127
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 infor-
mation available to the Administrator and iden-
tified to the defendant participant. 
(B) NO
RESPONSE; 
INCOMPLETE
RE-
SPONSE.—If no response in accordance with 
paragraph (5) is received from a defendant par-
ticipant, 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 receiv-
ing 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 pay-
ment made by the participant under this sub-
section, the Administrator shall credit any ex-
cess payment against the future payment obli-
gations of that defendant participant. The 
pendency of a petition for rehearing under
128
paragraph (10) shall not stay the obligation of 
the participant to make the payment specified 
in the Administrator’s notice. 
(7) 
EXEMPTIONS
FOR
INFORMATION
RE-
QUIRED.—
(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 defend-
ant participant may consent to be assigned to 
Tier II. 
(B) REVENUES.—In lieu of submitting in-
formation related to revenues as may be re-
quired for purposes of this subtitle, a non-debt-
or defendant participant may consent to be as-
signed to Subtier 1 of the defendant partici-
pant’s applicable tier. 
(8) NEW INFORMATION.—
(A) EXISTING PARTICIPANT.—The Admin-
istrator shall adopt procedures for requiring ad-
ditional 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 de-
129
fendant participant, the Administrator shall re-
quire such person to submit information nec-
essary to determine whether that person is re-
quired to make payments, and in what amount, 
under this subtitle and shall make any deter-
mination 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 re-
quest 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 ap-
propriate 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 determina-
tion 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
130
receipt of notice from the Administrator of the de-
termination. A defendant participant may not file an 
action under section 303 unless the defendant par-
ticipant requests a rehearing under this paragraph. 
(j) DEFENDANT HARDSHIP AND INEQUITY ADJUST-
MENT ACCOUNT.—
(1) IN GENERAL.—To the extent the total pay-
ments by defendant participants in any given year 
exceed the minimum aggregate annual payments 
under subsection (h) of this section, excess monies 
up to a maximum of $250,000,000 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 ac-
count 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 hard-
ship or demonstrated inequity under subsection 
(d) of this section or to reimburse any defend-
ant participant granted such relief after its pay-
ment of the amount otherwise due; and
131
(B) if the condition set forth in subsection 
(a)(2) of this section is met, for any purpose 
that the Fund may serve under this Act, unless 
the Administrator shall have published a final 
certification requiring a contingent call under 
subsection (m)(3)(D). 
(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 sub-
section (d), remaining funds in the account shall be 
carried forward for use by the Administrator for ad-
justments in subsequent years. 
(k) 
DEFENDANT
GUARANTEED
PAYMENT
AC-
COUNT.—
(1) IN GENERAL.—Subject to subsections (h) 
and (j), in the event there are excess monies paid by 
defendant participants in any given year, such mon-
ies—
(A) may be used to provide additional ad-
justments under subsection (d), up to a max-
imum aggregate of $50,000,000 in such year; 
and 
(B) to the extent not used under subpara-
graph (A), shall be placed in a defendant guar-
132
anteed 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 an-
nual 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) of this section is met, for any purpose 
that the Fund may serve under this Act, unless 
the Administrator shall have published a final 
certification requiring a contingent call under 
subsection (m)(3)(D). 
(l) GUARANTEED PAYMENT SURCHARGE.—
(1) IN GENERAL.—To the extent there are in-
sufficient monies in the defendant guaranteed pay-
ment 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 bal-
ance required to attain the minimum aggregate an-
133
nual payment net of any adjustments under sub-
section (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 sub-
section, the Administrator shall certify that he 
or she has used all reasonable efforts to collect 
mandatory payments for all defendant partici-
pants, including by using the authority in sub-
section (i)(9) of this section and section 223. 
(B) NOTICE AND COMMENT.—Before mak-
ing 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 certifi-
cation in the Federal Register after consid-
134
eration of all comments submitted under 
subparagraph (B). 
(ii) WRITTEN
NOTICE.—Not later 
than 30 days after publishing any final 
certification under clause (i), the Adminis-
trator shall provide each defendant partici-
pant with written notice of that defendant 
participant’s 
payment, 
including 
the 
amount of any surcharge. 
