E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 109 CONGRESS, SECOND SESSION

Vol. 152 WASHINGTON, TUESDAY, FEBRUARY 14, 2006 No. 18 House of Representatives The House met at 2 p.m. and was come forward and lead the House in the THE PRESIDENT’S BUDGET called to order by the Speaker pro tem- Pledge of Allegiance. PROPOSAL pore (Mr. ISSA). Mr. GINGREY led the Pledge of Alle- (Ms. CARSON asked and was given f giance as follows: permission to address the House for 1 I pledge allegiance to the Flag of the minute and to revise and extend her re- DESIGNATION OF THE SPEAKER United States of America, and to the Repub- marks.) PRO TEMPORE lic for which it stands, one nation under God, Ms. CARSON. Mr. Speaker, today is The SPEAKER pro tempore laid be- indivisible, with liberty and justice for all. Valentine’s Day, representing our fore the House the following commu- heart. I would like to extend my heart nication from the Speaker: f to all of the Members of the United WASHINGTON, DC. States Congress. February 14, 2006. NSA TERRORIST SURVEILLANCE The President’s budget does not, in I hereby appoint the Honorable DARRELL E. fact, reflect a warm heart, as it elimi- (Mrs. MILLER of Michigan asked and ISSA to act as Speaker pro tempore on this nates funding for the Commodity Sup- was given permission to address the day. plemental Food Program. Each month, J. DENNIS HASTERT House for 1 minute.) CSFP provides over 475,000 low-income Speaker of the House of Representatives. Mrs. MILLER of Michigan. Mr. individuals with nutritious food pack- Speaker, since it has been revealed f ages; 85 percent of the recipients are that the NSA had a terrorist surveil- seniors, all with income levels below a PRAYER lance program, opponents of the ad- meager $12,400 per year. The Chaplain, the Reverend Daniel P. ministration have been quick to criti- In Indiana, 4,979 seniors are currently Coughlin, offered the following prayer: cize this program. enrolled in this program. Next year, Lord God Almighty, giver of all good Let us try to set the record straight they could go hungry if the program is gifts and authority’s source of wisdom, on this effective tool in fighting the eliminated. we stand humbly before You. We ask war on terror. One Senator has charged The budget proposal enables partici- Your forgiveness for the times we are the NSA is eavesdropping on Ameri- pants to enroll in a food stamp pro- self-centered and not attuned to the cans who have no indication of wrong- gram once the CSFP is eliminated. The needs of others or Your holy inspira- doing. The Senate minority leader, who food stamp program, while extremely tions. has been briefed on the program, called important, does not offer the same ben- Give us strength today to accomplish it domestic spying. efit and convenience that CSFP does. the work of the people in the House of In fact, this program is extremely The food packages that seniors receive freedom and civil expression. Receive limited to international communica- from the CSFP go to veterans who are our praise and thanksgiving for Your tions, in which one party is suspected sleeping under a bridge and who are countless gifts and the opportunity to of links to al Qaeda or other terrorist homeless. serve in government. organizations, like calls made by 9/11 I would ask the majority leadership To You be honor and glory now and hijackers to their leaders in Afghani- of this Congress to redress those in- forever. Amen. stan. equities in the President’s budget. f Are some Democrats so confused, or Some seniors are also hesitant to partici- do they care more about attempting to pate in the food stamp program because they THE JOURNAL gain political advantage than pro- perceive it as a welfare program. Yet these The SPEAKER pro tempore. The tecting our Nation? same seniors participate in the CSFP in Indi- Chair has examined the Journal of the Mr. Speaker, we know our enemies ana. last day’s proceedings and announces place operatives within our borders I was touched by the story of a senior who to the House his approval thereof. who blend in and wait to strike as they received her first CSFP box from Gleaners. Pursuant to clause 1, rule I, the Jour- did on 9/11, but they are still out there. She cried after discovering 12 pudding cups in nal stands approved. I do not care one iota about protecting her box. Her case manager explained, ‘‘Pud- f the privacy of terrorists who have been ding is a luxury she has not been able to af- sent to this country to murder inno- ford in a very long time.’’ Let’s not forget that PLEDGE OF ALLEGIANCE cent Americans. It is regretful that as we craft a budget resolution, something as The SPEAKER pro tempore. Will the some seek political gain at the expense simple as pudding cups are a great luxury for gentleman from Georgia (Mr. GINGREY) of our security. some Americans.

b This symbol represents the time of day during the House proceedings, e.g., b 1407 is 2:07 p.m. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor.

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VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00001 Fmt 4634 Sfmt 9920 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE H228 CONGRESSIONAL RECORD — HOUSE February 14, 2006 Our budget is a reflection of our values and President and Texan George Bush. lion over the next 5 years. Medicaid, as priorities. Our seniors deserve the very best Please join me in congratulating the many of you know, helps women and from us, and it is incumbent upon us to keep Longhorns on their championship sea- children, the most vulnerable in our them in mind when determining our budget al- son. Hook ’Em Horns. population. I urge the Congress to re- locations. f ject this morally irresponsible budget. f OLYMPIAN AND TEXAN CHAD f SALUTING THE BRAVERY OF HEDRICK MORAL SECURITY BORDER PATROL AGENTS (Mr. POE asked and was given per- (Mrs. BLACKBURN asked and was (Mr. KELLER asked and was given mission to address the House for 1 given permission to address the House permission to address the House for 1 minute.) for 1 minute and to revise and extend minute.) Mr. POE. Mr. Speaker, there is a her remarks.) Mr. KELLER. Mr. Speaker, today I Texas-sized force to be reckoned with Mrs. BLACKBURN. Mr. Speaker, our rise to salute the bravery of Border Pa- in Italy. Chad Hedrick, the 28-year-old constituents expect us to not only trol agents working along the Mexican former inline skating icon from Spring, guard the economic and national secu- border. I recently returned from a Texas, is speed skating his way to vic- rity of this Nation; they expect us to week-long trip to the Mexican-Cali- tory. preserve the moral security that has fornia border, where I had the oppor- In the first day of Olympic competi- made this Nation great. Just the other tunity to ride along with our Border tion, he has already garnered gold, the day, I had the chance to deliver the keynote address at an event for the Patrol agents. first for him and the United States in Tennessee Boy Scouts. I was impressed by the bravery of the these Olympics. Chad’s love for skating Mr. Speaker, in this job we do as Border Patrol agents who escorted me. started at age 2 in roller skates at his Members of Congress, there are times We personally saw a Border Patrol su- parents’ roller skating rink in Spring, when you speak to a group and you can pervisor pull an illegal alien off a 10- Texas. just feel that they are doing the right foot wall and arrest him despite his He grew up and became one of the things. The Boy Scouts fit in that cat- violent attempts to resist arrest. I wit- world’s most famous inline skaters, but egory. They are teaching our boys nessed another Border Patrol agent he switched to speed stating only 4 what it means to serve their commu- scale a 5,000-foot mountain at 2 in the years ago. Chad Hedrick is a contender nity. morning in freezing 30-degree weather for four more medals in the games in We are a Nation built on shared and single-handedly arrest and hand- Italy, and he is off to a spectacular moral values. Families across the cuff eight illegal aliens. start. country know that our communities The Border Patrol agent I rode with Although the rink and the type of are strong and that this country is told me that he had been shot at on skates have changed, this hometown strong when those values are respected several occasions. Twenty-three of his hero’s passion and talents have only and protected and preserved for future colleagues have been killed in the line gotten stronger throughout the years, generations. House Republicans know of duty since 1990. For example, Border and his passion was shown when he be- this, and we will be working here each Patrol agents Susan Rodriguez and Ri- came teary eyed when the Star Span- and every day to protect this Nation’s cardo Salinas were gunned down by a gled Banner played as he was awarded security. murder suspect. Agent Jefferson Barr the gold medal. f was shot to death by a drug trafficker. The entire State of Texas and the Na- I have a message for these brave Bor- tion congratulate Chad on this as- STUDENT AID der Patrol agents: the U.S. Congress tounding accomplishment, and we will (Mr. DOGGETT asked and was given knows you are there. We appreciate be cheering for him for the remainder permission to address the House for 1 your service, and help is on the way. of the games. As we say in Texas, get minute.) Mr. DOGGETT. I have just returned f ’er done, Chad. And that’s the way it is. from a joyful celebration at the White f CONGRATULATING THE NCAA House, not one about red or blue FOOTBALL CHAMPION TEXAS CUTS TO ENTITLEMENT States, but about burnt orange, brand- LONGHORNS PROGRAMS ed into the pages of sports history. (Mr. SMITH of Texas asked and was (Ms. SOLIS asked and was given per- As much as all of us can come to- given permission to address the House mission to address the House for 1 gether to celebrate the dramatic UT for 1 minute.) minute.) National Championship, I think that Mr. SMITH of Texas. Mr. Speaker, Ms. SOLIS. Mr. Speaker, today I rise supporting Longhorns and supporting for the second time in a row, the Uni- because I am deeply concerned with re- university students means much more. versity of Texas has won the Rose spect to the President’s budget, his It means providing a Federal financial commitment to our students to let Bowl. By any definition, the 2006 vic- proposed cuts to women and children. them achieve their individual great- tory was a classic and made the In particular, the budget of fiscal year ness. Longhorns the national champions. 2007 fails on all accounts and provides When qualified students cannot af- Led by quarterback Vince Young, the insufficient funding for our Nation’s ford to attend a university, all of us Longhorns fought their way to a stun- greatest investment, its children. lose. This President’s budget, as far as ning 41–38 victory over the top-ranked Domestic programs, as we know, are I can tell, is one big fumble. Because University of Southern California Tro- vital to women and children, particu- once again, added on top of the $12 bil- jans. larly the WIC program, which will see lion that Republicans have just cut in Vince Young ran for 200 yards, passed its funding decline by almost $5 billion Federal student financial assistance, for 267 and scored the winning touch- over the next 5 years. For low-income are additional cuts to Perkins loans down with 19 seconds left on the clock. families who rely solely on WIC to feed and to GEAR UP for those who are try- It does not get much better than that, their children and keep them healthy, ing to get into college. which is why Vince Young won the these cuts are simply unacceptable. For the students that I represent at Most Valuable Player trophy. We will see a continued rise in pov- the University of Texas-Pan American, UT Coach Mack Brown and the entire erty and food shortage among these who already face big financial chal- Longhorn football team have a special families. The President’s budget is also lenges, this burden is going to be a place deep in the hearts of all Texans. hurting women who work to provide great one. One in four of the students Through hard work, determination and for their families by cutting back on have dependent children and more than teamwork, the Longhorns beat the their health care. 75 percent are first-generation stu- odds and became an example for all of Despite the huge budget cuts made dents. I hope that we can make sub- us of what sportsmanship really means. already to the Medicaid program in the stantial changes and show a real com- Today, appropriately, the Longhorns budget reconciliation bill, the Presi- mitment to Longhorns and students were honored at the White House by dent proposes to slash another $17 bil- everywhere.

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00002 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — HOUSE H229 b 1415 Allegations that the NSA program is controlled President of Iran, continues MASHA’S LAW illegal are a myth. The reality is that to deny the horrors of the Holocaust the President’s authority to authorize and encourage the elimination of (Mr. GINGREY asked and was given this program is firmly based in both Israel. As his message of hatred and fa- permission to address the House for 1 his constitutional authority as Com- naticism grows louder each day, the se- minute and to revise and extend his re- mander-in-Chief and in the authoriza- riousness of his nuclear ambitions has marks.) tion for use of military force which become increasingly obvious. Mr. GINGREY. Mr. Speaker, I rise passed Congress after 9/11. Last week, the IAEA Board of Gov- today to share the heartbreaking story Allegations that the NSA program is ernors, including our allies, India, Can- of a 13-year-old girl in my district and a domestic eavesdropping program ada and Australia, voted overwhelm- to call for tougher penalties for child used to spy on innocent Americans are ingly to report Iran to the U.N. Secu- pornography. I have introduced, along with Rep- a myth. The reality is that this pro- rity Council. Although the Bush Ad- gram is narrowly focused, aimed only resentative TIERNEY, H.R. 4703, called ministration built a case for inter- Masha’s law after 13-year-old Masha at international calls and targeted at national unity, Iran’s President per- Allen, whose adoptive father posted al Qaeda and related groups. There are sists in his quest for nuclear weapons. pornographic images of her at age 5 on safeguards in place to protect the civil The U.N. must act quickly and strong- the Internet. Thankfully, law enforce- liberties of Americans. ly to hold Iran accountable for vio- ment officials tracked and convicted Allegations that NSA activities vio- lating the nuclear nonproliferation her father. Masha now lives in late the fourth amendment are a myth. treaty. Douglasville, Georgia, with a new and The reality is that that program is During the Cold War, Ronald Reagan loving adoptive parent. However, hun- consistent with the Constitution’s pro- advocated peace through strength. As dreds of her images are still on the tections of civil liberties, including the Iranian regime continues to under- Internet; and her photographs are some fourth amendment protections. mine peace and stability, leaders of of the most widely downloaded pictures There are people who want you to be- free nations must work together to se- in the world. lieve this program is targeting average riously address this grave threat. While Mr. Speaker, we absolutely must do Americans. Nothing could be further the Iranian president, chosen by a fixed something to harshly reprimand those from the truth. system, continues to pursue his agenda who produce, distribute and consume f of terror, the Iranian people deserve a brighter future of economic expansion, child pornography. Did you know that ROYALTY HOLIDAY FOR MAJOR not a warmongering leader. under current law the penalties for ille- OIL COMPANIES gally downloading music are three In conclusion, God bless our troops, (Mr. GEORGE MILLER of California times higher than the penalties for and we will never forget September 11. asked and was given permission to ad- downloading child pornography? This dress the House for 1 minute and to re- f is absurd and unjust. My legislation vise and extend his remarks.) would increase the statutory damages Mr. GEORGE MILLER of California. RUNAWAY SPENDING IN for victims of child exploitation and Mr. Speaker, Members of the House, WASHINGTON ensure victims can sue those who today in the New York Times Ameri- (Mr. PENCE asked and was given per- download their pictures. We must protect those who have no cans were told that not only had the mission to address the House for 1 way of protecting themselves from this Congress passed a royalty holiday for minute and to revise and extend his re- horrific and sickening crime, and I ask major oil companies but in the most marks.) that you join me in supporting Masha’s recent energy bill they had expanded Mr. PENCE. Mr. Speaker, the head- law. and extended that royal holiday. So we lines announcing one scandal after an- have the situation today where a bill, a other have grieved the heart of the f law that was passed many, many years American people and have eroded pub- WILLIE VAUGHN POST OFFICE ago when the price of energy was very lic confidence in our national govern- (Mr. DAVIS of Illinois asked and was low, has been kept on the book in spite ment’s commitment to governing of given permission to address the House of efforts to try and repeal it by myself the highest moral caliber. for 1 minute and to revise and extend and others. And now with world oil The Bible says that righteousness ex- his remarks.) prices in excess of $60 a barrel and the alts a nation, so the converse must also Mr. DAVIS of Illinois. Mr. Speaker, oil company profits of the majors at be true. So Congress is preparing to this weekend I had the fortune to at- historical record highs by all of the fight for ethics reform, not because tend a funeral in a small rural town in major oil companies, the Federal Gov- such scandals hurt our party but be- the southeast corner of Arkansas of a ernment is going to continue to pro- cause they do hurt the Nation. But as gentleman who was 101 years old. But vide a royalty holiday to those oil com- we reform our rules of ethics we will do the people in that town were all ex- panies that will cost us, at a minimum, so with the understanding that these cited and happy because one of our over $7 billion in the next 5 years and are but symptoms of the core problem. Members, Congressman MIKE ROSS, had maybe an additional 35 to $40 billion The real scandal in Washington, D.C., named the Post Office in that town over that same period of time. is runaway Federal spending. after this gentleman, Mr. Willie The time has come for Congress to Fiscal and moral integrity are in- Vaughn, who had worked and been stop this program, to insist upon the separable issues. So it is not enough to there almost a hundred years. I com- renegotiation of these leases; and if the change the way lobbyists spend their mend our colleague, Representative oil companies will not participate in money, Mr. Speaker. We must change MIKE ROSS, for making a lot of people that renegotiation they should not be the way Congress spends the people’s in Southeast Arkansas very happy. allowed to bid on Federal land owned money. Only by marrying budget re- f by the taxpayers of this country and form and ethics reform can we hope to continue to be able to rip off the tax- restore the confidence of the American MYTH VERSUS REALITY payers of this country. people in the fiscal and moral integrity (Ms. FOXX asked and was given per- f of our national legislature. mission to address the House for 1 minute.) INTERNATIONAL STRENGTH ON f Ms. FOXX. Mr. Speaker, since the IRANIAN REGIME revelation of the National Security (Mr. WILSON of South Carolina COMMUNICATION FROM THE Agency’s terrorist surveillance pro- asked and was given permission to ad- CLERK OF THE HOUSE gram, we have heard all sorts of dress the House for 1 minute and to re- The SPEAKER pro tempore (Mr. hysterics from the other side of the vise and extend his remarks.) ISSA) laid before the House the fol- aisle. I think now is the time to sepa- Mr. WILSON of South Carolina. Mr. lowing communication from the Clerk rate myth from reality. Speaker, Mahmoud Ahmadinejad, the of the House of Representatives:

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00003 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE H230 CONGRESSIONAL RECORD — HOUSE February 14, 2006 OFFICE OF THE CLERK, since the mid-1960s. The productivity of ago, we created Health Savings Ac- HOUSE OF REPRESENTATIVES, the United States is increasing faster counts (HSAs) to help give patients Washington DC, February 13, 2006. than any other major industrialized more control over their health care de- Hon. J. DENNIS HASTERT, country. The Speaker, House of Representatives, cisions and to make health care more Washington, DC. Productivity growth raises our available and affordable. This year, I DEAR MR. SPEAKER: Pursuant to the per- standard of living and plays a central am proposing to enhance HSAs to mission granted in Clause 2(h) of Rule II of role in our competitiveness in the make them more widely available, val- the Rules of the U.S. House of Representa- worldwide economy. Productivity uable to consumers, and attractive to tives, I have the honor to transmit a sealed growth will be even more important as small businesses—and to make it easier envelope received from the White House on new technologies accelerate global eco- for people to keep their insurance poli- February 13, 2006, at 3 p.m. and said to con- nomic integration and as the American cies when they change jobs. Last year, tain a message from the President whereby population ages. he submits the Economic Report of the we worked with Congress to pass a pa- President together with the 2006 Annual Re- We must now build on this funda- mental strength by making robust in- tient safety bill that will help reduce port of the Council of Economic Advisers. medical errors. Getting doctors and pa- With best wishes, I am vestments in physical sciences, im- Sincerely, proving private incentives for research tients the information they need on KAREN L. HAAS, and development, and boosting math the quality, cost, and effectiveness of Clerk of the House. and science education and worker different treatments will help Ameri- f training. The American Competitive- cans get the highest quality and high- ness Initiative will help us remain a est value care. This year, my Adminis- ECONOMIC REPORT OF THE PRESI- tration will push to make more infor- DENT—MESSAGE FROM THE world leader in science and technology, which means good high-paying jobs for mation about price and quality avail- PRESIDENT OF THE UNITED able to consumers, and move forward STATES (H. DOC. NO. 109–78) the American people. We must also continue to pursue pro- on these and other policies to lower the The SPEAKER pro tempore laid be- growth economic policies and foster a cost of health care. fore the House the following message culture of entrepreneurship. To adopt Out Nation’s liability laws allow too from the President of the United innovations effectively, our companies many frivolous lawsuits and raise costs States; which was read and, together and workers need the incentives and for consumers and businesses. A year with the accompanying papers, without flexibility that support a thriving free- ago, we worked with Congress to pass objection, referred to the Joint Eco- market economy. bipartisan class action reform to help nomic Committee and ordered to be Maintaining a low tax burden is es- printed: curb lawsuit abuse. I urge Congress in sential for our economic growth and the coming year to pass other essential To the Congress of the United States: competitiveness. Tax relief has helped legal reforms, including asbestos and The United States economy con- our economy, and raising taxes will in- medical liability reforms. tinues to demonstrate remarkable re- crease the burden on our families and silience, flexibility, and growth. Hav- small businesses. To keep our economy Energy prices have risen in the last ing previously endured a stock market growing, Congress needs to make the year, but the underlying causes of high collapse, recession, terrorist attacks, tax relief permanent. prices are long-standing. Last year, we and corporate scandals, this year the Two years ago, I called for cutting passed the first major energy bill in economy showed strong growth and ro- the budget deficit in half by 2009 by re- over a decade. It encourages new tech- bust job creation in the face of higher straining spending and spurring eco- nologies and updates government regu- energy prices and devastating natural nomic growth. Every year of my presi- lations. Over time, the new law will disasters. This is the result of the hard dency, we have reduced the growth of help increase the reliability of our en- work of America’s workers, supported non-security discretionary spending, ergy supply and the efficient use of the by pro-growth tax policies. and last year Congress passed bills that energy we have. We must continue to In 2005, the Nation’s real gross do- cut this spending. This year, my budg- find new ways to diversify our sources mestic product (GDP) grew 3.5 percent et will cut it again, and it will reduce of energy. I have proposed the Ad- for the year, above the historical aver- or eliminate more than 140 programs vanced Energy Initiative to help in- age. About 2 million payroll jobs were that are performing poorly or not ful- crease research in alternative energy added in 2005, and the unemployment filling essential priorities. By passing sources and technology and to make rate dropped to 4.7 percent last month, these reforms, we will save the Amer- America less dependent on foreign well below the averages of the 1970s, ican taxpayer another $14 billion next 1980s, and 1990s. Real disposable per- year, and we will stay on track to cut sources of energy. sonal income increased, and real house- the deficit in half by 2009. Because 95 percent of the world’s cus- hold net worth reached an all-time Controlling discretionary spending tomers live outside of our borders, high. This growth comes on top of an alone is not enough, however. We have opening international markets to our already strong expansion. More than recently passed significant savings in goods and services is critical for our 4.7 million payroll jobs have been mandatory spending programs. We economy. My Administration will con- added since August 2003. need to do more because the only way tinue to work tirelessly to open mar- Compared with the performance of to solve our Nation’s fiscal challenges kets and knock down barriers to free other nations’ economies, our eco- is to address the explosions in growth and fair trade so that American farm- nomic growth is especially impressive. of entitlement programs like Social ers and workers can compete on a level The United States has added more jobs Security, Medicare, and Medicaid. I playing field worldwide. in the past two-and-a-half years than have called for a bipartisan commis- Japan and the European Union com- sion to examine the full impact of the These and other issues are discussed bined. Real GDP growth in the United Baby Boom retirement and help us in the 2006 Annual Report of the Coun- States has been faster than in any come up with bipartisan answers. The cil of Economic Advisers. This report is other major industrialized country longer Congress waits to act, the more prepared by CEA to help policymakers since 2001, and America is forecasted to difficult the choices will become. understand the economic context of a continue as the fastest-growing coun- Working together, we accomplished variety of issues and trends as our Gov- try over the next two years. other significant pro-growth reforms ernment makes decisions regarding our Our economy’s fundamental strength that will help our Nation’s economy economic future. By adopting sound comes from the ingenuity and hard grow stronger and create more jobs. economic policies that build on our work of our workers. Productivity— More remains to be done. strengths, we will keep our economy how much workers produce per hour— Growth in spending on health care moving forward and extend prosperity has accelerated since 2000. In the past has been more rapid than general infla- for all Americans. five years, productivity has grown fast- tion, straining consumers, employers, GEORGE W. BUSH. er than in any other five-year period and government budgets. Two years THE WHITE HOUSE, February 2006.

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00004 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — HOUSE H231 COMMUNICATION FROM THE COMMUNICATION FROM THE OF- hours of service per year, in both peacetime CLERK OF THE HOUSE FICE OF THE 50TH DISTRICT OF and time of conflict; CALIFORNIA Whereas the USO plays an important role The SPEAKER pro tempore laid be- in contributing to the success of the Nation’s fore the House the following commu- The SPEAKER pro tempore laid be- military mission by providing a reliable pri- nication from the Clerk of the House of fore the House the following commu- vate connection directly supporting the mo- Representatives: nication from Nancy Lifset, Office of rale, welfare, and recreational needs of the members of the Armed Forces; and OFFICE OF THE CLERK, the 50th District of California: Whereas the crucial link to home provided HOUSE OF REPRESENTATIVES, CONGRESS OF THE UNITED STATES, Washington, DC, February 13, 2006. Washington, DC, February 8, 2006. by the USO is made possible through the generous contributions of more than 1,000,000 Hon. J. DENNIS HASTERT, Hon. DENNIS HASTERT, The Speaker, House of Representatives, Wash- Speaker of the House, House of Representatives, American citizens and scores of corpora- ington, DC. Washington, DC. tions: Now, therefore, be it Resolved by the House of Representatives (the DEAR MR. SPEAKER: Pursuant to the per- DEAR MR. SPEAKER: This is to notify you mission granted in Clause 2(h) of rule II of formally, pursuant to Rule VIII of the Rules Senate concurring), That Congress extends its the rules of the U.S. House of Representa- of the House of Representatives, that I have appreciation to the United Service Organiza- tives, the Clerk received the following mes- been served with a grand jury subpoena, tions, Incorporated (the USO), on its 65th an- sage from the Secretary of the Senate on issued by the U.S. District Court for the niversary and recognizes that the work of February 13, 2006, at 2:50 pm: Southern District of California, for testi- that organization in supporting the members That the Senate passed S. 2275. mony. of the Armed Forces and their families is a With best wishes, I am, After consultation with counsel, I have de- valued contribution to the success and mis- Sincerely, termined that compliance with the subpoena sion of the Armed Forces. KAREN L. HAAS, is consistent with the precedents and privi- The SPEAKER pro tempore. Pursu- Clerk of the House leges of the House. ant to the rule, the gentleman from Sincerely, f Florida (Mr. MILLER) and the gen- NANCY LIFSET, tleman from Texas (Mr. REYES) each COMMUNICATION FROM THE Office of the 50th District of California. will control 20 minutes. CLERK OF THE HOUSE f The Chair recognizes the gentleman The SPEAKER pro tempore laid be- MESSAGE FROM THE PRESIDENT from Florida. fore the House the following commu- A message in writing from the Presi- GENERAL LEAVE nication from the Clerk of the House of dent of the United States was commu- Mr. MILLER of Florida. Mr. Speaker, Representatives: nicated to the House by Ms. Wanda I ask unanimous consent that all Mem- OFFICE OF THE CLERK, Evans, one of his secretaries. bers may have 5 legislative days within HOUSE OF REPRESENTATIVES, which to revise and extend their re- f Washington, DC, February 13, 2006. marks and include extraneous material Hon. J. DENNIS HASTERT, ANNOUNCEMENT BY THE SPEAKER on the resolution currently under con- The Speaker, House of Representatives, Wash- PRO TEMPORE sideration. ington, DC. The SPEAKER pro tempore. Is there DEAR MR. SPEAKER: Pursuant to the per- The SPEAKER pro tempore. Pursu- mission granted in Clause 2(h) of rule II of ant to clause 8 of rule XX, the Chair objection to the request of the gen- the Rules of the U.S. House of Representa- will postpone further proceedings tleman from Florida? tives, the Clerk received the following mes- today on motions to suspend the rules There was no objection. sage from the Secretary of the Senate on on which a recorded vote or the yeas Mr. MILLER of Florida. Mr. Speaker, February 10, 2006, at 10:05 a.m.: and nays are ordered, or on which the I yield myself such time as I may con- That the Senate passed with an amend- vote is objected to under clause 6 of sume. ment H.R. 22. rule XX. Mr. Speaker, the United Service Or- That the Senate agreed to H. Con. Res 331. ganizations, established on February 4 That the Senate passed S. 2166. Record votes on postponed questions Appointment: will be taken after 6:30 p.m. today. of 1941, has become a national treasure. United States-China Economic Security f In every war and every theater of oper- Review Commission. ation since World War II where Ameri- With best wishes, I am, SENSE OF CONGRESS REGARDING cans have been deployed, the USO has Sincerely, THE CONTRIBUTION OF THE USO been there to entertain and to increase KAREN L. HAAS, TO OUR ARMED FORCES the morale and welfare of the men and Clerk of the House. Mr. MILLER of Florida. Mr. Speaker, women in the military and their fami- f I move to suspend the rules and agree lies. As the chairman of the USO Cau- to the concurrent resolution (H. Con. cus it is my pleasure to bring this reso- COMMUNICATION FROM RANKING Res. 322) expressing the Sense of Con- lution to the floor today. MEMBER OF COMMITTEE ON gress regarding the contribution of the When the organization was formed, WAYS AND MEANS USO to the morale and welfare of our the military was expanding rapidly for The SPEAKER pro tempore laid be- servicemen and women of our armed the impending conflict. Between 1940 fore the House the following commu- forces and their families, as amended. and 1944 the size of our military grew nication from the Honorable Charles B. The Clerk read as follows: from 50,000 to over 12 million. At its Rangel, Ranking Member, Committee H. CON. RES. 322 high point during the Second World on Ways and Means: Whereas the United Service Organizations, War the USO had over 3,000 clubs and HOUSE OF REPRESENTATIVES Incorporated (the USO), a nonprofit, chari- 1.5 million volunteers to provide serv- COMMITTEE ON WAYS AND MEANS, table organization, was founded in 1941 to ices to military personnel. On the en- Washington DC, February 13, 2006. provide morale and recreation services to tertainment side, the U.S. provided DEAR SPEAKER HASTERT: Pursuant to sec- military personnel and in 2006 is celebrating 428,521 shows and performances. To put tion 11142 of SAFETEA–LU (P.L. 109–59), I its 65th anniversary of service to United hereby appoint to the National Surface States servicemembers around the world; this figure into perspective around the Transportation Infrastructure Financing Whereas the USO is chartered by Congress world, the USO would do sometimes 700 Commission the following individuals: and is endorsed by the President and the De- shows a day. It estimates that over Mr. Elliot (Lee) Sander, Director of the partment of Defense to provide morale, wel- 7,000 entertainers were sent overseas to Rudin Center for Transportation Policy and fare, and recreation-type services to mem- entertain our troops. Management at New York University, and bers of the Armed Forces and their families; Today, USO facilities are visited over Senior Vice President and Director of Stra- Whereas the USO operates 124 centers 5 million times a year; and although tegic Development at DMJM Harris, of New around the world, including six mobile can- the USO does have a paid staff, the York City, New York. teens, through which support is provided to bulk of the service that they provide is Mr. Craig Lentzsch, CEO of Coach USA and members of the Armed Forces and their fam- KBUS Holdings, of Dallas, Texas. ilies, who visit those facilities more than through 12,000 volunteers who donate Sincerely, 5,000,000 times per year; over 450,000 hours annually. CHARLES B. RANGEL, Whereas the USO relies on over 33,000 vol- In 2005, the USO sent out over 50 ce- Ranking Member. unteers providing approximately 400,000 lebrity entertainment tours. Almost

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00005 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE H232 CONGRESSIONAL RECORD — HOUSE February 14, 2006 200,000 servicemembers in some 30 Bliss to serve both those currently sta- entertain and support our troops for countries were visited by these tours. tioned at Fort Bliss and also the nearly more than five decades. Bob Hope The USO has distributed over 750,000 20,000 soldiers who will be coming to El brought laughter and joy to thousands care packages to deploying service- Paso as part of the decision of BRAC of men and women deployed around the members, and last year they had three and the overseas rebasing troop move- world, and he and other entertainers care package stuffing parts right here ments. volunteered to entertain the troops on Capitol Hill for troops deploying to While we see every day the good both in the United States and abroad, Iraq and Afghanistan. I have helped things that the USO does for our sol- often under some of the most trying stuff packages myself, as have many diers, sailors, airmen, and marines, situations and conditions. other Members of Congress and their many Americans may not remember Today that same commitment and staff. We have to date stuffed and sent how the USO came into existence. The dedicated spirit lives on in the hun- 12,000 care packages. My goal is to in- year was 1941, and President Franklin dreds of entertainers that have volun- crease that number to 20,000 a year. It D. Roosevelt challenged six private or- teered and continue to support our de- is the least that we as Members of Con- ganizations to take responsibility for ployed troops in Operation Iraqi Free- gress can do. the leave recreation of the armed serv- dom and Operation Enduring Freedom, H. Con. Res. 322 will recognize the ices. The six organizations were the as well as other bases around the thousands of men and women, mostly Salvation Army; the Young Men’s world. volunteers, who have made the USO Christian Association, the YMCA; the Today the USO continues its out- possible, for without them the USO Young Women’s Christian Association, standing achievement under the lead- would not be half of what it is. the YWCA; the National Catholic Com- ership of president and chief executive Every time I have the opportunity to munity Services; National Travelers officer Ned Powell; chief of staff Sarah go overseas to Iraq, Afghanistan, to Aid Association; and the National Jew- Farnsworth; and senior staff, Michael Bosnia and other areas of operation ish Welfare Board. These six organiza- Farley, John Hanson, Keith Weaver, around the world, the men and women tions pooled their resources together Bruce Townsend, and Hilary Welch; tell me all the time, send us more USO and became known as the United Serv- and the contributions from the USO shows. ice Organizations, or more commonly World Board of Governors. These great referred to today as the USO. The USO people continue to help build and sus- b 1430 incorporated on February 4, 1941, and tain the USO. But the most critical Send us more of those USO care remains a private nonprofit organiza- component of the USO and what makes packages. To me, Mr. Speaker, that tion that is supported entirely by over it so special and what makes it so says that our USO continues to be the 1 million American citizens and hun- unique are the over 33,000 volunteers single most important morale booster dreds of corporations. and paid staff members who contribute to our men and women serving over- Back in its early days, USO facilities over 400,000 hours of service annually. seas. From the Second World War to were opened in such unlikely places as These are people that are the heart and Iraq, the USO has been there and is churches, log cabins, museums, castles, soul of the USO and provide direct there today, and we are here for the barns, beach clubs and yacht clubs, comfort and assistance to our troops men and women of the USO. railroad sleeping cars, and even some and their families, and I want to thank God bless them and the incredible storefronts. These USO facilities were them all and honor them for their serv- work that they do. many things to so many people, a place ice to our troops and their families. Mr. Speaker, I reserve the balance of to see movies or a place to dance and Congress also recognizes the impor- my time. meet people, a quiet place to talk or tant role that the USO plays in support Mr. REYES. Mr. Speaker, I yield my- write letters back home, a place to find of our servicemembers and their fami- self such time as I may consume. religious counsel, and always a place to lies; and to further provide support to Mr. Speaker, as co-chair of the USO go for free coffee and doughnuts. By the USO, it established the USO Con- Congressional Caucus, I join my col- 1944, the USO had more than 3,000 clubs gressional Caucus. As co-chair of the league and good friend, Congressman across the country. However, by 1947 caucus, I am pleased that over 150 of MILLER, on the House Armed Services the USO had all but disbanded. my colleagues have joined that effort Committee, who is our founding co- During the Korean war, the USO to enhance the outreach to our sol- chair of the USO Caucus, in support of eventually reopened 24 clubs world- diers, sailors, airmen, marines, coast House Concurrent Resolution 322. This wide; and during the conflict in Viet- guardsmen, and their families. resolution recognizes the 65th anniver- nam, the first USO opened in a combat So today, Mr. Speaker, I urge my col- sary of the United Service Organiza- zone. It is here where I can tell you, leagues to join me in support of this tions and extends Congress’s apprecia- Mr. Speaker, that I have personal great resolution. tion to the USO for 65 years of dedi- knowledge of just what the USO means Mr. Speaker, I reserve the balance of cated service in support of our Armed to a young soldier far away from home, my time. Forces and their families. bringing a little bit of home to a com- Mr. MILLER of Florida. Mr. Speaker, I have personally seen the impact of bat zone. I yield such time as he may consume to the USO on the lives of our Nation’s As the draw-down in Vietnam ended, the gentleman from South Carolina military during visits, as my colleague the USO began to provide new pro- (Mr. WILSON), a gentleman who has mentioned, to Iraq, Afghanistan, and grams to help servicemembers and three sons serving in our Armed Forces military facilities around the world. I their families transition back into ci- today, one of whom returned from serv- have also seen the work of the USO vilian life. With the current conflicts ice in Iraq last year. closer to home. The congressional care in Iraq and Afghanistan, the USO Mr. WILSON of South Carolina. Mr. package stuffing party, which was held opened its first center in Afghanistan, Speaker, I urge support for House Con- in the Rayburn foyer last September, the Pat Tillman USO Center, at current Resolution 322, and I appre- helped provide care packages stuffed by Bagram Air Base in 2005. Today there ciate the leadership of my Armed Serv- Members of Congress and our staffs for are more than 124 airport and family ices Committee seatmate JEFF MILLER soldiers deploying from the Conti- centers worldwide, located in 10 coun- for authoring the resolution. He and nental United States Replacement Cen- tries and 21 States. his wife, Vicky, are tireless advocates ter in my district at Fort Bliss, Texas. The USO is also recognized for its en- for our military heroes who protect Also at Fort Bliss in December, the tertainment effort on behalf of our American families. I am also grateful USO established a Wounded Warrior servicemembers and their families. In for the USO Caucus leadership of Con- Room at William Beaumont Army fact, one cannot recognize the USO and gressman JEFF MILLER and SYLVESTRE Medical Center, providing soldiers re- not remember that the most beloved REYES, two of the most dedicated Mem- covering from combat injuries a place and recognized entertainer, the great bers of Congress. to relax during their treatment. And Bob Hope, was part of the heart and Created in 1941 by the request of later this spring, the USO will open a soul of the USO. Bob Hope began his President Franklin D. Roosevelt, the new center on the main post of Fort first USO tour in 1942 and continued to United Service Organizations delivers

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00006 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — HOUSE H233 encouragement and optimism to our ploying service members. Last year the USO Ms. JACKSON-LEE of Texas. Mr. Speaker, brave men and women in uniform. The held three care package stuffing parties on I rise in support of H. Con. Res. 322, recog- USO is ably led by president and CEO Capitol Hill for troops deploying to Iraq and Af- nizing the importance of the United Service Ned Powell, who is a distinguished ghanistan, where Members of Congress and Organization’s (USO) many contributions and graduate of Washington and Lee Uni- Staff were able to assemble about 12,000 to their vital role in the betterment of the lives versity in Virginia. care packages. of our servicemen and women. Throughout the past six decades, the More than just entertainment, the USO also We are sending an increasing number of USO has evolved continuously to meet provides critical services such as ‘‘newcomer’’ soldiers, both enlisted and reserve, to serve in our soldiers’ needs during wartime and briefings for troops and family members and locations far from home, which shows that the peacetime. From operating clubs where new spouses; family crisis counseling and USO’s work is just as necessary today as it troops can meet, to sponsoring Bob support groups for families separated by de- was 65 years ago. In 1941, President Franklin Hope’s historic shows, the organization ployments; housing assistance; and nursery D. Roosevelt challenged 6 private organiza- has a tremendous record of providing facilities. tions to provide morale boosting support for critical comfort and aid to our service- Mr. Speaker, as co-chair of the House USO our servicemen and women. The USO has members. Today, with the help of 12,000 Caucus, it gives me great pride to rise in met that challenge head-on. volunteers providing nearly 450,000 strong support of this resolution and in support As a member of the congressional USO hours of service per year, the USO op- of the USO for all of the work they have done Caucus, and a member who has visited war erates 124 centers and six mobile can- for our military community and our nation. zones around the world throughout my years teens around the world. On the State Mr. EVANS. Mr. Speaker, I rise today in in Congress, I have seen evidence of the level, we have had outstanding pro- strong support of H. Con. Res. 322, acknowl- services they provide our soldiers and the grams such as in South Carolina with edging the contributions of the United Service value of these welcoming facilities. Redd Reynolds entertaining National Organization to the morale and welfare of the The organization is well-know for inviting Guard troops. servicemen and women of our armed forces Hollywood entertainers to perform concerts, I am proud to join Congressman JEFF and their families. boosting morale, and providing temporary re- It is with great honor I join Congressman MILLER and Congressman SYLVESTRE prieve from the daily stresses of their profes- REYES and my fellow colleagues in supporting REYES in congratulating the USO for sion. However, the USO provides more than its 65th anniversary of dedicated serv- the United Service Organization (USO), an or- just mere entertainment for the armed serv- ganization I know well as a Vietnam-era Ma- ice. As American soldiers risk their ices, offering less publicly known programs, rine. The USO was formed in response to a lives in the war on terrorism to protect such as crisis counseling and support groups 1941 request from President Franklin D. Roo- American families, the USO’s mission for both military personnel and their families. sevelt for the purpose of providing the men is more important than ever. I appre- The USO operates 124 of these facilities and women of the Armed Forces with comfort, ciate the USO firsthand from my around the world, including 49 overseas. As a hospitality, and recreation. The USO continues knowledge as a Member of Congress, a testament of their good work and its commit- to successfully fulfill this mission in collabora- 31-year veteran, and as the parent of ment to expanding its efforts, the USO just tion with the U.S. government and numerous three sons currently serving in the opened its newest facility in Kuwait, just two private organizations. military. Since the opening of the first center in 1963, weeks shy of the organization’s 65th birthday. In conclusion, God bless our troops the USO has grown to over 120 centers world- This center is the 6th in the Persian Gulf re- and we will never forget September 11. wide, ranging from Seattle, Washington to gion, showing that the organization has contin- Mr. EDWARDS. Mr. Speaker, I rise in Seoul, Korea. Annually, 12,000 volunteers do- ued with its tradition of providing support strong support of this resolution and thank my nate 450,000 hours of their time assembling where support is needed, be that at home, or colleagues from Florida and Texas for intro- and delivering over 750,000 care packages to halfway around the world. ducing it. deployed service members. Last year, Mem- For soldiers unable to meet their families at Established on February 4, 1941, at the di- bers of Congress and their staff participated in a facility, the organization reaches out pro- rection of President Roosevelt and chartered three care package stuffing events that as- viding phone cards and care packages, so by Congress in 1979, the USO has long pro- sembled about 12,000 packages for troops de- that at the very least, they can hear a familiar vided generously for the morale and welfare of ploying to Iraq and Afghanistan. and soothing voice, and enjoys a taste of our troops. Through their various programs, As our military continues to grow and home. events and campaigns, the USO extends a change, the mission of the USO also con- The USO’s charter may be signed into law, touch of home to the men and women of our tinues to expand and incorporate new ideas to but it still operates as a non-profit, charitable nation’s military. The USO benefits from the better serve our servicemen and women. In organization relying on both private contribu- generosity of many Americans, as the bulk of 2003, the USO began ‘‘Operation Phone tions and support of volunteers. Thankfully, the service delivery is provided by 12,000 vol- Home,’’ which distributed over one million pre- the organization is in no short supply of either unteers who donate over 450,000 hours annu- paid phone cards to our troops, enabling them with scores of companies and 33,000 volun- ally. to communicate with family members while teers offering their support. The USO serves Funded through the generous contributions stationed overseas. as the bridge between concerned citizens of the American people, organizations and The most well-known programs sponsored wanting to make a difference, and our service- corporations, the USO operates 124 centers by the USO are the Celebrity Entertainment men in need of assistance. With that said, I worldwide and 6 mobile canteens. With over- shows, which have proven to be an effective can not understate the value of the organiza- seas centers located in Germany, Italy, morale booster. In 2005, the USO sent over tion’s work in enhancing both the lives of sol- France, the United Arab Emirates, Bahrain, 50 celebrity entertainment tours in 30 coun- diers on the ground, and their families’ safe at Iceland, Bosnia, Japan, Qatar, Korea and Ku- tries, which were attended by almost 200,000 home. For all of the aforementioned reasons I wait; the USO has built an extensive net- service members. Longtime USO entertainer, hope my colleagues will vote to recognize the work—with service members and their families Bob Hope, is perhaps the most memorable many contributions the USO has made in en- visiting USO centers more than 5 million times advocate of the USO. His legacy continues to hancing the lives of our soldiers. each year. inspire and attract celebrities, entertainers, Ms. BORDALLO. Mr. Speaker, I rise to Many of us in this Chamber have partici- and the American people to donate their time today in support of House Concurrent Resolu- pated in or witnessed firsthand the good work and talents in support of the troops. tion 322 to recognize the outstanding contribu- done by the USO for many of our constituents. The USO provides a channel for American tions of the United Service Organization Since 2003 the USO has distributed over 1 citizens to express appreciation and admira- (USO) to the morale and welfare of our serv- million prepaid phone cards as part of Oper- tion to those who bravely defend the United icemen and women in the U.S. Armed Forces ation Phone Home. The cards have been dis- States overseas, and to let our military men and their families. I also take this occasion to tributed in Iraq, Afghanistan, hospitals, and and women know they are cared for and not commend the USO upon their 65th anniver- even to service members impacted by Hurri- forgotten. The USO embodies the generous sary. cane Katrina. In 2005 the USO sent out over spirit of the American people and their unwav- The USO has served as a source of sup- 50 celebrity entertainment tours. Almost ering support for our servicemen and women. port, entertainment, and morale for American 200,000 service members in 30 countries On the 65th Birthday of the USO, I, sincerely troops since its chartering in 1941. Established were visited by these tours. Additionally, over extend my thanks for providing so much sup- at the request of President Franklin Delano 750,000 care packages were delivered to de- port and comfort to our Armed Forces. Roosevelt, the USO has served our Nation’s

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00007 Fmt 4634 Sfmt 9920 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE H234 CONGRESSIONAL RECORD — HOUSE February 14, 2006 servicemen and women ever since. I com- ganizations, whose world headquarters are lo- SUPPORTING THE GOALS AND mend the efforts of those six civilian agen- cated in my district and this year will celebrate IDEALS OF A DAY OF HEARTS, cies—the Salvation Army, Young Men’s Chris- its 65th anniversary of serving the men and CONGENITAL HEART DEFECT tian Association, Young Women’s Christian women of our armed forces. DAY Association, National Catholic Community At the direction of President Franklin D. Mrs. MILLER of Michigan. Mr. Service, National Travelers Aid Association Roosevelt the USO was formed in 1941 as a and the National Jewish Welfare Board—that Speaker, I move to suspend the rules means of promoting troop morale by providing and agree to the resolution (H. Res. came together in support of our troops in cre- entertainment, recreation and support. Relying ating the USO, bringing about its official incor- 629) supporting the goals and ideals of solely on charitable contributions and the gen- a Day of Hearts, Congenital Heart De- poration in New York on February 4, 1941. erosity of individuals, the USO has served The USO has strong ties to Guam. Bur- fect Day in order to increase awareness troops in each American conflict since World about congenital heart defects, and for geoning with U.S. military personnel following War II. the liberation of the island, the USO first came other purposes. Perhaps at its most well known during to Guam in the early 1950s. Delivering enter- The Clerk read as follows: World War II, the USO provided over 400,000 tainment and laughs to those serving on shows and performances to our armed forces, H. RES. 629 Guam, the USO’s work on Guam was but a sending 7,000 performers overseas and per- Whereas congenital heart defects are struc- small glimpse of its work lifting the morale of forming as many as 700 shows in a single tural problems with the heart that are servicemen and women around the world. day. It was during this time that the great Bob present at birth; The combat zones of the past included Whereas such defects range in severity Korea, Vietnam and Kuwait. Today the USO Hope first performed for our soldiers. His fa- mous USO career spanned six decades, from simple problems, such as ‘‘holes’’ be- brings entertainment to our men and women tween chambers of the heart, to very severe serving in Iraq, Afghanistan and the Horn of headlining over 60 tours and delivering count- malformations, such as the complete absence Africa among many other places. For 65 less one-liners. In 1997, the USO successfully of one or more chambers or valves of the years, wherever you found America’s military, worked with Congress to designate Bob Hope heart; you found the USO, no matter the location or the first honorary veteran of the U.S. armed Whereas more than one million Americans the danger. forces. have some form of a congenital heart defect The USO not only brings entertainment, a Today the USO is still going strong. In 2005, and such defect is the number one cause of the USO sponsored over 50 celebrity enter- death in infants; piece of home and a smile to troops deployed Whereas out of 1000 births, eight babies abroad through its shows, but serves as a tainment tours, visiting nearly 200,000 service will have some form of a congenital heart ‘‘home away from home’’ for servicemen and members in over 30 countries. The volunteer disorder, and approximately 35,000 babies are women in 124 centers around the world. I am base has grown to over 12,000 people who born with such defects each year; pleased to state that this proud tradition will donate over 450,000 hours of service each Whereas twice as many children die each soon be resurrected on Guam. The USO will year. year from congenital heart disease compared re-open its Guam branch on March 23, 2006. The USO, however, provides more than just with childhood cancers, yet funding for pedi- With the military presence on Guam steadily uplifting entertainment to our troops. Over atric cancer research is five times higher growing, the USO has once more answered than such funding for congenital heart dis- 750,000 handmade care packages were sent ease; the call to service. With growing unease in to service members deploying to Iraq and Af- Whereas cardiovascular disease is the Na- Asia, the strategic location of Guam is increas- ghanistan last year. Additionally, the USO has tion’s leading killer in both men and women ingly valued. The men and women who serve made communication to the home front more among all racial and ethnic groups; on the island provide stability to the region affordable and accessible through the Oper- Whereas the United States has a severe and security to our Nation. The USO will once ation Phone Home which distributed over one shortage of cardiac centers that are fully again ensure that these men and women, their million prepaid phone cards to deployed equipped to provide care for adults living families and their guests nonetheless always troops. with complex heart defects; Whereas almost one million Americans die have the support they need. No doubt this All of this would not be possible were it not branch will also bring to Guam many of the of cardiovascular disease each year, result- for the dedication of the USO staff and volun- ing in up to 42 percent of all deaths in the USO’s trademark shows. teers who so graciously give their time and United States; Let me take this chance to say, on behalf of energy to help those who are defending our Whereas the presence of a serious con- the people of Guam, welcome back to the Nation. Mr. Speaker, I ask that you join me in genital heart defect often results in an enor- USO. As we say on Guam, Hafa Adai and Si commending the USO and its members for all mous emotional and financial strain on Yu’os Ma’ase (thank you) for their work. of their work and in congratulating them on 65 young families who are already in a vulner- Our Nation enjoys a spirit of brotherhood, of able stage of their lives; service and of charity that is a reflection of a years of dedicated services to our troops. Whereas severe congenital heart disease national value of selfless service. The USO Mr. REYES. Mr. Speaker, I have no requires that families dedicate extensive fi- embodies this national value. And the people further requests for time, and I yield nancial resources for assistance and care who are the USO live this national value. Over back the balance of my time. both within and outside of a hospital envi- ronment; 12,000 volunteers donate over 450,000 hours Mr. MILLER of Florida. Mr. Speaker, I have no further requests for time, and Whereas congenial heart defects exceed annually thereby allowing the USO to serve more than $2.2 million a year for inpatient our Nation’s greatest servants. Not to be for- I yield back the balance of my time. surgery alone; and gotten are the celebrities and entertainers that The SPEAKER pro tempore (Mr. Whereas February 14, 2006, would be an ap- often headline USO tours, lending their time ISSA). The question is on the motion of- propriate day to recognize A Day for Hearts: and talents to honor those people who provide fered by the gentleman from Florida Congenital Heart Defect Awareness Day: them the very opportunity to live the American (Mr. MILLER) that the House suspend Now, therefore, be it dream they have realized. And providing the the rules and agree to the concurrent Resolved, That the House of Representa- foundation upon which the USO can operate resolution, H. Con. Res. 322, as amend- tives supports the goals and ideals of A Day are countless thousands of U.S. donors, both ed. of Hearts: Congenital Heart Defect Aware- ness Day to— private and corporate, who make giving a cen- The question was taken. terpiece of their lives. (1) increase awareness about congenital The SPEAKER pro tempore. In the heart defects; I join my colleagues in commending the opinion of the Chair, two-thirds of (2) encourage research with respect to the USO and all of the men and women who over those present have voted in the affirm- disease; and time and who now make up this great organi- ative. (3) support the millions of Americans who zation for the service they provide to those are affected by this disease. who serve our Nation in uniform. Like our mili- Mr. MILLER of Florida. Mr. Speaker, tary men and women, you too are heroes. You on that I demand the yeas and nays. The SPEAKER pro tempore. Pursu- are what makes America great. God Bless the The yeas and nays were ordered. ant to the rule, the gentlewoman from USO, God Bless our men and women serving The SPEAKER pro tempore. Pursu- Michigan (Mrs. MILLER) and the gen- around the world today and God Bless Amer- ant to clause 8 of rule XX and the tleman from Illinois (Mr. DAVIS) each ica. Chair’s prior announcement, further will control 20 minutes. Mr. MORAN of Virginia. Mr. Speaker, I rise proceedings on this question will be The Chair recognizes the gentle- today to pay tribute to the United Service Or- postponed. woman from Michigan.

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00008 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — HOUSE H235 GENERAL LEAVE congenital heart defect, or CHD. CHDs So I am proud to stand today and Mrs. MILLER of Michigan. Mr. are the number one killer of infants in present and support H. Res. 629, a reso- Speaker, I ask unanimous consent that the United States, and while treatment lution that will identify today, Valen- all Members may have 5 legislative is available for many of these defects, a tine’s Day 2006, as a Day of Hearts, days within which to revise and extend number of them are not treatable. Congenital Heart Defect Awareness their remarks and include extraneous Sadly, too, many families lack the re- Day. material on the resolution under con- sources necessary to obtain proper What is a congenital heart defect? sideration. treatment for even the most common Well, congenital means it is present at The SPEAKER pro tempore. Is there and easily treatable defects. birth, so it is an abnormality that is objection to the request of the gentle- Because CHDs are long-term or often present at birth. It is a birth defect. It woman from Michigan? lifelong afflictions, the life of a child is a birth defect of the heart. It is a There was no objection. who survives a CHD is made more dif- birth defect, though, that we don’t Mrs. MILLER of Michigan. Mr. ficult by restricted behavior and the la- often hear about. Speaker, I yield myself such time as I borious effort needed to carry out the It occurs during the development of may consume. daily tasks of life. the heart, which begins for a baby H. Resolution 629, offered by the dis- A Day of Hearts is an international shortly after conception. These defects tinguished gentleman from Georgia effort to raise awareness of this all-too- can involve the walls of the heart, or (Mr. PRICE), would support the goals common problem. CHD lacks the visi- the valves of the heart, or the blood and the ideals of a Day of Hearts, Con- bility of some of the diseases we all vessels, the arteries and veins that sup- genital Heart Defect Day. know well, yet the effects are no less ply the heart itself. They are often able Today in the United States, heart tragic. Much progress needs to be made to disrupt the normal flow of blood in disease and stroke, the basic compo- in fighting the disease and in finding the heart, slowing that blood down or nents of cardiovascular disease, are the and funding facilities that are dedi- having it flow in the wrong direction or first and third leading causes of death cated to cutting-edge research related wrong place, or it might even block the for both men and women, accounting to all aspects of CHDs, especially fac- flow of blood altogether. They also can for nearly 40 percent of all deaths. Over tors that contribute to their occur- be conduction defects, defects that 900,000 Americans die of cardiovascular rence. make it so the heart doesn’t beat in disease each year, Mr. Speaker, which In addition, developing countries are the correct way. amounts to a death every 34 seconds. far behind the developing world in More than 35,000 infants, about one Even though this dangerous disease at- treating CHDs. Defects that are easily out of every 150 births, are born with tacks those over the age of 65 most treatable here in the United States can heart defects every single year; and commonly, the number of sudden be killers in those countries, and our these defects can be very minimal in deaths from heart disease among peo- sense of humanity can no longer tol- nature and not even be noticed by the ple between the ages of 15 and 34 has erate easily preventible deaths from family or the child or the physicians, CHDs. increased dramatically. or they can be life-threatening. Heart Along with the individual effects of Mr. Speaker, February 14 is a day defects are among the most common this vastly growing disease, there is that many people around the world as- birth defects, and they are the leading also a widespread economic impact. sociate with love and companionship, cause of birth defect-related deaths in The U.S. health care system continues and the enduring symbol of Valentine’s Day is the heart. I can think of no day the United States. to be hit with the cost of heart disease The good news is that with signifi- more appropriately tailored towards and stroke in the U.S. Coronary heart cantly improving treatment over the disease is the leading cause of perma- raising the public’s awareness of CHDs than Valentine’s Day. Therefore, I join past few decades there are now more nent disability in the U.S. workforce, adults living with congenital heart de- and there are over 6 million hos- in support of this important resolution and call upon all of my colleagues to fects than ever before, having been pitalizations each year due to this dis- treated in their infancy for those de- ease. As our population ages, the cost support this effort so that hopefully we will generate the kind of awareness and fects. And this means that there are of heart disease and stroke was pro- new medical challenges that we as a so- jected to be $394 billion in 2005, last the kind of resources that are nec- essary to fight this tragic and debili- ciety will confront, and confront them year, which includes health care ex- we will. penditures and lost productivity from tating illness. Mr. Speaker, I yield back the balance So it is perfectly fitting and appro- death and disability. priate that we pause today and recog- Mr. Speaker, I would ask all Mem- of my time. Mrs. MILLER of Michigan. Mr. nize Congenital Heart Defect Aware- bers to support H. Resolution 629 with ness Day in order to do three specific the hope that, because cardiovascular Speaker, I yield such time as he may consume to my distinguished colleague things: One is to increase the aware- disease is preventable, increased ness of congenital heart defects; two is awareness and research could enable us from the State of Georgia (Mr. PRICE). Mr. PRICE of Georgia. Mr. Speaker, I to encourage research with respect to as Americans to cut down on the un- thank the chairwoman for allowing me this disease; and, three, to support the necessary deaths due to this disease to speak on this issue. I appreciate her millions of Americans who are affected each year in our country. by this disease. Mr. Speaker, I reserve the balance of leadership in this. I want to thank my So I join with the others and ask my my time. Georgia colleagues and all colleagues on both sides of the aisle who have as- colleagues to support this resolution b 1445 sisted in supporting this endeavor. and join me in wishing Sarah Anne Mr. DAVIS of Illinois. Mr. Speaker, I Mr. Speaker, I rise today to wish a Voyles, and all Americans living with yield myself such time as I may con- happy Valentine’s Day to Sarah Anne congenital heart defects, a very happy sume. Voyles. Sarah is a 15-year-old young Valentine’s Day and a Day of Hearts (Mr. DAVIS of Illinois asked and was lady who happens to live in my dis- for Congenital Heart Defect Day. given permission to revise and extend trict. She is a special young lady who Mrs. MILLER of Michigan. Mr. his remarks.) just happened to be born with a con- Speaker, I yield such time as he may Mr. Speaker, I rise in strong support genital heart defect who brought this consume to my distinguished colleague of the resolution to recognize the goals whole issue to my attention. from the State of Nebraska (Mr. and ideas of a Day of Hearts, and I As a physician, I practiced for nearly FORTENBERRY). commend the gentleman from Georgia 20 years in my community and I under- Mr. FORTENBERRY. Mr. Speaker, I for making use of Valentine’s Day as a stand the medical importance of being thank Dr. Price and my other col- way of highlighting and bringing able to treat congenital heart defects. leagues who have cosponsored this Day awareness to one of our major health But as a Member of Congress the issue of Hearts resolution, recognizing con- problems and health issues. becomes all that more important as we genital heart defects and the impact Every year, eight out of every 1,000 work to bring attention to this re- they are having on American society children are born with some form of markable challenge. and American families.

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00009 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE H236 CONGRESSIONAL RECORD — HOUSE February 14, 2006 As has been mentioned, approxi- not to mention your ability to enjoy your life (b) REFERENCES.—Any reference in a law, mately 35,000 babies are born each year and live it to the fullest. map, regulation, document, paper, or other with some variety of a congenital heart Estimates suggest that about 1 million record of the United States to the facility re- defect. Five years ago, my wife Celeste ferred to in subsection (a) shall be deemed to Americans have a congenital heart defect. If be a reference to the ‘‘Raymond J. Salmon and I had a beautiful baby girl, and we time in the hospital and recuperating from Post Office’’. named her Kathryn, and she was one of heart conditions could be measured in years The SPEAKER pro tempore. Pursu- those 35,000 babies. She was diagnosed of life, over 91,000 life years are lost each ant to the rule, the gentlewoman from shortly after her birth with a complete year in the US due to congenital heart dis- Michigan (Mrs. MILLER) and the gen- atrial ventricular septal defect. ease. For inpatient surgery alone, charges for tleman from Illinois (Mr. DAVIS) each It was a normal birth. Afterward, care exceed $2.2 billion every year. will control 20 minutes. during a regular checkup, our family Even our most vulnerable and innocent citi- The Chair recognizes the gentle- doctor heard something that almost zens are not exempt from the risk of heart dis- woman from Michigan. jumped through his stethoscope. As we ease: around 35,000 babies are born with a later found out, he was holding back heart defect each year. Out of 1,000 births, 8 GENERAL LEAVE his own emotion as he heard this. So babies will have some form of congenital heart Mrs. MILLER of Michigan. Mr. that launched us then on a path, a very disorder, although for the most part, these are Speaker, I ask unanimous consent that intense, difficult, 3-month period, until mild. Severe heart disease generally becomes all Members may have 5 legislative she had her first surgery. apparent during the first couple of months days within which to revise and extend But one of the most encouraging after birth. Doctors know to watch for certain their remarks and include extraneous things that happened for us then were clues, including when babies are born blue, material on H.R. 4152. other parents who found out we were have very low blood pressure, breathing dif- The SPEAKER pro tempore. Is there suffering through this and who took ficulties, feeding problems, or poor weight objection to the request of the gentle- initiative to call us, to extend a hand gain. In addition, most minor defects are diag- woman from Michigan? of friendship. Because when this hap- nosed on a routine medical check up. There was no objection. pens to you, your world spins around We’ve made significant improvements in the Mrs. MILLER of Michigan. Mr. 360 degrees. It is very hard to know treatment of congenital heart conditions, from Speaker, I yield myself such time as I who to turn to and where to go. So the preventive treatment, to surgery, to research, may consume. support network of parents who simply to education and outreach. In the 1960s and Mr. Speaker, H.R. 4152, offered by the took their own initiative to contact us 1970s the risk of dying following congenital distinguished gentleman from Massa- was very deeply meaningful and helped heart surgery was about 30 percent and today chusetts (Mr. MCGOVERN), would des- us through this very difficult time. it is around 5 percent. ignate the post office building in Clin- Kathryn, as many of your saw this However, recent statistics show that heart ton, Massachusetts, as the Raymond J. past weekend, is a very vibrant, happy, disease is still the No. 1 killer of American Salmon Post Office. 5-year-old. She wears a pacemaker, women, and heart failure is on the rise in the On April 16, 1923, Raymond J. Salmon which obviously causes some security elderly. This bill is relevant and timely, and a was born in the town of Clinton, Mas- difficulties here and there, but, none- noble effort to bring much needed awareness sachusetts. In his younger years, Ray theless, we are grateful to the advances and crucial outreach to men, women and chil- served his country as a Technical Ser- that medicine has given us in the last dren across the Nation. Knowledge can make geant in the U.S. Army in World War 30 years to be able to deal successfully all the difference in quality of life, and a Day II. In 1950, he began his political career with this form of defect. of Hearts is the perfect way to start the con- by working for Congressman Phillip I am just really thankful that Con- versation and spread the word. Philbin of Clinton, Massachusetts, and gress is taking the initiative today to Mrs. MILLER of Michigan. Mr. served as his Chief of Staff until 1970. actually propose a Day of Hearts, not Speaker, I yield back the balance of While working on Capitol Hill, Ray only to bring more emphasis to the my time. managed to complete law school and be issue, because it does affect so many The SPEAKER pro tempore (Mr. admitted to the bar in 1952. After several years as a sole practi- families, but to potentially help spur ISSA). The question is on the motion of- additional research into the potential fered by the gentlewoman from Michi- tioner, Ray was appointed the Clerk Magistrate of Clinton District Court in of finding a cure, or at least helping gan (Mrs. MILLER) that the House sus- parents who have to deal with the man- pend the rules and agree to the resolu- 1976, and he remained in this position agement of this issue for a lifetime. tion, H. Res. 629. until his retirement in 2000. Thank you, Dr. Price, for proposing The question was taken; and (two- His service in this capacity did not this; thank you to my other colleagues thirds having voted in favor thereof) go unnoticed by his community. He who have cosponsored this; and I urge the rules were suspended and the reso- was loved and revered by the citizens of passage of H.R. 629. lution was agreed to. Clinton, and he remained involved in Mrs. MILLER of Michigan. Mr. A motion to reconsider was laid on many other community activities. He Speaker, I yield myself such time as I the table. was a member of the Knights of Colum- may consume. bus, the American Legion, Turner Vet- Mr. Speaker, I think it is especially f erans, the Polish American Veterans, appropriate that today on Valentine’s RAYMOND J. SALMON POST the Hibernian AOH Master of Cere- Day, when we celebrate love and affec- OFFICE monies, President of the National Ex- tion from the bottom of our hearts, Mrs. MILLER of Michigan. Mr. change Club, Exalted Ruler of the Clin- that this House passes a resolution Speaker, I move to suspend the rules ton Lodge of Elks and President of the that seeks to provide protection from and pass the bill (H.R. 4152) to des- Clinton Democratic Town Committee. our hearts being damaged from disease. ignate the facility of the United States It is an honor and privilege to be able I urge all Members to support the adop- Postal Service located at 320 High to recognize such an unselfish and giv- tion of H. Res. 629. Street in Clinton, Massachusetts, as ing member of the community by pass- Ms. JACKSON-LEE of Texas. Mr. Speaker, the ‘‘Raymond J. Salmon Post Office’’. ing H.R. 4152 and recognizing the ef- today I rise in support of H. Res. 629, sup- The Clerk read as follows: forts of such a committed individual. porting the goals and ideals of a Day of Mr. Speaker, I reserve the balance of H.R. 4152 Hearts, Congenital Heart Defect Day in order my time. to increase awareness about congenital heart Be it enacted by the Senate and House of Rep- Mr. DAVIS of Illinois. Mr. Speaker, I resentatives of the United States of America in yield myself such time as I may con- defects. I think it’s fitting that on Valentine’s Congress assembled, Day, we can discuss a resolution that will help sume. SECTION 1. RAYMOND J. SALMON POST OFFICE. protect our hearts. Mr. Speaker, as a member of the Gov- (a) DESIGNATION.—The facility of the Heart disease can affect every aspect of United States Postal Service located at 320 ernment Reform Committee, I am your life: your ability to work, your ability to get High Street in Clinton, Massachusetts, shall pleased to join my colleague in the adequate insurance, your ability to exercise or be known and designated as the ‘‘Raymond consideration of H.R. 4152, legislation play sports, and your ability to have children, J. Salmon Post Office’’. naming a postal facility in Clinton,

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00010 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — HOUSE H237 Massachusetts, after Raymond Salmon. tion is on the motion offered by the kind word. She was known for her abil- This measure, sponsored by Represent- gentlewoman from Michigan (Mrs. MIL- ity to sort through thousands of letters ative JAMES MCGOVERN of Massachu- LER) that the House suspend the rules and parcels, identifying each name setts, was unanimously reported by our and pass the bill, H.R. 4152. with a face, never letting down those committee on November 16, 2005. H.R. The question was taken; and (two- who relied on her. In fact, Holly 4152 has the support and cosponsorship thirds having voted in favor thereof) Charette was quoted as saying, I never of the entire Massachusetts delegation. the rules were suspended and the bill really thought too hard about being a Mr. Salmon, a native of Massachu- was passed. mail person, but it is really an impor- setts, was a graduate of Clinton public A motion to reconsider was laid on tant job and people depend on me. schools, Saint Michael’s College in the table. There are a lot of stresses involved, Vermont and Suffolk University Law f but it is really worth it at the end of School. He was a congressional staffer the day. After her service in the mili- who worked for former representative HOLLY A. CHARETTE POST OFFICE tary, Charette had planned to apply at Phillip Philbin from 1950 to 1970. He Mrs. MILLER of Michigan. Mr. the U.S. Postal Service, where she was a veteran and an attorney seri- Speaker, I move to suspend the rules could continue to serve the citizens of ously and actively involved in many and pass the Senate bill (S. 1989) to des- the United States. About her future aspects of community life in the neigh- ignate the facility of the United States plans, she stated, It will not be the borhood and community where he Postal Service located at 57 Rolfe same as being a marine, but at least I lived. He gave a great deal of himself Square in Cranston, Rhode Island, shall am still in uniform. for the benefit of others with consist- be known and designated as the ‘‘Holly I would urge all Members to come to- ency and regularity. A. Charette Post Office.’’ gether and to honor this dedicated I am pleased, Mr. Speaker, to urge The Clerk read as follows: young woman in her efforts to serve the swift passage of this bill. S. 1989 our country. I thank Senator REED for Mr. MCGOVERN. Mr. Speaker, I want to Be it enacted by the Senate and House of Rep- his diligence in bringing this important thank Chairman TOM DAVIS and Ranking resentatives of the United States of America in measure forward. Member HENRY WAXMAN of the House Gov- Congress assembled, Mr. Speaker, I reserve the balance of ernment Reform Committee for their leader- SECTION 1. HOLLY A. CHARETTE POST OFFICE. my time. ship on moving this important resolution (a) DESIGNATION.—The facility of the Mr. DAVIS of Illinois. Mr. Speaker, I through the committee and to the House floor United States Postal Service located at 57 yield such time as he may consume to for its consideration today. Rolfe Square in Cranston, Rhode Island, the gentleman from Rhode Island (Mr. I rise today in strong support of H.R. 4152, shall be known and designated as the ‘‘Holly LANGEVIN). which would designate the United States Post- A. Charette Post Office’’. (Mr. LANGEVIN asked and was given al Facility at 320 High Street in Clinton, Mas- (b) REFERENCES.—Any reference in a law, permission to revise and extend his re- sachusetts as the Raymond J. Salmon Post map, regulation, document, paper, or other marks.) Office. record of the United States to the facility re- Mr. LANGEVIN. Mr. Speaker, last Mr. Speaker, by designating this Federal ferred to in subsection (a) shall be deemed to June I had the sad duty of coming to be a reference to the ‘‘Holly A. Charette Post the floor to announce the loss of a post office today, we honor a great American. Office’’. Raymond J. Salmon was born on April 16, brave marine in Iraq, Lance Corporal 1923 in the small town of Clinton, MA. As a The SPEAKER pro tempore. Pursu- Holly Ann Charette, a citizen of Cran- young man, Ray responded to the call of duty ant to the rule, the gentlewoman from ston, Rhode Island. during World War II and became a member of Michigan (Mrs. MILLER) and the gen- Today, I am proud to honor her serv- the United States Army serving as a Technical tleman from Illinois (Mr. DAVIS) each ice as we dedicate a post office in her Sergeant. Returning home from the war, Ray will control 20 minutes. memory. I would like to thank my began work for Congressman Phillip Philbin of The Chair recognizes the gentle- friend and colleague, Senator JACK Clinton, Massachusetts, in 1950, and he re- woman from Michigan. REED, for introducing this measure, as mained in public service as the Congress- b 1500 well as the Government Reform Com- man’s Chief of Staff until 1970. mittee for bringing it to the floor GENERAL LEAVE During his time as a Hill staffer, Ray com- today. pleted law school, was admitted to the bar in Mrs. MILLER of Michigan. Mr. After the loss of Holly Charette, I 1952 and was a sole practitioner until 1977. Speaker, I ask unanimous consent that was touched by the memories shared While practicing law, Ray was appointed the all Members may have 5 legislative by her neighbors, friends, and family. Clerk Magistrate of Clinton District Court in days within which to revise and extend One common theme that emerged was 1976 and remained loyal to his position until their remarks and include extraneous that Holly’s smile and personality his retirement in 2000. Ray brought honor and material on the bill under consider- cheered all those around her. Those an enthusiasm to his position, and everyone in ation. who knew her well spoke of her opti- town knew and admired Ray for his character The SPEAKER pro tempore. Is there mistic outlook on life and her ability and love of public service. Actively engaged in objection to the request of the gentle- to make the most of any situation. the community, Ray was a member of many woman from Michigan? She aimed to help others, and that civic groups, including the Knights of Colum- There was no objection. dedication to service encouraged her to bus, American Legion, Polish American Vet- Mrs. MILLER of Michigan. Mr. join the Marines. In Iraq, Holly held an erans, and the Clinton Elks Lodge. Speaker, I yield myself as much time administrative job, and her duties in- Mr. Speaker, if you ever have the oppor- as I might consume. Mr. Speaker, S. cluded serving as the mail distributor tunity to travel to the town of Clinton, you will 1989, offered by the distinguished gen- for her camp. be hard-pressed to find someone who was not tleman from Rhode Island, Senator She was exceptionally well suited to fond of Ray. Clearly, his spirit lives on REED, would designate the post office that assignment, not only because of throughout this small, tight-knit community. By building in Cranston, Rhode Island, as her outstanding organizational skills, designating this facility as the Raymond J. the Holly A. Charette Post Office. but also because of her aspirations to Salmon Post Office, we honor not only this United States Marine Corps Lance one day become a postal worker. De- truly great individual, but the community he Corporal Holly Charette, a Cranston spite the procedures and physical chal- served and the people who knew him so well. resident, was killed on June 23, 2005, lenges of the position, she always Mr. DAVIS of Illinois. Mr. Speaker, I while serving our country in Iraq. maintained her professionalism and yield back the balance of my time. Charette served as a mail clerk at the sunny disposition. Mrs. MILLER of Michigan. Mr. Marine Camp Blue Diamond in Ramadi, She recognized the importance of Speaker, I have no further requests for which is the headquarters battalion of that task and worked so hard so that time. I urge Members to support the the Second Marine Division. she could brighten the days of her fel- passage of H.R. 4152, and I yield back Holly Charette was recognized by low marines with the messages of their the balance of my time. every soldier who had the pleasure of loved ones back home. The SPEAKER pro tempore (Mr. receiving mail from her, as she always However, Holly’s service was not BRADLEY of New Hampshire). The ques- greeted them with a smile and with a without risk. As one of few women at

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00011 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE H238 CONGRESSIONAL RECORD — HOUSE February 14, 2006 her post, she also traveled into ment, even to the extent of saying that b 1830 Fallujah to perform searches of female when I leave I want to continue to Iraqis, a task that men were prohibited serve my country in one way. And one AFTER RECESS from doing. It was returning from one way that I can do that is to make sure The recess having expired, the House such trip that Holly’s convoy was at- that the communication continues, was called to order by the Speaker pro tacked by insurgents. that the letters and parcels and pack- tempore (Mr. PRICE of Georgia) at 6 Three men and three women were ages that people use to communicate o’clock and 30 minutes p.m. killed that day, and 13 men and women with each other are in fact delivered? were wounded. This sacrifice reminds I do not think one can give any more f us of the courage of our men and than giving their life in service to oth- women in uniform who are faced with ers and in service to humanity. I am MESSAGE FROM THE SENATE ongoing dangers in Iraq. It also under- very pleased to urge swift passage of S. A message from the Senate by Ms. scores how important it is that we as 1989 and commend both gentlemen Curtis, one of its clerks, announced Members of Congress do everything in from Rhode Island for their introduc- that the Senate has passed with an our power to protect those who defend tion of it. amendment in which the concurrence our Nation. Mr. DAVIS of Illinois. Mr. Speaker, I of the House is requested, a bill of the Designating a post office in memory yield back the balance of my time. House of the following title: of Lance Corporal Holly Ann Charette Mrs. MILLER of Michigan. Mr. H.R. 4297. An act to provide for reconcili- is a fitting tribute to a woman who Speaker, I would urge all Members to ation pursuant to section 201(b) of the con- touched the lives of so many. When her support the passage of S. 1989, and I current resolution on the budget for fiscal friends and family visit the facility at yield back the balance of my time. year 2006. 57 Rolfe Square in Cranston, they will The SPEAKER pro tempore. The The message also announced that the be reminded of her smile, her cheerful question is on the motion offered by Senate insists upon its amendment to personality, and her dedication to help- the gentlewoman from Michigan (Mrs. the bill (H.R. 4297) ‘‘An Act to provide ing others. MILLER) that the House suspend the for reconciliation pursuant to section It will also remind future generations rules and pass the Senate bill, S. 1989. 201(b) of the concurrent resolution on of the sacrifice of one exceptional per- The question was taken. the budget for fiscal year 2006,’’ re- son who gave so much to her Nation. I The SPEAKER pro tempore. In the quests a conference with the House on ask my colleagues to honor Holly opinion of the Chair, two-thirds of the disagreeing votes of the two Houses Charette, a truly amazing woman by those present have voted in the affirm- thereon, and appoints Mr. GRASSLEY, supporting this legislation today. ative. Mr. KYL, and Mr. BAUCUS, to be the Mr. DAVIS of Illinois. Mr. Speaker, I Mrs. MILLER of Michigan. Mr. conferees on the part of the Senate. yield myself such time as I may con- Speaker, on that I demand the yeas The message also announced that sume. and nays. pursuant to Public Law 109–59, the As a member of the Government Re- The yeas and nays were ordered. Chair, on behalf of the Majority Lead- form Committee, I am pleased to join The SPEAKER pro tempore. Pursu- er, appoints the following individuals my colleagues in the consideration of ant to clause 8 of rule XX and the to serve as members of the National S. 1989, legislation naming a postal fa- Chair’s prior announcement, further Surface Transportation Policy and cility in Cranston, Rhode Island, after proceedings on this question will be Revenue Study Commission: Holly A. Charette. postponed. Paul Weyrich of Virginia. This measure, sponsored by Senator Patrick E. Quinn of Tennessee. Jack Reed, was introduced on Novem- f ber 10, 2005, and unanimously reported f by our committee on February 1, 2006. SCIENCE AND ENGINEERING INDI- A 2001 graduate of Cranston High CATORS, 2006—MESSAGE FROM ANNOUNCEMENT BY THE SPEAKER School East in Cranston, Rhode Island, THE PRESIDENT OF THE UNITED PRO TEMPORE Holly Charette was a cheerleader, ath- STATES The SPEAKER pro tempore. Pursu- lete and active student in high school. The SPEAKER pro tempore laid be- ant to clause 8 of rule XX, proceedings A year later she enlisted in the United fore the House the following message will resume on motions to suspend the States Marines, where she was assigned from the President of the United rules previously postponed. to Headquarters Battalion, Second Ma- States; which was read and, together Votes will be taken in the following rine Division, Second Marine Expedi- with the accompanying papers, without order: tionary Force. objection, referred to the Committee H. Con. Res. 322, by the yeas and She held an administrative position, on Science: nays; keeping records and delivering mail to To the Congress of the United States: S. 1989, by the yeas and nays. fellow soldiers. Sadly, she was killed Consistent with 42 U.S.C. 1863(j)(1), I on June 23, 2005, when her convoy was transmit herewith a report prepared f ambushed by a suicide bomber as it de- for the Congress and the Administra- SENSE OF CONGRESS REGARDING parted from Fallujah. tion by the National Science Board en- Lance Corporal Holly Charette, who THE CONTRIBUTION OF THE USO titled, ‘‘Science and Engineering Indi- TO OUR ARMED FORCES was awarded the Purple Heart post- cators—2006.’’ This report represents humously, will be remembered as a fine the seventeenth in the series exam- The SPEAKER pro tempore. The marine and soldier, someone who dear- ining key aspects of the status of pending business is the question of sus- ly wanted a career in the U.S. Postal science and engineering in the United pending the rules and agreeing to the Service when she completed her tour of States. concurrent resolution, H. Con. Res. 322, duty. GEORGE W. BUSH. as amended. A soldier in Operation Iraqi Freedom, THE WHITE HOUSE, February 14, 2006. The Clerk read the title of the con- she enjoyed delivering mail to her fel- current resolution. low soldiers and fighting for her coun- f The SPEAKER pro tempore. The try. question is on the motion offered by I commend my colleague, Senator RECESS the gentleman from Florida (Mr. MIL- REED, for seeking to honor her sacrifice The SPEAKER pro tempore. Pursu- LER) that the House suspend the rules by naming a post office in her home- ant to clause 12(a) of rule I, the Chair and agree to the concurrent resolution, town. declares the House in recess until ap- H. Con. Res. 322, as amended, on which Mr. Speaker, I think it is so impor- proximately 6:30 p.m. today. the yeas and nays are ordered. tant in reality that we take note of Accordingly (at 3 o’clock and 10 min- The vote was taken by electronic de- this very young person who had a seri- utes p.m.), the House stood in recess vice, and there were—yeas 407, nays 0, ous sense of duty and sense of commit- until approximately 6:30 p.m. not voting 25, as follows:

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00012 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — HOUSE H239 [Roll No. 8] Payne Sabo Tanner the gentlewoman from Michigan (Mrs. Pearce Salazar Tauscher MILLER) that the House suspend the YEAS—407 Pelosi Sa´ nchez, Linda Taylor (MS) Pence T. rules and pass the Senate bill, S. 1989, Abercrombie DeLauro Kanjorski Taylor (NC) Peterson (MN) Sanchez, Loretta Ackerman DeLay Kaptur Terry on which the yeas and nays are or- Peterson (PA) Sanders Aderholt Dent Keller Thomas dered. Petri Saxton Akin Diaz-Balart, L. Kelly Thompson (CA) Pickering Schakowsky The vote was taken by electronic de- Alexander Diaz-Balart, M. Kennedy (MN) Thompson (MS) Pitts Schiff Thornberry vice, and there were—yeas 408, nays 0, Allen Dicks Kennedy (RI) Platts Schmidt Tiahrt not voting 24, as follows: Andrews Dingell Kildee Poe Schwartz (PA) Baca Doggett Kind Pombo Schwarz (MI) Tiberi [Roll No. 9] Bachus Doolittle King (IA) Pomeroy Scott (GA) Tierney YEAS—408 Baird Doyle King (NY) Porter Scott (VA) Towns Abercrombie Davis (IL) Hulshof Baker Drake Kingston Price (GA) Sensenbrenner Turner Ackerman Davis (KY) Hyde Baldwin Dreier Kirk Price (NC) Serrano Udall (CO) Aderholt Davis (TN) Inglis (SC) Barrett (SC) Duncan Kline Pryce (OH) Sessions Udall (NM) Akin Davis, Jo Ann Inslee Barrow Edwards Knollenberg Putnam Shadegg Upton Alexander Davis, Tom Israel Bartlett (MD) Ehlers Kolbe Radanovich Shaw Van Hollen Allen Deal (GA) Issa Barton (TX) Emanuel Kucinich Rahall Shays Vela´ zquez Andrews DeFazio Istook Bass Emerson Langevin Ramstad Sherman Visclosky Baca DeGette Jackson (IL) Bean Engel Lantos Rangel Sherwood Walden (OR) Bachus Delahunt Jackson-Lee Beauprez English (PA) Larsen (WA) Regula Shimkus Walsh Baird DeLauro (TX) Becerra Eshoo Larson (CT) Rehberg Shuster Waters Baker DeLay Jefferson Berkley Etheridge Latham Reichert Simmons Watson Baldwin Dent Jenkins Berman Evans LaTourette Renzi Simpson Watt Barrett (SC) Diaz-Balart, L. Jindal Berry Everett Levin Reyes Skelton Waxman Barrow Diaz-Balart, M. Johnson (CT) Biggert Farr Lewis (CA) Reynolds Slaughter Weiner Bartlett (MD) Dicks Johnson (IL) Bilirakis Fattah Lewis (GA) Rogers (AL) Smith (NJ) Weldon (FL) Barton (TX) Dingell Johnson, E. B. Bishop (GA) Feeney Lewis (KY) Rogers (KY) Smith (TX) Weldon (PA) Bass Doggett Johnson, Sam Bishop (NY) Ferguson Linder Rogers (MI) Smith (WA) Weller Bean Doolittle Jones (NC) Blackburn Filner LoBiondo Rohrabacher Snyder Beauprez Doyle Jones (OH) Blumenauer Fitzpatrick (PA) Lofgren, Zoe Ros-Lehtinen Sodrel Westmoreland Becerra Drake Kanjorski Blunt Flake Lowey Ross Solis Wexler Berkley Dreier Kaptur Boehlert Foley Lucas Rothman Souder Whitfield Berman Duncan Keller Boehner Forbes Lungren, Daniel Roybal-Allard Spratt Wicker Berry Ehlers Kelly Bonilla Fortenberry E. Royce Stark Wilson (NM) Biggert Emanuel Kennedy (MN) Bonner Foxx Lynch Ruppersberger Stearns Wilson (SC) Bilirakis Emerson Kennedy (RI) Bono Frank (MA) Mack Rush Strickland Wolf Bishop (GA) Engel Kildee Boozman Franks (AZ) Maloney Ryan (OH) Stupak Wynn Bishop (NY) English (PA) Kind Boren Frelinghuysen Manzullo Ryan (WI) Sweeney Young (AK) Blackburn Eshoo King (IA) Boswell Gallegly Marchant Ryun (KS) Tancredo Young (FL) Boucher Garrett (NJ) Markey Blumenauer Etheridge King (NY) Boustany Gerlach Marshall NOT VOTING—25 Blunt Evans Kingston Boehlert Everett Kirk Boyd Gilchrest Matheson Bishop (UT) Hinchey Moran (VA) Boehner Farr Kline Bradley (NH) Gillmor Matsui Brown, Corrine Hunter Owens Brady (PA) Bonner Fattah Knollenberg Gingrey McCarthy Campbell (CA) Kilpatrick (MI) Sullivan Bono Feeney Kolbe Brady (TX) Gohmert McCaul (TX) Chandler Kuhl (NY) Wamp Boozman Ferguson Kucinich Brown (OH) Gonzalez McCollum (MN) Davis (FL) LaHood Wasserman Boren Filner Kuhl (NY) Brown (SC) Goode McCotter Ford Leach Schultz Boswell Fitzpatrick (PA) Langevin Brown-Waite, Goodlatte McCrery Fossella Lee Woolsey Boucher Flake Lantos Ginny Gordon McDermott Gibbons Lipinski Wu Boustany Foley Larsen (WA) Burgess Granger McGovern Gutierrez Miller, Gary Burton (IN) Graves McHenry Boyd Forbes Larson (CT) Butterfield Green (WI) McHugh b 1854 Bradley (NH) Fortenberry Latham Buyer Green, Al McIntyre Brady (PA) Fossella LaTourette Calvert Green, Gene McKeon So (two-thirds of those voting having Brady (TX) Foxx Leach Camp (MI) Grijalva McKinney responded in the affirmative) the rules Brown (OH) Frank (MA) Levin Cannon Gutknecht McMorris were suspended and the concurrent res- Brown (SC) Franks (AZ) Lewis (CA) Cantor Hall McNulty olution, as amended, was agreed to. Brown-Waite, Frelinghuysen Lewis (GA) Capito Harman Meehan Ginny Gallegly Lewis (KY) Capps Harris Meek (FL) The result of the vote was announced Burgess Garrett (NJ) Linder Capuano Hart Meeks (NY) as above recorded. Burton (IN) Gerlach LoBiondo Cardin Hastings (FL) Melancon The title of the concurrent resolution Butterfield Gilchrest Lofgren, Zoe Cardoza Hastings (WA) Mica was amended so as to read: ‘‘Concur- Buyer Gillmor Lowey Carnahan Hayes Michaud Calvert Gingrey Lucas Carson Hayworth Millender- rent resolution expressing the appre- Camp (MI) Gohmert Lungren, Daniel Carter Hefley McDonald ciation of the Congress for the con- Cannon Gonzalez E. Case Hensarling Miller (FL) tributions of the United Service Orga- Cantor Goode Lynch Castle Herger Miller (MI) nizations, Incorporated (the USO), to Capito Goodlatte Mack Chabot Herseth Miller (NC) Capps Gordon Maloney Chocola Higgins Miller, George the morale and welfare of the members Capuano Granger Manzullo Clay Hinojosa Mollohan of the Armed Forces and their fami- Cardin Graves Marchant Cleaver Hobson Moore (KS) lies.’’. Cardoza Green (WI) Markey Clyburn Hoekstra Moore (WI) A motion to reconsider was laid on Carnahan Green, Al Marshall Coble Holden Moran (KS) Carson Green, Gene Matheson Cole (OK) Holt Murphy the table. Carter Grijalva Matsui Conaway Honda Murtha Stated for: Case Gutknecht McCarthy Conyers Hooley Musgrave Mr. FOSSELLA. Mr. Speaker, on rollcall No. Castle Hall McCaul (TX) Cooper Hostettler Myrick 8, I was unavoidably detained. Had I been Chabot Harman McCollum (MN) Costa Hoyer Nadler present, I would have voted ‘‘yea.’’ Chocola Harris McCotter Costello Hulshof Napolitano Clay Hart McCrery Cramer Hyde Neal (MA) Mr. KUHL of New York. Mr. Speaker, on Cleaver Hastings (FL) McDermott Crenshaw Inglis (SC) Neugebauer rollcall No. 8, I was unavoidably detained. Had Clyburn Hastings (WA) McGovern Crowley Inslee Ney I been present, I would have voted ‘‘yea.’’ Coble Hayes McHenry Cubin Israel Northup Cole (OK) Hayworth McHugh Cuellar Issa Norwood f Conaway Hefley McIntyre Culberson Istook Nunes HOLLY A. CHARETTE POST OFFICE Conyers Hensarling McKeon Cummings Jackson (IL) Nussle Cooper Herger McKinney Davis (AL) Jackson-Lee Oberstar The SPEAKER pro tempore (Mr. Costa Herseth McMorris Davis (CA) (TX) Obey PRICE of Georgia). The pending busi- Costello Higgins McNulty Davis (IL) Jefferson Olver Cramer Hinojosa Meehan Davis (KY) Jenkins Ortiz ness is the question of suspending the Crenshaw Hobson Meek (FL) Davis (TN) Jindal Osborne rules and passing the Senate bill, S. Crowley Hoekstra Meeks (NY) Davis, Jo Ann Johnson (CT) Otter 1989. Cubin Holden Melancon Davis, Tom Johnson (IL) Oxley The Clerk read the title of the Senate Cuellar Holt Mica Deal (GA) Johnson, E. B. Pallone Culberson Honda Michaud DeFazio Johnson, Sam Pascrell bill. Cummings Hooley Millender- DeGette Jones (NC) Pastor The SPEAKER pro tempore. The Davis (AL) Hostettler McDonald Delahunt Jones (OH) Paul question is on the motion offered by Davis (CA) Hoyer Miller (FL)

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00013 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE H240 CONGRESSIONAL RECORD — HOUSE February 14, 2006 Miller (MI) Rangel Sodrel armed forces (rollcall No. 8) and ‘‘yea’’ on S. health policy decisions on what is good Miller (NC) Regula Solis for our constituents, communities and Miller, George Rehberg Souder 1989, the Holly A. Charette Post Office Build- Mollohan Reichert Spratt ing Designation Act (rollcall No. 9). small businesses, not the powerful drug Moore (KS) Renzi Stark f and insurance companies. I respectfully Moore (WI) Reyes Stearns and urgently ask my colleagues to ad- Moran (KS) Reynolds URGING SENATE ACTION ON Strickland dress this important issue. Murphy Rogers (AL) Stupak IMMIGRATION Murtha Rogers (KY) Sweeney f Musgrave Rogers (MI) Tancredo (Ms. GINNY BROWN-WAITE of Flor- Myrick Rohrabacher Tanner ida asked and was given permission to PRESIDENT’S BUDGET Nadler Ros-Lehtinen Tauscher address the House for 1 minute and to Napolitano Ross (Mr. OSBORNE asked and was given Taylor (MS) revise and extend her remarks.) permission to address the House for 1 Neal (MA) Rothman Taylor (NC) Neugebauer Roybal-Allard Terry Ms. GINNY BROWN-WAITE of Flor- minute.) Ney Royce Thomas ida. Mr. Speaker, this country is in Mr. OSBORNE. Mr. Speaker, last Northup Ruppersberger Thompson (CA) dire need of immigration reform and Norwood Rush year, the President’s budget zeroed out Thompson (MS) Nunes Ryan (OH) tighter border security. Officials at all the Byrne Justice Assistance Grant Thornberry Nussle Ryan (WI) levels of government and across party Tiahrt program, and this was devastating to Oberstar Ryun (KS) lines have felt this need. However, in- Obey Salazar Tiberi the drug task forces around the coun- Olver Sa´ nchez, Linda Tierney stead of acting, we are sitting back and try. Byrne funds are the primary Ortiz T. Towns debating the details of amnesty or no source of funds for drug task forces and Osborne Sanchez, Loretta Turner amnesty, guest worker or no guest Udall (CO) are critical in combating methamphet- Otter Sanders worker, et cetera. Oxley Saxton Udall (NM) amine abuse. Pallone Schakowsky Upton I call on my colleagues in both the Congress restored $410 million of Pascrell Schiff Van Hollen House and the Senate to move political Byrne funds, but this is way short of Pastor Schmidt Vela´ zquez positioning and think about the men Visclosky the $1.1 billion of authorized spending Paul Schwartz (PA) and women that they represent. There Payne Schwarz (MI) Walden (OR) that was allowed. The State of Texas Pearce Scott (GA) Walsh will undoubtedly be areas of disagree- was forced to eliminate drug task Pelosi Scott (VA) Waters ment, yet this must not stop us from forces, and other States are now con- Pence Sensenbrenner Watson moving forward to secure our borders Watt sidering doing so. Peterson (MN) Serrano this year. Peterson (PA) Sessions Waxman The President’s 2007 budget proposal Petri Shadegg Weiner Our constituents deserve to know again eliminates Byrne funds. Unless Pickering Shaw Weldon (FL) that they are safe and that they can Congress restores these funds at an Pitts Shays Weldon (PA) live out their lives without the threat Platts Sherman Weller adequate level, we will lose the drug Poe Sherwood Westmoreland of terror at their doorstep, and they de- task forces in nearly all of our States. Pombo Shimkus Wexler serve nothing less. This is our most effective means of Pomeroy Shuster Whitfield f Porter Simmons Wicker combating methamphetamine abuse. Price (GA) Simpson Wilson (NM) MEDICARE PART D AND For every $1 that we spend on edu- Price (NC) Skelton Wilson (SC) COMMUNITY PHARMACISTS cation and prevention, we get $9 at the Pryce (OH) Slaughter Wolf back end and save costs on imprison- Putnam Smith (NJ) Wu (Ms. HERSETH asked and was given Radanovich Smith (TX) Wynn permission to address the House for 1 ment, crime and all the things that are Rahall Smith (WA) Young (AK) minute and to revise and extend her re- attendant to methamphetamine abuse. Ramstad Snyder Young (FL) Meth is sweeping across the country, marks.) NOT VOTING—24 Ms. HERSETH. Mr. Speaker, I rise to and we certainly urge the Congress to restore these funds as rapidly as we Bishop (UT) Gutierrez Owens discuss the crisis facing our commu- Bonilla Hinchey Sabo nity pharmacists, particularly those in can. Brown, Corrine Hunter Sullivan f Campbell (CA) Kilpatrick (MI) Wamp rural communities. Of all the health Chandler LaHood Wasserman care professionals struggling with the b 1915 Davis (FL) Lee Schultz implementation of the new Medicare Edwards Lipinski Woolsey RESPECT RELIGIONS Ford Miller, Gary drug benefit, pharmacists appear to be Gibbons Moran (VA) the most negatively affected. (Ms. JACKSON-LEE of Texas asked Guess what? Pharmacists are facing and was given permission to address b 1910 another blow. The recently enacted the House for 1 minute and to revise So (two-thirds of those voting having cuts to the Medicaid program are and extend her remarks.) responded in the affirmative) the rules achieved by changes in the way we re- Ms. JACKSON-LEE of Texas. Mr. were suspended and the Senate bill was imburse pharmacies for prescription Speaker, as co-chair of the Pakistan passed. drugs. Caucus, it saddens me to see the loss of The result of the vote was announced The choices made during the budget life that has occurred and the violence as above recorded. reconciliation process once again tar- that is raging throughout the Muslim A motion to reconsider was laid on geted our Nation’s pharmacists with- world and as well in Pakistan. the table. out asking for corresponding sacrifices It would seem appropriate that the f from the pharmaceutical manufactur- Danish Government and the Prime ers and the PBMs. Minister would spend less time point- PERSONAL EXPLANATION This one-two punch is not only bad ing a finger at fundamentalist Islamic Mr. GUTIERREZ. Mr. Speaker, I was un- policy, it is outrageous. Health and activities and groups and really speak avoidably absent from this chamber today. I Human Services Secretary Mike to the hundreds of millions of Muslims would like the RECORD to show that, had I Leavitt praised pharmacists last week around the world who are peace-loving been present, I would have voted ‘‘yea’’ on for their ‘‘heroic’’ efforts in shoul- and believing in humankind and, of rollcall votes 8 and 9. dering the burden for implementing course, the world humanity. f Medicare Part D. It is appropriate to admit mistakes; Their reward? Drastic pharmacy re- it is appropriate to announce the fact PERSONAL EXPLANATION imbursement cuts in the Medicaid pro- that I am appealing to the Muslims Ms. KILPATRICK of Michigan. Mr. Speaker, gram that will have a devastating im- who believe in peace and harmony in personal reasons require my absence from pact on our communities, dispropor- the words of the Koran. It would be ap- legislative business scheduled for today, Tues- tionately impacting the poorest and propriate to say that we made a mis- day, February 14, 2006. Had I been present, sickest Americans that will no doubt take in degrading the religion, that we I would have voted ‘‘yea’’ on H. Con. Res. put hundreds, if not thousands, of do have a respect for diversity and reli- 322, a resolution expressing the sense of small businesses out of business. gion. Congress regarding the contribution of the It is time this body quit taking the It would not be to undermine the fact USO to our service men and women of our path of least resistance and base our of the first amendment, to be able to

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00014 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — HOUSE H241 acknowledge that a mistake has been Having loaded guns in cars outside content, a tax system that has stifled made. It would be the same way of ac- the facility has not saved one life. In economic growth, has encumbered our knowledging if the degradation of fact, I cannot think of a single work- resources and miles of red tape and other religions were to occur and many place shooting that could have been needlessly burdened working Ameri- voices would rise. Why not admit that prevented by loaded guns being kept in cans. the cartoons were degrading of a reli- company parking lots. But I can think Our Tax Code is too complicated and gion. It did not show the appreciation of numerous scenarios that would is riddled with obvious inequities. It of religion and, in fact, we can all do make a shooting more likely with guns punishes savings and investment, re- better. on the premises. ducing economic and job growth; and it We have a respect for each other’s What happens when a criminal learns burdens domestic industry struggling differences, and we join together in that parked cars, often left unattended, to remain competitive. harmony and world peace. I would ask contain loaded weapons? What is stop- As a member of the Ways and Means the Danish Government to stop hiding ping them from breaking into cars and Committee, I have long advocated a behind the first amendment or at least using those guns for crimes? Criminals tabula rasa approach to the Tax Code, the premise of free speech and deal break into parked cars to steal stereo a complete overhaul grounded in first with the question of religious diversity speakers. They would not hesitate to principles. Our objective must be to re- and appreciation. take a loaded gun. What if an employee place the current antiquated tax sys- f brings his or her gun into their place of tem with one that can sustain a free SPECIAL ORDERS work. A gun could be misfired or end capitalist society in the 21st century. up in the hands of someone else. That means a Tax Code that is simple, The SPEAKER pro tempore (Mr. Worse yet, somebody who isn’t le- fair, and stable. CONAWAY). Under the Speaker’s an- gally allowed to own a firearm could The new Tax Code I have developed, nounced policy of January 4, 2005, and gain access to a co-worker’s gun. Stud- the Simplified USA Tax Act, or under a previous order of the House, ies show that guns are already the SUSAT, puts the right incentives in the following Members will be recog- third greatest workplace safety hazard, place to grow our economy and ulti- nized for 5 minutes each. behind vehicles and heavy machinery. mately raise our standard of living. In f In fact, 17 people are killed by guns fact, many of the provisions included GUNS IN THE WORKPLACE on the job each week. A study done by in my bill were recommended by the The SPEAKER pro tempore. Under a the University of North Carolina re- President’s advisory panel on Federal previous order of the House, the gentle- vealed that killings are five times tax reform as part of their growth and investment plan. woman from New York (Mrs. MCCAR- more likely to occur at job sites where My proposal has three key compo- THY) is recognized for 5 minutes. guns are allowed in workplaces than Mrs. MCCARTHY. Mr. Speaker, in where they are prohibited. The NRA nents. First, it simplifies the code by a the last year the gun lobby has contin- has targeted State legislatures for this factor of about 75 percent. Second, it ued to defy common sense by pursuing ridiculous campaign. takes the taxes off of savings to pro- a radical agenda in Congress and in The Florida legislature is considering mote thrift and avert a national sav- State legislatures. Last year Congress making it a felony for employers to ings crisis. Third, it makes America passed legislation to give the gun in- ban workers from having guns on the significantly more competitive, there- dustry unprecedented immunity from company property. Similar laws have by creating better jobs within our bor- litigation and other legal action. passed in Alaska, Minnesota, and Okla- ders. Thanks to this new law, dishonest homa. I fear it is only a matter of time The Simplified USA Tax starts out and corrupt gun dealers will be held ac- before they bring their cause before with just three simple low rates: 15 per- countable for their negligence. Almost Congress. cent at the bottom, 25 percent in the 2 years ago, Congress let the ban on as- Fortunately, the business commu- middle, and 30 percent at top. Through sault weapons expire, and this year’s nity has rallied against the NRA on a payroll tax credit to all wage earners, budget cuts bullet-proof vest grants for this matter, and for good reason. Busi- SUSAT effectively lowers the income police departments. Congress is allow- nesses know that if they fire someone, tax rates to about 7 percent to 17 per- ing criminals to better arm them- who is to say that person is not going cent for nearly all Americans. selves, and now the budget is taking to go out into the car and get their gun Under my proposal, and this is one away protection from our police offi- and come in and try to do the mayhem significant departure from the Presi- cers. against an employer. Are they going to dent’s panel recommendation, every- But sadly, the gun lobby isn’t done have a safe room for someone that has one gets a deduction for the mortgage defying common sense with legislation. been fired to go there? The liability interest on their home. In addition, the The NRA is currently lobbying for costs are going to also be involved in SUSAT tax allows charitable donations States to prohibit employers from ban- private companies. and tuition deductions. To further en- ning guns on their private property. It Also, layoffs and firings are a tough sure that the new Tax Code would be does not matter if someone works in a reality in today’s economy. How will progressive, my proposal also permits school, day care center, bar, or even a companies handle giving employees all families to take a generous family facility that produces hazardous mate- bad news when they may have loaded credit and qualifying families to take rials. The NRA wants to let them come guns in their cars? Seems to me the an additional refundable work credit. to work with a loaded gun in their car. latest initiative of the NRA creates a These two credits simplify and improve In fact, the NRA is suing companies lot more problems than it solves. the current child credit and earned in- who ban guns in the workplace. Let us Mr. Speaker, instead of being a rub- come tax credit. set the record straight here. I have no ber stamp for the NRA in 2006, let us I believe the Tax Code must also give problem for a legal citizen to be able to focus on laws that keep guns out of the Americans a fair opportunity to save purchase a gun. But allowing loaded hands of criminals and terrorists. It is part of their earnings. By taking the guns in day care centers, parking lots, time for common sense, not misguided taxes off of savings, we will increase that does not make sense. Right out- extremism. the savings rate and ultimately reduce side of chemical plants, again, makes f the cost of capital. no sense. This is a recipe for disaster. My proposal encourages savings by The NRA and its allies say that SIMPLIFIED USA TAX, SUSAT allowing everyone to contribute to an workers bringing guns to work and The SPEAKER pro tempore. Under a unlimited Roth IRA. It also repeals the leaving them in their parked cars previous order of the House, the gen- individual and corporate alternative makes for a safer workplace, but they tleman from Pennsylvania (Mr. minimum tax, Federal death and gift never explain how. Last month, an ex- ENGLISH) is recognized for 5 minutes. taxes. Mr. Speaker, as you can see, the employee of a post office in California Mr. ENGLISH of Pennsylvania. Mr. individual tax system, under my pro- opened fire at a mail processing plant, Speaker, tonight I would like to talk posal, is designed to be much simpler unfortunately killing six people. about our current Tax Code and its dis- than the status quo.

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00015 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE H242 CONGRESSIONAL RECORD — HOUSE February 14, 2006 The tax return will be short: only a town. Or at least that is what the spe- So what do the American people get page or two for most people. But more cial interests spent on lobbying the Re- out of this blue-light special and how importantly, the tax return will be un- publican Congress in the first 6 months do we get out of this? We have created derstandable. My proposal also con- of 2005. a structural deficit to the system and a tains a new and better way of taxing And what exactly does about $1 bil- system that works against the Amer- corporations and other businesses that lion from lobbyists get you these days ican people and the taxpayers, whether will allow them to compete and win in in a home like the People’s House? you are a senior citizen who is strug- global markets in a way that exports If you are an oil and gas company, gling with this prescription drug bill American-made products, not Amer- you have done $87 million in lobbying which is total chaos but has guaran- ican jobs. expenses. What does it buy you? $14.5 teed and locked in profits for HMOs All businesses would be taxed alike billion in subsidies from taxpayers. and pharmaceutical companies, or at an 8 percent rate on the first $150,000 $14.5 billion from taxpayers in subsidies whether you are a consumer going to of profit, and at 12 percent on all so you can just do your business plan. pump paying close to three bucks a amounts above that small business They spent $87 million and got a $14.5 gallon, and yet we are also paying on level. All businesses will be allowed a billion gift from the taxpayers. April 15 subsidizing the big companies. credit toward the 7.65 percent payroll $87 million will also allow to you Yes, there are 30 different insurance tax that they pay under current law. pump about $65 billion worth of oil and forms for a senior citizen to try to fig- One of the most pro-growth elements gas from the Gulf of Mexico, and you ure out which drug they can get in SUSAT is that all costs for plant do not pay a single royalty, costing the matched with. and equipment and inventory in the taxpayers $7 billion. That is $7 billion Now do you think the oil and gas United States will be expensed in the that could pay for child support collec- companies fill out 30 different forms year of purchase. This is important be- tions, $7 billion that could pay for col- for oil and gas leasing or for their $14.5 cause investment and state-of-the-art lege education, $7 billion that can cre- billion in taxpayer subsidies? No, they equipment is critical to manufacturing ate new broadband expansion, every- do not. Now there are over 100 ques- tions for a kid who is just trying to in a global economy. thing that we would be doing. $7 billion apply for a student loan for about The other key component of SUSAT could pay down the deficit. $2,000, yet we do not force oil and gas that will make American business No, taxpayers have been asked to companies, pharmaceutical companies, more competitive is that it is border forgo all the royalty that is owed to HMO companies to fill out forms like adjustable. In other words, SUSAT them, and the oil and gas companies that when it comes to the subsidies we would end the perverse practice unique walked away with it, $14.5 billion in taxpayers subsidies. All the while, are providing these companies. among our trading partners of taxing It is time to end corporate welfare as our own exports. All export sales in- while energy is about little north of 60 bucks a barrel. That is right, 60 bucks we know it. The People’s House and the come is exempt and all profits earned Speaker’s gavel when it comes down it abroad can be brought back home for a barrel. We are subsidizing big oil and big energy companies who also have is intended to open up the People’s reinvestment in America without pen- House, not the auction house. In the alty. made record profits. Now, I think that is great. I think last 5 years, this place has looked like Because of a 12 percent import ad- an auction house, whether it is oil and justment, all companies that produce Exxon Mobil should make all the money they want to make. But why are gas companies, whether it is HMO com- abroad and sell back into U.S. markets panies, whether it is pharmaceutical will be required to bear the same tax as subsidizing them when they are mak- ing record profits to do nothing but companies. In fact, last year, we had a companies that both produce and sell corporate tax bill on the floor. It was in the United States. This policy would their business plan? I don’t know of an- other family that has their family supposed to solve a $5 billion problem. finally take away the bias in favor of By the time the Republican Congress imports built into our current tax budget subsidized by the rest of the taxpayers to this level. $87 million in- was done with it, $150 billion it cost the structure, which, in my view, contrib- taxpayers. Time and again, we are pay- utes to our record trade deficit that vestment and contributions got them $14.5 billion in taxpayer subsidies and ing for the types of wheeling and deal- continues to rise to record-breaking ing and what goes as business as usual. basically a pass on $7 billion they owe levels. If you go out to the north side of the the taxpayers for having drilled in the For too long, the Tax Code has been lawn here at the People’s House you a needless drag on the economy. This is Gulf of Mexico. will see the for sale sign, and the lob- But that is not just alone in the en- a curious paradox, and certainly not byists have paid a little over a billion ergy sector. Let us talk a look at the fair to those Americans whose living dollars and gotten everything money health care sector. They have given standards are lower because of it. The can buy. So it is time in this election about $173 million in contributions, time has come for fundamental change. that we turn the People’s House back In the coming weeks, I will outline lobbying activities, all types of ex- and that gavel back to its rightful more details about this tax system and penses. Drug manufacturers saw an owner, the American people. extra $139 billion in profits over the why we need to move forward today f with tax reform. next 8 years from the prescription drug bill. HMOs, $130 billion in additional PROTECTING FIRST AMENDMENT f profits through Medicare overpay- RIGHTS OF MILITARY CHAPLAINS b 1930 ments. There is actually a section in The SPEAKER pro tempore. Under a the prescription drug bill called the THE PEOPLE’S HOUSE FOR SALE previous order of the House, the gen- HMO slush fund for $10 billion. Where tleman from North Carolina (Mr. The SPEAKER pro tempore (Mr. else can you get an investment like JONES) is recognized for 5 minutes. CONAWAY). Under a previous order of that? You cannot get an investment Mr. JONES of North Carolina. Mr. the House, the gentleman from Illinois that gives you 100 percent return on Speaker, prior to the break I came on (Mr. EMANUEL) is recognized for 5 min- your money on Wall Street. the floor and announced that we had utes. My grandmother used to say, with a sent a letter in October of this past Mr. EMANUEL. Mr. Speaker, the real deal like this, where you basically give year to the President of the United estate bubble may be bursting in some $173 million and you get $132 billion States signed by 76 Members of the markets around America, but here in profit, such a deal is what my grand- House, 3 United States Senators asking Washington, D.C., real estate is still a mother used to say. Nowhere except in the President of the United States to great investment. Washington, D.C., in a Republican Con- use his constitutional authority as You may have missed the listing, but gress can you give $87 million and get Commander-in-Chief to guarantee the it appears that the U.S. Capitol, the $14 billion in return. Give $173 million first amendment rights of our chap- People’s House, was bought with a and get $132 billion in return. That is lains in the military, whether they be down payment of a mere $1.6 billion, close to a hundred percent return on Muslim, Jewish or Christian, to pray in $1.16 billion from lobbyists here in your money. their faith and their tradition.

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00016 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — HOUSE H243 Tonight, I am on the floor to give an in certain ceremonies and services that So in light of the current situation, example of what is happening in our they pray as they think their faith and why would the Arab League decide to military. I can tell you, Mr. Speaker, tradition asks them to pray. have their annual summit in Sudan? I in the 3 years that I have talked to Mr. Speaker, I will ask, as I close, understand that the site of the Arab chaplains from the Navy, from the Ma- God to please bless our men and women League summit is determined by an al- rine Corps, from the Army, Air Force, in uniform and ask God to please bless phabetical order rotation. However, that there is a prohibited rule that the families of our men and women in genocide calls for more than business they should not pray in the name of uniform and ask God to please bless as usual, and that is the attitude that Jesus, if they happen to be of the America. the Arab League is now using. Christian faith, outside of their church. f If there is one organization that has Give you two examples. Last year, I influence over the Sudanese govern- DARFUR RESOLUTION spoke to a Navy chaplain in Hawaii ment it is the Arab League. Member who had been asked to pray at a re- The SPEAKER pro tempore. Under a countries have a responsibility to rein membrance service for Marines killed previous order of the House, the gen- in the Sudanese government and to do in Afghanistan and Iraq. At the close of tleman from New Jersey (Mr. PALLONE) everything in their power to stop this his prayer, he closed in the name of our is recognized for 5 minutes. genocide now. Lord and Savior, Jesus Christ. About Mr. PALLONE. Mr. Speaker, this I believe the Arab League’s decision an hour later, he got a phone call from evening I introduced a bipartisan reso- to hold this 2006 summit in Khartoum a Marine Major that asked him to lution expressing the disapproval of the constitutes an economic and symbolic please, in the future, outside of his Arab League’s decision to hold its 2006 reward and could even encourage the church not to pray in the name of summit in Khartoum, Sudan. The reso- government of Sudan to continue to Jesus Christ. lution also calls on the Arab League, allow acts of genocide and other mis- He was so upset, Mr. Speaker, that he the government of Sudan, the Sudanese treatment against the people of Darfur. went to a Jewish rabbi who was a rebels and the world community to do Mr. Speaker, the Arab League has a friend of his, and he asked the Jewish all they can to end acts of genocide in choice to make. Ignore a genocide and rabbi, are you offended when I pray in the Darfur region of Sudan. go forward with their planned summit the name of my Lord and Savior, Jesus Recently, the Arab League an- or break the alphabetical tradition and Christ? The Jewish rabbi said, abso- nounced its decision to hold its annual send a message to Khartoum to do all lutely not. This is your faith and your summit in Khartoum. Doing so will it can to end the acts of genocide, to tradition, and you should pray as you only lend credibility to a country that allow international peacekeepers to see fit. is currently under sanction by the protect the innocent and to hold the Mr. Speaker, 3 weeks ago, I spoke to United States. The Sudanese govern- Arab militia responsible for these acts a chaplain in Iraq. His name is Jona- ment continues to allow acts of geno- accountable. This is an opportunity for than Stertzbach. He happens to be an cide to occur in the Darfur region and the Arab League to lead. It is time for independent Baptist. He is a chaplain, deliberately obstructs the African them to send the right message to the and he was asked by a commander of a Union’s ability to stabilize the region. Sudanese government. unit to pray over the grave of a shoul- Mr. Speaker, the current situation in I would urge my colleagues to join der who professed to be a Christian who the Darfur region of Sudan is dire. The my resolution. It is bipartisan, express- had been killed in battle. It so happens U.N. estimates that as many as 180,000 ing disapproval of the Arab League’s in the Army that this chaplain had to have died, many of starvation and dis- decision to hold its 2006 summit in submit his prayer in writing to the sen- ease, and up to 2 million have been dis- Khartoum. It is time to send a strong ior chaplain. The senior chaplain, Mr. placed. message that the Sudanese government Speaker, struck through the words The Darfur conflict is an ongoing should be reprimanded, not rewarded Jesus Christ. The young chaplain conflict in the Darfur region of western for their support of genocide. whose name is Jonathan Stertzbach, I Sudan, mainly between the Janjaweed, f talked to him by telephone, said, Con- a government-supported militia re- gressman, I could not pray if I could cruited from local Arab tribes, and the DORIS MILLER—TEXAS SAILOR not pray as I thought my Lord wanted non-Arab rebels in the region. The The SPEAKER pro tempore. Under a me to pray. It so happens that the com- Janjaweed has been implicated in a previous order of the House, the gen- pany commander, before he removed campaign of murder, rape and intimi- tleman from Texas (Mr. POE) is recog- himself, asked him if he was going to dation sponsored by the government of nized for 5 minutes. be at the service and if he was going to Sudan. Mr. POE. Mr. Speaker, I have talked pray. And he said, sir, I have asked to Mr. Speaker, I do not need to remind much on this House floor about our be removed because my prayer has this House of the horrors that we have veterans, both those of today and those been struck down. The Major told him, turned a blind eye to in the past. The of the past. Tonight I mention another you go to the funeral. You are going to U.S. still will not recognize the Otto- one of them. pray as you see fit. Doris Miller was born in Waco, Since that time, it so happens that a man Empire’s genocide of over a mil- Texas, on October 12, 1919. He was the newspaper in America called Chaplain lion Armenians from 1914 to 1921. It took us far too long to join the youngest of three sons born to Hen- Stertzbach and he did comment about what happened, and so now he has been fight against the systematic state- rietta and Connery Miller. He was a removed from his chapel in Iraq. sponsored persecution and genocide of good kid. He enjoyed playing with his I have written to the Inspector Gen- the Jews of Europe during World War II brothers and was always helping eral, General Stanley Green. I have by Nazi Germany. And of course our around the house, especially in the asked him to look into this matter. shameful disregard for the 937,000 kitchen. In school, Miller was a good Mr. Speaker, I would be on the floor Tutsis and moderate Hutus that died at student. He was also a fullback on the of the House tonight if this was a Jew- the hands of organized bands of mili- football team at A.J. Moore High ish rabbi, if it was a Muslim cleric, and tias during the Rwandan genocide. School in Waco, Texas. They called protect their rights to pray as they see As the leader of the free world, we him the raging bull because of his size. fit. That is what America is all about, have a moral obligation to do all we He was 5 foot 9, but he weighed over 200 is the first amendment rights to pray, can to stop genocide in all its forms. It pounds. to speak as we see fit. was in 1998 when President Clinton Growing up, Miller worked on his fa- I hope that my colleagues in the said, and I quote, never again must we ther’s farm until he enlisted in the House will join the 76 of us who have be shy in the face of evidence describ- United States Navy at the age of 20 as signed this letter and say to the Presi- ing the failed U.S. response to the a Mess Attendant, Third Class. He dent of the United States, protect the Rwandan genocide. Well, here we are, 8 quickly advanced to Mess Attendant, first amendment rights. years later, standing on the sidelines Second Class and First Class, and sub- We are not talking about having once again in the face of undisputable sequently he was promoted to Ship’s altar calls. We are just talking about evidence. Cook.

