[House Report 104-72]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     104-72
_______________________________________________________________________


 
  PROVIDING FOR THE CONSIDERATION OF H.R. 956, THE COMMON SENSE LEGAL 
                      STANDARDS REFORM ACT OF 1995

                                _______


   March 8, 1995.--Referred to the House Calendar and ordered to be 
                                printed

_______________________________________________________________________


    Mr. Linder, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 109]

    The Committee on Rules, having had under consideration 
House Resolution 109, by a record vote of 8 to 4, report the 
same to the House with the recommendation that the resolution 
be adopted.

               Brief Summary of Provisions of Resolution

    The resolution provides for the further consideration of 
H.R. 956, the ``Common Sense Legal Standards Reform Act of 
1995,'' under a modified closed rule. The rule makes in order 
the text of H.R. 1075, the ``Common Sense Product Liability and 
Legal Reform Act of 1995,'' as an original bill for amendment 
purposes. Only amendments printed in this report are in order. 
The amendments are considered as read. Amendments may only be 
offered in the order specified in the report and only by the 
Member designated in this report. The amendments are not 
subject to amendment or to a demand for a division of the 
question in the House or the Committee of the Whole. The 
amendments are debatable for the time specified in this report, 
equally divided between the proponent and an opponent.
    Finally, the rule provides for one motion to recommit, with 
or without instructions.

                            Committee Votes

    Pursuant to clause 2(l)(2)(B) of House rule XI the results 
of each rollcall vote on an amendment or motion to report, 
together with the names of those voting for and against, are 
printed below (the amendment number referred to in the motions 
are the numbers assigned to amendments in the order in which 
they were filed with the Rules Committee):

                    rules committee rollcall no. 64

    Date: March 8, 1995.
    Measure: H.R. 956, The Common Sense Legal Standards Reform 
Act of 1995.
    Motion By: Mr. Moakley.
    Summary of Motion: Substitute an open rule.
    Results: Rejected, 4 to 9.
    Vote by Member: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

                    rules committee rollcall no. 65

    Date: March 8, 1995.
    Measure: H.R. 956, The Common Sense Legal Standards Reform 
Act of 1995.
    Motion By: Mr. Moakley.
    Summary of Motion: Make in order Markey amendment No. 22.
    Results: Rejected, 4 to 9.
    Vote by Member: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

                    rules committee rollcall no. 66

    Date: March 8, 1995.
    Measure: H.R. 956, The Common Sense Legal Standards Reform 
Act of 1995.
    Motion By: Mr. Moakley.
    Summary of Motion: Make in order Schroeder amendment No. 
49.
    Results: Rejected, 4 to 9.
    Vote by Member: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

                    Rules Committee RollCall No. 67

    Date: March 8, 1995.
    Measure: H.R. 956, The Common Sense Legal Standards Reform 
Act of 1995.
    Motion By: Mr. Moakley.
    Summary of Motion: Make in order Scott amendment No. 70 (as 
substitute for Gekas amendment No. 45).
    Results: Rejected, 4 to 9.
    Vote by Member: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; Diaz-Balart--Nay; McInnis--Nay; 
Waldholtz--Nay; Moakley--Yea; Beilenson--Yea; Frost--Yea; 
Hall--Yea; Solomon--Nay.

                    Rules Committee RollCall No. 68

    Date: March 8, 1995.
    Measure: H.R. 956, The Common Sense Legal Standards Reform 
Act of 1995.
    Motion By: Mr. Moakley.
    Summary of Motion: Make in order Frank amendment No. 24.
    Results: Rejected, 4 to 8.
    Vote by Member: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; McInnis--Nay; Waldholtz--Nay; 
Moakley--Yea; Beilenson--Yea; Frost--Yea; Hall--Yea; Solomon--
Nay.

                    Rules Committee RollCall No. 69

    Date: March 8, 1995.
    Measure: H.R. 956, The Common Sense Legal Standards Reform 
Act of 1995.
    Motion By: Mr. Beilenson.
    Summary of Motion: Make in order Berman amendment No. 14.
    Results: Rejected, 4 to 8.
    Vote by Member: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; McInnis--Nay; Waldholtz--Nay; 
Moakley--Yea; Beilenson--Yea; Frost--Yea; Hall--Yea; Solomon--
Nay.

                    Rules Committee RollCall No. 70

    Date: March 8, 1995.
    Measure: H.R. 956, The Common Sense Legal Standards Reform 
Act of 1995.
    Motion By: Mr. Beilenson.
    Summary of Motion: Make in order Eshoo amendments No. 46 
and No. 47 (en bloc).
    Results: Rejected, 4 to 8.
    Vote by Member: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; McInnis--Nay; Waldholtz--Nay; 
Moakley--Yea; Beilenson--Yea; Frost--Yea; Hall--Yea; Solomon--
Nay.

                    rules committee rollcall no. 71

    Date: March 8, 1995.
    Measure: H.R. 956, The Common Sense Legal Standards Reform 
Act of 1995.
    Motion By: Mr. Frost.
    Summary of Motion: Make in order Nadler amendment No. 76.
    Results: Rejected, 5 to 7.
    Vote by Member: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; McInnis--Nay; Waldholtz--Nay; 
Moakley--Yea; Beilenson--Yea; Frost--Yea; Hall--Yea; Solomon--
Nay.

                    rules committee rollcall no. 72

    Date: March 8, 1995.
    Measure: H.R. 956, The Common Sense Legal Standards Reform 
Act of 1995.
    Motion By: Mr. Frost.
    Summary of Motion: Make in order Oxley-Gordon amendment No. 
77.
    Results: Rejected, 4 to 8.
    Vote by Member: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Yea; McInnis--Nay; Waldholtz--Nay; 
Moakley--Yea; Beilenson--Yea; Frost--Yea; Hall--Yea; Solomon--
Nay.