(m) CONTINGENT CALL
FOR MANDATORY ADDI-
TIONAL PAYMENTS.—
(1) IN
GENERAL.—Notwithstanding section 
202(a)(2) and subsection (a) of this section, the Ad-
ministrator may require additional payments to the 
Fund by defendant participants, subsequent to the 
payment by defendant participants of the maximum 
aggregate payment obligation in section 202(a)(2), 
as provided in this subsection. 
(2) CONTINGENT CALL PAYMENTS.—If the Ad-
ministrator has certified or certifies the necessity of 
additional payments as provided in paragraph (3), 
the Administrator may require the defendant partici-
pants to pay in accordance with paragraph (5) up to 
an aggregate maximum of $10,000,000,000 of addi-
tional payments subsequent to the payment by de-
135
fendant participants of the maximum aggregate pay-
ment obligation in section 202(a)(2). 
(3) CONTINGENT CALL CERTIFICATION.—
(A) IN GENERAL.—Before invoking the au-
thority to require additional mandatory pay-
ments under this subsection, the Administrator 
shall certify, after consultation with appropriate 
experts, that the entirety of the contingent call 
amount invoked is necessary to meet the 
Fund’s obligations. 
(B) INITIAL NOTICE.—Before making any 
certification under subparagraph (A), the Ad-
ministrator shall publish a notice in the Federal 
Register of the proposed certification, including 
a description and explanation of the Adminis-
trator’s analysis supporting the certification of 
the Administrator. 
(C) COMMENTS
FROM
DEFENDANT
PAR-
TICIPANTS.—Not later than 60 days after the 
publication of the notice under subparagraph 
(B), a defendant participant may provide the 
Administrator with additional information to 
support a determination that all or some of the 
additional payments from defendant partici-
136
pants set forth in the notice are or are not re-
quired. 
(D) FINAL CERTIFICATION.—
(i) IN GENERAL.—The Administrator 
shall publish a final notice in the Federal 
Register after consideration of all com-
ments submitted under subparagraph (C). 
(ii) WRITTEN NOTICE.—If the Admin-
istrator certifies the need for the contin-
gent call for additional payments, the Ad-
ministrator shall provide each defendant 
participant with written notice of that de-
fendant participant’s schedule of payments 
under this subsection. 
(4) BORROWING CAPACITY.—To the extent pro-
vided in section 221(b)(3), the Administrator may 
borrow against the mandatory additional payments 
required under this subsection at any time after 
issuing the final certification under paragraph (3). 
(5) ALLOCATION.—Any additional payments to 
the Fund by defendant participants under this sub-
section shall be allocated among them in proportion 
to the amounts provided under sections 202 and 203 
(as modified by subsections (b), (d), (f), and (g) of 
this section). If the Administrator determines that
137
the full amount of funding that would otherwise be 
generated in any year by the funding provisions of 
sections 202, 203, and 204 is not required for pur-
poses of this subsection, the Administrator shall re-
duce the amounts paid by all defendant participants 
on the same basis. 
(6) ENFORCEMENT.—The additional payments 
required under this subsection may be enforced in 
the same manner and to the same extent as the en-
forcement of payments under section 223. 
Subtitle B—Asbestos Insurers 
Commission 
SEC. 210. DEFINITION. 
In this subtitle, the term ‘‘captive insurance com-
pany’’ means a company—
(1) whose entire beneficial interest is owned on 
the date of enactment of this Act, directly or indi-
rectly, by a defendant participant or by the ultimate 
parent or the affiliated group of a defendant partici-
pant; 
(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
138
(3) that was incorporated or operating no later 
than December 31, 2002. 
SEC. 211. ESTABLISHMENT OF ASBESTOS INSURERS COM-
MISSION. 
(a) ESTABLISHMENT.—There is established the As-
bestos 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 Com-
mission 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 fam-
ily member of an employee of an insurer 
participant. No member of the Commission 
may be a former employee or shareholder
139
of any insurer participant, unless that is 
fully disclosed. 
(ii) DEFINITION.—In clause (i), the 
term ‘‘shareholder’’ shall not include a 
broadly based mutual fund that may, from 
time-to-time include 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 em-
ployee 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 Commis-
sion shall be filled in the same manner as the origi-
nal appointment. 