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00017 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE H244 CONGRESSIONAL RECORD — HOUSE February 14, 2006 After training at the Naval station at Mr. Speaker, every February our Na- The fact of the matter is the policy Norfolk, Virginia, he was assigned to tion celebrates Black History Month to of royalty relief that the Congress the ammunition ship USS Pyro; and on recognize the contribution that African passed was an unwise policy when we January 2, 1940, Dorie, as his shipmates Americans have made to our country. passed it. But the oil companies con- nicknamed him, was transferred to the This Black History Month, as we note vinced this Congress to do so, and they battleship USS West Virginia. When he accomplishments of African Ameri- have convinced the administration to was not cooking he was boxing with his cans, we take time to salute their mili- allow it to continue. Although the buddies, and he became the ship’s tary accomplishments as well. We Bush administration opposed the fur- heavyweight boxing champion. He was honor the loyal duty of heroes like ther extension in expansion of the oil serving on the battleship West Virginia Doris Miller. He was an extraordinary royalty relief program that was in that December morning in 1941 when American and a sailor. He received their most recent energy bill that was the Japanese surprise attack took many awards for his bravery during the just signed by President Bush, unfortu- place. attack on Pearl Harbor, and he acted nately, his opposition did not go to As the bright rising and violent sun above and beyond the call of duty. He such an extent that he insisted that it came up on the morning of December 7, could have certainly qualified for the be taken out of the bill. 1941, Dorie was already awake and col- medal of honor for his courage. He was So what do we have? We have the lecting laundry when the battle sta- a man of valor, and Doris Miller is en- major oil companies securing leases on tions alarm sounded throughout the titled to respect and gratitude of our land that is owned by the public, land ship. Pearl Harbor and Hawaii were country. that is owned by the taxpayers of this under attack. There were many of the World War II Nation, to go in and to drill those He ran on deck to help his fellow Greatest Generation that gave their lands. And in exchange for that, they wounded soldiers. In the midst of the youth and their lives for our Nation. said that they would not go in there chaos, an officer ordered him to aid the Mr. Speaker, over 400,000 Americans, and drill unless we gave them royalty critically wounded captain of the ship. young men and young women, died in relief, unless we took away the royal- While struggling back to the bridge World War II protecting our Nation and ties that they were entitled to pay to and then amid horrendous and heavy the concept of freedom. Dorie Miller the landowners, the taxpayers of this fire and bombs, Dorie came upon a ma- was one of those Americans. And that’s country, for the privilege and the right chine gun whose gunner had already just the way it is. to drill those reserves. been killed. Dorie, rescuing his cap- The SPEAKER pro tempore (Mr. These are some of the most impor- tain, made sure that he was protected CONAWAY). Under a previous order of tant reserves in this country. They are and immediately began firing this ma- the House, the gentleman from Amer- some of the more important reserves in chine gun at Japanese airplanes. ican Samoa (Mr. FALEOMAVAEGA) is the world. There is a huge amount of b 1945 recognized for 5 minutes. competition for drilling for this. At the (Mr. FALEOMAVAEGA addressed the He continued firing until the crew time, it was suggested that nobody House. His remarks will appear here- would bid on these leases, that nobody was ordered to abandon the ship. Miller after in the Extensions of Remarks.) had never been trained to operate a would participate, that nobody would f machine gun, but he was credited with raise the capital to do so if they did shooting down at least two Japanese THE POLICY OF ROYALTY RELIEF not have royalty relief. The fact of the planes, probably more than that. Later Mr. GEORGE MILLER of California. matter is I think the record will show he said, ‘‘I just pulled the trigger and Mr. Speaker, I ask unanimous consent that at the same time they were argu- she worked fine.’’ to claim the time of the gentleman ing that, they were already in the con- In the spring of 1943, Dorie Miller was from American Samoa (Mr. struction of the rigs that were nec- essary for deepwater drilling and that assigned to the USS Liscome Bay, an FALEOMAVAEGA). aircraft carrier in the Pacific, and he The SPEAKER pro tempore. Is there the decisions had already been made. was on board November 24, 1943, when objection to the request of the gen- Some companies decided they would the aircraft carrier was sunk by a sub- tleman from California? bet on the gulf. Other companies de- marine; 646 sailors were lost at sea, and There was no objection. cided they would go to the Caspian Dorie was one of them. The SPEAKER pro tempore. Under a Sea. But the fact of the matter is the Before he died, Miller was honored previous order of the House, the gen- competition was hot and heavy. for his brave acts at Pearl Harbor on tleman from California (Mr. GEORGE For this Congress to have then just December 7. He was awarded the second MILLER) is recognized for 5 minutes. given away those royalties is a horrible highest medal in the Navy, the Navy Mr. GEORGE MILLER of California. mistake, and it is a mistake that the Cross, for his extraordinary courage Mr. Speaker, today Americans woke up Congress must correct. Nobody, even during that battle. It happened that to the unfortunate news that because the proponents of royalty relief, be- Admiral Chester Nimitz, another of the actions of this Congress, the lieved that there was going to be a Texan, presented the award to Miller major oil companies that are drilling complete escape from the royalties personally. And he said of Miller, ‘‘This in the Gulf of Mexico are in all likeli- owed to the taxpayers for the develop- marks the first time in this conflict in hood not going to be paying any roy- ment of this oil. They believed, as the this war that such high tribute has alty on billions of dollars, some $65 bil- administration has said, that at a min- been made in the Pacific fleet to a lion worth of oil, that they will be ex- imum they were not going to get oil member of this race, and I am sure tracting from the Outer Continental royalties relief, they were not going to that the future will see others of this Shelf of this country and on which get relief from the payment of the rent race similarly honored for these brave they would be expected to pay some $7 to the taxpayers if oil was over $34 a acts.’’ billion in royalties; and, in fact, they barrel. Well, as we all know, the world Admiral Nimitz mentioned Miller’s may not be paying that. It may go even price of oil today is hovering around race because he was black. The Navy further that some of the majors have $60 a barrel. It has been as high as $70, had been integrated, but segregated re- suggested that they are not required to and it has been in the mid-50s, back sponsibilities. So Miller, since he was pay any royalties on oil extracted from and forth. black, he was assigned to being a cook the Outer Continental Shelf. In that The fact of the matter is these very on the ship. He was not required to be case, the cost to the taxpayers would same oil companies that are seeking a topside manning that .50-caliber ma- be maybe $35 billion, $35 billion in lost royalty holiday, freedom from the pay- chine gun on December 7, but he was revenue to this country at a time when ment of these royalties, have just re- there. He voluntarily helped protect we are running record deficits, at a ported the biggest profits in the his- his ship and protect his captain. By the time when we are telling people we tory of these companies, in the history way, Mr. Speaker, in the movie ‘‘Pearl cannot afford to help them with their of the world in the oil industry. And at Harbor,’’ Cuba Gooding, Jr., portrayed home heating oil, at a time we are the same time, they are suggesting Doris Miller in his actions on Decem- making basic cuts to basic education; that they have no obligation to pay the ber 7. and it goes on and on and on and on. taxpayers of this country what is due

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00018 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — HOUSE H245 them for the privilege of drilling on the was thriving in this nation, exporting cussed the critical partnership which is Outer Continental Shelf. terrorism and promoting archaic extre- developing between our two nations. Today, some of us introduced legisla- mism. Today media, cultural, business, Both nations are committed to fur- tion to prevent any future royalty holi- and political leaders are free to meet, thering our alliance, which has already days for the oil companies, to seek and to discuss, to demonstrate and guide borne much fruit, with the knowledge direct the Minerals Management Serv- policies which are reforming their na- that neither nation’s goals will most ice to renegotiate these leases so that tion’s economy, opening the political effectively be realized without the it does include the provisions of a min- process, and liberating society from friendship and deep cooperation of the imum of a trigger but hopefully even a the fundamentalist laws which other. better royalty policy than that, and if enslaved their nation. In our meeting, the Speaker ex- those companies do not want to cooper- This overwhelming progress has been pressed his hope that the Afghan peo- ate with that renegotiation, then they made under leadership of President ple will serve as a ‘‘bridge to democ- should be barred from future bids on Hamid Karzai. Having met with Presi- racy for other peoples of the region.’’ the Outer Continental Shelf. dent Karzai, I am assured that he is a I share the Afghan Speaker’s hope, Now, to their credit, some of the capable and determined individual and and I am confident that the inevitable major oil companies are suggesting he is able to continue to guide his na- spread of freedom and democracy will that, in fact, they do owe the royalties, tion into a transition to a modern de- protect and preserve the American way that there is a trigger mechanism. But mocracy. To help facilitate this, Karzai of life here at home and make it avail- Kerr-McGee and apparently some other and the Afghan Government are seek- able to those currently oppressed companies have decided that they are ing to implement the Afghan Compact, abroad. going to challenge the whole law. They which is a commitment to achieve spe- The undeniable progress that continues to believe they are not obligated to pay cific goals relating to security, to the be made in Afghanistan makes peace, secu- any of these royalties, there is no trig- rule of law, to human rights, to eco- rity, and prosperity all the more assured and ger in this law. If that is the case, the nomic development, to the elimination protected—for Americans as well as Afghans. of narcotics trade within 5 years. taxpayer is just going to be hung out to f dry by the major oil companies, and The task ahead remains difficult. It the major oil companies are going to remains lengthy. But with the sus- FURTHER MESSAGE FROM THE abscond with the natural resources tained help of the United States and SENATE other international donors and espe- that belong to the people of this coun- A further message from the Senate cially the demonstrated optimism and try. by Ms. Curtis, one of its clerks, an- the resilience of the Afghan people, I It is wrong and Congress ought to nounced that the Senate has passed am confident that the goals of this correct it. without amendment concurrent resolu- compact will be realized. f The progress being made in Afghani- tions of the House of the following ti- The SPEAKER pro tempore. Under a stan also has serious implications for tles: previous order of the House, the gen- our own Nation’s security. Our con- H. Con. Res. 71. Concurrent resolution ex- tleman from California (Mr. DREIER) is gressional delegation conveyed to Af- pressing the sense of Congress that there recognized for 5 minutes. ghan leaders that Congress remains should be established a Caribbean-American Heritage Month. (Mr. DREIER addressed the House. deeply concerned about the mounting His remarks will appear hereafter in H. Con. Res. 315. Concurrent resolution bloodshed in this Nation and over the urging the President to issue a proclamation the Extensions of Remarks.) ongoing narcotics trade which supplies for the observance of an American Jewish f over 90 percent of global opium and History Month. WITNESS TO AFGHANISTAN’S heroin. f PROGRESS My colleagues and I were also able to The SPEAKER pro tempore. Under a meet with high-ranking U.S. military previous order of the House, the gen- Ms. ROS-LEHTINEN. Mr. Speaker, I officials, including Commanding Gen- tleman from Maryland (Mr. WYNN) is ask unanimous consent to take my eral John Abizaid, to discuss the cur- recognized for 5 minutes. Special Order at this time. rent military situation on the ground. (Mr. WYNN addressed the House. His The SPEAKER pro tempore. Is there I left impressed with our military’s remarks will appear hereafter in the objection to the request of the gentle- success against the insurgents and con- Extensions of Remarks.) woman from Florida? fident in our decisive victory over it. There was no objection. Afghanistan was the first foreign f The SPEAKER pro tempore. Under a front in our campaign to eradicate ter- LIHEAP AND NATURAL GAS previous order of the House, the gentle- rorism, and the success that we have PRICES woman from Florida (Ms. ROS- had in eliminating the Taliban and es- LEHTINEN) is recognized for 5 minutes. tablishing a democratic government is Mr. GENE GREEN of Texas. Mr. Ms. ROS-LEHTINEN. Mr. Speaker, monumental and undeniable. In this Speaker, I ask unanimous consent to while leading a congressional delega- area, however, our job is not complete, take my Special Order at this time. tion to Afghanistan, I was struck by and America must not yield in our The SPEAKER pro tempore. Is there the progress that the Afghan Govern- commitment to our troops and to their objection to the request of the gen- ment is making toward establishing a noble efforts. Standing side by side tleman from Texas? democracy, as well as with the enthu- with its Afghan counterparts, our mili- There was no objection. siasm and the determination of the Af- tary will continue to actively seek out The SPEAKER pro tempore. Under a ghan people to finally and deservedly and destroy terror elements and work previous order of the House, the gen- live in a free society. toward establishing complete stability tleman from Texas (Mr. GENE GREEN) The purpose of this trip, which also and a transparent rule of law so that is recognized for 5 minutes. included stops in Iraq and Kuwait, was Afghanistan will never again be a safe Mr. GENE GREEN of Texas. Mr. for Members of Congress to see first- haven for terrorists. Speaker, I would like to bring atten- hand the efforts being made toward At a time when many are questioning tion tonight to an issue that both the U.S. goals of bringing stability and de- the legitimacy of U.S. efforts abroad, House and the Senate have been debat- mocracy to these nations. Afghanistan serves as the perfect ex- ing. Low-income Americans are strug- In Afghanistan, where the prospects ample of why our efforts to bring sta- gling to pay for heating bills this win- for reform once looked bleak, a trans- bility, freedom, and security are cru- ter. Thankfully, this winter has not formation has occurred which has res- cial, just, and attainable. Clearly, the been as cold as expected, and heating urrected freedom, established legiti- new Afghanistan is emerging as one of bills have not increased as greatly as mate leadership, and reinvigorated the our closest allies in our fight against feared. population. extremists. Less noticed, however, is that our It is difficult to imagine that a mere While meeting with the Speaker of low-income Americans also struggle to 5 years ago the Taliban government the Afghan Parliament, he and I dis- pay cooling bills. When the 90- and 100-

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00019 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE H246 CONGRESSIONAL RECORD — HOUSE February 14, 2006 degree heat rolls around this year, the Reported causes of death are unreli- tory tells us that Southern states and cooling situation is going to become very crit- able. The American Meteorological So- needs will see very little, if any, of that money. ical very quickly. Air conditioners run ciety found several peer-reviewed aca- Unsurprisingly Southern members have on electricity, and a lot of electricity demic studies showing that heart at- placed a hold on the bill. comes from natural gas. Natural gas tack and stroke rates increased during The only solution is changing the LIHEAP prices have more than tripled in the hot weather. These heat-related deaths formula. last 3 years, from $3 to $4 per thousand are often attributed to those other The House Energy and Commerce Com- cubic feet to $10 to $15. causes like heart disease and stroke mittee nearly accomplished a fairer formula These costs are really hitting home and are not recorded as heat-related during the energy bill debate, where my as State public utility commissions, deaths. amendment would have lowered the ‘‘trigger’’ PUCs, are increasing fuel charges on The society’s study found cold snaps to $1 billion to make a difference. electric bills. The need for relief is do not cause death rates to go up Northeastern and Midwestern members pro- going to be intense this summer, but versus average winter death rates, but tested and offered a compromise to increase the Federal Government’s Low-Income extreme heat causes death rates to go the authorization to $5 billion, which many of Home Energy Assistance Program, also up dramatically in the summer. As a accepted at the time as a good faith offer. called LIHEAP, is going to do next to result, the LIHEAP program is clearly However, the budget reconciliation bill re- nothing to help. For example, over completely divorced from reality. Heat vealed the true motive to deny funding for 60,000 Houston area families got their kills more, but LIHEAP ignores cool- cooling assistance and to deny much needed power cut off in the summer of 2001 and ing assistance. LIHEAP funding for Southern, mid-American, only 14,443 people received 2001 cooling The LIHEAP program is so biased be- and Western states. assistance statewide in Texas. cause the funding formula is outdated. Along with my colleagues CHIP PICKERING, b 2000 LIHEAP is based on an obsolete for- MIKE ROSS, CHARLIE GONZALEZ, MICHAEL BUR- How can that be? The problem is that mula that is only still around because GESS, and many others, we will continue to the LIHEAP formula is completely bi- of the political support. The tragedy is push for justice in the LIHEAP formula. ased toward heating costs and ignores that this political calculation is con- We can no longer allow Congress to use a cooling costs. Many people believe that tributing to hundreds of preventible 25 year old formula to ignore hundreds of pre- LIHEAP is a cold weather State pro- deaths annually. ventable deaths every year—it is unconscion- gram only. In the Northeast, the Mid- Here are a few of the factors that go able and outrageous. into the current LIHEAP formula: A west coalition lobbies for it and my f ratio of State and national low income Northeast and Midwest colleagues talk The SPEAKER pro tempore (Mr. most about the program. households in 1979; residential energy expenditures in 1979; a State’s annual CONAWAY). Under a previous order of The media tends to cover LIHEAP the House, the gentleman from Indiana funding issues only during the winter average number of heating days be- tween 1931 and 1980; the number of a (Mr. BURTON) is recognized for 5 min- months. The shocking facts are that 3 utes. percent of LIHEAP funding goes to- State’s households at or below 125 per- cent of Federal poverty in 1980; a (Mr. BURTON of Indiana addressed ward cooling homes in the summer, the House. His remarks will appear and 74 percent goes toward heating State’s increase in home heating ex- penditures in 1980; the increase in total hereafter in the Extensions of Re- homes in the winter. Incredibly, marks.) LIHEAP spends three times more on home residential heating expenditures administrative costs than it spends between 1977 and 1980; and also 75 per- f saving lives from heatstroke. cent of each State’s 1981 crude oil wind- AMERICA IS NOT WINNING ON THE States like Texas, Florida and Cali- fall profits tax formula. TRADE FRONT fornia that have large low-income pop- This is a formula that is just ridicu- ulations vulnerable to hot weather get lous, and we need to update it. As we Ms. KAPTUR. Mr. Speaker, I ask almost no funding. Low-income people can see, this information is over 25 unanimous consent to take the time of in New York, Ohio and Pennsylvania years old and completely irrelevant to the gentleman from Indiana (Mr. BUR- receive eight or nine times as much modern reality. The fact that the pri- TON). LIHEAP per low-income resident. mary LIHEAP formula still uses data The SPEAKER pro tempore. Is there In Texas, we have 3.7 million people from the date of the disco is unbeliev- objection to the request of the gentle- who are eligible for LIHEAP due to in- able. There is absolutely no excuse for woman from Ohio? come, but only 4.5 percent receive any the program to allocate life-saving There was no objection. assistance. The State of Texas canceled money based on such a formula. The SPEAKER pro tempore. Under a its Low Income Energy Assistance Pro- While supporters of the current for- previous order of the House, the gentle- gram as electric bills were on their way mula defend it by pointing to the $2 woman from Ohio (Ms. KAPTUR) is rec- up, and our constituents have nowhere billion trigger, it is a red herring. Our ognized for 5 minutes. to turn. Northeast and Midwest friends and col- Ms. KAPTUR. Mr. Speaker, America The cold weather bias is unaccept- leagues insist the rising tide lifts all is not winning on the global trade able, because hot weather kills just as boats. Once the funding gets above $2 front. Last Friday, the U.S. Depart- many or more people than cold. Ac- billion a year, a new formula directs it, ment of Commerce announced the cording to the National Weather Serv- but Congress has seldom voted over $2 United States has the largest trade def- ice, which uses media reports and local billion. icit in our history. So many more im- government information, from 1985 to It is true that there is a trigger and this ob- ports are coming in here than exports, 2000 there were 2,596 fatalities caused solete formula goes away for appropriations and every American can affirm that by heat, an average of 235 per year, and over $2 billion. However, Congress rarely every time they go to shop. 462 fatalities caused by cold, an aver- goes over that $2 billion dollar trigger, and At $725 billion in the red in 2005, that age of only 24 a year. when they do, they use accounting tricks to is three-quarters of a trillion dollars, It is scandalous that LIHEAP pro- avoid the modern, fair formula. our trade deficit is growing at a rate of vides 3 percent of the funding for cool- For example, members in the other body more than $1,500,000 every minute. This ing, and hot weather kills 19 times are trying to move $1 billion in LIHEAP fund- total is more than 18 percent higher more people than cold weather. How- ing from the reconciliation bill from fiscal year than one year ago. ever, a peer-reviewed study at the Uni- 2007 to 2006. That would mean a total appro- Sectors such as agriculture, as well versity of Delaware shows that over priation of $3 billion, including what Congress as manufacturing, which once sus- 1,000 people die from heat in the 15 big- has already done, which should help for cool- tained a thriving economy here, are gest cities alone in the average sum- ing. now withering. For every billion dol- mer, well over either government esti- However, the reconciliation bill put $750 mil- lars in deficit, we are shedding a min- mate. So neither National Weather lion of that extra $1 billion into a ‘‘contingency’’ imum of over 10,000 jobs. Workers’ Service nor the CDC data tells the full account that uses no formula and the White wages are not rising, their pensions are picture. House can do whatever it wants with it. His- being cut, health care costs are going

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00020 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — HOUSE H247 up, and this is a major contributing sponsors so far, this bill will require cated that this administration, along factor. action from any administration. with the President of the United Our manufacturing sector is deterio- With the red ink getting deeper and States, well knew that the levees were rating. Since the year 2000, 3 million deeper every minute, with American spilling over. They knew how cata- more manufacturing jobs, good jobs, workers losing, with American commu- strophic the storm was going to be 48 have been outsourced. The 2005 deficit nities losing, we need action, not more hours out, and it was sufficient time in autos, trucks and automotive parts whitewashing. What a shame that for this administration to call for mili- is $138 billion, the worst ever. Those Washington is so out of step with what tary resources and other resources. We are dollars we used to put in our own is happening on every Main Street and know that there were deployed mili- pockets, the pockets of our workers, every manufacturing and every agri- tary vessels off the coast that could the pockets of our shareholders, the cultural sector of this country. have provided for evacuation of thou- pockets of the executives. This indus- f sands upon thousands of individuals. try was once at the cutting edge of the The SPEAKER pro tempore. Under a We also know that no response was world and the mother of invention. previous order of the House, the gen- given. In fact, according to the testi- mony, under oath I understand, of Today, we have become an assembly tleman from Arizona (Mr. FLAKE) is line for imported parts. recognized for 5 minutes. former Director Brown, one of the staff Our Trade Representative, Ambas- (Mr. FLAKE addressed the House. His persons of the FEMA office flew over sador Portman, comes from my home remarks will appear hereafter in the the levees and saw them spilling over. The irony of all this the response was State of Ohio. He should be intimately Extensions of Remarks.) ‘‘we didn’t know whether it was just a aware on a global scale that it is just f not a level playing field that parts pro- leak or whether or not the levees had ducers and other exporters face. Yet POINTING FINGERS WHILE ROME broken.’’ My friends, there are those the deficit in the auto sector, which BURNS who can drown in a teaspoon of water. once provided a path to the middle The SPEAKER pro tempore. Under a The fact that the water was spilling class for millions of Americans through previous order of the House, the gentle- over was enough reason for them to living wage jobs, keeps going more and woman from Texas (Ms. JACKSON-LEE) act. more in the red, another 20 percent just is recognized for 5 minutes. What about the aftermath? What last year. It seems every week we hear Ms. JACKSON-LEE of Texas. Mr. about the fact that now in Hope, Ar- kansas, isn’t it interesting, quite about another plant shutting down, Speaker, it is interesting that, while funny, if you will, hope, hope and more layoffs, the most recent set of Rome burns, the administration spends dreams of Americans, in Hope, Arkan- companies, Delphi. its days pointing fingers at each other. In agriculture, which used to be As the continuing disaster in the Gulf sas, 10,000, 10,000 mobile homes are now America’s savior, our global trade bal- region continues to burn and to fuel its languishing in disaster. $431 million ance in agricultural products showed a own fire, we now have administration was spent for these mobile homes that are now sitting there, the wrong size, mere $27 billion surplus in 1996. That officials, both ex and those who are sinking in the mud. And now, in addi- has gone down from $27 to $4 billion, still in office, raising the question of tion, adding insult to injury, the $431 and it is projected we are going to be- who knew what when, while those of us million, which no one knows whether come a net food importer. America, the in the Gulf region, in Texas, Louisiana, there was any bid criteria, any criteria richest agricultural nation in the Mississippi and Alabama, are con- whatsoever for the purchase of these world, a food importer? That is what is tinuing to contend with the tragedy of particular mobile homes, was there any happening. Hurricanes Katrina and Rita. In fact, bidding, was this a no-bid contract, was Yet the agreements that this admin- there are 44 States around the Nation this another waste of money from the istration has signed, including CAFTA, where Katrina survivors languish with- taxpayers, by FEMA, these homes are will encourage countries like Brazil out opportunities to return home. now languishing in Hope, Arkansas, as and El Salvador to undermine one of Rather than the administration hav- indicated by our colleague from Arkan- our most promising agricultural sec- ing real concrete solutions, such as the sas, languishing there, not being able tors, ethanol, because CAFTA will right of return to the region, where to be utilized by the thousands who, allow Brazilian ethanol transhipped FEMA provides a return ticket to all one, want to come home and, two, are through Central America to undermine those families who are desiring to in the region. that promising agricultural sector of come and be reunited with their family Mr. Speaker, it is both a crime and it our economy. members or to come home, there is no is a shame. As I said earlier, Rome is And what is the Bush administration answer at the end. Rather than offering burning. The administration was at through Ambassador Portman doing to non-concrete solutions, solutions that fault, Secretary Chertoff was at fault, stop these hemorrhages? Nothing. Just are just whitewashing, of course, the as were all of those who sat and did issuing reports. There is no new en- administration protects its own. nothing while people died. forcement actions, no special bilateral They protect Secretary Chertoff, who It is imperative that we not white- talks with countries with which we are for one was not in charge, not because wash the House of Representatives re- massing these huge deficits. Today’s former FEMA Director Brown said so, port, that we have a full 9/11 inquiry re- Congress Daily reports Ambassador but because I know so. Because within port and that we immediately address Portman issued a report reviewing Chi- 2 days of the storm, I dialed, as a mem- the question of removing FEMA from na’s trade practices; China, a most un- ber of the Homeland Security Com- the Homeland Security Department democratic nation that represents an mittee, Secretary Chertoff’s number and making it a full, free-standing de- alarming chunk of this growing trade over and over again. As someone famil- partment. deficit that we have amassed. Indeed, iar with the region, I understood that Unlike Mr. Brown, I am not inter- our trade deficit with China is at an disaster was at hand. You could not get ested in pitting natural disasters all-time high, over $200 billion, dollars one return phone call from the Sec- against man-made disasters. 9/11 stands we used to put in the pockets of Amer- retary to a member of the Homeland as a horrific disaster in the history of ican workers. Security Committee. America. What I am looking forward to Mr. Portman did note that the trade It might be that I was a Democrat is that they stand equal in the eyes of relationship between the United States and therefore did not count. But thou- this administration, equal in the eyes and China ‘‘lacks equity and balance.’’ sands upon thousands of people were of resources, equal in the eyes of Amer- Yet his report does absolutely nothing being sent to their death if they could icans being able to count when they to change it. not get any additional help. We lost are in need that there will be the Fed- By contrast, my bill, the Balancing 1,000-plus. There are 4,000 still missing, eral Government to provide them with Trade Act of 2006, H.R. 4405, would re- and there has been no definitive re- resources, to provide them with assist- quire action in the face of consistent sponse from this administration. ance. deficits of more than $10 billion with a Testimony of former FEMA Director All of this name calling and finger single country. With 21 bipartisan co- Brown in the last 48 hours has indi- pointing and who was in charge and

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00021 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE H248 CONGRESSIONAL RECORD — HOUSE February 14, 2006 who was not gives no comfort to those personally I see it in my own new son. So what we did was we reduced rev- who are still suffering, such as Alvin, What is disturbing is the trend that we enue in 2001, and we have increased who is not getting any money for re- are on right now, because there are spending; and we have not gone back building his house. going to be times when the economy is and tried to adjust for this new world Mr. Speaker, I believe Mr. Chertoff good and times when the economy is that we live in. should be held accountable and, if nec- bad, and sometimes revenues are going So what is so disturbing about this is essary, should resign; and, likewise, to be up and sometimes revenues are since 2001 the debt held by non-govern- FEMA should be moved out into an going to be down. mental agencies has increased by $1.4 independent, free-standing department. And there may be times when a def- trillion. Now, if that were not bad f icit occurs for valid reasons. But when enough, you know how much of it we you are in a deficit situation, what you borrowed from foreigners? Almost 90 2015 b want to do is you want to have a plan percent: $1.16 trillion has been bor- The SPEAKER pro tempore (Mr. for working your way out of that debt. rowed from foreigners, primarily Asia, DAVIS of Kentucky). Under a previous The concern I have is that we do not China and Japan, who together own order of the House, the gentleman from see that plan on the horizon. What we over $1 trillion worth of IOUs from Mr. Georgia (Mr. KINGSTON) is recognized see instead is an ever-increasing MATHESON’s little boy and others, me, for 5 minutes. amount of debt over time. everybody else in this country that is a (Mr. KINGSTON addressed the House. Let us put it into context. From 1789 citizen. His remarks will appear hereafter in until the year 2000, the total debt that So what we are trying to alert the the Extensions of Remarks.) was incurred by this country was $5.63 American people to is that this coun- f trillion. But by 2010, the total national try has a broken economic game plan, The SPEAKER pro tempore. Under a debt will have increased to just under and we do not like the remedies that previous order of the House, the gentle- $11 trillion. So we will have doubled are being prescribed for this deal by woman from South Dakota (Ms. the 211 years’ worth of debt in just 10 the current administration and the HERSETH) is recognized for 5 minutes. years. current Congress. (Ms. HERSETH addressed the House. You do not need to get out your cal- Now, I said the other night, half jest- Her remarks will appear hereafter in culator to figure out that that is not a ing, it is so bad now and getting worse the Extensions of Remarks.) good trend, and it is increasing at way by the second, I am going to tell you in f too fast a rate. So now more than ever a minute how much we are borrowing it is time for us to stand up in a states- every second, that if China attack Tai- BLUE DOGS FOR CHANGE man-like way and make the decisions wan, we would have to borrow the The SPEAKER pro tempore. Under that are going to be tough decisions if money from China to defend Taiwan. I the Speaker’s announced policy of Jan- we are ever going to get a handle on say that tongue in cheek; but if you uary 4, 2005, the gentleman from Utah being fiscally responsible. look at where we are, we do not have (Mr. MATHESON) is recognized for 60 That is what we are here to talk the money, and we do not have the minutes as the designee of the minor- about tonight as the Blue Dog Coali- ability to seemingly right this ship of ity leader. tion. I have been joined by some of my state. Mr. MATHESON. Mr. Speaker, it is colleagues from the Blue Dog Coali- Now what are the consequences? indeed always an honor to have an op- tion. I am honored to be associated There are consequences to actions. portunity to speak on the floor of the with all of them. What are the consequences of this un- House of Representatives. Mr. Speaker, I am happy to call on precedented borrowing that has taken And tonight I join with fellow mem- them at this time, and I would like to place here in the last 48 to 60 months? bers of the Blue Dog Coalition. The first recognize my colleague from the Unless one is able to repeal the laws of Blue Dogs, as you know, is a group of great State of Tennessee (Mr. TANNER). arithmetic, interest rates must go moderate to conservative Democrats in Mr. TANNER. Mr. Speaker, I thank higher. Every reputable economist says the House of Representatives, a group the gentleman for yielding to me. that. What does higher interest rates that has taken positions on many I have been here before with the Blue mean? Well, it means more finance issues over the years, and a particular Dogs because it is about the only op- charges on every American’s credit issue which the Blue Dogs have a solid portunity we have to discuss what we card. It means cars and homes cost reputation on is that of promoting fis- all believe, as Mr. MATHESON said, a more. All of the things that we buy on cal responsibility for this country. trend line that is leading us to a finan- time will cost more. And it crowds out And that message is needed now cial Armageddon. There is no other private investment that creates new more than ever, and the Blue Dogs are way that one can look at it. jobs in this country, because the inter- going to continue to speak out in I have been talking about and writ- est rates cripple one’s ability to invest terms of what we think is the right ing about the fact that our country is in new plants, new equipment, mod- thing to do for this country and par- currently borrowing more money faster ernization, all of those things. ticularly for future generations in this than any previous political leadership That is the consequence of a willful country. in the history of the United States. and deliberate plunge into debt that is You know, I just had a new addition To give you some idea, and I wish I taking place here in Washington, DC. to my family about a month ago, had a were making some of this up, but if It eventually will mean higher taxes. little boy born into my family. And the anyone cares to go to the Web site of Did you know that $16 out of every day he was born, he already owed over the public Treasury, $100 that comes to Washington now $27,000 to the United States of America. www.publicdebt.treas.gov, you can see goes not for health and education and Because if you take our national debt for yourselves there what I am about troops, it goes to pay interest? Now, and divide it over our whole popu- to talk about. this inability of the government to in- lation, that is about how it calculates What happened in this country, basi- vest is going to catch up with us. out. cally, is two things: one is we em- There are three things, basically, And that little boy entered this barked on an economic plan for Amer- American families, my friend the gen- world with that kind of debt hanging ica in June of 2001 that assumed var- tleman from Kansas (Mr. MOORE) says, on him not having had anything to do ious things that would happen in the three things, basically, that American with that debt. He was not around future. In so doing, the outlook was for families live by: one is live within your when the money was spent, was not in- a $5 trillion surplus over the next 10 means; second is pay your debts; and volved in the decision-making that cre- years. the third is invest in the future. In ated that debt. And I find it appalling We all know what happened on 9/11 in other words, save money for your kids’ that we allow this to continue to take the year 2000, some 21⁄2 months after college education or for your retire- place and grow in terms of a problem. this economic plan was adopted. The ment or something. I see this as a moral obligation we economic plan has not changed, but ev- Your government is not doing any of have to future generations, and for me erything else in the world has. the three. We are not living within our

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00022 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — HOUSE H249 means, deficit spending every year for That is how much money we are bor- Mr. MATHESON. I appreciate those the last 4. We are not paying our bills; rowing. Last year, the fiscal year 2005, comments from my Blue Dog col- we are borrowing the money. We are the net interest last year we paid was league, Mr. TANNER. He is one of the borrowing the money to fight the war $184 billion. Do you know how much in- leaders of the Blue Dogs, and he has in Iraq and Afghanistan, and giving the terest checks are? That is $15 billion a been a real voice of reason in Congress. soldiers who return home the bill with month in interest, $511 million a day in I appreciate him taking the time to- interest. interest, $21 million an hour in inter- night. If that is not immoral, I do not know est, $354,000 a minute in interest, and Mr. Speaker, I would like to recog- what is. These guys and women, too, $5,900 a second that we are paying in nize my Blue Dog colleague from the are giving their lives sometimes, their interest because of this growing debt. State of Georgia, Mr. BARROW. legs, their arms, everything else. And I was trying to put this in some kind Mr. BARROW. Mr. Speaker, I want to what do they get from us? They get a of context; I guess this is about the address an issue that is important to bill when they get back with interest best I can do. If you have $1,000 bills, all the families that I represent; and it for what they did for this country. $1,000 bills, and you stack them like is just being abandoned in this 2007 And the other consequence of this is that, to get to a million dollars, it will budget proposal submitted to Congress. what our friend from Nebraska (Mr. be about a foot high. To get to a billion I am talking about support for our OSBORNE) said earlier tonight. We are dollars, $1,000 bills stacked like that, it local police officers and law enforce- having to zero out the drug task forces is as high as the Empire State Build- ment agencies, men and women on the in this country that are the front line ing. And a trillion dollars is 1,000 bills, frontlines of homeland security, pro- to try to keep our young people from 1,000 times the height of the Empire tecting our communities and patrolling getting hooked on these drugs like State Building. our neighborhoods. methamphetamine and so forth that It is staggering. It is the most unac- Large cities in my district like Sa- will rob not only them of their future countable, irresponsible activity that I vannah are dealing with a rise in vio- but will rob this country of their abil- know any political leadership in the lent crime. At the same time, many of ity to contribute to a free and strong history of this country has engaged in our smaller rural communities in Southeast Georgia and all around the land. knowingly, willfully, and deliberately. The other thing is, when we continue country are fighting an epidemic of And it is going on tonight, and it will to do this, we degrade the tax base so meth labs. Mr. Speaker, we cannot af- go on when this budget is presented on that more and more money that comes ford to let drugs and violent crime con- the floor here. Because there is no ac- here is not available for any invest- tinue to go up in this country. For countability. ment by the government in infrastruc- more than 14 years, homicide was on We do not have any hearings particu- ture or human capital. the decline in this country. That larly on holding people accountable. What do I mean by that? I mean in- changed last year. According to the You have heard a lot about that. Well, frastructure, that only the government latest figures from the FBI, homicide the Blue Dogs have tried to do a couple can do, whether it is dams, roads, rose by 2.1 percent in the first 6 months of things. The first thing we did, or bridges, airports, all of the things that of 2005, the first increase since 1991. tried to do, to fix it was to reinstitute allow private enterprise to move in and That is unacceptable, and these cuts in around the infrastructure and create PAYGO rules. That is something every this budget are unacceptable. jobs and create opportunities for our American family does. If you decide The COPS program, cut by $376 mil- citizens. That is not being done be- you want to spend some money, you ei- lion. During the ’90s, we figured out cause there is no money for it. It is ther have got to raise the money to what works in reducing crime. More going to pay interest on the national pay for it or you have got to cut the police officers on the streets makes debt. budget somewhere else that is of a less- them safer and reduces crime. The And when we do not do that, just go er priority and fund it that way. COPS program helps our community to any country on the face of the Earth PAYGO rules were allowed to expire. hire, train, retain and equip our police that has no infrastructure and see how The majority will not let them come officers. But this budget cuts this pro- many people are doing pretty well. No- back here, and that is one of the rea- gram by 78 percent. body is, because there is nothing for sons that we keep digging deeper. The The Byrne Justice Grant Program, private enterprise and entrepreneur- other thing we have recommended, or completely eliminated. Byrne JAG ship to build to. tried to recommend actually, is that in grants help State and local law en- The other thing we are not doing is addition to the PAYGO rules, and we forcement agencies identify and break investing in human capital. If this are going to do this, we are going to up regional drug syndicates. This budg- country is going to remain strong and unveil an accountability plan, the Blue et completely eliminates that program. free, the citizenry of this country must Dogs are, that is going through every Why would anyone want to do that? have a good education and must have Federal agency, the IG reports, to pick If you think that a rise in violent good health care. out the programs that are ineffective, crime is an issue that Congress should We are robbing ourselves of the abil- duplicitous, or otherwise do not work ignore, then this budget is for you. If ity to invest in education and health and cut them. And we will have that you think we ought to be cutting back care because of this ever-growing bur- coming out. We are working on it right on the tools we give our police officers den of debt and interest that takes now. to keep our neighborhoods safe, then away from the tax base of the taxes we b 2030 this budget is for you. all pay. There has never been, if one In the short time since the President reads history, there has never been a The lack of accountability here, the dropped this budget, I have discussed country that is strong and free with an lack of responsibility here, cannot go this budget with sheriffs and police unhealthy, uneducated population. It is on; and the American people need to chiefs all across my district; and the not possible. really pay some attention to this. We verdict is unanimous. These budget And yet as this trend line continues, have a birth tax of $27,000. That is hid- cuts are hurting and not helping local as Mr. MATHESON said, this is exactly eous. It is not right. And this genera- law enforcement. We need to do more, where we are headed. Now, again, you tion has got to bear most of the blame. not less, for our police officers. can go to the Treasury Web site and My generation has to bear most of the Mr. Speaker, I urge my colleagues to see what I am talking about. blame because we are simply not doing oppose the proposed budget cuts to the Last year, the deficit was $319 billion. the three things that American fami- COPS program and to oppose the com- To put that into something that hope- lies do every day, and that is live with- plete elimination of the Byrne JAG fully we can all understand, that is $26 in our means, pay your debts and in- grants. Our local police deserve all the billion a month, $886 million a day, $36 vest in the future. tools that we can give them to protect million an hour. By the time we finish If we do not change this, Mr. Speak- our families. We need to give them this hour, this Blue Dog hour, we will er, then I fear more tonight for my more help, not less. have borrowed another $36 million. It is country’s future than I ever have in the Mr. MATHESON. Mr. Speaker, I $615,000 a minute, and $10,200 a second. 60 years I have been on this earth. think what you heard here, Mr. TANNER

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00023 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE H250 CONGRESSIONAL RECORD — HOUSE February 14, 2006 first alluded to it and then Mr. BARROW the greatest economic and military would be and the expenses would be for gave a more elaborate description of machine on the face of the Earth. the coming year. That is honesty in proposed reductions in local law en- Expand the middle class, Mr. Speak- budgeting. And out there in the coun- forcement funding, and that is the ex- er, to expand the middle class you have try our constituents have to do it in ample of the squeeze that is on. The to have a well-educated and healthy running their own homes. They do it in deficits that we are incurring and the population, and those are functions running their own businesses, and they increased interest costs, and, by the that our government has to be involved certainly have to do it in running their way, interest expenses are one of the in. We have to be providing a good edu- own local governments and school fastest growing components of the Fed- cational system for our children. We boards. eral budget today. And with that in- have to ensure, if we are going to stay We certainly could expect that the creased interest cuts you are squeezing competitive in the world, Mr. Speaker, Federal Government could be honest in other programs. that each generation is better educated presenting this budget to the American Some of these programs mean a lot. than the previous generation. You have people. So I would hope, Mr. Speaker, Local law enforcement grants are to have a good health retirement sys- and I would ask my colleagues to join something that I think most people in tem. You have to have a good income in as we have this discussion about ac- Congress think are a good idea. And retirement system. countability and honesty in budgeting, the notion that we have a budget pre- Prior to the implementation of So- that we can as a Congress be a little sented to Congress that zeros that out cial Security and Medicare in this more honest with the American people is something that is not going to be re- country, if you reached the age of re- about what the cost of some of these ceived well here, I would think. But, tirement, age 65 in America, there was programs are that we are involved in again, it is a reflection of the pressures a great chance, over a 50 percent and how we are going to pay for them. that these increasing deficits are put- chance, that you would be below the I do know something for a fact, Mr. ting on the situation; and that is why poverty level. Less than 10 percent of Speaker, that you cannot increase it is just another example of why it is our folks today live below the poverty spending, cut taxes and cut the deficit so important we try to get a handle on level because of this great economic all in one lick. The math does not does this program. model that we have created which not work. I learned that in grade I now recognize my colleague from strives to expand the middle class. So- school. It is a simple mathematical Florida, Mr. BOYD. cial Security and Medicare were impor- calculation. You cannot increase Mr. BOYD. Mr. Speaker, I want to tant components of that. spending, cut taxes, and decrease the thank my friend and colleague, Mr. Why do I talk about the expansion of deficit. It just cannot be done, and that MATHESON from Utah, who is our dis- the middle class and the economic is what evidently this budget pretends tinguished leader of the Blue Dogs, a model? This government has a budget to do. group, Mr. Speaker, that I am very which talks about how it funds its So I hope as we so have this discus- proud to be a member of. I joined when community responsibilities, commu- sion for the next 30 minutes or so that I first came to Congress in January of nity obligations, and that budget pro- we can delve into some of these issues 1997, and I am proud of the work that posal was just presented by the admin- and have a little straight talk. Let us they do in trying to bring to the atten- istration to Congress in the last couple shoot straight with the American peo- tion of the country and of the Congress of weeks. And that budget proposal for ple about what the budget issues are. the importance of the economic model the coming fiscal year which starts on Mr. MATHESON. I appreciate those and making sure that the government October 1 proposes to spend $2.47 tril- comments. I do think people should ex- meets its obligations to the commu- lion. pect an honest budget. I think we all nity and is willing to pay for those ob- Let me say that again. It proposes to know we are going to have troops in ligations. spend $2.47 trillion. But its collections Iraq during the next fiscal year; and Mr. Speaker, we live in the greatest to pay for that $2.47 trillion amount to the fact that this budget does not list country on the face of the Earth. I like $2.15 trillion. That is a budget deficit of a dollar to fund that, in and of itself, to tell my constituents back home approximately $318 billion. That is tells you that this budget is not an ac- when I speak to Kiwanis Clubs or civic after we spend all of the Social Secu- curate reflection of the expenses that clubs that we have 5 percent of the rity surplus masking the much larger this government is going to face in the world’s population. That is about one deficit. next year. of every 20 people in the world live in But the problems do not stop there. That is not being honest. That is not America. And we control 25 percent of The budget does not even address the being straight with people. We know the world’s wealth. costs of the war effort in the Middle we are going to incur that expense. We We got into that position in a rel- East, in Iraq and Afghanistan, in the ought to acknowledge we are going to atively short period of time. It is less coming year. It does not address some incur that expense, and we do not do it, than 230 years this year we have been a other issues which we know as a Con- and I think that is something the Blue Nation, and we have done it by cre- gress and a Nation that we have to ad- Dogs feel real strongly about in terms ating an economic model that is unsur- dress, such as the alternative minimum of having honesty and integrity in the passed in the world. tax exploration and some other tax budgeting process and the budget num- That economic model really to me, issues like that. bers. when you break it down, does one So what we have before us as a Con- Part and parcel of that is that we thing. It always strives to expand the gress presented by the administration ought to have planning for contin- middle class and move as many people is a budget that really is not a very gencies. I suspect when Mr. BOYD was as you can out of the bottom rung and useful document for us to start with. developing the budget for the family into the middle class where they can be Mr. Speaker, my wife and I own a farm, for his business, that he had a productive members of our society. In farm, a family farm that has been in line item in there called contingency, the process, you narrow the gap be- my family for over 175 years. And it is because you know that something else tween the very rich and the very poor; not always easy on the farm. It is a is going to come up. You do not know and that served us well over the years. small business. And this past week at what it is going to be. You do not know I remember talking to my parents home I spent a good part of the week when it is going to be. It could be when I got old enough to register to doing a budget. weather related. It could be something vote and asked them about why they Why do I do a budget? I do my budget that you cannot even anticipate, but happened to be registered Democrats. to take to my creditors so they can you know there is going to be an ex- And they said, well, they thought that, provide us the funds we need to run our pense that comes up that you cannot coming out of the Depression in the little small business. I spent a good identify today but it is going to hap- 1920s and 1930s, that the Democratic many days on that budget and did the pen. You cannot estimate with abso- party under the leadership of Franklin very best I could to present to my lute accuracy down to the dollar what Delano Roosevelt really laid the creditors just as accurate a picture as it is going to be, but you know there is groundwork for making this country possible of what I thought the revenues going to be something.

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00024 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — HOUSE H251 And based on your experience and do, if we are allowed the opportunity to a scandal or anything like that. This is based on your judgement you guess- do so, we want to get every one of just basically making the trains run on timate what it is going to be. And those Inspector Generals in here and time, ask the right questions. when you go to your bank, if they are make them tell us what they did with We know that is not happening right helping you finance it, they want you the money. The Congress does not even now, and so you mentioned 16 out of 22 to do that, and they are going to work ask, now what you did with the money major agencies cannot even give you a with you to make sure that is a good that we appropriated to you to the ex- clean audit of their books. The govern- estimate of what a contingency might ecutive branch. We have got basically a ment cannot tell you where they spent be. We do not do that in the Federal one-party government here. They do $24.5 billion in the last fiscal year. Government, but I am sure you do that not ask them; and if they did ask them, That is enough to fund the entire De- when you are planning your own budg- they could not tell them. partment of Justice, and we do not et. This is outrageous. There is not a know where the money is, and Con- Mr. BOYD. Absolutely we do do that. businessperson in America who would gress is not asking the questions. I think most people who run a small go to their comptroller and say here is It should not be a party issue. We all business understand that. Most folks an item of $20,000, what is that for? I ought to be asking these questions; and who run local governments understand could not tell you; I do not know. No- I know the Blue Dogs, as much as any- that. But there is something else in body will put up with that, and yet the body in this Congress, are ready to this budget that we are looking at that American people are putting up with it work with anybody because it is an we received from the administration in in this town every day. America-first issue, not a Democrat or the last few days that really belies any We just borrowed another $18 million, Republican issue. It is about putting thought of sensibility. by the way, since we have been talking. this country in the right position and Mr. BOYD. Mr. Speaker, I know this doing the right thing. b 2045 accountability issue is one that we are So this issue of accountability and A couple of examples: the veterans all very concerned about. I saw some oversight that my two colleagues have medical portion of the budget, we know reports today that in the FEMA re- been talking about rings real true with those are issues that we have to deal sponse to the Katrina and Rita disas- me in terms of what the Framers of the with and we have not dealt with very ters and other storms of 2005, which Constitution asked us to do. That is well in the past. In that budget that we were dreadful and particularly dreadful our role here. We took an oath to up- were presented are significant fees, in- for the people on the gulf coast, but hold that Constitution. My concern is creases in copayments that the vet- one of the tools they used to help the the non-oversight. I hope we do take erans will have to pay. The Congress folks was a $2,000 credit card that action. I hope this conversation helps has rejected that soundly over all the FEMA passed out. I read some reports spur some action in this body, because years that I have been here. So I would today that many of those, maybe as it is the right thing to do. not expect that the Congress would in- many as 30 or 40 percent of those credit Mr. TANNER. Certainly it is the crease the fees on the veterans; but yet cards, were received with fraudulent right thing to do. We take money in- that is in the President’s proposal that Social Security information; and, also, voluntarily away from people in the he sent up. the expenses on some of those cards form of taxation and appropriate it to Student loans cut significantly. I do were for some very unreasonable items the executive branch and then do not not think Congress is likely to cut stu- like tattoos and massages and things even ask them what they did with it. If dent loans. I certainly hope they are that we would not think that nec- we ask them, they could not tell us. not, but that is in the budget. Those essarily the taxpayer ought to be pay- That is outrageous, and the American are the kinds of things that we ought ing for. people ought not to put up with it, and to be honest with the American people So we do need oversight, and one of I hope they will not for too much about, what the costs are, and how are the things that I am hopeful for is the longer. we going to raise the money to make majority party in this body had an Let me say one other thing about the sure those costs are paid for. election here a week or so ago, and consequences of these deficits. We have Mr. MATHESON. Mr. Speaker, I yield there is a new majority leader on the raised the debt ceiling, and we are to the gentleman from Tennessee (Mr. Republican side here. It is my hope and going to have to raise it again either TANNER). I am sure the hope of the Blue Dogs this month or next month. It will be Mr. TANNER. Mr. Speaker, I want to that we can work with him in a way the fourth time we have raised the debt talk about accountability again. An- that we have not been able to work ceiling in 4 years, and the consequences other consequence of what we have with the leaders in the past to try to of this, not only are we degrading the done in the last 48 to 60 months with address some of these issues, because tax base because we are diverting more this unprecedented borrowing has not this issue of one-party rule and lack of and more to interest, but 90 percent of only degraded tax money coming here oversight into the administration’s ac- these interest checks are now being that could have been used for foster tivities is costing the American people sent overseas, not even staying in this children, the poorest, most neglected greatly. I think it is time that we ad- country. and abused citizens in our society, but dressed it and try to do something When one is dependent upon foreign what we are doing is we are not ful- about it. interests that do not see the world as filling the congressional role in the Mr. MATHESON. Mr. Speaker, I we do for their finances, that creates a scheme of things in this country. think that really centers on a funda- vulnerability, a financial vulnerability, We do not have any hearings about mental issue about the way our Con- for our economy, number one; but, two, accountability. I saw on television the stitution was set up. This is not sup- I think it is a national security issue. other night on one of the shows bun- posed to be driven by party when it If one reads history, as we all do from dles of money that they were handing comes to oversight. time to time, one will see that there out in Iraq. They played football with When they wrote up our Constitu- are two things that a country cannot them, and they asked the guy, well, tion, they created the three branches survive if they allow themselves to get where is the audit for that. He said it of government. We all learn this in into that situation. One is for a coun- is nonexistent. We do not know where grade school. It is called the checks try to remain strong and free it must the money has gone. and balances. There is an institutional have the inherent ability to feed and We see Katrina. We see in Hope, Ar- role for the legislative branch to play. clothe its citizens, agriculture. If one is kansas, 12,000 house trailers sinking in We legislate but we also keep an eye on dependent upon a foreign source for the mud at the Hope airport. That is the executive branch and on the judi- one’s food supply, one is necessarily at total incompetence. cial branch, and we do that through risk when that supply chain is inter- What is really disturbing is the Gov- oversight. We are supposed to be ask- rupted. We know that. You read his- ernment Accountability Office reports ing questions. It is all what makes the tory. that 16 out of 23 Federal agencies can- government accountable. It is pursuing The second is economics. When one is not produce an audit. What we want to good government. It is not looking for dependent upon someone else for their

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For in- cally. have gone from the greatest generation stance, I talked about contingency Someone in the administration testi- to the greediest generation, and if our planning when my colleague, Mr. BOYD, fied that it was naive to think that forefathers had borrowed money like plans his family business budget, which China, which holds $300 billion worth of we have seen in the last 48 to 60 we called one of our 12 points for a our paper now, Red China, they say it months, at this pace, I guarantee you rainy day fund, or the Federal Govern- would be naive to think that the Chi- we would not have the standard of liv- ment plans for things that you cannot nese would do anything to hurt their ing that we have enjoyed in this coun- articulate at the start of the year. economic short-term interests. I think try up to now. You said it pretty well Thirty-five States in this country it would be naive to think they would awhile ago when you said this country have rainy day funds. Apparently, we not. That would be the cheapest war was built with investment in infra- thought that was not appropriate for they ever fought against the United structure and human capital, and we the United States of America, but we States. are robbing ourselves of the ability to know every year something happens. My dad told me one time, I tell you do that. Natural disasters may happen. We do something, Son, he said, It is easier to We do not have the drug task forces. not know what it is going to be, but we foreclose a man’s house than it is to If there is anything on Earth we need know we ought to plan. That is one of shoot your way in the front door. When to do in this country it is to try to our 12 points. we are dependent upon China and alert the young people to the dangers We talked about accountability ear- China can say to us, U.S., back off, of that, and the gentleman from Ne- lier, the fact that you can’t get a clean whether we are demanding that they braska (Mr. OSBORNE) spoke, I thought, audit from most agencies. One of our 12 conform to trade standards, we know very eloquently about that. It is zeroed points is, you know what, any Federal what the trade imbalance is with out. agency that cannot give us a clean China, or whether or not they make a We are eating the seed corn, so to audit and properly balance their books, move on Taiwan and we say you cannot speak, with regard to our investing in we freeze their budget at the previous do that, they are getting themselves in the future. I go back to three things year’s level. They are stuck. That has a position to say, U.S., stay out of it, every American family does: live with- some real teeth in it, and that is going or we are going to roll Wall Street and in your means, pay your debts, and in- to motivate that agency to do the right we can do it. vest in the future, whether it is for thing and give you a clean budget. That is the financial vulnerability your retirement, kid’s college edu- Another point of the Blue Dog 12- that puts this country in grave jeop- cation or something. Leave the place point plan is going to be acquiring a ardy. If we lose control of our own eco- better than when you found it. balanced budget amendment for the nomic self-interests, we have lost part This is the first time I can remember Constitution. Now this will be appro- of our freedom; and this mortgaging of when people who are in power of this priately written with exceptions for our country to anybody on Earth that government are knowingly, willfully, times of war and natural disaster. But will let us have money on the cheap, 90 and deliberately leaving this country I think that is something we need. As percent of last year’s deficit was fi- worse off than they found it finan- I said earlier, we need a structure. We nanced from offshore. When we allow cially. need something to force Congress and that to happen, we are playing Russian Mr. BOYD. Mr. Speaker, I think you the White House to move toward a bal- roulette, so to speak, because anytime said it very well. We do have a tend- anced budget, and that balanced budget they want to, when they get a critical ency here to be very selfish, this gen- amendment in our Constitution is a mass, they can really put the squeeze eration, unlike the Greatest Genera- key component of making that happen. on us, and there is not a thing on Earth tion, which came out of World War II Another part of the 12-point plan is we can do about it. and paved the way for us to be a great something called pay-as-you-go. Now, Mr. BOYD. Mr. Speaker, you can country. we throw these terms out a lot. People foresee a situation that would put us in But the Blue Dogs have a plan. We may not know what that means, but it a dependent situation with agriculture have a plan that talks about some very is a pretty basic concept. That means if and funding like we are with oil. For basic principles that would put this you have got something new, a new instance, I think 60 percent or so of our country back on sound footing in terms program you want to spend money on, oil consumption in this country comes of its budgeting for its government and guess what, you have to pay for it. You from another part of the world. Many funding its priorities, and would the can do it by taking money away from of those people, like you said earlier, gentleman from Utah (Mr. MATHESON) a another program or raising revenues. do not necessarily have our best inter- care to share those points with us? Same thing if you reduce revenues ests at heart. So we have it within our Mr. MATHESON. Mr. Speaker, I someplace, you have got to pay for it own ability to stay out of that situa- would be happy to do that, and I think by cutting spending or raising revenues tion with the economics, and we really I would put it in the following context. someplace else. It is something that need to get this turned around and stop This is not easy to balance this budget. every family deals with in their house- this deficit spending to the tune of 400 It is going to require a lot of really hold budget, what every business deals or $500 billion a year. If we do not, then tough choices, tough political choices. with. It is a responsible way to look at we can foresee a situation down the What the Blue Dogs have decided is things. road where it could be an economic we need to put in a structure for this This isn’t a new idea. This is some- wreck here. institution and for the White House, thing that the Congress was working Mr. TANNER. The other thing that for the President and Congress to work with before. In fact, these rules were in the supporters of this economic plan within a structure that is going to place from 1990 until 2002. Then they for our country say, well, do not worry guide us on the path of fiscal responsi- expired, and while the Blue Dogs have about it; as a percentage of the gross bility because without that structure advocated putting the pay-as-you-go domestic product, it is not historically it is just too easy to deficit spend. rules back in place, we can’t get a vote too high. Well, when it was higher was out here on the floor of the House to do World War II, and we did deficit spend b 2100 that. and we borrowed a lot of money; but That is what has been going on Because as I said earlier, in the short you know who bought the debt then? around here. It will take some tough term, it is a lot easier to govern if you Americans, the war bonds, the savings choices. We do not deny that at all. We do not have to make the tough deci- bonds. They are not buying it today. are ready to work with people, but it sions and you would rather deficit They do not have the money to buy it will have to be all of us working to- spend. But if we put those rules back in because the middle class you talked gether to take on those tough choices. place, it is going to force people to about earlier is shrinking, not growing. So what the Blue Dogs have done is make the tough decisions. It is shrinking. So we are not even fi- they have tried to establish a 12-point As an aside, I might add, Alan Green- nancing our own debt. proposal to set up a structure that ad- span who just retired after 18 years as

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Well, rounding the surpluses, it is not dif- policy of January 4, 2005, the gentle- 2004, 2005, the U.S. Treasury received ficult to imagine the hard-earned fiscal woman from Tennessee (Mrs. $274 billion more than they had esti- restraint developed in recent years rap- BLACKBURN) is recognized for 60 min- mated in revenues. idly dissipating. We need to resist utes as the designee of the majority Mr. Speaker, there is a reason for those policies that would readily resur- leader. that, and it is because tax reductions rect the deficits of the past and the fis- Mrs. BLACKBURN. Mr. Speaker, I work. We know that they work. You cal imbalances that followed in their appreciate the opportunity to come be- lower those rates, and the economy, wake.’’ fore this body this evening and to talk this great, wonderful engine of the U.S. He sure was right, because by Novem- for a few minutes about some things economy, works. It works. We cer- ber of 2005 he came back before Con- that are very important to us here in tainly have seen that happen. The re- gress, and in testimony he said, ‘‘Our the House. ductions that were passed in 2003 have budget position is unlikely to improve You know, we stand here many certainly paid off. substantially further until we restore times, many evenings, and we debate There is another point I would like to constraints similar to the Budget En- the role of government here in this address that did come up. A couple of forcement Act of 1990, which were al- body. We certainly have heard it here the colleagues said, we need to have lowed to lapse in 2002.’’ That was the tonight, as our colleagues across the some honesty as we look at this budget pay-as-you-go provision that existed aisle have talked about their desire to process. I am not going to disagree before. see things done differently as we look with that. I certainly think as we get So we have proof. We have a track at our budget process. ready for Presidents’ Day and thinking record that shows that these rules Certainly there are those of us like about President Lincoln and the mon- worked. Without these rules, we have me who think that government is over- iker Honest Abe that he carried with seen us spin into tremendous fiscal im- grown. While there are others in this him, we certainly need to remember balance. It is another one of the Blue body that think that government can- that and have honesty. But part of that honesty is looking at this and remind- Dog points. There are 12 points. I not do enough, there are those of us ing the American people one of the rea- thankfully may not go through all 12 of who want to prioritize and reduce the sons we are faced with the budget we the points tonight, but I wanted to budget, and there are those who do not have is because of this huge, enormous highlight some of the ones that we want to prioritize or reduce the budget. bureaucracy, huge bureaucracy that have talked about tonight, and ones They feel like something to do is to grew out of 40 years of Democrat con- that I think anyone in this country, re- keep the status quo and raise taxes and trol of this body, a bureaucracy that gardless of political party understands, approach our responsibilities in that basically is a monument to them. and they know it is the right thing to way. A couple of points I did want to It is so difficult and people have such do. a tough time working through the bu- touch on, as they have talked about I encourage, again, any colleague in reaucracy, whether it is paying your the budget and talked about the deficit the House of Representatives should income tax, figuring out that process, and talked about the concerns that we know the Blue Dogs want to engage figuring out that Tax Code; whether it have for that, is we look at the overall them on this issue. is the local university, trying to get economic security of this great Nation. If these 12 points that we have come over here and get the bureaucracy to One of the things that we did when up with aren’t the perfect solution, and help them with some program that is we passed the Deficit Reduction Act, somebody has a better idea, we wel- needed for that university; whether it which was a plan brought forward by come the chance to have a dialogue is our local community and county the majority in this House that would with them. Because these are not easy governments trying to figure out how reduce what the Federal government issues, and we have got to work to- to work with different agencies and spends and yield a savings for the gether to work this one out. But I comply with different regulations. think the 12-point plan represents a American people, what happened with It is a cumbersome, overgrown, thoughtful process and a good start for that Deficit Reduction Act was, yes, we bloated bureaucracy; and certainly as setting up a structure that will force did achieve a reduction in what the we address the issues of oversight this institution to put us back on the Federal Government spends. This is the through the ratings tools, through the path to fiscal responsibility, and so we first time in about 20 years that this President’s management initiative, can avoid increasing, and I will close has happened. We had a reduction in through the CFO act, those are all ac- with coming back to the comments I our discretionary spending. countability measures that have come started with. Mr. Speaker, I think it is noteworthy into play since Republican control of That is not increasing the problem of that we received not one Democrat this body took place in 1994. that birth tax, that we called it, that vote for that bill for reducing spending. So there is plenty that we can dis- was employed on the son I had just 31⁄2 While it is easy to say, and certainly cuss and we will look forward to dis- weeks ago, that my wife had actually, makes for great discussion and con- cussing over the next month as we look my new son, came into this world versation, that the deficit is too big, at the budget, look at the process, look owing $27,000. That is not right, it is and that we are spending too much, the at the need to put those parameters in not fair, and we have got to do some- proof is in the pudding. place that will help us get the budget thing to make sure we do not grow that The proof is, when it comes time to under control and still address the anymore. vote, are you going to vote to raise areas of responsibility that we have. Mr. TANNER. Now you have got a taxes and spend more and keep the sta- One of those areas of responsibility part of another $36 million that we tus quo, or are you going to vote to that I think we all can agree on and have borrowed since we started talk- make some reductions, to get in there certainly should be agreeing on is that ing, and 90 percent of that is coming to and prioritize that budget and decide of national security. There is truly a us from overseas. what is going to be the best way to al- reason that our founders included the Mr. MATHESON. I appreciate my locate the resources of the Federal words ‘‘provide for the common de- Blue Dog colleagues joining me to- Government, because we have to bear fense’’ in the preamble to the Constitu- night. This is an issue we feel strongly in mind it is not our money, it is not tion. They knew that national security about, and we are sincere when we ask this government’s money. It is the tax- was an imperative in order for this Na- our colleagues on both sides of the payers’ money. tion to be able to survive. They knew

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One of them pleaded with a a double fence for 700 miles along the that yields back and gives back to that border patrol agent to find his border near highly populated urban community, that security was an im- girlfriend, Maria, who was still stuck areas. For example, San Diego saw a perative. It is an imperative. out on one of the cliffs. steep reduction in crossings from Tonight, several of my colleagues Illegal aliens like the ones I saw in 500,000 down to 130,000 when their dou- and I are going to take a few moments handcuffs continue to enter the United ble fence was completed. and talk about guarding this Nation States from Mexico at the rate of 8,000 Third, where mountains and rugged and talk about the issue of national se- per day. Today, we have 11 million ille- terrain make completion of a double curity, because we as a party, we as a gal aliens in the United States. Illegal fence impossible, we need to have a vir- majority, are focused, first and fore- immigration presents a huge problem. tual fence. That is, Congress needs to most, on that issue. Mr. Speaker, I can- That is why I decided to spend a week appropriate money for infrared cam- not think of a single better time to do along the southern border to see first- eras that allow agents to see the entire this than on Valentine’s Day, because hand how bad the problem is and, more border in day and nighttime. there is nothing more important or importantly, what Congress can do to Finally, we need more Border Patrol caring that we can do for our children, fix it. agents. Although Congress has already our grandchildren, our neighbors and Last year, our Border Patrol agents tripled the number of Border Patrol those we love than to fight to be cer- arrested 1.2 million illegal aliens at- agents since the late 1980s, more are tain that every child has the oppor- tempting to enter the United States still needed. tunity to grow up in a safe, a free and from Mexico. Significantly, 155,000 of Mr. Speaker, one million immigrants a secure world. It is one of those those arrested were from countries come to America legally each year; and foundational building blocks. And we other than Mexico. They included ille- my staff members spend the majority Americans are free today because of gal immigrants from Iran, Iraq, and Af- of their time helping those who want the sacrifices that our parents and our ghanistan. This poses a very serious to come to our country to work hard grandparents chose to make for them, national security problem according to and play by the rules. for us, and on our behalf. Until this CIA director Porter Goss. I spoke with We are protected from dangerous peo- world is a far different place, it is very Border Patrol agents who had appre- ple entering the country at our air- clear that we must continue our sup- hended suspects on the terrorist ports. IDs are checked against the ter- port for a strong military and defense watchlist. rorist watchlist, and baggage is presence. That is the only way that we One night, while I was riding along screened. Who is doing checks on the are going to be able to be certain that with the Border Patrol, two illegals 8,000 people who arrive here illegally our kids inherit the America that we from Pakistan were captured. One con- each day? Who is our last line of de- know today. victed sexual predator was caught try- fense? It is a Border Patrol agent in a Mr. Speaker, we are going to look at ing to cross. So were wanted murder green uniform working alone. some issues, as I said, of national secu- suspects, drug dealers and smugglers. At 2:00 a.m. tonight, after all of us rity. We are going to look at the border If the job of a Border Patrol agent are asleep, he will be once again work- security issue; we are going to look at sounds dangerous, imagine the risk to ing somewhere near the top of a cold the war on terror and how important it people who actually live along the bor- 5,000-foot mountain along the Cali- is for us to win in this war on terror der. I sat down in the living rooms of fornia-Mexican border. He will get a and how important it is for us to real- four different families who own ranches radio call telling him to approach a ize that it is going to be a long war, along the border. One couple, Ed and group of illegals who have been spotted that it is about freedom, and it exists Donna Tisdale, documented on home by an infrared scope and are located not only in faraway lands like Iraq and video 13,000 illegal aliens crossing their near the top of that mountain. He will Afghanistan but it is something that property in 1 year alone. The Tisdales track their footprints in the dirt and we have to address on our border, our had their barbed wire fences cut by make his way toward them. As he ap- Nation’s border, as we look at the issue illegals running off the family’s cattle. proaches, there is something he does of border security. When their dogs barked to scare off in- not know. Are these illegal aliens a The first Member who is joining me truders, the dogs were poisoned. group of harmless teenagers who are tonight, Mr. KELLER from Florida, has Another rancher told me about nu- scared and freezing, or are they heavily just returned from spending several merous break-ins at his home while his armed, dangerous drug traffickers like days down on our southern border family slept as illegal aliens searched the ones who have killed so many of working with some of the border for food and clothing. One morning his his colleagues? Either way, he will ap- guards and the security agents that are daughters had gone out to feed their proach them because it is just another there. Mr. KELLER is going to talk with pet bunnies, only to find them skinned day on the job. us about some of the activity that is and taken for food by illegal aliens try- Mr. Speaker, I have a message for taking place on our Nation’s southern ing to escape to a nearby highway. that Border Patrol agent. The United border. The economic impact of these illegal States Congress knows you are there. crossers who are successful is cata- We appreciate your service, and help is b 2115 strophic. Illegal immigration costs tax- on the way. Mr. KELLER. Mr. Speaker, if you payers $45 billion a year in health care, Mrs. BLACKBURN. I thank the gen- would have told me when I was in col- education and incarceration expenses. tleman from Florida; and I thank him lege that one day my idea of a roman- The cost of the estimated 630,000 illegal for reminding us of the importance of tic Valentine’s Day evening would be aliens in my home State of Florida is protecting that border so that we do standing around giving a speech on about $2 billion a year, meaning every provide for the common defense, we do border security, I would have probably family in my congressional district have a secure Nation, and we are alert drank a cup of hemlock back then. But pays a hidden tax of $315 each year and and watching. As he has mentioned so here we are, and I am happy to drink yet still faces artificially depressed well, his State of Florida, the area that this cup of water beside me. wages because of illegal immigration. he represents, their estimated cost of Mr. Speaker, I have just returned So how do we fix the problem? Well, dealing with illegal entry into this from the Mexican border, and I am here first, we need to crack down on em- country is $2 billion a year, and that is to report my findings. ployers who knowingly hire illegal for those that choose to enter this We were 5,000 feet up in the moun- workers. Jobs are the magnet attract- country illegally. tains along the border California ing illegal aliens across the border, and The gentleman mentioned some of shares with Mexico at 2:00 A.M., freez- the U.S. House has acted to make it the things that we have done, employer

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00028 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — HOUSE H255 verification, looking at continuing to southern border, especially the south- posed to be used. The Judiciary Com- secure the border, whether you are ern border of Texas, bringing in that mittee has led on that issue, and Chair- looking at a wall or whether you are cancer to sell. They make a lot of man SENSENBRENNER has done a tre- looking at technology, but putting money doing that. mendous amount of work on strength- that surveillance into place. We know that people come here ille- ening our border, taking steps to Now, Mr. Speaker, I am going to gally, over 5,000 a day across the Texas strengthen that. yield to the gentleman from Texas (Mr. border, illegally coming into the Certainly our party as a whole is fo- POE), who is on the International Rela- United States for various purposes. cused on the national security issue as tions Committee and the Terrorism And we suspect that probably the next one of the central issues that we must Subcommittee. Judge POE likes to re- terrorist attack that occurs in the address. That is one of the reasons that mind us that it is just the way it is United States is not going to be be- we as a party fought to get the PA- time and again as he comes to this cause somebody flies into Reagan Na- TRIOT Act passed. We know that on floor and reminds us of the importance tional down the street here, gets off 9/11 our security net had significant of viewing immigration and appro- the airplane, looks around and decides, holes in it and it had to be fixed and priate and proper immigration, abiding I wonder what damage I can do to the addressed, and we now hope that our by those laws and what an important American population. That is probably colleagues across the aisle will join us component that is to this Nation’s se- not going to happen. in supporting the reauthorization of curity and how important it is that we That next terrorist is going to come the bill. It has been successful, and abide by those immigration laws as we across the open porous border, South there are things we need to do to con- are right now battling in this war on Texas and Mexico, because those bor- tinue that focus on this issue. terror. ders are open. And every country in the A gentleman who is spending a good With that, I yield to the gentleman world knows that we have an open bor- deal of time working on our homeland from Texas. der, and that is why so many people are security issues and looking at the glob- Mr. POE. I thank the gentlewoman coming in. al war on terror and America’s re- for yielding. Give you one example: 2005, in Mav- sponse there is the gentleman from We have spent much time in these erick County, Texas, they had about Texas (Mr. CARTER), or Judge CARTER halls discussing many purposes of gov- 8,000 people illegally come in from as we do like to refer to him. He is on ernment. Tonight we have heard much Mexico that were captured. They had the Homeland Security subcommittee, about the budget, how to spend tax- over 20,000 people illegally come in on the Appropriations Committee, and payer money, how the money should be from Mexico from other countries he is going to speak with us for just a spent, how it should not be spent, dis- other than Mexico, almost four times few moments about what is being done cussed projects big and small. as many coming into the United States to address some of our homeland secu- And many Americans consistently from other countries other than Mex- rity issues. ask themselves the question, what is ico. They were from Korea. They were Mr. CARTER. I thank the gentle- the purpose of government? Why do we from China. They were from Brazil. woman from Tennessee and all those have government at all? That is cer- They were from countries all over the who gather here today to talk about tainly a valid question to be asked, es- world coming here. Every country our national security. pecially of our Federal Government. knows we do not protect our borders to One of the things that has been both- And you said it well when you men- keep people illegally, that wish to ering me here recently, there was a tioned the preamble of our U.S. Con- come here illegally from coming into movie that just came out called War of stitution, that one purpose of govern- the country. the Worlds, and in that movie they ment is to provide for the common de- So the duty of government is to pro- were flipping cars around and the space fense. It is the first duty of government tect us, protect the sovereignty and invaders were coming around, and you to protect us, to protect its citizens. the dignity of this country. Everybody saw the fear and panic on the faces of Building roads and bridges, having wants to live in the United States. I do the people on the streets as this made commissions, maybe that is important. not blame them. I mean, this is the up story of the invasion of our country Well, maybe it is not. But the first greatest place on earth to live. But ev- from outer space. duty of government is to protect the erybody cannot live here, so we have And I could not help but be struck by people that live within our borders, the got to have some rules, and those rules the fact that we saw exactly that same U.S. citizens. Government does a pret- have to be followed, and it is the duty live and in color fear on 9/11 when those ty good job of that, especially locally, of our government to enforce the rule people were watching those buildings from our local police to our Federal of- of law and make sure that people re- burn, and all of a sudden the first one ficers, capturing outlaws, sending them spect the dignity of this country. So we came crashing down. And we saw films to jail where they need to be. And we have a lot of concerns about that. on television of that absolute panic of do a pretty good job on the inter- And maybe we should refocus the American citizens as they ran in abject national basis. We are fighting the war purpose of government. Maybe we fear from the falling of those buildings, on terror in Iraq and Afghanistan and should ask the question profoundly, the attack on our Nation. other parts of the world. Our military what is the duty of government? And is the best military that has ever ex- then we should expect the answer to b 2130 isted. And so the government does a be, to protect us, to protect our bor- We saw films of people leaping from fairly good job of that duty of pro- ders, to protect our national security, windows. tecting us. because that is the duty of govern- This is what our national security is I spent all my life basically in the ment. And that is just the way it is. all about. As Judge POE said, it is criminal justice system. I started out Mrs. BLACKBURN. The gentleman about protecting the American citizen. as a prosecutor in Houston, and then I from Texas is correct. That is the way While this is the subject of such con- spent over 20 years on the bench trying it is. That is the duty of government. versation all over our Nation today, let criminal cases, just as Judge CARTER, And as the gentleman stated so well us do not forget we have got to protect who is here tonight. He has tried his and so eloquently, the business of gov- ourselves. share of outlaws. ernment is protecting this country, as Now, I, like Judge POE, have been And the rule of law is something that well as that being a duty. dealing with law enforcement most of we all believe in in this country, that And one of the things, Mr. Speaker, my adult life. I have tried a substantial the law is the standard of conduct. And that we have altered is the way that we number of felony criminal cases. One of the law in this country is you do not do business here in America by tight- the things that we always would do come into the United States of Amer- ening some of our immigration rules. that we worked into law enforcement ica illegally, regardless of your pur- Looking at drivers’ licenses, tightening is we wanted to have interagency co- pose. And we know people are doing our drivers’ license requirements to operation. We wanted to be able to let that anyway. We know, of course, that prevent those documents from being the DEA and in Texas the Texas High- those narcoterrorists come across the used in ways that they are not sup- way Patrol work together on a drug

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00029 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE H256 CONGRESSIONAL RECORD — HOUSE February 14, 2006 case, work in cooperation, share infor- why the American public would feel This is the goal of the PATRIOT Act. mation. But as we approached a view of like they were intruded upon at all. That is what it was established for. It how we were going to secure this Na- Law-abiding American citizens are not is a good tool. It is a tool that is effec- tion, we discovered that we had a lot of intruded upon at all by this. tively helping us. One of the major rea- agencies in this Federal Government Some people are just shocked that sons that all those who deal with these and in the State governments that the PATRIOT Act actually looks into issues talk about them right now, really were not coordinating, working business records. How do you think you today, is because we have been able to together. Tools that we have used for finance people to come over here, train protect this Nation since 9/11. Nobody years in criminal justice were not to fly a 747 or a 727, and crash into a is sitting here telling you that every- being used for securing our Nation. So building without some money? If that thing is perfect; but if you throw away some brave folks got together here in money is being done for terrorist ac- your tools and you put up the things the Congress, and they wrote the PA- tivities, why would you not want the that help you solve the problems, in TRIOT Act. investigating agencies to have the abil- my opinion, for political reasons, it This PATRIOT Act, because of par- ity to go into business records and find concerns me greatly that the real pur- tisan politics, in my opinion, and the out about these things? It certainly pose of homeland security is lost, and fact that this is a world where every- makes common sense to me, and it is that is protecting our families and our body likes to criticize everybody else, something we have used. In fact, many way of life. we forgot about those people panicking of you may recognize now in your life The USA PATRIOT Act should be re- in the streets of New York now, and we there was a time you could come into newed. We should continue this tool for are starting to tear up a document that this country and deposit money or you the American agencies that deal with makes sense. And I think it makes could go down to the bank and deposit terrorism and law breakers and making sense to the American people. I think any amount of money you wanted to in sure that when our kids go to bed at it makes sense to say I would sure like the bank. But there were people com- night, they feel a little bit safer. to know that every agency that is in- ing from other sources with huge sums Mrs. BLACKBURN. Mr. Speaker, I volved with somebody who might want of money that they were laundering thank the gentleman from Texas for through our banking system for the his comments. He is so correct in talk- to attack me or my family in this drug business. ing about the importance of the PA- country talks to each other, shares in- So what did we do? You have to re- TRIOT Act and being able to protect formation, does not have bureaucratic port every $10,000 deposit and every our families. boundaries set up which prevent them $10,000 withdrawal. Nobody got all And I appreciate so much that he and from doing this. upset about that in the United States. the other speakers tonight have talked The FBI should share information That is dealing with people’s business about the implications of what happens with the CIA. The CIA should share in- records. But it helped us find out where here on our homeland and the impor- formation with the DEA. And all other the drug dealers were, and it helped to tance of keeping that homeland safe, codes for the various groups that are keep their dirty money out of our le- keeping that homeland secure, and up here, they should get together and gitimate system. Now we want to know have talked about the great work that share that information. The PATRIOT where the terrorists’ money is, and I is done by our first responders, by our Act set up those procedures to do that. think it is appropriate that we look at local law enforcement members, that Does anybody have a problem with those records. community that works so diligently; that? I cannot imagine an American Now, does it make sense to you that the work that is done by our border citizen having a problem with that. you have to hunt for somebody to issue guards and those who are patrolling Do you not want your FBI agents and a warrant when there is a criminal pro- our borders. Because, yes, indeed, na- your prosecutors, the people who work cedure, a criminal procedure that is tional security means that we secure on this stuff, to talk? Do you not want going on all over the entire United this great Nation. Because this is a war them to be able to communicate, share States, that you have to go to just one on terrorism; it is going to be a long what they have got? particular jurisdiction to get it when it difficult war. And it is the reason, Mr. Now, if I think somebody is planning affects all jurisdictions? No, it does not Speaker, that we have taken military on blowing up a building, just like I am make sense. You should be able to seek action in Afghanistan and in Iraq, and really concerned about somebody who a warrant anywhere there is jurisdic- it is the reason that we are working to might be worried about smuggling tion. The PATRIOT Act allows that to reshape that region of this world. And drugs into this country and I want to happen on terrorist activities. we are making progress. And I know it have a surveillance on that facility This is a good law enforcement tool. is frustrating sometimes when we feel where I think this illegal activity or The warrant still has the same checks like we are taking two steps forward this terrorist activity is taking place, I and balances and protections and prob- and one step back. But, indeed, there is do not see anything wrong with being able causes that are there for anybody. a mighty work that is being done, a able to have procedures set up, which But why do you have to hunt down a very good, consistent and productive we have used in fighting the war on judge in Arizona when you can find one work that is being done by the mem- drugs for years where you go in and in California when it all affects the bers of this great Nation’s military. take a look and then you back off until same territory? And tonight we are joined by the gen- the perpetrators get there and then The PATRIOT Act increased pen- tlewoman from Virginia (Mrs. DRAKE). you go in and make your raid. alties on these terrorist crimes. Now, I The thing that is so wonderful about But you can put a title on that, a personally am a penalty guy. I believe Mrs. DRAKE’s district is the presence of sneak and peak warrant, and it sounds in penalties. I have sentenced a person the military that is there, whether it is horrible. It sounds terrible. It sounds to 20 years in prison for one rock of our men and women of the naval forces like the government is sneaking crack cocaine because I believe punish- that are out there working or those in around peaking on private citizens. No. ment works. That is my personal phi- the Air Force who are flying. Why should you let them know when losophy, and some Americans might So from land to air to sea, you have you are not there that you have been not agree with it. Our county happens it all covered, and we appreciate your there? Go get them when they are to have the lowest crime rate in the constituents. And, Mrs. DRAKE, I join there. We are here to stop these people. United States, but that is my argu- you in wishing the families of all of Why should we have to conduct inves- ment. But the point is the terrorist those men and women who are de- tigations and tip off the people we are penalties have been enhanced by the ployed a wonderful Valentine’s Day. investigating? Does that make sense? PATRIOT Act. That is good. That helps And I join you in standing here tonight So we have proper legal proceedings us use another tool to keep people who to say ‘‘thank you’’ that they are that have gone on in this country for a want to harm our wives, our children, working to be certain that these chil- decade or so in fighting the war on our husbands, our communities, give dren grow up in a safe, free, and secure drugs and the war on crime. We are them extra punishment for what they America. using this in the war on terror. That is do. Those who harbor those who would Mr. Speaker, I yield to the gentle- part of the PATRIOT Act. I do not see harm us we also have tools to go after. woman from Virginia.

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00030 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — HOUSE H257 Mrs. DRAKE. Mr. Speaker, I would our members on the committee for the ing place over in Afghanistan and in like to thank the gentlewoman from QDR, that is, the Quadrennial Defense Iraq. Tennessee for yielding to me. Review. This is a review that is done One of the things, Mr. Speaker, that I am very proud to join her tonight every 4 years by the Department of De- we are learning more and more about on Valentine’s Day to wish all our men fense to assess our national security every day is the fact that, as the mili- and women of the service a happy Val- posture. tary raises up over there, at the same entine’s Day, but especially those and time we are raising up and working to b 2145 their families who are separated today raise up the economic underpinning of and not celebrating Valentine’s Day to- Very importantly, this is the very that nation, the governmental under- gether because they have put duty and first review that has been done post- pinning of that nation, the educational the defense of our Nation first. 9/11. This review is designed to ensure underpinning of that nation, and work- We live, as we know, in a completely that the Department of Defense has a ing to be certain that they are indeed different time; and we face a totally plan to transform itself to meet the ready to take the reins and ready to different threat. Our enemies do not threats we face in the 21st century. succeed as they step toward democ- wear a uniform. They do not represent The QDR seeks to achieve the fol- racy. a nation. They do not own tanks and lowing objectives: Defeating the ter- Mr. Speaker, I would like to yield to aircraft. What they are is a global ter- rorist network; defending the home- the gentlewoman from North Carolina, rorist network that represents a vio- land; shaping the choices of countries Ms. FOXX. She does such a wonderful lent extremist philosophy, one that who are at a strategic crossroad; and job as she works with her constituents places no value on life. What they seek preventing hostile states and non-state and works with us. Education is her to destroy is our way of life, the very actors from acquiring or using weapons forte, and I love listening to her stories fabric of our civilization. of mass destruction. about how she educates and works with We realize that they have established Our goal is to develop a military that her grandchildren and how special and goals. Their short-term goal is to take is more effective, more able to strike how important they are and the lessons Iraq. Their mid-term goal is to take quickly. In the coming weeks, mem- that she teaches them and how privi- the Middle East. And their long-term bers of the House Armed Services Com- leged they are to grow up in a safe, free goal is to take the world. They seek mittee will be reviewing and assessing land and their responsibility to be good and they have vowed to use nuclear, bi- how to reshape our military to meet stewards of that citizenship and that ological, and chemical warfare. these present and emerging threats. opportunity that is presented toward Our brave fighting men and women Our military and the people of Iraq them. understand this threat. They have vol- have accomplished great successes. In I yield to the gentlewoman from unteered to defend this Nation. Re- less than 3 years, they toppled Saddam, North Carolina for some comments on cently, I met a member of our military, they created their government, and addressing the global war on terror. a young man. He looked at me and he they passed their own constitution. I Ms. FOXX. Thank you, Congress- made a very simple statement. He said, think that is quite a feat. It took us 13 woman BLACKBURN, for your leadership Think about this war on terror as if it years to develop our Constitution. We and for providing these opportunities were a football game. And the question amended it 27 times. It took us 120 for us to share some of our thoughts. that I want to ask you is would you years to give women the right to vote. Our colleague, Mrs. DRAKE from Vir- rather play the game at home or away? I think we should be very, very proud ginia, does such a wonderful job in rec- Our goal is that we must fight this war, of their successes. ognizing our military and serving on or play this game, as an away game. So far, we have rehabbed over 2,800 the Armed Services Committee. I met another young man on my trip schools; trained over 4,700 teachers; Today, when I was coming into the to Iraq and had a brief conversation electricity, water and sewer are work- Cannon Building, there were two gen- with him. He looked at me and he said, ing in Iraq; as well as setting up inde- tlemen in uniform standing at the door Ma’am, I understand the threat. I know pendent TV stations, radio stations taking some pictures, and I stopped to why I am here, and if I have anything and newspapers. We have captured and thank them for their service. I do that to do with it, we will never have an- killed many of their leaders, not all; we every time I see anyone in our mili- other attack on our soil. With that he are shutting down as much of their tary. I thank them for their willing- asked me not to worry about him but money as we can; and our fighting men ness to serve. They were so pleasant to pray for him, and in a moment he and women have engaged the enemy so and so excited. They had come home was gone. that they do not have the time to wage from Iraq for a few days, and they were We as Americans do not fully under- war here on our soil and hopefully will spending some time here in Wash- stand this threat. Unless we have loved continue to prevent an attack within ington. One of them said that his ones who are serving, our lives have our Nation. mother came from Mt. Airy, which is not changed. We have not been asked I believe the first function of govern- in my district. They gave me their to sacrifice for a war cause nor should ment is to defend our Nation, and I cards, and we are going to maintain e- we change our way of life because ter- think the greatest gift that we give to mail correspondence. rorists would like to do that for us. So our children and our grandchildren is You mentioned my grandchildren. I it is hard to realize that we truly are a freedom. On Valentine’s Day I am very mentioned to them that, without any Nation at war. happy to thank the men and women of prompting whatsoever, about a year- We question why we bother with a our military who give us those gifts. and-a-half or 2 years ago my now 61⁄2- small country that is so far away from Mrs. BLACKBURN. I thank the year-old granddaughter and 9-year-old us when we perceive that they have gentlelady from Virginia. I appreciate grandson, at night when I heard their lived in constant turmoil and they her comments about the QDR and the prayers as they were going to sleep, have constantly fought with other peo- review that the Armed Services Com- began praying for our military people. ple. But America is committed to win- mittee, a committee on which she It really touched my heart and the ning this war. We have watched liberty serves, is conducting. heart of their parents, because we and democracy spring in the Middle I would think for those who are didn’t tell them to do that, they did it East, and we know in our hearts that watching tonight, if they want to fol- completely on their own. I hope that all people yearn for freedom to raise low that process and learn a little bit all of our military folks know, as I told their children, to be able to live with- more, they could go to the House.Gov these two gentlemen today, that there out fear, without torture, and without website and then go to the Armed Serv- are millions of people in this country tyranny. ices Committee and could get a bit praying for them regularly. I would like to share with America more information about that process. I want to tie that into what Presi- that this fall the House Armed Services Mrs. DRAKE. That will be ongoing. dent Bush says all the time. He be- Committee, under the chairmanship of Mrs. BLACKBURN. I thank the lieves, as I believe and I think most Chairman HUNTER, conducted a bipar- gentlelady for her comments and for people in this country believe, that tisan comprehensive review to prepare mentioning the good work that is tak- freedom is a gift of God and that we are

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00031 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE H258 CONGRESSIONAL RECORD — HOUSE February 14, 2006 blessed in this country with the most in our prayers constantly and thank Finally, on November 9, 2005, in freedom of any people and the most them for the sacrifices that they are Amman, Jordan, at a wedding cere- prosperity of any people and that part making to keep this country free. mony in the three hotels there in of our responsibility is to help spread Mrs. BLACKBURN. Mr. Speaker, I Amman, again suicide bombers blew that freedom. thank the gentlelady from North Caro- up, killing 57 people and injuring 115 I also was thinking that February is lina, and thank her for reminding us others in an attempt to create terror not only the month for Valentine’s that this is a global war on terrorism. among those who oppose the violent Is- Day, but it is Abraham Lincoln’s birth- Mr. Speaker, I yield to the gentleman lamic Jihadist movement. day, and pretty soon we are going to be from Texas (Mr. CONAWAY) for some ad- I remind my colleagues and others celebrating George Washington’s birth- ditional thoughts on the global war on that we are in a global war on terror, day, and Ronald Reagan’s birthday was terror. no place in this world is safe, and while in this month. We have so much to Mr. CONAWAY. Mr. Speaker, I thank it is counterintuitive to talk about think about in this month of what the gentlewoman for yielding this playing an away game, it is clearly in those men meant to helping to live up time. I will be brief, as we have one our best interests that we continue to to the ideals of freedom and the values more speaker. fight this war in Iraq and around the of this country and what they risked in Several of our colleagues tonight world so that we don’t fight it in the their lives, particularly Washington have talked about the war in Iraq and streets of America. and Lincoln but also President Reagan, the global war on terror. I just want to Mrs. BLACKBURN. Mr. Speaker, I who risked saying to the world the add a little meat to that bone that says thank the gentleman from Texas for truth, as President Bush has done. when we have a free Iraq, a democratic reminding us this is an elusive enemy. I want to bring us back to talking Iraq that is at peace with its neighbors, It is not an enemy that is located in about the fact that we are at war and is no longer a haven for terrorists, that one place or an enemy that is sta- that it is appalling that many of our the war on terror will go on. tionary. It is an enemy that you will colleagues cannot seem to understand I would like to beef up that argument find spread out all across the globe. that, as Congresswoman DRAKE men- by a brief historical review of some of As he mentioned, several of the at- tioned, and a part of that war is being the things that our enemies have done tacks, whether you are talking about able to gather intelligence so that we outside of Iraq over the last several the Cole or the Saudi bombings or can fight it effectively. We do want to years. Khobar Towers or the World Trade fight that war on their turf, not on our In October 2000, the USS Cole was in Center, both of the bombings there, turf, and we want to keep them from Aden, Yemen, refueling, when a small this is a very vicious enemy, and the attacking us again. rubber boat ran up beside it, set off a global war on terror is a war that is I have been very distressed in the charge that blew a 40 foot by 40 foot being fought around the globe. The ac- last few weeks about the way the rev- gash in the side of the USS Cole, killed tivity is centered in Afghanistan, it is elation about the National Security 17 young sailors and injured 39. With- centered in Iraq, and it is important Agency’s terrorist surveillance pro- out provocation, without warning, that we keep our Nation safe. gram, the hysterics that have been cre- these terrorists struck. Our final speaker this evening is the ated from the other side of the aisle. I In Saudi Arabia, in 2003 and 2004, on gentleman from Georgia, Dr. PRICE, think that it is time that we talk May 12, 2003, suicide bombers killed 34 who has certainly put a tremendous about the myth that has been created people, including 8 Americans, when amount of attention on what it takes about that program. they blew up a housing compound that to keep this Nation safe and having the The allegations about that program, housed westerners. tools. Being a physician, he knows the that it is illegal, are a myth. It is a In May of the following year, 22 peo- tools of the trade are important, and it legal program. The reality is that the ple were killed when terrorists at- is important that our men and women President’s authority to authorize this tacked a Saudi oil company in Khobar, in uniform, our men and women in our program is firmly based in both his taking foreign oil operators hostage intelligence services, our first respond- constitutional authority as com- and leaving 22 dead, including one ers, having the tools they need to fight mander-in-chief and in the authoriza- American. this war and be successful in this war. tion for the use of military force which June 11, the next month, in Riyadh, I yield to the gentleman from Georgia. passed Congress after 9/11. terrorists kidnapped and executed Paul The allegations that the NSA pro- Johnson, an American in Riyadh. Two b 2200 gram is a domestic eavesdropping pro- other Americans and a BBC camera- Mr. PRICE of Georgia. Mr. Speaker, I gram used to spy on innocent Ameri- man were killed by gun attacks. am so pleased to stand with so many of cans are a myth. The reality is that Then in December of 2004, in Jeddah, my colleagues this evening and to talk this program is narrowly focused aimed terrorists killed five consulate employ- about an issue that really is one of the only at international calls and tar- ees at the U.S. consulate there in Saudi central planks of our side of the aisle geted at al Qaeda and related groups. Arabia. and the national campaign that we put There are safeguards in place to pro- In Madrid, March 11, 2004, just before forward before the American people. I tect the civil liberties of Americans. the elections in Madrid, in an attempt thank you so much for your leadership. Allegations that the NSA activities to affect the elections, which as his- I was going to talk at length about violate the fourth amendment are a tory shows us this bombing did affect the National Security Agency and the myth. The reality is this program is it, 13 rucksacks went off at a train sta- issue that has come before us. I look consistent with the Constitution’s pro- tion on four commuter trains almost forward to doing that at some point in tections of civil liberties, including simultaneously at the height of rush the future. But I do just want to share fourth amendment protections. hour, killing 191 civilians and injuring a few comments about what we have There are people who want you to be- over 1,800 people. The Moroccan Is- heard tonight. lieve this program is targeting average lamic Combatant Group has claimed When I was young, I was a member of Americans, but nothing could be fur- responsibility for this tragic killing; an organization, a group, that used to ther from the truth. We need this pro- again, an unexpected, unannounced, sing a song called Freedom Is Not Free, gram to help protect us and this coun- unprovoked attack on civilians. and the words were something like: try and to help protect our men and Then in July of this year, this past freedom is not free, freedom is not free, women who are fighting to keep this year, July 7, I was actually in Kuwait you have got to pay a price, you have country a free country, and we need to on my way to Iraq when a suicide got to sacrifice for your liberty. do everything that we can that is legal, bomber struck again, this time in And I had the privilege of being with and I am convinced that the President trains in London. Three different un- the American Legion Post 140 last is doing what is legal to protect us. derground trains were blown up, killing night, just last night in my district, I think, again, that we want to call some 56 people, injuring 700, again in and met with these men and women. attention to the men and women who an unprovoked, unannounced sneak at- And they went around the room and are fighting for us and remember them tack using suicide bombers. each of them identified themselves and

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00032 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — HOUSE H259 their branch of service and the conflict nounced policy of January 4, 2005, the We have families in the gulf that had and the war in which they served. gentleman from Florida (Mr. MEEK) is visited the Capitol last week, coming And I was so humbled to be in the recognized for half the time until mid- with demands for their government: do company of such heroes. It just brings night. not forget about us; do not leave us to the fore the incredible sacrifices Mr. MEEK of Florida. Mr. Speaker, it out; do not leave us behind. And re- that we as Americans have made over is an honor to be here on the floor of ports are being released, but not only a the past number of years for our lib- the U.S. House of Representatives summary report from the partisan erty, for our freedom. I am so pleased again. House committee that was formed here with the leadership in the House, the As you know, we have our 30-some- about some of the mistakes that the Members who stood up this evening thing Working Group that Leader administration made and where this and talked about the difficulty that PELOSI has formed over 3 years ago. Federal Government failed Americans. And we meet constantly on issues that Americans have comprehending this Another report that Secretary are facing the American people, and we war on terror; and we do, as you well Chertoff is talking about, he was sup- ask the U.S. House of Representatives know, because we do not think like ter- posed to come before the Senate today to address those issues in many cases. rorists. of the Homeland Security Committee, And there is an awful lot, Mr. Speaker, We do not understand that mind. We and they canceled the committee meet- do not understand the mind that would that is going on here in Washington, D.C. ing because of Senate votes, to get murder innocent individuals. We do not down to the bottom of why we still understand the mind that would chop I must say that I am really, really pleased at the innovation workshop we have not prioritized the emergency the heads off of innocent individuals. management response. That is just incomprehensible to us. So had earlier today that allowed Ameri- I also think it is important that we it does not come easily to us to com- cans to be able to get a view of what point out the fact that the partisan prehend the fact that we are in a war. the Democratic side has to offer in the I was so pleased to hear Congressman area of innovation. And we are going to commission here in this House that is charged, Mr. Speaker, with getting to CONAWAY talk about Iraq not being the talk a little bit about that tonight. But we are also going to talk about end of this war. There are so many as- the bottom of what happened and what the ongoing costs of corruption and pects to all of this war. So I am pleased did not happen in the case of the re- cronyism and incompetence in this in- with the leadership in the House, and I sponse and preparedness for Hurricane stitution that has brought about bad am pleased with the leadership of my Katrina fell short of its duty to be able policies for the American people and colleague, the gentlewoman from Ten- to make sure that we had sound, con- affects the very lives of the American nessee, who is willing to stand up and crete recommendations to be able to people that we are trying to serve. discuss these issues. move forward. As we work to try to better ourselves We still ask, Mr. Speaker, here on I also understood that this is not a here in this Congress, we continue to Republican issue, it is not a Democrat this side of the aisle, for an inde- point out the fact that we are not pendent Katrina commission so that issue. It is an American issue; it is an working in a bipartisan way to be able we can really get down to the nuts and American challenge. And so my hope to get the best results for Americans. bolts of what happened in this natural and prayer over the coming year is And we are going to talk about that disaster and the disaster that followed that all of the Members of the House of also, Mr. Speaker. Representatives and all of the members I think it is important to point out that was the Federal Government’s re- of the Senate will embrace the chal- the fact that we want to wish everyone sponse. lenge and the battle truly that we have here, not only in the U.S. House of I think it is also important that we to work together in this war on terror. Representatives but throughout our talk about our fiscal situation, and I yield back to you, and commend you Nation, a happy Valentine’s Day. And some of tonight and tomorrow we will for your wonderful leadership in this Mr. DELAHUNT is here, one of our es- talk about what has happened with the area. teemed colleagues. We are so glad to- reconciliation, budget recommenda- Mrs. BLACKBURN. I thank the gen- night, Mr. DELAHUNT, that you can join tions that passed through this House tleman from Georgia. I too remember the 30-something Working Group on and through the Senate, and where we singing that song: freedom is not free, this Valentine’s night. are falling short there and being you have to sacrifice for your liberty. I I know a nice man like you had to straight with the American people as it think that we all have sung that at call a couple of folks and wish them relates to the Republican majority. camps as we were growing up. And how happy Valentine’s Day, including your Mr. DELAHUNT, I think it is impor- true and how meaningful it is as we family members, and it is a good day. tant to point out the fact that so many talk about the men and women, wheth- Mr. DELAHUNT. It was a long proc- Americans under this administration er they are working here domestically ess all day, Mr. MEEK. But I just about and under this White House have found as first responders, as local law en- accounted for everybody that it was themselves left behind economically forcement, as border security guards, appropriate. And a happy Valentine’s and also socially. protecting this homeland that we have, Day to you and to your family. I had The President talked about his or whether they are fighting in Iraq, an opportunity to meet your family re- health care plan here in this Chamber, Afghanistan, around the globe. Wheth- cently, and they are great folks. They a health savings plan that is already er they are deployed and away from really are. not working, and the way it should their families, we know that they are Mr. MEEK of Florida. Well, without work and could work for Americans be- doing this because they want to be cer- family where would we be? cause it is not the right prescription tain that future generations grow up in Mr. DELAHUNT. That is right. That for coverage for families. a world that is free, is safe, is secure. is what this is all about. And we thank them for loving all of Mr. MEEK of Florida. Do you know To set aside money, to ask Ameri- us enough to make that sacrifice and what is interesting, Mr. DELAHUNT, is cans to set aside money that they do be willing to put their lives on the line. the fact that we have the issues that not have in the first place is an over- And we wish each of them a happy Val- are floating here in Washington, D.C., sight in itself. So many American fam- entine’s Day. We wish their families a and it is just kind of hard to keep up ilies are living from paycheck to pay- happy Valentine’s Day, and we hope with them. There are so many things check. It is not because they were so that they all know that we love them that are going on, and so many things unfortunate to have a job and a family too. that are happening to the American that they could not afford some of the Thank you, Mr. Speaker. people. It is important that we get our high prices they are paying for fuel at f house in order, and this House and the this time and heating costs and other Chamber across the hall, including the energy-related costs, but to say that 30-SOMETHING WORKING GROUP executive branch, of getting back to we will allow you to put money aside The SPEAKER pro tempore (Mr. the business of the people of this coun- for a rainy day for when a family mem- GOHMERT). Under the Speaker’s an- try. ber gets sick, that is not insurance.

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00033 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE H260 CONGRESSIONAL RECORD — HOUSE February 14, 2006 Right now there is legislation here in the reconstruction of Iraq and coming talked about what you read in your this Congress to stop the Veterans’ Af- from trials that are now occurring in hometown paper. I just want to put fairs Committee from going up on in- Federal district court. this picture right here. This is Sec- surance rates against veterans. And I But before we get to that I think it is retary John Snow from the Depart- want to also, if I can point out a few of important to review what went wrong ment of Treasury. I want to put his those articles today just in the local with this administration’s response for picture there so folks know that this is Washington Post, Mr. DELAHUNT, I Hurricane Katrina. And again, I think not the Meek or the Delahunt report. think maybe we can talk about some of we have to, in a sense of fairness, ap- This is a report in a letter from the the things our third-party validators plaud some of our Republican col- Secretary of the Department of Treas- are talking about here in this town. leagues who really said it better than ury to Senator MITCH MCCONNELL, and Mr. DELAHUNT. Mr. MEEK, if I can. you and I can say it, and I am sure it says the administration now projects I think you made a reference to reports they cannot be accused of being par- that the statutory debt limit currently that are now being released, and you tisan since they are Republicans. But I at $8.184 billion will be reached in mid- indicated that it is a partisan report. I thought what was particularly inter- February of this year. At that time, think it is very important to explain esting to me was a quote in my home- unless the debt limit is raised or the that the report from the House com- town paper or one of my hometown pa- Department of Treasury takes the au- mittee that reviewed this, the after- pers, the Boston Globe. It was an obser- thorized authority, extraordinary ac- math and the prelude, if you will, to vation by TOM DAVIS, who is the re- tions will have to be carried out, we Katrina and what went wrong, was for spected chair of the Government Af- will be unable to continue financing all intents and purposes a Republican fairs Committee. the government operations. He made the observation that Presi- effort. It goes on to say, I am writing you to Two Democrats sat with our Repub- dent Bush is in Texas, Chief of Staff Card is in Maine, and the Vice Presi- request that the Congress raise the lican colleagues; and in the aftermath statutory debt limit as soon as possible of their effort, these two Democrats, dent is fly fishing wherever. I mean, who is in charge? And I guess that is or we will not be able to carry out gov- both from Louisiana, have rec- ernment functions. That is basically ommended that it is essential to cre- really the question. We have had a Department of Home- what it is saying. ate, as we did in the aftermath of Sep- land Security for several years with I have blown this letter up here be- tember 11, an independent commission the ultimate Federal responsibility to cause I think it is important. This let- that reviews again the prelude, during, prepare Americans for disasters, ter is signed by the Secretary of the and the aftermath of the natural dis- whether they are triggered by a ter- Treasury. Basically what he is saying aster that devastated this country in rorist attack or whether they come via in this letter is that, unless the debt the form of Hurricane Katrina back on a natural disaster; and the performance limit is raised, the Department of August 29. of this administration can only be de- Treasury will not be able to continue Maybe like the 9/11 Commission, we scribed as a disaster, a debacle, if you to finance government operations. Our can have an 8/29 Commission that all will. government operations, not the gov- Americans can have confidence in—in I thought it was rather ironic that ernment operations of a foreign coun- its integrity. But I think, too, that we today, as I was watching the news, the try, not the government operations of ought to review really the damning Secretary of Homeland Security, Mr. the Republican party, not the govern- findings of the Republican effort that Chertoff, announced he was going to ment operations of the Democratic really, in my judgment, speaks to the hire 1,500 disaster specialists. I guess party, the government operations of incompetence of this administration. my response was, what took so long? these United States of America. You know, we use the word or the What took so long? How long has it Now give me a couple more minutes. term ‘‘culture of corruption’’ fre- been? Since 8/29, since August 29. This came from the Secretary of the quently in explaining what is occurring Mr. MEEK of Florida. Mr. Speaker, I Treasury, the office right next to the here in Washington. But I think you can tell the gentleman what took so White House, Mr. Speaker, appointed might agree with me that it is incom- long. What took so long is that we have by the President of these United States petence combined with cronyism that an administration and we have a Con- and confirmed by the U.S. Senate. This really are the building blocks, if you gress that did not give the proper over- is a letter that he wrote on December will, of that culture of corruption that sight. 29 of 2005, just the end of last year. creates a huge cost to the American The Department of Homeland Secu- Better yet, Mr. Speaker, the Amer- taxpayers. rity asked the questions when they ican people are being asked, trust us I am speaking in terms of billions of should have been asked. The American with the money and the decisions. Let dollars and multiple lost opportunities, people were told, trust us, trust us, us have a treasurer here. dashed dreams, and unfortunately this, trust us. When you talk about the Re- let me use the term ‘‘corruption tax,’’ publican majority and really Homeland Mr. DELAHUNT is familiar with this that even cost lives. And I think we Security, FEMA, the White House, and chart. The President of the United have witnessed this because of what oc- oversight committees were not pre- States, George W. Bush, has borrowed curred by way of a natural disaster on pared to do what it was supposed to do more, and he could not do it by him- August 29 and what has occurred in and we failed the American people. self, he needed the Republican major- Iraq in the aftermath of our invasion. Now, let me just say this. The Amer- ity to do it, $1.05 trillion from foreign And I do not want to delve tonight ican people have been asked to trust countries. Foreign nations like China into the disagreement that I have in the words of this majority time after and Saudi Arabia and all of the coun- terms of the rationale for this adminis- time again. Trust us on the fiscal out- tries that we are concerned about, we tration to invade Iraq. look for the country. Trust us on tak- have borrowed more money in four ing down the deficit. Trust us on mak- years since 2001 to the present, to the b 2215 ing sure what they tell you is actually end of 2005 than 42 Presidents com- I do not want to talk about weapons the reality. Trust us on your health bined, and that is $1.01 trillion. of mass destruction. I do not want to care costs and your coverage. Trust us, Now we had World War II, Mr. Speak- talk about links to al Qaeda. I do not trust us, trust us. er. We have had the Korean War. We even really want to talk about the fail- And almost in the same month the have had World War I. We have had ures to bring democracy to far corners American people, it is revealed to the Vietnam. We had Gulf I. All of these of this world according to the Bush American people that it was not about wars, all of these conflicts, the Great doctrine. But I think it is important them the whole time. It was about spe- Depression, a number of challenges to that we talk about the corruption that cial interests having their opportuni- our country. This President and this is ongoing and reveals itself on a fre- ties and privacy through the executive Republican Congress has borrowed quent basis by reports coming from branches in this Congress. more, I cannot say that enough, has independent sources, coming from, ac- Now if I can just take a minute just borrowed more from foreign nations in tually, the special inspector general for to bring in third-party validators. You the history of our republic. And we can

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00034 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — HOUSE H261 say that from a standpoint as Demo- Koreans, from the OPEC countries, as Mr. RYAN of Ohio. A track record crats to say that we put forth a bal- we borrow that debt we have got to pay here. anced budget recommendation here interest on that debt. Mr. MEEK of Florida. A track record, and it has actually happened. So as we are paying interest on that a pattern of those who have made I just want to make sure, and I know debt, this chart will show us that out youthful indiscretions in their lives, this is one of Mr. RYAN’s charts here, of our priorities that we have in this need it be on credit, need it be some but I am going to go ahead and say this country, the red is what we are paying sort of criminal activity, you can no is our debt right here now as you see it in billions of dollars in the 2007 budget longer have access. You used to have as of February 14, as of February 14 in interest, compared to education, the capital, if you do not have a good which is a special day on the calendar, compared to homeland security, com- credit record. Am I right? and we talked about that a little ear- pared to veterans. Let me just tell you something right lier. This is what the American, this is b 2230 now as it relates to the United States. what each American, if a baby was I am looking at Japan. You can put So when we are talking about bor- born when we started this special order Japan in the State of Florida, and the rowing the money and what we are here tonight, they already owe State of Florida will swallow geo- paying the interest on and what coun- $27,526.77 and counting. graphically Japan. But, better yet, try we are paying the interest to, that So I go back to Secretary Snow’s let- look what they are holding of the U.S. interest money, the red, is going back ter. Did the Democrats write this let- apple pie. The bottom line is this is to China. It is going back to Japan. It ter? No. The Democrats put forth rec- about, Mr. Speaker, the incompetence, is going back to Korea. ommendations of pay as you go. Is the Mr. DELAHUNT. It is going back to cronyism and, in some cases, corrup- Republican majority embracing that OPEC. tion of these individuals being able to doctrine? No. Is the White House em- Mr. RYAN of Ohio. It is going back to get access into this institution and bracing that doctrine? No. OPEC. into the executive branch to be able to So when we start talking about fiscal Mr. DELAHUNT. Along with the dol- get what they want. responsibility and competence and say- lars we are using to buy oil at $60-plus I want to drive the point on here. I ing no to corruption and cronyism that a barrel to heat our homes. want to make sure this is crystal clear. has an effect on the American people, Mr. RYAN of Ohio. Which is also It has to be crystal. The bottom line is this is the result of it. going back to OPEC. So OPEC is bene- the only way that we will be able to You have got a letter. That is what fiting from the high oil prices, high have a paradigm shift not only in the we are about. We are about shed- gasoline prices. They are benefiting thinking but in policy and action on ding light on what is happening under from the net interest we have to pay on behalf of the American people and un- this Capitol dome. If you let the major- the money we are borrowing from them less the American people like you say, ity tell you, oh, well, the Democrats at the expense of education, homeland the majority, they do not have to be have done this, that and the other. security, and veterans. the majority. The American people can This is the biggest borrow-and-spend Let me just show you this, and let me make that change. They can say that Congress in my opinion in the history just say this is a powerful, powerful, we are willing to allow the Democrats of the Congress, borrow and spending powerful group of information here to lead so that we can hopefully start in the worst way with interest. that we need to share, and I have got to taking care of some of these issues that Mr. DELAHUNT. If the gentleman tell you something. I love this slide. I we have to take care of here at home, would yield for just a moment, today I love this. I want to be friends with this with our troops in Iraq and Afghani- was at a hearing and the hearing hap- slide. stan and throughout the world so that pened to be on China. It was a sub- Look what we can do. This says what we can get the respect of not only the committee on which I serve as ranking else could the government do with the world but our country, our own coun- member, and there was a reference interest, the red that we just showed, try. made to the Bush doctrine. what else could the government do Veterans, they signed up for all the Well, I would submit, given that with the interest that the country pays right reasons, allowing us to salute one President Bush has accomplished in every day on the debt that we have. $1 flag, as we see it now, are being asked one term more than all of his prede- million in every congressional district to do more financially, meanwhile $1.5 cessors combined in terms of accumu- per day. That means in the gentleman trillion in tax cuts for the wealthy, lating debt held by foreign nations, from Florida’s congressional district, while we have individuals, while we are some of whom are particularly hostile you get $365 million; the gentleman having veterans affairs centers closing to the United States, that we should from Massachusetts (Mr. DELAHUNT), in rural America and in urban Amer- describe the Bush doctrine as one of $365 million for your congressional dis- ica. They are closing. Some of them are borrow and spend, not pay as you go, trict; $365 million for mine. I can tell only open on Wednesday now. But, but borrow as you cut taxes. And I you, with the health care priorities and meanwhile, we have individuals, we made the observation if you connect education and veterans that live in my have the President every time he gets the dots how are we conferring a mas- district, they would love to have an a chance he is talking about let us sive tax cut, 40 percent of which is re- extra million a year. make the tax cuts permanent for peo- served for 1 percent of Americans. Who With the debt every day, we could ple who are not even asking for it. is paying for that particular tax cut? provide health care for almost 80,000 So this is very simple. This speech on Well, at least a trillion of it is being more veterans if we balance our budg- what the majority, Republicans, say, funded by Japan, China, Britain, the et, if we get our fiscal house in order well, trust us, we know what we are Caribbean, Taiwan. here. We could improve Social Security doing. We showed the letter from Sec- And listen to this, that tax cut is solvency by almost half a billion dol- retary Snow. I think we already know also being paid for by money borrowed lars if we could begin to balance the this. We did not write this letter. The from OPEC, OPEC. That means that we budget. guy has said the fifth time, the Sec- are not just buying our oil from the Mr. DELAHUNT. Are you aware with retary is saying we will not be able to OPEC cartel, but we are also borrowing the President’s budget that 263,000 of operate the government. That is one money for them to support a tax cut our veterans will be denied access to letter. for 1 percent of our affluent citizens. veterans health care? Here is the other one here. Forty-two And then Korea, Germany, Canada and Mr. MEEK of Florida. It goes a little Presidents, this President and Repub- others makeup the difference. This is further. They are going to pay higher lican majority has borrowed $1.05 tril- extraordinary. copayments, too; and what the major- lion, but, better yet, saying let us Mr. RYAN of Ohio. Mr. Speaker, it is ity has to understand, Mr. Speaker and make a bad idea permanent, let us good to join the gentlemen. what the Senate has to understand and drive this number up, let us put a two As we are talking about the debt and what the President has to understand, here instead of a one. It does not make we are borrowing this money from the this is not going to change. This is sense. Only the American people can Chinese, from the Japanese, from the business as usual. stop this crowd. $27,526.77, the average

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00035 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE H262 CONGRESSIONAL RECORD — HOUSE February 14, 2006 American owes right now. This is not providers who are getting all their lions of dollars in Katrina disaster aid, brought to you, Mr. Speaker, by the money. including handing 2,000 debit cards to Democrats. This is brought to you by Your tax dollars, Mr. Speaker, are people who gave phony Social Security the Republican majority and this going for corporate welfare; and we do numbers and used the money for such White House. not have enough to give them so we items as a $450 tattoo. We have to save this country, and the have got to go to the Japanese to bor- Mr. RYAN of Ohio. Can you repeat American people have to save this row them so we can give them to the that? I missed that. country, and we have to get the word wealthiest industries in the United Mr. DELAHUNT. A $450 tattoo. Fed- out to them that all of the rhetoric, all States. This is craziness, and we need eral money also paid for $375 a day of the big money machine. to stop it. beachfront condos and almost 11,000 And, look, here is another one. This Mr. DELAHUNT. And the Chinese trailers that were stuck in the mud and stuff is just here. It is almost too much and OPEC. unusable. to share, Mr. Speaker. We do not have Mr. MEEK of Florida. It is the cost of Mr. RYAN of Ohio. Do you have the enough time to share what the Mem- corruption and cronyism. It is the cost. number on the trailers, how much that bers and the American people, clients Who pays it? cost? Because I heard it today, and I reward keeping K Street lobbyists Mr. RYAN of Ohio. It is the cost of am sorry to interrupt you, but I think thriving. the K Street project, and the average this is a salient point that we need to I never blame the special interests person that pays taxes foots the bill. make. for what happens here, but I am going Mr. MEEK of Florida. Can I just get Mr. DELAHUNT. The GAO auditor, to tell you right now they have a tax a third party validator in it for you? Gregory Kurz, told senators during a shelter right now where $100 billion in Just today, NewYorkTimes.com, the hearing that the amount of waste and U.S. taxpayer dollars are not going Members can go on to it: Huge give- abuse and fraud could be hundreds of into the coffers because they have an aways were in the works for the oil in- millions of dollars. They just do not offshore deal with this administration dustry. Not the veterans, not the work- know yet. and with this majority. Meanwhile, we ing Americans, and it spells it all out b 2245 are sitting around here trying to figure here. Mr. Speaker, I do not have a con- As he indicated, FEMA may also out how our veterans are going to get spiracy theory, but it is right here. It have brought too many temporary health care. Meanwhile, we are trying is clear. homes, including 11,000 units that cur- to figure how small businesses will be I do not know. I am so glad that I am rently sit empty in sinking mud in able to afford health care for everyday not a member of the majority because Hope, Arkansas, while they are needed Americans to be able to buy into; and, I do not even know how I could come to in Louisiana and Mississippi. It is the meanwhile, we have troops still with- the floor and defend this. How can I incompetence of the planning process out body armor and the things they even shape my mouth to say this is that was nonexistent. Today, the Sec- need to be able to fight on behalf of good? But somehow there must be retary of Homeland Security an- this country. So we ask everyday some sort of in front of the mirror in nounces, I am going to address that, I Americans to go out there and suck it the restroom kind of I can do this, be- am going to hire 1,500 disaster special- up. cause this is wrong. The sad part about ists. Good job, Mike, heck of a job. Meanwhile, the majority, the Repub- it is that the country is paying the Mr. RYAN of Ohio. I heard tonight on lican majority, based on incompetence, price; and the folks that are wearing CNN earlier this evening that the cost some may say corruption in some cases the suits, being driven around with of the 11,000 trailers was upwards of as it relates to the White House, I tinted windows in cars and sedans and $300 million. So basically what hap- mean, every day, I am sorry, every day all, do not even know the price of a pened is FEMA is so screwed up, okay, we turn on the television. What is new? carton of milk because they have because there are not many other ways What is going on at the White House? someone else go out and get it. They to put it. They are so screwed up that What is being held back from the are getting paid by the U.S. tax dollar. they bought 11,000 trailers that they American people? What is being held Meanwhile, we are telling veterans, moved to Hope, Arkansas, and put back from the Congress? Who came to schoolchildren, U.S. cities, to suck it them in a field that is full of mud. the Hill today and conflicted a story up. They sunk in the mud so they are not that they told just months ago about Mr. DELAHUNT. Now, of course, we even good anymore. They will probably the fiscal outlook on the country? are presented with a plan that would have to get rid of them. Meanwhile, you have Members that cut Medicare and cut Medicaid. So if Real estate people in Louisiana said come up to this well on the majority you are a senior in this country, and, of that $300 million could build 2,500 side and say we are doing fine, I do not course, we are here representing the homes for middle-class people in Lou- know what these Democrats are talk- generation of 30 somethings, but if you isiana or in the gulf States. It could ing about. happen to be getting close to that open up all of the schools in the gulf But it goes against logic. We have point in your life where you receive a coast. letters from their very own administra- Medicare card, be careful. Do not count So when we come down here and we tion that are saying we have got to on it. are talking about the debt, the deficit, raise the debt limit because of our irre- A while back there was a speaker and the recklessness and the irrespon- sponsible policies. who preceded over this Chamber who sible spending, reckless abandon for Mr. RYAN of Ohio. The fact of the said Medicare, let it wither on the vine. balancing the budget, that is one issue. matter is, as you just so eloquently put Well, I wonder if that particular sub- But another issue is look at the it and passionately put it, this money mission to cut and slash Medicare is waste. My goodness, $300 million to buy that we are borrowing is not going to the beginning of the withering process. trailers that are now sitting in the fund education. It is not going to lower It just is not right. But, as we were mud in Hope, Arkansas, instead of ac- tuition costs. It is not going to fund No saying earlier, a lot of it is just rank tually housing people? Child Left Behind. It is not going to incompetence. But when you combine You mentioned Speaker Gingrich fund the veterans. This money that we this magnitude of incompetence that earlier. He was talking, and I read in are borrowing from the Chinese and we have witnessed surrounding Katrina the paper the other day, he is as crit- Japanese and the Caribbean and OPEC, and surrounding the reconstruction of ical of the Republican establishment in the oil-producing countries, is going to Iraq, it easily evolves into corruption. this House and in the Senate and in the fund corporate welfare to the oil com- There was an audit done or at least a White House as any of us are. panies, $16 billion in corporate sub- preliminary audit done by the General This is not about Democrat and Re- sidies to the energy companies in the Accountability Office which, as Mem- publican. This is about America func- last energy bill, and billion upon bil- bers know is a nonpartisan, inde- tioning as a government in the 21st lion upon billions of dollars that go to pendent agency to review government century with the communication capa- the HMOs and the pharmaceutical com- expenditures; and they discovered that bilities that we have, with the tech- panies and all these other health care the government has squandered mil- nology that we have, with the know-

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00036 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — HOUSE H263 how that we have. To hear afterwards ed, and the articles that we have will million in contracts. They have now that experts were trying to tell folks in be in the news section so that the been charged with fraud and abuse, FEMA, and outside of FEMA, what Members can get it. mismanagement, et cetera. They were would happen if there was a category 3, Because I think it is important, Mr. supposed to provide some security serv- 4 or 5 hurricane that came into the gulf DELAHUNT. It is one thing to do some- ices for the Baghdad airport. The secu- States. We knew. thing and not know. It is another thing rity director at the airport commu- What we are trying to say here is to do something and know. I will tell nicated via e-mail and had this to say: that the Republican majority in the you supermajority and Republican ‘‘Custer Battles, this is the company, House and the Republican majority in leadership know. Okay, maybe some has shown themselves to be unrespon- the Senate, in this administration, Re- Members may be a little bit confused sive, uncooperative, incompetent, de- publicans in the White House, do not about what is actually happening, ceitful, manipulative and war profit- know how to govern. maybe. eers. Other than that, they are swell Now, because the whole philosophy is It is easy, because there are a lot of guys.’’ that all government from top to bot- things that are going on. But while we The number two man at the Coali- tom does not work, it is worthless, it are driving up the debt, and the highest tion Provisional Authority’s Ministry has no value, that is not true. That is that it has ever been, and while that of Transportation, the American-run just not true. We are saying that gov- whole interest piece that you have temporary government running the af- ernment needs to get out where it does there, Mr. RYAN, Mr. DELAHUNT, that is fairs of Iraq immediately after the in- not work, and it needs to be efficient not to build schools, that is not to put vasion, had this to say: ‘‘It was the and effective where it has responsi- the gulf coast victims into homes, that Wild West. There were $100,000 bricks of bility. is not to help our veterans, that is not $100 bills. The money was a mixture of Now, FEMA, for example, who else is even to have world-class health care. Iraqi oil revenues, war booty and U.S. going to coordinate between the gulf That is to make tax cuts permanent for Government funds ear marked for the States and emergency response? Who millionaires. coalition authority.’’ This is a member else is going to protect us with Home- Mr. DELAHUNT. And to pay the in- of the administration. land Security, of which you are a com- terest and our debts off to the Chinese, When asked about Custer Battles’ mittee member, Mr. MEEK? Who else is Japanese, the Koreans and OPEC. performance, the top Inspector General Mr. RYAN of Ohio. Well, can I inter- going to provide for the defense? Who for the Army in Iraq reviewed it to see ject, because I can, this may be going is going to balance the budget? Govern- if the company was living up to its con- to build schools; but it is going to build ment has some responsibilities to in- tract, such as it was. His name is Colo- schools in China, because they are vest. nel Richard Ballard. When asked, he All we are saying is do it in a respon- making money off of us. It is going to said: ‘‘The contract looked to me like build schools in Japan, which of course sible manner. This nonsense is reck- something that you and I would write we want the kids all over the world to less, paying $225 or $230 billion in inter- over a bottle of vodka. Complete with be educated and healthy. We were all est on the money you are borrowing all the spelling and syntax errors and for that. But you know, not because of from the Chinese Government, Japa- annexes, to be filled in later. They pre- the recklessness that the Republican nese Government and the OPEC coun- sented it the next day and they got majority has been exercising here. tries, and then basically raising tuition awarded about a $15 million contract.’’ Mr. DELAHUNT. If I can, just for a They were supposed to provide security and underfunding No Child Left Be- moment, just to digress, because we hind. for commercial aviation at the Bagh- have been talking about Katrina and dad airport, but the airport never re- In Ohio, No Child Left Behind is un- the fraud and the mismanagement as- derfunded by $1.5 billion a year. Cut- opened for commercial traffic. sociated with the Katrina spending, I Now, do you think that they canceled ting veterans benefits? Not funding think it is important to remember, too, Homeland Security? You know, this is or voided the contract? No, they got that about half of the 700 contracts another contract after that. It was for not very visionary on behalf of our that have already been issued were a bomb-sniffing canine team. brothers and sisters on the other side issued on a no-bid basis, and they were Mr. RYAN of Ohio. I just want to of the aisle. issued to corporations that have obvi- make a point, and then kick it to my Mr. MEEK of Florida. Mr. RYAN, in ous political ties. But that is a subject friend, that all of that money that is the same breath, the President is talk- for another night. wasted, KENDRICK, is going to this. ing about we want to embrace innova- But, again, it goes back to just in- Okay? There was $100 million here, $100 tion. We want to prepare the next gen- competence and lack of planning. million there. No oversight. No over- eration to lead. We want to make sure Mr. RYAN of Ohio. Basic stuff, basic sight at all on behalf of this Repub- that we put our fiscal house in order. stuff. lican Congress. Mr. RYAN of Ohio. Well, then, this Mr. DELAHUNT. And lack of due Mr. MEEK of Florida. They don’t number, my friend, the purple lav- diligence. But it also exists, tragically, want oversight. ender, it is a nice lavender, it needs to in a far greater magnitude, with Amer- Mr. RYAN of Ohio. That is the prob- be at the level of the red. The edu- ican tax dollars that are being used to lem. Article I, section 1 of the Con- cation needs to be up here, and the net build schools, roads, hospitals, dams, stitution creates the House of Rep- interest on the debt needs to be down and levees in Iraq. I mean, I have a resentatives, and our job is to oversee here. Then we will start talking about major concern about the fraud and the everything, including the administra- innovation. corruption that is going on in Iraq with tion. So if they are at war, we should Mr. MEEK of Florida. One other the use of American taxpayer dollars. be overseeing this. And if there is a thing that I want to make sure that we I don’t know if either one of you, but bunch of political hacks that are mak- add, Members, so that Members will I am sure many who might be watching ing money off this, then we need to go know exactly, because I believe in this evening, witnessed the CBS news and bust them. We need to be involved. third-party validators. I also believe in ‘‘60 Minutes’’ program that aired this But this Republican Congress will not sharing information. past Sunday. It really was remarkable. oversee what is going on in Iraq, and I know, Mr. RYAN, you will give this They highlighted one firm called Cus- the hundreds of millions of dollars that information out, but I want to make ter Battles. Custer Battles was started Mr. DELAHUNT was just talking about, sure that folks understand and the by an individual with the name Scott you are paying for, you are, I am, with Members understand. Because I know Custer, a former Army Ranger, and interest, because we are borrowing it some Members are in their offices say- Mike Battles, an unsuccessful congres- from the Chinese and the Japanese gov- ing, I need to know this, Republicans sional candidate from Rhode Island, ernments. and Democrats. I want to get a copy of who claimed to be active in the Repub- Mr. DELAHUNT. And OPEC. this, and you can, lican Party and have connections at Mr. RYAN of Ohio. And OPEC. And www.housedemocrats.gov/30something. the White House. OPEC. Did I mention OPEC? You can go on there. All of the charts They arrived in Baghdad without any But this is an issue that, KENDRICK, that we have here tonight will be post- money; yet within a year, they had $100 we need to oversee what is going on

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00037 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE H264 CONGRESSIONAL RECORD — HOUSE February 14, 2006 here and the Republican leadership Members to use proper forms of ad- nomic run in the last 2 decades, and it does not want to provide the proper dress. The gentleman, for example, also is a controlled growth. It is a oversight. It is a waste of taxpayer dol- from Massachusetts is properly re- growth that has not gotten out of lars which goes to the interest on the ferred to as the gentleman from Massa- hand, Mr. Speaker. It is a growth that debt, which we have to borrow from the chusetts or Mr. DELAHUNT. It is not grows from 3 to 4.7 percent quarter Chinese and Japanese, which allows proper under the rules to use first after quarter, with an inflation rate them to fund their economy. names, and remarks should be directed that is 2 percent or less and unemploy- Mr. MEEK of Florida. In my last 2 to the Chair not in the second person. ment rates that are in the 5 percent minutes, I am bouncing back to you to f and less range. That is where we want, give the Web site address out, but I not too hot and not too cold, a nice BALANCED BUDGET PROPOSAL just want to make sure that we have a steady accountable growth. moment of clarity here. Mr. Speaker, The SPEAKER pro tempore. Under And I would point out this that we are not pointing these issues out as the Speaker’s announced policy of Jan- growth that we have in our economy is though we have not tried to stop these uary 4, 2005, the gentleman from Iowa growing in spite of the fact that 3.5 runaway majority borrow-and-spend (Mr. KING) is recognized for the time percent, perhaps, of our GDP is going Republicans here in this House. remaining before midnight. off the top to the litigation that goes Mr. KING of Iowa. Mr. Speaker, as on in this country. We have to over- b 2300 was stated earlier, I do consider it an come that and still grow at a rate of For the RECORD, CONGRESSIONAL honor and a privilege to come to the about 3 to 3.5 percent to match a tar- RECORD, I must add, not the Demo- floor of this House to address you, Mr. geted growth rate that will deal with cratic Congressional Record, but the Speaker, and to carry this message population growth and to deal with in- CONGRESSIONAL RECORD, Democrats across the waves to the American peo- flation and help us develop our infra- have repeatedly tried to reinstate the ple. structure in this country to accommo- pay-as-you-go philosophy. On March 30, I would first take up the issue of a date the future as our infrastructure 2004, Republicans voted 209 to 209 balanced budget, and I would submit depreciates. That is what it is going to against Democrats, which killed the that we can balance this budget, Mr. take to grow. motion that was offered by MIKE Speaker, and we do not need to do so And what it is going to take to bal- THOMPSON of California to instruct by raising taxes. We need to do so by ance the budget, should we have the conferees on recommendations as pay fiscal responsibility. will to do that, would be to go into the as you go. All right, that is the first ex- I raised an issue today, I testified be- nondefense discretionary spending. ample. fore the Budget Committee here in the Recognizing that we have three large The second one, May 25, 2004, Repub- House of Representatives, and I laid entitlements in our budget, and those licans voted 208 to 215. Republicans out a scenario by which we can balance are the spending that just goes on year voted 215 to reject a motion by DENNIS this budget for this year. And I also ac- after year that is growing at a rate of MOORE, another Democrat that voted knowledge that it is quite painful. It is about 6.2 percent a year and that is ag- on the pay-as-you-go principle. not realistic from a political perspec- gregate, and that is Social Security, November 18, 2004, Republicans took tive, but I think it is important that Medicare and Medicaid. Those three another vote to block former Member the Budget Committee produce a bal- entitlements are essentially, unless we Stenholm’s amendment to stop the anced budget so that we can measure change some of the parameters, Mr. debt limit from being increased. Time the pain to so many of the programs Speaker, are the right now the un- after time after time again. You can go that would have to be cut. touchable budget items; and eventually on to our Web site. The Members can But a simple version, and it is a this Congress will have to look at get this information. We have tried to quick version, it is not the thing that them. But those three entitlements stop this Congress. The only way you I would propose as a balanced budget, will grow at about 6.2 percent of their can stop this Republican Congress from Mr. Speaker, but it is one the ways aggregate. The interest rate will grow doing what they are doing is make sure that we can easily understand the mag- perhaps even faster than that in the that we have more Democrats here in nitude of the budget situation we have. outyears. this House. First of all, if you would reinstate You add all those things up, and if Mr. RYAN of Ohio. the Bush tax cuts and calculate those you recognize that to make changes in Www.housedemocrats. gov/ back into the revenue side, it almost that for this year is very difficult to do 30something. All of the posters that we does not show at all on the bottom line and also recognizing that we have de- had up tonight you will be able to ac- as to whether we are running a deficit fense spending that is critical to our cess on the Web site. or a surplus in our spending; and I have national security and we need to take Again, I think that is an important a calculator in my computer that al- that off the table from a cut perspec- point. Democrats have consistently lows me to do that. It almost does not tive and what is left is the nondefense tried to put fiscal restraints on this show on the graph when you calculate discretionary spending. That is the runaway spending that the Republicans that. items of all, everything else that we have been doing over the past few years But if you look what the Bush tax spend that I have not identified as here, trying to balance the budget here cuts have done, they have grown this being an entitlement of Social Secu- so we can get back on the right track economy and they have grown this rity, Medicare, Medicaid defense spend- and get back the surpluses. We have economy at 3 percent or better growth ing, that nondefense discretionary got our hands full. Housedemocrats. each quarter for at least the last 10 spending. We will call that other. gov/30something. consecutive quarters, and that is a To balance the budget Mr. Speaker, Happy Valentine’s Day to all the growth rate that has been met or ex- we would need to simply cut the non- sweethearts out there. ceeded since the early Reagan years. defense discretionary spending by 5 Mr. DELAHUNT. Happy Valentine’s And I would point out, Mr. Speaker, percent, a real 5 percent cut, and that Day, Mr. Speaker. those early Reagan years were the would be $0.95 on the dollar. That Mr. MEEK. We would like to thank years when we had high interest and would be asking Americans to get the Democratic leader, Mr. Speaker; high inflation. So this is a real growth along with $0.95 out of every dollar and, with that, it was an honor ad- in a very low inflation environment that they have right now, today, not dressing the U.S. House of Representa- with a low unemployment environment grow in relation to inflation and not tives. with unemployment rates below 5 per- grow with any kind of a COLA. f cent. Now, if I were looking at this from a It is a very, very good economic business perspective, I would advocate ANNOUNCEMENT BY THE SPEAKER time, Mr. Speaker; and it is as good a that we just simply balance our budget PRO TEMPORE time as one could ask for. It is the best in that fashion, Mr. Speaker. But I am The SPEAKER pro tempore (Mr. economic run that we have had in a also aware that the votes on the floor GOHMERT.) The Chair must remind long, long time. It eclipses any eco- of this Congress will not accommodate

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00038 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — HOUSE H265 for that. So I will be seeking to put to- Excuse me. It was more than that. It through in those days before the libera- gether a budget that looks at some of was a long stretch at least across the tion of Baghdad. So their drinking the other components and gets us to northern part of Iraq with that kind of water in many areas was delivered the point where we can reasonably, a long trail of a convoy to deliver the through a black piece of plastic pipe practically and, in fact, part of the generator and the turbine that drives that was pulled through the sewer equation here is politically balance that generator down to this location itself, and they would pull it through, this budget. It cannot and should not just south of Kirkuk. and then the distribution runs out to be done by simply raising taxes. By b 2310 the locations where it was being used. doing so it would stifle growth, and it And that is all fine as long as you keep would get a reverse effect beyond in And that being one of two huge gen- your waterline in condition, and it does the opposite direction that my col- eration plants that are now in a posi- not ever get a leak in it, and you do leagues who just got finished speaking tion where they are up and running in not ever let the pressure go down. would say. Iraq, this one is fed by a natural gas But both of those things invariably I am just going to go backwards, Mr. pipeline. Some of them are using dif- happen; and when that happens, the Speaker, through some of the remarks ferent types of fuel; but up in this area pressure goes down in your drinking that I heard made over this past hour around Kirkuk, there is so much oil waterline, and the sewage then is and address some of them. I certainly that it actually seeps to the top of the drawn into that drinking waterline, cannot address them all, Mr. Speaker. ground in some places. and it then pollutes the drinking But the argument that all of the Where I come from, the area, we call water. That has happened in a number money that was spent, all, this is a it the prairie pothole region where we of areas in Baghdad. We are recon- quote, all that money is wasted, mean- have these potholes of water that are structing that. We are providing them ing the money that was spent for re- collected because of the dips that are with clean new sanitary sewer systems construction in Iraq, all wasted? With cut out in the prairie from the last gla- and sewer plants to be able to handle no oversight, no oversight, Mr. Speak- cier, well, the water that collects there their systems in a modern fashion and er? I take exception to a statement reminds me of the oil; and certainly an environmentally friendly fashion. such as that. the oil is in smaller quantities that I went over to Iraq with three of my So the Iraqi people that were living collects in the depressions within the without services now have services. colleagues last August and returned desert up there around Kirkuk. here about August 20 with the very I will say that the electrical service And that is not the largest oil loca- that was up to 10, 11, perhaps even 12 mission in mind to take a look at tion up around Kirkuk; but down here where the $18.5 billion that we allo- hours a day in Baghdad at the begin- in the southern part, in the Basra re- ning of the liberation is down to less cated out of this Congress had been gion, there is far more oil. And I look spent, where the practices were, where than that now, perhaps even as low as at the system of collection, the well 4 to 6 hours a day. But the rest of Iraq the projects were, how the money was system, the collection system, the re- being spent and what was the return on was getting 2 to 4 hours a day, and now finery system, distribution system. All they are up to 10, 11, 12 hours of elec- that investment. And Mr. Speaker, I of it is old, tired, dilapidated, has not brought a chart along with me, coinci- tricity a day. The next wave is to in- been reconstructed or modernized in at dentally, not knowing that would be crease the generation capacity and the least 35 years; and yet the oil produc- the subject matter that was brought up distribution so that Baghdad can get tion out of Iraq is greater than it was, here on the other side of the aisle this back up again to a level that they were Mr. Speaker. evening, a chart that illustrates where before. We keep hearing, no, they are not these project dollars have gone. But overall there is more electricity I would point out, Mr. Speaker, that producing as much oil now as they being provided into Iraq today than these red dots on this map of Iraq rep- were then. Not true. The royalties that there ever was. The demand is perhaps resent 2,200, more than 2,200 completed Iraq was receiving prior to the war twice as great as it was, Mr. Speaker, projects in Iraq. And these projects will were $5 billion a year. The royalties because you know what happens when be road projects, they will be sewer that are coming from the oil that is people get electricity. They figure out projects, water, drinking water, pota- pumping today are $26 billion a year. a way that they can put another appli- ble water projects. They will also be That does not necessarily reflect that ance to work and plug it into a wall some bridge projects and some pipeline they are pumping five times as much and use it. Like air conditioners that work for the oil pipe lines that are oil, but it reflects that they are selling did not exist in any significant num- there. You will see along on this border perhaps more oil than they did then bers, now they are there in significant with Iran, the red dots along there, and pumping more oil than they did. numbers, tapped into that electricity. many of those are border defense sta- The electricity that is being gen- We also know that satellite tele- tions. And what you will not see are erated in Iraq is a number that is close visions were against the law in March the 250 planned border defense stations to twice as much electricity at their of 2003, and today Iraq is replete with that are under construction or in plan- peak days as it was on a standard day satellite dishes on rooftop after roof- ning around these other borders that in Iraq at the beginning of the libera- top. In fact, I did a survey from the air we have. There is another 1,100 projects tion back in March of 2003, Mr. Speak- by helicopter over the top of a region that are either in planning or under er. And as I measure project after up in Kirkuk where many homes were construction that do not show up yet project, benefit after benefit, it cannot built in about the same style, and I had on this chart, Mr. Speaker. I will have be said that, and I will quote again, done so over the rooftops of Mosul in a chart that reflects the projects that ‘‘all that money is wasted.’’ How could the fall of 2003; and there my survey are planned, the projects that are all that money be wasted when we have showed that about two-thirds of the started. 2,200 completed projects, 3,300 projects homes then already had satellite TVs, Then this one reflects just the altogether, people that have potable and now I am seeing that in some of projects that are completed, over 2,200; water that never had it before, people the neighborhoods in Kirkuk there ac- and I visited a number of these. Of that have flush toilets that did not tually are more satellite dishes than course, it would not be possible to visit flush before, they did not have water to there are roofs. them in their entirety, but I stopped up flush in them? So you will see sometimes two or here in this region around Kirkuk and Looking at the infrastructure that is even three satellite dishes on a single there went to the mother of all genera- there in places in Baghdad where they roof that look like they are single-fam- tors. I forget just how many kilowatts had the sanitary sewer, and I would ily dwellings from the air. Everyone in that generator does put out, but I re- point out for the lay person listening, Iraq has access to satellite TV, which member what it weighed, 750,000 Mr. Speaker, that a sanitary sewer is means access to the outside world. pounds, brought in on two large loads, not really all that sanitary. That is There is access to Internet, cell phones. and then the other loads would be the what you run your sewage through. Those things have grown dramatically. rest of the generating plant across And yet that sewer was an easy place Landline telephones have grown dra- about 10.7 kilometers. for some people to pull a waterline matically. The number of newspapers

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00039 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE H266 CONGRESSIONAL RECORD — HOUSE February 14, 2006 are up to over 175 newspapers in Iraq. ration to the rest of the Arab world, an That is a chilling concept, but it also Television stations up and running, inspiration that can cause the rest of should tell us that there is no nego- communication is flowing, free enter- them to see what Iraq is stepping into, tiated settlement, we must defend our- prise is robust in the streets of Bagh- what they are earning along with the selves. The Israelis have had to guard dad. People that are running shops out coalition forces’ efforts and sacrifice to every theater, every bus stop, every there, making furniture out alongside be able to be that inspiration for the hospital, every school, every syna- the streets, set it out on the side of the rest of the Arab world. And if that day gogue, and still the infiltrators come in street and sell it. comes, and I pray it comes, Mr. Speak- and detonate their bombs and blow And, yes, Mr. Speaker, a bomb goes er, we may well see freedom echo their women and children to pieces. off once in a while, and it is sad and it across the Arab world in the same fash- That happens out of a deep hatred is tragic. But the people of Iraq clean ion that it echoed across Eastern Eu- that we don’t understand in this coun- things up and they grieve and they go rope when the Wall went down in Ber- try, and I don’t claim to understand it. back to work, Mr. Speaker, because lin November 9, 1989, on that glorious But I know that hatred is directed at they are optimistic about the future of day that symbolized the end of the us. We saw it September 11. We saw it Iraq. They are more optimistic about Cold War, a victory for the United on 18 to 20 other attacks, including the the future of Iraq than the surveys States and the forces of freedom. USS Cole. We saw it in the U.S. em- show people are in the United States of And the forces of freedom could not bassy bombings in Africa. We have seen America. What went wrong here where be stopped, Mr. Speaker. Almost the first attack also on the Twin Tow- people that we say do not have hope bloodlessly they echoed across Eastern ers, in other efforts shut off by good in- have more hope than those of us folks Europe, and we saw country after coun- telligence work in this country. that have the great blessing of living in try be liberated. We cannot rest. Our choices though are guard every theater, every bus the United States of America with all b 2320 of this hope that we take for granted stop, every school, every hospital, Since that time, we have noticed every church, every synagogue and pull and cannot apparently appreciate? that those who knew freedom the least So the effort that has been put forth back into the shores of the United hungered for it the most. The people on there, Mr. Speaker, it is not all that States and somehow think that we can the east side of the wall stepped up to protect every center in this country, money that is being wasted, not by a help all of our efforts, our coalition long shot, Mr. Speaker: 3,300 projects, and we won’t be able to, and we will see forces in Iraq, in greater numbers than the attacks come, and we will see our all of them worthy and worthwhile. the people on the west side of the wall. And, no, they were not all cheap. There women and children and our men blown The people on the west side of the into pieces. was money that was spent for security, wall had the privilege of living with Or we can take this battle to them, and there were some projects that were freedom since the end of World War II. we can fight this war where they are. sabotaged that had to be reconstructed The people on the east side of the wall But going out just to kill the enemy, again. remember the days they weren’t free. Mr. Speaker isn’t enough. It is not a There is a project over here on the They remember the day of November 9, solution. It is something that has to be Tigris River south of Kirkuk where 1989, when they had that opportunity done in certain areas of the world and there were nine pipelines that went to grasp their own freedom, and within under those circumstances where there across the Tigris River, and those pipe- a couple of years that freedom did echo are training camps and active leaders lines were cut in the liberation oper- across Eastern Europe, and it needs to that are plotting and planning to at- ations with the U.S. Air Force. And we echo across the Arab world. tack and kill Americans, that must be went back to patch those pipelines to- So, Mr. Speaker, I submit that there done, Mr. Speaker. gether, did so. They were sabotaged is a vision and mission in this overall But to go out and think that we again. They were put across the river War on Terror, and we need to do a far could kill all of our enemies is the on a bridge, and so we undertook the better job of articulating why we are in equivalent of realizing that we had a effort to put them all underneath the this war. I would point out that the lot of flies on our porch and in our bottom of the Tigris River. They are loss of Americans on September 11 was kitchen and then go out to the barn backfilling that now, Mr. Speaker, and right at 3,000 Americans. That is more with the fly swatter and think we are it is nearly completed; and those lines Americans lost there than was lost De- going to take care of all those flies in will be opened up and running by, I be- cember 7, 1941, in that day that would the barn with the fly swatter. No. You lieve the target date is February 28. live in infamy. can swat flies in the barn all day every So another big day to turn those We cannot forget September 11. We day, and you will never accomplish the valves on and get that oil flowing cannot forget that we were attacked task. You have got to change the habi- south into parts where it can be con- without cause. We didn’t provoke any- tat that breeds that many flies. You verted back to cash and be able to help one who attacked us. They attacked us have to clean the barn, Mr. Speaker, the funding in the great country of because they hate our way of life. They and you need to leave an environment Iraq, this emerging free Arab country attacked the very center of western in there that doesn’t breed those flies, that has now at least brought forth the civilization. and then they will leave you alone on name of a prime minister, and I do not And no amount of negotiation, un- the porch and in your kitchen as well. think formally has elected him yet. derstanding, no amount of sitting So I submit that the plan of the But on that day that that happens and around and talking, is ever going to re- United States and the mission that has they seek this duly elected parliament, solve this disagreement. These people been laid out by our Commander-in- Iraq becomes the most representative want us dead. They have demonstrated Chief President Bush is to create a new Arab nation in the world. that, and we saw the celebrations in habitat, to promote a new habitat in When they sit down at the United Na- the streets in other parts of the world the region. This is a habitat called tions and their representative speaks as the Twin Towers fell. That should freedom. We happen to know that on behalf of the Iraqi people, it will tell us that they will give us no quar- where there is freedom, there isn’t a truly be a voice of the Iraqi people, ter. habitat that breeds terrorists. We have quite unlike the voice of much of the If anyone doubts that, take a look at never gone to war against another free rest of the Arab world where the voice Israel. Take a look and see the cir- people. It has never happened in the that speaks for the countries that rep- cumstances there when the Israelis history of this country, and I don’t resent those parts of the Arab world in thought they could trade land for think it has actually happened in the the United Nations often is the voice of peace, and yet they are still attacked. history of the world. a tyrant that would cut the tongues Hamas won the election there. That So to the extent that freedom can be out of its own citizens if they spoke up means the terrorists, the people who promoted and we give people that op- in criticism of the regime that is there are sworn to annihilate the land of portunity to reach out and grasp and in many of those countries. Israel, are running the government of earn their own freedom, is also the ex- But this country can become the the region that may or may not be a tent to which we can be safer as a peo- lodestar of a free Arab people, an inspi- nation called Palestine. ple, western civilization can be safer,

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00040 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — HOUSE H267 and the people in that part of the world This President, our Commander-in- Perhaps the best quality people that can learn some tolerance for Christi- Chief, Mr. Speaker, has had the will to have ever gone to war for a country are anity, for Judaism, for capitalism, for challenge. He has had the will to lay the people that are out there defending free enterprise, for this whole idea of out the vision and he has had the com- our freedom today, and we owe them western civilization that they seem to mitment to stand in the face of a tre- everything we have, all the support we take such exception to. There are good mendous amount of criticism. have, all the best training, all the best people in that part of the world, Mr. It has been a disappointment to me, equipment. But we owe them a voice of Speaker, and those good people need to Mr. Speaker, to hear that criticism. support here on the floor of the United be empowered and we need to be sup- When I go to the hospitals and visit our States Congress, Mr. Speaker. portive of them. wounded soldiers, when I visit our sol- b 2330 The allegations that were made here diers in the field in Iraq and over in the on the other side of the aisle, Mr. Middle East, when I stop at Landstuhl We owe them that voice in our na- Speaker, about corruption in Iraq with at the hospital there and land at tional media. We owe them that voice millions of U.S. dollars, we don’t know Ramstein and go over to Landstuhl, in our schools, in our town squares, in that. And I won’t tell you that you can Germany, to visit wounded in the hos- our town halls, in our coffee shops, in go into an environment with a $18.5 bil- pital there, where I have been three our churches. Everywhere across this lion mission and spend every dollar times; when I go to Bethesda Naval land we owe them a voice of support. that would be competitive with a Hospital to visit the wounded, gen- And I would point out that Clause- project in the United States, because I erally the wounded Marines and the witz, the great writer, his philosophy know that some of that money had to corpsmen that are there; when I go to on war, and I believe that was his go for security, and some of that Walter Reed to visit the wounded sol- work, ‘‘On War,’’ stated that the object money had to go for a high price to get diers that are there, and I listen to of war was to destroy the enemy’s abil- the work done, because who would go them talk to me, Mr. Speaker, and ity and will to wage war. Destroy their into that environment and do that there has been a certain Member of ability and their will. work? But, Mr. Speaker, that work was Congress from Pennsylvania that has But we are at war, Mr. Speaker. And necessary. And to the extent that any- gotten a lot of press relating to the our troops are over there in harm’s one has defrauded this government, public criticism that he claims comes way. And they are actively destroying yes, we need to search that out. We from wounded soldiers, I have never the enemy’s ability to wage war. And need to have oversight. heard a word of that kind of criticism as they lose their ability, it destroys But Democrats in this Congress, Mr. their will. Speaker, are not absolved from that re- from a single soldier that I visited, and I do not let a quarter go by without But what, Mr. Speaker, puts the en- sponsibility. I did not hear a single so- ergy back in our enemy? What gives lution come out here on the other side being to one of those hospitals to visit our wounded, and I will always go in an them back their will as their will is de- of the aisle, not one. All I saw was stroyed on the battlefield in Iraq, that complaints, lamentations, objections, visit. As long as there are soldiers that need to be visited, I will visit them. is being destroyed because their ability because all things that go wrong are all is being taken away from them? Their Republican responsibility according to I have never heard one soldier tell me that he regretted volunteering for the will is being replaced by the voices of the other side of the aisle, and, of some of the people that are quasi-lead- course, if they were just in power, then United States militarily or that he re- gretted serving or he didn’t believe in ers of the United States of America everything would be all fine. that make such statements as, and I But we don’t know what they would this mission or in this cause. Not one. will quote Howard Dean, the chairman do, because they haven’t proposed a so- I had dinner a couple of weeks ago of the DCCC, he said the idea that we lution, not a single specific solution. with a nurse who spent a year-and-a- are going to win in Iraq is just plain They are absolutely without an agen- half at Landstuhl and dealt with hun- wrong. Well, how wrong can that be? da. But they have enough energy, they dreds of wounded that came through. How wrong can that be to encourage have enough air velocity in their lungs Most all of the wounded come through to every night come down here and from Iraq into Landstuhl in Germany the enemy, discourage our military, to beat up on the people that are out here and then come to the United States. make that statement over and over trying to move America ahead. I asked her if she had heard any of again? And that voice comes out of One statement was said that I will that sentiment about wounded soldiers people from the other side of the aisle agree with, made by the gentleman regretting serving their country or not day after day after day, a constant from Florida. He said, ‘‘I am so glad believing in this mission. And her an- drum beat of despair. that I am not a member of the major- swer was, no, she had never heard a sin- It has been a constant drum beat of ity.’’ Well, to the gentleman from Flor- gle soldier utter such a thing. In fact, despair over here for the previous hour ida, I want to say I am so glad you are she said, almost all of them feel guilty before I came to the floor, and it will not a member of the majority as well, that they were wounded and they can’t be a constant drum beat of despair and so are the majority of the Amer- be back with their troops. They want every single night that they have an ican people who have seen to it that to take that responsibility of going opportunity to have this platform here there is majority in charge in this Con- back with their troops into the the- on the floor of the United States Con- gress. ater, back to Iraq, to finish their tour gress, Mr. Speaker. A constant drum We do have our work to do, Mr. of duty. That is the kind of patriotism beat of despair that encourages our Speaker. I won’t shirk that responsi- and dedication that comes with our enemy, discourages our own troops, bility. I step up to it gladly. But we military. And these are people that and works to be counterproductive. need to have our eyes wide open. We some of them have been burned badly, Clausewitz said the object of war is need to promote a responsible budget, some of them have very severe wounds, to destroy the enemy’s ability and will and I will be promoting a balanced some of them are amputees. to wage war. Well, the key to this, they budget and a path we can get to a bal- I have had more than one amputee are both tied together. Ability and will anced budget in a way that we can get tell me, ‘‘I am going to make the mili- are tied together. If you have a lot of the votes in this Congress to get it tary my career. I am going to get this ability, you also have enough con- done. If we do that, we can ensure fi- prosthetic, get my leg up and going, I fidence to have the will. nancial security for our children and am going to take the therapy, and I am As your ability diminishes, if you our grandchildren. But that financial going make a career out of the mili- lose your munitions and if your troops security that can come with fiscal re- tary. I have come this far.’’ are being destroyed, you do not have so sponsibility here in this Congress and a I had one tell me, ‘‘This wound where many tools to work with anymore so solid pro-growth tax policy isn’t secu- I lost my leg isn’t going to change my you begin to lose your will; you lose rity if we have to be continually under life in any way except I am going to your self-confidence. attack from an enemy that the other start a family now.’’ That level of vi- But I would submit that it is even side of the aisle would not have the sion, that level of commitment, Mr. simpler than Clausewitz said. It is this will to challenge. Speaker, is what we have out there. simple, Mr. Speaker: war is never over

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That requires us to destroy the casualty rates that are actually ratified the constitution and under their ability and their will to wage being inflicted on the enemy in Iraq. that constitution they elected seats for war. The numbers that I am about to give a new parliament, and just now pro- But if their will is weak, and if their are numbers that are several months moted the nomination for a new prime will is utterly weak, it does not matter old. I have not been briefed on those minister. That is a great long stride how much ability they have, it does numbers since prior to Christmas into the political solution, coming not matter how many tanks they have, sometime. right intertwined with and intermixed how many IEDs they have, how many But I will tell you that the Iraqis with, but on the heels of the security guns, how many soldiers. If they do not themselves on a monthly average for solution that comes from the military have the will to use them, the war is about a 3-month average were losing side. over. about 200 of their uniformed soldiers And now I hope that the Iraqi people, So if we can win a war simply by that were killed and most of them once they have the formal election, sending a letter to the enemy that killed in action every month, Mr. they elect a prime minister, I hope says, why do you not quit now, because Speaker, about 200. They were losing they sit down and go to work. I hope we will not, and we have the ability about 400 civilians every month. one of the first items on their agenda is and we have the will, so you need to The enemy was losing, between those the item that says look at this country have the understanding that it will not killed and captured, taken out of the that we have. Look at all of this oil up pay for you to fight, at that point the battlefield, about 3,000 a month. I also here around Kirkuk. We have got all of war could be over. If we convinced the point out that the overall casualties of this oil down here around Basra. We enemy that they could not win, they those killed, those numbers that were have got all of these resources that would lose their will to fight. up there that added up to a number of have been producing $26 billion in roy- Well, part of that will to fight comes more than 650 a month on our side, our alty revenues in oil from this dilapi- from the voices here on this side of the coalition side with Iraqi civilian, coali- dated structure that we have. We need Atlantic Ocean. And I point out, Mr. tion troops and Iraqi troops, that num- to find a way to inject foreign capital Speaker, that on an evening, as I was ber that was around 650 a month then, in here and punch new wells down into in the hotel in Kuwait, I was watching now has diminished dramatically, and the desert and bring that oil to the top al Jazeera TV. On that television show those casualties are down to around 50 of the ground and run it through refin- came Muqtada al Sadr. I think we a month. eries and down pipelines and out into know who he is: Bushy beard, rotten So big progress is being made. The the gulf and onto tankers that are sit- teeth, leader of a militia that has been sad part is statistically that is not ting down here off the gulf in that attacking Americans. He is a Shiaa showing up in American casualties; area, Mr. Speaker. rather than a Sunni. they are still suffering a greater pro- b 2340 And he was saying into the al portion of these casualties. Progress is Jazeera camera, if we keep attacking being made, though, Mr. Speaker; and They need to realize that that is Americans, they will leave Iraq the there is great light at the end of this their economic solution. So I would same way they left Vietnam, the same tunnel. submit the plan that I would submit way they left Lebanon, the same way It has almost moved out into the would be to have a competitive bidding they left Mogadishu. That should tell dawn. It has always been a three-com- process. Bring in the large oil compa- us what is going on in the minds of the ponent operation going on in Iraq. And nies in the world. Give them a chance enemy. They have been encouraged by the first component has always been to come in and bid and have them pay the incidents of Vietnam, by pulling the military component, liberation, royalties for the oil that they would our troops out of Lebanon, about pull- provide first regime change. Get Sad- take out of the ground. And if they ing out of Mogadishu. They think that dam out of power, and then provide se- need cash up front to continue their re- Americans will pull out. curity in the country. construction effort, and they do, I So the voice of the people here on the And that has been an ongoing battle. would ask that those bids come with floor of this Congress, Mr. Speaker, It has been difficult. I do not think upfront money so they would be ade- echoes through al Jazeera, and in sec- anybody predicted how difficult it quate, that Iraq could continue their onds it goes through the satellite would be. But the American soldiers reconstruction efforts and still open up dishes that are on the tops of nearly and marines have persevered. And now the oil fields and get this cash coming. every one of those houses in Iraq, and the second phase of this, and think of This $26 billion a year, I will not say down into the insurgent’s homes, and them really as intertwined efforts, but it is a drop in the bucket, that is a lot they will hear the English voices, prob- the military security effort first. of money, Mr. Speaker, but it can be a ably will not understand it, and it will The second effort that needed to lot more money, and it needs to be a come out in Arabic subtitles, and it come along behind that and partially lot more money. will say wrong war, wrong place, wrong intertwined with it is the political so- As this situation unfolds and the time. The idea that we are going to win lution. If we just have a military secu- Iraqis provide for more and more of in Iraq is just plain wrong. rity solution and a political solution, their own security and the political so- Those kinds of quotes that we know that does not get Iraq where they need lution comes into place where it is on from the other side have encouraged to go. They need to have an economic the cusp of having a ratified par- our enemy over and over again, and our solution as well. liament seated with a prime minister, enemy makes more and more bombs, So the phases of this, we are nearing a voice in the world that is credible extends this conflict longer and longer, the end of the phase of the security and a voice in the world for a sovereign and it costs American lives. That is the military solution, where more than Iraq that really represents the people bottom line. 237,000 Iraqis are now in uniform de- in Iraq, will be controlling their own Our job is to convince them that they fending Iraqis, where more than 30 destiny, and an oil revenue that gives cannot win, destroy their will. And bases have been handed over to the them a measure of financial independ- when they understand that they have Iraqis to man and maintain and take ence and can actually make them a lost, that is when they will quit, not care of and operate out of. very wealthy country, then you will before, Mr. Speaker. So it is imperative Those things are happening. That see some of these other things hap- that we stick together on this. We had transition is taking place. It is all con- pening. a debate in this Congress. It was a sig- sistent with a plan that has been in For example, about the only thing nificant majority that endorsed the place for more than a year. And so the being exported from Iraq right now are President’s authority. military solution is coming along. Re- dates, and the date exports have been

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A few po- Baghdad and around the country can also trucks parked in places in Geor- litical glitches in the way from build- be rejuvenated. gia. But it shut down this fuel down, ing that pipeline, Mr. Speaker. I think I want to also point out an inter- and prices went up, and we understood that should have been done a long time esting experience, and that is they how vulnerable we were to losing that ago. asked if I would give a speech to the supply of fuel that comes up from the I am not as concerned about that any Baghdad Chamber of Commerce. Of Gulf Coast and Louisiana area. longer as I am about our ability to drill course, I always say yes if anyone gives It is not just that. It is the fact that on the Outer Continental Shelf like me any speech time, Mr. Speaker, so I we have not produced energy to keep they do offshore in Texas, like they do said I would if we could fit it in the up with the increase in our consump- offshore in Louisiana, like they do not schedule. I believe it was at three tion. So we import more and more for- offshore going around Florida and up o’clock on a Thursday afternoon. So we eign oil. The last number that I saw the East Coast and up the West Coast came rolling into Baghdad, and we that I had confidence in was 61 percent as well. The Outer Continental Shelf, hustled into the Al Rasheed Hotel. of our oil comes from overseas. I see comparing the fertilizer inventory on They were starting to introduce me, that number published sometimes sig- the north slope of Alaska, which is 38 and I was not ready because I had not nificantly higher than that, and some- trillion cubic feet, with 406 trillion identified the interpreter. I said, Just a times it is predictions. Sometimes they cubic feet of natural gas offshore. And minute. Before you introduce me, I say it is a real number. that is what we have a pretty good idea would like to know who the interpreter Regardless, Mr. Speaker, we need to of without going out to inventory that is so I can speak to the interpreter and be less dependent on foreign oil; and I natural gas. A tremendous amount. I will know how to interact with him. am certainly more concerned about the It is sitting next door to the distribu- And they said, You will not need an in- oil that we purchase from countries tion system off the Louisiana coast. We terpreter. I said, Well, I do not speak a who have leaders who take positions could just drill our way on around word of Arabic. They said, You will not that are just contrary to that of the Florida on up the coast. We need to do need to. These people, there are about United States. that. We need to drill for that gas 56 or 57 members of the Baghdad Cham- Hugo Chavez down in Venezuela has where the market is, where the popu- ber of Commerce, you will not need to often given public statements that lation centers are. Yes, I am told that have an interpreter and you will not have been very, very critical to the Florida plans 33 generation plants com- need to speak Arabic because this United States. He leans towards Marx- ing up within this next year or two, group of people speaks English. And I ism. He is agitating for those kind of and 28 of them plan to be natural gas thought, This is sweet. governments in South America. There and they will not let us drill a single I spoke English to them for 30 min- have been elections in South America well, not even 199 miles offshore of utes or so. They reacted. They smiled that leaned a number of countries in Florida, anywhere, because someone on at the right times, frowned at the right that direction. Hugo Chavez has allied a tall tower with a powerful telescope times, clapped occasionally. They got with Castro. could somehow see the top of that der- up and asked questions. It was like The direction that has taken place in rick over the curvature of the Earth. being at home in Iowa. the Western Hemisphere because of the And somehow someone would find out I thought, if they can pull off this politics of the people that we are en- about that and they would not go to English here in Baghdad, we ought to riching by purchasing natural gas and Florida to sit on the beach when there be able to handle this in most of the oil from them causes me to ask, why has never been any kind of environ- places in the United States of America. are we enriching the people who would mental negative impact with natural They have got a great start on their position themselves to be our enemies? gas anywhere in the world. It just sim- economy there, and it has been a very Why are we losing the fertilizer indus- ply vaporizes and goes off in the air, rough time for them, but we are com- try in the United States? The cost of Mr. Speaker. mitted, and we will stay there. nitrogen fertilizer, 90 percent of that So I contend that on energy we need Mr. Speaker, to the people from Iraq cost is the cost of natural gas that it is to do a number of things, all in the who will one day look up this CONGRES- produced from. We have watched those context of grow the size of the energy SIONAL RECORD of perhaps tonight or fertilizer prices go up 4 and 500 percent pie. If you think of all the energy as a tomorrow, they need to know that in the last few years. We have watched pie, and that would include our nu- there is a broad, solid core of support natural gas prices go from $2 to $15. clear, our coal, our gas, our diesel fuel, in this Congress. We took a vote on They dropped back down some in the our ethanol, our bio-diesel, our wind, whether to stay with them or whether last several years as well but peaked our hydrogen, and a number of other to pull out, and this Congress voted 403 out at $15 here within the last couple of components of energy that we use and to 3 to stick with you in Iraq. We will months. produce, that can all be laid out now. be there, Mr. Speaker, and we will be We cannot produce fertilizer with The percentage of each would dictate there until this is done. And they are natural gas prices like that. Farmers the size of the piece of the size of the picking up this on their own. cannot afford to buy the fertilizer. So overall pie. I want to say a few words then about what is happening is our fertilizer in- We need to look at that. That is the the necessity. While they are providing dustry is going offshore, and it is a real finite amount of energy that we are more energy coming out of Iraq, how industry that is being built down in producing in this country. We need to come it is so important for us here in Trinidad Tobago. Also the fertilizer in- grow that. We need to expand the the United States to have a better en- dustry coming from Venezuela and amount of energy that is available to ergy policy than we have? We passed a Russia, Russia where their natural gas the consumers in America, and we need couple of energy bills last year, neither is 95 cents, ours was $15. You can see to change the proportion of those slices of which was I satisfied with, and I that we cannot compete with that. One of the pie. So, for example, why do we voted for them both because they move day we will see a fertilizer cartel in the use natural gas to generate electricity us down the road a little ways. They hands of the people that are posi- when it is becoming a more scarce did not get enough done. I want to see tioning themselves not to be our product that we need for fertilizer, for more done, Mr. Speaker. friends, Mr. Speaker. example? We sit here with a shortage of energy It is important that we have that So I would submit that we would in this country, and Hurricane Katrina kind of independence for our food sup- change the overall size of that to more certainly illustrated that. The short- ply. It is important that we have inde- fertilizer, less electrical production. age of energy that was shut off when pendence for our energy supply. It is We probably hit the limit that we can

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00043 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE H270 CONGRESSIONAL RECORD — HOUSE February 14, 2006 build hydroelectric dams in order to Shelf, not just bringing a pipeline down Ms. WASSERMAN SCHULTZ (at the re- generate electricity. from Alaska to deliver the natural gas quest of Ms. PELOSI) for today and the b 2350 from Alaska, but it also includes drill- balance of the week. ing for oil in ANWR. That stretch up Ms. WOOLSEY (at the request of Ms. The limit has been the environ- there, Mr. Speaker, that is 19.6 million PELOSI) for today and the balance of mentalists’ limit that we would hit acres. Out of that we are going to tap the week. there. We need to go back to nuclear into 2,000. Only 2,000 acres, .01 percent Mr. CAMPBELL of California (at the and generate a lot more electricity of that region, used to tap into the oil request of Mr. BOEHNER) for today and with nuclear. There is a clean coal con- that we know is there. That could the balance of the week on account of cept that can be used for baseline, coal- bring 1 million barrels or more of oil the death of his father. fired plants, and that can be used al- down to the lower 48 or actually down Mr. GIBBONS (at the request of Mr. most all over this country to produce a to Valdez and out on the tanker. That BOEHNER) for today on account of trav- tremendous amount of electricity. could happen in a very short period of el delay. All those things need to happen, and time if we would just step up here on Mr. GARY G. MILLER of California (at as the President said in this chamber the floor of this Congress, Mr. Speaker, the request of Mr. BOEHNER) for today just the last day of January, that we and have the people in the other body and the balance of the week on account need to expand the use of ethanol, and do the same thing. The President of illness. he is very credible when he says that, would sign the bill, and we would be Mr. WAMP (at the request of Mr. Mr. Speaker, because a fellow that one huge step closer to energy inde- BOEHNER) for today and the balance of comes from the oil patch, that is pro- pendence. the week on account of illness in the moting ethanol and renewable fuels, is All of these things need to happen in family. a person that you know believes in it. a country that should be able to plan f In Iowa, and the congressional dis- its future, in a country that should be SPECIAL ORDERS GRANTED trict that I have the privilege and able to debate its future and take ac- honor represent, they will be at nine tion on the floor of this Congress. By unanimous consent, permission to ethanol production facilities there by We have stepped forward and taken address the House, following the legis- the end of this year, perhaps even one on quite a task in this overall war on lative program and any special orders more. That will take us to the position terror. This place called Iraq is not the heretofore entered, was granted to: where we are producing from corn all war on terror. This is a battlefield in (The following Members (at the re- of the ethanol that we have the corn to the overall global war on terror, but quest of Mr. PALLONE) to revise and ex- supply. It means we can cannot use all our military has stepped forward and tend their remarks and include extra- of our corn for ethanol production. We done their job. We need to stand with neous material:) can perhaps use 25 percent of our corn them. We need to know and realize Mrs. MCCARTHY, for 5 minutes, today. for ethanol production, and ethanol is, that we are in a time of war and that Mr. EMANUEL, for 5 minutes, today. of course, going all over the country to means that we need to tighten our belt. Mr. PALLONE, for 5 minutes, today. be blended with gasoline. That requires sacrifice. That sacrifice Mr. FALEOMAVAEGA, for 5 minutes, Our markets in Iowa are voluntary. needs to let us find the will in this Con- today. When people go in and pull out the gress to move towards a balanced budg- Mr. GEORGE MILLER of California, for pump and the nozzle and put it in their et, a balanced budget that makes the 5 minutes, today. tank, they choose ethanol 81 percent of Bush tax cuts permanent because that Mr. WYNN, for 5 minutes, today. the time. It was 42 percent just a few fixes this growth rate in place so it has Mr. GENE GREEN of Texas, for 5 min- years ago. So it has almost doubled, a sense of permanency and a sense of utes, today. and that is a voluntary usage because predictability. We need to put those Ms. KAPTUR, for 5 minutes, today. people understand that it is economi- tax cuts in place, move towards a bal- Ms. HERSETH, for 5 minutes, today. cal, it is environmentally friendly, and anced budget, and provide a sense of fi- Ms. JACKSON-LEE of Texas, for 5 min- it reduces our dependence on foreign nancial security so that this con- utes, today. oil. tinuity of this long period of 10 con- (The following Members (at the re- So the President has advocated that secutive quarters of growth can go on quest of Mr. ENGLISH of Pennsylvania) within 25 years we reduce our depend- another 10 consecutive quarters. to revise and extend their remarks and ence on foreign oil by 75 percent. I I would go further with the taxes, Mr. include extraneous material:) think that is a doable goal, especially Speaker. Given the time that is al- Mr. DEAL of Georgia, for 5 minutes, with some of the technology that is out lowed here tonight I will simply tie February 15. there, making ethanol out of cellulose. this back with the energy side of this. Mr. NORWOOD, for 5 minutes, Feb- So that would be wood fiber and chips So, if good things are happening in the ruary 16. and even weeds and switch grass, and overall war on terror, if we control our Mr. JONES of North Carolina, for 5 yet corn stalks and all of that kind cel- spending on this budget, tighten our minutes, February 16. lulose that grows up out of the ground belt and if we sacrifice the way our Mr. POE, for 5 minutes, today and is all renewable. We can be energy military sacrifices, we can keep funds February 15. independent if, in fact, we had to be. It and resources going to them so they Mr. OSBORNE, for 5 minutes, today. would not take us very long to get can do their job. If we provide for more Mr. DREIER, for 5 minutes, today and there, Mr. Speaker. energy, grow the size of the energy pie, February 15 and 16. We need an overall strategy to grow we have laid out a destination for Mr. BURTON of Indiana, for 5 minutes, the size of the energy pie to change the America’s future that is an economic today and February 15 and 16. proportions of the size of those pieces and a security destiny, and without Ms. ROS-LEHTINEN, for 5 minutes, so that we use more of certain kinds of going into the social side of this, the today and February 15. energy, and I will advocate, as I said, constitutional aspects of it, that is Mr. FLAKE, for 5 minutes, today. nuclear and coal and ethanol to be most of what we need, Mr. Speaker, to Mr. ENGLISH of Pennsylvania, for 5 three of those that I would advocate we get this country where it needs to go. minutes, February 16. use a lot more of. We can do some So I want to thank the Speaker for Mr. KINGSTON, for 5 minutes, today. things with solar panels. That is an the privilege to address this House of f emerging technology, but change the Representatives. BILL PRESENTED TO THE proportion of the size of the pieces of f the energy pie so that we have a pru- PRESIDENT dent, long-term policy that can reduce LEAVE OF ABSENCE Karen L. Haas, Clerk of the House re- and, one day, eliminate our dependence By unanimous consent, leave of ab- ports that on February 9, 2006, she pre- on foreign oil. sence was granted to: sented to the President of the United It also includes not just drilling for Mr. HINCHEY (at the request of Ms. States, for his approval, the following oil and gas on the Outer Continental PELOSI) for today and February 15. bill.

