[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1283 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 1283

   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 HOUSE OF REPRESENTATIVES

                             March 25, 1999

Mr. Hyde (for himself, Mr. Moran of Virginia, Mr. Armey, Mr. DeLay, Mr. 
  Sensenbrenner, Mr. Gekas, Mr. Burton of Indiana, Mr. Manzullo, Mr. 
Stenholm, Mr. Hostettler, Mr. Bonilla, Mr. Norwood, Mr. Foley, Mr. Deal 
 of Georgia, Mr. Calvert, Mr. Brady of Texas, Mr. Weller, Mr. Cannon, 
  and Mr. Watts of Oklahoma) introduced the following bill; which was 
               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 1999''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
                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--non-malignant 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. Grace period.
Sec. 305. Mediation.
Sec. 306. Arbitration.
Sec. 307. 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 ARBITRATION 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.
            TITLE VII--APPLICABILITY; PENDING CIVIL ACTIONS

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

Sec. 801. Definitions.
Sec. 802. Applicability of other federal laws.
Sec. 803. Obligations of the corporation not obligations of the United 
                            States.
Sec. 804. Application to existing asbestos trusts.
Sec. 805. Applicability to certain settlements.
Sec. 806. Severability.

SEC. 2. FINDINGS.

    The Congress finds that:
            (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 state and federal 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 
        retired 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 non-malignant 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 U.S. 
        Judicial Conference's Ad Hoc Committee on Asbestos Litigation, 
        the volume and complexity of asbestos cases have resulted in 
        the violation of a basic tenet of American justice: 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% of the total cost of asbestos litigation actually 
        goes to compensate claimants, while the reminder 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 
        defendant 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.

                TITLE I--ASBESTOS RESOLUTION CORPORATION

SEC. 101. ESTABLISHMENT.

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

SEC. 102. POWERS OF THE CORPORATION.

    (a) The Corporation shall have all of the powers granted to non-
profit corporations under the District of Columbia Nonprofit 
Corporation Act, D.C. Code Sec. Sec. 29-501 et seq.
    (b) In addition to the powers granted under subsection (a) 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 one 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) to sue and be sued in its corporate name.

SEC. 103. BOARD OF DIRECTORS.

    (a) Membership.--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. The President shall 
designate the chairman of the Board. No more than 4 directors may be 
members of the same political party. Directors shall be distinguished 
private citizens of the United States. 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.--Each director shall be appointed for a term of 6 years 
from the expiration of his predecessor's term, except that, of the 
directors first appointed--
            (1) three shall be appointed for a term of 3 years,
            (2) three shall be appointed for a term of 6 years, and
            (3) the chairman shall be appointed for a term of 6 years.
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 
member's predecessor 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.
    (d) Compensation; Expenses.--
            (1) The compensation of directors other than the chairman 
        shall not exceed $50,000 per year, and the compensation of the 
        chairman shall not exceed $75,000 per year.
            (2) Directors may be reimbursed for 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 ``other 
        cancer'' eligible medical category if it finds, upon the 
        recommendation of the Medical Advisory Board 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 by-laws.
    (i) Transition.--The Board may take any action authorized by law as 
soon as three directors have been confirmed by the Senate. If these 
initial directors do not include the designated chairman, they shall 
elect a temporary chairman who shall serve until the designated 
chairman is confirmed.

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) The Board shall appoint a Medical Advisory Board to provide 
advice on medical matters, including retention, supervision, and 
removal of physicians; establishment of guidelines regarding 
exceptional medical claims; the appropriateness of adding new diseases 
to the ``other cancer'' eligible medical category; and such other 
medical matters as may be referred to the Medical Advisory Board by the 
Board.
    (b) The Medical Advisory Board shall not have fewer than 5 or more 
than 9 members. 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 one 
Board-certified pulmonary specialist, Board-certified radiologist, 
Board-certified oncologist, and Board-certified pathologist. 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 appointment and removal 
of members, terms of office, filling of vacancies, notice and conduct 
of meetings (including quorum requirements) and compensation.
    (c) 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.

    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. 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 
Committee on the Judiciary of the House of Representatives and the 
Committee on the Judiciary of the Senate with respect to its 
operations, activities, and financial condition on or before December 
31 of each year.

