To provide indemnification and liability protection to, and facilitate the procurement of insurance for, contractors responding to the World Trade Center attacks.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``World Trade Center Worker and 
Contractor Protection Act''.

SEC. 2. INDEMNIFICATION, LIABILITY LIMITATION, AND FACILITATION OF 
              INSURANCE PROCUREMENT FOR CONTRACTORS FOR THE RESPONSE TO 
              THE WORLD TRADE CENTER ATTACKS.

    (a) In General.--Regardless of any other provisions of law or any 
contract, the United States Government shall, subject to the 
limitations contained in this section, indemnify Contractors as defined 
herein against claims as defined in this section.
    (b) Coordination With Insurance.--Indemnification under this 
section shall apply only to the extent that a claim is not otherwise 
covered and compensable by insurance procured for the risks involved in 
the response to the World Trade Center attacks. However, all or part of 
the indemnification under this section may, pursuant to the terms of 
insurance procured after the effective date of this Act, be payable 
before such insurance is applicable.
    (c) Limitation in Case of Willful Misconduct or Lack of Good 
Faith.--When a claim arises from willful misconduct or lack of good 
faith, intended to cause injury to persons or damage to property, on 
the part of any of the Contractors' principal officials, the Contractor 
shall not be indemnified.
    (d) Control of Claims Management.--The Contractor shall, to the 
extent that such claim is reasonably expected to involve 
indemnification under this section--
            (1) promptly notify the Federal Emergency Management Agency 
        of any claim against the Contractor that may reasonably be 
        expected to involve indemnification under this section;
            (2) immediately furnish to the United States Government 
        copies of all pertinent papers Contractor receives;
            (3) furnish evidence or proof of any claim covered by this 
        section in the manner and form the United States Government 
        requires; and
            (4) comply with the United States Government's directions 
        and execute any authorizations required in connection with 
        settlement or defense of claims or actions.
    (e) Procedure.--The United States Government may direct, control, 
or assist in settling or defending any claim to the extent that such 
claim involves indemnification under this section.
    (f) Payment Authority.--This section constitutes budget authority 
in advance of appropriations Acts and represents the obligation of the 
United States Government to provide for the payment of amounts for 
indemnification under this section.
    (g) Limitation on Liability and Indemnity.--Notwithstanding any 
other provision of law or contract, the total aggregate liability of 
Contractors for claims shall not exceed $350,000,000. Insurance 
coverage shall not increase this limit of liability and shall reduce 
the indemnity commitment provided by this section. Insurance coverage 
procured for Contractors after the effective date of this Act may, by 
its terms, be payable for claims at liability coverage levels below the 
total aggregate liability limit. This limit of liability shall not 
preclude a Contractor from being paid or reimbursed for work performed, 
services provided, or materials and equipment utilized or consumed.
    (h) Litigation Management.--Any claims for damages against a 
Contractor that may result in Federal indemnification as provided in 
this section shall be brought under section 408(b) of the Air 
Transportation Safety and System Stabilization Act (49 U.S.C. 40101 
note), as amended by section 201(b)(2) of the Aviation and 
Transportation Security Act (Public Law 107-71), and shall be subject 
to the following limits:
            (1) No punitive damages may be awarded except in case of 
        willful misconduct, nor shall any party be liable for interest 
        prior to the judgment. No punitive damages may be awarded 
        against the United States Government.
            (2) Each Contractor against whom a claim is brought shall 
        be liable only for the amount of damages allocated to such 
        Contractor in direct proportion to the percentage of 
        responsibility of the Contractor for causing the harm to the 
        plaintiff.
    (i) Exclusion.--Nothing in this section shall in any way limit the 
liability of any person who--
            (1) attempts to commit, knowingly participates in, aids and 
        abets, or commits any act of terrorism, or any criminal act 
        related to or resulting from such act of terrorism; or
            (2) participates in a conspiracy to commit any such act of 
        terrorism or any such criminal act.
    (j) Right of Subrogation.--The United States shall have the right 
of subrogation with respect to any claim paid by the United States that 
results in federal indemnification as provided in this section. Such 
right of subrogation shall not be applied against a Contractor.
    (k) Definitions.--In this section:
            (1) The term ``response to the World Trade Center attacks'' 
        means all acts or failures to act by Contractors or volunteers 
        in connection with their work at the World Trade Center site on 
        the rescue and evacuation, recovery of bodies, clean up, 
        environmental remediation, removal of debris, transportation of 
        debris, control of pollutants, securing of public and private 
        property, and protection of the public health, safety and 
        welfare; provided that such term shall not include efforts to 
        build or rebuild new buildings or other activities on the site 
        of the World Trade Center attacks occurring subsequent to the 
        foregoing acts or failures to act.
            (2) The term ``Contractor'' means any person or entity 
        involved in providing work, labor, equipment, materials, or 
        services in connection with the response to the World Trade 
        Center attacks, including--
                    (A) contractors, subcontractors at any tier, 
                construction managers, engineers, design professionals, 
                and their parents, affiliates, officers, directors, 
                partners, and employees; and
                    (B) the persons or entities, including States or 
                political subdivisions thereof, contracting for such 
                work, labor, equipment, materials or services.
            (3) The term ``Contractor's principal officials'' means 
        directors, officers, managers, superintendents, or other 
        representatives supervising or directing--
                    (A) all or substantially all of the Contractor's 
                business;
                    (B) all or substantially all of the Contractor's 
                operations at any one plant or separate location in 
                which work in response to the World Trade Center attack 
                is being performed; or
                    (C) a separate and complete major industrial 
                operation in which work in response to the World Trade 
                Center attack is being performed.
            (4) The term ``claims'' or ``claim'' shall mean claims, 
        actions, losses, settlements or damages (including reasonable 
        expenses of litigation and defense thereof) arising out of or 
        resulting from the response to the World Trade Center attacks, 
        whether arising prior to or subsequent to the enactment of this 
        legislation, for death, personal injury, or loss of, damage to, 
        or loss of use of property.
    (l) Severability.--If any provision of this section, or the 
application hereof to any person or circumstances, is held invalid, the 
remainder of this section, and the application of such provision to 
other persons or circumstances, shall not be affected thereby.

Summary: World Trade Center Worker and Contractor Protection Act - Provides for Federal indemnification and liability protection to contractors or volunteers in connection with their response to the World Trade Center attacks by undertaking rescue and evacuation, recovery of bodies, clean up, environmental remediation, removal and transportation of debris, control of pollutants, securing of public and private property, and protection of the public health, safety and welfare.