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00044 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — HOUSE H271 H.R. 4636. To enact the technical and con- 6148. A letter from the Principal Deputy to sign a Project Arrangement concerning forming amendments necessary to imple- Associate Administrator, Environmental the U.S./U.K. Missile Defense Situational ment the Federal Deposit Insurance Reform Protection Agency, transmitting the Agen- Awareness Node, pursuant to 22 U.S.C. Act of 2005, and for other purposes. cy’s final rule — Interim Final Determina- 2767(f); to the Committee on International f tion to Stay and/or Defer Sanctions, Yolo- Relations. Solano Air Quality Management District 6156. A letter from the Assistant Secretary ADJOURNMENT [EPA-R09-OAR-2005-0557c; FRL-8024-9] re- for International Security Policy, Depart- ment of Defense, transmitting a Report on Mr. KING of Iowa. Mr. Speaker, I ceived February 1, 2006, pursuant to 5 U.S.C. 801(a)(1)(A); to the Committee on Energy and Proposed Obligations for Weapons Destruc- move that the House do now adjourn. Commerce. tion and Non-Proliferation in the Former So- The motion was agreed to; accord- 6149. A letter from the Principal Deputy viet Union and the Republic of Albania, pur- ingly (at 11 o’clock and 55 minutes Associate Administrator, Environmental suant to Public Law 104–106, section 1206(a) p.m.), the House adjourned until to- Protection Agency, transmitting the Agen- (110 Stat. 471); to the Committee on Inter- morrow, Wednesday, February 15, 2006, cy’s final rule — National Emission Stand- national Relations. at 10 a.m. ards for Hazardous Air Pollutants: Plywood 6157. A letter from the Assistant Secretary and Composite Wood Products; List of Haz- for Legislative Affairs, Department of State, f ardous Air Pollutants, Lesser Quantity Des- transmitting intention to support a resolu- EXECUTIVE COMMUNICATIONS, ignations, Source Category List [OAR-2003- tion in the United Nations Security Council to authorize maintaining the personnel ceil- ETC. 0048; FRL-8028-9] (RIN: 2060-AN05) received February 1, 2006, pursuant to 5 U.S.C. ing of the United Nations Operation in Cote Under clause 8 of rule XII, executive 801(a)(1)(A); to the Committee on Energy and d’Ivoire (UNOCI) at its current level until communications were taken from the Commerce. after nationwide presidential and parliamen- Speaker’s table and referred as follows: 6150. A letter from the Principal Deputy tary elections, pursuant to 22 U.S.C. 287(d) Associate Administrator, Environmental Public Law 109–108, section 4(d); to the Com- 6140. A letter from the Principal Deputy Protection Agency, transmitting the Agen- mittee on International Relations. Associate Administrator, Environmental cy’s final rule — Protection of Stratospheric 6158. A letter from the Assistant Secretary Protection Agency, transmitting the Agen- Ozone; The 2006 Critical Use of Exemption for Legislative Affairs, Department of State, cy’s final rule — Imazethapyr; Pesticide Tol- from the Phaseout of Methyl Bromide [FRL- transmitting a report on gifts given by the erance [EPA-HQ-OPP-2005-0508; FRL-7755-8] 8028-2] (RIN: 2060-AN18) received February 1, United States to foreign individuals for the received February 1, 2006, pursuant to 5 2006, pursuant to 5 U.S.C. 801(a)(1)(A); to the period October 1, 2004 through September 30, U.S.C. 801(a)(1)(A); to the Committee on Ag- Committee on Energy and Commerce. 2005, pursuant to Public Law 95–105; to the riculture. 6151. A letter from the Principal Deputy Committee on International Relations. 6141. A letter from the Comptroller, De- Associate Administrator, Environmental 6159. A letter from the Assistant Secretary partment of Defense, transmitting a report Protection Agency, transmitting the Agen- for Legislative Affairs, Department of State, of a violation of the Antideficiency Act by cy’s final rule — Revisions to the California transmitting consistent with the Authoriza- the Department of the Army, Case Number State Implementation Plan, Ventura County tion for Use of Military Force Against Iraq Resolution of 2002 (Pub. L. 107–243), the Au- 02-06, pursuant to 31 U.S.C. 1517(b); to the Air Pollution Control District, Yolo-Solano thorization for the Use of Force Against Iraq Committee on Appropriations. Air Quaility Management District [EPA-R09- Resolution (Pub. L. 102–1), and in order to 6142. A letter from the Comptroller, De- OAR-2005-0557a; FRL-8025-2] received Feb- keep the Congress fully informed, a report partment of Defense, transmitting a report ruary 1, 2006, pursuant to 5 U.S.C. prepared by the Department of State for the of a violation of the Antideficiency Act by 801(a)(1)(A); to the Committee on Energy and August 15, 2005 — October 15, 2005 reporting the Department of the Navy, Case Number Commerce. 04-01, pursuant to 31 U.S.C. 1517(b); to the 6152. A letter from the Director, Inter- period including matters relating to post-lib- Committee on Appropriations. national Cooperation, Deparment of Defense, eration Iraq under Section 7 of the Iraq Lib- eration Actof 1998 (Pub. L. 105–338); to the 6143. A letter from the Under Secretary for transmitting pursuant to Section 27(f) of the Committee on International Relations. Acquisition, Technology and Logistics, De- Arms Export Control Act and Section 1(f) of partment of Defense, transmitting the De- 6160. A letter from the Acting Assistant Executive Order 11958, a copy of Transmittal Secretary for Legislative Affairs, Depart- partment’s report on the amount of pur- No. 04-06 which informs of an intent to sign chases from foreign entities for Fiscal Year ment of State, transmitting a Memorandum an Memorandum of Agreement (MOA) Con- of Justification for the waiver of loan default 2005, pursuant to Public Law 104–201, section cerning Combating Terrorism Research and 827 (110 Stat. 2611); to the Committee on assistance restrictions under Section 620(q) Development with Singapore, pursuant to 22 of the Foreign Assistance Act to support the Armed Services. U.S.C. 2767(f); to the Committee on Inter- 6144. A letter from the Senior Vice Presi- government of the Democratic Republic of national Relations. Congo; to the Committee on International dent for Congressional Affairs, Export-Im- 6153. A letter from the Director, Inter- port Bank, transmitting the Bank’s FY 2005 Relations. national Cooperation, Department of De- 6161. A letter from the Office of the Inde- annual report for the Sub-Saharan Africa fense, transmitting pursuant to Section 27(f) pendent Counsel, transmitting the 2005 an- Initiative; to the Committee on Financial of the Arms Export Control Act and Section nual report for the Office of Independent Services. 1(f) of Executive Order 11958, a copy of Trans- Counsel-Barrett, pursuant to 28 U.S.C. 6145. A letter from the Principal Deputy mittal No. 02-06 which informs of an intent 595(a)(2); to the Committee on Government Associate Administrator, Environmental to sign an Memorandum of Agreement Reform. Protection Agency, transmitting the Agen- (MOA) regarding the Organizational Struc- 6162. A letter from the Federal Co-Chair, cy’s final rule — Approval and Promulgation ture and Exploitation Systems (BICES) be- Appalachian Regional Commission, trans- of Air Quality Implementation Plans; Maine; tween the United States and Belgium, Bul- mitting in accordance with Section 647(b) of Nitrogen Oxides Exemption Request for garia, Canada, Czech Republic, Denmark, Es- Title VI of the Consolidated Appropriations Northern Maine [EPA-R01-OAR-2005-ME-0007; tonia, France, Germany, Greece, Hungary, Act, FY 2004, Pub. L. 108–199, the Commis- A-1-FRL-8027-5] received February 1, 2006, Iceland, Italy, Latvia, Lithuania, Luxem- sion’s report on FY 2005 Competitive pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- bourg, Netherlands, Norway, Poland, Por- Sourcing Efforts; to the Committee on Gov- mittee on Energy and Commerce. tugal, Romania, Slovakia, Slovenia, Spain, ernment Reform. 6146. A letter from the Principal Deputy Turkey and the United Kingdom, pursuant to 6163. A letter from the Assistant Secretary Associate Administrator, Environmental 22 U.S.C. 2767(f); to the Committee on Inter- for Administration and Management, De- Protection Agency, transmitting the Agen- national Relations. partment of Health and Human Services, cy’s final rule — Approval and Promulgation 6154. A letter from the Director, Inter- transmitting in accordance with Section of Implementation Plans; Wisconsin; General national Cooperation, Department of De- 647(b) of Title VI of the Consolidated Appro- and Registration Permit Programs [EPA- fense, transmitting pursuant to Section 27(f) priations Act, FY 2004, Pub. L. 108–199, the R05-OAR-2005-WI-0003; FRL-8020-1] received of the Arms Export Control Act and Section Department’s Report to Congress on FY 2005 February 1, 2006, pursuant to 5 U.S.C. 1(f) of Executive Order 11958, a copy of Trans- Competitive Sourcing Efforts; to the Com- 801(a)(1)(A); to the Committee on Energy and mittal No. 03-06 which informs of an intent mittee on Government Reform. Commerce. to sign an Memorandum of Agreement 6164. A letter from the Administrator, En- 6147. A letter from the Principal Deputy (MOA) Concerning Combating Terrorism Re- vironmental Protection Agency, transmit- Associate Administrator, Environmental search and Development with Australia, pur- ting the semiannual report on the activities Protection Agency, transmitting the Agen- suant to 22 U.S.C. 2767(f); to the Committee of the Office of Inspector General for the pe- cy’s final rule — Final Rule Making Findings on International Relations. riod April 1, 2005, through September 30, 2005, of Failure to Submit Required State Imple- 6155. A letter from the Director, Inter- pursuant to 5 U.S.C. app. (Insp. Gen. Act) mentation Plans for Phase II of the NOx SIP national Cooperation, Department of De- section 5(b); to the Committee on Govern- Call [Docket No. OAR-2005-0154; FRL-8028-8] fense, transmitting pursuant to Section 27(f) ment Reform. received February 1, 2006, pursuant to 5 of the Arms Export Control Act and Section 6165. A letter from the Chairman, Federal U.S.C. 801(a)(1)(A); to the Committee on En- 1(f) of Executive Order 11958, a copy of Trans- Maritime Commission, transmitting in ac- ergy and Commerce. mittal No. 05-06 which informs of an intent cordance with Section 647(b) of Title VI of

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00045 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE H272 CONGRESSIONAL RECORD — HOUSE February 14, 2006 the Consolidated Appropriations Act, FY 6176. A letter from the Program Analyst, ant to 5 U.S.C. 801(a)(1)(A); to the Committee 2004, Pub. L. 108–199, the Commission’s report FAA, Department of Transportation, trans- on Transportation and Infrastructure. on FY 2005 Competitive Sourcing Efforts; to mitting the Department’s final rule — 6186. A letter from the Program Analyst, the Committee on Government Reform. Standard Instrument Approach Procedures, FAA, Department of Transportation, trans- 6166. A letter from the Chairman and Act- Weather Takeoff Minimums; Miscellaneous mitting the Department’s final rule — Estab- ing General Counsel, National Labor Rela- Amendments [Docket No. 30471; Amdt. No. lishment of Class E Airspace; Nenana, AK tions Board, transmitting in accordance with 3146] received February 7, 2006, pursuant to 5 [Docket No. FAA-2005-22022; Airspace Docket Section 645 of Division F, Title VI, of the U.S.C. 801(a)(1)(A); to the Committee on No. 05-AAL-21] received February 7, 2006, pur- ConsolidatedAppropriations Act, FY 2004, Transportation and Infrastructure. suant to 5 U.S.C. 801(a)(1)(A); to the Com- Pub. L. 108–199, the Board’s report covering 6177. A letter from the Program Analyst, mittee on Transportation and Infrastruc- fiscal year 2004; to the Committee on Gov- FAA, Department of Transportation, trans- ture. ernment Reform. mitting the Department’s final rule — 6187. A letter from the Program Analyst, 6167. A letter from the General Counsel, Of- Standard Instrument Approach Procedures, FAA, Department of Transportation, trans- fice of Government Ethics, transmitting the Weather Takeoff Minimums, Miscellaneous mitting the Department’s final rule — Estab- FY 2005 annual report under the Federal Amendments [Docket No. 30469; Amdt. No. lishment of Class E Enroute Domestic Air- Managers’ Financial Integrity Act (FMFIA), 3144] received February 7, 2006, pursuant to 5 space Area, San Luis Obispo, CA [Airspace pursuant to 31 U.S.C. 3512(c)(3); to the Com- U.S.C. 801(a)(1)(A); to the Committee on Docket No. 05-AWP-12] received February 7, mittee on Government Reform. Transportation and Infrastructure. 2006, pursuant to 5 U.S.C. 801(a)(1)(A); to the 6168. A letter from the Deputy Director for 6178. A letter from the Program Analyst, Committee on Transportation and Infra- Administration and Information Manage- FAA, Department of Transportation, trans- structure. ment, Office of Government Ethics, trans- mitting the Department’s final rule — Air- 6188. A letter from the Program Analyst, mitting in accordance with Section 647(b) of worthiness Directives; Boeing Model 767-200 FAA, Department of Transportation, trans- Title VI of the Consolidated Appropriations and -300 Series Airplanes [Docket No. FAA- mitting the Department’s final rule — Estab- Act, FY 2004, Pub. L. 108–199, the Office’s Re- 2005-20357; Directorate Identifier 2004-NM-120- lishment of Class E Airspace; Artic Village, port to Congress on FY 2005 Competitive AD; Amendment 39-14377; AD 2005-23-19] re- AK [Docket No. FAA-2005-22021; Airspace Sourcing Efforts; to the Committee on Gov- ceived January 24, 2006, pursuant to 5 U.S.C. Docket No. 04-AAL-06] received February 7, ernment Reform. 801(a)(1)(A); to the Committee on Transpor- 2006, pursuant to 5 U.S.C. 801(a)(1)(A); to the 6169. A letter from the Chairman, Postal tation and Infrastructure. Committee on Transportation and Infra- Rate Commission, transmitting a copy of the 6179. A letter from the Program Analyst, structure. annual report in compliance with the Gov- FAA, Department of Transportation, trans- ernment in the Sunshine Act during the cal- mitting the Department’s final rule — Air- f endar year 2005, pursuant to 5 U.S.C. 552b(j); worthiness Directives; Fokker Model F27 REPORTS OF COMMITTEES ON to the Committee on Government Reform. Mark 050 Airplanes [Docket No. FAA-2005- PUBLIC BILLS AND RESOLUTIONS 6170. A letter from the Secretary to the 23214; Directorate Identifier 2001-NM-338-AD; Board, Railroad Retirement Board, transmit- Amendment 39-14399; AD 2005-25-06] (RIN: Under clause 2 of rule XIII, reports of ting in accordance with Section 647(b) of Di- 2120-AA64) received January 24, 2006, pursu- committees were delivered to the Clerk vision F of the Consolidated Appropriations ant to 5 U.S.C. 801(a)(1)(A); to the Committee for printing and reference to the proper Act, FY 2004, Pub. L. 108–199, and the Office on Transportation and Infrastructure. calendar, as follows: of Management and Budget Memorandum M- 6180. A letter from the Program Analyst, [Filed on February 10, 2006] 06-01, the Board’s report on competitive FAA, Department of Transportation, trans- sourcing efforts for FY 2005; to the Com- mitting the Department’s final rule — Mr. HYDE: Committee on International mittee on Government Reform. Amendment to Class E Airspace, Wenatchee, Relations. House Resolution 593. Resolution 6171. A letter from the Commissioner, So- WA [Docket FAA 2005-20417; Airspace Docket directing the Secretary of State, the Sec- cial Security Administration, transmitting No. 05-ANM-06] received February 7, 2006, retary of Defense, the Secretary of Homeland the Administration’s report to on Fiscal pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- Security, and the Attorney General, and re- Year 2005 Competitive Sourcing Efforts as re- mittee on Transportation and Infrastruc- questing the President, to provide certain in- quired by the Consolidated Appropriations ture. formation to the House of Representatives Act of FY 2004; to the Committee on Govern- 6181. A letter from the Program Analyst, relating to extraordinary rendition of cer- ment Reform. FAA, Department of Transportation, trans- tain foreign persons (Rept. 109–374), ad- 6172. A letter from the Acting Director, mitting the Department’s final rule — Estab- versely. Referred to the House Calendar. FEMA, Department of Homeland Security, lishment of Class E Airspace; Hillsboro, TX Mr. HYDE: Committee on International transmitting notification that funding under [Docket No. FAA-2005-22998; Airspace Docket Relations. House Resolution 624. Resolution Title V, subsection 503(b)(3) of the Robert T. No. 2005-ASW-19] received February 7, 2006, requesting the President of the United Stafford Disaster Relief and Emergency As- pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- States and directing the Secretary of State sistance Act, as amended, has exceeded $5 mittee on Transportation and Infrastruc- to provide to the House of Representatives million for the response to the emergency ture. certain documents in their possession relat- declared as a result of Tropical Storm Rita 6182. A letter from the Program Analyst, ing to United States policies under the on September 18 through October 23, 2005 in FAA, Department of Transportation, trans- United Nations Convention Against Torture the state of Florida, pursuant to 42 U.S.C. mitting the Department’s final rule — Revi- and Other Cruel, Inhuman or Degrading 5193; to the Committee on Transportation sion of Class E Airspace; Egeglik, AK [Dock- Treatment or Punishment and the Geneva and Infrastructure. et No. FAA-2005-22023; Airspace Docket No. Conventions (Rept. 109–375), adversely. Re- 6173. A letter from the Program Analyst, 05-AAL-22] received February 7, 2006, pursu- ferred to the House Calendar. FAA, Department of Transportation, trans- ant to 5 U.S.C. 801(a)(1)(A); to the Committee Mr. HYDE: Committee on International mitting the Department’s final rule — Estab- on Transportation and Infrastructure. Relations. House Resolution 642. Resolution lishment of Class D Airspace, Modification 6183. A letter from the Program Analyst, requesting the President and directing the to Class E; Galveston, TX [Docket No. FAA- FAA, Department of Transportation, trans- Secretary of State to provide to the House of 2005-22999; Airspace Docket No. 2004-ASW-20] mitting the Department’s final rule — Modi- Representatives certain documents in their received January 25, 2006, pursuant to 5 fication of Class E Airspace; Kennett, MO possession relating to the Secretary of U.S.C. 801(a)(1)(A); to the Committee on [Docket No. FAA-2005-22746; Airspace Docket State’s trip to Europe in December 2005. Transportation and Infrastructure. No. 05-ACE-32] received February 7, 2006, pur- (Rept. 109–376), adversely. Referred to the 6174. A letter from the Program Analyst, suant to 5 U.S.C. 801(a)(1)(A); to the Com- House Calendar. FAA, Department of Transportation, trans- mittee on Transportation and Infrastruc- f mitting the Department’s final rule — Estab- ture. f lishment of Class D Airspace, Modification 6184. A letter from the Program Analyst, to Class E; Rogers, AR [Docket No. FAA- FAA, Department of Transportation, trans- PUBLIC BILLS AND RESOLUTIONS 2004-19599; Airspace Docket No. 2004-ASW-12] mitting the Department’s final rule — Revi- Under clause 2 of rule XII, public received January 24, 2006, pursuant to 5 sion of Class E Airspace; Nikolai, AK [Dock- U.S.C. 801(a)(1)(A); to the Committee on et No. FAA-2005-22094; Airspace Docket No. bills and resolutions were introduced Transportation and Infrastructure. 05-AAL-28] received February 7, 2006, pursu- and severally referred, as follows: 6175. A letter from the Program Analyst, ant to 5 U.S.C. 801(a)(1)(A); to the Committee By Mr. BASS (for himself, Mr. FAA, Department of Transportation, trans- on Transportation and Infrastructure. GILCHREST, Mr. DELAHUNT, Mr. ORTIZ, mitting the Department’s final rule — 6185. A letter from the Program Analyst, Mr. CARDIN, Mr. FLAKE, Ms. HERSETH, Standard Instrument Approach Procedures; FAA, Department of Transportation, trans- Mr. MORAN of Kansas, Mr. STUPAK, Miscellaneous Amendments [Docket No. mitting the Department’s final rule — Modi- Mr. WYNN, Ms. BORDALLO, Mr. SIM- 30470; Amdt. No. 3145] received January 24, fication of the Norton Sound Low Offshore MONS, Mr. OLVER, Mr. RYUN of Kan- 2006, pursuant to 5 U.S.C. 801(a)(1)(A); to the Airspace Area; AK [Docket No. FAA-2005- sas, Mr. POMEROY, Mr. BRADLEY of Committee on Transportation and Infra- 22399; Airspace Docket No. 05-AAL-27] (RIN: New Hampshire, Mr. BOUSTANY, Mr. structure. 2120-AA66) received February 7, 2006, pursu- VAN HOLLEN, Mr. MELANCON, Mr.

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JONES of North Carolina, Mr. KIND, subsequently determined by the Speaker, in spect to the effective treatment of and ac- Mr. CANNON, Mr. RYAN of Wisconsin, each case for consideration of such provi- cess to care for individuals with psoriasis Mr. LARSON of Connecticut, Mr. sions as fall within the jurisdiction of the and psoriatic arthritis, and for other pur- CAPUANO, Mr. BAKER, Ms. BALDWIN, committee concerned. poses; to the Committee on Energy and Com- Mr. KENNEDY of Minnesota, Mr. By Mr. JINDAL: merce. ALLEN, Mr. RUPPERSBERGER, Mr. H.R. 4748. A bill to require the Secretary of By Mr. SHIMKUS (for himself and Mr. MOORE of Kansas, Mr. WILSON of the Army to submit to Congress a report GALLEGLY): South Carolina, Mr. SWEENEY, Mr. identifying activities for hurricane and flood H. Res. 673. A resolution expressing support BISHOP of New York, and Mr. protection in Lake Pontchartrain, Lou- for the efforts of the people of the Republic MICHAUD): isiana, and for other purposes; to the Com- of Belarus to establish a full democracy, the H.R. 4740. A bill to extend the termination mittee on Transportation and Infrastruc- rule of law, and respect for human rights and date for the exemption of returning workers ture. urging the Government of Belarus to con- from the numerical limitations for tem- By Mr. MARKEY (for himself, Mrs. duct a free and fair presidential election on porary workers; to the Committee on the Ju- MALONEY, Mr. GEORGE MILLER of March 19, 2006; to the Committee on Inter- diciary. California, Mr. EMANUEL, Mr. INSLEE, national Relations. By Ms. ROS-LEHTINEN (for herself, Mr. WAXMAN, Mr. PALLONE, and Mr. By Mr. LEWIS of Kentucky: Mr. LANTOS, Mr. SAXTON, Mr. GRIJALVA): H. Res. 674. A resolution amending the WELLER, Mr. SCHIFF, Mr. ACKERMAN, H.R. 4749. A bill to suspend the application Rules of the House of Representatives to re- Mr. WOLF, Mr. BURTON of Indiana, of any provision of Federal law under which quire parity and transparency in the ear- Mr. ISSA, Mr. MCCOTTER, Mrs. persons are relieved from the requirement to mark process; to the Committee on Rules, MUSGRAVE, and Mr. SIMMONS): pay royalties for production of oil or natural and in addition to the Committee on Govern- H.R. 4741. A bill to develop and deploy gas from Federal lands in periods of high oil ment Reform, for a period to be subsequently technologies to defeat Internet jamming; to and natural gas prices, to require the Sec- determined by the Speaker, in each case for the Committee on International Relations. retary to seek to renegotiate existing oil and consideration of such provisions as fall with- By Mr. SMITH of Texas (for himself, natural gas leases to similarly limit suspen- in the jurisdiction of the committee con- Mr. BERMAN, and Mr. GOODLATTE): sion of royalty obligations under such leases, cerned. H.R. 4742. A bill to amend title 35, United and for other purposes; to the Committee on By Mr. PALLONE (for himself, Mr. States Code, to allow the Director of the Resources. TANCREDO, Mr. PAYNE, Mr. LANTOS, Patent and Trademark Office to waive statu- By Mr. OSBORNE (for himself and Mr. Mr. BURTON of Indiana, Ms. LEE, Mr. tory provisions governing patents and trade- MORAN of Kansas): MCCOTTER, Ms. WATSON, Ms. ROS- marks in certain emergencies; to the Com- H.R. 4750. A bill to authorize the Secretary LEHTINEN, Mr. DELAHUNT, Mr. ROHR- mittee on the Judiciary. of the Interior to conduct a study to deter- ABACHER, Ms. MCCOLLUM of Min- By Mr. FORD: mine the feasibility of implementing a water nesota, Mr. WILSON of South Caro- H.R. 4743. A bill to amend part D of title supply and conservation project to improve lina, Mr. ACKERMAN, Mr. BROWN of XVIII of the Social Security Act to require water supply reliability, increase the capac- Ohio, Mr. ENGEL, Mr. CAPUANO, Mr. prescription drug plans to provide enrollee ity of water storage, and improve water WOLF, Mr. HASTINGS of Florida, Ms. notice of less expensive part D covered drugs management efficiency in the Republican JACKSON-LEE of Texas, Mr. RANGEL, that may be substituted for dispensed drugs; River Basin between Harlan County Lake in Mr. HOLT, Mr. WYNN, Ms. EDDIE BER- to the Committee on Energy and Commerce, Nebraska and Milford Lake in Kansas; to the NICE JOHNSON of Texas, Mr. DOYLE, and in addition to the Committee on Ways Committee on Resources. Mr. ISRAEL, Mr. HONDA, Mr. MCNUL- and Means, for a period to be subsequently By Mr. PITTS (for himself, Mrs. JONES TY, Mr. EVANS, Mrs. MALONEY, Mr. AL determined by the Speaker, in each case for of Ohio, Mr. ENGLISH of Pennsyl- GREEN of Texas, Mr. MCGOVERN, Ms. consideration of such provisions as fall with- vania, Mr. MCINTYRE, Ms. HART, and SCHAKOWSKY, Ms. BORDALLO, Mr. in the jurisdiction of the committee con- Ms. HARMAN): NADLER, Mr. DOGGETT, and Ms. LINDA cerned. H.R. 4751. A bill to establish and provide T. SA´ NCHEZ of California): By Mr. SULLIVAN (for himself, Mr. for the treatment of Individual Development H. Res. 675. A resolution expressing dis- LUCAS, Mr. COLE of Oklahoma, Mr. Accounts, and for other purposes; to the approval of the Arab League’s decision to BOREN, and Mr. ISTOOK): Committee on Ways and Means. hold its 2006 summit in Khartoum, Sudan H.R. 4744. A bill to designate the Depart- By Mr. RANGEL: ment of Veterans Affairs Outpatient Clinic H.R. 4752. A bill to provide for the common and calling on the Arab League, the Govern- in Tulsa, Oklahoma, as the Ernest Childers defense by requiring all persons in the ment of Sudan, the Sudanese rebels, and the Department of Veterans Affairs Outpatient United States, including women, between the world community to do all they can to end Clinic; to the Committee on Veterans’ Af- ages of 18 and 42 to perform a period of mili- acts of genocide in the Darfur region of fairs. tary service or a period of civilian service in Sudan; to the Committee on International By Mr. LEWIS of California: furtherance of the national defense and Relations. H.R. 4745. A bill making supplemental ap- homeland security, and for other purposes; By Mr. POE: propriations for fiscal year 2006 for the Small to the Committee on Armed Services. H. Res. 676. A resolution amending rule Business Administration’s disaster loans By Mr. STARK: XXV of the Rules of the House of Represent- program, and for other purposes; to the Com- H.R. 4753. A bill to establish a congres- atives to prohibit Members, officers, and em- mittee on Appropriations, and in addition to sional commemorative medal for organ do- ployees of the House from accepting gifts the Committee on the Budget, for a period to nors and their families; to the Committee on from registered lobbyists; to the Committee be subsequently determined by the Speaker, Financial Services, and in addition to the on Rules. in each case for consideration of such provi- Committee on Energy and Commerce, for a By Mr. ROGERS of Alabama (for him- sions as fall within the jurisdiction of the period to be subsequently determined by the self, Mr. WATT, Mr. OWENS, Mr. BUR- committee concerned. Speaker, in each case for consideration of GESS, Mr. HASTINGS of Florida, Mr. By Mr. BRADLEY of New Hampshire such provisions as fall within the jurisdic- PAYNE, Mr. ETHERIDGE, Mr. MCCAUL (for himself, Mr. MCCOTTER, Mr. tion of the committee concerned. of Texas, Mr. BISHOP of Georgia, Mr. STRICKLAND, Ms. CORRINE BROWN of By Mr. DOOLITTLE (for himself, Mr. DAVIS of Alabama, Mr. RAHALL, Mr. Florida, Mr. SIMMONS, Ms. HERSETH, WHITFIELD, Mr. MCCOTTER, Mr. WIL- MARSHALL, Mr. MCGOVERN, Ms. NOR- Mr. FILNER, Mr. KUHL of New York, SON of South Carolina, Mr. BROWN of TON, Mr. LEWIS of Georgia, Ms. CAR- Mr. WEXLER, Mr. MCDERMOTT, and South Carolina, Mr. TIAHRT, Mr. SON, Ms. KILPATRICK of Michigan, Mr. Ms. JACKSON-LEE of Texas): HERGER, Mr. GERLACH, Mr. AKIN, Mr. MCINTYRE, Mr. JONES of North Caro- H.R. 4746. A bill to amend title 38, United BONILLA, Mr. BUYER, Mr. SWEENEY, lina, Mr. BUTTERFIELD, Ms. LEE, Mr. States Code, to establish a financial assist- Ms. HARRIS, Mr. SCHWARZ of Michi- TOWNS, Mr. RANGEL, Mr. MEEKS of ance program to facilitate the provision of gan, Mr. KENNEDY of Minnesota, and New York, Mr. WYNN, Mr. MCHENRY, supportive services for very low-income vet- Mr. FORBES): Ms. MILLENDER-MCDONALD, Mr. PRICE eran families in permanent housing, and for H. Con. Res. 339. Concurrent resolution ex- of North Carolina, Mr. HAYES, Mr. other purposes; to the Committee on Vet- pressing the sense of Congress in support of MILLER of North Carolina, Mrs. erans’ Affairs. military recruiting; to the Committee on MYRICK, Mr. COBLE, Ms. FOXX, Mrs. By Mrs. CAPPS (for herself and Mrs. Armed Services, and in addition to the Com- CHRISTENSEN, Mr. CLEAVER, Mr. JEF- CUBIN): mittee on Education and the Workforce, for FERSON, Mr. FOLEY, Mr. FATTAH, Mr. H.R. 4747. A bill to amend the Public a period to be subsequently determined by SCOTT of Virginia, Mr. TAYLOR of Health Service Act to improve the preven- the Speaker, in each case for consideration North Carolina, and Mr. ENGLISH of tion, diagnosis, and treatment of heart dis- of such provisions as fall within the jurisdic- Pennsylvania): ease, stroke, and other cardiovascular dis- tion of the committee concerned. H. Res. 677. A resolution recognizing the eases in women; to the Committee on Energy By Mr. GERLACH: creation of the NASCAR-Historically Black and Commerce, and in addition to the Com- H. Con. Res. 340. Concurrent resolution ex- Colleges and Universities Consortium; to the mittee on Ways and Means, for a period to be pressing the sense of the Congress with re- Committee on Education and the Workforce.

VerDate Aug 31 2005 06:02 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00047 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H14FE6.REC H14FE6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE H274 CONGRESSIONAL RECORD — HOUSE February 14, 2006 ADDITIONAL SPONSORS PITTS, Mr. BARROW, Mrs. CHRISSTENSEN, Mr. H.R. 4186: Ms. HOOLEY and Mrs. MILLER of FALEOMAVAEGA, Mr. KIRK, Mr. JEFFERSON, Michigan. Under clause 7 of rule XII, sponsors Mr. REYES, Mr. AL GREEN of Texas, Mr. COO- H.R. 4197: Mr. STARK. were added to public bills and resolu- PER, Mr. GUTIERREZ, Mr. DOGGETT, Ms. H.R. 4222: Mr. CARDOZA and Mr. MICHAUD. tions as follows: MOORE of Wisconsin, Mr. AKIN, Mr. EMANUEL, H.R. 4236: Mr. CONAWAY. H.R. 198: Ms. SCHAKOWSKY and Ms. Ms. LINDA T. SA´ NCHEZ of California, Ms. H.R. 4265: Mr. MOLLOHAN, Ms. ROS- WASSERMAN SCHULTZ. MCCOLLUM of Minnesota, Mr. MCINTYRE, Mr. LEHTINEN, Mr. FERGUSON, Mr. WELDON of H.R. 202: Mr. CLAY and Mr. WEXLER. OTTER, Mr. LANGEVIN, Mr. CARDIN, Mr. POM- Pennsylvania, Mr. MURPHY, Mr. OBERSTAR, H.R. 282: Mr. BLUNT. EROY, Mr. MELANCON, Mr. ENGEL, Mr. ROTH- and Ms. KAPTUR. H.R. 333: Mr. BISHOP of Georgia. MAN, Mr. GALLEGLY, Mr. RAMSTAD, Mr. BOU- H.R. 4298: Mr. SANDERS and Mr. DOGGETT. H.R. 398: Mr. BERMAN. CHER, Mrs. NAPOLITANO, Mr. BRADY of Penn- H.R. 4304: Mr. CASE. H.R. 408: Mr. LANTOS. sylvania, Mr. KING of Iowa, Mr. PORTER, Mr. H.R. 4351: Mr. FARR. H.R. 414: Mr. MEEHAN, Mr. BARTLETT of OBERSTAR, Mr. FOLEY, Mrs. NORTHUP, Ms. H.R. 4366: Mr. BILIRAKIS. Maryland, and Mr. CANNON. HOOLEY, Mr. PALLONE, Mr. BAIRD, Mr. H.R. 4409: Mr. SIMMONS, Ms. SCHWARTZ of H.R. 415: Mr. SHUSTER. EHLERS, Mr. SCHWARZ of Michigan, Mr. Pennsylvania, Ms. WASSERMAN SCHULTZ, Mr. H.R. 503: Mr. CASE. DELAHUNT, Mr. CLEAVER, Mrs. DAVIS of Cali- BROWN of South Carolina, Mr. MCCOTTER, H.R. 550: Mr. DAVIS of Tennessee. fornia, Mr. MARKEY, Mr. BOUSTANY, Mr. Mr. SHUSTER, Mr. FITZPATRICK of Pennsyl- H.R. 591: Mr. KUHL of New York, Mr. EVANS, and Mr. DEFAZIO. vania, and Mr. PLATTS. GOODE, Mr. MCCOTTER, Mr. ENGLISH of Penn- H.R. 2386: Ms. HARRIS, Mr. GILCHREST, and H.R. 4411: Mr. WILSON of South Carolina sylvania, and Mr. PETERSON of Minnesota. Mrs. NORTHUP. and Mr. UPTON. ARSHALL CHAKOWSKY H.R. 601: Ms. BERKLEY. H.R. 2390: Mr. NADLER, Ms. MILLENDER- H.R. 4424: Mr. M , Ms. S , RIJALVA H.R. 602: Mr. LATOURETTE. MCDONALD, Ms. WATSON, Mr. FARR, Mrs. and Mr. G . H.R. 4448: Ms. ZOE LOFGREN of California H.R. 676: Ms. KAPTUR and Mr. REYES. TAUSCHER, Mr. BLUMENAUER, Ms. BALDWIN, and Ms. SCHAKOWSKY. H.R. 698: Mr. PENCE. and Mr. MORAN of Virginia. H.R. 4460: Mr. PALLONE and Mr. WILSON of H.R. 752: Mr. RAHALL, Mr. FRANK of Massa- H.R. 2553: Mr. ISRAEL. South Carolina. chusetts, Mr. CLAY, and Mr. MCGOVERN. H.R. 2658: Mr. MARCHANT and Mr. BACHUS. H.R. 4463: Mr. BERMAN. H.R. 764: Mr. ENGLISH of Pennsylvania. H.R. 2716: Mr. MICHAUD. H.R. 4465: Mr. FATTAH, Mr. WU, Ms. ZOE H.R. 791: Mr. MICHAUD. H.R. 2717: Mr. WELDON of Pennsylvania. LOFGREN of California, Ms. SCHAKOWSKY, Mr. H.R. 815: Mr. MILLER of Florida and Mr. H.R. 2793: Mr. SABO and Mr. SULLIVAN. E AZIO AYNE ASTOR RADY ENGLISH of Pennsylvania. H.R. 2803: Ms. PRYCE of Ohio. D F , Mr. P , Mr. P , Mr. B H.R. 819: Mr. PASTOR and Mr. KLINE. H.R. 2872: Mr. PASTOR, Mr. CONAWAY, Mr. of Pennsylvania, Ms. SCHWARTZ of Pennsyl- H.R. 839: Mr. MEEHAN and Mr. ENGEL. MCCRERY, Ms. WATERS, Mr. KIRK, Mr. vania, Mr. WAXMAN, and Mr. MICHAUD. H.R. 4472: Mr. REYNOLDS, Mr. WHITFIELD, H.R. 898: Mr. CLAY, Mr. DAVIS of Florida, MARCHANT, Mr. GRAVES, Mr. NUSSLE, and Mr. and Mr. CRAMER. Mr. BROWN of Ohio, Mr. BOEHLERT, Mr. NAD- REICHERT. H.R. 4479: Ms. PELOSI, Mr. NEAL of Massa- LER, Mr. DAVIS of Tennessee, Mr. STARK, Mr. H.R. 2874: Mr. MELANCON and Mr. HINCHEY. UMMINGS DINGELL, and Mr. PALLONE. H.R. 3061: Mr. GRAVES. chusetts, and Mr. C . H.R. 4494: Mr. BARROW. H.R. 939: Mr. ROTHMAN. H.R. 3111: Mr. RYAN of Wisconsin. H.R. 4511: Mr. SAM JOHNSON of Texas. H.R. 941: Mr. HOSTETTLER. H.R. 3145: Mr. LOBIONDO, Ms. HOOLEY, Mr. H.R. 4520: Mr. FATTAH. H.R. 963: Mr. CALVERT and Mr. JEFFERSON. BISHOP of Georgia, Mr. WYNN, Mr. MCINTYRE, H.R. 4526: Mr. BROWN of South Carolina. H.R. 968: Mr. WAMP. and Ms. ZOE LOFGREN of California. H.R. 4542: Mr. CHANDLER, Mr. BERMAN, Mr. H.R. 986: Mr. ROGERS of Kentucky and Mr. H.R. 3157: Mr. CONYERS. CAPUANO, and Ms. LORETTA SANCHEZ of Cali- CUELLAR. H.R. 3186: Mr. CROWLEY and Mr. PAUL. fornia. H.R. 1002: Mr. ORTIZ, Mr. SCHIFF, Mr. H.R. 3255: Mr. WELDON of Pennsylvania. H.R. 4547: Mr. MURTHA, Mr. MCHENRY, Mrs. HOYER, and Mr. WOLF. H.R. 3307: Mr. BARROW and Mr. CASE. SCHMIDT, Mr. LARSEN of Washington, and Mr. H.R. 1053: Ms. CORRINE BROWN of Florida, H.R. 3334: Mr. LARSON of Connecticut, Mr. BISHOP of Georgia. Mr. MORAN of Virginia, and Mr. GUTIERREZ. AL GREEN of Texas, and Mr. DAVIS of Ten- H.R. 4574: Ms. BERKLEY. H.R. 1105: Mr. KILDEE. nessee. H.R. 4625: Mr. POMBO, Mr. NORWOOD, and H.R. 1108: Mr. STARK, Mr. HONDA, Mrs. H.R. 3337: Mrs. TAUSCHER. Mr. WELDON of Pennsylvania. CAPPS, Mr. OWENS, Mr. BARROW, Mr. LEWIS of H.R. 3352: Mr. POE and Mr. DOGGETT. H.R. 4655: Mr. MILLER of Florida, Mr. Georgia, Mr. CUMMINGS, and Mr. GERLACH. H.R. 3401: Mr. RANGEL. CAPUANO, and Mrs. BIGGERT. H.R. 1188: Mr. OLVER, Ms. NORTON, and Mr. H.R. 3442: Mr. WEXLER. H.R. 4662: Mr. FOSSELLA. H.R. 3476: Mr. PETERSON of Minnesota, Mr. HONDA. H.R. 4663: Mr. SIMMONS. PLATTS, and Mr. HOLDEN. H.R. 1217: Mr. HOLDEN. H.R. 4665: Mr. CUELLAR. H.R. 3478: Mrs. DRAKE, Mr. SPRATT, Mr. H.R. 1227: Mr. ENGLISH of Pennsylvania. H.R. 4666: Mr. GOODE, Mr. DOYLE, and Mr. CASE, Mr. ISRAEL, Mr. AKIN, Mr. COSTELLO, H.R. 1259: Ms. ROS-LEHTINEN, Mr. PITTS, CASE. Mr. LAHOOD, Mr. NORWOOD, Mr. YOUNG of Mr. FATTAH, Ms. KILPATRICK of Michigan, H.R. 4668: Mr. PRICE of Georgia. Florida, Mrs. BONO, and Mr. SOUDER. and Mr. HOSTETTLER. H.R. 4672: Mr. BERRY, Mr. WYNN, Mr. H.R. 1333: Ms. DELAURO. H.R. 3502: Ms. SCHAKOWSKY. CUELLAR, Mr. MCHUGH, and Mr. COSTA. H.R. 1345: Mr. MCCRERY, Ms. PRYCE of H.R. 3579: Mr. ALLEN. H.R. 4675: Ms. WOOLSEY. Ohio, and Mr. SHAYS. H.R. 3681: Mr. DAVIS of Illinois. H.R. 4676: Mr. PAYNE. H.R. 1357: Mr. DOOLITTLE. H.R. 3753: Mr. WILSON of South Carolina H.R. 4679: Mr. ENGLISH of Pennsylvania. H.R. 1426: Mr. JEFFERSON. and Mr. BACHUS. H.R. 4681: Ms. HART, Mrs. KELLY, Mr. KEN- H.R. 1431: Mr. OWENS, Mr. WAXMAN, Mr. H.R. 3778: Mr. KILDEE, Mrs. JOHNSON of NEDY of Minnesota, Mr. SULLIVAN, Mr. FILNER, and Mr. WYNN. Connecticut, Mr. MORAN of Virginia, Mrs. HENSARLING, Mr. FITZPATRICK of Pennsyl- H.R. 1494: Mr. PUTNAM. CAPPS, and Mr. FILNER. vania, Mr. SOUDER, Mr. FOSSELLA, Mr. MARIO H.R. 1578: Mr. DOGGETT and Mr. SHUSTER. H.R. 3861: Mr. TIERNEY, Ms. MCKINNEY, Mr. DIAZ-BALART of Florida, Mr. WESTMORELAND, H.R. 1707: Mr. WEXLER, Mr. ROTHMAN, and CLAY, Mr. DAVIS of Illinois, and Mr. CROW- Mr. DAVIS of Florida, Mr. RUPPERSBERGER, Mr. LYNCH. LEY. Mr. BLUNT, and Mrs. MALONEY. H.R. 1708: Mr. MURPHY and Mr. LEWIS of H.R. 3883: Mr. KINGSTON, Mr. COBLE, Ms. H.R. 4685: Mr. SCHIFF and Mr. CLAY. Georgia. FOXX, Mr. CALVERT, Ms. HART, Mr. ISTOOK, H.R. 4704: Mr. FRANK of Massachusetts, Mr. H.R. 1816: Mrs. NORTHUP. and Mr. COLE of Oklahoma. DAVIS of Tennessee, Mr. KILDEE, Mr. H.R. 1849: Mr. MEEKS of New York. H.R. 3888: Ms. DEGETTE and Mr. LYNCH. GRIJALVA, Mrs. DAVIS of California, and Mrs. H.R. 1898: Mr. STUPAK. H.R. 3917: Mr. CUMMINGS. MCCARTHY. H.R. 1951: Mr. OWENS. H.R. 3933: Mr. EVANS. H.R. 4705: Mr. HINOJOSA. H.R. 2048: Mr. NEAL of Massachusetts, and H.R. 3972: Mr. MCCOTTER. H.R. 4708: Ms. MATSUI and Mr. MCDERMOTT. Mr. SKELTON. H.R. 4005: Mr. GERLACH and Mr. CARDIN. H.R. 4722: Ms. SOLIS. H.R. 2051: Ms. WOOLSEY. H.R. 4030: Ms. SCHWARTZ of Pennsylvania. H.J. Res. 67: Mr. BRADLEY of New Hamp- H.R. 2052: Mr. WYNN. H.R. 4033: Mr. MCGOVERN and Mr. BARROW. shire, and Ms. HARRIS. H.R. 2063: Mrs. NORTHUP. H.R. 4035: Mrs. MUSGRAVE. H. Con. Res. 68: Mr. FATTAH and Mrs. H.R. 2072: Mr. FATTAH and Ms. MCKINNEY. H.R. 4063: Mr. DEFAZIO. MCCARTHY. H.R. 2101: Mr. BISHOP of Georgia. H.R. 4075: Mr. MCCOTTER. H. Con. Res. 210: Mr. CHANDLER. H.R. 2129: Mr. STRICKLAND. H.R. 4140: Mr. BRADY of Pennsylvania, Mr. H. Con. Res. 231: Mr. WICKER. H.R. 2177: Mrs. WILSON of New Mexico. BROWN of Ohio, Mr. GRIJALVA, Ms. EDDIE H. Con. Res. 235: Mr. BOOZMAN. H.R. 2233: Mr. KILDEE. BERNICE JOHNSON of Texas, Mrs. LOWEY, and H. Con. Res. 277: Mr. MCINTYRE, Mrs. H.R. 2237: Mr. FRANK of Massachusetts. Mr. SCOTT of Virginia. MCCARTHY, and Mr. BOEHLERT. H.R. 2345: Ms. WOOLSEY and Mr. FATTAH. H.R. 4141: Mr. BRADY of Pennsylvania, Mr. H. Con. Res. 298: Mr. WAXMAN. H.R. 2369: Mr. POMBO, Ms. ROS-LEHTINEN, GRIJALVA, Ms. EDDIE BERNICE JOHNSON of H. Con. Res. 299: Ms. LEE and Mr. Mrs. BONO, Mr. PENCE, Mr. CHANDLER, Mr. Texas, and Mr. SCOTT of Virginia. MCDERMOTT.

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H. Con. Res. 302: Mr. MCCOTTER, Mr. ALEX- H. Res. 357: Mr. SCHIFF. fornia, Ms. WATSON, and Mr. GEORGE MILLER ANDER, and Mr. CANTOR. H. Res. 521: Mr. MEEKS of New York and of California. H. Con. Res. 306: Mr. BROWN of South Caro- Mr. GENE GREEN of Texas. lina and Mr. GENE GREEN of Texas. H. Res. 526: Mr. VAN HOLLEN. H. Res. 647: Mr. MILLER of Florida and Mr. H. Con. Res. 318: Mr. MEEHAN and Mr. H. Res. 544: Mr. GRIJALVA and Mr. POM- GUTKNECHT. FARR. EROY. H. Res. 658: Mr. DOGGETT, Mr. MCDERMOTT, H. Con. Res. 322: Mrs. JO ANN DAVIS of Vir- H. Res. 556: Mr. HENSARLING. Mr. HONDA, Mr. LANTOS, Mr. GEORGE MILLER ginia. H. Res. 561: Mr. EVANS. H. Con. Res. 335: Mr. MORAN of Virginia, H. Res. 578: Mr. NORWOOD, Mr. MORAN of of California, Ms. MCCOLLUM of Minnesota, Mr. LEWIS of Georgia, Mr. SCHIFF, Mr. CON- Virginia, Mr. GALLEGLY, Mr. MCINTYRE, Mr. Mr. MORAN of Virginia, Mr. WEXLER, and Mr. YERS, Mr. BERMAN, Mrs. JONES of Ohio, Mr. OBERSTAR, Mr. AKIN, and Mr. LEACH. ENGLISH of Pennsylvania. FILNER, Mr. SMITH of Washington, Mr. KIL- H. Res. 628: Mr. ENGLISH of Pennsylvania. H. Res. 665: Mr. WAMP, Mr. COOPER, Mr. DEE, Mrs. MALONEY, Ms. LEE, and Ms. MOORE H. Res. 635: Ms. VELA´ ZQUEZ and Ms. MOORE ETHERIDGE, Mrs. CHRISTENSEN, Mr. DOYLE, of Wisconsin. of Wisconsin. Ms. KILPATRICK of Michigan, Mr. TANNER, H. Res. 116: Mrs. MALONEY and Mr. ACKER- H. Res. 641: Ms. BALDWIN. MAN. H. Res. 643: Mr. ACKERMAN, Mr. KUCINICH, Mr. HOLT, Ms. SCHWARTZ of Pennsylvania, H. Res. 323: Mr. ROGERS of Michigan, Mr. Mr. SERRANO, Mrs. MALONEY, Mr. CLEAVER, Mr. MCINTYRE, Mr. SMITH of Washington, Mr. LANGEVIN, and Mr. RAMSTAD. Mr. WATT, Mr. CAPUANO, Mrs. DAVIS of Cali- MCGOVERN, Mrs. MALONEY, and Mr. GORDON.

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Vol. 152 WASHINGTON, TUESDAY, FEBRUARY 14, 2006 No. 18 Senate The Senate met at 9:45 a.m. and was appoint the Honorable DAVID VITTER, a Sen- The ACTING PRESIDENT pro tem- called to order by the Honorable DAVID ator from the State of Louisiana, to perform pore. Without objection, so ordered. VITTER, a Senator from the State of the duties of the Chair. Mr. FRIST. Mr. President, when we Louisiana. TED STEVENS, return to the asbestos bill later today, President pro tempore. we have the motion to waive pending, PRAYER Mr. VITTER thereupon assumed the and we will be talking to the two man- The Chaplain, Dr. Barry C. Black, of- chair as Acting President pro tempore. agers this morning to determine the fered the following prayer: f best time for that vote to occur today. Let us pray. Having said that, we are going to have Lord of all, who rules the raging of RECOGNITION OF THE MAJORITY LEADER a very busy day with votes, and Sen- the sea, we celebrate the works of Your ators should not stray far from the love and grace; early in the morning, The ACTING PRESIDENT pro tem- Chamber in order to not miss any votes our songs rise to You. Thank You for pore. The majority leader is recog- so that we can accomplish all that we giving us answers to life’s most dif- nized. have set out to do over the course of ficult questions. Thank You also for f the day. undeserved blessings we enjoy each We are ready to start with the mo- day. SCHEDULE tions and voting. Chairman GRASSLEY Bless the Members of our legislative Mr. FRIST. Mr. President, this morn- is on his way. We can have the Senator branch. Give them opportunities to be ing we will start a series of votes on from Massachusetts start, if he is Your voice of hope in a world often motions to instruct conferees with re- ready. Senator GRASSLEY should be filled with despair. Strengthen their spect to the tax relief bill. There could here within the next couple of minutes. families and the members of their be up to as many as 16 votes on these staffs. Give them the talents they need motions and, therefore, votes will be f to serve You in our time. Bring us all kept to 10 minutes in length. I hope RESERVATION OF LEADER TIME to the purposes which You have de- there will be fewer votes, and we will The ACTING PRESIDENT pro tem- signed for us. Give us Your peace that be working this morning to see if there pore. Under the previous order, the can keep our hearts and minds from is any way to lessen that number. Vot- leadership time is reserved. fear. ing will begin momentarily, and thus f We pray in Your Holy Name. Amen. Members should stay close to the f Chamber today during these stacked TAX RELIEF EXTENSION PLEDGE OF ALLEGIANCE votes so that we can move expedi- RECONCILIATION ACT OF 2005 tiously. We will be recessing for lunch The Honorable DAVID VITTER led the The ACTING PRESIDENT pro tem- Pledge of Allegiance, as follows: to accommodate the party luncheons, pore. Under the previous order, the and we will lock in the time for that I pledge allegiance to the Flag of the Senate will resume consideration of United States of America, and to the Repub- recess later in the morning. I would ex- the House message to accompany H.R. lic for which it stands, one nation under God, pect that we would continue the voting 4297, which the clerk will report. indivisible, with liberty and justice for all. sequence around 2:15 after the lunch- The assistant legislative clerk read f eons today. as follows: Following the appointment of con- APPOINTMENT OF ACTING Resolved that the House disagree to the ferees to the tax relief bill, we will be amendment of the Senate to the bill (H.R. PRESIDENT PRO TEMPORE returning to the asbestos bill. As Mem- 4297) entitled ‘‘An Act to provide for rec- The PRESIDING OFFICER. The bers know, we filed cloture on the as- onciliation pursuant to section 201(b) of the clerk will please read a communication bestos bill last night and that vote is concurrent resolution on the budget for fis- to the Senate from the President pro scheduled to occur Wednesday morn- cal year 2006.’’ tempore (Mr. STEVENS). ing. Pending: The assistant legislative clerk read FILING OF AMENDMENTS Kennedy motion to instruct conferees to the following letter: Under the rule, first-degree amend- reject the extension of the capital gains and U.S. SENATE, ments need to be filed by 1 p.m. today dividends rate reduction contained in section 203 of the bill as passed by the House of Rep- PRESIDENT PRO TEMPORE, to be considered in order postcloture. Washington, DC, February 14, 2006. resentatives. To the Senate: We will likely be in recess at that time, Reed motion to instruct conferees to insist Under the provisions of rule I, paragraph 3, so I ask unanimous consent that the that the final conference report include of the Standing Rules of the Senate, I hereby deadline be until 2:30 today. funding to strengthen America’s military

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor.

S1135

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But those are of the bill as passed by the House of Rep- the Jobs and Growth Tax Relief Reconcili- resentatives. ation Act of 2003. the first 8, with a total of 16 motions to Wyden motion to instruct conferees to in- Lautenberg motion to instruct conferees to instruct, which I understand will all be sist that the final conference report include insist that the final conference report does in order this morning. a provision that repeals accelerated depre- not increase the national debt of the United I yield the floor. ciation for geologic and geophysical costs for States. MOTIONS TO INSTRUCT CONFEREES oil and gas exploration by the five major oil Schumer motion to instruct conferees to The ACTING PRESIDENT pro tem- companies. insist that the final conference report in- pore. The Senator from Iowa is recog- Obama motion to instruct conferees to in- clude the Senate-passed provision to extend nized. sist that the final conference report include the above-the-line deduction for tuition and Mr. GRASSLEY. Mr. President, tax relief for the most vulnerable members fees through December 31, 2009 (section 103), would it be in order to call up my mo- of our society, including the low-income vic- before it includes the House-passed extension tims of Hurricane Katrina and children in of lower tax rates on capital gains and divi- tion on the AMT and the capital gains families that are too poor to benefit fully dends (section 203), given budget constraints, dividend? from the refundable child tax credit. noting that a conference report which main- The ACTING PRESIDENT pro tem- Hatch motion to instruct conferees to in- tains the tuition deduction will provide pore. The Senator’s motion is now sist that the final conference report include needed tax relief to more than 4,000,000 pending. a permanent extension of the credit for in- American families each year that are strug- Mr. GRASSLEY. I have 1 minute? creasing research activities (based on section gling to keep pace with rising tuition costs. The ACTING PRESIDENT pro tem- 108 of the amendment passed by the Senate), The ACTING PRESIDENT pro tem- pore. Two minutes. in order to improve American competitive- pore. The Senator from Massachusetts Mr. GRASSLEY. Mr. President, 16 ness. million additional American families DeWine motion to instruct conferees to in- is recognized. sist that the final conference report accept Mr. KENNEDY. Mr. President, I un- could find themselves subject to the al- the veterans’ mortgage bonds expansion pro- derstand that in the order that has ternative minimum tax if we do not act visions contained in section 303 of the bill as been printed, the first instruction is by quickly. Failure to pass a minimum passed by the House of Representatives with the Senator from Iowa, Mr. GRASSLEY, level of alternative minimum tax re- such revisions as are necessary to provide which includes both the alternative lief, as was provided in the Senate- veterans in all 50 States with access to passed reconciliation bill, is not an op- lower-rate mortgages. minimum tax relief and the tax cuts for dividends and capital gains. I un- tion. In fact, I support full AMT repeal. Reid (for Menendez) motion to instruct Some of my colleagues are creating a conferees to insist that the final conference derstand that he has 2 minutes to report include the Senate passed ‘‘hold- speak in favor of that and there are 2 false choice when they suggest that in harmless’’ relief from the individual alter- minutes in opposition to it. I, at this order to provide AMT relief we need to native minimum tax (AMT) in 2006, and does time, will use part of the 2 minutes in remove incentives that encourage eco- not include the extension of lower tax rates opposition. nomic growth. We can design a tax on capital gains and dividends. I see the ranking member and I package which will include dividends, Stabenow motion to instruct conferees to capital gains, AMT, and a 1-year exten- insist that the final conference report in- would suggest a brief quorum call so he may speak in opposition to the Grass- sion for all expiring tax relief, all with- clude a permanent extension of the credit for in that $70 billion limit. I encourage increasing research activities, and to reject ley motion. I suggest the absence of a my colleagues to vote for this motion any extension of the tax rate for capital quorum. which provides relief for alternative gains and dividends which does not expire The ACTING PRESIDENT pro tem- minimum tax and capital gains and until 2009. pore. The clerk will call the roll. dividends as well. Grassley motion to instruct conferees to The assistant journal clerk proceeded insist that the final conference report in- I yield. clude the ‘‘hold-harmless’’ relief from the in- to call the roll. The ACTING PRESIDENT pro tem- dividual alternative minimum tax in 2006 Mr. BAUCUS. Mr. President, I ask pore. The Senator from Montana. (sections 106 and 107 of the amendment unanimous consent that the order for Mr. BAUCUS. Mr. President, I urge passed by the Senate) to protect middle class the quorum call be dispensed with. my colleagues to oppose this motion. families and includes an extension of lower The ACTING PRESIDENT pro tem- Why is that? Essentially, we must tax rates on capital gains and dividends pore. Without objection, it is so or- choose between extending protection (based on section 203 of the bill passed by the dered. from the AMT tax increase this year House of Representatives) to protect tax cuts Mr. BAUCUS. Mr. President, I would for middle class families. for 17 million working families or ex- Grassley (for Lott) motion to instruct con- like to give a list of pending motions, tending $50 billion in investor tax ferees to insist that the final conference re- and I ask unanimous consent that the breaks which do not expire until 3 port include the repeal of the individual al- time not be charged against the 2 min- years from now, after the next Presi- ternative minimum tax (based on sections utes allocated to explaining the mo- dential election. That is the choice. 106 and 107 of the amendment passed by the tion. This motion says you can have it all. Senate). The ACTING PRESIDENT pro tem- This motion says there is no deficit Grassley (for Hutchison) motion to in- pore. Without objection, it is so or- problem. This motion says: Don’t struct conferees to insist that the final con- ference report include a permanent exten- dered. worry, be happy. Our Senate bill, sup- sion of the election to deduct State and local Mr. BAUCUS. Mr. President, the list ported by 66 Senators, chose to protect general sales taxes (based on section 105 of of motions to instruct that we have millions of working families from the the amendment passed by the Senate). thus far are in this order: No. 1 is the 2006 AMT hit rather than extending Grassley (for Santorum) motion to in- Grassley motion regarding AMT asking 2009 tax breaks for investors. The truth struct conferees to insist that the final con- for both AMT relief and tax cuts. No. 2 is, we cannot have it all. There is a def- ference report include a permanent exten- is the Kennedy capital gains motion, icit problem. Something will have to sion of the above-the-line deduction for tui- which is in opposition to the former. give, and I wish we could realistically tion and fees (based on section 103 of the amendment passed by the Senate). No. 3 is the Lott motion on AMT. No. hope the House will be willing to agree Grassley motion to instruct conferees to 4 is Senator MENENDEZ’s AMT capital to a significant amount of offsets, insist that the final conference report ensure gains. No. 5 is Senator SANTORUM with crackdowns on tax shelters, so we that in 2009 and 2010, the international com- respect to tuition deduction. No. 6 is could do more on this tax bill, but I am petitiveness of the United States in attract- Senator SCHUMER with respect to tui- not optimistic. I have deep experience ing capital investment, and therefore job tion deduction. No. 7 is Senator with the House, and they will not do creation, is not weakened further by a higher HATCH’s motion with respect to R&D. so, and that is forcing us to choose. combined corporate and individual income tax rate on corporate and capital income as No. 8 is Senator STABENOW’s motion That is why we must choose. Is it the a result of a higher dividend tax rate. with respect to R&D and capital gains. R&D credit? Is it incentives for busi- Grassley (for Talent/Snowe/Lincoln) mo- That is where we are at this point. nesses to hire the hard-to-employ? Is it tion to instruct conferees to insist that the That is eight. There are a total of 16 on a true AMT hold-harmless?

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1137 Those are our choices. The House Lincoln Reed Snowe porate managers which is critical to made their choice. They chose not to Menendez Reid Stabenow protecting investors and workers. Busi- Mikulski Rockefeller Voinovich protect 17 million families threatened Murray Salazar Warner ness investors need certainty. by the AMT. Some items can wait until Obama Sarbanes Wyden We need to act now. For these rea- 2007, 2008, or even 2009. Capital gains Pryor Schumer sons, I encourage my colleagues to vote can wait. AMT cannot wait. Protection The motion was agreed to. against this motion. from that tax increase—that is, the THE ACTING PRESIDENT pro tem- I point out something that directly AMT—which expires now, must be ex- pore. The Senator from Massachusetts. involves the State of Massachusetts. tended this year, not capital gains. Mr. KENNEDY. Mr. President, as I We have heard the same old charge, That AMT protection expired in De- understand, the pending instruction is that capital gains and dividends are cember, and 17 million working fami- mine. only for rich folks. These charts behind lies are waiting to hear our choice. The ACTING PRESIDENT pro tem- me assert the opposite. According to I urge my colleagues not to embark pore. The Senator is correct. There is 4 Internal Revenue Service statistics on on this dangerous course. I urge them minutes evenly divided. income for the State of Massachusetts, to reject this motion. We have to Mr. KENNEDY. Mr. President, this there are 589,000 individuals and fami- choose. We cannot have it all. I urge Senate is not going to have a clearer lies who benefit from the reduced tax my colleagues to be responsible. opportunity in terms of the Nation’s on dividends, and 212,000 individuals Mr. GRASSLEY. Mr. President, if I priorities than on this next vote. Under and families benefit from the reduced have 10 seconds—— the current proposal before the Senate, tax on capital gains. There are not that The ACTING PRESIDENT pro tem- it provides the dividends and capital many millionaires in that State re- pore. The Senator from Iowa has 1 gains of $50 billion. The President’s gardless of how rich that State is. Not minute remaining. proposal which was submitted is $50 all of these folks are superrich. They Mr. GRASSLEY. I am only going to billion in Medicare and Medicaid budg- are people like the average American use 10 seconds. I hope my friend from et cuts. benefiting from this. I don’t know why Montana will agree with me on this, We have the choice of $50 billion for anyone wants to persecute a few mil- that we do have differences on this one the further tax reductions for the lionaires and punish everyone else. part, the capital gains part of this bill, wealthiest individuals or we are going The ACTING PRESIDENT pro tem- but I think we agree on everything else to stand up on Medicare and Medicaid. pore. The time has expired. in the bill. I hope people listening to If we care about the culture of life, we Mr. KENNEDY. I ask for the yeas and will vote for this amendment since Senator BAUCUS and I maybe differing nays. on this one point will remember that one-third of all the children born are The ACTING PRESIDENT pro tem- on most everything that goes on in our born under Medicaid and receive well- pore. Is there a sufficient second? committee, we agree. I do not want baby treatment and mothers are treat- There is a sufficient second. them to get a distorted view of our ed. The question is on agreeing to the friendship and our working together on If Members care about our seniors Kennedy motion to instruct conferees. The clerk will call the roll. this legislation. and disabled and those mentally chal- lenged and disabled, they will vote for The assistant legislative clerk called I yield back my time, and I ask for this motion because it protects Medi- the roll. the yeas and nays. care. The result was announced—yeas 47, The ACTING PRESIDENT pro tem- If Members are talking about chil- nays 53, as follows: pore. Is there a sufficient second? dren, nursing homes, and the frail and [Rollcall Vote No. 17 Leg.] There is a sufficient second. elderly, Members will vote for this mo- YEAS—47 The question is on agreeing to the tion because it will preserve Medicaid. Grassley motion to instruct conferees. Akaka Feingold Mikulski If Members care about research and Baucus Feinstein Murray The clerk will call the roll. NIH and believe this is the life science Bayh Harkin Nelson (FL) The assistant journal clerk called the century, Members will not tolerate the Biden Inouye Obama roll. Bingaman Jeffords Pryor extraordinary cuts in the NIH budget Boxer Johnson The ACTING PRESIDENT pro tem- Reed in cancer and Alzheimer’s research, the Byrd Kennedy Reid pore. Are there any other Senators in whole range of research, and will vote Cantwell Kerry Rockefeller Carper Kohl the Chamber desiring to vote? Salazar for this motion. Chafee Landrieu Sarbanes The result was announced—yeas 53, If Members care about fairness for Clinton Lautenberg Schumer nays 47, as follows: Conrad Leahy America’s families, vote for this mo- Snowe [Rollcall Vote No. 16 Leg.] tion over giveaways to the very Dayton Levin Dodd Lieberman Stabenow YEAS—53 wealthy. Dorgan Lincoln Warner Wyden Alexander DeWine McCain It is as plain and simple as that. I Durbin Menendez Allard Dole McConnell hope our colleagues will support it. NAYS—53 Allen Domenici Murkowski The ACTING PRESIDENT pro tem- Alexander DeWine Bennett Ensign Nelson (FL) pore. The Senator from Iowa is recog- McCain Bond Enzi Nelson (NE) Allard Dole McConnell nized. Allen Domenici Brownback Frist Roberts Murkowski Bennett Ensign Bunning Graham Santorum Mr. GRASSLEY. Mr. President, this Nelson (NE) Bond Enzi Burns Grassley Sessions vote has nothing to do with Medicare Roberts Burr Gregg Brownback Frist Shelby Santorum Chambliss Hagel or Medicaid. This motion by Senator Bunning Graham Smith Sessions Coburn Hatch KENNEDY calls for a tax increase in 2008 Burns Grassley Shelby Specter Burr Gregg Cochran Hutchison on millions of Americans. Critics of Smith Stevens Chambliss Hagel Coleman Inhofe Specter Sununu lower rates always want to persecute Coburn Hatch Collins Isakson Stevens Cornyn Kyl Talent millionaires and at the same time pun- Cochran Hutchison Sununu Craig Lott Thomas ish everyone else trying to save money. Coleman Inhofe Talent Crapo Lugar Thune The lower rates on capital gains have Collins Isakson DeMint Martinez Vitter Cornyn Kyl Thomas benefited low- and middle-income fami- Craig Lott Thune NAYS—47 lies in a very meaningful way and re- Crapo Lugar Vitter Akaka Clinton Jeffords duced the tax burden on citizens. They DeMint Martinez Voinovich Baucus Conrad Johnson have contributed to our economic re- The motion was rejected. Bayh Dayton Kennedy Biden Dodd Kerry covery and continue to help our econ- The ACTING PRESIDENT pro tem- Bingaman Dorgan Kohl omy grow. They have made capital in- pore. The minority leader is recog- Boxer Durbin Landrieu vestment in America more competitive nized. Byrd Feingold Lautenberg so we can be competitive with global Mr. REID. Mr. President, I have spo- Cantwell Feinstein Leahy Carper Harkin Levin competition. They have helped impose ken to the majority leader. In fact, he Chafee Inouye Lieberman transparency and discipline on cor- and I spoke last night and again today.

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00003 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1138 CONGRESSIONAL RECORD — SENATE February 14, 2006 I am going to, in a minute or so, sug- very difficult situation. It is estimated Durbin Landrieu Obama Feingold Lautenberg Pryor gest the absence of a quorum. this year alone that the Army will Feinstein Leahy Reed I would ask Democratic Senators to need about $13.7 billion simply to re- Harkin Levin Reid stay around the floor. We are going to pair the equipment, not to buy new Inouye Lieberman Rockefeller see, if working with our manager and equipment, that has been used in com- Jeffords Lincoln Salazar Johnson Menendez Sarbanes Senator CONRAD and others, we can bat. The Marine Corps will need ap- Kennedy Mikulski Schumer maybe jointly agree on not having as proximately $7.5 billion. Kerry Murray Stabenow many votes as are scheduled now. My instruction would simply say al- Kohl Nelson (FL) Wyden So I would note the absence of a locate $50 billion and pay for it by tak- NAYS—55 quorum. ing the capital gains and dividend pref- Alexander Dole Murkowski The ACTING PRESIDENT pro tem- erences being awarded in this tax rec- Allard Domenici Nelson (NE) pore. The clerk will call the roll. onciliation bill. I think it makes a Allen Ensign Roberts Bennett Enzi The assistant journal clerk proceeded great deal more sense to give our Santorum Bond Frist Sessions to call the roll. troops the best equipment we can have Brownback Graham Shelby Mr. FRIST. Mr. President, I ask rather than to give upper income Bunning Grassley Smith unanimous consent that the order for Burns Gregg Snowe Americans another tax break. Burr Hagel Specter the quorum call be rescinded. It is very simple: Are we going to Chambliss Hatch Stevens The ACTING PRESIDENT pro tem- Coburn Hutchison give our troops a dividend in good func- Sununu Cochran Inhofe pore. Without objection, it is so or- tioning equipment or are we going to Talent dered. Coleman Isakson give the dividend to the wealthiest Collins Kyl Thomas Mr. FRIST. Mr. President, I now ask Americans? Cornyn Lott Thune unanimous consent that we proceed to The ACTING PRESIDENT pro tem- Craig Lugar Vitter immediate votes on the DeWine mo- Crapo Martinez Voinovich pore. The Senator’s time has expired. DeMint McCain Warner tion, the Wyden motion, and the Tal- The Senator from Iowa is recognized. DeWine McConnell ent-Snowe-Lincoln motion—I would Mr. GRASSLEY. Mr. President, I ap- state for the record that these motions The motion was rejected. preciate Senator REED’s attention to The PRESIDING OFFICER. There will be voice votes—provided further the issue of funding for our military. are now 2 minutes equally divided on that following those votes, the Senate Proper funding for those serving our the Hutchison motion to instruct con- proceed to votes in relation to the Reed country should not be controversial. ferees. motion, the Hutchison motion, and the The method of providing this funding The Senator from Texas. Lautenberg motion—and, again, we ex- should not be made into a controver- Mrs. HUTCHISON. Mr. President, I pect rollcall votes on these three; fi- sial issue, and that is where the con- rise to speak in favor of the motion. I nally, I ask unanimous consent that troversy is. certainly hope our colleagues will vote following those votes the remaining My colleague suggests that in order to instruct conferees on a basic issue of motions be withdrawn and the Chair be to provide funding for our military, we fairness. authorized to appoint conferees. need to eliminate a tax benefit that Today, there are eight States that The ACTING PRESIDENT pro tem- doesn’t even arise until 2009. Look at have sales taxes but not a State in- pore. Is there objection? how ridiculous this motion is. How can come tax. Until 2 years ago, they were Without objection, it is so ordered. you provide funds that are so badly disadvantaged by not being able to de- Mr. FRIST. Mr. President, what we needed today to ensure that we meet duct their sales taxes from their Fed- have just done is greatly simplify the the operational needs of our coura- eral income taxes, whereas an income- course of the votes over the course of geous military service personnel when tax State would allow their payers to the morning. We will have three roll- it won’t be funded until 2009? I remind do that. call votes following the voice votes. I you that last night all of us voted for It is very important in this country appreciate both sides of the aisle work- my amendment to support the oper- that we have tax equity. In fact, the ing together, condensing 14 motions ational needs of our military that pro- motion to instruct would give equity down to 3 rollcall votes. vides the same benefits but doesn’t to all. It creates jobs because there is The ACTING PRESIDENT pro tem- raise taxes. more economic activity when we treat pore. The question is on agreeing to I urge my colleagues to vote against all people in our States the same and the motion of the Senator from Ohio, the Reed motion. In addition, I remind allow them to deduct the State taxes Mr. DEWINE. Those in favor say aye. my friend from Rhode Island that there they pay. It is a matter of fairness. Those opposed say no. are 79,000 families in his State that The States of Washington, Nevada, The motion was agreed to. benefit from not having the tax on Wyoming, South Dakota, Texas, Alas- The ACTING PRESIDENT pro tem- dividends at 15 percent. ka, Florida, and Tennessee all have pore. The question is now on agreeing The ACTING PRESIDENT pro tem- this situation in which their taxpayers to the motion of the Senator from Or- pore. The question is on agreeing to will be disadvantaged if we do not in- egon, Mr. WYDEN. Those in favor say the motion of the Senator from Rhode struct the conferees. aye. Those opposed say no. Island. I urge my colleagues to support this The motion was agreed to. Mr. REED. Mr. President, I ask for motion. The ACTING PRESIDENT pro tem- the yeas and nays. The PRESIDING OFFICER. The Sen- pore. The question is now on agreeing The ACTING PRESIDENT pro tem- ator from Montana. to the motion of the Senator from Mis- pore. Is there a sufficient second? Mr. BAUCUS. Mr. President, I yield souri, Mr. TALENT. Those in favor say There is a sufficient second. the 1 minute on our side to the Senator aye. Those opposed say no. The clerk will call the roll. from New Jersey. The motion was agreed to. The PRESIDING OFFICER. The Sen- The assistant journal clerk called the The ACTING PRESIDENT pro tem- ator from New Jersey is recognized for roll. pore. The question is now on agreeing 1 minute. The PRESIDING OFFICER (Mr. to the motion of the Senator from Mr. LAUTENBERG. Mr. President, ISAKSON). Are there any other Senators Rhode Island, Mr. REED. There are 2 the motion clearly says that taxpayers in the Chamber desiring to vote? minutes, evenly divided, of debate on would have to choose between deduct- The result was announced—yeas 45, this motion. ing their sales tax costs or their in- nays 55, as follows: The Senator from Rhode Island is come tax costs. If a taxpayer lives in a recognized. [Rollcall Vote No. 18 Leg.] State that chooses to have both a sales Mr. REED. Mr. President, my motion YEAS—45 tax and an income tax, why should to instruct conferees is simple. Our Akaka Boxer Clinton they be penalized? This motion is not Army and Marine Corps have been en- Baucus Byrd Conrad fair for the people in my State or many Bayh Cantwell Dayton gaged in combat operations for several Biden Carper Dodd States such as mine that have both years now. Their equipment is in a Bingaman Chafee Dorgan sales and income taxes.

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00004 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1139 The Federal Government should not Whether you voted for or against the Sununu Thomas Vitter be micromanaging State tax systems. bill, we should all agree that we should Talent Thune Warner If we have the expense, we ought to not stick future generations with the The motion was rejected. allow the deduction. If we are going to bill. f allow the deduction of State sales That is what my motion says. It is RECESS taxes, we should allow it no matter very simple. where the taxpayers live. On Valentines Day, vote against in- Mr. GRASSLEY. Mr. President, I ask I hope we will oppose this manage- creasing the national debt. unanimous consent the Senate stand in ment from the Federal Government of Mr. GRASSLEY. Mr. President, I recess until 2:15 today for weekly pol- how a State ought to conduct its tax would like to inform the Senator from icy luncheons. system. New Jersey that his motion would in- There being no objection, the Senate, I yield the floor and urge opposition crease taxes on people in New Jersey at 12:23 p.m., recessed until 2:15 p.m. to the motion. through dividends of $838,000 and cap- and reassembled when called to order The PRESIDING OFFICER. The ital gains of $270,000. by the Presiding Officer (Mr. question is on agreeing to the VOINOVICH). If we don’t do something about AMT, Hutchison motion to instruct con- 600,000 people from New Jersey suffer; f ferees. Mrs. HUTCHISON. I ask for the yeas if we don’t have the college tuition tax TAX RELIEF EXTENSION REC- and nays. deduction, 121,000; and teacher deduc- ONCILIATION ACT OF 2005—Con- The PRESIDING OFFICER. Is there a tion, 127,000. tinued sufficient second? I don’t know how anybody would The PRESIDING OFFICER. The Sen- There appears to be a sufficient sec- want to increase taxes on people in ator from Pennsylvania. ond. their States by that amount of money. Mr. SPECTER. Mr. President, the The clerk will call the roll. If you take the approach of the Senator pending business is the motion to The assistant legislative clerk called from New Jersey and have to offset all waive the budget point of order, is it the roll. of these things, there are not enough not? The result was announced—yeas 75, offsets to go around to take care of the The PRESIDING OFFICER. H.R. 4297 nays 25, as follows: 100 ideas we have of where taxes ought is still the pending question. [Rollcall Vote No. 19 Leg.] to be reduced. Under the previous order, the Chair YEAS—75 We now have taxes of 18 percent com- appoints Mr. GRASSLEY, Mr. KYL, and Akaka Dole McCain ing into the country into the Gross Na- Mr. BAUCUS conferees on the part of Alexander Domenici McConnell tional Product for a 60-year high. Allard Durbin Murkowski the Senate. Allen Ensign Murray How high do taxes have to be to sat- Mr. ROCKEFELLER. Mr. President I Bayh Enzi Nelson (FL) isfy the Senator from New Jersey that am very pleased that the Senate is tak- Bennett Feinstein Nelson (NE) taxes are high enough? Boxer Frist Obama ing the necessary steps today to move Brownback Graham Pryor The PRESIDING OFFICER. The Sen- forward with a reasonable tax relief Bunning Grassley Reid ator’s time has expired. package. In the coming days, conferees Burns Hagel Roberts The question is on agreeing to the from the Senate and the House will Burr Hatch Salazar motion to instruct. Cantwell Hutchison Santorum work together to craft a final bill for Chafee Inhofe Schumer Mr. LAUTENBERG. Mr. President, I the President to sign. Yesterday and Chambliss Inouye Sessions ask for the yeas and nays. today, I supported a number of motions Clinton Isakson Shelby The PRESIDING OFFICER. Is there a Coburn Johnson Smith offered by my colleagues to instruct Cochran Kerry Snowe sufficient second? our conferees to maintain the Senate’s Coleman Kohl Specter There is a sufficient second. The position because, indeed, the Senate Collins Kyl Stevens clerk will call the roll. package enjoys bipartisan support. Cornyn Levin Talent Craig Lieberman Thomas The legislative clerk called the roll. I am very proud that the Senate leg- Crapo Lincoln Thune The result was announced—yeas 46, islation also includes a bipartisan Dayton Lott Vitter nays 54, as follows: amendment that I worked hard to de- DeMint Lugar Voinovich DeWine Martinez Warner [Rollcall Vote No. 20 Leg.] velop that will stimulate investment in YEAS—46 mine safety. Our amendment has two NAYS—25 key components. The first provision al- Baucus Feingold Mikulski Akaka Feingold Murray Bayh Feinstein lows accelerated depreciation to en- Biden Gregg Reed Nelson (FL) Biden Harkin Bingaman Harkin Rockefeller Nelson (NE) courage mines to invest in new tele- Bingaman Inouye Bond Jeffords Sarbanes Obama communications technology, tracking Boxer Jeffords Byrd Kennedy Stabenow Pryor devices, improved breathing apparatus, Carper Landrieu Byrd Johnson Reed Sununu Cantwell Kennedy and other critical safety equipment. Conrad Lautenberg Wyden Reid Dodd Leahy Carper Kerry Rockefeller The second major initiative provides Chafee Kohl Dorgan Menendez Salazar incentives for the creation of addi- Clinton Lautenberg Sarbanes The motion was agreed to. Coburn Leahy tional mine safety rescue teams. While Schumer The PRESIDING OFFICER. The Sen- Conrad Levin a miner is trapped, he or she should not Stabenow ator from New Jersey. Dayton Lieberman have to wait for hours for a rescue Dodd Lincoln Voinovich Mr. LAUTENBERG. Mr. President, Dorgan Menendez Wyden team to arrive from far away. the motion is simple. It says the con- Durbin Mikulski West Virginia, Appalachia, and our ferees need to come back with a final entire Nation have been stunned and NAYS—54 bill that does not increase the national saddened by the recent mine tragedies debt. So if you vote against this, you Alexander DeMint Lott in West Virginia, Kentucky, and Utah Allard DeWine Lugar are saying it is OK to increase the na- Allen Dole Martinez that took the lives of 18 miners and tional debt. Lord knows what we have Baucus Domenici McCain devastated families, friends, and com- by way of debt. It is drowning us and Bennett Ensign McConnell munities. I have visited our West Vir- Bond Enzi will be paid for by our children and our Murkowski ginia communities and spoken with Brownback Frist Roberts grandchildren. It is reckless to charge Bunning Graham Santorum families and officials. In the memory of Burns Grassley $50 billion on our Nation’s credit card Sessions these brave miners, we must take bold Burr Gregg Shelby when we have another option. We can Chambliss Hagel and swift action to promote mine safe- Smith pay for these tax cuts by closing the Cochran Hatch ty. We owe it to coal miners who con- egregious tax loopholes such as the $6 Coleman Hutchison Snowe tinue to work in mines to do all we can Specter billion for oil companies with record Collins Inhofe to improve their safety. Cornyn Isakson Stevens earnings—on the front page of the Craig Kyl Coal mining is hard, dangerous work. paper this morning. Crapo Landrieu But coal is the fuel for more than 50

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1140 CONGRESSIONAL RECORD — SENATE February 14, 2006 percent of the electricity that powers this bill that enjoy my support, includ- tant improvements. First and fore- our country and enables economic ing an extension of the new markets most, the mine safety tax incentives growth. The miners who produce the tax credit, the creation of incentives were added to this bill. As a represent- coal deserve the best technology to for additional charitable giving, and ative of so many coal miners and their make our mines as safe as possible. But tax breaks for our dedicated teachers families, I will do all I can to advance we must acknowledge that there will who spend their own money improving measures that encourage additional in- be future accidents in our coal mines the educational experiences of their vestment in mine safety. I was also en- because of the nature of the industry, students. couraged that during consideration in and so we must also invest in addi- Having said that I support many of early February, the Senate passed an tional mine rescue teams. the provisions of this bill, I would like amendment offered by Senator MENEN- This tax package presented an imme- to take just a few moments to discuss DEZ, by a vote of 73 to 24. That amend- diate opportunity to promote mine some reservations I have with the proc- ment expresses the sense of the Senate safety. I deeply appreciate the work ess under which Congress is consid- that relief from the alternative min- and support of West Virginia’s senior ering it. This bill is a tax reconcili- imum tax should take precedence over Senator, ROBERT C. BYRD. We are a ation bill, meaning that it will enjoy any additional tax cuts for capital team when it comes to mine safety and some procedural protections in the gains and dividend income. coal issues, and we are working to- Senate—the costs to the Treasury need I hope to work with my colleagues as gether on additional legislation that not be offset and the final package can differences between the House and Sen- will impose strict new safety standards pass the Senate with a mere 51 votes. ate bills are resolved. I hope that we I fear that the reconciliation proce- on the mining industry. can work together to enact reasonable I am very pleased that the mine safe- dure being used here has put us on a tax relief that enjoys broad bipartisan ty tax incentives have been included in very dangerous course. As this legisla- support. And I will fight to be sure that this legislation. Indeed, I believe that tion is conferenced with the House of the tax incentives for investment in Representatives, the reasonable, bipar- the bill before the Senate includes mine safety are maintained in the final tisan tax relief that we have passed many important tax provisions that we legislation. may be replaced with partisan prior- ought to enact without delay. Most of f ities that do not serve the best inter- these tax cuts are longstanding, broad- ests of average Americans. The House- FAIRNESS IN ASBESTOS INJURY ly supported policies that were unfor- passed bill does not provide any relief RESOLUTION ACT OF 2005—Resumed tunately allowed to expire at the end of from the alternative minimum tax but The PRESIDING OFFICER. The last year. instead extends the capital gains and Among the tax provisions that the clerk will report the pending business. dividend tax cuts beyond 2008. In my Senate is acting to extend here is relief The assistant legislative clerk read own State of West Virginia, fewer than from the alternate minimum tax for as follows: 17 percent of taxpayers reported any upper middle class families who are A bill (S. 852) to create a fair and efficient taxable dividend income, and fewer system to resolve claims of victims for bod- about to be hit with a tax only ever in- than 11 percent of taxpayers had any ily injury caused by asbestos exposure, and tended for the very wealthy. This bill taxable capital gains. Indeed, nation- for other purposes. would extend AMT relief for 2006 in wide, more than half of the benefits of Pending: order to be sure that families are able these investor tax breaks goes to peo- Frist (for Specter/Leahy) amendment No. to benefit from the income tax cuts the ple with more than $1 million in in- 2746, in the nature of a substitute. Congress has enacted since 2001. I sup- come. The Senate must insist that Specter modified amendment No. 2747 (to port this relief, and indeed, I believe AMT relief now is a higher priority amendment No. 2746), to provide guidelines in determining which defendant participants Congress needs to act quickly to ad- than investor tax breaks 3 years down dress fundamental AMT reform. I have may receive inequity adjustments the Ad- the road. ministrator shall give preference. cosponsored legislation to permanently The impact on the deficit, facilitated Kyl amendment No. 2754 (to amendment repeal the individual AMT because this by the reconciliation process, is also a No. 2746), to reduce the impact of the trust so-called millionaires’ tax is no longer serious concern. I supported a sub- fund on smaller companies and to expand serving its original purpose. As part of stitute amendment offered by my col- hardship adjustments. overall tax reform that is fiscally re- league, Senator CONRAD, which would The PRESIDING OFFICER. The mo- sponsible, Congress ought to perma- provide all of the same tax relief but tion to waive the point of order is the nently eliminate the specter of this would have taken the fiscally respon- pending question. parallel tax system. For now, I am sible step of offsetting the losses to the The Senator from Pennsylvania. pleased to at least be able to support a Treasury. The cost of this bill could be Mr. SPECTER. Mr. President, the bill that will protect families for this covered by closing tax loopholes and point of order which has been raised year. insisting that corporations and individ- has no substance on the merits. The This bill also extends important tax uals are not able to avoid taxes by point of order has no substance on the incentives for the business community. gaming the system, including in some merits because there is no Federal For example, the bill extends the re- cases by simply abandoning their U.S. funding involved in the legislation search and development tax credit to citizenship. I was disappointed that my which creates a $140 billion trust fund. provide more than $20 billion to compa- colleagues did not support this fiscally All of the money comes from private nies that do innovative research to responsible course at a time when the sources, from manufacturers, and from keep America at the forefront of the Treasury Secretary has informed us the insurance companies under the competitive world economy. I have co- that the Congress already needs to in- agreement reached by Senator FRIST, sponsored legislation that would make crease the national debt limit to $9 the Republican majority leader, and the R&D tax credit permanent, but trillion. then-Senator Daschle, the Democratic again, I am pleased to be able to at These reservations, and indeed the minority leader, establishing this trust least support this bill which provides a declared intention of some of my col- fund. 2-year extension of this valuable tax leagues on the other side of the aisle to The Congressional Budget Office filed incentive. add investor tax breaks during con- a letter yesterday, February 13, on the I have also supported legislation to ference, prevented me from supporting substitute which was offered. Instead make permanent the welfare-to-work this legislation when the Senate first of having a managers’ package of some tax credits. The legislation before us considered it last November. As I said 47 amendments, which could have been today improves and extends these cred- at the time, and I would still prefer, considered one by one, they were added its for 2 years. I know that many com- the reasonable tax relief contained in to the original text of S. 852 as a sub- panies in West Virginia have used these this Senate bill could be passed using stitute bill. credits to provide work opportunities the normal legislative process, gar- The Congressional Budget Office let- to individuals who previously have nering well more than 60 votes. ter made the essential conclusion that been marginalized in our economy. However, earlier this month, I sup- the substitute is budget neutral. The There are many other provisions in ported this Senate bill after two impor- key paragraph reads as follows:

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1141 CBO also estimates that, so long as the my colleagues in their offices, talked would be deficit-neutral over the life of the fund’s administrator does not borrow to many more on the floor when we fund. amounts beyond the means of the fund to have had a break in between votes. The line in red is the conclusion, repay (as the bill would require), the govern- When I have talked to people and ex- which is the most emphatic: ‘‘Thus, ment’s general funds would not be used to pay asbestos claims. Furthermore, section plained to them the intricacies of this CBO concludes that the legislation 406 of the bill states that the legislation complex legislation, the responses have would be deficit-neutral over the life of would not obligate the federal government to been good. There is a proposal for a the fund.’’ pay any part of an award under the bill if the medical criteria bill. I think that is not So what you have here is a private amounts in the asbestos fund are inadequate. a preferable solution because it would trust fund taking care of people who This is the crucial line: not provide a fund for the employees of have asbestos-related injuries, where Thus, CBO concludes that the legislation companies which have gone bankrupt, the companies have gone bankrupt and would be deficit-neutral over the life of the nor would it provide funds for the vet- they have no one to collect from, where fund. erans who have sustained their dam- you would be stopping the tremendous So as a matter of the merits, the ages at shipyards or in military serv- clogging of the Federal courts, where point of order has no substance because ice. But that is something which could the Supreme Court has asked Congress there is no Federal funding involved. be debated and voted upon before clo- to act, and where you have a situation The argument which was made last ture is invoked, or perhaps a germane where people can collect for their dam- Thursday by the Senator from Nevada, amendment can be drafted which would ages. Mr. ENSIGN, was that some future Con- survive cloture, which is scheduled for I note the Senator from California is gress might obligate the Government tomorrow. on the floor of the Senate. So at this to pay money. The obvious response to But, in any event, it is my expecta- time, I yield the floor. that, which I made on Thursday and re- tion that we ought to be ready to vote The PRESIDING OFFICER. The Sen- peat now, is that this Congress should some time this afternoon. So I urge ator from California is recognized. not try to bind what some future Con- any of my colleagues who have any- Mrs. FEINSTEIN. Mr. President, I gress may do. It is difficult enough for thing to say about this budget point of thank the chairman of the committee. us to decide what is the appropriate order to come to the floor so we may I note that the ranking member is here course of action in the year 2006, with- debate the issue and be prepared to also. If he would like to go ahead of out trying to look ahead, as this budg- vote. me, I have no problem with that. et point of order contemplates, for a 10- In the absence of any Senator seek- Mr. LEAHY. Mr. President, the Sen- year period, from the year 2016 to the ing recognition, I suggest the absence ator from California has been a strong year 2055, on payments in excess of of a quorum. and consistent voice on this issue. I some $5 billion over a 10-year period. The PRESIDING OFFICER. The will follow her. Thank you. The underlying merits of the bill, I clerk will call the roll. Mrs. FEINSTEIN. I thank the Sen- think, have been established. You have The assistant legislative clerk pro- ator very much for that. a chaotic situation today where litiga- ceeded to call the roll. Mr. President, let me give you at tion costs on asbestos claims eat up 58 Mr. SPECTER. Mr. President, I ask least my bottom line of this bill. Up to cents on the dollar, so that claimants unanimous consent that the order for 2004, 74 American companies had been only get 42 cents on the dollar. This the quorum call be rescinded. bankrupted. Salaries have been dimin- has resulted in some 77 companies The PRESIDING OFFICER. Without ished for a large number of people. going bankrupt. Some $70 billion has objection, it is so ordered. More people are thrown into the unem- been expended. The courts are overbur- Mr. SPECTER. Mr. President, the ployment market as a product of bank- dened, leading the Supreme Court of distinguished Senator from California ruptcy. Victims receive less than 50 the United States to ask the Congress, is preparing to take the floor. percent on the settlement dollar. Those on several occasions, to deal with this I wish to present a chart. I am not are facts. It is deeply disturbing to me. problem. big on charts, but I think this is one I deeply believe that a no-fault fund, This legislation has been drafted and which has some special significance; which has a medical board that evalu- analyzed and amended and modified, I and that is, there were some projec- ates the medical condition of an indi- think, more than any bill in the his- tions which were made by the Senator vidual and automatically grants that tory of legislative action. I know that from North Dakota, Mr. CONRAD, last individual an amount of money, is a is a grandiose statement. I made it last week about asbestos claims going up, much sounder way to go. week, and I repeat it today. I would which is simply not factual. The fact Now, clearly, this is complicated leg- challenge anybody who knows of any is—as this chart shows—these are find- islation and there are difficult and bill which is as complicated to step for- ings from the Congressional Budget Of- technical issues involved. But a lot of ward. fice, which show the projection of as- misinformation has plagued the asbes- Shortly after the bill was reported bestos claims in a sharp decline. This is tos debate, and it continues to be re- out of the Judiciary Committee in July based upon the fact that the latency peated. I cannot say we have a perfect of 2003, I asked a distinguished senior period for asbestos to produce damage bill, but we have tried, and tried very Federal judge, Edward R. Becker, who is some 30 years. They are going to be hard. This has not been a take-it-or- had been chief judge of the Third Cir- on a sharp decline, which is one of the leave-it bill. The chairman and the cuit, to undertake the mediation of the reasons the Congressional Budget Of- ranking member have been open to great many complex issues involved. fice has estimated that $140 billion is suggestions. They have been open to For 2 days in August of 2003, Judge more than sufficient. requests for amendments. There will be Becker and I met with about 20 so- The other chart I want to put up is a substitute amendment that further called stakeholders in his chambers in the key paragraph which comes from refines the bill. Philadelphia, the stakeholders being the Congressional Budget Office report. Today, I want to discuss the concerns the manufacturers, the insurers, the This is the critical paragraph in which raised by those who oppose the bill and trial lawyers, and the AFL–CIO, to try CBO concludes definitively that the provide what I hope are important to work through the problems. FAIR Act is deficit neutral: points. Since that time, there have been CBO also estimates that, so long as the On Thursday, one Senator argued: some 36 meetings held in my office. We fund’s administrator does not borrow It really comes down to a very basic ques- reported a bill out of the Judiciary amounts beyond the means of the fund to tion—the question of whether or not this bill Committee last May 26. We have ac- repay (as the bill would require), the govern- has been carefully crafted, whether or not it cepted a great many amendments and ment’s general funds would not be used to contains enough money in the trust fund to pay asbestos claims. Furthermore, section are here today to move ahead with the compensate the hundreds of thousands of as- 406 of the bill states that the legislation bestos victims that will have to count on it. amendment process. would not obligate the federal government to I have urged my colleagues and have pay any part of an award under the bill if the Let me address the beginning of that talked to most of the Senators on an amounts in the asbestos fund are inadequate. statement, Mr. President. I cannot individual basis, and visited many of Thus, CBO concludes that the legislation think of any other bill where more

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1142 CONGRESSIONAL RECORD — SENATE February 14, 2006 time, more effort, and more man-hours panies would be required to make up funded. The money collected for the have been committed to thoroughly any potential shortfall. Yet the bill on trust comes from businesses and insur- understanding and trying to address all the floor of the Senate today is over $30 ance companies. It does not come from of the complex issues, and even to re- billion above S. 1125 and S. 2290 in the U.S. Treasury. While some oppo- spond to the hypothetical issues that guaranteed contributions, with no con- nents acknowledge that the Federal might potentially come up. The draft- tingency funding. Government must play a role in the ers of this legislation have worked for In addition, when the CBO was asked trust fund for it to be classified as an literally thousands of hours through to evaluate how much money the fund entitlement, they inaccurately con- the process of dozens of meetings over would need to pay claims, it projected clude that if an individual satisfies the the past six years. The Judiciary Com- that ‘‘the proposed fund would be pre- medical criteria and filing deadlines, mittee has held at least 8 hearings on sented with valid claims worth $120 bil- then he or she is entitled to compensa- the asbestos bill—4 just in the past lion to $150 billion.’’ This is the CBO tion from the Federal Government. year—and has heard testimony from 57 language: This is not true. witnesses. We have met with experts CBO expects that the value of valid claims Although the program will be housed from all sides who currently evaluate likely to be submitted to the fund over the in the Department of Labor, the bill asbestos claims and make statistical next 50 years could be between $120 billion ensures that all expenses, including ad- projections for companies, for victims, and $150 billion, not including possible fi- ministrative expenses, are paid by the and the courts. We met with doctors, nancing (debt service costs) costs and admin- moneys collected from businesses and istrative expenses. victims, corporate CEOs, and general insurers. In addition, as an extra pro- counsels. We met with trial lawyers, Again, $140 billion is well within the tection, it is expressly stated several insurance representatives, and individ- expected range. I think it is also im- times throughout the bill that the uals who work for asbestos bankruptcy portant to note that throughout the United States, or the U.S. Treasury, trusts. process, the medical criteria has been will in no way be required to satisfy I recognize that there are real con- tightened. I don’t believe anybody real- any claim or any costs if the amount in cerns from the opponents of the bill. ly speaks to this. One category of the trust is inadequate. Some people are unsatisfied with some claims—individuals who had lung can- This bill expressly provides: of the compromises that have been in- cer but no underlying asbestos mark- Repayment of moneys borrowed by the ad- corporated. But to assert that the leg- ers—has been eliminated from the bill. ministrator is limited solely to amounts available in the fund. islation was not carefully drafted is An Institute of Medicine study has one argument that has no basis in re- been added to the legislation that re- It also states that nothing in this act shall be construed to create any obliga- ality. quires an evaluation of the link be- Now for the second part of the argu- tween asbestos exposure and cancer, tion of funding from the U.S. Govern- ment. Again, it is important to remem- other than lung cancer. If that link ment, including any borrowing author- ber the history. Through this extensive cannot be established by the IOM, then ized. Read section 406(b). This is what consultation process, it became clear those claims will not receive com- the opponents say is not there. This is that there was an expected range of pensation. With these modifications, the face of the bill. It is there: claims that could come into the fund. the number of claims coming into the Nothing in this act shall be construed to create an obligation of funding from the From this, several different experts, in- trust will be substantially reduced. Finally, many protections have been United States Government . . . or obligate cluding Goldman Sachs, calculated the the United States Government to pay any amount of funding necessary to cover put in place that ensure that if, in the award or part of an award, if amounts in the the claims’ values that the bill pro- long run, the trust does not have suffi- fund are inadequate. vided and the number of claims that cient funding to cover all claims, indi- I don’t know what better guarantee the fund would pay based on the range viduals will be returned to the tort sys- there can be. If someone can suggest of claims. tem—the very solution opponents are one, I am sure the chairman and the We learned that the amount nec- advocating now. So if the trust were to ranking member, and certainly myself, essary to create a national trust was run out of money, the individual would would agree to add it to the bill. With between $90 billion and $155 billion. The go back to the tort system. these explicit statements throughout legislation now on the floor has fund- Some opponents also argue that pas- the bill, it is abundantly clear that this ing of $140 billion—clearly, on the high sage of this act would lead to federal- legislation will not be a burden on the side of the range of what the technical izing the responsibility for asbestos U.S. Treasury. experts expect. claims. We just heard this in the Demo- While Congress can obviously pass I also think it is important to re- cratic Caucus. It is this argument that any law it so chooses in the future, this member that previous versions of the is being used to make the case for a bill specifically states multiple times asbestos bill had significantly less budget point of order against the bill. in the text that taxpayers and the U.S. guaranteed contributions. S. 1125 pro- Some opponents have argued that the Treasury will in no way be required to vided $108 billion, with a $45 billion trust creates a new, albeit capped, enti- cover any shortfall, any administrative contingent fund. S. 2290 provided $104 tlement for claimants. However, this costs, any debt or interest costs, or any billion, with a $10 billion contingent statement is very misleading. costs incurred by the trust fund. There- fund. However, each of these bills as- According to the Congressional Re- fore, the only way taxpayers will be sumed that part of the money to pay search Service, entitlement programs called upon to subsidize this legislation claims would be collected through in- are a form of mandatory spending is if a future Congress chooses to pass, terest on savings. They did not meet which require the payment of benefits and the President signs, new legisla- the full funding through guaranteed to persons if specific criteria estab- tion which would create such an obli- contributions by businesses and insur- lished in the authorized law are met. If gation. This seems to me very unreal- ers as this bill does. That is a signifi- one only looked at the first part of the istic and highly unlikely. But even if it cant difference. definition of entitlement, this concern were to come to pass, we should not de- The underlying assumption of the may be understood. However, CRS fur- feat this bill because of what some prior two bills was that the amount of ther states that entitlements are not other Congress and some other Presi- money being paid into the trust would subject to discretionary appropriation dent may or may not do at some time be more than sufficient to pay claims from Congress. Instead, they are sub- in the future. and, instead, there would be an excess ject to mandatory appropriations. En- Opponents also argue that the Fed- that the administrator could invest to titlement payments are legal obliga- eral Government’s liability is likely to help build the trust fund’s assets. So tions of the Federal Government, and arise through the debt service. They the amount of money being paid into beneficiaries can sue to compel full argue that the administrator could the fund was much less than $108 bil- payment. This is not the case here. borrow beyond the fund’s ability to lion and $104 billion. In addition, nei- Let me state that again. This is not repay the Treasury. ther of those bills contained provisions the case here. The trust fund created I wish to respond to that. This state- to guarantee that the remaining com- by this legislation will be privately ment ignores the plain text of the bill.

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1143 The administrator’s ability to borrow for the amount of the delinquent payment clusions’’ and, at the same time, they funds from the Federal Financing Bank (including interest) upon all property and assert that CBO ‘‘likely understates’’ is only available for the first 5 years. rights to property, whether real or personal, the amount of money needed for the Section 221 states: belonging to such participant. trust. They argue that because CBO The administrator may borrow from the The participants of the fund are lia- uses qualifiers in their estimates such Federal Financing Bank in accordance with ble for the maintenance of the fund. I as acknowledging uncertainties in cal- section 6 of the Federal Financing Bank Act don’t see how it could be any clearer. culating the number of claims and the of 1973 as needed for performance of the Ad- The chairman of the committee who amounts to be paid, that one must ministrator’s duties under this Act for the is the author of this bill is in the draw the conclusion that CBO actually first 5 years. Chamber. If someone has an amend- believes the cost to be much higher So for the first 5 years, there can be ment and comes to the chairman and than that which is contained in their some borrowing. How is that borrowing says: Look, we think there is an over- paper. Yet time and time again, when limited and how is the loan paid back? sight here or there, it could be tight- CBO has been asked to review their es- This same section specifically limits ened up by doing X or Y, I am sure this timate and make changes based on new the borrowing capacity of the adminis- chairman will listen. But the language information, including the rather noto- trator so that he or she may not over- is very specific: If any participant fails rious Bates White study, they have de- extend the fund’s assets by borrowing to make any payment in the amount in clined to make changes. I was in that beyond what the trust fund will be able the schedule under this act or as pre- hearing; I heard the Director of CBO to repay. scribed by the administrator after a de- decline to make changes directly after Again, section 221 states: mand and 30 days to pony up to cure the Bates White testimony. With each The maximum amount that may be bor- the default, there shall be a lien for the request, CBO has refused to alter its es- rowed under this subsection at any given amount of the payment, including in- timate of the projected costs. This is time is the amount that, taking into account terest, upon all property and rights to what they said in a letter to Chairman all payment obligations related to all pre- property. That includes every big busi- SPECTER dated December 19, 2005: vious amounts borrowed in accordance with ness, every big insurance company, ev- this subsection and all committed obliga- The Bates White Report contains no new eryone that is in this fund, and it is information that would cause CBO to revise tions to the fund at the time of borrowing, only within that initial period that the can be repaid in full with interest in a timely its cost estimate. fashion from the available assets of the fund administrator can, in fact, borrow. So The size of the fund is based on the as of the time of borrowing, and all amounts how people come to the conclusion that strongest statistical data and economic expected to be paid by participants during the Government is on the hook for $40 models available. Now, that is the best the subsequent 10 years. billion I will never understand. If the that is out there. That is the state of So it requires the administrator to company refuses to pay or fails to pay, the art. Some can say it isn’t enough. look at what he or she could poten- the administrator must get a lien from I can’t counter that. All I know is that tially repay and what contributions are a court on the company’s assets in the committee sought the best, the still outstanding. It is hard to believe order to compel payment. committee sought the most respon- that any private lending institution Secondly, the bill ensures that if any sible. would risk lending money to the trust one company cannot pay its obligation As I said on the floor previously, a fund which it could not clearly repay under the trust fund—and this is im- leading actuary with Tillinghast-Tow- in the future. However, even if some portant—if any one company can’t pay ers Perrin, an actuarial firm for the private institution decided to take that its obligation under the trust fund, the Manville Trust, testified before the risk, the bill specifically prohibits the other companies must shoulder the committee that ‘‘$108 billion appears to administrator from entering into such cost. be more than adequate,’’ and the RAND a financially risky transaction. Specifically, section 204(h)—please Institute estimates the future remain- As I just read, the explicit language read it, opposition—Guaranteed Pay- ing costs of asbestos-related loss and in the bill limits the administrator’s ment Surcharge, states that if the re- expense at $130 billion. In addition, the borrowing capacity to an amount that quired contribution does not come in, new projections calculated by can be repaid in full with interest from The administrator shall assess a guaran- Tillinghast also confirm that the con- the available assets of the fund as of teed payment surcharge. tributions to the asbestos trust fund the time of borrowing and all amounts Here it is, section 204(h)(3): should be sufficient. expected to be paid by participants To the extent it is insufficient to satisfy While opponents argue that the lat- during the subsequent 10 years. the required minimum aggregate annual est Tillinghast studies support their Finally, those who support the budg- payment, the administrator— argument that there is inadequate et point of order argue that collection Not may— funding, a closer analysis reveals that of the contributions by the businesses shall assess a guaranteed payment sur- the new Tillinghast projections are ac- and insurers could fail to materialize, charge. tually in line with the projections used leaving the U.S. taxpayer on the hook So the administrator shall collect to calculate the money necessary to to cover the costs, and we should look any shortfall in contributions from pay claims under the bill. Let me tell at that. We should look at it very care- other defendant companies. This legis- you how that happens. fully. But this ignores explicit provi- lation contains specific language to re- The new Tillinghast claims projec- sions contained in the legislation. quire that companies pay and that if tions include claims for foreign expo- Senator LEAHY and I fought hard to the enforcement mechanism should fail sures as well as Manville’s level VI can- ensure that the payment obligations for any reason, the the money still cers. Both of these categories of claim- included in the bill were enforceable comes into the trust through payments ants are ineligible for compensation and guaranteed. from other companies. under this bill’s medical criteria. When First, the bill gives the adminis- With explicit language protecting the these changes are accounted for and trator enforcement authority to com- American taxpayer and the U.S. Treas- the Tillinghast numbers are adjusted, pel payment by the companies, both ury from ever having to contribute to their new projections fall squarely defendant businesses and insurers the fund, with explicit language lim- within the range that the asbestos alike. iting the administrator’s borrowing au- trust fund is based on, and the adjusted Let me quote section 223. It provides: thority, and with explicit language en- Tillinghast numbers are actually less If any participant fails to make any pay- suring that the anticipated contribu- than CBO’s projections. ment in the amount of, and according to, the tions are made, this legislation makes In addition, by using a no-fault ad- schedule under this Act or as prescribed by it abundantly clear that in no way, ministrative system, the fund will sig- the Administrator after demand and a 30-day shape, or form can the trust harm the nificantly reduce the substantial trans- opportunity to cure the default, there shall Federal budget. action costs of the current tort system, be a lien— Opponents of the bill argue that costs which almost all experts agree Not there may be a lien; there shall those of us who support the bill have consume more than half of the total be a lien, mandatory language— ‘‘significantly distort[ed] CBO’s con- amount paid out for asbestos claims.

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1144 CONGRESSIONAL RECORD — SENATE February 14, 2006 Remember at the beginning I said can we possibly know. However, that front, right away—much more than a that one of the most startling things to should not mean that we do nothing, chance, a commitment. This provision me was to realize what happens with that we let the present system, which ensures the terminally ill individuals settlements, what happens to the dol- we know is not good, prevail. That does will have their claims processed quick- lars of settlements. The fact is that 61 not mean that the analyses and projec- ly, and it should resolve some of the percent of all of the settlement monies tions that have been done are useless, most pressing and most expensive go for defendant costs, go for plaintiff not valuable, or inaccurate. Instead, we claims before the trust is up and run- costs, go for court costs, go for legal have to find the best projections avail- ning so that there will not be an over- fees. Sixty-one percent. Sixty-one per- able, the most sound, the ones that are whelming flood of claims filed with the cent, then, of any tort court sum goes based on sound calculation and real- trust on day one. not to the victim but to lawyers and to world experience of other trusts. That Senator SPECTER included language tort costs. is what this legislation does. in the statute of limitations to give in- In addition, by using a no-fault ad- Another argument made by oppo- dividuals sufficient time to file their ministrative system, the fund signifi- nents is that there will be additional claims—5 years—so there will not be a cantly reduces the substantial trans- costs related to the debt service that need to rush to the fund for fear of action costs of the current tort system: could overwhelm the trust. Some have being cut off and the administrator and (A) you don’t need a lawyer; and (B) if declared: the medical board can concentrate on you want to come in with a lawyer, Debt service contributes greatly to the the sickest people first. that lawyer is limited to a 5-percent trust fund’s insolvency, underlining the se- Finally, as I mentioned previously, fee—not 30, 40, 50, 60, or 70 percent of a vere mismatch between the timing of pay- there are tight restrictions on how recovery, but 5 percent. ments into the fund. much the administrator may borrow According to the RAND Institute, 58 Opponents have said that this conclu- for the express purpose of ensuring percent of the money spent on asbestos sion is based on the argument that that the trust does not face a shortfall claims goes toward attorney’s fees—31 there will be a flood of claims at the simply because of a debt service prob- percent to defense attorneys, and 27 start of the trust. However, this con- lem. I would like to address the Bates percent to plaintiff attorneys. cern has also been examined and ad- I urge everyone to read the RAND In- dressed through the process of drafting White study in a little more depth. stitute’s recent study. It is 168 pages. It this bill. The so-called upfront funding When opponents argue that the projec- tions are too low, many of the argu- describes what is happening in the tort has been significantly increased to the ments made to support this conclusion system, and it is an independent, very point where the trust fund now will appear to be based on the Bates White good analysis. have $42 billion in the first 5 years to study. The bottom line: The asbestos bill pay claims. Under S. 2290—the old During consideration of this legisla- needs less money to pay victims fair bill—the administrator would have col- tion, the Committee held a hearing on compensation since it eliminates these lected up to $19 billion during the first the Bates White study and asked CBO transaction costs which drain money 3 years and only $29 billion in the first to review its conclusions. I was present away from the individual. 5 years. The difference is $15 billion has and listened carefully to the testi- This bill as amended obligates de- been added to the upfront funding of mony. Several criticisms and concerns fendant and insurer participants to this bill. That is a 30-percent increase were raised about the Bates White contribute $136 billion—that is a lot of in the startup funding from what was study, its assumptions, and its method- money—$136 billion to the fund, and at provided in the bill last Congress. ology. Witnesses before the Committee least $4 billion more would be contrib- In addition, the Judiciary Committee made several points that significantly uted from confirmed bankruptcy and adopted an amendment to speed up the undermined the credibility of the Bates other asbestos compensation trust initial contributions by insurers, de- White study. funds. In fact, CBO recently estimated fendant companies, and bankruptcy First, witnesses argued that the that the amount to be contributed by trusts so that the administrator can Bates White study overestimated occu- bankruptcy trusts will likely be around pay claims quickly. pational exposure. In determining the $8 billion. Here is what CBO said: Section 204 requires the defendant overall number of individuals who The value of cash and financial assets of companies to pay their initial payment could recover from the bill the Bates the asbestos bankruptcy trust funds would within 90 days from the date of the en- White study appears to have counted be $7.5 billion in 2006 and $8.1 billion when actment, and we are very serious about every employee who ever worked in an liquidated. that. Section 212 requires the insurers industry where there was asbestos ex- As I stated previously, if the projec- to make their first payment within the posure. This conclusion was reached by tions are wrong and the amount of same time line. And Section 402 re- comparing the Bates White study to money available proves to be insuffi- quires the bankruptcy trusts to also the Nicholson study. cient in the long run, victims will be make their first payment within the The Nicholson, Perkel and Selikoff allowed to return to the courts. With first 90 days. study, conducted in 1982, set the stand- this safety net, the legislation ensures Here is what the bill says: ard on this subject and is considered that no one is left without an avenue of Each defendant participant shall file, not the most comprehensive asbestos recourse. later than 90 days; insurer participants, not study. It provides a good foundation for Some people have said there is a lack later than 90 days. estimating the future cases of asbestos of certainty. A lack of certainty is not This is bill language. disease, and has been utilized in many unusual when projecting what might The assets in any trust established to pro- of the models to develop future asbes- occur in the future for the Federal vide compensation shall be transferred to the tos disease claims projections, includ- budget or for future programs. I do not fund not later than 90 days after enactment. ing claims projections made for the believe that uncertainty or ambiguity So everything is done in this bill to Manville Trust. Yet, Bates White’s con- necessarily leads to the conclusion move a fast start forward. Within 3 clusions are almost triple Nicholson’s. that the trust fund will require more months, the administrator will have Navigant is a consulting firm that funding. But I would hope opponents collected initial payments from all the has worked on asbestos claims since would view the ambiguities for what participants and will have almost $9 the 1980s doing evaluations of claims they are—an acknowledgment that no billion. projections and costs to companies. one can predict the future with 100 per- Next, the bill includes a streamlined During the hearing, Navigant’s witness cent certainty, and the best anyone process to settle claims of terminally explained that this discrepancy seemed can do is make projections using sound ill individuals immediately—imme- to occur because Bates White simply statistical analyses, which this com- diately—upon enactment of this legis- used a straight percentage of the total mittee’s bill has attempted to do. lation. That is what is so attractive to U.S. workforce, whereas Nicholson con- We don’t know how many people me. Someone who has a very short ducted an extensive analysis of the in- have been exposed to asbestos and, of time to live, someone with mesothe- dustry and occupational exposure to course, who will develop a disease—nor lioma, has a chance of getting paid up- asbestos.

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1145 Next, Bates White did not make a Trades department of the AFL–CIO, nesses, insurers, trial lawyers, CBO, distinction in its calculations between and has authored over 50 peer-reviewed the current bankruptcy trusts, or the exposed populations and eligible popu- publications and technical reports in courts now hearing asbestos cases. lations. This means that in the Bates the field of occupational and environ- For all these reasons, many of us White study it appears that every per- mental medicine, including papers de- concluded that the Bates White anal- son who was ever exposed to asbestos scribing the findings of asbestos-re- ysis fell far outside acceptable ranges was counted as eligible under the trust lated disease in this group of construc- for projections. To be clear, throughout fund. However, not all individuals who tion workers. this process both the AFL–CIO witness are exposed to asbestos will become She pointed out that the overall as well as business witnesses disputed sick, nor will all individuals who are number from which Dr. Bates cal- the assumptions underlying the Bates exposed to asbestos be able to meet the culated the claims that will go into the White study and rejected its conclu- medical criteria and the exposure re- trust is at least ten times too big. She sion. quirements necessary to receive com- explained that Dr. Bates extrapolated The next argument used by oppo- pensation. from a study that uses 2–3 fiber years nents is that the asbestos trust fund is While considering asbestos legisla- as the basis for what constitutes sig- going to fail because other trust funds tion, several witnesses have pointed nificant exposure. The reference to have failed. This is not a new concern. out that just because someone may fiber years is a way to calculate how In fact, throughout the process we have been exposed to asbestos at some much asbestos an individual has been looked at previous trust funds and at- point in their lifetime, it does not fol- exposed to. However, the legislation re- tempted to evaluate the problems that low that they will become sick or will quires at least 25–40 fiber years to con- arose. qualify for payment. I think this is an stitute significant exposure. So the leg- The Black Lung Disability Fund was important point and is feeding some of islation requires a much higher level of established by the Black Lung Benefits the misperceptions around this bill. exposure to qualify. Revenue Act to pay black lung benefits The science has not determined that Witnesses concluded that by failing to eligible miners whose mine employ- every person who is exposed to asbestos to adequately consider each of these ment ended before 1970 or whose em- will get sick. factors, the Bates White study provided ployers were no longer in existence and This is true not just because each in- a significant overestimation of claims. therefore could not be assigned liabil- dividual is different from one another Next, the committee heard testimony ity for their benefits. It was funded by and has differences in their immune that argued the estimates made by the excise taxes levied on coal sold by mine systems, but because developing an as- Bates White study do not reflect cur- operators, but the Act includes lan- bestos-related disease usually requires rent experiences. The Bates White guage for repayable advances to the prolonged and sustained exposure. As- study asserts that by creating a no- fund from the U.S. Treasury. This bestos is a naturally-occurring mineral fault system there will be a huge in- meant that when the Black Lung Trust and most of us have been exposed to as- crease in filing of other cancer claims Fund’s resources were inadequate to bestos dust simply by walking out- because it is no-fault rather than the meet its obligations the U.S. Treasury doors. However, the current science adversarial system in the courts. How- could advance the fund money to cover concludes that casual contact is rarely ever, the Manville Trust has similar, the costs. This provision is inten- sufficient to develop an asbestos dis- and in some cases exactly the same, tionally not included in the asbestos ease. medical criteria as the criteria in the bill and instead language stating the Dr. James Crapo is Professor of Medi- FAIR Act, and it does not have litiga- opposite is included. cine at the National Jewish Medical tion costs nor the deterrent of the ad- It is true that the number of black and Research Center. He has more than versarial system. lung benefit claims were vastly under- 25 years of experience with asbestos-re- The Manville Trust was formed in estimated and the costs of the black lated issues, including medical re- 1988, and is the first and largest asbes- lung program were also underesti- search and clinical treatment of pa- tos trust. In fact, it is not just the larg- mated. However, while the Black Lung tients suffering from asbestos-related est asbestos trust, but it is the largest Fund’s costs were to be paid by indus- diseases and has published in the field toxic tort or personal injury trust of try, by 1977, 7 years after enactment, of environmental toxicology, including any kind. As of mid-2005 the trust had industry had made very few payments the basis of asbestos-induced lung in- paid about $3.3 billion to settle 655,096 to the fund. The fund then sustained a jury. claims. The Manville Trust has gained deficit and the U.S. Treasury had to He testified that: so much experience in the field of as- pay claims because of this default by All of us are exposed to asbestos from the bestos claims settlements that it plans mining companies. We did not ignore environment and consequently have asbestos to begin offering claims-resolution the problems created by the Black in our lungs. This background level of expo- services to other companies. Therefore, Lung Fund, rather we included several sure does not cause any asbestos-related dis- the experience of the Manville Trust provisions in the asbestos bill to pre- ease. Those diseases normally require sub- should be considered a fair starting vent this situation from taking place. stantial occupational exposures or the equiv- point for projections. They are: explicit language prohib- alent. When comparing the Bates White iting the Administrator from requiring In addition, the Navigant and the study to Manville, witnesses from the any costs to be paid by U.S. Treasury; labor witnesses pointed out that the committee hearing asserted Bates limits on borrowing authority and ca- Bates White study did not seem to take White projections are four times higher pacity; strong enforcement provisions into account that exposure rates with- for other cancers than Manville. This if businesses default; requirements that in certain occupations decreased over was viewed as well outside a reasonable other companies cover any potential time. This means that the Bates White difference. shortfall; and reversion to the tort sys- study did not account for the fact that In addition, witnesses pointed out tem if the trust runs out of money. I as companies became more aware of that there are several evidentiary re- have already discussed the language in the dangers of asbestos they often did quirements that do not seem to be ade- the asbestos bill to ensure that the more to protect their workers. quately accounted for. In the two areas business and insurer contributions are The committee also heard from Dr. where the Bates White study predicts made and enforced, and to limit how Laura Stewart Welch, a board-certified significant growth in claims, it does much the administrator may borrow. physician in internal medicine and oc- not account for the role of the physi- Finally, I would like to address an cupational medicine. She has an active cians panel which is made up of three overarching concern that has been re- medical practice and treated many doctors who will personally review peated throughout the debate. Interest- workers with asbestos-related dis- claims. ingly, opponents keep arguing for 100- orders. She is currently medical direc- Lastly, the committee heard from ex- percent certainty. I don’t know when tor for The Center to Protect Workers perts who stated that the Bates White we are ever provided 100-percent cer- Rights, a research institute affiliated study used a methodology that has not tainty. Congress is supposed to look at with the Building and Construction been accepted by the unions, busi- all the information available, hold

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1146 CONGRESSIONAL RECORD — SENATE February 14, 2006 hearings, raise questions, draft legisla- ceived calls that start with: Patrick, I do for my friend, the ranking member, tion, offer amendments and then try to have been thinking about this—and off and my friend the chairman. But I dis- pass a statute. That is exactly what we go. Usually, that is about points to agree with any position that says this has been done here. which I should be paying more atten- legislation would add to our deficit. If Senators SPECTER and LEAHY have tion. All of that has gone toward a bet- you fully read the text of our legisla- gone well beyond what is normally ter bill. tion and the testimony of the Congres- done around here to address problems. The senior Senator from Pennsyl- sional Budget Office and the recent Every time an issue has been raised, vania is not on the floor looking for analysis of the fiscal impact of this they have tried to address the problem praise, but I am going to take a mo- legislation, it does not support the and find a solution. This stands in ment to praise him from this side of point of order. We have heard people sharp contrast to the take-it-or-leave- the aisle. I do not know a single Sen- who are opposed to this say that some- it process that often describes legisla- ator, Republican or Democrat, who how a privately funded trust will add tive craftsmanship. came to him and said: I want to talk to to the Federal debt. This week, the To now hear my colleagues express you about this, who was not given a Congressional Budget Office made it such an intense level of outrage that fair, thorough hearing. If they had a very clear that the trust fund set up the bipartisan bill before the Senate better way of doing it, the Senator under this bill does not add to the Fed- does not contain adequate certainty or from Pennsylvania would say: Let’s eral debt. CBO stated in its letter that enough compromises is hard to swal- consider it. He and I would talk about ‘‘the legislation would be deficit neu- low. To argue that a bill should not it, and if we were convinced it was a tral over the life of the fund.’’ better way, it became part of the bill. move forward because there might be I ask unanimous consent that that I have been here 31 years, as I am unintended consequences would mean letter from CBO be printed in the sometimes wont to say. My children re- we would almost never pass legislation. RECORD. And if we can’t pass legislation unless mind me they had forgotten I was that There being no objection, the mate- we can guarantee there will never be old. But I have been here 31 years, and rial was ordered to be printed in the an unintended outcome, then we might I very rarely have seen a chairman of RECORD, as follows: as well pack up and go home. either party take that much time and U.S. CONGRESS, I should say I think this is a very im- effort to accommodate every single Senator. I applaud my friend from CONGRESSIONAL BUDGET OFFICE, portant bill. Let me end with what I Washington, DC, February 13, 2006. Pennsylvania for doing that. started. People who think the tort sys- Hon. ARLEN SPECTER, But the proof comes in the pudding. tem is the way to go, who think it is Chairman, Committee on the Judiciary, Because he did do that, we have an OK that 61 percent of the settlement U.S. Senate, Washington, DC. even better bill than when we started. dollars go to transaction costs, who DEAR MR. CHAIRMAN: At the request of the We spent several years on this. I recall think that the victims who do not get Committee on the Budget, the Congressional conducting one of the first hearings on this money are best served by the tort Budget Office (CBO) has reviewed Senate this several years ago. We have done Amendment No. 2746 to S. 852, the Fairness system—they are going to vote to sus- this through two different Congresses. in Asbestos Injury Resolution (FAIR) Act of tain the point of order against the bill. We have had numerous markups, and 2005, a substitute amendment that was print- For those of us who believe it is the we have come out with a better bill. It ed in the Congressional Record on February sickest victims who are going to be is on the floor now because it is the ag- 9, 2006. This review addresses the amend- ment’s year-by-year budgetary impact over best taken care of in this trust, that gregate of great ideas. this trust sets up an orderly and medi- the first 10 years, its aggregate impact in This is why the point of order is so succeeding 10-year periods, and its cumu- cally oriented protocol for a no-fault frustrating, the point of order that the trust system and that victims are lative budgetary impact over the life of the nonpartisan Congressional Budget Of- proposed Asbestos Injury Claims Resolution going to benefit from it and businesses fice said they would not expect this Fund (Asbestos Fund). It also addresses the will cease going into bankruptcy be- legislation to add to the Federal debt. potential costs of intergovernmental and pri- cause of it, if you think that is a wor- Yet we still have to face this point of vate-sector mandates in the legislation. thy thing, then you will vote for us. order because the point of order has be- BUDGETARY IMPACT I thank the Chair. I particularly come for many a backdoor way of kill- thank the chairman and the ranking ing this bill. If it is done to kill the Assuming that the bill as amended is en- acted before the end of 2006, and based on the member of the committee. This has not bill, Senators should ask themselves assumptions underlying our August 2005 cost been an easy bill. I truly believe they what they are then faced with? I will have both done a wonderful job, in the estimate for S. 852, CBO estimates that pay- tell you what they are faced with. They ments to eligible claimants, start-up costs, finest interests of the Senate, by work- are faced with thousands upon thou- investment transactions, and administrative ing together across the aisle. sands of victims—and we are all for the expenses of the Asbestos Fund would total The PRESIDING OFFICER (Mr. victims. Lord knows everybody said about $64 billion over the 2006–2015 period CORNYN). The Senator from Vermont. that. But if you vote to sustain this (excluding debt-service costs). Those sums Mr. LEAHY. Mr. President, par- point of order what you are telling would appear in the federal budget as direct liamentary inquiry: Are we operating thousands upon thousands of victims spending (see the table below). Over the same 10-year period, we estimate that the fund under controlled time? is: You are on your own. You probably The PRESIDING OFFICER. We are would collect about $58 billion from firms have no chance of getting the recovery and insurance companies with past asbestos not. you would have here. liability and from certain private asbestos Mr. LEAHY. Mr. President, first, I Certainly, you tell all those veterans trust funds. CBO expects that those sums thank the distinguished Senator from who have no place of recovery that would be treated in the budget as federal rev- California. She has talked about the they are gone. That is why every single enues. In addition, the Joint Committee on daunting hours the senior Senator veterans group I can think of has en- Taxation (JCT) estimates that enactment of from Pennsylvania has put in on this dorsed the legislation, the Specter- the legislation would lead to a reduction of legislation, as well as those of us who Leahy legislation. They have endorsed about $1.1 billion in receipts from corporate have been concerned with it. income taxes over the 2007–2015 period; this it. That is why all those veterans orga- would affect the budget totals but would not I note the Senator from California nizations said: Don’t vote to sustain affect the balances of the Asbestos Fund. has spent those hours with us. She has this point of order. Thus, CBO estimates federal revenues would been there, her staff has been there—I I have a great deal of respect for the increase by about $57 billion over the next 10 don’t know how many times I have re- Senate Budget Committee. Certainly, I years under the bill.