              TITLE II--MEDICAL ELIGIBILITY DETERMINATIONS

SEC. 201. MEDICAL CRITERIA--NON-MALIGNANT CONDITIONS.

    In order to meet the requirements for the non-malignant conditions 
eligible medical category, a claimant must submit medical information 
and/or testimonial information sufficient to demonstrate a latency 
period of at least 12 years, and (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 must submit--
            (1) a diagnosis of malignant mesothelioma with a primary 
        site in the pleura or peritoneum, which is derived from 
        appropriate tissue, and verified using standardized and 
        accepted criteria of microscopic morphology and/or a variety of 
        appropriate staining techniques; and which is made by either 
        (1) two Board-certified pathologists, or (2) one Board-
        certified pathologist who is, at the time that the diagnosis is 
        verified, a member of the U.S.-Canadian Mesothelioma Reference 
        Panel; and
            (2) medical information and/or testimonial information 
        sufficient to demonstrate a latency period of at least ten (10) 
        years.

SEC. 203. MEDICAL CRITERIA--LUNG CANCER.

    In order to meet the requirements for the lung cancer eligible 
medical category, a claimant must submit (a) a diagnosis by a Board-
certified pathologist, Board-certified pulmonary specialist, or Board-
certified oncologist of primary lung carcinoma; (b) medical information 
and/or testimonial information sufficient to demonstrate a latency 
period of at least twelve (12) years; and (c) either--
            (1) evidence of non-malignant condition sufficient to meet 
        the requirements of section 201; or
            (2) chest x-rays which, 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 subparagraphs (A)-(D)--
                    (A) 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 one year;
                    (B) Each year that an exposed persons' 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;
                    (C) 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.
                    (D) For purposes of calculating years of exposure 
                under this paragraph, each year of exposure prior to 
                1976 shall be counted fully; each year of exposure from 
                1976 through 1979 shall be counted one-half; and 
                exposures after 1979 shall not be counted, except 
                that--
                            (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 his or her occupation 
                        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, then that year 
                        shall count one-half for purposes of 
                        calculating the years of exposure for purposes 
                        of this paragraph:
                            (ii) For each year from 1976 through 1979 
                        for which a claimant demonstrates, by a 
                        preponderance of the evidence, that the exposed 
                        persons' exposure to asbestos in his or her 
                        occupation 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, then that 
                        year shall count fully for purposes of 
                        calculating the years of exposure for purpose 
                        of this paragraph; and
                            (iii) For every year after 1979 for which a 
                        claimant demonstrates, by a preponderance of 
                        the evidence, that the exposed person's 
                        exposure to asbestos in his or her occupation 
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, then that year shall count one-half for purposes 
of calculating years of exposure for purposes of this paragraph.

SEC. 204. MEDICAL CRITERIA--OTHER CANCER.

    In order to meet the requirements in the other cancer medical 
eligible category, a claimant must submit (a) 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; 
(b) medical and/or testimonial information sufficient to demonstrate a 
latency period of at least 12 months; and (c) evidence of a non-
malignant condition sufficient to meet the requirements of section 201.

SEC. 205. PROCEDURE FOR CERTIFICATE OF ELIGIBILITY.

