Washington, DC, May 13--The outlook for a Senate bill that would remove asbestos litigation from the courts improved Thursday after two days of committee action clinched a crucial Democratic vote.
Sen. Dianne Feinstein, D-Calif., threw her support behind the bill again after the Senate Judiciary Committee agreed to an amendment she offered that would compensate certain terminally ill victims of asbestos-related cancers within 30 days. Feinstein said leaving out this expedited compensation provision from the legislation would nix her support.
The asbestos bill would set up a $140 billion trust fund, paid into by insurers and manufacturers currently facing mounting asbestos lawsuits. Instead of filing lawsuits in the courts, asbestos injury sufferers would submit claims to the federal fund and then be paid after demonstrating medical criteria of exposure to the chemical.
Five swing votes remain on the committee, and committee Chairman Arlen Specter, R-Pa., continued his strategy of open debate on every amendment. But Specter had no illusions about the urgency of the process.
Majority leader Bill Frist, R-Tenn., "is very anxious to have the opportunity to put this on the Senate floor in June," Specter said. He asked lawmakers to prioritize their suggested amendments, which have reached the triple digits, and prepare for a vote by the end of the month.
One undecided and outspoken Republican noticeably softened his objections to the trust fund.
"If they improve the bill, I will vote" in favor, said Sen. Tom Coburn, R-Okla. He said the bill's medical standards were too vague and would lead false liability claims to bankrupt the fund. But he added that "I'm not against the trust fund, I'm against a trust fund that will cost" more than advertised.
Two other significant amendments were added to the bill this week. The first was a military exception to a ban on future use of asbestos. The other would allow any companies still paying sufferers as part of a court verdict to claim deductions on their future contributions to the trust fund.
The formula to determine how businesses will contribute to the fund is still a touchy matter for some senators. Feinstein has said she will continue her push to publicize the complex contribution formula, but consumer group Public Citizen beat her to the punch.
Large companies such as Dow Chemical (DOW: news, chart, profile) , Honeywell (HON: news, chart, profile) and other Fortune 500 companies would enjoy huge savings, thanks to the bill's yearly cap of $27.5 million on corporate payments into the trust fund, according to a Public Citizen study released earlier this week.
"What it's about is: Are companies paying their fair share?" asked Frank Clemente, director of Public Citizen's congressional unit. "It's a problem ... is there enough money here to compensate the victims?"
Public Citizen found that companies with low annual revenue - between $50 million and $200 million - would be required to pay the trust fund only $11 million less per year than companies with annual revenue in the hundreds of billions.
More amendments to the asbestos litigation bill will be considered May 18.
