[Congressional Record Volume 152, Number 18 (Tuesday, February 14, 2006)]
[Senate]
[Pages S1183-S1319]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

                                 ______
                                 
  SA 2767. Mr. DAYTON submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 98, strike lines 6 through 17, and insert the 
     following:
       (4) Waiver for workers and residents of vermiculite mining 
     and processing communities.--
       (A) In general.--Because of the nature of asbestos exposure 
     related to the vermiculite mining operations in Libby, 
     Montana, and the vermiculite processing operations associated 
     with such mining operations, the Administrator shall waive 
     the exposure requirements under this subtitle for individuals 
     who worked--
       (i) at the vermiculite mining operations in Libby, Montana, 
     or lived or worked within a 20-mile radius of such mining 
     operations, for at least 12 months before December 31, 2004; 
     and
       (ii) at sites processing vermiculite mined from mining 
     operations in Libby, Montana; or
       (iii) or lived within a 20 mile radius of a processing site 
     described in clause (ii), for at least 12 months before 
     December 31, 2004.
       (B) Required documentation.--Claimants under this paragraph 
     shall provide such supporting documentation as the 
     Administrator shall require.
       On page 118, strike line 6 and all that follows through 
     page 120, line 4, and insert the following:
       (8) Vermiculite mining and processing claimants.--
       (A) In general.--A vermiculite mining and processing 
     claimant, as described under subsection (c)(4), may elect to 
     have the claimant's claim designated as an exceptional 
     medical claim and referred to a Physicians Panel for review. 
     In reviewing the medical evidence submitted by such a 
     claimant in support of that claim, the Physicians Panel shall 
     take into consideration the unique and serious nature of 
     asbestos exposure in vermiculite mining and processing 
     operations, including the nature of the pleural disease 
     related to asbestos exposure from such sites.
       (B) Claims.--For all claims for Levels II through IV filed 
     by vermiculite mining and processing claimants, as described 
     under subsection (c)(4), once the Administrator or the 
     Physicians Panel issues a certificate of medical eligibility 
     to such claimant, and notwithstanding the disease category 
     designated in the certificate or the eligible disease or 
     condition established in accordance with this section, or the 
     value of the award determined in accordance with section 114, 
     such claimant shall be entitled to an award that is not less 
     than that awarded to claimants who suffer from asbestosis, 
     Level IV. For all malignant claims filed by vermiculite 
     mining and processing claimants, such claimant shall be 
     entitled to an award that corresponds to the malignant 
     disease category designated by the Administrator or the 
     Physicians Panel.
       On page 366, strike lines 2 through 8, and insert the 
     following:
       (a) Vermiculite Mining and Processing 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 
     vermiculite mining and processing communities, as described 
     under section 121(c)(4). The payment of any such medical 
     expenses shall not be collateral source compensation as 
     defined under section 134(a).
                                 ______
                                 
  SA 2768. Mr. KERRY submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 123, between lines 2 and 3, insert the following:

     SEC. 122. WAIVER FOR VETERANS.

       Notwithstanding any other provision of this Act, because of 
     the unique, short-term nature of the asbestos exposure 
     related to service in the United States military, the 
     Administrator shall waive the exposure requirements of this 
     subtitle for individuals who are veterans of any service of 
     the United States military. Claimants under this section 
     shall provide such supporting documentation as the 
     Administrator shall require.
                                 ______
                                 
  SA 2769. Mr. CORNYN submitted an amendment intended to be proposed by 
him to the bill S. 852, to create a fair and efficient system to 
resolve claims of victims for bodily injury caused by asbestos 
exposure, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 109, strike line 13 and all that follows through 
     page 111, line 2.
       On page 116, strike lines 1 through 23, and insert the 
     following:
       (e) Institute of Medicine Study.--
       (1) Study on other cancers.--Not later than ____________, 
     2006, the Institute of Medicine of the National Academy of 
     Sciences shall complete a study contracted with the National 
     Institutes of Health to determine whether there is a causal 
     link between asbestos exposure and other cancers, including 
     colorectal, laryngeal, esophageal, pharyngeal, and stomach 
     cancers, except for mesothelioma and lung cancers.
       (2) Study criteria.--In conducting the study required under 
     paragraph (1), the Institute of Medicine--
       (A) shall--
       (i) base any evaluation completed during the course of the 
     study only on multicentered, double masked, placebo 
     controlled, randomized clinical trials with explicit data

[[Page S1184]]

     safety and monitoring boards incorporated into the data 
     acquisition process of any such evaluation;
       (ii) if the clinical trials described in clause (i) are not 
     available, base any evaluation completed during the course of 
     the study only on single centered, masked, nonrandomized 
     clinical trials; or
       (iii) if the clinical trials described in clauses (i) or 
     (ii) are not available, employ meta-analysis of all available 
     studies;
       (B) may not consider any studies that did not take out 
     confounding variables; and
       (C) shall reference any other study used to reach the 
     conclusions reported by the Institute.
       (3) Report.--
       (A) In general.--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.
       (B) Effect of report if study not based on appropriate 
     criteria.--Any finding of the Institute of Medicine contained 
     in the report required under subparagraph (A) that is not 
     based on a study conducted in accordance with the 
     requirements described in paragraph (2) shall be deemed to be 
     insufficient to show causation.
       (C) Effect of report if study is based on appropriate 
     criteria.--
       (i) In general.--If the report required under subparagraph 
     (A) is based on a study conducted in accordance with the 
     requirements described in paragraph (2), such report shall be 
     binding on the Administrator and Physicians Panels for 
     purposes of determining whether asbestos exposure is a 
     substantial contributing factor to other cancers not covered 
     by the Fund.
       (ii) Recommendations of additional tiers.--If the report 
     required under subparagraph (A) determines that asbestos 
     exposure is a substantial contributing factor to other 
     cancers not covered by the Fund, in accordance with the 
     requirements of clause (i), the Administrator may recommend 
     that Congress create additional tiers, appropriate criteria, 
     and claims values.
                                 ______
                                 
  SA 2770. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 852, to create a fair and efficient system to 
resolve claims of victims for bodily injury caused by asbestos 
exposure, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 72, line 14, strike ``(f)(8)'' and insert 
     ``(g)(8)''.
       On page 111, strike line 3 and all that follows through 
     page 112, line 14.
       On page 115, line 23, strike ``(g)'' and insert ``(h)''.
       On page 116, between lines 23 and 24, insert the following:
       (f) Institute of Medicine Study on Lung Cancer.--
       (1) Study on lung cancer.--Not later than ____________, 
     2006, the Institute of Medicine of the National Academy of 
     Sciences shall complete a study contracted with the National 
     Institutes of Health to determine whether there is a causal 
     link between asbestos exposure and lung cancer where there is 
     evidence of bilateral pleural plaques or bilateral pleural 
     thickening or bilateral pleural calcification, but no 
     asbestosis.
       (2) Study criteria.--In conducting the study required under 
     paragraph (1), the Institute of Medicine--
       (A) shall--
       (i) base any evaluation completed during the course of the 
     study only on multicentered, double masked, placebo 
     controlled, randomized clinical trials with explicit data 
     safety and monitoring boards incorporated into the data 
     acquisition process of any such evaluation;
       (ii) if the clinical trials described in clause (i) are not 
     available, base any evaluation completed during the course of 
     the study only on single centered, masked, nonrandomized 
     clinical trials; or
       (iii) if the clinical trials described in clauses (i) or 
     (ii) are not available, employ meta-analysis of all available 
     studies;
       (B) may not consider any studies that did not take out 
     confounding variables; and
       (C) shall reference any other study used to reach the 
     conclusions reported by the Institute.
       (3) Report.--
       (A) In general.--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.
       (B) Effect of report if study not based on appropriate 
     criteria.--Any finding of the Institute of Medicine contained 
     in the report required under subparagraph (A) that is not 
     based on a study conducted in accordance with the 
     requirements described in paragraph (2) shall be deemed to be 
     insufficient to show causation.
       (C) Effect of report if study is based on appropriate 
     criteria.--
       (i) In general.--If the report required under subparagraph 
     (A) is based on a study conducted in accordance with the 
     requirements described in paragraph (2), such report shall be 
     binding on the Administrator and Physicians Panels for 
     purposes of determining whether asbestos exposure is a 
     substantial contributing factor to lung cancer not covered by 
     the Fund.
       (ii) Recommendations of additional tiers.--If the report 
     required under subparagraph (A) determines that asbestos 
     exposure is a substantial contributing factor to lung cancer 
     not covered by the Fund, in accordance with the requirements 
     of clause (i), the Administrator may recommend that Congress 
     create additional tiers, appropriate criteria, and claims 
     values.
       On page 116, line 24, strike ``(f)'' and insert ``(g)''.
       On page 118, line 7, strike ``(g)'' and insert ``(h)''.
       On page 125, line 23, strike ``(h)'' and insert ``(i)''.
                                 ______
                                 
  SA 2771. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 852, to create a fair and efficient system to 
resolve claims of victims for bodily injury caused by asbestos 
exposure, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 109, strike line 13 and all that follows through 
     page 112, line 14.
       On page 116, strike lines 1 through 23, and insert the 
     following:
       (e) Institute of Medicine Studies.--
       (1) Study on other cancers.--Not later than ____________, 
     2006, the Institute of Medicine of the National Academy of 
     Sciences shall complete a study contracted with the National 
     Institutes of Health to determine whether there is a causal 
     link between asbestos exposure and other cancers, including 
     colorectal, laryngeal, esophageal, pharyngeal, and stomach 
     cancers, except for mesothelioma and lung cancers.
       (2) Study on lung cancer.--Not later than ____________, 
     2006, the Institute of Medicine of the National Academy of 
     Sciences shall complete a study contracted with the National 
     Institutes of Health to determine whether there is a causal 
     link between asbestos exposure and lung cancer where there is 
     evidence of bilateral pleural plaques or bilateral pleural 
     thickening or bilateral pleural calcification, but no 
     asbestosis.
       (3) Study criteria.--In conducting any study required under 
     paragraph (1) or (2), the Institute of Medicine--
       (A) shall--
       (i) base any evaluation completed during the course of the 
     study only on multicentered, double masked, placebo 
     controlled, randomized clinical trials with explicit data 
     safety and monitoring boards incorporated into the data 
     acquisition process of any such evaluation;
       (ii) if the clinical trials described in clause (i) are not 
     available, base any evaluation completed during the course of 
     the study only on single centered, masked, nonrandomized 
     clinical trials; or
       (iii) if the clinical trials described in clauses (i) or 
     (ii) are not available, employ meta-analysis of all available 
     studies;
       (B) may not consider any studies that did not take out 
     confounding variables; and
       (C) shall reference any other study used to reach the 
     conclusions reported by the Institute.
       (4) Report.--
       (A) In general.--The Institute of Medicine shall issue a 
     report on its findings on causation for each study described 
     under paragraph (1) or (2), each such report shall be 
     transmitted to Congress, the Administrator, the Advisory 
     Committee on Asbestos Disease Compensation or the Medical 
     Advisory Committee, and the Physicians Panels.
       (B) Effect of report if study not based on appropriate 
     criteria.--Any finding of the Institute of Medicine contained 
     in a report required under subparagraph (A) that is not based 
     on a study conducted in accordance with the requirements 
     described in paragraph (3) shall be deemed to be insufficient 
     to show causation.
       (C) Effect of report if study is based on appropriate 
     criteria.--
       (i) In general.--If a report required under subparagraph 
     (A) is based on a study conducted in accordance with the 
     requirements described in paragraph (3), such report shall be 
     binding on the Administrator and Physicians Panels for 
     purposes of determining whether asbestos exposure is a 
     substantial contributing factor to cancers not covered by the 
     Fund.
       (ii) Recommendations of additional tiers.--If the report 
     required under subparagraph (A) determines that asbestos 
     exposure is a substantial contributing factor to cancers not 
     covered by the Fund, in accordance with the requirements of 
     clause (i), the Administrator may recommend that Congress 
     create additional tiers, appropriate criteria, and claims 
     values.
                                 ______
                                 
  SA 2772. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 852, to create a fair and efficient system to 
resolve claims of victims for bodily injury caused by asbestos 
exposure, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 126, between lines 6 and 7, insert the following:
       (i) Guidelines for CT Scans.--
       (1) In general.--Not later than ____________, 2006, the 
     Administrator shall commission the American College of 
     Radiology to develop standard guidelines and a methodology 
     for the use of CT

[[Page S1185]]

     scans as a diagnostic tool for asbestosis, bilateral pleural 
     plaques, bilateral pleural thickening, or bilateral pleural 
     calcification under the Fund.
       (2) Limitation on use of ct scans.--No CT scans may be used 
     for diagnostic purposes under the Fund unless the standard 
     guidelines and methodology developed by the American College 
     of Radiology under paragraph (1) are followed.
                                 ______
                                 
  SA 2773. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 852, to create a fair and efficient system to 
resolve claims of victims for bodily injury caused by asbestos 
exposure, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 105, line 14, strike ``or'' and insert ``and''.
                                 ______
                                 
  SA 2774. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 852, to create a fair and efficient system to 
resolve claims of victims for bodily injury caused by asbestos 
exposure, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 106, line 8, strike all after ``pathology'' through 
     line 10 and insert ``with a College of American Pathologists 
     National Institute for Occupational Safety and Health level 
     of 3 or 4;''.
       On page 106, line 14, strike all after ``percent'' through 
     ``spirometry'' on line 18.
                                 ______
                                 
  SA 2775. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 852, to create a fair and efficient system to 
resolve claims of victims for bodily injury caused by asbestos 
exposure, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 107, line 13, strike all beginning with the comma 
     through ``greater'' on line 15.
                                 ______
                                 
  SA 2776. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 852, to create a fair and efficient system to 
resolve claims of victims for bodily injury caused by asbestos 
exposure, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 108, line 13, strike all beginning with the comma 
     through ``greater'' on line 15.
       On page 108, line 18, insert ``or'' after the semicolon.
       On page 108, strike lines 19 through 21.
       On page 108, line 22, strike ``(iii)'' and insert ``(ii)''.
                                 ______
                                 
  SA 2777. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 852, to create a fair and efficient system to 
resolve claims of victims for bodily injury caused by asbestos 
exposure, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 109, line 13, strike all through page 111, line 2.
                                 ______
                                 
  SA 2778. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 852, to create a fair and efficient system to 
resolve claims of victims for bodily injury caused by asbestos 
exposure, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 111, line 3, strike all through page 112, line 14.
                                 ______
                                 
  SA 2779. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 852, to create a fair and efficient system to 
resolve claims of victims for bodily injury caused by asbestos 
exposure, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 109, strike line 13 and all that follows through 
     page 112, line 14.
                                 ______
                                 
  SA 2780. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 852, to create a fair and efficient system to 
resolve claims of victims for bodily injury caused by asbestos 
exposure, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 92, strike lines 1 through 6.
       On page 108, line 18, insert ``or'' after the semicolon.
       On page 108, strike lines 19 through 21.
       On page 108, strike ``(iii)'' and insert ``(ii)''.
                                 ______
                                 
  SA 2781. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 852, to create a fair and efficient system to 
resolve claims of victims for bodily injury caused by asbestos 
exposure, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 113, line 16, insert ``or'' after the semicolon.
       On page 113, line 19, insert ``and'' after the semicolon.
       On page 113, line 20, strike all through page 114, line 2.
       On page 120, strike lines 10 through 11 and insert the 
     following:
       (D) X-ray.--A claimant may submit an x-ray.
                                 ______
                                 
  SA 2782. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 852, to create a fair and efficient system to 
resolve claims of victims for bodily injury caused by asbestos 
exposure, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 113, line 16, insert ``or'' after the semicolon.
       On page 113, lines 19 and 20, strike ``; or'' and insert 
     ``; and''.
       On page 113, strike line 21 and all that follows through 
     page 114, line 2.
       On page 116, strike line 24 and all that follows through 
     page 118, line 6, and insert the following:
       (f) Institute of Medicine Study on CT Scans.--
       (1) Study on the use of ct scans.--Not later than 
     ____________, 2006, the Institute of Medicine of the National 
     Academy of Sciences shall complete a study contracted with 
     the National Institutes of Health on the use of CT scans as a 
     diagnostic tool for asbestosis, bilateral pleural plaques, 
     bilateral pleural thickening, or bilateral pleural 
     calcification.
       (2) Study criteria.--In conducting the study required under 
     paragraph (1), the Institute of Medicine--
       (A) shall--
       (i) base any evaluation completed during the course of the 
     study only on multicentered, double masked, placebo 
     controlled, randomized clinical trials with explicit data 
     safety and monitoring boards incorporated into the data 
     acquisition process of any such evaluation;
       (ii) if the clinical trials described in clause (i) are not 
     available, base any evaluation completed during the course of 
     the study only on single centered, masked, nonrandomized 
     clinical trials; or
       (iii) if the clinical trials described in clauses (i) or 
     (ii) are not available, employ meta-analysis of all available 
     studies;
       (B) may not consider any studies that did not take out 
     confounding variables; and
       (C) shall reference any other study used to reach the 
     conclusions reported by the Institute.
       (3) Report.--
       (A) In general.--The Institute of Medicine shall issue a 
     report on its findings on the use of CT scans, such report 
     shall be transmitted to Congress, the Administrator, the 
     Advisory Committee on Asbestos Disease Compensation or the 
     Medical Advisory Committee, and the Physicians Panels.
       (B) Effect of report if study not based on appropriate 
     criteria.--Any finding of the Institute of Medicine contained 
     in a report required under subparagraph (A) that is not based 
     on a study conducted in accordance with the requirements 
     described in paragraph (2) shall--
       (i) be deemed to be insufficient to show that it is 
     appropriate to use CT scans as a diagnostic tool for 
     asbestosis, bilateral pleural plaques, bilateral pleural 
     thickening, or bilateral pleural calcification; and
       (ii) not be used for diagnostic purposes under--

       (I) paragraphs (7) or (8) of subsection (d); or
       (II) subsection (g).

       (C) Effect of report if study is based on appropriate 
     criteria.--
       (i) In general.--If a report required under subparagraph 
     (A) is based on a study conducted in accordance with the 
     requirements described in paragraph (2), such report shall be 
     binding on the Administrator and Physicians Panels for 
     purposes of determining whether a CT scan is an appropriate 
     test to use for diagnostic purposes under--

       (I) paragraphs (7) or (8) of subsection (d); or
       (II) subsection (g).

       (ii) Determination as an appropriate test.--If a CT scan is 
     determined to be an appropriate test, the Administrator may 
     acknowledge CT scans as appropriate for diagnostic purposes 
     under--

       (I) paragraphs (7) or (8) of subsection (d); or
       (II) subsection (g).

       On page 120, strike lines 10 through 11, and insert the 
     following:
       (D) X-ray.--A claimant may submit an x-ray.
                                 ______
                                 
  SA 2783. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 852, to create a fair and efficient system to 
resolve claims of victims for bodily injury caused by asbestos 
exposure, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 111, strike lines 12 through 14 and insert a 
     semicolon.
       On page 111, line 17, strike ``and''.
       On page 111, line 24, strike the period and insert ``; 
     and''.
       On page 111, add after line 24 the following:
       (v) evidence of TLC less than 80 percent, and FVC less than 
     the lower limits of normal and FEV1/FVC ratio greater than or 
     equal to 65 percent.

[[Page S1186]]

       On page 114, line 2, strike ``and''.
       On page 114, line 11, strike the period and insert ``; 
     and''.
       On page 114, between lines 11 and 12 insert the following:
       (iv) evidence of TLC less than 80 percent, and FVC less 
     than the lower limits of normal and FEV1/FVC ratio greater 
     than or equal to 65 percent.
                                 ______
                                 
  SA 2784. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 852, to create a fair and efficient system to 
resolve claims of victims for bodily injury caused by asbestos 
exposure, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 116, strike line 1 and all that follows through 
     page 118, line 6, and insert the following:
       (e) Institute of Medicine Study.--
       (1) Study on other cancers.--Not later than ____________, 
     2006, the Institute of Medicine of the National Academy of 
     Sciences shall complete a study contracted with the National 
     Institutes of Health to determine whether there is a causal 
     link between asbestos exposure and other cancers, including 
     colorectal, laryngeal, esophageal, pharyngeal, and stomach 
     cancers, except for mesothelioma and lung cancers.
       (2) Study criteria.--In conducting the study required under 
     paragraph (1), the Institute of Medicine--
       (A) shall--
       (i) base any evaluation completed during the course of the 
     study only on multicentered, double masked, placebo 
     controlled, randomized clinical trials with explicit data 
     safety and monitoring boards incorporated into the data 
     acquisition process of any such evaluation;
       (ii) if the clinical trials described in clause (i) are not 
     available, base any evaluation completed during the course of 
     the study only on single centered, masked, nonrandomized 
     clinical trials; or
       (iii) if the clinical trials described in clauses (i) or 
     (ii) are not available, employ meta-analysis of all available 
     studies;
       (B) may not consider any studies that did not take out 
     confounding variables; and
       (C) shall reference any other study used to reach the 
     conclusions reported by the Institute.
       (3) Report.--
       (A) In general.--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.
       (B) Effect of report if study not based on appropriate 
     criteria.--
       (i) In general.--Any finding of the Institute of Medicine 
     contained in the report required under subparagraph (A) that 
     is not based on a study conducted in accordance with the 
     requirements described in paragraph (2) shall be deemed to be 
     insufficient to show causation.
       (ii) Affect on malignant level vi .--If the report required 
     under subparagraph (A) is not based on a study conducted in 
     accordance with the requirements described in paragraph (2), 
     subsection (d)(6) shall cease to have force or effect for any 
     purpose under this Act.
       (C) Effect of report if study is based on appropriate 
     criteria.--
       (i) In general.--If the report required under subparagraph 
     (A) is based on a study conducted in accordance with the 
     requirements described in paragraph (2), such report shall be 
     binding on the Administrator and Physicians Panels for 
     purposes of determining whether asbestos exposure is a 
     substantial contributing factor under subsection (d)(6)(B).
       (ii) Affect on malignant level vi.--If the report required 
     under subparagraph (A) determines that asbestos exposure is 
     not a substantial contributing factor under subsection 
     (d)(6), such subsection shall cease to have force or effect 
     for any purpose under this Act.
       (f) Institute of Medicine Study on CT Scans.--
       (1) Study on the use of ct scans.--Not later than 
     ____________, 2006, the Institute of Medicine of the National 
     Academy of Sciences shall complete a study contracted with 
     the National Institutes of Health on the use of CT scans as a 
     diagnostic tool for asbestosis, bilateral pleural plaques, 
     bilateral pleural thickening, or bilateral pleural 
     calcification.
       (2) Study criteria.--In conducting the study required under 
     paragraph (1), the Institute of Medicine--
       (A) shall--
       (i) base any evaluation completed during the course of the 
     study only on multicentered, double masked, placebo 
     controlled, randomized clinical trials with explicit data 
     safety and monitoring boards incorporated into the data 
     acquisition process of any such evaluation;
       (ii) if the clinical trials described in clause (i) are not 
     available, base any evaluation completed during the course of 
     the study only on single centered, masked, nonrandomized 
     clinical trials; or
       (iii) if the clinical trials described in clauses (i) or 
     (ii) are not available, employ meta-analysis of all available 
     studies;
       (B) may not consider any studies that did not take out 
     confounding variables; and
       (C) shall reference any other study used to reach the 
     conclusions reported by the Institute.
       (3) Report.--
       (A) In general.--The Institute of Medicine shall issue a 
     report on its findings on the use of CT scans, such report 
     shall be transmitted to Congress, the Administrator, the 
     Advisory Committee on Asbestos Disease Compensation or the 
     Medical Advisory Committee, and the Physicians Panels.
       (B) Effect of report if study not based on appropriate 
     criteria.--Any finding of the Institute of Medicine contained 
     in a report required under subparagraph (A) that is not based 
     on a study conducted in accordance with the requirements 
     described in paragraph (2) shall--
       (i) be deemed to be insufficient to show that it is 
     appropriate to use CT scans as a diagnostic tool for 
     asbestosis, bilateral pleural plaques, bilateral pleural 
     thickening, or bilateral pleural calcification; and
       (ii) not be used for diagnostic purposes under--

       (I) paragraphs (7) or (8) of subsection (d); or
       (II) subsection (g).

       (C) Effect of report if study is based on appropriate 
     criteria.--
       (i) In general.--If a report required under subparagraph 
     (A) is based on a study conducted in accordance with the 
     requirements described in paragraph (2), such report shall be 
     binding on the Administrator and Physicians Panels for 
     purposes of determining whether a CT scan is an appropriate 
     test to use for diagnostic purposes under--

       (I) paragraphs (7) or (8) of subsection (d); or
       (II) subsection (g).

       (ii) Determination as an appropriate test.--If a CT scan is 
     determined to be an appropriate test, the Administrator may 
     acknowledge CT scans as appropriate for diagnostic purposes 
     under--

       (I) paragraphs (7) or (8) of subsection (d); or
       (II) subsection (g).

                                 ______
                                 
  SA 2785. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 852, to create a fair and efficient system to 
resolve claims of victims for bodily injury caused by asbestos 
exposure, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 91, line 6, strike ``\1/0\'' and insert ``\1/1\''.
       On page 106, line 4, strike ``\1/0\'' and insert ``\1/1\''.
       On page 112, line 24, strike ``\1/0\'' and insert ``\1/
     1\''.
                                 ______
                                 
  SA 2786. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 852, to create a fair and efficient system to 
resolve claims of victims for bodily injury caused by asbestos 
exposure, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 87, after line 25, add the following:
       (5) Any B-reader who has received compensation before the 
     date of enactment of this Act for assigning an ILO grade 
     level to an x-ray, where the amount of compensation depended 
     on the assigned ILO grade level, is disqualified from 
     inclusion on the Administrator's list.
                                 ______
                                 
  SA 2787. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 181, between lines 21 and 22, insert the following:
       (4) Limitation on payments by defendant participants.--
       (A) In general.--Under expedited procedures established by 
     the Administrator, any defendant participant may apply for a 
     limitation on its annual payment obligation to the Fund by 
     showing that it qualifies under subparagraph (C). The 
     Administrator shall promptly grant that application if the 
     requirements under subparagraph (C) are satisfied.
       (B) Stay of payment.--A defendant participant who applies 
     for a limitation on its annual payment obligation to the Fund 
     under subparagraph (A) shall have the payment required under 
     subsection (i)(1)(A)(iv) stayed until the Administrator has 
     made a determination with respect to the application of that 
     defendant participant.
       (C) Application for limitation.--A defendant participant 
     may apply under subparagraph (A) for a limit on its annual 
     payment obligation to the Fund if that defendant 
     participant--
       (i) is included in Tiers II, III, IV, V, or VI under 
     section 202; and
       (ii) has prior asbestos expenditures less than $200,000,000 
     and has revenues as determined under section 203 that are 
     less than $10,000,000,000.
       (D) Limitation.--
       (i) In general.--A defendant participant that qualifies for 
     a limitation under this paragraph may apply for only 1 of the 
     limits under subclause (I), (II), or (III) of clause (ii). A 
     defendant participant may not change its application once the 
     application has been approved by the Administrator.

[[Page S1187]]

       (ii) Application for 1 limitation.--Subject to clause (i), 
     a defendant participant may apply for a limit of an amount 
     equal to--

       (I) 125 percent of the arithmetical average for fiscal 
     years 1998 through 2002 of the annual prior asbestos 
     expenditures of that defendant participant;
       (II) 150 percent of the arithmetical average for fiscal 
     years 1998 through 2002 of the annual prior asbestos 
     expenditures of that defendant participant, excluding--

       (aa) the amount of any payments by insurance carriers for 
     the benefit of that defendant participant or on behalf of 
     that defendant participant; and
       (bb) any reimbursements of the amounts actually paid by 
     that defendant participant with respect to prior asbestos 
     expenditures for fiscal years 1998 through 2002, regardless 
     of when such reimbursements were actually paid; or

       (III) 1.67024 percent of the revenues for the most recent 
     fiscal year ending on or prior to December 31, 2002, of the 
     affiliated group to which that defendant participant belongs.

       (E) Judicial review.--A defendant participant is entitled 
     to judicial review under section 303 of a denial of an 
     application under this paragraph. During the pendency of that 
     review, section 223(a) shall not apply to that defendant 
     participant. Without regard to section 305(a), the reviewing 
     court may, in its discretion, provide such interlocutory 
     relief to the defendant participant as may be just.
       (F) Applicability of the guarantee surcharge.--A defendant 
     participant whose application under this paragraph is 
     approved by the Administrator, shall not be exempt from the 
     guaranteed payment surcharge established under subsection 
     (l), unless otherwise provided in this Act.
       (G) Minimum payment.--Notwithstanding any other provision 
     of this paragraph, a defendant participant that is granted a 
     limitation by the Administrator shall pay not less than 5 
     percent of the amount the participant is scheduled to pay 
     under section 202.
       On page 182, line 15, strike ``(5)'' and insert ``(6)''.
       On page 184, line 9, strike ``(6)'' and insert ``(7)''.
                                 ______
                                 
  SA 2788. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       Strike all after ``SECTION 1. SHORT TITLE;'' in the bill 
     and insert the following:
     This Act may be cited as the ``Asbestos and Silica Claims 
     Priorities Act''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds the following:
       (1) Asbestos is a mineral that was widely used before the 
     mid-1970s for insulation, fireproofing, and other purposes.
       (2) Many American workers were exposed to asbestos, 
     especially during the Second World War.
       (3) Long-term exposure to asbestos has been associated with 
     mesothelioma and lung cancer, as well as with such non-
     malignant conditions as asbestosis, pleural plaques, and 
     diffuse pleural thickening.
       (4) Although the use of asbestos has dramatically declined 
     since 1980 and workplace exposures have been regulated since 
     1971 by the Occupational Safety and Health Administration, 
     the diseases caused by asbestos often have long latency 
     periods and past exposures will continue to result in 
     significant claims well into the future.
       (5) Asbestos related claims, driven largely by unimpaired 
     claimants, have flooded our courts such that the United 
     States Supreme Court has characterized the situation as ``an 
     elephantine mass'' that ``calls for national legislation'' 
     (Ortiz v. Fibreboard Corporation, 119 S. Ct. 2295, 2302 
     (1999).
       (6) The American Bar Association supports enactment of 
     Federal legislation that would allow persons alleging non-
     malignant asbestos-related disease claims to file a cause of 
     action in Federal or State court only if those persons meet 
     the medical criteria in the ``ABA Standard for Non-Malignant 
     Asbestos-Related Disease Claims'' and toll all applicable 
     statutes of limitations until such time as the medical 
     criteria in such standard are met.
       (7) Reports indicate that up to 90 percent of asbestos 
     claims are filed by individuals who allege that they have 
     been exposed to asbestos, but who suffer no demonstrable 
     asbestos-related impairment. Lawyer-sponsored x-ray 
     screenings of workers at occupational locations are used to 
     amass large numbers of claimants, the vast majority of whom 
     are unimpaired.
       (8) The costs of compensating unimpaired claimants and 
     litigating their claims jeopardizes the ability of defendants 
     to compensate people with cancer and other serious diseases, 
     threatens the savings, retirement benefits, and jobs of 
     current and retired employees, and adversely affects the 
     communities in which the defendants operate.
       (9) More than 73 companies have declared bankruptcy due to 
     the burden of asbestos litigation. The rate of asbestos-
     driven bankruptcies is accelerating. Between 2000 and 2004, 
     there were more asbestos-related bankruptcy filings than in 
     either of the prior 2 decades.
       (10) Bankruptcies have led plaintiffs and their lawyers to 
     expand their search for solvent peripheral defendants. The 
     number of asbestos defendants now includes over 8,500 
     companies, affecting many small and medium size companies and 
     industries that span 85 percent of the United States economy.
       (11) Efforts to address asbestos litigation may augment 
     silica-related filings.
       (12) Silica is a naturally occurring mineral and is the 
     second most common constituent of the earth's crust. 
     Crystalline silica in the form of quartz is present in sand, 
     gravel, soil, and rocks.
       (13) Silica-related illness, including silicosis can 
     develop from the inhalation of respirable silica dust. 
     Silicosis was widely recognized as an occupational disease 
     many years ago.
       (14) Silica claims, like asbestos claims, often involve 
     individuals with no demonstrable impairment. Claimants 
     frequently are identified through the use of interstate, for-
     profit, screening companies.
       (15) Silica screening processes have been found subject to 
     substantial abuse and potential fraud in Federal silica 
     litigation (In re Silica Prods. Liab. Litig. (MDL No. 1553), 
     398 F. Supp. 2d 563 (S.D. Tex. 2005)) and it therefore is 
     necessary to address silica legislation to preempt an 
     asbestos-like litigation crisis.
       (16) Concerns about statutes of limitations may prompt 
     unimpaired asbestos and silica claimants to bring lawsuits 
     prematurely to protect against losing their ability to assert 
     a claim in the future should they develop an impairing 
     condition.
       (17) Sound public policy requires that the claims of 
     persons with no present physical impairment from asbestos or 
     silica exposure, be deferred to give priority to physically 
     impaired claimants, and to safeguard the jobs, benefits, and 
     savings of workers in affected companies.
       (18) Claimant consolidations, joinders, and similar 
     procedures used by some courts to deal with the mass of 
     asbestos and silica cases can--
       (A) undermine the appropriate functioning of the court 
     system;
       (B) deny due process to plaintiffs and defendants; and
       (C) further encourage the filing of thousands of cases by 
     exposed persons who are not sick and likely will never 
     develop an impairing condition caused by exposure to asbestos 
     or silica.
       (19) Several states have enacted legislation to prioritize 
     asbestos and silica claims that serve as a model for national 
     reform including Texas, Ohio, Florida, and Georgia.
       (20) Asbestos litigation, if left unchecked by reasonable 
     congressional intervention, will--
       (A) continue to inhibit the national economy and run 
     counter to plans to stimulate economic growth and the 
     creation of jobs;
       (B) threaten the savings, retirement benefits, and 
     employment of defendant's current and retired employees;
       (C) affect adversely the communities in which these 
     defendants operate; and
       (D) impair interstate commerce and national initiatives.
       (21) The public interest and the interest of interstate 
     commerce requires deferring the claims of exposed persons who 
     are not sick in order to--
       (A) preserve, now and for the future, defendants' ability 
     to compensate people who develop cancer and other serious 
     asbestos-related injuries; and
       (B) safeguard the jobs, benefits, and savings of American 
     workers and the well-being of the national economy.
       (b) Purposes.--The purposes of this Act are to--
       (1) give priority to current claimants who can demonstrate 
     an asbestos-related or silica-related impairment based on 
     reasonable, objective medical criteria;
       (2) toll the running of statutes of limitations for persons 
     who have been exposed to asbestos or to silica, but who have 
     no present asbestos-related or silica-related impairment; and
       (3) enhance the ability of the courts to supervise and 
     control asbestos and silica litigation.

     SEC. 3. DEFINITIONS.

       In this Act, the following definitions shall apply:
       (1) AMA guides to the evaluation of permanent impairment.--
     The term ``AMA Guides to the Evaluation of Permanent 
     Impairment'' means the most current version of the American 
     Medical Association's Guides to the Evaluation of Permanent 
     Impairment in effect at the time of the performance of any 
     examination or test on the exposed person required by this 
     Act.
       (2) Asbestos.--The term ```asbestos''' means--
       (A) chrysotile;
       (B) amosite;
       (C) crocidolite
       (D) tremolite asbestos;
       (E) anthophyllite asbestos;
       (F) actinolite asbestos;
       (G) winchite;
       (H) richterite;
       (I) asbestiform amphibole minerals; and
       (J) any of the minerals described in subparagraphs (A) 
     through (I) that have been chemically treated or altered, 
     including all minerals defined as asbestos under section 1910 
     of title 29, Code of Federal Regulations in effect at the 
     time an asbestos claim is filed.

[[Page S1188]]

       (3) Asbestos claim.--The term ``asbestos claim''--
       (A) means any claim for damages, losses, indemnification, 
     contribution, or other relief of whatever nature arising out 
     of, based on, or related to the alleged health effects 
     associated with the inhalation or ingestion of asbestos, 
     including--
       (i) loss of consortium;
       (ii) personal injury or death;
       (iii) mental or emotional injury;
       (iv) risk or fear of disease or other injury;
       (v) the costs of medical monitoring or surveillance, to the 
     extent such claims are recognized under State law; or
       (vi) any claim made by, or on behalf of, any person exposed 
     to asbestos, or a representative, spouse, parent, child, or 
     other relative of the exposed person; and
       (B) does not include a claim for compensatory benefits 
     pursuant to a workers' compensation law or a veterans' 
     benefits program.
       (4) Asbestosis.--The term ``asbestosis'' means bilateral 
     diffuse interstitial fibrosis of the lungs caused by 
     inhalation of asbestos.
       (5) Board-certified internist.--The term ``Board-certified 
     internist'' means a qualified physician--
       (A) who is certified by the American Board of Internal 
     Medicine or the American Osteopathic Board of Internal 
     Medicine; and
       (B) whose certification was current at the time of--
       (i) the performance of any examination; and
       (ii) rendition of any report required under this Act.
       (6) Board-certified occupational medicine specialist.--The 
     term ``Board-certified occupational medicine specialist'' 
     means a physician--
       (A) who is certified in the subspecialty of occupational 
     medicine by the American Board of Preventive Medicine or the 
     American Osteopathic Board of Preventive Medicine; and
       (B) whose certification was current at the time of--
       (i) the performance of any examination; and
       (ii) rendition of any report required under this Act.
       (7) Board-certified pathologist.--The term ``Board-
     certified pathologist'' means a qualified physician--
       (A) who holds primary certification in anatomic pathology 
     or combined anatomic or clinical pathology from the American 
     Board of Pathology or the American Osteopathic Board of 
     Internal Medicine;
       (B) whose professional practice is principally in the field 
     of pathology and involves regular evaluation of pathology 
     materials obtained from surgical or post mortem specimens; 
     and
       (C) whose certification was current at the time of--
       (i) any tissue or slide examination; or
       (ii) rendition of any report required under this Act.
       (8) Board-certified pulmonologist.--The term ``Board-
     certified pulmonologist'' means a qualified physician--
       (A) who is certified in the subspecialty of pulmonary 
     medicine by the American Board of Internal Medicine or the 
     American Osteopathic Board of Internal Medicine; and
       (B) whose certification was current at the time of--
       (i) the performance of any examination; and
       (ii) rendition of any report required under this Act.
       (9) Certified b-reader.--The term ``Certified B-reader'' 
     means a person--
       (A) who has successfully passed the B-reader certification 
     examination for x-ray interpretation sponsored by the 
     National Institute for Occupational Safety and Health; and
       (B) whose certification was current at the time of any 
     readings required under this Act.
       (10) Chest x-rays.--The term ``chest x-rays'' means 
     radiographic films taken in accordance with all applicable 
     Federal and State standards and in the posterior-anterior 
     view.
       (11) Claimant.--
       (A) In general.--The term ``claimant'' means any party 
     asserting an asbestos or silica claim, including a--
       (i) plaintiff;
       (ii) counterclaimant;
       (iii) cross-claimant; or
       (iv) third-party plaintiff.
       (B) Claims on behalf of an estate.--If any claim described 
     in subparagraph (A) is brought through, or on behalf of, an 
     estate, the term claimant includes the executor, surviving 
     spouse, or any other descendant of the decedent.
       (C) Claims on behalf of a minor.--If any claim described in 
     subparagraph (A) is brought through, or on behalf of, a minor 
     or incompetent person, the term claimant includes the parent 
     or guardian of such minor.
       (12) DLCO.--The term ``DLCO'' means diffusing capacity of 
     the lung for carbon monoxide, which is the measurement of 
     carbon monoxide transfer from inspired gas to pulmonary 
     capillary blood.
       (13) Exposed person.--
       (A) In general.--The term ``exposed person'' means a person 
     whose claimed exposure to asbestos or silica is the basis for 
     an asbestos or silica claim.
       (B) Silica claims.--With respect to any claim for exposure 
     to silica, the term ``exposed person'' means a person whose 
     claimed exposure to silica is by means of the alleged 
     inhalation of respirable silica.
       (14) FEV-1.--The term ``FEV-1'' means forced expiratory 
     volume in the first second, which is the maximal volume of 
     air expelled in 1 second during performance of simple 
     spirometric tests.
       (15) FVC.--The term ``FVC'' means forced vital capacity, 
     which is the maximal volume of air expired with maximum 
     effort from a position of full inspiration.
       (16) ILO scale.--The term ``ILO scale'' means the system 
     for the classification of chest x-rays set forth in the most 
     current version of the International Labor Office's 
     Guidelines for the Use of ILO International Classification of 
     Radiographs of Pneumoconioses in effect at the time of the 
     performance of any examination or test on the exposed person 
     required by this Act.
       (17) Predicted lower limit of normal.--The term ``predicted 
     lower limit of normal'' means the calculated standard 
     convention lying at the fifth percentile, below the upper 95 
     percent of the reference population, based on age, height, 
     and gender, according to the recommendations of the American 
     Thoracic Society as referenced in the AMA's Guides to the 
     Evaluation of Permanent Impairment.
       (18) Qualified physician.--The term ``qualified physician'' 
     means a board-certified internist, occupational medicine 
     specialist, pathologist, or pulmonologist--
       (A) who is licensed to practice in any State;
       (B) who has personally conducted a physical examination of 
     the exposed person, or in the case of a board-certified 
     pathologist, has examined tissue samples or pathological 
     slides of the exposed person, or if the exposed person is 
     deceased, based upon a detailed review of the medical records 
     and existing tissue samples and pathological slides of the 
     deceased person;
       (C) who is treating or has treated the exposed person, and 
     has or had a doctor-patient relationship with the exposed 
     person at the time of the physical examination or, in the 
     case of a board-certified pathologist, has examined tissue 
     samples or pathological slides of the exposed person at the 
     request of such treating physician; and
       (D) whose diagnosing, examining, testing, screening or 
     treating of the exposed person was not, directly or 
     indirectly, premised upon, and did not require, the exposed 
     person or claimant to retain the legal services of any 
     attorney or law firm.
       (19) Silica.--The term ``silica'' a respirable crystalline 
     form of the naturally occurring mineral form of silicon 
     dioxide, including quartz, cristobalite, and tridymite.
       (20) Silica claim.--The term ``silica claim''--
       (A) means any claim for damages, losses, indemnification, 
     contribution, or other relief of whatever nature arising out 
     of, based on, or in any way related to the alleged health 
     effects associated with the inhalation of silica, including--
       (i) loss of consortium;
       (ii) personal injury or death;
       (iii) mental or emotional injury;
       (iv) risk or fear of disease or other injury;
       (v) the costs of medical monitoring or surveillance, to the 
     extent such claims are recognized under State law; or
       (vi) any claim made by, or on behalf of, any person exposed 
     to silica dust, or a representative, spouse, parent, child, 
     or other relative of the exposed person; and
       (B) does not include a claim for compensatory benefits 
     pursuant to the workers' compensation law or a veterans' 
     benefits program.
       (21) Silicosis.--The term ``silicosis'' means fibrosis of 
     the lung produced by inhalation of silica, including--
       (A) acute silicosis;
       (B) accelerated silicosis; and
       (C) chronic silicosis.
       (22) State.--The term ``State''--
       (A) means any State of the United States; and
       (B) includes--
       (i) the District of Columbia;
       (ii) Commonwealth of Puerto Rico;
       (iii) the Northern Mariana Islands;
       (iv) the Virgin Islands;
       (v) Guam;
       (vi) American Samoa; and
       (vii) any other territory or possession of the United 
     States, or any political subdivision of any of the locales 
     described under this paragraph.
       (23) Substantial contributing factor.--The term 
     ``substantial contributing factor''--
       (A) in the context of an asbestos claim, means that--
       (i) a claimant shall identify--

       (I) the specific asbestos product to which the exposed 
     person was exposed;
       (II) the location and duration of such exposure; and
       (III) the specific circumstances of such exposure;

       (ii) such exposure--

       (I) was more than incidental contact with the product and 
     location; and
       (II) took place on a regular basis over an extended period 
     of time in physical proximity to the exposed person;

       (iii) the exposed person inhaled respirable asbestos fibers 
     in sufficient quantities to be capable of causing harm; and
       (iv) a qualified physician has determined with a reasonable 
     degree of medical certainty that the impairment of the 
     exposed person would not have occurred but for the specific 
     asbestos exposure; and
       (B) in the context of a silica claim, means that--
       (i) a claimant shall identify--

[[Page S1189]]

       (I) the specific silica product to which the exposed person 
     was exposed;
       (II) the location and duration of such exposure; and
       (III) the specific circumstances of such exposure;

       (ii) such exposure--

       (I) was more than incidental contact with the product and 
     location; and
       (II) took place on a regular basis over an extended period 
     of time in physical proximity to the exposed person;

       (iii) the exposed person inhaled respirable silica 
     particles in sufficient quantities to be capable of causing 
     harm; and
       (iv) a qualified physician has determined with a reasonable 
     degree of medical certainty that the impairment of the 
     exposed person would not have occurred but for the specific 
     silica exposure.
       (24) Total lung capacity.--The term ``total lung capacity'' 
     means the volume of gas contained in the lungs at the end of 
     a maximal inspiration.
       (25) 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.
       (26) 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--
       (i) the Act of April 22, 1908 (45 U.S.C. 51 et seq.), 
     commonly known as the Employers' Liability Act, or damages 
     recovered by any employee in a liability action against an 
     employer; or
       (ii) any claim for exemplary or punitive damages by an 
     employee, estate, heir, representative, or any other person 
     or entity against the employer of an exposed person arising 
     out of, or related to, an asbestos-related injury or silica-
     related injury.

     SEC. 4. ELEMENTS OF PROOF FOR ASBESTOS OR SILICA CLAIMS.

       (a) Impairment Essential Element of Claim.--
       (1) In general.--It shall be an essential element to bring 
     or maintain an asbestos or silica claim, that an exposed 
     person suffer a physical impairment, of which asbestos or 
     silica was a substantial contributing factor to such 
     impairment.
       (2) Evidence as to each defendant.--Any requirement of a 
     prima facie showing under this section shall be made as to 
     each defendant against whom a claimant alleges an asbestos or 
     silica claim.
       (b) Preliminary Proceedings; Service of Prima Facie 
     Evidence of Impairment.--
       (1) Filing of report.--A claimant in any civil action 
     alleging an asbestos or silica claim shall file, together 
     with the complaint or other initial pleading, a written 
     report and supporting test results constituting prima facie 
     evidence of the exposed person's asbestos-related or silica-
     related impairment meeting the requirements of this section 
     as to each defendant.
       (2) Timing.--For any asbestos or silica claim pending on 
     the date of enactment of this Act, a claimant shall file the 
     written report and supporting test results described in 
     paragraph (1) not later than 180 days after such date or not 
     later than 60 days prior to the commencement of trial, 
     whichever occurs first.
       (3) Defendants right to challenge.--A defendant shall be 
     afforded a reasonable opportunity to challenge the adequacy 
     of any proffered prima facie evidence of impairment.
       (4) Dismissal.--A claim shall be dismissed without 
     prejudice upon a finding of failure to make the prima facie 
     showing required under this section.
       (c) New Claim Required Information.--
       (1) In general.--Any asbestos claim or silica claim filed 
     in a Federal or State court, on or after on the date of 
     enactment of this Act shall include a sworn information form 
     containing the following information:
       (A) The name, address, date of birth, social security 
     number, and marital status of the claimant.
       (B) The name, last address, date of birth, social security 
     number, and marital status of the exposed person.
       (C) If the claimant alleges exposure to asbestos or silica 
     through the testimony of another person or other than by 
     direct or bystander exposure to a product or products, the 
     name, address, date of birth, social security number, and 
     marital status, for each person by which claimant alleges 
     exposure (hereafter in this subsection referred to as the 
     ``index person'') and the relationship of the claimant to 
     each such person.
       (D) For each alleged exposure of the exposed person and for 
     each index person--
       (i) the specific location and manner of each such exposure;
       (ii) the beginning and ending dates of each such exposure; 
     and
       (iii) the identity of the manufacturer of the specific 
     asbestos or silica to which the exposed person or index 
     person was exposed.
       (E) The occupation and name of the employer of the exposed 
     person at the time of each alleged exposure.
       (F) If the asbestos claim or silica claim involves more 
     than 1 claimant, the identity of the defendant or defendants 
     against whom each claimant asserts a claim.
       (G) The specific disease related to asbestos or silica 
     claimed to exist.
       (H) Any--
       (i) supporting documentation of the condition claimed to 
     exist; and
       (ii) documentation to support the claimant or index 
     person's identification of the asbestos or silica product 
     that such person was exposed to.
       (2) Individual requirement.--
       (A) In general.--All asbestos claims and silica claims 
     along with any sworn information required under paragraph (1) 
     shall be individually filed.
       (B) Class claims not permitted.--No claims on behalf of a 
     group or class of persons shall be permitted.
       (d) Prima Facie Evidence of Physical Impairment for 
     Nonmalignant Asbestos Claims.--
       (1) In general.--No person shall bring or maintain an 
     asbestos claim related to an alleged nonmalignant asbestos-
     related condition in the absence of a prima facie showing of 
     physical impairment of the exposed person for which asbestos 
     exposure is a substantial contributing factor.
       (2) Prima facie showing.--A prima facie showing under 
     paragraph (1) shall be made as to each defendant and include 
     a detailed narrative medical report and diagnosis by a 
     qualified physician that includes:
       (A) Evidence verifying that the diagnosing, qualified 
     physician has taken a detailed occupational and exposure 
     history from the exposed person or, if that person is 
     deceased, from a person who is knowledgeable about the 
     exposures that form the basis for the claim, including 
     identification of--
       (i) all of the exposed person's places of employment and 
     exposure to airborne contaminants (including asbestos, 
     silica, and other disease-causing dusts, mists, fumes, and 
     airborne contaminants) that can cause pulmonary impairment; 
     and
       (ii) the nature, duration, and level of each such exposure.
       (B) Evidence--
       (i) verifying that the diagnosing, qualified physician has 
     taken a detailed medical and smoking history, including a 
     thorough review of--

       (I) the exposed person's past and present medical problems; 
     and
       (II) the most probable cause of each such medical problem; 
     or

       (ii) if the exposed person is deceased, from a person who 
     is knowledgeable regarding such exposed person's medical and 
     smoking history.
       (C) Evidence sufficient to demonstrate--
       (i) that at least 10 years have elapsed since the exposed 
     person's first exposure to asbestos; and
       (ii) the date of any such diagnosis.
       (D) A determination by the diagnosing, qualified physician, 
     on the basis of a medical examination and pulmonary function 
     testing of the exposed person, or if the exposed person is 
     deceased, based upon the medical records of the deceased, 
     that the claimant has, or if deceased, that the claimant had 
     a permanent respiratory impairment rating of at least Class 2 
     as defined by, and evaluated under, the AMA's Guides to the 
     Evaluation of Permanent Impairment.
       (E) Evidence verifying that the exposed person has an ILO 
     quality 1 chest x-ray (or a quality 2 chest x-ray if the 
     exposed person is deceased and a quality 1 chest x-ray does 
     not exist) read by a certified B-reader as showing, according 
     to the ILO scale--
       (i) bilateral small irregular opacities (s, t, or u) graded 
     1/0 or higher on the ILO scale;
       (ii) bilateral pleural thickening graded b2 or higher on 
     the ILO scale including blunting of the costophrenic angle; 
     or
       (iii) pathological asbestosis graded 1(B) or higher under 
     the criteria published in the Asbestos-Associated Diseases, 
     Special Issue of the Archives of Pathological and Laboratory 
     Medicine, Volume 106, Number 11, Appendix 3 (October 8, 
     1982).
       (F) A determination by the diagnosing, qualified physician 
     that asbestosis or diffuse pleural thickening is a 
     substantial contributing factor to the exposed person's 
     physical impairment, based at a minimum on a determination 
     that the claimant has--
       (i) either--

       (I) forced vital capacity below the predicted lower limit 
     of normal and FEV-1/FVC ratio (using actual values) at or 
     above the predicted lower limit of normal; or
       (II) forced vital capacity below the predicted lower limit 
     of normal and total lung capacity, by plethysmography or 
     timed gas dilution, below the predicted lower limit of 
     normal; and

       (ii) diffusing capacity of carbon monoxide below the lower 
     limit of normal or below 80 percent of predicted.
       (G) Verification that the diagnosing, qualified physician 
     has concluded that the exposed person's impairment was not 
     more probably the result of causes other than asbestos 
     exposure as revealed by the employment, medical, and smoking 
     history of the exposed person. Any verification that includes 
     a conclusion which states that the medical findings and 
     impairment are consistent or compatible with asbestos 
     exposure or silica-related disease does not meet the 
     requirements of this subsection.
       (H) Copies of--
       (i) the B-reading, pulmonary function tests (including 
     printouts of the flow volume

[[Page S1190]]

     loops, volume time curves, DLCO graphs, and data for all 
     trials, and all other elements required to demonstrate 
     compliance with the equipment, quality, interpretation, and 
     reporting standards established in this Act);
       (ii) lung volume tests;
       (iii) reports of x-ray examinations and diagnostic imaging 
     of the chest;
       (iv) pathology reports; and
       (v) any other testing reviewed by the diagnosing, qualified 
     physician in reaching the physician's conclusions.
       (e) Prima Facie Evidence of Physical Impairment for 
     Asbestos-Related Cancer.--
       (1) In general.--No person shall bring or maintain an 
     asbestos claim related to an alleged asbestos-related cancer, 
     other than mesothelioma, in the absence of a prima facie 
     showing of a primary cancer for which asbestos exposure is a 
     substantial contributing factor.
       (2) Prima facie showing.--A prima facie showing under 
     paragraph (1) shall be made as to each defendant and include 
     a detailed narrative medical report and diagnosis by a 
     qualified physician that includes:
       (A) Evidence verifying that the diagnosing, qualified 
     physician has taken a detailed occupational and exposure 
     history from the exposed person or, if that person is 
     deceased, from a person who is knowledgeable about the 
     exposures that form the basis for the claim, including 
     identification of--
       (i) all of the exposed person's places of employment and 
     exposure to airborne contaminants (including asbestos, 
     silica, and other disease-causing dusts, mists, fumes, and 
     airborne contaminants) that can cause pulmonary impairment; 
     and
       (ii) the nature, duration, and level of each such exposure.
       (B) Evidence--
       (i) verifying that the diagnosing, qualified physician has 
     taken a detailed medical and smoking history, including a 
     thorough review of--

       (I) the exposed person's past and present medical problems; 
     and
       (II) the most probable cause of each such medical problem; 
     or

       (ii) if the exposed person is deceased, from a person who 
     is knowledgeable regarding such exposed person's medical and 
     smoking history.
       (C) Evidence sufficient to demonstrate--
       (i) that at least 10 years have elapsed since the exposed 
     person's first exposure to asbestos; and
       (ii) the date of any such diagnosis of the cancer.
       (D) Evidence verifying that the exposed person has--
       (i) an ILO quality 1 chest x-ray (or a quality 2 chest x-
     ray if the exposed person is deceased and a quality 1 chest 
     x-ray does not exist) read by a certified B-reader as 
     showing, according to the ILO scale, bilateral small 
     irregular opacities (s, t, or u) graded 1/0 or higher on the 
     ILO scale; or
       (ii) pathological asbestosis graded 1(B) or higher under 
     the criteria published in the Asbestos-Associated Diseases, 
     Special Issue of the Archives of Pathological and Laboratory 
     Medicine, Volume 106, Number 11, Appendix 3 (October 8, 
     1982).
       (E) Verification that the diagnosing, qualified physician 
     has concluded that the exposed person's impairment was not 
     more probably the result of causes other than asbestos as 
     revealed by the employment, medical, and smoking history of 
     the exposed person. Any verification that includes a 
     conclusion which states that the medical findings and 
     impairment are consistent or compatible with asbestos 
     exposure or asbestos-related disease does not meet the 
     requirements of this subsection.
       (F) Copies of--
       (i) the B-reading, pulmonary function tests (including 
     printouts of the flow volume loops, volume time curves, DLCO 
     graphs, and data for all trials, and all other elements 
     required to demonstrate compliance with the equipment, 
     quality, interpretation, and reporting standards established 
     in this Act);
       (ii) lung volume tests;
       (iii) reports of x-ray examinations and diagnostic imaging 
     of the chest;
       (iv) pathology reports; and
       (v) any other testing reviewed by the diagnosing, qualified 
     physician in reaching the physician's conclusions.
       (f) Prima Facie Evidence of Physical Impairment for 
     Asbestos-Related Mesothelioma.--
       (1) In general.--No person shall bring or maintain an 
     asbestos claim related to alleged mesothelioma in the absence 
     of a prima facie showing of an asbestos-related malignant 
     tumor with a primary site of origin in the pleura, the 
     peritoneum, or pericardium.
       (2) Prima facie showing.--A prima facie showing under 
     paragraph (1) shall be made as to each defendant and include 
     a report by a qualified Board-certified pathologist 
     certifying the diagnosis of mesothelioma and a report by a 
     qualified physician certifying that the mesothelioma was not 
     more probably the result of causes other than asbestos 
     exposure as revealed by the employment, medical, and smoking 
     history of the exposed person.
       (g) Prima Facie Evidence of Physical Impairment for Silica 
     Claims.--
       (1) In general.--No person shall bring or maintain a silica 
     claim related to an alleged silica-related condition, other 
     than a silica-related cancer, in the absence of a prima facie 
     showing of physical impairment as a result of a medical 
     condition to which exposure to silica was a substantial 
     contributing factor.
       (2) Prima facie showing.--A prima facie showing under 
     paragraph (1) shall be made as to each defendant and include 
     a detailed narrative medical report and diagnosis by a 
     qualified physician that includes:
       (A) Evidence verifying that the diagnosing, qualified 
     physician has taken a detailed occupational and exposure 
     history from the exposed person or, if that person is 
     deceased, from a person who is knowledgeable about the 
     exposures that form the basis for the claim, including 
     identification of--
       (i) all of the exposed person's places of employment and 
     exposure to airborne contaminants (including asbestos, 
     silica, and other disease-causing dusts, mists, fumes, and 
     airborne contaminants) that can cause pulmonary impairment; 
     and
       (ii) the nature, duration, and level of each such exposure.
       (B) Evidence verifying that the diagnosing, qualified 
     physician has taken a detailed medical and smoking history 
     from the exposed person (or if the exposed person is 
     deceased, from the person most knowledgeable of such 
     history), including a thorough review of--
       (i) the exposed person's past and present medical problems; 
     and
       (ii) the most probable cause of each such medical problem.
       (C) A determination by the diagnosing, qualified physician 
     that the claimant has--
       (i) an ILO quality 1 chest x-ray (or a quality 2 chest x-
     ray if the exposed person is deceased and a quality 1 chest 
     x-ray does not exist) read by a certified B-reader as 
     showing, according to the ILO scale, bilateral predominantly 
     nodular opacities (p, q, or r) occurring primarily in the 
     upper lung fields, graded 1/0 or higher;
       (ii) an ILO quality 1 chest X-ray (or a quality 2 chest X-
     ray if the exposed person is deceased and a quality 1 chest 
     X-ray does not exist) read by a certified B-reader as 
     showing, according to the ILO scale, A, B, or C sized 
     opacities representing complicated silicosis (also known as 
     progressive massive fibrosis);
       (iii) pathological demonstration of classic silicotic 
     nodules exceeding 1 centimeter in diameter as set forth in 
     112 Archives of Pathology & Laboratory Medicine 673-720 
     (1988);
       (iv) progressive massive fibrosis radiologically 
     established by large opacities greater than 1 centimeter in 
     diameter; or
       (v) acute silicosis.
       (D) If the claimant is asserting a claim for silicosis, 
     evidence verifying there has been a sufficient latency period 
     for the applicable type of silicosis.
       (E) A determination by the diagnosing, qualified physician, 
     on the basis of a personal medical examination and pulmonary 
     function testing of the exposed person, or if the exposed 
     person is deceased, based upon the medical records of the 
     deceased, that the claimant has, or if deceased, had a 
     permanent respiratory impairment rating of at least Class 2 
     as defined by and evaluated pursuant to the AMA's Guides to 
     the Evaluation of Permanent Impairment.
       (F) Verification that the diagnosing, qualified physician 
     has concluded that the exposed person's impairment was not 
     more probably the result of causes other than silica exposure 
     as revealed by the employment, medical, and smoking history 
     of the exposed person. Any verification that includes a 
     conclusion which states that the medical findings and 
     impairment are consistent or compatible with silica exposure 
     or silica-related disease does not meet the requirements of 
     this subsection.
       (G) Copies of--
       (i) the B-reading, pulmonary function tests (including 
     printouts of the flow volume loops, volume time curves, DLCO 
     graphs, and data for all trials, and all other elements 
     required to demonstrate compliance with the equipment, 
     quality, interpretation, and reporting standards established 
     in this Act);
       (ii) lung volume tests;
       (iii) reports of x-ray examinations and diagnostic imaging 
     of the chest;
       (iv) pathology reports; and
       (v) any other testing reviewed by the diagnosing, qualified 
     physician in reaching the physician's conclusions.
       (h) Prima Facie Evidence of Physical Impairment for Silica-
     Related Cancer.--
       (1) In general.--No person shall bring or maintain a silica 
     claim related to an alleged silica-related cancer in the 
     absence of a prima facie showing of a primary cancer for 
     which exposure to the defendant's silica is a substantial 
     contributing factor.
       (2) Prima facie showing.--A prima facie showing under 
     paragraph (1) shall be made as to each defendant and include 
     a detailed narrative medical report and diagnosis by a 
     qualified physician that includes:
       (A) Evidence verifying that the diagnosing, qualified 
     physician has taken a detailed occupational and exposure 
     history from the exposed person or, if that person is 
     deceased, from a person who is knowledgeable about the 
     exposures that form the basis for the claim, including 
     identification of--
       (i) all of the exposed person's places of employment and 
     exposure to airborne contaminants (including silica and other 
     disease-causing dusts, mists, fumes, and airborne 
     contaminants) that can cause pulmonary impairment; and
       (ii) the nature, duration, and level of each such exposure.
       (B) Evidence verifying that the diagnosing, qualified 
     physician has taken a detailed

[[Page S1191]]

     medical and smoking history from the exposed person (or if 
     the exposed person is deceased, from the person most 
     knowledgeable of that history), including a thorough review 
     of--
       (i) the exposed person's past and present medical problems; 
     and
       (ii) the most probable cause of each such medical problem.
       (C) A determination by the diagnosing, qualified physician 
     that the claimant has--
       (i) an ILO quality 1 chest x-ray (or a quality 2 chest x-
     ray if the exposed person is deceased and a quality 1 chest 
     x-ray does not exist) read by a certified B-reader as 
     showing, according to the ILO scale, bilateral predominantly 
     nodular opacities (p, q, or r) occurring primarily in the 
     upper lung fields, graded 1/0 or higher;
       (ii) an ILO quality 1 chest X-ray (or a quality 2 chest X-
     ray if the exposed person is deceased and a quality 1 chest 
     X-ray does not exist) read by a certified B-reader as 
     showing, according to the ILO scale, A, B, or C sized 
     opacities representing complicated silicosis (also known as 
     progressive massive fibrosis); or
       (iii) a pathological demonstration of classic silicotic 
     nodules exceeding 1 centimeter in diameter as set forth in 
     112 Archives of Pathology & Laboratory Medicine 673-720 
     (1988).
       (D) Evidence sufficient to demonstrate--
       (i) that at least 10 years have elapsed since the exposed 
     person's first exposure to silica; and
       (ii) the date of any such diagnosis of the cancer.
       (E) Verification that the diagnosing, qualified physician 
     has concluded that the exposed person's impairment was not 
     more probably the result of causes other than silica exposure 
     as revealed by the employment, medical, and smoking history 
     of the exposed person. Any verification that includes a 
     conclusion which states that the medical findings and 
     impairment are consistent or compatible with silica exposure 
     or silica-related disease does not meet the requirements of 
     this subsection.
       (F) Copies of--
       (i) the B-reading, pulmonary function tests (including 
     printouts of the flow volume loops, volume time curves, DLCO 
     graphs, and data for all trials, and all other elements 
     required to demonstrate compliance with the equipment, 
     quality, interpretation, and reporting standards established 
     in this Act);
       (ii) lung volume tests;
       (iii) reports of x-ray examinations and diagnostic imaging 
     of the chest;
       (iv) pathology reports; and
       (v) any other testing reviewed by the diagnosing, qualified 
     physician in reaching the physician's conclusions.
       (i) Compliance With Technical Standards.--Evidence relating 
     to physical impairment under this section, including 
     pulmonary function testing and diffusing studies--
       (1) shall comply with the technical recommendations for 
     examinations, testing procedures, quality assurance, quality 
     control, and equipment in the AMA's Guides to the Evaluation 
     of Permanent Impairment, the most current version of the 
     Official Statements of the American Thoracic Society 
     regarding lung function testing, including general 
     considerations for lung function testing, standardization of 
     spirometry, standardization of the measurement of lung 
     volumes, standardization of the single-breath determination 
     of carbon monoxide uptake in the lung, and interpretative 
     strategies for lung testing in effect at the time of the 
     performance of any examination or test on the exposed person 
     required by this Act;
       (2) may not be based on testing or examinations that 
     violate any law, regulation, licensing requirement, or 
     medical code of practice of any State in which the 
     examination, test, or screening was conducted; and
       (3) may not be obtained under the condition that a claimant 
     retains the legal services of an attorney or law firm 
     sponsoring the examination, test, or screening.

     SEC. 5. PROCEDURES.

       (a) No Presumption at Trial.--Evidence relating to the 
     prima facie showings required under section 4 shall not--
       (1) create any presumption that a claimant has an asbestos 
     or silica-related injury or impairment; and
       (2) be conclusive as to the liability of any defendant.
       (b) Admissibility of Evidence.--No evidence shall be 
     offered at a trial, and a jury shall not be informed of--
       (1) the granting or denial of a motion to dismiss an 
     asbestos or silica claim under the provisions of this Act; or
       (2) the provisions of section 4 with respect to what 
     constitutes a prima facie showing of asbestos or silica-
     related impairment.
       (c) Discovery.--Until such time as a trial court enters an 
     order determining that a claimant has established prima facie 
     evidence of impairment, no asbestos or silica claim shall be 
     subject to discovery, except discovery--
       (1) related to establishing or challenging such prima facie 
     evidence; or
       (2) by order of the trial court upon--
       (A) motion of 1 of the parties; and
       (B) for good cause shown.
       (d) Consolidation.--
       (1) At trial.--
       (A) In general.--A court may consolidate for trial any 
     number and type of asbestos or silica claims with the consent 
     of all the parties.
       (B) Absence of consent.--In the absence of any consent 
     under subparagraph (A), a court may consolidate for trial 
     only asbestos claims or silica claims relating to the same 
     exposed person and members of the household of such exposed 
     person.
       (2) Class actions.--No class action or any other form of 
     mass aggregation claim filing relating to more than 1 exposed 
     person, except claims relating to the exposed person and 
     members of the household of such exposed person, shall be 
     permitted for asbestos or silica claims.
       (3) At discovery.--Any decision by a court to consolidate 
     claims under paragraph (1) shall not preclude consolidation 
     of asbestos or silica claim cases by a court order for 
     pretrial or discovery purposes.
       (e) Forum Non Conveniens.--
       (1) In general.--Any asbestos or silica claim filed on or 
     after the date of enactment of this Act, if the court in 
     which such claim is pending, on written motion of a party, 
     finds that in the interest of justice and for the convenience 
     of the parties a claim or action to which this Act applies 
     would be more properly heard in a forum outside the State, 
     district, or division in which such claim was filed, the 
     court shall--
       (A) decline to exercise jurisdiction under the doctrine of 
     forum non conveniens; and
       (B) shall stay or dismiss such claim.
       (2) Considerations.--In determining whether to grant a 
     motion to stay or dismiss a claim under paragraph (1), a 
     court shall consider whether--
       (A) an alternate forum exists in which such claim or action 
     may be tried;
       (B) the alternate forum provides an adequate remedy;
       (C) maintenance of such claim in the court of the State in 
     which the claim was filed would work a substantial injustice 
     to the moving party;
       (D) the alternate forum, as a result of the submission of 
     the parties or otherwise, can exercise jurisdiction over all 
     the defendants properly joined to such claim;
       (E) the balance of the private interests of the parties and 
     the public interest of the State in which such claim was 
     filed predominate in favor of such claim being brought in an 
     alternate forum; and
       (F) the stay or dismissal would not result in unreasonable 
     duplication or proliferation of litigation.
       (3) Waiver of statute of limitations defense.--A trial 
     court may not abate or dismiss a claim under this subsection 
     until a defendant files with the court, or with the clerk of 
     the court, a written stipulation that, with respect to a new 
     action on such claim commenced by the plaintiff, the 
     defendant waives the right to assert a statute of limitations 
     defense in all other States, districts, or divisions in which 
     such claim was not barred by limitations at the time such 
     claim was filed in the State where such claim was originally 
     filed as necessary to effect a tolling of the limitations 
     periods in those States --
       (A) beginning on the date such claim was originally filed; 
     and
       (B) ending on the date--
       (i) such claim is dismissed; or
       (ii) an abatement period of 1 year ends.
       (4) Court duties.--A court may not abate or dismiss a claim 
     under paragraph (3) until a defendant files with the court, 
     or with the clerk of the court, a written stipulation that, 
     with respect to a new action on such claim commenced by the 
     plaintiff in another State, district, or division, that the 
     claimant and the defendant may--
       (A) rely on responses to discovery already provided under 
     the rules of civil procedure of the State, district, or 
     division in which such claim was originally filed; and
       (B) rely on any additional discovery that may be conducted 
     under the rules of civil procedure in another State, 
     district, or division.
       (f) Venue.--
       (1) In general.--An asbestos or silica claim filed after 
     the date of enactment of this Act may be filed only in the 
     county of the State or the district or division of the United 
     States where--
       (A) the claimant resided for a period of at least 180 
     consecutive days immediately prior to filing suit; or
       (B) the exposed person had the most substantial cumulative 
     exposure to asbestos for an asbestos claim or to silica for a 
     silica claim, and that such exposure was a substantial 
     contributing factor to the asbestos or silica related 
     impairment on which such claim is based.
       (2) Improper venue.--With respect to asbestos or silica 
     claims pending as of the date of enactment of this Act, and 
     in which the trial, or any new trial or retrial following 
     motion, appeal, or otherwise, has not commenced with 
     presentation of evidence to the trier of fact as of the date 
     of enactment of this Act, any claim as to which venue would 
     not have been proper if the claim originally had been brought 
     in accordance with paragraph (1) shall, not later than 90 
     days after the date of enactment of this Act, be transferred 
     to the court of general civil jurisdiction in the county, 
     district, or division of the State in which the action is 
     pending in which either--
       (A) the claimant was domiciled at the time the asbestos or 
     silica claim originally was filed; or
       (B) the exposed person had the most substantial cumulative 
     exposure to asbestos for an asbestos claim or to silica for a 
     silica claim, and that such exposure was a substantial 
     contributing factor to the asbestos or

[[Page S1192]]

     silica related impairment on which the claim is based.
       (3) Removal.--
       (A) In general.--If a State court refuses or fails to apply 
     the provisions of this Act, any party in a civil action for 
     an asbestos claim may remove such action to a district court 
     of the United States in accordance with chapter 89 of title 
     28, United States Code.
       (B) Jurisdiction over removed actions.--The district courts 
     of the United States shall have jurisdiction of all civil 
     actions removed under this paragraph, without regard to the 
     amount in controversy and without regard to the citizenship 
     or residence of the parties.
       (C) Removal by any defendant.--A civil action may be 
     removed to the district court of the United States under this 
     paragraph by any defendant without the consent of all 
     defendants.
       (D) Remand.--A district court of the United States shall 
     remand any civil action removed solely under this paragraph, 
     unless the court finds that--
       (i) the State court failed to comply with procedures 
     prescribed by law; or
       (ii) the failure to dismiss by the State court lacked 
     substantial support in the record before the State court.
       (E) Limitation.--Civil actions in State court subject to 
     this Act may not be removed to any district court of the 
     United States unless such removal is otherwise proper without 
     regard to the provisions of this Act or is removed under this 
     paragraph.
       (g) Preemption.--
       (1) In general.--This Act shall govern all asbestos and 
     silica claims filed in Federal or State courts on or after 
     the effective date of this Act, or which are pending in 
     Federal or State courts on the effective date of this Act and 
     in which the trial, or any new trial or retrial following 
     motion, appeal or otherwise, has not commenced with 
     presentation of evidence to the trier of fact as of the 
     effective date of this Act, except for enforcement of claims 
     for which a final judgment has been duly entered by a court 
     and that is no longer subject to any appeal or judicial 
     review on the effective date of this Act.
       (2) Greater limitations by states.--Nothing in this Act 
     shall limit or preempt any State law or precedent having the 
     effect of imposing additional or greater limits or 
     restrictions on the assertion or prosecution of an asbestos 
     or silica claim.

     SEC. 6. STATUTE OF LIMITATIONS; 2-DISEASE RULE.

       (a) Statute of Limitations.--
       (1) In general.--An asbestos or silica claim not barred in 
     a State as of the date of enactment of this Act, a claimant's 
     cause of action shall not accrue, nor shall the running of 
     limitations commence, prior to the earlier of the date--
       (A) on which an exposed person received a medical diagnosis 
     of an asbestos-related impairment or silica-related 
     impairment;
       (B) on which an exposed person discovered facts that would 
     have led a reasonable person to obtain a medical diagnosis 
     with respect to the existence of an asbestos-related 
     impairment or silica-related impairment; or
       (C) of death of the exposed person having an asbestos-
     related or silica-related impairment.
       (2) Rule of construction.--Nothing in this section shall be 
     construed to revive or extend limitations with respect to any 
     claim for asbestos-related impairment or silica-related 
     impairment that was otherwise time-barred as a matter of 
     applicable State law as of the date of enactment of this Act.
       (3) No effect on settlement agreements.--Nothing in this 
     section shall be construed so as to adversely affect, impair, 
     limit, modify, or nullify any settlement agreement with 
     respect to an asbestos or silica claim entered into before 
     the date of enactment of this Act.
       (b) 2-Disease Rule; Distinct Claims.--
       (1) In general.--An asbestos or silica claim arising out of 
     a non-malignant condition shall be a distinct cause of 
     action, wholly separate from a claim for an asbestos-related 
     or silica-related cancer.
       (2) No damages for fear.--No damages shall be awarded for 
     fear or increased risk of future disease in any civil action 
     asserting an asbestos or silica claim.

     SEC. 7. EXPERTS.

       (a) In General.--A person who holds a valid medical license 
     in good standing in a State, but who is not licensed to 
     practice medicine in that State, and who testifies, whether 
     by deposition, affidavit, live, or otherwise, as a medical 
     expert witness on behalf of any party in an asbestos or 
     silica claim is deemed to have a temporary license to 
     practice medicine in the State in which the claim is pending 
     solely for the purpose of providing such testimony and is 
     subject to that extent to the authority of the medical 
     licensing board or agency of that State.
       (b) Penalty for False Testimony.--If a physician renders 
     expert medical testimony that is false, intentionally 
     misleading or deceptive, or that intentionally misstates the 
     relevant applicable standard of care, the medical licensing 
     board or agency of the State in which the claim is pending 
     may take such action as is permitted under the laws and 
     regulations of that State governing the conduct of 
     physicians.
       (c) Rule of Construction.--This section shall not be 
     construed to permit an out of State physician to practice 
     medicine in any other State other than as provided in this 
     section.

     SEC. 8. SEVERABILITY.

       If any provision of this Act, or the application of such 
     provision to any person or circumstance is held to be 
     unconstitutional, the remainder of this Act, and the 
     application of the provisions of such to any person or 
     circumstance shall not be affected thereby.

     SEC. 9. MISCELLANEOUS PROVISIONS.

       (a) Construction With Other Laws.--This Act shall not be 
     construed to--
       (1) affect the scope or operation of any workers' 
     compensation law or veterans' benefit program;
       (2) affect the exclusive remedy or subrogation provisions 
     of any such law; or
       (3) authorize any lawsuit which is barred by any such 
     provision of law.
       (b) Constitutional Authority.--The constitutional authority 
     for this Act is contained in Article I, section 8, clause 3 
     and Article III, section 1 of the Constitution of the United 
     States.

     SEC. 10. EFFECTIVE DATE.

       (a) In General.--This Act applies to all asbestos or silica 
     claims filed on or after the date of enactment of this Act.
       (b) Pending Proceedings.--This Act also applies to any 
     pending asbestos or silica claims in which a trial has not 
     commenced as of the date of enactment of this Act.
                                 ______
                                 
  SA 2789. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 171, between lines 17 and 18, insert the following 
     and re-number accordingly:
       (4) Limitation on payments by defendant participants.--
       (A) In general.--Under expedited procedures established by 
     the Administrator, any defendant participant may apply for a 
     limitation on its annual payment obligation to the Fund by 
     showing that it qualifies under subparagraph (C). The 
     Administrator shall promptly grant that application if the 
     requirements under subparagraph (C) are satisfied.
       (B) Stay of payment.--A defendant participant who applies 
     for a limitation on its annual payment obligation to the Fund 
     under subparagraph (A) shall have the payment required under 
     subsection (i)(1)(A)(iv) stayed until the Administrator has 
     made a determination with respect to the application of that 
     defendant participant.
       (C) Application for limitation.--A defendant participant 
     may apply under subparagraph (A) for a limit on its annual 
     payment obligation to the Fund if that defendant 
     participant--
       (i) is included in Tiers II, III, IV, V, or VI under 
     section 202; and
       (ii) has prior asbestos expenditures less than $200,000,000 
     and has revenues as determined under section 203 that are 
     less than $10,000,000,000.
       (D) Limitation.--
       (i) In general.--A defendant participant that qualifies for 
     a limitation under this paragraph may apply for only 1 of the 
     limits under subclause (I), (II), or (III) of clause (ii). A 
     defendant participant may not change its application once the 
     application has been approved by the Administrator.
       (ii) Application for 1 limitation.--Subject to clause (i), 
     a defendant participant may apply for a limit of an amount 
     equal to--

       (I) 125 percent of the arithmetical average for fiscal 
     years 1998 through 2002 of the annual prior asbestos 
     expenditures of that defendant participant;
       (II) 150 percent of the arithmetical average for fiscal 
     years 1998 through 2002 of the annual prior asbestos 
     expenditures of that defendant participant, excluding--

       (aa) the amount of any payments by insurance carriers for 
     the benefit of that defendant participant or on behalf of 
     that defendant participant; and
       (bb) any reimbursements of the amounts actually paid by 
     that defendant participant with respect to prior asbestos 
     expenditures for fiscal years 1998 through 2002, regardless 
     of when such reimbursements were actually paid; or

       (III) 1.67024 percent of the revenues for the most recent 
     fiscal year ending on or prior to December 31, 2002, of the 
     affiliated group to which that defendant participant belongs.

       (E) Judicial review.--A defendant participant is entitled 
     to judicial review under section 303 of a denial of an 
     application under this paragraph. During the pendency of that 
     review, section 223(a) shall not apply to that defendant 
     participant. Without regard to section 305(a), the reviewing 
     court may, in its discretion, provide such interlocutory 
     relief to the defendant participant as may be just.
       (F) Applicability of the guarantee surcharge.--A defendant 
     participant whose application under this paragraph is 
     approved by the Administrator, shall not be exempt from the 
     guaranteed payment surcharge established under subsection 
     (l), unless otherwise provided in this Act.
       (G) Minimum payment.--Notwithstanding any other provision 
     of this paragraph, a defendant participant that is granted a 
     limitation by the Administrator shall pay not less than 5 
     percent of the amount the participant is scheduled to pay 
     under section 202.
       On page 182, line 15, strike ``(5)'' and insert ``(6)''.

[[Page S1193]]

       On page 184, line 9, strike ``(6)'' and insert ``(7)''.
                                 ______
                                 
  SA 2790. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 171, strike all after line 5 until ``(5) Bankruptcy 
     Relief'' and insert the following and renumber accordingly:
       (c) Limitation.--
       (1) In general.--Under expedited procedures established by 
     the Administrator, any defendant participant may apply for a 
     limitation on its annual payment obligation to the Fund by 
     showing that it qualifies under subparagraph (3), and the 
     Administrator shall promptly grant such application if the 
     standards in subparagraph (3) are satisfied.
       (2) Stay of payment.--A defendant participant who applies 
     for a limitation on its annual payment obligation to the Fund 
     under subparagraph (1) shall have the payment required under 
     subsection (i)(l)(A)(iv) stayed until the Administrator has 
     made a determination with respect to the application of such 
     defendant participant.
       (3) Application for limitation.--A defendant participant 
     may apply under subparagraph (A) for a limit on its annual 
     payment obligation to the Fund if:
       (A) it is included in Tiers II, Ill, IV, V, or VI under 
     section 202; and
       (B) its prior asbestos expenditures are less than $200 
     million and its revenues as defined in this section are less 
     than $10 Billion.
       (4) Limitation.--Such qualifying defendant participant may 
     apply for the limit set forth in either clause (A), (B) or 
     (C), provided that it may apply only under one such clause 
     and may not change its application once the application has 
     been approved by the Administrator. A defendant participant 
     qualifying under this subparagraph may apply for a limit on 
     its annual payment obligation to the Fund to an amount equal 
     to--
       (A) 125 percent of the arithmetical average for fiscal 
     years 1998 through 2002 of such defendant participant's 
     annual prior asbestos expenditures; or
       (B) 150 percent of the arithmetical average for fiscal 
     years 1998 through 2002 of such defendant participant's 
     annual prior asbestos expenditures, excluding (I) the amount 
     of any payments by insurance carriers for the benefit of such 
     defendant participant or on behalf of such defendant 
     participant, and (II) any reimbursements of the amounts 
     actually paid by such defendant participant with respect to 
     prior asbestos expenditures for fiscal years 1998 through 
     2002, regardless of when such reimbursements were actually 
     paid; or
       (C) 1.67024 percent of the revenues for the most recent 
     fiscal year ending on or prior to December 31, 2002, of the 
     affiliated group to which such defendant participant belongs.
       (5) Judicial review.--A defendant participant who is 
     aggrieved by the denial by the Administrator of its 
     application under this paragraph is entitled to judicial 
     review under section 303, and during the pendency of such 
     review, section 223(a) shall not apply to that defendant 
     participant. Without regard to section 305(a), the reviewing 
     court may, in its discretion, provide such interlocutory 
     relief to the defendant participant as may be just.
       (6) Applicability of the guarantee surcharge.--A defendant 
     participant whose application for a limitation on its annual 
     payment obligation to the Fund under subparagraph (A) is 
     approved by the Administrator, shall not be exempt from the 
     guaranteed payment surcharge established under subsection (1) 
     unless otherwise provided in this Act.
       (7) Minimum payment.--Notwithstanding the limitations 
     provided in this subsection, a defendant participant that is 
     granted a limitation by the Administrator shall pay no less 
     than 5 percent of the amount the participant is scheduled to 
     pay under section 202.
       (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, 
     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) General.--Any defendant participant in any tier may 
     apply for an adjustment under this paragraph at any time 
     during the period in which a payment obligation to the Fund 
     remains outstanding and may qualify for such an adjustment by 
     demonstrating to the satisfaction of the Administrator that 
     the amount of its payment obligation would materially and 
     adversely affect the defendant participant's ability to 
     continue its business and to pay or satisfy its debts 
     generally as and when they come due. Such an adjustment shall 
     be in an amount that in the judgment of the Administrator is 
     reasonably necessary to prevent such material and adverse 
     effect on the defendant participant's ability to continue its 
     business and to pay or satisfy its debts generally as and 
     when they come due.
       (B) Factors to consider.-In determining whether to make an 
     adjustment under subparagraph (A) and the amount thereof, the 
     Administrator shall consider--
       (1) the financial situation of the defendant participant 
     and its affiliated group as shown in historical audited 
     financial statements, including income statement, balance 
     sheet, and statement of cash flow, for the three fiscal years 
     ending immediately prior to the application and projected 
     financial statements for the three fiscal years following the 
     application;
       (2) an analysis of capital spending and fixed charge 
     coverage on a historical basis for the three fiscal years 
     immediately preceding a defendant participant's application 
     and for the three fiscal years following the application;
       (3) any payments or transfers of property made, or 
     obligations incurred, within the preceding 6 years by the 
     defendant participant to or for the benefit of any insider as 
     defined under section 101(31) of title 11 of the United 
     States Code or any affiliate as defined under section 101(2) 
     of title 11 of the United States Code;
       (4) any prior extraordinary transactions within the 
     preceding 6 years involving the defendant participant, 
     including without limitation payments of extraordinary 
     salaries, bonuses, or dividends;
       (5) the defendant participant's ability to satisfy its 
     payment obligations to the Fund by borrowing or financing 
     with equity capital, or through issuance of securities of the 
     defendant participant or its affiliated group to the Fund;
       (6) the defendant participant's ability to delay 
     discretionary capital spending; and
       (7) any other factor that the Administrator considers 
     relevant.
       (C) Term.--A financial hardship adjustment under this 
     paragraph shall have a term of 5 years unless the 
     Administrator determines at the time the adjustment is made 
     that a shorter or longer period is appropriate in the light 
     of the financial condition of the defendant participant and 
     its affiliated group and other relevant factors, provided 
     that a financial hardship adjustment under this paragraph 
     shall terminate automatically in the event that the defendant 
     participant holding the adjustment files a petition under 
     title 11, United States Code.
       (D) Renewal.--A defendant participant may renew a hardship 
     adjustment upon expiration by demonstrating that it remains 
     justified. Such renewed hardship adjustments shall have a 
     term of 5 years unless the Administrator determines at the 
     time of the renewed adjustment that a shorter or longer 
     period is appropriate in the light of the financial condition 
     of the defendant participant and its affiliated group and 
     other relevant factors, provided that a renewed financial 
     hardship adjustment under this paragraph shall terminate 
     automatically in the event that the defendant participant 
     holding the adjustment files a petition under title 11, 
     United States Code.
       (E) Procedure.--
       (1) The Administrator shall prescribe the information to be 
     submitted in applications for adjustments under this 
     paragraph.
       (2) All audited financial information required under this 
     paragraph shall be as reported by the defendant participant 
     in its 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.). Any defendant participant that 
     does not file reports with the Securities and Exchange 
     Commission or which does not have audited financial 
     statements shall submit financial statements prepared 
     pursuant to generally accepted accounting principles. The 
     chairman, chief executive officer, and chief financial 
     officer of the defendant participant shall certify under 
     penalty of law the completeness and accuracy of the financial 
     statements provided under this sub-paragraph.
       (3) The chairman, chief executive officer, and chief 
     financial officer of the defendant participant shall certify 
     that any projected information and analyses submitted to the 
     Administrator were made in good faith and are reasonable 
     and attainable.''
       (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 exception 25 ally 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;
       (II) when measured against the likely cost of past and 
     potential future claims in the absence of this Act;
       (III) when compared to the median payment rate for all 
     defendant participants in the same tier; or
       (IV) 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

[[Page S1194]]

     payment to a plaintiff by or on behalf of that defendant;
       (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, and 
     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;
       (iii) shall be granted a two-tier adjustment reducing the 
     defendant participant's payment obligation based on inequity 
     by demonstrating that not less than 95 percent of such 
     participant's prior asbestos expenditures arose from asbestos 
     claims based on successor liability arising from a merger to 
     which the participant or its predecessor was a party that 
     occurred at least 30 years before the date of enactment of 
     this Act, and that such prior asbestos expenditures exceed 
     the inflation-adjusted value of the assets of the company 
     from which such liability was derived in such merger, and 
     upon such demonstration the Administrator shall grant such 
     adjustment for the life of the Fund and amounts paid by such 
     defendant participant prior to such adjustment in excess of 
     its adjusted payment obligation under this clause shall be 
     credited against next succeeding required payment 
     obligations; and
       (iv) may, subject to the discretion of the Administrator, 
     be exempt from any payment obligation if such defendant 
     participant establishes with the Administrator that--
       (I) such participant has satisfied all past claims; and
       (II) there is no reasonable likelihood in the absence of 
     this Act of any future claims with costs for which the 
     defendant participant might be responsible.
       (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 16 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), 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 10 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 be limited.
                                 ______
                                 
  SA 2791. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       Strike all after ``SECTION 1. SHORT TITLE;'' in the 
     amendment and insert the following:
     This Act may be cited as the ``Asbestos and Silica Claims 
     Priorities Act''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds the following:
       (1) Asbestos is a mineral that was widely used before the 
     mid-1970s for insulation, fireproofing, and other purposes.
       (2) Many American workers were exposed to asbestos, 
     especially during the Second World War.
       (3) Long-term exposure to asbestos has been associated with 
     mesothelioma and lung cancer, as well as with such non-
     malignant conditions as asbestosis, pleural plaques, and 
     diffuse pleural thickening.
       (4) Although the use of asbestos has dramatically declined 
     since 1980 and workplace exposures have been regulated since 
     1971 by the Occupational Safety and Health Administration, 
     the diseases caused by asbestos often have long latency 
     periods and past exposures will continue to result in 
     significant claims well into the future.
       (5) Asbestos related claims, driven largely by unimpaired 
     claimants, have flooded our courts such that the United 
     States Supreme Court has characterized the situation as ``an 
     elephantine mass'' that ``calls for national legislation'' 
     (Ortiz v. Fibreboard Corporation, 119 S. Ct. 2295, 2302 
     (1999).
       (6) The American Bar Association supports enactment of 
     Federal legislation that would allow persons alleging non-
     malignant asbestos-related disease claims to file a cause of 
     action in Federal or State court only if those persons meet 
     the medical criteria in the ``ABA Standard for Non-Malignant 
     Asbestos-Related Disease Claims'' and toll all applicable 
     statutes of limitations until such time as the medical 
     criteria in such standard are met.
       (7) Reports indicate that up to 90 percent of asbestos 
     claims are filed by individuals who allege that they have 
     been exposed to asbestos, but who suffer no demonstrable 
     asbestos-related impairment. Lawyer-sponsored x-ray 
     screenings of workers at occupational locations are used to 
     amass large numbers of claimants, the vast majority of whom 
     are unimpaired.
       (8) The costs of compensating unimpaired claimants and 
     litigating their claims jeopardizes the ability of defendants 
     to compensate people with cancer and other serious diseases, 
     threatens the savings, retirement benefits, and jobs of 
     current and retired employees, and adversely affects the 
     communities in which the defendants operate.
       (9) More than 73 companies have declared bankruptcy due to 
     the burden of asbestos litigation. The rate of asbestos-
     driven bankruptcies is accelerating. Between 2000 and 2004, 
     there were more asbestos-related bankruptcy filings than in 
     either of the prior 2 decades.
       (10) Bankruptcies have led plaintiffs and their lawyers to 
     expand their search for solvent peripheral defendants. The 
     number of asbestos defendants now includes over 8,500 
     companies, affecting many small and medium size companies and 
     industries that span 85 percent of the United States economy.
       (11) Efforts to address asbestos litigation may augment 
     silica-related filings.
       (12) Silica is a naturally occurring mineral and is the 
     second most common constituent of the earth's crust. 
     Crystalline silica in the form of quartz is present in sand, 
     gravel, soil, and rocks.
       (13) Silica-related illness, including silicosis can 
     develop from the inhalation of respirable silica dust. 
     Silicosis was widely recognized as an occupational disease 
     many years ago.
       (14) Silica claims, like asbestos claims, often involve 
     individuals with no demonstrable impairment. Claimants 
     frequently are identified through the use of interstate, for-
     profit, screening companies.
       (15) Silica screening processes have been found subject to 
     substantial abuse and potential fraud in Federal silica 
     litigation (In re Silica Prods. Liab. Litig. (MDL No. 1553), 
     398 F. Supp. 2d 563 (S.D. Tex. 2005)) and it therefore is 
     necessary to address silica legislation to preempt an 
     asbestos-like litigation crisis.
       (16) Concerns about statutes of limitations may prompt 
     unimpaired asbestos and silica claimants to bring lawsuits 
     prematurely to protect against losing their ability to assert 
     a claim in the future should they develop an impairing 
     condition.
       (17) Sound public policy requires that the claims of 
     persons with no present physical impairment from asbestos or 
     silica exposure, be deferred to give priority to physically 
     impaired claimants, and to safeguard the jobs, benefits, and 
     savings of workers in affected companies.
       (18) Claimant consolidations, joinders, and similar 
     procedures used by some courts to deal with the mass of 
     asbestos and silica cases can--
       (A) undermine the appropriate functioning of the court 
     system;
       (B) deny due process to plaintiffs and defendants; and
       (C) further encourage the filing of thousands of cases by 
     exposed persons who are not sick and likely will never 
     develop an impairing condition caused by exposure to asbestos 
     or silica.
       (19) Several states have enacted legislation to prioritize 
     asbestos and silica claims that serve as a model for national 
     reform including Texas, Ohio, Florida, and Georgia.
       (20) Asbestos litigation, if left unchecked by reasonable 
     congressional intervention, will--
       (A) continue to inhibit the national economy and run 
     counter to plans to stimulate economic growth and the 
     creation of jobs;
       (B) threaten the savings, retirement benefits, and 
     employment of defendant's current and retired employees;
       (C) affect adversely the communities in which these 
     defendants operate; and
       (D) impair interstate commerce and national initiatives.
       (21) The public interest and the interest of interstate 
     commerce requires deferring the claims of exposed persons who 
     are not sick in order to--
       (A) preserve, now and for the future, defendants' ability 
     to compensate people who develop cancer and other serious 
     asbestos-related injuries; and

[[Page S1195]]

       (B) safeguard the jobs, benefits, and savings of American 
     workers and the well-being of the national economy.
       (b) Purposes.--The purposes of this Act are to--
       (1) give priority to current claimants who can demonstrate 
     an asbestos-related or silica-related impairment based on 
     reasonable, objective medical criteria;
       (2) toll the running of statutes of limitations for persons 
     who have been exposed to asbestos or to silica, but who have 
     no present asbestos-related or silica-related impairment; and
       (3) enhance the ability of the courts to supervise and 
     control asbestos and silica litigation.

