S.Amdt. 2802

1. Replaces the bill's text with a full substitute

   Replaces the full textEverything after the enacting clause

   Removes all after the enacting clause.

   Inserted: SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

   Inserted: (a) Short Title.--This Act may be cited as the "Fairness in Asbestos Injury Resolution Act of 2006" or the "FAIR Act of 2006".

   Inserted: (b) Table of Contents.--The table of contents of this Act is as follows:

   Inserted: Sec. 1. Short title; table of contents.

   Inserted: Sec. 2. Findings and purpose.

   Inserted: Sec. 3. Definitions.

   Inserted: TITLE I--ASBESTOS CLAIMS RESOLUTION

   Inserted: Subtitle A--Asbestos Injury Claims Resolution Corporation

   Inserted: Sec. 101. Establishment of Asbestos Injury Claims Resolution Corporation.

   Inserted: Sec. 102. Advisory Committee on Asbestos Disease Compensation.

   Inserted: Sec. 103. Medical Advisory Committee.

   Inserted: Sec. 104. Claimant assistance.

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   Inserted: Sec. 105. Program startup.

   Inserted: Sec. 106. Authority of the Chief Executive Officer.

   Inserted: Sec. 107. Establishment of Corporation.

   Inserted: Sec. 108. Board of Directors; officers and employees; conflicts.

   Inserted: Sec. 109. Powers; offices; tax laws; audit; annual report.

   Inserted: Subtitle B--Asbestos Disease Compensation Procedures

   Inserted: Sec. 111. Essential elements of eligible claim.

   Inserted: Sec. 112. General rule concerning no-fault compensation.

   Inserted: Sec. 113. Filing of claims.

   Inserted: Sec. 114. Eligibility determinations and claim awards.

   Inserted: Sec. 115. Medical evidence auditing procedures.

   Inserted: Subtitle C--Medical Criteria

   Inserted: Sec. 121. Medical criteria requirements.

   Inserted: Subtitle D--Awards

   Inserted: Sec. 131. Amount.

   Inserted: Sec. 132. Reimbursable medical monitoring.

   Inserted: Sec. 133. Payment.

   Inserted: Sec. 134. Reduction in benefit payments for collateral sources.

   Inserted: Sec. 135. State lien laws.

   Inserted: TITLE II--ASBESTOS INJURY CLAIMS RESOLUTION FUND

   Inserted: Subtitle A--Asbestos Defendants Funding Allocation

   Inserted: Sec. 201. Definitions.

   Inserted: Sec. 202. Authority and tiers.

   Inserted: Sec. 203. Subtiers.

   Inserted: Sec. 204. Assessment administration.

   Inserted: Sec. 205. Stepdowns and funding holidays.

   Inserted: Sec. 206. Accounting treatment.

   Inserted: Subtitle B--Asbestos Insurers Committee

   Inserted: Sec. 210. Definition.

   Inserted: Sec. 211. Establishment of Asbestos Insurers Committee.

   Inserted: Sec. 212. Duties of Asbestos Insurers Committee.

   Inserted: Sec. 213. Powers of Asbestos Insurers Committee.

   Inserted: Sec. 214. Personnel matters.

   Inserted: Sec. 215. Termination of Asbestos Insurers Committee.

   Inserted: Sec. 216. Expenses and costs of Commission.

   Inserted: Subtitle C--Asbestos Injury Claims Resolution Fund

   Inserted: Sec. 221. Establishment of Asbestos Injury Claims Resolution Fund.

   Inserted: Sec. 222. Management of the Fund.

   Inserted: Sec. 223. Enforcement of payment obligations.

   Inserted: Sec. 224. Interest on underpayment or nonpayment.

   Inserted: Sec. 225. Education, consultation, and monitoring.

   Inserted: Sec. 226. Oversight by the Secretary of the Treasury.

   Inserted: Sec. 227. Administrative funding.

   Inserted: TITLE III--JUDICIAL REVIEW

   Inserted: Sec. 301. Judicial review of procedures.

   Inserted: Sec. 302. Judicial review of award decisions.

   Inserted: Sec. 303. Judicial review of participants' assessments.

   Inserted: Sec. 304. Other judicial challenges.

   Inserted: Sec. 305. Stays, exclusivity, and constitutional review.

   Inserted: Sec. 306. Representations to court.

   Inserted: TITLE IV--MISCELLANEOUS PROVISIONS

   Inserted: Sec. 401. False information.

   Inserted: Sec. 402. Effect on bankruptcy laws.

   Inserted: Sec. 403. Effect on other laws and existing claims.

   Inserted: Sec. 404. Effect on insurance and reinsurance contracts.

   Inserted: Sec. 405. Additional funding or return to court.

   Inserted: Sec. 406. Rules of construction relating to liability of the United States Government.

   Inserted: Sec. 407. Violations of environmental health and safety requirements.

   Inserted: Sec. 408. Nondiscrimination of health insurance.

   Inserted: Sec. 409. Corporate responsibility for annual and financial reports.

   Inserted: Sec. 410. Opt-out rights of certain trusts and effect of opt-out.

   Inserted: TITLE V--EXPEDITED CONGRESSIONAL ACTION

   Inserted: Sec. 501. Congressional action regarding modifications of the Fund.

   Inserted: Sec. 502. Congressional approval procedure.

   Inserted: SEC. 2. FINDINGS AND PURPOSE.

   Inserted: (a) Findings.--Congress finds the following:

   Inserted: (1) Millions of Americans have been exposed to forms of asbestos that can have devastating health effects.

   Inserted: (2) Various injuries can be caused by exposure to some forms of asbestos, including some forms of cancer.

   Inserted: (3) The injuries caused by asbestos can have latency periods of up to 40 years, and even limited exposure to some forms of asbestos may result in injury in some cases.

   Inserted: (4) Asbestos litigation has had a significant detrimental effect on the country's economy, driving companies into bankruptcy, diverting resources from those who are truly sick, and endangering jobs and pensions.

   Inserted: (5) The scope of the asbestos litigation crisis cuts across every State and virtually every industry.

   Inserted: (6) The United States Supreme Court has recognized that Congress must act to create a more rational asbestos claims system. In 1991, a Judicial Conference Ad Hoc Committee on Asbestos Litigation, appointed by Chief Justice William Rehnquist, found that the "ultimate solution should be legislation recognizing the national proportions of the problem . . . and creating a national asbestos dispute resolution scheme . . .". The Court found in 1997 in Amchem Products Inc. v. Windsor, 521 U.S. 591, 595 (1997), that "[t]he argument is sensibly made that a nationwide administrative claims processing regime would provide the most secure, fair, and efficient means of compensating victims of asbestos exposure." In 1999, the Court in Ortiz v. Fibreboard Corp., 527 U.S. 819, 821 (1999), found that the "elephantine mass of asbestos cases . . . defies customary judicial administration and calls for national legislation." That finding was again recognized in 2003 by the Court in Norfolk & Western Railway Co. v. Ayers, 123 S. Ct. 1210 (2003).

   Inserted: (7) This crisis, and its significant effect on the health and welfare of the people of the United States, on interstate and foreign commerce, and on the bankruptcy system, compels Congress to exercise its power to regulate interstate commerce and create this legislative solution in the form of a national asbestos injury claims resolution program to supersede all existing methods to compensate those injured by asbestos, except as specified in this Act.

   Inserted: (8) This crisis has also imposed a deleterious burden upon the United States bankruptcy courts, which have assumed a heavy burden of administering complicated and protracted bankruptcies with limited personnel.

   Inserted: (b) Purpose.--The purpose of this Act is to--

   Inserted: (1) create a privately funded administrative scheme to provide the necessary resources for a fair and efficient system to resolve asbestos injury claims that will provide compensation for legitimate present and future claimants of asbestos exposure as provided in this Act;

   Inserted: (2) provide compensation to those present and future victims based on the severity of their injuries, while establishing a system flexible enough to accommodate individuals whose conditions worsen;

   Inserted: (3) relieve the Federal and State courts of the burden of the asbestos litigation; and

   Inserted: (4) increase economic stability by resolving the asbestos litigation crisis that has bankrupted companies with asbestos liability, diverted resources from the truly sick, and endangered jobs and pensions.

   Inserted: SEC. 3. DEFINITIONS.

   Inserted: In this Act, the following definitions shall apply:

   Inserted: (1) Asbestos.--The term "asbestos" includes--

   Inserted: (A) chrysotile;

   Inserted: (B) amosite;

   Inserted: (C) crocidolite;

   Inserted: (D) tremolite asbestos;

   Inserted: (E) winchite asbestos;

   Inserted: (F) richterite asbestos;

   Inserted: (G) anthophyllite asbestos;

   Inserted: (H) actinolite asbestos;

   Inserted: (I) any of the minerals listed under subparagraphs (A) through (H) that has been chemically treated or altered, and any asbestiform variety, type, or component thereof; and

   Inserted: (J) asbestos-containing material, such as asbestos-containing products, automotive or industrial parts or components, equipment, improvements to real property, and any other material that contains asbestos in any physical or chemical form.

   Inserted: (2) Asbestos claim.--

   Inserted: (A) In general.--The term "asbestos claim" means any claim, premised on any theory, allegation, or cause of action for damages or other relief presented in a civil action or bankruptcy proceeding, directly, indirectly, or derivatively arising out of, based on, or related to, in whole or part, the health effects of exposure to asbestos, including loss of consortium, wrongful death, and any derivative claim made by, or on behalf of, any exposed person or any representative, spouse, parent, child, or other relative of any exposed person.

   Inserted: (B) Exclusion.--The term does not include claims alleging damage or injury to tangible property, or claims for benefits under a workers' compensation law or veterans' benefits program.

   Inserted: (3) Asbestos claimant.--The term "asbestos claimant" means an individual who files a claim under section 113.

   Inserted: (4) Chief executive officer.--The term "Chief Executive Officer" means the Chief Executive Officer for the Asbestos Injury Claims Resolution Corporation appointed under sections 101(b) and 109(b).

   Inserted: (5) Civil action.--The term "civil action" means all suits of a civil nature in State or Federal court, whether cognizable as cases at law or in equity or in admiralty, but does not include an action relating to any workers' compensation law, or a proceeding for benefits under any veterans' benefits program.

   Inserted: (6) Collateral source compensation.--The term "collateral source compensation" means the compensation that the claimant received, or is entitled to receive, from a defendant or an insurer of that defendant, or compensation trust as a result of a final judgment or settlement for an asbestos-related injury that is the subject of a claim filed under section 113.

   Inserted: (7) Eligible disease or condition.--The term "eligible disease or condition" means, to the extent that the illness meets the medical criteria requirements established under subtitle C of title I, asbestosis, severe asbestosis disease, disabling asbestosis disease, mesothelioma, and lung cancer.

   Inserted: (8) Fund.--The term "Fund" means the Asbestos Injury Claims Resolution Fund established under section 221.

   Inserted: (9) Insurance receivership proceeding.--The term "insurance receivership proceeding" means any State proceeding with respect to a financially impaired or insolvent insurer or reinsurer including the liquidation, rehabilitation, conservation, supervision, or ancillary receivership of an insurer under State law.

   Inserted: (10) Law.--The term "law" includes all law, judicial or administrative decisions, rules, regulations, or any other principle or action having the effect of law.

   Inserted: (11) Participant.--

   Inserted: (A) In general.--The term "participant" means any person subject to the funding requirements of title II, including--

   Inserted: (i) any defendant participant subject to liability for payments under subtitle A of that title;

   Inserted: (ii) any insurer participant subject to a payment under subtitle B of that title; and

   Inserted: (iii) any successor in interest of a participant.

   Inserted: (B) Exception.--

   Inserted: (i) In general.--A defendant participant shall not include any person protected from any asbestos claim by reason of an injunction entered in connection with a plan of reorganization under chapter 11 of title 11, United States Code, that has been confirmed by a duly entered order or judgment of a court that is no longer subject to any appeal or judicial review, and the substantial consummation, as such term is defined in section 1101(2) of title 11, United States Code, of such plan of reorganization has occurred.

   Inserted: (ii) Applicability.--Clause (i) shall not apply to a person who may be liable under subtitle A of title II based on prior asbestos expenditures related to asbestos claims that are not covered by an injunction described under clause (i).

   Inserted: (12) Person.--The term "person"--

   Inserted: (A) means an individual, trust, firm, joint stock company, partnership, association, insurance company, reinsurance company, or corporation; and

   Inserted: (B) does not include the United States, any State or local government, or subdivision thereof, including school districts and any general or special function governmental unit established under State law.

   Inserted: (13) State.--The term "State" means any State of the United States and also includes the District of Columbia, Commonwealth of Puerto Rico, the Northern Mariana Islands, the Virgin Islands, Guam, American Samoa, and any other territory or possession of the United States or any political subdivision of any of the entities under this paragraph.

   Inserted: (14) Substantially continues.--The term "substantially continues" means that the business operations have not been significantly modified by the change in ownership.

   Inserted: (15) Successor in interest.--The term "successor in interest" means any person that in 1 or a series of transactions, acquires all or substantially all of the assets and properties (including, without limitation, under section 363(b) or 1123(b)(4) of title II, United States Code), and substantially continues the business operations, of a participant. The factors to be considered in determining whether a person is a successor in interest include--

   Inserted: (A) retention of the same facilities or location;

   Inserted: (B) retention of the same employees;

   Inserted: (C) maintaining the same job under the same working conditions;

   Inserted: (D) retention of the same supervisory personnel;

   Inserted: (E) continuity of assets;

   Inserted: (F) production of the same product or offer of the same service;

   Inserted: (G) retention of the same name;

   Inserted: (H) maintenance of the same customer base;

   Inserted: (I) identity of stocks, stockholders, and directors between the asset seller and the purchaser; or

   Inserted: (J) whether the successor holds itself out as continuation of previous enterprise, but expressly does not include whether the person actually knew of the liability of the participant under this Act.

   Inserted: (16) Veterans' benefits program.--The term "veterans' benefits program" means any program for benefits in connection with military service administered by the Veterans' Administration under title 38, United States Code.

   Inserted: (17) Workers' compensation law.--The term "workers' compensation law"--

   Inserted: (A) means a law respecting a program administered by a State or the United States to provide benefits, funded by a responsible employer or its insurance carrier, for occupational diseases or injuries or for disability or death caused by occupational diseases or injuries;

   Inserted: (B) includes the Longshore and Harbor Workers' Compensation Act (33 U.S.C. 901 et seq.) and chapter 81 of title 5, United States Code; and

   Inserted: (C) does not include the Act of April 22, 1908 (45 U.S.C. 51 et seq.), commonly known as the Employers' Liability Act, or damages recovered by any employee in a liability action against an employer.

   Inserted: TITLE I--ASBESTOS CLAIMS RESOLUTION

   Inserted: Subtitle A--Asbestos Injury Claims Resolution Corporation SEC. 101. ESTABLISHMENT OF ASBESTOS INJURY CLAIMS RESOLUTION CORPORATION.

   Inserted: (a) In General.--

   Inserted: (1) Establishment.--There is established an Asbestos Injury Claims Resolution Corporation (referred to in this Act as the "Corporation") to undertake a program on compensation for injuries suffered by exposure to asbestos. The Corporation shall undertake the performance of the duties in this Act.

   Inserted: (2) Purpose.--The purpose of the Corporation is to provide timely, fair compensation, in the amounts and under the terms specified in this Act, on a no-fault basis and in a non-adversarial manner, to individuals whose health has been adversely affected by exposure to asbestos. Compensation amounts provided by the Corporation shall be subject to the availability of funds in the Asbestos Injury Claims Resolution Fund.

   Inserted: (3) Expenses.--There shall be available from the Asbestos Injury Claims Resolution Fund to the Chief Executive Officer sums reasonably necessary for the administrative and legal expenses of the Corporation, not to exceed $100,000,000 for the first 6 years, $50,000,000 for the following 10 years, and $25,000,000 thereafter.

   Inserted: (b) Appointment of the Chief Executive Officer.--

   Inserted: (1) In general.--The Chief Executive Officer shall be appointed by the Board of Directors of the Asbestos Injury Claims Resolution Corporation, to serve for a term of 5 years.

   Inserted: (2) Removal.--The Chief Executive Officer may be removed at any time by the Board of Directors for any reason the Board determines sufficient.

   Inserted: (c) Duties of Chief Executive Officer.--

   Inserted: (1) In general.--The Chief Executive Officer shall be responsible for--

   Inserted: (A) processing claims for compensation for asbestos-related injuries and paying compensation to eligible claimants under the criteria and procedures established under title I;

   Inserted: (B) determining, levying, and collecting assessments on participants under title II;

   Inserted: (C) appointing or contracting for the services of such personnel, making such expenditures, and taking any other actions as may be necessary and appropriate to carry out the responsibilities of the Corporation, including entering into cooperative agreements with other Federal agencies or State agencies and entering into contracts with non-governmental entities;

   Inserted: (D) conducting such audits and additional oversight as necessary to assure the integrity of the program;

   Inserted: (E) managing the Asbestos Injury Claims Resolution Fund established under section 221, including--

   Inserted: (i) administering, in a fiduciary capacity, the assets of the Fund for the exclusive purpose of providing benefits to asbestos claimants and their beneficiaries;

   Inserted: (ii) defraying the reasonable expenses of administering the Fund;

   Inserted: (iii) investing the assets of the Fund in accordance with section 222(b);

   Inserted: (iv) retaining advisers, managers, and custodians who possess the necessary facilities and expertise to provide for the skilled and prudent management of the Fund, to assist in the development, implementation and maintenance of the Fund's investment policies and investment activities, and to provide for the safekeeping and delivery of the Fund's assets; and

   Inserted: (v) borrowing amounts authorized by section 221(b) on appropriate terms and conditions, including pledging the assets of or payments to the Fund as collateral;

   Inserted: (F) adopting such written procedures as may be necessary and appropriate to implement the provisions of this Act.

   Inserted: (G) making such expenditures as may be necessary and appropriate in the administration of this Act;

   Inserted: (H) excluding evidence and disqualifying or debarring any attorney, physician, provider of medical or diagnostic services, including laboratories and others who provide evidence in support of a claimant's application for compensation where the Chief Executive Officer determines that materially false, fraudulent, or fictitious statements or practices have been submitted or engaged in by such individuals or entities; and

   Inserted: (I) having all other powers incidental, necessary, or appropriate to carrying out the functions of the Corporation.

   Inserted: (2) Certain enforcements.--For each infraction relating to paragraph (1)(H), the Chief Executive Officer also refers such matters to the Attorney General who may impose a civil penalty not to exceed $10,000 on any person or entity found to have submitted or engaged in a materially false, fraudulent, or fictitious statement or practice under this Act. The Attorney General shall prescribe appropriate regulations to implement paragraph (1)(H).

   Inserted: (3) Selection of deputy chief executive officers.--The Chief Executive Officer shall select a Deputy Chief Executive Officer for Claims Administration to carry out the Chief Executive Officer's responsibilities under this title and a Deputy Chief Executive Officer for Fund Management to carry out the Chief Executive Officer's responsibilities under title II of this Act. The Deputy Chief Executive Officers shall report directly to the Chief Executive Officer.

   Inserted: (d) Expeditious Determinations.--The Chief Executive Officer shall prescribe rules to expedite claims for asbestos claimants with exigent circumstances.

   Inserted: (e) Audit and Personnel Review Procedures.--The Chief Executive Officer shall establish audit and personnel review procedures for evaluating the accuracy of eligibility recommendations of agency and contract personnel.

   Inserted: (f) Privacy of Records.--

   Inserted: (1) In general.--The Corporation shall adopt written procedures that are at least as protective of the privacy of records under section 522a of title 5, United States Code (commonly referred to as the Privacy Act of 1974), that shall govern the availability of records to claimants, participants, and the public of the Corporation, including the Asbestos Insurers Committee within 180 days after the date of enactment of this Act.

   Inserted: (g) Publication of Written Procedures.--The Chief Executive Officer shall publish in a newspaper with a circulation of at least 500,000 and on the Internet any written procedures or rules promulgated or adopted under this Act.

   Inserted: SEC. 102. ADVISORY COMMITTEE ON ASBESTOS DISEASE COMPENSATION.

   Inserted: (a) Establishment.--

   Inserted: (1) In general.--Not later than 120 days after the date of enactment of this Act, the Chief Executive Officer shall establish an Advisory Committee on Asbestos Disease Compensation (hereinafter the "Advisory Committee").

   Inserted: (2) Composition and appointment.--The Advisory Committee shall be composed of 24 members, appointed as follows:

   Inserted: (A) The Majority and Minority Leaders of the Senate, the Speaker of the House, and the Minority Leader of the House shall each appoint 2 members. Of the 2--

   Inserted: (i) 1 shall be selected to represent the interests of claimants; and

   Inserted: (ii) 1 shall be selected to represent the interests of participants.

   Inserted: (B) The Chief Executive Officer shall appoint 16 members, who shall be individuals with qualifications and expertise in occupational or pulmonary medicine, occupational health, workers' compensation programs, financial administration, investment of funds, program auditing, or other relevant fields.

   Inserted: (3) Qualifications.--All of the members described in paragraph (2) shall have expertise or experience relevant to the asbestos compensation program, including experience or expertise in diagnosing asbestos-related diseases and conditions, assessing asbestos exposure and health risks, filing asbestos claims, administering a compensation or insurance program, or as actuaries, auditors, or investment managers. None of the members described in paragraph (2)(B) shall be individuals who, for each of the 5 years before their appointments, earned more than 15 percent of their income by serving in matters related to asbestos litigation as consultants or expert witnesses.

   Inserted: (b) Duties.--The Advisory Committee shall advise the Chief Executive Officer on--

   Inserted: (1) claims filing and claims processing procedures;

   Inserted: (2) claimant assistance programs;

   Inserted: (3) audit procedures and programs to ensure the quality and integrity of the compensation program;

   Inserted: (4) the development of a list of industries, occupations and time periods for which there is a presumption of substantial occupational exposure to asbestos;

   Inserted: (5) recommended analyses or research that should be conducted to evaluate past claims and to project future claims under the program;

   Inserted: (6) the annual report required to be submitted to Congress under section 405; and

   Inserted: (7) such other matters related to the implementation of this Act as the Chief Executive Officer considers appropriate.

   Inserted: (c) Operation of the Committee.--

   Inserted: (1) Each member of the Advisory Committee shall be appointed for a term of 3 years, except that, of the members first appointed--

   Inserted: (A) 8 shall be appointed for a term of 1 year;

   Inserted: (B) 8 shall be appointed for a term of 2 years; and

   Inserted: (C) 8 shall be appointed for a term of 3 years, as determined by the Chief Executive Officer at the time of appointment.

   Inserted: (2) Any member appointed to fill a vacancy occurring before the expiration of the term shall be appointed only for the remainder of such term.

   Inserted: (3) The Chief Executive Officer shall designate a Chairperson and Vice Chairperson from among members of the Advisory Committee appointed under subsection (a)(2)(B).

   Inserted: (4) The Advisory Committee shall meet at the call of the Chairperson or the majority of its members, and at a minimum shall meet at least 4 times per year during the first 5 years of the asbestos compensation program, and at least 2 times each year thereafter.

   Inserted: (5) The Chief Executive Officer shall provide to the Committee such information as is necessary and appropriate for the Committee to carry out its responsibilities under this section. The Chief Executive Officer may, upon request of the Advisory Committee, secure directly from any Federal, State, or local department or agency such information as may be necessary and appropriate to enable the Advisory Committee to carry out its duties under this section.

   Inserted: (6) The Chief Executive Officer shall provide the Advisory Committee with such administrative support as is reasonably necessary to enable it to perform its functions.

   Inserted: (d) Expenses.--Members of the Advisory Committee, other than full-time employees of the United States, while attending meetings of the Advisory Committee or while otherwise serving at the request of the Chief Executive Officer, and while serving away from their homes or regular places of business, shall be allowed travel and meal expenses, including per diem in lieu of subsistence, as authorized by section 5703 of title 5, United States Code, for individuals in the Government serving without pay.

   Inserted: SEC. 103. MEDICAL ADVISORY COMMITTEE.

   Inserted: (a) In General.--The Chief Executive Officer shall establish a Medical Advisory Committee to provide expert advice regarding medical issues arising under the statute.

   Inserted: (b) Qualifications.--None of the members of the Medical Advisory Committee shall be individuals who, for each of the 5 years before their appointments, earned more than 15 percent of their income by serving in matters related to asbestos litigation as consultants or expert witnesses.

   Inserted: SEC. 104. CLAIMANT ASSISTANCE.

   Inserted: (a) Establishment.--Not later than 180 days after the enactment of this Act, the Chief Executive Officer shall establish a comprehensive asbestos claimant assistance program to--

   Inserted: (1) publicize and provide information to potential claimants about the availability of benefits for eligible claimants under this Act, and the procedures for filing claims and for obtaining assistance in filing claims;

   Inserted: (2) provide assistance to potential claimants in preparing and submitting claims, including assistance in obtaining the documentation necessary to support a claim;

   Inserted: (3) respond to inquiries from claimants and potential claimants;

   Inserted: (4) provide training with respect to the applicable procedures for the preparation and filing of claims to persons who provide assistance or representation to claimants; and

   Inserted: (5) provide for the establishment of a website where claimants may access all relevant forms and information.

   Inserted: (b) Contracts.--The claimant assistance program may be carried out in part through contracts with labor organizations, community-based organizations, and other entities which represent or provide services to potential claimants, except that such organizations may not have a financial interest in the outcome of claims filed with the Office.

   Inserted: (c) Legal Assistance.--

   Inserted: (1) In general.--As part of the program established under subsection (a), the Chief Executive Officer shall establish a legal assistance program to provide assistance to asbestos claimants concerning legal representation issues.

   Inserted: (2) List of qualified attorneys.--As part of the program, the Chief Executive Officer shall maintain a roster of qualified attorneys who have agreed to provide pro bono services to asbestos claimants under rules established by the Chief Executive Officer. The claimants shall not be required to use the attorneys listed on such roster.

   Inserted: (3) Notice.--

   Inserted: (A) In general.--The Chief Executive Officer shall provide asbestos claimants with notice of, and information relating to--

   Inserted: (i) pro bono services for legal assistance available to those claimants; and

   Inserted: (ii) any limitations on attorneys fees for claims filed under this title.

   Inserted: (B) Notice by attorneys.--Before a person becomes a client of an attorney with respect to an asbestos claim, that attorney shall provide notice to that person of pro bono services for legal assistance available for that claim.

   Inserted: (d) Attorney's Fees.--

   Inserted: (1) In general.--Notwithstanding any contract, the representative of an individual may not receive, for services rendered in connection with an asbestos claim or the claim of an individual under this Act, more than 5 percent of a final award made (whether by the Chief Executive Officer initially or as a result of administrative or appellate review) under this Act on such claim.

   Inserted: (2) Exception.--The Chief Executive Officer may by rule adopt a lower percentage limitation for particular classes of cases if the Chief Executive Officer finds that--

   Inserted: (A) the percentage limitation otherwise applicable under this paragraph would result in unreasonably high compensation to claimants' representatives in such cases; and

   Inserted: (B) such limitation would not unduly limit the availability of representatives to claimants.

   Inserted: (3) Reasonable fee for work actually and reasonably performed.--In addition to the provisions specified in paragraphs (1) and (2), a representative of an individual may not receive a fee unless--

   Inserted: (A) the representative submits to the Chief Executive Officer appropriately detailed billing documentation for the work actually and reasonably performed in the course of representation of the claimant; and

   Inserted: (B) the Chief Executive Officer finds that the fee to be awarded is for work actually and reasonably performed on behalf of the claimant and does not exceed 200 percent of a reasonable hourly fee for such work.

   Inserted: (4) Penalty.--Any representative of an asbestos claimant who violates this subsection shall be fined not more than the greater of--

   Inserted: (A) $5,000; or

   Inserted: (B) twice the amount received by the representative for services rendered in connection with each such violation.

   Inserted: SEC. 105. PROGRAM STARTUP.

   Inserted: (a) Interim Written Procedures.--Not later than 90 days after the date of enactment of this Act, the Chief Executive Officer shall adopt interim written procedures for the processing of claims under this title and the operation of the Fund under title II, including procedures for the expediting of exigent claims.

   Inserted: (b) Exigent Health Claims.--

   Inserted: (1) In general.--The Chief Executive Officer shall develop procedures to provide for an expedited process to categorize, evaluate, and pay exigent health claims. Such procedures shall include, pending adoption of final written procedures, adoption of interim written procedures as needed for the processing of exigent claims.

   Inserted: (2) Eligible exigent health claims.--A claim shall qualify for treatment as an exigent health claim if the claimant is living and the claimant provides--

   Inserted: (A) documentation that a physician has diagnosed the claimant as having mesothelioma; or

   Inserted: (B) a declaration or affidavit, from a physician who has examined the claimant within 120 days before the date of such declaration or affidavit, that the physician has diagnosed the claimant as being terminally ill from an asbestos-related illness and having a life expectancy of less than 1 year.