                    rules committee rollcall no. 73

    Date: March 8, 1995.
    Measure: H.R. 956, The Common Sense Legal Standards Reform 
Act of 1995.
    Motion By: Mr. Frost.
    Summary of Motion: Make in order Bryant (TX) amendment No. 
5.
    Results: Rejected, 4 to 8.
    Vote by Member: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; McInnis--Nay; Waldholtz--Nay; 
Moakley--Yea; Beilenson--Yea; Frost--Yea; Hall--Yea; Solomon--
Nay.

                    rules committee rollcall no. 74

    Date: March 8, 1995.
    Measure: H.R. 956, The Common Sense Legal Standards Reform 
Act of 1995.
    Motion By: Mr. Frost.
    Summary of Motion: Make in order Bryant (TX) amendment No. 
4.
    Results: Rejected, 5 to 7.
    Vote by Member: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; McInnis--Nay; Waldholtz--Nay; 
Moakley--Yea; Beilenson--Yea; Frost--Yea; Hall--Yea; Solomon--
Nay.

                    rules committee rollcall no. 75

    Date: March 8, 1995.
    Measure: H.R. 956, The Common Sense Legal Standards Reform 
Act of 1995.
    Motion By: Mr. Frost.
    Summary of Motion: Make in order Bryant (TX) amendment No. 
30.
    Results: Rejected, 5 to 7.
    Vote by Member: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Yea; McInnis--Nay; Waldholtz--Nay; 
Moakley--Yea; Beilenson--Yea; Frost--Yea; Hall--Yea; Solomon--
Nay.

                    rules committee rollcall no. 76

    Date: March 8, 1995.
    Measure: H.R. 956, The Common Sense Legal Standards Reform 
Act of 1995.
    Motion By: Mr. Frost.
    Summary of Motion: Make in order Waters amendment No. 11.
    Results: Rejected, 4 to 8.
    Vote by Member: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; McInnis--Nay; Waldholtz--Nay; 
Moakley--Yea; Beilenson--Yea; Frost--Yea; Hall--Yea; Solomon--
Nay.

                    rules committee rollcall no. 77

    Date: March 8, 1995.
    Measure: H.R. 956, The Common Sense Legal Standards Reform 
Act of 1995.
    Motion By: Mr. Hall.
    Summary of Motion: Make in order Conyers amendment No. 65.
    Results: Rejected, 4 to 8.
    Vote by Member: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; McInnis--Nay; Waldholtz--Nay; 
Moakley--Yea; Beilenson--Yea; Frost--Yea; Hall--Yea; Solomon--
Nay.I89rules committee rollcall no. 78
    Date: March 8, 1995.
    Measure: H.R. 956, The Common Sense Legal Standards Reform 
Act of 1995.
    Motion By: Mr. Hall.
    Summary of Motion: Make in order Deutch amendment No. 9.
    Results: Rejected, 4 to 8.
    Vote by Member: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; McInnis--Nay; Waldholtz--Nay; 
Moakley--Yea; Beilenson--Yea; Frost--Yea; Hall--Yea; Solomon--
Nay.

                    rules committee rollcall no. 79

    Date: March 8, 1995.
    Measure: H.R. 956, The Common Sense Legal Standards Reform 
Act of 1995.
    Motion By: Mr. Hall.
    Summary of Motion: Make in order following amendments en 
bloc: Kaptur No. 64, Nadler No. 74.
    Results: Rejected, 4 to 8.
    Vote by Member: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; McInnis--Nay; Waldholtz--Nay; 
Moakley--Yea; Beilenson--Yea; Frost--Yea; Hall--Yea; Solomon--
Nay.

                    rules committee rollcall no. 80

    Date: March 8, 1995.
    Measure: H.R. 956, The Common Sense Legal Standards Reform 
Act of 1995.
    Motion By: Mr. Moakley.
    Summary of Motion: Make in order following amendments: 
Stupak No. 6 and No. 7; Watt (NC) No. 15, No. 16, No. 18, No. 
19, and No. 20; Collins (IL) No. 31; Jackson-Lee No. 56 and No. 
58; Nadler No. 72 and No. 73; and Scott No. 61.
    Results: Rejected, 4 to 8.
    Vote by Member: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; McInnis--Nay; Waldholtz--Nay; 
Moakley--Yea; Beilenson--Yea; Frost--Yea; Hall--Yea; Solomon--
Nay.

                    rules committee rollcall no. 81

    Date: March 8, 1995.
    Measure: H.R. 956, The Common Sense Legal Standards Reform 
Act of 1995.
    Motion By: Mr. Moakley.
    Summary of Motion: Make in order following amendments: 
Traficant No. 1; Waters No. 10; Furse No. 26; Schumer No. 34; 
Jackson-Lee No. 57; Conyers No. 59; Nadler No. 71; and Stupak 
No. 8.
    Results: Rejected, 4 to 8.
    Vote by Member: Quillen--Nay; Dreier--Nay; Goss--Nay; 
Linder--Nay; Pryce--Nay; McInnis--Nay; Waldholtz--Nay; 
Moakley--Yea; Beilenson--Yea; Frost--Yea; Hall--Yea; Solomon--
Nay.

                    rules committee rollcall no. 82

    Date: March 8, 1995.
    Measure: H.R. 956, The Common Sense Legal Standards Reform 
Act of 1995.
    Motion By: Mr. Quillen.
    Summary of Motion: Report the rule favorably.
    Results: Adopted, 8 to 4.
    Vote by Member: Quillen--Yea; Dreier--Yea; Goss--Yea; 
Linder--Yea; Pryce--Yea; McInnis--Yea; Waldholtz--Yea; 
Moakley--Nay; Beilenson--Nay; Frost--Nay; Hall--Nay; Solomon--
Yea.

