sessments 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 com-
plete 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 increasing staff
and administrative assessments under section 401, to en-
sure 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 es-
tablish 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 conclu-
sive unless rebutted by clear and convincing evidence. How-
ever, a certificate of medical eligibility shall not be conclu-
sive as to allegations regarding exposure to asbestos or when
medical eligibility is established pursuant to section 304(b).
SEC. 202. DAMAGES.
A claimant who establishes an eligible medical condi-
tion shall be entitled to compensatory damages to the extent
provided by applicable law, including damages for emo-
tional distress, pain and suffering, and medical monitoring
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 recognized 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 sec-
tion 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-malignant
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, aggrega-
tion of claims, consolidation of actions, extrapolation, or
other device to determine multiple asbestos claims on a col-
lective basis shall be permitted without the consent of all
parties, except as provided in subsection (b) or unless the
court, pursuant to an exercise of judicial authority to pro-
mote the just and efficient conduct of asbestos civil actions,
orders such procedures, including the transfer for consolida-
tion, 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 asbes-
tos claim may be filed in any jurisdiction where the claim-
ant is alleging that the claimant was exposed to asbestos
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 section
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 removed 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 defendant,
such defendant shall be held jointly and severally liable for
full compensatory damages to the claimant notwithstanding
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 con-
tributing factor in causing that eligible medical con-
dition; 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 significant
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 indifference 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 inadequate
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. Interest shall be
calculated from the time of such payments, and in accord-
ance with Title IV. All economic and non-economic dam-
ages 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 accept-
ed an offer of compensation by the Trustee, and the amount
and terms of such offer, shall not be admissible in any adju-
dication of a claim brought by the Trustee against any de-
fendant.
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 cancer.
(b) ESTABLISHING EXISTENCE.—A claimant may es-
tablish the existence of an eligible medical condition either
by demonstrating that the exposed person meets the stand-
ard 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 com-
parable to the condition of an exposed person who would
satisfy the requirements of a given medical category. The
Administrator, after consultation with the Medical Advi-
sory Committee, may adopt rules consistent with this sec-
tion 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 asbestos-
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
exposure 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 asbestos-
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 qual-
ify as an exceptional medical claim under sec-
tion 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 as-
bestos 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 cau-
sation for purposes of section 201.
SEC. 305. ASBESTOS-RELATED OTHER CANCER.
The standard criteria for asbestos-related other cancer
shall include a diagnosis by a qualified physician of a ma-
lignant primary tumor of the larynx, oral-pharynx, gastro-
intestinal tract, or stomach, caused or contributed to by ex-
posure to asbestos, together with evidence of a condition suf-
ficient 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 bilat-
eral 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 med-
ical testing expenses for up to 2 additional occasions. Level
A reimbursements shall be treated as administrative ex-
penses of the OAC and paid for by defendants 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 testing
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 asbes-
tos who meets the medical but not the exposure requirements
of Level A. Level B claimants may be eligible for similar
reimbursement of future medical testing expenses for up to
2 additional occasions at least 3 years apart. The Adminis-
trator shall adjust periodically the amount of the cash pay-
ment to reflect changes in medical costs. Level B reimburse-
ments shall be treated as administrative 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 reason-
able 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 controversy
or citizenship of the parties. The district court shall not
entertain any defense other than lack of jurisdiction 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 AS-
BESTOS COMPENSATION FUND
(a) APPLICABILITY OF CREDIT REFORM ACT PRIN-
CIPLES; FISCAL MANAGEMENT RULES.—Except as provided
in this section, the operations of the Fund related to settle-
ment payments under section 104, and associated recoveries
from defendants, shall be governed by the Federal Credit
Reform Act of 1990 (2 U.S.C. 661 et seq.), notwithstanding
the status of the Fund as a governmental entity. The Ad-
ministrator shall promulgate rules, approved by the Office
of Management and Budget, for the fiscal management of
the Fund. Such rules and their application shall not be sub-
ject 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 de-
fendants to various Fund accounts, including the
Fund’s financing account, program account, and an
account for salaries and expenses (which shall include
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 offsetting re-
ceipts, any amounts related to settlements or judg-
ments, including damages, interest, litigation costs,
specific administrative costs that may be required by
the Administrator through rulemaking, and interest
costs incurred by the Fund in connection with pay-
ment 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 account, provided that
the latter amounts may not exceed 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 reduc-
tion 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 finance
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
appropriated—
(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 respon-
sibilities 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 mil-
lion.