   Inserted: (3) Special expedited procedures for pending malignant mesothelioma asbestos claims.--

   Inserted: (A) In general.--An individual who has an asbestos claim pending in any Federal or State court on the enactment date of this Act and who has documentation from a board certified pathologist that the pathologist has diagnosed the claimant with malignant mesothelioma may file a claim for compensation under the special expedited provisions of subparagraph (B).

   Inserted: (B) Expedited claims.--An exigent claim filed under subparagraph (A) shall be processed for expedited decision if the individual--

   Inserted: (i) provides the documentation required by subparagraph (A);

   Inserted: (ii) attests that he has not received an award from any source for malignant mesothelioma or, if he has, the specifics of that award; and

   Inserted: (iii) attests that he had an asbestos claim for malignant mesothelioma pending in a Federal or State court on the date of enactment of this Act and provides documentation of that pending asbestos claim, including any response to that claim by a defendant and any court orders.

   Inserted: (C) Decision.--Within 90 days after the receipt of the information required by subparagraphs (A) and (B), the Chief Executive Officer shall determine if that information is sufficient to meet the medical criteria of section 121(d)(10), "Malignant Level 10", and shall issue a decision to the claimant. If the information is insufficient, the Chief Executive Officer shall state the reasons with particularity and offer assistance to the claimant of the type provided under section 104, "Claimant Assistance", to cure the insufficiency in an expeditious manner.

   Inserted: (D) Availability of procedure.--The expedited procedures of this paragraph shall be available for malignant mesothelioma claims filed within 1 year of the date of enactment of this Act.

   Inserted: (4) Additional exigent health claims.--The Chief Executive Officer may, in final written procedures issued under section 101(c), designate additional categories of claims that qualify as exigent health claims under this subsection.

   Inserted: (c) Extreme Financial Hardship Claims.--The Chief Executive Officer shall, in final written procedures issued under section 101(c), designate categories of claims to be handled on an expedited basis as a result of extreme financial hardship.

   Inserted: (d) Interim Chief Executive Officer.--Until a Chief Executive Officer is appointed by the Board of Directors, the President shall appoint an Interim Chief Executive Officer who shall have all the authority conferred by this Act on the Chief Executive Officer and who shall be deemed to be the Chief Executive Officer for the purposes of this Act. Before final written procedures are promulgated relating to claims processing, the Interim Chief Executive Officer may prioritize claims processing, without regard to the time requirements under subtitle B, based on severity of illness and likelihood that the illness in question was exposed by exposure to asbestos.

   Inserted: (e)Transfer of Jurisdiction of Claims.--

   Inserted: (1) In general.--

   Inserted: (A) Transfer of jurisdiction.--Notwithstanding any other provision of this Act, exclusive jurisdiction for the resolution of any asbestos claim pending as of the date of enactment of this Act or of any subsequently filed asbestos claim, shall be transferred to the Asbestos Claims Resolution Corporation, other than a claim for which a verdict or final order or judgment has been entered by a court before the date of enactment of this Act. The procedures under section 113 shall be followed in order to effectuate the transfer.

   Inserted: (B) Pending court proceedings.--In order to effectuate the transfer of jurisdiction, any Federal or State court with a pending or subsequently filed asbestos claim is required to enter a judgment of dismissal on any such action, including an action pending on appeal, or on petition or motion for discretionary review, on or after the date of enactment of this Act. A court may dismiss such action on its own motion.

   Inserted: (2) Pursual of mesothelioma claims in federal court.--

   Inserted: (A) In general.--Notwithstanding any other provision of this Act, if, not later than 1 year after the date of enactment of this Act, the Chief Executive Officer cannot certify to Congress that the Fund is operational and procedures are in place to review and pay mesothelioma claims at a reasonable rate, each person that has filed a mesothelioma claim stayed under paragraph (1)(A), or with such a claim arising after the date of enactment of this Act, may pursue that claim under the conditions described in paragraph (3) in a Federal district court located within--

   Inserted: (i) the State of residence of the claimant; or

   Inserted: (ii) the State in which the asbestos exposure occurred.

   Inserted: (B) Defendants not found.--If any defendant cannot be found in the State described in clause (i) or (ii) of subparagraph (A), the claim may be pursued only against that defendant in the Federal district court located within any State in which the defendant may be found.

   Inserted: (C) Determination of most appropriate forum.--If a person alleges that the asbestos exposure occurred in more than 1 Federal district the trial court shall determine which Federal district is the most appropriate forum for the claim. If the court determines that another forum would be the most appropriate forum for a claim, the court shall dismiss the claim. Any otherwise applicable statute of limitations shall be tolled beginning on the date the claim was filed and ending on the date the claim is dismissed under this subparagraph.

   Inserted: (D) Credit of claim and effect of operational fund.--If an asbestos claim is pursued in Federal court in accordance with this paragraph, any recovery by the claimant shall be a collateral source compensation for purposes of section 134. If the Chief Executive Officer subsequently certifies to Congress that the Fund has become operational and the procedures are in place to review and pay asbestos claims at a reasonable rate, any claim in a civil action in Federal court that is not actually on trial before a jury which has been impaneled and presentation of evidence has commenced, but before its deliberation, or before a judge and is at the presentation of evidence, shall be deemed a reinstated claim against the Fund and the civil action before the Federal or State court shall be null and void. If the Chief Executive Officer tenders an award to a claimant, any claim in a civil action in Federal court that has not yet resulted in a final judgment and award for the plaintiff shall be deemed a reinstated claim and the civil action before the Federal court shall be null and void.

   Inserted: (3) Limits on cases.--In any action permitted under paragraph (2), the following restrictions shall apply:

   Inserted: (A) Award values.--Relief awarded in an action permitted under paragraph (2) shall not exceed the amount of compensation authorized to be awarded under this Fund to a claimant under Malignant Level VII.

   Inserted: (B) Attorneys' fees.--

   Inserted: (i) In general.--Notwithstanding any contract, the representative of an individual may not receive, for services rendered in connection with an action permitted under paragraph (2), more than 20 percent of a final award made as a result of such action.

   Inserted: (ii) Reasonable fee for work actually performed.--In addition to the limitation specified in clause (i), a representative of an individual may not receive a fee unless--

   Inserted: (I) the representative submits to the Chief Executive Officer appropriately detailed billing documentation for the work actually and reasonably performed in the course of representation of the claimant; and

   Inserted: (II) the Chief Executive Officer finds that the fee to be awarded is for work actually and reasonably performed on behalf of the claimant and does not exceed 200 percent of a reasonable hourly fee for such work.

   Inserted: (C) Penalty.--Any representative of an asbestos claimant who violates this paragraph shall be fined not more than the greater of--

   Inserted: (i) $5,000; or

   Inserted: (ii) twice the amount received by the representative for services rendered in connection with each such violation.

   Inserted: (4) Offset.--

   Inserted: (A) Definition.--In this paragraph, the term "asbestos expenditure" has the same meaning given the term "prior asbestos expenditure" in paragraph (7) of section 201, but without regard to the limit on the date of payment expressed in that paragraph.

   Inserted: (B) Offset on obligation.--Asbestos expenditures incurred by a participant as a result of this subsection shall be offset from the participant's obligations to the Fund and from defendant or insurance participants' total obligations to the Fund.

   Inserted: SEC. 106. AUTHORITY OF THE CHIEF EXECUTIVE OFFICER.

   Inserted: The Chief Executive Officer on any matter within the jurisdiction of the Chief Executive Officer under this Act may subpoena persons to compel testimony, records, and other information relevant to the responsibilities of the Chief Executive Officer under this section. The subpoena may be enforced 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.

   Inserted: SEC. 107. ESTABLISHMENT OF CORPORATION.

   Inserted: (a) Federal Charter.--There is established a corporation to be known as the Asbestos Injury Claims Resolution Corporation ("Corporation").

   Inserted: (b) Nature of Corporation.--The Corporation is a nonprofit corporation and shall have no capital stock. The Corporation is not an agency or establishment of the United States Government.

   Inserted: (c) Termination of Corporation.--The Corporation shall dissolve 40 years after the date of enactment of this Act, unless dissolved sooner by the Board. All remaining funds held by the Corporation shall be distributed to the defendant participants and insurer participants in proportion to the percentage of assessments paid into the Corporation.

   Inserted: SEC. 108. BOARD OF DIRECTORS; OFFICERS AND EMPLOYEES; CONFLICTS.

   Inserted: (a) Board of Directors.--There shall be in the Corporation a Board of Directors. The Board shall appoint the Chief Executive Officer and formulate the policies of the Corporation.

   Inserted: (b) Appointment.--The Corporation shall have a Board of Directors ("Board"), consisting of 7 members. The Board shall be appointed as follows:

   Inserted: (1) Designated members.--The Secretary of the Treasury, the Attorney General, and the Secretary of Labor shall serve as members of the Board.

   Inserted: (2) Appointed members.--The remaining 4 members of the Board shall be appointed by the President. The members of the Board shall not, by reason of such membership, be deemed to be officers or employees of the United States.

   Inserted: (3) Ineligibility.--None of the Directors shall be individuals who, for each of the 5 years before their appointments, earned more than 15 percent of their income by serving in matters related to asbestos litigation as consultants or expert witnesses.

   Inserted: (c) Operation of the Board.--

   Inserted: (1) Chair.--The Board shall be chaired by a member elected by the Board, but the Chairperson may not be a full-time Federal employee.

   Inserted: (2) Meetings.--Meetings of the Board may be convened by the Chairperson upon reasonable notice, but the Board shall meet at least once per year.

   Inserted: (3) Quorum.--A quorum shall consist of all of the Directors or their representatives.

   Inserted: (4) Compensation.--The compensation of each member of the Board shall be paid by the Corporation as current expenses. Each member other than members serving by virtue of their Federal office shall be compensated at the daily equivalent of the highest rate payable under section 5332 of title 1, for each day (including travel time) during which the member is engaged in the actual performance of duties as a member of the Board. Members of the Board shall be reimbursed by the Corporation for actual, reasonable, and necessary expenses (including traveling and subsistence expenses) incurred by them in the performance of the duties vested in the Board by this Act.

   Inserted: (e) Officers and Employees.--

   Inserted: (1) Status.--Officers and employees of the Corporation are not employees of the Federal Government as a result of their service with the Corporation.

   Inserted: (2) Chief executive officer.--There shall be in the Corporation a Chief Executive Officer who shall be responsible for carrying out the functions of the Corporation as described in section 101(c) and in accordance with policies established by the Board. The Chief Executive Officer shall be appointed by the Board of Directors under section 101(b) and on such additional terms as the Board may determine and may be removed by the Board of Directors in accordance with section 101(b)(2). The Chief Executive Officer shall receive compensation at the rate provided by law for the Vice President of the United States.

   Inserted: (3) Appointment.--The Chief Executive Officer shall appoint, remove, and fix compensation for all subordinate officers and employees of the Corporation as determined necessary.

   Inserted: (4) Compensation.--No officer or employee of the Corporation, other than the Chief Executive Officer, may be compensated by the Corporation at an annual rate of pay which exceeds the rate of basic pay in effect for level I of the Executive Schedule under section 5312 of title 5, United States Code.

   Inserted: (f) Conflicts of Interest.--No part of the Corporation's revenue, income, or property shall inure to the benefit of its directors, officers, and employees, and such revenue, earnings, or other income, or property shall be used for the carrying out of the corporate purposes set forth in this Act. No director, officer, or employee of the corporation shall in any manner directly or indirectly participate in the deliberation upon or the determination of any question affecting his or her personal interests or the interests of any corporation, partnership, or organization in which he or she is directly or indirectly interested.

   Inserted: (g) Regulations.--

   Inserted: (1) Authority.--The Attorney General, after consultation with the Secretaries of the Treasury and of Labor, shall issue regulations imposing on the Chief Executive Officer, the Deputy Chief Executive Officers, and the Board a fiduciary duty to manage the affairs of the Corporation with prudence in order to provide timely compensation to eligible claimants, giving appropriate priority to those most ill, while also preserving the funds available to the Corporation in order to compensate all eligible claimants.

   Inserted: (2) Sunset.--Effective 2 years after the enactment of this Act, all authority to issue and revise regulations under this section shall terminate.

   Inserted: (h) Personal Liability.--The Chief Executive Officer, Deputy Chief Executive Officers, and members of the Board shall be exempt from civil liability for any act or omission committed within the scope of their employment with the Corporation, except for acts that constitute gross negligence or intentional wrongdoing.

   Inserted: (i) Corporate Compliance Officer.--

   Inserted: (1) In general.--The Board of Directors shall establish within the Corporation a Corporate Compliance Office headed by a Chief Compliance Officer selected by the President on the basis of integrity and demonstrated ability in accounting, auditing, financial analysis, law, management analysis, public administration, or investigations.

   Inserted: (2) Independence.--Neither the Board nor the Chief Executive Officer shall prevent or prohibit the Chief Compliance Officer from initiating, carrying out, or completing any audit or investigation during the course of any audit or investigation.

   Inserted: (3) Staff.--The Board shall authorize the Chief Compliance Officer to obtain sufficient staff and other resources to carry out the function of the position.

   Inserted: (4) Duties.--It shall be the duty and responsibility of the Chief Compliance Officer to--

   Inserted: (A) provide policy direction for, and to conduct, supervise, and coordinate audits and investigations relating to the programs and operations of the Corporation;

   Inserted: (B) recommend policies for, and to conduct, supervise, or coordinate other activities carried out or financed by the Corporation for the purpose of promoting economy and efficiency in the administration of, or preventing and detecting fraud and abuse in, its programs and operations;

   Inserted: (C) recommend policies for promotion of economy and efficiency in the administration of, or the prevention and detection of fraud and abuse in, programs and operations administered or financed by the Corporation, or the identification and prosecution of participants in such fraud or abuse;

   Inserted: (D) keep the Chief Executive Officer, the Board, and Congress fully and currently informed concerning fraud and other serious problems, abuses, and deficiencies relating to the administration of programs and operations administered or financed by the Corporation; and

   Inserted: (E) recommend corrective action concerning such problems, abuses, and deficiencies, and report on the progress made in implementing such corrective action.

   Inserted: (5) Criminal violations.--In carrying out the duties and responsibilities established under this section, the Chief Compliance Officer shall file a criminal complaint with the Attorney General whenever the Chief Compliance Officer has reasonable grounds to believe there has been a violation of Federal criminal law.

   Inserted: SEC. 109. POWERS; OFFICES; TAX LAWS; AUDIT; ANNUAL REPORT.

   Inserted: (a) Powers.--In furtherance of the purposes of the Corporation, the Corporation may--

   Inserted: (1) adopt bylaws consistent with law;

   Inserted: (2) adopt, alter, use, and destroy a corporate seal;

   Inserted: (3) sue and be sued, complain and defend, in its corporate name and through its own counsel, in courts of competent jurisdiction;

   Inserted: (4) enter into contracts and modify, or consent to the modification of, any contract or agreement to which the Corporation is a party or in which the Corporation has an interest;

   Inserted: (5) make advance, progress, or other payments;

   Inserted: (6) own and dispose of property;

   Inserted: (7) issue written policies and statements; and

   Inserted: (8) exercise any and all powers established under this Act and such incidental powers as are necessary to carry out its powers, duties, and functions under section 101 and other provisions of this Act.

   Inserted: (b) Principal and Branch Offices.--The Corporation shall maintain its principal office in the metropolitan Washington, DC, area. The Corporation may establish offices in any place or places in which the Corporation may carry on all or any of its operations and business.

   Inserted: (c) Tax Laws.--The Corporation, including its franchise and income, shall be exempt from the tax laws and from taxation now or hereafter imposed by the United States, or any territory or possession thereof, or by any State, county, municipality, or local taxing authority.

   Inserted: (d) Audit.--The programs, activities, receipts, expenditures, and financial transactions of the Corporation shall be subject to audit by an independent certified public accounting firm under generally accepted accounting principles that would apply to a private not-for-profit corporation. The auditing firm shall have access to such books, accounts, financial records, reports, files, and such other papers, things, or property belonging to or in use by the corporation and necessary to facilitate the audit, and they shall be afforded full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and custodians. A report on each such audit shall be made by the auditing firm to the Board of Directors, to the Secretary of the Treasury, and to Congress.

   Inserted: (e) Annual Report.--Within 6 months after the close of each fiscal year, the Corporation shall submit to the President and to the Committees on the Judiciary of the Senate and the House of Representatives the report on the activities of the Corporation during the prior fiscal year required under section 405 of this Act.

   Inserted: (f) Annual Report Certification.--Before submission of the annual report required under section 405 of this Act, the Chief Executive Officer and the Deputy Chief Executive Officers, in regard to their particular areas of responsibility, shall certify that--

   Inserted: (1) the signing officer has reviewed the report;

   Inserted: (2) based on the officer's knowledge, the report does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which such statements were made, not misleading;

   Inserted: (3) based on such officer's knowledge, the financial statements, and other financial information included in the report, fairly present in all material respects the financial condition and results of operations of the Corporation as of, and for, the periods presented in the report;

   Inserted: (4) the signing officers--

   Inserted: (A) are responsible for establishing and maintaining internal controls;

   Inserted: (B) have designed such internal controls to ensure that material information relating to the Corporation is made known to such officers by others within the Corporation, particularly during the period in which the periodic reports are being prepared;

   Inserted: (C) have evaluated the effectiveness of the Corporation's internal controls as of a date within 90 days before the report; and

   Inserted: (D) have presented in the report their conclusions about the effectiveness of their internal controls based on their evaluation as of that date;

   Inserted: (5) the signing officers have disclosed to the Comptroller General and to the independent auditing firm--

   Inserted: (A) all significant deficiencies in the design or operation of internal controls which could adversely affect the Corporation's ability to record, process, summarize, and report financial data and have identified any material weaknesses in internal controls; and

   Inserted: (B) any fraud, whether or not material, that involves management or other employees who have a significant role in the Corporation's internal controls; and

   Inserted: (6) the signing officers have indicated in the report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

   Inserted: Subtitle B--Asbestos Disease Compensation Procedures SEC. 111. ESSENTIAL ELEMENTS OF ELIGIBLE CLAIM.

   Inserted: To be eligible for an award under this Act for an asbestos-related disease or injury, an individual shall--

   Inserted: (1) file a claim in a timely manner in accordance with section 113; and

   Inserted: (2) prove, by a preponderance of the evidence, that the claimant suffers from an eligible disease or condition, as demonstrated by evidence that meets the requirements established under subtitle C.

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

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

   Inserted: SEC. 113. FILING OF CLAIMS.

   Inserted: (a) Who May Submit.--

   Inserted: (1) In general.--Any individual who has suffered from a disease or condition that is believed to meet the requirements established under subtitle C (or the personal representative of the estate of that individual, if the individual is deceased or incompetent) may file a claim with the Corporation for an award with respect to such injury.

   Inserted: (2) Definition.--In this Act, the term "personal representative" shall have the same meaning as that term is defined in section 104.4 of title 28 of the Code of Federal Regulations, as in effect on December 31, 2004.

   Inserted: (3) Limitation.--A claim may not be filed by any person seeking contribution or indemnity.

   Inserted: (b) Statute of Limitations.--

   Inserted: (1) In general.--Except as otherwise provided in this subsection, if an individual fails to file a claim with the Corporation under this section within 2 years after the date on which--

   Inserted: (A) the individual first received a medical diagnosis of an eligible disease or condition as provided for under this subtitle and subtitle C;

   Inserted: (B) the individual first discovered facts that would have led a reasonable person to obtain a medical diagnosis with respect to an eligible disease or condition; or

   Inserted: (C) the Chief Executive Officer certifies the Fund is operational, any claim relating to that injury, and any other asbestos claim related to that injury, shall be extinguished, and any recovery thereon shall be prohibited.

   Inserted: (2) Exception.--The statute of limitations in paragraph (1) does not apply to the progression of non-malignant diseases once the initial claim has been filed.

   Inserted: (3) Effect on pending claims.--

   Inserted: (A) In general.--If, on the date of enactment of this Act, an asbestos claimant has any timely filed asbestos claim that is pending--

   Inserted: (i) in a Federal or State court; or

   Inserted: (ii) with a trust established under title 11, United States Code, such claimant shall file a claim under this section within 2 years after such date of enactment, or any claim relating to that injury, and any other asbestos claim related to that injury shall be extinguished, and recovery there shall be prohibited.

   Inserted: (B) Special rule.--For purposes of this paragraph, a claim shall not be treated as pending with a trust established under title 11, United States Code, solely because a claimant whose claim was previously compensated by the trust has or alleges--

   Inserted: (i) a non-contingent right to the payment of future installments of a fixed award; or

   Inserted: (ii) a contingent right to recover some additional amount from the trust on the occurrence of a future event, such as the reevaluation of the trust's funding adequacy or projected claims experience.

   Inserted: (4) Effect of multiple injuries.--

   Inserted: (A) In general.--An asbestos claimant who receives an award under this title for an eligible disease or condition, and who subsequently develops another such injury, shall be eligible for additional awards under this title (subject to appropriate setoffs for such prior recovery of any award under this title and from any other collateral source) and the statute of limitations under paragraph (1) shall not begin to run with respect to such subsequent injury until such claimant obtains a medical diagnosis of such other injury or discovers facts that would have led a reasonable person to obtain such a diagnosis.

   Inserted: (B) Setoffs.--Any amounts paid or to be paid for a prior award under this Act shall be deducted as a setoff against amounts payable for the second injury claim.

   Inserted: (c) Required Information.--A claim filed under subsection (a) shall be in such form, and contain such information in such detail, as the Chief Executive Officer shall by written procedures prescribe. At a minimum, a claim shall include--

   Inserted: (1) the name, social security number, sex, date of birth, and, if applicable, date of death of the claimant;

   Inserted: (2) information relating to the identity of dependents and beneficiaries of the claimant;

   Inserted: (3) a complete employment history sufficient to establish required asbestos exposure, accompanied by Social Security records;

   Inserted: (4) a complete description of the asbestos exposure of the claimant, including, to the extent known, information on the site, or location of exposure, and duration and intensity of exposure;

   Inserted: (5) a description of the tobacco product use history of the claimant, including frequency and duration;

   Inserted: (6) an identification and description of the asbestos-related diseases or conditions of the claimant, accompanied by a written report by the claimant's physician with medical diagnoses and x-ray films, and other test results necessary to establish eligibility for an award under this Act;

   Inserted: (7) a description of any prior or pending civil action or other claim, including any claim under a workers' compensation law, brought by the claimant for asbestos-related injury or any other pulmonary, parenchymal, or pleural reaction, including an identification of any recovery of compensation or damages through settlement, judgment, or otherwise;

   Inserted: (8) for any claimant who has made a claim for asbestos-related injury or any other pulmonary, parenchymal, or pleural reaction under a workers' compensation law, a certification that the claimant has notified the workers' compensation insurer or self-insured employer of the claim made under this Act; and

   Inserted: (9) for any claimant who asserts that he or she is a nonsmoker or an ex-smoker, as defined in section 131, for purposes of an award under Malignant Level VI, evidence to support the assertion of nonsmoking or ex-smoking, including relevant medical records.

   Inserted: (d) Date of Filing.--A claim shall be considered to be filed on the date that the claimant mails the claim to the Office, as determined by postmark, or on the date that the claim is received by the Office, whichever is the earliest determinable date.

   Inserted: (e) Incomplete Claims.--If a claim filed under subsection (a) is incomplete, the Chief Executive Officer shall notify the claimant of the information necessary to complete the claim and inform the claimant of such services as may be available through the Claimant Assistance Program established under section 104 to assist the claimant in completing the claim. Any time periods for the processing of the claim shall be suspended until such time as the claimant submits the information necessary to complete the claim. If such information is not received within 1 year after the date of such notification, the claim shall be dismissed.

   Inserted: SEC. 114. ELIGIBILITY DETERMINATIONS AND CLAIM AWARDS.

   Inserted: (a) In General.--

   Inserted: (1) Review of claims.--The Chief Executive Officer shall, in accordance with this section, determine whether each claim filed under this Act satisfies the requirements for eligibility for an award under this Act and, if so, the value of the award. In making such determinations, the Chief Executive Officer shall consider the claim presented by the claimant, the factual and medical evidence submitted by the claimant in support of the claim, and the results of such investigation as the Chief Executive Officer may deem necessary to determine whether the claim satisfies the criteria for eligibility established by this Act.

   Inserted: (2) Additional evidence.--The Chief Executive Officer may request the submission of medical evidence in addition to the minimum requirements of section 113(c) if necessary or appropriate to make a determination of eligibility for an award, in which case the cost of obtaining such additional information or testing shall be paid by the Corporation in accordance with CPT codes at medicare rates by region, at the time of provision of services.

   Inserted: (b) Proposed Decisions.--Not later than 90 days after the filing of a claim, the Chief Executive Officer shall provide to the claimant (and the claimant's representative) a proposed decision accepting or rejecting the claim in whole or in part and specifying the amount of the proposed award, if any. The proposed decision shall be in writing, shall contain findings of fact and conclusions of law, and shall contain an explanation of the procedure for obtaining review of the proposed decision.

   Inserted: (c) Review of Proposed Decisions.--

   Inserted: (1) Right to hearing.--

   Inserted: (A) In general.--Any claimant not satisfied with a proposed decision of the Chief Executive Officer under subsection (b) shall be entitled, on written request made within 90 days after the date of the issuance of the decision, to a hearing on the claim of that claimant before a representative of the Chief Executive Officer. At the hearing, the claimant shall be entitled to present oral evidence and written testimony in further support of that claim.

   Inserted: (B) Conduct of hearing.--When practicable, the hearing will be set at a time and place convenient for the claimant. In conducting the hearing, the representative of the Chief Executive Officer shall not be bound by common law or statutory rules of evidence, by technical or formal rules of procedure, or by section 554 of title 5, United States Code, except as provided by this Act, but shall conduct the hearing in such manner as to best ascertain the rights of the claimant. For this purpose, the representative shall receive such relevant evidence as the claimant adduces and such other evidence as the representative determines necessary or useful in evaluating the claim.

   Inserted: (2) Review of written record.--In lieu of a hearing under paragraph (1), any claimant not satisfied with a proposed decision of the Chief Executive Officer shall have the option, on written request made within 90 days after the date of the issuance of the decision, of obtaining a review of the written record by a representative of the Chief Executive Officer. If such review is requested, the claimant shall be afforded an opportunity to submit any written evidence or argument which he or she believes relevant.

   Inserted: (d) Final Decisions.--

   Inserted: (1) In general.--If the period of time for requesting review of the proposed decision expires and no request has been filed, or if the claimant waives any objections to the proposed decision, the Chief Executive Officer shall issue a final decision. If such decision materially differs from the proposed decision, the claimant shall be entitled to review of the decision under subsection (c).

   Inserted: (2) Time and content.--If the claimant requests review of all or part of the proposed decision the Chief Executive Officer shall issue a final decision on the claim not later than 180 days after the request for review is received, if the claimant requests a hearing, or not later than 90 days after the request for review is received, if the claimant requests review of the written record. Such decision shall be in writing and contain findings of fact and conclusions of law.

   Inserted: (e) Representation.--A claimant may authorize an attorney or other individual to represent him or her in any proceeding under this Act.

   Inserted: SEC. 115. MEDICAL EVIDENCE AUDITING PROCEDURES.

   Inserted: (a) In General.--

   Inserted: (1) Development.--The Chief Executive Officer shall develop methods for auditing and evaluating the medical evidence submitted as part of a claim. The Chief Executive Officer may develop additional methods for auditing and evaluating other types of evidence or information received by the Chief Executive Officer.

   Inserted: (2) Refusal to consider certain evidence.--

   Inserted: (A) In general.--If the Chief Executive Officer determines that an audit conducted in accordance with the methods developed under paragraph (1) demonstrates that the medical evidence submitted by a specific physician or medical facility is not consistent with prevailing medical practices or the applicable requirements of this Act, any medical evidence from such physician or facility shall be unacceptable for purposes of establishing eligibility for an award under this Act.

   Inserted: (B) Notification.--Upon a determination by the Chief Executive Officer under subparagraph (A), the Chief Executive Officer shall notify the physician or medical facility involved of the results of the audit. Such physician or facility shall have a right to appeal such determination under procedures issued by the Chief Executive Officer.

   Inserted: (b) Review of Certified B-Readers.--

   Inserted: (1) Evaluation.--At a minimum, the Chief Executive Officer shall prescribe procedures to randomly assign a statistically significant sample of claims for evaluation by independent certified B-readers of x-rays submitted in support of a claim, the cost of which shall be paid by the Corporation.

   Inserted: (2) Disagreement.--If an independent certified B-reader assigned under paragraph (1) disagrees with the quality grading or ILO level assigned to an x-ray submitted in support of a claim, the Chief Executive Officer shall require a review of such x-rays by a second independent certified B-reader.

   Inserted: (3) Effect on claim.--If neither certified B-reader under paragraph (2) agrees with the quality grading and the ILO grade level assigned to an x-ray as part of the claim, the Chief Executive Officer shall take into account the findings of the 2 independent B readers in making the determination on such claim.

   Inserted: (4) Certified b-readers.--The Chief Executive Officer shall maintain a list of a minimum of 50 certified B-readers eligible to participate in the independent reviews, chosen from all certified B-readers. When an x-ray is sent for independent review, the Chief Executive Officer shall choose the certified B-reader at random from that list.

