[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1125 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                S. 1125

To create a fair and efficient system to resolve claims of victims for 
   bodily injury caused by asbestos exposure, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 22, 2003

Mr. Hatch (for himself, Mr. Nelson of Nebraska, Mr. DeWine, Mr. Miller, 
 Mr. Voinovich, Mr. Allen, and Mr. Chambliss) introduced the following 
    bill; which was read twice and referred to the Committee on the 
                               Judiciary

_______________________________________________________________________

                                 A BILL


 
To create a fair and efficient system to resolve claims of victims for 
   bodily injury caused by 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 Injury Resolution Act of 2003'' or the ``FAIR Act of 2003''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

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

           Subtitle A--United States Court of Asbestos Claims

Sec. 101. Establishment of Asbestos Court.
        Subtitle B--Asbestos Injury Claims Resolution Procedures

Sec. 111. Filing of claims.
Sec. 112. General rule concerning no-fault compensation.
Sec. 113. Essential elements of eligible asbestos claim.
Sec. 114. Eligibility determinations and claim awards.
Sec. 115. Medical evidence auditing procedures.
Sec. 116. Claimant assistance program.
                      Subtitle C--Medical Criteria

Sec. 121. Essential elements of eligible asbestos claim.
Sec. 122. Diagnostic criteria requirements.
Sec. 123. Latency criteria requirements.
Sec. 124. Medical criteria requirements.
Sec. 125. Exposure criteria requirements.
                           Subtitle D--Awards

Sec. 131. Amount.
Sec. 132. Medical monitoring.
Sec. 133. Payments.
Sec. 134. Reduction in benefit payments for collateral sources.
                       Subtitle E--En Banc Review

Sec. 141. En banc review.
            TITLE II--ASBESTOS INJURY CLAIMS RESOLUTION FUND

           Subtitle A--Asbestos Defendants Funding Allocation

Sec. 201. Definitions.
Sec. 202. Authority and tiers.
Sec. 203. Subtier assessments.
Sec. 204. Assessment administration.
                Subtitle B--Asbestos Insurers Commission

Sec. 211. Establishment of Asbestos Insurers Commission.
Sec. 212. Duties of Asbestos Insurers Commission.
Sec. 213. Powers of Asbestos Insurers Commission.
Sec. 214. Personnel matters.
Sec. 215. Nonapplication of FOIA and confidentiality of information.
Sec. 216. Termination of Asbestos Insurers Commission.
Sec. 217. Authorization of appropriations.
        Subtitle C--Office of Asbestos Injury Claims Resolution

Sec. 221. Establishment of the Office of Asbestos Injury Claims 
                            Resolution.
Sec. 222. Powers of the Administrator and management of the Fund.
Sec. 223. Asbestos Injury Claims Resolution Fund.
Sec. 224. Enforcement of contributions.
Sec. 225. Additional contributing participants.
                       TITLE III--JUDICIAL REVIEW

Sec. 301. Judicial review of decisions of the Asbestos Court.
Sec. 302. Judicial review of final determinations of the Administrator 
                            and of the Asbestos Insurers Commission.
Sec. 303. Exclusive review.
Sec. 304. Private right of action against reinsurers.
                   TITLE IV--MISCELLANEOUS PROVISIONS

Sec. 401. False information.
Sec. 402. Effect on bankruptcy laws.
Sec. 403. Effect on other laws and existing claims.

SEC. 2. PURPOSE.

    The purpose of this Act is to create a privately funded, publicly 
administered fund to provide the necessary resources for an asbestos 
injury claims resolution program.

SEC. 3. DEFINITIONS.

    In this Act, the following definitions shall apply:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Office of Asbestos Injury Claims 
        Resolution appointed under section 221(c).
            (2) Asbestos.--The term ``asbestos'' includes--
                    (A) asbestos chrysotile;
                    (B) asbestos amosite;
                    (C) asbestos crocidolite;
                    (D) asbestos tremolite;
                    (E) asbestos winchite;
                    (F) asbestos richterite;
                    (G) asbestos anthophyllite;
                    (H) asbestos actinolite;
                    (I) any of the minerals listed under subparagraphs 
                (A) through (H) that has been chemically treated or 
                altered, and any asbestiform variety, type, or 
                component thereof; and
                    (J) asbestos-containing material, such as asbestos-
                containing products, automotive or industrial parts or 
                components, equipment, improvements to real property, 
                and any other material that contains asbestos in any 
                physical or chemical form.
            (3) Asbestos claim.--
                    (A) In general.--The term ``asbestos claim'' means 
                any personal injury claim for damages or other relief 
                presented in a civil action or bankruptcy proceeding, 
                arising out of, based on, or related to, in whole or 
                part, the health effects of exposure to asbestos, 
                including loss of consortium, wrongful death, and any 
                derivative claim made by, or on behalf of, any exposed 
                person or any representative, spouse, parent, child or 
                other relative of any exposed person.
                    (B) Exclusion.--The term does not include claims 
                for benefits under a workers' compensation law or 
                veterans' benefits program, or claims brought by any 
                person as a subrogee by virtue of the payment of 
                benefits under a workers' compensation law.
            (4) Asbestos claimant.--The term ``asbestos claimant'' 
        means an individual who files an asbestos claim under section 
        111.
            (5) Asbestos court; court.--The terms ``Asbestos Court'' or 
        ``Court'' means the United States Court of Asbestos Claims 
        established under section 101.
            (6) Civil action.--The term ``civil action'' means all 
        suits of a civil nature in State or Federal court, whether 
        cognizable as cases at law or in equity or in admiralty, but 
        does not include an action relating to any workers' 
        compensation law, or a proceeding for benefits under any 
        veterans' benefits program.
            (7) Collateral source.--The term ``collateral source''--
                    (A) means all collateral sources, including--
                            (i) disability insurance;
                            (ii) health insurance;
                            (iii) medicare;
                            (iv) medicaid;
                            (v) death benefit programs;
                            (vi) defendants;
                            (vii) insurers of defendants; and
                            (viii) compensation trusts; and
                    (B) shall not include life insurance.
            (8) Eligible disease or condition.--The term ``eligible 
        disease or condition'' means, to the extent that the illness 
        meets the medical criteria requirements established under 
        subtitle C of title I, asbestosis/pleural disease, severe 
        asbestosis disease, mesothelioma, lung cancer I, lung cancer 
        II, other cancers, and qualifying nonmalignant asbestos-related 
        diseases.
            (9) Fund.--The term ``Fund'' means the Asbestos Injury 
        Claims Resolution Fund established under section 223.
            (10) Law.--The term ``law'' includes all law, judicial or 
        administrative decisions, rules, regulations, or any other 
        principle or action having the effect of law.
            (11) Participant.--The term ``participant'' means any 
        person subject to the funding requirements of title II, 
        including--
                    (A) any defendant participant subject to an 
                assessment for contribution under subtitle A of that 
                title; and
                    (B) any insurer participant subject to an 
                assessment for contribution under subtitle B of that 
                title.
            (12) Person.--The term ``person''--
                    (A) means an individual, trust, firm, joint stock 
                company, partnership, association, insurance company, 
                reinsurance company, or corporation; and
                    (B) does not include the United States, any State 
                or local government, or subdivision thereof, including 
                school districts and any general or special function 
                governmental unit established under State law.
            (13) State.--The term ``State'' means any State of the 
        United States and also includes 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 entities under this paragraph.
            (14) Veterans' benefits program.--The term ``veterans' 
        benefits program'' means any program for benefits in connection 
        with military service administered by the Veterans' 
        Administration under title 38, United States Code.
            (15) Worker's compensation law.--The term ``worker's 
        compensation law''--
                    (A) 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;
                    (B) includes the Longshore and Harbor Workers' 
                Compensation Act (33 U.S.C. sections 901 et seq.) and 
                chapter 81 of title 5, United States Code; and
                    (C) does not include the Act of April 22, 1908 (45 
                U.S.C. 51 et seq.), commonly known as the Federal 
                Employers' Liability Act, or damages recovered by any 
                employee in a liability action against an employer.

                  TITLE I--ASBESTOS CLAIMS RESOLUTION

           Subtitle A--United States Court of Asbestos Claims

SEC. 101. ESTABLISHMENT OF ASBESTOS COURT.

    (a) In General.--Part I of title 28, United States Code, is amended 
by inserting after chapter 7 the following:

          ``CHAPTER 9--UNITED STATES COURT OF ASBESTOS CLAIMS

``Sec.
``201. Establishment of the United States Court of Asbestos Claims.
``202. Magistrates.
``203. Retirement of judges of the United States Court of Asbestos 
                            Claims.
``Sec. 201. Establishment of the United States Court of Asbestos Claims
    ``(a) Establishment and Appointment of Judges.--
            ``(1) In general.--The President shall appoint, by and with 
        the advice and consent of the Senate, 5 judges, who shall 
        constitute a court of record known as the United States Court 
        of Asbestos Claims.
            ``(2) Article i court.--The Court of Asbestos Claims is 
        declared to be a court established under article I of the 
        Constitution of the United States.
    ``(b) Term; Removal; Compensation.--
            ``(1) Term.--Each judge appointed under subsection (a) 
        shall serve for a term of 15 years, except that judges 
        initially appointed shall serve for staggered terms as the 
        President shall determine appropriate to assure continuity.
            ``(2) Removal.--Judges may be removed by the President only 
        for good cause.
            ``(3) Compensation.--Each judge shall receive a salary at 
        the rate of pay, and in the same manner, as judges of the 
        district courts of the United States.
    ``(c) Chief Judge.--
            ``(1) In general.--The President shall designate 1 of the 
        judges appointed under subsection (b)(1), who is less than 70 
        years of age, to serve as chief judge.
            ``(2) Term.--The chief judge may continue to serve as such 
        until--
                    ``(A) he or she reaches the age of 70 years;
                    ``(B) another judge is designated as chief judge by 
                the President; or
                    ``(C) the expiration of his or her term under 
                subsection (b)(1).
            ``(3) Continuity of service.--Upon the designation by the 
        President of another judge to serve as chief judge, the former 
        chief judge may continue to serve as a judge of the Court of 
Asbestos Claims for the balance of the term to which he or she was 
appointed.
            ``(4) Powers of chief judge.--The chief judge is authorized 
        to--
                    ``(A) prescribe rules and procedures for hearings 
                and appeals of the Court of Asbestos Claims and its 
                magistrates;
                    ``(B) appoint magistrates;
                    ``(C) appoint or contract for the services of such 
                personnel as may be necessary and appropriate to carry 
                out the responsibilities of the Court of Asbestos 
                Claims; and
                    ``(D) make such expenditures as may be necessary 
                and appropriate in the administration of the 
                responsibilities of the Court of Asbestos Claims and 
                the chief judge under this chapter and the Fairness in 
                Asbestos Injury Resolution Act of 2003.
    ``(d) Time and Places of Holding Court.--
            ``(1) In general.--The principal office of the Court of 
        Asbestos Claims shall be in the District of Columbia, but the 
        Court of Asbestos Claims may hold court at such times and in 
        such places as the chief judge may prescribe by rule.
            ``(2) Limitation.--The times and places of the sessions of 
        the Court of Asbestos Claims shall be prescribed with a view to 
        securing reasonable opportunity to citizens to appear before 
        the Court of Asbestos Claims.
    ``(e) Official Duty Station; Residence.--
            ``(1) Duty station.--The official duty station of each 
        judge of the Court of Asbestos Claims is the District of 
        Columbia.
            ``(2) Residence.--After appointment and while in active 
        service, each judge of the Court of Asbestos Claims shall 
        reside within 50 miles of the District of Columbia.
``Sec. 202. Magistrates
    ``(a) Appointment.--The chief judge shall appoint such magistrates 
as necessary to facilitate the expeditious processing of claims.
    ``(b) Compensation.--The compensation of magistrates shall be 
determined by the chief judge, but shall not exceed the annual rate of 
basic pay of level V of the Executive Schedule, as prescribed by 
section 5316 of title 5.
    ``(c) Retirement.--For purposes of Federal laws relating to 
retirement, including chapters 83 and 84 of title 5, magistrates 
appointed under this section shall be deemed to be appointed under 
section 631 of this title.
    ``(d) Regulations.--Except as provided under subsection (c), 
chapter 43 shall not apply to magistrates appointed under this chapter, 
except the chief judge may prescribe rules similar to the provisions of 
chapter 43 to apply to magistrates.
``Sec. 203. Retirement of judges of the United States Court of Asbestos 
              Claims
    ``(a) In General.--For purposes of Federal laws relating to 
retirement, judges of the Court of Asbestos Claims shall be treated in 
the same manner and to the same extent as judges of the Court of 
Federal Claims.
    ``(b) Regulations.--In carrying out this section--
            ``(1) the Director of the Administrative Office of the 
        United States Courts shall promulgate regulations to apply 
        provisions similar to section 178 of this title (including the 
        establishment of a Court of Asbestos Claims Judges Retirement 
        Fund) to judges of the Court of Asbestos Claims; and
            ``(2) the Director of the Office of Personnel Management 
        shall promulgate regulations to apply chapters 83 and 84 of 
        title 5 to judges of the Court of Asbestos Claims.''.
    (b) Technical and Conforming Amendment.--The table of chapters for 
part I of title 28, United States Code, is amended by striking the item 
relating to chapter 9, and inserting after the item relating to chapter 
7 the following:

``9. United States Court of Asbestos Claims.''.

        Subtitle B--Asbestos Injury Claims Resolution Procedures

SEC. 111. FILING OF CLAIMS.

