I 
108TH CONGRESS 
1ST SESSION H. R. 1114
To establish legal standards and procedures for the fair, prompt, inexpensive, 
and efficient resolution of personal injury claims arising out of asbestos 
exposure, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 6, 2003
Mr. KIRK (for himself, Mr. HYDE, Mrs. JOHNSON of Connecticut, Mr. 
PORTMAN, Mr. SHAYS, Mr. BURR, Mr. MICA, Mr. MCCOTTER, Mr. 
GILLMOR, Mr. SHIMKUS, Mr. TIBERI, Ms. GINNY BROWN-WAITE of Flor-
ida, Ms. ROS-LEHTINEN, Mr. FOLEY, Mr. BAKER, Mr. KENNEDY of 
Rhode Island, Mr. DOOLITTLE, Mr. CASTLE, and Mr. MCCRERY) intro-
duced the following bill; which was referred to the Committee on the Ju-
diciary 
A BILL 
To establish legal standards and procedures for the fair, 
prompt, inexpensive, and efficient resolution of personal 
injury claims arising out of asbestos exposure, and for 
other purposes.
Be it enacted by the Senate and House of Representa-
tives 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 
‘‘Asbestos Compensation Act of 2003’’.
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows:
Sec. 1. Short title; table of contents. 
TITLE I—ESTABLISHMENT AND PROCEDURE 
Sec. 101. Establishment of the Office of Asbestos Compensation. 
Sec. 102. Medical eligibility review. 
Sec. 103. Election of administrative process; settlement offers. 
Sec. 104. Claimant’s choice of forum. 
Sec. 105. Administrative adjudication. 
Sec. 106. Appeals; judicial review. 
Sec. 107. Gathering and maintenance of information. 
Sec. 108. Legal assistance program. 
Sec. 109. Time limits for dispositions. 
TITLE II—LAW APPLICABLE TO ASBESTOS ADJUDICATIONS 
Sec. 201. Medical eligibility. 
Sec. 202. Damages. 
Sec. 203. Statute of limitations or repose. 
Sec. 204. Come back rights. 
Sec. 205. Class actions, aggregations of claims and venue. 
Sec. 206. Joint and several liability. 
Sec. 207. Core claims. 
Sec. 208. Special rules applicable to section 105 adjudications. 
Sec. 209. Special rules applicable to the trustee. 
TITLE III—ELIGIBLE MEDICAL CATEGORIES 
Sec. 301. Eligible medical categories. 
Sec. 302. Asbestos-related non-malignant conditions with impairment. 
Sec. 303. Asbestos-related mesothelioma. 
Sec. 304. Asbestos-related lung cancer. 
Sec. 305. Asbestos-related other cancer. 
Sec. 306. Medical testing reimbursement. 
TITLE IV—FUNDING 
Sec. 401. Assessment and enforcement. 
Sec. 402. Fiscal and financial management of the asbestos compensation fund. 
Sec. 403. Authorization for appropriations and offsetting collections. 
TITLE V—TRANSITION 
Sec. 501. Applicability; transitional civil actions. 
TITLE VI—DEFINITIONS 
Sec. 601. Definitions. 
TITLE VII—MISCELLANEOUS PROVISIONS 
Sec. 701. Relationship to other laws. 
Sec. 702. Annual reports. 
Sec. 703. Enforcement.
Sec. 704. Qualifying National Settlement Plan. 
Sec. 705. Severability. 
Sec. 706. Settlements.
TITLE I—ESTABLISHMENT AND 
PROCEDURE 
SEC. 101. ESTABLISHMENT OF THE OFFICE OF ASBESTOS 
COMPENSATION. 
(a) 
ESTABLISHMENT
OF
PROGRAM; 
ADMINIS-
TRATOR.—There is established in the Department of Jus-
tice the Office of Asbestos Compensation (OAC) to be 
headed by an Administrator. The Administrator shall be 
appointed by the President by and with the advice and 
consent of the Senate. The Administrator shall serve for 
a term of 10 years, and may be removed by the Attorney 
General only for good cause. The Administrator shall have 
authority to promulgate all procedural and substantive 
rules necessary to administer this Act. All claims and 
other filings under this Act shall be lodged with the office 
designated by the Administrator. 
(b) EXCLUSIVE JURISDICTION.—Except as otherwise 
provided in this Act, the OAC shall have exclusive jurisdic-
tion over proceedings to determine if a claimant is entitled 
to compensation for an asbestos claim and the amount of 
such compensation. The foregoing shall not apply to any 
claim brought under any workers’ compensation law or 
veterans’ benefits program.
(c) MEDICAL DIRECTOR.—The Administrator shall 
appoint the Medical Director and may remove the Medical 
Director for good cause. The Medical Director shall, under 
the supervision of the Administrator, manage the medical 
review process under section 102 and shall have the au-
thority to appoint or to contract for the services of claims 
examiners, physicians, and such other personnel as may 
be necessary or appropriate for the efficient conduct of 
the medical review process and to create the exceptional 
medical claims panel. 
(d) ASBESTOS COMPENSATION FUND.—There is es-
tablished in the OAC an Asbestos Compensation Fund for 
the purpose of providing payments to claimants under this 
Act. The Administrator shall appoint the Trustee of the 
Asbestos Compensation Fund and may remove the Trust-
ee for good cause. 
(e) OFFICE OF ADMINISTRATIVE LAW JUDGES.—
There is established in the OAC an Office of Administra-
tive Law Judges for the purpose of providing expedited 
administrative adjudication of asbestos claims pursuant to 
section 105. The Administrator shall have authority to ap-
point Administrative Law Judges on a temporary or emer-
gency basis and to remove such judges for good cause. 