   Inserted: (c) Smoking Assessment.--

   Inserted: (1) In general.--

   Inserted: (A) Records and documents.--To aid in the assessment of the accuracy of claimant representations as to their smoking status for purposes of determining eligibility and amount of award under Malignant Level VI, the Chief Executive Officer shall have the authority, notwithstanding any other provision of law, to obtain relevant records and documents, including--

   Inserted: (i) records of past medical treatment and evaluation;

   Inserted: (ii) affidavits of appropriate individuals;

   Inserted: (iii) applications for insurance and supporting materials; and

   Inserted: (iv) employer records of medical examinations.

   Inserted: (B) Consent.--The claimant shall provide consent for the Chief Executive Officer to obtain such records and documents where required.

   Inserted: (2) Review.--The frequency of review of records and documents submitted under paragraph (1)(A) shall be at the discretion of the Chief Executive Officer, but shall address at least 5 percent of the claimants asserting status as nonsmokers or ex-smokers.

   Inserted: (3) Consent.--

   Inserted: (A) In general.--The Chief Executive Officer may require the performance of blood tests or any other appropriate medical test, where claimants assert they are nonsmokers or ex-smokers for purposes of an award under Malignant Level VI, the cost of which shall be paid by the Corporation.

   Inserted: (B) Serum cotinine screening.--The Chief Executive Officer shall require the performance of serum cotinine screening of all claimants who assert they are nonsmokers or ex-smokers for purposes of an award under Malignant Level VI, the cost of which shall be paid by the Corporation.

   Inserted: (4) Penalty for false statements.--

   Inserted: (A) In general.--Any false information submitted under this subsection shall be subject to criminal prosecution or civil penalties as provided under section 1348 of title 18, United States Code (as added by this Act) and section 101(c)(2).

   Inserted: (B) No compensation.--Any claimant penalized as described under subparagraph (A) shall not be entitled to compensation under the Fund.

   Inserted: (d) Pulmonary Function Testing.--The Chief Executive Officer shall develop auditing procedures for pulmonary function test results submitted as part of a claim, to ensure that tests are conducted in accordance with American Thoracic Society Criteria, as defined under section 121(a)(13).

   Inserted: Subtitle C--Medical Criteria SEC. 121. MEDICAL CRITERIA REQUIREMENTS.

   Inserted: (a) Definitions.--In this section, the following definitions shall apply:

   Inserted: (1) Asbestosis determined by pathology.--The term "asbestosis determined by pathology" means indications of asbestosis based on the pathological grading system for asbestosis described in the Special Issues of the Archives of Pathology and Laboratory Medicine, "Asbestos-associated Diseases", Vol. 106, No. 11, App. 3 (October 8, 1982).

   Inserted: (2) Bilateral asbestos-related nonmalignant reaction.--The term "bilateral asbestos-related nonmalignant reaction" means a diagnosis of bilateral asbestos-related nonmalignant reaction based on--

   Inserted: (A) an x-ray reading of 1/1 or higher based on the ILO grade scale;

   Inserted: (B) bilateral pleural plaques;

   Inserted: (C) bilateral pleural thickening; or

   Inserted: (D) bilateral pleural calcification.

   Inserted: (3) Bilateral pleural reaction of b2.--The term "bilateral pleural reaction of B2" means a chest wall pleural thickening or plaque with a maximum width of at least 5 millimeters and a total length of at least \1/4\ of the projection of the lateral chest wall.

   Inserted: (4) Certified b-reader.--The term "certified B-reader" means an individual who is certified by the National Institute of Occupational Safety and Health and whose certification by the National Institute of Occupational Safety and Health is up to date.

   Inserted: (5) Diffuse pleural thickening.--The term "diffuse pleural thickening" means blunting of either costophrenic angle and bilateral pleural plaque or bilateral pleural thickening.

   Inserted: (6) FEV1.--The term "FEV1" means forced expiratory volume (1 second), which is the maximal volume of air expelled in 1 second during performance of the spirometric test for forced vital capacity.

   Inserted: (7) 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.

   Inserted: (8) ILO grade.--The term "ILO grade" means the radiological ratings for the presence of lung changes as determined from a chest x-ray, all as established from time to time by the International Labor Organization.

   Inserted: (9) Lower limits of normal.--The term "lower limits of normal" means the fifth percentile of healthy populations as defined in the American Thoracic Society statement on lung function testing (Amer. Rev. Resp. Disease 1991, 144:1202-1218) and any future revision of the same statement.

   Inserted: (10) Nonsmoker.--The term "nonsmoker" means a claimant who--

   Inserted: (A) never smoked; or

   Inserted: (B) has smoked fewer than 100 cigarettes or the equivalent amount of other tobacco products during the claimant's lifetime.

   Inserted: (11) PO<inf>2</inf>.--The term "PO<inf>2</inf>" means the partial pressure (tension) of oxygen, which measures the amount of dissolved oxygen in the blood.

   Inserted: (12) Pulmonary function testing.--The term "pulmonary function testing" means spirometry testing that is in material compliance with the quality criteria established by the American Thoracic Society and is performed on equipment which is in material compliance with the standards of the American Thoracic Society for technical quality and calibration.

   Inserted: (13) Substantial occupational exposure to asbestos.--

   Inserted: (A) In general.--The term "substantial occupational exposure" means employment in an industry and an occupation where for a substantial portion of a normal work year for that occupation, the claimant--

   Inserted: (i) handled raw asbestos fibers;

   Inserted: (ii) fabricated asbestos-containing products so that the claimant in the fabrication process was exposed to raw asbestos fibers;

   Inserted: (iii) altered, repaired, or otherwise worked with an asbestos-containing product such that the claimant was exposed on a regular basis to significant amounts of asbestos fibers; or

   Inserted: (iv) worked in close proximity to other workers engaged in the activities described under clause (i), (ii), or (iii), such that the claimant was exposed on a regular basis to significant amounts of asbestos fibers.

   Inserted: (B) Regular basis.--In this paragraph, the term "on a regular basis" means on a frequent or recurring basis.

   Inserted: (14) TLC.--The term "TLC" means total lung capacity, which is the total volume of air in the lung after maximal inspiration.

   Inserted: (15) Weighted occupational exposure.--

   Inserted: (A) In general.--The term "weighted occupational exposure" means exposure for a period of years calculated according to the exposure weighting formula under subparagraphs (B) through (E).

   Inserted: (B) Moderate exposure.--Subject to subparagraph (E), each year that a claimant's primary occupation, during a substantial portion of a normal work year for that occupation, involved working in areas immediate to where asbestos-containing products were being installed, repaired, or removed under circumstances that involved regular airborne emissions of significant amounts of asbestos fibers, shall count as 1 year of substantial occupational exposure.

   Inserted: (C) Heavy exposure.--Subject to subparagraph (E), each year that a claimant's primary occupation, during a substantial portion of a normal work year for that occupation, involved the direct installation, repair, or removal of asbestos-containing products such that the person was exposed on a regular basis to significant amounts of asbestos fibers, shall count as 2 years of substantial occupational exposure.

   Inserted: (D) Very heavy exposure.--Subject to subparagraph (E), each year that a claimant's primary occupation, during a substantial portion of a normal work year for that occupation, was in primary asbestos manufacturing, a World War II shipyard, or the asbestos insulation trades, such that the person was exposed on a regular basis to significant amounts of asbestos fibers, shall count as 4 years of substantial occupational exposure.

   Inserted: (E) Dates of exposure.--Each year of exposure calculated under subparagraphs (B), (C), and (D) that occurred before 1976 shall be counted at its full value. Each year from 1976 to 1986 shall be counted as \1/2\ of its value. Each year after 1986 shall be counted as \1/10\ of its value.

   Inserted: (F) Other claims.--Individuals who do not meet the provisions of subparagraphs (A) through (E) and believe their post-1976 or post-1986 exposures exceeded the Occupational Safety and Health Administration standard may submit evidence, documentation, work history, or other information to substantiate noncompliance with the Occupational Safety and Health Administration standard (such as lack of engineering or work practice controls, or protective equipment) such that exposures would be equivalent to exposures before 1976 or 1986, or to documented exposures in similar jobs or occupations where control measures had not been implemented.

   Inserted: (b) Medical Evidence.--

   Inserted: (1) Latency.--Unless otherwise specified, all diagnoses of an asbestos-related disease for a level under this section shall be accompanied by--

   Inserted: (A) a statement by the physician providing the diagnosis that at least 10 years have elapsed between the date of first exposure to asbestos or asbestos-containing products and the diagnosis; or

   Inserted: (B) a history of the claimant's exposure that is sufficient to establish a 10-year latency period between the date of first exposure to asbestos or asbestos-containing products and the diagnosis.

   Inserted: (2) Diagnostic guidelines.--All diagnoses of asbestos-related diseases shall be based upon--

   Inserted: (A) for disease Levels I through V, in the case of a claimant who was living at the time the claim was filed--

   Inserted: (i) a physical examination of the claimant by the physician providing the diagnosis;

   Inserted: (ii) an evaluation of smoking history and exposure history before making a diagnosis;

   Inserted: (iii) an x-ray reading by a certified B-reader; and

   Inserted: (iv) pulmonary function testing in the case of disease Levels III, IV, and V;

   Inserted: (B) for disease Levels I through V, in the case of a claimant who was deceased at the time the claim was filed, a report from a physician based upon a review of the claimant's medical records which shall include--

   Inserted: (i) pathological evidence of the non-malignant asbestos-related disease; or

   Inserted: (ii) an x-ray reading by a certified B-reader;

   Inserted: (C) for disease Levels VI through VIII, in the case of a claimant who was living at the time the claim was filed--

   Inserted: (i) a physical examination by the claimant's physician providing the diagnosis; or

   Inserted: (ii) a diagnosis of such a malignant asbestos-related disease, as described in this section, by a board-certified pathologist; and

   Inserted: (D) for disease Levels VI through VIII, in the case of a claimant who was deceased at the time the claim was filed--

   Inserted: (i) a diagnosis of such a malignant asbestos-related disease, as described in this section, by a board-certified pathologist; and

   Inserted: (ii) a report from a physician based upon a review of the claimant's medical records.

   Inserted: (3) Credibility of medical evidence.--To ensure the medical evidence provided in support of a claim is credible and consistent with recognized medical standards, a claimant under this title may be required to submit--

   Inserted: (A) x-rays or computerized tomography;

   Inserted: (B) detailed results of pulmonary function tests;

   Inserted: (C) laboratory tests;

   Inserted: (D) tissue samples;

   Inserted: (E) results of medical examinations;

   Inserted: (F) reviews of other medical evidence; and

   Inserted: (G) medical evidence that complies with recognized medical standards regarding equipment, testing methods, and procedure to ensure the reliability of such evidence as may be submitted.

   Inserted: (c) Exposure Evidence.--

   Inserted: (1) In general.--To qualify for any disease level, the claimant shall demonstrate--

   Inserted: (A) a minimum exposure to asbestos or asbestos-containing products;

   Inserted: (B) the exposure occurred in the United States, its territories or possessions, or while a United States citizen, while an employee of an entity organized under any Federal or State law regardless of location, or while a United States citizen while serving on any United States flagged or owned ship, provided the exposure results from such employment or service; and

   Inserted: (C) any additional asbestos exposure requirement under this section.

   Inserted: (2) General exposure requirements.--In order to establish exposure to asbestos, a claimant shall present meaningful and credible evidence--

   Inserted: (A) by an affidavit of the claimant;

   Inserted: (B) by an affidavit of a coworker or family member, if the claimant is deceased and such evidence is found in proceedings under this title to be reasonably reliable;

   Inserted: (C) by invoices, construction, or similar records; or

   Inserted: (D) any other credible evidence.

   Inserted: (d) Asbestos Disease Levels.--

   Inserted: (1) Nonmalignant level i.--To receive Level I compensation, a claimant shall provide--

   Inserted: (A) a diagnosis of bilateral asbestos-related nonmalignant disease; and

   Inserted: (B) evidence of 5 years cumulative occupational exposure to asbestos.

   Inserted: (2) Nonmalignant level ii.--To receive Level II compensation, a claimant shall provide--

   Inserted: (A) a diagnosis of bilateral asbestos-related nonmalignant disease with ILO grade of 1/1 or greater, and showing small irregular opacities of shape or size, either ss, st, or tt, and present in both lower lung zones, or asbestosis determined by pathology, or blunting of either costophrenic angle and bilateral pleural plaque;

   Inserted: (B) evidence of TLC less than 80 percent and FVC less than the lower limits of normal, and FEV1/FVC ratio less than 65 percent;

   Inserted: (C) evidence of 5 or more weighted years of substantial occupational exposure to asbestos; and

   Inserted: (D) supporting medical documentation establishing asbestos exposure as a substantial contributing factor in causing the pulmonary condition in question.

   Inserted: (3) Nonmalignant level iii.--To receive Level III compensation a claimant shall provide--

   Inserted: (A) a diagnosis of bilateral asbestos-related nonmalignant disease with ILO grade of 1/1 or greater and showing small irregular opacities of shape or size, either ss, st, or tt, and present in both lower lung zones, or asbestosis determined by pathology with a college of American Pathologists National Institution for Occupational Safety and Health level of 3 or 4;

   Inserted: (B) evidence of TLC less than 80 percent, FVC less than the lower limits of normal and FEV1/FVC ratio greater than or equal to 65 percent;

   Inserted: (C) evidence of 5 or more weighted years of substantial occupational exposure to asbestos; and

   Inserted: (D) supporting medical documentation--

   Inserted: (i) establishing asbestos exposure as a substantial contributing factor in causing the pulmonary condition in question; and

   Inserted: (ii) excluding other more likely causes of that pulmonary condition.

   Inserted: (4) Nonmalignant level iv.--To receive Level IV compensation a claimant shall provide--

   Inserted: (A) diagnosis of bilateral asbestos-related nonmalignant reaction with ILO grade of 1/1 or greater and showing small irregular opacities of shape or size, either ss, st, or tt, and present in both lower lung zones, or asbestosis determined by pathology;

   Inserted: (B) evidence of TLC less than 60 percent or FVC less than 60 percent, and FEV1/FVC ratio greater than or equal to 65 percent;

   Inserted: (C) evidence of 5 or more weighted years of substantial occupational exposure to asbestos before diagnosis; and

   Inserted: (D) supporting medical documentation--

   Inserted: (i) establishing asbestos exposure as a substantial contributing factor in causing the pulmonary condition in question; and

   Inserted: (ii) excluding other more likely causes of that pulmonary condition.

   Inserted: (5) Nonmalignant level v.--To receive Level V compensation a claimant shall provide--

   Inserted: (A) diagnosis of bilateral asbestos-related nonmalignant disease with ILO grade of 1/1 or greater and showing small irregular opacities of shape or size, either ss, st, or tt, and

   Inserted: present in both lower lung zones, or asbestosis determined by pathology;

   Inserted: (B)(i) evidence of TLC less than 50 percent or FVC less than 50 percent, and FEV1/FVC ratio greater than or equal to 65 percent; or

   Inserted: (ii) PO<inf>2</inf> less than 55 mm/Hg, plus a FEV1/FVC ratio not less than 65 percent;

   Inserted: (C) evidence of 5 or more weighted years of substantial occupational exposure to asbestos; and

   Inserted: (D) supporting medical documentation--

   Inserted: (i) establishing asbestos exposure as a substantial contributing factor in causing the pulmonary condition in question; and

   Inserted: (ii) excluding other more likely causes of that pulmonary condition.

   Inserted: (6) Malignant level vi.--To receive Level VI compensation, a claimant shall provide--

   Inserted: (A) a diagnosis of a primary lung cancer disease on the basis of findings by a board certified pathologist;

   Inserted: (B)(i) a diagnosis by a board-certified pathologist of asbestosis, based on a chest x-ray of at least 1/0 on the ILO scale and showing small irregular opacities of shape or size, either ss, st, or tt, and present in both lower lung zones evidence of 10 or more weighted years of substantial occupational exposure to asbestos;

   Inserted: (ii) a diagnosis by a board-certified pathologist of asbestosis, based on a chest x-ray of at least 1/1 on the ILO scale and showing small irregular opacities of shape or size, either ss, st, or tt, and present in both lower lung zones and evidence of 8 or more weighted years of substantial occupational exposure to asbestos; or

   Inserted: (iii) asbestosis determined by pathology and 10 or more weighted years of substantial occupational exposure to asbestos; and

   Inserted: (C) supporting medical documentation establishing asbestos exposure as a substantial contributing factor in causing the lung cancer in question.

   Inserted: (7) Malignant level vii.--To receive Level VII compensation, a claimant shall provide--

   Inserted: (A) a diagnosis of malignant mesothelioma disease on the basis of findings by a board certified pathologist; and

   Inserted: (B) credible evidence of identifiable exposure to asbestos resulting from--

   Inserted: (i) occupational exposure to asbestos;

   Inserted: (ii) exposure to asbestos fibers brought into the home of the claimant by a worker occupationally exposed to asbestos; or

   Inserted: (iii) exposure to asbestos fibers resulting from living or working in the proximate vicinity of a factory, shipyard, building demolition site, or other operation that regularly released asbestos fibers into the air due to operations involving asbestos at that site.

   Inserted: (e) Smoking History.--In considering a claim with respect to Level VI, the Corporation shall consider the intensity and duration of exposure, smoking history, and the quality of evidence relating to exposure and smoking. Claimants shall bear the burden of producing meaningful and credible evidence of their smoking history as part of their claim submission.

   Inserted: Subtitle D--Awards SEC. 131. AMOUNT.

   Inserted: (a) In General.--An asbestos claimant who meets the requirements of section 111 shall be entitled to an award in an amount determined by reference to the benefit table and the matrices developed under subsection (b).

   Inserted: (b) Benefit Table.--

   Inserted: (1) In general.--An asbestos claimant with an eligible disease or condition established in accordance with section 121 shall be eligible for an award as determined under this subsection. The award for all asbestos claimants with an eligible disease or condition established in accordance with section 121 shall be according to the following schedule:

   Inserted: LevScheduled Condition or Disease Scheduled Value .............................. ..............................

   Inserted: I Asbestosis/Pleural Reaction A Medical Monitoring II Mixed Disease With Impairment $20,000 III Asbestosis/Pleural Reaction B $100,000 IV Severe Asbestosis............ $400,000 V Disabling Asbestosis......... $850,000 VI Lung Cancer With Asbestosis.. mokers, $575,000; ex-smokers, $950,000; nonsmokers, $1,100,000 VII Mesothelioma................. $1,100,000

   Inserted: (2) Definitions.--In this section--

   Inserted: (A) the term "nonsmoker" means a claimant who--

   Inserted: (i) never smoked; or

   Inserted: (ii) has smoked fewer than 100 cigarettes or the equivalent of other tobacco products during the claimant's lifetime; and

   Inserted: (B) the term "ex-smoker" means a claimant who has not smoked during any portion of the 12-year period preceding the diagnosis of lung cancer.

   Inserted: (3) Cost-of-living adjustment.--

   Inserted: (A) In general.--Beginning January 1, 2007, award amounts under paragraph (1) shall be annually increased by an amount equal to such dollar amount multiplied by the cost-of-living adjustment, rounded to the nearest $1,000 increment.

   Inserted: (B) Calculation of cost-of-living adjustment.--For the purposes of subparagraph (A), the cost-of-living adjustment for any calendar year shall be the percentage, if any, by which the consumer price index for the succeeding calendar year exceeds the consumer price index for calendar year 2005.

   Inserted: (C) Consumer price index.--

   Inserted: (i) In general.--For the purposes of subparagraph (B), the consumer price index for any calendar year is the average of the consumer price index as of the close of the 12-month period ending on August 31 of such calendar year.

   Inserted: (ii) Definition.--For purposes of clause (i), the term "consumer price index" means the consumer price index published by the Department of Labor. The consumer price index series to be used for award escalations shall include the consumer price index used for all-urban consumers, with an area coverage of the United States city average, for all items, based on the 1982-1984 index based period, as published by the Department of Labor.

   Inserted: SEC. 132. REIMBURSABLE MEDICAL MONITORING.

   Inserted: (a) Recipients.--Reimbursable Medical Monitoring is only available to persons who have been approved for Level I compensation under section 131.

   Inserted: (b) Relation to Statute of Limitations.--The filing of a claim under this Act that seeks reimbursement for medical monitoring shall not be considered as evidence that the claimant has discovered facts that would otherwise commence the period applicable for purposes of the statute of limitations under section 113(b).

   Inserted: (c) Provider Charges.--All medical monitoring costs shall be reimbursed in accordance with CPT codes at medicare rates by region, at the time of the provision of services.

   Inserted: (d) Procedures.--The Chief Executive Officer shall issue written procedures applicable to asbestos claimants under this section.

   Inserted: SEC. 133. PAYMENT.

   Inserted: (a) Structured Payments.--

   Inserted: (1) In general.--An asbestos claimant who is entitled to an award should receive the amount of the award through structured payments from the Fund, made over a period of 3 years, and in no event more than 4 years after the date of final adjudication of the claim.

   Inserted: (2) Payment period and amount.--There shall be a presumption that any award paid under this subsection shall provide for payment of--

   Inserted: (A) 40 percent of the total amount in year 1;

   Inserted: (B) 30 percent of the total amount in year 2; and

   Inserted: (C) 30 percent of the total amount in year 3.

   Inserted: (3) Extension of payment period.--

   Inserted: (A) In general.--The Chief Executive Officer shall develop guidelines to provide for the payment period of an award under subsection (a) to be extended to a 4-year period if such action is warranted in order to preserve the overall solvency of the Fund. Such guidelines shall include reference to the number of claims made to the Fund and the awards made and scheduled to be paid from the Fund as provided under section 405.

   Inserted: (B) Limitations.--In no event shall less than 50 percent of an award be paid in the first 2 years of the payment period under this subsection.

   Inserted: (4) Accelerated payments.--The Chief Executive Officer shall develop guidelines to provide for accelerated payments to asbestos claimants who are mesothelioma victims and who are alive on the date on which the Chief Executive Officer receives notice of the eligibility of the claimant. Such payments shall be credited against the first regular payment under the structured payment plan for the claimant.

   Inserted: (5) Expedited payments.--The Chief Executive Officer shall develop guidelines to provide for expedited payments to asbestos claimants in cases of exigent circumstances or extreme hardship caused by asbestos-related injury.

   Inserted: (6) Annuity.--An asbestos claimant may elect to receive any payments to which that claimant is entitled under this title in the form of an annuity.

   Inserted: (b) Limitation on Transferability.--A claim filed under this Act shall not be assignable or otherwise transferable under this Act.

   Inserted: (c) Creditors.--An award under this title shall be exempt from all claims of creditors and from levy, execution, and attachment or other remedy for recovery or collection of a debt, and such exemption may not be waived.

   Inserted: (d) Medicare as Secondary Payer.--No award under this title shall be deemed a payment for purposes of section 1862 of the Social Security Act (42 U.S.C. 1395y).

   Inserted: (e) Exempt Property in Asbestos Claimant's Bankruptcy Case.--If an asbestos claimant files a petition for relief under section 301 of title 11, United States Code, no award granted under this Act shall be treated as property of the bankruptcy estate of the asbestos claimant in accordance with section 541(b)(6) of title 11, United States Code.

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

   Inserted: (a) In General.--The amount of an award otherwise available to an asbestos claimant under this title shall be reduced by the amount of collateral source compensation.

   Inserted: (b) Exclusions.--In no case shall statutory benefits under workers' compensation laws, and veterans' benefits programs be deemed as collateral source compensation for purposes of this section.

   Inserted: SEC. 135. STATE LIEN LAWS.

   Inserted: (a) In General.--Any award of compensation under this Act shall be deemed a third-party judgment or settlement for purposes of any Federal or State workers' compensation lien law.

   Inserted: (b) Workers' Compensation.--

   Inserted: (1) Benefits before enactment.--To the extent any workers' compensation insurer, self-insured employer, or Federal workers' compensation Chief Executive Officer elects to assert any State statutory lien rights against any award of compensation under this Act, it may not seek recovery from any awards made to a claimant by the Fund for any workers' compensation benefits paid before the date of enactment of this Act.

   Inserted: (2) Benefits on or after enactment.--

   Inserted: (A) In general.--Upon acceptance or compromise of a workers' compensation claim first made after the date of enactment of this Act, or for any claim accepted or compromised before the date of enactment of this Act where future workers' compensation payments are due to be paid on or after such date, a workers' compensation insurer or self-insured employer's obligation to make any further payments shall not arise until such amount further due and owing exceeds the total amount of the award paid to the claimant.

   Inserted: (B) Annual amounts.--In the event the annual workers' compensation benefits further due and owing exceed the annual amount of the award paid to the claimant from the Fund, then the workers' compensation insurer or self-insured employer shall be obligated to pay the claimant the difference between such annual workers' compensation benefit and the annual Fund payment.

   Inserted: (C) Other rules.--No workers' compensation insurer or self-insured employer shall seek recovery from any such award paid to the claimant by the Fund. This subsection explicitly preempts any Federal or State workers' compensation lien law that is inconsistent with this subsection.

   Inserted: TITLE II--ASBESTOS INJURY CLAIMS RESOLUTION FUND

   Inserted: Subtitle A--Asbestos Defendants Funding Allocation SEC. 201. DEFINITIONS.

   Inserted: In this subtitle, the following definitions shall apply:

   Inserted: (1) Affiliated group.--The term "affiliated group"--

   Inserted: (A) means a defendant participant that is an ultimate parent and any person whose entire beneficial interest is directly or indirectly owned by that ultimate parent on the date of enactment of this Act; and

   Inserted: (B) shall not include any person that is a debtor or any direct or indirect majority-owned subsidiary of a debtor.

   Inserted: (2) Class action trust.--The term "class action trust" means a trust or similar entity established to hold assets for the payment of asbestos claims asserted against a debtor or participating defendant, under a settlement that--

   Inserted: (A) is a settlement of class action claims under rule 23 of the Federal Rules of Civil Procedure; and

   Inserted: (B) has been approved by a final judgment of a United States district court before the date of enactment of this Act.

   Inserted: (3) Debtor.--The term "debtor"--

   Inserted: (A) means--

   Inserted: (i) a person that is subject to a case pending under a chapter of title 11, United States Code, on the date of enactment of this Act or at any time during the 1-year period immediately preceding that date, irrespective of whether the debtor's case under that title has been dismissed; and

   Inserted: (ii) all of the direct or indirect majority-owned subsidiaries of a person described under clause (i), regardless of whether any such majority-owned subsidiary has a case pending under title 11, United States Code; and

   Inserted: (B) shall not include an entity--

   Inserted: (i) subject to chapter 7 of title 11, United States Code, if a final decree closing the estate shall have been entered before the date of enactment of this Act; or

   Inserted: (ii) subject to chapter 11 of title 11, United States Code, if a plan of reorganization for such entity shall have been confirmed by a duly entered order or judgment of a court that is no longer subject to any appeal or judicial review, and the substantial consummation, as such term is defined in section 1101(2) of title 11, United States Code, of such plan of reorganization has occurred.

   Inserted: (4) Indemnifiable cost.--The term "indemnifiable cost" means a cost, expense, debt, judgment, or settlement incurred with respect to an asbestos claim that, at any time before December 31, 2002, was or could have been subject to indemnification, contribution, surety, or guaranty.

   Inserted: (5) Indemnitee.--The term "indemnitee" means a person against whom any asbestos claim has been asserted before December 31, 2002, who has received from any other person, or on whose behalf a sum has been paid by such other person to any third person, in settlement, judgment, defense, or indemnity in connection with an alleged duty with respect to the defense or indemnification of such person concerning that asbestos claim, other than under a policy of insurance or reinsurance.

   Inserted: (6) Indemnitor.--The term "indemnitor" means a person who has paid under a written agreement at any time before December 31, 2002, a sum in settlement, judgment, defense, or indemnity to or on behalf of any person defending against an asbestos claim, in connection with an alleged duty with respect to the defense or indemnification of such person concerning that asbestos claim, except that payments by an insurer or reinsurer under a contract of insurance or reinsurance shall not make the insurer or reinsurer an indemnitor for purposes of this subtitle.

   Inserted: (7) Prior asbestos expenditures.--The term "prior asbestos expenditures"--

   Inserted: (A) means the gross total amount paid by or on behalf of a person at any time before December 31, 2002, in settlement, judgment, defense, or indemnity costs related to all asbestos claims against that person;

   Inserted: (B) includes payments made by insurance carriers to or for the benefit of such person or on such person's behalf with respect to such asbestos claims, except as provided in section 204(g);

   Inserted: (C) shall not include any payment made by a person in connection with or as a result of changes in insurance reserves required by contract or any activity or dispute related to insurance coverage matters for asbestos-related liabilities; and

   Inserted: (D) shall not include any payment made by or on behalf of persons who are or were common carriers by railroad for asbestos claims brought under the Act of April 22, 1908 (45 U.S.C. 51 et seq.), commonly known as the Employers' Liability Act, as a result of operations as a common carrier by railroad, including settlement, judgment, defense, or indemnity costs associated with these claims.

