Washington, DC, May 27--Legislation to create a $140 billion asbestos compensation fund was approved by the U.S. Senate Judiciary Committee on Thursday, but there were immediate warnings it could face trouble on the Senate floor.
In a 13-5 vote, the committee backed the bill aimed at eliminating asbestos lawsuits and creating a fund to be financed by companies facing asbestos suits and their insurers. Victims could no longer sue, but would go to the fund for compensation.
Three members of the Senate's Republican majority, who supported clearing the bill from committee, warned they would insist on changes before voting for it on the Senate floor.
"I could not support this bill on the floor if it does not change," said Sen. John Cornyn of Texas. Arizona's Jon Kyl and Oklahoma's Tom Coburn echoed the sentiment.
"With the medical criteria we have here today, this fund will cost $60 billion a year (for claims)," Coburn warned. Kyl has expressed concerns about the fund's solvency, while Cornyn is worried about how the expense would be allocated among companies.
Asbestos fibers were used in building materials, auto parts and other products for decades, but are linked to cancer and other diseases.
The stocks of companies facing asbestos liabilities, which had risen strongly in recent days as the bill neared committee approval, closed mixed in trading following the vote.
Sen. Arlen Specter, the Pennsylvania Republican who chairs the Judiciary Committee, sponsored the legislation with Sen. Patrick Leahy of Vermont, the panel's ranking Democrat.
Specter said he knew the bill faced continued challenges, noting senators had started trying two decades ago to find a solution to rising asbestos claims. Many affected interest groups, such as insurers and some labor unions, oppose the bill in its current form.
"We don't underestimate the difficulty of getting the bill through," Specter said.
He said the measure had White House support. President George W. Bush has called for curbing asbestos suits, saying they are clogging the courts and hurting the economy.
Three Democrats joined the 10 Republicans in voting for the bill, and Leahy said he thought it would pass the Senate "with considerable support."
Democrats in the last Congress blocked a previous committee-cleared version from being brought up on the Senate floor. But Leahy said: "This is a far, far better bill, and has a far better chance of getting somewhere."
Some other Democrats on the committee were strongly opposed. Delaware Democratic Sen. Joseph Biden called the measure "a pig in a poke," saying there was not enough information about what companies would pay into the fund.
