```

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 852 Referral Instructions Senate (RIS)]

109th CONGRESS
  2d Session
                                 S. 852

To create a fair and efficient system to resolve claims of victims for 
   bodily injury caused by asbestos exposure, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             April 19, 2005

  Mr. Specter (for himself, Mr. Leahy, Mr. Hatch, Mrs. Feinstein, Mr. 
  Grassley, Mr. DeWine, Mr. Baucus, and Mr. Voinovich) introduced the 
 following bill; which was read twice and referred to the Committee on 
                             the Judiciary

                             June 16, 2005

                Reported by Mr. Specter, with amendments
  [Omit the part struck through and insert the part printed in italic]

                            February 8, 2006

                               Considered

                            February 9, 2006

                     Committee amendments withdrawn

                           February 14, 2006

   Recommitted to the Committee on the Judiciary pursuant to section 
                 312(f) of the Congressional Budget Act

_______________________________________________________________________

                                 A BILL

 
To create a fair and efficient system to resolve claims of victims for 
   bodily injury caused by asbestos exposure, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Fairness in 
Asbestos Injury Resolution Act of 2005'' or the ``FAIR Act of 2005''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

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

          Subtitle A--Office of Asbestos Disease Compensation

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

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

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

Sec. 131. Amount.
Sec. 132. Medical monitoring.
Sec. 133. Payment.
Sec. 134. Reduction in benefit payments for collateral sources.
Sec. 135. Certain claims not affected by payment of awards.
            TITLE II--ASBESTOS INJURY CLAIMS RESOLUTION FUND

           Subtitle A--Asbestos Defendants Funding Allocation

Sec. 201. Definitions.
Sec. 202. Authority and tiers.
Sec. 203. Subtiers.
Sec. 204. Assessment administration.
Sec. 205. Stepdowns and funding holidays.
                Subtitle B--Asbestos Insurers Commission

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

Sec. 221. Establishment of Asbestos Injury Claims Resolution Fund.
Sec. 222. Management of the Fund.
Sec. 223. Enforcement of payment obligations.
Sec. 224. Interest on underpayment or nonpayment.
Sec. 225. Education, consultation, screening, and monitoring.
                       TITLE III--JUDICIAL REVIEW

Sec. 301. Judicial review of rules and regulations.
Sec. 302. Judicial review of award decisions.
Sec. 303. Judicial review of participants' assessments.
Sec. 304. Other judicial challenges.
Sec. 305. Stays, exclusivity, and constitutional review.
                   TITLE IV--MISCELLANEOUS PROVISIONS

Sec. 401. False information.
Sec. 402. Effect on bankruptcy laws.
Sec. 403. Effect on other laws and existing claims.
Sec. 404. Effect on insurance and reinsurance contracts.
Sec. 405. Annual report of the Administrator and sunset of the Act.
Sec. 406. Rules of construction relating to liability of the United 
                            States Government.
Sec. 407. Rules of construction.
Sec. 408. Violation of environmental health and safety requirements.
Sec. 409. Nondiscrimination of health insurance.
                         TITLE V--ASBESTOS BAN

Sec. 501. Prohibition on asbestos containing products.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) Millions of Americans have been exposed to forms of 
        asbestos that can have devastating health effects.
            (2) Various injuries can be caused by exposure to some 
        forms of asbestos, including pleural disease and some forms of 
        cancer.
            (3) The injuries caused by asbestos can have latency 
        periods of up to 40 years, and even limited exposure to some 
        forms of asbestos may result in injury in some cases.
            (4) Asbestos litigation has had a significant detrimental 
        effect on the country's economy, driving companies into 
        bankruptcy, diverting resources from those who are truly sick, 
        and endangering jobs and pensions.
            (5) The scope of the asbestos litigation crisis cuts across 
        every State and virtually every industry.
            (6) The United States Supreme Court has recognized that 
        Congress must act to create a more rational asbestos claims 
        system. In 1991, a Judicial Conference Ad Hoc Committee on 
        Asbestos Litigation, appointed by Chief Justice William 
        Rehnquist, found that the ``ultimate solution should be 
        legislation recognizing the national proportions of the problem 
        . . . and creating a national asbestos dispute resolution 
        scheme . . .''. The Court found in 1997 in Amchem Products Inc. 
        v. Windsor, 521 U.S. 591, 595 (1997), that ``[t]he argument is 
        sensibly made that a nationwide administrative claims 
        processing regime would provide the most secure, fair, and 
        efficient means of compensating victims of asbestos exposure.'' 
        In 1999, the Court in Ortiz v. Fibreboard Corp., 527 U.S. 819, 
        821 (1999), found that the ``elephantine mass of asbestos cases 
        . . . defies customary judicial administration and calls for 
        national legislation.'' That finding was again recognized in 
        2003 by the Court in Norfolk & Western Railway Co. v. Ayers, 
        123 S. Ct. 1210 (2003).
            (7) This crisis, and its significant effect on the health 
        and welfare of the people of the United States, on interstate 
        and foreign commerce, and on the bankruptcy system, compels 
        Congress to exercise its power to regulate interstate commerce 
        and create this legislative solution in the form of a national 
        asbestos injury claims resolution program to supersede all 
        existing methods to compensate those injured by asbestos, 
        except as specified in this Act.
            (8) This crisis has also imposed a deleterious burden upon 
        the United States bankruptcy courts, which have assumed a heavy 
        burden of administering complicated and protracted bankruptcies 
        with limited personnel.
            (9) This crisis has devastated many communities across the 
        country, but hardest hit has been Libby, Montana, where 
        tremolite asbestos, 1 of the most deadly forms of asbestos, was 
        contained in the vermiculite ore mined from the area and 
        despite ongoing cleanup by the Environmental Protection Agency, 
        many still suffer from the deadly dust.
    (b) Purpose.--The purpose of this Act is to--
            (1) create a privately funded, publicly administered fund 
        to provide the necessary resources for a fair and efficient 
        system to resolve asbestos injury claims that will provide 
        compensation for legitimate present and future claimants of 
        asbestos exposure as provided in this Act;
            (2) provide compensation to those present and future 
        victims based on the severity of their injuries, while 
        establishing a system flexible enough to accommodate 
        individuals whose conditions worsens;
            (3) relieve the Federal and State courts of the burden of 
        the asbestos litigation; and
            (4) increase economic stability by resolving the asbestos 
        litigation crisis that has bankrupted companies with asbestos 
        liability, diverted resources from the truly sick, and 
        endangered jobs and pensions.

SEC. 3. DEFINITIONS.

    In this Act, the following definitions shall apply:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Office of Asbestos Disease Compensation 
        appointed under section 101(b).
            (2) Asbestos.--The term ``asbestos'' includes--
                    (A) chrysotile;
                    (B) amosite;
                    (C) crocidolite;
                    (D) tremolite asbestos;
                    (E) winchite asbestos;
                    (F) richterite asbestos;
                    (G) anthophyllite asbestos;
                    (H) actinolite asbestos;
                    (I) amphibole asbestos;
                    (J) any of the minerals listed under subparagraphs 
                (A) through (I) that has been chemically treated or 
                altered, and any asbestiform variety, type, or 
                component thereof; and
                    (K) asbestos-containing material, such as asbestos-
                containing products, automotive or industrial parts or 
                components, equipment, improvements to real property, 
                and any other material that contains asbestos in any 
                physical or chemical form.
            (3) Asbestos claim.--
                    (A) In general.--The term ``asbestos claim'' means 
                any claim, premised on any theory, allegation, or cause 
                of action for damages or other relief presented in a 
                civil action or bankruptcy proceeding, directly, 
                indirectly, or derivatively arising out of, based on, 
                or related to, in whole or part, the health effects of 
                exposure to asbestos, including loss of consortium, 
                wrongful death, and any derivative claim made by, or on 
                behalf of, any exposed person or any representative, 
                spouse, parent, child, or other relative of any exposed 
                person.
                    (B) Exclusion.--The term does not include--
                            (i) claims alleging damage or injury to 
                        tangible property;
                            (ii) claims for benefits under a workers' 
                        compensation law or veterans' benefits program;
                            (iii) claims arising under any governmental 
                        or private health, welfare, disability, death 
                        or compensation policy, program or plan;
                            (iv) claims arising under any employment 
                        contract or collective bargaining agreement; or
                            (v) claims arising out of medical 
                        malpractice.
            (4) Asbestos claimant.--The term ``asbestos claimant'' 
        means an individual who files a claim under section 113.
            (5) Civil action.--The term ``civil action'' means all 
        suits of a civil nature in State or Federal court, whether 
        cognizable as cases at law or in equity or in admiralty, but 
        does not include an action relating to any workers' 
        compensation law, or a proceeding for benefits under any 
        veterans' benefits program.
            (6) Collateral source compensation.--The term ``collateral 
        source compensation'' means the compensation that the claimant 
        received, or is entitled to receive, from a defendant or an 
        insurer of that defendant, or compensation trust as a result of 
        a final judgment or settlement for an asbestos-related injury 
        that is the subject of a claim filed under section 113.
            (7) Eligible disease or condition.--The term ``eligible 
        disease or condition'' means the extent that an illness meets 
        the medical criteria requirements established under subtitle C 
        of title I.
            (8) Employers' liability act.--The term ``Act of April 22, 
        1908 (45 U.S.C. 51 et seq.), commonly known as the Employer's 
        Liability Act'' shall, for all purposes of this Act, include 
        the Act of June 5, 1920 (46 U.S.C. App. 688), commonly known as 
        the Jones Act, and the related phrase ``operations as a common 
        carrier by railroad'' shall include operations as an employer 
        of seamen.
            (9) Fund.--The term ``Fund'' means the Asbestos Injury 
        Claims Resolution Fund established under section 221.
            (10) Insurance receivership proceeding.--The term 
        ``insurance receivership proceeding'' means any State 
        proceeding with respect to a financially impaired or insolvent 
        insurer or reinsurer including the liquidation, rehabilitation, 
        conservation, supervision, or ancillary receivership of an 
        insurer under State law.
            (11) Law.--The term ``law'' includes all law, judicial or 
        administrative decisions, rules, regulations, or any other 
        principle or action having the effect of law.
            (12) Participant.--
                    (A) In general.--The term ``participant'' means any 
                person subject to the funding requirements of title II, 
                including--
                            (i) any defendant participant subject to 
                        liability for payments under subtitle A of that 
                        title;
                            (ii) any insurer participant subject to a 
                        payment under subtitle B of that title; and
                            (iii) any successor in interest of a 
                        participant.
                    (B) Exception.--
                            (i) In general.--A defendant participant 
                        shall not include any person protected from any 
                        asbestos claim by reason of an injunction 
                        entered in connection with a plan of 
                        reorganization under chapter 11 of title 11, 
                        United States Code, that has been confirmed by 
                        a duly entered order or judgment of a court 
                        that is no longer subject to any appeal or 
                        judicial review, and the substantial 
                        consummation, as such term is defined in 
                        section 1101(2) of title 11, United States 
                        Code, of such plan of reorganization has 
                        occurred.
                            (ii) Applicability.--Clause (i) shall not 
                        apply to a person who may be liable under 
                        subtitle A of title II based on prior asbestos 
                        expenditures related to asbestos claims that 
                        are not covered by an injunction described 
                        under clause (i).
            (13) Person.--The term ``person''--
                    (A) means an individual, trust, firm, joint stock 
                company, partnership, association, insurance company, 
                reinsurance company, or corporation; and
                    (B) does not include the United States, any State 
                or local government, or subdivision thereof, including 
                school districts and any general or special function 
                governmental unit established under State law.
            (14) State.--The term ``State'' means any State of the 
        United States and also includes the District of Columbia, 
        Commonwealth of Puerto Rico, the Northern Mariana Islands, the 
        Virgin Islands, Guam, American Samoa, and any other territory 
        or possession of the United States or any political subdivision 
        of any of the entities under this paragraph.
            (15) Substantially continues.--The term ``substantially 
        continues'' means that the business operations have not been 
        significantly modified by the change in ownership.
            (16) Successor in interest.--The term ``successor in 
        interest'' means any person that acquires assets, and 
        substantially continues the business operations, of a 
        participant. The factors to be considered in determining 
        whether a person is a successor in interest include--
                    (A) retention of the same facilities or location;
                    (B) retention of the same employees;
                    (C) maintaining the same job under the same working 
                conditions;
                    (D) retention of the same supervisory personnel;
                    (E) continuity of assets;
                    (F) production of the same product or offer of the 
                same service;
                    (G) retention of the same name;
                    (H) maintenance of the same customer base;
                    (I) identity of stocks, stockholders, and directors 
                between the asset seller and the purchaser; or
                    (J) whether the successor holds itself out as 
                continuation of previous enterprise, but expressly does 
                not include whether the person actually knew of the 
                liability of the participant under this Act.
            (17) Veterans' benefits program.--The term ``veterans' 
        benefits program'' means any program for benefits in connection 
        with military service administered by the Veterans' 
        Administration under title 38, United States Code.
            (18) Workers' compensation law.--The term ``workers' 
        compensation law''--
                    (A) means a law respecting a program administered 
                by a State or the United States to provide benefits, 
                funded by a responsible employer or its insurance 
                carrier, for occupational diseases or injuries or for 
                disability or death caused by occupational diseases or 
                injuries;
                    (B) includes the Longshore and Harbor Workers' 
                Compensation Act (33 U.S.C. 901 et seq.) and chapter 81 
                of title 5, United States Code; and
                    (C) does not include the Act of April 22, 1908 (45 
                U.S.C. 51 et seq.), commonly known as the Employers' 
                Liability Act, or damages recovered by any employee in 
                a liability action against an employer.

                  TITLE I--ASBESTOS CLAIMS RESOLUTION

          Subtitle A--Office of Asbestos Disease Compensation

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

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

SEC. 102. ADVISORY COMMITTEE ON ASBESTOS DISEASE COMPENSATION.

    (a) Establishment.--
            (1) In general.--Not later than 120 days after the date of 
        enactment of this Act, the Administrator shall establish an 
        Advisory Committee on Asbestos Disease Compensation 
        (hereinafter the ``Advisory Committee'').
            (2) Composition and appointment.--The Advisory Committee 
        shall be composed of 24 members, appointed as follows--
                    (A) The Majority and Minority Leaders of the 
                Senate, the Speaker of the House, and the Minority 
                Leader of the House shall each appoint 4 members. Of 
                the 4--
                            (i) 2 shall be selected to represent the 
                        interests of claimants, at least 1 of whom 
                        shall be selected from among individuals 
                        recommended by recognized national labor 
                        federations; and
                            (ii) 2 shall be selected to represent the 
                        interests of participants, 1 of whom shall be 
                        selected to represent the interests of the 
                        insurer participants and 1 of whom shall be 
                        selected to represent the interests of the 
                        defendant participants.
                    (B) The Administrator shall appoint 8 members, who 
                shall be individuals with qualifications and expertise 
                in occupational or pulmonary medicine, occupational 
                health, workers' compensation programs, financial 
                administration, investment of funds, program auditing, 
                or other relevant fields.
            (3) Qualifications.--All of the members described in 
        paragraph (2) shall have expertise or experience relevant to 
        the asbestos compensation program, including experience or 
        expertise in diagnosing asbestos-related diseases and 
        conditions, assessing asbestos exposure and health risks, 
        filing asbestos claims, administering a compensation or 
        insurance program, or as actuaries, auditors, or investment 
        managers. None of the members described in paragraph (2)(B) 
        shall be individuals who, for each of the 5 years before their 
        appointments, earned more than 15 percent of their income by 
        serving in matters related to asbestos litigation as 
        consultants or expert witnesses.
    (b) Duties.--The Advisory Committee shall advise the Administrator 
on--
            (1) claims filing and claims processing procedures;
            (2) claimant assistance programs;
            (3) audit procedures and programs to ensure the quality and 
        integrity of the compensation program;
            (4) the development of a list of industries, occupations 
        and time periods for which there is a presumption of 
        substantial occupational exposure to asbestos;
            (5) recommended analyses or research that should be 
        conducted to evaluate past claims and to project future claims 
        under the program;
            (6) the annual report required to be submitted to Congress 
        under section 405; and
            (7) such other matters related to the implementation of 
        this Act as the Administrator considers appropriate.
    (c) Operation of the Committee.--
            (1) Each member of the Advisory Committee shall be 
        appointed for a term of 3 years, except that, of the members 
        first appointed--
                    (A) 8 shall be appointed for a term of 1 year;
                    (B) 8 shall be appointed for a term of 2 years; and
                    (C) 8 shall be appointed for a term of 3 years, as 
                determined by the Administrator at the time of 
                appointment.
            (2) Any member appointed to fill a vacancy occurring before 
        the expiration of the term shall be appointed only for the 
        remainder of such term.
            (3) The Administrator shall designate a Chairperson and 
        Vice Chairperson from among members of the Advisory Committee 
        appointed under subsection (a)(2)(B).
            (4) The Advisory Committee shall meet at the call of the 
        Chairperson or the majority of its members, and at a minimum 
        shall meet at least 4 times per year during the first 5 years 
        of the asbestos compensation program, and at least 2 times per 
        year thereafter.
            (5) The Administrator shall provide to the Committee such 
        information as is necessary and appropriate for the Committee 
        to carry out its responsibilities under this section. The 
        Administrator may, upon request of the Advisory Committee, 
        secure directly from any Federal, State, or local department or 
        agency such information as may be necessary and appropriate to 
        enable the Advisory Committee to carry out its duties under 
        this section. Upon request of the Administrator, the head of 
        such department or agency shall furnish such information to the 
        Advisory Committee.
            (6) The Administrator shall provide the Advisory Committee 
        with such administrative support as is reasonably necessary to 
        enable it to perform its functions.
    (d) Expenses.--Members of the Advisory Committee, other than full-
time employees of the United States, while attending meetings of the 
Advisory Committee or while otherwise serving at the request of the 
Administrator, and while serving away from their homes or regular 
places of business, shall be allowed travel and meal expenses, 
including per diem in lieu of subsistence, as authorized by section 
5703 of title 5, United States Code, for individuals in the Government 
serving without pay.

SEC. 103. MEDICAL ADVISORY COMMITTEE.

    (a) In General.--The Administrator shall establish a Medical 
Advisory Committee to provide expert advice regarding medical issues 
arising under the statute.
    (b) Qualifications.--None of the members of the Medical Advisory 
Committee shall be individuals who, for each of the 5 years before 
their appointments, earned more than 15 percent of their income by 
serving in matters related to asbestos litigation as consultants or 
expert witnesses.

SEC. 104. CLAIMANT ASSISTANCE.

    (a) Establishment.--Not later than 180 days after the enactment of 
this Act, the Administrator shall establish a comprehensive asbestos 
claimant assistance program to--
            (1) publicize and provide information to potential 
        claimants about the availability of benefits for eligible 
        claimants under this Act, and the procedures for filing claims 
        and for obtaining assistance in filing claims;
            (2) provide assistance to potential claimants in preparing 
        and submitting claims, including assistance in obtaining the 
        documentation necessary to support a claim;
            (3) respond to inquiries from claimants and potential 
        claimants;
            (4) provide training with respect to the applicable 
        procedures for the preparation and filing of claims to persons 
        who provide assistance or representation to claimants; and
            (5) provide for the establishment of a website where 
        claimants may access all relevant forms and information.
    (b) Resource Centers.--The claimant assistance program shall 
provide for the establishment of resource centers in areas where there 
are determined to be large concentrations of potential claimants. These 
centers shall be located, to the extent feasible, in facilities of the 
Department of Labor or other Federal agencies.
    (c) Contracts.--The claimant assistance program may be carried out 
in part through contracts with labor organizations, community-based 
organizations, and other entities which represent or provide services 
to potential claimants, except that such organizations may not have a 
financial interest in the outcome of claims filed with the Office.
    (d) Legal Assistance.--
            (1) In general.--As part of the program established under 
        subsection (a), the Administrator shall establish a legal 
        assistance program to provide assistance to asbestos claimants 
        concerning legal representation issues.
            (2) List of qualified attorneys.--As part of the program, 
        the Administrator shall maintain a roster of qualified 
        attorneys who have agreed to provide pro bono services to 
        asbestos claimants under rules established by the 
        Administrator. The claimants shall not be required to use the 
        attorneys listed on such roster.
            (3) Notice.--
                    (A) Notice by administrator.--The Administrator 
                shall provide asbestos claimants with notice of, and 
                information relating to--
                            (i) pro bono services for legal assistance 
                        available to those claimants; and
                            (ii) any limitations on attorneys fees for 
                        claims filed under this title.
                    (B) Notice by attorneys.--Before a person becomes a 
                client of an attorney with respect to an asbestos 
                claim, that attorney shall provide notice to that 
                person of pro bono services for legal assistance 
                available for that claim.
    (e) Attorney's Fees.--
            (1) In general.--Notwithstanding any contract, the 
        representative of an individual may not receive, for services 
        rendered in connection with the claim of an individual under 
        the Fund, more than 5 percent of a final award made (whether by 
        the Administrator initially or as a result of administrative 
        review) under the Fund on such claim.
            (2) Penalty.--Any representative of an asbestos claimant 
        who violates this subsection shall be fined not more than the 
        greater of--
                    (A) $5,000; or
                    (B) twice the amount received by the representative 
                for services rendered in connection with each such 
                violation.

SEC. 105. PHYSICIANS PANELS.

    (a) Appointment.--The Administrator shall, in accordance with 
section 3109 of title 5, United States Code, appoint physicians with 
experience and competency in diagnosing asbestos-related diseases to be 
available to serve on Physicians Panels, as necessary to carry out this 
Act.
    (b) Formation of Panels.--
            (1) In general.--The Administrator shall periodically 
        determine--
                    (A) the number of Physicians Panels necessary for 
                the efficient conduct of the medical review process 
                under section 121;
                    (B) the number of Physicians Panels necessary for 
                the efficient conduct of the exceptional medical claims 
                process under section 121; and
                    (C) the particular expertise necessary for each 
                panel.
            (2) Expertise.--Each Physicians Panel shall be composed of 
        members having the particular expertise determined necessary by 
        the Administrator, randomly selected from among the physicians 
        appointed under subsection (a) having such expertise.
            (3) Panel members.--
                    (A) In general.--Except as provided under 
                subparagraph (B), each Physicians Panel shall consist 
                of 3 physicians, 2 of whom shall be designated to 
                participate in each case submitted to the Physicians 
                Panel, and the third of whom shall be consulted in the 
                event of disagreement.
                    (B) Waiver.--The Administrator may waive the 
                provisions of subparagraph (A) and may provide for 
                panels of less than 3 physicians, if the Administrator 
                determines that--
                            (i) there is a shortage of qualified 
                        physicians available for service on panels; and
                            (ii) such shortage will result in 
                        administrative delay in the claims process.
    (c) Qualifications.--To be eligible to serve on a Physicians Panel 
under subsection (a), a person shall be--
            (1) a physician licensed in any State;
            (2) board-certified in pulmonary medicine, occupational 
        medicine, internal medicine, oncology, or pathology; and
            (3) an individual who, for each of the 5 years before and 
        during his or her appointment to a Physicians Panel, has earned 
        not more than 15 percent of his or her income as an employee of 
        a participating defendant or insurer or a law firm representing 
        any party in asbestos litigation or as a consultant or expert 
        witness in matters related to asbestos litigation.
    (d) Duties.--Members of a Physicians Panel shall--
            (1) make such medical determinations as are required to be 
        made by Physicians Panels under section 121; and
            (2) perform such other functions as required under this 
        Act.
    (e) Compensation.--Notwithstanding any limitation otherwise 
established under section 3109 of title 5, United States Code, the 
Administrator shall be authorized to pay members of a Physician Panel 
such compensation as is reasonably necessary to obtain their services.
    (f) Federal Advisory Committee Act.--A Physicians Panel established 
under this section shall not be subject to the Federal Advisory 
Committee Act (5 U.S.C. App. 2).

SEC. 106. PROGRAM STARTUP.

    (a) Interim Regulations.--Not later than 90 days after the date of 
enactment of this Act, the Administrator shall promulgate interim 
regulations and procedures for the processing of claims under title I 
and the operation of the Fund under title II, including procedures for 
the expediting of exigent health claims.
    (b) Interim Personnel.--The Secretary of Labor and the Assistant 
Secretary of Labor for the Employment Standards Administration may make 
available to the Administrator on a temporary basis such personnel and 
other resources as may be necessary to facilitate the expeditious 
startup of the program. The Administrator may in addition contract with 
individuals or entities having relevant experience to assist in the 
expeditious startup of the program. Such relevant experience shall 
include, but not be limited to, experience with the review of workers' 
compensation, occupational disease, or similar claims and with 
financial matters relevant to the operation of the program.
    (c) Exigent Health Claims.--
            (1) In general.--The Administrator shall develop procedures 
        to provide for an expedited process to categorize, evaluate, 
        and pay exigent health claims. Such procedures shall include, 
        pending promulgation of final regulations, adoption of interim 
        regulations as needed for processing of exigent health claims.
            (2) Eligible exigent health claims.--A claim shall qualify 
        for treatment as an exigent health claim if the claimant is 
        living and the claimant provides--
                    (A) a diagnosis of mesothelioma meeting the 
                requirements of section 121(d)(10); or
                    (B) a declaration or affidavit, from a physician 
                who has examined the claimant within 120 days before 
                the date of such declaration or affidavit, that the 
                physician has diagnosed the claimant as being 
                terminally ill from an asbestos-related illness and 
                having a life expectancy of less than 1 year.
            (3) Additional exigent health claims.--The Administrator 
        may, in final regulations promulgated under section 101(c), 
        designate additional categories of claims that qualify as 
        exigent health claims under this subsection.
            (4) Claims facility.--To facilitate the prompt payment of 
        exigent health claims, the Administrator shall contract with a 
        claims facility, which applying the medical criteria of section 
        121, may enter into settlements with claimants. In the absence 
        of an offer of judgment as provided under section 106(f)(2), 
        the claimant may submit a claim to that claims facility. The 
        claims facility shall receive the claimant's submissions and 
        evaluate the claim in accordance with subtitles B and C. The 
        claims facility shall then submit the file to the Administrator 
        for payment in accordance with subtitle D. This subsection 
        shall not apply to exceptional medical claims under section 
        121(f). A claimant may appeal any decision at a claims facility 
        with the Administrator in accordance with section 114.
            (5) Authorization for contracts with claims facilities.--
        The Administrator may enter into contracts with claims 
        facilities for the processing of claims (except for exceptional 
        medical claims) in accordance with this title.
    (d) Extreme Financial Hardship Claims.--The Administrator shall, in 
final regulations promulgated under section 101(c), designate 
categories of claims to be handled on an expedited basis as a result of 
extreme financial hardship.
    (e) Interim Administrator.--Until an Administrator is appointed and 
confirmed under section 101(b), the responsibilities of the 
Administrator under this Act shall be performed by the Assistant 
Secretary of Labor for the Employment Standards Administration, who 
shall have all the authority conferred by this Act on the Administrator 
and who shall be deemed to be the Administrator for purposes of this 
Act. Before final regulations being promulgated relating to claims 
processing, the Interim Administrator may prioritize claims processing, 
without regard to the time requirements prescribed in subtitle B of 
this title, based on severity of illness and likelihood that the 
illness in question was caused by exposure to asbestos.
    (f) Stay of Claims; Return to Tort System.--
            (1) Stay of claims.--Notwithstanding any other provision of 
        this Act, any asbestos claim pending as of the date of 
        enactment of this Act, other than a claim to which section 
        403(d)(2)(A) applies, shall be subject to a stay.
            (2) Exigent health claims.--
                    (A) Procedures for settlement of exigent health 
                claims.--
                            (i) In general.--Any person that has filed 
                        a timely exigent health claim seeking a 
                        judgment or order for monetary damages in any 
                        Federal or State court before or after the date 
                        of enactment of this Act, may immediately seek 
                        an offer of judgment of such claim in 
                        accordance with this subparagraph.
                            (ii) Filing.--
                                    (I) In general.--The claimant shall 
                                file with the Administrator and serve 
                                upon all defendants in the pending 
                                court action an election to pursue an 
                                offer of judgment--
                                            (aa) within 60 days after 
                                        the date of enactment of this 
                                        Act, if the claim was filed in 
                                        a Federal or State court before 
                                        such date of enactment; and
                                            (bb) within 60 days after 
                                        the date of the filing of the 
                                        claim, if the claim is filed in 
                                        a Federal or State court on or 
                                        after the date of enactment of 
                                        this Act.
                                    (II) Stay.--If the claimant fails 
                                to file and serve a timely election 
                                under this clause, the stay under 
                                subparagraph (B) shall remain in 
                                effect.
                            (iii) Information.--A claimant who has 
                        filed a timely election under clause (ii) shall 
                        within 60 days after filing provide to each 
                        defendant and to the Administrator--
                                    (I) the amount received or due to 
                                be received as a result of all 
                                settlements that would qualify as a 
                                collateral source under section 134, 
                                together with copies of all settlement 
                                agreements and related documents 
                                sufficient to show the accuracy of that 
                                amount;
                                    (II) all information that the 
                                claimant would be required to provide 
                                to the Administrator in support of a 
                                claim under sections 115 and 121; and
                                    (III) a certification by the 
                                claimant that the information provided 
                                is true and complete.
                            (iv) Certification.--The certification 
                        provided under clause (iii) shall be subject to 
                        the same penalties for false or misleading 
                        statements that would be applicable with regard 
                        to information provided to the Administrator in 
                        support of a claim.
                            (v) Offer of judgment.--Within 30 days 
                        after service of a complete set of the 
                        information described in clause (iii), any 
                        defendant may file and serve on all parties a 
                        good faith offer of judgment in an aggregate 
                        amount not to exceed the total amount to which 
                        the claimant may be entitled under section 131 
                        after adjustment for collateral sources under 
                        section 134. If the aggregate amount offered by 
                        all defendants exceeds the limitation in this 
                        clause, all offers shall be deemed reduced pro-
                        rata until the aggregate amount equals the 
                        amount provided under section 131.
                            (vi) Acceptance or rejection.--Within 20 
                        days after the service of the last offer of 
                        judgment, the claimant shall either accept or 
                        reject such offers. If the amount of the offer 
                        made by any defendant individually, or by any 
                        defendants jointly, equals or exceeds 100 
                        percent of what the claimant would receive 
                        under the Fund, the claimant shall accept such 
                        offer and release any outstanding asbestos 
                        claims.
                            (vii) Lump sum payment.--Any accepted offer 
                        of judgment shall be payable within 30 days and 
                        in 1 lump sum in order to settle the pending 
                        claim.
                            (viii) Recovery of costs.--Any defendant 
                        whose offer of judgment is accepted and has 
                        settled an asbestos claim under clauses (vi) 
                        and (vii) may recover the cost of such 
                        settlement by deducting from its next and 
                        subsequent contributions to the Fund for the 
                        full amount of the payment made by such 
                        defendant to the exigent health claimant, 
                        unless the Administrator finds, on the basis of 
                        clear and convincing evidence, that--
                                    (I) the claimant did not meet the 
                                requirements of an exigent health 
                                claim; and
                                    (II) the defendant's offer was 
                                collusive or otherwise not in good 
                                faith.
                            (ix) Indemnification.--In any case in which 
                        the Administrator refuses to grant full 
                        indemnification under clause (viii), the 
                        Administrator may provide such partial 
                        indemnification as may be fair and just in the 
                        circumstances. If Administrator denies 
                        indemnification, the defendant may seek 
                        contribution from other non-settling 
                        defendants, as well as reimbursement under the 
                        defendant's applicable insurance policies. If 
                        the Administrator refuses to grant full or 
                        partial indemnification based on collusive 
                        action, the defendant may pursue any available 
                        remedy against the claimant.
                            (x) Refusal to make offer.--If a defendant 
                        refuses to make an offer of judgment, the 
                        claimant may continue to seek a judgment or 
                        order for monetary damages from the court where 
                        the case is currently pending in an amount not 
                        to exceed 150 percent of what the claimant 
                        would receive if the claimant had filed a claim 
                        with the Fund. Such a judgment or order may 
                        also provide an award for claimant's attorneys' 
                        fees and the costs of litigation.
                            (xi) Rejection of offer.--If the claimant 
                        rejects the offer as less than what the 
                        claimant would qualify to receive under section 
                        131, the claimant may immediately pursue the 
                        claim in court where the claimant shall 
                        demonstrate, in addition to all other essential 
                        elements of the claimant's claim against any 
                        defendant, that the claimant meets the 
                        requirements of section 121.
                    (B) Pursual of exigent health claims.--
                            (i) Stay.--If a claimant does not elect to 
                        seek an offer of judgment under subparagraph 
                        (A), the pending claim is stayed for 9 months 
                        after the date of enactment of this Act.
                            (ii) Defendant offer.--If a claimant does 
                        not elect to seek an offer of judgment under 
                        subparagraph (A), the defendant may elect to 
                        make an offer according to the provisions of 
                        this paragraph, except that a claimant shall 
                        not be required to accept that offer. The 
                        claimant shall accept or reject the offer 
                        within 20 days.
                            (iii) Claims facility.--If a claimant does 
                        not elect to seek an offer of judgment under 
                        subparagraph (A), the claimant may seek an 
                        award from the Fund through the claims facility 
                        under section 106 (c)(4).
                            (iv) Continuance of claims.--If, after 9 
                        months after the date of enactment of this Act, 
                        the Administrator cannot certify to Congress 
                        that the Fund is operational and paying exigent 
                        health claims at a reasonable rate, each person 
                        that has filed an exigent health claim before 
                        such date of enactment and stayed under this 
                        paragraph may continue their exigent health 
                        claims in the court where the case was pending 
                        on the date of enactment of this Act. For 
                        exigent claims filed after the date of 
                        enactment of this Act, by claimants who do not 
                        elect to seek an offer of judgment under 
                        subparagraph (A), the pending claim is stayed 
                        for 9 months after the date the claim is filed, 
                        unless during that period the Administrator can 
                        certify to Congress that the Fund is 
                        operational and paying valid claims at a 
                        reasonable rate.
