[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2290 Placed on Calendar Senate (PCS)]






                                                       Calendar No. 472
108th CONGRESS
  2d Session
                                S. 2290

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

                             April 7, 2004

    Mr. Hatch (for himself, Mr. Frist, Mr. Miller, Mr. DeWine, Mr. 
   Voinovich, Mr. Allen, Mr. Chambliss, Mr. Hagel, and Mr. Domenici) 
      introduced the following bill; which was read the first time

                             April 8, 2004

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 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 2004'' or the ``FAIR Act of 2004''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

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

          Subtitle A--Office of Asbestos Disease Compensation

Sec. 101. Establishment of Office of Asbestos Disease Compensation.
Sec. 102. Advisory Committee on Asbestos Disease Compensation.
Sec. 103. Medical Advisory Committee.
Sec. 104. Claimant assistance.
Sec. 105. Physicians panels.
Sec. 106. Program startup.
Sec. 107. Authority of the Administrator.
          Subtitle B--Asbestos Disease Compensation Procedures

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

Sec. 121. Medical criteria requirements.
                           Subtitle D--Awards

Sec. 131. Amount.
Sec. 132. Medical monitoring.
Sec. 133. Payment.
Sec. 134. Reduction in benefit payments for collateral sources.
            TITLE II--ASBESTOS INJURY CLAIMS RESOLUTION FUND

           Subtitle A--Asbestos Defendants Funding Allocation

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

Sec. 210. Definition.
Sec. 211. Establishment of Asbestos Insurers Commission.
Sec. 212. Duties of Asbestos Insurers Commission.
Sec. 213. Powers of Asbestos Insurers Commission.
Sec. 214. Personnel matters.
Sec. 215. Termination of Asbestos Insurers Commission.
Sec. 216. Expenses and costs of Commission.
           Subtitle C--Asbestos Injury Claims Resolution Fund

Sec. 221. Establishment of Asbestos Injury Claims Resolution Fund.
Sec. 222. Management of the Fund.
Sec. 223. Enforcement of payment obligations.
Sec. 224. Interest on underpayment or nonpayment.
                       TITLE III--JUDICIAL REVIEW

Sec. 301. Judicial review of rules and regulations.
Sec. 302. Judicial review of award decisions.
Sec. 303. Judicial review of participants' assessments.
Sec. 304. Other judicial challenges.
Sec. 305. Stays, exclusivity, and constitutional review.
                   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. Effect on insurance and reinsurance contracts.
Sec. 405. Annual report of the Administrator.
Sec. 406. Rules of construction relating to liability of the United 
                            States Government.
Sec. 407. Rules of construction.
Sec. 408. Violations of environmental and occupational health and 
                            safety requirements.
Sec. 409. Nondiscrimination of health insurance.
                         TITLE V--ASBESTOS BAN

Sec. 501. Prohibition on asbestos containing products.

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 to 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 conditions 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 Disease Compensation 
        appointed under section 101(b).
            (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 claim, premised on any theory, allegation, or cause 
                of action for damages or other relief presented in a 
                civil action or bankruptcy proceeding, directly, 
                indirectly, or derivatively 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 
                alleging damage or injury to tangible property, or 
                claims for benefits under a workers' compensation law 
                or veterans' benefits program.
            (4) Asbestos claimant.--The term ``asbestos claimant'' 
        means an individual who files a claim under section 113.
            (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.
            (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 113.
            (7) 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, disabling asbestosis disease, mesothelioma, 
        lung cancer I, lung cancer II, lung cancer III, and other 
        cancers.
            (8) Fund.--The term ``Fund'' means the Asbestos Injury 
        Claims Resolution Fund established under section 221.
            (9) Insurance receivership proceeding.--The term 
        ``insurance receivership proceeding'' means any State 
        proceeding with respect to a financially impaired or insolvent 
        insurer or reinsurer including the liquidation, rehabilitation, 
        conservation, supervision or ancillary receivership of an 
        insurer under State law.
            (10) Law.--The term ``law'' includes all law, judicial or 
        administrative decisions, rules, regulations, or any other 
        principle or action having the effect of law.
            (11) Participant.--
                    (A) In general.--The term ``participant'' means any 
                person subject to the funding requirements of title II, 
                including--
                            (i) any defendant participant subject to 
                        liability for payments under subtitle A of that 
                        title;
                            (ii) any insurer participant subject to a 
                        payment 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, and the substantial 
                        consummation, as such term is defined in 
                        section 1101(2) of title 11, United States 
                        Code, of such plan of reorganization has 
                        occurred.
                            (ii) Applicability.--Clause (i) shall not 
                        apply to a person who may be liable under 
                        subtitle A of title II based on 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--
                    (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.
            (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.
            (17) Workers' compensation law.--The term ``workers' 
        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. 901 et seq.) and chapter 81 
                of title 5, United States Code; and
                    (C) does not include the Act of April 22, 1908 (45 
                U.S.C. 51 et seq.), commonly known as the Federal 
                Employers' Liability Act, or damages recovered by any 
                employee in a liability action against an employer.

                  TITLE I--ASBESTOS CLAIMS RESOLUTION

          Subtitle A--Office of Asbestos Disease Compensation

SEC. 101. ESTABLISHMENT OF OFFICE OF ASBESTOS DISEASE COMPENSATION.

    (a) In General.--
            (1) Establishment.--There is established within the 
        Department of Labor the Office of Asbestos Disease Compensation 
        (hereinafter referred to in this Act as the ``Office''), which 
        shall be headed by an Administrator.
            (2) Purpose.--The purpose of the Office is to provide 
        timely, fair compensation, in the amounts and under the terms 
        specified in this Act, on a no-fault basis and in a non-
        adversarial manner, to individuals whose health has been 
        adversely affected by exposure to asbestos.
            (3) Expenses.--There shall be available from the Asbestos 
        Injury Claims Resolution Fund to the Administrator such sums as 
        are necessary for the administrative expenses of the Office, 
        including the sums necessary for conducting the studies 
        provided for in section 121(e).
    (b) Appointment of Administrator.--
            (1) In general.--The Administrator of the Office of 
        Asbestos Disease Compensation shall be appointed by the 
        President, by and with the advice and consent of the Senate. 
        The Administrator shall serve for a term of 5 years.
            (2) Reporting.--The Administrator shall report directly to 
        the Assistant Secretary of Labor for the Employment Standards 
        Administration.
    (c) Duties of Administrator.--
            (1) In general.--The Administrator shall be responsible 
        for--
                    (A) processing claims for compensation for 
                asbestos-related injuries and paying compensation to 
                eligible claimants under the criteria and procedures 
                established under title I;
                    (B) determining, levying, and collecting 
                assessments on participants under title II;
                    (C) appointing or contracting for the services of 
                such personnel, making such expenditures, and taking 
                any other actions as may be necessary and appropriate 
                to carry out the responsibilities of the Office, 
                including entering into cooperative agreements with 
                other Federal agencies or State agencies and entering 
                into contracts with non-governmental entities;
                    (D) conducting such audits and additional oversight 
                as necessary to assure the integrity of the program;
                    (E) managing the Asbestos Injury Claims Resolution 
                Fund established under section 221, including--
                            (i) administering, in a fiduciary capacity, 
                        the assets of the Fund for the exclusive 
                        purpose of providing benefits to asbestos 
                        claimants and their beneficiaries;
                            (ii) defraying the reasonable expenses of 
                        administering the Fund;
                            (iii) investing the assets of the Fund in 
                        accordance with section 222(b);
                            (iv) 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; 
                        and
                            (v) borrowing amounts authorized by section 
                        221(b) on appropriate terms and conditions, 
including pledging the assets of or payments to the Fund as collateral;
                    (F) promulgating such rules, regulations, and 
                procedures as may be necessary and appropriate to 
                implement the provisions of this Act;
                    (G) making such expenditures as may be necessary 
                and appropriate in the administration of this Act;
                    (H) excluding evidence and disqualifying or 
                debarring any attorney, physician, provider of medical 
                or diagnostic services, including laboratories and 
                others who provide evidence in support of a claimant's 
                application for compensation where the Administrator 
                determines that materially false, fraudulent or 
                fictitious statements or practices have been submitted 
                or engaged in by such individuals or entities; and
                    (I) having all other powers incidental, necessary, 
                or appropriate to carrying out the functions of the 
                Office.
            (2) Certain enforcements.--For each infraction relating to 
        paragraph (1)(H), the Administrator also may impose a civil 
        penalty not to exceed $10,000 on any person or entity found to 
        have submitted or engaged in a materially false, fraudulent or 
        fictitious statement or practice under this Act. The 
        Administrator shall prescribe appropriate regulations to 
        implement paragraph (1)(H).
            (3) Selection of deputy administrators.--The Administrator 
        shall select a Deputy Administrator for Claims Administration 
        to carry out the Administrator's responsibilities under this 
        title and a Deputy Administrator for Fund Management to carry 
        out the Administrator's responsibilities under title II of this 
        Act. The Deputy Administrators shall report directly to the 
        Administrator and shall be in the Senior Executive Service.
    (d) Expeditious Determinations.--The Administrator shall prescribe 
rules to expedite claims for asbestos claimants with exigent 
circumstances.
    (e) Audit and Personnel Review Procedures.--The Administrator shall 
establish audit and personnel review procedures for evaluating the 
accuracy of eligibility recommendations of agency and contract 
personnel.
    (f) Application of FOIA.--
            (1) 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 Disease Compensation and the 
        Asbestos Insurers Commission.
            (2) Confidentiality.--Any person may designate any record 
        submitted under this section as a confidential commercial or 
        financial record for purposes of section 552 of title 5, United 
        States Code. The Administrator and the Chairman of the Asbestos 
        Insurers Commission shall adopt procedures for designating such 
        records as confidential. Information on reserves and asbestos-
        related liabilities submitted by any participant for the 
        purpose of the allocation of payments under subtitles A and B 
        of title II shall be deemed to be confidential financial 
        records.

SEC. 102. ADVISORY COMMITTEE ON ASBESTOS DISEASE COMPENSATION.

    (a) Establishment.--
            (1) In general.--Not later than 120 days after the date of 
        enactment of this Act, the Administrator shall establish an 
        Advisory Committee on Asbestos Disease Compensation 
        (hereinafter the ``Advisory Committee'').
            (2) Composition and appointment.--The Advisory Committee 
        shall be composed of 24 members, appointed as follows--
                    (A) The Majority and Minority Leaders of the 
                Senate, the Speaker of the House, and the Minority 
                Leader of the House shall each appoint 4 members. Of 
                the 4--
                            (i) 2 shall be selected to represent the 
                        interests of claimants, at least 1 of whom 
                        shall be selected from among individuals 
                        recommended by recognized national labor 
                        federations; and
                            (ii) 2 shall be selected to represent the 
                        interests of participants, 1 of whom shall be 
                        selected to represent the interests of the 
                        insurer participants and 1 of whom shall be 
                        selected to represent the interests of the 
                        defendant participants.
                    (B) The Administrator shall appoint 8 members, who 
                shall be individuals with qualifications and expertise 
                in occupational or pulmonary medicine, occupational 
                health, workers compensation programs, financial 
                administration, investment of funds, program auditing, 
                or other relevant fields.
            (3) Qualifications.--All of the members described in 
        paragraph (2) shall have expertise or experience relevant to 
        the asbestos compensation program, including experience or 
        expertise in diagnosing asbestos-related diseases and 
        conditions, assessing asbestos exposure and health risks, 
        filing asbestos claims, or administering a compensation or 
        insurance program. None of the members described in paragraph 
        (2)(B) shall be individuals who, for each of the 5 years before 
        their appointments, earned more than 25 percent of their income 
        by serving in matters related to asbestos litigation as 
        consultants or expert witnesses.
    (b) Duties.--The Advisory Committee shall advise the Administrator 
on--
            (1) claims filing and claims processing procedures;
            (2) claimant assistance programs;
            (3) audit procedures and programs to ensure the quality and 
        integrity of the compensation program;
            (4) the development of a list of industries, occupations 
        and time periods for which there is a presumption of 
        substantial occupational exposure to asbestos;
            (5) recommended analyses or research that should be 
        conducted to evaluate past claims and to project future claims 
        under the program;
            (6) the annual report required to be submitted to Congress 
        under section 405; and
            (7) such other matters related to the implementation of 
        this Act as the Administrator considers appropriate.
    (c) Operation of the Committee.--
            (1) Each member of the Advisory Committee shall be 
        appointed for a term of 3 years, except that, of the members 
        first appointed--
                    (A) 8 shall be appointed for a term of 1 year;
                    (B) 8 shall be appointed for a term of 2 years; and
                    (C) 8 shall be appointed for a term of 3 years,
        as determined by the Administrator at the time of appointment.
            (2) Any member appointed to fill a vacancy occurring before 
        the expiration of the term shall be appointed only for the 
        remainder of such term.
            (3) The Administrator shall designate a Chairperson and 
        Vice Chairperson from among members of the Advisory Committee 
        appointed under subsection (a)(2)(B).
            (4) The Advisory Committee shall meet at the call of the 
        Chairperson or the majority of its members, and at a minimum 
        shall meet at least 4 times per year during the first 5 years 
        of the asbestos compensation program, and at least 2 times per 
        year thereafter.
            (5) The Administrator shall provide to the Committee such 
        information as is necessary and appropriate for the Committee 
        to carry out its responsibilities under this section. The 
        Administrator may, upon request of the Advisory Committee, 
        secure directly from any Federal department or agency such 
        information as may be necessary and appropriate to enable the 
        Advisory Committee to carry out its duties under this section. 
        Upon request of the Administrator, the head of such department 
        or agency shall furnish such information to the Advisory 
        Committee.
            (6) The Administrator shall provide the Advisory Committee 
        with such administrative support as is reasonably necessary to 
        enable it to perform its functions.
    (d) Expenses.--Members of the Advisory Committee, other than full-
time employees of the United States, while attending meetings of the 
Advisory Committee or while otherwise serving at the request of the 
Administrator, and while serving away from their homes or regular 
places of business, shall be allowed travel and meal expenses, 
including per diem in lieu of subsistence, as authorized by section 
5703 of title 5, United States Code, for individuals in the Government 
serving without pay.

SEC. 103. MEDICAL ADVISORY COMMITTEE.

    (a) In General.--The Administrator may establish a Medical Advisory 
Committee to provide expert advice regarding medical issues arising 
under the statute.
    (b) Qualifications.--None of the members of the Medical Advisory 
Committee shall be individuals who, for each of the 5 years before 
their appointments, earned more than 25 percent of their income by 
serving in matters related to asbestos litigation as consultants or 
expert witnesses.

SEC. 104. CLAIMANT ASSISTANCE.

    (a) Establishment.--Not later than 180 days after the enactment of 
this Act, the Administrator shall establish a comprehensive asbestos 
claimant assistance program to--
            (1) publicize and provide information to potential 
        claimants about the availability of benefits for eligible 
        claimants under this Act, and the procedures for filing claims 
        and for obtaining assistance in filing claims;
            (2) provide assistance to potential claimants in preparing 
        and submitting claims, including assistance in obtaining the 
        documentation necessary to support a claim;
            (3) respond to inquiries from claimants and potential 
        claimants; and
            (4) provide training with respect to the applicable 
        procedures for the preparation and filing of claims to persons 
        who provide assistance or representation to claimants.
    (b) Resource Centers.--The claimant assistance program shall 
provide for the establishment of resource centers in areas where there 
are determined to be large concentrations of potential claimants. These 
centers shall be located, to the extent feasible, in facilities of the 
Department of Labor or other Federal agencies.
    (c) Contracts.--The claimant assistance program may be carried out 
in part through contracts with labor organizations, community-based 
organizations, and other entities which represent or provide services 
to potential claimants, except that such organizations may not have a 
financial interest in the outcome of claims filed with the Office.
    (d) Legal Assistance.--
            (1) In general.--As part of the program established under 
        subsection (a), the Administrator 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 Administrator shall maintain a roster of qualified 
        attorneys who have agreed to provide pro bono services to 
        asbestos claimants under rules established by the 
        Administrator. The claimants shall not be required to use the 
        attorneys listed on such roster.
            (3) Notice.--
                    (A) Notice by administrator.--The Administrator 
                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 
                        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.
    (e) Attorney's Fees.--
            (1) In general.--Notwithstanding any contract, the 
        representative of an individual may not receive, for services 
        rendered in connection with the claim of an individual under 
        this Act, more than that percentage specified in paragraph (2) 
        of an award made under this Act on such claim.
            (2) Applicable percentage limitations.--
                    (A) In general.--The percentage limitation under 
                paragraph (1) shall be--
                            (i) 2 percent for the filing of an initial 
                        claim; and
                            (ii) 10 percent with respect to any claim 
                        under appellate review.
                    (B) Exception.--The Administrator may by rule adopt 
                a lower percentage limitation for particular classes of 
                cases if the Administrator finds that--
                            (i) the percentage limitation otherwise 
                        applicable under this paragraph would result in 
                        unreasonably high compensation to claimants' 
                        representatives in such cases; and
                            (ii) such lower percentage limitation would 
                        be reasonable and would not unduly limit the 
                        availability of representatives to claimants.
            (3) Penalty.--Any representative of an asbestos claimant 
        who violates this subsection shall be fined not more than 
        $5,000.