(f) MEDICAL ADVISORY COMMITTEE.—The Adminis-
trator shall appoint a Medical Advisory Committee which
shall periodically evaluate this Act’s medical review proc-
ess and medical eligibility criteria. The Administrator shall 
set a term of appointment for members of the Medical Ad-
visory Committee. The Committee shall make appropriate 
recommendations as and when it deems appropriate and 
shall submit an annual report to the Administrator and 
the Congress. 
SEC. 102. MEDICAL ELIGIBILITY REVIEW. 
(a) DETERMINATION
OF ELIGIBILITY.—All claims 
when filed shall be immediately referred to the Medical 
Director. The Medical Director shall determine whether 
the claimant meets the requirements for medical eligibility 
in section 301 or the requirements for medical testing re-
imbursement in section 306. 
(b) INFORMATION FOR MEDICAL REVIEW.—The Ad-
ministrator shall issue rules for the expeditious conduct 
of the medical review process. Such rules at a minimum 
shall provide for the following: 
(1) Submission of the following information 
where relevant and feasible: smoking history; occu-
pational history; description of the circumstances, 
intensity, time, and duration of exposure; medical 
test results necessary for a decision as to whether an 
exposed person meets the requirements for one or 
more medically eligible categories under sections
301, 302, 303, 304, 305, or 306, including all of the 
supporting data for any pulmonary function tests on 
which the claimant relies (including all flow volume 
loops, spirographs, and any other tracings for any 
test that is performed). The claimant shall also pro-
vide such medical releases as the Administrator may 
require allowing the OAC to obtain any and all med-
ical information relevant to the determination of 
medical eligibility. 
(2) The Medical Director may require addi-
tional non-invasive medical tests at the expense of 
the OAC if necessary for a determination of medical 
eligibility. 
(c) PROCEDURES.—Upon receipt of a complete med-
ical application, the Medical Director shall send notice to 
the claimant confirming the OAC’s receipt of the claim. 
The Medical Director shall make an initial decision within 
30 days of such receipt. If the application is initially de-
nied, the claimant shall be so notified and, at the claim-
ant’s request, the application shall be immediately referred 
to—
(1) a review panel of 2 qualified physicians, 
with a third qualified physician available to resolve 
any disagreement between the initial 2 qualified phy-
sicians; or
(2) an exceptional medical claims panel. 
The Medical Director shall be bound by a panel’s decision. 
The rules shall also provide for the prioritization of claims, 
including enhanced priority for claimants who have meso-
thelioma, and set a time limit for a determination by the 
review panel. 
(d) EXCEPTIONAL MEDICAL CLAIMS.—The rules of 
the medical review process shall provide the claimant with 
an opportunity to apply to an exceptional medical claims 
panel for a determination of whether the exposed person 
meets the requirements under section 301(b) for an excep-
tional medical claim for any category. This opportunity 
shall be provided both at the initial filing of a claim and 
after a claim has been denied under this subsection. The 
exceptional medical claims panel shall decide whether the 
claimant qualifies as an exceptional medical claim within 
30 days of receipt of the claim. This time limit may be 
extended by the Administrator only for good cause. The 
Medical Director shall be bound by the decision of the ex-
ceptional medical claims panel. The Medical Director shall 
issue a final denial, along with a brief statement of rea-
sons, if the claimant is found ineligible following an oppor-
tunity to submit the claim to a medical review panel and 
an exceptional medical claims panel.
(e) MONITORING ACCURACY OF DETERMINATIONS.—
The Medical Director shall establish audit and personnel 
review procedures for evaluating the accuracy of medical 
eligibility determinations, including both erroneous ap-
provals and erroneous denials. 
(f) OPT-OUT.—After receiving a certificate of eligi-
bility, a claimant may opt out of settlement proceedings 
provided for under sections 103 and 104 and elect to file 
suit in any State or Federal court of competent jurisdic-
tion. 
SEC. 103. ELECTION OF ADMINISTRATIVE PROCESS; SET-
TLEMENT OFFERS. 
(a) NAMING AND NOTIFICATION OF DEFENDANTS.—
Medically eligible claimants, other than those who elect to 
file suit in court under section 102(f), shall name defend-
ants. Defendants shall receive notice from the Adminis-
trator. 
(1) IDENTIFICATION OF DEFENDANTS ASSOCI-
ATED
WITH
WORK
SITES.—At the claimant’s re-
quest, the Administrator will provide information 
concerning person who may have provided asbestos 
or asbestos-containing products or materials to work 
sites named by the claimant and when such asbestos 
or asbestos-containing products or materials may 
have been provided as well as the time such products
or materials were located at the named work sites. 
The Administrator may implement this paragraph 
through rulemaking. 
(2) VERIFIED PARTICULARIZED STATEMENT.—
Within such time after receiving a certificate of med-
ical eligibility as may be provided by rule, a claimant 
shall provide, with respect to each person that the 
claimant alleges is responsible for the injury claimed, 
a verified particularized statement of the basis for 
the allegation that the person is or may be respon-
sible for the injury. The particularized statement 
shall include such information as the Administrator 
may require for the purpose of providing the defend-
ant with a reasonable basis for making an offer of 
settlement. The claimant may incorporate by ref-
erence any information required by this paragraph 
that may already have been submitted to the OAC. 
(3) NOTICE.—Upon finding that the claimant’s 
particularized statement meets the requirements of 
paragraph (2), the Administrator shall provide no-
tice to each named defendant. The defendant shall 
at the same time be furnished with a copy of all par-
ticularized statements submitted by the claimant 
under paragraph (2) and, subject to reasonable rules 
protecting the confidentiality of information provided
by the claimant, a copy of all information submitted 
by the claimant, records and other information ob-
tained by the Medical Director relating to the claim 
and the results of any medical tests administered at 
the direction of the Medical Director. Any defendant 
may provide any information relevant to the amount 
of any recommended settlement under subsection 
(b), including information regarding product identi-
fication, exposure, and damages. 
