I
107TH CONGRESS
1ST SESSION
H. R. 3272
To establish the Office of World Trade Center Attack Claims to pay claims
for injury to businesses and property suffered as a result of the attack
on the World Trade Center in New York City that occurred on September
11, 2001, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 9, 2001
Mr. NADLER (for himself and Mr. HINCHEY) introduced the following bill;
which was referred to the Committee on the Judiciary, and in addition
to the Committee on Transportation and Infrastructure, 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
A BILL
To establish the Office of World Trade Center Attack Claims
to pay claims for injury to businesses and property suf-
fered as a result of the attack on the World Trade
Center in New York City that occurred on September
11, 2001, 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.
This Act may be cited as the ‘‘World Trade Center
Attack Claims Act’’.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—Congress finds that—
(1) on September 11, 2001, an unprecedented
terrorist attack was perpetrated against the United
States on American soil;
(2) 1 of the targets of that terrorist attack was
the World Trade Center in New York City;
(3) the attack on the World Trade Center re-
sulted in the loss of thousands of lives, and the dam-
age or destruction of a 16-acre area in lower Man-
hattan, including thousands of homes and busi-
nesses;
(4) more than 1,000,000 tons of rubble must be
removed from the attack site;
(5) nearly 25,000,000 square feet of office
space, equivalent to 20 percent of all office space in
downtown New York, was damaged or destroyed by
the attack;
(6) approximately 850 businesses and over
125,000 workers were physically displaced as a re-
sult of the attack;
(7) more than an additional 9,000 businesses
employing over 145,000 people have been affected as
a result of restrictions on access resulting from the
attack;
(8) many of those businesses are on the verge
of bankruptcy because the businesses remain unable
to gain access to their property or are temporarily
unable to receive foot or vehicular traffic;
(9) it is estimated that the attack will cost New
York City and businesses in the city over
$105,000,000,000 in financial losses over the next 2
years; and
(10) certain victims of the attack are in need of
compensation for certain business and residential
losses resulting directly from the attack.
(b) PURPOSES.—The purposes of this Act are—
(1) to compensate certain victims of the ter-
rorist attack on the World Trade Center in New
York City for certain business and residential losses
resulting directly from the attack;
(2) to provide for the expeditious consideration
and payment of claims for those losses; and
(3) to assist victims of the attack to continue,
repair, replace, start, establish, or locate a business
or residence in New York City that was located in
the affected area before September 11, 2001.
SEC. 3. DEFINITIONS.
In this Act, the following definitions apply:
(1) AFFECTED
AREA.—The term ‘‘affected
area’’ means the area south of Canal Street in the
borough of Manhattan, New York City, New York.
(2) ATTACK.—The term ‘‘attack’’ means the at-
tack on the World Trade Center in New York City
that occurred on September 11, 2001.
(3) CLAIM.—The term ‘‘claim’’ means a claim
by an injured person under this Act for payment for
injury suffered by the injured person as a result of
the attack.
(4) CLAIMANT.—The term ‘‘claimant’’ means
an injured person that submits a claim under section
5(b).
(5) DIRECTOR.—The term ‘‘Director’’ means—
(A) the Director of the Federal Emergency
Management Agency; or
(B) if an Independent Claims Manager is
appointed under section 4(d)(4), the Inde-
pendent Claims Manager.
(6) INJURED PERSON.—
(A) IN GENERAL.—The term ‘‘injured per-
son’’ means an individual, corporation, partner-
ship, company, association, cooperative, joint
venture, limited liability company, estate, trust,
or nonprofit organization that—
(i) suffered injury as a result of the
attack; and
(ii) resides or maintains a place of
business in the affected area.
(B) EXCLUSIONS.—The term ‘‘injured per-
son’’ does not include—
(i) a lender that holds a mortgage on
or security interest in real or personal
property affected by the attack; or
(ii) a person that holds a lien on real
or personal property affected by the at-
tack.
(7) OFFICE.—The term ‘‘Office’’ means the Of-
fice of World Trade Center Attack Claims estab-
lished by section 4.