(5) CHAIRMAN.—The President shall select a 
Chairman from among its members. 
(c) MEETINGS.—
(1) INITIAL MEETING.—Not later than 30 days 
after the date on which all members of the Commis-
sion have been appointed, the Commission shall hold 
its first meeting.
140
(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 ma-
jority of the members of the Commission. 
SEC. 212. DUTIES OF ASBESTOS INSURERS COMMISSION. 
(a) DETERMINATION OF INSURER PAYMENT OBLIGA-
TIONS.—
(1) IN GENERAL.—
(A) DEFINITIONS.—For the purposes of 
this Act, the terms ‘‘insurer’’ and ‘‘insurer par-
ticipant’’ 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 IN-
SURER PAYMENTS.—The Commission shall de-
termine the amount that each insurer partici-
pant 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
141
methodology to determine the individual pay-
ment for each insurer participant. The method-
ology 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 para-
graph (3)(C). 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 pro-
posing an allocation methodology, the Commis-
sion 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
142
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 determina-
tions, and shall be required to fulfill its pay-
ment 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 Com-
mission’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 Adminis-
trator. Any insurer participant refusing to pro-
vide a written consent shall be subject to fines 
and penalties as provided in section 223. 
(2) AMOUNT OF PAYMENTS.—
(A) AGGREGATE PAYMENT OBLIGATION.—
The total payment required of all insurer par-
ticipants over the life of the Fund shall be 
equal to $46,025,000,000.
143
(B) ACCOUNTING STANDARDS.—In deter-
mining the payment obligations of participants 
that are not licensed or domiciled in the United 
States or that are runoff entities, the Commis-
sion 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, di-
rectly 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 cap-
tive insurance company. 
(D) SEVERAL
LIABILITY.—Unless other-
wise provided under this Act, each insurer par-
ticipant’s obligation to make payments to the 
Fund is several. Unless otherwise provided 
under this Act, there is no joint liability and the
144
future insolvency by any insurer participant 
shall not affect the payment required of any 
other insurer participant. 
(3) PAYMENT CRITERIA.—
(A) INCLUSION IN INSURER PARTICIPANT 
CATEGORY.—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 re-
sponse to claims for compensation for asbestos 
injuries arising from a policy of liability insur-
ance or contract of liability reinsurance or 
retrocessional reinsurance shall be insurer par-
ticipants in the Fund. Other insurers shall be 
exempt from mandatory payments. 
(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 sys-
tem liability of the participating insurers in 
the absence of this Act, considering and 
weighting, as appropriate (but exclusive of 
workers’ compensation), such factors as—
145
(I) historic premium for lines of 
insurance associated with asbestos ex-
posure over relevant periods of time; 
(II) recent loss experience for as-
bestos liability; 
(III) amounts reserved for asbes-
tos liability; 
(IV) the likely cost to each in-
surer participant of its future liabil-
ities under applicable insurance poli-
cies; and 
(V) any other factor the Commis-
sion may determine is relevant and 
appropriate. 
(ii) DETERMINATION OF RESERVES.—
The Commission may establish procedures 
and standards for determination of the as-
bestos reserves of insurer participants. The 
reserves of a United States licensed rein-
surer that is wholly owned by, or under 
common control of, a United States li-
censed direct insurer shall be included as 
part of the direct insurer’s reserves when 
the reinsurer’s financial results are in-
cluded as part of the direct insurer’s
146
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 ac-
counting principles. 
(C) PAYMENT SCHEDULE.—The aggregate 
annual amount of payments by insurer partici-
pants over the life of the Fund shall be as fol-
lows: 
(i) For year 1, $2,700,000,000. 
(ii) For year 2, $2,700,000,000. 
(iii) 
For 
year 
through 
5, 
$5,075,000,000 annually. 
(iv) 
For 
years 
through 
17, 
$1,625,000,000 annually. 
(v) 
For 
years 
through 
21, 
$1,350,000,000 annually. 
(vi) 
For 
years 
through 
26, 
$1,080,000,000 annually. 
(vii) For year 27, $100,000,000. 
