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






                                                       Calendar No. 239
108th CONGRESS
  1st Session
                                S. 1125

                          [Report No. 108-118]

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

                             July 22, 2003

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

                July 30 (legislative day, July 21), 2003

                 Reported by Mr. Hatch, with amendments
  [Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

                                 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. <DELETED>Purpose.</DELETED> Findings and purpose.
Sec. 3. Definitions.
                  TITLE I--ASBESTOS CLAIMS RESOLUTION

Subtitle A--United States Court of <DELETED>Asbestos</DELETED> Federal 
                                 Claims

Sec. 101. <DELETED>Establishment of Asbestos Court.</DELETED> United 
                            States Court of Federal Claims.
        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. <DELETED>Essential elements of eligible asbestos claim.</DELETED> 
                            Medical criteria requirements.
<DELETED>Sec. 122. Diagnostic criteria requirements.
<DELETED>Sec. 123. Latency criteria requirements.
<DELETED>Sec. 124. Medical criteria requirements.
<DELETED>Sec. 125. Exposure criteria requirements.
                      </DELETED>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. 210. Definitions.
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.
<DELETED>Sec. 215. Nonapplication of FOIA and confidentiality of 
                            information.
</DELETED>Sec. 215. Application of FOIA.
Sec. 216. Termination of Asbestos Insurers Commission.
<DELETED>Sec. 217. Authorization of appropriations.
</DELETED>Sec. 217. Expenses and costs of the Commission.
        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.
<DELETED>Sec. 225. Additional contributing participants.
                  </DELETED>TITLE III--JUDICIAL REVIEW

Sec. 301. Judicial review of decisions of the <DELETED>Asbestos Court.</DELETED> 
                            United States Court of Asbestos Claims.
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. 404. Annual report of the Administrator.
Sec. 405. Rules of construction relating to liability of the United 
                            States Government.
Sec. 406. Effect on insurance and reinsurance contracts.
          TITLE V--PROHIBITION OF ASBESTOS CONTAINING PRODUCTS

Sec. 501. Prohibition on asbestos containing products.

<DELETED>SEC. 2. PURPOSE.</DELETED>

<DELETED>    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.</DELETED>

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) A great number of Americans have been exposed to forms 
        of asbestos that can have devastating health effects.
            (2) Various injuries can be caused by exposure to some 
        forms of asbestos, including pleural disease and some forms of 
        cancer.
            (3) The injuries caused by asbestos can have latency 
        periods of up to 40 years, and even limited exposure to some 
        forms of asbestos may result in injury in some cases.
            (4) Asbestos litigation has had a significant detrimental 
        effect on the country's economy, driving companies into 
        bankruptcy, diverting resources from those who are truly sick, 
        and endangering jobs and pensions.
            (5) The scope of the asbestos litigation crisis cuts across 
        every State and virtually every industry.
            (6) The United States Supreme Court has recognized that 
        Congress must act to create a more rational asbestos claims 
        system. In 1991, a Judicial Conference Ad Hoc Committee on 
        Asbestos Litigation, appointed by Chief Justice William 
        Rehnquist, found that the ``ultimate solution should be 
        legislation recognizing the national proportions of the problem 
        . . . and creating a national asbestos dispute resolution 
        scheme . . .''. The Court found in 1997 in Amchem Products Inc. 
        v. Windsor, 521 U.S. 591, 595 (1997), that ``[t]he argument is 
        sensibly made that a nationwide administrative claims 
        processing regime would provide the most secure, fair, and 
        efficient means of compensating victims of asbestos exposure.'' 
        In 1999, the Court in Ortiz v. Fibreboard Corp., 527 U.S. 819, 
        821 (1999), found that the ``elephantine mass of asbestos cases 
        . . . defies customary judicial administration and calls for 
        national legislation.'' That finding was again recognized in 
        2003 by the Court in Norfolk & Western Railway Co. v. Ayers, 
        123 S.Ct. 1210 (2003).
            (7) This crisis, and its significant effect on the health 
        and welfare of the people of the United States, on interstate 
        and foreign commerce, and on the bankruptcy system, compels 
        Congress exercise its power to regulate interstate commerce and 
        create this legislative solution in the form of a national 
        asbestos injury claims resolution program to supersede all 
        existing methods to compensate those injured by asbestos, 
        except as specified in this Act.
    (b) Purpose.--The purpose of this Act is to--
            (1) create a privately funded, publicly administered fund 
        to provide the necessary resources for a fair and efficient 
        system to resolve asbestos injury claims that will provide 
        compensation for legitimate present and future claimants of 
        asbestos exposure as provided in this Act;
            (2) provide compensation to those present and future 
        victims based on the severity of their injuries, while 
        establishing a system flexible enough to accommodate 
        individuals whose condition worsens;
            (3) relieve the Federal and State courts of the burden of 
        the asbestos litigation; and
            (4) increase economic stability by resolving the asbestos 
        litigation crisis that has bankrupted companies with asbestos 
        liability, diverted resources from the truly sick, and 
        endangered jobs and pensions.

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).
        <DELETED>    (2) Asbestos.--The term ``asbestos'' includes--
        </DELETED>
                <DELETED>    (A) asbestos chrysotile;</DELETED>
                <DELETED>    (B) asbestos amosite;</DELETED>
                <DELETED>    (C) asbestos crocidolite;</DELETED>
                <DELETED>    (D) asbestos tremolite;</DELETED>
                <DELETED>    (E) asbestos winchite;</DELETED>
                <DELETED>    (F) asbestos richterite;</DELETED>
                <DELETED>    (G) asbestos anthophyllite;</DELETED>
                <DELETED>    (H) asbestos actinolite;</DELETED>
            (2) Asbestos.--The term ``asbestos'' includes--
                    (A) chrysotile;
                    (B) amosite;
                    (C) crocidolite;
                    (D) tremolite asbestos;
                    (E) winchite asbestos;
                    (F) richterite asbestos;
                    (G) anthophyllite asbestos;
                    (H) actinolite asbestos;
                    (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.
        <DELETED>    (5) Asbestos court; court.--The terms ``Asbestos 
        Court'' or ``Court'' means the United States Court of Asbestos 
        Claims established under section 101.</DELETED>
            (6)</DELETED> (5) 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.
        <DELETED>    (7) Collateral source.--The term ``collateral 
        source''--</DELETED>
                <DELETED>    (A) means all collateral sources, 
                including--</DELETED>
                        <DELETED>    (i) disability 
                        insurance;</DELETED>
                        <DELETED>    (ii) health insurance;</DELETED>
                        <DELETED>    (iii) medicare;</DELETED>
                        <DELETED>    (iv) medicaid;</DELETED>
                        <DELETED>    (v) death benefit 
                        programs;</DELETED>
                        <DELETED>    (vi) defendants;</DELETED>
                        <DELETED>    (vii) insurers of defendants; 
                        and</DELETED>
                        <DELETED>    (viii) compensation trusts; 
                        and</DELETED>
                <DELETED>    (B) shall not include life insurance. 
                </DELETED>
            (6) Collateral source compensation.--The term ``collateral 
        source compensation'' means the compensation that the claimant 
        received, or is entitled to receive, from a defendant or an 
        insurer of that defendant, or compensation trust as a result of 
        a judgment or settlement for an asbestos-related injury that is 
        the subject of a claim filed under section 111.
            (7) Court of federal claims; court.--The terms ``Court of 
        Federal Claims'' or ``Court'' mean the United States Court of 
        Federal Claims established under section 171 of title 28, 
        United States Code.
            (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.
        <DELETED>    (11) Participant.--The term ``participant'' means 
        any person subject to the funding requirements of title II, 
        including--</DELETED>
                <DELETED>    (A) any defendant participant subject to 
                an assessment for contribution under subtitle A of that 
                title; and</DELETED>
                <DELETED>    (B) any insurer participant subject to an 
                assessment for contribution under subtitle B of that 
                title.</DELETED>
            (11) Participant.--
                    (A) In general.--The term ``participant'' means any 
                person subject to the funding requirements of title II, 
                including--
                            (i) any defendant participant subject to an 
                        assessment for contribution under subtitle A of 
                        that title;
                            (ii) any insurer participant subject to an 
                        assessment for contribution under subtitle B of 
                        that title; and
                            (iii) any successor in interest of a 
                        participant.
                    (B) Exception.--
                            (i) In general.--A defendant participant 
                        shall not include any person protected from any 
                        asbestos claim by reason of an injunction 
                        entered in connection with a plan of 
                        reorganization under chapter 11 of title 11, 
                        United States Code, that has been confirmed by 
                        a duly entered order or judgment of a court 
                        that is no longer subject to any appeal or 
                        judicial review.
                            (ii) Applicability.--Clause (i) shall not 
                        apply to a person who may be assessed for 
                        contributions under subtitle A of title II for 
                        prior asbestos expenditures related to asbestos 
                        claims that are not covered by an injunction 
                        described under clause (i).
            (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) Substantially continues.--The term ``substantially 
        continues'' means that the business operations have not been 
        significantly modified by the change in ownership.
            (15) Successor in interest.--The term ``successor in 
        interest'' means any person that acquires assets, and 
        substantially continues the business operations, of a 
        participant. The factors to be considered in determining 
        whether a person is a successor in interest include, but are 
        not limited to--
                    (A) retention of the same facilities or location;
                    (B) retention of the same employees;
                    (C) maintaining the same job under the same working 
                conditions;
                    (D) retention of the same supervisory personnel;
                    (E) continuity of assets;
                    (F) production of the same product or offer of the 
                same service;
                    (G) retention of the same name;
                    (H) maintenance of the same customer base;
                    (I) identity of stocks, stockholders, and directors 
                between the asset seller and the purchaser; or
                    (J) whether the successor holds itself out as 
                continuation of previous enterprise, but expressly does 
                not include whether the person actually knew of the 
                liability of the participant under this Act.
            (<DELETED>14</DELETED>) (16) 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.
            (<DELETED>15</DELETED>) (17) 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. <DELETED>sections</DELETED> 
                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

 <DELETED>Subtitle A--United States Court of Asbestos Claims</DELETED>

<DELETED>SEC. 101. ESTABLISHMENT OF ASBESTOS COURT.</DELETED>

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

 <DELETED>``CHAPTER 9--UNITED STATES COURT OF ASBESTOS CLAIMS</DELETED>

<DELETED>``Sec.
<DELETED>``201. Establishment of the United States Court of Asbestos 
                            Claims.
<DELETED>``202. Magistrates.
<DELETED>``203. Retirement of judges of the United States Court of 
                            Asbestos Claims.
<DELETED>``Sec. 201. Establishment of the United States Court of 
              Asbestos Claims</DELETED>
<DELETED>    ``(a) Establishment and Appointment of Judges.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(b) Term; Removal; Compensation.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Removal.--Judges may be removed by the 
        President only for good cause.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Chief Judge.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Term.--The chief judge may continue to serve 
        as such until--</DELETED>
                <DELETED>    ``(A) he or she reaches the age of 70 
                years;</DELETED>
                <DELETED>    ``(B) another judge is designated as chief 
                judge by the President; or</DELETED>
                <DELETED>    ``(C) the expiration of his or her term 
                under subsection (b)(1).</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(4) Powers of chief judge.--The chief judge is 
        authorized to--</DELETED>
                <DELETED>    ``(A) prescribe rules and procedures for 
                hearings and appeals of the Court of Asbestos Claims 
                and its magistrates;</DELETED>
                <DELETED>    ``(B) appoint magistrates;</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(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.</DELETED>
<DELETED>    ``(d) Time and Places of Holding Court.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(e) Official Duty Station; Residence.--</DELETED>
        <DELETED>    ``(1) Duty station.--The official duty station of 
        each judge of the Court of Asbestos Claims is the District of 
        Columbia.</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>``Sec. 202. Magistrates</DELETED>
<DELETED>    ``(a) Appointment.--The chief judge shall appoint such 
magistrates as necessary to facilitate the expeditious processing of 
claims.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>``Sec. 203. Retirement of judges of the United States Court of 
              Asbestos Claims</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(b) Regulations.--In carrying out this section--
</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(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.''.</DELETED>
<DELETED>    (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:</DELETED>

<DELETED>``9. United States Court of Asbestos Claims.''.

      </DELETED>Subtitle A--United States Court of Federal Claims

SEC. 101. UNITED STATES COURT OF FEDERAL CLAIMS.

    (a) In General.--The United States Court of Federal Claims, through 
the Office of Special Asbestos Masters, shall have authority to examine 
asbestos claims and make awards in accordance with this Act. The Office 
of Special Asbestos Masters shall be under the supervision of the 
Court.
    (b) Office of Special Asbestos Masters.--
            (1) Establishment.--There is established the Office of 
        Special Asbestos Masters within the United States Court of 
        Federal Claims.
            (2) Purpose.--The purpose of the Office of Special Asbestos 
        Masters is to provide fair compensation in a nonadversarial 
        manner to individuals whose health has been adversely affected 
        by exposure to asbestos in the amounts and under the terms 
        specified in this Act.
    (c) Special Asbestos Masters.--
            (1) Appointment.--
                    (A) In general.--The chief judge of the Court of 
                Federal Claims shall appoint special asbestos masters 
                as necessary to facilitate the expeditious processing 
                of claims.
                    (B) Concurrence of the court.--The appointment and 
                reappointment of each special asbestos master, 
                including the chief special asbestos master, shall be 
                by the concurrence of a majority of the active judges 
                of the Court.
            (2) Limitation in numbers.--The chief judge of the Court 
        may not appoint more than 20 special asbestos masters, 
        including the chief special asbestos master, to carry out this 
        Act, unless the chief judge submits notice to Congress 60 days 
        before each appointment in excess of that number is made.
            (3) Chief special asbestos master.--
                    (A) Appointment.--The chief judge of the Court 
                shall appoint a chief special asbestos master in 
                accordance with paragraph (1).
                    (B) Term of chief special asbestos master.--The 
                chief special asbestos master shall serve for a term of 
                4 years. The chief judge of the Court may reappoint the 
                chief special asbestos master for additional 2-year 
                terms in accordance with paragraph (1).
                    (C) Powers of chief special asbestos master.--The 
                chief special asbestos master, in consultation with the 
                chief judge of the Court, may--
                            (i) prescribe rules and procedures for the 
                        processing of claims;
                            (ii) appoint or contract for the services 
                        of such personnel, as may be necessary and 
                        appropriate, to carry out the responsibilities 
                        of the Office of Special Asbestos Masters; and
                            (iii) make such expenditures as may be 
                        necessary and appropriate in the administration 
                        of the responsibilities of the Office of 
                        Special Asbestos Masters under this Act.
            (4) Term of special asbestos masters.--The special asbestos 
        masters shall serve for a term of 4 years and may be 
        reappointed for additional 2-year terms.
            (5) Removal.--Special asbestos masters, including the chief 
        special asbestos master, shall be subject to removal by the 
        concurrence of a majority of the active judges of the Court for 
        incompetency, misconduct, neglect of duty, physical or mental 
        disability, or other good cause shown.
            (6) Compensation.--The compensation of special asbestos 
        masters shall be determined by the chief judge, but shall not 
        exceed the annual rate of basic pay of level V of the Executive 
        Schedule under section 5316 of title 5, United States Code.
    (d) Rules of Construction.--
            (1) Libby, montana claimants.--Nothing in this Act shall 
        preclude the formation of a fund for the payment of eligible 
        medical expenses related to treating asbestos-related disease 
        for current and former residents of Libby, Montana.
            (2) Health care from provider of choice.--Nothing in this 
        Act shall be construed to preclude any eligible claimant from 
        receiving healthcare from the provider of their choice.