   Inserted: (8) Trust.--The term "trust" means any trust, as described in sections 524(g)(2)(B)(i) or 524(h) of title 11, United States Code, or established in conjunction with an order issued under section 105 of title 11, United States Code, established or formed under the terms of a chapter 11 plan of reorganization, which in whole or in part provides compensation for asbestos claims.

   Inserted: (9) Ultimate parent.--The term "ultimate parent" means a person--

   Inserted: (A) that owned, as of December 31, 2002, the entire beneficial interest, directly or indirectly, of at least 1 other person; and

   Inserted: (B) whose entire beneficial interest was not owned, on December 31, 2002, directly or indirectly, by any other single person (other than a natural person).

   Inserted: SEC. 202. AUTHORITY AND TIERS.

   Inserted: (a) Liability for Payments to the Fund.--

   Inserted: (1) In general.--Defendant participants shall be liable for payments to the Fund in accordance with this section based on tiers and subtiers assigned to defendant participants.

   Inserted: (2) Aggregate payment obligations level.--The total payments required of all defendant participants over the life of the Fund shall not exceed a sum equal to $90,000,000,000 less any bankruptcy trust credits under section 222(d). The Chief Executive Officer shall have the authority to allocate the payments required of the defendant participants among the tiers as provided in this title.

   Inserted: (3) Ability to enter reorganization.--Notwithstanding any other provision of this Act, all debtors that, together with all of their direct or indirect majority-owned subsidiaries, have prior asbestos expenditures less than $1,000,000 may proceed with the filing, solicitation, and confirmation of a plan of reorganization that does not comply with the requirements of this Act, including a trust and channeling injunction under section 524(g) of title 11, United States Code. Any asbestos claim made in conjunction with a plan of reorganization allowable under the preceding sentence shall be subject to section 403(d) of this Act.

   Inserted: (b) Tier I.--Tier I shall include all debtors that, together with all of their direct or indirect majority-owned subsidiaries, have prior asbestos expenditures greater than $1,000,000.

   Inserted: (c) Treatment of Tier I Business Entities in Bankruptcy.--

   Inserted: (1) Definition.--

   Inserted: (A) In general.--In this subsection, the term "bankrupt business entity" means a person that is not a natural person that--

   Inserted: (i) filed a petition for relief under chapter 11, of title 11, United States Code, before January 1, 2003;

   Inserted: (ii) has not substantially consummated, as such term is defined under section 1101(2) of title 11, United States Code, a plan of reorganization as of the date of enactment of this Act; and

   Inserted: (iii) the bankruptcy court presiding over the business entity's case determines, after notice and a hearing upon motion filed by the entity within 30 days after the date of enactment of this Act, that asbestos liability was not the sole or precipitating cause of the entity's chapter 11 filing.

   Inserted: (B) Motion and related matters.--A motion under subparagraph (A)(iii) shall be supported by--

   Inserted: (i) an affidavit or declaration of the chief executive officer, chief financial officer, or chief legal officer of the business entity; and

   Inserted: (ii) copies of the entity's public statements and securities filings made in connection with the entity's filing for chapter 11 protection.

   Inserted: Notice of such motion shall be as directed by the bankruptcy court, and the hearing shall be limited to consideration of the question of whether or not asbestos liability was the sole or precipitating cause of the entity's chapter 11 filing. The bankruptcy court shall hold a hearing and make its determination with respect to the motion within 60 days after the date the motion is filed. In making its determination, the bankruptcy court shall take into account the affidavits, public statements, and securities filings, and other information, if any, submitted by the entity and all other facts and circumstances presented by an objecting party. Any review of this determination shall be an expedited appeal and limited to whether the decision was against the weight of the evidence. Any appeal of a determination shall be an expedited review to the United States Circuit Court of Appeals for the circuit in which the bankruptcy is filed.

   Inserted: (2) Proceeding with reorganization plan.--A bankrupt business entity may proceed with the filing, solicitation, confirmation, and consummation of a plan of reorganization that does not comply with the requirements of this Act, including a trust and channeling injunction described in section 524(g) of title 11, United States Code, notwithstanding any other provisions of this Act, if the bankruptcy court makes a favorable determination under paragraph (1)(B), unless the bankruptcy court's determination is overruled on appeal and all appeals are final. Such a bankrupt business entity may continue to so proceed, if--

   Inserted: (A) on request of a party in interest or on a motion of the court, and after a notice and a hearing, the bankruptcy court presiding over the chapter 11 case of the bankrupt business entity determines that such confirmation is required to avoid the liquidation or the need for further financial reorganization of that entity; and

   Inserted: (B) an order confirming the plan of reorganization is entered by the bankruptcy court within 9 months after the date of enactment of this Act or such longer period of time approved by the bankruptcy court for cause shown.

   Inserted: (3) Applicability.--If the bankruptcy court does not make the determination required under paragraph (2), or if an order confirming the plan is not entered within 9 months after the date of enactment of this Act or such longer period of time approved by the bankruptcy court for cause shown, the provisions of this Act shall apply to the bankrupt business entity notwithstanding the certification. Any timely appeal under title 11, United States Code, from a confirmation order entered during the applicable time period shall automatically extend the time during which this Act is inapplicable to the bankrupt business entity, until the appeal is fully and finally resolved.

   Inserted: (4) Offsets.--

   Inserted: (A) Payments by insurers.--To the extent that a bankrupt business entity or debtor successfully confirms a plan of reorganization, including a trust, and channeling injunction that involves payments by insurers who are otherwise subject to this Act as described under section 524(g) of title 11, United States Code, an insurer who makes payments to the trust shall obtain a dollar-for-dollar reduction in the amount otherwise payable by that insurer under this Act to the Fund.

   Inserted: (B) Contributions to fund.--Any cash payments by a bankrupt business entity, if any, to a trust described under section 524(g) of title 11, United States Code, may be counted as a contribution to the Fund.

   Inserted: (d) Tiers II Through VI.--Except as provided in section 204 and subsection (b) of this section, persons or affiliated groups are included in Tier II, III, IV, V, or VI, according to the prior asbestos expenditures paid by such persons or affiliated groups as follows:

   Inserted: (1) Tier II: $75,000,000 or greater.

   Inserted: (2) Tier III: $50,000,000 or greater, but less than $75,000,000.

   Inserted: (3) Tier IV: $10,000,000 or greater, but less than $50,000,000.

   Inserted: (4) Tier V: $5,000,000 or greater, but less than $10,000,000.

   Inserted: (5) Tier VI: $1,000,000 or greater, but less than $5,000,000.

   Inserted: (e) Tier Placement and Costs.--

   Inserted: (1) Permanent tier placement.--After a defendant participant or affiliated group is assigned to a tier and subtier under section 204(i)(6), the participant or affiliated group shall remain in that tier and subtier throughout the life of the Fund, regardless of subsequent events, including--

   Inserted: (A) the filing of a petition under a chapter of title 11, United States Code;

   Inserted: (B) a discharge of debt in bankruptcy;

   Inserted: (C) the confirmation of a plan of reorganization; or

   Inserted: (D) the sale or transfer of assets to any other person or affiliated group, unless the Administrator finds that the information submitted by the participant or affiliated group to support its inclusion in that tier was inaccurate.

   Inserted: (2) Costs.--Payments to the Fund by all persons that are the subject of a case under a chapter of title 11, United States Code, after the date of enactment of this Act--

   Inserted: (A) shall constitute costs and expenses of administration of the case under section 503 of title 11, United States Code, and shall be payable in accordance with the payment provisions under this subtitle notwithstanding the pendency of the case under that title 11;

   Inserted: (B) shall not be stayed or affected as to enforcement or collection by any stay or injunction power of any court; and

   Inserted: (C) shall not be impaired or discharged in any current or future case under title 11, United States Code.

   Inserted: (f) Superseding Provisions.--

   Inserted: (1) In general.--All of the following shall be superseded in their entireties by this Act:

   Inserted: (A) The treatment of any asbestos claim in any plan of reorganization with respect to any debtor included in Tier I.

   Inserted: (B) Any asbestos claim against any debtor included in Tier I.

   Inserted: (C) Any agreement, understanding, or undertaking by any such debtor or any third party with respect to the treatment of any asbestos claim filed in a debtor's bankruptcy case or with respect to a debtor before the date of enactment of this Act, whenever such debtor's case is either still pending, if such case is pending under a chapter other than chapter 11 of title 11, United States Code, or subject to confirmation or substantial consummation of a plan of reorganization under chapter 11 of title 11, United States Code.

   Inserted: (2) Prior agreements of no effect.--Notwithstanding section 403(c)(3), any plan of reorganization, agreement, understanding, or undertaking by any debtor (including any pre-petition agreement, understanding, or undertaking that requires future performance) or any third party under paragraph (1), and any agreement, understanding, or undertaking entered into in anticipation, contemplation, or furtherance of a plan of reorganization, to the extent it relates to any asbestos claim, shall be of no force or effect, and no person shall have any right or claim with respect to any such agreement, understanding, or undertaking.

   Inserted: SEC. 203. SUBTIERS.

   Inserted: (a) In General.--

   Inserted: (1) Subtier liability.--Except as otherwise provided under subsections (b), (d), and (l) of section 204, persons or affiliated groups shall be included within Tiers I through VII and shall pay amounts to the Fund in accordance with this section.

   Inserted: (2) Revenues.--

   Inserted: (A) In general.--For purposes of this section, revenues shall be determined in accordance with generally accepted accounting principles, consistently applied, using the amount reported as revenues in the annual report filed with the Securities and Exchange Commission in accordance with the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) for the most recent fiscal year ending on or before December 31, 2002. If the defendant participant or affiliated group does not file reports with the Securities and Exchange Commission, revenues shall be the amount that the defendant participant or affiliated group would have reported as revenues under the rules of the Securities and Exchange Commission in the event that it had been required to file.

   Inserted: (B) Insurance premiums.--Any portion of revenues of a defendant participant that is derived from insurance premiums shall not be used to calculate the payment obligation of that defendant participant under this subtitle.

   Inserted: (C) Debtors.--Each debtor's revenues shall include the revenues of the debtor and all of the direct or indirect majority-owned subsidiaries of that debtor, except that the pro forma revenues of a person that is included in Subtier 2 of Tier I shall not be included in calculating the revenues of any debtor that is a direct or indirect majority owner of such Subtier 2 person. If a debtor or affiliated group includes a person in respect of whose liabilities for asbestos claims a class action trust has been established, there shall be excluded from the 2002 revenues of such debtor or affiliated group--

   Inserted: (i) all revenues of the person in respect of whose liabilities for asbestos claims the class action trust was established; and

   Inserted: (ii) all revenues of the debtor and affiliated group attributable to the historical business operations or assets of such person, regardless of whether such business operations or assets were owned or conducted during the year 2002 by such person or by any other person included within such debtor and affiliated group.

   Inserted: (b) Tier I Subtiers.--

   Inserted: (1) In general.--Each debtor in Tier I shall be included in subtiers and shall pay amounts to the Fund as provided under this section.

   Inserted: (2) Subtier 1.--

   Inserted: (A) In general.--All persons that are debtors with prior asbestos expenditures of $1,000,000 or greater, shall be included in Subtier 1.

   Inserted: (B) Payment.--

   Inserted: (i) In general.--Each debtor included in Subtier 1 shall pay on an annual basis 1.67024 percent of the debtor's 2002 revenues.

   Inserted: (ii) Exception to payment percentage.--Notwithstanding clause (i), a debtor in Subtier 1 shall pay, on an annual basis, $500,000 if--

   Inserted: (I) such debtor, including its direct or indirect majority-owned subsidiaries, has less than $10,000,000 in prior asbestos expenditures;

   Inserted: (II) at least 95 percent of such debtors revenues derive from the provision of engineering and construction services; and

   Inserted: (III) such debtor, including its direct or indirect majority-owned subsidiaries, never manufactured, sold, or distributed asbestos-containing products in the stream of commerce.

   Inserted: (C) Other assets.--The Chief Executive Officer, at the sole discretion of the Chief Executive Officer, may allow a Subtier 1 debtor to satisfy its funding obligation under this paragraph with assets other than cash if the Chief Executive Officer determines that requiring an all-cash payment of the debtor's funding obligation would render the debtor's reorganization infeasible.

   Inserted: (D) Liability.--

   Inserted: (i) In general.--If a person who is subject to a case pending under a chapter of title 11, United States Code, as defined in section 201(3)(A)(i), does not pay when due any payment obligation for the debtor, the Chief Executive Officer shall have the right to seek payment of all or any portion of the entire amount due (as well as any other amount for which the debtor may be liable under sections 223 and 224) from any of the direct or indirect majority-owned subsidiaries under section 201(3)(A)(ii).

   Inserted: (ii) Cause of action.--Notwithstanding section 221(e), this Act shall not preclude actions among persons within a debtor under section 201(3)(A) (i) and (ii) with respect to the payment obligations under this Act.

   Inserted: (iii) Right of contribution.--

   Inserted: (I) In general.--Notwithstanding any other provision of this Act, if a direct or indirect majority-owned foreign subsidiary of a debtor participant (with such relationship to the debtor participant as determined on the date of enactment of this Act) is or becomes subject to any foreign insolvency proceedings, and such foreign direct or indirect-majority owned subsidiary is liquidated in connection with such foreign insolvency proceedings (or if the debtor participant's interest in such foreign subsidiary is otherwise canceled or terminated in connection with such foreign insolvency proceedings), the debtor participant shall have a claim against such foreign subsidiary or the estate of such foreign subsidiary in an amount equal to the greater of--

   Inserted: (aa) the estimated amount of all current and future asbestos liabilities against such foreign subsidiary; or

   Inserted: (bb) the foreign subsidiary's allocable share of the debtor participant's funding obligations to the Fund as determined by such foreign subsidiary's allocable share of the debtor participant's 2002 gross revenue.

   Inserted: (II) Determination of claim amount.--The claim amount under subclause (I) (aa) or (bb) shall be determined by a court of competent jurisdiction in the United States.

   Inserted: (III) Effect on payment obligation.--The right to, or recovery under, any such claim shall not reduce, limit, delay, or otherwise affect the debtor participant's payment obligations under this Act.

   Inserted: (iv) Maximum annual payment obligation.--Subject to any payments under sections 204(l) and 222(c), and paragraphs (3), (4), and (5) of this subsection, the annual payment obligation by a debtor under subparagraph (B) of this paragraph shall not exceed $80,000,000.

   Inserted: (3) Subtier 2.--

   Inserted: (A) In general.--Notwithstanding paragraph (2), all persons that are debtors that have no material continuing business operations, other than class action trusts under paragraph (6), but hold cash or other assets that have been allocated or earmarked for the settlement of asbestos claims shall be included in Subtier 2.

   Inserted: (B) Assignment of assets.--Not later than 90 days after the date of enactment of this Act, each person included in Subtier 2 shall assign all of its unencumbered assets to the Fund.

   Inserted: (4) Subtier 3.--

   Inserted: (A) In general.--Notwithstanding paragraph (2), all persons that are debtors other than those included in Subtier 2, which have no material continuing business operations and no cash or other assets allocated or earmarked for the settlement of any asbestos claim, shall be included in Subtier 3.

   Inserted: (B) Assignment of unencumbered assets.--Not later than 90 days after the date of enactment of this Act, each person included in Subtier 3 shall contribute an amount equal to 50 percent of its total unencumbered assets.

   Inserted: (5) Calculation of unencumbered assets.--Unencumbered assets shall be calculated as the Subtier 3 person's total assets, excluding insurance-related assets, jointly held, in trust or otherwise, with a defendant participant, less--

   Inserted: (A) all allowable administrative expenses;

   Inserted: (B) allowable priority claims under section 507 of title 11, United States Code; and

   Inserted: (C) allowable secured claims.

   Inserted: (6) Class action trust.--The assets of any class action trust that has been established in respect of the liabilities for asbestos claims of any person included within a debtor and affiliated group that has been included in Tier I (exclusive of any assets needed to pay previously incurred expenses and asbestos claims within the meaning of section 403(d)(1), before the date of enactment of this Act) shall be transferred to the Fund not later than 60 days after the date of enactment of this Act.

   Inserted: (c) Tier II Subtiers.--

   Inserted: (1) In general.--Each person or affiliated group in Tier II shall be included in 1 of the 5 subtiers of Tier II, based on the person's or affiliated group's revenues. Such subtiers shall each contain as close to an equal number of total persons and affiliated groups as possible, with--

   Inserted: (A) those persons or affiliated groups with the highest revenues included in Subtier 1;

   Inserted: (B) those persons or affiliated groups with the next highest revenues included in Subtier 2;

   Inserted: (C) those persons or affiliated groups with the lowest revenues included in Subtier 5;

   Inserted: (D) those persons or affiliated groups with the next lowest revenues included in Subtier 4; and

   Inserted: (E) those persons or affiliated groups remaining included in Subtier 3.

   Inserted: (2) Payments.--Each person or affiliated group within each subtier shall pay, on an annual basis, the following:

   Inserted: (A) Subtier 1: $27,500,000.

   Inserted: (B) Subtier 2: $24,750,000.

   Inserted: (C) Subtier 3: $22,000,000.

   Inserted: (D) Subtier 4: $19,250,000.

   Inserted: (E) Subtier 5: $16,500,000.

   Inserted: (d) Tier III Subtiers.--

   Inserted: (1) In general.--Each person or affiliated group in Tier III shall be included in 1 of the 5 subtiers of Tier III, based on the person's or affiliated group's revenues. Such subtiers shall each contain as close to an equal number of total persons and affiliated groups as possible, with--

   Inserted: (A) those persons or affiliated groups with the highest revenues included in Subtier 1;

   Inserted: (B) those persons or affiliated groups with the next highest revenues included in Subtier 2;

   Inserted: (C) those persons or affiliated groups with the lowest revenues included in Subtier 5;

   Inserted: (D) those persons or affiliated groups with the next lowest revenues included in Subtier 4; and

   Inserted: (E) those persons or affiliated groups remaining included in Subtier 3.

   Inserted: (2) Payments.--Each person or affiliated group within each subtier shall pay, on an annual basis, the following:

   Inserted: (A) Subtier 1: $16,500,000.

   Inserted: (B) Subtier 2: $13,750,000.

   Inserted: (C) Subtier 3: $11,000,000.

   Inserted: (D) Subtier 4: $8,250,000.

   Inserted: (E) Subtier 5: $5,500,000.

   Inserted: (e) Tier IV Subtiers.--

   Inserted: (1) In general.--Each person or affiliated group in Tier IV shall be included in 1 of the 4 subtiers of Tier IV, based on the person's or affiliated group's revenues. Such subtiers shall each contain as close to an equal number of total persons and affiliated groups as possible, with those persons or affiliated groups with the highest revenues in Subtier 1, those with the lowest revenues in Subtier 4. Those persons or affiliated groups with the highest revenues among those remaining will be included in Subtier 2 and the rest in Subtier 3.

   Inserted: (2) Payment.--Each person or affiliated group within each subtier shall pay, on an annual basis, the following:

   Inserted: (A) Subtier 1: $3,850,000.

   Inserted: (B) Subtier 2: $2,475,000.

   Inserted: (C) Subtier 3: $1,650,000.

   Inserted: (D) Subtier 4: $550,000.

   Inserted: (f) Tier V Subtiers.--

   Inserted: (1) In general.--Each person or affiliated group in Tier V shall be included in 1 of the 3 subtiers of Tier V, based on the person's or affiliated group's revenues. Such subtiers shall each contain as close to an equal number of total persons and affiliated groups as possible, with those persons or affiliated groups with the highest revenues in Subtier 1, those with the lowest revenues in Subtier 3, and those remaining in Subtier 2.

   Inserted: (2) Payment.--Each person or affiliated group within each subtier shall pay, on an annual basis, the following:

   Inserted: (A) Subtier 1: $1,000,000.

   Inserted: (B) Subtier 2: $500,000.

   Inserted: (C) Subtier 3: $200,000.

   Inserted: (g) Tier VI Subtiers.--

   Inserted: (1) In general.--Each person or affiliated group in Tier VI shall be included in 1 of the 3 subtiers of Tier VI, based on the person's or affiliated group's revenues. Such subtiers shall each contain as close to an equal number of total persons and affiliated groups as possible, with those persons or affiliated groups with the highest revenues in Subtier 1, those with the lowest revenues in Subtier 3, and those remaining in Subtier 2.

   Inserted: (2) Payment.--Each person or affiliated group within each subtier shall pay, on an annual basis, the following:

   Inserted: (A) Subtier 1: $500,000.

   Inserted: (B) Subtier 2: $250,000.

   Inserted: (C) Subtier 3: $100,000.

   Inserted: (3) Other payment for certain persons and affiliated groups.--

   Inserted: (A) In general.--Notwithstanding any other provision of this subsection, and if an adjustment authorized by this subsection does not impair the overall solvency of the Fund, any person or affiliated group within Tier VI whose required subtier payment in any given year would exceed such person's or group's average annual expenditure on settlements, and judgments of asbestos disease-related claims over the 8 years before the date of enactment of this Act shall make the payment required of the immediately lower subtier or, if the person's or group's average annual expenditures on settlements and judgments over the 8 years before the date of enactment of this Act is less than $100,000, shall not be required to make a payment under this Act.

   Inserted: (B) No further adjustment.--Any person or affiliated group that receives an adjustment under this paragraph shall not be eligible to receive any further adjustment under section 204(d).

   Inserted: (h) Tier VII.--

   Inserted: (1) In general.--Notwithstanding prior asbestos expenditures that might qualify a person or affiliated group to be included in Tiers II, III, IV, V, or VI, a person or affiliated group shall also be included in Tier VII, if the person or affiliated group--

   Inserted: (A) is or has at any time been subject to asbestos claims brought under the Act of April 22, 1908 (45 U.S.C. 51 et seq.), commonly known as the Employers' Liability Act, as a result of operations as a common carrier by railroad; and

   Inserted: (B) has paid (including any payments made by others on behalf of such person or affiliated group) not less than $5,000,000 in settlement, judgment, defense, or indemnity costs relating to such claims.

   Inserted: (2) Additional amount.--The payment requirement for persons or affiliated groups included in Tier VII shall be in addition to any payment requirement applicable to such person or affiliated group under Tiers II through VI.

   Inserted: (3) Subtier 1.--Each person or affiliated group in Tier VII with revenues of $6,000,000,000 or more is included in Subtier 1 and shall make annual payments of $11,000,000 to the Fund.

   Inserted: (4) Subtier 2.--Each person or affiliated group in Tier VII with revenues of less than $6,000,000,000, but not less than $4,000,000,000 is included in Subtier 2 and shall make annual payments of $5,500,000 to the Fund.

   Inserted: (5) Subtier 3.--Each person or affiliated group in Tier VII with revenues of less than $4,000,000,000, but not less than $500,000,000 is included in Subtier 3 and shall make annual payments of $550,000 to the Fund.

   Inserted: (6) Joint venture revenues and liability.--

   Inserted: (A) Revenues.--For purposes of this subsection, the revenues of a joint venture shall be included on a pro rata basis reflecting relative joint ownership to calculate the revenues of the parents of that joint venture. The joint venture shall not be responsible for a contribution amount under this subsection.

   Inserted: (B) Liability.--For purposes of this subsection, the liability under the Act of April 22, 1908 (45 U.S.C. 51 et seq.), commonly known as the Employers' Liability Act, shall be attributed to the parent owners of the joint venture on a pro rata basis, reflecting their relative share of ownership. The joint venture shall not be responsible for a payment amount under this provision.

   Inserted: SEC. 204. ASSESSMENT ADMINISTRATION.

   Inserted: (a) In General.--Each defendant participant or affiliated group shall pay to the Fund in the amounts provided under this subtitle as appropriate for its tier and subtier each year until the earlier to occur of the following:

   Inserted: (1) The participant or affiliated group has satisfied its obligations under this subtitle during the 30 annual payment cycles of the operation of the Fund.

   Inserted: (2) The amount received by the Fund from defendant participants, excluding any amounts rebated to defendant participants under subsections (d) and (m), equals the maximum aggregate payment obligation of section 202(a)(2).

   Inserted: (b) Small Business Exemption.--Notwithstanding any other provision of this subtitle, a person or affiliated group that is a small business concern (as defined under section 3 of the Small Business Act (15 U.S.C. 632)), on December 31, 2002, is exempt from any payment requirement under this subtitle and shall not be included in the subtier allocations under section 203.

   Inserted: (c) Procedures.--The Chief Executive Officer shall prescribe procedures on how amounts payable under this subtitle are to be paid, including, to the extent the Chief Executive Officer determines appropriate, procedures relating to payment in installments.

   Inserted: (d) Adjustments.--

   Inserted: (1) In general.--Under expedited procedures established by the Chief Executive Officer, a defendant participant may seek adjustment of the amount of its payment obligation based on severe financial hardship or demonstrated inequity. The Chief Executive Officer may determine whether to grant an adjustment and the size of any such adjustment, in accordance with this subsection. A defendant participant has a right to obtain a rehearing of the Chief Executive Officer's determination under this subsection under the procedures prescribed in subsection (i)(10). The Chief Executive Officer may adjust a defendant participant's payment obligations under this subsection, either by forgiving the relevant portion of the otherwise applicable payment obligation or by providing relevant rebates from the defendant hardship and inequity adjustment account created under subsection (j) after payment of the otherwise applicable payment obligation, at the discretion of the Chief Executive Officer.

   Inserted: (2) Financial hardship adjustments.--

   Inserted: (A) In general.--A defendant participant may apply for an adjustment based on financial hardship at any time during the period in which a payment obligation to the Fund remains outstanding and may qualify for such adjustment by demonstrating that the amount of its payment obligation under the statutory allocation would constitute a severe financial hardship.

   Inserted: (B) Term.--Subject to the annual availability of funds in the defendant hardship and inequity adjustment account established under subsection (j), a financial hardship adjustment under this subsection shall have a term of 3 years.

   Inserted: (C) Renewal.--After an initial hardship adjustment is granted under this paragraph, a defendant participant may renew its hardship adjustment by demonstrating that it remains justified.

   Inserted: (D) Reinstatement.--Following the expiration of the hardship adjustment period provided for under this section and during the funding period prescribed under subsection (a), the Chief Executive Officer shall annually determine whether there has been a material change in the financial condition of the defendant participant such that the Chief Executive Officer may, consistent with the policies and legislative intent underlying this Act, reinstate under terms and conditions established by the Chief Executive Officer any part or all of the defendant participant's payment obligation under the statutory allocation that was not paid during the hardship adjustment term.

   Inserted: (3) Inequity adjustments.--

   Inserted: (A) In general.--A defendant partici-pant--

   Inserted: (i) may qualify for an adjustment based on inequity by demonstrating that the amount of its payment obligation under the statutory allocation is exceptionally inequitable--

   Inserted: (I) when measured against the amount of the likely cost to the defendant participant net of insurance of its future liability in the tort system in the absence of the Fund;

   Inserted: (II) when compared to the median payment rate for all defendant participants in the same tier; or

   Inserted: (III) when measured against the percentage of the prior asbestos expenditures of the defendant that were incurred with respect to claims that neither resulted in an adverse judgment against the defendant, nor were the subject of a settlement that required a payment to a plaintiff by or on behalf of that defendant;

   Inserted: (ii) shall qualify for a two-tier main tier and a two-tier subtier adjustment reducing the defendant participant's payment obligation based on inequity by demonstrating that not less than 95 percent of such person's prior asbestos expenditures arose from claims related to the manufacture and sale of railroad locomotives and related products, so long as such person's manufacture and sale of railroad locomotives and related products is temporally and causally remote, and for purposes of this clause, a person's manufacture and sale of railroad locomotives and related products shall be deemed to be temporally and causally remote if the asbestos claims historically and generally filed against such person relate to the manufacture and sale of railroad locomotives and related products by an entity dissolved more than 25 years before the date of enactment of this Act; and

   Inserted: (iii) shall be granted a two-tier adjustment reducing the defendant participant's payment obligation based on inequity by demonstrating that not less than 95 percent of such participant's prior asbestos expenditures arose from asbestos claims based on successor liability arising from a merger to which the participant or its predecessor was a party that occurred at least 30 years before the date of enactment of this Act, and that such prior asbestos expenditures exceed the inflation-adjusted value of the assets of the company from which such liability was derived in such merger, and upon such demonstration the Chief Executive Officer shall grant such adjustment for the life of the Fund and amounts paid by such defendant participant prior to such adjustment in excess of its adjusted payment obligation under this clause shall be credited against next succeeding required payment obligations.

   Inserted: (B) Payment rate.--For purposes of subparagraph (A), the payment rate of a defendant participant is the payment amount of the defendant participant as a percentage of such defendant participant's gross revenues for the year ending December 31, 2002.

   Inserted: (C) Term.--Subject to the annual availability of funds in the defendant hardship and inequity adjustment account established under subsection (j), an inequity adjustment under this subsection shall have a term of 3 years.

   Inserted: (D) Renewal.--A defendant participant may renew an inequity adjustment every 3 years by demonstrating that the adjustment remains justified.