(D) CERTAIN RUNOFF ENTITIES.—
(i) IN GENERAL.—Whenever the Com-
mission requires payments by a runoff en-
tity that has assumed asbestos-related li-
147
abilities from a Lloyds syndicate or names 
that are members of such a syndicate, the 
Commission shall not require payments 
from such syndicates and names to the ex-
tent that the runoff entity makes its re-
quired payments. In addition, such syn-
dicates 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 ex-
ceptional 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 run-
off entity handles or adjusts and, where 
appropriate, pays asbestos claims. 
(E) FINANCIAL
HARDSHIP
AND
EXCEP-
TIONAL CIRCUMSTANCE ADJUSTMENTS.—
(i) IN
GENERAL.—Under the proce-
dures established in subsection (b), an in-
surer participant may seek adjustment of 
the amount of its payments based on ex-
148
ceptional circumstances or severe financial 
hardship. 
(ii) FINANCIAL
ADJUSTMENTS.—An 
insurer participant may qualify for an ad-
justment based on severe financial hard-
ship 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 
dem-
onstrating—
(I) that the amount of its pay-
ments under the Commission’s alloca-
tion methodology is exceptionally in-
equitable when measured against the 
amount of the likely cost to the par-
ticipant of its future liability in the 
tort system in the absence of the 
Fund; 
(II) an offset credit as described 
in subsection (b)(4) (A) and (C); or
149
(III) 
other 
exceptional 
cir-
cumstances. 
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 para-
graph (2)(A) and (3)(C). 
(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 adjust-
ment by demonstrating to the Adminis-
trator that it remains justified. 
(b) PROCEDURE FOR NOTIFYING INSURER PARTICI-
PANTS OF INDIVIDUAL PAYMENT OBLIGATIONS.—
(1) NOTICE TO PARTICIPANTS.—Not later than 
30 days after promulgation of the final rule estab-
lishing an allocation methodology under subsection 
(a)(1), the Commission shall—
(A) directly notify all reasonably identifi-
able insurer participants of the requirement to 
submit information necessary to calculate the
150
amount of any required payment to the Fund 
under the allocation methodology; and 
(B) publish in the Federal Register a no-
tice requiring any person who may be an in-
surer participant (as determined by criteria out-
lined in the notice) to submit such information. 
(2) RESPONSE REQUIRED BY INDIVIDUAL IN-
SURER PARTICIPANTS.—
(A) IN
GENERAL.—Any person who re-
ceives 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 sub-
mitted under subparagraph (A) shall be signed 
by a responsible corporate officer, general part-
ner, proprietor, or individual of similar author-
ity, who shall certify under penalty of law the 
completeness and accuracy of the information 
submitted. 
(3) NOTICE TO INSURER PARTICIPANTS OF INI-
TIAL PAYMENT DETERMINATION.—
151
(A) IN GENERAL.—Within 120 days after 
receipt of the information required by para-
graph (2), the Commission shall send each in-
surer participant a notice of initial determina-
tion 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 partici-
pant’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 par-
ticipants for the applicable year. 
(B) NO
RESPONSE; 
INCOMPLETE
RE-
SPONSE.—If no response is received from an in-
surer participant, or if the response is incom-
plete, the initial determination requiring a pay-
ment from the insurer participant shall be 
based on the best information available to the 
Commission. 
(4) COMMISSION REVIEW, REVISION AND FINAL-
IZATION OF INITIAL PAYMENT DETERMINATIONS.—
(A) COMMENTS FROM INSURER PARTICI-
PANTS.—Not later than 30 days after receiving 
a notice of initial determination from the Com-
152
mission, an insurer participant may provide the 
Commission with additional information to sup-
port limited adjustments to the required pay-
ments to reflect severe financial hardship or ex-
ceptional 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, includ-
ing 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, be-
fore 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 de-
termine whether payments from that person 
should be required, in accordance with the re-
quirements of this subsection. 
(C) REVISION
PROCEDURES.—The Com-
mission shall adopt procedures for revising ini-
tial payments based on information received 
under subparagraphs (A) and (B), including a
153
provision requiring an offset credit for an in-
surer participant for the amount of any asbes-
tos-related payments it made or was legally ob-
ligated 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 sub-
mitted, or required to be submitted, to the 
Commission for purposes of determining partic-
ipant payments. 
