I
104TH CONGRESS
1ST SESSION
H. R. 1023
To provide procedures for claims for compassionate payments with regard
to individuals with blood-clotting disorders, such as hemophilia, who
contracted human immunodeficiency virus due to contaminated blood
products.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 23, 1995
Mr. GOSS (for himself, Mr. QUILLEN, Mr. ENGEL, Mr. MILLER of Florida,
Mrs. MEEK of Florida, Mr. TRAFICANT, Mr. STEARNS, Mr. ENGLISH of
Pennsylvania, Mr. DEUTSCH, Mr. GEJDENSON, Mr. CALVERT, Ms.
FURSE, Mr. BARTLETT of Maryland, Mr. STUDDS, Mrs. FOWLER, Mr.
RAHALL, Mr. HASTINGS of Florida, Mr. NADLER, Mr. SHAYS, Mr.
BECERRA, Mrs. SEASTRAND, and Mr. MCHALE) introduced the following
bill; which was referred to the Committee on the Judiciary
A BILL
To provide procedures for claims 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.
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 ‘‘Ricky Ray Hemophilia
Relief Fund Act of 1995’’.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds that—
(1) approximately 1⁄2 of all individuals in the
United States who suffer from blood-clotting dis-
orders, such as hemophilia, were exposed, through
the 
use 
of 
blood-clotting 
agents, 
to 
human
immunodeficiency virus (HIV), which causes the
fatal illness known as acquired immune deficiency
syndrome (AIDS);
(2) the Federal Government has a shared re-
sponsibility with the blood-products industry for pro-
tecting the safety of the blood supply of the Nation
and for regulating the safety of blood-clotting
agents;
(3) blood and blood derivatives (including blood-
clotting agents) are subject to more stringent regula-
tion by the Federal Government than are most prod-
ucts regulated under the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 301 et seq.), because blood
and blood derivatives are subject to regulation under
the Public Health Service Act (42 U.S.C. 201 et
seq.) as well as the Federal Food, Drug, and Cos-
metic Act (21 U.S.C. 301 et seq.);
(4) individuals with blood-clotting disorders,
such as hemophilia, were at an unusually high and
largely preventable risk of contracting HIV during
the period beginning in 1980 (when technology be-
came available to pasteurize blood-clotting agents)
and ending in 1987 (when the last mass recall of
contaminated anti-hemophilic factor (AHF) oc-
curred);
(5) during the period beginning in 1980 and
ending in 1987, despite growing concerns about
blood-borne viruses such as hepatitis and HIV, the
Federal Government did not require the blood-prod-
ucts industry to use available technology to ensure
the safety of blood products that were allowed on the
market for sale to individuals with blood-clotting dis-
orders, such as hemophilia;
(6) the Federal Government did not require
that, to allow for fully informed decisionmaking re-
garding treatment options, the blood-products indus-
try provide directly to individuals with blood-clotting
disorders, such as hemophilia, all available informa-
tion about the risks of contaminated blood products;
(7) the Federal Government failed to fulfill its
responsibility to properly regulate the blood-products
industry, and thus exposed individuals with blood-
clotting disorders, such as hemophilia, and their
families to potential infection with a fatal disease;
(8) 17 other developed countries have estab-
lished government compensation programs to assist
individuals with blood-clotting disorders, such as he-
mophilia, who were infected with HIV;
(9) individuals with blood-clotting disorders,
such as hemophilia, who have HIV infections incur
annual medical costs that often exceed $150,000,
due to the expense of the necessary medications and
the complications caused by the combination of the
2 illnesses;
(10) Ricky Ray was born with hemophilia and,
like his 2 younger brothers and thousands of others,
became infected with the deadly HIV through use of
contaminated blood-clotting products;
(11) Ricky Ray and his family have brought na-
tional attention to the suffering of individuals with
blood-clotting disorders, such as hemophilia, and
their families, who have been devastated by HIV;
and
(12) Ricky Ray died at the age of 15 on De-
cember 13, 1992, of hemophilia-associated AIDS,
and this Act should bear his name.
(b) PURPOSE.—It is the purpose of this Act to estab-
lish a procedure to make partial restitution to individuals
who were infected with HIV after treatment, during the
period beginning in 1980 and ending in 1987, with con-
taminated blood products.