                  AMENDMENTS MADE IN ORDER BY THE RULE

 1. The Amendment To Be Offered by Representative Geren of Texas or a 
         Designee, To Be Debatable for Not To Exceed 10 Minutes

    Page 7, insert after line 3 the following:
    (c) Notwithstanding any other provision of law, any person 
engaged in the business of renting or leasing a product shall 
be subject to liability under subsection (a) but shall not 
liable to a claimant for the tortious act of another involving 
a product solely by reason of ownership of such product.
                              ----------                              


2. The Amendment To Be Offered by Representative Schroeder of Colorado 
      or a Designee, To Be Debatable for Not To Exceed 20 Minutes

    Page 11, strike lines 17 through 24, and redesignate 
succeeding sections accordingly.
    Page 17, line 25, insert ``and noneconomic'' before 
``loss''.
                              ----------                              


3. The Amendment To Be Offered by Representative Hyde of Illinois or a 
         Designee, To Be Debatable for Not To Exceed 20 Minutes

    Page 12, strike lines 8 through 11.
                              ----------                              


4. The Amendment To Be Offered by Representative Schumer of New York or 
        a Designee, To Be Debatable for Not To Exceed 20 Minutes

  Page 13, redesignate section 110 as section 111 and insert 
after line 3 the following:

SEC. 110. SUNSHINE, ANTI-SECRECY, CONSUMER EMPOWERMENT, AND LITIGATION 
                    AVOIDANCE.

  (a) In General.--To empower individual consumers with the 
information to avoid defective products, court records in all 
product liability actions are presumed to be open to the 
general public. No court order or opinion in the adjudication 
of a product liability action may be sealed. No court record, 
including records obtained through discovery, whether or not 
formally filed with the court, may be sealed, subjected to a 
protective order, or otherwise have access restricted except 
through a court order based upon particularized findings of 
fact that--
          (1) such order would not restrict the disclosure of 
        information which is relevant to public health or 
        safety; or
          (2)(A) the public interest in disclosure of potential 
        health or safety hazards is clearly outweighed by a 
        specific and substantial interest in maintaining the 
        confidentiality of the information or records in 
        question; and
          (B) the requested order is no broader than necessary 
        to protect the privacy interest asserted.
No such order shall continue in effect after the entry of final 
judgment, or other final disposition, unless at or after such 
entry the court makes a separate particularized finding of fact 
that the requirements of paragraph (1) or (2) have been met.
  (b) Burden.--The party who is the proponent for the entry of 
an order, as provided under subsection (a), shall have the 
burden of proof in obtaining such an order.
  (c) Agreement.--No agreement between or among parties in a 
product liability action filed in a State or Federal court may 
contain a provision that prohibits or otherwise restricts a 
party from disclosing any information relevant to such product 
liability action to any Federal or State agency with authority 
to enforce laws regulating an activity relating to such 
information.
  (d) Intervention.--Any person may intervene as a matter of 
right in a product liability action for the limited purpose of 
participating in proceedings considering limitation of access 
to records upon payment of the fee required for filing a plea 
in intervention.
                              ----------                              


5. The Amendment To Be Offered by Representative Conyers of Michigan or 
        a Designee, To Be Debatable for Not To Exceed 10 Minutes

    Page 13, redesignate section 110 as section 111, and insert 
after line 2 the following:

SEC. 110. FOREIGN PRODUCTS.

    (a) General Rule.--In any product liability action for 
injury that was sustained in the United States and that relates 
to the purchase or use of a product manufactured outside the 
United States by a foreign manufacturer, the Federal court in 
which such action is brought shall have jurisdiction over such 
manufacturer if the manufacturer knew or reasonably should have 
known that the product would be imported for sale or use in the 
United States.
    (b) Admission.--If in any product liability action a 
foreign manufacturer of the product involved in such action 
fails to furnish any testimony, document, or other thing upon a 
duly issued discovery order by the court in such action, such 
failure shall be deemed an admission of any fact with respect 
to which the discovery order relates.
    (c) Process.--Process in an action described in subsection 
(a) may be served wherever the foreign manufacturer is located, 
has an agent, or transacts business.
                              ----------                              


6. The Amendment To Be Offered by Representative Watt of North Carolina 
      or a Designee, To Be Debatable for Not To Exceed 20 Minutes

    Page 17, lines 16-17, strike ``by clear and convincing 
evidence''.
    Page 20, lines 4-11, strike the section in its entirety and 
renumber the subsequent sections accordingly.
                              ----------                              


 7. The Amendment To Be Offered By Representative Furse of Oregon or a 
         Designee, To Be Debatable for Not To Exceed 30 Minutes

    Page 17, strike line 22 and all that follows through line 2 
on page 18 and redesignate the succeeding subsections 
accordingly.
                              ----------                              


8. The Amendment To Be Offered by Representatives Hyde of Illinois or a 
         Designee, To Be Debatable for Not To Exceed 10 Minutes

  Page 3, line 12, strike ``are'' and insert ``is''.
  Page 3, line 15, strike ``protect'' and insert ``project''.
  Page 3, line 23, strike ``and is costing'' and insert 
``causing''.
  Page 4, line 18, strike ``transactions'' and insert 
``transaction''.
  Page 8, beginning in line 2, strike ``Except as provided in 
subsection (c), in'' and insert ``In''.
  Page 8, line 11, strike ``the'' and insert ``a''.
  Page 18, redesignate subsection (e) as subsection (f) and 
insert after line 16 the following:
  (e) Exception.--
          (1) Reasonable care.--A failure to exercise 
        reasonable care in selecting among alternative product 
        designs, formulations, instructions, or warnings shall 
        not, by itself, constitute conduct that may give rise 
        to punitive damages.
          (2) Award of other damages.--Punitive damages may not 
        be awarded in a product liability action unless damages 
        for economic or noneconomic loss have been awarded in 
        such action. For purposes of this paragraph, nominal 
        damages do not constitute damages for economic and 
        noneconomic loss.
  Page 18, line 17, strike ``Consideration'' and insert 
``Considerations''.
  Page 29, in lines 8 and 12, strike ``has'' and insert ``has 
or should have''.