SEC. 105. PHYSICIANS PANELS.

    (a) Appointment.--The Administrator shall, in accordance with 
section 3109 of title 5, United States Code, appoint physicians with 
experience and competency in diagnosing asbestos-related diseases to be 
available to serve on Physicians Panels as necessary to carry out this 
Act.
    (b) Formation of Panels.--
            (1) In general.--The Administrator shall periodically 
        determine--
                    (A) the number of Physicians Panels necessary for 
                the efficient conduct of the medical review process 
                under section 121;
                    (B) the number of Physicians Panels necessary for 
                the efficient conduct of the exceptional medical claims 
                process under section 121; and
                    (C) the particular expertise necessary for each 
                panel.
            (2) Expertise.--Each panel shall be composed of members 
        having the particular expertise determined necessary by the 
        Administrator, randomly selected from among the physicians 
        appointed under subsection (a) having such expertise.
            (3) Panel members.--Each panel shall consist of 3 
        physicians, 2 of whom shall be designated to participate in 
        each case submitted to the panel, and the third of whom shall 
        be consulted in the event of disagreement.
    (c) Qualifications.--To be eligible to serve on a Physicians Panel 
under subsection (a), a person shall be--
            (1) a physician licensed in any State;
            (2) board-certified in pulmonary medicine, occupational 
        medicine, internal medicine, oncology, or pathology; and
            (3) an individual who, for each of the 5 years before and 
        during his or her appointment to a Physicians Panel, has earned 
        no more than 25 percent of his or her income as an employee of 
        a participating defendant or insurer or a law firm representing 
        any party in asbestos litigation or as a consultant or expert 
        witness in matters related to asbestos litigation.
    (d) Duties.--Members of the Physicians Panel shall--
            (1) make such medical determinations as are required to be 
        made by Physicians Panels under section 121; and
            (2) perform such other functions as required under this 
        Act.
    (e) Compensation.--Notwithstanding any limitation otherwise 
established under section 3109 of title 5, United States Code, the 
Administrator shall be authorized to pay members of the Physician Panel 
such compensation as is reasonably necessary to obtain their services.
    (f) Federal Advisory Committee Act.--A panel established under this 
section shall not be subject to the Federal Advisory Committee Act (5 
U.S.C. App. 2).

SEC. 106. PROGRAM STARTUP.

    (a) Interim Regulations.--Not later than 90 days after the 
enactment of this Act, the Administrator shall promulgate interim 
regulations and procedures for the processing of claims under title I 
and the operation of the Fund under title II, including procedures for 
the expediting of exigent claims.
    (b) Interim Personnel.--The Secretary of Labor and the Assistant 
Secretary of Labor for the Employment Standards Administration may make 
available to the Administrator on a temporary basis such personnel and 
other resources as may be necessary to facilitate the expeditious 
startup of the program. The Administrator may in addition contract with 
individuals or entities having relevant experience to assist in the 
expeditious startup of the program. Such relevant experience shall 
include, but not be limited to, experience with the review of workers' 
compensation, occupational disease, or similar claims and with 
financial matters relevant to the operation of the program.
    (c) Exigent Health Claims.--
            (1) In general.--The Administrator shall develop procedures 
        to provide for an expedited process to categorize, evaluate, 
        and pay exigent health claims. Such procedures shall include, 
        pending promulgation of final regulations, adoption of interim 
        regulations as needed for processing of exigent claims.
            (2) Eligible exigent health claims.--A claim shall qualify 
        for treatment as an exigent health claim if the claimant is 
        living and the claimant provides--
                    (A) documentation that a physician has diagnosed 
                the claimant as having mesothelioma; or
                    (B) a declaration or affidavit, from a physician 
                who has examined the claimant within 120 days before 
                the date of such declaration or affidavit, that the 
                physician has diagnosed the claimant as being 
                terminally ill from an asbestos-related illness and 
                having a life expectancy of less than 1 year.
            (3) Additional exigent health claims.--The Administrator 
        may, in final regulations promulgated under section 101(c), 
        designate additional categories of claims that qualify as 
        exigent health claims under this subsection.
    (d) Extreme Financial Hardship Claims.--The Administrator may, in 
final regulations promulgated under section 101(c), designate 
categories of claims to be handled on an expedited basis as a result of 
extreme financial hardship.
    (e) Interim Administrator.--Until an Administrator is appointed and 
confirmed under section 101(b), the responsibilities of the 
Administrator under this Act shall be performed by the Assistant 
Secretary of Labor for the Employment Standards Administration, who 
shall have all the authority conferred by this Act on the Administrator 
and who shall be deemed to be the Administrator for purposes of this 
Act. Before final regulations being promulgated relating to claims 
processing, the Interim Administrator may prioritize claims processing, 
without regard to the time requirements prescribed in subtitle B of 
this title, based on severity of illness and likelihood that the 
illness in question was caused by exposure to asbestos.

SEC. 107. AUTHORITY OF THE ADMINISTRATOR.

    The Administrator, on any matter within the jurisdiction of the 
Administrator under this Act, may--
            (1) issue subpoenas for and compel the attendance of 
        witnesses within a radius of 100 miles;
            (2) administer oaths;
            (3) examine witnesses; and
            (4) require the production of books, papers, documents, and 
        other evidence.

          Subtitle B--Asbestos Disease Compensation Procedures

SEC. 111. ESSENTIAL ELEMENTS OF ELIGIBLE CLAIM.

    To be eligible for an award under this Act for an asbestos-related 
disease or injury, an individual shall--
            (1) file a claim in a timely manner in accordance with 
        section 113; and
            (2) prove, by a preponderance of the evidence, that the 
        claimant suffers from an eligible disease or condition, as 
        demonstrated by evidence that meets the requirements 
        established under subtitle C.

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. FILING OF CLAIMS.

    (a) Who May Submit.--
            (1) In general.--Any individual who has suffered from a 
        disease or condition that is believed to meet the requirements 
        established under subtitle C (or the personal representative of 
        the individual, if the individual is deceased) may file a claim 
        with the Office for an award with respect to such injury.
            (2) Definition.--In this Act, the term ``personal 
        representative'' shall have the same meaning as that term is 
        defined in section 104.4 of title 28 of the Code of Federal 
        Regulations, as in effect December 31, 2003.
            (3) Limitation.--A claim may not be filed by any person 
        seeking contribution or indemnity.
    (b) Statute of Limitations.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), if an individual fails to file a claim with the Office 
        under this section within 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 asbestos claim 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 a claim under this section within 4 years 
        after such date of enactment or be barred from receiving any 
        award under this title. For purposes of this paragraph, a claim 
        shall not be treated as pending with a trust established under 
        title 11, United States Code, solely because a claimant whose 
        claim was previously compensated by the trust has or alleges--
                    (A) a non-contingent right to the payment of future 
                installments of a fixed award; or
                    (B) a contingent right to recover some additional 
                amount from the trust on the occurrence of a future 
                event, such as the reevaluation of the trust's funding 
                adequacy or projected claims experience.
            (3) Effect of multiple injuries.--
                    (A) In general.--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.
                    (B) Setoffs.--Except as provided in subparagraph 
                (C), any amounts paid or to be paid for a prior award 
                under this Act shall be deducted as a setoff against 
                amounts payable for the second injury claim.
                    (C) Exception.--Any amounts paid or to be paid for 
                a prior claim for a non-malignant disease (Levels I 
                through V) filed against the Fund shall not be deducted 
                as a setoff against amounts payable for the second 
                injury claim for a malignant disease (Levels VI through 
                X), unless the malignancy was diagnosed, or the 
                asbestos claimant had discovered facts that would have 
                led a reasonable person to obtain such a diagnosis, 
                before the date on which the non-malignancy claim was 
                compensated.
    (c) Required Information.--A claim filed under subsection (a) shall 
be in such form, and contain such information in such detail, as the 
Administrator shall by regulation prescribe. At a minimum, a claim 
shall 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 complete employment history of the claimant, 
        accompanied by social security records or a signed release 
        permitting access to such records;
            (4) a description of the asbestos exposure of the claimant, 
        including, to the extent known, information on the site, or 
        location of exposure, and duration and intensity of exposure;
            (5) a description of the tobacco product use history of the 
        claimant, including frequency and duration;
            (6) an identification and description of the asbestos-
        related diseases or conditions of the claimant, accompanied by 
        a written report by the claimant's physician with medical 
        diagnoses and x-ray films, and other test results necessary to 
        establish eligibility for an award under this Act;
            (7) a description of any prior or pending civil action or 
        other claim brought by the claimant for asbestos-related injury 
        or any other pulmonary, parenchymal or pleural injury, 
        including an identification of any recovery of compensation or 
        damages through settlement, judgment, or otherwise; and
            (8) for any claimant who asserts that he or she is a 
        nonsmoker or an ex-smoker, as defined in section 131, for 
        purposes of an award under Malignant Level VI, Malignant Level 
        VII, Malignant Level VIII, or Malignant Level IX, evidence to 
        support the assertion of nonsmoking or ex-smoking, including 
        relevant medical records.
    (d) Date of Filing.--A claim shall be considered to be filed on the 
date that the claimant mails the claim to the Office, as determined by 
postmark, or on the date that the claim is received by the Office, 
whichever is the earliest determinable date.
    (e) Incomplete Claims.--If a claim filed under subsection (a) is 
incomplete, the Administrator shall notify the claimant of the 
information necessary to complete the claim and inform the claimant of 
such services as may be available through the Claimant Assistance 
Program established under section 104 to assist the claimant in 
completing the claim. Any time periods for the processing of the claim 
shall be suspended until such time as the claimant submits the 
information necessary to complete the claim. If such information is not 
received within 1 year after the date of such notification, the claim 
shall be dismissed.

SEC. 114. ELIGIBILITY DETERMINATIONS AND CLAIM AWARDS.

    (a) In General.--
            (1) Review of claims.--The Administrator shall, in 
        accordance with this section, determine whether each claim 
        filed under this Act satisfies the requirements for eligibility 
        for an award under this Act and, if so, the value of the award. 
        In making such determinations, the Administrator shall consider 
        the claim presented by the claimant, the factual and medical 
        evidence submitted by the claimant in support of the claim, the 
        medical determinations of any Physicians Panel to which a claim 
        is referred under section 121, and the results of such 
        investigation as the Administrator may deem necessary to 
        determine whether the claim satisfies the criteria for 
        eligibility established by this Act.
            (2) Additional evidence.--The Administrator may request the 
        submission of medical evidence in addition to the minimum 
        requirements of section 113(c) if necessary or appropriate to 
        make a determination of eligibility for an award, in which case 
        the cost of obtaining such additional information or testing 
        shall be borne by the Office.
    (b) Proposed Decisions.--Not later than 90 days after the filing of 
a claim, the Administrator shall provide to the claimant (and the 
claimant's representative) a proposed decision accepting or rejecting 
the claim in whole or in part and specifying the amount of the proposed 
award, if any. The proposed decision shall be in writing, shall contain 
findings of fact and conclusions of law, and shall contain an 
explanation of the procedure for obtaining review of the proposed 
decision.
    (c) Review of Proposed Decisions.--
            (1) Right to hearing.--
                    (A) In general.--Any claimant not satisfied with a 
                proposed decision of the Administrator under subsection 
                (b) shall be entitled, on written request made within 
                90 days after the date of the issuance of the decision, 
                to a hearing on the claim of that claimant before a 
                representative of the Administrator. At the hearing, 
                the claimant shall be entitled to present oral evidence 
                and written testimony in further support of that claim.
                    (B) Conduct of hearing.--When practicable, the 
                hearing will be set at a time and place convenient for 
                the claimant. In conducting the hearing, the 
                representative of the Administrator shall not be bound 
                by common law or statutory rules of evidence, by 
                technical or formal rules of procedure, or by section 
                554 of title 5, United States Code, except as provided 
                by this Act, but shall conduct the hearing in such 
                manner as to best ascertain the rights of the claimant. 
                For this purpose, the representative shall receive such 
                relevant evidence as the claimant adduces and such 
                other evidence as the representative determines 
                necessary or useful in evaluating the claim.
                    (C) Request for subpoenas.--
                            (i) In general.--A claimant may request a 
                        subpoena but the decision to grant or deny such 
                        a request is within the discretion of the 
                        representative of the Administrator. The 
                        representative may issue subpoenas for the 
                        attendance and testimony of witnesses, and for 
                        the production of books, records, 
                        correspondence, papers or other relevant 
                        documents. Subpoenas are issued for documents 
                        only if they are relevant and cannot be 
                        obtained by other means, and for witnesses only 
                        where oral testimony is the best way to 
                        ascertain the facts.
                            (ii) Request.--A claimant may request a 
                        subpoena only as part of the hearing process. 
                        To request a subpoena, the requester shall--
                                    (I) submit the request in writing 
                                and send it to the representative as 
                                early as possible, but no later than 
30 days after the date of the original hearing request; and
                                    (II) explain why the testimony or 
                                evidence is directly relevant to the 
                                issues at hand, and a subpoena is the 
                                best method or opportunity to obtain 
                                such evidence because there are no 
                                other means by which the documents or 
                                testimony could have been obtained.
                            (iii) Fees and mileage.--Any person 
                        required by such subpoena to attend as a 
                        witness shall be allowed and paid the same fees 
                        and mileage as are paid witnesses in the 
                        district courts of the United States.
            (2) Review of written record.--In lieu of a hearing under 
        paragraph (1), any claimant not satisfied with a proposed 
        decision of the Administrator shall have the option, on written 
        request made within 90 days after the date of the issuance of 
        the decision, of obtaining a review of the written record by a 
        representative of the Administrator. If such review is 
        requested, the claimant shall be afforded an opportunity to 
        submit any written evidence or argument which he or she 
        believes relevant.
    (d) Final Decisions.--
            (1) In general.--If the period of time for requesting 
        review of the proposed decision expires and no request has been 
        filed, or if the claimant waives any objections to the proposed 
        decision, the Administrator shall issue a final decision. If 
        such decision materially differs from the proposed decision, 
        the claimant shall be entitled to review of the decision under 
        subsection (c).
            (2) Time and content.--If the claimant requests review of 
        all or part of the proposed decision the Administrator shall 
        issue a final decision on the claim not later than 180 days 
        after the request for review is received, if the claimant 
        requests a hearing, or not later than 90 days after the request 
        for review is received, if the claimant requests review of the 
        written record. Such decision shall be in writing and contain 
        findings of fact and conclusions of law.
    (e) Representation.--A claimant may authorize an attorney or other 
individual to represent him or her in any proceeding under this Act.

SEC. 115. MEDICAL EVIDENCE AUDITING PROCEDURES.

    (a) In General.--
            (1) Development.--The Administrator shall develop methods 
        for auditing and evaluating the medical evidence submitted as 
        part of a claim. The Administrator may develop additional 
        methods for auditing and evaluating other types of evidence or 
        information received by the Administrator.
            (2) Refusal to consider certain evidence.--
                    (A) In general.--If the Administrator determines 
                that an audit conducted in accordance with the methods 
                developed under paragraph (1) 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, any medical evidence from such physician or 
                facility shall be unacceptable for purposes of 
                establishing eligibility for an award under this Act.
                    (B) Notification.--Upon a determination by the 
                Administrator under subparagraph (A), the Administrator 
                shall notify the physician or medical facility involved 
                of the results of the audit. Such physician or facility 
                shall have a right to appeal such determination under 
                procedures issued by the Administrator.
    (b) Review of Certified B-Readers.--
            (1) In general.--At a minimum, the Administrator shall 
        prescribe procedures to randomly assign claims for evaluation 
        by an independent certified B-reader of x-rays submitted in 
        support of a claim, the cost of which shall be borne by the 
        Office.
            (2) Disagreement.--If an independent certified B-reader 
        assigned under paragraph (1) disagrees with the quality grading 
        or ILO level assigned to an x-ray submitted in support of a 
        claim, the Administrator shall require a review of such x-rays 
        by a second independent certified B-reader.
            (3) Effect on claim.--If neither certified B-reader under 
        paragraph (2) agrees with the quality grading and the ILO grade 
        level assigned to an x-ray as part of the claim, the 
        Administrator shall take into account the findings of the 2 
        independent B readers in making the determination on such 
        claim.
            (4) 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.
    (c) Smoking Assessment.--
            (1) In general.--
                    (A) Records and documents.--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 Malignant Level 
                VI, Malignant Level VII, Malignant Level VIII, 
                Malignant Level IX, and exceptional medical claims, the 
                Administrator shall have the authority to obtain 
                relevant records and documents, including--
                            (i) records of past medical treatment and 
                        evaluation;
                            (ii) affidavits of appropriate individuals;
                            (iii) applications for insurance and 
                        supporting materials; and
                            (iv) employer records of medical 
                        examinations.
                    (B) Consent.--The claimant shall provide consent 
                for the Administrator to obtain such records and 
                documents where required.
            (2) Review.--The frequency of review of records and 
        documents submitted under paragraph (1)(A) shall be at the 
        discretion of the Administrator, but shall address at least 5 
        percent of the claimants asserting status as nonsmokers or ex-
        smokers.
            (3) Consent.--The Administrator may require the performance 
        of blood tests or any other appropriate medical test where 
        claimants assert they are nonsmokers or ex-smokers for purposes 
        of an award under Malignant Level VI, Malignant Level VII, 
        Malignant Level VIII, Malignant Level IX, or as an exceptional 
        medical claim, the cost of which shall be borne by the Office.
            (4) Penalty for false statements.--Any false information 
        submitted under this subsection shall be subject to criminal 
        prosecution or civil penalties as provided under section 1348 
        of title 18, United States Code (as added by this Act) and 
        section 101(c)(2).