(B) SUBPOENAS.—The Commission may 
request the Attorney General to subpoena per-
sons to compel testimony, records, and other in-
formation 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.
154
(6) ESCROW PAYMENTS.—Without regard to an 
insurer participant’s payment obligation under this 
section, any escrow or similar account established 
before the enactment of this Act by an insurer par-
ticipant 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 ALLOCA-
TION AGREEMENT.—
(1) IN GENERAL.—Not later than 30 days after 
the Commission proposes its rule establishing an al-
location methodology under subsection (a)(1), direct 
insurer participants licensed or domiciled in the 
United States, other direct insurer participants, re-
insurer participants licensed or domiciled in the 
United States, or other reinsurer participants, may
155
submit an allocation agreement, approved by all of 
the participants in the applicable group, to—
(A) the Commission; 
(B) the Committee on the Judiciary of the 
Senate; and 
(C) the Committee on the Judiciary of the 
House of Representatives. 
(2) ALLOCATION AGREEMENT.—To the extent 
the participants in any such applicable group volun-
tarily agree upon an allocation arrangement, any 
such allocation agreement shall only govern the allo-
cation of payments within that group and shall not 
determine the aggregate amount due from that 
group. 
(3) CERTIFICATION.—The Commission shall de-
termine 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 partici-
pants who are parties to the agreement. The author-
ity 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 sub-
156
section (f), the Administrator shall assume responsi-
bility, 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 Com-
mission has been completed and the Commission ter-
minated, the Commission shall submit an annual re-
port, 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 partici-
pant 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
157
make interim payments to the Fund to assure ade-
quate 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 pay-
ments not to exceed the annual aggregate amount 
specified in subsection (a)(3)(C). 
(3) ALLOCATION OF PAYMENTS.—Interim pay-
ments 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 partici-
pant’s ultimate payment obligation to the Fund es-
tablished 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 partici-
pant shall pay interest on the amount of the under-
payment at the same rate. Any participant may seek 
an exemption from or reduction in any payment re-
quired under this subsection under the financial 
hardship and exceptional circumstance standards es-
tablished in subsection (a)(3)(D).
158
(4) APPEAL
OF
INTERIM
PAYMENT
DECI-
SIONS.—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 COMMIS-
SION 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 method-
ology 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 Adminis-
trator shall have the authority, upon application by 
any insurer participant, to make adjustments to an-
nual 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 adjust-
159
ment by demonstrating that it remains justified. 
Upon the grant of any adjustment, the Adminis-
trator shall increase the payments required of all 
other insurer participants so that there is no reduc-
tion 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 aggre-
gate 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 fi-
nancial 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 partici-
pating 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
160
payment rating or Standard & Poor’s financial 
strength rating of at least A+. 
(g) JUDICIAL REVIEW.—The Commission’s rule es-
tablishing an allocation methodology, its final determina-
tions 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 promul-
gate such rules and regulations as necessary to implement 
its authority under this Act, including regulations gov-
erning an allocation methodology. Such rules and regula-
tions shall be promulgated after providing interested par-
ties 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 estab-
lishing an allocation methodology, before the Commis-
sion’s adoption of a final regulation. 
(c) INFORMATION FROM FEDERAL AGENCIES.—The 
Commission may secure directly from any Federal depart-
ment or agency such information as the Commission con-
siders necessary to carry out this Act. Upon request of 
the Chairman of the Commission, the head of such depart-
161
ment or agency shall furnish such information to the Com-
mission. 
(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 responsibil-
ities, 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 pre-
scribed for level IV of the Executive Schedule under sec-
tion 5315 of title 5, United States Code, for each day (in-
cluding travel time) during which such member is engaged 
in the performance of the duties of the Commission. 
(b) TRAVEL EXPENSES.—The members of the Com-
mission shall be allowed travel expenses, including per 
diem in lieu of subsistence, at rates authorized for employ-
ees of agencies under subchapter I of chapter 57 of title 
5, United States Code, while away from their homes or
162
regular places of business in the performance of services 
for the Commission. 
