[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2546 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2546

   To establish legal standards and procedures for the fair, prompt, 
inexpensive, and efficient resolution of personal injury claims arising 
           out of asbestos exposure, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 2, 1998

  Mr. Hatch (for himself, Mr. Dodd, Mr. Ashcroft, Mr. Lieberman, Mr. 
Sessions, and Mr. Torricelli) introduced the following bill; which was 
       read twice and referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
   To establish legal standards and procedures for the fair, prompt, 
inexpensive, and efficient resolution of personal injury claims arising 
           out of asbestos exposure, 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) Short Title.--This Act may be cited as the ``Fairness in 
Asbestos Compensation Act of 1998''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
                TITLE I--ASBESTOS RESOLUTION CORPORATION

Sec. 101. Establishment.
Sec. 102. Powers of the Corporation.
Sec. 103. Board of Directors.
Sec. 104. Officers.
Sec. 105. Medical Advisory Board.
Sec. 106. Avoidance of conflict of interest.
Sec. 107. Annual reports.
              TITLE II--MEDICAL ELIGIBILITY DETERMINATIONS

Sec. 201. Medical criteria--nonmalignant conditions.
Sec. 202. Medical criteria--mesothelioma.
Sec. 203. Medical criteria--lung cancer.
Sec. 204. Medical criteria--other cancer.
Sec. 205. Procedure for certificate of eligibility.
Sec. 206. Exceptional medical claims.
Sec. 207. Confidentiality.
Sec. 208. Judicial review.
               TITLE III--ALTERNATIVE DISPUTE RESOLUTION

Sec. 301. Rules of procedure.
Sec. 302. Motions officers.
Sec. 303. Notice to respondents.
Sec. 304. Additional respondents.
Sec. 305. Grace period.
Sec. 306. Mediation.
Sec. 307. Arbitration.
Sec. 308. Subpoena powers of motions officers and arbitrators.
                        TITLE IV--CIVIL ACTIONS

Sec. 401. Prerequisites for civil action.
Sec. 402. Individual trials.
Sec. 403. Certificate of medical eligibility presumed correct.
Sec. 404. Penalty for inadequate offer in mediation.
      TITLE V--RULES APPLICABLE TO ARBITRATIONS AND CIVIL ACTIONS

Sec. 501. Elements of proof; relief.
Sec. 502. Timeliness defenses abolished.
Sec. 503. Attorneys' fees.
Sec. 504. Effect on subsequent actions.
                           TITLE VI--FUNDING

Sec. 601. Costs of medical review and overhead and administration.
Sec. 602. Cost of mediation and arbitration.
Sec. 603. Informal dispute resolution.
Sec. 604. Judicial review; enforcement.
Sec. 605. Penalties.
Sec. 606. Asbestos Resolution Corporation Trust Fund.
            TITLE VII--APPLICABILITY; PENDING CIVIL ACTIONS

Sec. 701. Applicability.
Sec. 702. Pending civil actions.
                  TITLE VIII--MISCELLANEOUS PROVISIONS