SEC. 3. TRUST 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 Attorney
General under section 5.
(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
period, 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 Act $1,000,000,000.
SEC. 4. CLAIMS RELATING TO BLOOD-CLOTTING DIS-
ORDERS AND HIV.
Any individual who submits to the Attorney General
written medical documentation that the individual has an
HIV infection shall receive $125,000, from amounts avail-
able in the Fund, if each of the following conditions is
met:
(1) CHARACTERISTICS
OF
INDIVIDUAL.—The
individual is described in 1 of the following subpara-
graphs:
(A) The individual has any form of blood-
clotting disorder, such as hemophilia, and was
treated with blood-clotting agents (in the form
of blood components or blood products) at any
time during the period beginning on January 1,
1980, and ending on December 31, 1987.
(B) The individual—
(i) is the lawful spouse of an individ-
ual described in subparagraph (A); or
(ii) is the former lawful spouse of an
individual described in subparagraph (A)
and was the lawful spouse of the individual
at any time after a date, within the period
described in such subparagraph, on which
the individual was treated as described in
such subparagraph.
(C) The individual acquired the HIV infec-
tion through perinatal transmission from a par-
ent who is an individual described in subpara-
graph (A) or (B).
(2) CLAIM.—A claim for the payment is filed
with the Attorney General by or on behalf of the in-
dividual.
(3) DETERMINATION.—The Attorney General
determines, in accordance with section 5(b), that the
claim meets the requirements of this Act.
SEC. 5. DETERMINATION AND PAYMENT OF CLAIMS.
(a) ESTABLISHMENT OF FILING PROCEDURES.—The
Attorney General shall establish procedures under which
individuals may submit claims for payment under this Act.
The procedures shall include a requirement that each
claim filed under this Act include written medical docu-
mentation that the relevant individual described in section
4(1)(A) has a blood-clotting disorder, such as hemophilia,
and was treated as described in such section.
(b) DETERMINATION OF CLAIMS.—For each claim
filed under this Act, the Attorney General shall determine
whether the claim meets the requirements of this Act.
(c) PAYMENT OF CLAIMS.—
(1) IN GENERAL.—The Attorney General shall
pay, from amounts available in the Fund, each claim
that the Attorney General determines meets the re-
quirements of this Act.
(2) PAYMENTS IN CASE OF DECEASED INDIVID-
UALS.—
(A) IN GENERAL.—In the case of an indi-
vidual referred to in section 4 who is deceased
at the time that payment is made under this
section on a claim filed by or on behalf of the
individual, the payment shall be made to the es-
tate of the individual, if such an estate exists.
If no such estate exists, the payment may be
made only as follows:
(i) If the individual is survived by a
spouse who is living at the time of pay-
ment, the payment shall be made to such
surviving 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
living at the time of payment.
(B) FILING OF CLAIM BY ESTATE OR SUR-
VIVOR.—If an individual eligible for payment
under section 4 dies before filing a claim under
this Act—
(i) the estate of the individual, if such
an estate exists, may file a claim for pay-
ment under this Act on behalf of the indi-
vidual; or
(ii) if no such estate exists, a survivor
of the individual may file a claim for pay-
ment under this Act on behalf of the indi-
vidual if the survivor may receive payment
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.
(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 Attorney Gen-
eral may not make a payment on a claim under this
Act before the expiration of the 90-day period begin-
ning on the date of the enactment of this Act or
after the expiration of the 5-year period beginning
on the date of the enactment of this Act.
(4) CHOICE OF PAYMENT METHODS.—An indi-
vidual whom the Attorney General determines to be
entitled to a payment under subsection (c)(1) may
choose to receive the payment in the form of—
(A) a lump sum of $125,000, which shall
be paid not later than 90 days after the Attor-
ney General determines that the individual is
entitled to receive payment under subsection
(c)(1); or
(B) 4 subpayments, of which—
(i) the 1st subpayment shall consist of
$50,000 and shall be paid not later than
90 days after the Attorney General deter-
mines that the individual is entitled to re-
ceive payment under subsection (c)(1); and
(ii) the 2d, 3d, and 4th subpayments
shall each consist of $25,000 and shall
each be paid upon the expiration of the 6-
month period beginning on the date of the
preceding subpayment.