     SEC. 3. DEFINITIONS.

       In this Act, the following definitions shall apply:
       (1) AMA guides to the evaluation of permanent impairment.--
     The term ``AMA Guides to the Evaluation of Permanent 
     Impairment'' means the most current version of the American 
     Medical Association's Guides to the Evaluation of Permanent 
     Impairment in effect at the time of the performance of any 
     examination or test on the exposed person required by this 
     Act.
       (2) Asbestos.--The term ``asbestos'' means--
       (A) chrysotile;
       (B) amosite;
       (C) crocidolite
       (D) tremolite asbestos;
       (E) anthophyllite asbestos;
       (F) actinolite asbestos;
       (G) winchite;
       (H) richterite;
       (I) asbestiform amphibole minerals; and
       (J) any of the minerals described in subparagraphs (A) 
     through (I) that have been chemically treated or altered, 
     including all minerals defined as asbestos under section 1910 
     of title 29, Code of Federal Regulations in effect at the 
     time an asbestos claim is filed.
       (3) Asbestos claim.--The term ``asbestos claim''--
       (A) means any claim for damages, losses, indemnification, 
     contribution, or other relief of whatever nature arising out 
     of, based on, or related to the alleged health effects 
     associated with the inhalation or ingestion of asbestos, 
     including--
       (i) loss of consortium;
       (ii) personal injury or death;
       (iii) mental or emotional injury;
       (iv) risk or fear of disease or other injury;
       (v) the costs of medical monitoring or surveillance, to the 
     extent such claims are recognized under State law; or
       (vi) any claim made by, or on behalf of, any person exposed 
     to asbestos, or a representative, spouse, parent, child, or 
     other relative of the exposed person; and
       (B) does not include a claim for compensatory benefits 
     pursuant to a workers' compensation law or a veterans' 
     benefits program.
       (4) Asbestosis.--The term ``asbestosis'' means bilateral 
     diffuse interstitial fibrosis of the lungs caused by 
     inhalation of asbestos.
       (5) Board-certified internist.--The term ``Board-certified 
     internist'' means a qualified physician--
       (A) who is certified by the American Board of Internal 
     Medicine or the American Osteopathic Board of Internal 
     Medicine; and
       (B) whose certification was current at the time of--
       (i) the performance of any examination; and
       (ii) rendition of any report required under this Act.
       (6) Board-certified occupational medicine specialist.--The 
     term ``Board-certified occupational medicine specialist'' 
     means a physician--
       (A) who is certified in the subspecialty of occupational 
     medicine by the American Board of Preventive Medicine or the 
     American Osteopathic Board of Preventive Medicine; and
       (B) whose certification was current at the time of--
       (i) the performance of any examination; and
       (ii) rendition of any report required under this Act.
       (7) Board-certified pathologist.--The term ``Board-
     certified pathologist'' means a qualified physician--
       (A) who holds primary certification in anatomic pathology 
     or combined anatomic or clinical pathology from the American 
     Board of Pathology or the American Osteopathic Board of 
     Internal Medicine;
       (B) whose professional practice is principally in the field 
     of pathology and involves regular evaluation of pathology 
     materials obtained from surgical or post mortem specimens; 
     and
       (C) whose certification was current at the time of--
       (i) any tissue or slide examination; or
       (ii) rendition of any report required under this Act.
       (8) Board-certified pulmonologist.--The term ``Board-
     certified pulmonologist'' means a qualified physician--
       (A) who is certified in the subspecialty of pulmonary 
     medicine by the American Board of Internal Medicine or the 
     American Osteopathic Board of Internal Medicine; and
       (B) whose certification was current at the time of--
       (i) the performance of any examination; and
       (ii) rendition of any report required under this Act.
       (9) Certified b-reader.--The term ``Certified B-reader'' 
     means a person--
       (A) who has successfully passed the B-reader certification 
     examination for x-ray interpretation sponsored by the 
     National Institute for Occupational Safety and Health; and
       (B) whose certification was current at the time of any 
     readings required under this Act.
       (10) Chest x-rays.--The term ``chest x-rays'' means 
     radiographic films taken in accordance with all applicable 
     Federal and State standards and in the posterior-anterior 
     view.
       (11) Claimant.--
       (A) In general.--The term ``claimant'' means any party 
     asserting an asbestos or silica claim, including a--
       (i) plaintiff;
       (ii) counterclaimant;
       (iii) cross-claimant; or
       (iv) third-party plaintiff.
       (B) Claims on behalf of an estate.--If any claim described 
     in subparagraph (A) is brought through, or on behalf of, an 
     estate, the term claimant includes the executor, surviving 
     spouse, or any other descendant of the decedent.
       (C) Claims on behalf of a minor.--If any claim described in 
     subparagraph (A) is brought through, or on behalf of, a minor 
     or incompetent person, the term claimant includes the parent 
     or guardian of such minor.
       (12) DLCO.--The term ``DLCO'' means diffusing capacity of 
     the lung for carbon monoxide, which is the measurement of 
     carbon monoxide transfer from inspired gas to pulmonary 
     capillary blood.
       (13) Exposed person.--
       (A) In general.--The term ``exposed person'' means a person 
     whose claimed exposure to asbestos or silica is the basis for 
     an asbestos or silica claim.
       (B) Silica claims.--With respect to any claim for exposure 
     to silica, the term ``exposed person'' means a person whose 
     claimed exposure to silica is by means of the alleged 
     inhalation of respirable silica.
       (14) FEV-1.--The term ``FEV-1'' means forced expiratory 
     volume in the first second, which is the maximal volume of 
     air expelled in 1 second during performance of simple 
     spirometric tests.
       (15) FVC.--The term ``FVC'' means forced vital capacity, 
     which is the maximal volume of air expired with maximum 
     effort from a position of full inspiration.
       (16) ILO scale.--The term ``ILO scale'' means the system 
     for the classification of chest x-rays set forth in the most 
     current version of the International Labor Office's 
     Guidelines for the Use of ILO International Classification of 
     Radiographs of Pneumoconioses in effect at the time of the 
     performance of any examination or test on the exposed person 
     required by this Act.
       (17) Predicted lower limit of normal.--The term ``predicted 
     lower limit of normal'' means the calculated standard 
     convention lying at the fifth percentile, below the upper 95 
     percent of the reference population, based on age, height, 
     and gender, according to the recommendations of the American 
     Thoracic Society as referenced in the AMA's Guides to the 
     Evaluation of Permanent Impairment.
       (18) Qualified physician.--The term ``qualified physician'' 
     means a board-certified internist, occupational medicine 
     specialist, pathologist, or pulmonologist--
       (A) who is licensed to practice in any State;
       (B) who has personally conducted a physical examination of 
     the exposed person, or in the case of a board-certified 
     pathologist, has examined tissue samples or pathological 
     slides of the exposed person, or if the exposed person is 
     deceased, based upon a detailed review of the medical records 
     and existing tissue samples and pathological slides of the 
     deceased person;
       (C) who is treating or has treated the exposed person, and 
     has or had a doctor-patient relationship with the exposed 
     person at the time of the physical examination or, in the 
     case of a board-certified pathologist, has examined tissue 
     samples or pathological slides of the exposed person at the 
     request of such treating physician; and
       (D) whose diagnosing, examining, testing, screening or 
     treating of the exposed person was not, directly or 
     indirectly, premised upon, and did not require, the exposed 
     person or claimant to retain the legal services of any 
     attorney or law firm.
       (19) Silica.--The term ``silica'' a respirable crystalline 
     form of the naturally occurring mineral form of silicon 
     dioxide, including quartz, cristobalite, and tridymite.
       (20) Silica claim.--The term ``silica claim''--
       (A) means any claim for damages, losses, indemnification, 
     contribution, or other relief of whatever nature arising out 
     of, based on, or in any way related to the alleged health 
     effects associated with the inhalation of silica, including--
       (i) loss of consortium;
       (ii) personal injury or death;
       (iii) mental or emotional injury;
       (iv) risk or fear of disease or other injury;
       (v) the costs of medical monitoring or surveillance, to the 
     extent such claims are recognized under State law; or
       (vi) any claim made by, or on behalf of, any person exposed 
     to silica dust, or a representative, spouse, parent, child, 
     or other relative of the exposed person; and
       (B) does not include a claim for compensatory benefits 
     pursuant to the workers' compensation law or a veterans' 
     benefits program.

[[Page S1196]]

       (21) Silicosis.--The term ``silicosis'' means fibrosis of 
     the lung produced by inhalation of silica, including--
       (A) acute silicosis;
       (B) accelerated silicosis; and
       (C) chronic silicosis.
       (22) State.--The term ``State''--
       (A) means any State of the United States; and
       (B) includes--
       (i) the District of Columbia;
       (ii) Commonwealth of Puerto Rico;
       (iii) the Northern Mariana Islands;
       (iv) the Virgin Islands;
       (v) Guam;
       (vi) American Samoa; and
       (vii) any other territory or possession of the United 
     States, or any political subdivision of any of the locales 
     described under this paragraph.
       (23) Substantial contributing factor.--The term 
     ``substantial contributing factor''--
       (A) in the context of an asbestos claim, means that--
       (i) a claimant shall identify--

       (I) the specific asbestos product to which the exposed 
     person was exposed;
       (II) the location and duration of such exposure; and
       (III) the specific circumstances of such exposure;

       (ii) such exposure--

       (I) was more than incidental contact with the product and 
     location; and
       (II) took place on a regular basis over an extended period 
     of time in physical proximity to the exposed person;

       (iii) the exposed person inhaled respirable asbestos fibers 
     in sufficient quantities to be capable of causing harm; and
       (iv) a qualified physician has determined with a reasonable 
     degree of medical certainty that the impairment of the 
     exposed person would not have occurred but for the specific 
     asbestos exposure; and
       (B) in the context of a silica claim, means that--
       (i) a claimant shall identify--

       (I) the specific silica product to which the exposed person 
     was exposed;
       (II) the location and duration of such exposure; and
       (III) the specific circumstances of such exposure;

       (ii) such exposure--

       (I) was more than incidental contact with the product and 
     location; and
       (II) took place on a regular basis over an extended period 
     of time in physical proximity to the exposed person;

       (iii) the exposed person inhaled respirable silica 
     particles in sufficient quantities to be capable of causing 
     harm; and
       (iv) a qualified physician has determined with a reasonable 
     degree of medical certainty that the impairment of the 
     exposed person would not have occurred but for the specific 
     silica exposure.
       (24) Total lung capacity.--The term ``total lung capacity'' 
     means the volume of gas contained in the lungs at the end of 
     a maximal inspiration.
       (25) 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.
       (26) 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--
       (i) the Act of April 22, 1908 (45 U.S.C. 51 et seq.), 
     commonly known as the Employers' Liability Act, or damages 
     recovered by any employee in a liability action against an 
     employer; or
       (ii) any claim for exemplary or punitive damages by an 
     employee, estate, heir, representative, or any other person 
     or entity against the employer of an exposed person arising 
     out of, or related to, an asbestos-related injury or silica-
     related injury.

     SEC. 4. ELEMENTS OF PROOF FOR ASBESTOS OR SILICA CLAIMS.

       (a) Impairment Essential Element of Claim.--
       (1) In general.--It shall be an essential element to bring 
     or maintain an asbestos or silica claim, that an exposed 
     person suffer a physical impairment, of which asbestos or 
     silica was a substantial contributing factor to such 
     impairment.
       (2) Evidence as to each defendant.--Any requirement of a 
     prima facie showing under this section shall be made as to 
     each defendant against whom a claimant alleges an asbestos or 
     silica claim.
       (b) Preliminary Proceedings; Service of Prima Facie 
     Evidence of Impairment.--
       (1) Filing of report.--A claimant in any civil action 
     alleging an asbestos or silica claim shall file, together 
     with the complaint or other initial pleading, a written 
     report and supporting test results constituting prima facie 
     evidence of the exposed person's asbestos-related or silica-
     related impairment meeting the requirements of this section 
     as to each defendant.
       (2) Timing.--For any asbestos or silica claim pending on 
     the date of enactment of this Act, a claimant shall file the 
     written report and supporting test results described in 
     paragraph (1) not later than 180 days after such date or not 
     later than 60 days prior to the commencement of trial, 
     whichever occurs first.
       (3) Defendants right to challenge.--A defendant shall be 
     afforded a reasonable opportunity to challenge the adequacy 
     of any proffered prima facie evidence of impairment.
       (4) Dismissal.--A claim shall be dismissed without 
     prejudice upon a finding of failure to make the prima facie 
     showing required under this section.
       (c) New Claim Required Information.--
       (1) In general.--Any asbestos claim or silica claim filed 
     in a Federal or State court, on or after on the date of 
     enactment of this Act shall include a sworn information form 
     containing the following information:
       (A) The name, address, date of birth, social security 
     number, and marital status of the claimant.
       (B) The name, last address, date of birth, social security 
     number, and marital status of the exposed person.
       (C) If the claimant alleges exposure to asbestos or silica 
     through the testimony of another person or other than by 
     direct or bystander exposure to a product or products, the 
     name, address, date of birth, social security number, and 
     marital status, for each person by which claimant alleges 
     exposure (hereafter in this subsection referred to as the 
     ``index person'') and the relationship of the claimant to 
     each such person.
       (D) For each alleged exposure of the exposed person and for 
     each index person--
       (i) the specific location and manner of each such exposure;
       (ii) the beginning and ending dates of each such exposure; 
     and
       (iii) the identity of the manufacturer of the specific 
     asbestos or silica to which the exposed person or index 
     person was exposed.
       (E) The occupation and name of the employer of the exposed 
     person at the time of each alleged exposure.
       (F) If the asbestos claim or silica claim involves more 
     than 1 claimant, the identity of the defendant or defendants 
     against whom each claimant asserts a claim.
       (G) The specific disease related to asbestos or silica 
     claimed to exist.
       (H) Any--
       (i) supporting documentation of the condition claimed to 
     exist; and
       (ii) documentation to support the claimant or index 
     person's identification of the asbestos or silica product 
     that such person was exposed to.
       (2) Individual requirement.--
       (A) In general.--All asbestos claims and silica claims 
     along with any sworn information required under paragraph (1) 
     shall be individually filed.
       (B) Class claims not permitted.--No claims on behalf of a 
     group or class of persons shall be permitted.
       (d) Prima Facie Evidence of Physical Impairment for 
     Nonmalignant Asbestos Claims.--
       (1) In general.--No person shall bring or maintain an 
     asbestos claim related to an alleged nonmalignant asbestos-
     related condition in the absence of a prima facie showing of 
     physical impairment of the exposed person for which asbestos 
     exposure is a substantial contributing factor.
       (2) Prima facie showing.--A prima facie showing under 
     paragraph (1) shall be made as to each defendant and include 
     a detailed narrative medical report and diagnosis by a 
     qualified physician that includes:
       (A) Evidence verifying that the diagnosing, qualified 
     physician has taken a detailed occupational and exposure 
     history from the exposed person or, if that person is 
     deceased, from a person who is knowledgeable about the 
     exposures that form the basis for the claim, including 
     identification of--
       (i) all of the exposed person's places of employment and 
     exposure to airborne contaminants (including asbestos, 
     silica, and other disease-causing dusts, mists, fumes, and 
     airborne contaminants) that can cause pulmonary impairment; 
     and
       (ii) the nature, duration, and level of each such exposure.
       (B) Evidence--
       (i) verifying that the diagnosing, qualified physician has 
     taken a detailed medical and smoking history, including a 
     thorough review of--

       (I) the exposed person's past and present medical problems; 
     and
       (II) the most probable cause of each such medical problem; 
     or

       (ii) if the exposed person is deceased, from a person who 
     is knowledgeable regarding such exposed person's medical and 
     smoking history.
       (C) Evidence sufficient to demonstrate--
       (i) that at least 10 years have elapsed since the exposed 
     person's first exposure to asbestos; and
       (ii) the date of any such diagnosis.
       (D) A determination by the diagnosing, qualified physician, 
     on the basis of a medical examination and pulmonary function 
     testing of the exposed person, or if the exposed person is 
     deceased, based upon the medical records of the deceased, 
     that the claimant has, or if deceased, that the claimant had 
     a permanent respiratory impairment rating of at least Class 2 
     as defined by, and evaluated under, the AMA's Guides to the 
     Evaluation of Permanent Impairment.
       (E) Evidence verifying that the exposed person has an ILO 
     quality 1 chest x-ray (or a

[[Page S1197]]

     quality 2 chest x-ray if the exposed person is deceased and a 
     quality 1 chest x-ray does not exist) read by a certified B-
     reader as showing, according to the ILO scale--
       (i) bilateral small irregular opacities (s, t, or u) graded 
     1/0 or higher on the ILO scale;
       (ii) bilateral pleural thickening graded b2 or higher on 
     the ILO scale including blunting of the costophrenic angle; 
     or
       (iii) pathological asbestosis graded 1(B) or higher under 
     the criteria published in the Asbestos-Associated Diseases, 
     Special Issue of the Archives of Pathological and Laboratory 
     Medicine, Volume 106, Number 11, Appendix 3 (October 8, 
     1982).
       (F) A determination by the diagnosing, qualified physician 
     that asbestosis or diffuse pleural thickening is a 
     substantial contributing factor to the exposed person's 
     physical impairment, based at a minimum on a determination 
     that the claimant has--
       (i) either--

       (I) forced vital capacity below the predicted lower limit 
     of normal and FEV-1/FVC ratio (using actual values) at or 
     above the predicted lower limit of normal; or
       (II) forced vital capacity below the predicted lower limit 
     of normal and total lung capacity, by plethysmography or 
     timed gas dilution, below the predicted lower limit of 
     normal; and

       (ii) diffusing capacity of carbon monoxide below the lower 
     limit of normal or below 80 percent of predicted.
       (G) Verification that the diagnosing, qualified physician 
     has concluded that the exposed person's impairment was not 
     more probably the result of causes other than asbestos 
     exposure as revealed by the employment, medical, and smoking 
     history of the exposed person. Any verification that includes 
     a conclusion which states that the medical findings and 
     impairment are consistent or compatible with asbestos 
     exposure or silica-related disease does not meet the 
     requirements of this subsection.
       (H) Copies of--
       (i) the B-reading, pulmonary function tests (including 
     printouts of the flow volume loops, volume time curves, DLCO 
     graphs, and data for all trials, and all other elements 
     required to demonstrate compliance with the equipment, 
     quality, interpretation, and reporting standards established 
     in this Act);
       (ii) lung volume tests;
       (iii) reports of x-ray examinations and diagnostic imaging 
     of the chest;
       (iv) pathology reports; and
       (v) any other testing reviewed by the diagnosing, qualified 
     physician in reaching the physician's conclusions.
       (e) Prima Facie Evidence of Physical Impairment for 
     Asbestos-Related Cancer.--
       (1) In general.--No person shall bring or maintain an 
     asbestos claim related to an alleged asbestos-related cancer, 
     other than mesothelioma, in the absence of a prima facie 
     showing of a primary cancer for which asbestos exposure is a 
     substantial contributing factor.
       (2) Prima facie showing.--A prima facie showing under 
     paragraph (1) shall be made as to each defendant and include 
     a detailed narrative medical report and diagnosis by a 
     qualified physician that includes:
       (A) Evidence verifying that the diagnosing, qualified 
     physician has taken a detailed occupational and exposure 
     history from the exposed person or, if that person is 
     deceased, from a person who is knowledgeable about the 
     exposures that form the basis for the claim, including 
     identification of--
       (i) all of the exposed person's places of employment and 
     exposure to airborne contaminants (including asbestos, 
     silica, and other disease-causing dusts, mists, fumes, and 
     airborne contaminants) that can cause pulmonary impairment; 
     and
       (ii) the nature, duration, and level of each such exposure.
       (B) Evidence--
       (i) verifying that the diagnosing, qualified physician has 
     taken a detailed medical and smoking history, including a 
     thorough review of--

       (I) the exposed person's past and present medical problems; 
     and
       (II) the most probable cause of each such medical problem; 
     or

       (ii) if the exposed person is deceased, from a person who 
     is knowledgeable regarding such exposed person's medical and 
     smoking history.
       (C) Evidence sufficient to demonstrate--
       (i) that at least 10 years have elapsed since the exposed 
     person's first exposure to asbestos; and
       (ii) the date of any such diagnosis of the cancer.
       (D) Evidence verifying that the exposed person has--
       (i) an ILO quality 1 chest x-ray (or a quality 2 chest x-
     ray if the exposed person is deceased and a quality 1 chest 
     x-ray does not exist) read by a certified B-reader as 
     showing, according to the ILO scale, bilateral small 
     irregular opacities (s, t, or u) graded 1/0 or higher on the 
     ILO scale; or
       (ii) pathological asbestosis graded 1(B) or higher under 
     the criteria published in the Asbestos-Associated Diseases, 
     Special Issue of the Archives of Pathological and Laboratory 
     Medicine, Volume 106, Number 11, Appendix 3 (October 8, 
     1982).
       (E) Verification that the diagnosing, qualified physician 
     has concluded that the exposed person's impairment was not 
     more probably the result of causes other than asbestos as 
     revealed by the employment, medical, and smoking history of 
     the exposed person. Any verification that includes a 
     conclusion which states that the medical findings and 
     impairment are consistent or compatible with asbestos 
     exposure or asbestos-related disease does not meet the 
     requirements of this subsection.
       (F) Copies of--
       (i) the B-reading, pulmonary function tests (including 
     printouts of the flow volume loops, volume time curves, DLCO 
     graphs, and data for all trials, and all other elements 
     required to demonstrate compliance with the equipment, 
     quality, interpretation, and reporting standards established 
     in this Act);
       (ii) lung volume tests;
       (iii) reports of x-ray examinations and diagnostic imaging 
     of the chest;
       (iv) pathology reports; and
       (v) any other testing reviewed by the diagnosing, qualified 
     physician in reaching the physician's conclusions.
       (f) Prima Facie Evidence of Physical Impairment for 
     Asbestos-Related Mesothelioma.--
       (1) In general.--No person shall bring or maintain an 
     asbestos claim related to alleged mesothelioma in the absence 
     of a prima facie showing of an asbestos-related malignant 
     tumor with a primary site of origin in the pleura, the 
     peritoneum, or pericardium.
       (2) Prima facie showing.--A prima facie showing under 
     paragraph (1) shall be made as to each defendant and include 
     a report by a qualified Board-certified pathologist 
     certifying the diagnosis of mesothelioma and a report by a 
     qualified physician certifying that the mesothelioma was not 
     more probably the result of causes other than asbestos 
     exposure as revealed by the employment, medical, and smoking 
     history of the exposed person.
       (g) Prima Facie Evidence of Physical Impairment for Silica 
     Claims.--
       (1) In general.--No person shall bring or maintain a silica 
     claim related to an alleged silica-related condition, other 
     than a silica-related cancer, in the absence of a prima facie 
     showing of physical impairment as a result of a medical 
     condition to which exposure to silica was a substantial 
     contributing factor.
       (2) Prima facie showing.--A prima facie showing under 
     paragraph (1) shall be made as to each defendant and include 
     a detailed narrative medical report and diagnosis by a 
     qualified physician that includes:
       (A) Evidence verifying that the diagnosing, qualified 
     physician has taken a detailed occupational and exposure 
     history from the exposed person or, if that person is 
     deceased, from a person who is knowledgeable about the 
     exposures that form the basis for the claim, including 
     identification of--
       (i) all of the exposed person's places of employment and 
     exposure to airborne contaminants (including asbestos, 
     silica, and other disease-causing dusts, mists, fumes, and 
     airborne contaminants) that can cause pulmonary impairment; 
     and
       (ii) the nature, duration, and level of each such exposure.
       (B) Evidence verifying that the diagnosing, qualified 
     physician has taken a detailed medical and smoking history 
     from the exposed person (or if the exposed person is 
     deceased, from the person most knowledgeable of such 
     history), including a thorough review of--
       (i) the exposed person's past and present medical problems; 
     and
       (ii) the most probable cause of each such medical problem.
       (C) A determination by the diagnosing, qualified physician 
     that the claimant has--
       (i) an ILO quality 1 chest x-ray (or a quality 2 chest x-
     ray if the exposed person is deceased and a quality 1 chest 
     x-ray does not exist) read by a certified B-reader as 
     showing, according to the ILO scale, bilateral predominantly 
     nodular opacities (p, q, or r) occurring primarily in the 
     upper lung fields, graded 1/0 or higher;
       (ii) an ILO quality 1 chest X-ray (or a quality 2 chest X-
     ray if the exposed person is deceased and a quality 1 chest 
     X-ray does not exist) read by a certified B-reader as 
     showing, according to the ILO scale, A, B, or C sized 
     opacities representing complicated silicosis (also known as 
     progressive massive fibrosis);
       (iii) pathological demonstration of classic silicotic 
     nodules exceeding 1 centimeter in diameter as set forth in 
     112 Archives of Pathology & Laboratory Medicine 673-720 
     (1988);
       (iv) progressive massive fibrosis radiologically 
     established by large opacities greater than 1 centimeter in 
     diameter; or
       (v) acute silicosis.
       (D) If the claimant is asserting a claim for silicosis, 
     evidence verifying there has been a sufficient latency period 
     for the applicable type of silicosis.
       (E) A determination by the diagnosing, qualified physician, 
     on the basis of a personal medical examination and pulmonary 
     function testing of the exposed person, or if the exposed 
     person is deceased, based upon the medical records of the 
     deceased, that the claimant has, or if deceased, had a 
     permanent respiratory impairment rating of at least Class 2 
     as defined by and evaluated pursuant to the AMA's Guides to 
     the Evaluation of Permanent Impairment.
       (F) Verification that the diagnosing, qualified physician 
     has concluded that the exposed person's impairment was not 
     more probably the result of causes other than silica exposure 
     as revealed by the employment, medical, and smoking history 
     of the exposed person. Any verification that includes a 
     conclusion which states that the medical findings and 
     impairment are consistent or compatible with silica exposure 
     or silica-related

[[Page S1198]]

     disease does not meet the requirements of this subsection.
       (G) Copies of--
       (i) the B-reading, pulmonary function tests (including 
     printouts of the flow volume loops, volume time curves, DLCO 
     graphs, and data for all trials, and all other elements 
     required to demonstrate compliance with the equipment, 
     quality, interpretation, and reporting standards established 
     in this Act);
       (ii) lung volume tests;
       (iii) reports of x-ray examinations and diagnostic imaging 
     of the chest;
       (iv) pathology reports; and
       (v) any other testing reviewed by the diagnosing, qualified 
     physician in reaching the physician's conclusions.
       (h) Prima Facie Evidence of Physical Impairment for Silica-
     Related Cancer.--
       (1) In general.--No person shall bring or maintain a silica 
     claim related to an alleged silica-related cancer in the 
     absence of a prima facie showing of a primary cancer for 
     which exposure to the defendant's silica is a substantial 
     contributing factor.
       (2) Prima facie showing.--A prima facie showing under 
     paragraph (1) shall be made as to each defendant and include 
     a detailed narrative medical report and diagnosis by a 
     qualified physician that includes:
       (A) Evidence verifying that the diagnosing, qualified 
     physician has taken a detailed occupational and exposure 
     history from the exposed person or, if that person is 
     deceased, from a person who is knowledgeable about the 
     exposures that form the basis for the claim, including 
     identification of--
       (i) all of the exposed person's places of employment and 
     exposure to airborne contaminants (including silica and other 
     disease-causing dusts, mists, fumes, and airborne 
     contaminants) that can cause pulmonary impairment; and
       (ii) the nature, duration, and level of each such exposure.
       (B) Evidence verifying that the diagnosing, qualified 
     physician has taken a detailed medical and smoking history 
     from the exposed person (or if the exposed person is 
     deceased, from the person most knowledgeable of that 
     history), including a thorough review of--
       (i) the exposed person's past and present medical problems; 
     and
       (ii) the most probable cause of each such medical problem.
       (C) A determination by the diagnosing, qualified physician 
     that the claimant has--
       (i) an ILO quality 1 chest x-ray (or a quality 2 chest x-
     ray if the exposed person is deceased and a quality 1 chest 
     x-ray does not exist) read by a certified B-reader as 
     showing, according to the ILO scale, bilateral predominantly 
     nodular opacities (p, q, or r) occurring primarily in the 
     upper lung fields, graded 1/0 or higher;
       (ii) an ILO quality 1 chest X-ray (or a quality 2 chest X-
     ray if the exposed person is deceased and a quality 1 chest 
     X-ray does not exist) read by a certified B-reader as 
     showing, according to the ILO scale, A, B, or C sized 
     opacities representing complicated silicosis (also known as 
     progressive massive fibrosis); or
       (iii) a pathological demonstration of classic silicotic 
     nodules exceeding 1 centimeter in diameter as set forth in 
     112 Archives of Pathology & Laboratory Medicine 673-720 
     (1988).
       (D) Evidence sufficient to demonstrate--
       (i) that at least 10 years have elapsed since the exposed 
     person's first exposure to silica; and
       (ii) the date of any such diagnosis of the cancer.
       (E) Verification that the diagnosing, qualified physician 
     has concluded that the exposed person's impairment was not 
     more probably the result of causes other than silica exposure 
     as revealed by the employment, medical, and smoking history 
     of the exposed person. Any verification that includes a 
     conclusion which states that the medical findings and 
     impairment are consistent or compatible with silica exposure 
     or silica-related disease does not meet the requirements of 
     this subsection.
       (F) Copies of--
       (i) the B-reading, pulmonary function tests (including 
     printouts of the flow volume loops, volume time curves, DLCO 
     graphs, and data for all trials, and all other elements 
     required to demonstrate compliance with the equipment, 
     quality, interpretation, and reporting standards established 
     in this Act);
       (ii) lung volume tests;
       (iii) reports of x-ray examinations and diagnostic imaging 
     of the chest;
       (iv) pathology reports; and
       (v) any other testing reviewed by the diagnosing, qualified 
     physician in reaching the physician's conclusions.
       (i) Compliance With Technical Standards.--Evidence relating 
     to physical impairment under this section, including 
     pulmonary function testing and diffusing studies--
       (1) shall comply with the technical recommendations for 
     examinations, testing procedures, quality assurance, quality 
     control, and equipment in the AMA's Guides to the Evaluation 
     of Permanent Impairment, the most current version of the 
     Official Statements of the American Thoracic Society 
     regarding lung function testing, including general 
     considerations for lung function testing, standardization of 
     spirometry, standardization of the measurement of lung 
     volumes, standardization of the single-breath determination 
     of carbon monoxide uptake in the lung, and interpretative 
     strategies for lung testing in effect at the time of the 
     performance of any examination or test on the exposed person 
     required by this Act;
       (2) may not be based on testing or examinations that 
     violate any law, regulation, licensing requirement, or 
     medical code of practice of any State in which the 
     examination, test, or screening was conducted; and
       (3) may not be obtained under the condition that a claimant 
     retains the legal services of an attorney or law firm 
     sponsoring the examination, test, or screening.

     SEC. 5. PROCEDURES.

       (a) No Presumption at Trial.--Evidence relating to the 
     prima facie showings required under section 4 shall not--
       (1) create any presumption that a claimant has an asbestos 
     or silica-related injury or impairment; and
       (2) be conclusive as to the liability of any defendant.
       (b) Admissibility of Evidence.--No evidence shall be 
     offered at a trial, and a jury shall not be informed of--
       (1) the granting or denial of a motion to dismiss an 
     asbestos or silica claim under the provisions of this Act; or
       (2) the provisions of section 4 with respect to what 
     constitutes a prima facie showing of asbestos or silica-
     related impairment.
       (c) Discovery.--Until such time as a trial court enters an 
     order determining that a claimant has established prima facie 
     evidence of impairment, no asbestos or silica claim shall be 
     subject to discovery, except discovery--
       (1) related to establishing or challenging such prima facie 
     evidence; or
       (2) by order of the trial court upon--
       (A) motion of 1 of the parties; and
       (B) for good cause shown.
       (d) Consolidation.--
       (1) At trial.--
       (A) In general.--A court may consolidate for trial any 
     number and type of asbestos or silica claims with the consent 
     of all the parties.
       (B) Absence of consent.--In the absence of any consent 
     under subparagraph (A), a court may consolidate for trial 
     only asbestos claims or silica claims relating to the same 
     exposed person and members of the household of such exposed 
     person.
       (2) Class actions.--No class action or any other form of 
     mass aggregation claim filing relating to more than 1 exposed 
     person, except claims relating to the exposed person and 
     members of the household of such exposed person, shall be 
     permitted for asbestos or silica claims.
       (3) At discovery.--Any decision by a court to consolidate 
     claims under paragraph (1) shall not preclude consolidation 
     of asbestos or silica claim cases by a court order for 
     pretrial or discovery purposes.
       (e) Forum Non Conveniens.--
       (1) In general.--Any asbestos or silica claim filed on or 
     after the date of enactment of this Act, if the court in 
     which such claim is pending, on written motion of a party, 
     finds that in the interest of justice and for the convenience 
     of the parties a claim or action to which this Act applies 
     would be more properly heard in a forum outside the State, 
     district, or division in which such claim was filed, the 
     court shall--
       (A) decline to exercise jurisdiction under the doctrine of 
     forum non conveniens; and
       (B) shall stay or dismiss such claim.
       (2) Considerations.--In determining whether to grant a 
     motion to stay or dismiss a claim under paragraph (1), a 
     court shall consider whether--
       (A) an alternate forum exists in which such claim or action 
     may be tried;
       (B) the alternate forum provides an adequate remedy;
       (C) maintenance of such claim in the court of the State in 
     which the claim was filed would work a substantial injustice 
     to the moving party;
       (D) the alternate forum, as a result of the submission of 
     the parties or otherwise, can exercise jurisdiction over all 
     the defendants properly joined to such claim;
       (E) the balance of the private interests of the parties and 
     the public interest of the State in which such claim was 
     filed predominate in favor of such claim being brought in an 
     alternate forum; and
       (F) the stay or dismissal would not result in unreasonable 
     duplication or proliferation of litigation.
       (3) Waiver of statute of limitations defense.--A trial 
     court may not abate or dismiss a claim under this subsection 
     until a defendant files with the court, or with the clerk of 
     the court, a written stipulation that, with respect to a new 
     action on such claim commenced by the plaintiff, the 
     defendant waives the right to assert a statute of limitations 
     defense in all other States, districts, or divisions in which 
     such claim was not barred by limitations at the time such 
     claim was filed in the State where such claim was originally 
     filed as necessary to effect a tolling of the limitations 
     periods in those States --
       (A) beginning on the date such claim was originally filed; 
     and
       (B) ending on the date--
       (i) such claim is dismissed; or
       (ii) an abatement period of 1 year ends.
       (4) Court duties.--A court may not abate or dismiss a claim 
     under paragraph (3) until a defendant files with the court, 
     or with the clerk of the court, a written stipulation that, 
     with respect to a new action on such claim commenced by the 
     plaintiff in another State, district, or division, that the 
     claimant and the defendant may--
       (A) rely on responses to discovery already provided under 
     the rules of civil procedure of

[[Page S1199]]

     the State, district, or division in which such claim was 
     originally filed; and
       (B) rely on any additional discovery that may be conducted 
     under the rules of civil procedure in another State, 
     district, or division.
       (f) Venue.--
       (1) In general.--An asbestos or silica claim filed after 
     the date of enactment of this Act may be filed only in the 
     county of the State or the district or division of the United 
     States where--
       (A) the claimant resided for a period of at least 180 
     consecutive days immediately prior to filing suit; or
       (B) the exposed person had the most substantial cumulative 
     exposure to asbestos for an asbestos claim or to silica for a 
     silica claim, and that such exposure was a substantial 
     contributing factor to the asbestos or silica related 
     impairment on which such claim is based.
       (2) Improper venue.--With respect to asbestos or silica 
     claims pending as of the date of enactment of this Act, and 
     in which the trial, or any new trial or retrial following 
     motion, appeal, or otherwise, has not commenced with 
     presentation of evidence to the trier of fact as of the date 
     of enactment of this Act, any claim as to which venue would 
     not have been proper if the claim originally had been brought 
     in accordance with paragraph (1) shall, not later than 90 
     days after the date of enactment of this Act, be transferred 
     to the court of general civil jurisdiction in the county, 
     district, or division of the State in which the action is 
     pending in which either--
       (A) the claimant was domiciled at the time the asbestos or 
     silica claim originally was filed; or
       (B) the exposed person had the most substantial cumulative 
     exposure to asbestos for an asbestos claim or to silica for a 
     silica claim, and that such exposure was a substantial 
     contributing factor to the asbestos or silica related 
     impairment on which the claim is based.
       (3) Removal.--
       (A) In general.--If a State court refuses or fails to apply 
     the provisions of this Act, any party in a civil action for 
     an asbestos claim may remove such action to a district court 
     of the United States in accordance with chapter 89 of title 
     28, United States Code.
       (B) Jurisdiction over removed actions.--The district courts 
     of the United States shall have jurisdiction of all civil 
     actions removed under this paragraph, without regard to the 
     amount in controversy and without regard to the citizenship 
     or residence of the parties.
       (C) Removal by any defendant.--A civil action may be 
     removed to the district court of the United States under this 
     paragraph by any defendant without the consent of all 
     defendants.
       (D) Remand.--A district court of the United States shall 
     remand any civil action removed solely under this paragraph, 
     unless the court finds that--
       (i) the State court failed to comply with procedures 
     prescribed by law; or
       (ii) the failure to dismiss by the State court lacked 
     substantial support in the record before the State court.
       (E) Limitation.--Civil actions in State court subject to 
     this Act may not be removed to any district court of the 
     United States unless such removal is otherwise proper without 
     regard to the provisions of this Act or is removed under this 
     paragraph.
       (g) Preemption.--
       (1) In general.--This Act shall govern all asbestos and 
     silica claims filed in Federal or State courts on or after 
     the effective date of this Act, or which are pending in 
     Federal or State courts on the effective date of this Act and 
     in which the trial, or any new trial or retrial following 
     motion, appeal or otherwise, has not commenced with 
     presentation of evidence to the trier of fact as of the 
     effective date of this Act, except for enforcement of claims 
     for which a final judgment has been duly entered by a court 
     and that is no longer subject to any appeal or judicial 
     review on the effective date of this Act.
       (2) Greater limitations by states.--Nothing in this Act 
     shall limit or preempt any State law or precedent having the 
     effect of imposing additional or greater limits or 
     restrictions on the assertion or prosecution of an asbestos 
     or silica claim.

     SEC. 6. STATUTE OF LIMITATIONS; 2-DISEASE RULE.

       (a) Statute of Limitations.--
       (1) In general.--An asbestos or silica claim not barred in 
     a State as of the date of enactment of this Act, a claimant's 
     cause of action shall not accrue, nor shall the running of 
     limitations commence, prior to the earlier of the date--
       (A) on which an exposed person received a medical diagnosis 
     of an asbestos-related impairment or silica-related 
     impairment;
       (B) on which an exposed person discovered facts that would 
     have led a reasonable person to obtain a medical diagnosis 
     with respect to the existence of an asbestos-related 
     impairment or silica-related impairment; or
       (C) of death of the exposed person having an asbestos-
     related or silica-related impairment.
       (2) Rule of construction.--Nothing in this section shall be 
     construed to revive or extend limitations with respect to any 
     claim for asbestos-related impairment or silica-related 
     impairment that was otherwise time-barred as a matter of 
     applicable State law as of the date of enactment of this Act.
       (3) No effect on settlement agreements.--Nothing in this 
     section shall be construed so as to adversely affect, impair, 
     limit, modify, or nullify any settlement agreement with 
     respect to an asbestos or silica claim entered into before 
     the date of enactment of this Act.
       (b) 2-Disease Rule; Distinct Claims.--
       (1) In general.--An asbestos or silica claim arising out of 
     a non-malignant condition shall be a distinct cause of 
     action, wholly separate from a claim for an asbestos-related 
     or silica-related cancer.
       (2) No damages for fear.--No damages shall be awarded for 
     fear or increased risk of future disease in any civil action 
     asserting an asbestos or silica claim.

     SEC. 7. EXPERTS.

       (a) In General.--A person who holds a valid medical license 
     in good standing in a State, but who is not licensed to 
     practice medicine in that State, and who testifies, whether 
     by deposition, affidavit, live, or otherwise, as a medical 
     expert witness on behalf of any party in an asbestos or 
     silica claim is deemed to have a temporary license to 
     practice medicine in the State in which the claim is pending 
     solely for the purpose of providing such testimony and is 
     subject to that extent to the authority of the medical 
     licensing board or agency of that State.
       (b) Penalty for False Testimony.--If a physician renders 
     expert medical testimony that is false, intentionally 
     misleading or deceptive, or that intentionally misstates the 
     relevant applicable standard of care, the medical licensing 
     board or agency of the State in which the claim is pending 
     may take such action as is permitted under the laws and 
     regulations of that State governing the conduct of 
     physicians.
       (c) Rule of Construction.--This section shall not be 
     construed to permit an out of State physician to practice 
     medicine in any other State other than as provided in this 
     section.

     SEC. 8. SEVERABILITY.

       If any provision of this Act, or the application of such 
     provision to any person or circumstance is held to be 
     unconstitutional, the remainder of this Act, and the 
     application of the provisions of such to any person or 
     circumstance shall not be affected thereby.

     SEC. 9. MISCELLANEOUS PROVISIONS.

       (a) Construction With Other Laws.--This Act shall not be 
     construed to--
       (1) affect the scope or operation of any workers' 
     compensation law or veterans' benefit program;
       (2) affect the exclusive remedy or subrogation provisions 
     of any such law; or
       (3) authorize any lawsuit which is barred by any such 
     provision of law.
       (b) Constitutional Authority.--The constitutional authority 
     for this Act is contained in Article I, section 8, clause 3 
     and Article III, section 1 of the Constitution of the United 
     States.

     SEC. 10. EFFECTIVE DATE.

       (a) In General.--This Act applies to all asbestos or silica 
     claims filed on or after the date of enactment of this Act.
       (b) Pending Proceedings.--This Act also applies to any 
     pending asbestos or silica claims in which a trial has not 
     commenced as of the date of enactment of this Act.
                                 ______
                                 
  SA 2792. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 121, lines 25 through page 122, line 1, strike 
     ``substantially equivalent to those of Libby, Montana'' and 
     insert ``greater than the standard non-occupationally exposed 
     population''.
                                 ______
                                 
  SA 2793. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:
       On page 37, between lines 22 and 23, insert the following:
       (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 subsection would result in unreasonably high 
     compensation to representatives of claimants in such cases; 
     and
       (ii) such limitation would not unduly limit the 
     availability of representatives to claimants.
       (c) Reasonable fee for work actually performed.--In 
     addition to paragraph (A), a representative of an individual 
     may not receive a fee, unless--
       (A) the representative submits to the Administrator 
     appropriately detailed billing documentation for the work 
     actually performed in the course of representation of the 
     claimant; and
       (B) the Administrator finds, based on the amount of the 
     award made to a claimant under this Act and on billing 
     documentation submitted by such claimant's representative, 
     that the fee to be awarded for the work actually performed on 
     behalf of the claimant

[[Page S1200]]

     does not exceed 200 percent of a reasonable hourly fee for 
     such work.
       On page 37, line 23, strike ``(3)'' and insert ``(D)''.
                                 ______
                                 
  SA 2794. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:
       On page 277, line 6, strike ``$600,000,000'' and insert 
     ``$150,000,000''.
                                 ______
                                 
  SA 2795. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 243, line 22, strike ``5 years'' and insert ``2 
     years, and in no case shall such total borrowing at any 1 
     time exceed $10,000,000,000.''.
                                 ______
                                 
  SA 2796. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 69, line 11, strike ``(a) in general.--''
       On page 69, line 19, strike all through page 70, line 22.
       On page 118, line 6, strike all through page 120, line 4.
                                 ______
                                 
  SA 2797. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 243, line 16, strike all through page 243, line 22, 
     and insert the following:
       (2) Federal sources of borrowing.--The Administrator may 
     not borrow from the Federal Financing Bank or any other 
     financing source of the Federal Government.
                                 ______
                                 
  SA 2798. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 315, line 22, strike ``monetary''.
       On page 316, line 4, strike ``substantial contributing 
     factor'' and insert ``contributing factor, in whole or in 
     part,''.
                                 ______
                                 
  SA 2799. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 365, between lines 8 and 9, insert the following:
       (i) Injunction After Confirmation of Bankruptcy Plan of 
     Reorganization.--
       (1) In general.--Section 524(g)(2)(B)(ii)(IV)(bb) of title 
     11, United States Code, is amended by inserting after 
     ``plan'' the following: ``, or, if such a vote is not 
     obtained with respect to any such class of claimants so 
     established, the plan satisfies the requirements for 
     confirmation of a plan under section 1129(b) that would apply 
     to such class if the class did not accept the plan for 
     purposes of section 1129(a)(8) (whether or not the class has 
     accepted the plan)''.
       (2) Effective date; application.--The amendment made by 
     paragraph (1) shall take effect on the date of enactment of 
     this Act, and shall apply with respect to cases under title 
     11 of the United States Code, which were commenced before, 
     on, or after such date.
                                 ______
                                 
  SA 2800. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 298, strike lines 16 and 17, and insert the 
     following:
       ``(A) the trust qualifies as a trust under section 201 of 
     that Act; and
       ``(B) the trust does not file an election under section 410 
     of that Act.
       On page 375, after line 23, insert the following:

     SEC. 410. OPT-OUT RIGHTS OF CERTAIN TRUSTS AND EFFECT OF OPT-
                   OUT.

       (a)  Opt-Out Rights.--Any trust defined under section 
     201(8) that has been established or formed under a plan of 
     reorganization under chapter 11 of title 11, United States 
     Code, confirmed by a duly entered order or judgment of a 
     court, which order or judgment is no longer subject to any 
     appeal or judicial review on the date of enactment of this 
     Act, may elect not to be covered by this Act by filing 
     written notice of such election to the Administrator not 
     later than 90 days after the date of enactment of this Act.
       (b) Effect of Opt-Out.--
       (1) In general.--This Act nor any amendment made by this 
     Act shall apply to--
       (A) any trust that makes an election under subsection (a); 
     or
       (B) any claim or future demand that has been channeled to 
     that trust.
       (2) Assets and other rights and claims.--A trust that makes 
     an election under subsection (a) shall retain all of its 
     assets. The contractual and other rights of a trust making an 
     election under subsection (a) and claims against other 
     persons (whether held directly or indirectly by others for 
     the benefit of the trust), including the rights and claims of 
     the trust against insurers, shall be preserved and not 
     abrogated by this Act.
                                 ______
                                 
  SA 2801. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 271, line 4, strike ``SCREENING,''.
       On page 271, line 7, strike all beginning with ``medical'' 
     through the comma on page 271, line 8.
       On page 272, line 10, strike all through page 277, line 6.
       On page 277, line 7, strike ``(e)'' and insert ``(c)''.
       On page 279, line 7, strike ``(f)'' and insert ``(d)''.
       On page 279, lines 9 and 10, strike ``medical screening''.
       On page 279, line 13, strike ``(g)'' and insert ``(e)''.
                                 ______
                                 
  SA 2802. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Fairness 
     in Asbestos Injury Resolution Act of 2006'' or the ``FAIR Act 
     of 2006''.
       (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--Asbestos Injury Claims Resolution Corporation

Sec. 101. Establishment of Asbestos Injury Claims Resolution 
              Corporation. 
Sec. 102. Advisory Committee on Asbestos Disease Compensation. 
Sec. 103. Medical Advisory Committee. 
Sec. 104. Claimant assistance. 
Sec. 105. Program startup. 
Sec. 106. Authority of the Chief Executive Officer.
Sec. 107. Establishment of Corporation.
Sec. 108. Board of Directors; officers and employees; conflicts.
Sec. 109. Powers; offices; tax laws; audit; annual report.

          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. Reimbursable medical monitoring.
Sec. 133. Payment. 
Sec. 134. Reduction in benefit payments for collateral sources. 
Sec. 135. State lien laws. 

[[Page S1201]]

            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.
Sec. 205. Stepdowns and funding holidays.
Sec. 206. Accounting treatment.

                Subtitle B--Asbestos Insurers Committee

Sec. 210. Definition.
Sec. 211. Establishment of Asbestos Insurers Committee.
Sec. 212. Duties of Asbestos Insurers Committee.
Sec. 213. Powers of Asbestos Insurers Committee.
Sec. 214. Personnel matters.
Sec. 215. Termination of Asbestos Insurers Committee.
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. 
Sec. 225. Education, consultation, and monitoring. 
Sec. 226. Oversight by the Secretary of the Treasury.
Sec. 227. Administrative funding.

                       TITLE III--JUDICIAL REVIEW

Sec. 301. Judicial review of procedures.
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. 
Sec. 306. Representations to court.

                   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. Additional funding or return to court.
Sec. 406. Rules of construction relating to liability of the United 
              States Government. 
Sec. 407. Violations of environmental health and safety requirements. 
Sec. 408. Nondiscrimination of health insurance. 
Sec. 409. Corporate responsibility for annual and financial reports.
Sec. 410. Opt-out rights of certain trusts and effect of opt-out.

                TITLE V--EXPEDITED CONGRESSIONAL ACTION

Sec. 501. Congressional action regarding modifications of the Fund. 
Sec. 502. Congressional approval procedure. 

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds the following:
       (1) Millions 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 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.
       (8) This crisis has also imposed a deleterious burden upon 
     the United States bankruptcy courts, which have assumed a 
     heavy burden of administering complicated and protracted 
     bankruptcies with limited personnel.
       (b) Purpose.--The purpose of this Act is to--
       (1) create a privately funded administrative scheme 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 worsen;
       (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) 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.
       (2) 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.
       (3) Asbestos claimant.--The term ``asbestos claimant'' 
     means an individual who files a claim under section 113.
       (4) Chief executive officer.--The term ``Chief Executive 
     Officer'' means the Chief Executive Officer for the Asbestos 
     Injury Claims Resolution Corporation appointed under sections 
     101(b) and 109(b).
       (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 final 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, severe asbestosis disease, 
     disabling asbestosis disease, mesothelioma, and lung cancer.
       (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

[[Page S1202]]

     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 in 1 or a series of 
     transactions, acquires all or substantially all of the assets 
     and properties (including, without limitation, under section 
     363(b) or 1123(b)(4) of title II, United States Code), 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 Employers' Liability Act, 
     or damages recovered by any employee in a liability action 
     against an employer.

                  TITLE I--ASBESTOS CLAIMS RESOLUTION

       Subtitle A--Asbestos Injury Claims Resolution Corporation

     SEC. 101. ESTABLISHMENT OF ASBESTOS INJURY CLAIMS RESOLUTION 
                   CORPORATION.

       (a) In General.--
       (1) Establishment.--There is established an Asbestos Injury 
     Claims Resolution Corporation (referred to in this Act as the 
     ``Corporation'') to undertake a program on compensation for 
     injuries suffered by exposure to asbestos. The Corporation 
     shall undertake the performance of the duties in this Act.
       (2) Purpose.--The purpose of the Corporation 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. Compensation 
     amounts provided by the Corporation shall be subject to the 
     availability of funds in the Asbestos Injury Claims 
     Resolution Fund.
       (3) Expenses.--There shall be available from the Asbestos 
     Injury Claims Resolution Fund to the Chief Executive Officer 
     sums reasonably necessary for the administrative and legal 
     expenses of the Corporation, not to exceed $100,000,000 for 
     the first 6 years, $50,000,000 for the following 10 years, 
     and $25,000,000 thereafter.
       (b) Appointment of the Chief Executive Officer.--
       (1) In general.--The Chief Executive Officer shall be 
     appointed by the Board of Directors of the Asbestos Injury 
     Claims Resolution Corporation, to serve for a term of 5 
     years.
       (2) Removal.--The Chief Executive Officer may be removed at 
     any time by the Board of Directors for any reason the Board 
     determines sufficient.
       (c) Duties of Chief Executive Officer.--
       (1) In general.--The Chief Executive Officer 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 Corporation, 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) adopting such written 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 Chief Executive Officer 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 Corporation.
       (2) Certain enforcements.--For each infraction relating to 
     paragraph (1)(H), the Chief Executive Officer also refers 
     such matters to the Attorney General who 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 Attorney General shall prescribe appropriate 
     regulations to implement paragraph (1)(H).
       (3) Selection of deputy chief executive officers.--The 
     Chief Executive Officer shall select a Deputy Chief Executive 
     Officer for Claims Administration to carry out the Chief 
     Executive Officer's responsibilities under this title and a 
     Deputy Chief Executive Officer for Fund Management to carry 
     out the Chief Executive Officer's responsibilities under 
     title II of this Act. The Deputy Chief Executive Officers 
     shall report directly to the Chief Executive Officer.
       (d) Expeditious Determinations.--The Chief Executive 
     Officer shall prescribe rules to expedite claims for asbestos 
     claimants with exigent circumstances.
       (e) Audit and Personnel Review Procedures.--The Chief 
     Executive Officer shall establish audit and personnel review 
     procedures for evaluating the accuracy of eligibility 
     recommendations of agency and contract personnel.
       (f) Privacy of Records.--
       (1) In general.--The Corporation shall adopt written 
     procedures that are at least as protective of the privacy of 
     records under section 522a of title 5, United States Code 
     (commonly referred to as the Privacy Act of 1974), that shall 
     govern the availability of records to claimants, 
     participants, and the public of the Corporation, including 
     the Asbestos Insurers Committee within 180 days after the 
     date of enactment of this Act.
       (g) Publication of Written Procedures.--The Chief Executive 
     Officer shall publish in a newspaper with a circulation of at 
     least 500,000 and on the Internet any written procedures or 
     rules promulgated or adopted under this Act.

     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 Chief Executive Officer 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 2 members. Of the 2--

[[Page S1203]]

       (i) 1 shall be selected to represent the interests of 
     claimants; and
       (ii) 1 shall be selected to represent the interests of 
     participants.
       (B) The Chief Executive Officer shall appoint 16 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, administering a compensation or 
     insurance program, or as actuaries, auditors, or investment 
     managers. 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 15 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 Chief 
     Executive Officer 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 Chief Executive Officer 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 Chief Executive Officer 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 Chief Executive Officer 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 
     each year thereafter.
       (5) The Chief Executive Officer shall provide to the 
     Committee such information as is necessary and appropriate 
     for the Committee to carry out its responsibilities under 
     this section. The Chief Executive Officer may, upon request 
     of the Advisory Committee, secure directly from any Federal, 
     State, or local department or agency such information as may 
     be necessary and appropriate to enable the Advisory Committee 
     to carry out its duties under this section.
       (6) The Chief Executive Officer 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 Chief Executive 
     Officer, 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 Chief Executive Officer shall 
     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 15 
     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 Chief Executive Officer 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;
       (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; and
       (5) provide for the establishment of a website where 
     claimants may access all relevant forms and information.
       (b) 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.
       (c) Legal Assistance.--
       (1) In general.--As part of the program established under 
     subsection (a), the Chief Executive Officer 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 Chief Executive Officer shall maintain a roster of 
     qualified attorneys who have agreed to provide pro bono 
     services to asbestos claimants under rules established by the 
     Chief Executive Officer. The claimants shall not be required 
     to use the attorneys listed on such roster.
       (3) Notice.--
       (A) In general.--The Chief Executive Officer 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.
       (d) Attorney's Fees.--
       (1) In general.--Notwithstanding any contract, the 
     representative of an individual may not receive, for services 
     rendered in connection with an asbestos claim or the claim of 
     an individual under this Act, more than 5 percent of a final 
     award made (whether by the Chief Executive Officer initially 
     or as a result of administrative or appellate review) under 
     this Act on such claim.
       (2) Exception.--The Chief Executive Officer may by rule 
     adopt a lower percentage limitation for particular classes of 
     cases if the Chief Executive Officer finds that--
       (A) the percentage limitation otherwise applicable under 
     this paragraph would result in unreasonably high compensation 
     to claimants' representatives in such cases; and
       (B) such limitation would not unduly limit the availability 
     of representatives to claimants.
       (3) Reasonable fee for work actually and reasonably 
     performed.--In addition to the provisions specified in 
     paragraphs (1) and (2), a representative of an individual may 
     not receive a fee unless--
       (A) the representative submits to the Chief Executive 
     Officer appropriately detailed billing documentation for the 
     work actually and reasonably performed in the course of 
     representation of the claimant; and
       (B) the Chief Executive Officer finds that the fee to be 
     awarded is for work actually and reasonably performed on 
     behalf of the claimant and does not exceed 200 percent of a 
     reasonable hourly fee for such work.
       (4) Penalty.--Any representative of an asbestos claimant 
     who violates this subsection shall be fined not more than the 
     greater of--
       (A) $5,000; or
       (B) twice the amount received by the representative for 
     services rendered in connection with each such violation.

     SEC. 105. PROGRAM STARTUP.

       (a) Interim Written Procedures.--Not later than 90 days 
     after the date of enactment of this Act, the Chief Executive 
     Officer shall adopt interim written procedures for the 
     processing of claims under this title and the operation of 
     the Fund under title II, including procedures for the 
     expediting of exigent claims.
       (b) Exigent Health Claims.--
       (1) In general.--The Chief Executive Officer shall develop 
     procedures to provide for an expedited process to categorize, 
     evaluate, and pay exigent health claims. Such procedures 
     shall include, pending adoption of final written procedures, 
     adoption of interim written procedures as needed for the 
     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) Special expedited procedures for pending malignant 
     mesothelioma asbestos claims.--
       (A) In general.--An individual who has an asbestos claim 
     pending in any Federal or State court on the enactment date 
     of this Act and who has documentation from a board certified 
     pathologist that the pathologist has diagnosed the claimant 
     with malignant mesothelioma may file a claim for compensation 
     under the special expedited provisions of subparagraph (B).

[[Page S1204]]

       (B) Expedited claims.--An exigent claim filed under 
     subparagraph (A) shall be processed for expedited decision if 
     the individual--
       (i) provides the documentation required by subparagraph 
     (A);
       (ii) attests that he has not received an award from any 
     source for malignant mesothelioma or, if he has, the 
     specifics of that award; and
       (iii) attests that he had an asbestos claim for malignant 
     mesothelioma pending in a Federal or State court on the date 
     of enactment of this Act and provides documentation of that 
     pending asbestos claim, including any response to that claim 
     by a defendant and any court orders.
       (C) Decision.--Within 90 days after the receipt of the 
     information required by subparagraphs (A) and (B), the Chief 
     Executive Officer shall determine if that information is 
     sufficient to meet the medical criteria of section 
     121(d)(10), ``Malignant Level 10'', and shall issue a 
     decision to the claimant. If the information is insufficient, 
     the Chief Executive Officer shall state the reasons with 
     particularity and offer assistance to the claimant of the 
     type provided under section 104, ``Claimant Assistance'', to 
     cure the insufficiency in an expeditious manner.
       (D) Availability of procedure.--The expedited procedures of 
     this paragraph shall be available for malignant mesothelioma 
     claims filed within 1 year of the date of enactment of this 
     Act.
       (4) Additional exigent health claims.--The Chief Executive 
     Officer may, in final written procedures issued under section 
     101(c), designate additional categories of claims that 
     qualify as exigent health claims under this subsection.
       (c) Extreme Financial Hardship Claims.--The Chief Executive 
     Officer shall, in final written procedures issued under 
     section 101(c), designate categories of claims to be handled 
     on an expedited basis as a result of extreme financial 
     hardship.
       (d) Interim Chief Executive Officer.--Until a Chief 
     Executive Officer is appointed by the Board of Directors, the 
     President shall appoint an Interim Chief Executive Officer 
     who shall have all the authority conferred by this Act on the 
     Chief Executive Officer and who shall be deemed to be the 
     Chief Executive Officer for the purposes of this Act. Before 
     final written procedures are promulgated relating to claims 
     processing, the Interim Chief Executive Officer may 
     prioritize claims processing, without regard to the time 
     requirements under subtitle B, based on severity of illness 
     and likelihood that the illness in question was exposed by 
     exposure to asbestos.
       (e)Transfer of Jurisdiction of Claims.--
       (1) In general.--
       (A) Transfer of jurisdiction.--Notwithstanding any other 
     provision of this Act, exclusive jurisdiction for the 
     resolution of any asbestos claim pending as of the date of 
     enactment of this Act or of any subsequently filed asbestos 
     claim, shall be transferred to the Asbestos Claims Resolution 
     Corporation, other than a claim for which a verdict or final 
     order or judgment has been entered by a court before the date 
     of enactment of this Act. The procedures under section 113 
     shall be followed in order to effectuate the transfer.
       (B) Pending court proceedings.--In order to effectuate the 
     transfer of jurisdiction, any Federal or State court with a 
     pending or subsequently filed asbestos claim is required to 
     enter a judgment of dismissal on 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 such action on its own motion.
       (2) Pursual of mesothelioma claims in federal court.--
       (A) In general.--Notwithstanding any other provision of 
     this Act, if, not later than 1 year after the date of 
     enactment of this Act, the Chief Executive Officer cannot 
     certify to Congress that the Fund is operational and 
     procedures are in place to review and pay mesothelioma claims 
     at a reasonable rate, each person that has filed a 
     mesothelioma claim stayed under paragraph (1)(A), or with 
     such a claim arising after the date of enactment of this Act, 
     may pursue that claim under the conditions described in 
     paragraph (3) in a Federal district court located within--
       (i) the State of residence of the claimant; or
       (ii) the State in which the asbestos exposure occurred.
       (B) Defendants not found.--If any defendant cannot be found 
     in the State described in clause (i) or (ii) of subparagraph 
     (A), the claim may be pursued only against that defendant in 
     the Federal district court located within any State in which 
     the defendant may be found.
       (C) Determination of most appropriate forum.--If a person 
     alleges that the asbestos exposure occurred in more than 1 
     Federal district the trial court shall determine which 
     Federal district is the most appropriate forum for the claim. 
     If the court determines that another forum would be the most 
     appropriate forum for a claim, the court shall dismiss the 
     claim. Any otherwise applicable statute of limitations shall 
     be tolled beginning on the date the claim was filed and 
     ending on the date the claim is dismissed under this 
     subparagraph.
       (D) Credit of claim and effect of operational fund.--If an 
     asbestos claim is pursued in Federal court in accordance with 
     this paragraph, any recovery by the claimant shall be a 
     collateral source compensation for purposes of section 134. 
     If the Chief Executive Officer subsequently certifies to 
     Congress that the Fund has become operational and the 
     procedures are in place to review and pay asbestos claims at 
     a reasonable rate, any claim in a civil action in Federal 
     court that is not actually on trial before a jury which has 
     been impaneled and presentation of evidence has commenced, 
     but before its deliberation, or before a judge and is at the 
     presentation of evidence, shall be deemed a reinstated claim 
     against the Fund and the civil action before the Federal or 
     State court shall be null and void. If the Chief Executive 
     Officer tenders an award to a claimant, any claim in a civil 
     action in Federal court that has not yet resulted in a final 
     judgment and award for the plaintiff shall be deemed a 
     reinstated claim and the civil action before the Federal 
     court shall be null and void.
       (3) Limits on cases.--In any action permitted under 
     paragraph (2), the following restrictions shall apply:
       (A) Award values.--Relief awarded in an action permitted 
     under paragraph (2) shall not exceed the amount of 
     compensation authorized to be awarded under this Fund to a 
     claimant under Malignant Level VII.
       (B) Attorneys' fees.--
       (i) In general.--Notwithstanding any contract, the 
     representative of an individual may not receive, for services 
     rendered in connection with an action permitted under 
     paragraph (2), more than 20 percent of a final award made as 
     a result of such action.
       (ii) Reasonable fee for work actually performed.--In 
     addition to the limitation specified in clause (i), a 
     representative of an individual may not receive a fee 
     unless--

       (I) the representative submits to the Chief Executive 
     Officer appropriately detailed billing documentation for the 
     work actually and reasonably performed in the course of 
     representation of the claimant; and
       (II) the Chief Executive Officer finds that the fee to be 
     awarded is for work actually and reasonably performed on 
     behalf of the claimant and does not exceed 200 percent of a 
     reasonable hourly fee for such work.

       (C) Penalty.--Any representative of an asbestos claimant 
     who violates this paragraph shall be fined not more than the 
     greater of--
       (i) $5,000; or
       (ii) twice the amount received by the representative for 
     services rendered in connection with each such violation.
       (4) Offset.--
       (A) Definition.--In this paragraph, the term ``asbestos 
     expenditure'' has the same meaning given the term ``prior 
     asbestos expenditure'' in paragraph (7) of section 201, but 
     without regard to the limit on the date of payment expressed 
     in that paragraph.
       (B) Offset on obligation.--Asbestos expenditures incurred 
     by a participant as a result of this subsection shall be 
     offset from the participant's obligations to the Fund and 
     from defendant or insurance participants' total obligations 
     to the Fund.

     SEC. 106. AUTHORITY OF THE CHIEF EXECUTIVE OFFICER.

       The Chief Executive Officer on any matter within the 
     jurisdiction of the Chief Executive Officer under this Act 
     may subpoena persons to compel testimony, records, and other 
     information relevant to the responsibilities of the Chief 
     Executive Officer under this section. The subpoena may be 
     enforced 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.

     SEC. 107. ESTABLISHMENT OF CORPORATION.

       (a) Federal Charter.--There is established a corporation to 
     be known as the Asbestos Injury Claims Resolution Corporation 
     (``Corporation'').
       (b) Nature of Corporation.--The Corporation is a nonprofit 
     corporation and shall have no capital stock. The Corporation 
     is not an agency or establishment of the United States 
     Government.
       (c) Termination of Corporation.--The Corporation shall 
     dissolve 40 years after the date of enactment of this Act, 
     unless dissolved sooner by the Board. All remaining funds 
     held by the Corporation shall be distributed to the defendant 
     participants and insurer participants in proportion to the 
     percentage of assessments paid into the Corporation.

     SEC. 108. BOARD OF DIRECTORS; OFFICERS AND EMPLOYEES; 
                   CONFLICTS.

       (a) Board of Directors.--There shall be in the Corporation 
     a Board of Directors. The Board shall appoint the Chief 
     Executive Officer and formulate the policies of the 
     Corporation.
       (b) Appointment.--The Corporation shall have a Board of 
     Directors (``Board''), consisting of 7 members. The Board 
     shall be appointed as follows:
       (1) Designated members.--The Secretary of the Treasury, the 
     Attorney General, and the Secretary of Labor shall serve as 
     members of the Board.
       (2) Appointed members.--The remaining 4 members of the 
     Board shall be appointed by the President. The members of the 
     Board shall not, by reason of such membership, be deemed to 
     be officers or employees of the United States.
       (3) Ineligibility.--None of the Directors shall be 
     individuals who, for each of the 5 years before their 
     appointments, earned more than 15 percent of their income by 
     serving in matters related to asbestos litigation as 
     consultants or expert witnesses.

[[Page S1205]]

       (c) Operation of the Board.--
       (1) Chair.--The Board shall be chaired by a member elected 
     by the Board, but the Chairperson may not be a full-time 
     Federal employee.
       (2) Meetings.--Meetings of the Board may be convened by the 
     Chairperson upon reasonable notice, but the Board shall meet 
     at least once per year.
       (3) Quorum.--A quorum shall consist of all of the Directors 
     or their representatives.
       (4) Compensation.--The compensation of each member of the 
     Board shall be paid by the Corporation as current expenses. 
     Each member other than members serving by virtue of their 
     Federal office shall be compensated at the daily equivalent 
     of the highest rate payable under section 5332 of title 1, 
     for each day (including travel time) during which the member 
     is engaged in the actual performance of duties as a member of 
     the Board. Members of the Board shall be reimbursed by the 
     Corporation for actual, reasonable, and necessary expenses 
     (including traveling and subsistence expenses) incurred by 
     them in the performance of the duties vested in the Board by 
     this Act.
       (e) Officers and Employees.--
       (1) Status.--Officers and employees of the Corporation are 
     not employees of the Federal Government as a result of their 
     service with the Corporation.
       (2) Chief executive officer.--There shall be in the 
     Corporation a Chief Executive Officer who shall be 
     responsible for carrying out the functions of the Corporation 
     as described in section 101(c) and in accordance with 
     policies established by the Board. The Chief Executive 
     Officer shall be appointed by the Board of Directors under 
     section 101(b) and on such additional terms as the Board may 
     determine and may be removed by the Board of Directors in 
     accordance with section 101(b)(2). The Chief Executive 
     Officer shall receive compensation at the rate provided by 
     law for the Vice President of the United States.
       (3) Appointment.--The Chief Executive Officer shall 
     appoint, remove, and fix compensation for all subordinate 
     officers and employees of the Corporation as determined 
     necessary.
       (4) Compensation.--No officer or employee of the 
     Corporation, other than the Chief Executive Officer, may be 
     compensated by the Corporation at an annual rate of pay which 
     exceeds the rate of basic pay in effect for level I of the 
     Executive Schedule under section 5312 of title 5, United 
     States Code.
       (f) Conflicts of Interest.--No part of the Corporation's 
     revenue, income, or property shall inure to the benefit of 
     its directors, officers, and employees, and such revenue, 
     earnings, or other income, or property shall be used for the 
     carrying out of the corporate purposes set forth in this Act. 
     No director, officer, or employee of the corporation shall in 
     any manner directly or indirectly participate in the 
     deliberation upon or the determination of any question 
     affecting his or her personal interests or the interests of 
     any corporation, partnership, or organization in which he or 
     she is directly or indirectly interested.
       (g) Regulations.--
       (1) Authority.--The Attorney General, after consultation 
     with the Secretaries of the Treasury and of Labor, shall 
     issue regulations imposing on the Chief Executive Officer, 
     the Deputy Chief Executive Officers, and the Board a 
     fiduciary duty to manage the affairs of the Corporation with 
     prudence in order to provide timely compensation to eligible 
     claimants, giving appropriate priority to those most ill, 
     while also preserving the funds available to the Corporation 
     in order to compensate all eligible claimants.
       (2) Sunset.--Effective 2 years after the enactment of this 
     Act, all authority to issue and revise regulations under this 
     section shall terminate.
       (h) Personal Liability.--The Chief Executive Officer, 
     Deputy Chief Executive Officers, and members of the Board 
     shall be exempt from civil liability for any act or omission 
     committed within the scope of their employment with the 
     Corporation, except for acts that constitute gross negligence 
     or intentional wrongdoing.
       (i) Corporate Compliance Officer.--
       (1) In general.--The Board of Directors shall establish 
     within the Corporation a Corporate Compliance Office headed 
     by a Chief Compliance Officer selected by the President on 
     the basis of integrity and demonstrated ability in 
     accounting, auditing, financial analysis, law, management 
     analysis, public administration, or investigations.
       (2) Independence.--Neither the Board nor the Chief 
     Executive Officer shall prevent or prohibit the Chief 
     Compliance Officer from initiating, carrying out, or 
     completing any audit or investigation during the course of 
     any audit or investigation.
       (3) Staff.--The Board shall authorize the Chief Compliance 
     Officer to obtain sufficient staff and other resources to 
     carry out the function of the position.
       (4) Duties.--It shall be the duty and responsibility of the 
     Chief Compliance Officer to--
       (A) provide policy direction for, and to conduct, 
     supervise, and coordinate audits and investigations relating 
     to the programs and operations of the Corporation;
       (B) recommend policies for, and to conduct, supervise, or 
     coordinate other activities carried out or financed by the 
     Corporation for the purpose of promoting economy and 
     efficiency in the administration of, or preventing and 
     detecting fraud and abuse in, its programs and operations;
       (C) recommend policies for promotion of economy and 
     efficiency in the administration of, or the prevention and 
     detection of fraud and abuse in, programs and operations 
     administered or financed by the Corporation, or the 
     identification and prosecution of participants in such fraud 
     or abuse;
       (D) keep the Chief Executive Officer, the Board, and 
     Congress fully and currently informed concerning fraud and 
     other serious problems, abuses, and deficiencies relating to 
     the administration of programs and operations administered or 
     financed by the Corporation; and
       (E) recommend corrective action concerning such problems, 
     abuses, and deficiencies, and report on the progress made in 
     implementing such corrective action.
       (5) Criminal violations.--In carrying out the duties and 
     responsibilities established under this section, the Chief 
     Compliance Officer shall file a criminal complaint with the 
     Attorney General whenever the Chief Compliance Officer has 
     reasonable grounds to believe there has been a violation of 
     Federal criminal law.

     SEC. 109. POWERS; OFFICES; TAX LAWS; AUDIT; ANNUAL REPORT.

       (a) Powers.--In furtherance of the purposes of the 
     Corporation, the Corporation may--
       (1) adopt bylaws consistent with law;
       (2) adopt, alter, use, and destroy a corporate seal;
       (3) sue and be sued, complain and defend, in its corporate 
     name and through its own counsel, in courts of competent 
     jurisdiction;
       (4) enter into contracts and modify, or consent to the 
     modification of, any contract or agreement to which the 
     Corporation is a party or in which the Corporation has an 
     interest;
       (5) make advance, progress, or other payments;
       (6) own and dispose of property;
       (7) issue written policies and statements; and
       (8) exercise any and all powers established under this Act 
     and such incidental powers as are necessary to carry out its 
     powers, duties, and functions under section 101 and other 
     provisions of this Act.
       (b) Principal and Branch Offices.--The Corporation shall 
     maintain its principal office in the metropolitan Washington, 
     DC, area. The Corporation may establish offices in any place 
     or places in which the Corporation may carry on all or any of 
     its operations and business.
       (c) Tax Laws.--The Corporation, including its franchise and 
     income, shall be exempt from the tax laws and from taxation 
     now or hereafter imposed by the United States, or any 
     territory or possession thereof, or by any State, county, 
     municipality, or local taxing authority.
       (d) Audit.--The programs, activities, receipts, 
     expenditures, and financial transactions of the Corporation 
     shall be subject to audit by an independent certified public 
     accounting firm under generally accepted accounting 
     principles that would apply to a private not-for-profit 
     corporation. The auditing firm shall have access to such 
     books, accounts, financial records, reports, files, and such 
     other papers, things, or property belonging to or in use by 
     the corporation and necessary to facilitate the audit, and 
     they shall be afforded full facilities for verifying 
     transactions with the balances or securities held by 
     depositories, fiscal agents, and custodians. A report on each 
     such audit shall be made by the auditing firm to the Board of 
     Directors, to the Secretary of the Treasury, and to Congress.
       (e) Annual Report.--Within 6 months after the close of each 
     fiscal year, the Corporation shall submit to the President 
     and to the Committees on the Judiciary of the Senate and the 
     House of Representatives the report on the activities of the 
     Corporation during the prior fiscal year required under 
     section 405 of this Act.
       (f) Annual Report Certification.--Before submission of the 
     annual report required under section 405 of this Act, the 
     Chief Executive Officer and the Deputy Chief Executive 
     Officers, in regard to their particular areas of 
     responsibility, shall certify that--
       (1) the signing officer has reviewed the report;
       (2) based on the officer's knowledge, the report does not 
     contain any untrue statement of a material fact or omit to 
     state a material fact necessary in order to make the 
     statements made, in light of the circumstances under which 
     such statements were made, not misleading;
       (3) based on such officer's knowledge, the financial 
     statements, and other financial information included in the 
     report, fairly present in all material respects the financial 
     condition and results of operations of the Corporation as of, 
     and for, the periods presented in the report;
       (4) the signing officers--
       (A) are responsible for establishing and maintaining 
     internal controls;
       (B) have designed such internal controls to ensure that 
     material information relating to the Corporation is made 
     known to such officers by others within the Corporation, 
     particularly during the period in which the periodic reports 
     are being prepared;
       (C) have evaluated the effectiveness of the Corporation's 
     internal controls as of a date within 90 days before the 
     report; and
       (D) have presented in the report their conclusions about 
     the effectiveness of their internal controls based on their 
     evaluation as of that date;

[[Page S1206]]

       (5) the signing officers have disclosed to the Comptroller 
     General and to the independent auditing firm--
       (A) all significant deficiencies in the design or operation 
     of internal controls which could adversely affect the 
     Corporation's ability to record, process, summarize, and 
     report financial data and have identified any material 
     weaknesses in internal controls; and
       (B) any fraud, whether or not material, that involves 
     management or other employees who have a significant role in 
     the Corporation's internal controls; and
       (6) the signing officers have indicated in the report 
     whether or not there were significant changes in internal 
     controls or in other factors that could significantly affect 
     internal controls subsequent to the date of their evaluation, 
     including any corrective actions with regard to significant 
     deficiencies and material weaknesses.

          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 estate of that individual, if the 
     individual is deceased or incompetent) may file a claim with 
     the Corporation 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 on December 31, 2004.
       (3) Limitation.--A claim may not be filed by any person 
     seeking contribution or indemnity.
       (b) Statute of Limitations.--
       (1) In general.--Except as otherwise provided in this 
     subsection, if an individual fails to file a claim with the 
     Corporation under this section within 2 years after the date 
     on which--
       (A) the individual first received a medical diagnosis of an 
     eligible disease or condition as provided for under this 
     subtitle and subtitle C;
       (B) the individual first discovered facts that would have 
     led a reasonable person to obtain a medical diagnosis with 
     respect to an eligible disease or condition; or
       (C) the Chief Executive Officer certifies the Fund is 
     operational, 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) Exception.--The statute of limitations in paragraph (1) 
     does not apply to the progression of non-malignant diseases 
     once the initial claim has been filed.
       (3) Effect on pending claims.--
       (A) In general.--If, on the date of enactment of this Act, 
     an asbestos claimant has any timely filed asbestos claim that 
     is pending--
       (i) in a Federal or State court; or
       (ii) with a trust established under title 11, United States 
     Code,

     such claimant shall file a claim under this section within 2 
     years after such date of enactment, or any claim relating to 
     that injury, and any other asbestos claim related to that 
     injury shall be extinguished, and recovery there shall be 
     prohibited.
       (B) Special rule.--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--
       (i) a non-contingent right to the payment of future 
     installments of a fixed award; or
       (ii) 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.
       (4) 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.--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) Required Information.--A claim filed under subsection 
     (a) shall be in such form, and contain such information in 
     such detail, as the Chief Executive Officer shall by written 
     procedures prescribe. At a minimum, a claim shall include--
       (1) the name, social security number, sex, 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 sufficient to establish 
     required asbestos exposure, accompanied by Social Security 
     records;
       (4) a complete 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, including any claim under a workers' 
     compensation law, brought by the claimant for asbestos-
     related injury or any other pulmonary, parenchymal, or 
     pleural reaction, including an identification of any recovery 
     of compensation or damages through settlement, judgment, or 
     otherwise;
       (8) for any claimant who has made a claim for asbestos-
     related injury or any other pulmonary, parenchymal, or 
     pleural reaction under a workers' compensation law, a 
     certification that the claimant has notified the workers' 
     compensation insurer or self-insured employer of the claim 
     made under this Act; and
       (9) 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, 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 Chief Executive Officer 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 Chief Executive Officer 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 Chief 
     Executive Officer shall consider the claim presented by the 
     claimant, the factual and medical evidence submitted by the 
     claimant in support of the claim, and the results of such 
     investigation as the Chief Executive Officer may deem 
     necessary to determine whether the claim satisfies the 
     criteria for eligibility established by this Act.
       (2) Additional evidence.--The Chief Executive Officer 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 paid by the Corporation in 
     accordance with CPT codes at medicare rates by region, at the 
     time of provision of services.
       (b) Proposed Decisions.--Not later than 90 days after the 
     filing of a claim, the Chief Executive Officer 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 Chief Executive Officer 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 
     Chief Executive Officer. 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 Chief 
     Executive Officer shall not be

[[Page S1207]]

     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.
       (2) Review of written record.--In lieu of a hearing under 
     paragraph (1), any claimant not satisfied with a proposed 
     decision of the Chief Executive Officer 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 Chief Executive 
     Officer. 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 Chief Executive Officer 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 Chief Executive 
     Officer 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 Chief Executive Officer shall develop 
     methods for auditing and evaluating the medical evidence 
     submitted as part of a claim. The Chief Executive Officer may 
     develop additional methods for auditing and evaluating other 
     types of evidence or information received by the Chief 
     Executive Officer.
       (2) Refusal to consider certain evidence.--
       (A) In general.--If the Chief Executive Officer 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 Chief 
     Executive Officer under subparagraph (A), the Chief Executive 
     Officer 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 Chief Executive Officer.
       (b) Review of Certified B-Readers.--
       (1) Evaluation.--At a minimum, the Chief Executive Officer 
     shall prescribe procedures to randomly assign a statistically 
     significant sample of claims for evaluation by independent 
     certified B-readers of x-rays submitted in support of a 
     claim, the cost of which shall be paid by the Corporation.
       (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 Chief Executive Officer 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 
     Chief Executive Officer shall take into account the findings 
     of the 2 independent B readers in making the determination on 
     such claim.
       (4) Certified b-readers.--The Chief Executive Officer 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 Chief Executive Officer 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, the Chief Executive Officer 
     shall have the authority, notwithstanding any other provision 
     of law, 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 
     Chief Executive Officer 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 Chief Executive Officer, but shall address 
     at least 5 percent of the claimants asserting status as 
     nonsmokers or ex-smokers.
       (3) Consent.--
       (A) In general.--The Chief Executive Officer 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, 
     the cost of which shall be paid by the Corporation.
       (B) Serum cotinine screening.--The Chief Executive Officer 
     shall require the performance of serum cotinine screening of 
     all claimants who assert they are nonsmokers or ex-smokers 
     for purposes of an award under Malignant Level VI, the cost 
     of which shall be paid by the Corporation.
       (4) Penalty for false statements.--
       (A) In general.--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).
       (B) No compensation.--Any claimant penalized as described 
     under subparagraph (A) shall not be entitled to compensation 
     under the Fund.
       (d) Pulmonary Function Testing.--The Chief Executive 
     Officer shall develop auditing procedures for pulmonary 
     function test results submitted as part of a claim, to ensure 
     that tests are conducted in accordance with American Thoracic 
     Society Criteria, as defined under section 121(a)(13).

                      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 reaction.--The 
     term ``bilateral asbestos-related nonmalignant reaction'' 
     means a diagnosis of bilateral asbestos-related nonmalignant 
     reaction based on--
       (A) an x-ray reading of 1/1 or higher based on the ILO 
     grade scale;
       (B) bilateral pleural plaques;
       (C) bilateral pleural thickening; or
       (D) bilateral pleural calcification.
       (3) Bilateral pleural reaction of b2.--The term ``bilateral 
     pleural reaction 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) 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.
       (7) 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.
       (8) 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.
       (9) 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.
       (10) Nonsmoker.--The term ``nonsmoker'' means a claimant 
     who--
       (A) never smoked; or
       (B) has smoked fewer than 100 cigarettes or the equivalent 
     amount of other tobacco products during the claimant's 
     lifetime.
       (11) PO2.--The term ``PO2'' means the 
     partial pressure (tension) of oxygen, which measures the 
     amount of dissolved oxygen in the blood.
       (12) 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.
       (13) 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--

[[Page S1208]]

       (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 significant amounts of 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 
     significant amounts of asbestos fibers.
       (B) Regular basis.--In this paragraph, the term ``on a 
     regular basis'' means on a frequent or recurring basis.
       (14) TLC.--The term ``TLC'' means total lung capacity, 
     which is the total volume of air in the lung after maximal 
     inspiration.
       (15) 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 significant amounts 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 significant amounts of 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 significant 
     amounts of 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\ of its value. Each year 
     after 1986 shall be counted as \1/10\ of 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.
       (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 VIII, 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 VIII, 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.
       (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;
       (B) evidence of TLC less than 80 percent and 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 substantial 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 1/1 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 with a college of American 
     Pathologists National Institution for Occupational Safety and 
     Health level of 3 or 4;
       (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;
       (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 substantial 
     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 
     reaction 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;
       (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 substantial 
     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

[[Page S1209]]

     present in both lower lung zones, or asbestosis determined by 
     pathology;
       (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; or
       (ii) 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 substantial 
     contributing factor in causing the pulmonary condition in 
     question; and
       (ii) excluding other more likely causes of that pulmonary 
     condition.
       (6) Malignant level vi.--To receive Level VI compensation, 
     a claimant shall provide--
       (A) a diagnosis of a primary lung cancer disease on the 
     basis of findings by a board certified pathologist;
       (B)(i) a diagnosis by a board-certified pathologist of 
     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 
     evidence of 10 or more weighted years of substantial 
     occupational exposure to asbestos;
       (ii) a diagnosis by a board-certified pathologist of 
     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 evidence of 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
       (C) supporting medical documentation establishing asbestos 
     exposure as a substantial contributing factor in causing the 
     lung cancer in question.
       (7) Malignant level vii.--To receive Level VII 
     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; 
     or
       (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.
       (e) Smoking History.--In considering a claim with respect 
     to Level VI, the Corporation 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.

                           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 and 
     the matrices developed under 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 as determined under this 
     subsection. The award for all asbestos claimants with an 
     eligible disease or condition established in accordance with 
     section 121 shall be according to the following schedule:


       LevScheduled Condition or Disease  Scheduled Value
          ..............................  ..............................
      I    Asbestosis/Pleural Reaction A  Medical Monitoring
     II    Mixed Disease With Impairment  $20,000
    III    Asbestosis/Pleural Reaction B  $100,000
     IV    Severe Asbestosis............  $400,000
      V    Disabling Asbestosis.........  $850,000
     VI    Lung Cancer With Asbestosis..  mokers, $575,000;
                                          ex-smokers, $950,000;
                                          nonsmokers, $1,100,000
    VII    Mesothelioma.................  $1,100,000
 

       (2) Definitions.--In this section--
       (A) the term ``nonsmoker'' means a claimant who--
       (i) never smoked; or
       (ii) has smoked fewer than 100 cigarettes or the equivalent 
     of other tobacco products during the claimant's lifetime; 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) Cost-of-living adjustment.--
       (A) In general.--Beginning January 1, 2007, 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 2005.
       (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. REIMBURSABLE MEDICAL MONITORING.

       (a) Recipients.--Reimbursable Medical Monitoring is only 
     available to persons who have been approved for Level I 
     compensation under section 131.
       (b) 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).
       (c) Provider Charges.--All medical monitoring costs shall 
     be reimbursed in accordance with CPT codes at medicare rates 
     by region, at the time of the provision of services.
       (d) Procedures.--The Chief Executive Officer shall issue 
     written procedures applicable to asbestos claimants under 
     this section.

     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 Chief Executive Officer 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 Chief Executive Officer 
     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 Chief Executive Officer 
     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 Chief Executive Officer 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 that claimant is 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.

     SEC. 135. STATE LIEN LAWS.

       (a) In General.--Any award of compensation under this Act 
     shall be deemed a third-

[[Page S1210]]

     party judgment or settlement for purposes of any Federal or 
     State workers' compensation lien law.
       (b) Workers' Compensation.--
       (1) Benefits before enactment.--To the extent any workers' 
     compensation insurer, self-insured employer, or Federal 
     workers' compensation Chief Executive Officer elects to 
     assert any State statutory lien rights against any award of 
     compensation under this Act, it may not seek recovery from 
     any awards made to a claimant by the Fund for any workers' 
     compensation benefits paid before the date of enactment of 
     this Act.
       (2) Benefits on or after enactment.--
       (A) In general.--Upon acceptance or compromise of a 
     workers' compensation claim first made after the date of 
     enactment of this Act, or for any claim accepted or 
     compromised before the date of enactment of this Act where 
     future workers' compensation payments are due to be paid on 
     or after such date, a workers' compensation insurer or self-
     insured employer's obligation to make any further payments 
     shall not arise until such amount further due and owing 
     exceeds the total amount of the award paid to the claimant.
       (B) Annual amounts.--In the event the annual workers' 
     compensation benefits further due and owing exceed the annual 
     amount of the award paid to the claimant from the Fund, then 
     the workers' compensation insurer or self-insured employer 
     shall be obligated to pay the claimant the difference between 
     such annual workers' compensation benefit and the annual Fund 
     payment.
       (C) Other rules.--No workers' compensation insurer or self-
     insured employer shall seek recovery from any such award paid 
     to the claimant by the Fund. This subsection explicitly 
     preempts any Federal or State workers' compensation lien law 
     that is inconsistent with this subsection.

            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 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.--The total 
     payments required of all defendant participants over the life 
     of the Fund shall not exceed a sum equal to $90,000,000,000 
     less any bankruptcy trust credits under section 222(d). The 
     Chief Executive Officer 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 under section 524(g) of title 11, United States 
     Code. 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.--
       (A) In general.--In this subsection, the term ``bankrupt 
     business entity'' means a person that is not a natural person 
     that--
       (i) filed a petition for relief under chapter 11, of title 
     11, United States Code, before January 1, 2003;
       (ii) has not substantially consummated, as such term is 
     defined under section 1101(2) of title 11, United States 
     Code, a plan of reorganization as of the date of enactment of 
     this Act; and
       (iii) 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 after the date of 
     enactment of this Act, that asbestos liability was not the 
     sole or precipitating cause of the entity's chapter 11 
     filing.
       (B) Motion and related matters.--A motion under 
     subparagraph (A)(iii) 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.