   Inserted: (E) Reinstatement.--

   Inserted: (i) In general.--Following the termination of an inequity adjustment under subparagraph (A), and during the funding period prescribed under subsection (a), the Chief Executive Officer shall annually determine whether there has been a material change in conditions which would support a finding that the amount of the defendant participant's payment under the statutory allocation was not inequitable. Based on this determination, the Chief Executive Officer may, consistent with the policies and legislative intent underlying this Act, reinstate any or all of the payment obligations of the defendant participant as if the inequity adjustment had not been granted for that 3-year period.

   Inserted: (ii) Terms and conditions.--In the event of a reinstatement under clause (i), the Chief Executive Officer may require the defendant participant to pay any part or all of amounts not paid due to the inequity adjustment on such terms and conditions as established by the Chief Executive Officer.

   Inserted: (4) Limitation on payments by defendant participants.--

   Inserted: (A) In general.--Under expedited procedures established by the Chief Executive Officer, any defendant participant may apply for a limitation on its annual payment obligation to the Fund by showing that it qualifies under subparagraph (C). The Chief Executive Officer shall promptly grant that application if the requirements under subparagraph (C) are satisfied.

   Inserted: (B) Stay of payment.--A defendant participant who applies for a limitation on its annual payment obligation to the Fund under subparagraph (A) shall have the payment required under subsection (i)(1)(A)(iv) stayed until the Chief Executive Officer has made a determination with respect to the application of that defendant participant.

   Inserted: (C) Application for limitation.--A defendant participant may apply under subparagraph (A) for a limit on its annual payment obligation to the Fund if that defendant participant--

   Inserted: (i) is included in Tiers II, III, IV, V, or VI under section 202; and

   Inserted: (ii) has prior asbestos expenditures less than $200,000,000 or has revenues as determined under section 203 that are less than $15,000,000,000.

   Inserted: (D) Limitation.--

   Inserted: (i) In general.--A defendant participant that qualifies for a limitation under this paragraph may apply for only 1 of the limits under subclause (I), (II), or (III) of clause (ii). A defendant participant may not change its application once the application has been approved by the Chief Executive Officer.

   Inserted: (ii) Application for 1 limitation.--Subject to clause (i), a defendant participant may apply for a limit of an amount equal to--

   Inserted: (I) 125 percent of the arithmetical average for fiscal years 1998 through 2002 of the annual prior asbestos expenditures of that defendant participant;

   Inserted: (II) 150 percent of the arithmetical average for fiscal years 1998 through 2002 of the annual prior asbestos expenditures of that defendant participant, excluding--

   Inserted: (aa) the amount of any payments by insurance carriers for the benefit of that defendant participant or on behalf of that defendant participant; and

   Inserted: (bb) any reimbursements of the amounts actually paid by that defendant participant with respect to prior asbestos expenditures for fiscal years 1998 through 2002, regardless of when such reimbursements were actually paid; or

   Inserted: (III) 1.67024 percent of the revenues for the most recent fiscal year ending on or prior to December 31, 2002, of the affiliated group to which that defendant participant belongs.

   Inserted: (E) Judicial review.--A defendant participant is entitled to judicial review under section 303 of a denial of an application under this paragraph. During the pendency of that review, section 223(a) shall not apply to that defendant participant. Without regard to section 305(a), the reviewing court may, in its discretion, provide such interlocutory relief to the defendant participant as may be just.

   Inserted: (F) Applicability of the guarantee surcharge.--A defendant participant whose application under this paragraph is approved by the Chief Executive Officer, shall not be exempt from the guaranteed payment surcharge established under subsection (l), unless otherwise provided in this Act.

   Inserted: (G) Minimum payment.--Notwithstanding any other provision of this paragraph, a defendant participant that is granted a limitation by the Chief Executive Officer shall pay not less than 10 percent of the amount the participant is scheduled to pay under section 202.

   Inserted: (5) Limitation on adjustments.--The aggregate total of financial hardship adjustments under paragraph (2) and inequity adjustments under paragraph (3) in effect in any given year shall not exceed $300,000,000, except to the extent that--

   Inserted: (A) additional monies are available for such adjustments as a result of carryover of prior years' funds under subsection (j)(3) or as a result of monies being made available in that year under subsection (k)(1)(A); or

   Inserted: (B) the Chief Executive Officer determines that the $300,000,000 is insufficient and additional adjustments as provided under paragraph (5) are needed to address situations in which a defendant participant would otherwise be rendered insolvent by its payment obligations without such adjustment.

   Inserted: (6) Bankruptcy relief.--

   Inserted: (A) In general.--Any defendant participant may apply for an adjustment under this paragraph at any time during the period in which a payment obligation to the Fund remains outstanding and may qualify for such adjustment by demonstrating, to a reasonable degree of certainty, evidence that the amount of its payment obligation would render the defendant participant insolvent, as defined under section 101 of title 11, United States Code, and unable to pay its debts as they become due.

   Inserted: (B) Information required.--Any defendant participant seeking an adjustment or renewal of an adjustment under this paragraph shall provide the Chief Executive Officer with the information required under section 521(1) of title 11 of the United States Code.

   Inserted: (C) Limitation.--Any adjustment granted by the Chief Executive Officer under subparagraph (A) shall be limited to the extent reasonably necessary to prevent insolvency of a defendant participant.

   Inserted: (D) Term.--To the extent the Chief Executive Officer grants any relief under this paragraph, such adjustments shall have a term of 1 year. An adjustment may be renewed or modified on an annual basis upon the defendant participant demonstrating that the adjustment or modification remains justified under this paragraph.

   Inserted: (E) Reinstatement.--During the funding period prescribed under subparagraph (A), the Chief Executive Officer shall annually determine whether there has been a material change in the financial condition of any defendant participant granted an adjustment under this paragraph such that the Chief Executive Officer may, consistent with the policies and legislative intent underlying this Act, reinstate under terms and conditions established by the Chief Executive Officer any part or all of the defendant participant's payment obligation under the statutory allocation that was not paid during the adjustment term.

   Inserted: (7) Advisory panels.--

   Inserted: (A) Appointment.--The Chief Executive Officer shall appoint a Financial Hardship Adjustment Panel and an Inequity Adjustment Panel to advise the Chief Executive Officer in carrying out this subsection.

   Inserted: (B) Membership.--The membership of the panels appointed under subparagraph (A) may overlap.

   Inserted: (C) Coordination.--The panels appointed under subparagraph (A) shall coordinate their deliberations and advice.

   Inserted: (e) Limitation on Liability.--The liability of each defendant participant to pay to the Fund shall be limited to the payment obligations under this Act, and, except as provided in subsection (f) and section 203(b)(2)(D), no defendant participant shall have any liability for the payment obligations of any other defendant participant.

   Inserted: (f) Consolidation of Payments.--

   Inserted: (1) In general.--For purposes of determining the payment levels of defendant participants, any affiliated group including 1 or more defendant participants may irrevocably elect, as part of the submissions to be made under paragraphs (1) and (3) of subsection (i), to report on a consolidated basis all of the information necessary to determine the payment level under this subtitle and pay to the Fund on a consolidated basis.

   Inserted: (2) Election.--If an affiliated group elects consolidation as provided in this subsection--

   Inserted: (A) for purposes of this Act other than this subsection, the affiliated group shall be treated as if it were a single participant, including with respect to the assessment of a single annual payment under this subtitle for the entire affiliated group;

   Inserted: (B) the ultimate parent of the affiliated group shall prepare and submit each submission to be made under subsection (i) on behalf of the entire affiliated group and shall be solely liable, as between the Chief Executive Officer and the affiliated group only, for the payment of the annual amount due from the affiliated group under this subtitle, except that, if the ultimate parent does not pay when due any payment obligation for the affiliated group, the Chief Executive Officer shall have the right to seek payment of all or any portion of the entire amount due (as well as any other amount for which the affiliated group may be liable under sections 223 and 224) from any member of the affiliated group;

   Inserted: (C) all members of the affiliated group shall be identified in the submission under subsection (i) and shall certify compliance with this subsection and the Chief Executive Officer's regulations implementing this subsection; and

   Inserted: (D) the obligations under this subtitle shall not change even if, after the date of enactment of this Act, the beneficial ownership interest between any members of the affiliated group shall change.

   Inserted: (3) Cause of action.--Notwithstanding section 221(e), this Act shall not preclude actions among persons within an affiliated group with respect to the payment obligations under this Act.

   Inserted: (g) Determination of Prior Asbestos Expenditures.--

   Inserted: (1) In general.--For purposes of determining a defendant participant's prior asbestos expenditures, the Chief Executive Officer shall prescribe such rules as may be necessary or appropriate to assure that payments by indemnitors before December 31, 2002, shall be counted as part of the indemnitor's prior asbestos expenditures, rather than the indemnitee's prior asbestos expenditures, in accordance with this subsection.

   Inserted: (2) Indemnifiable costs.--If an indemnitor has paid or reimbursed to an indemnitee any indemnifiable cost or otherwise made a payment on behalf of or for the benefit of an indemnitee to a third party for an indemnifiable cost before December 31, 2002, the amount of such indemnifiable cost shall be solely for the account of the indemnitor for purposes under this Act.

   Inserted: (3) Insurance payments.--When computing the prior asbestos expenditures with respect to an asbestos claim, any amount paid or reimbursed by insurance shall be solely for the account of the indemnitor, even if the indemnitor would have no direct right to the benefit of the insurance, if--

   Inserted: (A) such insurance has been paid or reimbursed to the indemnitor or the indemnitee, or paid on behalf of or for the benefit of the indemnitee; and

   Inserted: (B) the indemnitor has either, with respect to such asbestos claim or any similar asbestos claim, paid or reimbursed to its indemnitee any indemnifiable cost or paid to any third party on behalf of or for the benefit of the indemnitee any indemnifiable cost.

   Inserted: (4) Treatment of certain expenditures.--Notwithstanding any other provision of this Act, where--

   Inserted: (A) an indemnitor entered into a stock purchase agreement in 1988 that involved the sale of the stock of businesses that produced friction and other products; and

   Inserted: (B) the stock purchase agreement provided that the indemnitor indemnified the indemnitee and its affiliates for losses arising from various matters, including asbestos claims--

   Inserted: (i) asserted before the date of the agreement; and

   Inserted: (ii) filed after the date of the agreement and prior to the 10-year anniversary of the stock sale, then the prior asbestos expenditures arising from the asbestos claims described in clauses (i) and (ii) shall not be for the account of either the indemnitor or indemnitee.

   Inserted: (h) Minimum Annual Payments.--

   Inserted: (1) In general.--The aggregate annual payments of defendant participants to the Fund shall be at least $3,000,000,000 for each calendar year in the first 30 years of the Fund, or until such shorter time as the condition set forth in subsection (a)(2) is attained.

   Inserted: (2) Guaranteed payment account.--To the extent payments in accordance with sections 202 and 203 (as modified by subsections (b), (d), (f), (g), and (m) of this section) fail in any year to raise at least $3,000,000,000, after applicable reductions or adjustments have been taken according to subsections (d) and (m), the balance needed to meet this required minimum aggregate annual payment shall be obtained from the defendant guaranteed payment account established under subsection (k).

   Inserted: (3) Guaranteed payment surcharge.--To the extent the procedure set forth in paragraph (2) is insufficient to satisfy the required minimum aggregate annual payment, after applicable reductions or adjustments have been taken according to subsections (d) and (m), the Chief Executive Officer shall unless the Chief Executive Officer implements a funding holiday under section 205(b), assess a guaranteed payment surcharge under subsection (l).

   Inserted: (i) Procedures for Making Payments.--

   Inserted: (1) Initial year: tiers ii-vi.--

   Inserted: (A) In general.--Not later than 90 days after enactment of this Act, each defendant participant that is included in Tiers II, III, IV, V, or VI shall file with the Chief Executive Officer--

   Inserted: (i) a statement of whether the defendant participant irrevocably elects to report on a consolidated basis under subsection (f);

   Inserted: (ii) a good-faith estimate of its prior asbestos expenditures;

   Inserted: (iii) a statement of its 2002 revenues, determined in accordance with section 203(a)(2);

   Inserted: (iv) payment in the amount specified in section 203 for the lowest subtier of the tier within which the defendant participant falls, except that if the defendant participant, or the affiliated group including the defendant participant, had 2002 revenues exceeding $3,000,000,000, it or its affiliated group shall pay the amount specified for Subtier 3 of Tiers II, III, or IV or Subtier 2 of Tiers V or VI, depending on the applicable Tier; and

   Inserted: (v) a signature page personally verifying the truth of the statements and estimates described under this subparagraph, as required under section 404 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201 et seq.).

   Inserted: (B) Relief.--

   Inserted: (i) In general.--The Chief Executive Officer shall establish procedures to grant a defendant participant relief from its initial payment obligation if the participant shows that--

   Inserted: (I) the participant is likely to qualify for a financial hardship adjustment; and

   Inserted: (II) failure to provide interim relief would cause severe irreparable harm.

   Inserted: (ii) Judicial relief.--The Chief Executive Officer's refusal to grant relief under clause (i) is subject to immediate judicial review under section 303.

   Inserted: (2) Initial year: tier i.--Not later than 60 days after enactment of this Act, each debtor shall file with the Chief Executive Officer--

   Inserted: (A) a statement identifying all bankruptcy cases associated with the debtor;

   Inserted: (B) a statement whether its prior asbestos expenditures exceed $1,000,000;

   Inserted: (C) a statement whether it has material continuing business operations and, if not, whether it holds cash or other assets that have been allocated or earmarked for asbestos settlements;

   Inserted: (D) in the case of debtors falling within Subtier 1 of Tier I--

   Inserted: (i) a statement of the debtor's 2002 revenues, determined in accordance with section 203(a)(2);

   Inserted: (ii) for those debtors subject to the payment requirement of section 203(b)(2)(B)(ii), a statement whether its prior asbestos expenditures do not exceed $10,000,000, and a description of its business operations sufficient to show the requirements of that section are met; and

   Inserted: (iii) a payment under section 203(b)(2)(B);

   Inserted: (E) in the case of debtors falling within Subtier 2 of Tier I, an assignment of its assets under section 203(b)(3)(B); and

   Inserted: (F) in the case of debtors falling within Subtier 3 of Tier I, a payment under section 203(b)(4)(B), and a statement of how such payment was calculated; and

   Inserted: (G) a signature page personally verifying the truth of the statements and estimates described under this paragraph, as required under section 404 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201 et seq.).

   Inserted: (3) Initial year: tier vii.--Not later than 90 days after enactment of this Act, each defendant participant in Tier VII shall file with the Chief Executive Officer--

   Inserted: (A) a good-faith estimate of all payments of the type described in section 203(h)(1) (as modified by section 203(h)(6));

   Inserted: (B) a statement of revenues calculated in accordance with sections 203(a)(2) and 203(h); and

   Inserted: (C) payment in the amount specified in section 203(h).

   Inserted: (4) Notice to participants.--Not later than 240 days after enactment of this Act, the Chief Executive Officer shall--

   Inserted: (A) directly notify all reasonably identifiable defendant participants of the requirement to submit information necessary to calculate the amount of any required payment to the Fund; and

   Inserted: (B) publish in a newspaper with a circulation of at least 500,000 and on the Internet a notice--

   Inserted: (i) setting forth the criteria in this Act, and as prescribed by the Chief Executive Officer in accordance with this Act, for paying under this subtitle as a defendant participant and requiring any person who may be a defendant participant to submit such information; and

   Inserted: (ii) that includes a list of all defendant participants notified by the Chief Executive Officer under subparagraph (A), and provides for 30 days for the submission by the public of comments or information regarding the completeness and accuracy of the list of identified defendant participants.

   Inserted: (5) Response required.--

   Inserted: (A) In general.--Any person who receives notice under paragraph (4)(A), and any other person meeting the criteria specified in the notice published under paragraph (4)(B), shall provide the Chief Executive Officer with an address to send any notice from the Chief Executive Officer in accordance with this Act and all the information required by the Chief Executive Officer in accordance with this subsection no later than the earlier of--

   Inserted: (i) 30 days after the receipt of direct notice; or

   Inserted: (ii) 30 days after the publication in a newspaper with a circulation of at least 500,000 and on the Internet.

   Inserted: (B) Certification.--The response submitted under subparagraph (A) shall be signed by a responsible corporate officer, general partner, proprietor, or individual of similar authority, who shall certify under penalty of law the completeness and accuracy of the information submitted.

   Inserted: (C) Consent to audit authority.--The response submitted under subparagraph (A) shall include, on behalf of the defendant participant or affiliated group, a consent to the Chief Executive Officer's audit authority under section 221(d).

   Inserted: (6) Notice of initial determination.--

   Inserted: (A) In general.--

   Inserted: (i) Notice to individual.--Not later than 60 days after receiving a response under paragraph (5), the Chief Executive Officer shall send the person a notice of initial determination identifying the tier and subtier, if any, into which the person falls and the annual payment obligation, if any, to the Fund, which determination shall be based on the information received from the person under this subsection and any other pertinent information available to the Chief Executive Officer and identified to the defendant participant.

   Inserted: (ii) Public notice.--Not later than 7 days after sending the notification of initial determination to defendant participants, the Chief Executive Officer shall publish in a newspaper with a circulation of at least 500,000 and on the Internet a notice listing the defendant participants that have been sent such notification, and the initial determination identifying the tier and subtier assignment and annual payment obligation of each identified participant.

   Inserted: (B) No response; incomplete response.--If no response in accordance with paragraph (5) is received from a defendant participant, or if the response is incomplete, the initial determination shall be based on the best information available to the Chief Executive Officer.

   Inserted: (C) Payments.--Within 30 days of receiving a notice of initial determination requiring payment, the defendant participant shall pay the Chief Executive Officer the amount required by the notice, after deducting any previous payment made by the participant under this subsection. If the amount that the defendant participant is required to pay is less than any previous payment made by the participant under this subsection, the Chief Executive Officer shall credit any excess payment against the future payment obligations of that defendant participant. The pendency of a petition for rehearing under paragraph (10) shall not stay the obligation of the participant to make the payment specified in the Chief Executive Officer's notice.

   Inserted: (7) Exemptions for information required.--

   Inserted: (A) Prior asbestos expenditures.--In lieu of submitting information related to prior asbestos expenditures as may be required for purposes of this subtitle, a non-debtor defendant participant may consent to be assigned to Tier II.

   Inserted: (B) Revenues.--In lieu of submitting information related to revenues as may be required for purposes of this subtitle, a non-debtor defendant participant may consent to be assigned to Subtier 1 of the defendant participant's applicable tier.

   Inserted: (8) New information.--

   Inserted: (A) Existing participant.--The Chief Executive Officer shall adopt procedures for requiring additional payment, or refunding amounts already paid, based on new information received.

   Inserted: (B) Additional participant.--If the Chief Executive Officer, at any time, receives information that an additional person may qualify as a defendant participant, the Chief Executive Officer shall require such person to submit information necessary to determine whether that person is required to make payments, and in what amount, under this subtitle and shall make any determination or take any other act consistent with this Act based on such information or any other information available to the Chief Executive Officer with respect to such person.

   Inserted: (9) Subpoenas.--The Chief Executive Officer may request the Attorney General to subpoena persons to compel testimony, records, and other information relevant to its responsibilities under this section. The Attorney General may enforce such subpoena in appropriate proceedings in the United States district court for the district in which the person to whom the subpoena was addressed resides, was served, or transacts business.

   Inserted: (10) Rehearing.--A defendant participant has a right to obtain rehearing of the Chief Executive Officer's determination under this subsection of the applicable tier or subtier, of the Chief Executive Officer's determination under subsection (d) of a financial hardship or inequity adjustment, and of the Chief Executive Officer's determination under subsection (m) of a distributor's adjustment, if the request for rehearing is filed within 30 days after the defendant participant's receipt of notice from the Chief Executive Officer of the determination. A defendant participant may not file an action under section 303 unless the defendant participant requests a rehearing under this paragraph. The Chief Executive Officer shall publish in a newspaper with a circulation of at least 500,000 and on the Internet a notice of any change in a defendant participant's tier or subtier assignment or payment obligation as a result of a rehearing.

   Inserted: (j) Defendant Hardship and Inequity Adjustment Account.--

   Inserted: (1) In general.--To the extent the total payments by defendant participants in any given year exceed the minimum aggregate annual payments required under subsection (h), excess monies up to a maximum of $300,000,000 in any such year shall be placed in a defendant hardship and inequity adjustment account established within the Fund by the Chief Executive Officer.

   Inserted: (2) Use of account monies.--Monies from the defendant hardship and inequity adjustment account shall be preserved and administered like the remainder of the Fund, but shall be reserved and may be used only--

   Inserted: (A) to make up for any relief granted to a defendant participant for severe financial hardship or demonstrated inequity under subsection (d) or to reimburse any defendant participant granted such relief after its payment of the amount otherwise due; and

   Inserted: (B) if the condition set forth in subsection (a)(2) is met, for any purpose that the Fund may serve under this Act.

   Inserted: (3) Carryover of unused funds.--To the extent the Chief Executive Officer does not, in any given year, use all of the funds allocated to the account under paragraph (1) for adjustments granted under subsection (d), remaining funds in the account shall be carried forward for use by the Chief Executive Officer for adjustments in subsequent years.

   Inserted: (k) Defendant Guaranteed Payment Account.--

   Inserted: (1) In general.--Subject to subsections (h) and (j), if there are excess monies paid by defendant participants in any given year, including any bankruptcy trust credits that may be due under section 222(d), such monies--

   Inserted: (A) at the discretion of the Chief Executive Officer, may be used to provide additional adjustments under subsection (d), up to a maximum aggregate of $50,000,000 in such year; and

   Inserted: (B) to the extent not used under subparagraph (A), shall be placed in a defendant guaranteed payment account established within the Fund by the Chief Executive Officer.

   Inserted: (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--

   Inserted: (A) to ensure the minimum aggregate annual payment required under subsection (h), after applicable reductions or adjustments have been taken according to subsections (d) and (m) is reached each year; and

   Inserted: (B) if the condition set forth in subsection (a)(2) is met, for any purpose that the Fund may serve under this Act.

   Inserted: (l) Guaranteed Payment Surcharge.--

   Inserted: (1) In general.--To the extent there are insufficient monies in the defendant guaranteed payment account established in subsection (k) to attain the minimum aggregate annual payment required under subsection (h) in any given year, the Chief Executive Officer shall, unless the Chief Executive Officer implements a funding holiday under section 205(b), impose on each defendant participant a surcharge as necessary to raise the balance required to attain the minimum aggregate annual payment required under subsection (h) 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), (g), and (m) of this section).

   Inserted: (2) Limitation.--

   Inserted: (A) In general.--In no case shall the Chief Executive Officer impose a surcharge under this subsection on any defendant participant included in Subtier 3 of Tiers V or VI as described under section 203.

   Inserted: (B) Reallocation.--Any amount not imposed under subparagraph (A) shall be reallocated on a pro-rata basis, in accordance with each defendant participant's (other than a defendant participant described under subparagraph (A)) relative annual liability under sections 202 and 203 (as modified by subsections (b), (d), (f), and (g) of this section).

   Inserted: (3) Certification.--

   Inserted: (A) In general.--Before imposing a guaranteed payment surcharge under this subsection, the Chief Executive Officer shall certify that he or she has used all reasonable efforts to collect mandatory payments for all defendant participants, including by using the authority in subsection (i)(9) of this section and section 223.

   Inserted: (B) Notice and comment.--Before making a final certification under subparagraph (C), the Chief Executive Officer shall publish in a newspaper with a circulation of at least 500,000 and on the Internet a notice of a proposed certification and provide in such notice for a public comment period of 30 days.

   Inserted: (C) Final certification.--

   Inserted: (i) In general.--The Chief Executive Officer shall publish a notice of the final certification in a newspaper with a circulation of at least 500,000 and on the Internet after consideration of all comments submitted under subparagraph (B).

   Inserted: (ii) Written notice.--Not later than 30 days after publishing any final certification under clause (i), the Chief Executive Officer shall provide each defendant participant with written notice of that defendant participant's payment, including the amount of any surcharge.

   Inserted: (m) Adjustments for Distributors.--

   Inserted: (1) Definition.--In this subsection, the term "distributor" means a person--

   Inserted: (A) whose prior asbestos expenditures arise exclusively from the sale of products manufactured by others;

   Inserted: (B) who did not prior to December 31, 2002, sell raw asbestos or a product containing more than 95 percent asbestos by weight;

   Inserted: (C) whose prior asbestos expenditures did not arise out of--

   Inserted: (i) the manufacture, installation, repair, reconditioning, maintaining, servicing, constructing, or remanufacturing of any product;

   Inserted: (ii) the control of the design, specification, or manufacture of any product; or

   Inserted: (iii) the sale or resale of any product under, as part of, or under the auspices of, its own brand, trademark, or service mark; and

   Inserted: (D) who is not subject to assignment under section 202 to Tier I, II, III or VII.

   Inserted: (2) Tier reassignment for distributors.--

   Inserted: (A) In general.--Notwithstanding section 202, the Chief Executive Officer shall assign a distributor to a Tier for purposes of this title under the procedures set forth in this paragraph.

   Inserted: (B) Designation.--After a final determination by the Chief Executive Officer under section 204(i), any person who is, or any affiliated group in which every member is, a distributor may apply to the Chief Executive Officer for adjustment of its Tier assignment under this subsection. Such application shall be prepared in accordance with such procedures as the Chief Executive Officer shall promulgate by rule. Once the Chief Executive Officer designates a person or affiliated group as a distributor under this subsection, such designation and the adjustment of tier assignment under this subsection are final.

   Inserted: (C) Payments.--Any person or affiliated group that seeks adjustment of its Tier assignment under this subsection shall pay all amounts required of it under this title until a final determination by the Chief Executive Officer is made under this subsection. Such payments may not be stayed pending any appeal. The Chief Executive Officer shall grant any person or affiliated group a refund or credit of any payments made if such adjustment results in a lower payment obligation.

   Inserted: (D) Adjustment.--Subject to paragraph (3), any person or affiliated group that the Chief Executive Officer has designated as a distributor under this subsection shall be given an adjustment of Tier assignment as follows:

   Inserted: (i) A distributor that but for this subsection would be assigned to Tier IV shall be deemed assigned to Tier V.

   Inserted: (ii) A distributor that but for this subsection would be assigned to Tier V shall be deemed assigned to Tier VI.

   Inserted: (iii) A distributor that but for this subsection would be assigned to Tier VI shall be deemed assigned to no Tier and shall have no obligation to make any payment to the Fund under this Act.

   Inserted: (E) Exclusive to inequity adjustment.--Any person or affiliated group designated by the Chief Executive Officer as a distributor under this subsection shall not be eligible for an inequity adjustment under subsection 204(d).

   Inserted: (3) Limitation on adjustments.--The aggregate total of distributor adjustments under this subsection in effect in any given year shall not exceed $50,000,000. If the aggregate total of distributors adjustments under this subsection would otherwise exceed $50,000,000, then each distributor's adjustment shall be reduced pro rata until the aggregate of all adjustments equals $50,000,000.

   Inserted: (4) Rehearing.--A defendant participant has a right to obtain a rehearing of the Chief Executive Officer's determination on an adjustment under this subsection under the procedures prescribed in subsection (i)(10).

   Inserted: SEC. 205. STEPDOWNS AND FUNDING HOLIDAYS.

   Inserted: (a) Stepdowns.--

   Inserted: (1) In general.--Subject to paragraph (2), the minimum aggregate annual funding obligation under section 204(h) shall be reduced by 10 percent of the initial minimum aggregate funding obligation at the end of the tenth, fifteenth, twentieth, and twenty-fifth years after the date of enactment of this Act. The reductions under this paragraph shall be applied on an equal pro rata basis to the funding obligations of all defendant participants, except with respect to defendant participants in Tier 1, Subtiers 2 and 3, and class action trusts.

   Inserted: (2) Limitation.--The Chief Executive Officer shall suspend, cancel, reduce, or delay any reduction under paragraph (1) if at any time the Chief Executive Officer finds, in accordance with subsection (c), that such action is necessary and appropriate to ensure that the assets of the Fund and expected future payments remain sufficient to satisfy the Fund's anticipated obligations.

   Inserted: (b) Funding Holidays.--

   Inserted: (1) In general.--If the Chief Executive Officer determines, at any time after 10 years following the date of enactment of this Act, that the assets of the Fund at the time of such determination and expected future payments, taking into consideration any reductions under subsection (a), are sufficient to satisfy the Fund's anticipated obligations without the need for all, or any portion of, that year's payment otherwise required under this subtitle, the Chief Executive Officer shall reduce or waive all or any part of the payments required from defendant participants for that year.

   Inserted: (2) Annual review.--The Chief Executive Officer shall undertake the review required by this subsection and make the necessary determination under paragraph (1) every year.

   Inserted: (3) Limitations on funding holidays.--Any reduction or waiver of the defendant participants' funding obligations shall--

   Inserted: (A) be made only to the extent the Chief Executive Officer determines that the Fund will still be able to satisfy all of its anticipated obligations; and

   Inserted: (B) be applied on an equal pro rata basis to the funding obligations of all defendant participants, except with respect to defendant participants in Subtiers 2 and 3 of Tier I and class action trusts, for that year.

