[Congressional Record (Bound Edition), Volume 149 (2003), Part 9]
[Senate]
[Pages 12064-12076]
[From the U.S. Government Publishing Office, www.gpo.gov]




                            ASBESTOS REFORM

  Mr. HATCH. Mr. President, as everybody knows, I have been working for 
months--actually perhaps longer than that--on an asbestos reform bill 
to try to resolve the terrible asbestos problem we have in our society.
  I have indicated various deadlines throughout these months which I 
have set.
  I compliment the business community, the insurance community, the 
union community, and so many other companies that have been involved 
for their willingness to work with us. I think we are about there.
  We have a bill I am going to print in the Record this evening so 
everybody who is interested in this issue can read it and review it 
because I intend to file a formal bill this Thursday. I would like to 
have as many cosponsors as I can get on it because it will be the only 
way we will get this problem solved.
  This draft bill is not a formal bill. But I want it to be printed in 
the Record for all to see. It is a very important draft bill. I hope 
those who are interested will go over it with a fine-toothed comb and 
get with us over the next 2 days, if there are substantive suggestions 
they have. We will be happy to look at those.
  This is basically what I intend to file as a formal bill this next 
Thursday. I hope I will have a number of my colleagues on both sides of 
the floor join with me.
  I ask unanimous consent this draft bill be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Fairness 
     in Asbestos Injury Resolution Act of 2003'' or the ``FAIR Act 
     of 2003''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purpose.
Sec. 3. Definitions.

                  TITLE I--ASBESTOS CLAIMS RESOLUTION

           Subtitle A--United States Court of Asbestos Claims

Sec. 101. Establishment of Asbestos Court.

        Subtitle B--Asbestos Injury Claims Resolution Procedures

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

                      Subtitle C--Medical Criteria

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

                           Subtitle D--Awards

Sec. 131. Amount.
Sec. 132. Medical monitoring.
Sec. 133. Payments.
Sec. 134. Reduction in benefit payments for collateral sources.

                       Subtitle E--En Banc Review

Sec. 141. En banc review.

            TITLE II--ASBESTOS INJURY CLAIMS RESOLUTION FUND

           Subtitle A--Asbestos Defendants Funding Allocation

Sec. 201. Definitions.
Sec. 202. Authority and tiers.
Sec. 203. Subtier assessments.
Sec. 204. Assessment administration.

                Subtitle B--Asbestos Insurers Commission

Sec. 211. Establishment of Asbestos Insurers Commission.
Sec. 212. Duties of Asbestos Insurers Commission.
Sec. 213. Powers of Asbestos Insurers Commission.
Sec. 214. Personnel matters.
Sec. 215. Nonapplication of FOIA and confidentiality of information.
Sec. 216. Termination of Asbestos Insurers Commission.
Sec. 217. Authorization of appropriations.

[[Page 12065]]

        Subtitle C--Office of Asbestos Injury Claims Resolution

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

                       TITLE III--JUDICIAL REVIEW

Sec. 301. Judicial review of decisions of the Asbestos Court.
Sec. 302. Judicial review of final determinations of the Asbestos 
              Insurers Commission.
Sec. 303. Exclusive review.
Sec. 304. Private right of action against reinsurers.

                   TITLE IV--MISCELLANEOUS PROVISIONS

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

     SEC. 2. PURPOSE.

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

     SEC. 3. DEFINITIONS.

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

                  TITLE I--ASBESTOS CLAIMS RESOLUTION

           Subtitle A--United States Court of Asbestos Claims

     SEC. 101. ESTABLISHMENT OF ASBESTOS COURT.

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

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

``Sec.
``201. Establishment of the United States Court of Asbestos Claims.
``202. Magistrates.
``203. Retirement of judges of the United States Court of Asbestos 
              Claims.

     ``Sec. 201. Establishment of the United States Court of 
       Asbestos Claims

       ``(a) Establishment and Appointment of Judges.--
       ``(1) In general.--The President shall appoint, by and with 
     the advice and consent of the Senate, 5 judges, who shall 
     constitute a court of record known as the United States Court 
     of Asbestos Claims.
       ``(2) Article i court.--The Court of Asbestos Claims is 
     declared to be a court established under article I of the 
     Constitution of the United States.
       ``(b) Term; Removal; Compensation.--
       ``(1) Term.--Each judge appointed under subsection (a) 
     shall serve for a term of 15 years, except that judges 
     initially appointed shall serve for staggered terms as the 
     President shall determine appropriate to assure continuity.
       ``(2) Removal.--Judges may be removed by the President only 
     for good cause.
       ``(3) Compensation.--Each judge shall receive a salary at 
     the rate of pay, and in the same manner, as judges of the 
     district courts of the United States.
       ``(c) Chief Judge.--
       ``(1) In general.--The President shall designate 1 of the 
     judges appointed under subsection (b)(1), who is less than 70 
     years of age, to serve as chief judge.
       ``(2) Term.--The chief judge may continue to serve as such 
     until--
       ``(A) he or she reaches the age of 70 years;
       ``(B) another judge is designated as chief judge by the 
     President; or
       ``(C) the expiration of his or her term under subsection 
     (b)(1).
       ``(3) Continuity of service.--Upon the designation by the 
     President of another judge to serve as chief judge, the 
     former chief judge may continue to serve as a judge of the 
     Court of Asbestos Claims for the balance of the term to which 
     he or she was appointed.
       ``(4) Powers of chief judge.--The chief judge is authorized 
     to--
       ``(A) prescribe rules and procedures for hearings and 
     appeals of the Court of Asbestos Claims and its magistrates;
       ``(B) appoint magistrates;
       ``(C) appoint or contract for the services of such 
     personnel as may be necessary and appropriate to carry out 
     the responsibilities of the Court of Asbestos Claims; and
       ``(D) make such expenditures as may be necessary and 
     appropriate in the administration of the responsibilities of 
     the Court of Asbestos Claims and the chief judge under this 
     chapter and the Fairness in Asbestos Injury Resolution Act of 
     2003.
       ``(d) Time and Places of Holding Court.--
       ``(1) In general.--The principal office of the Court of 
     Asbestos Claims shall be in the District of Columbia, but the 
     Court of Asbestos Claims may hold court at such times and in 
     such places as the chief judge may prescribe by rule.

[[Page 12066]]

       ``(2) Limitation.--The times and places of the sessions of 
     the Court of Asbestos Claims shall be prescribed with a view 
     to securing reasonable opportunity to citizens to appear 
     before the Court of Asbestos Claims.
       ``(e) Official Duty Station; Residence.--
       ``(1) Duty station.--The official duty station of each 
     judge of the Court of Asbestos Claims is the District of 
     Columbia.
       ``(2) Residence.--After appointment and while in active 
     service, each judge of the Court of Asbestos Claims shall 
     reside within 50 miles of the District of Columbia.

     ``Sec. 202. Magistrates

       ``(a) Appointment.--The chief judge shall appoint such 
     magistrates as necessary to facilitate the expeditious 
     processing of claims.
       ``(b) Compensation.--The compensation of magistrates shall 
     be determined by the chief judge, but shall not exceed the 
     annual rate of basic pay of level V of the Executive 
     Schedule, as prescribed by section 5316 of title 5.
       ``(c) Retirement.--For purposes of Federal laws relating to 
     retirement, including chapters 83 and 84 of title 5, 
     magistrates appointed under this section shall be deemed to 
     be appointed under section 631 of this title.
       ``(d) Regulations.--Except as provided under subsection 
     (c), chapter 43 shall not apply to magistrates appointed 
     under this chapter, except the chief judge may prescribe 
     rules similar to the provisions of chapter 43 to apply to 
     magistrates.

     ``Sec. 203. Retirement of judges of the United States Court 
       of Asbestos Claims

       ``(a) In General.--For purposes of Federal laws relating to 
     retirement, judges of the Court of Asbestos Claims shall be 
     treated in the same manner and to the same extent as judges 
     of the Court of Federal Claims.
       ``(b) Regulations.--In carrying out this section--
       ``(1) the Director of the Administrative Office of the 
     United States Courts shall promulgate regulations to apply 
     provisions similar to section 178 of this title (including 
     the establishment of a Court of Asbestos Claims Judges 
     Retirement Fund) to judges of the Court of Asbestos Claims; 
     and
       ``(2) the Director of the Office of Personnel Management 
     shall promulgate regulations to apply chapters 83 and 84 of 
     title 5 to judges of the Court of Asbestos Claims.''.
       (b) Technical and Conforming Amendment.--The table of 
     chapters for part I of title 28, United States Code, is 
     amended by striking the item relating to chapter 9, and 
     inserting after the item relating to chapter 7 the following:

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

        Subtitle B--Asbestos Injury Claims Resolution Procedures

     SEC. 111. FILING OF CLAIMS.