     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

[[Page S1211]]

     information, if any, submitted by the entity and all other 
     facts and circumstances presented by an objecting party. Any 
     review of this determination shall be an expedited appeal and 
     limited to whether the decision was against the weight of the 
     evidence. Any appeal of a determination shall be an expedited 
     review to the United States Circuit Court of Appeals for the 
     circuit in which the bankruptcy is filed.
       (2) Proceeding with reorganization plan.--A bankrupt 
     business entity may proceed with the filing, solicitation, 
     confirmation, and consummation 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 the 
     bankruptcy court makes a favorable determination under 
     paragraph (1)(B), unless the bankruptcy court's determination 
     is overruled on appeal and all appeals are final. Such a 
     bankrupt business entity may continue to so proceed, 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 such confirmation is required to avoid 
     the liquidation or the need for further financial 
     reorganization of that entity; 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 determination required under paragraph (2), or if an 
     order confirming the plan is not entered 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, 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 under 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 under section 
     524(g) of title 11, United States Code, may be counted as a 
     contribution to the Fund.
       (d) Tiers II Through VI.--Except as provided in section 204 
     and subsection (b) of this section, 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.--Notwithstanding section 
     403(c)(3), any plan of reorganization, agreement, 
     understanding, or undertaking by any debtor (including any 
     pre-petition agreement, understanding, or undertaking that 
     requires future performance) or any third party under 
     paragraph (1), and any agreement, understanding, or 
     undertaking entered into in anticipation, contemplation, or 
     furtherance of a plan of reorganization, 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 such agreement, understanding, or undertaking.

     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.--
       (i) In general.--Each debtor included in Subtier 1 shall 
     pay on an annual basis 1.67024 percent of the debtor's 2002 
     revenues.
       (ii) Exception to payment percentage.--Notwithstanding 
     clause (i), a debtor in Subtier 1 shall pay, on an annual 
     basis, $500,000 if--

       (I) such debtor, including its direct or indirect majority-
     owned subsidiaries, has less than $10,000,000 in prior 
     asbestos expenditures;
       (II) at least 95 percent of such debtors revenues derive 
     from the provision of engineering and construction services; 
     and
       (III) such debtor, including its direct or indirect 
     majority-owned subsidiaries, never manufactured, sold, or 
     distributed asbestos-containing products in the stream of 
     commerce.

       (C) Other assets.--The Chief Executive Officer, at the sole 
     discretion of the Chief Executive Officer, may allow a 
     Subtier 1 debtor to satisfy its funding obligation under this 
     paragraph with assets other than cash if the Chief Executive 
     Officer 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 Chief Executive 
     Officer shall have the right to seek payment of all or any 
     portion of the entire

[[Page S1212]]

     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.
       (iii) Right of contribution.--

       (I) In general.--Notwithstanding any other provision of 
     this Act, if a direct or indirect majority-owned foreign 
     subsidiary of a debtor participant (with such relationship to 
     the debtor participant as determined on the date of enactment 
     of this Act) is or becomes subject to any foreign insolvency 
     proceedings, and such foreign direct or indirect-majority 
     owned subsidiary is liquidated in connection with such 
     foreign insolvency proceedings (or if the debtor 
     participant's interest in such foreign subsidiary is 
     otherwise canceled or terminated in connection with such 
     foreign insolvency proceedings), the debtor participant shall 
     have a claim against such foreign subsidiary or the estate of 
     such foreign subsidiary in an amount equal to the greater 
     of--

       (aa) the estimated amount of all current and future 
     asbestos liabilities against such foreign subsidiary; or
       (bb) the foreign subsidiary's allocable share of the debtor 
     participant's funding obligations to the Fund as determined 
     by such foreign subsidiary's allocable share of the debtor 
     participant's 2002 gross revenue.

       (II) Determination of claim amount.--The claim amount under 
     subclause (I) (aa) or (bb) shall be determined by a court of 
     competent jurisdiction in the United States.
       (III) Effect on payment obligation.--The right to, or 
     recovery under, any such claim shall not reduce, limit, 
     delay, or otherwise affect the debtor participant's payment 
     obligations under this Act.

       (iv) Maximum annual payment obligation.--Subject to any 
     payments under sections 204(l) and 222(c), and paragraphs 
     (3), (4), and (5) of this subsection, the annual payment 
     obligation by a debtor under subparagraph (B) of this 
     paragraph shall not exceed $80,000,000.
       (3) Subtier 2.--
       (A) In general.--Notwithstanding paragraph (2), all persons 
     that are debtors that have no material continuing business 
     operations, other than class action trusts under paragraph 
     (6), 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 unencumbered 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.
       (5) Calculation of unencumbered assets.--Unencumbered 
     assets shall be calculated as the Subtier 3 person's total 
     assets, excluding insurance-related assets, jointly held, in 
     trust or otherwise, with a defendant participant, less--
       (A) all allowable administrative expenses;
       (B) allowable priority claims under section 507 of title 
     11, United States Code; and
       (C) allowable secured claims.
       (6) 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 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 60 days 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: $27,500,000.
       (B) Subtier 2: $24,750,000.
       (C) Subtier 3: $22,000,000.
       (D) Subtier 4: $19,250,000.
       (E) Subtier 5: $16,500,000.
       (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: $16,500,000.
       (B) Subtier 2: $13,750,000.
       (C) Subtier 3: $11,000,000.
       (D) Subtier 4: $8,250,000.
       (E) Subtier 5: $5,500,000.
       (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: $3,850,000.
       (B) Subtier 2: $2,475,000.
       (C) Subtier 3: $1,650,000.
       (D) Subtier 4: $550,000.
       (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.
       (3) Other payment for certain persons and affiliated 
     groups.--
       (A) In general.--Notwithstanding any other provision of 
     this subsection, and if an adjustment authorized by this 
     subsection does not impair the overall solvency of the Fund, 
     any person or affiliated group within Tier VI whose required 
     subtier payment in any given year would exceed such person's 
     or group's average annual expenditure on settlements, and 
     judgments of asbestos disease-related claims over the 8 years 
     before the date of enactment of this Act shall make the 
     payment required of the immediately lower subtier or, if the 
     person's or group's average annual expenditures on 
     settlements and judgments over the 8 years before the date of 
     enactment of this Act is less than $100,000, shall not be 
     required to make a payment under this Act.
       (B) No further adjustment.--Any person or affiliated group 
     that receives an adjustment under this paragraph shall not be 
     eligible to receive any further adjustment under section 
     204(d).
       (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 Act of April 22, 1908 (45 U.S.C. 51 et 
     seq.), commonly known as the Employers' Liability Act, 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.

[[Page S1213]]

       (3) Subtier 1.--Each person or affiliated group in Tier VII 
     with revenues of $6,000,000,000 or more is included in 
     Subtier 1 and shall make annual payments of $11,000,000 to 
     the Fund.
       (4) Subtier 2.--Each person or affiliated group in Tier VII 
     with revenues of less than $6,000,000,000, but not less than 
     $4,000,000,000 is included in Subtier 2 and shall make annual 
     payments of $5,500,000 to the Fund.
       (5) Subtier 3.--Each person or affiliated group in Tier VII 
     with revenues of less than $4,000,000,000, but not less than 
     $500,000,000 is included in Subtier 3 and shall make annual 
     payments of $550,000 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 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.--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 30 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 subsections (d) and (m), 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 Chief Executive Officer shall 
     prescribe procedures on how amounts payable under this 
     subtitle are to be paid, including, to the extent the Chief 
     Executive Officer determines appropriate, procedures relating 
     to payment in installments.
       (d) Adjustments.--
       (1) In general.--Under expedited procedures established by 
     the Chief Executive Officer, a defendant participant may seek 
     adjustment of the amount of its payment obligation based on 
     severe financial hardship or demonstrated inequity. The Chief 
     Executive Officer 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 Chief Executive Officer's 
     determination under this subsection under the procedures 
     prescribed in subsection (i)(10). The Chief Executive Officer 
     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 Chief Executive Officer.
       (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), the Chief Executive Officer shall annually determine 
     whether there has been a material change in the financial 
     condition of the defendant participant such that the Chief 
     Executive Officer may, consistent with the policies and 
     legislative intent underlying this Act, reinstate under terms 
     and conditions established by the Chief Executive Officer 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 partici-
     pant--
       (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;
       (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;

       (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, and 
     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; and
       (iii) shall be granted a two-tier adjustment reducing the 
     defendant participant's payment obligation based on inequity 
     by demonstrating that not less than 95 percent of such 
     participant's prior asbestos expenditures arose from asbestos 
     claims based on successor liability arising from a merger to 
     which the participant or its predecessor was a party that 
     occurred at least 30 years before the date of enactment of 
     this Act, and that such prior asbestos expenditures exceed 
     the inflation-adjusted value of the assets of the company 
     from which such liability was derived in such merger, and 
     upon such demonstration the Chief Executive Officer shall 
     grant such adjustment for the life of the Fund and amounts 
     paid by such defendant participant prior to such adjustment 
     in excess of its adjusted payment obligation under this 
     clause shall be credited against next succeeding required 
     payment obligations.
       (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), the Chief Executive 
     Officer 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 Chief Executive Officer 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 Chief Executive Officer 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 Chief Executive Officer.
       (4) Limitation on payments by defendant participants.--
       (A) In general.--Under expedited procedures established by 
     the Chief Executive Officer, any defendant participant may 
     apply for a limitation on its annual payment obligation to 
     the Fund by showing that it qualifies under subparagraph (C). 
     The Chief Executive Officer shall promptly grant that 
     application if the requirements under subparagraph (C) are 
     satisfied.
       (B) Stay of payment.--A defendant participant who applies 
     for a limitation on its annual payment obligation to the Fund 
     under subparagraph (A) shall have the payment required under 
     subsection (i)(1)(A)(iv) stayed until the Chief Executive 
     Officer has made a determination with respect to the 
     application of that defendant participant.
       (C) Application for limitation.--A defendant participant 
     may apply under subparagraph (A) for a limit on its annual 
     payment obligation to the Fund if that defendant 
     participant--
       (i) is included in Tiers II, III, IV, V, or VI under 
     section 202; and

[[Page S1214]]

       (ii) has prior asbestos expenditures less than $200,000,000 
     or has revenues as determined under section 203 that are less 
     than $15,000,000,000.
       (D) Limitation.--
       (i) In general.--A defendant participant that qualifies for 
     a limitation under this paragraph may apply for only 1 of the 
     limits under subclause (I), (II), or (III) of clause (ii). A 
     defendant participant may not change its application once the 
     application has been approved by the Chief Executive Officer.
       (ii) Application for 1 limitation.--Subject to clause (i), 
     a defendant participant may apply for a limit of an amount 
     equal to--

       (I) 125 percent of the arithmetical average for fiscal 
     years 1998 through 2002 of the annual prior asbestos 
     expenditures of that defendant participant;
       (II) 150 percent of the arithmetical average for fiscal 
     years 1998 through 2002 of the annual prior asbestos 
     expenditures of that defendant participant, excluding--

       (aa) the amount of any payments by insurance carriers for 
     the benefit of that defendant participant or on behalf of 
     that defendant participant; and
       (bb) any reimbursements of the amounts actually paid by 
     that defendant participant with respect to prior asbestos 
     expenditures for fiscal years 1998 through 2002, regardless 
     of when such reimbursements were actually paid; or

       (III) 1.67024 percent of the revenues for the most recent 
     fiscal year ending on or prior to December 31, 2002, of the 
     affiliated group to which that defendant participant belongs.

       (E) Judicial review.--A defendant participant is entitled 
     to judicial review under section 303 of a denial of an 
     application under this paragraph. During the pendency of that 
     review, section 223(a) shall not apply to that defendant 
     participant. Without regard to section 305(a), the reviewing 
     court may, in its discretion, provide such interlocutory 
     relief to the defendant participant as may be just.
       (F) Applicability of the guarantee surcharge.--A defendant 
     participant whose application under this paragraph is 
     approved by the Chief Executive Officer, shall not be exempt 
     from the guaranteed payment surcharge established under 
     subsection (l), unless otherwise provided in this Act.
       (G) Minimum payment.--Notwithstanding any other provision 
     of this paragraph, a defendant participant that is granted a 
     limitation by the Chief Executive Officer shall pay not less 
     than 10 percent of the amount the participant is scheduled to 
     pay under section 202.
       (5) 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 $300,000,000, except to the 
     extent that--
       (A) 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); or
       (B) the Chief Executive Officer determines that the 
     $300,000,000 is insufficient and additional adjustments as 
     provided under paragraph (5) are needed to address situations 
     in which a defendant participant would otherwise be rendered 
     insolvent by its payment obligations without such adjustment.
       (6) Bankruptcy relief.--
       (A) In general.--Any defendant participant may apply for an 
     adjustment under this paragraph at any time during the period 
     in which a payment obligation to the Fund remains outstanding 
     and may qualify for such adjustment by demonstrating, to a 
     reasonable degree of certainty, evidence that the amount of 
     its payment obligation would render the defendant participant 
     insolvent, as defined under section 101 of title 11, United 
     States Code, and unable to pay its debts as they become due.
       (B) Information required.--Any defendant participant 
     seeking an adjustment or renewal of an adjustment under this 
     paragraph shall provide the Chief Executive Officer with the 
     information required under section 521(1) of title 11 of the 
     United States Code.
       (C) Limitation.--Any adjustment granted by the Chief 
     Executive Officer under subparagraph (A) shall be limited to 
     the extent reasonably necessary to prevent insolvency of a 
     defendant participant.
       (D) Term.--To the extent the Chief Executive Officer grants 
     any relief under this paragraph, such adjustments shall have 
     a term of 1 year. An adjustment may be renewed or modified on 
     an annual basis upon the defendant participant demonstrating 
     that the adjustment or modification remains justified under 
     this paragraph.
       (E) Reinstatement.--During the funding period prescribed 
     under subparagraph (A), the Chief Executive Officer shall 
     annually determine whether there has been a material change 
     in the financial condition of any defendant participant 
     granted an adjustment under this paragraph such that the 
     Chief Executive Officer may, consistent with the policies and 
     legislative intent underlying this Act, reinstate under terms 
     and conditions established by the Chief Executive Officer any 
     part or all of the defendant participant's payment obligation 
     under the statutory allocation that was not paid during the 
     adjustment term.
       (7) Advisory panels.--
       (A) Appointment.--The Chief Executive Officer shall appoint 
     a Financial Hardship Adjustment Panel and an Inequity 
     Adjustment Panel to advise the Chief Executive Officer 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 Chief Executive 
     Officer 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 
     Chief Executive Officer 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 Chief Executive 
     Officer'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 Chief 
     Executive Officer 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.
       (4) Treatment of certain expenditures.--Notwithstanding any 
     other provision of this Act, where--
       (A) an indemnitor entered into a stock purchase agreement 
     in 1988 that involved the sale of the stock of businesses 
     that produced friction and other products; and
       (B) the stock purchase agreement provided that the 
     indemnitor indemnified the indemnitee and its affiliates for 
     losses arising from various matters, including asbestos 
     claims--
       (i) asserted before the date of the agreement; and
       (ii) filed after the date of the agreement and prior to the 
     10-year anniversary of the stock sale,

     then the prior asbestos expenditures arising from the 
     asbestos claims described in clauses (i) and (ii) shall not 
     be for the account of either the indemnitor or indemnitee.
       (h) Minimum Annual Payments.--
       (1) In general.--The aggregate annual payments of defendant 
     participants to the

[[Page S1215]]

     Fund shall be at least $3,000,000,000 for each calendar year 
     in the first 30 years of the Fund, or until such shorter time 
     as the condition set forth in subsection (a)(2) is attained.
       (2) Guaranteed payment account.--To the extent payments in 
     accordance with sections 202 and 203 (as modified by 
     subsections (b), (d), (f), (g), and (m) of this section) fail 
     in any year to raise at least $3,000,000,000, after 
     applicable reductions or adjustments have been taken 
     according to subsections (d) and (m), 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, after 
     applicable reductions or adjustments have been taken 
     according to subsections (d) and (m), the Chief Executive 
     Officer shall unless the Chief Executive Officer implements a 
     funding holiday under section 205(b), 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 90 days after enactment of 
     this Act, each defendant participant that is included in 
     Tiers II, III, IV, V, or VI shall file with the Chief 
     Executive Officer--
       (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);
       (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; and
       (v) a signature page personally verifying the truth of the 
     statements and estimates described under this subparagraph, 
     as required under section 404 of the Sarbanes-Oxley Act of 
     2002 (15 U.S.C. 7201 et seq.).
       (B) Relief.--
       (i) In general.--The Chief Executive Officer shall 
     establish procedures to grant a defendant participant relief 
     from its initial payment obligation if the participant shows 
     that--

       (I) the participant is likely to qualify for a financial 
     hardship adjustment; and
       (II) failure to provide interim relief would cause severe 
     irreparable harm.

       (ii) Judicial relief.--The Chief Executive Officer's 
     refusal to grant relief under clause (i) is subject to 
     immediate judicial review under section 303.
       (2) Initial year: tier i.--Not later than 60 days after 
     enactment of this Act, each debtor shall file with the Chief 
     Executive Officer--
       (A) a statement identifying all bankruptcy cases 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--
       (i) a statement of the debtor's 2002 revenues, determined 
     in accordance with section 203(a)(2);
       (ii) for those debtors subject to the payment requirement 
     of section 203(b)(2)(B)(ii), a statement whether its prior 
     asbestos expenditures do not exceed $10,000,000, and a 
     description of its business operations sufficient to show the 
     requirements of that section are met; and
       (iii) 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; and
       (G) a signature page personally verifying the truth of the 
     statements and estimates described under this paragraph, as 
     required under section 404 of the Sarbanes-Oxley Act of 2002 
     (15 U.S.C. 7201 et seq.).
       (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 Chief Executive Officer--
       (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 Chief Executive Officer 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 a newspaper with a circulation of at least 
     500,000 and on the Internet a notice--
       (i) setting forth the criteria in this Act, and as 
     prescribed by the Chief Executive Officer 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; and
       (ii) that includes a list of all defendant participants 
     notified by the Chief Executive Officer under subparagraph 
     (A), and provides for 30 days for the submission by the 
     public of comments or information regarding the completeness 
     and accuracy of the list of identified defendant 
     participants.
       (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 Chief Executive Officer with an address to 
     send any notice from the Chief Executive Officer in 
     accordance with this Act and all the information required by 
     the Chief Executive Officer 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 in a newspaper with a 
     circulation of at least 500,000 and on the Internet.
       (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 
     Chief Executive Officer's audit authority under section 
     221(d).
       (6) Notice of initial determination.--
       (A) In general.--
       (i) Notice to individual.--Not later than 60 days after 
     receiving a response under paragraph (5), the Chief Executive 
     Officer 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 Chief 
     Executive Officer and identified to the defendant 
     participant.
       (ii) Public notice.--Not later than 7 days after sending 
     the notification of initial determination to defendant 
     participants, the Chief Executive Officer shall publish in a 
     newspaper with a circulation of at least 500,000 and on the 
     Internet a notice listing the defendant participants that 
     have been sent such notification, and the initial 
     determination identifying the tier and subtier assignment and 
     annual payment obligation of each identified 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 Chief Executive Officer.
       (C) Payments.--Within 30 days of receiving a notice of 
     initial determination requiring payment, the defendant 
     participant shall pay the Chief Executive Officer 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 Chief Executive Officer 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 Chief 
     Executive Officer'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 Chief Executive Officer 
     shall adopt procedures for requiring additional payment, or 
     refunding amounts already paid, based on new information 
     received.
       (B) Additional participant.--If the Chief Executive 
     Officer, at any time, receives information that an additional 
     person may qualify as a defendant participant, the Chief 
     Executive Officer 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 Chief Executive Officer 
     with respect to such person.
       (9) Subpoenas.--The Chief Executive Officer may request the 
     Attorney General to

[[Page S1216]]

     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 Chief Executive Officer's 
     determination under this subsection of the applicable tier or 
     subtier, of the Chief Executive Officer's determination under 
     subsection (d) of a financial hardship or inequity 
     adjustment, and of the Chief Executive Officer's 
     determination under subsection (m) of a distributor's 
     adjustment, if the request for rehearing is filed within 30 
     days after the defendant participant's receipt of notice from 
     the Chief Executive Officer of the determination. A defendant 
     participant may not file an action under section 303 unless 
     the defendant participant requests a rehearing under this 
     paragraph. The Chief Executive Officer shall publish in a 
     newspaper with a circulation of at least 500,000 and on the 
     Internet a notice of any change in a defendant participant's 
     tier or subtier assignment or payment obligation as a result 
     of a rehearing.
       (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 required under subsection (h), 
     excess monies up to a maximum of $300,000,000 in any such 
     year shall be placed in a defendant hardship and inequity 
     adjustment account established within the Fund by the Chief 
     Executive Officer.
       (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) 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) is met, 
     for any purpose that the Fund may serve under this Act.
       (3) Carryover of unused funds.--To the extent the Chief 
     Executive Officer 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 Chief 
     Executive Officer for adjustments in subsequent years.
       (k) Defendant Guaranteed Payment Account.--
       (1) In general.--Subject to subsections (h) and (j), if 
     there are excess monies paid by defendant participants in any 
     given year, including any bankruptcy trust credits that may 
     be due under section 222(d), such monies--
       (A) at the discretion of the Chief Executive Officer, 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 Chief Executive Officer.
       (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 required 
     under subsection (h), after applicable reductions or 
     adjustments have been taken according to subsections (d) and 
     (m) is reached each year; and
       (B) if the condition set forth in subsection (a)(2) is met, 
     for any purpose that the Fund may serve under this Act.
       (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 required under subsection (h) in any given 
     year, the Chief Executive Officer shall, unless the Chief 
     Executive Officer implements a funding holiday under section 
     205(b), impose on each defendant participant a surcharge as 
     necessary to raise the balance required to attain the minimum 
     aggregate annual payment required under subsection (h) 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), (g), and (m) of this section).
       (2) Limitation.--
       (A) In general.--In no case shall the Chief Executive 
     Officer impose a surcharge under this subsection on any 
     defendant participant included in Subtier 3 of Tiers V or VI 
     as described under section 203.
       (B) Reallocation.--Any amount not imposed under 
     subparagraph (A) shall be reallocated on a pro-rata basis, in 
     accordance with each defendant participant's (other than a 
     defendant participant described under subparagraph (A)) 
     relative annual liability under sections 202 and 203 (as 
     modified by subsections (b), (d), (f), and (g) of this 
     section).
       (3) Certification.--
       (A) In general.--Before imposing a guaranteed payment 
     surcharge under this subsection, the Chief Executive Officer 
     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 Chief Executive 
     Officer shall publish in a newspaper with a circulation of at 
     least 500,000 and on the Internet a notice of a proposed 
     certification and provide in such notice for a public comment 
     period of 30 days.
       (C) Final certification.--
       (i) In general.--The Chief Executive Officer shall publish 
     a notice of the final certification in a newspaper with a 
     circulation of at least 500,000 and on the Internet 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 
     Chief Executive Officer shall provide each defendant 
     participant with written notice of that defendant 
     participant's payment, including the amount of any surcharge.
       (m) Adjustments for Distributors.--
       (1) Definition.--In this subsection, the term 
     ``distributor'' means a person--
       (A) whose prior asbestos expenditures arise exclusively 
     from the sale of products manufactured by others;
       (B) who did not prior to December 31, 2002, sell raw 
     asbestos or a product containing more than 95 percent 
     asbestos by weight;
       (C) whose prior asbestos expenditures did not arise out 
     of--
       (i) the manufacture, installation, repair, reconditioning, 
     maintaining, servicing, constructing, or remanufacturing of 
     any product;
       (ii) the control of the design, specification, or 
     manufacture of any product; or
       (iii) the sale or resale of any product under, as part of, 
     or under the auspices of, its own brand, trademark, or 
     service mark; and
       (D) who is not subject to assignment under section 202 to 
     Tier I, II, III or VII.
       (2) Tier reassignment for distributors.--
       (A) In general.--Notwithstanding section 202, the Chief 
     Executive Officer shall assign a distributor to a Tier for 
     purposes of this title under the procedures set forth in this 
     paragraph.
       (B) Designation.--After a final determination by the Chief 
     Executive Officer under section 204(i), any person who is, or 
     any affiliated group in which every member is, a distributor 
     may apply to the Chief Executive Officer for adjustment of 
     its Tier assignment under this subsection. Such application 
     shall be prepared in accordance with such procedures as the 
     Chief Executive Officer shall promulgate by rule. Once the 
     Chief Executive Officer designates a person or affiliated 
     group as a distributor under this subsection, such 
     designation and the adjustment of tier assignment under this 
     subsection are final.
       (C) Payments.--Any person or affiliated group that seeks 
     adjustment of its Tier assignment under this subsection shall 
     pay all amounts required of it under this title until a final 
     determination by the Chief Executive Officer is made under 
     this subsection. Such payments may not be stayed pending any 
     appeal. The Chief Executive Officer shall grant any person or 
     affiliated group a refund or credit of any payments made if 
     such adjustment results in a lower payment obligation.
       (D) Adjustment.--Subject to paragraph (3), any person or 
     affiliated group that the Chief Executive Officer has 
     designated as a distributor under this subsection shall be 
     given an adjustment of Tier assignment as follows:
       (i) A distributor that but for this subsection would be 
     assigned to Tier IV shall be deemed assigned to Tier V.
       (ii) A distributor that but for this subsection would be 
     assigned to Tier V shall be deemed assigned to Tier VI.
       (iii) A distributor that but for this subsection would be 
     assigned to Tier VI shall be deemed assigned to no Tier and 
     shall have no obligation to make any payment to the Fund 
     under this Act.
       (E) Exclusive to inequity adjustment.--Any person or 
     affiliated group designated by the Chief Executive Officer as 
     a distributor under this subsection shall not be eligible for 
     an inequity adjustment under subsection 204(d).
       (3) Limitation on adjustments.--The aggregate total of 
     distributor adjustments under this subsection in effect in 
     any given year shall not exceed $50,000,000. If the aggregate 
     total of distributors adjustments under this subsection would 
     otherwise exceed $50,000,000, then each distributor's 
     adjustment shall be reduced pro rata until the aggregate of 
     all adjustments equals $50,000,000.
       (4) Rehearing.--A defendant participant has a right to 
     obtain a rehearing of the Chief Executive Officer's 
     determination on an adjustment under this subsection under 
     the procedures prescribed in subsection (i)(10).

     SEC. 205. STEPDOWNS AND FUNDING HOLIDAYS.

       (a) Stepdowns.--
       (1) In general.--Subject to paragraph (2), the minimum 
     aggregate annual funding obligation under section 204(h) 
     shall be reduced by 10 percent of the initial minimum 
     aggregate funding obligation at the end of the tenth, 
     fifteenth, twentieth, and twenty-fifth years after the date 
     of enactment of this Act. The reductions under this paragraph 
     shall be applied on an equal pro rata basis to the funding 
     obligations of all defendant participants, except with 
     respect to defendant

[[Page S1217]]

     participants in Tier 1, Subtiers 2 and 3, and class action 
     trusts.
       (2) Limitation.--The Chief Executive Officer shall suspend, 
     cancel, reduce, or delay any reduction under paragraph (1) if 
     at any time the Chief Executive Officer finds, in accordance 
     with subsection (c), that such action is necessary and 
     appropriate to ensure that the assets of the Fund and 
     expected future payments remain sufficient to satisfy the 
     Fund's anticipated obligations.
       (b) Funding Holidays.--
       (1) In general.--If the Chief Executive Officer determines, 
     at any time after 10 years following the date of enactment of 
     this Act, that the assets of the Fund at the time of such 
     determination and expected future payments, taking into 
     consideration any reductions under subsection (a), are 
     sufficient to satisfy the Fund's anticipated obligations 
     without the need for all, or any portion of, that year's 
     payment otherwise required under this subtitle, the Chief 
     Executive Officer shall reduce or waive all or any part of 
     the payments required from defendant participants for that 
     year.
       (2) Annual review.--The Chief Executive Officer shall 
     undertake the review required by this subsection and make the 
     necessary determination under paragraph (1) every year.
       (3) Limitations on funding holidays.--Any reduction or 
     waiver of the defendant participants' funding obligations 
     shall--
       (A) be made only to the extent the Chief Executive Officer 
     determines that the Fund will still be able to satisfy all of 
     its anticipated obligations; and
       (B) be applied on an equal pro rata basis to the funding 
     obligations of all defendant participants, except with 
     respect to defendant participants in Subtiers 2 and 3 of Tier 
     I and class action trusts, for that year.
       (4) New information.--If at any time the Chief Executive 
     Officer determines that a reduction or waiver under this 
     section may cause the assets of the Fund and expected future 
     payments to decrease to a level at which the Fund may not be 
     able to satisfy all of its anticipated obligations, the Chief 
     Executive Officer shall revoke all or any part of such 
     reduction or waiver to the extent necessary to ensure that 
     the Fund's obligations are met. Such revocations shall be 
     applied on an equal pro rata basis to the funding obligations 
     of all defendant participants, except defendant participants 
     in Subtiers 2 and 3 of Tier I and class action trusts, for 
     that year.
       (c) Certification.--
       (1) In general.--Before suspending, canceling, reducing, or 
     delaying any reduction under subsection (a) or granting or 
     revoking a reduction or waiver under subsection (b), the 
     Chief Executive Officer shall certify that the requirements 
     of this section are satisfied.
       (2) Notice and comment.--Before making a final 
     certification under this subsection, the Chief Executive 
     Officer shall publish in a newspaper with a circulation of at 
     least 500,000 and on the Internet a proposed certification 
     and a statement of the basis therefor and provide in such 
     notice for a public comment period of 30 days.
       (3) Final certification.--
       (A) In general.--The Chief Executive Officer shall publish 
     a notice of the final certification in a newspaper with a 
     circulation of at least 500,000 and on the Internet after 
     consideration of all comments submitted under paragraph (2).
       (B) Written notice.--Not later than 30 days after 
     publishing any final certification under subparagraph (A), 
     the Chief Executive Officer shall provide each defendant 
     participant with written notice of that defendant's funding 
     obligation for that year.

     SEC. 206. ACCOUNTING TREATMENT.

       Defendant participants payment obligations to the Fund 
     shall be subject to discounting under the applicable 
     accounting guidelines for generally accepted accounting 
     purposes and statutory accounting purposes for each defendant 
     participant. This section shall in no way reduce the amount 
     of monetary payments to the Fund by defendant participants as 
     required under section 202(a)(2).

                Subtitle B--Asbestos Insurers Committee

     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, 2003.

     SEC. 211. ESTABLISHMENT OF ASBESTOS INSURERS COMMITTEE.

       (a) Establishment.--There is established the Asbestos 
     Insurers Committee (referred to in this subtitle as the 
     ``Committee'') to carry out the duties described in section 
     212.
       (b) Membership.--
       (1) Appointment.--The Committee 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 Committee shall have 
     sufficient expertise to fulfill their responsibilities under 
     this subtitle.
       (B) Conflict of interest.--
       (i) In general.--No member of the Committee appointed under 
     paragraph (1) may be an employee or immediate family member 
     of an employee of an insurer participant. No member of the 
     Committee shall be a shareholder of any insurer participant. 
     No member of the Committee shall be a former officer or 
     director, or a former employee or former shareholder of any 
     insurer participant who was such an employee, shareholder, 
     officer, or director at any time during the 2-year period 
     ending on the date of the appointment, unless that is fully 
     disclosed before consideration in the Senate of the 
     nomination for appointment to the Committee.
       (ii) Definition.--In clause (i), the term ``shareholder'' 
     shall not include a broadly based mutual fund that includes 
     the stocks of insurer participants as a portion of its 
     overall holdings.
       (C) Federal employment.--A member of the Committee may not 
     be an officer or employee of the Federal Government, except 
     by reason of membership on the Committee.
       (3) Period of appointment.--Members shall be appointed for 
     the life of the Committee.
       (4) Vacancies.--Any vacancy in the Committee shall be 
     filled in the same manner as the original appointment.
       (5) Chairman.--The President shall select a Chairman from 
     among the members of the Committee.
       (c) Meetings.--
       (1) Initial meeting.--Not later than 30 days after the date 
     on which all members of the Committee have been appointed, 
     the Committee shall hold its first meeting.
       (2) Subsequent meetings.--The Committee 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 
     Committee.

     SEC. 212. DUTIES OF ASBESTOS INSURERS COMMITTEE.

       (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 
     Committee shall determine the amount that each insurer 
     participant shall be required to pay into the Fund under the 
     procedures described in this section. The Committee 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 Committee's rule 
     shall include a methodology for adjusting payments by insurer 
     participants to make up, during the first 5 years of the life 
     of the Fund and any subsequent years as provided in section 
     405(e) for any reduction in an insurer participant's annual 
     allocated amount caused by the granting of a financial 
     hardship or exceptional circumstance adjustment under this 
     section, and any amount by which aggregate insurer payments 
     fall below the level required under paragraph (3)(C) by 
     reason of the failure or refusal of any insurer participant 
     to make a required payment, or for any other reason that 
     causes such payments to fall below the level required under 
     paragraph (3)(C). The Committee shall conduct a thorough 
     study (within the time limitations under this subparagraph) 
     of the accuracy of the reserve allocation of each insurer 
     participant, and may request information from the Securities 
     and Exchange Committee or any State regulatory agency. Under 
     this procedure, not later than 120 days after the initial 
     meeting of the Committee, the Committee 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 
     Committee may consult with such actuaries and other experts 
     as it deems appropriate. After hearings and public comment on 
     the proposed allocation methodology, the Committee shall as 
     promptly as possible promulgate a final rule establishing 
     such methodology. After promulgation of the final rule, the 
     Committee 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 Committee's and Chief Executive Officer'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 Committee's and 
     Chief Executive Officer'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 
     Chief Executive Officer. Any insurer participant refusing to 
     provide a written consent shall be subject to fines and 
     penalties as provided in section 223.
       (D) Issuers of finite risk policies.--

[[Page S1218]]

       (i) In general.--The issuer of any policy of retrospective 
     reinsurance purchased by an insurer participant or its 
     affiliate after 1990 that provides for a risk or loss 
     transfer to insure for asbestos losses and other losses (both 
     known and unknown), including those policies commonly 
     referred to as ``finite risk'', ``aggregate stop loss'', 
     ``aggregate excess of loss'', or ``loss portfolio transfer'' 
     policies, shall be obligated to make payments required under 
     this Act directly to the Fund on behalf of the insurer 
     participant who is the beneficiary of such policy, subject to 
     the underlying retention and the limits of liability 
     applicable to such policy.
       (ii) Payments.--Payments to the Fund required under this 
     Act shall be treated as loss payments for asbestos bodily 
     injury (as if such payments were incurred as liabilities 
     imposed in the tort system) and shall not be subject to 
     exclusion under policies described under clause (i) as a 
     liability with respect to tax or assessment. Within 90 days 
     after the scheduled date to make an annual payment to the 
     Fund, the insurer participant shall, at its discretion, 
     direct the reinsurer issuing such policy to pay all or a 
     portion of the annual payment directly to the Fund up to the 
     full applicable limits of liability under the policy. The 
     reinsurer issuing such policy shall be obligated to make such 
     payments directly to the Fund and shall be subject to the 
     enforcement provisions under section 223. The insurer 
     participant shall remain obligated to make payment to the 
     Fund of that portion of the annual payment not directed to 
     the issuer of such reinsurance policy.
       (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, less any bankruptcy 
     trust credits under section 222(d).
       (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 Committee 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 of criteria.--
       (A) Inclusion in insurer participant category.--
       (i) In general.--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.
       (ii) Inapplicability of section 202.--Since insurers may be 
     subject in certain jurisdictions to direct action suits, and 
     it is not the intent of this Act to impose upon an insurer, 
     due to its operation as an insurer, payment obligations to 
     the Fund in situations where the insurer is the subject of a 
     direct action, no insurer subject to mandatory payments under 
     this section shall also be liable for payments to the Fund as 
     a defendant participant under section 202.
       (B) Insurer participant allocation methodology.--
       (i) In general.--The Committee 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 Committee may determine is 
     relevant and appropriate.

       (ii) Determination of reserves.--The Committee 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 years 1 and 2, $2,700,000,000 annually.
       (ii) For years 3 through 5, $5,075,000,000 annually.
       (iii) For years 6 through 27, $1,147,000,000 annually.
       (iv) For year 28, $166,000,000.
       (D) Certain runoff entities.--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 
     Committee'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 Committee'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 subparagraphs (A) and 
     (C) of subsection (b)(4); or
       (III) other exceptional circumstances.

     The Committee may determine whether to grant an adjustment 
     and the size of any such adjustment, but except as provided 
     under paragraph (1)(B), subsection (f)(3), and section 
     405(e), any such adjustment shall not affect the aggregate 
     payment obligations of insurer participants specified in 
     paragraph (2)(A) and subparagraph (C) of this paragraph.
       (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 
     Chief Executive Officer that it remains justified.
       (F) Funding holidays.--
       (i) In general.--If the Chief Executive Officer determines, 
     at any time after 10 years following the date of enactment of 
     this Act, that the assets of the Fund at the time of such 
     determination and expected future payments are sufficient to 
     satisfy the Fund's anticipated obligations without the need 
     for all, or any portion of, that year's payment otherwise 
     required under this subtitle, the Chief Executive Officer 
     shall reduce or waive all or any part of the payments 
     required from insurer participants for that year.
       (ii) Annual review.--The Chief Executive Officer shall 
     undertake the review required by this subsection and make the 
     necessary determination under clause (i) every year.
       (iii) Limitations of funding holidays.--Any reduction or 
     waiver of the insurer participants' funding obligations 
     shall--

       (I) be made only to the extent the Chief Executive Officer 
     determines that the Fund will still be able to satisfy all of 
     its anticipated obligations; and
       (II) be applied on an equal pro rata basis to the funding 
     obligations of all insurer participants for that year.

       (iv) New information.--If at any time the Chief Executive 
     Officer determines that a reduction or waiver under this 
     section may cause the assets of the Fund and expected future 
     payments to decrease to a level at which the Fund may not be 
     able to satisfy all of its anticipated obligations, the Chief 
     Executive Officer shall revoke all or any part of such 
     reduction or waiver to the extent necessary to ensure that 
     the Fund's obligations are met. Such revocations shall be 
     applied on an equal pro rata basis to the funding obligations 
     of all insurer participants for that year.
       (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 Committee 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 a newspaper with a circulation of at least 
     500,000 and on the Internet a notice--
       (i) requiring any person who may be an insurer participant 
     (as determined by criteria outlined in the notice) to submit 
     such information; and
       (ii) that includes a list of all insurer participants 
     notified by the Committee under subparagraph (A), and 
     provides for 30 days

[[Page S1219]]

     for the submission of comments or information regarding the 
     completeness and accuracy of the list of identified insurer 
     participants.
       (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 Committee with all the 
     information requested in the notice under a schedule or by a 
     date established by the Committee.
       (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.--
       (i) Notice to insurers.--Not later than 120 days after 
     receipt of the information required by paragraph (2), the 
     Committee 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 Committee'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.
       (ii) Public notice.--Not later than 7 days after sending 
     the notification of initial determination to insurer 
     participants, the Committee shall publish in a newspaper with 
     a circulation of at least 500,000 and on the Internet a 
     notice listing the insurer participants that have been sent 
     such notification, and the initial determination on the 
     payment obligation of each identified participant.
       (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 Committee.
       (4) Committee 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 Committee, an insurer participant may provide the 
     Committee with additional information to support 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 Committee, the Committee receives 
     information that an additional person may qualify as an 
     insurer participant, the Committee 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 Committee 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 Committee 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 Committee for purposes of 
     determining participant payments.
       (B) Subpoenas.--The Committee 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 date of 
     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 Committee 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 Committee 
     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 the Committee.
       (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 Committee 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 Committee under this subtitle shall, with 
     respect to participants who are parties to a certified 
     allocation agreement, terminate on the day after the 
     Committee certifies such agreement. Under subsection (f), the 
     Chief Executive Officer shall assume responsibility, if 
     necessary, for calculating the individual payment obligations 
     of participants who are parties to the certified agreement.
       (d) Committee Report.--
       (1) Recipients.--Until the work of the Committee has been 
     completed and the Committee terminated, the Committee 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 Chief Executive Officer.
       (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) Amount of interim payment.--Within 90 days after the 
     date of enactment of this Act, insurer participants shall 
     make an aggregate payment to the Fund not to exceed 50 
     percent of the aggregate funding obligation specified under 
     subsection (a)(3)(C) for year 1.
       (2) Reserve information.--Within 30 days after the date of 
     enactment of this Act, each insurer participant shall submit 
     to the Chief Executive Officer a certified statement of its 
     net held reserves for asbestos liabilities as of December 31, 
     2004.
       (3) Allocation of interim payment.--The Chief Executive 
     Officer shall allocate the interim payment among the 
     individual insurer participants on an equitable basis using 
     the net held asbestos reserve information provided by insurer 
     participants under subsection (a)(3)(B). Within 60 days after 
     the date of enactment of this Act, the Chief Executive 
     Officer shall publish in a newspaper with a circulation of at 
     least 500,000 and on the Internet the name of each insurer 
     participant, and the amount of the insurer participant's 
     allocated share of the interim payment. The use of net held 
     asbestos reserves as the basis to determine an interim 
     allocation shall not be binding on the Chief Executive 
     Officer in the determination of an appropriate final 
     allocation methodology under this section. All payments 
     required under this paragraph shall be credited against the 
     participant's ultimate payment obligation to the Fund 
     established by the Committee. 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 Chief 
     Executive Officer. 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 under 
     subsection (a)(3)(E).
       (4) Appeal of interim payment decisions.--A decision by the 
     Chief Executive Officer 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 Committee to the Chief 
     Executive Officer.--
       (1) In general.--Upon termination of the Committee under 
     section 215, the Chief Executive Officer shall assume all the 
     responsibilities and authority of the Committee, except that 
     the Chief Executive Officer shall not have the power to 
     modify the allocation methodology established by the 
     Committee or by certified agreement or to promulgate a rule 
     establishing any such methodology.
       (2) Financial hardship and exceptional circumstance 
     adjustments.--Upon termination of the Committee under section 
     215, the Chief Executive Officer 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 Chief Executive Officer

[[Page S1220]]

     shall increase the payments, consistent with subsection 
     (a)(1)(B), 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) Credits for shortfall assessments.--If insurer 
     participants are required during the first 5 years of the 
     life of the Fund to make up any shortfall in required insurer 
     payments under subsection (a)(1)(B), then, beginning in year 
     6, the Chief Executive Officer shall grant each insurer 
     participant a credit against its annual required payments 
     during the applicable years that in the aggregate equal the 
     amount of shortfall assessments paid by such insurer 
     participant during the first 5 years of the life of the Fund. 
     The credit shall be prorated over the same number of years as 
     the number of years during which the insurer participant paid 
     a shortfall assessment. Insurer participants which did not 
     pay all required payments to the Fund during the first 5 
     years of the life of the Fund shall not be eligible for a 
     credit. The Chief Executive Officer shall not grant a credit 
     for shortfall assessments imposed under section 405(e).
       (4) 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 Chief Executive Officer 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 Chief Executive Officer; 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) Accounting Treatment.--Insurer participants' payment 
     obligations to the Fund shall be subject to discounting under 
     the applicable accounting guidelines for generally accepted 
     accounting purposes and statutory accounting purposes for 
     each insurer participant. This subsection shall in no way 
     reduce the amount of monetary payments to the Fund by insurer 
     participants as required under subsection (a).
       (h) Judicial Review.--The Committee'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 COMMITTEE.

       (a) Rulemaking.--The Committee 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 Committee may hold such hearings, sit 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Committee considers advisable to 
     carry out this Act. The Committee shall also hold a hearing 
     on any proposed regulation establishing an allocation 
     methodology, before the Committee's adoption of a final 
     regulation.
       (c) Information From Federal and State Agencies.--The 
     Committee may secure directly from any Federal or State 
     department or agency such information as the Committee 
     considers necessary to carry out this Act. Upon request of 
     the Chairman of the Committee, the head of such department or 
     agency shall furnish such information to the Committee.
       (d) Postal Services.--The Committee 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 Committee may not accept, use, or dispose 
     of gifts or donations of services or property.
       (f) Expert Advice.--In carrying out its responsibilities, 
     the Committee may enter into such contracts and agreements as 
     the Committee determines necessary to obtain expert advice 
     and analysis.

     SEC. 214. PERSONNEL MATTERS.

       (a) Compensation of Members.--Each member of the Committee 
     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 Committee.
       (b) Travel Expenses.--The members of the Committee 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 Committee.
       (c) Staff.--
       (1) In general.--The Chairman of the Committee 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 Committee to 
     perform its duties. The employment of an executive director 
     shall be subject to confirmation by the Committee.
       (2) Compensation.--The Chairman of the Committee 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 Committee 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 Committee 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 COMMITTEE.

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

     SEC. 216. EXPENSES AND COSTS OF COMMITTEE.

       All expenses of the Committee 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);
       (4) the remaining obligations to the asbestos trust of a 
     debtor and the class action trust under section 405(f)(8); 
     and
       (5) administrative expenses to carry out the provisions of 
     this Act.
       (b) Borrowing Authority.--
       (1) In general.--The Chief Executive Officer 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 Chief Executive Officer 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 Chief Executive Officer 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 Chief 
     Executive Officer's duties under this Act for the first 5 
     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 during 
     the subsequent 10 years.
       (4) Repayment obligations.--Repayment of monies borrowed by 
     the Chief Executive Officer under this subsection shall be 
     repaid in full by the Fund contributors and is limited solely 
     to amounts available, present or future, in the Fund.
       (c) Lockbox for Severe Asbestos-Related Injury Claimants.--
       (1) In general.--Within the Fund, the Chief Executive 
     Officer 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 IX.
       (B) A Lung Cancer Account, which shall be used solely to 
     make payments to claimants eligible for an award under the 
     criteria of Level VIII.
       (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 Chief Executive Officer 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 Chief Executive Officer 
     shall determine an appropriate

[[Page S1221]]

     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 Chief Executive Officer 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 Chief Executive Officer may 
     determine proper, to appear before the Chief Executive 
     Officer 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 Chief Executive Officer determines that 
     materially false, fraudulent, or fictitious statements or 
     practices have been submitted or engaged in by persons 
     submitting information to the Chief Executive Officer or to 
     the Asbestos Insurers Committee or any other person who 
     provides evidence in support of such submissions for purposes 
     of determining payment obligations under this Act, the Chief 
     Executive Officer 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 Chief Executive Officer shall 
     promulgate appropriate regulations to implement this 
     paragraph.
       (e) Identity of Certain Defendant Participants; 
     Transparency.--
       (1) Submission of information.--Not later than 60 days 
     after the date of enactment of this Act, any person who, 
     acting in good faith, has knowledge that such person or such 
     person's affiliated group has prior asbestos expenditures of 
     $1,000,000 or greater, shall submit to the Chief Executive 
     Officer--
       (A) either the name of such person, or such person's 
     ultimate parent; and
       (B) the likely tier to which such person or affiliated 
     group may be assigned under this Act.
       (2) Publication.--Not later than 20 days after the end of 
     the 60-day period referred to in paragraph (1), the Chief 
     Executive Officer shall publish in a newspaper with a 
     circulation of at least 500,000 and on the Internet a list of 
     submissions required by this subsection, including the name 
     of such persons or ultimate parents and the likely tier to 
     which such persons or affiliated groups may be assigned. 
     After publication of such list, any person who, acting in 
     good faith, has knowledge that any other person has prior 
     asbestos expenditures of $1,000,000 or greater may submit to 
     the Chief Executive Officer information on the identity of 
     that person and the person's prior asbestos expenditures.
       (f) 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 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 Chief Executive Officer 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 Chief Executive Officer 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) Bankruptcy Trust Guarantee.--
       (1) In general.--Notwithstanding any other provision of 
     this Act, the Chief Executive Officer shall have the 
     authority to impose a pro rata surcharge on all participants 
     under this subsection to ensure the liquidity of the Fund, 
     if--
       (A) the declared assets from 1 or more bankruptcy trusts 
     established under a plan of reorganization confirmed and 
     substantially consummated on or before July 31, 2004, are not 
     available to the Fund because a final judgment that has been 
     entered by a court and is no longer subject to any appeal or 
     review has enjoined the transfer of assets required under 
     section 524(j)(2) of title 11, United States Code (as amended 
     by section 402(f) of this Act); and
       (B) borrowing is insufficient to assure the Fund's ability 
     to meet its obligations under this Act such that the required 
     borrowed amount is likely to increase the risk of termination 
     of this Act under section 405 based on reasonable claims 
     projections.
       (2) Allocation.--Any surcharge imposed under this 
     subsection shall be imposed over a period of 5 years on a pro 
     rata basis upon all participants, in accordance with the 
     relative aggregate funding obligations under sections 
     202(a)(2) and 212(a)(2)(A).
       (3) Certification.--
       (A) In general.--Before imposing a surcharge under this 
     subsection, the Chief Executive Officer shall publish in a 
     newspaper with a circulation of at least 500,000 and on the 
     Internet a notice and provide in such notice for a public 
     comment period of 30 days.
       (B) Contents of notice.--The notice required under 
     subparagraph (A) shall include--
       (i) information explaining the circumstances that make a 
     surcharge necessary and a certification that the requirements 
     under paragraph (1) are met;
       (ii) the amount of the declared assets from any trust 
     established under a plan of reorganization confirmed and 
     substantially consummated on or before July 31, 2004, that 
     was not made, or is no longer, available to the Fund;
       (iii) the total aggregate amount of the necessary 
     surcharge; and
       (iv) the surcharge amount for each tier and subtier of 
     defendant participants and for each insurer participant.
       (C) Final notice.--The Chief Executive Officer shall 
     publish in a newspaper with a circulation of at least 500,000 
     and on the Internet a final notice and provide each 
     participant with written notice of that participant's 
     schedule of payments under this subsection. In no event shall 
     any required surcharge under this subsection be due before 60 
     days after the Chief Executive Officer publishes the final 
     notice in a newspaper with a circulation of at least 500,000 
     and on the Internet and provides each participant with 
     written notice of its schedule of payments.
       (4) Maximum amount.--In no event shall the total aggregate 
     surcharge imposed by the Chief Executive Officer exceed the 
     lesser of--
       (A) the total aggregate amount of the declared assets of 
     the trusts established under a plan of reorganization 
     confirmed and substantially consummated prior to July 31, 
     2004, that are no longer available to the Fund; or
       (B) $4,000,000,000.
       (5) Declared assets.--
       (A) In general.--In this subsection, the term ``declared 
     assets'' means--
       (i) the amount of assets transferred by any trust 
     established under a plan of reorganization confirmed and 
     substantially consummated on or before July 31, 2004, to the 
     Fund that is required to be returned to that trust under the 
     final judgment described in paragraph (1)(A); or
       (ii) if no assets were transferred by the trust to the 
     Fund, the amount of assets the Chief Executive Officer 
     determines would have been available for transfer to the Fund 
     from that trust under section 402(f).
       (B) Determination.--In making a determination under 
     subparagraph (A)(ii), the Chief Executive Officer may rely on 
     any information reasonably available, and may request, and 
     use subpoena authority of the Chief Executive Officer if 
     necessary to obtain, relevant information from any such trust 
     or its trustees.
       (d) Bankruptcy Trust Credits.--
       (1) In general.--Notwithstanding any other provision of 
     this Act, but subject to paragraph (2) of this subsection, 
     the Chief Executive Officer shall provide a credit toward the 
     aggregate payment obligations under sections 202(a)(2) and 
     212(a)(2)(A) for assets received by the Fund from any 
     bankruptcy trust established under a plan of reorganization 
     confirmed and substantially consummated after July 31, 2004.
       (2) Allocation of credits.--The Chief Executive Officer 
     shall allocate, for each such bankruptcy trust, the credits 
     for such assets between the defendant and insurer aggregate 
     payment obligations as follows:
       (A) Defendant participants.--The aggregate amount that all 
     persons other than insurers contributing to the bankruptcy 
     trust would have been required to pay as Tier I defendants 
     under section 203(b) if the plan of reorganization under 
     which the bankruptcy trust was established had not been 
     confirmed and substantially consummated and the proceeding 
     under chapter 11 of title 11, United States Code, that 
     resulted in the establishment of the bankruptcy trust had 
     remained pending as of the date of enactment of this Act.

[[Page S1222]]

       (B) Insurer participants.--The aggregate amount of all 
     credits to which insurers are entitled to under section 
     202(c)(4)(A) of the Act.

     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 Chief Executive Officer, after demand 
     and a 30-day 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 Chief Executive Officer may bring a civil action in 
     any appropriate United States District Court, 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 
     Chief Executive Officer 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 Chief 
     Executive Officer 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 Chief Executive Officer 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 Chief Executive Officer 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 Chief 
     Executive Officer 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 Chief Executive Officer's reasonable requests for 
     assistance in any such proceeding. The positions taken or 
     statements made by the Chief Executive Officer 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 Chief 
     Executive Officer 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 pay any contribution required by this 
     Act, then, in addition to any other penalties imposed by this 
     Act, the Chief Executive Officer shall 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 unless and until it complies. If any direct 
     insurer or reinsurer refuses to furnish any information 
     requested by the Chief Executive Officer, the Chief Executive 
     Officer 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 
     unless and until it complies. 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 Chief Executive Officer 
     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 Chief Executive Officer 
     may issue an order barring any direct insurer participant 
     from receiving credit for reinsurance purchased from the 
     defaulting reinsurer after the date of the Chief Executive 
     Officer's determination of default. 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 Chief Executive Officer 
     or the Asbestos Insurers Committee 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 2006.''.
       (j) Proposed Transactions.--
       (1) Notice of proposed transaction.--Any participant that 
     has taken any action to effectuate a proposed transaction or 
     a proposed series of transactions under which a significant 
     portion of such participant's assets, properties or business 
     will, if consummated as proposed, be, directly or indirectly, 
     transferred by any means (including, without limitation, by 
     sale, dividend, contribution to a subsidiary or split-off) to 
     1 or more persons other than the participant shall provide 
     written notice to the Chief Executive Officer of such 
     proposed transaction (or proposed series of transactions). 
     Upon the request of such participant, and for so long as the 
     participant shall not publicly disclose the transaction or 
     series of transactions and the Chief Executive Officer shall 
     not commence any action under paragraph (6), the Chief 
     Executive Officer shall treat any such notice as confidential 
     commercial information under section 552 of title 5, United 
     States Code.
       (2) Timing of notice and related actions.--
       (A) In general.--Any notice that a participant is required 
     to give under paragraph (1) shall be given not later than 30 
     days before the date of consummation of the proposed 
     transaction or the first transaction to occur in a proposed 
     series of transactions.
       (B) Other notifications.--
       (i) In general.--Not later than the date in any year by 
     which a participant is required to make its contribution to 
     the Fund, the participant shall deliver to the Chief 
     Executive Officer a written certification stating that--

       (I) the participant has complied during the period since 
     the last such certification or the date of enactment of this 
     Act with the notice requirements set forth in this 
     subsection; or
       (II) the participant was not required to provide any notice 
     under this subsection during such period.

       (ii) Summary.--The Chief Executive Officer shall include in 
     the annual report required to be submitted to Congress under 
     section 405 a summary of all such notices (after removing all 
     confidential identifying information) received during the 
     most recent fiscal year.
       (C) Notice completion.--The Chief Executive Officer shall 
     not consider any notice given under paragraph (1) as given 
     until such time as the Chief Executive Officer receives

[[Page S1223]]

     substantially all the information required by this 
     subsection.
       (3) Contents of notice.--
       (A) In general.--The Chief Executive Officer shall 
     determine by rule or regulation the information to be 
     included in the notice required under this subsection, which 
     shall include such information as may be necessary to enable 
     the Chief Executive Officer to determine whether--
       (i) the person or persons to whom the assets, properties or 
     business are being transferred in the proposed transaction 
     (or proposed series of transactions) should be considered to 
     be the successor in interest of the participant for purposes 
     of this Act, or
       (ii) the proposed transaction (or proposed series of 
     transactions) would, if consummated, be subject to avoidance 
     by a trustee under section 544(b) or 548 of title 11, United 
     States Code, as if, but whether or not, the participant is 
     subject to a case under title 11, United States Code.
       (B) Statements.--The notice shall also include--
       (i) a statement by the participant as to whether it 
     believes any person will or has become a successor in 
     interest to the participant for purposes of this Act and, if 
     so, the identity of that person; and
       (ii) a statement by the participant as to whether that 
     person has acknowledged that it will or has become a 
     successor in interest for purposes of this Act.
       (4) Definition.--In this subsection, the term ``significant 
     portion of the assets, properties or business of a 
     participant'' means assets (including, without limitation, 
     tangible or intangible assets, securities and cash), 
     properties or business of such participant (or its affiliated 
     group, to the extent that the participant has elected to be 
     part of an affiliated group under section 204(f)) that, 
     together with any other asset, property or business 
     transferred by such participant in any of the previous 
     completed 5 fiscal years of such participant (or, as 
     appropriate, its affiliated group), and as determined in 
     accordance with United States generally accepted accounting 
     principles as in effect from time to time--
       (A) generated at least 40 percent of the revenues of such 
     participant (or its affiliated group);
       (B) constituted at least 40 percent of the assets of such 
     participant (or its affiliated group);
       (C) generated at least 40 percent of the operating cash 
     flows of such participant (or its affiliated group); or
       (D) generated at least 40 percent of the net income or loss 
     of such participant (or its affiliated group),
     as measured during any of such 5 previous fiscal years.
       (5) Consummation of transaction.--Any proposed transaction 
     (or proposed series of transactions) with respect to which a 
     participant is required to provide notice under paragraph (1) 
     may not be consummated until at least 30 days after delivery 
     to the Chief Executive Officer of such notice, unless the 
     Chief Executive Officer shall earlier terminate the notice 
     period. The Chief Executive Officer shall endeavor whenever 
     possible to terminate a notice period at the earliest 
     practicable time.
       (6) Right of action.--
       (A) In general.--Notwithstanding section 221(f), if the 
     Chief Executive Officer or any participant believes that a 
     participant proposes to engage or has engaged, directly or 
     indirectly, in, or is the subject of, a transaction (or 
     series of transactions)--
       (i) involving a person or persons who, as a result of such 
     transaction (or series of transactions), may have or may 
     become the successor in interest or successors in interest of 
     such participant, where the status or potential status as a 
     successor in interest has not been stated and acknowledged by 
     the participant and such person; or
       (ii) that may be subject to avoidance by a trustee under 
     section 544(b) or 548 of title 11, United States Code, as if, 
     but whether or not, the participant is a subject to a case 
     under title 11, United States Code,

     then the Chief Executive Officer or such participant may, as 
     a deemed creditor under applicable law, bring a civil action 
     in an appropriate forum against the participant or any other 
     person who is either a party to the transaction (or series of 
     transactions) or the recipient of any asset, property, or 
     business of the participant.
       (B) Relief allowed.--In any action commenced under this 
     subsection, the Chief Executive Officer or a participant, as 
     applicable, may seek--
       (i) with respect to a transaction (or series of 
     transactions) referenced in clause (i) of subparagraph (A), a 
     declaratory judgment regarding whether such person will or 
     has become the successor in interest of such participant; or
       (ii) with respect to a transaction (or series of 
     transactions) referenced in clause (ii) of subparagraph (A)--

       (I) a temporary restraining order or a preliminary or 
     permanent injunction against such transaction (or series of 
     transactions); or
       (II) such other relief regarding such transaction (or 
     series of transactions) as the court determines to be 
     necessary to ensure that performance of a participant's 
     payment obligations under this Act is not materially impaired 
     by reason of such transaction (or series of transactions).

       (C) Applicability.--If the Chief Executive Officer or a 
     participant wishes to challenge a statement made by a 
     participant that a person will not or has not become a 
     successor in interest for purposes of this Act, then this 
     paragraph shall be the exclusive means by which the 
     determination of whether such person will or has become a 
     successor in interest of the participant shall be made. This 
     paragraph shall not preempt any other rights of any person 
     under applicable Federal or State law.
       (D) Venue.--Any action under this paragraph shall be 
     brought in any appropriate United States district court or, 
     to the extent necessary to obtain complete relief, any other 
     appropriate forum outside of the United States.
       (7) Rules and regulations.--The Chief Executive Officer may 
     promulgate regulations to effectuate the intent of this 
     subsection, including regulations relating to the form, 
     timing, and content of notices.

     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.

     SEC. 225. EDUCATION, CONSULTATION, AND MONITORING.

       (a) In General.--The Chief Executive Officer shall 
     establish a program for the education, consultation, and 
     medical monitoring of persons with exposure to asbestos. The 
     program shall be funded by the Fund.
       (b) Outreach and Education.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Chief Executive Officer shall 
     establish an outreach and education program, including a 
     website designed to provide information about asbestos-
     related medical conditions to members of populations at risk 
     of developing such conditions.
       (2) Information.--The information provided under paragraph 
     (1) shall include information about--
       (A) the signs and symptoms of asbestos-related medical 
     conditions;
       (B) the value of appropriate medical screening programs; 
     and
       (C) actions that the individuals can take to reduce their 
     future health risks related to asbestos exposure.
       (c) Medical Monitoring Program and Protocols.--
       (1) In general.--The Chief Executive Officer shall 
     establish procedures for a medical monitoring program for 
     persons exposed to asbestos who have been approved for level 
     I compensation under section 131.
       (2) Procedures.--The procedures for medical monitoring 
     shall include--
       (A) specific medical tests to be provided to eligible 
     individuals and the periodicity of those tests, which shall 
     initially be provided every 3 years and include--
       (i) administration of a health evaluation and work history 
     questionnaire;
       (ii) physical examinations, including blood pressure 
     measurement, chest examination, and examination for clubbing;
       (iii) AP and lateral chest x-ray; and
       (iv) spirometry performed according to ATS standards;
       (B) qualifications of medical providers who are to provide 
     the tests required under subparagraph (A); and
       (C) administrative provisions for reimbursement from the 
     Fund of the costs of monitoring eligible claimants, including 
     the costs associated with the visits of the claimants to 
     physicians in connection with medical monitoring, and with 
     the costs of performing and analyzing the tests.
       (3) Preferences.--
       (A) In general.--In administering the monitoring program 
     under this subsection, preference shall be given to medical 
     and program providers with--
       (i) a demonstrated capacity for identifying, contacting, 
     and evaluating populations of workers or others previously 
     exposed to asbestos; and
       (ii) experience in establishing networks of medical 
     providers to conduct medical screening and medical monitoring 
     examinations.
       (B) Provision of lists.--Claimants that are eligible to 
     participate in the medical monitoring program shall be 
     provided with a list of approved providers in their 
     geographic area at the time such claimants become eligible to 
     receive medical monitoring.
       (d) Contracts.--The Chief Executive Officer may enter into 
     contracts with qualified program providers that would permit 
     the program providers to undertake medical monitoring 
     programs by means of subcontracts with a network of medical 
     providers, or other health providers.
       (e) Review.--Not later than 5 years after the date of 
     enactment of this Act, and every 5 years thereafter, the 
     Chief Executive Officer shall review, and if necessary 
     update, the protocols and procedures established under this 
     section.

     SEC. 226. OVERSIGHT BY THE SECRETARY OF THE TREASURY.

       The Secretary of the Treasury shall have authority to serve 
     as the Federal Government's safety and soundness regulator 
     for the Corporation, and may promulgate such regulations and 
     exercise such authority as necessary to ensure the fiscal 
     safety and soundness of the Corporation.

     SEC. 227. ADMINISTRATIVE FUNDING.

       The Corporation and Asbestos Insurers Committee shall each 
     establish a budget for

[[Page S1224]]

     each fiscal year, which shall be reviewed and approved 
     according to their respective internal procedures not less 
     than 6 months before the commencement of the fiscal year to 
     which the budget pertains. The budgets shall be subject to 
     approval by the Secretary of the Treasury.

                       TITLE III--JUDICIAL REVIEW

     SEC. 301. JUDICIAL REVIEW OF PROCEDURES.

       (a) Exclusive Jurisdiction.--The United States Court of 
     Appeals for the Federal Circuit shall have exclusive 
     jurisdiction over any action to review written procedures 
     issued by the Chief Executive Officer or by the Asbestos 
     Insurers Committee or under this Act.
       (b) Review.--Any party adversely affected or aggrieved by 
     any provision of the written procedures issued by the Chief 
     Executive Officer or by the Asbestos Insurers Committee or 
     under this Act shall file a petition for review not later 
     than 60 days after the date of issuance of such procedures.
       (c) Standard of Review.--The court shall uphold the 
     provision of the written procedures being challenged unless 
     the court determines that issuance of such procedure is 
     arbitrary and capricious or contrary to law.
       (d) Expedited Treatment.--The United States Court of 
     Appeals for the Federal Circuit shall provide expedited 
     treatment for actions filed under this section.

     SEC. 302. JUDICIAL REVIEW OF AWARD DECISIONS.

       (a) In General.--Any claimant adversely affected or 
     aggrieved by a final decision of the Chief Executive Officer 
     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 Chief Executive Officer.
       (b) Exclusive Jurisdiction.--A petition for review may only 
     be filed in the United States Court of Appeals for the 
     Federal Circuit.
       (c) Standard of Review.--The court shall uphold the 
     decision of the Chief Executive Officer 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.
       (d) Expedited Procedures.--The United States Court of 
     Appeals shall provide for expedited procedures for reviews 
     under this section.

     SEC. 303. JUDICIAL REVIEW OF PARTICIPANTS' ASSESSMENTS.

       (a) Exclusive Jurisdiction.--The United States Court of 
     Appeals for the Federal Circuit shall have exclusive 
     jurisdiction over any action to review a final determination 
     by the Chief Executive Officer or the Asbestos Insurers 
     Committee 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 Chief Executive Officer or the 
     Asbestos Insurers Committee 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. The court shall give such action 
     expedited consideration.

     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 
     relief 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 Chief Executive Officer or the Asbestos 
     Insurers Committee 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 Chief 
     Executive Officer or the Asbestos Insurers Committee 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.--The United States District Court for the 
     District of Columbia shall have exclusive jurisdiction over 
     any action challenging the constitutionality of any provision 
     or application of this Act. The following rules shall apply:
       (A) The action shall be filed in the United States District 
     Court for the District of Columbia and shall be heard by a 3-
     judge court convened under section 2284 of title 28, United 
     States Code.
       (B) A final decision in the action shall be reviewable only 
     by appeal directly to the Supreme Court of the United States. 
     Such appeal shall be taken by the filing of a notice of 
     appeal within 10 days, and the filing of a jurisdictional 
     statement within 30 days, after the entry of the final 
     decision.
       (C) 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.
       (2) Repayment to asbestos trust and class action trust.--If 
     the transfer of the assets of any asbestos trust of a debtor 
     or any class action trust (or this Act as a whole) is held to 
     be unconstitutional or otherwise unlawful, the Fund shall 
     transfer the remaining balance of such assets (determined 
     under section 405(f)(1)(A)(iii)) back to the appropriate 
     asbestos trust or class action trust within 90 days after 
     final judicial action on the legal challenge, including the 
     exhaustion of all appeals.

     SEC. 306. REPRESENTATIONS TO COURT.

       (a) Representations to the Reviewing Judicial Body.--By 
     presenting a request for judicial review under this title, a 
     participant in the Fund, or a person acting on behalf of a 
     participant in the Fund, certifies that to the best of the 
     person's knowledge, information, and belief, formed after an 
     inquiry reasonable under the circumstances--
       (1) it is not being presented for any improper purpose, 
     such as to harass or to cause unnecessary delay or needless 
     increase in the cost of litigation;
       (2) the claims, defenses, and other legal contentions 
     therein are warranted by existing law or by a nonfrivolous 
     argument for the extension, modification, or reversal of 
     existing law or the establishment of new law;
       (3) the allegations and other factual contentions have 
     evidentiary support; and
       (4) the denials of factual contentions are warranted on the 
     evidence.
       (b) Sanctions.--
       (1) In general.--If, after notice and a reasonable 
     opportunity to respond, the reviewing judicial body 
     determines that subsection (a) has been violated, the 
     reviewing judicial body may, subject to the provisions of 
     this subsection, impose an appropriate sanction upon the 
     requesting participant, or parties that have violated 
     subsection (a) or are responsible for the violation.
       (2) Show cause order.--The reviewing judicial body may 
     enter an order describing the specific conduct that appears 
     to violate subsection (a) and directing a party to show cause 
     why it has not violated subsection (a) with respect thereto.
       (3) Sanctions.--
       (A) In general.--A sanction imposed for violation of this 
     rule shall be limited to what is sufficient to deter 
     repetition of such conduct or comparable conduct by others 
     similarly situated. Subject to subparagraph (B), the sanction 
     may consist of, or include, directives of a nonmonetary 
     nature, an order to pay a penalty of up to $500,000, or, if 
     imposed on motion and warranted for effective deterrence, an 
     order directing payment to the movant of some or all of the 
     reasonable expenses incurred as a direct result of the 
     violation.
       (B) Monetary sanctions.--Monetary sanctions may not be 
     awarded unless the reviewing judicial body issues its order 
     to show cause before a voluntary dismissal or settlement of 
     the claims made by or against the party which is to be 
     sanctioned.
       (4) Order.--When imposing sanctions, the reviewing judicial 
     body shall describe the conduct determined to constitute a 
     violation of this rule and explain the basis for the sanction 
     imposed.

                   TITLE IV--MISCELLANEOUS PROVISIONS

     SEC. 401. FALSE INFORMATION.

       (a) Criminal Liability.--
       (1) In general.--Chapter 63 of title 18, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 1351. 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 
     Committee under title II of the Fairness in Asbestos Injury 
     Resolution Act of 2006 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.--
       ``(1) In general.--It shall be unlawful for any person, in 
     any matter involving the Office of Asbestos Disease 
     Compensation or the Asbestos Insurers Committee, to knowingly 
     and willfully--
       ``(A) falsify, conceal, or cover up by any trick, scheme, 
     or device a material fact;
       ``(B) make any materially false, fictitious, or fraudulent 
     statement or representation; or
       ``(C) make or use any false writing or document knowing the 
     same to contain any materially false, fictitious, or 
     fraudulent statement or entry, in connection with the award

[[Page S1225]]

     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 2006.
       ``(2) Penalty.--A person who violates this subsection shall 
     be fined under this title or imprisoned not more than 10 
     years, or both.''.
       (2) 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.''.

       (b) Further Liability.--
       (1) Definition.--In this section, the term ``knowingly'' 
     means that a person, with respect to information--
       (A) has actual knowledge of the information;
       (B) acts in deliberate ignorance of the truth or falsity of 
     the information; or
       (C) acts in reckless disregard of the truth or falsity of 
     the information.
       (2) Liability.--Any defendant participant or insurer 
     participant that knowingly makes, uses, or causes to be made 
     or used a false record or statement to conceal, avoid, or 
     decrease an obligation to pay or transmit money or property 
     to the Corporation shall be liable under the standards of 
     section 3729 of title 31, United States Code.

     SEC. 402. EFFECT ON BANKRUPTCY LAWS.

       (a) No Automatic Stay.--Section 362(b) of title 11, United 
     States Code, is amended--
       (1) in paragraph (17), by striking ``or'' at the end;
       (2) in paragraph (18), by striking the period at the end 
     and inserting ``; or''; and
       (3) by inserting after paragraph (18) the following:
       ``(19) under subsection (a) of this section of the 
     enforcement of any payment obligations under section 204 of 
     the Fairness in Asbestos Injury Resolution Act of 2006, 
     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 2006), 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 Chief Executive Officer (as that 
     term is defined in section 3 of the Fairness in Asbestos 
     Injury Resolution Act of 2006) 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 
     2006.''.
       (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 2006) 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 2006); 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 2006; 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 2006, 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 2006 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 2006--
       ``(A) the trust qualifies as a trust under section 201 of 
     that Act; and
       ``(B) the trust does not file an election under section 410 
     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 2006) shall 
     be transferred to the Fund not later than 90 days after the 
     date of enactment of the Fairness in Asbestos Injury 
     Resolution Act of 2006 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 Chief Executive Officer 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 Chief Executive 
     Officer of the Fund may refuse to accept any asset that the 
     Chief Executive Officer 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 Chief Executive 
     Officer, 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 2006 shall not be construed to require the 
     Chief Executive Officer 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 2006, 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 2006, 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.--
       ``(A) In general.--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 2006, and an interlocutory order 
     denying such relief shall not be subject to immediate appeal 
     under section 1291(a) of title 28.
       ``(B) Availability of fund assets.--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 such transfer 
     shall no longer be 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.

[[Page S1226]]

       ``(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 Chief Executive Officer 
     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 304 of the Fairness in Asbestos Injury 
     Resolution Act of 2006. Notwithstanding any other provision 
     of this paragraph, for purposes of implementing the sunset 
     provisions of section 402(f) of such Act which apply to 
     asbestos trusts and the class action trust, the bankruptcy 
     court or United States district court having jurisdiction 
     over any such trust as of the date of enactment of such Act 
     shall retain such jurisdiction.''.
       (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 2006), 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 2006), 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 
     and the perfected claims of the secured creditors. 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.
       (j) Standing in Bankruptcy Proceedings.--The Chief 
     Executive Officer shall have standing in any bankruptcy case 
     involving a debtor participant. No bankruptcy court may 
     require the Chief Executive Officer to return property seized 
     to satisfy obligations to the Fund.

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

       (a) Effect on Federal and State Law.--The provisions of 
     this Act shall supersede any Federal or State law insofar as 
     such law may relate to any asbestos claim, including any 
     claim described under subsection (e)(2).
       (b) Effect on Non-Asbestos Claims.--
       (1) In general.--
       (A) Rule of construction.--Nothing in this Act shall be 
     construed to preempt, bar, or otherwise preclude any personal 
     injury claim attributable to exposure to airborne minerals, 
     dusts, or fibers other than asbestos as to which the 
     plaintiff--
       (i) pleads with particularity and establishes by a 
     preponderance of evidence either that--

       (I) no claim has been asserted or filed by or with respect 
     to the exposed person in any forum for any asbestos-related 
     condition and the exposed person (or another claiming on 
     behalf of or through the exposed person) is not eligible for 
     any award under this Act; or
       (II)(aa) the exposed person suffers or has suffered a 
     functional impairment that was caused by exposure to 1 or 
     more airborne minerals, dusts, or fibers other than asbestos;
       (bb) asbestos exposure was not a significant contributing 
     factor to such functional impairment; and
       (cc) the functional impairment is materially different than 
     that for which the exposed person (or another claiming on 
     behalf of or through the exposed person) has obtained or is 
     eligible to obtain an award under this Act; and

       (ii) satisfies the requirements of paragraph (2).
       (B) Preemption.--Claims attributable to exposure to 
     airborne minerals, dusts, or fibers other than asbestos that 
     fail to meet the requirements of subparagraph (a) shall be 
     preempted by this Act.
       (2) Required evidence.--In any claim to which paragraph (1) 
     applies, the initial pleading (or, for claims pending on the 
     date of enactment of this Act, an amended pleading to be 
     filed within 30 days after such date), shall plead with 
     particularity the elements of subparagraph (A)(i) (I) or (II) 
     of paragraph (1) and shall be accompanied by the information 
     described in subparagraphs (A) through (D) of this paragraph 
     if the claim pleads the elements of subparagraph (A)(i)(II) 
     of paragraph (1) and by the information described in 
     subparagraphs (B) through (D) of this paragraph if the claim 
     pleads the elements of subparagraph (A)(i)(I) of paragraph 
     (1)--
       (A) admissible evidence, including at a minimum, a 
     certified B-reader's report, the underlying x-ray film, and 
     such other evidence sufficient to establish a prima facie 
     showing that the claim may be maintained and is not preempted 
     under paragraph (1);
       (B) notice of any previous lawsuit or claim for benefits in 
     which the exposed person, or another claiming on behalf of or 
     through the injured person, asserted an injury or disability 
     based wholly or in part on exposure to asbestos;
       (C) the history of the exposed person's exposure, if any, 
     to asbestos; and
       (D) copies of all medical and laboratory reports pertaining 
     to the exposed person that refer to asbestos or asbestos 
     exposure.
       (c) Superseding Provisions.--
       (1) In general.--Except as provided under paragraph (3), 
     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 Chief Executive Officer, or 
     escrow agent shall be superseded in its entirety by this Act.
       (2) No force or effect.--Except as provided under paragraph 
     (3), 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 such agreement, understanding, or undertaking.
       (3) Exception.--
       (A) In general.--Except as provided in section 202(f), 
     nothing in this Act shall abrogate a binding and legally 
     enforceable written settlement agreement between any 
     defendant participant or its insurer and a specific named 
     plaintiff with respect to the settlement of an asbestos claim 
     of the plaintiff if--
       (i) before the date of enactment of this Act, the 
     settlement agreement was executed directly by the settling 
     defendant or the settling insurer and the individual 
     plaintiff, or on behalf of the plaintiff where the plaintiff 
     is incapacitated and the settlement agreement is signed by an 
     authorized legal representative;
       (ii) the settlement agreement contains an express 
     obligation by the settling defendant or settling insurer to 
     make a future direct monetary payment or payments in a fixed 
     amount or amounts to the individual plaintiff; and
       (iii) within 30 days after the date of enactment of this 
     Act, or such shorter time period specified in the settlement 
     agreement, all conditions to payment under the settlement 
     agreement have been fulfilled, including any required court 
     approval of the settlement, so that the only remaining 
     performance due under the settlement agreement is the payment 
     or payments by the settling defendant or the settling 
     insurer.
       (B) Bankruptcy-related agreements.--The exception set forth 
     in this paragraph shall not apply to any bankruptcy-related 
     agreement.
       (C) Collateral source.--Any settlement payment under this 
     section is a collateral source if the plaintiff seeks 
     recovery from the Fund.
       (D) Abrogation.--Nothing in subparagraph (A) shall abrogate 
     a settlement agreement otherwise satisfying the requirements 
     of that subparagraph if such settlement agreement expressly 
     anticipates the enactment of this Act and provides for the 
     effects of this Act.
       (d) Exclusive Remedy.--The remedies provided under this Act 
     shall be the exclusive remedy for any asbestos claim, 
     including any claim described in subsection (e)(2), under any 
     Federal or State law.
       (e) Bar on Asbestos Claims.--
       (1) In general.--No asbestos claim (including any claim 
     described in paragraph (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 
     unappealable verdict or final order or final judgment has 
     been entered by a court 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--

[[Page S1227]]

       (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 
     healthcare 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 paragraph (2)) in any Federal 
     or State court is preempted by this Act, except for any 
     action for which an unappealable verdict or final order or 
     final judgment has been entered by a court before the date of 
     enactment of 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 preempted, barred, or otherwise precluded 
     under this Act, and 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--
       (i) as may be necessary to accommodate removal of any 
     actions pending (including on appeal) on the date of 
     enactment of this Act; and
       (ii) orders to remand removed actions shall be immediately 
     appealable.
       (D) Jurisdiction.--The jurisdiction of the district court 
     shall be limited to--
       (i) determining whether removal was proper; and
       (ii) determining, based on the evidentiary record, whether 
     the claim presented is preempted, barred, or otherwise 
     precluded under 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, as of the date of 
     enactment of this Act, there had been no verdict or final 
     order or final judgment entered by a court, 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 Chief Executive Officer 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 
     Chief Executive Officer 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 Chief 
     Executive Officer 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 
     Chief Executive Officer 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) 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 Defendant Participant's Funding 
  Obligation Ends:                               Applicable Percentage:
  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  ....

       (C) 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.
       (D) 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.
       (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 Chief Executive Officer 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 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's or reinsurer's payments to the Fund or the erosion 
     deemed to occur under this section.
       (C) Policies without certain limits or with exclusion.--
     Except as provided under subparagraph (E), 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.
       (D) 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.
       (E) 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

[[Page S1228]]

     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. If 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) 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.
       (5) Effect on other insurance claims.--Other than as 
     specified in this subsection, this Act does not alter, 
     change, modify, or affect insurance for claims other than 
     asbestos claims.
       (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 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;
       (B) any such rights or obligations of such person with 
     respect to insurance or reinsurance are prohibited by 
     paragraph (1) or (2) of subsection (e); or
       (C) the limits of insurance otherwise available to such 
     participant in respect of asbestos claims are deemed to be 
     eroded under subsection (a).

     SEC. 405. ADDITIONAL FUNDING OR RETURN TO COURT.

       (a) Verification of Unanticipated Claims.--
       (1) In general.--If the number of claims that qualify for 
     compensation under a claim level exceed 115 percent of the 
     number of claims expected to qualify for compensation under 
     that claim level or designation in the 2004 Congressional 
     Budget Office estimate of asbestos-injury claims, or the Fund 
     otherwise is projected to be unable to pay all qualified 
     claims in any year in the future, the Chief Executive Officer 
     shall conduct a review of a statistically significant sample 
     of claims qualifying for compensation under the appropriate 
     claim level or designation.
       (2) Determinations.--
       (A) In general.--The Chief Executive Officer's review shall 
     examine the best available medical evidence in order to 
     determine which one of the following is true:
       (i) Without a significant number of exceptions, all of the 
     claimants who qualified for compensation under the claim 
     level or designation suffer from an injury or disease that 
     was caused by occupational exposure to asbestos.
       (ii) A significant number of claimants who qualified for 
     compensation under the claim level or designation do not 
     suffer from an injury or disease that was caused by 
     occupational exposure to asbestos.
       (B) Future claims.--If the Chief Executive Officer projects 
     that the Fund will be unable to pay all qualified claims in 
     any year in the future, the Chief Executive Officer shall 
     also determine whether the Fund lacks the resources to pay 
     all qualified claimants over the life of the Fund.
       (C) Final determination.--The final determination of the 
     Chief Executive Officer under this paragraph shall be made in 
     accordance with notice and comment under subchapter II of 
     chapter 5 of title 5, United States Code (commonly referred 
     to as the Administrative Procedure Act).
       (b) Judicial Review of Chief Executive Officer Verification 
     of Claims.--The Chief Executive Officer's determination that 
     either subparagraph (A) or (B) in paragraph (2) of subsection 
     (a) is true shall be subject to judicial review in the United 
     States Court of Appeals for the District of Columbia Circuit. 
     Review may be sought by any interested party. The review 
     shall be conducted in accordance with the standards and 
     procedures of chapter 5 of title 5, United States Code 
     (commonly referred to as the Administrative Procedure Act), 
     except that all findings based on medical science shall be 
     reviewed de novo.
       (c) Additional Trust-Fund Assessments or Return to Court.--
       (1) Additional assessments against defendant 
     participants.--
       (A) Definition.--In this paragraph the term ``nonbankruptcy 
     defendant participant'' means a defendant participant that 
     has not entered into a final confirmed plan

[[Page S1229]]

     of reorganization under section 524(g) of title 11, United 
     States Code.
       (B) Additional assessments.--
       (i) In general.--The Chief Executive Officer shall make a 
     recommendation under clause (ii), if the United States Court 
     of Appeals finds as a result of its review under subsection 
     (b) that--

       (I) without a significant number of exceptions, all of the 
     claimants who qualified for compensation under the claim 
     level or designation under review suffer from an injury or 
     disease that is caused by occupational exposure to asbestos; 
     or
       (II) the Fund lacks the resources necessary to pay all 
     qualified claimants at the present time, and the Chief 
     Executive Officer projects that the Fund will remain unable 
     to pay all qualified claimants over the life of the Fund.

       (ii) Recommendations.--If the United States Court of 
     Appeals makes a finding under subclause (I) or (II) of clause 
     (i), the Chief Executive Officer shall recommend to Congress 
     that it enact--

       (I) additional assessments against all nonbankruptcy 
     defendant participants, in accordance with each nonbankruptcy 
     defendant participant's relative prior assessments (taking 
     into account hardship and inequity reductions), in an amount 
     necessary to allow the Fund to compensate all qualified 
     claimants; or
       (II) an expansion of the Fund's borrowing authority, by an 
     amount necessary to allow the Fund to compensate all 
     qualified claimants.

       (2) Expedited congressional action on limited additional 
     assessments or borrowing.--Either of the following shall 
     constitute a modification of the Fund that shall be submitted 
     by the Chief Executive Officer to Congress in the appropriate 
     form for expedited action under title V:
       (A) A recommendation of additional assessments that does 
     not exceed a defendant participant's original assessment 
     obligation by more than 10 percent, if no additional 
     assessment has been imposed by Congress within the previous 5 
     years.
       (B) A recommendation to expand borrowing authority by no 
     more than $5,000,000,000.
       (3) Return to court.--
       (A) In general.--If Congress declines to enact within 1 
     year after the date of the recommendation made by the Chief 
     Executive Officer under paragraph (1)(B), and the Chief 
     Executive Officer again determines that the Fund lacks the 
     resources necessary to pay all qualified claimants at the 
     present time, and the Chief Executive Officer continues to 
     project that the Fund will remain unable to pay all qualified 
     claimants over the life of the Fund, any individual who 
     qualifies for compensation under the Fund may file a civil 
     action in United States District Court against any defendant 
     participant to obtain relief for injuries suffered as a 
     result of exposure to asbestos.
       (B) Exclusive remedy and limitations.--
       (i) In general.--As of the effective date of a return to 
     court authorized by this paragraph, an action under this 
     paragraph 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 return to 
     court, except that claims against the Fund that have 
     qualified for compensation and remain eligible for 
     compensation under subparagraph (F) may be paid by the Fund. 
     The applicable statute of limitations for a claim brought 
     under this paragraph is 2 years after the asbestos injury or 
     disease was diagnosed or the claimant had discovered facts 
     that would have led a reasonable person to obtain such a 
     diagnosis, except that claimants who filed a claim against 
     the Fund under this Act before the return to court shall have 
     2 years after the date of the return to court to file an 
     action under this paragraph, whichever is longer.
       (ii) Limitation.--An individual who has received or is 
     entitled to receive an award from the Fund may not bring an 
     action under this paragraph, except--

       (I) 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 paragraph, 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
       (II) an individual who received an award for a nonmalignant 
     or malignant disease (except mesothelioma) (Levels I through 
     VI) from the Fund may assert a claim for mesothelioma under 
     this paragraph, 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.

       (C) Limits on attorneys' fees.--
       (i) In general.--In any action permitted under subparagraph 
     (B), notwithstanding any contract, the representative of an 
     individual may not receive, for services rendered in 
     connection with an action permitted under subparagraph (A), 
     more than 20 percent of a final award made as a result of 
     such action.
       (ii) Reasonable fee for work actually and reasonably 
     performed.--In addition to the limitation specified in clause 
     (i), a representative of an individual may not receive a fee 
     unless--

       (I) the representative submits to the court appropriately 
     detailed billing documentation for the work actually 
     performed in the course of representation of the individual; 
     and
       (II) the court finds that the fee to be awarded is for work 
     actually and reasonably performed on behalf of the claimant 
     does not exceed 200 percent of a reasonable hourly fee for 
     such work.

       (D) Continued funding.--If asbestos claims are returned to 
     court under subparagraph (A), participants shall remain 
     required to make payments as provided under subtitles A and B 
     of title II. The Fund shall pay all claims under Levels VI, 
     and VII, that were found to qualify for compensation before 
     the date of a return to court under subparagraph (A). If the 
     full amount of payments required under title II is not 
     necessary for the Fund to pay claims that remain entitled to 
     compensation, pay the Fund's debt, and support the Fund's 
     continued operation as needed to pay such claims and debt, 
     the Chief Executive Officer may reduce such payments. Any 
     such reductions shall be allocated among participants in the 
     same proportion as the liability under subtitles A and B of 
     title II.
       (d) Correction of Inappropriate Claims Criteria.--If the 
     United States Court of Appeals finds as a result of its 
     review under subsection (b) that a significant number the 
     claimants who qualified for compensation under the claim 
     level under review do not suffer from an injury or disease 
     that was caused by occupational exposure to asbestos, the 
     Chief Executive Officer shall correct the compensation 
     criteria in order to exclude from eligibility for 
     compensation all such claims.
       (e) Judicial Review of Chief Executive Officer 
     Corrections.--The Chief Executive Officer's correction of 
     compensation criteria under subsection (d) shall become 
     effective upon the conclusion of final, unappealable judicial 
     review in the United States Court of Appeals for the District 
     of Columbia Circuit. Review may be sought by any interested 
     party. The review shall be conducted under the standards and 
     procedures of chapter 5 of title 5, United States Code, 
     except that all findings based on medical science shall be 
     reviewed de novo, and the Chief Executive Officer's 
     corrections shall be reviewed to determine that the 
     corrections are reasonably tailored to achieve the result 
     required by this section. The Court may order such relief as 
     is necessary to achieve the results required by this section.
       (f) Temporary Stay of Unanticipated Claims.--The Chief 
     Executive Officer shall stay payment of claims for a claim 
     level that results in or is subject to review under 
     subsection (a) pending such review and the collection of 
     additional assessments or the correction of compensation 
     criteria.
       (g) Report.--The Chief Executive Officer 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.
       (h) Contents of Report.--The annual report submitted under 
     this subsection shall include an analysis of--
       (1) the claims experience of the program during the most 
     recent fiscal year, including--
       (A) the number of claims made to the Corporation and a 
     description of the types of medical diagnoses and asbestos 
     exposures underlying those claims;
       (B) the number of claims denied by the Corporation 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;
       (C) a summary of the eligibility determinations made by the 
     Corporation under section 114;
       (D) a summary of the awards made from the Fund, including 
     the amount of the awards; and
       (E) for each eligible condition, 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 such claimants are entitled according 
     to section 131;
       (2) the administrative performance of the program, 
     including--
       (A) the performance of the program in meeting the time 
     limits prescribed by law and an analysis of the reasons for 
     any systemic delays;
       (B) any backlogs of claims that may exist and an 
     explanation of the reasons for such backlogs;
       (C) the costs to the Fund of administering the program; and
       (D) any other significant factors bearing on the efficiency 
     of the program;
       (3) the financial condition of the Fund, including--
       (A) statements of the Fund's revenues, expenses, assets, 
     and liabilities;
       (B) the identity of all participants, the funding 
     allocations of each participant, and the total amounts of all 
     payments to the Fund;
       (C) a list of all financial hardship or inequity 
     adjustments applied for during the fiscal year, and the 
     adjustments that were made during the fiscal year;
       (D) a statement of the investments of the Fund; and
       (E) a statement of the borrowings of the Fund; and

[[Page S1230]]

       (4) a summary of prosecutions under section 1348 of title 
     18, United States Code (as added by this Act).
       (i) Injunction After Confirmation of Bankruptcy Plan of 
     Reorganization.--
       (1) In general.--Section 524(g)(2)(B)(ii) (IV)(bb) of title 
     11, United States Code, is amended by inserting after 
     ``plan'' the following: ``, or, if such a vote is not 
     obtained with respect to any such class of claimants so 
     established, the plan satisfies the requirements for 
     confirmation of a plan under section 1129(b) that would apply 
     to such class if the class did not accept the plan for 
     purposes of section 1129(a)(8) (whether or not the class has 
     accepted the plan)''.
       (2) Effective date; application.--The amendment made by 
     paragraph (1) shall take effect on the date of enactment of 
     this Act, and shall apply with respect to cases under title 
     11 of the United States Code, which were commenced before, 
     on, or after such date.

     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 shall 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 shall be 
     construed to--
       (1) create any obligation of funding from the United States 
     Government including the coverage of any costs associated 
     with borrowing authorized under section 221(b)(2); 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. VIOLATIONS OF ENVIRONMENTAL HEALTH AND SAFETY 
                   REQUIREMENTS.

       (a) Asbestos in Commerce.--If the Chief Executive Officer 
     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 Chief Executive Officer shall refer the matter 
     in writing within 30 days after receiving that information to 
     the Chief Executive Officer 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 Chief Executive 
     Officer 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 Chief 
     Executive Officer shall refer the matter in writing within 30 
     days after receiving that information to the Chief Executive 
     Officer 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 Chief Executive Officer 
     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 Chief Executive Officer shall refer 
     the matter in writing within 30 days after receiving that 
     information and refer the matter to the Secretary of Labor or 
     the appropriate State agency with authority to enforce 
     occupational safety and health standards, for investigation 
     for possible civil or criminal penalties under section 17 of 
     the Occupational Safety and Health Act of 1970 (29 U.S.C. 
     666).