(c) STAFF.—
(1) IN GENERAL.—The Chairman of the Com-
mission 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 execu-
tive 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.
163
(e) PROCUREMENT OF TEMPORARY AND INTERMIT-
TENT 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 individ-
uals 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 COMMIS-
SION. 
The Commission shall terminate 90 days after the 
last date on which the Commission makes a final deter-
mination 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 In-
jury Claims Resolution Fund, which shall be available to 
pay—
164
(1) claims for awards for an eligible disease or 
condition determined under title I; 
(2) claims for reimbursement for medical moni-
toring determined under title I; 
(3) principal and interest on borrowings under 
subsection (b); and 
(4) administrative expenses to carry out the 
provisions of this Act. 
(b) BORROWING AUTHORITY.—
(1) IN
GENERAL.—The Administrator is au-
thorized to borrow from time-to-time amounts as set 
forth in this subsection, for purposes of enhancing li-
quidity available to the Fund for carrying out the 
obligations of the Fund under this Act. The Admin-
istrator 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 Adminis-
trator may borrow from the Federal Financing Bank 
in accordance with section 6 of the Federal Financ-
ing Bank Act of 1973 (12 U.S.C. 2285) as needed 
for performance of the Administrator’s duties under 
this Act for the first 2 years.
165
(3) BORROWING
CAPACITY.—The maximum 
amount that may be borrowed under this subsection 
at any given time is the amount that, taking into ac-
count all payment obligations related to all previous 
amounts borrowed in accordance with this sub-
section and all committed obligations of the Fund at 
the time of borrowing, can be repaid in full (with in-
terest) 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 (including any contingent call man-
datory additional payments under section 
204(m)) during the subsequent 7 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 estab-
lished under this section. 
(c) LOCKBOX FOR SEVERE ASBESTOS-RELATED IN-
JURY CLAIMANTS.—
(1) IN GENERAL.—Within the Fund, the Ad-
ministrator shall establish the following accounts: 
(A) A Mesothelioma Account, which shall 
be used solely to make payments to claimants
166
eligible for an award under the criteria of Level 
X. 
(B) A Lung Cancer Account, which shall 
be used solely to make payments to claimants 
eligible for an award under the criteria of Level 
IX. 
(C) A Severe Asbestosis Account, which 
shall be used solely to make payments to claim-
ants eligible for an award under the criteria of 
Level V. 
(D) A Moderate Asbestosis Account, which 
shall be used solely to make payments to claim-
ants eligible for an award under the criteria of 
Level IV. 
(2) ALLOCATION.—The Administrator shall al-
locate to each of the 4 accounts established under 
paragraph (1) a portion of payments made to the 
Fund adequate to compensate all anticipated claim-
ants 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 sta-
tistical studies. 
(d) AUDIT AUTHORITY.—
167
(1) 
IN
GENERAL.—For 
the 
purpose 
of 
ascertaining the correctness of any information pro-
vided or payments made to the Fund, or deter-
mining whether a person who has not made a pay-
ment to the Fund was required to do so, or deter-
mining the liability of any person for a payment to 
the Fund, or collecting any such liability, or inquir-
ing into any offense connected with the administra-
tion 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 pay-
ment 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 Admin-
istrator at a time and place named in the sum-
mons and to produce such books, papers, 
records, or other data, and to give such testi-
mony, under oath, as may be relevant or mate-
rial to such inquiry; and
168
(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 ficti-
tious statements or practices have been submitted or 
engaged in by persons submitting information to the 
Administrator or to the Asbestos Insurers Commis-
sion or any other person who provides evidence in 
support of such submissions for purposes of deter-
mining payment obligations under this Act, the Ad-
ministrator 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 ficti-
tious statement or practice under this Act. The Ad-
ministrator shall promulgate appropriate regulations 
to implement this paragraph. 
(e) NO PRIVATE RIGHT OF ACTION.—Except as pro-
vided 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 com-
pliance or noncompliance with this Act or the involvement 
of any participant in the enactment of this Act.
169
SEC. 222. MANAGEMENT OF THE FUND. 