    (a) Application.--This 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, 
including:
            (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 work sites or other such locations 
        where such exposures occurred.
            (3) Medical information.--The eligible medical category or 
        categories for which the claimant is applying; all medical 
        diagnoses, reports and records that relate to any claimed 
        asbestos-related condition; materials supporting those 
        diagnoses, reports and records that may be required by the 
        Corporation, but in any event including all the back-up 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); 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 
        last five years. 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.--The Corporation shall notify the 
claimant within 30 days following receipt of the application either 
that the application is accepted for processing or that the application 
is materially incomplete and cannot be processed until additional 
information is provided. Any notice that an application is materially 
incomplete shall describe the missing information. 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 it seeks such 
additional records, it shall give notice to the claimant, and shall 
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 it cannot determine, on the basis of the available 
medical information, whether an exposed person meets the medical 
criteria for one 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 non-invasive 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 
under oath, or by sworn affidavit, or by written declaration subscribed 
to as true under penalty of perjury.
    (f) Determination of Medical Eligibility.--As soon as practicable 
and, in any event, no later than 60 days after issuance of a notice of 
acceptance, the Corporation shall issue either a certificate of medical 
eligibility stating each eligible medical category for which the 
claimant qualifies or a finding of noneligibility. The Corporation may 
extend the time if necessary to secure additional information that is 
essential to the determination of medical eligibility. 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) 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 from 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) The Corporation shall refer a request for 
        reconsideration to a panel of two 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) 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, it will render a decision. If the panel is not 
        in agreement, the Corporation will 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) 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. 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) The Corporation shall act upon a request for 
        reconsideration as soon as practicable but in any event within 
        30 days: Provided, That the Corporation may extend the time if 
        necessary to secure additional information that is essential to 
        the disposition of the request for reconsideration.
    (h) Reapplication.--A claimant may file a new application under 
this title at any time. Any such new application filed within one year 
following 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.--The Corporation shall 
establish one or more exceptional medical claims panels. Each 
exceptional medical claims panel shall be comprised of five physicians, 
including two Board-certified pulmonary specialists, a Board-certified 
radiologist (who is either a certified B-reader or a specialist in 
computed tomography), and two Board-certified pathologists. Each 
exceptional medical claims panel shall determine whether claims 
referred to it meet the requirements of this section for designation as 
exceptional medical claims.
    (b) Time To Apply.--A claimant may apply to the Corporation for 
designation of his claim as an exceptional medical claim if the 
claimant--
            (1) concedes (either before or after a determination is 
        made under section 205(f)) that the claim does not meet the 
        medical criteria in sections 201-204; or
            (2) 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 201-204, wholly or in 
        part.
However, the Corporation shall not accept any application for 
designation as an exceptional medical claim if a claimant has filed an 
action under section 208 for review of the Corporation's determination 
on reconsideration or has commenced alternative dispute resolution 
procedures under title III.
    (c) Contents of Application.--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 
by the report of a Board-certified internist, Board-certified pulmonary 
specialist, Board-certified pathologist, or Board-certified oncologist, 
as appropriate for the eligible medical category claimed. The 
physician's report shall contain a complete review of the exposed 
person's medical history and current condition, such additional 
material by way of analysis and documentation as shall be prescribed by 
the Corporation, and 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 his or her control 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 non-invasive testing or 
examination of the exposed person (including computed tomography (CT) 
scanning). Tests ordered by an exceptional medical claims panel shall 
be 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 5 U.S.C. 
Sec. 552a with respect to information that it receives regarding a 
claimant or exposed person. The production of this information to 
respondents in accordance with section 303(c) shall be deemed a routine 
use of the information within the meaning of 5 U.S.C. Sec. 552a(a)(7).

SEC. 208. JUDICIAL REVIEW.

    (a) 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 by 
the Corporation that a claimant fails to meet the medical criteria, 
wholly or in part, or that his claim does not qualify as an exceptional 
medical claim. An adverse determination regarding medical eligibility 
shall not be subject to review until the claimant has exhausted 
administrative remedies before the Corporation by obtaining a final 
determination under section 205(g) or section 206(f).
    (b) An action for review under this section shall be commenced 
within 60 days after the determination on reconsideration as to which 
review is sought or the decision that the claimant does not qualify as 
an exceptional medical claim, whichever is later. However, no action 
for review under this section may be commenced while an application for 
designation as an exceptional medical claim is pending.
    (c) The court shall uphold the determination of the Corporation if 
it 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) In applying the standard set forth in subsection (c), the 
record shall consist of the information submitted to the Corporation or 
the exceptional medical claims panel by the claimant, records and other 
information obtained by the Corporation or exceptional medical claims 
panel relating to the claim, and 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) 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 way 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 pre-hearing 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 Corporation's rules and orders.
    (b) Parties shall have the right to be represented by counsel at 
all phases of the alternative dispute resolution process.
    (c) By presenting to the Corporation any statement, motion, or 
other paper, counsel and the party represented by that counsel warrant 
that to the best of their knowledge, information, and belief, formed 
after reasonable inquiry--
            (1) it is not being presented for any improper purpose;
            (2) the claims, defenses, or other legal contentions 
        therein are warranted by existing law or by a nonfrivolous 
        argument for the extension, modification, or reversal of 
        existing law or 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) 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.