    (a) Who May Submit.--
            (1) General rule.--Any individual who has suffered from an 
        eligible disease or condition that is believed to meet the 
        requirements established under subtitle C (or the spouse, 
        parent, child, or other relative of such individual in a 
        representative capacity, or the executor of the estate of such 
        individual) may file a claim with the Asbestos Court for an 
        award with respect to such injury.
            (2) Rules.--The Asbestos Court may issue procedural rules 
        to specify individuals who may file an asbestos claim as a 
        representative of another individual.
            (3) Limitation.--An asbestos claim may not be filed by any 
        person seeking contribution or indemnity.
    (b) Required Information.--To be valid, an asbestos claim filed 
under subsection (a) shall be notarized and include--
            (1) the name, social security number, gender, date of 
        birth, and, if applicable, date of death of the claimant;
            (2) information relating to the identity of dependents and 
        beneficiaries of the claimant;
            (3) a detailed description of the work history of the 
        claimant, including social security records or a signed release 
        permitting access to such records;
            (4) a detailed description of the asbestos exposure of the 
        claimant, including information on the identity of any product 
        or manufacturer, site, or location of exposure, plant name, and 
        duration and intensity of exposure;
            (5) a detailed description of the tobacco product use 
        history of the claimant, including frequency and duration;
            (6) an identification and description of the asbestos-
        related diseases of the claimant, including a written report by 
        the claimant's physician with medical diagnoses and test 
        results necessary to make a determination of medical 
        eligibility that complies with the applicable requirements of 
this subtitle and subtitle C;
            (7) a description of any prior or pending civil action or 
        other claim brought by the claimant for asbestos-related injury 
        or any other pulmonary, parenchymal or pleural injury, 
        including an identification of any recovery of compensation or 
        damages through settlement, judgment, or otherwise; and
            (8) any other information that is required to be included 
        under procedural rules issued by the Court.
    (c) Statute of Limitations.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), if an individual fails to file an asbestos claim with the 
        Asbestos Court under this section within 2 years after the date 
        on which the individual first--
                    (A) received a medical diagnosis of an eligible 
                disease or condition as provided for under this 
                subtitle and subtitle C; or
                    (B) discovered facts that would have led a 
                reasonable person to obtain a medical diagnosis with 
                respect to an eligible disease or condition,
        any claim relating to that injury, and any other asbestos claim 
        related to that injury, shall be extinguished, and any recovery 
        thereon shall be prohibited.
            (2) Effect on pending claims.--If an asbestos claimant has 
        any timely filed claim for an asbestos-related injury that is 
        pending in a Federal or State court or with a trust established 
        under title 11, United States Code, on the date of enactment of 
        this Act, such claimant shall file an asbestos claim under this 
        section within 2 years after such date of enactment or be 
        barred from receiving any award under this title.
            (3) Effect of multiple injuries.--An asbestos claimant who 
        receives an award under this title for an eligible disease or 
        condition, and who subsequently develops another such injury, 
        shall be eligible for additional awards under this title 
        (subject to appropriate setoffs for such prior recovery of any 
        award under this title and from any other collateral source) 
        and the statute of limitations under paragraph (1) shall not 
        begin to run with respect to such subsequent injury until such 
        claimant obtains a medical diagnosis of such other injury or 
        discovers facts that would have led a reasonable person to 
        obtain such a diagnosis.
            (4) Rule of construction.--Paragraph (2) shall be 
        interpreted as a statute of limitations and be construed to the 
        benefit of the Fund and of any person who might otherwise have 
        been made subject to an asbestos claim to which such paragraph 
        is applied.

SEC. 112. GENERAL RULE CONCERNING NO-FAULT COMPENSATION.

    An asbestos claimant shall not be required to demonstrate that the 
asbestos-related injury for which the claim is being made resulted from 
the negligence or other fault of any other person.

SEC. 113. ESSENTIAL ELEMENTS OF ELIGIBLE ASBESTOS CLAIM.

    To be eligible for an award under this subtitle for an asbestos-
related injury, an individual shall--
            (1) file an asbestos claim in a timely manner in accordance 
        with section 111; and
            (2) prove, by a preponderance of the evidence that--
                    (A) the claimant suffers from an eligible disease 
                or condition, as demonstrated by evidence (submitted as 
                part of the claim) that meets the medical criteria 
                requirements and diagnostic criteria requirements 
                established under subtitle C; and
                    (B) the claimant meets the latency criteria 
                requirements and the exposure criteria requirements 
                established under subtitle C.

SEC. 114. ELIGIBILITY DETERMINATIONS AND CLAIM AWARDS.

    (a) Claims Examiners.--
            (1) In general.--The Asbestos Court shall appoint, or 
        contract for the services of, qualified individuals to assist 
        magistrates by conducting eligibility reviews of asbestos 
        claims filed with the Court.
            (2) Criteria.--The Asbestos Court shall establish criteria 
        with respect to the qualifications of individuals who are 
        eligible to serve as claims examiners and, in developing such 
        criteria, shall consult with such experts as the Court 
        determines appropriate.
    (b) Referral of Asbestos Claim.--Not later than 20 days after the 
filing of an asbestos claim with the Asbestos Court, the Court shall 
refer such claim to a magistrate.
    (c) Initial Review.--
            (1) In general.--Under the direction of a magistrate, a 
        claims examiner shall make an initial review of an asbestos 
        claim to determine whether all required information has been 
        submitted by the claimant.
            (2) Notice of incomplete claim.--If the claims examiner 
        determines that all required information has not been 
        submitted, the examiner--
                    (A) shall notify the claimant of such determination 
                and require the submission of additional information 
                necessary for a determination of eligibility;
                    (B) may compel the submission of any additional 
                information;
                    (C) may request that the claimant undergo 
                additional medical examinations and tests if 
                information from such examinations or tests is 
                necessary to enable the examiner to make a 
                determination of medical eligibility; and
                    (D) may require any releases necessary to enable 
                the examiner to obtain medical or other information 
                relevant to the determination of eligibility.
    (d) Expeditious Determinations.--The Asbestos Court shall prescribe 
rules to expedite claims for asbestos claimants with exigent 
circumstances.
    (e) Audit and Personnel Review Procedures.--The Asbestos Court 
shall establish audit and personnel review procedures for evaluating 
the accuracy of eligibility recommendations of magistrates.
    (f) Eligibility Determinations.--
            (1) In general.--Not later than 60 days after the receipt 
        by a magistrate of all required information and requested 
        medical advice with respect to an asbestos claim, the 
        magistrate shall transmit a recommendation of the amount of any 
        award to which the claimant is entitled and findings of fact to 
        a judge of the Asbestos Court.
            (2) Admissibility of findings of fact.--A determination 
        under paragraph (1) shall include relevant findings of fact and 
        shall be admissible as evidence in any judicial review.
    (g) Decision of Judge.--
            (1) In general.--Not later than 30 days after receipt of a 
        recommendation of a magistrate, a judge of the Asbestos Court 
        shall make a final decision of any award to which the claimant 
        is entitled.
            (2) Waiver of judicial review.--The final decision under 
        paragraph (1) shall include an acceptance form by which the 
        claimant may waive the right to judicial review and expedite 
        payment of an award from the Fund.
    (h) Awarding of Compensation.--
            (1) In general.--If a judge of the Asbestos Court 
        determines that an asbestos claimant is entitled to an award, 
        the Court shall notify the Administrator to award the claimant 
        an amount of the judge's decision from the Fund.
            (2) Claim extinguished.--The acceptance of a payment under 
        this Act shall extinguish all claims related to such payment.

SEC. 115. MEDICAL EVIDENCE AUDITING PROCEDURES.

    (a) Development.--The Asbestos Court shall develop methods for 
auditing the medical evidence submitted as part of an asbestos claim, 
including methods to ensure the independent reading of x-rays and 
results of pulmonary function tests. The Court may develop additional 
methods for auditing other types of evidence or information received by 
the Court.
    (b) Refusal To Consider Certain Evidence.--
            (1) In general.--If the Asbestos Court determines that an 
        audit conducted in accordance with the methods developed under 
        subsection (a) demonstrates that the medical evidence submitted 
        by a specific physician or medical facility is not consistent 
        with prevailing medical practices or the applicable 
        requirements of this Act, the Court shall notify claims 
        examiners and the magistrates that any medical evidence from 
        such physician or facility shall be unacceptable for purposes 
        of establishing eligibility for an award under this Act.
            (2) Notification.--Upon a determination by the Asbestos 
        Court under paragraph (1), the Court shall notify the physician 
        or medical facility involved of the results of the audit. Such 
        physician or facility shall have a right to appeal the 
        determination of the Court under procedures issued by the 
        Court.

SEC. 116. CLAIMANT ASSISTANCE PROGRAM.

    (a) Establishment.--The Asbestos Court shall establish an asbestos 
claimant assistance program to provide assistance to claimants in 
preparing and submitting asbestos claim applications and in responding 
to claimant inquiries.
    (b) Legal Assistance.--
            (1) In general.--As part of the program established under 
        subsection (a), the Asbestos Court shall establish a legal 
        assistance program to provide assistance to asbestos claimants 
        concerning legal representation issues.
            (2) List of qualified attorneys.--As part of the program, 
        the Court shall maintain a roster of qualified attorneys who 
        have agreed to provide pro bono services to asbestos claimants 
        under rules established by the Court. The claimants shall not 
        be required to use the attorneys listed on such roster.

                      Subtitle C--Medical Criteria

SEC. 121. ESSENTIAL ELEMENTS OF ELIGIBLE ASBESTOS CLAIM.

    To be eligible for an award under this title for an asbestos-
related injury, an individual shall--
            (1) file an asbestos claim under this title in a timely 
        manner; and
            (2) prove, by a preponderance of the evidence that--
                    (A) the claimant suffers from an eligible disease 
                or condition, as demonstrated by evidence (submitted as 
                part of the claim) that meets the diagnostic criteria 
                requirements described in section 122 and the medical 
                criteria requirements described in section 124; and
                    (B) the claimant meets the latency criteria 
                requirements described in section 123 and the exposure 
                criteria requirements described in section 125.

SEC. 122. DIAGNOSTIC CRITERIA REQUIREMENTS.

    (a) In General.--To be eligible to receive an award under this 
title for an asbestos-related injury, the claim submitted by the 
asbestos claimant shall demonstrate a medical diagnosis that meets the 
requirements of this section.
    (b) Diagnosis.--A medical diagnosis meets the requirements of this 
section if the diagnosis--
            (1) is made by a physician who--
                    (A) treated, or is treating, the claimant;
                    (B) conducted an in-person medical examination of 
                the claimant; and
                    (C) is licensed to practice medicine in the State 
                in which the examination occurred and in which the 
                diagnosis is rendered;
            (2) includes a review by the physician of the work history, 
        asbestos exposure pattern, and smoking history of the claimant, 
        or other factors determined appropriate by the Asbestos Court;
            (3) is independently verified with respect to the duration, 
        proximity, regularity, and intensity of the asbestos exposure 
        involved; and
            (4) has excluded other more likely causes of the injury of 
        the claimant.
    (c) Results of Medical Examinations and Tests.--
            (1) In general.--In making the demonstration required under 
        subsection (a), an asbestos claimant shall submit--
                    (A) x-rays (including both films and B-reader 
                reports);
                    (B) detailed results of pulmonary function tests 
                (including spirometric tracings);
                    (C) laboratory tests; and
                    (D) the results of medical examination or reviews 
                of other medical evidence.
            (2) Procedural requirements.--A submission under paragraph 
        (1) shall comply with the requirements of this Act and 
        recognized medical standards regarding equipment, testing 
        methods, and procedures to ensure that such medical evidence is 
        reliable.
    (d) Sufficiency of Medical Evidence.--In making determinations 
under this section, a magistrate shall not make a determination unless 
the medical evidence provided in support of the asbestos claim is 
credible and consistent with this section, the medical criteria 
described in section 124, and recognized medical standards.
    (e) Attorney Retention Agreements.--An attorney retention agreement 
shall not be required as a prerequisite to a medical examination or 
medical screening for purposes of obtaining a medical diagnosis or 
other medical information under this section.
    (f) Rules.--The Asbestos Court shall prescribe rules to implement 
the diagnostic criteria requirements to be used in applying this 
section.

SEC. 123. LATENCY CRITERIA REQUIREMENTS.

    (a) In General.--To be eligible to receive an award under this 
title for an asbestos-related injury, the claim submitted by the 
asbestos claimant shall demonstrate that the claimant was exposed to 
asbestos--
            (1) in a manner that meets the exposure requirements of 
        sections 124 and 125;
            (2) within the United States or its territories or 
        possessions; and
            (3) for at least 10 years before the initial diagnosis of 
        any asbestos-related injury.
    (b) Consistency With Medical Criteria.--An asbestos claimant shall 
be required to demonstrate that any delay between asbestos exposure and 
the asbestos-related injury is consistent with medical criteria 
concerning the latency periods typically associated with the disease 
category for which the claim is being made.
    (c) Variations in Latency Periods.--Latency periods under this 
section may vary based on the eligible disease or condition involved.
    (d) Rules.--The Asbestos Court shall prescribe rules, based on the 
medical literature or other appropriate medical evidence concerning 
latency periods, for the purpose of implementing the criteria used in 
applying this section.

SEC. 124. MEDICAL CRITERIA REQUIREMENTS.