(b) OFFSETTING COLLECTIONS OF ADMINISTRATIVE
ASSESSMENTS.—The OAC is authorized to receive and to
expend in any year, as offsetting collections, all administra-
tive 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 asserting
an asbestos claim in which trial has not commenced as of
that date.
(b) PENDING CLAIM.—A claimant with a pending civil
claim on the date of enactment shall not be required to ob-
tain a certificate of medical eligibility or otherwise exhaust
the procedures set forth in title I if trial commences within
6 months of the date of enactment of this Act. This 6-month
period may be extended by the Attorney General for up to
an additional 6 months if required for the orderly imple-
mentation of this Act, and after reporting to the Congress
the reasons for any such extension.
(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 Admin-
istrator 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 ex-
tended. The Administrator shall issue a right-to-sue letter
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 sub-
sections (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 effects
of exposure to asbestos, including any claim for per-
sonal injury, death, mental or emotional injury, risk
of disease or other injury, or the costs of medical mon-
itoring 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 benefits, or any
claim by an employer or insurer for reimbursement
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 prod-
ucts, including a trust created pursuant to the bank-
ruptcy 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 cer-
tificate issued to a claimant pursuant to this Act cer-
tifying that an exposed person meets the requirements
of one or more eligible medical categories or qualifies
as an exceptional medical claim.
(4) CERTIFIED B-READER.—The term ‘‘certified
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 include—
(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
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 small irregular opac-
ities of ILO Grade 1/1 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.
(9) COMPENSATORY DAMAGES.—The term ‘‘com-
pensatory damages’’ means damages awarded for eco-
nomic loss, such as medical expenses, as well as non-
economic loss. Non-economic loss includes subjective,
non-pecuniary loss, such as pain, suffering, inconven-
ience, emotional distress, loss of society and compan-
ionship, and loss of consortium.
(10) CORE
CLAIM.—The term ‘‘core claim’’
means an asbestos claim against a defendant who
either—
(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 cumulatively
over the 10 year period preceding the filing 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 asbes-
tos-related condition of the exposed person and who is
so notified by the Administrator pursuant 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 ‘‘equivalent-
year’’ means a measure of exposure to asbestos ad-
justed to reflect varying exposure levels typical of dif-
ferent occupations. Each year of exposure in which an
exposed person’s primary occupation involved the di-
rect installation, repair, or removal of asbestos-con-
taining products, shall count as one year. Each year
of such occupational exposure in which the exposed
person’s primary occupation involved either the direct
manufacture of asbestos-containing products using
raw asbestos fiber or the direct installation, repair, or
removal of asbestos-containing products in a shipyard
during World War II, shall count as 2 years. Each
year of exposure in occupations not described above
shall count as one-half year.
(14) EVIDENCE OF BILATERAL PLEURAL THICK-
ENING WITH IMPAIRMENT.—The term ‘‘evidence of bi-
lateral pleural thickening with impairment’’ means a
diagnosis of bilateral pleural thickening by a quali-
fied physician based on the minimum objective cri-
teria of either—
(A) Chest x-rays for which a B-reader re-
port is furnished showing bilateral pleural thick-
ening of ILO Grade B/2 with pulmonary func-
tion 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 thick-
ening of ILO Grade C/2 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.
(15) EXPOSED PERSON.—The term ‘‘exposed per-
son’’ 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 ex-
piratory volume (1 second), which is the maximal vol-
ume of air expelled in one second during performance
of the spirometric test for forced vital capacity (FVC).
(17) FUND.—The term ‘‘Fund’’ means the Asbes-
tos Compensation Fund.
(18) 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.
(19) ILO.—The term ‘‘ILO’’ means the Inter-
national Labour Organization.
(20) ILO GRADE.—The term ‘‘ILO grade’’ means
the radiological ratings for the presence of lung or
pleural changes by chest x-ray as established from
time to time by the ILO.
(21) LATENCY PERIOD.—The term ‘‘latency pe-
riod’’ means the period from the date of the exposed
person’s first exposure to asbestos or an asbestos-con-
taining product to the date of manifestation of the
condition claimed.
(22) LUNG CANCER.—The term ‘‘lung cancer’’
means a primary malignant bronchogenic tumor, of
any cell type, caused or contributed to by exposure to
asbestos.
