May 26, 2005 – 3:44 p.m.

By Seth Stern, CQ Staff

The Senate Judiciary Committee approved legislation Thursday designed to create a $140 billion trust fund to compensate claimants exposed to asbestos, but three Republicans who voted for the bill made clear they would not support the current version on the floor.

The measure (S 852) was approved 13-5. All five no votes were cast by Democrats.

All of the committee’s Republicans voted yes, but three ­ Tom Coburn of Oklahoma, John Cornyn of Texas and Jon Kyl of Arizona ­ made clear they voted yes only to advance the bill out of committee and say significant changes must be made to the bill during consideration on the Senate floor.

The bill’s emergence from committee represents a victory for Arlen Specter R-Pa., who had struggled for months to come up with a bill acceptable to a majority of the committee as well as insurers and companies that would pay for it. Just days ago, it seemed as if the bill might languish because of the Senate showdown over judicial nominations.

After the vote, ranking committee Democratic Patrick J. Leahy of Vermont who signed on earlier this year as a key backer, compared their accomplishment to “steering a ship through a minefield during a hurricane.”

Dozens of companies have been driven into bankruptcy because of lawsuits brought by people exposed to asbestos, a fire-resistant, cancer-causing substance that was used in products such as insulation and automobile brake linings. The trust fund would be financed mostly through contributions from defendant companies and the insurance industry, which would be shielded from liability.

There remain significant concerns about the bill among both conservatives, who fear taxpayers will wind up footing the bill if the fund becomes insolvent, and groups on the left that argue the bill does not provide adequate or timely compensation to victims.

The AFL-CIO wrote in a May 24 letter to Specter and Leahy that it has “grave concerns” about many of the decisions made earlier markups during which dozens of amendments were made to the bill. Similarly, the American Insurance Association said in a statement after the vote that it could not support the bill in its current form.

Prior to final approval, the committee adopted by voice vote a manager’s package of 21 amendments, including compromise language designed to satisfy Kyl’s concerns about how the fund’s startup is structured.  

 *** POSTED MAY 26, 2005 ***