                      Subtitle C--Medical Criteria

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.--
                    (A) In general.--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--
                            (i) handled raw asbestos fibers;
                            (ii) fabricated asbestos-containing 
                        products so that the claimant in the 
                        fabrication process was exposed to raw asbestos 
                        fibers;
                            (iii) altered, repaired, or otherwise 
                        worked with an asbestos-containing product such 
                        that the claimant was exposed on a regular 
                        basis to asbestos fibers; or
                            (iv) worked in close proximity to other 
                        workers engaged in the activities described 
                        under clause (i), (ii), or (iii) such that the 
                        claimant was exposed on a regular basis to 
                        asbestos fibers.
                    (B) Regular basis.--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 a Physicians Panel.
    (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 a Physicians Panel.
            (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 Administrator 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 Administrator shall require.
            (5) Exposure presumptions.--The Administrator shall 
        prescribe rules identifying specific industries, occupations 
        within those industries, and time periods for which substantial 
        occupational exposure (as defined under section 121(a)) shall 
        be a rebuttable presumption for asbestos claimants who provide 
        meaningful and credible evidence that the claimant worked in 
        that industry and occupation during such time periods. The 
        Administrator may provide evidence to rebut this presumption.
    (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 physicians panel.--All claims filed 
                with respect to Level VI under this paragraph shall be 
                referred to a Physicians Panel 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 
                Physicians Panel that rebuts that presumption.
                    (C) Request for referral to physicians panel.--A 
                claimant filing a claim with respect to Level VI under 
                this paragraph may request that the claim be referred 
                to a Physicians Panel for a determination on amount of 
                award. In making its determination under this 
                subparagraph, the Physicians Panel 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) Physicians panel.--All claims filed relating to 
                Level VII under this paragraph shall be referred to a 
                Physicians Panel for a determination on the amount of 
                award. In making its determination under this 
                subparagraph, the Physicians Panel 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 plaques 
                        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) Physicians panel.--A claimant filing a claim 
                relating to Level VIII under this paragraph may request 
                that the claim be referred to a Physicians Panel for a 
                determination on amount of award. In making its 
                determination under this subparagraph, the Physicians 
                Panel 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) Physicians panel.--A claimant filing a claim 
                with respect to Level IX under this paragraph may 
                request that the claim be referred to a Physicians 
                Panel for a determination on amount of award. In making 
                its determination under this subparagraph, the 
                Physicians Panel 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 a Physicians Panel under section 
                        121(f) for a determination 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 
        Administrator, the Advisory Committee on Asbestos Disease 
        Compensation or the Medical Advisory Committee, and the 
        Physicians Panels. The Administrator and the Physicians Panels 
        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 Administrator has evidence 
        that there have been advancements in science that would require 
        additional study, the Administrator 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 Administrator; and
                            (iii) a detailed explanation as to why the 
                        claim meets the requirements of paragraph 
                        (4)(B).
            (4) Review.--
                    (A) In general.--The Administrator shall refer all 
                applications and supporting documentation submitted 
                under paragraph (2) to a Physicians Panel 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.--A Physicians Panel 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 Physicians Panel 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 Physicians Panel shall 
                submit the claim to the Administrator, 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 Administrator 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 a Physicians Panel 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 Physicians 
        Panel 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 Physicians Panel 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 111 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 
        121, shall be eligible for an award according to the following 
        schedule:
      

             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     $85,000
                IV                            Severe Asbestosis                $400,000
                V                             Disabling Asbestosis             $850,000
                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;
                                                                               non-smokers receive between
                                                                                $225,000-$600,000
                VIII                          Lung Cancer With Pleural         smokers receive between $150,000-
                                             Disease                            $250,000;
                                                                               ex-smokers receive between
                                                                                $400,000-$600,000;
                                                                               non-smokers receive between
                                                                                $600,000-$1,000,000
                IX                            Lung Cancer With Asbestosis      smokers receive between $450,000-
                                                                                $550,000;
                                                                               ex-smokers receive between
                                                                                $650,000-$950,000;
                                                                               non-smokers 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.
            (4) Medical monitoring.--An asbestos claimant with 
        asymptomatic exposure, based on the criteria under section 
        121(d)(1), shall only be eligible for medical monitoring 
        reimbursement as provided under section 132.
            (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 a claim 
under this Act 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 113(b).
    (b) Costs.--Reimbursable medical monitoring costs shall include the 
costs of a claimant not covered by health insurance for an examination 
by the claimant's physician, 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. PAYMENT.

    (a) Structured Payments.--
            (1) In general.--An asbestos claimant who is entitled to an 
        award should receive the amount of the award through structured 
        payments from the Fund, made over a period of 3 years, and in 
        no event more than 4 years after the date of final adjudication 
        of the claim.
            (2) Payment period and amount.--There shall be a 
        presumption that any award paid under this subsection shall 
        provide for payment of--
                    (A) 40 percent of the total amount in year 1;
                    (B) 30 percent of the total amount in year 2; and
                    (C) 30 percent of the total amount in year 3.
            (3) Extension of payment period.--
                    (A) In general.--The Administrator shall develop 
                guidelines to provide for the payment period of an 
                award under subsection (a) to be extended to a 4-year 
                period if such action is warranted in order to preserve 
                the overall solvency of the Fund. Such guidelines shall 
                include reference to the number of claims made to the 
                Fund and the awards made and scheduled to be paid from 
                the Fund as provided under section 405.
                    (B) Limitations.--In no event shall less than 50 
                percent of an award be paid in the first 2 years of the 
                payment period under this subsection.
            (4) 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.
            (5) 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.
            (6) 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.--A claim filed under this Act 
shall not be assignable or otherwise transferable under this Act.
    (c) Creditors.--An award under this title shall be exempt from all 
claims of creditors and from levy, execution, and attachment or other 
remedy for recovery or collection of a debt, and such exemption may not 
be waived.
    (d) 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).
    (e) Exempt Property in Asbestos Claimant's Bankruptcy Case.--If an 
asbestos claimant files a petition for relief under section 301 of 
title 11, United States Code, no award granted under this Act shall be 
treated as property of the bankruptcy estate of the asbestos claimant 
in accordance with section 541(b)(6) of title 11, United States Code.

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.
    (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.

            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.
            (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, and the substantial consummation, as 
                        such term is defined in section 1101(2) of 
                        title 11, United States Code, of such plan of 
                        reorganization has occurred.
            (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.
            (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.
            (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.
            (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 activity 
                or dispute 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, as a result of 
operations as a common carrier by railroad, including settlement, 
judgment, defense, or indemnity costs associated with these claims.
            (8) Trust.--The term ``trust'' means any trust, as 
        described in sections 524(g)(2)(B)(i) or 524(h) of title 11, 
        United States Code, or established in conjunction with an order 
        issued under section 105 of title 11, United States Code, 
        established or formed under the terms of a chapter 11 plan of 
        reorganization, which in whole or in part provides compensation 
        for asbestos claims.
            (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 (other than a natural person).

SEC. 202. AUTHORITY AND TIERS.

    (a) Liability for Payments to the Fund.--
            (1) In general.--Defendant participants shall be liable for 
        payments to the Fund in accordance with this section based on 
        tiers and subtiers assigned to defendant participants.
            (2) Aggregate payment obligations level.--Subject only to 
        section 204(m), and notwithstanding any other provision of this 
        Act, the total payments required of all defendant participants 
        over the life of the Fund shall not exceed $57,500,000,000. The 
        Administrator shall have the authority to allocate the payments 
        required of the defendant participants among the tiers as 
        provided in this title.
            (3) Ability to enter reorganization.--Notwithstanding any 
        other provision of this Act, all debtors that, together with 
        all of their direct or indirect majority-owned subsidiaries, 
        have prior asbestos expenditures less than $1,000,000 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. Any asbestos claim made in conjunction with a plan 
        of reorganization allowable under the preceding sentence shall 
        be subject to section 403(d) of this Act.
    (b) Tier I.--Tier I shall include 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 a petition for relief under chapter 11, 
                of title 11, United States Code, before January 1, 
                2003;
                    (B) has not confirmed a plan of reorganization as 
                of the date of enactment of this Act; and
                    (C) the 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. 
                        Any review of this determination must be an 
                        expedited appeal and limited to whether the 
                        decision was against the weight of the 
                        evidence.
            (2) Proceeding with reorganization plan.--A bankrupt 
        business entity may proceed with the filing, solicitation, and 
        confirmation of a plan of reorganization that does not comply 
        with the requirements of this Act, including a trust and 
        channeling injunction described in section 524(g) of title 11, 
        United States Code, notwithstanding any other provisions of 
        this Act, if--
                    (A) on request of a party in interest or on a 
                motion of the court, and after a notice and a hearing, 
                the bankruptcy court presiding over the chapter 11 case 
                of the bankrupt business entity determines that--
                            (i) confirmation is necessary to permit the 
                        reorganization of that entity and assure that 
                        all creditors and that entity are treated 
                        fairly and equitably; and
                            (ii) confirmation is clearly favored by the 
                        balance of the equities; and
                    (B) an order confirming the plan of reorganization 
                is entered by the bankruptcy court within 9 months 
                after the date of enactment of this Act or such longer 
                period of time approved by the bankruptcy court for 
                cause shown.
            (3) Applicability.--If the bankruptcy court does not make 
        the required determination, or if an order confirming the plan 
        is not entered within 9 months after the effective date of this 
        Act or such longer period of time approved by the bankruptcy 
        court for cause shown, the provisions of this Act shall apply 
        to the bankrupt business entity notwithstanding the 
        certification. Any timely appeal under title 11, United States 
        Code, from a confirmation order entered during the applicable 
        time period shall automatically extend the time during which 
        this Act is inapplicable to the bankrupt business entity, until 
        the appeal is fully and finally resolved.
            (4) Offsets.--
                    (A) Payments by insurers.--To the extent that a 
                bankrupt business entity or debtor successfully 
                confirms a plan of reorganization, including a trust, 
                and channeling injunction that involves payments by 
                insurers who are otherwise subject to this Act as 
                described in section 524(g) of title 11, United States 
                Code, an insurer who makes payments to the trust, 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 described 
                in 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 subsection (b) of 
this section and section 204, persons or affiliated groups are included 
in 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) Tier Placement and Costs.--
            (1) Permanent tier placement.--After a defendant 
        participant or affiliated group is assigned to a tier and 
        subtier under section 204(i)(6), the participant or affiliated 
        group shall remain in that tier and subtier 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 of debt in bankruptcy;
                    (C) the confirmation of a plan of reorganization; 
                or
                    (D) the sale or transfer of assets to any other 
                person or affiliated group,
        unless the Administrator finds that the information submitted 
        by the participant or affiliated group to support its inclusion 
        in that tier was inaccurate.
            (2) Costs.--Payments 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 title 
                11, United States Code, 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.--
            (1) In general.--All of the following shall be superseded 
        in their entireties by this Act:
                    (A) The treatment of any asbestos claim in any plan 
                of reorganization with respect to any debtor included 
                in Tier I.
                    (B) Any asbestos claim against any debtor included 
                in Tier I.
                    (C) Any agreement, understanding, or undertaking by 
                any such debtor or any third party with respect to the 
                treatment of any asbestos claim filed in a debtor's 
                bankruptcy case or with respect to a debtor before the 
                date of enactment of this Act, whenever such debtor's 
                case is either still pending, if such case is pending 
                under a chapter other than chapter 11 of title 11, 
                United States Code, or subject to confirmation or 
                substantial consummation of a plan of reorganization 
                under chapter 11 of title 11, United States Code.
            (2) Prior agreements of no effect.--Any plan of 
        reorganization, agreement, understanding, or undertaking by any 
        debtor or any third party under paragraph (1) of this 
        subsection, to the extent it relates to any asbestos claim, 
        shall be of no force or effect, and no person shall have any 
        right or claim with respect to any of the foregoing.

SEC. 203. SUBTIERS.

    (a) In General.--
            (1) Subtier liability.--Except as otherwise provided under 
        subsections (b), (d), and (l) of section 204, persons or 
        affiliated groups shall be included within Tiers I through VII 
        and shall pay amounts to the Fund 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 the Securities Exchange 
                Act of 1934 (15 U.S.C. 78a et seq.) for the most recent 
                fiscal year ending on or before December 31, 2002. If 
                the defendant participant or affiliated group does not 
                file reports with the Securities and Exchange 
                Commission, revenues shall be the amount that the 
                defendant participant or affiliated group 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 payment 
                obligation of that defendant participant under this 
                subtitle.
                    (C) 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 
                included in 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 or 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 
                or 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.--Each debtor in Tier I shall be included in 
        subtiers and shall pay amounts 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 included in Subtier 1.
                    (B) Payment.--Each debtor included in Subtier 1 
                shall pay on an annual basis 1.5184 percent of the 
                debtor's 2002 revenues.
                    (C) Other assets.--The Administrator, at the sole 
                discretion of the Administrator, may allow a Subtier 1 
                debtor to satisfy its funding obligation under this 
                paragraph with assets other than cash if the 
                Administrator determines that requiring an all-cash 
payment of the debtor's funding obligation would render the debtor's 
reorganization infeasible.
                    (D) Liability.--
                            (i) In general.--If a person who is subject 
                        to a case pending under a chapter of title 11, 
                        United States Code, as defined in section 
                        201(3)(A)(i), does not pay when due any payment 
                        obligation for the debtor, the Administrator 
                        shall have the right to seek payment of all or 
                        any portion of the entire amount due (as well 
                        as any other amount for which the debtor may be 
                        liable under sections 223 and 224) from any of 
                        the direct or indirect majority-owned 
                        subsidiaries under section 201(3)(A)(ii).
                            (ii) Cause of action.--Notwithstanding 
                        section 221(e), this Act shall not preclude 
                        actions among persons within a debtor under 
                        section 201(3)(A) (i) and (ii) with respect to 
                        the payment obligations under this Act.
            (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 the 
                settlement of asbestos claims shall be included in 
                Subtier 2.
                    (B) Assignment of assets.--Not later than 90 days 
                after the date of enactment of this Act, each person 
                included in 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 included in Subtier 3.
                    (B) Assignment of unencumbered assets.--Not later 
                than 90 days after the date of enactment of this Act, 
                each person included in 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) allowable priority claims under 
                        section 507 of title 11, United States Code; 
                        and
                            (iii) allowable 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 included in 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.--Each person or affiliated group in Tier II 
        shall be included in 1 of the 5 subtiers of Tier II, 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 included in Subtier 1;
                    (B) those persons or affiliated groups with the 
                next highest revenues included in Subtier 2;
                    (C) those persons or affiliated groups with the 
                lowest revenues included in Subtier 5;
                    (D) those persons or affiliated groups with the 
                next lowest revenues included in Subtier 4; and
                    (E) those persons or affiliated groups remaining 
                included in Subtier 3.
            (2) Payments.--Each person or affiliated group within each 
        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.--Each person or affiliated group in Tier 
        III shall be included in 1 of the 5 subtiers of Tier III, 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 included in Subtier 1;
                    (B) those persons or affiliated groups with the 
                next highest revenues included in Subtier 2;
                    (C) those persons or affiliated groups with the 
                lowest revenues included in Subtier 5;
                    (D) those persons or affiliated groups with the 
                next lowest revenues included in Subtier 4; and
                    (E) those persons or affiliated groups remaining 
                included in Subtier 3.
            (2) Payments.--Each person or affiliated group within each 
        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.--Each person or affiliated group in Tier IV 
        shall be included in 1 of the 4 subtiers of Tier IV, 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 included in Subtier 2 and the rest in Subtier 
        3.
            (2) Payment.--Each person or affiliated group within each 
        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.--Each person or affiliated group in Tier V 
        shall be included in 1 of the 3 subtiers of Tier V, 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 each 
        subtier shall pay, on an annual basis, the following:
                    (A) Subtier 1: $1,000,000.
                    (B) Subtier 2: $500,000.
                    (C) Subtier 3: $200,000.
    (g) Tier VI Subtiers.--
            (1) In general.--Each person or affiliated group in Tier VI 
        shall be included in 1 of the 3 subtiers of Tier VI, 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 each 
        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 prior asbestos 
        expenditures that might qualify a person or affiliated group to 
        be included in Tiers II, III, IV, V, or VI, a person or 
        affiliated group shall also be included in Tier VII, if the 
        person or affiliated group--
                    (A) is or has at any time been 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) has paid (including any payments made by others 
                on behalf of such person or affiliated group) not less 
                than $5,000,000 in settlement, judgment, defense, or 
                indemnity costs relating to such claims.
            (2) Additional amount.--The payment requirement for persons 
        or affiliated groups included in Tier VII shall be in addition 
        to any payment requirement applicable to such person or 
        affiliated group under Tiers II through VI.
            (3) Subtier 1.--Each person or affiliated group in Tier VII 
        with revenues of $5,000,000,000 or more is included in Subtier 
        1 and shall make annual payments of $10,000,000 to the Fund.
            (4) Subtier 2.--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 is included in Subtier 2 and shall make annual 
        payments of $5,000,000 to the Fund.
            (5) Subtier 3.--Each person or affiliated group in Tier VII 
        with revenues of less than $3,000,000,000, but not less than 
        $500,000,000 is included in Subtier 3 and shall make annual 
        payments of $500,000 to 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 payment amount 
                under this provision.