    Upon issuance of a certificate of eligibility, the Corporation 
shall assign a motions officer to the claim. 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. 
Without limitation, the motions officer may--
            (1) determine whether notice shall be provided to any 
        respondent under section 303,
            (2) issue subpoenas to parties and non-parties for 
        testimony and documents, in accordance with the terms of 
        section 307,
            (3) enter scheduling orders and other orders to control the 
        progress of the proceedings,
            (4) resolve discovery disputes, and
            (5) exercise any other authority conferred by procedural 
        rules, policies, or procedures established by the Corporation.

SEC. 303. NOTICE TO RESPONDENTS.

    (a) 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. This particularized statement shall 
include as applicable the dates of exposure for each relevant time 
period; the worksite or other place of exposure; the nature and 
frequency of the exposure; 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; the asbestos-containing product(s) 
or material(s) to which the claimant was exposed at each place of 
exposure; and any other information that the Corporation may require by 
rule or otherwise in all or in particular classes of cases.
    (b) The Corporation will promptly notify each person identified by 
the claimant pursuant to subsection (a) of this section, and for whom a 
complete and adequate particularized statement has been submitted, that 
it has been named as a respondent. The Corporation will at the same 
time provide to each respondent a copy of all particularized statements 
submitted to the Corporation under subsection (a).
    (c) 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 Corporation relating to the claim and the results of any medical 
tests administered at the Corporation's direction. However, the 
Corporation shall not provide the information described in this 
subsection to the respondent until it has received a protective order, 
signed by or on behalf of the respondent, in a form prescribed by the 
Corporation, that will preserve the confidentiality of medical, 
employment, and other information that the Corporation reasonably 
designates as confidential.
    (d) 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). The motions officer may grant 
reasonable extensions of time for naming respondents in order to allow 
for the completion of discovery under this subsection.
    (e) New respondents may be added in mediation after the time 
prescribed by the Corporation for adding respondents (including any 
extensions) only upon motion by a claimant for good cause. Among the 
factors that the Corporation may consider in determining whether good 
cause exists are the following: (1) the prejudice to the claimant if 
the new respondent is not added, (2) the reason why the new respondent 
was not named in a timely way, (3) whether the claimant sought to name 
the new respondent as soon as he was aware of the omission, (4) the 
extent to which late addition of a new respondent would be disruptive, 
and (5) other relevant factors.

SEC. 304. GRACE PERIOD.

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

SEC. 305. MEDIATION.

    (a) Appointment of Mediator.--Upon expiration of the grace period, 
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.--Within 
such time after appointment of a mediator as the Corporation shall 
prescribe, each party shall serve upon all other non-settling parties a 
statement of information required for settlement. The information to be 
included in such statements shall be determined by the Corporation to 
be reasonably necessary for the parties to evaluate the claim. 
Information previously provided by any party may be incorporated by 
reference and need not be resubmitted. Nothing in this subsection shall 
be construed to require the disclosure of any information privileged 
under applicable law.
    (c) Time Limits.--Mediation shall be completed within 60 days 
following the appointment of the mediator. The time period may be 
extended by the mediator if the claimant has failed to provide the 
information required under subsection (b), if such extension is 
necessary to allow for simultaneous mediation of a group of claims, or 
for other good cause. The time period may also be extended 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, 
given 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.--Fifteen days prior to the close 
of the mediation period, claimant shall provide to each non-settling 
respondent or jointly-represented group of respondents a final good 
faith demand of settlement. Five days later each respondent or jointly-
represented group of respondents shall make a final good faith offer in 
reply. If a respondent or jointly-represented group of respondents 
fails to make a settlement offer under this section, it shall be deemed 
to have made a settlement offer of zero dollars. During the remaining 
10-day period, or any extension thereof, the mediator shall work with 
the parties in a further effort to settle the claim.
    (f) Release From Mediation.--At the close of the mediation period, 
the mediator shall issue to the claimant a release from mediation with 
respect to all respondents that participated in mediation. After the 
issuance of a release from mediation, the claimant may elect 
arbitration under section 306 or commence a civil action against those 
respondents.