     SEC. 408. 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, healthcare service contractor, 
     fraternal benefit organization, insurance agent, third-party 
     Chief Executive Officer, 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 healthcare, 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 2006.''.
       (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 2006.''.
       (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 2006.''.

     SEC. 409. CORPORATE RESPONSIBILITY FOR ANNUAL AND FINANCIAL 
                   REPORTS.

       (a) In General.--Each periodic report, including the annual 
     report of the Chief Executive Officer filed by the Chief 
     Executive Officer in connection with this Act, shall be 
     accompanied by a written statement by the Chief Executive 
     Officer and Chief Financial Officer (or equivalent thereof) 
     of the Corporation.
       (b) Contents.--The statement required under subsection (a) 
     shall certify that the periodic report containing the 
     financial statements fully complies with the requirements of 
     this Act and that information contained in the periodic 
     report fairly presents, in all material respects, the 
     financial condition and results of operations of the 
     Corporation.
       (c) Criminal Penalties.--Whoever--
       (1) certifies any statement as set forth under subsections 
     (a) and (b), knowing that the periodic report accompanying 
     the statement does not comport with all the requirements set 
     forth under this section, shall be fined not more than 
     $1,000,000 or imprisoned not more than 10 years, or both; or
       (2) willfully certifies any statement as set forth under 
     subsections (a) and (b), knowing that the periodic report 
     accompanying the statement does not comport with all the 
     requirements set forth in this section, shall be fined not 
     more than $5,000,000, or imprisoned not more than 20 years, 
     or both.

     SEC. 410. OPT-OUT RIGHTS OF CERTAIN TRUSTS AND EFFECT OF OPT-
                   OUT.

       (a)  Opt-Out Rights.--Any trust defined under section 
     201(8) that has been established or formed under a plan of 
     reorganization under chapter 11 of title 11, United States 
     Code, confirmed by a duly entered order or judgment of a 
     court, which order or judgment is no longer subject to any 
     appeal or judicial review on the date of enactment of this 
     Act, may elect not to be covered by this Act by filing 
     written notice of such election to the Chief Executive 
     Officer not later than 90 days after the date of enactment of 
     this Act.
       (b) Effect of Opt-Out.--
       (1) In general.--This Act nor any amendment made by this 
     Act shall apply to--
       (A) any trust that makes an election under subsection (a); 
     or
       (B) any claim or future demand that has been channeled to 
     that trust.
       (2) Assets and other rights and claims.--A trust that makes 
     an election under subsection (a) shall retain all of its 
     assets. The contractual and other rights of a trust making an 
     election under subsection (a) and claims against other 
     persons (whether held directly or indirectly by others for 
     the benefit of the trust), including the rights and claims of 
     the trust against insurers, shall be preserved and not 
     abrogated by this Act.

                TITLE V--EXPEDITED CONGRESSIONAL ACTION

     SEC. 501. CONGRESSIONAL ACTION REGARDING MODIFICATIONS OF THE 
                   FUND.

       (a) In General.--A modification of the Fund that is subject 
     to action under the procedures of this title shall be 
     submitted by the Chief Executive Officer to the chairman and 
     ranking member of the Committees on the Judiciary of the 
     United States Senate and the House of Representatives. The 
     modification shall take effect only if Congress enacts a 
     joint resolution of approval, described under section 602, 
     regarding the modification. A modification that does not take 
     effect as a result of Congress's failure to approve a joint 
     resolution, or Congress's failure to override the President's 
     veto of a joint resolution, may not be resubmitted to 
     Congress in the same form.
       (b) End-of-Session Submissions.--
       (1) In General.--In addition to the opportunity for 
     approval otherwise provided under this title, in the case of 
     a modification that was submitted to Congress--
       (A) in the case of the Senate, 60 session days; or
       (B) in the case of the House of Representatives, 60 
     legislative days;


[[Page S1231]]


     before the date the Congress adjourns a session of Congress 
     through the date on which the same or succeeding Congress 
     first convenes its next session, section 602 shall apply to 
     such modification in the succeeding session of Congress.
       (2) Treatment.--In applying section 602 for purposes of 
     such additional review, a modification described under 
     paragraph (1) shall be treated as though such modification 
     were submitted to Congress--
       (A) in the case of the Senate, the 15th session day; or
       (B) in the case of the House of Representatives, on the 
     15th legislative day, after the succeeding session of 
     Congress first convenes.

     SEC. 502. CONGRESSIONAL APPROVAL PROCEDURE.

       (a) Joint Resolution.--For purposes of this section, the 
     term ``joint resolution'' means only a joint resolution 
     introduced in the period beginning on the date on which the 
     modification was submitted by the Chief Executive Officer to 
     Congress (i.e., to the chairmen and ranking members of the 
     Committees on the Judiciary of the Senate and the House of 
     Representatives) and ending 60 days thereafter (excluding 
     days either House of Congress is adjourned for more than 3 
     days during a session of Congress), the matter after the 
     resolving clause of which is as follows: ``The Fairness in 
     Asbestos Injury Resolution Act of 2006 is modified as 
     follows: _____ ''. (The blank spaces being filled in with the 
     Chief Executive Officer's proposed change to the Fund that 
     requires congressional approval.)
       (b) Referral.--A joint resolution described in subsection 
     (a) shall be referred to the Committees on the Judiciary of 
     the Senate and House of Representatives.
       (c) Senate report or discharge.--In the Senate, if a joint 
     resolution described in subsection (a) (or an identical joint 
     resolution) has not been reported by the Judiciary Committee 
     at the end of 20 calendar days after the committee received 
     the resolution, the committee may be discharged from further 
     consideration of such joint resolution upon a petition 
     supported in writing by 5 Members of the Senate, and such 
     joint resolution shall be placed on the calendar.
       (d) Procedures.--(1) In the Senate, when the Judiciary 
     Committee has reported, or when the committee is discharged 
     (under subsection (c)) from further consideration of a joint 
     resolution described in subsection (a), it is at any time 
     thereafter in order (even though a previous motion to the 
     same effect has been disagreed to) for a motion to proceed to 
     the consideration of the joint resolution, and all points of 
     order against the joint resolution (and against consideration 
     of the joint resolution) are waived. The motion is not 
     subject to amendment, or to a motion to postpone, or to a 
     motion to proceed to the consideration of other business. A 
     motion to reconsider the vote by which the motion is agreed 
     to or disagreed to shall not be in order. If a motion to 
     proceed to the consideration of the joint resolution is 
     agreed to, the joint resolution shall remain the unfinished 
     business of the Senate until disposed of.
       (2) In the Senate, debate on the joint resolution, and on 
     all debatable motions and appeals in connection therewith, 
     shall be limited to not more than 10 hours, which shall be 
     divided equally between those favoring and those opposing the 
     joint resolution. A motion further to limit debate is in 
     order and not debatable. An amendment to, or a motion to 
     postpone, or a motion to proceed to the consideration of 
     other business, or a motion to recommit the joint resolution 
     is not in order.
       (3) In the Senate, immediately following the conclusion of 
     the debate on a joint resolution described in subsection (a), 
     and a single quorum call at the conclusion of the debate if 
     requested in accordance with the rules of the Senate, the 
     vote on final passage of the joint resolution shall occur.
       (4) Appeals from the decisions of the chair relating to the 
     application of the rules of the Senate to the procedure 
     relating to a joint resolution described in subsection (a) 
     shall be decided without debate.
       (e) Consideration after expiration of time.--In the Senate 
     the procedure specified in subsection (c) or (d) shall not 
     apply to the consideration of a joint resolution respecting a 
     modification of the Fund after the expiration of the 60 
     session days beginning with the submission of the 
     modification by the Chief Executive Officer to Congress.
       (f) Previous action.--If, before the passage by one House 
     of a joint resolution of that House described in subsection 
     (a), that House receives from the other House a joint 
     resolution described in subsection (a), then the following 
     procedures shall apply:
       (1) The joint resolution of the other House shall not be 
     referred to a committee.
       (2) With respect to a joint resolution described in 
     subsection (a) of the House receiving the joint resolution, 
     the procedure in that House shall be the same as if no joint 
     resolution had been received from the other House, except the 
     vote on final passage shall be on the joint resolution of the 
     other House.
       (g) Rulemaking.--This section is enacted by Congress--
       (1) as an exercise of the rulemaking power of the Senate 
     and House of Representatives, respectively, and as such it is 
     deemed a part of the rules of each House, respectively, but 
     applicable only with respect to the procedure to be followed 
     in that House in the case of a joint resolution described in 
     subsection (a), and it supercedes other rules only to the 
     extent that it is inconsistent with such rules; and
       (2) with full recognition of the constitutional right of 
     either House to change the rules (so far as relating to the 
     procedure of that House) at any time, in the same manner, and 
     to the same extent as in the case of any other rule of that 
     House.
                                 ______
                                 
  SA 2803. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       (a) Short Title.--This Act may be cited as the ``Fairness 
     in Asbestos Injury Resolution Act of 2006'' or the ``FAIR Act 
     of 2006''.

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds the following:
       (1) Millions 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.
       (8) This crisis has also imposed a deleterious burden upon 
     the United States bankruptcy courts, which have assumed a 
     heavy burden of administering complicated and protracted 
     bankruptcies with limited personnel.
       (9) This crisis has devastated many communities across the 
     country, but hardest hit has been Libby, Montana, where 
     tremolite asbestos, one of the most deadly forms of asbestos, 
     was contained in the vermiculite ore mined from the area and 
     despite ongoing cleanup by the Environmental Protection 
     Agency, many still suffer from the deadly dust.
       (10) The asbestos found in Libby, Montana, tremolite 
     asbestos, has demonstrated an unusually high level of 
     toxicity, as compared to chrysotile asbestos. Diseases 
     contracted from this tremolite asbestos are unique and highly 
     progressive. These diseases typically manifest in a 
     characteristic pleural disease pattern, and often result in 
     severe impairment or death without radiographic interstitial 
     disease or typical chrysotile markers of radiographic 
     severity. According to the Agency for Toxic Substances and 
     Disease Registry previous studies by the National Institutes 
     of Occupational Safety and Health document significantly 
     increased rates of pulmonary abnormalities and disease 
     (asbestosis and lung cancer) among former workers.
       (11) Environmental Protection Agency supported studies have 
     determined that the raw vermiculite ore mined and milled in 
     Libby, Montana contained 21 to 26 percent asbestos, by 
     weight. The milled ore, resulting from the processing in 
     Libby, which was shipped out of Libby contained markedly 
     reduced percentages of asbestos. A 1982 Environmental 
     Protection Agency-supported study concluded that ore shipped 
     out of Libby contained 0.3 to 7 percent asbestos, by weight.
       (12) In Libby, Montana, exposure pathways are and were not 
     limited to the workplace, rather, for decades there has been 
     an unprecedented 24 hour per day contamination of the 
     community's homes, playgrounds, gardens, and community air, 
     such that the entire

[[Page S1232]]

     community of Libby, Montana, has been designated a Superfund 
     site and is listed on the Environmental Protection Agency's 
     National Priorities List.
       (13) These multiple exposure pathways have caused severe 
     asbestos disease and death not only in former workers at the 
     mine and milling facilities, but also in the workers' spouses 
     and children, and in community members who had no direct 
     contact with the mine. According to the Environmental 
     Protection Agency, some potentially important alternative 
     pathways for past asbestos exposure include elevated 
     concentrations of asbestos in ambient air and recreational 
     exposures from children playing in piles of vermiculite. 
     Furthermore, the Environmental Protection Agency has 
     determined that current potential pathways of exposure 
     include vermiculite placed in walls and attics as thermal 
     insulation, vermiculite or ore used as road bed material, ore 
     used as ornamental landscaping, and vermiculite or 
     concentrated ore used as a soil and garden amendment or 
     aggregate in driveways.
       (14) The Environmental Protection Agency also concluded, 
     ``Asbestos contamination exists in a number of potential 
     source materials at multiple locations in and around the 
     residential and commercial area of Libby. . . While data are 
     not yet sufficient to perform reliable human-health risk 
     evaluations for all sources and all types of disturbance, it 
     is apparent that releases of fiber concentrations higher than 
     Occupational Safety and Health Administration standards may 
     occur in some cases . . . and that screening-level estimates 
     of lifetime excess cancer risk can exceed the upper-bound 
     risk range of 1E-04 usually used by the Environmental 
     Protection Agency for residents under a variety of exposure 
     scenarios. The occurrence of non-occupational asbestos-
     related disease that has been observed among Libby residents 
     is extremely unusual, and has not been associated with 
     asbestos mines elsewhere, suggesting either very high and 
     prolonged environmental exposures and/or increased toxicity 
     of this form of amphibole asbestos.''.
       (15) According to a November 2003 article from the Journal 
     Environmental Health Perspectives titled, Radiographic 
     Abnormalities and Exposure to Asbestos-Contaminated 
     Vermiculite in the Community of Libby, Montana, USA, Libby 
     residents who have evidence of ``no apparent exposure'', 
     i.e., did not work with asbestos, were not a family member of 
     a former worker, etc., had a greater rate of pleural 
     abnormalities (6.7 percent) than did those in control groups 
     or general populations found in other studies from other 
     states (which ranged from 0.2 percent to 4.6 percent). 
     ``Given the ubiquitous nature of vermiculite contamination in 
     Libby, along with historical evidence of elevated asbestos 
     concentrations in the air, it would be difficult to find 
     participants who could be characterized as unexposed.''.
       (16) Nothing in this Act is intended to increase the 
     Federal deficit or impose any burden on the taxpayer. The 
     Office of Asbestos Disease Compensation established under 
     this Act shall be privately funded by annual payments from 
     defendant participants that have been subject to asbestos 
     liability and their insurers. Section 406(b) of this Act 
     expressly provides that nothing in this Act shall be 
     construed to create any obligation of funding from the United 
     States or to require the United States to satisfy any claims 
     if the amounts in the Fund are inadequate. Any borrowing by 
     the Fund is limited to monies expected to be paid into the 
     Fund, and the Administrator shall have no fiscal authority 
     beyond the amount of private money coming into the Fund. This 
     Act provides the Administrator with broad enforcement 
     authority to pursue debts to the Fund owed by defendant 
     participants or insurer participants and their successors in 
     interest.
       (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 worsen;
       (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) asbestiform amphibole minerals;
       (J) any of the minerals listed under subparagraphs (A) 
     through (I) that has been chemically treated or altered, and 
     any asbestiform variety, type, or component thereof; and
       (K) 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--
       (i) claims alleging damage or injury to tangible property;
       (ii) claims for benefits under a workers' compensation law 
     or veterans' benefits program;
       (iii) claims arising under any governmental or private 
     health, welfare, disability, death or compensation policy, 
     program or plan;
       (iv) claims arising under any employment contract or 
     collective bargaining agreement;
       (v) claims arising out of medical malpractice; or
       (vi) any claim arising under--

       (I) the Americans with Disabilities Act of 1990 (42 U.S.C. 
     12101 et seq.);
       (II) title VII of the Civil Rights Act of 1964 (42 U.S.C. 
     2000e et seq.);
       (III) the Age Discrimination in Employment Act of 1967 (29 
     U.S.C. 621 et seq.);
       (IV) the Equal Pay Act of 1963 (29 U.S.C. 206);
       (V) the Family and Medical Leave Act of 1993 (29 U.S.C. 
     2601 et seq.);
       (VI) section 1979 of the Revised Statutes of the United 
     States (42 U.S.C. 1983); or
       (VII) the Rehabilitation Act of 1973 (29 U.S.C. 701 et 
     seq.).

       (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 final 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 the extent that an illness meets 
     the medical criteria requirements established under subtitle 
     C of title I.
       (8) Employers' liability act.--The term ``Act of April 22, 
     1908 (45 U.S.C. 51 et seq.), commonly known as the Employer's 
     Liability Act'' shall, for all purposes of this Act, include 
     the Act of June 5, 1920 (46 U.S.C. App. 688), commonly known 
     as the Jones Act, and the related phrase ``operations as a 
     common carrier by railroad'' shall include operations as an 
     employer of seamen.
       (9) Fund.--The term ``Fund'' means the Asbestos Injury 
     Claims Resolution Fund established under section 221.
       (10) 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.
       (11) Law.--The term ``law'' includes all law, judicial or 
     administrative decisions, rules, regulations, or any other 
     principle or action having the effect of law.
       (12) 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).
       (13) Person.--The term ``person''--

[[Page S1233]]

       (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.
       (14) 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.
       (15) Substantially continues.--The term ``substantially 
     continues'' means that the business operations have not been 
     significantly modified by the change in ownership.
       (16) Successor in interest.--The term ``successor in 
     interest'' means any person that, in 1 or a series of 
     transactions, acquires all or substantially all of the assets 
     and properties (including, without limitation, under section 
     363(b) or 1123(b)(4) of title 11, United States Code), 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.
       (17) 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.
       (18) 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 Employers' Liability Act, 
     or damages recovered by any employee in a liability action 
     against an employer.
       (19) 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.
       (20) 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.
       (21) 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.

                  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) Termination of the office.--The Office of Asbestos 
     Disease Compensation shall terminate effective not later than 
     12 months following certification by the Administrator that 
     the Fund has neither paid a claim in the previous 12 months 
     nor has debt obligations remaining to pay.
       (4) Expenses.--There shall be available from the Fund to 
     the Administrator such sums as are necessary for any and all 
     expenses associated with the Office of Asbestos Disease 
     Compensation and necessary to carry out the purposes of this 
     Act. Expenses covered should include--
       (A) management of the Fund;
       (B) personnel salaries and expenses, including retirement 
     and similar benefits;
       (C) the sums necessary for conducting the studies required 
     under this Act;
       (D) all administrative and legal expenses; and
       (E) any other sum that could be attributable to the Fund.
       (b) Appointment of Administrator.--
       (1) In general.--The Administrator of the Office of 
     Asbestos Disease Compensation shall be appointed by the 
     President. The Administrator shall serve for a term of 10 
     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 nongovernmental 
     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 primary 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

[[Page S1234]]

     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 terminal circumstances in order to expedite the payment 
     of such claims as soon as possible after startup of the Fund. 
     The Administrator shall contract out the processing of such 
     claims.
       (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 of financial records.--
       (A) In general.--Any person may label any record submitted 
     under this section as a confidential commercial or financial 
     record for the purpose of requesting exemption from 
     disclosure under section 552(b)(4) of title 5, United States 
     Code.
       (B) Duties of administrator and chairman of the asbestos 
     insurers commission.--The Administrator and Chairman of the 
     Asbestos Insurers Commission--
       (i) shall adopt procedures for--

       (I) handling submitted records marked confidential; and
       (II) protecting from disclosure records they determine to 
     be confidential commercial or financial information exempt 
     under section 552(b)(4) of title 5, United States Code; and

       (ii) may establish a pre-submission determination process 
     to protect from disclosure records on reserves and asbestos-
     related liabilities submitted by any defendant participant 
     that is exempt under section 552(b)(4) of title 5, United 
     States Code.
       (C) Review of complaints.--Nothing in this section shall 
     supersede or preempt the de novo review of complaints filed 
     under section 552(b)(4) of title 5, United States Code.
       (3) Confidentiality of medical records.--Any claimant may 
     designate any record submitted under this section as a 
     confidential personnel or medical file 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.

     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 20 members, appointed by the President.
       (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, administering a compensation or 
     insurance program, or as actuaries, auditors, or investment 
     managers. 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 15 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 10 years.
       (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, State, or local 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 shall 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 15 
     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 120 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 and any other 
     appropriate paralegal assistance;
       (3) respond to inquiries from claimants and potential 
     claimants;
       (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; and
       (5) provide for the establishment of a website where 
     claimants may access all relevant forms and information.
       (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) Limitation.--
       (A) 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 
     the Fund, more than a reasonable attorney's fee.
       (ii) Calculation of reasonable fee.--Any fee obtained under 
     clause (i) shall be calculated by multiplying a reasonable 
     hourly rate by the number of hours reasonably expended on the 
     claim of the individual.
       (iii) Requirements for compensation.--A representative of 
     an individual shall not be eligible to receive a fee under 
     clause (i), unless--

       (I) such representative submits to the Administrator 
     detailed contemporaneous billing records for any work 
     actually performed in the course of representation of an 
     individual; and
       (II) the Administrator finds, based on billing records 
     submitted by the representative

[[Page S1235]]

     under subclause (I), that the work for which compensation is 
     sought was reasonably performed, and that the requested 
     hourly fee is reasonable.

       (2) Penalty.--Any representative of an asbestos claimant 
     who violates this subsection shall be fined not more than the 
     greater of--
       (A) $5,000; or
       (B) twice the amount received by the representative for 
     services rendered in connection with each such violation.

     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 Physicians 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.--Except as provided under subparagraph 
     (B), each Physicians Panel shall consist of 3 physicians, 2 
     of whom shall be designated to participate in each case 
     submitted to the Physicians 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 not more than 15 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 a 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 
     a Physician Panel such compensation as is reasonably 
     necessary to obtain their services.
       (f) Federal Advisory Committee Act.--A Physicians 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) Immediate Startup.--
       (1) In general.--Subject to section 101(d), the 
     Administrator may--
       (A) start receiving, reviewing, and deciding claims 
     immediately upon the date of enactment of this Act; and
       (B) reimburse the Department of Labor from the Fund for any 
     expense incurred--
       (i) before that date of enactment in preparation for 
     carrying out any of the responsibilities of the Administrator 
     under this Act; and
       (ii) during the 60-day period following that date of 
     enactment to carry out such responsibilities.
       (2) Interim regulations.--Not later than 90 days after the 
     date of enactment of this Act, the Administrator shall 
     promulgate interim regulations and procedures for the 
     processing of claims under this title and the operation of 
     the Fund under title II, including procedures for the 
     expediting of terminal health claims, and processing of 
     claims through the claims facility.
       (b) Interim Personnel and Contracting.--The Secretary of 
     Labor and the Assistant Secretary of Labor for the Employment 
     Standards Administration shall 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 including entering into contracts on an expedited or 
     sole source basis during the startup period for the purpose 
     of processing claims or providing financial analysis or 
     assistance. 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) Terminal Health Claims.--
       (1) In general.--The Administrator shall develop 
     procedures, as provided in section 106(f), to provide for an 
     expedited process to categorize, evaluate, and pay terminal 
     health claims. Such procedures, as provided in section 
     106(f), shall include, pending promulgation of final 
     regulations, adoption of interim regulations as needed for 
     processing of terminal health claims.
       (2) Eligible terminal health claims.--A claim shall qualify 
     for treatment as a terminal health claim if--
       (A) the claimant is living and provides a diagnosis of 
     mesothelioma meeting the requirements of section 121(d)(9);
       (B) the claimant is living and provides a credible 
     declaration or affidavit, from a diagnosing 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 due 
     to such asbestos-related illness; or
       (C) the claimant is the spouse or child of an eligible 
     terminal health claimant who--
       (i) was living when the claim was filed with the Fund, or 
     if before the implementation of interim regulations for the 
     filing of claims with the Fund, on the date of enactment of 
     this Act;
       (ii) has since died from a malignant disease or condition; 
     and
       (iii) has not received compensation from the Fund for the 
     disease or condition for which the claim was filed.
       (3) Additional terminal health claims.--The Administrator 
     may, in final regulations promulgated under section 101(c), 
     designate additional categories of claims that qualify as 
     terminal health claims under this subsection except that 
     exceptional medical claims may not proceed.
       (4) Claims facility.--To facilitate the prompt payment of 
     terminal health claims prior to the Fund being certified as 
     operational, the Administrator shall contract with a claims 
     facility, which applying the medical criteria of section 121, 
     shall process and pay claims in accordnace with section 
     106(f)(2). The processing and payment of claims shall be 
     subject to regulations promulgated under this Act.
       (5) Authorization for contracts with claims facilities.--
     The Administrator may enter into contracts with a claims 
     facility for the processing of claims (except for exceptional 
     medical claims) in accordance with this title.
       (d) Prioritization of Claims.--The Administrator shall, in 
     final regulations promulgated under section 101(c), designate 
     categories of claims to be handled on an expedited basis. The 
     Administrator shall prioritize the processing and payment of 
     health claims involving claimants with the most serious 
     health claims. The Administrator shall also prioritize claims 
     from claimants who face 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 exposure to asbestos was a 
     substantial contributing factor for the illness in question.
       (f) Stay of Claims.--
       (1) Stay of claims.--Notwithstanding any other provision of 
     this Act, any asbestos claim pending on the date of enactment 
     of this Act is stayed.
       (2) Terminal health claims.--
       (A) Procedures for settlement of terminal health claims.--
       (i) In general.--Any person that has filed a terminal 
     health claim, as provided under subsection (c)(2), seeking a 
     judgment or order for monetary damages in any Federal or 
     State court before the date of the enactment of this Act, 
     shall seek a settlement in accordance with this paragraph. 
     Any person with a terminal health claim, as provided under 
     subsection (c)(2), that arises after such date of enactment 
     shall seek a settlement in accordance with this paragraph.
       (ii) Filing.--

       (I) In general.--At any time before the Fund or claims 
     facility is certified as operational and paying terminal 
     health claims at a reasonable rate, any person with a 
     terminal health claim as described under clause (i) shall 
     file a notice of their intent to seek a settlement or shall 
     file their exigent health claim with the Administrator or 
     claims facility. Filing of an exigent health claim with the 
     Administrator or claims facility may serve as notice of 
     intent to seek a settlement.
       (II) Exception.--Any person who seeks compensation for an 
     exigent health claim from a trust in accordance with section 
     402(f) shall not be eligible to seek a settlement or 
     settlement offer under this paragraph.

       (iii) Terminal health claim information.--To file a 
     terminal health claim, each individual shall provide all of 
     the following information:

       (I) The amount received or entitled to be received as a 
     result of all collateral source compensation under section 
     134, and copies of all settlement agreements and related 
     documents sufficient to show the accuracy of that amount.
       (II) A description of any claims for compensation for an 
     asbestos related injury or disease filed by the claimant with 
     any trust

[[Page S1236]]

     or class action trust, and the status or disposition or any 
     such claims.
       (III) All information that the claimant would be required 
     to provide to the Administrator in support of a claim under 
     sections 113(c) and 121.
       (IV) A certification by the claimant that the information 
     provided is true and complete. The certification provided 
     under this subclause shall be subject to the same penalties 
     for false or misleading statements that would be applicable 
     with regard to information provided to the Administrator or 
     claims facility in support of a claim.
       (V) For terminal health claims arising after the date of 
     enactment of this Act, the claimant shall identify each 
     defendant that would be an appropriate defendant in a civil 
     action seeking damages for the asbestos claim of the 
     claimant. Identification of all potential participants shall 
     be made in good faith by the claimant.

       (iv) Timing.--A claimant who has filed a notice of their 
     intent to seek a settlement under clause (ii) shall within 60 
     days after filing notice provide to the Administrator or 
     claims facility the information required under clause (iii). 
     If a claimant has filed an exigent health claim under clause 
     (ii) the Administrator shall provide all affected defendants 
     the information required under clause (iii).
       (v) Website.--

       (I) Posting.--The Administrator or claims facility shall 
     post the information described in subclause (II) to a secure 
     website, accessible on a passcode-protected basis to 
     participants.
       (II) Required information.--The website established under 
     subclause (I) shall contain a listing of--

       (aa) each claimant that has filed a notice of intent to 
     seek a settlement or claim under this clause;
       (bb) the name of such claimant; and
       (cc) if applicable--
       (AA) the name of the court where such claim was filed;
       (BB) the case or docket number of such claim; and
       (CC) the date such claim was filed.

       (III) Prohibitions.--The website established under 
     subclause (I) shall not contain specific health or medical 
     information or social security numbers.
       (IV) Participant access.--A participant's access to the 
     website established under subclause (I) shall be limited on a 
     need to know basis, and participants shall not disclose or 
     sell data, or retain data for purposes other than paying an 
     asbestos claim.
       (V) Violations.--Any person or other entity that violates 
     any provision of this clause, including by breaching any data 
     posted on the website, shall be subject to an injunction, or 
     civil penalties, or both.

       (vi) Administrator or claims facility certification of 
     settlement.--

       (I) Determination.--Within 60 days after the information 
     under clause (iii) is provided, the Administrator or claims 
     facility shall determine whether or not the claim meets the 
     requirements of a terminal health claim.
       (II) Requirements met.--If the Administrator or claims 
     facility determines that the claim meets the requirements of 
     a terminal health claim, the Administrator or claims facility 
     shall immediately--

       (aa) issue and serve on all parties a certification of 
     eligibility of such claim;
       (bb) determine the value of such claim under the Fund by 
     subtracting from the amount in section 131 the total amount 
     of collateral source compensation received by the claimant; 
     and
       (cc) pay the award of compensation to the claimant under 
     clause (xiii).

       (III) Requirements not met.--If the requirements under 
     clause (iii) are not met, the claimant shall have 30 days to 
     perfect the claim. If the claimant fails to perfect the claim 
     within that 30-day period or the Administrator or claims 
     facility determines that the claim does not meet the 
     requirements of a terminal health claim, the claim shall not 
     be eligible to proceed under this paragraph. A claimant may 
     appeal any decision issued by a claims facility with the 
     Administrator in accordance with section 114.

       (vii) Failure to certify.--If the Administrator or claims 
     facility is unable to process the claim and does not make a 
     determination regarding the certification of the claim as 
     required under clause (vi), the Administrator or claims 
     facility shall within 10 days after the end of the 60-day 
     period referred to under clause (vi)(I) provide notice of the 
     failure to act to the claimant and the defendants in the 
     pending Federal or State court action or the defendants 
     identified under clause (iii)(IV). If the Administrator or 
     claims facility fails to provide such notice within 10 days, 
     the claimant may elect to provide the notice to the affected 
     defendants to prompt a settlement offer. The Administrator or 
     claims facility shall list all terminal health claims for 
     which notice has been provided under this clause on the 
     website established under clause (v).
       (viii) Failure to pay.--If the Administrator or claims 
     facility does not pay the award as required under clause 
     (xiii), the Administrator shall refer the certified claim 
     within 10 days as a certified terminal health claim to the 
     defendants in the pending Federal and State court action or 
     to the potential defendants identified under clause (iii)(IV) 
     for terminal claims arising after the date of enactment of 
     this Act. The Administrator or claims facility shall list all 
     terminal health claims for which notice has been provided 
     under this clause on the website established under clause 
     (v).
       (ix) Settlement offer.--Any participant or participants 
     may, within 30 days after receipt of such notice as provided 
     under clause (vii) or (viii), file and serve on all parties 
     and the Administrator a good faith settlement offer in an 
     aggregate amount not to exceed the total amount to which the 
     claimant would receive under section 131. If the aggregate 
     amount offered by all participants exceeds the award 
     determined by the Administrator, all offers shall be deemed 
     reduced pro-rata until the aggregate amount equals the award 
     amount. An acceptance of such settlement offer for claims 
     pending before the date of enactment of this Act shall be 
     subject to approval by the trial judge or authorized 
     magistrate in the court where the claim is pending. The court 
     shall approve any such accepted offer within 20 days after a 
     request, unless there is evidence of bad faith or fraud. No 
     court approval is necessary if the terminal health claim was 
     certified by the Administrator or claims facility under 
     clause (vi).
       (x) Acceptance or rejection.--Within 20 days after receipt 
     of the settlement offer, or the amended settlement offer, the 
     claimant shall either accept or reject such offer in writing. 
     If the amount of the settlement offer made by the 
     Administrator, claims facility, or participants equals 100 
     percent of what the claimant would receive under the Fund, 
     the claimant shall accept such settlement in writing.
       (xi) Opportunity to cure.--If the settlement offer is 
     rejected for being less than what the claimant would receive 
     under the Fund, the participants shall have 10 business days 
     to make an amended offer. If the amended offer equals 100 
     percent of what the claimant would receive under the Fund, 
     the claimant shall accept such settlement offer in writing.
       (xii) Payment schedule.--

       (I) Mesothelioma claimants.--For mesothelioma claimants--

       (aa) an initial payment of 50 percent shall be made within 
     30 days after the date the settlement is accepted and the 
     second and final payment shall be made 6 months after date 
     the settlement is accepted; or
       (bb) if the Administrator determines that the payment 
     schedule would impose a severe financial hardship on the 
     Fund, or if the court determines that the settlement offer 
     would impose a severe financial hardship on the participant, 
     the payments may be extended 50 percent in 6 months and 50 
     percent 11 months after the date the settlement offer is 
     accepted.

       (II) Other terminal claimants.--For other terminal 
     claimants, as defined under section 106(c)(2)(B) and (C)--

       (aa) the initial payment of 50 percent shall be made within 
     6 months after the date the settlement is accepted and the 
     second and final payment shall be made 12 months after date 
     the settlement is accepted; or
       (bb) if the Administrator determines that the payment 
     schedule would impose a severe financial hardship on the 
     Fund, or if the court determines that the settlement offer 
     would impose a severe financial hardship on the participants, 
     the payments may be extended 50 percent within 1 year after 
     the date the settlement offer is accepted and 50 percent in 2 
     years after date the settlement offer is accepted.

       (III) Release.--Once a claimant has received final payment 
     of the accepted settlement offer, and penalty payment if 
     applicable, the claimant shall release any outstanding 
     asbestos claims.

       (xiii) Recovery of costs.--

       (I) In general.--Any participant whose settlement offer is 
     accepted may recover the cost of such settlement by deducting 
     from the participant's next and subsequent contributions to 
     the Fund the full amount of the payment made by such 
     participant to the terminal health claimant, unless the 
     Administrator finds, on the basis of clear and convincing 
     evidence, that the participant's offer is not in good faith. 
     Any such payment shall be considered a payment to the Fund 
     for purposes of section 404(e)(1) and in response to the 
     payment obligations imposed on participants in title II.
       (II) Reimbursement.--Notwithstanding subclause (I), if the 
     deductions from the participant's next and subsequent 
     contributions to the Fund do not fully recover the cost of 
     such payments on or before its third annual contribution to 
     the Fund, the Fund shall reimburse such participant for such 
     remaining cost not later than 6 months after the date of the 
     third scheduled Fund contribution.

       (4) Reservation of rights.--Participation in the offer and 
     settlement process under this subsection shall not affect or 
     prejudice any rights or defenses a party might have in any 
     litigation.

     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 200 miles;
       (2) administer oaths;
       (3) examine witnesses;
       (4) require the production of books, papers, documents, and 
     other evidence; and
       (5) request assistance from other Federal agencies with the 
     performance of the duties of the Administrator under this 
     Act.

[[Page S1237]]

          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 
     sections 106(f)(2) and 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 or incompetent) 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 on December 31, 2004.
       (3) Limitation.--A claim may not be filed by any person 
     seeking contribution or indemnity.
       (4) Effect of multiple injuries.--
       (A) In general.--A claimant who receives an award for an 
     eligible disease or condition shall not be precluded from 
     submitting claims for and receiving additional awards under 
     this title for any higher disease level for which the 
     claimant becomes eligible, subject to appropriate setoffs as 
     provided under section 134.
       (B) Libby, montana claims.--
       (i) In general.--Notwithstanding subparagraph (A), if a 
     Libby, Montana claimant worsens in condition, as measured by 
     pulmonary function tests, such that a claimant qualifies for 
     a higher nonmalignant level, the claimant shall be eligible 
     for an additional award, at the appropriate level, offset by 
     any award previously paid under this Act, such that a 
     claimant would qualify for Level IV if the claimant satisfies 
     section 121(f)(8), and would qualify for Level V if the 
     claimant provides--

       (I) a diagnosis of bilateral asbestos related nonmalignant 
     disease;
       (II) evidence of TLC or FVC less than 60 percent; and
       (III) supporting medical documentation establishing 
     asbestos exposure as a substantial contributing factor in 
     causing the pulmonary condition in question, and excluding 
     more likely causes of that pulmonary condition.

       (ii) Subsequent malignant disease.--If a Libby, Montana, 
     claimant develops malignant disease, such that the claimant 
     qualifies for Level VI, VII, VIII, or IX, subparagraph (A) 
     shall apply.
       (b) Statute of Limitations.--
       (1) In general.--If a claim is not filed with the Office 
     within the limitations period specified in this subsection 
     for that category of claim, such claim shall be extinguished, 
     and any recovery thereon shall be prohibited.
       (2) Initial claims.--An initial claim for an award under 
     this Act shall be filed within 2 years after the date on 
     which the claimant first received a medical diagnosis and 
     medical test results sufficient to satisfy the criteria for 
     the disease level for which the claimant is seeking 
     compensation.
       (3) Claims for additional awards.--
       (A) Non-malignant diseases.--If a claimant has previously 
     filed a timely initial claim for compensation for any non-
     malignant disease level, there shall be no limitations period 
     applicable to the filing of claims by the claimant for 
     additional awards for higher disease levels based on the 
     progression of the non-malignant disease.
       (B) Malignant diseases.--Regardless of whether the claimant 
     has previously filed a claim for compensation for any other 
     disease level, a claim for compensation for a malignant 
     disease level shall be filed within 2 years after the 
     claimant first obtained a medical diagnosis and medical test 
     results sufficient to satisfy the criteria for the malignant 
     disease level for which the claimant is seeking compensation.
       (4) Effect on pending claims.--
       (A) In general.--If, on the date of enactment of this Act, 
     an asbestos claimant has any timely filed asbestos claim that 
     is preempted under section 403(e), such claimant shall file a 
     claim under this section within 2 years after such date of 
     enactment, or any claim relating to that injury, and any 
     other asbestos claim related to that injury shall be 
     extinguished, and recovery on any such claim shall be 
     prohibited.
       (B) Special rule.--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--
       (i) a non-contingent right to the payment of future 
     installments of a fixed award; or
       (ii) 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.
       (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) an employment history sufficient to establish required 
     asbestos exposure, accompanied by social security or other 
     payment 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, or Malignant Level VIII, 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 the Fund or claims facility 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.
       (d) 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

[[Page S1238]]

     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 such documents 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. Such fees and mileage shall be 
     paid from the Fund.
       (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 
     the claimant believes relevant.
       (e) 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 (d).
       (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.
       (f) Representation.--A claimant may authorize an attorney 
     or other individual to represent him or her in any proceeding 
     under this Act.

     SEC. 115. AUDITING PROCEDURES.

       (a) In General.--
       (1) Development.--The Administrator shall develop methods 
     for auditing and evaluating the medical and exposure evidence 
     submitted as part of the claims process. 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, medical facility or 
     attorney or law firm is not consistent with prevailing 
     medical practices or the applicable requirements of this Act, 
     any medical evidence from such physician, facility or 
     attorney or law firm 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.--The Administrator shall prescribe 
     procedures to randomly evaluate the x-rays submitted in 
     support of a statistically significant number of claims by 
     independent certified B-readers, the cost of which shall be 
     paid by the Fund.
       (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, or 
     Malignant Level VIII, 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.--
       (A) In general.--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, 
     VII, or VIII, or as an exceptional medical claim, the cost of 
     which shall be paid by the Fund.
       (B) Serum cotinine screening.--The Administrator shall 
     require the performance of serum cotinine screening on all 
     claimants who assert they are nonsmokers or ex-smokers for 
     purposes of an award under Malignant Level VI, VII, or VIII, 
     or as an exceptional medical claim, the cost of which shall 
     be paid by the Fund.
       (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).
       (d) Pulmonary Function Testing.--The Administrator shall 
     develop auditing procedures for pulmonary function test 
     results submitted as part of a claim, to ensure that such 
     tests are conducted in accordance with American Thoracic 
     Society Criteria, as defined under section 121(a)(13).

                      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.
       (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 a claimant 
     who--
       (A) never smoked; or
       (B) has smoked fewer than 100 cigarettes or the equivalent 
     amount of other tobacco products during the claimant's 
     lifetime.
       (12) PO2.--The term ``PO2'' means the 
     partial pressure (tension) of oxygen, which measures the 
     amount of dissolved oxygen in the blood.

[[Page S1239]]

       (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 a significant amount of 
     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 a 
     significant amount of 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 a significant amount of 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 a significant 
     amount of 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\ of its value. Each year 
     after 1986 shall be counted as \1/10\ of 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 nonmalignant asbestos-
     related disease; or
       (ii) an x-ray reading by a certified B-reader;
       (C) for disease Levels VI through IX, 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 IX, 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) Proof of exposure.--
       (A) Affidavits.--Exposure to asbestos sufficient to satisfy 
     the exposure requirements for any disease level may be 
     established by a detailed and specific affidavit that--
       (i) is filed by--

       (I) the claimant; or
       (II) if the claimant is deceased, a coworker or a family 
     member of the claimant; and

       (ii) is found in proceedings under this title to be--

       (I) reasonably reliable, attesting to the claimant's 
     exposure; and
       (II) credible and not contradicted by other evidence.

       (B) Other proof.--Exposure to asbestos may alternatively be 
     established by invoices, construction or other similar 
     records, or any other reasonably reliable and credible 
     evidence.
       (C) Additional evidence.--The Administrator may require 
     submission of other or additional evidence of exposure, if 
     available, for a particular claim when determined necessary, 
     as part of the minimum information required under section 
     113(c).
       (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 IX 
     (mesothelioma), all claims alleging take-home exposure shall 
     be submitted as an exceptional medical claim under section 
     121(g) 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, 2004. Claimants under this section shall provide such 
     supporting documentation as the Administrator shall require.
       (6) Penalty for false statement.--Any false information 
     submitted under this subsection shall be subject to section 
     1348 of title 18, United States Code (as added by this Act).
       (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

[[Page S1240]]

     present in both lower lung zones, or asbestosis determined by 
     pathology, or blunting of either costophrenic angle and 
     bilateral pleural plaque;
       (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, such as a written 
     opinion by the examining or diagnosing physician, according 
     to the diagnostic guidelines in section 121(b)(2), 
     establishing asbestos exposure as the cause of 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;
       (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;
       (C) evidence of 5 or more weighted years of substantial 
     occupational exposure to asbestos; and
       (D) supporting medical documentation, such as a written 
     opinion by the examining or diagnosing physician, according 
     to the diagnostic guidelines in section 121(b)(2)--
       (i) establishing asbestos exposure as the cause of 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--
       (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, such as a written 
     opinion by the examining or diagnosing physician, according 
     to the diagnostic guidelines in section 121(b)(2)--
       (i) establishing asbestos exposure as the cause of the 
     pulmonary condition in question; and
       (ii) excluding other more likely causes, other than silica, 
     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;
       (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; 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, such as a written 
     opinion by the examining or diagnosing physician, according 
     to the diagnostic guidelines in section 121(b)(2)--
       (i) establishing asbestos exposure as the cause of the 
     pulmonary condition in question; and
       (ii) excluding other more likely causes, other than silica, 
     of that pulmonary condition.
       (8) Malignant level viii.--
       (A) In general.--To receive Level VIII compensation, a 
     claimant shall provide a diagnosis--
       (i) of a primary lung cancer disease on the basis of 
     findings by a board certified pathologist;
       (ii)(I) 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) 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;

       (III) asbestosis determined by pathology and 10 or more 
     weighted years of substantial occupational exposure to 
     asbestos; and
       (iii) supporting medical documentation, such as a written 
     opinion by the examining or diagnosing physician, according 
     to the diagnostic guidelines in section 121(b)(2), 
     establishing asbestos exposure as the cause of the lung 
     cancer in question; and 10 or more weighted years of 
     substantial occupational exposure to asbestos.
       (9) Malignant level ix.--To receive Level IX 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; 
     or
       (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.
       (g) 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.
       (E) Mesothelioma cases.--
       (i) In general.--The Physicans Panel shall grant priority 
     status to--

       (I) all Level IX claims with other identifiable asbestos 
     exposure as provided under paragraph (9)(B)(iv); and
       (II) all Level IX claims that are filed as exceptional 
     medical claims.

       (ii) Physician panel.--If the Physicians Panel issues a 
     certificate of medical eligibility, the claimant shall be 
     deemed to qualify for Level IX compensation. If the 
     Physicians Panel rejects the claim, and the Administrator 
     deems it rejected, the claimant may immediately seek judicial 
     review under section 302.
       (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 
     shall 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 give due consideration to the 
     recommendation of the Physicians Panel in determining 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.--
       (A) In general.--A Libby, Montana, claimant may elect to 
     have the claimant's claims 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, 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, 
     Montana.
       (B) Claims.--For all claims for Levels II through IV filed 
     by Libby, Montana claimants, as described under subsection 
     (c)(4), once the Administrator or the Physicians Panel issues 
     a certificate of medical eligibility to a Libby, Montana 
     claimant, and notwithstanding the disease category designated 
     in the certificate or the eligible disease or condition 
     established in accordance with this section, or the value of 
     the award

[[Page S1241]]

     determined in accordance with section 114, the Libby, Montana 
     claimant shall be entitled to an award that is not less than 
     that awarded to claimants who suffer from asbestosis, Level 
     IV. For all malignant claims filed by Libby, Montana 
     claimants, the Libby, Montana claimant shall be entitled to 
     an award that corresponds to the malignant disease category 
     designated by the Administrator or the Physicians Panel.
       (C) Evaluation of claims.--For purposes of evaluating 
     exceptional medical claims from Libby, Montana, a claimant 
     shall be deemed to have a comparable asbestos-related 
     condition to an asbestos disease category Level IV, and shall 
     be deemed to qualify for compensation at Level IV, if the 
     claimant provides--
       (i) a diagnosis of bilateral asbestos related nonmalignant 
     disease;
       (ii) evidence of TLC or FVC less than 80 percent; and
       (iii) supporting medical documentation establishing 
     asbestos exposure as a substantial contributing factor in 
     causing the pulmonary condition in question, and excluding 
     more likely causes of that pulmonary condition.
       (9) Study of vermiculite processing facilities.--
       (A) In general.--As part of the ongoing National Asbestos 
     Exposure Review (in this section referred to as ``NAER'') 
     being conducted by the Agency for Toxic Substances and 
     Disease Registry (in this section referred to as ``ATSDR'') 
     of facilities that received vermiculite ore from Libby, 
     Montana, the ATSDR shall conduct a study of all Phase 1 sites 
     where--
       (i) the Environmental Protection Agency has mandated 
     further action at the site on the basis of current 
     contamination; or
       (ii) the site was an exfoliation facility that processed 
     roughly 100,000 tons or more of vermiculite from the Libby 
     mine.
       (B) Study by atsdr.--The study by the ATSDR shall evaluate 
     the facilities identified under subparagraph (A) and 
     compare--
       (i) the levels of asbestos emissions from such facilities;
       (ii) the resulting asbestos contamination in areas 
     surrounding such facilities;
       (iii) the levels of exposure to residents living in the 
     vicinity of such facilities;
       (iv) the risks of asbestos-related disease to the residents 
     living in the vicinity of such facilities; and
       (v) the risk of asbestos-related mortality to residents 
     living in the vicinity of such facilities,

     to the emissions, contamination, exposures, and risks 
     resulting from the mining of vermiculite ore in Libby, 
     Montana.
       (C) Results of study.--The results of the study required 
     under this paragraph shall be transmitted to the 
     Administrator.

                           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 and 
     the matrices developed under 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 as determined under this 
     subsection. The award for all asbestos claimants with an 
     eligible disease or condition established in accordance with 
     section 121 shall be according to the following schedule:

       LevScheduled Condition or Disease  Scheduled Value
          ..............................  ..............................
      I   Asbestosis/Pleural Disease A..  Medical Monitoring
     II   Mixed Disease With Impairment.  $25,000
    III   Asbestosis/Pleural Disease B..  $100,000
     IV   Severe Asbestosis.............  $400,000
      V   Disabling Asbestosis..........  $850,000
   VIII   Lung Cancer With Asbestosis...  smokers, $600,000;
                                          ex-smokers, $975,000;
                                          non-smokers, $1,100,000
     IX   Mesothelioma..................  $1,100,000
 

       (2) Definitions.--In this section--
       (A) the term ``nonsmoker'' means a claimant who--
       (i) never smoked; or
       (ii) has smoked fewer than 100 cigarettes or the equivalent 
     of other tobacco products during the claimant's lifetime; 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) Level ix adjustments.--
       (A) In general.--The Administrator may increase awards for 
     Level IX claimants who have dependent children so long as the 
     increase under this paragraph is cost neutral. Such increased 
     awards shall be paid for by decreasing awards for claimants 
     other than Level IX, so long as no award levels are decreased 
     more than 10 percent.
       (B) Implementation.--Before making adjustments under this 
     paragraph, the Administrator shall publish in the Federal 
     Register notice of, and a plan for, making such adjustments.
       (4) Special adjustment for fela cases.--
       (A) In general.--A claimant who would be eligible to bring 
     a claim under the Act of April 22, 1908 (45 U.S.C. 51 et 
     seq.), commonly known as the Employers' Liability Act, but 
     for section 403 of this Act, shall be eligible for a special 
     adjustment under this paragraph.
       (B) Regulations.--
       (i) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Administrator shall promulgate 
     regulations relating to special adjustments under this 
     paragraph.
       (ii) Joint proposal.--Not later than 45 days after the date 
     of enactment of this Act, representatives of railroad 
     management and representatives of railroad labor shall submit 
     to the Administrator a joint proposal for regulations 
     describing the eligibility for and amount of special 
     adjustments under this paragraph. If a joint proposal is 
     submitted, the Administrator shall promulgate regulations 
     that reflect the joint proposal.
       (iii) Absence of joint proposal.--If railroad management 
     and railroad labor are unable to agree on a joint proposal 
     within 45 days after the date of enactment of this Act, the 
     benefits prescribed in subparagraph (E) shall be the benefits 
     available to claimants, and the Administrator shall 
     promulgate regulations containing such benefits.
       (iv) Review.--The parties participating in the arbitration 
     may file in the United States District Court for the District 
     of Columbia a petition for review of the Administrator's 
     order. The court shall have jurisdiction to affirm the order 
     of the Administrator, or to set it aside, in whole or in 
     part, or it may remand the proceedings to the Administrator 
     for such further action as it may direct. On such review, the 
     findings and order of the Administrator shall be conclusive 
     on the parties, except that the order of the Administrator 
     may be set aside, in whole or in parts or remanded to the 
     Administrator, for failure of the Administrator to comply 
     with the requirements of this section, for failure of the 
     order to conform, or confine itself, to matters within the 
     scope of the Administrator's jurisdiction, or for fraud or 
     corruption.
       (C) Eligibility.--An individual eligible to file a claim 
     under the Act of April 22, 1908 (45 U.S.C. 51 et seq.), 
     commonly known as the Employers' Liability Act, shall be 
     eligible for a special adjustment under this paragraph if 
     such individual meets the criteria set forth in subparagraph 
     (F).
       (D) Amount.--
       (i) In general.--The amount of the special adjustment shall 
     be based on the type and severity of asbestos disease, and 
     shall be 110 percent of the average amount an injured 
     individual with a disease caused by asbestos, as described in 
     section 121(d) of this Act, would have received, during the 
     5-year period before the enactment of this Act, adjusted for 
     inflation. This adjustment shall be in addition to any other 
     award for which the claimant is eligible under this Act. The 
     amount of the special adjustment shall be reduced by an 
     amount reasonably calculated to take into account all 
     expenses of litigation normally borne by plaintiffs, 
     including attorney's fees.
       (ii) Limitation.--The amount under clause (i) may not 
     exceed the amount the claimant is eligible to receive before 
     applying the special adjustment under that clause.
       (E) Arbitrated benefits.--If railroad management and 
     railroad labor are unable to agree on a joint proposal within 
     45 days after the date of enactment of this Act, the 
     Administrator shall appoint an arbitrator to determine the 
     benefits under subparagraph (D). The Administrator shall 
     appoint an arbitrator who shall be acceptable to both 
     railroad management and railroad labor. Railroad management 
     and railroad labor shall each designate their representatives 
     to participate in the arbitration. The arbitrator shall 
     submit the benefits levels to the Administrator not later 
     than 30 days after appointment and such benefits levels shall 
     be based on information provided by rail labor and rail 
     management. The information submitted to the arbitrator by 
     railroad management and railroad labor shall be considered 
     confidential and shall be disclosed to the other party upon 
     execution of an appropriate confidentiality agreement. Unless 
     the submitting party provides written consent, neither the 
     arbitrator nor either party to the arbitration shall divulge 
     to any third party any information or data, in any form, 
     submitted to the arbitrator under this section. Nor shall 
     either party use such information or data for any purpose 
     other than participation in the arbitration proceeding, and 
     each party shall return to the other any information it has 
     received from the other party as soon the arbitration is 
     concluded. Information submitted to the arbitrator may not be 
     admitted into evidence, nor discovered, in any civil 
     litigation in Federal or State court. The nature of the 
     information submitted to the arbitrator shall be within the 
     sole discretion of the submitting party, and the arbitrator 
     may not require a party to submit any particular information, 
     including information subject to a prior confidentiality 
     agreement.
       (F) Demonstration of eligibility.--
       (i) In general.--A claimant under this paragraph shall be 
     required to demonstrate--

       (I) employment of the claimant in the railroad industry;
       (II) exposure of the claimant to asbestos as part of that 
     employment; and
       (III) the nature and severity of the asbestos-related 
     injury.

       (ii) Medical criteria.--In order to be eligible for a 
     special adjustment a claimant shall meet the criteria set 
     forth in section 121 that

[[Page S1242]]

     would qualify a claimant for a payment under Level II or 
     greater.
       (5) 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.
       (6) Cost-of-living adjustment.--
       (A) In general.--Beginning January 1, 2007, 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 2005.
       (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) Lump-sum payments.--
       (A) In general.--The Administrator shall develop guidelines 
     to provide for 1 lump-sum payment 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.
       (B) Timing of payments.--Lump-sum payments shall be made 
     within the shorter of--
       (i) not later than 30 days after the date the claim is 
     approved by the Administrator; or
       (ii) not later than 6 months after the date the claim is 
     filed.
       (C) Timing of payments to be adjusted with respect to 
     solvency of the fund.--If the Administrator determines that 
     solvency of the Fund would be severely harmed by the timing 
     of the payments required under subparagraph (B), the time for 
     such payments may be extended to the shorter of--
       (i) not later than 6 months after the date the claim is 
     approved by the Administrator; or
       (ii) not later than 11 months after the date the claim is 
     filed.
       (5) Expedited payments.--
       (A) In general.--The Administrator shall develop guidelines 
     to provide for expedited payments to asbestos claimants in 
     cases of terminal health claims as described under section 
     106(c)(2)(B) and (C).
       (B) Timing of payments.--Total payments shall be made 
     within the shorter of--
       (i) not later than 6 months after the date the claim is 
     approved by the Administrator; or
       (ii) not later than 1 year after the date the claim is 
     filed.
       (C) Timing of payments to be adjusted with respect to 
     solvency of the fund.--If the Administrator determines that 
     solvency of the Fund would be severely harmed by the timing 
     of the payments required under subparagraph (B), the time for 
     such payments may be extended to the shorter of--
       (i) not later than 1 year after the date the claim is 
     approved by the Administrator; or
       (ii) not later than 2 years after the date the claim is 
     filed.
       (D) Prioritization of claims.--The Administrator shall, in 
     final regulations promulgated under section 101(c), designate 
     categories of claims to be handled on an expedited basis. The 
     Administrator shall prioritize the processing and payment of 
     health claims involving claimants with the most serious 
     health risks. The Administrator shall also prioritize claims 
     from claimants who face extreme financial hardship.
       (6) Annuity.--An asbestos claimant may elect to receive any 
     payments to which that claimant is 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.
       (f) Effect of Payment.--The payment of an asbestos claim 
     under this section shall be in full satisfaction of such 
     claim and shall be deemed to operate as a release to such 
     claim. No claimant with an asbestos claim that will be paid 
     under this section may proceed in the tort system with 
     respect to such claim.

     SEC. 134. SETOFFS FOR COLLATERAL SOURCE COMPENSATION AND 
                   PRIOR AWARDS.

       (a) In General.--The amount of an award otherwise available 
     to an asbestos claimant under this title shall be reduced by 
     the amount of any collateral source compensation and by any 
     amounts paid or to be paid to the claimant for a prior award 
     under this Act.
       (b) Exclusions.--
       (1) Collateral source compensation.--In no case shall 
     special adjustments made under section 131(b)(3), 
     occupational or total disability benefits under the Railroad 
     Retirement Act (45 U.S.C. 201 et seq.), sickness benefits 
     under the Railroad Unemployment Insurance Act (45 U.S.C 351 
     et seq.), and veterans' benefits programs be deemed as 
     collateral source compensation for purposes of this section.
       (2) Prior award payments.--Any amounts paid or to be paid 
     for a prior claim for a nonmalignant disease (Levels I 
     through V) filed against the Fund shall not be deducted as a 
     setoff against amounts payable for the second injury claims 
     for a malignant disease (Levels VI through IX), unless the 
     malignancy was diagnosed before the date on which the 
     nonmalignancy claim was compensated.

     SEC. 135. CERTAIN CLAIMS NOT AFFECTED BY PAYMENT OF AWARDS.

       (a) In General.--The payment of an award under section 106 
     or 133 shall not be considered a form of compensation or 
     reimbursement for a loss for purposes of imposing liability 
     on any asbestos claimant receiving such payment to repay 
     any--
       (1) life or health insurance carrier for insurance 
     payments; or
       (2) person or governmental entity on account of health care 
     or disability payments.
       (b) No Effect on Claims.--
       (1) In general.--The payment of an award to an asbestos 
     claimant under section 106 or 133 shall not affect any claim 
     of an asbestos claimant against--
       (A) a life or health insurance carrier with respect to 
     insurance; or
       (B) against any person or governmental entity with respect 
     to healthcare or disability.
       (2) Rule of construction.--Nothing in this subsection shall 
     be construed to authorize the pursuit of a claim that is 
     preempted under section 403.

            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) Indemnifiable cost.--The term ``indemnifiable cost'' 
     means a cost, expense,

[[Page S1243]]

     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.
       (3) 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.
       (4) 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.
       (5) 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(h);
       (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 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.
       (6) 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).
       (7) Asbestos premises claim.--The term ``asbestos premises 
     claim''--
       (A) means an asbestos claim against a current or former 
     premises owner or landowner, or person controlling or 
     possessing premises or land, alleging injury or death caused 
     by exposure to asbestos on such premises or land or by 
     exposure to asbestos carried off such premises or land on the 
     clothing or belongings of another person; and
       (B) includes any such asbestos claim against a current or 
     former employer alleging injury or death caused by exposure 
     to asbestos on premises or land owned, controlled or 
     possessed by the employer, if such claim is not a claim for 
     benefits under a workers' compensation law or veterans' 
     benefits program.
       (8) Asbestos premises defendant participant.--The term 
     ``asbestos premises defendant participant'' means any 
     defendant participant for which 95 percent or more of its 
     prior asbestos expenditures relate to asbestos premises 
     claims against that defendant participant.

     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.--The total 
     payments required of all defendant participants over the life 
     of the Fund shall not exceed a sum equal to $90,000,000,000 
     less any bankruptcy trust credits under section 222(d). 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 under section 524(g) of title 11, United States 
     Code. 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.--
       (A) In general.--In this subsection, the term ``bankrupt 
     business entity'' means a person that is not a natural person 
     that--
       (i) filed a petition for relief under chapter 11, of title 
     11, United States Code, before January 1, 2003;
       (ii) has not substantially consummated, as such term is 
     defined under section 1101(2) of title 11, United States 
     Code, a plan of reorganization as of the date of enactment of 
     this Act; and
       (iii) 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 after the date of 
     enactment of this Act, that asbestos liability was not the 
     sole or precipitating cause of the entity's chapter 11 
     filing.
       (B) Motion and related matters.--A motion under 
     subparagraph (A)(iii) 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.
     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 30 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 shall be an expedited 
     appeal and limited to whether the decision was against the 
     weight of the evidence. Any appeal of a determination shall 
     be an expedited review to the United States Circuit Court of 
     Appeals for the circuit in which the bankruptcy is filed.
       (2) Proceeding with reorganization plan.--A bankrupt 
     business entity may proceed with the filing, solicitation, 
     confirmation, and consummation 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 the 
     bankruptcy court makes a favorable determination under 
     paragraph (1)(B), unless the bankruptcy court's determination 
     is overruled on appeal and all appeals are final. Such a 
     bankrupt business entity may continue to so proceed, 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 such confirmation is required to avoid 
     the liquidation or the need for further financial 
     reorganization of that entity; 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 determination required under paragraph (2), or if an 
     order confirming the plan is not entered 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, 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 under 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 under section 
     524(g) of title 11, United States Code, may be counted as a 
     contribution to the Fund.
       (d) Tiers II Through VI.--Except as provided in section 204 
     and subsection (b) of this section, 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.
       (6) Asbestos premises defendant participants.--
       (A) In general.--Asbestos premises defendant participants 
     that would be included in Tier II, III, IV or V according to 
     their

[[Page S1244]]

     prior asbestos expenditures shall, after 5 years of the Fund 
     being operational, instead be assigned to the immediately 
     lower tier, such that--
       (i) an asbestos premises defendant participant that would 
     be assigned to Tier II shall instead be assigned to Tier III;
       (ii) an asbestos premises defendant participant that would 
     be assigned to Tier III shall instead be assigned to Tier IV;
       (iii) an asbestos premises defendant participant that would 
     be assigned to Tier IV shall instead be assigned to Tier V; 
     and
       (iv) an asbestos premises defendant participant that would 
     be assigned to Tier V shall instead be assigned to Tier VI.
       (B) Return to original tier.--The Administrator may return 
     asbestos premises defendant participants to their original 
     tier, on a yearly basis, if the Administrator determines that 
     the additional revenues that would be collected are needed to 
     preserve the solvency of the Fund.
       (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(j)(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.--Notwithstanding section 
     403(c)(3), any plan of reorganization, agreement, 
     understanding, or undertaking by any debtor (including any 
     pre-petition agreement, understanding, or undertaking that 
     requires future performance) or any third party under 
     paragraph (1), and any agreement, understanding, or 
     undertaking entered into in anticipation, contemplation, or 
     furtherance of a plan of reorganization, 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 such agreement, understanding, or undertaking.

     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.--
       (i) In general.--Each debtor included in Subtier 1 shall 
     pay on an annual basis 1.67024 percent of the debtor's 2002 
     revenues.
       (ii) Exception to payment percentage.--Notwithstanding 
     clause (i), a debtor in Subtier 1 shall pay, on an annual 
     basis, $500,000 if--

       (I) such debtor, including its direct or indirect majority-
     owned subsidiaries, has less than $10,000,000 in prior 
     asbestos expenditures;
       (II) at least 95 percent of such debtors revenues derive 
     from the provision of engineering and construction services; 
     and
       (III) such debtor, including its direct or indirect 
     majority-owned subsidiaries, never manufactured, sold, or 
     distributed asbestos-containing products in the stream of 
     commerce.

       (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.
       (iii) Right of contribution.--

       (I) In general.--Notwithstanding any other provision of 
     this Act, if a direct or indirect majority-owned foreign 
     subsidiary of a debtor participant (with such relationship to 
     the debtor participant as determined on the date of enactment 
     of this Act) is or becomes subject to any foreign insolvency 
     proceedings, and such foreign direct or indirect-majority 
     owned subsidiary is liquidated in connection with such 
     foreign insolvency proceedings (or if the debtor 
     participant's interest in such foreign subsidiary is 
     otherwise canceled or terminated in connection with such 
     foreign insolvency proceedings), the debtor participant shall 
     have a claim against such foreign subsidiary or the estate of 
     such foreign subsidiary in an amount equal to the greater 
     of--

       (aa) the estimated amount of all current and future 
     asbestos liabilities against such foreign subsidiary; or
       (bb) the foreign subsidiary's allocable share of the debtor 
     participant's funding obligations to the Fund as determined 
     by such foreign subsidiary's allocable share of the debtor 
     participant's 2002 gross revenue.

       (II) Determination of claim amount.--The claim amount under 
     subclause (I) (aa) or (bb) shall be determined by a court of 
     competent jurisdiction in the United States.
       (III) Effect on payment obligation.--The right to, or 
     recovery under, any such claim shall not reduce, limit, 
     delay, or otherwise affect the debtor participant's payment 
     obligations under this Act.

       (iv) Maximum annual payment obligation.--Subject to any 
     payments under paragraphs (3), (4), and (5) of this 
     subsection, the annual payment obligation by a debtor under 
     subparagraph (B) of this paragraph shall not exceed 
     $80,000,000.
       (3) Subtier 2.--
       (A) In general.--Notwithstanding paragraph (2), all persons 
     that are debtors that have no material continuing business 
     operations, other than class action trusts under paragraph 
     (6), 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 unencumbered assets to the 
     Fund.

[[Page S1245]]

       (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.
       (5) Calculation of unencumbered assets.--Unencumbered 
     assets shall be calculated as the Subtier 3 person's total 
     assets, excluding insurance-related assets, jointly held, in 
     trust or otherwise, with a defendant participant, less--
       (A) all allowable administrative expenses;
       (B) allowable priority claims under section 507 of title 
     11, United States Code; and
       (C) allowable secured claims.
       (6) 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 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 60 days 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: $27,500,000.
       (B) Subtier 2: $24,750,000.
       (C) Subtier 3: $22,000,000.
       (D) Subtier 4: $19,250,000.
       (E) Subtier 5: $16,500,000.
       (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: $16,500,000.
       (B) Subtier 2: $13,750,000.
       (C) Subtier 3: $11,000,000.
       (D) Subtier 4: $8,250,000.
       (E) Subtier 5: $5,500,000.
       (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: $3,850,000.
       (B) Subtier 2: $2,475,000.
       (C) Subtier 3: $1,650,000.
       (D) Subtier 4: $550,000.
       (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.
       (3) Other payment for certain persons and affiliated 
     groups.--
       (A) In general.--Notwithstanding any other provision of 
     this subsection, and if an adjustment authorized by this 
     subsection does not impair the overall solvency of the Fund, 
     any person or affiliated group within Tier VI whose required 
     subtier payment in any given year would exceed such person's 
     or group's average annual expenditure on settlements, and 
     judgments of asbestos disease-related claims over the 8 years 
     before the date of enactment of this Act shall make the 
     payment required of the immediately lower subtier or, if the 
     person's or group's average annual expenditures on 
     settlements and judgments over the 8 years before the date of 
     enactment of this Act is less than $100,000, shall not be 
     required to make a payment under this Act.
       (B) No further adjustment.--Any person or affiliated group 
     that receives an adjustment under this paragraph shall not be 
     eligible to receive any further adjustment under section 
     204(e).
       (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 Act of April 22, 1908 (45 U.S.C. 51 et 
     seq.), commonly known as the Employers' Liability Act, 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, and such settlement, judgment, 
     defense, or indemnity costs constitute 75 percent or more of 
     the total prior asbestos expenditures by the person or 
     affiliated group.
       (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 $6,000,000,000 or more is included in 
     Subtier 1 and shall make annual payments of $11,000,000 to 
     the Fund.
       (4) Subtier 2.--Each person or affiliated group in Tier VII 
     with revenues of less than $6,000,000,000, but not less than 
     $4,000,000,000 is included in Subtier 2 and shall make annual 
     payments of $5,500,000 to the Fund.
       (5) Subtier 3.--Each person or affiliated group in Tier VII 
     with revenues of less than $4,000,000,000, but not less than 
     $500,000,000 is included in Subtier 3 and shall make annual 
     payments of $550,000 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 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.--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 30 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 subsections (e) and (n), 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) Limitation.--
       (1) In General.--Under expedited procedures established by 
     the Administrator, any defendant participant may apply for a 
     limitation on its annual payment obligation to

[[Page S1246]]

     the Fund by showing that it qualifies under subparagraph (3), 
     and the Administrator shall promptly grant such application 
     if the standards in subparagraph (3) are satisfied.
       (2) Stay of Payment.--A defendant participant who applies 
     for a limitation on its annual payment obligation to the Fund 
     under subparagraph (1) shall have the payment required under 
     subsection (i)(1)(A)(iv) stayed until the Administrator has 
     made a determination with respect to the application of such 
     defendant participant.
       (3) Application for Limitation.--A defendant participant 
     may apply under subparagraph (A) for a limit on its annual 
     payment obligation to the Fund if:
       (A) it is included in Tiers II, III, IV, V, or VI under 
     section 202; and
       (B) its prior asbestos expenditures are less than $200 
     million and its revenues as defined in this section are less 
     than $10 Billion.
       (4) Limitation.--Such qualifying defendant participant may 
     apply for the limit set forth in either clause (A), (B) or 
     (C), provided that it may apply only under one such clause 
     and may not change its application once the application has 
     been approved by the Administrator. A defendant participant 
     qualifying under this subparagraph may apply for a limit on 
     its annual payment obligation to the Fund to an amount equal 
     to--
       (A) 125 percent of the arithmetical average for fiscal 
     years 1998 through 2002 of such defendant participant's 
     annual prior asbestos expenditures; or
       (B) 150 percent of the arithmetical average for fiscal 
     years 1998 through 2002 of such defendant participant's 
     annual prior asbestos expenditures, excluding (I) the amount 
     of any payments by insurance carriers for the benefit of such 
     defendant participant or on behalf of such defendant 
     participant, and (II) any reimbursements of the amounts 
     actually paid by such defendant participant with respect to 
     prior asbestos expenditures for fiscal years 1998 through 
     2002, regardless of when such reimbursements were actually 
     paid; or
       (C) 1.67024 percent of the revenues for the most recent 
     fiscal year ending on or prior to December 31, 2002, of the 
     affiliated group to which such defendant participant belongs.
       (5) Judicial review. A defendant participant who is 
     aggrieved by the denial by the Administrator or its 
     application under this paragraph is entitled to judicial 
     review under section 303, and during the pendency of such 
     review, section 223(a) shall not apply to that defendant 
     participant. Without regard to section 305(a), the reviewing 
     court may, in its discretion, provide such interlocutory 
     relief to the defendant participant as may be just.
       (6) Applicability of the guarantee surcharge.--A defendant 
     participant whose application for a limitation on its annual 
     payment obligation to the Fund under subparagraph (A) is 
     approved by the Administrator, shall not be exempt from the 
     guaranteed payment surcharge established under subsection (1) 
     unless otherwise provided in this Act.
       (7) Minimum payment.--Notwithstanding the limitations 
     provided in this subsection, a defendant participant that is 
     granted a limitation by the Administrator shall pay no less 
     than 5 percent of the amount the participant is scheduled to 
     pay under section 202.
       (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, 
     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.--Any defendant participant in any tier may 
     apply for an adjustment under this paragraph at any time 
     during the period in which a payment obligation to the Funds 
     remains outstanding any may qualify for such an adjustment by 
     demonstrating to the satisfaction of the Administrator that 
     the amount of its payment obligation would materially and 
     adversely affect the defendant participant's ability to 
     continue its business and to pay or satisfy its debts 
     generally as and when they come due. Such an adjustment shall 
     be in an amount that in the judgment of the Administrator is 
     reasonably necessary to prevent such material and adverse 
     effect on the defendant participant's ability to continue its 
     business and to pay or satisfy its debts generally as and 
     when they come due.
       (B) Factors to consider.--In determining whether to make an 
     adjustment under subparagraph (A) and the amount thereof, the 
     Administrator shall consider--
       (1) the financial situation of the defendant participant 
     and its affiliated group as shown in historical audited 
     financial statements, including income statement, balance 
     sheet, and statement of cash flow, for the three fiscal years 
     ending immediately prior to the application and projected 
     financial statements for the three fiscal years following the 
     application;
       (2) an analysis of capital spending and fixed charge 
     coverage on a historical basis for the three fiscal years 
     immediately proceeding a defendant participant's application 
     and for the three fiscal years following the application;
       (3) any payments or transfers of property made, or 
     obligations incurred, within the preceding 6 years by the 
     defendant participant to or for the benefit of any insider as 
     defined under section 101(31) of title 11 of the United 
     States Code or any affiliate as defined under section 101(2) 
     of title 11 of the United States Code;
       (4) any prior extraordinary transactions within the 
     preceding 6 years involving the defendant participant, 
     including without limitation payments or extraordinary 
     salaries, bonuses, or dividends;
       (5) the defendant participant's ability to satisfy its 
     payment obligations to the Fund by borrowing or financing 
     with equity capital, or through issuance of securities of the 
     defendant participant or its affiliated group to the Fund;
       (6) the defendant participant's ability to delay 
     discretionary capital spending; and
       (7) any other factor that the Administrator considers 
     relevant.
       (C) Term.--A financial hardship adjustment under this 
     paragraph shall have a term of 5 years unless the 
     Administrator determines at the time the adjustment is made 
     that a shorter or longer period is appropriate in the light 
     of the financial condition of the defendant participant and 
     its affiliated group and other relevant factors, provided 
     that a financial hardship adjustment under this paragraph 
     shall terminate automatically in the event that the defendant 
     participant holding the adjustment files a petition under 
     title 11, United States Code.
       (D) Renewal.--A defendant participant may renew a hardship 
     adjustment upon expiration by demonstrating that it remains 
     justified. Such renewed hardship adjustments shall have a 
     term of 5 years unless the Administrator determines at the 
     time of the renewed adjustment that a shorter or longer 
     period is appropriate in the light of the financial condition 
     of the defendant participant and its affiliated group and 
     other relevant factors, provided that a renewed financial 
     hardship adjustment under this paragraph shall terminate 
     automatically in the event that the defendant participant 
     holding the adjustment files a petition under title 11, 
     United States Code.
       (E) Procedure.--
       (1) The Administrator shall prescribe the information to be 
     submitted in applications for adjustments under this 
     paragraph.
       (2) All audited financial information required under this 
     paragraph shall be as reported by the defendant participant 
     in its 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.). Any defendant participant that 
     does not file reports with the Securities and Exchange 
     Commission or which does not have audited financial 
     statements shall submit financial statements prepared 
     pursuant to generally accepted accounting principles. The 
     chairman, chief executive officer, and chief financial 
     officer of the defendant participant shall certify under 
     penalty of law the completeness and accuracy of the financial 
     statements provided under this sub-paragraph.
       (3) The chairman, chief executive officer, and chief 
     financial officer of the defendant participant shall certify 
     that any projected information and
       (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;
       (II) when measured against the likely cost of past and 
     potential future claims in the absence of this Act;
       (III) when compared to the median payment rate for all 
     defendant participants in the same tier; or
       (IV) 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;

       (ii) shall be granted 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, and 
     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;

[[Page S1247]]

       (iii) shall be granted a two-tier adjustment reducing the 
     defendant participant's payment obligation based on inequity 
     by demonstrating that not less than 95 percent of such 
     participant's prior asbestos expenditures arose from asbestos 
     claims based on successor liability arising from a merger to 
     which the participant or its predecessor was a party that 
     occurred at least 30 years before the date of enactment of 
     this Act, and that such prior asbestos expenditures exceed 
     the inflation-adjusted value of the assets of the company 
     from which such liability was derived in such merger, and 
     upon such demonstration the Administrator shall grant such 
     adjustment for the life of the Fund and amounts paid by such 
     defendant participant prior to such adjustment in excess of 
     its adjusted payment obligation under this clause shall be 
     credited against next succeeding required payment 
     obligations; and
       (iv) may, subject to the discretion of the Administrator, 
     be exempt from any payment obligation if such defendant 
     participant establishes with the Administrator that--

       (I) such participant has satisfied all past claims; and
       (II) there is no reasonable likelihood in the absence of 
     this Act of any future claims with costs for which the 
     defendant participant might be responsible.

       (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 inequity adjustment account established under 
     subsection (k), 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), 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 be limited.
       (6) Rulemaking and Advisory panels.--
       (A) Appointment.--The Administrator may 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. The 
     Administrator may adopt rules consistent with this Act to 
     make the determination of hardship and inequity adjustments 
     more efficient and predictable.
       (f) 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.
       (g) 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 (j), 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 (j) 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.
       (h) 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.
       (4) Treatment of certain expenditures.--Notwithstanding any 
     other provision of this Act, where--
       (A) an indemnitor entered into a stock purchase agreement 
     in 1988 that involved the sale of the stock of businesses 
     that produced friction and other products; and
       (B) the stock purchase agreement provided that the 
     indemnitor indemnified the indemnitee and its affiliates for 
     losses arising from various matters, including asbestos 
     claims--
       (i) asserted before the date of the agreement; and
       (ii) filed after the date of the agreement and prior to the 
     10-year anniversary of the stock sale,
     then the prior asbestos expenditures arising from the 
     asbestos claims described in clauses (i) and (ii) shall not 
     be for the account of either the indemnitor or indemnitee.
       (i) Minimum Annual Payments.--
       (1) In general.--The aggregate annual payments of defendant 
     participants to the Fund shall be at least $3,000,000,000 for 
     each calendar year in the first 30 years of the Fund, or 
     until such shorter time as the condition set forth in 
     subsection (a)(2) is attained.
       (2) Guaranteed payment account.--To the extent payments in 
     accordance with sections 202 and 203 (as modified by 
     subsections (b), (e), (g), (h), and (n) of this section) fail 
     in any year to raise at least $3,000,000,000, after 
     applicable reductions or adjustments have been taken 
     according to subsections (e) and (n), the balance needed to 
     meet this required minimum aggregate annual payment shall be 
     obtained from the defendant guaranteed payment account 
     established under subsection (k).
       (j) Procedures for Making Payments.--
       (1) Initial year: tiers ii-vi.--
       (A) In general.--Not later than 90 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 (g);
       (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);
       (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; and
       (v) a signature page personally verifying the truth of the 
     statements and estimates described under this subparagraph, 
     as required under section 404 of the Sarbanes-Oxley Act of 
     2002 (15 U.S.C. 7201 et seq.).
       (B) Relief.--
       (i) In general.--The Administrator shall establish 
     procedures to grant a defendant

[[Page S1248]]

     participant relief from its initial payment obligation if the 
     participant shows that--

       (I) the participant is likely to qualify for a financial 
     hardship adjustment; and
       (II) failure to provide interim relief would cause severe 
     irreparable harm.

       (ii) Judicial relief.--The Administrator's refusal to grant 
     relief under clause (i) is subject to immediate judicial 
     review under section 303.
       (2) Initial year: tier i.--Not later than 60 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--
       (i) a statement of the debtor's 2002 revenues, determined 
     in accordance with section 203(a)(2);
       (ii) for those debtors subject to the payment requirement 
     of section 203(b)(2)(B)(ii), a statement whether its prior 
     asbestos expenditures do not exceed $10,000,000, and a 
     description of its business operations sufficient to show the 
     requirements of that section are met; and
       (iii) 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);
       (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; and
       (G) a signature page personally verifying the truth of the 
     statements and estimates described under this paragraph, as 
     required under section 404 of the Sarbanes-Oxley Act of 2002 
     (15 U.S.C. 7201 et seq.).
       (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--
       (i) 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; and
       (ii) that includes a list of all defendant participants 
     notified by the Administrator under subparagraph (A), and 
     provides for 30 days for the submission by the public of 
     comments or information regarding the completeness and 
     accuracy of the list of identified defendant participants.
       (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.--
       (i) Notice to individual.--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.
       (ii) Public notice.--Not later than 7 days after sending 
     the notification of initial determination to defendant 
     participants, the Administrator shall publish in the Federal 
     Register a notice listing the defendant participants that 
     have been sent such notification, and the initial 
     determination identifying the tier and subtier assignment and 
     annual payment obligation of each identified 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 of the 
     Administrator's determination under subsection (e) of a 
     financial hardship or inequity adjustment, and of the 
     Administrator's determination under subsection (n) of a 
     distributor's 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. The Administrator shall 
     publish a notice in the Federal Register of any change in a 
     defendant participant's tier or subtier assignment or payment 
     obligation as a result of a rehearing.
       (k) Defendant 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 required under subsection (i), 
     excess monies up to a maximum of $300,000,000 in any such 
     year shall be placed in a defendant inequity adjustment 
     account established within the Fund by the Administrator.
       (2) Use of account monies.--Monies from the defendant 
     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 demonstrated inequity under subsection (d) 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) is met, 
     for any purpose that the Fund may serve under this Act.
       (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 (e), remaining funds in 
     the account shall be carried forward for use by the 
     Administrator for adjustments in subsequent years.
       (l) Defendant Guaranteed Payment Account.--
       (1) In general.--Subject to subsections (i) and (k), if 
     there are excess monies paid by defendant participants in any 
     given year, including any bankruptcy trust credits that may 
     be due under section 222(d), such monies--

[[Page S1249]]

       (A) at the discretion of the Administrator, may be used to 
     provide additional adjustments under subsection (e), 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 required 
     under subsection (i), after applicable reductions or 
     adjustments have been taken according to subsections (e) and 
     (m) is reached each year; and
       (B) if the condition set forth in subsection (a)(2) is met, 
     for any purpose that the Fund may serve under this Act.
       (n) Adjustments for Distributors.--
       (1) Definition.--In this subsection, the term 
     ``distributor'' means a person--
       (A) whose prior asbestos expenditures arise exclusively 
     from the sale of products manufactured by others;
       (B) who did not prior to December 31, 2002, sell raw 
     asbestos or a product containing more than 95 percent 
     asbestos by weight;
       (C) whose prior asbestos expenditures did not arise out 
     of--
       (i) the manufacture, installation, repair, reconditioning, 
     maintaining, servicing, constructing, or remanufacturing of 
     any product;
       (ii) the control of the design, specification, or 
     manufacture of any product; or
       (iii) the sale or resale of any product under, as part of, 
     or under the auspices of, its own brand, trademark, or 
     service mark; and
       (D) who is not subject to assignment under section 202 to 
     Tier I, II, III or VII.
       (2) Tier reassignment for distributors.--
       (A) In general.--Notwithstanding section 202, the 
     Administrator shall assign a distributor to a Tier for 
     purposes of this title under the procedures set forth in this 
     paragraph.
       (B) Designation.--After a final determination by the 
     Administrator under section 204(j), any person who is, or any 
     affiliated group in which every member is, a distributor may 
     apply to the Administrator for adjustment of its Tier 
     assignment under this subsection. Such application shall be 
     prepared in accordance with such procedures as the 
     Administrator shall promulgate by rule. Once the 
     Administrator designates a person or affiliated group as a 
     distributor under this subsection, such designation and the 
     adjustment of tier assignment under this subsection are 
     final.
       (C) Payments.--Any person or affiliated group that seeks 
     adjustment of its Tier assignment under this subsection shall 
     pay all amounts required of it under this title until a final 
     determination by the Administrator is made under this 
     subsection. Such payments may not be stayed pending any 
     appeal. The Administrator shall grant any person or 
     affiliated group a refund or credit of any payments made if 
     such adjustment results in a lower payment obligation.
       (D) Adjustment.--Subject to paragraph (3), any person or 
     affiliated group that the Administrator has designated as a 
     distributor under this subsection shall be given an 
     adjustment of Tier assignment as follows:
       (i) A distributor that but for this subsection would be 
     assigned to Tier IV shall be deemed assigned to Tier V.
       (ii) A distributor that but for this subsection would be 
     assigned to Tier V shall be deemed assigned to Tier VI.
       (iii) A distributor that but for this subsection would be 
     assigned to Tier VI shall be deemed assigned to no Tier and 
     shall have no obligation to make any payment to the Fund 
     under this Act.
       (E) Exclusive to inequity adjustment.--Any person or 
     affiliated group designated by the Administrator as a 
     distributor under this subsection shall not be eligible for 
     an inequity adjustment under subsection 204(e).
       (3) Limitation on adjustments.--The aggregate total of 
     distributor adjustments under this subsection in effect in 
     any given year shall not exceed $50,000,000. If the aggregate 
     total of distributors adjustments under this subsection would 
     otherwise exceed $50,000,000, then each distributor's 
     adjustment shall be reduced pro rata until the aggregate of 
     all adjustments equals $50,000,000.
       (4) Rehearing.--A defendant participant has a right to 
     obtain a rehearing of the Administrator's determination on an 
     adjustment under this subsection under the procedures 
     prescribed in subsection (j)(10).

     SEC. 205. STEPDOWNS AND FUNDING HOLIDAYS.

       (a) Stepdowns.--
       (1) In general.--Subject to paragraph (2), the minimum 
     aggregate annual funding obligation under section 204(i) 
     shall be reduced by 10 percent of the initial minimum 
     aggregate funding obligation at the end of the tenth, 
     fifteenth, twentieth, and twenty-fifth years after the date 
     of enactment of this Act. Except as otherwise provided in 
     this paragraph, the reductions under this paragraph shall be 
     applied on an equal pro rata basis to the funding obligations 
     of all defendant participants.
       The reductions under this subsection shall not apply to 
     defendant participants in Tier I, subtiers 2 and 3, and class 
     action trusts. For defendant participants whose payment 
     obligation has been limited under section 204(c) or who have 
     received a financial hardship adjustment under section 
     204(e)(2), aggregate potential reductions under this 
     subsection shall be calculated on the basis of the defendant 
     participant's tier and subtier without regard to such 
     limitation or adjustment. If the aggregate potential 
     reduction under this subsection exceeds the reduction in the 
     defendant participant's payment obligation due to the 
     limitation under section 204(c) and the financial hardship 
     adjustment under section 204(e)(2), then the defendant 
     participant's payment obligation shall be further reduced by 
     the difference between the potential reduction provided under 
     this subsection and the reductions that the defendant 
     participant has already received due to the application of 
     the limitation provided in section 204(c) and the financial 
     hardship adjustment provided under section 204(e)(2). If the 
     reduction in the defendant participant's payment obligation 
     due to the limitation provided in section 204(c) and any the 
     financial hardship adjustment provided under section 
     204(e)(2) exceeds the amount of the reduction provided in 
     this subsection, then the defendant participant's payment 
     obligation shall not be further reduced under this paragraph.
       (2) Limitation.--The Administrator shall suspend, cancel, 
     reduce, or delay any reduction under paragraph (1) if at any 
     time the Administrator finds, in accordance with subsection 
     (c), that such action is necessary and appropriate to ensure 
     that the assets of the Fund and expected future payments 
     remain sufficient to satisfy the Fund's anticipated 
     obligations.
       (b) Funding Holidays.--
       (1) In general.--If the Administrator determines, at any 
     time after 10 years following the date of enactment of this 
     Act, that the assets of the Fund at the time of such 
     determination and expected future payments, taking into 
     consideration any reductions under subsection (a), are 
     sufficient to satisfy the Fund's anticipated obligations 
     without the need for all, or any portion of, that year's 
     payment otherwise required under this subtitle, the 
     Administrator shall reduce or waive all or any part of the 
     payments required from defendant participants for that year.
       (2) Annual review.--The Administrator shall undertake the 
     review required by this subsection and make the necessary 
     determination under paragraph (1) every year.
       (3) Limitations on funding holidays.--Any reduction or 
     waiver of the defendant participants' funding obligations 
     shall--
       (A) be made only to the extent the Administrator determines 
     that the Fund will still be able to satisfy all of its 
     anticipated obligations; and
       (B) be applied on an equal pro rata basis to the funding 
     obligations of all defendant participants, except as 
     otherwise provided under this paragraph. The reductions or 
     waivers provided under this subsection shall not apply to 
     defendant participants in Tier I, subtiers 2 and 3, and class 
     action trusts. For defendant participants whose payment 
     obligation has been limited under section 204(c) or who have 
     received a financial hardship adjustment under section 
     204(e)(2), aggregate potential reductions or waivers under 
     this subsection shall be calculated on the basis of the 
     defendant participant's tier and subtier without regard to 
     such limitation or adjustment. If the aggregate potential 
     reductions or waivers under this subsection exceed the 
     reduction in the defendant participant's payment obligation 
     due to the limitation under section 204(c) and the financial 
     hardship adjustment under section 204(e)(2), then the 
     defendant participant's payment obligation shall be further 
     reduced by the difference between the potential reductions or 
     waivers provided under this subsection and the reductions 
     that the defendant participant has already received due to 
     the application of the limitation provided in section 204(c) 
     and the financial hardship adjustment provided under section 
     204(e)(2). If the reduction in the defendant participant's 
     payment obligation due to the limitation provided in section 
     204(c) and any the financial hardship adjustment provided 
     under section 204(e)(2) exceeds the amount of the reductions 
     or waivers provided in this subsection, then the defendant 
     participant's payment obligation shall not be further reduced 
     under this paragraph.
       (4) New information.--If at any time the Administrator 
     determines that a reduction or waiver under this section may 
     cause the assets of the Fund and expected future payments to 
     decrease to a level at which the Fund may not be able to 
     satisfy all of its anticipated obligations, the Administrator 
     shall revoke all or any part of such reduction or waiver to 
     the extent necessary to ensure that the Fund's obligations 
     are met. Such revocations shall be applied on an equal pro 
     rata basis to the funding obligations of all defendant 
     participants, except defendant participants in Subtiers 2 and 
     3 of Tier I and class action trusts, for that year.
       (c) Certification.--
       (1) In general.--Before suspending, canceling, reducing, or 
     delaying any reduction under subsection (a) or granting or 
     revoking a reduction or waiver under subsection (b), the 
     Administrator shall certify that the requirements of this 
     section are satisfied.
       (2) Notice and comment.--Before making a final 
     certification under this subsection, the Administrator shall 
     publish a notice in the Federal Register of a proposed 
     certification and a statement of the basis therefor and 
     provide in such notice for a public comment period of 30 
     days.
       (3) Final certification.--
       (A) In general.--The Administrator shall publish a notice 
     of the final certification in

[[Page S1250]]

     the Federal Register after consideration of all comments 
     submitted under paragraph (2).
       (B) Written notice.--Not later than 30 days after 
     publishing any final certification under subparagraph (A), 
     the Administrator shall provide each defendant participant 
     with written notice of that defendant's funding obligation 
     for that year.

     SEC. 206. ACCOUNTING TREATMENT.

       Defendant participants payment obligations to the Fund 
     shall be subject to discounting under the applicable 
     accounting guidelines for generally accepted accounting 
     purposes and statutory accounting purposes for each defendant 
     participant. This section shall in no way reduce the amount 
     of monetary payments to the Fund by defendant participants as 
     required under section 202(a)(2).

                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, 2003.

     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 shall be a shareholder of any insurer 
     participant. No member of the Commission shall be a former 
     officer or director, or a former employee or former 
     shareholder of any insurer participant who was such an 
     employee, shareholder, officer, or director at any time 
     during the 2-year period ending on the date of the 
     appointment, unless that is fully disclosed before 
     consideration in the Senate of the nomination for appointment 
     to the Commission.
       (ii) Definition.--In clause (i), the term ``shareholder'' 
     shall not include a broadly based mutual fund that includes 
     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 the members of the Commission.
       (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 the first 5 years of the life 
     of the Fund and any subsequent years as provided in section 
     405(f) for any reduction in an insurer participant's annual 
     allocated amount caused by the granting of a financial 
     hardship or exceptional circumstance adjustment under this 
     section, and any amount by which aggregate insurer payments 
     fall below the level required under paragraph (3)(C) by 
     reason of the failure or refusal of any insurer participant 
     to make a required payment, or for any other reason that 
     causes such payments to fall below the level required under 
     paragraph (3)(C). The Commission shall conduct a thorough 
     study (within the time limitations under this subparagraph) 
     of the accuracy of the reserve allocation of each insurer 
     participant, and may request information from the Securities 
     and Exchange Commission or any State regulatory agency. 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.
       (D) Issuers of finite risk policies.--
       (i) In general.--The issuer of any policy of retrospective 
     reinsurance purchased by an insurer participant or its 
     affiliate after 1990 that provides for a risk or loss 
     transfer to insure for asbestos losses and other losses (both 
     known and unknown), including those policies commonly 
     referred to as ``finite risk'', ``aggregate stop loss'', 
     ``aggregate excess of loss'', or ``loss portfolio transfer'' 
     policies, shall be obligated to make payments required under 
     this Act directly to the Fund on behalf of the insurer 
     participant who is the beneficiary of such policy, subject to 
     the underlying retention and the limits of liability 
     applicable to such policy.
       (ii) Payments.--Payments to the Fund required under this 
     Act shall be treated as loss payments for asbestos bodily 
     injury (as if such payments were incurred as liabilities 
     imposed in the tort system) and shall not be subject to 
     exclusion under policies described under clause (i) as a 
     liability with respect to tax or assessment. Within 90 days 
     after the scheduled date to make an annual payment to the 
     Fund, the insurer participant shall, at its discretion, 
     direct the reinsurer issuing such policy to pay all or a 
     portion of the annual payment directly to the Fund up to the 
     full applicable limits of liability under the policy. The 
     reinsurer issuing such policy shall be obligated to make such 
     payments directly to the Fund and shall be subject to the 
     enforcement provisions under section 223. The insurer 
     participant shall remain obligated to make payment to the 
     Fund of that portion of the annual payment not directed to 
     the issuer of such reinsurance policy.
       (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, less any bankruptcy 
     trust credits under section 222(d).
       (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, insures the asbestos 
     liability, directly or indirectly, of (and that arises out of 
     the manufacture, sale, distribution or installation of 
     materials or products by, or other conduct 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 of criteria.--
       (A) Inclusion in insurer participant category.--

[[Page S1251]]

       (i) In general.--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.
       (ii) Inapplicability of section 202.--Since insurers may be 
     subject in certain jurisdictions to direct action suits, and 
     it is not the intent of this Act to impose upon an insurer, 
     due to its operation as an insurer, payment obligations to 
     the Fund in situations where the insurer is the subject of a 
     direct action, no insurer subject to mandatory payments under 
     this section shall also be liable for payments to the Fund as 
     a defendant participant under section 202.
       (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 years 1 and 2, $2,700,000,000 annually.
       (ii) For years 3 through 5, $5,075,000,000 annually.
       (iii) For years 6 through 27, $1,147,000,000 annually.
       (iv) For year 28, $166,000,000.
       (D) Certain runoff entities.--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 subparagraphs (A) and 
     (C) of subsection (b)(4); or

       (III) other exceptional circumstances.