    (a) Definitions.--In this section, the following definitions shall 
apply:
            (1) Bilateral asbestos-related nonmalignant disease.--The 
        term ``bilateral asbestos-related nonmalignant disease'' means 
        a diagnosis of bilateral asbestos-related nonmalignant disease 
        based on--
                    (A) an x-ray reading of \1/0\ or higher on the ILO 
                scale; or
                    (B) an x-ray showing bilateral pleural plaques or 
                pleural thickening, bilateral interstitial fibrosis, or 
                bilateral interstitial markings.
            (2) Bilateral pleural disease of b2.--The term ``bilateral 
        pleural disease of B2'' means a chest wall pleural thickening 
        or plaque with a maximum width of at least 5 millimeters and a 
        total length of at least \1/4\ of the projection of the lateral 
        chest wall.
            (3) FEV1.--The term ``FEV1'' means forced expiratory volume 
        (1 second), which is the maximal volume of air expelled in 1 
        second during performance of the spirometric test for forced 
        vital capacity.
            (4) 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.
            (5) ILO grade.--The term ``ILO grade'' means the 
        radiological ratings for the presence of lung or pleural 
        changes as determined from a chest x-ray, all as established 
        from time to time by the International Labor Organization.
            (6) Pathological evidence of asbestosis.--The term 
        ``pathological evidence of asbestosis'' means proof of 
        asbestosis based on the pathological grading system for 
        asbestosis described in the Special Issue of the Archives of 
        Pathology and Laboratory Medicine, ``Asbestos-associated 
        Diseases'', Vol. 106, No. 11, App. 3 (October 8, 1982).
            (7) Pulmonary function testing.--The term ``pulmonary 
        function testing'' means spirometry testing that is in 
        compliance with the quality criteria established from time to 
        time by the American Thoracic Society and is performed on 
        equipment which is in compliance with the standards of the 
        American Thoracic Society for technical quality and 
        calibration.
            (8) Significant occupational exposure.--The term 
        ``significant occupational exposure'' means employment for a 
        cumulative period of at least 5 years, in an industry and an 
        occupation in which the claimant--
                    (A) handled raw asbestos fibers on a regular basis;
                    (B) fabricated asbestos-containing products so that 
                the claimant in the fabrication process was exposed on 
                a regular basis to raw asbestos fibers;
                    (C) altered, repaired, or otherwise worked with an 
                asbestos-containing product such that the claimant was 
                exposed on a regular basis to asbestos fibers; or
                    (D) was employed in an industry and occupation such 
                that the claimant worked on a regular basis in close 
                proximity to workers engaged in the activities 
                described under subparagraph (A), (B), or (C).
            (9) TLC.--The term ``TLC'' means total lung capacity, which 
        is the volume of air in the lung after maximal inspiration.
    (b) Requirement.--To be eligible for an award or medical monitoring 
reimbursement under this title, a claimant shall establish that the 
claimant meets the medical criteria for 1 of the following categories:
            (1) For Level I: Asymptomatic Exposure, the claimant shall 
        provide--
                    (A) a diagnosis that meets the requirements of 
                section 122 of a bilateral asbestos-related 
                nonmalignant disease or an asbestos-related malignancy 
                (except mesothelioma); and
                    (B) meaningful and credible evidence of 6 months of 
                occupational exposure to asbestos before December 31, 
                1982.
            (2) For Level II: Asbestosis/Pleural Disease A, the 
        claimant shall provide--
                    (A) a diagnosis that meets the requirements of 
                section 122 of a bilateral asbestos-related 
                nonmalignant disease by B-reader certified chest x-
                rays; and
                    (B) meaningful and credible evidence of--
                            (i) 6 months of occupational exposure to 
                        asbestos before December 31, 1982; and
                            (ii) significant occupational exposure.
            (3) For Level III: Asbestosis/Pleural Disease B, the 
        claimant shall provide--
                    (A) a diagnosis that meets the requirements of 
                section 122 of asbestosis by B-reader certified chest 
                x-rays showing bilateral pleural disease of B2 or 
                greater, or by pathological evidence of asbestosis;
                    (B) pulmonary function testing that shows--
                            (i) TLC less than 80 percent of predicted; 
                        or
                            (ii) FVC less than 80 percent of predicted, 
                        and a FEV1/FVC ratio of not less than 65 
                        percent;
                    (C) meaningful and credible evidence of--
                            (i) 6 months of occupational exposure to 
                        asbestos before December 31, 1982; and
                            (ii) significant occupational exposure; and
                    (D) supporting medical documentation establishing 
                asbestos exposure as a contributing factor in causing 
                the pulmonary condition in question.
            (4) For Level IV: Severe Asbestosis, the claimant shall 
        provide--
                    (A) a diagnosis that meets the requirements of 
                section 122 of asbestosis by B-reader certified chest 
                x-rays of ILO Grade \2/1\ or greater, or by 
                pathological evidence of asbestosis;
                    (B) pulmonary function testing that shows--
                            (i) TLC less than 65 percent of predicted; 
                        or
                            (ii) FVC less than 65 percent of predicted, 
                        and a FEV1/FVC ratio greater than 65 percent;
                    (C) meaningful and credible evidence of--
                            (i) 6 months of occupational exposure to 
                        asbestos before December 31, 1982; and
                            (ii) significant occupational exposure; and
                    (D) supporting medical documentation establishing 
                asbestos exposure as a contributing factor in causing 
                the pulmonary condition in question.
            (5) For Level V: Other Cancer, the claimant shall provide--
                    (A) a diagnosis that meets the requirements of 
                section 122 of a primary laryngeal, esophageal, 
                pharyngeal, or stomach cancer;
                    (B) evidence of an underlying bilateral asbestos-
                related nonmalignant disease;
                    (C) meaningful and credible evidence of--
                            (i) 6 months of occupational exposure to 
                        asbestos before December 31, 1982; and
                            (ii) significant occupational exposure; and
                    (D) supporting medical documentation establishing 
                asbestos exposure as a contributing factor in causing 
                the other cancer in question.
            (6) For Level VI: Lung Cancer One, the claimant shall 
        provide--
                    (A) a diagnosis that meets the requirements of 
                section 122 of a primary lung cancer;
                    (B) meaningful and credible evidence of 6 months of 
                occupational exposure to asbestos before December 31, 
                1982; and
                    (C) supporting medical documentation and 
                certification by or on behalf of the claimant 
                establishing asbestos exposure as a contributing factor 
                causing the relevant lung cancer.
            (7) For Level VII: Lung Cancer Two, the claimant shall 
        provide--
                    (A) a diagnosis that meets the requirements of 
                section 122 of a primary lung cancer;
                    (B) evidence of an underlying bilateral asbestos-
                related nonmalignant disease;
                    (C) meaningful and credible evidence of--
                            (i) 6 months of occupational exposure to 
                        asbestos before December 31, 1982; and
                            (ii) significant occupational exposure; and
                    (D) supporting medical documentation and 
                certification by or on behalf of the claimant 
                establishing asbestos exposure as a contributing factor 
                causing the relevant lung cancer.
            (8) For Level VIII: Mesothelioma, the claimant shall 
        provide--
                    (A) a diagnosis that meets the requirements of 
                section 122 of mesothelioma; and
                    (B) meaningful and credible evidence of exposure to 
                asbestos before December 31, 1982.

SEC. 125. EXPOSURE CRITERIA REQUIREMENTS.

    (a) Requirement.--To be eligible to receive an award under this 
title for an asbestos-related injury, the claim submitted by the 
asbestos claimant shall contain information to demonstrate that--
            (1) the claimant meets the minimum exposure requirements 
        under this subtitle; and
            (2) such exposure to asbestos occurred within the United 
        States, its territories, or possessions.
    (b) Burden of Proof.--
            (1) In general.--An asbestos claimant has the burden of 
        demonstrating meaningful and credible exposure to asbestos for 
        purposes of this subtitle.
            (2) Evidence.--The demonstration under paragraph (1) may be 
        established by--
                    (A) an affidavit submitted by the claimant, a 
                coworker of the claimant, or a family member, in the 
                case of a deceased claimant;
                    (B) employment records;
                    (C) invoices;
                    (D) construction or other similar records; or
                    (E) other credible evidence.
    (c) Rules.--
            (1) Exposure information.--The Asbestos Court shall issue 
        rules prescribing specific exposure information that shall be 
        submitted to permit the Court to process an asbestos claim and 
        prescribing a proof of claim form. Such rules may provide that 
        a claims examiner or magistrate, as applicable, may require the 
        submission of other or additional evidence of exposure when 
        determined to be appropriate and necessary.
            (2) Rebuttable presumptions.--The Asbestos Court may 
        prescribe rules identifying specific industries, occupations 
        within those industries, time periods, and employment periods 
        for which significant occupational exposure (as defined under 
        section 124) may be a rebuttable presumption for asbestos 
        claimants who provide meaningful and credible evidence that the 
        claimant worked in that industry and occupation for the 
        requisite period of time. The Administrator may provide 
        evidence to rebut this presumption.

                           Subtitle D--Awards

SEC. 131. AMOUNT.

    (a) In General.--An asbestos claimant who meets the requirements of 
section 113 shall be entitled to an award in an amount determined by 
reference to the benefit table contained in subsection (b).
    (b) Benefit Table.--
            (1) In general.--An asbestos claimant with an eligible 
        disease or condition established in accordance with section 
        124, other than an injury described in paragraph (2), shall be 
        eligible for an award according to the following schedule:
      

             Level                          Scheduled Condition or Disease     Scheduled Value
 
                I                             Asymptomatic Exposure                $0
                II                            Asbestosis/Pleural Disease A         $0
                III                           Asbestosis/Pleural Disease B         $40,000
                IV                            Severe Asbestosis                    $400,000
                V                             Other Cancer                         $200,000
                VI                            Lung Cancer I                        $0 or $50,000
                VII                           Lung Cancer II                       $100,000 or
                                                                                     $400,000
                VIII                          Mesothelioma                         $750,000
 

            (2) Scheduled values for levels vi and vii.--
                    (A) Definition.--In this paragraph, the term 
                ``nonsmoker'' means a claimant who--
                            (i) never smoked; or
                            (ii) has not smoked during any portion of 
                        the 12-year period preceding the diagnosis of 
                        the lung cancer.
                    (B) Scheduled values.--In accordance with 
                subsection (a), a claimant--
                            (i) who is a nonsmoker shall receive--
                                    (I) $50,000 for Level VI; and
                                    (II) $400,000 for Level VII; and
                            (ii) who is not a nonsmoker shall receive--
                                    (I) $0 for Level VI; and
                                    (II) $100,000 for Level VII.
            (3) Medical monitoring.--An asbestos claimant with 
        asymptomatic exposure or asbestosis/pleural disease A, based on 
        the criteria under section 124(b)(1), shall only be eligible 
        for medical monitoring reimbursement.

SEC. 132. MEDICAL MONITORING.

    (a) Relation to Statute of Limitations.--The filing of an asbestos 
claim that seeks reimbursement for medical monitoring shall not be 
considered as evidence that the claimant has discovered facts that 
would otherwise commence the period applicable for purposes of the 
statute of limitations under section 111(c).
    (b) Costs.--Reimbursable medical monitoring costs shall include the 
costs of a claimant not covered by health insurance for x-ray tests and 
pulmonary function tests every 3 years.
    (c) Regulations.--The Administrator shall promulgate regulations 
that establish--
            (1) the reasonable costs for medical monitoring that is 
        reimbursable; and
            (2) the procedures applicable to asbestos claimants.

SEC. 133. PAYMENTS.

    (a) Structured Payments.--
            (1) In general.--An asbestos claimant who is entitled to an 
        award shall receive the amount of the award through structured 
        payments from the Fund, made over a period of not less than 3 
        years.
            (2) Accelerated payments.--The Administrator shall develop 
        guidelines to provide for accelerated payments to asbestos 
        claimants who are mesothelioma victims and who are alive on the 
        date on which the administrator receives notice of the 
        eligibility of the claimant. Such payments shall be credited 
        against the first regular payment under the structured payment 
        plan for the claimant.
            (3) Expedited payments.--The Administrator shall develop 
        guidelines to provide for expedited payments to asbestos 
        claimants in cases of exigent circumstances or extreme hardship 
        caused by asbestos-related injury.
            (4) Annuity.--An asbestos claimant may elect to receive any 
        payments to which they are entitled under this title in the 
        form of an annuity.
    (b) Limitation on Transferability.--An asbestos claim shall not be 
assignable or otherwise transferable under this Act.
    (c) Creditors.--An award under this title shall be exempt from all 
claims of creditors and from levy, execution, and attachment or other 
remedy for recovery or collection of a debt, and such exemption may not 
be waived.
    (d) Treatment for Internal Revenue Purposes.--All amounts of an 
award received under this subtitle shall be deemed to be compensation 
for personal physical injuries or physical sickness under section 104 
of the Internal Revenue Code of 1986.
    (e) Medicare as Secondary Payer.--No award under this title shall 
be deemed a payment for purposes of section 1862 of the Social Security 
Act (42 U.S.C. 1395y).

SEC. 134. REDUCTION IN BENEFIT PAYMENTS FOR COLLATERAL SOURCES.

    (a) In General.--The amount of an award otherwise available to an 
asbestos claimant under this title shall be reduced by the amount of 
collateral source compensation that the claimant received, or is 
entitled to receive, for the asbestos-related injury that is the 
subject of the compensation.
    (b) Exclusions.--In no case shall statutory benefits under workers' 
compensation laws and veterans benefits programs be deemed as 
collateral source compensation for purposes of this section.

                       Subtitle E--En Banc Review

SEC. 141. EN BANC REVIEW.

    (a) In General.--
            (1) En banc panels.--The chief judge of the Asbestos Court 
        shall--
                    (A) establish en banc panels to carry out this 
                subtitle; and
                    (B) assign 3 judges of the Asbestos Court to each 
                en banc panel.
            (2) Random assignment of panels.--In carrying out paragraph 
        (1), the chief judge shall--
                    (A) except as necessary to effectuate subparagraph 
                (B), assign judges to panels randomly; and
                    (B) assign appeals to panels in a manner that 
                results in no judge reviewing a decision made by that 
                judge.
            (3) Filing of appeal.--Not later than 30 days after 
        receiving notice of the decision of a judge under section 114, 
        a claimant may file an appeal for review with an en banc panel 
        of the Asbestos Court.
    (b) De Novo Review.--An Asbestos Court panel shall provide a de 
novo review of the magistrate's determination and the judge's decision.
    (c) Representation of the Administrator.--The Administrator may 
appoint counsel to represent the interests of the Fund and the 
Administrator in all proceedings before a panel, including oral 
arguments and the submission of briefs.
    (d) Federal Rules of Appellate Procedure.--An Asbestos Court panel 
shall apply the Federal Rules of Appellate Procedures to all 
proceedings before the panel.
    (e) Decision of Panel.--An Asbestos Court panel shall enter a final 
decision on an appeal on the earlier date occurring--
            (1) not later than 30 days after the date of the conclusion 
        of oral arguments; or
            (2) not later than 60 days after an appeal is filed under 
        this section.

            TITLE II--ASBESTOS INJURY CLAIMS RESOLUTION FUND

           Subtitle A--Asbestos Defendants Funding Allocation

SEC. 201. DEFINITIONS.