       (a) Who May Submit.--
       (1) General rule.--Any individual who has suffered from an 
     eligible disease or condition that is believed to meet the 
     requirements established under subtitle C (or the spouse, 
     parent, child, or other relative of such individual in a 
     representative capacity, or the executor of the estate of 
     such individual) may file a claim with the Asbestos Court for 
     compensation with respect to such injury.
       (2) Rules.--The Asbestos Court may issue procedural rules 
     to specify individuals who may file an asbestos claim as a 
     representative of another individual.
       (3) Limitation.--An asbestos claim may not be filed by any 
     person seeking contribution or indemnity.
       (b) Required Information.--To be valid, an asbestos claim 
     filed under subsection (a) shall be notarized and include--
       (1) the name, social security number, gender, date of 
     birth, and, if applicable, date of death of the claimant;
       (2) information relating to the identity of dependents and 
     beneficiaries of the claimant;
       (3) a detailed description of the work history of the 
     claimant, including social security records or a signed 
     release permitting access to such records;
       (4) a detailed description of the asbestos exposure of the 
     claimant, including information on the identity of any 
     product or manufacturer, site, or location of exposure, plant 
     name, and duration and intensity of exposure;
       (5) a detailed description of the tobacco product use 
     history of the claimant, including frequency and duration;
       (6) an identification and description of the asbestos-
     related diseases of the claimant, including a written report 
     by the claimant's physician with medical diagnoses and test 
     results necessary to make a determination of medical 
     eligibility that complies with the applicable requirements of 
     this subtitle and subtitle C;
       (7) a description of any prior or pending civil action or 
     other claim brought by the claimant for asbestos-related 
     injury, including an identification of any recovery of 
     compensation or damages through settlement, judgment, or 
     otherwise; and
       (8) any other information that is required to be included 
     under procedural rules issued by the Court.
       (c) Statute of Limitations.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), if an individual fails to file an asbestos claim with 
     the Asbestos Court under this section within 2 years after 
     the date on which the individual first--
       (A) received a medical diagnosis of an eligible disease or 
     condition as provided for under this subtitle and subtitle C; 
     or
       (B) discovered facts that would have led a reasonable 
     person to obtain a medical diagnosis with respect to an 
     eligible disease or condition,

     any claim relating to that injury, and any other asbestos 
     claim related to that injury, shall be extinguished, and any 
     recovery thereon shall be prohibited.
       (2) Effect on pending claims.--If an asbestos claimant has 
     any claim for an asbestos-related injury that is pending in a 
     Federal or State court or with a trust established under 
     title 11, United States Code, on the date of enactment of 
     this Act, such claimant shall file an asbestos claim under 
     this section within 2 years after such date of enactment or 
     be barred from receiving any compensation under this title.
       (3) Effect of multiple injuries.--An asbestos claimant who 
     receives compensation under this title for an eligible 
     disease or condition, and who subsequently develops another 
     such injury, shall be eligible for additional compensation 
     under this title (subject to appropriate setoffs for such 
     prior recovery of compensation under this title and from any 
     other collateral source) and the statute of limitations under 
     paragraph (1) shall not begin to run with respect to such 
     subsequent injury until such claimant obtains a medical 
     diagnosis of such other injury or discovers facts that would 
     have led a reasonable person to obtain such a diagnosis.
       (4) Rule of construction.--Paragraph (2) shall be 
     interpreted as a statute of limitations and be construed to 
     the benefit of the Fund and of any person who might otherwise 
     have been made subject to an asbestos claim to which such 
     paragraph is applied.

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

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

     SEC. 113. ESSENTIAL ELEMENTS OF ELIGIBLE ASBESTOS CLAIM.

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

     SEC. 114. ELIGIBILITY DETERMINATIONS AND CLAIM AWARDS.

       (a) Claims Examiners.--
       (1) In general.--The Asbestos Court shall appoint, or 
     contract for the services of, qualified individuals to assist 
     magistrates by conducting eligibility reviews of asbestos 
     claims filed with the Court.
       (2) Criteria.--The Asbestos Court shall establish criteria 
     with respect to the qualifications of individuals who are 
     eligible to serve as claims examiners and, in developing such 
     criteria, shall consult with such experts as the Court 
     determines appropriate.
       (b) Referral of Asbestos Claim.--Not later than 20 days 
     after the filing of an asbestos claim with the Asbestos 
     Court, the Court shall refer such claim to a magistrate.
       (c) Initial Review.--
       (1) In general.--Under the direction of a magistrate, a 
     claims examiner shall make an initial review of an asbestos 
     claim to determine whether all required information has been 
     submitted by the claimant.
       (2) Notice of incomplete claim.--If the claims examiner 
     determines that all required information has not been 
     submitted, the examiner--
       (A) shall notify the claimant of such determination and 
     require the submission of additional information necessary 
     for a determination of eligibility;
       (B) may compel the submission of any additional 
     information;
       (C) may request that the claimant undergo additional 
     medical examinations and tests if information from such 
     examinations or tests is necessary to enable the examiner to 
     make a determination of medical eligibility; and
       (D) may require any releases necessary to enable the 
     examiner to obtain medical or other information relevant to 
     the determination of eligibility.
       (d) Expeditious Determinations.--The Asbestos Court shall 
     prescribe rules to expedite claims for asbestos claimants 
     with exigent circumstances.
       (e) Audit and Personnel Review Procedures.--The Asbestos 
     Court shall establish audit and personnel review procedures 
     for evaluating the accuracy of eligibility recommendations of 
     magistrates.
       (f) Eligibility Determinations.--
       (1) In general.--Not later than 60 days after the receipt 
     by a magistrate of all required information and requested 
     medical advice with respect to an asbestos claim, the 
     magistrate shall transmit a recommendation of the 
     compensation to which the claimant is

[[Page 12067]]

     entitled and findings of fact to a judge of the Asbestos 
     Court.
       (2) Admissibility of findings of fact.--A determination 
     under paragraph (1) shall include relevant findings of fact 
     and shall be admissible as evidence in any judicial review.
       (g) Decision of Judge.--
       (1) In general.--Not later than 30 days after receipt of a 
     recommendation of a magistrate, a judge of the Asbestos Court 
     shall make a final decision of any compensation to which the 
     claimant is entitled.
       (2) Waiver of judicial review.--The final decision under 
     paragraph (1) shall include an acceptance form by which the 
     claimant may waive the right to judicial review and expedite 
     payment of compensation from the Fund.
       (h) Awarding of Compensation.--
       (1) In general.--If a judge of the Asbestos Court 
     determines that an asbestos claimant is entitled to 
     compensation, the Court shall notify the Administrator to 
     award the claimant compensation from the Fund in the amount 
     of the judge's decision.
       (2) Claim extinguished.--The acceptance of a payment under 
     this Act shall extinguish all claims related to such payment.

     SEC. 115. MEDICAL EVIDENCE AUDITING PROCEDURES.

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

     SEC. 116. CLAIMANT ASSISTANCE PROGRAM.

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

                      Subtitle C--Medical Criteria

     SEC. 121. ESSENTIAL ELEMENTS OF ELIGIBLE ASBESTOS CLAIM.

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

     SEC. 122. DIAGNOSTIC CRITERIA REQUIREMENTS.

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

     SEC. 123. LATENCY CRITERIA REQUIREMENTS.

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

     SEC. 124. MEDICAL CRITERIA REQUIREMENTS.

       (a) Definitions.--In this section, the following 
     definitions shall apply:
       (1) Bilateral asbestos-related nonmalignant disease.--The 
     term ``bilateral asbestos-related nonmalignant disease'' 
     means a diagnosis of bilateral asbestos-related nonmalignant 
     disease based on--
       (A) an x-ray reading of \1/0\ or higher on the ILO scale; 
     or
       (B) an x-ray showing bilateral pleural plaques or pleural 
     thickening, bilateral interstitial fibrosis, or bilateral 
     interstitial markings.
       (2) Bilateral pleural disease of b2.--The term ``bilateral 
     pleural disease of B2'' means a chest wall pleural thickening 
     or plaque with a maximum width of at least 5 millimeters and 
     a total length of at least \1/4\ of the projection of the 
     lateral chest wall.
       (3) FEV1.--The term ``FEV1'' means forced expiratory volume 
     (1 second), which is the maximal volume of air expelled in 1 
     second during performance of the spirometric test for forced 
     vital capacity.
       (4) FVC.--The term ``FVC'' means forced vital capacity, 
     which is the maximal volume of air expired with a maximally 
     forced effort from a position of maximal inspiration.
       (5) ILO grade.--The term ``ILO grade'' means the 
     radiological ratings for the presence of lung or pleural 
     changes as determined from a chest x-ray, all as established 
     from time to time by the International Labor Organization.
       (6) Pathological evidence of asbestosis.--The term 
     ``pathological evidence of asbestosis'' means proof of 
     asbestosis based on the pathological grading system for 
     asbestosis described in the Special Issue of the Archives of 
     Pathology and Laboratory Medicine, ``Asbestos-associated 
     Diseases'', Vol. 106, No. 11, App. 3 (October 8, 1982).
       (7) Pulmonary function testing.--The term ``pulmonary 
     function testing'' means spirometry testing that is in 
     compliance with the quality criteria established from time to 
     time by the American Thoracic Society and is performed on 
     equipment which is in compliance with the standards of the 
     American Thoracic Society for technical quality and 
     calibration.
       (8) Significant occupational exposure.--The term 
     ``significant occupational exposure'' means employment for a 
     cumulative