(a) IN GENERAL.—Amounts in the Fund shall be 
held for the exclusive purpose of providing benefits to as-
bestos claimants and their beneficiaries, including those 
provided in subsection (c), and to otherwise defray the rea-
sonable 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 require-
ments of the Fund;
170
(D) general economic conditions at the 
time of the investment; 
(E) the possible effect of inflation or defla-
tion 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 (in-
cluding both income and appreciation of cap-
ital) 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 pro-
vide $1,000,000 from the Fund for each of fiscal 
years 2004 through 2008 for each of up to 10 meso-
thelioma disease research and treatment centers. 
(2) REQUIREMENTS.—The Centers shall—
(A) be chosen by the Director of the Na-
tional Institutes of Health; 
(B) be chosen through competitive peer re-
view;
171
(C) be geographically distributed through-
out the United States with special consideration 
given to areas of high incidence of mesothe-
lioma 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 Meso-
thelioma Registry; and 
(H) be coordinated in their research and 
treatment efforts with other Centers and insti-
tutions involved in exemplary mesothelioma re-
search. 
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
172
demand and 30 days 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 perfec-
tion 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 im-
posed 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;
173
(B) to subject any property of the partici-
pant, including any property in which the par-
ticipant has any right, title, or interest, to the 
payment of such liability; or 
(C) for temporary, preliminary, or perma-
nent relief. 
(2) ADDITIONAL
PENALTIES.—In any action 
under paragraph (1) in which the refusal or failure 
to pay was willful, the Administrator may seek re-
covery—
(A) of punitive damages; 
(B) of the costs of any civil action under 
this subsection, including reasonable fees in-
curred for collection, expert witnesses, and at-
torney’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 PAR-
TICIPANTS.—
(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
174
insurer participant under the procedures under this 
subsection. 
(2) SUBROGATION.—To the extent required to 
establish personal jurisdiction over nonpaying in-
surer participants, the Administrator shall be 
deemed to be subrogated to the contractual rights of 
participants to seek recovery from nonpaying insur-
ing participants that are domiciled outside the 
United States under the policies of liability insur-
ance 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 par-
ticipants under the provisions of such policies and 
contracts, provided that—
(A) any amounts collected under this sub-
section shall not increase the amount of deemed 
erosion allocated to any policy or contract under 
section 404, or otherwise reduce coverage avail-
able 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.
175
(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 le-
gally required to be paid for bodily injury re-
sulting from exposure to asbestos; 
(B) all contributions to the Fund required 
of any participant shall be deemed to be a sin-
gle 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 par-
ticipant 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 re-
quests for assistance in any such proceeding. The
176
positions taken or statements made by the Adminis-
trator 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 ad-
missible against any subrogee under this section. 
The Administrator shall have the authority to settle 
or compromise any claims against a nonpaying in-
surer participant under this subsection. 
(e) BAR ON UNITED STATES BUSINESS.—If any di-
rect insurer or reinsurer refuses to furnish any informa-
tion 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 with-
in the United States. Insurer participants or their affili-
ates 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 Adminis-
trator determines that an insurer participant that is a re-
insurer is in default in paying any required contribution
177
or otherwise not in compliance with this Act, the Adminis-
trator may issue an order barring any direct insurer par-
ticipant 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 med-
ical monitoring determined under title I.
178
(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 pay-
ment, 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 per-
179
centage points, for the period from such last date to the 
date paid. 
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. 
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 peti-
tion 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.
180
(c) STANDARD OF REVIEW.—The court shall uphold 
the decision of the Administrator unless the court deter-
mines, upon review of the record as a whole, that the deci-
sion is not supported by substantial evidence, is contrary 
to law, or is not in accordance with procedure required 
by law. 
SEC. 303. JUDICIAL REVIEW OF PARTICIPANTS’ ASSESS-
MENTS. 
(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 Insur-
ers Commission regarding the liability of any person to 
make a payment to the Fund, including a notice of appli-
cable 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 re-
view 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 com-
181
mence any action within 30 days after a decision on re-
hearing under section 204(i)(10), and any insurer partici-
pant who receives a notice of a payment obligation under 
section 212(b) shall commence any action within 30 days 
after receiving such notice. 
SEC. 304. OTHER JUDICIAL CHALLENGES. 