     The Commission may determine whether to grant an adjustment 
     and the size of any such adjustment, but except as provided 
     under paragraph (1)(B), subsection (f)(3), and section 
     405(f), any such adjustment shall not affect the aggregate 
     payment obligations of insurer participants specified in 
     paragraph (2)(A) and subparagraph (C) of this paragraph.
       (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.
       (F) Funding holidays.--
       (i) In general.--If the Administrator determines, at any 
     time after 10 years following the date of enactment of this 
     Act, that the assets of the Fund at the time of such 
     determination and expected future payments are sufficient to 
     satisfy the Fund's anticipated obligations without the need 
     for all, or any portion of, that year's payment otherwise 
     required under this subtitle, the Administrator shall reduce 
     or waive all or any part of the payments required from 
     insurer participants for that year.
       (ii) Annual review.--The Administrator shall undertake the 
     review required by this subsection and make the necessary 
     determination under clause (i) every year.
       (iii) Limitations of funding holidays.--Any reduction or 
     waiver of the insurer participants' funding obligations 
     shall--

       (I) be made only to the extent the Administrator determines 
     that the Fund will still be able to satisfy all of its 
     anticipated obligations; and
       (II) be applied on an equal pro rata basis to the funding 
     obligations of all insurer participants for that year.

       (iv) New information.--If at any time the Administrator 
     determines that a reduction or waiver under this section may 
     cause the assets of the Fund and expected future payments to 
     decrease to a level at which the Fund may not be able to 
     satisfy all of its anticipated obligations, the Administrator 
     shall revoke all or any part of such reduction or waiver to 
     the extent necessary to ensure that the Fund's obligations 
     are met. Such revocations shall be applied on an equal pro 
     rata basis to the funding obligations of all insurer 
     participants for that year.
       (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--
       (i) requiring any person who may be an insurer participant 
     (as determined by criteria outlined in the notice) to submit 
     such information; and
       (ii) that includes a list of all insurer participants 
     notified by the Commission under subparagraph (A), and 
     provides for 30 days for the submission of comments or 
     information regarding the completeness and accuracy of the 
     list of identified insurer participants.
       (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.--
       (i) Notice to insurers.--Not later than 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.
       (ii) Public notice.--Not later than 7 days after sending 
     the notification of initial determination to insurer 
     participants, the Commission shall publish in the Federal 
     Register a notice listing the insurer participants that have 
     been sent such notification, and the initial determination on 
     the payment obligation of each identified participant.
       (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 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

[[Page S1252]]

     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 date of 
     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 the Commission.
       (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) Amount of interim payment.--Within 90 days after the 
     date of enactment of this Act, insurer participants shall 
     make an aggregate payment to the Fund not to exceed 50 
     percent of the aggregate funding obligation specified under 
     subsection (a)(3)(C) for year 1.
       (2) Reserve information.--Within 30 days after the date of 
     enactment of this Act, each insurer participant shall submit 
     to the Administrator a certified statement of its net held 
     reserves for asbestos liabilities as of December 31, 2004.
       (3) Allocation of interim payment.--The Administrator shall 
     allocate the interim payment among the individual insurer 
     participants on an equitable basis using the net held 
     asbestos reserve information provided by insurer participants 
     under subsection (a)(3)(B). Within 60 days after the date of 
     enactment of this Act, the Administrator shall publish in the 
     Federal Register the name of each insurer participant, and 
     the amount of the insurer participant's allocated share of 
     the interim payment. The use of net held asbestos reserves as 
     the basis to determine an interim allocation shall not be 
     binding on the Administrator in the determination of an 
     appropriate final allocation methodology under this section. 
     All payments required under this paragraph 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 under subsection 
     (a)(3)(E).
       (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, consistent 
     with subsection (a)(1)(B), 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) Credits for shortfall assessments.--If insurer 
     participants are required during the first 5 years of the 
     life of the Fund to make up any shortfall in required insurer 
     payments under subsection (a)(1)(B), then, beginning in year 
     6, the Administrator shall grant each insurer participant a 
     credit against its annual required payments during the 
     applicable years that in the aggregate equal the amount of 
     shortfall assessments paid by such insurer participant during 
     the first 5 years of the life of the Fund. The credit shall 
     be prorated over the same number of years as the number of 
     years during which the insurer participant paid a shortfall 
     assessment. Insurer participants which did not pay all 
     required payments to the Fund during the first 5 years of the 
     life of the Fund shall not be eligible for a credit. The 
     Administrator shall not grant a credit for shortfall 
     assessments imposed under section 405(f).
       (4) 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) Accounting Treatment.--Insurer participants' payment 
     obligations to the Fund shall be subject to discounting under 
     the applicable accounting guidelines for generally accepted 
     accounting purposes and statutory accounting purposes for 
     each insurer participant. This subsection shall in no way 
     reduce the amount of monetary payments to the Fund by insurer 
     participants as required under subsection (a).
       (h) 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.

[[Page S1253]]

       (c) Information From Federal and State Agencies.--The 
     Commission may secure directly from any Federal or State 
     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);
       (4) the remaining obligations to the asbestos trust of a 
     debtor and the class action trust under section 405(g)(8); 
     and
       (5) 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.
       (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 during 
     the subsequent 2 years.
       (4) Repayment obligations.--Repayment of monies borrowed by 
     the Administrator under this subsection shall be repaid in 
     full by the Fund contributors and is limited solely to 
     amounts available, present or future, in the Fund.
       (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 IX.
       (B) A Lung Cancer Account, which shall be used solely to 
     make payments to claimants eligible for an award under the 
     criteria of Level VIII.
       (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) Identity of Certain Defendant Participants; 
     Transparency.--
       (1) Submission of information.--Not later than 60 days 
     after the date of enactment of this Act, any person who, 
     acting in good faith, has knowledge that such person or such 
     person's affiliated group has prior asbestos expenditures of 
     $1,000,000 or greater, shall submit to the Administrator--
       (A) either the name of such person, or such person's 
     ultimate parent; and
       (B) the likely tier to which such person or affiliated 
     group may be assigned under this Act.
       (2) Publication.--Not later than 20 days after the end of 
     the 60-day period referred to in paragraph (1), the 
     Administrator or Interim Administrator, if the Administrator 
     is not yet appointed, shall publish in the Federal Register a 
     list of submissions required by this subsection, including 
     the name of such persons or ultimate parents and the likely 
     tier to which such persons or affiliated groups may be 
     assigned. After publication of such list, any person who, 
     acting in good faith, has knowledge that any other person has 
     prior asbestos expenditures of $1,000,000 or greater may 
     submit to the Administrator or Interim Administrator 
     information on the identity of that person and the person's 
     prior asbestos expenditures.
       (f) No Private Right of Action.--Except as provided in 
     sections 203(b)(2)(D)(ii) and 204(g)(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 and to otherwise defray the 
     reasonable expenses of administering the Fund.

[[Page S1254]]

       (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.
       (d) Bankruptcy Trust Credits.--
       (1) In general.--Notwithstanding any other provision of 
     this Act, but subject to paragraph (2) of this subsection, 
     the Administrator shall provide a credit toward the aggregate 
     payment obligations under sections 202(a)(2) and 212(a)(2)(A) 
     for assets received by the Fund from any bankruptcy trust 
     established under a plan of reorganization confirmed and 
     substantially consummated after July 31, 2004.
       (2) Allocation of credits.--The Administrator shall 
     allocate, for each such bankruptcy trust, the credits for 
     such assets between the defendant and insurer aggregate 
     payment obligations as follows:
       (A) Defendant participants.--The aggregate amount that all 
     persons other than insurers contributing to the bankruptcy 
     trust would have been required to pay as Tier I defendants 
     under section 203(b) if the plan of reorganization under 
     which the bankruptcy trust was established had not been 
     confirmed and substantially consummated and the proceeding 
     under chapter 11 of title 11, United States Code, that 
     resulted in the establishment of the bankruptcy trust had 
     remained pending as of the date of enactment of this Act.
       (B) Insurer participants.--The aggregate amount of all 
     credits to which insurers are entitled to under section 
     202(c)(4)(A) of the Act.

     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 a 30-
     day 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, including a refusal or failure to provide the 
     information required under section 204 needed to determine 
     liability, the Administrator may bring a civil action in any 
     appropriate United States District Court, 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;
       (C) for temporary, preliminary, or permanent relief; or
       (D) to enforce a subpoena issued under section 204(i)(9) to 
     compel the production of documents necessary to determine 
     liability.
       (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 pay any contribution required by this 
     Act, then, in addition to any other penalties imposed by this 
     Act, the Administrator shall 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 unless and until it complies. If any direct 
     insurer or reinsurer refuses to furnish any information 
     requested by the Administrator, 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 unless and until it 
     complies. 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 after the date of the Administrator's 
     determination of default. 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(j)(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

[[Page S1255]]

       (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 2006.''.
       (j) Proposed Transactions.--
       (1) Notice of proposed transaction.--Any participant that 
     has taken any action to effectuate a proposed transaction or 
     a proposed series of transactions under which a significant 
     portion of such participant's assets, properties or business 
     will, if consummated as proposed, be, directly or indirectly, 
     transferred by any means (including, without limitation, by 
     sale, dividend, contribution to a subsidiary or split-off) to 
     1 or more persons other than the participant shall provide 
     written notice to the Administrator of such proposed 
     transaction (or proposed series of transactions). Upon the 
     request of such participant, and for so long as the 
     participant shall not publicly disclose the transaction or 
     series of transactions and the Administrator shall not 
     commence any action under paragraph (6), the Administrator 
     shall treat any such notice as confidential commercial 
     information under section 552 of title 5, United States Code.
       (2) Timing of notice and related actions.--
       (A) In general.--Any notice that a participant is required 
     to give under paragraph (1) shall be given not later than 30 
     days before the date of consummation of the proposed 
     transaction or the first transaction to occur in a proposed 
     series of transactions.
       (B) Other notifications.--
       (i) In general.--Not later than the date in any year by 
     which a participant is required to make its contribution to 
     the Fund, the participant shall deliver to the Administrator 
     a written certification stating that--

       (I) the participant has complied during the period since 
     the last such certification or the date of enactment of this 
     Act with the notice requirements set forth in this 
     subsection; or
       (II) the participant was not required to provide any notice 
     under this subsection during such period.

       (ii) Summary.--The Administrator shall include in the 
     annual report required to be submitted to Congress under 
     section 405 a summary of all such notices (after removing all 
     confidential identifying information) received during the 
     most recent fiscal year.
       (C) Notice completion.--The Administrator shall not 
     consider any notice given under paragraph (1) as given until 
     such time as the Administrator receives substantially all the 
     information required by this subsection.
       (3) Contents of notice.--
       (A) In general.--The Administrator shall determine by rule 
     or regulation the information to be included in the notice 
     required under this subsection, which shall include such 
     information as may be necessary to enable the Administrator 
     to determine whether--
       (i) the person or persons to whom the assets, properties or 
     business are being transferred in the proposed transaction 
     (or proposed series of transactions) should be considered to 
     be the successor in interest of the participant for purposes 
     of this Act, or
       (ii) the proposed transaction (or proposed series of 
     transactions) would, if consummated, be subject to avoidance 
     by a trustee under section 544(b) or 548 of title 11, United 
     States Code, as if, but whether or not, the participant is 
     subject to a case under title 11, United States Code.
       (B) Statements.--The notice shall also include--
       (i) a statement by the participant as to whether it 
     believes any person will or has become a successor in 
     interest to the participant for purposes of this Act and, if 
     so, the identity of that person; and
       (ii) a statement by the participant as to whether that 
     person has acknowledged that it will or has become a 
     successor in interest for purposes of this Act.
       (4) Definition.--In this subsection, the term ``significant 
     portion of the assets, properties or business of a 
     participant'' means assets (including, without limitation, 
     tangible or intangible assets, securities and cash), 
     properties or business of such participant (or its affiliated 
     group, to the extent that the participant has elected to be 
     part of an affiliated group under section 204(g)) that, 
     together with any other asset, property or business 
     transferred by such participant in any of the previous 
     completed 5 fiscal years of such participant (or, as 
     appropriate, its affiliated group), and as determined in 
     accordance with United States generally accepted accounting 
     principles as in effect from time to time--
       (A) generated at least 40 percent of the revenues of such 
     participant (or its affiliated group);
       (B) constituted at least 40 percent of the assets of such 
     participant (or its affiliated group);
       (C) generated at least 40 percent of the operating cash 
     flows of such participant (or its affiliated group); or
       (D) generated at least 40 percent of the net income or loss 
     of such participant (or its affiliated group),
     as measured during any of such 5 previous fiscal years.
       (5) Consummation of transaction.--Any proposed transaction 
     (or proposed series of transactions) with respect to which a 
     participant is required to provide notice under paragraph (1) 
     may not be consummated until at least 30 days after delivery 
     to the Administrator of such notice, unless the Administrator 
     shall earlier terminate the notice period. The Administrator 
     shall endeavor whenever possible to terminate a notice period 
     at the earliest practicable time.
       (6) Right of action.--
       (A) In general.--Notwithstanding section 221(f), if the 
     Administrator or any participant believes that a participant 
     proposes to engage or has engaged, directly or indirectly, 
     in, or is the subject of, a transaction (or series of 
     transactions)--
       (i) involving a person or persons who, as a result of such 
     transaction (or series of transactions), may have or may 
     become the successor in interest or successors in interest of 
     such participant, where the status or potential status as a 
     successor in interest has not been stated and acknowledged by 
     the participant and such person; or
       (ii) that may be subject to avoidance by a trustee under 
     section 544(b) or 548 of title 11, United States Code, as if, 
     but whether or not, the participant is a subject to a case 
     under title 11, United States Code,

     then the Administrator or such participant may, as a deemed 
     creditor under applicable law, bring a civil action in an 
     appropriate forum against the participant or any other person 
     who is either a party to the transaction (or series of 
     transactions) or the recipient of any asset, property or 
     business of the participant.
       (B) Relief allowed.--In any action commenced under this 
     subsection, the Administrator or a participant, as 
     applicable, may seek--
       (i) with respect to a transaction (or series of 
     transactions) referenced in clause (i) of subparagraph (A), a 
     declaratory judgment regarding whether such person will or 
     has become the successor in interest of such participant; or
       (ii) with respect to a transaction (or series of 
     transactions) referenced in clause (ii) of subparagraph (A)--

       (I) a temporary restraining order or a preliminary or 
     permanent injunction against such transaction (or series of 
     transactions); or
       (II) such other relief regarding such transaction (or 
     series of transactions) as the court determines to be 
     necessary to ensure that performance of a participant's 
     payment obligations under this Act is not materially impaired 
     by reason of such transaction (or series of transactions).

       (C) Applicability.--If the Administrator or a participant 
     wishes to challenge a statement made by a participant that a 
     person will not or has not become a successor in interest for 
     purposes of this Act, then this paragraph shall be the 
     exclusive means by which the determination of whether such 
     person will or has become a successor in interest of the 
     participant shall be made. This paragraph shall not preempt 
     any other rights of any person under applicable Federal or 
     State law.
       (D) Venue.--Any action under this paragraph shall be 
     brought in any appropriate United States district court or, 
     to the extent necessary to obtain complete relief, any other 
     appropriate forum outside of the United States.
       (7) Rules and regulations.--The Administrator may 
     promulgate regulations to effectuate the intent of this 
     subsection, including regulations relating to the form, 
     timing and content of notices.

     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.

     SEC. 225. EDUCATION, CONSULTATION, SCREENING, AND MONITORING.

       (a) In General.--The Administrator shall establish a 
     program for the education, consultation, medical screening, 
     and medical monitoring of persons with exposure to asbestos. 
     The program shall be funded by the Fund.
       (b) Outreach and Education.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall establish an 
     outreach and education program, including a website designed 
     to provide information about asbestos-related medical 
     conditions to members of populations at risk of developing 
     such conditions.
       (2) Information.--The information provided under paragraph 
     (1) shall include information about--
       (A) the signs and symptoms of asbestos-related medical 
     conditions;
       (B) the value of appropriate medical screening programs; 
     and
       (C) actions that the individuals can take to reduce their 
     future health risks related to asbestos exposure.
       (3) Contracts.--Preference in any contract under this 
     subsection shall be given to providers that are existing 
     nonprofit organizations with a history and experience of 
     providing occupational health outreach and educational 
     programs for individuals exposed to asbestos.
       (c) Medical Screening Program.--
       (1) Establishment of program.--Not sooner than 18 months or 
     later than 24 months after the Administrator certifies that 
     the

[[Page S1256]]

     Fund is fully operational and processing claims at a 
     reasonable rate, the Administrator shall adopt guidelines 
     establishing a medical screening program for individuals at 
     high risk of asbestos-related disease resulting from an 
     asbestos-related disease. In promulgating such guidelines, 
     the Administrator shall consider the views of the Advisory 
     Committee on Asbestos Disease Compensation, the Medical 
     Advisory Committee, and the public.
       (2) Eligibility criteria.--
       (A) In general.--The guidelines promulgated under this 
     subsection shall establish criteria for participation in the 
     medical screening program.
       (B) Considerations.--In promulgating eligibility criteria 
     the Administrator shall take into consideration all factors 
     relevant to the individual's effective cumulative exposure to 
     asbestos, including--
       (i) any industry in which the individual worked;
       (ii) the individual's occupation and work setting;
       (iii) the historical period in which exposure took place;
       (iv) the duration of the exposure;
       (v) the intensity and duration of non-occupational 
     exposures;
       (vi) the intensity and duration of exposure to risk levels 
     of naturally occurring asbestos as defined by the 
     Environmental Protection Agency; and
       (vii) any other factors that the Administrator determines 
     relevant.
       (3) Protocols.--The guidelines developed under this 
     subsection shall establish protocols for medical screening, 
     which shall include--
       (A) administration of a health evaluation and work history 
     questionnaire;
       (B) an evaluation of smoking history;
       (C) a physical examination by a qualified physician with a 
     doctor-patient relationship with the individual;
       (D) a chest x-ray read by a certified B-reader as defined 
     under section 121(a)(4); and
       (E) pulmonary function testing as defined under section 
     121(a)(13).
       (4) Frequency.--The Administrator shall establish the 
     frequency with which medical screening shall be provided or 
     be made available to eligible individuals, which shall be not 
     less than every 5 years.
       (5) Provision of services.--The Administrator shall provide 
     medical screening to eligible individuals directly or by 
     contract with another agency of the Federal Government, with 
     State or local governments, or with private providers of 
     medical services. The Administrator shall establish strict 
     qualifications for the providers of such services, and shall 
     periodically audit the providers of services under this 
     subsection, to ensure their integrity, high degree of 
     competence, and compliance with all applicable technical and 
     professional standards. No provider of medical screening 
     services may have earned more than 15 percent of their income 
     from the provision of services of any kind in connection with 
     asbestos litigation in any of the 3 years preceding the date 
     of enactment of this Act. All contracts with providers of 
     medical screening services under this subsection shall 
     contain provisions for reimbursement of screening services at 
     a reasonable rate and termination of such contracts for cause 
     if the Administrator determines that the service provider 
     fails to meet the qualifications established under this 
     subsection.
       (6) Limitation of compensation for services.--The 
     compensation required to be paid to a provider of medical 
     screening services for such services furnished to an eligible 
     individual shall be limited to the amount that would be 
     reimbursed at the time of the furnishing of such services 
     under title XVIII of the Social Security Act (42 U.S.C. 1395 
     et seq.) for similar services if such services are covered 
     under title XVIII of the Social Security Act (42 U.S.C. 1395 
     et seq.).
       (7) Funding; periodic review.--
       (A) Funding.--The Administrator shall make such funds 
     available from the Fund to implement this section, with a 
     minimum of $5,000,000 but not more than $10,000,000 each year 
     in each of the 5 years following the effective date of the 
     medical screening program. Notwithstanding the preceding 
     sentence, the Administrator shall suspend the operation of 
     the program or reduce its funding level if necessary to 
     preserve the solvency of the Fund.
       (B) Review.--The Administrator may reduce the amount of 
     funding below $5,000,000 each year if the program is fully 
     implemented. The Administrator's first annual report under 
     section 405 following the close of the 4th year of operation 
     of the medical screening program shall include an analysis of 
     the usage of the program, its cost and effectiveness, its 
     medical value, and the need to continue that program for an 
     additional 5-year period. The Administrator shall also 
     recommend to Congress any improvements that may be required 
     to make the program more effective, efficient, and 
     economical, and shall recommend a funding level for the 
     program for the 5 years following the period of initial 
     funding referred to under subparagraph (A).
       (d) Limitation.--In no event shall the total amount 
     allocated to the medical screening program established under 
     this subsection over the lifetime of the Fund exceed 
     $100,000,000.
       (e) Medical Monitoring Program and Protocols.--
       (1) In general.--The Administrator shall establish 
     procedures for a medical monitoring program for persons 
     exposed to asbestos who have been approved for level I 
     compensation under section 131.
       (2) Procedures.--The procedures for medical monitoring 
     shall include--
       (A) specific medical tests to be provided to eligible 
     individuals and the periodicity of those tests, which shall 
     initially be provided every 3 years and include--
       (i) administration of a health evaluation and work history 
     questionnaire;
       (ii) physical examinations, including blood pressure 
     measurement, chest examination, and examination for clubbing;
       (iii) AP and lateral chest x-ray; and
       (iv) spirometry performed according to ATS standards;
       (B) qualifications of medical providers who are to provide 
     the tests required under subparagraph (A); and
       (C) administrative provisions for reimbursement from the 
     Fund of the costs of monitoring eligible claimants, including 
     the costs associated with the visits of the claimants to 
     physicians in connection with medical monitoring, and with 
     the costs of performing and analyzing the tests.
       (f) Contracts.--The Administrator may enter into contracts 
     with qualified program providers that would permit the 
     program providers to undertake large-scale medical screening 
     and medical monitoring programs by means of subcontracts with 
     a network of medical providers, or other health providers.
       (g) Review.--Not later than 5 years after the date of 
     enactment of this Act, and every 5 years thereafter, the 
     Administrator shall review, and if necessary update, the 
     protocols and procedures established under this section.

     SEC. 226. NATIONAL MESOTHELIOMA RESEARCH AND TREATMENT 
                   PROGRAM.

       (a) In General.--There is established the National 
     Mesothelioma Research and Treatment Program (referred to in 
     this section as the ``Program'') to investigate and advance 
     the detection, prevention, treatment, and cure of malignant 
     mesothelioma.
       (b) Mesothelioma Centers.--
       (1) In general.--The Administrator shall make available 
     $1,500,000 from the Fund, and the Director of the National 
     Institutes of Health shall make available $1,000,000 from 
     amounts available to the Director, for each of fiscal years 
     2006 through 2015, for the establishment of each of 10 
     mesothelioma disease research and treatment centers.
       (2) Requirements.--The Director of the National Institutes 
     of Health, in consultation with the Medical Advisory 
     Committee, shall conduct a competitive peer review process to 
     select sites for the centers described in paragraph (1). The 
     Director shall ensure that sites selected under this 
     paragraph are--
       (A) geographically distributed throughout the United States 
     with special consideration given to areas of high incidence 
     of mesothelioma disease;
       (B) closely associated with Department of Veterans Affairs 
     medical centers, in order to provide research benefits and 
     care to veterans who have suffered excessively from 
     mesothelioma;
       (C) engaged in exemplary laboratory and clinical 
     mesothelioma research, including clinical trials, to provide 
     mechanisms for effective therapeutic treatments, as well as 
     detection and prevention, particularly in areas of palliation 
     of disease symptoms and pain management;
       (D) participants in the National Mesothelioma Registry and 
     Tissue Bank under subsection (c) and the annual International 
     Mesothelioma Symposium under subsection (d)(2)(E);
       (E) with respect to research and treatment efforts, 
     coordinated with other centers and institutions involved in 
     exemplary mesothelioma research and treatment;
       (F) able to facilitate transportation and lodging for 
     mesothelioma patients, so as to enable patients to 
     participate in the newest developing treatment protocols, and 
     to enable the centers to recruit patients in numbers 
     sufficient to conduct necessary clinical trials; and
       (G) nonprofit hospitals, universities, or medical or 
     research institutions incorporated or organized in the United 
     States.
       (c) Mesothelioma Registry and Tissue Bank.--
       (1) Establishment.--The Administrator shall make available 
     $1,000,000 from the Fund, and the Director of the National 
     Institutes of Health shall make available $1,000,000 from 
     amounts available to the Director, for each of fiscal years 
     2006 through 2015 for the establishment, maintenance, and 
     operation of a National Mesothelioma Registry to collect data 
     regarding symptoms, pathology, evaluation, treatment, 
     outcomes, and quality of life and a Tissue Bank to include 
     the pre- and post-treatment blood (serum and blood cells) 
     specimens as well as tissue specimens from biopsies and 
     surgery. Not less than $500,000 of the amount made available 
     under the preceding sentence in each fiscal year shall be 
     allocated for the collection and maintenance of tissue 
     specimens.
       (2) Requirements.--The Director of the National Institutes 
     of Health, with the advice and consent of the Medical 
     Advisory Committee, shall conduct a competitive peer review 
     process to select a site to administer the Registry and 
     Tissue Bank described in paragraph (1). The Director shall 
     ensure that the site selected under this paragraph--
       (A) is available to all mesothelioma patients and 
     qualifying physicians throughout the United States;

[[Page S1257]]

       (B) is subject to all applicable medical and patient 
     privacy laws and regulations;
       (C) is carrying out activities to ensure that data is 
     accessible via the Internet; and
       (D) provides data and tissue samples to qualifying 
     researchers and physicians who apply for such data in order 
     to further the understanding, prevention, screening, 
     diagnosis, or treatment of malignant mesothelioma.
       (d) Center for Mesothelioma Education.--
       (1) Establishment.--The Administrator shall make available 
     $1,000,000 from the Fund, and the Director of the National 
     Institutes of Health shall make available $1,000,000 from 
     amounts available to the Director, for each of fiscal years 
     2006 through 2015 for the establishment, with the advice and 
     consent of the Medical Advisory Committee, of a Center for 
     Mesothelioma Education (referred to in this section as the 
     ``Center'') to--
       (A) promote mesothelioma awareness and education;
       (B) assist mesothelioma patients and their family members 
     in obtaining necessary information; and
       (C) work with the centers established under subsection (b) 
     in advancing mesothelioma research.
       (2) Activities.--The Center shall--
       (A) educate the public about the new initiatives contained 
     in this section through a National Mesothelioma Awareness 
     Campaign;
       (B) develop and maintain a Mesothelioma Educational 
     Resource Center (referred to in this section as the 
     ``MERCI''), that is accessible via the Internet, to provide 
     mesothelioma patients, family members, and front-line 
     physicians with comprehensive, current information on 
     mesothelioma and its treatment, as well as on the existence 
     of, and general claim procedures for the Asbestos Injury 
     Claims Resolution Fund;
       (C) through the MERCI and otherwise, educate mesothelioma 
     patients, family members, and front-line physicians about, 
     and encourage such individuals to participate in, the centers 
     established under subsection (b), the Registry and the Tissue 
     Bank;
       (D) complement the research efforts of the centers 
     established under subsection (b) by awarding competitive, 
     peer-reviewed grants for the training of clinical specialist 
     fellows in mesothelioma, and for highly innovative, 
     experimental or pre-clinical research; and
       (E) conduct an annual International Mesothelioma Symposium.
       (3) Requirements.--The Center shall--
       (A) be a nonprofit corporation under section 501(c)(3) of 
     the Internal Revenue Code of 1986;
       (B) be a separate entity from and not an affiliate of any 
     hospital, university, or medical or research institution; and
       (C) demonstrate a history of program spending that is 
     devoted specifically to the mission of extending the survival 
     of current and future mesothelioma patients, including a 
     history of soliciting, peer reviewing through a competitive 
     process, and funding research grant applications relating to 
     the detection, prevention, treatment, and cure of 
     mesothelioma.
       (4) Contracts for oversight.--The Director of the National 
     Institutes of Health may enter into contracts with the Center 
     for the selection and oversight of the centers established 
     under subsection (b), or selection of the director of the 
     Registry and the Tissue Bank under subsection (c) and 
     oversight of the Registry and the Tissue Bank.
       (e) Report and Recommendations.--Not later than September 
     30, 2015, The Director of the National Institutes of Health 
     shall, after opportunity for public comment and review, 
     publish and provide to Congress a report and recommendations 
     on the results achieved and information gained through the 
     Program, including--
       (1) information on the status of mesothelioma as a national 
     health issue, including--
       (A) annual United States incidence and death rate 
     information and whether such rates are increasing or 
     decreasing;
       (B) the average prognosis; and
       (C) the effectiveness of treatments and means of 
     prevention;
       (2) promising advances in mesothelioma treatment and 
     research which could be further developed if the Program is 
     reauthorized; and
       (3) a summary of advances in mesothelioma treatment made in 
     the 10-year period prior to the report and whether those 
     advances would justify continuation of the Program and 
     whether it should be reauthorized for an additional 10 years.
       (f) Severability.--If any provision of this Act, or 
     amendment made by this Act, or the application of such 
     provision or amendment to any person or circumstance is held 
     to be unconstitutional, the remainder of this Act (including 
     this section), the amendments made by this Act, and the 
     application of the provisions of such to any person or 
     circumstance shall not be affected thereby.
       (g) Regulations.--The Director of the National Institutes 
     of Health shall promulgate regulations to provide for the 
     implementation of this section.

                       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.
       (c) Expedited Procedures.--The United States Court of 
     Appeals for the District of Columbia shall provide for 
     expedited procedures for reviews under this section.

     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.
       (d) Expedited Procedures.--The United States Court of 
     Appeals shall provide for expedited procedures for reviews 
     under this section.

     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(j), a notice of financial 
     hardship or inequity determination under section 204(e), a 
     notice of a distributor's adjustment under section 204(n), 
     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(j), a notice of financial hardship or inequity 
     determination under section 204(e), or a notice of a 
     distributor's adjustment under section 204(n), shall commence 
     any action within 30 days after a decision on rehearing under 
     section 204(j)(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. The court shall give such action expedited 
     consideration.

     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 
     relief 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.--
       (1) Payments.--No court may issue a stay of payment by any 
     party into the Fund pending its final judgment.
       (2) Legal challenges.--No court may issue a stay or 
     injunction pending final judicial action, including the 
     exhaustion of all appeals, on a legal challenge to this Act 
     or any portion of this Act.
       (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.--The United States District Court for the 
     District of Columbia shall have exclusive jurisdiction over 
     any action challenging the constitutionality of any provision 
     or application of this Act. The following rules shall apply:
       (A) The action shall be filed in the United States District 
     Court for the District of Columbia and shall be heard by a 3-
     judge court convened under section 2284 of title 28, United 
     States Code.
       (B) A final decision in the action shall be reviewable only 
     by appeal directly to the Supreme Court of the United States. 
     Such appeal shall be taken by the filing of a notice of 
     appeal within 10 days, and the filing of a

[[Page S1258]]

     jurisdictional statement within 30 days, after the entry of 
     the final decision.
       (C) 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.
       (2) Repayment to asbestos trust and class action trust.--If 
     the transfer of the assets of any asbestos trust of a debtor 
     or any class action trust (or this Act as a whole) is held to 
     be unconstitutional or otherwise unlawful, the Fund shall 
     transfer the remaining balance of such assets (determined 
     under section 405(f)(1)(A)(iii)) back to the appropriate 
     asbestos trust or class action trust within 90 days after 
     final judicial action on the legal challenge, including the 
     exhaustion of all appeals.

                   TITLE IV--MISCELLANEOUS PROVISIONS

     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 2006, 
     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 2006), 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 2006) 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 
     2006.''.
       (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 2006) 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 2006); 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 2006; 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 2006, 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 2006 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 2006 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 clause (ii) of this 
     subparagraph and 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 2006) shall be transferred to the 
     Fund not later than 90 days after the date of enactment of 
     the Fairness in Asbestos Injury Resolution Act of 2006 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 clause (i), and except as provided 
     under subparagraphs (B), (C), and (E), any trust established 
     to provide compensation for asbestos claims (as defined in 
     section 3 of the Fairness in Asbestos Injury Resolution Act 
     of 2006), other than a trust established under a 
     reorganization plan subject to section 202(c) of that Act, 
     shall transfer the assets in such trust to the Fund as 
     follows:

       ``(I) In the case of a trust established on or before 
     December 31, 2005, such trust shall transfer 90 percent of 
     the assets in such trust to the Fund not later than 90 days 
     after the date of enactment of the Fairness in Asbestos 
     Injury Resolution Act of 2006.
       ``(II) In the case of a trust established after December 
     31, 2005, such trust shall transfer 88 percent of the assets 
     in such trust to the Fund not later than 90 days after the 
     date of enactment of the Fairness in Asbestos Injury 
     Resolution Act of 2006.

       ``(iii) Not later than 90 days after the date on which the 
     Administrator of the Office of Asbestos Disease Compensation 
     (referred to in this section as the `Administrator') 
     certifies in accordance with section 106(f)(3)(E)(ii) of the 
     Fairness in Asbestos Injury Resolution Act of 2006 that the 
     Fund is fully operational and paying all valid asbestos 
     claims at a reasonable rate, any trust transferring assets 
     under clause (ii) shall transfer all remaining assets in such 
     trust to the Fund. The transfer required by this clause shall 
     not include any trust assets needed to pay--

       ``(I) previously incurred expenses; or
       ``(II) claims determined to be eligible for compensation 
     under clause (vi).

       ``(iv) Except as provided under subparagraph (B), the 
     Administrator of the Fund shall accept any assets transferred 
     under clauses (ii) or (iii) and utilize them for any purposes 
     for the Fund under section 221 of the Fairness in Asbestos 
     Injury Resolution Act of 2006, including the payment of 
     claims for awards under such Act to beneficiaries of the 
     trust from which the assets were transferred.
       ``(v) 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).
       ``(vi) Any trust transferring assets under clause (ii) 
     shall be subject to the following requirements:

       ``(I) The trust may continue to process asbestos claims, 
     make eligibility determinations, and pay claims in a manner 
     consistent with this clause if a claimant--

       ``(aa) has a pending asbestos claim as of the date of 
     enactment of the Fairness in Asbestos Injury Resolution Act 
     of 2006;
       ``(bb) provides to the trust a copy of a binding election 
     submitted to Administrator waiving the right to secure 
     compensation under section 106(f)(2) of the Fairness in 
     Asbestos Injury Resolution Act of 2006, unless the claimant 
     is permitted under section 106(f)(2)(B) of such Act to seek a 
     judgment or order for monetary damages from a Federal or 
     State court;
       ``(cc) meets the requirements for compensation under the 
     distribution plan for the trust as of the date of enactment 
     of the Fairness in Asbestos Injury Resolution Act of 2006;
       ``(dd) for any non-malignant condition satisfies the 
     medical criteria under the distribution plan for the trust 
     that is most nearly equivalent to the medical criteria 
     described in section 121(d)(2) of the Fairness in Asbestos 
     Injury Resolution Act of 2006, except that, notwithstanding 
     any provision of the distribution plan of the trust to the 
     contrary, the trust shall not accept the results of a DLCO 
     test (as such test is defined in section 121(a) of the 
     Fairness in Asbestos Injury Resolution Act of 2006) for the 
     purpose of demonstrating respiratory impairment; and
       ``(ee) for any of the cancers listed in section 121(d)(6) 
     of the Fairness in Asbestos Injury Resolution Act of 2006 
     does not seek, and the trust does not pay, any compensation 
     until such time as the Institute of Medicine finds that there 
     is a causal relationship between asbestos exposure and such 
     cancer, in which case such claims may be paid if such claims 
     otherwise qualify for compensation under the distribution 
     plan of the trust as of the date of enactment of the Fairness 
     in Asbestos Injury Resolution Act of 2006.

       ``(II) The trust shall not accept medical evidence from any 
     physician, medical facility, or laboratory whose evidence 
     would be not be accepted as evidence--

       ``(aa) under the Manville Trust as of the date of enactment 
     of the Fairness in Asbestos Injury Resolution Act of 2006; or
       ``(bb) by the Administrator under section 115(a)(2) of such 
     Act.

[[Page S1259]]

       ``(III) The trust shall not amend its scheduled payment 
     amount or payment percentage as in effect on the date of 
     enactment of the Fairness in Asbestos Injury Resolution Act 
     of 2006.
       ``(IV) The trust shall not amend its eligibility criteria 
     after the date of enactment of the Fairness in Asbestos 
     Injury Resolution Act of 2006, except to conform any criteria 
     in any category under the distribution plan of the trust with 
     related criteria in a related category under section 121 of 
     the Fairness in Asbestos Injury Resolution Act of 2006.
       ``(V) The trust shall notify the Administrator of the Fund 
     of any claim determined to be eligible for compensation after 
     the date of enactment of the Fairness in Asbestos Injury 
     Resolution Act of 2006, and the amount of any such 
     compensation awarded to the claimant of such claim. The 
     notification required by this subclause shall be made in such 
     form as the Administrator shall require, and not later than 
     15 days after the date the determination is made.
       ``(VI) The trust shall not pay any claim without a 
     certification by a claimant, subject to the penalties 
     described in the Fairness in Asbestos Injury Resolution Act 
     of 2006, stating the amount of collateral source compensation 
     that such claimant has received, or is entitled to receive, 
     under section 134 of the Fairness in Asbestos Injury 
     Resolution Act of 2006. In the event that collateral source 
     compensation exceeds the amount that a claimant would be paid 
     in the category under that Act that is most nearly similar to 
     the claimant's claim under the distribution plan of the 
     trust, the aggregate value of the awards received by the 
     claimant shall be reduced pro rata so that the claimant's 
     total compensation does not exceed what would be paid for 
     such a condition under the Fairness in Asbestos Injury 
     Resolution Act of 2006, excluding any adjustments under 
     section 131(b)(3) and (4) of that Act.
       ``(VII) Upon finding that the trust has breached any 
     condition or conditions of this clause, the Administrator 
     shall require the immediate payment of remaining trust assets 
     into the Fund in accordance with section 402(f) of the 
     Fairness in Asbestos Injury Resolution Act of 2006. The 
     Administrator shall be entitled to an injunction against 
     further payments of nonliquidated claims from the assets of 
     the trust during the pendency of any dispute regarding the 
     findings of noncompliance by the Administrator. The court in 
     which any action to enforce the obligations of the trust is 
     pending shall afford the action expedited consideration.

       ``(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 2006 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 2006, 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 2006, 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.--
       ``(A) In general.--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 2006, and an interlocutory order 
     denying such relief shall not be subject to immediate appeal 
     under section 1291(a) of title 28.
       ``(B) Availability of fund assets.--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 such transfer 
     shall no longer be 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 304 of the Fairness in Asbestos Injury 
     Resolution Act of 2006.
       (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 2006), 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 2006), 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 
     and the perfected claims of the secured creditors. 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.
       (j) Standing in Bankruptcy Proceedings.--The Administrator 
     shall have standing in any bankruptcy case involving a debtor 
     participant. No bankruptcy court may require the 
     Administrator to return property seized to satisfy 
     obligations to the Fund.

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

       (a) Effect on Federal and State Law.--The provisions of 
     this Act shall supersede any Federal or State law insofar as 
     such law may relate to any asbestos claim, including any 
     claim described under subsection (e)(2).
       (b) Effect on Silica Claims.--
       (1) In general.--
       (A) Rule of construction.--Nothing in this Act shall be 
     construed to preempt, bar, or otherwise preclude any personal 
     injury claim attributable to exposure to silica as to which 
     the plaintiff--
       (i) pleads with particularity and establishes by a 
     preponderance of evidence either that--

       (I) no claim has been asserted or filed by or with respect 
     to the exposed person in any forum for any asbestos-related 
     condition and the exposed person (or another claiming on 
     behalf of or through the exposed person) is

[[Page S1260]]

     not eligible for any monetary award under this Act; or
       (II)(aa) the exposed person suffers or has suffered a 
     functional impairment that was caused by exposure to silica; 
     and
       (bb) asbestos exposure was not a substantial contributing 
     factor to such functional impairment; and

       (ii) satisfies the requirements of paragraph (2).
       (B) Preemption.--Claims attributable to exposure to silica 
     that fail to meet the requirements of subparagraph (A) shall 
     be preempted by this Act.
       (2) Required evidence.--
       (A) In general.--In any claim to which paragraph (1) 
     applies, the initial pleading (or, for claims pending on the 
     date of enactment of this Act, an amended pleading to be 
     filed within 60 days after such date, but not later than 60 
     days before trial, shall plead with particularity the 
     elements of subparagraph (A)(i)(I) or (II) and shall be 
     accompanied by the information described under subparagraph 
     (B)(i) through (iv).
       (B) Pleadings.--If the claim pleads the elements of 
     paragraph (1)(A)(i)(II) and by the information described 
     under clauses (i) through (iv) of this subparagraph if the 
     claim pleads the elements of paragraph (1)(A)(i)(I)--
       (i) admissible evidence, including at a minimum, a B-
     reader's report, the underlying x-ray film and such other 
     evidence showing that the claim may be maintained and is not 
     preempted under paragraph (1);
       (ii) notice of any previous lawsuit or claim for benefits 
     in which the exposed person, or another claiming on behalf of 
     or through the injured person, asserted an injury or 
     disability based wholly or in part on exposure to asbestos;
       (iii) if known by the plaintiff after reasonable inquiry by 
     the plaintiff or his representative, the history of the 
     exposed person's exposure, if any, to asbestos; and
       (iv) copies of all medical and laboratory reports 
     pertaining to the exposed person that refer to asbestos or 
     asbestos exposure.
       (3) Statute of limitations.--In general, the statute of 
     limitations for a silica claim shall be governed by 
     applicable State law, except that in any case under this 
     subsection, the statute of limitations shall only start to 
     run when the plaintiff becomes impaired.
       (c) Superseding Provisions.--
       (1) In general.--Except as provided under paragraph (3) and 
     section 106(f), any agreement, understanding, or undertaking 
     by any person or affiliated group with respect to the 
     treatment of any asbestos claim, including a claim described 
     under subsection (e)(2), 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.--Except as provided under paragraph 
     (3), 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 such agreement, understanding, or undertaking.
       (3) Exception.--
       (A) In general.--Except as provided in section 202(f), 
     nothing in this Act shall abrogate a binding and legally 
     enforceable written settlement agreement between any 
     defendant participant or its insurer and a specific named 
     plaintiff with respect to the settlement of an asbestos claim 
     of the plaintiff if--
       (i) before the date of enactment of this Act, the 
     settlement agreement was executed by--

       (I) the authorized legal representative acting on behalf of 
     the settling defendant or insurer, the settling defendant or 
     the settling insurer; and
       (II)(aa) the specific individual plaintiff, or the 
     individual's immediate relatives; or
       (bb) an authorized legal representative acting on behalf of 
     the plaintiff where the plaintiff is incapacitated and the 
     settlement agreement is signed by that authorized legal 
     representative;

       (ii) the settlement agreement contains an express 
     obligation by the settling defendant or settling insurer to 
     make a future direct monetary payment or payments in a fixed 
     amount or amounts to the individual plaintiff; and
       (iii) within 30 days after the date of enactment of this 
     Act, or such shorter time period specified in the settlement 
     agreement, the plaintiff has fulfilled all conditions to 
     payment under the settlement agreement.
       (B) Bankruptcy-related agreements.--The exception set forth 
     in this paragraph shall not apply to any bankruptcy-related 
     agreement.
       (C) Collateral source.--Any settlement payment under this 
     section is a collateral source if the plaintiff seeks 
     recovery from the Fund.
       (D) Abrogation.--Nothing in subparagraph (A) shall abrogate 
     a settlement agreement otherwise satisfying the requirements 
     of that subparagraph if such settlement agreement expressly 
     anticipates the enactment of this Act and provides for the 
     effects of this Act.
       (E) Health care insurance or expenses settlements.--Nothing 
     in this Act shall abrogate or terminate an otherwise fully 
     enforceable settlement agreement which was executed before 
     the date of enactment of this Act directly by the settling 
     defendant or the settling insurer and a specific named 
     plaintiff to pay the health care insurance or health care 
     expenses of the plaintiff.
       (d) Exclusive Remedy.--
       (1) In general.--Except as provided under section 524(j)(3) 
     of title 11, United States Code, as amended by this Act, the 
     remedies provided under this Act shall be the exclusive 
     remedy for any asbestos claim, including any claim described 
     in subsection (e)(2), under any Federal or State law.
       (e) Bar on Asbestos Claims.--
       (1) In general.--No asbestos claim (including any claim 
     described in paragraph (2)) may be pursued, and no pending 
     asbestos claim may be maintained, in any Federal or State 
     court, except as provided under section 524(j)(3) of title 
     11, United States Code, as amended by 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 
     healthcare 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 paragraph (2)) in any Federal 
     or State court 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 preempted, barred, or otherwise precluded 
     under this Act, and 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) Review of remand orders.--
       (i) In general.--Section 1447 of title 28, United States 
     Code, shall apply to any removal of a case under this 
     section, except that notwithstanding subsection (d) of that 
     section, a court of appeals may accept an appeal from an 
     order of a district court granting or denying a motion to 
     remand an action to the State court from which it was removed 
     if application is made to the court of appeals not less than 
     30 days after entry of the order.
       (ii) Time period for judgment.--If the court of appeals 
     accepts an appeal under clause (i), the court shall complete 
     all action on such appeal, including rendering judgment, not 
     later than 180 days after the date on which such appeal was 
     filed, unless an extension is granted under clause (iii).

[[Page S1261]]

       (iii) Extension of time period.--The court of appeals may 
     grant an extension of the 180-day period described in clause 
     (ii) if--

       (I) all parties to the proceeding agree to such extension, 
     for any period of time; or
       (II) such extension is for good cause shown and in the 
     interests of justice, for a period not to exceed 30 days.

       (iv) Denial of appeal.--If a final judgment on the appeal 
     under clause (i) is not issued before the end of the period 
     described in clause (ii), including any extension under 
     clause (iii), the appeal shall be denied.
       (E) Jurisdiction.--The jurisdiction of the district court 
     shall be limited to--
       (i) determining whether removal was proper; and
       (ii) determining, based on the evidentiary record, whether 
     the claim presented is preempted, barred, or otherwise 
     precluded under this Act.
       (6) Credits.--
       (A) In general.--If, notwithstanding the express intent of 
     Congress stated in this section, any court finally determines 
     for any reason that an asbestos claim is not barred under 
     this subsection and 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.
       (B) Requirements.--The Administrator shall require 
     participants seeking credit under this paragraph to 
     demonstrate that the participant--
       (i) timely pursued all available remedies, including 
     remedies available under this paragraph to obtain dismissal 
     of the claim; and
       (ii) 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.
       (C) Information.--The Administrator may require a 
     participant seeking credit under this paragraph to furnish 
     such further information as is necessary and appropriate to 
     establish eligibility for, and the amount of, the credit.
       (D) Intervention.--The Administrator may intervene in any 
     action in which a credit may be due under this paragraph.

     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).
       (C) Earned erosion amount.--The term ``earned erosion 
     amount'' means 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 Defendant Participant's Funding 
  Obligation Ends:                               Applicable Percentage:
2...............................................................67.06  
3...............................................................86.72  
4...............................................................96.55  
5..............................................................102.45  
6...............................................................90.12  
7...............................................................81.32  
8...............................................................74.71  
9...............................................................69.58  
10..............................................................65.47  
11..............................................................62.11  
12..............................................................59.31  
13..............................................................56.94  
14..............................................................54.90  
15..............................................................53.14  
16..............................................................51.60  
17..............................................................50.24  
18..............................................................49.03  
19..............................................................47.95  
20..............................................................46.98  
21..............................................................46.10  
22..............................................................45.30  
23..............................................................44.57  
24..............................................................43.90  
25..............................................................43.28  
26..............................................................42.71  
27..............................................................42.18  
28..............................................................40.82  
29..............................................................39.42  
       (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 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 38.1 percent of each 
     defendant participant's scheduled payment amount.
       (B) 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's or reinsurer's payments to the Fund or the erosion 
     deemed to occur under this section.
       (C) Policies without certain limits or with exclusion.--
     Except as provided under subparagraph (E), 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.
       (D) Treatment of consolidation election.--If an affiliated 
     group elects consolidation as provided in section 204(g), the 
     total erosion of limits for the affiliated group under 
     paragraph (2)(A) shall not exceed 38.1 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 38.1 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.
       (E) 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. If 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).
       (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

[[Page S1262]]

     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, except subject to section 212(a)(1)(D), 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 purchased by a participant after December 31, 
     1990, 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.--Subject to section 
     212(a)(1)(D), 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 written agreement specifically providing 
     insurance, reinsurance, or other reimbursement 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 date 
     of enactment of this Act, 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 such 
     date of enactment, or by any Tier I defendant participant 
     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 claims are preempted, barred, or superseded by 
     section 403;
       (B) any such rights or obligations of such person with 
     respect to insurance or reinsurance are prohibited by 
     paragraph (1) or (2) of subsection (e); or
       (C) the limits of insurance otherwise available to such 
     participant in respect of asbestos claims are deemed to be 
     eroded under subsection (a).

     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 an analysis of--
       (1) the claims experience of the program 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 
     exposures underlying those claims;
       (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;
       (C) a summary of the eligibility determinations made by the 
     Office under section 114;
       (D) a summary of the awards made from the Fund, including 
     the amount of the awards; and
       (E) for each disease level, 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 such claimants are entitled according 
     to section 131;
       (2) the administrative performance of the program, 
     including--
       (A) the performance of the program in meeting the time 
     limits prescribed by law and an analysis of the reasons for 
     any systemic delays;
       (B) any backlogs of claims that may exist and an 
     explanation of the reasons for such backlogs;
       (C) the costs to the Fund of administering the program; and
       (D) any other significant factors bearing on the efficiency 
     of the program;
       (3) the financial condition of the Fund, including--
       (A) statements of the Fund's revenues, expenses, assets, 
     and liabilities;
       (B) the identity of all participants, the funding 
     allocations of each participant, and the total amounts of all 
     payments to the Fund;
       (C) a list of all financial hardship or inequity 
     adjustments applied for during the fiscal year, and the 
     adjustments that were made during the fiscal year;
       (D) a statement of the investments of the Fund; and
       (E) a statement of the borrowings of the Fund;
       (4) the financial prospects of the Fund, including--
       (A) an estimate of the number and types of claims, the 
     amount of awards, and the participant payment obligations for 
     the next fiscal year;
       (B) 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 and over the predicted 
     lifetime of the program 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; and
       (C) a report on any changes in projections made in earlier 
     annual reports or sunset analyses regarding the Fund's 
     ability to meet its financial obligations;
       (5) a summary of any legal actions brought or penalties 
     imposed under section 223, any referrals made to law 
     enforcement authorities under section 408 (a) and (b), and 
     any contributions to the Fund collected under section 408(e);
       (6) 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 those claimants who suffer 
     from diseases or conditions for which exposure to asbestos 
     was a substantial contributing factor;
       (7) a summary of the results of audits conducted under 
     section 115; and
       (8) a summary of prosecutions under section 1348 of title 
     18, United States Code (as added by this Act).
       (c) Certification.--The Administrator shall certify in the 
     annual report required under subsection (a) whether, in the 
     best judgment of the Administrator, the Fund will have 
     sufficient resources for the fiscal year in which the report 
     is issued to make all required payments--
       (1) with respect to all claims determined eligible for 
     compensation that have been filed and that the Administrator 
     projects will be filed with the Office for the fiscal year; 
     and
       (2) to satisfy the Fund's debt repayment obligation, 
     administrative costs, and other financial obligations.
       (d) Claims Analysis and Verification of Unanticipated 
     Claims.--
       (1) In general.--If the Administrator concludes, on the 
     basis of the annual report submitted under this section, 
     that--
       (A) the average number of claims that qualify for 
     compensation under a claim level or designation exceeds 125 
     percent of the number of claims expected to qualify for 
     compensation under that claim level or designation in the 
     most recent Congressional Budget Office estimate of asbestos-
     injury claims for any 3-year period, the Administrator shall 
     conduct a review of a statistically significant sample of 
     claims qualifying for compensation under the appropriate 
     claim level or designation; or
       (B) the average number of claims that qualify for 
     compensation under a claim level or designation is less than 
     75 percent of the

[[Page S1263]]

     number of claims expected to qualify for compensation under 
     that claim level or designation in the most recent 
     Congressional Budget Office estimate of asbestos-injury 
     claims for any 3-year period, the Administrator shall conduct 
     a review of a statistically significant sample of claims 
     deemed ineligible for compensation under the appropriate 
     claim level or designation.
       (2) Determinations.--The Administrator shall examine the 
     best available medical evidence and any recommendation made 
     under subsection (b)(5) in order to determine which 1 or more 
     of the following is true:
       (A) Without a significant number of exceptions, all of the 
     claimants who qualified for compensation under the claim 
     level or designation suffer from an injury or disease for 
     which exposure to asbestos was a substantial contributing 
     factor.
       (B) A significant number of claimants who qualified for 
     compensation under the claim level or designation do not 
     suffer from an injury or disease for which exposure to 
     asbestos was a substantial contributing factor.
       (C) A significant number of claimants who were denied 
     compensation under the claim level of designation did suffer 
     from an injury or disease for which exposure to asbestos was 
     a substantial contributing factor.
       (D) The Congressional Budget Office projections 
     underestimated or overestimated the actual number of persons 
     who suffer from an injury or disease for which exposure to 
     asbestos was a substantial contributing factor.
       (3) Recommendations concerning claims criteria.--If the 
     Administrator determines that a significant number of the 
     claimants who qualified for compensation under the claim 
     level under review do not suffer from an injury or disease 
     for which exposure to asbestos was a substantial contributing 
     factor, or that a significant number of the claimants who 
     were denied compensation under the claim level under review 
     suffered from an injury or disease for which exposure to 
     asbestos was a substantial contributing factor, the 
     Administrator shall recommend to Congress, under subsection 
     (f), changes to the compensation criteria in order to ensure 
     that the Fund provides compensation for injury or disease for 
     which exposure to asbestos was a substantial contributing 
     factor, but does not provide compensation to claimants who do 
     not suffer from an injury or disease for which asbestos 
     exposure was a substantial contributing factor.
       (e) Recommendations of Administrator and Advisory 
     Committee.--
       (1) Referral.--If the Administrator recommends changes to 
     this Act under subsection (d), the recommendations and 
     accompanying analysis shall be referred to the Advisory 
     Committee on Asbestos Disease Compensation established under 
     section 102 (in this subsection referred to as the ``Advisory 
     Committee'').
       (2) Advisory committee recommendations.--The Advisory 
     Committee shall hold expedited public hearings on the 
     alternatives and recommendations of the Administrator and 
     make its own recommendations for reform of the program under 
     titles I and II.
       (3) Transmittal to congress.--Not later than 90 days after 
     receiving the recommendations of the Administrator, the 
     Advisory Committee shall transmit the recommendations of the 
     Administrator and the recommendations of the Advisory 
     Committee to the Committee on the Judiciary of the Senate and 
     the Committee on the Judiciary of the House of 
     Representatives.
       (f) Shortfall Analysis.--
       (1) In general.--
       (A) Analysis.--If the Administrator concludes, at any time, 
     that the Fund may not be able to pay claims as such claims 
     become due at any time within the next 5 years and to satisfy 
     its other obligations, the Administrator shall prepare an 
     analysis of the reasons for the situation, an estimation of 
     when the Fund will no longer be able to pay claims as such 
     claims 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 
     Administrator shall submit such analysis to the Committee on 
     the Judiciary of the Senate and the Committee on the 
     Judiciary of the House of Representatives. Any 
     recommendations made by the Administrator for changes to the 
     program shall, in addition, be referred to the Advisory 
     Committee on Asbestos Disease Compensation established under 
     section 102 for review.
       (B) Range of alternatives.--The range of alternatives under 
     subparagraph (A) may include--
       (ii) 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, enhancement of enforcement authority, 
     changes in the timing of payments, changes in contributions 
     by defendant participants, insurer participants (or both such 
     participants), or changes in award values); or
       (iii) any measure that the Administrator considers 
     appropriate.
       (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, including return on investments, 
     borrowing capacity, interest rates, ability to collect 
     contributions, and other relevant factors;
       (B) the operation of the Fund generally, including 
     administration of the claims processing, the ability of the 
     Administrator to collect contributions from participants, 
     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 appropriateness of the diagnostic, exposure, and 
     medical criteria, including the adequacy of the criteria to 
     rule out idiopathic mesothelioma;
       (D) the actual incidence of asbestos-related diseases, 
     including mesothelioma, based on epidemiological studies and 
     other relevant data;
       (E) compensation of diseases with alternative causes; and
       (F) other factors that the Administrator considers 
     relevant.
       (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.

     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 shall 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 shall be 
     construed to--
       (1) create any obligation of funding from the United States 
     Government, including any borrowing authorized under section 
     221(b)(2); 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. The 
     payment of any such medical expenses shall not be collateral 
     source compensation as defined under section 134(a).
       (b) Healthcare From Provider of Choice.--Nothing in this 
     Act shall be construed to preclude any eligible claimant from 
     receiving healthcare from the provider of their choice.

     SEC. 408. VIOLATIONS OF ENVIRONMENTAL 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 the Secretary of Labor or 
     the appropriate State agency with authority to enforce 
     occupational safety and health standards, for investigation 
     for possible civil or criminal penalties under section 17 of 
     the Occupational Safety and Health Act of 1970 (29 U.S.C. 
     666).

     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

[[Page S1264]]

     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, healthcare 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 healthcare, 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 2006.''.
                                 ______
                                 
  SA 2804. Mr. REID submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 132, between lines 7 and 8, insert the following:
       (c) Reimbursement for Reasonable Medical Expenses.--In 
     addition to the award under subsection (b), an asbestos 
     claimant with a claim for malignant Level IX shall receive 
     reimbursement for reasonable medical expenses recommended by 
     a qualified physician. The Administrator shall promulgate 
     regulations governing the reimbursement of medical expenses 
     under this subsection.
                                 ______
                                 
  SA 2805. Mr. REID submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 392, after line 5, insert the following:

     SEC. 503. SUBSTANTIAL WEIGHTED EXPOSURE FOR EXPOSURE 
                   OCCURRING AFTER 1975.

       Notwithstanding section 121(a)(16)(E), for purposes of the 
     calculations to be made under subparagraphs (B), (C), and (D) 
     of paragraph (16) of section 121, each year of asbestos 
     exposure that occurred after 1975 shall be counted as \1/2\ 
     of its full value.
                                 ______
                                 
  SA 2806. Mr. REID submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 392, after line 5, insert the following:

     SEC. 503. EXPOSURE PRESUMPTIONS.

       Notwithstanding any other provision of this Act, any 
     asbestos exposure that is a contributing factor in causing an 
     asbestos-related disease, condition, or illness shall meet 
     the exposure requirements for this Act.
                                 ______
                                 
  SA 2807. Mr. REID submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 392, after line 5, insert the following:

     SEC. 503. CONTINUANCE OF MESOTHELIOMA AND TERMINAL HEALTH 
                   CLAIMS.

       (a) In General.--Notwithstanding section 106(f)(2) or any 
     other provision of this Act, each person who has filed a 
     mesothelioma or terminal health claim before the date of 
     enactment of this Act may continue their mesothelioma or 
     terminal health claim in the court where the case was pending 
     on the date of enactment of this Act. For mesothelioma or 
     terminal health claims filed after the date of enactment of 
     this Act and before the Administrator certifies to Congress 
     that the Fund is operational and paying valid claims at a 
     reasonable rate, by claimants who do not elect to seek an 
     offer of judgment under subparagraph (A), the pending claim 
     is not stayed and such claimants may continue their 
     mesothelioma or terminal health claims where the case is 
     filed.
                                 ______
                                 
  SA 2808. Mr. SALAZAR submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 41, between lines 7 and 8, insert the following:
       (e) Veterans and Defense Employee Health Claims.--
       (1) In general.--The Administrator shall develop procedures 
     to provide for an expedited process to categorize, evaluate, 
     and pay veterans and defense employee health claims. Such 
     procedures shall include, pending promulgation of final 
     regulations, adoption of interim regulations as needed for 
     processing of veterans and defense employee health claims.
       (2) Eligible veterans health claims.--
       (A) In general.--A claim shall qualify for treatment as a 
     veterans and defense employee health claim if the claimant--
       (i) is living;
       (ii) provides a diagnosis of an asbestos-related disease or 
     condition meeting the requirements of section 121;
       (iii) contracted such asbestos-related disease or condition 
     during the claimant's service--

       (I) in the Armed Forces of the United States;
       (II) as an employee of the Department of Defense; or
       (III) as an employee performing official duties relating to 
     national defense matters; and

       (iv) has not received compensation from the Fund for the 
     disease or condition for which the claim was filed.
       (B) Definition.--In this paragraph, the term ``employee'' 
     has the same meaning as in section 2105 of title 5, United 
     States Code.
       (3) Additional health claims.--The Administrator may, in 
     final regulations promulgated under section 101(c), designate 
     additional categories of claims that qualify as veterans and 
     defense employee health claims under this subsection.
       (4) Claims facility.--To facilitate the prompt payment of 
     veterans and defense employee health claim, the Administrator 
     shall contract with a claims facility, which applying the 
     medical criteria of section 121, may enter into settlements 
     with claimants. The processing and payment of any such claims 
     shall be subject to regulations promulgated under this Act.
       (5) Authorization for contracts with claims facilities.--
     The Administrator may enter into contracts with a claims 
     facility for the processing of claims (except for exceptional 
     medical claims) in accordance with this title.
       (6) Rules of construction.--
       (A) No right under veterans' benefit program.--Nothing in 
     this subsection shall be construed to provide any claimant 
     with any claim, right, or cause of action for benefits under 
     a veterans' benefit program.
       (B) Collateral source compensation.--In no case shall 
     amounts or benefits received by a claimant under this 
     subsection be deemed as collateral source compensation under 
     this Act.
       On page 41, line 8, strike ``(e)'' and insert ``(f)''.
       On page 52, line 12, strike ``(f)'' and insert ``(g)''.
       On page 318, line 5, strike ``(f)'' and insert ``(g)''.
       On page 321, line 14, strike ``(f)'' and insert ``(g)''.
       On page 322, line 24, strike ``(f)'' and insert ``(g)''.
       On page 325, line 18, strike ``(f)'' and insert ``(g)''.
                                 ______
                                 
  SA 2809. Mr. SALAZAR submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 41, between lines 7 and 8, insert the following:
       (e) Veterans and Defense Employee Health Claims.--
       (1) In general.--The Administrator shall develop procedures 
     to provide for an expedited process to categorize, evaluate, 
     and pay veterans and defense employee health claims. Such 
     procedures shall include, pending promulgation of final 
     regulations, adoption of interim regulations as needed for 
     processing of veterans and defense employee health claims.
       (2) Eligible veterans health claims.--
       (A) In general.--A claim shall qualify for treatment as a 
     veterans and defense employee health claim if the claimant--

[[Page S1265]]

       (i) is living;
       (ii) provides a diagnosis of an asbestos-related disease or 
     condition meeting the requirements of section 121;
       (iii) contracted such asbestos-related disease or condition 
     during the claimant's service--

       (I) in the Armed Forces of the United States;
       (II) as an employee of the Department of Defense; or
       (III) as an employee performing official duties relating to 
     national defense matters; and

       (iv) has not received compensation from the Fund for the 
     disease or condition for which the claim was filed.
       (B) Definition.--In this paragraph, the term ``employee'' 
     has the same meaning as in section 2105 of title 5, United 
     States Code.
       (3) Additional health claims.--The Administrator may, in 
     final regulations promulgated under section 101(c), designate 
     additional categories of claims that qualify as veterans and 
     defense employee health claims under this subsection.
       (4) Claims facility.--To facilitate the prompt payment of 
     veterans and defense employee health claim, the Administrator 
     shall contract with a claims facility, which applying the 
     medical criteria of section 121, may enter into settlements 
     with claimants. The processing and payment of any such claims 
     shall be subject to regulations promulgated under this Act.
       (5) Authorization for contracts with claims facilities.--
     The Administrator may enter into contracts with a claims 
     facility for the processing of claims (except for exceptional 
     medical claims) in accordance with this title.
       (6) Rules of construction.--
       (A) No right under veterans' benefit program.--Nothing in 
     this subsection shall be construed to provide any claimant 
     with any claim, right, or cause of action for benefits under 
     a veterans' benefit program.
       (B) Collateral source compensation.--In no case shall 
     amounts or benefits received by a claimant under this 
     subsection be deemed as collateral source compensation under 
     this Act.
       On page 41, line 8, strike ``(e)'' and insert ``(f)''.
       On page 52, line 12, strike ``(f)'' and insert ``(g)''.
       On page 318, line 5, strike ``(f)'' and insert ``(g)''.
       On page 321, line 14, strike ``(f)'' and insert ``(g)''.
       On page 322, line 24, strike ``(f)'' and insert ``(g)''.
       On page 325, line 18, strike ``(f)'' and insert ``(g)''.
                                 ______
                                 
  SA 2810. Mr. KENNEDY submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 315, line 10, strike ``personal injury claim'' and 
     insert ``civil action in Federal or State court seeking 
     damages for personal injury''.
       On page 315, line 25 and page 316, line 1, strike ``a 
     functional impairment'' and insert ``from a disease or 
     condition''.
       On page 316, line 5, strike ``functional impairment'' and 
     insert ``disease or condition''.
       On page 316, line 7, strike ``(2) .'' and insert ``(2).''.
       On page 316, line 18, strike ``Claims'' and insert ``Civil 
     actions seeking damages for personal injury''.
       On page 316, line 14, strike ``initial pleading'' and 
     insert ``complaint''.
       On page 316, line 18, strike the comma and insert a 
     parenthesis.
       On page 316, line 8, strike ``plead with'' and all that 
     follows through ``shall'' on line 20.
       On page 316, line 20, strike ``the information'' and all 
     that follows through the end of page 317, line 2.
       On page 317, line 4, strike ``report,'' and insert 
     ``report, and''.
       On page 317, line 5, strike ``and such other evidence''.
       On page 318, between lines 2 and 3, insert the following:
       (4) Dual injury.--If an exposed person has both a silica 
     disease or conditions resulting from exposure to silica and a 
     disease or condition resulting from exposure to asbestos, any 
     damages awarded for a claim that meets the requirements of 
     paragraph (2)(A)--
       (A) shall be limited to damages attributable to the exposed 
     person's exposure to silica; and
       (B) shall not include damages attributable to the exposed 
     person's exposure to asbestos.
                                 ______
                                 
  SA 2811. Mr. KENNEDY submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 135, between lines 12 and 13, insert the following:
       (c) Reimbursement for Reasonable Medical Expenses.--In 
     addition to the award under subsection (b), an asbestos 
     claimant with a claim for malignant Level IX shall receive 
     reimbursement for reasonable medical expenses recommended by 
     a qualified physician. The Administrator shall promulgate 
     regulations governing the reimbursement of medical expenses 
     under this subsection.
                                 ______
                                 
  SA 2812. Mr. KENNEDY submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 392, after line 5, insert the following:

     SEC. 503. CONTINUANCE OF TERMINAL HEALTH CLAIMS.

       (a) In General.--Nothwithstanding section 106(f)(2) or any 
     other provision of this Act, any individual who has filed a 
     terminal health claim before the date of enactment of this 
     Act may continue that terminal health claim in the court 
     where the case was pending on the date of enactment of this 
     Act. For terminal health claims filed after the date of 
     enactment of this Act and before the Administrator certifies 
     to Congress that the Fund is operational and paying valid 
     claims at a reasonable rate, by claimants who do not elect to 
     seek an offer of judgment under subparagraph (A), the pending 
     claim is not stayed and such claimants may continue the 
     terminal health claims where the case is filed.
                                 ______
                                 
  SA 2813. Mr. KENNEDY submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 52, line 15, insert ``an exigent health claim to 
     which section 106(f)(2) applies or'' after ``than''.
       On page 52, line 16, insert ``or an exigent health claim'' 
     after ``applies''.
       On page 53, line 22, strike all through line 25.
       On page 60, lines 3 and 4, strike ``before the stay being 
     lifted under subparagraph (B)''.
       On page 64, lines 8 through 10, strike ``before the stay 
     being lifted under subparagraph (B)''.
       On page 64, line 16, beginning with ``Fund'' strike all 
     through ``the'' on line 18, and insert ``Fund. The''.
       On page 64, line 24, strike all through page 65, line 11, 
     and insert the following:
       (B) Continuance of claims.--Each person who has filed an 
     exigent health claim before the date of enactment of this Act 
     may continue their exigent health claim in the court where 
     the case was pending on the date of enactment of this Act. 
     For exigent health claims filed after the date of enactment 
     of this Act and before the Administrator certifies to 
     Congress that the Fund is operational and paying valid claims 
     at a reasonable rate, by claimants who do not elect to seek 
     an offer of judgment under subparagraph (A), the pending 
     claim is not stayed and such claimants may continue their 
     exigent health claims where the case is filed.
                                 ______
                                 
  SA 2814. Mr. KENNEDY submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 73, line 7, strike ``IX'' and insert ``X''.
       On page 78, line 23, strike ``or''.
       On page 78, line 24, insert after the comma ``or Malignant 
     Level IX''.
       On page 88, line 8, strike ``or Malignant Level VIII'' and 
     insert ``Malignant Level VIII, or Malignant Level IX''.
       On page 89, line 18, strike ``VII or VIII'' and insert 
     ``Level VIII, or Level IX''.
       On page 90, line 1, strike ``VII or VIII'' and insert 
     ``Level VIII, or Level IX''
       On page 98, line 17, strike ``IX'' and insert ``X''.
       On page 99, line 3, strike ``IX'' and insert ``X''.
       On page 102, line 2, strike ``IX'' and insert ``X''.
       On page 111, between lines 2 and 3, insert the following:
       (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

[[Page S1266]]

     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.
       On page 111, strike lines 3 and 4, and insert the 
     following:
       (8) Malignant level viii.--
       (A) In general.--To receive Level VIII
       On page 112, line 2, strike ``Level VII'' and insert 
     ``Level VIII''.
       On page 112, strike lines 15 and 16, and insert the 
     following:
       (9) Malignant level ix.--
       (A) In general.--To receive Level IX
       On page 114, line 13, strike ``Level VIII'' and insert 
     ``Level IX''.
       On page 115, strike lines 1 and 2, and insert the 
     following:
       (10) Malignant level x.--To receive Level X compensation, a 
     claimant shall provide--
       On page 126, beginning with the matter following line 20, 
     strike all through the matter on page 127 before line 1 and 
     insert the following:

       LevScheduled Condition or Disease  Scheduled Value
      I   Asbestosis/Pleural Disease A..  Medical Monitoring
     II   Mixed Disease With Impairment.  $32,000
    III   Asbestosis/Pleural Disease B..  $100,000
     IV   Severe Asbestosis.............  $400,000
      V   Disabling Asbestosis..........  $850,000
     VI   Other Cancer..................  $200,000
    VII   Lung Cancer One...............  individual evaluation;
                                          smokers, $75,000;
                                          ex-smokers, $200,000;
                                          non-smokers, $625,000
   VIII   Lung Cancer With Pleural        smokers, $300,000;
           Disease.                       ex-smokers, $725,000;
                                          non-smokers, $800,000
     IX   Lung Cancer With Asbestosis...  smokers, $600,000;
                                          ex-smokers, $975,000;
                                          non-smokers, $1,100,000
      X   Mesothelioma..................  $1,100,000
 

       On page 127, line 13, strike ``IX'' and insert ``X''.
       On page 127, line 18, strike ``IX'' and insert ``X''.
       On page 128, line 1, strike ``IX'' and insert ``X''.
       On page 128, line 3, strike ``IX'' and insert ``X''.
       On page 141, line 26, strike ``IX'' and insert ``X''.
       On page 250, line 10, strike ``IX'' and insert ``X''.
       On page 250, line 14, strike ``VIII'' and insert ``IX''.
       On page 361, line 24, strike ``VIII'' and insert ``IX''.
                                 ______
                                 
  SA 2815. Mr. KENNEDY submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 52, line 16, insert ``or (3)'' after ``section 
     403(d)(2)''.
       On page 321, line 14, strike ``paragraph (2),'' and insert 
     ``paragraphs (2) and (3),''.
       On page 322, between lines 14 and 15, insert the following:
       (3) Asbestos claims by certain lung cancer victims.--This 
     Act shall not apply to any asbestos claim brought by a person 
     with lung cancer who had substantial exposure to asbestos but 
     is not eligible for compensation from the Fund. 
     Notwithstanding any other provision of this Act, a civil 
     action for such asbestos claims may be pursued in Federal or 
     State court alleging that asbestos exposure was a cause of 
     the lung cancer.
                                 ______
                                 
  SA 2816. Mr. KENNEDY submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 41, line 21, strike ``substantial''.
       On page 72, line 22, strike ``substantial''.
       On page 105, line 23, strike ``substantial''.
       On page 107, line 2, strike ``substantial''.
       On page 108, line 2, strike ``substantial''.
       On page 109, line 9, strike ``substantial''.
       On page 110, line 6, strike ``substantial''.
       On page 110, lines 12 and 13, strike ``substantial''.
       On page 111, line 23, strike ``substantial''.
       On page 114, line 8, strike ``substantial''.
       On page 116, line 15, strike ``substantial''.
       On page 116, line 18, strike ``substantial''.
       On page 123, lines 6 and 7, strike ``substantial''.
       On page 316, line 4, strike ``substantial''.
       On page 347, line 3, strike ``substantial''.
       On page 349, line 12, strike ``substantial''.
       On page 349, lines 17 and 18, strike ``substantial''.
       On page 349, lines 22 and 23, strike ``substantial''.
       On page 350, lines 2 and 3, strike ``substantial''.
       On page 350, line 9, strike ``substantial''.
       On page 350, line 13, strike ``substantial''.
       On page 350, line 18, strike ``substantial''.
       On page 350, line 21, strike ``substantial''.
                                 ______
                                 
  SA 2817. Mr. KENNEDY submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 132, between lines 7 and 8, insert the following:
       (c) Reimbursement for Reasonable Medical Expenses.--In 
     addition to the award under subsection (b), an asbestos 
     claimant with a claim for malignant Level IX shall receive 
     reimbursement for reasonable medical expenses recommended by 
     a qualified physician. The Administrator shall promulgate 
     regulations governing the reimbursement of medical expenses 
     under this subsection.
                                 ______
                                 
  SA 2818. Mr. KENNEDY submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 321, strike line 6 and all that follows through 
     page 322, line 13, and insert the following:
       (1) In general.--Except as provided under paragraphs (2) 
     and (3) and section 106(f) of this Act and section 524(j)(3) 
     of title 11, United States Code, as amended by this Act, the 
     remedies provided under this Act shall be the exclusive 
     remedy for any asbestos claim, including any claim described 
     in subsection (e)(2), under any Federal or State law.
       (2) Civil actions at trial.--
       (A) In general.--This Act shall not apply to any asbestos 
     claim that--
       (i) is a civil action filed in a Federal or State court 
     (not including a filing in a bankruptcy court);
       (ii) is not part of a consolidation of actions or a class 
     action; and
       (iii) on the date of enactment of this Act--

       (I) in the case of a civil action which includes a jury 
     trial, is before the jury after its impaneling and 
     commencement of presentation of evidence, but before its 
     deliberations;
       (II) in the case of a civil action which includes a trial 
     in which a judge is the trier of fact, is at the presentation 
     of evidence at trial; or
       (III) with respect to which a verdict, final order, or 
     final judgment has been entered by a trial court.

       (B) Nonapplicability.--This Act shall not apply to a civil 
     action described under subparagraph (A) throughout the final 
     disposition of the action.
       (3) Asbestos claims by certain lung cancer victims.--
       (A) In general.--This Act shall not apply to any asbestos 
     claim brought by a person with lung cancer who had 
     substantial exposure to asbestos but is not eligible for 
     compensation from the Fund. Notwithstanding any other 
     provision of this Act, a civil action for such asbestos 
     claims may be pursued in Federal or State court alleging that 
     asbestos exposure was a cause of the lung cancer.
       (B) Relation to stays.--Notwithstanding any other provision 
     of this Act, section 106(f)(1) shall not apply to a claim 
     described in subparagraph (A).
                                 ______
                                 
  SA 2819. Mr. KENNEDY submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 315, strike line 1 and all that follows through 
     page 318, line 2, and insert the following:

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

       (a) Effect on Federal and State Law.--The provisions of 
     this Act shall supersede any Federal or State law insofar as 
     such law may relate to any asbestos claim, including any 
     claim described under subsection (e)(2).
       (b) Effect on Silica Claims.--
       (1) In general.--
       (A) Rule of construction.--Nothing in this Act shall be 
     construed to preempt, bar, or otherwise preclude any civil 
     action in Federal or State court seeking damages for personal 
     injury attributable to exposure to silica as to which the 
     plaintiff--
       (i) pleads with particularity and establishes by a 
     preponderance of evidence either that--

       (I) no claim has been asserted or filed by or with respect 
     to the exposed person in any forum for any asbestos-related 
     condition and

[[Page S1267]]

     the exposed person (or another claiming on behalf of or 
     through the exposed person) is not eligible for any monetary 
     award under this Act; or
       (II)(aa) the exposed person suffers or has suffered from a 
     disease or condition that was caused by exposure to silica; 
     and
       (bb) asbestos exposure was not a substantial contributing 
     factor to such disease or condition; and

       (ii) satisfies the requirements of paragraph (2).
       (B) Preemption.--Civil actions seeking damages for personal 
     injury attributable to exposure to silica that fail to meet 
     the requirements of subparagraph (A) shall be preempted by 
     this Act.
       (2) Required evidence.--In any claim to which paragraph (1) 
     applies, the complaint (or, for claims pending on the date of 
     enactment of this Act, an amended pleading to be filed within 
     60 days after such date, but not later than 60 days before 
     trial) shall be accompanied by--
       (A) admissible evidence, including at a minimum, a B-
     reader's report, and the underlying x-ray film showing that 
     the claim may be maintained and is not preempted under 
     paragraph (1);
       (B) notice of any previous lawsuit or claim for benefits in 
     which the exposed person, or another claiming on behalf of or 
     through the injured person, asserted an injury or disability 
     based wholly or in part on exposure to asbestos;
       (C) if known by the plaintiff after reasonable inquiry by 
     the plaintiff or his representative, the history of the 
     exposed person's exposure, if any, to asbestos; and
       (D) copies of all medical and laboratory reports pertaining 
     to the exposed person that refer to asbestos or asbestos 
     exposure.
       (3) Statute of limitations.--In general, the statute of 
     limitations for a silica claim shall be governed by 
     applicable State law, except that in any case under this 
     subsection, the statute of limitations shall only start to 
     run when the plaintiff becomes impaired.
       (4) Dual injury.--If an exposed person has both a silica 
     disease or conditions resulting from exposure to silica and a 
     disease or condition resulting from exposure to asbestos, any 
     damages awarded for a claim that meets the requirements of 
     paragraph (2)--
       (A) shall be limited to damages attributable to the exposed 
     person's exposure to silica; and
       (B) shall not include damages attributable to the exposed 
     person's exposure to asbestos.
                                 ______
                                 
  SA 2820. Mr. KENNEDY submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 130, add after line 21 the following:

          Subtitle E--Controlling Level and Awards Provisions

     SEC. 141. LEVEL AND AWARDS PROVISIONS.

       (a) References to Levels.--Notwithstanding any other 
     provision of this Act, any reference to Level VII, VIII, or 
     IX in this Act (other than this subtitle) shall be deemed a 
     reference to Level VIII, IX, or X, respectively, as provided 
     under this subtitle.
       (b) Malignant Level VII.--
       (1) In general.--Notwithstanding any other provision of 
     this Act, to receive Level VII compensation a claimant shall 
     provide--
       (A) a diagnosis of a primary lung cancer disease on the 
     basis of findings by a board certified pathologist;
       (B) evidence of 15 or more weighted years of substantial 
     occupational exposure to asbestos; and
       (C) supporting medical documentation establishing asbestos 
     exposure as a contributing factor in causing the lung cancer 
     in question.
       (2) Physicians panel.--Notwithstanding any other provision 
     of this Act, 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.
       (c) Awards.--Notwithstanding section 131 of this Act (or 
     any other provision of this Act) the benefits table under 
     subsection (b)(1) of that section shall be administered as 
     follows:

 
                                Level                                Scheduled condition or disease                                        Scheduled value
 
                ....................................  ............................................................
                  I                                   Asbestosis/Pleural Disease A                                  Medical Monitoring
                  II                                  Mixed Disease With Impairment                                 $32,000
                  III                                 Asbestosis/Pleural Disease B                                  $100,000
                  IV                                  Severe Asbestosis                                             $400,000
                  V                                   Disabling Asbestosis                                          $850,000
                  VI                                  Other Cancer                                                  $200,000
                  VII                                 Lung Cancer One                                               individual evaluation; smokers, $75,000; ex-smokers,
                                                                                                                     $200,000; non-smokers, $625,000
                  VIII                                Lung Cancer With Pleural Disease                              smokers, $300,000; ex-smokers, $725,000; non-smokers,
                                                                                                                     $800,000
                  IX                                  Lung Cancer With Asbestosis                                   smokers, $600,000; ex-smokers, $975,000; non-smokers,
                                                                                                                     $1,100,000
                  X                                   Mesothelioma                                                  $1,100,000
 

                                 ______
                                 
  SA 2821. Mr. KENNEDY submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 392, after line 5, insert the following:

     SEC. 503. CONTINUANCE OF TERMINAL HEALTH CLAIMS.

       Nothwithstanding section 106(f)(2) or any other provision 
     of this Act, any individual who has filed a terminal health 
     claim before the date of enactment of this Act may continue 
     that terminal health claim in the court where the case was 
     pending on the date of enactment of this Act. For terminal 
     health claims filed after the date of enactment of this Act 
     and before the Administrator certifies to Congress that the 
     Fund is operational and paying valid claims at a reasonable 
     rate, by claimants who do not elect to seek an offer of 
     judgment under section 106(f)(2), the pending claim is not 
     stayed and such claimants may continue the terminal health 
     claims where the case is filed.
                                 ______
                                 
  SA 2822. Mr. KENNEDY submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 392, after line 5, insert the following:

     SEC. 503. EXPOSURE PRESUMPTIONS.

       Notwithstanding any other provision of this Act, any 
     asbestos exposure that is a contributing factor in causing an 
     asbestos-related disease, condition, or illness shall meet 
     the exposure requirements for this Act.

[[Page S1268]]

                                 ______
                                 
  SA 2823. Mr. DAYTON submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 98, strike lines 6 through 17, and insert the 
     following:
       (4) Waiver for workers and residents of vermiculite mining 
     and processing communities.--
       (A) In general.--Because of the nature of asbestos exposure 
     related to the vermiculite mining operations in Libby, 
     Montana, and the vermiculite processing operations associated 
     with such mining operations, the Administrator shall waive 
     the exposure requirements under this subtitle for individuals 
     who worked--
       (i) at the vermiculite mining operations in Libby, Montana, 
     or lived or worked within a 20-mile radius of such mining 
     operations, for at least 12 months before December 31, 2004; 
     and
       (ii) at sites processing vermiculite mined from mining 
     operations in Libby, Montana; or
       (iii) or lived within a 20 mile radius of a processing site 
     described in clause (ii), for at least 12 months before 
     December 31, 2004.
       (B) Required documentation.--Claimants under this paragraph 
     shall provide such supporting documentation as the 
     Administrator shall require.
       On page 118, strike line 6 and all that follows through 
     page 120, line 4, and insert the following:
       (8) Vermiculite mining and processing claimants.--
       (A) In general.--A vermiculite mining and processing 
     claimant, as described under subsection (c)(4), may elect to 
     have the claimant's claim designated as an exceptional 
     medical claim and referred to a Physicians Panel for review. 
     In reviewing the medical evidence submitted by such a 
     claimant in support of that claim, the Physicians Panel shall 
     take into consideration the unique and serious nature of 
     asbestos exposure in vermiculite mining and processing 
     operations, including the nature of the pleural disease 
     related to asbestos exposure from such sites.
       (B) Claims.--For all claims for Levels II through IV filed 
     by vermiculite mining and processing claimants, as described 
     under subsection (c)(4), once the Administrator or the 
     Physicians Panel issues a certificate of medical eligibility 
     to such claimant, and notwithstanding the disease category 
     designated in the certificate or the eligible disease or 
     condition established in accordance with this section, or the 
     value of the award determined in accordance with section 114, 
     such claimant shall be entitled to an award that is not less 
     than that awarded to claimants who suffer from asbestosis, 
     Level IV. For all malignant claims filed by vermiculite 
     mining and processing claimants, such claimant shall be 
     entitled to an award that corresponds to the malignant 
     disease category designated by the Administrator or the 
     Physicians Panel.
       On page 366, strike lines 2 through 8, and insert the 
     following:
       (a) Vermiculite Mining and Processing 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 
     vermiculite mining and processing communities, as described 
     under section 121(c)(4). The payment of any such medical 
     expenses shall not be collateral source compensation as 
     defined under section 134(a).
       On page 120, strike line 5 and all that follows through 
     page 122, line 13.
                                 ______
                                 
  SA 2824. Mr. KOHL submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 392, after line 5, add the following:

                      TITLE VI--PROTECTIVE ORDERS

     SEC. 601. SHORT TITLE.

       This title may be cited as the ``Sunshine in Litigation Act 
     of 2006''.

     SEC. 602. RESTRICTIONS ON PROTECTIVE ORDERS AND SEALING OF 
                   CASES AND SETTLEMENTS.

       (a) In General.--Chapter 111 of title 28, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 1660. Restrictions on protective orders and sealing of 
       cases and settlements

       ``(a) Orders Restricting Disclosure of Information.--
       ``(1) In general.--A court shall not enter an order under 
     rule 26(c) of the Federal Rules of Civil Procedure 
     restricting the disclosure of information obtained through 
     discovery, an order approving a settlement agreement that 
     would restrict the disclosure of such information, or an 
     order restricting access to court records in a civil case 
     unless the court finds--
       ``(A) that such order would not restrict the disclosure of 
     information which is relevant to the protection of public 
     health or safety; or
       ``(B) that--
       ``(i) the public interest in the disclosure of potential 
     health or safety hazards is outweighed by a specific and 
     substantial interest in maintaining the confidentiality of 
     the information or records in question; and
       ``(ii) the requested protective order is no broader than 
     necessary to protect the privacy interest asserted.
       ``(2) Period of effect.--No order entered under paragraph 
     (1), other than an order approving a settlement agreement, 
     shall continue in effect after the entry of final judgment, 
     unless at the time of, or after, such entry the court finds 
     that the requirements of paragraph (1) have been met.
       ``(3) Burden of proof.--The party who is the proponent for 
     the entry of an order under paragraph (1) shall have the 
     burden of proof in obtaining such an order.
       ``(4) Not waivable.--This section shall apply if an order 
     under paragraph (1) is requested--
       ``(A) by motion pursuant to rule 26(c) of the Federal Rules 
     of Civil Procedure; or
       ``(B) by application pursuant to the stipulation of the 
     parties.
       ``(5) Effect on discovery.--
       ``(A) In general.--The provisions of this section shall not 
     constitute grounds for the withholding of information in 
     discovery that is otherwise discoverable under rule 26 of the 
     Federal Rules of Civil Procedure.
       ``(B) Limit on requests.--No party shall request, as a 
     condition for the production of discovery, that another party 
     stipulate to an order that would violate this section.
       ``(b) Disclosure to Government Agencies.--
       ``(1) In general.--A court shall not approve or enforce any 
     provision of an agreement between or among parties to a civil 
     action, or approve or enforce an order under subsection 
     (a)(1), that prohibits or otherwise restricts a party from 
     disclosing any information relevant to such civil action to 
     any Federal or State agency with authority to enforce laws 
     regulating an activity relating to such information.
       ``(2) Scope of confidentiality.--Any such information 
     disclosed to a Federal or State agency shall be confidential 
     to the extent provided by law.
       ``(c) Settlements.--
       ``(1) In general.--Except as provided in paragraph (2), a 
     court shall not enforce any provision of a settlement 
     agreement between or among parties that prohibits 1 or more 
     parties from--
       ``(A) disclosing that a settlement was reached or the terms 
     of such settlement, other than the amount of money paid; or
       ``(B) discussing a case, or evidence produced in the case, 
     that involves matters related to public health or safety.
       ``(2) Exception.--Paragraph (1) shall not apply if the 
     court finds that the public interest in the disclosure of 
     potential health or safety hazards is outweighed by a 
     specific and substantial interest in maintaining the 
     confidentiality of the information.''.
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 111 of title 28, United States Code, is 
     amended by adding after the item relating to section 1659 the 
     following:

``1660. Restrictions on protective orders and sealing of cases and 
              settlements.''.

     SEC. 603. EFFECTIVE DATE.

       The amendments made by this title shall--
       (1) take effect 30 days after the date of enactment of this 
     Act; and
       (2) apply only to orders entered in civil actions or 
     agreements entered into on or after the date described in 
     paragraph (1).
                                 ______
                                 
  SA 2825. Mr. SALAZAR submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 392, after line 5, insert the following:

     SEC. 503. VETERANS AND DEFENSE EMPLOYEE HEALTH CLAIMS.