SEC. 306. 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. The Corporation shall adopt rules of procedure under 
section 301 governing the assertion of third-party claims against any 
person, whether or not that person has previously been named as a 
respondent. Except as otherwise provided in this section, parties in 
arbitration against which third-party claims have been asserted shall 
be deemed respondents.
    (b) Federal Arbitration Act.--All arbitrations hereunder shall be 
subject to the Federal Arbitration Act, 9 U.S.C. Sec. Sec. 1-6, 8-16, 
except that, the provisions of this Act and rules adopted by the 
Corporation under this Act shall be effective notwithstanding any 
inconsistent provision of the Federal Arbitration Act.
    (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 one or more of the 
respondents. The terms of such a special agreement will prevail, as to 
the parties thereto, 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. Those rules shall establish a 
procedure for early dismissal of, or summary judgment in favor of, any 
party named as a third-party respondent, and no party that obtains such 
early dismissal summary judgment shall be considered a respondent for 
purposes of section 601.
    (e) Subpoena Powers of Arbitrators.--Arbitrators may issue 
subpoenas to parties and non-parties for testimony and documents in 
accordance with the terms of section 307.
    (f) Law To Be Applied.--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. However, if a respondent demonstrates to the 
satisfaction of the 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 
which 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 
abased 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 
extend provided by applicable state law:
            (1) Where 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. 
        The arbitrator shall, in addition, determine the amount 
        allocable to each such respondent based on principles of 
        comparative fault or responsibility. 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; but the award against the remaining 
        respondents shall be reduced by the consideration paid or the 
        amount stated in the release, whichever is greater. The total 
        award, reduced by the aggregate of such reductions for all 
        respondents receiving a release, shall then be allocated among 
        the remaining respondents according to the arbitrator's 
        allocation of comparative shares of fault or responsibility.
            (2) Where joint and several liability has been abolished 
        under applicable stat law, the arbitrator shall determine in 
        accordance with that law the several share of liability of each 
        respondent that has not been released or dismissed from the 
        proceeding.
            (3) Where 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 
        state law the several share of liability of each respondent 
        that has not been released or dismissed from the proceeding, 
and shall in addition determine in accordance with state law the total 
joint and several liability of all such respondents. Allocation of the 
joint and several portion of the ward among the respondents, and 
reduction of the total award on account of settlements, shall be as set 
forth in paragraph (h)(1), except that only the joint and several 
portion of an award may be reduced by amounts paid in settlement by 
released persons and only the 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.--The entry 
of an arbitration award against any respondent 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. A settlement 
between a respondent and the claimant 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.--If the final offer 
made by any respondent or jointly-represented group of respondents 
under section 305(e) is more than 25 percent less than the share of the 
total liability (exclusive of prejudgment interest, if any) awarded in 
arbitration against that respondent or against all the members of a 
jointly-represented group of respondents, the arbitrator shall add a 
10% penalty to the award against such respondent or each member of such 
group of respondents. This penalty shall not be taken into 
consideration in determining the maximum allowable attorneys' fees 
under section 503.
    (k) Consolidations.--Claims with respect to multiple exposed 
persons shall not be joined or consolidated for hearing on the merits 
without the consent of all parties.

SEC. 307. SUBPOENA POWERS OF MOTIONS OFFICERS AND ARBITRATORS.

    A motions officer or an arbitrator may summon in writing any person 
to attend before him as a witness, or to appear for a deposition, and 
in a proper case to bring with him any book, record, document, or paper 
which may be deemed material as evidence in the case. The fees for such 
attendance shall be the same as the fees of witnesses before masters of 
the United States courts. A summons under this section shall issue in 
the name of the motions officer or arbitrator, shall be signed by the 
motions officer or arbitrator, shall be directed to the person 
summoned, and shall be served in accordance with Rule 45(b)(1) of the 
Federal Rules of Civil Procedure. If any person so summoned to testify 
or produce documents shall refuse or neglect to obey said summons, upon 
petition the United States District Court for the District of Columbia 
or for the district in which the testimony is to be taken or the 
document production is to take place may compel the attendance of such 
person before the motions officer or arbitrator, or his appearance for 
a deposition, or the production of documents, or may punish said person 
for contempt in the same manner provided by law for securing the 
attendance of witnesses or their punishment for neglect or refusal to 
attend in the courts of the United States.

                        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.

    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. Any defendant in a civil action 
that involves a violation of this subsection may remove such action to 
an appropriate Federal district court. 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.

