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
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 1997’’.
(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. Findings and purpose.
Sec. 102. Ricky Ray Hemophilia Relief Fund.
Sec. 103. Compassionate payment relating to individuals with blood-clotting
disorders and HIV.
Sec. 104. Determination and payment.
Sec. 105. Limitation on transfer of rights and number of petitions.
Sec. 106. Time limitation.
Sec. 107. Certain claims not affected by payment.
Sec. 108. Limitation on agent and attorney fees.
Sec. 109. 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. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds that—
(1) approximately one-half 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) blood-clotting agents (called ‘‘antihemophilic
factor’’) used in the treatment of blood-clotting dis-
orders, such as hemophilia, have been manufactured
from the blood plasma of 1,000 to 20,000 (or more)
donors, placing persons with hemophilia at particu-
larly high risk for HIV and other blood-borne dis-
eases;
(3) the Centers for Disease Control, in a weekly
morbidity and mortality report (MMWR) issued on
July 16, 1982, first identified individuals with hemo-
philia who had contracted illnesses now known to be
associated with HIV infection and suggested the
possible transmission of an infectious agent through
blood-clotting agents;
(4) the National Blood Policy, published by the
Secretary of Health, Education, and Welfare on Sep-
tember 10, 1974, outlined the authority of the Fed-
eral Government, through the Public Health Service,
to protect the safety of the blood supply and blood-
clotting agents sold in this country and an imple-
mentation plan to carry out this policy;
(5) the process by which antihemophilic factor
is commercially manufactured, marketed, and sold
for use by people with blood-clotting disorders, such
as hemophilia, is governed by Federal regulations;
(6) in its review of the events surrounding the
HIV infection of thousands of people with blood-clot-
ting disorders, such as hemophilia, a 1995 study, en-
titled ‘‘HIV and the Blood Supply’’, of the Institute
of Medicine found ‘‘a failure of leadership and inad-
equate institutional decision-making processes’’ in
the system responsible for ensuring blood safety,
concluding that ‘‘a failure of leadership led to less
than effective donor screening, weak regulatory ac-
tions and insufficient communication to patients
about the risk of AIDS’’;
(7) 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 ill-
nesses;
(8) 26 other countries have established govern-
ment compensation programs to assist individuals
with blood-clotting disorders, such as hemophilia,
who are infected with HIV;
(9) Ricky Ray was born with hemophilia and,
like his 2 younger brothers and thousands of others,
became infected with the deadly HIV through the
use of contaminated blood-clotting products;
(10) Ricky Ray and his family have brought na-
tional attention to the suffering of the individuals
with blood-clotting disorders, such as hemophilia,
and their families who have been devastated by HIV;
and
(11) 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 title to estab-
lish a procedure to make compassionate payments to indi-
viduals who were infected with HIV after treatment, dur-
ing the period beginning in 1982 and ending in 1987, with
contaminated blood products.
SEC. 102. 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 104.
(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 title $900,000,000.
SEC. 103. COMPASSIONATE PAYMENT RELATING TO INDI-
VIDUALS WITH BLOOD-CLOTTING DISORDERS
AND HIV.
(a) IN GENERAL.—Any individual who has an HIV
infection and who is described in one of the following para-
graphs shall receive $125,000 from amounts available in
the Fund if the conditions described in subsection (b) are
met:
(1) The individual has any form of blood-clot-
ting disorder, such as hemophilia, and was treated
with blood-clotting agents (in the form of blood com-
ponents or blood products) 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
described 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
clude written medical documentation that the relevant in-
dividual described in section 103(a)(1) has (or had) a
blood-clotting disorder, such as hemophilia, and was treat-
ed as described in such section.
(b) DETERMINATION.—For each petition filed under
this title, the Secretary shall determine whether the peti-
tion meets the requirements of this title.
(c) PAYMENT.—
(1) IN
GENERAL.—The Secretary shall pay,
from amounts available in the Fund, each petition
that the Secretary determines meets the require-
ments of this title.
(2) PAYMENTS IN CASE OF DECEASED INDIVID-
UALS.—
(A) IN GENERAL.—In the case of an indi-
vidual referred to in section 103(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 to
the estate 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 PETITION BY ESTATE OR
SURVIVOR.—If an individual eligible for pay-
ment under section 103(a) dies before filing a
petition under this title—
(i) the estate of the individual, if such
an estate exists, may file a petition for
payment under this title on behalf of the
individual; or
(ii) if no such estate exists, a survivor
of the individual may file a petition 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.
(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
before the expiration of the 90-day period beginning
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 Secretary 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 Sec-
retary 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 Secretary determines
that the individual is entitled to receive
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 PETITIONS.—The Secretary shall
complete the determination required by subsection (b) re-
garding a petition not later than 90 days after the date
the petition is filed under this title.
(e) PAYMENT
IN FULL SETTLEMENT
OF CLAIMS
AGAINST UNITED STATES.—Payment under this title,
when accepted by an individual described in section 103(a)
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 or against any officer, employee, or agent thereof
acting within the scope of employment or agency (but not
against any other private person or entity) that relate to
an HIV infection arising from treatment, at any time dur-
ing the period beginning on July 1, 1982, 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 Secretary in carrying
out this title may be paid from the Fund or set off against,
or otherwise deducted from, any payment made under sub-
section (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 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;
(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, and such benefits shall not
be secondary to, conditioned upon reimbursement