       (a) In General.--The Administrator shall develop procedures 
     to provide for an expedited process to categorize, evaluate, 
     and pay veterans and defense employee health claims. Such 
     procedures shall include, pending promulgation of final 
     regulations, adoption of interim regulations as needed for 
     processing of veterans and defense employee health claims.
       (b) Eligible Veterans Health Claims.--
       (1) In general.--A claim shall qualify for treatment as a 
     veterans and defense employee health claim if the claimant--
       (A) is living;
       (B) provides a diagnosis of an asbestos-related disease or 
     condition meeting the requirements of section 121;
       (C) contracted such asbestos-related disease or condition 
     during the claimant's service--
       (i) in the Armed Forces of the United States;
       (ii) as an employee of the Department of Defense; or
       (iii) as an employee performing official duties relating to 
     national defense matters; and

[[Page S1269]]

       (D) has not received compensation from the Fund for the 
     disease or condition for which the claim was filed.
       (2) Definition.--In this paragraph, the term ``employee'' 
     has the same meaning as in section 2105 of title 5, United 
     States Code.
       (c) Additional Health Claims.--The Administrator may, in 
     final regulations promulgated under section 101(c), designate 
     additional categories of claims that qualify as veterans and 
     defense employee health claims under this subsection.
       (d) Claims Facility.--To facilitate the prompt payment of 
     veterans and defense employee health claim, the Administrator 
     shall contract with a claims facility, which applying the 
     medical criteria of section 121, may enter into settlements 
     with claimants. The processing and payment of any such claims 
     shall be subject to regulations promulgated under this Act.
       (e) Authorization for Contracts With Claims Facilities.--
     The Administrator may enter into contracts with a claims 
     facility for the processing of claims (except for exceptional 
     medical claims) in accordance with this title.
       (f) Rules of Construction.--
       (1) No right under veterans' benefit program.--Nothing in 
     this subsection shall be construed to provide any claimant 
     with any claim, right, or cause of action for benefits under 
     a veterans' benefit program.
       (2) Collateral source compensation.--In no case shall 
     amounts or benefits received by a claimant under this 
     subsection be deemed as collateral source compensation under 
     this Act.
                                 ______
                                 
  SA 2826. Mr. LEVIN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 39, between lines 3 and 4, insert the following:
       (C) Claims from former civil actions.--
       (i) In general.--The Administrator may, in instances where 
     the attorney or attorneys for the plaintiffs in a pending 
     tort case have spent such a substantial amount of time and 
     resources prior to April 19, 2005 that a 5% attorney fee 
     limitation would be manifestly unfair, increase the attorney 
     limitation fee.
                                 ______
                                 
  SA 2827. Mr. LEVIN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       At the appropriate place, insert the following:

     If the consolidation of the existing asbestos trust funds 
     into this trust fund is ruled unconstitutional by a final 
     ruling of the U.S. Supreme Court, this bill shall be non-
     severable, unless Congress acts within six months to strike 
     this provision.
                                 ______
                                 
  SA 2828. Mrs. BOXER submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 85, after line 23, insert the following:

     SEC. 116. OPT OUT PROVISION FOR CLAIMANTS AGAINST 
                   NONPARTICIPANT ENTITIES.

       (a) Definition.--In this section, the term ``covered 
     claimant '' means any person who--
       (1) may have contracted an asbestos-related disease or 
     condition; and
       (2) has filed, or is eligible to file, an asbestos claim 
     under section 113 with the Fund; and
       (3) except for the provisions of this Act, could file a 
     civil action on that asbestos claim against any entity that 
     is not a participant as defined under section 3.
       (b) Election.--Any covered claimant may--
       (1) file an election with the Adminstrator to--
       (A) withdraw the claim with the Fund; or
       (B) provide notice to pursue the claim in a civil action 
     instead of under title I; and
       (2) file a civil action on that asbestos claim in an 
     appropriate Federal or State court.
                                 ______
                                 
  SA 2829. Mrs. BOXER submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 85, after line 23, insert the following:

     SEC. 116. OPT OUT PROVISION FOR NATURALLY OCCURRING ASBESTOS 
                   CLAIMANTS.

       (a) Definition.--In this section, the term ``naturally 
     occurring asbestos claimant '' means any person who--
       (1) may have contracted an asbestos-related disease or 
     condition caused by exposure to naturally occurring asbestos; 
     and
       (2) has filed, or is eligible to file, an asbestos claim 
     under section 113 with the Fund; and
       (3) except for the provisions of this Act, could file a 
     civil action on that asbestos claim against any entity that 
     is not a participant as defined under section 3.
       (b) Election.--Any naturally occurring asbestos claimant 
     may--
       (1) file an election with the Adminstrator to--
       (A) withdraw the claim with the Fund; or
       (B) provide notice to pursue the claim in a civil action 
     instead of under title I; and
       (2) file a civil action on that asbestos claim in an 
     appropriate Federal or State court.
                                 ______
                                 
  SA 2830. Mrs. BOXER submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 392, after line 5, insert the following:

     SEC. 503. WAIVER FOR WORKERS AND RESIDENTS OF VERMICULITE 
                   PROCESSING SITES AND COMMUNITIES.

       (a) In General.--Because of the unique nature of asbestos 
     exposure related to the processing operations of vermiculite 
     ore, the Administrator shall waive the exposure requirements 
     under subtitle II for an individual who worked at a 
     vermiculite processing site in the State of California, or 
     lived or worked within a 20 mile radius of such processing 
     site, for at least 12 consecutive months before December 31, 
     2005. Claimants under this paragraph shall provide such 
     supporting documentation, as the Administrator shall require.
       (b) Vermiculite Processing Sites.--The claims procedures 
     described under section 121(g)(8) relating to Libby, Montana 
     claimants shall apply to any eligible claimant who worked at 
     a vermiculite processing site in the State of California, or 
     lived or worked within a 20 mile radius of such processing 
     site, as described under subsection (a), and where such 
     processing site has been identified by a Federal or State 
     agency as having received or processed vermiculite ore from 
     Libby, Montana.
       (c) Vermiculite Processing Site Claimants.--
       (1) In general.--Nothing is this Act shall preclude the 
     formation of a future fund for the payment of eligible 
     medical expenses related to treating asbestos-related disease 
     for individuals who worked at a vermiculite processing site 
     in the State of California, or lived or worked within a 20 
     mile radius of such processing site, as described under 
     subsection (a).
       (2) Collateral source compensation exception.--The payment 
     of any medical expense under paragraph (1) shall not be 
     collateral source compensations as defined under section 
     134(a).
                                 ______
                                 
  SA 2831. Mrs. BOXER submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 392, after line 5, insert the following:

     SEC. 503. WAIVER FOR WORKERS AND RESIDENTS OF VERMICULITE 
                   PROCESSING SITES AND COMMUNITIES.

       (a) In General.--Because of the unique nature of asbestos 
     exposure related to the processing operations of vermiculite 
     ore, the Administrator shall waive the exposure requirements 
     under subtitle II for an individual who worked at a site 
     processing vermiculite mined from mining operations in Libby, 
     Montana, or lived or worked within a 20 mile radius of such 
     processing site, for at least 12 consecutive months before 
     December 31, 2005. Claimants under this paragraph shall 
     provide such supporting documentation, as the Administrator 
     shall require.
       (b) Vermiculite Processing Sites.--The claims procedures 
     described under section 121(g)(8) relating to Libby, Montana 
     claimants shall apply to any eligible claimant who worked at 
     a site processing vermiculite mined from mining operations in 
     Libby, Montana, or lived or worked within a 20 mile radius of 
     such processing site, as described under subsection (a), and 
     where such processing site has been identified by a Federal 
     or State agency as having received or processed vermiculite 
     ore from Libby, Montana.
       (c) Vermiculite Processing Site Claimants.--
       (1) In general.--Nothing is this Act shall preclude the 
     formation of a future fund for the payment of eligible 
     medical expenses related to treating asbestos-related disease 
     for

[[Page S1270]]

     individuals who worked at a site processing vermiculite mined 
     from mining operations in Libby, Montana, or lived or worked 
     within a 20 mile radius of such processing site, as described 
     under subsection (a).
       (2) Collateral source compensation exception.--The payment 
     of any medical expense under paragraph (1) shall not be 
     collateral source compensations as defined under section 
     134(a).
                                 ______
                                 
  SA 2832. Mrs. BOXER submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 392, after line 5, insert the following:

     SEC. 503. WAIVER FOR WORKERS AND RESIDENTS OF MINING AND 
                   MILLING OPERATIONS AND COMMUNITIES.

       (a) In General.--Because of the unique nature of asbestos 
     exposure related to the asbestos mining and milling 
     operations in the areas of Coalinga, New Idria, and King 
     City, in the State of California, the Administrator shall 
     waive the exposure requirements under this subtitle for an 
     individual who worked at such a mining or milling operation, 
     or lived or worked within a 20 mile radius of such an 
     operation, for at least 12 consecutive months before December 
     31, 2005. Claimants under this paragraph shall provide such 
     supporting documentation, as the Administrator shall require.
       (b) Miscellaneous.--Notwithstanding section (2)(a)(9), the 
     Congress finds that among the communities hardest hit by this 
     crisis have been those in or near the locations where 
     asbestos fiber was mined and milled, where for years the air 
     and ground was contaminated and residents, as well as mine 
     and mill workers, were exposed, and where citizens continue 
     to be taking ill even though mining operations ceased years 
     ago.
                                 ______
                                 
  SA 2833. Ms. LANDRIEU submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 322, between lines 13 and 14, insert the following:
       (C) Small business concerns.--
       (i) Definition.--In this subparagraph, the term ``small 
     business concern'' has the same meaning as in section 3 of 
     the Small Business Act (15 U.S.C. 632)).
       (ii) Treatment of claims.--Except as provided in clause 
     (iv), in any civil action described under subparagraph (A), 
     the court shall dismiss any asbestos claim against a small 
     business concern, if such small business concern proves that 
     it was not involved in a business involving, and did not use 
     contractors performing duties involving--

       (I) handling raw asbestos;
       (II) fabricating asbestos-containing products that could 
     lead to exposure to raw asbestos; or
       (III) altering, repairing, or otherwise working with 
     asbestos-containing products that could lead to exposure to 
     asbestos fibers.

       (iii) Prior judgment.--In a civil action described under 
     subparagraph (A) involving a small business concern, the 
     court may consider the fact that another asbestos claim 
     against such small business concern was dismissed in 
     determining whether such small business concern was not 
     involved in a business involving, and did not use contractors 
     performing duties involving the materials described in 
     subclause (I), (II), or (III) of clause (ii).
       (iv) Exceptions.--Clause (ii) and (iii) of this 
     subparagraph shall not apply to--

       (I) a claim against an insurance company; or
       (II) a claim against a small business concern by a current 
     or former employee of such small business concern.

       (v) Procedures for settlement of terminal health claims.--
     Notwithstanding any other provision of this Act, the 
     settlement requirements under section 106(f)(2) shall not 
     apply to any terminal health claim, as provided under section 
     106(c)(2), against a small business concern filed before, on, 
     or after the date of enactment of this Act seeking a judgment 
     or order for monetary damages in any Federal or State court.
                                 ______
                                 
  SA 2834. Ms. LANDRIEU submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

         On page 122, between lines 17 and 18, insert the 
     following:
       (11) Asbestos exposure as the result of a natural or other 
     disaster.--
       (A) In general.--A claimant may file an exceptional medical 
     claim with the Fund if such claimant has been exposed to 
     asbestos in any area that is subject to a declaration by the 
     President of a major disaster, as defined under section 102 
     of the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5122), as the result of--
       (i) the attack on the World Trade Center in New York, New 
     York on September 11, 2001; or
       (ii) Hurricane Katrina and Hurricane Rita of 2005 in the 
     Gulf Region of the United States.
       (B) Review of Evidence.--In reviewing medical evidence 
     submitted by a claimant under subparagraph (A)(i) or (ii), 
     the Physicians Panel shall take into consideration the unique 
     nature of these disasters and the potential for asbestos 
     exposure resulting from these disasters.
                                 ______
                                 
  SA 2835. Mr. KENNEDY submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 315, strike line 1 and all that follows through 
     page 318, line 2, and insert the following:

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

       (a) Effect on Federal and State Law.--The provisions of 
     this Act shall supersede any Federal or State law insofar as 
     such law may relate to any asbestos claim, including any 
     claim described under subsection (e)(2).
       (b) Effect on Silica Claims.--
       (1) In general.--
       (A) Rule of construction.--Nothing in this Act shall be 
     construed to preempt, bar, or otherwise preclude any civil 
     action in Federal or State court seeking damages for personal 
     injury attributable to exposure to silica as to which the 
     plaintiff--
       (i) pleads with particularity and establishes by a 
     preponderance of evidence either that--

       (I) no claim has been asserted or filed by or with respect 
     to the exposed person in any forum for any asbestos-related 
     condition and the exposed person (or another claiming on 
     behalf of or through the exposed person) is not eligible for 
     any monetary award under this Act; or
       (II)(aa) the exposed person suffers or has suffered from a 
     disease or condition that was caused by exposure to silica; 
     and
       (bb) asbestos exposure was not a substantial contributing 
     factor to such disease or condition; and

       (ii) satisfies the requirements of paragraph (2).
       (B) Preemption.--Civil actions seeking damages for personal 
     injury attributable to exposure to silica that fail to meet 
     the requirements of subparagraph (A) shall be preempted by 
     this Act.
       (2) Required evidence.--In any claim to which paragraph (1) 
     applies, the complaint (or, for claims pending on the date of 
     enactment of this Act, an amended pleading to be filed within 
     60 days after such date, but not later than 60 days before 
     trial) shall be accompanied by--
       (A) admissible evidence, including at a minimum, a B-
     reader's report, and the underlying x-ray film showing that 
     the claim may be maintained and is not preempted under 
     paragraph (1);
       (B) notice of any previous lawsuit or claim for benefits in 
     which the exposed person, or another claiming on behalf of or 
     through the injured person, asserted an injury or disability 
     based wholly or in part on exposure to asbestos;
       (C) if known by the plaintiff after reasonable inquiry by 
     the plaintiff or his representative, the history of the 
     exposed person's exposure, if any, to asbestos; and
       (D) copies of all medical and laboratory reports pertaining 
     to the exposed person that refer to asbestos or asbestos 
     exposure.
       (3) Statute of limitations.--In general, the statute of 
     limitations for a silica claim shall be governed by 
     applicable State law, except that in any case under this 
     subsection, the statute of limitations shall only start to 
     run when the plaintiff becomes impaired.
       (4) Dual injury.--If an exposed person has both a silica 
     disease or conditions resulting from exposure to silica and a 
     disease or condition resulting from exposure to asbestos, any 
     damages awarded for a claim that meets the requirements of 
     paragraph (2)--
       (A) shall be limited to damages attributable to the exposed 
     person's exposure to silica; and
       (B) shall not include damages attributable to the exposed 
     person's exposure to asbestos.
                                 ______
                                 
  SA 2836. Mr. KENNEDY submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 392, after line 5, insert the following:

[[Page S1271]]

     SEC. 503. CONTINUANCE OF TERMINAL HEALTH CLAIMS.

       Nothwithstanding section 106(f)(2) or any other provision 
     of this Act, any individual who has filed a terminal health 
     claim before the date of enactment of this Act may continue 
     that terminal health claim in the court where the case was 
     pending on the date of enactment of this Act. For terminal 
     health claims filed after the date of enactment of this Act 
     and before the Administrator certifies to Congress that the 
     Fund is operational and paying valid claims at a reasonable 
     rate, by claimants who do not elect to seek an offer of 
     judgment under section 106(f)(2), the pending claim is not 
     stayed and such claimants may continue the terminal health 
     claims where the case is filed.
                                 ______
                                 
  SA 2837. Mr. KENNEDY submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 46, line 18, strike all through page 62, line 8, 
     and insert the following:
       (1) Stay of claims.--Notwithstanding any other provision of 
     this Act, any asbestos claim pending on the date of enactment 
     of this Act, other than a terminal health claim to which 
     paragraph (2) of this subsection applies, a claim to which 
     section 403(d)(2) applies, a terminal health claim, or as 
     otherwise provided in section 402(f), is stayed.
       (2) Terminal health claims.--
       (A) Procedures for settlement of terminal health claims.--
       (i) In general.--Any person that has filed a terminal 
     health claim, as provided under subsection (c)(2), seeking a 
     judgment or order for monetary damages in any Federal or 
     State court before the date of the enactment of this Act, 
     shall seek a settlement in accordance with this paragraph. 
     Any person with a terminal health claim, as provided under 
     subsection (c)(2), that arises after such date of enactment 
     shall seek a settlement in accordance with this paragraph.
       (ii) Filing.--

       (I) In general.--At any time before the Fund or claims 
     facility is certified as operational and paying terminal 
     health claims at a reasonable rate, any person with a 
     terminal health claim as described under clause (i) shall 
     file a notice of their intent to seek a settlement or shall 
     file their exigent health claim with the Administrator or 
     claims facility. Filing of an exigent health claim with the 
     Administrator or claims facility may serve as notice of 
     intent to seek a settlement.
       (II) Exception.--Any person who seeks compensation for an 
     exigent health claim from a trust in accordance with section 
     402(f) shall not be eligible to seek a settlement or 
     settlement offer under this paragraph.

       (iii) Terminal health claim information.--To file a 
     terminal health claim, each individual shall provide all of 
     the following information:

       (I) The amount received or entitled to be received as a 
     result of all collateral source compensation under section 
     134, and copies of all settlement agreements and related 
     documents sufficient to show the accuracy of that amount.
       (II) A description of any claims for compensation for an 
     asbestos related injury or disease filed by the claimant with 
     any trust or class action trust, and the status or 
     disposition or any such claims.
       (III) All information that the claimant would be required 
     to provide to the Administrator in support of a claim under 
     sections 113(c) and 121.
       (IV) A certification by the claimant that the information 
     provided is true and complete. The certification provided 
     under this subclause shall be subject to the same penalties 
     for false or misleading statements that would be applicable 
     with regard to information provided to the Administrator or 
     claims facility in support of a claim.
       (V) For terminal health claims arising after the date of 
     enactment of this Act, the claimant shall identify each 
     defendant that would be an appropriate defendant in a civil 
     action seeking damages for the asbestos claim of the 
     claimant. Identification of all potential participants shall 
     be made in good faith by the claimant.

       (iv) Timing.--A claimant who has filed a notice of their 
     intent to seek a settlement under clause (ii) shall within 60 
     days after filing notice provide to the Administrator or 
     claims facility the information required under clause (iii). 
     If a claimant has filed an exigent health claim under clause 
     (ii) the Administrator shall provide all affected defendants 
     the information required under clause (iii).
       (v) Website.--

       (I) Posting.--The Administrator or claims facility shall 
     post the information described in subclause (II) to a secure 
     website, accessible on a passcode-protected basis to 
     participants.
       (II) Required information.--The website established under 
     subclause (I) shall contain a listing of--

       (aa) each claimant that has filed a notice of intent to 
     seek a settlement or claim under this clause;
       (bb) the name of such claimant; and
       (cc) if applicable--
       (AA) the name of the court where such claim was filed;
       (BB) the case or docket number of such claim; and
       (CC) the date such claim was filed.

       (III) Prohibitions.--The website established under 
     subclause (I) shall not contain specific health or medical 
     information or social security numbers.
       (IV) Participant access.--A participant's access to the 
     website established under subclause (I) shall be limited on a 
     need to know basis, and participants shall not disclose or 
     sell data, or retain data for purposes other than paying an 
     asbestos claim.
       (V) Violations.--Any person or other entity that violates 
     any provision of this clause, including by breaching any data 
     posted on the website, shall be subject to an injunction, or 
     civil penalties, or both.

       (vi) Administrator or claims facility certification of 
     settlement.--

       (I) Determination.--Within 60 days after the information 
     under clause (iii) is provided, the Administrator or claims 
     facility shall determine whether or not the claim meets the 
     requirements of a terminal health claim.
       (II) Requirements met.--If the Administrator or claims 
     facility determines that the claim meets the requirements of 
     a terminal health claim, the Administrator or claims facility 
     shall immediately--

       (aa) issue and serve on all parties a certification of 
     eligibility of such claim;
       (bb) determine the value of such claim under the Fund by 
     subtracting from the amount in section 131 the total amount 
     of collateral source compensation received by the claimant; 
     and
       (cc) pay the award of compensation to the claimant under 
     clause (xiii).

       (III) Requirements not met.--If the requirements under 
     clause (iii) are not met, the claimant shall have 30 days to 
     perfect the claim. If the claimant fails to perfect the claim 
     within that 30-day period or the Administrator or claims 
     facility determines that the claim does not meet the 
     requirements of a terminal health claim, the claim shall not 
     be eligible to proceed under this paragraph. A claimant may 
     appeal any decision issued by a claims facility with the 
     Administrator in accordance with section 114.

       (vii) Failure to certify.--If the Administrator or claims 
     facility is unable to process the claim and does not make a 
     determination regarding the certification of the claim as 
     required under clause (vi), the Administrator or claims 
     facility shall within 10 days after the end of the 60-day 
     period referred to under clause (vi)(I) provide notice of the 
     failure to act to the claimant and the defendants in the 
     pending Federal or State court action or the defendants 
     identified under clause (iii)(IV). If the Administrator or 
     claims facility fails to provide such notice within 10 days, 
     the claimant may elect to provide the notice to the affected 
     defendants to prompt a settlement offer. The Administrator or 
     claims facility shall list all terminal health claims for 
     which notice has been provided under this clause on the 
     website established under clause (v).
       (viii) Failure to pay.--If the Administrator or claims 
     facility does not pay the award as required under clause 
     (xiii), the Administrator shall refer the certified claim 
     within 10 days as a certified terminal health claim to the 
     defendants in the pending Federal and State court action or 
     to the potential defendants identified under clause (iii)(IV) 
     for terminal claims arising after the date of enactment of 
     this Act. The Administrator or claims facility shall list all 
     terminal health claims for which notice has been provided 
     under this clause on the website established under clause 
     (v).
       (ix) Settlement offer.--Any participant or participants 
     may, within 30 days after receipt of such notice as provided 
     under clause (vii) or (viii), file and serve on all parties 
     and the Administrator a good faith settlement offer in an 
     aggregate amount not to exceed the total amount to which the 
     claimant would receive under section 131. If the aggregate 
     amount offered by all participants exceeds the award 
     determined by the Administrator, all offers shall be deemed 
     reduced pro-rata until the aggregate amount equals the award 
     amount. An acceptance of such settlement offer for claims 
     pending before the date of enactment of this Act shall be 
     subject to approval by the trial judge or authorized 
     magistrate in the court where the claim is pending. The court 
     shall approve any such accepted offer within 20 days after a 
     request, unless there is evidence of bad faith or fraud. No 
     court approval is necessary if the terminal health claim was 
     certified by the Administrator or claims facility under 
     clause (vi).
       (x) Acceptance or rejection.--Within 20 days after receipt 
     of the settlement offer, or the amended settlement offer, the 
     claimant shall either accept or reject such offer in writing. 
     If the amount of the settlement offer made by the 
     Administrator, claims facility, or participants equals 100 
     percent of what the claimant would receive under the Fund, 
     the claimant shall accept such settlement in writing.
       (xi) Opportunity to cure.--If the settlement offer is 
     rejected for being less than what the claimant would receive 
     under the Fund, the participants shall have 10 business days 
     to make an amended offer. If the amended offer equals 100 
     percent of what the claimant would receive under the Fund, 
     the claimant shall accept such settlement offer in writing. 
     If the settlement offer is again rejected as less than what 
     the claimant would

[[Page S1272]]

     receive under the Fund or if participants fail to make an 
     amended offer, the claimant shall recover 150 percent of what 
     the claimant would receive under the Fund. If the amount of 
     the amended settlement offer made by the Administrator, 
     claims facility, or participants equals 150 percent of what 
     the claimant would receive under the Fund, the claimant shall 
     accept such settlement in writing.
       (xii) Payment schedule.--

       (I) Mesothelioma claimants.--For mesothelioma claimants--

       (aa) an initial payment of 50 percent shall be made within 
     30 days after the date the settlement is accepted and the 
     second and final payment shall be made 6 months after date 
     the settlement is accepted; or
       (bb) if the Administrator determines that the payment 
     schedule would impose a severe financial hardship on the 
     Fund, or if the court determines that the settlement offer 
     would impose a severe financial hardship on the participant, 
     the payments may be extended 50 percent in 6 months and 50 
     percent 11 months after the date the settlement offer is 
     accepted.

       (II) Other terminal claimants.--For other terminal 
     claimants, as defined under section 106(c)(2)(B) and (C)--

       (aa) the initial payment of 50 percent shall be made within 
     6 months after the date the settlement is accepted and the 
     second and final payment shall be made 12 months after date 
     the settlement is accepted; or
       (bb) if the Administrator determines that the payment 
     schedule would impose a severe financial hardship on the 
     Fund, or if the court determines that the settlement offer 
     would impose a severe financial hardship on the participants, 
     the payments may be extended 50 percent within 1 year after 
     the date the settlement offer is accepted and 50 percent in 2 
     years after date the settlement offer is accepted.

       (III) Release.--Once a claimant has received final payment 
     of the accepted settlement offer, and penalty payment if 
     applicable, the claimant shall release any outstanding 
     asbestos claims.

       (xiii) Recovery of costs.--

       (I) In general.--Any participant whose settlement offer is 
     accepted may recover the cost of such settlement by deducting 
     from the participant's next and subsequent contributions to 
     the Fund the full amount of the payment made by such 
     participant to the terminal health claimant, unless the 
     Administrator finds, on the basis of clear and convincing 
     evidence, that the participant's offer is not in good faith. 
     Any such payment shall be considered a payment to the Fund 
     for purposes of section 404(e)(1) and in response to the 
     payment obligations imposed on participants in title II.
       (II) Reimbursement.--Notwithstanding subclause (I), if the 
     deductions from the participant's next and subsequent 
     contributions to the Fund do not fully recover the cost of 
     such payments on or before its third annual contribution to 
     the Fund, the Fund shall reimburse such participant for such 
     remaining cost not later than 6 months after the date of the 
     third scheduled Fund contribution.

       (xiv) Failure to make offer.--If participants fail to make 
     a settlement offer within the 30-day period described under 
     clause (ix) or make amended offers within the 10 business day 
     cure period described under clause (xi), the claimant shall 
     be entitled to recover 150 percent of what the claimant would 
     receive under the Fund.
       (xv) Failure to pay.--If a participant fails to pay an 
     accepted settlement offer within the payment schedule under 
     clause (xii), the claimant shall be entitled to recover 150 
     percent of what the claimant would receive under the Fund. If 
     the stay is lifted under subparagraph (B) the claimant may 
     seek a judgment or order for monetary damages from the court 
     where the case is currently pending or the appropriate 
     Federal or State court for claims arising after the date of 
     enactment of this Act.
       (B) Stay terminated and reversion to court.--If 9 months 
     after a terminal health claim has been filed under 
     subparagraph (A), a claimant has not received a settlement 
     under subparagraph (A)(xii) and the Administrator has not 
     certified to Congress that the Fund or claims facility is 
     operational and paying terminal health claims at a reasonable 
     rate, the stay of claim provided under paragraph (1) shall be 
     lifted and such terminal health claimant, may immediately 
     seek a judgment or order for monetary damages from the court 
     where the case is currently pending or the appropriate 
     Federal or State court for claims arising after the date of 
     enactment of this Act. If a claimant has failed to file a 
     claim or notice of intent to seek a settlement, as required 
     under subparagraph (A)(ii), the provisions of this 
     subparagraph shall not apply.
       (c) Continuance of Terminal Health Claims.--
     Nothwithstanding section 106(f)(2) or any other provision of 
     this Act, any individual who has filed a terminal health 
     claim before the date of enactment of this Act may continue 
     that terminal health claim in the court where the case was 
     pending on the date of enactment of this Act. For terminal 
     health claims filed after the date of enactment of this Act 
     and before the Administrator certifies to Congress that the 
     Fund is operational and paying valid claims at a reasonable 
     rate, by claimants who do not elect to seek an offer of 
     judgment under subparagraph (A), the pending claim is not 
     stayed and such claimants may continue the terminal health 
     claims where the case is filed.
                                 ______
                                 
  SA 2838. Mr. LAUTENBERG (for himself and Mr. Menendez) submitted an 
amendment intended to be proposed to amendment SA 2746 proposed by Mr. 
Frist (for Mr. Specter (for himself and Mr. Leahy)) to the bill S. 852, 
to create a fair and efficient system to resolve claims of victims for 
bodily injury caused by asbestos exposure, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 102, between lines 17 and 18, insert the following:
       (5) Waiver for workers and residents of vermiculite 
     processing sites and communities in new jersey.--Because of 
     the unique nature of asbestos exposure related to the 
     processing operations of vermiculite ore, the Administrator 
     shall waive the exposure requirements under this subtitle for 
     an individual who worked at a vermiculite processing site in 
     the State of New Jersey, or lived or worked within a 10 mile 
     radius of such processing site, for at least 12 consecutive 
     months before December 31, 2005. Claimants under this 
     paragraph shall provide such supporting documentation, as the 
     Administrator shall require.
       On page 102, line 18, strike ``(5)'' and insert ``(6)''.
       On page 104, line 14, strike ``(6)'' and insert ``(7)''.
       On page 123, between lines 10 and 11, insert the following:
       (9) New jersey processing sites.--The claims procedures 
     described under paragraph (8) relating to Libby, Montana 
     claimants shall apply to any eligible claimant who worked at 
     a vermiculite processing site in the State of New Jersey, or 
     lived or worked within a 10 mile radius of such processing 
     site, as described under subsection (c)(5), and where such 
     processing site has been identified by a Federal or State 
     agency as having received or processed vermiculite ore from 
     Libby, Montana.
       On page 123, line 11, strike ``(9)'' and insert ``(10)''.
       On page 125, line 19, strike ``(10)'' and insert ``(11)''.
       On page 366, between line 11 and 12, insert the following:
       (b) New Jersey Processing Site Claimants.--
       (1) In general.--Nothing is this Act shall preclude the 
     formation of a future fund for the payment of eligible 
     medical expenses related to treating asbestos-related disease 
     for individuals who worked at a vermiculite processing site 
     in the State of New Jersey, or lived or worked within a 10 
     mile radius of such processing site.
       (2) Collateral source compensation exception.--The payment 
     of any medical expense under paragraph (1) shall not be 
     collateral source compensations as defined under section 
     134(a).
       On page 366, line 12, strike ``(b)'' and insert ``(c)''.
                                 ______
                                 
  SA 2839. Mr. LAUTENBERG (for himself and Mr. Menendez) submitted an 
amendment intended to be proposed to amendment SA 2746 proposed by Mr. 
Frist (for Mr. Specter (for himself and Mr. Leahy)) to the bill S. 852, 
to create a fair and efficient system to resolve claims of victims for 
bodily injury caused by asbestos exposure, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 392, after line 5, insert the following:

     SEC. 503. WAIVER FOR WORKERS AND RESIDENTS OF VERMICULITE 
                   PROCESSING SITES AND COMMUNITIES IN NEW JERSEY.

       (a) In General.--Because of the unique nature of asbestos 
     exposure related to the processing operations of vermiculite 
     ore, the Administrator shall waive the exposure requirements 
     under subtitle II for an individual who worked at a 
     vermiculite processing site in the State of New Jersey, or 
     lived or worked within a 10 mile radius of such processing 
     site, for at least 12 consecutive months before December 31, 
     2005. Claimants under this paragraph shall provide such 
     supporting documentation, as the Administrator shall require.
       (b) Vermiculite Processing Sites.--The claims procedures 
     described under section 121(g)(8) relating to Libby, Montana 
     claimants shall apply to any eligible claimant who worked at 
     a vermiculite processing site in the State of New Jersey, or 
     lived or worked within a 10 mile radius of such processing 
     site, as described under subsection (a), and where such 
     processing site has been identified by a Federal or State 
     agency as having received or processed vermiculite ore from 
     Libby, Montana.
       (c) Vermiculite Processing Site Claimants.--
       (1) In general.--Nothing is this Act shall preclude the 
     formation of a future fund for the payment of eligible 
     medical expenses related to treating asbestos-related 
     diseases for individuals who worked at a vermiculite 
     processing site in the State of New Jersey, or lived or 
     worked within a 10 mile radius of such processing site, as 
     described under subsection (a).
       (2) Collateral source compensation exception.--The payment 
     of any medical expense under paragraph (1) shall not be 
     collateral source compensations as defined under section 
     134(a).

[[Page S1273]]

                                 ______
                                 
  SA 2840. Mr. ENSIGN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 298, strike lines 16 and 17, and insert the 
     following:
       ``(A) the trust qualifies as a trust under section 201 of 
     that Act; and
       ``(B) the trust does not file an election under section 410 
     of that Act.''.
       On page 301, line 24, insert ``or for electing to opt out 
     under section 410 of the Fairness in Asbestos Injury 
     Resolution Act of 2006 '' before the period.
       On page 375, after line 23, insert the following:

     SEC. 410. OPT-OUT RIGHTS OF CERTAIN TRUSTS AND EFFECT OF OPT-
                   OUT.

       (a)  Opt-Out Rights.--Any trust defined under section 
     201(8) that has been established or formed under a plan of 
     reorganization under chapter 11 of title 11, United States 
     Code, confirmed by a duly entered order or judgment of a 
     court, which order or judgment is no longer subject to any 
     appeal or judicial review on the date of enactment of this 
     Act, may elect not to be covered by this Act by filing 
     written notice of such election to the Administrator not 
     later than 90 days after the date of enactment of this Act.
       (b) Effect of Opt-Out.--
       (1) In general.--Neither this Act nor any amendment made by 
     this Act shall apply to--
       (A) any trust that makes an election under subsection (a); 
     or
       (B) any claim or future demand that has been channeled to 
     that trust.
       (2) Assets and other rights and claims.--A trust that makes 
     an election under subsection (a) shall retain all of its 
     assets. The contractual and other rights of a trust making an 
     election under subsection (a) and claims against other 
     persons (whether held directly or indirectly by others for 
     the benefit of the trust), including the rights and claims of 
     the trust against insurers, shall be preserved and not 
     abrogated by this Act.
                                 ______
                                 
  SA 2841. Mr. BURNS submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 70, line 9, strike ``TLC or FVC'' and insert ``TLC, 
     FVC, or DLCO''.
       On page 119, line 22, strike ``TLC or FVC'' and insert 
     ``TLC, FVC, or DLCO''.
                                 ______
                                 
  SA 2842. Mr. GRAHAM submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 392, after line 5, insert the following:

     SEC. 503. WAIVER FOR WORKERS AND RESIDENTS OF VERMICULITE 
                   PROCESSING SITES AND COMMUNITIES.

       (a) Waiver for Workers and Residents of Vermiculite Mining 
     and Processing Communities.--
       (1) In general.--Because of the nature of asbestos exposure 
     related to the vermiculite mining operations in Libby, 
     Montana, and the vermiculite processing operations associated 
     with such mining operations, the Administrator shall waive 
     the exposure requirements under this subtitle for individuals 
     who worked--
       (A) at the vermiculite mining operations in Libby, Montana, 
     or lived or worked within a 20-mile radius of such mining 
     operations, for at least 12 months before December 31, 2004; 
     and
       (B) at sites processing vermiculite mined from mining 
     operations in Libby, Montana, that--
       (i) the United States Environmental Protection Agency has 
     designated as requiring further action on the basis of 
     current contamination as of the date of enactment of this 
     Act; or
       (ii) processed at least 100,000 tons or more of vermiculite 
     from the Libby, Montana, mine; or
       (iii) currently or subsequently have been identified by any 
     Governmental agency as having processed vermiculite from the 
     Libby, Montana, mine that caused risk from asbestos exposure; 
     or
       (C) or lived within a 20 mile radius of a processing site 
     described in subparagraph (B), for at least 12 months before 
     December 31, 2004.
       (2) Required documentation.--Claimants under this paragraph 
     shall provide such supporting documentation as the 
     Administrator shall require.
       (b) Vermiculite Mining and Processing Claimants.--
       (1) In general.--Notwithstanding section 121(g)(8), a 
     vermiculite mining and processing claimant, as described 
     under subsection (a), may elect to have the claimant's claim 
     designated as an exceptional medical claim and referred to a 
     Physicians Panel for review. In reviewing the medical 
     evidence submitted by such a claimant in support of that 
     claim, the Physicians Panel shall take into consideration the 
     unique and serious nature of asbestos exposure in vermiculite 
     mining and processing operations, including the nature of the 
     pleural disease related to asbestos exposure from such sites.
       (2) Claims.--For all claims for Levels II through IV filed 
     by vermiculite mining and processing claimants, as described 
     under subsection (a), once the Administrator or the 
     Physicians Panel issues a certificate of medical eligibility 
     to such claimant, and notwithstanding the disease category 
     designated in the certificate or the eligible disease or 
     condition established in accordance with this section, or the 
     value of the award determined in accordance with section 114, 
     such claimant shall be entitled to an award that is not less 
     than that awarded to claimants who suffer from asbestosis, 
     Level IV. For all malignant claims filed by vermiculite 
     mining and processing claimants, such claimant shall be 
     entitled to an award that corresponds to the malignant 
     disease category designated by the Administrator or the 
     Physicians Panel.
       (c) Vermiculite Mining and Processing 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 
     vermiculite mining and processing communities, as described 
     under section 121(c)(4). The payment of any such medical 
     expenses shall not be collateral source compensation as 
     defined under section 134(a).
       (d) Miscellaneous.--Section (2)(a)(9) shall have no force 
     or effect.
       (e) Definition.--For purposes of this section, the term 
     ``Governmental agency'' means any regulatory or 
     administrative unit responsible for evaluating sites that 
     received and processed vermiculite ore mined in Libby, 
     Montana.
                                 ______
                                 
  SA 2843. Mr. GRAHAM submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 392, after line 5, insert the following:

     SEC. 503. WAIVER FOR WORKERS AND RESIDENTS OF VERMICULITE 
                   PROCESSING SITES AND COMMUNITIES.

       (a) Waiver for Workers and Residents of Vermiculite Mining 
     and Processing Communities.--
       (1) In general.--Notwithstanding section 121(c)(4), because 
     of the nature of asbestos exposure related to the vermiculite 
     mining operations in Libby, Montana, and the vermiculite 
     processing operations associated with such mining operations, 
     the Administrator shall waive the exposure requirements under 
     subtitle II for individuals who worked--
       (A) at the vermiculite mining operations in Libby, Montana, 
     or lived or worked within a 20-mile radius of such mining 
     operations, for at least 12 months before December 31, 2004; 
     and
       (B) at sites processing vermiculite mined from mining 
     operations in Libby, Montana, that--
       (i) the United States Environmental Protection Agency has 
     designated as requiring further action on the basis of 
     current contamination as of the date of enactment of this 
     Act; or
       (ii) processed at least 100,000 tons or more of vermiculite 
     from the Libby, Montana, mine; or
       (C) or lived within a 20 mile radius of a processing site 
     described in subparagraph (B), for at least 12 months before 
     December 31, 2004.
       (2) Required documentation.--Claimants under this 
     subsection shall provide such supporting documentation as the 
     Administrator shall require.
       (b) Vermiculite Mining and Processing Claimants.--
       (1) In general.--Notwithstanding section 121(g)(8), a 
     vermiculite mining and processing claimant, as described 
     under subsection (a), may elect to have the claimant's claim 
     designated as an exceptional medical claim and referred to a 
     Physicians Panel for review. In reviewing the medical 
     evidence submitted by such a claimant in support of that 
     claim, the Physicians Panel shall take into consideration the 
     unique and serious nature of asbestos exposure in vermiculite 
     mining and processing operations, including the nature of the 
     pleural disease related to asbestos exposure from such sites.
       (2) Claims.--For all claims for Levels II through IV filed 
     by vermiculite mining and processing claimants, as described 
     under subsection (a), once the Administrator or the 
     Physicians Panel issues a certificate of medical eligibility 
     to such claimant, and notwithstanding the disease category 
     designated in the certificate or the eligible disease or 
     condition established in accordance

[[Page S1274]]

     with this section, or the value of the award determined in 
     accordance with section 114, such claimant shall be entitled 
     to an award that is not less than that awarded to claimants 
     who suffer from asbestosis, Level IV. For all malignant 
     claims filed by vermiculite mining and processing claimants, 
     such claimant shall be entitled to an award that corresponds 
     to the malignant disease category designated by the 
     Administrator or the Physicians Panel.
       (c) Vermiculite Mining and Processing 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 
     vermiculite mining and processing communities, as described 
     under section 121(c)(4). The payment of any such medical 
     expenses shall not be collateral source compensation as 
     defined under section 134(a).
       (d) Miscellaneous.--Section (2)(a)(9) shall have no force 
     or effect.
                                 ______
                                 
  SA 2844. Mr. GRAHAM submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 392, after line 5, insert the following:

     SEC. 503. LIBBY, MONTANA CLAIMANTS.

       Notwithstanding any other provision of this Act, any Libby, 
     Montana claimant shall be treated in the same manner and to 
     the same extent as any other claimant under this Act, 
     including for provisions relating to--
       (1) eligibility under the Fund;
       (2) the filing of claims; and
       (3) awards under the Fund.
                                 ______
                                 
  SA 2845. Mr. BURNS (for himself and Mr. Baucus) submitted an 
amendment intended to be proposed to amendment SA 2746 proposed by Mr. 
Frist (for Mr. Specter (for himself and Mr. Leahy)) to the bill S. 852, 
to create a fair and efficient system to resolve claims of victims for 
bodily injury caused by asbestos exposure, and for other purposes; 
which was ordered to lie on the table; as follows:

         On page 119, line 22, strike ``TLC or FVC'' and insert 
     ``TLC, FVC, or DLCO''.
                                 ______
                                 
  SA 2846. Mr. CORNYN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       (a) Short Title.--This Act may be cited as the ``Fairness 
     in Asbestos Injury Resolution Act of 2006'' or the ``FAIR Act 
     of 2006''.

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds the following:
       (1) Millions 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.
       (8) This crisis has also imposed a deleterious burden upon 
     the United States bankruptcy courts, which have assumed a 
     heavy burden of administering complicated and protracted 
     bankruptcies with limited personnel.
       (9) This crisis has devastated many communities across the 
     country, but hardest hit has been Libby, Montana, where 
     tremolite asbestos, 1 of the most deadly forms of asbestos, 
     was contained in the vermiculite ore mined from the area and 
     despite ongoing cleanup by the Environmental Protection 
     Agency, many still suffer from the deadly dust.
       (10) The asbestos found in Libby, Montana, tremolite 
     asbestos, has demonstrated an unusually high level of 
     toxicity, as compared to chrysotile asbestos. Diseases 
     contracted from this tremolite asbestos are unique and highly 
     progressive. These diseases typically manifest in a 
     characteristic pleural disease pattern, and often result in 
     severe impairment or death without radiographic interstitial 
     disease or typical chrysotile markers of radiographic 
     severity. According to the Agency for Toxic Substances and 
     Disease Registry previous studies by the National Institutes 
     of Occupational Safety and Health document significantly 
     increased rates of pulmonary abnormalities and disease 
     (asbestosis and lung cancer) among former workers.
       (11) Environmental Protection Agency supported studies have 
     determined that the raw vermiculite ore mined and milled in 
     Libby, Montana contained 21 to 26 percent asbestos, by 
     weight. The milled ore, resulting from the processing in 
     Libby, which was shipped out of Libby contained markedly 
     reduced percentages of asbestos. A 1982 Environmental 
     Protection Agency-supported sutdy concluded that oreshipped 
     out of Libby contained 0.3 to 7 percent asbestos, by weight.
       (12) In Libby, Montana, exposure pathways are and were not 
     limited to the workplace, rather, for decades there has been 
     an unprecedented 24 hour per day contamination of the 
     community's homes, playgrounds, gardens, and community air, 
     such that the entire community of Libby, Montana, has been 
     designated a Superfund site and is listed on the 
     Environmental Protection Agency's National Priorities List.
       (13) These multiple exposure pathways have caused severe 
     asbestos disease and death not only in former workers at the 
     mine and milling facilities, but also in the workers' spouses 
     and children, and in community members who had no direct 
     contact with the mine. According to the Environmental 
     Protection Agency, some potentially important alternative 
     pathways for past asbestos exposure include elevated 
     concentrations of asbestos in ambient air and recreational 
     exposures from children playing in piles of vermiculite. 
     Furthermore, the Environmental Protection Agency has 
     determined that current potential pathways of exposure 
     include vermiculite placed in walls and attics as thermal 
     insulation, vermiculite or ore used as road bed material, ore 
     used as ornamental landscaping, and vermiculite or 
     concentrated ore used as a soil and garden amendment or 
     aggregate in driveways.
       (14) The Environmental Protection Agency also concluded, 
     ``Asbestos contamination exists in a number of potential 
     source materials at multiple locations in and around the 
     residential and commercial area of Libby . . . While data are 
     not yet sufficient to perform reliable human-health risk 
     evaluations for all sources and all types of disturbance, it 
     is apparent that releases of fiber concentrations higher than 
     Occupational Safety and Health Administration standards may 
     occur in some cases . . . and that screening-level estimates 
     of lifetime excess cancer risk can exceed the upper-bound 
     risk range of 1E-04 usually used by the Environmental 
     Protection Agency for residents under a variety of exposure 
     scenarios. The occurrence of non-occupational asbestos-
     related disease that has been observed among Libby residents 
     is extremely unusual, and has not been associated with 
     asbestos mines elsewhere, suggesting either very high and 
     prolonged environmental exposures and/or increased toxicity 
     of this form of amphibole asbestos.''.
       (15) According to a November 2003 article from the Journal 
     Environmental Health Perspectives titled, Radiographic 
     Abnormalities and Exposure to Asbestos-Contaminated 
     Vermiculite in the Community of Libby, Montana, USA, Libby 
     residents who have evidence of ``no apparent exposure'', 
     i.e., did not work with asbestos, were not a family member of 
     a former worker, etc., had a greater rate of pleural 
     abnormalities (6.7 percent) than did those in control groups 
     or general populations found in other studies from other 
     states (which ranged from 0.2 percent to 4.6 percent). 
     ``Given the ubiquitous nature of vermiculite contamination in 
     Libby, along with historical evidence of elevated asbestos 
     concentrations in the air, it would be difficult to find 
     participants who could be characterized as unexposed.''.
       (16) Nothing in this Act is intended to increase the 
     Federal deficit or impose any burden on the taxpayer. The 
     Office of Asbestos Disease Compensation established under 
     this Act shall be privately funded by annual payments from 
     defendant participants that have been subject to asbestos 
     liability and their insurers. Section 406(b) of this Act 
     expressly

[[Page S1275]]

     provides that nothing in this Act shall be construed to 
     create any obligation of funding from the United States or to 
     require the United States to satisfy any claims if the 
     amounts in the Fund are inadequate. Any borrowing by the Fund 
     is limited to monies expected to be paid into the Fund, and 
     the Administrator shall have no fiscal authroity beyond the 
     amount of private money coming into the Fund. This Act 
     provides the Administrator with broad enforcement authority 
     to pursue debts to the Fund owed by defendant participants or 
     insurer participants and their successors in interest.
       (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) asbestiform amphibole minerals;
       (J) any of the minerals listed under subparagraphs (A) 
     through (I) that has been chemically treated or altered, and 
     any asbestiform variety, type, or component thereof; and
       (K) 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--
       (i) claims alleging damage or injury to tangible property;
       (ii) claims for benefits under a workers' compensation law 
     or veterans' benefits program;
       (iii) claims arising under any governmental or private 
     health, welfare, disability, death or compensation policy, 
     program or plan;
       (iv) claims arising under any employment contract or 
     collective bargaining agreement;
       (v) claims arising out of medical malpractice; or
       (vi) any claim arising under--

       (I) the Americans with Disabilities Act of 1990 (42 U.S.C. 
     12101 et seq.);
       (II) title VII of the Civil Rights Act of 1964 (42 U.S.C. 
     2000e et seq.);
       (III) the Age Discrimination in Employment Act of 1967 (29 
     U.S.C. 621 et seq.);
       (IV) the Equal Pay Act of 1963 (29 U.S.C. 206);
       (V) the Family and Medical Leave Act of 1993 (29 U.S.C. 
     2601 et seq.);
       (VI) section 1979 of the Revised Statutes of the United 
     States (42 U.S.C. 1983); or
       (VII) the Rehabilitation Act of 1973 (29 U.S.C. 701 et 
     seq.).

       (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 final 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 the extent that an illness meets 
     the medical criteria requirements established under subtitle 
     C of title I.
       (8) Employers' liability act.--The term ``Act of April 22, 
     1908 (45 U.S.C. 51 et seq.), commonly known as the Employer's 
     Liability Act'' shall, for all purposes of this Act, include 
     the Act of June 5, 1920 (46 U.S.C. App. 688), commonly known 
     as the Jones Act, and the related phrase ``operations as a 
     common carrier by railroad'' shall include operations as an 
     employer of seamen.
       (9) Fund.--The term ``Fund'' means the Asbestos Injury 
     Claims Resolution Fund established under section 221.
       (10) 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.
       (11) Law.--The term ``law'' includes all law, judicial or 
     administrative decisions, rules, regulations, or any other 
     principle or action having the effect of law.
       (12) 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).
       (13) 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.
       (14) 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.
       (15) Substantially continues.--The term ``substantially 
     continues'' means that the business operations have not been 
     significantly modified by the change in ownership.
       (16) Successor in interest.--The term ``successor in 
     interest'' means any person that, in 1 or a series of 
     transactions, acquires all or substantially all of the assets 
     and properties (including, without limitation, under section 
     363(b) or 1123(b)(4) of title 11, United States Code), 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.
       (17) 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.
       (18) 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 Employers' Liability Act, 
     or damages

[[Page S1276]]

     recovered by any employee in a liability action against an 
     employer.
       (19) 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.
       (20) 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.
       (21) 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.

                  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) Termination of the office.--The Office of Asbestos 
     Disease Compensation shall terminate effective not later than 
     12 months following certification by the Administrator that 
     the Fund has neither paid a claim in the previous 12 months 
     nor has debt obligations remaining to pay.
       (4) Expenses.--There shall be available from the Fund to 
     the Administrator such sums as are necessary for any and all 
     expenses associated with the Office of Asbestos Disease 
     Compensation and necessary to carry out the purposes of this 
     Act. Expenses covered should include--
       (A) management of the Fund;
       (B) personnel salaries and expenses, including retirement 
     and similar benefits;
       (C) the sums necessary for conducting the studies required 
     under this Act;
       (D) all administrative and legal expenses; and
       (E) any other sum that could be attributable to the Fund.
       (b) Appointment of Administrator.--
       (1) In general.--The Administrator of the Office of 
     Asbestos Disease Compensation shall be appointed by the 
     President. The Administrator shall serve for a term of 10 
     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 nongovernmental 
     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 primary 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 terminal circumstances in order to expedite the payment 
     of such claims as soon as possible after startup of the Fund. 
     The Administrator shall contract out the processing of such 
     claims.
       (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 of financial records.--
       (A) In general.--Any person may label any record submitted 
     under this section as a confidential commercial or financial 
     record for the purpose of requesting exemption from 
     disclosure under section 552(b)(4) of title 5, United States 
     Code.
       (B) Duties of administrator and chairman of the asbestos 
     insurers commission.--The Administrator and Chairman of the 
     Asbestos Insurers Commission--
       (i) shall adopt procedures for--

       (I) handling submitted records marked confidential; and
       (II) protecting from disclosure records they determine to 
     be confidential commercial or financial information exempt 
     under section 552(b)(4) of title 5, United States Code; and

       (ii) may establish a pre-submission determination process 
     to protect from disclosure records on reserves and asbestos-
     related liabilities submitted by any defendant participant 
     that is exempt under section 552(b)(4) of title 5, United 
     States Code.
       (C) Review of complaints.--Nothing in this section shall 
     supersede or preempt the de novo review of complaints filed 
     under section 552(b)(4) of title 5, United States Code.
       (3) Confidentiality of medical records.--Any claimant may 
     designate any record submitted under this section as a 
     confidential personnel or medical file 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.

     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 20 members, appointed by the President.
       (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

[[Page S1277]]

     diseases and conditions, assessing asbestos exposure and 
     health risks, filing asbestos claims, administering a 
     compensation or insurance program, or as actuaries, auditors, 
     or investment managers. 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 15 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 10 years.
       (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, State, or local 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 shall 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 15 
     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 120 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 and any other 
     appropriate paralegal assistance;
       (3) respond to inquiries from claimants and potential 
     claimants;
       (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; and
       (5) provide for the establishment of a website where 
     claimants may access all relevant forms and information.
       (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) Limitation.--
       (A) 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 
     the Fund, more than a reasonable attorney's fee.
       (ii) Calculation of reasonable fee.--Any fee obtained under 
     clause (i) shall be calculated by multiplying a reasonable 
     hourly rate by the number of hours reasonably expended on the 
     claim of the individual.
       (iii) Requirements for compensation.--A representative of 
     an individual shall not be eligible to receive a fee under 
     clause (i), unless--

       (I) such representative submits to the Administrator 
     detailed contemporaneous billing records for any work 
     actually performed in the course of representation of an 
     individual; and
       (II) the Administrator finds, based on billing records 
     submitted by the representative under subclause (I), that the 
     work for which compensation is sought was reasonably 
     performed, and that the requested hourly fee is reasonable.

       (2) Penalty.--Any representative of an asbestos claimant 
     who violates this subsection shall be fined not more than the 
     greater of--
       (A) $5,000; or
       (B) twice the amount received by the representative for 
     services rendered in connection with each such violation.

     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 Physicians 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.--Except as provided under subparagraph 
     (B), each Physicians Panel shall consist of 3 physicians, 2 
     of whom shall be designated to participate in each case 
     submitted to the Physicians 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 not more than 15 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 a 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 
     a Physician Panel such compensation as is reasonably 
     necessary to obtain their services.

[[Page S1278]]

       (f) Federal Advisory Committee Act.--A Physicians 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) Immediate Startup.--
       (1) In general.--Subject to section 101(d), the 
     Administrator may--
       (A) start receiving, reviewing, and deciding claims 
     immediately upon the date of enactment of this Act; and
       (B) reimburse the Department of Labor from the Fund for any 
     expense incurred--
       (i) before that date of enactment in preparation for 
     carrying out any of the responsibilities of the Administrator 
     under this Act; and
       (ii) during the 60-day period following that date of 
     enactment to carry out such responsibilities.
       (2) Interim regulations.--Not later than 90 days after the 
     date of enactment of this Act, the Administrator shall 
     promulgate interim regulations and procedures for the 
     processing of claims under this title and the operation of 
     the Fund under title II, including procedures for the 
     expediting of terminal health claims, and processing of 
     claims through the claims facility.
       (b) Interim Personnel and Contracting.--The Secretary of 
     Labor and the Assistant Secretary of Labor for the Employment 
     Standards Administration shall 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 including entering into contracts on an expedited or 
     sole source basis during the startup period for the purpose 
     of processing claims or providing financial analysis or 
     assistance. 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) Terminal Health Claims.--
       (1) In general.--The Administrator shall develop 
     procedures, as provided in section 106(f), to provide for an 
     expedited process to categorize, evaluate, and pay terminal 
     health claims. Such procedures, as provided in section 
     106(f), shall include, pending promulgation of final 
     regulations, adoption of interim regulations as needed for 
     processing of terminal health claims.
       (2) Eligible terminal health claims.--A claim shall qualify 
     for treatment as a terminal health claim if--
       (A) the claimant is living and provides a diagnosis of 
     mesothelioma meeting the requirements of section 121(d)(9);
       (B) the claimant is living and provides a credible 
     declaration or affidavit, from a diagnosing 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 due 
     to such asbestos-related illness; or
       (C) the claimant is the spouse or child of an eligible 
     terminal health claimant who--
       (i) was living when the claim was filed with the Fund, or 
     if before the implementation of interim regulations for the 
     filing of claims with the Fund, on the date of enactment of 
     this Act;
       (ii) has since died from a malignant disease or condition; 
     and
       (iii) has not received compensation from the Fund for the 
     disease or condition for which the claim was filed.
       (3) Additional terminal health claims.--The Administrator 
     may, in final regulations promulgated under section 101(c), 
     designate additional categories of claims that qualify as 
     terminal health claims under this subsection except that 
     exceptional medical claims may not proceed.
       (4) Claims facility.--To facilitate the prompt payment of 
     terminal health claims prior to the Fund being certified as 
     operational, the Administrator shall contract with a claims 
     facility, which applying the medical criteria of section 121, 
     shall process and pay claims in accordnace with section 
     106(f)(2). The processing and payment of claims shall be 
     subject to regulations promulgated under this Act.
       (5) Authorization for contracts with claims facilities.--
     The Administrator may enter into contracts with a claims 
     facility for the processing of claims (except for exceptional 
     medical claims) in accordance with this title.
       (d) Prioritization of Claims.--The Administrator shall, in 
     final regulations promulgated under section 101(c), designate 
     categories of claims to be handled on an expedited basis. The 
     Administrator shall prioritize the processing and payment of 
     health claims involving claimants with the most serious 
     health claims. The Administrator shall also prioritize claims 
     from claimants who face 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 exposure to asbestos was a 
     substantial contributing factor for the illness in question.
       (f) Stay of Claims.--
       (1) Stay of claims.--Notwithstanding any other provision of 
     this Act, any asbestos claim pending on the date of enactment 
     of this Act is stayed.
       (2) Terminal health claims.--
       (A) Procedures for settlement of terminal health claims.--
       (i) In general.--Any person that has filed a terminal 
     health claim, as provided under subsection (c)(2), seeking a 
     judgment or order for monetary damages in any Federal or 
     State court before the date of the enactment of this Act, 
     shall seek a settlement in accordance with this paragraph. 
     Any person with a terminal health claim, as provided under 
     subsection (c)(2), that arises after such date of enactment 
     shall seek a settlement in accordance with this paragraph.
       (ii) Filing.--

       (I) In general.--At any time before the Fund or claims 
     facility is certified as operational and paying terminal 
     health claims at a reasonable rate, any person with a 
     terminal health claim as described under clause (i) shall 
     file a notice of their intent to seek a settlement or shall 
     file their exigent health claim with the Administrator or 
     claims facility. Filing of an exigent health claim with the 
     Administrator or claims facility may serve as notice of 
     intent to seek a settlement.
       (II) Exception.--Any person who seeks compensation for an 
     exigent health claim from a trust in accordance with section 
     402(f) shall not be eligible to seek a settlement or 
     settlement offer under this paragraph.

       (iii) Terminal health claim information.--To file a 
     terminal health claim, each individual shall provide all of 
     the following information:

       (I) The amount received or entitled to be received as a 
     result of all collateral source compensation under section 
     134, and copies of all settlement agreements and related 
     documents sufficient to show the accuracy of that amount.
       (II) A description of any claims for compensation for an 
     asbestos related injury or disease filed by the claimant with 
     any trust or class action trust, and the status or 
     disposition or any such claims.
       (III) All information that the claimant would be required 
     to provide to the Administrator in support of a claim under 
     sections 113(c) and 121.
       (IV) A certification by the claimant that the information 
     provided is true and complete. The certification provided 
     under this subclause shall be subject to the same penalties 
     for false or misleading statements that would be applicable 
     with regard to information provided to the Administrator or 
     claims facility in support of a claim.
       (V) For terminal health claims arising after the date of 
     enactment of this Act, the claimant shall identify each 
     defendant that would be an appropriate defendant in a civil 
     action seeking damages for the asbestos claim of the 
     claimant. Identification of all potential participants shall 
     be made in good faith by the claimant.

       (iv) Timing.--A claimant who has filed a notice of their 
     intent to seek a settlement under clause (ii) shall within 60 
     days after filing notice provide to the Administrator or 
     claims facility the information required under clause (iii). 
     If a claimant has filed an exigent health claim under clause 
     (ii) the Administrator shall provide all affected defendants 
     the information required under clause (iii).
       (v) Website.--

       (I) Posting.--The Administrator or claims facility shall 
     post the information described in subclause (II) to a secure 
     website, accessible on a passcode-protected basis to 
     participants.
       (II) Required information.--The website established under 
     subclause (I) shall contain a listing of--

       (aa) each claimant that has filed a notice of intent to 
     seek a settlement or claim under this clause;
       (bb) the name of such claimant; and
       (cc) if applicable--
       (AA) the name of the court where such claim was filed;
       (BB) the case or docket number of such claim; and
       (CC) the date such claim was filed.

       (III) Prohibitions.--The website established under 
     subclause (I) shall not contain specific health or medical 
     information or social security numbers.
       (IV) Participant access.--A participant's access to the 
     website established under subclause (I) shall be limited on a 
     need to know basis, and participants shall not disclose or 
     sell data, or retain data for purposes other than paying an 
     asbestos claim.
       (V) Violations.--Any person or other entity that violates 
     any provision of this clause, including by breaching any data 
     posted on the website, shall be subject to an injunction, or 
     civil penalties, or both.

       (vi) Administrator or claims facility certification of 
     settlement.--

       (I) Determination.--Within 60 days after the information 
     under clause (iii) is provided, the Administrator or claims 
     facility shall determine whether or not the claim

[[Page S1279]]

     meets the requirements of a terminal health claim.
       (II) Requirements met.--If the Administrator or claims 
     facility determines that the claim meets the requirements of 
     a terminal health claim, the Administrator or claims facility 
     shall immediately--

       (aa) issue and serve on all parties a certification of 
     eligibility of such claim;
       (bb) determine the value of such claim under the Fund by 
     subtracting from the amount in section 131 the total amount 
     of collateral source compensation received by the claimant; 
     and
       (cc) pay the award of compensation to the claimant under 
     clause (xiii).

       (III) Requirements not met.--If the requirements under 
     clause (iii) are not met, the claimant shall have 30 days to 
     perfect the claim. If the claimant fails to perfect the claim 
     within that 30-day period or the Administrator or claims 
     facility determines that the claim does not meet the 
     requirements of a terminal health claim, the claim shall not 
     be eligible to proceed under this paragraph. A claimant may 
     appeal any decision issued by a claims facility with the 
     Administrator in accordance with section 114.

       (vii) Failure to certify.--If the Administrator or claims 
     facility is unable to process the claim and does not make a 
     determination regarding the certification of the claim as 
     required under clause (vi), the Administrator or claims 
     facility shall within 10 days after the end of the 60-day 
     period referred to under clause (vi)(I) provide notice of the 
     failure to act to the claimant and the defendants in the 
     pending Federal or State court action or the defendants 
     identified under clause (iii)(IV). If the Administrator or 
     claims facility fails to provide such notice within 10 days, 
     the claimant may elect to provide the notice to the affected 
     defendants to prompt a settlement offer. The Administrator or 
     claims facility shall list all terminal health claims for 
     which notice has been provided under this clause on the 
     website established under clause (v).
       (viii) Failure to pay.--If the Administrator or claims 
     facility does not pay the award as required under clause 
     (xiii), the Administrator shall refer the certified claim 
     within 10 days as a certified terminal health claim to the 
     defendants in the pending Federal and State court action or 
     to the potential defendants identified under clause (iii)(IV) 
     for terminal claims arising after the date of enactment of 
     this Act. The Administrator or claims facility shall list all 
     terminal health claims for which notice has been provided 
     under this clause on the website established under clause 
     (v).
       (ix) Settlement offer.--Any participant or participants 
     may, within 30 days after receipt of such notice as provided 
     under clause (vii) or (viii), file and serve on all parties 
     and the Administrator a good faith settlement offer in an 
     aggregate amount not to exceed the total amount to which the 
     claimant would receive under section 131. If the aggregate 
     amount offered by all participants exceeds the award 
     determined by the Administrator, all offers shall be deemed 
     reduced pro-rata until the aggregate amount equals the award 
     amount. An acceptance of such settlement offer for claims 
     pending before the date of enactment of this Act shall be 
     subject to approval by the trial judge or authorized 
     magistrate in the court where the claim is pending. The court 
     shall approve any such accepted offer within 20 days after a 
     request, unless there is evidence of bad faith or fraud. No 
     court approval is necessary if the terminal health claim was 
     certified by the Administrator or claims facility under 
     clause (vi).
       (x) Acceptance or rejection.--Within 20 days after receipt 
     of the settlement offer, or the amended settlement offer, the 
     claimant shall either accept or reject such offer in writing. 
     If the amount of the settlement offer made by the 
     Administrator, claims facility, or participants equals 100 
     percent of what the claimant would receive under the Fund, 
     the claimant shall accept such settlement in writing.
       (xi) Opportunity to cure.--If the settlement offer is 
     rejected for being less than what the claimant would receive 
     under the Fund, the participants shall have 10 business days 
     to make an amended offer. If the amended offer equals 100 
     percent of what the claimant would receive under the Fund, 
     the claimant shall accept such settlement offer in writing.
       (xii) Payment schedule.--

       (I) Mesothelioma claimants.--For mesothelioma claimants--

       (aa) an initial payment of 50 percent shall be made within 
     30 days after the date the settlement is accepted and the 
     second and final payment shall be made 6 months after date 
     the settlement is accepted; or
       (bb) if the Administrator determines that the payment 
     schedule would impose a severe financial hardship on the 
     Fund, or if the court determines that the settlement offer 
     would impose a severe financial hardship on the participant, 
     the payments may be extended 50 percent in 6 months and 50 
     percent 11 months after the date the settlement offer is 
     accepted.

       (II) Other terminal claimants.--For other terminal 
     claimants, as defined under section 106(c)(2)(B) and (C)--

       (aa) the initial payment of 50 percent shall be made within 
     6 months after the date the settlement is accepted and the 
     second and final payment shall be made 12 months after date 
     the settlement is accepted; or
       (bb) if the Administrator determines that the payment 
     schedule would impose a severe financial hardship on the 
     Fund, or if the court determines that the settlement offer 
     would impose a severe financial hardship on the participants, 
     the payments may be extended 50 percent within 1 year after 
     the date the settlement offer is accepted and 50 percent in 2 
     years after date the settlement offer is accepted.

       (III) Release.--Once a claimant has received final payment 
     of the accepted settlement offer, and penalty payment if 
     applicable, the claimant shall release any outstanding 
     asbestos claims.

       (xiii) Recovery of costs.--

       (I) In general.--Any participant whose settlement offer is 
     accepted may recover the cost of such settlement by deducting 
     from the participant's next and subsequent contributions to 
     the Fund the full amount of the payment made by such 
     participant to the terminal health claimant, unless the 
     Administrator finds, on the basis of clear and convincing 
     evidence, that the participant's offer is not in good faith. 
     Any such payment shall be considered a payment to the Fund 
     for purposes of section 404(e)(1) and in response to the 
     payment obligations imposed on participants in title II.
       (II) Reimbursement.--Notwithstanding subclause (I), if the 
     deductions from the participant's next and subsequent 
     contributions to the Fund do not fully recover the cost of 
     such payments on or before its third annual contribution to 
     the Fund, the Fund shall reimburse such participant for such 
     remaining cost not later than 6 months after the date of the 
     third scheduled Fund contribution.

       (3) Reservation of rights.--Participation in the offer and 
     settlement process under this subsection shall not affect or 
     prejudice any rights or defenses a party might have in any 
     litigation.

     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 200 miles;
       (2) administer oaths;
       (3) examine witnesses;
       (4) require the production of books, papers, documents, and 
     other evidence; and
       (5) request assistance from other Federal agencies with the 
     performance of the duties of the Administrator under this 
     Act.

          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 
     sections 106(f)(2) and 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 or incompetent) 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 on December 31, 2004.
       (3) Limitation.--A claim may not be filed by any person 
     seeking contribution or indemnity.
       (4) Effect of multiple injuries.--
       (A) In general.--A claimant who receives an award for an 
     eligible disease or condition shall not be precluded from 
     submitting claims for and receiving additional awards under 
     this title for any higher disease level for which the 
     claimant becomes eligible, subject to appropriate setoffs as 
     provided under section 134.
       (B) Libby, montana claims.--
       (i) In general.--Notwithstanding subparagraph (A), if a 
     Libby, Montana claimant worsens in condition, as measured by 
     pulmonary function tests, such that a claimant qualifies for 
     a higher nonmalignant level, the claimant shall be eligible 
     for an additional award, at the appropriate level, offset by 
     any award previously paid under this Act, such that a 
     claimant would qualify for Level IV if the claimant satisfies 
     section 121(f)(8), and would qualify for Level V if the 
     claimant provides--

       (I) a diagnosis of bilateral asbestos related nonmalignant 
     disease;
       (II) evidence of TLC or FVC less than 60 percent; and
       (III) supporting medical documentation establishing 
     asbestos exposure as a substantial contributing factor in 
     causing the pulmonary condition in question, and excluding 
     more likely causes of that pulmonary condition.

[[Page S1280]]

       (ii) Subsequent malignant disease.--If a Libby, Montana, 
     claimant develops malignant disease, such that the claimant 
     qualifies for Level VI, VII, VIII, or IX, subparagraph (A) 
     shall apply.
       (b) Statute of Limitations.--
       (1) In general.--If a claim is not filed with the Office 
     within the limitations period specified in this subsection 
     for that category of claim, such claim shall be extinguished, 
     and any recovery thereon shall be prohibited.
       (2) Initial claims.--An initial claim for an award under 
     this Act shall be filed within 2 years after the date on 
     which the claimant first received a medical diagnosis and 
     medical test results sufficient to satisfy the criteria for 
     the disease level for which the claimant is seeking 
     compensation.
       (3) Claims for additional awards.--
       (A) Non-malignant diseases.--If a claimant has previously 
     filed a timely initial claim for compensation for any non-
     malignant disease level, there shall be no limitations period 
     applicable to the filing of claims by the claimant for 
     additional awards for higher disease levels based on the 
     progression of the non-malignant disease.
       (B) Malignant diseases.--Regardless of whether the claimant 
     has previously filed a claim for compensation for any other 
     disease level, a claim for compensation for a malignant 
     disease level shall be filed within 2 years after the 
     claimant first obtained a medical diagnosis and medical test 
     results sufficient to satisfy the criteria for the malignant 
     disease level for which the claimant is seeking compensation.
       (4) Effect on pending claims.--
       (A) In general.--If, on the date of enactment of this Act, 
     an asbestos claimant has any timely filed asbestos claim that 
     is preempted under section 403(e), such claimant shall file a 
     claim under this section within 2 years after such date of 
     enactment, or any claim relating to that injury, and any 
     other asbestos claim related to that injury shall be 
     extinguished, and recovery on any such claim shall be 
     prohibited.
       (B) Special rule.--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--
       (i) a non-contingent right to the payment of future 
     installments of a fixed award; or
       (ii) 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.
       (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) an employment history sufficient to establish required 
     asbestos exposure, accompanied by social security or other 
     payment 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, or Malignant Level VIII, 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 the Fund or claims facility 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.
       (d) 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 such documents 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. Such fees and mileage shall be 
     paid from the Fund.
       (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 
     the claimant believes relevant.
       (e) 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 (d).
       (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.
       (f) Representation.--A claimant may authorize an attorney 
     or other individual to

[[Page S1281]]

     represent him or her in any proceeding under this Act.

     SEC. 115. AUDITING PROCEDURES.

       (a) In General.--
       (1) Development.--The Administrator shall develop methods 
     for auditing and evaluating the medical and exposure evidence 
     submitted as part of the claims process. 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, medical facility or 
     attorney or law firm is not consistent with prevailing 
     medical practices or the applicable requirements of this Act, 
     any medical evidence from such physician, facility or 
     attorney or law firm 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.--The Administrator shall prescribe 
     procedures to randomly evaluate the x-rays submitted in 
     support of a statistically significant number of claims by 
     independent certified B-readers, the cost of which shall be 
     paid by the Fund.
       (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, or 
     Malignant Level VIII, 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.--
       (A) In general.--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, 
     VII, or VIII, or as an exceptional medical claim, the cost of 
     which shall be paid by the Fund.
       (B) Serum cotinine screening.--The Administrator shall 
     require the performance of serum cotinine screening on all 
     claimants who assert they are nonsmokers or ex-smokers for 
     purposes of an award under Malignant Level VI, VII, or VIII, 
     or as an exceptional medical claim, the cost of which shall 
     be paid by the Fund.
       (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).
       (d) Pulmonary Function Testing.--The Administrator shall 
     develop auditing procedures for pulmonary function test 
     results submitted as part of a claim, to ensure that such 
     tests are conducted in accordance with American Thoracic 
     Society Criteria, as defined under section 121(a)(13).

                      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.
       (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 a claimant 
     who--
       (A) never smoked; or
       (B) has smoked fewer than 100 cigarettes or the equivalent 
     amount of other tobacco products during the claimant's 
     lifetime.
       (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 a significant amount of 
     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 a 
     significant amount of 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 a significant amount of 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

[[Page S1282]]

     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 a significant 
     amount of 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\ of its value. Each year 
     after 1986 shall be counted as \1/10\ of 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 nonmalignant asbestos-
     related disease; or
       (ii) an x-ray reading by a certified B-reader;
       (C) for disease Levels VI through IX, 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 IX, 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) Proof of exposure.--
       (A) Affidavits.--Exposure to asbestos sufficient to satisfy 
     the exposure requirements for any disease level may be 
     established by a detailed and specific affidavit that--
       (i) is filed by--

       (I) the claimant; or
       (II) if the claimant is deceased, a coworker or a family 
     member of the claimant; and

       (ii) is found in proceedings under this title to be--

       (I) reasonably reliable, attesting to the claimant's 
     exposure; and
       (II) credible and not contradicted by other evidence.

       (B) Other proof.--Exposure to asbestos may alternatively be 
     established by invoices, construction or other similar 
     records, or any other reasonably reliable and credible 
     evidence.
       (C) Additional evidence.--The Administrator may require 
     submission of other or additional evidence of exposure, if 
     available, for a particular claim when determined necessary, 
     as part of the minimum information required under section 
     113(c).
       (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 IX 
     (mesothelioma), all claims alleging take-home exposure shall 
     be submitted as an exceptional medical claim under section 
     121(g) 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, 2004. Claimants under this section shall provide such 
     supporting documentation as the Administrator shall require.
       (6) Penalty for false statement.--Any false information 
     submitted under this subsection shall be subject to section 
     1348 of title 18, United States Code (as added by this Act).
       (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;
       (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, such as a written 
     opinion by the examining or diagnosing physician, according 
     to the diagnostic guidelines in section 121(b)(2), 
     establishing asbestos exposure as the cause of 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;
       (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;
       (C) evidence of 5 or more weighted years of substantial 
     occupational exposure to asbestos; and
       (D) supporting medical documentation, such as a written 
     opinion by the examining or diagnosing physician, according 
     to the diagnostic guidelines in section 121(b)(2)--
       (i) establishing asbestos exposure as the cause of 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--
       (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, such as a written 
     opinion by the examining or diagnosing physician, according 
     to the diagnostic guidelines in section 121(b)(2)--
       (i) establishing asbestos exposure as the cause of the 
     pulmonary condition in question; and
       (ii) excluding other more likely causes, other than silica, 
     of that pulmonary condition.

[[Page S1283]]

       (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;
       (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; 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, such as a written 
     opinion by the examining or diagnosing physician, according 
     to the diagnostic guidelines in section 121(b)(2)--
       (i) establishing asbestos exposure as the cause of the 
     pulmonary condition in question; and
       (ii) excluding other more likely causes, other than silica, 
     of that pulmonary condition.
       (8) Malignant level viii.--
       (A) In general.--To receive Level VIII compensation, a 
     claimant shall provide a diagnosis--
       (i) of a primary lung cancer disease on the basis of 
     findings by a board certified pathologist;
       (ii)(I) 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) 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;

       (III) asbestosis determined by pathology and 10 or more 
     weighted years of substantial occupational exposure to 
     asbestos; and
       (iii) supporting medical documentation, such as a written 
     opinion by the examining or diagnosing physician, according 
     to the diagnostic guidelines in section 121(b)(2), 
     establishing asbestos exposure as the cause of the lung 
     cancer in question; and 10 or more weighted years of 
     substantial occupational exposure to asbestos.
       (9) Malignant level ix.--To receive Level IX 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; 
     or
       (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.
       (g) 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.
       (E) Mesothelioma cases.--
       (i) In general.--The Physicans Panel shall grant priority 
     status to--

       (I) all Level IX claims with other identifiable asbestos 
     exposure as provided under paragraph (9)(B)(iv); and
       (II) all Level IX claims that are filed as exceptional 
     medical claims.

       (ii) Physician panel.--If the Physicians Panel issues a 
     certificate of medical eligibility, the claimant shall be 
     deemed to qualify for Level IX compensation. If the 
     Physicians Panel rejects the claim, and the Administrator 
     deems it rejected, the claimant may immediately seek judicial 
     review under section 302.
       (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 
     shall 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 give due consideration to the 
     recommendation of the Physicians Panel in determining 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.--
       (A) In general.--A Libby, Montana, claimant may elect to 
     have the claimant's claims 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, 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, 
     Montana.
       (B) Claims.--For all claims for Levels II through IV filed 
     by Libby, Montana claimants, as described under subsection 
     (c)(4), once the Administrator or the Physicians Panel issues 
     a certificate of medical eligibility to a Libby, Montana 
     claimant, and notwithstanding the disease category designated 
     in the certificate or the eligible disease or condition 
     established in accordance with this section, or the value of 
     the award determined in accordance with section 114, the 
     Libby, Montana claimant shall be entitled to an award that is 
     not less than that awarded to claimants who suffer from 
     asbestosis, Level IV. For all malignant claims filed by 
     Libby, Montana claimants, the Libby, Montana claimant shall 
     be entitled to an award that corresponds to the malignant 
     disease category designated by the Administrator or the 
     Physicians Panel.
       (C) Evaluation of claims.--For purposes of evaluating 
     exceptional medical claims from Libby, Montana, a claimant 
     shall be deemed to have a comparable asbestos-related 
     condition to an asbestos disease category Level IV, and shall 
     be deemed to qualify for compensation at Level IV, if the 
     claimant provides--
       (i) a diagnosis of bilateral asbestos related nonmalignant 
     disease;
       (ii) evidence of TLC or FVC less than 80 percent; and
       (iii) supporting medical documentation establishing 
     asbestos exposure as a substantial contributing factor in 
     causing the pulmonary condition in question, and excluding 
     more likely causes of that pulmonary condition.
       (9) Study of vermiculite processing facilities.--
       (A) In general.--As part of the ongoing National Asbestos 
     Exposure Review (in this section referred to as ``NAER'') 
     being conducted by the Agency for Toxic Substances and 
     Disease Registry (in this section referred to as ``ATSDR'') 
     of facilities that received vermiculite ore from Libby, 
     Montana, the ATSDR shall conduct a study of all Phase 1 sites 
     where--
       (i) the Environmental Protection Agency has mandated 
     further action at the site on the basis of current 
     contamination; or
       (ii) the site was an exfoliation facility that processed 
     roughly 100,000 tons or more of vermiculite from the Libby 
     mine.
       (B) Study by atsdr.--The study by the ATSDR shall evaluate 
     the facilities identified under subparagraph (A) and 
     compare--
       (i) the levels of asbestos emissions from such facilities;
       (ii) the resulting asbestos contamination in areas 
     surrounding such facilities;
       (iii) the levels of exposure to residents living in the 
     vicinity of such facilities;
       (iv) the risks of asbestos-related disease to the residents 
     living in the vicinity of such facilities; and
       (v) the risk of asbestos-related mortality to residents 
     living in the vicinity of such facilities,

[[Page S1284]]

     to the emissions, contamination, exposures, and risks 
     resulting from the mining of vermiculite ore in Libby, 
     Montana.
       (C) Results of study.--The results of the study required 
     under this paragraph shall be transmitted to the 
     Administrator.

                           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 and 
     the matrices developed under 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 as determined under this 
     subsection. The award for all asbestos claimants with an 
     eligible disease or condition established in accordance with 
     section 121 shall be according to the following schedule:

       LevScheduled Condition or Disease  Scheduled Value
      I   Asbestosis/Pleural Disease A..  Medical Monitoring
     II   Mixed Disease With Impairment.  $25,000
    III   Asbestosis/Pleural Disease B..  $100,000
     IV   Severe Asbestosis.............  $400,000
      V   Disabling Asbestosis..........  $850,000
   VIII   Lung Cancer With Asbestosis...  smokers, $600,000;
                                          ex-smokers, $975,000;
                                          non-smokers, $1,100,000
     IX   Mesothelioma..................  $1,100,000
 

       (2) Definitions.--In this section--
       (A) the term ``nonsmoker'' means a claimant who--
       (i) never smoked; or
       (ii) has smoked fewer than 100 cigarettes or the equivalent 
     of other tobacco products during the claimant's lifetime; 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) Level ix adjustments.--
       (A) In general.--The Administrator may increase awards for 
     Level IX claimants who have dependent children so long as the 
     increase under this paragraph is cost neutral. Such increased 
     awards shall be paid for by decreasing awards for claimants 
     other than Level IX, so long as no award levels are decreased 
     more than 10 percent.
       (B) Implementation.--Before making adjustments under this 
     paragraph, the Administrator shall publish in the Federal 
     Register notice of, and a plan for, making such adjustments.
       (4) Special adjustment for fela cases.--
       (A) In general.--A claimant who would be eligible to bring 
     a claim under the Act of April 22, 1908 (45 U.S.C. 51 et 
     seq.), commonly known as the Employers' Liability Act, but 
     for section 403 of this Act, shall be eligible for a special 
     adjustment under this paragraph.
       (B) Regulations.--
       (i) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Administrator shall promulgate 
     regulations relating to special adjustments under this 
     paragraph.
       (ii) Joint proposal.--Not later than 45 days after the date 
     of enactment of this Act, representatives of railroad 
     management and representatives of railroad labor shall submit 
     to the Administrator a joint proposal for regulations 
     describing the eligibility for and amount of special 
     adjustments under this paragraph. If a joint proposal is 
     submitted, the Administrator shall promulgate regulations 
     that reflect the joint proposal.
       (iii) Absence of joint proposal.--If railroad management 
     and railroad labor are unable to agree on a joint proposal 
     within 45 days after the date of enactment of this Act, the 
     benefits prescribed in subparagraph (E) shall be the benefits 
     available to claimants, and the Administrator shall 
     promulgate regulations containing such benefits.
       (iv) Review.--The parties participating in the arbitration 
     may file in the United States District Court for the District 
     of Columbia a petition for review of the Administrator's 
     order. The court shall have jurisdiction to affirm the order 
     of the Administrator, or to set it aside, in whole or in 
     part, or it may remand the proceedings to the Administrator 
     for such further action as it may direct. On such review, the 
     findings and order of the Administrator shall be conclusive 
     on the parties, except that the order of the Administrator 
     may be set aside, in whole or in parts or remanded to the 
     Administrator, for failure of the Administrator to comply 
     with the requirements of this section, for failure of the 
     order to conform, or confine itself, to matters within the 
     scope of the Administrator's jurisdiction, or for fraud or 
     corruption.
       (C) Eligibility.--An individual eligible to file a claim 
     under the Act of April 22, 1908 (45 U.S.C. 51 et seq.), 
     commonly known as the Employers' Liability Act, shall be 
     eligible for a special adjustment under this paragraph if 
     such individual meets the criteria set forth in subparagraph 
     (F).
       (D) Amount.--
       (i) In general.--The amount of the special adjustment shall 
     be based on the type and severity of asbestos disease, and 
     shall be 110 percent of the average amount an injured 
     individual with a disease caused by asbestos, as described in 
     section 121(d) of this Act, would have received, during the 
     5-year period before the enactment of this Act, adjusted for 
     inflation. This adjustment shall be in addition to any other 
     award for which the claimant is eligible under this Act. The 
     amount of the special adjustment shall be reduced by an 
     amount reasonably calculated to take into account all 
     expenses of litigation normally borne by plaintiffs, 
     including attorney's fees.
       (ii) Limitation.--The amount under clause (i) may not 
     exceed the amount the claimant is eligible to receive before 
     applying the special adjustment under that clause.
       (E) Arbitrated benefits.--If railroad management and 
     railroad labor are unable to agree on a joint proposal within 
     45 days after the date of enactment of this Act, the 
     Administrator shall appoint an arbitrator to determine the 
     benefits under subparagraph (D). The Administrator shall 
     appoint an arbitrator who shall be acceptable to both 
     railroad management and railroad labor. Railroad management 
     and railroad labor shall each designate their representatives 
     to participate in the arbitration. The arbitrator shall 
     submit the benefits levels to the Administrator not later 
     than 30 days after appointment and such benefits levels shall 
     be based on information provided by rail labor and rail 
     management. The information submitted to the arbitrator by 
     railroad management and railroad labor shall be considered 
     confidential and shall be disclosed to the other party upon 
     execution of an appropriate confidentiality agreement. Unless 
     the submitting party provides written consent, neither the 
     arbitrator nor either party to the arbitration shall divulge 
     to any third party any information or data, in any form, 
     submitted to the arbitrator under this section. Nor shall 
     either party use such information or data for any purpose 
     other than participation in the arbitration proceeding, and 
     each party shall return to the other any information it has 
     received from the other party as soon the arbitration is 
     concluded. Information submitted to the arbitrator may not be 
     admitted into evidence, nor discovered, in any civil 
     litigation in Federal or State court. The nature of the 
     information submitted to the arbitrator shall be within the 
     sole discretion of the submitting party, and the arbitrator 
     may not require a party to submit any particular information, 
     including information subject to a prior confidentiality 
     agreement.
       (F) Demonstration of eligibility.--
       (i) In general.--A claimant under this paragraph shall be 
     required to demonstrate--

       (I) employment of the claimant in the railroad industry;
       (II) exposure of the claimant to asbestos as part of that 
     employment; and
       (III) the nature and severity of the asbestos-related 
     injury.

       (ii) Medical criteria.--In order to be eligible for a 
     special adjustment a claimant shall meet the criteria set 
     forth in section 121 that would qualify a claimant for a 
     payment under Level II or greater.
       (5) 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.
       (6) Cost-of-living adjustment.--
       (A) In general.--Beginning January 1, 2007, 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 2005.
       (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

[[Page S1285]]

     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) Lump-sum payments.--
       (A) In general.--The Administrator shall develop guidelines 
     to provide for 1 lump-sum payment 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.
       (B) Timing of payments.--Lump-sum payments shall be made 
     within the shorter of--
       (i) not later than 30 days after the date the claim is 
     approved by the Administrator; or
       (ii) not later than 6 months after the date the claim is 
     filed.
       (C) Timing of payments to be adjusted with respect to 
     solvency of the fund.--If the Administrator determines that 
     solvency of the Fund would be severely harmed by the timing 
     of the payments required under subparagraph (B), the time for 
     such payments may be extended to the shorter of--
       (i) not later than 6 months after the date the claim is 
     approved by the Administrator; or
       (ii) not later than 11 months after the date the claim is 
     filed.
       (5) Expedited payments.--
       (A) In general.--The Administrator shall develop guidelines 
     to provide for expedited payments to asbestos claimants in 
     cases of terminal health claims as described under section 
     106(c)(2)(B) and (C).
       (B) Timing of payments.--Total payments shall be made 
     within the shorter of--
       (i) not later than 6 months after the date the claim is 
     approved by the Administrator; or
       (ii) not later than 1 year after the date the claim is 
     filed.
       (C) Timing of payments to be adjusted with respect to 
     solvency of the fund.--If the Administrator determines that 
     solvency of the Fund would be severely harmed by the timing 
     of the payments required under subparagraph (B), the time for 
     such payments may be extended to the shorter of--
       (i) not later than 1 year after the date the claim is 
     approved by the Administrator; or
       (ii) not later than 2 years after the date the claim is 
     filed.
       (D) Prioritization of claims.--The Administrator shall, in 
     final regulations promulgated under section 101(c), designate 
     categories of claims to be handled on an expedited basis. The 
     Administrator shall prioritize the processing and payment of 
     health claims involving claimants with the most serious 
     health risks. The Administrator shall also prioritize claims 
     from claimants who face extreme financial hardship.
       (6) Annuity.--An asbestos claimant may elect to receive any 
     payments to which that claimant is 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.
       (f) Effect of Payment.--The payment of an asbestos claim 
     under this section shall be in full satisfaction of such 
     claim and shall be deemed to operate as a release to such 
     claim. No claimant with an asbestos claim that will be paid 
     under this section may proceed in the tort system with 
     respect to such claim.

     SEC. 134. SETOFFS FOR COLLATERAL SOURCE COMPENSATION AND 
                   PRIOR AWARDS.

       (a) In General.--The amount of an award otherwise available 
     to an asbestos claimant under this title shall be reduced by 
     the amount of any collateral source compensation and by any 
     amounts paid or to be paid to the claimant for a prior award 
     under this Act.
       (b) Exclusions.--
       (1) Collateral source compensation.--In no case shall 
     special adjustments made under section 131(b)(3), 
     occupational or total disability benefits under the Railroad 
     Retirement Act (45 U.S.C. 201 et seq.), sickness benefits 
     under the Railroad Unemployment Insurance Act (45 U.S.C 351 
     et seq.), and veterans' benefits programs be deemed as 
     collateral source compensation for purposes of this section.
       (2) Prior award payments.--Any amounts paid or to be paid 
     for a prior claim for a nonmalignant disease (Levels I 
     through V) filed against the Fund shall not be deducted as a 
     setoff against amounts payable for the second injury claims 
     for a malignant disease (Levels VI through IX), unless the 
     malignancy was diagnosed before the date on which the 
     nonmalignancy claim was compensated.

     SEC. 135. CERTAIN CLAIMS NOT AFFECTED BY PAYMENT OF AWARDS.

       (a) In General.--The payment of an award under section 106 
     or 133 shall not be considered a form of compensation or 
     reimbursement for a loss for purposes of imposing liability 
     on any asbestos claimant receiving such payment to repay 
     any--
       (1) life or health insurance carrier for insurance 
     payments; or
       (2) person or governmental entity on account of health care 
     or disability payments.
       (b) No Effect on Claims.--
       (1) In general.--The payment of an award to an asbestos 
     claimant under section 106 or 133 shall not affect any claim 
     of an asbestos claimant against--
       (A) a life or health insurance carrier with respect to 
     insurance; or
       (B) against any person or governmental entity with respect 
     to healthcare or disability.
       (2) Rule of construction.--Nothing in this subsection shall 
     be construed to authorize the pursuit of a claim that is 
     preempted under section 403.

            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) 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.
       (3) 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.
       (4) 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.
       (5) 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(h);
       (C) shall not include any payment made by a person in 
     connection with or as a result of

[[Page S1286]]

     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 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.
       (6) 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).
       (7) Asbestos premises claim.--The term ``asbestos premises 
     claim''--
       (A) means an asbestos claim against a current or former 
     premises owner or landowner, or person controlling or 
     possessing premises or land, alleging injury or death caused 
     by exposure to asbestos on such premises or land or by 
     exposure to asbestos carried off such premises or land on the 
     clothing or belongings of another person; and
       (B) includes any such asbestos claim against a current or 
     former employer alleging injury or death caused by exposure 
     to asbestos on premises or land owned, controlled or 
     possessed by the employer, if such claim is not a claim for 
     benefits under a workers' compensation law or veterans' 
     benefits program.
       (8) Asbestos premises defendant participant.--The term 
     ``asbestos premises defendant participant'' means any 
     defendant participant for which 95 percent or more of its 
     prior asbestos expenditures relate to asbestos premises 
     claims against that defendant participant.