   9. The Amendment To Be Offered by Representative Oxley of Ohio or 
   Representative Burr of North Carolina or Representative Tauzin of 
  Louisiana or Representative Brewster of Oklahoma or Representative 
    Coburn of Oklahoma or Representative Stenholm of Texas or Their 
         Designee, To Be Debatable for Not To Exceed 40 Minutes

  Page 19, insert after line 19 the following:
  (f) Drugs and Devices.--
          (1)(A) Punitive damages shall not be awarded against 
        a manufacturer or product seller of a drug (as defined 
        in section 201(g)(1) of the Federal Food, Drug, and 
        Cosmetic Act (21 U.S.C. 321(g)(1)) or medical device 
        (as defined in section 201(h) of the Federal Food, 
        Drug, and Cosmetic Act (21 U.S.C. 321(h)) which caused 
        the claimant's harm where--
                  (i) such drug or device was subject to 
                premarket approval by the Food and Drug 
                Administration with respect to the safety of 
                the formulation or performance of the aspect of 
                such drug or device which caused the claimant's 
                harm or the adequacy of the packaging or 
                labeling of such drug or device, and such drug 
                was approved by the Food and Drug 
                Administration; or
                  (ii) the drug is generally recognized as safe 
                and effective pursuant to conditions 
                established by the Food and Drug Administration 
                and applicable regulations, including packaging 
                and labeling regulations.
          (B) Subparagraph (A) shall not apply in any case in 
        which the defendant, before or after premarket approval 
        of a drug or device--
                  (i) intentionally and wrongfully withheld 
                from or misrepresented to the Food and Drug 
                Administration information concerning such drug 
                or device required to be submitted under the 
                Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
                301 et seq.) or section 351 of the Public 
                Health Service Act (42 U.S.C. 262) that is 
                material and relevant to the harm suffered by 
                the claimant, or
                  (ii) made an illegal payment to an official 
                or employee of the Food and Drug Administration 
                for the purpose of securing or maintaining 
                approval of such drug or device.
          (2) Packaging.--In a product liability action for 
        harm which is alleged to relate to the adequacy of the 
        packaging (or labeling relating to such packaging) of a 
        drug which is required to have tamper-resistant 
        packaging under regulations of the Secretary of Health 
        and Human Services (including labeling regulations 
        related to such packaging), the manufacturer of the 
        drug shall not be held liable for punitive damages 
        unless the drug is found by the court by clear and 
        convincing evidence to be substantially out of 
        compliance with such regulations.

  10. The Amendment To Be Offered by Representative Hoke of Ohio or a 
         Designee, To Be Debatable for Not To Exceed 20 Minutes

    Page 19, redesignate section 202 as section 203 and insert 
after line 19 the following:

SEC. 202. DEPOSIT OF DAMAGES.

    If punitive damages of more than $250,000 are awarded in a 
civil liability action, 75 percent of the amount of such 
damages in excess of $250,000 shall be deposited--
          (1) if the action was in a Federal court, in the 
        treasury of the State in which such court sits, and
          (2) if the action was in a State court, in the 
        treasury of the State in which such court sits.
This section shall be applied by the court and shall not be 
disclosed to the jury.
                              ----------                              


11. The Amendment To Be Offered by Representative Cox of California or 
        a Designee, To Be Debatable for Not To Exceed 40 Minutes

  Page 1, strike line 7 and all that follows through the matter 
that precedes line 1 on page 2, and insert the following:
  (b) Table of Contents.--The table of contents is as follows:

Sec. 1. Short title and table of contents.
Sec. 2. Findings and purposes.

                    TITLE I--PRODUCT LIABILITY REFORM

Sec. 101. Applicability.
Sec. 102. Liability rules applicable to product sellers.
Sec. 103. Defense based on claimant's use of intoxicating alcohol or 
          drugs.
Sec. 104. Misuse or alteration.
Sec. 105. Frivolous pleadings.
Sec. 106. Several liability for noneconomic loss.
Sec. 107. Statute of repose.
Sec. 108. Definitions.

     TITLE II--LIMITATION ON SPECULATIVE AND ARBITRARY DAMAGE AWARDS

Sec. 201. Treble damages as penalty in civil actions.
Sec. 202. Limitation on additional payments beyond actual damages.
Sec. 203. Fair share rule for noneconomic damage awards.
Sec. 204. Definitions.

                    TITLE III--BIOMATERIALS SUPPLIERS

Sec. 301. Liability of biomaterials suppliers.
Sec. 302. Procedures for dismissal of civil actions against biomaterials 
          suppliers.
Sec. 303. Definitions.

         TITLE IV--LIMITATIONS ON APPLICABILITY; EFFECTIVE DATE

Sec. 401. Application limited to interstate commerce.
Sec. 402. Effect on other law.
Sec. 403. Federal cause of action precluded.
Sec. 404. Effective date.

SEC. 2. FINDINGS AND PURPOSES.