(23) MANIFESTATION.—The term ‘‘manifesta-
tion’’ means either the date of the actual diagnosis of
the condition claimed, or the date upon which the
clinical records and available tests indicate that the
condition could reasonably have been diagnosed by a
qualified physician.
(24) NET LITIGATION RISK.—The term ‘‘net liti-
gation risk’’ means the risk to the Asbestos Compensa-
tion Fund that amounts paid out to claimants, plus
associated interest and litigation expenses, will exceed
amounts recovered from defendants, expressed as a
percentage of sums expended, and estimated for a spe-
cific cohort of transactions. Losses on particular
claims are netted against excess recoveries on other
claims.
(25) OAC.—The term ‘‘OAC’’ means the Office of
Asbestos Compensation.
(25) OCCUPATIONAL HISTORY.—The term ‘‘occu-
pational history’’ means a listing of all employment
positions, providing for the dates and location of em-
ployment, the employer, and a description of job re-
sponsibilities and activities.
(26) PARTY.—The term ‘‘party’’ does not include
the United States Government or a State government.
(27) 
PATHOLOGICAL
EVIDENCE
OF
ASBES-
TOSIS.—The term ‘‘pathological evidence of asbes-
tosis’’ means diagnosis of pulmonary asbestosis by a
qualified physician based on a finding that more
than one representative section of lung tissue other-
wise uninvolved with any other process (e.g., cancer
or 
emphysema) 
demonstrates 
a 
pattern 
of
peribronchiolar or parenchymal scarring in the pres-
ence of characteristic asbestos bodies, and also that
there is no other more likely explanation for the pres-
ence of the fibrosis.
(28) PERSON.—The term ‘‘person’’ means an in-
dividual, trust, firm, corporation, association, part-
nership, or joint venture. 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 any
State government.
(29) PHYSICIAN.—The term ‘‘physician’’ means
a medical doctor or doctor of osteopathy currently li-
censed to practice medicine in any State who has not,
within the 5-year period prior to the date of enact-
ment of this Act, spent more than one half of the doc-
tor’s professional time, or derived more than one-half
of the doctor’s professional income, either annually or
in total, either reviewing or testifying in any forum
on medical-legal issues related to asbestos.
(30) PREDICTED VALUE.—The term ‘‘predicted
value’’ means a published reference to the normal
breathing capacity of healthy populations based on
age, height, and gender, as approved by the Medical
Director, pursuant to a rule, issued within 120 days
of the date of enactment. For the purposes of this Act,
the use of any published, predicted values that are
generally accepted in the medical community shall be
acceptable and such values may not be adjusted for
race.
(31) PULMONARY FUNCTION TESTING.—The term
‘‘pulmonary function testing’’ means tests for forced
vital capacity, lung volume, and diffusing studies
using equipment, tests and standards generally ac-
cepted in the medical community, as approved by the
Medical Director, pursuant to a rule, issued within
120 days of enactment of this Act. Such pulmonary
function test shall not be adjusted for race.
(32) PUNITIVE DAMAGES.—The term ‘‘punitive
damages’’ means damages, in addition to compen-
satory damages, awarded against any person to pun-
ish past conduct or deter that person, or others, from
engaging in similar conduct in the future.
(33) QUALIFIED PHYSICIAN.—The term ‘‘quali-
fied physician’’ means, with respect to a diagnosis or
other medical judgment or procedure under this Act,
an internist, pulmonary specialist, pathologist, radi-
ologist, oncologist, or specialist in occupational medi-
cine with an appropriate subspecialty, as appro-
priate, who is certified by the relevant medical spe-
cialty board.
(34) 
QUALIFYING
NATIONAL
SETTLEMENT
PLAN.—The term ‘‘Qualifying National Settlement
Plan’’ means a written agreement or related series of
written agreements with claimants or with attorneys
or law firms representing claimants, pursuant to
which a person who is or may be responsible for such
claims has resolved or agreed to resolve at least 50
percent of the asbestos claims that were pending
against such person.
(35) STATE.—The term ‘‘State’’ means any
State of the United States, 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 fore-
going.
(36) TLC.—The term ‘‘TLC’’ means total lung
capacity, which is the volume of air in the lung after
maximal inspiration.
(37) TRUSTEE.—The term ‘‘Trustee’’ means the
Trustee of the Asbestos Compensation Fund.