[[Page 12068]]

     period of at least 5 years, in an industry and an occupation 
     in which the claimant--
       (A) handled raw asbestos fibers on a regular basis;
       (B) fabricated asbestos-containing products so that the 
     claimant in the fabrication process was exposed on a regular 
     basis to raw asbestos fibers;
       (C) altered, repaired, or otherwise worked with an 
     asbestos-containing product such that the claimant was 
     exposed on a regular basis to asbestos fibers; or
       (D) was employed in an industry and occupation such that 
     the claimant worked on a regular basis in close proximity to 
     workers engaged in the activities described under 
     subparagraph (A), (B), or (C).
       (9) TLC.--The term ``TLC'' means total lung capacity, which 
     is the volume of air in the lung after maximal inspiration.
       (b) Requirement.--To be eligible for compensation or 
     medical monitoring reimbursement under this title, a claimant 
     shall establish that the claimant meets the medical criteria 
     for 1 of the following categories:
       (1) For Level I: Asymptomatic Exposure, the claimant shall 
     provide--
       (A) a diagnosis that meets the requirements of section 122 
     of a bilateral asbestos-related nonmalignant disease or an 
     asbestos-related malignancy; and
       (B) meaningful and credible evidence of--
       (i) 6 months of occupational exposure to asbestos before 
     December 31, 1982; and
       (ii) 5 years cumulative occupational exposure to asbestos.
       (2) For Level II: Asbestosis/Pleural Disease A, the 
     claimant shall provide--
       (A) a diagnosis that meets the requirements of section 122 
     of asbestosis by chest x-rays for which a B-reader report is 
     furnished showing small irregular opacities of ILO Grade \1/
     0\ or greater, or showing bilateral pleural disease of B2 or 
     greater, or by pathological evidence of asbestosis; and
       (B) meaningful and credible evidence of--
       (i) 6 months of occupational exposure to asbestos before 
     December 31, 1982; and
       (ii) significant occupational exposure.
       (3) For Level III: Asbestosis/Pleural Disease B, the 
     claimant shall provide--
       (A) a diagnosis that meets the requirements of section 122 
     of asbestosis by chest x-rays for which a B-reader report is 
     furnished showing small irregular opacities of ILO Grade \1/
     0\ or greater, or showing bilateral pleural disease of B2 or 
     greater, or by pathological evidence of asbestosis;
       (B) pulmonary function testing that shows--
       (i) TLC less than 80 percent of predicted; or
       (ii) FVC less than 80 percent of predicted, and a FEV1/FVC 
     ratio of not less than 65 percent; and
       (C) meaningful and credible evidence of--
       (i) 6 months of occupational exposure to asbestos before 
     December 31, 1982; and
       (ii) significant occupational exposure.
       (4) For Level IV: Severe Asbestosis, the claimant shall 
     provide--
       (A) a diagnosis that meets the requirements of section 122 
     of asbestosis by chest x-rays for which a B-reader report is 
     furnished showing small irregular opacities of ILO Grade \2/
     1\ or greater, or by pathological evidence of asbestosis;
       (B) pulmonary function testing that shows--
       (i) TLC less than 65 percent of predicted; or
       (ii) FVC less than 65 percent of predicted, and a FEV1/FVC 
     ratio greater than 65 percent; and
       (C) meaningful and credible evidence of--
       (i) 6 months of occupational exposure to asbestos before 
     December 31, 1982; and
       (ii) significant occupational exposure.
       (5) For Level V: Other Cancer, the claimant shall provide--
       (A) a diagnosis that meets the requirements of section 122 
     of a primary laryngeal, esophageal, pharyngeal, or stomach 
     cancer;
       (B) evidence of an underlying bilateral asbestos-related 
     nonmalignant disease; and
       (C) meaningful and credible evidence of--
       (i) 6 months of occupational exposure to asbestos before 
     December 31, 1982; and
       (ii) significant occupational exposure.
       (6) For Level VI: Lung Cancer One, the claimant shall 
     provide--
       (A) a diagnosis that meets the requirements of section 122 
     of a primary lung cancer; and
       (B) meaningful and credible evidence of 6 months of 
     occupational exposure to asbestos before December 31, 1982.
       (7) For Level VII: Lung Cancer Two, the claimant shall 
     provide--
       (A) a diagnosis that meets the requirements of section 122 
     of a primary lung cancer;
       (B) evidence of an underlying bilateral asbestos-related 
     nonmalignant disease;
       (C) meaningful and credible evidence of--
       (i) 6 months of occupational exposure to asbestos before 
     December 31, 1982; and
       (ii) significant occupational exposure; and
       (D) supporting medical documentation and certification by 
     or on behalf of the claimant establishing asbestos exposure 
     as a contributing factor causing the relevant lung cancer.
       (8) For Level VIII: Mesothelioma, the claimant shall 
     provide--
       (A) a diagnosis that meets the requirements of section 122 
     of mesothelioma; and
       (B) meaningful and credible evidence of exposure to 
     asbestos.

     SEC. 125. EXPOSURE CRITERIA REQUIREMENTS.

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

                           Subtitle D--Awards

     SEC. 131. AMOUNT.

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

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

       (2) Medical monitoring.--An asbestos claimant with 
     asymptomatic exposure or asbestosis/pleural disease A, based 
     on the criteria under section 124(b)(1), shall only be 
     eligible for medical monitoring reimbursement.

     SEC. 132. MEDICAL MONITORING.

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

     SEC. 133. PAYMENTS.

       (a) Structured Payments.--
       (1) In general.--An asbestos claimant who is entitled to 
     compensation shall receive such compensation through 
     structured payments from the Fund, made over a period of not 
     less than 3 years.
       (2) Accelerated payments.--The Administrator shall develop 
     guidelines to provide for accelerated payments to asbestos 
     claimants who are mesothelioma victims and who are alive on 
     the date on which the administrator receives notice of the 
     eligibility of the claimant. Such payments shall be credited 
     against the first regular payment under the structured 
     payment plan for the claimant.
       (3) Expedited payments.--The Administrator shall develop 
     guidelines to provide for expedited payments to asbestos 
     claimants in cases of exigent circumstances or extreme 
     hardship caused by asbestos-related injury.
       (4) Annuity.--An asbestos claimant may elect to receive any 
     payments to which they

[[Page 12069]]

     are entitled under this title in the form of an annuity.
       (b) Limitation on Transferability.--An asbestos claim shall 
     not be assignable or otherwise transferable under this Act.
       (c) Creditors.--An award of compensation under this title 
     shall be exempt from all claims of creditors and from levy, 
     execution, and attachment or other remedy for recovery or 
     collection of a debt, and such exemption may not be waived.
       (d) Treatment for Internal Revenue Purposes.--All 
     compensation received under this subtitle shall be deemed to 
     be compensation for personal physical injuries or physical 
     sickness under section 104 of the Internal Revenue Code of 
     1986.
       (e) Medicare as Secondary Payer.--No award of compensation 
     under this title shall be deemed a payment for purposes of 
     section 1862 of the Social Security Act (42 U.S.C. 1395y).

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

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

                       Subtitle E--En Banc Review

     SEC. 141. EN BANC REVIEW.

       (a) In General.--
       (1) En banc panels.--The chief judge of the Asbestos Court 
     shall--
       (A) establish en banc panels to carry out this subtitle; 
     and
       (B) assign 3 judges of the Asbestos Court to each en banc 
     panel.
       (2) Filing of appeal.--Not later than 30 days after 
     receiving notice of the decision of a judge under section 
     114, a claimant may file an appeal for review with an en banc 
     panel of the Asbestos Court.
       (b) De Novo Review.--An Asbestos Court panel shall provide 
     a de novo review of the magistrate's determination and the 
     judge's decision.
       (c) Representation of the Administrator.--The Administrator 
     may appoint counsel to represent the interests of the Fund 
     and the Administrator in all proceedings before a panel, 
     including oral arguments and the submission of briefs.
       (d) Federal Rules of Appellate Procedure.--An Asbestos 
     Court panel shall apply the Federal Rules of Appellate 
     Procedures to all proceedings before the panel.
       (e) Decision of Panel.--An Asbestos Court panel shall enter 
     a final decision on an appeal on the earlier date occurring--
       (1) not later than 30 days after the date of the conclusion 
     of oral arguments; or
       (2) not later than 60 days after an appeal is filed under 
     this section.