    In this subtitle, the following definitions shall apply:
            (1) Affiliated group.--The term ``affiliated group''--
                    (A) means a defendant participant that is an 
                ultimate parent and any person whose entire beneficial 
                interest is directly or indirectly owned by that 
                ultimate parent on the date of enactment of this Act; 
                and
                    (B) shall not include any person that is a debtor 
                or any direct or indirect majority-owned subsidiary of 
                a debtor.
            (2) Debtor.--The term ``debtor''--
                    (A) means--
                            (i) a person that is subject to a case 
                        pending under a chapter of title 11, United 
                        States Code, on the date of enactment of this 
                        Act or at any time during the 1-year period 
                        immediately preceding that date, irrespective 
                        of whether the debtor's case under that title 
                        has been dismissed; and
                            (ii) all of the direct or indirect 
                        majority-owned subsidiaries of a person 
                        described under clause (i), regardless of 
                        whether any such majority-owned subsidiary has 
                        a case pending under title 11, United States 
                        Code; and
                    (B) shall not include an entity--
                            (i) subject to chapter 7 of title 11, 
                        United States Code, if a final decree closing 
                        the estate shall have been entered before the 
                        date of enactment of this Act; or
                            (ii) subject to chapter 11 of title 11, 
                        United States Code, if a plan of reorganization 
                        for such entity shall have been confirmed by a 
                        duly entered order or judgment of a court that 
                        is no longer subject to any appeal or judicial 
                        review.
            (3) Indemnifiable cost.--The term ``indemnifiable cost'' 
        means a cost, expense, debt, judgment, or settlement incurred 
        with respect to an asbestos claim that, at any time before 
        December 31, 2002, was or could have been subject to 
        indemnification, contribution, surety, or guaranty.
            (4) Indemnitee.--The term ``indemnitee'' means a person 
        against whom any asbestos claim has been asserted before 
        December 31, 2002, who has received from any other person, or 
        on whose behalf a sum has been paid by such other person to any 
        third person, in settlement, judgment, defense, or indemnity in 
        connection with an alleged duty with respect to the defense or 
        indemnification of such person concerning that asbestos claim, 
        other than under a policy of insurance or reinsurance.
            (5) Indemnitor.--The term ``indemnitor'' means a person who 
        has paid under a written agreement at any time before December 
        31, 2002, a sum in settlement, judgment, defense, or indemnity 
        to or on behalf of any person defending against an asbestos 
        claim, in connection with an alleged duty with respect to the 
        defense or indemnification of such person concerning that 
        asbestos claim, except that payments by an insurer or reinsurer 
        under a contract of insurance or reinsurance shall not make the 
        insurer or reinsurer an indemnitor for purposes of this 
        subtitle.
            (6) Prior asbestos expenditures.--The term ``prior asbestos 
        expenditures''--
                    (A) means the gross total amount paid by or on 
                behalf of a person at any time before December 31, 
                2002, in settlement, judgment, defense, or indemnity 
                costs related to all asbestos claims against that 
                person;
                    (B) includes payments made by insurance carriers to 
                or for the benefit of such person or on such person's 
                behalf with respect to such asbestos claims, except as 
                provided in section 204(g);
                    (C) shall not include any payment made by a person 
                in connection with any activities or disputes related 
                to insurance coverage matters for asbestos-related 
                liabilities; and
                    (D) shall not include any payment made by or on 
                behalf of persons who are or were common carriers by 
                railroad for asbestos claims brought under the Act of 
                April 22, 1908 (45 U.S.C. 51 et seq.), commonly known 
                as the Federal Employers' Liability Act, including 
                settlement, judgment, defense, or indemnity costs 
                associated with these claims.
            (7) Trust.--The term ``trust'' means any person formed 
        under section 524(g) of title 11, United States Code, or formed 
        under any plan under section 1129 of title 11, United States 
        Code, for any purpose, including administering and paying 
        asbestos claims.
            (8) Ultimate parent.--The term ``ultimate parent'' means a 
        person--
                    (A) that owned, as of December 31, 2002, the entire 
                beneficial interest, directly or indirectly, of at 
                least 1 other person; and
                    (B) whose entire beneficial interest was not owned, 
                on December 31, 2002, directly or indirectly, by any 
                other single person.

SEC. 202. AUTHORITY AND TIERS.

    (a) Assessment.--
            (1) In general.--The Administrator shall assess from 
        defendant participants contributions to the Fund in accordance 
        with this section based on tiers and subtiers assigned to 
        defendant participants.
            (2) Aggregate contribution level.--The total contribution 
        required of all defendant participants over the life of the 
        Fund shall be equal to $45,000,000,000.
    (b) Tier I.--The Administrator shall assign to Tier I all debtors 
that, together with all of their direct or indirect majority-owned 
subsidiaries, have prior asbestos expenditures greater than $1,000,000.
    (c) Treatment of Tier I Business Entities in Bankruptcy.--
            (1) Definition.--In this subsection, the term ``bankrupt 
        business entity'' means a person that is not a natural person 
        that--
                    (A) filed under chapter 11, of title 11, United 
                States Code, before January 1, 2003;
                    (B) has not confirmed a plan of reorganization as 
                of the date of enactment of this Act; and
                    (C) the Chief Executive Officer, Chief Financial 
                Officer, or Chief Legal Officer of that business entity 
                certifies in writing to the bankruptcy court presiding 
                over the business entity's case, that asbestos 
                liability was neither the sole nor precipitating cause 
                for the filing under chapter 11.
            (2) Proceeding with reorganization plan.--A bankrupt 
        business entity may proceed with the filing, solicitation, and 
        confirmation of a plan of reorganization that does not comply 
        with the requirements of this Act, including a trust and 
        channeling injunction under section 524(g) of title 11, United 
        States Code, notwithstanding any other provisions of this Act, 
        if--
                    (A) the bankruptcy court presiding over the chapter 
                11 case of the bankrupt business entity determines 
                that--
                            (i) confirmation is necessary to permit the 
                        reorganization of that entity and assure that 
                        all creditors and that entity are treated 
                        fairly and equitably; and
                            (ii) confirmation is clearly favored by the 
                        balance of the equities; and
                    (B) an order confirming the plan of reorganization 
                is entered by the bankruptcy court within 9 months 
                after the date of enactment of this Act or such longer 
                period of time approved by the bankruptcy court for 
                cause shown.
            (3) Applicability.--If the bankruptcy court does not make 
        the required determination, or if an order confirming the plan 
        is not entered within 9 months after the effective date of this 
        Act or such longer period of time approved by the bankruptcy 
        court for cause shown, the provisions of the Act shall apply to 
        the bankrupt business entity notwithstanding the certification. 
        Any timely appeal under title 11, United States Code, from a 
        confirmation order entered during the applicable time period 
        shall automatically extend the time during which this Act is 
        inapplicable to the bankrupt business entity, until the appeal 
        is fully and finally resolved.
            (4) Offsets.--
                    (A) Payments by insurers.--To the extent that a 
                bankrupt business entity successfully confirms a plan 
                of reorganization, including a trust under section 
                524(g) of title 11, United States Code, and channeling 
                injunction that involves payments by insurers who are 
                otherwise subject to this Act, an insurer who makes 
                payments to the trust under section 524(g) of title 11, 
                United States Code, shall obtain a dollar for dollar 
                reduction in the amount otherwise payable by that 
                insurer under this Act to the Fund.
                    (B) Contributions to fund.--Any cash payments by a 
                bankrupt business entity, if any, to a trust under 
                section 524(g) of title 11, United States Code, may be 
                counted as a contribution to the Fund.
    (d) Tiers II Through VI.--Except as provided in sections 202(b), 
204(b), and 204(g), persons or affiliated groups shall be assigned to 
Tier II, III, IV, V, or VI according to the prior asbestos expenditures 
paid by such persons or affiliated groups as follows:
            (1) Tier II: $75,000,000 or greater.
            (2) Tier III: $50,000,000 or greater, but less than 
        $75,000,000.
            (3) Tier IV: $10,000,000 or greater, but less than 
        $50,000,000.
            (4) Tier V: $5,000,000 or greater, but less than 
        $10,000,000.
            (5) Tier VI: $1,000,000 or greater, but less than 
        $5,000,000.
    (e) Assignments and Costs.--
            (1) Permanent assignment.--Subject to section 204(d), after 
        the Administrator has assigned a person or affiliated group to 
        a tier under this section, such person or affiliated group 
        shall remain in that tier throughout the life of the Fund, 
        regardless of subsequent events, including--
                    (A) the filing of a petition under a chapter of 
                title 11, United States Code;
                    (B) a discharge from bankruptcy;
                    (C) the confirmation of a plan of reorganization; 
                or
                    (D) the sale or transfer of assets to any other 
                person or affiliated group.
            (2) Costs.--The payment of contributions to the Fund by all 
        persons that are the subject of a case under a chapter of title 
        11, United States Code, after the date of enactment of this 
        Act--
                    (A) shall constitute costs and expenses of 
                administration of the case under section 503 of that 
                title 11 and shall be payable in accordance with the 
                payment provisions under this subtitle notwithstanding 
                the pendency of the case under that title 11;
                    (B) shall not be stayed or affected as to 
                enforcement or collection by any stay or injunction 
                power of any court; and
                    (C) shall not be impaired or discharged in any 
                current or future case under title 11, United States 
                Code.
    (f) Superseding Provisions.--Any plan of reorganization with 
respect to any debtor assigned to Tier I and any agreement, 
understanding, or undertaking by any such debtor or any third party 
with respect to the treatment of any asbestos claim filed before the 
date of enactment of this Act and subject to confirmation of a plan 
under chapter 11 of title 11, United States Code, shall be superseded 
in their entirety by this Act. Any such plan of reorganization, 
agreement, understanding, or undertaking by any debtor or any third 
party shall be of no force or effect, and no person shall have any 
rights or claims with respect to any of the foregoing.

SEC. 203. SUBTIER ASSESSMENTS.