        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 <DELETED>Asbestos Court</DELETED> 
        Court of Federal Claims for an award with respect to such 
        injury.
            (2) Rules.--The <DELETED>Asbestos Court</DELETED> Court of 
        Federal Claims 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 <DELETED>identity of any 
        product or manufacturer,</DELETED> 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, x-ray films, 
        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; 
        <DELETED>and
        </DELETED>    (8) any claimant who asserts that the claimant is 
        a nonsmoker or an ex-smoker, as defined in section 131, shall 
        provide sufficient evidence of nonsmoking, including relevant 
        medical records; and
            <DELETED>(8)</DELETED> (9) 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 
        <DELETED>Asbestos Court</DELETED> Court of Federal Claims under 
        this section within <DELETED>2</DELETED> 4 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 <DELETED>2</DELETED> 4 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.
        <DELETED>    (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.</DELETED>

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 <DELETED>Asbestos Court</DELETED> 
        Office of Special Asbestos Masters, in consultation with the 
        chief judge of the Court of Federal Claims, shall appoint, or 
        contract for the services of, qualified individuals to assist 
        <DELETED>magistrates</DELETED> special asbestos masters by 
        conducting eligibility reviews of asbestos claims filed with 
        the Court.
            (2) Criteria.--The <DELETED>Asbestos Court</DELETED> Office 
        of Special Asbestos Masters, in consultation with the chief 
        judge of the Court of Federal Claims, 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 <DELETED>Asbestos Court</DELETED> 
Court of Federal Claims, the Court shall refer such claim to <DELETED>a 
magistrate</DELETED> the Office of Special Asbestos Masters.
    (c) Initial Review.--
            (1) In general.--Under the direction of a 
        <DELETED>magistrate</DELETED> special asbestos master, 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.
            (3) Independent reviews of medical evidence.--
                    (A) In general.--The Court of Federal Claims shall 
                establish procedures for independently evaluating the 
                medical evidence submitted in support of claims.
                    (B) Review of certified b readers.--
                            (i) In general.--At a minimum, the Court of 
                        Federal Claims shall prescribe procedures for 
                        special asbestos masters to randomly assign 
                        claims for confirmation by an independent 
                        certified B reader of x-rays submitted in 
                        support of a claim, the cost of which shall be 
                        borne by the Fund.
                            (ii) Disagreement.--If an independent 
                        certified B reader assigned under clause (i) 
                        disagrees with the quality grading or ILO level 
                        assigned to an x-ray submitted in support of a 
                        claim, the Court of Federal Claims shall 
                        require a review of such x-rays by a second 
                        independent certified B reader.
                            (iii) Denial of claim.--If neither 
                        certified B reader under clause (ii) agrees 
                        with the quality grading and the ILO grade 
                        level assigned to an x-ray as part of the 
                        claim, the special asbestos master shall 
                        recommend denial of the claim under subsection 
                        (f).
                            (iv) Certified b readers.--The 
                        Administrator shall maintain a list of a 
                        minimum of 50 certified B readers eligible to 
                        participate in the independent reviews, chosen 
                        from all certified B readers. When an x-ray is 
                        sent for independent review, the Administrator 
                        shall choose the certified B reader at random 
                        from that list.
            (4) Smoking assessment.--
                    (A) In general.--To aid in the assessment of the 
                accuracy of claimant representations as to their 
                smoking status for purposes of determining eligibility 
                and amount of award under sections 121 and 131, a 
                claimant shall provide consent for the claims examiner 
                to obtain relevant historical records, including--
                            (i) records of past medical treatment and 
                        evaluation;
                            (ii) affidavits of the claimant or a family 
                        member;
                            (iii) applications for insurance and 
                        supporting materials; and
                            (iv) employer medical examinations if 
                        available after a good faith attempt to obtain 
                        such historical records.
                    (B) Review.--The frequency of review of historical 
                records submitted under subparagraph (A) shall be at 
                the discretion of the claims examiner, but shall 
                address at least 5 percent of the claimant nonsmokers.
                    (C) Consent.--Claimants that assert they are 
                nonsmokers and ex-smokers consent to the performance of 
                blood tests or any other appropriate medical test to 
                confirm the validity of the assertion.
                    (D) Penalty for false statements.--Any false 
                information submitted under this subsection shall be 
                subject to criminal prosecution or civil penalties as 
                provided under section 401.
    (d) Expeditious Determinations.--The <DELETED>Asbestos Court</DELETED> 
Court of Federal Claims shall prescribe rules to expedite claims for 
asbestos claimants with exigent circumstances.
    (e) Audit and Personnel Review Procedures.--The <DELETED>Asbestos 
Court</DELETED> Court of Federal Claims shall establish audit and 
personnel review procedures for evaluating the accuracy of eligibility 
recommendations of <DELETED>magistrates</DELETED> special asbestos 
masters.
<DELETED>    (f) Eligibility Determinations.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (g) Decision of Judge.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
    (f) Eligibility Determinations.--
            (1) In general.--Not later than 60 days after the receipt 
        by a special asbestos master of all required information and 
        requested medical advice with respect to an asbestos claim, the 
        special asbestos master shall determine the amount of any award 
        to which the claimant is entitled.
            (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 additional review.
    (g) Waiver of Additional Review.--The final decision under 
subsection (f) shall include an acceptance form by which the claimant 
may waive the right to additional review and expedite payment of an 
award from the Fund.
<DELETED>    (h) Awarding of Compensation.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Claim extinguished.--The acceptance of a 
        payment under this Act shall extinguish all claims related to 
        such payment.</DELETED>
    (h) Awarding of Compensation.--
            (1) In general.--If a special asbestos master determines 
        that an asbestos claimant is entitled to an award and the 
        claimant waives any right to appeal, the special asbestos 
        master shall notify the Administrator to award the claimant an 
        amount of the special asbestos master's decision from the Fund.
            (2) Claim extinguished.--The acceptance of a payment under 
        this Act shall extinguish all claims related to such payment.
    (i) Appeal to Panel of Special Asbestos Masters.--
            (1) In general.--Not later than 30 days after receiving 
        notice of the decision of a special asbestos master under 
        section 114, a claimant may appeal the special asbestos 
        master's determination to a panel of 3 special masters. Within 
        60 days after receipt of an appeal, the panel may reverse the 
        special asbestos master's determination if--
                    (A) new and material evidence is available that, 
                despite due diligence, was not available when the 
                record closed;
                    (B) the decision of the special asbestos master is 
                based on an erroneous interpretation of statute or 
                regulation; or
                    (C) the decision of the special asbestos master is 
                clearly erroneous based on the evidence.
            (2) Awarding of Compensation.--
                    (A) In general.--If a panel of special asbestos 
                masters determines that an asbestos claimant is 
                entitled to an award and the claimant waives any right 
                to appeal, the panel shall notify the Administrator to 
                award the claimant an amount of the decision of the 
                panel from the Fund.
                    (B) Claim extinguished.--The acceptance of a 
                payment as provided under this subsection shall 
                extinguish all claims related to such payment.
    (j) Medical Advisory Committee.--
            (1) In general.--The chief judge of the Court of Federal 
        Claims may appoint a Medical Advisory Committee of the Court of 
        Federal Claims consisting of qualified physicians for purposes 
        of providing appropriate medical advice relating to the review 
        of claims.
            (2) Qualifications.--To be eligible for appointment to the 
        Medical Advisory Committee under paragraph (1), a person shall 
        be--
                    (A) a physician licensed in any State;
                    (B) board-certified in pulmonary medicine, 
                occupational medicine, internal medicine, oncology, or 
                pathology; and
                    (C) actively and primarily practicing medicine in a 
                field directly related to the board certification of 
                the physician.
            (3) Duties.--Special asbestos masters and claims examiners 
        may refer questions concerning the medical eligibility of 
        claimants to the committee for its advice and recommendations.

SEC. 115. MEDICAL EVIDENCE AUDITING PROCEDURES.

    (a) Development.--The <DELETED>Asbestos Court</DELETED> Court of 
Federal Claims 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 <DELETED>Asbestos Court</DELETED> 
        Court of Federal Claims 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 
        <DELETED>magistrates</DELETED> special asbestos masters 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 
        <DELETED>Asbestos Court</DELETED> Court of Federal Claims 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 <DELETED>Asbestos Court</DELETED> Court of 
Federal Claims 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 <DELETED>Asbestos Court</DELETED> Court of 
        Federal Claims 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.
            (3) Notice.--
                    (A) Notice by court.--The Court shall provide 
                asbestos claimants with notice of, and information 
                relating to--
                            (i) pro bono services for legal assistance 
                        available to those claimants; and
                            (ii) any limitations on attorneys fees for 
                        asbestos claims filed under this title.
                    (B) Notice by attorneys.--Before a person becomes a 
                client of an attorney with respect to an asbestos 
                claim, that attorney shall provide notice to that 
                person of pro bono services for legal assistance 
                available for that claim.

                      Subtitle C--Medical Criteria

<DELETED>SEC. 121. ESSENTIAL ELEMENTS OF ELIGIBLE ASBESTOS 
              CLAIM.</DELETED>

<DELETED>    To be eligible for an award under this title for an 
asbestos-related injury, an individual shall--</DELETED>
        <DELETED>    (1) file an asbestos claim under this title in a 
        timely manner; and</DELETED>
        <DELETED>    (2) prove, by a preponderance of the evidence 
        that--</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (B) the claimant meets the latency 
                criteria requirements described in section 123 and the 
                exposure criteria requirements described in section 
                125.</DELETED>

<DELETED>SEC. 122. DIAGNOSTIC CRITERIA REQUIREMENTS.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (b) Diagnosis.--A medical diagnosis meets the requirements 
of this section if the diagnosis--</DELETED>
        <DELETED>    (1) is made by a physician who--</DELETED>
                <DELETED>    (A) treated, or is treating, the 
                claimant;</DELETED>
                <DELETED>    (B) conducted an in-person medical 
                examination of the claimant; and</DELETED>
                <DELETED>    (C) is licensed to practice medicine in 
                the State in which the examination occurred and in 
                which the diagnosis is rendered;</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (3) is independently verified with respect to the 
        duration, proximity, regularity, and intensity of the asbestos 
        exposure involved; and</DELETED>
        <DELETED>    (4) has excluded other more likely causes of the 
        injury of the claimant.</DELETED>
<DELETED>    (c) Results of Medical Examinations and Tests.--</DELETED>
        <DELETED>    (1) In general.--In making the demonstration 
        required under subsection (a), an asbestos claimant shall 
        submit--</DELETED>
                <DELETED>    (A) x-rays (including both films and B-
                reader reports);</DELETED>
                <DELETED>    (B) detailed results of pulmonary function 
                tests (including spirometric tracings);</DELETED>
                <DELETED>    (C) laboratory tests; and</DELETED>
                <DELETED>    (D) the results of medical examination or 
                reviews of other medical evidence.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (f) Rules.--The Asbestos Court shall prescribe rules to 
implement the diagnostic criteria requirements to be used in applying 
this section.</DELETED>

<DELETED>SEC. 123. LATENCY CRITERIA REQUIREMENTS.</DELETED>

<DELETED>    (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--</DELETED>
        <DELETED>    (1) in a manner that meets the exposure 
        requirements of sections 124 and 125;</DELETED>
        <DELETED>    (2) within the United States or its territories or 
        possessions; and</DELETED>
        <DELETED>    (3) for at least 10 years before the initial 
        diagnosis of any asbestos-related injury.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (c) Variations in Latency Periods.--Latency periods under 
this section may vary based on the eligible disease or condition 
involved.</DELETED>
<DELETED>    (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.</DELETED>

<DELETED>SEC. 124. MEDICAL CRITERIA REQUIREMENTS.</DELETED>

<DELETED>    (a) Definitions.--In this section, the following 
definitions shall apply:</DELETED>
        <DELETED>    (1) Bilateral asbestos-related nonmalignant 
        disease.--The term ``bilateral asbestos-related nonmalignant 
        disease'' means a diagnosis of bilateral asbestos-related 
        nonmalignant disease based on--</DELETED>
                <DELETED>    (A) an x-ray reading of 
                </DELETED>\<DELETED>1/0</DELETED>\ <DELETED>or higher 
                on the ILO scale; or</DELETED>
                <DELETED>    (B) an x-ray showing bilateral pleural 
                plaques or pleural thickening, bilateral interstitial 
                fibrosis, or bilateral interstitial markings.</DELETED>
        <DELETED>    (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 
        </DELETED>\<DELETED>1/4</DELETED>\ <DELETED>of the projection 
        of the lateral chest wall.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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).</DELETED>
        <DELETED>    (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.</DELETED>
                <DELETED>    (A) handled raw asbestos fibers on a 
                regular basis;</DELETED>
                <DELETED>    (B) fabricated asbestos-containing 
                products so that the claimant in the fabrication 
                process was exposed on a regular basis to raw asbestos 
                fibers;</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (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).</DELETED>
        <DELETED>    (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--</DELETED>
        <DELETED>    (9) TLC.--The term ``TLC'' means total lung 
        capacity, which is the volume of air in the lung after maximal 
        inspiration.</DELETED>
<DELETED>    (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:</DELETED>
        <DELETED>    (1) For Level I: Asymptomatic Exposure, the 
        claimant shall provide--</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (B) meaningful and credible evidence of 6 
                months of occupational exposure to asbestos before 
                December 31, 1982.</DELETED>
        <DELETED>    (2) For Level II: Asbestosis/Pleural Disease A, 
        the claimant shall provide--</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (B) meaningful and credible evidence of--
                </DELETED>
                        <DELETED>    (i) 6 months of occupational 
                        exposure to asbestos before December 31, 1982; 
                        and</DELETED>
                        <DELETED>    (ii) significant occupational 
                        exposure.</DELETED>
        <DELETED>    (3) For Level III: Asbestosis/Pleural Disease B, 
        the claimant shall provide--</DELETED>
                <DELETED>    (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;</DELETED>
                <DELETED>    (B) pulmonary function testing that 
                shows--</DELETED>
                        <DELETED>    (i) TLC less than 80 percent of 
                        predicted; or</DELETED>
                        <DELETED>    (ii) FVC less than 80 percent of 
                        predicted, and a FEV1/FVC ratio of not less 
                        than 65 percent;</DELETED>
                <DELETED>    (C) meaningful and credible evidence of--
                </DELETED>
                        <DELETED>    (i) 6 months of occupational 
                        exposure to asbestos before December 31, 1982; 
                        and</DELETED>
                        <DELETED>    (ii) significant occupational 
                        exposure; and</DELETED>
                <DELETED>    (D) supporting medical documentation 
                establishing asbestos exposure as a contributing factor 
                in causing the pulmonary condition in 
                question.</DELETED>
        <DELETED>    (4) For Level IV: Severe Asbestosis, the claimant 
        shall provide--</DELETED>
                <DELETED>    (A) a diagnosis that meets the 
                requirements of section 122 of asbestosis by B-reader 
                certified chest x-rays of ILO Grade 
                </DELETED>\<DELETED>2/1</DELETED>\ <DELETED>or greater, 
                or by pathological evidence of asbestosis;</DELETED>
                <DELETED>    (B) pulmonary function testing that 
                shows--</DELETED>
                        <DELETED>    (i) TLC less than 65 percent of 
                        predicted; or</DELETED>
                        <DELETED>    (ii) FVC less than 65 percent of 
                        predicted, and a FEV1/FVC ratio greater than 65 
                        percent;</DELETED>
                <DELETED>    (C) meaningful and credible evidence of--
                </DELETED>
                        <DELETED>    (i) 6 months of occupational 
                        exposure to asbestos before December 31, 1982; 
                        and</DELETED>
                        <DELETED>    (ii) significant occupational 
                        exposure; and</DELETED>
                <DELETED>    (D) supporting medical documentation 
                establishing asbestos exposure as a contributing factor 
                in causing the pulmonary condition in 
                question.</DELETED>
        <DELETED>    (5) For Level V: Other Cancer, the claimant shall 
        provide--</DELETED>
                <DELETED>    (A) a diagnosis that meets the 
                requirements of section 122 of a primary laryngeal, 
                esophageal, pharyngeal, or stomach cancer;</DELETED>
                <DELETED>    (B) evidence of an underlying bilateral 
                asbestos-related nonmalignant disease;</DELETED>
                <DELETED>    (C) meaningful and credible evidence of--
                </DELETED>
                        <DELETED>    (i) 6 months of occupational 
                        exposure to asbestos before December 31, 1982; 
                        and</DELETED>
                        <DELETED>    (ii) significant occupational 
                        exposure; and</DELETED>
                <DELETED>    (D) supporting medical documentation 
                establishing asbestos exposure as a contributing factor 
                in causing the other cancer in question.</DELETED>
        <DELETED>    (6) For Level VI: Lung Cancer One, the claimant 
        shall provide--</DELETED>
                <DELETED>    (A) a diagnosis that meets the 
                requirements of section 122 of a primary lung 
                cancer;</DELETED>
                <DELETED>    (B) meaningful and credible evidence of 6 
                months of occupational exposure to asbestos before 
                December 31, 1982; and</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (7) For Level VII: Lung Cancer Two, the claimant 
        shall provide--</DELETED>
                <DELETED>    (A) a diagnosis that meets the 
                requirements of section 122 of a primary lung 
                cancer;</DELETED>
                <DELETED>    (B) evidence of an underlying bilateral 
                asbestos-related nonmalignant disease;</DELETED>
                <DELETED>    (C) meaningful and credible evidence of--
                </DELETED>
                        <DELETED>    (i) 6 months of occupational 
                        exposure to asbestos before December 31, 1982; 
                        and</DELETED>
                        <DELETED>    (ii) significant occupational 
                        exposure; and</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (8) For Level VIII: Mesothelioma, the claimant 
        shall provide--</DELETED>
                <DELETED>    (A) a diagnosis that meets the 
                requirements of section 122 of mesothelioma; 
                and</DELETED>
                <DELETED>    (B) meaningful and credible evidence of 
                exposure to asbestos before December 31, 
                1982.</DELETED>

<DELETED>SEC. 125. EXPOSURE CRITERIA REQUIREMENTS.</DELETED>

<DELETED>    (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--
</DELETED>
        <DELETED>    (1) the claimant meets the minimum exposure 
        requirements under this subtitle; and</DELETED>
        <DELETED>    (2) such exposure to asbestos occurred within the 
        United States, its territories, or possessions.</DELETED>
<DELETED>    (b) Burden of Proof.--</DELETED>
        <DELETED>    (1) In general.--An asbestos claimant has the 
        burden of demonstrating meaningful and credible exposure to 
        asbestos for purposes of this subtitle.</DELETED>
        <DELETED>    (2) Evidence.--The demonstration under paragraph 
        (1) may be established by--</DELETED>
                <DELETED>    (A) an affidavit submitted by the 
                claimant, a coworker of the claimant, or a family 
                member, in the case of a deceased claimant;</DELETED>
                <DELETED>    (B) employment records;</DELETED>
                <DELETED>    (C) invoices;</DELETED>
                <DELETED>    (D) construction or other similar records; 
                or</DELETED>
                <DELETED>    (E) other credible evidence.</DELETED>
<DELETED>    (c) Rules.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>

SEC. 121. MEDICAL CRITERIA REQUIREMENTS.