  (a) Findings.--The Congress finds that--
          (1) the civil justice system, which is designed to 
        safeguard our most cherished rights, to remedy 
        injustices, and to defendP
        our liberty, is increasingly being deployed to abridge 
        our rights, create injustice, and destroy our liberty;
          (2) our Nation is overly litigious, the civil justice 
        system is overcrowded, sluggish, and excessively 
        costly, and the costs of lawsuits, both direct and 
        indirect, are inflicting serious and unnecessary injury 
        on the national economy;
          (3) excessive, unpredictable, and often arbitrary 
        damage awards and unfair allocations of liability have 
        a direct and undesirable effect on interstate commerce 
        by increasing the cost and decreasing the availability 
        of goods and services;
          (4) the rules of law governing product liability 
        actions, damage awards, and allocations of liability 
        have evolved inconsistently within and among the 
        several States, resulting in a complex, contradictory, 
        and uncertain regime that is inequitable to both 
        plaintiffs and defendants and unduly burdens interstate 
        commerce;
          (5) as a result of excessive, unpredictable, and 
        often arbitrary damage awards and unfair allocations of 
        liability, consumers have been adversely affected 
        through the withdrawal of products, producers, 
        services, and service providers from the national 
        market, and from excessive liability costs passed on to 
        them through higher prices;
          (6) excessive, unpredictable, and often arbitrary 
        damage awards and unfair allocations of liability 
        jeopardize the financial well-being of many individuals 
        as well as entire industries, particularly the Nation's 
        small businesses, and adversely affects governments, 
        taxpayers, nonprofit entities and volunteer 
        organizations;
          (7) the excessive costs of the civil justice system 
        undermine the ability of American companies to compete 
        internationally, and serve to decrease the number of 
        jobs and the amount of productive capital in the 
        national economy;
          (8) the unpredictability of damage awards is 
        inequitable to both plaintiffs and defendants and has 
        added considerably to the high cost of liability 
        insurance, making it difficult for producers, 
        consumers, and individuals to protect their liability 
        with any degree of confidence and at a reasonable cost;
          (9) because of the national scope of the problems 
        crated by the defects in the civil justice system, it 
        is not possible for the several States to enact laws 
        that fully and effectively respond to those problems;
          (10) it is the constitutional role of the national 
        government to remove barriers to interstate commerce; 
        and
          (11) there is a need to restore rationality, 
        certainty, and fairness to the civil justice system in 
        order to protect against excessive, arbitrary, and 
        uncertain damage awards and to reduce the volume, 
        costs, and delay of litigation.
  (b) Purposes.--Based upon the powers contained in Article I, 
Section 8, Clause 3 of the United States Constitution, the 
purposes of this Act are to promote the free flow of goods and 
services and to lessen burdens on interstate commerce by--
          (1) establishing certain uniform legal principles of 
        product liability which provide a fair balance among 
        the interests of product users, manufacturers, and 
        product sellers;
          (2) placing reasonable limits on damages over and 
        above the actual damages suffered by a claimant;
          (3) ensuring the fair allocation of liability in 
        civil actions;
          (4) reducing the unacceptable costs and delays of our 
        civil justice system caused by excessive litigation 
        which harm both plaintiffs and defendants; and
          (5) establishing greater fairness, rationality, and 
        predictability in the civil justice system.

  Page 2, strike line 3 and all that follows through line 24, 
on page 4 (and redesignate subsequent sections accordingly).
  Page 11, strike lines 17 through 24 (and redesignate 
subsequent sections accordingly).
  Page 12, strike line 24 and all that follows through line 2 
on page 13 (and redesignate the subsequent section 
accordingly).
  Page 17, strike lines 10 through 12 and insert the following:

    TITLE II--LIMITATION ON SPECULATIVE AND ARBITRARY DAMAGE AWARDS

SEC. 201. TREBLE DAMAGES AS PENALTY IN CIVIL ACTIONS.

  Page 17, line 21, insert ``rights or'' before ``safety''.
  Page 17, beginning in line 25, strike ``for the economic loss 
on which the claimant's action is based'' and insert ``for 
economic loss''.
  Page 18, insert after the period in line 2 the following: 
``This section shall be applied by the court and shall not be 
disclosed to the jury.''.
  Page 18, line 3, strike ``and Preemption''.
  Page 18, strike ``title'' in lines 4 and 6 and insert 
``section''.
  Page 18, beginning in line 7, strike ``in any jurisdiction 
that does not authorize such actions'' and insert after the 
period in line 8 the following: ``This section does not preempt 
or supersede any State or Federal law to the extent that such 
law would further limit the award of punitive damages.''.
  Page 19, after line 19, insert the following new sections 
(and redesignate the subsequent section accordingly):

SEC. 202. FAIR SHARE RULE FOR NONECONOMIC DAMAGE AWARDS.

  (a) Fair Share of Liability Imposed According to Share of 
Fault.--In any product liability or other civil action brought 
in State or Federal court, a defendant shall be liable only for 
the amount of noneconomic damages attributable to such 
defendant in direct proportion to such defendant's share of 
fault or responsibility for the claimant's actual damages, as 
determined by the trier of fact. In all such cases, the 
liability of a defendant for noneconomic damages shall be 
several and not joint.
  (b) Applicability.--Except as provided in section 401, this 
section shall apply to any product liability or other civil 
action brought in any Federal or State court on any theory 
where noneconomic damages are sought. This section does not 
preempt or supersede any State or Federal law to the extent 
that such law would further limit the application of the theory 
of joint liability to any kind of damages.

  Page 19, after line 21, insert the following new paragraph:

          (1) The term ``actual damages'' means damages awarded 
        to pay for economic loss.

  Page 19, line 22, strike ``(1)'' and insert ``(2)''.
  Page 20, line 4, strike ``(2)'' and insert ``(3)''.
  Page 20, line 12, strike ``(3)'' and insert ``(4)''.
  Page 20, line 18, strike ``(4)'' and insert ``(5)''.
  Page 20, after line 20, insert the following new paragraph 
(and redesignate subsequent paragraphs accordingly):

          (6) The term ``noneconomic damages'' means damages 
        other than punitive damages or actual damages.

  Page 20, line 21, strike ``(5)'' and insert ``(7)''.
  Page 21, line 1, strike ``(6)'' and insert ``(8)''.
  Page 30, strike lines 6 and 7, and insert the following:

         TITLE IV--LIMITATIONS ON APPLICABILITY; EFFECTIVE DATE

SEC. 401. APPLICATION LIMITED TO INTERSTATE COMMERCE.

  Titles I, II, and III shall apply only to product liability 
or other civil actions affecting interstate commerce. For 
purposes of the preceding sentence, the term ``interstate 
commerce'' means commerce among the several States or with 
foreign nations, or in any territory of the United States or in 
the District of Columbia, or between any such territory and 
another, or between any such territory and any State or foreign 
nation, or between the District of Columbia and any State or 
territory or foreign nation.
  Redesignate subsequent sections accordingly.
                              ----------                              


12. The Amendment To Be Offered by Representative Cox of California or 
        a Designee, To Be Debatable for Not To Exceed 40 Minutes

    Page 19, after line 19, insert the following new sections 
(and redesignate the subsequent section accordingly):

SEC. 202. LIMITATION ON ADDITIONAL PAYMENTS BEYOND ACTUAL DAMAGES.