    If the final offer made by any respondent or jointly-represented 
group of respondents under section 305(e) is more than 25 percent less 
than the several share of liability (exclusive of prejudgment interest, 
if any) assigned by the jury or other fact-finder to that respondent or 
to all the members of a jointly represented group of respondents, the 
court shall award a 10% penalty as to each such respondent or member of 
a jointly-represented group of respondents. This penalty shall not be 
taken into consideration in determining the 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 such 
        person establishes, by evidence meeting the requirements of 
        sections 201, 202, 203, 204, or 206, as appropriate, the 
        existence of an eligible medical condition.
            (2) 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.
            (3) 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.
            (4) 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 such claim was untimely as of the date of 
enactment of this Act.

SEC. 503. ATTORNEYS' FEES.

    Notwithstanding any provision of other law or contract, the 
aggregate fee, including all expenses and other charges of a claimant's 
attorneys in any civil action or proceeding before the Corporation 
involving an asbestos claim (whether or not such attorney formally 
appears in such civil action or proceeding) shall not exceed twenty-
five percent of the damages or other payments received by that 
claimant, in settlement or pursuant to a judgment or award, from or on 
behalf of all respondents before the Corporation and all defendants in 
the civil action. This limitation does not apply to any settlement 
between a claimant and any other person regarding an asbestos claim 
reached prior to the mediation period and where no civil action has 
been commenced in any court.

SEC. 504. EFFECTIVE ON SUBSEQUENT ACTIONS.

    (a) Notwithstanding any other provision of law, a judgment or 
settlement of an asbestos claim for a non-malignant 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 sections 202, 203, 
204, or 206, as applicable.
    (b) 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.--On or before August 1 of each year, 
        the Corporation shall estimate its costs (exclusive of the cost 
        of mediation and arbitration that may be recovered under 
        section 602) for the following fiscal year beginning October 1. 
        In estimating its costs under this section, the Corporation 
        shall make reasonable allowances for contingencies and shall 
        state separately those costs directly related to medical review 
        and those costs directly related to general overhead and 
        overhead and administration of the Corporation.
            (2) Allocation to Respondents.--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 such 
        allocation. In this section, a person shall be considered named 
        as a respondent if notice was provided to such person under 
        section 303. In making this allocation, the Corporation shall 
        calculate the following: (i) for each individual respondent, 
        the total number of proceedings in which the respondent has 
        been named, and (ii) the total combined number of proceedings 
        for all respondents. For purposes of this calculation, all 
        claims, including derivative claims, relating to one exposed 
        person shall be counted as one proceeding for each respondent 
        named in the proceeding. 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. 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(s) 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 its allocated share of the 
        estimated costs within 30 days after the date of notification 
        of its allocated share.
    (b) Final Allocation.--On or before November 30 of each year, the 
Corporation shall determine its total costs (exclusive of the cost of 
mediation and arbitration that may be recovered from respondents under 
section 602) for the prior fiscal year ending September 30 and will 
allocate those costs proportionally, in the manner described in 
subsection (a)(2), among persons who were named as respondents in that 
fiscal year. In making an allocation under this subsection, the 
Corporation shall state separately those costs directly attributable to 
the medical review process and those costs directly attributable to 
general overhead and administration of the Corporation. 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 within 30 days after receiving a notice of deficiency from 
the Corporation. 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) Start-up funding.--Start-up funding will be provided by 
        voluntary contributions within 30 days after appointment and 
        confirmation of the first director. Unless the Corporation and 
        the donor otherwise agree, the Corporation will refund such 
        contributions following receipt of the funds allocated pursuant 
        to the initial determination of costs and assessments to 
        defendants provided in subsection (c)(2). Start-up costs 
        include all reasonable and necessary expenses of the 
        Corporation incurred prior to the availability of transitional 
        funding under subsection (c)(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. Such notice shall be the best 
                practicable 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 in any event not 
                less than 60 days after the date of publication in the 
                Federal Register, every person who was, on the date of 
                enactment, served as a defendant in at least 5000 
                pending civil actions involving asbestos claims shall 
                provide to the Corporation a statement containing the 
                following information: the total number of civil 
                actions in which that person was named as a defendant 
and, with respect to each civil action, the name of the lead plaintiff, 
the name of the lead defendant, the court in which the civil action was 
pending, and 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 one civil action 
                        regardless of the number of plaintiffs or 
                        defendants names 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.--The Corporation shall 
                proportionally allocate its estimated costs for 
                transitional period to include the first two fiscal 
                years after the date of enactment, in substantially the 
                same manner as the allocation described in subsection 
                (a)(2), to the defendants identified in this paragraph 
                and shall notify each such defendant of its 
                proportionate share of such estimated transitional 
                costs. Within 45 days following the date of such 
                notice, each such defendant shall pay its share of the 
                estimated transitional costs to the Corporation.
            (3) Reconciliation.--On or before November 30 following the 
        end of the transitional period, the Corporation shall determine 
        its total costs (exclusive of the cost of mediation an 
        arbitration that may be recovered from respondents under 
        section 602) for the transitional period, including start-up 
        costs, and shall 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. In making an 
        allocation under this subsection, the Corporation shall state 
        separately those costs directly attributable to the medical 
        review process and those costs directly attributable to general 
        overhead and administration of the Corporation. 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. 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 promptly 
refunded.