(38) VETERANS’ BENEFITS PROGRAM.—The term
‘‘veterans’ benefits program’’ means any program for
benefits in connection with military service adminis-
tered by the Veterans’ Administration under Title 38,
United States Code.
(39) WORKERS’ COMPENSATION LAW.—The term
‘‘workers’ compensation law’’ means a law respecting
a program administered by a State or the United
States to provide benefits, funded by a responsible em-
ployer or its insurance carrier, for occupational dis-
eases or injuries or for disability or death caused by
occupational diseases or injuries. The term includes
the Longshore and Harbor Workers’ Compensation
Act, (33 U.S.C. 901-944, 948-950), but does not in-
clude the Employer’s Liability Act, (45 U.S.C. chap-
ter 2).
TITLE VII—MISCELLANEOUS
PROVISIONS
SEC. 701. RELATIONSHIP TO OTHER LAWS.
(a) APPLICABILITY OF OTHER FEDERAL LAWS.—The
OAC may, with the approval of the Director of the Office
of Management and Budget, waive the applicability in
whole or in part of personnel and procurement laws and
regulations, provided that any such waiver must be specific,
must be subject to periodic review and evaluation, and must
be reasonably related to the goals of expeditious, profes-
sional, efficient, cost-effective and fair resolution of asbestos
claims.
(b) APPLICATION TO EXISTING ASBESTOS TRUSTS.—
(1) IN GENERAL.—This Act shall not apply to
any asbestos trust in existence as of the date of enact-
ment of this Act, except as provided in paragraph (2).
(2) ELECTION.—An asbestos trust may elect to
be subject to this Act by providing written notice of
such election to the OAC, in which case the trust will
have the same rights and responsibilities under this
Act as any person who is not a trust. A valid election
under this paragraph shall be irrevocable.
(c) SETTLEMENTS
PRESERVED.—Nothing in this
Act—
(1) invalidates any settlement of asbestos claims
entered into prior to the date of enactment of this Act;
or
(2) revokes or negates any asbestos defendant’s
standing offer to settle existing asbestos claims.
(d) OTHER COMPENSATION.—This Act shall not be
construed to affect the scope or operation of any workers’
compensation law or veterans’ disability benefit program,
to affect the exclusive remedy provisions of any such law,
or to authorize any lawsuit which is barred by any such
provision of law.
(e) SUCCESSOR LIABILITY.—Nothing in this Act is in-
tended to displace otherwise applicable law governing any
liability arising from the defendants’ status as transferee
or successor with respect to a change in ownership of cor-
porate assets.
SEC. 702. ANNUAL REPORTS.
The Administrator shall submit an annual report to
the President and Congress.
SEC. 703. ENFORCEMENT.
The Administrator may enforce any obligation im-
posed on any person by this Act in a district court of the
United States, and such courts shall have exclusive jurisdic-
tion over such actions without regard to the amount in con-
troversy or citizenship of the parties. The Administrator,
if successful, shall be entitled to costs, including attorney’s
fees.
SEC. 704. QUALIFYING NATIONAL SETTLEMENT PLAN.
Any defendant which is party to a Qualifying Na-
tional Settlement Plan may elect to defer the application
of this Act (other than sections 201 through 207 and section
501) to asbestos claims against that defendant for a period
not exceeding 7 years from a date relative to the commence-
ment of the Qualified National Settlement Plan. The Ad-
ministrator shall, by rule, adopt procedures for processing
requests for deferral under this section. If the request for
deferral is accepted, the deferred defendant and any asbestos
claims or third party asbestos claims against the deferred
defendant shall not be subject to the provisions of this Act
(other than sections 201 through 207 and section 501).
SEC. 705. SEVERABILITY.
If any provision of this Act or the application of such
provision to any person or circumstance is held invalid,
it is the intent of Congress that the remainder of this Act
and application of such provision to other persons or cir-
cumstances shall not be affected thereby.
SEC. 706. SETTLEMENTS.
For a period of 7 years after the date of enactment
of this Act, a claimant or a defendant may specifically en-
force, in any applicable Federal or State court where the
claimant is alleging that the claimant was exposed to asbes-
tos or where the claimant is currently domiciled, any writ-
ten settlement agreement which was agreed to by the claim-
ant or the claimant’s attorney and the defendant before such
date of enactment.
Calendar No. 449
106TH CONGRESS
2D SESSION
H. R. 1283
[Report No. 106–782]
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.
JULY 24, 2000
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union
and ordered to be printed