(4) THIRD-PARTY PRACTICE.—Defendants may 
assert third-party claims in accordance with rules 
adopted by the Administrator. Third-party claimants 
shall provide a verified particularized statement, 
meeting the requirements of paragraph (2), substan-
tiating the allegation that the third-party defendant 
may be liable to the third-party plaintiff, wholly or 
in part, for the claimant’s injury. For good cause 
shown and subject to reasonable limitations, an Ad-
ministrative Law Judge may allow discovery for the 
purpose of obtaining information necessary to allow 
the claimant or any third-party plaintiff to provide 
a particularized statement under paragraph (2) or 
this paragraph. 
(b) SETTLEMENT OFFERS; OFFER OF COMPENSA-
TION BY THE TRUSTEE.—
(1) MANDATORY OFFER FROM DEFENDANTS.—
Within 21 days following the naming of all defend-
ants, each defendant shall provide to the claimant in 
writing a good faith settlement offer, and shall pro-
vide a copy to the Trustee. 
(2) MANDATORY OFFER FROM ASBESTOS COM-
PENSATION FUND.—Within 10 days of receiving all 
of the defendants’ offers, the Trustee shall make an 
offer of compensation to the claimant, based on a 
compensation grid which shall be established and 
regularly revised by rule. 
SEC. 104. CLAIMANT’S CHOICE OF FORUM. 
(a) IN GENERAL.—The claimant shall notify each de-
fendant and the Trustee whether the claimant accepts or 
rejects the defendant’s settlement offer under section 
103(b)(1). If the claimant accepts any such offer, or any 
other settlement offer, the Trustee’s offer of compensation 
shall be automatically reduced by the amount of such set-
tlements. 
(b) NOTICE.—The claimant shall notify the Trustee 
and any defendant within 60 days whether the claimant 
accepts or rejects an offer that has been provided pursuant 
to section 103(b)(1) or 103(b)(2).
(c) ORPHAN SHARES.—The Trustee shall not make 
an offer to the claimant under section 103(b) if no solvent 
defendant has been named. 
(d) ACCEPTANCE.—If the claimant accepts the Trust-
ee’s offer of compensation, the Trustee shall assume the 
claim. The Trustee may accept any defendant’s settlement 
offer under section 103(b)(1) or may prosecute the claim 
against any defendant as provided in section 105, or may 
prosecute the claim in any State or Federal court. 
(e) REJECTION.—If the claimant rejects any defend-
ant’s settlement offer and also rejects the Trustee’s offer 
of compensation, the claimant may elect an administrative 
adjudication under section 105 or opt out of further ad-
ministrative proceedings and file suit in a State or Federal 
court. 
SEC. 105. ADMINISTRATIVE ADJUDICATION. 
If a claimant elects adjudication under this section, 
the OAC shall assign an Administrative Law Judge to 
conduct a hearing on the record and to determine whether 
compensation is to be provided and the amount of such 
compensation. The Administrative Law Judge shall ad-
here to the law applicable to asbestos adjudications as con-
tained in sections 201 through 210. The Administrative 
Law Judge shall issue a decision, containing findings of
fact and conclusions of law, as expeditiously as possible, 
but not later than 90 days after the case is assigned. 
SEC. 106. APPEALS; JUDICIAL REVIEW. 
Any person aggrieved by a final decision of the Ad-
ministrator under section 105 or a final denial by the 
Medical Director under section 102, may seek review of 
that decision or denial in the United States Court of Fed-
eral Claims, which shall uphold the decision or denial if 
it is supported by substantial evidence and is not contrary 
to law. A decision by the Medical Director that a claimant 
has an eligible medical condition is not a final decision 
under this section. Decisions of the United States Court 
of Federal Claims are appealable, without regard to the 
amount in controversy or the citizenship of the parties, 
to a United States Court of Appeals for a judicial circuit. 
SEC. 107. GATHERING AND MAINTENANCE OF INFORMA-
TION. 
(a) PRODUCT IDENTIFICATION.—The OAC shall col-
lect and regularly update information regarding product 
identification and shall make such information publicly 
available. The data base maintained by the OAC under 
this section is for information purposes only, and the pres-
ence of information in that database shall not lead to any 
presumption.
(b) SETTLEMENTS, JUDGMENTS, AND AWARDS.—
The OAC shall collect data on settlements, judgments, and 
awards in connection with asbestos claims and shall make 
such data publicly available. The OAC may require this 
data to be reported in such form as it may prescribe. 
(c) SUBPOENA POWER.—The OAC may compel, by 
subpoena or other appropriate process, information from 
any person regarding past settlements or product identi-
fication for purposes of developing and maintaining a com-
pensation grid under section 103(b)(2) and maintaining 
a database for purposes of naming defendants under sec-
tion 103(a)(1). In addition, the subpoena power under this 
subsection may be used by the OAC in order to secure 
financial information from any defendant. 
(d) CONFIDENTIALITY.—Any information or docu-
mentary material concerning settlements which is specific 
to a company, law firm, or plaintiff that is provided to 
the OAC pursuant to subsection (b) or (c), whether by 
subpoena or otherwise, shall be exempt from disclosure 
under section 552 of title 5, United States Code, and the 
disclosure of such information by the OAC or any person 
is prohibited. 
SEC. 108. LEGAL ASSISTANCE PROGRAM. 
(a) IN GENERAL.—The OAC shall implement a legal 
assistance program for the purpose of providing legal rep-
resentation to claimants. The OAC shall maintain a roster 
of qualified counsel who agree to provide services to claim-
ants under rules, practices, and procedures established by 
the Administrator. 