            TITLE II--ASBESTOS INJURY CLAIMS RESOLUTION FUND

           Subtitle A--Asbestos Defendants Funding Allocation

     SEC. 201. DEFINITIONS.

       In this subtitle, the following definitions shall apply:
       (1) Affiliated group.--The term ``affiliated group'' 
     means--
       (A) with respect to any nonbankrupt defendant participant 
     that is an ultimate parent or a person whose entire 
     beneficial interest is owned on the date of enactment of this 
     Act, directly or indirectly, by an ultimate parent, that set 
     of nonbankrupt persons including the ultimate parent and all 
     of the nonbankrupt persons whose entire beneficial interest 
     shall be owned on December 31, 2002, directly or indirectly, 
     by that ultimate parent; or
       (B) with respect to any bankrupt defendant participant, the 
     debtor and all of its direct and indirect majority owned 
     subsidiaries, whether or not such subsidiaries are debtors.
       (2) Debtor.--The term ``debtor''--
       (A) means all entities that are subject to a case pending 
     under any chapter of title 11, United States Code, on the 
     date of enactment of this Act; 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 final judgment.
       (3) Indemnifiable cost.--The term ``indemnifiable cost'' 
     means a cost, expense, debt, judgment, or settlement incurred 
     with respect to an asbestos claim that, at any time before 
     December 31, 2002, was or could have been subject to 
     indemnification, contribution, surety, or guaranty.
       (4) Indemnitee.--The term ``indemnitee'' means a person 
     against whom any asbestos claim has been asserted before 
     December 31, 2002, who has received from any other person, or 
     on whose behalf a sum has been paid by such other person to 
     any third person, in settlement, judgment, defense, or 
     indemnity in connection with an alleged duty with respect to 
     the defense or indemnification of such person concerning that 
     asbestos claim, other than under a policy of insurance or 
     reinsurance.
       (5) Indemnitor.--The term ``indemnitor'' means a person who 
     has paid under a written agreement at any time before 
     December 31, 2002, a sum in settlement, judgment, defense, or 
     indemnity to or on behalf of any person defending against an 
     asbestos claim, in connection with an alleged duty with 
     respect to the defense or indemnification of such person 
     concerning that asbestos claim, except that payments by an 
     insurer or reinsurer under a contract of insurance or 
     reinsurance shall not make the insurer or reinsurer an 
     indemnitor for purposes of this subtitle.
       (6) Prior asbestos expenditures.--The term ``prior asbestos 
     expenditures''--
       (A) means the gross total amount paid by or on behalf of a 
     person at any time before December 31, 2002, in settlement, 
     judgment, defense, or indemnity costs related to all asbestos 
     claims against that person;
       (B) includes payments made by insurance carriers to or for 
     the benefit of such person or on such person's behalf with 
     respect to such asbestos claims, except as provided in 
     section 204(g);
       (C) shall not include any payment made by a person in 
     connection with any activities or disputes related to 
     insurance coverage matters for asbestos-related liabilities; 
     and
       (D) shall not include any payment made by or on behalf of 
     persons who are common carriers by railroad for asbestos 
     claims brought under the Act of April 22, 1908 (45 U.S.C. 51 
     et seq.), commonly known as the Federal Employers' Liability 
     Act, including settlement, judgment, defense, or indemnity 
     costs associated with these claims.
       (7) Trust.--The term ``trust'' means all persons or 
     affiliated groups that formed under section 524(g) of title 
     11, United States Code, or formed under any plan under 
     section 1129 of title 11, United States Code, for the purpose 
     of administering and paying asbestos claims.
       (8) Ultimate parent.--The term ``ultimate parent'' means a 
     person--
       (A) that owns, on the date of enactment of this Act, the 
     entire beneficial interest, directly or indirectly, of at 
     least 1 other person; and
       (B) whose entire beneficial interest is not owned, on 
     December 31, 2002, directly or indirectly, by any other 
     single person.

     SEC. 202. AUTHORITY AND TIERS.

       (a) Assessment.--
       (1) In general.--The Administrator shall assess from 
     defendant participants contributions to the Fund in 
     accordance with this section based on tiers and subtiers 
     assigned to defendant participants.
       (2) Aggregate contribution level.--The total contribution 
     required of all defendant participants over the life of the 
     Fund shall be equal to $45,000,000,000.
       (b) Tier I.--The Administrator shall assign to Tier I all 
     persons that are debtors or affiliated groups that include a 
     person that--
       (1) is a debtor on the date of enactment of this Act or at 
     any time during the 1-year period preceding that date; and
       (2) have paid a prior asbestos expenditure, irrespective of 
     whether a related case under title 11, United States Code, is 
     dismissed.
       (c) Treatment of Tier I Business Entities in Bankruptcy.--
       (1) Defined term.--In this subsection, the term ``bankrupt 
     business entity'' means a person that is not a natural person 
     that--
       (A) filed under chapter 11, of title 11, United States 
     Code, before January 1, 2003;
       (B) has not confirmed a plan of reorganization as of the 
     date of enactment of this Act; and
       (C) the Chief Executive Officer, Chief Financial Officer, 
     or Chief Legal Officer of that business entity certifies in 
     writing to the bankruptcy court presiding over the business 
     entity's case, that asbestos liability was neither the sole 
     nor precipitating cause for the filing under chapter 11.
       (2) Proceeding with reorganization plan.--A bankrupt 
     business entity may proceed with the filing, solicitation, 
     and confirmation of a plan of reorganization that does not 
     comply with the requirements of this Act, including a trust 
     and channeling injunction under section 524(g) of title 11, 
     United States Code, notwithstanding any other provisions of 
     this Act, if--
       (A) the bankruptcy court presiding over the chapter 11 case 
     of the bankrupt business entity determines that--
       (i) confirmation is necessary to permit the reorganization 
     of that entity and assure that all creditors and that entity 
     are treated fairly and equitably; and
       (ii) confirmation is clearly favored by the balance of the 
     equities; and
       (B) an order confirming the plan of reorganization is 
     entered by the bankruptcy court within 9 months after the 
     date of enactment of this Act or such longer period of time 
     approved by the bankruptcy court for cause shown.
       (3) Applicability.--If the bankruptcy court does not make 
     the required determination, or if an order confirming the 
     plan is not entered within 9 months of the effective date of 
     this Act or such longer period of time approved by the 
     bankruptcy court for cause shown, the provisions of the Act 
     shall apply to the bankrupt business entity notwithstanding 
     the certification. Any timely appeal under title 11, United 
     States Code, from

[[Page 12070]]

     a confirmation order entered during the applicable time 
     period shall automatically extend the time during which this 
     Act is inapplicable to the bankrupt business entity, until 
     the appeal is fully and finally resolved.
       (4) Offsets.--
       (A) Payments by insurers.--To the extent that a bankrupt 
     business entity successfully confirms a plan of 
     reorganization, including a trust under section 524(g) of 
     title 11, United States Code, and channeling injunction that 
     involves payments by insurers who are otherwise subject to 
     this Act, an insurer who makes payments to the trust under 
     section 524(g) of title 11, United States Code, shall obtain 
     a dollar for dollar reduction in the amount otherwise payable 
     by that insurer under this Act to the Fund.
       (B) Contributions to fund.--Any cash payments by a bankrupt 
     business entity, if any, to a trust under section 524(g) of 
     title 11, United States Code, may be counted as a 
     contribution to the Fund.
       (d) Tiers II Through VI.--Except as provided in sections 
     202(b), 204(b), and 204(g), persons or affiliated groups 
     shall be assigned to Tier II, III, IV, V, or VI according to 
     the prior asbestos expenditures paid by such persons or 
     affiliated groups as follows:
       (1) Tier II: $75,000,000 or greater.
       (2) Tier III: $50,000,000 or greater but less than 
     $75,000,000.
       (3) Tier IV: $10,000,000 or greater but less than 
     $50,000,000.
       (4) Tier V: $5,000,000 or greater but less than 
     $10,000,000.
       (5) Tier VI: $1,000,000 or greater but less than 
     $5,000,000.
       (e) Assignments and Costs.--
       (1) Permanent assignment.--Subject to section 204(d), after 
     the Administrator has assigned a person or affiliated group 
     to a tier under this section, such person or affiliated group 
     shall remain in that tier throughout the life of the Fund, 
     regardless of subsequent events, including--
       (A) the filing of a petition under a chapter of title 11, 
     United States Code;
       (B) a discharge from bankruptcy;
       (C) the confirmation of a plan of reorganization; or
       (D) the sale or transfer of assets to any other person or 
     affiliated group.
       (2) Costs.--The payment of contributions to the Fund by all 
     persons or affiliated groups that include a person that is a 
     debtor that is the subject of a case under a chapter of title 
     11, United States Code, after the date of enactment of this 
     Act--
       (A) shall constitute costs and expenses of administration 
     of the case under section 503 of that title 11 and shall be 
     payable in accordance with the payment provisions under this 
     subtitle notwithstanding the pendency of the case under that 
     title 11;
       (B) shall not be stayed or affected as to enforcement or 
     collection by any stay or injunction power of any court; and
       (C) shall not be impaired or discharged in any current or 
     future case under title 11, United States Code.
       (f) Superseding Provisions.--Any plan of reorganization 
     with respect to any debtor assigned to Tier I and any 
     agreement, understanding, or undertaking by any such debtor 
     or any third party with respect to the treatment of any 
     asbestos claim filed before the date of enactment of this Act 
     and subject to confirmation of a plan under chapter 11 of 
     title 11, United States Code, shall be superseded in their 
     entirety by this Act. Any such plan of reorganization, 
     agreement, understanding, or undertaking by any debtor or any 
     third party shall be of no force or effect, and no person 
     shall have any rights or claims with respect to any of the 
     foregoing.