SEC. 4. OFFICE OF WORLD TRADE CENTER ATTACK
CLAIMS.
(a) IN GENERAL.—There is established within the
Federal Emergency Management Agency an office to be
known as the ‘‘Office of World Trade Center Attack
Claims’’.
(b) PURPOSE.—The Office shall receive, process, and
pay claims in accordance with section 5.
(c) FUNDING.—The Office—
(1) shall be funded from funds made available
under this Act; and
(2) may reimburse any other Federal agency
for provision of assistance in the receipt and proc-
essing of claims.
(d) PERSONNEL.—
(1) IN GENERAL.—The Office may appoint and
fix the compensation of such temporary personnel as
are necessary to carry out the duties of the Office,
without regard to the provisions of title 5, United
States Code, governing appointments in the competi-
tive service.
(2) PERSONNEL FROM OTHER AGENCIES.—On
the request of the Director, the head of any other
Federal agency may detail, on a reimbursable basis,
any of the personnel of the agency to the Federal
Emergency Management Agency to assist the Office
in carrying out the duties of the Office under this
Act.
(3) EFFECT ON OTHER FEMA DUTIES.—The es-
tablishment of the Office shall not diminish the au-
thority of, or funding available to, the Director to
carry out the responsibilities of the Federal Emer-
gency Management Agency under the Robert T.
Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5121 et seq.), including the timely
provision of disaster assistance to any area with re-
spect to which a major disaster or emergency is de-
clared by the President to exist during the period in
which the Director carries out this Act.
(4) APPOINTMENT
OF
INDEPENDENT
CLAIMS
MANAGER.—The Director may appoint an Inde-
pendent Claims Manager to head the Office and to
assume the duties of the Director under this Act.
SEC. 5. COMPENSATION FOR VICTIMS OF THE ATTACK.
(a) IN GENERAL.—Each injured person may receive
from the United States compensation for injury suffered
by the injured person as a result of the attack, as deter-
mined by the Director in accordance with subsection (d).
(b) SUBMISSION OF CLAIMS.—Not later than 2 years
after the date on which interim final regulations are pro-
mulgated under subsection (h), an injured person may
submit to the Director a written claim for payment of in-
jury suffered by the injured person as a result of the at-
tack in accordance with such requirements as the Director
determines to be appropriate.
(c) INVESTIGATION OF CLAIMS.—The Director shall
investigate, adjust, grant, deny, settle, or compromise any
claim submitted under subsection (b).
(d) AMOUNT OF PAYMENT.—
(i) An uninsured or underinsured
property loss.
(ii) Damage to or destruction of phys-
ical infrastructure.
(iii) An insurance deductible.
(iv) A temporary living or relocation
expense.
(v) Debris removal and other cleanup
costs.
(vi) Any other type of related injury
that the Director determines to be appro-
priate.
(B) BUSINESS
LOSS.—Under paragraph
(1), an injured person may receive payment for
a business loss consisting of 1 or more of the
following:
(i) An uninsured or underinsured
property loss.
(ii) Damage to or destruction of phys-
ical infrastructure.
(iii) Damage to or destruction of tan-
gible assets or inventory.
(iv) A business interruption loss.
(v) Overhead costs.
(vi) Employee wages for work not per-
formed.
(vii) An insurance deductible.
(viii) A temporary relocation expense.
(ix) Debris removal and other cleanup
costs.
(x) Any other type of injury that the
Director determines to be appropriate.
(3) BURDEN OF PROOF.—
(A) IN
GENERAL.—Subject to subpara-
graph (B), a claimant shall have the burden of
demonstrating injury suffered by the claimant.
(B) ABSENCE OF DOCUMENTS.—If docu-
mentary evidence substantiating injury is not
reasonably available, the Director may pay a
claim based on an affidavit or other documenta-
tion executed by the claimant.