(b) FREE CHOICE OF COUNSEL.—Claimants shall 
not be required to use counsel provided or recommended 
by the OAC, but shall retain their right to be assisted by 
counsel of their choice. 
(c) LEGAL ASSISTANCE.—The OAC shall adopt rules 
concerning the reasonableness of fees, and all legal rep-
resentation of persons asserting asbestos claims shall com-
ply with such rules. 
SEC. 109. TIME LIMITS FOR DISPOSITIONS. 
(a) IN GENERAL.—If the Medical Director fails to 
meet the time limits for an initial decision provided under 
this Act with respect to more than 30 percent of claims, 
then the Administrator shall take such action as may be 
necessary, including increasing staff and administrative 
assessments under section 401, to ensure compliance with 
such time limit with regard to at least 70 percent of 
claims. 
(b) NO OFFER.—If the Trustee fails to make an offer 
within 120 days after the Administrator’s receipt of a 
complete application under section 102 with respect to 
more than 30 percent of claims, then the Administrator
shall take such action as may be necessary, including in-
creasing staff and administrative assessments under sec-
tion 401, to ensure compliance with such time limit with 
regard to at least 70 percent of claims. 
(c) DUTIES.—The duties established by subsections 
(a) and (b) shall be non-discretionary and enforceable by 
an order of mandamus from any judge of the United 
States Court of Federal Claims. 
(d) EXCEPTIONS.—The Administrator may by rule 
establish exceptions to the time limits in this section. Such 
rules shall take into consideration the complexity of the 
case, the extent to which delays are attributable to the 
fault or neglect of the claimant or the claimant’s attorney 
and other factors that are beyond the control of the OAC. 
TITLE II—LAW APPLICABLE TO 
ASBESTOS ADJUDICATIONS 
SEC. 201. MEDICAL ELIGIBILITY. 
A claimant may recover compensation for damages 
caused by an eligible medical condition only if the claimant 
presents a certificate of medical eligibility establishing its 
existence. A certificate of medical eligibility shall be con-
clusive unless rebutted by clear and convincing evidence. 
However, a certificate of medical eligibility shall not be 
conclusive as to allegations regarding exposure to asbestos
or when medical eligibility is established pursuant to sec-
tion 304(b).
SEC. 202. DAMAGES. 
A claimant who establishes an eligible medical condi-
tion shall be entitled to compensatory damages to the ex-
tent provided by applicable law, including damages for 
emotional distress, pain and suffering, and medical moni-
toring where authorized. Such damages shall not include 
punitive damages or damages solely for enhanced risk of 
a future condition, except as provided in section 208(d). 
SEC. 203. STATUTE OF LIMITATIONS OR REPOSE. 
No defense to an asbestos claim based on a statute 
of limitations or statute of repose, laches, or any other 
defense based on the timeliness of the claim shall be recog-
nized or allowed, unless such claim was untimely as of the 
date of enactment of this Act. No claim shall be deemed 
to have accrued until and unless the claimant’s condition 
would have qualified as an eligible medical condition under 
section 302, 303, 304, or 305. 
SEC. 204. COME BACK RIGHTS. 
Notwithstanding any other provision of law, a judg-
ment or settlement of an asbestos claim for a non-malig-
nant disease shall not preclude a subsequent claim with 
respect to the same exposed person for an eligible medical 
condition pursuant to section 301(b), 303, 304, or 305.
SEC. 205. CLASS ACTIONS, AGGREGATIONS OF CLAIMS AND 
VENUE. 
(a) CONSOLIDATIONS.—No joinder of parties, aggre-
gation of claims, consolidation of actions, extrapolation, 
or other device to determine multiple asbestos claims on 
a collective basis shall be permitted without the consent 
of all parties, except as provided in subsection (b) or un-
less the court, pursuant to an exercise of judicial authority 
to promote the just and efficient conduct of asbestos civil 
actions, orders such procedures, including the transfer for 
consolidation, to determine multiple asbestos claims on a 
collective basis. 
(b) CLASS ACTION SUITS.—In any civil action assert-
ing an asbestos claim, a class action may be allowed with-
out the consent of all parties if the requirements of Rule 
23, Federal Rules of Civil Procedure are satisfied. 
(c) VENUE.—At the election of the claimant, an as-
bestos claim may be filed in any jurisdiction where the 
claimant is alleging that the claimant was exposed to as-
bestos or where the claimant is currently domiciled. 
(d) REMOVAL.—Any party in a civil action that in-
volves a violation of subsection (a), (b) or (c) of this sec-
tion may remove such action to an appropriate district 
court of the United States. The district courts of the 
United States shall have jurisdiction of all civil actions re-
moved pursuant to this section without regard to diversity 
of citizenship or amount in controversy. 
(e) ADMINISTRATIVE PROCEEDINGS.—In any pro-
ceeding under section 105, the Administrative Law Judge 
may order adjudication of claims on a collective basis. 
SEC. 206. JOINT AND SEVERAL LIABILITY. 
This Act shall not be construed to limit joint and sev-
eral liability under applicable Federal or State law. In any 
core claim that is successfully asserted against a defend-
ant, such defendant shall be held jointly and severally lia-
ble for full compensatory damages to the claimant not-
withstanding any contrary provision of law. 
SEC. 207. CORE CLAIMS. 
In any core claim, the issues to be decided shall be 
limited to—
(1) whether the exposed person with respect to 
whom a claim is made has or had an eligible medical 
condition; 
(2) whether the exposure of the exposed person 
to the product of the defendant was a substantial 
contributing factor in causing that eligible medical 
condition; and 
(3) the amount of compensation to be provided.
SEC. 208. SPECIAL RULES APPLICABLE TO SECTION 105 AD-
JUDICATIONS. 