   Inserted: (4) New information.--If at any time the Chief Executive Officer determines that a reduction or waiver under this section may cause the assets of the Fund and expected future payments to decrease to a level at which the Fund may not be able to satisfy all of its anticipated obligations, the Chief Executive Officer shall revoke all or any part of such reduction or waiver to the extent necessary to ensure that the Fund's obligations are met. Such revocations shall be applied on an equal pro rata basis to the funding obligations of all defendant participants, except defendant participants in Subtiers 2 and 3 of Tier I and class action trusts, for that year.

   Inserted: (c) Certification.--

   Inserted: (1) In general.--Before suspending, canceling, reducing, or delaying any reduction under subsection (a) or granting or revoking a reduction or waiver under subsection (b), the Chief Executive Officer shall certify that the requirements of this section are satisfied.

   Inserted: (2) Notice and comment.--Before making a final certification under this subsection, the Chief Executive Officer shall publish in a newspaper with a circulation of at least 500,000 and on the Internet a proposed certification and a statement of the basis therefor and provide in such notice for a public comment period of 30 days.

   Inserted: (3) Final certification.--

   Inserted: (A) In general.--The Chief Executive Officer shall publish a notice of the final certification in a newspaper with a circulation of at least 500,000 and on the Internet after consideration of all comments submitted under paragraph (2).

   Inserted: (B) Written notice.--Not later than 30 days after publishing any final certification under subparagraph (A), the Chief Executive Officer shall provide each defendant participant with written notice of that defendant's funding obligation for that year.

   Inserted: SEC. 206. ACCOUNTING TREATMENT.

   Inserted: Defendant participants payment obligations to the Fund shall be subject to discounting under the applicable accounting guidelines for generally accepted accounting purposes and statutory accounting purposes for each defendant participant. This section shall in no way reduce the amount of monetary payments to the Fund by defendant participants as required under section 202(a)(2).

   Inserted: Subtitle B--Asbestos Insurers Committee SEC. 210. DEFINITION.

   Inserted: In this subtitle, the term "captive insurance company" means a company--

   Inserted: (1) whose entire beneficial interest is owned on the date of enactment of this Act, directly or indirectly, by a defendant participant or by the ultimate parent or the affiliated group of a defendant participant;

   Inserted: (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

   Inserted: (3) that was incorporated or operating no later than December 31, 2003.

   Inserted: SEC. 211. ESTABLISHMENT OF ASBESTOS INSURERS COMMITTEE.

   Inserted: (a) Establishment.--There is established the Asbestos Insurers Committee (referred to in this subtitle as the "Committee") to carry out the duties described in section 212.

   Inserted: (b) Membership.--

   Inserted: (1) Appointment.--The Committee shall be composed of 5 members who shall be appointed by the President, by and with the advice and consent of the Senate.

   Inserted: (2) Qualifications.--

   Inserted: (A) Expertise.--Members of the Committee shall have sufficient expertise to fulfill their responsibilities under this subtitle.

   Inserted: (B) Conflict of interest.--

   Inserted: (i) In general.--No member of the Committee appointed under paragraph (1) may be an employee or immediate family member of an employee of an insurer participant. No member of the Committee shall be a shareholder of any insurer participant. No member of the Committee shall be a former officer or director, or a former employee or former shareholder of any insurer participant who was such an employee, shareholder, officer, or director at any time during the 2-year period ending on the date of the appointment, unless that is fully disclosed before consideration in the Senate of the nomination for appointment to the Committee.

   Inserted: (ii) Definition.--In clause (i), the term "shareholder" shall not include a broadly based mutual fund that includes the stocks of insurer participants as a portion of its overall holdings.

   Inserted: (C) Federal employment.--A member of the Committee may not be an officer or employee of the Federal Government, except by reason of membership on the Committee.

   Inserted: (3) Period of appointment.--Members shall be appointed for the life of the Committee.

   Inserted: (4) Vacancies.--Any vacancy in the Committee shall be filled in the same manner as the original appointment.

   Inserted: (5) Chairman.--The President shall select a Chairman from among the members of the Committee.

   Inserted: (c) Meetings.--

   Inserted: (1) Initial meeting.--Not later than 30 days after the date on which all members of the Committee have been appointed, the Committee shall hold its first meeting.

   Inserted: (2) Subsequent meetings.--The Committee shall meet at the call of the Chairman, as necessary to accomplish the duties under section 212.

   Inserted: (3) Quorum.--No business may be conducted or hearings held without the participation of a majority of the members of the Committee.

   Inserted: SEC. 212. DUTIES OF ASBESTOS INSURERS COMMITTEE.

   Inserted: (a) Determination of Insurer Payment Obligations.--

   Inserted: (1) In general.--

   Inserted: (A) Definitions.--For the purposes of this Act, the terms "insurer" and "insurer participant" shall, unless stated otherwise, include direct insurers and reinsurers, as well as any run-off entity established, in whole or in part, to review and pay asbestos claims.

   Inserted: (B) Procedures for determining insurer payments.--The Committee shall determine the amount that each insurer participant shall be required to pay into the Fund under the procedures described in this section. The Committee shall make this determination by first promulgating a rule establishing a methodology for allocation of payments among insurer participants and then applying such methodology to determine the individual payment for each insurer participant. The methodology may include 1 or more allocation formulas to be applied to all insurer participants or groups of similarly situated participants. The Committee's rule shall include a methodology for adjusting payments by insurer participants to make up, during the first 5 years of the life of the Fund and any subsequent years as provided in section 405(e) for any reduction in an insurer participant's annual allocated amount caused by the granting of a financial hardship or exceptional circumstance adjustment under this section, and any amount by which aggregate insurer payments fall below the level required under paragraph (3)(C) by reason of the failure or refusal of any insurer participant to make a required payment, or for any other reason that causes such payments to fall below the level required under paragraph (3)(C). The Committee shall conduct a thorough study (within the time limitations under this subparagraph) of the accuracy of the reserve allocation of each insurer participant, and may request information from the Securities and Exchange Committee or any State regulatory agency. Under this procedure, not later than 120 days after the initial meeting of the Committee, the Committee shall commence a rulemaking proceeding under section 213(a) to propose and adopt a methodology for allocating payments among insurer participants. In proposing an allocation methodology, the Committee may consult with such actuaries and other experts as it deems appropriate. After hearings and public comment on the proposed allocation methodology, the Committee shall as promptly as possible promulgate a final rule establishing such methodology. After promulgation of the final rule, the Committee shall determine the individual payment of each insurer participant under the procedures set forth in subsection (b).

   Inserted: (C) Scope.--Every insurer, reinsurer, and runoff entity with asbestos-related obligations in the United States shall be subject to the Committee's and Chief Executive Officer's authority under this Act, including allocation determinations, and shall be required to fulfill its payment obligation without regard as to whether it is licensed in the United States. Every insurer participant not licensed or domiciled in the United States shall, upon the first payment to the Fund, submit a written consent to the Committee's and Chief Executive Officer'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 Chief Executive Officer. Any insurer participant refusing to provide a written consent shall be subject to fines and penalties as provided in section 223.

   Inserted: (D) Issuers of finite risk policies.--

   Inserted: (i) In general.--The issuer of any policy of retrospective reinsurance purchased by an insurer participant or its affiliate after 1990 that provides for a risk or loss transfer to insure for asbestos losses and other losses (both known and unknown), including those policies commonly referred to as "finite risk", "aggregate stop loss", "aggregate excess of loss", or "loss portfolio transfer" policies, shall be obligated to make payments required under this Act directly to the Fund on behalf of the insurer participant who is the beneficiary of such policy, subject to the underlying retention and the limits of liability applicable to such policy.

   Inserted: (ii) Payments.--Payments to the Fund required under this Act shall be treated as loss payments for asbestos bodily injury (as if such payments were incurred as liabilities imposed in the tort system) and shall not be subject to exclusion under policies described under clause (i) as a liability with respect to tax or assessment. Within 90 days after the scheduled date to make an annual payment to the Fund, the insurer participant shall, at its discretion, direct the reinsurer issuing such policy to pay all or a portion of the annual payment directly to the Fund up to the full applicable limits of liability under the policy. The reinsurer issuing such policy shall be obligated to make such payments directly to the Fund and shall be subject to the enforcement provisions under section 223. The insurer participant shall remain obligated to make payment to the Fund of that portion of the annual payment not directed to the issuer of such reinsurance policy.

   Inserted: (2) Amount of payments.--

   Inserted: (A) Aggregate payment obligation.--The total payment required of all insurer participants over the life of the Fund shall be equal to $46,025,000,000, less any bankruptcy trust credits under section 222(d).

   Inserted: (B) Accounting standards.--In determining the payment obligations of participants that are not licensed or domiciled in the United States or that are runoff entities, the Committee shall use accounting standards required for United States licensed direct insurers.

   Inserted: (C) Captive insurance companies.--No payment to the Fund shall be required from a captive insurance company, unless and only to the extent a captive insurance company, on the date of enactment of this Act, has liability, directly or indirectly, for any asbestos claim of a person or persons other than and unaffiliated with its ultimate parent or affiliated group or pool in which the ultimate parent participates or participated, or unaffiliated with a person that was its ultimate parent or a member of its affiliated group or pool at the time the relevant insurance or reinsurance was issued by the captive insurance company.

   Inserted: (D) Several liability.--Unless otherwise provided under this Act, each insurer participant's obligation to make payments to the Fund is several. Unless otherwise provided under this Act, there is no joint liability, and the future insolvency by any insurer participant shall not affect the payment required of any other insurer participant.

   Inserted: (3) Payment of criteria.--

   Inserted: (A) Inclusion in insurer participant category.--

   Inserted: (i) In general.--Insurers that have paid, or been assessed by a legal judgment or settlement, at least $1,000,000 in defense and indemnity costs before the date of enactment of this Act in response to claims for compensation for asbestos injuries arising from a policy of liability insurance or contract of liability reinsurance or retrocessional reinsurance shall be insurer participants in the Fund. Other insurers shall be exempt from mandatory payments.

   Inserted: (ii) Inapplicability of section 202.--Since insurers may be subject in certain jurisdictions to direct action suits, and it is not the intent of this Act to impose upon an insurer, due to its operation as an insurer, payment obligations to the Fund in situations where the insurer is the subject of a direct action, no insurer subject to mandatory payments under this section shall also be liable for payments to the Fund as a defendant participant under section 202.

   Inserted: (B) Insurer participant allocation methodology.--

   Inserted: (i) In general.--The Committee shall establish the payment obligations of individual insurer participants to reflect, on an equitable basis, the relative tort system liability of the participating insurers in the absence of this Act, considering and weighting, as appropriate (but exclusive of workers' compensation), such factors as--

   Inserted: (I) historic premium for lines of insurance associated with asbestos exposure over relevant periods of time;

   Inserted: (II) recent loss experience for asbestos liability;

   Inserted: (III) amounts reserved for asbestos liability;

   Inserted: (IV) the likely cost to each insurer participant of its future liabilities under applicable insurance policies; and

   Inserted: (V) any other factor the Committee may determine is relevant and appropriate.

   Inserted: (ii) Determination of reserves.--The Committee may establish procedures and standards for determination of the asbestos reserves of insurer participants. The reserves of a United States licensed reinsurer that is wholly owned by, or under common control of, a United States licensed direct insurer shall be included as part of the direct insurer's reserves when the reinsurer's financial results are included as part of the direct insurer's United States operations, as reflected in footnote 33 of its filings with the National Association of Insurance Commissioners or in published financial statements prepared in accordance with generally accepted accounting principles.

   Inserted: (C) Payment schedule.--The aggregate annual amount of payments by insurer participants over the life of the Fund shall be as follows:

   Inserted: (i) For years 1 and 2, $2,700,000,000 annually.

   Inserted: (ii) For years 3 through 5, $5,075,000,000 annually.

   Inserted: (iii) For years 6 through 27, $1,147,000,000 annually.

   Inserted: (iv) For year 28, $166,000,000.

   Inserted: (D) Certain runoff entities.--A runoff entity shall include any direct insurer or reinsurer whose asbestos liability reserves have been transferred, directly or indirectly, to the runoff entity and on whose behalf the runoff entity handles or adjusts and, where appropriate, pays asbestos claims.

   Inserted: (E) Financial hardship and exceptional circumstance adjustments.--

   Inserted: (i) In general.--Under the procedures established in subsection (b), an insurer participant may seek adjustment of the amount of its payments based on exceptional circumstances or severe financial hardship.

   Inserted: (ii) Financial adjustments.--An insurer participant may qualify for an adjustment based on severe financial hardship by demonstrating that payment of the amounts required by the Committee's methodology would jeopardize the solvency of such participant.

   Inserted: (iii) Exceptional circumstance adjustment.--An insurer participant may qualify for an adjustment based on exceptional circumstances by demonstrating--

   Inserted: (I) that the amount of its payments under the Committee's allocation methodology is exceptionally inequitable when measured against the amount of the likely cost to the participant of its future liability in the tort system in the absence of the Fund;

   Inserted: (II) an offset credit as described in subparagraphs (A) and (C) of subsection (b)(4); or

   Inserted: (III) other exceptional circumstances.

   Inserted: The Committee may determine whether to grant an adjustment and the size of any such adjustment, but except as provided under paragraph (1)(B), subsection (f)(3), and section 405(e), any such adjustment shall not affect the aggregate payment obligations of insurer participants specified in paragraph (2)(A) and subparagraph (C) of this paragraph.

   Inserted: (iv) Time period of adjustment.--Except for adjustments for offset credits, adjustments granted under this subsection shall have a term not to exceed 3 years. An insurer participant may renew its adjustment by demonstrating to the Chief Executive Officer that it remains justified.

   Inserted: (F) Funding holidays.--

   Inserted: (i) In general.--If the Chief Executive Officer determines, at any time after 10 years following the date of enactment of this Act, that the assets of the Fund at the time of such determination and expected future payments are sufficient to satisfy the Fund's anticipated obligations without the need for all, or any portion of, that year's payment otherwise required under this subtitle, the Chief Executive Officer shall reduce or waive all or any part of the payments required from insurer participants for that year.

   Inserted: (ii) Annual review.--The Chief Executive Officer shall undertake the review required by this subsection and make the necessary determination under clause (i) every year.

   Inserted: (iii) Limitations of funding holidays.--Any reduction or waiver of the insurer participants' funding obligations shall--

   Inserted: (I) be made only to the extent the Chief Executive Officer determines that the Fund will still be able to satisfy all of its anticipated obligations; and

   Inserted: (II) be applied on an equal pro rata basis to the funding obligations of all insurer participants for that year.

   Inserted: (iv) New information.--If at any time the Chief Executive Officer determines that a reduction or waiver under this section may cause the assets of the Fund and expected future payments to decrease to a level at which the Fund may not be able to satisfy all of its anticipated obligations, the Chief Executive Officer shall revoke all or any part of such reduction or waiver to the extent necessary to ensure that the Fund's obligations are met. Such revocations shall be applied on an equal pro rata basis to the funding obligations of all insurer participants for that year.

   Inserted: (b) Procedure for Notifying Insurer Participants of Individual Payment Obligations.--

   Inserted: (1) Notice to participants.--Not later than 30 days after promulgation of the final rule establishing an allocation methodology under subsection (a)(1), the Committee shall--

   Inserted: (A) directly notify all reasonably identifiable insurer participants of the requirement to submit information necessary to calculate the amount of any required payment to the Fund under the allocation methodology; and

   Inserted: (B) publish in a newspaper with a circulation of at least 500,000 and on the Internet a notice--

   Inserted: (i) requiring any person who may be an insurer participant (as determined by criteria outlined in the notice) to submit such information; and

   Inserted: (ii) that includes a list of all insurer participants notified by the Committee under subparagraph (A), and provides for 30 days for the submission of comments or information regarding the completeness and accuracy of the list of identified insurer participants.

   Inserted: (2) Response required by individual insurer participants.--

   Inserted: (A) In general.--Any person who receives notice under paragraph (1)(A), and any other person meeting the criteria specified in the notice published under paragraph (1)(B), shall respond by providing the Committee with all the information requested in the notice under a schedule or by a date established by the Committee.

   Inserted: (B) Certification.--The response submitted under subparagraph (A) shall be signed by a responsible corporate officer, general partner, proprietor, or individual of similar authority, who shall certify under penalty of law the completeness and accuracy of the information submitted.

   Inserted: (3) Notice to insurer participants of initial payment determination.--

   Inserted: (A) In general.--

   Inserted: (i) Notice to insurers.--Not later than 120 days after receipt of the information required by paragraph (2), the Committee shall send each insurer participant a notice of initial determination requiring payments to the Fund, which shall be based on the information received from the participant in response to the Committee's request for information. An insurer participant's payments shall be payable over the schedule established in subsection (a)(3)(C), in annual amounts proportionate to the aggregate annual amount of payments for all insurer participants for the applicable year.

   Inserted: (ii) Public notice.--Not later than 7 days after sending the notification of initial determination to insurer participants, the Committee shall publish in a newspaper with a circulation of at least 500,000 and on the Internet a notice listing the insurer participants that have been sent such notification, and the initial determination on the payment obligation of each identified participant.

   Inserted: (B) No response; incomplete response.--If no response is received from an insurer participant, or if the response is incomplete, the initial determination requiring a payment from the insurer participant shall be based on the best information available to the Committee.

   Inserted: (4) Committee review, revision, and finalization of initial payment determinations.--

   Inserted: (A) Comments from insurer participants.--Not later than 30 days after receiving a notice of initial determination from the Committee, an insurer participant may provide the Committee with additional information to support adjustments to the required payments to reflect severe financial hardship or exceptional circumstances, including the provision of an offset credit for an insurer participant for the amount of any asbestos-related payments it made or was legally obligated to make, including payments released from an escrow, as the result of a bankruptcy judicially confirmed after May 22, 2003, but before the date of enactment of this Act.

   Inserted: (B) Additional participants.--If, before the final determination of the Committee, the Committee receives information that an additional person may qualify as an insurer participant, the Committee shall require such person to submit information necessary to determine whether payments from that person should be required, in accordance with the requirements of this subsection.

   Inserted: (C) Revision procedures.--The Committee shall adopt procedures for revising initial payments based on information received under subparagraphs (A) and (B), including a provision requiring an offset credit for an insurer participant for the amount of any asbestos-related payments it made or was legally obligated to make, including payments released from an escrow, as the result of a bankruptcy confirmed after May 22, 2003, but before the date of enactment of this Act.

   Inserted: (5) Examinations and subpoenas.--

   Inserted: (A) Examinations.--The Committee may conduct examinations of the books and records of insurer participants to determine the completeness and accuracy of information submitted, or required to be submitted, to the Committee for purposes of determining participant payments.

   Inserted: (B) Subpoenas.--The Committee may request the Attorney General to subpoena persons to compel testimony, records, and other information relevant to its responsibilities under this section. The Attorney General may enforce such subpoena in appropriate proceedings in the United States district court for the district in which the person to whom the subpoena was addressed resides, was served, or transacts business.

   Inserted: (6) Escrow payments.--Without regard to an insurer participant's payment obligation under this section, any escrow or similar account established before the date of enactment of this Act by an insurer participant in connection with an asbestos trust fund that has not been judicially confirmed by final order by the date of enactment of this Act shall be the property of the insurer participant and returned to that insurer participant.

   Inserted: (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 Committee shall send each insurer participant a notice of final determination.

   Inserted: (c) Insurer Participants Voluntary Allocation Agreement.--

   Inserted: (1) In general.--Not later than 30 days after the Committee proposes its rule establishing an allocation methodology under subsection (a)(1), direct insurer participants licensed or domiciled in the United States, other direct insurer participants, reinsurer participants licensed or domiciled in the United States, or other reinsurer participants, may submit an allocation agreement, approved by all of the participants in the applicable group, to the Committee.

   Inserted: (2) Allocation agreement.--To the extent the participants in any such applicable group voluntarily agree upon an allocation arrangement, any such allocation agreement shall only govern the allocation of payments within that group and shall not determine the aggregate amount due from that group.

   Inserted: (3) Certification.--The Committee shall determine whether an allocation agreement submitted under subparagraph (A) meets the requirements of this subtitle and, if so, shall certify the agreement as establishing the allocation methodology governing the individual payment obligations of the participants who are parties to the agreement. The authority of the Committee under this subtitle shall, with respect to participants who are parties to a certified allocation agreement, terminate on the day after the Committee certifies such agreement. Under subsection (f), the Chief Executive Officer shall assume responsibility, if necessary, for calculating the individual payment obligations of participants who are parties to the certified agreement.

   Inserted: (d) Committee Report.--

   Inserted: (1) Recipients.--Until the work of the Committee has been completed and the Committee terminated, the Committee shall submit an annual report, containing the information described under paragraph (2), to--

   Inserted: (A) the Committee on the Judiciary of the Senate;

   Inserted: (B) the Committee on the Judiciary of the House of Representatives; and

   Inserted: (C) the Chief Executive Officer.

   Inserted: (2) Contents.--The report under paragraph (1) shall state the amount that each insurer participant is required to pay to the Fund, including the payment schedule for such payments.

   Inserted: (e) Interim Payments.--

   Inserted: (1) Amount of interim payment.--Within 90 days after the date of enactment of this Act, insurer participants shall make an aggregate payment to the Fund not to exceed 50 percent of the aggregate funding obligation specified under subsection (a)(3)(C) for year 1.

   Inserted: (2) Reserve information.--Within 30 days after the date of enactment of this Act, each insurer participant shall submit to the Chief Executive Officer a certified statement of its net held reserves for asbestos liabilities as of December 31, 2004.

   Inserted: (3) Allocation of interim payment.--The Chief Executive Officer shall allocate the interim payment among the individual insurer participants on an equitable basis using the net held asbestos reserve information provided by insurer participants under subsection (a)(3)(B). Within 60 days after the date of enactment of this Act, the Chief Executive Officer shall publish in a newspaper with a circulation of at least 500,000 and on the Internet the name of each insurer participant, and the amount of the insurer participant's allocated share of the interim payment. The use of net held asbestos reserves as the basis to determine an interim allocation shall not be binding on the Chief Executive Officer in the determination of an appropriate final allocation methodology under this section. All payments required under this paragraph shall be credited against the participant's ultimate payment obligation to the Fund established by the Committee. 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 Chief Executive Officer. If the ultimate payment exceeds the interim payment, the participant shall pay interest on the amount of the underpayment at the same rate. Any participant may seek an exemption from or reduction in any payment required under this subsection under the financial hardship and exceptional circumstance standards established under subsection (a)(3)(E).

   Inserted: (4) Appeal of interim payment decisions.--A decision by the Chief Executive Officer 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.

   Inserted: (f) Transfer of Authority From the Committee to the Chief Executive Officer.--

   Inserted: (1) In general.--Upon termination of the Committee under section 215, the Chief Executive Officer shall assume all the responsibilities and authority of the Committee, except that the Chief Executive Officer shall not have the power to modify the allocation methodology established by the Committee or by certified agreement or to promulgate a rule establishing any such methodology.

   Inserted: (2) Financial hardship and exceptional circumstance adjustments.--Upon termination of the Committee under section 215, the Chief Executive Officer shall have the authority, upon application by any insurer participant, to make adjustments to annual payments upon the same grounds as provided in subsection (a)(3)(D). Adjustments granted under this subsection shall have a term not to exceed 3 years. An insurer participant may renew its adjustment by demonstrating that it remains justified. Upon the grant of any adjustment, the Chief Executive Officer shall increase the payments, consistent with subsection (a)(1)(B), required of all other insurer participants so that there is no reduction in the aggregate payment required of all insurer participants for the applicable years. The increase in an insurer participant's required payment shall be in proportion to such participant's share of the aggregate payment obligation of all insurer participants.

   Inserted: (3) Credits for shortfall assessments.--If insurer participants are required during the first 5 years of the life of the Fund to make up any shortfall in required insurer payments under subsection (a)(1)(B), then, beginning in year 6, the Chief Executive Officer shall grant each insurer participant a credit against its annual required payments during the applicable years that in the aggregate equal the amount of shortfall assessments paid by such insurer participant during the first 5 years of the life of the Fund. The credit shall be prorated over the same number of years as the number of years during which the insurer participant paid a shortfall assessment. Insurer participants which did not pay all required payments to the Fund during the first 5 years of the life of the Fund shall not be eligible for a credit. The Chief Executive Officer shall not grant a credit for shortfall assessments imposed under section 405(e).

   Inserted: (4) Financial security requirements.--Whenever an insurer participant's A.M. Best's claims payment rating or Standard and Poor's financial strength rating falls below A-, and until such time as either the insurer participant's A.M. Best's Rating or Standard and Poor's rating is equal to or greater than A-, the Chief Executive Officer shall have the authority to require that the participating insurer either--

   Inserted: (A) pay the present value of its remaining Fund payments at a discount rate determined by the Chief Executive Officer; or

   Inserted: (B) provide an evergreen letter of credit or financial guarantee for future payments issued by an institution with an A.M. Best's claims payment rating or Standard & Poor's financial strength rating of at least A+.

   Inserted: (g) Accounting Treatment.--Insurer participants' payment obligations to the Fund shall be subject to discounting under the applicable accounting guidelines for generally accepted accounting purposes and statutory accounting purposes for each insurer participant. This subsection shall in no way reduce the amount of monetary payments to the Fund by insurer participants as required under subsection (a).

   Inserted: (h) Judicial Review.--The Committee's rule establishing an allocation methodology, its final determinations of payment obligations and other final action shall be judicially reviewable as provided in title III.

   Inserted: SEC. 213. POWERS OF ASBESTOS INSURERS COMMITTEE.

   Inserted: (a) Rulemaking.--The Committee shall promulgate such rules and regulations as necessary to implement its authority under this Act, including regulations governing an allocation methodology. Such rules and regulations shall be promulgated after providing interested parties with the opportunity for notice and comment.

   Inserted: (b) Hearings.--The Committee may hold such hearings, sit and act at such times and places, take such testimony, and receive such evidence as the Committee considers advisable to carry out this Act. The Committee shall also hold a hearing on any proposed regulation establishing an allocation methodology, before the Committee's adoption of a final regulation.

   Inserted: (c) Information From Federal and State Agencies.--The Committee may secure directly from any Federal or State department or agency such information as the Committee considers necessary to carry out this Act. Upon request of the Chairman of the Committee, the head of such department or agency shall furnish such information to the Committee.

   Inserted: (d) Postal Services.--The Committee may use the United States mails in the same manner and under the same conditions as other departments and agencies of the Federal Government.

   Inserted: (e) Gifts.--The Committee may not accept, use, or dispose of gifts or donations of services or property.

   Inserted: (f) Expert Advice.--In carrying out its responsibilities, the Committee may enter into such contracts and agreements as the Committee determines necessary to obtain expert advice and analysis.

   Inserted: SEC. 214. PERSONNEL MATTERS.

   Inserted: (a) Compensation of Members.--Each member of the Committee shall be compensated at a rate equal to the daily equivalent of the annual rate of basic pay prescribed for level IV of the Executive Schedule under section 5315 of title 5, United States Code, for each day (including travel time) during which such member is engaged in the performance of the duties of the Committee.

   Inserted: (b) Travel Expenses.--The members of the Committee shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, while away from their homes or regular places of business in the performance of services for the Committee.

   Inserted: (c) Staff.--

   Inserted: (1) In general.--The Chairman of the Committee 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 Committee to perform its duties. The employment of an executive director shall be subject to confirmation by the Committee.

   Inserted: (2) Compensation.--The Chairman of the Committee may fix the compensation of the executive director and other personnel without regard to chapter 51 and subchapter III of chapter 53 of title 5, United States Code, relating to classification of positions and General Schedule pay rates, except that the rate of pay for the executive director and other personnel may not exceed the rate payable for level V of the Executive Schedule under section 5316 of such title.

   Inserted: (d) Detail of Government Employees.--Any Federal Government employee may be detailed to the Committee without reimbursement, and such detail shall be without interruption or loss of civil service status or privilege.

   Inserted: (e) Procurement of Temporary and Intermittent Services.--The Chairman of the Committee may procure temporary and intermittent services under section 3109(b) of title 5, United States Code, at rates for individuals which do not exceed the daily equivalent of the annual rate of basic pay prescribed for level V of the Executive Schedule under section 5316 of such title.

   Inserted: SEC. 215. TERMINATION OF ASBESTOS INSURERS COMMITTEE.

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

   Inserted: SEC. 216. EXPENSES AND COSTS OF COMMITTEE.

   Inserted: All expenses of the Committee shall be paid from the Fund.

   Inserted: Subtitle C--Asbestos Injury Claims Resolution Fund SEC. 221. ESTABLISHMENT OF ASBESTOS INJURY CLAIMS RESOLUTION FUND.

   Inserted: (a) Establishment.--There is established in the Office of Asbestos Disease Compensation the Asbestos Injury Claims Resolution Fund, which shall be available to pay--

   Inserted: (1) claims for awards for an eligible disease or condition determined under title I;

   Inserted: (2) claims for reimbursement for medical monitoring determined under title I;

   Inserted: (3) principal and interest on borrowings under subsection (b);

   Inserted: (4) the remaining obligations to the asbestos trust of a debtor and the class action trust under section 405(f)(8); and

   Inserted: (5) administrative expenses to carry out the provisions of this Act.