                    (C) Credit of claim and effect of operational 
                fund.--If an asbestos claim is pursued in Federal or 
                State court in accordance with this paragraph, any 
                recovery by the claimant shall be a collateral source 
                compensation for purposes of section 134.
            (3) Pursual of asbestos claims in federal or state court.--
                    (A) In general.--Notwithstanding any other 
                provision of this Act, if, not later than 24 months 
                after the date of enactment of this Act, the 
                Administrator cannot certify to Congress that the Fund 
                is operational and paying all valid claims at a 
                reasonable rate, any person with a non-exigent asbestos 
                claim stayed under this paragraph, except for any 
                person whose claim does not exceed a Level I claim, may 
                pursue that claim in the Federal district court or 
                State court located within--
                            (i) the State of residence of the claimant; 
                        or
                            (ii) the State in which the asbestos 
                        exposure arose.
                    (B) Defendants not found.--If any defendant cannot 
                be found in the State described in clause (i) or (ii) 
                of subparagraph (A), the claim may be pursued in the 
                Federal district court or State court located within 
                any State in which the defendant may be found.
                    (C) Determination of most appropriate forum.--If a 
                person alleges that the asbestos exposure occurred in 
                more than 1 county (or Federal district), the trial 
                court shall determine which State and county (or 
                Federal district) is the most appropriate forum for the 
                claim. If the court determines that another forum would 
                be the most appropriate forum for a claim, the court 
                shall dismiss the claim. Any otherwise applicable 
                statute of limitations shall be tolled beginning on the 
                date the claim was filed and ending on the date the 
                claim is dismissed under this subparagraph.
                    (D) State venue requirements.--Nothing in this 
                paragraph shall preempt or supersede any State's law 
                relating to venue requirements within that State which 
                are more restrictive.
                    (E) Credit of claim and effect of operational or 
                nonoperational fund.--
                            (i) Credit of claim.--If an asbestos claim 
                        is pursued in Federal or State court in 
                        accordance with this paragraph, any recovery by 
                        the claimant shall be a collateral source 
                        compensation for purposes of section 134.
                            (ii) Operational fund.--If the 
                        Administrator subsequently certifies to 
                        Congress that the Fund has become operational 
                        and paying all valid asbestos claims at a 
                        reasonable rate, any claim in a civil action in 
                        Federal or State court that is not actually on 
                        trial before a jury which has been impaneled 
                        and presentation of evidence has commenced, but 
                        before its deliberation, or before a judge and 
                        is at the presentation of evidence, may, at the 
                        option of the claimant, be deemed a reinstated 
                        claim against the Fund and the civil action 
                        before the Federal or State court shall be null 
                        and void.
                            (iii) Nonoperational fund.--Notwithstanding 
                        any other provision of this Act, if the 
                        Administrator subsequently certifies to 
                        Congress that the Fund cannot become 
                        operational and paying all valid asbestos 
                        claims at a reasonable rate, all asbestos 
                        claims that have a stay may be filed or 
                        reinstated.

SEC. 107. AUTHORITY OF THE ADMINISTRATOR.

    The Administrator, on any matter within the jurisdiction of the 
Administrator under this Act, may--
            (1) issue subpoenas for and compel the attendance of 
        witnesses within a radius of 200 miles;
            (2) administer oaths;
            (3) examine witnesses;
            (4) require the production of books, papers, documents, and 
        other evidence; and
            (5) request assistance from other Federal agencies with the 
        performance of the duties of the Administrator under this Act.

          Subtitle B--Asbestos Disease Compensation Procedures

SEC. 111. ESSENTIAL ELEMENTS OF ELIGIBLE CLAIM.

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

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

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

SEC. 113. FILING OF CLAIMS.

    (a) Who May Submit.--
            (1) In general.--Any individual who has suffered from a 
        disease or condition that is believed to meet the requirements 
        established under subtitle C (or the personal representative of 
        the individual, if the individual is deceased or incompetent) 
        may file a claim with the Office for an award with respect to 
        such injury.
            (2) Definition.--In this Act, the term ``personal 
        representative'' shall have the same meaning as that term is 
        defined in section 104.4 of title 28 of the Code of Federal 
        Regulations, as in effect on December 31, 2004.
            (3) Limitation.--A claim may not be filed by any person 
        seeking contribution or indemnity.
    (b) Statute of Limitations.--
            (1) In general.--Except as otherwise provided in this 
        subsection, if an individual fails to file a claim with the 
        Office under this section within 5 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) Exception.--The statute of limitations in paragraph (1) 
        does not apply to the progression of nonmalignant diseases once 
        the initial claim has been filed.
            (3) Effect on pending claims.--
                    (A) In general.--If, on the date of enactment of 
                this Act, an asbestos claimant has any timely filed 
                asbestos claim that is preempted under section 403(e), 
                such claimant shall file a claim under this section 
                within 5 years after such date of enactment, or any 
                claim relating to that injury, and any other asbestos 
                claim related to that injury shall be extinguished, and 
                recovery there shall be prohibited.
                    (B) Special rule.--For purposes of this paragraph, 
                a claim shall not be treated as pending with a trust 
                established under title 11, United States Code, solely 
                because a claimant whose claim was previously 
                compensated by the trust has or alleges--
                            (i) a non-contingent right to the payment 
                        of future installments of a fixed award; or
                            (ii) a contingent right to recover some 
                        additional amount from the trust on the 
                        occurrence of a future event, such as the 
                        reevaluation of the trust's funding adequacy or 
                        projected claims experience.
            (4) Effect of multiple injuries.--
                    (A) In general.--An asbestos claimant who receives 
                an award under this title for an eligible disease or 
                condition, and who subsequently develops another such 
                injury, shall be eligible for additional awards under 
                this title (subject to appropriate setoffs for such 
                prior recovery of any award under this title and from 
                any other collateral source) and the statute of 
                limitations under paragraph (1) shall not begin to run 
                with respect to such subsequent injury until such 
                claimant obtains a medical diagnosis of such other 
                injury or discovers facts that would have led a 
                reasonable person to obtain such a diagnosis.
                    (B) Setoffs.--Except as provided in subparagraph 
                (C), any amounts paid or to be paid for a prior award 
                under this Act shall be deducted as a setoff against 
                amounts payable for the second injury claim.
                    (C) Exception.--Any amounts paid or to be paid for 
                a prior claim for a nonmalignant disease (Levels I 
                through V) filed against the Fund shall not be deducted 
                as a setoff against amounts payable for the second 
                injury claim for a malignant disease (Levels VI through 
                IX), unless the malignancy was diagnosed, or the 
                asbestos claimant had discovered facts that would have 
                led a reasonable person to obtain such a diagnosis, 
                before the date on which the nonmalignancy claim was 
                compensated.
    (c) Required Information.--A claim filed under subsection (a) shall 
be in such form, and contain such information in such detail, as the 
Administrator shall by regulation prescribe. At a minimum, a claim 
shall include--
            (1) the name, social security number, gender, date of 
        birth, and, if applicable, date of death of the claimant;
            (2) information relating to the identity of dependents and 
        beneficiaries of the claimant;
            (3) an employment history sufficient to establish required 
        asbestos exposure, accompanied by social security or other 
        payment records or a signed release permitting access to such 
        records;
            (4) a description of the asbestos exposure of the claimant, 
        including, to the extent known, information on the site, or 
        location of exposure, and duration and intensity of exposure;
            (5) a description of the tobacco product use history of the 
        claimant, including frequency and duration;
            (6) an identification and description of the asbestos-
        related diseases or conditions of the claimant, accompanied by 
        a written report by the claimant's physician with medical 
        diagnoses and x-ray films, and other test results necessary to 
        establish eligibility for an award under this Act;
            (7) a description of any prior or pending civil action or 
        other claim brought by the claimant for asbestos-related injury 
        or any other pulmonary, parenchymal, or pleural injury, 
        including an identification of any recovery of compensation or 
        damages through settlement, judgment, or otherwise; and
            (8) for any claimant who asserts that he or she is a 
        nonsmoker or an ex-smoker, as defined in section 131, for 
        purposes of an award under Malignant Level VI, Malignant Level 
        VII, or Malignant Level VIII, evidence to support the assertion 
        of nonsmoking or ex-smoking, including relevant medical 
        records.
    (d) Date of Filing.--A claim shall be considered to be filed on the 
date that the claimant mails the claim to the Office, as determined by 
postmark, or on the date that the claim is received by the Office, 
whichever is the earliest determinable date.
    (e) Incomplete Claims.--If a claim filed under subsection (a) is 
incomplete, the Administrator shall notify the claimant of the 
information necessary to complete the claim and inform the claimant of 
such services as may be available through the Claimant Assistance 
Program established under section 104 to assist the claimant in 
completing the claim. Any time periods for the processing of the claim 
shall be suspended until such time as the claimant submits the 
information necessary to complete the claim. If such information is not 
received within 1 year after the date of such notification, the claim 
shall be dismissed.

SEC. 114. ELIGIBILITY DETERMINATIONS AND CLAIM AWARDS.

    (a) In General.--
            (1) Review of claims.--The Administrator shall, in 
        accordance with this section, determine whether each claim 
        filed under the Fund or claims facility satisfies the 
        requirements for eligibility for an award under this Act and, 
        if so, the value of the award. In making such determinations, 
        the Administrator shall consider the claim presented by the 
        claimant, the factual and medical evidence submitted by the 
        claimant in support of the claim, the medical determinations of 
        any Physicians Panel to which a claim is referred under section 
        121, and the results of such investigation as the Administrator 
        may deem necessary to determine whether the claim satisfies the 
        criteria for eligibility established by this Act.
            (2) Additional evidence.--The Administrator may request the 
        submission of medical evidence in addition to the minimum 
        requirements of section 113(c) if necessary or appropriate to 
        make a determination of eligibility for an award, in which case 
        the cost of obtaining such additional information or testing 
        shall be borne by the Office.
    (b) Proposed Decisions.--Not later than 90 days after the filing of 
a claim, the Administrator shall provide to the claimant (and the 
claimant's representative) a proposed decision accepting or rejecting 
the claim in whole or in part and specifying the amount of the proposed 
award, if any. The proposed decision shall be in writing, shall contain 
findings of fact and conclusions of law, and shall contain an 
explanation of the procedure for obtaining review of the proposed 
decision.
    (c) Payments if No Timely Proposed Decision.--If the Administrator 
has received a complete claim and has not provided a proposed decision 
to the claimant under subsection (b) within 180 days after the filing 
of the claim, the claim shall be deemed accepted and the claimant shall 
be entitled to payment under section 133(a)(2). If the Administrator 
subsequently rejects the claim the claimant shall receive no further 
payments under section 133. If the Administrator subsequently rejects 
the claim in part, the Administrator shall adjust future payments due 
the claimant under section 133 accordingly. In no event may the 
Administrator recover amounts properly paid under this section from a 
claimant.
    (d) Review of Proposed Decisions.--
            (1) Right to hearing.--
                    (A) In general.--Any claimant not satisfied with a 
                proposed decision of the Administrator under subsection 
                (b) shall be entitled, on written request made within 
                90 days after the date of the issuance of the decision, 
                to a hearing on the claim of that claimant before a 
                representative of the Administrator. At the hearing, 
                the claimant shall be entitled to present oral evidence 
                and written testimony in further support of that claim.
                    (B) Conduct of hearing.--When practicable, the 
                hearing will be set at a time and place convenient for 
                the claimant. In conducting the hearing, the 
                representative of the Administrator shall not be bound 
                by common law or statutory rules of evidence, by 
                technical or formal rules of procedure, or by section 
                554 of title 5, United States Code, except as provided 
                by this Act, but shall conduct the hearing in such 
                manner as to best ascertain the rights of the claimant. 
                For this purpose, the representative shall receive such 
                relevant evidence as the claimant adduces and such 
                other evidence as the representative determines 
                necessary or useful in evaluating the claim.
                    (C) Request for subpoenas.--
                            (i) In general.--A claimant may request a 
                        subpoena but the decision to grant or deny such 
                        a request is within the discretion of the 
                        representative of the Administrator. The 
                        representative may issue subpoenas for the 
                        attendance and testimony of witnesses, and for 
                        the production of books, records, 
                        correspondence, papers, or other relevant 
                        documents. Subpoenas are issued for documents 
                        only if such documents are relevant and cannot 
                        be obtained by other means, and for witnesses 
                        only where oral testimony is the best way to 
                        ascertain the facts.
                            (ii) Request.--A claimant may request a 
                        subpoena only as part of the hearing process. 
                        To request a subpoena, the requester shall--
                                    (I) submit the request in writing 
                                and send it to the representative as 
                                early as possible, but no later than 30 
                                days after the date of the original 
                                hearing request; and
                                    (II) explain why the testimony or 
                                evidence is directly relevant to the 
                                issues at hand, and a subpoena is the 
                                best method or opportunity to obtain 
                                such evidence because there are no 
                                other means by which the documents or 
                                testimony could have been obtained.
                            (iii) Fees and mileage.--Any person 
                        required by such subpoena to attend as a 
                        witness shall be allowed and paid the same fees 
                        and mileage as are paid witnesses in the 
                        district courts of the United States. Such fees 
                        and mileage shall be paid from the Fund.
            (2) Review of written record.--In lieu of a hearing under 
        paragraph (1), any claimant not satisfied with a proposed 
        decision of the Administrator shall have the option, on written 
        request made within 90 days after the date of the issuance of 
        the decision, of obtaining a review of the written record by a 
        representative of the Administrator. If such review is 
        requested, the claimant shall be afforded an opportunity to 
        submit any written evidence or argument which the claimant 
        believes relevant.
    (e) Final Decisions.--
            (1) In general.--If the period of time for requesting 
        review of the proposed decision expires and no request has been 
        filed, or if the claimant waives any objections to the proposed 
        decision, the Administrator shall issue a final decision. If 
        such decision materially differs from the proposed decision, 
        the claimant shall be entitled to review of the decision under 
        subsection (d).
            (2) Time and content.--If the claimant requests review of 
        all or part of the proposed decision the Administrator shall 
        issue a final decision on the claim not later than 180 days 
        after the request for review is received, if the claimant 
        requests a hearing, or not later than 90 days after the request 
        for review is received, if the claimant requests review of the 
        written record. Such decision shall be in writing and contain 
        findings of fact and conclusions of law.
    (f) Representation.--A claimant may authorize an attorney or other 
individual to represent him or her in any proceeding under this Act.

SEC. 115. MEDICAL EVIDENCE AUDITING PROCEDURES.

    (a) In General.--
            (1) Development.--The Administrator shall develop methods 
        for auditing and evaluating the medical evidence submitted as 
        part of a claim. The Administrator may develop additional 
        methods for auditing and evaluating other types of evidence or 
        information received by the Administrator.
            (2) Refusal to consider certain evidence.--
                    (A) In general.--If the Administrator determines 
                that an audit conducted in accordance with the methods 
                developed under paragraph (1) demonstrates that the 
                medical evidence submitted by a specific physician or 
                medical facility is not consistent with prevailing 
                medical practices or the applicable requirements of 
                this Act, any medical evidence from such physician or 
                facility shall be unacceptable for purposes of 
                establishing eligibility for an award under this Act.
                    (B) Notification.--Upon a determination by the 
                Administrator under subparagraph (A), the Administrator 
                shall notify the physician or medical facility involved 
                of the results of the audit. Such physician or facility 
                shall have a right to appeal such determination under 
                procedures issued by the Administrator.
    (b) Review of Certified B-Readers.--
            (1) In general.--At a minimum, the Administrator shall 
        prescribe procedures to randomly assign claims for evaluation 
        by an independent certified B-reader of x-rays submitted in 
        support of a claim, the cost of which shall be borne by the 
        Office.
            (2) Disagreement.--If an independent certified B-reader 
        assigned under paragraph (1) disagrees with the quality grading 
        or ILO level assigned to an x-ray submitted in support of a 
        claim, the Administrator shall require a review of such x-rays 
        by a second independent certified B-reader.
            (3) Effect on claim.--If neither certified B-reader under 
        paragraph (2) agrees with the quality grading and the ILO grade 
        level assigned to an x-ray as part of the claim, the 
        Administrator shall take into account the findings of the 2 
        independent B readers in making the determination on such 
        claim.
            (4) Certified b-readers.--The Administrator shall maintain 
        a list of a minimum of 50 certified B-readers eligible to 
        participate in the independent reviews, chosen from all 
        certified B-readers. When an x-ray is sent for independent 
        review, the Administrator shall choose the certified B-reader 
        at random from that list.
    (c) Smoking Assessment.--
            (1) In general.--
                    (A) Records and documents.--To aid in the 
                assessment of the accuracy of claimant representations 
                as to their smoking status for purposes of determining 
                eligibility and amount of award under Malignant Level 
                VI, Malignant Level VII, or Malignant Level VIII, and 
                exceptional medical claims, the Administrator shall 
                have the authority to obtain relevant records and 
                documents, including--
                            (i) records of past medical treatment and 
                        evaluation;
                            (ii) affidavits of appropriate individuals;
                            (iii) applications for insurance and 
                        supporting materials; and
                            (iv) employer records of medical 
                        examinations.
                    (B) Consent.--The claimant shall provide consent 
                for the Administrator to obtain such records and 
                documents where required.
            (2) Review.--The frequency of review of records and 
        documents submitted under paragraph (1)(A) shall be at the 
        discretion of the Administrator, but shall address at least 5 
        percent of the claimants asserting status as nonsmokers or ex-
        smokers.
            (3) Consent.--The Administrator may require the performance 
        of blood tests or any other appropriate medical test, such as 
        serum cotinine screening, where claimants assert they are 
        nonsmokers or ex-smokers for purposes of an award under 
        Malignant Level VI, Malignant Level VII, or Malignant Level 
        VIII, or as an exceptional medical claim, the cost of which 
        shall be borne by the Office.
            (4) Penalty for false statements.--Any false information 
        submitted under this subsection shall be subject to criminal 
        prosecution or civil penalties as provided under section 1348 
        of title 18, United States Code (as added by this Act) and 
        section 101(c)(2).

                      Subtitle C--Medical Criteria

SEC. 121. MEDICAL CRITERIA REQUIREMENTS.

    (a) Definitions.--In this section, the following definitions shall 
apply:
            (1) Asbestosis determined by pathology.--The term 
        ``asbestosis determined by pathology'' means indications of 
        asbestosis based on the pathological grading system for 
        asbestosis described in the Special Issues of the Archives of 
        Pathology and Laboratory Medicine, ``Asbestos-associated 
        Diseases'', Vol. 106, No. 11, App. 3 (October 8, 1982).
            (2) Bilateral asbestos-related nonmalignant disease.--The 
        term ``bilateral asbestos-related nonmalignant disease'' means 
        a diagnosis of bilateral asbestos-related nonmalignant disease 
        based on--
                    (A) an x-ray reading of 1/0 or higher based on the 
                ILO grade scale;
                    (B) bilateral pleural plaques;
                    (C) bilateral pleural thickening; or
                    (D) bilateral pleural calcification.
            (3) Bilateral pleural disease of b2.--The term ``bilateral 
        pleural disease of B2'' means a chest wall pleural thickening 
        or plaque with a maximum width of at least 5 millimeters and a 
        total length of at least \1/4\ of the projection of the lateral 
        chest wall.
            (4) Certified b-reader.--The term ``certified B-reader'' 
        means an individual who is certified by the National Institute 
        of Occupational Safety and Health and whose certification by 
        the National Institute of Occupational Safety and Health is up 
        to date.
            (5) Diffuse pleural thickening.--The term ``diffuse pleural 
        thickening'' means blunting of either costophrenic angle and 
        bilateral pleural plaque or bilateral pleural thickening.
            (6) DLCO.--The term ``DLCO'' means the single-breath 
        diffusing capacity of the lung (carbon monoxide) technique used 
        to measure the volume of carbon monoxide transferred from the 
        alveoli to blood in the pulmonary capillaries for each unit of 
        driving pressure of the carbon monoxide.
            (7) FEV1.--The term ``FEV1'' means forced expiratory volume 
        (1 second), which is the maximal volume of air expelled in 1 
        second during performance of the spirometric test for forced 
        vital capacity.
            (8) FVC.--The term ``FVC'' means forced vital capacity, 
        which is the maximal volume of air expired with a maximally 
        forced effort from a position of maximal inspiration.
            (9) ILO grade.--The term ``ILO grade'' means the 
        radiological ratings for the presence of lung changes as 
        determined from a chest x-ray, all as established from time to 
        time by the International Labor Organization.
            (10) Lower limits of normal.--The term ``lower limits of 
        normal'' means the fifth percentile of healthy populations as 
        defined in the American Thoracic Society statement on lung 
        function testing (Amer. Rev. Resp. Disease 1991, 144:1202-1218) 
        and any future revision of the same statement.
            (11) Nonsmoker.--The term ``nonsmoker'' means a claimant 
        who--
                    (A) never smoked; or
                    (B) has smoked fewer than 100 cigarettes or the 
                equivalent amount of other tobacco products during the 
                claimant's lifetime.
            (12) PO<INF>2</INF>.--The term ``PO<INF>2</INF>'' means the 
        partial pressure (tension) of oxygen, which measures the amount 
        of dissolved oxygen in the blood.
            (13) Pulmonary function testing.--The term ``pulmonary 
        function testing'' means spirometry testing that is in material 
        compliance with the quality criteria established by the 
        American Thoracic Society and is performed on equipment which 
        is in material compliance with the standards of the American 
        Thoracic Society for technical quality and calibration.
            (14) Substantial occupational exposure to asbestos.--
                    (A) In general.--The term ``substantial 
                occupational exposure'' means employment in an industry 
                and an occupation where for a substantial portion of a 
                normal work year for that occupation, the claimant--
                            (i) handled raw asbestos fibers;
                            (ii) fabricated asbestos-containing 
                        products so that the claimant in the 
                        fabrication process was exposed to raw asbestos 
                        fibers;
                            (iii) altered, repaired, or otherwise 
                        worked with an asbestos-containing product such 
                        that the claimant was exposed on a regular 
                        basis to asbestos fibers; or
                            (iv) worked in close proximity to other 
                        workers engaged in the activities described 
                        under clause (i), (ii), or (iii), such that the 
                        claimant was exposed on a regular basis to 
                        asbestos fibers.
                    (B) Regular basis.--In this paragraph, the term 
                ``on a regular basis'' means on a frequent or recurring 
                basis.
            (15) TLC.--The term ``TLC'' means total lung capacity, 
        which is the total volume of air in the lung after maximal 
        inspiration.
            (16) Weighted occupational exposure.--
                    (A) In general.--The term ``weighted occupational 
                exposure'' means exposure for a period of years 
                calculated according to the exposure weighting formula 
                under subparagraphs (B) through (E).
                    (B) Moderate exposure.--Subject to subparagraph 
                (E), each year that a claimant's primary occupation, 
                during a substantial portion of a normal work year for 
                that occupation, involved working in areas immediate to 
                where asbestos-containing products were being 
                installed, repaired, or removed under circumstances 
                that involved regular airborne emissions of asbestos 
                fibers, shall count as 1 year of substantial 
                occupational exposure.
                    (C) Heavy exposure.--Subject to subparagraph (E), 
                each year that a claimant's primary occupation, during 
                a substantial portion of a normal work year for that 
                occupation, involved the direct installation, repair, 
                or removal of asbestos-containing products such that 
                the person was exposed on a regular basis to asbestos 
                fibers, shall count as 2 years of substantial 
                occupational exposure.
                    (D) Very heavy exposure.--Subject to subparagraph 
                (E), each year that a claimant's primary occupation, 
                during a substantial portion of a normal work year for 
                that occupation, was in primary asbestos manufacturing, 
                a World War II shipyard, or the asbestos insulation 
                trades, such that the person was exposed on a regular 
                basis to asbestos fibers, shall count as 4 years of 
                substantial occupational exposure.
                    (E) Dates of exposure.--Each year of exposure 
                calculated under subparagraphs (B), (C), and (D) that 
                occurred before 1976 shall be counted at its full 
                value. Each year from 1976 to 1986 shall be counted as 
                \1/2\ of its value. Each year after 1986 shall be 
                counted as \1/10\ of its value.
                    (F) Other claims.--Individuals who do not meet the 
                provisions of subparagraphs (A) through (E) and believe 
                their post-1976 or post-1986 exposures exceeded the 
                Occupational Safety and Health Administration standard 
                may submit evidence, documentation, work history, or 
                other information to substantiate noncompliance with 
                the Occupational Safety and Health Administration 
                standard (such as lack of engineering or work practice 
                controls, or protective equipment) such that exposures 
                would be equivalent to exposures before 1976 or 1986, 
                or to documented exposures in similar jobs or 
                occupations where control measures had not been 
                implemented. Claims under this subparagraph shall be 
                evaluated on an individual basis by a Physicians Panel.
    (b) Medical Evidence.--
            (1) Latency.--Unless otherwise specified, all diagnoses of 
        an asbestos-related disease for a level under this section 
        shall be accompanied by--
                    (A) a statement by the physician providing the 
                diagnosis that at least 10 years have elapsed between 
                the date of first exposure to asbestos or asbestos-
                containing products and the diagnosis; or
                    (B) a history of the claimant's exposure that is 
                sufficient to establish a 10-year latency period 
                between the date of first exposure to asbestos or 
                asbestos-containing products and the diagnosis.
            (2) Diagnostic guidelines.--All diagnoses of asbestos-
        related diseases shall be based upon--
                    (A) for disease Levels I through V, in the case of 
                a claimant who was living at the time the claim was 
                filed--
                            (i) a physical examination of the claimant 
                        by the physician providing the diagnosis;
                            (ii) an evaluation of smoking history and 
                        exposure history before making a diagnosis;
                            (iii) an x-ray reading by a certified B-
                        reader; and
                            (iv) pulmonary function testing in the case 
                        of disease Levels III, IV, and V;
                    (B) for disease Levels I through V, in the case of 
                a claimant who was deceased at the time the claim was 
                filed, a report from a physician based upon a review of 
                the claimant's medical records which shall include--
                            (i) pathological evidence of the 
                        nonmalignant asbestos-related disease; or
                            (ii) an x-ray reading by a certified B-
                        reader;
                    (C) for disease Levels VI through IX, in the case 
                of a claimant who was living at the time the claim was 
                filed--
                            (i) a physical examination by the 
                        claimant's physician providing the diagnosis; 
                        or
                            (ii) a diagnosis of such a malignant 
                        asbestos-related disease, as described in this 
                        section, by a board-certified pathologist; and
                    (D) for disease Levels VI through IX, in the case 
                of a claimant who was deceased at the time the claim 
                was filed--
                            (i) a diagnosis of such a malignant 
                        asbestos-related disease, as described in this 
                        section, by a board-certified pathologist; and
                            (ii) a report from a physician based upon a 
                        review of the claimant's medical records.
            (3) Credibility of medical evidence.--To ensure the medical 
        evidence provided in support of a claim is credible and 
        consistent with recognized medical standards, a claimant under 
        this title may be required to submit--
                    (A) x-rays or computerized tomography;
                    (B) detailed results of pulmonary function tests;
                    (C) laboratory tests;
                    (D) tissue samples;
                    (E) results of medical examinations;
                    (F) reviews of other medical evidence; and
                    (G) medical evidence that complies with recognized 
                medical standards regarding equipment, testing methods, 
                and procedure to ensure the reliability of such 
                evidence as may be submitted.
    (c) Exposure Evidence.--
            (1) In general.--To qualify for any disease level, the 
        claimant shall demonstrate--
                    (A) a minimum exposure to asbestos or asbestos-
                containing products;
                    (B) the exposure occurred in the United States, its 
                territories or possessions, or while a United States 
                citizen, while an employee of an entity organized under 
                any Federal or State law regardless of location, or 
                while a United States citizen while serving on any 
                United States flagged or owned ship, provided the 
                exposure results from such employment or service; and
                    (C) any additional asbestos exposure requirement 
                under this section.
            (2) Proof of exposure.--
                    (A) Affidavits.--Exposure to asbestos sufficient to 
                satisfy the exposure requirements for any disease level 
                may be established by an affidavit of--
                            (i) the claimant; or
                            (ii) if the claimant is deceased, a co-
                        worker or a family member, if the affidavit of 
                        the claimant, co-worker, or family member is 
                        found in proceedings under this title to be 
                        reasonably reliable, attesting to the 
                        claimant's exposure; and is credible and is not 
                        contradicted by other evidence.
                    (B) Other proof.--Exposure to asbestos may 
                alternatively be established by invoices, construction 
                or other similar records, or any other reasonably 
                reliable evidence.
            (3) Take-home exposure.--
                    (A) In general.--A claimant may alternatively 
                satisfy the medical criteria requirements of this 
                section where a claim is filed by a person who alleges 
                their exposure to asbestos was the result of living 
                with a person who, if the claim had been filed by that 
                person, would have met the exposure criteria for the 
                given disease level, and the claimant lived with such 
                person for the time period necessary to satisfy the 
                exposure requirement, for the claimed disease level.
                    (B) Review.--Except for claims for disease Level IX 
                (mesothelioma), all claims alleging take-home exposure 
                shall be submitted as an exceptional medical claim 
                under section 121(f) for review by a Physicians Panel.
            (4) Waiver for workers and residents of libby, montana.--
        Because of the unique nature of the asbestos exposure related 
        to the vermiculite mining and milling operations in Libby, 
        Montana, the Administrator shall waive the exposure 
        requirements under this subtitle for individuals who worked at 
        the vermiculite mining and milling facility in Libby, Montana, 
        or lived or worked within a 20-mile radius of Libby, Montana, 
        for at least 12 consecutive months before December 31, 2004. 
        Claimants under this section shall provide such supporting 
        documentation as the Administrator shall require.
            (5) Exposure presumptions.--
                    (A) In general.--The Administrator shall prescribe 
                rules identifying specific industries, occupations 
                within such industries, and time periods in which 
                workers employed in those industries or occupations 
                typically had substantial occupational exposure to 
                asbestos as defined under section 121(a). Until 5 years 
                after the Administrator certifies that the Fund is 
                paying claims at a reasonable rate, the industries, 
                occupations and time periods identified by the 
                Administrator shall at a minimum include those 
                identified in the 2002 Trust Distribution Process of 
                the Manville Personal Injury Settlement Trust as of 
                January 1, 2005, as industries, occupations and time 
                periods in which workers were presumed to have had 
                significant occupational exposure to asbestos. 
                Thereafter, the Administrator may by rule modify or 
                eliminate those exposure presumptions required to be 
                adopted from the Manville Personal Injury Settlement 
                Trust, if there is evidence that demonstrates that the 
                typical exposure for workers in such industries and 
                occupations during such time periods did not constitute 
                substantial occupational exposure in asbestos.
                    (B) Claimants entitled to presumptions.--Any 
                claimant who demonstrates through meaningful and 
                credible evidence that such claimant was employed 
                during relevant time periods in industries or 
                occupations identified under subparagraph (A) shall be 
                entitled to a presumption that the claimant had 
                substantial occupational exposure to asbestos during 
                those time periods. That presumption shall not be 
                conclusive, and the Administrator may find that the 
                claimant does not have substantial occupational 
                exposure if other information demonstrates that the 
                claimant did not in fact have substantial occupational 
                exposure during any part of the relevant time periods.
            (6) Penalty for false statement.--Any false information 
        submitted under this subsection shall be subject to section 
        1348 of title 18, United States Code (as added by this Act).
    (d) Asbestos Disease Levels.--
            (1) Nonmalignant level i.--To receive Level I compensation, 
        a claimant shall provide--
                    (A) a diagnosis of bilateral asbestos-related 
                nonmalignant disease; and
                    (B) evidence of 5 years cumulative occupational 
                exposure to asbestos.
            (2) Nonmalignant level ii.--To receive Level II 
        compensation, a claimant shall provide--
                    (A) a diagnosis of bilateral asbestos-related 
                nonmalignant disease with ILO grade of 1/1 or greater, 
                and showing small irregular opacities of shape or size, 
                either ss, st, or tt, and present in both lower lung 
                zones, or asbestosis determined by pathology, or 
                blunting of either costophrenic angle and bilateral 
                pleural plaque or bilateral pleural thickening of at 
                least grade B2 or greater, or bilateral pleural disease 
                of grade B2 or greater;
                    (B) evidence of TLC less than 80 percent or FVC 
                less than the lower limits of normal, and FEV1/FVC 
                ratio less than 65 percent;
                    (C) evidence of 5 or more weighted years of 
                substantial occupational exposure to asbestos; and
                    (D) supporting medical documentation establishing 
                asbestos exposure as a substantial contributing factor 
                in causing the pulmonary condition in question.
            (3) Nonmalignant level iii.--To receive Level III 
        compensation a claimant shall provide--
                    (A) a diagnosis of bilateral asbestos-related 
                nonmalignant disease with ILO grade of 1/0 or greater 
                and showing small irregular opacities of shape or size, 
                either ss, st, or tt, and present in both lower lung 
                zones, or asbestosis determined by pathology, or 
                diffuse pleural thickening, or bilateral pleural 
                disease of B2 or greater;
                    (B) evidence of TLC less than 80 percent, FVC less 
                than the lower limits of normal and FEV1/FVC ratio 
                greater than or equal to 65 percent, or evidence of a 
                decline in FVC of 20 percent or greater, after allowing 
                for the expected decrease due to aging, and an FEV1/FVC 
                ratio greater than or equal to 65 percent documented 
                with a second spirometry;
                    (C) evidence of 5 or more weighted years of 
                substantial occupational exposure to asbestos; and
                    (D) supporting medical documentation--
                            (i) establishing asbestos exposure as a 
                        substantial contributing factor in causing the 
                        pulmonary condition in question; and
                            (ii) excluding other more likely causes of 
                        that pulmonary condition.