(a) APPLICABLE LAW.—Unless otherwise provided in 
this Act, in claims based on State law, the Administrative 
Law Judge shall, with respect to each defendant, apply 
the substantive law of the State which has the most sig-
nificant relationship to the exposure and the parties. 
(b) FULL COMPENSATORY DAMAGES IN WRONGFUL 
DEATH CASES.—Notwithstanding any contrary provision 
of State law, full compensatory damages, including dam-
ages for non-economic loss, shall be awarded in wrongful 
death claims involving mesothelima. In all other cases, 
damages for non-economic loss may be awarded to the ex-
tent that they are available pursuant to applicable law. 
(c) PENALTY FOR INADEQUATE OFFER.—In any pro-
ceeding against a defendant by a claimant under section 
105, and in any proceeding by the Trustee, if the final 
offer made by any defendant is less than the share of the 
total liability awarded against that defendant, a penalty 
shall be added to the award equal to 100 percent of the 
difference between the defendant’s settlement offer under 
section 103(b) and the lesser of—
(1) the defendant’s share of the offer made by 
the Trustee under section 103(b); or 
(2) the defendant’s share of the award made 
under section 105.
(d) PUNITIVE DAMAGES.—Punitive damages may be 
awarded against a defendant if the claimant establishes 
by clear and convincing evidence that the conduct carried 
out by the defendant with a conscious, flagrant indiffer-
ence to the rights or safety of others was the proximate 
cause of the harm that is the subject of the asbestos claim. 
Punitive damages may not exceed 3 times the amount of 
the award pursuant to a section 105 adjudication plus any 
penalties added to that award pursuant to subsection (c). 
SEC. 209. SPECIAL RULES APPLICABLE TO THE TRUSTEE. 
In an action by the Trustee as assignee of the claim-
ant, the award under section 104(d) shall include compen-
satory damages for the claimant’s injury and all punitive 
damages under section 208(d), any penalties for inad-
equate offers by defendants, and the Trustee’s costs in 
establishing the claim, including reasonable attorneys’ fees 
and expenses and an allowance for interest on the amount 
paid by the Fund to the claimant under section 104. Inter-
est shall be calculated from the time of such payments, 
and in accordance with Title IV. All economic and non-
economic damages recovered by the Fund in excess of 200 
percent of the amount paid to the claimant pursuant to 
section 104 and all punitive damages under section 208(d) 
shall be paid to the settling claimant. The fact that the 
claimant has accepted an offer of compensation by the
Trustee, and the amount and terms of such offer, shall 
not be admissible in any adjudication of a claim brought 
by the Trustee against any defendant. 
TITLE III—ELIGIBLE MEDICAL 
CATEGORIES 
SEC. 301. ELIGIBLE MEDICAL CATEGORIES. 
(a) IN GENERAL.—The eligible medical categories 
under this Act are asbestos-related non-malignant condi-
tions with impairment, asbestos-related mesothelioma, as-
bestos-related lung cancer, and asbestos-related other can-
cer. 
(b) ESTABLISHING EXISTENCE.—A claimant may es-
tablish the existence of an eligible medical condition either 
by demonstrating that the exposed person meets the 
standard criteria provided in sections 302, 303, 304, and 
305 or by demonstrating to an exceptional medical claims 
panel, through reliable evidence, that the exposed person 
has an asbestos-related impairment that is substantially 
comparable to the condition of an exposed person who 
would satisfy the requirements of a given medical cat-
egory. The Administrator, after consultation with the 
Medical Advisory Committee, may adopt rules consistent 
with this section to assure consistency and efficiency in 
the designation of claims as exceptional medical claims.
SEC. 302. ASBESTOS-RELATED NON-MALIGNANT CONDI-
TIONS WITH IMPAIRMENT. 
(a) IN GENERAL.—The standard criteria for asbes-
tos-related non-malignant conditions with impairment 
shall include—
(1) clinical evidence of asbestosis, 
(2) pathological evidence of asbestosis, or 
(3) evidence of bilateral pleural thickening with 
impairment. 
(b) OBSTRUCTIVE LUNG DISEASE.—A claimant shall 
not be disqualified from compensation under this category 
solely because an exposed person who otherwise meets the 
requirements for impairment has a reduced FEV1/FVC 
ratio indicating obstructive lung disease. In that event, the 
exceptional medical claims panel shall determine, giving 
due regard to the evidence that any impairment is related 
to obstructive disease and taking into consideration all 
available evidence, whether an asbestos-related restrictive 
disease substantially contributes to the impairment of the 
exposed person. Such a contribution shall be presumed if 
the panel concludes, based upon the findings of a certified 
B-reader, that the exposed person’s chest x-ray is ILO 
Grade 2/1 or more. 
SEC. 303. ASBESTOS-RELATED MESOTHELIOMA. 
The standard criteria for asbestos-related mesothe-
lioma shall include a diagnosis by a qualified physician of
a malignant mesothelioma caused or contributed to by ex-
posure to asbestos with a primary site in the pleura, peri-
toneum, or like tissue, or reasonably equivalent clinical di-
agnosis in the absence of adequate tissue for pathological 
diagnosis. 
SEC. 304. ASBESTOS-RELATED LUNG CANCER. 
(a) IN GENERAL.—The standard criteria for asbes-
tos-related lung cancer shall include—
(1) a diagnosis by a qualified physician of lung 
cancer that the physician concludes was caused or 
contributed to by exposure to asbestos; 
(2) a latency period of at least 10 years; and 
(3) either—
(A) evidence of asbestosis or bilateral pleu-
ral thickening with impairment sufficient to 
meet the requirements of section 302 or to 
qualify as an exceptional medical claim under 
section 301(b); or 
(B) chest x-rays which, in the opinion of a 
certified B-reader, demonstrate asbestos-related 
bilateral pleural plaques or thickening, and 7.5 
equivalent-years of exposure to asbestos-con-
taining materials in employment regularly re-
quiring work in the immediate area of visible 
asbestos dust.