    (a) Maximum Award of Noneconomic Damages.--In addition to 
actual damages or punitive damages, or both, a claimant may 
also be awarded noneconomic damages, including damages awarded 
to compensate injured feelings, such as ``pain and suffering'' 
and ``emotional distress'', as described in this section. The 
maximum amount of such damages that may be awarded to a 
claimant shall be $250,000. Such maximum amount shall apply 
regardless of the number of parties against whom the action is 
brought, and regardless of the number of claims or actions 
brought with respect to the injury. An award for future 
noneconomic damages shall not be discounted to present value. 
The jury shall not be informed about the limitation on 
noneconomic damages, but an award for noneconomic damages in 
excess of $250,000 shall be reduced either before the entry of 
judgment or by amendment of the judgment after entry. An award 
of damages for noneconomic losses in excess of $250,000 shall 
be reduced to $250,000 before accounting for any other 
reduction in damages required by law. If separate awards of 
damages for past and future noneconomic damages are rendered 
and the combined award exceeds $250,000, the award of damages 
for future noneconomic losses shall be reduced first.
    (b) Applicability.--Except as provide in section 401, this 
section shall apply to any product liability or other civil 
action brought in any Federal or State court on any theory 
where noneconomic damages are sought. This section does not 
create a cause of action for noneconomic damages. This section 
does not preempt or supersede any State or Federal law to the 
extent that such law would further limit the award of 
noneconomic damages.
                              ----------                              


 13. The Amendment To Be Offered by Representative Dingell of Michigan 
      or a Designee, To Be Debatable for Not to Exceed 10 Minutes

  Page 21, strike line 8 and all that follows through line 5 on 
page 30 and insert the following:

                   TITLE III--BIOMATERIALS SUPPLIERS

SEC. 301. LIABILITY OF BIOMATERIALS SUPPLIERS.

  A biomaterials supplier may, to the extent required and 
permitted by any other applicable law, be liable for harm to a 
claimant caused by a medical device, only if the claimant in a 
product liability action shows by a preponderance of evidence 
that the conduct of the biomaterials supplier was an actual and 
proximate cause of the harm to the claimant and--
          (1) the raw materials or component parts delivered by 
        the biomaterials supplier--
                  (A) did not constitute the product described 
                in the contract between the biomaterials 
                supplier and the person who contracted for 
                delivery of the product; or
                  (B) failed to meet any specifications that 
                were--
                          (i) provided to the biomaterials 
                        supplier and not expressly repudiated 
                        by the biomaterials supplier prior to 
                        acceptance of delivery of the raw 
                        materials or component parts;
                          (ii)(I) provided to the biomaterials 
                        supplier;
                          (II) provided to the manufacturer by 
                        the biomaterials supplier; or
                          (III) contained in a master file that 
                        was submitted by the biomaterials 
                        supplier to the Secretary of Health and 
                        Human Services and that is currently 
                        maintained by the biomaterials supplier 
                        for purposes of premarket approval or 
                        review of medical devices; or
                          (iii)(I) included in submissions for 
                        the purposes of premarket approval or 
                        review by the Secretary of Health and 
                        Human Services under section 510, 513, 
                        515, or 520 of the Federal Food, Drug, 
                        and Cosmetic Act (21 U.S.C. 360, 360c, 
                        360e, or 360j); and
                          (II) have received clearance from the 
                        Secretary of Health and Human Services, 
                        if such specifications were provided by 
                        the manufacturer to the biomaterials 
                        supplier and were not expressly 
                        repudiated by the biomaterials supplier 
                        prior to the acceptance by the raw 
                        materials or component parts; or
          (2) the biomaterials supplier intentionally and 
        wrongfully withheld or misrepresented information that 
        is material and relevant to the harm suffered by the 
        claimant; or
          (3) the biomaterials supplier had actual knowledge of 
        fraudulent or malicious activities in the use of its 
        supplies are relevant to the harm suffered by the 
        claimant.

SEC. 302. PROCEDURES FOR DISMISSAL OF CIVIL ACTIONS AGAINST 
                    BIOMATERIALS SUPPLIERS.