     SEC. 203. SUBTIER ASSESSMENTS.

       (a) In General.--
       (1) Assessments.--Except as provided under subsections (a), 
     (b), (d), (f), and (g) of section 204, the Administrator 
     shall assess contributions to persons or affiliated groups 
     within Tiers I through VII in accordance with this section.
       (2) 2002 revenues.--The audited consolidated revenue for 
     the year 2002 of each debtor (in this section referred to as 
     ``2002 revenues'') shall include the revenues for year 2002 
     of the debtor and all of its affiliated groups. The pro forma 
     revenues of a person or affiliated group that are assigned to 
     Subtier 3 shall not be included in calculating the 2002 
     revenues of any debtor that is a direct or indirect majority 
     owner of such Subtier 3 person or affiliated group.
       (3) Gross revenues.--
       (A) In general.--For purposes of this section, gross 
     revenues shall be determined in accordance with generally 
     accepted accounting principles, consistently applied, using 
     the amount reported as gross revenues in the annual report 
     filed with the Securities and Exchange Commission in 
     accordance with section 13(a)(2) of the Securities Exchange 
     Act of 1934 (15 U.S.C. 78m(a)(2)) for the year ending 
     December 31, 2002, or, if applicable, the earlier fiscal year 
     that ends during calendar year 2002, if such fiscal year is 
     principally employed by the defendant participant.
       (B) Insurance premiums.--Any portion of gross revenues of a 
     defendant participant that is derived from insurance premiums 
     shall not be used to calculate the share of that defendant 
     participant as a manufacturer non-insurer.
       (C) Privately-held companies.--If the defendant participant 
     is not required to file an earnings report with the 
     Securities and Exchange Commission, gross revenues shall be 
     the amount that the defendant participant would have reported 
     as gross revenues in the event that it had been required to 
     file the report described under subparagraph (A).
       (b) Tier I Subtiers.--
       (1) In general.--Except as provided under subsections (a), 
     (b), (d), (f), and (g) of section 204, the Administrator 
     shall assign each person or affiliated group in Tier I to 1 
     of 4 Subtiers. Each person or affiliated group shall make 
     contributions to the Fund as provided under this section.
       (2) Subtier 1.--
       (A) In general.--All persons that are debtors or affiliated 
     groups, which include a debtor with prior asbestos 
     expenditures of $10,000,000 or greater, shall be assigned to 
     Subtier 1.
       (B) Assignment.--Each debtor assigned to Subtier 1 shall 
     make annual payments based on a percentage of its 2002 
     revenues.
       (C) Payment.--Each debtor assigned to Subtier 1 shall pay 
     on an annual basis the following with respect to the year of 
     the establishment of the Fund:
       (i) Years 1 through 5, 1.4533 percent of the debtor's 2002 
     revenues.
       (ii) Years 6 through 8, 1.3080 percent of the debtor's 2002 
     revenues.
       (iii) Years 9 through 11, 1.1772 percent of the debtor's 
     2002 revenues.
       (iv) Years 12 through 14, 1.0595 percent of the debtor's 
     2002 revenues.
       (v) Years 15 through 17, 0.9535 percent of the debtor's 
     2002 revenues.
       (vi) Years 18 through 20, 0.8582 percent of the debtor's 
     2002 revenues.
       (vii) Years 21 through 23, 0.7723 percent of the debtor's 
     2002 revenues.
       (viii) Years 24 through 25, 0.6951 percent of the debtor's 
     2002 revenues.
       (3) Subtier 2.--
       (A) In general.--All persons that are debtors or affiliated 
     groups which include a debtor that have no material 
     continuing business operations but hold cash or other assets 
     that have been allocated or earmarked for asbestos 
     settlements shall be assigned to Subtier 2.
       (B) Assignment of assets.--Not later than 30 days after the 
     date of enactment of this Act, each person or affiliated 
     group assigned to Subtier 2 shall assign all of its assets to 
     the Fund.
       (4) Subtier 3.--
       (A) In general.--All persons that are debtors or affiliated 
     groups that include a debtor, other than those included in 
     Subtier 2, which have no material continuing business 
     operations and no cash or other assets allocated or earmarked 
     for the settlement of any asbestos claim, shall be assigned 
     to Subtier 3.
       (B) Assignment of unencumbered assets.--Not later than 30 
     days after the date of enactment of this Act, each person or 
     affiliated group assigned to Subtier 3 shall contribute an 
     amount equal to 50 percent of its total unencumbered assets.
       (C) Calculation of unencumbered assets.--Unencumbered 
     assets shall be calculated as the Subtier 3 person or 
     affiliated group's total assets, excluding insurance related 
     assets, less--
       (i) all allowed administrative expenses;
       (ii) allowed priority claims under section 507 of title 11, 
     United States Code; and
       (iii) allowed secured claims.
       (c) Tier II Subtiers.--
       (1) In general.--The Administrator shall assign each person 
     or affiliated group in Tier II to 1 of 5 subtiers, based on 
     the person's or affiliated group's gross 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 
     gross revenues assigned to Subtier 1;
       (B) those persons or affiliated groups with the next 
     highest gross revenues assigned to Subtier 2;
       (C) those persons or affiliated groups with the lowest 
     gross revenues assigned to Subtier 5;
       (D) those persons or affiliated groups with the next lowest 
     gross revenues assigned to Subtier 4; and
       (E) those persons or affiliated groups remaining assigned 
     to Subtier 3.
       (2) Payment.--Each person or affiliated group within an 
     assigned subtier shall pay, on an annual basis, the 
     following:
       (A) Subtier 1: $25,000,000.
       (B) Subtier 2: $22,500,000.
       (C) Subtier 3: $20,000,000.
       (D) Subtier 4: $17,500,000.
       (E) Subtier 5: $15,000,000.
       (d) Tier III Subtiers.--
       (1) In general.--The Administrator shall assign each person 
     or affiliated group in Tier III to 1 of 5 subtiers, based on 
     the person's or affiliated group's gross 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 
     gross revenues assigned to Subtier 1;
       (B) those persons or affiliated groups with the next 
     highest gross revenues assigned to Subtier 2;
       (C) those persons or affiliated groups with the lowest 
     gross revenues assigned to Subtier 5;

[[Page 12071]]