     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.--The total 
     payments required of all defendant participants over the life 
     of the Fund shall not exceed a sum equal to $90,000,000,000 
     less any bankruptcy trust credits under section 222(d). 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 under section 524(g) of title 11, United States 
     Code. 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.--
       (A) In general.--In this subsection, the term ``bankrupt 
     business entity'' means a person that is not a natural person 
     that--
       (i) filed a petition for relief under chapter 11, of title 
     11, United States Code, before January 1, 2003;
       (ii) has not substantially consummated, as such term is 
     defined under section 1101(2) of title 11, United States 
     Code, a plan of reorganization as of the date of enactment of 
     this Act; and
       (iii) 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 after the date of 
     enactment of this Act, that asbestos liability was not the 
     sole or precipitating cause of the entity's chapter 11 
     filing.
       (B) Motion and related matters.--A motion under 
     subparagraph (A)(iii) 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.
     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 30 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 shall be an expedited 
     appeal and limited to whether the decision was against the 
     weight of the evidence. Any appeal of a determination shall 
     be an expedited review to the United States Circuit Court of 
     Appeals for the circuit in which the bankruptcy is filed.
       (2) Proceeding with reorganization plan.--A bankrupt 
     business entity may proceed with the filing, solicitation, 
     confirmation, and consummation 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 the 
     bankruptcy court makes a favorable determination under 
     paragraph (1)(B), unless the bankruptcy court's determination 
     is overruled on appeal and all appeals are final. Such a 
     bankrupt business entity may continue to so proceed, 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 such confirmation is required to avoid 
     the liquidation or the need for further financial 
     reorganization of that entity; 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 determination required under paragraph (2), or if an 
     order confirming the plan is not entered 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, 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 under 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 under section 
     524(g) of title 11, United States Code, may be counted as a 
     contribution to the Fund.
       (d) Tiers II Through VI.--Except as provided in section 204 
     and subsection (b) of this section, 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.
       (6) Asbestos premises defendant participants.--
       (A) In general.--Asbestos premises defendant participants 
     that would be included in Tier II, III, IV or V according to 
     their prior asbestos expenditures shall, after 5 years of the 
     Fund being operational, instead be assigned to the 
     immediately lower tier, such that--
       (i) an asbestos premises defendant participant that would 
     be assigned to Tier II shall instead be assigned to Tier III;
       (ii) an asbestos premises defendant participant that would 
     be assigned to Tier III shall instead be assigned to Tier IV;
       (iii) an asbestos premises defendant participant that would 
     be assigned to Tier IV shall instead be assigned to Tier V; 
     and
       (iv) an asbestos premises defendant participant that would 
     be assigned to Tier V shall instead be assigned to Tier VI.
       (B) Return to original tier.--The Administrator may return 
     asbestos premises defendant participants to their original 
     tier, on a yearly basis, if the Administrator determines that 
     the additional revenues that would be collected are needed to 
     preserve the solvency of the Fund.
       (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(j)(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.

[[Page S1287]]

       (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.--Notwithstanding section 
     403(c)(3), any plan of reorganization, agreement, 
     understanding, or undertaking by any debtor (including any 
     pre-petition agreement, understanding, or undertaking that 
     requires future performance) or any third party under 
     paragraph (1), and any agreement, understanding, or 
     undertaking entered into in anticipation, contemplation, or 
     furtherance of a plan of reorganization, 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 such agreement, understanding, or undertaking.

     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.--
       (i) In general.--Each debtor included in Subtier 1 shall 
     pay on an annual basis 1.67024 percent of the debtor's 2002 
     revenues.
       (ii) Exception to payment percentage.--Notwithstanding 
     clause (i), a debtor in Subtier 1 shall pay, on an annual 
     basis, $500,000 if--

       (I) such debtor, including its direct or indirect majority-
     owned subsidiaries, has less than $10,000,000 in prior 
     asbestos expenditures;
       (II) at least 95 percent of such debtors revenues derive 
     from the provision of engineering and construction services; 
     and
       (III) such debtor, including its direct or indirect 
     majority-owned subsidiaries, never manufactured, sold, or 
     distributed asbestos-containing products in the stream of 
     commerce.

       (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.
       (iii) Right of contribution.--

       (I) In general.--Notwithstanding any other provision of 
     this Act, if a direct or indirect majority-owned foreign 
     subsidiary of a debtor participant (with such relationship to 
     the debtor participant as determined on the date of enactment 
     of this Act) is or becomes subject to any foreign insolvency 
     proceedings, and such foreign direct or indirect-majority 
     owned subsidiary is liquidated in connection with such 
     foreign insolvency proceedings (or if the debtor 
     participant's interest in such foreign subsidiary is 
     otherwise canceled or terminated in connection with such 
     foreign insolvency proceedings), the debtor participant shall 
     have a claim against such foreign subsidiary or the estate of 
     such foreign subsidiary in an amount equal to the greater 
     of--

       (aa) the estimated amount of all current and future 
     asbestos liabilities against such foreign subsidiary; or
       (bb) the foreign subsidiary's allocable share of the debtor 
     participant's funding obligations to the Fund as determined 
     by such foreign subsidiary's allocable share of the debtor 
     participant's 2002 gross revenue.

       (II) Determination of claim amount.--The claim amount under 
     subclause (I) (aa) or (bb) shall be determined by a court of 
     competent jurisdiction in the United States.
       (III) Effect on payment obligation.--The right to, or 
     recovery under, any such claim shall not reduce, limit, 
     delay, or otherwise affect the debtor participant's payment 
     obligations under this Act.

       (iv) Maximum annual payment obligation.--Subject to any 
     payments under paragraphs (3), (4), and (5) of this 
     subsection, the annual payment obligation by a debtor under 
     subparagraph (B) of this paragraph shall not exceed 
     $80,000,000.
       (3) Subtier 2.--
       (A) In general.--Notwithstanding paragraph (2), all persons 
     that are debtors that have no material continuing business 
     operations, other than class action trusts under paragraph 
     (6), 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 unencumbered 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.
       (5) Calculation of unencumbered assets.--Unencumbered 
     assets shall be calculated as the Subtier 3 person's total 
     assets, excluding insurance-related assets, jointly held, in 
     trust or otherwise, with a defendant participant, less--
       (A) all allowable administrative expenses;
       (B) allowable priority claims under section 507 of title 
     11, United States Code; and
       (C) allowable secured claims.
       (6) 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 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 60 days 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

[[Page S1288]]

     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: $27,500,000.
       (B) Subtier 2: $24,750,000.
       (C) Subtier 3: $22,000,000.
       (D) Subtier 4: $19,250,000.
       (E) Subtier 5: $16,500,000.
       (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: $16,500,000.
       (B) Subtier 2: $13,750,000.
       (C) Subtier 3: $11,000,000.
       (D) Subtier 4: $8,250,000.
       (E) Subtier 5: $5,500,000.
       (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: $3,850,000.
       (B) Subtier 2: $2,475,000.
       (C) Subtier 3: $1,650,000.
       (D) Subtier 4: $550,000.
       (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.
       (3) Other payment for certain persons and affiliated 
     groups.--
       (A) In general.--Notwithstanding any other provision of 
     this subsection, and if an adjustment authorized by this 
     subsection does not impair the overall solvency of the Fund, 
     any person or affiliated group within Tier VI whose required 
     subtier payment in any given year would exceed such person's 
     or group's average annual expenditure on settlements, and 
     judgments of asbestos disease-related claims over the 8 years 
     before the date of enactment of this Act shall make the 
     payment required of the immediately lower subtier or, if the 
     person's or group's average annual expenditures on 
     settlements and judgments over the 8 years before the date of 
     enactment of this Act is less than $100,000, shall not be 
     required to make a payment under this Act.
       (B) No further adjustment.--Any person or affiliated group 
     that receives an adjustment under this paragraph shall not be 
     eligible to receive any further adjustment under section 
     204(e).
       (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 Act of April 22, 1908 (45 U.S.C. 51 et 
     seq.), commonly known as the Employers' Liability Act, 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, and such settlement, judgment, 
     defense, or indemnity costs constitute 75 percent or more of 
     the total prior asbestos expenditures by the person or 
     affiliated group.
       (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 $6,000,000,000 or more is included in 
     Subtier 1 and shall make annual payments of $11,000,000 to 
     the Fund.
       (4) Subtier 2.--Each person or affiliated group in Tier VII 
     with revenues of less than $6,000,000,000, but not less than 
     $4,000,000,000 is included in Subtier 2 and shall make annual 
     payments of $5,500,000 to the Fund.
       (5) Subtier 3.--Each person or affiliated group in Tier VII 
     with revenues of less than $4,000,000,000, but not less than 
     $500,000,000 is included in Subtier 3 and shall make annual 
     payments of $550,000 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 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.--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 30 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 subsections (e) and (n), 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) Limitation.--For any affiliated group, the total 
     payment in any year, including any guaranteed pay'ment 
     surcharge under subsection (m) and any bankruptcy trust 
     guarantee surcharge under section 222(c), shall not exceed 
     the lesser of $16,702,400 or 1.67024 percent of the revenues 
     of the affiliated group for the most recent fiscal year 
     ending on or prior to December 31, 2002, or for the most 
     recent 12-month fiscal year as of the date the limitation is 
     applied, whichever is greater. For purposes of this 
     subsection, the term ``affiliated group'' shall include any 
     defendant participant that is an ultimate parent. The 
     limitation in this subsection shall not apply to defendant 
     participants in Tier I or to any affiliated group whose 
     revenues for the most recent fiscal year ending on or prior 
     to December 31, 2002, or for the most recent 12-month fiscal 
     year as of the date the limitation applied, whichever is 
     greater, exceeds $1,000,000,000. The revenues of the 
     affiliated group shall be determined in accordance with 
     section 203(a)(2), except for the applicable date. An 
     affiliated group that claims a reduction in its payment in 
     any year shall file with the Administrator, in accordance 
     with procedures prescribed by the Administrator, sufficient 
     infonnation to allow the Administrator to determine the 
     amount of any such reduction in that year. If as a result of 
     the application of the limitation provided in this subsection 
     an affiliated group is exempt from paying all or part of a 
     guaranteed payment surcharge or bankruptcy trust surcharge, 
     then the reduction in the affiliated group's payment 
     obligation due to the limitation in this subsection shall be 
     redistributed in accordance with subsection (m). Nothing in 
     this subsection shall be construed as reducing the minimum 
     aggregate annual payment obligation of defendant participants 
     as provided in section 204(i)(1).''

[[Page S1289]]

       (d) 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.
       (e) 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 
     (j)(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 (k) after payment of the 
     otherwise applicable payment obligation, at the discretion of 
     the Administrator.
       (2) Financial hardship adjustments.--
       (A) In General.--Any defendant participant in any tier may 
     apply for an adjustment under this paragraph at any time 
     during the period in which a payment obligation to the Fund 
     remains outstanding and may qualify for such an adjustment by 
     demonstrating to the satisfaction of the Administrator that 
     the amount of its payment obligation would materially and 
     adversely affect the defendant participant's ability to 
     continue its business and to pay or satisfy its debts 
     generally as and when they come due. Such an adjustment shall 
     be in an amount that in the judgment of the Administrator is 
     reasonably necessary to prevent such material and adverse 
     effect on the defendant participant's ability to continue its 
     business and to pay or satisfy its debts generally as and 
     when they come due.
       (B) Factors to consider.--In determining whether to make an 
     adjustment under subparagraph (A) and the amount thereof, the 
     Administrator shall consider--
       (1) the financial situation of the defendant participant 
     and its affiliated group as shown in historical audited 
     financial statements, including income statement, balance 
     sheet, and statement of cash flow, for the three fiscal years 
     ending immediately prior to the application and projected 
     financial statements for the three fiscal years following the 
     application;
       (2) an analysis of capital spending and fixed charge 
     coverage on a historical basis for the three fiscal years 
     immediately preceding a defendant participant's application 
     and for the three fiscal years following the application;
       (3) any payments or transfers of property made, or 
     obligations incurred, within the preceding 6 years by the 
     defendant participant to or for the benefit of any insider as 
     defined under section 101 (31) of title 11 of the United 
     States Code or any affiliate as defined under section 101(2) 
     of title 11 of the United States Code;
       (4) any prior extraordinary transactions within the 
     preceding 6 years involving the defendant participant, 
     including without limitation payments of extraordinary 
     salaries, bonuses, or dividends;
       (5) the defendant participant's ability to satisfy its 
     payment obligations to the Fund by borrowing or financing 
     with equity capital, or through issuance of securities of the 
     defendant participant or its affiliated group to the Fund;
       (6) the defendant participant's ability to delay 
     discretionary capital spending; and
       (7) any other factor that the Administrator considers 
     relevant.
       (B) Term.--A financial hardship adjustment under this 
     paragraph shall have a term of 5 years unless the 
     Administrator determines at the time the adjustment is made 
     that a shorter or longer period is appropriate in the light 
     of the financial condition of the defendant participant and 
     its affiliated group and other relevant factors, provided 
     that a financial hardship adjustment under this paragraph 
     shall terminate automatically in the event that the defendant 
     participant holding the adjustment files a petition under 
     title 11, United States Code.
       (C) Renewal.--A defendant participant may renew a hardship 
     adjustment upon expiration by demonstrating that it remains 
     justified. Such renewed hardship adjustments shall have a 
     term of 5 years unless the Administrator determines at the 
     time of the renewed adjustment that a shorter or longer 
     period is appropriate in the light of the financial condition 
     of the defendant participant and its affiliated group and 
     other relevant factors, provided that a renewed financial 
     hardship adjustment under this paragraph shall terminate 
     automatically in the event that the defendant participant 
     holding the adjustment files a petition under title 11, 
     United States Code.
       (D) Procedure.--
       (1) The Administrator shall prescribe the information to be 
     submitted in applications for adjustments under this 
     paragraph.
       (2) All audited financial information required under this 
     paragraph shall be as reported by the defendant participant 
     in its 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.). Any defendant participant that 
     does not file reports with the Securities and Exchange 
     Commission or which does not have audited financial 
     statements shall submit financial statements prepared 
     pursuant to generally accepted accounting principles. The 
     chairman, chief executive officer, and chief financial 
     officer of the defendant participant shall certify under 
     penalty of law the completeness and accuracy of the financial 
     statements provided under this sub-paragraph.
       (3) The chairman, chief executive officer, and chief 
     financial officer of the defendant participant shall certify 
     that any projected information and analyses submitted to the 
     Administrator were made in good faith and are reasonable and 
     attainable.
       (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;
       (II) when measured against the likely cost of past and 
     potential future claims in the absence of this Act;
       (III) when compared to the median payment rate for all 
     defendant participants in the same tier; or
       (IV) 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;

       (ii) shall be granted 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, and 
     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;
       (iii) shall be granted a two-tier adjustment reducing the 
     defendant participant's payment obligation based on inequity 
     by demonstrating that not less than 95 percent of such 
     participant's prior asbestos expenditures arose from asbestos 
     claims based on successor liability arising from a merger to 
     which the participant or its predecessor was a party that 
     occurred at least 30 years before the date of enactment of 
     this Act, and that such prior asbestos expenditures exceed 
     the inflation-adjusted value of the assets of the company 
     from which such liability was derived in such merger, and 
     upon such demonstration the Administrator shall grant such 
     adjustment for the life of the Fund and amounts paid by such 
     defendant participant prior to such adjustment in excess of 
     its adjusted payment obligation under this clause shall be 
     credited against next succeeding required payment 
     obligations; and
       (iv) may, subject to the discretion of the Administrator, 
     be exempt from any payment obligation if such defendant 
     participant establishes with the Administrator that--

       (I) such participant has satisfied all past claims; and
       (II) there is no reasonable likelihood in the absence of 
     this Act of any future claims with costs for which the 
     defendant participant might be responsible.

       (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 inequity adjustment account established under 
     subsection (k), 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), 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.

[[Page S1290]]

       (4) Limitation on adjustments.--The aggregate total of 
     inequity adjustments under paragraph (3) in effect in any 
     given year shall not exceed $300,000,000, except to the 
     extent that additional monies are available for such 
     adjustments as a result of carryover of prior years' funds 
     under subsection (k)(3) or as a result of monies being made 
     available in that year under subsection (l)(1)(A).
       (B) the Administrator determines that the $300,000,000 is 
     insufficient and additional adjustments as provided under 
     paragraph (5) are needed to address situations in which a 
     defendant participant would otherwise be rendered insolvent 
     by its payment obligations without such adjustment.
       (6) Rulemaking and advisory panels.--
       (A) Appointment.--The Administrator may 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. The 
     Administrator may adopt rules consistent with this Act to 
     make the determination of hardship and inequity adjustments 
     more efficient and predictable.
       (f) 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.
       (g) 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 (j), 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 (j) 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.
       (h) 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.
       (4) Treatment of certain expenditures.--Notwithstanding any 
     other provision of this Act, where--
       (A) an indemnitor entered into a stock purchase agreement 
     in 1988 that involved the sale of the stock of businesses 
     that produced friction and other products; and
       (B) the stock purchase agreement provided that the 
     indemnitor indemnified the indemnitee and its affiliates for 
     losses arising from various matters, including asbestos 
     claims--
       (i) asserted before the date of the agreement; and
       (ii) filed after the date of the agreement and prior to the 
     10-year anniversary of the stock sale,
     then the prior asbestos expenditures arising from the 
     asbestos claims described in clauses (i) and (ii) shall not 
     be for the account of either the indemnitor or indemnitee.
       (i) Minimum Annual Payments.--
       (1) In general.--The aggregate annual payments of defendant 
     participants to the Fund shall be at least $3,000,000,000 for 
     each calendar year in the first 30 years of the Fund, or 
     until such shorter time as the condition set forth in 
     subsection (a)(2) is attained.
       (2) Guaranteed payment account.--To the extent payments in 
     accordance with sections 202 and 203 (as modified by 
     subsections (b), (e), (g), (h), and (n) of this section) fail 
     in any year to raise at least $3,000,000,000, after 
     applicable reductions or adjustments have been taken 
     according to subsections (e) and (n), the balance needed to 
     meet this required minimum aggregate annual payment shall be 
     obtained from the defendant guaranteed payment account 
     established under subsection (k).
       (j) Procedures for Making Payments.--
       (1) Initial year: tiers ii-vi.--
       (A) In general.--Not later than 90 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 (g);
       (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);
       (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; and
       (v) a signature page personally verifying the truth of the 
     statements and estimates described under this subparagraph, 
     as required under section 404 of the Sarbanes-Oxley Act of 
     2002 (15 U.S.C. 7201 et seq.).
       (B) Relief.--
       (i) In general.--The Administrator shall establish 
     procedures to grant a defendant participant relief from its 
     initial payment obligation if the participant shows that--

       (I) the participant is likely to qualify for a financial 
     hardship adjustment; and
       (II) failure to provide interim relief would cause severe 
     irreparable harm.

       (ii) Judicial relief.--The Administrator's refusal to grant 
     relief under clause (i) is subject to immediate judicial 
     review under section 303.
       (2) Initial year: tier i.--Not later than 60 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--
       (i) a statement of the debtor's 2002 revenues, determined 
     in accordance with section 203(a)(2);
       (ii) for those debtors subject to the payment requirement 
     of section 203(b)(2)(B)(ii), a statement whether its prior 
     asbestos expenditures do not exceed $10,000,000, and a 
     description of its business operations sufficient to show the 
     requirements of that section are met; and
       (iii) 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);
       (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; and
       (G) a signature page personally verifying the truth of the 
     statements and estimates described under this paragraph, as 
     required under section 404 of the Sarbanes-Oxley Act of 2002 
     (15 U.S.C. 7201 et seq.).
       (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

[[Page S1291]]

       (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--
       (i) 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; and
       (ii) that includes a list of all defendant participants 
     notified by the Administrator under subparagraph (A), and 
     provides for 30 days for the submission by the public of 
     comments or information regarding the completeness and 
     accuracy of the list of identified defendant participants.
       (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.--
       (i) Notice to individual.--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.
       (ii) Public notice.--Not later than 7 days after sending 
     the notification of initial determination to defendant 
     participants, the Administrator shall publish in the Federal 
     Register a notice listing the defendant participants that 
     have been sent such notification, and the initial 
     determination identifying the tier and subtier assignment and 
     annual payment obligation of each identified 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 of the 
     Administrator's determination under subsection (e) of a 
     financial hardship or inequity adjustment, and of the 
     Administrator's determination under subsection (n) of a 
     distributor's 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. The Administrator shall 
     publish a notice in the Federal Register of any change in a 
     defendant participant's tier or subtier assignment or payment 
     obligation as a result of a rehearing.
       (k) Defendant 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 required under subsection (i), 
     excess monies up to a maximum of $300,000,000 in any such 
     year shall be placed in a defendant inequity adjustment 
     account established within the Fund by the Administrator.
       (2) Use of account monies.--Monies from the defendant 
     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 demonstrated inequity under subsection (d) 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) is met, 
     for any purpose that the Fund may serve under this Act.
       (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 (e), remaining funds in 
     the account shall be carried forward for use by the 
     Administrator for adjustments in subsequent years.
       (l) Defendant Guaranteed Payment Account.--
       (1) In general.--Subject to subsections (i) and (k), if 
     there are excess monies paid by defendant participants in any 
     given year, including any bankruptcy trust credits that may 
     be due under section 222(d), such monies--
       (A) at the discretion of the Administrator, may be used to 
     provide additional adjustments under subsection (e), 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 required 
     under subsection (i), after applicable reductions or 
     adjustments have been taken according to subsections (e) and 
     (m) is reached each year; and
       (B) if the condition set forth in subsection (a)(2) is met, 
     for any purpose that the Fund may serve under this Act.
       (n) Adjustments for Distributors.--
       (1) Definition.--In this subsection, the term 
     ``distributor'' means a person--
       (A) whose prior asbestos expenditures arise exclusively 
     from the sale of products manufactured by others;
       (B) who did not prior to December 31, 2002, sell raw 
     asbestos or a product containing more than 95 percent 
     asbestos by weight;
       (C) whose prior asbestos expenditures did not arise out 
     of--
       (i) the manufacture, installation, repair, reconditioning, 
     maintaining, servicing, constructing, or remanufacturing of 
     any product;
       (ii) the control of the design, specification, or 
     manufacture of any product; or
       (iii) the sale or resale of any product under, as part of, 
     or under the auspices of, its own brand, trademark, or 
     service mark; and
       (D) who is not subject to assignment under section 202 to 
     Tier I, II, III or VII.
       (2) Tier reassignment for distributors.--
       (A) In general.--Notwithstanding section 202, the 
     Administrator shall assign a distributor to a Tier for 
     purposes of this title under the procedures set forth in this 
     paragraph.
       (B) Designation.--After a final determination by the 
     Administrator under section 204(j), any person who is, or any 
     affiliated group in which every member is, a distributor may 
     apply to the Administrator for adjustment of its Tier 
     assignment under this subsection. Such application shall be 
     prepared in accordance with such procedures as

[[Page S1292]]

     the Administrator shall promulgate by rule. Once the 
     Administrator designates a person or affiliated group as a 
     distributor under this subsection, such designation and the 
     adjustment of tier assignment under this subsection are 
     final.
       (C) Payments.--Any person or affiliated group that seeks 
     adjustment of its Tier assignment under this subsection shall 
     pay all amounts required of it under this title until a final 
     determination by the Administrator is made under this 
     subsection. Such payments may not be stayed pending any 
     appeal. The Administrator shall grant any person or 
     affiliated group a refund or credit of any payments made if 
     such adjustment results in a lower payment obligation.
       (D) Adjustment.--Subject to paragraph (3), any person or 
     affiliated group that the Administrator has designated as a 
     distributor under this subsection shall be given an 
     adjustment of Tier assignment as follows:
       (i) A distributor that but for this subsection would be 
     assigned to Tier IV shall be deemed assigned to Tier V.
       (ii) A distributor that but for this subsection would be 
     assigned to Tier V shall be deemed assigned to Tier VI.
       (iii) A distributor that but for this subsection would be 
     assigned to Tier VI shall be deemed assigned to no Tier and 
     shall have no obligation to make any payment to the Fund 
     under this Act.
       (E) Exclusive to inequity adjustment.--Any person or 
     affiliated group designated by the Administrator as a 
     distributor under this subsection shall not be eligible for 
     an inequity adjustment under subsection 204(e).
       (3) Limitation on adjustments.--The aggregate total of 
     distributor adjustments under this subsection in effect in 
     any given year shall not exceed $50,000,000. If the aggregate 
     total of distributors adjustments under this subsection would 
     otherwise exceed $50,000,000, then each distributor's 
     adjustment shall be reduced pro rata until the aggregate of 
     all adjustments equals $50,000,000.
       (4) Rehearing.--A defendant participant has a right to 
     obtain a rehearing of the Administrator's determination on an 
     adjustment under this subsection under the procedures 
     prescribed in subsection (j)(10).

     SEC. 205. STEPDOWNS AND FUNDING HOLIDAYS.

       (a) Stepdowns.--
       (1) In general.--Subject to paragraph (2), the minimum 
     aggregate annual funding obligation under section 204(i) 
     shall be reduced by 10 percent of the initial minimum 
     aggregate funding obligation at the end of the tenth, 
     fifteenth, twentieth, and twenty-fifth years after the date 
     of enactment of this Act. Except as otherwise provided in 
     this paragraph, the reductions under this paragraph shall be 
     applied on an equal pro rata basis to the funding obligations 
     of all defendant participants.
       The reductions under this subsection shall not apply to 
     defendant participants in Tier I, subtiers 2 and 3, and class 
     action trusts. For defendant participants whose payment 
     obligation has been limited under section 204(c) or who have 
     received a financial hardship adjustment under section 
     204(e)(2), aggregate potential reductions under this 
     subsection shall be calculated on the basis of the defendant 
     participant's tier and subtier without regard to such 
     limitation or adjustment. If the aggregate potential 
     reduction under this subsection exceeds the reduction in the 
     defendant participant's payment obligation due to the 
     limitation under section 204(c) and the financial hardship 
     adjustment under section 204(e)(2), then the defendant 
     participant's payment obligations shall be further reduced by 
     the difference between the potential reduction provided under 
     this subsection and the reductions that the defendant 
     participant has already received due to the application of 
     the limitation provided in section 204(c) and the financial 
     hardship adjustment provided under section 204(e)(2). If the 
     reduction in the defendant participant's payment obligation 
     due to the limitation provided in section 204(c) and any the 
     financial hardship adjustment provided under section 
     204(e)(2) exceeds the amount of the reduction provided in 
     this subsection, then the defendant participant's payment 
     obligation shall not be further reduced under this paragraph.
       (2) Limitation.--The Administrator shall suspend, cancel, 
     reduce, or delay any reduction under paragraph (1) if at any 
     time the Administrator finds, in accordance with subsection 
     (c), that such action is necessary and appropriate to ensure 
     that the assets of the Fund and expected future payments 
     remain sufficient to satisfy the Fund's anticipated 
     obligations.
       (b) Funding Holidays.--
       (1) In general.--If the Administrator determines, at any 
     time after 10 years following the date of enactment of this 
     Act, that the assets of the Fund at the time of such 
     determination and expected future payments, taking into 
     consideration any reductions under subsection (a), are 
     sufficient to satisfy the Fund's anticipated obligations 
     without the need for all, or any portion of, that year's 
     payment otherwise required under this subtitle, the 
     Administrator shall reduce or waive all or any part of the 
     payments required from defendant participants for that year.
       (2) Annual review.--The Administrator shall undertake the 
     review required by this subsection and make the necessary 
     determination under paragraph (1) every year.
       (3) Limitations on funding holidays.--Any reduction or 
     waiver of the defendant participants' funding obligations 
     shall--
       (A) be made only to the extent the Administrator determines 
     that the Fund will still be able to satisfy all of its 
     anticipated obligations; and
       (B) be applied on an equal pro rata basis to the funding 
     obligations of all defendant participants, except as 
     otherwise provided under this paragraph. The reductions or 
     waivers provided under this subsection shall not apply to 
     defendant participants in Tier I, subtiers 2 and 3, and class 
     action trusts. For defendant participants whose payment 
     obligation has been limited under section 204(c0 or who have 
     received a financial hardship adjustment under section 
     204(e)(2), aggregate potential reductions or waivers under 
     this subsection shall be calculated on the basis of the 
     defendant participant's tier and subtier without regard to 
     such limitation or adjustment. If the aggregate potential 
     reductions or waivers under this subsection exceed the 
     reduction in the defendant participant's payment obligation 
     due to the limitation under section 204(c) and the financial 
     hardship adjustment under section 204(e)(2), then the 
     defendant participant's payment obligation shall be further 
     reduced by the difference between the potential reductions or 
     waivers provided under this subsection and the reductions 
     that the defendant participant has already received due to 
     the application of the limitation provided in section 204(c) 
     and the financial hardship adjustment provided under section 
     204(e)(2). If the reduction in the defendant participant's 
     payment obligation due to the limitation provided in section 
     204(c) and any the financial hardship adjustment provided 
     under section 204(e)(2) exceeds the amount of the reductions 
     or waivers provided in this subsection, then the defendant 
     participant's payment obligation shall not be further reduced 
     under this paragraph.
       (4) New information.--If at any time the Administrator 
     determines that a reduction or waiver under this section may 
     cause the assets of the Fund and expected future payments to 
     decrease to a level at which the Fund may not be able to 
     satisfy all of its anticipated obligations, the Administrator 
     shall revoke all or any part of such reduction or waiver to 
     the extent necessary to ensure that the Fund's obligations 
     are met. Such revocations shall be applied on an equal pro 
     rata basis to the funding obligations of all defendant 
     participants, except defendant participants in Subtiers 2 and 
     3 of Tier I and class action trusts, for that year.
       (c) Certification.--
       (1) In general.--Before suspending, canceling, reducing, or 
     delaying any reduction under subsection (a) or granting or 
     revoking a reduction or waiver under subsection (b), the 
     Administrator shall certify that the requirements of this 
     section are satisfied.
       (2) Notice and comment.--Before making a final 
     certification under this subsection, the Administrator shall 
     publish a notice in the Federal Register of a proposed 
     certification and a statement of the basis therefor and 
     provide in such notice for a public comment period of 30 
     days.
       (3) Final certification.--
       (A) In general.--The Administrator shall publish a notice 
     of the final certification in the Federal Register after 
     consideration of all comments submitted under paragraph (2).
       (B) Written notice.--Not later than 30 days after 
     publishing any final certification under subparagraph (A), 
     the Administrator shall provide each defendant participant 
     with written notice of that defendant's funding obligation 
     for that year.

     SEC. 206. ACCOUNTING TREATMENT.

       Defendant participants payment obligations to the Fund 
     shall be subject to discounting under the applicable 
     accounting guidelines for generally accepted accounting 
     purposes and statutory accounting purposes for each defendant 
     participant. This section shall in no way reduce the amount 
     of monetary payments to the Fund by defendant participants as 
     required under section 202(a)(2).

                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, 2003.

     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

[[Page S1293]]

     member of the Commission shall be a shareholder of any 
     insurer participant. No member of the Commission shall be a 
     former officer or director, or a former employee or former 
     shareholder of any insurer participant who was such an 
     employee, shareholder, officer, or director at any time 
     during the 2-year period ending on the date of the 
     appointment, unless that is fully disclosed before 
     consideration in the Senate of the nomination for appointment 
     to the Commission.
       (ii) Definition.--In clause (i), the term ``shareholder'' 
     shall not include a broadly based mutual fund that includes 
     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 the members of the Commission.
       (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 the first 5 years of the life 
     of the Fund and any subsequent years as provided in section 
     405(f) for any reduction in an insurer participant's annual 
     allocated amount caused by the granting of a financial 
     hardship or exceptional circumstance adjustment under this 
     section, and any amount by which aggregate insurer payments 
     fall below the level required under paragraph (3)(C) by 
     reason of the failure or refusal of any insurer participant 
     to make a required payment, or for any other reason that 
     causes such payments to fall below the level required under 
     paragraph (3)(C). The Commission shall conduct a thorough 
     study (within the time limitations under this subparagraph) 
     of the accuracy of the reserve allocation of each insurer 
     participant, and may request information from the Securities 
     and Exchange Commission or any State regulatory agency. 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.
       (D) Issuers of finite risk policies.--
       (i) In general.--The issuer of any policy of retrospective 
     reinsurance purchased by an insurer participant or its 
     affiliate after 1990 that provides for a risk or loss 
     transfer to insure for asbestos losses and other losses (both 
     known and unknown), including those policies commonly 
     referred to as ``finite risk'', ``aggregate stop loss'', 
     ``aggregate excess of loss'', or ``loss portfolio transfer'' 
     policies, shall be obligated to make payments required under 
     this Act directly to the Fund on behalf of the insurer 
     participant who is the beneficiary of such policy, subject to 
     the underlying retention and the limits of liability 
     applicable to such policy.
       (ii) Payments.--Payments to the Fund required under this 
     Act shall be treated as loss payments for asbestos bodily 
     injury (as if such payments were incurred as liabilities 
     imposed in the tort system) and shall not be subject to 
     exclusion under policies described under clause (i) as a 
     liability with respect to tax or assessment. Within 90 days 
     after the scheduled date to make an annual payment to the 
     Fund, the insurer participant shall, at its discretion, 
     direct the reinsurer issuing such policy to pay all or a 
     portion of the annual payment directly to the Fund up to the 
     full applicable limits of liability under the policy. The 
     reinsurer issuing such policy shall be obligated to make such 
     payments directly to the Fund and shall be subject to the 
     enforcement provisions under section 223. The insurer 
     participant shall remain obligated to make payment to the 
     Fund of that portion of the annual payment not directed to 
     the issuer of such reinsurance policy.
       (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, less any bankruptcy 
     trust credits under section 222(d).
       (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, insures the asbestos 
     liability, directly or indirectly, of (and that arises out of 
     the manufacture, sale, distribution or installation of 
     materials or products by, or other conduct 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 of criteria.--
       (A) Inclusion in insurer participant category.--
       (i) In general.--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.
       (ii) Inapplicability of section 202.--Since insurers may be 
     subject in certain jurisdictions to direct action suits, and 
     it is not the intent of this Act to impose upon an insurer, 
     due to its operation as an insurer, payment obligations to 
     the Fund in situations where the insurer is the subject of a 
     direct action, no insurer subject to mandatory payments under 
     this section shall also be liable for payments to the Fund as 
     a defendant participant under section 202.
       (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

[[Page S1294]]

     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 years 1 and 2, $2,700,000,000 annually.
       (ii) For years 3 through 5, $5,075,000,000 annually.
       (iii) For years 6 through 27, $1,147,000,000 annually.
       (iv) For year 28, $166,000,000.
       (D) Certain runoff entities.--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 subparagraphs (A) and 
     (C) of subsection (b)(4); or
       (III) other exceptional circumstances.

     The Commission may determine whether to grant an adjustment 
     and the size of any such adjustment, but except as provided 
     under paragraph (1)(B), subsection (f)(3), and section 
     405(f), any such adjustment shall not affect the aggregate 
     payment obligations of insurer participants specified in 
     paragraph (2)(A) and subparagraph (C) of this paragraph.
       (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.
       (F) Funding holidays.--
       (i) In general.--If the Administrator determines, at any 
     time after 10 years following the date of enactment of this 
     Act, that the assets of the Fund at the time of such 
     determination and expected future payments are sufficient to 
     satisfy the Fund's anticipated obligations without the need 
     for all, or any portion of, that year's payment otherwise 
     required under this subtitle, the Administrator shall reduce 
     or waive all or any part of the payments required from 
     insurer participants for that year.
       (ii) Annual review.--The Administrator shall undertake the 
     review required by this subsection and make the necessary 
     determination under clause (i) every year.
       (iii) Limitations of funding holidays.--Any reduction or 
     waiver of the insurer participants' funding obligations 
     shall--

       (I) be made only to the extent the Administrator determines 
     that the Fund will still be able to satisfy all of its 
     anticipated obligations; and
       (II) be applied on an equal pro rata basis to the funding 
     obligations of all insurer participants for that year.

       (iv) New information.--If at any time the Administrator 
     determines that a reduction or waiver under this section may 
     cause the assets of the Fund and expected future payments to 
     decrease to a level at which the Fund may not be able to 
     satisfy all of its anticipated obligations, the Administrator 
     shall revoke all or any part of such reduction or waiver to 
     the extent necessary to ensure that the Fund's obligations 
     are met. Such revocations shall be applied on an equal pro 
     rata basis to the funding obligations of all insurer 
     participants for that year.
       (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--
       (i) requiring any person who may be an insurer participant 
     (as determined by criteria outlined in the notice) to submit 
     such information; and
       (ii) that includes a list of all insurer participants 
     notified by the Commission under subparagraph (A), and 
     provides for 30 days for the submission of comments or 
     information regarding the completeness and accuracy of the 
     list of identified insurer participants.
       (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.--
       (i) Notice to insurers.--Not later than 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.
       (ii) Public notice.--Not later than 7 days after sending 
     the notification of initial determination to insurer 
     participants, the Commission shall publish in the Federal 
     Register a notice listing the insurer participants that have 
     been sent such notification, and the initial determination on 
     the payment obligation of each identified participant.
       (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 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 date of 
     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

[[Page S1295]]

     United States, or other reinsurer participants, may submit an 
     allocation agreement, approved by all of the participants in 
     the applicable group, to the Commission.
       (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) Amount of interim payment.--Within 90 days after the 
     date of enactment of this Act, insurer participants shall 
     make an aggregate payment to the Fund not to exceed 50 
     percent of the aggregate funding obligation specified under 
     subsection (a)(3)(C) for year 1.
       (2) Reserve information.--Within 30 days after the date of 
     enactment of this Act, each insurer participant shall submit 
     to the Administrator a certified statement of its net held 
     reserves for asbestos liabilities as of December 31, 2004.
       (3) Allocation of interim payment.--The Administrator shall 
     allocate the interim payment among the individual insurer 
     participants on an equitable basis using the net held 
     asbestos reserve information provided by insurer participants 
     under subsection (a)(3)(B). Within 60 days after the date of 
     enactment of this Act, the Administrator shall publish in the 
     Federal Register the name of each insurer participant, and 
     the amount of the insurer participant's allocated share of 
     the interim payment. The use of net held asbestos reserves as 
     the basis to determine an interim allocation shall not be 
     binding on the Administrator in the determination of an 
     appropriate final allocation methodology under this section. 
     All payments required under this paragraph 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 under subsection 
     (a)(3)(E).
       (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, consistent 
     with subsection (a)(1)(B), 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) Credits for shortfall assessments.--If insurer 
     participants are required during the first 5 years of the 
     life of the Fund to make up any shortfall in required insurer 
     payments under subsection (a)(1)(B), then, beginning in year 
     6, the Administrator shall grant each insurer participant a 
     credit against its annual required payments during the 
     applicable years that in the aggregate equal the amount of 
     shortfall assessments paid by such insurer participant during 
     the first 5 years of the life of the Fund. The credit shall 
     be prorated over the same number of years as the number of 
     years during which the insurer participant paid a shortfall 
     assessment. Insurer participants which did not pay all 
     required payments to the Fund during the first 5 years of the 
     life of the Fund shall not be eligible for a credit. The 
     Administrator shall not grant a credit for shortfall 
     assessments imposed under section 405(f).
       (4) 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) Accounting Treatment.--Insurer participants' payment 
     obligations to the Fund shall be subject to discounting under 
     the applicable accounting guidelines for generally accepted 
     accounting purposes and statutory accounting purposes for 
     each insurer participant. This subsection shall in no way 
     reduce the amount of monetary payments to the Fund by insurer 
     participants as required under subsection (a).
       (h) 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 and State Agencies.--The 
     Commission may secure directly from any Federal or State 
     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

[[Page S1296]]

     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);
       (4) the remaining obligations to the asbestos trust of a 
     debtor and the class action trust under section 405(g)(8); 
     and
       (5) 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.
       (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 during 
     the subsequent 2 years.
       (4) Repayment obligations.--Repayment of monies borrowed by 
     the Administrator under this subsection shall be repaid in 
     full by the Fund contributors and is limited solely to 
     amounts available, present or future, in the Fund.
       (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 IX.
       (B) A Lung Cancer Account, which shall be used solely to 
     make payments to claimants eligible for an award under the 
     criteria of Level VIII.
       (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) Identity of Certain Defendant Participants; 
     Transparency.--
       (1) Submission of information.--Not later than 60 days 
     after the date of enactment of this Act, any person who, 
     acting in good faith, has knowledge that such person or such 
     person's affiliated group has prior asbestos expenditures of 
     $1,000,000 or greater, shall submit to the Administrator--
       (A) either the name of such person, or such person's 
     ultimate parent; and
       (B) the likely tier to which such person or affiliated 
     group may be assigned under this Act.
       (2) Publication.--Not later than 20 days after the end of 
     the 60-day period referred to in paragraph (1), the 
     Administrator or Interim Administrator, if the Administrator 
     is not yet appointed, shall publish in the Federal Register a 
     list of submissions required by this subsection, including 
     the name of such persons or ultimate parents and the likely 
     tier to which such persons or affiliated groups may be 
     assigned. After publication of such list, any person who, 
     acting in good faith, has knowledge that any other person has 
     prior asbestos expenditures of $1,000,000 or greater may 
     submit to the Administrator or Interim Administrator 
     information on the identity of that person and the person's 
     prior asbestos expenditures.
       (f) No Private Right of Action.--Except as provided in 
     sections 203(b)(2)(D)(ii) and 204(g)(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 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.
       (d) Bankruptcy Trust Credits.--
       (1) In general.--Notwithstanding any other provision of 
     this Act, but subject to paragraph (2) of this subsection, 
     the Administrator shall provide a credit toward the aggregate 
     payment obligations under sections 202(a)(2) and 212(a)(2)(A) 
     for assets received by the Fund from any bankruptcy trust 
     established under a plan of reorganization confirmed and 
     substantially consummated after July 31, 2004.
       (2) Allocation of credits.--The Administrator shall 
     allocate, for each such bankruptcy trust, the credits for 
     such assets between the defendant and insurer aggregate 
     payment obligations as follows:
       (A) Defendant participants.--The aggregate amount that all 
     persons other than insurers contributing to the bankruptcy 
     trust would have been required to pay as Tier I defendants 
     under section 203(b) if the plan of reorganization under 
     which the bankruptcy trust was established had not been 
     confirmed and substantially consummated and the proceeding 
     under chapter 11 of title 11, United

[[Page S1297]]

     States Code, that resulted in the establishment of the 
     bankruptcy trust had remained pending as of the date of 
     enactment of this Act.
       (B) Insurer participants.--The aggregate amount of all 
     credits to which insurers are entitled to under section 
     202(c)(4)(A) of the Act.

     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 a 30-
     day 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, including a refusal or failure to provide the 
     information required under section 204 needed to determine 
     liability, the Administrator may bring a civil action in any 
     appropriate United States District Court, 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;
       (C) for temporary, preliminary, or permanent relief; or
       (D) to enforce a subpoena issued under section 204(i)(9) to 
     compel the production of documents necessary to determine 
     liability.
       (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 pay any contribution required by this 
     Act, then, in addition to any other penalties imposed by this 
     Act, the Administrator shall 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 unless and until it complies. If any direct 
     insurer or reinsurer refuses to furnish any information 
     requested by the Administrator, 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 unless and until it 
     complies. 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 after the date of the Administrator's 
     determination of default. 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(j)(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 2006.''.
       (j) Proposed Transactions.--
       (1) Notice of proposed transaction.--Any participant that 
     has taken any action to effectuate a proposed transaction or 
     a proposed series of transactions under which a significant 
     portion of such participant's assets, properties or business 
     will, if consummated as proposed, be, directly or indirectly, 
     transferred by any means (including, without limitation, by 
     sale, dividend, contribution to a subsidiary or split-off) to 
     1 or more persons other than the participant shall provide 
     written notice to the Administrator of such proposed 
     transaction (or proposed series of transactions). Upon the 
     request of such participant, and for so long as the 
     participant shall not publicly disclose the transaction or 
     series of transactions and the Administrator shall not 
     commence any action under paragraph (6), the Administrator 
     shall treat any such notice as confidential commercial 
     information under section 552 of title 5, United States Code.
       (2) Timing of notice and related actions.--
       (A) In general.--Any notice that a participant is required 
     to give under paragraph (1) shall be given not later than 30 
     days before the date of consummation of the proposed 
     transaction or the first transaction to occur in a proposed 
     series of transactions.
       (B) Other notifications.--
       (i) In general.--Not later than the date in any year by 
     which a participant is required to make its contribution to 
     the Fund, the participant shall deliver to the Administrator 
     a written certification stating that--

       (I) the participant has complied during the period since 
     the last such certification or the date of enactment of this 
     Act with the notice requirements set forth in this 
     subsection; or
       (II) the participant was not required to provide any notice 
     under this subsection during such period.

       (ii) Summary.--The Administrator shall include in the 
     annual report required to be submitted to Congress under 
     section 405 a summary of all such notices (after removing all 
     confidential identifying information) received during the 
     most recent fiscal year.

[[Page S1298]]

       (C) Notice completion.--The Administrator shall not 
     consider any notice given under paragraph (1) as given until 
     such time as the Administrator receives substantially all the 
     information required by this subsection.
       (3) Contents of notice.--
       (A) In general.--The Administrator shall determine by rule 
     or regulation the information to be included in the notice 
     required under this subsection, which shall include such 
     information as may be necessary to enable the Administrator 
     to determine whether--
       (i) the person or persons to whom the assets, properties or 
     business are being transferred in the proposed transaction 
     (or proposed series of transactions) should be considered to 
     be the successor in interest of the participant for purposes 
     of this Act, or
       (ii) the proposed transaction (or proposed series of 
     transactions) would, if consummated, be subject to avoidance 
     by a trustee under section 544(b) or 548 of title 11, United 
     States Code, as if, but whether or not, the participant is 
     subject to a case under title 11, United States Code.
       (B) Statements.--The notice shall also include--
       (i) a statement by the participant as to whether it 
     believes any person will or has become a successor in 
     interest to the participant for purposes of this Act and, if 
     so, the identity of that person; and
       (ii) a statement by the participant as to whether that 
     person has acknowledged that it will or has become a 
     successor in interest for purposes of this Act.
       (4) Definition.--In this subsection, the term ``significant 
     portion of the assets, properties or business of a 
     participant'' means assets (including, without limitation, 
     tangible or intangible assets, securities and cash), 
     properties or business of such participant (or its affiliated 
     group, to the extent that the participant has elected to be 
     part of an affiliated group under section 204(g)) that, 
     together with any other asset, property or business 
     transferred by such participant in any of the previous 
     completed 5 fiscal years of such participant (or, as 
     appropriate, its affiliated group), and as determined in 
     accordance with United States generally accepted accounting 
     principles as in effect from time to time--
       (A) generated at least 40 percent of the revenues of such 
     participant (or its affiliated group);
       (B) constituted at least 40 percent of the assets of such 
     participant (or its affiliated group);
       (C) generated at least 40 percent of the operating cash 
     flows of such participant (or its affiliated group); or
       (D) generated at least 40 percent of the net income or loss 
     of such participant (or its affiliated group),

     as measured during any of such 5 previous fiscal years.
       (5) Consummation of transaction.--Any proposed transaction 
     (or proposed series of transactions) with respect to which a 
     participant is required to provide notice under paragraph (1) 
     may not be consummated until at least 30 days after delivery 
     to the Administrator of such notice, unless the Administrator 
     shall earlier terminate the notice period. The Administrator 
     shall endeavor whenever possible to terminate a notice period 
     at the earliest practicable time.
       (6) Right of action.--
       (A) In general.--Notwithstanding section 221(f), if the 
     Administrator or any participant believes that a participant 
     proposes to engage or has engaged, directly or indirectly, 
     in, or is the subject of, a transaction (or series of 
     transactions)--
       (i) involving a person or persons who, as a result of such 
     transaction (or series of transactions), may have or may 
     become the successor in interest or successors in interest of 
     such participant, where the status or potential status as a 
     successor in interest has not been stated and acknowledged by 
     the participant and such person; or
       (ii) that may be subject to avoidance by a trustee under 
     section 544(b) or 548 of title 11, United States Code, as if, 
     but whether or not, the participant is a subject to a case 
     under title 11, United States Code,

     then the Administrator or such participant may, as a deemed 
     creditor under applicable law, bring a civil action in an 
     appropriate forum against the participant or any other person 
     who is either a party to the transaction (or series of 
     transactions) or the recipient of any asset, property or 
     business of the participant.
       (B) Relief allowed.--In any action commenced under this 
     subsection, the Administrator or a participant, as 
     applicable, may seek--
       (i) with respect to a transaction (or series of 
     transactions) referenced in clause (i) of subparagraph (A), a 
     declaratory judgment regarding whether such person will or 
     has become the successor in interest of such participant; or
       (ii) with respect to a transaction (or series of 
     transactions) referenced in clause (ii) of subparagraph (A)--

       (I) a temporary restraining order or a preliminary or 
     permanent injunction against such transaction (or series of 
     transactions); or
       (II) such other relief regarding such transaction (or 
     series of transactions) as the court determines to be 
     necessary to ensure that performance of a participant's 
     payment obligations under this Act is not materially impaired 
     by reason of such transaction (or series of transactions).

       (C) Applicability.--If the Administrator or a participant 
     wishes to challenge a statement made by a participant that a 
     person will not or has not become a successor in interest for 
     purposes of this Act, then this paragraph shall be the 
     exclusive means by which the determination of whether such 
     person will or has become a successor in interest of the 
     participant shall be made. This paragraph shall not preempt 
     any other rights of any person under applicable Federal or 
     State law.
       (D) Venue.--Any action under this paragraph shall be 
     brought in any appropriate United States district court or, 
     to the extent necessary to obtain complete relief, any other 
     appropriate forum outside of the United States.
       (7) Rules and regulations.--The Administrator may 
     promulgate regulations to effectuate the intent of this 
     subsection, including regulations relating to the form, 
     timing and content of notices.

     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.

     SEC. 225. EDUCATION, CONSULTATION, SCREENING, AND MONITORING.

       (a) In General.--The Administrator shall establish a 
     program for the education, consultation, medical screening, 
     and medical monitoring of persons with exposure to asbestos. 
     The program shall be funded by the Fund.
       (b) Outreach and Education.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall establish an 
     outreach and education program, including a website designed 
     to provide information about asbestos-related medical 
     conditions to members of populations at risk of developing 
     such conditions.
       (2) Information.--The information provided under paragraph 
     (1) shall include information about--
       (A) the signs and symptoms of asbestos-related medical 
     conditions;
       (B) the value of appropriate medical screening programs; 
     and
       (C) actions that the individuals can take to reduce their 
     future health risks related to asbestos exposure.
       (3) Contracts.--Preference in any contract under this 
     subsection shall be given to providers that are existing 
     nonprofit organizations with a history and experience of 
     providing occupational health outreach and educational 
     programs for individuals exposed to asbestos.
       (c) Medical Screening Program.--
       (1) Establishment of program.--Not sooner than 18 months or 
     later than 24 months after the Administrator certifies that 
     the Fund is fully operational and processing claims at a 
     reasonable rate, the Administrator shall adopt guidelines 
     establishing a medical screening program for individuals at 
     high risk of asbestos-related disease resulting from an 
     asbestos-related disease. In promulgating such guidelines, 
     the Administrator shall consider the views of the Advisory 
     Committee on Asbestos Disease Compensation, the Medical 
     Advisory Committee, and the public.
       (2) Eligibility criteria.--
       (A) In general.--The guidelines promulgated under this 
     subsection shall establish criteria for participation in the 
     medical screening program.
       (B) Considerations.--In promulgating eligibility criteria 
     the Administrator shall take into consideration all factors 
     relevant to the individual's effective cumulative exposure to 
     asbestos, including--
       (i) any industry in which the individual worked;
       (ii) the individual's occupation and work setting;
       (iii) the historical period in which exposure took place;
       (iv) the duration of the exposure;
       (v) the intensity and duration of non-occupational 
     exposures;
       (vi) the intensity and duration of exposure to risk levels 
     of naturally occurring asbestos as defined by the 
     Environmental Protection Agency; and
       (vii) any other factors that the Administrator determines 
     relevant.
       (3) Protocols.--The guidelines developed under this 
     subsection shall establish protocols for medical screening, 
     which shall include--
       (A) administration of a health evaluation and work history 
     questionnaire;
       (B) an evaluation of smoking history;
       (C) a physical examination by a qualified physician with a 
     doctor-patient relationship with the individual;
       (D) a chest x-ray read by a certified B-reader as defined 
     under section 121(a)(4); and
       (E) pulmonary function testing as defined under section 
     121(a)(13).
       (4) Frequency.--The Administrator shall establish the 
     frequency with which medical screening shall be provided or 
     be made available to eligible individuals, which shall be not 
     less than every 5 years.
       (5) Provision of services.--The Administrator shall provide 
     medical screening to eligible individuals directly or by 
     contract with another agency of the Federal Government,

[[Page S1299]]

     with State or local governments, or with private providers of 
     medical services. The Administrator shall establish strict 
     qualifications for the providers of such services, and shall 
     periodically audit the providers of services under this 
     subsection, to ensure their integrity, high degree of 
     competence, and compliance with all applicable technical and 
     professional standards. No provider of medical screening 
     services may have earned more than 15 percent of their income 
     from the provision of services of any kind in connection with 
     asbestos litigation in any of the 3 years preceding the date 
     of enactment of this Act. All contracts with providers of 
     medical screening services under this subsection shall 
     contain provisions for reimbursement of screening services at 
     a reasonable rate and termination of such contracts for cause 
     if the Administrator determines that the service provider 
     fails to meet the qualifications established under this 
     subsection.
       (6) Limitation of compensation for services.--The 
     compensation required to be paid to a provider of medical 
     screening services for such services furnished to an eligible 
     individual shall be limited to the amount that would be 
     reimbursed at the time of the furnishing of such services 
     under title XVIII of the Social Security Act (42 U.S.C. 1395 
     et seq.) for similar services if such services are covered 
     under title XVIII of the Social Security Act (42 U.S.C. 1395 
     et seq.).
       (7) Funding; periodic review.--
       (A) Funding.--The Administrator shall make such funds 
     available from the Fund to implement this section, with a 
     minimum of $5,000,000 but not more than $10,000,000 each year 
     in each of the 5 years following the effective date of the 
     medical screening program. Notwithstanding the preceding 
     sentence, the Administrator shall suspend the operation of 
     the program or reduce its funding level if necessary to 
     preserve the solvency of the Fund.
       (B) Review.--The Administrator may reduce the amount of 
     funding below $5,000,000 each year if the program is fully 
     implemented. The Administrator's first annual report under 
     section 405 following the close of the 4th year of operation 
     of the medical screening program shall include an analysis of 
     the usage of the program, its cost and effectiveness, its 
     medical value, and the need to continue that program for an 
     additional 5-year period. The Administrator shall also 
     recommend to Congress any improvements that may be required 
     to make the program more effective, efficient, and 
     economical, and shall recommend a funding level for the 
     program for the 5 years following the period of initial 
     funding referred to under subparagraph (A).
       (d) Limitation.--In no event shall the total amount 
     allocated to the medical screening program established under 
     this subsection over the lifetime of the Fund exceed 
     $100,000,000.
       (e) Medical Monitoring Program and Protocols.--
       (1) In general.--The Administrator shall establish 
     procedures for a medical monitoring program for persons 
     exposed to asbestos who have been approved for level I 
     compensation under section 131.
       (2) Procedures.--The procedures for medical monitoring 
     shall include--
       (A) specific medical tests to be provided to eligible 
     individuals and the periodicity of those tests, which shall 
     initially be provided every 3 years and include--
       (i) administration of a health evaluation and work history 
     questionnaire;
       (ii) physical examinations, including blood pressure 
     measurement, chest examination, and examination for clubbing;
       (iii) AP and lateral chest x-ray; and
       (iv) spirometry performed according to ATS standards;
       (B) qualifications of medical providers who are to provide 
     the tests required under subparagraph (A); and
       (C) administrative provisions for reimbursement from the 
     Fund of the costs of monitoring eligible claimants, including 
     the costs associated with the visits of the claimants to 
     physicians in connection with medical monitoring, and with 
     the costs of performing and analyzing the tests.
       (f) Contracts.--The Administrator may enter into contracts 
     with qualified program providers that would permit the 
     program providers to undertake large-scale medical screening 
     and medical monitoring programs by means of subcontracts with 
     a network of medical providers, or other health providers.
       (g) Review.--Not later than 5 years after the date of 
     enactment of this Act, and every 5 years thereafter, the 
     Administrator shall review, and if necessary update, the 
     protocols and procedures established under this section.

     SEC. 226. NATIONAL MESOTHELIOMA RESEARCH AND TREATMENT 
                   PROGRAM.

       (a) In General.--There is established the National 
     Mesothelioma Research and Treatment Program (referred to in 
     this section as the ``Program'') to investigate and advance 
     the detection, prevention, treatment, and cure of malignant 
     mesothelioma.
       (b) Mesothelioma Centers.--
       (1) In general.--The Administrator shall make available 
     $1,500,000 from the Fund, and the Director of the National 
     Institutes of Health shall make available $1,000,000 from 
     amounts available to the Director, for each of fiscal years 
     2006 through 2015, for the establishment of each of 10 
     mesothelioma disease research and treatment centers.
       (2) Requirements.--The Director of the National Institutes 
     of Health, in consultation with the Medical Advisory 
     Committee, shall conduct a competitive peer review process to 
     select sites for the centers described in paragraph (1). The 
     Director shall ensure that sites selected under this 
     paragraph are--
       (A) geographically distributed throughout the United States 
     with special consideration given to areas of high incidence 
     of mesothelioma disease;
       (B) closely associated with Department of Veterans Affairs 
     medical centers, in order to provide research benefits and 
     care to veterans who have suffered excessively from 
     mesothelioma;
       (C) engaged in exemplary laboratory and clinical 
     mesothelioma research, including clinical trials, to provide 
     mechanisms for effective therapeutic treatments, as well as 
     detection and prevention, particularly in areas of palliation 
     of disease symptoms and pain management;
       (D) participants in the National Mesothelioma Registry and 
     Tissue Bank under subsection (c) and the annual International 
     Mesothelioma Symposium under subsection (d)(2)(E);
       (E) with respect to research and treatment efforts, 
     coordinated with other centers and institutions involved in 
     exemplary mesothelioma research and treatment;
       (F) able to facilitate transportation and lodging for 
     mesothelioma patients, so as to enable patients to 
     participate in the newest developing treatment protocols, and 
     to enable the centers to recruit patients in numbers 
     sufficient to conduct necessary clinical trials; and
       (G) nonprofit hospitals, universities, or medical or 
     research institutions incorporated or organized in the United 
     States.
       (c) Mesothelioma Registry and Tissue Bank.--
       (1) Establishment.--The Administrator shall make available 
     $1,000,000 from the Fund, and the Director of the National 
     Institutes of Health shall make available $1,000,000 from 
     amounts available to the Director, for each of fiscal years 
     2006 through 2015 for the establishment, maintenance, and 
     operation of a National Mesothelioma Registry to collect data 
     regarding symptoms, pathology, evaluation, treatment, 
     outcomes, and quality of life and a Tissue Bank to include 
     the pre- and post-treatment blood (serum and blood cells) 
     specimens as well as tissue specimens from biopsies and 
     surgery. Not less than $500,000 of the amount made available 
     under the preceding sentence in each fiscal year shall be 
     allocated for the collection and maintenance of tissue 
     specimens.
       (2) Requirements.--The Director of the National Institutes 
     of Health, with the advice and consent of the Medical 
     Advisory Committee, shall conduct a competitive peer review 
     process to select a site to administer the Registry and 
     Tissue Bank described in paragraph (1). The Director shall 
     ensure that the site selected under this paragraph--
       (A) is available to all mesothelioma patients and 
     qualifying physicians throughout the United States;
       (B) is subject to all applicable medical and patient 
     privacy laws and regulations;
       (C) is carrying out activities to ensure that data is 
     accessible via the Internet; and
       (D) provides data and tissue samples to qualifying 
     researchers and physicians who apply for such data in order 
     to further the understanding, prevention, screening, 
     diagnosis, or treatment of malignant mesothelioma.
       (d) Center for Mesothelioma Education.--
       (1) Establishment.--The Administrator shall make available 
     $1,000,000 from the Fund, and the Director of the National 
     Institutes of Health shall make available $1,000,000 from 
     amounts available to the Director, for each of fiscal years 
     2006 through 2015 for the establishment, with the advice and 
     consent of the Medical Advisory Committee, of a Center for 
     Mesothelioma Education (referred to in this section as the 
     ``Center'') to--
       (A) promote mesothelioma awareness and education;
       (B) assist mesothelioma patients and their family members 
     in obtaining necessary information; and
       (C) work with the centers established under subsection (b) 
     in advancing mesothelioma research.
       (2) Activities.--The Center shall--
       (A) educate the public about the new initiatives contained 
     in this section through a National Mesothelioma Awareness 
     Campaign;
       (B) develop and maintain a Mesothelioma Educational 
     Resource Center (referred to in this section as the 
     ``MERCI''), that is accessible via the Internet, to provide 
     mesothelioma patients, family members, and front-line 
     physicians with comprehensive, current information on 
     mesothelioma and its treatment, as well as on the existence 
     of, and general claim procedures for the Asbestos Injury 
     Claims Resolution Fund;
       (C) through the MERCI and otherwise, educate mesothelioma 
     patients, family members, and front-line physicians about, 
     and encourage such individuals to participate in, the centers 
     established under subsection (b), the Registry and the Tissue 
     Bank;
       (D) complement the research efforts of the centers 
     established under subsection (b) by awarding competitive, 
     peer-reviewed grants for the training of clinical specialist 
     fellows in mesothelioma, and for highly innovative, 
     experimental or pre-clinical research; and

[[Page S1300]]

       (E) conduct an annual International Mesothelioma Symposium.
       (3) Requirements.--The Center shall--
       (A) be a nonprofit corporation under section 501(c)(3) of 
     the Internal Revenue Code of 1986;
       (B) be a separate entity from and not an affiliate of any 
     hospital, university, or medical or research institution; and
       (C) demonstrate a history of program spending that is 
     devoted specifically to the mission of extending the survival 
     of current and future mesothelioma patients, including a 
     history of soliciting, peer reviewing through a competitive 
     process, and funding research grant applications relating to 
     the detection, prevention, treatment, and cure of 
     mesothelioma.
       (4) Contracts for oversight.--The Director of the National 
     Institutes of Health may enter into contracts with the Center 
     for the selection and oversight of the centers established 
     under subsection (b), or selection of the director of the 
     Registry and the Tissue Bank under subsection (c) and 
     oversight of the Registry and the Tissue Bank.
       (e) Report and Recommendations.--Not later than September 
     30, 2015, The Director of the National Institutes of Health 
     shall, after opportunity for public comment and review, 
     publish and provide to Congress a report and recommendations 
     on the results achieved and information gained through the 
     Program, including--
       (1) information on the status of mesothelioma as a national 
     health issue, including--
       (A) annual United States incidence and death rate 
     information and whether such rates are increasing or 
     decreasing;
       (B) the average prognosis; and
       (C) the effectiveness of treatments and means of 
     prevention;
       (2) promising advances in mesothelioma treatment and 
     research which could be further developed if the Program is 
     reauthorized; and
       (3) a summary of advances in mesothelioma treatment made in 
     the 10-year period prior to the report and whether those 
     advances would justify continuation of the Program and 
     whether it should be reauthorized for an additional 10 years.
       (f) Severability.--If any provision of this Act, or 
     amendment made by this Act, or the application of such 
     provision or amendment to any person or circumstance is held 
     to be unconstitutional, the remainder of this Act (including 
     this section), the amendments made by this Act, and the 
     application of the provisions of such to any person or 
     circumstance shall not be affected thereby.
       (g) Regulations.--The Director of the National Institutes 
     of Health shall promulgate regulations to provide for the 
     implementation of this section.

                       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.
       (c) Expedited Procedures.--The United States Court of 
     Appeals for the District of Columbia shall provide for 
     expedited procedures for reviews under this section.

     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.
       (d) Expedited Procedures.--The United States Court of 
     Appeals shall provide for expedited procedures for reviews 
     under this section.

     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(j), a notice of financial 
     hardship or inequity determination under section 204(e), a 
     notice of a distributor's adjustment under section 204(n), 
     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(j), a notice of financial hardship or inequity 
     determination under section 204(e), or a notice of a 
     distributor's adjustment under section 204(n), shall commence 
     any action within 30 days after a decision on rehearing under 
     section 204(j)(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. The court shall give such action expedited 
     consideration.

     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 
     relief 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.--
       (1) Payments.--No court may issue a stay of payment by any 
     party into the Fund pending its final judgment.
       (2) Legal challenges.--No court may issue a stay or 
     injunction pending final judicial action, including the 
     exhaustion of all appeals, on a legal challenge to this Act 
     or any portion of this Act.
       (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.--The United States District Court for the 
     District of Columbia shall have exclusive jurisdiction over 
     any action challenging the constitutionality of any provision 
     or application of this Act. The following rules shall apply:
       (A) The action shall be filed in the United States District 
     Court for the District of Columbia and shall be heard by a 3-
     judge court convened under section 2284 of title 28, United 
     States Code.
       (B) A final decision in the action shall be reviewable only 
     by appeal directly to the Supreme Court of the United States. 
     Such appeal shall be taken by the filing of a notice of 
     appeal within 10 days, and the filing of a jurisdictional 
     statement within 30 days, after the entry of the final 
     decision.
       (C) 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.
       (2) Repayment to asbestos trust and class action trust.--If 
     the transfer of the assets of any asbestos trust of a debtor 
     or any class action trust (or this Act as a whole) is held to 
     be unconstitutional or otherwise unlawful, the Fund shall 
     transfer the remaining balance of such assets (determined 
     under section 405(f)(1)(A)(iii)) back to the appropriate 
     asbestos trust or class action trust within 90 days after 
     final judicial action on the legal challenge, including the 
     exhaustion of all appeals.

                   TITLE IV--MISCELLANEOUS PROVISIONS

     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 2006, 
     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 2006), 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 2006) based upon the asbestos payment 
     obligations of a debtor that is a Participant (as that term 
     is defined in section 3 of

[[Page S1301]]

     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 
     2006.''.
       (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 2006) 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 2006); 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 2006; 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 2006, 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 2006 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 2006 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 clause (ii) of this 
     subparagraph and 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 2006) shall be transferred to the 
     Fund not later than 90 days after the date of enactment of 
     the Fairness in Asbestos Injury Resolution Act of 2006 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 clause (i), and except as provided 
     under subparagraphs (B), (C), and (E), any trust established 
     to provide compensation for asbestos claims (as defined in 
     section 3 of the Fairness in Asbestos Injury Resolution Act 
     of 2006), other than a trust established under a 
     reorganization plan subject to section 202(c) of that Act, 
     shall transfer the assets in such trust to the Fund as 
     follows:

       ``(I) In the case of a trust established on or before 
     December 31, 2005, such trust shall transfer 90 percent of 
     the assets in such trust to the Fund not later than 90 days 
     after the date of enactment of the Fairness in Asbestos 
     Injury Resolution Act of 2006.
       ``(II) In the case of a trust established after December 
     31, 2005, such trust shall transfer 88 percent of the assets 
     in such trust to the Fund not later than 90 days after the 
     date of enactment of the Fairness in Asbestos Injury 
     Resolution Act of 2006.

       ``(iii) Not later than 90 days after the date on which the 
     Administrator of the Office of Asbestos Disease Compensation 
     (referred to in this section as the `Administrator') 
     certifies in accordance with section 106(f)(3)(E)(ii) of the 
     Fairness in Asbestos Injury Resolution Act of 2006 that the 
     Fund is fully operational and paying all valid asbestos 
     claims at a reasonable rate, any trust transferring assets 
     under clause (ii) shall transfer all remaining assets in such 
     trust to the Fund. The transfer required by this clause shall 
     not include any trust assets needed to pay--

       ``(I) previously incurred expenses; or
       ``(II) claims determined to be eligible for compensation 
     under clause (vi).

       ``(iv) Except as provided under subparagraph (B), the 
     Administrator of the Fund shall accept any assets transferred 
     under clauses (ii) or (iii) and utilize them for any purposes 
     for the Fund under section 221 of the Fairness in Asbestos 
     Injury Resolution Act of 2006, including the payment of 
     claims for awards under such Act to beneficiaries of the 
     trust from which the assets were transferred.
       ``(v) 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).
       ``(vi) Any trust transferring assets under clause (ii) 
     shall be subject to the following requirements:

       ``(I) The trust may continue to process asbestos claims, 
     make eligibility determinations, and pay claims in a manner 
     consistent with this clause if a claimant--

       ``(aa) has a pending asbestos claim as of the date of 
     enactment of the Fairness in Asbestos Injury Resolution Act 
     of 2006;
       ``(bb) provides to the trust a copy of a binding election 
     submitted to Administrator waiving the right to secure 
     compensation under section 106(f)(2) of the Fairness in 
     Asbestos Injury Resolution Act of 2006, unless the claimant 
     is permitted under section 106(f)(2)(B) of such Act to seek a 
     judgment or order for monetary damages from a Federal or 
     State court;
       ``(cc) meets the requirements for compensation under the 
     distribution plan for the trust as of the date of enactment 
     of the Fairness in Asbestos Injury Resolution Act of 2006;
       ``(dd) for any non-malignant condition satisfies the 
     medical criteria under the distribution plan for the trust 
     that is most nearly equivalent to the medical criteria 
     described in section 121(d)(2) of the Fairness in Asbestos 
     Injury Resolution Act of 2006, except that, notwithstanding 
     any provision of the distribution plan of the trust to the 
     contrary, the trust shall not accept the results of a DLCO 
     test (as such test is defined in section 121(a) of the 
     Fairness in Asbestos Injury Resolution Act of 2006) for the 
     purpose of demonstrating respiratory impairment; and
       ``(ee) for any of the cancers listed in section 121(d)(6) 
     of the Fairness in Asbestos Injury Resolution Act of 2006 
     does not seek, and the trust does not pay, any compensation 
     until such time as the Institute of Medicine finds that there 
     is a causal relationship between asbestos exposure and such 
     cancer, in which case such claims may be paid if such claims 
     otherwise qualify for compensation under the distribution 
     plan of the trust as of the date of enactment of the Fairness 
     in Asbestos Injury Resolution Act of 2006.

       ``(II) The trust shall not accept medical evidence from any 
     physician, medical facility, or laboratory whose evidence 
     would be not be accepted as evidence--

       ``(aa) under the Manville Trust as of the date of enactment 
     of the Fairness in Asbestos Injury Resolution Act of 2006; or
       ``(bb) by the Administrator under section 115(a)(2) of such 
     Act.

       ``(III) The trust shall not amend its scheduled payment 
     amount or payment percentage as in effect on the date of 
     enactment of the Fairness in Asbestos Injury Resolution Act 
     of 2006.
       ``(IV) The trust shall not amend its eligibility criteria 
     after the date of enactment of the Fairness in Asbestos 
     Injury Resolution Act of 2006, except to conform any criteria 
     in any category under the distribution plan of the trust with 
     related criteria in a related category under section 121 of 
     the Fairness in Asbestos Injury Resolution Act of 2006.
       ``(V) The trust shall notify the Administrator of the Fund 
     of any claim determined to be eligible for compensation after 
     the date of enactment of the Fairness in Asbestos Injury 
     Resolution Act of 2006, and the amount of any such 
     compensation awarded to the claimant of such claim. The 
     notification required by this subclause shall be made in such 
     form as the Administrator shall require, and not later than 
     15 days after the date the determination is made.
       ``(VI) The trust shall not pay any claim without a 
     certification by a claimant, subject to the penalties 
     described in the Fairness in Asbestos Injury Resolution Act 
     of 2006, stating the amount of collateral source compensation 
     that such claimant has received, or is entitled to receive, 
     under section 134 of the Fairness in Asbestos Injury 
     Resolution Act of 2006. In the event that collateral source 
     compensation exceeds the amount that a claimant would be paid 
     in the category under that Act that is most nearly similar to 
     the claimant's claim under the distribution plan of the 
     trust, the aggregate value of the awards received by the 
     claimant shall be reduced pro rata so that the claimant's 
     total compensation does not exceed what would be paid for 
     such a condition under the Fairness in Asbestos Injury 
     Resolution Act of 2006, excluding any adjustments under 
     section 131(b)(3) and (4) of that Act.
       ``(VII) Upon finding that the trust has breached any 
     condition or conditions of this clause, the Administrator 
     shall require the immediate payment of remaining trust assets 
     into the Fund in accordance with section 402(f) of the 
     Fairness in Asbestos Injury Resolution Act of 2006. The 
     Administrator shall be entitled to an injunction against 
     further payments of nonliquidated claims from the assets of 
     the trust during the pendency of any dispute regarding the 
     findings of noncompliance by the Administrator. The

[[Page S1302]]

     court in which any action to enforce the obligations of the 
     trust is pending shall afford the action expedited 
     consideration.

       ``(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 2006 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 2006, 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 2006, 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.--
       ``(A) In general.--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 2006, and an interlocutory order 
     denying such relief shall not be subject to immediate appeal 
     under section 1291(a) of title 28.
       ``(B) Availability of fund assets.--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 such transfer 
     shall no longer be 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 304 of the Fairness in Asbestos Injury 
     Resolution Act of 2006.
       (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 2006), 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 2006), 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 
     and the perfected claims of the secured creditors. 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.
       (j) Standing in Bankruptcy Proceedings.--The Administrator 
     shall have standing in any bankruptcy case involving a debtor 
     participant. No bankruptcy court may require the 
     Administrator to return property seized to satisfy 
     obligations to the Fund.

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

       (a) Effect on Federal and State Law.--The provisions of 
     this Act shall supersede any Federal or State law insofar as 
     such law may relate to any asbestos claim, including any 
     claim described under subsection (e)(2).
       (b) Effect on Silica Claims.--
       (1) In general.--
       (A) Rule of construction.--Nothing in this Act shall be 
     construed to preempt, bar, or otherwise preclude any personal 
     injury claim attributable to exposure to silica as to which 
     the plaintiff--
       (i) pleads with particularity and establishes by a 
     preponderance of evidence either that--

       (I) no claim has been asserted or filed by or with respect 
     to the exposed person in any forum for any asbestos-related 
     condition and the exposed person (or another claiming on 
     behalf of or through the exposed person) is not eligible for 
     any monetary award under this Act; or
       (II)(aa) the exposed person suffers or has suffered a 
     functional impairment that was caused by exposure to silica; 
     and
       (bb) asbestos exposure was not a substantial contributing 
     factor to such functional impairment; and

       (ii) satisfies the requirements of paragraph (2) .
       (B) Preemption.--Claims attributable to exposure to silica 
     that fail to meet the requirements of subparagraph (A) shall 
     be preempted by this Act.
       (2) Required evidence.--
       (A) In general.--In any claim to which paragraph (1) 
     applies, the initial pleading (or, for claims pending on the 
     date of enactment of this Act, an amended pleading to be 
     filed within 60 days after such date, but not later than 60 
     days before trial, shall plead with particularity the 
     elements of subparagraph (A)(i)(I) or (II) and shall be 
     accompanied by the information described under subparagraph 
     (B)(i) through (iv).
       (B) Pleadings.--If the claim pleads the elements of 
     paragraph (1)(A)(i)(II) and by the information described 
     under clauses (i) through (iv) of this subparagraph if the 
     claim pleads the elements of paragraph (1)(A)(i)(I)--
       (i) admissible evidence, including at a minimum, a B-
     reader's report, the underlying x-ray film and such other 
     evidence showing that the claim may be maintained and is not 
     preempted under paragraph (1);
       (ii) notice of any previous lawsuit or claim for benefits 
     in which the exposed person, or another claiming on behalf of 
     or through the injured person, asserted an injury or 
     disability based wholly or in part on exposure to asbestos;
       (iii) if known by the plaintiff after reasonable inquiry by 
     the plaintiff or his representative, the history of the 
     exposed person's exposure, if any, to asbestos; and
       (iv) copies of all medical and laboratory reports 
     pertaining to the exposed person that refer to asbestos or 
     asbestos exposure.
       (3) Statute of limitations.--In general, the statute of 
     limitations for a silica claim shall be governed by 
     applicable State law, except that in any case under this 
     subsection, the statute of limitations shall only start to 
     run when the plaintiff becomes impaired.
       (c) Superseding Provisions.--

[[Page S1303]]

       (1) In general.--Except as provided under paragraph (3) and 
     section 106(f), any agreement, understanding, or undertaking 
     by any person or affiliated group with respect to the 
     treatment of any asbestos claim, including a claim described 
     under subsection (e)(2), 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.--Except as provided under paragraph 
     (3), 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 such agreement, understanding, or undertaking.
       (3) Exception.--
       (A) In general.--Except as provided in section 202(f), 
     nothing in this Act shall abrogate a binding and legally 
     enforceable written settlement agreement between any 
     defendant participant or its insurer and a specific named 
     plaintiff with respect to the settlement of an asbestos claim 
     of the plaintiff if--
       (i) before the date of enactment of this Act, the 
     settlement agreement was executed by--

       (I) the authorized legal representative acting on behalf of 
     the settling defendant or insurer, the settling defendant or 
     the settling insurer; and
       (II)(aa) the specific individual plaintiff, or the 
     individual's immediate relatives; or
       (bb) an authorized legal representative acting on behalf of 
     the plaintiff where the plaintiff is incapacitated and the 
     settlement agreement is signed by that authorized legal 
     representative;

       (ii) the settlement agreement contains an express 
     obligation by the settling defendant or settling insurer to 
     make a future direct monetary payment or payments in a fixed 
     amount or amounts to the individual plaintiff; and
       (iii) within 30 days after the date of enactment of this 
     Act, or such shorter time period specified in the settlement 
     agreement, the plaintiff has fulfilled all conditions to 
     payment under the settlement agreement.
       (B) Bankruptcy-related agreements.--The exception set forth 
     in this paragraph shall not apply to any bankruptcy-related 
     agreement.
       (C) Collateral source.--Any settlement payment under this 
     section is a collateral source if the plaintiff seeks 
     recovery from the Fund.
       (D) Abrogation.--Nothing in subparagraph (A) shall abrogate 
     a settlement agreement otherwise satisfying the requirements 
     of that subparagraph if such settlement agreement expressly 
     anticipates the enactment of this Act and provides for the 
     effects of this Act.
       (E) Health care insurance or expenses settlements.--Nothing 
     in this Act shall abrogate or terminate an otherwise fully 
     enforceable settlement agreement which was executed before 
     the date of enactment of this Act directly by the settling 
     defendant or the settling insurer and a specific named 
     plaintiff to pay the health care insurance or health care 
     expenses of the plaintiff.
       (d) Exclusive Remedy.--
       (1) In general.--Except as provided under paragraph (2) and 
     section 106(f) of this Act and section 524(j)(3) of title 11, 
     United States Code, as amended by this Act, the remedies 
     provided under this Act shall be the exclusive remedy for any 
     asbestos claim, including any claim described in subsection 
     (e)(2), under any Federal or State law.
       (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 
     healthcare 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 paragraph (2)) in any Federal 
     or State court 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 preempted, barred, or otherwise precluded 
     under this Act, and 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) Review of remand orders.--
       (i) In general.--Section 1447 of title 28, United States 
     Code, shall apply to any removal of a case under this 
     section, except that notwithstanding subsection (d) of that 
     section, a court of appeals may accept an appeal from an 
     order of a district court granting or denying a motion to 
     remand an action to the State court from which it was removed 
     if application is made to the court of appeals not less than 
     30 days after entry of the order.
       (ii) Time period for judgment.--If the court of appeals 
     accepts an appeal under clause (i), the court shall complete 
     all action on such appeal, including rendering judgment, not 
     later than 180 days after the date on which such appeal was 
     filed, unless an extension is granted under clause (iii).
       (iii) Extension of time period.--The court of appeals may 
     grant an extension of the 180-day period described in clause 
     (ii) if--

       (I) all parties to the proceeding agree to such extension, 
     for any period of time; or
       (II) such extension is for good cause shown and in the 
     interests of justice, for a period not to exceed 30 days.

       (iv) Denial of appeal.--If a final judgment on the appeal 
     under clause (i) is not issued before the end of the period 
     described in clause (ii), including any extension under 
     clause (iii), the appeal shall be denied.
       (E) Jurisdiction.--The jurisdiction of the district court 
     shall be limited to--
       (i) determining whether removal was proper; and
       (ii) determining, based on the evidentiary record, whether 
     the claim presented is preempted, barred, or otherwise 
     precluded under this Act.
       (6) Credits.--
       (A) In general.--If, notwithstanding the express intent of 
     Congress stated in this section, any court finally determines 
     for any reason that an asbestos claim is not barred under 
     this subsection and 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.
       (B) Requirements.--The Administrator shall require 
     participants seeking credit under this paragraph to 
     demonstrate that the participant--
       (i) timely pursued all available remedies, including 
     remedies available under this paragraph to obtain dismissal 
     of the claim; and
       (ii) 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.
       (C) Information.--The Administrator may require a 
     participant seeking credit under this paragraph to furnish 
     such further information as is necessary and appropriate to 
     establish eligibility for, and the amount of, the credit.
       (D) Intervention.--The Administrator may intervene in any 
     action in which a credit may be due under this paragraph.

     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).

[[Page S1304]]

       (C) Earned erosion amount.--The term ``earned erosion 
     amount'' means 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 Defendant Participant's Funding 
  Obligation Ends:                               Applicable Percentage:
2...............................................................67.06  
3...............................................................86.72  
4...............................................................96.55  
5..............................................................102.45  
6...............................................................90.12  
7...............................................................81.32  
8...............................................................74.71  
9...............................................................69.58  
10..............................................................65.47  
11..............................................................62.11  
12..............................................................59.31  
13..............................................................56.94  
14..............................................................54.90  
15..............................................................53.14  
16..............................................................51.60  
17..............................................................50.24  
18..............................................................49.03  
19..............................................................47.95  
20..............................................................46.98  
21..............................................................46.10  
22..............................................................45.30  
23..............................................................44.57  
24..............................................................43.90  
25..............................................................43.28  
26..............................................................42.71  
27..............................................................42.18  
28..............................................................40.82  
29..............................................................39.42  

       (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 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 38.1 percent of each 
     defendant participant's scheduled payment amount.
       (B) 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's or reinsurer's payments to the Fund or the erosion 
     deemed to occur under this section.
       (C) Policies without certain limits or with exclusion.--
     Except as provided under subparagraph (E), 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.
       (D) Treatment of consolidation election.--If an affiliated 
     group elects consolidation as provided in section 204(g), the 
     total erosion of limits for the affiliated group under 
     paragraph (2)(A) shall not exceed 38.1 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 38.1 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.
       (E) 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. If 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).
       (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, except subject to section 212(a)(1)(D), 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 purchased by a participant after December 31, 
     1990, 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.

[[Page S1305]]

       (e) Effect on Certain Insurance and Reinsurance Claims.--
       (1) No coverage for fund assessments.--Subject to section 
     212(a)(1)(D), 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 written agreement specifically providing 
     insurance, reinsurance, or other reimbursement 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 date 
     of enactment of this Act, 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 such 
     date of enactment, or by any Tier I defendant participant 
     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 claims are preempted, barred, or superseded by 
     section 403;
       (B) any such rights or obligations of such person with 
     respect to insurance or reinsurance are prohibited by 
     paragraph (1) or (2) of subsection (e); or
       (C) the limits of insurance otherwise available to such 
     participant in respect of asbestos claims are deemed to be 
     eroded under subsection (a).

     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 an analysis of--
       (1) the claims experience of the program 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 
     exposures underlying those claims;
       (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;
       (C) a summary of the eligibility determinations made by the 
     Office under section 114;
       (D) a summary of the awards made from the Fund, including 
     the amount of the awards; and
       (E) for each disease level, 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 such claimants are entitled according 
     to section 131;
       (2) the administrative performance of the program, 
     including--
       (A) the performance of the program in meeting the time 
     limits prescribed by law and an analysis of the reasons for 
     any systemic delays;
       (B) any backlogs of claims that may exist and an 
     explanation of the reasons for such backlogs;
       (C) the costs to the Fund of administering the program; and
       (D) any other significant factors bearing on the efficiency 
     of the program;
       (3) the financial condition of the Fund, including--
       (A) statements of the Fund's revenues, expenses, assets, 
     and liabilities;
       (B) the identity of all participants, the funding 
     allocations of each participant, and the total amounts of all 
     payments to the Fund;
       (C) a list of all financial hardship or inequity 
     adjustments applied for during the fiscal year, and the 
     adjustments that were made during the fiscal year;
       (D) a statement of the investments of the Fund; and
       (E) a statement of the borrowings of the Fund;
       (4) the financial prospects of the Fund, including--
       (A) an estimate of the number and types of claims, the 
     amount of awards, and the participant payment obligations for 
     the next fiscal year;
       (B) 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 and over the predicted 
     lifetime of the program 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; and
       (C) a report on any changes in projections made in earlier 
     annual reports or sunset analyses regarding the Fund's 
     ability to meet its financial obligations;
       (5) a summary of any legal actions brought or penalties 
     imposed under section 223, any referrals made to law 
     enforcement authorities under section 408 (a) and (b), and 
     any contributions to the Fund collected under section 408(e);
       (6) 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 those claimants who suffer 
     from diseases or conditions for which exposure to asbestos 
     was a substantial contributing factor;
       (7) a summary of the results of audits conducted under 
     section 115; and
       (8) a summary of prosecutions under section 1348 of title 
     18, United States Code (as added by this Act).
       (c) Certification.--The Administrator shall certify in the 
     annual report required under subsection (a) whether, in the 
     best judgment of the Administrator, the Fund will have 
     sufficient resources for the fiscal year in which the report 
     is issued to make all required payments--
       (1) with respect to all claims determined eligible for 
     compensation that have been filed and that the Administrator 
     projects will be filed with the Office for the fiscal year; 
     and
       (2) to satisfy the Fund's debt repayment obligation, 
     administrative costs, and other financial obligations.
       (d) Claims Analysis and Verification of Unanticipated 
     Claims.--
       (1) In general.--If the Administrator concludes, on the 
     basis of the annual report submitted under this section, 
     that--
       (A) the average number of claims that qualify for 
     compensation under a claim level or designation exceeds 125 
     percent of the number of claims expected to qualify for 
     compensation under that claim level or designation in the 
     most recent Congressional Budget Office estimate of asbestos-
     injury claims for any 3-year period, the Administrator shall 
     conduct a review of a statistically significant sample of 
     claims qualifying for compensation under the appropriate 
     claim level or designation; or
       (B) the average number of claims that qualify for 
     compensation under a claim level or designation is less than 
     75 percent of the number of claims expected to qualify for 
     compensation under that claim level or designation in the 
     most recent Congressional Budget Office estimate of asbestos-
     injury claims for any 3-year period, the Administrator shall 
     conduct a review of a statistically significant sample of 
     claims deemed ineligible for compensation under the 
     appropriate claim level or designation.
       (2) Determinations.--The Administrator shall examine the 
     best available medical evidence and any recommendation made 
     under subsection (b)(5) in order to determine which 1 or more 
     of the following is true:
       (A) Without a significant number of exceptions, all of the 
     claimants who qualified for compensation under the claim 
     level or designation suffer from an injury or disease for 
     which exposure to asbestos was a substantial contributing 
     factor.
       (B) A significant number of claimants who qualified for 
     compensation under the claim level or designation do not 
     suffer from an injury or disease for which exposure to 
     asbestos was a substantial contributing factor.
       (C) A significant number of claimants who were denied 
     compensation under the claim level of designation did suffer 
     from an injury or disease for which exposure to asbestos was 
     a substantial contributing factor.
       (D) The Congressional Budget Office projections 
     underestimated or overestimated the actual number of persons 
     who suffer from an injury or disease for which exposure to 
     asbestos was a substantial contributing factor.
       (3) Recommendations concerning claims criteria.--If the 
     Administrator determines that a significant number of the 
     claimants who qualified for compensation under the claim 
     level under review do not suffer from an injury or disease 
     for which exposure to asbestos was a substantial contributing 
     factor, or that a significant number of the claimants who 
     were denied compensation under the claim level under review 
     suffered from an injury or disease for which exposure to 
     asbestos was a substantial contributing factor, the 
     Administrator shall recommend to Congress, under subsection 
     (f), changes to the compensation criteria in order to ensure 
     that the Fund provides compensation for injury or disease for 
     which exposure to asbestos was a substantial contributing 
     factor, but does not provide compensation to claimants who do 
     not suffer from an injury or disease for which asbestos 
     exposure was a substantial contributing factor.
       (e) Recommendations of Administrator and Advisory 
     Committee.--
       (1) Referral.--If the Administrator recommends changes to 
     this Act under subsection (d), the recommendations and 
     accompanying analysis shall be referred to the Advisory 
     Committee on Asbestos Disease Compensation established under 
     section 102 (in this subsection referred to as the ``Advisory 
     Committee'').
       (2) Advisory committee recommendations.--The Advisory 
     Committee shall hold

[[Page S1306]]

     expedited public hearings on the alternatives and 
     recommendations of the Administrator and make its own 
     recommendations for reform of the program under titles I and 
     II.
       (3) Transmittal to congress.--Not later than 90 days after 
     receiving the recommendations of the Administrator, the 
     Advisory Committee shall transmit the recommendations of the 
     Administrator and the recommendations of the Advisory 
     Committee to the Committee on the Judiciary of the Senate and 
     the Committee on the Judiciary of the House of 
     Representatives.
       (f) Shortfall Analysis.--
       (1) In general.--
       (A) Analysis.--If the Administrator concludes, at any time, 
     that the Fund may not be able to pay claims as such claims 
     become due at any time within the next 5 years and to satisfy 
     its other obligations, the Administrator shall prepare an 
     analysis of the reasons for the situation, an estimation of 
     when the Fund will no longer be able to pay claims as such 
     claims 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 
     Administrator shall submit such analysis to the Committee on 
     the Judiciary of the Senate and the Committee on the 
     Judiciary of the House of Representatives. Any 
     recommendations made by the Administrator for changes to the 
     program shall, in addition, be referred to the Advisory 
     Committee on Asbestos Disease Compensation established under 
     section 102 for review.
       (B) Range of alternatives.--The range of alternatives under 
     subparagraph (A) may include--
       (ii) 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, enhancement of enforcement authority, 
     changes in the timing of payments, changes in contributions 
     by defendant participants, insurer participants (or both such 
     participants), or changes in award values); or
       (iii) any measure that the Administrator considers 
     appropriate.
       (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, including return on investments, 
     borrowing capacity, interest rates, ability to collect 
     contributions, and other relevant factors;
       (B) the operation of the Fund generally, including 
     administration of the claims processing, the ability of the 
     Administrator to collect contributions from participants, 
     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 appropriateness of the diagnostic, exposure, and 
     medical criteria, including the adequacy of the criteria to 
     rule out idiopathic mesothelioma;
       (D) the actual incidence of asbestos-related diseases, 
     including mesothelioma, based on epidemiological studies and 
     other relevant data;
       (E) compensation of diseases with alternative causes; and
       (F) other factors that the Administrator considers 
     relevant.
       (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.

     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 shall 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 shall be 
     construed to--
       (1) create any obligation of funding from the United States 
     Government, including any borrowing authorized under section 
     221(b)(2); 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. The 
     payment of any such medical expenses shall not be collateral 
     source compensation as defined under section 134(a).
       (b) Healthcare From Provider of Choice.--Nothing in this 
     Act shall be construed to preclude any eligible claimant from 
     receiving healthcare from the provider of their choice.

     SEC. 408. VIOLATIONS OF ENVIRONMENTAL 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 the Secretary of Labor or 
     the appropriate State agency with authority to enforce 
     occupational safety and health standards, for investigation 
     for possible civil or criminal penalties under section 17 of 
     the Occupational Safety and Health Act of 1970 (29 U.S.C. 
     666).