SEC. 602. COST OF MEDIATION AND ARBITRATION.

    (a) The cost of mediation shall be charged, on a per capita basis, 
to each respondent who participated in mediation, wholly or in part.
    (b) 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) 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) 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) 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. The reviewing court shall 
uphold a challenged assessment unless it determines that that 
assessment is arbitrary and capricious or otherwise not in accordance 
with law. No action under this subsection may be commenced or 
maintained by any person unless that person has first (1) exhausted the 
informal dispute resolution procedures provided under section 603 and 
(2) paid to the Corporation the entire amount assessed to that person 
by the Corporation, including the amount in dispute.
    (b) The Corporation shall have the authority to bring an action in 
the district courts of the United States to enforce any obligation 
imposed on any person by this title, and the district courts of the 
United States shall have exclusive jurisdiction of such actions without 
regard to the amount in controversy or citizenship of the parties. 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, in which case 
the court shall uphold the Corporation's determination if it is not 
arbitrary and capricious or otherwise contrary to law. In any action 
under this subsection in which the Corporation prevails, it 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 26 U.S.C. Sec. 6621.

SEC. 605. PENALTIES.

    If any person required by section 601 to provide information to the 
Corporation willfully fails to do so within the time fixed by the 
Corporation, the person shall forfeit to the Corporation the sum of 
$50,000, which 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).

            TITLE VII--APPLICABILITY; PENDING CIVIL ACTIONS

SEC. 701. APPLICABILITY.

    Subject to section 702, upon the date of enactment the Act shall 
apply to any civil action asserting an asbestos claim that has not 
resulted in a final, non-appealable judgment.

SEC. 702. PENDING CIVIL ACTIONS.

    (a) A certificate of medical eligibility shall not be required in 
any civil action asserting an asbestos claim if (1) that action was 
pending upon the date of enactment and (2) a trial commences prior to 
the operational date. No release from mediation shall be required in 
any civil action asserting an asbestos claim if that action was pending 
on the date of enactment, whether or not trial commences prior to the 
operational date.
    (b) 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) 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-
204.