Sec. 801. Applicability of other Federal laws.
Sec. 802. Obligations of the Corporation not obligations of the United 
                            States.
Sec. 803. Application to existing asbestos trusts.
Sec. 804. Severability.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Asbestos personal injury litigation is unfair and 
        inefficient, and imposes a crushing burden on litigants and 
        taxpayers alike.
            (2) Asbestos litigation has already led to the bankruptcy 
        of more than 15 companies, representing the great majority of 
        the former asbestos industry.
            (3) The extraordinary volume of asbestos litigation is 
        straining Federal and State courts at enormous taxpayer 
        expense, with more than 150,000 such lawsuits currently pending 
        in the tort system and tens of thousands of new cases filed 
        every year.
            (4) Asbestos litigation has resulted in arbitrary verdicts, 
        with individuals receiving widely varying recoveries despite 
        similar medical conditions.
            (5) Asbestos litigation is a mature tort. The legal, 
        medical, and scientific issues have been repeatedly tried and 
        retried in the courts for many years.
            (6) Currently, statutes of limitations can force claimants 
        to bring premature lawsuits in order to avoid losing their 
        claim for compensation. Moreover, in order to obtain 
        compensation for nonmalignant disease, claimants often must 
        give up their right to obtain compensation later on, if they 
        develop an asbestos-related cancer.
            (7) Litigation has not been able to provide compensation to 
        claimants swiftly. On the contrary, according to the Ad Hoc 
        Committee on Asbestos Litigation of the United States Judicial 
        Conference, the volume and complexity of asbestos cases have 
        resulted in the violation of a basic tenet of American justice; 
        which is the speedy and inexpensive resolution of cases.
            (8) Litigation has also proved to be an extraordinarily 
        costly means of resolving claims of asbestos-related disease. 
        Less than 50 percent of the total cost of asbestos litigation 
        actually goes to compensate claimants, while the remainder is 
        eaten up in attorneys' fees and other litigation costs.
            (9) In many courts, the vast majority of pending asbestos 
        claims are filed by individuals who suffer no present asbestos-
        related impairment. These claims divert the resources of 
        defendants from compensating individuals who are suffering from 
        serious asbestos-related disease.
            (10) Punitive damages also divert the resources of 
        defendants from compensating impaired claimants. Moreover, 
        punitive damages give a few claimants huge windfalls in 
        addition to compensatory damages.
            (11) In an effort to cope with the overwhelming tide of 
        asbestos cases, a few courts have resorted to mass consolidated 
        trials and other aggregative methods of dealing with asbestos 
        claims. Unfortunately, mass consolidations only serve to 
        magnify the irrationality of a litigation system that awards 
        massive amounts to the unimpaired, while threatening the 
        ability of seriously ill people to obtain compensation in the 
        future.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Alternative dispute resolution process.--The term 
        ``alternative dispute resolution process'' means the mediation 
        and voluntary arbitration process established under title III 
        of this Act.
            (2) Asbestos.--The term ``asbestos'' means any number of 
        naturally occurring silicates with the common properties of 
        great resistance to destruction by physical or chemical means 
        and a fibrous configuration, including asbestiform varieties of 
        chrysotile, crocidolite, amosite, anthophyllite, tremolite, or 
        actinolite.
            (3) Asbestos claim.--The term ``asbestos claim'' means any 
        claim for damages or other relief, arising out of, based on, or 
        related to the health effects of exposure to asbestos, 
        including any claim for personal injury, death, mental or 
        emotional injury, risk of disease or other injury, or the costs 
        of medical monitoring or surveillance, and including any claim 
        made by or on behalf of any exposed person or any 
        representative, spouse, parent, child, or other relative of any 
        exposed person.
            (4) Asbestos trust.--The term ``asbestos trust'' means a 
        court-supervised trust established to resolve asbestos claims 
        arising directly or indirectly from exposure to asbestos or 
        asbestos-containing products, including a trust created 
        pursuant to the bankruptcy laws of the United States or rule 23 
        of the Federal Rules of Civil Procedure.
            (5) Basilar crackles.--The term ``basilar crackles'', 
        sometimes called ``rales'', means those sounds described in 
        American Thoracic Society, ``The Diagnosis of Nonmalignant 
        Diseases Related to Asbestos'', 134 American Review of 
        Respiratory Disease, 363, 366 (1986).
            (6) Board.--The term ``Board'' means the Board of Directors 
        of the Asbestos Resolution Corporation.
            (7) Board-certified internist.--The term ``Board-certified 
        internist'' means a physician who is currently certified by the 
        American Board of Internal Medicine in internal medicine.
            (8) Board-certified oncologist.--The term ``Board-certified 
        oncologist'' means a physician who is currently certified by 
        the American Board of Internal Medicine in the subspecialty of 
        medical oncology.
            (9) Board-certified pathologist.--The term ``Board-
        certified pathologist'' means a physician who currently holds 
        primary certification in anatomic pathology, or combined 
        anatomic and clinical pathology, from the American Board of 
        Pathology.
            (10) Board-certified pulmonary specialist.--The term 
        ``Board-certified pulmonary specialist'' means a physician who 
        is currently certified by the American Board of Internal 
        Medicine in the subspecialty of pulmonary disease.
            (11) Board-certified radiologist.--The term ``Board-
        certified radiologist'' means a physician who is currently 
        certified by the American Board of Radiology.
            (12) Bylaws.--The term ``bylaws'' means the code or codes 
        of rules adopted for the regulation or management of the 
        affairs of the Corporation. Bylaws shall be consistent with the 
        requirements of this Act and, to the extent consistent with 
        this Act, with the requirements of the District of Columbia 
        Nonprofit Corporation Act (D.C. Code section 29-501 et seq.).
            (13) Cancer.--The term ``cancer'' means any of the various 
        malignant neoplasms marked by the proliferation of anaplastic 
        cells that tend to invade surrounding tissue and metastasize to 
        new body sites and the pathological condition characterized by 
        such growths.
            (14) Certificate of medical eligibility.--The term 
        ``certificate of medical eligibility'' means a certificate 
        issued by the Corporation to a claimant pursuant to this Act 
        certifying that an exposed person meets the requirements of 1 
        or more eligible medical categories (or qualifies as an 
        exceptional medical claim with respect to an eligible medical 
        category).
            (15) Certified b-reader.--The term ``certified B-reader'' 
        means an individual qualified as a ``final'' or ``B-reader'' 
        under section 37.51(b) of title 42, Code of Federal Regulations 
        (and any subsequent revisions thereof) whose certification is 
        current.
            (16) Chest x-rays.--The term ``chest x-rays'' means chest 
        radiographs taken in 4 views (Posterior-Anterior, Lateral, and 
        Left and Right Obliques) and graded quality 1 for reading 
        according to the criteria established by the ILO; except that, 
        in situations where the claimant is unable to provide quality 1 
        chest x-rays because of death or because of an inability to 
        have new chest x-rays taken, chest x-rays graded quality 2 will 
        be acceptable.
            (17) Civil action.--The term ``civil action'' means any 
        action, lawsuit, or proceeding in any Federal, State, or tribal 
        court, but does not include--
                    (A) a criminal action;
                    (B) an action relating to Federal or State worker's 
                compensation laws; or
                    (C) a proceeding for judicial review of the actions 
                of the Corporation.
            (18) Claimant.--The term ``claimant'' means any exposed 
        person or the legal representative of that exposed person, and 
        any parent, child, or other relative of an exposed person, or 
        the legal representative of that exposed person, who applies to 
        the Corporation for a certificate of medical eligibility or who 
        invokes the alternative dispute resolution services offered by 
        the Corporation.
            (19) Clinical evidence of asbestosis.--The term ``clinical 
        evidence of asbestosis'' means a diagnosis of pulmonary 
        asbestosis by a Board-certified internist or Board-certified 
        pulmonary specialist based on the following minimum objective 
        criteria:
                    (A) Chest x-rays which, in the opinion of a 
                certified B-reader, show small irregular opacities of 
                ILO grade 1/0 and pulmonary function testing and 
                physical examination that show either--
                            (i) FVC <80 percent of predicted value with 
                        FEV<INF>1</INF>/FVC <gr-thn-eq>75 percent 
                        (actual value); or
                            (ii) TLC <80 percent of predicted value, 
                        with either DLCO <ls-thn-eq>76 percent of 
                        predicted value or bilateral basilar crackles, 
                        and also the absence of any probable 
                        explanation for this DLCO result or crackles 
                        finding other than the presence of lung 
                        disease.
                    (B) Chest x-rays which, in the opinion of a 
                certified B-reader, show small irregular opacities of 
                ILO grade 1/1 or greater; and pulmonary function 
                testing that shows either--
                            (i) FVC<80 percent of predicted value with 
                        FEV<INF>1</INF>/FVC<gr-thn-eq>72 percent 
                        (actual value) or, if the individual tested is 
                        at least 68 years old at the time of the 
                        testing, with FEV<INF>1</INF>/FVC<gr-thn-eq>65 
                        percent (actual value); or
                            (ii) TLC<80 percent of predicted value.
            (20) Compensatory damages.--The term ``compensatory 
        damages'' means damages awarded for economic and noneconomic 
        loss.
            (21) Corporation.--The term ``Corporation'' means the 
        Asbestos Resolution Corporation established in section 101.
            (22) Defendant.--The term ``defendant'' means any party in 
        a civil action that is alleged to be legally responsible for 
        the claimant's injury.
            (23) DLCO.--The term ``DLCO'' means diffusing capacity of 
        the lung (carbon monoxide), which is a measure of the volume of 
        carbon monoxide transferred from the alveoli to blood in the 
        pulmonary capillaries for each unit of driving pressure of the 
        carbon monoxide.
            (24) Economic loss.--The term ``economic loss'' means any 
        pecuniary loss resulting from harm (including the loss of 
        earnings or other benefits related to employment, medical 
        expense loss, replacement service loss, loss due to death, 
        burial costs, and loss of business or employment opportunities) 
        to the extent that recovery for such loss is allowed under 
        applicable law.
            (25) Eligible medical category.--The term ``eligible 
        medical category'' means mesothelioma, lung cancer, other 
        cancer, and nonmalignant conditions.
            (26) Evidence of bilateral pleural thickening with 
        impairment.--The term ``evidence of bilateral pleural 
        thickening with impairment'' means a diagnosis of bilateral 
        pleural thickening with impairment by a Board-certified 
        internist or Board-certified pulmonary specialist based on the 
        following minimum objective criteria:
                    (A) Chest x-rays which, in the opinion of a 
                certified B-reader, show bilateral pleural thickening 
                of ILO Grade B2, and which includes blunting of at 
                least 1 costophrenic angle and is not explained by any 
                other condition in the subject's history; and pulmonary 
                function testing that shows--
                            (i) if TLC is available, TLC<75 percent of 
                        predicted value; or
                            (ii) if TLC is not available, VC or FVC<75 
                        percent of predicted value with 
                        FEV<INF>1</INF>/FVC<gr-thn-eq>75 percent 
                        (actual value); and in either case
                            (iii) a statement by the Board-certified 
                        internist or Board-certified pulmonary 
                        specialist that the asbestos-related changes 
                        are a substantial contributing factor in 
                        causing the pulmonary function changes.
                    (B) Chest x-rays which, in the opinion of a 
                certified B-reader, show bilateral pleural thickening 
                of ILO grade C2 or greater, and which includes the 
                blunting of at least 1 costophrenic angle and is not 
                explained by any other condition in the subject's 
                history; and pulmonary function testing that shows--
                            (i) FVC<80 percent of predicted value with 
                        FEV<INF>1</INF>/FVC<gr-thn-eq>75 percent 
                        (actual value), or, if the individual tested is 
                        at least 68 years old at the time of the 
                        testing, with FEV<INF>1</INF>/FVC <gr-thn-eq>65 
                        percent (actual value); or
                            (ii) TLC <80 percent of predicted value; 
                        and in either case
                            (iii) a statement by the Board-certified 
                        internist or Board-certified pulmonary 
                        specialist that the asbestos-related changes 
                        are a substantial contributing factor in 
                        causing the pulmonary function changes.
            (27) Exceptional medical claim.--The term ``exceptional 
        medical claim'' means a claim identified as such pursuant to 
        the procedures in section 206.
            (28) Exposed person.--The term ``exposed person'' means any 
        person who has been exposed in any State (or while working 
        aboard a United States vessel outside the United States) to 
        asbestos or to asbestos-containing products.
            (29) FEV<INF>1</INF>.--The term ``FEV<INF>1</INF>'' means 
        forced expiratory volume (1 second), which is the maximal 
        volume of air expelled in 1 second during performance of the 
        spirometric test for forced vital capacity (FVC). 
        FEV<INF>1</INF> shall be measured using standard spirometric 
        methods.
            (30) Final certificate of eligibility.--The term ``final 
        certificate of eligibility'' means a certificate of eligibility 
        that is not subject to further review or modification by the 
        Corporation, whether on reconsideration under section 205 by 
        action of an exceptional medical claims panel under section 
        206.
            (31) FVC.--The term ``FVC'' means forced vital capacity, 
        which is the maximal volume of air expired with a maximally 
        forced effort from a position of maximal inspiration. FVC shall 
        be measured using standard spirometric methods.
            (32) Good faith offer or good faith demand.--The terms 
        ``good faith offer'' or ``good faith demand'' means a 
        settlement offer or demand which reflects an evaluation of 
        relevant factors of traditional tort principles of damages.
            (33) Grace period.--The term ``grace period'' means the 
        period allowed for voluntary settlements in section 305.
            (34) ILO.--The term ``ILO'' means the International Labour 
        Office.
            (35) ILO grade.--The term ``ILO grade'' means the 
        radiological ratings for the presence of lung changes by chest 
        x-rays as established from time to time by the ILO.
            (36) Latency period.--The term ``latency period'' means the 
        period from the date of the exposed person's first significant 
        exposure to asbestos or an asbestos-containing product to the 
        date of manifestation of the condition claimed.
            (37) Manifestation.--The term ``manifestation'' means 
        either the date of the actual diagnosis of the condition 
        claimed, or the date upon which the clinical records and 
        available tests indicate that the condition could reasonably 
        have been diagnosed by a competent physician.
            (38) Medical advisory board.--The term ``medical advisory 
        board'' means the board established under section 105 to 
        provide medical advice to the board of directors of the 
        Corporation.
            (39) Mesothelioma.--The term ``mesothelioma'' means a 
        malignant tumor of the mesothelial tissue.
            (40) Motions officer.--The term ``motions officer'' means 
        an official of the Corporation responsible for resolving 
        procedural and discovery disputes during the alternative 
        dispute resolution process in the absence of an arbitrator. 
        Motions officers shall be members in good standing of the bar 
        of a State.
            (41) Noneconomic loss.--The term ``noneconomic loss'' means 
        subjective, nonmonetary loss resulting from harm, including 
        pain, suffering, inconvenience, mental suffering, emotional 
        distress, loss of society and companionship, loss of 
        consortium, injury to reputation, and humiliation.
            (42) OSHA.--The term ``OSHA'' means the Occupational Safety 
        and Health Administration of the Department of Labor.
            (43) Occupational history.--The term ``occupational 
        history'' means a listing of all employment positions, 
        providing for the dates and place of employment, the employer, 
        and a description of job responsibilities and activities.
            (44) Operational date.--The term ``operational date'' means 
        the date on which the Board certifies that the Corporation is 
        operational.
            (45) Pathological evidence of asbestosis.--The term 
        ``pathological evidence of asbestosis'' means diagnosis of 
        pulmonary asbestosis by a Board-certified pathologist based on 
        a finding that more than 1 representative section of lung 
        tissue otherwise uninvolved with any other process (e.g., 
cancer or emphysema) demonstrates a pattern of peribronchiolar or 
parenchymal scarring in the presence of characteristic asbestos bodies, 
and also that there is no other more likely explanation for the 
presence of the fibrosis.
            (46) Person.--The term ``person'' means an individual, 
        trust, firm, corporation, association, partnership, joint 
        venture, the United States, and any State or political 
        subdivisions thereof. The term does not include an asbestos 
        trust in existence as of the date of enactment unless the trust 
        elects to be covered by this Act under section 803.
            (47) Physician.--The term ``physician'' means a medical 
        doctor currently licensed to practice medicine in any State who 
        has not, within the 5-year period prior to the date of 
        enactment of the Act, spent more than \1/2\ of that 
        individual's professional time, or derived more than \1/2\ of 
        that individual's professional income, either annually or in 
        total, either reviewing or testifying in any forum on medical-
        legal issues related to asbestos.
            (48) Predicted value.--The term ``predicted value'' for 
        spirometry and lung volumes shall be the relevant value 
        published by Morris, Clinical Pulmonary Function Testing, 2d 
        Edition, Intermountain Thoracic Society (1984). ``Predicted 
        Value'' for diffusing capacity shall be the relevant value 
        published by Miller, et al., ``Single Breath Diffusing Capacity 
        in a Representative Sample of the Population of Michigan, a 
        Large Industrial State'', 127 American Review of Respiratory 
        Disease, 270-77 (1983). Predicted value in all pulmonary 
        function tests shall be corrected for race, ethnic origin, and 
        other relevant factors.
            (49) Pulmonary function testing.--The term ``pulmonary 
        function testing'' means spirometry, lung volume, and diffusing 
        capacity (``DLCO'') testing. All spirometry shall use standard 
        spirometric methods. Pulmonary function testing other than 
        spirometry shall use methods, quality criteria, and standards 
        approved by the Board, upon the recommendation of the Medical 
        Advisory Board. Such methods, quality criteria, and standards 
        shall be generally recognized by authoritative professional 
        bodies as appropriate, giving due consideration to the 
        reliability where obstructive lung disease may be present. All 
        backup data (including flow volume loops, spirographs, and 
        other tracings), necessary to ensure compliance with the 
        methods, quality criteria, and standards approved by the Board 
        shall be submitted to the Corporation along with the results of 
        such tests.
            (50) Punitive damages.--The term ``punitive damages'' means 
        damages awarded against any person to punish or deter such 
        person, or others, from engaging in similar behavior in the 
        future.
            (51) Respondent.--The term ``respondent'' means any person 
        who is or may be responsible for a claimant's asbestos-related 
        condition and who is so notified by the Corporation under 
        section 303 or 304. The term does not include an asbestos trust 
        in existence as of the date of enactment of this Act unless the 
        trust elects to be covered by this Act under section 803.
            (52) Standard spirometric methods.--The term ``standard 
        spirometric methods'' means spirometric methods and equipment 
        that substantially conform to American Thoracic Society 
        standards for technical quality and instrumentation, as set 
        forth in section 718.103 of title 20, Code of Federal 
        Regulations, and appendix B thereto or in guidelines 
        established by the American Thoracic Society, as set forth in 
        ``Standardization of Spirometry--1994 Update'', 152 American 
        Review of Respiratory Disease 1107-36 (1995) and any revisions 
        thereof. Each subject must be tested with and without inhaled 
        bronchodilators, with best values taken. All backup data 
        pertaining to spirometric testing of an exposed person 
        (including all flow volume loops, spirographs, and any other 
        tracings) shall be submitted to the Corporation to ensure that 
        these quality criteria and standards have been satisfied.
            (53) State.--The term ``State'' means any State of the 
        United States, the District of Columbia, Commonwealth of Puerto 
        Rico, the Northern Mariana Islands, the Virgin Islands, Guam, 
        American Samoa, and any other territory or possession of the 
        United States or any political subdivision of any of the 
        foregoing.
            (54) TLC.--The term ``TLC'' means total lung capacity, 
        which is the volume of air in the lung after maximal 
        inspiration.
            (55) Workers' compensation law.--The term ``workers 
        compensation law'' means a law respecting a program 
        administered by a State or the United States to provide 
        benefits, funded by a responsible employer or its insurance 
        carrier, for occupational diseases or injuries or for 
        disability or death caused by occupational diseases or 
        injuries. The term includes the Longshore and Harbor Workers' 
        Compensation Act (33 U.S.C. 901 through 944, and 948 through 
        950), but does not include the Federal Employers' Liability Act 
        (45 U.S.C. 51 et seq.).