            (4) Nonmalignant level iv.--To receive Level IV 
        compensation a claimant shall provide--
                    (A) diagnosis of bilateral asbestos-related 
                nonmalignant disease with ILO grade of 1/1 or greater 
                and showing small irregular opacities of shape or size, 
                either ss, st, or tt, and present in both lower lung 
                zones, or asbestosis determined by pathology, or 
                diffuse pleural thickening, or bilateral pleural 
                disease of B2 or greater;
                    (B) evidence of TLC less than 60 percent or FVC 
                less than 60 percent, and FEV1/FVC ratio greater than 
                or equal to 65 percent;
                    (C) evidence of 5 or more weighted years of 
                substantial occupational exposure to asbestos before 
                diagnosis; and
                    (D) supporting medical documentation--
                            (i) establishing asbestos exposure as a 
                        substantial contributing factor in causing the 
                        pulmonary condition in question; and
                            (ii) excluding other more likely causes of 
                        that pulmonary condition.
            (5) Nonmalignant level v.--To receive Level V compensation 
        a claimant shall provide--
                    (A) diagnosis of bilateral asbestos-related 
                nonmalignant disease with ILO grade of 1/1 or greater 
                and showing small irregular opacities of shape or size, 
                either ss, st, or tt, and present in both lower lung 
                zones, or asbestosis determined by pathology, or 
                diffuse pleural thickening, or bilateral pleural 
                disease of B2 or greater;
                    (B)(i) evidence of TLC less than 50 percent or FVC 
                less than 50 percent, and FEV1/FVC ratio greater than 
                or equal to 65 percent;
                    (ii) DLCO less than 40 percent of predicted, plus a 
                FEV1/FVC ratio not less than 65 percent; or
                    (iii) PO<INF>2</INF> less than 55 mm/Hg, plus a 
                FEV1/FVC ratio not less than 65 percent;
                    (C) evidence of 5 or more weighted years of 
                substantial occupational exposure to asbestos; and
                    (D) supporting medical documentation--
                            (i) establishing asbestos exposure as a 
                        substantial contributing factor in causing the 
                        pulmonary condition in question; and
                            (ii) excluding other more likely causes of 
                        that pulmonary condition.
            (6) Malignant level vi.--
                    (A) In general.--To receive Level VI compensation a 
                claimant shall provide--
                            (i) a diagnosis of a primary colorectal, 
                        laryngeal, esophageal, pharyngeal, or stomach 
                        cancer on the basis of findings by a board 
                        certified pathologist;
                            (ii) evidence of a bilateral asbestos-
                        related nonmalignant disease;
                            (iii) evidence of 15 or more weighted years 
                        of substantial occupational exposure to 
                        asbestos; and
                            (iv) supporting medical documentation 
                        establishing asbestos exposure as a substantial 
                        contributing factor in causing the cancer in 
                        question.
                    (B) Referral to physicians panel.--All claims filed 
                with respect to Level VI under this paragraph shall be 
                referred to a Physicians Panel for a determination that 
                it is more probable than not that asbestos exposure was 
                a substantial contributing factor in causing the other 
                cancer in question. If the claimant meets the 
                requirements of subparagraph (A), there shall be a 
                presumption of eligibility for the scheduled value of 
                compensation unless there is evidence determined by the 
                Physicians Panel that rebuts that presumption. In 
                making its determination under this subparagraph, the 
                Physicians Panel shall consider the intensity and 
                duration of exposure, smoking history, and the quality 
                of evidence relating to exposure and smoking. Claimants 
                shall bear the burden of producing meaningful and 
                credible evidence of their smoking history as part of 
                their claim submission.
            (7) Malignant level vii.--
                    (A) In general.--To receive Level VII compensation, 
                a claimant shall provide--
                            (i) a diagnosis of a primary lung cancer 
                        disease on the basis of findings by a board 
                        certified pathologist;
                            (ii) evidence of bilateral pleural plaques 
                        or bilateral pleural thickening or bilateral 
                        pleural calcification;
                            (iii) evidence of 12 or more weighted years 
                        of substantial occupational exposure to 
                        asbestos; and
                            (iv) supporting medical documentation 
                        establishing asbestos exposure as a substantial 
                        contributing factor in causing the lung cancer 
                        in question.
                    (B) Physicians panel.--A claimant filing a claim 
                relating to Level VII under this paragraph may request 
                that the claim be referred to a Physicians Panel for a 
                determination of whether the claimant qualifies for the 
                disease category and relevant smoking status. In making 
                its determination under this subparagraph, the 
                Physicians Panel shall consider the intensity and 
                duration of exposure, smoking history, and the quality 
                of evidence relating to exposure and smoking. Claimants 
                shall bear the burden of producing meaningful and 
                credible evidence of their smoking history as part of 
                their claim submission.
            (8) Malignant level viii.--
                    (A) In general.--To receive Level VIII 
                compensation, a claimant shall provide a diagnosis--
                            (i) of a primary lung cancer disease on the 
                        basis of findings by a board certified 
                        pathologist;
                            (ii)(I) of--
                                    (aa) asbestosis based on a chest x-
                                ray of at least 1/0 on the ILO scale 
                                and showing small irregular opacities 
                                of shape or size, either ss, st, or tt, 
                                and present in both lower lung zones; 
                                and
                                    (bb) 10 or more weighted years of 
                                substantial occupational exposure to 
                                asbestos;
                            (II) of--
                                    (aa) asbestosis based on a chest x-
                                ray of at least 1/1 on the ILO scale 
                                and showing small irregular opacities 
                                of shape or size, either ss, st, or tt, 
                                and present in both lower lung zones; 
                                and
                                    (bb) 8 or more weighted years of 
                                substantial occupational exposure to 
                                asbestos;
                            (III) asbestosis determined by pathology 
                        and 10 or more weighted years of substantial 
                        occupational exposure to asbestos; or
                            (IV) asbestosis as determined by CT Scan, 
                        the cost of which shall not be borne by the 
                        Fund. The CT Scan must be interpreted by a 
                        board certified radiologist and confirmed by a 
                        board certified radiologist; and
                            (iii) supporting medical documentation 
                        establishing asbestos exposure as a substantial 
                        contributing factor in causing the lung cancer 
                        in question; and 10 or more weighted years of 
                        substantial occupational exposure to asbestos.
                    (B) Physicians panel.--A claimant filing a claim 
                with respect to Level VIII under this paragraph may 
                request that the claim be referred to a Physicians 
                Panel for a determination of whether the claimant 
                qualifies for the disease category and relevant smoking 
                status. In making its determination under this 
                subparagraph, the Physicians Panel shall consider the 
                intensity and duration of exposure, smoking history, 
                and the quality of evidence relating to exposure and 
                smoking. Claimants shall bear the burden of producing 
                meaningful and credible evidence of their smoking 
                history as part of their claim submission.
            (9) Malignant level ix.--To receive Level IX compensation, 
        a claimant shall provide--
                    (A) a diagnosis of malignant mesothelioma disease 
                on the basis of findings by a board certified 
                pathologist; and
                    (B) credible evidence of identifiable exposure to 
                asbestos resulting from--
                            (i) occupational exposure to asbestos;
                            (ii) exposure to asbestos fibers brought 
                        into the home of the claimant by a worker 
                        occupationally exposed to asbestos;
                            (iii) exposure to asbestos fibers resulting 
                        from living or working in the proximate 
                        vicinity of a factory, shipyard, building 
                        demolition site, or other operation that 
                        regularly released asbestos fibers into the air 
                        due to operations involving asbestos at that 
                        site; or
                            (iv) other identifiable exposure to 
                        asbestos fibers, in which case the claim shall 
                        be reviewed by a Physicians Panel under section 
                        121(f) for a determination of eligibility.
    (e) Institute of Medicine Study.--Not later than April 1, 2006, the 
Institute of Medicine of the National Academy of Sciences shall 
complete a study contracted with the National Institutes of Health of 
the causal link between asbestos exposure and other cancers, including 
colorectal, laryngeal, esophageal, pharyngeal, and stomach cancers, 
except for mesothelioma and lung cancers. The Institute of Medicine 
shall issue a report on its findings on causation, which shall be 
transmitted to Congress, the Administrator, the Advisory Committee on 
Asbestos Disease Compensation or the Medical Advisory Committee, and 
the Physicians Panels. The Institute of Medicine report shall be 
binding on the Administrator and the Physicians Panels for purposes of 
determining whether asbestos exposure is a substantial contributing 
factor under section 121(d)(6)(B).
    (f) Exceptional Medical Claims.--
            (1) In general.--A claimant who does not meet the medical 
        criteria requirements under this section may apply for 
        designation of the claim as an exceptional medical claim.
            (2) Application.--When submitting an application for review 
        of an exceptional medical claim, the claimant shall--
                    (A) state that the claim does not meet the medical 
                criteria requirements under this section; or
                    (B) seek designation as an exceptional medical 
                claim within 60 days after a determination that the 
                claim is ineligible solely for failure to meet the 
                medical criteria requirements under subsection (d).
            (3) Report of physician.--
                    (A) In general.--Any claimant applying for 
                designation of a claim as an exceptional medical claim 
                shall support an application filed under paragraph (1) 
                with a report from a physician meeting the requirements 
                of this section.
                    (B) Contents.--A report filed under subparagraph 
                (A) shall include--
                            (i) a complete review of the claimant's 
                        medical history and current condition;
                            (ii) such additional material by way of 
                        analysis and documentation as shall be 
                        prescribed by rule of the Administrator; and
                            (iii) a detailed explanation as to why the 
                        claim meets the requirements of paragraph 
                        (4)(B).
            (4) Review.--
                    (A) In general.--The Administrator shall refer all 
                applications and supporting documentation submitted 
                under paragraph (2) to a Physicians Panel for review 
                for eligibility as an exceptional medical claim.
                    (B) Standard.--A claim shall be designated as an 
                exceptional medical claim if the claimant, for reasons 
                beyond the control of the claimant, cannot satisfy the 
                requirements under this section, but is able, through 
                comparably reliable evidence that meets the standards 
                under this section, to show that the claimant has an 
                asbestos-related condition that is substantially 
                comparable to that of a medical condition that would 
                satisfy the requirements of a category under this 
                section.
                    (C) Additional information.--A Physicians Panel may 
                request additional reasonable testing to support the 
                claimant's application.
                    (D) CT scan.--A claimant may submit a CT Scan in 
                addition to an x-ray.
            (5) Approval.--
                    (A) In general.--If the Physicians Panel determines 
                that the medical evidence is sufficient to show a 
                comparable asbestos-related condition, it shall issue a 
                certificate of medical eligibility designating the 
                category of asbestos-related injury under this section 
                for which the claimant shall be eligible to seek 
                compensation.
                    (B) Referral.--Upon the issuance of a certificate 
                under subparagraph (A), the Physicians Panel shall 
                submit the claim to the Administrator, who shall give 
                due consideration to the recommendation of the 
                Physicians Panel in determining whether the claimant 
                meets the requirements for compensation under this Act.
            (6) Resubmission.--Any claimant whose application for 
        designation as an exceptional medical claim is rejected may 
        resubmit an application if new evidence becomes available. The 
        application shall identify any prior applications and state the 
        new evidence that forms the basis of the resubmission.
            (7) Rules.--The Administrator shall promulgate rules 
        governing the procedures for seeking designation of a claim as 
        an exceptional medical claim.
            (8) Libby, montana.--
                    (A) In general.--A Libby, Montana, claimant may 
                elect to have the claimant's claims designated as 
                exceptional medical claims and referred to a Physicians 
                Panel for review. In reviewing the medical evidence 
                submitted by a Libby, Montana claimant in support of 
                that claim, the Physicians Panel shall take into 
                consideration the unique and serious nature of asbestos 
                exposure in Libby, Montana, including the nature of the 
                pleural disease related to asbestos exposure in Libby, 
                Montana.
                    (B) Claims.--For all claims for Levels II through 
                IV filed by Libby, Montana claimants, as described 
                under subsection (c)(4), once the Administrator or the 
                Physicians Panel issues a certificate of medical 
                eligibility to a Libby, Montana claimant, and 
                notwithstanding the disease category designated in the 
                certificate or the eligible disease or condition 
                established in accordance with this section, or the 
                value of the award determined in accordance with 
                section 114, the Libby, Montana claimant shall be 
                entitled to an award that is not less than that awarded 
                to claimants who suffer from asbestosis, Level IV. For 
                all malignant claims filed by Libby, Montana claimants, 
                the Libby, Montana claimant shall be entitled to an 
                award that corresponds to the malignant disease 
                category designated by the Administrator or the 
                Physicians Panel.

                           Subtitle D--Awards

SEC. 131. AMOUNT.

    (a) In General.--An asbestos claimant who meets the requirements of 
section 111 shall be entitled to an award in an amount determined by 
reference to the benefit table and the matrices developed under 
subsection (b).
    (b) Benefit Table.--
            (1) In general.--An asbestos claimant with an eligible 
        disease or condition established in accordance with section 121 
        shall be eligible for an award as determined under this 
        subsection. The award for all asbestos claimants with an 
        eligible disease or condition established in accordance with 
        section 121 shall be according to the following schedule:

             Level                          Scheduled Condition or Disease     Scheduled Value
              I                              Asbestosis/Pleural Disease A      Medical Monitoring
              II                             Mixed Disease With Impairment     $25,000
              III                            Asbestosis/Pleural Disease B      $100,000
              IV                             Severe Asbestosis                 $400,000
              V                              Disabling Asbestosis              $850,000
              VI                             Other Cancer                      $200,000
              VII                            Lung Cancer With Pleural Disease  smokers, $300,000;
                                                                               ex-smokers, $725,000;
                                                                               non-smokers, $800,000
              VIII                           Lung Cancer With Asbestosis       smokers, $600,000;
                                                                               ex-smokers, $975,000;
                                                                               non-smokers, $1,100,000
              IX                             Mesothelioma                      $1,100,000
 

            (2) Definitions.--In this section--
                    (A) the term ``nonsmoker'' means a claimant who--
                            (i) never smoked; or
                            (ii) has smoked fewer than 100 cigarettes 
                        or the equivalent of other tobacco products 
                        during the claimant's lifetime; and
                    (B) the term ``ex-smoker'' means a claimant who has 
                not smoked during any portion of the 12-year period 
                preceding the diagnosis of lung cancer.
            (3) Level ix adjustments.--
                    (A) In general.--If the Administrator determines 
                that the impact of all adjustments under this paragraph 
                on the Fund is cost neutral, the Administrator may--
                            (i) increase awards for Level IX claimants 
                        who are less than 51 years of age with 
                        dependent children; and
                            (ii) decrease awards for Level IX claimants 
                        who are at least 65 years of age, but in no 
                        case shall an award for Level IX be less than 
                        $1,000,000.
                    (B) Implementation.--Before making adjustments 
                under this paragraph, the Administrator shall publish 
                in the Federal Register notice of, and a plan for, 
                making such adjustments.
            (4) Special adjustment for fela cases.--
                    (A) In general.--A claimant who would be eligible 
                to bring a claim under the Act of April 22, 1908 (45 
                U.S.C. 51 et seq.), commonly known as the Employers' 
                Liability Act, but for section 403 of this Act, shall 
                be eligible for a special adjustment under this 
                paragraph.
                    (B) Regulations.--
                            (i) In general.--Not later than 90 days 
                        after the date of enactment of this Act, the 
                        Administrator shall promulgate regulations 
                        relating to special adjustments under this 
                        paragraph.
                            (ii) Joint proposal.--Not later than 45 
                        days after the date of enactment of this Act, 
                        representatives of railroad management and 
                        representatives of railroad labor shall submit 
                        to the Administrator a joint proposal for 
                        regulations describing the eligibility for and 
                        amount of special adjustments under this 
                        paragraph. If a joint proposal is submitted, 
                        the Administrator shall promulgate regulations 
                        that reflect the joint proposal.
                            (iii) Absence of joint proposal.--If 
                        railroad management and railroad labor are 
                        unable to agree on a joint proposal within 45 
                        days after the date of enactment of this Act, 
                        the benefits prescribed in subparagraph (E) 
                        shall be the benefits available to claimants, 
                        and the Administrator shall promulgate 
                        regulations containing such benefits.
                            (iv) Review.--The parties participating in 
                        the arbitration may file in the United States 
                        District Court for the District of Columbia a 
                        petition for review of the Administrator's 
                        order. The court shall have jurisdiction to 
                        affirm the order of the Administrator, or to 
                        set it aside, in whole or in part, or it may 
                        remand the proceedings to the Administrator for 
                        such further action as it may direct. On such 
                        review, the findings and order of the 
                        Administrator shall be conclusive on the 
                        parties, except that the order of the 
                        Administrator may be set aside, in whole or in 
                        parts or remanded to the Administrator, for 
                        failure of the Administrator to comply with the 
                        requirements of this section, for failure of 
                        the order to conform, or confine itself, to 
                        matters within the scope of the Administrator's 
                        jurisdiction, or for fraud or corruption.
                    (C) Eligibility.--An individual eligible to file a 
                claim under the Act of April 22, 1908 (45 U.S.C. 51 et 
                seq.), commonly known as the Employers' Liability Act, 
                shall be eligible for a special adjustment under this 
                paragraph if such individual meets the criteria set 
                forth in subparagraph (F).
                    (D) Amount.--
                            (i) In general.--The amount of the special 
                        adjustment shall be based on the type and 
                        severity of asbestos disease, and shall be 110 
                        percent of the average amount an injured 
                        individual with a disease caused by asbestos, 
                        as described in section 121(d) of this Act, 
                        would have received, during the 5-year period 
                        before the enactment of this Act, adjusted for 
                        inflation. This adjustment shall be in addition 
                        to any other award for which the claimant is 
                        eligible under this Act. The amount of the 
                        special adjustment shall be reduced by an 
                        amount reasonably calculated to take into 
                        account all expenses of litigation normally 
                        borne by plaintiffs, including attorney's fees.
                            (ii) Limitation.--The amount under clause 
                        (i) may not exceed the amount the claimant is 
                        eligible to receive before applying the special 
                        adjustment under that clause.
                    (E) Arbitrated benefits.--If railroad management 
                and railroad labor are unable to agree on a joint 
                proposal within 45 days after the date of enactment of 
                this Act, the Administrator shall appoint an arbitrator 
                to determine the benefits under subparagraph (D). The 
                Administrator shall appoint an arbitrator who shall be 
                acceptable to both railroad management and railroad 
                labor. Railroad management and railroad labor shall 
                each designate their representatives to participate in 
                the arbitration. The arbitrator shall submit the 
                benefits levels to the Administrator not later than 30 
                days after appointment and such benefits levels shall 
                be based on information provided by rail labor and rail 
                management. The information submitted to the arbitrator 
                by railroad management and railroad labor shall be 
                considered confidential and shall be disclosed to the 
                other party upon execution of an appropriate 
                confidentiality agreement. Unless the submitting party 
                provides written consent, neither the arbitrator nor 
                either party to the arbitration shall divulge to any 
                third party any information or data, in any form, 
                submitted to the arbitrator under this section. Nor 
                shall either party use such information or data for any 
                purpose other than participation in the arbitration 
                proceeding, and each party shall return to the other 
                any information it has received from the other party as 
                soon the arbitration is concluded. Information 
                submitted to the arbitrator may not be admitted into 
                evidence, nor discovered, in any civil litigation in 
                Federal or State court. The nature of the information 
                submitted to the arbitrator shall be within the sole 
                discretion of the submitting party, and the arbitrator 
                may not require a party to submit any particular 
                information, including information subject to a prior 
                confidentiality agreement.
                    (F) Demonstration of eligibility.--
                            (i) In general.--A claimant under this 
                        paragraph shall be required to demonstrate--
                                    (I) employment of the claimant in 
                                the railroad industry;
                                    (II) exposure of the claimant to 
                                asbestos as part of that employment; 
                                and
                                    (III) the nature and severity of 
                                the asbestos-related injury.
                            (ii) Medical criteria.--In order to be 
                        eligible for a special adjustment a claimant 
                        shall meet the criteria set forth in section 
                        121 that would qualify a claimant for a payment 
                        under Level II or greater.
            (5) Medical monitoring.--An asbestos claimant with 
        asymptomatic exposure, based on the criteria under section 
        121(d)(1), shall only be eligible for medical monitoring 
        reimbursement as provided under section 132.
            (6) Cost-of-living adjustment.--
                    (A) In general.--Beginning January 1, 2007, award 
                amounts under paragraph (1) shall be annually increased 
                by an amount equal to such dollar amount multiplied by 
                the cost-of-living adjustment, rounded to the nearest 
                $1,000 increment.
                    (B) Calculation of cost-of-living adjustment.--For 
                the purposes of subparagraph (A), the cost-of-living 
                adjustment for any calendar year shall be the 
                percentage, if any, by which the consumer price index 
                for the succeeding calendar year exceeds the consumer 
                price index for calendar year 2005.
                    (C) Consumer price index.--
                            (i) In general.--For the purposes of 
                        subparagraph (B), the consumer price index for 
                        any calendar year is the average of the 
                        consumer price index as of the close of the 12-
                        month period ending on August 31 of such 
                        calendar year.
                            (ii) Definition.--For purposes of clause 
                        (i), the term ``consumer price index'' means 
                        the consumer price index published by the 
                        Department of Labor. The consumer price index 
                        series to be used for award escalations shall 
                        include the consumer price index used for all-
                        urban consumers, with an area coverage of the 
                        United States city average, for all items, 
                        based on the 1982-1984 index based period, as 
                        published by the Department of Labor.

SEC. 132. MEDICAL MONITORING.

    (a) Relation to Statute of Limitations.--The filing of a claim 
under this Act that seeks reimbursement for medical monitoring shall 
not be considered as evidence that the claimant has discovered facts 
that would otherwise commence the period applicable for purposes of the 
statute of limitations under section 113(b).
    (b) Costs.--Reimbursable medical monitoring costs shall include the 
costs of a claimant not covered by health insurance for an examination 
by the claimant's physician, x-ray tests, and pulmonary function tests 
every 3 years.
    (c) Regulations.--The Administrator shall promulgate regulations 
that establish--
            (1) the reasonable costs for medical monitoring that is 
        reimbursable; and
            (2) the procedures applicable to asbestos claimants.

SEC. 133. PAYMENT.

    (a) Structured Payments.--
            (1) In general.--An asbestos claimant who is entitled to an 
        award should receive the amount of the award through structured 
        payments from the Fund, made over a period of 3 years, and in 
        no event more than 4 years after the date of final adjudication 
        of the claim.
            (2) Payment period and amount.--There shall be a 
        presumption that any award paid under this subsection shall 
        provide for payment of--
                    (A) 40 percent of the total amount in year 1;
                    (B) 30 percent of the total amount in year 2; and
                    (C) 30 percent of the total amount in year 3.
            (3) Extension of payment period.--
                    (A) In general.--The Administrator shall develop 
                guidelines to provide for the payment period of an 
                award under subsection (a) to be extended to a 4-year 
                period if such action is warranted in order to preserve 
                the overall solvency of the Fund. Such guidelines shall 
                include reference to the number of claims made to the 
                Fund and the awards made and scheduled to be paid from 
                the Fund as provided under section 405.
                    (B) Limitations.--In no event shall less than 50 
                percent of an award be paid in the first 2 years of the 
                payment period under this subsection.
            (4) Accelerated payments.--The Administrator shall develop 
        guidelines to provide for accelerated payments to asbestos 
        claimants who are mesothelioma victims and who are alive on the 
        date on which the Administrator receives notice of the 
        eligibility of the claimant. Such payments shall be credited 
        against the first regular payment under the structured payment 
        plan for the claimant.
            (5) Expedited payments.--The Administrator shall develop 
        guidelines to provide for expedited payments to asbestos 
        claimants in cases of exigent circumstances or extreme hardship 
        caused by asbestos-related injury.
            (6) Annuity.--An asbestos claimant may elect to receive any 
        payments to which that claimant is entitled under this title in 
        the form of an annuity.
    (b) Limitation on Transferability.--A claim filed under this Act 
shall not be assignable or otherwise transferable under this Act.
    (c) Creditors.--An award under this title shall be exempt from all 
claims of creditors and from levy, execution, and attachment or other 
remedy for recovery or collection of a debt, and such exemption may not 
be waived.
    (d) Medicare as Secondary Payer.--No award under this title shall 
be deemed a payment for purposes of section 1862 of the Social Security 
Act (42 U.S.C. 1395y).
    (e) Exempt Property in Asbestos Claimant's Bankruptcy Case.--If an 
asbestos claimant files a petition for relief under section 301 of 
title 11, United States Code, no award granted under this Act shall be 
treated as property of the bankruptcy estate of the asbestos claimant 
in accordance with section 541(b)(6) of title 11, United States Code.

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

    (a) In General.--The amount of an award otherwise available to an 
asbestos claimant under this title shall be reduced by the amount of 
collateral source compensation.
    (b) Exclusions.--In no case shall statutory benefits under workers' 
compensation laws, special adjustments made under section 131(b)(3), 
occupational or total disability benefits under the Railroad Retirement 
Act (45 U.S.C. 201 et seq.), sickness benefits under the Railroad 
Unemployment Insurance Act (45 U.S.C 351 et seq.), and veterans' 
benefits programs be deemed as collateral source compensation for 
purposes of this section.

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

    (a) In General.--The payment of an award under section 106 or 133 
shall not be considered a form of compensation or reimbursement for a 
loss for purposes of imposing liability on any asbestos claimant 
receiving such payment to repay any--
            (1) insurance carrier for insurance payments; or
            (2) person or governmental entity on account of worker's 
        compensation, health care, or disability payments.
    (b) No Effect on Claims.--The payment of an award to an asbestos 
claimant under section 106 or 133 shall not affect any claim of an 
asbestos claimant against--
            (1) an insurance carrier with respect to insurance; or
            (2) against any person or governmental entity with respect 
        to worker's compensation, healthcare, or disability.

            TITLE II--ASBESTOS INJURY CLAIMS RESOLUTION FUND

           Subtitle A--Asbestos Defendants Funding Allocation

SEC. 201. DEFINITIONS.

    In this subtitle, the following definitions shall apply:
            (1) Affiliated group.--The term ``affiliated group''--
                    (A) means a defendant participant that is an 
                ultimate parent and any person whose entire beneficial 
                interest is directly or indirectly owned by that 
                ultimate parent on the date of enactment of this Act; 
                and
                    (B) shall not include any person that is a debtor 
                or any direct or indirect majority-owned subsidiary of 
                a debtor.
            (2) Class action trust.--The term ``class action trust'' 
        means a trust or similar entity established to hold assets for 
        the payment of asbestos claims asserted against a debtor or 
        participating defendant, under a settlement that--
                    (A) is a settlement of class action claims under 
                rule 23 of the Federal Rules of Civil Procedure; and
                    (B) has been approved by a final judgment of a 
                United States district court before the date of 
                enactment of this Act.
            (3) Debtor.--The term ``debtor''--
                    (A) means--
                            (i) a person that is subject to a case 
                        pending under a chapter of title 11, United 
                        States Code, on the date of enactment of this 
                        Act or at any time during the 1-year period 
                        immediately preceding that date, irrespective 
                        of whether the debtor's case under that title 
                        has been dismissed; and
                            (ii) all of the direct or indirect 
                        majority-owned subsidiaries of a person 
                        described under clause (i), regardless of 
                        whether any such majority-owned subsidiary has 
                        a case pending under title 11, United States 
                        Code; and
                    (B) shall not include an entity--
                            (i) subject to chapter 7 of title 11, 
                        United States Code, if a final decree closing 
                        the estate shall have been entered before the 
                        date of enactment of this Act; or
                            (ii) subject to chapter 11 of title 11, 
                        United States Code, if a plan of reorganization 
                        for such entity shall have been confirmed by a 
                        duly entered order or judgment of a court that 
                        is no longer subject to any appeal or judicial 
                        review, and the substantial consummation, as 
                        such term is defined in section 1101(2) of 
                        title 11, United States Code, of such plan of 
                        reorganization has occurred.
            (4) Indemnifiable cost.--The term ``indemnifiable cost'' 
        means a cost, expense, debt, judgment, or settlement incurred 
        with respect to an asbestos claim that, at any time before 
        December 31, 2002, was or could have been subject to 
        indemnification, contribution, surety, or guaranty.
            (5) Indemnitee.--The term ``indemnitee'' means a person 
        against whom any asbestos claim has been asserted before 
        December 31, 2002, who has received from any other person, or 
        on whose behalf a sum has been paid by such other person to any 
        third person, in settlement, judgment, defense, or indemnity in 
        connection with an alleged duty with respect to the defense or 
        indemnification of such person concerning that asbestos claim, 
        other than under a policy of insurance or reinsurance.
            (6) Indemnitor.--The term ``indemnitor'' means a person who 
        has paid under a written agreement at any time before December 
        31, 2002, a sum in settlement, judgment, defense, or indemnity 
        to or on behalf of any person defending against an asbestos 
        claim, in connection with an alleged duty with respect to the 
        defense or indemnification of such person concerning that 
        asbestos claim, except that payments by an insurer or reinsurer 
        under a contract of insurance or reinsurance shall not make the 
        insurer or reinsurer an indemnitor for purposes of this 
        subtitle.
            (7) Prior asbestos expenditures.--The term ``prior asbestos 
        expenditures''--
                    (A) means the gross total amount paid by or on 
                behalf of a person at any time before December 31, 
                2002, in settlement, judgment, defense, or indemnity 
                costs related to all asbestos claims against that 
                person;
                    (B) includes payments made by insurance carriers to 
                or for the benefit of such person or on such person's 
                behalf with respect to such asbestos claims, except as 
                provided in section 204(g);
                    (C) shall not include any payment made by a person 
                in connection with or as a result of changes in 
                insurance reserves required by contract or any activity 
                or dispute related to insurance coverage matters for 
                asbestos-related liabilities; and
                    (D) shall not include any payment made by or on 
                behalf of persons who are or were common carriers by 
                railroad for asbestos claims brought under the Act of 
                April 22, 1908 (45 U.S.C. 51 et seq.), commonly known 
                as the Employers' Liability Act, as a result of 
                operations as a common carrier by railroad, including 
                settlement, judgment, defense, or indemnity costs 
                associated with these claims.
            (8) Trust.--The term ``trust'' means any trust, as 
        described in sections 524(g)(2)(B)(i) or 524(h) of title 11, 
        United States Code, or established in conjunction with an order 
        issued under section 105 of title 11, United States Code, 
        established or formed under the terms of a chapter 11 plan of 
        reorganization, which in whole or in part provides compensation 
        for asbestos claims.
            (9) Ultimate parent.--The term ``ultimate parent'' means a 
        person--
                    (A) that owned, as of December 31, 2002, the entire 
                beneficial interest, directly or indirectly, of at 
                least 1 other person; and
                    (B) whose entire beneficial interest was not owned, 
                on December 31, 2002, directly or indirectly, by any 
                other single person (other than a natural person).

SEC. 202. AUTHORITY AND TIERS.

    (a) Liability for Payments to the Fund.--
            (1) In general.--Defendant participants shall be liable for 
        payments to the Fund in accordance with this section based on 
        tiers and subtiers assigned to defendant participants.
            (2) Aggregate payment obligations level.--The total 
        payments required of all defendant participants over the life 
        of the Fund shall not exceed a sum equal to $90,000,000,000 
        less any bankruptcy trust credits under section 222(e). The 
        Administrator shall have the authority to allocate the payments 
        required of the defendant participants among the tiers as 
        provided in this title.
            (3) Ability to enter reorganization.--Notwithstanding any 
        other provision of this Act, all debtors that, together with 
        all of their direct or indirect majority-owned subsidiaries, 
        have prior asbestos expenditures less than $1,000,000 may 
        proceed with the filing, solicitation, and confirmation of a 
        plan of reorganization that does not comply with the 
        requirements of this Act, including a trust and channeling 
        injunction under section 524(g) of title 11, United States 
        Code. Any asbestos claim made in conjunction with a plan of 
        reorganization allowable under the preceding sentence shall be 
        subject to section 403(d) of this Act.
    (b) Tier I.--Tier I shall include all debtors that, together with 
all of their direct or indirect majority-owned subsidiaries, have prior 
asbestos expenditures greater than $1,000,000.
    (c) Treatment of Tier I Business Entities in Bankruptcy.--
            (1) Definition.--
                    (A) In general.--In this subsection, the term 
                ``bankrupt business entity'' means a person that is not 
                a natural person that--
                            (i) filed a petition for relief under 
                        chapter 11, of title 11, United States Code, 
                        before January 1, 2003;
                            (ii) has not substantially consummated, as 
                        such term is defined under section 1101(2) of 
                        title 11, United States Code, a plan of 
                        reorganization as of the date of enactment of 
                        this Act; and
                            (iii) the bankruptcy court presiding over 
                        the business entity's case determines, after 
                        notice and a hearing upon motion filed by the 
                        entity within 30 days after the date of 
                        enactment of this Act, that asbestos liability 
                        was not the sole or precipitating cause of the 
                        entity's chapter 11 filing.
                    (B) Motion and related matters.--A motion under 
                subparagraph (A)(iii) shall be supported by--
                            (i) an affidavit or declaration of the 
                        chief executive officer, chief financial 
                        officer, or chief legal officer of the business 
                        entity; and
                            (ii) copies of the entity's public 
                        statements and securities filings made in 
                        connection with the entity's filing for chapter 
                        11 protection.
                Notice of such motion shall be as directed by the 
                bankruptcy court, and the hearing shall be limited to 
                consideration of the question of whether or not 
                asbestos liability was the sole or precipitating cause 
                of the entity's chapter 11 filing. The bankruptcy court 
                shall hold a hearing and make its determination with 
                respect to the motion within 60 days after the date the 
                motion is filed. In making its determination, the 
                bankruptcy court shall take into account the 
                affidavits, public statements, and securities filings, 
                and other information, if any, submitted by the entity 
                and all other facts and circumstances presented by an 
                objecting party. Any review of this determination shall 
                be an expedited appeal and limited to whether the 
                decision was against the weight of the evidence. Any 
                appeal of a determination shall be an expedited review 
                to the United States Circuit Court of Appeals for the 
                circuit in which the bankruptcy is filed.