SEC. 204. ASSESSMENT ADMINISTRATION.

    (a) In General.--Subject to subsection (m), each defendant 
participant or affiliated group shall pay to the Fund in the amounts 
provided under this subtitle as appropriate for its tier and subtier 
each year until the earlier to occur of the following:
            (1) The participant or affiliated group has satisfied its 
        obligations under this subtitle during the first 23 annual 
        payment cycles of the operation of the Fund.
            (2) The amount received by the Fund from defendant 
        participants, excluding any amounts rebated to defendant 
        participants under subsection (d), equals the maximum aggregate 
        payment obligation of section 202(a)(2).
    (b) Small Business Exemption.--Notwithstanding any other provision 
of this subtitle, 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 payment 
requirement under this subtitle and shall not be included in the 
subtier allocations under section 203.
    (c) Procedures.--The Administrator shall prescribe procedures on 
how amounts payable under this subtitle are to be paid, including, to 
the extent the Administrator determines appropriate, procedures 
relating to payment in installments.
    (d) Adjustments.--
            (1) In general.--Under expedited procedures established by 
        the Administrator, a defendant participant may seek adjustment 
        of the amount of its payment obligation 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. A 
        defendant participant has a right to obtain a rehearing of the 
        Administrator's determination under this subsection under the 
        procedures prescribed in subsection (i)(10). The Administrator 
        may adjust a defendant participant's payment obligations under 
        this subsection, either by forgiving the relevant portion of 
        the otherwise applicable payment obligation or by providing 
        relevant rebates from the defendant hardship and inequity 
        adjustment account created under subsection (j) after payment 
        of the otherwise applicable payment obligation, at the 
        discretion of the Administrator.
            (2) Financial hardship adjustments.--
                    (A) In general.--A defendant participant may apply 
                for an adjustment based on financial hardship at any 
                time during the period in which a payment obligation to 
                the Fund remains outstanding and may qualify for such 
                adjustment by demonstrating that the amount of its 
                payment obligation under the statutory allocation would 
                constitute a severe financial hardship.
                    (B) Term.--Subject to the annual availability of 
                funds in the defendant hardship and inequity adjustment 
                account established under subsection (j), a financial 
                hardship adjustment under this subsection shall have a 
                term of 3 years.
                    (C) Renewal.--After an initial hardship adjustment 
                is granted under this paragraph, a defendant 
                participant may renew its hardship adjustment by 
                demonstrating that it remains justified.
                    (D) Reinstatement.--Following the expiration of the 
                hardship adjustment period provided for under this 
                section and during the funding period prescribed under 
                subsection (a) or (m), the Administrator shall annually 
                determine whether there has been a material change in 
                the financial condition of the defendant participant 
                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 or all of the defendant 
                participant's payment obligation under the statutory 
                allocation that was not paid during the hardship 
                adjustment term.
            (3) Inequity adjustments.--
                    (A) In general.--A defendant participant--
                            (i) may qualify for an adjustment based on 
                        inequity by demonstrating that the amount of 
                        its payment obligation under the statutory 
                        allocation is exceptionally inequitable--
                                    (I) when measured against the 
                                amount of the likely cost to the 
                                defendant participant net of insurance 
                                of its future liability in the tort 
                                system in the absence of the Fund; or
                                    (II) when compared to the median 
                                payment rate for all defendant 
                                participants 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 subtier adjustment reducing the 
                        defendant participant's payment obligation 
                        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 before the date of 
                        enactment of this Act.
                    (B) Payment rate.--For purposes of subparagraph 
                (A), the payment rate of a defendant participant is the 
                payment amount of the defendant participant as a 
                percentage of such defendant participant's gross 
                revenues for the year ending December 31, 2002.
                    (C) Term.--Subject to the annual availability of 
                funds in the defendant hardship and inequity adjustment 
                account established under subsection (j), an inequity 
                adjustment under this subsection shall have a term of 3 
                years.
                    (D) Renewal.--A defendant participant may renew an 
                inequity adjustment every 3 years by demonstrating that 
                the adjustment remains justified.
                    (E) Reinstatement.--
                            (i) In general.--Following the termination 
                        of an inequity adjustment under subparagraph 
                        (A), and during the funding period prescribed 
                        under subsection (a) or (m), 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 participant's payment 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 payment obligations of the defendant 
                        participant 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 
                        participant to pay any part or all of amounts 
                        not paid due to the inequity adjustment on such 
                        terms and conditions as established by the 
                        Administrator.
            (4) Limitation on adjustments.--The aggregate total of 
        financial hardship adjustments under paragraph (2) and inequity 
        adjustments under paragraph (3) in effect in any given year 
        shall not exceed $250,000,000, except to the extent additional 
        monies are available for such adjustments as a result of 
        carryover of prior years' funds under subsection (j)(3) or as a 
        result of monies being made available in that year under 
        subsection (k)(1)(A).
            (5) 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 advice.
    (e) Limitation on Liability.--The liability of each defendant 
participant to pay to the Fund shall be limited to the payment 
obligations under this Act, and, except as provided in subsection (f) 
and section 203(b)(2)(D), no defendant participant shall have any 
liability for the payment obligations of any other defendant 
participant.
    (f) Consolidation of Payments.--
            (1) In general.--For purposes of determining the payment 
        levels of defendant participants, any affiliated group 
        including 1 or more defendant participants may irrevocably 
        elect, as part of the submissions to be made under paragraphs 
        (1) and (3) of subsection (i), to report on a consolidated 
        basis all of the information necessary to determine the payment 
        level under this subtitle and pay 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 with respect to 
                the assessment of a single annual payment under this 
                subtitle for the entire affiliated group;
                    (B) the ultimate parent of the affiliated group 
                shall prepare and submit each 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 amount due from the affiliated 
                group under this subtitle, except that, if the ultimate 
                parent does not pay when due any payment obligation for 
                the affiliated group, the Administrator shall have the 
                right to seek payment of all or any portion of the 
                entire amount due (as well as any other amount for 
                which the affiliated group may be liable under sections 
                223 and 224) 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.
            (3) Cause of action.--Notwithstanding section 221(e), this 
        Act shall not preclude actions among persons within an 
        affiliated group with respect to the payment obligations under 
        this Act.
    (g) Determination of Prior Asbestos Expenditures.--
            (1) In general.--For purposes of determining a defendant 
        participant's prior asbestos expenditures, 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 expenditures, rather than the indemnitee's prior 
        asbestos expenditures, 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 
        expenditures 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; 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 Annual Payments.--
            (1) In general.--Except as provided under subsection (m), 
        the aggregate annual payments of defendant participants to the 
        Fund shall be at least $2,500,000,000 for each calendar year in 
        the first 23 years of the Fund, or until such shorter time as 
        the condition set forth in subsection (a)(2) of this section is 
        attained.
            (2) Guaranteed payment account.--To the extent payments in 
        accordance with sections 202 and 203 (as modified by 
        subsections (b), (d), (f) and (g) of this section) fail in any 
        year to raise at least $2,500,000,000 net of any adjustments 
        under subsection (d), the balance needed to meet this required 
        minimum aggregate annual payment shall be obtained from the 
        defendant guaranteed payment account established under 
        subsection (k).
            (3) Guaranteed payment surcharge.--To the extent the 
        procedure set forth in paragraph (2) is insufficient to satisfy 
        the required minimum aggregate annual payment net of any 
        adjustments under subsection (d), the Administrator may assess 
        a guaranteed payment surcharge under subsection (l).
    (i) Procedures for Making Payments.--
            (1) Initial year: tiers ii-vi.--
                    (A) In general.--Not later than 180 days after 
                enactment of this Act, each defendant participant that 
                is included in Tiers II, III, IV, V, or VI shall file 
                with the Administrator--
                            (i) a statement of whether the defendant 
                        participant irrevocably elects to report on a 
                        consolidated basis under subsection (f);
                            (ii) a good faith estimate of its prior 
                        asbestos expenditures;
                            (iii) a statement of its 2002 revenues, 
                        determined in accordance with section 
                        203(a)(2); and
                            (iv) payment in the amount specified in 
                        section 203 for the lowest subtier of the tier 
                        within which the defendant participant falls, 
                        except that if the defendant participant, or 
                        the affiliated group including the defendant 
                        participant, had 2002 revenues exceeding 
                        $3,000,000,000, it or its affiliated group 
                        shall pay the amount specified for Subtier 3 of 
                        Tiers II, III, or IV or Subtier 2 of Tiers V or 
                        VI, depending on the applicable Tier.
                    (B) Relief.--The Administrator shall establish 
                procedures to grant a defendant participant relief from 
                its initial payment obligation where the participant 
                shows that it is likely to qualify for a financial 
                hardship adjustment, and that failure to provide 
                interim relief would cause severe irreparable harm. The 
                Administrator's refusal to grant such relief is subject 
                to immediate judicial review under section 303.
            (2) Initial year: tier i.--Not later than 90 days after 
        enactment of this Act, each debtor shall file with the 
        Administrator--
                    (A) a statement identifying the bankruptcy case(s) 
                associated with the debtor;
                    (B) a statement whether its prior asbestos 
                expenditures exceed $1,000,000;
                    (C) a statement whether it has material continuing 
                business operations and, if not, whether it holds cash 
                or other assets that have been allocated or earmarked 
                for asbestos settlements;
                    (D) in the case of debtors falling within Subtier 1 
                of Tier I, a statement of the debtor's 2002 revenues, 
                determined in accordance with section 203(a)(2), and a 
                payment under section 203(b)(2)(B);
                    (E) in the case of debtors falling within Subtier 2 
                of Tier I, an assignment of its assets under section 
                203(b)(3)(B); and
                    (F) in the case of debtors falling within Subtier 3 
                of Tier I, a payment under section 203(b)(4)(B), and a 
                statement of how such payment was calculated.
            (3) Initial year: tier vii.--Not later than 90 days after 
        enactment of this Act, each defendant participant in Tier VII 
        shall file with the Administrator--
                    (A) a good faith estimate of all payments of the 
                type described in section 203(h)(1) (as modified by 
                section 203(h)(6));
                    (B) a statement of revenues calculated in 
                accordance with sections 203(a)(2) and 203(h); and
                    (C) payment in the amount specified in section 
                203(h).
            (4) Notice to participants.--Not later than 240 days after 
        enactment of this Act, 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 payment to the Fund; and
                    (B) publish in the Federal Register a notice 
                setting forth the criteria in this Act, and as 
                prescribed by the Administrator in accordance with this 
                Act, for paying under this subtitle as a defendant 
                participant and requiring any person who may be a 
                defendant participant to submit such information.
            (5) Response required.--
                    (A) In general.--Any person who receives notice 
                under paragraph (4)(A), and any other person meeting 
                the criteria specified in the notice published under 
                paragraph (4)(B), shall provide the Administrator with 
                an address to send any notice from the Administrator in 
                accordance with this Act and all the information 
                required by the Administrator in accordance with this 
                subsection no later than 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.
                    (C) Consent to audit authority.--The response 
                submitted under subparagraph (A) shall include, on 
                behalf of the defendant participant or affiliated 
                group, a consent to the Administrator's audit authority 
                under section 221(d).
            (6) Notice of initial determination.--
                    (A) In general.--Not later than 60 days after 
                receiving a response under paragraph (5), the 
                Administrator shall send the person a notice of initial 
                determination identifying the tier and subtier, if any, 
                into which the person falls and the annual payment 
                obligation, if any, to the Fund, which determination 
                shall be based on the information received from the 
                person under this subsection and any other pertinent 
                information available to the Administrator and 
                identified to the defendant participant.
                    (B) No response; incomplete response.--If no 
                response in accordance with paragraph (5) is received 
                from a defendant participant, or if the response is 
                incomplete, the initial determination shall be based on 
                the best information available to the Administrator.
                    (C) Payments.--Within 30 days of receiving a notice 
                of initial determination requiring payment, the 
                defendant participant shall pay the Administrator the 
                amount required by the notice, after deducting any 
                previous payment made by the participant under this 
                subsection. If the amount that the defendant 
                participant is required to pay is less than any 
                previous payment made by the participant under this 
                subsection, the Administrator shall credit any excess 
                payment against the future payment obligations of that 
                defendant participant. The pendency of a petition for 
                rehearing under paragraph (10) shall not stay the 
                obligation of the participant to make the payment 
                specified in the Administrator's notice.
            (7) Exemptions for information required.--
                    (A) Prior asbestos expenditures.--In lieu of 
                submitting information related to prior asbestos 
                expenditures as may be required for purposes of this 
                subtitle, a non-debtor defendant participant may 
                consent to be assigned to Tier II.
                    (B) Revenues.--In lieu of submitting information 
                related to revenues as may be required for purposes of 
                this subtitle, a non-debtor defendant participant may 
                consent to be assigned to Subtier 1 of the defendant 
                participant's applicable tier.
            (8) New information.--
                    (A) Existing participant.--The Administrator shall 
                adopt procedures for requiring additional payment, or 
                refunding amounts already paid, based on new 
                information received.
                    (B) Additional participant.--If the Administrator, 
                at any time, receives information that an additional 
                person may qualify as a defendant participant, the 
                Administrator shall require such person to submit 
                information necessary to determine whether that person 
                is required to make payments, and in what amount, under 
                this subtitle and shall make any determination or take 
                any other act consistent with this Act based on such 
                information or any other information available to the 
                Administrator with respect to such person.
            (9) 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.
            (10) Rehearing.--A defendant participant has a right to 
        obtain rehearing of the Administrator's determination under 
        this subsection of the applicable tier or subtier and of the 
        Administrator's determination under subsection (d) of a 
        financial hardship or inequity adjustment, if the request for 
        rehearing is filed within 30 days after the defendant 
        participant's receipt of notice from the Administrator of the 
        determination. A defendant participant may not file an action 
        under section 303 unless the defendant participant requests a 
        rehearing under this paragraph.
    (j) Defendant Hardship and Inequity Adjustment Account.--
            (1) In general.--To the extent the total payments by 
        defendant participants in any given year exceed the minimum 
        aggregate annual payments under subsection (h) of this section, 
        excess monies up to a maximum of $250,000,000 in any such year 
        shall be placed in a defendant hardship and inequity adjustment 
        account established within the Fund by the Administrator.
            (2) Use of account monies.--Monies from the defendant 
        hardship and inequity adjustment account shall be preserved and 
        administered like the remainder of the Fund, but shall be 
        reserved and may be used only--
                    (A) to make up for any relief granted to a 
                defendant participant for severe financial hardship or 
                demonstrated inequity under subsection (d) of this 
                section or to reimburse any defendant participant 
                granted such relief after its payment of the amount 
                otherwise due; and
                    (B) if the condition set forth in subsection (a)(2) 
                of this section is met, for any purpose that the Fund 
                may serve under this Act, unless the Administrator 
                shall have published a final certification requiring a 
contingent call under subsection (m)(3)(D).
            (3) Carryover of unused funds.--To the extent the 
        Administrator does not, in any given year, use all of the funds 
        allocated to the account under paragraph (1) for adjustments 
        granted under subsection (d), remaining funds in the account 
        shall be carried forward for use by the Administrator for 
        adjustments in subsequent years.
    (k) Defendant Guaranteed Payment Account.--
            (1) In general.--Subject to subsections (h) and (j), in the 
        event there are excess monies paid by defendant participants in 
        any given year, such monies--
                    (A) may be used to provide additional adjustments 
                under subsection (d), up to a maximum aggregate of 
                $50,000,000 in such year; and
                    (B) to the extent not used under subparagraph (A), 
                shall be placed in a defendant guaranteed payment 
                account established within the Fund by the 
                Administrator.
            (2) Use of account monies.--Monies from the defendant 
        guaranteed payment account shall be preserved and administered 
        like the remainder of the Fund, but shall be reserved and may 
        be used only--
                    (A) to ensure the minimum aggregate annual payment 
                set forth in subsection (h) net of any adjustments 
                under subsection (d) is reached each year; and
                    (B) if the condition set forth in subsection (a)(2) 
                of this section is met, for any purpose that the Fund 
                may serve under this Act, unless the Administrator 
                shall have published a final certification requiring a 
                contingent call under subsection (m)(3)(D).
    (l) Guaranteed Payment Surcharge.--
            (1) In general.--To the extent there are insufficient 
        monies in the defendant guaranteed payment account established 
        in subsection (k) to attain the minimum aggregate annual 
        payment net of any adjustments under subsection (d) in any 
        given year, the Administrator may impose on each defendant 
        participant a surcharge as necessary to raise the balance 
        required to attain the minimum aggregate annual payment net of 
        any adjustments under subsection (d), as provided in this 
        subsection. Any such surcharge shall be imposed on a pro rata 
        basis, in accordance with each defendant participant's relative 
        annual liability under sections 202 and 203 (as modified by 
        subsections (b), (d), (f), and (g) of this section).
            (2) Certification.--
                    (A) In general.--Before imposing a guaranteed 
                payment surcharge under this subsection, the 
                Administrator shall certify that he or she has used all 
                reasonable efforts to collect mandatory payments for 
                all defendant participants, including by using the 
                authority in subsection (i)(9) of this section and 
                section 223.
                    (B) Notice and comment.--Before making a final 
                certification under subparagraph (C), the Administrator 
                shall publish a notice in the Federal Register of a 
                proposed certification and provide in such notice for a 
                public comment period of 30 days.
                    (C) Final certification.--
                            (i) In general.--The Administrator shall 
                        publish a notice of the final certification in 
                        the Federal Register after consideration of all 
                        comments submitted under subparagraph (B).
                            (ii) Written notice.--Not later than 30 
                        days after publishing any final certification 
                        under clause (i), the Administrator shall 
                        provide each defendant participant with written 
                        notice of that defendant participant's payment, 
                        including the amount of any surcharge.
    (m) Contingent Call for Mandatory Additional Payments.--
            (1) In general.--Notwithstanding section 202(a)(2) and 
        subsection (a) of this section, the Administrator may require 
        additional payments to the Fund by defendant participants, 
        subsequent to the payment by defendant participants of the 
        maximum aggregate payment obligation in section 202(a)(2), as 
        provided in this subsection.
            (2) Contingent call payments.--If the Administrator has 
        certified or certifies the necessity of additional payments as 
        provided in paragraph (3), the Administrator may require the 
        defendant participants to pay in accordance with paragraph (5) 
        up to an aggregate maximum of $10,000,000,000 of additional 
        payments subsequent to the payment by defendant participants of 
        the maximum aggregate payment obligation in section 202(a)(2).
            (3) Contingent call certification.--
                    (A) In general.--Before invoking the authority to 
                require additional mandatory payments under this 
                subsection, the Administrator shall certify, after 
                consultation with appropriate experts, that the 
                entirety of the contingent call amount invoked is 
                necessary to meet the Fund's obligations.
                    (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 defendant participants.--Not 
                later than 60 days after the publication of the notice 
                under subparagraph (B), a defendant participant may 
                provide the Administrator with additional information 
                to support a determination that all or some of the 
                additional payments from defendant participants set 
                forth in the notice are or are not required.
                    (D) Final certification.--
                            (i) In general.--The Administrator shall 
                        publish a final notice in the Federal Register 
                        after consideration of all comments submitted 
                        under subparagraph (C).
                            (ii) Written notice.--If the Administrator 
                        certifies the need for the contingent call for 
                        additional payments, the Administrator shall 
                        provide each defendant participant with written 
                        notice of that defendant participant's schedule 
                        of payments under this subsection.
            (4) Borrowing capacity.--To the extent provided in section 
        221(b)(3), the Administrator may borrow against the mandatory 
        additional payments required under this subsection at any time 
        after issuing the final certification under paragraph (3).
            (5) Allocation.--Any additional payments to the Fund by 
        defendant participants under this subsection shall be allocated 
        among them in proportion to the amounts provided under sections 
        202 and 203 (as modified by subsections (b), (d), (f), and (g) 
        of this section). If the Administrator determines that the full 
        amount of funding that would otherwise be generated in any year 
        by the funding provisions of sections 202, 203, and 204 is not 
        required for purposes of this subsection, the Administrator 
        shall reduce the amounts paid by all defendant participants on 
        the same basis.
            (6) Enforcement.--The additional payments required under 
        this subsection may be enforced in the same manner and to the 
        same extent as the enforcement of payments under section 223.