(b) HISTORY OF SMOKING.—If a finding of asbestos-
related lung cancer is made pursuant to paragraph (3)(B) 
and the exposed person has a substantial history of smok-
ing, which shall be defined by rule, the claimant shall be 
medically eligible for compensation, but the finding of as-
bestos-related lung cancer shall not be conclusive as to 
causation for purposes of section 201. 
SEC. 305. ASBESTOS-RELATED OTHER CANCER. 
The standard criteria for asbestos-related other can-
cer shall include a diagnosis by a qualified physician of 
a malignant primary tumor of the larynx, oral-pharynx, 
gastro-intestinal tract, or stomach, caused or contributed 
to by exposure to asbestos, together with evidence of a 
condition sufficient to meet the requirements of section 
302 or to qualify as an exceptional medical claim under 
section 301(b). 
SEC. 306. MEDICAL TESTING REIMBURSEMENT. 
(a) LEVEL A.—A claimant with at least 4 equivalent-
years of heavy exposure to asbestos, whose chest x-ray 
shows either small irregular opacities of ILO Grade 1/0 
or bilateral pleural thickening of ILO Grade B/2, shall be 
eligible for reimbursement of 100 percent of out-of-pocket 
expenses for any medical testing required under section 
102, up to a ceiling of $1500. Level A claimants shall be 
eligible at 3 year intervals for similar reimbursement of
future medical testing expenses for up to 2 additional oc-
casions. Level A reimbursements shall be treated as ad-
ministrative expenses of the OAC and paid for by defend-
ants under section 401. 
(b) LEVEL B.—The Administrator shall, subject to 
the availability of appropriated funds, reimburse up to 100 
percent of the out-of-pocket expenses for any medical test-
ing required under section 102, up to a ceiling established 
by rule, with the approval of the Trustee, for any claimant 
with at least one equivalent-year of heavy exposure to as-
bestos who meets the medical but not the exposure re-
quirements of Level A. Level B claimants may be eligible 
for similar reimbursement of future medical testing ex-
penses for up to 2 additional occasions at least 3 years 
apart. The Administrator shall adjust periodically the 
amount of the cash payment to reflect changes in medical 
costs. Level B reimbursements shall be treated as adminis-
trative expenses of the OAC and paid for by defendants 
under section 401. 
(c) CERTIFIED LABS.—The Administrator is author-
ized to establish a program for the certification of labora-
tories to provide medical testing under this section. 
(d) EXPOSURE VERIFICATION.—The Administrator 
shall establish audit and other procedures to provide rea-
sonable assurance that statements concerning exposure
made by claimants seeking medical testing reimbursement 
under this section are accurate. 
TITLE IV—FUNDING 
SEC. 401. ASSESSMENT AND ENFORCEMENT. 
(a) RULES.—The Administrator shall adopt rules for 
calculating and collecting from defendants all costs associ-
ated with the determination of claims and payments to 
claimants. 
(b) TRUSTEE.—The Trustee shall have authority to 
bring an action in the district courts of the United States 
to enforce any obligation imposed on any person by this 
section and such courts shall have exclusive jurisdiction 
of such actions without regard to the amount in con-
troversy or citizenship of the parties. The district court 
shall not entertain any defense other than lack of jurisdic-
tion in any action by the Trustee under this subsection. 
(c) TRUSTEE PREVAILS.—In any action under sub-
section (b) in which the Trustee prevails, the Trustee shall 
be entitled to costs, including reasonable attorneys’ fees, 
and interest on any unpaid amount. 
(d) JUDICIAL REVIEW.—A defendant may challenge 
the legality or amount of any assessment only by seeking 
judicial review in the United States Court of Federal 
Claims after paying the disputed amount. If successful, 
the defendant shall be awarded interest.
SEC. 402. FISCAL AND FINANCIAL MANAGEMENT OF THE 
ASBESTOS COMPENSATION FUND. 
(a) APPLICABILITY OF CREDIT REFORM ACT PRIN-
CIPLES; FISCAL MANAGEMENT RULES.—Except as pro-
vided in this section, the operations of the Fund related 
to settlement payments under section 104, and associated 
recoveries from defendants, shall be governed by the Fed-
eral Credit Reform Act of 1990 (2 U.S.C. 661 et seq.), 
notwithstanding the status of the Fund as a governmental 
entity. The Administrator shall promulgate rules, ap-
proved by the Office of Management and Budget, for the 
fiscal management of the Fund. Such rules and their ap-
plication shall not be subject to judicial review and shall, 
as regards payments under section 104—
(1) provide all reasonable assurance that, over 
an appropriate time period, the subsidy rate associ-
ated with the net litigation risk of the Fund is zero; 
(2) provide all reasonable assurance that, in 
any given year, the subsidy rate associated with the 
net litigation risk of the Fund is no more than 2 
percent; 
(3) provide for the allocation of receipts from 
defendants to various Fund accounts, including the
Fund’s financing account, program account, and an 
account for salaries and expenses (which shall in-
clude litigation costs); and
(4) provide specific instructions for the Trustee 
to reduce payments by the Fund when necessary to 
meet the solvency requirements of this subsection. 
(b) FINANCING OF THE FUND, SETTLEMENT PAY-
MENTS TO CLAIMANTS.—
(1) CREDIT REFORM PRINCIPLES.—The Fund 
is authorized to receive from defendants, as offset-
ting receipts, any amounts related to settlements or 
judgments, including damages, interest, litigation 
costs, specific administrative costs that may be re-
quired by the Administrator through rulemaking, 
and interest costs incurred by the Fund in connec-
tion with payment of settlement offers made under 
section 103. Amounts received from defendants as 
interest shall be sufficient to pay interest costs due 
to the United States Treasury from the financing 
account, plus the subsidy costs of the program ac-
count, provided that the latter amounts may not ex-
ceed 3 percent of the amount of any settlement or 
award. Recoveries on a claim by the Fund in excess 
of the settlement amount paid to the claimant and 
other costs of the Fund which are not paid to the 
claimant under section 209 shall be available to the 
program account as a reduction to subsidy costs in 
the current or any subsequent year.