            (2) Proceeding with reorganization plan.--A bankrupt 
        business entity may proceed with the filing, solicitation, 
        confirmation, and consummation of a plan of reorganization that 
        does not comply with the requirements of this Act, including a 
        trust and channeling injunction described in section 524(g) of 
        title 11, United States Code, notwithstanding any other 
        provisions of this Act, if the bankruptcy court makes a 
        favorable determination under paragraph (1)(B), unless the 
        bankruptcy court's determination is overruled on appeal and all 
        appeals are final. Such a bankrupt business entity may continue 
        to so proceed, if--
                    (A) on request of a party in interest or on a 
                motion of the court, and after a notice and a hearing, 
                the bankruptcy court presiding over the chapter 11 case 
                of the bankrupt business entity determines that--
                            (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 determination required under paragraph (2), or if an order 
        confirming the plan is not entered within 9 months after the 
        date of enactment of this Act or such longer period of time 
        approved by the bankruptcy court for cause shown, the 
        provisions of this Act shall apply to the bankrupt business 
        entity notwithstanding the certification. Any timely appeal 
        under title 11, United States Code, from a confirmation order 
        entered during the applicable time period shall automatically 
        extend the time during which this Act is inapplicable to the 
        bankrupt business entity, until the appeal is fully and finally 
        resolved.
            (4) Offsets.--
                    (A) Payments by insurers.--To the extent that a 
                bankrupt business entity or debtor successfully 
                confirms a plan of reorganization, including a trust, 
                and channeling injunction that involves payments by 
                insurers who are otherwise subject to this Act as 
                described under section 524(g) of title 11, United 
                States Code, an insurer who makes payments to the trust 
                shall obtain a dollar-for-dollar reduction in the 
                amount otherwise payable by that insurer under this Act 
                to the Fund.
                    (B) Contributions to fund.--Any cash payments by a 
                bankrupt business entity, if any, to a trust described 
                under section 524(g) of title 11, United States Code, 
                may be counted as a contribution to the Fund.
    (d) Tiers II Through VI.--Except as provided in section 204 and 
subsection (b) of this section, persons or affiliated groups are 
included in Tier II, III, IV, V, or VI, according to the prior asbestos 
expenditures paid by such persons or affiliated groups as follows:
            (1) Tier II: $75,000,000 or greater.
            (2) Tier III: $50,000,000 or greater, but less than 
        $75,000,000.
            (3) Tier IV: $10,000,000 or greater, but less than 
        $50,000,000.
            (4) Tier V: $5,000,000 or greater, but less than 
        $10,000,000.
            (5) Tier VI: $1,000,000 or greater, but less than 
        $5,000,000.
    (e) Tier Placement and Costs.--
            (1) Permanent tier placement.--After a defendant 
        participant or affiliated group is assigned to a tier and 
        subtier under section 204(i)(6), the participant or affiliated 
        group shall remain in that tier and subtier throughout the life 
        of the Fund, regardless of subsequent events, including--
                    (A) the filing of a petition under a chapter of 
                title 11, United States Code;
                    (B) a discharge of debt in bankruptcy;
                    (C) the confirmation of a plan of reorganization; 
                or
                    (D) the sale or transfer of assets to any other 
                person or affiliated group, unless the Administrator 
                finds that the information submitted by the participant 
                or affiliated group to support its inclusion in that 
                tier was inaccurate.
            (2) Costs.--Payments to the Fund by all persons that are 
        the subject of a case under a chapter of title 11, United 
        States Code, after the date of enactment of this Act--
                    (A) shall constitute costs and expenses of 
                administration of the case under section 503 of title 
                11, United States Code, and shall be payable in 
                accordance with the payment provisions under this 
                subtitle notwithstanding the pendency of the case under 
                that title 11;
                    (B) shall not be stayed or affected as to 
                enforcement or collection by any stay or injunction 
                power of any court; and
                    (C) shall not be impaired or discharged in any 
                current or future case under title 11, United States 
                Code.
    (f) Superseding Provisions.--
            (1) In general.--All of the following shall be superseded 
        in their entireties by this Act:
                    (A) The treatment of any asbestos claim in any plan 
                of reorganization with respect to any debtor included 
                in Tier I.
                    (B) Any asbestos claim against any debtor included 
                in Tier I.
                    (C) Any agreement, understanding, or undertaking by 
                any such debtor or any third party with respect to the 
                treatment of any asbestos claim filed in a debtor's 
                bankruptcy case or with respect to a debtor before the 
                date of enactment of this Act, whenever such debtor's 
                case is either still pending, if such case is pending 
                under a chapter other than chapter 11 of title 11, 
                United States Code, or subject to confirmation or 
                substantial consummation of a plan of reorganization 
                under chapter 11 of title 11, United States Code.
            (2) Prior agreements of no effect.--Notwithstanding section 
        403(c)(3), any plan of reorganization, agreement, 
        understanding, or undertaking by any debtor (including any pre-
        petition agreement, understanding, or undertaking that requires 
        future performance) or any third party under paragraph (1), and 
        any agreement, understanding, or undertaking entered into in 
        anticipation, contemplation, or furtherance of a plan of 
        reorganization, to the extent it relates to any asbestos claim, 
        shall be of no force or effect, and no person shall have any 
        right or claim with respect to any such agreement, 
        understanding, or undertaking.

SEC. 203. SUBTIERS.

    (a) In General.--
            (1) Subtier liability.--Except as otherwise provided under 
        subsections (b), (d), and (l) of section 204, persons or 
        affiliated groups shall be included within Tiers I through VII 
        and shall pay amounts to the Fund in accordance with this 
        section.
            (2) Revenues.--
                    (A) In general.--For purposes of this section, 
                revenues shall be determined in accordance with 
                generally accepted accounting principles, consistently 
                applied, using the amount reported as revenues in the 
                annual report filed with the Securities and Exchange 
                Commission in accordance with the Securities Exchange 
                Act of 1934 (15 U.S.C. 78a et seq.) for the most recent 
                fiscal year ending on or before December 31, 2002. If 
                the defendant participant or affiliated group does not 
                file reports with the Securities and Exchange 
                Commission, revenues shall be the amount that the 
                defendant participant or affiliated group would have 
                reported as revenues under the rules of the Securities 
                and Exchange Commission in the event that it had been 
                required to file.
                    (B) Insurance premiums.--Any portion of revenues of 
                a defendant participant that is derived from insurance 
                premiums shall not be used to calculate the payment 
                obligation of that defendant participant under this 
                subtitle.
                    (C) Debtors.--Each debtor's revenues shall include 
                the revenues of the debtor and all of the direct or 
                indirect majority-owned subsidiaries of that debtor, 
                except that the pro forma revenues of a person that is 
                included in Subtier 2 of Tier I shall not be included 
                in calculating the revenues of any debtor that is a 
                direct or indirect majority owner of such Subtier 2 
                person. If a debtor or affiliated group includes a 
                person in respect of whose liabilities for asbestos 
                claims a class action trust has been established, there 
                shall be excluded from the 2002 revenues of such debtor 
                or affiliated group--
                            (i) all revenues of the person in respect 
                        of whose liabilities for asbestos claims the 
                        class action trust was established; and
                            (ii) all revenues of the debtor and 
                        affiliated group attributable to the historical 
                        business operations or assets of such person, 
                        regardless of whether such business operations 
                        or assets were owned or conducted during the 
                        year 2002 by such person or by any other person 
                        included within such debtor and affiliated 
                        group.
    (b) Tier I Subtiers.--
            (1) In general.--Each debtor in Tier I shall be included in 
        subtiers and shall pay amounts to the Fund as provided under 
        this section.
            (2) Subtier 1.--
                    (A) In general.--All persons that are debtors with 
                prior asbestos expenditures of $1,000,000 or greater, 
                shall be included in Subtier 1.
                    (B) Payment.--Each debtor included in Subtier 1 
                shall pay on an annual basis 1.67024 percent of the 
                debtor's 2002 revenues.
                    (C) Other assets.--The Administrator, at the sole 
                discretion of the Administrator, may allow a Subtier 1 
                debtor to satisfy its funding obligation under this 
                paragraph with assets other than cash if the 
                Administrator determines that requiring an all-cash 
                payment of the debtor's funding obligation would render 
                the debtor's reorganization infeasible.
                    (D) Liability.--
                            (i) In general.--If a person who is subject 
                        to a case pending under a chapter of title 11, 
                        United States Code, as defined in section 
                        201(3)(A)(i), does not pay when due any payment 
                        obligation for the debtor, the Administrator 
                        shall have the right to seek payment of all or 
                        any portion of the entire amount due (as well 
                        as any other amount for which the debtor may be 
                        liable under sections 223 and 224) from any of 
                        the direct or indirect majority-owned 
                        subsidiaries under section 201(3)(A)(ii).
                            (ii) Cause of action.--Notwithstanding 
                        section 221(e), this Act shall not preclude 
                        actions among persons within a debtor under 
                        section 201(3)(A) (i) and (ii) with respect to 
                        the payment obligations under this Act.
                            (iii) Right of contribution.--
                                    (I) In general.--Notwithstanding 
                                any other provision of this Act, if a 
                                direct or indirect majority-owned 
                                foreign subsidiary of a debtor 
                                participant (with such relationship to 
                                the debtor participant as determined on 
                                the date of enactment of this Act) is 
                                or becomes subject to any foreign 
                                insolvency proceedings, and such 
                                foreign direct or indirect-majority 
                                owned subsidiary is liquidated in 
                                connection with such foreign insolvency 
                                proceedings (or if the debtor 
                                participant's interest in such foreign 
                                subsidiary is otherwise canceled or 
                                terminated in connection with such 
                                foreign insolvency proceedings), the 
                                debtor participant shall have a claim 
                                against such foreign subsidiary or the 
                                estate of such foreign subsidiary in an 
                                amount equal to the greater of--
                                            (aa) the estimated amount 
                                        of all current and future 
                                        asbestos liabilities against 
                                        such foreign subsidiary; or
                                            (bb) the foreign 
                                        subsidiary's allocable share of 
                                        the debtor participant's 
                                        funding obligations to the Fund 
                                        as determined by such foreign 
                                        subsidiary's allocable share of 
                                        the debtor participant's 2002 
                                        gross revenue.
                                    (II) Determination of claim 
                                amount.--The claim amount under 
                                subclause (I) (aa) or (bb) shall be 
                                determined by a court of competent 
                                jurisdiction in the United States.
                                    (III) Effect on payment 
                                obligation.--The right to, or recovery 
                                under, any such claim shall not reduce, 
                                limit, delay, or otherwise affect the 
                                debtor participant's payment 
                                obligations under this Act.
                            (iv) Maximum annual payment obligation.--
                        Subject to any payments under sections 204(l) 
                        and 222(d), and paragraphs (3), (4), and (5) of 
                        this subsection, the annual payment obligation 
                        by a debtor under subparagraph (B) of this 
                        paragraph shall not exceed $80,000,000.
            (3) Subtier 2.--
                    (A) In general.--Notwithstanding paragraph (2), all 
                persons that are debtors that have no material 
                continuing business operations but hold cash or other 
                assets that have been allocated or earmarked for the 
                settlement of asbestos claims shall be included in 
                Subtier 2.
                    (B) Assignment of assets.--Not later than 90 days 
                after the date of enactment of this Act, each person 
                included in Subtier 2 shall assign all of its assets to 
                the Fund.
            (4) Subtier 3.--
                    (A) In general.--Notwithstanding paragraph (2), all 
                persons that are debtors other than those included in 
                Subtier 2, which have no material continuing business 
                operations and no cash or other assets allocated or 
                earmarked for the settlement of any asbestos claim, 
                shall be included in Subtier 3.
                    (B) Assignment of unencumbered assets.--Not later 
                than 90 days after the date of enactment of this Act, 
                each person included in Subtier 3 shall contribute an 
                amount equal to 50 percent of its total unencumbered 
                assets.
                    (C) Calculation of unencumbered assets.--
                Unencumbered assets shall be calculated as the Subtier 
                3 person's total assets, excluding insurance-related 
                assets, less--
                            (i) all allowable administrative expenses;
                            (ii) allowable priority claims under 
                        section 507 of title 11, United States Code; 
                        and
                            (iii) allowable secured claims.
            (5) Class action trust.--The assets of any class action 
        trust that has been established in respect of the liabilities 
        for asbestos claims of any person included within a debtor and 
        affiliated group that has been included in Tier I (exclusive of 
        any assets needed to pay previously incurred expenses and 
        asbestos claims within the meaning of section 403(d)(1), before 
        the date of enactment of this Act) shall be transferred to the 
        Fund not later than 6 months after the date of enactment of 
        this Act.
    (c) Tier II Subtiers.--
            (1) In general.--Each person or affiliated group in Tier II 
        shall be included in 1 of the 5 subtiers of Tier II, based on 
        the person's or affiliated group's revenues. Such subtiers 
        shall each contain as close to an equal number of total persons 
        and affiliated groups as possible, with--
                    (A) those persons or affiliated groups with the 
                highest revenues included in Subtier 1;
                    (B) those persons or affiliated groups with the 
                next highest revenues included in Subtier 2;
                    (C) those persons or affiliated groups with the 
                lowest revenues included in Subtier 5;
                    (D) those persons or affiliated groups with the 
                next lowest revenues included in Subtier 4; and
                    (E) those persons or affiliated groups remaining 
                included in Subtier 3.
            (2) Payments.--Each person or affiliated group within each 
        subtier shall pay, on an annual basis, the following:
                    (A) Subtier 1: $27,500,000.
                    (B) Subtier 2: $24,750,000.
                    (C) Subtier 3: $22,000,000.
                    (D) Subtier 4: $19,250,000.
                    (E) Subtier 5: $16,500,000.
    (d) Tier III Subtiers.--
            (1) In general.--Each person or affiliated group in Tier 
        III shall be included in 1 of the 5 subtiers of Tier III, based 
        on the person's or affiliated group's revenues. Such subtiers 
        shall each contain as close to an equal number of total persons 
        and affiliated groups as possible, with--
                    (A) those persons or affiliated groups with the 
                highest revenues included in Subtier 1;
                    (B) those persons or affiliated groups with the 
                next highest revenues included in Subtier 2;
                    (C) those persons or affiliated groups with the 
                lowest revenues included in Subtier 5;
                    (D) those persons or affiliated groups with the 
                next lowest revenues included in Subtier 4; and
                    (E) those persons or affiliated groups remaining 
                included in Subtier 3.
            (2) Payments.--Each person or affiliated group within each 
        subtier shall pay, on an annual basis, the following:
                    (A) Subtier 1: $16,500,000.
                    (B) Subtier 2: $13,750,000.
                    (C) Subtier 3: $11,000,000.
                    (D) Subtier 4: $8,250,000.
                    (E) Subtier 5: $5,500,000.
    (e) Tier IV Subtiers.--
            (1) In general.--Each person or affiliated group in Tier IV 
        shall be included in 1 of the 4 subtiers of Tier IV, based on 
        the person's or affiliated group's revenues. Such subtiers 
        shall each contain as close to an equal number of total persons 
        and affiliated groups as possible, with those persons or 
        affiliated groups with the highest revenues in Subtier 1, those 
        with the lowest revenues in Subtier 4. Those persons or 
        affiliated groups with the highest revenues among those 
        remaining will be included in Subtier 2 and the rest in Subtier 
        3.
            (2) Payment.--Each person or affiliated group within each 
        subtier shall pay, on an annual basis, the following:
                    (A) Subtier 1: $3,850,000.
                    (B) Subtier 2: $2,475,000.
                    (C) Subtier 3: $1,650,000.
                    (D) Subtier 4: $550,000.
    (f) Tier V Subtiers.--
            (1) In general.--Each person or affiliated group in Tier V 
        shall be included in 1 of the 3 subtiers of Tier V, based on 
        the person's or affiliated group's revenues. Such subtiers 
        shall each contain as close to an equal number of total persons 
        and affiliated groups as possible, with those persons or 
        affiliated groups with the highest revenues in Subtier 1, those 
        with the lowest revenues in Subtier 3, and those remaining in 
        Subtier 2.
            (2) Payment.--Each person or affiliated group within each 
        subtier shall pay, on an annual basis, the following:
                    (A) Subtier 1: $1,000,000.
                    (B) Subtier 2: $500,000.
                    (C) Subtier 3: $200,000.
    (g) Tier VI Subtiers.--
            (1) In general.--Each person or affiliated group in Tier VI 
        shall be included in 1 of the 3 subtiers of Tier VI, based on 
        the person's or affiliated group's revenues. Such subtiers 
        shall each contain as close to an equal number of total persons 
        and affiliated groups as possible, with those persons or 
        affiliated groups with the highest revenues in Subtier 1, those 
        with the lowest revenues in Subtier 3, and those remaining in 
        Subtier 2.
            (2) Payment.--Each person or affiliated group within each 
        subtier shall pay, on an annual basis, the following:
                    (A) Subtier 1: $500,000.
                    (B) Subtier 2: $250,000.
                    (C) Subtier 3: $100,000.
    (h) Tier VII.--
            (1) In general.--Notwithstanding prior asbestos 
        expenditures that might qualify a person or affiliated group to 
        be included in Tiers II, III, IV, V, or VI, a person or 
        affiliated group shall also be included in Tier VII, if the 
        person or affiliated group--
                    (A) is or has at any time been subject to asbestos 
                claims brought under the Act of April 22, 1908 (45 
                U.S.C. 51 et seq.), commonly known as the Employers' 
                Liability Act, as a result of operations as a common 
                carrier by railroad; and
                    (B) has paid (including any payments made by others 
                on behalf of such person or affiliated group) not less 
                than $5,000,000 in settlement, judgment, defense, or 
                indemnity costs relating to such claims.
            (2) Additional amount.--The payment requirement for persons 
        or affiliated groups included in Tier VII shall be in addition 
        to any payment requirement applicable to such person or 
        affiliated group under Tiers II through VI.
            (3) Subtier 1.--Each person or affiliated group in Tier VII 
        with revenues of $6,000,000,000 or more is included in Subtier 
        1 and shall make annual payments of $11,000,000 to the Fund.
            (4) Subtier 2.--Each person or affiliated group in Tier VII 
        with revenues of less than $6,000,000,000, but not less than 
        $4,000,000,000 is included in Subtier 2 and shall make annual 
        payments of $5,500,000 to the Fund.
            (5) Subtier 3.--Each person or affiliated group in Tier VII 
        with revenues of less than $4,000,000,000, but not less than 
        $500,000,000 is included in Subtier 3 and shall make annual 
        payments of $550,000 to the Fund.
            (6) Joint venture revenues and liability.--
                    (A) Revenues.--For purposes of this subsection, the 
                revenues of a joint venture shall be included on a pro 
                rata basis reflecting relative joint ownership to 
                calculate the revenues of the parents of that joint 
                venture. The joint venture shall not be responsible for 
                a contribution amount under this subsection.
                    (B) Liability.--For purposes of this subsection, 
                the liability under the Act of April 22, 1908 (45 
                U.S.C. 51 et seq.), commonly known as the Employers' 
                Liability Act, shall be attributed to the parent owners 
                of the joint venture on a pro rata basis, reflecting 
                their relative share of ownership. The joint venture 
                shall not be responsible for a payment amount under 
                this provision.

SEC. 204. ASSESSMENT ADMINISTRATION.

    (a) In General.--Each defendant participant or affiliated group 
shall pay to the Fund in the amounts provided under this subtitle as 
appropriate for its tier and subtier each year until the earlier to 
occur of the following:
            (1) The participant or affiliated group has satisfied its 
        obligations under this subtitle during the 30 annual payment 
        cycles of the operation of the Fund.
            (2) The amount received by the Fund from defendant 
        participants, excluding any amounts rebated to defendant 
        participants under subsection (d), equals the maximum aggregate 
        payment obligation of section 202(a)(2).
    (b) Small Business Exemption.--Notwithstanding any other provision 
of this subtitle, a person or affiliated group that is a small business 
concern (as defined under section 3 of the Small Business Act (15 
U.S.C. 632)), on December 31, 2002, is exempt from any payment 
requirement under this subtitle and shall not be included in the 
subtier allocations under section 203.
    (c) Procedures.--The Administrator shall prescribe procedures on 
how amounts payable under this subtitle are to be paid, including, to 
the extent the Administrator determines appropriate, procedures 
relating to payment in installments.
    (d) Adjustments.--
            (1) In general.--Under expedited procedures established by 
        the Administrator, a defendant participant may seek adjustment 
        of the amount of its payment obligation based on severe 
        financial hardship or demonstrated inequity. The Administrator 
        may determine whether to grant an adjustment and the size of 
        any such adjustment, in accordance with this subsection. A 
        defendant participant has a right to obtain a rehearing of the 
        Administrator's determination under this subsection under the 
        procedures prescribed in subsection (i)(10). The Administrator 
        may adjust a defendant participant's payment obligations under 
        this subsection, either by forgiving the relevant portion of 
        the otherwise applicable payment obligation or by providing 
        relevant rebates from the defendant hardship and inequity 
        adjustment account created under subsection (j) after payment 
        of the otherwise applicable payment obligation, at the 
        discretion of the Administrator.
            (2) Financial hardship adjustments.--
                    (A) In general.--A defendant participant may apply 
                for an adjustment based on financial hardship at any 
                time during the period in which a payment obligation to 
                the Fund remains outstanding and may qualify for such 
                adjustment by demonstrating that the amount of its 
                payment obligation under the statutory allocation would 
                constitute a severe financial hardship.
                    (B) Term.--Subject to the annual availability of 
                funds in the defendant hardship and inequity adjustment 
                account established under subsection (j), a financial 
                hardship adjustment under this subsection shall have a 
                term of 3 years.
                    (C) Renewal.--After an initial hardship adjustment 
                is granted under this paragraph, a defendant 
                participant may renew its hardship adjustment by 
                demonstrating that it remains justified.
                    (D) Reinstatement.--Following the expiration of the 
                hardship adjustment period provided for under this 
                section and during the funding period prescribed under 
                subsection (a), the Administrator shall annually 
                determine whether there has been a material change in 
                the financial condition of the defendant participant 
                such that the Administrator may, consistent with the 
                policies and legislative intent underlying this Act, 
                reinstate under terms and conditions established by the 
                Administrator any part or all of the defendant 
                participant's payment obligation under the statutory 
                allocation that was not paid during the hardship 
                adjustment term.
            (3) Inequity adjustments.--
                    (A) In general.--A defendant participant--
                            (i) may qualify for an adjustment based on 
                        inequity by demonstrating that the amount of 
                        its payment obligation under the statutory 
                        allocation is exceptionally inequitable--
                                    (I) when measured against the 
                                amount of the likely cost to the 
                                defendant participant net of insurance 
                                of its future liability in the tort 
                                system in the absence of the Fund;
                                    (II) when compared to the median 
                                payment rate for all defendant 
                                participants in the same tier; or
                                    (III) when measured against the 
                                percentage of the prior asbestos 
                                expenditures of the defendant that were 
                                incurred with respect to claims that 
                                neither resulted in an adverse judgment 
                                against the defendant, nor were the 
                                subject of a settlement that required a 
                                payment to a plaintiff by or on behalf 
                                of that defendant;
                            (ii) shall qualify for a two-tier main tier 
                        and a two-tier subtier adjustment reducing the 
                        defendant participant's payment obligation 
                        based on inequity by demonstrating that not 
                        less than 95 percent of such person's prior 
                        asbestos expenditures arose from claims related 
                        to the manufacture and sale of railroad 
                        locomotives and related products, so long as 
                        such person's manufacture and sale of railroad 
                        locomotives and related products is temporally 
                        and causally remote, and for purposes of this 
                        clause, a person's manufacture and sale of 
                        railroad locomotives and related products shall 
                        be deemed to be temporally and causally remote 
                        if the asbestos claims historically and 
                        generally filed against such person relate to 
                        the manufacture and sale of railroad 
                        locomotives and related products by an entity 
                        dissolved more than 25 years before the date of 
                        enactment of this Act; and
                            (iii) shall be granted a two-tier 
                        adjustment reducing the defendant participant's 
                        payment obligation based on inequity by 
                        demonstrating that not less than 95 percent of 
                        such participant's prior asbestos expenditures 
                        arose from asbestos claims based on successor 
                        liability arising from a merger to which the 
                        participant or its predecessor was a party that 
                        occurred at least 30 years before the date of 
                        enactment of this Act, and that such prior 
                        asbestos expenditures exceed the inflation-
                        adjusted value of the assets of the company 
                        from which such liability was derived in such 
                        merger, and upon such demonstration the 
                        Administrator shall grant such adjustment for 
                        the life of the Fund and amounts paid by such 
                        defendant participant prior to such adjustment 
                        in excess of its adjusted payment obligation 
                        under this clause shall be credited against 
                        next succeeding required payment obligations.
                    (B) Payment rate.--For purposes of subparagraph 
                (A), the payment rate of a defendant participant is the 
                payment amount of the defendant participant as a 
                percentage of such defendant participant's gross 
                revenues for the year ending December 31, 2002.
                    (C) Term.--Subject to the annual availability of 
                funds in the defendant hardship and inequity adjustment 
                account established under subsection (j), an inequity 
                adjustment under this subsection shall have a term of 3 
                years.
                    (D) Renewal.--A defendant participant may renew an 
                inequity adjustment every 3 years by demonstrating that 
                the adjustment remains justified.
                    (E) Reinstatement.--
                            (i) In general.--Following the termination 
                        of an inequity adjustment under subparagraph 
                        (A), and during the funding period prescribed 
                        under subsection (a), the Administrator shall 
                        annually determine whether there has been a 
                        material change in conditions which would 
                        support a finding that the amount of the 
                        defendant participant's payment under the 
                        statutory allocation was not inequitable. Based 
                        on this determination, the Administrator may, 
                        consistent with the policies and legislative 
                        intent underlying this Act, reinstate any or 
                        all of the payment obligations of the defendant 
                        participant as if the inequity adjustment had 
                        not been granted for that 3-year period.
                            (ii) Terms and conditions.--In the event of 
                        a reinstatement under clause (i), the 
                        Administrator may require the defendant 
                        participant to pay any part or all of amounts 
                        not paid due to the inequity adjustment on such 
                        terms and conditions as established by the 
                        Administrator.
            (4) Limitation on adjustments.--The aggregate total of 
        financial hardship adjustments under paragraph (2) and inequity 
        adjustments under paragraph (3) in effect in any given year 
        shall not exceed $300,000,000, except to the extent additional 
        monies are available for such adjustments as a result of 
        carryover of prior years' funds under subsection (j)(3) or as a 
        result of monies being made available in that year under 
        subsection (k)(1)(A).
            (5) Advisory panels.--
                    (A) Appointment.--The Administrator shall appoint a 
                Financial Hardship Adjustment Panel and an Inequity 
                Adjustment Panel to advise the Administrator in 
                carrying out this subsection.
                    (B) Membership.--The membership of the panels 
                appointed under subparagraph (A) may overlap.
                    (C) Coordination.--The panels appointed under 
                subparagraph (A) shall coordinate their deliberations 
                and advice.
    (e) Limitation on Liability.--The liability of each defendant 
participant to pay to the Fund shall be limited to the payment 
obligations under this Act, and, except as provided in subsection (f) 
and section 203(b)(2)(D), no defendant participant shall have any 
liability for the payment obligations of any other defendant 
participant.
    (f) Consolidation of Payments.--
            (1) In general.--For purposes of determining the payment 
        levels of defendant participants, any affiliated group 
        including 1 or more defendant participants may irrevocably 
        elect, as part of the submissions to be made under paragraphs 
        (1) and (3) of subsection (i), to report on a consolidated 
        basis all of the information necessary to determine the payment 
        level under this subtitle and pay to the Fund on a consolidated 
        basis.
            (2) Election.--If an affiliated group elects consolidation 
        as provided in this subsection--
                    (A) for purposes of this Act other than this 
                subsection, the affiliated group shall be treated as if 
                it were a single participant, including with respect to 
                the assessment of a single annual payment under this 
                subtitle for the entire affiliated group;
                    (B) the ultimate parent of the affiliated group 
                shall prepare and submit each submission to be made 
                under subsection (i) on behalf of the entire affiliated 
                group and shall be solely liable, as between the 
                Administrator and the affiliated group only, for the 
                payment of the annual amount due from the affiliated 
                group under this subtitle, except that, if the ultimate 
                parent does not pay when due any payment obligation for 
                the affiliated group, the Administrator shall have the 
                right to seek payment of all or any portion of the 
                entire amount due (as well as any other amount for 
                which the affiliated group may be liable under sections 
                223 and 224) from any member of the affiliated group;
                    (C) all members of the affiliated group shall be 
                identified in the submission under subsection (i) and 
                shall certify compliance with this subsection and the 
                Administrator's regulations implementing this 
                subsection; and
                    (D) the obligations under this subtitle shall not 
                change even if, after the date of enactment of this 
                Act, the beneficial ownership interest between any 
                members of the affiliated group shall change.
            (3) Cause of action.--Notwithstanding section 221(e), this 
        Act shall not preclude actions among persons within an 
        affiliated group with respect to the payment obligations under 
        this Act.
    (g) Determination of Prior Asbestos Expenditures.--
            (1) In general.--For purposes of determining a defendant 
        participant's prior asbestos expenditures, the Administrator 
        shall prescribe such rules as may be necessary or appropriate 
        to assure that payments by indemnitors before December 31, 
        2002, shall be counted as part of the indemnitor's prior 
        asbestos expenditures, rather than the indemnitee's prior 
        asbestos expenditures, in accordance with this subsection.
            (2) Indemnifiable costs.--If an indemnitor has paid or 
        reimbursed to an indemnitee any indemnifiable cost or otherwise 
        made a payment on behalf of or for the benefit of an indemnitee 
        to a third party for an indemnifiable cost before December 31, 
        2002, the amount of such indemnifiable cost shall be solely for 
        the account of the indemnitor for purposes under this Act.
            (3) Insurance payments.--When computing the prior asbestos 
        expenditures with respect to an asbestos claim, any amount paid 
        or reimbursed by insurance shall be solely for the account of 
        the indemnitor, even if the indemnitor would have no direct 
        right to the benefit of the insurance, if--
                    (A) such insurance has been paid or reimbursed to 
                the indemnitor or the indemnitee, or paid on behalf of 
                or for the benefit of the indemnitee; and
                    (B) the indemnitor has either, with respect to such 
                asbestos claim or any similar asbestos claim, paid or 
                reimbursed to its indemnitee any indemnifiable cost or 
                paid to any third party on behalf of or for the benefit 
                of the indemnitee any indemnifiable cost.
            (4) Treatment of certain expenditures.--Notwithstanding any 
        other provision of this Act, where--
                    (A) an indemnitor entered into a stock purchase 
                agreement in 1988 that involved the sale of the stock 
                of businesses that produced friction and other 
                products; and
                    (B) the stock purchase agreement provided that the 
                indemnitor indemnified the indemnitee and its 
                affiliates for losses arising from various matters, 
                including asbestos claims--
                            (i) asserted before the date of the 
                        agreement; and
                            (ii) filed after the date of the agreement 
                        and prior to the 10-year anniversary of the 
                        stock sale,
        then the prior asbestos expenditures arising from the asbestos 
        claims described in clauses (i) and (ii) shall not be for the 
        account of either the indemnitor or indemnitee.
    (h) Minimum Annual Payments.--
            (1) In general.--The aggregate annual payments of defendant 
        participants to the Fund shall be at least $3,000,000,000 for 
        each calendar year in the first 30 years of the Fund, or until 
        such shorter time as the condition set forth in subsection 
        (a)(2) is attained.
            (2) Guaranteed payment account.--To the extent payments in 
        accordance with sections 202 and 203 (as modified by 
        subsections (b), (d), (f) and (g) of this section) fail in any 
        year to raise at least $3,000,000,000 net of any adjustments 
        under subsection (d), the balance needed to meet this required 
        minimum aggregate annual payment shall be obtained from the 
        defendant guaranteed payment account established under 
        subsection (k).
            (3) Guaranteed payment surcharge.--To the extent the 
        procedure set forth in paragraph (2) is insufficient to satisfy 
        the required minimum aggregate annual payment net of any 
        adjustments under subsection (d), the Administrator may assess 
        a guaranteed payment surcharge under subsection (l).
    (i) Procedures for Making Payments.--
            (1) Initial year: tiers ii-vi.--
                    (A) In general.--Not later than 120 days after 
                enactment of this Act, each defendant participant that 
                is included in Tiers II, III, IV, V, or VI shall file 
                with the Administrator--
                            (i) a statement of whether the defendant 
                        participant irrevocably elects to report on a 
                        consolidated basis under subsection (f);
                            (ii) a good-faith estimate of its prior 
                        asbestos expenditures;
                            (iii) a statement of its 2002 revenues, 
                        determined in accordance with section 
                        203(a)(2); and
                            (iv) payment in the amount specified in 
                        section 203 for the lowest subtier of the tier 
                        within which the defendant participant falls, 
                        except that if the defendant participant, or 
                        the affiliated group including the defendant 
                        participant, had 2002 revenues exceeding 
                        $3,000,000,000, it or its affiliated group 
                        shall pay the amount specified for Subtier 3 of 
                        Tiers II, III, or IV or Subtier 2 of Tiers V or 
                        VI, depending on the applicable Tier.
                    (B) Relief.--
                            (i) In general.--The Administrator shall 
                        establish procedures to grant a defendant 
                        participant relief from its initial payment 
                        obligation if the participant shows that--
                                    (I) the participant is likely to 
                                qualify for a financial hardship 
                                adjustment; and
                                    (II) failure to provide interim 
                                relief would cause severe irreparable 
                                harm.
                            (ii) Judicial relief.--The Administrator's 
                        refusal to grant relief under clause (i) is 
                        subject to immediate judicial review under 
                        section 303.