                TITLE I--ASBESTOS RESOLUTION CORPORATION

SEC. 101. ESTABLISHMENT.

    There is established a corporation, to be known as the ``Asbestos 
Resolution Corporation''.

SEC. 102. POWERS OF THE CORPORATION.

    The Corporation shall have the power to--
            (1) hire or appoint employees and to retain the services of 
        other entities to provide such employees;
            (2) contract for services, including the services of 
        physicians and other medical professionals, hearing examiners, 
        mediators, arbitrators, financial experts or consultants, 
        accountants, and attorneys;
            (3) receive voluntary contributions of funds, goods, and 
        services in order to carry out its purposes;
            (4) appoint 1 or more exceptional medical claims panels, as 
        described in section 206(a);
            (5) adopt rules, policies, and procedures governing 
        recovery of costs from and allocation of costs to defendants 
        and respondents;
            (6) adopt rules, policies, and procedures for the fair and 
        efficient conduct of medical review and alternative dispute 
        resolution;
            (7) conduct audits of information submitted to it, 
        including inspection of laboratories performing medical tests 
        and verification of quality assurance and quality control 
        procedures; and
            (8) sue and be sued in its corporate name.

SEC. 103. BOARD OF DIRECTORS.

    (a) Membership.--
            (1) In general.--The Corporation shall be managed by a 
        Board of Directors consisting of 7 members appointed by the 
        President, by and with the advice and consent of the Senate.
            (2) Chairperson.--The President shall designate the 
        chairperson of the Board.
            (3) Limitation.--Not more than 4 directors may be members 
        of the same political party.
            (4) Membership requirement.--The directors shall be 
        distinguished private citizens of the United States.
            (5) Nominations.--The President shall submit 7 nominations 
        under this section to the Senate not later than 4 months after 
        the date of the enactment of this Act.
    (b) Terms.--
            (1) In general.--Each director shall be appointed for a 
        term of 6 years beginning on the date of expiration of the term 
        of the predecessor of that director, except that, of the 
        directors first appointed--
                    (A) 3 shall be appointed for a term of 3 years,
                    (B) 3 shall be appointed for a term of 6 years, and
                    (C) the chairperson shall be appointed for a term 
                of 6 years.
            (2) Period of terms.--The terms of office of the directors 
        first appointed shall begin on the date of enactment. A 
        director may continue to serve until his successor has been 
        appointed and confirmed.
    (c) Vacancy.--A vacancy on the Board shall be filled in the same 
manner as the original appointment. A director appointed to fill a 
vacancy occurring before the expiration of the term for which the 
predecessor of that director was appointed shall be appointed for the 
remainder of that term. A vacancy shall not affect the power of the 
Board.
    (d) Removal.--Directors may be removed for cause by the President.
    (e) Compensation; Expenses.--
            (1) The compensation of directors other than the 
        chairperson shall not exceed $50,000 per year, and the 
        compensation of the chairperson shall not exceed $75,000 per 
        year.
            (2) Directors may be reimbursed of reasonable travel and 
        other expenses incurred in connection with their services to 
        the Corporation pursuant to policies adopted by the Board.
    (f) Personal Liability of Directors.--A director shall not be 
personally liable for any act or omission within the scope of the 
director's service as a member of the Board. The liability of a 
director shall not be limited as provided in this subsection if the 
director engaged in willful misconduct or a knowing violation of the 
criminal law.
    (g) Audit Committee.--The Board shall establish an Audit Committee, 
which shall conduct an annual audit of the finances of the Corporation 
and provide an annual report to the Board regarding the financial 
condition of the Corporation.
    (h) Exclusive Authority.--The Board shall have the exclusive 
authority to--
            (1) adopt rules, consistent with this Act, regarding the 
        assessment and recovery of costs, the qualifications of 
        physicians, the organization and operation of the Medical 
        Advisory Board, and the conduct of the alternative dispute 
        resolution process;
            (2) adopt guidelines, upon the recommendation of the 
        Medical Advisory Board, for implementing the provisions of this 
        Act regarding exceptional medical cases;
            (3) recommend the inclusion of new diseases in the eligible 
        medical category known as ``other cancer'' if the Board finds, 
        upon the recommendation of the Medical Advisory Board and at a 
        meeting expressly called for that purpose, that there is a 
        medical consensus that the disease is caused by exposure to 
        asbestos; and
            (4) adopt and amend bylaws.

SEC. 104. OFFICERS.

    The Corporation shall have a chief executive officer and such other 
officers as may be named and appointed by the Board at rates of 
compensation and terms of service fixed by the Board. Officers of the 
Corporation may not simultaneously serve on the Board.

SEC. 105. MEDICAL ADVISORY BOARD.

    (a) In General.--The Board shall appoint a Medical Advisory Board 
to provide advice on medical matters, including--
            (1) retention, supervision, and removal of physicians; 
        establishment of guidelines regarding exceptional medical 
        claims;
            (2) the appropriateness of adding new diseases to the 
        ``other cancer'' eligible medical category designated as 
        ``other cancer''; and
            (3) such other medical matters as may be referred to the 
        Medical Advisory Board by the Board.
    (b) Composition; Rules and Policies.--
            (1) Number of members.--The Medical Advisory Board shall 
        have no fewer than 5 or more than 9 members.
            (2) Qualifications.--Members of the Medical Advisory Board 
        shall be physicians with a demonstrated expertise in asbestos-
        related conditions. The Medical Advisory Board shall include at 
        least 1 of each of the following:
                    (A) A Board-certified pulmonary specialist.
                    (B) A Board-certified radiologist.
                    (C) A Board-certified oncologist.
                    (D) A Board-certified pathologist.
            (3) Rules and policies.--The Board shall adopt such rules 
        and policies regarding the composition and operation of the 
        Medical Advisory Board as may be necessary for its efficient 
        operation, including rules governing--
                    (A) the appointment and removal of members;
                    (B) terms of office;
                    (C) the filling of vacancies;
                    (D) notice and conduct of meetings (including 
                quorum requirements); and
                    (E) compensation.
    (c) Applicability of Federal Advisory Committee Act.--The Medical 
Advisory Board shall be subject to the Federal Advisory Committee Act 
(5 U.S.C. App.).

SEC. 106. AVOIDANCE OF CONFLICT OF INTEREST.

    (a) In General.--No director, officer, member of the Medical 
Advisory Board, employee, contract employee, contractor, or consultant 
to the Corporation may represent any person in any manner in any 
proceeding before the Corporation.
    (b) Policies and Procedures.--In addition, the Board shall adopt 
policies and procedures to guard against both actual and apparent 
conflicts of interest.

SEC. 107. ANNUAL REPORTS.

    The Corporation shall submit an annual report to the President and 
the Committee on the Judiciary of the Senate and the Committee on the 
Judiciary of the House of Representatives with respect to the 
operations, activities, and financial condition of the Corporation on 
or before December 31 of each year.

              TITLE II--MEDICAL ELIGIBILITY DETERMINATIONS

SEC. 201. MEDICAL CRITERIA--NONMALIGNANT CONDITIONS.

    In order to meet the requirements for the nonmalignant conditions 
eligible medical category, a claimant shall be required to submit 
medical information or testimonial information sufficient to 
demonstrate--
            (1) a latency period of at least 12 years; and
            (2)(A) clinical evidence of asbestosis;
            (B) pathological evidence of asbestosis; or
            (C) evidence of bilateral pleural thickening with 
        impairment.

SEC. 202. MEDICAL CRITERIA--MESOTHELIOMA.

    In order to meet the requirements for the mesothelioma eligible 
medical category, a claimant shall be required to submit--
            (1) a diagnosis of malignant mesothelioma with a primary 
        site in the pleura or peritoneum, that--
                    (A) is derived from appropriate tissue, and 
                verified using standardized and accepted criteria of 
                microscopic morphology or a variety of appropriate 
                staining techniques; and
                    (B) is made by either--
                            (i) 2 Board-certified pathologists; and
                            (ii) 1 Board-certified pathologist who is, 
                        at the time that the diagnosis is verified, a 
                        member of the United States-Canadian 
                        Mesothelioma Reference Panel; and
            (2) medical information or testimonial information 
        sufficient to demonstrate a latency period of at least 10 
        years.

SEC. 203. MEDICAL CRITERIA--LUNG CANCER.

    (a) In General.--In order to meet the requirements for the lung 
cancer eligible medical category, a claimant shall be required to 
submit--
            (1) a diagnosis by a Board-certified pathologist, Board-
        certified pulmonary specialist, or Board-certified oncologist 
        of primary lung carcinoma;
            (2) medical information or testimonial information 
        sufficient to demonstrate a latency period of at least 12; and
            (3) either--
                    (A) evidence of a nonmalignant condition sufficient 
                to meet the requirements of section 201; or
                    (B) chest x-rays that, in the opinion of a 
                certified B-reader, demonstrate both asbestos-related 
                bilateral pleural plaques or asbestos-related bilateral 
                pleural thickening and evidence of 15 years of exposure 
                to asbestos, to be calculated as specified in 
                subsection (b), in accordance with paragraphs (1) 
                through (4) of that subsection.
    (b) Calculations.--The calculations made under subsection (a) shall 
be based on the following:
            (1) Each year that an exposed person's primary occupation, 
        during a substantial portion of a normal work year for that 
        occupation, involved working in areas immediate to where 
        asbestos-containing products were being installed, repaired, or 
        removed under circumstances that involved regular airborne 
        emissions of visible asbestos dust, shall count as 1 year.
            (2) Each year that an exposed person's primary occupation, 
        during a substantial portion of a normal work year for that 
        occupation, involved the direct installation, repair, or 
        removal of asbestos-containing products, shall count as 2 
        years.
            (3) Each year that an exposed person's primary occupation, 
        during a substantial portion of a normal work year for that 
        occupation, involved the direct manufacture of asbestos-
        containing products using raw asbestos fiber, or the direct 
        installation, repair, or removal of asbestos-containing 
        products in a shipyard during World War II, shall count as 4 
        years.
            (4)(A) Except as provided in subparagraph (B), for purposes 
        of calculating years of exposure under this subsection--
                    (i) each year of exposure prior to 1976 shall be 
                counted fully;
                    (ii) each year of exposure from 1976 through 1979 
                shall be counted \1/2\; and
                    (iii) exposures after 1979 shall not be counted.
            (B)(i) For each year from 1972 through 1975, for which it 
        is demonstrated by a preponderance of the evidence that the 
        exposed person's exposure to asbestos in the occupation of that 
        person was, during a substantial portion of that work year, in 
        compliance with the OSHA 8-hour time-weighted average airborne 
        concentration for asbestos exposure at that time, that year 
        shall count \1/2\ for purposes of calculating the years of 
        exposure for purposes of this subsection.
            (ii) For each year from 1976 through 1979 for which a 
        claimant demonstrates, by a preponderance of the evidence, that 
        the exposed person's exposure to asbestos in the occupation of 
        that person was, during a substantial portion of that work 
        year, in excess of the OSHA 8-hour time-weighted average 
        airborne concentration for asbestos exposure at that time, that 
        year shall count fully for purposes of calculating the years of 
        exposure for purposes of this subsection.
            (iii) For each year after 1979 for which a claimant 
        demonstrates, by a preponderance of the evidence, that the 
        exposed person's exposure to asbestos in the occupation of that 
        person was, during a substantial portion of that work year, in 
        excess of the OSHA 8-hour time-weighted average airborne 
        concentration for asbestos exposure at that time, that year 
        shall count \1/2\ for purposes of calculating years of exposure 
        for purposes of this subsection.