(e) PAYMENT OF CLAIMS.—
(1) 
DETERMINATION
AND
PAYMENT
OF
AMOUNT.—
(A) IN GENERAL.—To the maximum ex-
tent practicable, not later than 180 days after
the date on which a claim is submitted under
subsection (b), the Director shall—
(i) determine the amount, if any, to
be paid for the claim; and
(ii) pay the amount.
(B) PRIORITY.—The Director may estab-
lish priorities for processing and paying claims
based on—
(i) an assessment of the needs of the
claimants; and
(ii) any other criteria that the Direc-
tor determines to be appropriate.
(C) PARAMETERS OF DETERMINATION.—
In determining and paying a claim, the Director
shall determine only—
(i) whether the claimant is an injured
person;
(ii) whether the injuries that are the
subject of the claim resulted from the at-
tack;
(iii) the amount, if any, to be paid
under this section; and
(iv) the person or persons entitled to
receive the amount.
(D) INSURANCE AND OTHER BENEFITS.—
(i) IN
GENERAL.—Subject to clause
(ii), to prevent recovery by a claimant in
excess of the equivalent of actual compen-
satory damages in accordance with sub-
section (d), the Director, in determining
the amount of, and paying, a claim, shall
reduce the amount to be paid for the claim
by an amount that is equal to the sum of
the payments or settlements of any kind
that were paid, or will be paid, with re-
spect to the claim, including—
(I) payments on insurance poli-
cies; and
(II) benefits under the public as-
sistance program, individual assist-
ance program, or other program of
the Federal Emergency Management
Agency or under a program of any
other Federal, State, or local agency.
(ii) GOVERNMENT LOANS.—Clause (i)
shall not apply to the receipt by a claimant
of any Federal, State, or local government
loan that is required to be repaid by the
claimant.
(2) ADVANCE OR PARTIAL PAYMENTS.—At the
request of a claimant, the Director may make 1 or
more advance or partial payments before the final
settlement of a claim.
(f) RECOVERY OF FUNDS IMPROPERLY PAID OR MIS-
USED.—The United States may recover any portion of a
payment on a claim that was improperly paid to the claim-
ant as a result of—
(1) fraud or misrepresentation on the part of
the claimant or a representative of the claimant;
(2) a material mistake on the part of the
United States;
(3) the payment of benefits described in sub-
section (e)(1)(D) that were not taken into account
in determining the amount of the payment; or
(4) the failure of the claimant to cooperate in
an audit.
(g) APPEALS OF DECISIONS.—
(1) RIGHT OF APPEAL.—A claimant may appeal
a decision concerning payment of a claim by filing,
not later than 60 days after the date on which the
claimant is notified that the claim of the claimant
will or will not be paid, a notice of appeal—
(A) in the case of a decision on a claim re-
lating to a business loss, with the Administrator
of the Small Business Administration; and
(B) in the case of a decision on a claim re-
lating to a residential loss, with the Director.
(2) PERIOD
FOR
DECISION.—A decision con-
cerning an appeal under paragraph (1) shall be ren-
dered not later than 90 days after the date on which
the notice of appeal is received.
(h) REGULATIONS.—Notwithstanding any other pro-
vision of law, not later than 45 days after the date of en-
actment of this Act—
(1) the Director shall promulgate and publish
in the Federal Register interim final regulations for
the processing and payment of claims; and
(2) the Director and the Administrator of the
Small Business Administration shall jointly promul-
gate and publish in the Federal Register procedures
under which a dispute concerning payment of a
claim may be settled through an appeals process de-
scribed in subsection (g).
(i) PUBLIC INFORMATION.—At the time of publica-
tion of interim final regulations under subsection (h), the
Director shall disseminate, through brochures, pamphlets,
radio, television, the print news media, and such other
media as the Director determines to be likely to reach pro-
spective claimants, a clear, concise, and easily understand-
able explanation, in English, Spanish, and any other lan-
guage that the Director determines to be appropriate, of—
(1) the rights conferred under this section; and
(2) the procedural and other requirements of
the regulations promulgated under subsection (h).