                  TITLE VIII--MISCELLANEOUS PROVISIONS

SEC. 801. 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, and 
        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 Sec. Sec. 29-501 et seq.)
            (13) Cancer.--The term ``cancer'' means any of 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 one 
        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 42 C.F.R. Sec. 37.51(b) (1997) (and any subsequent 
        revisions thereof) whose certification is current.
            (16) Chest x-rays.--The term ``chest x-rays'' means chest 
        radiographs taken in four 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 state, federal, or tribal 
        court, but does not include (a) criminal action, (b) an action 
        relating to state or federal workers' 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 his legal representative, and any parent, child, or 
        other relative of an exposed person, or their legal 
        representatives, who asserts an asbestos claim.
            (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% of predicted value with 
                        FEV<INF>1</INF>/FVC <gr-thn-eq> 75% (actual 
                        value); or
                            (ii) TLC < 80% of predicted value, with 
                        either DLCO <ls-thn-eq> 76% 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 Grad 1/1 or greater; and pulmonary function testing 
                that show either:
                            (i) FVC < 80% of predicted value with 
                        FEV<INF>1</INF>/FVC <gr-thn-eq> 72% (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% (actual 
                        value); or
                            (ii) TLC < 80% of predicted value.
            (20) Compensatory damages.--The term ``compensatory 
        damages'' means damages awarded for economic and non-economic 
        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 non-malignant 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 Grad B2, and which includes blunting of at least 
                one 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% of 
                        predicted value; or
                            (ii) If TLC is not available, VC or FVC < 
                        75% of predicted value with FEV<INF>1</INF>/FVC 
                        <gr-thn-eq> 75% (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 one costophrenic angle and is not 
                explained by any other condition in the subject's 
                history; and pulmonary function testing that shows--
                            (i) FVC < 180% of predicted value with 
                        FEV<INF>1</INF>/FVC <gr-thn-eq> 75% (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% 
                        (actual value); or
                            (ii) TLC < 80% 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 one 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 or 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 304.
            (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-ray 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) Non-economic loss.--The term ``non-economic 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) Occupational history.--The term ``occupational 
        history'' means a listing of all employment positions, 
        providing for each the dates and place of employment, the 
        employer, and a description of job responsibilities and 
        activities.
            (43) Operational date.--The term ``operational date'' means 
        the earlier of (i) the date on which the Board certifies that 
        the Corporation is operational, or (ii) the first business day 
        following the seventh month after the date on which the Board 
        is authorized under section 103(i) to take any action 
        authorized by law.
            (44) 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 one 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.
            (45) 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 804.
            (46) Physician.--The term ``physician'' means a medical 
        doctor currently licensed to practice medicine in any state who 
        has not, within the five-year period prior to the date of 
        enactment of the Act, spent more than one half of his or her 
        professional time, or derived more than one-half of his or her 
        professional income, either annually or in total, either 
        reviewing or testifying in any forum on medical-legal issues 
        related to asbestos.
            (47) 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.
            (48) 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 reliability where obstructive lung disease may be 
present. All back-up 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.
            (49) 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.
            (50) 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 who is added to an arbitration proceeding under 
        section 306(a). The terms 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 804.
            (51) 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 20 C.F.R. Sec. 718.103(1997) 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 bronchodilaters, with best values taken. All 
        back-up 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.
            (52) 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.
            (53) TLC.--The term ``TLC'' means total lung capacity, 
        which is the volume of air in the lung after maximal 
        inspiration.
            (54) 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. Sec. Sec. 901-944, 948-950), but 
        does not include the Federal Employers' Liability Act, (45 
        U.S.C. Sec. 51-60).

SEC. 802. APPLICABILITY OF OTHER FEDERAL LAWS.

    (a) Nothing in this Act shall be construed to make any director, 
officer or employee of the Corporation, an officer or employee of the 
U.S. 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 the provisions of 31 U.S.C. 
Sec. 1341(a).
    (b) To the extent consistent with the provisions of this Act, the 
Corporation shall be subject to 5 U.S.C. Sec. Sec. 553, 555, and 706 
and 5 U.S.C. Sec.  552a.
    (c) In order to preserve the integrity of the settlement process in 
the resolution of asbestos claims, the Corporation shall exempt 
from disclosure under 5 U.S.C. Sec. 552(b)(3) information or documents 
that contain the results of settlements or settlement averages, 
individual party or attorney names, medical records, and relating data 
collected for the purpose of resolving individual claims.
    (d) The Corporation shall be exempt from: 5 U.S.C. Sec. 552b, 5 
U.S.C. Sec. Sec. 5101-5115, 5331-5338, 5 U.S.C. Sec. 504, 5 U.S.C. App. 
(Ethics in Government Act), 28 U.S.C. Sec. 2412, 28 U.S.C. Sec. 2672, 
41 U.S.C. Sec. Sec. 251-260 and 44 U.S.C. Sec. 3501 et seq.

SEC. 803. 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. 804. APPLICATION TO EXISTING ASBESTOS TRUSTS.

    (a) 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) 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. 805. APPLICATION TO CERTAIN SETTLEMENTS.

    This Act shall not apply to any settlement agreement or related 
agreement concerning asbestos claims entered into by claimants, 
defendants, or their counsel.

SEC. 806. 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.
                                 <all>