            (2) Initial year: tier i.--Not later than 60 days after 
        enactment of this Act, each debtor shall file with the 
        Administrator--
                    (A) a statement identifying the bankruptcy case(s) 
                associated with the debtor;
                    (B) a statement whether its prior asbestos 
                expenditures exceed $1,000,000;
                    (C) a statement whether it has material continuing 
                business operations and, if not, whether it holds cash 
                or other assets that have been allocated or earmarked 
                for asbestos settlements;
                    (D) in the case of debtors falling within Subtier 1 
                of Tier I, a statement of the debtor's 2002 revenues, 
                determined in accordance with section 203(a)(2), and a 
                payment under section 203(b)(2)(B);
                    (E) in the case of debtors falling within Subtier 2 
                of Tier I, an assignment of its assets under section 
                203(b)(3)(B); and
                    (F) in the case of debtors falling within Subtier 3 
                of Tier I, a payment under section 203(b)(4)(B), and a 
                statement of how such payment was calculated.
            (3) Initial year: tier vii.--Not later than 90 days after 
        enactment of this Act, each defendant participant in Tier VII 
        shall file with the Administrator--
                    (A) a good-faith estimate of all payments of the 
                type described in section 203(h)(1) (as modified by 
                section 203(h)(6));
                    (B) a statement of revenues calculated in 
                accordance with sections 203(a)(2) and 203(h); and
                    (C) payment in the amount specified in section 
                203(h).
            (4) Notice to participants.--Not later than 240 days after 
        enactment of this Act, the Administrator shall--
                    (A) directly notify all reasonably identifiable 
                defendant participants of the requirement to submit 
                information necessary to calculate the amount of any 
                required payment to the Fund; and
                    (B) publish in the Federal Register a notice--
                            (i) setting forth the criteria in this Act, 
                        and as prescribed by the Administrator in 
                        accordance with this Act, for paying under this 
                        subtitle as a defendant participant and 
                        requiring any person who may be a defendant 
                        participant to submit such information; and
                            (ii) that includes a list of all defendant 
                        participants notified by the Administrator 
                        under subparagraph (A), and provides for 30 
                        days for the submission by the public of 
                        comments or information regarding the 
                        completeness and accuracy of the list of 
                        identified defendant participants.
            (5) Response required.--
                    (A) In general.--Any person who receives notice 
                under paragraph (4)(A), and any other person meeting 
                the criteria specified in the notice published under 
                paragraph (4)(B), shall provide the Administrator with 
                an address to send any notice from the Administrator in 
                accordance with this Act and all the information 
                required by the Administrator in accordance with this 
                subsection no later than the earlier of--
                            (i) 30 days after the receipt of direct 
                        notice; or
                            (ii) 30 days after the publication of 
                        notice in the Federal Register.
                    (B) Certification.--The response submitted under 
                subparagraph (A) shall be signed by a responsible 
                corporate officer, general partner, proprietor, or 
                individual of similar authority, who shall certify 
                under penalty of law the completeness and accuracy of 
                the information submitted.
                    (C) Consent to audit authority.--The response 
                submitted under subparagraph (A) shall include, on 
                behalf of the defendant participant or affiliated 
                group, a consent to the Administrator's audit authority 
                under section 221(d).
            (6) Notice of initial determination.--
                    (A) In general.--
                            (i) Notice to individual.--Not later than 
                        60 days after receiving a response under 
                        paragraph (5), the Administrator shall send the 
                        person a notice of initial determination 
                        identifying the tier and subtier, if any, into 
                        which the person falls and the annual payment 
                        obligation, if any, to the Fund, which 
                        determination shall be based on the information 
                        received from the person under this subsection 
                        and any other pertinent information available 
                        to the Administrator and identified to the 
                        defendant participant.
                            (ii) Public notice.--Not later than 7 days 
                        after sending the notification of initial 
                        determination to defendant participants, the 
                        Administrator shall publish in the Federal 
                        Register a notice listing the defendant 
                        participants that have been sent such 
                        notification, and the initial determination 
                        identifying the tier and subtier assignment and 
                        annual payment obligation of each identified 
                        participant.
                    (B) No response; incomplete response.--If no 
                response in accordance with paragraph (5) is received 
                from a defendant participant, or if the response is 
                incomplete, the initial determination shall be based on 
                the best information available to the Administrator.
                    (C) Payments.--Within 30 days of receiving a notice 
                of initial determination requiring payment, the 
                defendant participant shall pay the Administrator the 
                amount required by the notice, after deducting any 
                previous payment made by the participant under this 
                subsection. If the amount that the defendant 
                participant is required to pay is less than any 
                previous payment made by the participant under this 
                subsection, the Administrator shall credit any excess 
                payment against the future payment obligations of that 
                defendant participant. The pendency of a petition for 
                rehearing under paragraph (10) shall not stay the 
                obligation of the participant to make the payment 
                specified in the Administrator's notice.
            (7) Exemptions for information required.--
                    (A) Prior asbestos expenditures.--In lieu of 
                submitting information related to prior asbestos 
                expenditures as may be required for purposes of this 
                subtitle, a non-debtor defendant participant may 
                consent to be assigned to Tier II.
                    (B) Revenues.--In lieu of submitting information 
                related to revenues as may be required for purposes of 
                this subtitle, a non-debtor defendant participant may 
                consent to be assigned to Subtier 1 of the defendant 
                participant's applicable tier.
            (8) New information.--
                    (A) Existing participant.--The Administrator shall 
                adopt procedures for requiring additional payment, or 
                refunding amounts already paid, based on new 
                information received.
                    (B) Additional participant.--If the Administrator, 
                at any time, receives information that an additional 
                person may qualify as a defendant participant, the 
                Administrator shall require such person to submit 
                information necessary to determine whether that person 
                is required to make payments, and in what amount, under 
                this subtitle and shall make any determination or take 
                any other act consistent with this Act based on such 
                information or any other information available to the 
                Administrator with respect to such person.
            (9) Subpoenas.--The Administrator may request the Attorney 
        General to subpoena persons to compel testimony, records, and 
        other information relevant to its responsibilities under this 
        section. The Attorney General may enforce such subpoena in 
        appropriate proceedings in the United States district court for 
        the district in which the person to whom the subpoena was 
        addressed resides, was served, or transacts business.
            (10) Rehearing.--A defendant participant has a right to 
        obtain rehearing of the Administrator's determination under 
        this subsection of the applicable tier or subtier and of the 
        Administrator's determination under subsection (d) of a 
        financial hardship or inequity adjustment, if the request for 
        rehearing is filed within 30 days after the defendant 
        participant's receipt of notice from the Administrator of the 
        determination. A defendant participant may not file an action 
        under section 303 unless the defendant participant requests a 
        rehearing under this paragraph. The Administrator shall publish 
        a notice in the Federal Register of any change in a defendant 
        participant's tier or subtier assignment or payment obligation 
        as a result of a rehearing.
    (j) Defendant Hardship and Inequity Adjustment Account.--
            (1) In general.--To the extent the total payments by 
        defendant participants in any given year exceed the minimum 
        aggregate annual payments under subsection (h), excess monies 
        up to a maximum of $300,000,000 in any such year shall be 
        placed in a defendant hardship and inequity adjustment account 
        established within the Fund by the Administrator.
            (2) Use of account monies.--Monies from the defendant 
        hardship and inequity adjustment account shall be preserved and 
        administered like the remainder of the Fund, but shall be 
        reserved and may be used only--
                    (A) to make up for any relief granted to a 
                defendant participant for severe financial hardship or 
                demonstrated inequity under subsection (d) or to 
                reimburse any defendant participant granted such relief 
                after its payment of the amount otherwise due; and
                    (B) if the condition set forth in subsection (a)(2) 
                is met, for any purpose that the Fund may serve under 
                this Act.
            (3) Carryover of unused funds.--To the extent the 
        Administrator does not, in any given year, use all of the funds 
        allocated to the account under paragraph (1) for adjustments 
        granted under subsection (d), remaining funds in the account 
        shall be carried forward for use by the Administrator for 
        adjustments in subsequent years.
    (k) Defendant Guaranteed Payment Account.--
            (1) In general.--Subject to subsections (h) and (j), if 
        there are excess monies paid by defendant participants in any 
        given year, including any bankruptcy trust credits that may be 
        due under section 222(e), such monies--
                    (A) at the discretion of the Administrator, may be 
                used to provide additional adjustments under subsection 
                (d), up to a maximum aggregate of $50,000,000 in such 
                year; and
                    (B) to the extent not used under subparagraph (A), 
                shall be placed in a defendant guaranteed payment 
                account established within the Fund by the 
                Administrator.
            (2) Use of account monies.--Monies from the defendant 
        guaranteed payment account shall be preserved and administered 
        like the remainder of the Fund, but shall be reserved and may 
        be used only--
                    (A) to ensure the minimum aggregate annual payment 
                set forth in subsection (h) net of any adjustments 
                under subsection (d) is reached each year; and
                    (B) if the condition set forth in subsection (a)(2) 
                is met, for any purpose that the Fund may serve under 
                this Act.
    (l) Guaranteed Payment Surcharge.--
            (1) In general.--To the extent there are insufficient 
        monies in the defendant guaranteed payment account established 
        in subsection (k) to attain the minimum aggregate annual 
        payment net of any adjustments under subsection (d) in any 
        given year, the Administrator may impose on each defendant 
        participant a surcharge as necessary to raise the balance 
        required to attain the minimum aggregate annual payment net of 
        any adjustments under subsection (d), as provided in this 
        subsection. Any such surcharge shall be imposed on a pro rata 
        basis, in accordance with each defendant participant's relative 
        annual liability under sections 202 and 203 (as modified by 
        subsections (b), (d), (f), and (g) of this section).
            (2) Certification.--
                    (A) In general.--Before imposing a guaranteed 
                payment surcharge under this subsection, the 
                Administrator shall certify that he or she has used all 
                reasonable efforts to collect mandatory payments for 
                all defendant participants, including by using the 
                authority in subsection (i)(9) of this section and 
                section 223.
                    (B) Notice and comment.--Before making a final 
                certification under subparagraph (C), the Administrator 
                shall publish a notice in the Federal Register of a 
                proposed certification and provide in such notice for a 
                public comment period of 30 days.
                    (C) Final certification.--
                            (i) In general.--The Administrator shall 
                        publish a notice of the final certification in 
                        the Federal Register after consideration of all 
                        comments submitted under subparagraph (B).
                            (ii) Written notice.--Not later than 30 
                        days after publishing any final certification 
                        under clause (i), the Administrator shall 
                        provide each defendant participant with written 
                        notice of that defendant participant's payment, 
                        including the amount of any surcharge.

SEC. 205. STEPDOWNS AND FUNDING HOLIDAYS.

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

                Subtitle B--Asbestos Insurers Commission

SEC. 210. DEFINITION.

    In this subtitle, the term ``captive insurance company'' means a 
company--
            (1) whose entire beneficial interest is owned on the date 
        of enactment of this Act, directly or indirectly, by a 
        defendant participant or by the ultimate parent or the 
        affiliated group of a defendant participant;
            (2) whose primary commercial business during the period 
        from calendar years 1940 through 1986 was to provide insurance 
        to its ultimate parent or affiliated group, or any portion of 
        the affiliated group or a combination thereof; and
            (3) that was incorporated or operating no later than 
        December 31, 2003.

SEC. 211. ESTABLISHMENT OF ASBESTOS INSURERS COMMISSION.

    (a) Establishment.--There is established the Asbestos Insurers 
Commission (referred to in this subtitle as the ``Commission'') to 
carry out the duties described in section 212.
    (b) Membership.--
            (1) Appointment.--The Commission shall be composed of 5 
        members who shall be appointed by the President, by and with 
        the advice and consent of the Senate.
            (2) Qualifications.--
                    (A) Expertise.--Members of the Commission shall 
                have sufficient expertise to fulfill their 
                responsibilities under this subtitle.
                    (B) Conflict of interest.--
                            (i) In general.--No member of the 
                        Commission appointed under paragraph (1) may be 
                        an employee or immediate family member of an 
                        employee of an insurer participant. No member 
                        of the Commission shall be a shareholder of any 
                        insurer participant. No member of the 
                        Commission shall be a former officer or 
                        director, or a former employee or former 
                        shareholder of any insurer participant who was 
                        such an employee, shareholder, officer, or 
                        director at any time during the 2-year period 
                        ending on the date of the appointment, unless 
                        that is fully disclosed before consideration in 
                        the Senate of the nomination for appointment to 
                        the Commission.
                            (ii) Definition.--In clause (i), the term 
                        ``shareholder'' shall not include a broadly 
                        based mutual fund that includes the stocks of 
                        insurer participants as a portion of its 
                        overall holdings.
                    (C) Federal employment.--A member of the Commission 
                may not be an officer or employee of the Federal 
                Government, except by reason of membership on the 
                Commission.
            (3) Period of appointment.--Members shall be appointed for 
        the life of the Commission.
            (4) Vacancies.--Any vacancy in the Commission shall be 
        filled in the same manner as the original appointment.
            (5) Chairman.--The President shall select a Chairman from 
        among the members of the Commission.
    (c) Meetings.--
            (1) Initial meeting.--Not later than 30 days after the date 
        on which all members of the Commission have been appointed, the 
        Commission shall hold its first meeting.
            (2) Subsequent meetings.--The Commission shall meet at the 
        call of the Chairman, as necessary to accomplish the duties 
        under section 212.
            (3) Quorum.--No business may be conducted or hearings held 
        without the participation of a majority of the members of the 
        Commission.

SEC. 212. DUTIES OF ASBESTOS INSURERS COMMISSION.

    (a) Determination of Insurer Payment Obligations.--
            (1) In general.--
                    (A) Definitions.--For the purposes of this Act, the 
                terms ``insurer'' and ``insurer participant'' shall, 
                unless stated otherwise, include direct insurers and 
                reinsurers, as well as any run-off entity established, 
                in whole or in part, to review and pay asbestos claims.
                    (B) Procedures for determining insurer payments.--
                The Commission shall determine the amount that each 
                insurer participant shall be required to pay into the 
                Fund under the procedures described in this section. 
                The Commission shall make this determination by first 
                promulgating a rule establishing a methodology for 
                allocation of payments among insurer participants and 
                then applying such methodology to determine the 
                individual payment for each insurer participant. The 
                methodology may include 1 or more allocation formulas 
                to be applied to all insurer participants or groups of 
                similarly situated participants. The Commission's rule 
                shall include a methodology for adjusting payments by 
                insurer participants to make up, during any applicable 
                payment year, any amount by which aggregate insurer 
                payments fall below the level required in paragraph 
                (3)(C). The Commission shall conduct a thorough study 
                (within the time limitations under this subparagraph) 
                of the accuracy of the reserve allocation of each 
                insurer participant, and may request information from 
                the Securities and Exchange Commission or any State 
                regulatory agency. Under this procedure, not later than 
                120 days after the initial meeting of the Commission, 
                the Commission shall commence a rulemaking proceeding 
                under section 213(a) to propose and adopt a methodology 
                for allocating payments among insurer participants. In 
                proposing an allocation methodology, the Commission may 
                consult with such actuaries and other experts as it 
                deems appropriate. After hearings and public comment on 
                the proposed allocation methodology, the Commission 
                shall as promptly as possible promulgate a final rule 
                establishing such methodology. After promulgation of 
                the final rule, the Commission shall determine the 
                individual payment of each insurer participant under 
                the procedures set forth in subsection (b).
                    (C) Scope.--Every insurer, reinsurer, and runoff 
                entity with asbestos-related obligations in the United 
                States shall be subject to the Commission's and 
                Administrator's authority under this Act, including 
                allocation determinations, and shall be required to 
                fulfill its payment obligation without regard as to 
                whether it is licensed in the United States. Every 
                insurer participant not licensed or domiciled in the 
                United States shall, upon the first payment to the 
                Fund, submit a written consent to the Commission's and 
                Administrator's authority under this Act, and to the 
                jurisdiction of the courts of the United States for 
                purposes of enforcing this Act, in a form determined by 
                the Administrator. Any insurer participant refusing to 
                provide a written consent shall be subject to fines and 
                penalties as provided in section 223.
                    (D) Issuers of finite risk policies.--
                            (i) In general.--The issuer of any policy 
                        of reinsurance purchased by an insurer 
                        participant or its affiliate after 1990 that 
                        provides for a loss transfer to insure for 
                        incurred asbestos losses and other losses (both 
                        known and unknown), including those policies 
                        commonly referred to as ``finite risk'', 
                        ``aggregate stop loss'', ``aggregate excess of 
                        loss'', or ``loss portfolio transfer'' 
                        policies, shall be obligated to make payments 
                        required under this Act directly to the Fund on 
                        behalf of the insurer participant who is the 
                        beneficiary of such policy, subject to the 
                        underlying retention and the limits of 
                        liability applicable to such policy.
                            (ii) Payments.--Payments to the Fund 
                        required under this Act shall be treated as 
                        loss payments for asbestos bodily injury (as if 
                        such payments were incurred as liabilities 
                        imposed in the tort system) and shall not be 
                        subject to exclusion under policies described 
                        under clause (i) as a liability with respect to 
                        tax or assessment. Within 90 days after the 
                        scheduled date to make an annual payment to the 
                        Fund, the insurer participant shall, at its 
                        discretion, direct the reinsurer issuing such 
                        policy to pay all or a portion of the annual 
                        payment directly to the Fund up to the full 
                        applicable limits of liability under the 
                        policy. The reinsurer issuing such policy shall 
                        be obligated to make such payments directly to 
                        the Fund and shall be subject to the 
                        enforcement provisions under section 223. The 
                        insurer participant shall remain obligated to 
                        make payment to the Fund of that portion of the 
                        annual payment not directed to the issuer of 
                        such reinsurance policy.
            (2) Amount of payments.--
                    (A) Aggregate payment obligation.--The total 
                payment required of all insurer participants over the 
                life of the Fund shall be equal to $46,025,000,000.
                    (B) Accounting standards.--In determining the 
                payment obligations of participants that are not 
                licensed or domiciled in the United States or that are 
                runoff entities, the Commission shall use accounting 
                standards required for United States licensed direct 
                insurers.
                    (C) Captive insurance companies.--No payment to the 
                Fund shall be required from a captive insurance 
                company, unless and only to the extent a captive 
                insurance company, on the date of enactment of this 
                Act, has liability, directly or indirectly, for any 
                asbestos claim of a person or persons other than and 
                unaffiliated with its ultimate parent or affiliated 
                group or pool in which the ultimate parent participates 
                or participated, or unaffiliated with a person that was 
                its ultimate parent or a member of its affiliated group 
                or pool at the time the relevant insurance or 
                reinsurance was issued by the captive insurance 
                company.
                    (D) Several liability.--Unless otherwise provided 
                under this Act, each insurer participant's obligation 
                to make payments to the Fund is several. Unless 
                otherwise provided under this Act, there is no joint 
                liability, and the future insolvency by any insurer 
                participant shall not affect the payment required of 
                any other insurer participant.
            (3) Payment of criteria.--
                    (A) Inclusion in insurer participant category.--
                            (i) In general.--Insurers that have paid, 
                        or been assessed by a legal judgment or 
                        settlement, at least $1,000,000 in defense and 
                        indemnity costs before the date of enactment of 
                        this Act in response to claims for compensation 
                        for asbestos injuries arising from a policy of 
                        liability insurance or contract of liability 
                        reinsurance or retrocessional reinsurance shall 
                        be insurer participants in the Fund. Other 
                        insurers shall be exempt from mandatory 
                        payments.
                            (ii) Inapplicability of section 202.--Since 
                        insurers may be subject in certain 
                        jurisdictions to direct action suits, and it is 
                        not the intent of this Act to impose upon an 
                        insurer, due to its operation as an insurer, 
                        payment obligations to the Fund in situations 
                        where the insurer is the subject of a direct 
                        action, no insurer subject to mandatory 
                        payments under section 212 shall also be liable 
                        for payments to the Fund as a defendant 
                        participant under section 202.
                    (B) Insurer participant allocation methodology.--
                            (i) In general.--The Commission shall 
                        establish the payment obligations of individual 
                        insurer participants to reflect, on an 
                        equitable basis, the relative tort system 
                        liability of the participating insurers in the 
                        absence of this Act, considering and weighting, 
                        as appropriate (but exclusive of workers' 
                        compensation), such factors as--
                                    (I) historic premium for lines of 
                                insurance associated with asbestos 
                                exposure over relevant periods of time;
                                    (II) recent loss experience for 
                                asbestos liability;
                                    (III) amounts reserved for asbestos 
                                liability;
                                    (IV) the likely cost to each 
                                insurer participant of its future 
                                liabilities under applicable insurance 
                                policies; and
                                    (V) any other factor the Commission 
                                may determine is relevant and 
                                appropriate.
                            (ii) Determination of reserves.--The 
                        Commission may establish procedures and 
                        standards for determination of the asbestos 
                        reserves of insurer participants. The reserves 
                        of a United States licensed reinsurer that is 
                        wholly owned by, or under common control of, a 
                        United States licensed direct insurer shall be 
                        included as part of the direct insurer's 
                        reserves when the reinsurer's financial results 
                        are included as part of the direct insurer's 
                        United States operations, as reflected in 
                        footnote 33 of its filings with the National 
                        Association of Insurance Commissioners or in 
                        published financial statements prepared in 
                        accordance with generally accepted accounting 
                        principles.
                    (C) Payment schedule.--The aggregate annual amount 
                of payments by insurer participants over the life of 
                the Fund shall be as follows:
                            (i) For years 1 and 2, $2,700,000,000 
                        annually.
                            (ii) For years 3 through 5, $5,075,000,000 
                        annually.
                            (iii) For years 6 through 27, 
                        $1,147,000,000 annually.
                            (iv) For year 28, $166,000,000.
                    (D) Certain runoff entities.--
                            (i) In general.--Whenever the Commission 
                        requires payments by a runoff entity that has 
                        assumed asbestos-related liabilities from a 
                        Lloyd's syndicate or names that are members of 
                        such a syndicate, the Commission shall not 
                        require payments from such syndicates and names 
                        to the extent that the runoff entity makes its 
                        required payments. In addition, such syndicates 
                        and names shall be required to make payments to 
                        the Fund in the amount of any adjustment 
                        granted to the runoff entity for severe 
                        financial hardship or exceptional 
                        circumstances.
                            (ii) Included runoff entities.--Subject to 
                        clause (i), a runoff entity shall include any 
                        direct insurer or reinsurer whose asbestos 
                        liability reserves have been transferred, 
                        directly or indirectly, to the runoff entity 
                        and on whose behalf the runoff entity handles 
                        or adjusts and, where appropriate, pays 
                        asbestos claims.
                    (E) Financial hardship and exceptional circumstance 
                adjustments.--
                            (i) In general.--Under the procedures 
                        established in subsection (b), an insurer 
                        participant may seek adjustment of the amount 
                        of its payments based on exceptional 
                        circumstances or severe financial hardship.
                            (ii) Financial adjustments.--An insurer 
                        participant may qualify for an adjustment based 
                        on severe financial hardship by demonstrating 
                        that payment of the amounts required by the 
                        Commission's methodology would jeopardize the 
                        solvency of such participant.
                            (iii) Exceptional circumstance 
                        adjustment.--An insurer participant may qualify 
                        for an adjustment based on exceptional 
                        circumstances by demonstrating--
                                    (I) that the amount of its payments 
                                under the Commission's allocation 
                                methodology is exceptionally 
                                inequitable when measured against the 
                                amount of the likely cost to the 
                                participant of its future liability in 
                                the tort system in the absence of the 
                                Fund;
                                    (II) an offset credit as described 
                                in subparagraphs (A) and (C) of 
                                subsection (b)(4); or
                                    (III) other exceptional 
                                circumstances.
                        The Commission may determine whether to grant 
                        an adjustment and the size of any such 
                        adjustment, but adjustments shall not reduce 
                        the aggregate payment obligations of insurer 
                        participants specified in paragraph (2)(A) and 
                        subparagraph (C) of this paragraph.
                            (iv) Time period of adjustment.--Except for 
                        adjustments for offset credits, adjustments 
                        granted under this subsection shall have a term 
                        not to exceed 3 years. An insurer participant 
                        may renew its adjustment by demonstrating to 
                        the Administrator that it remains justified.
    (b) Procedure for Notifying Insurer Participants of Individual 
Payment Obligations.--
            (1) Notice to participants.--Not later than 30 days after 
        promulgation of the final rule establishing an allocation 
        methodology under subsection (a)(1), the Commission shall--
                    (A) directly notify all reasonably identifiable 
                insurer participants of the requirement to submit 
                information necessary to calculate the amount of any 
                required payment to the Fund under the allocation 
                methodology; and
                    (B) publish in the Federal Register a notice--
                            (i) requiring any person who may be an 
                        insurer participant (as determined by criteria 
                        outlined in the notice) to submit such 
                        information; and
                            (ii) that includes a list of all insurer 
                        participants notified by the Commission under 
                        subparagraph (A), and provides for 30 days for 
                        the submission of comments or information 
                        regarding the completeness and accuracy of the 
                        list of identified insurer participants.
            (2) Response required by individual insurer participants.--
                    (A) In general.--Any person who receives notice 
                under paragraph (1)(A), and any other person meeting 
                the criteria specified in the notice published under 
                paragraph (1)(B), shall respond by providing the 
                Commission with all the information requested in the 
                notice under a schedule or by a date established by the 
                Commission.
                    (B) Certification.--The response submitted under 
                subparagraph (A) shall be signed by a responsible 
                corporate officer, general partner, proprietor, or 
                individual of similar authority, who shall certify 
                under penalty of law the completeness and accuracy of 
                the information submitted.
            (3) Notice to insurer participants of initial payment 
        determination.--
                    (A) In general.--
                            (i) Notice to insurers.--Not later than 120 
                        days after receipt of the information required 
                        by paragraph (2), the Commission shall send 
                        each insurer participant a notice of initial 
                        determination requiring payments to the Fund, 
                        which shall be based on the information 
                        received from the participant in response to 
                        the Commission's request for information. An 
                        insurer participant's payments shall be payable 
                        over the schedule established in subsection 
                        (a)(3)(C), in annual amounts proportionate to 
                        the aggregate annual amount of payments for all 
                        insurer participants for the applicable year.
                            (ii) Public notice.--Not later than 7 days 
                        after sending the notification of initial 
                        determination to insurer participants, the 
                        Commission shall publish in the Federal 
                        Register a notice listing the insurer 
                        participants that have been sent such 
                        notification, and the initial determination on 
                        the payment obligation of each identified 
                        participant.
                    (B) No response; incomplete response.--If no 
                response is received from an insurer participant, or if 
                the response is incomplete, the initial determination 
                requiring a payment from the insurer participant shall 
                be based on the best information available to the 
                Commission.
            (4) Commission review, revision, and finalization of 
        initial payment determinations.--
                    (A) Comments from insurer participants.--Not later 
                than 30 days after receiving a notice of initial 
                determination from the Commission, an insurer 
                participant may provide the Commission with additional 
                information to support adjustments to the required 
                payments to reflect severe financial hardship or 
                exceptional circumstances, including the provision of 
                an offset credit for an insurer participant for the 
                amount of any asbestos-related payments it made or was 
                legally obligated to make, including payments released 
                from an escrow, as the result of a bankruptcy 
                judicially confirmed after May 22, 2003, but before the 
                date of enactment of this Act.
                    (B) Additional participants.--If, before the final 
                determination of the Commission, the Commission 
                receives information that an additional person may 
                qualify as an insurer participant, the Commission shall 
                require such person to submit information necessary to 
                determine whether payments from that person should be 
                required, in accordance with the requirements of this 
                subsection.
                    (C) Revision procedures.--The Commission shall 
                adopt procedures for revising initial payments based on 
                information received under subparagraphs (A) and (B), 
                including a provision requiring an offset credit for an 
                insurer participant for the amount of any asbestos-
                related payments it made or was legally obligated to 
                make, including payments released from an escrow, as 
                the result of a bankruptcy confirmed after May 22, 
                2003, but before the date of enactment of this Act.
            (5) Examinations and subpoenas.--
                    (A) Examinations.--The Commission may conduct 
                examinations of the books and records of insurer 
                participants to determine the completeness and accuracy 
                of information submitted, or required to be submitted, 
                to the Commission for purposes of determining 
                participant payments.
                    (B) Subpoenas.--The Commission may request the 
                Attorney General to subpoena persons to compel 
                testimony, records, and other information relevant to 
                its responsibilities under this section. The Attorney 
                General may enforce such subpoena in appropriate 
                proceedings in the United States district court for the 
                district in which the person to whom the subpoena was 
                addressed resides, was served, or transacts business.
            (6) Escrow payments.--Without regard to an insurer 
        participant's payment obligation under this section, any escrow 
        or similar account established before the date of enactment of 
        this Act by an insurer participant in connection with an 
        asbestos trust fund that has not been judicially confirmed by 
        final order by the date of enactment of this Act shall be the 
        property of the insurer participant and returned to that 
        insurer participant.
            (7) Notice to insurer participants of final payment 
        determinations.--Not later than 60 days after the notice of 
        initial determination is sent to the insurer participants, the 
        Commission shall send each insurer participant a notice of 
        final determination.
    (c) Insurer Participants Voluntary Allocation Agreement.--
            (1) In general.--Not later than 30 days after the 
        Commission proposes its rule establishing an allocation 
        methodology under subsection (a)(1), direct insurer 
        participants licensed or domiciled in the United States, other 
        direct insurer participants, reinsurer participants licensed or 
        domiciled in the United States, or other reinsurer 
        participants, may submit an allocation agreement, approved by 
        all of the participants in the applicable group, to the 
        Commission.
            (2) Allocation agreement.--To the extent the participants 
        in any such applicable group voluntarily agree upon an 
        allocation arrangement, any such allocation agreement shall 
        only govern the allocation of payments within that group and 
        shall not determine the aggregate amount due from that group.
            (3) Certification.--The Commission shall determine whether 
        an allocation agreement submitted under subparagraph (A) meets 
        the requirements of this subtitle and, if so, shall certify the 
        agreement as establishing the allocation methodology governing 
        the individual payment obligations of the participants who are 
        parties to the agreement. The authority of the Commission under 
        this subtitle shall, with respect to participants who are 
        parties to a certified allocation agreement, terminate on the 
        day after the Commission certifies such agreement. Under 
        subsection (f), the Administrator shall assume responsibility, 
        if necessary, for calculating the individual payment 
        obligations of participants who are parties to the certified 
        agreement.
    (d) Commission Report.--
            (1) Recipients.--Until the work of the Commission has been 
        completed and the Commission terminated, the Commission shall 
        submit an annual report, containing the information described 
        under paragraph (2), to--
                    (A) the Committee on the Judiciary of the Senate;
                    (B) the Committee on the Judiciary of the House of 
                Representatives; and
                    (C) the Administrator.
            (2) Contents.--The report under paragraph (1) shall state 
        the amount that each insurer participant is required to pay to 
        the Fund, including the payment schedule for such payments.
    (e) Interim Payments.--
            (1) Authority of administrator.--During the period between 
        the date of enactment of this Act and the date when the 
        Commission issues its final determinations of payments, the 
        Administrator shall have the authority to require insurer 
        participants to make interim payments to the Fund to assure 
        adequate funding by insurer participants during such period.
            (2) Amount of interim payments.--During any applicable 
        year, the Administrator may require insurer participants to 
        make aggregate interim payments not to exceed the annual 
        aggregate amount specified in subsection (a)(3)(C).
            (3) Allocation of payments.--Interim payments shall be 
        allocated among individual insurer participants on an equitable 
        basis as determined by the Administrator. All payments required 
        under this subparagraph shall be credited against the 
        participant's ultimate payment obligation to the Fund 
        established by the Commission. If an interim payment exceeds 
        the ultimate payment, the Fund shall pay interest on the amount 
        of the overpayment at a rate determined by the Administrator. 
        If the ultimate payment exceeds the interim payment, the 
        participant shall pay interest on the amount of the 
        underpayment at the same rate. Any participant may seek an 
        exemption from or reduction in any payment required under this 
        subsection under the financial hardship and exceptional 
        circumstance standards established in subsection (a)(3)(D).
            (4) Appeal of interim payment decisions.--A decision by the 
        Administrator to establish an interim payment obligation shall 
        be considered final agency action and reviewable under section 
        303, except that the reviewing court may not stay an interim 
        payment during the pendency of the appeal.
    (f) Transfer of Authority From the Commission to the 
Administrator.--
            (1) In general.--Upon termination of the Commission under 
        section 215, the Administrator shall assume all the 
        responsibilities and authority of the Commission, except that 
        the Administrator shall not have the power to modify the 
        allocation methodology established by the Commission or by 
        certified agreement or to promulgate a rule establishing any 
        such methodology.
            (2) Financial hardship and exceptional circumstance 
        adjustments.--Upon termination of the Commission under section 
        215, the Administrator shall have the authority, upon 
        application by any insurer participant, to make adjustments to 
        annual payments upon the same grounds as provided in subsection 
        (a)(3)(D). Adjustments granted under this subsection shall have 
        a term not to exceed 3 years. An insurer participant may renew 
        its adjustment by demonstrating that it remains justified. Upon 
        the grant of any adjustment, the Administrator shall increase 
        the payments required of all other insurer participants so that 
        there is no reduction in the aggregate payment required of all 
        insurer participants for the applicable years. The increase in 
        an insurer participant's required payment shall be in 
        proportion to such participant's share of the aggregate payment 
        obligation of all insurer participants.
            (3) Financial security requirements.--Whenever an insurer 
        participant's A.M. Best's claims payment rating or Standard and 
        Poor's financial strength rating falls below A-, and until such 
        time as either the insurer participant's A.M. Best's Rating or 
        Standard and Poor's rating is equal to or greater than A-, the 
        Administrator shall have the authority to require that the 
        participating insurer either--
                    (A) pay the present value of its remaining Fund 
                payments at a discount rate determined by the 
                Administrator; or
                    (B) provide an evergreen letter of credit or 
                financial guarantee for future payments issued by an 
                institution with an A.M. Best's claims payment rating 
                or Standard & Poor's financial strength rating of at 
                least A+.
    (g) Judicial Review.--The Commission's rule establishing an 
allocation methodology, its final determinations of payment obligations 
and other final action shall be judicially reviewable as provided in 
title III.