       (D) those persons or affiliated groups with the next lowest 
     gross revenues assigned to Subtier 4; and
       (E) those persons or affiliated groups remaining assigned 
     to Subtier 3.
       (2) Payment.--Each person or affiliated group within an 
     assigned subtier shall pay, on an annual basis, the 
     following:
       (A) Subtier 1: $15,000,000.
       (B) Subtier 2: $12,500,000.
       (C) Subtier 3: $10,000,000.
       (D) Subtier 4: $7,500,000.
       (E) Subtier 5: $5,000,000.
       (e) Tier IV Subtiers.--
       (1) In general.--The Administrator shall assign each person 
     or affiliated group in Tier IV to 1 of 4 subtiers, based on 
     the person's or affiliated group's gross 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 gross revenues 
     in Subtier 1, those with the lowest gross revenues in Subtier 
     4. Those persons or affiliated groups with the highest gross 
     revenues among those remaining will be assigned to Subtier 2 
     and the rest in Subtier 3.
       (2) Payment.--Each person or affiliated group within an 
     assigned subtier shall pay, on an annual basis, the 
     following:
       (A) Subtier 1: $3,500,000.
       (B) Subtier 2: $2,250,000.
       (C) Subtier 3: $1,500,000.
       (D) Subtier 4: $500,000.
       (f) Tier V Subtiers.--
       (1) In general.--The Administrator shall assign each person 
     or affiliated group in Tier V to 1 of 3 subtiers, based on 
     the person's or affiliated group's gross 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 gross revenues 
     in Subtier 1, those with the lowest gross revenues in Subtier 
     3, and those remaining in Subtier 2.
       (2) Payment.--Each person or affiliated group within an 
     assigned subtier shall pay, on an annual basis, the 
     following:
       (A) Subtier 1: $1,000,000.
       (B) Subtier 2: $500,000.
       (C) Subtier 3: $200,000.
       (g) Tier VI Subtiers.--
       (1) In general.--The Administrator shall assign each person 
     or affiliated group in Tier VI to 1 of 3 subtiers, based on 
     the person's or affiliated group's gross 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 gross revenues 
     in Subtier 1, those with the lowest gross revenues in Subtier 
     3, and those remaining in Subtier 2.
       (2) Payment.--Each person or affiliated group within an 
     assigned subtier shall pay, on an annual basis, the 
     following:
       (A) Subtier 1: $500,000.
       (B) Subtier 2: $250,000.
       (C) Subtier 3: $100,000.
       (h) Tier VII.--
       (1) In general.--Notwithstanding any assignment to Tiers 
     II, III, IV, V, and VI based on prior asbestos expenditures 
     under section 204(g), a person shall be assigned to Tier VII 
     if the person--
       (A) is a common carrier by railroad subject to asbestos 
     claims brought under the Federal Employers' Liability Act (45 
     U.S.C. 51 et seq.); and
       (B) have paid not less than $5,000,000 in settlement, 
     judgment, defense, or indemnity costs relating to such 
     claims.
       (2) Additional amount.--The contribution requirement for 
     persons assigned to Tier VII shall be in addition to any 
     applicable contribution requirement that such person may be 
     assessed under Tiers II through VI.
       (3) Subtier 1.--The Administrator shall assign each person 
     or affiliated group in Tier VII with gross revenues of not 
     less than $5,000,000,000 to Subtier 1 and shall require each 
     such person or affiliated group to make annual payments of 
     $10,000,000 into the Fund.
       (4) Subtier 2.--The Administrator shall assign each person 
     or affiliated group in Tier VII with gross revenues of less 
     than $5,000,000,000, but not less than $3,000,000,000 to 
     Subtier 2, and shall require each such person or affiliated 
     group to make annual payments of $5,000,000 into the Fund.
       (5) Subtier 3.--The Administrator shall assign each person 
     or affiliated group in Tier VII with gross revenues of less 
     than $3,000,000,000, but not less than $500,000,000 to 
     Subtier 3, and shall require each such person or affiliated 
     group to make annual payments of $500,000 into the Fund.
       (6) Joint venture revenues and liability.--
       (A) Revenues.--For purposes of this subsection, the 
     revenues of a joint venture shall be included on a pro rata 
     basis reflecting relative joint ownership to calculate the 
     revenues of the parents of that joint venture. The joint 
     venture shall not be responsible for a contribution amount 
     under this subsection.
       (B) Liability.--For purposes of this subsection, the 
     liability under the Act of April 22, 1908 (45 U.S.C. 51 et 
     seq.), commonly known as the Federal Employers' Liability 
     Act, shall be attributed to the parent owners of the joint 
     venture on a pro rata basis, reflecting their relative share 
     of ownership. The joint venture shall not be responsible for 
     a contribution amount under this provision.

     SEC. 204. ASSESSMENT ADMINISTRATION.

       (a) Reduction Adjustments.--The Administrator shall assess 
     contributions based on amounts provided under this subtitle 
     for each person or affiliated group within Tiers II, III, IV, 
     V, VI, and VII for the first 5 years of the operation of the 
     Fund. Beginning in year 6, and every 3 years thereafter, the 
     Administrator shall reduce the contribution amount for each 
     defendant participant in each of these tiers by 10 percent of 
     the amount assessed in the prior year.
       (b) Small Business Exemption.--A person or affiliated group 
     that is a small business concern (as defined under section 3 
     of the Small Business Act (15 U.S.C. 632)), on December 31, 
     2002, is exempt from any contribution requirement under this 
     subsection.
       (c) Procedures.--The Administrator shall prescribe 
     procedures on how contributions assessed under this subtitle 
     are to be paid.
       (d) Exceptions.--
       (1) In general.--Under expedited procedures established by 
     the Administrator, a defendant participant may seek 
     adjustment of the amount of its contribution based on severe 
     financial hardship or demonstrated inequity. The 
     Administrator may determine whether to grant an adjustment 
     and the size of any such adjustment, in accordance with this 
     subsection. Such determinations shall not prejudice the 
     integrity of the Fund and shall not be subject to judicial 
     review.
       (2) Financial hardship adjustments.--
       (A) In general.--A defendant may apply for an adjustment 
     based on financial hardship at any time during the life of 
     the Fund and may qualify for such adjustment by demonstrating 
     that the amount of its contribution under the statutory 
     allocation would constitute a severe financial hardship.
       (B) Term.--A hardship adjustment under this subsection 
     shall have a term of 3 years.
       (C) Renewal.--A defendant may renew its hardship adjustment 
     by demonstrating that it remains justified.
       (D) Limitation.--The Administrator may not grant hardship 
     adjustments under this subsection in any year that exceed, in 
     the aggregate, 3 percent of the total annual contributions 
     required of all defendant participants.
       (3) Inequity adjustments.--
       (A) In general.--A defendant may qualify for an adjustment 
     based on inequity by demonstrating that the amount of its 
     contribution under the statutory allocation is exceptionally 
     inequitable when measured against the amount of the likely 
     cost to the defendant of its future liability in the tort 
     system in the absence of the Fund.
       (B) Term.--Subject to the annual availability of funds in 
     the Orphan Share Reserve Account established under section 
     223(e), an inequity adjustment granted by the Administrator 
     under this subsection shall remain in effect for the life of 
     the Fund.
       (C) Limitation.--The Administrator may grant inequity 
     adjustments only to the extent that--
       (i) the financial condition of the Fund is sufficient to 
     accommodate such adjustments;
       (ii) the Orphan Share Reserve Account is sufficient to 
     cover such adjustments for that year; and
       (iii) such adjustments do not exceed 2 percent of the total 
     annual contributions required of all defendant participants.
       (4) Advisory panels.--
       (A) Appointment.--The Administrator shall appoint a 
     Financial Hardship Adjustment Panel and an Inequity 
     Adjustment Panel to advise the Administrator in carrying out 
     this subsection.
       (B) Membership.--The membership of the panels appointed 
     under subparagraph (A) may overlap.
       (C) Coordination.--The panels appointed under subparagraph 
     (A) shall coordinate their deliberations and recommendations.
       (e) Limitation on Liability.--The liability of each 
     defendant participant to contribute to the Fund shall be 
     limited to the payment obligations under this subtitle, and 
     no defendant participant shall have any liability for the 
     payment obligations of any other defendant participant.
       (f) Consolidation of Contributions.--
       (1) In general.--For purposes of determining the 
     contribution levels of defendant participants, any affiliated 
     group including 1 or more defendant participants may 
     irrevocably elect, as part of the submission to be made under 
     subsection (i), to report on a consolidated basis all of the 
     information necessary to determine the contribution level 
     under this subtitle and contribute to the Fund on a 
     consolidated basis.
       (2) Election.--If an affiliated group elects consolidation 
     as provided in this subsection--
       (A) for purposes of this Act other than this subsection, 
     the affiliated group shall be treated as if it were a single 
     participant, including without limitation with respect to the 
     assessment of a single annual contribution under this 
     subtitle for the entire affiliated group;
       (B) the ultimate parent of the affiliated group shall 
     prepare and submit the submission to be made under subsection 
     (i), on behalf of the entire affiliated group and shall be 
     solely liable, as between the Administrator and the 
     affiliated group only, for the payment of the annual 
     contribution assessed against the affiliated group, except 
     that, if