                Subtitle B--Asbestos Insurers Commission

SEC. 210. DEFINITION.

    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, by and with 
        the advice and consent of the Senate.
            (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.--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) Period of appointment.--Members shall be appointed for 
        the life of the Commission.
            (4) Vacancies.--Any vacancy in the Commission shall be 
        filled in the same manner as the original appointment.
            (5) Chairman.--The President 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 a majority of the members of the 
        Commission.

SEC. 212. DUTIES OF ASBESTOS INSURERS COMMISSION.

    (a) Determination of Insurer Payment Obligations.--
            (1) In general.--
                    (A) Definitions.--For the purposes of this Act, the 
                terms ``insurer'' and ``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) Procedures for determining insurer payments.--
                The Commission shall determine the amount that each 
                insurer participant shall be required to pay into the 
                Fund under the procedures described in this section. 
                The Commission shall make this determination by first 
                promulgating a rule establishing a methodology for 
                allocation of payments among insurer participants and 
                then applying such methodology to determine the 
                individual payment for each insurer participant. The 
                methodology may include 1 or more allocation formulas 
                to be applied to all insurer participants or groups of 
                similarly situated participants. The Commission's rule 
                shall include a methodology for adjusting payments by 
                insurer participants to make up, during any applicable 
                payment year, any amount by which aggregate insurer 
                payments fall below the level required in paragraph 
                (3)(C). Under this procedure, not later than 120 days 
                after the initial meeting of the Commission, the 
                Commission shall commence a rulemaking proceeding under 
                section 213(a) to propose and adopt a methodology for 
                allocating payments among insurer participants. In 
                proposing an allocation methodology, the Commission may 
                consult with such actuaries and other experts as it 
                deems appropriate. After hearings and public comment on 
                the proposed allocation methodology, the Commission 
                shall as promptly as possible promulgate a final rule 
                establishing such methodology. After promulgation of 
                the final rule, the Commission shall determine the 
                individual payment of each insurer participant under 
                the procedures set forth in subsection (b).
                    (C) Scope.--Every insurer, reinsurer, and runoff 
                entity with asbestos-related obligations in the United 
                States shall be subject to the Commission's and 
                Administrator's authority under this Act, including 
                allocation determinations, and shall be required to 
                fulfill its payment obligation without regard as to 
                whether it is licensed in the United States. Every 
                insurer participant not licensed or domiciled in the 
                United States shall, upon the first payment to the 
                Fund, submit a written consent to the Commission's and 
                Administrator's authority under this Act, and to the 
                jurisdiction of the courts of the United States for 
                purposes of enforcing this Act, in a form determined by 
                the Administrator. Any insurer participant refusing to 
                provide a written consent shall be subject to fines and 
                penalties as provided in section 223.
            (2) Amount of payments.--
                    (A) Aggregate payment obligation.--The total 
                payment required of all insurer participants over the 
                life of the Fund shall be equal to $46,025,000,000.
                    (B) Accounting standards.--In determining the 
                payment obligations of participants that are not 
                licensed or domiciled in the United States or that are 
                runoff entities, the Commission shall use accounting 
                standards required for United States licensed direct 
                insurers.
                    (C) Captive insurance companies.--No payment to the 
                Fund shall be required 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.
                    (D) Several liability.--Unless otherwise provided 
                under this Act, each insurer participant's obligation 
                to make payments to the Fund is several. Unless 
                otherwise provided under this Act, there is no joint 
                liability and the future insolvency by any insurer 
                participant shall not affect the payment required of 
                any other insurer participant.
            (3) Payment criteria.--
                    (A) Inclusion in insurer participant category.--
                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 insurer participants in the Fund. Other insurers 
shall be exempt from mandatory payments.
                    (B) Insurer participant allocation methodology.--
                            (i) In general.--The Commission shall 
                        establish the payment obligations of individual 
                        insurer participants to reflect, on an 
                        equitable basis, the relative tort system 
                        liability of the participating insurers in the 
                        absence of this Act, 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 liability;
                                    (III) amounts reserved for asbestos 
                                liability;
                                    (IV) the likely cost 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.--The 
                        Commission may establish procedures and 
                        standards for determination of the asbestos 
                        reserves of insurer participants. The reserves 
                        of a United States licensed reinsurer that is 
                        wholly owned by, or under common control of, 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 33 of its filings with the National 
                        Association of Insurance Commissioners or in 
                        published financial statements prepared in 
                        accordance with generally accepted accounting 
                        principles.
                    (C) Payment schedule.--The aggregate annual amount 
                of payments by insurer participants over the life of 
                the Fund shall be as follows:
                            (i) For year 1, $2,700,000,000.
                            (ii) For year 2, $7,500,000,000.
                            (iii) For year 3, $2,175,000,000.
                            (iv) For years 4 through 17, $1,625,000,000 
                        annually.
                            (v) For years 18 through 21, $1,350,000,000 
                        annually.
                            (vi) For years 22 through 26, 
                        $1,080,000,000 annually.
                            (vii) For year 27, $100,000,000.
                    (D) Certain runoff entities.--
                            (i) In general.--Whenever the Commission 
                        requires payments by a runoff entity that has 
                        assumed asbestos-related liabilities from a 
                        Lloyds syndicate or names that are members of 
                        such a syndicate, the Commission shall not 
                        require payments from such syndicates and names 
                        to the extent that the runoff entity makes its 
                        required payments. In addition, such syndicates 
                        and names shall be required to make payments to 
                        the Fund in the amount of any adjustment 
                        granted to the runoff entity for severe 
                        financial hardship or exceptional 
                        circumstances.
                            (ii) Included runoff entities.--Subject to 
                        clause (i), a runoff entity shall include any 
                        direct insurer or reinsurer whose asbestos 
                        liability reserves have been transferred, 
                        directly or indirectly, to the runoff entity 
                        and on whose behalf the runoff entity handles 
                        or adjusts and, where appropriate, pays 
                        asbestos claims.
                    (E) Financial hardship and exceptional circumstance 
                adjustments.--
                            (i) In general.--Under the procedures 
                        established in subsection (b), an insurer 
                        participant may seek adjustment of the amount 
                        of its payments based on exceptional 
                        circumstances or severe financial hardship.
                            (ii) Financial adjustments.--An insurer 
                        participant may qualify for an adjustment based 
                        on severe financial hardship by demonstrating 
                        that payment of the amounts required by the 
                        Commission's methodology would jeopardize the 
                        solvency of such participant.
                            (iii) Exceptional circumstance 
                        adjustment.--An insurer participant may qualify 
                        for an adjustment based on exceptional 
                        circumstances by demonstrating--
                                    (I) that the amount of its payments 
                                under the Commission's allocation 
                                methodology is exceptionally 
                                inequitable when measured against the 
                                amount of the likely cost to the 
                                participant of its future liability in 
                                the tort system in the absence of the 
                                Fund;
                                    (II) an offset credit as described 
                                in subsection (b)(4) (A) and (C); or
                                    (III) other exceptional 
                                circumstances.
                        The Commission may determine whether to grant 
                        an adjustment and the size of any such 
                        adjustment, but adjustments shall not reduce 
                        the aggregate payment obligations of insurer 
                        participants specified in paragraph (2)(A) and 
                        (3)(C).
                            (iv) Time period of adjustment.--Except for 
                        adjustments for offset credits, adjustments 
                        granted under this subsection shall have a term 
                        not to exceed 3 years. An insurer participant 
                        may renew its adjustment by demonstrating to 
                        the Administrator that it remains justified.
    (b) Procedure for Notifying Insurer Participants of Individual 
Payment Obligations.--
            (1) Notice to participants.--Not later than 30 days after 
        promulgation of the final rule establishing an allocation 
        methodology under subsection (a)(1), 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 payment to the Fund under the allocation 
                methodology; 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 by individual insurer participants.--
                    (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 under a schedule or by a date 
established by the Commission.
                    (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 to insurer participants of initial payment 
        determination.--
                    (A) In general.--Within 120 days after receipt of 
                the information required by paragraph (2), the 
                Commission shall send each insurer participant a notice 
                of initial determination requiring payments to the 
                Fund, which shall be based on the information received 
                from the participant in response to the Commission's 
                request for information. An insurer participant's 
                payments shall be payable over the schedule established 
                in subsection (a)(3)(C), in annual amounts 
                proportionate to the aggregate annual amount of 
                payments for all insurer participants for the 
                applicable year.
                    (B) No response; incomplete response.--If no 
                response is received from an insurer participant, or if 
                the response is incomplete, the initial determination 
                requiring a payment from the insurer participant shall 
                be based on the best information available to the 
                Commission.
            (4) Commission review, revision and finalization of initial 
        payment determinations.--
                    (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 
                required payments to reflect severe financial hardship 
                or 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 payments from that person should be 
                required, in accordance with the requirements of this 
                subsection.
                    (C) Revision procedures.--The Commission shall 
                adopt procedures for revising initial payments 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.
            (5) Examinations and subpoenas.--
                    (A) Examinations.--The Commission may conduct 
                examinations of the books and records of insurer 
                participants to determine the completeness and accuracy 
                of information submitted, or required to be submitted, 
                to the Commission for purposes of determining 
                participant payments.
                    (B) 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 payment obligation under this section, any escrow 
        or similar account established before the enactment of this Act 
        by an insurer participant in connection with an asbestos trust 
        fund that has not been judicially confirmed by final order by 
        the date of enactment of this Act shall be the property of the 
        insurer participant and returned to that insurer participant.
            (7) Notice to insurer participants of final payment 
        determinations.--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.
    (c) Insurer Participants Voluntary Allocation Agreement.--
            (1) In general.--Not later than 30 days after the 
        Commission proposes its rule establishing an allocation 
        methodology under subsection (a)(1), direct insurer 
        participants licensed or domiciled in the United States, other 
        direct insurer participants, reinsurer participants licensed or 
        domiciled in the United States, or other reinsurer 
        participants, may submit an allocation agreement, approved by 
        all of the participants in the applicable group, to--
                    (A) the Commission;
                    (B) the Committee on the Judiciary of the Senate; 
                and
                    (C) the Committee on the Judiciary of the House of 
                Representatives.
            (2) Allocation agreement.--To the extent the participants 
        in any such applicable group voluntarily agree upon an 
        allocation arrangement, any such allocation agreement shall 
        only govern the allocation of payments within that group and 
        shall not determine the aggregate amount due from that group.
            (3) Certification.--The Commission shall determine whether 
        an allocation agreement submitted under subparagraph (A) meets 
        the requirements of this subtitle and, if so, shall certify the 
        agreement as establishing the allocation methodology governing 
        the individual payment obligations of the participants who are 
        parties to the agreement. The authority of the Commission under 
        this subtitle shall, with respect to participants who are 
        parties to a certified allocation agreement, terminate on the 
        day after the Commission certifies such agreement. Under 
        subsection (f), the Administrator shall assume responsibility, 
        if necessary, for calculating the individual payment 
        obligations of participants who are parties to the certified 
        agreement.
    (d) Commission Report.--
            (1) Recipients.--Until the work of the Commission has been 
        completed and the Commission terminated, the Commission shall 
        submit an annual 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 Administrator.
            (2) Contents.--The report under paragraph (1) shall state 
        the amount that each insurer participant is required to pay to 
        the Fund, including the payment schedule for such payments.
    (e) Interim Payments.--
            (1) Authority of administrator.--During the period between 
        the date of enactment of this Act and the date when the 
        Commission issues its final determinations of payments, the 
        Administrator shall have the authority to require insurer 
        participants to make interim payments to the Fund to assure 
        adequate funding by insurer participants during such period.
            (2) Amount of interim payments.--During any applicable 
        year, the Administrator may require insurer participants to 
        make aggregate interim payments not to exceed the annual 
        aggregate amount specified in subsection (a)(3)(C).
            (3) Allocation of payments.--Interim payments shall be 
        allocated among individual insurer participants on an equitable 
        basis as determined by the Administrator. All payments required 
        under this subparagraph shall be credited against the 
        participant's ultimate payment obligation to the Fund 
        established by the Commission. If an interim payment exceeds 
        the ultimate payment, the Fund shall pay interest on the amount 
        of the overpayment at a rate determined by the Administrator. 
        If the ultimate payment exceeds the interim payment, the 
        participant shall pay interest on the amount of the 
        underpayment at the same rate. Any participant may seek an 
        exemption from or reduction in any payment required under this 
        subsection under the financial hardship and exceptional 
        circumstance standards established in subsection (a)(3)(D).
            (4) Appeal of interim payment decisions.--A decision by the 
        Administrator to establish an interim payment obligation shall 
        be considered final agency action and reviewable under section 
        303, except that the reviewing court may not stay an interim 
        payment during the pendency of the appeal.
    (f) Transfer of Authority From the Commission to the 
Administrator.--
            (1) In general.--Upon termination of the Commission under 
        section 215, the Administrator shall assume all the 
        responsibilities and authority of the Commission, except that 
        the Administrator shall not have the power to modify the 
        allocation methodology established by the Commission or by 
        certified agreement or to promulgate a rule establishing any 
        such methodology.
            (2) Financial hardship and exceptional circumstance 
        adjustments.--Upon termination of the Commission under section 
        215, the Administrator shall have the authority, upon 
        application by any insurer participant, to make adjustments to 
        annual payments upon the same grounds as provided in subsection 
        (a)(3)(D). Adjustments granted under this subsection shall have 
        a term not to exceed 3 years. An insurer participant may renew 
        its adjustment by demonstrating that it remains justified. Upon 
        the grant of any adjustment, the Administrator shall increase 
        the payments required of all other insurer participants so that 
        there is no reduction in the aggregate payment required of all 
        insurer participants for the applicable years. The increase in 
        an insurer participant's required payment shall be in 
        proportion to such participant's share of the aggregate payment 
        obligation of all insurer participants.
            (3) Financial security requirements.--Whenever an insurer 
        participant's A.M. Best's claims payment rating or Standard and 
        Poor's financial strength rating falls below A-, and until such 
        time as either the insurer participant's A.M. Best's Rating or 
        Standard and Poor's rating is equal to or greater than A-, the 
        Administrator shall have the authority to require that the 
        participating insurer either--
                    (A) pay the present value of its remaining Fund 
                payments at a discount rate determined by the 
                Administrator; or
                    (B) provide an evergreen letter of credit or 
                financial guarantee for future payments issued by an 
                institution with an A.M. Best's claims payment rating 
                or Standard & Poor's financial strength rating of at 
                least A+.
    (g) Judicial Review.--The Commission's rule establishing an 
allocation methodology, its final determinations of payment obligations 
and other final action shall be judicially reviewable as provided in 
title III.

