I yield myself such time as I may consume. Mr. Speaker, although I believe this legislation is well-intended, I have serious concerns about H.R. 5503 and about the process under which it is being considered today. It is important that BP…
I yield myself such time as I may consume.
Mr. Speaker, although I believe this legislation is well-intended, I have serious concerns about H.R. 5503 and about the process under which it is being considered today.
It is important that BP and other responsible parties pay all costs associated with the oil spill and that they be
held fully accountable for this catastrophe and for the 11 lives tragically lost in the explosion on the Deepwater Horizon. However, H.R. 5503 will have unintended consequences that will reach well beyond the gulf coast disaster. In fact, very little in this bill is directed solely at oil spill-related liability.
It is incredible that the sweeping changes this bill makes have made their way to the House floor without the benefit of even one legislative hearing. It is also incredible that we are considering this bill under suspension of the rules, denying those with concerns the opportunity to offer even one amendment.
Had this bill been considered under regular order, I would have offered an amendment to limit it to claims arising out of oil spills. This amendment would ensure that those responsible for oil spills would be held fully accountable while, at the same time, restricting the bill's unintended consequences. Because H.R. 5503 is not limited to oil spills, its unintended consequences will be severe.
For example, the changes it makes virtually rewrite U.S. maritime liability law; and in some instances, the changes make it out of step with the laws of nearly every other maritime nation. Maritime actions usually involve numerous parties with competing claims--loss of life or personal injury--and multiple jurisdictions in which claims may be filed. The Shipowner's Limitation of Liability Act addresses these problems by allowing for the consolidation of all claims arising out of a maritime accident into one Federal forum.
It also creates a fund to pay personal injury and death claims over and above the act's general liability limit.
This bill repeals the act without adopting any replacement legislation to fill the void. This introduces uncertainty and in many cases may lead to inadequate compensation to personal injury and wrongful death claimants, since repealing the act repeals the personal injury fund.
Let me repeat that, Mr. Speaker: This bill repeals the personal injury fund which every vessel owner is required to create to pay personal injury claims over and above the act's general liability gap.
Other sections of this bill are also questionable. Section 3 allows for recovery of non-economic damages in wrongful death actions under the Jones Act. While this may seem like a fair result, it actually creates inequities, because the Jones Act is the equivalent of land- based worker's compensation statutes, which do not apply at sea. But worker's compensation laws do not allow for the recovery of noneconomic damages, thus Jones Act seamen will receive greater recoveries than are provided to nearly every other American worker.
This change is being made without the benefit of a legislative hearing to understand its full impact on injured workers, employers, shippers, and consumers. These extensive changes to U.S. maritime liability law, which apply well beyond oil spills, threaten to increase dramatically the cost of shipping goods, an increase that will be borne by all American consumers.
Finally, by giving Oil Pollution Act claimants veto power over bankruptcy asset sales of companies with OPA liability, the bill effectively gives these claimants control of the bankruptcy process. However, giving OPA claimants this veto power seriously curtails the rights of other bankruptcy claimants, included secured creditors, pension funds, and other tort victims, and State and local governments.
Because this legislation applies retroactively, there is no reason to push this bill through on suspension without having conducted a single legislative hearing on its sweeping changes.
Let me be clear, Mr. Speaker. Republicans do not want to give BP a free pass. That is why we offered amendments in committee to narrow the scope of this legislation to cover companies like BP that are responsible for oil spills. These amendments were voted down by the majority. But in the Democrats' haste to act before the Fourth of July recess, they are pushing for a bill that would punish all other maritime industries for the faults of BP. That is not fair, and it is not good policy. It would also be a job-killer for many hardworking Americans who had nothing to do with the oil spill.
Rather than cave to political gamesmanship and vote for a bad bill, Congress should do what is best for the American people. As we amend the Federal law to ensure that BP and other responsible parties are held accountable for the full extent of the harm they have caused, we must avoid harming the national interests.
Because we have had no legislative hearings on this bill, we cannot be sure that it does not harm the economy, maritime industries, and American jobs. The bill should be sent back to committee to be examined and amended properly before being brought again to the floor for a vote.
I reserve the balance of my time.