     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, healthcare 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 healthcare, 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 2006.''.
       (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 2006.''.
       (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 2006.''.
                                 ______
                                 
  SA 2847. Mr. ISAKSON submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       Strike section 223(j) and insert the following:

[[Page S1307]]

       Section 223
     (j) Transactions.--
       (1) Notice of transaction.--Any participant that has 
     engaged in any transaction or series of transactions under 
     which a significant portion of such participant's assets, 
     properties or business was, directly or indirectly, 
     transferred by any means (including, without limitation, by 
     sale, dividend, contribution to a subsidiary or split-off) to 
     1 or more persons other than the participant shall provide 
     written notice to the Administrator of such transaction (or 
     series of transactions).
       (2) Timing of notice and related actions.--
       (A) In general.--Any notice that a participant is required 
     to give under paragraph (1) shall be given not later than 30 
     days after the date of consummation of the transaction or the 
     first transaction to occur in a proposed series of 
     transactions.
       (B) Other notifications.--
       (i) In general.--Not later than the date in any year by 
     which a participant is required to make its contribution to 
     the Fund, the participant shall deliver to the Administrator 
     a written certification stating that--
       (I) the participant has complied during the period since 
     the last such certification or the date of enactment of this 
     Act with the notice requirements set forth in this 
     subsection; or
       (II) the participant was not required to provide any notice 
     under this subsection during such period.
       (ii) Summary.--The Administrator shall include in the 
     annual report required to be submitted to Congress under 
     section 405 a summary of all such notices (after removing all 
     confidential identifying information) received during the 
     most recent fiscal year.
       (C) Notice completion.--The Administrator shall not 
     consider any notice given under paragraph (1) as given until 
     such time as the Administrator receives substantially all the 
     information required by this subsection.
       (3) Contents of notice.--
       (A) In general.--The Administrator shall determine by rule 
     or regulation the information to be included in the notice 
     required under this subsection, which shall include such 
     information as may be necessary to enable the Administrator 
     to determine whether--
       (i) the person or persons to whom the assets, properties or 
     business were transferred in the transaction (or series of 
     transactions) should be considered to be the successor in 
     interest of the participant for purposes of this Act, or (ii) 
     the transaction (or series of transactions) is subject to 
     avoidance by a trustee under section 544(b) or 548 of title 
     11, United States Code, as if, but whether or not, the 
     participant is subject to a case under title 11, United 
     States Code.
       (B) Statements.--The notice shall also include--
       (i) a statement by the participant as to whether it 
     believes any person has become a successor in interest to the 
     participant for purposes of this Act and, if so, the identity 
     of that person; and
       (ii) a statement by the participant as to whether that 
     person has acknowledged that it has become a successor in 
     interest for purposes of this Act.
       (4) Definition.--In this subsection, the term `significant 
     portion of the assets, properties or business of a 
     participant' means assets (including, without limitation, 
     tangible or intangible assets, securities and cash), 
     properties or business of such participant (or its affiliated 
     group, to the extent that the participant has elected to be 
     part of an affiliated group under section 204(f)) that, 
     together with any other asset, property or business 
     transferred by such participant in any of the previous 
     completed 5 fiscal years of such participant (or, as 
     appropriate, its affiliated group), and as determined in 
     accordance with United States' generally accepted accounting 
     principles as in effect from time to time--
       (A) generated at least 40 percent of the revenues of such 
     participant (or its affiliated group);
       (B) constituted at least 40 percent of the assets of such 
     participant (or its affiliated group);
       (C) generated at least 40 percent of the operating cash 
     flows of such participant (or its affiliated group); or
       (D) generated at least 40 percent of the net income or loss 
     of such participant (or its affiliated group),

     as measured during any of such 5 previous fiscal years.
       (5) Right of action.--
       (A) In general.--Notwithstanding section 221(f), if the 
     Administrator or any participant believes that a participant 
     has engaged, directly or indirectly, in, or is the subject 
     of, a transaction (or series of transactions)--
       (i) involving a person or persons who, as a result of such 
     transaction (or series of transactions), may have or may 
     become the successor in interest or successors in interest of 
     such participant for purposes of this Act, where the status 
     as a successor in interest has not been stated and 
     acknowledged by the participant and such person; or
       (ii) that may be subject to avoidance by a trustee under 
     section 544(b) or 548 of title 11, United States Code, as if, 
     but whether or not, the participant is a subject to a case 
     under title 11, United States Code,

     then the Administrator or such participant may, as a deemed 
     creditor under applicable law, bring a civil action in an 
     appropriate forum against the participant or any other person 
     who is either a party to the transaction (or series of 
     transactions) or the recipient of any asset, property or 
     business of the participant.
       (B) Relief allowed.--In any action commenced under this 
     subsection, the Administrator or a participant, as 
     applicable, may seek--
       (i) with respect to a transaction (or series of 
     transactions) referenced in clause (i) of subparagraph (A), a 
     declaratory judgment regarding whether such person has become 
     the successor in interest of such participant for purposes of 
     this Act; or
       (ii) with respect to a transaction (or series of 
     transactions) referenced in clause (ii) of subparagraph (A)--
       (I) a temporary restraining order or a preliminary or 
     permanent injunction against such transaction (or series of 
     transactions); or
       (II) such other relief regarding such transaction (or 
     series of transactions) as the court determines to be 
     necessary to ensure that performance of a participant's 
     payment obligations under this Act is not materially impaired 
     by reason of such transaction (or series of transactions).
       (C) Applicability.--If the Administrator or a participant 
     wishes to challenge a statement made by a participant that a 
     person has not become a successor in interest for purposes of 
     this Act, then this paragraph shall be the exclusive means by 
     which the determination of whether such person became a 
     successor in interest of the participant shall be made. This 
     paragraph shall not preempt any other rights of any person 
     under applicable Federal or State law.
       (D) Venue.--Any action under this paragraph shall be 
     brought in any appropriate United States district court or, 
     to the extent necessary to obtain complete relief, any other 
     appropriate forum outside of the United States.
       (6) Rules and regulations.--The Administrator may 
     promulgate regulations to effectuate the intent of this 
     subsection, including regulations relating to the form, 
     timing and content of notices.
                                 ______
                                 
  SA 2848. Mr. THUNE (for himself, Mr. Coleman, and Mr. Graham) 
submitted an amendment intended to be proposed to amendment SA 2746 
proposed by Mr. Frist (for Mr. Specter (for himself and Mr. Leahy)) to 
the bill S. 852, to create a fair and efficient system to resolve 
claims of victims for bodily injury caused by asbestos exposure, and 
for other purposes; which was ordered to lie on the table; as follows:

       On page 144, between lines 6 and 7, insert the following:
       (9) Safety equipment manufacturer defendant participant.--
     The term ``safety equipment manufacturer defendant 
     participant'' means any defendant participant that--
       (A) has continuously manufactured respiratory protection 
     equipment in the United States on and after December 31, 
     1972; and
       (B) based upon the portion of its prior asbestos 
     expenditures attributable to asbestos claims relating to 
     respiratory protection products being treated as total prior 
     asbestos expenditures would result in that participant being 
     assigned to the same tier to which that participant is 
     assigned under section 202(d) based on its total prior 
     asbestos expenditures.
       On page 151, between lines 16 and 17, insert the following:
       (7) Safety equipment manufacturer defendant participants.--
       (A) In general.--A safety equipment manufacturer defendant 
     participant that would be included in Tier II, III, IV, or V 
     according to that defendant participant's prior asbestos 
     expenditures shall instead be assigned to the immediately 
     lower tier, such that--
       (i) a safety equipment manufacturer defendant participant 
     that would be assigned to Tier II shall instead be assigned 
     to Tier III;
       (ii) a safety equipment manufacturer defendant participant 
     that would be assigned to Tier III shall instead be assigned 
     to Tier IV;
       (iii) a safety equipment manufacturer defendant participant 
     that would be assigned to Tier IV shall instead be assigned 
     to Tier V; and
       (iv) a safety equipment manufacturer defendant participant 
     that would be assigned to Tier V shall instead be assigned to 
     Tier VI.
       (B) Return to original tier.--
       (i) Cessation of manufacturing.--The Administrator shall 
     return a safety equipment manufacturer defendant participant 
     to that participant's original tier, on a yearly basis, if 
     the Administrator determines that the safety equipment 
     manufacturer defendant has ceased manufacturing respiratory 
     protection equipment in the United States.
       (ii) Solvency of fund.--The Administrator may return all 
     safety equipment manufacturer defendant participants to their 
     original tiers, on a yearly basis, if the Administrator 
     determines that the additional revenues that would be 
     collected are needed to preserve the solvency of the Fund.
                                 ______
                                 
  SA 2849. Mr. SESSIONS submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury

[[Page S1308]]

caused by asbestos exposure, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 366, between lines 12 and 13, insert the following:
       (c) Application of the Longshore and Harbor Workers' 
     Compensation Act.--Employers and their insurers who pay 
     compensation or medical benefits or who are potentially 
     liable to their employees and other beneficiaries for 
     compensation or medical benefits under the Longshore and 
     Harbor Workers' Compensation Act (33 U.S.C. 901 et seq.) 
     shall be entitled to--
       (1) a lien for compensation and medical benefits paid; and
       (2) release as the case may be, as per the provisions of 33 
     U.S.C. Section 933; provided, however, that such employers, 
     insurers, employees and other persons entitled to the 
     compensation or medical benefits under that Act may not bring 
     actions under Section 933 against third parties who are 
     protected under this Act.
                                 ______
                                 
  SA 2850. Mr. KYL (for himself and Mr. Chambliss) submitted an 
amendment intended to be proposed to amendment SA 2746 proposed by Mr. 
Frist (for Mr. Specter (for himself and Mr. Leahy)) to the bill S. 852, 
to create a fair and efficient system to resolve claims of victims for 
bodily injury caused by asbestos exposure, and for other purposes; 
which was ordered to lie on the table; as follows:

     SEC. 1. PROPORTIONAL PAYMENTS.

       (a) At page 171, after line 5, insert new (c) as follows, 
     the subsection references assume that the required 
     renumbering has occurred:
       ``(c) Limitation.--For any affiliated group, the total 
     payment in any year, including any guaranteed payment 
     surcharge under subsection (m) and any bankruptcy trust 
     guarantee surcharge under section 222(c), shall not exceed 
     the lesser of $16,702,400 or 1.67024 percent of the revenues 
     of the affiliated group for the most recent fiscal year 
     ending on or prior to December 31, 2002, or for the most 
     recent 12-month fiscal year as of the date the limitation is 
     applied, whichever is greater. For purposes of this 
     subsection, the term ``affiliated group'' shall include any 
     defendant participant that is an ultimate parent. The 
     limitation in this subsection shall not apply to defendant 
     participants in Tier I or to any affiliated group whose 
     revenues for the most recent fiscal year ending on or prior 
     to December 31, 2002, or for the most recent 12-month fiscal 
     year as of the date the limitation applied, whichever is 
     greater, exceeds $1,000,000,000. The revenues of the 
     affiliated group shall be determined in accordance with 
     section 203(a)(2), except for the applicable date. An 
     affiliated group that claims a reduction in its payment in 
     any year shall file with the administrator, in accordance 
     with procedures prescribed by the administrator, sufficient 
     information to allow the administrator to determine the 
     amount of any such reduction in that year. If as a result of 
     the application of the limitation provided in this subsection 
     an affiliated group is exempt from paying all or part of a 
     guaranteed payment surcharge or bankruptcy trust surcharge, 
     then the reduction in the affiliated group's payment 
     obligation due to the limitation in this subsection shall be 
     redistributed in accordance with subsection (m). Nothing in 
     this subsection shall be construed as reducing the minimum 
     aggregate annual payment obligation of defendant participants 
     as provided in section 204(i)(1).''
       (b) Renumber subsections following new subsection (c).
       (c) Subsequent to renumbering the subsections following new 
     subsection 204(c), make the following cross-reference 
     changes:
       At page 142, line 7, replace ``204(g)'' with ``204(h)''.
       At page 151, line 20, replace ``204(i)(6)'' with 
     ``204(j)(6)''.
       At page 160, line 21, replace ``204(1)'' with ``204(m)''.
       At page 167, line 24, replace ``204(d)'' with ``204(e)''.
       At page 170, lines 21 and 22, replace ``(d) and (m)'' with 
     ``(e) and (n)''.
       At page 171, line 22, replace ``(i)(10)'' with ``(j)(10)''.
       At page 172, line 3, replace ``(j)'' with ``(k)''.
       At page 177, line 12, replace ``(j) with ``(k)''.
       At page 178, line 25, replace ``(j)(3)'' with ``(k)(3)''.
       At page 179, line 2, replace ``(k)(1)(A)'' with 
     ``(l)(1)(A)''.
       At page 182, line 16, replace ``(i) with ``(j)''.
       At page 183, line 6, replace ``(i)'' with ``(j)''.
       At page 186, lines 7 and 8, replace ``(d), (f), (g), and 
     (m)'' with ``(e), (g), (h) and (n)''.
       At page 186, line 11, replace ``(d) and (m)'' with ``(e) 
     and ``(n)''.
       At page 186, line 20, replace ``(d) and (m)'' with ``(e) 
     and ``(n)''.
       At page 186, line 23, replace ``(l)'' with ``(m)''.
       At page 187, line 8, replace ``(f)'' with ``(g)''.
       At page 196, line 20, replace ``(d)'' with ``(e)''.
       At page 196, line 22, replace ``(m)'' with ``(n)''.
       At page 197, line 13, replace ``(h)'' with ``(i)''.
       At page 198, line 11, replace ``(d)'' with ``(e)''.
       At page 198, line 16, replace ``(h)'' with ``(i)''.
       At page 198, line 17, replace ``(j)'' with ``(k)''.
       At page 198, line 23, replace ``(d)'' with ``(e)''.
       At page 199, line 10, replace ``(h)'' with ``(i)''.
       At page 199, line 12, replace ``(d) and (m)'' with ``(e) 
     and (n)''.
       At page 199, line 20, replace ``(k)'' with ``(l)''.
       At page 199, line 22, replace ``(h)'' with ``(i)''.
       At page 200, line 3, replace ``(h)'' with ``(i)''.
       At page 200, line 7, replace ``(d), (t), (g), and (m)'' 
     with ``(e), (g), (h) and (n)''.
       At page 200, line 22, replace ``(d), (t), and (g)'' with 
     ``(e), (g), and (h)''.
       At page 201, line 5, replace ``(i)(9)'' with ``(j)(9)''.
       At page 203, line 6, replace ``204(i)'' with ``204(j)''.
       At page 204, line 23, replace ``204(d)'' with ``204(e)''.
       At page 205, line 11, replace ``(i)(10)'' with ``(j)(10)''.
       At page 205, line 16, replace ``204(h)'' with ``204(i)''.
       At page 248, line 21, replace ``204(f)(3)'' with 
     ``204(g)(3)''.
       At page 261, line 14, replace ``204(i)(10)'' with 
     ``204(j)(10)''.
       At page 266, line 14, replace ``204(f)'' with ``204(g)''.
       At page 289, line 9, replace ``204(i)'' with ``204(j)''.
       At page 289, line 11, replace ``204(d)'' with ``204(e)''.
       At page 289, line 12, replace ``204(m)'' with ``204(n)''.
       At page 289, line 19, replace ``204(i)'' with ``204(j)''.
       At page 289, line 20, replace ``204(d)'' with ``204(e)''.
       At page 289, line 21, replace ``204(m)'' with ``204(n)''.
       At page 289, line 23, replace ``204(i)(10)'' with 
     ``204(j)(10)''.
       At page 334, line 8, replace ``204(f)'' with ``204(g)''.

     SEC. 2. HARDSHIP ADJUSTMENTS.

       (a) Strike page 172, line 6, through page 173, line 17, and 
     insert the following:
       (2) Financial hardship adjustments.
       (A) In general.--Any defendant participant in any tier may 
     apply for an adjustment under this paragraph at any time 
     during the period in which a payment obligation to the Fund 
     remains outstanding and may qualify for such an adjustment by 
     demonstrating to the satisfaction of the administrator that 
     the amount of its payment obligation would materially and 
     adversely affect the defendant participant's ability to 
     continue its business and to pay or satisfy its debts 
     generally as and when they come due. Such an adjustment shall 
     be in an amount that in the judgment of the administrator is 
     reasonably necessary to prevent such material and adverse 
     effect on the defendant participant's ability to continue its 
     business and to pay or satisfy its debts generally as and 
     when they come due.
       (B) Factors to consider.--In determining whether to make an 
     adjustment under subparagraph (A) and the amount thereof, the 
     Administrator shall consider--
       (1) the financial situation of the defendant participant 
     and its affiliated group as shown in historical audited 
     financial statements, including income statement, balance 
     sheet, and statement of cash flow, for the three fiscal years 
     ending immediately prior to the application and projected 
     financial statements for the three fiscal years following the 
     application;
       (2) an analysis of capital spending and fixed charge 
     coverage on a historical basis for the three fiscal years 
     immediately preceding a defendant participant's application 
     and for the three fiscal years following the application;
       (3) any payments or transfers of property made, or 
     obligations incurred, within the preceding 6 years by the 
     defendant participant to or for the benefit of any insider as 
     defined under section 101(31) of title 11 of the United 
     States Code or any affiliate as defined under section 101(2) 
     of title 11 of the United States Code;
       (4) any prior extraordinary transactions within the 
     preceding 6 years involving the defendant participant, 
     including without limitation payments of extraordinary 
     salaries, bonuses, or dividends;
       (5) the defendant participant's ability to satisfy its 
     payment obligations to the Fund by borrowing or financing 
     with equity capital, or through issuance of securities of the 
     defendant participant or its affiliated group to the Fund;
       (6) the defendant participant's ability to delay 
     discretionary capital spending; and
       (7) any other factor that the administrator considers 
     relevant.
       (C) Term.--A financial hardship adjustment under this 
     paragraph shall have a term of 5 years unless the 
     administrator determines at the time the adjustment is made 
     that a shorter or longer period is appropriate in the light 
     of the financial condition of the defendant participant and 
     its affiliated group and other relevant factors, provided 
     that a financial hardship adjustment under this paragraph 
     shall terminate automatically in the event that the defendant 
     participant holding the adjustment files a petition under 
     title 11, United States Code.
       (D) Renewal.--A defendant participant may renew a hardship 
     adjustment upon expiration by demonstrating that it remains 
     justified. Such renewed hardship adjustments shall have a 
     term of 5 years unless the administrator determines at the 
     time of the renewed adjustment that a shorter or longer

[[Page S1309]]

     period is appropriate in the light of the financial 
     condition of the defendant participant and its affiliated 
     group and other relevant factors, provided that a renewed 
     financial hardship adjustment under this paragraph shall 
     terminate automatically in the event that the defendant 
     participant holding the adjustment files a petition under 
     title 11, United States Code.
       (E) Procedure.--
       (1) The Administrator shall prescribe the information to be 
     submitted in applications for adjustments under this 
     paragraph.
       (2) All audited financial information required under this 
     paragraph shall be as reported by the defendant participant 
     in its 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. Any defendant participant that 
     does not file reports with the Securities and Exchange 
     Commission or which does not have audited financial 
     statements shall submit financial statements prepared 
     pursuant to generally accepted accounting principles. The 
     chairman, chief executive officer, and chief financial 
     officer of the defendant participant shall certify under 
     penalty of law the completeness and accuracy of the financial 
     statements provided under this sub-paragraph.
       (3) The chairman, chief executive officer, and chief 
     financial officer of the defendant participant shall certify 
     that any projected information and analyses submitted to the 
     administrator were made in good faith and are reasonable and 
     attainable.
       (b) Conforming Changes.--
       At page 177, line 10, strike ``hardship and''.
       At page 178, lines 19-20, strike ``financial hardship 
     adjustments under paragraph (2) and''.
       At page 178, lines 22-23, strike ``--(A).''.
       At page 179, line 2, insert a period after ``(k)(1)(A)'' 
     and delete ``;or''.
       At pages 179-181, strike line 10 on page 179 through line 2 
     on page 181.
       At page 181, at line 3: Insert ``RULEMAKING AND'' before 
     ``ADVISORY''.
       At page 181, line 5: Strike ``shall'' and insert ``may''.
       At page 181, following line 14, insert: ``The Administrator 
     may adopt rules consistent with this Act to make the 
     determination of hardship and inequity adjustments more 
     efficient and predictable.''.
       At page 197, line 8, strike ``HARDSHIP AND''.
       At page 197, line 15, strike ``hardship and''.
       At page 197, line 19, strike ``hardship and''.
       At page 197, lines 24 and 25, strike ``severe financial 
     hardship or''.

     SEC. 3. STEPDOWNS AND FUNDING HOLIDAYS.

       (a) At page 205, line 20, strike ``The'' and insert: 
     ``Except as otherwise provided in this paragraph, the''
       (b) At page 205, lines 22 through 24 strike: ``, except 
     with respect to defendant participants in Tier I, Subtiers 2 
     and 3, and class action trusts'' and insert the following:
       ``. The reductions under this subsection shall not apply to 
     defendant participants in Tier I, subtiers 2 and 3, and class 
     action trusts. For defendant participants whose payment 
     obligation has been limited under section 204( c) or who have 
     received a financial hardship adjustment under section 
     204(e)(2), aggregate potential reductions under this 
     subsection shall be calculated on the basis of the defendant 
     participant's tier and subtier without regard to such 
     limitation or adjustment. If the aggregate potential 
     reduction under this subsection exceeds the reduction in the 
     defendant participant's payment obligation due to the 
     limitation under section 204( c) and the financial hardship 
     adjustment under section 204(e)(2), then the defendant 
     participant's payment obligation shall be further reduced by 
     the difference between the potential reduction provided under 
     this subsection and the reductions that the defendant 
     participant has already received due to the application of 
     the limitation provided in section 204(c) and the financial 
     hardship adjustment provided under section 204(e)(2). If the 
     reduction in the defendant participant's payment obligation 
     due to the limitation provided in section 204(c) and any 
     financial hardship adjustment provided under section 
     204(e)(2) exceeds the amount of the reduction provided in 
     this subsection, then the defendant participant's payment 
     obligation shall not be further reduced under this 
     paragraph.''
       (c) At page 207, line 10 through 12, strike the text 
     following ``except'' in line 10 and insert ``as otherwise 
     provided under this paragraph. The reductions or waivers 
     provided under this subsection shall not apply to defendant 
     participants in Tier I, subtiers 2 and 3, and class action 
     trusts. For defendant participants whose payment obligation 
     has been limited under section 204(c) or who have received a 
     financial hardship adjustment under section 204(e)(2), 
     aggregate potential reductions or waivers under this 
     subsection shall be calculated on the basis of the defendant 
     participant's tier and subtier without regard to such 
     limitation or adjustment. If the aggregate potential 
     reductions or waivers under this subsection exceed the 
     reduction in the defendant participant's payment obligation 
     due to the limitation under section 204(c) and the financial 
     hardship adjustment under section 204(e)(2), then the 
     defendant participant's payment obligation shall be further 
     reduced by the difference between the potential reductions or 
     waivers provided under this subsection and the reductions 
     that the defendant participant has already received due to 
     the application of the limitation provided in section 204(c) 
     and the financial hardship adjustment provided under section 
     204( e )(2). If the reduction in the defendant participant's 
     payment obligation due to the limitation provided in section 
     204(c) and any the financial hardship adjustment provided 
     under section 204(e)(2) exceeds the amount of the reductions 
     or waivers provided in this subsection, then the defendant 
     participant's payment obligation shall not be further reduced 
     under this paragraph.''

     SEC. 4. ECONOMICALLY DISTRESSED INDUSTRIES.

       (a) On page 145, between lines 8 and 9, insert the 
     following:
       ``(4) Economically Distressed Industry.--The term 
     ``economically distressed industry'' means an industry, 
     defined by a primary 5-digit NAICS code, wherein two or more 
     defendant participants are in Subtier of Tier II, under 
     sections 202 and 203, and at least two-thirds of such Tier II 
     defendant participants suffered net operating losses in their 
     U.S. manufacturing business in 2005.''
       (b) On page 204, line 3, insert ``-- (i)'' before 
     ``impose''.
       On page 204, line 6, strike the period and insert ``; or''.
       On page 204, insert between lines 6 and 7 the following:
       ``(ii) notwithstanding paragraph (1), impose in any year a 
     surcharge under this subsection on any defendant participant 
     in an economically distressed industry in excess of 15 
     percent of the amount set forth for Tier II, Subtier 1 
     defendant participants under section 203(c)(2)(A).''
                                 ______
                                 
  SA 2851. Mr. KYL submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 310, lines 15-16, strike ``effect'' and insert the 
     following: ``;provided, however, that any provision of such 
     an injunction channeling asbestos claims to such a trust for 
     resolution shall be of no force and effect.''
       On page 312, line 18, strike ``Notwithstanding'' and all 
     that follows through ``retain such jurisdiction.''
       On pages 359-60, strike subparagraphs (7) and (8) of 
     subsection 405(g) and insert the following:
       ``(7) Establishment of master asbestos trust.--
       (A) Creation.--Within 120 days after the determination of 
     the Administrator under paragraph (1), the Administrator 
     shall create a trust to be the successor to the asbestos 
     trusts and any class action trust, to receive funds equal to 
     the amount determined by the Administrator to be necessary to 
     pay the remaining aggregate obligations to the asbestos 
     trusts and any class action trust under paragraphs 1(A)(iii) 
     and 1(B), and to use such funds for the exclusive purpose of 
     providing benefits in accordance with the terms of this 
     [master trust section?] to persons who would have held valid 
     asbestos claims against the asbestos trusts or any class 
     action trust had the Fairness in Asbestos Resolution Act of 
     [2006] not been enacted and to otherwise defray the 
     reasonable expenses of administering the master trust.
       (B) Jurisdiction.--The United States District Court for the 
     District of Columbia shall have exclusive jurisdiction, 
     without regard to amount in controversy, over the master 
     trust and all civil actions involving the application and 
     construction of this subparagraph and the trust documents, 
     including any action for the payment of benefits due under 
     the terms of this subparagraph after exhaustion of trust 
     remedies and any action for breach of fiduciary duty on the 
     part of any fiduciary of the master trust.
       (C) Trustees.--The district court shall appoint, upon 
     petition by the Administrator after consultation with the 
     Advisory Committee, three trustees to administer the master 
     trust. Each trustee, and any successor to each trustee, must 
     be independent, free of any adverse interest and have 
     sufficient qualifications and experience to fulfill the 
     responsibilities described in this section.
       (D) Trust Advisory Committee.--The Administrator, in 
     consultation with the Advisory Committee, shall appoint three 
     persons to represent the interests of trust beneficiaries as 
     members of a trust advisory committee to consult with and 
     advise the trustees respecting the administration of the 
     master trust and resolution of asbestos claims. At least one 
     of the members of the trust advisory committee shall be 
     selected from among individuals recommended by recognized 
     national labor federations, and at least one of the members 
     of the trust advisory committee shall be experienced in 
     representing the interests of trust beneficiaries.
       (E) Legal Representative.--The district court shall 
     appoint, upon petition by the Administrator after 
     consultation with the Advisory Committee, a legal 
     representative of persons who may in the future have claims 
     against the master trust for the purpose of protecting the 
     rights of such persons respecting the master trust and 
     consulting with and advising the trustees respecting the 
     administration of the master trust and resolution of asbestos 
     claims. The legal representative,

[[Page S1310]]

     and any successor to the legal representative, must be 
     independent, free of any adverse interest and have sufficient 
     qualifications and experience to fulfill the responsibilities 
     described in this section. The legal representative shall 
     have standing to appear and be heard as a representative of 
     the future asbestos claimants in any civil action before the 
     district court relating to the master trust. The legal 
     representative shall not represent the interests of any 
     person who has filed a claim for benefits against the master 
     trust with respect to such claim.
       (F) Trust Documents.--The Administrator, in consultation 
     with the Advisory Committee, shall create such trust 
     documents as may be necessary to create and govern the 
     operations of the master trust. The trust documents shall 
     contain provisions that (i) address the payment of 
     compensation to and reimbursement of necessary and reasonable 
     expenses of the trustees, trust advisory committee members 
     and legal representative, and appointment of successors to 
     such persons, subject to approval by the district court in 
     the case of successors to the trustees and legal 
     representative, and (ii) provide for the master trust's 
     obligation to defend and indemnify the Administrator, 
     trustees, members of the trust advisory committee, legal 
     representative and their respective successors against and 
     from legal actions and related losses to the extent that a 
     corporation is permitted under the laws of Delaware to defend 
     and indemnify its officers and directors.
       (G) Duty of Trustees.--The trustees shall administer the 
     master trust in accordance with the terms of this 
     subparagraph and the Trust Documents for the exclusive 
     purpose of providing benefits to persons with valid claims 
     against the master trust and otherwise defraying the 
     reasonable expenses of administering the master trust, and 
     shall manage and invest the assets of the trust with the 
     care, skill, prudence, and diligence, under like 
     circumstances prevailing at the time, that a prudent person 
     acting in like capacity and manner would use.
       (H) Claims Resolution Procedures.--The trustees, in 
     consultation with the trust advisory committee and the legal 
     representative, shall adopt claims resolution procedures that 
     provide for fair and expeditious payment of benefits to all 
     persons described in subpart A of this subparagraph. The 
     claims resolution procedures adopted and implemented by the 
     trustees shall contain the following features:
       (i) pro rata distributions of award amounts that are 
     subject to adjustment, if necessary, based on periodic 
     evaluations of the value of the master trust's assets and 
     estimates of the numbers and values of present and future 
     asbestos claims for benefits that may be awarded by the 
     master trust and other mechanisms that provide reasonable 
     assurance that the master trust will value, and be in a 
     financial position to pay, similarly situated asbestos claims 
     presented to it that involve similar diseases in 
     substantially the same manner;
       (ii) proof requirements, claim submission procedures, and 
     claim evaluation and allowance procedures that provide for 
     expeditious filing and evaluation of all asbestos claims 
     submitted to the master trust;
       (iii) provisions for priority review and payment of 
     claimants whose circumstances require expedited evaluation 
     and compensation;
       (iv) exposure requirements for asbestos claimants to 
     qualify for a remedy that fairly reflect the legal 
     responsibility of at least one entity whose liabilities were 
     channeled to an asbestos trust or any class action trust; and
       (v) review and dispute resolution procedures for disputes 
     regarding the master trust's disallowance or other treatment 
     of claims for benefits.
       (I) Medical Criteria.--The trustees, in consultation with 
     the trust advisory committee and the legal representative, 
     shall adopt and maintain uniform medical criteria that fairly 
     reflect a current state of applicable law and scientific and 
     medical knowledge. The trustees may adopt the medical 
     criteria of section 121.
       (J) Award Amounts.--The trustees, in consultation with the 
     trust advisory committee and the legal representative, shall 
     adopt a matrix of award amounts for disease categories that 
     applies to all claimants who qualify for payment under the 
     medical criteria and claims resolution procedures. The 
     trustees may adopt the matrix of award amounts of section 131 
     or such other matrix that the trustees determine provides 
     similar benefits for similar claims and fairly reflects the 
     liability of the entities whose liabilities were channeled to 
     the asbestos trusts and any class action trust.
       (K) Payments to Claimants.--The trustees shall pay each 
     qualifying claimant a benefit equal to the product of the 
     master trust payment percentage and the award amount to such 
     claimant. The master trust payment percentage at any given 
     time shall be determined by the trustees based on their 
     periodic evaluation of the master trust's assets and 
     projected claims as described in subpart (H)(i) of this 
     subparagraph.
       (L) Amendments.--The trustees, in consultation with the 
     trust advisory committee and legal representative, may amend 
     the trust documents, the claims resolution procedures, the 
     medical criteria and the award matrix to the extent necessary 
     to more effectively and efficiently carry out the purpose of 
     the master trust. Further, if the substantive consolidation 
     of the asbestos trusts and any class action trust effected by 
     this subsection is held to be unconstitutional, the trustees 
     shall adopt amendments to the trust documents, claims 
     resolution procedures, medical criteria and award matrix as 
     may be necessary to bring the master trust in compliance with 
     the Constitution, including if necessary amendments 
     requiring, for each such trust, separate claims resolution 
     procedures, award amounts and accounting of assets and 
     liabilities.
       (8) Payment To Master Trust.--The amount determined by the 
     Administrator to be necessary to pay the remaining aggregate 
     obligations to the asbestos trusts and any class action trust 
     under paragraphs 1(A)(iii) and 1(B) shall be transferred to 
     the master trust within 90 days of termination under this 
     subsection. Any individual with a valid asbestos claim 
     against any asbestos trust or class action trust shall be 
     entitled to seek relief on account of such claim from the 
     master trust described in subparagraph (7) in accordance with 
     the provisions of such subparagraph.''
       On page 357, strike lines 12 through 24 and insert the 
     following:
       ``(B) Remaining Obligations.--For purposes of subparagraph 
     (A)(ii)(II), the remaining obligations to the asbestos trust 
     of the debtor and the class action trust shall be determined 
     by multiplying the amount of assets transferred to the Fund 
     by such debtor or class action trust by the applicable 
     percentage set forth in the following schedule depending on 
     the year in which a termination shall take effect under 
     paragraph (2). The applicable percentage shall be adjusted 
     between years by quarter-annual increments.
Year after Enactment in Which the Termination is EApplicable Percentage
1................................................................100.00
2.................................................................93.95
3.................................................................87.98
4.................................................................82.40
5.................................................................76.97
6.................................................................71.66
7.................................................................66.50
8.................................................................61.48
9.................................................................56.61
10................................................................52.01
11................................................................47.65
12................................................................43.52
13................................................................39.62
14................................................................35.96
15................................................................32.55
16................................................................29.36
17................................................................26.39
18................................................................23.65
19................................................................21.11
20................................................................18.76
21................................................................16.62
22................................................................14.66
23................................................................12.86
24................................................................11.24
25.................................................................9.78
26.................................................................8.48
27.................................................................7.32
28.................................................................6.29
29.................................................................5.37
30.................................................................4.55
31.................................................................3.83
32.................................................................3.20
33.................................................................2.66
34.................................................................2.18
35.................................................................1.77
36.................................................................1.42
37.................................................................1.13
38.................................................................0.89
39.................................................................0.70
40.................................................................0.54
41.................................................................0.40
42.................................................................0.29
43.................................................................0.19
44.................................................................0.12
45.................................................................0.05
46 and thereafter................................................0.00''

       On page 360, line 21, strike the period and insert the 
     following:
       ``; provided, however, that any individual who would have 
     held a valid asbestos claim against any asbestos trust or 
     class action trust had the Fairness in Asbestos Resolution 
     Act not been enacted may obtain relief on account of such 
     claim only from the master trust described in subparagraph 
     (g)(7) in accordance with the provisions of such 
     subparagraph.''
       On page 364, line 4, strike ``; and'' and insert a period.
       On page 364, strike lines 5-14.
                                 ______
                                 
  SA 2852. Mr. DURBIN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 243, strike lines 16 through 22.
                                 ______
                                 
  SA 2853. Mr. DURBIN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 243, strike line 6 and all that follows through 
     page 244, line 14, and insert the following:

[[Page S1311]]

       (b) Borrowing Authority.--The Administrator is authorized 
     to borrow, in any calendar year, an amount not to exceed 
     anticipated contributions to the Fund in the following 
     calendar year for purposes of carrying out the obligations of 
     the Fund under this Act.
                                 ______
                                 
  SA 2854. Mr. DURBIN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 243, strike lines 16 through 22 and insert the 
     following:
       (2) Federal financing bank.--
       (A) In general.--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) in an amount not 
     to exceed $5,000,000,000 for performance of the 
     Administrator's duties under this Act for the first 5 years.
       (B) Interest to be charged.--
       (i) In general.--Any funds borrowed under subparagraph (A) 
     shall be charged interest at the private market prime lending 
     rate and repaid not later than 18 months after the date on 
     which such funds were borrowed.
       (ii) Surcharge.--The Administrator shall impose a surcharge 
     on defendants and insurers to meet the repayment obligations 
     under clause (i) and paragraph (4).
                                 ______
                                 
  SA 2855. Mr. DURBIN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 186, between lines 4 and 5, insert the following:
       (2) Insufficient funds in years 1 though 6.--
       (A) In general.--Notwithstanding any provision of sections 
     202 or 203 or this section, during the 6-year period 
     beginning on the date of enactment of this Act, if at any 
     time during such period the Administrator determines that 
     there are insufficient funds available to pay all qualifying 
     claims that have been received and to satisfy all other 
     obligations of the Fund, the Administrator shall impose on 
     each defendant participant in Tier I and Tier II a surcharge 
     in such amounts as necessary to meet the cost of paying such 
     claims and satisfying such other obligations.
       (B) Pro rata basis.--Any surcharge imposed under 
     subparagraph (A) shall be imposed on a prorated basis in 
     accordance with the liability of each defendant participant 
     established under sections 202 and 203.
       On page 186, line 5, strike ``(2)'' and insert ``(3)''.
       On page 186, line 15, strike ``(3)'' and insert ``(4)''.
       On page 243, strike lines 7 through 15, and insert the 
     following:
       (3) Borrowing capacity.--The Administrator is authorized to 
     borrow, in any calendar year, an amount not to exceed 
     anticipated contributions to the Fund in the following 
     calendar year for purposes of carrying out the obligations of 
     the Fund under this Act.
                                 ______
                                 
  SA 2856. Mr. DURBIN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 67, between lines 10 and 11, insert the following:
       (g) Preconditions for Certification.--For the purpose of 
     this section, the Administrator is prohibited from certifying 
     the Fund as operational until the Administrator has--
       (1) finalized the tier designation and amount of assessment 
     to each participating defendant or insurer; and
       (2) determined from such designations that such assessments 
     will produce the annual statutory revenues required under 
     title II.
                                 ______
                                 
  SA 2857. Mr. DURBIN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 183, between lines 17 and 18, insert the following:
       (4) Certain consolidations prohibited.--Notwithstanding 
     paragraphs (1) through (3), the following consolidations are 
     prohibited:
       (A) Any consolidation, including a consolidation involving 
     intra-company or inter-company affiliates, that would lessen 
     the amount that otherwise would be collected by the 
     Administrator under Title II.
       (B) Any consolidation, including a consolidation involving 
     intra-company or inter-company affiliates, that would reduce 
     the payment amount of any participating defendant in a 
     consolidation that has greater liabilities than another 
     participating defendant in the same consolidation.
                                 ______
                                 
  SA 2858. Mr. DURBIN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 14, strike line 19 and all that follows through 
     page 15, line 2, and insert the following:
       (6) Collateral source compensation.--
       (A) In general.--The term ``collateral source 
     compensation'' means the net 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 final judgment or settlement for an asbestos-related 
     injury that is the subject of a claim filed under section 
     113.
       (B) Net compensation.--Amounts paid or incurred by the 
     claimant for legal or related expenses in connection with the 
     asbestos-related injury shall be excluded in computing the 
     reduction under this paragraph. Such legal or related 
     expenses may be evidenced by an award, written agreement, or 
     court order in a State or Federal proceeding or by such other 
     evidence as the Administrator may require.
                                 ______
                                 
  SA 2859. Mr. DURBIN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 123, between lines 2 and 3, insert the following:

     SEC. 122. EXTENSION OF CERTAIN BENEFITS TO OTHERS SUBJECT TO 
                   COMMUNITY EXPOSURE TO ASBESTOS.

       (a) Waiver for Residents of West Chicago, Illinois.--The 
     Administrator shall waive the exposure requirements under 
     this subtitle for individuals who lived or worked within 10 
     miles of the former W.R. Grace & Company facility in West 
     Chicago, Illinois, for at least 12 consecutive months before 
     December 31, 2004. Claimants under this subsection shall 
     provide such supporting documentation as the Administrator 
     shall require.
       (b) Claims Procedures for West Chicago, Illinois.--The 
     claims procedures described under section 121(g)(8) relating 
     to Libby, Montana, claimants shall also apply to any eligible 
     claimants who resided within 10 miles of the former W.R. 
     Grace & Company facility in West Chicago, Illinois.
       (c) West Chicago, Illinois 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 individuals who reside, or resided, 
     within 10 miles of the former W.R. Grace & Company facility 
     in West Chicago, Illinois. The payment of any such medical 
     expenses shall not be collateral source compensation, as 
     defined under section 134(a).
                                 ______
                                 
  SA 2860. Mr. SCHUMER submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 392, after line 5, insert the following:

     SEC. 503. INTERSTATE COMPACTS AND CAPTIVE INSURANCE COMPANY.

       (a) Definition of Person.--The term person as defined in 
     section 3(13) shall not include the captive insurance company 
     established and funded under title III of division K of the 
     Consolidated Appropriations Resolution, 2003 (Public Law 108-
     7; 117 Stat. 517).
       (b) Definition of State.--The term State as defined in 
     section 3(14) shall include entities created by interstate 
     compact.
                                 ______
                                 
  SA 2861. Mr. FEINGOLD submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 199, line 25, insert ``in Tier II'' after 
     ``participant''.
                                 ______
                                 
  SA 2862. Mr. FEINGOLD submitted an amendment intended to be proposed

[[Page S1312]]

to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 392, after line 5, insert the following:

     SEC. 503. NON-SEVERABILITY.

       Notwithstanding section 226(f), if any provision of this 
     Act, an amendment made by this Act, or the application of 
     such provision or amendment to any person or circumstance is 
     held to be unconstitutional, the remainder of this Act, the 
     amendments made by this Act, and the application of the 
     provisions of such to any person or circumstance shall have 
     no force and effect.
                                 ______
                                 
  SA 2863. Mr. FEINGOLD submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 325, strike line 17 and all that follows through 
     page 326, line 2, and insert the following:
       (4) Dismissal.--
       (A) In general.--Except as provided under subsection 
     (d)(2), no judgment other than a judgment for dismissal may 
     be entered in any action asserting an asbestos claim 
     (including any claim described in paragraph (2)) in any 
     Federal or State court on or after the date of enactment of 
     this Act.
       (B) Dismissal on motion.--A court may dismiss any action 
     asserting an asbestos claim (including any claim described in 
     paragraph (2)) on--
       (i) motion by any party to such action; or
       (ii) its own motion.
       (C) Denial of motion.--If a court denies a motion to 
     dismiss under subparagraph (B)(i), it shall stay further 
     proceedings in any such action until final disposition of any 
     appeal taken under this Act.
       (D) Exception for pending claims in court.--
       (i) In general.--Except as provided under subsection (d)(2) 
     and clause (ii) of this subparagraph, an action asserting an 
     asbestos claim that is pending on the date of enactment of 
     this Act in any Federal or State court may not be dismissed 
     under subparagraph (A), but any stay shall continue in 
     effect, if the plaintiff (or the personal representative of 
     the plaintiff, if the plaintiff is deceased or incompetent) 
     in such action has filed a claim, or is still entitled under 
     section 113(b) to file a claim, with the Fund with respect to 
     the disease, condition, or injury forming the basis of such 
     action.
       (ii) Dismissal allowed if claim is adjudicated.--An action 
     exempt from dismissal under clause (i) shall be dismissed 
     if--

       (I) the plaintiff's claim under the Fund has been finally 
     adjudicated and the award, if any, to the plaintiff from the 
     Fund has been paid in full;
       (II) the plaintiff's claim under the Fund has been finally 
     adjudicated and the claimant is not entitled to receive a 
     monetary award or medical monitoring under subtitle D of 
     title I;
       (III) the plaintiff's claim has been resolved and paid in 
     full under section 106(f); or
       (IV) after the Administrator certifies to Congress that the 
     Fund has become operational and paying all valid asbestos 
     claims at a reasonable rate, the plaintiff's claim is pending 
     in any venue other than a venue described under section 
     405(g)(3).

       (E) Notice.--The Administrator shall send notice to the 
     appropriate Federal or State court of any adjudication of any 
     claim with the Fund filed by a plaintiff in an action that 
     has been stayed under subparagraph (D)(i).
       (F) Rule of construction.--Nothing in this paragraph shall 
     be construed to limit dismissal, at any time, of a claim 
     pending in Federal or State court for reasons independent of 
     the enactment of this Act.
                                 ______
                                 
  SA 2864. Mr. BIDEN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 67, between lines 10 and 11, insert the following:
       (g) Preconditions for Certification.--For the purpose of 
     this section, the Administrator is prohibited from certifying 
     the Fund as operational until the Administrator has--
       (1) finalized the tier designation and amount of assessment 
     to each participating defendant or insurer; and
       (2) determined from such designations that such assessments 
     will produce the annual statutory revenues required under 
     title II.
                                 ______
                                 
  SA 2865. Mr. BIDEN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 162, line 22 strike all through page 163, line 22, 
     and insert the following:
       (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 revenues of such person or affiliated group. 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.--Except as adjusted by paragraph (3), each 
     person or affiliated group within each subtier shall pay, on 
     an annual basis, the following:
       (A) Subtier 1: $27,500,000.
       (B) Subtier 2: $24,750,000.
       (C) Subtier 3: $22,000,000.
       (D) Subtier 4: $19,250,000.
       (E) Subtier 5: $16,500,000.
       (3) Adjustments.--The following persons or affiliated 
     groups in Tier II shall have their annual payment to the Fund 
     adjusted as follows:
       (A) Each person or affiliated group with prior asbestos 
     expenditures equal to, or greater than, $200,000,000 but less 
     than $300,000,000 shall pay, on an annual basis, an amount 
     equal to 200 percent of the amount for the subtier to which 
     that person or affiliated group is assigned under this 
     subsection.
       (B) Each person or affiliated group with prior asbestos 
     expenditures equal to, or greater than, $300,000,000 but less 
     than $400,000,000 shall pay, on an annual basis, an amount 
     equal to 250 percent of the amount for the subtier to which 
     that person or affiliated group is assigned under this 
     subsection.
       (C) Each person or affiliated group with prior asbestos 
     expenditures equal to, or greater than, $400,000,000 but less 
     than $500,000,000 shall pay, on an annual basis, an amount 
     equal to 300 percent of the amount for the subtier to which 
     that person or affiliated group is assigned under this 
     subsection.
       (D) Each person or affiliated group with prior asbestos 
     expenditures equal to, or greater than, $500,000,000 shall 
     pay, on an annual basis, an amount equal to 350 percent of 
     the amount for the subtier to which that person or affiliated 
     group is assigned under this subsection.
                                 ______
                                 
  SA 2866. Mr. BIDEN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 46, line 20, strike ``date of enactment of this 
     Act'' and insert ``effective date of this subsection''.
       On page 392, after line 5, insert the following:

                        TITLE VI--EFFECTIVE DATE

     SEC. 601. EFFECTIVE DATE.

       Notwithstanding any other provision of this Act, section 
     106(f) and section 403 shall not become effective until--
       (1) the Administrator has met the public notice 
     requirements for defendant and insurer participants under 
     section 204(i)(6)(A)(ii) and section 212(b)(1);
       (2) defendant and insurer participants have made their 
     initial payments under section 204(i)(6)(C) and section 
     212(e); and
       (3) the Administrator has certified that the aggregate 
     payments by defendant and insurer participants are sufficient 
     to satisfy the requirements of section 204(h)(1) and section 
     212(a)(3)(C)(i) for the first calendar year of the Fund.
                                 ______
                                 
  SA 2867. Mr. BIDEN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 291, between lines 12 and 13, insert the following:
       (c) Judicial Stays.--Notwithstanding subsections (d) and 
     (e) of section 403, if this Act is stayed by judicial order, 
     pending judicial review of the constitutionality or 
     enforceability of this Act, asbestos claims shall be 
     permitted to continue in Federal or State court for as long 
     as such stay remains in effect.
       On page 291, line 13, strike ``(c)'' and insert ``(d)''.
                                 ______
                                 
  SA 2868. Mr. BIDEN submitted an amendment intended to be proposed to

[[Page S1313]]

amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 319, strike lines 3 through 18, and insert the 
     following:
       (i) before the date of enactment of this Act, the 
     settlement agreement or confirmation of settlement was 
     authorized by the settling defendant or the settling insurer, 
     and confirmed by, or with, counsel for the settling defendant 
     or settling insurer;
       On page 320, between lines 6 and 7, insert the following:
       (B) Agreements dealing with more than 1 claim.--For the 
     purposes of subparagraph (A), a settlement agreement which 
     includes more than 1 asbestos claim shall only be enforceable 
     as to any asbestos claim settled within such settlement 
     agreement if--
       (i) before the date of enactment of this Act, the specific 
     asbestos claim was settled under such settlement agreement 
     for a specific sum with a specific named plaintiff; and
       (ii) the specific named plaintiff has complied with 
     subparagraph (A)(iii).
       On page 320, line 7, strike ``(B)'' and insert ``(C)''.
       On page 320, line 11, strike ``(C)'' and insert ``(D)''.
       On page 320, line 15, strike ``(D)'' and insert ``(E)''.
       On page 320, line 21, strike ``(E)'' and insert ``(F)''.
                                 ______
                                 
  SA 2869. Mr. BIDEN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 344, line 16, insert ``(i)'' before ``who''.
       On page 344, line 17, strike ``calendar'' and insert 
     ``fiscal''.
       On page 344, line 19, insert ``and (ii)'' before ``who have 
     received''.
       On page 347, strike line 13 and all that follows through 
     ``Administrator,'' on line 15, and insert the following:
       (c) Certification.--The Administrator shall certify in the 
     annual report required under subsection (a)--
       (1) that
       On page 347, line 18, strike ``(1)'' and insert ``(A)''.
       On page 347, line 22, strike ``(2)'' and insert ``(B)''.
       On page 347, line 24, strike the period and insert ``; 
     and''.
       On page 347, after line 24, insert the following:
       (2) that--
       (A) 100 percent of the asbestos claimants who filed claims 
     during the prior fiscal year, and who were determined to be 
     eligible to receive compensation under this Act, received the 
     compensation to which they are entitled during that fiscal 
     year; and
       (B) 100 percent of the total obligations due to be paid to 
     eligible claimants in the prior fiscal year have been paid.
       On page 350, strike line 4 and all that follows through 
     page 351, line 21.
       On page 351, line 24, insert ``Initial'' before 
     ``Analysis''.
       On page 352, line 5, strike ``when'' and insert ``the date 
     on which''.
       On page 352, line 6, insert ``in full'' after ``claims''.
       On page 352, line 10, insert a period after ``claimants''.
       On page 352, lines 10 and 11, strike ``and the public.'' 
     and all that follows through ``Fund'' on line 15.
       On page 353, line 6, strike the semicolon and insert ``; 
     or''.
       On page 353, line 7, strike ``reform'' and all that follows 
     through line 13.
       On page 353, line 14, strike ``changes'' and insert 
     ``increases''.
       On page 353, lines 16 and 17, strike ``, or changes in 
     award values)'' and insert ``in order to keep the Fund 
     operational''.
       On page 353, line 17, strike ``; or'' and insert a period.
       On page 353, strike lines 18 through 19.
       On page 354, line 6, strike ``except'' through 
     ``212(a)(3)(C).'' on line 15.
       On page 355, line 7, insert ``and'' after ``fraud,''.
       On page 355, line 8, strike all after ``mesothelioma'' 
     through line 10 and insert a semicolon.
       On page 355, strike lines 11 through 14.
       On page 355, line 15, strike ``(D)'' and insert ``(C)''.
       On page 355, line 18, strike ``(E)'' and insert ``(D)''.
       On page 355, line 20, strike ``(F)'' and insert ``(E)''.
       On page 355, strike line 22 and all that follows through 
     page 356, line 4, and insert the following:
       (3) Termination plan.--
       (A) In general.--Any recommendation of termination shall 
     include a plan for terminating the affairs of the Fund (and 
     the program generally) within a defined period.
       (B) Plan requirements.--The termination plan shall--
       (i) specify the date on which the Fund will no longer be 
     able to timely process and pay all eligible claims that are 
     filed with the Fund while satisfying the other financial 
     obligations of the Fund; and
       (ii) provide for paying in full all such eligible claims 
     and all claims resolved before that date.
       On page 356, between lines 4 and 5, insert the following:
       (4) Periodic reviews.--The Administrator shall provide 
     updates on any shortfall analysis to Congress every 6 months, 
     or at such shorter intervals as the Administrator determines 
     appropriate.
       On page 356, line 5, strike ``(4)'' and insert ``(5)''.
       On page 356, line 14, strike ``titles I (except subtitle A) 
     and II and''.
       On page 356, line 15, strike ``403 and 404(e)(2)'' and 
     insert ``113, 403, 404, and 406''.
       On page 356, line 19 insert ``(I)'' after ``(ii)''.
       On page 356, line 19 strike ``part of the'' and all that 
     follows through ``determines'' on line 24, and insert ``a 
     result of the annual report, shortfall analysis or periodic 
     reviews the Administrator determines''.
       On page 356, line 25, strike ``claims are resolved'' and 
     insert ``eligible claims are received''.
       On page 357, line 3, strike ``221when'' and insert ``221 
     when''.
       On page 357, line 3, insert ``such eligible claims and all 
     previously'' after ``all''.
       On page 357, line 7 strike ``(I)'' and insert ``(aa)''.
       On page 357, line 9 strike ``(II)'' and insert ``(bb)''.
       On page 357, line 11, strike the period and insert ``; 
     or''.
       On page 357, between lines 11 and 12, insert the following:
       (II)(aa) the Administrator has failed to make the 
     certifications under subsection (c); or
       (bb) the Government Accountability Office has failed to 
     report, pursuant to subsection (j), that the Administrator's 
     certifications under subsection (c) are accurate.
       On page 358, line 2, after ``effect'' insert ``either--
       (A) on the date which the Administrator has determined is 
     the date the Fund will not have sufficient funds to pay all 
     eligible claims filed with the Fund and all claims resolved 
     prior to that date while satisfying its financial 
     obligations; or
       (B) ''.
       On page 358, line 3, strike ``180'' and insert ``90''.
       On page 358, line 3, strike ``date of a determination of 
     the'' and all that follows through line 6, and insert ``date 
     on which the certifications described in paragraph 
     (1)(A)(iii) failed to occur.''.
       On page 359, strike line 24 and all that follows through 
     page 360, line 4.
       On page 360, line 5, strike ``(8)'' and insert ``(7)''.
       On page 361, line 13, strike ``Mesothelioma claim'' and 
     insert ``Additional claims''.
       On page 361, line 17, insert ``a more serious condition 
     or'' after ``a claim for''.
       On page 361, line 18, insert ``more serious condition or'' 
     after ``unless the''.
       On page 362, line 15, strike ``or''.
       On page 362, line 17, strike the period and insert a 
     semicolon.
       On page 362, between lines 17 and 18, insert the following:
       (iv) any State court in a State where the company has its 
     headquarters or its principal place of business; or
       (v) any State court in a State where the company has at 
     least 10 percent of its employees or 10 percent of its sales.
       On page 362, line 20, strike ``(ii) or (iii)'' and insert 
     ``(ii), (iii), (iv), or (v)''.
       On page 363, strike line 1 and all that follows through 
     line 18.
       On page 364 strike line 15 and all that follows through 
     page 365 line 4.
       On page 365 between lines 8 and 9, insert ``(j) Government 
     Accountability Office Report.--The Government Accountability 
     Office shall annually review the certifications required in 
     subsection (c), and any relevant supporting documentation, 
     and report to Congress whether these certifications are 
     accurate.
                                 ______
                                 
  SA 2870. Mr. BIDEN submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 143, line 8 strike all through page 144 line 6 and 
     insert the following:
       (7) Asbestos premises claim.--The term ``asbestos premises 
     claim''--
       (A) means an asbestos claim against a current or former 
     premises owner or landowner, or person controlling or 
     possessing premises or land, alleging injury or death caused 
     by exposure to asbestos on such premises or land or by 
     exposure to asbestos carried off such premises or land on the 
     clothing or belongings of another person; and
       (B) includes any such asbestos claim against a current or 
     former employer alleging injury or death caused by exposure 
     to asbestos on premises or land owned, controlled, or 
     possessed by the employer, if that claim is not a claim for 
     benefits under a workers' compensation law or veteran 
     benefits program.

[[Page S1314]]

       (8) Asbestos premises defendant participant.--The term 
     ``asbestos premises defendant participant'' means any 
     defendant participant for which 90 percent or more of its 
     prior asbestos expenditures relate to asbestos premises 
     claims against that defendant participant.
       On page 150, strike lines 1 through page 151 line 16, and 
     insert the following:
       (d) Tiers II Through VIII.--
       (1) In general.--Except as provided in section 204 and 
     subsection (b) of this section, persons or affiliated groups 
     are included in Tier II, III, IV, V, VI, VII, or VIII 
     according to the prior asbestos expenditures paid by such 
     persons or affiliated groups as follows:
       (A) Tier II: $350,000,000 or greater.
       (B) Tier III: $200,000,000 or greater, but less than 
     $350,000,000.
       (C) Tier IV: $75,000,000 or greater, but less than 
     $200,000,000.
       (D) Tier V: $50,000,000 or greater, but less than 
     $75,000,000.
       (E) Tier VI: $10,000,000 or greater, but less than 
     $50,000,000.
       (F) Tier VII: $5,000,000 or greater, but less than 
     $10,000,000.
       (G) Tier VIII: $1,000,000 or greater, but less than 
     $5,000,000.
       (2) Asbestos premises defendant participants.--Asbestos 
     premises defendant participants which would be assigned to 
     Tiers IV, V, VI, or VII according to their prior asbestos 
     expenditures shall instead be assigned to the immediately 
     lower tier, such that an asbestos premises defendant 
     participant which would be assigned to Tier IV shall instead 
     be assigned to Tier V, an asbestos premises defendant 
     participant which would be assigned to Tier V shall instead 
     be assigned to Tier VI, an asbestos premises defendant 
     participant which would be assigned to Tier VI shall instead 
     be assigned to Tier VII, and an asbestos premises defendant 
     participant which would be assigned to Tier VII shall instead 
     be assigned to Tier VIII.
       On page 162, strike line 22 through page 170, line 9, and 
     insert the following:
       (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: $49,500,000.
       (B) Subtier 2: $46,750,000.
       (C) Subtier 3: $44,000,000.
       (D) Subtier 4: $41,250,000.
       (E) Subtier 5: $38,500,000.
       (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: $38,500,000.
       (B) Subtier 2: $35,750,000.
       (C) Subtier 3: $33,000,000.
       (D) Subtier 4: $30,250,000.
       (E) Subtier 5: $27,500,000.
       (e) Tier IV Subtiers.--
       (1) In general.--Each person or affiliated group in Tier IV 
     shall be included in 1 of the 5 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--
       (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: $27,500,000.
       (B) Subtier 2: $24,750,000.
       (C) Subtier 3: $22,000,000.
       (D) Subtier 4: $19,250,000.
       (E) Subtier 5: $16,500,000.
       (f) Tier V Subtiers.--
       (1) In general.--Each person or affiliated group in Tier V 
     shall be included in 1 of the 5 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--
       (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: $16,500,000.
       (B) Subtier 2: $13,750,000.
       (C) Subtier 3: $11,000,000.
       (D) Subtier 4: $8,250,000.
       (E) Subtier 5: $5,500,000.
       (g) Tier VI Subtiers.--
       (1) In general.--Each person or affiliated group in Tier VI 
     shall be included in 1 of the 4 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 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: $3,850,000.
       (B) Subtier 2: $2,475,000.
       (C) Subtier 3: $1,650,000.
       (D) Subtier 4: $550,000.
       (h) Tier VII Subtiers.--
       (1) In general.--Each person or affiliated group in Tier 
     VII shall be included in 1 of the 3 subtiers of Tier VII, 
     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.
       (i) Tier VIII Subtiers.--
       (1) In general.--Each person or affiliated group in Tier 
     VIII shall be included in 1 of the 3 subtiers of Tier VIII, 
     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.
       (j) Tier IX.--
       (1) In general.--Notwithstanding prior asbestos 
     expenditures that might qualify a person or affiliated group 
     to be included in Tiers II, III, IV, V, VI, VII, or VIII, a 
     person or affiliated group shall also be included in Tier IX, 
     if the person or affiliated group--
       (A) is or has at any time been subject to asbestos claims 
     brought under the Act of April 22, 1908 (45 U.S.C. 51 et 
     seq.), commonly known as the Employers' Liability Act, 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 IX shall be in addition 
     to any payment requirement applicable to such person or 
     affiliated group under Tiers II through VIII.
       (3) Subtier 1.--Each person or affiliated group in Tier IX 
     with revenues of $6,000,000,000 or more is included in 
     Subtier 1 and shall make annual payments of $11,000,000 to 
     the Fund.
       (4) Subtier 2.--Each person or affiliated group in Tier IX 
     with revenues of less than $6,000,000,000, but not less than 
     $4,000,000,000 is included in Subtier 2 and shall make annual 
     payments of $5,500,000 to the Fund.
       (5) Subtier 3.--Each person or affiliated group in Tier IX 
     with revenues of less than $4,000,000,000, but not less than 
     $500,000,000 is included in Subtier 3 and shall make annual 
     payments of $550,000 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

[[Page S1315]]

     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 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.
                                 ______
                                 
  SA 2871. Mr. LAUTENBERG submitted an amendment intended to be 
proposed to  amendment SA 2746 proposed by Mr. Frist (for Mr. Specter 
(for himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows: 

       Strike from line 6 on page 321 to line 13 on page 322, and 
     insert in lieu thereof the following:
       (1) In general.--Except as provided under paragraph (2) and 
     section 106(f) of this Act and section 524(j)(3) of title 11, 
     United States Code, as amended by this Act, the remedies 
     provided under this Act shall be the exclusive remedy for any 
     asbestos claim, including any claim described in subsection 
     (e)(2), under any Federal or State law.
       (2) Civil actions at trial.--
       (A) This Act shall not be the exclusive remedy for claims 
     in which a defendant is a company or any domestic or foreign 
     subsidiary of that company that does business with the 
     Islamic Republic of Iran.
       (B) In general.--This Act shall not apply to any asbestos 
     claim that--
       i. Is a civil action filed in a Federal or State court (not 
     including a filing in a bankruptcy court);
       ii. Is not part of a consolidation of actions or a class 
     action; and
       iii. On the date of enactment of this Act--
       I. In the case of a civil action which includes a jury 
     trial, is before the jury after its impaneling and 
     commencement of presentation of evidence, but before its 
     deliberations;
       II. In the case of a civil action which includes a trial in 
     which a judge is the trier of fact, is at the presentation of 
     evidence at trial; or
       III. a verdict, final order, or final judgment has been 
     entered by a trial court.
       (C) Nonapplicability.--This Act shall not apply to a civil 
     action described under subparagraph (B) throughout the final 
     disposition of the action.
                                 ______
                                 
  SA 2872. Mr. INHOFE submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 369, line 3, strike all through page 371, line 5 
     and insert the following:
       (e) Contributions to the Asbestos Trust Fund by OSHA 
     Asbestos Violators.--
       (1) In general.--The Administrator shall assess employers 
     or other individuals determined to have violated asbestos 
     statutes, standards, or regulations administered by the 
     Department of Labor and State agencies that are counterparts, 
     for contributions to the Asbestos Injury Claims Resolution 
     Fund.
       (2) Identification of violators.--Each year, the 
     Administrator shall in consultation with the Assistant 
     Secretary of Labor for Occupational Safety and Health, 
     identify all employers that, during the previous year, were 
     subject to final orders finding that they violated standards 
     issued by the Occupational Safety and Health Administration 
     for control of occupational exposure to asbestos (29 C.F.R. 
     1910.1001, 1915.1001, and 1926.1101) or the equivalent 
     asbestos standards issued by any State under section 18 of 
     the Occupational Safety and Health Act (29 U.S.C. 668).
       (3) Assessment for contribution.--The Administrator shall 
     assess each such identified employer or other individual 
     under paragraph (2) for a contribution to the Fund for that 
     year in an amount equal to--
       (A) 2 times the amount of total penalties assessed for the 
     first violation of occupational health statutes, standards, 
     or regulations;
       (B) 4 times the amount of total penalties for a second 
     violation of such statutes, standards, or regulations; and
       (C) 6 times the amount of total penalties for any 
     violations thereafter.
                                 ______
                                 
  SA 2873. Mr. INHOFE submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 376, line 5, strike all through the matter between 
     lines 5 and 6 on page 386.
       On page 370, lines 14 through 16, strike ``and the 
     regulations banning asbestos promulgated under section 501 of 
     this Act),''.
                                 ______
                                 
  SA 2874. Mr. INHOFE submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 370, lines 14 through 16, strike ``and the 
     regulations banning asbestos promulgated under section 501 of 
     this Act),''.
       On page 369, line 3, strike all through page 371, line 5 
     and insert the following:
       (1) In general.--The Administrator shall assess employers 
     or other individuals determined to have violated asbestos 
     statutes, standards, or regulations administered by the 
     Department of Labor and State agencies that are counterparts, 
     for contributions to the Asbestos Injury Claims Resolution 
     Fund.
       (2) Identification of violators.--Each year, the 
     Administrator shall in consultation with the Assistant 
     Secretary of Labor for Occupational Safety and Health, 
     identify all employers that, during the previous year, were 
     subject to final orders finding that they violated standards 
     issued by the Occupational Safety and Health Administration 
     for control of occupational exposure to asbestos (29 C.F.R. 
     1910.1001, 1915.1001, and 1926.1101) or the equivalent 
     asbestos standards issued by any State under section 18 of 
     the Occupational Safety and Health Act (29 U.S.C. 668).
       (3) Assessment for contribution.--The Administrator shall 
     assess each such identified employer or other individual 
     under paragraph (2) for a contribution to the Fund for that 
     year in an amount equal to--
       (A) 2 times the amount of total penalties assessed for the 
     first violation of occupational health statutes, standards, 
     or regulations;
       (B) 4 times the amount of total penalties for a second 
     violation of such statutes, standards, or regulations; and
       (C) 6 times the amount of total penalties for any 
     violations thereafter.
       On page 376, line 5, strike all through the matter between 
     lines 5 and 6 on page 386.
       On page 386, line 6, strike all through page 393, line 7.
                                 ______
                                 
  SA 2875. Mr. INHOFE submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 376, line 4, strike all through page 393, line 7.
       On page 370, lines 14 through 16, strike ``and the 
     regulations banning asbestos promulgated under section 501 of 
     this Act),''.
                                 ______
                                 
  SA 2876. Mr. INHOFE submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 386, line 6, strike all through page 393, line 7.
                                 ______
                                 
  SA 2877. Mrs. CLINTON (for herself, Mr. Kerry, Mr. Lautenberg, and 
Mr. Menendez) submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 392, after line 5, add the following:

     SEC. 503. ASBESTOS EXPOSURE AS THE RESULT OF A NATURAL OR 
                   OTHER DISASTER.

       (a) Medical Claims.--
       (1) In general.--A claimant may file an exceptional medical 
     claim with the Fund under section 121 if --
       (A) such claimant has been exposed to asbestos from any 
     area that is subject to a declaration by the President of a 
     major disaster, as defined under section 102 of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5122), as the result of--
       (i) a natural or other disaster, occurring before, on, or 
     after the date of enactment of this Act, including--

       (I) the attack on the World Trade Center in New York, New 
     York on September 11, 2001; and
       (II) Hurricane Katrina of 2005 in the Gulf Region of the 
     United States; or

       (ii) the clean up and remediation following a disaster 
     described in clause (i); or
       (B) as a result of living with a person who has met the 
     exposure requirements described in subparagraph (A).
       (2) Physician panel.--In reviewing medical evidence 
     submitted by a claimant under paragraph (1), the Physicians 
     Panel shall take into consideration the unique nature of such 
     disasters and the potential for asbestos exposure resulting 
     from such disasters.

[[Page S1316]]

       (b) Preservation of Actions.--Nothing in this Act shall be 
     construed to limit or abrogate any pending or future civil 
     action against the United States Government or any State or 
     local government, or any agency or subdivision thereof, or 
     any former or present officer or employee thereof, in either 
     their official or individual capacities, seeking redress for 
     exposure to asbestos--
       (1) from any area that is subject to a declaration by the 
     President of a major disaster, as defined under section 102 
     of the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5122), as the result of--
       (A) a natural or other disaster, occurring before, on, or 
     after the date of enactment of this Act, including--
       (i) the attack on the World Trade Center in New York, New 
     York on September 11, 2001; and
       (ii) Hurricane Katrina of 2005 in the Gulf Region of the 
     United States; or
       (B) the clean up and remediation following a disaster 
     described in subparagraph (A); or
       (2) as a result of living with a person who has met the 
     exposure requirements described in paragraph (1).
       (c) Natural or Other Disaster Funds.--
       (1) In general.--Nothing in this Act shall be construed to 
     limit or abrogate any existing fund, or preclude the 
     formation of any future fund, for the payment of eligible 
     medical expenses relating to treating asbestos-related 
     disease for individuals exposed to asbestos--
       (A) from any area that is subject to a declaration by the 
     President of a major disaster, as defined under section 102 
     of the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5122), as the result of--
       (i) a natural or other disaster, occurring before, on, or 
     after the date of enactment of this Act, including--

       (I) the attack on the World Trade Center in New York, New 
     York on September 11, 2001; and
       (II) Hurricane Katrina of 2005 in the Gulf Region of the 
     United States; or

       (ii) the clean up and remediation following a disaster 
     described in clause (i); or
       (B) as a result of living with a person who has met the 
     exposure requirements described in subparagraph (A).
       (2) Collateral source compensation exception.--The payment 
     of any medical expense under paragraph (1) shall not be 
     collateral source compensation as defined under section 
     134(a).
       (d) Definition of Person.--The term person as defined in 
     section 3(13) shall not include the captive insurance company 
     established and funded under title III of division K of the 
     Consolidated Appropriations Resolution, 2003 (Public Law 108-
     7; 117 Stat. 517).
                                 ______
                                 
  SA 2878. Mrs. CLINTON (for herself, Mr. Kerry, Mr. Lautenberg, and 
Mr. Menendez) submitted an amendment intended to be proposed to 
amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for himself 
and Mr. Leahy)) to the bill S. 852, to create a fair and efficient 
system to resolve claims of victims for bodily injury caused by 
asbestos exposure, and for other purposes; which was ordered to lie on 
the table; as follows:

       On page 17, line 21, before the period at the end, insert 
     the following: ``, or the captive insurance company 
     established and funded under title III of division K of the 
     Consolidated Appropriations Resolution, 2003 (Public Law 108-
     7; 117 Stat. 517)''.
                                 ______
                                 
  SA 2879. Mr. REID (for Mr. Biden) submitted an amendment intended to 
be proposed to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter 
(for himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 359, strike line 3 and all that follows through 
     page 361, line 23, and insert the following:
       (6) Asbestos trusts and class action trusts.--On and after 
     the date of termination under this subsection, the trust 
     distribution program of any asbestos trust and the class 
     action trust shall be replaced with the medical criteria 
     requirements of section 121.
       (7) Payment to asbestos trusts and class action trusts.--
     The amounts determined under paragraph (1)(B) for payment to 
     the asbestos trusts and the class action trust shall be 
     transferred to the respective asbestos trusts of the debtor 
     and the class action trust within 90 days.
       (h) Nature of Claim After Sunset.--
       (1) In general.--
       (A) Relief.--
       (i) In general.--Except as provided in subparagraphs (B) 
     and (C), on and after the date of termination under 
     subsection (g), any individual with an asbestos claim 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 (g).
       (ii) Rule of construction.--This subparagraph shall not be 
     construed as creating a new Federal cause of action.
       (B) Resolved claims.--An individual who has had a claim 
     resolved by the Fund may not pursue a court action, except 
     that an individual who received an award for a nonmalignant 
     disease (Levels I through V) from the Fund may assert a claim 
     for a subsequent or progressive disease under this 
     subsection, unless the disease 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 
     previous claim against the Fund was disposed.
       (C) Mesothelioma claim.--An individual who received an 
     award for a nonmalignant or malignant disease (except 
     mesothelioma) (Levels I through VIII) 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 disposed.
       (D) Statute of limitations.--Notwithstanding any other 
     provision of law, a claimant who, on the date of termination 
     under subsection (g), had a claim filed with the Fund that 
     was unresolved or was eligible to file a claim with the Fund 
     under section 113(b) may file a civil action in accordance 
     with this section not less than 2 years after the date of 
     termination under subsection (g).
                                 ______
                                 
  SA 2880. Mr. MARTINEZ (for himself, Mr. Allen, Mr. Roberts, and Mr. 
Burr) submitted an amendment intended to be proposed to amendment SA 
2746 proposed by Mr. Frist (for Mr. Specter (for himself and Mr. 
Leahy)) to the bill S. 852, to create a fair and efficient system to 
resolve claims of victims for bodily injury caused by asbestos 
exposure, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 155, line 17, strike all through page 115, line 8, 
     and insert the following:
       (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 previously reported as revenues 
     or that would have been reported as revenues, and determined 
     in accordance with generally accepted accounting principles, 
     for the most recent fiscal year ending on or before December 
     31, 2002.
                                 ______
                                 
  SA 2881. Mr. BURNS (for himself and Mr. Baucus) submitted an 
amendment intended to be proposed to amendment SA 2746 proposed by Mr. 
Frist (for Mr. Specter (for himself and Mr. Leahy)) to the bill S. 852, 
to create a fair and efficient system to resolve claims of victims for 
bodily injury caused by asbestos exposure, and for other purposes; 
which was ordered to lie on the table; as follows:

       On page 70, line 9, strike ``TLC or FVC'' and insert ``TLC, 
     FVC, or DLCO''.
                                 ______
                                 
  SA 2882. Mr. SPECTER (for himself, Mr. Lieberman, and Mr. Dodd) 
submitted an amendment intended to be proposed to amendment SA 2746 
proposed by Mr. Frist (for Mr. Specter (for himself and Mr. Leahy)) to 
the bill S. 852, to create a fair and efficient system to resolve 
claims of victims for bodily injury caused by asbestos exposure, and 
for other purposes; which was ordered to lie on the table; as follows:

       On page 329, line 4 , insert ``, including a claim 
     described under paragraph (2),'' after ``claim''.
                                 ______
                                 
  SA 2883. Mr. SPECTER (for himself, Mr. Lieberman, and Mr. Dodd) 
submitted an amendment intended to be proposed to amendment SA 2746 
proposed by Mr. Frist (for Mr. Specter (for himself and Mr. Leahy)) to 
the bill S. 852, to create a fair and efficient system to resolve 
claims of victims for bodily injury caused by asbestos exposure, and 
for other purposes; which was ordered to lie on the table; as follows:

       On page 212, line 21, strike all through page 214, line 22, 
     and insert the following:
       (B) Procedures for determining insurer payments.--
       (i) Amount of 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 shall be uniform for all 
     insurer participants.
       (ii) Reserve study required.--The Commission shall conduct 
     a reserve study (the

[[Page S1317]]

     ``Reserve Study'') to determine the appropriate reserve 
     allocation of each insurer participant and may request 
     information from each insurer participant, defendant 
     participant, the Securities and Exchange Commission or any 
     State regulatory agency for the purpose of conducting the 
     Reserve Study. The Reserve Study shall calculate each 
     insurer's exposure to current and future asbestos claims in 
     the asbestos litigation environment as it existed prior to 
     enactment. Such calculation shall be derived from the 
     following elements:

       (I) an estimation of each and every defendant participant's 
     current and future exposure to expense and loss costs in the 
     asbestos litigation environment as it existed prior to 
     enactment (``Ultimate Expense and Loss'');
       (II) applying a uniform set of assumptions regarding the 
     application of insurance and reinsurance to Ultimate Expense 
     and Loss, an analysis of each insurer participant's 
     unresolved or unexhausted insurance or reinsurance coverage 
     applicable to such Ultimate Expense and Loss for each 
     defendant participant;
       (III) a project of each insurer's exposure to claims by 
     entities that had not yet become defendants as of the date of 
     enactment, but might reasonably have been anticipated to 
     become defendants in the future if the asbestos litigation 
     environment as it existed prior to enactment had continued. 
     Not later than 60 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 conducting the Reserve Study and allocating 
     payments among insurer participants on the basis of the 
     Reserve Study. Such methodology shall be consistent with the 
     provisions of this paragraph.

       (iii) Permitted extrapolation of ultimate expense and loss 
     for peripheral defendant participants.--The Commission shall 
     be given the discretion to establish an appropriate 
     methodology to extrapolate Ultimate Expense and Loss for Tier 
     VI defendant participants for the purposes of the Reserve 
     Study. Considerations for such methodology shall include, but 
     not be limited to, the nature of that Tier VI defendant 
     participant's asbestos liability, the number of pending and 
     historic asbestos claims against the Tier VI defendant 
     participant and the jurisdictions in which such Tier VI 
     defendant participant had been sued for asbestos liability.
       (iv) Rule of construction.--Nothing in this subparagraph 
     shall undermine the initial payment requirement in section 
     212(e)(1).
                                 ______
                                 
  SA 2884. Mr. SPECTER submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 70, line 23, strike all through page 73, line 2, 
     and insert the following:
       (b) Statute of Limitations.--
       (1) In general.--If a claim is not filed with the Office 
     within the limitations period specified in this subsection 
     for that category of claim, such claim shall be extinguished, 
     and any recovery thereon shall be prohibited.
       (2) Initial claims.--An initial claim for an award under 
     this Act shall be filed within 5 years after the date on 
     which the claimant first received a medical diagnosis and 
     medical test results sufficient to satisfy the criteria for 
     the disease level for which the claimant is seeking 
     compensation.
       (3) Claims for additional awards.--
       (A) Nonmalignant diseases.--If a claimant has previously 
     filed a timely initial claim for compensation for any 
     nonmalignant disease level, there shall be no limitations 
     period applicable to the filing of claims by the claimant for 
     additional awards for higher disease levels based on the 
     progression of the nonmalignant disease.
       (B) Malignant diseases.--Regardless of whether the claimant 
     has previously filed a claim for compensation for any other 
     disease level, a claim for compensation for a malignant 
     disease level shall be filed within 5 years after the 
     claimant first obtained a medical diagnosis and medical test 
     results sufficient to satisfy the criteria for the malignant 
     disease level for which the claimant is seeking compensation.
       (4) Effect on pending claims.--
       (A) In general.--Subject to subparagraph (C), if an 
     asbestos claim that was timely filed within ten years prior 
     to the date of enactment is pending as of the date of 
     enactment and is preempted under section 403(e), a claim 
     under this Act for the same disease or condition may be filed 
     with the Office under this section within 5 years after such 
     date of enactment.
       (B) Special rule.--For purposes of this paragraph, a claim 
     shall not be treated as pending with a trust established 
     under title 11, United States.
                                 ______
                                 
  SA 2885. Mr. SPECTER submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 306, line 20, strike all after the period through 
     page 307, line 10, and insert ``In the event that collateral 
     source compensation exceeds the amount that the claimant 
     would be paid (excluding any adjustments under section 131(b) 
     (3) and (4) of the Act) for such condition under the Act most 
     similar to the claimant's claim with the trust, such trust 
     shall not make any payment to the claimant.''.
                                 ______
                                 
  SA 2886. Mr. SPECTER submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 262, line 20, strike all through page 270, line 20, 
     and insert the following:
       (j) Transactions.--
       (1) Notice of transaction.--Any participant that has 
     engaged in any transaction or series of transactions under 
     which a significant portion of such participant's assets, 
     properties or business was, directly or indirectly, 
     transferred by any means (including, without limitation, by 
     sale, dividend, contribution to a subsidiary or split-off) to 
     1 or more persons other than the participant shall provide 
     written notice to the Administrator of such transaction (or 
     series of transactions).
       (2) Timing of notice and related actions.--
       (A) In general.--Any notice that a participant is required 
     to give under paragraph (1) shall be given not later than 30 
     days after the date of consummation of the transaction or the 
     first transaction to occur in a proposed series of 
     transactions.
       (B) Other notifications.--
       (i) In general.--Not later than the date in any year by 
     which a participant is required to make its contribution to 
     the Fund, the participant shall deliver to the Administrator 
     a written certification stating that--

       (I) the participant has complied during the period since 
     the last such certification or the date of enactment of this 
     Act with the notice requirements set forth in this 
     subsection; or
       (II) the participant was not required to provide any notice 
     under this subsection during such period.

       (ii) Summary.--The Administrator shall include in the 
     annual report required to be submitted to Congress under 
     section 405 a summary of all such notices (after removing all 
     confidential identifying information) received during the 
     most recent fiscal year.
       (C) Notice completion.--The Administrator shall not 
     consider any notice given under paragraph (1) as given until 
     such time as the Administrator receives substantially all the 
     information required by this subsection.
       (3) Contents of notice.--
       (A) In general.--The Administrator shall determine by rule 
     or regulation the information to be included in the notice 
     required under this subsection, which shall include such 
     information as may be necessary to enable the Administrator 
     to determine whether--
       (i) the person or persons to whom the assets, properties or 
     business were transferred in the transaction (or series of 
     transactions) should be considered to be the successor in 
     interest of the participant for purposes of this Act; or
       (ii) the transaction (or series of transactions) is subject 
     to avoidance by a trustee under section 544(b) or 548 of 
     title 11, United States Code, as if, but whether or not, the 
     participant is subject to a case under title 11, United 
     States Code.
       (B) Statements.--The notice shall also include--
       (i) a statement by the participant as to whether it 
     believes any person has become a successor in interest to the 
     participant for purposes of this Act and, if so, the identity 
     of that person; and
       (ii) a statement by the participant as to whether that 
     person has acknowledged that it has become a successor in 
     interest for purposes of this Act.
       (4) Definition.--In this subsection, the term ``significant 
     portion of the assets, properties or business of a 
     participant'' means assets (including, without limitation, 
     tangible or intangible assets, securities and cash), 
     properties or business of such participant (or its affiliated 
     group, to the extent that the participant has elected to be 
     part of an affiliated group under section 204(f)) that, 
     together with any other asset, property or business 
     transferred by such participant in any of the previous 
     completed 5 fiscal years of such participant (or, as 
     appropriate, its affiliated group), and as determined in 
     accordance with United States' generally accepted accounting 
     principles as in effect from time to time--
       (A) generated at least 40 percent of the revenues of such 
     participant (or its affiliated group);
       (B) constituted at least 40 percent of the assets of such 
     participant (or its affiliated group);
       (C) generated at least 40 percent of the operating cash 
     flows of such participant (or its affiliated group); or
       (D) generated at least 40 percent of the net income or loss 
     of such participant (or its affiliated group),


[[Page S1318]]


     as measured during any of such 5 previous fiscal years.
       (5) Right of action.--
       (A) In general.--Notwithstanding section 221(f), if the 
     Administrator or any participant believes that a participant 
     has engaged, directly or indirectly, in, or is the subject 
     of, a transaction (or series of transactions)--
       (i) involving a person or persons who, as a result of such 
     transaction (or series of transactions), may have or may 
     become the successor in interest or successors in interest of 
     such participant, where the status as a successor in interest 
     has not been stated and acknowledged by the participant and 
     such person; or
       (ii) that may be subject to avoidance by a trustee under 
     section 544(b) or 548 of title 11, United States Code, as if, 
     but whether or not, the participant is a subject to a case 
     under title 11, United States Code,

     then the Administrator or such participant may, as a deemed 
     creditor under applicable law, bring a civil action in an 
     appropriate forum against the participant or any other person 
     who is either a party to the transaction (or series of 
     transactions) or the recipient of any asset, property or 
     business of the participant.
       (B) Relief allowed.--In any action commenced under this 
     subsection, the Administrator or a participant, as 
     applicable, may seek--
       (i) with respect to a transaction (or series of 
     transactions) referenced in clause (i) of subparagraph (A), a 
     declaratory judgment regarding whether such person has become 
     the successor in interest of such participant; or
       (ii) with respect to a transaction (or series of 
     transactions) referenced in clause (ii) of subparagraph (A) a 
     temporary restraining order or a preliminary or permanent 
     injunction such other relief regarding such transaction (or 
     series of transactions) as the court determines to be 
     necessary to ensure that performance of a participant's 
     payment obligations under this Act is not materially impaired 
     by reason of such transaction (or series of transactions).
       (C) Applicability.--If the Administrator or a participant 
     wishes to challenge a statement made by a participant that a 
     person has not become a successor in interest for purposes of 
     this Act, then this paragraph shall be the exclusive means by 
     which the determination of whether such person became a 
     successor in interest of the participant shall be made. This 
     paragraph shall not preempt any other rights of any person 
     under applicable Federal or State law.
       (D) Venue.--Any action under this paragraph shall be 
     exclusively brought in any appropriate United States district 
     court or, to the extent necessary to obtain complete relief, 
     any other appropriate forum outside of the United States.
       (6) Rules and regulations.--The Administrator may 
     promulgate regulations to effectuate the intent of this 
     subsection, including regulations relating to the form, 
     timing, and content of notices.
                                 ______
                                 
  SA 2887. Mr. SPECTER submitted an amendment intended to be proposed 
to amendment SA 2746 proposed by Mr. Frist (for Mr. Specter (for 
himself and Mr. Leahy)) to the bill S. 852, to create a fair and 
efficient system to resolve claims of victims for bodily injury caused 
by asbestos exposure, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 302, strike line 9 and all that follows through 
     page 304, line 17, and insert the following:
       ``(aa) provides to the trust a copy of a binding election 
     submitted to Administrator waiving the right to secure 
     compensation under section 106(f)(2) of the Fairness in 
     Asbestos Injury Resolution Act of 2006, unless the claimant 
     is permitted under section 106(f)(2)(B) of such Act to seek a 
     judgment or order for monetary damages from a Federal or 
     State court;
       ``(bb) meets the requirements for compensation under the 
     distribution plan for the trust as of the date of enactment 
     of the Fairness in Asbestos Injury Resolution Act of 2006;
       ``(cc) for any condition satisfies the medical criteria 
     under the distribution plan for the trust that is most nearly 
     equivalent to the medical criteria described in paragraph 
     (2), (3), (4), (5), (7), (8), or (9) of section 121(d) of the 
     Fairness in Asbestos Injury Resolution Act of 2006, except 
     that, notwithstanding any provision of the distribution plan 
     of the trust to the contrary, the trust shall not accept the 
     results of a DLCO test (as such test is defined in section 
     121(a) of the Fairness in Asbestos Injury Resolution Act of 
     2006) for the purpose of demonstrating respiratory 
     impairment; and
       ``(dd) for any of the cancers listed in section 121(d)(6) 
     of the Fairness in Asbestos Injury Resolution Act of 2006 
     does not seek, and the trust does not pay, any compensation 
     until such time as the Institute of Medicine finds that there 
     is a causal relationship between asbestos exposure and such 
     cancer, in which case such claims may be paid if such claims 
     otherwise qualify for compensation under the distribution 
     plan of the trust as of the date of enactment of the Fairness 
     in Asbestos Injury Resolution Act of 2006.
                                 ______
                                 
  SA 2888. Mr. ISAKSON submitted an amendment intended to be proposed 
by him to the bill S. 852, to create a fair and efficient system to 
resolve claims of victims for bodily injury caused by asbestos 
exposure, and for other purposes; which was ordered to lie on the 
table; as follows:

       In lieu of the matter, insert the following:

     SEC. 503. TRANSACTIONS.

       (a) Notice of Transactions.--Notwithstanding any other 
     provision of this Act, any participant that has engaged in 
     any transaction or a series of transactions under which a 
     significant portion of such participant's assets, properties, 
     or business was, directly or indirectly, transferred by any 
     means (including by sale, dividend, contribution to a 
     subsidiary, or split-off) to 1 or more persons other than the 
     participant shall provide written notice to the Administrator 
     of such transaction (or series of transactions).
       (b) Timing of Notice and Related Actions.--
       (1) In general.--Any notice that a participant is required 
     to give under subsection (a) shall be given not later than 30 
     days after the date of consummation of the transaction or the 
     first transaction to occur in a proposed series of 
     transactions.
       (2) Other notifications.--
       (A) In general.--Not later than the date in any year on 
     which a participant is required to make its contribution to 
     the Fund, the participant shall deliver to the Administrator 
     a written certification stating that--
       (i) the participant has complied during the period since 
     the last such certification or the date of enactment of this 
     Act with the notice requirements set forth in this section; 
     or
       (ii) the participant was not required to provide any notice 
     under this section during such period.
       (B) Summary.--The Administrator shall include in the annual 
     report required to be submitted to Congress under section 405 
     a summary of all such notices (after removing all 
     confidential identifying information) received during the 
     most recent fiscal year.
       (3) Notice completion.--The Administrator shall not 
     consider any notice given under subsection (a) as given until 
     such time as the Administrator receives substantially all the 
     information required by this section.
       (c) Contents of Notice.--
       (1) In general.--The Administrator shall determine by 
     regulation the information to be included in the notice 
     required under this section, which shall include such 
     information as may be necessary to enable the Administrator 
     to determine whether--
       (A) the person or persons to whom the assets, properties or 
     business were transferred in the transaction (or series of 
     transactions) should be considered to be the successor in 
     interest of the participant for purposes of this Act; or
       (B) the transaction (or series of transactions) is subject 
     to avoidance by a trustee under section 544(b) or 548 of 
     title 11, United States Code, as if, but whether or not, the 
     participant is subject to a case under title 11, United 
     States Code.
       (2) Statements.--The notice shall also include--
       (A) a statement by the participant as to whether the 
     participant believes any person has become a successor in 
     interest to the participant for purposes of this Act and, if 
     so, the identity of that person; and
       (B) a statement by the participant as to whether that 
     person has acknowledged that such person has become a 
     successor in interest for purposes of this Act.
       (d) Definition.--In this section, the term ``significant 
     portion of the assets, properties or business of a 
     participant'' means assets (including tangible or intangible 
     assets, securities, and cash), properties or business of such 
     participant (or its affiliated group, to the extent that the 
     participant has elected to be part of an affiliated group 
     under section 204(f)) that, together with any other asset, 
     property or business transferred by such participant in any 
     of the previous completed 5 fiscal years of such participant 
     (or, as appropriate, its affiliated group), and as determined 
     in accordance with United States generally accepted 
     accounting principles as in effect from time to time--
       (1) generated at least 40 percent of the revenues of such 
     participant (or its affiliated group);
       (2) constituted at least 40 percent of the assets of such 
     participant (or its affiliated group);
       (3) generated at least 40 percent of the operating cash 
     flows of such participant (or its affiliated group); or
       (4) generated at least 40 percent of the net income or loss 
     of such participant (or its affiliated group),

     as measured during any of such 5 previous fiscal years.
       (e) Right of Action.--
       (1) In general.--Notwithstanding section 221(f), if the 
     Administrator or any participant believes that a participant 
     has engaged, directly or indirectly, in, or is the subject 
     of, a transaction (or series of transactions) that--
       (A) involves a person or persons who, as a result of such 
     transaction (or series of transactions), may have or may 
     become the successor in interest or successors in interest of 
     such participant, where the status as a successor in interest 
     has not been stated and acknowledged by the participant and 
     such person; or
       (B) may be subject to avoidance by a trustee under section 
     544(b) or 548 of title 11, United States Code, as if, but 
     whether or not, the participant is a subject to a case under 
     title 11, United States Code,


[[Page S1319]]


     then the Administrator or such participant may, as a deemed 
     creditor under applicable law, bring a civil action in an 
     appropriate forum against the participant or any other person 
     who is either a party to the transaction (or series of 
     transactions) or the recipient of any asset, property or 
     business of the participant.
       (2) Relief allowed.--In any action commenced under this 
     section, the Administrator or a participant, as applicable, 
     may seek--
       (A) with respect to a transaction (or series of 
     transactions) referred to under subparagraph (A) of paragraph 
     (1), a declaratory judgment regarding whether such person has 
     become the successor in interest of such participant; or
       (B) with respect to a transaction (or series of 
     transactions) referred to under subparagraph (B) of paragraph 
     (1)--
       (i) a temporary restraining order or a preliminary or 
     permanent injunction; or
       (ii) such other relief regarding such transaction (or 
     series of transactions) as the court determines to be 
     necessary to ensure that performance of a participant's 
     payment obligations under this Act is not materially impaired 
     by reason of such transaction (or series of transactions).
       (3) Applicability.--If the Administrator or a participant 
     wishes to challenge a statement made by a participant that a 
     person has not become a successor in interest for purposes of 
     this Act, then this subsection shall be the exclusive means 
     by which the determination of whether such person became a 
     successor in interest of the participant shall be made. This 
     subsection shall not preempt any other rights of any person 
     under applicable Federal or State law.
       (4) Venue.--Any action under this subsection shall be 
     exclusively brought in any appropriate United States district 
     court or, to the extent necessary to obtain complete relief, 
     any other appropriate forum outside of the United States.
       (f) Regulations.--The Administrator--
       (1) shall promulgate rules to carry out subsection (c), 
     including regulations relating to the form, timing and 
     content of notices; and
       (2) may promulgate regulations to effectuate the intent of 
     this section.
       (g) Preemption of Section 223(j).--Section 223(j) shall 
     have no force or effect.

                          ____________________