(d) ACTION ON CLAIMS.—The Attorney General shall
complete the determination required by subsection (b) re-
garding a claim not later than 90 days after the claim
is filed under this Act.
(e) PAYMENT
IN FULL SETTLEMENT
OF CLAIMS
AGAINST UNITED STATES.—Payment under this Act,
when accepted by an individual described in section 4 or
by the estate of or a survivor of such an individual on
behalf of the individual, shall be in full satisfaction of all
claims of or on behalf of the individual against the United
States (but not against any other person or entity) that
arise out of both an HIV infection and treatment, at any
time during the period beginning on January 1, 1980, and
ending on December 31, 1987, with blood-clotting agents
(in the form of blood components or blood products).
(f) ADMINISTRATIVE
COSTS
NOT
PAID
FROM
FUND.—No costs incurred by the Attorney General in car-
rying out this Act 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 ATTORNEY GEN-
ERAL.—The duties of the Attorney General under this sec-
tion shall cease when the Fund terminates.
(h) TREATMENT
OF PAYMENTS UNDER OTHER
LAWS.—A payment under subsection (c)(1) to an individ-
ual or an estate—
(1) shall be treated for purposes of the internal
revenue laws of the United States as damages re-
ceived on account of personal injuries or sickness;
and
(2) shall not be included as income or resources
for purposes of determining the eligibility of the in-
dividual to receive benefits described in section
3803(c)(2)(C) of title 31, United States Code, or the
amount of such benefits.
(i) USE OF EXISTING RESOURCES.—The Attorney
General should use funds and resources available to the
Attorney General to carry out the functions of the Attor-
ney General under this Act.
(j) REGULATORY AUTHORITY.—The Attorney Gen-
eral may issue regulations necessary to carry out this Act.
(k) TIME OF ISSUANCE OF REGULATIONS, GUIDE-
LINES, AND PROCEDURES.—The initial regulations, guide-
lines, and procedures to carry out this Act shall be issued
not later than 90 days after the date of the enactment
of this Act.
(l) JUDICIAL REVIEW.—An individual whose claim
for compensation under this Act is denied may seek judi-
cial review solely in a district court of the United States.
The court shall review the denial on the administrative
record and shall hold unlawful and set aside the denial
if the denial is arbitrary, capricious, an abuse of discre-
tion, or otherwise not in accordance with law.
SEC. 6. LIMITATION ON TRANSFER AND NUMBER OF
CLAIMS.
(a) CLAIMS NOT ASSIGNABLE OR TRANSFERABLE.—
A claim under this Act shall not be assignable or transfer-
able.
(b) 1 CLAIM WITH RESPECT TO EACH VICTIM.—
With respect to each individual described in subparagraph
(A), (B), or (C) of section 4(1), the Attorney General may
not pay more than 1 claim filed to receive compensation
under this Act for the harm suffered by the individual.
SEC. 7. LIMITATIONS ON CLAIMS.
The Attorney General may not pay any claim filed
under this Act unless the claim is filed within 3 years after
the date of the enactment of this Act.
SEC. 8. CERTAIN CLAIMS NOT AFFECTED BY PAYMENT.
A payment made under section 5(c)(1) shall not be
considered as any form of compensation, or reimburse-
ment for a loss, for purposes of imposing liability on the
individual receiving the payment, on the basis of such re-
ceipt, to repay any insurance carrier for insurance pay-
ments or to repay any person on account of worker’s com-
pensation payments. A payment under this Act shall not
affect any claim against an insurance carrier with respect
to insurance or against any person with respect to work-
er’s compensation.
SEC. 9. LIMITATION ON AGENT AND ATTORNEY FEES.
Notwithstanding any contract, the representative of
an individual may not receive, for services rendered in con-
nection with the claim of an individual under this Act,
more than 5 percent of a payment made under this Act
on the claim. Any such representative who violates this
section shall be fined not more than $50,000.
SEC. 10. DEFINITIONS.
For purposes of this Act:
(1) The term ‘‘AIDS’’ means acquired immune
deficiency syndrome.
(2) The term ‘‘Fund’’ means the Ricky Ray
Hemophilia Relief Fund.
(3) 
The 
term 
‘‘HIV’’ 
means 
human
immunodeficiency virus.
Æ