Mr. Speaker, before I yield time to my colleague from Texas, I yield myself 1 minute.
Mr. Speaker, I want to respond to what my chairman said just a minute ago and set the record straight. We did not have a single legislative hearing on this bill, so we never even went over it one time to fully appreciate the consequences and the unintended consequences of this bill.
For example, this bill changes maritime law for everyone, not just those involved in the oil spill. Clearly we should have explored the consequences of that.
Beyond that, and I want to emphasize this, this bill, and it is too late to
make any changes because no amendments have been made in order, repeals the vessel owner personal liability fund. That alone is enough of a reason to oppose this bill, that it repeals the personal liability fund that vessel owners today have to have.
Mr. Speaker, I yield 3 minutes to my colleague from Texas (Mr. Poe), who is a member of the Judiciary Committee and the deputy ranking member of the Crime Subcommittee.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, the National Bankruptcy Conference, a nonpartisan organization of lawyers, professors, and judges, opposes the bankruptcy provisions in this bill. According to the Conference, ``the proposed amendments are not likely to achieve their purpose and instead are likely to have pernicious, unintended, and counterproductive consequences.''
The nonpartisan National Bankruptcy Conference explains that ``by granting a preference to holders of oil spill claims at the expense of other innocent and equally deserving creditors, the provisions in this bill represent bad bankruptcy policy.'' Moreover, according to the Conference, one of the effects of the bankruptcy provisions in this bill will be to ``entrench the very management that presided over the spill and led the company into bankruptcy.''
Mr. Speaker, you wonder how anyone can even consider voting for this bill. In short, we should not be rushing these bankruptcy provisions through Congress today. The unintended consequences will be severe, as the National Bankruptcy Conference just told us.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, how much time remains on each side?
Mr. Speaker, I yield myself such time as I may consume.
As I mentioned in my opening statement, repealing the Limitation of Liability Act hurts victims of maritime accidents. The Limitation of Liability Act provides for the orderly resolution of claims arising out of a maritime accident in one Federal court. It also creates a compensation fund for personal injury claims. Repealing the act eliminates these two important provisions. In many cases, this will result in victims of maritime accidents receiving less compensation than they would under current law.
First, victims will receive less compensation because cases will no longer be consolidated in one Federal court. Consolidation allows victims to share litigation and expert costs and allows for proportional allocation of damage awards. Second, victims will potentially receive less compensation because repealing the act will repeal the personal injury fund. The personal injury fund requires vessel owners to provide compensation over and above the liability cap.
Again, a vote for this bill is a vote to repeal the personal injury fund. Let's not rush this bill through the House today and hurt the very people we're supposed to be trying to help but send it back to committee to be examined and amended properly.
Madam Speaker, I reserve the balance of my time.
Madam Speaker, I have no further requests for time, and I reserve the balance of my time.
Madam Speaker, I continue to reserve the balance of my time.
Madam Speaker, I yield myself the balance of my time.
Madam Speaker, in summary, this bill should be opposed for four reasons:
First, the bill repeals the Limitation of Liability Act, which will actually hurt the victims of maritime accidents. Repealing the act eliminates important protections for maritime victims, including the fund for compensating personal injury victims. This bill, incredibly, repeals the personal injury fund;
Second, the bill amends the Bankruptcy Code in a manner that the National Bankruptcy Conference, a very bipartisan organization, believes will create ``pernicious, unintended, and counterproductive consequences'' that benefit oil spill claimants ``at the expense of other innocent and equally deserving creditors'';
Third, the bill was rushed through committee without a single legislative hearing and is being rushed through the House on suspension, without giving Members the opportunity to offer amendments; and
Fourth, because this bill is being rushed through the House, Congress has not been fully informed of the unintended consequences this bill creates for the U.S. maritime industry, which is a large part of the economy of the gulf coast region; the American economy, which relies on U.S. shipping to take goods to and from market; and the victims of maritime accidents, who, in many cases, will actually be hurt by this legislation.
Madam Speaker, I urge all my colleagues to vote ``no'' on this bill, send it back to committee. Let's improve it, let's amend it, and then bring it back to the floor. I hope my colleagues will vote ``no.''
I yield back the balance of my time.