RICKY RAY HEMOPHILIA RELIEF ACT OF 1998

PUBLIC LAW 105–369—NOV. 12, 1998

112 STAT. 3368 PUBLIC LAW 105–369—NOV. 12, 1998

Public Law 105–369

105th Congress

An Act

To provide for compassionate payments with regard to individuals with blood-

clotting disorders, such as hemophilia, who contracted human immunodeficiency

virus due to contaminated antihemophilic factor, and for other purposes.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) S

HORT

ITLE

.—This Act may be cited as the ‘‘Ricky Ray

Hemophilia Relief Fund Act of 1998’’.

(b) T

ABLE OF

ONTENTS

.—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 PAYMENTS IN

HEMOPHILIA-CLOTTING-FACTOR SUIT UNDER THE MEDICAID AND SSI

PROGRAMS

Sec. 201. Treatment of certain private settlement payments in hemophilia-clotting-

factor suit under the Medicaid and SSI programs.

TITLE I—HEMOPHILIA RELIEF FUND

SEC. 101. RICKY RAY HEMOPHILIA RELIEF FUND.

(a) E

STABLISHMENT

.—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 Sec-

retary of the Treasury.

(b) I

NVESTMENT OF

MOUNTS IN

UND

.—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.

VAILABILITY OF

UND

.—Amounts in the Fund shall be

available only for disbursement by the Secretary of Health and

Human Services under section 103.

(d) T

ERMINATION

.—The Fund shall terminate upon the expira-

tion of the 5-year period beginning on the date of the enactment

42 USC 300c–22

note.

Ricky Ray

Hemophilia

Relief Fund Act

of 1998.

42 USC 300c–22

note.

Nov. 12, 1998

[H.R. 1023]

112 STAT. 3369PUBLIC LAW 105–369—NOV. 12, 1998

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 liquidated, 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) A

UTHORIZATION OF

PPROPRIATIONS

.—There is authorized

to be appropriated to the Fund to carry out this title $750,000,000.

SEC. 102. COMPASSIONATE PAYMENT RELATING TO INDIVIDUALS

WITH BLOOD-CLOTTING DISORDERS AND HIV.

(a) I

ENERAL

.—If the conditions described in subsection (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:

(1) The individual has any form of blood-clotting 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 individual

described in paragraph (1) and was the lawful spouse of

the individual at any time after a date, within the period

described in such subparagraph, on which the individual

was treated as described in such paragraph and through

medical documentation can assert reasonable certainty of

transmission of HIV from individual 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) C

ONDITIONS

.—The conditions described in this subsection

are, with respect to an individual, as follows:

(1) S

UBMISSION OF MEDICAL DOCUMENTATION OF HIV

INFECTION

.—The individual submits to the Secretary written

medical documentation that the individual has an HIV infec-

tion.

(2) P

ETITION

.—A petition for the payment is filed with

the Secretary by or on behalf of the individual.

(3) D

ETERMINATION

.—The Secretary determines, in

accordance with section 103(b), that the petition meets the

requirements of this title.

SEC. 103. DETERMINATION AND PAYMENT.

(a) E

STABLISHMENT OF

ILING

ROCEDURES

.—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 include written medical documentation that the

relevant individual described in section 102(a)(1) has (or had) a

blood-clotting disorder, such as hemophilia, and was treated as

described in such section.

(b) D

ETERMINATION

.—For each petition filed under this title,

the Secretary shall determine whether the petition meets the

requirements of this title.

42 USC 300c–22

note.

42 USC 300c–22

note.

112 STAT. 3370 PUBLIC LAW 105–369—NOV. 12, 1998

AYMENT

.—

(1) I

N GENERAL

.—To the extent there are sufficient amounts

in the Fund to cover each payment, the Secretary shall pay,

from the Fund, each petition that the Secretary determines

meets the requirements of this title in the order received.

(2) P

AYMENTS IN CASE OF DECEASED INDIVIDUALS

.—

(A) I

N GENERAL

.—In the case of an individual referred

to in section 102(a) who is deceased at the time that pay-

ment 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 payment, the payment shall

be made to such surviving spouse.

(ii) If the individual is not survived by a spouse

described in clause (i), the payment 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 the payment.

(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) F

ILING OF PETITION BY SURVIVOR

.—If an individual

eligible for payment under section 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).

EFINITIONS

.—For purposes of this paragraph:

(i) The term ‘‘spouse’’ means an individual who

was lawfully married to the relevant individual at

the time of death.

(ii) The term ‘‘child’’ includes a recognized 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 fathers and

mothers through adoption.