SEC. 213. POWERS OF ASBESTOS INSURERS COMMISSION.

    (a) Rulemaking.--The Commission shall promulgate such rules and 
regulations as necessary to implement its authority under this Act, 
including regulations governing an allocation methodology. Such rules 
and regulations shall be promulgated after providing interested parties 
with the opportunity for notice and comment.
    (b) Hearings.--The Commission may hold such hearings, sit and act 
at such times and places, take such testimony, and receive such 
evidence as the Commission considers advisable to carry out this Act. 
The Commission shall also hold a hearing on any proposed regulation 
establishing an allocation methodology, before the Commission's 
adoption of a final regulation.
    (c) Information From Federal and State Agencies.--The Commission 
may secure directly from any Federal or State department or agency such 
information as the Commission considers necessary to carry out this 
Act. Upon request of the Chairman of the Commission, the head of such 
department or agency shall furnish such information to the Commission.
    (d) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as other 
departments and agencies of the Federal Government.
    (e) Gifts.--The Commission may not accept, use, or dispose of gifts 
or donations of services or property.
    (f) Expert Advice.--In carrying out its responsibilities, the 
Commission may enter into such contracts and agreements as the 
Commission determines necessary to obtain expert advice and analysis.

SEC. 214. PERSONNEL MATTERS.

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

SEC. 215. TERMINATION OF ASBESTOS INSURERS COMMISSION.

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

SEC. 216. EXPENSES AND COSTS OF COMMISSION.

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

           Subtitle C--Asbestos Injury Claims Resolution Fund

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

    (a) Establishment.--There is established in the Office of Asbestos 
Disease Compensation the Asbestos Injury Claims Resolution Fund, which 
shall be available to pay--
            (1) claims for awards for an eligible disease or condition 
        determined under title I;
            (2) claims for reimbursement for medical monitoring 
        determined under title I;
            (3) principal and interest on borrowings under subsection 
        (b);
            (4) the remaining obligations to the asbestos trust of a 
        debtor and the class action trust under section 405(f)(8); and
            (5) administrative expenses to carry out the provisions of 
        this Act.
    (b) Borrowing Authority.--
            (1) In general.--The Administrator is authorized to borrow 
        from time to time amounts as set forth in this subsection, for 
        purposes of enhancing liquidity available to the Fund for 
        carrying out the obligations of the Fund under this Act. The 
        Administrator may authorize borrowing in such form, over such 
        term, with such necessary disclosure to its lenders as will 
        most efficiently enhance the Fund's liquidity.
            (2) Federal financing bank.--In addition to the general 
        authority in paragraph (1), the Administrator may borrow from 
        the Federal Financing Bank in accordance with section 6 of the 
        Federal Financing Bank Act of 1973 (12 U.S.C. 2285), as needed 
        for performance of the Administrator's duties under this Act 
        for the first 5 years.
            (3) Borrowing capacity.--The maximum amount that may be 
        borrowed under this subsection at any given time is the amount 
        that, taking into account all payment obligations related to 
        all previous amounts borrowed in accordance with this 
        subsection and all committed obligations of the Fund at the 
        time of borrowing, can be repaid in full (with interest) in a 
        timely fashion from--
                    (A) the available assets of the Fund as of the time 
                of borrowing; and
                    (B) all amounts expected to be paid by participants 
                during the subsequent 10 years.
            (4) Repayment obligations.--Repayment of monies borrowed by 
        the Administrator under this subsection is limited solely to 
        amounts available in the Asbestos Injury Claims Resolution Fund 
        established under this section.
    (c) Lockbox for Severe Asbestos-Related Injury Claimants.--
            (1) In general.--Within the Fund, the Administrator shall 
        establish the following accounts:
                    (A) A Mesothelioma Account, which shall be used 
                solely to make payments to claimants eligible for an 
                award under the criteria of Level IX.
                    (B) A Lung Cancer Account, which shall be used 
                solely to make payments to claimants eligible for an 
                award under the criteria of Level VIII.
                    (C) A Severe Asbestosis Account, which shall be 
                used solely to make payments to claimants eligible for 
                an award under the criteria of Level V.
                    (D) A Moderate Asbestosis Account, which shall be 
                used solely to make payments to claimants eligible for 
                an award under the criteria of Level IV.
            (2) Allocation.--The Administrator shall allocate to each 
        of the 4 accounts established under paragraph (1) a portion of 
        payments made to the Fund adequate to compensate all 
        anticipated claimants for each account. Within 60 days after 
        the date of enactment of this Act, and periodically during the 
        life of the Fund, the Administrator shall determine an 
        appropriate amount to allocate to each account after consulting 
        appropriate epidemiological and statistical studies.
    (d) Audit Authority.--
            (1) In general.--For the purpose of ascertaining the 
        correctness of any information provided or payments made to the 
        Fund, or determining whether a person who has not made a 
        payment to the Fund was required to do so, or determining the 
        liability of any person for a payment to the Fund, or 
        collecting any such liability, or inquiring into any offense 
        connected with the administration or enforcement of this title, 
        the Administrator is authorized--
                    (A) to examine any books, papers, records, or other 
                data which may be relevant or material to such inquiry;
                    (B) to summon the person liable for a payment under 
                this title, or officer or employee of such person, or 
                any person having possession, custody, or care of books 
                of account containing entries relating to the business 
                of the person liable or any other person the 
                Administrator may deem proper, to appear before the 
                Administrator at a time and place named in the summons 
                and to produce such books, papers, records, or other 
                data, and to give such testimony, under oath, as may be 
                relevant or material to such inquiry; and
                    (C) to take such testimony of the person concerned, 
                under oath, as may be relevant or material to such 
                inquiry.
            (2) False, fraudulent, or fictitious statements or 
        practices.--If the Administrator determines that materially 
        false, fraudulent, or fictitious statements or practices have 
        been submitted or engaged in by persons submitting information 
        to the Administrator or to the Asbestos Insurers Commission or 
        any other person who provides evidence in support of such 
        submissions for purposes of determining payment obligations 
        under this Act, the Administrator may impose a civil penalty 
        not to exceed $10,000 on any person found to have submitted or 
        engaged in a materially false, fraudulent, or fictitious 
        statement or practice under this Act. The Administrator shall 
        promulgate appropriate regulations to implement this paragraph.
    (e) Identity of Certain Defendant Participants; Transparency.--
            (1) Submission of information.--Not later than 60 days 
        after the date of enactment of this Act, any person who, acting 
        in good faith, has knowledge that such person or such person's 
        affiliated group has prior asbestos expenditures of $1,000,000 
        or greater, shall submit to the Administrator--
                    (A) either the name of such person, or such 
                person's ultimate parent; and
                    (B) the likely tier to which such person or 
                affiliated group may be assigned under this Act.
            (2) Publication.--Not later than 20 days after the end of 
        the 60-day period referred to in paragraph (1), the 
        Administrator or Interim Administrator, if the Administrator is 
        not yet appointed, shall publish in the Federal Register a list 
        of submissions required by this subsection, including the name 
        of such persons or ultimate parents and the likely tier to 
        which such persons or affiliated groups may be assigned. After 
        publication of such list, any person who, acting in good faith, 
        has knowledge that any other person has prior asbestos 
        expenditures of $1,000,000 or greater may submit to the 
        Administrator or Interim Administrator information on the 
        identity of that person and the person's prior asbestos 
        expenditures.
    (f) No Private Right of Action.--Except as provided in sections 
203(b)(2)(D)(ii) and 204(f)(3), there shall be no private right of 
action under any Federal or State law against any participant based on 
a claim of compliance or noncompliance with this Act or the involvement 
of any participant in the enactment of this Act.

SEC. 222. MANAGEMENT OF THE FUND.

    (a) In General.--Amounts in the Fund shall be held for the 
exclusive purpose of providing benefits to asbestos claimants and their 
beneficiaries, including those provided in subsection (c), and to 
otherwise defray the reasonable expenses of administering the Fund.
    (b) Investments.--
            (1) In general.--Amounts in the Fund shall be administered 
        and invested with the care, skill, prudence, and diligence, 
        under the circumstances prevailing at the time of such 
        investment, that a prudent person acting in a like capacity and 
        manner would use.
            (2) Strategy.--The Administrator shall invest amounts in 
        the Fund in a manner that enables the Fund to make current and 
        future distributions to or for the benefit of asbestos 
        claimants. In pursuing an investment strategy under this 
        subparagraph, the Administrator shall consider, to the extent 
        relevant to an investment decision or action--
                    (A) the size of the Fund;
                    (B) the nature and estimated duration of the Fund;
                    (C) the liquidity and distribution requirements of 
                the Fund;
                    (D) general economic conditions at the time of the 
                investment;
                    (E) the possible effect of inflation or deflation 
                on Fund assets;
                    (F) the role that each investment or course of 
                action plays with respect to the overall assets of the 
                Fund;
                    (G) the expected amount to be earned (including 
                both income and appreciation of capital) through 
                investment of amounts in the Fund; and
                    (H) the needs of asbestos claimants for current and 
                future distributions authorized under this Act.
    (c) Mesothelioma Research and Treatment Centers.--
            (1) In general.--The Administrator shall provide $1,000,000 
        from the Fund for each of fiscal years 2005 through 2009 for 
        each of up to 10 mesothelioma disease research and treatment 
        centers.
            (2) Requirements.--The Centers shall--
                    (A) be chosen by the Director of the National 
                Institutes of Health;
                    (B) be chosen through competitive peer review;
                    (C) be geographically distributed throughout the 
                United States with special consideration given to areas 
                of high incidence of mesothelioma disease;
                    (D) be closely associated with Department of 
                Veterans Affairs medical centers to provide research 
                benefits and care to veterans who have suffered 
                excessively from mesothelioma;
                    (E) be engaged in research to provide mechanisms 
                for detection and prevention of mesothelioma, 
                particularly in the areas of pain management and cures;
                    (F) be engaged in public education about 
                mesothelioma and prevention, screening, and treatment;
                    (G) be participants in the National Mesothelioma 
                Registry; and
                    (H) be coordinated in their research and treatment 
                efforts with other Centers and institutions involved in 
                exemplary mesothelioma research.
    (d) Bankruptcy Trust Guarantee.--
            (1) In general.--Notwithstanding any other provision of 
        this Act, the Administrator shall have the authority to impose 
        a pro rata surcharge on all participants under this subsection 
        to ensure the liquidity of the Fund, if--
                    (A) the declared assets from 1 or more bankruptcy 
                trusts established under a plan of reorganization 
                confirmed and substantially consummated on or before 
                July 31, 2004, are not available to the Fund because a 
                final judgment that has been entered by a court and is 
                no longer subject to any appeal or review has enjoined 
                the transfer of assets required under section 524(j)(2) 
                of title 11, United States Code (as amended by section 
                402(f) of this Act); and
                    (B) borrowing is insufficient to assure the Fund's 
                ability to meet its obligations under this Act such 
                that the required borrowed amount is likely to increase 
                the risk of termination of this Act under section 405 
                based on reasonable claims projections.
            (2) Allocation.--Any surcharge imposed under this 
        subsection shall be imposed over a period of 5 years on a pro 
        rata basis upon all participants, in accordance with each 
        participant's relative annual liability under this subtitle and 
        subtitle B for those 5 years.
            (3) Certification.--
                    (A) In general.--Before imposing a surcharge under 
                this subsection, the Administrator shall publish a 
                notice in the Federal Register and provide in such 
                notice for a public comment period of 30 days.
                    (B) Contents of notice.--The notice required under 
                subparagraph (A) shall include--
                            (i) information explaining the 
                        circumstances that make a surcharge necessary 
                        and a certification that the requirements under 
                        paragraph (1) are met;
                            (ii) the amount of the declared assets from 
                        any trust established under a plan of 
                        reorganization confirmed and substantially 
                        consummated on or before July 31, 2004, that 
                        was not made, or is no longer, available to the 
                        Fund;
                            (iii) the total aggregate amount of the 
                        necessary surcharge; and
                            (iv) the surcharge amount for each tier and 
                        subtier of defendant participants and for each 
                        insurer participant.
                    (C) Final notice.--The Administrator shall publish 
                a final notice in the Federal Register and provide each 
                participant with written notice of that participant's 
                schedule of payments under this subsection. In no event 
                shall any required surcharge under this subsection be 
                due before 60 days after the Administrator publishes 
                the final notice in the Federal Register and provides 
                each participant with written notice of its schedule of 
                payments.
            (4) Maximum amount.--In no event shall the total aggregate 
        surcharge imposed by the Administrator exceed the lesser of--
                    (A) the total aggregate amount of the declared 
                assets of the trusts established under a plan of 
                reorganization confirmed and substantially consummated 
                prior to July 31, 2004, that are no longer available to 
                the Fund; or
                    (B) $4,000,000,000.
            (5) Declared assets.--
                    (A) In general.--In this subsection, the term 
                ``declared assets'' means--
                            (i) the amount of assets transferred by any 
                        trust established under a plan of 
                        reorganization confirmed and substantially 
                        consummated on or before July 31, 2004, to the 
                        Fund that is required to be returned to that 
                        trust under the final judgment described in 
                        paragraph (1)(A); or
                            (ii) if no assets were transferred by the 
                        trust to the Fund, the amount of assets the 
                        Administrator determines would have been 
                        available for transfer to the Fund from that 
                        trust under section 402(f).
                    (B) Determination.--In making a determination under 
                subparagraph (A)(ii), the Administrator may rely on any 
                information reasonably available, and may request, and 
                use subpoena authority of the Administrator if 
                necessary to obtain, relevant information from any such 
                trust or its trustees.
    (e) Bankruptcy Trust Credits.--
            (1) In general.--Notwithstanding any other provision of 
        this Act, but subject to paragraph (2) of this subsection, the 
        Administrator shall provide a credit toward the aggregate 
        payment obligations under sections 202(a)(2) and 212(a)(2)(A) 
        for assets received by the Fund from any bankruptcy trust 
        established under a plan of reorganization confirmed and 
        substantially consummated after July 31, 2004.
            (2) Allocation of credits.--The Administrator shall 
        allocate, for each such bankruptcy trust, the credits for such 
        assets between the defendant and insurer aggregate payment 
        obligations as follows:
                    (A) Defendant participants.--The aggregate amount 
                that all persons other than insurers contributing to 
                the bankruptcy trust would have been required to pay as 
                Tier I defendants under section 203(b) if the plan of 
                reorganization under which the bankruptcy trust was 
                established had not been confirmed and substantially 
                consummated and the proceeding under chapter 11 of 
                title 11, United States Code, that resulted in the 
                establishment of the bankruptcy trust had remained 
                pending as of the date of enactment of this Act.
                    (B) Insurer participants.--The aggregate amount of 
                all credits to which insurers are entitled to under 
                section 202(c)(4)(A) of the Act.

SEC. 223. ENFORCEMENT OF PAYMENT OBLIGATIONS.

    (a) Default.--If any participant fails to make any payment in the 
amount of and according to the schedule under this Act or as prescribed 
by the Administrator, after demand and a 30-day opportunity to cure the 
default, there shall be a lien in favor of the United States for the 
amount of the delinquent payment (including interest) upon all property 
and rights to property, whether real or personal, belonging to such 
participant.
    (b) Bankruptcy.--In the case of a bankruptcy or insolvency 
proceeding, the lien imposed under subsection (a) shall be treated in 
the same manner as a lien for taxes due and owing to the United States 
for purposes of the provisions of title 11, United States Code, or 
section 3713(a) of title 31, United States Code. The United States 
Bankruptcy Court shall have jurisdiction over any issue or controversy 
regarding lien priority and lien perfection arising in a bankruptcy 
case due to a lien imposed under subsection (a).
    (c) Civil Action.--
            (1) In general.--In any case in which there has been a 
        refusal or failure to pay any liability imposed under this Act, 
        the Administrator may bring a civil action in the United States 
        District Court for the District of Columbia, or any other 
        appropriate lawsuit or proceeding outside of the United 
        States--
                    (A) to enforce the liability and any lien of the 
                United States imposed under this section;
                    (B) to subject any property of the participant, 
                including any property in which the participant has any 
                right, title, or interest to the payment of such 
                liability; or
                    (C) for temporary, preliminary, or permanent 
                relief.
            (2) Additional penalties.--In any action under paragraph 
        (1) in which the refusal or failure to pay was willful, the 
        Administrator may seek recovery--
                    (A) of punitive damages;
                    (B) of the costs of any civil action under this 
                subsection, including reasonable fees incurred for 
                collection, expert witnesses, and attorney's fees; and
                    (C) in addition to any other penalty, of a fine 
                equal to the total amount of the liability that has not 
                been collected.
    (d) Enforcement Authority as to Insurer Participants.--
            (1) In general.--In addition to or in lieu of the 
        enforcement remedies described in subsection (c), the 
        Administrator may seek to recover amounts in satisfaction of a 
        payment not timely paid by an insurer participant under the 
        procedures under this subsection.
            (2) Subrogation.--To the extent required to establish 
        personal jurisdiction over nonpaying insurer participants, the 
        Administrator shall be deemed to be subrogated to the 
        contractual rights of participants to seek recovery from 
        nonpaying insuring participants that are domiciled outside the 
        United States under the policies of liability insurance or 
        contracts of liability reinsurance or retrocessional 
        reinsurance applicable to asbestos claims, and the 
        Administrator may bring an action or an arbitration against the 
        nonpaying insurer participants under the provisions of such 
        policies and contracts, provided that--
                    (A) any amounts collected under this subsection 
                shall not increase the amount of deemed erosion 
                allocated to any policy or contract under section 404, 
                or otherwise reduce coverage available to a 
                participant; and
                    (B) subrogation under this subsection shall have no 
                effect on the validity of the insurance policies or 
                reinsurance, and any contrary State law is expressly 
                preempted.
            (3) Recoverability of contribution.--For purposes of this 
        subsection--
                    (A) all contributions to the Fund required of a 
                participant shall be deemed to be sums legally required 
                to be paid for bodily injury resulting from exposure to 
                asbestos;
                    (B) all contributions to the Fund required of any 
                participant shall be deemed to be a single loss arising 
                from a single occurrence under each contract to which 
                the Administrator is subrogated; and
                    (C) with respect to reinsurance contracts, all 
                contributions to the Fund required of a participant 
                shall be deemed to be payments to a single claimant for 
                a single loss.
            (4) No credit or offset.--In any action brought under this 
        subsection, the nonpaying insurer or reinsurer shall be 
        entitled to no credit or offset for amounts collectible or 
        potentially collectible from any participant nor shall such 
        defaulting participant have any right to collect any sums 
        payable under this section from any participant.
            (5) Cooperation.--Insureds and cedents shall cooperate with 
        the Administrator's reasonable requests for assistance in any 
        such proceeding. The positions taken or statements made by the 
        Administrator in any such proceeding shall not be binding on or 
        attributed to the insureds or cedents in any other proceeding. 
        The outcome of such a proceeding shall not have a preclusive 
        effect on the insureds or cedents in any other proceeding and 
        shall not be admissible against any subrogee under this 
        section. The Administrator shall have the authority to settle 
        or compromise any claims against a nonpaying insurer 
        participant under this subsection.
    (e) Bar on United States Business.--If any direct insurer or 
reinsurer refuses to furnish any information requested by or to pay any 
contribution required by this Act, then, in addition to any other 
penalties imposed by this Act, the Administrator may issue an order 
barring such entity and its affiliates from insuring risks located 
within the United States or otherwise doing business within the United 
States. Insurer participants or their affiliates seeking to obtain a 
license from any State to write any type of insurance shall be barred 
from obtaining any such license until payment of all contributions 
required as of the date of license application.
    (f) Credit for Reinsurance.--If the Administrator determines that 
an insurer participant that is a reinsurer is in default in paying any 
required contribution or otherwise not in compliance with this Act, the 
Administrator may issue an order barring any direct insurer participant 
from receiving credit for reinsurance purchased from the defaulting 
reinsurer. Any State law governing credit for reinsurance to the 
contrary is preempted.
    (g) Defense Limitation.--In any proceeding under this section, the 
participant shall be barred from bringing any challenge to any 
determination of the Administrator or the Asbestos Insurers Commission 
regarding its liability under this Act, or to the constitutionality of 
this Act or any provision thereof, if such challenge could have been 
made during the review provided under section 204(i)(10), or in a 
judicial review proceeding under section 303.
    (h) Deposit of Funds.--
            (1) In general.--Any funds collected under subsection 
        (c)(2) (A) or (C) shall be--
                    (A) deposited in the Fund; and
                    (B) used only to pay--
                            (i) claims for awards for an eligible 
                        disease or condition determined under title I; 
                        or
                            (ii) claims for reimbursement for medical 
                        monitoring determined under title I.
            (2) No effect on other liabilities.--The imposition of a 
        fine under subsection (c)(2)(C) shall have no effect on--
                    (A) the assessment of contributions under subtitles 
                A and B; or
                    (B) any other provision of this Act.
    (i) Property of the Estate.--Section 541(b) of title 11, United 
States Code, is amended--
            (1) in paragraph (4)(B)(ii), by striking ``or'' at the end;
            (2) in paragraph (5), by striking ``prohibition.'' and 
        inserting ``prohibition; or''; and
            (3) by inserting after paragraph (5) and before the last 
        undesignated sentence the following:
            ``(6) the value of any pending claim against or the amount 
        of an award granted from the Asbestos Injury Claims Resolution 
        Fund established under the Fairness in Asbestos Injury 
        Resolution Act of 2005.''.

SEC. 224. INTEREST ON UNDERPAYMENT OR NONPAYMENT.

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

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

    (a) In General.--The Administrator shall establish a program for 
the education, consultation, medical screening, and medical monitoring 
of persons with exposure to asbestos. The program shall be funded by 
the Fund.
    (b) Outreach and Education.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Administrator shall establish an 
        outreach and education program, including a website designed to 
        provide information about asbestos-related medical conditions 
        to members of populations at risk of developing such 
        conditions.
            (2) Information.--The information provided under paragraph 
        (1) shall include information about--
                    (A) the signs and symptoms of asbestos-related 
                medical conditions;
                    (B) the value of appropriate medical screening 
                programs; and
                    (C) actions that the individuals can take to reduce 
                their future health risks related to asbestos exposure.
            (3) Contracts.--Preference in any contract under this 
        subsection shall be given to providers that are existing 
        nonprofit organizations with a history and experience of 
        providing occupational health outreach and educational programs 
        for individuals exposed to asbestos.
    (c) Medical Screening Program.--
            (1) Establishment of program.--Not sooner than 18 months or 
        later than 24 months after the Administrator certifies that the 
        Fund is fully operational and processing claims at a reasonable 
        rate, the Administrator shall adopt guidelines establishing a 
        medical screening program for individuals at high risk of 
        asbestos-related disease resulting from an asbestos-related 
        disease. In promulgating such guidelines, the Administrator 
        shall consider the views of the Advisory Committee on Asbestos 
        Disease Compensation, the Medical Advisory Committee, and the 
        public.
            (2) Eligibility criteria.--
                    (A) In general.--The guidelines promulgated under 
                this subsection shall establish criteria for 
                participation in the medical screening program.
                    (B) Considerations.--In promulgating eligibility 
                criteria the Administrator shall take into 
                consideration all factors relevant to the individual's 
                effective cumulative exposure to asbestos, including--
                            (i) any industry in which the individual 
                        worked;
                            (ii) the individual's occupation and work 
                        setting;
                            (iii) the historical period in which 
                        exposure took place;
                            (iv) the duration of the exposure;
                            (v) the intensity and duration of non-
                        occupational exposures; and
                            (vi) any other factors that the 
                        Administrator determines relevant.
            (3) Protocols.--The guidelines developed under this 
        subsection shall establish protocols for medical screening, 
        which shall include--
                    (A) administration of a health evaluation and work 
                history questionnaire;
                    (B) an evaluation of smoking history;
                    (C) a physical examination by a qualified physician 
                with a doctor-patient relationship with the individual;
                    (D) a chest x-ray read by a certified B-reader as 
                defined under section 121(a)(4); and
                    (E) pulmonary function testing as defined under 
                section 121(a)(13).
            (4) Frequency.--The Administrator shall establish the 
        frequency with which medical screening shall be provided or be 
        made available to eligible individuals, which shall be not less 
        than every 5 years.
            (5) Provision of services.--The Administrator shall provide 
        medical screening to eligible individuals directly or by 
        contract with another agency of the Federal Government, with 
        State or local governments, or with private providers of 
        medical services. The Administrator shall establish strict 
        qualifications for the providers of such services, and shall 
        periodically audit the providers of services under this 
        subsection, to ensure their integrity, high degree of 
        competence, and compliance with all applicable technical and 
        professional standards. No provider of medical screening 
        services may have earned more than 15 percent of their income 
        from the provision of services of any kind in connection with 
        asbestos litigation in any of the 3 years preceding the date of 
        enactment of this Act. All contracts with providers of medical 
        screening services under this subsection shall contain 
        provisions allowing the Administrator to terminate such 
        contracts for cause if the Administrator determines that the 
        service provider fails to meet the qualifications established 
        under this subsection.
            (6) Limitation of compensation for services.--The 
        compensation required to be paid to a provider of medical 
        screening services for such services furnished to an eligible 
        individual shall be limited to the amount that would be 
        reimbursed at the time of the furnishing of such services under 
        title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) 
        for similar services if--
                    (A) the individual were entitled to benefits under 
                part A of such title and enrolled under part B of such 
                title; and
                    (B) such services are covered under title XVIII of 
                the Social Security Act (42 U.S.C. 1395 et seq.).
            (7) Funding; periodic review.--
                    (A) Funding.--The Administrator shall make such 
                funds available from the Fund to implement this 
                section, but not more than $30,000,000 each year in 
                each of the 5 years following the effective date of the 
                medical screening program. Notwithstanding the 
                preceding sentence, the Administrator shall suspend the 
                operation of the program or reduce its funding level if 
                necessary to preserve the solvency of the Fund and to 
                prevent the sunset of the overall program under section 
                405(f).
                    (B) Review.--The Administrator's first annual 
                report under section 405 following the close of the 4th 
                year of operation of the medical screening program 
                shall include an analysis of the usage of the program, 
                its cost and effectiveness, its medical value, and the 
                need to continue that program for an additional 5-year 
                period. The Administrator shall also recommend to 
                Congress any improvements that may be required to make 
                the program more effective, efficient, and economical, 
                and shall recommend a funding level for the program for 
                the 5 years following the period of initial funding 
                referred to under subparagraph (A).
    (d) Limitation.--In no event shall the total amount allocated to 
the medical screening program established under this subsection over 
the lifetime of the Fund exceed $600,000,000.
    (e) Medical Monitoring Program and Protocols.--
            (1) In general.--The Administrator shall establish 
        procedures for a medical monitoring program for persons exposed 
        to asbestos who have been approved for level I compensation 
        under section 131.
            (2) Procedures.--The procedures for medical monitoring 
        shall include--
                    (A) specific medical tests to be provided to 
                eligible individuals and the periodicity of those 
                tests, which shall initially be provided every 3 years 
                and include--
                            (i) administration of a health evaluation 
                        and work history questionnaire;
                            (ii) physical examinations, including blood 
                        pressure measurement, chest examination, and 
                        examination for clubbing;
                            (iii) AP and lateral chest x-ray; and
                            (iv) spirometry performed according to ATS 
                        standards;
                    (B) qualifications of medical providers who are to 
                provide the tests required under subparagraph (A); and
                    (C) administrative provisions for reimbursement 
                from the Fund of the costs of monitoring eligible 
                claimants, including the costs associated with the 
                visits of the claimants to physicians in connection 
                with medical monitoring, and with the costs of 
                performing and analyzing the tests.
            (3) Preferences.--
                    (A) In general.--In administering the monitoring 
                program under this subsection, preference shall be 
                given to medical and program providers with--
                            (i) a demonstrated capacity for 
                        identifying, contacting, and evaluating 
                        populations of workers or others previously 
                        exposed to asbestos; and
                            (ii) experience in establishing networks of 
                        medical providers to conduct medical screening 
                        and medical monitoring examinations.
                    (B) Provision of lists.--Claimants that are 
                eligible to participate in the medical monitoring 
                program shall be provided with a list of approved 
                providers in their geographic area at the time such 
                claimants become eligible to receive medical 
                monitoring.
    (f) Contracts.--The Administrator may enter into contracts with 
qualified program providers that would permit the program providers to 
undertake large-scale medical screening and medical monitoring programs 
by means of subcontracts with a network of medical providers, or other 
health providers.
    (g) Review.--Not later than 5 years after the date of enactment of 
this Act, and every 5 years thereafter, the Administrator shall review, 
and if necessary update, the protocols and procedures established under 
this section.

                       TITLE III--JUDICIAL REVIEW

SEC. 301. JUDICIAL REVIEW OF RULES AND REGULATIONS.

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

SEC. 302. JUDICIAL REVIEW OF AWARD DECISIONS.

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

SEC. 303. JUDICIAL REVIEW OF PARTICIPANTS' ASSESSMENTS.

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

SEC. 304. OTHER JUDICIAL CHALLENGES.

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

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

    (a) No Stays.--No court may issue a stay of payment by any party 
into the Fund pending its final judgment.
    (b) Exclusivity of Review.--An action of the Administrator or the 
Asbestos Insurers Commission for which review could have been obtained 
under section 301, 302, or 303 shall not be subject to judicial review 
in any other proceeding.
    (c) Constitutional Review.--
            (1) In general.--Notwithstanding any other provision of 
        law, any interlocutory or final judgment, decree, or order of a 
        Federal court holding this Act, or any provision or application 
        thereof, unconstitutional shall be reviewable as a matter of 
        right by direct appeal to the Supreme Court.
            (2) Period for filing appeal.--Any such appeal shall be 
        filed not more than 30 days after entry of such judgment, 
        decree, or order.
            (3) Repayment to asbestos trust and class action trust.--If 
        the transfer of the assets of any asbestos trust of a debtor or 
        any class action trust (or this Act as a whole) is held to be 
        unconstitutional or otherwise unlawful, the Fund shall transfer 
        the remaining balance of such assets (determined under section 
        405(f)(1)(A)(iii)) back to the appropriate asbestos trust or 
        class action trust within 90 days after final judicial action 
        on the legal challenge, including the exhaustion of all 
        appeals.

                   TITLE IV--MISCELLANEOUS PROVISIONS

SEC. 401. FALSE INFORMATION.

    (a) In General.--Chapter 63 of title 18, United States Code, is 
amended by adding at the end the following:
``Sec. 1348. Fraud and false statements in connection with 
              participation in Asbestos Injury Claims Resolution Fund
    ``(a) Fraud Relating to Asbestos Injury Claims Resolution Fund.--
Whoever knowingly and willfully executes, or attempts to execute, a 
scheme or artifice to defraud the Office of Asbestos Disease 
Compensation or the Asbestos Insurers Commission under title II of the 
Fairness in Asbestos Injury Resolution Act of 2005 shall be fined under 
this title or imprisoned not more than 20 years, or both.
    ``(b) False Statement Relating to Asbestos Injury Claims Resolution 
Fund.--Whoever, in any matter involving the Office of Asbestos Disease 
Compensation or the Asbestos Insurers Commission, knowingly and 
willfully--
            ``(1) falsifies, conceals, or covers up by any trick, 
        scheme, or device a material fact;
            ``(2) makes any materially false, fictitious, or fraudulent 
        statements or representations; or
            ``(3) makes or uses any false writing or document knowing 
        the same to contain any materially false, fictitious, or 
        fraudulent statement or entry, in connection with the award of 
        a claim or the determination of a participant's payment 
        obligation under title I or II of the Fairness in Asbestos 
        Injury Resolution Act of 2005 shall be fined under this title 
        or imprisoned not more than 10 years, or both.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 63 of title 18, United States Code, is amended by adding at the 
end the following:

        ``1348. Fraud and false statements in connection with 
                            participation in Asbestos Injury Claims 
                            Resolution Fund.''.

SEC. 402. EFFECT ON BANKRUPTCY LAWS.

    (a) No Automatic Stay.--Section 362(b) of title 11, United States 
Code, is amended--
            (1) in paragraph (17), by striking ``or'' at the end;
            (2) in paragraph (18), by striking the period at the end 
        and inserting ``; or''; and
            (3) by inserting after paragraph (18) the following:
            ``(19) under subsection (a) of this section of the 
        enforcement of any payment obligations under section 204 of the 
        Fairness in Asbestos Injury Resolution Act of 2005, against a 
        debtor, or the property of the estate of a debtor, that is a 
        participant (as that term is defined in section 3 of that 
        Act).''.
    (b) Assumption of Executory Contract.--Section 365 of title 11, 
United States Code, is amended by adding at the end the following:
    ``(p) If a debtor is a participant (as that term is defined in 
section 3 of the Fairness in Asbestos Injury Resolution Act of 2005), 
the trustee shall be deemed to have assumed all executory contracts 
entered into by the participant under section 204 of that Act. The 
trustee may not reject any such executory contract.''.
    (c) Allowed Administrative Expenses.--Section 503 of title 11, 
United States Code, is amended by adding at the end the following:
    ``(c)(1) Claims or expenses of the United States, the Attorney 
General, or the Administrator (as that term is defined in section 3 of 
the Fairness in Asbestos Injury Resolution Act of 2005) based upon the 
asbestos payment obligations of a debtor that is a Participant (as that 
term is defined in section 3 of that Act), shall be paid as an allowed 
administrative expense. The debtor shall not be entitled to either 
notice or a hearing with respect to such claims.
    ``(2) For purposes of paragraph (1), the term `asbestos payment 
obligation' means any payment obligation under title II of the Fairness 
in Asbestos Injury Resolution Act of 2005.''.
    (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 2005) of the debtor's payment obligations assessed against the 
participant under title II of that Act.''.