   Inserted: (b) Borrowing Authority.--

   Inserted: (1) In general.--The Chief Executive Officer is authorized to borrow from time to time amounts as set forth in this subsection, for purposes of enhancing liquidity available to the Fund for carrying out the obligations of the Fund under this Act. The Chief Executive Officer 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.

   Inserted: (2) Federal financing bank.--In addition to the general authority in paragraph (1), the Chief Executive Officer may borrow from the Federal Financing Bank in accordance with section 6 of the Federal Financing Bank Act of 1973 (12 U.S.C. 2285), as needed for performance of the Chief Executive Officer's duties under this Act for the first 5 years.

   Inserted: (3) Borrowing capacity.--The maximum amount that may be borrowed under this subsection at any given time is the amount that, taking into account all payment obligations related to all previous amounts borrowed in accordance with this subsection and all committed obligations of the Fund at the time of borrowing, can be repaid in full (with interest) in a timely fashion from--

   Inserted: (A) the available assets of the Fund as of the time of borrowing; and

   Inserted: (B) all amounts expected to be paid by participants during the subsequent 10 years.

   Inserted: (4) Repayment obligations.--Repayment of monies borrowed by the Chief Executive Officer under this subsection shall be repaid in full by the Fund contributors and is limited solely to amounts available, present or future, in the Fund.

   Inserted: (c) Lockbox for Severe Asbestos-Related Injury Claimants.--

   Inserted: (1) In general.--Within the Fund, the Chief Executive Officer shall establish the following accounts:

   Inserted: (A) A Mesothelioma Account, which shall be used solely to make payments to claimants eligible for an award under the criteria of Level IX.

   Inserted: (B) A Lung Cancer Account, which shall be used solely to make payments to claimants eligible for an award under the criteria of Level VIII.

   Inserted: (C) A Severe Asbestosis Account, which shall be used solely to make payments to claimants eligible for an award under the criteria of Level V.

   Inserted: (D) A Moderate Asbestosis Account, which shall be used solely to make payments to claimants eligible for an award under the criteria of Level IV.

   Inserted: (2) Allocation.--The Chief Executive Officer shall allocate to each of the 4 accounts established under paragraph (1) a portion of payments made to the Fund adequate to compensate all anticipated claimants for each account. Within 60 days after the date of enactment of this Act, and periodically during the life of the Fund, the Chief Executive Officer shall determine an appropriate amount to allocate to each account after consulting appropriate epidemiological and statistical studies.

   Inserted: (d) Audit Authority.--

   Inserted: (1) In general.--For the purpose of ascertaining the correctness of any information provided or payments made to the Fund, or determining whether a person who has not made a payment to the Fund was required to do so, or determining the liability of any person for a payment to the Fund, or collecting any such liability, or inquiring into any offense connected with the administration or enforcement of this title, the Chief Executive Officer is authorized--

   Inserted: (A) to examine any books, papers, records, or other data which may be relevant or material to such inquiry;

   Inserted: (B) to summon the person liable for a payment under this title, or officer or employee of such person, or any person having possession, custody, or care of books of account containing entries relating to the business of the person liable or any other person the Chief Executive Officer may determine proper, to appear before the Chief Executive Officer at a time and place named in the summons and to produce such books, papers, records, or other data, and to give such testimony, under oath, as may be relevant or material to such inquiry; and

   Inserted: (C) to take such testimony of the person concerned, under oath, as may be relevant or material to such inquiry.

   Inserted: (2) False, fraudulent, or fictitious statements or practices.--If the Chief Executive Officer determines that materially false, fraudulent, or fictitious statements or practices have been submitted or engaged in by persons submitting information to the Chief Executive Officer or to the Asbestos Insurers Committee or any other person who provides evidence in support of such submissions for purposes of determining payment obligations under this Act, the Chief Executive Officer may impose a civil penalty not to exceed $10,000 on any person found to have submitted or engaged in a materially false, fraudulent, or fictitious statement or practice under this Act. The Chief Executive Officer shall promulgate appropriate regulations to implement this paragraph.

   Inserted: (e) Identity of Certain Defendant Participants; Transparency.--

   Inserted: (1) Submission of information.--Not later than 60 days after the date of enactment of this Act, any person who, acting in good faith, has knowledge that such person or such person's affiliated group has prior asbestos expenditures of $1,000,000 or greater, shall submit to the Chief Executive Officer--

   Inserted: (A) either the name of such person, or such person's ultimate parent; and

   Inserted: (B) the likely tier to which such person or affiliated group may be assigned under this Act.

   Inserted: (2) Publication.--Not later than 20 days after the end of the 60-day period referred to in paragraph (1), the Chief Executive Officer shall publish in a newspaper with a circulation of at least 500,000 and on the Internet a list of submissions required by this subsection, including the name of such persons or ultimate parents and the likely tier to which such persons or affiliated groups may be assigned. After publication of such list, any person who, acting in good faith, has knowledge that any other person has prior asbestos expenditures of $1,000,000 or greater may submit to the Chief Executive Officer information on the identity of that person and the person's prior asbestos expenditures.

   Inserted: (f) No Private Right of Action.--Except as provided in sections 203(b)(2)(D)(ii) and 204(f)(3), there shall be no private right of action under any Federal or State law against any participant based on a claim of compliance or noncompliance with this Act or the involvement of any participant in the enactment of this Act.

   Inserted: SEC. 222. MANAGEMENT OF THE FUND.

   Inserted: (a) In General.--Amounts in the Fund shall be held for the exclusive purpose of providing benefits to asbestos claimants and their beneficiaries and to otherwise defray the reasonable expenses of administering the Fund.

   Inserted: (b) Investments.--

   Inserted: (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.

   Inserted: (2) Strategy.--The Chief Executive Officer 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 Chief Executive Officer shall consider, to the extent relevant to an investment decision or action--

   Inserted: (A) the size of the Fund;

   Inserted: (B) the nature and estimated duration of the Fund;

   Inserted: (C) the liquidity and distribution requirements of the Fund;

   Inserted: (D) general economic conditions at the time of the investment;

   Inserted: (E) the possible effect of inflation or deflation on Fund assets;

   Inserted: (F) the role that each investment or course of action plays with respect to the overall assets of the Fund;

   Inserted: (G) the expected amount to be earned (including both income and appreciation of capital) through investment of amounts in the Fund; and

   Inserted: (H) the needs of asbestos claimants for current and future distributions authorized under this Act.

   Inserted: (c) Bankruptcy Trust Guarantee.--

   Inserted: (1) In general.--Notwithstanding any other provision of this Act, the Chief Executive Officer shall have the authority to impose a pro rata surcharge on all participants under this subsection to ensure the liquidity of the Fund, if--

   Inserted: (A) the declared assets from 1 or more bankruptcy trusts established under a plan of reorganization confirmed and substantially consummated on or before July 31, 2004, are not available to the Fund because a final judgment that has been entered by a court and is no longer subject to any appeal or review has enjoined the transfer of assets required under section 524(j)(2) of title 11, United States Code (as amended by section 402(f) of this Act); and

   Inserted: (B) borrowing is insufficient to assure the Fund's ability to meet its obligations under this Act such that the required borrowed amount is likely to increase the risk of termination of this Act under section 405 based on reasonable claims projections.

   Inserted: (2) Allocation.--Any surcharge imposed under this subsection shall be imposed over a period of 5 years on a pro rata basis upon all participants, in accordance with the relative aggregate funding obligations under sections 202(a)(2) and 212(a)(2)(A).

   Inserted: (3) Certification.--

   Inserted: (A) In general.--Before imposing a surcharge under this subsection, the Chief Executive Officer shall publish in a newspaper with a circulation of at least 500,000 and on the Internet a notice and provide in such notice for a public comment period of 30 days.

   Inserted: (B) Contents of notice.--The notice required under subparagraph (A) shall include--

   Inserted: (i) information explaining the circumstances that make a surcharge necessary and a certification that the requirements under paragraph (1) are met;

   Inserted: (ii) the amount of the declared assets from any trust established under a plan of reorganization confirmed and substantially consummated on or before July 31, 2004, that was not made, or is no longer, available to the Fund;

   Inserted: (iii) the total aggregate amount of the necessary surcharge; and

   Inserted: (iv) the surcharge amount for each tier and subtier of defendant participants and for each insurer participant.

   Inserted: (C) Final notice.--The Chief Executive Officer shall publish in a newspaper with a circulation of at least 500,000 and on the Internet a final notice and provide each participant with written notice of that participant's schedule of payments under this subsection. In no event shall any required surcharge under this subsection be due before 60 days after the Chief Executive Officer publishes the final notice in a newspaper with a circulation of at least 500,000 and on the Internet and provides each participant with written notice of its schedule of payments.

   Inserted: (4) Maximum amount.--In no event shall the total aggregate surcharge imposed by the Chief Executive Officer exceed the lesser of--

   Inserted: (A) the total aggregate amount of the declared assets of the trusts established under a plan of reorganization confirmed and substantially consummated prior to July 31, 2004, that are no longer available to the Fund; or

   Inserted: (B) $4,000,000,000.

   Inserted: (5) Declared assets.--

   Inserted: (A) In general.--In this subsection, the term "declared assets" means--

   Inserted: (i) the amount of assets transferred by any trust established under a plan of reorganization confirmed and substantially consummated on or before July 31, 2004, to the Fund that is required to be returned to that trust under the final judgment described in paragraph (1)(A); or

   Inserted: (ii) if no assets were transferred by the trust to the Fund, the amount of assets the Chief Executive Officer determines would have been available for transfer to the Fund from that trust under section 402(f).

   Inserted: (B) Determination.--In making a determination under subparagraph (A)(ii), the Chief Executive Officer may rely on any information reasonably available, and may request, and use subpoena authority of the Chief Executive Officer if necessary to obtain, relevant information from any such trust or its trustees.

   Inserted: (d) Bankruptcy Trust Credits.--

   Inserted: (1) In general.--Notwithstanding any other provision of this Act, but subject to paragraph (2) of this subsection, the Chief Executive Officer shall provide a credit toward the aggregate payment obligations under sections 202(a)(2) and 212(a)(2)(A) for assets received by the Fund from any bankruptcy trust established under a plan of reorganization confirmed and substantially consummated after July 31, 2004.

   Inserted: (2) Allocation of credits.--The Chief Executive Officer shall allocate, for each such bankruptcy trust, the credits for such assets between the defendant and insurer aggregate payment obligations as follows:

   Inserted: (A) Defendant participants.--The aggregate amount that all persons other than insurers contributing to the bankruptcy trust would have been required to pay as Tier I defendants under section 203(b) if the plan of reorganization under which the bankruptcy trust was established had not been confirmed and substantially consummated and the proceeding under chapter 11 of title 11, United States Code, that resulted in the establishment of the bankruptcy trust had remained pending as of the date of enactment of this Act.

   Inserted: (B) Insurer participants.--The aggregate amount of all credits to which insurers are entitled to under section 202(c)(4)(A) of the Act.

   Inserted: SEC. 223. ENFORCEMENT OF PAYMENT OBLIGATIONS.

   Inserted: (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 Chief Executive Officer, after demand and a 30-day opportunity to cure the default, there shall be a lien in favor of the United States for the amount of the delinquent payment (including interest) upon all property and rights to property, whether real or personal, belonging to such participant.

   Inserted: (b) Bankruptcy.--In the case of a bankruptcy or insolvency proceeding, the lien imposed under subsection (a) shall be treated in the same manner as a lien for taxes due and owing to the United States for purposes of the provisions of title 11, United States Code, or section 3713(a) of title 31, United States Code. The United States Bankruptcy Court shall have jurisdiction over any issue or controversy regarding lien priority and lien perfection arising in a bankruptcy case due to a lien imposed under subsection (a).

   Inserted: (c) Civil Action.--

   Inserted: (1) In general.--In any case in which there has been a refusal or failure to pay any liability imposed under this Act, the Chief Executive Officer may bring a civil action in any appropriate United States District Court, or any other appropriate lawsuit or proceeding outside of the United States--

   Inserted: (A) to enforce the liability and any lien of the United States imposed under this section;

   Inserted: (B) to subject any property of the participant, including any property in which the participant has any right, title, or interest to the payment of such liability; or

   Inserted: (C) for temporary, preliminary, or permanent relief.

   Inserted: (2) Additional penalties.--In any action under paragraph (1) in which the refusal or failure to pay was willful, the Chief Executive Officer may seek recovery-- (A) of punitive damages; (B) of the costs of any civil action under this subsection, including reasonable fees incurred for collection, expert witnesses, and attorney's fees; and

   Inserted: (C) in addition to any other penalty, of a fine equal to the total amount of the liability that has not been collected.

   Inserted: (d) Enforcement Authority as to Insurer Participants.--

   Inserted: (1) In general.--In addition to or in lieu of the enforcement remedies described in subsection (c), the Chief Executive Officer may seek to recover amounts in satisfaction of a payment not timely paid by an insurer participant under the procedures under this subsection.

   Inserted: (2) Subrogation.--To the extent required to establish personal jurisdiction over nonpaying insurer participants, the Chief Executive Officer shall be deemed to be subrogated to the contractual rights of participants to seek recovery from nonpaying insuring participants that are domiciled outside the United States under the policies of liability insurance or contracts of liability reinsurance or retrocessional reinsurance applicable to asbestos claims, and the Chief Executive Officer may bring an action or an arbitration against the nonpaying insurer participants under the provisions of such policies and contracts, provided that--

   Inserted: (A) any amounts collected under this subsection shall not increase the amount of deemed erosion allocated to any policy or contract under section 404, or otherwise reduce coverage available to a participant; and

   Inserted: (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.

   Inserted: (3) Recoverability of contribution.--For purposes of this subsection--

   Inserted: (A) all contributions to the Fund required of a participant shall be deemed to be sums legally required to be paid for bodily injury resulting from exposure to asbestos;

   Inserted: (B) all contributions to the Fund required of any participant shall be deemed to be a single loss arising from a single occurrence under each contract to which the Chief Executive Officer is subrogated; and

   Inserted: (C) with respect to reinsurance contracts, all contributions to the Fund required of a participant shall be deemed to be payments to a single claimant for a single loss.

   Inserted: (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.

   Inserted: (5) Cooperation.--Insureds and cedents shall cooperate with the Chief Executive Officer's reasonable requests for assistance in any such proceeding. The positions taken or statements made by the Chief Executive Officer in any such proceeding shall not be binding on or attributed to the insureds or cedents in any other proceeding. The outcome of such a proceeding shall not have a preclusive effect on the insureds or cedents in any other proceeding and shall not be admissible against any subrogee under this section. The Chief Executive Officer shall have the authority to settle or compromise any claims against a nonpaying insurer participant under this subsection.

   Inserted: (e) Bar on United States Business.--If any direct insurer or reinsurer refuses to pay any contribution required by this Act, then, in addition to any other penalties imposed by this Act, the Chief Executive Officer shall issue an order barring such entity and its affiliates from insuring risks located within the United States or otherwise doing business within the United States unless and until it complies. If any direct insurer or reinsurer refuses to furnish any information requested by the Chief Executive Officer, the Chief Executive Officer may issue an order barring such entity and its affiliates from insuring risks located within the United States or otherwise doing business within the United States unless and until it complies. Insurer participants or their affiliates seeking to obtain a license from any State to write any type of insurance shall be barred from obtaining any such license until payment of all contributions required as of the date of license application.

   Inserted: (f) Credit for Reinsurance.--If the Chief Executive Officer determines that an insurer participant that is a reinsurer is in default in paying any required contribution or otherwise not in compliance with this Act, the Chief Executive Officer may issue an order barring any direct insurer participant from receiving credit for reinsurance purchased from the defaulting reinsurer after the date of the Chief Executive Officer's determination of default. Any State law governing credit for reinsurance to the contrary is preempted.

   Inserted: (g) Defense Limitation.--In any proceeding under this section, the participant shall be barred from bringing any challenge to any determination of the Chief Executive Officer or the Asbestos Insurers Committee 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.

   Inserted: (h) Deposit of Funds.--

   Inserted: (1) In general.--Any funds collected under subsection (c)(2) (A) or (C) shall be--

   Inserted: (A) deposited in the Fund; and

   Inserted: (B) used only to pay--

   Inserted: (i) claims for awards for an eligible disease or condition determined under title I; or

   Inserted: (ii) claims for reimbursement for medical monitoring determined under title I.

   Inserted: (2) No effect on other liabilities.--The imposition of a fine under subsection (c)(2)(C) shall have no effect on--

   Inserted: (A) the assessment of contributions under subtitles A and B; or

   Inserted: (B) any other provision of this Act.

   Inserted: (i) Property of the Estate.--Section 541(b) of title 11, United States Code, is amended--

   Inserted: (1) in paragraph (4)(B)(ii), by striking "or" at the end;

   Inserted: (2) in paragraph (5), by striking "prohibition." and inserting "prohibition; or"; and

   Inserted: (3) by inserting after paragraph (5) and before the last undesignated sentence the following:

   Inserted: "(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 2006.".

   Inserted: (j) Proposed Transactions.--

   Inserted: (1) Notice of proposed transaction.--Any participant that has taken any action to effectuate a proposed transaction or a proposed series of transactions under which a significant portion of such participant's assets, properties or business will, if consummated as proposed, be, directly or indirectly, transferred by any means (including, without limitation, by sale, dividend, contribution to a subsidiary or split-off) to 1 or more persons other than the participant shall provide written notice to the Chief Executive Officer of such proposed transaction (or proposed series of transactions). Upon the request of such participant, and for so long as the participant shall not publicly disclose the transaction or series of transactions and the Chief Executive Officer shall not commence any action under paragraph (6), the Chief Executive Officer shall treat any such notice as confidential commercial information under section 552 of title 5, United States Code.

   Inserted: (2) Timing of notice and related actions.--

   Inserted: (A) In general.--Any notice that a participant is required to give under paragraph (1) shall be given not later than 30 days before the date of consummation of the proposed transaction or the first transaction to occur in a proposed series of transactions.

   Inserted: (B) Other notifications.--

   Inserted: (i) In general.--Not later than the date in any year by which a participant is required to make its contribution to the Fund, the participant shall deliver to the Chief Executive Officer a written certification stating that--

   Inserted: (I) the participant has complied during the period since the last such certification or the date of enactment of this Act with the notice requirements set forth in this subsection; or

   Inserted: (II) the participant was not required to provide any notice under this subsection during such period.

   Inserted: (ii) Summary.--The Chief Executive Officer shall include in the annual report required to be submitted to Congress under section 405 a summary of all such notices (after removing all confidential identifying information) received during the most recent fiscal year.

   Inserted: (C) Notice completion.--The Chief Executive Officer shall not consider any notice given under paragraph (1) as given until such time as the Chief Executive Officer receives substantially all the information required by this subsection.

   Inserted: (3) Contents of notice.--

   Inserted: (A) In general.--The Chief Executive Officer shall determine by rule or regulation the information to be included in the notice required under this subsection, which shall include such information as may be necessary to enable the Chief Executive Officer to determine whether--

   Inserted: (i) the person or persons to whom the assets, properties or business are being transferred in the proposed transaction (or proposed series of transactions) should be considered to be the successor in interest of the participant for purposes of this Act, or

   Inserted: (ii) the proposed transaction (or proposed series of transactions) would, if consummated, be subject to avoidance by a trustee under section 544(b) or 548 of title 11, United States Code, as if, but whether or not, the participant is subject to a case under title 11, United States Code.

   Inserted: (B) Statements.--The notice shall also include--

   Inserted: (i) a statement by the participant as to whether it believes any person will or has become a successor in interest to the participant for purposes of this Act and, if so, the identity of that person; and

   Inserted: (ii) a statement by the participant as to whether that person has acknowledged that it will or has become a successor in interest for purposes of this Act.

   Inserted: (4) Definition.--In this subsection, the term "significant portion of the assets, properties or business of a participant" means assets (including, without limitation, tangible or intangible assets, securities and cash), properties or business of such participant (or its affiliated group, to the extent that the participant has elected to be part of an affiliated group under section 204(f)) that, together with any other asset, property or business transferred by such participant in any of the previous completed 5 fiscal years of such participant (or, as appropriate, its affiliated group), and as determined in accordance with United States generally accepted accounting principles as in effect from time to time--

   Inserted: (A) generated at least 40 percent of the revenues of such participant (or its affiliated group);

   Inserted: (B) constituted at least 40 percent of the assets of such participant (or its affiliated group);

   Inserted: (C) generated at least 40 percent of the operating cash flows of such participant (or its affiliated group); or

   Inserted: (D) generated at least 40 percent of the net income or loss of such participant (or its affiliated group), as measured during any of such 5 previous fiscal years.

   Inserted: (5) Consummation of transaction.--Any proposed transaction (or proposed series of transactions) with respect to which a participant is required to provide notice under paragraph (1) may not be consummated until at least 30 days after delivery to the Chief Executive Officer of such notice, unless the Chief Executive Officer shall earlier terminate the notice period. The Chief Executive Officer shall endeavor whenever possible to terminate a notice period at the earliest practicable time.

   Inserted: (6) Right of action.--

   Inserted: (A) In general.--Notwithstanding section 221(f), if the Chief Executive Officer or any participant believes that a participant proposes to engage or has engaged, directly or indirectly, in, or is the subject of, a transaction (or series of transactions)--

   Inserted: (i) involving a person or persons who, as a result of such transaction (or series of transactions), may have or may become the successor in interest or successors in interest of such participant, where the status or potential status as a successor in interest has not been stated and acknowledged by the participant and such person; or

   Inserted: (ii) that may be subject to avoidance by a trustee under section 544(b) or 548 of title 11, United States Code, as if, but whether or not, the participant is a subject to a case under title 11, United States Code, then the Chief Executive Officer or such participant may, as a deemed creditor under applicable law, bring a civil action in an appropriate forum against the participant or any other person who is either a party to the transaction (or series of transactions) or the recipient of any asset, property, or business of the participant.

   Inserted: (B) Relief allowed.--In any action commenced under this subsection, the Chief Executive Officer or a participant, as applicable, may seek--

   Inserted: (i) with respect to a transaction (or series of transactions) referenced in clause (i) of subparagraph (A), a declaratory judgment regarding whether such person will or has become the successor in interest of such participant; or

   Inserted: (ii) with respect to a transaction (or series of transactions) referenced in clause (ii) of subparagraph (A)--

   Inserted: (I) a temporary restraining order or a preliminary or permanent injunction against such transaction (or series of transactions); or

   Inserted: (II) such other relief regarding such transaction (or series of transactions) as the court determines to be necessary to ensure that performance of a participant's payment obligations under this Act is not materially impaired by reason of such transaction (or series of transactions).

   Inserted: (C) Applicability.--If the Chief Executive Officer or a participant wishes to challenge a statement made by a participant that a person will not or has not become a successor in interest for purposes of this Act, then this paragraph shall be the exclusive means by which the determination of whether such person will or has become a successor in interest of the participant shall be made. This paragraph shall not preempt any other rights of any person under applicable Federal or State law.

   Inserted: (D) Venue.--Any action under this paragraph shall be brought in any appropriate United States district court or, to the extent necessary to obtain complete relief, any other appropriate forum outside of the United States.

   Inserted: (7) Rules and regulations.--The Chief Executive Officer may promulgate regulations to effectuate the intent of this subsection, including regulations relating to the form, timing, and content of notices.

   Inserted: SEC. 224. INTEREST ON UNDERPAYMENT OR NONPAYMENT.

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

   Inserted: SEC. 225. EDUCATION, CONSULTATION, AND MONITORING.

   Inserted: (a) In General.--The Chief Executive Officer shall establish a program for the education, consultation, and medical monitoring of persons with exposure to asbestos. The program shall be funded by the Fund.

   Inserted: (b) Outreach and Education.--

   Inserted: (1) In general.--Not later than 1 year after the date of enactment of this Act, the Chief Executive Officer shall establish an outreach and education program, including a website designed to provide information about asbestos-related medical conditions to members of populations at risk of developing such conditions.

   Inserted: (2) Information.--The information provided under paragraph (1) shall include information about--

   Inserted: (A) the signs and symptoms of asbestos-related medical conditions;

   Inserted: (B) the value of appropriate medical screening programs; and

   Inserted: (C) actions that the individuals can take to reduce their future health risks related to asbestos exposure.

   Inserted: (c) Medical Monitoring Program and Protocols.--

   Inserted: (1) In general.--The Chief Executive Officer shall establish procedures for a medical monitoring program for persons exposed to asbestos who have been approved for level I compensation under section 131.

   Inserted: (2) Procedures.--The procedures for medical monitoring shall include--

   Inserted: (A) specific medical tests to be provided to eligible individuals and the periodicity of those tests, which shall initially be provided every 3 years and include--

   Inserted: (i) administration of a health evaluation and work history questionnaire;

   Inserted: (ii) physical examinations, including blood pressure measurement, chest examination, and examination for clubbing;

   Inserted: (iii) AP and lateral chest x-ray; and

   Inserted: (iv) spirometry performed according to ATS standards;

   Inserted: (B) qualifications of medical providers who are to provide the tests required under subparagraph (A); and

   Inserted: (C) administrative provisions for reimbursement from the Fund of the costs of monitoring eligible claimants, including the costs associated with the visits of the claimants to physicians in connection with medical monitoring, and with the costs of performing and analyzing the tests.

   Inserted: (3) Preferences.--

   Inserted: (A) In general.--In administering the monitoring program under this subsection, preference shall be given to medical and program providers with--

   Inserted: (i) a demonstrated capacity for identifying, contacting, and evaluating populations of workers or others previously exposed to asbestos; and

   Inserted: (ii) experience in establishing networks of medical providers to conduct medical screening and medical monitoring examinations.

   Inserted: (B) Provision of lists.--Claimants that are eligible to participate in the medical monitoring program shall be provided with a list of approved providers in their geographic area at the time such claimants become eligible to receive medical monitoring.

   Inserted: (d) Contracts.--The Chief Executive Officer may enter into contracts with qualified program providers that would permit the program providers to undertake medical monitoring programs by means of subcontracts with a network of medical providers, or other health providers.

   Inserted: (e) Review.--Not later than 5 years after the date of enactment of this Act, and every 5 years thereafter, the Chief Executive Officer shall review, and if necessary update, the protocols and procedures established under this section.

   Inserted: SEC. 226. OVERSIGHT BY THE SECRETARY OF THE TREASURY.

   Inserted: The Secretary of the Treasury shall have authority to serve as the Federal Government's safety and soundness regulator for the Corporation, and may promulgate such regulations and exercise such authority as necessary to ensure the fiscal safety and soundness of the Corporation.

   Inserted: SEC. 227. ADMINISTRATIVE FUNDING.

   Inserted: The Corporation and Asbestos Insurers Committee shall each establish a budget for each fiscal year, which shall be reviewed and approved according to their respective internal procedures not less than 6 months before the commencement of the fiscal year to which the budget pertains. The budgets shall be subject to approval by the Secretary of the Treasury.

   Inserted: TITLE III--JUDICIAL REVIEW

   Inserted: SEC. 301. JUDICIAL REVIEW OF PROCEDURES.

   Inserted: (a) Exclusive Jurisdiction.--The United States Court of Appeals for the Federal Circuit shall have exclusive jurisdiction over any action to review written procedures issued by the Chief Executive Officer or by the Asbestos Insurers Committee or under this Act.

   Inserted: (b) Review.--Any party adversely affected or aggrieved by any provision of the written procedures issued by the Chief Executive Officer or by the Asbestos Insurers Committee or under this Act shall file a petition for review not later than 60 days after the date of issuance of such procedures.

   Inserted: (c) Standard of Review.--The court shall uphold the provision of the written procedures being challenged unless the court determines that issuance of such procedure is arbitrary and capricious or contrary to law.

   Inserted: (d) Expedited Treatment.--The United States Court of Appeals for the Federal Circuit shall provide expedited treatment for actions filed under this section.

   Inserted: SEC. 302. JUDICIAL REVIEW OF AWARD DECISIONS.

   Inserted: (a) In General.--Any claimant adversely affected or aggrieved by a final decision of the Chief Executive Officer awarding or denying compensation under title I may petition for judicial review of such decision. Any petition for review under this section shall be filed within 90 days of the issuance of a final decision of the Chief Executive Officer.

   Inserted: (b) Exclusive Jurisdiction.--A petition for review may only be filed in the United States Court of Appeals for the Federal Circuit.

   Inserted: (c) Standard of Review.--The court shall uphold the decision of the Chief Executive Officer unless the court determines, upon review of the record as a whole, that the decision is not supported by substantial evidence, is contrary to law, or is not in accordance with procedure required by law.

   Inserted: (d) Expedited Procedures.--The United States Court of Appeals shall provide for expedited procedures for reviews under this section.

   Inserted: SEC. 303. JUDICIAL REVIEW OF PARTICIPANTS' ASSESSMENTS.