SEC. 204. MEDICAL CRITERIA--OTHER CANCER.

    In order to meet the requirements in the other cancer medical 
eligible category, a claimant shall be required to submit--
            (1) a diagnosis by a Board-certified pathologist, Board-
        certified pulmonary specialist, or Board-certified oncologist 
        (as appropriate for the type of cancer claimed) of primary 
        cancer of the colon or rectum, larynx, esophagus, or stomach;
            (2) medical or testimonial information sufficient to 
        demonstrate a latency period of at least 12 years; and
            (3) evidence of a nonmalignant condition sufficient to meet 
        the requirements of section 201.

SEC. 205. PROCEDURE FOR CERTIFICATE OF ELIGIBILITY.

    (a) Application.--A claimant may apply for a certificate of medical 
eligibility by submitting to the Corporation such information as the 
Corporation may require in a form designated by the Corporation, that 
includes a statement that the claimant is not required to retain an 
attorney in order to file and proceed with a claim and that includes 
the following:
            (1) Personal information.--The name, address, date of 
        birth, and death (if applicable), smoking history, occupational 
        history, and social security number of the exposed person, and 
        the relationship between the exposed person and the claimant if 
        the claimant is not the exposed person.
            (2) Exposure information.--The years of the exposed 
        person's exposure to asbestos or asbestos-containing products; 
        identification of the types of asbestos or asbestos-containing 
        products to which the exposed person was exposed; description 
of the circumstances, intensity, and duration of the exposure; and 
identification of the worksites or other such locations where such 
exposures occurred.
            (3) Medical information.--
                    (A) In general.--The Corporation may require 
                following medical information:
                            (i) The eligible medical category or 
                        categories for which the claimant is applying.
                            (ii) All medical diagnoses, reports and 
                        records that relate to any claimed asbestos-
                        related condition.
                            (iii) Materials supporting those diagnoses, 
                        reports and records that may be required by the 
                        Corporation, but in any event including all of 
                        the backup data for any pulmonary function 
                        tests on which the claimant relies (including 
                        all flow volume loops, spirographs, and any 
                        other tracings for any test that is performed).
                            (iv) An identification of all medical 
                        professionals and medical care facilities 
                        involved in diagnosing, treating, testing, 
                        counseling, or consulting with the exposed 
                        person concerning any medical condition within 
                        the 5-year period preceding the date on which 
                        that information is submitted to the 
                        Corporation.
                    (B) Additional information.--In addition to the 
                medical information under subparagraph (A), the 
                claimant shall also provide such medical releases as 
                the Corporation may require allowing the Corporation to 
                obtain any and all medical information relevant to the 
                determination of medical eligibility.
            (4) Exceptional medical claims.--The claimant may concede 
        that the claim cannot meet the requirements of any eligible 
        medical category and state that the claimant intends to apply 
        to an exceptional medical claims panel for designation as an 
        exceptional medical claim. In that event, the Corporation shall 
        refer the claim to an exceptional medical claim panel and the 
        application will be governed by the provisions of section 206.
    (b) Notification of Acceptance.--
            (1) In general.--The Corporation shall notify the claimant 
        within 30 days following receipt of the application that the 
        application either--
                    (A) is accepted for processing; or
                    (B) is materially incomplete and cannot be 
                processed until additional information is provided.
            (2) Notice for materially incomplete applications.--Any 
        notice that an application is materially incomplete shall 
        describe the missing information.
            (3) Requests for additional information.--The issuance of a 
        notice of acceptance shall not preclude the Corporation from 
        requesting additional information regarding a claim if the 
        Corporation subsequently concludes that such information is 
        necessary to make a decision on medical eligibility.
    (c) Records From Third Persons.--The Corporation may at any time 
obtain medical, employment, or other relevant records concerning an 
exposed person from persons other than the claimant. If the corporation 
seeks such additional records, the Corporation shall--
            (1) give notice to the claimant; and
            (2) upon request and at the claimant's expense, furnish 
        copies of all records obtained to the claimant.
    (d) Additional Medical Testing.--If the Corporation reasonably 
believes that the Corporation cannot determine, on the basis of the 
available medical information, whether an exposed person meets the 
medical criteria for 1 of the eligible medical categories, the 
Corporation may at any time, at its option and expense, require the 
exposed person to undergo appropriate, reasonable, and noninvasive 
medical examination or testing (excluding any sort of computed 
tomography (CT) scan).
    (e) Testimonial Information Under Oath.--All testimonial 
information provided to the Corporation in connection with a claim, 
other than information in any medical report or records, shall be 
made--
            (1) under oath;
            (2) by sworn affidavit; or
            (3) by written declaration subscribed to as true under 
        penalty of perjury.
    (f) Determination of Medical Eligibility.--
            (1) In general.--Subject to paragraph (2), as soon as 
        practicable and, but not later than 60 days after the issuance 
        of a notice of acceptance, the Corporation shall issue either--
                    (A) a certificate of medical eligibility stating 
                each eligible medical category for which the claimant 
                qualifies; or
                    (B) a finding of noneligibility.
            (2) Extension.--The Corporation may extend the period of 
        time beyond the period specified in paragraph (1) if the 
Corporation determines that extension to be necessary to secure 
additional information that is essential to the determination of 
medical eligibility.
            (3) Statement in reason.--If the claim is rejected wholly 
        or in part, the certificate of eligibility or finding of 
        noneligibility shall be accompanied by a brief written 
        statement of reasons.
    (g) Reconsideration.--
            (1) In general.--The claimant may seek reconsideration of 
        the Corporation's determination under subsection (f) by 
        submitting to the Corporation a written request for 
        reconsideration within 60 days after the date of the 
        Corporation's determination under subsection (f). The 
        Corporation may extend the time for submitting a request for 
        reconsideration upon the claimant's request. The request for 
        reconsideration shall include a statement of the grounds for 
        reconsideration and shall be accompanied by any additional 
        evidence on which the claimant relies.
            (2) Referral.--The Corporation shall refer a request for 
        reconsideration to a panel of 2 physicians with expertise in 
        the medical issue or issues raised by the claimant. The panel 
        of physicians may request further information from the 
        applicant or from third parties, or may require additional 
        medical examination or testing, in accordance with the 
        provisions of subsections (c) and (d).
            (3) Operation of panel.--The panel of physicians shall 
        consider the issues raised by the request for reconsideration 
        de novo on the basis of all of the evidence before the 
        Corporation. If the panel of physicians agrees on the 
        disposition of the request for reconsideration, the panel shall 
        render a decision. If the panel is not in agreement, the 
        Corporation shall appoint to the panel a third physician with 
        expertise in the issues raised by the claimant, and the panel 
        thus augmented will render a decision.
            (4) Acceptance or denial of requests.--
                    (A) Acceptance.--If the panel approves the request 
                for reconsideration, wholly or in part, the Corporation 
                shall issue a certificate of medical eligibility for 
                the eligible medical categories for which the panel 
                finds that the claimant qualifies.
                    (B) Denial.--If the panel denies the request for 
                reconsideration, or if the certificate of eligibility 
                on reconsideration rejects any claim made by the 
                claimant, wholly or in part, the panel shall provide a 
                brief written statement of reasons.
            (5) Action on request for reconsideration.--
                    (A) In general.--Subject to subparagraph (B), the 
                Corporation shall act upon a request for 
                reconsideration as soon as practicable but not later 
                than 30 days after receiving the request.
                    (B) Extensions.--The Corporation may extend the 
                period specified in subparagraph (A) if the Corporation 
                determines the extension to be necessary to secure 
                additional information that is essential to the 
                disposition of the request for reconsideration.
    (h) Reapplication.--After making an application under this title, a 
claimant may file a new application under this title at any time. Any 
such new application filed within 1 year after the date on which the 
Corporation issued a final finding of noneligibility shall identify the 
previous application and any relevant changes in circumstances.

SEC. 206. EXCEPTIONAL MEDICAL CLAIMS.

    (a) Exceptional Medical Claims Panel.--
            (1) In general.--The Corporation shall establish 1 or more 
        exceptional medical claims panels. Each exceptional medical 
        claims panel shall be comprised of 5 physicians, including--
                    (A) 2 Board-certified pulmonary specialists;
                    (B) 1 Board-certified radiologist (who is either a 
                certified B-reader or a specialist in computed 
                tomography); and
                    (C) 2 Board-certified pathologists.
            (2) Determinations.--Each exceptional medical claims panel 
        shall determine whether claims referred to the panel meet the 
        requirements of this section for designation as exceptional 
        medical claims.
    (b) Time To Apply.--
            (1) In general.--Subject to paragraph (2), a claimant may 
        apply to the Corporation for designation of his claim as an 
        exceptional medical claim if the claimant--
                    (A) concedes (either before or after a 
                determination is made under section 205(f)) that the 
                claim does not meet the medical criteria in sections 
                201 through 204; or
                    (B) seeks designation of the claim as an 
                exceptional medical claim within 60 days after a 
                determination on reconsideration under section 205(g) 
                that the claim does not meet the medical criteria in 
                sections 201 through 204, wholly or in part.
            (2) Prohibition.--The Corporation shall not accept any 
        application for designation as an exceptional medical claim, if 
        a claimant has--
                    (A) filed an action under section 208 for review of 
                the Corporation's determination on reconsideration; or
                    (B) commenced alternative dispute resolution 
                procedures under title III.
    (c) Contents of Application.--
            (1) In general.--The application for designation as an 
        exceptional medical claim shall include the information 
        required by the Corporation under section 205(a) and shall, in 
        addition, be supported, as appropriate for the eligible medical 
        category claimed, by the report of--
                    (A) a Board-certified internist;
                    (B) a Board-certified pulmonary specialist;
                    (C) a Board-certified pathologist; or
                    (D) a Board-certified oncologist.
            (2) Report.--The physician's report shall contain--
                    (A) a complete review of the exposed person's 
                medical history and current condition;
                    (B) such additional material by way of analysis and 
                documentation as shall be prescribed by the 
                Corporation; and
                    (C) a detailed explanation why the claim meets the 
                standard for acceptance as an exceptional medical claim 
                set forth in subsection (d).
    (d) Standard for Acceptance.--The exceptional medical claims panel 
shall designate a claim as an exceptional medical claim only if the 
claimant cannot satisfy the requirements for a given eligible medical 
category for reasons beyond the control of the claimant, but 
demonstrates, through clear and convincing evidence, that the exposed 
person has an asbestos-related condition that is substantially 
comparable to the condition of an exposed person who would satisfy the 
requirements of a given eligible medical category.
    (e) Further Testing.--The exceptional medical claims panel may 
order additional appropriate, reasonable, and noninvasive testing or 
examination of the exposed person (including computed tomography (CT) 
scanning). Tests ordered by an exceptional medical claims panel shall 
be made at the expense of the Corporation.
    (f) Decision.--The decision of the exceptional medical claims panel 
shall not be subject to further review within the Corporation. If the 
exceptional medical claims panel decides that a claim should be 
designated, wholly or in part, as an exceptional medical claim, the 
Corporation shall issue a certificate of medical eligibility which 
shall designate the claim as an exceptional medical claim and state the 
eligible medical category or categories for which the claim qualifies 
by virtue of that designation.