    (e) Payment.--Section 524 of title 11, United States Code, is 
amended by adding at the end the following:
    ``(i) Participant Debtors.--
            ``(1) In general.--Paragraphs (2) and (3) shall apply to a 
        debtor who--
                    ``(A) is a participant that has made prior asbestos 
                expenditures (as such terms are defined in the Fairness 
                in Asbestos Injury Resolution Act of 2005); 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 
                        2005; or
                            ``(ii) at any time during the 1-year period 
                        preceding the date of enactment of that Act.
            ``(2) Tier i debtors.--A debtor that has been assigned to 
        Tier I under section 202 of the Fairness in Asbestos Injury 
        Resolution Act of 2005, 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 2005 shall--
                    ``(A) constitute costs and expenses of 
                administration of a case under section 503 of this 
                title;
                    ``(B) notwithstanding any case pending under this 
                title, be payable in accordance with section 202 of 
                that Act;
                    ``(C) not be stayed;
                    ``(D) not be affected as to enforcement or 
                collection by any stay or injunction of any court; and
                    ``(E) not be impaired or discharged in any current 
                or future case under this title.''.
    (f) Treatment of Trusts.--Section 524 of title 11, United States 
Code, as amended by this Act, is amended by adding at the end the 
following:
    ``(j) Asbestos Trusts.--
            ``(1) In general.--A trust shall assign a portion of the 
        corpus of the trust to the Asbestos Injury Claims Resolution 
        Fund (referred to in this subsection as the `Fund') as 
        established under the Fairness in Asbestos Injury Resolution 
        Act of 2005 if the trust qualifies as a `trust' under section 
        201 of that Act.
            ``(2) Transfer of trust assets.--
                    ``(A) In general.--
                            ``(i) Except as provided under 
                        subparagraphs (B), (C), and (E), the assets in 
                        any trust established to provide compensation 
                        for asbestos claims (as defined in section 3 of 
                        the Fairness in Asbestos Injury Resolution Act 
                        of 2005) shall be transferred to the Fund not 
                        later than 6 months after the date of enactment 
                        of the Fairness in Asbestos Injury Resolution 
                        Act of 2005 or 30 days following funding of a 
                        trust established under a reorganization plan 
                        subject to section 202(c) of that Act. Except 
                        as provided under subparagraph (B), the 
                        Administrator of the Fund shall accept such 
                        assets and utilize them for any purposes of the 
                        Fund under section 221 of such Act, including 
                        the payment of claims for awards under such Act 
                        to beneficiaries of the trust from which the 
                        assets were transferred.
                            ``(ii) Notwithstanding any other provision 
                        of Federal or State law, no liability of any 
                        kind may be imposed on a trustee of a trust for 
                        transferring assets to the Fund in accordance 
                        with clause (i).
                    ``(B) Authority to refuse assets.--The 
                Administrator of the Fund may refuse to accept any 
                asset that the Administrator determines may create 
                liability for the Fund in excess of the value of the 
                asset.
                    ``(C) Allocation of trust assets.--If a trust under 
                subparagraph (A) has beneficiaries with claims that are 
                not asbestos claims, the assets transferred to the Fund 
                under subparagraph (A) shall not include assets 
                allocable to such beneficiaries. The trustees of any 
                such trust shall determine the amount of such trust 
                assets to be reserved for the continuing operation of 
                the trust in processing and paying claims that are not 
                asbestos claims. The trustees shall demonstrate to the 
                satisfaction of the Administrator, or by clear and 
                convincing evidence in a proceeding brought before the 
                United States District Court for the District of 
                Columbia in accordance with paragraph (4), that the 
                amount reserved is properly allocable to claims other 
                than asbestos claims.
                    ``(D) Sale of fund assets.--The investment 
                requirements under section 222 of the Fairness in 
                Asbestos Injury Resolution Act of 2005 shall not be 
                construed to require the Administrator of the Fund to 
                sell assets transferred to the Fund under subparagraph 
                (A).
                    ``(E) Liquidated claims.--Except as specifically 
                provided in this subparagraph, all asbestos claims 
                against a trust are superseded and preempted as of the 
                date of enactment of the Fairness in Asbestos Injury 
                Resolution Act of 2005, and a trust shall not make any 
                payment relating to asbestos claims after that date. 
                If, in the ordinary course and the normal and usual 
                administration of the trust consistent with past 
                practices, a trust had before the date of enactment of 
                the Fairness in Asbestos Injury Resolution Act of 2005, 
                made all determinations necessary to entitle an 
                individual claimant to a noncontingent cash payment 
                from the trust, the trust shall (i) make any lump-sum 
                cash payment due to that claimant, and (ii) make or 
                provide for all remaining noncontingent payments on any 
                award being paid or scheduled to be paid on an 
                installment basis, in each case only to the same extent 
                that the trust would have made such cash payments in 
                the ordinary course and consistent with past practices 
                before enactment of that Act. A trust shall not make 
                any payment in respect of any alleged contingent right 
                to recover any greater amount than the trust had 
                already paid, or had completed all determinations 
                necessary to pay, to a claimant in cash in accordance 
                with its ordinary distribution procedures in effect as 
                of June 1, 2003.
            ``(3) Injunction.--
                    ``(A) In general.--Any injunction issued as part of 
                the formation of a trust described in paragraph (1) 
                shall remain in full force and effect. No court, 
                Federal or State, may enjoin the transfer of assets by 
                a trust to the Fund in accordance with this subsection 
                pending resolution of any litigation challenging such 
                transfer or the validity of this subsection or of any 
                provision of the Fairness in Asbestos Injury Resolution 
                Act of 2005, and an interlocutory order denying such 
                relief shall not be subject to immediate appeal under 
                section 1291(a) of title 28.
                    ``(B) Availability of fund assets.--Notwithstanding 
                any other provision of law, once such a transfer has 
                been made, the assets of the Fund shall be available to 
                satisfy any final judgment entered in such an action 
                and such transfer shall no longer be subject to any 
                appeal or review--
                            ``(i) declaring that the transfer effected 
                        a taking of a right or property for which an 
                        individual is constitutionally entitled to just 
                        compensation; or
                            ``(ii) requiring the transfer back to a 
                        trust of any or all assets transferred by that 
                        trust to the Fund.
            ``(4) Jurisdiction.--Solely for purposes of implementing 
        this subsection, personal jurisdiction over every covered 
        trust, the trustees thereof, and any other necessary party, and 
        exclusive subject matter jurisdiction over every question 
        arising out of or related to this subsection, shall be vested 
        in the United States District Court for the District of 
        Columbia. Notwithstanding any other provision of law, including 
        section 1127 of this title, that court may make any order 
        necessary and appropriate to facilitate prompt compliance with 
        this subsection, including assuming jurisdiction over and 
        modifying, to the extent necessary, any applicable confirmation 
        order or other order with continuing and prospective 
        application to a covered trust. The court may also resolve any 
        related challenge to the constitutionality of this subsection 
        or of its application to any trust, trustee, or individual 
        claimant. The Administrator of the Fund may bring an action 
        seeking such an order or modification, under the standards of 
        rule 60(b) of the Federal Rules of Civil Procedure or 
        otherwise, and shall be entitled to intervene as of right in 
        any action brought by any other party seeking interpretation, 
        application, or invalidation of this subsection. Any order 
        denying relief that would facilitate prompt compliance with the 
        transfer provisions of this subsection shall be subject to 
        immediate appeal under section 304 of the Fairness in Asbestos 
        Injury Resolution Act of 2005. Notwithstanding any other 
        provision of this paragraph, for purposes of implementing the 
        sunset provisions of section 402(f) of such Act which apply to 
        asbestos trusts and the class action trust, the bankruptcy 
        court or United States district court having jurisdiction over 
        any such trust as of the date of enactment of such Act shall 
        retain such jurisdiction.''.
    (g) No Avoidance of Transfer.--Section 546 of title 11, United 
States Code, is amended by adding at the end the following:
    ``(h) Notwithstanding the rights and powers of a trustee under 
sections 544, 545, 547, 548, 549, and 550 of this title, if a debtor is 
a participant (as that term is defined in section 3 of the Fairness in 
Asbestos Injury Resolution Act of 2005), the trustee may not avoid a 
transfer made by the debtor under its payment obligations under section 
202 or 203 of that Act.''.
    (h) Confirmation of Plan.--Section 1129(a) of title 11, United 
States Code, is amended by adding at the end the following:
            ``(14) If the debtor is a participant (as that term is 
        defined in section 3 of the Fairness in Asbestos Injury 
        Resolution Act of 2005), the plan provides for the continuation 
        after its effective date of payment of all payment obligations 
        under title II of that Act.''.
    (i) Effect on Insurance Receivership Proceedings.--
            (1) Lien.--In an insurance receivership proceeding 
        involving a direct insurer, reinsurer or runoff participant, 
        there shall be a lien in favor of the Fund for the amount of 
        any assessment and any such lien shall be given priority over 
        all other claims against the participant in receivership, 
        except for the expenses of administration of the receivership 
        and the perfected claims of the secured creditors. Any State 
        law that provides for priorities inconsistent with this 
        provision is preempted by this Act.
            (2) Payment of assessment.--Payment of any assessment 
        required by this Act shall not be subject to any automatic or 
        judicially entered stay in any insurance receivership 
        proceeding. This Act shall preempt any State law requiring that 
        payments by a direct insurer, reinsurer or runoff participant 
        in an insurance receivership proceeding be approved by a court, 
        receiver or other person. Payments of assessments by any direct 
        insurer or reinsurer participant under this Act shall not be 
        subject to the avoidance powers of a receiver or a court in or 
        relating to an insurance receivership proceeding.
    (j) Standing in Bankruptcy Proceedings.--The Administrator shall 
have standing in any bankruptcy case involving a debtor participant. No 
bankruptcy court may require the Administrator to return property 
seized to satisfy obligations to the Fund.

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

    (a) Effect on Federal and State Law.--The provisions of this Act 
shall supersede any Federal or State law insofar as such law may relate 
to any asbestos claim, including any claim described under subsection 
(e)(2).
    (b) Effect on Silica Claims.--
            (1) In general.--
                    (A) Rule of construction.--Nothing in this Act 
                shall be construed to preempt, bar, or otherwise 
                preclude any personal injury claim attributable to 
                exposure to silica as to which the plaintiff--
                            (i) pleads with particularity and 
                        establishes by a preponderance of evidence 
                        either that--
                                    (I) no claim has been asserted or 
                                filed by or with respect to the exposed 
                                person in any forum for any asbestos-
                                related condition and the exposed 
                                person (or another claiming on behalf 
                                of or through the exposed person) is 
                                not eligible for any monetary award 
                                under this Act; or
                                    (II)(aa) the exposed person suffers 
                                or has suffered a functional impairment 
                                that was caused by exposure to silica; 
                                and
                                    (bb) asbestos exposure was not a 
                                substantial contributing factor to such 
                                functional impairment; and
                            (ii) satisfies the requirements of 
                        paragraph (2) .
                    (B) Preemption.--Claims attributable to exposure to 
                silica that fail to meet the requirements of 
                subparagraph (A) shall be preempted by this Act.
            (2) Required evidence.--
                    (A) In general.--In any claim to which paragraph 
                (1) applies, the initial pleading (or, for claims 
                pending on the date of enactment of this Act, an 
                amended pleading to be filed within 60 days after such 
                date, but not later than 60 days before trial, shall 
                plead with particularity the elements of subparagraph 
                (A)(i)(I) or (II) and shall be accompanied by the 
                information described under subparagraph (B)(i) through 
                (iv).
                    (B) Pleadings.--If the claim pleads the elements of 
                paragraph (1)(A)(i)(II) and by the information 
                described under clauses (i) through (iv) of this 
                subparagraph if the claim pleads the elements of 
                paragraph (1)(A)(i)(I)--
                            (i) admissible evidence, including at a 
                        minimum, a B-reader's report, the underlying x-
                        ray film and such other evidence showing that 
                        the claim may be maintained and is not 
                        preempted under paragraph (1);
                            (ii) notice of any previous lawsuit or 
                        claim for benefits in which the exposed person, 
                        or another claiming on behalf of or through the 
                        injured person, asserted an injury or 
                        disability based wholly or in part on exposure 
                        to asbestos;
                            (iii) if known by the plaintiff after 
                        reasonable inquiry by the plaintiff or his 
                        representative, the history of the exposed 
                        person's exposure, if any, to asbestos; and
                            (iv) copies of all medical and laboratory 
                        reports pertaining to the exposed person that 
                        refer to asbestos or asbestos exposure.
    (c) Superseding Provisions.--
            (1) In general.--Except as provided under paragraph (3), 
        any agreement, understanding, or undertaking by any person or 
        affiliated group with respect to the treatment of any asbestos 
        claim that requires future performance by any party, insurer of 
        such party, settlement administrator, or escrow agent shall be 
        superseded in its entirety by this Act.
            (2) No force or effect.--Except as provided under paragraph 
        (3), any such agreement, understanding, or undertaking by any 
        such person or affiliated group shall be of no force or effect, 
        and no person shall have any rights or claims with respect to 
        any such agreement, understanding, or undertaking.
            (3) Exception.--
                    (A) In general.--Except as provided in section 
                202(f), nothing in this Act shall abrogate a binding 
                and legally enforceable written settlement agreement 
                between any defendant participant or its insurer and a 
                specific named plaintiff with respect to the settlement 
                of an asbestos claim of the plaintiff if--
                            (i) before the date of enactment of this 
                        Act, the settlement agreement was executed 
                        directly by the settling defendant or the 
                        settling insurer and the individual plaintiff, 
                        or on behalf of the plaintiff where the 
                        plaintiff is incapacitated and the settlement 
                        agreement is signed by an authorized legal 
                        representative;
                            (ii) the settlement agreement contains an 
                        express obligation by the settling defendant or 
                        settling insurer to make a future direct 
                        monetary payment or payments in a fixed amount 
                        or amounts to the individual plaintiff; and
                            (iii) within 30 days after the date of 
                        enactment of this Act, or such shorter time 
                        period specified in the settlement agreement, 
                        all conditions to payment under the settlement 
                        agreement have been fulfilled, so that the only 
                        remaining performance due under the settlement 
                        agreement is the payment or payments by the 
                        settling defendant or the settling insurer.
                    (B) Bankruptcy-related agreements.--The exception 
                set forth in this paragraph shall not apply to any 
                bankruptcy-related agreement.
                    (C) Collateral source.--Any settlement payment 
                under this section is a collateral source if the 
                plaintiff seeks recovery from the Fund.
                    (D) Abrogation.--Nothing in subparagraph (A) shall 
                abrogate a settlement agreement otherwise satisfying 
                the requirements of that subparagraph if such 
                settlement agreement expressly anticipates the 
                enactment of this Act and provides for the effects of 
                this Act.
                    (E) Health care insurance or expenses 
                settlements.--Nothing in this Act shall abrogate or 
                terminate an otherwise fully enforceable settlement 
                agreement which was executed before the date of 
                enactment of this Act directly by the settling 
                defendant or the settling insurer and a specific named 
                plaintiff to pay the health care insurance or health 
                care expenses of the plaintiff.
    (d) Exclusive Remedy.--
            (1) In general.--Except as provided under paragraph (2), 
        the remedies provided under this Act shall be the exclusive 
        remedy for any asbestos claim, including any claim described in 
        subsection (e)(2), under any Federal or State law.
            (2) Civil actions at trial.--
                    (A) In general.--This Act shall not apply to any 
                asbestos claim that--
                            (i) is a civil action filed in a Federal or 
                        State court (not including a filing in a 
                        bankruptcy court);
                            (ii) is not part of a consolidation of 
                        actions or a class action; and
                            (iii) on the date of enactment of this 
                        Act--
                                    (I) in the case of a civil action 
                                which includes a jury trial, is before 
                                the jury after its impanelling and 
                                commencement of presentation of 
                                evidence, but before its deliberations;
                                    (II) in the case of a civil action 
                                which includes a trial in which a judge 
                                is the trier of fact, is at the 
                                presentation of evidence at trial; or
                                    (III) a verdict, final order, or 
                                final judgment has been entered by a 
                                trial court.
                    (B) Nonapplicability.--This Act shall not apply to 
                a civil action described under subparagraph (A) 
                throughout the final disposition of the action.
    (e) Bar on Asbestos Claims.--
            (1) In general.--No asbestos claim (including any claim 
        described in paragraph (2)) may be pursued, and no pending 
        asbestos claim may be maintained, in any Federal or State 
        court, except as provided under subsection (d)(2).
            (2) Certain specified claims.--
                    (A) In general.--Subject to section 404 (d) and 
                (e)(3) of this Act, no claim may be brought or pursued 
                in any Federal or State court or insurance receivership 
                proceeding--
                            (i) relating to any default, confessed or 
                        stipulated judgment on an asbestos claim if the 
                        judgment debtor expressly agreed, in writing or 
                        otherwise, not to contest the entry of judgment 
                        against it and the plaintiff expressly agreed, 
                        in writing or otherwise, to seek satisfaction 
                        of the judgment only against insurers or in 
                        bankruptcy;
                            (ii) relating to the defense, 
                        investigation, handling, litigation, 
                        settlement, or payment of any asbestos claim by 
                        any participant, including claims for bad faith 
                        or unfair or deceptive claims handling or 
                        breach of any duties of good faith; or
                            (iii) arising out of or relating to the 
                        asbestos-related injury of any individual and--
                                    (I) asserting any conspiracy, 
                                concert of action, aiding or abetting, 
                                act, conduct, statement, misstatement, 
                                undertaking, publication, omission, or 
                                failure to detect, speak, disclose, 
                                publish, or warn relating to the 
                                presence or health effects of asbestos 
                                or the use, sale, distribution, 
                                manufacture, production, development, 
                                inspection, advertising, marketing, or 
                                installation of asbestos; or
                                    (II) asserting any conspiracy, act, 
                                conduct, statement, omission, or 
                                failure to detect, disclose, or warn 
                                relating to the presence or health 
                                effects of asbestos or the use, sale, 
                                distribution, manufacture, production, 
                                development, inspection, advertising, 
                                marketing, or installation of asbestos, 
                                asserted as or in a direct action 
                                against an insurer or reinsurer based 
                                upon any theory, statutory, contract, 
                                tort, or otherwise; or
                            (iv) by any third party, and premised on 
                        any theory, allegation, or cause of action, for 
                        reimbursement of healthcare costs allegedly 
                        associated with the use of or exposure to 
                        asbestos, whether such claim is asserted 
                        directly, indirectly or derivatively.
                    (B) Exceptions.--Subparagraph (A) (ii) and (iii) 
                shall not apply to claims against participants by 
                persons--
                            (i) with whom the participant is in privity 
                        of contract;
                            (ii) who have received an assignment of 
                        insurance rights not otherwise voided by this 
                        Act; or
                            (iii) who are beneficiaries covered by the 
                        express terms of a contract with that 
                        participant.
            (3) Preemption.--Any action asserting an asbestos claim 
        (including a claim described in paragraph (2)) in any Federal 
        or State court is preempted by this Act, except as provided 
        under subsection (d)(2).
            (4) Dismissal.--Except as provided under subsection (d)(2), 
        no judgment other than a judgment of dismissal may be entered 
        in any such action, including an action pending on appeal, or 
        on petition or motion for discretionary review, on or after the 
        date of enactment of this Act. A court may dismiss any such 
        action on its motion. If the court denies the motion to 
        dismiss, it shall stay further proceedings until final 
        disposition of any appeal taken under this Act.
            (5) Removal.--
                    (A) In general.--If an action in any State court 
                under paragraph (3) is preempted, barred, or otherwise 
                precluded under this Act, and not dismissed, or if an 
                order entered after the date of enactment of this Act 
                purporting to enter judgment or deny review is not 
                rescinded and replaced with an order of dismissal 
                within 30 days after the filing of a motion by any 
                party to the action advising the court of the 
                provisions of this Act, any party may remove the case 
                to the district court of the United States for the 
                district in which such action is pending.
                    (B) Time limits.--For actions originally filed 
                after the date of enactment of this Act, the notice of 
                removal shall be filed within the time limits specified 
                in section 1441(b) of title 28, United States Code.
                    (C) Procedures.--The procedures for removal and 
                proceedings after removal shall be in accordance with 
                sections 1446 through 1450 of title 28, United States 
                Code, except as may be necessary to accommodate removal 
                of any actions pending (including on appeal) on the 
                date of enactment of this Act.
                    (D) Review of remand orders.--
                            (i) In general.--Section 1447 of title 28, 
                        United States Code, shall apply to any removal 
                        of a case under this section, except that 
                        notwithstanding subsection (d) of that section, 
                        a court of appeals may accept an appeal from an 
                        order of a district court granting or denying a 
                        motion to remand an action to the State court 
                        from which it was removed if application is 
                        made to the court of appeals not less than 7 
                        days after entry of the order.
                            (ii) Time period for judgment.--If the 
                        court of appeals accepts an appeal under clause 
                        (i), the court shall complete all action on 
                        such appeal, including rendering judgment, not 
                        later than 60 days after the date on which such 
                        appeal was filed, unless an extension is 
                        granted under clause (iii).
                            (iii) Extension of time period.--The court 
                        of appeals may grant an extension of the 60-day 
                        period described in clause (ii) if--
                                    (I) all parties to the proceeding 
                                agree to such extension, for any period 
                                of time; or
                                    (II) such extension is for good 
                                cause shown and in the interests of 
                                justice, for a period not to exceed 10 
                                days.
                            (iv) Denial of appeal.--If a final judgment 
                        on the appeal under clause (i) is not issued 
                        before the end of the period described in 
                        clause (ii), including any extension under 
                        clause (iii), the appeal shall be denied.
                    (E) Jurisdiction.--The jurisdiction of the district 
                court shall be limited to--
                            (i) determining whether removal was proper; 
                        and
                            (ii) determining, based on the evidentiary 
                        record, whether the claim presented is 
                        preempted, barred, or otherwise precluded under 
                        this Act.
            (6) Credits.--
                    (A) In general.--If, notwithstanding the express 
                intent of Congress stated in this section, any court 
                finally determines for any reason that an asbestos 
                claim is not barred under this subsection and is not 
                subject to the exclusive remedy or preemption 
                provisions of this section, then any participant 
                required to satisfy a final judgment executed with 
                respect to any such claim may elect to receive a credit 
                against any assessment owed to the Fund equal to the 
                amount of the payment made with respect to such 
                executed judgment.
                    (B) Requirements.--The Administrator shall require 
                participants seeking credit under this paragraph to 
                demonstrate that the participant--
                            (i) timely pursued all available remedies, 
                        including remedies available under this 
                        paragraph to obtain dismissal of the claim; and
                            (ii) notified the Administrator at least 20 
                        days before the expiration of any period within 
                        which to appeal the denial of a motion to 
                        dismiss based on this section.
                    (C) Information.--The Administrator may require a 
                participant seeking credit under this paragraph to 
                furnish such further information as is necessary and 
                appropriate to establish eligibility for, and the 
                amount of, the credit.
                    (D) Intervention.--The Administrator may intervene 
                in any action in which a credit may be due under this 
                paragraph.

SEC. 404. EFFECT ON INSURANCE AND REINSURANCE CONTRACTS.

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

Year After Enactment In Which                                          
  Defendant Participant's                                    Applicable
  Funding Obligation Ends:                                  Percentage:
    2.............................................              67.06  
    3.............................................              86.72  
    4.............................................              96.55  
    5.............................................             102.45  
    6.............................................              90.12  
    7.............................................              81.32  
    8.............................................              74.71  
    9.............................................              69.58  
    10............................................              65.47  
    11............................................              62.11  
    12............................................              59.31  
    13............................................              56.94  
    14............................................              54.90  
    15............................................              53.14  
    16............................................              51.60  
    17............................................              50.24  
    18............................................              49.03  
    19............................................              47.95  
    20............................................              46.98  
    21............................................              46.10  
    22............................................              45.30  
    23............................................              44.57  
    24............................................              43.90  
    25............................................              43.28  
    26............................................              42.71  
    27............................................              42.18  
    28............................................              40.82  
    29............................................              39.42  
                    (D) Remaining aggregate products limits.--The term 
                ``remaining aggregate products limits'' means aggregate 
                limits that apply to insurance coverage granted under 
                the ``products hazard'', ``completed operations 
                hazard'', or ``Products--Completed Operations 
                Liability'' in any comprehensive general liability 
                policy issued between calendar years 1940 and 1986 to 
                cover injury which occurs in any State, as reduced by--
                            (i) any existing impairment of such 
                        aggregate limits as of the date of enactment of 
                        this Act; and
                            (ii) the resolution of claims for 
                        reimbursement or coverage of liability or paid 
                        or incurred loss for which notice was provided 
                        to the insurer before the date of enactment of 
                        this Act.
                    (E) Scheduled payment amounts.--The term 
                ``scheduled payment amounts'' means the future payment 
                obligation to the Fund under this Act from a defendant 
                participant in the amount established under sections 
                203 and 204.
                    (F) Unearned erosion amount.--The term ``unearned 
                erosion amount'' means, in the event of any early 
                sunset under section 405(f), the difference between the 
                deemed erosion amount and the earned erosion amount.
            (2) Quantum and timing of erosion.--
                    (A) Erosion upon enactment.--The collective payment 
                obligations to the Fund of the insurer and reinsurer 
                participants as assessed by the Administrator shall be 
                deemed as of the date of enactment of this Act to erode 
                remaining aggregate products limits available to a 
                defendant participant only in an amount of 38.1 percent 
                of each defendant participant's scheduled payment 
                amount.
                    (B) No assertion of claim.--No insurer or reinsurer 
                may assert any claim against a defendant participant or 
                captive insurer for insurance, reinsurance, payment of 
                a deductible, or retrospective premium adjustment 
                arising out of that insurer's or reinsurer's payments 
                to the Fund or the erosion deemed to occur under this 
                section.
                    (C) Policies without certain limits or with 
                exclusion.--Except as provided under subparagraph (E), 
                nothing in this section shall require or permit the 
                erosion of any insurance policy or limit that does not 
                contain an aggregate products limit, or that contains 
                an asbestos exclusion.
                    (D) Treatment of consolidation election.--If an 
                affiliated group elects consolidation as provided in 
                section 204(f), the total erosion of limits for the 
                affiliated group under paragraph (2)(A) shall not 
                exceed 59.64 percent of the scheduled payment amount of 
                the single payment obligation for the entire affiliated 
                group. The total erosion of limits for any individual 
                defendant participant in the affiliated group shall not 
                exceed its individual share of 59.64 percent of the 
                affiliated group's scheduled payment amount, as 
                measured by the individual defendant participant's 
                percentage share of the affiliated group's prior 
                asbestos expenditures.
                    (E) Rule of construction.--Notwithstanding any 
                other provision of this section, nothing in this Act 
                shall be deemed to erode remaining aggregate products 
                limits of a defendant participant that can demonstrate 
                by a reponderance of the evidence that 75 percent of 
                its prior asbestos expenditures were made in defense or 
                satisfaction of asbestos claims alleging bodily injury 
                arising exclusively from the exposure to asbestos at 
                premises owned, rented, or controlled by the defendant 
                participant (a ``premises defendant''). In calculating 
                such percentage, where expenditures were made in 
                defense or satisfaction of asbestos claims alleging 
                bodily injury due to exposure to the defendant 
                participant's products and to asbestos at premises 
                owned, rented, or controlled by the defendant 
                participant, half of such expenditures shall be deemed 
                to be for such premises exposures. If a defendant 
                participant establishes itself as a premises defendant, 
                75 percent of the payments by such defendant 
                participant shall erode coverage limits, if any, 
                applicable to premises liabilities under applicable 
                law.
            (3) Method of erosion.--
                    (A) Allocation.--The amount of erosion allocated to 
                each defendant participant shall be allocated among 
                periods in which policies with remaining aggregate 
                product limits are available to that defendant 
                participant pro rata by policy period, in ascending 
                order by attachment point.
                    (B) Other erosion methods.--
                            (i) In general.--Notwithstanding 
                        subparagraph (A), the method of erosion of any 
                        remaining aggregate products limits which are 
                        subject to--
                                    (I) a coverage-in-place or 
                                settlement agreement between a 
                                defendant participant and 1 or more 
                                insurance participants as of the date 
                                of enactment; or
                                    (II) a final and nonappealable 
                                judgment as of the date of enactment or 
                                resulting from a claim for coverage or 
                                reimbursement pending as of such date, 
                                shall be as specified in such agreement 
                                or judgment with regard to erosion 
                                applicable to such insurance 
                                participants' policies.
                            (ii) Remaining limits.--To the extent that 
                        a final nonappealable judgment or settlement 
                        agreement to which an insurer participant and a 
                        defendant participant are parties in effect as 
                        of the date of enactment of this Act 
                        extinguished a defendant participant's right to 
                        seek coverage for asbestos claims under an 
                        insurer participant's policies, any remaining 
                        limits in such policies shall not be considered 
                        to be remaining aggregate products limits under 
                        subsection (a)(1)(A).
            (4) Restoration of aggregate products limits upon early 
        sunset.--
                    (A) Restoration.--In the event of an early sunset, 
                any unearned erosion amount will be deemed restored as 
                aggregate products limits available to a defendant 
                participant as of the date of enactment.
                    (B) Method of restoration.--The unearned erosion 
                amount will be deemed restored to each defendant 
                participant's policies in such a manner that the last 
                limits that were deemed eroded at enactment under this 
                subsection are deemed to be the first limits restored 
                upon early sunset.
                    (C) Tolling of coverage claims.--In the event of an 
                early sunset, the applicable statute of limitations and 
                contractual provisions for the filing of claims under 
                any insurance policy with restored aggregate products 
                limits shall be deemed tolled after the date of 
                enactment through the date 6 months after the date of 
                early sunset.
            (5) Payments by defendant participant.--Payments made by a 
        defendant participant shall be deemed to erode, exhaust, or 
        otherwise satisfy applicable self-insured retentions, 
        deductibles, retrospectively rated premiums, and limits issued 
        by nonparticipating insolvent or captive insurance companies. 
        Reduction of remaining aggregate limits under this subsection 
        shall not limit the right of a defendant participant to collect 
        from any insurer not a participant.
            (6) Effect on other insurance claims.--Other than as 
        specified in this subsection, this Act does not alter, change, 
        modify, or affect insurance for claims other than asbestos 
        claims.
    (b) Dispute Resolution Procedure.--
            (1) Arbitration.--The parties to a dispute regarding the 
        erosion of insurance coverage limits under this section may 
        agree in writing to settle such dispute by arbitration. Any 
        such provision or agreement shall be valid, irrevocable, and 
        enforceable, except for any grounds that exist at law or in 
        equity for revocation of a contract.
            (2) Title 9, united states code.--Arbitration of such 
        disputes, awards by arbitrators, and confirmation of awards 
        shall be governed by title 9, United States Code, to the extent 
        such title is not inconsistent with this section. In any such 
        arbitration proceeding, the erosion principles provided for 
        under this section shall be binding on the arbitrator, unless 
        the parties agree to the contrary.
            (3) Final and binding award.--An award by an arbitrator 
        shall be final and binding between the parties to the 
        arbitration, but shall have no force or effect on any other 
        person. The parties to an arbitration may agree that in the 
        event a policy which is the subject matter of an award is 
        subsequently determined to be eroded in a manner different from 
        the manner determined by the arbitration in a judgment rendered 
        by a court of competent jurisdiction from which no appeal can 
        or has been taken, such arbitration award may be modified by 
        any court of competent jurisdiction upon application by any 
        party to the arbitration. Any such modification shall govern 
        the rights and obligations between such parties after the date 
        of such modification.
    (c) Effect on Nonparticipants.--
            (1) In general.--No insurance company or reinsurance 
        company that is not a participant, other than a captive 
        insurer, shall be entitled to claim that payments to the Fund 
        erode, exhaust, or otherwise limit the nonparticipant's 
        insurance or reinsurance obligations.
            (2) Other claims.--Nothing in this Act shall preclude a 
        participant from pursuing any claim for insurance or 
        reinsurance from any person that is not a participant other 
        than a captive insurer.
    (d) Finite Risk Policies Not Affected.--
            (1) In general.--Notwithstanding any other provision of 
        this Act, except subject to section 212(a)(1)(D), this Act 
        shall not alter, affect or impair any rights or obligations 
        of--
                    (A) any party to an insurance contract that 
                expressly provides coverage for governmental charges or 
                assessments imposed to replace insurance or reinsurance 
                liabilities in effect on the date of enactment of this 
                Act; or
                    (B) subject to paragraph (2), any person with 
                respect to any insurance or reinsurance purchased by a 
                participant after December 31, 1990, that expressly 
                (but not necessarily exclusively) provides coverage for 
                asbestos liabilities, including those policies commonly 
                referred to as ``finite risk'' policies.
            (2) Limitation.--No person may assert that any amounts paid 
        to the Fund in accordance with this Act are covered by any 
        policy described under paragraph (1)(B) purchased by a 
        defendant participant, unless such policy specifically provides 
        coverage for required payments to a Federal trust fund 
        established by a Federal statute to resolve asbestos injury 
        claims.
    (e) Effect on Certain Insurance and Reinsurance Claims.--
            (1) No coverage for fund assessments.--No participant or 
        captive insurer may pursue an insurance or reinsurance claim 
        against another participant or captive insurer for payments to 
        the Fund required under this Act, except under a contract 
        specifically providing insurance or reinsurance for required 
        payments to a Federal trust fund established by a Federal 
        statute to resolve asbestos injury claims or, where applicable, 
        under finite risk policies under subsection (d).
            (2) Certain insurance assignments voided.--Any assignment 
        of any rights to insurance coverage for asbestos claims to any 
        person who has asserted an asbestos claim before the date of 
        enactment of this Act, or to any trust, person, or other entity 
        not part of an affiliated group as defined in section 201(1) of 
        this Act established or appointed for the purpose of paying 
        asbestos claims which were asserted before such date of 
        enactment, or by any Tier I defendant participant, before any 
        sunset of this Act, shall be null and void. This subsection 
        shall not void or affect in any way any assignments of rights 
        to insurance coverage other than to asbestos claimants or to 
        trusts, persons, or other entities not part of an affiliated 
        group as defined in section 201(1) of this Act established or 
        appointed for the purpose of paying asbestos claims, or by Tier 
        I defendant participants.
