II
Calendar No. 707
105TH CONGRESS
2D SESSION
H. R. 1023
IN THE SENATE OF THE UNITED STATES
MAY 20, 1998
Received
JUNE 16, 1998
Read twice and referred to the Committee on Labor and Human Resources
OCTOBER 7 (legislative day, OCTOBER 2), 1998
Reported by Mr. JEFFORDS, without amendment
AN ACT
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 antihemophilic factor, and for other pur-
poses.
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’’.
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(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
disorders 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.
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(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
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 $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
individual who has an HIV infection and who is described
in one of the following paragraphs:
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(1) The individual has any form of blood-clot-
ting 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
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
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
certainty of transmission of HIV from individ-
ual 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
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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 indi-
vidual.
(3) DETERMINATION.—The Secretary deter-
mines, 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 in-
dividual described in section 102(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.—To the extent there are suf-
ficient amounts in the Fund to cover each payment,
the Secretary shall pay, from the Fund, each peti-
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tion that the Secretary determines meets the re-
quirements 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
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.
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(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 sec-
tion 102(a) dies before filing a petition under
this title, a survivor of the individual may file
a petition for payment under this title on behalf
of the individual 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 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
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before the expiration of the 120-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.
(d) ACTION
ON PETITIONS.—The Secretary shall
complete the determination required by subsection (b) re-
garding 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 employment 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 indi-
vidual, 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 sub-
section (c)(1).
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(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 Code of 1986 as damages described in sec-
tion 104(a)(2) of such Code;
(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
from, or subject to any reduction because of receipt
of, any such payment; and
(3) shall not be treated as a third party pay-
ment or payment in relation to a legal liability with
respect to such benefits and shall not be subject
(whether by subrogation or otherwise) to recovery,
recoupment, reimbursement, or collection with re-
spect to such benefits (including the Federal or
State governments or any entity that provides such
benefits under a contract).
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(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 reg-
ulations, 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) ONE PETITION WITH RESPECT TO EACH VIC-
TIM.—With respect to each individual described in para-
graph (1), (2), or (3) of section 102(a), the Secretary may
not make payment with respect to more than one petition
filed in respect 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 peti-
tion 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 reimburse-
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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 title 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. 107. 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 petition of an individual under this title,
more than 5 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
Hemophilia Relief Fund.
(3) The term ‘‘HIV’’ means human immuno-
deficiency virus.
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(4) Unless otherwise provided, the term ‘‘Sec-
retary’’ means Secretary of Health and Human
Services.
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 described in para-
graph (2) shall not be considered income or re-
sources in determining 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 pay-
ments described in this subsection are—
(A) payments made from any fund estab-
lished pursuant to a class settlement in the case
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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 subpara-
graph (A); and
(ii) that is signed by all affected par-
ties 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
representative 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 described in para-
graph (2) shall not be considered income or re-
sources in determining eligibility for, or the amount
of supplemental security income benefits under title
XVI of the Social Security Act.
(2) GOVERNMENT PAYMENTS DESCRIBED.—The
payments described in this subsection are payments
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made from the fund established pursuant to section
101 of this Act.
Passed the House of Representatives May 19, 1998.
Attest:
ROBIN H. CARLE,
Clerk.
Calendar No. 707
105TH CONGRESS
2D SESSION
H. R. 1023
AN ACT
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
antihemophilic factor, and for other purposes.
OCTOBER 7 (legislative day, OCTOBER 2), 1998
Reported without amendment