SEC. 207. CONFIDENTIALITY.

    The Corporation shall observe the requirements of section 552a of 
title 5, United States Code, with respect to information that it 
receives regarding a claimant or exposed person. The production of that 
information to respondents in accordance with section 303(c) shall be 
deemed a routine use of the information within the meaning of section 
552a(a)(7) of title 5, United States Code.

SEC. 208. JUDICIAL REVIEW.

    (a) In General.--
            (1) Judicial review.--The district courts of the United 
        States shall have exclusive jurisdiction, without regard to the 
        amount in controversy or the citizenship of the parties, of any 
        action to review a determination of the Corporation--
                    (A) after a reconsideration by the Corporation 
                under section 205(g); or
                    (B) with respect to designation as an exceptional 
                medical claim under section 206.
            (2) Certain determinations not reviewable.--A determination 
        under section 205(f) shall not be reviewable.
    (b) Period for Commencing Action.--
            (1) In general.--An action for review under this section 
        shall be commenced not later than 60 days after the later of, 
        as applicable--
                    (A) the determination on reconsideration made under 
                section 205(g) with respect to which review is sought; 
                or
                    (B) the decision that the claimant does not qualify 
                as an exceptional medical claim.
            (2) Effect of certain pending applications.--No action for 
        review under this section may be commenced while an application 
        for designation as an exceptional medical claim is pending.
    (c) Grounds for Upholding Determination.--The court shall uphold 
the determination of the Corporation if the determination is supported 
by substantial evidence on the record as a whole and is not contrary to 
law. Due account shall be taken of the rule of prejudicial error.
    (d) Records.--In applying the standard set forth in subsection (c), 
the record referred to in that subsection shall consist of--
            (1) the information submitted to the Corporation or the 
        exceptional medical claims panel by the claimant;
            (2) records and other information obtained by the 
        Corporation or exceptional medical claims panel relating to the 
        claim; and
            (3) the results of any medical tests administered at the 
        direction of the Corporation or exceptional medical claims 
        panel.

               TITLE III--ALTERNATIVE DISPUTE RESOLUTION

SEC. 301. RULES OF PROCEDURE.

    (a) In General.--The Board shall establish rules of procedure for 
the alternative dispute resolution process. Such rules of procedure 
shall be designed to ensure that claims will be resolved in a prompt, 
efficient, fair, and inexpensive manner and shall include--
            (1) reasonable time limits and rules regarding the time at 
        which actions of the Corporation become final;
            (2) procedures relating to the notification of respondents, 
        including reasonable and limited discovery;
            (3) procedures for the disclosure of information necessary 
        for settlement, including the timing of disclosure and 
        determination of the information that must be disclosed;
            (4) rules regarding protection of confidential information;
            (5) procedures for the selection of arbitrators;
            (6) arbitration procedures designed to further the 
        objective of prompt, efficient, fair and inexpensive dispute 
        resolution including simplified pleadings, reasonable 
        limitations on discovery, resolution of prehearing motions 
        including motions for summary disposition, appropriate, 
        evidentiary rules, and efficient conduct of hearings; and
            (7) procedures for just and reasonable sanctions to ensure 
        compliance with the rules and orders of the Corporation.
    (b) Representation by Counsel.--Parties shall have the right to be 
represented by counsel at all phases of the alternative dispute 
resolution process.
    (c) Effect of Presenting Statements.--By presenting to the 
Corporation any statement, motion, or other paper, counsel and the 
party represented by that counsel shall be considered to warrant that 
to the best of their knowledge, information, and belief, formed after 
reasonable inquiry--
            (1) the statement, motion, or other paper is not being 
        presented for any improper purpose;
            (2) the claims, defenses, or other legal contentions in 
        that statement, motion, or other paper are warranted by 
        applicable law or by a nonfrivolous argument for the extension, 
        modification, or reversal of applicable law for the 
        establishment of new law;
            (3) the allegations and other factual contentions have 
        evidentiary support; and
            (4) the denials of factual contentions are warranted on the 
        evidence.
    (d) Contract Service Providers.--The Corporation may contract with 
providers of alternative dispute resolution services to provide 
mediation or arbitration under this part. To the extent appropriate and 
consistent with this Act, the Board may adopt the rules of procedure of 
such contract service providers.

SEC. 302. MOTIONS OFFICERS.

    (a) In General.--Upon the issuance of a certificate of eligibility, 
the Corporation shall assign a motions officer to the claim.
    (b) Authority of Motions Officer.--
            (1) In general.--The motions officer shall have the 
        authority to determine all procedural issues in the alternative 
        dispute resolution process except such matters as may be within 
        the authority of a mediator or arbitrator assigned to the 
        claim.
            (2) Authority.--Without limitation, the motions officer 
        may--
                    (A) determine whether notice shall be provided to 
                any respondent under section 303 or 304;
                    (B) issue subpoenas to parties and nonparties for 
                testimony and documents, in accordance with the terms 
                of section 308;
                    (C) enter scheduling orders and other orders to 
                control the progress of the proceedings;
                    (D) resolve discovery disputes; and
                    (E) exercise any other authority conferred by 
                procedural rules, policies, or procedures established 
                by the Corporation.

SEC. 303. NOTICE TO RESPONDENTS.

    (a) In General.--
            (1) In general.--Within such time after receiving a final 
        certificate of eligibility as the Corporation may provide, a 
        claimant shall provide to the Corporation the name and address 
        of each person that claimant alleges is responsible for his 
        asbestos-related injury and for each such person a verified 
        particularized statement in a form prescribed by the 
        Corporation of the basis for the allegation that that person is 
        or may be responsible for his injury.
            (2) Contents of particularized statement.--A particularized 
        statement under paragraph (1) shall include, as applicable--
                    (A) the dates of exposure for each relevant time 
                period;
                    (B) the worksite or other place of exposure;
                    (C) the nature and frequency of the exposure;
                    (D) if the exposure was occupational, the name of 
                the exposed person's employer and a description of the 
                exposed person's job and working conditions;
                    (E) each asbestos-containing product or material to 
                which the claimant was exposed at each place of 
                exposure; and
                    (F) any other information that the Corporation may 
                require by rule or otherwise in all or in particular 
                classes of cases.
    (b) Notification.--
            (1) In general.--The Corporation shall promptly notify each 
        person identified by the claimant pursuant to subsection (a), 
        and for whom a complete particularized statement has been 
        submitted, that it has been named as a respondent.
            (2) Copies of particularized statements.--At the same time 
        as the Corporation provides the notification under paragraph 
        (1), the Corporation shall provide to each respondent a copy of 
        all particularized statements submitted to the Corporation 
        under subsection (a).
    (c) Information.--
            (1) In general.--Except as provided in paragraph (2), the 
        Corporation shall provide to each respondent, on request and at 
        the respondent's expense, a copy of all information submitted 
        to the Corporation by the claimant, records and other 
        information obtained by the Corporation relating to the claim 
        and the results of any medical tests administered at the 
        Corporation's direction.
            (2) Exception.--The Corporation shall not provide the 
        information described in this subsection to the respondent 
        until the respondent has received a protective order, signed by 
        or on behalf of the respondent, in a form prescribed by the 
        Corporation, that preserves the confidentiality of medical, 
        employment, and other information that the Corporation 
        reasonably designates as confidential.
    (d) Discovery.--
            (1) In general.--For good cause shown and subject to 
        reasonable limitations, a motions officer may allow discovery 
        for the purpose of obtaining information necessary to allow the 
        claimant to provide a particularized statement under subsection 
        (a).
            (2) Extensions.--The motions officer may grant reasonable 
        extensions of time for naming respondents in order to allow for 
        the completion of discovery under this subsection.

SEC. 304. ADDITIONAL RESPONDENTS.

    (a) In General.--
            (1) In general.--Any respondent notified pursuant to 
        section 303 may, within such period of time as the Corporation 
        may provide, identify additional respondents and request the 
        Corporation to notify these additional respondents by providing 
        to the Corporation the particularized statement required under 
        section 303(a) with respect to each such newly identified 
        respondent.
            (2) Acceptance of information.--For purposes of this 
        subsection, a respondent may accept as true any assertion made 
        by the claimant in a particularized statement submitted under 
        section 303(a), unless the respondent knows or with reasonable 
        investigation should know that that assertion is untrue.
    (b) Provision of Information.--As soon as practicable after the 
identification of additional persons under subsection (a), the 
Corporation shall provide to each additional person identified under 
that subsection--
            (1) the particularized statement required under that 
        subsection; and
            (2) the information provided to original respondents under 
        section 303 (b) and (c), subject to receiving the signed 
        protective order described in section 303(c).
    (c) Rights of Additional Respondents.--Additional respondents 
notified under this section shall have the same right to add further 
additional respondents as is conferred upon originally named 
respondents under subsection (a).
    (d) Discovery.--
            (1) In general.--For good cause shown and subject to 
        reasonable limitations, a motions officer may allow discovery 
        for the purpose of obtaining information necessary to allow a 
        respondent to provide the information required under subsection 
        (a).
            (2) Extensions.--The motions officer may grant reasonable 
        extensions of time for naming additional respondents in order 
        to allow for the completion of discovery under this subsection.
    (e) Notice of Expiration of Period for Adding Additional 
Respondents.--The Corporation shall provide notice to all parties at 
the time that period for adding additional respondents has expired. No 
new party shall be added to the proceeding after the expiration of that 
period, except on motion for good cause.

SEC. 305. GRACE PERIOD.

    The Corporation shall establish a grace period of not to exceed 60 
days after expiration of the period of time for adding additional 
respondents referred to in section 304, during which the parties shall 
be encouraged to reach voluntary settlements without the need for 
mediation.

SEC. 306. MEDIATION.