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00012 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1147 ESTIMATED BUDGETARY IMPACT OF S. 852, IF AMENDED BY AMENDMENT NO. 2746

By fiscal year, in billions of dollars— 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

CHANGES IN DIRECT SPENDING Estimated Budget Authority ...... * 8.7 23.1 11.1 5.3 4.0 5.1 5.0 4.9 4.7 Estimated Outlays ...... * 8.7 6.7 8.2 9.3 9.4 6.6 5.2 5.1 5.0 CHANGES IN REVENUES Asbestos Fund Revenues ...... 0 8.7 7.0 8.2 9.3 9.1 4.0 4.0 4.0 4.0 Corporate Income Taxes ...... 0 ¥0.1 ¥0.2 ¥0.2 ¥0.2 ¥0.1 ¥0.1 ¥0.1 * * Total Revenues ...... 0 8.6 6.8 8.0 9.1 9.0 3.9 3.9 4.0 4.0 CHANGES IN THE DEFICIT Estimated Net Increase or Decrease (¥) in the Budget Deficit ...... * 0.1 ¥0.1 0.2 0.2 0.4 2.7 1.3 1.2 1.0 Note: *= Between $50 million and ¥$50 million.

CBO’s estimate of spending from the As- MANDATES to get through the whole tort system? bestos Fund over the 2006–2015 period differs The proposed amendment contains the No, nor will their attorneys even begin from that in CBO’s August 2005 cost estimate same intergovernmental and private-sector to recover the huge amounts some of for S. 852 because we now assume a later en- mandates as the reported bill. It would pre- the attorneys did. actment date for the legislation. In addition, empt state laws relating to asbestos claims The private companies are required certain provisions in section 402 regarding and prevent state courts from ruling on when assets would be transferred from pri- under this legislation to continue mak- those cases. It also would require state gov- ing payments to the fund even after vate asbestos bankruptcy trust funds to the ernments to comply with requests for infor- proposed federal Asbestos Fund would slight- mation from the Asbestos Insurers Commis- sunset until all of the fund’s obliga- ly reduce both spending and revenues, rel- sion. CBO estimates that any cost associated tions are satisfied under section 405. ative to the amounts shown in the earlier with those intergovernmental mandates Even the administrative expenses are cost estimate. CBO estimates that other pro- would be insignificant and well below the paid from this private fund. visions of the amendment would not signifi- threshold—$64 million in 2006, adjusted annu- Finally, the bill clearly states: cantly affect spending or receipts over the ally for inflation—established in the Un- Nothing in this Act shall be construed to 10-year period, relative to the amounts funded Mandates Reform Act (UMRA). create any obligation of funding from the shown in CBO’s earlier estimate. The proposed amendment would also im- United States Government, including any The revenue effects shown in the table also pose mandates on certain individuals filing borrowing authorized . . . incorporate a change in CBO’s cost estimate claims for compensation for injuries caused unrelated to the amendment. That change The Senator from Pennsylvania and I by exposure to asbestos; certain companies have this as a touchstone all the way involves effects of the legislation on the with prior expenditures related to asbestos amounts that insurers and defendant firms personal injury claims; certain insurance through, that we are not passing a would deduct to arrive at taxable corporate companies; trusts established to provide piece of legislation for the taxpayers to income. In CBO’s earlier estimate, it was compensation for asbestos claims; health in- fund. We are seeking help for those who judged that the amounts deducted as pay- surers; and persons involved in manufac- have been injured. ments made over the life of the trust fund turing, processing, or selling certain prod- Senator SPECTER and I have been were approximately the same as would be de- ucts containing asbestos. Based on informa- working on this issue for years. We ducted to cover claims under the current tion from academic, industry, government, tort compensation system, producing no net have carefully considered the design of and other sources, CBO concludes that the effects on corporate income tax collections the compensation program for asbestos aggregate direct cost to the private sector of over the life of the fund. victims and ways to avoid the pitfalls This assessment has not changed. But complying with all of the mandates in the of other Federal compensation pro- while total deductions over the life of the bill would well exceed the annual threshold grams that have been enacted by Con- established by UMRA ($128 million in 2006, trust fund would not change, their distribu- gress. Many of the compensation pro- tion over those years could. Larger deduc- adjusted annually for inflation). If you wish further details on this esti- grams cited by the opponents of S. 852 tions up front, as a result of S. 852, could were created by Congress with manda- produce less revenue from corporate income mate, we would be pleased to provide them. taxes in the earlier years, which would be The CBO staff contact is Mike Waters, who tory Federal spending and did not con- offset by a revenue gain in later years. Lack- may be reached at 226–2860. tain a provision to sunset the program ing any basis for estimating this timing ef- Sincerely, if it went under-funded. We rejected fect, CBO elected not to incorporate it into DONALD B. MARRON, such proposals for asbestos legislation. its cost estimate. Recently, the Joint Com- Acting Director. Many opponents of our trust fund mittee on Taxation produced an estimate of Mr. LEAHY. Former Senator Don wanted the claims processing to be in a this timing effect. In its estimation, receipts Nickles, with whom many of us served, private corporation. Labor groups and from corporate income taxes would be re- raised this concern. The Government victims testified that operating this duced by about $1.1 billion over the 2007–2015 Accountability Office responded: trust fund in a new, private entity period. CBO has elected to incorporate JCT’s [T]o ensure the Government incurs no li- would delay compensation to sick vic- estimate of this effect in its projections. ability for repayment of borrowing under That adjustment does not affect spending or tims and would entail significant ad- this act, Congress may wish to explicitly receipts of the proposed Asbestos Fund. ministrative costs. Accordingly, we CBO also estimates that, so long as the state repayment of borrowing is limited sole- agreed to house the asbestos trust fund fund’s administrator does not borrow ly to balances available in the fund. within the Department of Labor be- amounts beyond the means of the fund to That is precisely what we did in the cause it has expertise with compensa- repay (as the bill would require), the govern- FAIR Act. tion programs. It has existing staff ment’s general funds would not be used to A simple reading of the text of the with relevant experience and critical pay asbestos claims. Furthermore, section bill shows that defendants and their in- infrastructure and contracting capa- 406 of the bill states that the legislation surers are obligated to pay $136 billion bilities to ensure an accelerated pace would not obligate the federal government to to the fund, and additionally another pay any part of an award under the bill if to pay the sickest victims within amounts in the asbestos fund are inadequate. $4 billion of the assets from existing months of enactment. Thus, CBO concludes that the legislation bankruptcy trusts. If this level of fund- Members of the financial services would be deficit-neutral over the life of the ing proves to be insufficient—most community recently contacted my of- fund. doubt it will not, but if it does—then fice to rebut the conclusions made in Substantial payments from the fund would we revert back to the tort system the recent ‘‘white paper’’ distributed continue well after 2015. Consequently, pur- which we have now. by the minority staff of the Senate suant to section 407 of H. Con. Res. 95 (the If we pass this legislation, thousands Budget Committee. The investment Concurrent Resolution on the Budget, Fiscal of people who had their health severely Year 2006), CBO estimates that enacting the community indicates that this minor- bill as amended would cause an increase in impacted through no fault of their own ity staff report circulated last week net direct spending greater than $5 billion in because of asbestos will have a chance dramatically overstates the financing at least one of the 10-year periods from 2016 to recover. Will some recover as much expenses to be expected under this leg- to 2055. as some of the lucky few who were able islation.

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1148 CONGRESSIONAL RECORD — SENATE February 14, 2006 This document alleges that $125 bil- If the trust gets even the lowest invest- tempt to scuttle this bipartisan legisla- lion will be spent by the fund on bor- ment grade rating (BBB) and pays market tion, but $130 billion in expected claims rowing because it vastly overstates rates, which are under 6%, its total bor- is the CBO’s middle range and is pro- claims projections and interest rates. rowing costs under the staffs draconian sce- vided for under our legislation. nario would be under $30 billion; a far cry The minority staff document ignores from $125 billion. Finally, opponents of this legislation the fact that section 221 of the legisla- Sincerely, contend that the fund will not actually tion provides that borrowing by the Financial Institutions for Asbestos Re- receive $140 billion from the private trust fund will be within a 10-year time form. companies obligated to contribute frame. The document alleges that the Mr. LEAHY. Mr. President, at the based on their previous asbestos ex- FAIR Act will pay borrowing at an in- heart of most arguments against the penditures. In his testimony before the terest rate of a whopping 25 percent. funding structure provided under the Senate Judiciary Committee last Fall, This assumes an interest rate six times FAIR Act are allegations that pre- then-CBO Director Douglas Holtz- higher than the current 10-year Treas- dictions about the number of claims Eakin clearly stated that: ‘‘CBO ury bond rate. expected to come to the fund have been projects that total receipts to the fund In fact, the financial community underestimated. Over the past 5 years, over its lifetime would amount to opines that due to the structural as- the Judiciary Committee received ex- about $140 billion, including a small pects of the legislative language, it is tensive testimony from a variety of au- amount of interest earnings on its bal- ‘‘overwhelmingly likely that financial diting companies, economic analysts ances.’’ markets will treat the trust fund as an and existing asbestos trusts about The FAIR Act contains several provi- investment grade credit’’ and therefore claims projections. Three years ago, a sions to ensure that the contributions it would have access to highly favor- leading actuary with Tillinghast-Tow- will be collected through numerous en- able borrowing rates. ers Perrin testified that ‘‘$108 billion forcement provisions which provide the I ask unanimous consent to have appears to be more than adequate’’ administrator with subpoena power printed in the RECORD the FIAR letter. while other firms estimated that $130 and the ability to pursue punitive dam- There being no objection, the mate- billion would be sufficient to cover the ages for nonpayment. In addition, our rial was ordered to be printed in the trust fund expenses. legislation contains a funding guar- RECORD, as follows: It is not surprising that projections antee so that other companies will FINANCIAL INSTITUTIONS FOR about future behavior vary from firm make up the difference if some compa- ASBESTOS REFORM, to firm because the assumptions are nies are unable to pay their own con- Washington, DC, February 10, 2006. different. Some professional analysts tribution. Re Senate Budget Committee Democratic Even if the fund sunsets and victims Staff White Paper. have estimated that we will experience significantly less than $140 billion in are allowed to return to the tort sys- Hon. ARLEN SPECTER, claims and others have estimated that tem, the private companies are none- Hon. PATRICK LEAHY, theless required to continue to pay Committee on the Judiciary, we will experience more. U.S. Senate, Washington, DC. Last week’s document produced by into the fund until all of the fund’s ob- DEAR SENATORS: As members of the invest- some staff on the Budget Committee ligations from borrowing costs and re- ing community we must take issue with the assumes that $160 billion will be paid solving victim claims are satisfied. recent report prepared by the Democratic out in claims based on a worst case sce- I understand that some of my col- staff of the Senate Budget Committee. This nario of one projection of claims activ- leagues have raised this budget point of staff paper flunks ‘‘Finance 101’’. The anal- ity. order to sink the FAIR Act, but I urge ysis by Democratic staff of S. 852 displays a The minority staff document cir- them to consider the purpose of such basic misunderstanding of the financing that culated last week adopted claims pro- budgetary mechanisms in light of the will occur in the proposed asbestos claims jections plainly at odds with the expe- simple fact that we have created a pri- trust fund. It suggests that the trust fund’s obligations will exceed designed contribu- rience of the Manville trust and with- vately financed structure that the Con- tions by a hair-raising total of $150 billion in out consideration for the medical cri- gressional Budget Office has estimated nominal terms. This suggestion lacks any teria in S. 852. The overwhelming ma- will not add to the Federal debt. credible basis. jority of nonmalignant claims paid by This point of order is a procedural The Democratic staff report attributes $117 the Manville trust go to unimpaired mechanism intended to promote fiscal billion of this $150 billion to increased fi- claimants. The fund created by the discipline. In light of CBO’s explicit nancing expenses. The report estimate of FAIR Act would not compensate these statement that ‘‘CBO concludes that $125 billion in financing costs contrasts with the legislation would be deficit-neutral a Congressional Budget Office estimate that claims, so this significant disparity net financing expenses for the trust will be must be taken into account. over the life of the fund,’’ no point of $8 billion. This huge discrepancy is the result The minority staff document also order should prevent such important, of flawed and unrealistic assumptions in the fails to account for the different med- completely privately funded legislation staff report. ical criteria for malignant claims paid as the FAIR Act. The staff study projects that the trust fund by the Manville trust. Thankfully, the This latest analysis from CBO rein- will make $160 billion in claims payments, CBO’s estimate takes the FAIR Act’s forces the fact that the asbestos trust vs. $130 billion estimated by the CBO. In a specific medical criteria into account fund legislation would not add to the worst case scenario where the incremental Government’s Federal debt. The bot- $30 billion of claims would be financed by when it considered its claims projec- borrowing in the trust fund’s initial years of tions. tom line from CBO is that this bill is operation, the trust would need to borrow $50 The CBO considered all relevant esti- ‘‘deficit-neutral.’’ There is no reason to billion as opposed to the $20 billion esti- mates and met with scores of stake- sustain the budget point of order. The mated by CBO. holders, financial experts, economists FAIR Act is the right solution for vic- Section 221 of the FAIR Act provides that and auditors in determining whether tims and businesses. This bipartisan borrowing by the trust fund will be within a the compensation provided for victims bill offers fair and efficient relief to ten year time frame. Doing the math, the under S. 852 would be adequate. After long-suffering victims of asbestos expo- trust fund would be borrowing $50 billion at an unheard of interest rate of 25% in order to years of analysis, they found that sure while providing business with fi- generate $125 billion of net financing ex- while victim compensation could range nancial certainty and an alternative to penses over the ten-year borrowing period. It from $120 to $150 billion, its middle bankruptcy. should be noted that ten-year Treasury range estimate using its chosen claims I recently received a letter from the bonds currently yield 4.54%. projections would yield approximately International Association of Heat and There is not even a remote possibility that $130 billion in claimant compensation, Frost Insulators and Asbestos Workers. the trust fund administrator will have to and that $140 billion, plus investment The workers represented by this union borrow at rates even approaching 25%. know first hand the devastation caused Structural aspects of the proposed trust, in- income, would be sufficient to cover all cluding a super priority lien securing obliga- claims payments, administrative costs, by asbestos, and I know they would tions of the payers, make it overwhelmingly and borrowing costs. hate to see the unique opportunity we likely that financial markets will treat the Of course opponents can seize upon have before us be destroyed by a tech- trust fund as an investment grade credit. worst case scenarios in an 11th hour at- nicality.

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1149 They wrote: that has gone into the crafting of this stuff. He looks at this a little dif- We believe S. 852 offers the best hope of legislation including the specific provi- ferently than I do, but our intent is the providing fair and equitable compensation sions I have highlighted in this state- same. We need to have this vote, find on a national basis for those who have suf- ment making it absolutely clear that out what happens there, and move on fered or will suffer from the devastating ef- the Federal Government is simply not to this legislation, or whatever else fects of asbestos exposure in decades to liable under this legislation. comes up. come. Again, if I have offended Democrats For these reasons, we urge you to reject The Judiciary Committee received the budget point of order, which holds the extensive testimony from economists or Republicans because of my advocacy potential to kill this legislation that is so and experts in claims projections. All on this issue, I apologize. important to our members. of this process and expertise was con- I have no objection. Let us not let down the very people sidered as part of the Congressional The PRESIDING OFFICER. Without we are seeking to help. I ask unani- Budget Office official estimate. objection, it is so ordered. Mr. FRIST. Mr. President, to clarify, mous consent that the letter from the The CBO has testified that the FAIR given my math being incorrect, that Act is not predicted to add to the Fed- International Association of Heat and vote would be a little bit after 6 o’clock eral debt; therefore, it should not suf- Frost Insulators and Asbestos Workers tonight on the motion to waive the fer from the budget point of order of February 13, 2006 be printed in the point of order. RECORD. raised against it. I urge my colleagues Mr. REID. Although people do not There being no objection, the mate- to waive the point of order. The vic- have to use all time. rial was ordered to be printed in the tims of asbestos exposure will not ben- Mr. FRIST. That is correct. It could RECORD, as follows: efit from this latest tactic to stop this be earlier than that. Then we would INTERNATIONAL ASSOCIATION OF legislation. not have any more rollcall votes after HEAT & FROST INSULATORS & AS- Mr. REID. Mr. President, I suggest that vote tonight. BESTOS WORKERS, the absence of a quorum. The PRESIDING OFFICER. The Sen- Lanham, MD, February 13, 2006. The PRESIDING OFFICER. The ator from Pennsylvania. DEAR SENATOR: We write you to express clerk will call the roll. Mr. SPECTER. Mr. President, I am our concern regarding the budget point of The legislative clerk proceeded to order that is currently being considered with advised that Senator HATCH, Senator respect to the Fairness in Asbestos Injury call the roll. DOMENICI, and Senator ALEXANDER Resolution (FAIR) Act, S. 852. It is frankly Mr. LEAHY. Mr. President, I ask would like time, and they are welcome very troubling to see critical legislation that unanimous consent that the order for to it if they would come to the floor. I impacts our members be imperiled by a mere the quorum call be dispensed with. have already spoken on this issue at technical procedural motion. The PRESIDING OFFICER. Without some length and reserve my time for The Fund at the heart of S. 852 is financed objection, it is so ordered. rebuttal. by private dollars and it does not make sense Mr. FRIST. Mr. President, discus- At this time, I ask unanimous con- to us that the legislation could have any real sions have proceeded since this morn- sent to have printed in the RECORD a impact in the U.S. budget. We urge you to letter from the International Union of support waiving this false point of order so ing on the point of order and the mo- the Senate can work on this important legis- tion to waive the point of order, and we Painters and Allied Trades, dated Feb- lation. have come to an agreement whereby we ruary 14, and a letter from the Inter- We represent tens of thousands of members will have a vote sometime around 6 national Union, United Automobile, and retirees who have been exposed to asbes- o’clock tonight. Aerospace & Agricultural Implement tos in the workplace. I ask unanimous consent that there Workers of America, dated February We believe the current system is broken now be 3 hours for debate in relation to 13, objecting to the point of order. and must be fixed for the current victims the motion to waive prior to a vote on There being no objection, the mate- and the victims of the future. More than sev- rial was ordered to be printed in the enty-five companies have gone into bank- the motion, with the time divided as RECORD, as follows: ruptcy. What is most disturbing to us is the follows: 40 minutes for Senator SPEC- fact that only 42 cents of every do1lar spent TER, 40 minutes for Senator LEAHY, 40 INTERNATIONAL UNION OF PAINTERS goes to the victims, their widows, and chil- minutes for Senator ENSIGN, 40 min- AND ALLIED TRADES, AFL–CIO, CLC, dren. utes for Senator DURBIN; provided fur- Washington, DC, February 14, 2006. We believe S. 852 offers the best hope of ther that if the point of order is sus- providing fair and equitable compensation Subject: FAIR Act of 2005 (S. 852). tained, the two filed cloture motions on a national basis for those who have suf- DEAR SENATOR: This week, the Senate con- fered or will suffer from the devastating ef- are vitiated. tinues consideration of the Fairness in As- fects of asbestos exposure in decades to The PRESIDING OFFICER. Is there bestos Injury Resolution (FAIR) Act of 2005 come. objection? (S. 852), sponsored by Senators Specter and We strongly support the FAIR Act. For Mr. REID. Mr. President, reserving Leahy. The International Union of Painters these reasons, we urge you to reject the the right to object, I would be the last and Allied Trades (IUPAT) strongly supports budget point of order, which holds the poten- to put forward my proficiency in math, this legislation and urges all Senators to re- ject the technical budget point of order that tial to kill this legislation that is so impor- but I do think that math is wrong. tant to our members. We believe to kill the has been raised against the bill. FAIR Act on a disingenuous technicality Mr. FRIST. Mr. President, I modify The asbestos trust fund that would be es- would be wrong and, as appalling as the cur- my unanimous consent request, that tablished by the passage of this bill will be rent system itself. Our members and their there now be 3 hours minus 20 min- entirely financed by contributions from de- families know the horrors of asbestos-in- utes—2 hours 40 minutes—for debate fendant companies and insurers and will duced disease and the heartache associated with the times as designated. have no impact on the federal budget, there- with it. We also know that the problem is Mr. REID. Mr. President, reserving by invalidating the point of order against the bill. While all of the funding will be pro- not going away soon. the right to object, this point of order Senators Specter and Leahy along with vided from private sources, the actual ad- many others have worked extremely hard which has been raised is a difficult vote ministration of the fund will be housed with- over the past three years to address what al- for Democrats and Republicans. I ex- in the Department of Labor, causing this most everyone concedes is a national crisis. press to my friend, the Senator from technical point of order to be raised. The Senators who oppose this Bill may vote Vermont, that I hope my advocacy IUPAT strongly feels that housing this fund against it in the end, but the members of our here on this issue has not offended any- within the Department of Labor will ensure that this newly established trust fund is ad- Union (International Association of Heat and one. I know there was a time when it Frost Insulators and Asbestos Workers ministered in an orderly and professional did offend my friend from Pennsyl- manner that will be fair to victims. There- Union) deserve to see this bill put to a final vania. I have already apologized in that vote. fore, we urge all Senators to defeat this Sincerely, regard, if in fact I offended him. But budget point of order and any attempt to re- move the administration of this fund from JAMES A. GROGAN, Senator SPECTER, Senator LEAHY, and I the Department of Labor at this stage in the General President. have been in courtrooms long hours, process. JAMES P. MCCOURT, and you have to put all of this stuff be- As this process moves forward, the IUPAT General Secretary-Treasurer. hind you, no matter the feeling at the strongly believes that the FAIR Act rep- Mr. LEAHY. Mr. President, I urge my time. Senator FRIST has been in the op- resents the best opportunity to provide time- colleagues to consider all the work erating room involved in very critical ly, equitable compensation to the victims of

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00015 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1150 CONGRESSIONAL RECORD — SENATE February 14, 2006 asbestos related diseases. We urge you to re- tion, to support cloture to cut off debate on ful asbestos and this vermiculite in ject the budget points of order and any other this measure, and to support passage of the Libby is laced with a particularly dan- obvious attempts that seek to derail the bill overall bill. gerous type of asbestos, called or weaken any of its core provisions. Thank you for considering our views on Thank you for your time and attention to this measure. tremolite. this matter. Sincerely, Asbestos in Libby is tremolite asbes- Sincerely, ALAN REUTHER, tos rather than the more common, JAMES A. WILLIAMS, Legislative Director. chrysotile asbestos. Tremolite asbestos General President. Mr. LEAHY. Mr. President, I ask is a significantly more toxic than unanimous consent that at the appro- chrysotile asbestos. INTERNATIONAL UNION, UNITED priate time the Senator from Montana The Libby tremolite disease process AUTOMOBILE, AEROSPACE & AGRI- gain the floor and that he be granted 10 is different. It’s far more disabling and CULTURAL IMPLEMENT WORKERS deadly than ordinary asbestos, as bad OF AMERICA—UAW, minutes of my time. Washington, DC, February 13, 2006. The PRESIDING OFFICER. Without as ordinary asbestos is and 76 percent DEAR SENATOR: This week the Senate is ex- objection, it is so ordered. of diagnosed patients progress to seri- pected to continue consideration of the Spec- The Senator from Montana is recog- ous disease or death in Libby, MT. ter-Leahy asbestos compensation legislation, nized. Just compare this to chrysotile as- the FAIR Act (S. 852). The UAW strongly Mr. BAUCUS. Mr. President, I rise bestos, where 25 percent of diagnosed supports this critically important legisla- today to speak to you again about a patients progress to serious disease or tion. special place in my state, Libby, MT. death. We are pleased that Senators Specter and People in Libby are uniquely affected Leahy have offered a manager’s amendment It is important for my colleagues to that substantially addresses various con- know that the vote on the budget point by asbestos related disease. They are cerns that have been raised by some unions. of order affects the lives of Libby resi- sick. They suffer from asbestos-related Specifically, this amendment will: dents dramatically. disease at a rate 40-to-60 times the na- Clarify that binding settlements between It affects the thousands of people tional average. victims and defendants will be preserved, not who are sick and the hundreds more And people from Libby suffer from canceled by the bill; who will die. the asbestos cancer, mesothelioma, at Expressly state that civil rights and dis- a rate 100 times the national average. ability claims are not pre-empted by the bill; I ask my colleagues to vote on the Establish a paralegal program to help as- merits of this bill. Budget points of The asbestos has contaminated the bestos victims process claims before the order should not be misused. They whole town. In addition to the mines trust fund, and allow lawyers to collect addi- should not impede consideration of this and the mill, extensive asbestos con- tional attorneys fees beyond the 5% cap for important legislation. tamination is found in homes, in ball work on administrative appeals; The budget point of order should not fields, and in schools. It’s found in the Ensure that individuals with both asbestos be used to hurt the folks in Libby. playgrounds and in the gardens. A re- and silica disease who are sufficiently im- They have suffered enough. cent study even found asbestos con- paired to satisfy medical criteria for levels tamination in the tree bark. III, IV and V will in fact receive compensa- The situation in Libby is unique. The tion under these higher award levels, and asbestos in Libby is different. It is a I have worked very hard with the Ju- will not be required to rule out silica expo- much different asbestos than other diciary Committee and my colleagues, sure as a ‘‘more likely cause’’ of their im- parts of the country. It is much more the chairman of committee, Senator pairment; pernicious. It is wicked, awful stuff. SPECTER, and Senator LEAHY, ranking Allow increased awards for mesothelioma Libby is different because we are member, to tailor a solution that ad- victims with dependent children; talking about community exposure to dresses the unique problems in Libby. Improve the start up provisions so that We are extremely grateful to Chairman non-exigent claimants may continue to re- asbestos—not a few workers. ceive payments from existing bankruptcy The entire Libby community was ex- SPECTER and Senator LEAHY for all trusts, and thus will not have to wait for posed to asbestos because of the their work to protect Libby. They have lengthy periods of time to begin receiving vermiculite mine and mill. worked very hard. They have sent compensation; and Until the mid-1970s in Libby, W.R. staffers to Libby, MT. They have seen Improve the sunset provisions, both by re- Grace milled vermiculite from a moun- it. I am thankful for the staff they quiring an independent audit of the status of tain in Libby. W.R. Grace exposed the have sent to Libby to see how bad this the asbestos compensation trust fund, and by entire community to this deadly dis- stuff is. requiring the administrator’s annual reports I urge my colleagues not to use this to be more comprehensive. ease. The UAW commends Senators Specter and I have been up there. I have been at point of order to kill the bill and to Leahy for proposing these improvements to that site. It is an unbelievably dusty kill all this hard work. Many Senators S. 852. We urge Senators to approve the man- mess. have worked very hard for years to try ager’s amendment. This asbestos bill will make W.R. to find a solution, a way to get com- At the same time, the UAW strongly urges Grace pay Libby residents for the in- pensation to people who otherwise will Senators to vote against the technical budg- tentional harm this company caused not get compensation and who des- et point of order that has been raised against these people. perately deserve it. The people who suf- the bill. Because the asbestos compensation trust fund is financed entirely by contribu- I do not use the word ‘‘intentional’’ fer from asbestos-related diseases need tions from corporations and insurers, there loosely because it was intentional. our help. Let’s stand up for the people should not be any valid point of order Documents show it was intentional. of Libby, MT. Let’s not turn our backs against the bill. The only reason a technical Documents show the company knew it on them. If this bill goes down, this point of order exists is because the asbestos was harmful, that it was sending this Senate will be turning its back on the compensation program would be adminis- stuff out to the people in Libby, and people of Libby, MT. tered by the Department of Labor. This is that many of them would become very I urge my colleagues to oppose the something the entire labor movement has ill and would die. point of order and vote on the merits of supported, to ensure that the program is ad- Not only were mine workers em- this bill. Senators can always decide ministered in a competent manner that is fair to victims. The UAW urges Senators to ployed by W.R. Grace exposed to high later to oppose this bill. There are reject the technical budget point of order, levels of asbestos, but the mill’s ven- many opportunities for Senators to re- both because it could threaten the provisions tilation stack released 5,000 pounds of examine their positions on this bill and that involve the Labor Department in the asbestos every day. Mill workers swept offer amendments. administration of the program, and because dust outside. Often, they could not We should not kill this bill simply on it represents an obvious attempt to kill the even see their broom handles because it a technical point of order. It will un- entire legislation. was so dirty with asbestos. dermine months and months of very The UAW firmly believes that the FAIR They dumped it down the mountain- hard work of well-meaning people to Act is the best opportunity to establish a program that will provide prompt, equitable side. White dust covered the entire try to find justice for people who are compensation to the victims of asbestos re- town. suffering from asbestos. Let’s stand up lated diseases. We urge you to reject amend- The layers of rock where people for the people of Libby and not turn ments that seek to undermine this legisla- found the vermiculite contained harm- our backs on them.

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1151 I urge my colleagues to oppose the We have been here before, and we litigation to delay paying what they budget point of order and vote on the have failed miserably. Why? Because, owe. merits of the bill. The people of Libby unfortunately, the most effective legis- Then there are insurance companies, have been through enough. They need lative solution is also the most politi- some of which fear having to make our help. They need it now. If you do cally impracticable. To solve the asbes- good on the policies they sold. Even not support the bill, say so, but do not tos crisis, conservatives are being after nearly a decade of debate on this hold the people of Libby and the com- asked to turn a deaf ear to many of our issue, no one is certain exactly who is munity of Libby hostage. We cannot do traditional supporters and endorse the responsible, especially with the tangled that. That would be grossly unfair. very kind of Federal structure against web of insurance and reinsurance and I will do whatever it takes to con- which we battle daily—a cumbersome, domestic insurance and foreign rein- tinue fighting for the people of Libby unwieldy program that seems to teeter surance. and fighting for the justice they de- on the brink of obsolescence before it Of course, all of us know there is also serve. even begins. an unacknowledged giant in the room. I wish all Members of this Senate And liberals are being asked to say For nearly half a century, the Federal were able to sit in the living room of enough is enough to one of their most Government of the United States was Gayla Benefield—when I first learned important and influential constitu- one of the biggest consumers and pro- how bad things are in Libby—and look encies and to set aside the one govern- moters of asbestos. Today, people are in the eyes of Les Skramstad. He is a mental institution over which they feel dying from mesothelioma, not because great guy. He is dying from asbestos. they can still exert some control—the of corporate misdeed but because they He worked on the mine. He is not old. courts. It is a legislative formula that worked in the boiler room of a naval He is not an old man at all. He is a seems designed for failure. ship or in a military shipyard or in the middle-age guy. He would go home, em- And then there is the greed. Oh, yes, furnace room of an Army base. The brace his wife, the kids would jump in the greed. For years, Members from Government required asbestos to be his lap. They now all have asbestos-re- both sides have waxed eloquent con- used in buildings and workplaces, in lated diseases. That is common. demning the pecuniary gluttony of one factories, homes, and schools. Yet I ask my colleagues, please, vote to side or the other but, in truth, there is today, as we discuss how best to solve waive this point of order so we can stay so much greed among so many that it the asbestos epidemic, the Govern- on the bill, work on it, and help the has obliterated any chance for an accu- ment’s own responsibility is not to be people of Libby. Let’s work our will so rate debate of the realities we should mentioned. Finally, all of us know the current these folks in Libby can get justice. be confronting. W.R. Grace is bankrupt. People in What are those realities? Let us be tragedy will not abate on its own. Over Libby cannot get justice from them. honest. By this time, we all understand the last 6 years, we have proven con- W.R. Grace has turned its back on that asbestos litigation has swallowed clusively, beyond any shadow of doubt, that while we have stood frozen, in- these people. companies whole, driving them into capable of any, even the slightest re- Let’s say yes to the people of Libby bankruptcy, wiping out jobs, careers, medial act, the avarice of asbestos has and find a way for this to work. pensions, health care, and hope. All of become an industry unto itself. I yield the floor. us know that those who mined asbestos Mr. LEAHY. I suggest the absence of These are the realities we face today. and used it to manufacture products What are our options? Some on my side a quorum, and I ask unanimous con- are long gone, demolished in the first sent the time be equally charged. of the aisle have suggested the adop- wave of lawsuits. All of us appreciate tion of a medical criteria bill, legisla- The PRESIDING OFFICER (Mr. MAR- that today, far too many businesses are TINEZ). Without objection, it is so or- tion that would make changes in the being targeted more because of their applicable litigation rules in State dered. perceived wealth than their presumed The clerk will call the roll. courts. I understand their motivation, culpability. The legislative clerk proceeded to but they have to appreciate that it All of us realize that under the cur- call the roll. falls short with respect to the most rent system, tens of thousands of Mr. HATCH. Mr. President, I ask compelling players in this tragic tale— Americans who are the most sick, the unanimous consent that the order for veterans and employees of bankrupt most deserving, have no place to seek the quorum call be rescinded. companies who have no place to seek The PRESIDING OFFICER. Without compensation. Veterans exposed by relief. It does nothing to address the objection, it is so ordered. their government and hard working manipulation of liability and responsi- Who yields time? The time is con- men and women left sick by their now bility which has become commonplace trolled by the Senator from Pennsyl- bankrupt employers have become the at the State court level. Such a solu- vania and the Senator from Vermont. jetsam of this litigation—cast aside by tion was inadequate 4 years ago, it is Mr. HATCH. I yield myself time from the new potentates of asbestos—a inadequate today, and it will still be the time of the Senator from Pennsyl- small, infamous gaggle of personal in- inadequate 2 years from now. vania. jury lawyers who have manipulated Then again, at least it represents an The PRESIDING OFFICER. Without victims, companies, and the courts to attempt to solve this crisis. For the objection, it is so ordered. divert billions and billions of dollars to past decade, there has been a thun- Mr. HATCH. Mr. President, every their own pockets. Amazingly, not dering silence from too many on the couple of years, this august chamber is even such a massive transfer of wealth other side of the aisle. They are quick given a chance to make good on its from so many to so few is enough. Even to criticize what has been suggested, billing as the greatest deliberative as we speak today, their lobbyists but not once in more than a decade body in the world, to set aside the pre- stand literally feet away, pandering ad- have they proposed their own solution. dictable partisanship that today passes vice, counsel, and contributions to Not once have they come up with one for deliberation and, instead, work to- those who will prevent their despicable idea that might possibly help solve this gether to solve a real problem beset- avarice from being stopped. crisis, for a very good reason: their top ting our Nation. But the greed can not be laid just at hard-money contributors happen to be We face such a moment today. Later the feet of some lawyers. There are the people who bring these suits. this afternoon, each of us will have a also companies who have grown weary This year, they have raised the ca- choice. Either we will vote to address a of paying, not just the wrong people, nard of lost days in court. They are litigation crisis that has made a mock- but paying for their real and technical like people who, when they find a man ery of our judicial system—and dem- complicity. There are corporations who dying of thirst in the desert, give him onstrate that we, as a body, can still want to be free of mistakes they made an empty glass. Now, if by some mir- function when absolutely necessary—or during the merger and acquisition acle you find water, they proclaim, you we will use a clever, parliamentary ma- madness of the late 1990’s. And there can quench your thirst with the dig- neuver to avoid having to face a prob- are businesses that believe they can nity and decorum you deserve. As the lem that is too inconvenient and con- game the current system, relying upon man slowly dies from dehydration, founding to fix without political cost. insurance and the inherent lethargy of they marvel at their own benevolence.

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00017 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1152 CONGRESSIONAL RECORD — SENATE February 14, 2006 They know that a day in court is versally condemned. Let’s stop the de- least—we will be doing the people’s meaningless to a veteran who cannot bilitating games and tactics. For once, business, the people’s work in helping sue his government or an employee let’s give to the bill the same energy people who really have no other place who cannot sue a bankrupt company. and creativity that to date have been to turn. They know a day in court is worthless invested in its downfall and destruc- Above all, we will help our country to those who currently are being paid tion. because we all know what has been only pennies for every dollar of their There are thousands of veterans going on in asbestos litigation around settlements. For nearly a decade, their throughout our Nation who are watch- the country has been horrendously objections have been endless and their ing us today. When the Nation asked wrong. I would like to see us do what is solutions nonexistent. for their service, their blood, they gave right today. So I hope we will vote So, Mr. President, we arrive today at it willingly, without complaint. They against this budget point of order. And a critical juncture. We have rejected did their part. Now it is time for us to I hope we will vote to invoke cloture, the suggestion of a medical criteria do ours. so we can proceed with this bill and bill. Our choice is simple: We can act There are thousands and thousands of hopefully get it into conference. Ulti- or we can hide. We can vote to keep sick working men and women with no mately, that is where we will continue working on the Specter-Leahy legisla- place to turn but us. They, too, are to work on it and see if we can make it tion, or we can vote for the budget watching. They ask for our assistance, more perfect and resolve some of the point of order and stop the legislation not excuses. They have asked for can- conflicts and problems people feel they dead in its tracks. It is a clever tactic, dor, not cold calculation. They ask for have with this bill today. I have every using the mantle of fiscal responsi- compassion, not clever procedural confidence in the chairman and rank- bility as an excuse not to legislate. Of ploys. ing member that they will work to do course, leaving the asbestos crisis un- If there is any justice, we will be re- exactly that. They have been doing it resolved is the ultimate act of fiscal ir- membered long after we have left elect- every day I have worked with them, responsibility. And, since the Specter- ed office, not for the unfulfilled prom- and I am very proud of both of them. Leahy bill does not require 1 cent of ises we have made or the good inten- Mr. President, I yield the floor and Federal money—this budget point of tions we have so readily proclaimed suggest the absence of a quorum. order is a sham. And we all know it. but for the votes like the ones we will The PRESIDING OFFICER. The Or we can hide behind a cloture vote, soon cast. For, in truth, this vote is clerk will call the roll. knowing that without cloture, the bill about more than asbestos. It may well The legislative clerk proceeded to will be pulled from the floor and the signal the last chance this body will call the roll. status quo—the ridiculous and irre- have to be productive, to break free Mr. CARPER. Mr. President, I ask sponsible status quo—will be preserved. from our respective orthodoxies and unanimous consent that the order for In today’s world of relentless stalemate legislate for the public good. Did any of the quorum call be rescinded. and partisanship, it is a vote easy to us really seek public office so that in The PRESIDING OFFICER. Without explain and justify. But each of us also the face of a crisis, we could hide be- objection, it is so ordered. knows these measures are nothing hind a budget point of order or a clo- Mr. CARPER. Mr. President, I ask more than procedural subterfuges— ture vote? unanimous consent that 10 minutes of some parliamentary arcanum designed The time has come to reveal who we Senator LEAHY’s time be yielded to me. to confuse the public about what is are, who we have become. Can the Sen- The PRESIDING OFFICER. Without really happening. The Senate has failed ate legislate in an area in which the objection, it is so ordered. the country on this issue before. The Supreme Court has said we need legis- Mr. CARPER. Mr. President, in the time really has come to act. lation—three times? The real frustra- next several hours, I expect we are The Specter-Leahy bill before us is tion with this institution is not a lack going to have a critically important by no means without flaws. All of us of ethics or the unseemly tangle of lob- vote, a vote with respect to how we are admit that. All of us understand that byists, Members, and campaigns. No. going to proceed or not proceed with the legislation is—like major pieces of Our real failing is our collective trepi- respect to the asbestos litigation re- legislation at a similar juncture—a dation, our fear of stepping free of the form. There is more at stake than a work in progress, the inevitable prod- pack to work together to solve real parliamentary squabble. This is a ques- uct of a political process that to date problems without concern for political tion to say whether we are going to has been as dysfunctional as it has advantage or personal benefit. continue to have a system where the been prolonged. Yet even with its If we cannot find a common will to people who are sick and dying from as- shortcomings, the legislation rep- address something as pernicious as the bestos exposure are going to be quickly resents the best hope, the most salient asbestos litigation crisis, then one has compensated for the harm that has chance for an effective legislative solu- to ask what real purpose this legisla- been done to their bodies. And there is tion. And we will not even have a ture serves. Too often, we find it con- a question as to whether companies chance to get that far if we do not pass venient to act like mice. Today, our will be bankrupted by the dozens, and it on the floor of the Senate. country needs lions. Let us not give it you continue to see that sort of thing We know this is step one—actually mice. Vote against the budget point of happen. There is a question of whether step two in at least a four-act play. order. Vote to invoke cloture. And, for we are going to continue to see a situa- The committee passed it out of the once, let us consider fixing the asbestos tion where a majority of the moneys committee. If we can succeed in pass- crisis with the honesty, candor, and in- that are paid out for damages end up ing it out of the Senate, the House has genuity the American people deserve. not in the pockets of those who have to pass its bill, and then we have to go Mr. President, I compliment the dis- been harmed or their families but in to conference, and then the final play tinguished Senator from Pennsylvania the pockets of others. will be a vote in both Houses of Con- and the ranking member from The status quo, in my judgment, is gress. In all of those steps, I have seen Vermont. This has been a monu- not acceptable. We have an oppor- our chairman and ranking member mentally difficult bill to bring to the tunity today to take an important step willing to compromise and resolve floor. As I say, this is step one in prob- toward improving that situation. The problems as they come up, as col- ably a five- or six-act play. We do not legislation before us today has evolved leagues have brought them up. They have to make it perfect here; we just over the time that I have served in the cannot blame the distinguished Sen- have to do the best we can. The House Senate. A question that has been raised ator from Pennsylvania or the distin- then, if we pass this bill, will have to again and again, as it should be, is: Is guished Senator from Vermont in this do its work. Then conference commit- the money that is going to be set aside matter. tees will have to meet together, and we in a trust fund that we propose to cre- I beseech my colleagues, do not let will have to do the final work on this ate adequate? this bill die today. Do not end what bill after listening, during all of that Earlier in our deliberations, the com- could very well be the last chance we time, to complaints, suggestions, good mittee of jurisdiction, as they wrestled have to solve a crisis we all have uni- ideas, bad ideas, but at least—at with this problem, trying to figure out

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00018 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1153 how much money to ask of the defend- What if the moneys are not enough? to make sure their $3 billion-a-year ob- ant companies, how much to ask of What if $140 billion is not enough? ligation is being met. What happens, their insurers—initially, I think What do we do? Some have suggested though, if, despite that discretion that thought was given that a $90 billion that we are going to go right into the might be used and the ability to bor- trust fund would be adequate to com- taxpayers and ask them to pick up the row money for short periods of time pensate people whose breathing has tab. That is not the case. What will we from the Federal Finance Bank—what been impaired by exposure to asbestos. do? First of all, there is a recognition if it becomes clear that there is not Over time, we have seen that number that during the first 5 years of the enough money coming into this trust raised from $90 billion to $100 billion, trust fund, when there is going to be a fund to pay the claims that are going to $110 billion, to $120 billion, to $130 lot of demand on the funds and moneys to be needed? Do we leave people, the billion, and now to $140 billion. Still are going to be paid in by insurers and victims, the folks who are suffering the question is asked, as it should be: defendants, there is going to be a from an impairment of their breathing Is even $140 billion adequate? shortfall. That is freely acknowledged, who have been exposed to asbestos—do CBO has been asked to be the arbiter I think, by everyone. we hang them out to dry? No. in this debate. They have come and tes- With that expectation, there is an op- tified a couple of times before the Judi- Under the language of the bill—and portunity spelled out in the bill for the this is in large part due to the work of ciary Committee, and I guess they have fund administrator to go to the Federal provided letters as recently as yester- Senator DIANNE FEINSTEIN—if it be- Finance Bank to borrow moneys comes clear that people are not going day and today to attempt to deal with against future revenues of the fund— this issue and this question: What do to have a chance to be made whole by payments by defendants, payments by the trust fund because it runs out of we do if we run out of money, if the insurers—to seek those from the Fed- $140 billion is not enough—with the money, we revert back to the tort sys- eral Finance Bank. I might add that moneys coming in over the next 30, 40 tem. And folks who have a claim, if the cost of Federal funds probably years, if it is not sufficient to meet the they are not going to get satisfied available through that funding mecha- demands of the claims that ought to be through the fund itself, will go back nism is probably 5 percent in today’s paid? Concerns have been raised, sort into the tort system. They can go back of leading to this budget point of order, environment, maybe even less than into the State where they live, and that in the end the responsibility may that. Some have said that we are so they can go back to the tort system in fall back on the taxpayers. It is a ques- short, so far off target that we are the State where they were harmed or tion that ought to be raised and a ques- looking for a shortfall of $150 billion or they can go back into Federal Court. tion that ought to be answered. $200 billion or $300 billion over the life of this fund. There is no obligation that falls on There is nothing in this bill that is the taxpayers. I believe the committee before us today that stipulates that Let’s say, in the first 5 years, there is has done a good job of trying to make taxpayers should pay for any shortfall a shortfall, and say it is $10 billion a sure that at the end of the day the that may occur if the legitimate de- year. I don’t know if that is right; it money needed to pay these benefits is mand on funds exceeds the amount of may be high or low. So if there is a $10 adequate. And if, for some reason, it is funds paid into this trust fund that we billion shortfall and the fund adminis- not, they provide a number of steps propose to establish. There is nothing trator has to go to the Federal Finance along the way that could be taken to that stipulates that taxpayers would Bank and borrow the money—$10 bil- provide the funding that is needed, ei- have an obligation or should have an lion for year one and $10 billion for obligation. In fact, the opposite is the year two and up through year five, at a ther in the first 5 years or in the years case. The legislation clearly stipulates rate of 5 percent a year for 5 years; how subsequent to that. that any obligation to people who are much money would that amount to If, in the end, it is recognized that harmed that exceeds the amount of with respect to the debt service? Well, this dog is not going to hunt or this money in the trust fund would not be 5 percent of $10 billion is about a half- fund we are creating is not up to doing borne by the taxpayers. CBO is not ab- billion dollars through year two. So it the job of meeting the need to pay the solutely sure that $140 billion is the is roughly $2.5 billion at the end of the claims, we go back into the tort sys- right number or $130 billion or $120 bil- 5-year period. That is not a debt serv- tem, and folks will have the oppor- lion or maybe even $150 billion. But in ice cost of $50 billion or $100 billion or tunity, in their State and their courts reading the different letters they have $150 billion. That is a debt service cost or in the State where they were dam- submitted, and reading their testi- of about $2.5 billion. That is a reason- aged or in a Federal court, to be made mony, they believe $140 billion is in the able amount of money that may be whole. Is this perfect? No, it is not. I ballpark. needed to borrow from the Federal Fi- will tell you this. From the day we What if they should be wrong? What nance Bank. started this bill about 2 years ago, 3 if more money needs to be funneled Who has to pay that back? The folks years ago, it has sure gotten a lot bet- into the trust fund to meet legitimate who are paying into the trust fund ter. My guess is that it is going to get claims? What does the trust fund do? have to pay it back. The insurers and better still. The only reason this is a budgetary the defendants have an obligation to I thank Senators SPECTER and LEAHY issue at all is because the moneys paid repay the money, through the fund ad- for their willingness to listen to us and for by insurers and by defendants are ministrator, back to the Federal Fi- work with us and develop amendments. going to go into a trust fund estab- nance Bank. They have that responsi- If you look at the managers’ amend- lished and administered by the Depart- bility. ment, they have tried to accommodate ment of Labor. That is why it is con- What if the amount of money that is the concerns that lot of us have raised. sidered even remotely a Federal obliga- coming into the trust fund is not re- Are there more amendments that could tion—because of the desire on the part paid—and each year there is an obliga- be offered? You bet there are. My hope of some, including those representing tion, I think, of $3 billion a year for the folks who have been injured, that the defendant companies that had an obli- is to be able to support some of those, Department of Labor, that has been gation and have been paying these and I suspect some of my colleagues able to do this sort of thing and has ex- claims in the past—cumulatively and will as well. perience in dealing with these kinds of in the aggregate they have to pay I will tell you what is not acceptable. issues, should play a role. It is because something like $3 billion a year into A system is not acceptable where we the Department of Labor is playing a the fund. What if they are not paying have people who are harmed, where role as a conduit through which mon- enough and they have an obligation of their breathing is impaired and they eys are paid from the private sector, $90 billion over 30 years? Maybe they are sick and dying, and for them not to through which moneys are paid to are only paying $2.5 billion a year. be able to get the money they deserve those who are harmed, that there is What can be done about that? and their family deserves quickly. even a question of whether a budget Under this bill, the fund adminis- What is not acceptable is a system that point of order can be raised against the trator has the discretion to impose a exists—and for years it has existed— flow of funds or against this bill. surcharge on the defendant companies where people who have been exposed to

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00019 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1154 CONGRESSIONAL RECORD — SENATE February 14, 2006 asbestos, whose breathing is not im- That is not to say there is no prob- asbestos but were exposed to it because paired, and who may never be im- lem for asbestos victims today. Pro- they lived near factories, mines, and paired, for them to be receiving pay- viding them with just compensation is processing plants with asbestos. This ments and siphoning off money that something they deserve. If we were certainly was the case in Libby, MT, ought to be going to people who are able to increase the size of the fund and and residents of that town are taken sick and, in many cases, dying from as- include all of the victims who deserve care of in the bill. That is a wonderful bestos-related illnesses. What is not ac- to be compensated, that would be a thing for them. Lord knows there is ceptable is a situation where, in a day good solution. I know this is what suffering there. The exposure require- and age when we are losing manufac- many honorable and hard-working Sen- ments for anyone who lived or worked turing jobs not by the tens of thou- ators on both sides have tried to do, for at least 12 months within 20 miles sands or by the hundreds of thousands but the current legislation doesn’t get of the mining or milling facility in but by the millions, for us to turn our us there. Libby are waived, so the people in backs on what is a hard-fought and, I Asbestos kills 10,000 Americans every Libby are taken care of, and I am think, well-crafted, much-improved year. Such a large number of deaths is happy for them. But the bill fails to proposal to get us to where we need to hard to comprehend, so let me tell my provide the same relief to people in at go. colleagues about just a few of the vic- least 41 other communities across the With that, Mr. President, I yield tims in California and why this bill country who live near a plant that back whatever time I have not con- will hurt them, not help them. processed vermiculite from Libby. How sumed. Here is a picture of Rebecca Mar- is that equal justice under the law? It The PRESIDING OFFICER. Who tinez. Rebecca is the wife of Margarito also fails to protect people who lived yields time. who lived in Baldwin Park, CA, and she near other mines or plants that re- The Senator from California is recog- is pictured here on the right. Margarito leased asbestos into the air. nized. worked as a plasterer and Rebecca For example, Santa Ana is one of Mrs. BOXER. Mr. President, what is would clean his asbestos-covered roughly 23 cities in California that re- the rule? Can I speak for up to 15 min- clothes when he came home, breathing ceived more than 1 million tons of utes or 10 minutes? in the dust as she shook them out and Libby’s vermiculite. Yet this bill would The PRESIDING OFFICER. The Sen- did the laundry. They were never compound the injuries to affected com- ator can take time from one of the two warned about the dangers of asbestos. munity members by largely barring Senators who hold time. Rebecca was diagnosed with mesothe- nonoccupational exposures. As I said, Mrs. BOXER. Mr. President, I ask lioma in 2002, as we all know, a deadly no one can call this justice. unanimous consent I be yielded 10 min- cancer caused only by asbestos. She The bill also fails to adequately ad- utes of Senator DURBIN’s time with the died 4 months later, leaving behind her dress another problem important to my hope that I can finish in that time. If husband and three children. State, as well as the Nation—naturally not, I will ask for another 5 minutes. Her husband has spent more than occurring asbestos. I am going to show The PRESIDING OFFICER. Without $50,000 on a pending wrongful death you a map of California where we show objection, it is so ordered. suit. However, if this bill is passed, he the counties containing naturally oc- Mrs. BOXER. Mr. President, I am will never get to go to court and face curring asbestos. Forty-four of Califor- going to support the budget point of the people who are responsible for his nia’s 58 counties are known to have order on S. 852. I want to explain why wife’s death. This bill will force him naturally occurring asbestos. The prob- I am doing this. First, I want to say if back to square one, and he will face, lem, however, is not California specific. anybody has listened to Senator KENT potentially, years of delay. And here he Twenty-nine States are known to have CONRAD talk about what is going to is, a widower having to raise his kids. naturally occurring asbestos. happen in the outyears with this bill, For those who are about to resolve This asbestos can threaten public the trust fund, if anyone listened to their court cases, I see no reason to health. This shows in red where the him, it seems very difficult to me to force them into a trust fund process. It States have this problem with natu- vote against this budget point of order. is wrong. People have invested time in rally occurring asbestos. In 2005, a Uni- We are on the edge of passing a bill the court system, and this bill will rip versity of California-Davis study found that is masquerading as a solution to a them out of the court system just as that the risk of mesothelioma de- deadly problem, and asbestos victims they are about to get justice. creased by 6.4 percent for every 6 miles need to know the truth. Frankly, they This is a picture of Georgina Bryson. further away a person lived from a nat- were lied to once when companies ex- She lived in Riverside, CA, when she urally occurring asbestos source. posed their workers to asbestos with- died of mesothelioma. From 1962 until Under the bill, people who get a ter- out telling them of the danger, and I 1980, Georgina lived downtown from minal illness from naturally occurring don’t want to lie to these victims two cement companies that used asbes- asbestos may take their case to the again. The simple truth is there are tos to manufacture their products. medical exceptions panel, but there are not sufficient funds in the trust fund to Georgina was also exposed to asbestos three problems. compensate all the current and future when she lived with her dad who First, I want to thank my colleague, asbestos victims. We should not com- worked with gaskets that contained as- Senator FEINSTEIN, for getting that pound the problem of the past by offer- bestos. into the bill. At least they can go to ing false promises and cutting victims Georgina was only 40 years old when she this special panel. But there are prob- off from help. lems. First, the level of funding estab- I know there are many who don’t died from mesothelioma. Her family filed a wrongful death action and, to the credit of lished by the bill for the trust fund, as agree with what I have just said, but I the California court system—to the credit of I said before, is insufficient to pay for think if, again, you listen to Senator the California court system—the suit set- the claims expected to be filed with the CONRAD, and you go back to see what tled. The cement plants agreed to pay 90 per- exceptional medical claims panel. It is has happened to other trust funds, I cent of the award, recognizing that they insufficient. There wouldn’t be funding think it is very clear there are not were primarily responsible for the death. left. enough funds in this trust fund. Some The problem with the legislation be- The CBO stated in a letter on Feb- estimates are it is perhaps 50 percent of fore us is, if Georgina’s family didn’t ruary 1 to Senator SPECTER that: what it ought to be. have access to the courts, and they There is a significant likelihood that the Some say that people will go back to filed the claim with the asbestos fund, fund’s revenues would fall short of the court if there are not enough funds. I they could receive possibly no com- amount needed to pay valid claims, debt know that is a very well meaning part pensation. Because Georgina’s asbestos service, and administrative costs. of this bill, but it isn’t as easy as all exposure was not work related, she This is, in part, because the CBO ex- that. It is going to be very difficult for lived downwind from the cement manu- plicitly stated that it did not include people in the future years. I think we facturers, she would not meet the occu- ‘‘the costs of any exceptional medical are going to see more companies claim pational requirements of the bill. claims’’ in its estimate. What kind of they are bankrupt. There will be a lot There are many people in California chance do my people have for being ex- of lawsuits. and elsewhere who never worked with posed to naturally occurring asbestos

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00020 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1155 and the people who live in all of these on this trust fund are going to find out be considered in conference. I do not States? that it isn’t what it is cracked up to be. think that serves the interests of the This isn’t justice. If we want to do The bill promises the Moon, and I don’t victims of asbestosis or other asbestos- justice, we need a bill that is suffi- even know if it will deliver a sliver of related diseases. ciently funded through the trust fund the Moon. I want to talk about Libby, MT, I to take care of all of our people, not I just want to say to those who are guess, because I live there—not in just some of our people. following this debate who are suffering, Libby, but in Montana. Many of my The Democratic staff of the Budget I honestly believe that everybody great friends live in Libby, MT. Fami- Committee predicts a shortfall in the thinks, everybody thinks they are lies are watching this together in their trust fund of $150 billion or more. That working for you, but what I say is this: living rooms today, watching this is $150 billion that taxpayers may have If the system is already working for broadcast on C–SPAN. Televisions are to pay to bail out the trust fund. It is you, let it work for you. Let’s not set up in restaurants and dining rooms easy to say: Oh, you will just go back promise you the Moon and not be able and hotel lobbies so people can con- to the courts. But that is a time period to deliver it. Let’s make sure there is tinue to see what happens here as they in which we don’t know what the situa- justice for people who live, say, down- go about their day. tion will look like, more companies wind in California from a company I have been in close contact with the will claim bankruptcy, and people will that received the product from Libby. community leaders and people directly then have to move from the trust fund The people in Libby are taken care affected by health problems on a daily over to the courts. It is a giant night- of. The people in my State and many basis. For some of my colleagues, this mare. other States are not taken care of. debate is about technical details of a Second, it is not clear that the com- This isn’t fair. What happened to equal very complicated bill. For people in panies paying into the fund should be justice? What happened to fairness? We Libby, of course, it is life or death. the ones responsible for compensating can do it. People of goodwill on both I want to show some pictures that people who become sick from naturally sides can do the right thing. This isn’t have been sent to us. We want to give occurring asbestos. Construction com- a question of this bill or no bill. you an idea about how important this panies disturbing naturally occurring So I honestly think that by sup- is. asbestos may expose residents to fi- porting this point of order, first of all, Behind me—I don’t know whether the bers, but those companies are generally we are being honest with the people. cameras are picking it up; I assume not the ones paying into the fund. So We are being honest with the people. they are from somewhere—is a picture this makes no sense at all for people We are saying there is not enough of a baseball field. This field was built who live in areas with naturally occur- money in this trust fund and the tax- in 1959. You have to remember, this ring asbestos. They are different de- payers are going to have to bear the vermiculite mine started in 1924. For fendants that need to step up and pay burden and who knows what will hap- many years we didn’t know anything compensation. pen at that time. With the kind of defi- about asbestos. We didn’t know any- Third, there is no deadline by which cits that are being racked up here, with thing about the problems it caused. the medical exceptions panel must act the kind of national debt that is being But we know if you are exposed, these on a claim. Given the number of people racked up here, where is the money diseases develop over time, and it takes who may file claims with the panel, it going to come from? a long time. could be years before the panel makes Some say: Go back to the court sys- This baseball field was built in 1959, a decision on a particular case. Is this tem. That is a very complicated mat- next to the processing plant. For years, better than the current court system? ter. Every State has its own way. In the children of Libby played baseball Mr. President, I ask unanimous con- some States it works well, like Cali- in asbestos-contaminated fields while sent for just 2 more minutes. fornia. In other States, it doesn’t. So I their siblings played on actual The PRESIDING OFFICER. Without urge my colleagues, yes, to protect as- vermiculite piles of asbestos next to objection, it is so ordered. bestos victims who may not be so the fields. It is unbelievable. The Mrs. BOXER. Mr. President, I don’t lucky as the people in Libby. Let’s former Governor of Montana was raised think it is better than the current take care of the people in Libby, and in Libby, MT. They thought it was a court system, certainly not in my let’s take care of all of the victims and lot of fun because it was slick and, boy, State. In California, we have an expe- potential victims and vote against you could slide a long way. The high dited processing of suits for sick plain- waiving this budget point of order. school running track and football field tiffs. Roughly 22 States have proce- A budget point of order lies against were built on tailings from that mine dures that ensure mesothelioma vic- this bill. The Parliamentarian has told site. For over 25 years, children have tims and those with other very serious us; the CBO has told us. Let’s do the been directly exposed to tremolite- cancers have their cases heard in a honest thing. Let’s support the budget laced tailings which were used to line year or less. In California the courts point of order, go back to the drawing the track and, of course, the football can hear such cases within 120 days. board. Let’s take care of these people field. There are States where the courts and do it in the right way. Maybe I can consider myself lucky; I work, and they should be allowed to I yield the floor. never had to referee a football game up continue their good work without get- The PRESIDING OFFICER. Who there and I had some 20 years ref- ting taxpayers involved in this trust yields time? ereeing that game in that State. fund. Where it is working, do no harm. Mr. BURNS. Mr. President, I come to The saddest of all is it is all now Let it proceed. the floor today, and after a discussion coming home. It is now being identi- Most, if not all, of us could support over lunch about Libby, MT, and some fied. This is the photo of 250 crosses at an asbestos trust fund that is fair to of the provisions found in this legisla- Libby, MT, memorializing those resi- victims, but this proposal is not. I have tion, listening to the distinguished dents who have died from asbestos-re- gone through the ways that it is not. I Senator from California, I think we lated diseases. Mr. President, 250 is 10 have shown my colleagues the faces of had better answer some of the ques- percent of the entire population of the those who would be harmed or would tions that are being asked about this. town. Gayla Benefield told my office have been harmed if this trust fund As you know, I am here on the floor recently about how much this matter were in place. again, joining Senator BAUCUS, my col- affected her life: We can fix this. We can make the league, urging our colleagues not to Slow suffocation from tremolite asbestos trust fund bigger, that is one solution, support this budget point of order. We is a terrible way to die but worse yet, watch- or we can say in the 22 States that are have to deal with this terrible thing. If ing our parents die and then, watching the dealing with this, let them deal with it. the point of order on the bill is success- looks on their grandchildren’s faces when we tell them we have the disease is worse than Let’s grandfather in the cases that are ful, the bill dies and we will get no bill dying. already in the system. at all. There will be nothing to go to To watch one person die from the effects of I am very fearful—very fearful—that final passage, nothing to go to the our fiber is horrific. But to know that your a lot of people who are going to depend House of Representatives, nothing to own fate is no better, and that you cannot

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Let them delib- bankrupt over asbestos lawsuits. islation passed and to do the right erate. Let them carry on this argu- If we picked up the paper and read in thing—get something to conference ment. Let’s get to conference and let’s the morning that 60,000 jobs had gone and get something to the House, be- do what is right for the people who to China, there would be speeches made cause a lot of these folks will not live have been impacted by asbestos and as- all across this Senate floor about long enough to ever hear their case bestosis and the diseases related to it. whose fault it was. It will be our fault pleaded in court. I yield the floor. if we do not solve the asbestos problem Jim has been watching these debates The PRESIDING OFFICER. The Sen- and 60,000 more jobs are lost. Those are with his family. Yesterday, Jim’s son, ator from Tennessee. real, good-paying, manufacturing jobs Dr. Steve Davidson, wrote me a letter Mr. ALEXANDER. Mr. President, I that will be lost if we do not solve the about some of the statements that thank the Senator from Montana for asbestos problem. have been made here on the floor. He his impassioned advocacy for the peo- My State of Tennessee has its share said: ple of Montana. I want to make sure he of those jobs. The auto industry, as an As a past board member of our local hos- has completed his remarks. I have example, has one-third of the manufac- pital and as a past board member of our fed- plenty of time to wait if he has not. turing jobs in Tennessee. We are glad erally funded community health center, I Mr. BURNS. I completed. I yield to that Saturn and Nissan have come to have seen firsthand the impact of asbestos the Senator from Tennessee. our state, and that we have gone from exposure on my hometown. As a health care Mr. ALEXANDER. I wish to add to a handful of suppliers to nearly a thou- provider, I am reminded daily of the price those remarks. This morning I met sand. But those companies, those sup- that has to be paid by my community. And with a number of Tennesseans here in as a son who is helping his father cope with pliers, those jobs are at risk if we do mesothelioma, I must watch him struggle an event we call Tennessee Tuesday. It not solve the asbestos problems. with his mortality. My father worked at the is a meeting we have every Tuesday. The FAIR Act is about America’s Grace facility for several months in the Senator FRIST and I host it for Ten- role in the world. It’s about our com- 1950s. nesseans who are visiting Washington, petitiveness. The President talked This is way back in the 1950s. Now, and it is a chance to let them know about that in his State of the Union later, this terrible disease surfaces. what we are working on. Address. He talked about it in Nash- We rely on Congress to do the will of the I talked with them about asbestos. ville. He is now talking about it wher- people. Since the Grace bankruptcy was ig- One of my friends on the other side of ever he goes. We are confident in our nored by Congress, we must now seek a rea- the aisle began this debate, which ability to lead the world. We know we sonable remedy. should have started earlier, by saying: are only 5 percent of the people and There exists no empirical medical data to Why are we talking about asbestos that last year we produced 30 percent support the assertion on the Senate floor when we have a war, when we have of the wealth. We know the rest of the that ‘‘Libby is like East Hampton. . . .’’ I and my community would appreciate ac- deficits out of control, when jobs are world is eyeing that statistic and say- cess to any facts to support such a state- going overseas, when kids are not ing, If American brainpower and eco- ment. In their absence, we would appreciate learning in schools, when Medicaid nomic conditions produced a growth an apology from the Senate floor. These re- costs are rising and prescription drug economy that gives Americans 30 per- marks seek to minimize the humanity of the benefits are not being delivered as effi- cent of the wealth for 5 percent of the crisis in Libby and my Father’s struggle. ciently as we would like? Why are we people, we want to emulate that. So we It is something when it touches your talking about asbestos? have to work hard every day to make life. I think we have an obligation to say sure we create an environment in this We are uncertain if your remarks were to the American people, and to our- country in which American businesses made from ignorance or malice. Please help selves, we know exactly why we are can grow the largest number of new us to understand your position. talking about asbestos. We are talking American jobs. The last thing we want He is asking the Senate to clarify about asbestos because it has to do to do is lose American jobs. some of the statements that were made with tens of thousands, maybe hun- How do we do that? We keep costs that seem unfair to some of the folks dreds of thousands of American jobs. down. We stop runaway lawsuits. We who are victims of the situation We are talking about asbestos because solve the health care problem. We in- around Libby. it has to do with whether we are going vest in science and technology because This is a photograph of Vernon Riley to retain our preeminence as the leader 85 or 90 percent of our new jobs since putting flowers on his wife’s grave. in the world in competitiveness, wheth- World War II have come from advances Darlene Riley never worked at the er we are going to be able to lead the in science and technology. That is why mine or had anything to do with it. world in terms of the standard of living we have introduced the Protecting She died of the most severe type of as- we have. We are talking about asbestos America’s Competitive Edge or PACE bestosis in 1995. because we have thousands of Ameri- Act in this Senate, where we have 31 The fact is, no other asbestos loca- cans who have been hurt and who de- Democrats and 31 Republicans who tion in the United States created as serve compensation and who cannot be have signed onto legislation rec- widespread a catastrophe as is in compensated. ommended by the National Academies Libby, MT. To suggest that enclosed Asbestos is right where it ought to that would invest 9 billion new dollars asbestos treatment facilities are the be. It is at the top of our agenda. We this year in keeping our advantage in same as an open-pit mine that blew have Democrats and Republicans work- science and technology. We want to dust and the winds took it for miles ing together to solve the problem be- stay competitive. and miles into the air since 1924, and it cause it is about jobs, it is about Amer- According to a report from NERA rained down on a town—to say that is ica’s role in the world, and it is about Economic Consulting, ‘‘Asbestos litiga- not different than any other situation Americans who have been hurt and who tion has damaged U.S. competitive- in this country is not true. have no way to be compensated unless ness.’’ For example, if you are worried I think it is important that we pass a we decide to help them. about asbestos lawsuits, you want to bill. That is why I urge my colleagues Let’s take the first point. The FAIR put your plant somewhere overseas and not to support this point of order be- Act, as we call it—and that is a good your jobs somewhere overseas, and we cause it will kill this piece of legisla- name for it—is about jobs because lose out. tion. How many hours have all of us since the 1980s, more than 70 companies Productivity growth in the United put in, trying to pass something that have gone bankrupt as a result of as- States, according to that report, in as- would give justice to people who right bestos lawsuits. These lawsuits have bestos-affected manufacturing sectors

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1157 has lagged behind growth in their cause they see this as a problem of jobs are getting no help while some people counterparts in other countries by half and competitiveness and Americans who will never get sick are getting a percent. who have been hurt. awards. Frankly, that isn’t fair or eq- We Tennesseans worry about that be- Where do we come at this point uitable. cause we like manufacturing jobs. As I today? We have a budget point of order So I have been sympathetic to the said, one-third of them are auto jobs, against the bill. If the point of order creation of some kind of a trust fund, and many of them are chemical jobs. succeeds, the bill fails. Those of us who and I know that the chairman and We don’t like lagging behind. We like believe it is our job to solve the asbes- ranking member of the Judiciary Com- our standard of living. That report says tos problem won’t get to take the next mittee have worked very hard to de- we lose $51 billion annually, with a step to actually debate the bill and see velop the trust fund proposal now being total loss of $303 billion. The dollars if we can bridge our differences and considered. are hard to comprehend. But jobs and save jobs, improve competitiveness, I also know that the motion to waive competitiveness are what we are talk- and help Americans who have been the Budget Act is considered by some a ing about here. hurt. I urge my colleagues not to let technical issue. But some recent stud- Finally, the FAIR Act is about com- this point of order kill the asbestos leg- ies, including one done by my col- pensation to Americans who have been islation because we in Congress are the league Senator CONRAD, the ranking hurt. We say the words ‘‘compensation only ones who can solve this problem member on the Senate Budget Com- to victims,’’ but that doesn’t really say properly. mittee, suggest that the potential it as plainly as ‘‘Americans have been I respect the fact that the point of budget exposure to the United States hurt.’’ order is being made. But a point of Government is substantial. Here is a fact that got my attention. order, as the Senator from New Mexico, The Conrad study indicates that this This is one reason I am speaking about the former chairman of the Budget trust fund could fall short by more this issue. This is the reason I am a co- Committee for so long, has said, than $150 billion, which in the out sponsor of the bill offered by Senator doesn’t automatically kill a bill; it just years will put powerful pressure on the SPECTER and Senator LEAHY. Seventy says to us: Stop and think; consider the Congress to fund the shortfall. billion dollars has been spent on asbes- point of order. And when we consider This country has a Federal budget tos litigation through 2002. Asbestos the point of order, which is designed that is increasing its indebtedness by litigation is litigation to help people for the purpose of making sure we $704 billion in this fiscal year alone. We who have been hurt, who are going to don’t slip in the legislation provisions also have a trade deficit of $720 billion die, in many cases, from asbestos. which will cause big expenses in future this year, for a combined $1.4 trillion Nearly 60 percent of that $70 billion years, we find this doesn’t cause big, debt problem. Our country’s economic was spent on attorney’s fees and other unanticipated expenses in future years. future is threatened by this massive transaction costs. In other words, the In fact, a February 13, 2006 letter from debt, and I am reluctant to put in place people who are hurt got 40 percent of the Congressional Budget Office con- anything that might substantially add the $70 billion. That is not right. cludes that ‘‘this legislation would be to that burden. In addition, it is taking up to 3 years deficit neutral over the life of the The prospect that this trust fund for victims to collect their compensa- fund.’’ So the point of order deserves could fall far short of that which is tion as a result of complex litigation. respect, but this bill does not deserve necessary to reimburse asbestos vic- Some businesses have gone bankrupt, to be killed by a point of order. tims makes it a very real possibility so you don’t collect from them. Some I implore my colleagues. We have a that the Federal Government would be people have died, so they are in no po- job to do. This is a tough piece of legis- forced to add to its debt by covering sition to collect. The legal process has lation. We are divided on our side. We the extra liability for those asbestos taken too long for them, and 60 percent have some who like the trust fund, but victims. of the money that is collected is going we have other Members who like an- Until or unless those issues are re- to the lawyers. other approach. There are some Demo- solved, I feel that the best course is to This is not about plaintiffs’ lawyers. crats who like the trust fund and some support the point of order in the hope Half the money goes to defense lawyers who prefer another approach. I believe that the authors of the legislation can and half to the plaintiffs’ lawyers. it is our responsibility to the people resolve these differences and offer us Whose fault is that? I don’t know who put us here to solve this big prob- greater confidence that this legislation whose fault it has been, but I will tell lem. It will save tens of thousands of will not add to the crushing debt that you whose fault it will be if we allow jobs, it can help tens of thousands of America already faces. this to continue. Former Chief Justice Americans who have been hurt, and it Therefore, while I will support the Rehnquist and Justice Ginsburg both will help to assure America’s pre- point of order, I will continue to work said it to us. They said: We can’t fix eminence 10, 15, 20 years from now. with my colleagues to find a solution this problem in the judiciary; the Con- I urge my colleagues, don’t let the that addresses this important issue. gress needs to do it. In one case, the point of order kill the bill and kill our Mr. GREGG. Mr. President, section Supreme Court said: opportunity to solve this problem. 307 of H. Con. Res. 95, the Concurrent The elephantine mass of asbestos cases . . . I thank the Chair. I yield the floor. Resolution on the Budget for Fiscal defies customary judicial administration and Mr. DORGAN. Mr. President, we are Year 2006, permits the chairman of the calls for national legislation. voting on a motion to waive the Budg- Senate Budget Committee to make ad- That is us. That is what we are here et Act in order that the bill creating an justments to the allocations and aggre- for. That is why we get the big bucks. asbestos trust fund can continue to be gates provided certain conditions are That is why we have the salaries. This considered on the floor of the Senate. met relating to Asbestos Injury Trust is a big problem. We are supposed to For the past couple of years, I have Fund legislation. solve it, and we ought to solve it. We encouraged the creation of some kind Pursuant to sections 307, I hereby have been trying to solve it. For the of a trust fund to settle the many as- submit the following revisions to H. last 10 years, some of the best Members bestos claims that are clogging our Con. Res. 95. I ask unanimous consent of this body on both sides of the aisle court system. they be printed in the RECORD. have been working on it. I could not The current tort system does not There being no objection, the mate- begin to name them. I have heard Sen- work at all, in my judgment, with re- rial was ordered to be printed in the ator SPECTER say that Senator Gary spect to asbestos-related claims. RECORD, as follows: Hart, more than 20 years ago, came to According to the RAND study, law- ($ in millions) see him about it. Senator SPECTER and yers on both sides of the issue are get- Senator LEAHY have worked hard, as ting 58 cents of every dollar spent on Current Allocation to Senate Judiciary Committee: FY 2006 Budget Authority ...... 7,387 have Senator HATCH and many other asbestos litigation, which means that FY 2006 Outlays ...... 6,528 Members. Some of them don’t agree the victims are only getting 42 cents of FY 2006–2010 Budget Authority ...... 32,071 FY 2006–2010 Outlays ...... 31,766 about the eventual result, but many of every dollar expended. In addition, Adjustments: the best Senators are working hard be- there are some very sick people who FY 2006 Budget Authority ...... 0

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($ in millions) fund established by the FAIR Act will of the budget resolution for fiscal year be funded from nontaxpayer sources for 2006, the so-called reserve fund. FY 2006 Outlays ...... 0 FY 2006–2010 Budget Authority ...... 48,200 the life of the fund, as required by the Mr. SPECTER. First, I want to com- FY 2006–2010 Outlays ...... 32,900 budget resolution for fiscal year 2006. Revised Allocation to Senate Judiciary Committee: mend my colleague for raising this im- FY 2006 Budget Authority ...... 7,387 This past August CBO estimated that portant issue; that is, the potential im- FY 2006 Outlays ...... 6,526 FY 2006–2010 Budget Authority ...... 80,271 paying claims as provided for under pact to the American taxpayer of the FY 2006–2010 Outlays ...... 64,666 this legislation would cost between $120 asbestos trust fund. In response to my Original Senate Paygo Point-of-Order 2006 Budget Res- olution policy balances: and $150 billion. CBO also estimated colleague’s inquiry, I have been work- FY 2006 ...... 16,849 that the trust fund would incur an ad- ing very diligently to make every ef- FY 2006–2010 ...... 75,580 FY 2011–2015 ...... 274,999 ditional $10 billion in administrative fort to tailor the trust fund so it re- Adjustment: and interest costs. CBO’s total esti- mains solvent and to ensure that the FY 2006 ...... 0 FY 2006–2010 ...... 400 mate for the bill then was that it American taxpayer will never be re- FY 2011–2015 ...... 6,600 would cost between $130 billion and $160 quired to spend money to bail out the Revised Senate Paygo Point-of-Order 2006 Budget Res- olution policy balances: billion in order to meet the obligations fund. FY 2006 ...... 16,849 of the trust fund over its 50-year life. FY 2006–2010 ...... 75,980 As you know, the measure would cre- FY 2011–2015 ...... 281,599 Then in a letter on December 19 to ate a $140 billion trust fund, financed the Senator as chairman of Judiciary by companies facing lawsuits and their Mr. GREGG. Mr. President, as we Committee, CBO elaborated on its ear- insurers, to compensate victims of as- worked through the Budget last year, lier estimate for S. 852 and its ability bestos exposure. This amount of fund- one of the main dilemmas confronting to stay within the $140 billion provided ing was a difficult issue to resolve and us as a government was clearly the for under the bill by stating: took a long time to negotiate. unsustainably high levels of entitle- There is a significant likelihood that the ment spending now and in the future. fund’s revenues would fall short of the However, the bill contains several This spending in the not too distant fu- amount needed to pay valid claims, debt provisions that express our intent for ture will crowd out the Government’s service, and administrative costs. There is the fund to remain funded by private, ability to do much more than merely also some likelihood that the fund’s revenues nontaxpayer sources for its full life. pay the costs of the entitlement pro- would be sufficient to meet those needs. The First off, the bill should not cause the grams themselves. Eventually, it will final outcome cannot be predicted with great deficit to go up because the FAIR Act certainty [over 50 years]. rob us of the ability to fund most es- requires a commensurate amount of sential discretionary Federal pro- Given the uncertainty of this state- revenues to come in from the private grams. So layering on new payments ment, I have been concerned that the sector as is paid out in claims and pro- and programs, which claimants in time fund could rapidly run up a deficit and gram costs. will come to expect as another entitle- that the taxpayers would then be asked Second, the bill explicitly states that ment from the Federal Government to bail the asbestos trust fund out. the American taxpayer should never rather than the private sector, will The clear track record of Govern- bear the burden to pay for asbestos threaten the Nation’s economy with ment administered compensation pro- claims should the fund become insol- even more damage from too much Gov- grams designed to mandate a ‘‘no- vent. Indeed, section 406(b) of the bill ernment borrowing and high tax bur- fault’’ solution for liability claimants expressly provides that the legislation dens. as in this case—has been that Congress would not obligate the Federal Govern- I, too, am concerned about the im- ends up bailing out such funds’ explod- ment to pay any part of an award mense hardship that the asbestos liti- ing costs with tax dollars. The Govern- under the bill if amounts in the asbes- gation explosion has imposed on our ment Accountability Office, GAO, re- tos fund are inadequate. In addition, economy for more than a decade now. leased a report just this past November the ranking member and I added a find- The immense volume of litigation from that found that four victim compensa- ing to the managers’ amendment to un- occupational exposure to asbestos has tion programs—the Black Lung Pro- derscore our intent that the taxpayer already bankrupted numerous compa- gram, the Vaccine Injury Compensa- should not have any obligation whatso- nies, large and small. The greatest tion Program, the Energy Employees ever under the proposed trust fund. harm from the litigation is that genu- Occupational Illness Compensation Admittedly, we as a Congress now inely and critically sick individuals Program, and the Radiation Exposure cannot tie the hands of a future Con- cannot get their day in court—and the Compensation Program—all expanded gress, but our expectation is that fu- financial help they desperately need— significantly over time after their cre- ture Congresses will honor our commit- because the court system is over- ation to include additional categories ment in this regard. whelmed by asbestos claims from tens of victims, to cover more medical con- The FAIR Act also provides the trust of thousands of individuals who are not ditions, or to provide significant addi- fund administrator with the ability to even sick yet, and may never be sick. tional benefits. GAO also found that sunset the fund if he or she finds that Moreover, a disproportionate amount those new and added costs ended up it ‘‘will not have sufficient resources to of victim compensation is being si- being paid by the taxpayers even if the pay 100 percent of all resolved claims phoned off in attorney fees. victim compensation programs started Congress needs to address this crisis out as privately funded. while also meeting all other obliga- so that those who are truly sick from So, again, while I strongly agree—as tions of the fund under this act. . . .’’ asbestos exposure are quickly and fully most everyone does—that the asbestos After such a determination, the trust compensated. Yet our national econ- litigation crisis needs to be solved, it is fund is supposed to terminate. omy also needs to be protected from unfair to do it by making hard working In the event a sunset does occur, all further damage due to these thousands American taxpayers pay the tens of bil- pending and future claims will revert of protracted, unnecessary, and un- lions of dollars in additional compensa- back to the tort system. Some claim- founded asbestos claims in our courts. tion instead of the private companies ants would then have to litigate their But as part of that effort, we also need responsible for the problem. claims in court and would not have a to ensure that the costs of compen- So, I would ask the senior Senator predetermined award. Many companies sating asbestos victims are not shifted from Pennsylvania and the manager of would also be thrown back into the off of the companies that would be le- the bill, what assurances can he pro- tort system—even as they and their in- gally liable in court and onto Amer- vide—beyond the uncertain and not en- surers have to continue payments into ica’s taxpayers. tirely inspiring CBO estimate regard- the trust fund to pay off any out- I therefore hope the Senator, who is ing this bill—that the taxpayers will standing debt incurred by the fund. one of the authors of the bill, will not end up footing the bill for this pro- While that will hopefully not occur, allow me to ask him a few questions to gram, and that the new asbestos trust we also fully expect that future Con- clarify the legislative intent behind fund will not increase the Federal Gov- gresses will not step in and try to take the bill we have before us and the de- ernment’s budget deficit over the 2006– over the asbestos trust fund’s obliga- gree of confidence he has that the trust 2056 period, as required by section 307 tions using taxpayer funds.

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00024 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1159 Mr. GREGG. I appreciate my col- Mr. FEINGOLD. Mr. President, I wish ties involved, including, most espe- league’s willingness to clarify this im- to speak about S. 852, the so-called cially, the victims of asbestos disease. portant point. I would note the Con- Fairness in Asbestos Injury Resolution That means, not only do the medical gressional Budget Office yesterday re- Act of 2005. Because this legislation criteria and claims values have to be leased an estimate of the chairman’s does not provide fairness for asbestos fair, but the design and funding of the substitute on the asbestos trust fund victims or small businesses, I oppose it. system has to be adequate to pay the bill, consistent with what the chair- We need to take more time to address victims properly and completely. man just said, which states: the problems with this bill and work to There are, in my mind, enough con- . . . so long as the fund’s administrator produce a result that is fair to all par- flicting reports regarding the adequacy does not borrow amounts beyond the means ties involved. of the fund that this bill creates to of the fund to repay (as the bill would re- At the outset, I commend my col- warrant opposition to the legislation. quire), the government’s general funds would leagues on both sides of the aisle who During this debate, many of my col- not be used to pay asbestos claims. Further- have been working for years to develop leagues have referenced the CBO study more, section 406 of the bill states that the a bill that addresses this issue appro- that was completed last fall. Sup- legislation would not obligate the federal government to pay any part of an award priately. There is no doubt that this is porters of this bill cite the CBO report under the bill if amounts in the asbestos one of the most difficult and com- and its estimate that valid claims sub- fund are inadequate. Thus, CBO concludes plicated issues that the Judiciary Com- mitted to the asbestos fund over the that the legislation would be deficit-neutral mittee and the Senate have dealt with next 50 years could be between $120 bil- over the life of the fund. in recent years. Both last year, and in lion and $150 billion as justification for So given Chairman SPECTER’s assur- 2003, the Judiciary Committee spent the $140 billion asbestos fund pricetag. ances and this conclusion by CBO; it is weeks and weeks marking up legisla- But as CBO itself points out, the my intention to adjust the Judiciary tion. In both cases, the end result was pricetag could run higher than $150 bil- Committee’s 302(a) allocation to the not satisfactory. But this was not be- lion for a variety of reasons. As the extent that such legislation would not cause of lack of effort on the part of Senate Budget Committee minority increase the deficit for the life of the the Senators who want to find a solu- staff pointed out in its analysis, CBO fund—which brings me to my second tion. said the legislation is designed to concern. There is no argument that the Unfortunately, the solution this bill produce incoming revenue of $140 bil- genesis of this crisis was fueled pri- provides is badly flawed. This bill sim- lion. It did not conclude that the fund marily by the aggressive and abusive ply is not ready for floor consideration. will in fact be able to collect $140 bil- tactics of trial lawyers. I think you That, if nothing else, is evident from lion. According to CBO, it is possible will agree that those same trial law- the managers’ package or substitute that defendant companies could go yers should not now gain a windfall that will include over 40 significant bankrupt and therefore would not be from this legislation. However, they changes to the bill. When the managers able to pay into the asbestos fund, should be compensated fairly and ade- of a bill are still working on a man- thereby raising the possibility that the quately for their work on any claim on agers’ package with that many fund could not raise $140 billion. behalf of injured victims. changes, before many amendments In addition, the pricetag could run Under this bill, an attorney may not have even been offered, the only con- significantly higher than $140 billion receive more than 5 percent of a final clusion to be drawn is that the bill is because according to CBO, it is very award made under the trust fund. This not ready for the floor. likely the administrator is going to is more than generous compensation Asbestos victims around the nation have to borrow money from the Treas- for filing a claim under a no-fault com- deserve just and fair compensation for ury Department at the outset of this pensation system where no litigation the exposure and resulting injuries process. Numerous studies and experts cost will be incurred and which for the they have suffered. My own State of have predicted that there will be more most part will only involve filling out Wisconsin ranks 16th in the Nation in claims filed than revenue collected in forms for clients. asbestos-related deaths, and I know the initial years of the fund. That bor- Under the tiered compensation many Wisconsinites are following this rowed money will have to be repaid scheme using set medical criteria and debate closely because the outcome with interest, adding considerably to awards for multiple levels of asbestos- could have a substantial effect on their the cost of the fund. More important, related injury, awards to claimants pending legal claims and their right to having a large portion of the trust fund will range from $25,000 for level II fair and just compensation. dedicated to interest payments means claimants, with a so-called ‘‘mixed dis- Many Wisconsinites who were em- less money for asbestos victims. There ease with impairment’’, to $1.1 million ployed at mills and factories around is more than a little doubt that $140 for mesothelioma victims in level IX. my state were exposed to asbestos. billion is an adequate amount to keep At a 5 percent fee, attorneys who mere- Some of these workers even unknow- the fund solvent and functioning. Until ly prepare forms in order to file a ingly brought asbestos material home Congress can be virtually certain that claim on behalf of a client can receive on their clothes. A number of these as- the amounts to be raised by the fund between $1,250 and $55,000. This is very bestos victims, or their survivors, have will cover all victims’ claims, I do not generous compensation for merely fill- pending claims in court. Under this believe we can fairly ask asbestos vic- ing out paperwork. legislation, their claims would be ex- tims in Wisconsin and around the na- Does the Senator foresee any cir- tinguished and they would have to tion to give up their legal rights and cumstances under which the 5 percent start over to seek compensation from take a gamble with this fund. limit on attorney fees could be in- the trust fund. These are real people And so a budget point of order was creased? who have endured horrible disease and raised against this measure. Sup- Mr. SPECTER. I agree with my col- loss. Some had a loved one cut down in porters of the bill have asserted that league’s assessment that a 5 percent the prime of life, just months after get- the point of order and other budget cap on attorney’s fees will ensure that ting a diagnosis. We need to find a so- points of order that also potentially lie victims and not attorneys are the ones lution that compensates these victims against the legislation are purely tech- that actually receive the lion’s share of in both a fair and timely way and en- nical in nature. Their arguments sug- the compensation that they are enti- sures they are protected after we force gest that it is only through some unin- tled to. That is one of the primary them to give up their rights to pursue tended fluke of the Budget Act that goals of this litigation reform bill. The their claims in court. supporters must find 60 votes to waive bill makes no provision anywhere that I support the concept of a national the budget points of order so they can would allow the 5 percent cap to be ex- trust fund to compensate victims of as- proceed with the proposal. ceeded for filing a claim with the fund; bestos-related diseases and address the In fact, while some may view the however, in the case of appeals of an strain that these asbestos cases have points of order as technical in nature, award under the fund, attorneys are placed on our legal system and our the budget issues raised by this bill are permitted to receive reasonable hourly economy. But I will only support a bill significant. Indeed, the risk to tax- rates for their services rendered. that in my judgment is fair to all par- payers created by this bill would be

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00025 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1160 CONGRESSIONAL RECORD — SENATE February 14, 2006 considerable even were the nation not victims, but also for the businesses and coverage would not be taken into ac- already in the most dire of fiscal insurers that are paying into this fund. count. Small businesses will have to straits. The budget policies of the Again, I want to reiterate that I sup- pay into the trust fund at levels com- White House and Congress for the past port the concept of a trust fund to parable to their past asbestos liability, 5 years have been nothing short of compensate victims of asbestos disease even if that liability had been covered reckless, and the last thing we should and I understand that if correctly cre- by insurance. In effect, small busi- be doing is to add to our budget prob- ated and administered, the fund could nesses will be punished for responsibly lems by roping taxpayers with a mas- guarantee certainty to both victims ensuring their liability. A number of sive new underfunded commitment. and defendant companies. This legisla- these smaller businesses have said The analysis presented by the Sen- tion, however, does not give that cer- these mandatory payments would drive ator from North Dakota, Mr. CONRAD, tainty to either party. If the fund’s them into bankruptcy. Meanwhile, the ranking member of the Budget ability to pay claims declines, asbestos larger businesses that also have asbes- Committee, a few days ago is telling. victims could find themselves at the tos liability would benefit from paying Based on conservative estimates, a re- mercy of Congress. Last week, Senator into this trust fund because of the way view by professional staff of the Senate SPECTER voiced a willingness to make the mandatory payments are struc- Budget Committee projects that over modifications to medical standards or tured. Under the bill, many of these time the trust fund established by this criteria if it looks like the fund might larger businesses would pay far less legislation to compensate people made exceed $140 billion. This is anything than they currently pay to resolve sick by asbestos will fall $150 billion but fair to asbestos victims. To change these claims. I cannot support legisla- short of the funds it needs. Moreover, the medical standards or criteria mid- tion that unnecessarily hurts smaller the analysis shows that the shortfall stream introduces great uncertainty businesses while allowing more cul- may amount to $300 billion under even for these victims, which I find unac- pable and larger businesses the chance reasonable assumptions. ceptable. If we are going to ask victims to evade their full responsibility to as- Lest some argue that these figures to forgo their legal rights and enter bestos victims. aren’t meaningful, $300 billion is more this system, the least we can do is as- In addition, like many of my col- than we spent last year on the Depart- sure them that they will receive just leagues, I have concerns about the im- ments of Agriculture, Commerce, Edu- compensation. pact that this legislation will have on cation, Energy, Housing and Urban De- There are two things we absolutely the Federal budget. Supporters of the velopment, Interior, Justice, Labor, have to do in any asbestos legislation. bill assert that no taxpayer money will State, Transportation, Treasury, and First, we have to be sure that there is ever be used to keep this trust fund sol- Veterans Affairs, and the Environ- adequate money right away to pay the vent. But what happens if the fund does mental Protection Agency, combined. large number of claims that we know become insolvent? I agree with my col- This bill presents a potentially mas- will be filed almost immediately. I leagues who say that if we pass this sive new burden for taxpayers on top of think this debate has shown that there bill, Congress will find it very difficult the record government debt with which is not enough money to pay out the to let the trust fund expire. Senator they have been saddled. And because initial claims and substantial disagree- SPECTER is on record as saying medical they face that burden, taxpayers are ment as to whether there is even standards and criteria could be altered, entitled to the full protection of the enough total money in the fund to pay which I already noted is incredibly un- Budget Act, no matter how technical out claims over the life of the fund. fair to victims. Others in this chamber such protection may be in the eyes of The other thing we must do is make have voiced concerns that the obliga- the bill’s supporters. Taxpayers deserve sure there is a strong sunset provision tion for the fund could be shifted to the safeguard of a 60-vote budget point that will allow victims to file suit in taxpayers and I share those concerns of order. I will not vote to waive the the future if this trust fund isn’t able also. I know Senator SPECTER and Sen- Budget Act. to pay their claims. Under this bill’s ator LEAHY, two colleagues whom I There is no doubt that this bill will language, asbestos victims have to deeply respect and who have worked require a significant number of asbes- wait until the administrator has de- tirelessly on this issue, say that tax- tos victims to give up their legal rights clared that the fund can no longer pay payer money will not be used for this and, in many cases, pending claims in claims and has followed procedures be- fund. But there is no way to say that court. Under the language of this bill, fore they can file their cases in court with absolute certainty. If the fund unless a claimant is already presenting again. Moreover, the bill states that runs out, one possibility is that tax- evidence before a judge or jury or the the termination of the fund takes ef- payer money will have to be used to final verdict has been issued, the fect 180 days after the date that the ad- continue to pay claims. This option is claimant’s case is stayed and the ministrator determines that the fund no more desirable than changing the claimant is redirected to the asbestos will not have sufficient resources to medical standards under the bill or trust fund. We are all aware that there pay all of its obligations. So, even forcing claimants and companies back into the legal system. The potential will be victims who have invested a sig- though the administrator has declared budgetary impact is one more reason nificant amount of their time and re- that the fund does not have enough that this legislation should be studied sources into pursuing legal claims, but revenue to meets its obligations, asbes- further so that we can ensure the trust for whatever reason, their cases have tos victims would have to wait until fund will provide fair compensation to not yet reached the evidentiary stage. the fund formally terminates 180 days asbestos victims. As any legal observer knows, cases can later to file their claims in court. For We can do better by both the victims take years to reach the evidentiary some victims, 180 days of waiting and business interests looking to us for stage. Is it fair to ask asbestos victims seems a lot to ask, after they were a solution to this problem. I believe who have invested years of their lives forced to give up their legal rights to that if we take more time to ensure the and extensive resources to give up enter this fund in the first place. I solvency of the fund, to ensure that their legal rights and instead file would hope that we can legislate a victims’ legal rights are adequately claims with a fund that may not have more prompt and certain sunset provi- protected, and to ensure that taxpayer enough money to pay out all the sion before asking asbestos victims to money will not have to finance the claims? I do not think it is fair or rea- give up their legal rights. fund, we can reach a solution that sonable and I had hoped we would take I have also heard concerns from truly can be called fair. more time to ensure the fund will re- small business owners that this bill I suggest the absence of a quorum. main solvent before moving forward will unfairly impact their businesses, The PRESIDING OFFICER. The with this legislation. in some cases even driving them out of clerk will call the roll. I am also concerned about the ability business. There are a number of small The bill clerk proceeded to call the of victims to reenter the legal system and medium-sized businesses around roll. in the event the asbestos fund is de- the nation that have purchased insur- Mr. DURBIN. I ask unanimous con- clared insolvent. This issue involves ance in the past to cover their asbestos sent that the order for the quorum call fundamental questions of fairness for liability. Under this legislation, that be rescinded.

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00026 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1161 The PRESIDING OFFICER (Mr. lies. This bill is designed to close down costs under the proposed amendment. Oper- DEMINT). Without objection, it is so or- that opportunity, to shut the court- ating the Asbestos Injury Claims Resolution dered. house doors and to replace them. Fund would be an entirely new government Mr. DURBIN. I ask unanimous con- As I said before, it is quite a bold un- task, and CBO and other analysts have little basis for judging how the fund’s adminis- sent I be given an additional 5 minutes dertaking to replace the court system trator would implement the legislation. No to speak to compensate for the 5 min- in America with something new. That one can be certain, because of the limited utes requested by the Senator from something is this trust fund. And in a data that are available, as to how many Tennessee. few moments, we will have a vote on in claimants there would be and how much The PRESIDING OFFICER. Without this Senate. The vote is critically im- would have to be paid to them. The revenues objection, it is so ordered. portant. It is a budget point of order. It under the amendment would be, at most, $140 Mr. DURBIN. Mr. President, the issue goes to the heart of this trust fund and billion, but could be significantly less. before the Senate today could not have as to whether we can trust that $140 He goes on to say: more importance for hundreds of thou- billion in the trust fund will do the job. CBO concluded, in its February 13 letters sands of American peoples. Unbe- It asks the most basic question: Are to Senators Gregg and Specter, that the pro- knownst to many, in their workplace we, in fact, not creating a private-fund- posed amendment would be ‘‘deficit-neutral environment, in their homes, places ed trust fund but, rather, an obligation over the life of the fund.’’ That conclusion is they have visited during the course of of the American Government, the Gov- based on the fact that the sunset provisions their lives, innocent people have been of the legislation would limit spending for ernment, to pay in years to come for claims compensation, debt service, and ad- exposed to asbestos fibers. The fibers these victims? Are we replacing a court ministrative costs to an amount no greater are inhaled into the lungs and sit like system, where the businesses which than the budgetary resources that would be tiny detonation devices that someday have some exposure, some liability, available to the fund from assessments on may explode. If they do, they could pay up in court, with a system where liable firms, assets of existing bankruptcy cause asbestosis which reduces the effi- the taxpayers take care of the victims? trust funds, any interest earnings. Thus, if ciency of the lungs or, even worse, If you believe that the companies valid claims and other costs of the funds mesothelioma, a fatal condition simi- that are most liable are paying into were to exceed its resources, the adminis- lar to lung cancer which claims the life this trust fund the amounts they other- trator would not have the authority to spend amounts in excess of those resources. of the innocent victim. wise would pay in court—we know that As I have said repeatedly, I don’t is not true. Three weeks ago, U.S. Gyp- Senator SPECTER admitted it. He know of a single worker or person af- sum, a major company, announced if came to the Senate last week and was flicted with this disease who willingly they were to pay off all the asbestos asked: What happens if this fund runs put themselves in this circumstance. claims against their company they out of money? What if our guess that it But for many thousands of people, they would be paying out somewhere in the is going to cost $150 billion is wrong? find themselves infected and dying. range of $4 billion. However, under this He gave an honest answer: We will just Conversely, we know that many com- bill, U.S. Gypsum will pay into the cut the compensation to victims and panies that made products with asbes- trust fund somewhere in the range of give them less money. tos over the years knew for decades $800 million, maybe $900 million at the I think that is right. That is the only that it was a dangerous substance, a most. So for this company, this is a place to turn because the alternative is substance which was shortening the windfall. They will escape some $3.1 to turn back to the U.S. Treasury. lives of their employees and a danger billion in exposure and liability and That is what this budget point of order to their customers. They said nothing. others will step in to pay the dif- is all about. As a result, when these little detona- ference. Companies will step in to Members of Congress in the Senate tion devices or timebombs went off in make up the difference and ultimately, and House who are mindful of the budg- the lungs of Americans, thousands and it is my belief, when the trust fund et deficit we face together understand hundreds of thousands and millions of fails, as it is likely to fail, then it will that we are not only plunging into the Americans, it created a wave of law- fall on the shoulders of the American darkness with this trust fund, into suits against the companies that made taxpayers to make up the difference. something that has never been tested products containing asbestos. If this bill passes, you can expect the or tried at this magnitude but, more That has been going on for decades. stock of many of these companies that importantly, we are putting at risk the Those who estimated the number of af- are on the line for asbestos claims to lives and fortunes of families across flicted victims have been way off. The go up dramatically, declare dividends, America, innocent victims of asbestos Johns Manville trust fund said there pay more to their CEOs, make sure exposure, who simply want justice so would be 200,000 victims. It turned out that their profits are larger and shared that before their loved one dies, before there were 2.1 million. So it has been a by more. But when it comes to the the suffering continues from asbestos test of our legal system to give fair stock of the American people, it will go exposure, that, in fact, they will have a compensation to the people who have down because we will be accepting re- chance for fair compensation. With this been hurt. Many people have gone sponsibility not for just this genera- trust fund they will not. Their lawsuit through the system and received com- tion but generations to come. will stop the minute this bill is signed pensation. The budget point of order before the into law, if it reaches that point. Their Of course, there have been some who Senate raises this fundamental ques- day in court is over. They will wait to have abused the system on both sides. tion. It is one that, on its face, few see if this trust fund, as promised, will There have been some filing lawsuits would argue with; that ultimately, the make them whole. for people who were not sick. There American taxpayers are going to be I reserve the remainder of my time. I have been businesses, which were clear- holding the bill, making up for these see the Senator from Delaware. How ly liable, that did everything they corporations which will be off the much time is remaining on our side? could to avoid paying victims. Those hook. The PRESIDING OFFICER. There is things happen in courts of justice This afternoon, Senator CONRAD, the 151⁄2 minutes. across America every single day. ranking member on the Committee on Mr. DURBIN. I yield to the Senator Now comes the bill before the Senate, Budget, received a letter from the Con- from Delaware 5 minutes. this so-called Fairness in Asbestos In- gressional Budget Office, signed by Mr. BIDEN. Mr. President, I have re- jury Resolution Act, which says that Donald Marron, the Acting Director. frained from speaking on this bill up we should basically deny to hundreds The letter clarifies a letter that has until now because, quite frankly, my of thousands of Americans their day in been talked about in the Senate a lot. colleague, our leader, Senator DURBIN, court, their due process, their chance I will not read the entirety of the let- and our ranking Member of the Com- to stand before a judge and jury to ter but it says, to clarify an earlier let- mittee on the Budget and others have have their fate decided, their chance to ter: spoken with eloquence and precision, I say that we believe the person on the As CBO has noted in previous assessments believe, about this point of order. other side of this lawsuit is responsible of asbestos legislation, there is an enormous I have a number of amendments if for the illness and death in our fami- amount of uncertainty about the potential this point of order fails. But before the

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1162 CONGRESSIONAL RECORD — SENATE February 14, 2006 time closes on this vote, I did want to right—and I believe they are—about I wish to add, we brought up this ask the indulgence of my colleagues to how short this fund is going to come whole issue of this secret list last make a few very brief points. and how quickly it is going to reach week, and Senator SPECTER came to No. 1, this is a Herculean attempt by that point, and how underfunded right the floor and he said he believes for a one of my best friends in the Senate— from the very beginning this is likely variety of reasons he cannot tell us, one of my best friends, period, Senator to be, guess what happens. At some cannot disclose to the public, the con- SPECTER—to try to deal with the real point, the administrator of this whole tributors, the businesses that will con- problem. The real problem is that there outfit can look down the road and say: tribute to this fund and how much they are a lot of people out there suffering By the way, we are going to run out of are going to be asked to give. So we are from the effects of asbestos. There are money, and he can recommend a couple dealing with an amount, $140 billion, not a lot of companies out there with of things. He can recommend that the that many people question. Serious the money to pay all of these claims. criteria to qualify change. He can rec- groups have analyzed it and said it is There is the concern that some of the ommend that the amount of money re- not nearly enough. And when it comes very companies we have to go to, to re- covered change or he can recommend to the contributions from businesses to cover from, may very well declare the fund sunset and people go back, in create the fund, we are dealing with a bankruptcy. So I understand the moti- part, to what they had before. secret list. vation. It is a decent, honorable moti- What would happen if I had said to This may be the first time in the his- vation. the business community: There is one tory of the Senate we have spoken on But the bottom line is, what we are other thing he could do. He could go the floor openly about how things are asking an awful lot of people to do is to back and change the contributions and determined. Apparently this one com- give up a right in tort that has existed what category each of the businesses pany that has been mentioned on the in common law for hundreds and hun- fall in. He has the discretion to do floor created a list of businesses and dreds of years prior to our Nation’s his- that. He can go to a company that had decided how much, under the criteria, tory but throughout our Nation’s his- more money than another company, they would be paying in. tory. The deal was it would be in re- even though not as much responsi- Mr. SPECTER. Will the Senator from turn for a guarantee. They would take bility, and kick them up into a higher Illinois yield for a question? less, they would get in line, people who category. I wonder how many of my Mr. DURBIN. On your time I would had claims they could pursue now friends would be saying: Wait, wait, be happy to yield. would not be able to pursue them im- wait a minute. That is not fair. Busi- Mr. SPECTER. I have no time. mediately until the medical effects oc- nesses have to plan. Businesses have to The PRESIDING OFFICER. The Sen- curred. All kinds of limitations were have certainty. You have to make sure ator from Pennsylvania has no time. prepared to be put on individuals’ that what you tell them in here is Mr. DURBIN. How much time do I rights and claims in return for a deal. going to happen. have remaining? What was the deal? The deal was that Guess what, folks. That is what we The PRESIDING OFFICER. Seven they—the victim—having met the cri- are doing to the victim. That is what and one-half minutes. teria of the bill, would be guaranteed a we are doing to you, the person who Mr. DURBIN. I yield for a question, if payment and guaranteed a payment gave up your right that only the Con- it is pointed. within a time certain and that every- gress can take away from you. Give up Mr. SPECTER. When you refer to the one would know the rules. your right. so-called secret list, as I pointed out to When I was a young Senator my first There is much more to say. I hope I you on several occasions over the past year here, I was No. 100 in seniority. I will not have to say it because I hope several days, isn’t it true you have sat in the back corner. Russell Long this point of order is sustained. But if seen the list? was in the Senate with the finance bill. it is not, there are a number of amend- Mr. DURBIN. No, I have not. And I Senator Schweiker of Pennsylvania ments I have. thank the Senator for raising that Mr. DURBIN. Mr. President, I yield and Senator Case from New Jersey and point. the Senator 2 additional minutes. Mr. SPECTER. Isn’t it true the list I worked out an agreement related to a Mr. BIDEN. Mr. President, I thank compact relating to the Delaware the Senator very much. has been made available to you to see? River area. I walked up to the Senator The bottom line is, I do not, for a Mr. DURBIN. I would say to the Sen- from Louisiana, Mr. Long, and I said: moment—and, again, because he is on ator the same thing I said last week Senator, I hope you can support this. the floor and he is my friend—I do not when we engaged in this conversation: We have worked this out. He said: Yes, question the motivation, the intention, For some reason, the Senator—whom I I will be with you. I will be with you. the desire, the intensity with which my respect very much, and I have said this I had a staffer who had a lot more ex- friend from Pennsylvania feels about publicly, and it is not to be construed perience than I. I had only been here this issue. I believe he believes if this otherwise—has decided this list is con- months, maybe a year. This staffer passes we are going to be doing the vic- fidential. So the list is made accessible worked here before and was seasoned tims of asbestosis—and all other as- to staff members and Members of the and said: By the way, ask for a rollcall pects of the exposure to asbestos—we Senate to view but not to take notes or vote. I asked for a rollcall vote. And in are going to be doing them more good copies. Now, that is fact. the process, when the vote came, it got than harm. Mr. SPECTER. Mr. President, will to Long and Long voted ‘‘no.’’ I said: But I disagree. If the money were the Senator yield—— He just told me ‘‘yes.’’ here, if the money were guaranteed, Mr. DURBIN. And when I asked the Well, he told me, yes, he would vote under no circumstances could it fall Senator from Pennsylvania if he would for it, if it were not a rollcall vote. I short, then, in fact, that would be the make this list part of the RECORD, so didn’t know he said that, but he meant case. But the last piece I will mention we could see it right here in the CON- that only if it was a voice vote he here is, I heard my good friend from GRESSIONAL RECORD, published for would vote for it—meaning he could California talk about Goldman Sachs America to see, he said he would take drop it in conference. I walked up to has a list. Isn’t this amazing? We are it under advisement. He came back the him and I said: Senator, we had a deal. about to vote on a bill that by some next day and said for a variety of rea- And I was referring to my colleagues measure will cost at least $140 billion sons, he could not do it. The fact re- from Pennsylvania and New Jersey and to somebody—I think a lot more—and mains—— Delaware. And he put his arm around there is a list that Goldman Sachs has. Mr. SPECTER. Will the Senator yield me, as only he could do, he pulled me And we don’t? I ain’t for no deal I ain’t for a question? in close like he used to do to everyone: in on. I ain’t in on this deal. I am not Mr. DURBIN. Not until I complete JOE, as my Uncle Earl used to say: I for it. I am not for it. my thought. The fact remains that this ain’t for no deal I ain’t in on. I thank the Chair and thank my col- list is secret to the public. If this is a Guess what. The victims are not in league. public forum, if we are considering leg- on this bill. They are not in on this Mr. DURBIN. Mr. President, I thank islation that will impact the public, bill. Because if my colleagues are the Senator from Delaware. why, then, is the most fundamental

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1163 question about who will pay into this important bill, there is a serious flaw only been here in the Senate 5 years, trust fund being kept confidential and in this legislation, a flaw that cannot and in the House before that 4 years, secret? be overcome, even with the good feel- but that is long enough to see how this It strikes me as straining credulity ings I have for the chairman of this town works. The Congress is creating that this process is so open and trans- committee. this trust fund. If this trust fund runs parent that we cannot tell the busi- I reserve the remainder of my time. out of money and there are still vic- nesses of America how much they have The PRESIDING OFFICER. Who tims around, the people in this very to pay in or the victims of America yields time? body will stand up and say: Congress how much they can expect to receive The Senator from Nevada. created the problem, Congress needs to into this trust fund for their own pay- Mr. ENSIGN. Mr. President, I want fix the problem. Everybody will join in ments. That is a fact. And because staff to speak. We are debating a budget because there will be victims and peo- members or Senators can go to the point of order. People in America are ple will have posters of victims out hearing room and look through the re- thinking this is some kind of a tech- there. And there are real victims, peo- port—not make a note, not make a nical jargon that Senators are using. ple who are suffering, people who are copy—does not create a lot of con- What does it mean? not getting the help they need today. fidence. A budget point of order is a par- That is why I believe this is a real Mr. President, I reserve the remain- liamentary rule that can be used to budget point of order because I think der of my time. make sure that the Senate carefully the Congress will act and will give the The PRESIDING OFFICER. Who weighs whether we are putting undue money to supplement the trust fund. It yields time? burdens and obligations on future Con- will not be their money; it will be the Mr. SPECTER. Mr. President, will gresses, which obviously means to fu- taxpayers’ money. But they will give the Senator from Illinois at this point ture generations of Americans. the money. yield for a question? We are raising—and I have raised— Now, I have heard a lot of people Mr. DURBIN. Mr. President, how this budget point of order today. I will come down here and say why there is a much time do I have remaining? be the first one to admit, it is a very problem. The fact is, we have a broken The PRESIDING OFFICER. Five and technical budget point of order. But let legal system that needs to be fixed. one-half minutes. me explain the reasons I believe it is a The trial lawyers in this country have Mr. DURBIN. I believe the Senator real budget point of order in its effect, discovered these class action lawsuits: from New Jersey is coming to the floor stopping huge obligations by this Gov- Bring your Rolodex in and we will see and asked to speak. With only 51⁄2 min- ernment in the future. who we can sue. And so many people utes remaining, I reserve the remain- In the wisdom, I believe, of the Sen- who are not victims are clogging up der of my time. ate in last year’s budget, we put in a the courts, who I believe are led there Mr. SPECTER. Will the Senator yield budget point of order that would say by unscrupulous lawyers. It is blocking for 30 seconds? beyond 10 years, if there is spending of real victims from receiving compensa- Mr. DURBIN. To show the Senator more than $5 billion obligated, a bill tion. from Pennsylvania how much I respect would be subject to a budget point of It has been said that many businesses him, yes. order. It is because it had become prac- have gone out of business. The chair- Mr. SPECTER. Would the Senator tice around here to make things kind man of the Judiciary Committee has from Illinois be willing to accept, in of ramp up, and, then, in the future argued one of the reasons we need the open court, the list? spend the money so it did not look as trust fund is because a lot of businesses Mr. DURBIN. If I am allowed to put though we were spending money now. have gone out of business so there is it in the RECORD. It looked as though things were either nobody left to sue. Why did they go out Mr. SPECTER. The Senator from Illi- budget neutral or had very little im- of business in the first place? It is be- nois would be bound by the denomina- pact on the budget. cause of frivolous lawsuits, having to tion on the list, which is law and Sen- I said the other day on this very spend millions and millions of dollars ate rules. It is not something ARLEN floor, talking about what is going to defending themselves. In a lot of these SPECTER has made up. But this is a list happen with Medicare, Medicaid, and cases, the businesses had nothing to do which you can have in your hand. It is Social Security, as the baby boomers with asbestos. not a secret list, but there are rules of retire in this country, it is a serious I remember this one company that confidentiality established by law and problem we are facing. If there is a came in to visit me. They were an in- by Senate rule. problem with this trust fund—which surance company thinking of getting Mr. DURBIN. I would say to the Sen- many people believe there will be a into insuring folks in the asbestos ator—— huge problem with this trust fund, that field. So they did a study. They came Mr. SPECTER. And if the Senator it will be grossly underfunded—if the to the conclusion it was too risky, and from Illinois declines, that is fine with problem ends up coming back to the they decided not to go into that busi- me. taxpayer, it will happen at a time when ness. I forget the exact figure, but I Mr. DURBIN. I would say to the Sen- the baby boomers are starting to re- know since that time they have paid ator from Pennsylvania, I think he has tire. hundreds of millions of dollars out de- constructed a situation here that isn’t I know the Presiding Officer from fending themselves because they did fair to this process. To think that we South Carolina is one of the most fis- not release the study. would be dealing with the lives and for- cally responsible people in this body. I This was their own internal docu- tunes of so many hundreds of thou- have followed his short record in the ment they used to decide whether they sands of families, and that we are say- Senate and know how passionate he is were going to go into a certain busi- ing we cannot share with them the about our entitlement programs. I feel ness. But because they did not release most fundamental information about the same way he does. But with that the study, trial lawyers brought them how this trust fund is created, I think looming problem of the baby boomers in to the courts and sued them. In we could do better, we should do better coming up, the last thing we can afford many cases, it is cheaper to settle than in the Senate. to do is to enact a bill that potentially it is to defend yourself in court. So Mr. SPECTER. Would the Senator could have a major impact—literally, they paid out umpteen millions of dol- from Illinois accept my characteriza- maybe with a number in the hundreds lars. tion of his position as ridiculous? of billions of dollars—that could have a The problem with that is insurance Mr. DURBIN. No. I would accept my drain on our Government. companies are a passthrough. Ameri- characterization as challenging the The Senator from Pennsylvania says cans are paying the bills. They are just Senator from Pennsylvania to accept there are no Federal revenues at stake a company that takes in premiums and the obvious. If this list has been cre- here, the trust fund does not allow for pays out claims. They are there to ated by some private company and can- that. Here is why I think it is a real make a profit. And if they have to pay not be shared with the people of Amer- budget point of order. I have been things out, they have to raise the pre- ica in the midst of the debate on this around this place long enough—I have miums, which we all pay.

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00029 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1164 CONGRESSIONAL RECORD — SENATE February 14, 2006 So we know there is a serious prob- our court system. We won’t have all alarm about the dangers of that prod- lem. We know it has been caused be- these lawyers getting rich over all uct. cause of a bad system, and we need to these class action lawsuits. We will ac- He saw mesothelioma and asbestosis. fix the system. I am the first one who tually get the victims their just com- In my office in New Jersey, I had a wants to stand up here to fix the sys- pensation. man and his wife and his mature son, tem. The alliance that has been formed If we join together and get something who was about 30 years old, come in to here to try to support this budget point done and quit making partisan polit- see me because they all had mesothe- of order is a little strange. There are ical points, I believe the actual victims lioma, but only the father worked in some fiscal conservatives. There are will be better off, but so will those the manufacturing facility, the mill. some people who support the trial law- businesses that are threatened to go His wife and child, his son, were made yers. I have never been exactly claimed out of existence even as we speak. ill as a result of the mother washing by the trial lawyers as being one of I yield the floor and reserve the re- her husband’s clothes. That is how le- their friends, and I feel a little uncom- mainder of my time. thal, how dangerous asbestos is. fortable to be in this position, to be The PRESIDING OFFICER. Who This bill is an abstract exercise. honest with you. But I am standing up yields time? There are real people involved, people for this budget point of order because I Mr. LAUTENBERG. Mr. President, I who are going to die as a result of the believe this bill is fiscally irresponsible think I have been yielded time. I would exposure. I have seen it up front and to the taxpayers into the future. like to check with the people at the personal. A friend of mine who was a Now, I want to address one other por- desk to see whether that is the case. I lawyer, after practicing 20 years, got a tion or one other thought no one has heard the Senator from Illinois say I call from a member of a union one day addressed on the floor of the Senate. I was expected on the floor. Is that noted that had asbestos workers, and he was told to get a chest x ray. He did. After was in the House of Representatives for in the RECORD in any way? 4 years, and there I served on the Ways The PRESIDING OFFICER. We have 20 years of no illness, nothing, sud- denly they found that he had a spot on and Means Committee. The Constitu- no record of the Senator from Illinois his lung, and it turned into mesothe- tion of the United States says some- yielding time. Mr. LAUTENBERG. Mr. President, lioma and he was dead soon thereafter. thing very clear. It is a very simple I recently had a World War II vet—I since I am on the floor and there is no- writing. That is the beauty of the Con- am one as well—come into my office, body else here on the Democratic side, stitution, how simple the writing is. sick from mesothelioma, from work he I ask unanimous consent that I be per- Section 7 of article I of the Constitu- did 40 years ago. We have seen so many mitted to speak for not more than 5 tion states: cases where the gestation period is so minutes or so. All Bills for raising Revenue shall origi- long, so that to suddenly close this out Mr. ENSIGN. Whose time is that nate in the House of Representatives.... and say that is going to be enough coming off of, Mr. President? That is a very simple statement. In money, $140 billion—it sounds like a Mr. LAUTENBERG. I believe it is our the letter to the budget chairman, the lot, but it is not a lot when it comes to time. Congressional Budget Office says: individuals who need help and who The PRESIDING OFFICER. There CBO expects those sums— need to be able to continue to conduct would be an additional 5 minutes, un- their lives and do whatever they can to Talking about the sums for the trust less someone else yields time. make life comfortable. fund— Mr. LEAHY. Mr. President, par- would be treated in the budget as Federal The Congressional Budget Office has liamentary inquiry: The opponents of stated that the fund will need $10 bil- revenues. the position of the Senator from Ne- Section 7: lion more. Other analysts put the fig- vada, how much time do they have? ure as high as $300 billion. So it is fair- All bills for raising revenue shall originate The PRESIDING OFFICER. The Sen- in the House of Representatives. ly obvious that I am going to oppose ator from Nevada has 23 minutes. The this bill and support the point of order. Any Member of the House of Rep- Senator from Illinois has 3 minutes 22 I urge my colleagues to do the same be- resentatives can raise this constitu- seconds. cause what we are doing is dismissing tional question. I cannot remember a The Senator from Vermont has 15 the suffering of people who have been time when somebody raised this con- minutes. exposed to this, even though the com- stitutional question when the House of Mr. LEAHY. This is in opposition to panies knew how dangerous the mate- Representatives did not support it. It is the position. I will reserve my 15 min- rial was they were working with. They called a blue slip. I raised one when I utes for the Senator from Pennsylvania permitted people to work with it and was there. It was on the nuclear waste and myself. did not do anything about it, except ul- bill that was up. I raised that budget Mr. ENSIGN. Mr. President, before timately, in many cases, they went point of order, and that was at a time the Senator from New Jersey speaks, I bankrupt as a result of their behavior. when the vast majority of House Mem- yield 15 minutes to the Senator from I yield the floor, and I hope my col- bers supported the nuclear waste bill. North Dakota. leagues will oppose this bill and sup- Yet they supported me on that blue The PRESIDING OFFICER. The Sen- port the point of order. slip, that constitutional question, be- ator from New Jersey made a unani- The PRESIDING OFFICER. Who cause they wanted to protect their mous consent request for 5 minutes. Is yields time? rights as a body. there objection to that? Mr. ENSIGN. Mr. President, I yield 15 Well, beyond the budget point of Mr. LAUTENBERG. Mr. President, I minutes to the Senator from North Da- order, we may be spinning our wheels would like to use Senator DURBIN’s kota. because this trust fund raises revenues, time. He has 3 minutes left. I ask unan- The PRESIDING OFFICER. The Sen- and it is the prerogative of the House imous consent that I be permitted to ator from North Dakota is recognized. of Representatives to start a bill like use Senator DURBIN’s time. Mr. CONRAD. Mr. President, first, I that. So even beyond the budget point The PRESIDING OFFICER. Is there want to acknowledge the extraordinary of order, we may be wasting our time objection? amount of work that the chairman of with this bill because of the trust fund Without objection, it is so ordered. the committee and the ranking mem- that has been set up. Mr. LAUTENBERG. Mr. President, ber have put into this bill, and how So I encourage my colleagues, let’s since time is limited, I am going to get much I admire the diligence they have sustain this budget point of order and down to the nuts and bolts. I come brought to the task. start over. Let’s get a good medical cri- from a State in which asbestos was I rise today on the question of a teria bill, work in a bipartisan fashion, prominent in manufacturing in many budget point of order that has been get together and limit it. places. As a matter of fact, early in the raised by the Senator from Nevada. Let’s make sure that victims of as- 1950s, a doctor named Irving Selikoff, That budget point of order is clearly bestosis and mesothelioma are com- who was a researcher as well as a phy- well taken. A number of months ago, pensated. Let’s get rid of all of the sician, discovered the lethality of as- my technical staff on the Budget Com- phony claims. It will quit clogging up bestos. He is the one who raised the mittee came to me and said they had

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00030 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1165 been reviewing this legislation and is a circumstance where there could that very often the initial estimates they wanted to alert me that they be- preclude some tier VI cancer claims, are entirely wrong. lieved this legislation was underwater, and that could reduce costs. But it will If we look at the original range of the that it was underfunded, that it would affect fewer than 1 percent of claims. Manville claims, this estimate was lead to severe consequences not only There are additional areas of uncer- done back in the late 1980s, and they for taxpayers but also for those who tainty in the CBO analysis: the number estimated there would be 50,000 to were the victims; it might also lead to of future cancer claims. CBO estimated 200,000 claims. Already, there have been severe consequences to companies that 78,000 new cancer claims. The Tilling- 690,000 claims. They now estimate thought they were escaping the court Hast study, financed by Johns Man- there will be 1.4 million, for a final system. ville—so it is not financed by the trial total of over 2.1 million claims. When Why is that? Well, it is true because bar or by labor unions, not financed by they initially started, they said there the analysis that has been done dem- companies who are against this legisla- would be 50,000 to 200,000. They were onstrates it is much more likely this tion. Instead, it was financed by the wrong by a country mile. fund will go insolvent than not. Why? Johns Manville trust. The Tilling-Hast We looked at the black lung fund. First, because claims and administra- study did 14 different scenarios. They Back in the late 1960s when it was ini- tive expenses are likely to exceed the concluded, on average, there would be tiated, they said the total cost would contributions to the asbestos trust 133,000 new cancer claims, not the 78,000 be $3 billion. We are at $41 billion today fund. provided for in the CBO analysis. If and counting. Second, upfront claims will far ex- they are right, this bill is $295 billion The hard reality is that CBO has re- ceed contributions, so the trust fund underwater instead of the $150 billion affirmed there is a significant likeli- will have to borrow substantial we have assumed, based on increasing hood that the asbestos funding is inad- amounts, and that borrowing will come the cancer claims from the 78,000 in the equate. Here is what they said in a let- from the Federal Treasury, increasing CBO study to 90,000. ter today: the ultimate cost. The percent of nonmalignant claims CBO’s analysis indicates that the proposed Third, small adjustments in the is another area we believe will increase trust fund under Senate amendment 2746 amount and timing of the assumptions costs. CBO says only 15 percent of the might not have adequate resources to pay all quickly bankrupt the trust fund. people will fall into tier II and tier III. valid claims. There is a significant likeli- Finally, it is very unrealistic to as- Tier II gets $25,000 cash reimburse- hood that the fund’s revenues would fall short of the amount needed to pay valid sume that the trust fund, once initi- ment. Tier III gets $100,000. They say claims, debt service, and administrative ated, will ever terminate. only 15 percent of the claims will fall costs. Mr. President, CBO said in a letter there. Other objective experts say it is Let there be no doubt. This is what it today: more like 10 to 40 percent. We took the says. CBO cannot estimate any costs or savings midrange of that estimate, 25 percent. In the point of order which has been that might result from several features or We think that is a more prudent esti- brought by the Senator from Nevada, it consequences of the legislation. A number of mate of the amount of financing costs those features could add to the cost of the shall not be in order to consider any on fund borrowing. bill, joint resolution, amendment, mo- legislation. We have heard over and over that tion, or conference report which would What are those features? Here are a this will only cost $120 billion to $140 cause a net increase in direct spending number of things that CBO said they billion or $120 billion to $150 billion, de- in excess of $5 billion in any of the four could not estimate. They said they pending on the estimates, and that 10-year periods beginning in 2016 made no provision for dormant claims. CBO has said there is an assumption through 2055. Dormant claims are cases that were that the claims will cost in that range: S. 852 creates an entitlement. The brought previously but for which there $120 billion to $150 billion. That leaves language could not be more clear. It is nobody to pay under the current sys- out something. That leaves out some- says in section 131: tem. No. 2, we also know there are thing pretty important. That leaves trusts that are only paying cents on An asbestos claimant who meets the re- out the financing costs because every- quirements of section 111 shall be entitled to the dollar. Those dormant claims could one acknowledges that the early claims an award in an amount determined by ref- come back against this fund. will be far in excess of the early rev- erence to the benefit table and the matrices Second, exceptional medical claims: enue. The result is an enormous mis- developed under section (b). Exceptional medical claims are claims match between funds going out and Are these all just words? Are all that don’t fit neatly into one of the funds coming in. That borrowing is these just numbers on a page? Or does nine categories provided for in this going to be made from the Federal this have some real-world con- bill. CBO said they could not make an Treasury. The interest cost on that sequence? estimate for those. money has not been calculated in the We can look to the Johns Manville Third, CBO made no estimates for work of CBO. They acknowledge that. trust for the answer to that question. family members’ claims; that is, fam- That is the biggest single difference we Because they estimated incorrectly, ily members who have been affected be- have identified. You have to include fi- because they dramatically underesti- cause a loved one comes home with as- nancing cost. mated the number of claims, claimants bestos on their work clothes. I had a In addition to that, the amount of today are getting 5 cents on the dollar. family come to me where both the revenue in the trust fund may well re- Five cents on the dollar. That could mother and the daughter became ill be- duce revenue. In fact, CBO notes that happen to victims. The other possi- cause the husband brought asbestos revenues will be, at most, $140 billion, bility, of course, is that people will home on his work clothes and that and that revenues could be signifi- come to Congress and say: Look, you made them ill. They will have claims. cantly less. designed this fund. You said it was Then there was no provision for CT When we put all of these factors to- going to produce. You said it was going scans, which were omitted; that is, gether, our analysis, using very con- to work. Now it has failed. You have to costs associated with using CT scans servative assumptions, including the pony up. You have to pay. What do my for plural abnormalities as evidence of asbestos trust fund, faces a shortfall of colleagues think is the most likely asbestosis. at least $150 billion over its lifetime or outcome in the years ahead? It also omitted the cost of compen- $50 billion in net present value. CBO has also confirmed that the sating victims at other Libby-like Using what I believe is a more real- long-term spending point of order ex- sites. Libby is an unusual cir- istic estimate of future cancer claims, ists against this legislation. Here is cumstance, but it is not the only one the 133,000 average in the Tillinghast what they said, and this was on Feb- where an entire community has been study, the shortfall would grow to ruary 13, yesterday: badly hurt. That will increase the cost. nearly $300 billion. That really Substantial payments from the fund would We have only found one area where shouldn’t be a surprise because if we continue well after 2015. Consequently, pur- there might be potential savings, and look at what has happened with other suant to section 407 of H. Con. Res. 95, CBO that is the medical studies area. That funds like this, what we have found is estimates that enacting the bill as amended

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Operating the Asbestos Injury Claims Res- been our position from day one, and CBO, in their letter today to Senator olution Fund would be an entirely new gov- that is what the bill says today: not a CONRAD, repeated: ernmental task, and CBO and other analysts single dollar is spent. In fact, the CBO CBO concluded in its February 13 letter to have little basis for judging how the fund’s states that over the life of the fund, Senators Gregg and Specter that the pro- administrator would implement the legisla- whether or not it sunsets, we would not posed amendment would be deficit-neutral tion. expect the legislation to add to the ag- over the life of the fund. CBO’s estimate shows that the asbes- gregate Federal debt. It just doesn’t So there is no Federal money in- tos bill will worsen the Federal deficit add to debt. The Federal Government volved, pure and simple, and there is no by $7 billion over the first 10 years. We is involved only because it acts as a basis to say that the budget would be believe that is very conservative. We conduit for the private funding of $140 impacted, so that on the merits, there believe the amount of increase to the billion. All the parties said they want- is no basis for this point of order. The practical application is that if deficit will be far in excess of that ed that in the Department of Labor be- this point of order is sustained, this when we adjust for the dormant claims, cause they had the experience and the bill will die. This is an issue which has when we adjust for the debt service, infrastructure necessary to set up a been before the Judiciary Committee when we adjust for the other expenses quick start for the victims. for the better part of three decades, that have been left out. We have heard the figures about pro- and it has been before the committee There have been some who have said: jection of interest rates. If we follow in the past 3 years on a very intense Well, these really aren’t Federal funds. those projections, the interest rates basis. The majority leader has set aside Oh, yes, they are. These are Federal would have to be at 25 percent. Twen- 2 weeks for the consideration of this funds because the money, just as it is ty-five percent. Even with the recent bill. If this point of order is overruled, in all of these instances of trust funds, increases by the Federal Reserve we will proceed to a cloture vote to- is considered Federal—in the airport Board, we are still way in the low sin- morrow, and we will proceed to take up and airway trust fund, in the black gle digits. amendments, and we have a realistic lung disability fund, in the hazardous The CBO considered all the esti- chance of concluding this bill yet this substance Superfund, in the highway mates. They met with dozens of finan- week. It is backed up against a recess trust fund, and in the unemployment cial experts, economists, auditors, ev- period, and we have a chance to finish insurance fund. It doesn’t matter that, erybody. They say payments were yes, there are private funds here; with- this bill. raised from $120 billion to $150 billion, If this point of order is sustained, out question, that is part of the pic- at most. They said $140 billion will ture, but it is not the whole picture. In then the work which Judge Becker has cover all claims, payments, adminis- done in presiding over some 36 meet- every one of these cases where we have trative costs, and borrowing costs. private funds being mixed with Govern- ings, attended by 20 to 50 to 60 rep- That is why we have the financial in- resentatives, countless meetings, will ment funds, the final result is consid- stitutions, we have our veterans, we ered governmental payments. The be in vain. If the point of order is have labor. As this chart shows, labor upheld, the bill is gone. If it is rejected, above trust funds receive ‘‘private’’ re- organizations are strongly for it. ceipts that are designated for specific there will be ample opportunity for Then we ought to keep in mind that amendments to be presented and for purposes. Spending from these trust these are the people who are not going funds is treated as Federal. the bill to be improved. to recover unless this bill goes There are those who wish to offer an At the end of the day, we have to through, and 26 veterans organizations alternative of a medical criteria bill. I make a judgment. Some have said: The have come out to say they oppose this do not think a medical criteria bill is Federal Government’s exposure is lim- budget point of order. Twenty-six vet- as good as the current bill because the ited, it is restricted, because after $40 erans organizations oppose it because medical criteria bill would not cover billion, it shuts down. I think we have they know they need this bill. employees whose companies are bank- to ask ourselves: Is that likely? Is that Mr. President, I yield the remainder rupt or veterans who have no one to really likely to occur? Can we imagine of my time to the distinguished Sen- sue. But at least that would be an al- the companies being told they owe $40 ator from Pennsylvania. ternative which would be preferable to billion back to the Federal Treasury Mr. SPECTER. Mr. President, I the current system. I believe it is fair and they are exposed to going back to would like to comment briefly on the to say that the Presiding Officer might court? If we want a march on Wash- disagreement I had with the Senator be attracted to a medical criteria bill, ington, enact this legislation, because from Illinois, Mr. DURBIN. He has made and certainly many who oppose the it will go insolvent in the second 10- the false representation that there is a trust fund would prefer to have some- year period, according to our esti- secret list of who is going to provide thing such as a medical criteria bill mates, and we will have a run on Wash- the money. It is not a secret list. It has rather than have nothing. ington unlike anything we have seen in been made available, and I offered it to If the point of order is upheld and the the modern age. him on the floor. But under the law, bill is dropped, you can’t do anything. I yield the floor. when it contains confidential informa- There is a question as to whether it is The PRESIDING OFFICER. Who tion, it is available for the Senators germane, but that is a matter for the yields time? and their staffs and those preparing the Parliamentarian and that is a matter Mr. LEAHY. Mr. President, how legislation, but it is not available for for ingenuity and that may be worked much time is remaining to the various the general public on trade secrets. out. If you do not go to a medical cri- parties? When the bill is certified, then it goes teria bill, there are germane amend- The PRESIDING OFFICER. The Sen- into the public record and the public ments which could be offered to change ator from Vermont has 15 minutes, and domain. But to say that it is a secret the medical criteria. the Senator from Nevada has 8 min- list is the purest form of demagoguery Here again, I am opposed to the utes. That is all the remaining time. and a specious argument. modifications, but they could be made Mr. LEAHY. Mr. President, I am pre- On to the essential point of this and the bill could be altered. The whole pared to yield the remainder of my budget point of order, it does not have beauty about the Senate is that—when time to the Senator from Pennsyl- any substantive merit because there is we have these complex issues and we vania, but I would like to make just a no Federal money involved. The Fed- have the synergism of 100 Senators and couple of points, if he doesn’t mind, be- eral Government is implicated only be- our staffs—with our experience, with fore I do that. cause the Department of Labor is a our analysis of what we have done, we Mr. President, with all of the talk, conduit. That is the only reason the have a chance to establish public pol- let us not lose sight of a couple of Federal Government is involved. icy in the interests of Americans.