  (a) Motion To Dismiss.--
          (1) General rule.--Any biomaterials supplier who is a 
        defendant in any product liability action involving a 
        medical device which allegedly caused the harm for 
        which the action is brought and who is not the 
        manufacturer or the product seller of such medical 
        device may, at any time during which a motion to 
        dismiss may be filed under applicable law, move to 
        dismiss the action on the grounds that--
                  (A) the claimant has failed to establish that 
                the supplier furnished raw materials or 
                component parts in violation of applicable 
                contractual requirements or specifications 
                agreed to by the biomaterials supplier; or
                  (B) the claimant has failed to comply with 
                the requirements of subsection (b).
          (2) Exception.--The biomaterials supplier may not 
        move to dismiss the action under paragraph (1) if--
                  (A) the biomaterials supplier intentionally 
                and wrongfully withheld or misrepresented 
                information that is material and relevant to 
                the harm suffered by the claimant; or
                  (B) the biomaterials supplier had actual 
                knowledge of fraudulent or malicious activities 
                in the use of its supplies where such 
                activities are relevant to the harm suffered by 
                the claimant.
  (b) Manufacturer of Medical Device Shall Be Named a Party.--
The claimant shall be required to name the manufacturer of the 
medical device to which the biomaterials supplier furnished raw 
materials or component parts as a party to the product 
liability action, unless--
          (1) the manufacturer is subject to service of process 
        solely in a jurisdiction in which the biomaterials 
        supplier is not domiciled or subject to service of 
        process; or
          (2) an action against the manufacturer is barred by 
        applicable law.
  (c) Proceedings on Motion to Dismiss.--The following rules 
shall apply to any proceeding on a motion to dismiss filed 
under this section:
          (1) Affidavits relating to status of defendant.--
                  (A) Defendant affidavit.--A defendant in the 
                action shall support a motion to dismiss 
                described in this section by filing an 
                affidavit demonstrating that the person filing 
                the motion is a biomaterials supplier and that 
                it is neither the manufacturer nor the product 
                seller of the medical device which caused the 
                harm alleged by the claimant.
                  (B) Response to motion to dismiss.--In 
                response to a motion to dismiss described in 
                this section, the claimant may submit an 
                affidavit demonstrating on what basis it 
                asserts that--
                          (i) the defendant who filed the 
                        motion to dismiss is not a biomaterials 
                        supplier with respect to the medical 
                        device which caused the harm alleged by 
                        the claimant;
                          (ii) on what basis it asserts that 
                        the biomaterials supplier furnished raw 
                        materials or component parts in 
                        violation of applicable contractual 
                        requirements or specifications agreed 
                        to by the biomaterials supplier;
                          (iii) the biomaterials supplier 
                        intentionally and wrongfully withheld 
                        or misrepresented information that is 
                        material and relevant to the harm 
                        suffered by the claimant; or
                          (iv) the biomaterials supplier had 
                        actual knowledge of fraudulent or 
                        malicious activities in the use of its 
                        supplies where such activities are 
                        relevant to the harm suffered by the 
                        claimant.
          (2) Effect of motion to dismiss on discovery.--If a 
        defendant files a motion to dismiss under subsection 
        (a) and the affidavits submitted in accordance with 
        this section raise material issues of fact concerning 
        whether--
                  (A) the supplier furnished raw materials or 
                component parts in violation of applicable 
                contractual requirements or specifications 
                agreed to by the biomaterials supplier;
                  (B) the biomaterials supplier intentionally 
                and wrongfully withheld or misrepresented 
                information that is material and relevant to 
                the harm suffered by the claimant; or
                  (C) the biomaterials supplier had actual 
                knowledge of fraudulent or malicious activities 
                in the use of its supplies where such 
                activities are relevant to the harm suffered by 
                the claimant,
        discovery in the action shall be limited solely to such 
        material facts until the motion to dismiss is disposed 
        of by the court.
          (3) Response to motion to dismiss.--The court shall 
        rule on the motion to dismiss solely on the basis of 
        the affidavits filed under this section and on the 
        basis of any evidence developed in the course of 
        discovery under paragraph (2) and submitted to the 
        court in accordance with applicable rules of evidence.
  (d) Attorney Fees.--The court shall require the claimant to 
compensate a biomaterials supplier for reasonable attorney fees 
and costs if--
          (1) the claimant named or joined the biomaterials 
        supplier; and
          (2) the court found the claim against the 
        biomaterials supplier to be without merit and 
        frivolous.

SEC. 303. DEFINITIONS.

  For purposes of this title:
          (1) The term ``biomaterials supplier'' means a person 
        that directly or indirectly supplies, or licenses 
        another person to supply, a component part or raw 
        material for use in the manufacture of a medical 
        device--
                  (A) that is intended by the manufacturer of 
                the device--
                          (i) to be placed into a surgically or 
                        naturally formed or existing cavity of 
                        the body for a period of at least 30 
                        days; or
                          (ii) to remain in contact with bodily 
                        fluids of internal human tissue through 
                        a surgically produced opening for a 
                        period of less than 30 days; and
                  (B) suture materials used in implant 
                procedures.
          (2) Notwithstanding paragraph (1), the term 
        ``biomaterials supplier'' excludes any person, with 
        respect to a medical device which is the subject of a 
        product liability action--
                  (A) who is engaged in the manufacture, 
                preparation, propagation, compounding, or 
                processing (as defined in section 510(a)(1) of 
                the Federal Food, Drug, and Cosmetic Act (21 
                U.S.C. 360(a)(1)) of the medical device, and 
                has registered with the Secretary of Health and 
                Human Services pursuant to section 510 of the 
                Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
                360) and the regulations issued under such 
                section, and has included the medical device on 
                a list of devices filed with the Secretary of 
                Health and Human Services pursuant to section 
                510(j) of such Act (21 U.S.C. 360(j)) and the 
                regulations issued under such section; or
                  (B) who, in the course of a business 
                conducted for that purpose, has sold, 
                distributed, leased, packaged, labeled, or 
                otherwise placed the medical device in the 
                stream of commerce after it was manufactured.
          (3) The term ``harm'' means any physical injury, 
        illness, disease, or death or damage to property caused 
        by a product. The term does not include commercial loss 
        or loss or damage to a product itself.
          (4) The term ``product liability action'' means a 
        civil action brought on any theory for harm caused by a 
        product or product use.
                              ----------                              


14. The Amendment To Be Offered by Representative Gekas of Pennsylvania 
      or a Designee, To Be Debatable for Not To Exceed 30 Minutes

  Revisions to the heading of H.R. 1075:
  Add the words ``and civil'' after the words ``product 
liability'' and before the word ``litigation''.
  Revisions to the Table of Contents:
  Page 2, redesignate title IV as title V and renumber sections 
401, 402, and 403 as sections 501, 502, and 503, respectively, 
and after the words ``SEC. 303. DEFINITIONS.'' add the 
following title:

                 TITLE IV--COLLATERAL SOURCE RULE REFORM

Sec. 401. Findings.
Sec. 402. Applicability and preemption.
Sec. 403. Collateral source payments.
Sec. 404. Definitions.

  Page 30, line 1, redesignate title IV as title V and 
redesignate sections 401, 402, and 403 as sections 501, 502, 
and 503, respectively, and insert on line 1 the following:

                TITLE IV--COLLATERAL SOURCE RULE REFORM

SEC. 401. FINDINGS.