    (a) Definitions.--In this section, the following definitions shall 
apply:
            (1) Asbestosis determined by pathology.--The term 
        ``asbestosis determined by pathology'' means indications of 
        asbestosis based on the pathological grading system for 
        asbestosis described in the Special Issues of the Archives of 
        Pathology and Laboratory Medicine, ``Asbestos-associated 
        Diseases'', Vol. 106, No. 11, App. 3 (October 8, 1982).
            (2) 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 based on the 
                ILO grade scale;
                    (B) bilateral pleural plaques;
                    (C) bilateral pleural thickening; or
                    (D) bilateral pleural calcification.
            (3) 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.
            (4) Certified b-reader.--The term ``certified B-reader'' 
        means an individual who is certified by the National Institute 
        of Occupational Safety and Health and whose certification by 
        the National Institute of Occupational Safety and Health is up 
        to date.
            (5) Diffuse pleural thickening.--The term ``diffuse pleural 
        thickening'' means blunting of either costophrenic angle and 
        bilateral pleural plaque or bilateral pleural thickening.
            (6) DLCO.--The term ``DLCO'' means the single-breath 
        diffusing capacity of the lung (carbon monoxide) technique used 
        to measure the volume of carbon monoxide transferred from the 
        alveoli to blood in the pulmonary capillaries for each unit of 
        driving pressure of the carbon monoxide.
            (7) 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.
            (8) 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.
            (9) ILO grade.--The term ``ILO grade'' means the 
        radiological ratings for the presence of lung changes as 
        determined from a chest x-ray, all as established from time to 
        time by the International Labor Organization.
            (10) Lower limits of normal.--The term ``lower limits of 
        normal'' means the fifth percentile of healthy populations as 
        defined in the American Thoracic Society statement on lung 
        function testing (Amer. Rev. Resp. Disease 1991, 144:1202-1218) 
        and any future revision of the same statement.
            (11) Nonsmoker.--The term ``nonsmoker'' means that the 
        claimant never smoked.
            (12) PO2.--The term ``PO2'' means the partial pressure 
        (tension) of oxygen, which measures the amount of dissolved 
        oxygen in the blood.
            (13) Pulmonary function testing.--The term ``pulmonary 
        function testing'' means spirometry testing that is in material 
        compliance with the quality criteria established by the 
        American Thoracic Society and is performed on equipment which 
        is in material compliance with the standards of the American 
        Thoracic Society for technical quality and calibration.
            (14) Substantial occupational exposure to asbestos.--The 
        term ``substantial occupational exposure'' means employment in 
        an industry and an occupation where for a substantial portion 
        of a normal work year for that occupation, the claimant--
                    (A) handled raw asbestos fibers;
                    (B) fabricated asbestos-containing products so that 
                the claimant in the fabrication process was exposed 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) worked in close proximity to other workers 
                engaged in the activities described under subparagraph 
                (A), (B), or (C) such that the claimant was exposed on 
                a regular basis to asbestos fibers.
        In this paragraph, the term ``on a regular basis'' means on a 
        frequent or recurring basis.
            (15) TLC.--The term ``TLC'' means total lung capacity, 
        which is the total volume of air in the lung after maximal 
        inspiration.
            (16) Weighted occupational exposure.--
                    (A) In general.--The term ``weighted occupational 
                exposure'' means exposure for a period of years 
                calculated according to the exposure weighting formula 
                under subparagraphs (B) through (E).
                    (B) Moderate exposure.--Subject to subparagraph 
                (E), each year that a claimant's primary occupation, 
                during a substantial portion of a normal work year for 
                that occupation, involved working in areas immediate to 
                where asbestos-containing products were being 
                installed, repaired, or removed under circumstances 
                that involved regular airborne emissions of asbestos 
                fibers, shall count as 1 year of substantial 
                occupational exposure.
                    (C) Heavy exposure.--Subject to subparagraph (E), 
                each year that a claimant's primary occupation, during 
                a substantial portion of a normal work year for that 
                occupation, involved the direct installation, repair, 
                or removal of asbestos-containing products such that 
                the person was exposed on a regular basis to asbestos 
                fibers, shall count as 2 years of substantial 
                occupational exposure.
                    (D) Very heavy exposure.--Subject to subparagraph 
                (E), each year that a claimant's primary occupation, 
                during a substantial portion of a normal work year for 
                that occupation, was in primary asbestos manufacturing, 
                a World War II shipyard, or the asbestos insulation 
                trades, such that the person was exposed on a regular 
                basis to asbestos fibers, shall count as 4 years of 
                substantial occupational exposure.
                    (E) Dates of exposure.--Each year of exposure 
                calculated under subparagraphs (B), (C), and (D) that 
                occurred before 1976 shall be counted at its full 
                value. Each year from 1976 to 1986 shall be counted as 
                \1/2\ its value. Each year after 1986 shall be counted 
                as \1/10\ its value.
                    (F) Other claims.--Individuals who do not meet the 
                provisions of subparagraphs (A) through (E) and believe 
                their post-1976 or post-1986 exposures exceeded the 
                Occupational Safety and Health Administration standard 
                may submit evidence, documentation, work history or 
                other information to substantiate noncompliance with 
                the Occupational Safety and Health Administration 
                standard (such as lack of engineering or work practice 
                controls, or protective equipment) such that exposures 
                would be equivalent to exposures before 1976 or 1986 or 
                to documented exposures in similar jobs or occupations 
                where control measures had not been implemented. Claims 
                under this subparagraph shall be evaluated on an 
                individual basis by the Medical Advisory Committee.
    (b) Medical Evidence.--
            (1) Latency.--Unless otherwise specified, all diagnoses of 
        an asbestos-related disease for a level under this section 
        shall be accompanied by--
                    (A) a statement by the physician providing the 
                diagnosis that at least 10 years have elapsed between 
                the date of first exposure to asbestos or asbestos-
                containing products and the diagnosis; or
                    (B) a history of the claimant's exposure that is 
                sufficient to establish a 10-year latency period 
                between the date of first exposure to asbestos or 
                asbestos-containing products and the diagnosis.
            (2) Diagnostic guidelines.--All diagnoses of asbestos-
        related diseases shall be based upon--
                    (A) for disease Levels I through V, in the case of 
                a claimant who was living at the time the claim was 
                filed--
                            (i) a physical examination of the claimant 
                        by the physician providing the diagnosis;
                            (ii) an evaluation of smoking history and 
                        exposure history before making a diagnosis;
                            (iii) an x-ray reading by a certified B-
                        reader; and
                            (iv) pulmonary function testing in the case 
                        of disease Levels III, IV, and V;
                    (B) for disease Levels I through V, in the case of 
                a claimant who was deceased at the time the claim was 
                filed, a report from a physician based upon a review of 
                the claimant's medical records which shall include--
                            (i) pathological evidence of the non-
                        malignant asbestos-related disease; or
                            (ii) an x-ray reading by a certified B-
                        reader;
                    (C) for disease Levels VI through X, in the case of 
                a claimant who was living at the time the claim was 
                filed--
                            (i) a physical examination by the 
                        claimant's physician providing the diagnosis; 
                        or
                            (ii) a diagnosis of such a malignant 
                        asbestos-related disease, as described in this 
                        section, by a board-certified pathologist; and
                    (D) for disease Levels VI through X, in the case of 
                a claimant who was deceased at the time the claim was 
                filed--
                            (i) a diagnosis of such a malignant 
                        asbestos-related disease, as described in this 
                        section, by a board-certified pathologist; and
                            (ii) a report from a physician based upon a 
                        review of the claimant's medical records.
            (3) Credibility of medical evidence.--To ensure the medical 
        evidence provided in support of a claim is credible and 
        consistent with recognized medical standards, a claimant under 
        this title may be required to submit--
                    (A) x-rays or computerized tomography;
                    (B) detailed results of pulmonary function tests;
                    (C) laboratory tests;
                    (D) tissue samples;
                    (E) results of medical examinations;
                    (F) reviews of other medical evidence; and
                    (G) medical evidence that complies with recognized 
                medical standards regarding equipment, testing methods, 
                and procedure to ensure the reliability of such 
                evidence as may be submitted.
    (c) Exposure Evidence.--
            (1) In general.--To qualify for any disease level, the 
        claimant shall demonstrate--
                    (A) a minimum exposure to asbestos or asbestos-
                containing products;
                    (B) the exposure occurred in the United States, its 
                territories or possessions, or while a United States 
                citizen while an employee of an entity organized under 
                any Federal or State law regardless of location, or 
                while a United States citizen while serving on any 
                United States flagged or owned ship, provided the 
                exposure results from such employment or service; and
                    (C) any additional asbestos exposure requirement 
                under this section.
            (2) General exposure requirements.--In order to establish 
        exposure to asbestos, a claimant shall present meaningful and 
        credible evidence--
                    (A) by an affidavit of the claimant;
                    (B) by an affidavit of a coworker or family member, 
                if the claimant is deceased and such evidence is found 
                in proceedings under this title to be reasonably 
                reliable;
                    (C) by invoices, construction, or similar records; 
                or
                    (D) any other credible evidence.
            (3) Take-home exposure.--
                    (A) In general.--A claimant may alternatively 
                satisfy the medical criteria requirements of this 
                section where a claim is filed by a person who alleges 
                their exposure to asbestos was the result of living 
                with a person who, if the claim had been filed by that 
                person, would have met the exposure criteria for the 
                given disease level, and the claimant lived with such 
                person for the time period necessary to satisfy the 
                exposure requirement for the claimed disease level.
                    (B) Review.--Except for claims for disease Level X 
                (mesothelioma), all claims alleging take-home exposure 
                shall be submitted as an exceptional medical claim 
                under section 121(f) for review by the Medical Advisory 
                Committee.
            (4) Waiver for workers and residents of libby, montana.--
        Because of the unique nature of the asbestos exposure related 
        to the vermiculite mining and milling operations in Libby, 
        Montana, the Court of Federal Claims shall waive the exposure 
        requirements under this subtitle for individuals who worked at 
        the vermiculite mining and milling facility in Libby, Montana, 
        or lived or worked within a 20-mile radius of Libby, Montana, 
        for at least 12 consecutive months before December 31, 2003. 
        Claimants under this section shall provide such supporting 
        documentation as the Court of Federal Claims shall require.
    (d) Asbestos Disease Levels.--
            (1) Nonmalignant level i.--To receive Level I compensation, 
        a claimant shall provide--
                    (A) a diagnosis of bilateral asbestos-related 
                nonmalignant disease; and
                    (B) evidence of 5 years cumulative occupational 
                exposure to asbestos.
            (2) Nonmalignant level ii.--To receive Level II 
        compensation, a claimant shall provide--
                    (A) a diagnosis of bilateral asbestos-related 
                nonmalignant disease with ILO grade of 1/1 or greater, 
                and showing small irregular opacities of shape or size 
                either ss, st, or tt and present in both lower lung 
                zones, or asbestosis determined by pathology, or 
                blunting of either costophrenic angle and bilateral 
                pleural plaque or bilateral pleural thickening of at 
                least grade B2 or greater, or bilateral pleural disease 
                of grade B2 or greater;
                    (B) evidence of TLC less than 80 percent or FVC 
                less than the lower limits of normal, and FEV1/FVC 
                ratio less than 65 percent;
                    (C) evidence of 5 or more weighted years of 
                substantial occupational exposure to asbestos; and
                    (D) supporting medical documentation establishing 
                asbestos exposure as a contributing factor in causing 
                the pulmonary condition in question.
            (3) Nonmalignant level iii.--To receive Level III 
        compensation a claimant shall provide--
                    (A) a diagnosis of bilateral asbestos-related 
                nonmalignant disease with ILO grade of 1/0 or greater 
                and showing small irregular opacities of shape or size 
                either ss, st, or tt and present in both lower lung 
                zones, or asbestosis determined by pathology, or 
                diffuse pleural thickening, or bilateral pleural 
                disease of B2 or greater;
                    (B) evidence of TLC less than 80 percent; FVC less 
                than the lower limits of normal and FEV1/FVC ratio 
                greater than or equal to 65 percent; or evidence of a 
                decline in FVC of 20 percent or greater, after allowing 
                for the expected decrease due to aging, and an FEV1/FVC 
                ratio greater than or equal to 65 percent documented 
                with a second spirometry;
                    (C) evidence of 5 or more weighted years of 
                substantial occupational exposure to asbestos; and
                    (D) supporting medical documentation--
                            (i) establishing asbestos exposure as a 
                        contributing factor in causing the pulmonary 
                        condition in question; and
                            (ii) excluding other more likely causes of 
                        that pulmonary condition.
            (4) Nonmalignant level iv.--To receive Level IV 
        compensation a claimant shall provide--
                    (A) diagnosis of bilateral asbestos-related 
                nonmalignant disease with ILO grade of 1/1 or greater 
                and showing small irregular opacities of shape or size 
                either ss, st, or tt and present in both lower lung 
                zones, or asbestosis determined by pathology, or 
                diffuse pleural thickening, or bilateral pleural 
                disease of B2 or greater;
                    (B) evidence of TLC less than 60 percent or FVC 
                less than 60 percent, and FEV1/FVC ratio greater than 
                or equal to 65 percent;
                    (C) evidence of 5 or more weighted years of 
                substantial occupational exposure to asbestos before 
                diagnosis; and
                    (D) supporting medical documentation--
                            (i) establishing asbestos exposure as a 
                        contributing factor in causing the pulmonary 
                        condition in question; and
                            (ii) excluding other more likely causes of 
                        that pulmonary condition.
            (5) Nonmalignant level v.--To receive Level V compensation 
        a claimant shall provide--
                    (A) diagnosis of bilateral asbestos-related 
                nonmalignant disease with ILO grade of 1/1 or greater 
                and showing small irregular opacities of shape or size 
                either ss, st, or tt and present in both lower lung 
                zones, or asbestosis determined by pathology, or 
                diffuse pleural thickening, or bilateral pleural 
                disease of B2 or greater;
                    (B)(i) evidence of TLC less than 50 percent or FVC 
                less than 50 percent, and FEV1/FVC ratio greater than 
                or equal to 65 percent;
                    (ii) DLCO less than 40 percent of predicted, plus a 
                FEV1/FVC ratio not less than 65 percent; or
                    (iii) PO2 less than 55 mm/Hg, plus a FEV1/FVC ratio 
                not less than 65 percent;
                    (C) evidence of 5 or more weighted years of 
                substantial occupational exposure to asbestos; and
                    (D) supporting medical documentation--
                            (i) establishing asbestos exposure as a 
                        contributing factor in causing the pulmonary 
                        condition in question; and
                            (ii) excluding other more likely causes of 
                        that pulmonary condition.
            (6) Malignant level vi.--
                    (A) In general.--To receive Level VI compensation a 
                claimant shall provide--
                            (i) a diagnosis of a primary colorectal, 
                        laryngeal, esophageal, pharyngeal, or stomach 
                        cancer on the basis of findings by a board 
                        certified pathologist;
                            (ii) evidence of a bilateral asbestos-
                        related nonmalignant disease;
                            (iii) evidence of 15 or more weighted years 
                        of substantial occupational exposure to 
                        asbestos; and
                            (iv) supporting medical documentation 
                        establishing asbestos exposure as a 
                        contributing factor in causing the cancer in 
                        question.
                    (B) Referral to medical advisory committee.--All 
                claims filed with respect to Level VI under this 
                paragraph shall be referred to the Medical Advisory 
                Committee for a determination that it is more probable 
                than not that asbestos exposure was a substantial 
                contributing factor in causing the other cancer in 
                question. If the claimant meets the requirements of 
                subparagraph (A), there shall be a presumption of 
                eligibility for the scheduled value of compensation 
                unless there is evidence determined by the Medical 
                Advisory Committee that rebuts that presumption.
                    (C) Request for referral to medical advisory 
                committee.--A claimant filing a claim with respect to 
                Level VI under this paragraph may request that the 
                claim be referred to the Medical Advisory Committee for 
                a determination on amount of award. In making its 
                determination under this subparagraph, the Medical 
                Advisory Committee shall consider the intensity and 
                duration of exposure, smoking history, and the quality 
                of evidence relating to exposure and smoking. Claimants 
                shall bear the burden of producing meaningful and 
                credible evidence of their smoking history as part of 
                their claim submission.
            (7) Malignant level vii.--
                    (A) In general.--To receive Level VII compensation 
                a claimant shall provide--
                            (i) a diagnosis of a primary lung cancer 
                        disease on the basis of findings by a board 
                        certified pathologist;
                            (ii) evidence of 15 or more weighted years 
                        of substantial occupational exposure to 
                        asbestos; and
                            (iii) supporting medical documentation 
                        establishing asbestos exposure as a 
                        contributing factor in causing the lung cancer 
                        in question.
                    (B) Medical advisory committee.--All claims filed 
                relating to Level VII under this paragraph shall be 
                referred to the Medical Advisory Committee for a 
                determination on the amount of award. In making its 
                determination under this subparagraph, the Medical 
                Advisory Committee shall consider the intensity and 
                duration of exposure, smoking history, and the quality 
                of evidence relating to exposure and smoking. Claimants 
                shall bear the burden of producing meaningful and 
                credible evidence of their smoking history as part of 
                their claim submission.
            (8) Malignant level viii.--
                    (A) In general.--To receive Level VIII 
                compensation, a claimant shall provide--
                            (i) a diagnosis of a primary lung cancer 
                        disease on the basis of findings by a board 
                        certified pathologist;
                            (ii) evidence of bilateral pleural placques 
                        or bilateral pleural thickening or bilateral 
                        pleural calcification;
                            (iii) evidence of 12 or more weighted years 
                        of substantial occupational exposure to 
                        asbestos; and
                            (iv) supporting medical documentation 
                        establishing asbestos exposure as a 
                        contributing factor in causing the lung cancer 
                        in question.
                    (B) Medical advisory committee.--A claimant filing 
                a claim relating to Level VIII under this paragraph may 
                request that the claim be referred to the Medical 
                Advisory Committee for a determination on amount of 
                award. In making its determination under this 
                subparagraph, the Medical Advisory Committee shall 
                consider the intensity and duration of exposure, 
                smoking history, and the quality of evidence relating 
                to exposure and smoking. Claimants shall bear the 
                burden of producing meaningful and credible evidence of 
                their smoking history as part of their claim 
                submission.
            (9) Malignant level ix.--
                    (A) In general.--To receive Level IX compensation, 
                a claimant shall provide--
                            (i) a diagnosis of a primary lung cancer 
                        disease on the basis of findings by a board 
                        certified pathologist;
                            (ii)(I) evidence of--
                                    (aa) asbestosis based on a chest x-
                                ray of at least 1/0 on the ILO scale 
                                and showing small irregular opacities 
                                of shape or size either ss, st, or tt 
                                and present in both lower lung zones; 
                                and
                                    (bb) 10 or more weighted years of 
                                substantial occupational exposure to 
                                asbestos;
                            (II) evidence of--
                                    (aa) asbestosis based on a chest x-
                                ray of at least 1/1 on the ILO scale 
                                and showing small irregular opacities 
                                of shape or size either ss, st, or tt 
                                and present in both lower lung zones; 
                                and
                                    (bb) 8 or more weighted years of 
                                substantial occupational exposure to 
                                asbestos; or
                            (III) asbestosis determined by pathology 
                        and 10 or more weighted years of substantial 
                        occupational exposure to asbestos; and
                            (iii) supporting medical documentation 
                        establishing asbestos exposure as a 
                        contributing factor in causing the lung cancer 
                        in question.
                    (B) Medical advisory committee.--A claimant filing 
                a claim with respect to Level IX under this paragraph 
                may request that the claim be referred to the Medical 
                Advisory Committee for a determination on amount of 
                award. In making its determination under this 
                subparagraph, the Medical Advisory Committee shall 
                consider the intensity and duration of exposure, 
                smoking history, and the quality of evidence relating 
                to exposure and smoking. Claimants shall bear the 
                burden of producing meaningful and credible evidence of 
                their smoking history as part of their claim 
                submission.
            (10) Malignant level x.--To receive Level X compensation, a 
        claimant shall provide--
                    (A) a diagnosis of malignant mesothelioma disease 
                on the basis of findings by a board certified 
                pathologist; and
                    (B) credible evidence of identifiable exposure to 
                asbestos resulting from--
                            (i) occupational exposure to asbestos;
                            (ii) exposure to asbestos fibers brought 
                        into the home of the claimant by a worker 
                        occupationally exposed to asbestos;
                            (iii) exposure to asbestos fibers resulting 
                        from living or working in the proximate 
                        vicinity of a factory, shipyard, building 
                        demolition site, or other operation that 
                        regularly released asbestos fibers into the air 
                        due to operations involving asbestos at that 
                        site; or
                            (iv) other identifiable exposure to 
                        asbestos fibers, in which case the claim shall 
                        be reviewed by the Medical Advisory Committee 
                        under section 121(f) for a determinination of 
                        eligibility.
    (e) Institute of Medicine Study.--
            (1) In general.--Not later than 2 years after date of 
        enactment of this Act, the Institute of Medicine of the 
        National Academy of Sciences shall complete a study of the 
        causal link between asbestos exposure and other cancers, 
        including colorectal, laryngeal, esophageal, pharyngeal, and 
        stomach cancers, except for mesothelioma and lung cancers. The 
        Institute of Medicine shall issue a report on its findings on 
        causation, which shall be transmitted to Congress, the Court of 
        Federal Claims, and the Medical Advisory Committee. The Court 
        of Federal Claims and the Medical Advisory Committee may 
        consider the results of the report for purposes of determining 
        whether asbestos exposure is a substantial contributing factor 
        under section 121(d)(6)(B).
            (2) Subsequent studies.--If the Court of Federal Claims has 
        evidence that there have been advancements in science that 
        would require additional study, the Court may request that the 
        Institute of Medicine conduct a subsequent study to determine 
        if asbestos exposure is a cause of other cancers.
    (f) Exceptional Medical Claims.--
            (1) In general.--A claimant who does not meet the medical 
        criteria requirements under this section may apply for 
        designation of the claim as an exceptional medical claim.
            (2) Application.--When submitting an application for review 
        of an exceptional medical claim, the claimant shall--
                    (A) state that the claim does not meet the medical 
                criteria requirements under this section; or
                    (B) seek designation as an exceptional medical 
                claim within 60 days after a determination that the 
                claim is ineligible solely for failure to meet the 
                medical criteria requirements under subsection (d).
            (3) Report of physician.--
                    (A) In general.--Any claimant applying for 
                designation of a claim as an exceptional medical claim 
                shall support an application filed under paragraph (1) 
                with a report from a physician meeting the requirements 
                of this section.
                    (B) Contents.--A report filed under subparagraph 
                (A) shall include--
                            (i) a complete review of the claimant's 
                        medical history and current condition;
                            (ii) such additional material by way of 
                        analysis and documentation as shall be 
                        prescribed by rule of the Court of Federal 
                        Claims; and
                            (iii) a detailed explanation as to why the 
                        claim meets the requirements of paragraph 
                        (4)(B).
            (4) Review.--
                    (A) In general.--The Court of Federal Claims shall 
                refer all applications and supporting documentation 
                submitted under paragraph (2) to the Medical Advisory 
                Committee for review for eligibility as an exceptional 
                medical claim.
                    (B) Standard.--A claim shall be designated as an 
                exceptional medical claim if the claimant, for reasons 
                beyond the control of the claimant, cannot satisfy the 
                requirements under this section, but is able, through 
                comparably reliable evidence that meets the standards 
                under this section, to show that the claimant has an 
                asbestos-related condition that is substantially 
                comparable to that of a medical condition that would 
                satisfy the requirements of a category under this 
                section.
                    (C) Additional information.--The Medical Advisory 
                Committee may request additional reasonable testing to 
                support the claimant's application.
                    (D) CT scan.--A claimant may submit a CT Scan in 
                addition to an x-ray.
            (5) Approval.--
                    (A) In general.--If the Medical Advisory Committee 
                determines that the medical evidence is sufficient to 
                show a comparable asbestos-related condition, it shall 
                issue a certificate of medical eligibility designating 
                the category of asbestos-related injury under this 
                section for which the claimant may be eligible to seek 
                compensation.
                    (B) Referral.--Upon the issuance of a certificate 
                under subparagraph (A), the Medical Advisory Committee 
                shall submit the claim to a special asbestos master, 
                who shall proceed to determine whether the claimant 
                meets the requirements for compensation under this Act.
            (6) Resubmission.--Any claimant whose application for 
        designation as an exceptional medical claim is rejected may 
        resubmit an application if new evidence becomes available. The 
        application shall identify any prior applications and state the 
        new evidence that forms the basis of the resubmission.
            (7) Rules.--The chief judge of the Court of Federal Claims 
        shall promulgate rules governing the procedures for seeking 
        designation of a claim as an exceptional medical claim.
            (8) Libby, montana.--All claims filed by Libby, Montana 
        claimants shall be designated as exceptional medical claims and 
        referred to the Medical Advisory Committee for review. In 
        reviewing the medical evidence submitted by a Libby, Montana 
        claimant in support of that claim, and before making an 
        eligibility determination for a Libby, Montana claimant, the 
        Medical Advisory Committee shall review the current medical and 
        scientific literature relating to the study, diagnosis, and 
        treatment of asbestos-related diseases resulting from exposure 
        to asbestos and other fibers found in and around Libby, 
        Montana, including public health assessments prepared by the 
        Agency for Toxic Substances and Disease Registry for the Libby 
        Asbestos Site. The Medical Advisory Committee shall take into 
        consideration the unique and serious nature of asbestos 
        exposure in Libby, Montana, including the nature of the pleural 
        disease related to asbestos exposure in Libby, when making a 
        determination of eligibility and designating the disease 
        category.