    (a) In General.--
            (1) Assessments.--Except as provided under subsections (a), 
        (b), (d), (f), and (g) of section 204, the Administrator shall 
        assess contributions to persons or affiliated groups within 
        Tiers I through VII in accordance with this section.
            (2) Revenues.--
                    (A) In general.--For purposes of this section, 
                revenues shall be determined in accordance with 
                generally accepted accounting principles, consistently 
                applied, using the amount reported as revenues in the 
                annual report filed with the Securities and Exchange 
                Commission in accordance with section 13(a)(2) of the 
                Securities Exchange Act of 1934 (15 U.S.C. 78m(a)(2)) 
                for the most recent fiscal year ending on or before 
                December 31, 2002. If the defendant participant does 
                not file reports with the Securities and Exchange 
                Commission, revenues shall be the amount that the 
                defendant participant would have reported as revenues 
                under the rules of the Securities and Exchange 
                Commission in the event that it had been required to 
                file.
                    (B) Insurance premiums.--Any portion of revenues of 
                a defendant participant that is derived from insurance 
                premiums shall not be used to calculate the 
                contribution of that defendant participant under this 
                subtitle.
                    (C) Privately held companies.--If the defendant 
                participant is not required to file an earnings report 
                with the Securities and Exchange Commission, revenues 
                shall be the amount that the defendant participant 
                would have reported as revenues in the event that it 
                had been required to file the report described under 
                subparagraph (A).
                    (D) Debtors.--Each debtor's revenues shall include 
                the revenues of the debtor and all of the direct or 
                indirect majority-owned subsidiaries of that debtor, 
                except that the pro forma revenues of a person that is 
                assigned to Subtier 2 of Tier I shall not be included 
                in calculating the revenues of any debtor that is a 
                direct or indirect majority owner of such Subtier 2 
                person.
    (b) Tier I Subtiers.--
            (1) In general.--Except as provided under subsections (a), 
        (b), (d), (f), and (g) of section 204, the Administrator shall 
        assign each debtor in Tier I to subtiers. Each debtor or shall 
        make contributions to the Fund as provided under this section.
            (2) Subtier 1.--
                    (A) In general.--All persons that are debtors with 
                prior asbestos expenditures of $1,000,000 or greater, 
                shall be assigned to Subtier 1.
                    (B) Assignment.--Each debtor assigned to Subtier 1 
                shall make annual payments based on a percentage of its 
                2002 revenues.
                    (C) Payment.--Each debtor assigned to Subtier 1 
                shall pay on an annual basis the following with respect 
                to the year of the establishment of the Fund:
                            (i) Years 1 through 5, 1.5005 percent of 
                        the debtor's 2002 revenues.
                            (ii) Years 6 through 8, 1.3504 percent of 
                        the debtor's 2002 revenues.
                            (iii) Years 9 through 11, 1.2154 percent of 
                        the debtor's 2002 revenues.
                            (iv) Years 12 through 14, 1.0938 percent of 
                        the debtor's 2002 revenues.
                            (v) Years 15 through 17, .9845 percent of 
                        the debtor's 2002 revenues.
                            (vi) Years 18 through 20, .8860 percent of 
                        the debtor's 2002 revenues.
                            (vii) Years 21 through 23, .7974 percent of 
                        the debtor's 2002 revenues.
                            (viii) Years 24 through 26, .7177 percent 
                        of the debtor's 2002 revenues.
                            (ix) Year 27, .1794 percent of the debtor's 
                        2002 revenues.
            (3) Subtier 2.--
                    (A) In general.--Notwithstanding paragraph (2), all 
                persons that are debtors that have no material 
                continuing business operations but hold cash or other 
                assets that have been allocated or earmarked for 
                asbestos settlements shall be assigned to Subtier 2.
                    (B) Assignment of assets.--Not later than 30 days 
                after the date of enactment of this Act, each person 
                assigned to Subtier 2 shall assign all of its assets to 
                the Fund.
            (4) Subtier 3.--
                    (A) In general.--Notwithstanding paragraph (2), all 
                persons that are debtors other than those included in 
                Subtier 2, which have no material continuing business 
                operations and no cash or other assets allocated or 
                earmarked for the settlement of any asbestos claim, 
                shall be assigned to Subtier 3.
                    (B) Assignment of unencumbered assets.--Not later 
                than 30 days after the date of enactment of this Act, 
                each person assigned to Subtier 3 shall contribute an 
                amount equal to 50 percent of its total unencumbered 
                assets.
                    (C) Calculation of unencumbered assets.--
                Unencumbered assets shall be calculated as the Subtier 
                3 person's total assets, excluding insurance related 
                assets, less--
                            (i) all allowable administrative expenses;
                            (ii) allowed priority claims under section 
                        507 of title 11, United States Code; and
                            (iii) allowed secured claims.
    (c) Tier II Subtiers.--
            (1) In general.--The Administrator shall assign each person 
        or affiliated group in Tier II to 1 of 5 subtiers, based on the 
        person's or affiliated group's revenues. Such subtiers shall 
        each contain as close to an equal number of total persons and 
        affiliated groups as possible, with--
                    (A) those persons or affiliated groups with the 
                highest revenues assigned to Subtier 1;
                    (B) those persons or affiliated groups with the 
                next highest revenues assigned to Subtier 2;
                    (C) those persons or affiliated groups with the 
                lowest revenues assigned to Subtier 5;
                    (D) those persons or affiliated groups with the 
                next lowest revenues assigned to Subtier 4; and
                    (E) those persons or affiliated groups remaining 
                assigned to Subtier 3.
            (2) Payment.--Each person or affiliated group within an 
        assigned subtier shall pay, on an annual basis, the following:
                    (A) Subtier 1: $25,000,000.
                    (B) Subtier 2: $22,500,000.
                    (C) Subtier 3: $20,000,000.
                    (D) Subtier 4: $17,500,000.
                    (E) Subtier 5: $15,000,000.
    (d) Tier III Subtiers.--
            (1) In general.--The Administrator shall assign each person 
        or affiliated group in Tier III to 1 of 5 subtiers, based on 
        the person's or affiliated group's revenues. Such subtiers 
        shall each contain as close to an equal number of total persons 
        and affiliated groups as possible, with--
                    (A) those persons or affiliated groups with the 
                highest revenues assigned to Subtier 1;
                    (B) those persons or affiliated groups with the 
                next highest revenues assigned to Subtier 2;
                    (C) those persons or affiliated groups with the 
                lowest revenues assigned to Subtier 5;
                    (D) those persons or affiliated groups with the 
                next lowest revenues assigned to Subtier 4; and
                    (E) those persons or affiliated groups remaining 
                assigned to Subtier 3.
            (2) Payment.--Each person or affiliated group within an 
        assigned subtier shall pay, on an annual basis, the following:
                    (A) Subtier 1: $15,000,000.
                    (B) Subtier 2: $12,500,000.
                    (C) Subtier 3: $10,000,000.
                    (D) Subtier 4: $7,500,000.
                    (E) Subtier 5: $5,000,000.
    (e) Tier IV Subtiers.--
            (1) In general.--The Administrator shall assign each person 
        or affiliated group in Tier IV to 1 of 4 subtiers, based on the 
        person's or affiliated group's revenues. Such subtiers shall 
        each contain as close to an equal number of total persons and 
        affiliated groups as possible, with those persons or affiliated 
        groups with the highest revenues in Subtier 1, those with the 
        lowest revenues in Subtier 4. Those persons or affiliated 
        groups with the highest revenues among those remaining will be 
        assigned to Subtier 2 and the rest in Subtier 3.
            (2) Payment.--Each person or affiliated group within an 
        assigned subtier shall pay, on an annual basis, the following:
                    (A) Subtier 1: $3,500,000.
                    (B) Subtier 2: $2,250,000.
                    (C) Subtier 3: $1,500,000.
                    (D) Subtier 4: $500,000.
    (f) Tier V Subtiers.--
            (1) In general.--The Administrator shall assign each person 
        or affiliated group in Tier V to 1 of 3 subtiers, based on the 
        person's or affiliated group's revenues. Such subtiers shall 
        each contain as close to an equal number of total persons and 
        affiliated groups as possible, with those persons or affiliated 
        groups with the highest revenues in Subtier 1, those with the 
        lowest revenues in Subtier 3, and those remaining in Subtier 2.
            (2) Payment.--Each person or affiliated group within an 
        assigned subtier shall pay, on an annual basis, the following:
                    (A) Subtier 1: $1,000,000.
                    (B) Subtier 2: $500,000.
                    (C) Subtier 3: $200,000.
    (g) Tier VI Subtiers.--
            (1) In general.--The Administrator shall assign each person 
        or affiliated group in Tier VI to 1 of 3 subtiers, based on the 
        person's or affiliated group's revenues. Such subtiers shall 
        each contain as close to an equal number of total persons and 
        affiliated groups as possible, with those persons or affiliated 
        groups with the highest revenues in Subtier 1, those with the 
        lowest revenues in Subtier 3, and those remaining in Subtier 2.
            (2) Payment.--Each person or affiliated group within an 
        assigned subtier shall pay, on an annual basis, the following:
                    (A) Subtier 1: $500,000.
                    (B) Subtier 2: $250,000.
                    (C) Subtier 3: $100,000.
    (h) Tier VII.--
            (1) In general.--Notwithstanding any assignment to Tiers 
        II, III, IV, V, and VI based on prior asbestos expenditures 
        under section 204(d), a person shall be assigned to Tier VII if 
        the person--
                    (A) is subject to asbestos claims brought under the 
                Federal Employers' Liability Act (45 U.S.C. 51 et seq.) 
                as a result of operations as a common carrier by 
                railroad; and
                    (B) have paid not less than $5,000,000 in 
                settlement, judgment, defense, or indemnity costs 
                relating to such claims.
            (2) Additional amount.--The contribution requirement for 
        persons assigned to Tier VII shall be in addition to any 
        applicable contribution requirement that such person may be 
        assessed under Tiers II through VI.
            (3) Subtier 1.--The Administrator shall assign each person 
        or affiliated group in Tier VII with revenues of not less than 
        $5,000,000,000 to Subtier 1 and shall require each such person 
        or affiliated group to make annual payments of $10,000,000 into 
        the Fund.
            (4) Subtier 2.--The Administrator shall assign each person 
        or affiliated group in Tier VII with revenues of less than 
        $5,000,000,000, but not less than $3,000,000,000 to Subtier 2, 
        and shall require each such person or affiliated group to make 
        annual payments of $5,000,000 into the Fund.
            (5) Subtier 3.--The Administrator shall assign each person 
        or affiliated group in Tier VII with revenues of less than 
        $3,000,000,000, but not less than $500,000,000 to Subtier 3, 
        and shall require each such person or affiliated group to make 
        annual payments of $500,000 into the Fund.
            (6) Joint venture revenues and liability.--
                    (A) Revenues.--For purposes of this subsection, the 
                revenues of a joint venture shall be included on a pro 
                rata basis reflecting relative joint ownership to 
                calculate the revenues of the parents of that joint 
                venture. The joint venture shall not be responsible for 
                a contribution amount under this subsection.
                    (B) Liability.--For purposes of this subsection, 
                the liability under the Act of April 22, 1908 (45 
                U.S.C. 51 et seq.), commonly known as the Federal 
                Employers' Liability Act, shall be attributed to the 
                parent owners of the joint venture on a pro rata basis, 
                reflecting their relative share of ownership. The joint 
                venture shall not be responsible for a contribution 
                amount under this provision.

SEC. 204. ASSESSMENT ADMINISTRATION.

    (a) Reduction Adjustments.--The Administrator shall assess 
contributions based on amounts provided under this subtitle for each 
person or affiliated group within Tiers II, III, IV, V, VI, and VII for 
the first 5 years of the operation of the Fund. Beginning in year 6, 
and thereafter, the Administrator shall reduce the contribution amount 
for each defendant participant in each of these tiers in proportion to 
the reductions in the schedule under subsection (h)(2).
    (b) Small Business Exemption.--A person or affiliated group that is 
a small business concern (as defined under section 3 of the Small 
Business Act (15 U.S.C. 632)), on December 31, 2002, is exempt from any 
contribution requirement under this subtitle.
    (c) Procedures.--The Administrator shall prescribe procedures on 
how contributions assessed under this subtitle are to be paid.
    (d) Exceptions.--
            (1) In general.--Under expedited procedures established by 
        the Administrator, a defendant participant may seek adjustment 
        of the amount of its contribution based on severe financial 
        hardship or demonstrated inequity. The Administrator may 
        determine whether to grant an adjustment and the size of any 
        such adjustment, in accordance with this subsection. Such 
        determinations shall not prejudice the integrity of the Fund 
        and shall not be subject to judicial review.
            (2) Financial hardship adjustments.--
                    (A) In general.--A defendant may apply for an 
                adjustment based on financial hardship at any time 
                during the life of the Fund and may qualify for such 
                adjustment by demonstrating that the amount of its 
                contribution under the statutory allocation would 
                constitute a severe financial hardship.
                    (B) Term.--A hardship adjustment under this 
                subsection shall have a term of 3 years.
                    (C) Renewal.--A defendant may renew its hardship 
                adjustment by demonstrating that it remains justified.
                    (D) Limitation.--The Administrator may not grant 
                hardship adjustments under this subsection in any year 
                that exceed, in the aggregate, 3 percent of the total 
                annual contributions required of all defendant 
                participants.
            (3) Inequity adjustments.--
                    (A) In general.--A defendant may qualify for an 
                adjustment based on inequity by demonstrating that the 
                amount of its contribution under the statutory 
                allocation is exceptionally inequitable when measured 
                against the amount of the likely cost to the defendant 
                of its future liability in the tort system in the 
                absence of the Fund.
                    (B) Term.--Subject to the annual availability of 
                funds in the Orphan Share Reserve Account established 
                under section 223(e), an inequity adjustment granted by 
                the Administrator under this subsection shall remain in 
                effect for the life of the Fund.
                    (C) Limitation.--The Administrator may grant 
                inequity adjustments only to the extent that--
                            (i) the financial condition of the Fund is 
                        sufficient to accommodate such adjustments;
                            (ii) the Orphan Share Reserve Account is 
                        sufficient to cover such adjustments for that 
                        year; and
                            (iii) such adjustments do not exceed 2 
                        percent of the total annual contributions 
                        required of all defendant participants.
            (4) Advisory panels.--
                    (A) Appointment.--The Administrator shall appoint a 
                Financial Hardship Adjustment Panel and an Inequity 
                Adjustment Panel to advise the Administrator in 
                carrying out this subsection.
                    (B) Membership.--The membership of the panels 
                appointed under subparagraph (A) may overlap.
                    (C) Coordination.--The panels appointed under 
                subparagraph (A) shall coordinate their deliberations 
                and recommendations.
    (e) Limitation on Liability.--The liability of each defendant 
participant to contribute to the Fund shall be limited to the payment 
obligations under this subtitle, and, except as provided in subsection 
(f), no defendant participant shall have any liability for the payment 
obligations of any other defendant participant.
    (f) Consolidation of Contributions.--
            (1) In general.--For purposes of determining the 
        contribution levels of defendant participants, any affiliated 
        group including 1 or more defendant participants may 
        irrevocably elect, as part of the submission to be made under 
        subsection (i), to report on a consolidated basis all of the 
        information necessary to determine the contribution level under 
        this subtitle and contribute to the Fund on a consolidated 
        basis.
            (2) Election.--If an affiliated group elects consolidation 
        as provided in this subsection--
                    (A) for purposes of this Act other than this 
                subsection, the affiliated group shall be treated as if 
                it were a single participant, including without 
                limitation with respect to the assessment of a single 
                annual contribution under this subtitle for the entire 
                affiliated group;
                    (B) the ultimate parent of the affiliated group 
                shall prepare and submit the submission to be made 
                under subsection (i), on behalf of the entire 
                affiliated group and shall be solely liable, as between 
                the Administrator and the affiliated group only, for 
                the payment of the annual contribution assessed against 
                the affiliated group, except that, if the ultimate 
                parent does not pay when due any contribution for the 
                affiliated group, the Administrator shall have the 
                right to seek payment of all or any portion of the 
                entire amount due from any member of the affiliated 
                group;
                    (C) all members of the affiliated group shall be 
                identified in the submission under subsection (i) and 
                shall certify compliance with this subsection and the 
Administrator's regulations implementing this subsection; and
                    (D) the obligations under this subtitle shall not 
                change even if, after the date of enactment of this 
                Act, the beneficial ownership interest between any 
                members of the affiliated group shall change.
    (g) Determination of Prior Asbestos Expenditures.--
            (1) In general.--For purposes of determining a defendant 
        participant's prior asbestos expenditure, the Administrator 
        shall prescribe such rules as may be necessary or appropriate 
        to assure that payments by indemnitors before December 31, 
        2002, shall be counted as part of the indemnitor's prior 
        asbestos expenditure, rather than the indemnitee's prior 
        asbestos expenditure, in accordance with this subsection.
            (2) Indemnifiable costs.--If an indemnitor has paid or 
        reimbursed to an indemnitee any indemnifiable cost or otherwise 
        made a payment on behalf of or for the benefit of an indemnitee 
        to a third party for an indemnifiable cost before December 31, 
        2002, the amount of such indemnifiable cost shall be solely for 
        the account of the indemnitor for purposes under this Act.
            (3) Insurance payments.--When computing the prior asbestos 
        expenditure with respect to an asbestos claim, any amount paid 
        or reimbursed by insurance shall be solely for the account of 
        the indemnitor, even if the indemnitor would have no direct 
        right to the benefit of the insurance, if--
                    (A) such insurance has been paid or reimbursed to 
                the indemnitor or the indemnitee, or paid on behalf of 
                or for the benefit of the indemnitee, any indemnifiable 
                cost related to the asbestos claim; and
                    (B) the indemnitor has either, with respect to such 
                asbestos claim or any similar asbestos claim, paid or 
                reimbursed to its indemnitee any indemnifiable cost or 
                paid to any third party on behalf of or for the benefit 
                of the indemnitee any indemnifiable cost.
    (h) Minimum Contributions.--Minimum aggregate contributions of 
defendant participants to the Fund in any calendar year shall be as 
follows:
            (1) For each of the first 5 years of the Fund, the 
        aggregate contributions of defendant participants to the fund 
        shall be at least $2,500,000,000.
            (2) After the 5th year, the minimum aggregate contribution 
        shall be reduced as follows:
                    (A) For years 6 through 8, $2,250,000,000.
                    (B) For years 9 through 11, $2,000,000,000.
                    (C) For years 12 through 14, $1,750,000,000.
                    (D) For years 15 through 17, $1,500,000,000.
                    (E) For years 18 through 20, $1,250,000,000.
                    (F) For years 21 through 26, $1,000,000,000.
                    (G) For year 27, $250,000,000.
    (i) Procedures To Determine Fund Contribution Assessments.--
            (1) Notice to participants.--Not later than 60 days after 
        the initial appointment of the Administrator, the Administrator 
        shall--
                    (A) directly notify all reasonably identifiable 
                defendant participants of the requirement to submit 
                information necessary to calculate the amount of any 
                required contribution to the Fund; and
                    (B) publish in the Federal Register a notice 
                requiring any person who may be a defendant participant 
                (as determined by criteria outlined in the notice) to 
                submit such information.
            (2) Response required.--
                    (A) In general.--Any person who receives notice 
                under paragraph (1)(A), and any other person meeting 
                the criteria specified in the notice published under 
                paragraph (1)(B), shall respond by providing the 
                Administrator with all the information requested in the 
                notice at the earlier of--
                            (i) 30 days after the receipt of direct 
                        notice; or
                            (ii) 30 days after the publication of 
                        notice in the Federal Register.
                    (B) Certification.--The response submitted under 
                subparagraph (A) shall be signed by a responsible 
                corporate officer, general partner, proprietor, or 
                individual of similar authority, who shall certify 
                under penalty of law the completeness and accuracy of 
                the information submitted.
            (3) Notice of initial determination.--
                    (A) In general.--Not later than 60 days after 
                receiving a response under paragraph (2), the 
                Administrator shall send the participant a notice of 
                initial determination assessing a contribution to the 
                Fund, which shall be based on the information received 
                from the participant in response to the Administrator's 
                request for information.
                    (B) No response; incomplete response.--If no 
                response is received from the participant, or if the 
                response is incomplete, the initial determination 
                assessing a contribution from the participant shall be 
                based on the best information available to the 
                Administrator.
            (4) Confidentiality.--Any person may designate any 
        information submitted under this subsection as confidential 
        commercial or financial information for purposes of section 552 
        of title 5, United States Code (commonly referred to as the 
        Freedom of Information Act). The Administrator shall adopt 
        procedures for designating such information as confidential.
            (5) New information.--
                    (A) Existing participant.--The Administrator shall 
                adopt procedures for revising initial assessments based 
                on new information received after the initial 
                assessments are calculated.
                    (B) Additional participant.--If the Administrator, 
                at any time, receives information that an additional 
                person may qualify as a participant, the Administrator 
                shall require such person to submit information 
                necessary to determine whether an initial determination 
                assessing a contribution from that person should be 
                issued, in accordance with the requirements of this 
                subsection.
            (6) Payment schedule.--Any initial determination issued 
        under this subsection may allow for periodic payments, if the 
        full annual amount assessed is paid each year. Each participant 
        shall pay its contribution to the Fund in the amount specified 
        at the initial determination of assessment from the 
        Administrator, according to the schedule specified in the 
        initial determination.
            (7) Subpoenas.--The Administrator may request the Attorney 
        General to subpoena persons to compel testimony, records, and 
        other information relevant to its responsibilities under this 
        section. The Attorney General may enforce such subpoena in 
        appropriate proceedings in the United States district court for 
        the district in which the person to whom the subpoena was 
        addressed resides, was served, or transacts business.
            (8) Rehearing.--A participant has a right to obtain 
        rehearing of the Administrator's initial determination under 
        section 202.