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00032 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1167 Everybody agrees. Not one person second. The question is on agreeing to well-intentioned, but it is ill-con- who has taken the floor has disagreed the motion. ceived. It would deprive asbestos vic- with the enormity of the problem. Ev- The clerk will call the roll. tims of their right to obtain compensa- erybody agrees that it is horrible that Mr. LEAHY. Mr. President, I suggest tion for their injuries in court and people are dying of deadly diseases the absence of a quorum. throw them into an administrative sys- from exposure to asbestos and have no The PRESIDING OFFICER. No re- tem that is doomed to fail. It is one from whom to collect. sponse having been made to the roll- doomed to fail. There is disagreement about how to call, the quorum call is in order. If someone doesn’t like the entitle- handle it. There is no disagreement The clerk will call the roll to ascer- ment programs in this country, then about the tremendous amount of work tain the presence of a quorum. you should hate this bill before us be- which has been done in this bill. On a The assistant legislative clerk pro- cause it is another entitlement pro- strictly personal level, the committee, ceeded to call the roll. gram, and it will make the black lung the staffs, and I have put in countless Mr. REID. Mr. President, I ask unan- program look insignificant. hours that ought not to go down the imous consent the order for the This program started at $3 billion; it drain on a technicality. If we have this quorum call be rescinded. is now $41 billion and on the rise still. bill on the floor for 3 more days this The PRESIDING OFFICER. Without The trust fund is undercapitalized week and if at the end of that time, or objection, it is so ordered. and structured in a way that will de- whatever time the bill is on the floor, Mr. REID. Mr. President, I will use prive seriously injured victims of fair there is a decision made that no bill is leader time, in that all time has ex- treatment. better than the bill we come to, then so pired. The bill is opposed by every major as- be it. It is rejected. But to have it re- Mr. President, I urge my colleagues bestos victims group, as well as numer- jected on a technicality is a terrible to vote ‘‘no’’ on the motion to waive ous scientists and doctors and experts waste of so much time and effort which the valid budget point of order raised on asbestos-caused diseases, and nearly has gone into bringing this bill to this by my colleague, Senator JOHN ENSIGN. every labor union. In addition, virtually the entire in- position. This is not a technicality, it is the ab- surance industry and a large number of I have made a statement which I be- solute foundation of this flawed pro- small- and medium-sized businesses op- lieve to be true—although I can’t prove gram, this trust fund. A vote on the pose this bill. It is death to too many it—that there has never been a bill sub- budget point of order is the key vote on companies. jected to more analysis and scrutiny this bill. Cloture was filed last night by the People stand on the floor of the Sen- than this bill. Or in the alternative of ate and talk about cases where they accepting that assertion—I know it is a majority leader on both the bill and the Specter substitute amendment. have had to file bankruptcy. When grandiose assertion—can anybody those companies went into bankruptcy, point to any bill which has had more The first cloture motion will ripen to- morrow morning. The effect of that ac- they did just fine. Victims did not get analysis or more scrutiny? What a their money but others did. A lot of the waste it would be to have it dismissed tion will be to ensure there will be no meaningful opportunity to amend this companies have come out of bank- on a technicality when the con- ruptcy. sequences are that thousands of vic- bill. The chairman of the committee says Yesterday, Senator FRIST and I re- tims of asbestos will continue to die ceived a letter signed by more than 350 without compensation, the 77 compa- we should not defeat the bill on a budg- et point of order and should instead at- individual veterans and their families, nies now in bankruptcy will be multi- representatives of large numbers of plied, and the economy will withstand tempt to improve the bill by amend- ment. Mr. President, please, that is not people around this country. a $300 billion loss. Among other things in this letter, very sensible. The majority leader’s de- Let us take 3 more days, as we have they state: taken the past 3 years, to see if we can cision to file cloture last night com- pletely undercuts that argument. We are aware of the repeated claims by produce a bill which will satisfy the proponents of S. 852 that this legislation is critics of the present measure. There is no serious chance this bill will good for veterans. We are also aware that We have done a count as to how the be improved through amendment. several veterans’ organization officials have Senators are going to vote. It is impos- Why do I say that? After cloture is endorsed the legislation. We, as individual sible to say with certainty exactly invoked on the substitute, only ger- veterans and families, want to make it clear what is going to happen. There are too mane amendments will be in order, and that these officials and organizations do not many people who are still undecided. after the substitute is adopted, no represent the position, nor the complete po- sition, of the veterans’ community. We So as I talk to my 99 colleagues, I ask amendments at all will be in order. Many of the most important amend- strongly oppose this legislation. We believe you to weigh very heavily this vote be- that a system as envisioned by S. 852 would cause this is a measure, as many are, ments to the bill are highly relevant exacerbate, not relieve, the suffering of vet- which might be decided by a single but nongermane. There are lots of erans with asbestos-related diseases. vote. Why let it all go down the drain them. The budget point of order before us is on a technicality when we might be How about the amendment of Sen- significant and goes to the heart of the able, in the course of 3 more days, to ator LINDSEY GRAHAM to deal with en- bill. In addition to being unfair to vic- produce something which would be sat- vironmental exposure to asbestos tims, the bill is unfair to the Federal isfactory to a majority of this body? across the country? Senator GRAHAM’s taxpayer. Mr. President, how much time do I amendment, which he has talked about I repeat: I have received calls in re- have remaining? for months now, dealing with asbestos cent days from Karl Rove saying: What The PRESIDING OFFICER (Mr. exposure around the rest of the coun- are we going to do about entitlement CHAMBLISS). The Senator has 3 minutes try would not be in order. That is hard programs in this country? 15 seconds. to accept. There are many other He, of course, is concerned. Mr. SPECTER. I am willing to yield amendments of comparable signifi- We have a debt ceiling vote that is back the remaining time if the Senator cance to that of Lindsey Graham. Any going to be coming up in the next sev- from Nevada is. Senator with concerns about the bill eral weeks. That is why he called me Mr. ENSIGN. Yes. should vote to sustain the point of on behalf of the President. Mr. SPECTER. Mr. President, par- order because the only meaningful way If he is concerned about the entitle- liamentary inquiry: The pending mo- to improve the legislation is by com- ment programs that are now in exist- tion is my motion to waive? mitting it back to the Judiciary Com- ence, they should really be frightened The PRESIDING OFFICER. The Sen- mittee. about this one. This is open ended. ator is correct. I have said that Senator DURBIN and Some have said it will be as much as Mr. SPECTER. Mr. President, I ask I will work with Senator CORNYN and $600 billion underwater. for the yeas and nays. others to find an alternative approach The budget point of order raised by The PRESIDING OFFICER. Is there a along the lines of the Texas and Illinois Senator ENSIGN is clearly valid. Yester- sufficient second? There is a sufficient State statutes. The pending bill may be day, responding to an inquiry from

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You can dustry, it has since paid out more than by the committee for three decades. manipulate, twist, and try to say it $41 billion, borrowing some $9 billion But let us have 3 more days with all doesn’t say what it says, but they say from the Treasury.’’ the work that has been done to bring it it violates section 407 of the Budget They acknowledge that the bill be- to this point. Everyone agrees with the Act. CBO estimates that enacting the fore us is bad. need for a bill. bill as amended would cause an in- There are alternatives to solving this Everyone agrees there are tens of crease in net direct spending. difficult problem. My friend, the distin- thousands of asbestos victims who are In the same letter, the Congressional guished junior Senator from Texas, is dying without compensation because Budget Office predicted that in the on the Senate floor. I pledge to work their companies are bankrupt, or be- years 2006 through 2015, the cost of the with him on his proposal to establish a cause they are veterans who sustained fund will exceed industry contributions medical criteria system that will as- their injuries in the service and have to it by at least $6 billion. The only sure a more orderly resolution of the no one to sue. Everyone agrees it has a way to make up that difference is to asbestos claims. That is the way it is tremendous impact on the economy. borrow it. Who do you borrow it from? going to be no matter what the out- So let us take 3 more days. This vote From the Federal Treasury. come of this. The current bill is not the is razor thin. Nobody knows how it is In a letter to Senator CONRAD today, answer. going to come out. It may well be de- the Congressional Budget Office high- I urge my colleagues to establish a cided by a single vote, as so many lighted the extraordinary uncertainties medical criteria system that will do votes are in this body. associated with the cost of this bill. what we think should be done. I ask each of my colleagues to ponder Senator CONRAD read parts of this I very much appreciate the work of carefully—there are many, as last re- into the RECORD today, as have others. Senator LEAHY and Senator SPECTER. I ported, undecided—and give us the ben- Senator CONRAD, of all people in this think these two Senators have done a body, of all people in this body, is seen efit of the doubt. Give me the benefit of wonderful job and are doing the best as a fair man. His main concern about the doubt as chairman of the com- they can. what is going on in Government today mittee who has brought this forward. If my friend, Senator SPECTER, is on is spending. Give the Judiciary Committee the ben- I remind everyone that when Senator the floor, I would be happy to ask efit of the doubt, and give the benefit unanimous consent that he be allowed CONRAD was elected in 1986, he took a of the doubt to substantially more vow. He said: If the budget is not re- to speak to respond to anything I have than 50 Senators. We are at least in the duced by the time I stand for reelec- said, if he believes that is appropriate. high fifties—maybe higher. But give us tion, I will not run for reelection. He No one on our side will object. I have the benefit of the doubt with 3 more fulfilled that commitment because the finished using my leader time. I would days of the time of the Senate. budget deficit had not gone down. He is be happy, if he feels so inclined, to ask I thank the Chair. I thank the Sen- a man of his word. unanimous consent that he be given ator from Nevada for yielding. Unfortunately, the sitting Senator, whatever time he wants to respond to The PRESIDING OFFICER. All time Mr. Burdick, died, and as a result Sen- what I said. having expired, the question is on ator CONRAD is back with us. But he Mr. SPECTER. Mr. President, I agreeing to the motion. The yeas and gave up his Senate seat because he be- thank the Democratic leader for that. I nays have been ordered. The clerk will lieved the deficit was not right. shall accept it. call the roll. I think those of you on the other side Mr. REID. How much time does the The legislative clerk called the roll. of the aisle who have worked with Sen- Senator need or want? Mr. DURBIN. I announce that the ator CONRAD would have to acknowl- Mr. SPECTER. I didn’t know there Senator from Hawaii (Mr. INOUYE) is edge that when he deals with matters was a limitation on how much I want. necessarily absent. of fiscal responsibility of this country, Mr. REID. As minority leader, I was The PRESIDING OFFICER. Are there he is fair. His own individual analysis entitled to 10 minutes. I think any- any other Senators in the Chamber de- indicates that this will be at least $150 thing over that would be out of the or- siring to vote? billion and maybe as much as $290 bil- dinary. The yeas and nays resulted—yeas 58, lion in the red. Mr. SPECTER. I will take less than 5 nays 41, as follows: minutes. I remind my colleagues that this bill [Rollcall Vote No. 21 Leg.] effectively creates an entitlement for Mr. REID. Mr. President, I ask unan- YEAS—58 asbestos victims and obligates the Fed- imous consent that Senator SPECTER eral Government to provide compensa- be allowed to speak for up to 6 min- Alexander Dodd Lugar Allard Dole Martinez tion to those victims. Throughout the utes. Allen Domenici McConnell fund’s existence, the Federal Govern- The PRESIDING OFFICER. Without Baucus Enzi Murkowski ment is obligated to pay regardless of objection, it is so ordered. Bayh Feinstein Roberts Mr. SPECTER. Mr. President, what- Bennett Grassley Santorum the actual amount raised by the fund Bond Hagel ever arguments are advanced by skill- Sessions through company contributions; thus Brownback Harkin Shelby Burns Hatch this obligation remains so long as the ful advocates and skillful Senators, the Smith Burr Hutchison fund is operational. Experts conclude underlying question of this budget Snowe Carper Isakson Specter that the amount of payouts will out- point of order is whether the budget Chafee Jeffords pace the contributions to the fund not will be impacted and hurt. The fact is, Chambliss Kohl Stabenow there is no Federal money. So there is Coburn Kyl Stevens just in the near term but in the long Talent no substantive merit to the point of Cochran Landrieu term as well. Coleman Leahy Thomas I say to my friends, Democrats and order. The Federal Government is im- Collins Levin Vitter Republicans, read the Wall Street plicated only because the Department Cornyn Lieberman Voinovich Journal of today. If there is ever a pub- of Labor is involved as a conduit. Craig Lincoln Warner DeWine Lott lication that is concerned about what That is fact No. 1. is happening to the financial situation Fact No. 2 is if this budget point of NAYS—41 in this country, we all have to ac- order is upheld, this bill is killed after Akaka Conrad Frist knowledge it is the Wall Street Jour- 3 intense years of work, with hundreds Biden Crapo Graham Bingaman Dayton Gregg nal. I don’t like a lot of their political of meetings, with numerous con- Boxer DeMint Inhofe editorials. But whenever they talk ferences, and 36 meetings presided over Bunning Dorgan Johnson about money, I read and listen. by Judge Becker and myself. And there Byrd Durbin Kennedy In an editorial this morning, that will be no opportunity to have amend- Cantwell Ensign Kerry Clinton Feingold Lautenberg newspaper pointed out, for example, re- ments to improve it.

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00034 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1169 McCain Obama Sarbanes The PRESIDING OFFICER. Objec- floor at some appropriate time if there Menendez Pryor Schumer tion is heard. is indication to do so in the future. Mikulski Reed Sununu Murray Reid Thune Mr. FRIST. Mr. President, I had We did have one absentee vote to- Nelson (FL) Rockefeller Wyden hoped we would at least be able to pro- night that could have made the dif- Nelson (NE) Salazar ceed to that bill tonight. As our col- ference, and with that I switched my NOT VOTING—1 leagues know, this bill is ready to go. vote. I do want to make it very clear, Inouye It is an important bill. It is important because there is always misunder- for the safety and security of the standing in terms of when a Senator The PRESIDING OFFICER. On this American people. It is a bill we have switches his vote, I strongly support vote, the yeas are 58, the nays are 41. worked on for a long period of time, the Specter-Leahy bill, and I switched Three-fifths of the Senators duly cho- and we believe there is overwhelming my vote for procedural reasons. sen and sworn not having voted in the support for this bill. The consent I So this vote did reflect 59 to 40 on the affirmative, the motion is rejected. asked for was for the Senate to begin floor, although the actual vote is de- The majority leader is recognized. consideration of that legislation. We picted as 58 to 41. Mr. FRIST. Mr. President, I enter a had the objection from the other side Let me also add, and I think I speak motion to reconsider the last vote. of the aisle that was expressed. for the majority of my colleagues, that The PRESIDING OFFICER. The mo- I now move to proceed to S. 2271. The I am disappointed in the fact we are tion to reconsider is entered. motion to proceed is now pending and not able to proceed with this asbestos Mr. FRIST. Mr. President, I switched is debatable. We have been told that litigation bill. The consequence of this my vote from a ‘‘yes’’ to a ‘‘no’’ vote. there will be an effort to filibuster the vote tonight is that victims who are in Without my switching the vote, it motion to proceed. Therefore, I now need are not going to receive fair and would have been 59 to 40. We have one send a cloture motion to the desk and just compensation. They deserve it. absentee tonight, and that may well ask for its consideration. They need it. The problem has been have determined which way this par- The PRESIDING OFFICER. The clo- clearly spelled out on the floor of this ticular vote had gone. Thus, I switched ture motion having been presented body. my vote from a yea to a nay, thus the under rule XXII, the Chair directs the We have made progress over the last vote was 58 to 41. That allows us to, at clerk to read the motion. couple of weeks in that people recog- some point in the future, have the op- The legislative clerk read as follows: nize this is a serious problem that has tion to reconsider the motion. We will CLOTURE MOTION gone on for too long, yet has to be ad- make a decision on that at some point We the undersigned Senators, in accord- dressed in a legislative way, that it de- in the future. ance with the provisions of rule XXII of the nies justice to victims, that it hurts The PRESIDING OFFICER. The Standing Rules of the Senate, do hereby and punishes our economy and, unless point of order against the bill is sus- move to bring to a close debate on the mo- it is addressed, will continue to destroy tained. Pursuant to section 312(f) of the tion to proceed to S. 2271: to clarify that in- dividuals who receive FISA orders can chal- jobs in this country. Budget Act, the bill is recommitted to Unfortunately, by refusing to move the Judiciary Committee. lenge nondisclosure requirements, that indi- viduals who receive National Security Let- forward on this bipartisan bill, a bipar- Mr. FRIST. Mr. President, I suggest ters are not required to disclose the name of tisan bill, the Senate chose to protect the absence of a quorum. their attorney, that libraries are not wire or special interest groups rather than the The PRESIDING OFFICER. The electronic communication service providers interests of those innocent victims who clerk will call the roll. unless they provide specific services, and for deserve more. The cost to our society The legislative clerk proceeded to other purposes. will be felt unless it is addressed some- call the roll. Bill Frist, James Inhofe, Richard Burr, Christopher Bond, Chuck Hagel, Saxby time in the future. Mr. FRIST. Mr. President, I ask I do thank all of those who acknowl- unanimous consent that the order for Chambliss, John E. Sununu, Wayne Al- lard, Johnny Isakson, John Cornyn, edge there is a real and serious problem the quorum call be rescinded. Jim DeMint, Craig Thomas, Larry that Congress should debate, and it The PRESIDING OFFICER (Mr. Craig, Ted Stevens, Lindsey Graham, must be resolved at some point in the THUNE). Without objection, it is so or- Norm Coleman. future. dered. Mr. FRIST. Mr. President, again, the The PRESIDING OFFICER. The Sen- f motion is pending, and if the Senators ator from Illinois. desire to debate the motion they Mr. DURBIN. Mr. President, I wish to USA PATRIOT ACT ADDITIONAL should be prepared to do so. The Chair address the issue that was just consid- REAUTHORIZING AMENDMENTS is obligated to put the question. I put ered before the Senate and say that I ACT OF 2006—MOTION TO PRO- Members on notice that they should re- hope, now, that we can work together CEED main on the floor if they feel the need on a bipartisan basis to find some ac- Mr. FRIST. Mr. President, in a few to hold up this important legislation; commodation—not to create a trust moments I will have a very brief state- otherwise, we will be proceeding to the fund, in an amount that has never been ment about what went on with the vote underlying bill. established, with contributions that on the asbestos bill, but for our col- Mr. FRIST. Mr. President, with re- have never been disclosed publicly but, leagues, I wish to outline where we are spect to the vote we took minutes ago rather, something that is much more going tonight and over the next several on the asbestos legislation, it does open and transparent. days. mean that legislation is, in essence, off The starting point is obvious. Some Calendar No. 360, S. 2271, is the USA the floor now, and that we are pro- States have already addressed this PATRIOT Act Additional Reauthor- ceeding with the consideration of the issue with significant changes in the izing Amendments Act. This bill ad- PATRIOT Act, although we have an ob- existing tort system that make it more dresses some of the concerns of Mem- struction underway and we have a fair and quicker for victims to get bers on both sides of the aisle as it re- threatened filibuster underway, and we compensation. I think that is the way lates to the PATRIOT Act. I believe will address that in the coming days. to address this, and I hope that now we that we strongly support it and we are The vote on the motion to waive the can have an effort by Members from prepared to consider this measure next. point of order on the asbestos bill was both sides of the aisle on a bipartisan Therefore, I now ask unanimous con- 59 to 40. In order to have the option to basis to establish this. sent that the Senate proceed to the keep a heartbeat at least in this piece I do quarrel with the leader’s conclu- consideration of S. 2271, the USA PA- of legislation, because it is so impor- sion that special interests defeated this TRIOT Act Additional Reauthorizing tant to victims, to our economy, to legislation. Let’s be very honest with Amendments Act of 2006. jobs, what I did, as an advocate for the the American people. This bill was a The PRESIDING OFFICER. Is there Specter-Leahy bill, is I switched my clash of the special-interest titans on objection? vote from yes to no. From a procedural both sides. Senator BENNETT of Utah, Mrs. BOXER. Mr. President, on be- standpoint, what that allows me to do on the other side of the aisle, whom I half of Senator FEINGOLD, I object. as leader is to bring that back to the respect very much, came to the floor

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We left that un- tack on December 4, 2005, en route to cial interest but 10 companies that done—underfunded from last Congress. Baghdad. Two soldiers were killed in were $20 billion ahead if this bill passed I think there is bipartisan support—I the immediate aftermath, Sergeant were not special interests defies a ra- know there is—for us to return to that First Class Richard Schild and Staff tional explanation. issue, another one which will help a lot Sergeant Daniel Cuka. Specialist I would also add that I think we have of needy families, vulnerable Ameri- Kokesh suffered severe wounds, and to consider the fact that when we come cans across our Nation who are faced after being medically evacuated out of down to consider this bill, there is with staggering and record heating Iraq, he was transferred to the Brook going to have to be give and take on bills. That, again, is an issue that does Army Medical Center at Fort Sam both sides, and I hope we can reach not have a special interest constitu- Houston in San Antonio, TX. that point. Those in the legal commu- ency, but it is certainly one that fami- Sadly, Specialist Kokesh didn’t re- nity, as well as those who represent the lies are concerned about across our cover from his wounds and died after businesses and insurance companies country. developing severe complications. He who have stakes in this fight, have to I know we are not ready to bring up was a graduate of Yankton High School be willing to give some ground and to the issue of health care because we and is remembered as a scholar athlete. work toward compromise. need to do some work on it. For 5 In fact, he was a member of the I came to Congress years ago, and years, we have done virtually nothing Yankton High School championship when I arrived the first issue with and the cost of health insurance has football team that won the 2002 Class which I was confronted was asbestos. It gone up, the coverage has gone down, 11AA State title. The leadership skills is still here today and there are more people are more vulnerable today than Specialist Kokesh demonstrated during victims today and we have to find a they were a few years ago and more high school were clearly evident when he joined the South Dakota National reasonable way to help those victims. people are uninsured. We ought to be Guard that same year. He even success- I am heartened by Senator CORNYN of talking about reasonable bipartisan ef- fully convinced a fellow classmate, and Texas, who has been willing to come to forts to deal with health insurance and member of his football team, to join this floor and talk about the medical making it more affordable and more the National Guard the following year. criterion alternative. I don’t know if accessible for every American family. we can reach an agreement, but I sure While I am deeply saddened by the That is something that could be done. loss of any military member serving in want to try. I have said to my col- When some come to the floor and leagues on this side of the aisle who did defense of our great Nation, the loss of say: This is the No. 1 issue facing Con- the brave soldiers in the 147th hits not agree with the disposition on the gress, the people I represent think last vote that we should put our heads close to home. My oldest son, Brooks, there are other issues far more impor- served in that unit prior to joining the together and see if we can come out tant, issues that relate to their every- with a reasonable answer to this chal- Army as an enlisted soldier with the day lives and the livelihoods of their 101st Airborne Division. On behalf of lenge we face. I sincerely hope that can families. I hope we can return to those be done. my entire family, I extend our heart- issues. felt condolences to Specialist Kokesh’s I do have to say I wish the first bill We have expended a lot of effort and we were considering would not have family and friends. energy on this issue. Perhaps by work- Specialist Kokesh’s commitment to been this so-called Armageddon of the ing on a bipartisan basis we can find a special interest groups. Wouldn’t it his fellow members of the South Da- way through this. But in the mean- kota National Guard, as well as all have been much better for us to have time, let’s take up some of these equal- those who served in uniform with him, considered Medicare prescription drug ly important, if not more important, is a testament to the strength of his Part D reform when we have millions issues for families across America. character and the family that instilled of seniors across America struggling to I yield the floor and suggest the ab- in him these values. His dedicated serv- understand this complicated system, sence of a quorum. ice to our grateful Nation will never be wrestling with plans that may offer the The PRESIDING OFFICER. The forgotten. drugs that they need for their life-and- clerk will call the roll. f death situations; wanting the phar- The legislative clerk proceeded to macies they have always trusted to be call the roll. DEFENSE AUTHORIZATION, 2006 included; hoping that they can pay the Mr. FRIST. Mr. President, I ask Mr. LEVIN. Last week, Senator KYL price of this plan? unanimous consent the order for the placed a statement in the CONGRES- I hear from these people every day. quorum call be rescinded. SIONAL RECORD regarding the Graham- You would think that Members on both The PRESIDING OFFICER. Without Levin amendment, which was enacted sides of the aisle would be receiving objection, it is so ordered. last year as section 1405 of the National these phone calls and, if they have, you Defense Authorization Act for Fiscal wonder why that was not the first bill f Year 2006 and as section 1005 of the De- that was brought up. It would have MORNING BUSINESS tainee Treatment Act of 2005, as in- been a reasonable thing. Some have Mr. FRIST. Mr. President, I ask cluded in the Department of Defense even suggested we should have brought Appropriations Act, 2006. Senator KYL up ethics reform before we did any- unanimous consent there now be a pe- riod for morning business with Sen- and Senator REID cosponsored the thing else, and we have introduced a Graham-Levin amendment in the Sen- ators permitted to speak for up to 10 bill on the Democratic side that will ate. minutes each. try to move toward significant ethics Senator KYL argues that this provi- reform. I hope those on the Republican The PRESIDING OFFICER. Without sion was intended to retroactively strip side who feel the same way will join us objection, it is so ordered. the Federal courts, including the Su- and make their own suggestions. But f preme Court, of jurisdiction over pend- shouldn’t we move to that legislation? ing cases. Senator KYL’s statement at- HONORING OUR ARMED FORCES That may not be popular with some of tached a January 18, 2006, letter from the power brokers in this town, but if SPECIALIST ALLEN KOKESH, JR. Senator KYL and Senator GRAHAM to we want to restore the confidence of Mr. JOHNSON. Mr. President, today I Attorney General Gonzales, which the American people in Congress and pay tribute to Specialist Allen Kokesh, makes the same argument. the people who work here, it certainly Jr. who died on February 7, 2006, from As I stated when the Graham-Levin ought to be high on their agenda. injuries sustained while serving in amendment was before the Senate and

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In in- vision to pending cases was so clear had already assumed jurisdiction at troducing the new Graham-Levin that the administration’s allies in the the time the statute was passed. amendment, Senator GRAHAM did not House tried in vain to alter the lan- I do not believe that the unexpressed specifically address the issue of the guage of the effective date provision to intentions or after-the-fact statements amendment’s effect on pending cases make the jurisdiction-stripping provi- of Senators—Senator KYL, myself, or before yielding the floor to me. I did sion apply retroactively to pending anyone else—can change the facts or address the issue. In particular, I ex- cases, as it had in the original Graham the legislative history that existed at plained to the Senate that one of the amendment. I objected to this lan- the time Congress acted on a piece of principal reasons that so many of us guage, and it was rejected by the Sen- legislation. The relevant consider- voted against the prior version of the ate conferees. ations are the language of the law amendment was its effect on pending At CONGRESSIONAL RECORD page itself, the changes that were made to cases and that this problem had been S14,258, I explained this history when that law as it went through the draft- addressed in the Graham-Levin amend- the Senate adopted the conference re- ing process, and what was clearly stat- ment that was then before us. I stated port on December 21, 2005: at CONGRESSIONAL RECORD page S12,755: ed before the bill was voted on by the Under the Supreme Court’s ruling in Lindh Senate. I make this statement today The other problem which I focused on last v. Murphy, 521 U.S. 320, the fact that Con- Thursday [November 10] with the first for the sole purpose of reiterating that gress has chosen not to apply the habeas- Graham amendment was that it would have stripping provision to pending cases means history. stripped all the courts, including the Su- While section 1405(e)(1) provides that that the courts retain jurisdiction to con- preme Court, of jurisdiction over pending sider these appeals. Again, the Senate voted ‘‘no court, justice, or judge shall have cases. What we have done in this amend- affirmatively to remove language from the ment, we have said that the standards in the jurisdiction to hear or consider an ap- original Graham amendment that would amendment will be applied in pending cases, plication for a writ of habeas corpus,’’ have applied this provision to pending cases. but the amendment will not strip the courts the applicability of this language to The conference report retains the same effec- of jurisdiction over those cases. For in- tive date as the Senate bill, thereby adopting pending cases is addressed in a separate stance, the Supreme Court jurisdiction in the Senate position that this provision will provision—section 1405(h)—the struc- Hamdan is not affected. . . . I cosponsored not strip the courts of jurisdiction in pend- ture and history of which make it clear the Graham amendment with Senator that the courts are not stripped of ing cases. Graham because I believe it is a significant Let me be specific. cases over which they have already as- improvement over the provision which the The original Graham amendment approved sumed jurisdiction. Senate approved last Thursday. . . . The di- by the Senate contained language stating Section 1405(h) clearly provides that rect review will provide for convictions by that the habeas-stripping provision ‘shall only one portion of the act applies to the military commissions, and because it apply to any application or other action that pending cases: sections (e)(2) and (e)(3), would not strip courts of jurisdiction over is pending on or after the date of the enact- these matters where they have taken juris- ment of this Act.’ We objected to this lan- which govern direct appeals from final diction, it does, again, apply the substantive decisions by military commissions and guage and it was not included in the Senate- law and assume that the courts would apply passed bill. CSRTs. The rest of the statute becomes the substantive law if this amendment is An early draft of the Graham-Levin-Kyl effective ‘‘on the date of enactment,’’ agreed to. However, it does not strip the amendment contained language stating that which, as Justice Scalia has pointed courts of jurisdiction. the habeas-stripping provision ‘shall apply to out, ‘‘is presumed to mean ‘shall have Senator GRAHAM took the floor again any application or other action that is pend- prospective effect upon enactment,’’’ immediately after I concluded my ex- ing on or after the date of the enactment of Landgraf v. USI Films. planation of what our new amendment this Act, except that the Supreme Court of At CONGRESSIONAL RECORD page S970, accomplished. He did not disagree with the United States shall have jurisdiction to Senator KYL argues that the original my statement about the effect of the determine the lawfulness of the removal, Graham amendment was never ‘‘modi- revised bill on pending cases anywhere pursuant to such amendment, of its jurisdic- tion to hear any case in which certiorari has fied to carve out pending litigation.’’ in his remarks. Indeed, neither Senator been granted as of such date’. We objected to He is incorrect. In fact, the amendment GRAHAM nor Senator KYL said anything this language and it was not included in the was modified, and it was modified for at that time to contest my very clear Senate-passed bill. the precise purpose of carving out statement that the new amendment did A House proposal during the conference pending litigation. not retroactively strip the courts of ju- contained language stating that the habeas- The original Graham amendment risdiction over pending cases. stripping provision ‘shall apply to any appli- specified that all provisions—including When the Senate approved the cation or other action that is pending on or the restrictions on habeas petitions— Graham-Levin Amendment by a vote of after the date of enactment of this Act.’ We 84 to 14 on November 15, 2005, I ex- objected to this language and it was not in- applied to pending cases. On November cluded in the conference report. 10, 2005, the original Graham amend- plained again at S12,802 that our Rather, the conference report states that ment was debated and adopted by the amendment would not strip the courts the provision ‘‘shall take effect on the date Senate by a vote of 49–42. At that time, of jurisdiction over pending cases: of the enactment of this Act.’’ These words I objected to the Graham amendment’s The Graham-Levin-Kyl amendment would have their ordinary meaning—that the provi- provision stripping jurisdiction in not apply the habeas prohibition in para- sion is prospective in its application, and pending cases. In fact, I explicitly graph (1) to pending cases. So, although the does not apply to pending cases. By taking amendment would change the substantive this position, we preserve comity between urged at CONGRESSIONAL RECORD page law applicable to pending cases, it would not the judicial and legislative branches and S12,663 that we not adopt this amend- strip the courts of jurisdiction to hear them. avoid repeating the unfortunate precedent in ment, in part, because ‘‘It would elimi- Under the Graham-Levin-Kyl amendment, Ex parte McCardle, in which Congress inter- nate the jurisdiction already accepted the habeas prohibition would take effect on vened to strip the Supreme Court of jurisdic- by the Supreme Court in Hamdan.’’ the date of enactment of the legislation. tion over a case which was pending before Because of my concerns, after the Thus, this prohibition would apply only to that Court. original Graham amendment was new habeas cases filed after the date of en- As a result, the language sought by adopted, I began working on a revised actment. The approach in this amendment the administration and its allies, which preserves comity between the judiciary and version of the amendment, which be- legislative branches. It avoids repeating the would have applied the jurisdiction- came known as the Graham-Levin unfortunate precedent in Ex parte McCardle, stripping provision to pending cases, amendment. This new version removed in which Congress intervened to strip the Su- was not included in the final version of the language applying the habeas re- preme Court of jurisdiction over a case the bill. strictions to pending cases, and instead which was pending before that Court. It was not until after we concluded limited its retroactive effect only to Again, neither Senator GRAHAM nor the conference and the conference re- the standards applicable to direct ap- Senator KYL offered a contrary inter- port passed the Senate on December 21,

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She is the reason intervention efforts to help the good GRESSIONAL RECORD stating their belief we have a national holiday that honors kids in the communities who are try- that the provision would not strip the Dr. King. ing so hard. Mothers and fathers courts of jurisdiction over pending While we remember the lives and shouldn’t have to worry about losing cases. deeds of Rosa Parks, Coretta Scott their children to gang violence in their Those statements, coming as they King, and countless others, we need to neighborhoods, and that is why I am did after the conclusion of the con- honor their memory not just with going to continue to give help to our ference and final action on the bill in words, but with deeds. We need to reex- communities to protect themselves. both the House and the Senate, carry amine what this country must still do We need to offer protection to the no more weight as legislative history to ensure equality every day. We need survivors of Hurricane Katrina in the than the statement that Senator KYL to evaluate the work we still need to gulf coast communities because the placed in the CONGRESSIONAL RECORD do to guarantee that African Ameri- Federal Government really let them last week or any other after-the-fact cans are not left behind when it comes down. I know the African-American statement in the CONGRESSIONAL to the issues that matter. community feels very prickly about RECORD. Both the contemporaneous This Black History Month, I am still this and feels abandoned. They should legislative history and the language concerned and dedicated to fighting for know that even though President Bush and structure of the Graham-Levin the issues that matter to African hires cronies and doesn’t have com- amendment itself demonstrate that Americans. We must make higher edu- petent people working for him, the this provision was not intended to, and cation more affordable for families. We American people haven’t abandoned did not, retroactively strip the Federal must fight for adequate health care. them. We are going to work to rebuild courts of jurisdiction over pending We must fight to keep our neighbor- the communities in Louisiana. We are cases. hoods and communities safe. We must going to get the survivors housing and jobs and health care. We are going to f fight to make sure the needs of Hurri- canes Katrina survivors are not forgot- open the schools. We are going to stick BLACK HISTORY MONTH ten. with them, and we are going to fight Ms. MIKULSKI. Mr. President, I rise The cost of college tuition has been for them. today during Black History Month to skyrocketing. It is putting stress on So this year during Black History celebrate and remember the rich his- the families and students who have to Month, I honor the memories of the tory of the millions of African Ameri- struggle just to be able to pay their great leaders who have come before us cans who have made this country what bills. That is why I have introduced with my commitment to fighting for it is today. legislation to create a tuition tax cred- these important year-round issues. And It is a time to honor leaders from it to families and to students who pay I am going to do it not just with words, across the country—some who are well for their own tuition. This legislation but with deeds. I urge you all to join known and others who are almost for- would offer a tax credit of up to $4,000 me. gotten. It is a time to cherish the pio- a year per student to help them with f neers to give them the recognition the cost of the education they deserve. ADDITIONAL STATEMENTS they deserve and to preserve their America needs our young people to names, faces, and stories for genera- know that they will not be limited by tions to come. the size of their wallet to follow their IN RECOGNITION OF DR. ROBERT This Black History Month, we espe- big dreams. W. GORE cially remember and mourn the recent I also want to assure African Ameri- ∑ Mr. CARPER. Mr. President, today I loss of two of the key players in the cans that they are not limited in the rise to recognize the lifetime of accom- civil rights movement Rosa Parks and health care they receive because of plishments of Dr. Robert W. Gore, who Coretta Scott King. spartan or skimpy funding for the was recently inducted into the Na- In October, we said goodbye to the health issues that affect them most. tional Inventors Hall of Fame. ‘‘First Woman of Civil Rights,’’ Rosa That is why I teamed up with Con- In 1957, during his sophomore year at Parks. When Ms. Parks refused to give gresswoman STEPHANIE TUBBS JONES in the University of Delaware, Bob Gore up her seat on a city bus in Mont- the Uterine Fibroids Research and Edu- came up with the idea of using gomery, AL, in 1955, we know that a cation Act of 2005, to double fibroid re- polytetraflouroethylene, PTFE, to in- movement had already begun, but she search funding and to launch an edu- sulate wire. Little did he know how poured fuel on the fire—inspiring the cation campaign for patients and phy- this seemingly simple idea would im- historic Montgomery bus boycott. She sicians. Uterine fibroids are a terrible, pact everything from supercomputers refused to give up her seat to a White painful ailment that plague mostly Af- to Arctic exploration. man because she was tired—tired of rican-American women. Fibroids affect In 1958, Bob’s parent’s, W.L. ‘‘Bill’’ being treated like a second-class cit- the entire family—not only the woman Gore and his wife Genevieve, began izen, tired of being forced to move be- who has to endure them but also those W.L. Gore & Associates in the base- cause someone else decided they de- who love her and who hate to see the ment of their Delaware home. Bill was served to sit more than she did. And lady they love in so much pain. They a research chemist at DuPont and, she became a model and a hero for me have gone ignored for too long. We based on Robert’s idea, developed and and generations of Americans looking need to fight for the resources to find patented a process for insulating wire to make our country truly the land of the cause, to find better treatments, with PTFE. the free. and hopefully to find a cure for this Bob Gore went on to graduate from And then we just lost another icon. devastating disease so that women and the University of Delaware 2 years Not only was Coretta Scott King mar- families don’t have to deal with this later and joined his parents in devel- ried to Dr. Martin Luther King Jr., but pain in their lives. oping and expanding their home busi- she was a pioneer with her own voice in Families also want to know the ness. After an order for 71⁄2 miles of in- the civil rights movement at a time neighborhoods they live in are safe. sulated cable from the city of Denver, when women were not often recognized The number of gangs nationwide and in W.L. Gore & Associates opened their for their own talents and merit. She my own home State of Maryland has first manufacturing plant in Newark, was resolute, but she was feisty—some- been rising. Families don’t want to DE, in 1961. one after my own heart. She founded have to worry about gang violence in In 1969, insulated cables from W.L. the King Center for Nonviolent Social their streets. That is why in Maryland Gore & Associates were used during the

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00038 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1173 first moon landing, connecting seismic First State remains a leader in innova- for the Congress and the Administra- readers to the landing craft during Neil tive products.∑ tion by the National Science Board en- Armstrong’s historic moonwalk. Also f titled, ‘‘Science and Engineering Indi- in 1969, Dr. Gore began manufacturing cators—2006.’’ This report represents cables for use in high-tech supercom- IDAHO’S FRIEND IN THE IRS the seventeenth in the series exam- puters. ∑ Mr. CRAPO. Mr. President, for the ining key aspects of the status of While many people would be satisfied first time in many years, Idaho tax- science and engineering in the United with having one of the most successful payers and, congressional staff will States. and cutting-edge companies in Amer- face the season without a very special GEORGE W. BUSH. ica, Bob Gore and his parents contin- friend in the business. Merry Trudeau, THE WHITE HOUSE, February 14, 2006. ued to explore the possibilities of local taxpayer advocate with the Inter- f polytetraflouroethylene. In 1975, a nal Revenue Service, is retiring after 30 EXECUTIVE AND OTHER spinoff of this compound, called ex- years of lending a compassionate ear COMMUNICATIONS panded polytetraflouroethylene, and helpful hand to many Idaho tax- ePTFE, was used to develop vascular payers. Over three decades of working The following communications were laid before the Senate, together with grafts that heart surgeons around the in different sections of the IRS but accompanying papers, reports, and doc- world still rely on today. Recognized most notably as a taxpayer advocate, uments, and were referred as indicated: for exceptional performance and qual- Merry distinguished herself on both ity, they have earned the endorsement sides of the phone. She helped many EC–5714. A communication from the Dep- of renowned surgeons worldwide and uty Director, Office of Protected Resources, Idahoans through the mazes of Federal National Oceanic and Atmospheric Adminis- are credited with saving countless tax law and working out resolutions to tration, transmitting, pursuant to law, the lives. different problems, and she was the report of a rule entitled ‘‘Taking and Import- In 1976, Bob Gore took the reigns as person who fellow employees reached ing Marine Mammals; Taking Marine Mam- CEO of W.L. Gore & Associates. This out to when they needed guidance. She mals Incidental to Rocket Launches from same year, the company received its is perhaps best known for her gen- Kodiak Island, AK’’ (RIN0648-AP62) received first order for GORE–TEX fabric, which erosity and willingness to volunteer on February 8, 2006; to the Committee on was the first fabric that was both wa- Commerce, Science, and Transportation. her time and resources with the Com- EC–5715. A communication from the Assist- terproof and breathable. Initially used bined Federal Campaign and helping ant Chief Counsel, Pipeline and Hazardous to make rainwear, this groundbreaking needy families and children enjoy Materials Safety Administration, Depart- fabric would revolutionize the clothing beautiful and plentiful Christmases. ment of Transportation, transmitting, pur- industry and forever change how people Merry’s grandchildren and husband suant to law, the report of a rule entitled interacted with their environments. will certainly enjoy all the additional ‘‘Hazardous Materials: Requirements for In 1990, GORE–TEX proved its tough- attention as she turns her time from Lighters and Lighter Refills’’ (RIN2137-AD88) ness in the wilds of Antarctica. An work to family and friends in retire- received on February 8, 2006; to the Com- international team of explorers wore mittee on Commerce, Science, and Transpor- ment. Still, people like Merry never tation. GORE–TEX outerwear while traversing truly retire from helping others, and I EC–5716. A communication from the Pro- the polar continent. After braving the am positive that her generosity, com- gram Analyst, National Highway Traffic wilds of this hostile environment, one passion, and kindness will continue to Safety Administration, Department of member of the team credited the revo- leave an indelible mark on all the lives Transportation, transmitting, pursuant to lutionary fabric with saving his life. she touches. My congratulations go to law, the report of a rule entitled ‘‘Anthropo- Besides the cutting-edge innovation Merry and her family as she opens the morphic Test Devices, Hybrid III 6-year-old Weighted Test Dummy’’ (RIN2127-AJ79) re- and consistent quality that W.L. Gore page to a new chapter in her life.∑ & Associates provides to its customers, ceived on February 8, 2006; to the Committee f on Commerce, Science, and Transportation. the organization has consistently been EC–5717. A communication from the Regu- ranked as one of the ‘‘100 Best Compa- MESSAGES FROM THE PRESIDENT lations Officer, Federal Highway Adminis- nies to Work For’’ by Fortune maga- Messages from the President of the tration, Department of Transportation, zine. This honor is especially signifi- United States were communicated to transmitting, pursuant to law, the report of cant when you think about the impact the Senate by Ms. Evans, one of his a rule entitled ‘‘Project Authorization and Agreements’’ (RIN2125-AF05) received on that a good corporate environment has secretaries. on the health and well-being of its em- February 8, 2006; to the Committee on Com- f merce, Science, and Transportation. ployees. The morale and team struc- EC–5718. A communication from the Acting ture that W.L. Gore & Associates uses EXECUTIVE MESSAGES REFERRED Director, Office of Sustainable Fisheries, Na- in its day-to-day work environment As in executive session the Presiding tional Marine Fisheries Service, National helps ensure that their employees con- Officer laid before the Senate messages Oceanic and Atmospheric Administration, tinue to provide the world with cut- from the President of the United transmitting, pursuant to law, the report of a rule entitled ‘‘Fisheries of the Exclusive ting-edge products that make our lives States submitting sundry nominations easier and better. Economic Zone Off Alaska; Pollock in Sta- which were referred to the appropriate tistical Area 610 of the Gulf of Alaska’’ (I.D. Bob Gore was named to the Univer- committees. sity of Delaware’s College of Distin- No. 012506A) received on February 8, 2006; to (The nominations received today are the Committee on Commerce, Science, and guished Alumni in 1990 and was in- printed at the end of the Senate pro- Transportation. ducted into the National Academy of ceedings.) EC–5719. A communication from the Pro- Engineering in 1995. In 2005, Dr. Gore gram Analyst, Federal Aviation Administra- was awarded the Perkin Medal, which f tion, Department of Transportation, trans- is considered to be one of the most REPORT PREPARED BY THE NA- mitting, pursuant to law, the report of a rule prestigious awards for applied chem- TIONAL SCIENCE BOARD ENTI- entitled ‘‘Airworthiness Directives; Pilatus Aircraft Ltd. Models PC-12 and PC-12/45 Air- istry. TLED ‘‘SCIENCE AND ENGINEER- By fostering an environment where planes’’ ((RIN2120-AA64)(2005-CE-35)) received ING INDICATORS—2006’’—PM 40 on February 8, 2006; to the Committee on people are free to test the boundaries Commerce, Science, and Transportation. of innovation, Bob Gore has created a The PRESIDING OFFICER laid be- fore the Senate the following message EC–5720. A communication from the Pro- workplace that encourages energy, en- gram Analyst, Federal Aviation Administra- thusiasm, and creativity. Whether it is from the President of the United tion, Department of Transportation, trans- extreme weather clothing, surgical States, together with an accompanying mitting, pursuant to law, the report of a rule components, or guitar strings, the em- report; which was referred to the Com- entitled ‘‘Airworthiness Directives; Empresa ployees of W.L. Gore & Associates mittee on Commerce, Science, and Barsileira de Aeronautical S.A . Model EMB- Transportation. 135 Airplanes; and Model EMB-145, -145ER, never settle for second best. The lead- -145MR, -145LR, -145XR, -145MP, and -145EP ership of Dr. Gore has made this pos- To the Congress of the United States: Airplanes’’ ((RIN2120-AA64)(2002-NM-89)) re- sible, and all of Delaware is proud that Consistent with 42 U.S.C. 1863(j)(1), I ceived on February 8, 2006; to the Committee he continues to make sure that the transmit herewith a report prepared on Commerce, Science, and Transportation.

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00039 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1174 CONGRESSIONAL RECORD — SENATE February 14, 2006 EC–5721. A communication from the Pro- EC–5729. A communication from the Pro- tion, Department of Transportation, trans- gram Analyst, Federal Aviation Administra- gram Analyst, Federal Aviation Administra- mitting, pursuant to law, the report of a rule tion, Department of Transportation, trans- tion, Department of Transportation, trans- entitled ‘‘Airworthiness Directives—BAE mitting, pursuant to law, the report of a rule mitting, pursuant to law, the report of a rule Systems Limited Model 4101 Airplanes’’ entitled ‘‘Airworthiness Directives; Airbus entitled ‘‘Airworthiness Directives—Pacific ((RIN2120-AA64)(2005-NM-129)) received on Model A300 B4-600, B4-600R, and F4-600R Se- Aerospace Corp Ltd Model 750XL Airplanes’’ February 8, 2006; to the Committee on Com- ries Airplanes, and Model A300 C4-605R Vari- ((RIN2120-AA64)(2005-CE-54)) received on Feb- merce, Science, and Transportation. ant F Airplanes; and Model A310-200 and -300 ruary 8, 2006; to the Committee on Com- EC–5739. A communication from the Pro- Series Airplanes’’ ((RIN2120-AA64)(2004-NM- merce, Science, and Transportation. gram Analyst, Federal Aviation Administra- 234)) received on February 8, 2006; to the EC–5730. A communication from the Pro- tion, Department of Transportation, trans- Committee on Commerce, Science, and gram Analyst, Federal Aviation Administra- mitting, pursuant to law, the report of a rule Transportation. tion, Department of Transportation, trans- entitled ‘‘Airworthiness Directives— EC–5722. A communication from the Pro- mitting, pursuant to law, the report of a rule Sabreliner Model NA 365, 265-20, 265-30, 265-40, gram Analyst, Federal Aviation Administra- entitled ‘‘Airworthiness Directives—Airbus 265-50, 265-60, 265-65, 265-70, and 265-80 Series tion, Department of Transportation, trans- Model A300 B2 Series Airplanes; A300 B4-103 Airplanes’’ ((RIN2120-AA64)(2005-NM-133)) re- mitting, pursuant to law, the report of a rule and B4 203 Airplanes; and A310-203 Airplanes’’ ceived on February 8, 2006; to the Committee entitled ‘‘Airworthiness Directives; ((RIN2120-AA64)(2005-NM-04)) received on on Commerce, Science, and Transportation. BURKHARDT GROB LUFT-UND February 8, 2006; to the Committee on Com- EC–5740. A communication from the Pro- RAUMFAHRT GmbH and CO KG Models G103 merce, Science, and Transportation. gram Analyst, Federal Aviation Administra- TWIN ASTIR, G103 TWIN II, G103A TWIN II EC–5731. A communication from the Pro- tion, Department of Transportation, trans- ACRO, G103C TWIN III ACRO, and G103C gram Analyst, Federal Aviation Administra- mitting, pursuant to law, the report of a rule Twin III SL Sailplanes’’ ((RIN2120- tion, Department of Transportation, trans- entitled ‘‘Airworthiness Directives— AA64)(2005-CE-19)) received on February 8, mitting, pursuant to law, the report of a rule Empressa Brasileira de Aeronautica Model 2006; to the Committee on Commerce, entitled ‘‘Airworthiness Directives— ERJ 170 Airplanes’’ ((RIN2120-AA64)(2005-NM- Science, and Transportation. Dassault Model Falcon 2000 Airplanes’’ 136)) received on February 8, 2006; to the EC–5723. A communication from the Pro- ((RIN2120-AA64)(2005-NM-55)) received on Committee on Commerce, Science, and gram Analyst, Federal Aviation Administra- February 8, 2006; to the Committee on Com- Transportation. tion, Department of Transportation, trans- merce, Science, and Transportation. EC–5741. A communication from the Pro- mitting, pursuant to law, the report of a rule EC–5732. A communication from the Pro- gram Analyst, Federal Aviation Administra- entitled ‘‘Airworthiness Directives; Amer- gram Analyst, Federal Aviation Administra- tion, Department of Transportation, trans- ican Champion Aircraft Corporation Models tion, Department of Transportation, trans- mitting, pursuant to law, the report of a rule 7AC, 7ACA, S7AC, 7BCM, 7CCM, S7CCM, 7DC, mitting, pursuant to law, the report of a rule entitled ‘‘Airworthiness Directives—Airbus S7DC, 7EC, S7EC, 7ECA, 7FC, 7GC, 7GCA, entitled ‘‘Airworthiness Directives—Engine Model A300 B2 and A300 B4 Series Airplanes; 7GCAA, 7GCB, 7GCBA, 7GCBC, 7HC, 7JC, Components Incorporated Reciprocating Cyl- A300 B4–600, B4–600R, and F4–600R Series Air- 7KC, 7KCAB, 8KCAB, and 8GCBC Airplanes’’ inder Assemblies’’ ((RIN2120-AA64)(2005-NE- planes, and C4–605R Variant F Airplanes; and 20)) received on February 8, 2006; to the Com- ((RIN2120-AA64)(2005-CE-50)) received on Feb- Airbus Model A310–200 and A310–300 Series mittee on Commerce, Science, and Transpor- ruary 8, 2006; to the Committee on Com- Airplanes’’ ((RIN2120–AA64)(2005–NM–033)) re- tation. ceived on February 8, 2006; to the Committee merce, Science, and Transportation. EC–5733. A communication from the Pro- EC–5724. A communication from the Pro- on Commerce, Science, and Transportation. gram Analyst, Federal Aviation Administra- gram Analyst, Federal Aviation Administra- EC–5742. A communication from the Pro- tion, Department of Transportation, trans- tion, Department of Transportation, trans- gram Analyst, Federal Aviation Administra- mitting, pursuant to law, the report of a rule mitting, pursuant to law, the report of a rule tion, Department of Transportation, trans- entitled ‘‘Airworthiness Directives—DG entitled ‘‘Airworthiness Directives; Boeing mitting, pursuant to law, the report of a rule Flugzeugbau GmbH Models DG 800B, and DG Model 727 Airplanes’’ ((RIN2120-AA64)(2005- entitled ‘‘Airworthiness Directives—Boeing 500B Sailplanes’’ ((RIN2120-AA64)(2005-CE-45)) NM-122)) received on February 8, 2006; to the Model 737–600, 700, 700C, and 800 Series Air- received on February 8, 2006; to the Com- planes’’ ((RIN2120–AA64)(2005–NM–88)) re- Committee on Commerce, Science, and mittee on Commerce, Science, and Transpor- ceived on February 8, 2006; to the Committee Transportation. tation. EC–5725. A communication from the Pro- EC–5734. A communication from the Pro- on Commerce, Science, and Transportation. gram Analyst, Federal Aviation Administra- gram Analyst, Federal Aviation Administra- EC–5743. A communication from the Pro- tion, Department of Transportation, trans- tion, Department of Transportation, trans- gram Analyst, Federal Aviation Administra- mitting, pursuant to law, the report of a rule mitting, pursuant to law, the report of a rule tion, Department of Transportation, trans- entitled ‘‘Airworthiness Directives; Ham- entitled ‘‘Airworthiness Directives— mitting, pursuant to law, the report of a rule ilton Sundstrand Power Systems Auxiliary Burkhardt Grob Luft-und Raumfahrt Gmbh entitled ‘‘Airworthiness Directives— Power Units Models T-62T-46C2, T-62T-46C2A, and Co. Kg Model Twin Astir Sailplanes’’ Empressa Brasilira de Aeronautica SA Model T-62T-46C3, T-62T-46C7, and T-62T-46C7A’’ ((RIN2120-AA64)(2005-CE-43)) received on Feb- DMB 135BJ, 135ER, 135KE, 135KL, and 135LR ((RIN2120-AA64)(2005-NE-19)) received on Feb- ruary 8, 2006; to the Committee on Com- Airplanes; and Model EMB 145, 145ER, ruary 8, 2006; to the Committee on Com- merce, Science, and Transportation. 145MR, 145LR, 145XR, 145MP, and 145EP Air- merce, Science, and Transportation. EC–5735. A communication from the Pro- planes’’ ((RIN2120–AA64)(2005–NM–149)) re- EC–5726. A communication from the Pro- gram Analyst, Federal Aviation Administra- ceived on February 8, 2006; to the Committee gram Analyst, Federal Aviation Administra- tion, Department of Transportation, trans- on Commerce, Science, and Transportation. tion, Department of Transportation, trans- mitting, pursuant to law, the report of a rule EC–5744. A communication from the Pro- mitting, pursuant to law, the report of a rule entitled ‘‘Airworthiness Directives—Boeing gram Analyst, Federal Aviation Administra- entitled ‘‘Airworthiness Directives—General Model 777-200 and 300 Series Airplanes’’ tion, Department of Transportation, trans- Electric Company CF6-80E1A1, 80E1A2, ((RIN2120-AA64)(2005-NM-223)) received on mitting, pursuant to law, the report of a rule 80E1A4, and 80E1A4/B Turbofan Engines’’ February 8, 2006; to the Committee on Com- entitled ‘‘Airworthiness Directives—Pratt ((RIN2120-AA64)(2005-NE-24)) received on Feb- merce, Science, and Transportation. and Whitney PW400 Series Turbofan En- ruary 8, 2006; to the Committee on Com- EC–5736. A communication from the Pro- gines’’ ((RIN2120–AA64)(2005–ANE–66)) re- merce, Science, and Transportation. gram Analyst, Federal Aviation Administra- ceived on February 8, 2006; to the Committee EC–5727. A communication from the Pro- tion, Department of Transportation, trans- on Commerce, Science, and Transportation. gram Analyst, Federal Aviation Administra- mitting, pursuant to law, the report of a rule EC–5745. A communication from the Pro- tion, Department of Transportation, trans- entitled ‘‘Airworthiness Directives—Boeing gram Analyst, Federal Aviation Administra- mitting, pursuant to law, the report of a rule Model 767-200, 300, and 300F Series Airplanes’’ tion, Department of Transportation, trans- entitled ‘‘Airworthiness Directives—Cessna ((RIN2120-AA64)(2005-NM-080)) received on mitting, pursuant to law, the report of a rule Aircraft Company Models 208 and 208B Air- February 8, 2006; to the Committee on Com- entitled ‘‘Airworthiness Directives—Boeing planes’’ ((RIN2120-AA64)(2005-CE-28)) received merce, Science, and Transportation. Model 767–200 and 300 Series Airplanes’’ on February 8, 2006; to the Committee on EC–5737. A communication from the Pro- ((RIN2120–AA64)(2005–NM–277)) received on Commerce, Science, and Transportation. gram Analyst, Federal Aviation Administra- February 8, 2006; to the Committee on Com- EC–5728. A communication from the Pro- tion, Department of Transportation, trans- merce, Science, and Transportation. gram Analyst, Federal Aviation Administra- mitting, pursuant to law, the report of a rule EC–5746. A communication from the Pro- tion, Department of Transportation, trans- entitled ‘‘Airworthiness Directives— gram Analyst, Federal Aviation Administra- mitting, pursuant to law, the report of a rule Dassault Model Falcon 2000 Airplanes tion, Department of Transportation, trans- entitled ‘‘Airworthiness Directives—Frakes Equipped with CFE Company CFE738-1-1B mitting, pursuant to law, the report of a rule Aviation Model G 73 Series Airplanes and Turbofan Engines’’ ((RIN2120-AA64)(2005-NM- entitled ‘‘Airworthiness Directives—Airbus Model G 73 Airplanes That Have Been Con- 061)) received on February 8, 2006; to the Model A300 B4 Series Airplanes, Model A310– verted to Have Turbine Engines’’ ((RIN2120- Committee on Commerce, Science, and 200 Series Airplanes, Model 310–300 Series AA64)(2005-NW-256)) received on February 8, Transportation. Airplanes, and Model A300 B4–600, B4–600R, 2006; to the Committee on Commerce, EC–5738. A communication from the Pro- and F4–600R Series Airplanes, and Model C4– Science, and Transportation. gram Analyst, Federal Aviation Administra- 605R Variant F Airplanes’’ ((RIN2120–

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00040 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1175 AA64)(2005–NM–131)) received on February 8, planes’’ ((RIN2120–AA64)(2006–0020)) received S. 2280. A bill to stop transactions which 2006; to the Committee on Commerce, on February 8, 2006; to the Committee on operate to promote fraud, risk, and under- Science, and Transportation. Commerce, Science, and Transportation. development, and for other purposes; to the EC–5747. A communication from the Pro- EC–5756. A communication from the Pro- Committee on Banking, Housing, and Urban gram Analyst, Federal Aviation Administra- gram Analyst, Federal Aviation Administra- Affairs. tion, Department of Transportation, trans- tion, Department of Transportation, trans- By Mr. SANTORUM: mitting, pursuant to law, the report of a rule mitting, pursuant to law, the report of a rule S. 2281. A bill to amend the Internal Rev- entitled ‘‘Airworthiness Directives; Boeing entitled ‘‘Airworthiness Directives; enue Code of 1986 to allow Americans to age Model 737 Airplanes’’ ((RIN2120–AA64)(2005– SOCATA—Groupe AEROSPATIALE Model with respect and dignity by providing tax in- NM–070)) received on February 8, 2006; to the TBM 700 Airplanes’’ ((RIN2120–AA64)(2006– centives to assist them in preparing for the Committee on Commerce, Science, and 0021)) received on February 8, 2006; to the financial impact of their long-term care Transportation. Committee on Commerce, Science, and needs; to the Committee on Finance. EC–5748. A communication from the Pro- Transportation . By Mr. SANTORUM: gram Analyst, Federal Aviation Administra- EC–5757. A communication from the Pro- S. 2282. A bill to amend title XVIII of the tion, Department of Transportation, trans- gram Analyst, Federal Aviation Administra- Social Security Act to provide for access to mitting, pursuant to law, the report of a rule tion, Department of Transportation, trans- telehealth services in the home; to the Com- entitled ‘‘Airworthiness Directives; Airbus mitting, pursuant to law, the report of a rule mittee on Finance. Model A330–200, A330–300, A340–200, and A340– entitled ‘‘Airworthiness Directives; Airbus By Mr. FRIST: 300 Series Airplanes’’ ((RIN2120–AA64)(2005– Model A320–111 Airplanes’’ ((RIN2120– S. 2283. A bill to establish a congressional NM–032)) received on February 8, 2006; to the AA64)(2006–0022)) received on February 8, commemorative medal for organ donors and Committee on Commerce, Science, and 2006; to the Committee on Commerce, their families; to the Committee on Bank- Transportation. Science, and Transportation. ing, Housing, and Urban Affairs. EC–5749. A communication from the Pro- EC–5758. A communication from the Pro- By Ms. MIKULSKI (for herself, Mr. gram Analyst, Federal Aviation Administra- gram Analyst, Federal Aviation Administra- WARNER, Mr. DAYTON, Mr. KERRY, tion, Department of Transportation, trans- tion, Department of Transportation, trans- Mr. JEFFORDS, Mr. SARBANES, Ms. mitting, pursuant to law, the report of a rule mitting, pursuant to law, the report of a rule SNOWE, Mr. ALLEN, Mr. LEVIN, Mr. entitled ‘‘Airworthiness Directives; Boeing entitled ‘‘Airworthiness Directives; Boeing GREGG, Ms. COLLINS, Mr. JOHNSON, Model 747–400, 747–400D, and 747–400F Series Vertol Model 107–II Helicopters’’ ((RIN2120– Mr. SUNUNU, and Mr. DORGAN): Airplanes’’ ((RIN2120–AA64)(2005–NM–082)) re- AA64)(2006–0023)) received on February 8, S. 2284. A bill to extend the termination ceived on February 8, 2006; to the Committee 2006; to the Committee on Commerce, date for the exemption of returning workers on Commerce, Science, and Transportation. Science, and Transportation. from the numerical limitations for tem- EC–5750. A communication from the Pro- EC–5759. A communication from the Pro- porary workers; to the Committee on the Ju- gram Analyst, Federal Aviation Administra- gram Analyst, Federal Aviation Administra- diciary. tion, Department of Transportation, trans- tion, Department of Transportation, trans- By Mr. LAUTENBERG: mitting, pursuant to law, the report of a rule mitting, pursuant to law, the report of a rule S. 2285. A bill to improve the protection of entitled ‘‘Airworthiness Directives; Airbus entitled ‘‘Airworthiness Directives; Airbus witnesses, victims, and informants; to the Model A330–300, A340–200, and A340–300 Series Model A318–100, A319–100, A320–200, A321–100, Committee on Homeland Security and Gov- Airplanes’’ ((RIN2120–AA64)(2002–NM–20)) re- and A321–200 Series Airplanes’’ ((RIN2120– ernmental Affairs. ceived on February 8, 2006; to the Committee AA64)(2006–0024)) received on February 8, By Mr. OBAMA (for himself and Mr. on Commerce, Science, and Transportation. 2006; to the Committee on Commerce, BAYH): EC–5751. A communication from the Pro- Science, and Transportation. S. 2286. A bill to amend part A of title IV gram Analyst, Federal Aviation Administra- EC–5760. A communication from the Pro- of the Social Security Act to eliminate the tion, Department of Transportation, trans- gram Analyst, Federal Aviation Administra- separate work participation rate for 2-parent mitting, pursuant to law, the report of a rule tion, Department of Transportation, trans- families under the temporary assistance for entitled ‘‘Airworthiness Directives; Empresa mitting, pursuant to law, the report of a rule needy families programs; to the Committee Brasileira de Aeronautica S.A. Model EMB– entitled ‘‘Airworthiness Directives; Empresa on Finance. 120, –120ER, 120FC, –120QC, and –120RT Air- Brasileira de Areonautica S.A. Model EMB– planes’’ ((RIN2120–AA64)(2005–NM–183)) re- f 135 Airplanes and Model EMB–145, –145ER, ceived on February 8, 2006; to the Committee –145MR, –145LR, –145XR, –145MP, and –145EP SUBMISSION OF CONCURRENT AND on Commerce, Science, and Transportation. Airplanes’’ ((RIN2120–AA64)(2006–0026)) re- EC–5752. A communication from the Pro- SENATE RESOLUTIONS ceived on February 8, 2006; to the Committee gram Analyst, Federal Aviation Administra- on Commerce, Science, and Transportation. The following concurrent resolutions tion, Department of Transportation, trans- EC–5761. A communication from the Pro- and Senate resolutions were read, and mitting, pursuant to law, the report of a rule gram Analyst, Federal Aviation Administra- referred (or acted upon), as indicated: entitled ‘‘Airworthiness Directives; Boeing tion, Department of Transportation, trans- Model 767–300 Series Airplanes’’ ((RIN2120– By Mr. THOMAS (for himself, Mr. mitting, pursuant to law, the report of a rule AA64)(2004–NM–266)) received on February 8, BINGAMAN, Mr. DORGAN, Mr. BURNS, entitled ‘‘Airworthiness Directives; Airbus 2006; to the Committee on Commerce, Mr. ALLARD, Mr. JOHNSON, Mr. REID, Model A319–100 Series Airplanes; Model A320– Science, and Transportation. Mr. MARTINEZ, Mr. INHOFE, Mr. EC–5753. A communication from the Pro- 111 Airplanes; Model A320–200 Series Air- SALAZAR, Mr. BAUCUS, Mr. CRAIG, Mr. gram Analyst, Federal Aviation Administra- planes, and Model A321–100 and –200 Series ENZI, Mr. STEVENS, Mr. ALLEN, and tion, Department of Transportation, trans- Airplanes’’ ((RIN2120–AA64)(2006–0027)) re- Mr. ENSIGN): mitting, pursuant to law, the report of a rule ceived on February 8, 2006; to the Committee S. Res. 371. A resolution designating July entitled ‘‘Airworthiness Directives; Empresa on Commerce, Science, and Transportation. 22, 2006, as ‘‘National Day of the American Brasileira de Aeronautica S.A. Model EMB– f Cowboy″; to the Committee on the Judiciary. 135 Airplanes and Model EMB–145, –145ER, By Mr. KERRY: –145MR, –145LR , –145XR, –145MP, and –145EP INTRODUCTION OF BILLS AND S. Res. 372. A resolution expressing the Airplanes ‘‘ ((RIN2120–AA64)(2004–NM–218)) JOINT RESOLUTIONS sense of the Senate that oil and gas compa- received on February 8, 2006; to the Com- The following bills and joint resolu- nies should not be provided outer Conti- nental Shelf royalty relief when energy mittee on Commerce, Science, and Transpor- tions were introduced, read the first tation. prices are at historic highs; to the Com- EC–5754. A communication from the Pro- and second times by unanimous con- mittee on Energy and Natural Resources. sent, and referred as indicated: gram Analyst, Federal Aviation Administra- f tion, Department of Transportation, trans- By Ms. STABENOW (for herself and mitting, pursuant to law, the report of a rule Ms. MURKOWSKI): ADDITIONAL COSPONSORS S. 2278. A bill to amend the Public Health entitled ‘‘Airworthiness Directives; Airbus S. 424 Model A330–243, –341, –342, and –343 Airplanes Service Act to improve the prevention, diag- Equipped with Rolls-Royce RB211 TRENT 700 nosis, and treatment of heart disease, stroke, At the request of Mr. BOND, the name Engines’’ ((RIN2120–AA64)(2004–NM–146)) re- and other cardiovascular diseases in women; of the Senator from Rhode Island (Mr. ceived on February 8, 2006; to the Committee to the Committee on Health, Education, REED) was added as a cosponsor of S. on Commerce, Science, and Transportation. Labor, and Pensions. 424, a bill to amend the Public Health EC–5755. A communication from the Pro- By Mr. FEINGOLD (for himself and Mr. Service Act to provide for arthritis re- gram Analyst, Federal Aviation Administra- KYL): search and public health, and for other tion, Department of Transportation, trans- S. 2279. A bill to make amendments to the purposes. mitting, pursuant to law, the report of a rule Iran and Syria Nonproliferation Act; to the entitled ‘‘Airworthiness Directives; Boeing Committee on Foreign Relations. S. 1141 Model 747–100, 747–100B, 747–100B SUD, 747– By Mr. OBAMA (for himself, Mr. DUR- At the request of Mr. COCHRAN, the 200B, 747–300, 747SP, and 747SR Series Air- BIN, and Mr. MENENDEZ): name of the Senator from Idaho (Mr.

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00041 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1176 CONGRESSIONAL RECORD — SENATE February 14, 2006 CRAIG) was added as a cosponsor of S. changes in the Federal Aviation Ad- Michigan, 43 percent of all deaths in 1141, a bill to authorize the Secretary ministration personnel management women are due to cardiovascular dis- of Homeland Security to regulate am- system, and for other purposes. ease. monium nitrate. S. 2235 Fact: 1 in 3 adult women has some S. 1881 At the request of Mr. SCHUMER, the form of cardiovascular disease. At the request of Mrs. FEINSTEIN, the name of the Senator from Ohio (Mr. Fact: Minority women, particularly name of the Senator from Maryland VOINOVICH) was added as a cosponsor of African American, Hispanic and Native (Ms. MIKULSKI) was added as a cospon- S. 2235, a bill to posthumously award a American women are at even greater sor of S. 1881, a bill to require the Sec- congressional gold medal to Constance risk from heart disease and stroke. retary of the Treasury to mint coins in Baker Motley. The first step in addressing any prob- commemoration of the Old Mint at San S. RES. 320 lem is acknowledging it—that’s why ef- Francisco otherwise known as the At the request of Mr. SANTORUM, his forts to educate women about their ‘‘Granite Lady’’, and for other pur- name was added as a cosponsor of S. risk of heart disease are so important. poses. Res. 320, a resolution calling the Presi- The good news is that we have made S. 1991 dent to ensure that the foreign policy progress in educating women: nearly At the request of Mr. BURR, the name of the United States reflects appro- half of women can now identify heart of the Senator from South Dakota (Mr. priate understanding and sensitivity disease as the leading cause of death in THUNE) was added as a cosponsor of S. concerning issues related to human women. The bad news is that while 1991, a bill to amend title 38, United rights, ethnic cleansing, and genocide women are now more aware of their States Code, to establish a financial as- documented in the United States risk of heart disease many of their doc- sistance program to facilitate the pro- record relating to the Armenian Geno- tors are not. vision of supportive services for very cide. Astoundingly, 4 out of 5 doctors do low-income veteran families in perma- S. RES. 359 not know that more women die of heart disease each year than men. nent housing, and for other purposes. At the request of Ms. LANDRIEU, the Those numbers are alarming because S. 2178 names of the Senator from Oklahoma doctors decide how aggressively to At the request of Mr. SPECTER, the (Mr. INHOFE) and the Senator from treat their patients based on the name of the Senator from Arizona (Mr. Kentucky (Mr. BUNNING) were added as amount of risk they perceive for that KYL) was added as a cosponsor of S. cosponsors of S. Res. 359, a resolution patient. 2178, a bill to make the stealing and concerning the Government of Roma- selling of telephone records a criminal nia’s ban on intercountry adoptions I suspect we all know women who offense. and the welfare of orphaned or aban- have been to their doctors or to emer- gency rooms exhibiting symptoms of a S. 2197 doned children in Romania. heart attack, only to be told they were At the request of Mr. DOMENICI, the f suffering from ‘‘stress’’ or indigestion. names of the Senator from Delaware STATEMENTS ON INTRODUCED As a result, women don’t get the (Mr. CARPER), the Senator from Ken- BILLS AND JOINT RESOLUTIONS same care that men do. Even though tucky (Mr. BUNNING), the Senator from women make up 53 percent of all North Carolina (Mr. BURR) and the By Ms. STABENOW (for herself and Ms. MURKOWSKI): deaths from cardiovascular disease, Senator from Iowa (Mr. GRASSLEY) they receive only 33 percent of coro- were added as cosponsors of S. 2197, a S. 2278. A bill to amend the Public Health Service Act to improve the pre- nary interventions such as bill to improve the global competitive- angioplasties and stints. ness of the United States in science vention, diagnosis, and treatment of Likewise, 61 percent of total stroke and energy technology, to strengthen heart disease, stroke, and other cardio- deaths are in women, but only 38 per- basic research programs at the Depart- vascular diseases in women; to the cent of the procedures to prevent ment of Energy, and to provide support Committee on Health, Education, stroke are performed on women. for mathematics and science education Labor, and Pensions. And when women do receive treat- at all levels through the resources Ms. STABENOW. Mr. President, I ment, it is often based on research that available through the Department of rise today to introduce the ‘‘HEART was solely done on men. For too many Energy, including at the National Lab- for Women Act of 2006.’’ I want to years, everyone has just assumed that oratories. thank Senator LISA MURKOWSKI for joining me on this important legisla- treatments that are effective for men S. 2198 tion. I am also pleased that Congress- work equally well in women. At the request of Mr. DOMENICI, the women LOIS CAPPS and BARBARA CUBIN But now we know that gender really names of the Senator from Delaware are introducing companion legislation does make a difference. Diagnostic (Mr. CARPER) and the Senator from in the House of Representatives. tests, prescription drugs, and medical Georgia (Mr. ISAKSON) were added as We face an alarming situation in this devices may work differently in women cosponsors of S. 2198, a bill to ensure country. While over the last 25 years than in men. When there is a dif- the United States successfully com- we have made good progress in reduc- ference, patients and their healthcare petes in the 21st century global econ- ing the death rate for men with heart providers need and deserve to know omy. disease, stroke, and other cardio- this. And right now, all too often that S. 2199 vascular diseases, the same does not kind of information simply isn’t avail- At the request of Mr. DOMENICI, the hold true for women. Not only have we able to clinicians and researchers. name of the Senator from Delaware not lowered the cardiovascular disease That is why Senator MURKOWSKI and (Mr. CARPER) was added as a cosponsor mortality rate for women—the death I are introducing the ‘‘HEART for of S. 2199, a bill to amend the Internal rate has actually gone up for women Women Act’’ to help to turn this prob- Revenue Code of 1986 to provide tax in- during that same period. lem around. This legislation takes a 3- centives to promote research and de- A lot of people think of heart disease pronged approach to reducing the heart velopment, innovation, and continuing as a ‘‘man’s disease.’’ But while heart disease death rate for women. education. disease is certainly a significant prob- First, the bill would authorize grants S. 2201 lem for men, it is an equally important to educate doctors on how to prevent, At the request of Mr. OBAMA, the problem for women. diagnose and treat heart disease and names of the Senator from Colorado Fact: Heart disease and stroke actu- strokes in women. Doctors and other (Mr. SALAZAR) and the Senator from ally kill more women each year than healthcare providers first and foremost Oregon (Mr. WYDEN) were added as co- men. need to know that heart disease is a sponsors of S. 2201, a bill to amend title Fact: Heart disease, stroke, and major problem in women, so that they 49, United States Code, to modify the other cardiovascular diseases are the treat it accordingly. mediation and implementation require- number 1 killer in the United States The bill would also require that ments of section 40122 regarding and in my home State of Michigan. In health information that is already

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00042 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1177 being reported to the federal govern- Alaska have higher death rates from more than any other disease—an esti- ment be gender-specific, and would re- stroke than do women nationally. Mor- mated $403 billion in 2006, including quire annual recommendations to Con- tality among Native Alaskan women is more than $250 billion in direct medical gress for improving the treatment of dramatically on the rise, whereas, it is costs. We, as a nation, can control heart disease in women. Doctors need declining among Caucasian women in those costs—prevention through early to know what medical treatments are the Lower 48. detection is the most cost-effective safe and effective for their women pa- Despite being the number one killer, way to combat this disease. tients. many women and their health care pro- Today, as we celebrate Valentine’s Finally, the bill would also expand a viders do not know that the biggest Day and see images of hearts just current program run by the Centers for health care threat to women is heart about everywhere, let us not forget Disease Control and Prevention, CDC disease. In fact, a recent survey found that the heart is much more than a called WISEWOMAN, Well-Integrated that 45 percent of women still don’t symbol—it is a vital organ that can’t Screening and Evaluation for Women know that heart disease is the number be taken for granted. Coronary disease Across the Nation. one killer of women. can be effectively treated and some- The WISEWOMAN program provides Perhaps even more troubling is the times even prevented—it does not have free heart disease and stroke screening lack of awareness among health care to be the number one cause of death in to low-income, uninsured women. providers. According to American women. And, that is why I encourage While Michigan is fortunate to be one Heart Association figures, less than my colleagues to support the HEART of the 14 States that has a one in five physicians recognize that for Women Act. WISEWOMAN program, every State more women suffer from heart disease should have this important program. than men. Among primary care physi- By Mr. OBAMA (for himself, Mr. These are simple, cost-effective, but cians, only 8 percent of primary care DURBIN, and Mr. MENENDEZ): meaningful steps that Congress can physicians—and even more astound- S. 2280. A bill to stop transactions take that will help get the death rate ing—only 17 percent of cardiologists which operate to promote fraud, risk, for women from heart disease and recognize that more women die of and under-development, and for other stroke going in the right direction— heart disease than men. Additionally, purposes; to the Committee on Bank- down. studies show that women are less like- ing, Housing, and Urban Affairs. Today is Valentine’s Day, a day for ly to receive aggressive treatment be- Mr. OBAMA. Mr. President, today, I showing our loved ones how much we cause heart disease often manifests am introducing new legislation to ad- love and appreciation them. itself differently in women than men. dress a growing problem in our coun- As women, we tend to be really great This is why the HEART Act is so im- try, one that is robbing thousands of at taking care of everyone around us— portant. Our bill takes a three-pronged Americans of their dream of home- our children, our husbands, our aging approach to reducing the heart disease ownership, and costing the mortgage parents. Unfortunately, we’re not near- death rate for women, through; 1. edu- industry hundreds of millions of dollars ly so good about taking care of our- cation; 2. research; and 3. screening. each year. selves. First, the bill would authorize the I am talking about the problem of So I hope that this Valentine’s Day Department of Health and Human mortgage fraud—the practice of de- will also be a day to raise awareness Services to educate healthcare profes- frauding individuals of their rightful about the risks of heart disease for sionals and older women about unique property, and using tricks and schemes women and to encourage our loved aspects of care in the prevention, diag- to steal from banks and other financial ones—our mothers, sisters, and nosis and treatment of women with institutions. Mortgage fraud comes in friends—to take good care of them- heart disease and stroke. a variety of forms, from inflated ap- selves. I urge my colleagues to join me Second, the bill would require disclo- praisals to the use of straw buyers, but in passing this critical legislation. sure of gender-specific health informa- the net result is the same: financial in- Ms. MURKOWSKI. Mr. President, tion that is already being reported to stitutions lose out to the tune of ap- February is American Heart Month, the Federal Government. Many agen- proximately $1.01 billion each year, and and heart disease remains the Nation’s cies already collect information based consumers lose their savings, their leading cause of death. on gender, but do not disseminate or good credit, and their homes. Many women believe that heart dis- analyze the gender differences. This Although the data in this area is lim- ease is a man’s disease and, unfortu- bill would release that information so ited, mortgage fraud is clearly on the nately, do not view it as a serious that it could be studied, and important rise. According to the FBI, mortgage health threat. Yet, in every year since health trends in women could be de- fraud cases were up 25 percent last 1984, cardiovascular disease claimed tected. year, and 400 percent since 2002. Fur- the lives of more women than men. In Lastly, the bill would authorize the ther, in 2004, the mortgage industry fact, cardiovascular disease death rates expansion of the Centers for Disease noted 12,000 cases of suspicious activ- have declined in men since 1979, while Control and Prevention’s ity, three times the amount reported in the death rate for women during that WISEWOMAN program, the Well-Inte- 2001. This is due largely to the housing same period has actually increased. grated Screening and Evaluation for boom which is driving up housing The numbers are disturbing: cardio- Women Across the Nation program. prices across the country. Nearly $2.5 vascular diseases claim the lives of The WISEWOMAN program provides trillion in mortgage loans were made more than 480,000 women per year; free heart disease and stroke screening during 2005, and the number is only ex- that’s nearly a death per minute to low-income uninsured women, but pected to rise this year. among females and nearly 12 times as the program is currently limited to But mortgage fraud is about more many lives as claimed by breast can- just 14 States. than just dollars and statistics; it’s cer. One in four females has some form My State of Alaska is fortunate to about real people, real homes, and real of cardiovascular disease. have two WISEWOMAN program sites. lives. My hometown Chicago Tribune That is why I am pleased to join with These programs screen for high blood has featured a series of articles about my colleague from Michigan, Senator pressure, cholesterol and glucose in Na- mortgage fraud in Illinois, which, STABENOW, to introduce important leg- tive Alaskan women and provide in- along with Georgia, South Carolina, islation, the HEART for Women Act, or valuable counseling on diet and exer- Florida, Missouri, Michigan, Cali- Heart disease Education, Analysis and cise. One program in Alaska alone has fornia, Nevada, Colorado and Utah, is Research, and Treatment for Women successfully screened 1,437 Alaskan Na- among the FBI’s top-ten mortgage Act. This important bill improves the tive women and has provided them fraud ‘hot spots.’ prevention, diagnosis and treatment of with a culturally appropriate interven- The stories highlight, for example, heart disease and stroke in women. tion program that has produced life- the plight of the good folks on May In Alaska, cardiovascular diseases saving results. Street in Chicago, who saw a block’s are the leading cause of death, totaling Heart disease, stroke and other car- worth of homes go boarded up in the nearly 800 deaths each year. Women in diovascular diseases cost Americans span of a just few years, as swindlers

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00043 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1178 CONGRESSIONAL RECORD — SENATE February 14, 2006 racked up hundreds of thousands of mittee on Banking, Housing, and is to thousands of people desperately dollars in bad loans, and left shells of Urban Affairs. waiting for that precious gift. houses behind. The Tribune stories Mr. FRIST. Mr. President, each day, Congressman PETE STARK of Cali- highlighted the plight of 75-year-old 74 people receive an organ transplant. fornia has introduced companion legis- Ruth Williams, who had to spend her And each day, another 18 patients die lation in the House. He shares my be- personal funds to clear the title to her waiting. lief that organ donation is one of the home after fraudsters secured $400,000 While it doesn’t get a lot of public at- most precious gifts an individual can in loans on three buildings they didn’t tention, for every family who struggles give to a fellow human being. own. And two doors down from Ms. Wil- with the pain and uncertainty of wait- I urge my colleagues to join me in liams, Corey Latimer can’t sell his ing for that life saving gift, the organ this simple and sincere gesture of sup- building or borrow against it, because a donation shortage is an urgent crisis. port. By honoring our fellow citizens in lending company hasn’t released a Right now, over 97,000 people are on this way, we, too, can help give the gift phony mortgage that Corey didn’t au- the waiting list. Fewer than half of of life. thorize. them will get the transplant they need. I ask unanimous consent that the Law enforcement, consumer groups Almost 2,000 of the patients on the list text of the bill be printed in the and many in the mortgage industry are are from my home state of Tennessee. RECORD. doing what they can to combat fraud, As a heart and lung transplant sur- There being no objection, the text of and I applaud their good work. Now, geon, I have direct and intimate expe- the bill was ordered to be printed in Congress needs to come to the table rience with this issue. I’ve devoted two the RECORD, as follows: and do its part. decades of my life to giving others a S. 2283 I, along with Senator DURBIN and second chance through transplan- Be it enacted by the Senate and House of Rep- Senator MENENDEZ, am introducing the tation. resentatives of the United States of America in STOP FRAUD Act today to address the I have sat next to the hospital bed Congress assembled, critical problem of mortgage fraud. and looked into eyes of patients and SECTION 1. SHORT TITLE. STOP FRAUD (Stopping Transactions their families and seen the frustration, This Act may be cited as the ‘‘Gift of Life which Operate to Promote Fraud, Risk desperation and fear they feel as they Congressional Medal Act of 2006’’. and Under-Development) would provide wait and hope for the miraculous gift SEC. 2. CONGRESSIONAL MEDAL. the first Federal definition of mortgage that can reverse a fatal diagnosis. The Secretary of the Treasury shall design fraud and authorize stiff criminal pen- I’ve personally shared in the elation and strike a bronze medal with suitable em- when the donation came through. I blems, devices, and inscriptions, to be deter- alties against fraudulent actors. STOP mined by the Secretary of the Treasury, to FRAUD requires a wide range of mort- also know very well the tragedy when commemorate organ donors and their fami- gage professionals to report suspected a patient dies before they could receive lies. fraudulent activity, and gives these a transplant—a direct result of a large SEC. 3. ELIGIBILITY REQUIREMENTS. same professionals safe harbor from li- and growing shortage of organ donors. (a) IN GENERAL.—Any organ donor, or the ability when they report suspicious in- The medical community is trying to family or family member of any organ donor, cidents. It also authorizes several raise public awareness. I’m proud to shall be eligible for a medal described in sec- grant programs to help State and local say that four Tennessee hospitals are tion 2. law enforcement fight fraud, provide participating in the nationwide, (b) DOCUMENTATION.—The Secretary of ‘‘Organ Donation Breakthrough Col- Health and Human Services shall direct the the mortgage industry with updates on entity holding the Organ Procurement and fraud trends, and further support the laborative Gift of Life Initiative.’’ Transplantation Network (hereafter in this Departments of Treasury, Justice and Led by the Department of Health and Act referred to as ‘‘OPTN’’) to contract to— Housing and Urban Development’s Human Services, this is a multiphase (1) establish an application procedure re- fraud-fighting efforts. national collaboration designed to in- quiring the relevant organ procurement or- The STOP FRAUD Act will build crease access to transplantable organs ganization, as described in section 371(b)(1) upon the good work of the FBI, the and promote organ donation among the of the Public Health Service Act (42 U.S.C. Treasury Department, HUD, consumer public. 273(b)(1)), through which an individual or their family made an organ donation, to sub- groups, many in the mortgage indus- In Tennessee, we have two active organ procurement organizations, the mit to the OPTN contractor documentation try, and State and local law enforce- supporting the eligibility of that individual ment, giving them the tools they need Tennessee Donor Services and the Mid or their family to receive a medal described to stop mortgage fraud in its tracks. South Transplant Foundation. There in section 2; and The cost of this bill is well worth the are also 10 transplant centers through- (2) determine, through the documentation benefit to American taxpayers and out the state. provided, and, if necessary, independent in- companies, and it has been endorsed by As a transplant surgeon and a Ten- vestigation, whether the individual or family a range of law enforcement and con- nessean, I am proud of these path is eligible to receive a medal described in section 2. sumer groups. The Illinois Attorney breaking efforts. But, the sobering fact General’s office and the Chicago Police remains, we still have far too few do- SEC. 4. PRESENTATION. (a) DELIVERY TO THE SECRETARY OF HEALTH Department have told me how valuable nors to meet the urgent demand. I understand that it’s a difficult and AND HUMAN SERVICES.—The Secretary of the this bill would be to their enforcement Treasury shall deliver medals struck pursu- efforts, and ACORN, the Center For Re- emotional decision to, literally, give ant to this Act to the Secretary of Health sponsible Lending, the National Asso- part of oneself away. Many people, un- and Human Services. ciation of Consumer Advocates, the Na- derstandably, feel squeamish about (b) DELIVERY TO ELIGIBLE RECIPIENTS.—The tional Community Reinvestment Coali- choosing donation. But by giving the Secretary of Health and Human Services tion, National Consumer Law Center, gift of life, miracles can come from shall direct the OPTN contractor to arrange tragedy, and a whole family can be for the presentation to the relevant organ and U.S. PIRG said in a recent letter procurement organization all medals struck that this bill would ‘‘help protect con- saved. I bring all of this up because there is pursuant to this Act to individuals or fami- sumers from fraudulent and abusive lies that, in accordance with section 3, the practices in the mortgage industry.’’ something we can do here in the Sen- OPTN contractor has determined to be eligi- The STOP FRAUD Act is a tough, ate. ble to receive medals under this Act. cost-effective, and balanced way to ad- Today, I am proposing that we create (c) LIMITATION.— dress the serious problem of mortgage a congressional commemorative medal (1) IN GENERAL.—Except as provided in fraud in our country. I urge my col- to honor organ donors and their fami- paragraph (2), only 1 medal may be presented lies under the Gift of Life Congres- to a family under subsection (b). Such medal leagues to join me in this important ef- shall be presented to the donating family fort. sional Medal Act of 2006. At no cost to the Government, we member, or in the case of a deceased donor, the family member who signed the consent By Mr. FRIST: can recognize the extraordinary gen- form authorizing, or who otherwise author- S. 2283. A bill to establish a congres- erosity of a donor’s gift and send a ized, the donation of the organ involved. sional commemorative medal for organ message to the broader public about (2) EXCEPTION.—In the case of a family in donors and their families; to the Com- how vitally important organ donation which more than 1 member is an organ

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1179 donor, the OPTN contractor may present an S. 2286. A bill to amend part A of or interfere with State efforts to pro- additional medal to each such organ donor or title IV of the Social Security Act to mote employment and reduce case- their family. eliminate the separate work participa- loads. Instead, our bill reinforces State SEC. 5. DUPLICATE MEDALS. tion rate for 2–parent families under efforts to support two-parent families (a) IN GENERAL.—The Secretary of Health and Human Services or the OPTN contractor the temporary assistance for needy in the ways that they know best. may provide duplicates of the medal de- families programs; to the Committee I urge my colleagues to support this scribed in section 2 to any recipient of a on Finance. legislation and join us in promoting medal under section 4(b), under such regula- Mr. OBAMA. Mr. President, I rise stronger families. Thank you for your tions as the Secretary of Health and Human today to speak about the ‘‘Equality for attention to this important matter. Services may issue. Two-Parent Families Act of 2006’’ that (b) LIMITATION.—The price of a duplicate f I am introducing with Senator BAYH. medal shall be sufficient to cover the cost of SUBMITTED RESOLUTIONS such duplicates. When Congress reauthorized the Tem- SEC. 6. NATIONAL MEDALS. porary Assistance for Needy Families The medals struck pursuant to this Act are program as part of the Spending Rec- national medals for purposes of section 5111 onciliation bill two weeks ago, we SENATE RESOLUTION 371—DESIG- of title 31, United States Code. failed to eliminate a pernicious dis- NATING JULY 22, 2006 AS ‘‘NA- SEC. 7. GENERAL WAIVER OF PROCUREMENT incentive to marriage that was con- TIONAL DAY OF THE AMERICAN REGULATIONS. tained in that bill. The Equality for COWBOY’’ No provision of law governing procurement or public contracts shall be applicable to the Two-Parent Families Act will correct Mr. THOMAS (for himself, Mr. BINGA- procurement of goods or services necessary that unfortunate error. MAN, Mr. DORGAN, Mr. BURNS, Mr. AL- for carrying out the provisions of this Act. Republicans and Democrats often LARD, Mr. JOHNSON, Mr. REID, Mr. MAR- SEC. 8. SOLICITATION OF DONATIONS. have different ideas about how best to TINEZ, Mr. INHOFE, Mr. SALAZAR, Mr. (a) IN GENERAL.—The Secretary of the promote self sufficiency and economic BAUCUS, Mr. CRAIG, Mr. ENZI, Mr. STE- Treasury may enter into an agreement with mobility for low-income families. But VENS, Mr. ALLEN, and Mr. ENSIGN) sub- the OPTN contractor to collect funds to off- one thing on which we all can agree is mitted the following resolution; which set expenditures relating to the issuance of that children are better off when they was referred to the Committee on the medals authorized under this Act. (b) PAYMENT OF FUNDS.— grow up with two responsible parents. Judiciary: (1) IN GENERAL.—Except as provided in The evidence shows that, on average, S. RES. 371 paragraph (2), all funds received by the children in two-parent families do bet- Whereas pioneering men and women, rec- Organ Procurement and Transplantation ter in school and are more likely to ognized as cowboys, helped establish the Network under subsection (a) shall be lead successful, independent lives. That American West; promptly paid by the Organ Procurement is why recent TANF legislation, includ- Whereas that cowboy spirit continues to and Transplantation Network to the Sec- ing the bipartisan PRIDE Act in the infuse this country with its solid character, retary of the Treasury. Senate and H.R. 240 in the House, and sound family values, and good common (2) LIMITATION.—Not more than 5 percent sense; of any funds received under subsection (a) Administration proposals have recog- nized that the separate two-parent Whereas the cowboy embodies honesty, in- shall be used to pay administrative costs in- tegrity, courage, compassion, respect, a curred by the OPTN contractor as a result of work participation standard, which in- strong work ethic, and patriotism; an agreement established under this section. troduces an anti-marriage bias in Whereas the cowboy loves, lives off of, and (c) NUMISMATIC PUBLIC ENTERPRISE FUND.— TANF, should be eliminated. depends on the land and its creatures, and is Notwithstanding any other provision of Unfortunately, the recent TANF re- an excellent steward, protecting and enhanc- law— authorization failed to reflect this ing the environment; (1) all amounts received by the Secretary long-standing consensus. Instead, the Whereas the cowboy continues to play a of the Treasury under subsection (b)(1) shall significant role in the culture and economy be deposited in the Numismatic Public En- new law compels States to meet an un- equal work participation standard with of the United States; terprise Fund, as described in section 5134 of Whereas approximately 800,000 ranchers title 31, United States Code; and their own State-funded programs. are conducting business in all 50 States and (2) the Secretary of the Treasury shall Whereas States must ensure that 50 are contributing to the economic well being charge such fund with all expenditures relat- percent of their single parents satisfy of nearly every county in the Nation; ing to the issuance of medals authorized the work requirements, they will be pe- Whereas rodeo is the sixth most-watched under this Act. nalized if fewer than 90 percent of their sport in the United States; (d) START-UP COSTS.—A 1-time amount not Whereas membership in rodeo and other to exceed $55,000 shall be provided to the two-parent families meet what are organizations encompassing the livelihood of OPTN contractor to cover initial start-up even greater work requirements. a cowboy transcends race and sex and spans costs. The amount will be paid back in full As a result, many States, including every generation; within 3 years of the date of the enactment Illinois which until now has success- Whereas the cowboy is an American icon; of this Act from funds received under sub- fully served two-parent families in its Whereas to recognize the American cowboy section (a). state program, may now face an unfor- is to acknowledge the ongoing commitment (e) NO NET COST TO THE GOVERNMENT.—The tunate choice: stop serving two-parent Secretary of the Treasury shall take all ac- of the United States to an esteemed and en- tions necessary to ensure that the issuance families or face a penalty. I even heard during code of conduct; and of medals authorized under section 2 results one welfare official joke that States Whereas the ongoing contributions made in no net cost to the Government. may be better off paying couples to by cowboys to their communities should be recognized and encouraged: Now, therefore, SEC. 9. DEFINITIONS. split up in order to avoid possible pen- In this Act: alties. What kind of incentive is that? be it Resolved, That the Senate— (1) ORGAN.—The term ‘‘organ’’ means the Requiring States to treat two-parent (1) designates July 22, 2006, as ‘‘National human kidney, liver, heart, lung, pancreas, families differently undermines efforts and any other human organ (other than cor- Day of the American Cowboy’’; and on both the state and federal level to (2) encourages the people of the United neas and eyes) specified by regulation of the promote and strengthen two-parent Secretary of Health and Human Services or States to observe the day with appropriate the OPTN contractor. families. It is especially ironic that the ceremonies and activities. (2) ORGAN PROCUREMENT AND TRANSPLAN- policy is part of a bill that includes Mr. THOMAS. Mr. President, I rise TATION NETWORK.—The term ‘‘Organ Procure- funding for marriage promotion and fa- today to submit a resolution desig- ment and Transplantation Network’’ means therhood programs. nating July 22, 2006, as ‘‘National Day the Organ Procurement and Transplantation The remedy for this contradiction is of the American Cowboy.’’ Network established under section 372 of the clear; we must eliminate the separate The cowboy has influenced American Public Health Service Act (42 U.S.C. 274). two-parent work participation stand- culture in literature, music, art, fash- SEC. 10. SUNSET PROVISION. ard. Senator BAYH and I have intro- ion, theater, and sport. What’s more, This Act shall be effective during the 5- year period beginning on the date of the en- duced the ‘‘Equality for Two-Parent these folks contribute substantially to actment of this Act. Families Act of 2006’’ to eliminate this the economic well-being of our coun- standard and rectify the inequity in try. In 2005 alone, United States cash By Mr. OBAMA (for himself and current TANF policy. Our bill does not receipts from the sale of cattle and Mr. BAYH): change two-parent work requirements calves exceeded $48 billion, accounting

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1180 CONGRESSIONAL RECORD — SENATE February 14, 2006 for nearly 40 percent of all livestock tugs at my heart strings. It also serves Land and Water Conservation Fund: Now, sales and nearly half of all farm re- to illustrate how important this day is therefore, be it ceipts. Clearly, the cowboy is not mere- to the American people and those who Resolved, That it is the sense of the Senate ly a romantic figure, but an integral support American ideals. that— (1) the Minerals Management Service part of our Nation’s economy. I call on the Senate to once again should suspend all future royalty relief until As many Americans know, last year’s recognize our country’s cowboys and the Secretary can ensure that the citizens of celebration was a great success. The cowgirls and their significant contribu- the United States receive a fair return from first observance of the National Day of tions through designation of the second oil and gas resources from the outer Conti- the American Cowboy was commemo- annual National Day of the American nental Shelf; and rated across the country with various Cowboy. (2) Congress must take steps to ensure that the oil and gas industry does not receive a festivities and events. In Wyoming, the f day fell within Cheyenne Frontier windfall and is not unjustly enriched at the expense of the citizens of the United States. Days, one of the world’s largest out- SENATE RESOLUTION 372—EX- door rodeos and our State’s premier PRESSING THE SENSE OF THE f SENATE THAT OIL AND GAS cowboy competition. AMENDMENTS SUBMITTED AND COMPANIES SHOULD NOT BE Cheyenne Frontier Days can be PROPOSED traced as far back as 1896 when a group PROVIDED OUTER CONTINENTAL SHELF ROYALTY RELIEF WHEN SA 2767. Mr. DAYTON submitted an of cowboys from the Two Bar Ranch amendment intended to be proposed to put on an impromptu cowboy contest ENERGY PRICES ARE AT HIS- TORIC HIGHS amendment SA 2746 proposed by Mr. FRIST in Cheyenne. Frontier Days has come a (for Mr. SPECTER (for himself and Mr. long way since that time, incor- Mr. KERRY submitted the following LEAHY)) to the bill S. 852, to create a fair and porating Indian war dances, artillery resolution; which was referred to the efficient system to resolve claims of victims drills, a full carnival, rowdy street Committee on Energy and Natural Re- for bodily injury caused by asbestos expo- dances, country and western enter- sources: sure, and for other purposes; which was or- tainers, and renown musical perform- dered to lie on the table. S. RES. 372 SA 2768. Mr. KERRY submitted an amend- ances. However, Frontier Days stays Whereas the Federal Government is on the ment intended to be proposed to amendment true to its roots, showcasing cowboys verge of one of the biggest oil and gas give- SA 2746 proposed by Mr. FRIST (for Mr. SPEC- and cowgirls in sports such as saddle aways in American history, costing Amer- TER (for himself and Mr. LEAHY)) to the bill bronc riding, wild horse racing, bull ican taxpayers at least $7,000,000,000 in lost S. 852, supra; which was ordered to lie on the dogging, steer wrestling, calf roping, revenue over the next 5 years; table. and bareback riding, events which Whereas according to the budget plan of SA 2769. Mr. COBURN submitted an amend- the Department of the Interior, it is pro- ment intended to be proposed by him to the truly demonstrate their cowboy skills. jected that the Government will allow com- While in Wyoming for the 2005 Chey- bill S. 852, supra; which was ordered to lie on panies to pump approximately $65,000,000,000 the table. enne Frontier Days celebration, I had worth of oil and natural gas from Federal SA 2770. Mr. COBURN submitted an the distinct honor of delivering a state- territory over the next 5 years without pay- amendment intended to be proposed by him ment from President Bush supporting ing any royalties to the Government; to the bill S. 852, supra; which was ordered to the National Day of the American Cow- Whereas the Minerals Management Service lie on the table. boy. His statement outlined the impor- of the Department of the Interior, which SA 2771. Mr. COBURN submitted an tance of the cowboy, ‘‘as a symbol of oversees the leases and collects the royal- amendment intended to be proposed by him the grand history of the American ties, estimates that the amount of royalty- to the bill S. 852, supra; which was ordered to free oil will quadruple by 2011, to 112,000,000 West,’’ and recognized the Cowboy’s lie on the table. barrels; SA 2772. Mr. COBURN submitted an love of land and country as character Whereas the volume of royalty-free natural amendment intended to be proposed by him traits which should be revered by all gas is expected to climb by almost half, to to the bill S. 852, supra; which was ordered to Americans. I could not agree more. about 1,200,000,000,000 cubic feet by 2011; lie on the table. Although the National Day of the Whereas approximately 30 percent of all oil SA 2773. Mr. COBURN submitted an American Cowboy came and went in and over 20 percent of all gas produced in the amendment intended to be proposed by him 2005, the celebration has continued United States comes from the outer Conti- to the bill S. 852, supra; which was ordered to throughout the United States and nental Shelf; lie on the table. across the world. For example, Arizo- Whereas it was the intent of Congress to SA 2774. Mr. COBURN submitted an provide royalty relief to promote exploration na’s Governor recently issued an offi- amendment intended to be proposed by him and production in deep waters of the outer to the bill S. 852, supra; which was ordered to cial proclamation declaring July 22, Continental Shelf only at a time when oil lie on the table. 2006 as the Second Annual National and gas prices were comparatively low; SA 2775. Mr. COBURN submitted an Day of the Cowboy in Arizona. T.J. Whereas the Department of the Interior amendment intended to be proposed by him Casey, a country musician and cowboy has always insisted that companies should to the bill S. 852, supra; which was ordered to poet from Montana, is helping to pro- not be entitled to royalty relief if market lie on the table. mote the National Day of the Cowboy prices for oil and gas climbed above certain SA 2776. Mr. COBURN submitted an amend- by carrying his flag on tour with him, trigger points; ment intended to be proposed by him to the Whereas the 12 United States oil compa- and Pro Rodeo Hall of Fame Executive bill S. 852, supra; which was ordered to lie on nies in the Standard & Poor’s 500 that have the table. Director Larry McCormack and his reported fourth-quarter results have seen an SA 2777. Mr. COBURN submitted an staff are planning a National Day of average 48 percent rise in earnings and are amendment intended to be proposed by him the Cowboy flag presentation during expected to see full-year earnings of to the bill S. 852, supra; which was ordered to their upcoming annual induction cere- $96,500,000,000; lie on the table. mony on July 15, 2006. Whereas the profit growth for oil compa- SA 2778. Mr. COBURN submitted an Support for the National Day of the nies is not nearing an end, with energy ana- amendment intended to be proposed by him American Cowboy is not confined to lysts expecting 15 percent growth in earnings to the bill S. 852, supra; which was ordered to our Nation’s borders. The Desert Cow- at those companies in 2006; lie on the table. Whereas, at the same time oil and gas com- SA 2779. Mr. COBURN submitted an boys, a group of men and women in the panies are posting record profits, families in amendment intended to be proposed by him United States Military and Depart- the United States are struggling with record to the bill S. 852, supra; which was ordered to ment of Defense civilians who have energy costs including a 48 percent increase lie on the table. been serving our country in Iraq since in the cost of natural gas for this heating SA 2780. Mr. COBURN submitted an December of 2005, planted their Na- season and a projected 7.3 percent increase in amendment intended to be proposed by him tional Day of the Cowboy flag promi- gasoline price from the previous year; to the bill S. 852, supra; which was ordered to nently in their camp shortly after their Whereas the Energy Information Adminis- lie on the table. arrival. Some of these folks are in Iraq tration projects that these prices will hold SA 2781. Mr. COBURN submitted an steady or increase over the course of the amendment intended to be proposed by him for their, third, fourth and even fifth next 2 years; and to the bill S. 852, supra; which was ordered to rotations. This touching display of sup- Whereas royalty revenues benefit 38 lie on the table. port by those completing dangerous States, 41 Indian tribes, and fund the Na- SA 2782. Mr. COBURN submitted an missions so far from home certainly tional Historic Preservation Fund, and the amendment intended to be proposed by him

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to the bill S. 852, supra; which was ordered to LEAHY)) to the bill S. 852, supra; which was amendment SA 2746 proposed by Mr. FRIST lie on the table. ordered to lie on the table. (for Mr. SPECTER (for himself and Mr. SA 2783. Mr. COBURN submitted an SA 2799. Mr. CORNYN submitted an LEAHY)) to the bill S. 852, supra; which was amendment intended to be proposed by him amendment intended to be proposed to ordered to lie on the table. to the bill S. 852, supra; which was ordered to amendment SA 2746 proposed by Mr. FRIST SA 2814. Mr. KENNEDY submitted an lie on the table. (for Mr. SPECTER (for himself and Mr. amendment intended to be proposed to SA 2784. Mr. COBURN submitted an LEAHY)) to the bill S. 852, supra; which was amendment SA 2746 proposed by Mr. FRIST amendment intended to be proposed by him ordered to lie on the table. (for Mr. SPECTER (for himself and Mr. to the bill S. 852, supra; which was ordered to SA 2800. Mr. CORNYN submitted an LEAHY)) to the bill S. 852, supra; which was lie on the table. amendment intended to be proposed to ordered to lie on the table. SA 2785. Mr. COBURN submitted an amendment SA 2746 proposed by Mr. FRIST SA 2815. Mr. KENNEDY submitted an amendment intended to be proposed by him (for Mr. SPECTER (for himself and Mr. amendment intended to be proposed to to the bill S. 852, supra; which was ordered to LEAHY)) to the bill S. 852, supra; which was amendment SA 2746 proposed by Mr. FRIST lie on the table. ordered to lie on the table. (for Mr. SPECTER (for himself and Mr. SA 2786. Mr. COBURN submitted an amend- SA 2801. Mr. CORNYN submitted an LEAHY)) to the bill S. 852, supra; which was ment intended to be proposed by him to the amendment intended to be proposed to ordered to lie on the table. bill S. 852, supra; which was ordered to lie on amendment SA 2746 proposed by Mr. FRIST SA 2816. Mr. KENNEDY submitted an the table. (for Mr. SPECTER (for himself and Mr. amendment intended to be proposed to SA 2787. Mr. CORNYN submitted an LEAHY)) to the bill S. 852, supra; which was amendment SA 2746 proposed by Mr. FRIST amendment intended to be proposed to ordered to lie on the table. (for Mr. SPECTER (for himself and Mr. amendment SA 2746 proposed by Mr. FRIST SA 2802. Mr. CORNYN submitted an LEAHY)) to the bill S. 852, supra; which was (for Mr. SPECTER (for himself and Mr. amendment intended to be proposed to ordered to lie on the table. LEAHY)) to the bill S. 852, supra; which was amendment SA 2746 proposed by Mr. FRIST SA 2817. Mr. KENNEDY submitted an ordered to lie on the table. (for Mr. SPECTER (for himself and Mr. amendment intended to be proposed to SA 2788. Mr. CORNYN submitted an LEAHY)) to the bill S. 852, supra; which was amendment SA 2746 proposed by Mr. FRIST amendment intended to be proposed to ordered to lie on the table. (for Mr. SPECTER (for himself and Mr. amendment SA 2746 proposed by Mr. FRIST SA 2803. Mr. CORNYN submitted an LEAHY)) to the bill S. 852, supra; which was (for Mr. SPECTER (for himself and Mr. amendment intended to be proposed to ordered to lie on the table. LEAHY)) to the bill S. 852, supra; which was amendment SA 2746 proposed by Mr. FRIST SA 2818. Mr. KENNEDY submitted an ordered to lie on the table. (for Mr. SPECTER (for himself and Mr. amendment intended to be proposed to SA 2789. Mr. CORNYN submitted an LEAHY)) to the bill S. 852, supra; which was amendment SA 2746 proposed by Mr. FRIST amendment intended to be proposed to ordered to lie on the table. (for Mr. SPECTER (for himself and Mr. amendment SA 2746 proposed by Mr. FRIST SA 2804. Mr. REID submitted an amend- LEAHY)) to the bill S. 852, supra; which was (for Mr. SPECTER (for himself and Mr. ment intended to be proposed to amendment ordered to lie on the table. LEAHY)) to the bill S. 852, supra; which was SA 2746 proposed by Mr. FRIST (for Mr. SPEC- SA 2819. Mr. KENNEDY submitted an ordered to lie on the table. TER (for himself and Mr. LEAHY)) to the bill amendment intended to be proposed to SA 2790. Mr. CORNYN submitted an S. 852, supra; which was ordered to lie on the amendment SA 2746 proposed by Mr. FRIST amendment intended to be proposed to table. (for Mr. SPECTER (for himself and Mr. amendment SA 2746 proposed by Mr. FRIST SA 2805. Mr. REID submitted an amend- LEAHY)) to the bill S. 852, supra; which was (for Mr. SPECTER (for himself and Mr. ment intended to be proposed to amendment ordered to lie on the table. LEAHY)) to the bill S. 852, supra; which was SA 2746 proposed by Mr. FRIST (for Mr. SPEC- SA 2820. Mr. KENNEDY submitted an ordered to lie on the table. TER (for himself and Mr. LEAHY)) to the bill amendment intended to be proposed to SA 2791. Mr. CORNYN submitted an S. 852, supra; which was ordered to lie on the amendment SA 2746 proposed by Mr. FRIST amendment intended to be proposed to table. (for Mr. SPECTER (for himself and Mr. amendment SA 2746 proposed by Mr. FRIST SA 2806. Mr. REID submitted an amend- LEAHY)) to the bill S. 852, supra; which was (for Mr. SPECTER (for himself and Mr. ment intended to be proposed to amendment ordered to lie on the table. LEAHY)) to the bill S. 852, supra; which was SA 2746 proposed by Mr. FRIST (for Mr. SPEC- SA 2821. Mr. KENNEDY submitted an ordered to lie on the table. TER (for himself and Mr. LEAHY)) to the bill amendment intended to be proposed to SA 2792. Mr. CORNYN submitted an S. 852, supra; which was ordered to lie on the amendment SA 2746 proposed by Mr. FRIST amendment intended to be proposed to table. (for Mr. SPECTER (for himself and Mr. amendment SA 2746 proposed by Mr. FRIST SA 2807. Mr. REID submitted an amend- LEAHY)) to the bill S. 852, supra; which was (for Mr. SPECTER (for himself and Mr. ment intended to be proposed to amendment ordered to lie on the table. LEAHY)) to the bill S. 852, supra; which was SA 2746 proposed by Mr. FRIST (for Mr. SPEC- SA 2822. Mr. KENNEDY submitted an ordered to lie on the table. TER (for himself and Mr. LEAHY)) to the bill amendment intended to be proposed to SA 2793. Mr. CORNYN submitted an S. 852, supra; which was ordered to lie on the amendment SA 2746 proposed by Mr. FRIST amendment intended to be proposed to table. (for Mr. SPECTER (for himself and Mr. amendment SA 2746 proposed by Mr. FRIST SA 2808. Mr. SALAZAR submitted an LEAHY)) to the bill S. 852, supra; which was (for Mr. SPECTER (for himself and Mr. amendment intended to be proposed to ordered to lie on the table. LEAHY)) to the bill S. 852, supra; which was amendment SA 2746 proposed by Mr. FRIST SA 2823. Mr. DAYTON submitted an ordered to lie on the table. (for Mr. SPECTER (for himself and Mr. amendment intended to be proposed to SA 2794. Mr. CORNYN submitted an LEAHY)) to the bill S. 852, supra; which was amendment SA 2746 proposed by Mr. FRIST amendment intended to be proposed to ordered to lie on the table. (for Mr. SPECTER (for himself and Mr. amendment SA 2746 proposed by Mr. FRIST SA 2809. Mr. SALAZAR submitted an LEAHY)) to the bill S. 852, supra; which was (for Mr. SPECTER (for himself and Mr. amendment intended to be proposed to ordered to lie on the table. LEAHY)) to the bill S. 852, supra; which was amendment SA 2746 proposed by Mr. FRIST SA 2824. Mr. KOHL submitted an amend- ordered to lie on the table. (for Mr. SPECTER (for himself and Mr. ment intended to be proposed to amendment SA 2795. Mr. CORNYN submitted an LEAHY)) to the bill S. 852, supra; which was SA 2746 proposed by Mr. FRIST (for Mr. SPEC- amendment intended to be proposed to ordered to lie on the table. TER (for himself and Mr. LEAHY)) to the bill amendment SA 2746 proposed by Mr. FRIST SA 2810. Mr. KENNEDY submitted an S. 852, supra; which was ordered to lie on the (for Mr. SPECTER (for himself and Mr. amendment intended to be proposed to table. LEAHY)) to the bill S. 852, supra; which was amendment SA 2746 proposed by Mr. FRIST SA 2825. Mr. SALAZAR submitted an ordered to lie on the table. (for Mr. SPECTER (for himself and Mr. amendment intended to be proposed to SA 2796. Mr. CORNYN submitted an LEAHY)) to the bill S. 852, supra; which was amendment SA 2746 proposed by Mr. FRIST amendment intended to be proposed to ordered to lie on the table. (for Mr. SPECTER (for himself and Mr. amendment SA 2746 proposed by Mr. FRIST SA 2811. Mr. KENNEDY submitted an LEAHY)) to the bill S. 852, supra; which was (for Mr. SPECTER (for himself and Mr. amendment intended to be proposed to ordered to lie on the table. LEAHY)) to the bill S. 852, supra; which was amendment SA 2746 proposed by Mr. FRIST SA 2826. Mr. LEVIN submitted an amend- ordered to lie on the table. (for Mr. SPECTER (for himself and Mr. ment intended to be proposed to amendment SA 2797. Mr. CORNYN submitted an LEAHY)) to the bill S. 852, supra; which was SA 2746 proposed by Mr. FRIST (for Mr. SPEC- amendment intended to be proposed to ordered to lie on the table. TER (for himself and Mr. LEAHY)) to the bill amendment SA 2746 proposed by Mr. FRIST SA 2812. Mr. KENNEDY submitted an S. 852, supra; which was ordered to lie on the (for Mr. SPECTER (for himself and Mr. amendment intended to be proposed to table. LEAHY)) to the bill S. 852, supra; which was amendment SA 2746 proposed by Mr. FRIST SA 2827. Mr. LEVIN submitted an amend- ordered to lie on the table. (for Mr. SPECTER (for himself and Mr. ment intended to be proposed to amendment SA 2798. Mr. CORNYN submitted an LEAHY)) to the bill S. 852, supra; which was SA 2746 proposed by Mr. FRIST (for Mr. SPEC- amendment intended to be proposed to ordered to lie on the table. TER (for himself and Mr. LEAHY)) to the bill amendment SA 2746 proposed by Mr. FRIST SA 2813. Mr. KENNEDY submitted an S. 852, supra; which was ordered to lie on the (for Mr. SPECTER (for himself and Mr. amendment intended to be proposed to table.

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SA 2828. Mrs. BOXER submitted an amend- amendment SA 2746 proposed by Mr. FRIST SA 2857. Mr. DURBIN submitted an amend- ment intended to be proposed to amendment (for Mr. SPECTER (for himself and Mr. ment intended to be proposed to amendment SA 2746 proposed by Mr. FRIST (for Mr. SPEC- LEAHY)) to the bill S. 852, supra; which was SA 2746 proposed by Mr. FRIST (for Mr. SPEC- TER (for himself and Mr. LEAHY)) to the bill ordered to lie on the table. TER (for himself and Mr. LEAHY)) to the bill S. 852, supra; which was ordered to lie on the SA 2843. Mr. GRAHAM submitted an S. 852, supra; which was ordered to lie on the table. amendment intended to be proposed to table. SA 2829. Mrs. BOXER submitted an amend- amendment SA 2746 proposed by Mr. FRIST SA 2858. Mr. DURBIN submitted an amend- ment intended to be proposed to amendment (for Mr. SPECTER (for himself and Mr. ment intended to be proposed to amendment SA 2746 proposed by Mr. FRIST (for Mr. SPEC- LEAHY)) to the bill S. 852, supra; which was SA 2746 proposed by Mr. FRIST (for Mr. SPEC- TER (for himself and Mr. LEAHY)) to the bill ordered to lie on the table. TER (for himself and Mr. LEAHY)) to the bill S. 852, supra; which was ordered to lie on the SA 2844. Mr. GRAHAM submitted an S. 852, supra; which was ordered to lie on the table. amendment intended to be proposed to table. SA 2830. Mrs. BOXER submitted an amend- amendment SA 2746 proposed by Mr. FRIST SA 2859. Mr. DURBIN submitted an amend- ment intended to be proposed to amendment (for Mr. SPECTER (for himself and Mr. ment intended to be proposed to amendment SA 2746 proposed by Mr. FRIST (for Mr. SPEC- LEAHY)) to the bill S. 852, supra; which was SA 2746 proposed by Mr. FRIST (for Mr. SPEC- TER (for himself and Mr. LEAHY)) to the bill ordered to lie on the table. TER (for himself and Mr. LEAHY)) to the bill S. 852, supra; which was ordered to lie on the SA 2845. Mr. BURNS (for himself and Mr. S. 852, supra; which was ordered to lie on the table. BAUCUS) submitted an amendment intended table. SA 2831. Mrs. BOXER submitted an amend- to be proposed to amendment SA 2746 pro- SA 2860. Mr. SCHUMER submitted an ment intended to be proposed to amendment posed by Mr. FRIST (for Mr. SPECTER (for amendment intended to be proposed to SA 2746 proposed by Mr. FRIST (for Mr. SPEC- himself and Mr. LEAHY)) to the bill S. 852, amendment SA 2746 proposed by Mr. FRIST TER (for himself and Mr. LEAHY)) to the bill supra; which was ordered to lie on the table. (for Mr. SPECTER (for himself and Mr. SA 2846. Mr. CORNYN submitted an S. 852, supra; which was ordered to lie on the LEAHY)) to the bill S. 852, supra; which was amendment intended to be proposed to table. ordered to lie on the table. SA 2832. Mrs. BOXER submitted an amend- amendment SA 2746 proposed by Mr. FRIST SA 2861. Mr. FEINGOLD submitted an ment intended to be proposed to amendment (for Mr. SPECTER (for himself and Mr. amendment intended to be proposed to LEAHY)) to the bill S. 852, supra; which was SA 2746 proposed by Mr. FRIST (for Mr. SPEC- amendment SA 2746 proposed by Mr. FRIST ordered to lie on the table. TER (for himself and Mr. LEAHY)) to the bill (for Mr. SPECTER (for himself and Mr. SA 2847. Mr. ISAKSON submitted an S. 852, supra; which was ordered to lie on the LEAHY)) to the bill S. 852, supra; which was amendment intended to be proposed to table. ordered to lie on the table. amendment SA 2746 proposed by Mr. FRIST SA 2833. Ms. LANDRIEU submitted an SA 2862. Mr. FEINGOLD submitted an (for Mr. SPECTER (for himself and Mr. amendment intended to be proposed to amendment intended to be proposed to LEAHY)) to the bill S. 852, supra; which was amendment SA 2746 proposed by Mr. FRIST amendment SA 2746 proposed by Mr. FRIST ordered to lie on the table. (for Mr. SPECTER (for himself and Mr. SA 2848. Mr. THUNE (for himself, Mr. (for Mr. SPECTER (for himself and Mr. LEAHY)) to the bill S. 852, supra; which was COLEMAN, and Mr. GRAHAM) submitted an LEAHY)) to the bill S. 852, supra; which was ordered to lie on the table. amendment intended to be proposed to ordered to lie on the table. SA 2834. Ms. LANDRIEU submitted an SA 2863. Mr. FEINGOLD submitted an amendment SA 2746 proposed by Mr. FRIST amendment intended to be proposed to amendment intended to be proposed to (for Mr. SPECTER (for himself and Mr. amendment SA 2746 proposed by Mr. FRIST amendment SA 2746 proposed by Mr. FRIST LEAHY)) to the bill S. 852, supra; which was (for Mr. SPECTER (for himself and Mr. ordered to lie on the table. (for Mr. SPECTER (for himself and Mr. LEAHY)) to the bill S. 852, supra; which was SA 2849. Mr. SESSIONS submitted an LEAHY)) to the bill S. 852, supra; which was ordered to lie on the table. amendment intended to be proposed to ordered to lie on the table. SA 2835. Mr. KENNEDY submitted an amendment SA 2746 proposed by Mr. FRIST SA 2864. Mr. BIDEN submitted an amend- amendment intended to be proposed to (for Mr. SPECTER (for himself and Mr. ment intended to be proposed to amendment amendment SA 2746 proposed by Mr. FRIST LEAHY)) to the bill S. 852, supra; which was SA 2746 proposed by Mr. FRIST (for Mr. SPEC- (for Mr. SPECTER (for himself and Mr. ordered to lie on the table. TER (for himself and Mr. LEAHY)) to the bill LEAHY)) to the bill S. 852, supra; which was SA 2850. Mr. KYL (for himself and Mr. S. 852, supra; which was ordered to lie on the ordered to lie on the table. CHAMBLISS) submitted an amendment in- table. SA 2836. Mr. KENNEDY submitted an tended to be proposed to amendment SA 2746 SA 2865. Mr. BIDEN submitted an amend- amendment intended to be proposed to proposed by Mr. FRIST (for Mr. SPECTER (for ment intended to be proposed to amendment amendment SA 2746 proposed by Mr. FRIST himself and Mr. LEAHY)) to the bill S. 852, SA 2746 proposed by Mr. FRIST (for Mr. SPEC- (for Mr. SPECTER (for himself and Mr. supra; which was ordered to lie on the table. TER (for himself and Mr. LEAHY)) to the bill LEAHY)) to the bill S. 852, supra; which was SA 2851. Mr. KYL submitted an amend- S. 852, supra; which was ordered to lie on the ordered to lie on the table. ment intended to be proposed to amendment table. SA 2837. Mr. KENNEDY submitted an SA 2746 proposed by Mr. FRIST (for Mr. SPEC- SA 2866. Mr. BIDEN submitted an amend- amendment intended to be proposed to TER (for himself and Mr. LEAHY)) to the bill ment intended to be proposed to amendment amendment SA 2746 proposed by Mr. FRIST S. 852, supra; which was ordered to lie on the SA 2746 proposed by Mr. FRIST (for Mr. SPEC- (for Mr. SPECTER (for himself and Mr. table. TER (for himself and Mr. LEAHY)) to the bill LEAHY)) to the bill S. 852, supra; which was SA 2852. Mr. DURBIN submitted an amend- S. 852, supra; which was ordered to lie on the ordered to lie on the table. ment intended to be proposed to amendment table. SA 2838. Mr. LAUTENBERG (for himself SA 2746 proposed by Mr. FRIST (for Mr. SPEC- SA 2867. Mr. BIDEN submitted an amend- and Mr. MENENDEZ) submitted an amend- TER (for himself and Mr. LEAHY)) to the bill ment intended to be proposed to amendment ment intended to be proposed to amendment S. 852, supra; which was ordered to lie on the SA 2746 proposed by Mr. FRIST (for Mr. SPEC- SA 2746 proposed by Mr. FRIST (for Mr. SPEC- table. TER (for himself and Mr. LEAHY)) to the bill TER (for himself and Mr. LEAHY)) to the bill SA 2853. Mr. DURBIN submitted an amend- S. 852, supra; which was ordered to lie on the S. 852, supra; which was ordered to lie on the ment intended to be proposed to amendment table. table. SA 2746 proposed by Mr. FRIST (for Mr. SPEC- SA 2868. Mr. BIDEN submitted an amend- SA 2839. Mr. LAUTENBERG (for himself TER (for himself and Mr. LEAHY)) to the bill ment intended to be proposed to amendment and Mr. MENENDEZ) submitted an amend- S. 852, supra; which was ordered to lie on the SA 2746 proposed by Mr. FRIST (for Mr. SPEC- ment intended to be proposed to amendment table. TER (for himself and Mr. LEAHY)) to the bill SA 2746 proposed by Mr. FRIST (for Mr. SPEC- SA 2854. Mr. DURBIN submitted an amend- S. 852, supra; which was ordered to lie on the TER (for himself and Mr. LEAHY)) to the bill ment intended to be proposed to amendment table. S. 852, supra; which was ordered to lie on the SA 2746 proposed by Mr. FRIST (for Mr. SPEC- SA 2869. Mr. BIDEN submitted an amend- table. TER (for himself and Mr. LEAHY)) to the bill ment intended to be proposed to amendment SA 2840. Mr. ENSIGN submitted an amend- S. 852, supra; which was ordered to lie on the SA 2746 proposed by Mr. FRIST (for Mr. SPEC- ment intended to be proposed to amendment table. TER (for himself and Mr. LEAHY)) to the bill SA 2746 proposed by Mr. FRIST (for Mr. SPEC- SA 2855. Mr. DURBIN submitted an amend- S. 852, supra; which was ordered to lie on the TER (for himself and Mr. LEAHY)) to the bill ment intended to be proposed to amendment table. S. 852, supra; which was ordered to lie on the SA 2746 proposed by Mr. FRIST (for Mr. SPEC- SA 2870. Mr. BIDEN submitted an amend- table. TER (for himself and Mr. LEAHY)) to the bill ment intended to be proposed to amendment SA 2841. Mr. BURNS submitted an amend- S. 852, supra; which was ordered to lie on the SA 2746 proposed by Mr. FRIST (for Mr. SPEC- ment intended to be proposed to amendment table. TER (for himself and Mr. LEAHY)) to the bill SA 2746 proposed by Mr. FRIST (for Mr. SPEC- SA 2856. Mr. DURBIN submitted an amend- S. 852, supra; which was ordered to lie on the TER (for himself and Mr. LEAHY)) to the bill ment intended to be proposed to amendment table. S. 852, supra; which was ordered to lie on the SA 2746 proposed by Mr. FRIST (for Mr. SPEC- SA 2871. Mr. LAUTENBERG submitted an table. TER (for himself and Mr. LEAHY)) to the bill amendment intended to be proposed to SA 2842. Mr. GRAHAM submitted an S. 852, supra; which was ordered to lie on the amendment SA 2746 proposed by Mr. FRIST amendment intended to be proposed to table. (for Mr. SPECTER (for himself and Mr.

