Hurricane Katrina Reconstruction and Displaced Worker Assistance Act of 2005

Mr. President, in the wake of Hurricane Katrina, the Senate is faced with a daunting but absolutely crucial task. How can Congress best respond to the horrific damage caused by this disaster? I want to express my full support to the people from all of the affected regions in Louisiana, Mississippi, and Alabama and their congressional delegations. In this time of desperate need, we all must pull together and do everything we can to help.

We can see the devastating effects of the hurricane and flooding on our television screens every night. It will take years to rebuild the affected areas. In the meantime, the residents and small businesses in those areas have suffered catastrophic losses. Some will undoubtedly, through no fault of their own, have to file for bankruptcy sometime in the future. The bankruptcy system is an important safety net for people who suffer this kind of devastation. In this country, we do not sentence people who have been through a disaster of this type to a lifetime of financial servitude. Bankruptcy lets them get a fresh start. And a fresh start is what so many of the relief efforts going on are all about.

As my colleagues are aware, Congress earlier this year enacted major changes to the Bankruptcy Code. The Bankruptcy Abuse Prevention and Consumer Protection Act (``BAPCPA'') was the first major overhaul of the bankruptcy system in more than 25 years. Most provisions of the new law will become effective on October 17, 2005, six months after enactment. Any bankruptcy case filed before that date is still subject to current law.

We do not yet know how many families affected by this disaster will end up filing for bankruptcy. A study just released a few days ago by Professor Bob Lawless, a law professor at the University of Nevada, indicates that bankruptcy filings increase significantly in areas where natural disasters occur. Professor Lawless looked at 18 hurricanes and tropical storms since 1980 and the rate of bankruptcy filings in the States where the storms made landfall compared to the surrounding States and the rest of the country. He looked at the effects in the first, second and third year after the event.

According to this study, bankruptcy filings climbed in landfall States at more than 1\1/2\ times the pace of unaffected States and remained stuck at that rate even three years later. Given the enormous impact of this storm, we can expect a similar if not greater, increase in filings. And this new influx of filings will occur just as the new law is going into effect. Katrina victims will in essence be guinea pigs, testing the new provisions with the most desperate of circumstances.

The new bankruptcy law makes it significantly more difficult and complicated to file for bankruptcy. No one disputes that. It was intended to weed out abusers of the system. It contains new documentation requirements and the so-called ``means test'' which is a fairly rigid formula designed to identify debtors who really can continue to pay their debts and shouldn't get a discharge.

Everyone in the Senate knows that I strongly opposed the BAPCPA and tried very hard to amend it to make it less onerous for good faith debtors. But my goal now is not to try to undermine or reopen the new law, but simply to make sure that it doesn't compound the hardship faced by victims of Hurricane Katrina and other natural disasters. That is what the bill I will introduce today, the Hurricane Katrina Bankruptcy Relief and Community Protection Act of 2005, aims to do.

This bill first deals directly with the fact that the new law is scheduled to take effect only a month and a half from now, when the victims of Katrina will still be in the initial stages of putting their lives back together. I believe the best way to handle this extraordinary situation is to give Katrina victims a grace period during which the old bankruptcy law, which has essentially been in effect for 27 years, will still apply to their cases. The bill provides that cases filed within one year of the effective date of the new law by people who lived in the natural disaster area declared by the President will be handled under the law in effect on August 29, 2005, the date of the hurricane. This provision will mean that all the complicated work to apply and interpret the new law that will take place in the first year after it becomes effective will not affect the cases of the victims of Hurricane Katrina.

I understand that some may argue that the new law contains adequate safeguards and judicial discretion to deal with the concerns I have raised. But we can't know that for sure at this point. At the very least, there will be litigation and disagreement over how some provisions will be interpreted. Those issues will be settled by the courts all across the country, and that process will not be affected by this bill. But Katrina's victims should not be the test cases. Giving them a year to proceed under the old law seems entirely reasonable.

Providing this added grace period also addresses the fact that some of the hurricane victims might have filed their petitions before October 17 were it not for the hurricane. These people have been deprived of that right, which Congress provided in the new law itself, by a natural disaster. Given all they are now going through, we should give them adequate time to take care of their most immediate needs before closing the door on their ability to file for bankruptcy under the old law. A one year grace period should be sufficient, and seems fair.