                Subtitle B--Asbestos Insurers Commission

SEC. 211. ESTABLISHMENT OF ASBESTOS INSURERS COMMISSION.

    (a) Establishment.--There is established the Asbestos Insurers 
Commission (referred to in this subtitle as the ``Commission'') to 
carry out the duties described in section 212.
    (b) Membership.--
            (1) Appointment.--The Commission shall be composed of 5 
        members who shall be appointed by the President, after 
        consultation with--
                    (A) the majority leader of the Senate;
                    (B) the minority leader of the Senate;
                    (C) the Speaker of the House of Representatives; 
                and
                    (D) the minority leader of the House of 
                Representatives.
            (2) Qualifications.--
                    (A) Expertise.--Members of the Commission shall 
                have sufficient expertise to fulfill their 
                responsibilities under this subtitle.
                    (B) Conflict of interest.--No member of the 
                Commission appointed under paragraph (1) may be an 
                employee, former employee, or shareholder of any 
                insurer participant, or an immediate family member of 
                any such individual.
                    (C) Federal employment.--A member of the Commission 
                may not be an officer or employee of the Federal 
                Government, except by reason of membership on the 
                Commission.
            (3) Date.--The appointments of the members of the 
        Commission shall be made not later than 60 days after the date 
        of enactment of this Act.
            (4) Period of appointment.--Members shall be appointed for 
        the life of the Commission.
            (5) Vacancies.--Any vacancy in the Commission shall be 
        filled in the same manner as the original appointment.
            (6) Chairman.--The Commission shall select a Chairman from 
        among its members.
    (c) Meetings.--
            (1) Initial meeting.--Not later than 30 days after the date 
        on which all members of the Commission have been appointed, the 
        Commission shall hold its first meeting.
            (2) Subsequent meetings.--The Commission shall meet at the 
        call of the Chairman as necessary to accomplish the duties 
        under section 212.
            (3) Quorum.--No business may be conducted or hearings held 
        without the participation of all of the members of the 
        Commission.

SEC. 212. DUTIES OF ASBESTOS INSURERS COMMISSION.

    (a) Determination of Insurer Liability for Asbestos Injuries.--
            (1) In general.--The Commission shall determine the amount 
        that each insurer participant will be required to pay into the 
        Fund to satisfy their contractual obligation to compensate 
        claimants for asbestos injuries.
            (2) Allocation agreement.--
                    (A) In general.--Not later than 30 days after the 
                Commission issues its initial determination, the 
                insurer participants may submit an allocation 
                agreement, approved by all of the insurer participants, 
                to--
                            (i) the Commission;
                            (ii) the Committee on the Judiciary of the 
                        Senate; and
                            (iii) the Committee on the Judiciary of the 
                        House of Representatives.
                    (B) Certification.--The authority of the Commission 
                under this subtitle shall terminate on the day after 
                the Commission certifies that an allocation agreement 
                submitted under subparagraph (A) meets the requirements 
                of this subtitle.
            (3) General provisions.--
                    (A) Aggregate contribution level.--The total 
                contribution required of all insurer participants over 
                the life of the Fund shall be equal to $45,000,000,000.
                    (B) Declining payments.--Since the payments from 
                the Fund are expected to decline over time, the annual 
                contributions from insurer participants is also 
                expected to decline over time. The proportionate share 
                of each insurer participant's contributions to the Fund 
                will remain the same throughout the life of the Fund.
                    (C) Several liability.--Each insurer participant's 
                obligation to contribute to the Fund is several. There 
                is no joint liability and the future insolvency of any 
                insurer participant shall not affect the assessment 
                assigned to any other insurer participant.
            (4) Assessment criteria.--
                    (A) Mandatory participants.--Insurers that have 
                paid, or been assessed by a legal judgment or 
                settlement, at least $1,000,000 in defense and 
                indemnity costs before the date of enactment of this 
                Act in response to claims for compensation for asbestos 
                injuries shall be mandatory participants in the Fund. 
                Other insurers shall be exempt from mandatory payments.
                    (B) Participant tiers.--Contributions shall be 
                determined by assigning mandatory insurer participants 
                into tiers, which shall be determined and defined based 
                on--
                            (i) net written premiums received from 
                        policies covering asbestos that were in force 
                        at any time during the period beginning on 
                        January 1, 1940 and ending on December 31, 
                        1986;
                            (ii) net paid losses for asbestos injuries 
                        compared to all such losses for the insurance 
                        industry;
                            (iii) net carried reserve level for 
                        asbestos claims on the most recent financial 
                        statement of the insurer participant; and
                            (iv) future liability.
                    (C) Payment schedule.--Any final determination of 
                assessment issued under subsection (b) may allow for 
                periodic payments, provided that the full annual amount 
                assessed is paid each year. Each insurer participant 
                shall pay its contribution to the Fund in the amount 
                specified in the final determination of assessment from 
                the Commission, according to the schedule specified in 
                the final determination.
    (b) Procedure.--
            (1) Notice to participants.--Not later than 30 days after 
        the initial meeting of the Commission, the Commission shall--
                    (A) directly notify all reasonably identifiable 
                insurer participants of the requirement to submit 
                information necessary to calculate the amount of any 
                required contribution to the Fund; and
                    (B) publish in the Federal Register a notice 
                requiring any person who may be an insurer participant 
                (as determined by criteria outlined in the notice) to 
                submit such information.
            (2) Response required.--
                    (A) In general.--Any person who receives notice 
                under paragraph (1)(A), and any other person meeting 
                the criteria specified in the notice published under 
                paragraph (1)(B), shall respond by providing the 
                Commission with all the information requested in the 
                notice at the earlier of--
                            (i) 30 days after the receipt of direct 
                        notice; or
                            (ii) 30 days after the publication of 
                        notice in the Federal Register.
                    (B) Certification.--The response submitted under 
                subparagraph (A) shall be signed by a responsible 
                corporate officer, general partner, proprietor, or 
                individual of similar authority, who shall certify 
                under penalty of law the completeness and accuracy of 
                the information submitted.
            (3) Notice of initial determination.--
                    (A) In general.--Not later than 120 days after the 
                initial meeting of the Commission, the Commission shall 
                send each insurer participant a notice of initial 
                determination assessing a contribution to the Fund, 
                which shall be based on the information received from 
                the participant in response to the Commission's request 
                for information.
                    (B) No response; incomplete response.--If no 
                response is received from an insurer participant, or if 
                the response is incomplete, the initial determination 
                assessing a contribution from the insurer participant 
                shall be based on the best information available to the 
                Commission.
            (4) Review period.--
                    (A) Comments from insurer participants.--Not later 
                than 30 days after receiving a notice of initial 
                determination from the Commission, an insurer 
                participant may provide the Commission with additional 
                information to support limited adjustments to the 
                assessment received to reflect exceptional 
                circumstances.
                    (B) Additional participants.--If, before the final 
                determination of the Commission, the Commission 
receives information that an additional person may qualify as an 
insurer participant, the Commission shall require such person to submit 
information necessary to determine whether a contribution from that 
person should be assessed, in accordance with the requirements of this 
subsection.
                    (C) Revision procedures.--The Commission shall 
                adopt procedures for revising initial assessments based 
                on information received under subparagraphs (A) and 
                (B). Any adjustments to assessment levels shall comply 
                with the criteria under subsection (a).
            (5) Subpoenas.--The Commission may request the Attorney 
        General to subpoena persons to compel testimony, records, and 
        other information relevant to its responsibilities under this 
        section. The Attorney General may enforce such subpoena in 
        appropriate proceedings in the United States district court for 
        the district in which the person to whom the subpoena was 
        addressed resides, was served, or transacts business.
            (6) Notice of final determination.--
                    (A) In general.--Not later than 60 days after the 
                notice of initial determination is sent to the insurer 
                participants, the Commission shall send each insurer 
                participant a notice of final determination.
                    (B) Judicial review.--A participant has a right to 
                obtain judicial review of the Commission's final 
                determination under title III.
    (c) Determination of Relative Liability for Asbestos Injuries.--The 
Commission shall determine the percentage of the total liability of 
each participant identified under subsection (a).
    (d) Report.--
            (1) Recipients.--Not later than 1 year after the date of 
        enactment of this Act, the Commission shall submit a report, 
        containing the information described under paragraph (2), to--
                    (A) the Committee on the Judiciary of the Senate;
                    (B) the Committee on the Judiciary of the House of 
                Representatives; and
                    (C) the Court of Asbestos Claims.
            (2) Contents.--The report under paragraph (1) shall contain 
        the amount that each insurer participant is required to 
        contribute to the Fund, including the payment schedule for such 
        contributions.

SEC. 213. POWERS OF ASBESTOS INSURERS COMMISSION.

    (a) Hearings.--The Commission may hold such hearings, sit and act 
at such times and places, take such testimony, and receive such 
evidence as the Commission considers advisable to carry out this Act.
    (b) Information From Federal Agencies.--The Commission may secure 
directly from any Federal department or agency such information as the 
Commission considers necessary to carry out this Act. Upon request of 
the Chairman of the Commission, the head of such department or agency 
shall furnish such information to the Commission.
    (c) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as other 
departments and agencies of the Federal Government.
    (d) Gifts.--The Commission may not accept, use, or dispose of gifts 
or donations of services or property.

SEC. 214. PERSONNEL MATTERS.

    (a) Compensation of Members.--Each member of the Commission shall 
be compensated at a rate equal to the daily equivalent of the annual 
rate of basic pay prescribed for level IV of the Executive Schedule 
under section 5315 of title 5, United States Code, for each day 
(including travel time) during which such member is engaged in the 
performance of the duties of the Commission.
    (b) Travel Expenses.--The members of the Commission shall be 
allowed travel expenses, including per diem in lieu of subsistence, at 
rates authorized for employees of agencies under subchapter I of 
chapter 57 of title 5, United States Code, while away from their homes 
or regular places of business in the performance of services for the 
Commission.
    (c) Staff.--
            (1) In general.--The Chairman of the Commission may, 
        without regard to the civil service laws and regulations, 
        appoint and terminate an executive director and such other 
        additional personnel as may be necessary to enable the 
        Commission to perform its duties. The employment of an 
        executive director shall be subject to confirmation by the 
        Commission.
            (2) Compensation.--The Chairman of the Commission may fix 
        the compensation of the executive director and other personnel 
        without regard to chapter 51 and subchapter III of chapter 53 
        of title 5, United States Code, relating to classification of 
        positions and General Schedule pay rates, except that the rate 
        of pay for the executive director and other personnel may not 
        exceed the rate payable for level V of the Executive Schedule 
        under section 5316 of such title.
    (d) Detail of Government Employees.--Any Federal Government 
employee may be detailed to the Commission without reimbursement, and 
such detail shall be without interruption or loss of civil service 
status or privilege.
    (e) Procurement of Temporary and Intermittent Services.--The 
Chairman of the Commission may procure temporary and intermittent 
services under section 3109(b) of title 5, United States Code, at rates 
for individuals which do not exceed the daily equivalent of the annual 
rate of basic pay prescribed for level V of the Executive Schedule 
under section 5316 of such title.