[[Page 12072]]

     the ultimate parent does not pay when due any contribution 
     for the affiliated group, the Administrator shall have the 
     right to seek payment of all or any portion of the entire 
     amount due from any member of the affiliated group;
       (C) all members of the affiliated group shall be identified 
     in the submission under subsection (i) and shall certify 
     compliance with this subsection and the Administrator's 
     regulations implementing this subsection; and
       (D) the obligations under this subtitle shall not change 
     even if, after the date of enactment of this Act, the 
     beneficial ownership interest between any members of the 
     affiliated group shall change.
       (g) Determination of Prior Asbestos Expenditures.--
       (1) In general.--For purposes of determining a defendant 
     participant's prior asbestos expenditure, the Administrator 
     shall prescribe such rules as may be necessary or appropriate 
     to assure that payments by indemnitors before December 31, 
     2002, shall be counted as part of the indemnitor's prior 
     asbestos expenditure, rather than the indemnitee's prior 
     asbestos expenditure, in accordance with this subsection.
       (2) Indemnifiable costs.--If an indemnitor has paid or 
     reimbursed to an indemnitee any indemnifiable cost or 
     otherwise made a payment on behalf of or for the benefit of 
     an indemnitee to a third party for an indemnifiable cost 
     before December 31, 2002, the amount of such indemnifiable 
     cost shall be solely for the account of the indemnitor for 
     purposes under this Act.
       (3) Insurance payments.--When computing the prior asbestos 
     expenditure with respect to an asbestos claim, any amount 
     paid or reimbursed by insurance shall be solely for the 
     account of the indemnitor, even if the indemnitor would have 
     no direct right to the benefit of the insurance, if--
       (A) such insurance has been paid or reimbursed to the 
     indemnitor or the indemnitee, or paid on behalf of or for the 
     benefit of the indemnitee, any indemnifiable cost related to 
     the asbestos claim; and
       (B) the indemnitor has either, with respect to such 
     asbestos claim or any similar asbestos claim, paid or 
     reimbursed to its indemnitee any indemnifiable cost or paid 
     to any third party on behalf of or for the benefit of the 
     indemnitee any indemnifiable cost.
       (h) Minimum Contributions.--Minimum aggregate contributions 
     of defendant participants to the Fund in any calendar year 
     shall be as follows:
       (1) For each of the first 5 years of the Fund, the 
     aggregate contributions of defendant participants to the fund 
     shall be at least $2,500,000,000.
       (2) After the 5th year, the minimum aggregate contribution 
     shall be reduced by $250,000,000 every 3 years as follows:
       (A) For years 6 through 8, $2,250,000,000.
       (B) For years 9 through 11, $2,000,000,000.
       (C) For years 12 through 14, $1,750,000,000.
       (D) For years 15 through 17, $1,500,000,000.
       (E) For years 18 through 20, $1,250,000,000.
       (F) For years 21 through 23, $1,000,000,000.
       (G) For years 24 through 26, $750,000,000.
       (i) Procedures to Determine Fund Contribution 
     Assessments.--
       (1) Notice to participants.--Not later than 60 days after 
     his or her initial appointment, the Administrator shall--
       (A) directly notify all reasonably identifiable defendant 
     participants of the requirement to submit information 
     necessary to calculate the amount of any required 
     contribution to the Fund; and
       (B) publish in the Federal Register a notice requiring any 
     person who may be a defendant participant (as determined by 
     criteria outlined in the notice) to submit such information.
       (2) Response required.--
       (A) In general.--Any person who receives notice under 
     paragraph (1)(A), and any other person meeting the criteria 
     specified in the notice published under paragraph (1)(B), 
     shall respond by providing the Administrator with all the 
     information requested in the notice at the earlier of--
       (i) 30 days after the receipt of direct notice; or
       (ii) 30 days after the publication of notice in the Federal 
     Register.
       (B) Certification.--The response submitted under 
     subparagraph (A) shall be signed by a responsible corporate 
     officer, general partner, proprietor, or individual of 
     similar authority, who shall certify under penalty of law the 
     completeness and accuracy of the information submitted.
       (3) Notice of initial determination.--
       (A) In general.--Not later than 60 days after receiving a 
     response under paragraph (2), the Administrator shall send 
     the participant a notice of initial determination assessing a 
     contribution to the Fund, which shall be based on the 
     information received from the participant in response to the 
     Administrator's request for information.
       (B) No response; incomplete response.--If no response is 
     received from the participant, or if the response is 
     incomplete, the initial determination assessing a 
     contribution from the participant shall be based on the best 
     information available to the Administrator.
       (4) Confidentiality.--Any Person may designate any 
     information submitted under this subsection as confidential 
     commercial or financial information for purposes of the 
     Freedom of Information Act (5 U.S.C. 552). The Administrator 
     shall adopt procedures for designating such information as 
     confidential.
       (5) New information.--
       (A) Existing participant.--The Administrator shall adopt 
     procedures for revising initial assessments based on new 
     information received after the initial assessments are 
     calculated.
       (B) Additional participant.--If the Administrator, at any 
     time, receives information that an additional person may 
     qualify as a participant, the Administrator shall require 
     such person to submit information necessary to determine 
     whether an initial determination assessing a contribution 
     from that person should be issued, in accordance with the 
     requirements of this subsection.
       (6) Payment schedule.--Any initial determination issued 
     under this subsection may allow for periodic payments, 
     provided that the full annual amount assessed is paid each 
     year. Each participant shall pay its contribution to the Fund 
     in the amount specified it the initial determination of 
     assessment from the Administrator, according to the schedule 
     specified in the initial determination.
       (7) Subpoenas.--The Administrator may request the Attorney 
     General to subpoena persons to compel testimony, records, and 
     other information relevant to its responsibilities under this 
     section. The Attorney General may enforce such subpoena in 
     appropriate proceedings in the United States district court 
     for the district in which the person to whom the subpoena was 
     addressed resides, was served, or transacts business.
       (8) Rehearing.--A Participant has a right to obtain 
     rehearing of the Administrator's initial determination 
     pursuant to section 202.

                Subtitle B--Asbestos Insurers Commission

     SEC. 211. ESTABLISHMENT OF ASBESTOS INSURERS COMMISSION.

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

     SEC. 212. DUTIES OF ASBESTOS INSURERS COMMISSION.

       (a) Determination of Insurer Liability for Asbestos 
     Injuries.--
       (1) In general.--The Commission shall determine the amount 
     that each insurer participant will be required to pay into 
     the Fund to satisfy their contractual obligation to 
     compensate claimants for asbestos injuries.
       (2) Allocation agreement.--
       (A) In general.--Not later than 30 days after the 
     Commission issues its initial determination, the insurer 
     participants may submit an allocation agreement, approved by 
     all of the insurer participants, to--
       (i) the Commission;
       (ii) the Committee on the Judiciary of the Senate; and
       (iii) the Committee on the Judiciary of the House of 
     Representatives.

[[Page 12073]]

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

     SEC. 213. POWERS OF ASBESTOS INSURERS COMMISSION.

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

     SEC. 214. PERSONNEL MATTERS.

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

[[Page 12074]]



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

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

     SEC. 216. TERMINATION OF ASBESTOS INSURERS COMMISSION.

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

     SEC. 217. AUTHORIZATION OF APPROPRIATIONS.

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

        Subtitle C--Office of Asbestos Injury Claims Resolution

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

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

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

       (a) General Powers.--The Administrator shall have the 
     following general powers:
       (1) To promulgate such regulations as the Administrator 
     determines to be necessary to implement the provisions of 
     this subtitle.
       (2) To appoint employees or contract for the services of 
     other personnel as may be necessary and appropriate to carry 
     out the provisions of this subtitle, including entering into 
     cooperative agreements with other Federal agencies.
       (3) To make such expenditures as may be necessary and 
     appropriate in the administration of this subtitle.
       (4) To take all actions necessary to prudently manage the 
     Fund, including--
       (A) administering, in a fiduciary capacity, the assets of 
     the Fund for the exclusive purpose of providing benefits to 
     asbestos claimants and their beneficiaries;
       (B) defraying the reasonable expenses of administering the 
     Fund;
       (C) investing the assets of the Fund in accordance with 
     subsection (b)(2); and
       (D) retaining advisers, managers, and custodians who 
     possess the necessary facilities and expertise to provide for 
     the skilled and prudent management of the Fund, to assist in 
     the development, implementation and maintenance of the Fund's 
     investment policies and investment activities, and to provide 
     for the safekeeping and delivery of the Fund's assets.
       (5) To have all other powers incidental, necessary, or 
     appropriate to carrying out the functions of the Office.
       (b) Requirements Relating to Fund Assets.--
       (1) In general.--Amounts in the Fund shall be held for the 
     exclusive purpose of providing benefits to asbestos claimants 
     and their beneficiaries and to otherwise defray the 
     reasonable expenses of administering the Fund.
       (2) Investments.--
       (A) In general.--Amounts in the Fund shall be administered 
     and invested with the care, skill, prudence, and diligence, 
     under the circumstances prevailing at the time of such 
     investment, that a prudent person acting in a like capacity 
     and manner would use.
       (B) Strategy.--The Administrator shall invest amounts in 
     the Fund in a manner that enables the Fund to make current 
     and future distributions to or for the benefit of asbestos 
     claimants. In pursuing an investment strategy under this 
     subparagraph, the Administrator shall consider, to the extent 
     relevant to an investment decision or action--
       (i) the size of the Fund;
       (ii) the nature and estimated duration of the Fund;
       (iii) the liquidity and distribution requirements of the 
     Fund;
       (iv) general economic conditions at the time of the 
     investment;
       (v) the possible effect of inflation or deflation on Fund 
     assets;
       (vi) the role that each investment or course of action 
     plays with respect to the overall assets of the Fund;
       (vii) the expected amount to be earned (including both 
     income and appreciation of capital) through investment of 
     amounts in the Fund; and
       (viii) the needs of asbestos claimants for current and 
     future distributions authorized under this Act.

     SEC. 223. ASBESTOS INJURY CLAIMS RESOLUTION FUND.