            (3) Insurance claims preserved.--Notwithstanding any other 
        provision of this Act, this Act shall not alter, affect, or 
        impair any rights or obligations of any person with respect to 
        any insurance or reinsurance for amounts that any person pays, 
        has paid, or becomes legally obligated to pay in respect of 
        asbestos or other claims, except to the extent that--
                    (A) such person pays or becomes legally obligated 
                to pay claims that are superseded by section 403;
                    (B) any such rights or obligations of such person 
                with respect to insurance or reinsurance are prohibited 
                by paragraph (1) or (2) of subsection (e); or
                    (C) the limits of insurance otherwise available to 
                such participant in respect of asbestos claims are 
                deemed to be eroded under subsection (a).

SEC. 405. ANNUAL REPORT OF THE ADMINISTRATOR AND SUNSET OF THE ACT.

    (a) In General.--The Administrator shall submit an annual report to 
the Committee on the Judiciary of the Senate and the Committee on the 
Judiciary of the House of Representatives on the operation of the 
Asbestos Injury Claims Resolution Fund within 6 months after the close 
of each fiscal year.
    (b) Contents of Report.--The annual report submitted under this 
subsection shall include an analysis of--
            (1) the claims experience of the program during the most 
        recent fiscal year, including--
                    (A) the number of claims made to the Office and a 
                description of the types of medical diagnoses and 
                asbestos exposures underlying those claims;
                    (B) the number of claims denied by the Office and a 
                description of the types of medical diagnoses and 
                asbestos exposures underlying those claims, and a 
                general description of the reasons for their denial;
                    (C) a summary of the eligibility determinations 
                made by the Office under section 114;
                    (D) a summary of the awards made from the Fund, 
                including the amount of the awards; and
                    (E) for each eligible condition, a statement of the 
                percentage of asbestos claimants who filed claims 
                during the prior calendar year and were determined to 
                be eligible to receive compensation under this Act, who 
                have received the compensation to which such claimants 
                are entitled according to section 131;
            (2) the administrative performance of the program, 
        including--
                    (A) the performance of the program in meeting the 
                time limits prescribed by law and an analysis of the 
                reasons for any systemic delays;
                    (B) any backlogs of claims that may exist and an 
                explanation of the reasons for such backlogs;
                    (C) the costs to the Fund of administering the 
                program; and
                    (D) any other significant factors bearing on the 
                efficiency of the program;
            (3) the financial condition of the Fund, including--
                    (A) statements of the Fund's revenues, expenses, 
                assets, and liabilities;
                    (B) the identity of all participants, the funding 
                allocations of each participant, and the total amounts 
                of all payments to the Fund;
                    (C) a list of all financial hardship or inequity 
                adjustments applied for during the fiscal year, and the 
                adjustments that were made during the fiscal year;
                    (D) a statement of the investments of the Fund; and
                    (E) a statement of the borrowings of the Fund;
            (4) the financial prospects of the Fund, including--
                    (A) an estimate of the number and types of claims, 
                the amount of awards, and the participant payment 
                obligations for the next fiscal year;
                    (B) an analysis of the financial condition of the 
                Fund, including an estimation of the Fund's ability to 
                pay claims for the subsequent 5 years in full as and 
                when required, an evaluation of the Fund's ability to 
                retire its existing debt and assume additional debt, 
                and an evaluation of the Fund's ability to satisfy 
                other obligations under the program; and
                    (C) a report on any changes in projections made in 
                earlier annual reports or sunset analyses regarding the 
                Fund's ability to meet its financial obligations;
            (5) any recommendations from the Advisory Committee on 
        Asbestos Disease Compensation and the Medical Advisory 
        Committee of the Fund to improve the diagnostic, exposure, and 
        medical criteria so as to pay only those claimants whose 
        injuries are caused by exposure to asbestos;
            (6) a summary of the results of audits conducted under 
        section 115; and
            (7) a summary of prosecutions under section 1348 of title 
        18, United States Code (as added by this Act).
    (c) Claims Analysis.--If the Administrator concludes, on the basis 
of the annual report submitted under this section, that the Fund is 
compensating claims for injuries that are not caused by exposure to 
asbestos and compensating such claims may, currently or in the future, 
undermine the Fund's ability to compensate persons with injuries that 
are caused by exposure to asbestos, the Administrator shall include in 
the report an analysis of the reasons for the situation, a description 
of the range of reasonable alternatives for responding to the 
situation, and a recommendation as to which alternative best serves the 
interest of claimants and the public. The report shall include a 
description of changes in the diagnostic, exposure, or medical criteria 
of section 121 that the Administrator believes may be necessary to 
protect the Fund from compensating claims not caused by exposure to 
asbestos.
    (d) Shortfall Analysis.--
            (1) In general.--
                    (A) Analysis.--If the Administrator concludes, on 
                the basis of the information contained in the annual 
                report submitted under this section, that the Fund may 
                not be able to pay claims as such claims become due at 
                any time within the next 5 years, the Administrator 
                shall include in the report an analysis of the reasons 
                for the situation, an estimation of when the Fund will 
                no longer be able to pay claims as such claims become 
                due, a description of the range of reasonable 
                alternatives for responding to the situation, and a 
                recommendation as to which alternative best serves the 
                interest of claimants and the public. The report may 
                include a description of changes in the diagnostic, 
                exposure, or medical criteria of section 121 that the 
                Administrator believes may be necessary to protect the 
                Fund.
                    (B) Range of alternatives.--The range of 
                alternatives under subparagraph (A) may include--
                            (i) triggering the termination of this Act 
                        under subsection (f) at any time after the date 
                        of enactment of this Act; and
                            (ii) reform of the program set forth in 
                        titles I and II of this Act (including changes 
                        in the diagnostic, exposure, or medical 
                        criteria, changes in the enforcement or 
                        application of those criteria, changes in the 
                        timing of payments, changes in contributions by 
                        defendant participants, insurer participants 
                        (or both such participants), or changes in 
                        award values).
            (2) Considerations.--In formulating recommendations, the 
        Administrator shall take into account the reasons for any 
        shortfall, actual or projected, which may include--
                    (A) financial factors, including return on 
                investments, borrowing capacity, interest rates, 
                ability to collect contributions, and other relevant 
                factors;
                    (B) the operation of the Fund generally, including 
                administration of the claims processing, the ability of 
                the Administrator to collect contributions from 
                participants, potential problems of fraud, the adequacy 
                of the criteria to rule out idiopathic mesothelioma, 
                and inadequate flexibility to extend the timing of 
                payments;
                    (C) the appropriateness of the diagnostic, 
                exposure, and medical criteria, including the adequacy 
                of the criteria to rule out idiopathic mesothelioma;
                    (D) the actual incidence of asbestos-related 
                diseases, including mesothelioma, based on 
                epidemiological studies and other relevant data;
                    (E) compensation of diseases with alternative 
                causes; and
                    (F) other factors that the Administrator considers 
                relevant.
            (3) Recommendation of termination.--Any recommendation of 
        termination should include a plan for winding up the affairs of 
        the Fund (and the program generally) within a defined period, 
        including paying in full all claims resolved at the time the 
        report is prepared. Any plan under this paragraph shall provide 
        for priority in payment to the claimants with the most serious 
        illnesses.
            (4) Resolved claims.--For purposes of this section, a claim 
        shall be deemed resolved when the Administrator has determined 
        the amount of the award due the claimant, and either the 
        claimant has waived judicial review or the time for judicial 
        review has expired.
    (e) Recommendations of Administrator and Commission.--
            (1) In general.--If the Administrator recommends changes to 
        this Act under subsection (c), the recommendations and 
        accompanying analysis shall be referred to a special commission 
        consisting of the Attorney General, the Secretary of Labor, the 
        Secretary of Health and Human Services, the Secretary of the 
        Treasury, and the Secretary of Commerce, or their designees. 
        The Commission shall hold expedited public hearings on the 
        Administrator's alternatives and recommendations and then make 
        its own recommendations for reform of the program set forth in 
        titles I and II of this Act. Within 180 days after receiving 
        the Administrator's recommendations, the Commission shall 
        transmit its own recommendations to the Congress in the same 
        manner as set forth in subsection (a).
            (2) Referral.--If the Administrator recommends changes to, 
        or termination of, this Act under subsection (d), the 
        recommendations and accompanying analysis shall be referred to 
        the Commission. The Commission shall hold expedited public 
        hearings on the Administrator's alternatives and 
        recommendations and then make its own recommendations for 
        reform of the program set forth in titles I and II of this Act. 
        Within 180 days after receiving the Administrator's 
        recommendations, the Commission shall transmit its own 
        recommendations to Congress in the same manner as set forth in 
        subsection (a).
    (f) Sunset of Act.--
            (1) In general.--
                    (A) Termination.--Subject to paragraph (4), titles 
                I (except subtitle A) and II and sections 403 and 
                404(e)(2) shall terminate as provided under paragraph 
                (2), if the Administrator--
                            (i) has begun the processing of claims; and
                            (ii) as part of the review conducted to 
                        prepare an annual report under this section, 
                        determines that if any additional claims are 
                        resolved, the Fund will not have sufficient 
                        resources when needed to pay 100 percent of all 
                        resolved claims while also meeting all other 
                        obligations of the Fund under this Act, 
                        including the payment of--
                                    (I) debt repayment obligations; and
                                    (II) remaining obligations to the 
                                asbestos trust of a debtor and the 
                                class action trust.
                    (B) Remaining obligations.--For purposes of 
                subparagraph (A)(ii), the remaining obligations to the 
                asbestos trust of the debtor and the class action trust 
                shall be determined by the Administrator by assuming 
                that, instead of a lump-sum payment, such trust had 
                transferred its assets to the Fund on an annual basis, 
                taking into consideration relevant factors, including 
                the most recent projections made by the trust's actuary 
                before the date of enactment of this Act of the amount 
                and timing of future claim payments and administrative 
                and operating expenses.
            (2) Effective date of termination.--A termination under 
        paragraph (1) shall take effect 180 days after the date of a 
        determination of the Administrator under paragraph (1) and 
        shall apply to all asbestos claims that have not been resolved 
        by the Fund as of the date of the determination.
            (3) Resolved claims.--If a termination takes effect under 
        this subsection, all resolved claims shall be paid in full by 
        the Fund.
            (4) Extinguished claims.--A claim that is extinguished 
        under the statute of limitations provisions in section 113(b) 
        is not revived at the time of sunset under this subsection.
            (5) Continued funding.--If a termination takes effect under 
        this subsection, participants will still be required to make 
        payments as provided under subtitles A and B of title II. If 
        the full amount of payments required by title II is not 
        necessary for the Fund to pay claims that have been resolved as 
        of the date of termination, pay the Fund's debt and obligations 
        to the asbestos trusts and class action trust, and support the 
        Fund's continued operation as needed to pay such claims, debt, 
        and obligations, the Administrator may reduce such payments. 
        Any such reductions shall be allocated among participants in 
        approximately the same proportion as the liability under 
        subtitles A and B of title II.
            (6) Sunset claims.--
                    (A) Definitions.--In this paragraph--
                            (i) the term ``sunset claims'' means claims 
                        filed with the Fund, but not yet resolved, when 
                        this Act has terminated; and
                            (ii) the term ``sunset claimants'' means 
                        persons asserting sunset claims.
                    (B) In general.--If a termination takes effect 
                under this subsection, the applicable statute of 
                limitations for the filing of sunset claims under 
                subsection (g) shall be tolled for any past or pending 
                sunset claimants while such claimants were pursuing 
                claims filed under this Act. For those claimants who 
                decide to pursue a sunset claim in accordance with 
                subsection (g), the applicable statute of limitations 
                shall apply, except that claimants who filed a claim 
                against the Fund under this Act before the date of 
                termination shall have 2 years after the date of 
                termination to file a sunset claim in accordance with 
                subsection (g).
            (7) Asbestos trusts and class action trust.--On and after 
        the date of termination under this subsection, the trust 
        distribution program of any asbestos trust and the class action 
        trust shall be replaced with the medical criteria requirements 
        of section 121.
            (8) Payment to asbestos trusts and class action trust.--The 
        amounts determined under paragraph (1)(B) for payment to the 
        asbestos trusts and the class action trust shall be transferred 
        to the respective asbestos trusts of the debtor and the class 
        action trust within 90 days.
    (g) Nature of Claim After Sunset.--
            (1) In general.--
                    (A) Relief.--On and after the date of termination 
                under subsection (f), any individual with an asbestos 
                claim who has not previously had a claim resolved by 
                the Fund, may in a civil action obtain relief in 
                damages subject to the terms and conditions under this 
                subsection and paragraph (6) of subsection (f).
                    (B) Resolved claims.--An individual who has had a 
                claim resolved by the Fund may not pursue a court 
                action, except that an individual who received an award 
                for a nonmalignant disease (Levels I through V) from 
                the Fund may assert a claim for a subsequent or 
                progressive disease under this subsection, unless the 
                disease was diagnosed or the claimant had discovered 
                facts that would have led a reasonable person to obtain 
                such a diagnosis before the date on which the previous 
                claim against the Fund was disposed.
                    (C) Mesothelioma claim.--An individual who received 
                an award for a nonmalignant or malignant disease 
                (except mesothelioma) (Levels I through VIII) from the 
                Fund may assert a claim for mesothelioma under this 
                subsection, unless the mesothelioma was diagnosed or 
                the claimant had discovered facts that would have led a 
                reasonable person to obtain such a diagnosis before the 
                date on which the nonmalignant or other malignant claim 
                was disposed.
            (2) Exclusive remedy.--As of the effective date of a 
        termination of this Act under subsection (f), an action under 
        paragraph (1) shall be the exclusive remedy for any asbestos 
        claim that might otherwise exist under Federal, State, or other 
        law, regardless of whether such claim arose before or after the 
        date of enactment of this Act or of the termination of this 
        Act, except that claims against the Fund that have been 
        resolved before the date of the termination determination under 
        subsection (f) may be paid by the Fund.
            (3) Venue.--
                    (A) In general.--Actions under paragraph (1) may be 
                brought in--
                            (i) any Federal district court;
                            (ii) any State court in the State where the 
                        claimant resides; or
                            (iii) any State court in a State where the 
                        asbestos exposure occurred.
                    (B) Defendants not found.--If any defendant cannot 
                be found in the State described in clause (ii) or (iii) 
                of subparagraph (A), the claim may be pursued only 
                against that defendant in the Federal district court or 
                the State court located within any State in which the 
                defendant may be found.
                    (C) Determination of most appropriate forum.--If a 
                person alleges that the asbestos exposure occurred in 
                more than one county (or Federal district), the trial 
                court shall determine which State and county (or 
                Federal district) is the most appropriate forum for the 
                claim. If the court determines that another forum would 
                be the most appropriate forum for a claim, the court 
                shall dismiss the claim. Any otherwise applicable 
                statute of limitations shall be tolled beginning on the 
                date the claim was filed and ending on the date the 
                claim is dismissed under this subparagraph.
                    (D) State venue requirements.--Nothing in this 
                paragraph shall preempt or supersede any State's law 
                relating to venue requirements within that State which 
                are more restrictive.
            (4) Class action trusts.--Notwithstanding any other 
        provision of this section--
                    (A) after the assets of any class action trust have 
                been transferred to the Fund in accordance with section 
                203(b)(5), no asbestos claim may be maintained with 
                respect to asbestos liabilities arising from the 
                operations of a person with respect to whose 
                liabilities for asbestos claims a class action trust 
                has been established, whether such claim names the 
                person or its successors or affiliates as defendants; 
                and
                    (B) if a termination takes effect under subsection 
                (f), the exclusive remedy for all asbestos claims 
                (including sunset claims and claims first arising or 
                first presented after termination of the Fund) arising 
                from such operations will be a claim against the class 
                action trust to which the Administrator has transferred 
                funds under subsection (f)(8) to pay asbestos claims, 
                if necessary in proportionally reduced amounts.

SEC. 406. RULES OF CONSTRUCTION RELATING TO LIABILITY OF THE UNITED 
              STATES GOVERNMENT.

    (a) Causes of Actions.--Except as otherwise specifically provided 
in this Act, nothing in this Act shall be construed as creating a cause 
of action against the United States Government, any entity established 
under this Act, or any officer or employee of the United States 
Government or such entity.
    (b) Funding Liability.--Nothing in this Act shall be construed to--
            (1) create any obligation of funding from the United States 
        Government, other than the funding for personnel and support as 
        provided under this Act; or
            (2) obligate the United States Government to pay any award 
        or part of an award, if amounts in the Fund are inadequate.

SEC. 407. RULES OF CONSTRUCTION.

    (a) Libby, Montana Claimants.--Nothing in this Act shall preclude 
the formation of a fund for the payment of eligible medical expenses 
related to treating asbestos-related disease for current and former 
residents of Libby, Montana. The payment of any such medical expenses 
shall not be collateral source compensation as defined under section 
134(a).
    (b) Healthcare From Provider of Choice.--Nothing in this Act shall 
be construed to preclude any eligible claimant from receiving 
healthcare from the provider of their choice.

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

    (a) Asbestos in Commerce.--If the Administrator receives 
information concerning conduct occurring after the date of enactment of 
this Act that may have been a violation of standards issued by the 
Environmental Protection Agency under the Toxic Substances Control Act 
(15 U.S.C. 2601 et seq.), relating to the manufacture, importation, 
processing, disposal, and distribution in commerce of asbestos-
containing products, the Administrator shall refer the matter in 
writing within 30 days after receiving that information to the 
Administrator of the Environmental Protection Agency and the United 
States attorney for possible civil or criminal penalties, including 
those under section 17 of the Toxic Substances Control Act (15 U.S.C. 
2616), and to the appropriate State authority with jurisdiction to 
investigate asbestos matters.
    (b) Asbestos as Air Pollutant.--If the Administrator receives 
information concerning conduct occurring after the date of enactment of 
this Act that may have been a violation of standards issued by the 
Environmental Protection Agency under the Clean Air Act (42 U.S.C. 7401 
et seq.), relating to asbestos as a hazardous air pollutant, the 
Administrator shall refer the matter in writing within 30 days after 
receiving that information to the Administrator of the Environmental 
Protection Agency and the United States attorney for possible criminal 
and civil penalties, including those under section 113 of the Clean Air 
Act (42 U.S.C. 7413), and to the appropriate State authority with 
jurisdiction to investigate asbestos matters.
    (c) Occupational Exposure.--If the Administrator receives 
information concerning conduct occurring after the date of enactment of 
this Act that may have been a violation of standards issued by the 
Occupational Safety and Health Administration under the Occupational 
Safety and Health Act of 1970 (29 U.S.C. 651 et seq.), relating to 
occupational exposure to asbestos, the Administrator shall refer the 
matter in writing within 30 days after receiving that information and 
refer the matter to the Secretary of Labor or the appropriate State 
agency with authority to enforce occupational safety and health 
standards, for investigation for possible civil or criminal penalties 
under section 17 of the Occupational Safety and Health Act of 1970 (29 
U.S.C. 666).
    (d) Enhanced Criminal Penalties for Willful Violations of 
Occupational Standards for Asbestos.--Section 17(e) of the Occupational 
Safety and Health Act of 1970 (29 U.S.C. 656(e)) is amended--
            (1) by striking ``Any'' and inserting ``(1) Except as 
        provided in paragraph (2), any''; and
            (2) by adding at the end the following:
    ``(2) Any employer who willfully violates any standard issued under 
section 6 with respect to the control of occupational exposure to 
asbestos, shall upon conviction be punished by a fine in accordance 
with section 3571 of title 18, United States Code, or by imprisonment 
for not more than 5 years, or both, except that if the conviction is 
for a violation committed after a first conviction of such person, 
punishment shall be by a fine in accordance with section 3571 of title 
18, United States Code, or by imprisonment for not more than 10 years, 
or both.''.
    (e) Contributions to the Asbestos Trust Fund by EPA and OSHA 
Asbestos Violators.--
            (1) In general.--The Administrator shall assess employers 
        or other individuals determined to have violated asbestos 
        statutes, standards, or regulations administered by the 
        Department of Labor, the Environmental Protection Agency, and 
        their State counterparts, for contributions to the Asbestos 
        Injury Claims Resolution Fund (in this section referred to as 
        the ``Fund'').
            (2) Identification of violators.--Each year, the 
        Administrator shall--
                    (A) in consultation with the Assistant Secretary of 
                Labor for Occupational Safety and Health, identify all 
                employers that, during the previous year, were subject 
                to final orders finding that they violated standards 
                issued by the Occupational Safety and Health 
                Administration for control of occupational exposure to 
                asbestos (29 C.F.R. 1910.1001, 1915.1001, and 
                1926.1101) or the equivalent asbestos standards issued 
                by any State under section 18 of the Occupational 
                Safety and Health Act (29 U.S.C. 668); and
                    (B) in consultation with the Administrator of the 
                Environmental Protection Agency, identify all employers 
                or other individuals who, during the previous year, 
                were subject to final orders finding that they violated 
                asbestos regulations administered by the Environmental 
                Protection Agency (including the National Emissions 
                Standard for Asbestos established under the Clean Air 
                Act (42 U.S.C. 7401 et seq.), the asbestos worker 
                protection standards established under part 763 of 
                title 40, Code of Federal Regulations, and the 
                regulations banning asbestos promulgated under section 
                501 of this Act), or equivalent State asbestos 
                regulations.
            (3) Assessment for contribution.--The Administrator shall 
        assess each such identified employer or other individual for a 
        contribution to the Fund for that year in an amount equal to--
                    (A) 2 times the amount of total penalties assessed 
                for the first violation of occupational health and 
                environmental statutes, standards, or regulations;
                    (B) 4 times the amount of total penalties for a 
                second violation of such statutes, standards, or 
                regulations; and
                    (C) 6 times the amount of total penalties for any 
                violations thereafter.
            (4) Liability.--Any assessment under this subsection shall 
        be considered a liability under this Act.
            (5) Payments.--Each such employer or other individual 
        assessed for a contribution to the Fund under this subsection 
        shall make the required contribution to the Fund within 90 days 
        of the date of receipt of notice from the Administrator 
        requiring payment.
            (6) Enforcement.--The Administrator is authorized to bring 
        a civil action under section 223(c) against any employer or 
        other individual who fails to make timely payment of 
        contributions assessed under this section.
    (f) Review of Federal Sentencing Guidelines for Environmental 
Crimes Related to Asbestos.--Under section 994 of title 28, United 
States Code, and in accordance with this section, the United States 
Sentencing Commission shall review and amend, as appropriate, the 
United States Sentencing Guidelines and related policy statements to 
ensure that--
            (1) appropriate changes are made within the guidelines to 
        reflect any statutory amendments that have occurred since the 
        time that the current guideline was promulgated;
            (2) the base offense level, adjustments, and specific 
        offense characteristics contained in section 2Q1.2 of the 
        United States Sentencing Guidelines (relating to mishandling of 
        hazardous or toxic substances or pesticides; recordkeeping, 
        tampering, and falsification; and unlawfully transporting 
        hazardous materials in commerce) are increased as appropriate 
        to ensure that future asbestos-related offenses reflect the 
        seriousness of the offense, the harm to the community, the need 
        for ongoing reform, and the highly regulated nature of 
        asbestos;
            (3) the base offense level, adjustments, and specific 
        offense characteristics are sufficient to deter and punish 
        future activity and are adequate in cases in which the relevant 
        offense conduct--
                    (A) involves asbestos as a hazardous or toxic 
                substance; and
                    (B) occurs after the date of enactment of this Act;
            (4) the adjustments and specific offense characteristics 
        contained in section 2B1.1 of the United States Sentencing 
        Guidelines related to fraud, deceit, and false statements, 
        adequately take into account that asbestos was involved in the 
        offense, and the possibility of death or serious bodily harm as 
        a result;
            (5) the guidelines that apply to organizations in chapter 8 
        of the United States Sentencing Guidelines are sufficient to 
        deter and punish organizational criminal misconduct that 
        involves the use, handling, purchase, sale, disposal, or 
        storage of asbestos; and
            (6) the guidelines that apply to organizations in chapter 8 
        of the United States Sentencing Guidelines are sufficient to 
        deter and punish organizational criminal misconduct that 
        involves fraud, deceit, or false statements against the Office 
        of Asbestos Disease Compensation.

SEC. 409. NONDISCRIMINATION OF HEALTH INSURANCE.

    (a) Denial, Termination, or Alteration of Health Coverage.--No 
health insurer offering a health plan may deny or terminate coverage, 
or in any way alter the terms of coverage, of any claimant or the 
beneficiary of a claimant, on account of the participation of the 
claimant or beneficiary in a medical monitoring program under this Act, 
or as a result of any information discovered as a result of such 
medical monitoring.
    (b) Definitions.--In this section:
            (1) Health insurer.--The term ``health insurer'' means--
                    (A) an insurance company, healthcare service 
                contractor, fraternal benefit organization, insurance 
                agent, third-party administrator, insurance support 
                organization, or other person subject to regulation 
                under the laws related to health insurance of any 
                State;
                    (B) a managed care organization; or
                    (C) an employee welfare benefit plan regulated 
                under the Employee Retirement Income Security Act of 
                1974 (29 U.S.C. 1001 et seq.).
            (2) Health plan.--The term ``health plan'' means--
                    (A) a group health plan (as such term is defined in 
                section 607 of the Employee Retirement Income Security 
                Act of 1974 (29 U.S.C. 1167)), and a multiple employer 
                welfare arrangement (as defined in section 3(4) of such 
                Act) that provides health insurance coverage; or
                    (B) any contractual arrangement for the provision 
                of a payment for healthcare, including any health 
                insurance arrangement or any arrangement consisting of 
                a hospital or medical expense incurred policy or 
                certificate, hospital or medical service plan contract, 
                or health maintenance organizing subscriber contract.
    (c) Conforming Amendments.--
            (1) ERISA.--Section 702(a)(1) of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1182(a)(1)), is amended 
        by adding at the end the following:
                    ``(I) Participation in a medical monitoring program 
                under the Fairness in Asbestos Injury Resolution Act of 
                2005.''.
            (2) Public service health act.--Section 2702(a)(1) of the 
        Public Health Service Act (42 U.S.C. 300gg-1(a)(1)) is amended 
        by adding at the end the following:
                    ``(I) Participation in a medical monitoring program 
                under the Fairness in Asbestos Injury Resolution Act of 
                2005.''.
            (3) Internal revenue code of 1986.--Section 9802(a)(1) of 
        the Internal Revenue Code of 1986 is amended by adding at the 
        end the following:
                    ``(I) Participation in a medical monitoring program 
                under the Fairness in Asbestos Injury Resolution Act of 
                2005.''.

                         TITLE V--ASBESTOS BAN

SEC. 501. PROHIBITION ON ASBESTOS CONTAINING PRODUCTS.

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

                  ``Subtitle A--General Provisions'';

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

           ``Subtitle B--Ban of Asbestos Containing Products

``SEC. 221. BAN OF ASBESTOS CONTAINING PRODUCTS.

    ``(a) Definitions.--In this chapter:
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the Environmental Protection Agency.
            ``(2) Asbestos.--The term `asbestos' includes--
                    ``(A) chrysotile;
                    ``(B) amosite;
                    ``(C) crocidolite;
                    ``(D) tremolite asbestos;
                    ``(E) winchite asbestos;
                    ``(F) richterite asbestos;
                    ``(G) anthophyllite asbestos;
                    ``(H) actinolite asbestos;
                    ``(I) amphibole asbestos; and
                    ``(J) any of the minerals listed under 
                subparagraphs (A) through (I) that has been chemically 
                treated or altered, and any asbestiform variety, type, 
                or component thereof.
            ``(3) Asbestos containing product.--The term `asbestos 
        containing product' means any product (including any part) to 
        which asbestos is deliberately or knowingly added or used 
        because the specific properties of asbestos are necessary for 
        product use or function. Under no circumstances shall the term 
        `asbestos containing product' be construed to include products 
        that contain de minimus levels of naturally occurring asbestos 
        as defined by the Administrator not later than 1 year after the 
        date of enactment of this chapter.
            ``(4) Distribute in commerce.--The term `distribute in 
        commerce'--
                    ``(A) has the meaning given the term in section 3 
                of the Toxic Substances Control Act (15 U.S.C. 2602); 
                and
                    ``(B) shall not include--
                            ``(i) an action taken with respect to an 
                        asbestos containing product in connection with 
                        the end use of the asbestos containing product 
                        by a person that is an end user, or an action 
                        taken by a person who purchases or receives a 
                        product, directly or indirectly, from an end 
                        user; or
                            ``(ii) distribution of an asbestos 
                        containing product by a person solely for the 
                        purpose of disposal of the asbestos containing 
                        product in compliance with applicable Federal, 
                        State, and local requirements.
    ``(b) In General.--Subject to subsection (c), the Administrator 
shall promulgate--
            ``(1) not later than 1 year after the date of enactment of 
        this chapter, proposed regulations that--
                    ``(A) prohibit persons from manufacturing, 
                processing, or distributing in commerce asbestos 
                containing products; and
                    ``(B) provide for implementation of subsections (c) 
                and (d); and
            ``(2) not later than 2 years after the date of enactment of 
        this chapter, final regulations that, effective 60 days after 
        the date of promulgation, prohibit persons from manufacturing, 
        processing, or distributing in commerce asbestos containing 
        products.
    ``(c) Exemptions.--
            ``(1) In general.--Any person may petition the 
        Administrator for, and the Administrator may grant, an 
        exemption from the requirements of subsection (b), if the 
        Administrator determines that--
                    ``(A) the exemption would not result in an 
                unreasonable risk of injury to public health or the 
                environment; and
                    ``(B) the person has made good faith efforts to 
                develop, but has been unable to develop, a substance, 
                or identify a mineral that does not present an 
                unreasonable risk of injury to public health or the 
                environment and may be substituted for an asbestos 
                containing product.
            ``(2) Terms and conditions.--An exemption granted under 
        this subsection shall be in effect for such period (not to 
        exceed 5 years) and subject to such terms and conditions as the 
        Administrator may prescribe.
            ``(3) Governmental use.--
                    ``(A) In general.--The Administrator of the 
                Environmental Protection Agency shall provide an 
                exemption from the requirements of subsection (b), 
                without review or limit on duration, if such exemption 
                for an asbestos containing product is--
                            ``(i) sought by the Secretary of Defense 
                        and the Secretary certifies, and provides a 
                        copy of that certification to Congress, that--
                                    ``(I) use of the asbestos 
                                containing product is necessary to the 
                                critical functions of the Department;
                                    ``(II) no reasonable alternatives 
                                to the asbestos containing product 
                                exist for the intended purpose; and
                                    ``(III) use of the asbestos 
                                containing product will not result in 
                                an unreasonable risk to health or the 
                                environment; or
                            ``(ii) sought by the Administrator of the 
                        National Aeronautics and Space Administration 
                        and the Administrator of the National 
                        Aeronautics and Space Administration certifies, 
                        and provides a copy of that certification to 
                        Congress, that--
                                    ``(I) the asbestos containing 
                                product is necessary to the critical 
                                functions of the National Aeronautics 
                                and Space Administration;
                                    ``(II) no reasonable alternatives 
                                to the asbestos containing product 
                                exist for the intended purpose; and
                                    ``(III) the use of the asbestos 
                                containing product will not result in 
                                an unreasonable risk to health or the 
                                environment.
                    ``(B) Administrative procedure act.--Any 
                certification required under subparagraph (A) shall not 
                be subject to chapter 5 of title 5, United States Code 
                (commonly referred to as the `Administrative Procedure 
                Act').
            ``(4) Specific exemptions.--The following are exempted:
                    ``(A) Asbestos diaphragms for use in the 
                manufacture of chlor-alkali and the products and 
                derivative therefrom.
                    ``(B) Roofing cements, coatings, and mastics 
                utilizing asbestos that is totally encapsulated with 
                asphalt, subject to a determination by the 
                Administrator of the Environmental Protection Agency 
                under paragraph (5).
            ``(5) Environmental protection agency review.--
                    ``(A) Review in 18 months.--Not later than 18 
                months after the date of enactment of this chapter, the 
                Administrator of the Environmental Protection Agency 
                shall complete a review of the exemption for roofing 
                cements, coatings, and mastics utilizing asbestos that 
                are totally encapsulated with asphalt to determine 
                whether--
                            ``(i) the exemption would result in an 
                        unreasonable risk of injury to public health or 
                        the environment; and
                            ``(ii) there are reasonable, commercial 
                        alternatives to the roofing cements, coatings, 
                        and mastics utilizing asbestos that is totally 
                        encapsulated with asphalt.
                    ``(B) Revocation of exemption.--Upon completion of 
                the review, the Administrator of the Environmental 
                Protection Agency shall have the authority to revoke 
                the exemption for the products exempted under paragraph 
                (4)(B), if warranted.
    ``(d) Disposal.--
            ``(1) In general.--Except as provided in paragraph (2), not 
        later than 3 years after the date of enactment of this chapter, 
        each person that possesses an asbestos containing product that 
        is subject to the prohibition established under this section 
        shall dispose of the asbestos containing product, by a means 
        that is in compliance with applicable Federal, State, and local 
        requirements.
            ``(2) Exemption.--Nothing in paragraph (1)--
                    ``(A) applies to an asbestos containing product 
                that--
                            ``(i) is no longer in the stream of 
                        commerce; or
                            ``(ii) is in the possession of an end user 
                        or a person who purchases or receives an 
                        asbestos containing product directly or 
                        indirectly from an end user; or
                    ``(B) requires that an asbestos containing product 
                described in subparagraph (A) be removed or 
                replaced.''.
    (b) Technical and Conforming Amendments.--The table of contents in 
section 1 of the Toxic Substances Control Act (15 U.S.C. prec. 2601) is 
amended--
            (1) by inserting before the item relating to section 201 
        the following:

                  ``Subtitle A--General Provisions'';

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

           ``Subtitle B--Ban of Asbestos Containing Products

        ``Sec. 221. Ban of asbestos containing products.''.
                                 <all>
```