SEC. 215. NONAPPLICATION OF FOIA AND CONFIDENTIALITY OF INFORMATION.

    (a) In General.--Section 552 of title 5, United States Code 
(commonly referred to as the Freedom of Information Act) shall not 
apply to the Commission.
    (b) Confidentiality of Information.--All information submitted to 
the Commission shall be privileged and confidential information and 
shall not be disclosed to any person outside the Commission, unless 
such privilege is knowingly and intentionally waived by the person 
submitting the information. An appeal of an assessment to the Fund 
under this subtitle shall be deemed a waiver for the purposes of this 
subsection unless the appellee participant makes a motion for an in 
camera review of its appeal.

SEC. 216. TERMINATION OF ASBESTOS INSURERS COMMISSION.

    The Commission shall terminate 60 days after the date on which the 
Commission submits its report under section 212(c).

SEC. 217. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to the 
Commission such sums as may be necessary for fiscal year 2004 to carry 
out the provisions of this subtitle.
    (b) Availability.--Any sums appropriated under the authorization 
contained in this section shall remain available, without fiscal year 
limitation, until expended.

        Subtitle C--Office of Asbestos Injury Claims Resolution

SEC. 221. ESTABLISHMENT OF THE OFFICE OF ASBESTOS INJURY CLAIMS 
              RESOLUTION.

    (a) In General.--There is established the Office of Asbestos Injury 
Claims Resolution.
    (b) Responsibilities.--The Office shall be responsible for--
            (1) administering the Fund;
            (2) providing payments from the Fund to asbestos claimants 
        who are determined to be eligible for awards; and
            (3) carrying out other applicable provisions of this title 
        and other activities determined appropriate by the 
        Administrator.
    (c) Administrator.--
            (1) Appointment.--The Office shall be headed by an 
        Administrator who shall be appointed by the President, by and 
        with the advice and consent of the Senate.
            (2) Term; removal.--The Administrator shall serve for a 
        term of 5 years and may be removable by the President only for 
        good cause.

SEC. 222. POWERS OF THE ADMINISTRATOR AND MANAGEMENT OF THE FUND.

    (a) General Powers.--The Administrator shall have the following 
general powers:
            (1) To promulgate such regulations as the Administrator 
        determines to be necessary to implement the provisions of this 
        subtitle.
            (2) To appoint employees or contract for the services of 
        other personnel as may be necessary and appropriate to carry 
        out the provisions of this subtitle, including entering into 
        cooperative agreements with other Federal agencies.
            (3) To make such expenditures as may be necessary and 
        appropriate in the administration of this subtitle.
            (4) To take all actions necessary to prudently manage the 
        Fund, including--
                    (A) administering, in a fiduciary capacity, the 
                assets of the Fund for the exclusive purpose of 
                providing benefits to asbestos claimants and their 
                beneficiaries;
                    (B) defraying the reasonable expenses of 
                administering the Fund;
                    (C) investing the assets of the Fund in accordance 
                with subsection (b)(2); and
                    (D) retaining advisers, managers, and custodians 
                who possess the necessary facilities and expertise to 
                provide for the skilled and prudent management of the 
                Fund, to assist in the development, implementation and 
                maintenance of the Fund's investment policies and 
                investment activities, and to provide for the 
                safekeeping and delivery of the Fund's assets.
            (5) To have all other powers incidental, necessary, or 
        appropriate to carrying out the functions of the Office.
    (b) Requirements Relating to Fund Assets.--
            (1) In general.--Amounts in the Fund shall be held for the 
        exclusive purpose of providing benefits to asbestos claimants 
        and their beneficiaries and to otherwise defray the reasonable 
        expenses of administering the Fund.
            (2) Investments.--
                    (A) In general.--Amounts in the Fund shall be 
                administered and invested with the care, skill, 
                prudence, and diligence, under the circumstances 
                prevailing at the time of such investment, that a 
                prudent person acting in a like capacity and manner 
                would use.
                    (B) Strategy.--The Administrator shall invest 
                amounts in the Fund in a manner that enables the Fund 
                to make current and future distributions to or for the 
                benefit of asbestos claimants. In pursuing an 
                investment strategy under this subparagraph, the 
                Administrator shall consider, to the extent relevant to 
                an investment decision or action--
                            (i) the size of the Fund;
                            (ii) the nature and estimated duration of 
                        the Fund;
                            (iii) the liquidity and distribution 
                        requirements of the Fund;
                            (iv) general economic conditions at the 
                        time of the investment;
                            (v) the possible effect of inflation or 
                        deflation on Fund assets;
                            (vi) the role that each investment or 
                        course of action plays with respect to the 
                        overall assets of the Fund;
                            (vii) the expected amount to be earned 
                        (including both income and appreciation of 
                        capital) through investment of amounts in the 
                        Fund; and
                            (viii) the needs of asbestos claimants for 
                        current and future distributions authorized 
                        under this Act.
    (c) Violations of Environmental and Occupational Health and Safety 
Requirements.--
            (1) Asbestos in commerce.--If the Administrator receives 
        information concerning conduct occurring after the date of 
        enactment of this Act that may have been a violation of 
        standards issued by the Environmental Protection Agency under 
        section 6(a) of the Toxic Substances Control Act (15 U.S.C. 
2605(a)), relating to the manufacture, importation, processing and 
distribution in commerce of asbestos-containing products, the 
Administrator may refer the matter to the Administrator of the 
Environmental Protection Agency and the United States Attorney for 
possible civil or criminal penalties under section 16(a) of the Toxic 
Substances Control Act (15 U.S.C. 2615(a)).
            (2) Asbestos as air pollutant.--If the Administrator 
        receives information concerning conduct occurring after the 
        date of enactment of this Act that may have been a violation of 
        standards issued by the Environmental Protection Agency under 
        section 112(d) of the Clean Air Act (42 U.S.C. 7412(d)), 
        relating to asbestos as a hazardous air pollutant, the 
        Administrator may refer the matter to the Administrator of the 
        Environmental Protection Agency and the United States Attorney 
        for possible criminal and civil penalties under section 113 of 
        the Clean Air Act (42 U.S.C. 7413).
            (3) Occupational exposure.--If the Administrator receives 
        information concerning conduct occurring after the date of 
        enactment of this Act that may have been a violation of 
        standards issued by the Occupational Safety and Health 
        Administration under the Occupational Safety and Health Act of 
        1970 (29 U.S.C. 651 et seq.), relating to occupational exposure 
        to asbestos, the Administrator may refer the matter to the 
        United States Attorney for possible criminal prosecution under 
        section 5(a) of such Act (29 U.S.C. 654(a)), and to the 
        Secretary of Labor for possible civil penalties under section 
        17 (a)-(d) of such Act (29 U.S.C. 666 (a)-(d)).

SEC. 223. ASBESTOS INJURY CLAIMS RESOLUTION FUND.

    (a) Establishment.--There is established in the Office of Asbestos 
Injury Claims Resolution, the Asbestos Injury Claims Resolution Fund, 
which shall be available to pay--
            (1) claims for awards for an eligible disease or condition 
        determined under title I;
            (2) claims for reimbursement for medical monitoring 
        determined under title I;
            (3) principal and interest on borrowings under subsection 
        (c); and
            (4) administrative expenses to carry out this subtitle.
    (b) Limitations on Contributions by Mandatory Participants.--The 
aggregate contributions of all mandatory participants to the Fund may 
not exceed $5,000,000,000 in any calendar year.
    (c) Borrowing Authority.--The Administrator is authorized to 
borrow, in any calendar year, an amount not to exceed anticipated 
contributions to the Fund in the following calendar year for purposes 
of carrying out the obligations of the Fund under this Act.
    (d) Guaranteed Payment Account.--
            (1) In general.--The Administrator shall establish a 
        guaranteed payment account within the Fund to insure payment of 
        the total amount of contributions required to be paid into the 
        Fund by all participants.
            (2) Surcharge.--The Administrator shall impose, on each 
        participant required to pay contributions into the Fund under 
        this Act, in addition to the amount of such contributions, a 
        reasonable surcharge to be paid into the guaranteed payment 
        account in an amount that the Administrator determines 
        appropriate to insure against the risk of nonpayment of 
        required contributions by any such participant.
            (3) Procedure.--The surcharge required under this section 
        shall be paid in such manner, at such times, and in accordance 
        with such procedures as the Administrator determines 
        appropriate.
            (4) Uses of guaranteed payment account.--Amounts in the 
        guaranteed payment account shall be used as necessary to pay 
        claims from the Fund, to the extent that amounts in the Fund 
        are insufficient to pay such claims due to nonpayment by any 
        participant.
            (5) Enforcement.--The enforcement of the payment of a 
        surcharge under this subsection may be enforced in the same 
        manner and to the same extent as the enforcement of a 
        contribution under section 224.
    (e) Orphan Share Reserve Account.--
            (1) In general.--To the extent the total amount of 
        contributions of the participants in any given year exceed the 
        maximum aggregate contribution under section 204(h), the excess 
        monies shall be placed in an orphan share reserve account 
        established within the Fund by the Administrator.
            (2) Use of account monies.--Monies from the orphan share 
        reserve account shall be preserved and administered like the 
        remainder of the Fund, but shall be reserved and may be used 
        only--
                    (A) in the event that a petition for relief is 
                filed and not withdrawn for the participant under title 
                11, United States Code, after the date of enactment of 
                this Act and the participant cannot meet its 
                obligations under this subtitle; and
                    (B) to the extent the Administrator grants a 
                participant relief for severe financial hardship or 
                demonstrated inequity under this section.

SEC. 224. ENFORCEMENT OF CONTRIBUTIONS.

    (a) Default.--If any participant fails to make any payment in the 
amount and according to the schedule specified in a determination of 
assessment, after demand and 30 days opportunity to cure the default, 
there shall be a lien in favor of the United States for the amount of 
the delinquent payment (including interest) upon all property and 
rights to property, whether real or personal, belonging to such 
participant.
    (b) Bankruptcy.--In the case of a bankruptcy or insolvency 
proceeding, the lien imposed under subsection (a) shall be treated in 
the same manner as a lien for taxes due and owing to the United States 
for purposes of the provisions of title 11, United States Code, or 
section 3713(a) of title 31, United States Code.
    (c) Civil Action.--
            (1) In general.--In any case in which there has been a 
        refusal or neglect to pay the liability imposed by the final 
        determination under section 202 or 212, the Administrator may 
        bring a civil action in the Federal district court for the 
        District of Columbia to--
                    (A) enforce such liability and the lien of the 
                United States under this section; or
                    (B) subject any property, of whatever nature, of 
                the participant, or in which the participant has any 
                right, title, or interest, to the payment of such 
                liability.
            (2) Defense limitation.--In any proceeding under this 
        subsection, the participant shall be barred from bringing any 
        challenge to the assessment if such challenge could have been 
        made during the review period under section 202(b)(4) or 
        212(b)(4), or a judicial review proceeding under title III.

SEC. 225. ADDITIONAL CONTRIBUTING PARTICIPANTS.

    (a) Definition.--In this section, the term ``additional 
contributing participant'' means any defendant in an asbestos claim 
that is not a mandatory participant under subtitle A and is likely to 
avoid future civil liability as a result of this Act.
    (b) Assessment.--In addition to contributions assessed under 
subtitle A, the Administrator may assess additional contributing 
participants for contributions to the Fund. Any additional contributing 
participant assessed under this section shall be treated as a defendant 
participant for purposes of procedures and appeals under this Act.
    (c) Assessment Limitations.--The Administrator may assess under 
subsection (b), over the life of the Fund, an amount not to exceed 
$14,000,000,000 from all additional contributing participants.

                       TITLE III--JUDICIAL REVIEW

SEC. 301. JUDICIAL REVIEW OF DECISIONS OF THE ASBESTOS COURT.

    (a) Exclusive Jurisdiction.--The United States Court of Appeals for 
the District of Columbia shall have exclusive jurisdiction over any 
action to review a final decision of the Asbestos Court.
    (b) Procedure for Appeals.--
            (1) Period for filing appeal.--An appeal under this section 
        shall be filed not later than 30 days after the issuance of a 
        final decision by the Asbestos Court.
            (2) Transmittal of record.--Upon the filing of an appeal, a 
        copy of the filing shall be transmitted by the clerk of the 
        court to the Asbestos Court, and the Asbestos Court shall file 
        in the court the record in the proceeding, as provided in 
        section 2112 of title 28, United States Code.
            (3) Standard of review.--
                    (A) In general.--The court shall uphold the 
                decision of the Asbestos Court if the court determines, 
                upon review of the record as a whole, that the decision 
                is not arbitrary and capricious.
                    (B) Effect of determination.--If the court 
                determines that a final decision of the Asbestos Court 
                is arbitrary and capricious, the court shall remand the 
                case to the Asbestos Court.
            (4) Finality of determination.--The decision of the United 
        States Court of Appeals for the District of Columbia shall be 
        final, except that the same shall be subject to review by the 
        Supreme Court of the United States, as provided in section 1254 
        of title 28, United States Code.

SEC. 302. JUDICIAL REVIEW OF FINAL DETERMINATIONS OF THE ADMINISTRATOR 
              AND OF THE ASBESTOS INSURERS COMMISSION.