Professor Lawless's study indicates that the financial effects of a disaster like Katrina last for more than a year. And of course, there will be future disasters, perhaps some as grave as this one. I believe we need to take a close look at the new bankruptcy law and make sure that disaster victims are treated fairly. There is simply no justification for applying provisions designed to stop abuse of the system to people who have been through this kind of disaster. Therefore, the bill makes a number of other amendments to the new law that will apply not only to Katrina victims who file for bankruptcy after the one year grace period is over but to victims of other natural disasters. Let me describe some of those provisions.

First, the bill builds on an exemption to the means test that applies to disabled veterans and simply adds victims of natural disasters to that exemption. No person driven to bankruptcy by a natural disaster should have a case dismissed or converted to a Chapter 13 filing under the means test.

The bill also exempts from the definition of income any payments from FEMA, the Red Cross, or other disaster relief funds. Whatever money people receive to help them survive the aftermath of a disaster should not be included in the calculation of how much they have available to satisfy their creditors. Generous citizens around the country are making contributions to make sure disaster victims are fed and clothed and their homes rebuilt, not to give more money to the credit card companies.

The bill contains a provision to make clear that expenses incurred as a result of a disaster are considered reasonable expenses for purposes of the means test. The rigid IRS standards obviously don't include money to replace things that were lost in a hurricane, or pay for a hotel stay while a home is rebuilt.

Another provision of the new law that seems unfair to apply to victims of natural disasters requires that debtors seek credit counseling before they file for bankruptcy. The new law already includes a provision to exempt debtors who are on active duty military service overseas or who are incompetent or disabled if that status makes them unable to complete the requirement. Victims of natural disasters deserve a similar exemption. If they can't complete credit counseling because they live in a shelter with no access to the Internet or because they have no records for the credit counselor to evaluate, they shouldn't be prevented from filing for bankruptcy.

One of the most tragic effects of a natural disaster is homelessness. Millions of homes were destroyed by Katrina. People who lived in these homes will be in temporary shelters for months, but may eventually find apartments to live in in a new location. If they end up having to file for bankruptcy, that filing puts in place an automatic stay of any legal proceedings against them, including eviction proceedings for nonpayment of rent. The automatic stay allows debtors to get their affairs in order and catch up on their rent payments, but the new law makes it much easier for landlords to have the stay lifted. The prospect of a natural disaster victim being put out on the street during a bankruptcy proceeding should be chilling to all Americans. This bill will simply require landlords of natural disaster victims to seek a lifting of the stay without the expedited procedures and special treatment that the new law provides.

Another provision of the bill gives some extra relief to natural disaster victims from the fairly rigid deadlines that are established for filing certain paperwork in connection with a bankruptcy filing. This is a very reasonable step that simply recognizes that obtaining or filing the necessary tax returns, identity documents, documentation of income and other items may be significantly more difficult, or even impossible for a period of time, for natural disaster victims than it is for other debtors.

Finally, the bill also provides relief for small businesses that are put in dire financial condition by a natural disaster. The new law includes some very tight and unmovable deadlines for small businesses seeking to reorganize under Chapter 11. If we want to help as many businesses hit by disasters to survive as possible, we need to give the courts flexibility to extend those deadlines.

I know that many people in this body worked very hard over a period of many years to pass the BAPCPA. As much as we disagreed about the merits of that bill, I respect their hard work. But I truly hope that my colleagues will not let pride of authorship or the fact that they supported that bill stand in the way of providing desperately needed help to the victims of Hurricane Katrina and other natural disasters. The changes in this bill are modest and will apply to a relatively small number of people. I suppose some may argue that they are not absolutely necessary, but I believe, at the least, that a very good argument can be made that they are. Shouldn't we err on the side of helping people whose lives have been ripped apart? Shouldn't we take every precaution to make sure that the horror of a natural disaster is not compounded by a bankruptcy law that is too rigid or too harsh? I believe that is the least we can do in these circumstances.

I hope my colleagues will join me in supporting these modest but important changes to the law. I ask that the text of the bill be printed in the Record.

Mr. President, we have all watched in horror as the Gulf Coast has been struck by what could be the worst natural disaster in U.S. history, leaving unimaginable suffering in its wake. It is difficult to put into words how heartbroken we are for the Americans affected by Hurricane Katrina.

