual to receive benefits described in section
3803(c)(2)(C) of title 31, United States Code, or the
amount of such benefits, and such benefits shall not
be secondary to, conditioned upon reimbursement
from, or subject to any reduction because of receipt
of, any such payment; and
(3) shall not be treated as a third party payment
or payment in relation to a legal liability with re-
spect to such benefits and shall not be subject (whether
by subrogation or otherwise) to recovery, recoupment,
reimbursement, or collection with respect to such ben-
efits (including the Federal or State governments or
any entity that provides such benefits under a con-
tract).
(i) REGULATORY AUTHORITY.—The Secretary may
issue regulations necessary to carry out this title.
(j) TIME OF ISSUANCE OF PROCEDURES.—The Sec-
retary shall, through the promulgation of appropriate regu-
lations, guidelines, or otherwise, first establish the proce-
dures to carry out this title not later than 120 days after
the date of the enactment of this Act.
SEC. 104. LIMITATION ON TRANSFER OF RIGHTS AND NUM-
BER OF PETITIONS.
(a) RIGHTS NOT ASSIGNABLE OR TRANSFERABLE.—
Any right under this title shall not be assignable or trans-
ferable.
(b) 1 PETITION WITH RESPECT TO EACH VICTIM.—
With respect to each individual described in paragraph (1),
(2), or (3) of section 102(a), the Secretary may not make
payment with respect to more than 1 petition filed in re-
spect to an individual.
SEC. 105. TIME LIMITATION.
The Secretary may not make any payment with re-
spect to any petition filed under this title unless the petition
is filed within 3 years after the date of the enactment of
this Act.
SEC. 106. CERTAIN CLAIMS NOT AFFECTED BY PAYMENT.
A payment made under section 103(c)(1) shall not be
considered as any form of compensation, or reimbursement
for a loss, for purposes of imposing liability on the individ-
ual receiving the payment, on the basis of such receipt, to
repay any insurance carrier for insurance payments or to
repay any person on account of worker’s compensation pay-
ments. A payment under this title shall not affect any claim
against an insurance carrier with respect to insurance or
against any person with respect to worker’s compensation.
SEC. 107. LIMITATION ON AGENT AND ATTORNEY FEES.
Notwithstanding any contract, the representative of an
individual may not receive, for services rendered in connec-
tion with the petition of an individual under this title, more
than 2 percent of a payment made under this title on the
petition. Any such representative who violates this section
shall be fined not more than $50,000.
SEC. 108. DEFINITIONS.
For purposes of this title:
(1) The term ‘‘AIDS’’ means acquired immune
deficiency syndrome.
(2) The term ‘‘Fund’’ means the Ricky Ray He-
mophilia Relief Fund.
(3) The term ‘‘HIV’’ means human immuno-
deficiency virus.
(4) Unless otherwise provided, the term ‘‘Sec-
retary’’ means Secretary of Health and Human
Services.
TITLE II—TREATMENT OF CER-
TAIN
PRIVATE
SETTLEMENT
PAYMENTS
IN
HEMOPHILIA-
CLOTTING-FACTOR
SUIT
UNDER
THE
MEDICAID
AND
SSI PROGRAMS
SEC. 201. TREATMENT OF CERTAIN PRIVATE SETTLEMENT
PAYMENTS
IN
HEMOPHILIA-CLOTTING-FAC-
TOR SUIT UNDER THE MEDICAID AND SSI
PROGRAMS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, a settlement payment shall not be considered
income or resources in determining a class member’s eligi-
bility for, or the amount of—
(1) medical assistance under title XIX of the So-
cial Security Act, or
(2) supplemental security income benefits under
title XVI of such Act.
(b) DEFINITIONS.—For purposes of this section:
(1) CLASS MEMBER.—The term ‘‘class member’’
means a member of the Settlement Class in the settle-
ment in In Re Factor VIII or IX Concentrate Blood
Products Litigation (United States District Court,
Northern District of Illinois, Eastern Division; Civil
Action No. 96–C–5024).
(2) SETTLEMENT PAYMENT.—The term ‘‘settle-
ment payment’’ means a payment to a class member
under the settlement described in paragraph (1).
TITLE II—TREATMENT OF CER-
TAIN PAYMENTS IN HEMO-
PHILIA-CLOTTING-FACTOR
SUIT UNDER THE SSI PRO-
GRAM
SEC. 201. TREATMENT OF CERTAIN PAYMENTS IN HEMO-
PHILIA-CLOTTING-FACTOR SUIT UNDER THE
MEDICAID AND SSI PROGRAMS.
(a) PRIVATE PAYMENTS.—
(1) IN GENERAL.—Notwithstanding any
other provision of law, the payments de-
scribed in paragraph (2) shall not be con-
sidered income or resources in determin-
ing eligibility for, or the amount of—
(A) medical assistance under title
XIX of the Social Security Act, or
(B) supplemental security income
benefits under title XVI of the Social
Security Act .
(2) PRIVATE
PAYMENTS
DESCRIBED.—
The payments described in this sub-
section are—
(A) payments made from any fund
established pursuant to a class settle-
ment in the case of Susan Walker v.
Bayer Corporation, et al., 96–C–5024
(N.D. Ill.); and
(B) payments made pursuant to a
release of all claims in a case—
(i) that is entered into in lieu
of the class settlement referred to
in subparagraph (A); and
(ii) that is signed by all af-
fected parties in such case on or
before the later of—
(I) December 31, 1997, or
(II) the date that is 270
days after the date on which
such release is first sent to
the persons (or the legal rep-
resentative of such persons)
to whom the payment is to be
made.
(b) GOVERNMENT PAYMENTS.—
(1) IN GENERAL.—Notwithstanding any
other provision of law, the payments de-
scribed in paragraph (2) shall not be con-
sidered income or resources in determin-
ing eligibility for, or the amount of sup-
plemental security income benefits under
title XVI of the Social Security Act.
(2) 
GOVERNMENT
PAYMENTS
DE-
SCRIBED.—The payments described in this
subsection are payments made from the
fund established pursuant to section 101
of this Act.
Amend the title so as to read: ‘‘A bill to provide for
compassionate payments with regard to individuals with
blood-clotting disorders, such as hemophilia, who con-
tracted human immunodeficiency virus due to contami-
nated antihemophilic factor, and for other purposes.’’.