(2) AUTHORITY.—The program account shall 
have permanent indefinite authority, not subject to 
further appropriation, to transfer funds to the fi-
nance account in accordance with principles of the 
Credit Reform Act. 
SEC. 403. AUTHORIZATION FOR APPROPRIATIONS AND OFF-
SETTING COLLECTIONS. 
(a) IN GENERAL.—There are authorized to be appro-
priated—
(1) to the OAC such sums as may be required 
to perform responsibilities under this Act; 
(2) to the United States Court of Federal 
Claims, such sums as may be required to carry out 
its responsibilities under this Act; and 
(3) to the OAC an amount not to exceed $100 
million, for a one-time loan to the Fund in connec-
tion with startup expenses, such loan to be repaid by 
the Fund with interest. 
The total of appropriations provided under this subsection 
in the first year after the date of enactment not exceed 
$250 million and in any subsequent year not exceed $150 
million. 
(b) OFFSETTING COLLECTIONS OF ADMINISTRATIVE 
ASSESSMENTS.—The OAC is authorized to receive and to 
expend in any year, as offsetting collections, all adminis-
trative assessments or prepaid administrative assessments 
and all costs and penalties paid to it. 
TITLE V—TRANSITION 
SEC. 501. APPLICABILITY; TRANSITIONAL CIVIL ACTIONS. 
(a) IN GENERAL.—This Act shall be effective upon 
its date of enactment with respect to any civil action as-
serting an asbestos claim in which trial has not com-
menced as of that date. 
(b) PENDING CLAIM.—A claimant with a pending 
civil claim on the date of enactment shall not be required 
to obtain a certificate of medical eligibility or otherwise 
exhaust the procedures set forth in title I if trial com-
mences within 6 months of the date of enactment of this 
Act. This 6-month period may be extended by the Attor-
ney General for up to an additional 6 months if required 
for the orderly implementation of this Act, and after re-
porting to the Congress the reasons for any such exten-
sion. 
(c) RIGHT TO SUE LETTER.—If a claimant with—
(1) a pending civil action on the date of enact-
ment of this Act, and 
(2) a scheduled trial date within one year after 
the date of enactment of this Act—
does not receive an initial decision on medical eligibility 
within the time period prescribed in section 102(c), the
claimant may request a right-to sue letter from the Ad-
ministrator at any time prior to the issuance of that initial 
decision. If the Attorney General determines that the 6-
month period in subsection (b) should be extended, the 
one-year period in the preceding sentence shall be similarly 
extended. The Administrator shall issue a right-to-sue let-
ter or an initial decision under section 102 within 10 days 
following the receipt of the claimant’s request. A claimant 
who receives a right-to-sue letter may assert the claimant’s 
asbestos claim in any competent forum notwithstanding 
section 101(b). 
(d) CLAIM IN ANOTHER FORUM.—Any claimant who 
asserts his claim in a forum other than the OAC under 
subsections (b) or (c) must demonstrate that the exposed 
person has qualified for medical eligibility under section 
301, 302, 303, 304, 305, or 306. 
TITLE VI—DEFINITIONS 
SEC. 601. DEFINITIONS. 
In this Act: 
(1) ASBESTOS
CLAIM.—The term ‘‘asbestos 
claim’’ means any claim for damages or other relief, 
arising out of, based on, or related to the health ef-
fects of exposure to asbestos, including any claim for 
personal injury, death, mental or emotional injury, 
risk of disease or other injury, or the costs of med-
ical monitoring or surveillance, and including any 
claim made by or on behalf of any exposed person 
or any representative, spouse, parent, child, or other 
relative of any exposed person. The term does not 
include any claim for workers’ compensation bene-
fits, or any claim by an employer or insurer for re-
imbursement from a third-party for benefits paid 
under a workers’ compensation plan, or any claim 
for benefits under a veterans’ benefits program. 
(2) ASBESTOS
TRUST.—The term ‘‘asbestos 
trust’’ means a court-supervised trust established to 
resolve asbestos claims arising directly or indirectly 
from exposure to asbestos or asbestos-containing 
products, including a trust created pursuant to the 
bankruptcy laws of the United States or Rule 23 of 
the Federal Rules of Civil Procedure. 
(3) CERTIFICATE OF MEDICAL ELIGIBILITY.—
The term ‘‘certificate of medical eligibility’’ means a 
certificate issued to a claimant pursuant to this Act 
certifying that an exposed person meets the require-
ments of one or more eligible medical categories or 
qualifies as an exceptional medical claim. 
(4) CERTIFIED
B-READER.—The term ‘‘cer-
tified B-reader’’ means an individual qualified as a 
‘‘final’’ or ‘‘B-reader’’ under 42 C.F.R. 37.51(b)
(1997) (and any subsequent revisions thereof) whose 
certification is current. 
(5) CHEST X-RAYS.—The term ‘‘chest x-rays’’ 
means chest radiographs taken in at least 2 views 
(Posterior-Anterior and Lateral) and graded quality 
1 for reading according to the criteria established by 
the ILO. If the claimant is unable to provide quality 
1 chest x-rays because of death or because of an in-
ability to have new chest x-rays taken, chest x-rays 
graded quality 2 will be acceptable. 