   Inserted: (a) Exclusive Jurisdiction.--The United States Court of Appeals for the Federal Circuit shall have exclusive jurisdiction over any action to review a final determination by the Chief Executive Officer or the Asbestos Insurers Committee regarding the liability of any person to make a payment to the Fund, including a notice of applicable subtier assignment under section 204(i), a notice of financial hardship or inequity determination under section 204(d), and a notice of insurer participant obligation under section 212(b).

   Inserted: (b) Period for Filing Action.--A petition for review under subsection (a) shall be filed not later than 60 days after a final determination by the Chief Executive Officer or the Asbestos Insurers Committee giving rise to the action. Any defendant participant who receives a notice of its applicable subtier under section 204(i) or a notice of financial hardship or inequity determination under section 204(d) shall commence any action within 30 days after a decision on rehearing under section 204(i)(10), and any insurer participant who receives a notice of a payment obligation under section 212(b) shall commence any action within 30 days after receiving such notice. The court shall give such action expedited consideration.

   Inserted: SEC. 304. OTHER JUDICIAL CHALLENGES.

   Inserted: (a) Exclusive Jurisdiction.--The United States District Court for the District of Columbia shall have exclusive jurisdiction over any action for declaratory or injunctive relief challenging any provision of this Act. An action under this section shall be filed not later than 60 days after the date of enactment of this Act or 60 days after the final action by the Chief Executive Officer or the Asbestos Insurers Committee giving rise to the action, whichever is later.

   Inserted: (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.

   Inserted: (c) Expedited Procedures.--It shall be the duty of the United States District Court for the District of Columbia and the Supreme Court of the United States to advance on the docket and to expedite to the greatest possible extent the disposition of the action and appeal.

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

   Inserted: (a) No Stays.--No court may issue a stay of payment by any party into the Fund pending its final judgment.

   Inserted: (b) Exclusivity of Review.--An action of the Chief Executive Officer or the Asbestos Insurers Committee for which review could have been obtained under section 301, 302, or 303 shall not be subject to judicial review in any other proceeding.

   Inserted: (c) Constitutional Review.--

   Inserted: (1) In general.--The United States District Court for the District of Columbia shall have exclusive jurisdiction over any action challenging the constitutionality of any provision or application of this Act. The following rules shall apply:

   Inserted: (A) The action shall be filed in the United States District Court for the District of Columbia and shall be heard by a 3-judge court convened under section 2284 of title 28, United States Code.

   Inserted: (B) A final decision in the action shall be reviewable only by appeal directly to the Supreme Court of the United States. Such appeal shall be taken by the filing of a notice of appeal within 10 days, and the filing of a jurisdictional statement within 30 days, after the entry of the final decision.

   Inserted: (C) It shall be the duty of the United States District Court for the District of Columbia and the Supreme Court of the United States to advance on the docket and to expedite to the greatest possible extent the disposition of the action and appeal.

   Inserted: (2) Repayment to asbestos trust and class action trust.--If the transfer of the assets of any asbestos trust of a debtor or any class action trust (or this Act as a whole) is held to be unconstitutional or otherwise unlawful, the Fund shall transfer the remaining balance of such assets (determined under section 405(f)(1)(A)(iii)) back to the appropriate asbestos trust or class action trust within 90 days after final judicial action on the legal challenge, including the exhaustion of all appeals.

   Inserted: SEC. 306. REPRESENTATIONS TO COURT.

   Inserted: (a) Representations to the Reviewing Judicial Body.--By presenting a request for judicial review under this title, a participant in the Fund, or a person acting on behalf of a participant in the Fund, certifies that to the best of the person's knowledge, information, and belief, formed after an inquiry reasonable under the circumstances--

   Inserted: (1) it is not being presented for any improper purpose, such as to harass or to cause unnecessary delay or needless increase in the cost of litigation;

   Inserted: (2) the claims, defenses, and other legal contentions therein are warranted by existing law or by a nonfrivolous argument for the extension, modification, or reversal of existing law or the establishment of new law;

   Inserted: (3) the allegations and other factual contentions have evidentiary support; and

   Inserted: (4) the denials of factual contentions are warranted on the evidence.

   Inserted: (b) Sanctions.--

   Inserted: (1) In general.--If, after notice and a reasonable opportunity to respond, the reviewing judicial body determines that subsection (a) has been violated, the reviewing judicial body may, subject to the provisions of this subsection, impose an appropriate sanction upon the requesting participant, or parties that have violated subsection (a) or are responsible for the violation.

   Inserted: (2) Show cause order.--The reviewing judicial body may enter an order describing the specific conduct that appears to violate subsection (a) and directing a party to show cause why it has not violated subsection (a) with respect thereto.

   Inserted: (3) Sanctions.--

   Inserted: (A) In general.--A sanction imposed for violation of this rule shall be limited to what is sufficient to deter repetition of such conduct or comparable conduct by others similarly situated. Subject to subparagraph (B), the sanction may consist of, or include, directives of a nonmonetary nature, an order to pay a penalty of up to $500,000, or, if imposed on motion and warranted for effective deterrence, an order directing payment to the movant of some or all of the reasonable expenses incurred as a direct result of the violation.

   Inserted: (B) Monetary sanctions.--Monetary sanctions may not be awarded unless the reviewing judicial body issues its order to show cause before a voluntary dismissal or settlement of the claims made by or against the party which is to be sanctioned.

   Inserted: (4) Order.--When imposing sanctions, the reviewing judicial body shall describe the conduct determined to constitute a violation of this rule and explain the basis for the sanction imposed.

   Inserted: TITLE IV--MISCELLANEOUS PROVISIONS

   Inserted: SEC. 401. FALSE INFORMATION.

   Inserted: (a) Criminal Liability.--

   Inserted: (1) In general.--Chapter 63 of title 18, United States Code, is amended by adding at the end the following:

   Inserted: "Sec. 1351. Fraud and false statements in connection with participation in Asbestos Injury Claims Resolution Fund

   Inserted: "(a) Fraud Relating to Asbestos Injury Claims Resolution Fund.--Whoever knowingly and willfully executes, or attempts to execute, a scheme or artifice to defraud the Office of Asbestos Disease Compensation or the Asbestos Insurers Committee under title II of the Fairness in Asbestos Injury Resolution Act of 2006 shall be fined under this title or imprisoned not more than 20 years, or both.

   Inserted: "(b) False Statement Relating to Asbestos Injury Claims Resolution Fund.--

   Inserted: "(1) In general.--It shall be unlawful for any person, in any matter involving the Office of Asbestos Disease Compensation or the Asbestos Insurers Committee, to knowingly and willfully--

   Inserted: "(A) falsify, conceal, or cover up by any trick, scheme, or device a material fact;

   Inserted: "(B) make any materially false, fictitious, or fraudulent statement or representation; or

   Inserted: "(C) make or use any false writing or document knowing the same to contain any materially false, fictitious, or fraudulent statement or entry, in connection with the award of a claim or the determination of a participant's payment obligation under title I or II of the Fairness in Asbestos Injury Resolution Act of 2006.

   Inserted: "(2) Penalty.--A person who violates this subsection shall be fined under this title or imprisoned not more than 10 years, or both.".

   Inserted: (2) Technical and conforming amendment.--The table of sections for chapter 63 of title 18, United States Code, is amended by adding at the end the following:

   Inserted: "1348. Fraud and false statements in connection with participation in Asbestos Injury Claims Resolution Fund.".

   Inserted: (b) Further Liability.--

   Inserted: (1) Definition.--In this section, the term "knowingly" means that a person, with respect to information--

   Inserted: (A) has actual knowledge of the information;

   Inserted: (B) acts in deliberate ignorance of the truth or falsity of the information; or

   Inserted: (C) acts in reckless disregard of the truth or falsity of the information.

   Inserted: (2) Liability.--Any defendant participant or insurer participant that knowingly makes, uses, or causes to be made or used a false record or statement to conceal, avoid, or decrease an obligation to pay or transmit money or property to the Corporation shall be liable under the standards of section 3729 of title 31, United States Code.

   Inserted: SEC. 402. EFFECT ON BANKRUPTCY LAWS.

   Inserted: (a) No Automatic Stay.--Section 362(b) of title 11, United States Code, is amended--

   Inserted: (1) in paragraph (17), by striking "or" at the end;

   Inserted: (2) in paragraph (18), by striking the period at the end and inserting "; or"; and

   Inserted: (3) by inserting after paragraph (18) the following:

   Inserted: "(19) under subsection (a) of this section of the enforcement of any payment obligations under section 204 of the Fairness in Asbestos Injury Resolution Act of 2006, 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).".

   Inserted: (b) Assumption of Executory Contract.--Section 365 of title 11, United States Code, is amended by adding at the end the following:

   Inserted: "(p) If a debtor is a participant (as that term is defined in section 3 of the Fairness in Asbestos Injury Resolution Act of 2006), the trustee shall be deemed to have assumed all executory contracts entered into by the participant under section 204 of that Act. The trustee may not reject any such executory contract.".

   Inserted: (c) Allowed Administrative Expenses.--Section 503 of title 11, United States Code, is amended by adding at the end the following:

   Inserted: "(c)(1) Claims or expenses of the United States, the Attorney General, or the Chief Executive Officer (as that term is defined in section 3 of the Fairness in Asbestos Injury Resolution Act of 2006) 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.

   Inserted: "(2) For purposes of paragraph (1), the term 'asbestos payment obligation' means any payment obligation under title II of the Fairness in Asbestos Injury Resolution Act of 2006.".

   Inserted: (d) No Discharge.--Section 523 of title 11, United States Code, is amended by adding at the end the following:

   Inserted: "(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 2006) of the debtor's payment obligations assessed against the participant under title II of that Act.".

   Inserted: (e) Payment.--Section 524 of title 11, United States Code, is amended by adding at the end the following:

   Inserted: "(i) Participant Debtors.--

   Inserted: "(1) In general.--Paragraphs (2) and (3) shall apply to a debtor who--

   Inserted: "(A) is a participant that has made prior asbestos expenditures (as such terms are defined in the Fairness in Asbestos Injury Resolution Act of 2006); and

   Inserted: "(B) is subject to a case under this title that is pending--

   Inserted: "(i) on the date of enactment of the Fairness in Asbestos Injury Resolution Act of 2006; or

   Inserted: "(ii) at any time during the 1-year period preceding the date of enactment of that Act.

   Inserted: "(2) Tier i debtors.--A debtor that has been assigned to Tier I under section 202 of the Fairness in Asbestos Injury Resolution Act of 2006, shall make payments in accordance with sections 202 and 203 of that Act.

   Inserted: "(3) Treatment of payment obligations.--All payment obligations of a debtor under sections 202 and 203 of the Fairness in Asbestos Injury Resolution Act of 2006 shall--

   Inserted: "(A) constitute costs and expenses of administration of a case under section 503 of this title;

   Inserted: "(B) notwithstanding any case pending under this title, be payable in accordance with section 202 of that Act;

   Inserted: "(C) not be stayed;

   Inserted: "(D) not be affected as to enforcement or collection by any stay or injunction of any court; and

   Inserted: "(E) not be impaired or discharged in any current or future case under this title.".

   Inserted: (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:

   Inserted: "(j) Asbestos Trusts.--

   Inserted: "(1) In general.--A trust shall assign a portion of the corpus of the trust to the Asbestos Injury Claims Resolution Fund (referred to in this subsection as the 'Fund') as established under the Fairness in Asbestos Injury Resolution Act of 2006--

   Inserted: "(A) the trust qualifies as a trust under section 201 of that Act; and

   Inserted: "(B) the trust does not file an election under section 410 of that Act.

   Inserted: "(2) Transfer of trust assets.--

   Inserted: "(A) In general.--

   Inserted: "(i) Except as provided under subparagraphs (B), (C), and (E), the assets in any trust established to provide compensation for asbestos claims (as defined in section 3 of the Fairness in Asbestos Injury Resolution Act of 2006) shall be transferred to the Fund not later than 90 days after the date of enactment of the Fairness in Asbestos Injury Resolution Act of 2006 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 Chief Executive Officer of the Fund shall accept such assets and utilize them for any purposes of the Fund under section 221 of such Act, including the payment of claims for awards under such Act to beneficiaries of the trust from which the assets were transferred.

   Inserted: "(ii) Notwithstanding any other provision of Federal or State law, no liability of any kind may be imposed on a trustee of a trust for transferring assets to the Fund in accordance with clause (i).

   Inserted: "(B) Authority to refuse assets.--The Chief Executive Officer of the Fund may refuse to accept any asset that the Chief Executive Officer determines may create liability for the Fund in excess of the value of the asset.

   Inserted: "(C) Allocation of trust assets.--If a trust under subparagraph (A) has beneficiaries with claims that are not asbestos claims, the assets transferred to the Fund under subparagraph (A) shall not include assets allocable to such beneficiaries. The trustees of any such trust shall determine the amount of such trust assets to be reserved for the continuing operation of the trust in processing and paying claims that are not asbestos claims. The trustees shall demonstrate to the satisfaction of the Chief Executive Officer, or by clear and convincing evidence in a proceeding brought before the United States District Court for the District of Columbia in accordance with paragraph (4), that the amount reserved is properly allocable to claims other than asbestos claims.

   Inserted: "(D) Sale of fund assets.--The investment requirements under section 222 of the Fairness in Asbestos Injury Resolution Act of 2006 shall not be construed to require the Chief Executive Officer of the Fund to sell assets transferred to the Fund under subparagraph (A).

   Inserted: "(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 2006, and a trust shall not make any payment relating to asbestos claims after that date. If, in the ordinary course and the normal and usual administration of the trust consistent with past practices, a trust had before the date of enactment of the Fairness in Asbestos Injury Resolution Act of 2006, made all determinations necessary to entitle an individual claimant to a noncontingent cash payment from the trust, the trust shall (i) make any lump-sum cash payment due to that claimant, and (ii) make or provide for all remaining noncontingent payments on any award being paid or scheduled to be paid on an installment basis, in each case only to the same extent that the trust would have made such cash payments in the ordinary course and consistent with past practices before enactment of that Act. A trust shall not make any payment in respect of any alleged contingent right to recover any greater amount than the trust had already paid, or had completed all determinations necessary to pay, to a claimant in cash in accordance with its ordinary distribution procedures in effect as of June 1, 2003.

   Inserted: "(3) Injunction.--

   Inserted: "(A) In general.--Any injunction issued as part of the formation of a trust described in paragraph (1) shall remain in full force and effect. No court, Federal or State, may enjoin the transfer of assets by a trust to the Fund in accordance with this subsection pending resolution of any litigation challenging such transfer or the validity of this subsection or of any provision of the Fairness in Asbestos Injury Resolution Act of 2006, and an interlocutory order denying such relief shall not be subject to immediate appeal under section 1291(a) of title 28.

   Inserted: "(B) Availability of fund assets.--Notwithstanding any other provision of law, once such a transfer has been made, the assets of the Fund shall be available to satisfy any final judgment entered in such an action and such transfer shall no longer be subject to any appeal or review--

   Inserted: "(i) declaring that the transfer effected a taking of a right or property for which an individual is constitutionally entitled to just compensation; or

   Inserted: "(ii) requiring the transfer back to a trust of any or all assets transferred by that trust to the Fund.

   Inserted: "(4) Jurisdiction.--Solely for purposes of implementing this subsection, personal jurisdiction over every covered trust, the trustees thereof, and any other necessary party, and exclusive subject matter jurisdiction over every question arising out of or related to this subsection, shall be vested in the United States District Court for the District of Columbia. Notwithstanding any other provision of law, including section 1127 of this title, that court may make any order necessary and appropriate to facilitate prompt compliance with this subsection, including assuming jurisdiction over and modifying, to the extent necessary, any applicable confirmation order or other order with continuing and prospective application to a covered trust. The court may also resolve any related challenge to the constitutionality of this subsection or of its application to any trust, trustee, or individual claimant. The Chief Executive Officer of the Fund may bring an action seeking such an order or modification, under the standards of rule 60(b) of the Federal Rules of Civil Procedure or otherwise, and shall be entitled to intervene as of right in any action brought by any other party seeking interpretation, application, or invalidation of this subsection. Any order denying relief that would facilitate prompt compliance with the transfer provisions of this subsection shall be subject to immediate appeal under section 304 of the Fairness in Asbestos Injury Resolution Act of 2006. Notwithstanding any other provision of this paragraph, for purposes of implementing the sunset provisions of section 402(f) of such Act which apply to asbestos trusts and the class action trust, the bankruptcy court or United States district court having jurisdiction over any such trust as of the date of enactment of such Act shall retain such jurisdiction.".

   Inserted: (g) No Avoidance of Transfer.--Section 546 of title 11, United States Code, is amended by adding at the end the following:

   Inserted: "(h) Notwithstanding the rights and powers of a trustee under sections 544, 545, 547, 548, 549, and 550 of this title, if a debtor is a participant (as that term is defined in section 3 of the Fairness in Asbestos Injury Resolution Act of 2006), the trustee may not avoid a transfer made by the debtor under its payment obligations under section 202 or 203 of that Act.".

   Inserted: (h) Confirmation of Plan.--Section 1129(a) of title 11, United States Code, is amended by adding at the end the following:

   Inserted: "(14) If the debtor is a participant (as that term is defined in section 3 of the Fairness in Asbestos Injury Resolution Act of 2006), the plan provides for the continuation after its effective date of payment of all payment obligations under title II of that Act.".

   Inserted: (i) Effect on Insurance Receivership Proceedings.--

   Inserted: (1) Lien.--In an insurance receivership proceeding involving a direct insurer, reinsurer or runoff participant, there shall be a lien in favor of the Fund for the amount of any assessment and any such lien shall be given priority over all other claims against the participant in receivership, except for the expenses of administration of the receivership and the perfected claims of the secured creditors. Any State law that provides for priorities inconsistent with this provision is preempted by this Act.

   Inserted: (2) Payment of assessment.--Payment of any assessment required by this Act shall not be subject to any automatic or judicially entered stay in any insurance receivership proceeding. This Act shall preempt any State law requiring that payments by a direct insurer, reinsurer or runoff participant in an insurance receivership proceeding be approved by a court, receiver or other person. Payments of assessments by any direct insurer or reinsurer participant under this Act shall not be subject to the avoidance powers of a receiver or a court in or relating to an insurance receivership proceeding.

   Inserted: (j) Standing in Bankruptcy Proceedings.--The Chief Executive Officer shall have standing in any bankruptcy case involving a debtor participant. No bankruptcy court may require the Chief Executive Officer to return property seized to satisfy obligations to the Fund.

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

   Inserted: (a) Effect on Federal and State Law.--The provisions of this Act shall supersede any Federal or State law insofar as such law may relate to any asbestos claim, including any claim described under subsection (e)(2).

   Inserted: (b) Effect on Non-Asbestos Claims.--

   Inserted: (1) In general.--

   Inserted: (A) Rule of construction.--Nothing in this Act shall be construed to preempt, bar, or otherwise preclude any personal injury claim attributable to exposure to airborne minerals, dusts, or fibers other than asbestos as to which the plaintiff--

   Inserted: (i) pleads with particularity and establishes by a preponderance of evidence either that--

   Inserted: (I) no claim has been asserted or filed by or with respect to the exposed person in any forum for any asbestos-related condition and the exposed person (or another claiming on behalf of or through the exposed person) is not eligible for any award under this Act; or

   Inserted: (II)(aa) the exposed person suffers or has suffered a functional impairment that was caused by exposure to 1 or more airborne minerals, dusts, or fibers other than asbestos;

   Inserted: (bb) asbestos exposure was not a significant contributing factor to such functional impairment; and

   Inserted: (cc) the functional impairment is materially different than that for which the exposed person (or another claiming on behalf of or through the exposed person) has obtained or is eligible to obtain an award under this Act; and

   Inserted: (ii) satisfies the requirements of paragraph (2).

   Inserted: (B) Preemption.--Claims attributable to exposure to airborne minerals, dusts, or fibers other than asbestos that fail to meet the requirements of subparagraph (a) shall be preempted by this Act.

   Inserted: (2) Required evidence.--In any claim to which paragraph (1) applies, the initial pleading (or, for claims pending on the date of enactment of this Act, an amended pleading to be filed within 30 days after such date), shall plead with particularity the elements of subparagraph (A)(i) (I) or (II) of paragraph (1) and shall be accompanied by the information described in subparagraphs (A) through (D) of this paragraph if the claim pleads the elements of subparagraph (A)(i)(II) of paragraph (1) and by the information described in subparagraphs (B) through (D) of this paragraph if the claim pleads the elements of subparagraph (A)(i)(I) of paragraph (1)--

   Inserted: (A) admissible evidence, including at a minimum, a certified B-reader's report, the underlying x-ray film, and such other evidence sufficient to establish a prima facie showing that the claim may be maintained and is not preempted under paragraph (1);

   Inserted: (B) notice of any previous lawsuit or claim for benefits in which the exposed person, or another claiming on behalf of or through the injured person, asserted an injury or disability based wholly or in part on exposure to asbestos;

   Inserted: (C) the history of the exposed person's exposure, if any, to asbestos; and

   Inserted: (D) copies of all medical and laboratory reports pertaining to the exposed person that refer to asbestos or asbestos exposure.

   Inserted: (c) Superseding Provisions.--

   Inserted: (1) In general.--Except as provided under paragraph (3), any agreement, understanding, or undertaking by any person or affiliated group with respect to the treatment of any asbestos claim that requires future performance by any party, insurer of such party, settlement Chief Executive Officer, or escrow agent shall be superseded in its entirety by this Act.

   Inserted: (2) No force or effect.--Except as provided under paragraph (3), any such agreement, understanding, or undertaking by any such person or affiliated group shall be of no force or effect, and no person shall have any rights or claims with respect to any such agreement, understanding, or undertaking.

   Inserted: (3) Exception.--

   Inserted: (A) In general.--Except as provided in section 202(f), nothing in this Act shall abrogate a binding and legally enforceable written settlement agreement between any defendant participant or its insurer and a specific named plaintiff with respect to the settlement of an asbestos claim of the plaintiff if--

   Inserted: (i) before the date of enactment of this Act, the settlement agreement was executed directly by the settling defendant or the settling insurer and the individual plaintiff, or on behalf of the plaintiff where the plaintiff is incapacitated and the settlement agreement is signed by an authorized legal representative;

   Inserted: (ii) the settlement agreement contains an express obligation by the settling defendant or settling insurer to make a future direct monetary payment or payments in a fixed amount or amounts to the individual plaintiff; and

   Inserted: (iii) within 30 days after the date of enactment of this Act, or such shorter time period specified in the settlement agreement, all conditions to payment under the settlement agreement have been fulfilled, including any required court approval of the settlement, so that the only remaining performance due under the settlement agreement is the payment or payments by the settling defendant or the settling insurer.

   Inserted: (B) Bankruptcy-related agreements.--The exception set forth in this paragraph shall not apply to any bankruptcy-related agreement.

   Inserted: (C) Collateral source.--Any settlement payment under this section is a collateral source if the plaintiff seeks recovery from the Fund.

   Inserted: (D) Abrogation.--Nothing in subparagraph (A) shall abrogate a settlement agreement otherwise satisfying the requirements of that subparagraph if such settlement agreement expressly anticipates the enactment of this Act and provides for the effects of this Act.

   Inserted: (d) Exclusive Remedy.--The remedies provided under this Act shall be the exclusive remedy for any asbestos claim, including any claim described in subsection (e)(2), under any Federal or State law.

   Inserted: (e) Bar on Asbestos Claims.--

   Inserted: (1) In general.--No asbestos claim (including any claim described in paragraph (2)) may be pursued, and no pending asbestos claim may be maintained, in any Federal or State court, except for enforcement of claims for which an unappealable verdict or final order or final judgment has been entered by a court before the date of enactment of this Act.

   Inserted: (2) Certain specified claims.--

   Inserted: (A) In general.--Subject to section 404 (d) and (e)(3) of this Act, no claim may be brought or pursued in any Federal or State court or insurance receivership proceeding--

   Inserted: (i) relating to any default, confessed or stipulated judgment on an asbestos claim if the judgment debtor expressly agreed, in writing or otherwise, not to contest the entry of judgment against it and the plaintiff expressly agreed, in writing or otherwise, to seek satisfaction of the judgment only against insurers or in bankruptcy;

   Inserted: (ii) relating to the defense, investigation, handling, litigation, settlement, or payment of any asbestos claim by any participant, including claims for bad faith or unfair or deceptive claims handling or breach of any duties of good faith; or

   Inserted: (iii) arising out of or relating to the asbestos-related injury of any individual and--

   Inserted: (I) asserting any conspiracy, concert of action, aiding or abetting, act, conduct, statement, misstatement, undertaking, publication, omission, or failure to detect, speak, disclose, publish, or warn relating to the presence or health effects of asbestos or the use, sale, distribution, manufacture, production, development, inspection, advertising, marketing, or installation of asbestos; or

   Inserted: (II) asserting any conspiracy, act, conduct, statement, omission, or failure to detect, disclose, or warn relating to the presence or health effects of asbestos or the use, sale, distribution, manufacture, production, development, inspection, advertising, marketing, or installation of asbestos, asserted as or in a direct action against an insurer or reinsurer based upon any theory, statutory, contract, tort, or otherwise; or

   Inserted: (iv) by any third party, and premised on any theory, allegation, or cause of action, for reimbursement of healthcare costs allegedly associated with the use of or exposure to asbestos, whether such claim is asserted directly, indirectly or derivatively.

   Inserted: (B) Exceptions.--Subparagraph (A) (ii) and (iii) shall not apply to claims against participants by persons--

   Inserted: (i) with whom the participant is in privity of contract;

   Inserted: (ii) who have received an assignment of insurance rights not otherwise voided by this Act; or

   Inserted: (iii) who are beneficiaries covered by the express terms of a contract with that participant.

   Inserted: (3) Preemption.--Any action asserting an asbestos claim (including a claim described in paragraph (2)) in any Federal or State court is preempted by this Act, except for any action for which an unappealable verdict or final order or final judgment has been entered by a court before the date of enactment of this Act.

   Inserted: (4) Dismissal.--No judgment other than a judgment of dismissal may be entered in any such action, including an action pending on appeal, or on petition or motion for discretionary review, on or after the date of enactment of this Act. A court may dismiss any such action on its motion. If the court denies the motion to dismiss, it shall stay further proceedings until final disposition of any appeal taken under this Act.

   Inserted: (5) Removal.--

   Inserted: (A) In general.--If an action in any State court under paragraph (3) is preempted, barred, or otherwise precluded under this Act, and not dismissed, or if an order entered after the date of enactment of this Act purporting to enter judgment or deny review is not rescinded and replaced with an order of dismissal within 30 days after the filing of a motion by any party to the action advising the court of the provisions of this Act, any party may remove the case to the district court of the United States for the district in which such action is pending.

   Inserted: (B) Time limits.--For actions originally filed after the date of enactment of this Act, the notice of removal shall be filed within the time limits specified in section 1441(b) of title 28, United States Code.

   Inserted: (C) Procedures.--The procedures for removal and proceedings after removal shall be in accordance with sections 1446 through 1450 of title 28, United States Code, except--

   Inserted: (i) as may be necessary to accommodate removal of any actions pending (including on appeal) on the date of enactment of this Act; and

   Inserted: (ii) orders to remand removed actions shall be immediately appealable.

   Inserted: (D) Jurisdiction.--The jurisdiction of the district court shall be limited to--

   Inserted: (i) determining whether removal was proper; and

   Inserted: (ii) determining, based on the evidentiary record, whether the claim presented is preempted, barred, or otherwise precluded under this Act.

   Inserted: (6) Credits.--If, notwithstanding the express intent of Congress stated in this section, any court finally determines for any reason that an asbestos claim, including a claim described under paragraph (2), for which, as of the date of enactment of this Act, there had been no verdict or final order or final judgment entered by a court, is not subject to the exclusive remedy or preemption provisions of this section, then any participant required to satisfy a final judgment executed with respect to any such claim may elect to receive a credit against any assessment owed to the Fund equal to the amount of the payment made with respect to such executed judgment. The Chief Executive Officer shall require participants seeking credit under this section to demonstrate that the participant timely pursued all available remedies, including remedies available under this section to obtain dismissal of the claim, and that the participant notified the Chief Executive Officer at least 20 days before the expiration of any period within which to appeal the denial of a motion to dismiss based on this section. The Chief Executive Officer may require such participant to furnish such further information as is necessary and appropriate to establish eligibility for and the amount of the credits. The Chief Executive Officer may intervene in any action in which a credit may be due under this section.

   Inserted: SEC. 404. EFFECT ON INSURANCE AND REINSURANCE CONTRACTS.

   Inserted: (a) Erosion of Insurance Coverage Limits.--

   Inserted: (1) Definitions.--In this section, the following definitions shall apply:

   Inserted: (A) Deemed erosion amount.--The term "deemed erosion amount" means the amount of erosion deemed to occur at enactment under paragraph (2).

   Inserted: (B) Earned erosion amount.--The term "earned erosion amount" means, in the event of any early sunset under section 405(f), the percentage, as set forth in the following schedule, depending on the year in which the defendant participants' funding obligations end, of those amounts which, at the time of the early sunset, a defendant participant has paid to the fund and remains obligated to pay into the fund.

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As printed