                           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 
        <DELETED>124</DELETED> 121, <DELETED>other than an injury 
        described in paragraph (2),</DELETED> shall be eligible for an 
        award according to the following schedule:
    <DELETED>  

             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
 

        <DELETED>    (2) Scheduled values for levels vi and vii.--
        </DELETED>
                <DELETED>    (A) Definition.--In this paragraph, the 
                term ``nonsmoker'' means a claimant who--</DELETED>
                        <DELETED>    (i) never smoked; or</DELETED>
                        <DELETED>    (ii) has not smoked during any 
                        portion of the 12-year period preceding the 
                        diagnosis of the lung cancer.</DELETED>
                <DELETED>    (B) Scheduled values.--In accordance with 
                subsection (a), a claimant--</DELETED>
                        <DELETED>    (i) who is a nonsmoker shall 
                        receive--</DELETED>
                                <DELETED>    (I) $50,000 for Level VI; 
                                and</DELETED>
                                <DELETED>    (II) $400,000 for Level 
                                VII; and</DELETED>
                        <DELETED>    (ii) who is not a nonsmoker shall 
                        receive--</DELETED>
                                <DELETED>    (I) $0 for Level VI; 
                                and</DELETED>
                                <DELETED>    (II) $100,000 for Level 
                                VII.</DELETED>
      

             Level                          Scheduled Condition or Disease     Scheduled Value
 
                I                             Asbestosis/Pleural Disease A     Medical Monitoring
                II                            Mixed Disease With Impairment    $20,000
                III                           Asbestosis/Pleural Disease B     $75,000
                IV                            Severe Asbestosis                $300,000
                V                             Disabling Asbestosis             $750,000
                VI                            Other Cancer                     $150,000
                VII                           Lung Cancer One                  individual evaluation;
                                                                               smokers receive between $25,000-
                                                                                $75,000;
                                                                               ex-smokers receive between
                                                                                $75,000-$225,000;
                                                                               nonsmokers receive between
                                                                                $225,000-$600,000
                VIII                          Lung Cancer With Pleural         smokers receive between $125,000-
                                             Disease                            $225,000;
                                                                               ex-smokers receive between
                                                                                $400,000-$600,000;
                                                                               nonsmokers receive between
                                                                                $609,000-$1,000,000
                IX                            Lung Cancer With Asbestosis      smokers receive $300,000-
                                                                                $400,000;
                                                                               ex-smokers receive between
                                                                                $550,000-$850,000;
                                                                               nonsmokers receive between
                                                                                $800,000-$1,000,000
                X                             Mesothelioma                     $1,000,000
 

            (2) Definitions.--In this section--
                    (A) the term ``nonsmoker'' means a claimant who 
                never smoked; and
                    (B) the term ``ex-smoker'' means a claimant who has 
                not smoked during any portion of the 12-year period 
                preceding the diagnosis of lung cancer.
            (3) Values within levels relating to lung cancer.--
                    (A) In general.--In setting values for levels 
                relating to lung cancer, the Administrator shall 
                develop a matrix of classes for each of Levels VII, 
                VIII, and IX based on--
                            (i) the smoking history of the claimant 
                        including whether the claimant currently or in 
                        the past smoked tobacco products, the duration 
                        of smoking, pack years, and whether the 
                        claimant has quit smoking and for how long;
                            (ii) the age of the claimant at diagnosis 
                        with claim values increased proportionately for 
                        claimants who are younger than the average life 
                        span and reduced for those who are older; and
                            (iii) the level and duration of asbestos 
                        exposure with those receiving the highest total 
                        dose (level x duration) receiving greater 
                        values.
                    (B) Determination of exposure.--Levels of exposure 
                shall be based on research in the fields of 
                epidemiology and industrial hygiene.
            <DELETED>(3) </DELETED>(4) Medical monitoring.--An asbestos 
        claimant with asymptomatic exposure <DELETED>or asbestosis/
        pleural disease A</DELETED>, based on the criteria under 
        section <DELETED>124(b)(1)</DELETED> 121(d)(1), shall only be 
        eligible for medical monitoring reimbursement.
            (5) Cost-of-living adjustment.--
                    (A) In general.--Beginning January 1, 2006, award 
                amounts under paragraph (1) shall be annually increased 
                by an amount equal to such dollar amount multiplied by 
                the cost-of-living adjustment, rounded to the nearest 
                $1,000 increment.
                    (B) Calculation of cost-of-living adjustment.--For 
                the purposes of subparagraph (A), the cost-of-living 
                adjustment for any calendar year shall be the 
                percentage, if any, by which the consumer price index 
                for the succeeding calendar year exceeds the consumer 
                price index for calendar year 2004.
                    (C) Consumer price index.--
                            (i) In general.--For the purposes of 
                        subparagraph (B), the consumer price index for 
                        any calendar year is the average of the 
                        consumer price index as of the close of the 12-
                        month period ending on August 31 of such 
                        calendar year.
                            (ii) Definition.--For purposes of clause 
                        (i), the term ``consumer price index'' means 
                        the consumer price index published by the 
                        Department of Labor. The consumer price index 
                        series to be used for award escalations shall 
                        include the consumer price index used for all-
                        urban consumers, with an area coverage of the 
                        United States city average, for all items, 
                        based on the 1982-1984 index based period, as 
                        published by the Department of Labor.