(j) COORDINATION.—In carrying out this section, the
Director shall coordinate with the Administrator of the
Small Business Administration, other Federal agencies,
State and local agencies, and any other individual or enti-
ty, as the Director determines to be necessary—
(1) to ensure the efficient administration of the
claims process; and
(2) to provide for local concerns.
(k) APPLICABILITY OF DEBT COLLECTION REQUIRE-
MENTS.—
(1) IN
GENERAL.—Section 3716 of title 31,
United States Code, shall not preclude any payment
on a claim.
(2) 
ASSIGNMENT
AND
EXEMPTION
FROM
CLAIMS OF CREDITORS.—
(A) ASSIGNMENT.—No assignment, re-
lease, or commutation of a payment due or pay-
able under this section shall be valid.
(B) EXEMPTION.—
(i) IN GENERAL.—A payment under
this section shall be exempt from all claims
of creditors and from levy, execution, at-
tachment, or other remedy for recovery or
collection of a debt.
(ii) NONWAIVABLE EXEMPTION.—The
exemption provided by clause (i) may not
be waived.
(3) EXCEPTION.—Notwithstanding paragraph
(2), the Director may—
(A) require the repayment, using a pay-
ment under this section, of any disaster loan
made by the Small Business Administration to
address injury suffered as a result of the at-
tack; and
(B) use the remedies provided by sub-
chapter II of chapter 37 of title 31, United
States Code, in collecting debts due to the Fed-
eral Government that arise from this Act.
SEC. 6. ACCEPTANCE OF SERVICES OF OTHER AGENCIES
AND VOLUNTEERS; GIFTS
In carrying out this Act, the Director may—
(1) accept and use the services or facilities of
any State or local government, or of any agency, of-
fice, or employee of any State or local government,
with the consent of the government;
(2) use such voluntary and uncompensated
services by individuals or organizations as may be
needed; and
(3) accept gifts of supplies, equipment, and fa-
cilities to be used in carrying out this Act.
SEC. 7. RELATIONSHIP TO FEDERAL ENTITLEMENT PRO-
GRAMS.
(a) REQUESTS FOR BENEFITS.—Nothing in this Act
affects any right of an injured person that submits a claim
to submit a request for benefits under any Federal entitle-
ment program.
(b) 
CONSIDERATION
OF
PAYMENTS
AS
RE-
SOURCES.—A payment on a claim received by an injured
person under section 5 shall not be taken into account in
determining the assets or resources of any individual or
household under any Federal program or federally assisted
program that provides financial aid, assistance, or benefits
based on need, including—
(1) the food stamp program under the Food
Stamp Act of 1977 (7 U.S.C. 2011 et seq.); and
(2) any program established under the Social
Security Act (42 U.S.C. 301 et seq.).
SEC. 8. REPORTS AND AUDITS.
(a) REPORTS.—Not later than 1 year after the date
of promulgation of interim final regulations under section
5(i) and annually thereafter, the Director shall submit to
Congress a report that describes the claims submitted
under section 5(b) during the year preceding the date of
submission of the report, including, with respect to each
claim—
(1) the amount claimed;
(2) a brief description of the nature of the
claim; and
(3) the status or disposition of the claim, in-
cluding the amount of any payment on the claim.
(b) AUDITS.—The Comptroller General shall—
(1) conduct an annual audit of the payment of
all claims submitted under section 5(b); and
(2) not later than 120 days after the date on
which the Director submits to Congress the initial
report required by subsection (a) and annually
thereafter, submit to Congress a report on the re-
sults of the audit.
SEC. 9. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated to carry out this Act—
(1) for administration by the Office of the com-
pensation process $100,000,000; and
(2) for payment of claims $1,900,000,000.
(b) AVAILABILITY.—Amounts made available under
subsection (a) shall remain available until expended.
(c) FEMA FUNDS.—None of the funds made avail-
able to the Federal Emergency Management Agency for
the administration of disaster relief shall be used to carry
out this Act.
SEC. 10. TERMINATION OF AUTHORITY.
The authority provided by this Act terminates effec-
tive 42 months after the date of enactment of this Act.
Æ