(6) CIVIL
ACTION.—The term ‘‘civil action’’ 
means any action, lawsuit, or proceeding in any 
State, Federal, or tribal court, but does not in-
clude—
(A) a criminal action; or 
(B) an action relating to State or Federal 
workers’ compensation laws, or a proceeding for 
benefits under any veterans’ benefits program. 
(7) CLAIMANT.—The term ‘‘claimant’’ means 
any exposed person or the person’s legal representa-
tive, and any relative of an exposed person or their 
legal representative, who asserts an asbestos claim. 
(8) CLINICAL EVIDENCE OF ASBESTOSIS.—The 
term ‘‘clinical evidence of asbestosis’’ means a diag-
nosis of pulmonary asbestosis by a qualified physi-
cian based on the minimum objective criteria of—
(A) chest x-rays for which a B-reader re-
port is furnished showing small irregular opac-
ities of ILO Grade 1/0 and pulmonary function 
testing and physical examination that show ei-
ther—
(i) FVC <80% of predicted value 
with FEV1/FVC≥ 75% (actual value); or 
(ii) TLC <80% of predicted value, 
with either DLCO≤ 76% of predicted value 
or bilateral basilar crackles, and also the 
absence of any probable explanation for 
this DLCO result or crackles finding other 
than the presence of asbestos lung disease; 
or 
(B) chest x-rays for which a B-reader re-
port is furnished showing small irregular opac-
ities of ILO Grade 1/1 or greater and pul-
monary function testing that shows either—
(i) FVC <80% of predicted value 
with FEV1/FVC≥ 72% (actual value) or, if 
the individual tested is at least 68 years 
old at the time of the testing, with FEV1/
FVC≥ 65% (actual value); or
(ii) TLC <80% of predicted value. 
(9) 
COMPENSATORY
DAMAGES.—The 
term 
‘‘compensatory damages’’ means damages awarded 
for economic loss, such as medical expenses, as well 
as non-economic loss. Non-economic loss includes 
subjective, non-pecuniary loss, such as pain, suf-
fering, inconvenience, emotional distress, loss of soci-
ety and companionship, and loss of consortium. 
(10) CORE
CLAIM.—The term ‘‘core claim’’ 
means an asbestos claim against a defendant who ei-
ther—
(A) manufactured any asbestos-containing 
product which released asbestos fibers to which 
the exposed person was exposed, and paid out 
$50 million in respect of such claims cumula-
tively over the 10 year period preceding the fil-
ing of the claim; or 
(B) was not a manufacturer but paid out 
$100 million in respect of such claims cumula-
tively over the 10 year period preceding the fil-
ing of the claim; provided that the alleged liabil-
ity is not based upon the control or ownership 
of property. 
(11) DEFENDANT.—The term ‘‘defendant’’ 
means any person who is or may be responsible for
the asbestos-related condition of the exposed person 
and who is so notified by the Administrator pursu-
ant to title I. The term does not include—
(A) an asbestos trust in existence as of the 
date of enactment of this Act unless the trust 
elects to be covered by this Act under section 
701(b); or 
(B) the United States Government or a 
State government. 
(12) DLCO.—The term ‘‘DLCO’’ means single-
breath diffusing capacity of the lung (carbon mon-
oxide), which is a measure of the volume of carbon 
monoxide transferred from the alveoli to blood in the 
pulmonary capillaries for each unit of driving pres-
sure of the carbon monoxide. 
(13) EQUIVALENT-YEAR.—The term ‘‘equiva-
lent-year’’ means a measure of exposure to asbestos 
adjusted to reflect varying exposure levels typical of 
different occupations. Each year of exposure in 
which an exposed person’s primary occupation in-
volved the direct installation, repair, or removal of 
asbestos-containing products, shall count as one 
year. Each year of such occupational exposure in 
which the exposed person’s primary occupation in-
volved either the direct manufacture of asbestos-con-
taining products using raw asbestos fiber or the di-
rect installation, repair, or removal of asbestos-con-
taining products in a shipyard during World War II, 
shall count as 2 years. Each year of exposure in oc-
cupations not described above shall count as one-half 
year. 
(14) 
EVIDENCE
OF
BILATERAL
PLEURAL 
THICKENING
WITH
IMPAIRMENT.—The term ‘‘evi-
dence of bilateral pleural thickening with impair-
ment’’ means a diagnosis of bilateral pleural thick-
ening by a qualified physician based on the min-
imum objective criteria of either—
(A) chest x-rays for which a B-reader re-
port is furnished showing bilateral pleural 
thickening of ILO Grade B/2 with pulmonary 
function testing and physical examination that 
show either—
(i) FVC <80% of predicted value 
with FEV1/FVC≥ 75% (actual value) or 
(ii) TLC <80% of predicted value, 
with either DLCO≤ 76% of predicted value 
or bilateral basilar crackles, and also the 
absence of any probable explanation for 
this DLCO result or crackles finding other
than the presence of asbestos lung disease; 
or 
(B) chest x-rays for which a B-reader re-
port is furnished showing bilateral pleural 
thickening of ILO Grade C/2 or greater; and 
pulmonary function testing that shows either—
(i) FVC <80% of predicted value 
with FEV1/FVC≥ 72% (actual value) or, if 
the individual tested is at least 68 years 
old at the time of the testing, with FEV1/
FVC≥ 65% (actual value); or 
(ii) TLC <80% of predicted value. 
(15) EXPOSED
PERSON.—The term ‘‘exposed 
person’’ means any person who has been exposed in 
any State (or while working aboard a United States 
vessel outside the United States) to asbestos or to 
asbestos-containing products. 
(16) FEV1.—The term ‘‘FEV1’’ means forced 
expiratory volume (1 second), which is the maximal 
volume of air expelled in one second during perform-
ance of the spirometric test for forced vital capacity 
(FVC). 
(17) FUND.—The term ‘‘Fund’’ means the As-
bestos Compensation Fund.