    (a) Exclusive Jurisdiction.--The United States District Court for 
the District of Columbia shall have exclusive jurisdiction over any 
action to review a final determination by the Administrator or the 
Asbestos Insurers Commission regarding the assessment of a contribution 
to the Fund from a participant.
    (b) Procedure for Appeal.--
            (1) Period for filing appeal.--An appeal under this section 
        shall be filed not later than 30 days after the issuance of a 
        final determination by the Administrator or the Commission.
            (2) Transmittal of record.--Upon the filing of an appeal, a 
        copy of the filing shall be transmitted by the clerk of the 
        court to the Administrator or the Commission.
    (c) Standard of Review.--
            (1) In general.--The United States District Court for the 
        District of Columbia shall uphold the final determination of 
        the Administrator or the Commission with respect to the 
        assessment of a contribution to the Fund from a participant if 
        such determination is not arbitrary and capricious.
            (2) Effect of determination.--If the court determines that 
        a final determination with respect to the amount of a 
        contribution to the Fund by a participant may not be upheld, 
        the court shall remand the decision to the Administrator or the 
        Commission, with instructions to modify the final 
        determination.
            (3) No stays.--The court may not issue a stay of payment 
        into the Fund pending its final judgment.
            (4) Finality of determination.--The judgment and decree of 
        the court shall be final, except that the same shall be subject 
        to review by the Supreme Court, as provided in section 1254 of 
        title 28, United States Code.

SEC. 303. EXCLUSIVE REVIEW.

    (a) Exclusivity of Review.--An action of the Asbestos Court, the 
Administrator, or the Asbestos Insurers Commission for which review 
could have been obtained under section 301 or 302 shall not be subject 
to judicial review in any other proceeding, including proceedings 
before the Asbestos Court.
    (b) Constitutional Review.--
            (1) In general.--Notwithstanding any other provision of 
        law, any interlocutory or final judgment, decree, or order of a 
Federal court holding this Act, or any provision or application 
thereof, unconstitutional shall be reviewable as a matter of right by 
direct appeal to the Supreme Court.
            (2) Period for filing appeal.--Any such appeal shall be 
        filed not more than 30 days after entry of such judgment, 
        decree, or order.

SEC. 304. PRIVATE RIGHT OF ACTION AGAINST REINSURERS.

    (a) In General.--Any insurer participant may file a claim in the 
United States District Court for the District of Columbia against any 
reinsurer that is contractually obligated to reimburse such insurer 
participant for a portion of costs incurred as a result of payment of 
asbestos related claims.
    (b) Expedited Procedures.--
            (1) In general.--A claim filed under subsection (a) shall 
        be subject to expedited procedures, as prescribed by the United 
        States District Court for the District of Columbia.
            (2) Evidentiary standard.--The plaintiff shall not recover 
        in a claim under subsection (a) unless the plaintiff 
        demonstrates the right to recover by a preponderance of the 
        evidence.
            (3) Final judgment.--A final judgment shall be issued on a 
        claim filed under subsection (a) not later than 30 days after 
        such filing.
    (c) Appeals.--
            (1) In general.--An appeal from a decision under subsection 
        (b) may be filed with the Court of Appeals for the District of 
        Columbia.
            (2) Standard of review.--The final judgment of the district 
        court shall be upheld unless the court of appeals finds the 
        judgment to be arbitrary and capricious.
            (3) Final judgment.--A final judgment shall be issued on an 
        appeal filed under paragraph (1) not later than 30 days after 
        such filing.

                   TITLE IV--MISCELLANEOUS PROVISIONS

SEC. 401. FALSE INFORMATION.

    Any person who knowingly provides false information in connection 
with an assessment of contributions, a claim for an award, or an audit 
under this Act shall be subject to--
            (1) criminal prosecution under section 1001 of title 18, 
        United States Code; and
            (2) civil penalties under section 3729 of title 31, United 
        States Code.

SEC. 402. EFFECT ON BANKRUPTCY LAWS.

    (a) No Automatic Stay.--Section 362(b) of title 11, United States 
Code, is amended--
            (1) in paragraph (17), by striking ``or'' at the end;
            (2) in paragraph (18), by striking the period at the end 
        and inserting ``; or''; and
            (3) by inserting after paragraph (18) the following:
            ``(19) under subsection (a) of this section of the 
        enforcement of any payment obligations under section 204 of the 
        Fairness in Asbestos Injury Resolution Act of 2003, against a 
        debtor, or the property of the estate of a debtor, that is a 
        participant (as that term is defined in section 3 of that 
        Act).''.
    (b) Assumption of Executory Contracts.--Section 365 of title 11, 
United States Code, is amended by adding at the end the following:
    ``(q) If a debtor is a participant (as that term is defined in 
section 3 of the Fairness in Asbestos Injury Resolution Act of 2003), 
the trustee shall be deemed to have assumed all executory contracts 
entered into by the participant under section 204 of that Act. The 
trustee may not reject any such executory contract.''.
    (c) Allowed Administrative Expenses.--Section 503 of title 11, 
United States Code, is amended by adding at the end the following:
    ``(c)(1) Claims or expenses of the United States, the Attorney 
General, or the Administrator (as that term is defined in section 3 of 
the Fairness in Asbestos Injury Resolution Act of 2003) based upon the 
asbestos payment obligations of a debtor that is a Participant (as that 
term is defined in section 3 of that Act), shall be paid as an allowed 
administrative expense. The debtor shall not be entitled to either 
notice or a hearing with respect to such claims.
    ``(2) For purposes of paragraph (1), the term `asbestos payment 
obligation' means any payment obligation under subtitle B of title II 
of the Fairness in Asbestos Injury Resolution Act of 2003.''.
    (d) No Discharge.--Section 523 of title 11, United States Code, is 
amended by adding at the end the following:
    ``(f) A discharge under section 727, 1141, 1228, or 1328 of this 
title does not discharge any debtor that is a participant (as that term 
is defined in section 3 of the Fairness in Asbestos Injury Resolution 
Act of 2003) of the payment obligations that is a debtor under subtitle 
B of title II of that Act.''.
    (e) Payment.--Section 524 of title 11, United States Code, is 
amended by adding at the end the following:
    ``(i) Participant Debtors.--
            ``(1) In general.--Paragraphs (2) and (3) shall apply to a 
        debtor who--
                    ``(A) is a participant that has made prior asbestos 
                expenditures (as such terms are defined in the Fairness 
                in Asbestos Injury Resolution Act of 2003); and
                    ``(B) is subject to a case under this title that is 
                pending--
                            ``(i) on the date of enactment of the 
                        Fairness in Asbestos Injury Resolution Act of 
                        2003; or
                            ``(ii) at any time during the 1-year period 
                        preceding the date of enactment of that Act.
            ``(2) Tier i debtors.--A debtor that has been assigned to 
        tier I under section 202 of the Fairness in Asbestos Injury 
        Resolution Act of 2003 shall make payments in accordance with 
        sections 202 and 203 of that Act.
            ``(3) Treatment of payment obligations.--All payment 
        obligations of a debtor under sections 202 and 203 of the 
Fairness in Asbestos Injury Resolution Act of 2003 shall--
                    ``(A) constitute costs and expenses of 
                administration of a case under section 503 of this 
                title;
                    ``(B) notwithstanding any case pending under this 
                title, be payable in accordance with section 202 of 
                that Act;
                    ``(C) not be stayed;
                    ``(D) not be affected as to enforcement or 
                collection by any stay or injunction of any court; and
                    ``(E) not be impaired or discharged in any current 
                or future case under this title.''.
    (f) Treatment of Trusts.--Section 524 of title 11, United States 
Code, as amended by this Act, is amended by adding at the end the 
following:
    ``(j) Asbestos Trusts.--
            ``(1) In general.--A trust shall assign a portion of the 
        corpus of the trust to the Asbestos Injury Claims Resolution 
        Fund (referred to in this subsection as the `Fund') as is 
        required under section 202 of the Fairness in Asbestos Injury 
        Resolution Act of 2003 if the trust qualifies as a `trust' 
        under section 201 of that Act.
            ``(2) Transfer of trust assets.--
                    ``(A) In general.--Except as provided under 
                subparagraphs (B) and (C), the assets in any trust 
                established to provide compensation for asbestos claims 
                (as defined in section 3 of the Fairness in Asbestos 
                Injury Resolution Act of 2003) shall be transferred to 
                the Fund not later than 6 months after the date of 
                enactment of the Fairness in Asbestos Injury Resolution 
                Act of 2003. Except as provided under subparagraph (B), 
                the Administrator of the Fund shall accept such assets 
                and utilize them for any purposes of the Fund under 
                section 223 of such Act, including the payment of 
                claims for awards under such Act to beneficiaries of 
                the trust from which the assets were transferred. After 
                such transfer, each trustee of such trust shall have no 
                liability to any beneficiary of such trust.
                    ``(B) Authority to refuse assets.--The 
                Administrator of the Fund may refuse to accept any 
                asset that the Administrator determines may create 
                liability for the Fund in excess of the value of the 
                asset.
                    ``(C) Allocation of trust assets.--If a trust under 
                subparagraph (A) has beneficiaries with claims that are 
                not asbestos claims, the assets transferred to the Fund 
                under subparagraph (A) shall not include assets 
                allocable to such beneficiaries. The trustees of any 
                such trust shall determine the amount of such trust 
                assets to be reserved for the continuing operation of 
                the trust in processing and paying claims that are not 
                asbestos claims. Such reserved amount shall not be 
                greater than 3 percent of the total assets in the trust 
                and shall not be transferred to the Fund.
                    ``(D) Sale of fund assets.--The investment 
                requirements under section 222 of the Fairness in 
                Asbestos Injury Resolution Act of 2003 shall not be 
                construed to require the Administrator of the Fund to 
                sell assets transferred to the Fund under subparagraph 
                (A).
                    ``(E) Liquidated claims.--A trust shall not make 
                any payment relating to asbestos claims unless such 
                claims were liquidated in the ordinary course and the 
                normal and usual administration of the trust consistent 
                with past practices before the date of enactment of the 
                Fairness in Asbestos Injury Resolution Act of 2003.
            ``(3) Injunction.--Any injunction issued as part of the 
        formation of a trust described in paragraph (1) shall remain in 
        full force and effect until the assignment required under 
        paragraph (1) has been made.''.
    (g) No Avoidance of Transfer.--Section 546 of title 11, United 
States Code, is amended by adding at the end the following:
    ``(h) Notwithstanding the rights and powers of a trustee under 
sections 544, 545, 547, 548, 549, and 550 of this title, if a debtor is 
a participant (as that term is defined in section 3 of the Fairness in 
Asbestos Injury Resolution Act of 2003), the trustee may not avoid a 
transfer made by the debtor pursuant to its payment obligations under 
section 202 or 203 of that Act.''.
    (h) Confirmation of Plan.--Section 1129(a) of title 11, United 
States Code, is amended by adding at the end the following:
            ``(14) If the debtor is a participant (as that term is 
        defined in section 3 of the Fairness in Asbestos Injury 
        Resolution Act of 2003), the plan provides for the continuation 
        after its effective date of payment of all payment obligations 
under title II of that Act.''.

SEC. 403. EFFECT ON OTHER LAWS AND EXISTING CLAIMS.

    (a) Effect on Federal and State Law.--The provisions of this Act 
shall supersede any and all Federal and State laws insofar as they may 
relate to any asbestos claim filed under this Act.
    (b) Superseding Provisions.--
            (1) In general.--Any agreement, understanding, or 
        undertaking by any person or affiliated group assigned to Tiers 
        II through VI with respect to the treatment of any asbestos 
        claim filed before the date of enactment of this Act that 
        requires future performance by any party shall be superseded in 
        its entirety by this Act.
            (2) No force or effect.--Any such agreement, understanding, 
        or undertaking by any such person or affiliated group shall be 
        of no force or effect, and no person shall have any rights or 
        claims with respect to any of the foregoing.
    (c) Exclusive Remedy.--The remedies provided under this Act shall 
be the exclusive remedy for any asbestos claim under any Federal or 
State law.
    (d) Bar on Asbestos Claims.--
            (1) In general.--No asbestos claim may be pursued in any 
        Federal or State court, except for enforcement of claims for 
        which an order or judgment has been duly entered by a court 
        that is no longer subject to any appeal or judicial review 
        before the date of enactment of this Act.
            (2) Preemption.--Any action asserting an asbestos claim in 
        a court of any State, except actions for which an order or 
        judgment has been duly entered by a court that is no longer 
        subject to any appeal or judicial review before the date of 
        enactment of this Act, is preempted by this Act.
            (3) Dismissal.--No judgment other than a judgment of 
        dismissal may be entered in any such action, including an 
        action pending on appeal, or on petition or motion for 
        discretionary review, on or after the date of enactment of this 
        Act. A court may dismiss any such action on its motion. If the 
        district court denies the motion to dismiss, it shall stay 
        further proceedings until final disposition of any appeal taken 
        under this Act.
            (4) Removal.--
                    (A) In general.--If an action under paragraph (2) 
                is not dismissed, or if an order entered after the date 
                of enactment of this Act purporting to enter judgment 
                or deny review is not rescinded and replaced with an 
                order of dismissal within 30 days after the filing of a 
                motion by any party to the action advising the court of 
                the provisions of this Act, any party may remove the 
                case to the district court of the United States for the 
                district in which such action is pending.
                    (B) Time limits.--For actions originally filed 
                after the date of enactment of this Act, the notice of 
                removal shall be filed within the time limits specified 
                in section 1441(b) of title 28, United States Code.
                    (C) Procedures.--The procedures for removal and 
                proceedings after removal shall be in accordance with 
                sections 1446 through 1450 of title 28, United States 
                Code, except as may be necessary to accommodate removal 
                of any actions pending (including on appeal) on the 
                date of enactment of this Act.
                    (D) Jurisdiction.--The jurisdiction of the district 
                court shall be limited to--
                            (i) determining whether removal was proper; 
                        and
                            (ii) ruling on a motion to dismiss based on 
                        this Act.
                                 <all>