II 

109TH CONGRESS 

1ST SESSION S. 1788 

To amend section 524(g)(1) of title 11, United States Code, to predicate 

the discharge of debts in bankruptcy by any vermiculite mining company 

meeting certain criteria on the establishment of a health care trust 

fund for certain individuals suffering from an asbestos related disease. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 28, 2005 

Mr. BAUCUS introduced the following bill; which was read twice and referred 

to the Committee on the Judiciary 

A BILL 

To amend section 524(g)(1) of title 11, United States Code, 

to predicate the discharge of debts in bankruptcy by 

any vermiculite mining company meeting certain criteria 

on the establishment of a health care trust fund for 

certain individuals suffering from an asbestos related 

disease. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Libby Health Care 

5 Act’’. 
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1 SEC. 2. EFFECT OF DISCHARGE OF DEBTS IN BANKRUPTCY. 

2 Section 524(g)(1) of title 11, United States Code, is 

3 amended by adding at the end the following: 

4 ‘‘(C)(i) Congress finds that— 

5 ‘‘(I) the vermiculite ore mined and milled 

6 in Libby, Montana, was contaminated by high 

7 levels of asbestos, particularly tremolite asbes8 tos; 

9 ‘‘(II) the vermiculite mining and milling 

10 processes released thousands of pounds of as11 bestos-contaminated dust into the air around 

12 Libby, Montana, every day, exposing mine 

13 workers and Libby residents to high levels of 

14 asbestos over a prolonged period of time; 

15 ‘‘(III) the responsible party has known for 

16 over 50 years that there are severe health risks 

17 associated with prolonged exposure to asbestos, 

18 including higher incidences of asbestos related 

19 disease such as asbestosis, lung cancer, and 

20 mesothelioma; 

21 ‘‘(IV) the responsible party was aware of 

22 accumulating asbestos pollution in Libby, Mon23 tana, but failed to take any corrective action for 

24 decades, and once corrective action was taken, 

25 it was inadequate to protect workers and resi26 dents and asbestos-contaminated vermiculite 
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1 dust continued to be released into the air in 

2 and around Libby, Montana, until the early 

3 1990s when the vermiculite mining and milling 

4 process was finally halted; 

5 ‘‘(V) current and former residents of 

6 Libby, Montana, and former vermiculite mine 

7 workers from the Libby mine suffer from asbes8 tos related diseases at a rate 40 to 60 times the 

9 national average, and they suffer from the rare 

10 and deadly asbestos-caused cancer, mesothe11 lioma, at a rate 100 times the national average; 

12 ‘‘(VI) the State of Montana and the town 

13 of Libby, Montana, face an immediate and se14 vere health care crisis because— 

15 ‘‘(aa) many sick current and former 

16 residents and workers who have been diag17 nosed with asbestos-related exposure or 

18 disease cannot access private health insur19 ance; 

20 ‘‘(bb) the costs to the community and 

21 State government related to providing 

22 health coverage for uninsured sick resi23 dents and former mine workers are cre24 ating significant pressures on the State’s 
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1 medicaid program and threaten the viabil2 ity of other community businesses; 

3 ‘‘(cc) asbestos-related disease can 

4 have a long latency period; and 

5 ‘‘(dd) the only significant responsible 

6 party available to compensate sick resi7 dents and workers has filed for bankruptcy 

8 protection; and 

9 ‘‘(VII) the responsible party should recog10 nize that it has a responsibility to work in part11 nership with the State of Montana, the town of 

12 Libby, Montana, and appropriate health care 

13 organizations to address escalating health care 

14 costs caused by decades of asbestos pollution in 

15 Libby, Montana. 

16 ‘‘(ii) In this subparagraph— 

17 ‘‘(I) the term ‘asbestos related disease or 

18 illness’ means a malignant or non-malignant 

19 respiratory disease or illness related to tremolite 

20 asbestos exposure; 

21 ‘‘(II) the term ‘eligible medical expense’ 

22 means an expense related to services for the di23 agnosis or treatment of an asbestos-related dis24 ease or illness, including expenses incurred for 

25 hospitalization, prescription drugs, outpatient 
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1 services, home oxygen, respiratory therapy, 

2 nursing visits, or diagnostic evaluations; 

3 ‘‘(III) the term ‘responsible party’ means a 

4 corporation— 

5 ‘‘(aa) that has engaged in mining 

6 vermiculite that was contaminated by 

7 tremolite asbestos; 

8 ‘‘(bb) whose officers or directors have 

9 been indicted for knowingly releasing into 

10 the ambient air a hazardous air pollutant, 

11 namely asbestos, and knowingly endan12 gering the residents of Libby, Montana 

13 and the surrounding communities; and 

14 ‘‘(cc) for which the Department of 

15 Justice has intervened in a bankruptcy 

16 proceeding; and 

17 ‘‘(IV) the term ‘Trust Fund’ means the 

18 health care trust fund established pursuant to 

19 clause (iii). 

20 ‘‘(iii) A court may not enter an order con21 firming a plan of reorganization under chapter 11 

22 involving a responsible party or issue an injunction 

23 in connection with such order unless the responsible 

24 party— 
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1 ‘‘(I) has established a health care trust 

2 fund for the benefit of individuals suffering 

3 from an asbestos related disease or illness; and 

4 ‘‘(II) has deposited not less than 

5 $250,000,000 into the Trust Fund. 

6 ‘‘(iv) Notwithstanding any other provision of 

7 law, any payment received by the United States for 

8 recovery of costs associated with the actions to ad9 dress asbestos contamination in Libby, Montana, as 

10 authorized by the Comprehensive Environmental Re11 sponse, Compensation, and Liability Act of 1980 (42 

12 U.S.C. 9601 et seq.), shall be deposited into the 

13 Trust Fund. 

14 ‘‘(v) An individual shall be eligible for medical 

15 benefit payments, not to exceed $500,000, from the 

16 Trust Fund if the individual— 

17 ‘‘(I) has an asbestos related disease or ill18 ness; 

19 ‘‘(II) has an eligible medical expense; and 

20 ‘‘(III)(aa) was a worker at the vermiculite 

21 mining and milling facility in Libby, Montana; 

22 or 
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1 ‘‘(bb) lived, worked, or played in Libby, 

2 Montana for at least 6 consecutive months be3 fore December 31, 2004.’’. 

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