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 <DELETED>shall </DELETED>should receive the amount of the 
        award through structured payments from the Fund, made over a 
        period of <DELETED>not less than </DELETED>3 years, and in no 
        event more than 4 years after the date of final adjudication of 
        the claim.
            (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.
    <DELETED>(d) Treatment for Internal Revenue Purposes</DELETED>.--
<DELETED>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.
</DELETED>    (e)</DELETED> (d) 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 <DELETED>that the claimant received, or 
is entitled to receive, for the asbestos-related injury that is the 
subject of the compensation</DELETED>.
    (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 
        <DELETED>Asbestos Court</DELETED> Court of Federal Claims 
        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.
        <DELETED>    (2) Random assignment of panels.--In carrying out 
        paragraph (1), the chief judge shall--</DELETED>
                <DELETED>    (A) except as necessary to effectuate 
                subparagraph (B), assign judges to panels randomly; 
                and</DELETED>
                <DELETED>    (B) assign appeals to panels in a manner 
                that results in no judge reviewing a decision made by 
                that judge.</DELETED>
        <DELETED>    (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.</DELETED>
            (2) United states court of asbestos claims.--Each panel 
        established under this subsection may be referred to as the 
        ``United States Court of Asbestos Claims''.
            (3) Random assignment of panels.--In carrying out paragraph 
        (1), the chief judge shall assign judges to panels randomly.
            (4) Filing of appeal.--Not later than 30 days after 
        receiving notice of the decision of a panel of special asbestos 
        masters under section 114, a claimant may file an appeal with 
        the United States Court of Asbestos Claims.
<DELETED>    (b) De Novo Review.--An Asbestos Court panel shall provide 
a de novo review of the magistrate's determination and the judge's 
decision.</DELETED>
    (b) Review of Decision of Special Asbestos Master.--
            (1) In general.--The United States Court of Asbestos Claims 
        may--
                    (A) uphold the findings of fact and conclusions of 
                law of the special asbestos master and sustain the 
                special asbestos master's decision;
                    (B) set aside any findings of fact or conclusion of 
                law of the special asbestos master found to be 
                arbitrary, capricious, an abuse of discretion, or 
                otherwise not in accordance with law and issue its own 
                findings of fact and conclusions of law; or
                    (C) remand the petition to the special asbestos 
                master for further action in accordance with the 
                direction of the United States Court of Asbestos 
                Claims.
            (2) Remands.--The United States Court of Asbestos Claims 
        may allow not more than 30 days for remands under paragraph 
        (1)(C).
            (3) Final decision.--If the United States Court of Asbestos 
        Claims makes a final decision after review as provided under 
        paragraph (1) (A) or (B), the Court shall notify the 
        Administrator to award the claimant an amount as determined by 
        the United States Court of Asbestos Claims.
            (4) Claim extinguished.--The acceptance of payment of an 
        award as provided under this subsection shall extinguish all 
        claims related to such payment.
    (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.--<DELETED>An Asbestos 
Court</DELETED> A Court of Federal Claims panel shall apply the Federal 
Rules of Appellate Procedures to all proceedings before the panel.
    (e) Decision of Panel.--<DELETED>An Asbestos Court</DELETED> A 
Court of Federal Claims 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) Class action trust.--The term ``class action trust'' 
        means a trust or similar entity established to hold assets for 
        the payment of asbestos claims asserted against a debtor or 
        participating defendant, under a settlement that--
                    (A) is a settlement of class action claims under 
                rule 23 of the Federal Rules of Civil Procedure; and
                    (B) has been approved by a final judgment of a 
                United States District Court before the date of 
                enactment of this Act.
            <DELETED>(2)</DELETED> (3) 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.
            <DELETED>(3)</DELETED> (4) 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.
            <DELETED>(4)</DELETED> (5) 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.
            <DELETED>(5)</DELETED> (6) 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.
            <DELETED>(6)</DELETED> (7) 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 or as a result of changes in 
                insurance reserves required by contract or 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.
            <DELETED>(7)</DELETED> (8) 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, <DELETED>for any purpose, 
        including administering and paying asbestos claims</DELETED> in 
        whole or in part to provide compensation for asbestos claims.
            <DELETED>(8)</DELETED> (9) 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 <DELETED>$45,000,000,000 
        </DELETED>$52,000,000,000. The Administrator shall have the 
        authority to allocate the contributions assessed from the 
        defendant participants among the tiers.
    (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
                <DELETED>    (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.</DELETED>
                    (C) the bankruptcy court presiding over the 
                business entity's case determines, after notice and a 
                hearing upon motion filed by the entity within 30 days 
                of the effective date of this Act, which motion shall 
                be supported by--
                            (i) an affidavit or declaration of the 
                        Chief Executive Officer, Chief Financial 
                        Officer, or Chief Legal Officer of the business 
                        entity; and
                            (ii) copies of the entity's public 
                        statements and securities filings made in 
                        connection with the entity's filing for chapter 
                        11 protection that asbestos liability was not 
                        the sole or precipitating cause of the entity's 
                        chapter 11 filing. Notice of such motion shall 
                        be as directed by the bankruptcy court and the 
                        hearing shall be limited to consideration of 
                        the question of whether or not asbestos 
                        liability was the sole or precipitating cause 
                        of the entity's chapter 11 filing. The 
                        bankruptcy court shall hold a hearing and make 
                        its determination with respect to the motion 
                        within 60 days after the date the motion is 
                        filed. In making its determination, the 
                        bankruptcy court shall take into account the 
                        affidavits, public statements, and securities 
                        filings, and other information, if any, 
                        submitted by the entity and all other facts and 
                        circumstances presented by an objecting party.
                            (iii) Judicial review.--Any review of this 
                        determination must be an expedited appeal and 
                        limited to whether the decision was against the 
                        weight of the evidence.
            <DELETED>(2)</DELETED> (3) 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.
            <DELETED>(3)</DELETED> (4) 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.
            <DELETED>(4)</DELETED> (5) Offsets.--
                    (A) Payments by insurers.--To the extent that a 
                bankrupt business entity or debtor 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. If a debtor and affiliated group includes a 
                person in respect of whose liabilities for asbestos 
                claims a class action trust has been established, there 
                shall be excluded from the 2002 revenues of such debtor 
                and affiliated group--
                            (i) all revenues of the person in respect 
                        of whose liabilities for asbestos claims the 
                        class action trust was established, and
                            (ii) all revenues of the debtor and 
                        affiliated group attributable to the historical 
                        business operations or assets of such person, 
                        regardless of whether such business operations 
                        or assets were owned or conducted during the 
                        year 2002 by such person or by any other person 
                        included within such debtor and affiliated 
                        group.
    (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, <DELETED>1.5005</DELETED> 
                        1.5184 percent of the debtor's 2002 revenues.
                            (ii) Years 6 through 8, <DELETED>1.3504</DELETED> 
                        1.3666 percent of the debtor's 2002 revenues.
                            (iii) Years 9 through 11, <DELETED>1.2154</DELETED> 
                        1.2147 percent of the debtor's 2002 revenues.
                            (iv) Years 12 through 14, <DELETED>1.0938</DELETED> 
                        1.0629 percent of the debtor's 2002 revenues.
                            (v) Years 15 through 17, <DELETED>.9845</DELETED> 
                        .9111 percent of the debtor's 2002 revenues.
                            (vi) Years 18 through 20, <DELETED>.8860</DELETED> 
                        .7592 percent of the debtor's 2002 revenues.
                            (vii) Years 21 through 
                        <DELETED>23</DELETED>26, <DELETED>.7974</DELETED> 
                        .6074 percent of the debtor's 2002 revenues.
                            <DELETED>(viii) Years 24 through 26, .7177 
                        percent of the debtor's 2002 revenues.
                        </DELETED>    (ix)</DELETED> (viii) Year 27, 
                        <DELETED>.1794</DELETED> .1518 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.
            (5) Class action trust.--The assets of any class action 
        trust that has been established in respect of the liabilities 
        for asbestos claims of any person included within a debtor and 
        affiliated group that has been assigned to Tier I (exclusive of 
        any assets needed to pay previously incurred expenses and 
        asbestos claims reduced to a final order or judgment within the 
        meaning of section 403(d)(1) before the date of enactment of 
        this Act) shall be transferred to the Fund not later than 6 
        months after the date of enactment of this Act.
    (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) <DELETED>SUBTIER</DELETED> 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.--Subject to section 223(f), <DELETED>The</DELETED> 
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.--<DELETED>A</DELETED> After an initial 
                hardship adjustment is granted under this paragraph, 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, <DELETED>3</DELETED> 6 
                percent of the total annual contributions required of 
                all defendant participants.
                    (E) Reinstatement.--
                            (i) In general.--Following the expiration 
                        of the hardship adjustment period provided for 
                        under this section and during the mandatory 
                        funding period, the Administrator shall 
                        annually determine whether there has been a 
                        material change in the financial condition of 
                        the defendant such that the Administrator may, 
                        consistent with the policies and legislative 
                        intent underlying this Act, reinstate under 
                        terms and conditions established by the 
                        Administrator any part of all of the 
                        defendant's contribution under the statutory 
                        allocation that was not paid during the 
                        hardship adjustment term.
            (3) Inequity adjustments.--
                <DELETED>    (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.</DELETED>
                    (A) In general.--A defendant--
                            (i) may qualify for an adjustment based on 
                        inequity by demonstrating that the amount of 
                        contribution of the defendant under the 
                        statutory allocation is exceptionally 
                        inequitable--
                                    (I) 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;
                                    (II) when compared to the median 
                                contribution rate for all defendants in 
                                the same tier; or
                                    (III) when measured against the 
                                percentage of the prior asbestos 
                                expenditures of the defendant that were 
                                incurred with respect to claims that 
                                neither resulted in an adverse judgment 
                                against the defendant, nor were the 
                                subject of a settlement that required a 
                                payment to a plaintiff by or on behalf 
                                of that defendant; and
                            (ii) shall qualify for a two-tier main tier 
                        and a two-tier sub-tier adjustment reducing the 
                        defendant's contribution based on inequity by 
                        demonstrating that not less than 95 percent of 
                        such person's prior asbestos expenditures arose 
                        from claims related to the manufacture and sale 
                        of railroad locomotives and related products, 
                        so long as such person's manufacture and sale 
                        of railroad locomotives and related products is 
                        temporally and causally remote. For purposes of 
                        this clause, a person's manufacture and sale of 
                        railroad locomotives and related products shall 
                        be deemed to be temporally and causally remote 
                        if the asbestos claims historically and 
                        generally filed against such person relate to 
                        the manufacture and sale of railroad 
                        locomotives and related products by an entity 
                        dissolved more than 25 years prior to the date 
                        of enactment of this Act.
                    (B) Contribution rate.--For purposes of 
                subparagraph (A), the contribution rate of a defendant 
                is the contribution amount of the defendant as a 
                percentage of such defendant's gross revenues for the 
                year ending December 31, 2002.
                    <DELETED>(B)</DELETED> (C) Term.--Subject to the 
                annual availability of funds in the Orphan Share 
                Reserve Account established under section 
                223(<DELETED>e</DELETED> h), an inequity adjustment 
                granted by the Administrator under this subsection 
                shall remain in effect <DELETED>for the life of the 
                Fund</DELETED> for a term of 3 years.
                    <DELETED>(C)</DELETED> (D) 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 
                        <DELETED>2</DELETED> 4 percent of the total 
                        annual contributions required of all defendant 
                        participants.
                    (E) Renewal.--A defendant may renew an inequity 
                adjustment every 3 years by demonstrating that the 
                adjustment remains justified.
                    (F) Reinstatement.--
                            (i) In general.--Following the termination 
                        of an inequity adjustment under subparagraph 
                        (A), and during the mandatory funding period of 
                        the Fund, the Administrator shall annually 
                        determine whether there has been a material 
                        change in conditions which would support a 
                        finding that the amount of the defendant's 
                        contribution under the statutory allocation was 
                        not inequitable. Based on this determination, 
                        the Administrator may, consistent with the 
                        policies and legislative intent underlying this 
                        Act, reinstate any or all of the contribution 
                        requirements of the defendant as if the 
                        inequity adjustment had not been granted for 
                        that 3-year period.
                            (ii) Terms and conditions.--In the event of 
                        a reinstatement under clause (i), the 
                        Administrator may require the defendant to pay 
                        any part or all of amounts not contributed due 
                        to the inequity adjustment on such terms and 
                        conditions as established by the Administrator.
            (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 <DELETED>this subtitle</DELETED> this Act, 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.
        <DELETED>    (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.</DELETED>
            (4) Application of foia.--
                    (A) In general.--Section 552 of title 5, United 
                States Code (commonly referred to as the Freedom of 
                Information Act) shall apply to the Office of Asbestos 
                Injury Claims Resolution.
                    (B) Confidentiality.--Any person may designate any 
                record submitted under this subsection as a 
                confidential commercial or financial record for 
                purposes of section 552 of title 5, United States Code. 
                The Administrator shall adopt procedures for 
                designating such records 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.

      <DELETED>Subtitle B--Asbestos Insurers Commission</DELETED>

<DELETED>SEC. 211. ESTABLISHMENT OF ASBESTOS INSURERS 
              COMMISSION.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (b) Membership.--</DELETED>
        <DELETED>    (1) Appointment.--The Commission shall be composed 
        of 5 members who shall be appointed by the President, after 
        consultation with--</DELETED>
                <DELETED>    (A) the majority leader of the 
                Senate;</DELETED>
                <DELETED>    (B) the minority leader of the 
                Senate;</DELETED>
                <DELETED>    (C) the Speaker of the House of 
                Representatives; and</DELETED>
                <DELETED>    (D) the minority leader of the House of 
                Representatives.</DELETED>
        <DELETED>    (2) Qualifications.--</DELETED>
                <DELETED>    (A) Expertise.--Members of the Commission 
                shall have sufficient expertise to fulfill their 
                responsibilities under this subtitle.</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (4) Period of appointment.--Members shall be 
        appointed for the life of the Commission.</DELETED>
        <DELETED>    (5) Vacancies.--Any vacancy in the Commission 
        shall be filled in the same manner as the original 
        appointment.</DELETED>
        <DELETED>    (6) Chairman.--The Commission shall select a 
        Chairman from among its members.</DELETED>
<DELETED>    (c) Meetings.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Subsequent meetings.--The Commission shall 
        meet at the call of the Chairman as necessary to accomplish the 
        duties under section 212.</DELETED>
        <DELETED>    (3) Quorum.--No business may be conducted or 
        hearings held without the participation of all of the members 
        of the Commission.</DELETED>

<DELETED>SEC. 212. DUTIES OF ASBESTOS INSURERS COMMISSION.</DELETED>

<DELETED>    (a) Determination of Insurer Liability for Asbestos 
Injuries.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Allocation agreement.--</DELETED>
                <DELETED>    (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--</DELETED>
                        <DELETED>    (i) the Commission;</DELETED>
                        <DELETED>    (ii) the Committee on the 
                        Judiciary of the Senate; and</DELETED>
                        <DELETED>    (iii) the Committee on the 
                        Judiciary of the House of 
                        Representatives.</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (3) General provisions.--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (4) Assessment criteria.--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (B) Participant tiers.--Contributions 
                shall be determined by assigning mandatory insurer 
                participants into tiers, which shall be determined and 
                defined based on--</DELETED>
                        <DELETED>    (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;</DELETED>
                        <DELETED>    (ii) net paid losses for asbestos 
                        injuries compared to all such losses for the 
                        insurance industry;</DELETED>
                        <DELETED>    (iii) net carried reserve level 
                        for asbestos claims on the most recent 
                        financial statement of the insurer participant; 
                        and</DELETED>
                        <DELETED>    (iv) future liability.</DELETED>
                <DELETED>    (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.</DELETED>
<DELETED>    (b) Procedure.--</DELETED>
        <DELETED>    (1) Notice to participants.--Not later than 30 
        days after the initial meeting of the Commission, the 
        Commission shall--</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (2) Response required.--</DELETED>
                <DELETED>    (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--</DELETED>
                        <DELETED>    (i) 30 days after the receipt of 
                        direct notice; or</DELETED>
                        <DELETED>    (ii) 30 days after the publication 
                        of notice in the Federal Register.</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (3) Notice of initial determination.--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (4) Review period.--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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).</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (6) Notice of final determination.--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (B) Judicial review.--A participant has a 
                right to obtain judicial review of the Commission's 
                final determination under title III.</DELETED>
<DELETED>    (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).</DELETED>
<DELETED>    (d) Report.--</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) the Committee on the Judiciary of the 
                Senate;</DELETED>
                <DELETED>    (B) the Committee on the Judiciary of the 
                House of Representatives; and</DELETED>
                <DELETED>    (C) the Court of Asbestos 
                Claims.</DELETED>
        <DELETED>    (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.</DELETED>

<DELETED>SEC. 213. POWERS OF ASBESTOS INSURERS COMMISSION.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (d) Gifts.--The Commission may not accept, use, or dispose 
of gifts or donations of services or property.</DELETED>

<DELETED>SEC. 214. PERSONNEL MATTERS.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (c) Staff.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>

<DELETED>SEC. 215. NONAPPLICATION OF FOIA AND CONFIDENTIALITY OF 
              INFORMATION.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>

                Subtitle B--Asbestos Insurers Commission

SEC. 210. DEFINITIONS.

    In this subtitle, the term ``captive insurance company'' means a 
company--
            (1) whose entire beneficial interest is owned on the date 
        of enactment of this Act, directly or indirectly, by a 
        defendant participant or by the ultimate parent or the 
        affiliated group of a defendant participant;
            (2) whose primary commercial business during the period 
        from calendar years 1940 through 1986 was to provide insurance 
        to its ultimate parent or affiliated group, or any portion of 
        the affiliated group or a combination thereof; and
            (3) that was incorporated or operating no later than 
        December 31, 2002.