(a) EXCLUSIVE JURISDICTION.—The United States 
District Court for the District of Columbia shall have ex-
clusive jurisdiction over any action for declaratory or in-
junctive relieve 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 Commis-
sion 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 Co-
lumbia and the Supreme Court of the United States to 
advance on the docket and to expedite to the greatest pos-
sible extent the disposition of the action and appeal.
182
SEC. 305. STAYS, EXCLUSIVITY, AND CONSTITUTIONAL RE-
VIEW. 
(a) NO STAYS.—No court may issue a stay of pay-
ment by any party into the Fund pending its final judg-
ment. 
(b) EXCLUSIVITY OF REVIEW.—An action of the Ad-
ministrator 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, unconstitu-
tional shall be reviewable as a matter of right by di-
rect 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. 
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 fol-
lowing:
183
‘‘§ 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 arti-
fice to defraud the Office of Asbestos Disease Compensa-
tion 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 Compensa-
tion 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 docu-
ment knowing the same to contain any materially 
false, fictitious, or fraudulent statement or entry, in 
connection with the award of a claim or the deter-
mination of a participant’s payment obligation under 
title I or II of the Fairness in Asbestos Injury Reso-
184
lution 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 fol-
lowing:
‘‘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 fol-
lowing: 
‘‘(19) under subsection (a) of this section of the 
enforcement of any payment obligations under sec-
tion 204 of the Fairness in Asbestos Injury Resolu-
tion 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.—Sec-
tion 365 of title 11, United States Code, is amended by 
adding at the end the following:
185
‘‘(p) If a debtor is a participant (as that term is de-
fined in section 3 of the Fairness in Asbestos Injury Reso-
lution Act of 2005), the trustee shall be deemed to have 
assumed all executory contracts entered into by the partic-
ipant 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 ‘asbes-
tos payment obligation’ means any payment obligation 
under title II of the Fairness in Asbestos Injury Resolu-
tion Act of 2005.’’. 
(d) NO DISCHARGE.—Section 523 of title 11, United 
States Code, is amended by adding at the end the fol-
lowing:
186
‘‘(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 par-
ticipant 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 de-
fined in the Fairness in Asbestos Injury Resolu-
tion 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 pe-
riod 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
187
in Asbestos Injury Resolution Act of 2005 shall 
make payments in accordance with sections 202 and 
203 of that Act. 
‘‘(3) 
TREATMENT
OF
PAYMENT
OBLIGA-
TIONS.—All payment obligations of a debtor under 
sections 202 and 203 of the Fairness in Asbestos In-
jury Resolution Act of 2005 shall—
‘‘(A) constitute costs and expenses of ad-
ministration 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 por-
tion of the corpus of the trust to the Asbestos Injury
188
Claims Resolution Fund (referred to in this sub-
section as the ‘Fund’) as established under the Fair-
ness 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 sub-
paragraphs (B), (C), and (E), the assets in 
any trust established to provide compensa-
tion for asbestos claims (as defined in sec-
tion 3 of the Fairness in Asbestos Injury 
Resolution Act of 2005) shall be trans-
ferred 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
189
of the trust from which the assets were 
transferred. 
‘‘(ii) Notwithstanding any other provi-
sion 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 deter-
mines may create liability for the Fund in ex-
cess of the value of the asset. 
‘‘(C) ALLOCATION OF TRUST ASSETS.—If 
a trust under subparagraph (A) has bene-
ficiaries 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 con-
tinuing 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
190
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 invest-
ment requirements under section 222 of the 
Fairness in Asbestos Injury Resolution Act of 
2005 shall not be construed to require the Ad-
ministrator of the Fund to sell assets trans-
ferred 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 pay-
ment 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 determina-
tions necessary to entitle an individual claimant 
to a noncontingent cash payment from the 
trust, the trust shall (i) make any lump-sum
191
cash payment due to that claimant, and (ii) 
make or provide for all remaining noncontin-
gent 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 or-
dinary 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 com-
pleted 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.—Any injunction issued as 
part of the formation of a trust described in para-
graph (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 sub-
section or of any provision of the Fairness in Asbes-
tos Injury Resolution Act of 2005, and an interlocu-
tory order denying such relief shall not be subject to