(3) T

IMING OF PAYMENT

.—The Secretary may not make

a payment on a petition under this title before the expiration

of the 120-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.

(d) A

CTION ON

ETITIONS

.—The Secretary shall complete the

determination required by subsection (b) regarding a petition not

later than 120 days after the date the petition is filed under

this title.

(e) H

UMANITARIAN

ATURE OF

AYMENT

.—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,

112 STAT. 3371PUBLIC LAW 105–369—NOV. 12, 1998

however, when accepted by or on behalf of the individual, be in

full satisfaction of all such claims by or on behalf of that individual.

(f ) A

DMINISTRATIVE

OSTS

AID

ROM

UND

.—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 subsection (c)(1).

(g) T

ERMINATION OF

UTIES OF

ECRETARY

.—The duties of the

Secretary under this section shall cease when the Fund terminates.

(h) T

REATMENT OF

AYMENTS

NDER

THER

AWS

.—A payment

under subsection (c)(1) to an individual—

(1) shall be treated for purposes of the Internal Revenue

Code of 1986 as damages described in section 104(a)(2) of

such Code;

(2) shall not be included as income or resources for purposes

of determining the eligibility of the individual 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 payment or pay-

ment 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

respect to such benefits (including the Federal or State govern-

ments or any entity that provides such benefits under a con-

tract).

(i) R

EGULATORY

UTHORITY

.—The Secretary may issue

regulations necessary to carry out this title.

( j) T

IME OF

SSUANCE OF

ROCEDURES

.—The Secretary shall,

through the promulgation of appropriate regulations, guidelines,

or otherwise, first establish the procedures 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 NUMBER OF

PETITIONS.

(a) R

IGHTS

SSIGNABLE OR

RANSFERABLE

.—Any right

under this title shall not be assignable or transferable.

(b) O

ETITION

ITH

ESPECT TO

ACH

ICTIM

.—With

respect to each individual described in paragraph (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 respect to

any petition filed under this title unless the petition 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 reimbursement for a loss, for

purposes of imposing liability on the individual receiving the pay-

ment, on the basis of such receipt, to repay any insurance carrier

for insurance payments or to repay any person on account of work-

er’s compensation payments. A payment under this title shall not

affect any claim against an insurance carrier with respect to insur-

ance or against any person with respect to worker’s compensation.

42 USC 300c–22

note.

42 USC 300c–22

note.

42 USC 300c–22

note.

112 STAT. 3372 PUBLIC LAW 105–369—NOV. 12, 1998

SEC. 107. LIMITATION ON AGENT AND ATTORNEY FEES.

Notwithstanding any contract, the representative of an individ-

ual may not receive, for services rendered in connection 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 immunodeficiency virus.

(4) Unless otherwise provided, the term ‘‘Secretary’’ means

Secretary of Health and Human Services.

TITLE II—TREATMENT OF CERTAIN

PAYMENTS IN HEMOPHILIA-CLOT-

TING-FACTOR SUIT UNDER THE SSI

PROGRAM

SEC. 201. TREATMENT OF CERTAIN PAYMENTS IN HEMOPHILIA-CLOT-

TING-FACTOR SUIT UNDER THE MEDICAID AND SSI PRO-

GRAMS.

(a) P

RIVATE

AYMENTS

.—

(1) I

N GENERAL

.—Notwithstanding any other provision of

law, the payments described in paragraph (2) shall not be

considered income or resources 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) P

RIVATE PAYMENTS DESCRIBED

.—The payments

described in this subsection are—

(A) payments made from any fund established

pursuant to a class settlement in the case 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 settle-

ment referred to in subparagraph (A); and

(ii) that is signed by all affected parties 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) G

OVERNMENT

AYMENTS

.—

(1) I

N GENERAL

.—Notwithstanding any other provision of

law, the payments described in paragraph (2) shall not be

42 USC 300c–22

note.

42 USC 300c–22

note.

42 USC 300c–22

note.

112 STAT. 3373PUBLIC LAW 105–369—NOV. 12, 1998

LEGISLATIVE HISTORY—H.R. 1023:

HOUSE REPORTS: No. 105–465, Pt. 1 (Comm. on the Judiciary) and Pt. 2 (Comm.

on Ways and Means).

CONGRESSIONAL RECORD, Vol. 144 (1998):

May 19, considered and passed House.

Oct. 21, considered and passed Senate.

considered income or resources in determining eligibility for,

or the amount of supplemental security income benefits under

title XVI of the Social Security Act.

(2) G

OVERNMENT PAYMENTS DESCRIBED

.—The payments

described in this subsection are payments made from the Fund

established pursuant to section 101 of this Act.

Approved November 12, 1998.