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.--
                            (i) In general.--No member of the 
                        Commission appointed under paragraph (1) may be 
                        an employee or immediate family member of an 
                        employee of an insurer participant. No member 
                        of the Commission may be a former employee or 
                        shareholder of any insurer participant, unless 
                        that is fully disclosed.
                            (ii) Definition.--As used in clause (i), 
                        the term ``shareholder'' shall not include a 
                        broadly based mutual fund that may, from time-
                        to-time include the stocks of insurer 
                        participants as a portion of its overall 
                        holdings.
                    (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.--
                    (A) Definitions.--For the purposes of this Act, the 
                terms ``insurer participant'' and ``mandatory insurer 
                participant'' shall, unless stated otherwise, include 
                direct insurers and reinsurers, as well as any run-off 
                entity established, in whole or in part, to review and 
                pay asbestos claims.
                    (B) Determination.--The Commission shall determine 
                the amount that each insurer participant will be 
                required to pay into the Fund to satisfy its 
                contractual obligation to compensate claimants for 
                asbestos injuries.
                    (C) Scope.--Every insurer, reinsurer and run-off 
                entity with asbestos-related obligations in the United 
                States shall be included within the Commission's 
                authority under this Act, including its allocation 
                determinations, and shall be required to fulfill its 
                allocation obligation, without regard as to whether it 
                is licensed in the United States.
            (2) Allocation agreement.--
                    (A) In general.--Not later than 30 days after the 
                Commission issues its initial determination, the direct 
                insurer participants or reinsurer participants may 
                submit an allocation agreement, approved by all of the 
                participants in the applicable group, 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 $52,000,000,000.
                    (B) Declining payments.--Subject to section 223(f), 
                or unless otherwise provided under this Act, 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.--Unless otherwise provided 
                under this Act, 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 arising from a policy of liability insurance 
                or contract of liability reinsurance or retrocessional 
                reinsurance shall be mandatory insurer participants in 
                the Fund. Other insurers shall be exempt from mandatory 
                payments.
                    (B) Participant allocation formula.--
                            (i) In general.--Contributions shall be 
                        determined by establishing an individual 
                        contribution obligation for each insurer 
                        participant. The Commission shall establish 
                        such contribution obligations on an equitable 
                        basis, considering and weighting, as 
                        appropriate (but exclusive of workers' 
                        compensation), such factors as--
                                    (I) historic premium for lines of 
                                insurance associated with asbestos 
                                exposure over relevant periods of time;
                                    (II) recent loss experience for 
                                asbestos liabilities;
                                    (III) amounts reserved for asbestos 
                                liabilities;
                                    (IV) the likely costs to each 
                                insurer participant of its future 
                                liabilities under applicable insurance 
                                policies; and
                                    (V) any other factor the Commission 
                                may determine is relevant and 
                                appropriate.
                            (ii) Determination of reserves.--For the 
                        purpose of determining reserves, the reserves 
                        of a United States licensed reinsurer that is 
                        wholly owned by a United States licensed direct 
                        insurer shall be included as part of the direct 
                        insurer's reserves when the reinsurer's 
                        financial results are included as part of the 
                        direct insurer's United States operations, as 
                        reflected in footnote 29 of its filings with 
                        the National Association Insurance 
                        Commissioners or in published financial 
                        statements prepared in accordance with 
                        generally accepted accounting principles.
                    (C) Total fund contributions.--
                            (i) Total fund contribution obligations for 
                        direct insurer participants, licensed in the 
                        united states.--The funding contribution 
                        obligations of direct insurer participants 
                        licensed or domiciled in the United States 
                        shall be a portion of the $52,000,000,000 total 
                        insurer participant obligation set forth in 
                        paragraph (3)(A). That total amount shall be 
                        determined by the Administrator under the 
                        assessment criteria as set forth in this 
                        section.
                            (ii) Total fund contribution obligations 
                        for all other insurer participants.--The 
                        funding contribution obligations of all insurer 
                        participants, other than direct insurer 
                        participants licensed or domiciled in the 
                        United States, shall be a portion of the 
                        $52,000,000,000 total obligation set forth in 
                        paragraph (3)(A). That total amount shall be 
                        determined by the Administrator under the 
                        assessment criteria as set forth in this 
                        section, and take into account that 
                        contributions shall not be required from 
                        reinsurers whose reserves were included in 
                        clause (i). In determining the allocation 
                        obligations of run-off entities specifically 
                        created, in whole or in part, to review and pay 
                        asbestos claims, the Commission shall use 
                        accounting standards equivalent to those 
                        required for United States licensed direct 
                        insurers.
                    (D) Captive insurance companies.--No contribution 
                to the Fund shall be assessed from a captive insurance 
                company, unless and only to the extent a captive 
                insurance company, on the date of enactment of this 
                Act, has liability, directly or indirectly, for any 
                asbestos claim of a person or persons other than and 
                unaffiliated with its ultimate parent or affiliated 
                group or pool in which the ultimate parent participates 
                or participated, or unaffiliated with a person that was 
                its ultimate parent or a member of its affiliated group 
                or pool at the time the relevant insurance or 
                reinsurance was issued by the captive insurance 
                company.
                    (E) Payment schedule.--
                            (i) In general.--Any final determination of 
                        assessment issued under subparagraph (B) shall 
                        allow for periodic payments, if 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. Unless otherwise 
                        provided under this Act, when an insurer 
                        participant has fully paid its allocation 
                        obligation to the Fund, it shall have no 
                        further financial responsibilities under this 
                        Act.
                            (ii) Expedited payments.--Any mandatory 
                        insurer participant, irrespective of whether 
                        that participant is a direct insurer, may make 
                        a lump-sum payment, or expedited payments, to 
                        the Fund. Such payment or payments shall 
                        reflect the insurer participant's allocation 
                        obligation on a net present value basis at the 
                        time the payment is made.
                            (iii) Special payment schedule for direct 
                        insurers.--Without regard to clause (i), every 
                        insurer participant that is a direct insurer 
                        shall pay 100 percent of its allocated amount 
                        within 3 years after the effective date of this 
                        Act. The amount paid by each such direct 
                        insurer in each of the 3 years shall equal \1/
                        3\ of its total obligation.
                    (F) Judicial review.--An interested party may 
                obtain judicial review of any final regulation of the 
                Commission with regard to an allocation formula 
                established under this section. The review shall be 
                governed by the requirements and procedures of section 
                302.
                    (G) Financial hardships.--Under expedited 
                procedures established by the Commission, an insurer 
                participant may seek adjustment of the amount of its 
                contribution based on severe financial hardship. The 
                Commission 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.
    (b) Procedure.--
            (1) Notice to participants.--Not later than 30 days after 
        the initial meeting of the Commission, or an alternative date 
        determined consistent with the Commission's rulemaking process, 
        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, including at the 
                Commission's discretion newly calculated asbestos 
                reserves undertaken under a common methodology 
                established by the Commission; 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, or an alternative 
                date determined consistent with the Commission's 
                rulemaking process, 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, including the provision of an offset 
                credit for an insurer participant for the amount of any 
                asbestos-related payments it made or was legally 
                obligated to make, including payments released from an 
                escrow, as the result of a bankruptcy judicially 
                confirmed after May 22, 2003, but before the date of 
                enactment of this Act.
                    (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). The Commission shall adopt procedures for revising 
                initial assessments based on information received under 
                subparagraphs (A) and (B), including a provision 
                requiring an offset credit for an insurer participant 
                for the amount of any asbestos-related payments it made 
                or was legally obligated to make, including payments 
                released from an escrow, as the result of a bankruptcy 
                confirmed after May 22, 2003, but before the date of 
                enactment of this Act. 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) Escrow payments.--Without regard to an insurer 
        participant's allocation obligation under this section, any 
        escrow or similar account established before the date of 
        enactment of this Act by an insurer participant in connection 
        with an asbestos trust fund that has not been judicially 
        confirmed by the date of enactment of this Act shall be the 
        property of the insurer participant and returned to that 
        insurer participant.
            (7) 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 Federal 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) Rulemaking.--The Commission shall promulgate such rules and 
regulations as necessary to implement its authority under this Act, 
including regulations governing an allocation formula. Such rules and 
regulations shall be promulgated after providing interested parties 
with the opportunity for notice and comment. Before the adoption of a 
regulation for an allocation formula, the Commission shall, as 
authorized in subsection (b), hold informational hearings to assist in 
its development of allocation factors and requirements. The Commission 
shall also hold a hearing on any proposed regulation establishing an 
allocation formula, before the Commission's adoption of a final 
regulation.
    (b) 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.
    (c) 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.
    (d) 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.
    (e) Gifts.--The Commission may not accept, use, or dispose of gifts 
or donations of services or property.
    (f) Expert Advice.--In carrying out its responsibilities, the 
Commission may enter into such contracts and agreements as the 
Commission determines necessary to obtain expert advice and analysis.
    (g) Insurer Participant Payments Prior to Allocation Assessment 
Determination.--The Administrator may require insurer participants to 
make payments to the Fund prior to the Commission having established 
its allocation formula, except that no such obligation shall exceed the 
ultimate financial obligation of a direct insurer under the final 
allocation formula. Any such prior payments shall be made solely for 
the purpose of assuring the ability of the Fund to meet its financial 
obligations. Such payments shall be assessed on an equitable basis and 
shall be equivalent, in total, to the funding obtained from the 
defendant participants for the same period of time. All such payments 
shall be credited against an insurer participant's ultimate financial 
obligation to the Fund.
    (h) Cause of Action.--In addition to the authority granted under 
section 224, the Administrator shall have the authority to pursue a 
civil action in Federal court against any reinsurer that fails to 
comply with its obligations under this Act and shall be able to seek 
treble damages for such failure. For any amounts the Administrator is 
unable to collect from a reinsurer, the direct insurer shall be 
obligated.

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. APPLICATION OF FOIA.

    (a) In General.--Section 552 of title 5, United States Code 
(commonly referred to as the Freedom of Information Act) shall apply to 
the Commission.
    (b) Confidentiality.--Any person may designate any record submitted 
under this subtitle as a confidential commercial or financial record 
for purposes of section 552 of title 5, United States Code. The 
Chairman of the Commission shall adopt procedures for designating such 
records as confidential.

<DELETED>SEC. 216. TERMINATION OF ASBESTOS INSURERS 
              COMMISSION.</DELETED>

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

<DELETED>SEC. 217. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (b) Availability.--Any sums appropriated under the 
authorization contained in this section shall remain available, without 
fiscal year limitation, until expended.</DELETED>

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. EXPENSES AND COSTS OF COMMISSION.

    All expenses and costs of the Commission shall be paid from the 
Fund.

        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 
        <DELETED>section 6(a) of</DELETED> the Toxic Substances Control 
        Act (15 U.S.C. <DELETED>2605(a)</DELETED> 2601 et seq.), 
        relating to the manufacture, importation, processing, disposal 
        and distribution in commerce of asbestos-containing products, 
        the Administrator <DELETED>may refer the matter</DELETED> shall 
        refer the matter in writing within 30 days after receiving that 
        information to the Administrator of the Environmental 
        Protection Agency and the United States Attorney for possible 
        civil or criminal penalties <DELETED>under section 16(a) of the 
        Toxic Substances Control Act (15 U.S.C. 2615(a))</DELETED> , 
        including those under section 17 of the Toxic Substances 
        Control Act (15 U.S.C. 2616), and to the appropriate State 
        authority with jurisdiction to investigate asbestos matters.
            (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 
        <DELETED>section 112(d) of</DELETED> the Clean Air Act (42 
        U.S.C. <DELETED>7412(d)</DELETED> 7401 et seq.), relating to 
        asbestos as a hazardous air pollutant, the Administrator 
        <DELETED>may refer the matter</DELETED> shall refer the matter 
        in writing within 30 days after receiving that information to 
        the Administrator of the Environmental Protection Agency and 
        the United States Attorney for possible criminal and civil 
        penalties, including those under section 113 of the Clean Air 
        Act (42 U.S.C. 7413), and to the appropriate State authority 
        with jurisdiction to investigate asbestos matters.
            (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 <DELETED>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)).</DELETED> shall 
        refer the matter in writing within 30 days after receiving that 
        information and refer the matter to--
                    (A) the United States Attorney for possible 
                criminal prosecution under section 5(a) of such Act (29 
                U.S.C. 654(a));
                    (B) the Secretary of Labor for possible civil 
                penalties under section 17 (a) through (d) of such Act 
                (29 U.S.C. 666 (a) through (d)); and
                    (C) the Assistant Secretary for the Occupational 
                Safety and Health Commission, and the appropriate State 
                authority with jurisdiction to investigate asbestos 
                matters, for possible civil or criminal penalties, 
                including those under section 17 of the Occupational 
                Safety and Health Act of 1970 (29 U.S.C. 666).
            (4) Review of federal sentencing guidelines for 
        environmental crimes related to asbestos.--Under section 994 of 
        title 28, United States Code, and in accordance with this 
        section, the United States Sentencing Commission shall review 
        and amend, as appropriate, the United States Sentencing 
        Guidelines and related policy statements to ensure that--
                    (A) appropriate changes are made within the 
                guidelines to reflect any statutory amendments that 
                have occurred since the time that the current guideline 
                was promulgated;
                    (B) the base offense level, adjustments and 
                specific offense characteristics contained in section 
                2Q1.2 of the United States Sentencing Guidelines 
                (relating to mishandling of hazardous or toxic 
                substances or pesticides; record keeping, tampering, 
                and falsification; and unlawfully transporting 
                hazardous materials in commerce) are increased as 
                appropriate to ensure that future asbestos-related 
                offenses reflect the seriousness of the offense, the 
                harm to the community, the need for ongoing reform, and 
                the highly regulated nature of asbestos;
                    (C) the base offense level, adjustments and 
                specific offense characteristics are sufficient to 
                deter and punish future activity and are adequate in 
                cases in which the relevant offense conduct--
                            (i) involves asbestos as a hazardous or 
                        toxic substance; and
                            (ii) occurs after the date of enactment of 
                        this Act;
                    (D) the adjustments and specific offense 
                characteristics contained in section 2B1.1 of the 
                United States Sentencing Guidelines related to fraud, 
                deceit and false statements, adequately take into 
                account that asbestos was involved in the offense, and 
                the possibility of death or serious bodily harm as a 
                result;
                    (E) the guidelines that apply to organizations in 
                chapter 8 of the United States Sentencing Guidelines, 
                are sufficient to deter and punish organizational 
                criminal misconduct that involves the use, handling, 
                purchase, sale, disposal, or storage of asbestos; and
                    (F) the guidelines that apply to organizations in 
                chapter 8 of the United States Sentencing Guidelines, 
                are sufficient to deter and punish organizational 
                criminal misconduct that involves fraud, deceit, or 
                false statements against the Asbestos Insurers 
                Commission or the Office of Asbestos Injury Claim 
                Resolution.