    (a) Appointment of Mediator.--Upon the expiration of a grace period 
referred to in section 305, the Corporation shall appoint a mediator to 
assist the parties who have not settled in the grace period in settling 
the claim.
    (b) Disclosure of Information Necessary for Settlement.--
            (1) In general.--Within such period of time after 
        appointment of a mediator as the Corporation shall prescribe, 
        each party shall serve upon all other nonsettling parties a 
        statement of information required for settlement.
            (2) Information included.--The information to be included 
        in a statement referred to in paragraph (1) shall be determined 
        by the Corporation to be reasonably necessary for the parties 
        to evaluate the claim.
            (3) Incorporation by reference.--With respect to a 
        statement referred to in paragraph (1), information previously 
        provided to the Corporation by any party may be incorporated by 
        reference and need not be resubmitted.
            (4) Rule of construction.--Nothing in this subsection shall 
        be construed to require the disclosure of any information 
        privileged under applicable law.
    (c) Time Limits.--
            (1) In general.--Except as provided in paragraph (2), 
        mediation conducted under this section shall be completed not 
        later than 60 days after the appointment of the mediator.
            (2) Extension.--The time period specified in paragraph (1) 
        may be extended by the mediator if--
                    (A)(i) the claimant has failed to provide the 
                information required under subsection (b); and
                    (ii) that extension is necessary to allow for 
                simultaneous mediation of a group of claims, or for 
                other good cause; or
                    (B) for a period not to exceed 60 days, if in the 
                judgment of the mediator, the claimant's final demand 
                under subsection (e) is not made in good faith, on 
                consideration of the legal and factual basis of the 
                claim.
    (d) Confidentiality.--All statements made by any party in mediation 
shall be confidential and shall not be admissible in any trial or 
arbitration except as allowed under rule 408 of the Federal Rules of 
Evidence.
    (e) Good Faith Offers and Demands.--
            (1) Good faith offers.--On the date that is 15 days before 
        the close of the mediation period, the claimant shall provide 
        to each nonsettling respondent or jointly represented group of 
        respondents a final good faith demand of settlement.
            (2) Good faith offers in reply.--On the date that is 10 
        days before the close of the mediation period, each respondent 
        or jointly represented group of respondents shall make a final 
        good faith offer in reply.
            (3) Failure to make a settlement offer.--If a respondent or 
        jointly represented group of respondents fails to make a 
        settlement offer under this section, that respondent or group 
        of respondents shall be deemed to have made a settlement offer 
        of $0.
            (4) Efforts of mediator.--During the 10-day period 
        preceding the close of the mediation period, or any extension 
        of that 10-day period, the mediator shall work with the parties 
        in a further effort to settle the claim.
    (f) Release From Mediation.--
            (1) In general.--At the close of the mediation period under 
        this section, the mediator shall issue to the claimant a 
        release from mediation.
            (2) Effect of release.--After the issuance of a release 
        from mediation under paragraph (1), the claimant may commence a 
        civil action or may elect arbitration under section 307.

SEC. 307. ARBITRATION.

    (a) Election To Arbitrate.--A claimant may elect arbitration under 
this section by serving notice of such election within 30 days 
following release from mediation on all respondents that have not 
previously settled. All such respondents will be parties to the 
arbitration.
    (b) Federal Arbitration Act.--All arbitrations hereunder shall be 
subject to the provisions of title 9, United States Code, that are 
commonly referred to as the Federal Arbitration Act including sections 
1 through 6 and 8 through 16 of that title, except that, the provisions 
of this Act and rules adopted by the Corporation under this Act shall 
be effective notwithstanding any inconsistent provision of title 9, 
United States Code.
    (c) Arbitration by Special Agreement.--Nothing in this section 
shall be construed as prohibiting consensual arbitration pursuant to a 
special agreement entered into by the claimant and 1 or more of the 
respondents. The terms of such a special agreement shall prevail, as to 
the parties to that agreement, over the provisions of this section 
(other than subsection (h)) and any rules adopted pursuant to section 
301.
    (d) Statutory Arbitration.--In the absence of a special agreement 
to arbitrate, arbitrations shall be conducted under rules adopted by 
the Corporation pursuant to section 301.
    (e) Subpoena Powers of Arbitrators.--Arbitrators may issue 
subpoenas to parties and nonparties for testimony and documents in 
accordance with the terms of section 308.
    (f) Law To Be Applied.--
            (1) In general.--Subject to paragraph (2) and unless 
        otherwise provided in this Act, the arbitrator shall, with 
        respect to each respondent, apply the law, including the law 
        relating to choice of law, that would be applied by a court 
        designated by the claimant which would have jurisdiction over 
        that respondent.
            (2) Exception.--If a respondent demonstrates to the 
        satisfaction of an arbitrator that the court designated by the 
        claimant would dismiss or transfer under forum non conveniens 
        or a similar doctrine, then the arbitrator shall apply the law 
        of the State that has the most significant relationship to the 
        occurrence and the parties.
    (g) Presumption Applicable to Medical Determination.--A finding of 
medical eligibility by the Corporation shall be presumed correct and 
shall be conclusive unless rebutted by clear and convincing evidence, 
except that, to the extent that the finding of medical eligibility is 
based upon evidence of exposure to asbestos, proof with respect to such 
exposure shall be determined in accordance with applicable State law.
    (h) Awards.--The arbitrator shall issue awards with respect to each 
respondent within time periods set by the Corporation. The awards shall 
be accompanied by findings of fact and conclusions of law. Each 
respondent shall be jointly and severally liable to the claimant to the 
extent provided by applicable State law, as follows:
            (1)(A) In any case in which joint and several liability 
        exists under applicable State law, the arbitrator shall 
        determine the total joint and several liability of all 
        respondents that have not been released by the claimant or 
        dismissed from the proceeding.
            (B) In addition to making a determination under 
        subparagraph (A), the arbitrator shall determine the amount 
        allocable to each such respondent based on principles of 
        comparative fault or responsibility.
            (C)(i) Subject to clause (ii), any respondent who has 
        obtained a release from the claimant prior to the issuance of 
        the arbitrator's award shall be fully protected from claims for 
        contribution or indemnity.
            (ii) In any case in which a respondent obtains a release, 
        the award against the remaining respondents shall be reduced by 
        the greater of--
                    (I) consideration paid; or
                    (II) the amount stated in the release.
            (iii) The total award, reduced by the aggregate amount of 
        reductions determined under clause (ii) for all respondents 
        receiving a release, shall be allocated among the remaining 
        respondents according to the arbitrator's allocation of 
        comparative shares of fault or responsibility.
            (2) In any case in which joint and several liability has 
        been abolished under applicable State law, the arbitrator shall 
        determine in accordance with the law of that State the share of 
        several liability (referred to in this subsection as the 
        ``several share'') of each respondent that has not been 
        released or dismissed from the proceeding.
            (3) In any case in which joint and several liability has 
        been abolished under applicable State law with respect to only 
        a portion of damages, the arbitrator shall determine in 
        accordance with applicable State law--
                    (A) the several share of each respondent that has 
                not been released or dismissed from the proceeding; and
                    (B) the total amount of joint and several liability 
                of all such respondents.
            (4) The allocation of the joint and several portion of the 
        award among the respondents, and the reduction of the total 
        award on account of settlements, shall be made in accordance 
        with subsection (h)(1), except that--
                    (A) only the joint and several portion of an award 
                may be reduced by amounts paid in settlement by 
                released persons; and
                    (B) only that portion of the amount paid by any 
                released person in settlement with respect to the joint 
                and several portion of damages shall be so applied to 
                reduce the award.
    (i) Contribution Rights Retained by Respondents in ADR.--
            (1) In general.--The entry of an arbitration award against 
        any respondent under this section shall give rise to a right of 
        contribution on the part of that respondent against any joint 
        tortfeasor whose liability is extinguished by the award without 
        the necessity that the award be enforced as a court judgment.
            (2) Effect of settlement.--A settlement between a 
        respondent and a claimant under this section that extinguishes 
        in whole or in part the liability of a joint tortfeasor shall 
        not extinguish the settling respondent's right of contribution 
        against that joint tortfeasor.
    (j) Penalty for Inadequate Offer in Mediation.--
            (1) In general.--If the final offer made by a respondent or 
        jointly represented group of respondents under section 306(e) 
        is less than the amount specified in paragraph (2), the 
        arbitrator shall add a 10-percent penalty to the award against 
        that respondent or each member of the group of respondents.
            (2) Amount.--The amount specified in this paragraph is, 
        with respect to a respondent or a jointly represented group of 
        respondents, an amount equal to 75 percent of the share of the 
        total liability (exclusive of prejudgment interest, if any) 
        awarded in arbitration against that respondent or that group of 
        respondents as a whole, the arbitrator shall add a 10-percent 
        penalty to the award against such respondent or each member of 
        such group of respondents.
            (3) Exclusion.--A penalty added under paragraph (1) shall 
        not be counted in any determination of maximum allowable 
        attorneys' fees under section 503.
    (k) Consolidations.--Claims with respect to multiple exposed 
persons shall not be consolidated for hearing on the merits without the 
consent of all parties.

SEC. 308. SUBPOENA POWERS OF MOTIONS OFFICERS AND ARBITRATORS.

    (a) In General.--A motions officer or an arbitrator under this 
title may summon in writing any person to attend before that officer or 
arbitrator as a witness, or to appear for a deposition, and in a proper 
case to bring with him or her any book, record, document, or paper 
which may be deemed material as evidence in the case.
    (b) Fees.--The fees for attendance under subsection (a) shall be 
the same as the fees of witnesses before masters of the United States 
courts.
    (c) Summons.--
            (1) In general.--A summons under this section shall--
                    (A) be issued in the name of the motions officer or 
                arbitrator;
                    (B) be signed by the motions officer or arbitrator;
                    (C) be directed to the person summoned; and
                    (D) be served in accordance with rule 45(b)(1) of 
                the Federal Rules of Civil Procedure.
            (2) Effect of refusal or neglect.--If any person summoned 
        to testify or produce documents under paragraph (1) refuses or 
        neglects to obey that summons, upon petition, the United States 
        District Court for the District of Columbia or the district 
        court for the district in which the testimony is to be taken or 
        the document production is to take place may, in the same 
        manner provided by law for securing the attendance of witnesses 
        or for the punishment of witnesses for neglect or refusal to 
        attend in the courts of the United States--
                    (A) compel--
                            (i) the attendance of that person before 
                        the motions officer or arbitrator;
                            (ii) the appearance of that person for a 
                        deposition; or
                            (iii) the production of documents; or
                    (B) punish that person for contempt.

                        TITLE IV--CIVIL ACTIONS

SEC. 401. PREREQUISITES FOR CIVIL ACTION.

    Subject to section 702, no civil action asserting any asbestos 
claim may be filed or maintained unless the plaintiff has obtained a 
certificate of medical eligibility and release from mediation.

SEC. 402. INDIVIDUAL TRIALS.

    (a) In General.--No class action suit, joinder of parties, 
aggregation of claims, consolidation of actions, extrapolation, or 
other device to determine multiple asbestos claims on a collective 
basis shall be permitted without the consent of each defendant.
    (b) Removal.--Any defendant in a civil action that involves a 
violation of this section may remove such action to an appropriate 
Federal district court.
    (c) Jurisdiction.--The district courts of the United States shall 
have jurisdiction of all civil actions removed pursuant to this section 
without regard to diversity of citizenship or amount in controversy.

SEC. 403. CERTIFICATE OF MEDICAL ELIGIBILITY PRESUMED CORRECT.

    A finding of medical eligibility by the Corporation shall be 
presumed correct and shall be conclusive unless rebutted by clear and 
convincing evidence, except that, to the extent that a finding of 
medical eligibility is based on evidence of exposure to asbestos, the 
burden of proof with respect to such exposure shall be determined in 
accordance with applicable State law.

SEC. 404. PENALTY FOR INADEQUATE OFFER IN MEDIATION.

    (a) In General.--If the final offer made by a respondent or jointly 
represented group of respondents under section 306(e) is less than the 
amount specified in paragraph (2), the court shall add a 10-percent 
penalty to the award against that respondent or each member of the 
group of respondents.
    (b) Amount.--The amount specified in this paragraph is, with 
respect to a respondent or a jointly represented group of respondents, 
an amount equal to 75 percent of the share of the total liability 
(exclusive of prejudgment interest, if any) assigned by the jury or 
other fact finder to that respondent or that group of respondents as a 
whole, the arbitrator shall add a 10-percent penalty to the award 
against such respondent or each member of such group of respondents.
    (c) Exclusion.--A penalty added under paragraph (1) shall not be 
counted in any determination of maximum allowable attorneys' fees under 
section 503.