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LEAHY)) to the bill S. 852, supra; which was TER (for himself and Mr. LEAHY)) to the bill ical eligibility to such claimant, and not- ordered to lie on the table. S. 852, supra; which was ordered to lie on the withstanding the disease category des- SA 2872. Mr. INHOFE submitted an amend- table. ignated in the certificate or the eligible dis- ment intended to be proposed to amendment SA 2886. Mr. SPECTER submitted an amend- ease or condition established in accordance SA 2746 proposed by Mr. FRIST (for Mr. SPEC- ment intended to be proposed to amendment with this section, or the value of the award TER (for himself and Mr. LEAHY)) to the bill SA 2746 proposed by Mr. FRIST (for Mr. SPEC- determined in accordance with section 114, S. 852, supra; which was ordered to lie on the TER (for himself and Mr. LEAHY)) to the bill such claimant shall be entitled to an award table. S. 852, supra; which was ordered to lie on the that is not less than that awarded to claim- SA 2873. Mr. INHOFE submitted an amend- table. ants who suffer from asbestosis, Level IV. ment intended to be proposed to amendment SA 2887. Mr. SPECTER submitted an amend- For all malignant claims filed by SA 2746 proposed by Mr. FRIST (for Mr. SPEC- ment intended to be proposed to amendment vermiculite mining and processing claim- TER (for himself and Mr. LEAHY)) to the bill SA 2746 proposed by Mr. FRIST (for Mr. SPEC- ants, such claimant shall be entitled to an S. 852, supra; which was ordered to lie on the TER (for himself and Mr. LEAHY)) to the bill award that corresponds to the malignant dis- table. S. 852, supra; which was ordered to lie on the ease category designated by the Adminis- SA 2874. Mr. INHOFE submitted an amend- table. trator or the Physicians Panel. ment intended to be proposed to amendment SA 2888. Mr. ISAKSON submitted an On page 366, strike lines 2 through 8, and SA 2746 proposed by Mr. FRIST (for Mr. SPEC- amendment intended to be proposed by him insert the following: TER (for himself and Mr. LEAHY)) to the bill to the bill S. 852, supra; which was ordered to (a) VERMICULITE MINING AND PROCESSING S. 852, supra; which was ordered to lie on the lie on the table. CLAIMANTS.—Nothing in this Act shall pre- table. clude the formation of a fund for the pay- f SA 2875. Mr. INHOFE submitted an amend- ment of eligible medical expenses related to ment intended to be proposed to amendment TEXT OF AMENDMENTS treating asbestos-related disease for current SA 2746 proposed by Mr. FRIST (for Mr. SPEC- and former residents of vermiculite mining TER (for himself and Mr. LEAHY)) to the bill and processing communities, as described S. 852, supra; which was ordered to lie on the SA 2767. Mr. DAYTON submitted an under section 121(c)(4). The payment of any table. amendment intended to be proposed to such medical expenses shall not be collateral SA 2876. Mr. INHOFE submitted an amend- amendment SA 2746 proposed by Mr. source compensation as defined under sec- ment intended to be proposed to amendment FRIST (for Mr. SPECTER (for himself and tion 134(a). SA 2746 proposed by Mr. FRIST (for Mr. SPEC- Mr. LEAHY) to the bill S. 852, to create TER (for himself and Mr. LEAHY)) to the bill SA 2768. Mr. KERRY submitted an S. 852, supra; which was ordered to lie on the a fair and efficient system to resolve amendment intended to be proposed to table. claims of victims for bodily injury amendment SA 2746 proposed by Mr. SA 2877. Mrs. CLINTON (for herself, Mr. caused by asbestos exposure, and for FRIST (for Mr. SPECTER (for himself and KERRY, Mr. LAUTENBERG, and Mr. MENENDEZ) other purposes; which was ordered to Mr. LEAHY) to the bill S. 852, to create submitted an amendment intended to be pro- lie on the table; as follows: posed to amendment SA 2746 proposed by Mr. a fair and efficient system to resolve On page 98, strike lines 6 through 17, and FRIST (for Mr. SPECTER (for himself and Mr. claims of victims for bodily injury insert the following: LEAHY)) to the bill S . 852, supra; which was caused by asbestos exposure, and for (4) WAIVER FOR WORKERS AND RESIDENTS OF ordered to lie on the table. other purposes; which was ordered to VERMICULITE MINING AND PROCESSING COMMU- SA 2878. Mrs. CLINTON (for herself, Mr. lie on the table; as follows: KERRY, Mr. LAUTENBERG, and Mr. MENENDEZ) NITIES.— submitted an amendment intended to be pro- (A) IN GENERAL.—Because of the nature of On page 123, between lines 2 and 3, insert posed to amendment SA 2746 proposed by Mr. asbestos exposure related to the vermiculite the following: FRIST (for Mr. SPECTER (for himself and Mr. mining operations in Libby, Montana, and SEC. 122. WAIVER FOR VETERANS. LEAHY)) to the bill S . 852, supra; which was the vermiculite processing operations associ- Notwithstanding any other provision of ordered to lie on the table. ated with such mining operations, the Ad- this Act, because of the unique, short-term SA 2879. Mr. REID (for Mr. BIDEN) sub- ministrator shall waive the exposure require- nature of the asbestos exposure related to mitted an amendment intended to be pro- ments under this subtitle for individuals who service in the United States military, the posed to amendment SA 2746 proposed by Mr. worked— Administrator shall waive the exposure re- FRIST (for Mr. SPECTER (for himself and Mr. (i) at the vermiculite mining operations in quirements of this subtitle for individuals LEAHY)) to the bill S. 852, supra; which was Libby, Montana, or lived or worked within a who are veterans of any service of the United ordered to lie on the table. 20-mile radius of such mining operations, for States military. Claimants under this sec- SA 2880. Mr. MARTINEZ (for himself, Mr. at least 12 months before December 31, 2004; tion shall provide such supporting docu- ALLEN, Mr. ROBERTS, and Mr. BURR) sub- and mentation as the Administrator shall re- mitted an amendment intended to be pro- (ii) at sites processing vermiculite mined quire. posed to amendment SA 2746 proposed by Mr. from mining operations in Libby, Montana; FRIST (for Mr. SPECTER (for himself and Mr. or SA 2769. Mr. CORNYN submitted an LEAHY)) to the bill S . 852, supra; which was (iii) or lived within a 20 mile radius of a amendment intended to be proposed by ordered to lie on the table. processing site described in clause (ii), for at him to the bill S. 852, to create a fair SA 2881. Mr. BURNS (for himself and Mr. least 12 months before December 31, 2004. and efficient system to resolve claims BAUCUS) submitted an amendment intended (B) REQUIRED DOCUMENTATION.—Claimants of victims for bodily injury caused by under this paragraph shall provide such sup- to be proposed to amendment SA 2746 pro- asbestos exposure, and for other pur- posed by Mr. FRIST (for Mr. SPECTER (for porting documentation as the Administrator poses; which was ordered to lie on the himself and Mr. LEAHY)) to the bill S. 852, shall require. supra; which was ordered to lie on the table. On page 118, strike line 6 and all that fol- table; as follows: SA 2882. Mr. SPECTER (for himself, Mr. lows through page 120, line 4, and insert the On page 109, strike line 13 and all that fol- LIEBERMAN, and Mr. DODD) submitted an following: lows through page 111, line 2. amendment intended to be proposed to (8) VERMICULITE MINING AND PROCESSING On page 116, strike lines 1 through 23, and amendment SA 2746 proposed by Mr. FRIST CLAIMANTS.— insert the following: (for Mr. SPECTER (for himself and Mr. (A) IN GENERAL.—A vermiculite mining and (e) INSTITUTE OF MEDICINE STUDY.— LEAHY)) to the bill S. 852, supra; which was processing claimant, as described under sub- (1) STUDY ON OTHER CANCERS.—Not later ordered to lie on the table. section (c)(4), may elect to have the claim- than llllllllllll, 2006, the Insti- SA 2883. Mr. SPECTER (for himself, Mr. ant’s claim designated as an exceptional tute of Medicine of the National Academy of LIEBERMAN, and Mr. DODD) submitted an medical claim and referred to a Physicians Sciences shall complete a study contracted amendment intended to be proposed to Panel for review. In reviewing the medical with the National Institutes of Health to de- amendment SA 2746 proposed by Mr. FRIST evidence submitted by such a claimant in termine whether there is a causal link be- (for Mr. SPECTER (for himself and Mr. support of that claim, the Physicians Panel tween asbestos exposure and other cancers, LEAHY)) to the bill S. 852, supra; which was shall take into consideration the unique and including colorectal, laryngeal, esophageal, ordered to lie on the table. serious nature of asbestos exposure in pharyngeal, and stomach cancers, except for SA 2884. Mr. SPECTER submitted an amend- vermiculite mining and processing oper- mesothelioma and lung cancers. ment intended to be proposed to amendment ations, including the nature of the pleural (2) STUDY CRITERIA.—In conducting the SA 2746 proposed by Mr. FRIST (for Mr. SPEC- disease related to asbestos exposure from study required under paragraph (1), the Insti- TER (for himself and Mr. LEAHY)) to the bill such sites. tute of Medicine— S. 852, supra; which was ordered to lie on the (B) CLAIMS.—For all claims for Levels II (A) shall— table. through IV filed by vermiculite mining and (i) base any evaluation completed during SA 2885. Mr. SPECTER submitted an amend- processing claimants, as described under sub- the course of the study only on multicen- ment intended to be proposed to amendment section (c)(4), once the Administrator or the tered, double masked, placebo controlled, SA 2746 proposed by Mr. FRIST (for Mr. SPEC- Physicians Panel issues a certificate of med- randomized clinical trials with explicit data

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00049 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1184 CONGRESSIONAL RECORD — SENATE February 14, 2006 safety and monitoring boards incorporated (i) base any evaluation completed during Medicine of the National Academy of into the data acquisition process of any such the course of the study only on multicen- Sciences shall complete a study contracted evaluation; tered, double masked, placebo controlled, with the National Institutes of Health to de- (ii) if the clinical trials described in clause randomized clinical trials with explicit data termine whether there is a causal link be- (i) are not available, base any evaluation safety and monitoring boards incorporated tween asbestos exposure and lung cancer completed during the course of the study into the data acquisition process of any such where there is evidence of bilateral pleural only on single centered, masked, nonrandom- evaluation; plaques or bilateral pleural thickening or bi- ized clinical trials; or (ii) if the clinical trials described in clause lateral pleural calcification, but no asbes- (iii) if the clinical trials described in (i) are not available, base any evaluation tosis. clauses (i) or (ii) are not available, employ completed during the course of the study (3) STUDY CRITERIA.—In conducting any meta–analysis of all available studies; only on single centered, masked, nonrandom- study required under paragraph (1) or (2), the (B) may not consider any studies that did ized clinical trials; or Institute of Medicine— not take out confounding variables; and (iii) if the clinical trials described in (A) shall— (C) shall reference any other study used to clauses (i) or (ii) are not available, employ (i) base any evaluation completed during reach the conclusions reported by the Insti- meta–analysis of all available studies; the course of the study only on multicen- tute. (B) may not consider any studies that did tered, double masked, placebo controlled, (3) REPORT.— not take out confounding variables; and randomized clinical trials with explicit data (A) IN GENERAL.—The Institute of Medicine (C) shall reference any other study used to safety and monitoring boards incorporated shall issue a report on its findings on causa- reach the conclusions reported by the Insti- into the data acquisition process of any such tion, which shall be transmitted to Congress, tute. evaluation; the Administrator, the Advisory Committee (3) REPORT.— (ii) if the clinical trials described in clause on Asbestos Disease Compensation or the (A) IN GENERAL.—The Institute of Medicine (i) are not available, base any evaluation Medical Advisory Committee, and the Physi- shall issue a report on its findings on causa- completed during the course of the study cians Panels. tion, which shall be transmitted to Congress, only on single centered, masked, nonrandom- (B) EFFECT OF REPORT IF STUDY NOT BASED the Administrator, the Advisory Committee ized clinical trials; or ON APPROPRIATE CRITERIA.—Any finding of on Asbestos Disease Compensation or the (iii) if the clinical trials described in the Institute of Medicine contained in the re- Medical Advisory Committee, and the Physi- clauses (i) or (ii) are not available, employ port required under subparagraph (A) that is cians Panels. meta–analysis of all available studies; not based on a study conducted in accord- (B) EFFECT OF REPORT IF STUDY NOT BASED (B) may not consider any studies that did ance with the requirements described in ON APPROPRIATE CRITERIA.—Any finding of not take out confounding variables; and paragraph (2) shall be deemed to be insuffi- the Institute of Medicine contained in the re- (C) shall reference any other study used to cient to show causation. port required under subparagraph (A) that is reach the conclusions reported by the Insti- not based on a study conducted in accord- (C) EFFECT OF REPORT IF STUDY IS BASED ON tute. ance with the requirements described in APPROPRIATE CRITERIA.— (4) REPORT.— paragraph (2) shall be deemed to be insuffi- (i) IN GENERAL.—If the report required (A) IN GENERAL.—The Institute of Medicine under subparagraph (A) is based on a study cient to show causation. shall issue a report on its findings on causa- (C) EFFECT OF REPORT IF STUDY IS BASED ON conducted in accordance with the require- tion for each study described under para- APPROPRIATE CRITERIA.— ments described in paragraph (2), such report graph (1) or (2), each such report shall be (i) IN GENERAL.—If the report required shall be binding on the Administrator and transmitted to Congress, the Administrator, under subparagraph (A) is based on a study Physicians Panels for purposes of deter- the Advisory Committee on Asbestos Disease conducted in accordance with the require- mining whether asbestos exposure is a sub- Compensation or the Medical Advisory Com- ments described in paragraph (2), such report stantial contributing factor to other cancers mittee, and the Physicians Panels. shall be binding on the Administrator and not covered by the Fund. (B) EFFECT OF REPORT IF STUDY NOT BASED Physicians Panels for purposes of deter- (ii) RECOMMENDATIONS OF ADDITIONAL ON APPROPRIATE CRITERIA.—Any finding of mining whether asbestos exposure is a sub- TIERS.—If the report required under subpara- the Institute of Medicine contained in a re- stantial contributing factor to lung cancer port required under subparagraph (A) that is graph (A) determines that asbestos exposure not covered by the Fund. is a substantial contributing factor to other not based on a study conducted in accord- (ii) RECOMMENDATIONS OF ADDITIONAL cancers not covered by the Fund, in accord- ance with the requirements described in TIERS.—If the report required under subpara- paragraph (3) shall be deemed to be insuffi- ance with the requirements of clause (i), the graph (A) determines that asbestos exposure Administrator may recommend that Con- cient to show causation. is a substantial contributing factor to lung (C) EFFECT OF REPORT IF STUDY IS BASED ON gress create additional tiers, appropriate cri- cancer not covered by the Fund, in accord- teria, and claims values. APPROPRIATE CRITERIA.— ance with the requirements of clause (i), the (i) IN GENERAL.—If a report required under Administrator may recommend that Con- subparagraph (A) is based on a study con- SA 2770. Mr. COBURN submitted an gress create additional tiers, appropriate cri- amendment intended to be proposed by ducted in accordance with the requirements teria, and claims values. described in paragraph (3), such report shall On page 116, line 24, strike ‘‘(f)’’ and insert him to the bill S. 852, to create a fair be binding on the Administrator and Physi- ‘‘(g)’’. and efficient system to resolve claims cians Panels for purposes of determining of victims for bodily injury caused by On page 118, line 7, strike ‘‘(g)’’ and insert ‘‘(h)’’. whether asbestos exposure is a substantial asbestos exposure, and for other pur- On page 125, line 23, strike ‘‘(h)’’ and insert contributing factor to cancers not covered poses; which was ordered to lie on the ‘‘(i)’’. by the Fund. table; as follows: (ii) RECOMMENDATIONS OF ADDITIONAL TIERS.—If the report required under subpara- On page 72, line 14, strike ‘‘(f)(8)’’ and in- SA 2771. Mr. COBURN submitted an graph (A) determines that asbestos exposure sert ‘‘(g)(8)’’. amendment intended to be proposed by is a substantial contributing factor to can- On page 111, strike line 3 and all that fol- him to the bill S. 852, to create a fair cers not covered by the Fund, in accordance lows through page 112, line 14. and efficient system to resolve claims with the requirements of clause (i), the Ad- On page 115, line 23, strike ‘‘(g)’’ and insert of victims for bodily injury caused by ministrator may recommend that Congress ‘‘(h)’’. asbestos exposure, and for other pur- create additional tiers, appropriate criteria, On page 116, between lines 23 and 24, insert poses; which was ordered to lie on the and claims values. the following: table; as follows: (f) INSTITUTE OF MEDICINE STUDY ON LUNG On page 109, strike line 13 and all that fol- SA 2772. Mr. COBURN submitted an CANCER.— lows through page 112, line 14. amendment intended to be proposed by (1) STUDY ON LUNG CANCER.—Not later than On page 116, strike lines 1 through 23, and him to the bill S. 852, to create a fair llllllllllll, 2006, the Institute of insert the following: Medicine of the National Academy of and efficient system to resolve claims (e) INSTITUTE OF MEDICINE STUDIES.— of victims for bodily injury caused by Sciences shall complete a study contracted (1) STUDY ON OTHER CANCERS.—Not later with the National Institutes of Health to de- than llllllllllll, 2006, the Insti- asbestos exposure, and for other pur- termine whether there is a causal link be- tute of Medicine of the National Academy of poses; which was ordered to lie on the tween asbestos exposure and lung cancer Sciences shall complete a study contracted table; as follows: where there is evidence of bilateral pleural with the National Institutes of Health to de- On page 126, between lines 6 and 7, insert plaques or bilateral pleural thickening or bi- termine whether there is a causal link be- the following: lateral pleural calcification, but no asbes- tween asbestos exposure and other cancers, (i) GUIDELINES FOR CT SCANS.— tosis. including colorectal, laryngeal, esophageal, (1) IN GENERAL.—Not later than (2) STUDY CRITERIA.—In conducting the pharyngeal, and stomach cancers, except for llllllllllll, 2006, the Adminis- study required under paragraph (1), the Insti- mesothelioma and lung cancers. trator shall commission the American Col- tute of Medicine— (2) STUDY ON LUNG CANCER.—Not later than lege of Radiology to develop standard guide- (A) shall— llllllllllll, 2006, the Institute of lines and a methodology for the use of CT

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00050 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1185 scans as a diagnostic tool for asbestosis, bi- of victims for bodily injury caused by (A) shall— lateral pleural plaques, bilateral pleural asbestos exposure, and for other pur- (i) base any evaluation completed during thickening, or bilateral pleural calcification poses; which was ordered to lie on the the course of the study only on multicen- under the Fund. table; as follows: tered, double masked, placebo controlled, (2) LIMITATION ON USE OF CT SCANS.—No CT randomized clinical trials with explicit data scans may be used for diagnostic purposes On page 111, line 3, strike all through page safety and monitoring boards incorporated under the Fund unless the standard guide- 112, line 14. into the data acquisition process of any such lines and methodology developed by the evaluation; American College of Radiology under para- SA 2779. Mr. COBURN submitted an (ii) if the clinical trials described in clause graph (1) are followed. amendment intended to be proposed by (i) are not available, base any evaluation him to the bill S. 852, to create a fair completed during the course of the study SA 2773. Mr. COBURN submitted an and efficient system to resolve claims only on single centered, masked, nonrandom- amendment intended to be proposed by of victims for bodily injury caused by ized clinical trials; or him to the bill S. 852, to create a fair asbestos exposure, and for other pur- (iii) if the clinical trials described in and efficient system to resolve claims poses; which was ordered to lie on the clauses (i) or (ii) are not available, employ of victims for bodily injury caused by meta–analysis of all available studies; table; as follows: (B) may not consider any studies that did asbestos exposure, and for other pur- On page 109, strike line 13 and all that fol- not take out confounding variables; and poses; which was ordered to lie on the lows through page 112, line 14. (C) shall reference any other study used to table; as follows: reach the conclusions reported by the Insti- On page 105, line 14, strike ‘‘or’’ and insert SA 2780. Mr. COBURN submitted an tute. ‘‘and’’. amendment intended to be proposed by (3) REPORT.— him to the bill S. 852, to create a fair (A) IN GENERAL.—The Institute of Medicine SA 2774. Mr. COBURN submitted an and efficient system to resolve claims shall issue a report on its findings on the use amendment intended to be proposed by of victims for bodily injury caused by of CT scans, such report shall be transmitted him to the bill S. 852, to create a fair asbestos exposure, and for other pur- to Congress, the Administrator, the Advisory Committee on Asbestos Disease Compensa- and efficient system to resolve claims poses; which was ordered to lie on the of victims for bodily injury caused by tion or the Medical Advisory Committee, and table; as follows: the Physicians Panels. asbestos exposure, and for other pur- On page 92, strike lines 1 through 6. (B) EFFECT OF REPORT IF STUDY NOT BASED poses; which was ordered to lie on the On page 108, line 18, insert ‘‘or’’ after the ON APPROPRIATE CRITERIA.—Any finding of table; as follows: semicolon. the Institute of Medicine contained in a re- On page 106, line 8, strike all after ‘‘pathol- On page 108, strike lines 19 through 21. port required under subparagraph (A) that is ogy’’ through line 10 and insert ‘‘with a Col- On page 108, strike ‘‘(iii)’’ and insert ‘‘(ii)’’. not based on a study conducted in accord- lege of American Pathologists National In- ance with the requirements described in stitute for Occupational Safety and Health SA 2781. Mr. COBURN submitted an paragraph (2) shall— level of 3 or 4;’’. amendment intended to be proposed by (i) be deemed to be insufficient to show On page 106, line 14, strike all after ‘‘per- him to the bill S. 852, to create a fair that it is appropriate to use CT scans as a di- cent’’ through ‘‘spirometry’’ on line 18. and efficient system to resolve claims agnostic tool for asbestosis, bilateral pleural of victims for bodily injury caused by plaques, bilateral pleural thickening, or bi- SA 2775. Mr. COBURN submitted an lateral pleural calcification; and amendment intended to be proposed by asbestos exposure, and for other pur- (ii) not be used for diagnostic purposes him to the bill S. 852, to create a fair poses; which was ordered to lie on the under— and efficient system to resolve claims table; as follows: (I) paragraphs (7) or (8) of subsection (d); or of victims for bodily injury caused by On page 113, line 16, insert ‘‘or’’ after the (II) subsection (g). (C) EFFECT OF REPORT IF STUDY IS BASED ON asbestos exposure, and for other pur- semicolon. On page 113, line 19, insert ‘‘and’’ after the APPROPRIATE CRITERIA.— poses; which was ordered to lie on the semicolon. (i) IN GENERAL.—If a report required under table; as follows: On page 113, line 20, strike all through page subparagraph (A) is based on a study con- On page 107, line 13, strike all beginning 114, line 2. ducted in accordance with the requirements with the comma through ‘‘greater’’ on line On page 120, strike lines 10 through 11 and described in paragraph (2), such report shall 15. insert the following: be binding on the Administrator and Physi- (D) X-RAY.—A claimant may submit an x- cians Panels for purposes of determining SA 2776. Mr. COBURN submitted an ray. whether a CT scan is an appropriate test to amendment intended to be proposed by use for diagnostic purposes under— him to the bill S. 852, to create a fair SA 2782. Mr. COBURN submitted an (I) paragraphs (7) or (8) of subsection (d); or and efficient system to resolve claims amendment intended to be proposed by (II) subsection (g). of victims for bodily injury caused by him to the bill S. 852, to create a fair (ii) DETERMINATION AS AN APPROPRIATE and efficient system to resolve claims TEST.—If a CT scan is determined to be an asbestos exposure, and for other pur- appropriate test, the Administrator may ac- poses; which was ordered to lie on the of victims for bodily injury caused by knowledge CT scans as appropriate for diag- table; as follows: asbestos exposure, and for other pur- nostic purposes under— On page 108, line 13, strike all beginning poses; which was ordered to lie on the (I) paragraphs (7) or (8) of subsection (d); or with the comma through ‘‘greater’’ on line table; as follows: (II) subsection (g). 15. On page 113, line 16, insert ‘‘or’’ after the On page 120, strike lines 10 through 11, and On page 108, line 18, insert ‘‘or’’ after the semicolon. insert the following: semicolon. On page 113, lines 19 and 20, strike ‘‘; or’’ (D) X-RAY.—A claimant may submit an x- On page 108, strike lines 19 through 21. and insert ‘‘; and’’. ray. On page 108, line 22, strike ‘‘(iii)’’ and in- On page 113, strike line 21 and all that fol- SA 2783. Mr. COBURN submitted an sert ‘‘(ii)’’. lows through page 114, line 2. On page 116, strike line 24 and all that fol- amendment intended to be proposed by SA 2777. Mr. COBURN submitted an lows through page 118, line 6, and insert the him to the bill S. 852, to create a fair amendment intended to be proposed by following: and efficient system to resolve claims him to the bill S. 852, to create a fair (f) INSTITUTE OF MEDICINE STUDY ON CT of victims for bodily injury caused by and efficient system to resolve claims SCANS.— asbestos exposure, and for other pur- of victims for bodily injury caused by (1) STUDY ON THE USE OF CT SCANS.—Not poses; which was ordered to lie on the asbestos exposure, and for other pur- later than llllllllllll, 2006, the table; as follows: poses; which was ordered to lie on the Institute of Medicine of the National Acad- On page 111, strike lines 12 through 14 and table; as follows: emy of Sciences shall complete a study con- insert a semicolon. tracted with the National Institutes of On page 111, line 17, strike ‘‘and’’. On page 109, line 13, strike all through page Health on the use of CT scans as a diagnostic On page 111, line 24, strike the period and 111, line 2. tool for asbestosis, bilateral pleural plaques, insert ‘‘; and’’. bilateral pleural thickening, or bilateral On page 111, add after line 24 the following: SA 2778. Mr. COBURN submitted an pleural calcification. (v) evidence of TLC less than 80 percent, amendment intended to be proposed by (2) STUDY CRITERIA.—In conducting the and FVC less than the lower limits of normal him to the bill S. 852, to create a fair study required under paragraph (1), the Insti- and FEV1/FVC ratio greater than or equal to and efficient system to resolve claims tute of Medicine— 65 percent.

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00051 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1186 CONGRESSIONAL RECORD — SENATE February 14, 2006 On page 114, line 2, strike ‘‘and’’. Physicians Panels for purposes of deter- (II) subsection (g). On page 114, line 11, strike the period and mining whether asbestos exposure is a sub- insert ‘‘; and’’. stantial contributing factor under subsection SA 2785. Mr. COBURN submitted an On page 114, between lines 11 and 12 insert (d)(6)(B). amendment intended to be proposed by the following: (ii) AFFECT ON MALIGNANT LEVEL VI.—If the him to the bill S. 852, to create a fair (iv) evidence of TLC less than 80 percent, report required under subparagraph (A) de- and FVC less than the lower limits of normal and efficient system to resolve claims termines that asbestos exposure is not a sub- of victims for bodily injury caused by and FEV1/FVC ratio greater than or equal to stantial contributing factor under subsection 65 percent. (d)(6), such subsection shall cease to have asbestos exposure, and for other pur- force or effect for any purpose under this poses; which was ordered to lie on the SA 2784. Mr. COBURN submitted an Act. table; as follows: amendment intended to be proposed by (f) INSTITUTE OF MEDICINE STUDY ON CT On page 91, line 6, strike ‘‘1⁄0’’ and insert CANS him to the bill S. 852, to create a fair S .— ‘‘1⁄1’’. and efficient system to resolve claims (1) STUDY ON THE USE OF CT SCANS.—Not On page 106, line 4, strike ‘‘1⁄0’’ and insert of victims for bodily injury caused by later than llllllllllll, 2006, the ‘‘1⁄1’’. asbestos exposure, and for other pur- Institute of Medicine of the National Acad- On page 112, line 24, strike ‘‘1⁄0’’ and insert emy of Sciences shall complete a study con- 1 poses; which was ordered to lie on the ‘‘ ⁄1’’. tracted with the National Institutes of table; as follows: Health on the use of CT scans as a diagnostic SA 2786. Mr. COBURN submitted an On page 116, strike line 1 and all that fol- tool for asbestosis, bilateral pleural plaques, lows through page 118, line 6, and insert the amendment intended to be proposed by bilateral pleural thickening, or bilateral him to the bill S. 852, to create a fair following: pleural calcification. (e) INSTITUTE OF MEDICINE STUDY.— (2) STUDY CRITERIA.—In conducting the and efficient system to resolve claims (1) STUDY ON OTHER CANCERS.—Not later study required under paragraph (1), the Insti- of victims for bodily injury caused by than llllllllllll, 2006, the Insti- tute of Medicine— asbestos exposure, and for other pur- tute of Medicine of the National Academy of (A) shall— poses; which was ordered to lie on the Sciences shall complete a study contracted (i) base any evaluation completed during table; as follows: with the National Institutes of Health to de- the course of the study only on multicen- On page 87, after line 25, add the following: termine whether there is a causal link be- tered, double masked, placebo controlled, tween asbestos exposure and other cancers, (5) Any B-reader who has received com- randomized clinical trials with explicit data pensation before the date of enactment of including colorectal, laryngeal, esophageal, safety and monitoring boards incorporated pharyngeal, and stomach cancers, except for this Act for assigning an ILO grade level to into the data acquisition process of any such an x-ray, where the amount of compensation mesothelioma and lung cancers. evaluation; depended on the assigned ILO grade level, is (2) STUDY CRITERIA.—In conducting the (ii) if the clinical trials described in clause disqualified from inclusion on the Adminis- study required under paragraph (1), the Insti- (i) are not available, base any evaluation trator’s list. tute of Medicine— completed during the course of the study (A) shall— only on single centered, masked, nonrandom- SA 2787. Mr. CORNYN submitted an (i) base any evaluation completed during ized clinical trials; or the course of the study only on multicen- (iii) if the clinical trials described in amendment intended to be proposed to tered, double masked, placebo controlled, clauses (i) or (ii) are not available, employ amendment SA 2746 proposed by Mr. randomized clinical trials with explicit data meta–analysis of all available studies; FRIST (for Mr. SPECTER (for himself and safety and monitoring boards incorporated (B) may not consider any studies that did Mr. LEAHY)) to the bill S. 852, to create into the data acquisition process of any such not take out confounding variables; and a fair and efficient system to resolve evaluation; (C) shall reference any other study used to claims of victims for bodily injury (ii) if the clinical trials described in clause reach the conclusions reported by the Insti- caused by asbestos exposure, and for (i) are not available, base any evaluation tute. other purposes; which was ordered to completed during the course of the study (3) REPORT.— only on single centered, masked, nonrandom- (A) IN GENERAL.—The Institute of Medicine lie on the table; as follows: ized clinical trials; or shall issue a report on its findings on the use On page 181, between lines 21 and 22, insert (iii) if the clinical trials described in of CT scans, such report shall be transmitted the following: clauses (i) or (ii) are not available, employ to Congress, the Administrator, the Advisory (4) LIMITATION ON PAYMENTS BY DEFENDANT meta–analysis of all available studies; Committee on Asbestos Disease Compensa- PARTICIPANTS.— (B) may not consider any studies that did tion or the Medical Advisory Committee, and (A) IN GENERAL.—Under expedited proce- not take out confounding variables; and the Physicians Panels. dures established by the Administrator, any (C) shall reference any other study used to (B) EFFECT OF REPORT IF STUDY NOT BASED defendant participant may apply for a limi- reach the conclusions reported by the Insti- ON APPROPRIATE CRITERIA.—Any finding of tation on its annual payment obligation to tute. the Institute of Medicine contained in a re- the Fund by showing that it qualifies under (3) REPORT.— port required under subparagraph (A) that is subparagraph (C). The Administrator shall (A) IN GENERAL.—The Institute of Medicine not based on a study conducted in accord- promptly grant that application if the re- shall issue a report on its findings on causa- ance with the requirements described in quirements under subparagraph (C) are satis- tion, which shall be transmitted to Congress, paragraph (2) shall— fied. the Administrator, the Advisory Committee (i) be deemed to be insufficient to show (B) STAY OF PAYMENT.—A defendant partic- on Asbestos Disease Compensation or the that it is appropriate to use CT scans as a di- ipant who applies for a limitation on its an- Medical Advisory Committee, and the Physi- agnostic tool for asbestosis, bilateral pleural nual payment obligation to the Fund under cians Panels. plaques, bilateral pleural thickening, or bi- subparagraph (A) shall have the payment re- (B) EFFECT OF REPORT IF STUDY NOT BASED lateral pleural calcification; and quired under subsection (i)(1)(A)(iv) stayed ON APPROPRIATE CRITERIA.— (ii) not be used for diagnostic purposes until the Administrator has made a deter- (i) IN GENERAL.—Any finding of the Insti- under— mination with respect to the application of tute of Medicine contained in the report re- (I) paragraphs (7) or (8) of subsection (d); or that defendant participant. quired under subparagraph (A) that is not (II) subsection (g). (C) APPLICATION FOR LIMITATION.—A de- based on a study conducted in accordance (C) EFFECT OF REPORT IF STUDY IS BASED ON fendant participant may apply under sub- with the requirements described in para- APPROPRIATE CRITERIA.— paragraph (A) for a limit on its annual pay- graph (2) shall be deemed to be insufficient (i) IN GENERAL.—If a report required under ment obligation to the Fund if that defend- to show causation. subparagraph (A) is based on a study con- ant participant— (ii) AFFECT ON MALIGNANT LEVEL VI .—If the ducted in accordance with the requirements (i) is included in Tiers II, III, IV, V, or VI report required under subparagraph (A) is described in paragraph (2), such report shall under section 202; and not based on a study conducted in accord- be binding on the Administrator and Physi- (ii) has prior asbestos expenditures less ance with the requirements described in cians Panels for purposes of determining than $200,000,000 and has revenues as deter- paragraph (2), subsection (d)(6) shall cease to whether a CT scan is an appropriate test to mined under section 203 that are less than have force or effect for any purpose under use for diagnostic purposes under— $10,000,000,000. this Act. (I) paragraphs (7) or (8) of subsection (d); or (D) LIMITATION.— (C) EFFECT OF REPORT IF STUDY IS BASED ON (II) subsection (g). (i) IN GENERAL.—A defendant participant APPROPRIATE CRITERIA.— (ii) DETERMINATION AS AN APPROPRIATE that qualifies for a limitation under this (i) IN GENERAL.—If the report required TEST.—If a CT scan is determined to be an paragraph may apply for only 1 of the limits under subparagraph (A) is based on a study appropriate test, the Administrator may ac- under subclause (I), (II), or (III) of clause (ii). conducted in accordance with the require- knowledge CT scans as appropriate for diag- A defendant participant may not change its ments described in paragraph (2), such report nostic purposes under— application once the application has been ap- shall be binding on the Administrator and (I) paragraphs (7) or (8) of subsection (d); or proved by the Administrator.

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(ii) APPLICATION FOR 1 LIMITATION.—Subject often have long latency periods and past ex- paired claimants, and to safeguard the jobs, to clause (i), a defendant participant may posures will continue to result in significant benefits, and savings of workers in affected apply for a limit of an amount equal to— claims well into the future. companies. (I) 125 percent of the arithmetical average (5) Asbestos related claims, driven largely (18) Claimant consolidations, joinders, and for fiscal years 1998 through 2002 of the an- by unimpaired claimants, have flooded our similar procedures used by some courts to nual prior asbestos expenditures of that de- courts such that the United States Supreme deal with the mass of asbestos and silica fendant participant; Court has characterized the situation as ‘‘an cases can— (II) 150 percent of the arithmetical average elephantine mass’’ that ‘‘calls for national (A) undermine the appropriate functioning for fiscal years 1998 through 2002 of the an- legislation’’ (Ortiz v. Fibreboard Corpora- of the court system; nual prior asbestos expenditures of that de- tion, 119 S. Ct. 2295, 2302 (1999). (B) deny due process to plaintiffs and de- fendant participant, excluding— (6) The American Bar Association supports fendants; and (aa) the amount of any payments by insur- enactment of Federal legislation that would (C) further encourage the filing of thou- ance carriers for the benefit of that defend- allow persons alleging non-malignant asbes- sands of cases by exposed persons who are ant participant or on behalf of that defend- tos-related disease claims to file a cause of not sick and likely will never develop an im- ant participant; and action in Federal or State court only if those pairing condition caused by exposure to as- (bb) any reimbursements of the amounts persons meet the medical criteria in the bestos or silica. actually paid by that defendant participant ‘‘ABA Standard for Non-Malignant Asbestos- (19) Several states have enacted legislation with respect to prior asbestos expenditures Related Disease Claims’’ and toll all applica- to prioritize asbestos and silica claims that for fiscal years 1998 through 2002, regardless ble statutes of limitations until such time as serve as a model for national reform includ- of when such reimbursements were actually the medical criteria in such standard are ing Texas, Ohio, Florida, and Georgia. paid; or met. (20) Asbestos litigation, if left unchecked (III) 1.67024 percent of the revenues for the (7) Reports indicate that up to 90 percent by reasonable congressional intervention, most recent fiscal year ending on or prior to of asbestos claims are filed by individuals will— December 31, 2002, of the affiliated group to who allege that they have been exposed to (A) continue to inhibit the national econ- which that defendant participant belongs. asbestos, but who suffer no demonstrable as- omy and run counter to plans to stimulate (E) JUDICIAL REVIEW.—A defendant partici- bestos-related impairment. Lawyer-spon- economic growth and the creation of jobs; pant is entitled to judicial review under sec- sored x-ray screenings of workers at occupa- (B) threaten the savings, retirement bene- tion 303 of a denial of an application under tional locations are used to amass large fits, and employment of defendant’s current this paragraph. During the pendency of that numbers of claimants, the vast majority of and retired employees; review, section 223(a) shall not apply to that whom are unimpaired. (C) affect adversely the communities in defendant participant. Without regard to (8) The costs of compensating unimpaired which these defendants operate; and section 305(a), the reviewing court may, in claimants and litigating their claims jeop- (D) impair interstate commerce and na- its discretion, provide such interlocutory re- ardizes the ability of defendants to com- tional initiatives. lief to the defendant participant as may be pensate people with cancer and other serious (21) The public interest and the interest of just. diseases, threatens the savings, retirement interstate commerce requires deferring the benefits, and jobs of current and retired em- claims of exposed persons who are not sick in (F) APPLICABILITY OF THE GUARANTEE SUR- ployees, and adversely affects the commu- order to— CHARGE.—A defendant participant whose ap- nities in which the defendants operate. (A) preserve, now and for the future, de- plication under this paragraph is approved (9) More than 73 companies have declared fendants’ ability to compensate people who by the Administrator, shall not be exempt bankruptcy due to the burden of asbestos develop cancer and other serious asbestos-re- from the guaranteed payment surcharge es- litigation. The rate of asbestos-driven bank- lated injuries; and tablished under subsection (l), unless other- ruptcies is accelerating. Between 2000 and (B) safeguard the jobs, benefits, and sav- wise provided in this Act. 2004, there were more asbestos-related bank- ings of American workers and the well-being (G) MINIMUM PAYMENT.—Notwithstanding ruptcy filings than in either of the prior 2 of the national economy. any other provision of this paragraph, a de- decades. (b) PURPOSES.—The purposes of this Act fendant participant that is granted a limita- (10) Bankruptcies have led plaintiffs and are to— tion by the Administrator shall pay not less their lawyers to expand their search for sol- (1) give priority to current claimants who than 5 percent of the amount the participant vent peripheral defendants. The number of can demonstrate an asbestos-related or sili- is scheduled to pay under section 202. asbestos defendants now includes over 8,500 ca-related impairment based on reasonable, On page 182, line 15, strike ‘‘(5)’’ and insert companies, affecting many small and me- objective medical criteria; ‘‘(6)’’. dium size companies and industries that (2) toll the running of statutes of limita- On page 184, line 9, strike ‘‘(6)’’ and insert span 85 percent of the United States econ- tions for persons who have been exposed to ‘‘(7)’’. omy. asbestos or to silica, but who have no present asbestos-related or silica-related impair- Mr. CORNYN submitted an (11) Efforts to address asbestos litigation SA 2788. may augment silica-related filings. ment; and amendment intended to be proposed to (12) Silica is a naturally occurring mineral (3) enhance the ability of the courts to su- amendment SA 2746 proposed by Mr. and is the second most common constituent pervise and control asbestos and silica litiga- FRIST (for Mr. SPECTER (for himself and of the earth’s crust. Crystalline silica in the tion. Mr. LEAHY)) to the bill S. 852, to create form of quartz is present in sand, gravel, SEC. 3. DEFINITIONS. a fair and efficient system to resolve soil, and rocks. In this Act, the following definitions shall claims of victims for bodily injury (13) Silica-related illness, including sili- apply: caused by asbestos exposure, and for cosis can develop from the inhalation of res- (1) AMA GUIDES TO THE EVALUATION OF PER- pirable silica dust. Silicosis was widely rec- MANENT IMPAIRMENT.—The term ‘‘AMA other purposes; which was ordered to ognized as an occupational disease many Guides to the Evaluation of Permanent Im- lie on the table; as follows: years ago. pairment’’ means the most current version Strike all after ‘‘SECTION 1. SHORT (14) Silica claims, like asbestos claims, of the American Medical Association’s TITLE;’’ in the bill and insert the following: often involve individuals with no demon- Guides to the Evaluation of Permanent Im- This Act may be cited as the ‘‘Asbestos and strable impairment. Claimants frequently pairment in effect at the time of the per- Silica Claims Priorities Act’’. are identified through the use of interstate, formance of any examination or test on the SEC. 2. FINDINGS AND PURPOSES. for-profit, screening companies. exposed person required by this Act. (a) FINDINGS.—Congress finds the fol- (15) Silica screening processes have been (2) ASBESTOS.—The term ‘‘‘asbestos’’’ lowing: found subject to substantial abuse and po- means— (1) Asbestos is a mineral that was widely tential fraud in Federal silica litigation (In (A) chrysotile; used before the mid-1970s for insulation, fire- re Silica Prods. Liab. Litig. (MDL No. 1553), (B) amosite; proofing, and other purposes. 398 F. Supp. 2d 563 (S.D. Tex. 2005)) and it (C) crocidolite (2) Many American workers were exposed therefore is necessary to address silica legis- (D) tremolite asbestos; to asbestos, especially during the Second lation to preempt an asbestos-like litigation (E) anthophyllite asbestos; World War. crisis. (F) actinolite asbestos; (3) Long-term exposure to asbestos has (16) Concerns about statutes of limitations (G) winchite; been associated with mesothelioma and lung may prompt unimpaired asbestos and silica (H) richterite; cancer, as well as with such non-malignant claimants to bring lawsuits prematurely to (I) asbestiform amphibole minerals; and conditions as asbestosis, pleural plaques, and protect against losing their ability to assert (J) any of the minerals described in sub- diffuse pleural thickening. a claim in the future should they develop an paragraphs (A) through (I) that have been (4) Although the use of asbestos has dra- impairing condition. chemically treated or altered, including all matically declined since 1980 and workplace (17) Sound public policy requires that the minerals defined as asbestos under section exposures have been regulated since 1971 by claims of persons with no present physical 1910 of title 29, Code of Federal Regulations the Occupational Safety and Health Admin- impairment from asbestos or silica exposure, in effect at the time an asbestos claim is istration, the diseases caused by asbestos be deferred to give priority to physically im- filed.

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(3) ASBESTOS CLAIM.—The term ‘‘asbestos pretation sponsored by the National Insti- time of the physical examination or, in the claim’’— tute for Occupational Safety and Health; and case of a board–certified pathologist, has ex- (A) means any claim for damages, losses, (B) whose certification was current at the amined tissue samples or pathological slides indemnification, contribution, or other relief time of any readings required under this Act. of the exposed person at the request of such of whatever nature arising out of, based on, (10) CHEST X-RAYS.—The term ‘‘chest x- treating physician; and or related to the alleged health effects asso- rays’’ means radiographic films taken in ac- (D) whose diagnosing, examining, testing, ciated with the inhalation or ingestion of as- cordance with all applicable Federal and screening or treating of the exposed person bestos, including— State standards and in the posterior-anterior was not, directly or indirectly, premised (i) loss of consortium; view. upon, and did not require, the exposed person (ii) personal injury or death; (11) CLAIMANT.— or claimant to retain the legal services of (iii) mental or emotional injury; (A) IN GENERAL.—The term ‘‘claimant’’ any attorney or law firm. (iv) risk or fear of disease or other injury; means any party asserting an asbestos or (19) SILICA.—The term ‘‘silica’’ a respirable (v) the costs of medical monitoring or sur- silica claim, including a— crystalline form of the naturally occurring veillance, to the extent such claims are rec- (i) plaintiff; mineral form of silicon dioxide, including ognized under State law; or (ii) counterclaimant; quartz, cristobalite, and tridymite. (vi) any claim made by, or on behalf of, (iii) cross-claimant; or (20) SILICA CLAIM.—The term ‘‘silica any person exposed to asbestos, or a rep- (iv) third-party plaintiff. claim’’— resentative, spouse, parent, child, or other (B) CLAIMS ON BEHALF OF AN ESTATE.—If (A) means any claim for damages, losses, relative of the exposed person; and any claim described in subparagraph (A) is indemnification, contribution, or other relief (B) does not include a claim for compen- brought through, or on behalf of, an estate, of whatever nature arising out of, based on, satory benefits pursuant to a workers’ com- the term claimant includes the executor, or in any way related to the alleged health pensation law or a veterans’ benefits pro- surviving spouse, or any other descendant of effects associated with the inhalation of sili- gram. the decedent. ca, including— (4) ASBESTOSIS.—The term ‘‘asbestosis’’ (C) CLAIMS ON BEHALF OF A MINOR.—If any (i) loss of consortium; means bilateral diffuse interstitial fibrosis of claim described in subparagraph (A) is (ii) personal injury or death; the lungs caused by inhalation of asbestos. brought through, or on behalf of, a minor or (iii) mental or emotional injury; (5) BOARD-CERTIFIED INTERNIST.—The term incompetent person, the term claimant in- ‘‘Board-certified internist’’ means a qualified cludes the parent or guardian of such minor. (iv) risk or fear of disease or other injury; physician— (12) DLCO.—The term ‘‘DLCO’’ means dif- (v) the costs of medical monitoring or sur- (A) who is certified by the American Board fusing capacity of the lung for carbon mon- veillance, to the extent such claims are rec- of Internal Medicine or the American Osteo- oxide, which is the measurement of carbon ognized under State law; or pathic Board of Internal Medicine; and monoxide transfer from inspired gas to pul- (vi) any claim made by, or on behalf of, (B) whose certification was current at the monary capillary blood. any person exposed to silica dust, or a rep- time of— (13) EXPOSED PERSON.— resentative, spouse, parent, child, or other (i) the performance of any examination; (A) IN GENERAL.—The term ‘‘exposed per- relative of the exposed person; and and son’’ means a person whose claimed exposure (B) does not include a claim for compen- (ii) rendition of any report required under to asbestos or silica is the basis for an asbes- satory benefits pursuant to the workers’ this Act. tos or silica claim. compensation law or a veterans’ benefits (6) BOARD-CERTIFIED OCCUPATIONAL MEDI- (B) SILICA CLAIMS.—With respect to any program. CINE SPECIALIST.—The term ‘‘Board-certified claim for exposure to silica, the term ‘‘ex- (21) SILICOSIS.—The term ‘‘silicosis’’ means occupational medicine specialist’’ means a posed person’’ means a person whose claimed fibrosis of the lung produced by inhalation of physician— exposure to silica is by means of the alleged silica, including— (A) who is certified in the subspecialty of inhalation of respirable silica. (A) acute silicosis; occupational medicine by the American (14) FEV–1.—The term ‘‘FEV–1’’ means (B) accelerated silicosis; and Board of Preventive Medicine or the Amer- forced expiratory volume in the first second, (C) chronic silicosis. ican Osteopathic Board of Preventive Medi- which is the maximal volume of air expelled (22) STATE.—The term ‘‘State’’— cine; and in 1 second during performance of simple spi- (A) means any State of the United States; (B) whose certification was current at the rometric tests. and time of— (15) FVC.—The term ‘‘FVC’’ means forced (B) includes— (i) the performance of any examination; vital capacity, which is the maximal volume (i) the District of Columbia; and of air expired with maximum effort from a (ii) Commonwealth of Puerto Rico; (ii) rendition of any report required under position of full inspiration. (iii) the Northern Mariana Islands; this Act. (16) ILO SCALE.—The term ‘‘ILO scale’’ (iv) the Virgin Islands; (7) BOARD-CERTIFIED PATHOLOGIST.—The means the system for the classification of (v) Guam; term ‘‘Board-certified pathologist’’ means a chest x-rays set forth in the most current (vi) American Samoa; and qualified physician— version of the International Labor Office’s (vii) any other territory or possession of (A) who holds primary certification in ana- Guidelines for the Use of ILO International the United States, or any political subdivi- tomic pathology or combined anatomic or Classification of Radiographs of sion of any of the locales described under clinical pathology from the American Board Pneumoconioses in effect at the time of the this paragraph. of Pathology or the American Osteopathic performance of any examination or test on (23) SUBSTANTIAL CONTRIBUTING FACTOR.— Board of Internal Medicine; the exposed person required by this Act. The term ‘‘substantial contributing fac- (B) whose professional practice is prin- (17) PREDICTED LOWER LIMIT OF NORMAL.— tor’’— cipally in the field of pathology and involves The term ‘‘predicted lower limit of normal’’ (A) in the context of an asbestos claim, regular evaluation of pathology materials means the calculated standard convention means that— obtained from surgical or post mortem speci- lying at the fifth percentile, below the upper (i) a claimant shall identify— mens; and 95 percent of the reference population, based (I) the specific asbestos product to which (C) whose certification was current at the on age, height, and gender, according to the the exposed person was exposed; time of— recommendations of the American Thoracic (II) the location and duration of such expo- (i) any tissue or slide examination; or Society as referenced in the AMA’s Guides to sure; and (ii) rendition of any report required under the Evaluation of Permanent Impairment. (III) the specific circumstances of such ex- this Act. (18) QUALIFIED PHYSICIAN.—The term posure; (8) BOARD-CERTIFIED PULMONOLOGIST.—The ‘‘qualified physician’’ means a board-cer- (ii) such exposure— term ‘‘Board-certified pulmonologist’’ means tified internist, occupational medicine spe- (I) was more than incidental contact with a qualified physician— cialist, pathologist, or pulmonologist— the product and location; and (A) who is certified in the subspecialty of (A) who is licensed to practice in any (II) took place on a regular basis over an pulmonary medicine by the American Board State; extended period of time in physical prox- of Internal Medicine or the American Osteo- (B) who has personally conducted a phys- imity to the exposed person; pathic Board of Internal Medicine; and ical examination of the exposed person, or in (iii) the exposed person inhaled respirable (B) whose certification was current at the the case of a board-certified pathologist, has asbestos fibers in sufficient quantities to be time of— examined tissue samples or pathological capable of causing harm; and (i) the performance of any examination; slides of the exposed person, or if the exposed (iv) a qualified physician has determined and person is deceased, based upon a detailed re- with a reasonable degree of medical cer- (ii) rendition of any report required under view of the medical records and existing tis- tainty that the impairment of the exposed this Act. sue samples and pathological slides of the person would not have occurred but for the (9) CERTIFIED B-READER.—The term ‘‘Cer- deceased person; specific asbestos exposure; and tified B-reader’’ means a person— (C) who is treating or has treated the ex- (B) in the context of a silica claim, means (A) who has successfully passed the B-read- posed person, and has or had a doctor-patient that— er certification examination for x-ray inter- relationship with the exposed person at the (i) a claimant shall identify—

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00054 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1189 (I) the specific silica product to which the the commencement of trial, whichever oc- (i) all of the exposed person’s places of em- exposed person was exposed; curs first. ployment and exposure to airborne contami- (II) the location and duration of such expo- (3) DEFENDANTS RIGHT TO CHALLENGE.—A nants (including asbestos, silica, and other sure; and defendant shall be afforded a reasonable op- disease-causing dusts, mists, fumes, and air- (III) the specific circumstances of such ex- portunity to challenge the adequacy of any borne contaminants) that can cause pul- posure; proffered prima facie evidence of impair- monary impairment; and (ii) such exposure— ment. (ii) the nature, duration, and level of each (I) was more than incidental contact with (4) DISMISSAL.—A claim shall be dismissed such exposure. the product and location; and without prejudice upon a finding of failure to (B) Evidence— (II) took place on a regular basis over an make the prima facie showing required under (i) verifying that the diagnosing, qualified extended period of time in physical prox- this section. physician has taken a detailed medical and imity to the exposed person; (c) NEW CLAIM REQUIRED INFORMATION.— smoking history, including a thorough re- (iii) the exposed person inhaled respirable (1) IN GENERAL.—Any asbestos claim or sili- view of— silica particles in sufficient quantities to be ca claim filed in a Federal or State court, on (I) the exposed person’s past and present capable of causing harm; and or after on the date of enactment of this Act medical problems; and (iv) a qualified physician has determined shall include a sworn information form con- (II) the most probable cause of each such with a reasonable degree of medical cer- taining the following information: medical problem; or tainty that the impairment of the exposed (A) The name, address, date of birth, social (ii) if the exposed person is deceased, from person would not have occurred but for the security number, and marital status of the a person who is knowledgeable regarding specific silica exposure. claimant. such exposed person’s medical and smoking (24) TOTAL LUNG CAPACITY.—The term (B) The name, last address, date of birth, history. ‘‘total lung capacity’’ means the volume of social security number, and marital status of (C) Evidence sufficient to demonstrate— gas contained in the lungs at the end of a the exposed person. (i) that at least 10 years have elapsed since maximal inspiration. (C) If the claimant alleges exposure to as- the exposed person’s first exposure to asbes- bestos or silica through the testimony of an- (25) VETERANS’ BENEFITS PROGRAM.—The tos; and term ‘‘veterans’ benefits program’’ means other person or other than by direct or by- (ii) the date of any such diagnosis. any program for benefits in connection with stander exposure to a product or products, (D) A determination by the diagnosing, military service administered by the Vet- the name, address, date of birth, social secu- qualified physician, on the basis of a medical erans’ Administration under title 38, United rity number, and marital status, for each examination and pulmonary function testing person by which claimant alleges exposure States Code. of the exposed person, or if the exposed per- (hereafter in this subsection referred to as son is deceased, based upon the medical (26) WORKERS’ COMPENSATION LAW.—The the ‘‘index person’’) and the relationship of term ‘‘workers’ compensation law’’— records of the deceased, that the claimant the claimant to each such person. (A) means a law respecting a program ad- has, or if deceased, that the claimant had a (D) For each alleged exposure of the ex- ministered by a State or the United States permanent respiratory impairment rating of posed person and for each index person— to provide benefits, funded by a responsible at least Class 2 as defined by, and evaluated (i) the specific location and manner of each employer or its insurance carrier, for occu- under, the AMA’s Guides to the Evaluation such exposure; of Permanent Impairment. pational diseases or injuries or for disability (ii) the beginning and ending dates of each (E) Evidence verifying that the exposed or death caused by occupational diseases or such exposure; and person has an ILO quality 1 chest x-ray (or a injuries; (iii) the identity of the manufacturer of quality 2 chest x-ray if the exposed person is (B) includes the Longshore and Harbor the specific asbestos or silica to which the deceased and a quality 1 chest x-ray does not Workers’ Compensation Act (33 U.S.C. 901 et exposed person or index person was exposed. exist) read by a certified B-reader as show- seq.) and chapter 81 of title 5, United States (E) The occupation and name of the em- ing, according to the ILO scale— Code; and ployer of the exposed person at the time of (i) bilateral small irregular opacities (s, t, (C) does not include— each alleged exposure. or u) graded 1/0 or higher on the ILO scale; (i) the Act of April 22, 1908 (45 U.S.C. 51 et (F) If the asbestos claim or silica claim in- (ii) bilateral pleural thickening graded b2 seq.), commonly known as the Employers’ volves more than 1 claimant, the identity of or higher on the ILO scale including blunting Liability Act, or damages recovered by any the defendant or defendants against whom of the costophrenic angle; or employee in a liability action against an em- each claimant asserts a claim. (iii) pathological asbestosis graded 1(B) or ployer; or (G) The specific disease related to asbestos higher under the criteria published in the (ii) any claim for exemplary or punitive or silica claimed to exist. Asbestos-Associated Diseases, Special Issue damages by an employee, estate, heir, rep- (H) Any— of the Archives of Pathological and Labora- resentative, or any other person or entity (i) supporting documentation of the condi- tory Medicine, Volume 106, Number 11, Ap- against the employer of an exposed person tion claimed to exist; and pendix 3 (October 8, 1982). arising out of, or related to, an asbestos-re- (ii) documentation to support the claimant (F) A determination by the diagnosing, lated injury or silica-related injury. or index person’s identification of the asbes- qualified physician that asbestosis or diffuse SEC. 4. ELEMENTS OF PROOF FOR ASBESTOS OR tos or silica product that such person was ex- pleural thickening is a substantial contrib- SILICA CLAIMS. posed to. uting factor to the exposed person’s physical (a) IMPAIRMENT ESSENTIAL ELEMENT OF (2) INDIVIDUAL REQUIREMENT.— impairment, based at a minimum on a deter- CLAIM.— (A) IN GENERAL.—All asbestos claims and mination that the claimant has— (1) IN GENERAL.—It shall be an essential silica claims along with any sworn informa- (i) either— element to bring or maintain an asbestos or tion required under paragraph (1) shall be in- (I) forced vital capacity below the pre- silica claim, that an exposed person suffer a dividually filed. dicted lower limit of normal and FEV–1/FVC physical impairment, of which asbestos or (B) CLASS CLAIMS NOT PERMITTED.—No ratio (using actual values) at or above the silica was a substantial contributing factor claims on behalf of a group or class of per- predicted lower limit of normal; or to such impairment. sons shall be permitted. (II) forced vital capacity below the pre- (2) EVIDENCE AS TO EACH DEFENDANT.—Any (d) PRIMA FACIE EVIDENCE OF PHYSICAL IM- dicted lower limit of normal and total lung requirement of a prima facie showing under PAIRMENT FOR NONMALIGNANT ASBESTOS capacity, by plethysmography or timed gas this section shall be made as to each defend- CLAIMS.— dilution, below the predicted lower limit of ant against whom a claimant alleges an as- (1) IN GENERAL.—No person shall bring or normal; and bestos or silica claim. maintain an asbestos claim related to an al- (ii) diffusing capacity of carbon monoxide (b) PRELIMINARY PROCEEDINGS; SERVICE OF leged nonmalignant asbestos–related condi- below the lower limit of normal or below 80 PRIMA FACIE EVIDENCE OF IMPAIRMENT.— tion in the absence of a prima facie showing percent of predicted. (1) FILING OF REPORT.—A claimant in any of physical impairment of the exposed person (G) Verification that the diagnosing, quali- civil action alleging an asbestos or silica for which asbestos exposure is a substantial fied physician has concluded that the ex- claim shall file, together with the complaint contributing factor. posed person’s impairment was not more or other initial pleading, a written report (2) PRIMA FACIE SHOWING.—A prima facie probably the result of causes other than as- and supporting test results constituting showing under paragraph (1) shall be made as bestos exposure as revealed by the employ- prima facie evidence of the exposed person’s to each defendant and include a detailed nar- ment, medical, and smoking history of the asbestos-related or silica-related impairment rative medical report and diagnosis by a exposed person. Any verification that in- meeting the requirements of this section as qualified physician that includes: cludes a conclusion which states that the to each defendant. (A) Evidence verifying that the diagnosing, medical findings and impairment are con- (2) TIMING.—For any asbestos or silica qualified physician has taken a detailed oc- sistent or compatible with asbestos exposure claim pending on the date of enactment of cupational and exposure history from the ex- or silica-related disease does not meet the this Act, a claimant shall file the written re- posed person or, if that person is deceased, requirements of this subsection. port and supporting test results described in from a person who is knowledgeable about (H) Copies of— paragraph (1) not later than 180 days after the exposures that form the basis for the (i) the B-reading, pulmonary function tests such date or not later than 60 days prior to claim, including identification of— (including printouts of the flow volume

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00055 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1190 CONGRESSIONAL RECORD — SENATE February 14, 2006 loops, volume time curves, DLCO graphs, and (i) the B-reading, pulmonary function tests ceased and a quality 1 chest X-ray does not data for all trials, and all other elements re- (including printouts of the flow volume exist) read by a certified B-reader as show- quired to demonstrate compliance with the loops, volume time curves, DLCO graphs, and ing, according to the ILO scale, A, B, or C equipment, quality, interpretation, and re- data for all trials, and all other elements re- sized opacities representing complicated sili- porting standards established in this Act); quired to demonstrate compliance with the cosis (also known as progressive massive fi- (ii) lung volume tests; equipment, quality, interpretation, and re- brosis); (iii) reports of x-ray examinations and di- porting standards established in this Act); (iii) pathological demonstration of classic agnostic imaging of the chest; (ii) lung volume tests; silicotic nodules exceeding 1 centimeter in (iv) pathology reports; and (iii) reports of x-ray examinations and di- diameter as set forth in 112 Archives of Pa- (v) any other testing reviewed by the diag- agnostic imaging of the chest; thology & Laboratory Medicine 673–720 (1988); nosing, qualified physician in reaching the (iv) pathology reports; and (iv) progressive massive fibrosis physician’s conclusions. (v) any other testing reviewed by the diag- radiologically established by large opacities (e) PRIMA FACIE EVIDENCE OF PHYSICAL IM- nosing, qualified physician in reaching the greater than 1 centimeter in diameter; or PAIRMENT FOR ASBESTOS-RELATED CANCER.— physician’s conclusions. (v) acute silicosis. (1) IN GENERAL.—No person shall bring or RIMA FACIE EVIDENCE OF PHYSICAL IM- (f) P (D) If the claimant is asserting a claim for maintain an asbestos claim related to an al- PAIRMENT FOR ASBESTOS-RELATED MESOTHE- silicosis, evidence verifying there has been a leged asbestos-related cancer, other than LIOMA.— sufficient latency period for the applicable mesothelioma, in the absence of a prima (1) IN GENERAL.—No person shall bring or type of silicosis. facie showing of a primary cancer for which maintain an asbestos claim related to al- asbestos exposure is a substantial contrib- leged mesothelioma in the absence of a (E) A determination by the diagnosing, uting factor. prima facie showing of an asbestos-related qualified physician, on the basis of a per- sonal medical examination and pulmonary (2) PRIMA FACIE SHOWING.—A prima facie malignant tumor with a primary site of ori- showing under paragraph (1) shall be made as gin in the pleura, the peritoneum, or peri- function testing of the exposed person, or if to each defendant and include a detailed nar- cardium. the exposed person is deceased, based upon rative medical report and diagnosis by a (2) PRIMA FACIE SHOWING.—A prima facie the medical records of the deceased, that the qualified physician that includes: showing under paragraph (1) shall be made as claimant has, or if deceased, had a perma- (A) Evidence verifying that the diagnosing, to each defendant and include a report by a nent respiratory impairment rating of at qualified physician has taken a detailed oc- qualified Board-certified pathologist certi- least Class 2 as defined by and evaluated pur- cupational and exposure history from the ex- fying the diagnosis of mesothelioma and a suant to the AMA’s Guides to the Evaluation posed person or, if that person is deceased, report by a qualified physician certifying of Permanent Impairment. from a person who is knowledgeable about that the mesothelioma was not more prob- (F) Verification that the diagnosing, quali- the exposures that form the basis for the ably the result of causes other than asbestos fied physician has concluded that the ex- claim, including identification of— exposure as revealed by the employment, posed person’s impairment was not more (i) all of the exposed person’s places of em- medical, and smoking history of the exposed probably the result of causes other than sili- ployment and exposure to airborne contami- person. ca exposure as revealed by the employment, nants (including asbestos, silica, and other (g) PRIMA FACIE EVIDENCE OF PHYSICAL IM- medical, and smoking history of the exposed disease-causing dusts, mists, fumes, and air- PAIRMENT FOR SILICA CLAIMS.— person. Any verification that includes a con- borne contaminants) that can cause pul- (1) IN GENERAL.—No person shall bring or clusion which states that the medical find- monary impairment; and maintain a silica claim related to an alleged ings and impairment are consistent or com- (ii) the nature, duration, and level of each silica-related condition, other than a silica- patible with silica exposure or silica–related such exposure. related cancer, in the absence of a prima disease does not meet the requirements of (B) Evidence— facie showing of physical impairment as a this subsection. (i) verifying that the diagnosing, qualified result of a medical condition to which expo- (G) Copies of— physician has taken a detailed medical and sure to silica was a substantial contributing (i) the B-reading, pulmonary function tests smoking history, including a thorough re- factor. (including printouts of the flow volume view of— (2) PRIMA FACIE SHOWING.—A prima facie loops, volume time curves, DLCO graphs, and (I) the exposed person’s past and present showing under paragraph (1) shall be made as data for all trials, and all other elements re- medical problems; and to each defendant and include a detailed nar- quired to demonstrate compliance with the (II) the most probable cause of each such rative medical report and diagnosis by a equipment, quality, interpretation, and re- medical problem; or qualified physician that includes: porting standards established in this Act); (ii) if the exposed person is deceased, from (A) Evidence verifying that the diagnosing, (ii) lung volume tests; a person who is knowledgeable regarding qualified physician has taken a detailed oc- (iii) reports of x-ray examinations and di- such exposed person’s medical and smoking cupational and exposure history from the ex- agnostic imaging of the chest; history. posed person or, if that person is deceased, (iv) pathology reports; and (C) Evidence sufficient to demonstrate— from a person who is knowledgeable about (v) any other testing reviewed by the diag- (i) that at least 10 years have elapsed since the exposures that form the basis for the nosing, qualified physician in reaching the claim, including identification of— the exposed person’s first exposure to asbes- physician’s conclusions. tos; and (i) all of the exposed person’s places of em- (ii) the date of any such diagnosis of the ployment and exposure to airborne contami- (h) PRIMA FACIE EVIDENCE OF PHYSICAL IM- cancer. nants (including asbestos, silica, and other PAIRMENT FOR SILICA-RELATED CANCER.— (D) Evidence verifying that the exposed disease-causing dusts, mists, fumes, and air- (1) IN GENERAL.—No person shall bring or person has— borne contaminants) that can cause pul- maintain a silica claim related to an alleged (i) an ILO quality 1 chest x-ray (or a qual- monary impairment; and silica-related cancer in the absence of a ity 2 chest x-ray if the exposed person is de- (ii) the nature, duration, and level of each prima facie showing of a primary cancer for ceased and a quality 1 chest x-ray does not such exposure. which exposure to the defendant’s silica is a exist) read by a certified B-reader as show- (B) Evidence verifying that the diagnosing, substantial contributing factor. ing, according to the ILO scale, bilateral qualified physician has taken a detailed (2) PRIMA FACIE SHOWING.—A prima facie small irregular opacities (s, t, or u) graded 1/ medical and smoking history from the ex- showing under paragraph (1) shall be made as 0 or higher on the ILO scale; or posed person (or if the exposed person is de- to each defendant and include a detailed nar- (ii) pathological asbestosis graded 1(B) or ceased, from the person most knowledgeable rative medical report and diagnosis by a higher under the criteria published in the of such history), including a thorough review qualified physician that includes: Asbestos-Associated Diseases, Special Issue of— (A) Evidence verifying that the diagnosing, of the Archives of Pathological and Labora- (i) the exposed person’s past and present qualified physician has taken a detailed oc- tory Medicine, Volume 106, Number 11, Ap- medical problems; and cupational and exposure history from the ex- pendix 3 (October 8, 1982). (ii) the most probable cause of each such posed person or, if that person is deceased, (E) Verification that the diagnosing, quali- medical problem. from a person who is knowledgeable about fied physician has concluded that the ex- (C) A determination by the diagnosing, the exposures that form the basis for the posed person’s impairment was not more qualified physician that the claimant has— claim, including identification of— probably the result of causes other than as- (i) an ILO quality 1 chest x-ray (or a qual- (i) all of the exposed person’s places of em- bestos as revealed by the employment, med- ity 2 chest x-ray if the exposed person is de- ployment and exposure to airborne contami- ical, and smoking history of the exposed per- ceased and a quality 1 chest x-ray does not nants (including silica and other disease- son. Any verification that includes a conclu- exist) read by a certified B-reader as show- causing dusts, mists, fumes, and airborne sion which states that the medical findings ing, according to the ILO scale, bilateral pre- contaminants) that can cause pulmonary im- and impairment are consistent or compatible dominantly nodular opacities (p, q, or r) oc- pairment; and with asbestos exposure or asbestos-related curring primarily in the upper lung fields, (ii) the nature, duration, and level of each disease does not meet the requirements of graded 1/0 or higher; such exposure. this subsection. (ii) an ILO quality 1 chest X-ray (or a qual- (B) Evidence verifying that the diagnosing, (F) Copies of— ity 2 chest X-ray if the exposed person is de- qualified physician has taken a detailed

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PROCEDURES. (F) the stay or dismissal would not result qualified physician that the claimant has— (a) NO PRESUMPTION AT TRIAL.—Evidence in unreasonable duplication or proliferation (i) an ILO quality 1 chest x-ray (or a qual- relating to the prima facie showings required of litigation. ity 2 chest x-ray if the exposed person is de- under section 4 shall not— (3) WAIVER OF STATUTE OF LIMITATIONS DE- ceased and a quality 1 chest x-ray does not (1) create any presumption that a claimant FENSE.—A trial court may not abate or dis- exist) read by a certified B-reader as show- has an asbestos or silica-related injury or miss a claim under this subsection until a ing, according to the ILO scale, bilateral pre- impairment; and defendant files with the court, or with the dominantly nodular opacities (p, q, or r) oc- (2) be conclusive as to the liability of any clerk of the court, a written stipulation curring primarily in the upper lung fields, defendant. that, with respect to a new action on such graded 1/0 or higher; (b) ADMISSIBILITY OF EVIDENCE.—No evi- claim commenced by the plaintiff, the de- (ii) an ILO quality 1 chest X-ray (or a qual- dence shall be offered at a trial, and a jury fendant waives the right to assert a statute ity 2 chest X-ray if the exposed person is de- shall not be informed of— of limitations defense in all other States, ceased and a quality 1 chest X-ray does not (1) the granting or denial of a motion to districts, or divisions in which such claim exist) read by a certified B-reader as show- dismiss an asbestos or silica claim under the was not barred by limitations at the time ing, according to the ILO scale, A, B, or C provisions of this Act; or such claim was filed in the State where such sized opacities representing complicated sili- (2) the provisions of section 4 with respect claim was originally filed as necessary to ef- cosis (also known as progressive massive fi- to what constitutes a prima facie showing of fect a tolling of the limitations periods in brosis); or asbestos or silica-related impairment. those States — (iii) a pathological demonstration of clas- (c) DISCOVERY.—Until such time as a trial (A) beginning on the date such claim was court enters an order determining that a sic silicotic nodules exceeding 1 centimeter originally filed; and claimant has established prima facie evi- in diameter as set forth in 112 Archives of (B) ending on the date— dence of impairment, no asbestos or silica Pathology & Laboratory Medicine 673–720 (i) such claim is dismissed; or claim shall be subject to discovery, except (1988). (ii) an abatement period of 1 year ends. discovery— (D) Evidence sufficient to demonstrate— (4) COURT DUTIES.—A court may not abate (1) related to establishing or challenging (i) that at least 10 years have elapsed since or dismiss a claim under paragraph (3) until such prima facie evidence; or the exposed person’s first exposure to silica; a defendant files with the court, or with the (2) by order of the trial court upon— clerk of the court, a written stipulation and (A) motion of 1 of the parties; and that, with respect to a new action on such (ii) the date of any such diagnosis of the (B) for good cause shown. claim commenced by the plaintiff in another cancer. (d) CONSOLIDATION.— State, district, or division, that the claimant (E) Verification that the diagnosing, quali- (1) AT TRIAL.— and the defendant may— fied physician has concluded that the ex- (A) IN GENERAL.—A court may consolidate (A) rely on responses to discovery already posed person’s impairment was not more for trial any number and type of asbestos or provided under the rules of civil procedure of probably the result of causes other than sili- silica claims with the consent of all the par- the State, district, or division in which such ca exposure as revealed by the employment, ties. claim was originally filed; and medical, and smoking history of the exposed (B) ABSENCE OF CONSENT.—In the absence of (B) rely on any additional discovery that person. Any verification that includes a con- any consent under subparagraph (A), a court may be conducted under the rules of civil clusion which states that the medical find- may consolidate for trial only asbestos procedure in another State, district, or divi- ings and impairment are consistent or com- claims or silica claims relating to the same sion. patible with silica exposure or silica–related exposed person and members of the house- (f) VENUE.— disease does not meet the requirements of hold of such exposed person. (1) IN GENERAL.—An asbestos or silica this subsection. (2) CLASS ACTIONS.—No class action or any claim filed after the date of enactment of (F) Copies of— other form of mass aggregation claim filing this Act may be filed only in the county of (i) the B-reading, pulmonary function tests relating to more than 1 exposed person, ex- the State or the district or division of the (including printouts of the flow volume cept claims relating to the exposed person United States where— loops, volume time curves, DLCO graphs, and and members of the household of such ex- (A) the claimant resided for a period of at data for all trials, and all other elements re- posed person, shall be permitted for asbestos least 180 consecutive days immediately prior quired to demonstrate compliance with the or silica claims. to filing suit; or equipment, quality, interpretation, and re- (3) AT DISCOVERY.—Any decision by a court (B) the exposed person had the most sub- porting standards established in this Act); to consolidate claims under paragraph (1) stantial cumulative exposure to asbestos for (ii) lung volume tests; shall not preclude consolidation of asbestos an asbestos claim or to silica for a silica (iii) reports of x-ray examinations and di- or silica claim cases by a court order for pre- claim, and that such exposure was a substan- agnostic imaging of the chest; trial or discovery purposes. tial contributing factor to the asbestos or (iv) pathology reports; and (e) FORUM NON CONVENIENS.— silica related impairment on which such (v) any other testing reviewed by the diag- (1) IN GENERAL.—Any asbestos or silica claim is based. nosing, qualified physician in reaching the claim filed on or after the date of enactment (2) IMPROPER VENUE.—With respect to as- physician’s conclusions. of this Act, if the court in which such claim bestos or silica claims pending as of the date (i) COMPLIANCE WITH TECHNICAL STAND- is pending, on written motion of a party, of enactment of this Act, and in which the ARDS.—Evidence relating to physical impair- finds that in the interest of justice and for trial, or any new trial or retrial following ment under this section, including pul- the convenience of the parties a claim or ac- motion, appeal, or otherwise, has not com- monary function testing and diffusing stud- tion to which this Act applies would be more menced with presentation of evidence to the ies— properly heard in a forum outside the State, trier of fact as of the date of enactment of (1) shall comply with the technical rec- district, or division in which such claim was this Act, any claim as to which venue would ommendations for examinations, testing pro- filed, the court shall— not have been proper if the claim originally cedures, quality assurance, quality control, (A) decline to exercise jurisdiction under had been brought in accordance with para- and equipment in the AMA’s Guides to the the doctrine of forum non conveniens; and graph (1) shall, not later than 90 days after Evaluation of Permanent Impairment, the (B) shall stay or dismiss such claim. the date of enactment of this Act, be trans- most current version of the Official State- (2) CONSIDERATIONS.—In determining ferred to the court of general civil jurisdic- ments of the American Thoracic Society re- whether to grant a motion to stay or dismiss tion in the county, district, or division of the garding lung function testing, including gen- a claim under paragraph (1), a court shall State in which the action is pending in eral considerations for lung function testing, consider whether— which either— standardization of spirometry, standardiza- (A) an alternate forum exists in which such (A) the claimant was domiciled at the time tion of the measurement of lung volumes, claim or action may be tried; the asbestos or silica claim originally was standardization of the single-breath deter- (B) the alternate forum provides an ade- filed; or mination of carbon monoxide uptake in the quate remedy; (B) the exposed person had the most sub- lung, and interpretative strategies for lung (C) maintenance of such claim in the court stantial cumulative exposure to asbestos for testing in effect at the time of the perform- of the State in which the claim was filed an asbestos claim or to silica for a silica ance of any examination or test on the ex- would work a substantial injustice to the claim, and that such exposure was a substan- posed person required by this Act; moving party; tial contributing factor to the asbestos or

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silica related impairment on which the claim silica claim entered into before the date of (4) LIMITATION ON PAYMENTS BY DEFENDANT is based. enactment of this Act. PARTICIPANTS.— (3) REMOVAL.— (b) 2–DISEASE RULE; DISTINCT CLAIMS.— (A) IN GENERAL.—Under expedited proce- (A) IN GENERAL.—If a State court refuses or (1) IN GENERAL.—An asbestos or silica dures established by the Administrator, any fails to apply the provisions of this Act, any claim arising out of a non-malignant condi- defendant participant may apply for a limi- party in a civil action for an asbestos claim tion shall be a distinct cause of action, whol- tation on its annual payment obligation to may remove such action to a district court ly separate from a claim for an asbestos-re- the Fund by showing that it qualifies under of the United States in accordance with lated or silica-related cancer. subparagraph (C). The Administrator shall chapter 89 of title 28, United States Code. (2) NO DAMAGES FOR FEAR.—No damages promptly grant that application if the re- (B) JURISDICTION OVER REMOVED ACTIONS.— shall be awarded for fear or increased risk of quirements under subparagraph (C) are satis- The district courts of the United States shall future disease in any civil action asserting fied. have jurisdiction of all civil actions removed an asbestos or silica claim. (B) STAY OF PAYMENT.—A defendant partic- under this paragraph, without regard to the SEC. 7. EXPERTS. ipant who applies for a limitation on its an- amount in controversy and without regard to nual payment obligation to the Fund under (a) IN GENERAL.—A person who holds a the citizenship or residence of the parties. valid medical license in good standing in a subparagraph (A) shall have the payment re- (C) REMOVAL BY ANY DEFENDANT.—A civil State, but who is not licensed to practice quired under subsection (i)(1)(A)(iv) stayed action may be removed to the district court medicine in that State, and who testifies, until the Administrator has made a deter- of the United States under this paragraph by whether by deposition, affidavit, live, or oth- mination with respect to the application of any defendant without the consent of all de- that defendant participant. erwise, as a medical expert witness on behalf fendants. (C) APPLICATION FOR LIMITATION.—A de- of any party in an asbestos or silica claim is (D) REMAND.—A district court of the fendant participant may apply under sub- deemed to have a temporary license to prac- United States shall remand any civil action paragraph (A) for a limit on its annual pay- tice medicine in the State in which the removed solely under this paragraph, unless ment obligation to the Fund if that defend- claim is pending solely for the purpose of the court finds that— ant participant— providing such testimony and is subject to (i) the State court failed to comply with (i) is included in Tiers II, III, IV, V, or VI that extent to the authority of the medical procedures prescribed by law; or under section 202; and licensing board or agency of that State. (ii) the failure to dismiss by the State (ii) has prior asbestos expenditures less (b) PENALTY FOR FALSE TESTIMONY.—If a court lacked substantial support in the than $200,000,000 and has revenues as deter- physician renders expert medical testimony record before the State court. mined under section 203 that are less than that is false, intentionally misleading or de- (E) LIMITATION.—Civil actions in State $10,000,000,000. ceptive, or that intentionally misstates the court subject to this Act may not be re- (D) LIMITATION.— relevant applicable standard of care, the moved to any district court of the United (i) IN GENERAL.—A defendant participant States unless such removal is otherwise medical licensing board or agency of the that qualifies for a limitation under this proper without regard to the provisions of State in which the claim is pending may paragraph may apply for only 1 of the limits this Act or is removed under this paragraph. take such action as is permitted under the under subclause (I), (II), or (III) of clause (ii). (g) PREEMPTION.— laws and regulations of that State governing A defendant participant may not change its (1) IN GENERAL.—This Act shall govern all the conduct of physicians. application once the application has been ap- asbestos and silica claims filed in Federal or (c) RULE OF CONSTRUCTION.—This section proved by the Administrator. State courts on or after the effective date of shall not be construed to permit an out of (ii) APPLICATION FOR 1 LIMITATION.—Subject this Act, or which are pending in Federal or State physician to practice medicine in any to clause (i), a defendant participant may State courts on the effective date of this Act other State other than as provided in this apply for a limit of an amount equal to— and in which the trial, or any new trial or re- section. (I) 125 percent of the arithmetical average trial following motion, appeal or otherwise, SEC. 8. SEVERABILITY. for fiscal years 1998 through 2002 of the an- has not commenced with presentation of evi- If any provision of this Act, or the applica- nual prior asbestos expenditures of that de- dence to the trier of fact as of the effective tion of such provision to any person or cir- fendant participant; date of this Act, except for enforcement of cumstance is held to be unconstitutional, (II) 150 percent of the arithmetical average claims for which a final judgment has been the remainder of this Act, and the applica- for fiscal years 1998 through 2002 of the an- duly entered by a court and that is no longer tion of the provisions of such to any person nual prior asbestos expenditures of that de- subject to any appeal or judicial review on or circumstance shall not be affected there- fendant participant, excluding— the effective date of this Act. by. (aa) the amount of any payments by insur- (2) GREATER LIMITATIONS BY STATES.—Noth- SEC. 9. MISCELLANEOUS PROVISIONS. ance carriers for the benefit of that defend- ing in this Act shall limit or preempt any (a) CONSTRUCTION WITH OTHER LAWS.—This ant participant or on behalf of that defend- State law or precedent having the effect of Act shall not be construed to— ant participant; and imposing additional or greater limits or re- (1) affect the scope or operation of any (bb) any reimbursements of the amounts strictions on the assertion or prosecution of workers’ compensation law or veterans’ ben- actually paid by that defendant participant an asbestos or silica claim. efit program; with respect to prior asbestos expenditures SEC. 6. STATUTE OF LIMITATIONS; 2–DISEASE (2) affect the exclusive remedy or subroga- for fiscal years 1998 through 2002, regardless RULE. tion provisions of any such law; or of when such reimbursements were actually (a) STATUTE OF LIMITATIONS.— (3) authorize any lawsuit which is barred paid; or (1) IN GENERAL.—An asbestos or silica by any such provision of law. (III) 1.67024 percent of the revenues for the claim not barred in a State as of the date of (b) CONSTITUTIONAL AUTHORITY.—The con- most recent fiscal year ending on or prior to enactment of this Act, a claimant’s cause of stitutional authority for this Act is con- December 31, 2002, of the affiliated group to action shall not accrue, nor shall the run- tained in Article I, section 8, clause 3 and Ar- which that defendant participant belongs. ning of limitations commence, prior to the ticle III, section 1 of the Constitution of the (E) JUDICIAL REVIEW.—A defendant partici- earlier of the date— United States. pant is entitled to judicial review under sec- (A) on which an exposed person received a tion 303 of a denial of an application under SEC. 10. EFFECTIVE DATE. medical diagnosis of an asbestos-related im- this paragraph. During the pendency of that (a) IN GENERAL.—This Act applies to all as- pairment or silica-related impairment; review, section 223(a) shall not apply to that bestos or silica claims filed on or after the (B) on which an exposed person discovered defendant participant. Without regard to date of enactment of this Act. facts that would have led a reasonable per- section 305(a), the reviewing court may, in (b) PENDING PROCEEDINGS.—This Act also son to obtain a medical diagnosis with re- its discretion, provide such interlocutory re- applies to any pending asbestos or silica spect to the existence of an asbestos-related lief to the defendant participant as may be claims in which a trial has not commenced impairment or silica-related impairment; or just. as of the date of enactment of this Act. (C) of death of the exposed person having (F) APPLICABILITY OF THE GUARANTEE SUR- an asbestos-related or silica-related impair- Mr. CORNYN submitted an CHARGE.—A defendant participant whose ap- ment. SA 2789. plication under this paragraph is approved (2) RULE OF CONSTRUCTION.—Nothing in this amendment intended to be proposed to by the Administrator, shall not be exempt section shall be construed to revive or ex- amendment SA 2746 proposed by Mr. from the guaranteed payment surcharge es- tend limitations with respect to any claim FRIST (for Mr. SPECTER (for himself and tablished under subsection (l), unless other- for asbestos-related impairment or silica-re- Mr. LEAHY)) to the bill S. 852, to create wise provided in this Act. lated impairment that was otherwise time- a fair and efficient system to resolve (G) MINIMUM PAYMENT.—Notwithstanding barred as a matter of applicable State law as claims of victims for bodily injury any other provision of this paragraph, a de- of the date of enactment of this Act. caused by asbestos exposure, and for fendant participant that is granted a limita- (3) NO EFFECT ON SETTLEMENT AGREE- other purposes; which was ordered to tion by the Administrator shall pay not less MENTS.—Nothing in this section shall be con- than 5 percent of the amount the participant strued so as to adversely affect, impair, lie on the table; as follows: is scheduled to pay under section 202. limit, modify, or nullify any settlement On page 171, between lines 17 and 18, insert On page 182, line 15, strike ‘‘(5)’’ and insert agreement with respect to an asbestos or the following and re-number accordingly: ‘‘(6)’’.

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00058 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1193 On page 184, line 9, strike ‘‘(6)’’ and insert ment obligation to the Fund under subpara- by borrowing or financing with equity cap- ‘‘(7)’’. graph (A) is approved by the Administrator, ital, or through issuance of securities of the shall not be exempt from the guaranteed defendant participant or its affiliated group SA 2790. Mr. CORNYN submitted an payment surcharge established under sub- to the Fund; amendment intended to be proposed to section (1) unless otherwise provided in this (6) the defendant participant’s ability to amendment SA 2746 proposed by Mr. Act. delay discretionary capital spending; and (7) MINIMUM PAYMENT.—Notwithstanding (7) any other factor that the Administrator FRIST (for Mr. SPECTER (for himself and the limitations provided in this subsection, a considers relevant. Mr. LEAHY)) to the bill S. 852, to create defendant participant that is granted a limi- (C) TERM.—A financial hardship adjust- a fair and efficient system to resolve tation by the Administrator shall pay no less ment under this paragraph shall have a term claims of victims for bodily injury than 5 percent of the amount the participant of 5 years unless the Administrator deter- caused by asbestos exposure, and for is scheduled to pay under section 202. mines at the time the adjustment is made other purposes; which was ordered to (d) ADJUSTMENTS.— that a shorter or longer period is appropriate (1) IN GENERAL.—Under expedited proce- lie on the table; as follows: in the light of the financial condition of the dures established by the Administrator, a de- defendant participant and its affiliated On page 171, strike all after line 5 until ‘‘(5) fendant participant may seek adjustment of group and other relevant factors, provided Bankruptcy Relief’’ and insert the following the amount of its payment obligation based that a financial hardship adjustment under and renumber accordingly: on severe financial hardship or demonstrated this paragraph shall terminate automati- (c) LIMITATION.— inequity. The Administrator may determine cally in the event that the defendant partici- (1) IN GENERAL.—Under expedited proce- whether to grant an adjustment, in accord- pant holding the adjustment files a petition dures established by the Administrator, any ance with this subsection. A defendant par- under title 11, United States Code. defendant participant may apply for a limi- ticipant has a right to obtain a rehearing of (D) RENEWAL.—A defendant participant tation on its annual payment obligation to the Administrator’s determination under may renew a hardship adjustment upon expi- the Fund by showing that it qualifies under this subsection under the procedures pre- ration by demonstrating that it remains jus- subparagraph (3), and the Administrator scribed in subsection (i)(10). The Adminis- tified. Such renewed hardship adjustments shall promptly grant such application if the trator may adjust a defendant participant’s shall have a term of 5 years unless the Ad- standards in subparagraph (3) are satisfied. payment obligations under this subsection, ministrator determines at the time of the re- (2) STAY OF PAYMENT.—A defendant partici- either by forgiving the relevant portion of newed adjustment that a shorter or longer pant who applies for a limitation on its an- the otherwise applicable payment obligation period is appropriate in the light of the fi- nual payment obligation to the Fund under or by providing relevant rebates from the de- nancial condition of the defendant partici- subparagraph (1) shall have the payment re- fendant hardship and inequity adjustment pant and its affiliated group and other rel- quired under subsection (i)(l)(A)(iv) stayed account created under subsection (j) after evant factors, provided that a renewed finan- until the Administrator has made a deter- payment of the otherwise applicable pay- cial hardship adjustment under this para- mination with respect to the application of ment obligation, at the discretion of the Ad- graph shall terminate automatically in the such defendant participant. ministrator. event that the defendant participant holding (3) APPLICATION FOR LIMITATION.—A defend- (2) FINANCIAL HARDSHIP ADJUSTMENTS.— the adjustment files a petition under title 11, ant participant may apply under subpara- (A) GENERAL.—Any defendant participant United States Code. graph (A) for a limit on its annual payment in any tier may apply for an adjustment under this paragraph at any time during the (E) PROCEDURE.— obligation to the Fund if: (1) The Administrator shall prescribe the period in which a payment obligation to the (A) it is included in Tiers II, Ill, IV, V, or information to be submitted in applications VI under section 202; and Fund remains outstanding and may qualify for such an adjustment by demonstrating to for adjustments under this paragraph. (B) its prior asbestos expenditures are less (2) All audited financial information re- the satisfaction of the Administrator that than $200 million and its revenues as defined quired under this paragraph shall be as re- the amount of its payment obligation would in this section are less than $10 Billion. ported by the defendant participant in its (4) LIMITATION.—Such qualifying defendant materially and adversely affect the defend- ant participant’s ability to continue its busi- annual report filed with the Securities and participant may apply for the limit set forth Exchange Commission in accordance with in either clause (A), (B) or (C), provided that ness and to pay or satisfy its debts generally as and when they come due. Such an adjust- the Securities Exchange Act of 1934 (15 it may apply only under one such clause and U.S.C. 78a et seq.). Any defendant partici- may not change its application once the ap- ment shall be in an amount that in the judg- ment of the Administrator is reasonably nec- pant that does not file reports with the Secu- plication has been approved by the Adminis- rities and Exchange Commission or which trator. A defendant participant qualifying essary to prevent such material and adverse effect on the defendant participant’s ability does not have audited financial statements under this subparagraph may apply for a shall submit financial statements prepared limit on its annual payment obligation to to continue its business and to pay or satisfy its debts generally as and when they come pursuant to generally accepted accounting the Fund to an amount equal to— principles. The chairman, chief executive of- (A) 125 percent of the arithmetical average due. ACTORS TO CONSIDER.-In determining ficer, and chief financial officer of the de- for fiscal years 1998 through 2002 of such de- (B) F whether to make an adjustment under sub- fendant participant shall certify under pen- fendant participant’s annual prior asbestos paragraph (A) and the amount thereof, the alty of law the completeness and accuracy of expenditures; or Administrator shall consider— the financial statements provided under this (B) 150 percent of the arithmetical average (1) the financial situation of the defendant sub-paragraph. for fiscal years 1998 through 2002 of such de- participant and its affiliated group as shown (3) The chairman, chief executive officer, fendant participant’s annual prior asbestos in historical audited financial statements, and chief financial officer of the defendant expenditures, excluding (I) the amount of including income statement, balance sheet, participant shall certify that any projected any payments by insurance carriers for the and statement of cash flow, for the three fis- information and analyses submitted to the benefit of such defendant participant or on cal years ending immediately prior to the Administrator were made in good faith and behalf of such defendant participant, and (II) application and projected financial state- are reasonable and attainable.’’ any reimbursements of the amounts actually ments for the three fiscal years following the (3) INEQUITY ADJUSTMENTS.— paid by such defendant participant with re- application; (A) IN GENERAL—A defendant participant— spect to prior asbestos expenditures for fiscal (2) an analysis of capital spending and (i) may qualify for an adjustment based on years 1998 through 2002, regardless of when fixed charge coverage on a historical basis inequity by demonstrating that the amount such reimbursements were actually paid; or for the three fiscal years immediately pre- of its payment obligation under the statu- (C) 1.67024 percent of the revenues for the ceding a defendant participant’s application tory allocation is exception 25 ally inequi- most recent fiscal year ending on or prior to and for the three fiscal years following the table— December 31, 2002, of the affiliated group to application; (I) when measured against the amount of which such defendant participant belongs. (3) any payments or transfers of property the likely cost to the defendant participant (5) JUDICIAL REVIEW.—A defendant partici- made, or obligations incurred, within the net of insurance of its future liability in the pant who is aggrieved by the denial by the preceding 6 years by the defendant partici- tort system in the absence of the Fund; Administrator of its application under this pant to or for the benefit of any insider as (II) when measured against the likely cost paragraph is entitled to judicial review defined under section 101(31) of title 11 of the of past and potential future claims in the ab- under section 303, and during the pendency of United States Code or any affiliate as de- sence of this Act; such review, section 223(a) shall not apply to fined under section 101(2) of title 11 of the (III) when compared to the median pay- that defendant participant. Without regard United States Code; ment rate for all defendant participants in to section 305(a), the reviewing court may, in (4) any prior extraordinary transactions the same tier; or its discretion, provide such interlocutory re- within the preceding 6 years involving the (IV) when measured against the percentage lief to the defendant participant as may be defendant participant, including without of the prior asbestos expenditures of the de- just. limitation payments of extraordinary sala- fendant that were incurred with respect to (6) APPLICABILITY OF THE GUARANTEE SUR- ries, bonuses, or dividends; claims that neither resulted in an adverse CHARGE.—A defendant participant whose ap- (5) the defendant participant’s ability to judgment against the defendant, nor were plication for a limitation on its annual pay- satisfy its payment obligations to the Fund the subject of a settlement that required a

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00059 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1194 CONGRESSIONAL RECORD — SENATE February 14, 2006 payment to a plaintiff by or on behalf of that istrator may require the defendant partici- 2004, there were more asbestos-related bank- defendant; pant to pay any part or all of amounts not ruptcy filings than in either of the prior 2 (ii) shall qualify for a two-tier main tier paid due to the inequity adjustment on such decades. and a two-tier subtier adjustment reducing terms and conditions as established by the (10) Bankruptcies have led plaintiffs and the defendant participant’s payment obliga- Administrator. their lawyers to expand their search for sol- tion based on inequity by demonstrating (4) LIMITATION ON ADJUSTMENTS.—The ag- vent peripheral defendants. The number of that not less than 95 percent of such person’s gregate total of financial hardship adjust- asbestos defendants now includes over 8,500 prior asbestos expenditures arose from ments under paragraph (2) and inequity ad- companies, affecting many small and me- claims related to the manufacture and sale justments under paragraph (3) in effect in dium size companies and industries that of railroad locomotives and related products, any given year shall not be limited. span 85 percent of the United States econ- so long as such person’s manufacture and omy. sale of railroad locomotives and related SA 2791. Mr. CORNYN submitted an (11) Efforts to address asbestos litigation products is temporally and causally remote, amendment intended to be proposed to may augment silica-related filings. and for purposes of this clause, a person’s amendment SA 2746 proposed by Mr. (12) Silica is a naturally occurring mineral manufacture and sale of railroad loco- FRIST (for Mr. SPECTER (for himself and and is the second most common constituent motives and related products shall be of the earth’s crust. Crystalline silica in the deemed to be temporally and causally re- Mr. LEAHY)) to the bill S. 852, to create form of quartz is present in sand, gravel, mote if the asbestos claims historically and a fair and efficient system to resolve soil, and rocks. generally filed against such person relate to claims of victims for bodily injury (13) Silica-related illness, including sili- the manufacture and sale of railroad loco- caused by asbestos exposure, and for motives and related products by an entity cosis can develop from the inhalation of res- other purposes; which was ordered to pirable silica dust. Silicosis was widely rec- dissolved more than 25 years before the date lie on the table; as follows: of enactment of this Act; ognized as an occupational disease many (iii) shall be granted a two-tier adjustment Strike all after ‘‘SECTION 1. SHORT TITLE;’’ years ago. reducing the defendant participant’s pay- in the amendment and insert the following: (14) Silica claims, like asbestos claims, ment obligation based on inequity by dem- This Act may be cited as the ‘‘Asbestos and often involve individuals with no demon- onstrating that not less than 95 percent of Silica Claims Priorities Act’’. strable impairment. Claimants frequently such participant’s prior asbestos expendi- SEC. 2. FINDINGS AND PURPOSES. are identified through the use of interstate, tures arose from asbestos claims based on (a) FINDINGS.—Congress finds the fol- for-profit, screening companies. successor liability arising from a merger to lowing: (15) Silica screening processes have been which the participant or its predecessor was (1) Asbestos is a mineral that was widely found subject to substantial abuse and po- a party that occurred at least 30 years before used before the mid-1970s for insulation, fire- tential fraud in Federal silica litigation (In the date of enactment of this Act, and that proofing, and other purposes. re Silica Prods. Liab. Litig. (MDL No. 1553), such prior asbestos expenditures exceed the (2) Many American workers were exposed 398 F. Supp. 2d 563 (S.D. Tex. 2005)) and it inflation-adjusted value of the assets of the to asbestos, especially during the Second therefore is necessary to address silica legis- company from which such liability was de- World War. lation to preempt an asbestos-like litigation rived in such merger, and upon such dem- (3) Long-term exposure to asbestos has crisis. onstration the Administrator shall grant been associated with mesothelioma and lung (16) Concerns about statutes of limitations such adjustment for the life of the Fund and cancer, as well as with such non-malignant may prompt unimpaired asbestos and silica amounts paid by such defendant participant conditions as asbestosis, pleural plaques, and claimants to bring lawsuits prematurely to prior to such adjustment in excess of its ad- diffuse pleural thickening. protect against losing their ability to assert justed payment obligation under this clause (4) Although the use of asbestos has dra- a claim in the future should they develop an shall be credited against next succeeding re- matically declined since 1980 and workplace impairing condition. quired payment obligations; and exposures have been regulated since 1971 by (17) Sound public policy requires that the (iv) may, subject to the discretion of the the Occupational Safety and Health Admin- claims of persons with no present physical Administrator, be exempt from any payment istration, the diseases caused by asbestos impairment from asbestos or silica exposure, obligation if such defendant participant es- often have long latency periods and past ex- be deferred to give priority to physically im- tablishes with the Administrator that— posures will continue to result in significant paired claimants, and to safeguard the jobs, (I) such participant has satisfied all past claims well into the future. benefits, and savings of workers in affected claims; and (5) Asbestos related claims, driven largely companies. (II) there is no reasonable likelihood in the by unimpaired claimants, have flooded our (18) Claimant consolidations, joinders, and absence of this Act of any future claims with courts such that the United States Supreme similar procedures used by some courts to costs for which the defendant participant Court has characterized the situation as ‘‘an deal with the mass of asbestos and silica might be responsible. elephantine mass’’ that ‘‘calls for national cases can— (B) PAYMENT RATE.—For purposes of sub- legislation’’ (Ortiz v. Fibreboard Corpora- (A) undermine the appropriate functioning paragraph (A), the payment rate of a defend- tion, 119 S. Ct. 2295, 2302 (1999). of the court system; ant participant is the payment amount of (6) The American Bar Association supports (B) deny due process to plaintiffs and de- the defendant participant as a percentage of enactment of Federal legislation that would fendants; and such defendant participant’s gross revenues allow persons alleging non-malignant asbes- (C) further encourage the filing of thou- for the year ending December 31, 2002. tos-related disease claims to file a cause of sands of cases by exposed persons who are (C) TERM.—Subject to the annual avail- ability of funds in the defendant hardship action in Federal or State court only if those not sick and likely will never develop an im- and inequity adjustment account established persons meet the medical criteria in the pairing condition caused by exposure to as- under subsection (j), an inequity adjustment ‘‘ABA Standard for Non-Malignant Asbestos- bestos or silica. under this subsection shall have a term of 3 Related Disease Claims’’ and toll all applica- (19) Several states have enacted legislation years. ble statutes of limitations until such time as to prioritize asbestos and silica claims that (D) RENEWAL.—A defendant participant the medical criteria in such standard are serve as a model for national reform includ- may renew an inequity adjustment every 16 met. ing Texas, Ohio, Florida, and Georgia. years by demonstrating that the adjustment (7) Reports indicate that up to 90 percent (20) Asbestos litigation, if left unchecked remains justified. of asbestos claims are filed by individuals by reasonable congressional intervention, (E) REINSTATEMENT.— who allege that they have been exposed to will— (i) IN GENERAL.—Following the termination asbestos, but who suffer no demonstrable as- (A) continue to inhibit the national econ- of an inequity adjustment under subpara- bestos-related impairment. Lawyer-spon- omy and run counter to plans to stimulate graph (A), and during the funding period pre- sored x-ray screenings of workers at occupa- economic growth and the creation of jobs; scribed under subsection (a), the Adminis- tional locations are used to amass large (B) threaten the savings, retirement bene- trator shall annually determine whether numbers of claimants, the vast majority of fits, and employment of defendant’s current there has been a material change in condi- whom are unimpaired. and retired employees; tions which would support a finding that the (8) The costs of compensating unimpaired (C) affect adversely the communities in amount of the defendant participant’s pay- claimants and litigating their claims jeop- which these defendants operate; and ment under the statutory allocation was not ardizes the ability of defendants to com- (D) impair interstate commerce and na- inequitable. Based on this determination, pensate people with cancer and other serious tional initiatives. the Administrator may, consistent with the diseases, threatens the savings, retirement (21) The public interest and the interest of policies and legislative intent underlying benefits, and jobs of current and retired em- interstate commerce requires deferring the this Act, reinstate any or all of the payment ployees, and adversely affects the commu- claims of exposed persons who are not sick in obligations of the defendant participant as if nities in which the defendants operate. order to— the inequity adjustment had not been grant- (9) More than 73 companies have declared (A) preserve, now and for the future, de- ed for that 10 year period. bankruptcy due to the burden of asbestos fendants’ ability to compensate people who (ii) TERMS AND CONDITIONS.—In the event of litigation. The rate of asbestos-driven bank- develop cancer and other serious asbestos-re- a reinstatement under clause (i), the Admin- ruptcies is accelerating. Between 2000 and lated injuries; and

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00060 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1195 (B) safeguard the jobs, benefits, and sav- occupational medicine specialist’’ means a posed person’’ means a person whose claimed ings of American workers and the well-being physician— exposure to silica is by means of the alleged of the national economy. (A) who is certified in the subspecialty of inhalation of respirable silica. (b) PURPOSES.—The purposes of this Act occupational medicine by the American (14) FEV–1.—The term ‘‘FEV–1’’ means are to— Board of Preventive Medicine or the Amer- forced expiratory volume in the first second, (1) give priority to current claimants who ican Osteopathic Board of Preventive Medi- which is the maximal volume of air expelled can demonstrate an asbestos-related or sili- cine; and in 1 second during performance of simple spi- ca-related impairment based on reasonable, (B) whose certification was current at the rometric tests. objective medical criteria; time of— (15) FVC.—The term ‘‘FVC’’ means forced (2) toll the running of statutes of limita- (i) the performance of any examination; vital capacity, which is the maximal volume tions for persons who have been exposed to and of air expired with maximum effort from a asbestos or to silica, but who have no present (ii) rendition of any report required under position of full inspiration. this Act. asbestos-related or silica-related impair- (16) ILO SCALE.—The term ‘‘ILO scale’’ (7) BOARD-CERTIFIED PATHOLOGIST.—The ment; and means the system for the classification of term ‘‘Board-certified pathologist’’ means a (3) enhance the ability of the courts to su- chest x-rays set forth in the most current pervise and control asbestos and silica litiga- qualified physician— (A) who holds primary certification in ana- version of the International Labor Office’s tion. Guidelines for the Use of ILO International SEC. 3. DEFINITIONS. tomic pathology or combined anatomic or clinical pathology from the American Board Classification of Radiographs of In this Act, the following definitions shall of Pathology or the American Osteopathic Pneumoconioses in effect at the time of the apply: Board of Internal Medicine; performance of any examination or test on (1) AMA GUIDES TO THE EVALUATION OF PER- (B) whose professional practice is prin- the exposed person required by this Act. MANENT IMPAIRMENT.—The term ‘‘AMA cipally in the field of pathology and involves (17) PREDICTED LOWER LIMIT OF NORMAL.— Guides to the Evaluation of Permanent Im- regular evaluation of pathology materials The term ‘‘predicted lower limit of normal’’ pairment’’ means the most current version obtained from surgical or post mortem speci- means the calculated standard convention of the American Medical Association’s mens; and lying at the fifth percentile, below the upper Guides to the Evaluation of Permanent Im- (C) whose certification was current at the 95 percent of the reference population, based pairment in effect at the time of the per- time of— on age, height, and gender, according to the formance of any examination or test on the (i) any tissue or slide examination; or recommendations of the American Thoracic exposed person required by this Act. (ii) rendition of any report required under Society as referenced in the AMA’s Guides to (2) ASBESTOS.—The term ‘‘asbestos’’ this Act. the Evaluation of Permanent Impairment. means— (8) BOARD-CERTIFIED PULMONOLOGIST.—The (18) QUALIFIED PHYSICIAN.—The term (A) chrysotile; term ‘‘Board-certified pulmonologist’’ means ‘‘qualified physician’’ means a board-cer- (B) amosite; a qualified physician— tified internist, occupational medicine spe- (C) crocidolite (A) who is certified in the subspecialty of cialist, pathologist, or pulmonologist— (D) tremolite asbestos; pulmonary medicine by the American Board (A) who is licensed to practice in any (E) anthophyllite asbestos; of Internal Medicine or the American Osteo- State; (F) actinolite asbestos; pathic Board of Internal Medicine; and (B) who has personally conducted a phys- (G) winchite; (B) whose certification was current at the ical examination of the exposed person, or in (H) richterite; time of— the case of a board-certified pathologist, has (I) asbestiform amphibole minerals; and (i) the performance of any examination; examined tissue samples or pathological (J) any of the minerals described in sub- and slides of the exposed person, or if the exposed paragraphs (A) through (I) that have been (ii) rendition of any report required under person is deceased, based upon a detailed re- chemically treated or altered, including all this Act. view of the medical records and existing tis- minerals defined as asbestos under section (9) CERTIFIED B-READER.—The term ‘‘Cer- sue samples and pathological slides of the 1910 of title 29, Code of Federal Regulations tified B-reader’’ means a person— deceased person; in effect at the time an asbestos claim is (A) who has successfully passed the B-read- (C) who is treating or has treated the ex- filed. er certification examination for x-ray inter- posed person, and has or had a doctor-patient (3) ASBESTOS CLAIM.—The term ‘‘asbestos pretation sponsored by the National Insti- relationship with the exposed person at the claim’’— tute for Occupational Safety and Health; and time of the physical examination or, in the (A) means any claim for damages, losses, (B) whose certification was current at the case of a board–certified pathologist, has ex- indemnification, contribution, or other relief time of any readings required under this Act. amined tissue samples or pathological slides of whatever nature arising out of, based on, (10) CHEST X-RAYS.—The term ‘‘chest x- of the exposed person at the request of such or related to the alleged health effects asso- rays’’ means radiographic films taken in ac- treating physician; and ciated with the inhalation or ingestion of as- cordance with all applicable Federal and (D) whose diagnosing, examining, testing, bestos, including— State standards and in the posterior-anterior screening or treating of the exposed person (i) loss of consortium; view. was not, directly or indirectly, premised (ii) personal injury or death; (11) CLAIMANT.— upon, and did not require, the exposed person (iii) mental or emotional injury; (A) IN GENERAL.—The term ‘‘claimant’’ (iv) risk or fear of disease or other injury; means any party asserting an asbestos or or claimant to retain the legal services of (v) the costs of medical monitoring or sur- silica claim, including a— any attorney or law firm. veillance, to the extent such claims are rec- (i) plaintiff; (19) SILICA.—The term ‘‘silica’’ a respirable ognized under State law; or (ii) counterclaimant; crystalline form of the naturally occurring (vi) any claim made by, or on behalf of, (iii) cross-claimant; or mineral form of silicon dioxide, including any person exposed to asbestos, or a rep- (iv) third-party plaintiff. quartz, cristobalite, and tridymite. resentative, spouse, parent, child, or other (B) CLAIMS ON BEHALF OF AN ESTATE.—If (20) SILICA CLAIM.—The term ‘‘silica relative of the exposed person; and any claim described in subparagraph (A) is claim’’— (B) does not include a claim for compen- brought through, or on behalf of, an estate, (A) means any claim for damages, losses, satory benefits pursuant to a workers’ com- the term claimant includes the executor, indemnification, contribution, or other relief pensation law or a veterans’ benefits pro- surviving spouse, or any other descendant of of whatever nature arising out of, based on, gram. the decedent. or in any way related to the alleged health (4) ASBESTOSIS.—The term ‘‘asbestosis’’ (C) CLAIMS ON BEHALF OF A MINOR.—If any effects associated with the inhalation of sili- means bilateral diffuse interstitial fibrosis of claim described in subparagraph (A) is ca, including— the lungs caused by inhalation of asbestos. brought through, or on behalf of, a minor or (i) loss of consortium; (5) BOARD-CERTIFIED INTERNIST.—The term incompetent person, the term claimant in- (ii) personal injury or death; ‘‘Board-certified internist’’ means a qualified cludes the parent or guardian of such minor. (iii) mental or emotional injury; physician— (12) DLCO.—The term ‘‘DLCO’’ means dif- (iv) risk or fear of disease or other injury; (A) who is certified by the American Board fusing capacity of the lung for carbon mon- (v) the costs of medical monitoring or sur- of Internal Medicine or the American Osteo- oxide, which is the measurement of carbon veillance, to the extent such claims are rec- pathic Board of Internal Medicine; and monoxide transfer from inspired gas to pul- ognized under State law; or (B) whose certification was current at the monary capillary blood. (vi) any claim made by, or on behalf of, time of— (13) EXPOSED PERSON.— any person exposed to silica dust, or a rep- (i) the performance of any examination; (A) IN GENERAL.—The term ‘‘exposed per- resentative, spouse, parent, child, or other and son’’ means a person whose claimed exposure relative of the exposed person; and (ii) rendition of any report required under to asbestos or silica is the basis for an asbes- (B) does not include a claim for compen- this Act. tos or silica claim. satory benefits pursuant to the workers’ (6) BOARD-CERTIFIED OCCUPATIONAL MEDI- (B) SILICA CLAIMS.—With respect to any compensation law or a veterans’ benefits CINE SPECIALIST.—The term ‘‘Board-certified claim for exposure to silica, the term ‘‘ex- program.

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(21) SILICOSIS.—The term ‘‘silicosis’’ means (B) includes the Longshore and Harbor (iii) the identity of the manufacturer of fibrosis of the lung produced by inhalation of Workers’ Compensation Act (33 U.S.C. 901 et the specific asbestos or silica to which the silica, including— seq.) and chapter 81 of title 5, United States exposed person or index person was exposed. (A) acute silicosis; Code; and (E) The occupation and name of the em- (B) accelerated silicosis; and (C) does not include— ployer of the exposed person at the time of (C) chronic silicosis. (i) the Act of April 22, 1908 (45 U.S.C. 51 et each alleged exposure. (22) STATE.—The term ‘‘State’’— seq.), commonly known as the Employers’ (F) If the asbestos claim or silica claim in- (A) means any State of the United States; Liability Act, or damages recovered by any volves more than 1 claimant, the identity of and employee in a liability action against an em- the defendant or defendants against whom (B) includes— ployer; or each claimant asserts a claim. (i) the District of Columbia; (ii) any claim for exemplary or punitive (G) The specific disease related to asbestos (ii) Commonwealth of Puerto Rico; damages by an employee, estate, heir, rep- or silica claimed to exist. (iii) the Northern Mariana Islands; resentative, or any other person or entity (H) Any— (iv) the Virgin Islands; against the employer of an exposed person (i) supporting documentation of the condi- (v) Guam; arising out of, or related to, an asbestos-re- tion claimed to exist; and (vi) American Samoa; and lated injury or silica-related injury. (ii) documentation to support the claimant (vii) any other territory or possession of or index person’s identification of the asbes- SEC. 4. ELEMENTS OF PROOF FOR ASBESTOS OR the United States, or any political subdivi- SILICA CLAIMS. tos or silica product that such person was ex- sion of any of the locales described under posed to. (a) IMPAIRMENT ESSENTIAL ELEMENT OF this paragraph. (2) INDIVIDUAL REQUIREMENT.— CLAIM.— (23) SUBSTANTIAL CONTRIBUTING FACTOR.— (A) IN GENERAL.—All asbestos claims and (1) IN GENERAL.—It shall be an essential The term ‘‘substantial contributing fac- silica claims along with any sworn informa- element to bring or maintain an asbestos or tor’’— tion required under paragraph (1) shall be in- silica claim, that an exposed person suffer a (A) in the context of an asbestos claim, dividually filed. physical impairment, of which asbestos or means that— (B) CLASS CLAIMS NOT PERMITTED.—No silica was a substantial contributing factor (i) a claimant shall identify— claims on behalf of a group or class of per- to such impairment. (I) the specific asbestos product to which sons shall be permitted. (2) EVIDENCE AS TO EACH DEFENDANT.—Any the exposed person was exposed; (d) PRIMA FACIE EVIDENCE OF PHYSICAL IM- requirement of a prima facie showing under (II) the location and duration of such expo- PAIRMENT FOR NONMALIGNANT ASBESTOS this section shall be made as to each defend- sure; and CLAIMS.— (III) the specific circumstances of such ex- ant against whom a claimant alleges an as- (1) IN GENERAL.—No person shall bring or posure; bestos or silica claim. maintain an asbestos claim related to an al- (ii) such exposure— (b) PRELIMINARY PROCEEDINGS; SERVICE OF leged nonmalignant asbestos–related condi- (I) was more than incidental contact with PRIMA FACIE EVIDENCE OF IMPAIRMENT.— tion in the absence of a prima facie showing the product and location; and (1) FILING OF REPORT.—A claimant in any of physical impairment of the exposed person (II) took place on a regular basis over an civil action alleging an asbestos or silica for which asbestos exposure is a substantial extended period of time in physical prox- claim shall file, together with the complaint contributing factor. imity to the exposed person; or other initial pleading, a written report (2) PRIMA FACIE SHOWING.—A prima facie (iii) the exposed person inhaled respirable and supporting test results constituting showing under paragraph (1) shall be made as asbestos fibers in sufficient quantities to be prima facie evidence of the exposed person’s to each defendant and include a detailed nar- capable of causing harm; and asbestos-related or silica-related impairment rative medical report and diagnosis by a (iv) a qualified physician has determined meeting the requirements of this section as qualified physician that includes: with a reasonable degree of medical cer- to each defendant. (A) Evidence verifying that the diagnosing, tainty that the impairment of the exposed (2) TIMING.—For any asbestos or silica qualified physician has taken a detailed oc- person would not have occurred but for the claim pending on the date of enactment of cupational and exposure history from the ex- specific asbestos exposure; and this Act, a claimant shall file the written re- posed person or, if that person is deceased, (B) in the context of a silica claim, means port and supporting test results described in from a person who is knowledgeable about that— paragraph (1) not later than 180 days after the exposures that form the basis for the (i) a claimant shall identify— such date or not later than 60 days prior to claim, including identification of— (I) the specific silica product to which the the commencement of trial, whichever oc- (i) all of the exposed person’s places of em- exposed person was exposed; curs first. ployment and exposure to airborne contami- (II) the location and duration of such expo- (3) DEFENDANTS RIGHT TO CHALLENGE.—A nants (including asbestos, silica, and other sure; and defendant shall be afforded a reasonable op- disease-causing dusts, mists, fumes, and air- (III) the specific circumstances of such ex- portunity to challenge the adequacy of any borne contaminants) that can cause pul- posure; proffered prima facie evidence of impair- monary impairment; and (ii) such exposure— ment. (ii) the nature, duration, and level of each (I) was more than incidental contact with (4) DISMISSAL.—A claim shall be dismissed such exposure. the product and location; and without prejudice upon a finding of failure to (B) Evidence— (II) took place on a regular basis over an make the prima facie showing required under (i) verifying that the diagnosing, qualified extended period of time in physical prox- this section. physician has taken a detailed medical and imity to the exposed person; (c) NEW CLAIM REQUIRED INFORMATION.— smoking history, including a thorough re- (iii) the exposed person inhaled respirable (1) IN GENERAL.—Any asbestos claim or sili- view of— silica particles in sufficient quantities to be ca claim filed in a Federal or State court, on (I) the exposed person’s past and present capable of causing harm; and or after on the date of enactment of this Act medical problems; and (iv) a qualified physician has determined shall include a sworn information form con- (II) the most probable cause of each such with a reasonable degree of medical cer- taining the following information: medical problem; or tainty that the impairment of the exposed (A) The name, address, date of birth, social (ii) if the exposed person is deceased, from person would not have occurred but for the security number, and marital status of the a person who is knowledgeable regarding specific silica exposure. claimant. such exposed person’s medical and smoking (24) TOTAL LUNG CAPACITY.—The term (B) The name, last address, date of birth, history. ‘‘total lung capacity’’ means the volume of social security number, and marital status of (C) Evidence sufficient to demonstrate— gas contained in the lungs at the end of a the exposed person. (i) that at least 10 years have elapsed since maximal inspiration. (C) If the claimant alleges exposure to as- the exposed person’s first exposure to asbes- (25) VETERANS’ BENEFITS PROGRAM.—The bestos or silica through the testimony of an- tos; and term ‘‘veterans’ benefits program’’ means other person or other than by direct or by- (ii) the date of any such diagnosis. any program for benefits in connection with stander exposure to a product or products, (D) A determination by the diagnosing, military service administered by the Vet- the name, address, date of birth, social secu- qualified physician, on the basis of a medical erans’ Administration under title 38, United rity number, and marital status, for each examination and pulmonary function testing States Code. person by which claimant alleges exposure of the exposed person, or if the exposed per- (26) WORKERS’ COMPENSATION LAW.—The (hereafter in this subsection referred to as son is deceased, based upon the medical term ‘‘workers’ compensation law’’— the ‘‘index person’’) and the relationship of records of the deceased, that the claimant (A) means a law respecting a program ad- the claimant to each such person. has, or if deceased, that the claimant had a ministered by a State or the United States (D) For each alleged exposure of the ex- permanent respiratory impairment rating of to provide benefits, funded by a responsible posed person and for each index person— at least Class 2 as defined by, and evaluated employer or its insurance carrier, for occu- (i) the specific location and manner of each under, the AMA’s Guides to the Evaluation pational diseases or injuries or for disability such exposure; of Permanent Impairment. or death caused by occupational diseases or (ii) the beginning and ending dates of each (E) Evidence verifying that the exposed injuries; such exposure; and person has an ILO quality 1 chest x-ray (or a

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00062 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1197 quality 2 chest x-ray if the exposed person is (ii) the nature, duration, and level of each silica-related condition, other than a silica- deceased and a quality 1 chest x-ray does not such exposure. related cancer, in the absence of a prima exist) read by a certified B-reader as show- (B) Evidence— facie showing of physical impairment as a ing, according to the ILO scale— (i) verifying that the diagnosing, qualified result of a medical condition to which expo- (i) bilateral small irregular opacities (s, t, physician has taken a detailed medical and sure to silica was a substantial contributing or u) graded 1/0 or higher on the ILO scale; smoking history, including a thorough re- factor. (ii) bilateral pleural thickening graded b2 view of— (2) PRIMA FACIE SHOWING.—A prima facie or higher on the ILO scale including blunting (I) the exposed person’s past and present showing under paragraph (1) shall be made as of the costophrenic angle; or medical problems; and to each defendant and include a detailed nar- (iii) pathological asbestosis graded 1(B) or (II) the most probable cause of each such rative medical report and diagnosis by a higher under the criteria published in the medical problem; or qualified physician that includes: Asbestos-Associated Diseases, Special Issue (ii) if the exposed person is deceased, from (A) Evidence verifying that the diagnosing, of the Archives of Pathological and Labora- a person who is knowledgeable regarding qualified physician has taken a detailed oc- tory Medicine, Volume 106, Number 11, Ap- such exposed person’s medical and smoking cupational and exposure history from the ex- pendix 3 (October 8, 1982). history. posed person or, if that person is deceased, (F) A determination by the diagnosing, (C) Evidence sufficient to demonstrate— from a person who is knowledgeable about qualified physician that asbestosis or diffuse (i) that at least 10 years have elapsed since the exposures that form the basis for the pleural thickening is a substantial contrib- the exposed person’s first exposure to asbes- claim, including identification of— uting factor to the exposed person’s physical tos; and (i) all of the exposed person’s places of em- impairment, based at a minimum on a deter- (ii) the date of any such diagnosis of the ployment and exposure to airborne contami- mination that the claimant has— cancer. nants (including asbestos, silica, and other (i) either— (D) Evidence verifying that the exposed disease-causing dusts, mists, fumes, and air- (I) forced vital capacity below the pre- person has— borne contaminants) that can cause pul- dicted lower limit of normal and FEV–1/FVC (i) an ILO quality 1 chest x-ray (or a qual- monary impairment; and ratio (using actual values) at or above the ity 2 chest x-ray if the exposed person is de- (ii) the nature, duration, and level of each predicted lower limit of normal; or ceased and a quality 1 chest x-ray does not such exposure. (II) forced vital capacity below the pre- exist) read by a certified B-reader as show- (B) Evidence verifying that the diagnosing, dicted lower limit of normal and total lung ing, according to the ILO scale, bilateral qualified physician has taken a detailed capacity, by plethysmography or timed gas small irregular opacities (s, t, or u) graded 1/ medical and smoking history from the ex- dilution, below the predicted lower limit of 0 or higher on the ILO scale; or posed person (or if the exposed person is de- normal; and (ii) pathological asbestosis graded 1(B) or ceased, from the person most knowledgeable (ii) diffusing capacity of carbon monoxide higher under the criteria published in the of such history), including a thorough review below the lower limit of normal or below 80 Asbestos-Associated Diseases, Special Issue of— percent of predicted. of the Archives of Pathological and Labora- (i) the exposed person’s past and present (G) Verification that the diagnosing, quali- tory Medicine, Volume 106, Number 11, Ap- medical problems; and fied physician has concluded that the ex- pendix 3 (October 8, 1982). (ii) the most probable cause of each such posed person’s impairment was not more (E) Verification that the diagnosing, quali- medical problem. probably the result of causes other than as- fied physician has concluded that the ex- (C) A determination by the diagnosing, bestos exposure as revealed by the employ- posed person’s impairment was not more qualified physician that the claimant has— ment, medical, and smoking history of the probably the result of causes other than as- (i) an ILO quality 1 chest x-ray (or a qual- exposed person. Any verification that in- bestos as revealed by the employment, med- ity 2 chest x-ray if the exposed person is de- cludes a conclusion which states that the ical, and smoking history of the exposed per- ceased and a quality 1 chest x-ray does not medical findings and impairment are con- son. Any verification that includes a conclu- exist) read by a certified B-reader as show- sistent or compatible with asbestos exposure sion which states that the medical findings ing, according to the ILO scale, bilateral pre- or silica-related disease does not meet the and impairment are consistent or compatible dominantly nodular opacities (p, q, or r) oc- requirements of this subsection. with asbestos exposure or asbestos-related curring primarily in the upper lung fields, (H) Copies of— disease does not meet the requirements of graded 1/0 or higher; (i) the B-reading, pulmonary function tests this subsection. (ii) an ILO quality 1 chest X-ray (or a qual- (including printouts of the flow volume (F) Copies of— ity 2 chest X-ray if the exposed person is de- loops, volume time curves, DLCO graphs, and (i) the B-reading, pulmonary function tests ceased and a quality 1 chest X-ray does not data for all trials, and all other elements re- (including printouts of the flow volume exist) read by a certified B-reader as show- quired to demonstrate compliance with the loops, volume time curves, DLCO graphs, and ing, according to the ILO scale, A, B, or C equipment, quality, interpretation, and re- data for all trials, and all other elements re- sized opacities representing complicated sili- porting standards established in this Act); quired to demonstrate compliance with the cosis (also known as progressive massive fi- (ii) lung volume tests; equipment, quality, interpretation, and re- brosis); (iii) reports of x-ray examinations and di- porting standards established in this Act); (iii) pathological demonstration of classic agnostic imaging of the chest; (ii) lung volume tests; silicotic nodules exceeding 1 centimeter in (iv) pathology reports; and (iii) reports of x-ray examinations and di- diameter as set forth in 112 Archives of Pa- (v) any other testing reviewed by the diag- agnostic imaging of the chest; thology & Laboratory Medicine 673–720 (1988); nosing, qualified physician in reaching the (iv) pathology reports; and (iv) progressive massive fibrosis physician’s conclusions. (v) any other testing reviewed by the diag- radiologically established by large opacities (e) PRIMA FACIE EVIDENCE OF PHYSICAL IM- nosing, qualified physician in reaching the greater than 1 centimeter in diameter; or PAIRMENT FOR ASBESTOS-RELATED CANCER.— physician’s conclusions. (v) acute silicosis. (1) IN GENERAL.—No person shall bring or (f) PRIMA FACIE EVIDENCE OF PHYSICAL IM- (D) If the claimant is asserting a claim for maintain an asbestos claim related to an al- PAIRMENT FOR ASBESTOS-RELATED MESOTHE- silicosis, evidence verifying there has been a leged asbestos-related cancer, other than LIOMA.— sufficient latency period for the applicable mesothelioma, in the absence of a prima (1) IN GENERAL.—No person shall bring or type of silicosis. facie showing of a primary cancer for which maintain an asbestos claim related to al- (E) A determination by the diagnosing, asbestos exposure is a substantial contrib- leged mesothelioma in the absence of a qualified physician, on the basis of a per- uting factor. prima facie showing of an asbestos-related sonal medical examination and pulmonary (2) PRIMA FACIE SHOWING.—A prima facie malignant tumor with a primary site of ori- function testing of the exposed person, or if showing under paragraph (1) shall be made as gin in the pleura, the peritoneum, or peri- the exposed person is deceased, based upon to each defendant and include a detailed nar- cardium. the medical records of the deceased, that the rative medical report and diagnosis by a (2) PRIMA FACIE SHOWING.—A prima facie claimant has, or if deceased, had a perma- qualified physician that includes: showing under paragraph (1) shall be made as nent respiratory impairment rating of at (A) Evidence verifying that the diagnosing, to each defendant and include a report by a least Class 2 as defined by and evaluated pur- qualified physician has taken a detailed oc- qualified Board-certified pathologist certi- suant to the AMA’s Guides to the Evaluation cupational and exposure history from the ex- fying the diagnosis of mesothelioma and a of Permanent Impairment. posed person or, if that person is deceased, report by a qualified physician certifying (F) Verification that the diagnosing, quali- from a person who is knowledgeable about that the mesothelioma was not more prob- fied physician has concluded that the ex- the exposures that form the basis for the ably the result of causes other than asbestos posed person’s impairment was not more claim, including identification of— exposure as revealed by the employment, probably the result of causes other than sili- (i) all of the exposed person’s places of em- medical, and smoking history of the exposed ca exposure as revealed by the employment, ployment and exposure to airborne contami- person. medical, and smoking history of the exposed nants (including asbestos, silica, and other (g) PRIMA FACIE EVIDENCE OF PHYSICAL IM- person. Any verification that includes a con- disease-causing dusts, mists, fumes, and air- PAIRMENT FOR SILICA CLAIMS.— clusion which states that the medical find- borne contaminants) that can cause pul- (1) IN GENERAL.—No person shall bring or ings and impairment are consistent or com- monary impairment; and maintain a silica claim related to an alleged patible with silica exposure or silica–related

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Any verification that includes a con- any consent under subparagraph (A), a court (including printouts of the flow volume clusion which states that the medical find- may consolidate for trial only asbestos loops, volume time curves, DLCO graphs, and ings and impairment are consistent or com- claims or silica claims relating to the same data for all trials, and all other elements re- patible with silica exposure or silica–related exposed person and members of the house- quired to demonstrate compliance with the disease does not meet the requirements of hold of such exposed person. equipment, quality, interpretation, and re- this subsection. (2) CLASS ACTIONS.—No class action or any porting standards established in this Act); (F) Copies of— other form of mass aggregation claim filing (ii) lung volume tests; (i) the B-reading, pulmonary function tests relating to more than 1 exposed person, ex- (iii) reports of x-ray examinations and di- (including printouts of the flow volume cept claims relating to the exposed person agnostic imaging of the chest; loops, volume time curves, DLCO graphs, and and members of the household of such ex- (iv) pathology reports; and data for all trials, and all other elements re- posed person, shall be permitted for asbestos (v) any other testing reviewed by the diag- quired to demonstrate compliance with the or silica claims. nosing, qualified physician in reaching the equipment, quality, interpretation, and re- (3) AT DISCOVERY.—Any decision by a court physician’s conclusions. porting standards established in this Act); to consolidate claims under paragraph (1) (h) PRIMA FACIE EVIDENCE OF PHYSICAL IM- (ii) lung volume tests; shall not preclude consolidation of asbestos PAIRMENT FOR SILICA-RELATED CANCER.— (iii) reports of x-ray examinations and di- or silica claim cases by a court order for pre- (1) IN GENERAL.—No person shall bring or agnostic imaging of the chest; trial or discovery purposes. maintain a silica claim related to an alleged (iv) pathology reports; and (e) FORUM NON CONVENIENS.— silica-related cancer in the absence of a (v) any other testing reviewed by the diag- (1) IN GENERAL.—Any asbestos or silica prima facie showing of a primary cancer for nosing, qualified physician in reaching the claim filed on or after the date of enactment which exposure to the defendant’s silica is a physician’s conclusions. of this Act, if the court in which such claim substantial contributing factor. (i) COMPLIANCE WITH TECHNICAL STAND- is pending, on written motion of a party, (2) PRIMA FACIE SHOWING.—A prima facie ARDS.—Evidence relating to physical impair- finds that in the interest of justice and for showing under paragraph (1) shall be made as ment under this section, including pul- the convenience of the parties a claim or ac- to each defendant and include a detailed nar- monary function testing and diffusing stud- tion to which this Act applies would be more rative medical report and diagnosis by a ies— properly heard in a forum outside the State, qualified physician that includes: (1) shall comply with the technical rec- district, or division in which such claim was (A) Evidence verifying that the diagnosing, ommendations for examinations, testing pro- filed, the court shall— qualified physician has taken a detailed oc- cedures, quality assurance, quality control, (A) decline to exercise jurisdiction under cupational and exposure history from the ex- and equipment in the AMA’s Guides to the the doctrine of forum non conveniens; and posed person or, if that person is deceased, Evaluation of Permanent Impairment, the (B) shall stay or dismiss such claim. from a person who is knowledgeable about most current version of the Official State- (2) CONSIDERATIONS.—In determining the exposures that form the basis for the ments of the American Thoracic Society re- whether to grant a motion to stay or dismiss claim, including identification of— garding lung function testing, including gen- a claim under paragraph (1), a court shall (i) all of the exposed person’s places of em- eral considerations for lung function testing, consider whether— ployment and exposure to airborne contami- standardization of spirometry, standardiza- (A) an alternate forum exists in which such nants (including silica and other disease- tion of the measurement of lung volumes, claim or action may be tried; causing dusts, mists, fumes, and airborne standardization of the single-breath deter- (B) the alternate forum provides an ade- contaminants) that can cause pulmonary im- mination of carbon monoxide uptake in the quate remedy; pairment; and lung, and interpretative strategies for lung (C) maintenance of such claim in the court (ii) the nature, duration, and level of each testing in effect at the time of the perform- of the State in which the claim was filed such exposure. ance of any examination or test on the ex- would work a substantial injustice to the (B) Evidence verifying that the diagnosing, posed person required by this Act; moving party; qualified physician has taken a detailed (2) may not be based on testing or exami- (D) the alternate forum, as a result of the medical and smoking history from the ex- nations that violate any law, regulation, li- submission of the parties or otherwise, can posed person (or if the exposed person is de- censing requirement, or medical code of exercise jurisdiction over all the defendants ceased, from the person most knowledgeable practice of any State in which the examina- properly joined to such claim; of that history), including a thorough review (E) the balance of the private interests of tion, test, or screening was conducted; and of— the parties and the public interest of the (3) may not be obtained under the condi- (i) the exposed person’s past and present State in which such claim was filed predomi- tion that a claimant retains the legal serv- medical problems; and nate in favor of such claim being brought in ices of an attorney or law firm sponsoring (ii) the most probable cause of each such an alternate forum; and the examination, test, or screening. medical problem. (F) the stay or dismissal would not result (C) A determination by the diagnosing, SEC. 5. PROCEDURES. in unreasonable duplication or proliferation (a) NO PRESUMPTION AT TRIAL.—Evidence qualified physician that the claimant has— of litigation. relating to the prima facie showings required (i) an ILO quality 1 chest x-ray (or a qual- (3) WAIVER OF STATUTE OF LIMITATIONS DE- under section 4 shall not— ity 2 chest x-ray if the exposed person is de- FENSE.—A trial court may not abate or dis- (1) create any presumption that a claimant ceased and a quality 1 chest x-ray does not miss a claim under this subsection until a has an asbestos or silica-related injury or exist) read by a certified B-reader as show- defendant files with the court, or with the impairment; and ing, according to the ILO scale, bilateral pre- clerk of the court, a written stipulation (2) be conclusive as to the liability of any dominantly nodular opacities (p, q, or r) oc- that, with respect to a new action on such defendant. curring primarily in the upper lung fields, claim commenced by the plaintiff, the de- (b) ADMISSIBILITY OF EVIDENCE.—No evi- graded 1/0 or higher; dence shall be offered at a trial, and a jury fendant waives the right to assert a statute (ii) an ILO quality 1 chest X-ray (or a qual- shall not be informed of— of limitations defense in all other States, ity 2 chest X-ray if the exposed person is de- (1) the granting or denial of a motion to districts, or divisions in which such claim ceased and a quality 1 chest X-ray does not dismiss an asbestos or silica claim under the was not barred by limitations at the time exist) read by a certified B-reader as show- provisions of this Act; or such claim was filed in the State where such ing, according to the ILO scale, A, B, or C (2) the provisions of section 4 with respect claim was originally filed as necessary to ef- sized opacities representing complicated sili- to what constitutes a prima facie showing of fect a tolling of the limitations periods in cosis (also known as progressive massive fi- asbestos or silica-related impairment. those States — brosis); or (c) DISCOVERY.—Until such time as a trial (A) beginning on the date such claim was (iii) a pathological demonstration of clas- court enters an order determining that a originally filed; and sic silicotic nodules exceeding 1 centimeter claimant has established prima facie evi- (B) ending on the date— in diameter as set forth in 112 Archives of dence of impairment, no asbestos or silica (i) such claim is dismissed; or Pathology & Laboratory Medicine 673–720 claim shall be subject to discovery, except (ii) an abatement period of 1 year ends. (1988). discovery— (4) COURT DUTIES.—A court may not abate (D) Evidence sufficient to demonstrate— (1) related to establishing or challenging or dismiss a claim under paragraph (3) until (i) that at least 10 years have elapsed since such prima facie evidence; or a defendant files with the court, or with the the exposed person’s first exposure to silica; (2) by order of the trial court upon— clerk of the court, a written stipulation and (A) motion of 1 of the parties; and that, with respect to a new action on such (ii) the date of any such diagnosis of the (B) for good cause shown. claim commenced by the plaintiff in another cancer. (d) CONSOLIDATION.— State, district, or division, that the claimant (E) Verification that the diagnosing, quali- (1) AT TRIAL.— and the defendant may— fied physician has concluded that the ex- (A) IN GENERAL.—A court may consolidate (A) rely on responses to discovery already posed person’s impairment was not more for trial any number and type of asbestos or provided under the rules of civil procedure of

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00064 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1199 the State, district, or division in which such trial following motion, appeal or otherwise, SEC. 8. SEVERABILITY. claim was originally filed; and has not commenced with presentation of evi- If any provision of this Act, or the applica- (B) rely on any additional discovery that dence to the trier of fact as of the effective tion of such provision to any person or cir- may be conducted under the rules of civil date of this Act, except for enforcement of cumstance is held to be unconstitutional, procedure in another State, district, or divi- claims for which a final judgment has been the remainder of this Act, and the applica- sion. duly entered by a court and that is no longer tion of the provisions of such to any person (f) VENUE.— subject to any appeal or judicial review on or circumstance shall not be affected there- (1) IN GENERAL.—An asbestos or silica the effective date of this Act. by. claim filed after the date of enactment of (2) GREATER LIMITATIONS BY STATES.—Noth- SEC. 9. MISCELLANEOUS PROVISIONS. this Act may be filed only in the county of ing in this Act shall limit or preempt any (a) CONSTRUCTION WITH OTHER LAWS.—This the State or the district or division of the State law or precedent having the effect of Act shall not be construed to— United States where— imposing additional or greater limits or re- (1) affect the scope or operation of any (A) the claimant resided for a period of at strictions on the assertion or prosecution of workers’ compensation law or veterans’ ben- least 180 consecutive days immediately prior an asbestos or silica claim. efit program; to filing suit; or SEC. 6. STATUTE OF LIMITATIONS; 2–DISEASE (2) affect the exclusive remedy or subroga- (B) the exposed person had the most sub- RULE. tion provisions of any such law; or stantial cumulative exposure to asbestos for (a) STATUTE OF LIMITATIONS.— (3) authorize any lawsuit which is barred an asbestos claim or to silica for a silica (1) IN GENERAL.—An asbestos or silica by any such provision of law. claim, and that such exposure was a substan- claim not barred in a State as of the date of (b) CONSTITUTIONAL AUTHORITY.—The con- tial contributing factor to the asbestos or enactment of this Act, a claimant’s cause of stitutional authority for this Act is con- silica related impairment on which such action shall not accrue, nor shall the run- tained in Article I, section 8, clause 3 and Ar- claim is based. ning of limitations commence, prior to the ticle III, section 1 of the Constitution of the MPROPER VENUE.—With respect to as- (2) I earlier of the date— United States. bestos or silica claims pending as of the date (A) on which an exposed person received a SEC. 10. EFFECTIVE DATE. of enactment of this Act, and in which the medical diagnosis of an asbestos-related im- (a) IN GENERAL.—This Act applies to all as- trial, or any new trial or retrial following pairment or silica-related impairment; bestos or silica claims filed on or after the motion, appeal, or otherwise, has not com- (B) on which an exposed person discovered date of enactment of this Act. menced with presentation of evidence to the (b) PENDING PROCEEDINGS.—This Act also facts that would have led a reasonable per- trier of fact as of the date of enactment of applies to any pending asbestos or silica son to obtain a medical diagnosis with re- this Act, any claim as to which venue would claims in which a trial has not commenced spect to the existence of an asbestos-related not have been proper if the claim originally as of the date of enactment of this Act. impairment or silica-related impairment; or had been brought in accordance with para- graph (1) shall, not later than 90 days after (C) of death of the exposed person having SA 2792. Mr. CORNYN submitted an the date of enactment of this Act, be trans- an asbestos-related or silica-related impair- amendment intended to be proposed to ferred to the court of general civil jurisdic- ment. amendment SA 2746 proposed by Mr. (2) RULE OF CONSTRUCTION.—Nothing in this tion in the county, district, or division of the FRIST (for Mr. SPECTER (for himself and State in which the action is pending in section shall be construed to revive or ex- tend limitations with respect to any claim Mr. LEAHY)) to the bill S. 852, to create which either— a fair and efficient system to resolve (A) the claimant was domiciled at the time for asbestos-related impairment or silica-re- the asbestos or silica claim originally was lated impairment that was otherwise time- claims of victims for bodily injury filed; or barred as a matter of applicable State law as caused by asbestos exposure, and for (B) the exposed person had the most sub- of the date of enactment of this Act. other purposes; which was ordered to stantial cumulative exposure to asbestos for (3) NO EFFECT ON SETTLEMENT AGREE- lie on the table; as follows: MENTS.—Nothing in this section shall be con- an asbestos claim or to silica for a silica On page 121, lines 25 through page 122, line strued so as to adversely affect, impair, claim, and that such exposure was a substan- 1, strike ‘‘substantially equivalent to those limit, modify, or nullify any settlement tial contributing factor to the asbestos or of Libby, Montana’’ and insert ‘‘greater than silica related impairment on which the claim agreement with respect to an asbestos or the standard non-occupationally exposed is based. silica claim entered into before the date of population’’. (3) REMOVAL.— enactment of this Act. (A) IN GENERAL.—If a State court refuses or (b) 2–DISEASE RULE; DISTINCT CLAIMS.— SA 2793. Mr. CORNYN submitted an fails to apply the provisions of this Act, any (1) IN GENERAL.—An asbestos or silica amendment intended to be proposed to party in a civil action for an asbestos claim claim arising out of a non-malignant condi- amendment SA 2746 proposed by Mr. tion shall be a distinct cause of action, whol- may remove such action to a district court FRIST (for Mr. SPECTER (for himself and of the United States in accordance with ly separate from a claim for an asbestos-re- Mr. LEAHY)) to the bill S. 852, to create chapter 89 of title 28, United States Code. lated or silica-related cancer. a fair and efficient system to resolve (B) JURISDICTION OVER REMOVED ACTIONS.— (2) NO DAMAGES FOR FEAR.—No damages The district courts of the United States shall shall be awarded for fear or increased risk of claims of victims for bodily injury have jurisdiction of all civil actions removed future disease in any civil action asserting caused by asbestos exposure, and for under this paragraph, without regard to the an asbestos or silica claim. other purposes; which was ordered to amount in controversy and without regard to SEC. 7. EXPERTS. lie on the table; as follows: the citizenship or residence of the parties. (a) IN GENERAL.—A person who holds a On page 37, between lines 22 and 23, insert (C) REMOVAL BY ANY DEFENDANT.—A civil valid medical license in good standing in a the following: action may be removed to the district court State, but who is not licensed to practice (B) EXCEPTION.—The Administrator may by of the United States under this paragraph by medicine in that State, and who testifies, rule adopt a lower percentage limitation for any defendant without the consent of all de- whether by deposition, affidavit, live, or oth- particular classes of cases, if the Adminis- fendants. erwise, as a medical expert witness on behalf trator finds that— (D) REMAND.—A district court of the of any party in an asbestos or silica claim is (i) the percentage limitation otherwise ap- United States shall remand any civil action deemed to have a temporary license to prac- plicable under this subsection would result removed solely under this paragraph, unless tice medicine in the State in which the in unreasonably high compensation to rep- the court finds that— claim is pending solely for the purpose of resentatives of claimants in such cases; and (i) the State court failed to comply with providing such testimony and is subject to (ii) such limitation would not unduly limit procedures prescribed by law; or that extent to the authority of the medical the availability of representatives to claim- (ii) the failure to dismiss by the State licensing board or agency of that State. ants. court lacked substantial support in the (b) PENALTY FOR FALSE TESTIMONY.—If a (c) REASONABLE FEE FOR WORK ACTUALLY record before the State court. physician renders expert medical testimony PERFORMED.—In addition to paragraph (A), a (E) LIMITATION.—Civil actions in State that is false, intentionally misleading or de- representative of an individual may not re- court subject to this Act may not be re- ceptive, or that intentionally misstates the ceive a fee, unless— moved to any district court of the United relevant applicable standard of care, the (A) the representative submits to the Ad- States unless such removal is otherwise medical licensing board or agency of the ministrator appropriately detailed billing proper without regard to the provisions of State in which the claim is pending may documentation for the work actually per- this Act or is removed under this paragraph. take such action as is permitted under the formed in the course of representation of the (g) PREEMPTION.— laws and regulations of that State governing claimant; and (1) IN GENERAL.—This Act shall govern all the conduct of physicians. (B) the Administrator finds, based on the asbestos and silica claims filed in Federal or (c) RULE OF CONSTRUCTION.—This section amount of the award made to a claimant State courts on or after the effective date of shall not be construed to permit an out of under this Act and on billing documentation this Act, or which are pending in Federal or State physician to practice medicine in any submitted by such claimant’s representative, State courts on the effective date of this Act other State other than as provided in this that the fee to be awarded for the work actu- and in which the trial, or any new trial or re- section. ally performed on behalf of the claimant

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00065 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1200 CONGRESSIONAL RECORD — SENATE February 14, 2006 does not exceed 200 percent of a reasonable SA 2799. Mr. CORNYN submitted an amendment SA 2746 proposed by Mr. hourly fee for such work. amendment intended to be proposed to FRIST (for Mr. SPECTER (for himself and On page 37, line 23, strike ‘‘(3)’’ and insert amendment SA 2746 proposed by Mr. Mr. LEAHY)) to the bill S. 852, to create ‘‘(D)’’. FRIST (for Mr. SPECTER (for himself and a fair and efficient system to resolve SA 2794. Mr. CORNYN submitted an Mr. LEAHY)) to the bill S. 852, to create claims of victims for bodily injury amendment intended to be proposed to a fair and efficient system to resolve caused by asbestos exposure, and for amendment SA 2746 proposed by Mr. claims of victims for bodily injury other purposes; which was ordered to FRIST (for Mr. SPECTER (for himself and caused by asbestos exposure, and for lie on the table; as follows: Mr. LEAHY)) to the bill S. 852, to create other purposes; which was ordered to On page 271, line 4, strike ‘‘SCREENING,’’. a fair and efficient system to resolve lie on the table; as follows: On page 271, line 7, strike all beginning claims of victims for bodily injury On page 365, between lines 8 and 9, insert with ‘‘medical’’ through the comma on page 271, line 8. caused by asbestos exposure, and for the following: (i) INJUNCTION AFTER CONFIRMATION OF On page 272, line 10, strike all through page other purposes; which was ordered to BANKRUPTCY PLAN OF REORGANIZATION.— 277, line 6. lie on the table; as follows: (1) IN GENERAL.—Section On page 277, line 7, strike ‘‘(e)’’ and insert On page 277, line 6, strike ‘‘$600,000,000’’ and 524(g)(2)(B)(ii)(IV)(bb) of title 11, United ‘‘(c)’’. insert ‘‘$150,000,000’’. States Code, is amended by inserting after On page 279, line 7, strike ‘‘(f)’’ and insert ‘‘plan’’ the following: ‘‘, or, if such a vote is ‘‘(d)’’. SA 2795. Mr. CORNYN submitted an not obtained with respect to any such class On page 279, lines 9 and 10, strike ‘‘medical amendment intended to be proposed to of claimants so established, the plan satis- screening’’. amendment SA 2746 proposed by Mr. fies the requirements for confirmation of a On page 279, line 13, strike ‘‘(g)’’ and insert FRIST (for Mr. SPECTER (for himself and plan under section 1129(b) that would apply ‘‘(e)’’. Mr. LEAHY)) to the bill S. 852, to create to such class if the class did not accept the plan for purposes of section 1129(a)(8) (wheth- SA 2802. Mr. CORNYN submitted an a fair and efficient system to resolve amendment intended to be proposed to claims of victims for bodily injury er or not the class has accepted the plan)’’. (2) EFFECTIVE DATE; APPLICATION.—The amendment SA 2746 proposed by Mr. caused by asbestos exposure, and for amendment made by paragraph (1) shall take FRIST (for Mr. SPECTER (for himself and other purposes; which was ordered to effect on the date of enactment of this Act, Mr. LEAHY)) to the bill S. 852, to create lie on the table; as follows: and shall apply with respect to cases under a fair and efficient system to resolve On page 243, line 22, strike ‘‘5 years’’ and title 11 of the United States Code, which claims of victims for bodily injury insert ‘‘2 years, and in no case shall such were commenced before, on, or after such caused by asbestos exposure, and for total borrowing at any 1 time exceed date. $10,000,000,000.’’. other purposes; which was ordered to SA 2800. Mr. CORNYN submitted an lie on the table; as follows: SA 2796. Mr. CORNYN submitted an amendment intended to be proposed to Strike all after the enacting clause and in- amendment intended to be proposed to amendment SA 2746 proposed by Mr. sert the following: amendment SA 2746 proposed by Mr. FRIST (for Mr. SPECTER (for himself and SECTION 1. SHORT TITLE; TABLE OF CONTENTS. FRIST (for Mr. SPECTER (for himself and Mr. LEAHY)) to the bill S. 852, to create (a) SHORT TITLE.—This Act may be cited as Mr. LEAHY)) to the bill S. 852, to create a fair and efficient system to resolve the ‘‘Fairness in Asbestos Injury Resolution a fair and efficient system to resolve claims of victims for bodily injury Act of 2006’’ or the ‘‘FAIR Act of 2006’’. (b) TABLE OF CONTENTS.—The table of con- claims of victims for bodily injury caused by asbestos exposure, and for tents of this Act is as follows: caused by asbestos exposure, and for other purposes; which was ordered to Sec. 1. Short title; table of contents. other purposes; which was ordered to lie on the table; as follows: Sec. 2. Findings and purpose. lie on the table; as follows: On page 298, strike lines 16 and 17, and in- Sec. 3. Definitions. On page 69, line 11, strike ‘‘(A) IN GEN- sert the following: TITLE I—ASBESTOS CLAIMS ERAL.—’’ ‘‘(A) the trust qualifies as a trust under RESOLUTION On page 69, line 19, strike all through page section 201 of that Act; and Subtitle A—Asbestos Injury Claims 70, line 22. ‘‘(B) the trust does not file an election Resolution Corporation On page 118, line 6, strike all through page under section 410 of that Act. 120, line 4. On page 375, after line 23, insert the fol- Sec. 101. Establishment of Asbestos Injury lowing: Claims Resolution Corpora- SA 2797. Mr. CORNYN submitted an SEC. 410. OPT-OUT RIGHTS OF CERTAIN TRUSTS tion. amendment intended to be proposed to AND EFFECT OF OPT-OUT. Sec. 102. Advisory Committee on Asbestos Disease Compensation. amendment SA 2746 proposed by Mr. (a) OPT-OUT RIGHTS.—Any trust defined under section 201(8) that has been established Sec. 103. Medical Advisory Committee. FRIST (for Mr. SPECTER (for himself and or formed under a plan of reorganization Sec. 104. Claimant assistance. Mr. LEAHY)) to the bill S. 852, to create under chapter 11 of title 11, United States Sec. 105. Program startup. a fair and efficient system to resolve Code, confirmed by a duly entered order or Sec. 106. Authority of the Chief Executive claims of victims for bodily injury judgment of a court, which order or judg- Officer. caused by asbestos exposure, and for ment is no longer subject to any appeal or Sec. 107. Establishment of Corporation. other purposes; which was ordered to judicial review on the date of enactment of Sec. 108. Board of Directors; officers and em- ployees; conflicts. lie on the table; as follows: this Act, may elect not to be covered by this Act by filing written notice of such election Sec. 109. Powers; offices; tax laws; audit; an- On page 243, line 16, strike all through page to the Administrator not later than 90 days nual report. 243, line 22, and insert the following: after the date of enactment of this Act. Subtitle B—Asbestos Disease Compensation (2) FEDERAL SOURCES OF BORROWING.—The (b) EFFECT OF OPT-OUT.— Procedures Administrator may not borrow from the Fed- (1) IN GENERAL.—This Act nor any amend- Sec. 111. Essential elements of eligible eral Financing Bank or any other financing ment made by this Act shall apply to— source of the Federal Government. claim. (A) any trust that makes an election under Sec. 112. General rule concerning no-fault subsection (a); or SA 2798. Mr. CORNYN submitted an compensation. (B) any claim or future demand that has Sec. 113. Filing of claims. amendment intended to be proposed to been channeled to that trust. Sec. 114. Eligibility determinations and amendment SA 2746 proposed by Mr. (2) ASSETS AND OTHER RIGHTS AND CLAIMS.— claim awards. FRIST (for Mr. SPECTER (for himself and A trust that makes an election under sub- Sec. 115. Medical evidence auditing proce- Mr. LEAHY)) to the bill S. 852, to create section (a) shall retain all of its assets. The dures. a fair and efficient system to resolve contractual and other rights of a trust mak- Subtitle C—Medical Criteria claims of victims for bodily injury ing an election under subsection (a) and claims against other persons (whether held Sec. 121. Medical criteria requirements. caused by asbestos exposure, and for directly or indirectly by others for the ben- Subtitle D—Awards other purposes; which was ordered to efit of the trust), including the rights and Sec. 131. Amount. lie on the table; as follows: claims of the trust against insurers, shall be Sec. 132. Reimbursable medical monitoring. On page 315, line 22, strike ‘‘monetary’’. preserved and not abrogated by this Act. Sec. 133. Payment. On page 316, line 4, strike ‘‘substantial con- Sec. 134. Reduction in benefit payments for tributing factor’’ and insert ‘‘contributing SA 2801. Mr. CORNYN submitted an collateral sources. factor, in whole or in part,’’. amendment intended to be proposed to Sec. 135. State lien laws.