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) <DELETED>Limitations on</DELETED> 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 unless otherwise provided.
    (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) Lockbox for Severe Asbestos-Related Injury Claimants.--
            (1) In general.--Within the Fund, the Administrator shall 
        establish the following accounts:
                    (A) A Mesothelioma Account, which shall be used 
                solely to make payments to claimants eligible for an 
                award under the criteria of Level X.
                    (B) A Lung Cancer Account, which shall be used 
                solely to make payments to claimants eligible for an 
                award under the criteria of Level IX.
                    (C) A Severe Asbestosis Account, which shall be 
                used solely to make payments to claimants eligible for 
                an award under the criteria of Level V.
                    (D) A Moderate Asbestosis Account, which shall be 
                used solely to make payments to claimants eligible for 
                an award under the criteria of Level IV.
            (2) Allocation.--The Administrator shall allocate to each 
        of the 4 accounts established under paragraph (1) a portion of 
        contributions to the Fund adequate to compensate all 
        anticipated claimants for each account. Within 60 days after 
        the date of enactment of this Act, and periodically during the 
        life of the Fund, the Administrator shall determine an 
        appropriate amount to allocate to each account after consulting 
        appropriate epidemiological and statistical studies.
    (f) Contingent Call for Additional Mandatory Funding.--
            (1) In general.--Notwithstanding sections 202(a)(2) and 
        212(a)(3)(A), unless the Administrator certifies under this 
        subsection that there are adequate funds available to 
        compensate past, pending, and projected future claimants at the 
        scheduled award values provided in section 131(b), the 
        Administrator shall assess additional contributions from all 
        participants during first 27 years of the Fund (in this 
        section, the ``mandatory funding period''), as provided in this 
        subsection.
            (2) Allocation.-- Any additional contributions assessed 
        under this subsection shall be allocated among each participant 
        as provided under paragraphs (4) and (5).
            (3) Reduction adjustment certification.--
                    (A) In general.--Before making any reduction 
                adjustment under section 204(a) or section 
                212(a)(3)(B), the Administrator shall certify, after 
                consultation with appropriate experts, that during the 
                time period in which such reduction adjustment would 
                apply there will be adequate funds available to 
                compensate past, pending, and projected future 
                claimants at the scheduled award values provided in 
                section 131(b) of this Act.
                    (B) Initial notice.--Before making any 
                certification under subparagraph (A), the Administrator 
                shall publish a notice in the Federal Register of the 
                proposed certification, including a description and 
                explanation of the Administrator's analysis supporting 
                the certification of the Administrator.
                    (C) Comments from participants.--Not later than 60 
                days after the publication of the notice under 
                subparagraph (B), a participant may provide the 
                Administrator with additional information to support a 
                determination that additional contributions from 
                participants are not required.
                    (D) Final certification.--
                            (i) In general.--The Administrator shall 
                        publish a notice in the Federal Register of the 
                        final certification after consideration of all 
                        comments submitted under subparagraph (C).
                            (ii) Written notice.--Not later than 30 
                        days of publishing a final certification under 
                        clause (i), the Administrator shall provide 
                        each participant with notice of that 
                        participant's final contribution assessment 
                        after application of any reduction adjustment 
                        under section 204(a) or section 212(a)(3)(B), 
                        subject to paragraphs (4) and (5).
            (4) Defendant participants.--
                    (A) In general.--Any additional contributions from 
                the defendant participants under paragraph (1) shall be 
                allocated in accordance with subparagraphs (B) through 
                (H).
                    (B) Years 6 through 8.--If the Administrator fails 
                to certify that there are adequate funds during years 6 
                through 8 of the mandatory funding period, the 
                Administrator shall maintain after year 5 of the 
                mandatory funding period the contribution levels 
                assessed under section 203 and not make any reduction 
                adjustments as provided in section 204(a) for years 6 
                through 8.
                    (C) Years 9 through 11.--If the Administrator fails 
                to certify that there are adequate funds during years 9 
                through 11 of the mandatory funding period, the 
                Administrator shall maintain after year 8 of the 
                mandatory funding period the contribution levels 
                assessed under section 203 and not make any reduction 
                adjustments as provided in section 204(a) for years 9 
                through 11.
                    (D) Years 12 through 14.--If the Administrator 
                fails to certify that there are adequate funds during 
                years 12 through 14 of the mandatory funding period, 
                the Administrator shall maintain after year 11 of the 
                mandatory funding period the contribution levels 
                assessed under section 203 and not make reduction 
                adjustments as provided in section 204(a) for years 12 
                through 14.
                    (E) Years 15 through 17.--If the Administrator 
                fails to certify that there are adequate funds 
                available during years 15 through 17 of the mandatory 
                funding period, the Administrator shall maintain after 
                year 14 of the mandatory funding period the 
                contribution levels assessed under section 203 and not 
                make any reduction adjustments as provided in section 
                204(a) for years 15 through 17.
                    (F) Years 18 through 20.--If the Administrator 
                fails to certify that there are adequate funds 
                available during years 18 through 20 of the mandatory 
                funding period, the Administrator shall maintain after 
                year 17 of the mandatory funding period the 
                contribution levels assessed under section 203 and not 
                make any reduction adjustments as provided in section 
                204(a) for years 18 through 20.
                    (G) Years 21 through 26.--If the Administrator 
                fails to certify that there are adequate funds 
                available during years 21 through 26 of the mandatory 
                funding period, the Administrator shall maintain until 
                year 26 of the mandatory funding period the 
                contribution levels assessed under section 203 and not 
                make any reduction adjustments as provided in section 
                204(a) for years 21 through 26.
                    (H) Year 27.--If the Administrator fails to certify 
                that there are adequate funds available during year 27 
                of the mandatory funding period, the Administrator 
                shall maintain the contribution levels assessed under 
                section 203 and not make any reduction adjustments as 
                provided in section 204(a) for year 27.
                    (I) Determination of reduction adjustments.--
                            (i) In general.--In administering 
                        subparagraphs (C) through (H), clauses (ii) and 
                        (iii) shall apply.
                            (ii) Certification of adequate funds.--If a 
                        reduction adjustment was not made in any 
                        preceding 3-year, 6-year, or 1-year period and 
                        the Administrator certifies there are adequate 
                        funds under paragraph (3), the amount of any 
                        reduction adjustment under section 204(a) shall 
                        be determined as though all preceding 
                        reductions had been made.
                            (iii) Additional reduction adjustment.--If 
                        at any time during the first 27 years of the 
                        Fund the Administrator determines that there 
                        are more than adequate funds to compensate 
                        past, pending, and future claimants at the 
                        scheduled award values under section 131(b), 
                        the Administrator may use any excess funds to 
                        provide an additional reduction adjustment to 
                        participants in addition to any reduction 
                        adjustment made under clause (ii). The total 
                        reduction adjustment for any participant shall 
                        be no greater than the amount of additional 
                        contributions required under this section.
                    (J) Limitation of required contribution.--
                Notwithstanding subparagraphs (B) through (H), if the 
                Administrator certifies, after consultation with 
                appropriate experts, there will be adequate funds 
                available to compensate past, pending, and projected 
                future claimants at the scheduled award values provided 
                in section 131(b) after applying a smaller reduction 
                adjustment than otherwise required under this 
                paragraph, during the time period in which such 
                reduction adjustment would apply, the Administrator 
                shall apply such smaller reduction adjustment.
                    (K) No orphan share.--The additional contributions 
                collected by the Administrator under this subsection 
                shall not be considered excess monies under subsection 
                (h) to be placed in the orphan share reserve account 
                and shall be credited to the Fund only for the payment 
                of claims.
            (5) Insurer participants.--
                    (A) In general.--The Administrator shall require 
                additional contributions from the insurer participants 
                in an amount equal the total amount of additional 
                contributions allocated to the defendant participants 
                under paragraph (4) for any 3-year, 6-year, or 1-year 
                period.
                    (B) Allocation.--Of the amount of additional 
                contributions required under subparagraph (A), each 
                insurer participant shall be allocated an additional 
                contribution equal to the insurer participant's 
                proportionate share of annual contributions to the Fund 
                under section 212.
            (6) Enforcement.--The additional contributions required 
        under this subsection may be enforced in the same manner and to 
        the same extent as the enforcement of a contribution under 
        section 224.
    (g) Back-End Payments.--
            (1) In general.--Notwithstanding sections 202(a)(2), 
        204(a), and 212(a)(3)(A), in any year after year 27 of the 
        Fund, if the Administrator, after consultation with appropriate 
        experts, determines that additional contributions are needed to 
        assure adequate funding for claimants eligible to receive 
        compensation under this Act at the scheduled awards value as 
        originally enacted, as adjusted for inflation, the 
        Administrator may request, each year, in the aggregate, no more 
        than--
                    (A) an additional $1,000,000,000 from the defendant 
                participants; and
                    (B) an additional $1,000,000,000 from the insurer 
                participants.
            (2) Voluntary contributions.--Upon a determination by the 
        Administrator under paragraph (1) that additional contributions 
        are required, a defendant participant or an insurer participant 
        may make an annual contribution to the Fund in an amount equal 
        to that participant's required share of the aggregate payment 
        requested by the Administrator.
            (3) Failure to make voluntary payments.--
                    (A) Subjection to asbestos claims.--If a 
                participant fails to make a voluntary contribution 
                under paragraph (2)--
                            (i) section 403 shall no longer apply to 
                        that participant; and
                            (ii) the participant shall be subject to 
                        civil actions for asbestos claims brought under 
                        any Federal or State law, including tort or 
                        common law, that were otherwise superseded or 
                        preempted by this Act.
                    (B) Exclusive jurisdiction.--The district courts of 
                the United States shall have exclusive jurisdiction to 
                hear any asbestos claim allowable under subparagraph 
                (A).
                    (C) Statute of limitations.--With respect to any 
                civil action for an asbestos claim against a 
                participant that failed to make a voluntary 
                contribution under paragraph (2), the statute of 
                limitations with respect to that asbestos claim shall 
                not begin to run for any claimant who has filed such 
                claim under section 111(c) and who has not received 
                full compensation under this Act, until such time the 
                claimant knew or should have known that the participant 
                failed to make a voluntary contribution under paragraph 
                (2).
    <DELETED>(e)</DELETED> (h) Orphan Share Reserve Account.--
            (1) In general.--To the extent the total amount of 
        contributions of the participants in any given year exceed the 
        <DELETED>maximum</DELETED> minimum 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.--
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) enforce such liability and the lien of 
                the United States under this section; or</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
            (1) In general.--In any case in which there has been a 
        refusal or failure to pay any liability imposed by a final 
        determination under section 202 or 212, the Administrator may 
        bring a civil action in the Federal District Court for the 
        District of Columbia--
                    (A) to enforce the liability and any lien of the 
                United States imposed under this section;
                    (B) to subject any property of the participant, 
                including any property in which the participant has any 
                right, title, or interest, to the payment of such 
                liability; or
                    (C) for temporary, preliminary, or permanent 
                relief.
            (2) Additional penalties.--In any action under paragraph 
        (1) in which the refusal or failure to pay was willful, the 
        Administrator may seek recovery--
                    (A) for punitive damages;
                    (B) for the costs of any civil action under this 
                subsection, including reasonable fees incurred for 
                collection, expert witnesses, and attorney's fees; and
                    (C) in addition to any other penalty, collect a 
                fine equal to the total amount of the liability that 
                has not been collected.
            (3) 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.
            (4) Deposit of funds.--
                    (A) In general.--Any funds collected under 
                paragraph (2)(C) shall be--
                            (i) deposited in the Fund; and
                            (ii) used only to pay--
                                    (I) claims for awards for an 
                                eligible disease or condition 
                                determined under title I; or
                                    (II) claims for reimbursement for 
                                medical monitoring determined under 
                                title I.
                    (B) No effect on other liabilities.--The imposition 
                of a fine under paragraph (1)(E) shall have no effect 
                on--
                            (i) the assessment of contributions under 
                        section 202 or 212; or
                            (ii) any other provision of this Act.

<DELETED>SEC. 225. ADDITIONAL CONTRIBUTING PARTICIPANTS.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>

                       TITLE III--JUDICIAL REVIEW

SEC. 301. JUDICIAL REVIEW OF DECISIONS OF THE <DELETED>ASBESTOS COURT</DELETED> 
              UNITED STATES COURT OF ASBESTOS CLAIMS.

    (a) Exclusive Jurisdiction.--<DELETED>The United States Court of 
Appeals for the District of Columbia</DELETED> The United States Court 
of Appeals for the Federal Circuit shall have exclusive jurisdiction 
over any action to review a final decision of the <DELETED>Asbestos 
Court</DELETED> United States Court of Asbestos Claims of the Court of 
Federal Claims.
    (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 <DELETED>Asbestos Court</DELETED> United 
        States Court of Asbestos Claims.
            (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 <DELETED>Asbestos Court</DELETED> United States 
        Court of Asbestos Claims, and the <DELETED>Asbestos Court</DELETED> 
        United States Court of Asbestos Claims 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 <DELETED>Asbestos Court</DELETED> 
                United States Court of Asbestos Claims 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 
                <DELETED>Asbestos Court</DELETED> United States Court 
                of Asbestos Claims is arbitrary and capricious, the 
                court shall remand the case to the <DELETED>Asbestos 
                Court</DELETED> United States Court of Asbestos Claims.
            (4) Finality of determination.--The decision of the 
        <DELETED>United States Court of Appeals for the District of 
        Columbia</DELETED> United States Court of Appeals for the 
        Federal Circuit 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 <DELETED>Asbestos 
Court</DELETED> United States Court of Asbestos Claims, 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 <DELETED>Asbestos Court</DELETED> Court of Federal Claims.
    (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.

<DELETED>    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--</DELETED>
        <DELETED>    (1) criminal prosecution under section 1001 of 
        title 18, United States Code; and</DELETED>
        <DELETED>    (2) civil penalties under section 3729 of title 
        31, United States Code.</DELETED>
    (a) In General.--Chapter 63 of title 18, United States Code, is 
amended by adding at the end the following:
``Sec. 1348. Fraud and false statements in connection with 
              participation in Asbestos Injury Claims Resolution Fund
    ``(a) Fraud Relating to Asbestos Injury Claims Resolution Fund.--
Whoever knowingly and willfully executes, or attempts to execute, a 
scheme or artifice to defraud the Asbestos Insurers Commission or the 
Office of Asbestos Injury Claims Resolution under title II of the 
Fairness in Asbestos Injury Resolution Act of 2003 shall be fined under 
this title or imprisoned not more than 20 years, or both.
    ``(b) False Statements Relating to Asbestos Injury Claims 
Resolution Fund.--Whoever, in any matter involving the Asbestos 
Insurers Commission or the Office of Asbestos Injury Claim Resolution, 
knowingly and willfully--
            ``(1) falsifies, conceals, or covers up by any trick, 
        scheme, or device a material fact;
            ``(2) makes any materially false, fictitious, or fraudulent 
        statements or representations; or
            ``(3) makes or uses any false writing or document knowing 
        the same to contain any materially false, fictitious, or 
        fraudulent statement or entry,
in connection with the award of a claim or the assessment of 
contributions under title I or II of the Fairness in Asbestos Injury 
Resolution Act of 2003 shall be fined under this title or imprisoned 
not more than 10 years, or both.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 63 of title 18, United States Code, is amended by adding at the 
end the following:

``1348. Fraud and false statements in connection with participation in 
                            Asbestos Injury Claims Resolution Fund.''.

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:
    ``<DELETED>(q)</DELETED> (p) 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') <DELETED>as 
        is required under section 202 of</DELETED> as established under 
        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 <DELETED>until the assignment required 
        under paragraph (1) has been made</DELETED>.''.
    (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 <DELETED>assigned 
        to Tiers II through VI</DELETED> with respect to the treatment 
        of any asbestos claim <DELETED>filed before the date of 
        enactment of this Act</DELETED> 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.
            (5) Determination.--
                    (A) In general.--Paragraphs (1), (2), (3), and (4) 
                shall not be effective until the Administrator 
                determines that the Fund is fully operational and 
                processing claims.
                    (B) Remedy under State law.--Any rights and 
                remedies relating to an asbestos claim shall be 
                available under State law until paragraphs (1), (2), 
                (3), and (4) become effective under subparagraph (A).
                    (C) Offset from contributions to fund.--A 
                participant's contributions to the Fund shall be 
                reduced by the amount of any claims made payable by the 
                operation of this paragraph after the date of enactment 
                of this Act.

SEC. 404. ANNUAL REPORT OF THE ADMINISTRATOR.

            (1) In general.--The Administrator shall submit an annual 
        report to the Committee on the Judiciary of the House of 
        Representatives and the Committee on the Judiciary of the 
        Senate on the operation of the Asbestos Injury Claims 
        Resolution Fund within 6 months after the close of each fiscal 
        year.
            (2) Contents of report.--The annual report submitted under 
        this subsection shall include--
                    (A) a summary of the claims made during the most 
                recent fiscal year, including--
                            (i) the number of claims made to the Fund 
                        and a description of the types of medical 
                        diagnoses and asbestos exposure underlying 
                        those claims; and
                            (ii) the number of claims denied by the 
                        Fund and a description of the types of medical 
                        diagnoses and asbestos exposures underlying 
                        those claims;
                    (B) a summary of the eligibility determinations 
                made by the Court of Federal Claims under section 113;
                    (C) a summary of the awards made from the Fund, 
                including the amount of the awards;
                    (D) a certification by the Administrator that, by 
                date of the filing of this Report, 95 percent or more 
                of the asbestos claimants who filed claims during the 
                prior calendar year, and who were determined to be 
                eligible to receive compensation under this Act, have 
                received the compensation for which they are entitled, 
                according to the terms of section 133 of this Act;
                    (E) a certification by the Administrator that, by 
                the date of the filing of this Report, 95 percent or 
                more of the total obligations of the Fund owed to 
                eligible claimants in the prior calendar year have been 
                paid;
                    (F) the identity of all participants and a summary 
                of the funding allocations of each participant, 
                including the amounts of all contributions;
                    (G) a summary of all financial hardship or inequity 
                adjustments applied for during the fiscal year, and a 
                summary of the adjustments that were made during the 
                fiscal year;
                    (H) a summary of the investments made under section 
                222(b);
                    (I) a summary of all referrals made to law 
                enforcement authorities under section 222(c), and of 
                any legal actions brought or penalties imposed under 
                section 224;
                    (J) an estimate of the number and types of claims, 
                the amount of awards, and the participant contributions 
                for the next fiscal year;
                    (K) any recommendations from the medical panel of 
                the Fund to improve the medical criteria requirements 
                or diagnostic provisions of the Fund;
                    (L) audits conducted under section 115;
                    (M) prosecutions under section 1348 of title 18, 
                United States Code; and
                    (N) any recommendations to improve the operation of 
                the Fund.
            (3) Sunset of act if certifications not met.--
                    (A) If the Administrator fails to make the 
                certifications required in paragraph (2)(D) and (E), 
                above, as part of the required Annual Report, then the 
                Administrator shall have 90 days to remedy this 
                situation and to submit new certifications to the 
                Committee on the Judiciary of the House of 
                Representatives and the Committee on the Judiciary of 
                the Senate. If the Administrator fails to make the 
                required certifications by this later date, then the 
                Act, and all of its provisions and requirements, shall 
                sunset immediately.
                    (B) If the Act sunsets according to the terms of 
                subparagraph (A), then the applicable statute of 
                limitations for the filing of asbestos-related claims 
                shall be deemed tolled for any past or pending 
                claimants while they were pursuing claims through the 
                Asbestos Injury Claims Resolution Fund. For those 
                claimants who decide to pursue a claim in the 
                appropriate court, the applicable statute of 
                limitations shall apply, or the claimants shall have 
                two years from the date the Act sunsets to file a claim 
                in court, whichever is longer.
                    (C) If an asbestos claimant has received all or 
                part of the award for which he or she was determined to 
                be eligible under this Act, then any amount he or she 
                is awarded through a court action, or through 
                settlement negotiations, shall be reduced by the amount 
                the claimant has already received through the Asbestos 
                Injury Claims Resolution Fund.

SEC. 405. RULES OF CONSTRUCTION RELATING TO LIABILITY OF THE UNITED 
              STATES GOVERNMENT.