      TITLE V--RULES APPLICABLE TO ARBITRATIONS AND CIVIL ACTIONS

SEC. 501. ELEMENTS OF PROOF; RELIEF.

    Subject to section 702 and notwithstanding any other provision of 
law, the following shall apply in all civil actions and arbitrations 
involving an asbestos claim:
            (1) Basic requirement of eligible medical condition.--No 
        person shall recover in any civil action or arbitration damages 
        or other relief with respect to an asbestos claim unless that 
        person establishes, by evidence meeting the requirements of 
        section 201, 202, 203, 204, or 206, as appropriate, the 
        existence of an eligible medical condition.
            (2) Issues to be decided.--
                    (A) In general.--Subject to subparagraph (B), the 
                only issues that may be decided in any civil action or 
                arbitration involving an asbestos claim are--
                            (i) whether the exposed person with respect 
                        to whom a claim is made has or had an asbestos-
                        related disease or condition;
                            (ii) whether the exposure of the expose 
                        person to asbestos or an asbestos-containing 
                        product of a defendant or respondent was a 
                        substantial contributing factor in causing that 
                        asbestos-related disease or condition; and
                            (iii) the amount of compensatory damages, 
                        if any to be awarded.
                    (B) Determination of compensatory damages.--In 
                addition to the issues referred to in subparagraph (A), 
                in any proceeding in which, under applicable law, the 
                share of compensatory damages allocable to a defendant 
                or respondent is relevant to an issue described in that 
                subparagraph, the share of compensatory damages of that 
                defendant or respondent shall be determined.
                    (C) Prohibition.--No evidence that is not relevant 
                to an issue referred to in subparagraph (A) or (B) may 
                be offered by a claimant against a defendant or 
                respondent in any civil action or arbitration involving 
                an asbestos claim.
            (3) Emotional distress; medical monitoring.--No damages or 
        other relief shall be awarded in any civil action or 
        arbitration involving an asbestos claim for emotional distress 
        or any other form of mental or emotional harm, or for medical 
        monitoring or surveillance, based wholly or in part on exposure 
        to asbestos unless the requirements of paragraph (1) are met in 
        addition to any other requirement under applicable law for 
        recovery of damages or other relief for emotional distress or 
        medical monitoring or surveillance.
            (4) Enhanced risk.--No damages or other relief shall be 
        awarded in any civil action or arbitration involving an 
        asbestos claim solely for increased risk of cancer or other 
        disease.
            (5) Punitive damages.--No punitive damages shall be awarded 
        in any civil action or arbitration involving an asbestos claim.

SEC. 502. TIMELINESS DEFENSES ABOLISHED.

    No defense to an asbestos claim based on a statute of limitations 
or statute of repose, laches, or any other defense based on the 
timeliness of the claim shall be recognized or allowed in any civil 
action or arbitration unless that claim was untimely as of the date of 
enactment of this Act.

SEC. 503. ATTORNEYS' FEES.

    (a) In General.--Notwithstanding any other provision of law or any 
contract, the aggregate amount of fees, including expenses and other 
charges, of a claimant's attorneys in any proceeding covered under this 
Act shall not exceed an amount equal to 25 percent of the amount of 
compensation received by the claimant as a result of that proceeding.
    (b) Rules of Procedure.--The Corporation shall establish rules of 
procedure that require any attorney who represents a claimant in any 
proceeding covered under this Act to submit an itemized statement of 
expenses and fees to the Corporation before receiving any fee.
    (c) Penalties.--Any attorney who charges, demands, receives, or 
collects, for services rendered in connection with any proceeding under 
this Act, an amount that exceeds the amount that is allowable under 
this Act shall--
            (1) be guilty of a misdemeanor; and
            (2) upon conviction, be subject to a fine of not more than 
        $10,000, imprisonment for not more than 1 year, or both.

SEC. 504. EFFECT ON SUBSEQUENT ACTIONS.

    (a) In General.--Notwithstanding any other provision of law, a 
judgment or settlement of an asbestos claim for a nonmalignant 
condition satisfying the requirements of section 201 shall not preclude 
a subsequent claim with respect to the same exposed person for a 
malignant condition satisfying the requirements of section 202, 203, 
204, or 206, as applicable.
    (b) Rule of Construction.--Subsection (a) shall not be construed to 
invalidate any provision of a settlement agreement entered into prior 
to the date of enactment.

                           TITLE VI--FUNDING

SEC. 601. COSTS OF MEDICAL REVIEW AND OVERHEAD AND ADMINISTRATION.

    (a) Provisional Allocation.--
            (1) Estimate of costs.--
                    (A) In general.--On or before August 1 of each 
                year, the Corporation shall estimate the costs of the 
                Corporation (exclusive of the cost of mediation and 
                arbitration that may be recovered under section 602) 
                for the following fiscal year (beginning on October 1 
                of that year).
                    (B) Allowances for contingencies; costs of medical 
                review, overhead, and administration.--In estimating 
                its costs under this section, the Corporation shall--
                            (i) make reasonable allowances for 
                        contingencies; and
                            (ii) state separately those costs directly 
                        related to--
                                    (I) medical review; or
                                    (II) general overhead and 
                                administration of the Corporation.
            (2) Allocation to respondents.--
                    (A) In general.--The Corporation shall 
                proportionally allocate the costs estimated pursuant to 
                paragraph (1) among all persons named as a respondent 
                during the 12-month period ending the preceding June 30 
                and shall notify each such person of the amount due 
                pursuant to that allocation.
                    (B) Determination of respondents.--In this section, 
                a person shall be considered named as a respondent if 
                notice was provided to that person under section 303 or 
                304.
                    (C) Determination of number of proceedings.--In 
                making an allocation under subparagraph (B), the 
                Corporation shall determine the following:
                            (i) For each individual respondent, the 
                        total number of proceedings in which the 
                        respondent has been named.
                            (ii) The total combined number of 
                        proceedings for all respondents.
                    (D) Counting claims.--For purposes of a 
                determination under subparagraph (C) all claims, 
                including derivative claims, relating to 1 exposed 
                person shall be counted as 1 proceeding for each 
                respondent named in the proceeding.
                    (E) Determination of allocation.--In calculating an 
                allocation made in accordance with subparagraph (A), 
                the total number of proceedings for each respondent 
                shall be divided by the total combined number of 
                proceedings for all respondents to determine the 
                percentage of costs allocable to each individual 
                respondent.
                    (F) Prohibition.--The Corporation shall not 
                allocate any of the costs estimated pursuant to 
                paragraph (1) to any respondent whose allocable share 
                of the costs, in the absence of such exclusion, is less 
                than a de minimis percentage established by the 
                Corporation. Any such unallocated percentage shall be 
                reallocated to the remaining respondents based upon 
                their original allocation percentages.
            (3) Payment of estimated share of costs.--Each respondent 
        shall pay to the Corporation the allocated share of the 
        respondent of the estimated costs of the Corporation not later 
        than 30 days after the date of notification of the allocated 
        share of the respondent.
    (b) Final Allocation.--
            (1) In general.--On or before November 30 of each year, the 
        Corporation shall determine the total costs of the Corporation 
        (exclusive of the cost of mediation and arbitration that may be 
        recovered from respondents under section 602) for the preceding 
        fiscal year ending September 30 and shall allocate those costs 
        proportionally, in the manner described in subsection (a)(2), 
        among persons who were named as respondents in that fiscal 
        year.
            (2) Attribution of costs.--In making an allocation under 
        this subsection, the Corporation shall state separately those 
        costs directly attributable to--
                    (A) the medical review process; or
                    (B) general overhead and administration of the 
                Corporation.
            (3) Payment of deficiencies.--If the amount allocated to 
        any person under this subsection is greater than the amount 
        deposited by such person under subsection (a)(2) with respect 
        to the preceding fiscal year, that person shall pay the 
        deficiency to the Corporation not later than 30 days after 
        receiving a notice of deficiency from the Corporation.
            (4) Refunds.--If the amount allocated to any person under 
        this subsection is less than the amount deposited by such 
        person under subsection (a)(2) for the preceding fiscal year, 
        the Corporation shall promptly refund the difference to that 
        respondent.
    (c) Transitional Provisions.--
            (1) Startup funding.--
                    (A) In general.--Startup funding shall be provided 
                by voluntary contributions within 30 days after 
                appointment and confirmation of the first director of 
                the Board. Those contributions shall be provided by the 
                signatories to a startup funding agreement that all of 
                the defendants shall enter into before that date, in 
                accordance with, and contingent only on the terms and 
                conditions contained in that agreement.
                    (B) Refund of contributions.--Unless the 
                Corporation and the donor otherwise agree, the 
                Corporation shall refund contributions made under 
                subparagraph (A) following receipt of the funds 
                allocated pursuant to the initial determination of 
                costs and assessments to defendants provided in 
                subsection (c)(2).
                    (C) Startup costs defined.--For purposes of this 
                subsection, startup costs include all reasonable and 
                necessary expenses of the Corporation incurred prior to 
                the availability of transitional funding under 
                paragraph (2).
            (2) Transitional funding.--
                    (A) Notice.--As soon as feasible after a majority 
                of the Board is appointed and confirmed, the Board 
                shall provide notice requesting the information listed 
                in subparagraph (B) to each defendant served in any 
                civil action involving an asbestos claim pending on the 
                date of enactment of this Act. The notice shall be the 
                best practicable notice under the circumstances, 
                including publication in the Federal Register and 
                individual notice to any defendant that can be 
                identified through reasonable effort.
                    (B) Information to be provided.--Within such time 
                as the Corporation may prescribe, but not less than 60 
                days after the date of publication in the Federal 
                Register, each person who, as of the date of enactment 
                of this Act, has been served as a defendant in at least 
                5,000 pending civil actions involving asbestos claims 
                shall provide to the Corporation a statement containing 
                the following information:
                            (i) The total number of civil actions in 
                        which that person was named as a defendant.
                            (ii) With respect to each civil action 
                        referred to in clause (i)--
                                    (I) the name of the lead plaintiff;
                                    (II) the name of the lead 
                                defendant;
                                    (III) the court in which the civil 
                                action was pending; and
                                    (IV) the docket number.
                    (C) Counting rules.--For purposes of subparagraph 
                (B):
                            (i) All asbestos claims relating to a 
                        single exposed person, including derivative 
                        claims, shall be treated as 1 civil action 
                        regardless of the number of plaintiffs or 
                        defendants named in the complaint.
                            (ii) In civil actions involving multiple 
                        plaintiffs and defendants, each asbestos claim 
                        shall be deemed to have been asserted against 
                        each defendant unless the complaint states 
                        otherwise.
                            (iii) Third-party defendants shall 
                        calculate the number of civil actions involving 
                        asbestos claims pending against them as if they 
                        had been joined as a defendant by the original 
                        plaintiff or plaintiffs.
                            (iv) Cross claims, deemed or otherwise, 
                        shall not count as a separate civil action.
                    (D) Signature.--The statement of information 
                required under this paragraph shall be signed on behalf 
                of the defendant by a corporate officer or (in the case 
                of a defendant that is not a corporation) a senior 
                official comparable to a corporate officer, authorized 
                to bind such defendant, attesting under penalty of 
                perjury that the information contained therein is true 
                and complete to the best of his knowledge and belief 
                after reasonable investigation.
                    (E) Allocation and payment.--
                            (i) In general.--The Corporation shall--
                                    (I) proportionally allocate the 
                                estimated costs of the Corporation for 
                                a transitional period to include the 
                                first 2 fiscal years after the date of 
                                enactment of this Act, in substantially 
                                the same manner as the allocation 
                                described in subsection (a)(2), to the 
                                defendants identified in this 
                                paragraph; and
                                    (II) notify each such defendant of 
                                its proportionate share of such 
                                estimated transitional costs.
                            (ii) Payment.--Not later than 45 days after 
                        the date on which a defendant receives a notice 
                        made under clause (i)(II), that defendant shall 
                        pay its share of the estimated transitional 
                        costs to the Corporation.
            (3) Reconciliation.--
                    (A) In general.--On or before November 30 following 
                the end of the transitional period, the Corporation 
                shall--
                            (i) determine the total costs of the 
                        Corporation (exclusive of the cost of mediation 
                        and arbitration that may be recovered from 
                        respondents under section 602) for the 
                        transitional period, including start-up costs; 
                        and
                            (ii) proportionally allocate those costs, 
                        in substantially the same manner as the 
                        allocation described in subsection (a)(2), 
                        among defendants who were named as respondents 
                        during that transitional period.
                    (B) Statement of costs.--In making an allocation 
                under this subsection, the Corporation shall state 
                separately those costs directly attributable to--
                            (i) the medical review process; or
                            (ii) general overhead and administration of 
                        the Corporation.
                    (C) Payment of deficiencies.--If the amount 
                allocated to any respondent under this subsection is 
                greater than the amount deposited by such respondent 
                under paragraph (2), that respondent shall pay the 
                deficiency to the Corporation within 30 days after 
                receiving a notice of deficiency from the Corporation.
                    (D) Refunds.--If the amount allocated to any 
                respondent under this subsection is less than the 
                amount deposited by such respondent under paragraph 
(2), the difference shall be refunded promptly.