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00066 Fmt 4624 Sfmt 0655 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1201 TITLE II—ASBESTOS INJURY CLAIMS driving companies into bankruptcy, divert- industrial parts or components, equipment, RESOLUTION FUND ing resources from those who are truly sick, improvements to real property, and any Subtitle A—Asbestos Defendants Funding and endangering jobs and pensions. other material that contains asbestos in any Allocation (5) The scope of the asbestos litigation cri- physical or chemical form. sis cuts across every State and virtually (2) ASBESTOS CLAIM.— Sec. 201. Definitions. every industry. (A) IN GENERAL.—The term ‘‘asbestos Sec. 202. Authority and tiers. (6) The United States Supreme Court has claim’’ means any claim, premised on any Sec. 203. Subtiers. recognized that Congress must act to create theory, allegation, or cause of action for Sec. 204. Assessment administration. a more rational asbestos claims system. In damages or other relief presented in a civil Sec. 205. Stepdowns and funding holidays. action or bankruptcy proceeding, directly, Sec. 206. Accounting treatment. 1991, a Judicial Conference Ad Hoc Com- mittee on Asbestos Litigation, appointed by indirectly, or derivatively arising out of, Subtitle B—Asbestos Insurers Committee Chief Justice William Rehnquist, found that based on, or related to, in whole or part, the Sec. 210. Definition. the ‘‘ultimate solution should be legislation health effects of exposure to asbestos, in- Sec. 211. Establishment of Asbestos Insurers recognizing the national proportions of the cluding loss of consortium, wrongful death, Committee. problem . . . and creating a national asbes- and any derivative claim made by, or on be- Sec. 212. Duties of Asbestos Insurers Com- tos dispute resolution scheme . . .’’. The half of, any exposed person or any represent- mittee. Court found in 1997 in Amchem Products Inc. ative, spouse, parent, child, or other relative Sec. 213. Powers of Asbestos Insurers Com- v. Windsor, 521 U.S. 591, 595 (1997), that ‘‘[t]he of any exposed person. mittee. argument is sensibly made that a nationwide (B) EXCLUSION.—The term does not include Sec. 214. Personnel matters. administrative claims processing regime claims alleging damage or injury to tangible Sec. 215. Termination of Asbestos Insurers would provide the most secure, fair, and effi- property, or claims for benefits under a Committee. cient means of compensating victims of as- workers’ compensation law or veterans’ ben- Sec. 216. Expenses and costs of Commission. bestos exposure.’’ In 1999, the Court in Ortiz efits program. Subtitle C—Asbestos Injury Claims v. Fibreboard Corp., 527 U.S. 819, 821 (1999), (3) ASBESTOS CLAIMANT.—The term ‘‘asbes- Resolution Fund found that the ‘‘elephantine mass of asbestos tos claimant’’ means an individual who files Sec. 221. Establishment of Asbestos Injury cases . . . defies customary judicial adminis- a claim under section 113. Claims Resolution Fund. tration and calls for national legislation.’’ (4) CHIEF EXECUTIVE OFFICER.—The term Sec. 222. Management of the Fund. That finding was again recognized in 2003 by ‘‘Chief Executive Officer’’ means the Chief Sec. 223. Enforcement of payment obliga- the Court in Norfolk & Western Railway Co. Executive Officer for the Asbestos Injury tions. v. Ayers, 123 S. Ct. 1210 (2003). Claims Resolution Corporation appointed Sec. 224. Interest on underpayment or non- (7) This crisis, and its significant effect on under sections 101(b) and 109(b). payment. the health and welfare of the people of the (5) CIVIL ACTION.—The term ‘‘civil action’’ Sec. 225. Education, consultation, and moni- United States, on interstate and foreign means all suits of a civil nature in State or toring. commerce, and on the bankruptcy system, Federal court, whether cognizable as cases at Sec. 226. Oversight by the Secretary of the compels Congress to exercise its power to law or in equity or in admiralty, but does Treasury. regulate interstate commerce and create not include an action relating to any work- Sec. 227. Administrative funding. this legislative solution in the form of a na- ers’ compensation law, or a proceeding for tional asbestos injury claims resolution pro- benefits under any veterans’ benefits pro- TITLE III—JUDICIAL REVIEW gram to supersede all existing methods to gram. Sec. 301. Judicial review of procedures. compensate those injured by asbestos, except (6) COLLATERAL SOURCE COMPENSATION.— Sec. 302. Judicial review of award decisions. as specified in this Act. The term ‘‘collateral source compensation’’ Sec. 303. Judicial review of participants’ as- (8) This crisis has also imposed a delete- means the compensation that the claimant sessments. rious burden upon the United States bank- received, or is entitled to receive, from a de- Sec. 304. Other judicial challenges. ruptcy courts, which have assumed a heavy fendant or an insurer of that defendant, or Sec. 305. Stays, exclusivity, and constitu- burden of administering complicated and compensation trust as a result of a final tional review. protracted bankruptcies with limited per- judgment or settlement for an asbestos-re- Sec. 306. Representations to court. sonnel. lated injury that is the subject of a claim TITLE IV—MISCELLANEOUS PROVISIONS (b) PURPOSE.—The purpose of this Act is filed under section 113. Sec. 401. False information. to— (7) ELIGIBLE DISEASE OR CONDITION.—The Sec. 402. Effect on bankruptcy laws. (1) create a privately funded administra- term ‘‘eligible disease or condition’’ means, Sec. 403. Effect on other laws and existing tive scheme to provide the necessary re- to the extent that the illness meets the med- claims. sources for a fair and efficient system to re- ical criteria requirements established under Sec. 404. Effect on insurance and reinsur- solve asbestos injury claims that will pro- subtitle C of title I, asbestosis, severe asbes- ance contracts. vide compensation for legitimate present tosis disease, disabling asbestosis disease, Sec. 405. Additional funding or return to and future claimants of asbestos exposure as mesothelioma, and lung cancer. court. provided in this Act; (8) FUND.—The term ‘‘Fund’’ means the As- Sec. 406. Rules of construction relating to li- (2) provide compensation to those present bestos Injury Claims Resolution Fund estab- ability of the United States and future victims based on the severity of lished under section 221. Government. their injuries, while establishing a system (9) INSURANCE RECEIVERSHIP PROCEEDING.— Sec. 407. Violations of environmental health flexible enough to accommodate individuals The term ‘‘insurance receivership pro- and safety requirements. whose conditions worsen; ceeding’’ means any State proceeding with Sec. 408. Nondiscrimination of health insur- (3) relieve the Federal and State courts of respect to a financially impaired or insol- ance. the burden of the asbestos litigation; and vent insurer or reinsurer including the liq- Sec. 409. Corporate responsibility for annual (4) increase economic stability by resolv- uidation, rehabilitation, conservation, super- and financial reports. ing the asbestos litigation crisis that has vision, or ancillary receivership of an insurer Sec. 410. Opt-out rights of certain trusts and bankrupted companies with asbestos liabil- under State law. effect of opt-out. ity, diverted resources from the truly sick, (10) LAW.—The term ‘‘law’’ includes all and endangered jobs and pensions. law, judicial or administrative decisions, TITLE V—EXPEDITED CONGRESSIONAL SEC. 3. DEFINITIONS. rules, regulations, or any other principle or ACTION In this Act, the following definitions shall action having the effect of law. Sec. 501. Congressional action regarding apply: (11) PARTICIPANT.— modifications of the Fund. (1) ASBESTOS.—The term ‘‘asbestos’’ in- (A) IN GENERAL.—The term ‘‘participant’’ Sec. 502. Congressional approval procedure. cludes— means any person subject to the funding re- SEC. 2. FINDINGS AND PURPOSE. (A) chrysotile; quirements of title II, including— (a) FINDINGS.—Congress finds the fol- (B) amosite; (i) any defendant participant subject to li- lowing: (C) crocidolite; ability for payments under subtitle A of that (1) Millions of Americans have been ex- (D) tremolite asbestos; title; posed to forms of asbestos that can have dev- (E) winchite asbestos; (ii) any insurer participant subject to a astating health effects. (F) richterite asbestos; payment under subtitle B of that title; and (2) Various injuries can be caused by expo- (G) anthophyllite asbestos; (iii) any successor in interest of a partici- sure to some forms of asbestos, including (H) actinolite asbestos; pant. some forms of cancer. (I) any of the minerals listed under sub- (B) EXCEPTION.— (3) The injuries caused by asbestos can paragraphs (A) through (H) that has been (i) IN GENERAL.—A defendant participant have latency periods of up to 40 years, and chemically treated or altered, and any shall not include any person protected from even limited exposure to some forms of as- asbestiform variety, type, or component any asbestos claim by reason of an injunc- bestos may result in injury in some cases. thereof; and tion entered in connection with a plan of re- (4) Asbestos litigation has had a significant (J) asbestos-containing material, such as organization under chapter 11 of title 11, detrimental effect on the country’s economy, asbestos-containing products, automotive or United States Code, that has been confirmed

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ESTABLISHMENT OF ASBESTOS INJURY ment the provisions of this Act. apply to a person who may be liable under CLAIMS RESOLUTION CORPORA- TION. (G) making such expenditures as may be subtitle A of title II based on prior asbestos necessary and appropriate in the administra- (a) IN GENERAL.— expenditures related to asbestos claims that tion of this Act; (1) ESTABLISHMENT.—There is established are not covered by an injunction described an Asbestos Injury Claims Resolution Cor- (H) excluding evidence and disqualifying or under clause (i). poration (referred to in this Act as the ‘‘Cor- debarring any attorney, physician, provider (12) PERSON.—The term ‘‘person’’— poration’’) to undertake a program on com- of medical or diagnostic services, including (A) means an individual, trust, firm, joint pensation for injuries suffered by exposure to laboratories and others who provide evidence stock company, partnership, association, in- asbestos. The Corporation shall undertake in support of a claimant’s application for surance company, reinsurance company, or the performance of the duties in this Act. compensation where the Chief Executive Of- corporation; and ficer determines that materially false, fraud- (B) does not include the United States, any (2) PURPOSE.—The purpose of the Corpora- tion is to provide timely, fair compensation, ulent, or fictitious statements or practices State or local government, or subdivision have been submitted or engaged in by such thereof, including school districts and any in the amounts and under the terms specified in this Act, on a no-fault basis and in a non- individuals or entities; and general or special function governmental (I) having all other powers incidental, nec- unit established under State law. adversarial manner, to individuals whose health has been adversely affected by expo- essary, or appropriate to carrying out the (13) STATE.—The term ‘‘State’’ means any functions of the Corporation. State of the United States and also includes sure to asbestos. Compensation amounts pro- vided by the Corporation shall be subject to (2) CERTAIN ENFORCEMENTS.—For each in- the District of Columbia, Commonwealth of fraction relating to paragraph (1)(H), the Puerto Rico, the Northern Mariana Islands, the availability of funds in the Asbestos In- jury Claims Resolution Fund. Chief Executive Officer also refers such mat- the Virgin Islands, Guam, American Samoa, ters to the Attorney General who may im- (3) EXPENSES.—There shall be available and any other territory or possession of the pose a civil penalty not to exceed $10,000 on United States or any political subdivision of from the Asbestos Injury Claims Resolution Fund to the Chief Executive Officer sums any person or entity found to have sub- any of the entities under this paragraph. mitted or engaged in a materially false, (14) SUBSTANTIALLY CONTINUES.—The term reasonably necessary for the administrative and legal expenses of the Corporation, not to fraudulent, or fictitious statement or prac- ‘‘substantially continues’’ means that the tice under this Act. The Attorney General business operations have not been signifi- exceed $100,000,000 for the first 6 years, $50,000,000 for the following 10 years, and shall prescribe appropriate regulations to cantly modified by the change in ownership. implement paragraph (1)(H). (15) SUCCESSOR IN INTEREST.—The term $25,000,000 thereafter. (3) SELECTION OF DEPUTY CHIEF EXECUTIVE ‘‘successor in interest’’ means any person (b) APPOINTMENT OF THE CHIEF EXECUTIVE OFFICERS.—The Chief Executive Officer shall that in 1 or a series of transactions, acquires OFFICER.— select a Deputy Chief Executive Officer for all or substantially all of the assets and (1) IN GENERAL.—The Chief Executive Offi- Claims Administration to carry out the properties (including, without limitation, cer shall be appointed by the Board of Direc- Chief Executive Officer’s responsibilities under section 363(b) or 1123(b)(4) of title II, tors of the Asbestos Injury Claims Resolu- under this title and a Deputy Chief Execu- United States Code), and substantially con- tion Corporation, to serve for a term of 5 tive Officer for Fund Management to carry tinues the business operations, of a partici- years. out the Chief Executive Officer’s responsibil- pant. The factors to be considered in deter- (2) REMOVAL.—The Chief Executive Officer ities under title II of this Act. The Deputy mining whether a person is a successor in in- may be removed at any time by the Board of Chief Executive Officers shall report directly terest include— Directors for any reason the Board deter- (A) retention of the same facilities or loca- mines sufficient. to the Chief Executive Officer. (d) EXPEDITIOUS DETERMINATIONS.—The tion; (c) DUTIES OF CHIEF EXECUTIVE OFFICER.— Chief Executive Officer shall prescribe rules (1) IN GENERAL.—The Chief Executive Offi- (B) retention of the same employees; to expedite claims for asbestos claimants (C) maintaining the same job under the cer shall be responsible for— (A) processing claims for compensation for with exigent circumstances. same working conditions; (e) AUDIT AND PERSONNEL REVIEW PROCE- asbestos-related injuries and paying com- (D) retention of the same supervisory per- DURES.—The Chief Executive Officer shall es- sonnel; pensation to eligible claimants under the tablish audit and personnel review proce- (E) continuity of assets; criteria and procedures established under dures for evaluating the accuracy of eligi- (F) production of the same product or offer title I; bility recommendations of agency and con- of the same service; (B) determining, levying, and collecting as- tract personnel. (G) retention of the same name; sessments on participants under title II; (f) PRIVACY OF RECORDS.— (H) maintenance of the same customer (C) appointing or contracting for the serv- (1) IN GENERAL.—The Corporation shall base; ices of such personnel, making such expendi- adopt written procedures that are at least as (I) identity of stocks, stockholders, and di- tures, and taking any other actions as may protective of the privacy of records under rectors between the asset seller and the pur- be necessary and appropriate to carry out section 522a of title 5, United States Code chaser; or the responsibilities of the Corporation, in- (commonly referred to as the Privacy Act of (J) whether the successor holds itself out cluding entering into cooperative agree- 1974), that shall govern the availability of as continuation of previous enterprise, but ments with other Federal agencies or State records to claimants, participants, and the expressly does not include whether the per- agencies and entering into contracts with public of the Corporation, including the As- son actually knew of the liability of the par- non-governmental entities; bestos Insurers Committee within 180 days ticipant under this Act. (D) conducting such audits and additional after the date of enactment of this Act. (16) VETERANS’ BENEFITS PROGRAM.—The oversight as necessary to assure the integ- (g) PUBLICATION OF WRITTEN PROCEDURES.— term ‘‘veterans’ benefits program’’ means rity of the program; The Chief Executive Officer shall publish in any program for benefits in connection with (E) managing the Asbestos Injury Claims a newspaper with a circulation of at least military service administered by the Vet- Resolution Fund established under section 500,000 and on the Internet any written pro- erans’ Administration under title 38, United 221, including— cedures or rules promulgated or adopted States Code. (i) administering, in a fiduciary capacity, under this Act. (17) WORKERS’ COMPENSATION LAW.—The the assets of the Fund for the exclusive pur- SEC. 102. ADVISORY COMMITTEE ON ASBESTOS term ‘‘workers’ compensation law’’— pose of providing benefits to asbestos claim- DISEASE COMPENSATION. (A) means a law respecting a program ad- ants and their beneficiaries; (a) ESTABLISHMENT.— ministered by a State or the United States (ii) defraying the reasonable expenses of (1) IN GENERAL.—Not later than 120 days to provide benefits, funded by a responsible administering the Fund; after the date of enactment of this Act, the employer or its insurance carrier, for occu- (iii) investing the assets of the Fund in ac- Chief Executive Officer shall establish an pational diseases or injuries or for disability cordance with section 222(b); Advisory Committee on Asbestos Disease or death caused by occupational diseases or (iv) retaining advisers, managers, and Compensation (hereinafter the ‘‘Advisory injuries; custodians who possess the necessary facili- Committee’’). (B) includes the Longshore and Harbor ties and expertise to provide for the skilled (2) COMPOSITION AND APPOINTMENT.—The Workers’ Compensation Act (33 U.S.C. 901 et and prudent management of the Fund, to as- Advisory Committee shall be composed of 24 seq.) and chapter 81 of title 5, United States sist in the development, implementation and members, appointed as follows: Code; and maintenance of the Fund’s investment poli- (A) The Majority and Minority Leaders of (C) does not include the Act of April 22, cies and investment activities, and to pro- the Senate, the Speaker of the House, and 1908 (45 U.S.C. 51 et seq.), commonly known vide for the safekeeping and delivery of the the Minority Leader of the House shall each as the Employers’ Liability Act, or damages Fund’s assets; and appoint 2 members. Of the 2—

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(i) 1 shall be selected to represent the in- ministrative support as is reasonably nec- (d) ATTORNEY’S FEES.— terests of claimants; and essary to enable it to perform its functions. (1) IN GENERAL.—Notwithstanding any con- (ii) 1 shall be selected to represent the in- (d) EXPENSES.—Members of the Advisory tract, the representative of an individual terests of participants. Committee, other than full-time employees may not receive, for services rendered in (B) The Chief Executive Officer shall ap- of the United States, while attending meet- connection with an asbestos claim or the point 16 members, who shall be individuals ings of the Advisory Committee or while oth- claim of an individual under this Act, more with qualifications and expertise in occupa- erwise serving at the request of the Chief Ex- than 5 percent of a final award made (wheth- tional or pulmonary medicine, occupational ecutive Officer, and while serving away from er by the Chief Executive Officer initially or health, workers’ compensation programs, fi- their homes or regular places of business, as a result of administrative or appellate re- nancial administration, investment of funds, shall be allowed travel and meal expenses, view) under this Act on such claim. program auditing, or other relevant fields. including per diem in lieu of subsistence, as (2) EXCEPTION.—The Chief Executive Offi- (3) QUALIFICATIONS.—All of the members authorized by section 5703 of title 5, United cer may by rule adopt a lower percentage described in paragraph (2) shall have exper- States Code, for individuals in the Govern- limitation for particular classes of cases if tise or experience relevant to the asbestos ment serving without pay. the Chief Executive Officer finds that— compensation program, including experience SEC. 103. MEDICAL ADVISORY COMMITTEE. (A) the percentage limitation otherwise or expertise in diagnosing asbestos-related (a) IN GENERAL.—The Chief Executive Offi- applicable under this paragraph would result diseases and conditions, assessing asbestos cer shall establish a Medical Advisory Com- in unreasonably high compensation to claim- exposure and health risks, filing asbestos mittee to provide expert advice regarding ants’ representatives in such cases; and claims, administering a compensation or in- medical issues arising under the statute. (B) such limitation would not unduly limit surance program, or as actuaries, auditors, (b) QUALIFICATIONS.—None of the members the availability of representatives to claim- or investment managers. None of the mem- of the Medical Advisory Committee shall be ants. bers described in paragraph (2)(B) shall be in- individuals who, for each of the 5 years be- (3) REASONABLE FEE FOR WORK ACTUALLY dividuals who, for each of the 5 years before fore their appointments, earned more than 15 AND REASONABLY PERFORMED.—In addition to their appointments, earned more than 15 per- percent of their income by serving in mat- the provisions specified in paragraphs (1) and cent of their income by serving in matters ters related to asbestos litigation as consult- (2), a representative of an individual may not related to asbestos litigation as consultants ants or expert witnesses. receive a fee unless— or expert witnesses. SEC. 104. CLAIMANT ASSISTANCE. (A) the representative submits to the Chief (b) DUTIES.—The Advisory Committee shall (a) ESTABLISHMENT.—Not later than 180 Executive Officer appropriately detailed bill- advise the Chief Executive Officer on— days after the enactment of this Act, the ing documentation for the work actually and (1) claims filing and claims processing pro- Chief Executive Officer shall establish a reasonably performed in the course of rep- cedures; comprehensive asbestos claimant assistance resentation of the claimant; and (2) claimant assistance programs; program to— (B) the Chief Executive Officer finds that (3) audit procedures and programs to en- (1) publicize and provide information to po- the fee to be awarded is for work actually sure the quality and integrity of the com- tential claimants about the availability of and reasonably performed on behalf of the pensation program; benefits for eligible claimants under this claimant and does not exceed 200 percent of (4) the development of a list of industries, Act, and the procedures for filing claims and a reasonable hourly fee for such work. occupations and time periods for which there for obtaining assistance in filing claims; (4) PENALTY.—Any representative of an as- is a presumption of substantial occupational (2) provide assistance to potential claim- bestos claimant who violates this subsection exposure to asbestos; ants in preparing and submitting claims, in- shall be fined not more than the greater of— (5) recommended analyses or research that cluding assistance in obtaining the docu- (A) $5,000; or should be conducted to evaluate past claims mentation necessary to support a claim; (B) twice the amount received by the rep- and to project future claims under the pro- (3) respond to inquiries from claimants and resentative for services rendered in connec- gram; potential claimants; tion with each such violation. (6) the annual report required to be sub- (4) provide training with respect to the ap- SEC. 105. PROGRAM STARTUP. mitted to Congress under section 405; and plicable procedures for the preparation and (a) INTERIM WRITTEN PROCEDURES.—Not (7) such other matters related to the imple- filing of claims to persons who provide as- later than 90 days after the date of enact- mentation of this Act as the Chief Executive sistance or representation to claimants; and ment of this Act, the Chief Executive Officer Officer considers appropriate. (5) provide for the establishment of a shall adopt interim written procedures for (c) OPERATION OF THE COMMITTEE.— website where claimants may access all rel- the processing of claims under this title and (1) Each member of the Advisory Com- evant forms and information. the operation of the Fund under title II, in- mittee shall be appointed for a term of 3 (b) CONTRACTS.—The claimant assistance cluding procedures for the expediting of exi- years, except that, of the members first ap- program may be carried out in part through gent claims. pointed— contracts with labor organizations, commu- (b) EXIGENT HEALTH CLAIMS.— (A) 8 shall be appointed for a term of 1 nity-based organizations, and other entities (1) IN GENERAL.—The Chief Executive Offi- year; which represent or provide services to poten- cer shall develop procedures to provide for an (B) 8 shall be appointed for a term of 2 tial claimants, except that such organiza- expedited process to categorize, evaluate, years; and tions may not have a financial interest in and pay exigent health claims. Such proce- (C) 8 shall be appointed for a term of 3 the outcome of claims filed with the Office. dures shall include, pending adoption of final years, as determined by the Chief Executive (c) LEGAL ASSISTANCE.— written procedures, adoption of interim writ- Officer at the time of appointment. (1) IN GENERAL.—As part of the program es- ten procedures as needed for the processing (2) Any member appointed to fill a vacancy tablished under subsection (a), the Chief Ex- of exigent claims. occurring before the expiration of the term ecutive Officer shall establish a legal assist- (2) ELIGIBLE EXIGENT HEALTH CLAIMS.—A shall be appointed only for the remainder of ance program to provide assistance to asbes- claim shall qualify for treatment as an exi- such term. tos claimants concerning legal representa- gent health claim if the claimant is living (3) The Chief Executive Officer shall des- tion issues. and the claimant provides— ignate a Chairperson and Vice Chairperson (2) LIST OF QUALIFIED ATTORNEYS.—As part (A) documentation that a physician has di- from among members of the Advisory Com- of the program, the Chief Executive Officer agnosed the claimant as having mesothe- mittee appointed under subsection (a)(2)(B). shall maintain a roster of qualified attorneys lioma; or (4) The Advisory Committee shall meet at who have agreed to provide pro bono services (B) a declaration or affidavit, from a physi- the call of the Chairperson or the majority of to asbestos claimants under rules established cian who has examined the claimant within its members, and at a minimum shall meet by the Chief Executive Officer. The claim- 120 days before the date of such declaration at least 4 times per year during the first 5 ants shall not be required to use the attor- or affidavit, that the physician has diag- years of the asbestos compensation program, neys listed on such roster. nosed the claimant as being terminally ill and at least 2 times each year thereafter. (3) NOTICE.— from an asbestos-related illness and having a (5) The Chief Executive Officer shall pro- (A) IN GENERAL.—The Chief Executive Offi- life expectancy of less than 1 year. vide to the Committee such information as is cer shall provide asbestos claimants with no- (3) SPECIAL EXPEDITED PROCEDURES FOR necessary and appropriate for the Committee tice of, and information relating to— PENDING MALIGNANT MESOTHELIOMA ASBESTOS to carry out its responsibilities under this (i) pro bono services for legal assistance CLAIMS.— section. The Chief Executive Officer may, available to those claimants; and (A) IN GENERAL.—An individual who has an upon request of the Advisory Committee, se- (ii) any limitations on attorneys fees for asbestos claim pending in any Federal or cure directly from any Federal, State, or claims filed under this title. State court on the enactment date of this local department or agency such information (B) NOTICE BY ATTORNEYS.—Before a person Act and who has documentation from a as may be necessary and appropriate to en- becomes a client of an attorney with respect board certified pathologist that the patholo- able the Advisory Committee to carry out its to an asbestos claim, that attorney shall gist has diagnosed the claimant with malig- duties under this section. provide notice to that person of pro bono nant mesothelioma may file a claim for com- (6) The Chief Executive Officer shall pro- services for legal assistance available for pensation under the special expedited provi- vide the Advisory Committee with such ad- that claim. sions of subparagraph (B).

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(B) EXPEDITED CLAIMS.—An exigent claim (2) PURSUAL OF MESOTHELIOMA CLAIMS IN reasonably performed in the course of rep- filed under subparagraph (A) shall be proc- FEDERAL COURT.— resentation of the claimant; and essed for expedited decision if the indi- (A) IN GENERAL.—Notwithstanding any (II) the Chief Executive Officer finds that vidual— other provision of this Act, if, not later than the fee to be awarded is for work actually (i) provides the documentation required by 1 year after the date of enactment of this and reasonably performed on behalf of the subparagraph (A); Act, the Chief Executive Officer cannot cer- claimant and does not exceed 200 percent of (ii) attests that he has not received an tify to Congress that the Fund is operational a reasonable hourly fee for such work. award from any source for malignant meso- and procedures are in place to review and (C) PENALTY.—Any representative of an as- thelioma or, if he has, the specifics of that pay mesothelioma claims at a reasonable bestos claimant who violates this paragraph award; and rate, each person that has filed a mesothe- shall be fined not more than the greater of— (iii) attests that he had an asbestos claim lioma claim stayed under paragraph (1)(A), (i) $5,000; or for malignant mesothelioma pending in a or with such a claim arising after the date of (ii) twice the amount received by the rep- Federal or State court on the date of enact- enactment of this Act, may pursue that resentative for services rendered in connec- ment of this Act and provides documentation claim under the conditions described in para- tion with each such violation. of that pending asbestos claim, including graph (3) in a Federal district court located (4) OFFSET.— any response to that claim by a defendant within— (A) DEFINITION.—In this paragraph, the and any court orders. (i) the State of residence of the claimant; term ‘‘asbestos expenditure’’ has the same (C) DECISION.—Within 90 days after the re- or meaning given the term ‘‘prior asbestos ex- ceipt of the information required by subpara- (ii) the State in which the asbestos expo- penditure’’ in paragraph (7) of section 201, graphs (A) and (B), the Chief Executive Offi- sure occurred. but without regard to the limit on the date cer shall determine if that information is (B) DEFENDANTS NOT FOUND.—If any defend- of payment expressed in that paragraph. sufficient to meet the medical criteria of ant cannot be found in the State described in (B) OFFSET ON OBLIGATION.—Asbestos ex- section 121(d)(10), ‘‘Malignant Level 10’’, and clause (i) or (ii) of subparagraph (A), the penditures incurred by a participant as a re- shall issue a decision to the claimant. If the claim may be pursued only against that de- sult of this subsection shall be offset from information is insufficient, the Chief Execu- fendant in the Federal district court located the participant’s obligations to the Fund and tive Officer shall state the reasons with par- within any State in which the defendant from defendant or insurance participants’ ticularity and offer assistance to the claim- may be found. total obligations to the Fund. ant of the type provided under section 104, (C) DETERMINATION OF MOST APPROPRIATE SEC. 106. AUTHORITY OF THE CHIEF EXECUTIVE ‘‘Claimant Assistance’’, to cure the insuffi- FORUM.—If a person alleges that the asbestos OFFICER. ciency in an expeditious manner. exposure occurred in more than 1 Federal The Chief Executive Officer on any matter (D) AVAILABILITY OF PROCEDURE.—The ex- district the trial court shall determine which within the jurisdiction of the Chief Execu- pedited procedures of this paragraph shall be Federal district is the most appropriate tive Officer under this Act may subpoena available for malignant mesothelioma forum for the claim. If the court determines persons to compel testimony, records, and claims filed within 1 year of the date of en- that another forum would be the most appro- other information relevant to the respon- actment of this Act. priate forum for a claim, the court shall dis- sibilities of the Chief Executive Officer under (4) ADDITIONAL EXIGENT HEALTH CLAIMS.— miss the claim. Any otherwise applicable this section. The subpoena may be enforced The Chief Executive Officer may, in final statute of limitations shall be tolled begin- in appropriate proceedings in the United written procedures issued under section ning on the date the claim was filed and end- States district court for the district in which 101(c), designate additional categories of ing on the date the claim is dismissed under the person to whom the subpoena was ad- claims that qualify as exigent health claims this subparagraph. dressed resides, was served, or transacts under this subsection. (D) CREDIT OF CLAIM AND EFFECT OF OPER- business. (c) EXTREME FINANCIAL HARDSHIP CLAIMS.— ATIONAL FUND.—If an asbestos claim is pur- SEC. 107. ESTABLISHMENT OF CORPORATION. The Chief Executive Officer shall, in final sued in Federal court in accordance with this (a) FEDERAL CHARTER.—There is estab- written procedures issued under section paragraph, any recovery by the claimant lished a corporation to be known as the As- 101(c), designate categories of claims to be shall be a collateral source compensation for bestos Injury Claims Resolution Corporation handled on an expedited basis as a result of purposes of section 134. If the Chief Execu- (‘‘Corporation’’). extreme financial hardship. tive Officer subsequently certifies to Con- (b) NATURE OF CORPORATION.—The Corpora- (d) INTERIM CHIEF EXECUTIVE OFFICER.— Until a Chief Executive Officer is appointed gress that the Fund has become operational tion is a nonprofit corporation and shall by the Board of Directors, the President and the procedures are in place to review and have no capital stock. The Corporation is shall appoint an Interim Chief Executive Of- pay asbestos claims at a reasonable rate, any not an agency or establishment of the United ficer who shall have all the authority con- claim in a civil action in Federal court that States Government. ferred by this Act on the Chief Executive Of- is not actually on trial before a jury which (c) TERMINATION OF CORPORATION.—The ficer and who shall be deemed to be the Chief has been impaneled and presentation of evi- Corporation shall dissolve 40 years after the Executive Officer for the purposes of this dence has commenced, but before its delib- date of enactment of this Act, unless dis- Act. Before final written procedures are pro- eration, or before a judge and is at the pres- solved sooner by the Board. All remaining mulgated relating to claims processing, the entation of evidence, shall be deemed a rein- funds held by the Corporation shall be dis- Interim Chief Executive Officer may stated claim against the Fund and the civil tributed to the defendant participants and prioritize claims processing, without regard action before the Federal or State court insurer participants in proportion to the per- to the time requirements under subtitle B, shall be null and void. If the Chief Executive centage of assessments paid into the Cor- based on severity of illness and likelihood Officer tenders an award to a claimant, any poration. that the illness in question was exposed by claim in a civil action in Federal court that SEC. 108. BOARD OF DIRECTORS; OFFICERS AND exposure to asbestos. has not yet resulted in a final judgment and EMPLOYEES; CONFLICTS. (e)TRANSFER OF JURISDICTION OF CLAIMS.— award for the plaintiff shall be deemed a re- (a) BOARD OF DIRECTORS.—There shall be in (1) IN GENERAL.— instated claim and the civil action before the the Corporation a Board of Directors. The (A) TRANSFER OF JURISDICTION.—Notwith- Federal court shall be null and void. Board shall appoint the Chief Executive Offi- standing any other provision of this Act, ex- (3) LIMITS ON CASES.—In any action per- cer and formulate the policies of the Cor- clusive jurisdiction for the resolution of any mitted under paragraph (2), the following re- poration. asbestos claim pending as of the date of en- strictions shall apply: (b) APPOINTMENT.—The Corporation shall actment of this Act or of any subsequently (A) AWARD VALUES.—Relief awarded in an have a Board of Directors (‘‘Board’’), con- filed asbestos claim, shall be transferred to action permitted under paragraph (2) shall sisting of 7 members. The Board shall be ap- the Asbestos Claims Resolution Corporation, not exceed the amount of compensation au- pointed as follows: other than a claim for which a verdict or thorized to be awarded under this Fund to a (1) DESIGNATED MEMBERS.—The Secretary final order or judgment has been entered by claimant under Malignant Level VII. of the Treasury, the Attorney General, and a court before the date of enactment of this (B) ATTORNEYS’ FEES.— the Secretary of Labor shall serve as mem- Act. The procedures under section 113 shall (i) IN GENERAL.—Notwithstanding any con- bers of the Board. be followed in order to effectuate the trans- tract, the representative of an individual (2) APPOINTED MEMBERS.—The remaining 4 fer. may not receive, for services rendered in members of the Board shall be appointed by (B) PENDING COURT PROCEEDINGS.—In order connection with an action permitted under the President. The members of the Board to effectuate the transfer of jurisdiction, any paragraph (2), more than 20 percent of a final shall not, by reason of such membership, be Federal or State court with a pending or sub- award made as a result of such action. deemed to be officers or employees of the sequently filed asbestos claim is required to (ii) REASONABLE FEE FOR WORK ACTUALLY United States. enter a judgment of dismissal on any such PERFORMED.—In addition to the limitation (3) INELIGIBILITY.—None of the Directors action, including an action pending on ap- specified in clause (i), a representative of an shall be individuals who, for each of the 5 peal, or on petition or motion for discre- individual may not receive a fee unless— years before their appointments, earned tionary review, on or after the date of enact- (I) the representative submits to the Chief more than 15 percent of their income by ment of this Act. A court may dismiss such Executive Officer appropriately detailed bill- serving in matters related to asbestos litiga- action on its own motion. ing documentation for the work actually and tion as consultants or expert witnesses.

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(c) OPERATION OF THE BOARD.— (2) SUNSET.—Effective 2 years after the en- (5) make advance, progress, or other pay- (1) CHAIR.—The Board shall be chaired by a actment of this Act, all authority to issue ments; member elected by the Board, but the Chair- and revise regulations under this section (6) own and dispose of property; person may not be a full-time Federal em- shall terminate. (7) issue written policies and statements; ployee. (h) PERSONAL LIABILITY.—The Chief Execu- and (2) MEETINGS.—Meetings of the Board may tive Officer, Deputy Chief Executive Officers, (8) exercise any and all powers established be convened by the Chairperson upon reason- and members of the Board shall be exempt under this Act and such incidental powers as able notice, but the Board shall meet at least from civil liability for any act or omission are necessary to carry out its powers, duties, once per year. committed within the scope of their employ- and functions under section 101 and other (3) QUORUM.—A quorum shall consist of all ment with the Corporation, except for acts provisions of this Act. of the Directors or their representatives. that constitute gross negligence or inten- (b) PRINCIPAL AND BRANCH OFFICES.—The (4) COMPENSATION.—The compensation of tional wrongdoing. Corporation shall maintain its principal of- each member of the Board shall be paid by (i) CORPORATE COMPLIANCE OFFICER.— fice in the metropolitan Washington, DC, the Corporation as current expenses. Each (1) IN GENERAL.—The Board of Directors area. The Corporation may establish offices member other than members serving by vir- shall establish within the Corporation a Cor- in any place or places in which the Corpora- tue of their Federal office shall be com- porate Compliance Office headed by a Chief tion may carry on all or any of its oper- ations and business. pensated at the daily equivalent of the high- Compliance Officer selected by the President (c) TAX LAWS.—The Corporation, including est rate payable under section 5332 of title 1, on the basis of integrity and demonstrated its franchise and income, shall be exempt for each day (including travel time) during ability in accounting, auditing, financial from the tax laws and from taxation now or which the member is engaged in the actual analysis, law, management analysis, public hereafter imposed by the United States, or performance of duties as a member of the administration, or investigations. any territory or possession thereof, or by Board. Members of the Board shall be reim- (2) INDEPENDENCE.—Neither the Board nor any State, county, municipality, or local bursed by the Corporation for actual, reason- the Chief Executive Officer shall prevent or taxing authority. able, and necessary expenses (including trav- prohibit the Chief Compliance Officer from (d) AUDIT.—The programs, activities, re- eling and subsistence expenses) incurred by initiating, carrying out, or completing any ceipts, expenditures, and financial trans- them in the performance of the duties vested audit or investigation during the course of actions of the Corporation shall be subject to in the Board by this Act. any audit or investigation. audit by an independent certified public ac- (e) OFFICERS AND EMPLOYEES.— (3) STAFF.—The Board shall authorize the counting firm under generally accepted ac- (1) STATUS.—Officers and employees of the Chief Compliance Officer to obtain sufficient counting principles that would apply to a Corporation are not employees of the Fed- staff and other resources to carry out the private not-for-profit corporation. The audit- eral Government as a result of their service function of the position. ing firm shall have access to such books, ac- with the Corporation. (4) DUTIES.—It shall be the duty and re- counts, financial records, reports, files, and (2) CHIEF EXECUTIVE OFFICER.—There shall sponsibility of the Chief Compliance Officer such other papers, things, or property be- be in the Corporation a Chief Executive Offi- to— longing to or in use by the corporation and cer who shall be responsible for carrying out (A) provide policy direction for, and to con- necessary to facilitate the audit, and they the functions of the Corporation as described duct, supervise, and coordinate audits and shall be afforded full facilities for verifying in section 101(c) and in accordance with poli- investigations relating to the programs and transactions with the balances or securities cies established by the Board. The Chief Ex- operations of the Corporation; held by depositories, fiscal agents, and ecutive Officer shall be appointed by the (B) recommend policies for, and to con- custodians. A report on each such audit shall Board of Directors under section 101(b) and duct, supervise, or coordinate other activi- be made by the auditing firm to the Board of on such additional terms as the Board may ties carried out or financed by the Corpora- Directors, to the Secretary of the Treasury, determine and may be removed by the Board tion for the purpose of promoting economy and to Congress. of Directors in accordance with section and efficiency in the administration of, or (e) ANNUAL REPORT.—Within 6 months 101(b)(2). The Chief Executive Officer shall preventing and detecting fraud and abuse in, after the close of each fiscal year, the Cor- receive compensation at the rate provided by its programs and operations; poration shall submit to the President and law for the Vice President of the United (C) recommend policies for promotion of to the Committees on the Judiciary of the Senate and the House of Representatives the States. economy and efficiency in the administra- report on the activities of the Corporation (3) APPOINTMENT.—The Chief Executive Of- tion of, or the prevention and detection of during the prior fiscal year required under ficer shall appoint, remove, and fix com- fraud and abuse in, programs and operations section 405 of this Act. pensation for all subordinate officers and administered or financed by the Corporation, (f) ANNUAL REPORT CERTIFICATION.—Before employees of the Corporation as determined or the identification and prosecution of par- submission of the annual report required necessary. ticipants in such fraud or abuse; under section 405 of this Act, the Chief Exec- (4) COMPENSATION.—No officer or employee (D) keep the Chief Executive Officer, the utive Officer and the Deputy Chief Executive of the Corporation, other than the Chief Ex- Board, and Congress fully and currently in- Officers, in regard to their particular areas ecutive Officer, may be compensated by the formed concerning fraud and other serious of responsibility, shall certify that— Corporation at an annual rate of pay which problems, abuses, and deficiencies relating (1) the signing officer has reviewed the re- exceeds the rate of basic pay in effect for to the administration of programs and oper- port; level I of the Executive Schedule under sec- ations administered or financed by the Cor- (2) based on the officer’s knowledge, the re- tion 5312 of title 5, United States Code. poration; and port does not contain any untrue statement (f) CONFLICTS OF INTEREST.—No part of the (E) recommend corrective action con- of a material fact or omit to state a material Corporation’s revenue, income, or property cerning such problems, abuses, and defi- fact necessary in order to make the state- shall inure to the benefit of its directors, of- ciencies, and report on the progress made in ments made, in light of the circumstances ficers, and employees, and such revenue, implementing such corrective action. under which such statements were made, not earnings, or other income, or property shall (5) CRIMINAL VIOLATIONS.—In carrying out misleading; be used for the carrying out of the corporate the duties and responsibilities established (3) based on such officer’s knowledge, the purposes set forth in this Act. No director, under this section, the Chief Compliance Of- financial statements, and other financial in- officer, or employee of the corporation shall ficer shall file a criminal complaint with the formation included in the report, fairly in any manner directly or indirectly partici- Attorney General whenever the Chief Com- present in all material respects the financial pate in the deliberation upon or the deter- pliance Officer has reasonable grounds to be- condition and results of operations of the mination of any question affecting his or her lieve there has been a violation of Federal Corporation as of, and for, the periods pre- personal interests or the interests of any criminal law. sented in the report; corporation, partnership, or organization in SEC. 109. POWERS; OFFICES; TAX LAWS; AUDIT; (4) the signing officers— which he or she is directly or indirectly in- ANNUAL REPORT. (A) are responsible for establishing and terested. (a) POWERS.—In furtherance of the pur- maintaining internal controls; (g) REGULATIONS.— poses of the Corporation, the Corporation (B) have designed such internal controls to (1) AUTHORITY.—The Attorney General, may— ensure that material information relating to after consultation with the Secretaries of (1) adopt bylaws consistent with law; the Corporation is made known to such offi- the Treasury and of Labor, shall issue regu- (2) adopt, alter, use, and destroy a cor- cers by others within the Corporation, par- lations imposing on the Chief Executive Offi- porate seal; ticularly during the period in which the peri- cer, the Deputy Chief Executive Officers, and (3) sue and be sued, complain and defend, in odic reports are being prepared; the Board a fiduciary duty to manage the af- its corporate name and through its own (C) have evaluated the effectiveness of the fairs of the Corporation with prudence in counsel, in courts of competent jurisdiction; Corporation’s internal controls as of a date order to provide timely compensation to eli- (4) enter into contracts and modify, or con- within 90 days before the report; and gible claimants, giving appropriate priority sent to the modification of, any contract or (D) have presented in the report their con- to those most ill, while also preserving the agreement to which the Corporation is a clusions about the effectiveness of their in- funds available to the Corporation in order party or in which the Corporation has an in- ternal controls based on their evaluation as to compensate all eligible claimants. terest; of that date;

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00071 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1206 CONGRESSIONAL RECORD — SENATE February 14, 2006 (5) the signing officers have disclosed to any timely filed asbestos claim that is pend- sured employer of the claim made under this the Comptroller General and to the inde- ing— Act; and pendent auditing firm— (i) in a Federal or State court; or (9) for any claimant who asserts that he or (A) all significant deficiencies in the de- (ii) with a trust established under title 11, she is a nonsmoker or an ex-smoker, as de- sign or operation of internal controls which United States Code, fined in section 131, for purposes of an award could adversely affect the Corporation’s abil- such claimant shall file a claim under this under Malignant Level VI, evidence to sup- ity to record, process, summarize, and report section within 2 years after such date of en- port the assertion of nonsmoking or ex- financial data and have identified any mate- actment, or any claim relating to that in- smoking, including relevant medical records. rial weaknesses in internal controls; and jury, and any other asbestos claim related to (d) DATE OF FILING.—A claim shall be con- (B) any fraud, whether or not material, that injury shall be extinguished, and recov- sidered to be filed on the date that the that involves management or other employ- ery there shall be prohibited. claimant mails the claim to the Office, as de- termined by postmark, or on the date that ees who have a significant role in the Cor- (B) SPECIAL RULE.—For purposes of this poration’s internal controls; and paragraph, a claim shall not be treated as the claim is received by the Office, which- (6) the signing officers have indicated in pending with a trust established under title ever is the earliest determinable date. (e) INCOMPLETE CLAIMS.—If a claim filed the report whether or not there were signifi- 11, United States Code, solely because a under subsection (a) is incomplete, the Chief cant changes in internal controls or in other claimant whose claim was previously com- Executive Officer shall notify the claimant factors that could significantly affect inter- pensated by the trust has or alleges— of the information necessary to complete the nal controls subsequent to the date of their (i) a non-contingent right to the payment evaluation, including any corrective actions claim and inform the claimant of such serv- of future installments of a fixed award; or ices as may be available through the Claim- with regard to significant deficiencies and (ii) a contingent right to recover some ad- material weaknesses. ant Assistance Program established under ditional amount from the trust on the occur- section 104 to assist the claimant in com- Subtitle B—Asbestos Disease Compensation rence of a future event, such as the reevalua- pleting the claim. Any time periods for the Procedures tion of the trust’s funding adequacy or pro- processing of the claim shall be suspended SEC. 111. ESSENTIAL ELEMENTS OF ELIGIBLE jected claims experience. until such time as the claimant submits the CLAIM. (4) EFFECT OF MULTIPLE INJURIES.— information necessary to complete the To be eligible for an award under this Act (A) IN GENERAL.—An asbestos claimant claim. If such information is not received for an asbestos-related disease or injury, an who receives an award under this title for an within 1 year after the date of such notifica- individual shall— eligible disease or condition, and who subse- tion, the claim shall be dismissed. (1) file a claim in a timely manner in ac- quently develops another such injury, shall SEC. 114. ELIGIBILITY DETERMINATIONS AND cordance with section 113; and be eligible for additional awards under this CLAIM AWARDS. (2) prove, by a preponderance of the evi- title (subject to appropriate setoffs for such (a) IN GENERAL.— dence, that the claimant suffers from an eli- prior recovery of any award under this title (1) REVIEW OF CLAIMS.—The Chief Execu- gible disease or condition, as demonstrated and from any other collateral source) and tive Officer shall, in accordance with this by evidence that meets the requirements es- the statute of limitations under paragraph section, determine whether each claim filed tablished under subtitle C. (1) shall not begin to run with respect to under this Act satisfies the requirements for SEC. 112. GENERAL RULE CONCERNING NO- such subsequent injury until such claimant eligibility for an award under this Act and, if FAULT COMPENSATION. obtains a medical diagnosis of such other in- so, the value of the award. In making such An asbestos claimant shall not be required jury or discovers facts that would have led a determinations, the Chief Executive Officer to demonstrate that the asbestos-related in- reasonable person to obtain such a diagnosis. shall consider the claim presented by the jury for which the claim is being made re- (B) SETOFFS.—Any amounts paid or to be claimant, the factual and medical evidence sulted from the negligence or other fault of paid for a prior award under this Act shall be submitted by the claimant in support of the any other person. deducted as a setoff against amounts payable claim, and the results of such investigation SEC. 113. FILING OF CLAIMS. for the second injury claim. as the Chief Executive Officer may deem nec- (a) WHO MAY SUBMIT.— (c) REQUIRED INFORMATION.—A claim filed essary to determine whether the claim satis- (1) IN GENERAL.—Any individual who has under subsection (a) shall be in such form, fies the criteria for eligibility established by suffered from a disease or condition that is and contain such information in such detail, this Act. believed to meet the requirements estab- as the Chief Executive Officer shall by writ- (2) ADDITIONAL EVIDENCE.—The Chief Exec- lished under subtitle C (or the personal rep- ten procedures prescribe. At a minimum, a utive Officer may request the submission of resentative of the estate of that individual, claim shall include— medical evidence in addition to the min- if the individual is deceased or incompetent) (1) the name, social security number, sex, imum requirements of section 113(c) if nec- may file a claim with the Corporation for an date of birth, and, if applicable, date of death essary or appropriate to make a determina- award with respect to such injury. of the claimant; tion of eligibility for an award, in which case (2) DEFINITION.—In this Act, the term ‘‘per- (2) information relating to the identity of the cost of obtaining such additional infor- sonal representative’’ shall have the same dependents and beneficiaries of the claimant; mation or testing shall be paid by the Cor- meaning as that term is defined in section (3) a complete employment history suffi- poration in accordance with CPT codes at 104.4 of title 28 of the Code of Federal Regu- cient to establish required asbestos exposure, medicare rates by region, at the time of pro- lations, as in effect on December 31, 2004. accompanied by Social Security records; vision of services. (3) LIMITATION.—A claim may not be filed (4) a complete description of the asbestos (b) PROPOSED DECISIONS.—Not later than 90 by any person seeking contribution or in- exposure of the claimant, including, to the days after the filing of a claim, the Chief Ex- demnity. extent known, information on the site, or lo- ecutive Officer shall provide to the claimant (b) STATUTE OF LIMITATIONS.— cation of exposure, and duration and inten- (and the claimant’s representative) a pro- (1) IN GENERAL.—Except as otherwise pro- sity of exposure; posed decision accepting or rejecting the vided in this subsection, if an individual fails (5) a description of the tobacco product use claim in whole or in part and specifying the to file a claim with the Corporation under history of the claimant, including frequency amount of the proposed award, if any. The this section within 2 years after the date on and duration; proposed decision shall be in writing, shall which— (6) an identification and description of the contain findings of fact and conclusions of (A) the individual first received a medical asbestos-related diseases or conditions of the law, and shall contain an explanation of the diagnosis of an eligible disease or condition claimant, accompanied by a written report procedure for obtaining review of the pro- as provided for under this subtitle and sub- by the claimant’s physician with medical di- posed decision. title C; agnoses and x-ray films, and other test re- (c) REVIEW OF PROPOSED DECISIONS.— (B) the individual first discovered facts sults necessary to establish eligibility for an (1) RIGHT TO HEARING.— that would have led a reasonable person to award under this Act; (A) IN GENERAL.—Any claimant not satis- obtain a medical diagnosis with respect to an (7) a description of any prior or pending fied with a proposed decision of the Chief Ex- eligible disease or condition; or civil action or other claim, including any ecutive Officer under subsection (b) shall be (C) the Chief Executive Officer certifies the claim under a workers’ compensation law, entitled, on written request made within 90 Fund is operational, any claim relating to brought by the claimant for asbestos-related days after the date of the issuance of the de- that injury, and any other asbestos claim re- injury or any other pulmonary, paren- cision, to a hearing on the claim of that lated to that injury, shall be extinguished, chymal, or pleural reaction, including an claimant before a representative of the Chief and any recovery thereon shall be prohib- identification of any recovery of compensa- Executive Officer. At the hearing, the claim- ited. tion or damages through settlement, judg- ant shall be entitled to present oral evidence (2) EXCEPTION.—The statute of limitations ment, or otherwise; and written testimony in further support of in paragraph (1) does not apply to the pro- (8) for any claimant who has made a claim that claim. gression of non-malignant diseases once the for asbestos-related injury or any other pul- (B) CONDUCT OF HEARING.—When prac- initial claim has been filed. monary, parenchymal, or pleural reaction ticable, the hearing will be set at a time and (3) EFFECT ON PENDING CLAIMS.— under a workers’ compensation law, a certifi- place convenient for the claimant. In con- (A) IN GENERAL.—If, on the date of enact- cation that the claimant has notified the ducting the hearing, the representative of ment of this Act, an asbestos claimant has workers’ compensation insurer or self-in- the Chief Executive Officer shall not be

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00072 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1207 bound by common law or statutory rules of mitted in support of a claim, the cost of Subtitle C—Medical Criteria evidence, by technical or formal rules of pro- which shall be paid by the Corporation. SEC. 121. MEDICAL CRITERIA REQUIREMENTS. cedure, or by section 554 of title 5, United (2) DISAGREEMENT.—If an independent cer- (a) DEFINITIONS.—In this section, the fol- States Code, except as provided by this Act, tified B-reader assigned under paragraph (1) lowing definitions shall apply: but shall conduct the hearing in such man- disagrees with the quality grading or ILO (1) ASBESTOSIS DETERMINED BY PATHOL- ner as to best ascertain the rights of the level assigned to an x-ray submitted in sup- OGY.—The term ‘‘asbestosis determined by claimant. For this purpose, the representa- port of a claim, the Chief Executive Officer pathology’’ means indications of asbestosis tive shall receive such relevant evidence as shall require a review of such x-rays by a based on the pathological grading system for the claimant adduces and such other evi- second independent certified B-reader. asbestosis described in the Special Issues of dence as the representative determines nec- (3) EFFECT ON CLAIM.—If neither certified the Archives of Pathology and Laboratory essary or useful in evaluating the claim. B-reader under paragraph (2) agrees with the Medicine, ‘‘Asbestos-associated Diseases’’, (2) REVIEW OF WRITTEN RECORD.—In lieu of quality grading and the ILO grade level as- Vol. 106, No. 11, App. 3 (October 8, 1982). a hearing under paragraph (1), any claimant signed to an x-ray as part of the claim, the (2) BILATERAL ASBESTOS-RELATED NON- not satisfied with a proposed decision of the Chief Executive Officer shall take into ac- MALIGNANT REACTION.—The term ‘‘bilateral Chief Executive Officer shall have the op- count the findings of the 2 independent B asbestos-related nonmalignant reaction’’ tion, on written request made within 90 days readers in making the determination on such means a diagnosis of bilateral asbestos-re- after the date of the issuance of the decision, claim. lated nonmalignant reaction based on— of obtaining a review of the written record (4) CERTIFIED B-READERS.—The Chief Exec- (A) an x-ray reading of 1/1 or higher based by a representative of the Chief Executive utive Officer shall maintain a list of a min- on the ILO grade scale; Officer. If such review is requested, the imum of 50 certified B-readers eligible to (B) bilateral pleural plaques; claimant shall be afforded an opportunity to participate in the independent reviews, cho- (C) bilateral pleural thickening; or submit any written evidence or argument sen from all certified B-readers. When an x- (D) bilateral pleural calcification. which he or she believes relevant. ray is sent for independent review, the Chief (3) BILATERAL PLEURAL REACTION OF B2.— (d) FINAL DECISIONS.— Executive Officer shall choose the certified The term ‘‘bilateral pleural reaction of B2’’ (1) IN GENERAL.—If the period of time for B-reader at random from that list. means a chest wall pleural thickening or requesting review of the proposed decision (c) SMOKING ASSESSMENT.— plaque with a maximum width of at least 5 expires and no request has been filed, or if 1 (1) IN GENERAL.— millimeters and a total length of at least ⁄4 the claimant waives any objections to the (A) RECORDS AND DOCUMENTS.—To aid in of the projection of the lateral chest wall. proposed decision, the Chief Executive Offi- the assessment of the accuracy of claimant (4) CERTIFIED B-READER.—The term ‘‘cer- cer shall issue a final decision. If such deci- representations as to their smoking status tified B-reader’’ means an individual who is sion materially differs from the proposed de- for purposes of determining eligibility and certified by the National Institute of Occu- cision, the claimant shall be entitled to re- amount of award under Malignant Level VI, pational Safety and Health and whose cer- view of the decision under subsection (c). the Chief Executive Officer shall have the tification by the National Institute of Occu- (2) TIME AND CONTENT.—If the claimant re- authority, notwithstanding any other provi- pational Safety and Health is up to date. quests review of all or part of the proposed sion of law, to obtain relevant records and (5) DIFFUSE PLEURAL THICKENING.—The decision the Chief Executive Officer shall documents, including— term ‘‘diffuse pleural thickening’’ means issue a final decision on the claim not later (i) records of past medical treatment and blunting of either costophrenic angle and bi- than 180 days after the request for review is evaluation; lateral pleural plaque or bilateral pleural received, if the claimant requests a hearing, (ii) affidavits of appropriate individuals; thickening. or not later than 90 days after the request for (iii) applications for insurance and sup- (6) FEV1.—The term ‘‘FEV1’’ means forced review is received, if the claimant requests porting materials; and expiratory volume (1 second), which is the review of the written record. Such decision (iv) employer records of medical examina- maximal volume of air expelled in 1 second shall be in writing and contain findings of tions. during performance of the spirometric test fact and conclusions of law. (B) CONSENT.—The claimant shall provide for forced vital capacity. (e) REPRESENTATION.—A claimant may au- consent for the Chief Executive Officer to ob- (7) FVC.—The term ‘‘FVC’’ means forced thorize an attorney or other individual to tain such records and documents where re- vital capacity, which is the maximal volume represent him or her in any proceeding under quired. of air expired with a maximally forced effort this Act. (2) REVIEW.—The frequency of review of from a position of maximal inspiration. SEC. 115. MEDICAL EVIDENCE AUDITING PROCE- records and documents submitted under (8) ILO GRADE.—The term ‘‘ILO grade’’ DURES. paragraph (1)(A) shall be at the discretion of means the radiological ratings for the pres- (a) IN GENERAL.— the Chief Executive Officer, but shall address ence of lung changes as determined from a (1) DEVELOPMENT.—The Chief Executive Of- at least 5 percent of the claimants asserting chest x-ray, all as established from time to ficer shall develop methods for auditing and status as nonsmokers or ex-smokers. time by the International Labor Organiza- evaluating the medical evidence submitted (3) CONSENT.— tion. as part of a claim. The Chief Executive Offi- (A) IN GENERAL.—The Chief Executive Offi- (9) LOWER LIMITS OF NORMAL.—The term cer may develop additional methods for au- cer may require the performance of blood ‘‘lower limits of normal’’ means the fifth diting and evaluating other types of evidence tests or any other appropriate medical test, percentile of healthy populations as defined or information received by the Chief Execu- where claimants assert they are nonsmokers in the American Thoracic Society statement tive Officer. or ex-smokers for purposes of an award under on lung function testing (Amer. Rev. Resp. (2) REFUSAL TO CONSIDER CERTAIN EVI- Malignant Level VI, the cost of which shall Disease 1991, 144:1202–1218) and any future re- DENCE.— be paid by the Corporation. vision of the same statement. (A) IN GENERAL.—If the Chief Executive Of- (B) SERUM COTININE SCREENING.—The Chief (10) NONSMOKER.—The term ‘‘nonsmoker’’ ficer determines that an audit conducted in Executive Officer shall require the perform- means a claimant who— accordance with the methods developed ance of serum cotinine screening of all (A) never smoked; or under paragraph (1) demonstrates that the claimants who assert they are nonsmokers (B) has smoked fewer than 100 cigarettes or medical evidence submitted by a specific or ex-smokers for purposes of an award under the equivalent amount of other tobacco physician or medical facility is not con- Malignant Level VI, the cost of which shall products during the claimant’s lifetime. sistent with prevailing medical practices or be paid by the Corporation. (11) PO2.—The term ‘‘PO2’’ means the par- the applicable requirements of this Act, any (4) PENALTY FOR FALSE STATEMENTS.— tial pressure (tension) of oxygen, which medical evidence from such physician or fa- (A) IN GENERAL.—Any false information measures the amount of dissolved oxygen in cility shall be unacceptable for purposes of submitted under this subsection shall be sub- the blood. establishing eligibility for an award under ject to criminal prosecution or civil pen- (12) PULMONARY FUNCTION TESTING.—The this Act. alties as provided under section 1348 of title term ‘‘pulmonary function testing’’ means (B) NOTIFICATION.—Upon a determination 18, United States Code (as added by this Act) spirometry testing that is in material com- by the Chief Executive Officer under sub- and section 101(c)(2). pliance with the quality criteria established paragraph (A), the Chief Executive Officer (B) NO COMPENSATION.—Any claimant pe- by the American Thoracic Society and is shall notify the physician or medical facility nalized as described under subparagraph (A) performed on equipment which is in material involved of the results of the audit. Such shall not be entitled to compensation under compliance with the standards of the Amer- physician or facility shall have a right to ap- the Fund. ican Thoracic Society for technical quality peal such determination under procedures and calibration. (d) PULMONARY FUNCTION TESTING.—The issued by the Chief Executive Officer. (13) SUBSTANTIAL OCCUPATIONAL EXPOSURE Chief Executive Officer shall develop audit- (b) REVIEW OF CERTIFIED B-READERS.— TO ASBESTOS.— (1) EVALUATION.—At a minimum, the Chief ing procedures for pulmonary function test (A) IN GENERAL.—The term ‘‘substantial Executive Officer shall prescribe procedures results submitted as part of a claim, to en- occupational exposure’’ means employment to randomly assign a statistically significant sure that tests are conducted in accordance in an industry and an occupation where for a sample of claims for evaluation by inde- with American Thoracic Society Criteria, as substantial portion of a normal work year pendent certified B-readers of x-rays sub- defined under section 121(a)(13). for that occupation, the claimant—

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00073 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1208 CONGRESSIONAL RECORD — SENATE February 14, 2006 (i) handled raw asbestos fibers; elapsed between the date of first exposure to evidence is found in proceedings under this (ii) fabricated asbestos-containing prod- asbestos or asbestos-containing products and title to be reasonably reliable; ucts so that the claimant in the fabrication the diagnosis; or (C) by invoices, construction, or similar process was exposed to raw asbestos fibers; (B) a history of the claimant’s exposure records; or (iii) altered, repaired, or otherwise worked that is sufficient to establish a 10-year la- (D) any other credible evidence. with an asbestos-containing product such tency period between the date of first expo- (d) ASBESTOS DISEASE LEVELS.— that the claimant was exposed on a regular sure to asbestos or asbestos-containing prod- (1) NONMALIGNANT LEVEL I.—To receive basis to significant amounts of asbestos fi- ucts and the diagnosis. Level I compensation, a claimant shall pro- bers; or (2) DIAGNOSTIC GUIDELINES.—All diagnoses vide— (iv) worked in close proximity to other of asbestos-related diseases shall be based (A) a diagnosis of bilateral asbestos-related workers engaged in the activities described upon— nonmalignant disease; and under clause (i), (ii), or (iii), such that the (A) for disease Levels I through V, in the (B) evidence of 5 years cumulative occupa- claimant was exposed on a regular basis to case of a claimant who was living at the tional exposure to asbestos. significant amounts of asbestos fibers. time the claim was filed— (2) NONMALIGNANT LEVEL II.—To receive (B) REGULAR BASIS.—In this paragraph, the (i) a physical examination of the claimant Level II compensation, a claimant shall pro- term ‘‘on a regular basis’’ means on a fre- by the physician providing the diagnosis; vide— quent or recurring basis. (ii) an evaluation of smoking history and (A) a diagnosis of bilateral asbestos-related (14) TLC.—The term ‘‘TLC’’ means total exposure history before making a diagnosis; nonmalignant disease with ILO grade of 1/1 lung capacity, which is the total volume of (iii) an x-ray reading by a certified B-read- or greater, and showing small irregular opac- air in the lung after maximal inspiration. er; and ities of shape or size, either ss, st, or tt, and (15) WEIGHTED OCCUPATIONAL EXPOSURE.— (iv) pulmonary function testing in the case present in both lower lung zones, or asbes- (A) IN GENERAL.—The term ‘‘weighted oc- of disease Levels III, IV, and V; tosis determined by pathology, or blunting cupational exposure’’ means exposure for a (B) for disease Levels I through V, in the of either costophrenic angle and bilateral period of years calculated according to the case of a claimant who was deceased at the pleural plaque; exposure weighting formula under subpara- time the claim was filed, a report from a (B) evidence of TLC less than 80 percent graphs (B) through (E). physician based upon a review of the claim- and FVC less than the lower limits of nor- (B) MODERATE EXPOSURE.—Subject to sub- ant’s medical records which shall include— mal, and FEV1/FVC ratio less than 65 per- paragraph (E), each year that a claimant’s (i) pathological evidence of the non-malig- cent; primary occupation, during a substantial nant asbestos-related disease; or (C) evidence of 5 or more weighted years of portion of a normal work year for that occu- (ii) an x-ray reading by a certified B-read- substantial occupational exposure to asbes- pation, involved working in areas immediate er; tos; and to where asbestos-containing products were (C) for disease Levels VI through VIII, in (D) supporting medical documentation es- being installed, repaired, or removed under the case of a claimant who was living at the tablishing asbestos exposure as a substantial circumstances that involved regular air- time the claim was filed— contributing factor in causing the pul- borne emissions of significant amounts of as- (i) a physical examination by the claim- monary condition in question. bestos fibers, shall count as 1 year of sub- ant’s physician providing the diagnosis; or (3) NONMALIGNANT LEVEL III.—To receive stantial occupational exposure. (ii) a diagnosis of such a malignant asbes- Level III compensation a claimant shall pro- (C) HEAVY EXPOSURE.—Subject to subpara- tos-related disease, as described in this sec- vide— graph (E), each year that a claimant’s pri- tion, by a board-certified pathologist; and (A) a diagnosis of bilateral asbestos-related mary occupation, during a substantial por- (D) for disease Levels VI through VIII, in nonmalignant disease with ILO grade of 1/1 tion of a normal work year for that occupa- the case of a claimant who was deceased at or greater and showing small irregular opac- tion, involved the direct installation, repair, the time the claim was filed— ities of shape or size, either ss, st, or tt, and or removal of asbestos-containing products (i) a diagnosis of such a malignant asbes- present in both lower lung zones, or asbes- such that the person was exposed on a reg- tos-related disease, as described in this sec- tosis determined by pathology with a college ular basis to significant amounts of asbestos tion, by a board-certified pathologist; and of American Pathologists National Institu- fibers, shall count as 2 years of substantial (ii) a report from a physician based upon a tion for Occupational Safety and Health occupational exposure. review of the claimant’s medical records. level of 3 or 4; (D) VERY HEAVY EXPOSURE.—Subject to (3) CREDIBILITY OF MEDICAL EVIDENCE.—To (B) evidence of TLC less than 80 percent, subparagraph (E), each year that a claim- ensure the medical evidence provided in sup- FVC less than the lower limits of normal and ant’s primary occupation, during a substan- port of a claim is credible and consistent FEV1/FVC ratio greater than or equal to 65 tial portion of a normal work year for that with recognized medical standards, a claim- percent; occupation, was in primary asbestos manu- ant under this title may be required to sub- (C) evidence of 5 or more weighted years of facturing, a World War II shipyard, or the as- mit— substantial occupational exposure to asbes- bestos insulation trades, such that the per- (A) x-rays or computerized tomography; tos; and son was exposed on a regular basis to signifi- (B) detailed results of pulmonary function (D) supporting medical documentation— cant amounts of asbestos fibers, shall count tests; (i) establishing asbestos exposure as a sub- as 4 years of substantial occupational expo- (C) laboratory tests; stantial contributing factor in causing the sure. (D) tissue samples; pulmonary condition in question; and (E) DATES OF EXPOSURE.—Each year of ex- (E) results of medical examinations; (ii) excluding other more likely causes of posure calculated under subparagraphs (B), (F) reviews of other medical evidence; and that pulmonary condition. (C), and (D) that occurred before 1976 shall be (G) medical evidence that complies with (4) NONMALIGNANT LEVEL IV.—To receive counted at its full value. Each year from 1976 recognized medical standards regarding Level IV compensation a claimant shall pro- to 1986 shall be counted as 1⁄2 of its value. equipment, testing methods, and procedure vide— Each year after 1986 shall be counted as 1⁄10 of to ensure the reliability of such evidence as (A) diagnosis of bilateral asbestos-related its value. may be submitted. nonmalignant reaction with ILO grade of 1/1 (F) OTHER CLAIMS.—Individuals who do not (c) EXPOSURE EVIDENCE.— or greater and showing small irregular opac- meet the provisions of subparagraphs (A) (1) IN GENERAL.—To qualify for any disease ities of shape or size, either ss, st, or tt, and through (E) and believe their post-1976 or level, the claimant shall demonstrate— present in both lower lung zones, or asbes- post-1986 exposures exceeded the Occupa- (A) a minimum exposure to asbestos or as- tosis determined by pathology; tional Safety and Health Administration bestos-containing products; (B) evidence of TLC less than 60 percent or standard may submit evidence, documenta- (B) the exposure occurred in the United FVC less than 60 percent, and FEV1/FVC tion, work history, or other information to States, its territories or possessions, or ratio greater than or equal to 65 percent; substantiate noncompliance with the Occu- while a United States citizen, while an em- (C) evidence of 5 or more weighted years of pational Safety and Health Administration ployee of an entity organized under any Fed- substantial occupational exposure to asbes- standard (such as lack of engineering or eral or State law regardless of location, or tos before diagnosis; and work practice controls, or protective equip- while a United States citizen while serving (D) supporting medical documentation— ment) such that exposures would be equiva- on any United States flagged or owned ship, (i) establishing asbestos exposure as a sub- lent to exposures before 1976 or 1986, or to provided the exposure results from such em- stantial contributing factor in causing the documented exposures in similar jobs or oc- ployment or service; and pulmonary condition in question; and cupations where control measures had not (C) any additional asbestos exposure re- (ii) excluding other more likely causes of been implemented. quirement under this section. that pulmonary condition. (b) MEDICAL EVIDENCE.— (2) GENERAL EXPOSURE REQUIREMENTS.—In (5) NONMALIGNANT LEVEL V.—To receive (1) LATENCY.—Unless otherwise specified, order to establish exposure to asbestos, a Level V compensation a claimant shall pro- all diagnoses of an asbestos-related disease claimant shall present meaningful and cred- vide— for a level under this section shall be accom- ible evidence— (A) diagnosis of bilateral asbestos-related panied by— (A) by an affidavit of the claimant; nonmalignant disease with ILO grade of 1/1 (A) a statement by the physician providing (B) by an affidavit of a coworker or family or greater and showing small irregular opac- the diagnosis that at least 10 years have member, if the claimant is deceased and such ities of shape or size, either ss, st, or tt, and

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present in both lower lung zones, or asbes- (1) IN GENERAL.—An asbestos claimant who tosis determined by pathology; Level Scheduled Condi- Scheduled Value is entitled to an award should receive the (B)(i) evidence of TLC less than 50 percent tion or Disease. amount of the award through structured or FVC less than 50 percent, and FEV1/FVC ...... payments from the Fund, made over a period ratio greater than or equal to 65 percent; or I Asbestosis/Pleu- Medical Moni- of 3 years, and in no event more than 4 years (ii) PO2 less than 55 mm/Hg, plus a FEV1/ ral Reaction A. toring after the date of final adjudication of the FVC ratio not less than 65 percent; II Mixed Disease $20,000 claim. (C) evidence of 5 or more weighted years of With Impair- (2) PAYMENT PERIOD AND AMOUNT.—There substantial occupational exposure to asbes- ment. shall be a presumption that any award paid tos; and III Asbestosis/Pleu- $100,000 under this subsection shall provide for pay- (D) supporting medical documentation— ral Reaction B. ment of— (i) establishing asbestos exposure as a sub- IV Severe Asbes- $400,000 (A) 40 percent of the total amount in year stantial contributing factor in causing the tosis. 1; pulmonary condition in question; and V Disabling Asbes- $850,000 (B) 30 percent of the total amount in year (ii) excluding other more likely causes of tosis. 2; and that pulmonary condition. VI Lung Cancer mokers, $575,000; (C) 30 percent of the total amount in year (6) MALIGNANT LEVEL VI.—To receive Level With Asbes- ex-smokers, 3. VI compensation, a claimant shall provide— tosis. $950,000; (3) EXTENSION OF PAYMENT PERIOD.— (A) a diagnosis of a primary lung cancer nonsmokers, (A) IN GENERAL.—The Chief Executive Offi- disease on the basis of findings by a board $1,100,000 cer shall develop guidelines to provide for certified pathologist; VII Mesothelioma .... $1,100,000 the payment period of an award under sub- (B)(i) a diagnosis by a board-certified pa- section (a) to be extended to a 4-year period thologist of asbestosis, based on a chest x- (2) DEFINITIONS.—In this section— if such action is warranted in order to pre- ray of at least 1/0 on the ILO scale and show- (A) the term ‘‘nonsmoker’’ means a claim- serve the overall solvency of the Fund. Such ing small irregular opacities of shape or size, ant who— guidelines shall include reference to the either ss, st, or tt, and present in both lower (i) never smoked; or number of claims made to the Fund and the lung zones evidence of 10 or more weighted (ii) has smoked fewer than 100 cigarettes or awards made and scheduled to be paid from years of substantial occupational exposure the equivalent of other tobacco products dur- the Fund as provided under section 405. to asbestos; ing the claimant’s lifetime; and (B) LIMITATIONS.—In no event shall less (ii) a diagnosis by a board-certified pathol- (B) the term ‘‘ex-smoker’’ means a claim- than 50 percent of an award be paid in the ogist of asbestosis, based on a chest x-ray of ant who has not smoked during any portion first 2 years of the payment period under at least 1/1 on the ILO scale and showing of the 12-year period preceding the diagnosis this subsection. small irregular opacities of shape or size, ei- of lung cancer. (4) ACCELERATED PAYMENTS.—The Chief Ex- ther ss, st, or tt, and present in both lower (3) COST-OF-LIVING ADJUSTMENT.— ecutive Officer shall develop guidelines to lung zones and evidence of 8 or more weight- (A) IN GENERAL.—Beginning January 1, provide for accelerated payments to asbestos ed years of substantial occupational expo- 2007, award amounts under paragraph (1) claimants who are mesothelioma victims sure to asbestos; or shall be annually increased by an amount and who are alive on the date on which the (iii) asbestosis determined by pathology equal to such dollar amount multiplied by Chief Executive Officer receives notice of the and 10 or more weighted years of substantial the cost-of-living adjustment, rounded to the eligibility of the claimant. Such payments occupational exposure to asbestos; and nearest $1,000 increment. shall be credited against the first regular (C) supporting medical documentation es- (B) CALCULATION OF COST-OF-LIVING ADJUST- payment under the structured payment plan tablishing asbestos exposure as a substantial MENT.—For the purposes of subparagraph (A), for the claimant. contributing factor in causing the lung can- the cost-of-living adjustment for any cal- (5) EXPEDITED PAYMENTS.—The Chief Exec- cer in question. endar year shall be the percentage, if any, by utive Officer shall develop guidelines to pro- (7) MALIGNANT LEVEL VII.—To receive Level which the consumer price index for the suc- vide for expedited payments to asbestos VII compensation, a claimant shall provide— ceeding calendar year exceeds the consumer claimants in cases of exigent circumstances (A) a diagnosis of malignant mesothelioma price index for calendar year 2005. or extreme hardship caused by asbestos-re- disease on the basis of findings by a board (C) CONSUMER PRICE INDEX.— lated injury. certified pathologist; and (i) IN GENERAL.—For the purposes of sub- (6) ANNUITY.—An asbestos claimant may (B) credible evidence of identifiable expo- paragraph (B), the consumer price index for elect to receive any payments to which that sure to asbestos resulting from— any calendar year is the average of the con- claimant is entitled under this title in the (i) occupational exposure to asbestos; sumer price index as of the close of the 12- form of an annuity. (ii) exposure to asbestos fibers brought month period ending on August 31 of such (b) LIMITATION ON TRANSFERABILITY.—A into the home of the claimant by a worker calendar year. claim filed under this Act shall not be as- occupationally exposed to asbestos; or (ii) DEFINITION.—For purposes of clause (i), signable or otherwise transferable under this (iii) exposure to asbestos fibers resulting the term ‘‘consumer price index’’ means the Act. from living or working in the proximate vi- consumer price index published by the De- (c) CREDITORS.—An award under this title cinity of a factory, shipyard, building demo- partment of Labor. The consumer price index shall be exempt from all claims of creditors lition site, or other operation that regularly series to be used for award escalations shall and from levy, execution, and attachment or released asbestos fibers into the air due to include the consumer price index used for other remedy for recovery or collection of a operations involving asbestos at that site. all-urban consumers, with an area coverage debt, and such exemption may not be waived. (d) MEDICARE AS SECONDARY PAYER.—No (e) SMOKING HISTORY.—In considering a of the United States city average, for all award under this title shall be deemed a pay- claim with respect to Level VI, the Corpora- items, based on the 1982–1984 index based pe- ment for purposes of section 1862 of the So- tion shall consider the intensity and dura- riod, as published by the Department of Labor. cial Security Act (42 U.S.C. 1395y). tion of exposure, smoking history, and the (e) EXEMPT PROPERTY IN ASBESTOS CLAIM- quality of evidence relating to exposure and SEC. 132. REIMBURSABLE MEDICAL MONI- TORING. ANT’S BANKRUPTCY CASE.—If an asbestos smoking. Claimants shall bear the burden of claimant files a petition for relief under sec- producing meaningful and credible evidence (a) RECIPIENTS.—Reimbursable Medical Monitoring is only available to persons who tion 301 of title 11, United States Code, no of their smoking history as part of their award granted under this Act shall be treat- claim submission. have been approved for Level I compensation under section 131. ed as property of the bankruptcy estate of Subtitle D—Awards (b) RELATION TO STATUTE OF LIMITATIONS.— the asbestos claimant in accordance with section 541(b)(6) of title 11, United States SEC. 131. AMOUNT. The filing of a claim under this Act that seeks reimbursement for medical monitoring Code. (a) IN GENERAL.—An asbestos claimant who shall not be considered as evidence that the SEC. 134. REDUCTION IN BENEFIT PAYMENTS meets the requirements of section 111 shall claimant has discovered facts that would FOR COLLATERAL SOURCES. be entitled to an award in an amount deter- otherwise commence the period applicable (a) IN GENERAL.—The amount of an award mined by reference to the benefit table and for purposes of the statute of limitations otherwise available to an asbestos claimant the matrices developed under subsection (b). under section 113(b). under this title shall be reduced by the (b) BENEFIT TABLE.— (c) PROVIDER CHARGES.—All medical moni- amount of collateral source compensation. (1) IN GENERAL.—An asbestos claimant with toring costs shall be reimbursed in accord- (b) EXCLUSIONS.—In no case shall statutory an eligible disease or condition established ance with CPT codes at medicare rates by re- benefits under workers’ compensation laws, in accordance with section 121 shall be eligi- gion, at the time of the provision of services. and veterans’ benefits programs be deemed ble for an award as determined under this (d) PROCEDURES.—The Chief Executive Offi- as collateral source compensation for pur- subsection. The award for all asbestos claim- cer shall issue written procedures applicable poses of this section. ants with an eligible disease or condition es- to asbestos claimants under this section. SEC. 135. STATE LIEN LAWS. tablished in accordance with section 121 SEC. 133. PAYMENT. (a) IN GENERAL.—Any award of compensa- shall be according to the following schedule: (a) STRUCTURED PAYMENTS.— tion under this Act shall be deemed a third-

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00075 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1210 CONGRESSIONAL RECORD — SENATE February 14, 2006 party judgment or settlement for purposes of pending under title 11, United States Code; (A) that owned, as of December 31, 2002, the any Federal or State workers’ compensation and entire beneficial interest, directly or indi- lien law. (B) shall not include an entity— rectly, of at least 1 other person; and (b) WORKERS’ COMPENSATION.— (i) subject to chapter 7 of title 11, United (B) whose entire beneficial interest was not (1) BENEFITS BEFORE ENACTMENT.—To the States Code, if a final decree closing the es- owned, on December 31, 2002, directly or indi- extent any workers’ compensation insurer, tate shall have been entered before the date rectly, by any other single person (other self-insured employer, or Federal workers’ of enactment of this Act; or than a natural person). compensation Chief Executive Officer elects (ii) subject to chapter 11 of title 11, United SEC. 202. AUTHORITY AND TIERS. to assert any State statutory lien rights States Code, if a plan of reorganization for (a) LIABILITY FOR PAYMENTS TO THE against any award of compensation under such entity shall have been confirmed by a FUND.— this Act, it may not seek recovery from any duly entered order or judgment of a court (1) IN GENERAL.—Defendant participants awards made to a claimant by the Fund for that is no longer subject to any appeal or ju- shall be liable for payments to the Fund in any workers’ compensation benefits paid be- dicial review, and the substantial con- accordance with this section based on tiers fore the date of enactment of this Act. summation, as such term is defined in sec- and subtiers assigned to defendant partici- (2) BENEFITS ON OR AFTER ENACTMENT.— tion 1101(2) of title 11, United States Code, of pants. (A) IN GENERAL.—Upon acceptance or com- such plan of reorganization has occurred. (2) AGGREGATE PAYMENT OBLIGATIONS promise of a workers’ compensation claim (4) INDEMNIFIABLE COST.—The term LEVEL.—The total payments required of all first made after the date of enactment of ‘‘indemnifiable cost’’ means a cost, expense, defendant participants over the life of the this Act, or for any claim accepted or com- debt, judgment, or settlement incurred with Fund shall not exceed a sum equal to promised before the date of enactment of respect to an asbestos claim that, at any $90,000,000,000 less any bankruptcy trust cred- this Act where future workers’ compensation time before December 31, 2002, was or could its under section 222(d). The Chief Executive payments are due to be paid on or after such have been subject to indemnification, con- Officer shall have the authority to allocate date, a workers’ compensation insurer or tribution, surety, or guaranty. the payments required of the defendant par- self-insured employer’s obligation to make (5) INDEMNITEE.—The term ‘‘indemnitee’’ ticipants among the tiers as provided in this any further payments shall not arise until means a person against whom any asbestos title. such amount further due and owing exceeds claim has been asserted before December 31, (3) ABILITY TO ENTER REORGANIZATION.— the total amount of the award paid to the 2002, who has received from any other per- Notwithstanding any other provision of this claimant. son, or on whose behalf a sum has been paid Act, all debtors that, together with all of (B) ANNUAL AMOUNTS.—In the event the an- by such other person to any third person, in their direct or indirect majority-owned sub- nual workers’ compensation benefits further settlement, judgment, defense, or indemnity sidiaries, have prior asbestos expenditures due and owing exceed the annual amount of in connection with an alleged duty with re- less than $1,000,000 may proceed with the fil- the award paid to the claimant from the ing, solicitation, and confirmation of a plan spect to the defense or indemnification of Fund, then the workers’ compensation in- of reorganization that does not comply with such person concerning that asbestos claim, surer or self-insured employer shall be obli- the requirements of this Act, including a other than under a policy of insurance or re- gated to pay the claimant the difference be- trust and channeling injunction under sec- insurance. tween such annual workers’ compensation tion 524(g) of title 11, United States Code. (6) INDEMNITOR.—The term ‘‘indemnitor’’ benefit and the annual Fund payment. Any asbestos claim made in conjunction means a person who has paid under a written (C) OTHER RULES.—No workers’ compensa- with a plan of reorganization allowable agreement at any time before December 31, tion insurer or self-insured employer shall under the preceding sentence shall be subject 2002, a sum in settlement, judgment, defense, seek recovery from any such award paid to to section 403(d) of this Act. or indemnity to or on behalf of any person the claimant by the Fund. This subsection (b) TIER I.—Tier I shall include all debtors explicitly preempts any Federal or State defending against an asbestos claim, in con- that, together with all of their direct or indi- workers’ compensation lien law that is in- nection with an alleged duty with respect to rect majority-owned subsidiaries, have prior consistent with this subsection. the defense or indemnification of such per- asbestos expenditures greater than $1,000,000. son concerning that asbestos claim, except (c) TREATMENT OF TIER I BUSINESS ENTITIES TITLE II—ASBESTOS INJURY CLAIMS that payments by an insurer or reinsurer IN BANKRUPTCY.— RESOLUTION FUND under a contract of insurance or reinsurance (1) DEFINITION.— Subtitle A—Asbestos Defendants Funding shall not make the insurer or reinsurer an (A) IN GENERAL.—In this subsection, the Allocation indemnitor for purposes of this subtitle. term ‘‘bankrupt business entity’’ means a SEC. 201. DEFINITIONS. (7) PRIOR ASBESTOS EXPENDITURES.—The person that is not a natural person that— term ‘‘prior asbestos expenditures’’— In this subtitle, the following definitions (i) filed a petition for relief under chapter (A) means the gross total amount paid by shall apply: 11, of title 11, United States Code, before or on behalf of a person at any time before (1) AFFILIATED GROUP.—The term ‘‘affili- January 1, 2003; ated group’’— December 31, 2002, in settlement, judgment, (ii) has not substantially consummated, as (A) means a defendant participant that is defense, or indemnity costs related to all as- such term is defined under section 1101(2) of an ultimate parent and any person whose en- bestos claims against that person; title 11, United States Code, a plan of reorga- tire beneficial interest is directly or indi- (B) includes payments made by insurance nization as of the date of enactment of this rectly owned by that ultimate parent on the carriers to or for the benefit of such person Act; and date of enactment of this Act; and or on such person’s behalf with respect to (iii) the bankruptcy court presiding over (B) shall not include any person that is a such asbestos claims, except as provided in the business entity’s case determines, after debtor or any direct or indirect majority- section 204(g); notice and a hearing upon motion filed by owned subsidiary of a debtor. (C) shall not include any payment made by the entity within 30 days after the date of (2) CLASS ACTION TRUST.—The term ‘‘class a person in connection with or as a result of enactment of this Act, that asbestos liability action trust’’ means a trust or similar entity changes in insurance reserves required by was not the sole or precipitating cause of the established to hold assets for the payment of contract or any activity or dispute related to entity’s chapter 11 filing. asbestos claims asserted against a debtor or insurance coverage matters for asbestos-re- (B) MOTION AND RELATED MATTERS.—A mo- participating defendant, under a settlement lated liabilities; and tion under subparagraph (A)(iii) shall be sup- that— (D) shall not include any payment made by ported by— (A) is a settlement of class action claims or on behalf of persons who are or were com- (i) an affidavit or declaration of the chief under rule 23 of the Federal Rules of Civil mon carriers by railroad for asbestos claims executive officer, chief financial officer, or Procedure; and brought under the Act of April 22, 1908 (45 chief legal officer of the business entity; and (B) has been approved by a final judgment U.S.C. 51 et seq.), commonly known as the (ii) copies of the entity’s public statements of a United States district court before the Employers’ Liability Act, as a result of oper- and securities filings made in connection date of enactment of this Act. ations as a common carrier by railroad, in- with the entity’s filing for chapter 11 protec- (3) DEBTOR.—The term ‘‘debtor’’— cluding settlement, judgment, defense, or in- tion. (A) means— demnity costs associated with these claims. Notice of such motion shall be as directed by (i) a person that is subject to a case pend- (8) TRUST.—The term ‘‘trust’’ means any the bankruptcy court, and the hearing shall ing under a chapter of title 11, United States trust, as described in sections 524(g)(2)(B)(i) be limited to consideration of the question of Code, on the date of enactment of this Act or or 524(h) of title 11, United States Code, or whether or not asbestos liability was the at any time during the 1-year period imme- established in conjunction with an order sole or precipitating cause of the entity’s diately preceding that date, irrespective of issued under section 105 of title 11, United chapter 11 filing. The bankruptcy court shall whether the debtor’s case under that title States Code, established or formed under the hold a hearing and make its determination has been dismissed; and terms of a chapter 11 plan of reorganization, with respect to the motion within 60 days (ii) all of the direct or indirect majority- which in whole or in part provides compensa- after the date the motion is filed. In making owned subsidiaries of a person described tion for asbestos claims. its determination, the bankruptcy court under clause (i), regardless of whether any (9) ULTIMATE PARENT.—The term ‘‘ultimate shall take into account the affidavits, public such majority-owned subsidiary has a case parent’’ means a person— statements, and securities filings, and other

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information, if any, submitted by the entity (e) TIER PLACEMENT AND COSTS.— et seq.) for the most recent fiscal year end- and all other facts and circumstances pre- (1) PERMANENT TIER PLACEMENT.—After a ing on or before December 31, 2002. If the de- sented by an objecting party. Any review of defendant participant or affiliated group is fendant participant or affiliated group does this determination shall be an expedited ap- assigned to a tier and subtier under section not file reports with the Securities and Ex- peal and limited to whether the decision was 204(i)(6), the participant or affiliated group change Commission, revenues shall be the against the weight of the evidence. Any ap- shall remain in that tier and subtier amount that the defendant participant or af- peal of a determination shall be an expedited throughout the life of the Fund, regardless of filiated group would have reported as reve- review to the United States Circuit Court of subsequent events, including— nues under the rules of the Securities and Appeals for the circuit in which the bank- (A) the filing of a petition under a chapter Exchange Commission in the event that it ruptcy is filed. of title 11, United States Code; had been required to file. (2) PROCEEDING WITH REORGANIZATION (B) a discharge of debt in bankruptcy; (B) INSURANCE PREMIUMS.—Any portion of PLAN.—A bankrupt business entity may pro- (C) the confirmation of a plan of reorga- revenues of a defendant participant that is ceed with the filing, solicitation, confirma- nization; or derived from insurance premiums shall not tion, and consummation of a plan of reorga- (D) the sale or transfer of assets to any be used to calculate the payment obligation nization that does not comply with the re- other person or affiliated group, unless the of that defendant participant under this sub- quirements of this Act, including a trust and Administrator finds that the information title. channeling injunction described in section submitted by the participant or affiliated (C) DEBTORS.—Each debtor’s revenues shall 524(g) of title 11, United States Code, not- group to support its inclusion in that tier include the revenues of the debtor and all of withstanding any other provisions of this was inaccurate. the direct or indirect majority-owned sub- Act, if the bankruptcy court makes a favor- (2) COSTS.—Payments to the Fund by all sidiaries of that debtor, except that the pro able determination under paragraph (1)(B), persons that are the subject of a case under forma revenues of a person that is included unless the bankruptcy court’s determination a chapter of title 11, United States Code, in Subtier 2 of Tier I shall not be included in is overruled on appeal and all appeals are after the date of enactment of this Act— calculating the revenues of any debtor that final. Such a bankrupt business entity may (A) shall constitute costs and expenses of is a direct or indirect majority owner of such continue to so proceed, if— administration of the case under section 503 Subtier 2 person. If a debtor or affiliated (A) on request of a party in interest or on of title 11, United States Code, and shall be group includes a person in respect of whose a motion of the court, and after a notice and payable in accordance with the payment pro- liabilities for asbestos claims a class action a hearing, the bankruptcy court presiding visions under this subtitle notwithstanding trust has been established, there shall be ex- over the chapter 11 case of the bankrupt the pendency of the case under that title 11; cluded from the 2002 revenues of such debtor business entity determines that such con- (B) shall not be stayed or affected as to en- or affiliated group— firmation is required to avoid the liquidation forcement or collection by any stay or in- (i) all revenues of the person in respect of or the need for further financial reorganiza- junction power of any court; and whose liabilities for asbestos claims the tion of that entity; and (C) shall not be impaired or discharged in class action trust was established; and (B) an order confirming the plan of reorga- any current or future case under title 11, (ii) all revenues of the debtor and affiliated nization is entered by the bankruptcy court United States Code. group attributable to the historical business within 9 months after the date of enactment operations or assets of such person, regard- (f) SUPERSEDING PROVISIONS.— of this Act or such longer period of time ap- less of whether such business operations or (1) IN GENERAL.—All of the following shall proved by the bankruptcy court for cause assets were owned or conducted during the be superseded in their entireties by this Act: shown. year 2002 by such person or by any other per- (A) The treatment of any asbestos claim in (3) APPLICABILITY.—If the bankruptcy son included within such debtor and affili- any plan of reorganization with respect to court does not make the determination re- ated group. any debtor included in Tier I. quired under paragraph (2), or if an order (b) TIER I SUBTIERS.— (B) Any asbestos claim against any debtor confirming the plan is not entered within 9 (1) IN GENERAL.—Each debtor in Tier I shall included in Tier I. months after the date of enactment of this be included in subtiers and shall pay (C) Any agreement, understanding, or un- Act or such longer period of time approved amounts to the Fund as provided under this dertaking by any such debtor or any third by the bankruptcy court for cause shown, section. party with respect to the treatment of any the provisions of this Act shall apply to the (2) SUBTIER 1.— asbestos claim filed in a debtor’s bankruptcy bankrupt business entity notwithstanding (A) IN GENERAL.—All persons that are debt- case or with respect to a debtor before the the certification. Any timely appeal under ors with prior asbestos expenditures of date of enactment of this Act, whenever such title 11, United States Code, from a con- $1,000,000 or greater, shall be included in debtor’s case is either still pending, if such firmation order entered during the applica- Subtier 1. case is pending under a chapter other than ble time period shall automatically extend (B) PAYMENT.— chapter 11 of title 11, United States Code, or the time during which this Act is inappli- (i) IN GENERAL.—Each debtor included in subject to confirmation or substantial con- cable to the bankrupt business entity, until Subtier 1 shall pay on an annual basis 1.67024 summation of a plan of reorganization under the appeal is fully and finally resolved. percent of the debtor’s 2002 revenues. chapter 11 of title 11, United States Code. (4) OFFSETS.— (ii) EXCEPTION TO PAYMENT PERCENTAGE.— (2) PRIOR AGREEMENTS OF NO EFFECT.—Not- (A) PAYMENTS BY INSURERS.—To the extent Notwithstanding clause (i), a debtor in withstanding section 403(c)(3), any plan of re- that a bankrupt business entity or debtor Subtier 1 shall pay, on an annual basis, organization, agreement, understanding, or successfully confirms a plan of reorganiza- $500,000 if— undertaking by any debtor (including any tion, including a trust, and channeling in- (I) such debtor, including its direct or indi- pre-petition agreement, understanding, or junction that involves payments by insurers rect majority-owned subsidiaries, has less undertaking that requires future perform- who are otherwise subject to this Act as de- than $10,000,000 in prior asbestos expendi- ance) or any third party under paragraph (1), scribed under section 524(g) of title 11, tures; and any agreement, understanding, or under- United States Code, an insurer who makes (II) at least 95 percent of such debtors reve- taking entered into in anticipation, con- payments to the trust shall obtain a dollar- nues derive from the provision of engineer- templation, or furtherance of a plan of reor- for-dollar reduction in the amount otherwise ing and construction services; and ganization, to the extent it relates to any as- payable by that insurer under this Act to the (III) such debtor, including its direct or in- bestos claim, shall be of no force or effect, Fund. direct majority-owned subsidiaries, never and no person shall have any right or claim (B) CONTRIBUTIONS TO FUND.—Any cash manufactured, sold, or distributed asbestos- with respect to any such agreement, under- payments by a bankrupt business entity, if containing products in the stream of com- standing, or undertaking. any, to a trust described under section 524(g) merce. of title 11, United States Code, may be SEC. 203. SUBTIERS. (C) OTHER ASSETS.—The Chief Executive counted as a contribution to the Fund. (a) IN GENERAL.— Officer, at the sole discretion of the Chief (d) TIERS II THROUGH VI.—Except as pro- (1) SUBTIER LIABILITY.—Except as other- Executive Officer, may allow a Subtier 1 vided in section 204 and subsection (b) of this wise provided under subsections (b), (d), and debtor to satisfy its funding obligation under section, persons or affiliated groups are in- (l) of section 204, persons or affiliated groups this paragraph with assets other than cash if cluded in Tier II, III, IV, V, or VI, according shall be included within Tiers I through VII the Chief Executive Officer determines that to the prior asbestos expenditures paid by and shall pay amounts to the Fund in ac- requiring an all-cash payment of the debtor’s such persons or affiliated groups as follows: cordance with this section. funding obligation would render the debtor’s (1) Tier II: $75,000,000 or greater. (2) REVENUES.— reorganization infeasible. (2) Tier III: $50,000,000 or greater, but less (A) IN GENERAL.—For purposes of this sec- (D) LIABILITY.— than $75,000,000. tion, revenues shall be determined in accord- (i) IN GENERAL.—If a person who is subject (3) Tier IV: $10,000,000 or greater, but less ance with generally accepted accounting to a case pending under a chapter of title 11, than $50,000,000. principles, consistently applied, using the United States Code, as defined in section (4) Tier V: $5,000,000 or greater, but less amount reported as revenues in the annual 201(3)(A)(i), does not pay when due any pay- than $10,000,000. report filed with the Securities and Ex- ment obligation for the debtor, the Chief Ex- (5) Tier VI: $1,000,000 or greater, but less change Commission in accordance with the ecutive Officer shall have the right to seek than $5,000,000. Securities Exchange Act of 1934 (15 U.S.C. 78a payment of all or any portion of the entire

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00077 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1212 CONGRESSIONAL RECORD — SENATE February 14, 2006 amount due (as well as any other amount for (B) allowable priority claims under section (A) Subtier 1: $3,850,000. which the debtor may be liable under sec- 507 of title 11, United States Code; and (B) Subtier 2: $2,475,000. tions 223 and 224) from any of the direct or (C) allowable secured claims. (C) Subtier 3: $1,650,000. indirect majority-owned subsidiaries under (6) CLASS ACTION TRUST.—The assets of any (D) Subtier 4: $550,000. section 201(3)(A)(ii). class action trust that has been established (f) TIER V SUBTIERS.— (ii) CAUSE OF ACTION.—Notwithstanding in respect of the liabilities for asbestos (1) IN GENERAL.—Each person or affiliated section 221(e), this Act shall not preclude ac- claims of any person included within a debt- group in Tier V shall be included in 1 of the tions among persons within a debtor under or and affiliated group that has been in- 3 subtiers of Tier V, based on the person’s or section 201(3)(A) (i) and (ii) with respect to cluded in Tier I (exclusive of any assets affiliated group’s revenues. Such subtiers the payment obligations under this Act. needed to pay previously incurred expenses shall each contain as close to an equal num- (iii) RIGHT OF CONTRIBUTION.— and asbestos claims within the meaning of ber of total persons and affiliated groups as (I) IN GENERAL.—Notwithstanding any section 403(d)(1), before the date of enact- possible, with those persons or affiliated other provision of this Act, if a direct or in- ment of this Act) shall be transferred to the groups with the highest revenues in Subtier direct majority-owned foreign subsidiary of Fund not later than 60 days after the date of 1, those with the lowest revenues in Subtier a debtor participant (with such relationship enactment of this Act. 3, and those remaining in Subtier 2. IER UBTIERS to the debtor participant as determined on (c) T II S .— (2) PAYMENT.—Each person or affiliated the date of enactment of this Act) is or be- (1) IN GENERAL.—Each person or affiliated group within each subtier shall pay, on an comes subject to any foreign insolvency pro- group in Tier II shall be included in 1 of the annual basis, the following: ceedings, and such foreign direct or indirect- 5 subtiers of Tier II, based on the person’s or (A) Subtier 1: $1,000,000. majority owned subsidiary is liquidated in affiliated group’s revenues. Such subtiers (B) Subtier 2: $500,000. connection with such foreign insolvency pro- shall each contain as close to an equal num- (C) Subtier 3: $200,000. ceedings (or if the debtor participant’s inter- ber of total persons and affiliated groups as (g) TIER VI SUBTIERS.— est in such foreign subsidiary is otherwise possible, with— (1) IN GENERAL.—Each person or affiliated canceled or terminated in connection with (A) those persons or affiliated groups with group in Tier VI shall be included in 1 of the such foreign insolvency proceedings), the the highest revenues included in Subtier 1; 3 subtiers of Tier VI, based on the person’s or debtor participant shall have a claim against (B) those persons or affiliated groups with affiliated group’s revenues. Such subtiers such foreign subsidiary or the estate of such the next highest revenues included in shall each contain as close to an equal num- foreign subsidiary in an amount equal to the Subtier 2; ber of total persons and affiliated groups as greater of— (C) those persons or affiliated groups with possible, with those persons or affiliated (aa) the estimated amount of all current the lowest revenues included in Subtier 5; groups with the highest revenues in Subtier and future asbestos liabilities against such (D) those persons or affiliated groups with 1, those with the lowest revenues in Subtier foreign subsidiary; or the next lowest revenues included in Subtier (bb) the foreign subsidiary’s allocable 4; and 3, and those remaining in Subtier 2. share of the debtor participant’s funding ob- (E) those persons or affiliated groups re- (2) PAYMENT.—Each person or affiliated ligations to the Fund as determined by such maining included in Subtier 3. group within each subtier shall pay, on an foreign subsidiary’s allocable share of the (2) PAYMENTS.—Each person or affiliated annual basis, the following: debtor participant’s 2002 gross revenue. group within each subtier shall pay, on an (A) Subtier 1: $500,000. (II) DETERMINATION OF CLAIM AMOUNT.—The annual basis, the following: (B) Subtier 2: $250,000. claim amount under subclause (I) (aa) or (bb) (A) Subtier 1: $27,500,000. (C) Subtier 3: $100,000. shall be determined by a court of competent (B) Subtier 2: $24,750,000. (3) OTHER PAYMENT FOR CERTAIN PERSONS jurisdiction in the United States. (C) Subtier 3: $22,000,000. AND AFFILIATED GROUPS.— (III) EFFECT ON PAYMENT OBLIGATION.—The (D) Subtier 4: $19,250,000. (A) IN GENERAL.—Notwithstanding any right to, or recovery under, any such claim (E) Subtier 5: $16,500,000. other provision of this subsection, and if an shall not reduce, limit, delay, or otherwise (d) TIER III SUBTIERS.— adjustment authorized by this subsection affect the debtor participant’s payment obli- (1) IN GENERAL.—Each person or affiliated does not impair the overall solvency of the gations under this Act. group in Tier III shall be included in 1 of the Fund, any person or affiliated group within (iv) MAXIMUM ANNUAL PAYMENT OBLIGA- 5 subtiers of Tier III, based on the person’s or Tier VI whose required subtier payment in TION.—Subject to any payments under sec- affiliated group’s revenues. Such subtiers any given year would exceed such person’s or tions 204(l) and 222(c), and paragraphs (3), (4), shall each contain as close to an equal num- group’s average annual expenditure on set- and (5) of this subsection, the annual pay- ber of total persons and affiliated groups as tlements, and judgments of asbestos disease- ment obligation by a debtor under subpara- possible, with— related claims over the 8 years before the graph (B) of this paragraph shall not exceed (A) those persons or affiliated groups with date of enactment of this Act shall make the $80,000,000. the highest revenues included in Subtier 1; payment required of the immediately lower (3) SUBTIER 2.— (B) those persons or affiliated groups with subtier or, if the person’s or group’s average (A) IN GENERAL.—Notwithstanding para- the next highest revenues included in annual expenditures on settlements and graph (2), all persons that are debtors that Subtier 2; judgments over the 8 years before the date of have no material continuing business oper- (C) those persons or affiliated groups with enactment of this Act is less than $100,000, ations, other than class action trusts under the lowest revenues included in Subtier 5; shall not be required to make a payment paragraph (6), but hold cash or other assets (D) those persons or affiliated groups with under this Act. that have been allocated or earmarked for the next lowest revenues included in Subtier (B) NO FURTHER ADJUSTMENT.—Any person the settlement of asbestos claims shall be in- 4; and or affiliated group that receives an adjust- cluded in Subtier 2. (E) those persons or affiliated groups re- ment under this paragraph shall not be eligi- (B) ASSIGNMENT OF ASSETS.—Not later than maining included in Subtier 3. ble to receive any further adjustment under 90 days after the date of enactment of this (2) PAYMENTS.—Each person or affiliated section 204(d). Act, each person included in Subtier 2 shall group within each subtier shall pay, on an (h) TIER VII.— assign all of its unencumbered assets to the annual basis, the following: (1) IN GENERAL.—Notwithstanding prior as- Fund. (A) Subtier 1: $16,500,000. bestos expenditures that might qualify a per- (4) SUBTIER 3.— (B) Subtier 2: $13,750,000. son or affiliated group to be included in Tiers (A) IN GENERAL.—Notwithstanding para- (C) Subtier 3: $11,000,000. II, III, IV, V, or VI, a person or affiliated graph (2), all persons that are debtors other (D) Subtier 4: $8,250,000. group shall also be included in Tier VII, if than those included in Subtier 2, which have (E) Subtier 5: $5,500,000. the person or affiliated group— no material continuing business operations (e) TIER IV SUBTIERS.— (A) is or has at any time been subject to and no cash or other assets allocated or ear- (1) IN GENERAL.—Each person or affiliated asbestos claims brought under the Act of marked for the settlement of any asbestos group in Tier IV shall be included in 1 of the April 22, 1908 (45 U.S.C. 51 et seq.), commonly claim, shall be included in Subtier 3. 4 subtiers of Tier IV, based on the person’s or known as the Employers’ Liability Act, as a (B) ASSIGNMENT OF UNENCUMBERED AS- affiliated group’s revenues. Such subtiers result of operations as a common carrier by SETS.—Not later than 90 days after the date shall each contain as close to an equal num- railroad; and of enactment of this Act, each person in- ber of total persons and affiliated groups as (B) has paid (including any payments made cluded in Subtier 3 shall contribute an possible, with those persons or affiliated by others on behalf of such person or affili- amount equal to 50 percent of its total groups with the highest revenues in Subtier ated group) not less than $5,000,000 in settle- unencumbered assets. 1, those with the lowest revenues in Subtier ment, judgment, defense, or indemnity costs (5) CALCULATION OF UNENCUMBERED AS- 4. Those persons or affiliated groups with the relating to such claims. SETS.—Unencumbered assets shall be cal- highest revenues among those remaining will (2) ADDITIONAL AMOUNT.—The payment re- culated as the Subtier 3 person’s total assets, be included in Subtier 2 and the rest in quirement for persons or affiliated groups in- excluding insurance-related assets, jointly Subtier 3. cluded in Tier VII shall be in addition to any held, in trust or otherwise, with a defendant (2) PAYMENT.—Each person or affiliated payment requirement applicable to such per- participant, less— group within each subtier shall pay, on an son or affiliated group under Tiers II through (A) all allowable administrative expenses; annual basis, the following: VI.

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(3) SUBTIER 1.—Each person or affiliated subsection (j) after payment of the otherwise such participant’s prior asbestos expendi- group in Tier VII with revenues of applicable payment obligation, at the discre- tures arose from asbestos claims based on $6,000,000,000 or more is included in Subtier 1 tion of the Chief Executive Officer. successor liability arising from a merger to and shall make annual payments of (2) FINANCIAL HARDSHIP ADJUSTMENTS.— which the participant or its predecessor was $11,000,000 to the Fund. (A) IN GENERAL.—A defendant participant a party that occurred at least 30 years before (4) SUBTIER 2.—Each person or affiliated may apply for an adjustment based on finan- the date of enactment of this Act, and that group in Tier VII with revenues of less than cial hardship at any time during the period such prior asbestos expenditures exceed the $6,000,000,000, but not less than $4,000,000,000 in which a payment obligation to the Fund inflation-adjusted value of the assets of the is included in Subtier 2 and shall make an- remains outstanding and may qualify for company from which such liability was de- such adjustment by demonstrating that the nual payments of $5,500,000 to the Fund. rived in such merger, and upon such dem- amount of its payment obligation under the (5) SUBTIER 3.—Each person or affiliated onstration the Chief Executive Officer shall statutory allocation would constitute a se- group in Tier VII with revenues of less than grant such adjustment for the life of the $4,000,000,000, but not less than $500,000,000 is vere financial hardship. Fund and amounts paid by such defendant included in Subtier 3 and shall make annual (B) TERM.—Subject to the annual avail- participant prior to such adjustment in ex- payments of $550,000 to the Fund. ability of funds in the defendant hardship cess of its adjusted payment obligation (6) JOINT VENTURE REVENUES AND LIABIL- and inequity adjustment account established under this clause shall be credited against ITY.— under subsection (j), a financial hardship ad- next succeeding required payment obliga- (A) REVENUES.—For purposes of this sub- justment under this subsection shall have a section, the revenues of a joint venture shall term of 3 years. tions. be included on a pro rata basis reflecting rel- (C) RENEWAL.—After an initial hardship ad- (B) PAYMENT RATE.—For purposes of sub- ative joint ownership to calculate the reve- justment is granted under this paragraph, a paragraph (A), the payment rate of a defend- nues of the parents of that joint venture. The defendant participant may renew its hard- ant participant is the payment amount of joint venture shall not be responsible for a ship adjustment by demonstrating that it re- the defendant participant as a percentage of contribution amount under this subsection. mains justified. such defendant participant’s gross revenues (B) LIABILITY.—For purposes of this sub- (D) REINSTATEMENT.—Following the expi- for the year ending December 31, 2002. section, the liability under the Act of April ration of the hardship adjustment period (C) TERM.—Subject to the annual avail- 22, 1908 (45 U.S.C. 51 et seq.), commonly provided for under this section and during ability of funds in the defendant hardship known as the Employers’ Liability Act, shall the funding period prescribed under sub- and inequity adjustment account established be attributed to the parent owners of the section (a), the Chief Executive Officer shall under subsection (j), an inequity adjustment joint venture on a pro rata basis, reflecting annually determine whether there has been a under this subsection shall have a term of 3 their relative share of ownership. The joint material change in the financial condition of years. venture shall not be responsible for a pay- the defendant participant such that the (D) RENEWAL.—A defendant participant ment amount under this provision. Chief Executive Officer may, consistent with may renew an inequity adjustment every 3 the policies and legislative intent underlying SEC. 204. ASSESSMENT ADMINISTRATION. years by demonstrating that the adjustment this Act, reinstate under terms and condi- remains justified. (a) IN GENERAL.—Each defendant partici- tions established by the Chief Executive Offi- (E) REINSTATEMENT.— pant or affiliated group shall pay to the cer any part or all of the defendant partici- (i) IN GENERAL.—Following the termination Fund in the amounts provided under this pant’s payment obligation under the statu- of an inequity adjustment under subpara- subtitle as appropriate for its tier and tory allocation that was not paid during the graph (A), and during the funding period pre- subtier each year until the earlier to occur hardship adjustment term. scribed under subsection (a), the Chief Exec- of the following: (3) INEQUITY ADJUSTMENTS.— (1) The participant or affiliated group has (A) IN GENERAL.—A defendant partici- utive Officer shall annually determine satisfied its obligations under this subtitle pant— whether there has been a material change in during the 30 annual payment cycles of the (i) may qualify for an adjustment based on conditions which would support a finding operation of the Fund. inequity by demonstrating that the amount that the amount of the defendant partici- (2) The amount received by the Fund from of its payment obligation under the statu- pant’s payment under the statutory alloca- defendant participants, excluding any tory allocation is exceptionally inequi- tion was not inequitable. Based on this de- amounts rebated to defendant participants table— termination, the Chief Executive Officer under subsections (d) and (m), equals the (I) when measured against the amount of may, consistent with the policies and legisla- maximum aggregate payment obligation of the likely cost to the defendant participant tive intent underlying this Act, reinstate section 202(a)(2). net of insurance of its future liability in the any or all of the payment obligations of the (b) SMALL BUSINESS EXEMPTION.—Notwith- tort system in the absence of the Fund; defendant participant as if the inequity ad- standing any other provision of this subtitle, (II) when compared to the median payment justment had not been granted for that 3- a person or affiliated group that is a small rate for all defendant participants in the year period. business concern (as defined under section 3 same tier; or (ii) TERMS AND CONDITIONS.—In the event of of the Small Business Act (15 U.S.C. 632)), on (III) when measured against the percentage a reinstatement under clause (i), the Chief December 31, 2002, is exempt from any pay- of the prior asbestos expenditures of the de- Executive Officer may require the defendant ment requirement under this subtitle and fendant that were incurred with respect to participant to pay any part or all of amounts shall not be included in the subtier alloca- claims that neither resulted in an adverse not paid due to the inequity adjustment on tions under section 203. judgment against the defendant, nor were such terms and conditions as established by (c) PROCEDURES.—The Chief Executive Offi- the subject of a settlement that required a the Chief Executive Officer. cer shall prescribe procedures on how payment to a plaintiff by or on behalf of that (4) LIMITATION ON PAYMENTS BY DEFENDANT amounts payable under this subtitle are to defendant; PARTICIPANTS.— be paid, including, to the extent the Chief (ii) shall qualify for a two-tier main tier (A) IN GENERAL.—Under expedited proce- Executive Officer determines appropriate, and a two-tier subtier adjustment reducing dures established by the Chief Executive Of- procedures relating to payment in install- the defendant participant’s payment obliga- ficer, any defendant participant may apply ments. tion based on inequity by demonstrating for a limitation on its annual payment obli- (d) ADJUSTMENTS.— that not less than 95 percent of such person’s gation to the Fund by showing that it quali- (1) IN GENERAL.—Under expedited proce- prior asbestos expenditures arose from fies under subparagraph (C). The Chief Exec- dures established by the Chief Executive Of- claims related to the manufacture and sale ficer, a defendant participant may seek ad- of railroad locomotives and related products, utive Officer shall promptly grant that appli- justment of the amount of its payment obli- so long as such person’s manufacture and cation if the requirements under subpara- gation based on severe financial hardship or sale of railroad locomotives and related graph (C) are satisfied. demonstrated inequity. The Chief Executive products is temporally and causally remote, (B) STAY OF PAYMENT.—A defendant partic- Officer may determine whether to grant an and for purposes of this clause, a person’s ipant who applies for a limitation on its an- adjustment and the size of any such adjust- manufacture and sale of railroad loco- nual payment obligation to the Fund under ment, in accordance with this subsection. A motives and related products shall be subparagraph (A) shall have the payment re- defendant participant has a right to obtain a deemed to be temporally and causally re- quired under subsection (i)(1)(A)(iv) stayed rehearing of the Chief Executive Officer’s de- mote if the asbestos claims historically and until the Chief Executive Officer has made a termination under this subsection under the generally filed against such person relate to determination with respect to the applica- procedures prescribed in subsection (i)(10). the manufacture and sale of railroad loco- tion of that defendant participant. The Chief Executive Officer may adjust a de- motives and related products by an entity (C) APPLICATION FOR LIMITATION.—A de- fendant participant’s payment obligations dissolved more than 25 years before the date fendant participant may apply under sub- under this subsection, either by forgiving the of enactment of this Act; and paragraph (A) for a limit on its annual pay- relevant portion of the otherwise applicable (iii) shall be granted a two-tier adjustment ment obligation to the Fund if that defend- payment obligation or by providing relevant reducing the defendant participant’s pay- ant participant— rebates from the defendant hardship and in- ment obligation based on inequity by dem- (i) is included in Tiers II, III, IV, V, or VI equity adjustment account created under onstrating that not less than 95 percent of under section 202; and

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00079 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1214 CONGRESSIONAL RECORD — SENATE February 14, 2006 (ii) has prior asbestos expenditures less render the defendant participant insolvent, the affiliated group, the Chief Executive Of- than $200,000,000 or has revenues as deter- as defined under section 101 of title 11, ficer shall have the right to seek payment of mined under section 203 that are less than United States Code, and unable to pay its all or any portion of the entire amount due $15,000,000,000. debts as they become due. (as well as any other amount for which the (D) LIMITATION.— (B) INFORMATION REQUIRED.—Any defendant affiliated group may be liable under sections (i) IN GENERAL.—A defendant participant participant seeking an adjustment or re- 223 and 224) from any member of the affili- that qualifies for a limitation under this newal of an adjustment under this paragraph ated group; paragraph may apply for only 1 of the limits shall provide the Chief Executive Officer (C) all members of the affiliated group under subclause (I), (II), or (III) of clause (ii). with the information required under section shall be identified in the submission under A defendant participant may not change its 521(1) of title 11 of the United States Code. subsection (i) and shall certify compliance application once the application has been ap- (C) LIMITATION.—Any adjustment granted with this subsection and the Chief Executive proved by the Chief Executive Officer. by the Chief Executive Officer under sub- Officer’s regulations implementing this sub- (ii) APPLICATION FOR 1 LIMITATION.—Subject paragraph (A) shall be limited to the extent section; and to clause (i), a defendant participant may reasonably necessary to prevent insolvency (D) the obligations under this subtitle apply for a limit of an amount equal to— of a defendant participant. shall not change even if, after the date of en- (I) 125 percent of the arithmetical average (D) TERM.—To the extent the Chief Execu- actment of this Act, the beneficial ownership for fiscal years 1998 through 2002 of the an- tive Officer grants any relief under this para- interest between any members of the affili- nual prior asbestos expenditures of that de- graph, such adjustments shall have a term of ated group shall change. fendant participant; 1 year. An adjustment may be renewed or (3) CAUSE OF ACTION.—Notwithstanding sec- (II) 150 percent of the arithmetical average modified on an annual basis upon the defend- tion 221(e), this Act shall not preclude ac- for fiscal years 1998 through 2002 of the an- ant participant demonstrating that the ad- tions among persons within an affiliated nual prior asbestos expenditures of that de- justment or modification remains justified group with respect to the payment obliga- fendant participant, excluding— under this paragraph. tions under this Act. (aa) the amount of any payments by insur- (E) REINSTATEMENT.—During the funding (g) DETERMINATION OF PRIOR ASBESTOS EX- ance carriers for the benefit of that defend- period prescribed under subparagraph (A), PENDITURES.— ant participant or on behalf of that defend- the Chief Executive Officer shall annually (1) IN GENERAL.—For purposes of deter- ant participant; and determine whether there has been a material mining a defendant participant’s prior asbes- (bb) any reimbursements of the amounts change in the financial condition of any de- tos expenditures, the Chief Executive Officer actually paid by that defendant participant fendant participant granted an adjustment shall prescribe such rules as may be nec- with respect to prior asbestos expenditures under this paragraph such that the Chief Ex- essary or appropriate to assure that pay- for fiscal years 1998 through 2002, regardless ecutive Officer may, consistent with the ments by indemnitors before December 31, of when such reimbursements were actually policies and legislative intent underlying 2002, shall be counted as part of the paid; or this Act, reinstate under terms and condi- indemnitor’s prior asbestos expenditures, (III) 1.67024 percent of the revenues for the tions established by the Chief Executive Offi- rather than the indemnitee’s prior asbestos most recent fiscal year ending on or prior to cer any part or all of the defendant partici- expenditures, in accordance with this sub- December 31, 2002, of the affiliated group to pant’s payment obligation under the statu- section. which that defendant participant belongs. tory allocation that was not paid during the (2) INDEMNIFIABLE COSTS.—If an indemnitor (E) JUDICIAL REVIEW.—A defendant partici- adjustment term. has paid or reimbursed to an indemnitee any pant is entitled to judicial review under sec- (7) ADVISORY PANELS.— indemnifiable cost or otherwise made a pay- tion 303 of a denial of an application under (A) APPOINTMENT.—The Chief Executive Of- ment on behalf of or for the benefit of an this paragraph. During the pendency of that ficer shall appoint a Financial Hardship Ad- indemnitee to a third party for an review, section 223(a) shall not apply to that justment Panel and an Inequity Adjustment indemnifiable cost before December 31, 2002, defendant participant. Without regard to Panel to advise the Chief Executive Officer the amount of such indemnifiable cost shall section 305(a), the reviewing court may, in in carrying out this subsection. be solely for the account of the indemnitor its discretion, provide such interlocutory re- (B) MEMBERSHIP.—The membership of the for purposes under this Act. lief to the defendant participant as may be panels appointed under subparagraph (A) just. (3) INSURANCE PAYMENTS.—When computing may overlap. the prior asbestos expenditures with respect (F) APPLICABILITY OF THE GUARANTEE SUR- (C) COORDINATION.—The panels appointed to an asbestos claim, any amount paid or re- CHARGE.—A defendant participant whose ap- under subparagraph (A) shall coordinate plication under this paragraph is approved imbursed by insurance shall be solely for the their deliberations and advice. account of the indemnitor, even if the by the Chief Executive Officer, shall not be (e) LIMITATION ON LIABILITY.—The liability indemnitor would have no direct right to the exempt from the guaranteed payment sur- of each defendant participant to pay to the benefit of the insurance, if— charge established under subsection (l), un- Fund shall be limited to the payment obliga- (A) such insurance has been paid or reim- less otherwise provided in this Act. tions under this Act, and, except as provided bursed to the indemnitor or the indemnitee, (G) MINIMUM PAYMENT.—Notwithstanding in subsection (f) and section 203(b)(2)(D), no any other provision of this paragraph, a de- defendant participant shall have any liabil- or paid on behalf of or for the benefit of the fendant participant that is granted a limita- ity for the payment obligations of any other indemnitee; and tion by the Chief Executive Officer shall pay defendant participant. (B) the indemnitor has either, with respect not less than 10 percent of the amount the (f) CONSOLIDATION OF PAYMENTS.— to such asbestos claim or any similar asbes- participant is scheduled to pay under section (1) IN GENERAL.—For purposes of deter- tos claim, paid or reimbursed to its 202. mining the payment levels of defendant par- indemnitee any indemnifiable cost or paid to (5) LIMITATION ON ADJUSTMENTS.—The ag- ticipants, any affiliated group including 1 or any third party on behalf of or for the ben- gregate total of financial hardship adjust- more defendant participants may irrev- efit of the indemnitee any indemnifiable ments under paragraph (2) and inequity ad- ocably elect, as part of the submissions to be cost. justments under paragraph (3) in effect in made under paragraphs (1) and (3) of sub- (4) TREATMENT OF CERTAIN EXPENDITURES.— any given year shall not exceed $300,000,000, section (i), to report on a consolidated basis Notwithstanding any other provision of this except to the extent that— all of the information necessary to deter- Act, where— (A) additional monies are available for mine the payment level under this subtitle (A) an indemnitor entered into a stock pur- such adjustments as a result of carryover of and pay to the Fund on a consolidated basis. chase agreement in 1988 that involved the prior years’ funds under subsection (j)(3) or (2) ELECTION.—If an affiliated group elects sale of the stock of businesses that produced as a result of monies being made available in consolidation as provided in this sub- friction and other products; and that year under subsection (k)(1)(A); or section— (B) the stock purchase agreement provided (B) the Chief Executive Officer determines (A) for purposes of this Act other than this that the indemnitor indemnified the that the $300,000,000 is insufficient and addi- subsection, the affiliated group shall be indemnitee and its affiliates for losses aris- tional adjustments as provided under para- treated as if it were a single participant, in- ing from various matters, including asbestos graph (5) are needed to address situations in cluding with respect to the assessment of a claims— which a defendant participant would other- single annual payment under this subtitle (i) asserted before the date of the agree- wise be rendered insolvent by its payment for the entire affiliated group; ment; and obligations without such adjustment. (B) the ultimate parent of the affiliated (ii) filed after the date of the agreement (6) BANKRUPTCY RELIEF.— group shall prepare and submit each submis- and prior to the 10-year anniversary of the (A) IN GENERAL.—Any defendant partici- sion to be made under subsection (i) on be- stock sale, pant may apply for an adjustment under this half of the entire affiliated group and shall then the prior asbestos expenditures arising paragraph at any time during the period in be solely liable, as between the Chief Execu- from the asbestos claims described in clauses which a payment obligation to the Fund re- tive Officer and the affiliated group only, for (i) and (ii) shall not be for the account of ei- mains outstanding and may qualify for such the payment of the annual amount due from ther the indemnitor or indemnitee. adjustment by demonstrating, to a reason- the affiliated group under this subtitle, ex- (h) MINIMUM ANNUAL PAYMENTS.— able degree of certainty, evidence that the cept that, if the ultimate parent does not (1) IN GENERAL.—The aggregate annual amount of its payment obligation would pay when due any payment obligation for payments of defendant participants to the

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00080 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1215 Fund shall be at least $3,000,000,000 for each (i) a statement of the debtor’s 2002 reve- Chief Executive Officer’s audit authority calendar year in the first 30 years of the nues, determined in accordance with section under section 221(d). Fund, or until such shorter time as the con- 203(a)(2); (6) NOTICE OF INITIAL DETERMINATION.— dition set forth in subsection (a)(2) is at- (ii) for those debtors subject to the pay- (A) IN GENERAL.— tained. ment requirement of section 203(b)(2)(B)(ii), (i) NOTICE TO INDIVIDUAL.—Not later than (2) GUARANTEED PAYMENT ACCOUNT.—To the a statement whether its prior asbestos ex- 60 days after receiving a response under extent payments in accordance with sections penditures do not exceed $10,000,000, and a de- paragraph (5), the Chief Executive Officer 202 and 203 (as modified by subsections (b), scription of its business operations sufficient shall send the person a notice of initial de- (d), (f), (g), and (m) of this section) fail in to show the requirements of that section are termination identifying the tier and subtier, any year to raise at least $3,000,000,000, after met; and if any, into which the person falls and the applicable reductions or adjustments have (iii) a payment under section 203(b)(2)(B); annual payment obligation, if any, to the been taken according to subsections (d) and (E) in the case of debtors falling within Fund, which determination shall be based on (m), the balance needed to meet this re- Subtier 2 of Tier I, an assignment of its as- the information received from the person quired minimum aggregate annual payment sets under section 203(b)(3)(B); and under this subsection and any other perti- shall be obtained from the defendant guaran- (F) in the case of debtors falling within nent information available to the Chief Ex- teed payment account established under sub- Subtier 3 of Tier I, a payment under section ecutive Officer and identified to the defend- section (k). 203(b)(4)(B), and a statement of how such ant participant. payment was calculated; and (ii) PUBLIC NOTICE.—Not later than 7 days (3) GUARANTEED PAYMENT SURCHARGE.—To (G) a signature page personally verifying after sending the notification of initial de- the extent the procedure set forth in para- the truth of the statements and estimates termination to defendant participants, the graph (2) is insufficient to satisfy the re- described under this paragraph, as required Chief Executive Officer shall publish in a quired minimum aggregate annual payment, under section 404 of the Sarbanes-Oxley Act newspaper with a circulation of at least after applicable reductions or adjustments of 2002 (15 U.S.C. 7201 et seq.). 500,000 and on the Internet a notice listing have been taken according to subsections (d) (3) INITIAL YEAR: TIER VII.—Not later than the defendant participants that have been and (m), the Chief Executive Officer shall un- 90 days after enactment of this Act, each de- sent such notification, and the initial deter- less the Chief Executive Officer implements fendant participant in Tier VII shall file mination identifying the tier and subtier as- a funding holiday under section 205(b), assess with the Chief Executive Officer— signment and annual payment obligation of a guaranteed payment surcharge under sub- (A) a good-faith estimate of all payments each identified participant. section (l). of the type described in section 203(h)(1) (as (B) NO RESPONSE; INCOMPLETE RESPONSE.— (i) PROCEDURES FOR MAKING PAYMENTS.— modified by section 203(h)(6)); If no response in accordance with paragraph (1) INITIAL YEAR: TIERS II–VI.— (B) a statement of revenues calculated in (5) is received from a defendant participant, (A) IN GENERAL.—Not later than 90 days accordance with sections 203(a)(2) and 203(h); or if the response is incomplete, the initial after enactment of this Act, each defendant and determination shall be based on the best in- participant that is included in Tiers II, III, (C) payment in the amount specified in formation available to the Chief Executive IV, V, or VI shall file with the Chief Execu- section 203(h). Officer. tive Officer— (4) NOTICE TO PARTICIPANTS.—Not later (C) PAYMENTS.—Within 30 days of receiving (i) a statement of whether the defendant than 240 days after enactment of this Act, a notice of initial determination requiring participant irrevocably elects to report on a the Chief Executive Officer shall— payment, the defendant participant shall pay consolidated basis under subsection (f); (A) directly notify all reasonably identifi- the Chief Executive Officer the amount re- (ii) a good-faith estimate of its prior asbes- able defendant participants of the require- quired by the notice, after deducting any tos expenditures; ment to submit information necessary to previous payment made by the participant (iii) a statement of its 2002 revenues, deter- calculate the amount of any required pay- under this subsection. If the amount that the mined in accordance with section 203(a)(2); ment to the Fund; and defendant participant is required to pay is (B) publish in a newspaper with a circula- less than any previous payment made by the (iv) payment in the amount specified in tion of at least 500,000 and on the Internet a participant under this subsection, the Chief section 203 for the lowest subtier of the tier notice— Executive Officer shall credit any excess within which the defendant participant falls, (i) setting forth the criteria in this Act, payment against the future payment obliga- except that if the defendant participant, or and as prescribed by the Chief Executive Of- tions of that defendant participant. The the affiliated group including the defendant ficer in accordance with this Act, for paying pendency of a petition for rehearing under participant, had 2002 revenues exceeding under this subtitle as a defendant partici- paragraph (10) shall not stay the obligation $3,000,000,000, it or its affiliated group shall pant and requiring any person who may be a of the participant to make the payment pay the amount specified for Subtier 3 of defendant participant to submit such infor- specified in the Chief Executive Officer’s no- Tiers II, III, or IV or Subtier 2 of Tiers V or mation; and tice. VI, depending on the applicable Tier; and (ii) that includes a list of all defendant par- (7) EXEMPTIONS FOR INFORMATION RE- (v) a signature page personally verifying ticipants notified by the Chief Executive Of- QUIRED.— the truth of the statements and estimates ficer under subparagraph (A), and provides (A) PRIOR ASBESTOS EXPENDITURES.—In lieu described under this subparagraph, as re- for 30 days for the submission by the public of submitting information related to prior quired under section 404 of the Sarbanes- of comments or information regarding the asbestos expenditures as may be required for Oxley Act of 2002 (15 U.S.C. 7201 et seq.). completeness and accuracy of the list of purposes of this subtitle, a non-debtor de- (B) RELIEF.— identified defendant participants. fendant participant may consent to be as- (i) IN GENERAL.—The Chief Executive Offi- (5) RESPONSE REQUIRED.— signed to Tier II. cer shall establish procedures to grant a de- (A) IN GENERAL.—Any person who receives (B) REVENUES.—In lieu of submitting infor- fendant participant relief from its initial notice under paragraph (4)(A), and any other mation related to revenues as may be re- payment obligation if the participant shows person meeting the criteria specified in the quired for purposes of this subtitle, a non- that— notice published under paragraph (4)(B), debtor defendant participant may consent to (I) the participant is likely to qualify for a shall provide the Chief Executive Officer be assigned to Subtier 1 of the defendant par- financial hardship adjustment; and with an address to send any notice from the ticipant’s applicable tier. (II) failure to provide interim relief would Chief Executive Officer in accordance with (8) NEW INFORMATION.— cause severe irreparable harm. this Act and all the information required by (A) EXISTING PARTICIPANT.—The Chief Ex- (ii) JUDICIAL RELIEF.—The Chief Executive the Chief Executive Officer in accordance ecutive Officer shall adopt procedures for re- Officer’s refusal to grant relief under clause with this subsection no later than the earlier quiring additional payment, or refunding (i) is subject to immediate judicial review of— amounts already paid, based on new informa- under section 303. (i) 30 days after the receipt of direct notice; tion received. (2) INITIAL YEAR: TIER I.—Not later than 60 or (B) ADDITIONAL PARTICIPANT.—If the Chief days after enactment of this Act, each debt- (ii) 30 days after the publication in a news- Executive Officer, at any time, receives in- or shall file with the Chief Executive Offi- paper with a circulation of at least 500,000 formation that an additional person may cer— and on the Internet. qualify as a defendant participant, the Chief (A) a statement identifying all bankruptcy (B) CERTIFICATION.—The response sub- Executive Officer shall require such person cases associated with the debtor; mitted under subparagraph (A) shall be to submit information necessary to deter- (B) a statement whether its prior asbestos signed by a responsible corporate officer, mine whether that person is required to expenditures exceed $1,000,000; general partner, proprietor, or individual of make payments, and in what amount, under (C) a statement whether it has material similar authority, who shall certify under this subtitle and shall make any determina- continuing business operations and, if not, penalty of law the completeness and accu- tion or take any other act consistent with whether it holds cash or other assets that racy of the information submitted. this Act based on such information or any have been allocated or earmarked for asbes- (C) CONSENT TO AUDIT AUTHORITY.—The re- other information available to the Chief Ex- tos settlements; sponse submitted under subparagraph (A) ecutive Officer with respect to such person. (D) in the case of debtors falling within shall include, on behalf of the defendant par- (9) SUBPOENAS.—The Chief Executive Offi- Subtier 1 of Tier I— ticipant or affiliated group, a consent to the cer may request the Attorney General to