Brave souls everywhere are still searching for some family members, while trying to keep others alive and hopeful. We have seen the inspiring courage of the survivors and dedicated men and women working around the clock to help them.

Thousands of people have lost their lives. Far more have lost life as they know it--their families, their homes, their communities, and their jobs.

There has already been an increase in people filing for unemployment benefits due to Hurricane Katrina. And, the jobs that have been lost will be gone for a long time.

To help people who have lost their jobs because of this crisis, I am introducing the ``Hurricane Katrina Reconstruction and Displaced Worker Assistance Act of 2005.''

This legislation would give priority in awarding Federal contracts for the rebuilding efforts to those companies where workers displaced by Hurricane Katrina comprise at least 25 percent of the workforce fulfilling the contract. This will help provide jobs to those who have been severely affected by the hurricane.

We must show those who have suffered so much that their government will help them rebuild their lives. I urge my colleagues to support the bill.

Mr. President, today I am reintroducing a bill to provide help to State and local first responders in purchasing interoperable communications systems--so that everyone can talk to one another during an emergency.

This need has been glaringly apparent for over a decade now, but especially since the 2001 terrorist attacks. It was all the more evident in the aftermath of Hurricane Katrina.

The 9/11 Commission described the inability to communicate as ``a critical element'' at the World Trade Center and at the crash sites, where multiple agencies and multiple jurisdictions responded in September 2001. And yet four years after that attack, our first responders still cannot talk to each other.

Let me mention just one example from the areas affected by Hurricane Katrina.

National Guard members have compared communications capabilities in New Orleans unfavorably with those in Iraq. Ground commanders for New Orleans have been functioning without the ability to track the location of some units reporting to them. This is unacceptable.

Almost every community I visit in California--from big to small-- mentions the need for interoperable communications for first responders and the need for assistance from the federal government. California suffered from a lack of interoperable communications in the fall of 2003, when communities could not communicate with each other to convey what was happening with fires that were sweeping through the State, greatly complicating the response.

We need to provide funding so that State and local first responders can purchase the technology that makes interoperability possible. We need to do our job at the national level and provide our first responders with the resources to protect our communities in the case of a terrorist attack, natural disaster, or other emergency.

I have tried to get funds for interoperable communication systems as part of the Intelligence Bill, the Rail Security Bill, and the Homeland Security Appropriations Bill. The time to act is past. We need to get this done before the next disaster strikes, which is why I am reintroducing this bill.

My bill would authorize $300 million for each of the next 5 years to help State and local agencies improve existing communications systems or purchase new systems. This funding would help local agencies purchase equipment for real-time interoperable communication between first responders.

Guaranteeing that first responders will have the communications equipment necessary to respond to a future attack is exactly the kind of preemptive action we should have taken after 9/11 and should be taking now.

A report on the needs of first responders by Warren Rudman and Richard Clarke found that fixing this problem would cost $6.8 billion. My bill does not fund this all, but we need to do something.

This bill is an important step in fulfilling our federal responsibility to protect our citizens during emergencies. I urge my colleagues to support it.

Mr. President, for milions of people in the Gulf Coast, Hurricane Katrina has shredded the very fabric of everyday life. As my colleagues from Louisiana, Mississippi, and Alabama have already described, the needs are immeasurable. For many people, it will be years before their lives return to normal. And untold others have paid with their lives. We hold the citizens of Louisiana, Mississippi, and Alabama in our thoughts and in our prayers.

This storm calls on each of us to respond in the best way that we can. And people around the United States are opening their homes and their hearts to the victims of Hurricane Katrina.

Among the most immediate and pressing needs of many who have been hit by hurricane Katrina is a fundamental one--food. Displaced individuals with no ready source of income must, among all of their daily worries, still struggle with the basic task of feeding their families. This situation is exacerbated by the simple fact that retail food outlets have ceased to operate throughout the Gulf Coast. The Department of Agriculture has estimated that food stamp program caseloads alone are likely to increase by 1.4 million people because of Katrina. Furthermore, the Department says that this is a ``very conservative'' estimate and that the real need may be considerably greater than this.

In Louisiana alone, over 400,000 people are already receiving food stamps through the Emergency Food Stamp Program. In Texas, over 100,000 people have received emergency food stamps. These numbers are rising rapidly with every passing day and are certain to continue to do so.