  (1) The practice of not permitting the jury to weigh evidence 
of collateral source benefits in making its award of damages in 
health care liability actions burdens interstate commerce by 
leading to increased costs for health care consumers, decreased 
efficiency for the legal system, and double recovery for 
plaintiffs which, in turn, encourages fraud, abuse, and 
wasteful litigation; and
  (2) there is a need to restore rationality, certainty, and 
fairness to the legal system in order to protect against 
excessive damage awards and reduce the costs and delay of 
litigation.

SEC. 402. APPLICABILITY AND PREEMPTION.

  This title governs any health care liability action brought 
in any State or Federal court and to any health care liability 
claim brought pursuant to an alternative dispute resolution 
process, by any claimant, based on any conduct, event, 
occurrence, relationship or transaction involving, affecting or 
relating to commerce, regardless of the theory of liability on 
which the claim is based, including claims for legal or 
equitable contribution, indemnity, or subrogation. The 
provisions of this title shall preempt State law, with respect 
to both procedural and substantive matters, only to the extent 
that such laws are inconsistent with this title and only to the 
extent that such law prohibits the introduction of collateral 
source evidence or mandates reimbursement from the claimant's 
recovery for the cost of collateral source benefits. The 
provisions of this title shall not preempt any State law that 
imposes greater restrictions on liability or damages than those 
provided herein.

SEC. 403. COLLATERAL SOURCE PAYMENTS.

  In any civil liability action subject to this title, any 
defendant may introduce evidence of collateral source benefits. 
If any defendant elects to introduce such evidence, the 
claimant may introduce evidence of any amount paid or 
contributed or reasonably likely to be paid or contributed in 
the future by or on behalf of the claimant to secure the right 
to such collateral source benefits. No provider of collateral 
source benefits shall recover any amount against the claimant 
or receive any credit against the claimant's recovery or be 
equitably or legally subrogated to the right of the claimant in 
any civil liability action subject to this title. This section 
shall apply whether a civil action is settled or resolved by a 
fact finder.

SEC. 404. DEFINITIONS.

  (a) The term ``claimant'' means any person who asserts a 
health care liability claim or brings a health care liability 
action, including a person who asserts or claims a right to 
legal or equitable contribution, indemnity, or subrogation, 
arising out of a health care liability claim or action, and any 
person on whose behalf such a claim is asserted or such an 
action is brought, whether deceased, incompetent or a minor.
  (b) The term ``economic loss'' has the same meaning as 
defined in section 202(3) of this Act.
  (c) The term ``health care liability action'' means a civil 
action brought in a State or Federal court or pursuant to any 
alternative dispute resolution process, against a health care 
provider, an entity which is obligated to provide or pay for 
health benefits under any health plan (including any person or 
entity acting under a contract or arrangement to provide or 
administer any health benefit), or the manufacturer, 
distributor, supplier, marketer, promoter, or seller of a 
medical product, in which the claimant alleges a claim based 
upon the provision of (or the failure to provide or pay for) 
health care services or the use of a medical product, 
regardless of the theory of liability on which the claim is 
based, or the number of plaintiffs, or defendants or causes of 
action.
  (d) The term ``health care liability claim'' means a demand 
by any person, whether or not pursuant to an alternative 
dispute resolution process, against a health care provider, 
health care organization, or the manufacturer, distributor, 
supplier, marketer, promoter or seller of a medical product, 
including, but not limited to, third-party claims, cross 
claims, counter-claims or contribution claims, which are based 
upon the provision of (or the failure to provide or pay for) 
health care services or the use of a medical product, 
regardless of the theory of liability on which the claim is 
based, or the number of plaintiffs, defendants, or causes of 
action.
  (e) The term ``health care organization'' means any person or 
entity which is obligated to provide or pay for health benefits 
under any health plan, including any person or entity acting 
under a contract or arrangement to provide or administer any 
health benefit.
  (f) The term ``health care provider'' means any person or 
entity required by State or Federal laws or regulations to be 
licensed, registered, or certified to provide health care 
services, and being either so licensed, registered, or 
certified, or exempted from such requirement by other statute 
or regulation.
  (g) The term ``health care services'' means any service 
provided by a health care provider, or by any individual 
working under the supervision of a health care provider, that 
relates to the diagnoses, prevention, or treatment of any human 
disease or impairment, or the assessment of the health of human 
beings.
  (h) The term ``medical product'' means a drug (as defined in 
section 201(g)(1) of the Federal Food, Drug, and Cosmetic Act 
(21 U.S.C. 321(g)(1)) or a medical device as defined in section 
201(h) of the Federal Food, Drug and Cosmetic Act (21 U.S.C. 
321(h)), including any component of raw material used therein, 
but excluding health care services, as defined in subsection 
(g) of this section.
  (i) The term ``noneconomic damages'' means damages for 
physical and emotional pain, suffering, inconvenience, physical 
impairment, mental anguish, disfigurement, loss of enjoyment of 
life, loss of society and companionship, loss of consortium 
(other than loss of domestic service), hedonic damages, injury 
to reputation and all other nonpecuniary losses other than 
punitive damages.
  (j) The term ``punitive damages'' has the same meaning as 
defined in section 202(5) of this Act.
  (k) The term ``State'' has the same meaning as defined in 
section 202(6) of this Act.
                              ----------                              


 15. The Amendment To Be Offered by Representative Schumer of New York 
      or a Designee, To Be Debatable for Not To Exceed 20 Minutes

  Page 31, line 5, insert before the period the following: 
``AND SUNSET'', in line 6, insert ``(a) Effective Date.--'' at 
the beginning of the line, and after line 8 insert the 
following:
  (b) Sunset.--Titles I, II, and III shall expire 5 years after 
the date of the enactment of this Act unless the Secretary of 
Commerce has certified to the Congress not less than 90 days 
before the expiration of such years--
          (1) that insurance rates covering liabilities 
        affected by such titles have declined by not less than 
        10 percent after taking into account changes in the 
        Consumer Price Index, or
          (2) that insurance rates have not declined by at 
        least 10 percent because of extraordinary 
        circumstances, has specifed such extraordinary 
        circumstances, and has explained their impact on such 
        insurance rates.