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 methodology. Such rules 
and regulations shall be promulgated after providing interested parties 
with the opportunity for notice and comment.
    (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. 
The Commission shall also hold a hearing on any proposed regulation 
establishing an allocation methodology, before the Commission's 
adoption of a final regulation.
    (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.

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. TERMINATION OF ASBESTOS INSURERS COMMISSION.

    The Commission shall terminate 90 days after the last date on which 
the Commission makes a final determination of contribution under 
section 212(b) or 90 days after the last appeal of any final action by 
the Commission is exhausted, whichever occurs later.

SEC. 216. EXPENSES AND COSTS OF COMMISSION.

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

           Subtitle C--Asbestos Injury Claims Resolution Fund

SEC. 221. ESTABLISHMENT OF ASBESTOS INJURY CLAIMS RESOLUTION FUND.

    (a) Establishment.--There is established in the Office of Asbestos 
Disease Compensation 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 
        (b); and
            (4) administrative expenses to carry out the provisions of 
        this Act.
    (b) Borrowing Authority.--
            (1) In general.--The Administrator is authorized to borrow 
        from time-to-time amounts as set forth in this subsection, for 
        purposes of enhancing liquidity available to the Fund for 
        carrying out the obligations of the Fund under this Act. The 
        Administrator may authorize borrowing in such form, over such 
        term, with such necessary disclosure to its lenders as will 
        most efficiently enhance the Fund's liquidity.
            (2) Federal financing bank.--In addition to the general 
        authority in paragraph (1), the Administrator may borrow from 
        the Federal Financing Bank in accordance with section 6 of the 
        Federal Financing Bank Act of 1973 (12 U.S.C. 2285) as needed 
        for performance of the Administrator's duties under this Act 
        for the first 2 years.
            (3) Borrowing capacity.--The maximum amount that may be 
        borrowed under this subsection at any given time is the amount 
        that, taking into account all payment obligations related to 
        all previous amounts borrowed in accordance with this 
        subsection and all committed obligations of the Fund at the 
        time of borrowing, can be repaid in full (with interest) in a 
        timely fashion from--
                    (A) the available assets of the Fund as of the time 
                of borrowing; and
                    (B) all amounts expected to be paid by participants 
                (including any contingent call mandatory additional 
                payments under section 204(m)) during the subsequent 7 
                years.
            (4) Repayment obligations.--Repayment of monies borrowed by 
        the Administrator under this subsection is limited solely to 
        amounts available in the Asbestos Injury Claims Resolution Fund 
        established under this section.
    (c) 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 
        payments made 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.
    (d) Audit Authority.--
            (1) In general.--For the purpose of ascertaining the 
        correctness of any information provided or payments made to the 
        Fund, or determining whether a person who has not made a 
        payment to the Fund was required to do so, or determining the 
        liability of any person for a payment to the Fund, or 
        collecting any such liability, or inquiring into any offense 
        connected with the administration or enforcement of this title, 
        the Administrator is authorized--
                    (A) to examine any books, papers, records or other 
                data which may be relevant or material to such inquiry;
                    (B) to summon the person liable for a payment under 
                this title, or officer or employee of such person, or 
                any person having possession, custody, or care of books 
                of account containing entries relating to the business 
                of the person liable or any other person the 
                Administrator may deem proper, to appear before the 
                Administrator at a time and place named in the summons 
                and to produce such books, papers, records, or other 
                data, and to give such testimony, under oath, as may be 
                relevant or material to such inquiry; and
                    (C) to take such testimony of the person concerned, 
                under oath, as may be relevant or material to such 
                inquiry.
            (2) False, fraudulent, or fictitious statements or 
        practices.--If the Administrator determines that materially 
        false, fraudulent, or fictitious statements or practices have 
        been submitted or engaged in by persons submitting information 
        to the Administrator or to the Asbestos Insurers Commission or 
        any other person who provides evidence in support of such 
        submissions for purposes of determining payment obligations 
        under this Act, the Administrator may impose a civil penalty 
        not to exceed $10,000 on any person found to have submitted or 
        engaged in a materially false, fraudulent, or fictitious 
        statement or practice under this Act. The Administrator shall 
        promulgate appropriate regulations to implement this paragraph.
    (e) No Private Right of Action.--Except as provided in sections 
203(b)(2)(D)(ii) and 204(f)(3), there shall be no private right of 
action under any Federal or State law against any participant based on 
a claim of compliance or noncompliance with this Act or the involvement 
of any participant in the enactment of this Act.

SEC. 222. MANAGEMENT OF THE FUND.

    (a) In General.--Amounts in the Fund shall be held for the 
exclusive purpose of providing benefits to asbestos claimants and their 
beneficiaries, including those provided in subsection (c), and to 
otherwise defray the reasonable expenses of administering the Fund.
    (b) Investments.--
            (1) 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.
            (2) 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--
                    (A) the size of the Fund;
                    (B) the nature and estimated duration of the Fund;
                    (C) the liquidity and distribution requirements of 
                the Fund;
                    (D) general economic conditions at the time of the 
                investment;
                    (E) the possible effect of inflation or deflation 
                on Fund assets;
                    (F) the role that each investment or course of 
                action plays with respect to the overall assets of the 
                Fund;
                    (G) the expected amount to be earned (including 
                both income and appreciation of capital) through 
                investment of amounts in the Fund; and
                    (H) the needs of asbestos claimants for current and 
                future distributions authorized under this Act.
    (c) Mesothelioma Research and Treatment Centers.--
            (1) In general.--The Administrator shall provide $1,000,000 
        from the Fund for each of fiscal years 2004 through 2008 for 
        each of up to 10 mesothelioma disease research and treatment 
        centers.
            (2) Requirements.--The Centers shall--
                    (A) be chosen by the Director of the National 
                Institutes of Health;
                    (B) be chosen through competitive peer review;
                    (C) be geographically distributed throughout the 
                United States with special consideration given to areas 
                of high incidence of mesothelioma disease;
                    (D) be closely associated with Department of 
                Veterans Affairs medical centers to provide research 
                benefits and care to veterans, who have suffered 
                excessively from mesothelioma;
                    (E) be engaged in research to provide mechanisms 
                for detection and prevention of mesothelioma, 
                particularly in the areas of pain management and cures;
                    (F) be engaged in public education about 
                mesothelioma and prevention, screening, and treatment;
                    (G) be participants in the National Mesothelioma 
                Registry; and
                    (H) be coordinated in their research and treatment 
                efforts with other Centers and institutions involved in 
                exemplary mesothelioma research.

SEC. 223. ENFORCEMENT OF PAYMENT OBLIGATIONS.

    (a) Default.--If any participant fails to make any payment in the 
amount of and according to the schedule under this Act or as prescribed 
by the Administrator, 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. The United States 
Bankruptcy Court shall have jurisdiction over any issue or controversy 
regarding lien priority and lien perfection arising in a bankruptcy 
case due to a lien imposed under subsection (a).
    (c) Civil Action.--
            (1) In general.--In any case in which there has been a 
        refusal or failure to pay any liability imposed under this Act, 
        the Administrator may bring a civil action in the United States 
        District Court for the District of Columbia, or any other 
        appropriate lawsuit or proceeding outside of the United 
        States--
                    (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) of punitive damages;
                    (B) of 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, of a fine 
                equal to the total amount of the liability that has not 
                been collected.
    (d) Enforcement Authority as to Insurer Participants.--
            (1) In general.--In addition to or in lieu of the 
        enforcement remedies described in subsection (c), the 
        Administrator may seek to recover amounts in satisfaction of a 
        payment not timely paid by an insurer participant under the 
        procedures under this subsection.
            (2) Subrogation.--To the extent required to establish 
        personal jurisdiction over nonpaying insurer participants, the 
        Administrator shall be deemed to be subrogated to the 
        contractual rights of participants to seek recovery from 
        nonpaying insuring participants that are domiciled outside the 
        United States under the policies of liability insurance or 
        contracts of liability reinsurance or retrocessional 
        reinsurance applicable to asbestos claims, and the 
        Administrator may bring an action or an arbitration against the 
        nonpaying insurer participants under the provisions of such 
        policies and contracts, provided that--
                    (A) any amounts collected under this subsection 
                shall not increase the amount of deemed erosion 
                allocated to any policy or contract under section 404, 
                or otherwise reduce coverage available to a 
                participant; and
                    (B) subrogation under this subsection shall have no 
                effect on the validity of the insurance policies or 
                reinsurance, and any contrary State law is expressly 
                preempted.
            (3) Recoverability of contribution.--For purposes of this 
        subsection--
                    (A) all contributions to the Fund required of a 
                participant shall be deemed to be sums legally required 
                to be paid for bodily injury resulting from exposure to 
                asbestos;
                    (B) all contributions to the Fund required of any 
                participant shall be deemed to be a single loss arising 
                from a single occurrence under each contract to which 
                the Administrator is subrogated; and
                    (C) with respect to reinsurance contracts, all 
                contributions to the Fund required of a participant 
                shall be deemed to be payments to a single claimant for 
                a single loss.
            (4) No credit or offset.--In any action brought under this 
        subsection, the nonpaying insurer or reinsurer shall be 
        entitled to no credit or offset for amounts collectible or 
        potentially collectible from any participant nor shall such 
        defaulting participant have any right to collect any sums 
        payable under this section from any participant.
            (5) Cooperation.--Insureds and cedents shall cooperate with 
        the Administrator's reasonable requests for assistance in any 
        such proceeding. The positions taken or statements made by the 
        Administrator in any such proceeding shall not be binding on or 
        attributed to the insureds or cedents in any other proceeding. 
        The outcome of such a proceeding shall not have a preclusive 
        effect on the insureds or cedents in any other proceeding and 
        shall not be admissible against any subrogee under this 
        section. The Administrator shall have the authority to 
settle or compromise any claims against a nonpaying insurer participant 
under this subsection.
    (e) Bar on United States Business.--If any direct insurer or 
reinsurer refuses to furnish any information requested by or to pay any 
contribution required by this Act, then, in addition to any other 
penalties imposed by this Act, the Administrator may issue an order 
barring such entity and its affiliates from insuring risks located 
within the United States or otherwise doing business within the United 
States. Insurer participants or their affiliates seeking to obtain a 
license from any State to write any type of insurance shall be barred 
from obtaining any such license until payment of all contributions 
required as of the date of license application.
    (f) Credit for Reinsurance.--If the Administrator determines that 
an insurer participant that is a reinsurer is in default in paying any 
required contribution or otherwise not in compliance with this Act, the 
Administrator may issue an order barring any direct insurer participant 
from receiving credit for reinsurance purchased from the defaulting 
reinsurer. Any State law governing credit for reinsurance to the 
contrary is preempted.
    (g) Defense Limitation.--In any proceeding under this section, the 
participant shall be barred from bringing any challenge to any 
determination of the Administrator or the Asbestos Insurers Commission 
regarding its liability under this Act, or to the constitutionality of 
this Act or any provision thereof, if such challenge could have been 
made during the review provided under section 204(i)(10), or in a 
judicial review proceeding under section 303.
    (h) Deposit of Funds.--
            (1) In general.--Any funds collected under subsection 
        (c)(2) (A) or (C) shall be--
                    (A) deposited in the Fund; and
                    (B) 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.
            (2) No effect on other liabilities.--The imposition of a 
        fine under subsection (c)(2)(C) shall have no effect on--
                    (A) the assessment of contributions under subtitles 
                A and B; or
                    (B) any other provision of this Act.
    (i) Property of the Estate.--Section 541(b) of title 11, United 
States Code, is amended--
            (1) in paragraph (4)(B)(ii), by striking ``or'' at the end;
            (2) in paragraph (5), by striking ``prohibition.'' and 
        inserting ``prohibition; or''; and
            (3) by inserting after paragraph (5) and before the last 
        undesignated sentence the following:
            ``(6) the value of any pending claim against or the amount 
        of an award granted from the Asbestos Injury Claims Resolution 
        Fund established under the Fairness in Asbestos Injury 
        Resolution Act of 2004.''.

SEC. 224. INTEREST ON UNDERPAYMENT OR NONPAYMENT.

    If any amount of payment obligation under this title is not paid on 
or before the last date prescribed for payment, the liable party shall 
pay interest on such amount at the Federal short-term rate determined 
under section 6621(b) of the Internal Revenue Code of 1986, plus 5 
percentage points, for the period from such last date to the date paid.

                       TITLE III--JUDICIAL REVIEW

SEC. 301. JUDICIAL REVIEW OF RULES AND REGULATIONS.

    (a) Exclusive Jurisdiction.--The United States Court of Appeals for 
the District of Columbia Circuit shall have exclusive jurisdiction over 
any action to review rules or regulations promulgated by the 
Administrator or the Asbestos Insurers Commission under this Act.
    (b) Period for Filing Petition.--A petition for review under this 
section shall be filed not later than 60 days after the date notice of 
such promulgation appears in the Federal Register.

SEC. 302. JUDICIAL REVIEW OF AWARD DECISIONS.

    (a) In General.--Any claimant adversely affected or aggrieved by a 
final decision of the Administrator awarding or denying compensation 
under title I may petition for judicial review of such decision. Any 
petition for review under this section shall be filed within 90 days of 
the issuance of a final decision of the Administrator.
    (b) Exclusive Jurisdiction.--A petition for review may only be 
filed in the United States Court of Appeals for the circuit in which 
the claimant resides at the time of the issuance of the final order.
    (c) Standard of Review.--The court shall uphold the decision of the 
Administrator unless the court determines, upon review of the record as 
a whole, that the decision is not supported by substantial evidence, is 
contrary to law, or is not in accordance with procedure required by 
law.

SEC. 303. JUDICIAL REVIEW OF PARTICIPANTS' ASSESSMENTS.

    (a) Exclusive Jurisdiction.--The United States Court of Appeals for 
the District of Columbia Circuit shall have exclusive jurisdiction over 
any action to review a final determination by the Administrator or the 
Asbestos Insurers Commission regarding the liability of any person to 
make a payment to the Fund, including a notice of applicable subtier 
assignment under section 204(i), a notice of financial hardship or 
inequity determination under section 204(d), and a notice of insurer 
participant obligation under section 212(b).
    (b) Period for Filing Action.--A petition for review under 
subsection (a) shall be filed not later than 60 days after a final 
determination by the Administrator or the Commission giving rise to the 
action. Any defendant participant who receives a notice of its 
applicable subtier under section 204(i) or a notice of financial 
hardship or inequity determination under section 204(d) shall commence 
any action within 30 days after a decision on rehearing under section 
204(i)(10), and any insurer participant who receives a notice of a 
payment obligation under section 212(b) shall commence any action 
within 30 days after receiving such notice.

SEC. 304. OTHER JUDICIAL CHALLENGES.

    (a) Exclusive Jurisdiction.--The United States District Court for 
the District of Columbia shall have exclusive jurisdiction over any 
action for declaratory or injunctive relieve challenging any provision 
of this Act. An action under this section shall be filed not later than 
60 days after the date of enactment of this Act or 60 days after the 
final action by the Administrator or the Commission giving rise to the 
action, whichever is later.
    (b) Direct Appeal.--A final decision in the action shall be 
reviewable on appeal directly to the Supreme Court of the United 
States. Such appeal shall be taken by the filing of a notice of appeal 
within 30 days, and the filing of a jurisdictional statement within 60 
days, of the entry of the final decision.
    (c) Expedited Procedures.--It shall be the duty of the United 
States District Court for the District of Columbia and the Supreme 
Court of the United States to advance on the docket and to expedite to 
the greatest possible extent the disposition of the action and appeal.

SEC. 305. STAYS, EXCLUSIVITY, AND CONSTITUTIONAL REVIEW.

    (a) No Stays.--No court may issue a stay of payment by any party 
into the Fund pending its final judgment.
    (b) Exclusivity of Review.--An action of the Administrator or the 
Asbestos Insurers Commission for which review could have been obtained 
under section 301, 302, or 303 shall not be subject to judicial review 
in any other proceeding.
    (c) 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.

                   TITLE IV--MISCELLANEOUS PROVISIONS

SEC. 401. FALSE INFORMATION.