    (a) Causes of Actions.--Except as otherwise specifically provided 
in this Act, nothing in this Act may be construed as creating a cause 
of action against the United States Government, any entity established 
under this Act, or any officer or employee of the United States 
Government or such entity.
    (b) Funding Liability.--Nothing in this Act may be construed to--
            (1) create any obligation of funding from the United States 
        Government, other than the funding for personnel and support as 
        provided under subtitle A of title I; or
            (2) obligate the United States Government to pay any award 
        or part of an award, if amounts in the Fund are inadequate.

SEC. 406. EFFECT ON INSURANCE AND REINSURANCE CONTRACTS.

    (a) Erosion of Insurance Coverage Limits.--
            (1) Definitions.--In this section, the following 
        definitions shall apply:
                    (A) Remaining aggregate products limits.--The term 
                ``remaining aggregate products limits'' means aggregate 
                limits that apply to insurance coverage granted under 
                the ``products hazard'', ``completed operations 
                hazard'', or ``Products--Completed Operations 
                Liability'' in any comprehensive general liability 
                policy issued between calendar years 1940 and 1986 to 
                cover injury which occurs in any State, as reduced by--
                            (i) any existing impairment of such 
                        aggregate limits as of the date of enactment of 
                        this Act; and
                            (ii) the resolution of claims for 
                        reimbursement or coverage of liability or paid 
                        or incurred loss for which notice was provided 
                        to the insurer before the date of enactment of 
                        this Act.
                    (B) Scheduled assessment amounts.--The term 
                ``scheduled assessment amounts'' means the future 
                contributions to the Fund assessed by the Administrator 
                from a defendant participant in the amount established 
                under sections 203 and 204.
            (2) Quantum and timing of erosion.--
                    (A) Erosion upon enactment.--The collective payment 
                obligations to the Fund of the insurer and reinsurer 
                participants as assessed by the Administrator shall be 
                deemed as of the date of enactment of this Act to erode 
                remaining aggregate products limits available to a 
                defendant participant only in an amount of 74.51 
                percent of each defendant participant's scheduled 
                assessment amount.
                    (B) Erosion upon contingent call.--If the 
                Administrator, under section 223(f), fails to certify 
                that there are adequate funds during any 3-year, 6-
                year, or 1-year period of the mandatory funding period, 
                the resulting collective contingent payment obligations 
                to the Fund of the insurer participants shall be deemed 
                to erode remaining aggregate products limits available 
                to a defendant participant in an amount of 74.51 
                percent of the amount of the contingent call upon that 
                defendant participant for such period. For any 3-year, 
                6-year, or 1-year period, the amount of the contingent 
                call upon a defendant participant shall be the 
                difference between the contribution required for that 
                period and the contribution that would have been 
                required for that period if the reduction adjustment 
                under section 204(a) had been made. Erosion in 
                accordance with this paragraph shall be deemed to occur 
                at the time of the Administrator's notice to the 
                defendant participant under section 223(f)(3)(D)(ii).
                    (C) Erosion upon voluntary payments.--Payments by 
                insurer participants under section 223(g)(2) shall be 
                deemed at the time of payment to erode remaining 
                aggregate products limits available to a defendant 
                participant in an amount of 74.51 percent of the amount 
                of the voluntary payment requested of that defendant 
                participant, except that an insurer participant that 
                fails to make the voluntary payment requested by the 
                Administrator under section 223(g) shall not be 
                entitled to claim that payments to the Fund under 
                section 223(g) erode, exhaust, or otherwise limit that 
                insurer participant's insurance obligations. With 
                respect to any insurer participant that fails to make 
                the voluntary payment requested by the Administrator 
                under section 223(g), payments by a participant under 
                section 223(g) shall be considered amounts that 
                participant is legally obligated to pay as a result of 
                asbestos-related bodily injury.
                    (D) No assertion of claim.--No insurer or reinsurer 
                may assert any claim against a defendant participant or 
                captive insurer for insurance, reinsurance, payment of 
                a deductible, or retrospective premium adjustment 
                arising out of that insurer or reinsurer's payments to 
                the Fund or the erosion deemed to occur under this 
                section.
                    (E) Policies without certain limits or with 
                exclusion.--Other than under subparagraph (G), nothing 
                in this section shall require or permit the erosion of 
                any insurance policy or limit that does not contain an 
                aggregate products limit, or that contains an asbestos 
                exclusion.
                    (F) Treatment of consolidation election.--If an 
                affiliated group elects consolidation as provided in 
                section 204(f), the total erosion of limits for the 
                affiliated group under paragraph (2)(A) shall not 
                exceed 74.51 percent of the scheduled assessment amount 
                of the single contribution assessed for the entire 
                affiliated group, and the total erosion of limits for 
                the affiliated group under paragraph (2) (B) or (C) 
                shall not exceed 74.51 percent of the single contingent 
                call amount or voluntary payment amount, respectively, 
                for the entire affiliated group. The total erosion of 
                limits for any individual defendant participant in the 
                affiliated group shall not exceed its individual share 
                of 74.51 percent of the affiliated group's scheduled 
                assessment amount, contingent call amount, or voluntary 
                payment amount, as measured by the individual defendant 
                participant's percentage share of the affiliated 
                group's prior asbestos expenditures.
                    (G) Rule of construction.--Notwithstanding any 
                other provision of this section, nothing in the Act 
                shall be deemed to erode remaining aggregate products 
                limits of a defendant participant that can demonstrate 
                by a preponderance of the evidence that 75 percent of 
                its prior asbestos expenditures were made in defense or 
                satisfaction of asbestos claims alleging bodily injury 
                arising exclusively from the exposure to asbestos at 
                premises owned, rented, or controlled by the defendant 
                participant (a ``premises defendant''). In calculating 
                such percentage, where expenditures were made in 
                defense or satisfaction of asbestos claims alleging 
                bodily injury due to exposure to the defendant 
                participant's products and to asbestos at premises 
                owned, rented or controlled by the defendant 
                participant, half of such expenditures shall be deemed 
                to be for such premises exposures. In the event that a 
                defendant participant establishes itself as a premises 
                defendant, 75 percent of the payments by such defendant 
                participant shall erode coverage limits, if any, 
                applicable to premises liabilities under applicable 
                law.
            (3) Method of erosion.--
                    (A) Allocation.--The amount of erosion allocated to 
                each defendant participant shall be allocated among 
                periods in which policies with remaining aggregate 
                product limits are available to that defendant 
                participant pro rata by policy period, in ascending 
                order by attachment point.
                    (B) Other erosion methods.--
                            (i) In general.--Notwithstanding 
                        subparagraph (A), the method of erosion of any 
                        remaining aggregate products limits which are 
                        subject to--
                                    (I) a coverage-in-place or 
                                settlement agreement between a 
                                defendant participant and 1 or more 
                                insurance participants as of the date 
                                of enactment; or
                                    (II) a final and nonappealable 
                                judgment as of the date of enactment or 
                                resulting from a claim for coverage or 
                                reimbursement pending as of such date,
                        shall be as specified in such agreement or 
                        judgment with regard to erosion applicable to 
                        such insurance participants' policies.
                            (ii) Remaining limits.--To the extent that 
                        a final nonappealable judgment or settlement 
                        agreement in effect as of the date of enactment 
                        of this Act extinguished a defendant 
                        participant's right to seek coverage for 
                        asbestos claims under an insurer participant's 
                        policies, any remaining limits in such policies 
                        shall not be considered to be remaining 
                        aggregate products limits under subsection 
                        (a)(1)(A).
            (4) Payments by defendant participant.--Payments made by a 
        defendant participant shall be deemed to erode applicable self-
        insured retentions, deductibles, retrospectively rated 
        premiums, and limits issued by nonparticipating insolvent or 
        captive insurance companies. Reduction of remaining aggregate 
        limits under this subsection shall not limit the right of a 
        defendant participant to collect from any insurer not a 
        participant.
            (5) Effect on other insurance claims.--Other than as 
        specified in this subsection, this Act does not alter, change, 
        modify, or affect insurance for claims other than asbestos 
        claims.
    (c) Dispute Resolution Procedure.--
            (1) Arbitration.--The parties to a dispute regarding the 
        erosion of insurance coverage limits under this section may 
        agree in writing to settle such dispute by arbitration. Any 
        such provision or agreement shall be valid, irrevocable, and 
        enforceable, except for any grounds that exist at law or in 
        equity for revocation of a contract.
            (2) Title 9, united states code.--Arbitration of such 
        disputes, awards by arbitrators, and confirmation of awards 
        shall be governed by title 9, United States Code, to the extent 
        such title is not inconsistent with this section. In any such 
        arbitration proceeding, the erosion principles provided for 
        under this section shall be binding on the arbitrator, unless 
        the parties agree to the contrary.
            (3) Final and binding award.--An award by an arbitrator 
        shall be final and binding between the parties to the 
        arbitration, but shall have no force or effect on any other 
        person. The parties to an arbitration may agree that in the 
        event a policy which is the subject matter of an award is 
        subsequently determined to be eroded in a manner different from 
        the manner determined by the arbitration in a judgment rendered 
        by a court of competent jurisdiction from which no appeal can 
        or has been taken, such arbitration award may be modified by 
        any court of competent jurisdiction upon application by any 
        party to the arbitration. Any such modification shall govern 
        the rights and obligations between such parties from the date 
        of such modification.
    (d) Effect on nonparticipants.--
            (1) In general.--No insurance company or reinsurance 
        company that is not a participant, other than a captive 
        insurer, shall be entitled to claim that payments to the Fund 
        erode, exhaust, or otherwise limit the nonparticipant's 
        insurance or reinsurance obligations.
            (2) Other claims.--Nothing in this Act shall preclude a 
        participant from pursuing any claim for insurance or 
        reinsurance from any person that is not a participant other 
        than a captive insurer.

          TITLE V--PROHIBITION OF ASBESTOS CONTAINING PRODUCTS

SEC. 501. PROHIBITION ON ASBESTOS CONTAINING PRODUCTS.

    (a) In General.--Part I of title 18, United States Code, is amended 
by inserting after chapter 39 the following:

           ``CHAPTER 39A--BAN OF ASBESTOS CONTAINING PRODUCTS

``Sec.
``838. Ban of asbestos containing products
``Sec. 838. Ban of asbestos containing products
    ``(a) Definitions.--In this chapter:
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the Environmental Protection Agency.
            ``(2) Asbestos.--The term `asbestos' includes--
                    ``(A) chrysotile;
                    ``(B) amosite;
                    ``(C) crocidolite;
                    ``(D) tremolite asbestos;
                    ``(E) winchite asbestos;
                    ``(F) richterite asbestos;
                    ``(G) anthophyllite asbestos;
                    ``(H) actinolite asbestos;
                    ``(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.
            ``(3) Asbestos containing product.-- The term `asbestos 
        containing product' means any product (including any part) to 
        which asbestos is deliberately or knowingly added or used 
        because the specific properties of asbestos are necessary for 
        product use or function. Under no circumstances shall the term 
        `asbestos containing product' be construed to include products 
        that contain de minimus levels of naturally occurring asbestos 
        as defined by the Administrator not later than 1 year after the 
        date of enactment of this chapter.
            ``(4) Distribute in commerce.--The term `distribute in 
        commerce'--
                    ``(A) has the meaning given the term in section 3 
                of the Toxic Substances Control Act (15 U.S.C. 2602); 
                and
                    ``(B) shall not include--
                            ``(i) an action taken with respect to an 
                        asbestos containing product in connection with 
                        the end use of the asbestos containing product 
                        by a person that is an end user, or an action 
                        taken by a person who purchases or receives a 
                        product, directly or indirectly from an end 
                        user; or
                            ``(ii) distribution of an asbestos 
                        containing product by a person solely for the 
                        purpose of disposal of the asbestos containing 
                        product in compliance with applicable Federal, 
                        State, and local requirements.
    ``(b) In General.--Subject to subsection (c), the Administrator 
shall, after consultation with the Assistant Attorney General for the 
Environmental and Natural Resources Division of the United States 
Department of Justice, promulgate--
            ``(1) not later than 1 year after the date of enactment of 
        this chapter, proposed regulations that--
                    ``(A) prohibit persons from manufacturing, 
                processing, or distributing in commerce asbestos 
                containing products; and
                    ``(B) provide for implementation of subsections (c) 
                and (d); and
            ``(2) not later than 2 years after the date of enactment of 
        this chapter, final regulations that, effective 60 days after 
        the date of promulgation, prohibit persons from manufacturing, 
        processing, or distributing in commerce asbestos containing 
        products.
    ``(c) Exemptions.--
            ``(1) In general.--Any person may petition the 
        Administrator for, and the Administrator may grant an exemption 
        from the requirements of subsection (b), if the Administrator 
        determines that--
                    ``(A) the exemption would not result in an 
                unreasonable risk of injury to public health or the 
                environment; and
                    ``(B) the person has made good faith efforts to 
                develop, but has been unable to develop, a substance, 
                or identify a mineral that does not present an 
                unreasonable risk of injury to public health or the 
                environment and may be substituted for an asbestos 
                containing product.
            ``(2) Terms and conditions.--An exemption granted under 
        this subsection shall be in effect for such period (not to 
        exceed 5 years) and subject to such terms and conditions as the 
        Administrator may prescribe.
            ``(3) Governmental use.--
                    ``(A) In general.--The Administrator of the 
                Environmental Protection Agency shall provide an 
                exemption from the requirements of subsection (a), 
                without review or limit on duration, if such exemption 
                for an asbestos containing product is--
                            ``(i) sought by the Secretary of Defense 
                        and the Secretary certifies, and provides a 
                        copy of that certification to Congress, that--
                                    ``(I) use of the asbestos 
                                containing product is necessary to the 
                                critical functions of the Department;
                                    ``(II) no reasonable alternatives 
                                to the asbestos containing product 
                                exist for the intended purpose; and
                                    ``(III) use of the asbestos 
                                containing product will not result in 
                                an unreasonable risk to health or the 
                                environment; or
                            ``(ii) sought by the Administrator of the 
                        National Aeronautics and Space Administration 
                        and the Administrator of the National 
                        Aeronautics and Space Administration certifies, 
                        and provides a copy of that certification to 
                        Congress, that--
                                    ``(I) the asbestos containing 
                                product is necessary to the critical 
                                functions of the National Aeronautics 
                                and Space Administration;
                                    ``(II) no reasonable alternatives 
                                to the asbestos containing product 
                                exist for the intended purpose; and
                                    ``(III) the use of the asbestos 
                                containing product will not result in 
                                an unreasonable risk to health or the 
                                environment.
                    ``(B) Administrative procedure act.--Any 
                certification required under subparagraph (A) shall not 
                be subject to chapter 5 of title 5, United States Code 
                (commonly referred to as the `Administrative Procedure 
                Act'.
            ``(4) Specific exemptions.--The following are exempted:
                    ``(A) Asbestos diaphragms for use in the 
                manufacture or chlor-alkali and the products and 
                derivative therefrom.
                    ``(B) Roofing cements, coatings and mastics 
                utilizing asbestos that is totally encapsulated with 
                asphalt, subject to a determination by the 
                Administrator of the Environmental Protection Agency 
                under paragraph (5).
            ``(5) Environmental protection agency review.--
                    ``(A) Review in 18 months.--Not later than 18 
                months after the date of enactment of this chapter, the 
                Administrator of the Environmental Protection Agency 
                shall complete a review of the exemption for roofing 
                cements, coatings, and mastics utilizing asbestos that 
                are totally encapsulated with asphalt to determine 
                whether--
                            ``(i) the exemption would result in an 
                        unreasonable risk of injury to public health or 
                        the environment; and
                            ``(ii) there are reasonable, commercial 
                        alternatives to the roofing cements, coatings, 
                        and mastics utilizing asbestos that is totally 
                        encapsulated with asphalt.
                    ``(B) Revocation of exemption.--Upon completion of 
                the review, the Administrator of the Environmental 
                Protection Agency shall have the authority to revoke 
                the exemption for the products exempted under paragraph 
                (4)(B) if warranted.
    ``(d) Disposal.--
            ``(1) In general.--Except as provided in paragraph (2), not 
        later than 3 years after the date of enactment of this chapter, 
        each person that possesses an asbestos containing product that 
        is subject to the prohibition established under this section 
        shall dispose of the asbestos containing product, by a means 
        that is in compliance with applicable Federal, State, and local 
        requirements.
            ``(2) Exemption.--Nothing in paragraph (1)--
                    ``(A) applies to an asbestos containing product 
                that--
                            ``(i) is no longer in the stream of 
                        commerce; or
                            ``(ii) is in the possession of an end user 
                        or a person who purchases or receives an 
                        asbestos containing product directly or 
                        indirectly from an end user; or
                    ``(B) requires that an asbestos containing product 
                described in subparagraph (A) be removed or 
                replaced.''.
    (b) Technical and Conforming Amendment.--The table of chapters for 
part I of title 18, United States Code, is amended by inserting after 
the item relating to chapter 39 the following:

``39A. Ban of asbestos containing products..................     838''.




                                                       Calendar No. 239

108th CONGRESS

  1st Session

                                S. 1125

                          [Report No. 108-118]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                July 30 (legislative day, July 21), 2003

                        Reported with amendments