No American should live in the shadow of hunger and food insecurity, least of all those displaced and devastated by natural disasters. Fortunately, the Federal Government has long provided food assistance to help individuals and families in need. The Department of Agriculture is already working hard to get commodities and emergency food stamps to the victims of Hurricane Katrina. And while there has been much criticism of the disaster efforts generally, I have yet to hear of complaints about the response from the Department of Agriculture. Even so, we can and must do more.

That is why today, with my colleague Senator Leahy, I am introducing the Hurricane Katrina Food Assistance Relief Act of 2005. I am hopeful that my colleagues will join us in working to pass this legislation expeditiously to enhance our Federal response to the needs of hungry Americans devastated by Hurricane Katrina.

This proposal would provide USDA with additional funding and authorities to provide a strong and continuous response to the food needs of thousands of families adversely affected by Hurricane Katrina. The legislation builds upon the capacities of several Federal programs to assist our citizens in need. The legislation targets three groups of households: Those living in areas hit by Katrina, those who have lost jobs in the disaster areas, and those who have relocated from the disaster area to other parts of the country.

This bill provides additional funds to allow for unanticipated caseload increases in the Special Supplemental Nutrition Program for Women, Infants, and Children.

It also gives the Department of Agriculture additional funds to purchase bulk commodities and to provide emergency food through food banks and local food pantries.

The legislation especially strengthens the ability of the Food Stamp Program to respond to this tremendous disaster by increasing benefit amounts, expanding eligibility, and streamlining the application process and the delivery of benefits. It also provides additional Federal funds to State food stamp agencies that are likely to be overwhelmed by the workload associated with helping all those who seek aid.

I ask that my colleagues on both sides of the aisle join with Senator Leahy and me in continuing to shape an appropriate response to the food needs of the victims of Hurricane Katrina. The legislation that we are introducing today is a good faith effort and is, I believe, a generous and appropriate starting point. But I have no doubt that it may be improved. I welcome the advice and suggestions of my colleagues on both sides of the aisle and look forward to doing all that we can with all necessary haste to bring relief to the victims of Hurricane Katrina.

I ask unanimous consent that the text of the bill be printed in the Record.

Mr. President, I rise today to introduce legislation that would provide continuous care to those veterans that have been affected by Hurricane Katrina, one of the worst natural disasters that our country has ever experienced. The Department of Veterans Affairs, VA has played an integral role in the disaster relief efforts of Hurricane Katrina, beginning with the successful evacuation of patients, staff and family members, and now in the recovery stage of the aftermath.

Earlier today, I attended a briefing given by VA Secretary Nicholson and other VA officials on VA's response to the hurricane. VA truly stepped up in the midst of this crisis, and successfully evacuated all of their patients and staff without any loss of life. I commend VA for their coordination and execution of their relief effort. The Department should serve as a model for other government agencies in dealing with disasters.

There is one area, however, where I believe even more can be done to help veterans in Louisiana and Mississippi who have been affected by this tragedy. The legislation I'm introducing will extend a humanitarian hand to those middle-income veterans in the region who do not have access to VA health care because of a decision made by this administration in 2003. The bill extends hospital care and medical services to the Priority 8 veterans affected by Hurricane Katrina, who have previously been denied access to the system.

Veterans residing in areas of New Orleans, LA; Biloxi, MS, or Gulfport, MS, during the hurricane--who have most likely lost everything in this disaster--will be able to find solace in knowing that VA will continue to be there for them even after the media attention fades. It would simply be wrong to exclude these men and women who have served our country from VA services, especially now in their time of need. This bill also serves to relieve some of the financial burden placed on the veterans by waiving copayments for care and medications.

VA's mission is to take care of veterans and also to provide support to other Federal agencies during times of disaster. VA has upheld that mission by establishing a legacy of first rate health care for veterans and now through the response efforts to Hurricane Katrina. We can do more for these veterans by allowing VA to serve as a beacon of hope in their time of recovery.

I would like to thank the countless VA volunteers that have answered the call of duty to our Nation, just as our veterans once did. These volunteers have left their duty stations to support efforts at the surrounding VA hospitals that have taken on the evacuated patients, as well as manning the mobile clinics currently touring the affected areas to provide care. These men and women are true heroes.

I ask unanimous consent that the text of the bill be printed in the Record.