    (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 Office of Asbestos Disease 
Compensation or the Asbestos Insurers Commission under title II of the 
Fairness in Asbestos Injury Resolution Act of 2004 shall be fined under 
this title or imprisoned not more than 20 years, or both.
    ``(b) False Statement Relating to Asbestos Injury Claims Resolution 
Fund.--Whoever, in any matter involving the Office of Asbestos Disease 
Compensation or the Asbestos Insurers Commission, 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 determination of a participant's payment 
        obligation under title I or II of the Fairness in Asbestos 
        Injury Resolution Act of 2004 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 2004, 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 Contract.--Section 365 of title 11, 
United States Code, is amended by adding at the end the following:
    ``(p) If a debtor is a participant (as that term is defined in 
section 3 of the Fairness in Asbestos Injury Resolution Act of 2004), 
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 2004) 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 title II of the Fairness 
in Asbestos Injury Resolution Act of 2004.''.
    (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 2004) of the debtor's payment obligations assessed against the 
participant under 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 2004); 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 
                        2004; 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 2004 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 2004 shall--
                    ``(A) constitute costs and expenses of 
                administration of a case under section 503 of this 
                title;
                    ``(B) notwithstanding any case pending under this 
                title, be payable in accordance with section 202 of 
                that Act;
                    ``(C) not be stayed;
                    ``(D) not be affected as to enforcement or 
                collection by any stay or injunction of any court; and
                    ``(E) not be impaired or discharged in any current 
                or future case under this title.''.
    (f) Treatment of Trusts.--Section 524 of title 11, United States 
Code, as amended by this Act, is amended by adding at the end the 
following:
    ``(j) Asbestos Trusts.--
            ``(1) In general.--A trust shall assign a portion of the 
        corpus of the trust to the Asbestos Injury Claims Resolution 
        Fund (referred to in this subsection as the `Fund') as 
        established under the Fairness in Asbestos Injury Resolution 
        Act of 2004 if the trust qualifies as a `trust' under section 
        201 of that Act.
            ``(2) Transfer of trust assets.--
                    ``(A) In general.--
                            ``(i) Except as provided under 
                        subparagraphs (B), (C), and (E), 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 2004) 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 2004 or 30 days following funding of a 
                        trust established under a reorganization plan 
                        subject to section 202(c) of that Act. 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 221 of such Act, including 
                        the payment of claims for awards under such Act 
                        to beneficiaries of the trust from which the 
                        assets were transferred.
                            ``(ii) Notwithstanding any other provision 
                        of Federal or State law, no liability of any 
                        kind may be imposed on a trustee of a trust for 
                        transferring assets to the Fund in accordance 
                        with clause (i).
                    ``(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. The trustees shall demonstrate to the 
                satisfaction of the Administrator, or by clear and 
                convincing evidence in a proceeding brought before the 
                United States District Court for the District of 
                Columbia in accordance with paragraph (4), that the 
                amount reserved is properly allocable to claims other 
                than asbestos claims.
                    ``(D) Sale of fund assets.--The investment 
                requirements under section 222 of the Fairness in 
                Asbestos Injury Resolution Act of 2004 shall not be 
                construed to require the Administrator of the Fund to 
                sell assets transferred to the Fund under subparagraph 
                (A).
                    ``(E) Liquidated claims.--Except as specifically 
                provided in this subparagraph, all asbestos claims 
                against a trust are superseded and preempted as of the 
                date of enactment of the Fairness in Asbestos Injury 
                Resolution Act of 2004, and a trust shall not make any 
                payment relating to asbestos claims after that date. 
                If, in the ordinary course and the normal and usual 
                administration of the trust consistent with past 
                practices, a trust had before the date of enactment of 
                the Fairness in Asbestos Injury Resolution Act of 2004, 
                made all determinations necessary to entitle an 
                individual claimant to a noncontingent cash payment 
                from the trust, the trust shall (i) make any lump-sum 
                cash payment due to that claimant, and (ii) make or 
                provide for all remaining noncontingent payments on any 
                award being paid or scheduled to be paid on an 
                installment basis, in each case only to the same extent 
                that the trust would have made such cash payments in 
                the ordinary course and consistent with past practices 
                before enactment of that Act. A trust shall not make 
                any payment in respect of any alleged contingent right 
                to recover any greater amount than the trust had 
                already paid, or had completed all determinations 
                necessary to pay, to a claimant in cash in accordance 
                with its ordinary distribution procedures in effect as 
                of June 1, 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. No court, Federal or State, may enjoin 
        the transfer of assets by a trust to the Fund in accordance 
        with this subsection pending resolution of any litigation 
        challenging such transfer or the validity of this subsection or 
        of any provision of the Fairness in Asbestos Injury Resolution 
        Act of 2004, and an interlocutory order denying such relief 
        shall not be subject to immediate appeal under section 1291(a) 
        of title 28. Notwithstanding any other provision of law, once 
        such a transfer has been made, the assets of the Fund shall be 
        available to satisfy any final judgment entered in such an 
action and no longer subject to any appeal or review, (i) declaring 
that the transfer effected a taking of a right or property for which an 
individual is constitutionally entitled to just compensation, or (ii) 
requiring the transfer back to a trust of any or all assets transferred 
by that trust to the Fund.
            ``(4) Jurisdiction.--Solely for purposes of implementing 
        this subsection, personal jurisdiction over every covered 
        trust, the trustees thereof, and any other necessary party, and 
        exclusive subject matter jurisdiction over every question 
        arising out of or related to this subsection, shall be vested 
        in the United States District Court for the District of 
        Columbia. Notwithstanding any other provision of law, including 
        section 1127 of this title, that court may make any order 
        necessary and appropriate to facilitate prompt compliance with 
        this subsection, including assuming jurisdiction over and 
        modifying, to the extent necessary, any applicable confirmation 
        order or other order with continuing and prospective 
        application to a covered trust. The court may also resolve any 
        related challenge to the constitutionality of this subsection 
        or of its application to any trust, trustee, or individual 
        claimant. The Administrator of the Fund may bring an action 
        seeking such an order or modification, under the standards of 
        rule 60(b) of the Federal Rules of Civil Procedure or 
        otherwise, and shall be entitled to intervene as of right in 
        any action brought by any other party seeking interpretation, 
        application, or invalidation of this subsection. Any order 
        denying relief that would facilitate prompt compliance with the 
        transfer provisions of this subsection shall be subject to 
        immediate appeal under section 1291(a) of title 28.''.
    (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 2004), the trustee may not avoid a 
transfer made by the debtor under 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 2004), the plan provides for the continuation 
        after its effective date of payment of all payment obligations 
        under title II of that Act.''.
    (i) Effect on Insurance Receivership Proceedings.--
            (1) Lien.--In an insurance receivership proceeding 
        involving a direct insurer, reinsurer or runoff participant, 
        there shall be a lien in favor of the Fund for the amount of 
        any assessment and any such lien shall be given priority over 
        all other claims against the participant in receivership, 
        except for the expenses of administration of the receivership. 
        Any State law that provides for priorities inconsistent with 
        this provision is preempted by this Act.
            (2) Payment of assessment.--Payment of any assessment 
        required by this Act shall not be subject to any automatic or 
        judicially entered stay in any insurance receivership 
        proceeding. This Act shall preempt any State law requiring that 
        payments by a direct insurer, reinsurer or runoff participant 
        in an insurance receivership proceeding be approved by a court, 
        receiver or other person. Payments of assessments by any direct 
        insurer or reinsurer participant under this Act shall not be 
        subject to the avoidance powers of a receiver or a court in or 
        relating to an insurance receivership proceeding.

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, including any claim described in 
subsection (d)(2).
    (b) Superseding Provisions.--
            (1) In general.--Any agreement, understanding, or 
        undertaking by any person or affiliated group with respect to 
        the treatment of any asbestos claim that requires future 
        performance by any party, insurer of such party, settlement 
        administrator, or escrow agent 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, including any claim 
described in subsection (d)(2), under any Federal or State law.
    (d) Bar on Asbestos Claims.--
            (1) In general.--No asbestos claim, including any claim 
        described in subsection (d)(2), may be pursued and no pending 
        asbestos claim may be maintained 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) Certain specified claims.--
                    (A) In general.--Subject to section 404 (d) and 
                (e)(3) of this Act, no claim may be brought or pursued 
                in any Federal or State court or insurance receivership 
                proceeding--
                            (i) relating to any default, confessed or 
                        stipulated judgment on an asbestos claim if the 
                        judgment debtor expressly agreed, in writing or 
                        otherwise, not to contest the entry of judgment 
                        against it and the plaintiff expressly agreed, 
                        in writing or otherwise, to seek satisfaction 
                        of the judgment only against insurers or in 
                        bankruptcy;
                            (ii) relating to the defense, 
                        investigation, handling, litigation, settlement 
                        or payment of any asbestos claim by any 
                        participant, including claims for bad faith or 
                        unfair or deceptive claims handling or breach 
                        of any duties of good faith; or
                            (iii) arising out of or relating to the 
                        asbestos-related injury of any individual and--
                                    (I) asserting any conspiracy, 
                                concert of action, aiding or abetting, 
                                act, conduct, statement, misstatement, 
                                undertaking, publication, omission, or 
                                failure to detect, speak, disclose, 
                                publish or warn relating to the 
                                presence or health effects of asbestos 
                                or the use, sale, distribution, 
                                manufacture, production, development, 
                                inspection, advertising, marketing or 
                                installation of asbestos; or
                                    (II) asserting any conspiracy, act, 
                                conduct, statement, omission or failure 
                                to detect, disclose or warn relating to 
                                the presence or health effects of 
                                asbestos or the use, sale, 
                                distribution, manufacture, production, 
                                development, inspection, advertising, 
                                marketing or installation of asbestos, 
                                asserted as or in a direct action 
                                against an insurer or reinsurer based 
                                upon any theory, statutory, contract, 
                                tort or otherwise; or
                            (iv) by any third party, and premised on 
                        any theory, allegation or cause of action, for 
                        reimbursement of health care costs allegedly 
                        associated with the use of or exposure to 
                        asbestos, whether such claim is asserted 
                        directly, indirectly or derivatively.
                    (B) Exceptions.--Subparagraph (A) (ii) and (iii) 
                shall not apply to claims against participants by 
                persons--
                            (i) with whom the participant is in privity 
                        of contract;
                            (ii) who have received an assignment of 
                        insurance rights not otherwise voided by this 
                        Act; or
                            (iii) who are beneficiaries covered by the 
                        express terms of a contract with that 
                        participant.
            (3) Preemption.--Any action asserting an asbestos claim, 
        including a claim described in subsection (d)(2), in any 
        Federal or State court, 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.
            (4) 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 
        court denies the motion to dismiss, it shall stay further 
        proceedings until final disposition of any appeal taken under 
        this Act.
            (5) Removal.--
                    (A) In general.--If an action in any State court 
                under paragraph (3) 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) determining whether the claim 
                        presented is an asbestos claim as defined by 
                        this Act.
            (6) Credits.--If, notwithstanding the express intent of 
        Congress stated in this section, any court finally determines 
        for any reason that an asbestos claim including a claim 
        described under paragraph (2) for which, before the date of 
        enactment of this Act, there had been no order or judgment duly 
        entered by a court no longer subject to any appeal or review, 
        is not subject to the exclusive remedy or preemption provisions 
        of this section, then any participant required to satisfy a 
        final judgment executed with respect to any such claim may 
        elect to receive a credit against any assessment owed to the 
        Fund equal to the amount of the payment made with respect to 
        such executed judgment. The Administrator shall require 
        participants seeking credit under this section to demonstrate 
        that the participant timely pursued all available remedies, 
        including remedies available under this section to obtain 
        dismissal of the claim, and that the participant notified the 
        Administrator at least 20 days before the expiration of any 
        period within which to appeal the denial of a motion to dismiss 
        based on this section. The Administrator may require such 
        participant to furnish such further information as is necessary 
        and appropriate to establish eligibility for and the amount of 
        the credits. The Administrator may intervene in any action in 
        which a credit may be due under this section.

SEC. 404. EFFECT ON INSURANCE AND REINSURANCE CONTRACTS.

    (a) Erosion of Insurance Coverage Limits.--
            (1) Definitions.--In this section, the following 
        definitions shall apply:
                    (A) Deemed erosion amount.--The term ``deemed 
                erosion amount'' means the amount of erosion deemed to 
                occur at enactment under paragraph (2).
                    (B) Early sunset.--The term ``early sunset'' means 
                an event causing termination of the program under 
                section 405(f) which relieves the insurer participants 
                of paying some portion of the aggregate payment level 
                of $46,025,000,000 required in section 212(a)(2)(A).
                    (C) Earned erosion amount.--The term ``earned 
                erosion amount'' means, in the event of any early 
                sunset under section 405(f), the percentage, as set 
                forth in the following schedule, depending on the year 
                in which the defendant participants' funding 
                obligations end, of those amounts which, at the time of 
                the early sunset, a defendant participant has paid to 
                the fund and remains obligated to pay into the fund.

                                                                       
Year After Enactment In Which                                Applicable
Defendant Participant's                                     Percentage:
Funding Obligation Ends:
    10............................................               70.78 
    11............................................               68.75 
    12............................................               67.06 
    13............................................               65.63 
    14............................................               64.40 
    15............................................               63.33 
    16............................................               62.40 
    17............................................               61.58 
    18............................................               60.39 
    19............................................               59.33 
    20............................................               58.38 
    21............................................               57.51 
    22............................................               56.36 
    23............................................               55.31 
    24............................................               56.71 
    25............................................               58.11 
    26............................................               59.51 
                    (D) 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.
                    (E) Scheduled payment amounts.--The term 
                ``scheduled payment amounts'' means the future payment 
                obligation to the Fund under this Act from a defendant 
                participant in the amount established under sections 
                203 and 204.
                    (F) Unearned erosion amount.--The term ``unearned 
                erosion amount'' means, in the event of any early 
                sunset under section 405(f), the difference between the 
                deemed erosion amount and the earned erosion amount.
            (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 59.64 
                percent of each defendant participant's scheduled 
                payment amount.
                    (B) No erosion upon contingent call.--Any 
                contingent payment required by the Administrator of any 
                defendant participant shall not be deemed to erode 
                remaining aggregate product limits.
                    (C) 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.
                    (D) Policies without certain limits or with 
                exclusion.--Other than under subparagraph (F), 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.
                    (E) 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 59.64 percent of the scheduled payment amount of 
                the single payment obligation 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 59.64 percent of the 
                affiliated group's scheduled payment amount, as 
                measured by the individual defendant participant's 
                percentage share of the affiliated group's prior 
                asbestos expenditures.
                    (F) Rule of construction.--Notwithstanding any 
                other provision of this section, nothing in this 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 to which an insurer participant and a 
                        defendant participant are parties 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) Restoration of aggregate product limits upon early 
        sunset.--
                    (A) Restoration.--In the event of an early sunset, 
                any unearned erosion amount will be deemed restored as 
                aggregate products limits available to a defendant 
                participant as of the date of enactment.
                    (B) Method of restoration.--The unearned erosion 
                amount will be deemed restored to each defendant 
                participant's policies in such a manner that the last 
                limits that were deemed eroded at enactment under this 
                subsection are deemed to be the first limits restored 
                upon early sunset.
                    (C) Tolling of coverage claims.--In the event of an 
                early sunset, the applicable statute of limitations and 
                contractual provisions for the filing of claims under 
                any insurance policy with restored aggregate product 
                limits shall be deemed tolled after the date of 
                enactment through the date 6 months after the date of 
                early sunset.
            (5) Payments by defendant participant.--Payments made by a 
        defendant participant shall be deemed to erode, exhaust or 
        otherwise satisfy 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.
            (6) 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.
    (b) 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 after the date 
        of such modification.
    (c) 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.
    (d) Finite Risk Policies Not Affected.--
            (1) In general.--Notwithstanding any other provision of 
        this Act, this Act shall not alter, affect or impair any rights 
        or obligations of--
                    (A) any party to an insurance contract that 
                expressly provides coverage for governmental charges or 
                assessments imposed to replace insurance or reinsurance 
                liabilities in effect on the date of enactment of this 
                Act; or
                    (B) subject to paragraph (2), any person with 
                respect to any insurance or reinsurance purchased by a 
                participant after December 31, 1996, that expressly 
                (but not necessarily exclusively) provides coverage for 
                asbestos liabilities, including those policies commonly 
                referred to as ``finite risk'' policies.
            (2) Limitation.--No person may assert that any amounts paid 
        to the Fund in accordance with this Act are covered by any 
        policy described under paragraph (1)(B) purchased by a 
        defendant participant, unless such policy specifically provides 
        coverage for required payments to a Federal trust fund 
        established by a Federal statute to resolve asbestos injury 
        claims.
    (e) Effect on Certain Insurance and Reinsurance Claims.--
            (1) No coverage for fund assessments.--No participant or 
        captive insurer may pursue an insurance or reinsurance claim 
        against another participant or captive insurer for payments to 
        the Fund required under this Act, except under a contract 
        specifically providing insurance or reinsurance for required 
        payments to a Federal trust fund established by a Federal 
        statute to resolve asbestos injury claims or, where applicable, 
        under finite risk policies under subsection (d).
            (2) Certain insurance assignments voided.--Any assignment 
        of any rights to insurance coverage for asbestos claims to any 
        person who has asserted an asbestos claim before the effective 
        date, or to any trust, person or other entity not part of an 
        affiliated group as defined in section 201(1) of this Act 
        established or appointed for the purpose of paying asbestos 
        claims which were asserted before the effective date, or by any 
        Tier I defendant participant, before any sunset of this Act, 
        shall be null and void. This subsection shall not void or 
        affect in any way any assignments of rights to insurance 
        coverage other than to asbestos claimants or to trusts, 
        persons, or other entities not part of an affiliated group as 
        defined in section 201(1) of this Act established or appointed 
        for the purpose of paying asbestos claims, or by Tier I 
        defendant participants.
            (3) Insurance claims preserved.--Notwithstanding any other 
        provision of this Act, this Act shall not alter, affect or 
        impair any rights or obligations of any person with respect to 
        any insurance or reinsurance for amounts that any person pays, 
        has paid or becomes legally obligated to pay in respect of 
        asbestos or other claims, except to the extent that--
                    (A) such person pays or becomes legally obligated 
                to pay claims that are superseded by section 403 of 
                this Act;
                    (B) any such rights or obligations of such person 
                with respect to insurance or reinsurance are prohibited 
                by subsection (e) (1) or (2) of this section; or
                    (C) the limits of insurance otherwise available to 
                such participant in respect of asbestos claims are 
                deemed to be eroded under subsection (a) of this 
                section.