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

     SEC. 224. ENFORCEMENT OF CONTRIBUTIONS.

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

[[Page 12075]]

       (2) Defense limitation.--In any proceeding under this 
     subsection, the participant shall be barred from bringing any 
     challenge to the assessment if such challenge could have been 
     made during the review period under section 202(b)(4) or 
     212(b)(4), or a judicial review proceeding under title III.

     SEC. 225. ADDITIONAL CONTRIBUTING PARTICIPANTS.

       (a) Defined Term.--In this section, the term ``additional 
     contributing participant'' means any defendant in an asbestos 
     claim that is not a mandatory participant under subtitle A 
     and is likely to avoid future civil liability as a result of 
     this Act.
       (b) Assessment.--In addition to contributions assessed 
     under subtitle A, the Administrator may assess additional 
     contributing participants for contributions to the Fund. Any 
     additional contributing participant assessed under this 
     section shall be treated as a defendant participant for 
     purposes of procedures and appeals under this Act.
       (c) Assessment Limitations.--The Administrator may assess 
     under subsection (b), over the life of the Fund, an amount 
     not to exceed $10,000,000,000 from all additional 
     contributing participants.

                       TITLE III--JUDICIAL REVIEW

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

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

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

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

     SEC. 303. EXCLUSIVE REVIEW.

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

     SEC. 304. PRIVATE RIGHT OF ACTION AGAINST REINSURERS.

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

                   TITLE IV--MISCELLANEOUS PROVISIONS

     SEC. 401. FALSE INFORMATION.

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

     SEC. 402. EFFECT ON BANKRUPTCY LAWS.

       (a) No Automatic Stay.--Section 362(b) of title 11, United 
     States Code, is amended--
       (1) in paragraph (17), by striking ``or'' at the end;
       (2) in paragraph (18), by striking the period at the end 
     and inserting ``; or''; and
       (3) by inserting after paragraph (18) the following:
       ``(19) of the enforcement of any payment obligations under 
     section 204 of the Fairness in Asbestos Injury Resolution Act 
     of 2003, against a debtor, or the property of the estate of a 
     debtor, that is a participant (as that term is defined in 
     section 3 of that Act).''.
       (b) Assumption of Executory Contracts.--Section 365 of 
     title 11, United States Code, is amended by adding at the end 
     the following:
       ``(q) If a debtor is a participant (as that term is defined 
     in section 3 of the Fairness in Asbestos Injury Resolution 
     Act of 2003), the trustee shall be deemed to have assumed all 
     executory contracts entered into by the participant under 
     section 204 of that Act. The trustee may not reject any such 
     executory contract.''.
       (c) Allowed Administrative Expenses.--Section 503 of title 
     11, United States Code, is amended by adding at the end the 
     following:
       ``(c)(1) Claims of the United States, the Attorney General, 
     or the Administrator (as that term is defined in section 3 of 
     the Fairness in Asbestos Injury Resolution Act of 2003) based 
     upon the asbestos payment obligations of a debtor that is a 
     Participant (as that term is defined in section 3 of that 
     Act), shall be paid as an allowed administrative expense. The 
     debtor shall not be entitled to either notice or a hearing 
     with respect to such claims.
       ``(2) For purposes of paragraph (1), the term ``asbestos 
     payment obligation'' means any payment obligation under 
     subtitle B of title II of the Fairness in Asbestos Injury 
     Resolution Act of 2003.''.
       (d) No Discharge.--Section 523 of title 11, United States 
     Code, is amended by adding at the end the following:
       ``(f) A discharge under section 727, 1141, 1228, or 1328 of 
     this title does not discharge any debtor that is a 
     participant (as that term is defined in section 3 of the 
     Fairness in Asbestos Injury Resolution Act of 2003) of the 
     payment obligations of the debtor under subtitle B of title 
     II of that Act.''.
       (e) Payment.--Section 524 of title 11, United States Code, 
     is amended by adding at the end the following:
       ``(i) Participant Debtors.--
       ``(1) In general.--Paragraphs (2) and (3) shall apply to a 
     debtor who--
       ``(A) is a participant that has made prior asbestos 
     expenditures (as such terms are defined in the Fairness in 
     Asbestos Injury Resolution Act of 2003); and
       ``(B) is subject to a case under this title that is 
     pending--
       ``(i) on the date of enactment of the Fairness in Asbestos 
     Injury Resolution Act of 2003; or
       ``(ii) at any time during the 1 year period preceding the 
     date of enactment of that Act.
       ``(2) Tier I debtors.--A debtor that has been assigned to 
     tier I under section 202 of the Fairness in Asbestos Injury 
     Resolution

[[Page 12076]]

     Act of 2003 shall make payments in accordance with sections 
     202 and 203 of that Act.
       ``(3) Treatment of Payment Obligations.--All payment 
     obligations of a debtor under sections 202 and 203 of the 
     Fairness in Asbestos Injury Resolution Act of 2003 shall--
       ``(A) constitute costs and expenses of administration of a 
     case under section 503 of this title;
       ``(B) notwithstanding any case pending under this title, be 
     payable in accordance with section 202 of that Act;
       ``(C) not be stayed;
       ``(D) not be affected as to enforcement or collection by 
     any stay or injunction of any court; and
       ``(E) not be impaired or discharged in any current or 
     future case under this title.''.
       (f) Treatment of Trusts.--Section 524 of title 11, United 
     States Code, as amended by this Act, is amended by adding at 
     the end the following:
       ``(j) Asbestos Trusts.--
       ``(1) In general.--A trust shall assign a portion of the 
     corpus of the trust to the Asbestos Injury Claims Resolution 
     Fund (referred to in this subsection as the `Fund') as is 
     required under section 202 of the Fairness in Asbestos Injury 
     Resolution Act of 2003 if--
       ``(A) the trust was formed prior to October 22, 1994; and
       ``(B) the trust qualifies as a ``trust'' under section 201 
     of that Act.
       ``(2) Transfer of trust assets.--
       ``(A) In general.--Except as provided under subparagraphs 
     (B) and (C), the assets in any trust established to provide 
     compensation for asbestos claims (as defined in section 3 of 
     the FAIR Act of 2003) shall be transferred to the Fund not 
     later than 6 months after the date of enactment of the FAIR 
     Act of 2003. Except as provided under subparagraph (B), the 
     Administrator of the Fund shall accept such assets and 
     utilize them for any purposes of the Fund under section 223 
     of such Act, including the payment of claims for compensation 
     under such Act to beneficiaries of the trust from which the 
     assets were transferred. After such transfer, each trustee of 
     such trust shall have no liability to any beneficiary of such 
     trust.
       ``(B) Authority to refuse assets.--The Administrator of the 
     Fund may refuse to accept any asset that the Administrator 
     determines may create liability for the Fund in excess of the 
     value of the asset.
       ``(C) Allocation of trust assets.--If a trust under 
     subparagraph (A) has beneficiaries with claims that are not 
     asbestos claims, the assets transferred to the Fund under 
     subparagraph (A) shall not include assets allocable to such 
     beneficiaries. The trustees of any such trust shall determine 
     the amount of such trust assets to be reserved for the 
     continuing operation of the trust in processing and paying 
     claims that are not asbestos claims. Such reserved amount 
     shall not be greater than 3 percent of the total assets in 
     the trust and shall not be transferred to the Fund.
       ``(D) Sale of fund assets.--The investment requirements 
     under section 222 of the FAIR Act of 2003 shall not be 
     construed to require the Administrator of the Fund to sell 
     assets transferred to the Fund under subparagraph (A).
       ``(E) Liquidated claims.--A trust shall not make any 
     payment relating to asbestos claims unless such claims were 
     liquidated before the date of enactment of the FAIR Act of 
     2003.
       ``(3) Injunction.--Any injunction issued as part of the 
     formation of a trust described in paragraph (1) shall remain 
     in full force and effect until the assignment required under 
     paragraph (1) has been made.''.
       (g) No Avoidance of Transfer.--Section 546 of title 11, 
     United States Code, is amended by adding at the end the 
     following:
       ``(h) Notwithstanding the rights and powers of a trustee 
     under section 544, 545, 547, 548, 549, and 550 of this title, 
     if a debtor is a participant (as that term is defined in 
     section 3 of the Fairness in Asbestos Injury Resolution Act 
     of 2003), the trustee may not avoid a transfer made by the 
     debtor pursuant to its payment obligations under sections 202 
     or 203 of that Act.''.
       (h) Confirmation of Plan.--Section 1129(a) of title 11, 
     United States Code, is amended by adding at the end the 
     following:
       ``(14) If the debtor is a participant (as that term is 
     defined in section 3 of the Fairness in Asbestos Injury 
     Resolution Act of 2003), the plan provides for the 
     continuation after its effective date of payment of all 
     payment obligations under title II of that Act.''.

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

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

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