SEC. 602. COST OF MEDIATION AND ARBITRATION.

    (a) Mediation.--The cost of mediation shall be charged, on a per 
capita basis, to each respondent who participated in the mediation, 
wholly or in part.
    (b) Arbitration.--In the absence of an agreement among the parties 
to the contrary, the cost of arbitration shall be charged, on a per 
capita basis, to each respondent who participated in the arbitration, 
wholly or in part, except that, the Corporation may by rule provide for 
a reduction in the costs charged to respondents who settle or are 
dismissed from arbitration prior to the commencement of the hearing.

SEC. 603. INFORMAL DISPUTE RESOLUTION.

    (a) Procedures.--The Corporation shall establish expeditious 
procedures for the informal resolution of disputes regarding the 
assessment of costs under this title. The Corporation may, in its sole 
discretion, postpone the obligation to pay the disputed assessment, 
wholly or in part, during the pendency of informal dispute resolution 
procedures.
    (b) Voluntary Procedures.--The Corporation may agree to participate 
in voluntary alternative dispute resolution procedures, including 
mediation and arbitration, to resolve disputes regarding assessments.

SEC. 604. JUDICIAL REVIEW; ENFORCEMENT.

    (a) Jurisdiction.--
            (1) In general.--The district courts of the United States 
        shall have exclusive jurisdiction, without regard to the amount 
        in controversy or citizenship of the parties, to review any 
        assessment of costs made by the Corporation pursuant to this 
        title.
            (2) Treatment of challenged assessment.--The reviewing 
        court shall uphold a challenged assessment unless that court 
        determines that that assessment is arbitrary and capricious or 
        otherwise not in accordance with law.
            (3) Procedures.--No action under this subsection may be 
        commenced or maintained by any person unless that person first 
        has--
                    (A) exhausted the informal dispute resolution 
                procedures provided under section 603; and
                    (B) paid to the Corporation the entire amount 
                assessed to that person by the Corporation, including 
                the amount in dispute.
    (b) Authority of Corporation.--
            (1) In general.--The Corporation shall have the authority 
        to bring an action in a district court of the United States to 
        enforce any obligation imposed on any person by this title.
            (2) Jurisdiction.--In an action brought under paragraph 
        (1), the district court of the United States shall have 
        exclusive jurisdiction of such action without regard to the 
        amount in controversy or citizenship of the parties.
            (3) Defenses.--The court shall not entertain any defense 
        other than lack of jurisdiction in any action by the 
        Corporation to recover assessments due under this title unless 
        the assessment is fully paid, with interest. If the assessment 
        is fully paid, with interest, the court shall uphold the 
        Corporation's determination that a determination is not 
        arbitrary and capricious or otherwise contrary to law.
            (4) Payment of costs.--In any action under this subsection 
        in which the Corporation prevails, the Corporation shall be 
        entitled to costs, including reasonable attorneys' fees, and 
        interest on any unpaid funds. Interest under this subsection 
        shall be equal to the rate applicable to underpaid taxes under 
        section 6621 of the Internal Revenue Code of 1986.

SEC. 605. PENALTIES.

    If any person who is required by section 601 to provide information 
to the Corporation willfully fails to provide that information within 
the period of time specified by the Corporation, that person shall 
forfeit to the Corporation an amount equal to $50,000. That forfeiture 
shall be payable to the Corporation, and shall be recoverable in a 
civil suit in the name of the Corporation brought under section 604(b).

SEC. 606. ASBESTOS RESOLUTION CORPORATION TRUST FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a trust fund, to be known as the Asbestos Resolution 
Corporation Trust Fund (in this section referred to as the ``Trust 
Fund''), consisting of such amounts as are transferred to the Trust 
Fund under subsection (b) and any interest earned on investment of 
amounts in the Trust Fund under subsection (c)(2).
    (b) Transfer of Amounts Equivalent to Certain Tariffs.--The 
Corporation shall transfer to the Secretary of the Treasury for deposit 
in the Trust Fund any--
            (1) amounts paid to the Corporation under sections 601 and 
        602;
            (2) amounts received by the Corporation as voluntary 
        donations;
            (3) interest earned on deposits made by the Corporation;
            (4) amounts received by the Corporation as judgments, costs 
        (including reasonable attorneys' fees) and interest under 
        section 604 or any other applicable provision of law; and
            (5) penalties paid to the Corporation under section 605.
    (c) Investment of Trust Fund.--
            (1) In general.--It shall be the duty of the Secretary of 
        the Treasury to invest such portion of the Trust Fund as is 
        not, in the Secretary's judgment, required to meet current 
        withdrawals. Such investments may be made only in interest-
        bearing obligations of the United States or in obligations 
        guaranteed as to both principal and interest by the United 
        States.
            (2) Sale of obligations.--Any obligation acquired by the 
        Trust Fund (except special obligations issued exclusively to 
        the Trust Fund) may be sold by the Secretary of the Treasury at 
        the market price, and such special obligations may be redeemed 
        at par plus accrued interest.
            (3) Credits to trust fund.--The interest on, and the 
        proceeds from the sale or redemption of, any obligations held 
        in the Trust Fund shall be credited to and form a part of the 
        Trust Fund.
    (d) Obligations From Trust Fund.--The Corporation may obligate such 
sums as are available in the Trust Fund (including any amounts not 
obligated in previous fiscal years) in a manner consistent with this 
Act. Amounts in the Trust Fund shall be available for obligation 
without fiscal year limitation.

            TITLE VII--APPLICABILITY; PENDING CIVIL ACTIONS

SEC. 701. APPLICABILITY.

    Subject to section 702, beginning on the date of enactment of this 
Act, this Act shall apply to any civil action asserting an asbestos 
claim that has not resulted in a final, nonappealable judgment.

SEC. 702. PENDING CIVIL ACTIONS.

    (a) In General.--
            (1) Certificates of medical eligibility.--A certificate of 
        medical eligibility shall not be required in any civil action 
        asserting an asbestos claim if--
                    (A) that action was pending on the date of 
                enactment of this Act; and
                    (B) a trial commences prior to the operational 
                date. No release from mediation shall be required in 
                any civil action asserting an asbestos claim if the 
                action was pending on the date of enactment, whether or 
                not trial commences prior to the operational date.
    (b) Elections.--Prior to the operational date, a plaintiff in a 
civil action asserting an asbestos claim that is pending on the date of 
enactment may elect to submit that claim to the Corporation for a 
determination of medical eligibility. Any such election shall be 
irrevocable.
    (c) Burden of Proof.--Notwithstanding any other provision of law, 
the plaintiff in any civil action asserting an asbestos claim who has 
not obtained a certificate of medical eligibility shall have the burden 
of establishing the existence of an asbestos-related condition that 
meets the criteria for an eligible medical category pursuant to 
sections 201 through 204.

                  TITLE VIII--MISCELLANEOUS PROVISIONS

SEC. 801. APPLICABILITY OF OTHER FEDERAL LAWS.

    (a) In General--Nothing in this Act shall be construed to make any 
director, officer, or employee of the Corporation, an officer or 
employee of the Federal Government for purposes of title 5, United 
States Code. Neither the Corporation nor any director, officer, or 
employee of the Corporation shall be subject to section 1341(a) of 
title 31, United States Code.
    (b) Applicability of Certain Administrative Provisions.--To the 
extent consistent with the provisions of this Act, the Corporation 
shall be subject to the requirements of sections 552a, 553, 555, and 
706 of title 5, United States Code.
    (c) Disclosure of Information.--In order to preserve the integrity 
of the settlement process in the resolution of asbestos claims, the 
Corporation shall exempt from disclosure under section 552(b)(3) of 
title 5, United States Code, with respect to information or documents 
that contain the results of settlements or settlement averages, 
individual party or attorney names, medical records, and related data 
collected for the purpose of resolving individual claims.
    (d) Exemptions.--The Corporation shall be exempt from the 
requirements of the following provisions of law:
            (1) Sections 504 and 552b of title 5, United States Code.
            (2) Chapter 51 of title 5, United States Code.
            (3) Chapter 53 of title 5, United States Code.
            (4) The Ethics in Government Act (5 U.S.C. App.).
            (5) Sections 2412 and 2672 of title 28, United States Code.
            (6) Title III of the Federal Property and Administrative 
        Services Act of 1949 (41 U.S.C. 251 et seq.).
            (7) Chapter 35 of title 44, United States Code.

SEC. 802. OBLIGATIONS OF THE CORPORATION NOT OBLIGATIONS OF THE UNITED 
              STATES.

    Obligations or liabilities of the Corporation shall not be 
obligations or liabilities of the United States. No action may be 
maintained against the United States to enforce any obligation or 
liability of the Corporation.

SEC. 803. APPLICATION TO EXISTING ASBESTOS TRUSTS.

    (a) In General.--This Act shall not apply to any asbestos trust in 
existence as of the date of enactment of this Act, except as provided 
in subsection (b).
    (b) Election.--An asbestos trust may elect to be subject to the Act 
by providing written notice of such election to the Corporation, in 
which case the trust will have the same rights and responsibilities 
under the Act as any person who is not a trust. A valid election under 
this subsection shall be irrevocable.

SEC. 804. SEVERABILITY.

    If any provision of this Act or the application of such provision 
to any person or circumstance is held invalid, it is the intent of 
Congress that the remainder of this Act and application of such 
provision to other persons or circumstances shall not be affected 
thereby.
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