SEC. 405. ANNUAL REPORT OF THE ADMINISTRATOR.

    (a) In General.--The Administrator shall submit an annual report to 
the Committee on the Judiciary of the Senate and the Committee on the 
Judiciary of the House of Representatives on the operation of the 
Asbestos Injury Claims Resolution Fund within 6 months after the close 
of each fiscal year.
    (b) Contents of Report.--The annual report submitted under this 
subsection shall include--
            (1) a summary of the claims made during the most recent 
        fiscal year, including--
                    (A) the number of claims made to the Office and a 
                description of the types of medical diagnoses and 
                asbestos exposure underlying those claims; and
                    (B) the number of claims denied by the Office and a 
                description of the types of medical diagnoses and 
                asbestos exposures underlying those claims, and a 
                general description of the reasons for their denial;
            (2) a summary of the eligibility determinations made by the 
        Office under section 114;
            (3) a summary of the awards made from the Fund, including 
        the amount of the awards;
            (4) an analysis of the financial condition of the Fund, 
        including an estimation of the Fund's ability to pay claims for 
        the subsequent 5 years in full as and when required, an 
        evaluation of the Fund's ability to retire its existing debt 
        and assume additional debt, and an evaluation of the Fund's 
        ability to satisfy other obligations under the program;
            (5) a statement of the percentage of asbestos claimants who 
        filed claims during the prior calendar year and were determined 
        to be eligible to receive compensation under this Act, who have 
        received the compensation to which they are entitled according 
        to section 133 for each level;
            (6) the identity of all participants and a summary of the 
        funding allocations of each participant, including the amounts 
        of all payments to the Fund;
            (7) 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;
            (8) a summary of the investments made under section 222(b);
            (9) a summary of all referrals made to law enforcement 
        authorities under section 408 and of any legal actions brought 
        or penalties imposed under section 223;
            (10) an estimate of the number and types of claims, the 
        amount of awards, and the participant payment obligations for 
        the next fiscal year;
            (11) any recommendations from the Advisory Committee on 
        Asbestos Disease Compensation and the Medical Advisory 
        Committee of the Fund to improve the diagnostic, exposure, and 
medical criteria so as to pay only those claimants whose injuries are 
caused by exposure to asbestos;
            (12) a summary of the results of audits conducted under 
        section 115; and
            (13) a summary of prosecutions under section 1348 of title 
        18, United States Code (as added by this Act).
    (c) Claims Analysis.--If the Administrator concludes, on the basis 
of the annual report submitted under this section, that the Fund is 
compensating claims for injuries that are not caused by exposure to 
asbestos and compensating such claims may, currently or in the future, 
undermine the Fund's ability to compensate persons with injuries that 
are caused by exposure to asbestos, he or she must include in the 
report an analysis of the reasons for the situation, a description of 
the range of reasonable alternatives for responding to the situation, 
and a recommendation as to which alternative best serves the interest 
of claimants and the public. The report may include a description of 
changes in the diagnostic, exposure or medical criteria of section 121 
that the Administrator believes may be necessary to protect the Fund 
from compensating claims not caused by exposure to asbestos.
    (d) Shortfall Analysis.--
            (1) In general.--If the Administrator concludes, on the 
        basis of the information contained in the annual report 
        submitted under this section, that the Fund may not be able to 
        pay claims as they become due at any time within the next 5 
        years, the Administrator must include in the report an analysis 
        of the reasons for the situation, an estimation of when the 
        Fund will no longer be able to pay claims as they become due, a 
        description of the range of reasonable alternatives for 
        responding to the situation, and a recommendation as to which 
        alternative best serves the interest of claimants and the 
        public. The report may include a description of changes in the 
        diagnostic, exposure or medical criteria of section 121 that 
        the Administrator believes may be necessary to protect the 
        Fund. The range of alternatives may include--
                    (A) triggering the termination of this Act under 
                subsection (f) at any time after 7 years following the 
                date of enactment of this Act, and
                    (B) reform of the program set forth in titles I and 
                II of this Act (including changes in the diagnostic, 
                exposure or medical criteria, changes in the 
                enforcement or application of those criteria, changes 
                in the timing of payments, or changes in award values).
            (2) Considerations.--In formulating recommendations, the 
        Administrator shall take into account the reasons for any 
        shortfall, actual or projected, which may include--
                    (A) financial factors (such as inadequate return on 
                investments);
                    (B) the operation of the Fund generally (including 
                the operation of the diagnostic, exposure and medical 
                criteria, potential problems of fraud, the adequacy of 
                the criteria to rule out idiopathic mesothelioma, and 
                inadequate flexibility to extend the timing of 
                payments);
                    (C) the actual incidence of diseases such as 
                mesothelioma;
                    (D) compensation of diseases with alternative 
                causes; and
                    (E) any other factor that the Administrator 
                considers relevant.
            (3) Recommendation of termination.--Any recommendation of 
        termination should include a plan for winding up the affairs of 
        the Fund (and the program generally) within a defined period, 
        including paying in full all claims resolved at the time the 
        report is prepared.
            (4) Resolved claims.--For purposes of this section, a claim 
        shall be deemed resolved when the Administrator has determined 
        the amount of the award due the claimant, and either the 
        claimant has waived judicial review or the time for judicial 
        review has expired.
    (e) Recommendations of Administrator and Commission.--
            (1) In general.--If the Administrator recommends changes to 
        this Act under subsection (c), the recommendations and 
        accompanying analysis shall be referred to a special commission 
        consisting of the Attorney General, the Secretary of Labor, the 
        Secretary of Health and Human Services, the Secretary of the 
        Treasury, and the Secretary of Commerce. The Commission shall 
        hold public hearings on the Administrator's alternatives and 
        recommendations and then make its own recommendations for 
        reform of the program set forth in titles I and II of this Act. 
        Within 180 days after receiving the Administrator's 
        recommendations, the Commission shall transmit its own 
        recommendations to the Congress in the same manner as set forth 
        in subsection (a).
            (2) Referral.--If the Administrator recommends changes to, 
        or termination of, this Act under subsection (d), the 
        recommendations and accompanying analysis shall be referred to 
        the Commission. The Commission shall hold public hearings on 
        the Administrator's alternatives and recommendations and then 
        make its own recommendations for reform of the program set 
        forth in titles I and II of this Act. Within 180 days after 
        receiving the Administrator's recommendations, the Commission 
        shall transmit its own recommendations to the Congress in the 
        same manner as set forth in subsection (a).
    (f) Sunset of Act.--
            (1) In general.--At any time after 7 years following the 
        date on which the Administrator begins processing claims, if 
        the Administrator determines that, if any additional claims are 
        resolved, the Fund will not have sufficient resources when 
        needed to pay 100 percent of all resolved claims while also 
        making its debt repayment obligations and meeting its other 
        obligations under this Act, the provisions of this Act set 
        forth in paragraph (3) shall terminate and be of no further 
        effect 180 days after the Administrator's determination as to 
        all asbestos claims that have not been resolved by the Fund as 
        of the date of the determination, unless Congress passes 
        legislation continuing the Fund.
            (2) Resolved claims.--In the event of sunset, all resolved 
        claims shall be paid in full by the Fund.
            (3) Terminated provisions.--Subject to paragraph (4), the 
        provisions of this Act subject to termination under paragraph 
        (1) are titles I (except subtitle A) and II and sections 403 
        and 404(e)(2).
            (4) Continued funding.--If provisions of this Act terminate 
        under paragraph (1), participants will still be required to 
        make payments as provided under subtitles A and B of title II. 
        If the full amount of payments required by title II is not 
        necessary for the Fund to pay claims that have been resolved as 
        of the date of termination, pay the Fund's debt, and support 
        the Fund's continued operation as needed to pay such claims and 
        debt, the Administrator may reduce such payments. Any such 
        reductions shall be allocated among participants in 
        approximately the same proportion as the liability under 
        subtitles A and B of title II.
            (5) Definitions.--In this subsection--
                    (A) the term ``sunset claims'' means claims as to 
                which this Act has terminated; and
                    (B) the term ``sunset claimants'' means persons 
                asserting such claims.
            (6) Sunset claims.--If this Act terminates in accordance 
        with paragraph (1), then the applicable statute of limitations 
        for the filing of sunset claims under subsection (g) shall be 
        deemed tolled for any past or pending sunset claimants while 
        they were pursuing claims filed under this Act. For those 
        claimants who decide to pursue a sunset claim in accordance 
        with subsection (g), the applicable statute of limitations 
        shall apply, except that claimants who filed a claim against 
        the Fund under this Act before the date of termination shall 
        have 2 years after the date of termination to file a sunset 
        claim in accordance with subsection (g), whichever is longer.
    (g) Nature of Claim After Sunset.--
            (1) In general.--On and after the date of termination under 
        subsection (f), any individual injured as a result of exposure 
        to asbestos, who has not previously had a claim resolved by the 
        Fund, may in a civil action obtain relief in damages subject to 
        the terms and conditions under this subsection and paragraph 
        (6) of subsection (f), except--
                    (A) an individual who received an award for a 
                nonmalignant disease (Levels I through V) from the Fund 
                may assert a claim for a malignant disease under this 
                subsection, unless the malignancy was diagnosed or the 
                claimant had discovered facts that would have led a 
                reasonable person to obtain such a diagnosis before the 
                date on which the nonmalignant claim was settled; and
                    (B) an individual who received an award for a 
                nonmalignant or malignant disease (except mesothelioma) 
                (Levels I through IX) from the Fund may assert a claim 
                for mesothelioma under this subsection, unless the 
                mesothelioma was diagnosed or the claimant had 
                discovered facts that would have led a reasonable 
                person to obtain such a diagnosis before the date on 
                which the nonmalignant or other malignant claim was 
                settled.
            (2) Exclusive jurisdiction.--The United States district 
        courts shall have exclusive jurisdiction of all actions under 
        paragraph (1), to the exclusion of State courts and any other 
        forum. As of the effective date of a termination of this Act 
        under subsection (f), an action under paragraph (1) shall be 
        the exclusive remedy for any asbestos claim that might 
        otherwise exist under Federal, State or other law, regardless 
        of whether such claim arose before or after the effective date 
        of this Act or of the termination of this Act, except that 
        claims against the Fund that have been resolved before the date 
        of the termination determination under subsection (f) may be 
        paid by the Fund.
            (3) Venue.--Actions under paragraph (1) shall be brought 
        only in the United States district court for the judicial 
        district where the claimant resides or the exposure is alleged 
        to have occurred.
            (4) Applicable law.--An action under paragraph (1) shall be 
        governed by Federal common law, except that where national 
        uniformity is not required the court must utilize otherwise 
        applicable State law, including State statutes, to provide the 
        appropriate rule of Federal common law.

SEC. 406. 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 this Act; or
            (2) obligate the United States Government to pay any award 
        or part of an award, if amounts in the Fund are inadequate.

SEC. 407. RULES OF CONSTRUCTION.

    (a) 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.
    (b) Health Care From Provider of Choice.--Nothing in this Act shall 
be construed to preclude any eligible claimant from receiving health 
care from the provider of their choice.

SEC. 408. VIOLATIONS OF ENVIRONMENTAL AND OCCUPATIONAL HEALTH AND 
              SAFETY REQUIREMENTS.

    (a) 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 the Toxic Substances Control Act 
(15 U.S.C. 2601 et seq.), relating to the manufacture, importation, 
processing, disposal and distribution in commerce of asbestos-
containing products, the Administrator 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, 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.
    (b) 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 the Clean Air Act (42 U.S.C. 7401 
et seq.), relating to asbestos as a hazardous air pollutant, the 
Administrator 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.
    (c) 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 shall refer the 
matter in writing within 30 days after receiving that information and 
refer the matter to--
            (1) the United States Attorney for possible criminal 
        prosecution under section 5(a) of such Act (29 U.S.C. 654(a));
            (2) 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
            (3) 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).
    (d) 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--
            (1) appropriate changes are made within the guidelines to 
        reflect any statutory amendments that have occurred since the 
        time that the current guideline was promulgated;
            (2) 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; recordkeeping, 
        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;
            (3) 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--
                    (A) involves asbestos as a hazardous or toxic 
                substance; and
                    (B) occurs after the date of enactment of this Act;
            (4) 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;
            (5) 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
            (6) 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 Office 
        of Asbestos Disease Compensation.

SEC. 409. NONDISCRIMINATION OF HEALTH INSURANCE.

    (a) Denial, Termination, or Alteration of Health Coverage.--No 
health insurer offering a health plan may deny or terminate coverage, 
or in any way alter the terms of coverage, of any claimant or the 
beneficiary of a claimant, on account of the participation of the 
claimant or beneficiary in a medical monitoring program under this Act, 
or as a result of any information discovered as a result of such 
medical monitoring.
    (b) Definitions.--In this section:
            (1) Health insurer.--The term ``health insurer'' means--
                    (A) an insurance company, health care service 
                contractor, fraternal benefit organization, insurance 
                agent, third party administrator, insurance support 
                organization, or other person subject to regulation 
                under the laws related to health insurance of any 
                State;
                    (B) a managed care organization; or
                    (C) an employee welfare benefit plan regulated 
                under the Employee Retirement Income Security Act of 
                1974 (29 U.S.C. 1001 et seq.).
            (2) Health plan.--The term ``health plan'' means--
                    (A) a group health plan (as such term is defined in 
                section 607 of the Employee Retirement Income Security 
                Act of 1974 (29 U.S.C. 1167)), and a multiple employer 
                welfare arrangement (as defined in section 3(4) of such 
                Act) that provides health insurance coverage; or
                    (B) any contractual arrangement for the provision 
                of a payment for health care, including any health 
                insurance arrangement or any arrangement consisting of 
                a hospital or medical expense incurred policy or 
                certificate, hospital or medical service plan contract, 
                or health maintenance organizing subscriber contract.
    (c) Conforming Amendments.--
            (1) ERISA.--Section 702(a)(1) of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1182(a)(1)), is amended 
        by adding at the end the following:
                    ``(I) Participation in a medical monitoring program 
                under the Fairness in Asbestos Injury Resolution Act of 
                2004.''.
            (2) Public service health act.--Section 2702(a)(1) of the 
        Public Health Service Act (42 U.S.C. 300gg-1(a)(1)) is amended 
        by adding at the end the following:
                    ``(I) Participation in a medical monitoring program 
                under the Fairness in Asbestos Injury Resolution Act of 
                2004.''.
            (3) Internal revenue code of 1986.--Section 9802(a)(1) of 
        the Internal Revenue Code of 1986 is amended by adding at the 
        end the following:
                    ``(I) Participation in a medical monitoring program 
                under the Fairness in Asbestos Injury Resolution Act of 
                2004.''.

                         TITLE V--ASBESTOS BAN

SEC. 501. PROHIBITION ON ASBESTOS CONTAINING PRODUCTS.

    (a) In General.--Title II of the Toxic Substances Control Act (15 
U.S.C. 2641 et seq.) is amended--
            (1) by inserting before section 201 (15 U.S.C. 2641) the 
        following:

                  ``Subtitle A--General Provisions'';

        and
            (2) by adding at the end the following:

           ``Subtitle B--Ban of Asbestos Containing Products

``SEC. 221. 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 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 (b), 
                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 of 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 Amendments.--The table of contents in 
section 1 of the Toxic Substances Control Act (15 U.S.C. prec. 2601) is 
amended--
            (1) by inserting before the item relating to section 201 
        the following:

                  ``Subtitle A--General Provisions'';

        and
            (2) by adding at the end of the items relating to title II 
        the following:

           ``Subtitle B--Ban of Asbestos Containing Products

``Sec. 221. Ban of asbestos containing products.''.




                                                       Calendar No. 472

108th CONGRESS

  2d Session

                                S. 2290

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                             April 8, 2004

            Read the second time and placed on the calendar