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00081 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1216 CONGRESSIONAL RECORD — SENATE February 14, 2006 subpoena persons to compel testimony, (A) to ensure the minimum aggregate an- (ii) the control of the design, specification, records, and other information relevant to nual payment required under subsection (h), or manufacture of any product; or its responsibilities under this section. The after applicable reductions or adjustments (iii) the sale or resale of any product Attorney General may enforce such sub- have been taken according to subsections (d) under, as part of, or under the auspices of, its poena in appropriate proceedings in the and (m) is reached each year; and own brand, trademark, or service mark; and United States district court for the district (B) if the condition set forth in subsection (D) who is not subject to assignment under in which the person to whom the subpoena (a)(2) is met, for any purpose that the Fund section 202 to Tier I, II, III or VII. was addressed resides, was served, or trans- may serve under this Act. (2) TIER REASSIGNMENT FOR DISTRIBUTORS.— acts business. (l) GUARANTEED PAYMENT SURCHARGE.— (A) IN GENERAL.—Notwithstanding section (10) REHEARING.—A defendant participant (1) IN GENERAL.—To the extent there are 202, the Chief Executive Officer shall assign a has a right to obtain rehearing of the Chief insufficient monies in the defendant guaran- distributor to a Tier for purposes of this title Executive Officer’s determination under this teed payment account established in sub- under the procedures set forth in this para- subsection of the applicable tier or subtier, section (k) to attain the minimum aggregate graph. of the Chief Executive Officer’s determina- annual payment required under subsection (B) DESIGNATION.—After a final determina- tion under subsection (d) of a financial hard- (h) in any given year, the Chief Executive Of- tion by the Chief Executive Officer under ship or inequity adjustment, and of the Chief ficer shall, unless the Chief Executive Officer section 204(i), any person who is, or any af- Executive Officer’s determination under sub- implements a funding holiday under section filiated group in which every member is, a section (m) of a distributor’s adjustment, if 205(b), impose on each defendant participant distributor may apply to the Chief Executive the request for rehearing is filed within 30 a surcharge as necessary to raise the balance Officer for adjustment of its Tier assignment days after the defendant participant’s re- required to attain the minimum aggregate under this subsection. Such application shall ceipt of notice from the Chief Executive Offi- annual payment required under subsection be prepared in accordance with such proce- cer of the determination. A defendant partic- (h) as provided in this subsection. Any such dures as the Chief Executive Officer shall ipant may not file an action under section surcharge shall be imposed on a pro rata promulgate by rule. Once the Chief Execu- 303 unless the defendant participant requests basis, in accordance with each defendant par- tive Officer designates a person or affiliated a rehearing under this paragraph. The Chief ticipant’s relative annual liability under sec- group as a distributor under this subsection, such designation and the adjustment of tier Executive Officer shall publish in a news- tions 202 and 203 (as modified by subsections assignment under this subsection are final. paper with a circulation of at least 500,000 (b), (d), (f), (g), and (m) of this section). (C) PAYMENTS.—Any person or affiliated and on the Internet a notice of any change in (2) LIMITATION.— group that seeks adjustment of its Tier as- a defendant participant’s tier or subtier as- (A) IN GENERAL.—In no case shall the Chief signment under this subsection shall pay all signment or payment obligation as a result Executive Officer impose a surcharge under amounts required of it under this title until of a rehearing. this subsection on any defendant participant a final determination by the Chief Executive (j) DEFENDANT HARDSHIP AND INEQUITY AD- included in Subtier 3 of Tiers V or VI as de- Officer is made under this subsection. Such JUSTMENT ACCOUNT.— scribed under section 203. payments may not be stayed pending any ap- (1) IN GENERAL.—To the extent the total (B) REALLOCATION.—Any amount not im- peal. The Chief Executive Officer shall grant payments by defendant participants in any posed under subparagraph (A) shall be reallo- any person or affiliated group a refund or given year exceed the minimum aggregate cated on a pro-rata basis, in accordance with credit of any payments made if such adjust- annual payments required under subsection each defendant participant’s (other than a ment results in a lower payment obligation. (h), excess monies up to a maximum of defendant participant described under sub- (D) ADJUSTMENT.—Subject to paragraph $300,000,000 in any such year shall be placed paragraph (A)) relative annual liability (3), any person or affiliated group that the in a defendant hardship and inequity adjust- under sections 202 and 203 (as modified by Chief Executive Officer has designated as a ment account established within the Fund subsections (b), (d), (f), and (g) of this sec- distributor under this subsection shall be by the Chief Executive Officer. tion). given an adjustment of Tier assignment as (2) USE OF ACCOUNT MONIES.—Monies from (3) CERTIFICATION.— follows: the defendant hardship and inequity adjust- (A) IN GENERAL.—Before imposing a guar- (i) A distributor that but for this sub- ment account shall be preserved and admin- anteed payment surcharge under this sub- section would be assigned to Tier IV shall be istered like the remainder of the Fund, but section, the Chief Executive Officer shall deemed assigned to Tier V. shall be reserved and may be used only— certify that he or she has used all reasonable (ii) A distributor that but for this sub- (A) to make up for any relief granted to a efforts to collect mandatory payments for all section would be assigned to Tier V shall be defendant participant for severe financial defendant participants, including by using deemed assigned to Tier VI. hardship or demonstrated inequity under the authority in subsection (i)(9) of this sec- (iii) A distributor that but for this sub- subsection (d) or to reimburse any defendant tion and section 223. section would be assigned to Tier VI shall be participant granted such relief after its pay- (B) NOTICE AND COMMENT.—Before making a deemed assigned to no Tier and shall have no ment of the amount otherwise due; and final certification under subparagraph (C), obligation to make any payment to the Fund (B) if the condition set forth in subsection the Chief Executive Officer shall publish in a under this Act. (a)(2) is met, for any purpose that the Fund newspaper with a circulation of at least (E) EXCLUSIVE TO INEQUITY ADJUSTMENT.— may serve under this Act. 500,000 and on the Internet a notice of a pro- Any person or affiliated group designated by (3) CARRYOVER OF UNUSED FUNDS.—To the posed certification and provide in such no- the Chief Executive Officer as a distributor extent the Chief Executive Officer does not, tice for a public comment period of 30 days. under this subsection shall not be eligible for in any given year, use all of the funds allo- (C) FINAL CERTIFICATION.— an inequity adjustment under subsection cated to the account under paragraph (1) for (i) IN GENERAL.—The Chief Executive Offi- 204(d). adjustments granted under subsection (d), cer shall publish a notice of the final certifi- (3) LIMITATION ON ADJUSTMENTS.—The ag- remaining funds in the account shall be car- cation in a newspaper with a circulation of gregate total of distributor adjustments ried forward for use by the Chief Executive at least 500,000 and on the Internet after con- under this subsection in effect in any given Officer for adjustments in subsequent years. sideration of all comments submitted under year shall not exceed $50,000,000. If the aggre- (k) DEFENDANT GUARANTEED PAYMENT AC- subparagraph (B). gate total of distributors adjustments under COUNT.— (ii) WRITTEN NOTICE.—Not later than 30 this subsection would otherwise exceed (1) IN GENERAL.—Subject to subsections (h) days after publishing any final certification $50,000,000, then each distributor’s adjust- and (j), if there are excess monies paid by de- under clause (i), the Chief Executive Officer ment shall be reduced pro rata until the ag- fendant participants in any given year, in- shall provide each defendant participant gregate of all adjustments equals $50,000,000. cluding any bankruptcy trust credits that with written notice of that defendant par- (4) REHEARING.—A defendant participant may be due under section 222(d), such mon- ticipant’s payment, including the amount of has a right to obtain a rehearing of the Chief ies— any surcharge. Executive Officer’s determination on an ad- (A) at the discretion of the Chief Executive (m) ADJUSTMENTS FOR DISTRIBUTORS.— justment under this subsection under the Officer, may be used to provide additional (1) DEFINITION.—In this subsection, the procedures prescribed in subsection (i)(10). adjustments under subsection (d), up to a term ‘‘distributor’’ means a person— SEC. 205. STEPDOWNS AND FUNDING HOLIDAYS. maximum aggregate of $50,000,000 in such (A) whose prior asbestos expenditures arise (a) STEPDOWNS.— year; and exclusively from the sale of products manu- (1) IN GENERAL.—Subject to paragraph (2), (B) to the extent not used under subpara- factured by others; the minimum aggregate annual funding obli- graph (A), shall be placed in a defendant (B) who did not prior to December 31, 2002, gation under section 204(h) shall be reduced guaranteed payment account established sell raw asbestos or a product containing by 10 percent of the initial minimum aggre- within the Fund by the Chief Executive Offi- more than 95 percent asbestos by weight; gate funding obligation at the end of the cer. (C) whose prior asbestos expenditures did tenth, fifteenth, twentieth, and twenty-fifth (2) USE OF ACCOUNT MONIES.—Monies from not arise out of— years after the date of enactment of this the defendant guaranteed payment account (i) the manufacture, installation, repair, Act. The reductions under this paragraph shall be preserved and administered like the reconditioning, maintaining, servicing, con- shall be applied on an equal pro rata basis to remainder of the Fund, but shall be reserved structing, or remanufacturing of any prod- the funding obligations of all defendant par- and may be used only— uct; ticipants, except with respect to defendant

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00082 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1217 participants in Tier 1, Subtiers 2 and 3, and SEC. 206. ACCOUNTING TREATMENT. pation of a majority of the members of the class action trusts. Defendant participants payment obliga- Committee. (2) LIMITATION.—The Chief Executive Offi- tions to the Fund shall be subject to dis- SEC. 212. DUTIES OF ASBESTOS INSURERS COM- cer shall suspend, cancel, reduce, or delay counting under the applicable accounting MITTEE. any reduction under paragraph (1) if at any guidelines for generally accepted accounting (a) DETERMINATION OF INSURER PAYMENT time the Chief Executive Officer finds, in ac- purposes and statutory accounting purposes OBLIGATIONS.— cordance with subsection (c), that such ac- for each defendant participant. This section (1) IN GENERAL.— tion is necessary and appropriate to ensure shall in no way reduce the amount of mone- (A) DEFINITIONS.—For the purposes of this that the assets of the Fund and expected fu- tary payments to the Fund by defendant par- Act, the terms ‘‘insurer’’ and ‘‘insurer par- ture payments remain sufficient to satisfy ticipants as required under section 202(a)(2). ticipant’’ shall, unless stated otherwise, in- the Fund’s anticipated obligations. Subtitle B—Asbestos Insurers Committee clude direct insurers and reinsurers, as well (b) FUNDING HOLIDAYS.— as any run-off entity established, in whole or SEC. 210. DEFINITION. (1) IN GENERAL.—If the Chief Executive Of- in part, to review and pay asbestos claims. In this subtitle, the term ‘‘captive insur- ficer determines, at any time after 10 years (B) PROCEDURES FOR DETERMINING INSURER ance company’’ means a company— following the date of enactment of this Act, PAYMENTS.—The Committee shall determine that the assets of the Fund at the time of (1) whose entire beneficial interest is the amount that each insurer participant such determination and expected future pay- owned on the date of enactment of this Act, shall be required to pay into the Fund under ments, taking into consideration any reduc- directly or indirectly, by a defendant partici- the procedures described in this section. The tions under subsection (a), are sufficient to pant or by the ultimate parent or the affili- Committee shall make this determination by satisfy the Fund’s anticipated obligations ated group of a defendant participant; first promulgating a rule establishing a without the need for all, or any portion of, (2) whose primary commercial business methodology for allocation of payments that year’s payment otherwise required during the period from calendar years 1940 among insurer participants and then apply- under this subtitle, the Chief Executive Offi- through 1986 was to provide insurance to its ing such methodology to determine the indi- cer shall reduce or waive all or any part of ultimate parent or affiliated group, or any vidual payment for each insurer participant. the payments required from defendant par- portion of the affiliated group or a combina- The methodology may include 1 or more al- ticipants for that year. tion thereof; and location formulas to be applied to all insurer (2) ANNUAL REVIEW.—The Chief Executive (3) that was incorporated or operating no participants or groups of similarly situated Officer shall undertake the review required later than December 31, 2003. participants. The Committee’s rule shall in- by this subsection and make the necessary SEC. 211. ESTABLISHMENT OF ASBESTOS INSUR- clude a methodology for adjusting payments determination under paragraph (1) every ERS COMMITTEE. by insurer participants to make up, during year. (a) ESTABLISHMENT.—There is established the first 5 years of the life of the Fund and (3) LIMITATIONS ON FUNDING HOLIDAYS.— the Asbestos Insurers Committee (referred to any subsequent years as provided in section Any reduction or waiver of the defendant in this subtitle as the ‘‘Committee’’) to carry 405(e) for any reduction in an insurer partici- participants’ funding obligations shall— out the duties described in section 212. pant’s annual allocated amount caused by (A) be made only to the extent the Chief (b) MEMBERSHIP.— the granting of a financial hardship or excep- Executive Officer determines that the Fund (1) APPOINTMENT.—The Committee shall be tional circumstance adjustment under this will still be able to satisfy all of its antici- composed of 5 members who shall be ap- section, and any amount by which aggregate pated obligations; and pointed by the President, by and with the ad- insurer payments fall below the level re- (B) be applied on an equal pro rata basis to vice and consent of the Senate. quired under paragraph (3)(C) by reason of the funding obligations of all defendant par- (2) QUALIFICATIONS.— the failure or refusal of any insurer partici- ticipants, except with respect to defendant (A) EXPERTISE.—Members of the Com- pant to make a required payment, or for any participants in Subtiers 2 and 3 of Tier I and mittee shall have sufficient expertise to ful- other reason that causes such payments to class action trusts, for that year. fill their responsibilities under this subtitle. fall below the level required under paragraph (4) NEW INFORMATION.—If at any time the (B) CONFLICT OF INTEREST.— (3)(C). The Committee shall conduct a thor- Chief Executive Officer determines that a re- (i) IN GENERAL.—No member of the Com- ough study (within the time limitations duction or waiver under this section may mittee appointed under paragraph (1) may be under this subparagraph) of the accuracy of cause the assets of the Fund and expected fu- an employee or immediate family member of the reserve allocation of each insurer partic- ture payments to decrease to a level at an employee of an insurer participant. No ipant, and may request information from the which the Fund may not be able to satisfy member of the Committee shall be a share- Securities and Exchange Committee or any all of its anticipated obligations, the Chief holder of any insurer participant. No mem- State regulatory agency. Under this proce- Executive Officer shall revoke all or any ber of the Committee shall be a former offi- dure, not later than 120 days after the initial part of such reduction or waiver to the ex- cer or director, or a former employee or meeting of the Committee, the Committee tent necessary to ensure that the Fund’s ob- former shareholder of any insurer partici- shall commence a rulemaking proceeding ligations are met. Such revocations shall be pant who was such an employee, shareholder, under section 213(a) to propose and adopt a applied on an equal pro rata basis to the officer, or director at any time during the 2- methodology for allocating payments among funding obligations of all defendant partici- year period ending on the date of the ap- insurer participants. In proposing an alloca- pants, except defendant participants in pointment, unless that is fully disclosed be- tion methodology, the Committee may con- Subtiers 2 and 3 of Tier I and class action fore consideration in the Senate of the nomi- sult with such actuaries and other experts as trusts, for that year. nation for appointment to the Committee. it deems appropriate. After hearings and (c) CERTIFICATION.— (ii) DEFINITION.—In clause (i), the term public comment on the proposed allocation (1) IN GENERAL.—Before suspending, can- ‘‘shareholder’’ shall not include a broadly methodology, the Committee shall as celing, reducing, or delaying any reduction based mutual fund that includes the stocks promptly as possible promulgate a final rule under subsection (a) or granting or revoking of insurer participants as a portion of its establishing such methodology. After pro- a reduction or waiver under subsection (b), overall holdings. mulgation of the final rule, the Committee the Chief Executive Officer shall certify that (C) FEDERAL EMPLOYMENT.—A member of shall determine the individual payment of the requirements of this section are satis- the Committee may not be an officer or em- each insurer participant under the proce- fied. ployee of the Federal Government, except by dures set forth in subsection (b). (2) NOTICE AND COMMENT.—Before making a reason of membership on the Committee. (C) SCOPE.—Every insurer, reinsurer, and final certification under this subsection, the (3) PERIOD OF APPOINTMENT.—Members runoff entity with asbestos-related obliga- Chief Executive Officer shall publish in a shall be appointed for the life of the Com- tions in the United States shall be subject to newspaper with a circulation of at least mittee. the Committee’s and Chief Executive Offi- 500,000 and on the Internet a proposed certifi- (4) VACANCIES.—Any vacancy in the Com- cer’s authority under this Act, including al- cation and a statement of the basis therefor mittee shall be filled in the same manner as location determinations, and shall be re- and provide in such notice for a public com- the original appointment. quired to fulfill its payment obligation with- ment period of 30 days. (5) CHAIRMAN.—The President shall select a out regard as to whether it is licensed in the (3) FINAL CERTIFICATION.— Chairman from among the members of the United States. Every insurer participant not (A) IN GENERAL.—The Chief Executive Offi- Committee. licensed or domiciled in the United States cer shall publish a notice of the final certifi- (c) MEETINGS.— shall, upon the first payment to the Fund, cation in a newspaper with a circulation of (1) INITIAL MEETING.—Not later than 30 submit a written consent to the Committee’s at least 500,000 and on the Internet after con- days after the date on which all members of and Chief Executive Officer’s authority sideration of all comments submitted under the Committee have been appointed, the under this Act, and to the jurisdiction of the paragraph (2). Committee shall hold its first meeting. courts of the United States for purposes of (B) WRITTEN NOTICE.—Not later than 30 (2) SUBSEQUENT MEETINGS.—The Committee enforcing this Act, in a form determined by days after publishing any final certification shall meet at the call of the Chairman, as the Chief Executive Officer. Any insurer par- under subparagraph (A), the Chief Executive necessary to accomplish the duties under ticipant refusing to provide a written con- Officer shall provide each defendant partici- section 212. sent shall be subject to fines and penalties as pant with written notice of that defendant’s (3) QUORUM.—No business may be con- provided in section 223. funding obligation for that year. ducted or hearings held without the partici- (D) ISSUERS OF FINITE RISK POLICIES.—

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(i) IN GENERAL.—The issuer of any policy of (ii) INAPPLICABILITY OF SECTION 202.—Since participant of its future liability in the tort retrospective reinsurance purchased by an insurers may be subject in certain jurisdic- system in the absence of the Fund; insurer participant or its affiliate after 1990 tions to direct action suits, and it is not the (II) an offset credit as described in subpara- that provides for a risk or loss transfer to in- intent of this Act to impose upon an insurer, graphs (A) and (C) of subsection (b)(4); or sure for asbestos losses and other losses due to its operation as an insurer, payment (III) other exceptional circumstances. (both known and unknown), including those obligations to the Fund in situations where The Committee may determine whether to the insurer is the subject of a direct action, policies commonly referred to as ‘‘finite grant an adjustment and the size of any such no insurer subject to mandatory payments risk’’, ‘‘aggregate stop loss’’, ‘‘aggregate ex- adjustment, but except as provided under under this section shall also be liable for cess of loss’’, or ‘‘loss portfolio transfer’’ paragraph (1)(B), subsection (f)(3), and sec- payments to the Fund as a defendant partici- policies, shall be obligated to make pay- tion 405(e), any such adjustment shall not af- ments required under this Act directly to the pant under section 202. (B) INSURER PARTICIPANT ALLOCATION METH- fect the aggregate payment obligations of in- Fund on behalf of the insurer participant surer participants specified in paragraph who is the beneficiary of such policy, subject ODOLOGY.— (i) IN GENERAL.—The Committee shall es- (2)(A) and subparagraph (C) of this para- to the underlying retention and the limits of graph. liability applicable to such policy. tablish the payment obligations of indi- vidual insurer participants to reflect, on an (iv) TIME PERIOD OF ADJUSTMENT.—Except (ii) PAYMENTS.—Payments to the Fund re- for adjustments for offset credits, adjust- quired under this Act shall be treated as loss equitable basis, the relative tort system li- ments granted under this subsection shall payments for asbestos bodily injury (as if ability of the participating insurers in the absence of this Act, considering and have a term not to exceed 3 years. An insurer such payments were incurred as liabilities weighting, as appropriate (but exclusive of participant may renew its adjustment by imposed in the tort system) and shall not be workers’ compensation), such factors as— demonstrating to the Chief Executive Officer subject to exclusion under policies described (I) historic premium for lines of insurance that it remains justified. under clause (i) as a liability with respect to associated with asbestos exposure over rel- (F) FUNDING HOLIDAYS.— tax or assessment. Within 90 days after the evant periods of time; (i) IN GENERAL.—If the Chief Executive Of- scheduled date to make an annual payment (II) recent loss experience for asbestos li- to the Fund, the insurer participant shall, at ficer determines, at any time after 10 years ability; its discretion, direct the reinsurer issuing following the date of enactment of this Act, (III) amounts reserved for asbestos liabil- that the assets of the Fund at the time of such policy to pay all or a portion of the an- ity; nual payment directly to the Fund up to the such determination and expected future pay- (IV) the likely cost to each insurer partici- ments are sufficient to satisfy the Fund’s an- full applicable limits of liability under the pant of its future liabilities under applicable policy. The reinsurer issuing such policy ticipated obligations without the need for insurance policies; and all, or any portion of, that year’s payment shall be obligated to make such payments di- (V) any other factor the Committee may rectly to the Fund and shall be subject to otherwise required under this subtitle, the determine is relevant and appropriate. Chief Executive Officer shall reduce or waive the enforcement provisions under section (ii) DETERMINATION OF RESERVES.—The all or any part of the payments required 223. The insurer participant shall remain ob- Committee may establish procedures and from insurer participants for that year. ligated to make payment to the Fund of that standards for determination of the asbestos (ii) ANNUAL REVIEW.—The Chief Executive portion of the annual payment not directed reserves of insurer participants. The reserves Officer shall undertake the review required to the issuer of such reinsurance policy. of a United States licensed reinsurer that is by this subsection and make the necessary (2) AMOUNT OF PAYMENTS.— wholly owned by, or under common control (A) AGGREGATE PAYMENT OBLIGATION.—The of, a United States licensed direct insurer determination under clause (i) every year. total payment required of all insurer partici- shall be included as part of the direct insur- (iii) LIMITATIONS OF FUNDING HOLIDAYS.— pants over the life of the Fund shall be equal er’s reserves when the reinsurer’s financial Any reduction or waiver of the insurer par- to $46,025,000,000, less any bankruptcy trust results are included as part of the direct in- ticipants’ funding obligations shall— credits under section 222(d). surer’s United States operations, as reflected (I) be made only to the extent the Chief (B) ACCOUNTING STANDARDS.—In deter- in footnote 33 of its filings with the National Executive Officer determines that the Fund mining the payment obligations of partici- Association of Insurance Commissioners or will still be able to satisfy all of its antici- pants that are not licensed or domiciled in in published financial statements prepared pated obligations; and the United States or that are runoff entities, in accordance with generally accepted ac- (II) be applied on an equal pro rata basis to the Committee shall use accounting stand- counting principles. the funding obligations of all insurer partici- ards required for United States licensed di- (C) PAYMENT SCHEDULE.—The aggregate an- pants for that year. rect insurers. nual amount of payments by insurer partici- (iv) NEW INFORMATION.—If at any time the (C) CAPTIVE INSURANCE COMPANIES.—No pants over the life of the Fund shall be as Chief Executive Officer determines that a re- payment to the Fund shall be required from follows: duction or waiver under this section may a captive insurance company, unless and (i) For years 1 and 2, $2,700,000,000 annually. cause the assets of the Fund and expected fu- only to the extent a captive insurance com- (ii) For years 3 through 5, $5,075,000,000 an- ture payments to decrease to a level at pany, on the date of enactment of this Act, nually. which the Fund may not be able to satisfy has liability, directly or indirectly, for any (iii) For years 6 through 27, $1,147,000,000 all of its anticipated obligations, the Chief asbestos claim of a person or persons other annually. Executive Officer shall revoke all or any than and unaffiliated with its ultimate par- (iv) For year 28, $166,000,000. part of such reduction or waiver to the ex- ent or affiliated group or pool in which the (D) CERTAIN RUNOFF ENTITIES.—A runoff en- tent necessary to ensure that the Fund’s ob- ultimate parent participates or participated, tity shall include any direct insurer or rein- ligations are met. Such revocations shall be or unaffiliated with a person that was its ul- surer whose asbestos liability reserves have applied on an equal pro rata basis to the timate parent or a member of its affiliated been transferred, directly or indirectly, to funding obligations of all insurer partici- group or pool at the time the relevant insur- the runoff entity and on whose behalf the pants for that year. ance or reinsurance was issued by the cap- runoff entity handles or adjusts and, where (b) PROCEDURE FOR NOTIFYING INSURER tive insurance company. appropriate, pays asbestos claims. (D) SEVERAL LIABILITY.—Unless otherwise (E) FINANCIAL HARDSHIP AND EXCEPTIONAL PARTICIPANTS OF INDIVIDUAL PAYMENT OBLI- provided under this Act, each insurer partici- CIRCUMSTANCE ADJUSTMENTS.— GATIONS.— pant’s obligation to make payments to the (i) IN GENERAL.—Under the procedures es- (1) NOTICE TO PARTICIPANTS.—Not later Fund is several. Unless otherwise provided tablished in subsection (b), an insurer partic- than 30 days after promulgation of the final under this Act, there is no joint liability, ipant may seek adjustment of the amount of rule establishing an allocation methodology and the future insolvency by any insurer its payments based on exceptional cir- under subsection (a)(1), the Committee participant shall not affect the payment re- cumstances or severe financial hardship. shall— quired of any other insurer participant. (ii) FINANCIAL ADJUSTMENTS.—An insurer (A) directly notify all reasonably identifi- (3) PAYMENT OF CRITERIA.— participant may qualify for an adjustment able insurer participants of the requirement (A) INCLUSION IN INSURER PARTICIPANT CAT- based on severe financial hardship by dem- to submit information necessary to calculate EGORY.— onstrating that payment of the amounts re- the amount of any required payment to the (i) IN GENERAL.—Insurers that have paid, or quired by the Committee’s methodology Fund under the allocation methodology; and been assessed by a legal judgment or settle- would jeopardize the solvency of such partic- (B) publish in a newspaper with a circula- ment, at least $1,000,000 in defense and in- ipant. tion of at least 500,000 and on the Internet a demnity costs before the date of enactment (iii) EXCEPTIONAL CIRCUMSTANCE ADJUST- notice— of this Act in response to claims for com- MENT.—An insurer participant may qualify (i) requiring any person who may be an in- pensation for asbestos injuries arising from a for an adjustment based on exceptional cir- surer participant (as determined by criteria policy of liability insurance or contract of li- cumstances by demonstrating— outlined in the notice) to submit such infor- ability reinsurance or retrocessional reinsur- (I) that the amount of its payments under mation; and ance shall be insurer participants in the the Committee’s allocation methodology is (ii) that includes a list of all insurer par- Fund. Other insurers shall be exempt from exceptionally inequitable when measured ticipants notified by the Committee under mandatory payments. against the amount of the likely cost to the subparagraph (A), and provides for 30 days

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00084 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1219 for the submission of comments or informa- surer participant for the amount of any as- (B) the Committee on the Judiciary of the tion regarding the completeness and accu- bestos-related payments it made or was le- House of Representatives; and racy of the list of identified insurer partici- gally obligated to make, including payments (C) the Chief Executive Officer. pants. released from an escrow, as the result of a (2) CONTENTS.—The report under paragraph (2) RESPONSE REQUIRED BY INDIVIDUAL IN- bankruptcy confirmed after May 22, 2003, but (1) shall state the amount that each insurer SURER PARTICIPANTS.— before the date of enactment of this Act. participant is required to pay to the Fund, (A) IN GENERAL.—Any person who receives (5) EXAMINATIONS AND SUBPOENAS.— including the payment schedule for such notice under paragraph (1)(A), and any other (A) EXAMINATIONS.—The Committee may payments. person meeting the criteria specified in the conduct examinations of the books and (e) INTERIM PAYMENTS.— notice published under paragraph (1)(B), records of insurer participants to determine (1) AMOUNT OF INTERIM PAYMENT.—Within shall respond by providing the Committee the completeness and accuracy of informa- 90 days after the date of enactment of this with all the information requested in the no- tion submitted, or required to be submitted, Act, insurer participants shall make an ag- tice under a schedule or by a date estab- to the Committee for purposes of deter- gregate payment to the Fund not to exceed lished by the Committee. mining participant payments. 50 percent of the aggregate funding obliga- (B) CERTIFICATION.—The response sub- (B) SUBPOENAS.—The Committee may re- tion specified under subsection (a)(3)(C) for mitted under subparagraph (A) shall be quest the Attorney General to subpoena per- year 1. signed by a responsible corporate officer, sons to compel testimony, records, and other (2) RESERVE INFORMATION.—Within 30 days general partner, proprietor, or individual of information relevant to its responsibilities after the date of enactment of this Act, each similar authority, who shall certify under under this section. The Attorney General insurer participant shall submit to the Chief penalty of law the completeness and accu- may enforce such subpoena in appropriate Executive Officer a certified statement of its racy of the information submitted. proceedings in the United States district net held reserves for asbestos liabilities as of (3) NOTICE TO INSURER PARTICIPANTS OF INI- court for the district in which the person to December 31, 2004. TIAL PAYMENT DETERMINATION.— whom the subpoena was addressed resides, (3) ALLOCATION OF INTERIM PAYMENT.—The (A) IN GENERAL.— was served, or transacts business. Chief Executive Officer shall allocate the in- terim payment among the individual insurer (i) NOTICE TO INSURERS.—Not later than 120 (6) ESCROW PAYMENTS.—Without regard to days after receipt of the information re- an insurer participant’s payment obligation participants on an equitable basis using the quired by paragraph (2), the Committee shall under this section, any escrow or similar ac- net held asbestos reserve information pro- send each insurer participant a notice of ini- count established before the date of enact- vided by insurer participants under sub- section (a)(3)(B). Within 60 days after the tial determination requiring payments to ment of this Act by an insurer participant in date of enactment of this Act, the Chief Ex- the Fund, which shall be based on the infor- connection with an asbestos trust fund that ecutive Officer shall publish in a newspaper mation received from the participant in re- has not been judicially confirmed by final with a circulation of at least 500,000 and on sponse to the Committee’s request for infor- order by the date of enactment of this Act the Internet the name of each insurer partic- mation. An insurer participant’s payments shall be the property of the insurer partici- ipant, and the amount of the insurer partici- shall be payable over the schedule estab- pant and returned to that insurer partici- pant’s allocated share of the interim pay- lished in subsection (a)(3)(C), in annual pant. amounts proportionate to the aggregate an- ment. The use of net held asbestos reserves (7) NOTICE TO INSURER PARTICIPANTS OF nual amount of payments for all insurer par- as the basis to determine an interim alloca- FINAL PAYMENT DETERMINATIONS.—Not later ticipants for the applicable year. tion shall not be binding on the Chief Execu- than 60 days after the notice of initial deter- (ii) PUBLIC NOTICE.—Not later than 7 days tive Officer in the determination of an ap- mination is sent to the insurer participants, after sending the notification of initial de- propriate final allocation methodology under the Committee shall send each insurer par- termination to insurer participants, the this section. All payments required under ticipant a notice of final determination. Committee shall publish in a newspaper with this paragraph shall be credited against the a circulation of at least 500,000 and on the (c) INSURER PARTICIPANTS VOLUNTARY AL- participant’s ultimate payment obligation to Internet a notice listing the insurer partici- LOCATION AGREEMENT.— the Fund established by the Committee. If pants that have been sent such notification, (1) IN GENERAL.—Not later than 30 days an interim payment exceeds the ultimate and the initial determination on the pay- after the Committee proposes its rule estab- payment, the Fund shall pay interest on the ment obligation of each identified partici- lishing an allocation methodology under sub- amount of the overpayment at a rate deter- pant. section (a)(1), direct insurer participants li- mined by the Chief Executive Officer. If the (B) NO RESPONSE; INCOMPLETE RESPONSE.— censed or domiciled in the United States, ultimate payment exceeds the interim pay- If no response is received from an insurer other direct insurer participants, reinsurer ment, the participant shall pay interest on participant, or if the response is incomplete, participants licensed or domiciled in the the amount of the underpayment at the the initial determination requiring a pay- United States, or other reinsurer partici- same rate. Any participant may seek an ex- ment from the insurer participant shall be pants, may submit an allocation agreement, emption from or reduction in any payment based on the best information available to approved by all of the participants in the ap- required under this subsection under the fi- the Committee. plicable group, to the Committee. nancial hardship and exceptional cir- (4) COMMITTEE REVIEW, REVISION, AND FI- (2) ALLOCATION AGREEMENT.—To the extent cumstance standards established under sub- NALIZATION OF INITIAL PAYMENT DETERMINA- the participants in any such applicable group section (a)(3)(E). TIONS.— voluntarily agree upon an allocation ar- (4) APPEAL OF INTERIM PAYMENT DECI- (A) COMMENTS FROM INSURER PARTICI- rangement, any such allocation agreement SIONS.—A decision by the Chief Executive Of- PANTS.—Not later than 30 days after receiv- shall only govern the allocation of payments ficer to establish an interim payment obliga- ing a notice of initial determination from within that group and shall not determine tion shall be considered final agency action the Committee, an insurer participant may the aggregate amount due from that group. and reviewable under section 303, except that provide the Committee with additional infor- (3) CERTIFICATION.—The Committee shall the reviewing court may not stay an interim mation to support adjustments to the re- determine whether an allocation agreement payment during the pendency of the appeal. quired payments to reflect severe financial submitted under subparagraph (A) meets the (f) TRANSFER OF AUTHORITY FROM THE COM- hardship or exceptional circumstances, in- requirements of this subtitle and, if so, shall MITTEE TO THE CHIEF EXECUTIVE OFFICER.— cluding the provision of an offset credit for certify the agreement as establishing the al- (1) IN GENERAL.—Upon termination of the an insurer participant for the amount of any location methodology governing the indi- Committee under section 215, the Chief Exec- asbestos-related payments it made or was le- vidual payment obligations of the partici- utive Officer shall assume all the respon- gally obligated to make, including payments pants who are parties to the agreement. The sibilities and authority of the Committee, released from an escrow, as the result of a authority of the Committee under this sub- except that the Chief Executive Officer shall bankruptcy judicially confirmed after May title shall, with respect to participants who not have the power to modify the allocation 22, 2003, but before the date of enactment of are parties to a certified allocation agree- methodology established by the Committee this Act. ment, terminate on the day after the Com- or by certified agreement or to promulgate a (B) ADDITIONAL PARTICIPANTS.—If, before mittee certifies such agreement. Under sub- rule establishing any such methodology. the final determination of the Committee, section (f), the Chief Executive Officer shall (2) FINANCIAL HARDSHIP AND EXCEPTIONAL the Committee receives information that an assume responsibility, if necessary, for cal- CIRCUMSTANCE ADJUSTMENTS.—Upon termi- additional person may qualify as an insurer culating the individual payment obligations nation of the Committee under section 215, participant, the Committee shall require of participants who are parties to the cer- the Chief Executive Officer shall have the such person to submit information necessary tified agreement. authority, upon application by any insurer to determine whether payments from that (d) COMMITTEE REPORT.— participant, to make adjustments to annual person should be required, in accordance (1) RECIPIENTS.—Until the work of the payments upon the same grounds as provided with the requirements of this subsection. Committee has been completed and the Com- in subsection (a)(3)(D). Adjustments granted (C) REVISION PROCEDURES.—The Committee mittee terminated, the Committee shall sub- under this subsection shall have a term not shall adopt procedures for revising initial mit an annual report, containing the infor- to exceed 3 years. An insurer participant payments based on information received mation described under paragraph (2), to— may renew its adjustment by demonstrating under subparagraphs (A) and (B), including a (A) the Committee on the Judiciary of the that it remains justified. Upon the grant of provision requiring an offset credit for an in- Senate; any adjustment, the Chief Executive Officer

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00085 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1220 CONGRESSIONAL RECORD — SENATE February 14, 2006 shall increase the payments, consistent with mittee considers necessary to carry out this Subtitle C—Asbestos Injury Claims subsection (a)(1)(B), required of all other in- Act. Upon request of the Chairman of the Resolution Fund surer participants so that there is no reduc- Committee, the head of such department or SEC. 221. ESTABLISHMENT OF ASBESTOS INJURY tion in the aggregate payment required of all agency shall furnish such information to the CLAIMS RESOLUTION FUND. insurer participants for the applicable years. Committee. (a) ESTABLISHMENT.—There is established The increase in an insurer participant’s re- (d) POSTAL SERVICES.—The Committee may in the Office of Asbestos Disease Compensa- quired payment shall be in proportion to use the United States mails in the same tion the Asbestos Injury Claims Resolution such participant’s share of the aggregate manner and under the same conditions as Fund, which shall be available to pay— payment obligation of all insurer partici- other departments and agencies of the Fed- (1) claims for awards for an eligible disease pants. eral Government. or condition determined under title I; (3) CREDITS FOR SHORTFALL ASSESSMENTS.— (e) GIFTS.—The Committee may not ac- (2) claims for reimbursement for medical If insurer participants are required during cept, use, or dispose of gifts or donations of monitoring determined under title I; the first 5 years of the life of the Fund to services or property. (3) principal and interest on borrowings make up any shortfall in required insurer (f) EXPERT ADVICE.—In carrying out its re- under subsection (b); payments under subsection (a)(1)(B), then, sponsibilities, the Committee may enter into (4) the remaining obligations to the asbes- beginning in year 6, the Chief Executive Offi- such contracts and agreements as the Com- tos trust of a debtor and the class action cer shall grant each insurer participant a mittee determines necessary to obtain ex- trust under section 405(f)(8); and credit against its annual required payments pert advice and analysis. (5) administrative expenses to carry out during the applicable years that in the ag- the provisions of this Act. SEC. 214. PERSONNEL MATTERS. gregate equal the amount of shortfall assess- (b) BORROWING AUTHORITY.— (a) COMPENSATION OF MEMBERS.—Each ments paid by such insurer participant dur- (1) IN GENERAL.—The Chief Executive Offi- ing the first 5 years of the life of the Fund. member of the Committee shall be com- cer is authorized to borrow from time to The credit shall be prorated over the same pensated at a rate equal to the daily equiva- time amounts as set forth in this subsection, number of years as the number of years dur- lent of the annual rate of basic pay pre- for purposes of enhancing liquidity available ing which the insurer participant paid a scribed for level IV of the Executive Sched- to the Fund for carrying out the obligations shortfall assessment. Insurer participants ule under section 5315 of title 5, United of the Fund under this Act. The Chief Execu- which did not pay all required payments to States Code, for each day (including travel tive Officer may authorize borrowing in such the Fund during the first 5 years of the life time) during which such member is engaged form, over such term, with such necessary of the Fund shall not be eligible for a credit. in the performance of the duties of the Com- disclosure to its lenders as will most effi- The Chief Executive Officer shall not grant a mittee. ciently enhance the Fund’s liquidity. credit for shortfall assessments imposed (b) TRAVEL EXPENSES.—The members of (2) FEDERAL FINANCING BANK.—In addition under section 405(e). the Committee shall be allowed travel ex- to the general authority in paragraph (1), the (4) FINANCIAL SECURITY REQUIREMENTS.— penses, including per diem in lieu of subsist- Chief Executive Officer may borrow from the Whenever an insurer participant’s A.M. ence, at rates authorized for employees of Federal Financing Bank in accordance with Best’s claims payment rating or Standard agencies under subchapter I of chapter 57 of section 6 of the Federal Financing Bank Act and Poor’s financial strength rating falls title 5, United States Code, while away from of 1973 (12 U.S.C. 2285), as needed for perform- below A¥, and until such time as either the their homes or regular places of business in ance of the Chief Executive Officer’s duties insurer participant’s A.M. Best’s Rating or the performance of services for the Com- under this Act for the first 5 years. Standard and Poor’s rating is equal to or mittee. (3) BORROWING CAPACITY.—The maximum greater than A¥, the Chief Executive Officer (c) STAFF.— amount that may be borrowed under this shall have the authority to require that the (1) IN GENERAL.—The Chairman of the Com- subsection at any given time is the amount participating insurer either— mittee may, without regard to the civil serv- that, taking into account all payment obli- (A) pay the present value of its remaining ice laws and regulations, appoint and termi- gations related to all previous amounts bor- Fund payments at a discount rate deter- nate an executive director and such other ad- rowed in accordance with this subsection and mined by the Chief Executive Officer; or ditional personnel as may be necessary to all committed obligations of the Fund at the (B) provide an evergreen letter of credit or enable the Committee to perform its duties. time of borrowing, can be repaid in full (with financial guarantee for future payments The employment of an executive director interest) in a timely fashion from— issued by an institution with an A.M. Best’s shall be subject to confirmation by the Com- (A) the available assets of the Fund as of claims payment rating or Standard & Poor’s mittee. the time of borrowing; and financial strength rating of at least A+. (2) COMPENSATION.—The Chairman of the (B) all amounts expected to be paid by par- (g) ACCOUNTING TREATMENT.—Insurer par- Committee may fix the compensation of the ticipants during the subsequent 10 years. ticipants’ payment obligations to the Fund executive director and other personnel with- (4) REPAYMENT OBLIGATIONS.—Repayment shall be subject to discounting under the ap- out regard to chapter 51 and subchapter III of of monies borrowed by the Chief Executive plicable accounting guidelines for generally chapter 53 of title 5, United States Code, re- Officer under this subsection shall be repaid accepted accounting purposes and statutory lating to classification of positions and Gen- in full by the Fund contributors and is lim- accounting purposes for each insurer partici- eral Schedule pay rates, except that the rate ited solely to amounts available, present or pant. This subsection shall in no way reduce of pay for the executive director and other future, in the Fund. the amount of monetary payments to the personnel may not exceed the rate payable (c) LOCKBOX FOR SEVERE ASBESTOS-RE- Fund by insurer participants as required for level V of the Executive Schedule under LATED INJURY CLAIMANTS.— under subsection (a). section 5316 of such title. (1) IN GENERAL.—Within the Fund, the (h) JUDICIAL REVIEW.—The Committee’s rule establishing an allocation methodology, (d) DETAIL OF GOVERNMENT EMPLOYEES.— Chief Executive Officer shall establish the its final determinations of payment obliga- Any Federal Government employee may be following accounts: tions and other final action shall be judi- detailed to the Committee without reim- (A) A Mesothelioma Account, which shall cially reviewable as provided in title III. bursement, and such detail shall be without be used solely to make payments to claim- interruption or loss of civil service status or ants eligible for an award under the criteria SEC. 213. POWERS OF ASBESTOS INSURERS COM- MITTEE. privilege. of Level IX. (a) RULEMAKING.—The Committee shall (e) PROCUREMENT OF TEMPORARY AND (B) A Lung Cancer Account, which shall be promulgate such rules and regulations as INTERMITTENT SERVICES.—The Chairman of used solely to make payments to claimants necessary to implement its authority under the Committee may procure temporary and eligible for an award under the criteria of this Act, including regulations governing an intermittent services under section 3109(b) of Level VIII. allocation methodology. Such rules and reg- title 5, United States Code, at rates for indi- (C) A Severe Asbestosis Account, which ulations shall be promulgated after pro- viduals which do not exceed the daily equiva- shall be used solely to make payments to viding interested parties with the oppor- lent of the annual rate of basic pay pre- claimants eligible for an award under the tunity for notice and comment. scribed for level V of the Executive Schedule criteria of Level V. (b) HEARINGS.—The Committee may hold under section 5316 of such title. (D) A Moderate Asbestosis Account, which shall be used solely to make payments to such hearings, sit and act at such times and SEC. 215. TERMINATION OF ASBESTOS INSURERS places, take such testimony, and receive COMMITTEE. claimants eligible for an award under the criteria of Level IV. such evidence as the Committee considers The Committee shall terminate 90 days (2) ALLOCATION.—The Chief Executive Offi- advisable to carry out this Act. The Com- after the last date on which the Committee cer shall allocate to each of the 4 accounts mittee shall also hold a hearing on any pro- makes a final determination of contribution established under paragraph (1) a portion of posed regulation establishing an allocation under section 212(b) or 90 days after the last payments made to the Fund adequate to methodology, before the Committee’s adop- appeal of any final action by the Committee compensate all anticipated claimants for tion of a final regulation. is exhausted, whichever occurs later. (c) INFORMATION FROM FEDERAL AND STATE each account. Within 60 days after the date AGENCIES.—The Committee may secure di- SEC. 216. EXPENSES AND COSTS OF COMMITTEE. of enactment of this Act, and periodically rectly from any Federal or State department All expenses of the Committee shall be during the life of the Fund, the Chief Execu- or agency such information as the Com- paid from the Fund. tive Officer shall determine an appropriate

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MANAGEMENT OF THE FUND. nization confirmed and substantially con- (d) AUDIT AUTHORITY.— (a) IN GENERAL.—Amounts in the Fund summated on or before July 31, 2004, that (1) IN GENERAL.—For the purpose of shall be held for the exclusive purpose of pro- was not made, or is no longer, available to ascertaining the correctness of any informa- viding benefits to asbestos claimants and the Fund; tion provided or payments made to the Fund, their beneficiaries and to otherwise defray (iii) the total aggregate amount of the nec- or determining whether a person who has not the reasonable expenses of administering the essary surcharge; and made a payment to the Fund was required to Fund. (iv) the surcharge amount for each tier and do so, or determining the liability of any (b) INVESTMENTS.— subtier of defendant participants and for person for a payment to the Fund, or col- (1) IN GENERAL.—Amounts in the Fund each insurer participant. lecting any such liability, or inquiring into shall be administered and invested with the (C) FINAL NOTICE.—The Chief Executive Of- any offense connected with the administra- care, skill, prudence, and diligence, under ficer shall publish in a newspaper with a cir- tion or enforcement of this title, the Chief the circumstances prevailing at the time of culation of at least 500,000 and on the Inter- Executive Officer is authorized— such investment, that a prudent person act- net a final notice and provide each partici- (A) to examine any books, papers, records, ing in a like capacity and manner would use. pant with written notice of that partici- or other data which may be relevant or ma- (2) STRATEGY.—The Chief Executive Officer pant’s schedule of payments under this sub- terial to such inquiry; shall invest amounts in the Fund in a man- section. In no event shall any required sur- (B) to summon the person liable for a pay- ner that enables the Fund to make current charge under this subsection be due before 60 ment under this title, or officer or employee and future distributions to or for the benefit days after the Chief Executive Officer pub- of such person, or any person having posses- of asbestos claimants. In pursuing an invest- lishes the final notice in a newspaper with a sion, custody, or care of books of account ment strategy under this subparagraph, the circulation of at least 500,000 and on the containing entries relating to the business of Chief Executive Officer shall consider, to the Internet and provides each participant with the person liable or any other person the extent relevant to an investment decision or written notice of its schedule of payments. Chief Executive Officer may determine prop- action— (4) MAXIMUM AMOUNT.—In no event shall er, to appear before the Chief Executive Offi- (A) the size of the Fund; the total aggregate surcharge imposed by cer at a time and place named in the sum- (B) the nature and estimated duration of the Chief Executive Officer exceed the lesser mons and to produce such books, papers, the Fund; of— records, or other data, and to give such testi- (C) the liquidity and distribution require- (A) the total aggregate amount of the de- ments of the Fund; mony, under oath, as may be relevant or ma- clared assets of the trusts established under (D) general economic conditions at the terial to such inquiry; and a plan of reorganization confirmed and sub- time of the investment; (C) to take such testimony of the person stantially consummated prior to July 31, (E) the possible effect of inflation or defla- concerned, under oath, as may be relevant or 2004, that are no longer available to the tion on Fund assets; material to such inquiry. Fund; or (F) the role that each investment or course (2) FALSE, FRAUDULENT, OR FICTITIOUS (B) $4,000,000,000. STATEMENTS OR PRACTICES.—If the Chief Ex- of action plays with respect to the overall (5) DECLARED ASSETS.— ecutive Officer determines that materially assets of the Fund; (A) IN GENERAL.—In this subsection, the (G) the expected amount to be earned (in- false, fraudulent, or fictitious statements or term ‘‘declared assets’’ means— practices have been submitted or engaged in cluding both income and appreciation of cap- ital) through investment of amounts in the (i) the amount of assets transferred by any by persons submitting information to the trust established under a plan of reorganiza- Chief Executive Officer or to the Asbestos In- Fund; and (H) the needs of asbestos claimants for cur- tion confirmed and substantially con- surers Committee or any other person who summated on or before July 31, 2004, to the provides evidence in support of such submis- rent and future distributions authorized under this Act. Fund that is required to be returned to that sions for purposes of determining payment trust under the final judgment described in obligations under this Act, the Chief Execu- (c) BANKRUPTCY TRUST GUARANTEE.— (1) IN GENERAL.—Notwithstanding any paragraph (1)(A); or tive Officer may impose a civil penalty not (ii) if no assets were transferred by the to exceed $10,000 on any person found to have other provision of this Act, the Chief Execu- tive Officer shall have the authority to im- trust to the Fund, the amount of assets the submitted or engaged in a materially false, Chief Executive Officer determines would fraudulent, or fictitious statement or prac- pose a pro rata surcharge on all participants under this subsection to ensure the liquidity have been available for transfer to the Fund tice under this Act. The Chief Executive Of- from that trust under section 402(f). ficer shall promulgate appropriate regula- of the Fund, if— (A) the declared assets from 1 or more (B) DETERMINATION.—In making a deter- tions to implement this paragraph. mination under subparagraph (A)(ii), the (e) IDENTITY OF CERTAIN DEFENDANT PAR- bankruptcy trusts established under a plan Chief Executive Officer may rely on any in- TICIPANTS; TRANSPARENCY.— of reorganization confirmed and substan- formation reasonably available, and may re- (1) SUBMISSION OF INFORMATION.—Not later tially consummated on or before July 31, quest, and use subpoena authority of the than 60 days after the date of enactment of 2004, are not available to the Fund because a Chief Executive Officer if necessary to ob- this Act, any person who, acting in good final judgment that has been entered by a tain, relevant information from any such faith, has knowledge that such person or court and is no longer subject to any appeal trust or its trustees. such person’s affiliated group has prior as- or review has enjoined the transfer of assets bestos expenditures of $1,000,000 or greater, required under section 524(j)(2) of title 11, (d) BANKRUPTCY TRUST CREDITS.— shall submit to the Chief Executive Officer— United States Code (as amended by section (1) IN GENERAL.—Notwithstanding any (A) either the name of such person, or such 402(f) of this Act); and other provision of this Act, but subject to person’s ultimate parent; and (B) borrowing is insufficient to assure the paragraph (2) of this subsection, the Chief (B) the likely tier to which such person or Fund’s ability to meet its obligations under Executive Officer shall provide a credit to- affiliated group may be assigned under this this Act such that the required borrowed ward the aggregate payment obligations Act. amount is likely to increase the risk of ter- under sections 202(a)(2) and 212(a)(2)(A) for (2) PUBLICATION.—Not later than 20 days mination of this Act under section 405 based assets received by the Fund from any bank- after the end of the 60-day period referred to on reasonable claims projections. ruptcy trust established under a plan of reor- in paragraph (1), the Chief Executive Officer (2) ALLOCATION.—Any surcharge imposed ganization confirmed and substantially con- shall publish in a newspaper with a circula- under this subsection shall be imposed over a summated after July 31, 2004. tion of at least 500,000 and on the Internet a period of 5 years on a pro rata basis upon all (2) ALLOCATION OF CREDITS.—The Chief Ex- list of submissions required by this sub- participants, in accordance with the relative ecutive Officer shall allocate, for each such section, including the name of such persons aggregate funding obligations under sections bankruptcy trust, the credits for such assets or ultimate parents and the likely tier to 202(a)(2) and 212(a)(2)(A). between the defendant and insurer aggregate which such persons or affiliated groups may (3) CERTIFICATION.— payment obligations as follows: be assigned. After publication of such list, (A) IN GENERAL.—Before imposing a sur- (A) DEFENDANT PARTICIPANTS.—The aggre- any person who, acting in good faith, has charge under this subsection, the Chief Exec- gate amount that all persons other than in- knowledge that any other person has prior utive Officer shall publish in a newspaper surers contributing to the bankruptcy trust asbestos expenditures of $1,000,000 or greater with a circulation of at least 500,000 and on would have been required to pay as Tier I de- may submit to the Chief Executive Officer the Internet a notice and provide in such no- fendants under section 203(b) if the plan of information on the identity of that person tice for a public comment period of 30 days. reorganization under which the bankruptcy and the person’s prior asbestos expenditures. (B) CONTENTS OF NOTICE.—The notice re- trust was established had not been confirmed (f) NO PRIVATE RIGHT OF ACTION.—Except quired under subparagraph (A) shall in- and substantially consummated and the pro- as provided in sections 203(b)(2)(D)(ii) and clude— ceeding under chapter 11 of title 11, United 204(f)(3), there shall be no private right of ac- (i) information explaining the cir- States Code, that resulted in the establish- tion under any Federal or State law against cumstances that make a surcharge necessary ment of the bankruptcy trust had remained any participant based on a claim of compli- and a certification that the requirements pending as of the date of enactment of this ance or noncompliance with this Act or the under paragraph (1) are met; Act.

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(B) INSURER PARTICIPANTS.—The aggregate (B) subrogation under this subsection shall section 204(i)(10), or in a judicial review pro- amount of all credits to which insurers are have no effect on the validity of the insur- ceeding under section 303. entitled to under section 202(c)(4)(A) of the ance policies or reinsurance, and any con- (h) DEPOSIT OF FUNDS.— Act. trary State law is expressly preempted. (1) IN GENERAL.—Any funds collected under SEC. 223. ENFORCEMENT OF PAYMENT OBLIGA- (3) RECOVERABILITY OF CONTRIBUTION.—For subsection (c)(2) (A) or (C) shall be— TIONS. purposes of this subsection— (A) deposited in the Fund; and (a) DEFAULT.—If any participant fails to (A) all contributions to the Fund required (B) used only to pay— make any payment in the amount of and ac- of a participant shall be deemed to be sums (i) claims for awards for an eligible disease cording to the schedule under this Act or as legally required to be paid for bodily injury or condition determined under title I; or prescribed by the Chief Executive Officer, resulting from exposure to asbestos; (ii) claims for reimbursement for medical after demand and a 30-day opportunity to (B) all contributions to the Fund required monitoring determined under title I. cure the default, there shall be a lien in of any participant shall be deemed to be a (2) NO EFFECT ON OTHER LIABILITIES.—The favor of the United States for the amount of single loss arising from a single occurrence imposition of a fine under subsection (c)(2)(C) shall have no effect on— the delinquent payment (including interest) under each contract to which the Chief Exec- (A) the assessment of contributions under upon all property and rights to property, utive Officer is subrogated; and subtitles A and B; or whether real or personal, belonging to such (C) with respect to reinsurance contracts, (B) any other provision of this Act. participant. all contributions to the Fund required of a (i) PROPERTY OF THE ESTATE.—Section (b) BANKRUPTCY.—In the case of a bank- participant shall be deemed to be payments to a single claimant for a single loss. 541(b) of title 11, United States Code, is ruptcy or insolvency proceeding, the lien im- amended— (4) NO CREDIT OR OFFSET.—In any action posed under subsection (a) shall be treated in (1) in paragraph (4)(B)(ii), by striking ‘‘or’’ brought under this subsection, the non- the same manner as a lien for taxes due and at the end; paying insurer or reinsurer shall be entitled owing to the United States for purposes of (2) in paragraph (5), by striking ‘‘prohibi- to no credit or offset for amounts collectible the provisions of title 11, United States Code, tion.’’ and inserting ‘‘prohibition; or’’; and or potentially collectible from any partici- or section 3713(a) of title 31, United States (3) by inserting after paragraph (5) and be- pant nor shall such defaulting participant Code. The United States Bankruptcy Court fore the last undesignated sentence the fol- have any right to collect any sums payable shall have jurisdiction over any issue or con- lowing: under this section from any participant. troversy regarding lien priority and lien per- ‘‘(6) the value of any pending claim against OOPERATION.—Insureds and cedents fection arising in a bankruptcy case due to a (5) C or the amount of an award granted from the lien imposed under subsection (a). shall cooperate with the Chief Executive Of- Asbestos Injury Claims Resolution Fund es- (c) CIVIL ACTION.— ficer’s reasonable requests for assistance in tablished under the Fairness in Asbestos In- (1) IN GENERAL.—In any case in which there any such proceeding. The positions taken or jury Resolution Act of 2006.’’. has been a refusal or failure to pay any li- statements made by the Chief Executive Of- (j) PROPOSED TRANSACTIONS.— ability imposed under this Act, the Chief Ex- ficer in any such proceeding shall not be (1) NOTICE OF PROPOSED TRANSACTION.—Any ecutive Officer may bring a civil action in binding on or attributed to the insureds or participant that has taken any action to ef- any appropriate United States District cedents in any other proceeding. The out- fectuate a proposed transaction or a pro- Court, or any other appropriate lawsuit or come of such a proceeding shall not have a posed series of transactions under which a proceeding outside of the United States— preclusive effect on the insureds or cedents significant portion of such participant’s as- (A) to enforce the liability and any lien of in any other proceeding and shall not be ad- sets, properties or business will, if con- the United States imposed under this sec- missible against any subrogee under this sec- summated as proposed, be, directly or indi- tion; tion. The Chief Executive Officer shall have rectly, transferred by any means (including, (B) to subject any property of the partici- the authority to settle or compromise any without limitation, by sale, dividend, con- pant, including any property in which the claims against a nonpaying insurer partici- tribution to a subsidiary or split-off) to 1 or participant has any right, title, or interest pant under this subsection. more persons other than the participant to the payment of such liability; or (e) BAR ON UNITED STATES BUSINESS.—If shall provide written notice to the Chief Ex- (C) for temporary, preliminary, or perma- any direct insurer or reinsurer refuses to pay ecutive Officer of such proposed transaction nent relief. any contribution required by this Act, then, (or proposed series of transactions). Upon the in addition to any other penalties imposed (2) ADDITIONAL PENALTIES.—In any action request of such participant, and for so long under paragraph (1) in which the refusal or by this Act, the Chief Executive Officer shall as the participant shall not publicly disclose failure to pay was willful, the Chief Execu- issue an order barring such entity and its af- the transaction or series of transactions and tive Officer may seek recovery— filiates from insuring risks located within the Chief Executive Officer shall not com- the United States or otherwise doing busi- (A) of punitive damages; mence any action under paragraph (6), the ness within the United States unless and (B) of the costs of any civil action under Chief Executive Officer shall treat any such until it complies. If any direct insurer or re- this subsection, including reasonable fees in- notice as confidential commercial informa- insurer refuses to furnish any information curred for collection, expert witnesses, and tion under section 552 of title 5, United requested by the Chief Executive Officer, the attorney’s fees; and States Code. Chief Executive Officer may issue an order (C) in addition to any other penalty, of a (2) TIMING OF NOTICE AND RELATED AC- barring such entity and its affiliates from in- fine equal to the total amount of the liabil- TIONS.— suring risks located within the United States ity that has not been collected. (A) IN GENERAL.—Any notice that a partici- or otherwise doing business within the (d) ENFORCEMENT AUTHORITY AS TO INSURER pant is required to give under paragraph (1) United States unless and until it complies. PARTICIPANTS.— shall be given not later than 30 days before Insurer participants or their affiliates seek- (1) IN GENERAL.—In addition to or in lieu of ing to obtain a license from any State to the date of consummation of the proposed the enforcement remedies described in sub- write any type of insurance shall be barred transaction or the first transaction to occur section (c), the Chief Executive Officer may from obtaining any such license until pay- in a proposed series of transactions. seek to recover amounts in satisfaction of a ment of all contributions required as of the (B) OTHER NOTIFICATIONS.— payment not timely paid by an insurer par- date of license application. (i) IN GENERAL.—Not later than the date in ticipant under the procedures under this sub- (f) CREDIT FOR REINSURANCE.—If the Chief any year by which a participant is required section. Executive Officer determines that an insurer to make its contribution to the Fund, the (2) SUBROGATION.—To the extent required participant that is a reinsurer is in default participant shall deliver to the Chief Execu- to establish personal jurisdiction over non- in paying any required contribution or oth- tive Officer a written certification stating paying insurer participants, the Chief Execu- erwise not in compliance with this Act, the that— tive Officer shall be deemed to be subrogated Chief Executive Officer may issue an order (I) the participant has complied during the to the contractual rights of participants to barring any direct insurer participant from period since the last such certification or the seek recovery from nonpaying insuring par- receiving credit for reinsurance purchased date of enactment of this Act with the notice ticipants that are domiciled outside the from the defaulting reinsurer after the date requirements set forth in this subsection; or United States under the policies of liability of the Chief Executive Officer’s determina- (II) the participant was not required to insurance or contracts of liability reinsur- tion of default. Any State law governing provide any notice under this subsection dur- ance or retrocessional reinsurance applicable credit for reinsurance to the contrary is pre- ing such period. to asbestos claims, and the Chief Executive empted. (ii) SUMMARY.—The Chief Executive Officer Officer may bring an action or an arbitration (g) DEFENSE LIMITATION.—In any pro- shall include in the annual report required to against the nonpaying insurer participants ceeding under this section, the participant be submitted to Congress under section 405 a under the provisions of such policies and shall be barred from bringing any challenge summary of all such notices (after removing contracts, provided that— to any determination of the Chief Executive all confidential identifying information) re- (A) any amounts collected under this sub- Officer or the Asbestos Insurers Committee ceived during the most recent fiscal year. section shall not increase the amount of regarding its liability under this Act, or to (C) NOTICE COMPLETION.—The Chief Execu- deemed erosion allocated to any policy or the constitutionality of this Act or any pro- tive Officer shall not consider any notice contract under section 404, or otherwise re- vision thereof, if such challenge could have given under paragraph (1) as given until such duce coverage available to a participant; and been made during the review provided under time as the Chief Executive Officer receives

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00088 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1223 substantially all the information required by such participant, where the status or poten- tos-related medical conditions to members of this subsection. tial status as a successor in interest has not populations at risk of developing such condi- (3) CONTENTS OF NOTICE.— been stated and acknowledged by the partici- tions. (A) IN GENERAL.—The Chief Executive Offi- pant and such person; or (2) INFORMATION.—The information pro- cer shall determine by rule or regulation the (ii) that may be subject to avoidance by a vided under paragraph (1) shall include infor- information to be included in the notice re- trustee under section 544(b) or 548 of title 11, mation about— quired under this subsection, which shall in- United States Code, as if, but whether or not, (A) the signs and symptoms of asbestos-re- clude such information as may be necessary the participant is a subject to a case under lated medical conditions; to enable the Chief Executive Officer to de- title 11, United States Code, (B) the value of appropriate medical termine whether— then the Chief Executive Officer or such par- screening programs; and (i) the person or persons to whom the as- ticipant may, as a deemed creditor under ap- (C) actions that the individuals can take to sets, properties or business are being trans- plicable law, bring a civil action in an appro- reduce their future health risks related to ferred in the proposed transaction (or pro- priate forum against the participant or any asbestos exposure. posed series of transactions) should be con- other person who is either a party to the (c) MEDICAL MONITORING PROGRAM AND sidered to be the successor in interest of the transaction (or series of transactions) or the PROTOCOLS.— participant for purposes of this Act, or recipient of any asset, property, or business (1) IN GENERAL.—The Chief Executive Offi- (ii) the proposed transaction (or proposed of the participant. cer shall establish procedures for a medical series of transactions) would, if con- (B) RELIEF ALLOWED.—In any action com- monitoring program for persons exposed to summated, be subject to avoidance by a menced under this subsection, the Chief Ex- asbestos who have been approved for level I trustee under section 544(b) or 548 of title 11, ecutive Officer or a participant, as applica- compensation under section 131. United States Code, as if, but whether or not, ble, may seek— (2) PROCEDURES.—The procedures for med- the participant is subject to a case under (i) with respect to a transaction (or series ical monitoring shall include— title 11, United States Code. of transactions) referenced in clause (i) of (A) specific medical tests to be provided to (B) STATEMENTS.—The notice shall also in- subparagraph (A), a declaratory judgment re- eligible individuals and the periodicity of clude— those tests, which shall initially be provided (i) a statement by the participant as to garding whether such person will or has be- come the successor in interest of such partic- every 3 years and include— whether it believes any person will or has be- (i) administration of a health evaluation come a successor in interest to the partici- ipant; or (ii) with respect to a transaction (or series and work history questionnaire; pant for purposes of this Act and, if so, the (ii) physical examinations, including blood identity of that person; and of transactions) referenced in clause (ii) of subparagraph (A)— pressure measurement, chest examination, (ii) a statement by the participant as to and examination for clubbing; whether that person has acknowledged that (I) a temporary restraining order or a pre- liminary or permanent injunction against (iii) AP and lateral chest x-ray; and it will or has become a successor in interest (iv) spirometry performed according to for purposes of this Act. such transaction (or series of transactions); or ATS standards; (4) DEFINITION.—In this subsection, the (B) qualifications of medical providers who term ‘‘significant portion of the assets, prop- (II) such other relief regarding such trans- action (or series of transactions) as the court are to provide the tests required under sub- erties or business of a participant’’ means as- paragraph (A); and sets (including, without limitation, tangible determines to be necessary to ensure that (C) administrative provisions for reim- or intangible assets, securities and cash), performance of a participant’s payment obli- bursement from the Fund of the costs of properties or business of such participant (or gations under this Act is not materially im- monitoring eligible claimants, including the its affiliated group, to the extent that the paired by reason of such transaction (or se- costs associated with the visits of the claim- participant has elected to be part of an affili- ries of transactions). ants to physicians in connection with med- ated group under section 204(f)) that, to- (C) APPLICABILITY.—If the Chief Executive ical monitoring, and with the costs of per- gether with any other asset, property or Officer or a participant wishes to challenge a forming and analyzing the tests. business transferred by such participant in statement made by a participant that a per- (3) PREFERENCES.— any of the previous completed 5 fiscal years son will not or has not become a successor in (A) IN GENERAL.—In administering the of such participant (or, as appropriate, its af- interest for purposes of this Act, then this monitoring program under this subsection, filiated group), and as determined in accord- paragraph shall be the exclusive means by ance with United States generally accepted which the determination of whether such preference shall be given to medical and pro- accounting principles as in effect from time person will or has become a successor in in- gram providers with— to time— terest of the participant shall be made. This (i) a demonstrated capacity for identifying, (A) generated at least 40 percent of the rev- paragraph shall not preempt any other contacting, and evaluating populations of enues of such participant (or its affiliated rights of any person under applicable Federal workers or others previously exposed to as- group); or State law. bestos; and (B) constituted at least 40 percent of the (D) VENUE.—Any action under this para- (ii) experience in establishing networks of assets of such participant (or its affiliated graph shall be brought in any appropriate medical providers to conduct medical screen- group); United States district court or, to the extent ing and medical monitoring examinations. (C) generated at least 40 percent of the op- necessary to obtain complete relief, any (B) PROVISION OF LISTS.—Claimants that erating cash flows of such participant (or its other appropriate forum outside of the are eligible to participate in the medical affiliated group); or United States. monitoring program shall be provided with a (D) generated at least 40 percent of the net (7) RULES AND REGULATIONS.—The Chief Ex- list of approved providers in their geographic income or loss of such participant (or its af- ecutive Officer may promulgate regulations area at the time such claimants become eli- filiated group), to effectuate the intent of this subsection, gible to receive medical monitoring. as measured during any of such 5 previous including regulations relating to the form, (d) CONTRACTS.—The Chief Executive Offi- fiscal years. timing, and content of notices. cer may enter into contracts with qualified program providers that would permit the (5) CONSUMMATION OF TRANSACTION.—Any SEC. 224. INTEREST ON UNDERPAYMENT OR NON- proposed transaction (or proposed series of PAYMENT. program providers to undertake medical transactions) with respect to which a partic- If any amount of payment obligation under monitoring programs by means of sub- ipant is required to provide notice under this title is not paid on or before the last contracts with a network of medical pro- paragraph (1) may not be consummated until date prescribed for payment, the liable party viders, or other health providers. at least 30 days after delivery to the Chief shall pay interest on such amount at the (e) REVIEW.—Not later than 5 years after Executive Officer of such notice, unless the Federal short-term rate determined under the date of enactment of this Act, and every Chief Executive Officer shall earlier termi- section 6621(b) of the Internal Revenue Code 5 years thereafter, the Chief Executive Offi- nate the notice period. The Chief Executive of 1986, plus 5 percentage points, for the pe- cer shall review, and if necessary update, the Officer shall endeavor whenever possible to riod from such last date to the date paid. protocols and procedures established under this section. terminate a notice period at the earliest SEC. 225. EDUCATION, CONSULTATION, AND MON- practicable time. ITORING. SEC. 226. OVERSIGHT BY THE SECRETARY OF (6) RIGHT OF ACTION.— (a) IN GENERAL.—The Chief Executive Offi- THE TREASURY. (A) IN GENERAL.—Notwithstanding section cer shall establish a program for the edu- The Secretary of the Treasury shall have 221(f), if the Chief Executive Officer or any cation, consultation, and medical moni- authority to serve as the Federal Govern- participant believes that a participant pro- toring of persons with exposure to asbestos. ment’s safety and soundness regulator for poses to engage or has engaged, directly or The program shall be funded by the Fund. the Corporation, and may promulgate such indirectly, in, or is the subject of, a trans- (b) OUTREACH AND EDUCATION.— regulations and exercise such authority as action (or series of transactions)— (1) IN GENERAL.—Not later than 1 year after necessary to ensure the fiscal safety and (i) involving a person or persons who, as a the date of enactment of this Act, the Chief soundness of the Corporation. result of such transaction (or series of trans- Executive Officer shall establish an outreach SEC. 227. ADMINISTRATIVE FUNDING. actions), may have or may become the suc- and education program, including a website The Corporation and Asbestos Insurers cessor in interest or successors in interest of designed to provide information about asbes- Committee shall each establish a budget for

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00089 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1224 CONGRESSIONAL RECORD — SENATE February 14, 2006 each fiscal year, which shall be reviewed and ing such notice. The court shall give such ac- unnecessary delay or needless increase in the approved according to their respective inter- tion expedited consideration. cost of litigation; nal procedures not less than 6 months before SEC. 304. OTHER JUDICIAL CHALLENGES. (2) the claims, defenses, and other legal the commencement of the fiscal year to (a) EXCLUSIVE JURISDICTION.—The United contentions therein are warranted by exist- which the budget pertains. The budgets shall States District Court for the District of Co- ing law or by a nonfrivolous argument for be subject to approval by the Secretary of lumbia shall have exclusive jurisdiction over the extension, modification, or reversal of the Treasury. any action for declaratory or injunctive re- existing law or the establishment of new law; TITLE III—JUDICIAL REVIEW lief challenging any provision of this Act. An (3) the allegations and other factual con- tentions have evidentiary support; and SEC. 301. JUDICIAL REVIEW OF PROCEDURES. action under this section shall be filed not (4) the denials of factual contentions are (a) EXCLUSIVE JURISDICTION.—The United later than 60 days after the date of enact- warranted on the evidence. States Court of Appeals for the Federal Cir- ment of this Act or 60 days after the final ac- (b) SANCTIONS.— cuit shall have exclusive jurisdiction over tion by the Chief Executive Officer or the As- (1) IN GENERAL.—If, after notice and a rea- any action to review written procedures bestos Insurers Committee giving rise to the action, whichever is later. sonable opportunity to respond, the review- issued by the Chief Executive Officer or by ing judicial body determines that subsection the Asbestos Insurers Committee or under (b) DIRECT APPEAL.—A final decision in the action shall be reviewable on appeal directly (a) has been violated, the reviewing judicial this Act. body may, subject to the provisions of this (b) REVIEW.—Any party adversely affected to the Supreme Court of the United States. subsection, impose an appropriate sanction or aggrieved by any provision of the written Such appeal shall be taken by the filing of a upon the requesting participant, or parties procedures issued by the Chief Executive Of- notice of appeal within 30 days, and the fil- that have violated subsection (a) or are re- ficer or by the Asbestos Insurers Committee ing of a jurisdictional statement within 60 sponsible for the violation. or under this Act shall file a petition for re- days, of the entry of the final decision. (2) SHOW CAUSE ORDER.—The reviewing ju- view not later than 60 days after the date of (c) EXPEDITED PROCEDURES.—It shall be the dicial body may enter an order describing issuance of such procedures. duty of the United States District Court for the specific conduct that appears to violate (c) STANDARD OF REVIEW.—The court shall the District of Columbia and the Supreme subsection (a) and directing a party to show uphold the provision of the written proce- Court of the United States to advance on the cause why it has not violated subsection (a) dures being challenged unless the court de- docket and to expedite to the greatest pos- with respect thereto. termines that issuance of such procedure is sible extent the disposition of the action and (3) SANCTIONS.— arbitrary and capricious or contrary to law. appeal. (A) IN GENERAL.—A sanction imposed for (d) EXPEDITED TREATMENT.—The United SEC. 305. STAYS, EXCLUSIVITY, AND CONSTITU- States Court of Appeals for the Federal Cir- TIONAL REVIEW. violation of this rule shall be limited to what cuit shall provide expedited treatment for (a) NO STAYS.—No court may issue a stay is sufficient to deter repetition of such con- actions filed under this section. of payment by any party into the Fund pend- duct or comparable conduct by others simi- ing its final judgment. larly situated. Subject to subparagraph (B), SEC. 302. JUDICIAL REVIEW OF AWARD DECI- the sanction may consist of, or include, di- SIONS. (b) EXCLUSIVITY OF REVIEW.—An action of rectives of a nonmonetary nature, an order (a) IN GENERAL.—Any claimant adversely the Chief Executive Officer or the Asbestos to pay a penalty of up to $500,000, or, if im- affected or aggrieved by a final decision of Insurers Committee for which review could posed on motion and warranted for effective the Chief Executive Officer awarding or de- have been obtained under section 301, 302, or deterrence, an order directing payment to nying compensation under title I may peti- 303 shall not be subject to judicial review in the movant of some or all of the reasonable tion for judicial review of such decision. Any any other proceeding. expenses incurred as a direct result of the petition for review under this section shall (c) CONSTITUTIONAL REVIEW.— violation. be filed within 90 days of the issuance of a (1) IN GENERAL.—The United States Dis- (B) MONETARY SANCTIONS.—Monetary sanc- final decision of the Chief Executive Officer. trict Court for the District of Columbia shall tions may not be awarded unless the review- (b) EXCLUSIVE JURISDICTION.—A petition have exclusive jurisdiction over any action for review may only be filed in the United challenging the constitutionality of any pro- ing judicial body issues its order to show States Court of Appeals for the Federal Cir- vision or application of this Act. The fol- cause before a voluntary dismissal or settle- cuit. lowing rules shall apply: ment of the claims made by or against the party which is to be sanctioned. (c) STANDARD OF REVIEW.—The court shall (A) The action shall be filed in the United uphold the decision of the Chief Executive States District Court for the District of Co- (4) ORDER.—When imposing sanctions, the Officer unless the court determines, upon re- lumbia and shall be heard by a 3-judge court reviewing judicial body shall describe the view of the record as a whole, that the deci- convened under section 2284 of title 28, conduct determined to constitute a violation sion is not supported by substantial evi- United States Code. of this rule and explain the basis for the dence, is contrary to law, or is not in accord- (B) A final decision in the action shall be sanction imposed. ance with procedure required by law. reviewable only by appeal directly to the Su- TITLE IV—MISCELLANEOUS PROVISIONS (d) EXPEDITED PROCEDURES.—The United preme Court of the United States. Such ap- SEC. 401. FALSE INFORMATION. States Court of Appeals shall provide for ex- peal shall be taken by the filing of a notice (a) CRIMINAL LIABILITY.— pedited procedures for reviews under this of appeal within 10 days, and the filing of a (1) IN GENERAL.—Chapter 63 of title 18, section. jurisdictional statement within 30 days, United States Code, is amended by adding at SEC. 303. JUDICIAL REVIEW OF PARTICIPANTS’ after the entry of the final decision. the end the following: ASSESSMENTS. (C) It shall be the duty of the United ‘‘§ 1351. Fraud and false statements in con- (a) EXCLUSIVE JURISDICTION.—The United States District Court for the District of Co- nection with participation in Asbestos In- States Court of Appeals for the Federal Cir- lumbia and the Supreme Court of the United jury Claims Resolution Fund States to advance on the docket and to expe- cuit shall have exclusive jurisdiction over ‘‘(a) FRAUD RELATING TO ASBESTOS INJURY dite to the greatest possible extent the dis- any action to review a final determination CLAIMS RESOLUTION FUND.—Whoever know- by the Chief Executive Officer or the Asbes- position of the action and appeal. ingly and willfully executes, or attempts to tos Insurers Committee regarding the liabil- (2) REPAYMENT TO ASBESTOS TRUST AND execute, a scheme or artifice to defraud the ity of any person to make a payment to the CLASS ACTION TRUST.—If the transfer of the Office of Asbestos Disease Compensation or Fund, including a notice of applicable assets of any asbestos trust of a debtor or the Asbestos Insurers Committee under title subtier assignment under section 204(i), a no- any class action trust (or this Act as a II of the Fairness in Asbestos Injury Resolu- tice of financial hardship or inequity deter- whole) is held to be unconstitutional or oth- tion Act of 2006 shall be fined under this title mination under section 204(d), and a notice erwise unlawful, the Fund shall transfer the or imprisoned not more than 20 years, or of insurer participant obligation under sec- remaining balance of such assets (deter- both. tion 212(b). mined under section 405(f)(1)(A)(iii)) back to ‘‘(b) FALSE STATEMENT RELATING TO ASBES- (b) PERIOD FOR FILING ACTION.—A petition the appropriate asbestos trust or class action TOS INJURY CLAIMS RESOLUTION FUND.— for review under subsection (a) shall be filed trust within 90 days after final judicial ac- ‘‘(1) IN GENERAL.—It shall be unlawful for not later than 60 days after a final deter- tion on the legal challenge, including the ex- any person, in any matter involving the Of- mination by the Chief Executive Officer or haustion of all appeals. fice of Asbestos Disease Compensation or the the Asbestos Insurers Committee giving rise SEC. 306. REPRESENTATIONS TO COURT. Asbestos Insurers Committee, to knowingly to the action. Any defendant participant who (a) REPRESENTATIONS TO THE REVIEWING JU- and willfully— receives a notice of its applicable subtier DICIAL BODY.—By presenting a request for ju- ‘‘(A) falsify, conceal, or cover up by any under section 204(i) or a notice of financial dicial review under this title, a participant trick, scheme, or device a material fact; hardship or inequity determination under in the Fund, or a person acting on behalf of ‘‘(B) make any materially false, fictitious, section 204(d) shall commence any action a participant in the Fund, certifies that to or fraudulent statement or representation; within 30 days after a decision on rehearing the best of the person’s knowledge, informa- or under section 204(i)(10), and any insurer par- tion, and belief, formed after an inquiry rea- ‘‘(C) make or use any false writing or docu- ticipant who receives a notice of a payment sonable under the circumstances— ment knowing the same to contain any ma- obligation under section 212(b) shall com- (1) it is not being presented for any im- terially false, fictitious, or fraudulent state- mence any action within 30 days after receiv- proper purpose, such as to harass or to cause ment or entry, in connection with the award

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00090 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1225 of a claim or the determination of a partici- Asbestos Injury Resolution Act of 2006) of ity for the Fund in excess of the value of the pant’s payment obligation under title I or II the debtor’s payment obligations assessed asset. of the Fairness in Asbestos Injury Resolu- against the participant under title II of that ‘‘(C) ALLOCATION OF TRUST ASSETS.—If a tion Act of 2006. Act.’’. trust under subparagraph (A) has bene- ‘‘(2) PENALTY.—A person who violates this (e) PAYMENT.—Section 524 of title 11, ficiaries with claims that are not asbestos subsection shall be fined under this title or United States Code, is amended by adding at claims, the assets transferred to the Fund imprisoned not more than 10 years, or the end the following: under subparagraph (A) shall not include as- both.’’. ‘‘(i) PARTICIPANT DEBTORS.— sets allocable to such beneficiaries. The ‘‘(1) IN GENERAL.—Paragraphs (2) and (3) (2) TECHNICAL AND CONFORMING AMEND- trustees of any such trust shall determine shall apply to a debtor who— MENT.—The table of sections for chapter 63 of the amount of such trust assets to be re- ‘‘(A) is a participant that has made prior title 18, United States Code, is amended by served for the continuing operation of the asbestos expenditures (as such terms are de- adding at the end the following: trust in processing and paying claims that fined in the Fairness in Asbestos Injury Res- are not asbestos claims. The trustees shall ‘‘1348. Fraud and false statements in con- olution Act of 2006); and nection with participation in ‘‘(B) is subject to a case under this title demonstrate to the satisfaction of the Chief Asbestos Injury Claims Resolu- that is pending— Executive Officer, or by clear and convincing tion Fund.’’. ‘‘(i) on the date of enactment of the Fair- evidence in a proceeding brought before the (b) FURTHER LIABILITY.— ness in Asbestos Injury Resolution Act of United States District Court for the District (1) DEFINITION.—In this section, the term 2006; or of Columbia in accordance with paragraph ‘‘knowingly’’ means that a person, with re- ‘‘(ii) at any time during the 1-year period (4), that the amount reserved is properly al- spect to information— preceding the date of enactment of that Act. locable to claims other than asbestos claims. (A) has actual knowledge of the informa- ‘‘(2) TIER I DEBTORS.—A debtor that has ‘‘(D) SALE OF FUND ASSETS.—The invest- tion; been assigned to Tier I under section 202 of ment requirements under section 222 of the (B) acts in deliberate ignorance of the the Fairness in Asbestos Injury Resolution Fairness in Asbestos Injury Resolution Act truth or falsity of the information; or Act of 2006, shall make payments in accord- of 2006 shall not be construed to require the (C) acts in reckless disregard of the truth ance with sections 202 and 203 of that Act. Chief Executive Officer of the Fund to sell or falsity of the information. ‘‘(3) TREATMENT OF PAYMENT OBLIGA- assets transferred to the Fund under sub- (2) LIABILITY.—Any defendant participant TIONS.—All payment obligations of a debtor paragraph (A). or insurer participant that knowingly under sections 202 and 203 of the Fairness in ‘‘(E) LIQUIDATED CLAIMS.—Except as spe- makes, uses, or causes to be made or used a Asbestos Injury Resolution Act of 2006 cifically provided in this subparagraph, all false record or statement to conceal, avoid, shall— asbestos claims against a trust are super- or decrease an obligation to pay or transmit ‘‘(A) constitute costs and expenses of ad- seded and preempted as of the date of enact- money or property to the Corporation shall ministration of a case under section 503 of ment of the Fairness in Asbestos Injury Res- be liable under the standards of section 3729 this title; olution Act of 2006, and a trust shall not of title 31, United States Code. ‘‘(B) notwithstanding any case pending make any payment relating to asbestos SEC. 402. EFFECT ON BANKRUPTCY LAWS. under this title, be payable in accordance claims after that date. If, in the ordinary (a) NO AUTOMATIC STAY.—Section 362(b) of with section 202 of that Act; course and the normal and usual administra- title 11, United States Code, is amended— ‘‘(C) not be stayed; tion of the trust consistent with past prac- (1) in paragraph (17), by striking ‘‘or’’ at ‘‘(D) not be affected as to enforcement or tices, a trust had before the date of enact- the end; collection by any stay or injunction of any ment of the Fairness in Asbestos Injury Res- (2) in paragraph (18), by striking the period court; and olution Act of 2006, made all determinations at the end and inserting ‘‘; or’’; and ‘‘(E) not be impaired or discharged in any necessary to entitle an individual claimant (3) by inserting after paragraph (18) the fol- current or future case under this title.’’. to a noncontingent cash payment from the lowing: (f) TREATMENT OF TRUSTS.—Section 524 of trust, the trust shall (i) make any lump-sum ‘‘(19) under subsection (a) of this section of title 11, United States Code, as amended by cash payment due to that claimant, and (ii) the enforcement of any payment obligations this Act, is amended by adding at the end make or provide for all remaining non- under section 204 of the Fairness in Asbestos the following: contingent payments on any award being Injury Resolution Act of 2006, against a debt- ‘‘(j) ASBESTOS TRUSTS.— paid or scheduled to be paid on an install- or, or the property of the estate of a debtor, ‘‘(1) IN GENERAL.—A trust shall assign a ment basis, in each case only to the same ex- that is a participant (as that term is defined portion of the corpus of the trust to the As- tent that the trust would have made such in section 3 of that Act).’’. bestos Injury Claims Resolution Fund (re- cash payments in the ordinary course and (b) ASSUMPTION OF EXECUTORY CONTRACT.— ferred to in this subsection as the ‘Fund’) as consistent with past practices before enact- Section 365 of title 11, United States Code, is established under the Fairness in Asbestos ment of that Act. A trust shall not make any amended by adding at the end the following: Injury Resolution Act of 2006— payment in respect of any alleged contingent ‘‘(p) If a debtor is a participant (as that ‘‘(A) the trust qualifies as a trust under right to recover any greater amount than term is defined in section 3 of the Fairness in section 201 of that Act; and the trust had already paid, or had completed Asbestos Injury Resolution Act of 2006), the ‘‘(B) the trust does not file an election all determinations necessary to pay, to a trustee shall be deemed to have assumed all under section 410 of that Act. claimant in cash in accordance with its ordi- executory contracts entered into by the par- ‘‘(2) TRANSFER OF TRUST ASSETS.— nary distribution procedures in effect as of ticipant under section 204 of that Act. The ‘‘(A) IN GENERAL.— June 1, 2003. trustee may not reject any such executory ‘‘(i) Except as provided under subpara- ‘‘(3) INJUNCTION.— contract.’’. graphs (B), (C), and (E), the assets in any ‘‘(A) IN GENERAL.—Any injunction issued as (c) ALLOWED ADMINISTRATIVE EXPENSES.— trust established to provide compensation part of the formation of a trust described in Section 503 of title 11, United States Code, is for asbestos claims (as defined in section 3 of paragraph (1) shall remain in full force and amended by adding at the end the following: the Fairness in Asbestos Injury Resolution effect. No court, Federal or State, may en- ‘‘(c)(1) Claims or expenses of the United Act of 2006) shall be transferred to the Fund join the transfer of assets by a trust to the States, the Attorney General, or the Chief not later than 90 days after the date of en- Fund in accordance with this subsection Executive Officer (as that term is defined in actment of the Fairness in Asbestos Injury pending resolution of any litigation chal- section 3 of the Fairness in Asbestos Injury Resolution Act of 2006 or 30 days following lenging such transfer or the validity of this Resolution Act of 2006) based upon the asbes- funding of a trust established under a reorga- subsection or of any provision of the Fair- tos payment obligations of a debtor that is a nization plan subject to section 202(c) of that ness in Asbestos Injury Resolution Act of Participant (as that term is defined in sec- Act. Except as provided under subparagraph 2006, and an interlocutory order denying such tion 3 of that Act), shall be paid as an al- (B), the Chief Executive Officer of the Fund relief shall not be subject to immediate ap- lowed administrative expense. The debtor shall accept such assets and utilize them for peal under section 1291(a) of title 28. shall not be entitled to either notice or a any purposes of the Fund under section 221 of ‘‘(B) AVAILABILITY OF FUND ASSETS.—Not- hearing with respect to such claims. such Act, including the payment of claims withstanding any other provision of law, ‘‘(2) For purposes of paragraph (1), the for awards under such Act to beneficiaries of once such a transfer has been made, the as- term ‘asbestos payment obligation’ means the trust from which the assets were trans- sets of the Fund shall be available to satisfy any payment obligation under title II of the ferred. any final judgment entered in such an action Fairness in Asbestos Injury Resolution Act ‘‘(ii) Notwithstanding any other provision and such transfer shall no longer be subject of 2006.’’. of Federal or State law, no liability of any to any appeal or review— (d) NO DISCHARGE.—Section 523 of title 11, kind may be imposed on a trustee of a trust ‘‘(i) declaring that the transfer effected a United States Code, is amended by adding at for transferring assets to the Fund in accord- taking of a right or property for which an in- the end the following: ance with clause (i). dividual is constitutionally entitled to just ‘‘(f) A discharge under section 727, 1141, ‘‘(B) AUTHORITY TO REFUSE ASSETS.—The compensation; or 1228, or 1328 of this title does not discharge Chief Executive Officer of the Fund may ‘‘(ii) requiring the transfer back to a trust any debtor that is a participant (as that refuse to accept any asset that the Chief Ex- of any or all assets transferred by that trust term is defined in section 3 of the Fairness in ecutive Officer determines may create liabil- to the Fund.

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‘‘(4) JURISDICTION.—Solely for purposes of insurer or reinsurer participant under this (D) copies of all medical and laboratory re- implementing this subsection, personal ju- Act shall not be subject to the avoidance ports pertaining to the exposed person that risdiction over every covered trust, the powers of a receiver or a court in or relating refer to asbestos or asbestos exposure. trustees thereof, and any other necessary to an insurance receivership proceeding. (c) SUPERSEDING PROVISIONS.— party, and exclusive subject matter jurisdic- (j) STANDING IN BANKRUPTCY PRO- (1) IN GENERAL.—Except as provided under tion over every question arising out of or re- CEEDINGS.—The Chief Executive Officer shall paragraph (3), any agreement, under- lated to this subsection, shall be vested in have standing in any bankruptcy case in- standing, or undertaking by any person or the United States District Court for the Dis- volving a debtor participant. No bankruptcy affiliated group with respect to the treat- trict of Columbia. Notwithstanding any court may require the Chief Executive Offi- ment of any asbestos claim that requires fu- other provision of law, including section 1127 cer to return property seized to satisfy obli- ture performance by any party, insurer of of this title, that court may make any order gations to the Fund. such party, settlement Chief Executive Offi- necessary and appropriate to facilitate cer, or escrow agent shall be superseded in prompt compliance with this subsection, in- SEC. 403. EFFECT ON OTHER LAWS AND EXISTING its entirety by this Act. CLAIMS. cluding assuming jurisdiction over and modi- (2) NO FORCE OR EFFECT.—Except as pro- fying, to the extent necessary, any applica- (a) EFFECT ON FEDERAL AND STATE LAW.— vided under paragraph (3), any such agree- ble confirmation order or other order with The provisions of this Act shall supersede ment, understanding, or undertaking by any continuing and prospective application to a any Federal or State law insofar as such law such person or affiliated group shall be of no covered trust. The court may also resolve may relate to any asbestos claim, including force or effect, and no person shall have any any related challenge to the constitu- any claim described under subsection (e)(2). rights or claims with respect to any such tionality of this subsection or of its applica- (b) EFFECT ON NON-ASBESTOS CLAIMS.— agreement, understanding, or undertaking. tion to any trust, trustee, or individual (1) IN GENERAL.— (3) EXCEPTION.— claimant. The Chief Executive Officer of the (A) RULE OF CONSTRUCTION.—Nothing in (A) IN GENERAL.—Except as provided in sec- Fund may bring an action seeking such an this Act shall be construed to preempt, bar, tion 202(f), nothing in this Act shall abrogate order or modification, under the standards of or otherwise preclude any personal injury a binding and legally enforceable written rule 60(b) of the Federal Rules of Civil Proce- claim attributable to exposure to airborne settlement agreement between any defend- dure or otherwise, and shall be entitled to in- minerals, dusts, or fibers other than asbestos ant participant or its insurer and a specific tervene as of right in any action brought by as to which the plaintiff— named plaintiff with respect to the settle- any other party seeking interpretation, ap- (i) pleads with particularity and estab- ment of an asbestos claim of the plaintiff if— plication, or invalidation of this subsection. lishes by a preponderance of evidence either (i) before the date of enactment of this Any order denying relief that would facili- that— Act, the settlement agreement was executed tate prompt compliance with the transfer (I) no claim has been asserted or filed by or directly by the settling defendant or the set- provisions of this subsection shall be subject with respect to the exposed person in any tling insurer and the individual plaintiff, or to immediate appeal under section 304 of the forum for any asbestos-related condition and on behalf of the plaintiff where the plaintiff Fairness in Asbestos Injury Resolution Act the exposed person (or another claiming on is incapacitated and the settlement agree- of 2006. Notwithstanding any other provision behalf of or through the exposed person) is ment is signed by an authorized legal rep- of this paragraph, for purposes of imple- not eligible for any award under this Act; or resentative; menting the sunset provisions of section (II)(aa) the exposed person suffers or has (ii) the settlement agreement contains an 402(f) of such Act which apply to asbestos suffered a functional impairment that was express obligation by the settling defendant trusts and the class action trust, the bank- caused by exposure to 1 or more airborne or settling insurer to make a future direct ruptcy court or United States district court minerals, dusts, or fibers other than asbes- monetary payment or payments in a fixed having jurisdiction over any such trust as of tos; amount or amounts to the individual plain- the date of enactment of such Act shall re- (bb) asbestos exposure was not a signifi- tiff; and tain such jurisdiction.’’. cant contributing factor to such functional (iii) within 30 days after the date of enact- (g) NO AVOIDANCE OF TRANSFER.—Section impairment; and ment of this Act, or such shorter time period 546 of title 11, United States Code, is amend- (cc) the functional impairment is materi- specified in the settlement agreement, all ed by adding at the end the following: ally different than that for which the ex- conditions to payment under the settlement ‘‘(h) Notwithstanding the rights and pow- posed person (or another claiming on behalf agreement have been fulfilled, including any ers of a trustee under sections 544, 545, 547, of or through the exposed person) has ob- required court approval of the settlement, so 548, 549, and 550 of this title, if a debtor is a that the only remaining performance due participant (as that term is defined in sec- tained or is eligible to obtain an award under under the settlement agreement is the pay- tion 3 of the Fairness in Asbestos Injury Res- this Act; and ment or payments by the settling defendant olution Act of 2006), the trustee may not (ii) satisfies the requirements of paragraph or the settling insurer. avoid a transfer made by the debtor under its (2). (B) BANKRUPTCY-RELATED AGREEMENTS.— payment obligations under section 202 or 203 (B) PREEMPTION.—Claims attributable to The exception set forth in this paragraph of that Act.’’. exposure to airborne minerals, dusts, or fi- (h) CONFIRMATION OF PLAN.—Section 1129(a) bers other than asbestos that fail to meet shall not apply to any bankruptcy-related of title 11, United States Code, is amended by the requirements of subparagraph (a) shall agreement. adding at the end the following: be preempted by this Act. (C) COLLATERAL SOURCE.—Any settlement ‘‘(14) If the debtor is a participant (as that (2) REQUIRED EVIDENCE.—In any claim to payment under this section is a collateral term is defined in section 3 of the Fairness in which paragraph (1) applies, the initial source if the plaintiff seeks recovery from Asbestos Injury Resolution Act of 2006), the pleading (or, for claims pending on the date the Fund. plan provides for the continuation after its of enactment of this Act, an amended plead- (D) ABROGATION.—Nothing in subparagraph effective date of payment of all payment ob- ing to be filed within 30 days after such (A) shall abrogate a settlement agreement ligations under title II of that Act.’’. date), shall plead with particularity the ele- otherwise satisfying the requirements of (i) EFFECT ON INSURANCE RECEIVERSHIP ments of subparagraph (A)(i) (I) or (II) of that subparagraph if such settlement agree- PROCEEDINGS.— paragraph (1) and shall be accompanied by ment expressly anticipates the enactment of (1) LIEN.—In an insurance receivership pro- the information described in subparagraphs this Act and provides for the effects of this ceeding involving a direct insurer, reinsurer (A) through (D) of this paragraph if the Act. or runoff participant, there shall be a lien in claim pleads the elements of subparagraph (d) EXCLUSIVE REMEDY.—The remedies pro- favor of the Fund for the amount of any as- (A)(i)(II) of paragraph (1) and by the informa- vided under this Act shall be the exclusive sessment and any such lien shall be given tion described in subparagraphs (B) through remedy for any asbestos claim, including any priority over all other claims against the (D) of this paragraph if the claim pleads the claim described in subsection (e)(2), under participant in receivership, except for the elements of subparagraph (A)(i)(I) of para- any Federal or State law. expenses of administration of the receiver- graph (1)— (e) BAR ON ASBESTOS CLAIMS.— ship and the perfected claims of the secured (A) admissible evidence, including at a (1) IN GENERAL.—No asbestos claim (includ- creditors. Any State law that provides for minimum, a certified B-reader’s report, the ing any claim described in paragraph (2)) priorities inconsistent with this provision is underlying x-ray film, and such other evi- may be pursued, and no pending asbestos preempted by this Act. dence sufficient to establish a prima facie claim may be maintained, in any Federal or (2) PAYMENT OF ASSESSMENT.—Payment of showing that the claim may be maintained State court, except for enforcement of any assessment required by this Act shall and is not preempted under paragraph (1); claims for which an unappealable verdict or not be subject to any automatic or judicially (B) notice of any previous lawsuit or claim final order or final judgment has been en- entered stay in any insurance receivership for benefits in which the exposed person, or tered by a court before the date of enact- proceeding. This Act shall preempt any another claiming on behalf of or through the ment of this Act. State law requiring that payments by a di- injured person, asserted an injury or dis- (2) CERTAIN SPECIFIED CLAIMS.— rect insurer, reinsurer or runoff participant ability based wholly or in part on exposure (A) IN GENERAL.—Subject to section 404 (d) in an insurance receivership proceeding be to asbestos; and (e)(3) of this Act, no claim may be approved by a court, receiver or other per- (C) the history of the exposed person’s ex- brought or pursued in any Federal or State son. Payments of assessments by any direct posure, if any, to asbestos; and court or insurance receivership proceeding—

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00092 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1227 (i) relating to any default, confessed or the time limits specified in section 1441(b) of Year After Enact- Applicable stipulated judgment on an asbestos claim if title 28, United States Code. ment In Which De- Percentage: the judgment debtor expressly agreed, in (C) PROCEDURES.—The procedures for re- fendant Partici- writing or otherwise, not to contest the moval and proceedings after removal shall be pant’s Funding Ob- entry of judgment against it and the plain- in accordance with sections 1446 through 1450 ligation Ends: tiff expressly agreed, in writing or otherwise, of title 28, United States Code, except— 21 ...... 57.51 to seek satisfaction of the judgment only (i) as may be necessary to accommodate 22 ...... 56.36 against insurers or in bankruptcy; removal of any actions pending (including on 23 ...... 55.31 (ii) relating to the defense, investigation, appeal) on the date of enactment of this Act; 24 ...... 56.71 handling, litigation, settlement, or payment and 25 ...... 58.11 of any asbestos claim by any participant, in- (ii) orders to remand removed actions shall 26 ...... 59.51 cluding claims for bad faith or unfair or de- be immediately appealable. (C) REMAINING AGGREGATE PRODUCTS LIM- ceptive claims handling or breach of any du- (D) JURISDICTION.—The jurisdiction of the ITS.—The term ‘‘remaining aggregate prod- ties of good faith; or district court shall be limited to— ucts limits’’ means aggregate limits that (iii) arising out of or relating to the asbes- (i) determining whether removal was prop- apply to insurance coverage granted under tos-related injury of any individual and— er; and the ‘‘products hazard’’, ‘‘completed oper- (I) asserting any conspiracy, concert of ac- (ii) determining, based on the evidentiary ations hazard’’, or ‘‘Products—Completed tion, aiding or abetting, act, conduct, state- record, whether the claim presented is pre- Operations Liability’’ in any comprehensive ment, misstatement, undertaking, publica- empted, barred, or otherwise precluded under general liability policy issued between cal- tion, omission, or failure to detect, speak, this Act. endar years 1940 and 1986 to cover injury disclose, publish, or warn relating to the (6) CREDITS.—If, notwithstanding the ex- which occurs in any State, as reduced by— presence or health effects of asbestos or the press intent of Congress stated in this sec- (i) any existing impairment of such aggre- use, sale, distribution, manufacture, produc- tion, any court finally determines for any gate limits as of the date of enactment of tion, development, inspection, advertising, reason that an asbestos claim, including a this Act; and marketing, or installation of asbestos; or claim described under paragraph (2), for (ii) the resolution of claims for reimburse- (II) asserting any conspiracy, act, conduct, which, as of the date of enactment of this ment or coverage of liability or paid or in- statement, omission, or failure to detect, Act, there had been no verdict or final order curred loss for which notice was provided to disclose, or warn relating to the presence or or final judgment entered by a court, is not the insurer before the date of enactment of health effects of asbestos or the use, sale, subject to the exclusive remedy or preemp- this Act. distribution, manufacture, production, de- tion provisions of this section, then any par- (D) SCHEDULED PAYMENT AMOUNTS.—The velopment, inspection, advertising, mar- ticipant required to satisfy a final judgment term ‘‘scheduled payment amounts’’ means keting, or installation of asbestos, asserted executed with respect to any such claim may the future payment obligation to the Fund as or in a direct action against an insurer or elect to receive a credit against any assess- under this Act from a defendant participant reinsurer based upon any theory, statutory, ment owed to the Fund equal to the amount in the amount established under sections 203 contract, tort, or otherwise; or of the payment made with respect to such and 204. (iv) by any third party, and premised on executed judgment. The Chief Executive Of- (2) QUANTUM AND TIMING OF EROSION.— any theory, allegation, or cause of action, ficer shall require participants seeking cred- (A) EROSION UPON ENACTMENT.—The collec- for reimbursement of healthcare costs alleg- it under this section to demonstrate that the tive payment obligations to the Fund of the edly associated with the use of or exposure participant timely pursued all available rem- insurer and reinsurer participants as as- to asbestos, whether such claim is asserted edies, including remedies available under sessed by the Chief Executive Officer shall be directly, indirectly or derivatively. this section to obtain dismissal of the claim, deemed as of the date of enactment of this (B) EXCEPTIONS.—Subparagraph (A) (ii) and and that the participant notified the Chief Act to erode remaining aggregate products (iii) shall not apply to claims against par- Executive Officer at least 20 days before the limits available to a defendant participant ticipants by persons— expiration of any period within which to ap- only in an amount of 59.64 percent of each (i) with whom the participant is in privity peal the denial of a motion to dismiss based defendant participant’s scheduled payment of contract; on this section. The Chief Executive Officer amount. (ii) who have received an assignment of in- may require such participant to furnish such (B) NO ASSERTION OF CLAIM.—No insurer or surance rights not otherwise voided by this further information as is necessary and ap- reinsurer may assert any claim against a de- Act; or propriate to establish eligibility for and the fendant participant or captive insurer for in- (iii) who are beneficiaries covered by the amount of the credits. The Chief Executive surance, reinsurance, payment of a deduct- express terms of a contract with that partic- Officer may intervene in any action in which ible, or retrospective premium adjustment ipant. a credit may be due under this section. arising out of that insurer’s or reinsurer’s (3) PREEMPTION.—Any action asserting an SEC. 404. EFFECT ON INSURANCE AND REINSUR- payments to the Fund or the erosion deemed asbestos claim (including a claim described ANCE CONTRACTS. to occur under this section. in paragraph (2)) in any Federal or State (a) EROSION OF INSURANCE COVERAGE LIM- (C) POLICIES WITHOUT CERTAIN LIMITS OR court is preempted by this Act, except for ITS.— WITH EXCLUSION.—Except as provided under any action for which an unappealable verdict (1) DEFINITIONS.—In this section, the fol- subparagraph (E), nothing in this section or final order or final judgment has been en- lowing definitions shall apply: shall require or permit the erosion of any in- tered by a court before the date of enact- (A) DEEMED EROSION AMOUNT.—The term surance policy or limit that does not contain ment of this Act. ‘‘deemed erosion amount’’ means the amount an aggregate products limit, or that contains (4) DISMISSAL.—No judgment other than a of erosion deemed to occur at enactment an asbestos exclusion. judgment of dismissal may be entered in any under paragraph (2). (D) TREATMENT OF CONSOLIDATION ELEC- such action, including an action pending on (B) EARNED EROSION AMOUNT.—The term TION.—If an affiliated group elects consolida- appeal, or on petition or motion for discre- ‘‘earned erosion amount’’ means, in the tion as provided in section 204(f), the total tionary review, on or after the date of enact- event of any early sunset under section erosion of limits for the affiliated group ment of this Act. A court may dismiss any 405(f), the percentage, as set forth in the fol- under paragraph (2)(A) shall not exceed 59.64 such action on its motion. If the court denies lowing schedule, depending on the year in percent of the scheduled payment amount of the motion to dismiss, it shall stay further which the defendant participants’ funding the single payment obligation for the entire proceedings until final disposition of any ap- obligations end, of those amounts which, at affiliated group. The total erosion of limits peal taken under this Act. the time of the early sunset, a defendant par- for any individual defendant participant in (5) REMOVAL.— ticipant has paid to the fund and remains ob- the affiliated group shall not exceed its indi- (A) IN GENERAL.—If an action in any State ligated to pay into the fund. vidual share of 59.64 percent of the affiliated court under paragraph (3) is preempted, Year After Enact- Applicable group’s scheduled payment amount, as meas- barred, or otherwise precluded under this ment In Which De- Percentage: ured by the individual defendant partici- Act, and not dismissed, or if an order entered fendant Partici- pant’s percentage share of the affiliated after the date of enactment of this Act pur- pant’s Funding Ob- group’s prior asbestos expenditures. porting to enter judgment or deny review is ligation Ends: (E) RULE OF CONSTRUCTION.—Notwith- not rescinded and replaced with an order of 10 ...... 70.78 standing any other provision of this section, dismissal within 30 days after the filing of a 11 ...... 68.75 nothing in this Act shall be deemed to erode 12 ...... 67.06 motion by any party to the action advising remaining aggregate products limits of a de- 13 ...... 65.63 the court of the provisions of this Act, any 14 ...... 64.40 fendant participant that can demonstrate by party may remove the case to the district 15 ...... 63.33 a preponderance of the evidence that 75 per- court of the United States for the district in 16 ...... 62.40 cent of its prior asbestos expenditures were which such action is pending. 17 ...... 61.58 made in defense or satisfaction of asbestos (B) TIME LIMITS.—For actions originally 18 ...... 60.39 claims alleging bodily injury arising exclu- filed after the date of enactment of this Act, 19 ...... 59.33 sively from the exposure to asbestos at the notice of removal shall be filed within 20 ...... 58.38 premises owned, rented, or controlled by the

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00093 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1228 CONGRESSIONAL RECORD — SENATE February 14, 2006 defendant participant (a ‘‘premises defend- person. The parties to an arbitration may this Act shall not alter, affect, or impair any ant’’). In calculating such percentage, where agree that in the event a policy which is the rights or obligations of any person with re- expenditures were made in defense or satis- subject matter of an award is subsequently spect to any insurance or reinsurance for faction of asbestos claims alleging bodily in- determined to be eroded in a manner dif- amounts that any person pays, has paid, or jury due to exposure to the defendant par- ferent from the manner determined by the becomes legally obligated to pay in respect ticipant’s products and to asbestos at prem- arbitration in a judgment rendered by a of asbestos or other claims, except to the ex- ises owned, rented, or controlled by the de- court of competent jurisdiction from which tent that— fendant participant, half of such expendi- no appeal can or has been taken, such arbi- (A) such person pays or becomes legally ob- tures shall be deemed to be for such premises tration award may be modified by any court ligated to pay claims that are superseded by exposures. If a defendant participant estab- of competent jurisdiction upon application section 403; lishes itself as a premises defendant, 75 per- by any party to the arbitration. Any such (B) any such rights or obligations of such cent of the payments by such defendant par- modification shall govern the rights and ob- person with respect to insurance or reinsur- ticipant shall erode coverage limits, if any, ligations between such parties after the date ance are prohibited by paragraph (1) or (2) of applicable to premises liabilities under ap- of such modification. subsection (e); or plicable law. (c) EFFECT ON NONPARTICIPANTS.— (C) the limits of insurance otherwise avail- (3) METHOD OF EROSION.— (1) IN GENERAL.—No insurance company or able to such participant in respect of asbes- (A) ALLOCATION.—The amount of erosion reinsurance company that is not a partici- tos claims are deemed to be eroded under allocated to each defendant participant shall pant, other than a captive insurer, shall be subsection (a). be allocated among periods in which policies entitled to claim that payments to the Fund SEC. 405. ADDITIONAL FUNDING OR RETURN TO with remaining aggregate product limits are erode, exhaust, or otherwise limit the non- COURT. available to that defendant participant pro participant’s insurance or reinsurance obli- (a) VERIFICATION OF UNANTICIPATED rata by policy period, in ascending order by gations. CLAIMS.— attachment point. (2) OTHER CLAIMS.—Nothing in this Act (1) IN GENERAL.—If the number of claims (B) OTHER EROSION METHODS.— shall preclude a participant from pursuing that qualify for compensation under a claim (i) IN GENERAL.—Notwithstanding subpara- any claim for insurance or reinsurance from level exceed 115 percent of the number of graph (A), the method of erosion of any re- any person that is not a participant other claims expected to qualify for compensation maining aggregate products limits which are than a captive insurer. under that claim level or designation in the subject to— (d) FINITE RISK POLICIES NOT AFFECTED.— 2004 Congressional Budget Office estimate of (I) a coverage-in-place or settlement agree- (1) IN GENERAL.—Notwithstanding any asbestos-injury claims, or the Fund other- ment between a defendant participant and 1 other provision of this Act, this Act shall not wise is projected to be unable to pay all or more insurance participants as of the date alter, affect or impair any rights or obliga- qualified claims in any year in the future, of enactment; or tions of— the Chief Executive Officer shall conduct a (II) a final and nonappealable judgment as (A) any party to an insurance contract review of a statistically significant sample of the date of enactment or resulting from a that expressly provides coverage for govern- of claims qualifying for compensation under claim for coverage or reimbursement pend- mental charges or assessments imposed to the appropriate claim level or designation. replace insurance or reinsurance liabilities ing as of such date, shall be as specified in (2) DETERMINATIONS.— in effect on the date of enactment of this such agreement or judgment with regard to (A) IN GENERAL.—The Chief Executive Offi- Act; or erosion applicable to such insurance partici- cer’s review shall examine the best available (B) subject to paragraph (2), any person pants’ policies. medical evidence in order to determine with respect to any insurance or reinsurance (ii) REMAINING LIMITS.—To the extent that which one of the following is true: purchased by a participant after December a final nonappealable judgment or settle- (i) Without a significant number of excep- 31, 1996, that expressly (but not necessarily ment agreement to which an insurer partici- tions, all of the claimants who qualified for exclusively) provides coverage for asbestos pant and a defendant participant are parties compensation under the claim level or des- liabilities, including those policies com- in effect as of the date of enactment of this ignation suffer from an injury or disease monly referred to as ‘‘finite risk’’ policies. Act extinguished a defendant participant’s that was caused by occupational exposure to (2) LIMITATION.—No person may assert that right to seek coverage for asbestos claims asbestos. any amounts paid to the Fund in accordance under an insurer participant’s policies, any (ii) A significant number of claimants who with this Act are covered by any policy de- remaining limits in such policies shall not be qualified for compensation under the claim scribed under paragraph (1)(B) purchased by considered to be remaining aggregate prod- level or designation do not suffer from an in- ucts limits under subsection (a)(1)(A). a defendant participant, unless such policy jury or disease that was caused by occupa- (4) PAYMENTS BY DEFENDANT PARTICIPANT.— specifically provides coverage for required tional exposure to asbestos. Payments made by a defendant participant payments to a Federal trust fund established (B) FUTURE CLAIMS.—If the Chief Executive shall be deemed to erode, exhaust, or other- by a Federal statute to resolve asbestos in- Officer projects that the Fund will be unable wise satisfy applicable self-insured reten- jury claims. to pay all qualified claims in any year in the tions, deductibles, retrospectively rated pre- (e) EFFECT ON CERTAIN INSURANCE AND RE- future, the Chief Executive Officer shall also miums, and limits issued by nonpartici- INSURANCE CLAIMS.— determine whether the Fund lacks the re- pating insolvent or captive insurance compa- (1) NO COVERAGE FOR FUND ASSESSMENTS.— sources to pay all qualified claimants over nies. Reduction of remaining aggregate lim- No participant or captive insurer may pursue the life of the Fund. its under this subsection shall not limit the an insurance or reinsurance claim against (C) FINAL DETERMINATION.—The final deter- right of a defendant participant to collect another participant or captive insurer for mination of the Chief Executive Officer from any insurer not a participant. payments to the Fund required under this under this paragraph shall be made in ac- (5) EFFECT ON OTHER INSURANCE CLAIMS.— Act, except under a contract specifically pro- cordance with notice and comment under Other than as specified in this subsection, viding insurance or reinsurance for required subchapter II of chapter 5 of title 5, United this Act does not alter, change, modify, or payments to a Federal trust fund established States Code (commonly referred to as the affect insurance for claims other than asbes- by a Federal statute to resolve asbestos in- Administrative Procedure Act). tos claims. jury claims or, where applicable, under finite (b) JUDICIAL REVIEW OF CHIEF EXECUTIVE (b) DISPUTE RESOLUTION PROCEDURE.— risk policies under subsection (d). OFFICER VERIFICATION OF CLAIMS.—The Chief (1) ARBITRATION.—The parties to a dispute (2) CERTAIN INSURANCE ASSIGNMENTS VOID- Executive Officer’s determination that ei- regarding the erosion of insurance coverage ED.—Any assignment of any rights to insur- ther subparagraph (A) or (B) in paragraph (2) limits under this section may agree in writ- ance coverage for asbestos claims to any per- of subsection (a) is true shall be subject to ing to settle such dispute by arbitration. son who has asserted an asbestos claim be- judicial review in the United States Court of Any such provision or agreement shall be fore the effective date, or to any trust, per- Appeals for the District of Columbia Circuit. valid, irrevocable, and enforceable, except son, or other entity not part of an affiliated Review may be sought by any interested for any grounds that exist at law or in equity group as defined in section 201(1) of this Act party. The review shall be conducted in ac- for revocation of a contract. established or appointed for the purpose of cordance with the standards and procedures (2) TITLE 9, UNITED STATES CODE.—Arbitra- paying asbestos claims which were asserted of chapter 5 of title 5, United States Code tion of such disputes, awards by arbitrators, before the effective date, or by any Tier I de- (commonly referred to as the Administrative and confirmation of awards shall be governed fendant participant shall be null and void. Procedure Act), except that all findings by title 9, United States Code, to the extent This subsection shall not void or affect in based on medical science shall be reviewed such title is not inconsistent with this sec- any way any assignments of rights to insur- de novo. tion. In any such arbitration proceeding, the ance coverage other than to asbestos claim- (c) ADDITIONAL TRUST-FUND ASSESSMENTS erosion principles provided for under this ants or to trusts, persons, or other entities OR RETURN TO COURT.— section shall be binding on the arbitrator, not part of an affiliated group as defined in (1) ADDITIONAL ASSESSMENTS AGAINST DE- unless the parties agree to the contrary. section 201(1) of this Act established or ap- FENDANT PARTICIPANTS.— (3) FINAL AND BINDING AWARD.—An award pointed for the purpose of paying asbestos (A) DEFINITION.—In this paragraph the by an arbitrator shall be final and binding claims, or by Tier I defendant participants. term ‘‘nonbankruptcy defendant partici- between the parties to the arbitration, but (3) INSURANCE CLAIMS PRESERVED.—Not- pant’’ means a defendant participant that shall have no force or effect on any other withstanding any other provision of this Act, has not entered into a final confirmed plan

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00094 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1229 of reorganization under section 524(g) of title such a diagnosis, except that claimants who judicial review in the United States Court of 11, United States Code. filed a claim against the Fund under this Act Appeals for the District of Columbia Circuit. (B) ADDITIONAL ASSESSMENTS.— before the return to court shall have 2 years Review may be sought by any interested (i) IN GENERAL.—The Chief Executive Offi- after the date of the return to court to file party. The review shall be conducted under cer shall make a recommendation under an action under this paragraph, whichever is the standards and procedures of chapter 5 of clause (ii), if the United States Court of Ap- longer. title 5, United States Code, except that all peals finds as a result of its review under (ii) LIMITATION.—An individual who has re- findings based on medical science shall be re- subsection (b) that— ceived or is entitled to receive an award viewed de novo, and the Chief Executive Offi- (I) without a significant number of excep- from the Fund may not bring an action cer’s corrections shall be reviewed to deter- tions, all of the claimants who qualified for under this paragraph, except— mine that the corrections are reasonably tai- compensation under the claim level or des- (I) an individual who received an award for lored to achieve the result required by this ignation under review suffer from an injury a nonmalignant disease (Levels I through V) section. The Court may order such relief as or disease that is caused by occupational ex- from the Fund may assert a claim for a ma- is necessary to achieve the results required posure to asbestos; or lignant disease under this paragraph, unless by this section. (II) the Fund lacks the resources necessary the malignancy was diagnosed or the claim- (f) TEMPORARY STAY OF UNANTICIPATED to pay all qualified claimants at the present ant had discovered facts that would have led CLAIMS.—The Chief Executive Officer shall time, and the Chief Executive Officer a reasonable person to obtain such a diag- stay payment of claims for a claim level that projects that the Fund will remain unable to nosis before the date on which the nonmalig- results in or is subject to review under sub- pay all qualified claimants over the life of nant claim was settled; and section (a) pending such review and the col- the Fund. (II) an individual who received an award lection of additional assessments or the cor- (ii) RECOMMENDATIONS.—If the United for a nonmalignant or malignant disease (ex- rection of compensation criteria. States Court of Appeals makes a finding cept mesothelioma) (Levels I through VI) (g) REPORT.—The Chief Executive Officer under subclause (I) or (II) of clause (i), the from the Fund may assert a claim for meso- shall submit an annual report to the Com- Chief Executive Officer shall recommend to thelioma under this paragraph, unless the mittee on the Judiciary of the Senate and Congress that it enact— mesothelioma was diagnosed or the claimant the Committee on the Judiciary of the House (I) additional assessments against all non- had discovered facts that would have led a of Representatives on the operation of the bankruptcy defendant participants, in ac- reasonable person to obtain such a diagnosis Asbestos Injury Claims Resolution Fund cordance with each nonbankruptcy defend- before the date on which the nonmalignant within 6 months after the close of each fiscal ant participant’s relative prior assessments or other malignant claim was settled. year. (taking into account hardship and inequity (C) LIMITS ON ATTORNEYS’ FEES.— (h) CONTENTS OF REPORT.—The annual re- reductions), in an amount necessary to allow (i) IN GENERAL.—In any action permitted the Fund to compensate all qualified claim- port submitted under this subsection shall under subparagraph (B), notwithstanding include an analysis of— ants; or any contract, the representative of an indi- (II) an expansion of the Fund’s borrowing (1) the claims experience of the program vidual may not receive, for services rendered during the most recent fiscal year, includ- authority, by an amount necessary to allow in connection with an action permitted the Fund to compensate all qualified claim- ing— under subparagraph (A), more than 20 per- (A) the number of claims made to the Cor- ants. cent of a final award made as a result of such (2) EXPEDITED CONGRESSIONAL ACTION ON poration and a description of the types of action. medical diagnoses and asbestos exposures LIMITED ADDITIONAL ASSESSMENTS OR BOR- (ii) REASONABLE FEE FOR WORK ACTUALLY ROWING.—Either of the following shall con- underlying those claims; AND REASONABLY PERFORMED.—In addition to (B) the number of claims denied by the stitute a modification of the Fund that shall the limitation specified in clause (i), a rep- be submitted by the Chief Executive Officer Corporation and a description of the types of resentative of an individual may not receive medical diagnoses and asbestos exposures to Congress in the appropriate form for expe- a fee unless— dited action under title V: underlying those claims, and a general de- (I) the representative submits to the court scription of the reasons for their denial; (A) A recommendation of additional as- appropriately detailed billing documentation sessments that does not exceed a defendant (C) a summary of the eligibility determina- for the work actually performed in the tions made by the Corporation under section participant’s original assessment obligation course of representation of the individual; by more than 10 percent, if no additional as- 114; and (D) a summary of the awards made from sessment has been imposed by Congress (II) the court finds that the fee to be within the previous 5 years. the Fund, including the amount of the awarded is for work actually and reasonably (B) A recommendation to expand bor- awards; and performed on behalf of the claimant does not rowing authority by no more than (E) for each eligible condition, a statement exceed 200 percent of a reasonable hourly fee $5,000,000,000. of the percentage of asbestos claimants who for such work. (3) RETURN TO COURT.— filed claims during the prior calendar year (D) CONTINUED FUNDING.—If asbestos claims (A) IN GENERAL.—If Congress declines to and were determined to be eligible to receive are returned to court under subparagraph enact within 1 year after the date of the rec- compensation under this Act, who have re- (A), participants shall remain required to ommendation made by the Chief Executive ceived the compensation to which such make payments as provided under subtitles Officer under paragraph (1)(B), and the Chief claimants are entitled according to section A and B of title II. The Fund shall pay all Executive Officer again determines that the 131; Fund lacks the resources necessary to pay claims under Levels VI, and VII, that were (2) the administrative performance of the all qualified claimants at the present time, found to qualify for compensation before the program, including— and the Chief Executive Officer continues to date of a return to court under subparagraph (A) the performance of the program in project that the Fund will remain unable to (A). If the full amount of payments required meeting the time limits prescribed by law pay all qualified claimants over the life of under title II is not necessary for the Fund and an analysis of the reasons for any sys- the Fund, any individual who qualifies for to pay claims that remain entitled to com- temic delays; compensation under the Fund may file a pensation, pay the Fund’s debt, and support (B) any backlogs of claims that may exist civil action in United States District Court the Fund’s continued operation as needed to and an explanation of the reasons for such against any defendant participant to obtain pay such claims and debt, the Chief Execu- backlogs; relief for injuries suffered as a result of expo- tive Officer may reduce such payments. Any (C) the costs to the Fund of administering sure to asbestos. such reductions shall be allocated among the program; and participants in the same proportion as the li- (B) EXCLUSIVE REMEDY AND LIMITATIONS.— (D) any other significant factors bearing ability under subtitles A and B of title II. (i) IN GENERAL.—As of the effective date of on the efficiency of the program; (d) CORRECTION OF INAPPROPRIATE CLAIMS a return to court authorized by this para- (3) the financial condition of the Fund, in- CRITERIA.—If the United States Court of Ap- graph, an action under this paragraph shall peals finds as a result of its review under cluding— be the exclusive remedy for any asbestos subsection (b) that a significant number the (A) statements of the Fund’s revenues, ex- claim that might otherwise exist under Fed- claimants who qualified for compensation penses, assets, and liabilities; eral, State, or other law, regardless of under the claim level under review do not (B) the identity of all participants, the whether such claim arose before or after the suffer from an injury or disease that was funding allocations of each participant, and effective date of this Act or of the return to caused by occupational exposure to asbestos, the total amounts of all payments to the court, except that claims against the Fund the Chief Executive Officer shall correct the Fund; that have qualified for compensation and re- compensation criteria in order to exclude (C) a list of all financial hardship or in- main eligible for compensation under sub- from eligibility for compensation all such equity adjustments applied for during the paragraph (F) may be paid by the Fund. The claims. fiscal year, and the adjustments that were applicable statute of limitations for a claim (e) JUDICIAL REVIEW OF CHIEF EXECUTIVE made during the fiscal year; brought under this paragraph is 2 years after OFFICER CORRECTIONS.—The Chief Executive (D) a statement of the investments of the the asbestos injury or disease was diagnosed Officer’s correction of compensation criteria Fund; and or the claimant had discovered facts that under subsection (d) shall become effective (E) a statement of the borrowings of the would have led a reasonable person to obtain upon the conclusion of final, unappealable Fund; and

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00095 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1230 CONGRESSIONAL RECORD — SENATE February 14, 2006 (4) a summary of prosecutions under sec- tional Safety and Health Administration Officer (or equivalent thereof) of the Cor- tion 1348 of title 18, United States Code (as under the Occupational Safety and Health poration. added by this Act). Act of 1970 (29 U.S.C. 651 et seq.), relating to (b) CONTENTS.—The statement required (i) INJUNCTION AFTER CONFIRMATION OF occupational exposure to asbestos, the Chief under subsection (a) shall certify that the BANKRUPTCY PLAN OF REORGANIZATION.— Executive Officer shall refer the matter in periodic report containing the financial (1) IN GENERAL.—Section 524(g)(2)(B)(ii) writing within 30 days after receiving that statements fully complies with the require- (IV)(bb) of title 11, United States Code, is information and refer the matter to the Sec- ments of this Act and that information con- amended by inserting after ‘‘plan’’ the fol- retary of Labor or the appropriate State tained in the periodic report fairly presents, lowing: ‘‘, or, if such a vote is not obtained agency with authority to enforce occupa- in all material respects, the financial condi- with respect to any such class of claimants tional safety and health standards, for inves- tion and results of operations of the Corpora- so established, the plan satisfies the require- tigation for possible civil or criminal pen- tion. ments for confirmation of a plan under sec- alties under section 17 of the Occupational (c) CRIMINAL PENALTIES.—Whoever— tion 1129(b) that would apply to such class if Safety and Health Act of 1970 (29 U.S.C. 666). (1) certifies any statement as set forth the class did not accept the plan for purposes SEC. 408. NONDISCRIMINATION OF HEALTH IN- under subsections (a) and (b), knowing that of section 1129(a)(8) (whether or not the class SURANCE. the periodic report accompanying the state- has accepted the plan)’’. (a) DENIAL, TERMINATION, OR ALTERATION ment does not comport with all the require- (2) EFFECTIVE DATE; APPLICATION.—The OF HEALTH COVERAGE.—No health insurer of- ments set forth under this section, shall be amendment made by paragraph (1) shall take fering a health plan may deny or terminate fined not more than $1,000,000 or imprisoned effect on the date of enactment of this Act, coverage, or in any way alter the terms of not more than 10 years, or both; or and shall apply with respect to cases under coverage, of any claimant or the beneficiary (2) willfully certifies any statement as set title 11 of the United States Code, which of a claimant, on account of the participa- forth under subsections (a) and (b), knowing were commenced before, on, or after such tion of the claimant or beneficiary in a med- that the periodic report accompanying the date. ical monitoring program under this Act, or statement does not comport with all the re- SEC. 406. RULES OF CONSTRUCTION RELATING as a result of any information discovered as quirements set forth in this section, shall be TO LIABILITY OF THE UNITED a result of such medical monitoring. fined not more than $5,000,000, or imprisoned STATES GOVERNMENT. (b) DEFINITIONS.—In this section: not more than 20 years, or both. (a) CAUSES OF ACTIONS.—Except as other- (1) HEALTH INSURER.—The term ‘‘health in- SEC. 410. OPT-OUT RIGHTS OF CERTAIN TRUSTS wise specifically provided in this Act, noth- surer’’ means— AND EFFECT OF OPT-OUT. ing in this Act shall be construed as creating (A) an insurance company, healthcare serv- (a) OPT-OUT RIGHTS.—Any trust defined a cause of action against the United States ice contractor, fraternal benefit organiza- under section 201(8) that has been established Government, any entity established under tion, insurance agent, third-party Chief Ex- or formed under a plan of reorganization this Act, or any officer or employee of the ecutive Officer, insurance support organiza- under chapter 11 of title 11, United States United States Government or such entity. tion, or other person subject to regulation Code, confirmed by a duly entered order or (b) FUNDING LIABILITY.—Nothing in this under the laws related to health insurance of judgment of a court, which order or judg- Act shall be construed to— any State; ment is no longer subject to any appeal or (1) create any obligation of funding from (B) a managed care organization; or judicial review on the date of enactment of the United States Government including the (C) an employee welfare benefit plan regu- this Act, may elect not to be covered by this coverage of any costs associated with bor- lated under the Employee Retirement In- Act by filing written notice of such election rowing authorized under section 221(b)(2); or come Security Act of 1974 (29 U.S.C. 1001 et to the Chief Executive Officer not later than (2) obligate the United States Government seq.). 90 days after the date of enactment of this to pay any award or part of an award, if (2) HEALTH PLAN.—The term ‘‘health plan’’ Act. amounts in the Fund are inadequate. means— (b) EFFECT OF OPT-OUT.— SEC. 407. VIOLATIONS OF ENVIRONMENTAL (A) a group health plan (as such term is de- (1) IN GENERAL.—This Act nor any amend- HEALTH AND SAFETY REQUIRE- fined in section 607 of the Employee Retire- ment made by this Act shall apply to— MENTS. (A) any trust that makes an election under (a) ASBESTOS IN COMMERCE.—If the Chief ment Income Security Act of 1974 (29 U.S.C. subsection (a); or Executive Officer receives information con- 1167)), and a multiple employer welfare ar- (B) any claim or future demand that has cerning conduct occurring after the date of rangement (as defined in section 3(4) of such been channeled to that trust. enactment of this Act that may have been a Act) that provides health insurance cov- (2) ASSETS AND OTHER RIGHTS AND CLAIMS.— violation of standards issued by the Environ- erage; or A trust that makes an election under sub- mental Protection Agency under the Toxic (B) any contractual arrangement for the section (a) shall retain all of its assets. The Substances Control Act (15 U.S.C. 2601 et provision of a payment for healthcare, in- contractual and other rights of a trust mak- seq.), relating to the manufacture, importa- cluding any health insurance arrangement or ing an election under subsection (a) and tion, processing, disposal, and distribution in any arrangement consisting of a hospital or claims against other persons (whether held commerce of asbestos-containing products, medical expense incurred policy or certifi- directly or indirectly by others for the ben- the Chief Executive Officer shall refer the cate, hospital or medical service plan con- efit of the trust), including the rights and matter in writing within 30 days after receiv- tract, or health maintenance organizing sub- claims of the trust against insurers, shall be ing that information to the Chief Executive scriber contract. preserved and not abrogated by this Act. Officer of the Environmental Protection (c) CONFORMING AMENDMENTS.— Agency and the United States attorney for (1) ERISA.—Section 702(a)(1) of the Em- TITLE V—EXPEDITED CONGRESSIONAL possible civil or criminal penalties, including ployee Retirement Income Security Act of ACTION those under section 17 of the Toxic Sub- 1974 (29 U.S.C. 1182(a)(1)), is amended by add- SEC. 501. CONGRESSIONAL ACTION REGARDING stances Control Act (15 U.S.C. 2616), and to ing at the end the following: MODIFICATIONS OF THE FUND. the appropriate State authority with juris- ‘‘(I) Participation in a medical monitoring (a) IN GENERAL.—A modification of the diction to investigate asbestos matters. program under the Fairness in Asbestos In- Fund that is subject to action under the pro- (b) ASBESTOS AS AIR POLLUTANT.—If the jury Resolution Act of 2006.’’. cedures of this title shall be submitted by Chief Executive Officer receives information (2) PUBLIC SERVICE HEALTH ACT.—Section the Chief Executive Officer to the chairman concerning conduct occurring after the date 2702(a)(1) of the Public Health Service Act (42 and ranking member of the Committees on of enactment of this Act that may have been U.S.C. 300gg–1(a)(1)) is amended by adding at the Judiciary of the United States Senate a violation of standards issued by the Envi- the end the following: and the House of Representatives. The modi- ronmental Protection Agency under the ‘‘(I) Participation in a medical monitoring fication shall take effect only if Congress en- Clean Air Act (42 U.S.C. 7401 et seq.), relating program under the Fairness in Asbestos In- acts a joint resolution of approval, described to asbestos as a hazardous air pollutant, the jury Resolution Act of 2006.’’. under section 602, regarding the modifica- Chief Executive Officer shall refer the mat- (3) INTERNAL REVENUE CODE OF 1986.—Sec- tion. A modification that does not take ef- ter in writing within 30 days after receiving tion 9802(a)(1) of the Internal Revenue Code fect as a result of Congress’s failure to ap- that information to the Chief Executive Offi- of 1986 is amended by adding at the end the prove a joint resolution, or Congress’s failure cer of the Environmental Protection Agency following: to override the President’s veto of a joint and the United States attorney for possible ‘‘(I) Participation in a medical monitoring resolution, may not be resubmitted to Con- criminal and civil penalties, including those program under the Fairness in Asbestos In- gress in the same form. under section 113 of the Clean Air Act (42 jury Resolution Act of 2006.’’. (b) END-OF-SESSION SUBMISSIONS.— U.S.C. 7413), and to the appropriate State au- SEC. 409. CORPORATE RESPONSIBILITY FOR AN- (1) IN GENERAL.—In addition to the oppor- thority with jurisdiction to investigate as- NUAL AND FINANCIAL REPORTS. tunity for approval otherwise provided under bestos matters. (a) IN GENERAL.—Each periodic report, in- this title, in the case of a modification that (c) OCCUPATIONAL EXPOSURE.—If the Chief cluding the annual report of the Chief Execu- was submitted to Congress— Executive Officer receives information con- tive Officer filed by the Chief Executive Offi- (A) in the case of the Senate, 60 session cerning conduct occurring after the date of cer in connection with this Act, shall be ac- days; or enactment of this Act that may have been a companied by a written statement by the (B) in the case of the House of Representa- violation of standards issued by the Occupa- Chief Executive Officer and Chief Financial tives, 60 legislative days;

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00096 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1231 before the date the Congress adjourns a ses- lution described in subsection (a), and a sin- (5) The scope of the asbestos litigation cri- sion of Congress through the date on which gle quorum call at the conclusion of the de- sis cuts across every State and virtually the same or succeeding Congress first con- bate if requested in accordance with the every industry. venes its next session, section 602 shall apply rules of the Senate, the vote on final passage (6) The United States Supreme Court has to such modification in the succeeding ses- of the joint resolution shall occur. recognized that Congress must act to create sion of Congress. (4) Appeals from the decisions of the chair a more rational asbestos claims system. In (2) TREATMENT.—In applying section 602 for relating to the application of the rules of the 1991, a Judicial Conference Ad Hoc Com- purposes of such additional review, a modi- Senate to the procedure relating to a joint mittee on Asbestos Litigation, appointed by fication described under paragraph (1) shall resolution described in subsection (a) shall Chief Justice William Rehnquist, found that be treated as though such modification were be decided without debate. the ‘‘ultimate solution should be legislation submitted to Congress— (e) CONSIDERATION AFTER EXPIRATION OF recognizing the national proportions of the (A) in the case of the Senate, the 15th ses- TIME.—In the Senate the procedure specified problem . . . and creating a national asbestos sion day; or in subsection (c) or (d) shall not apply to the dispute resolution scheme . . .’’. The Court (B) in the case of the House of Representa- consideration of a joint resolution respecting found in 1997 in Amchem Products Inc. v. tives, on the 15th legislative day, after the a modification of the Fund after the expira- Windsor, 521 U.S. 591, 595 (1997), that ‘‘[t]he succeeding session of Congress first con- tion of the 60 session days beginning with the argument is sensibly made that a nationwide venes. submission of the modification by the Chief administrative claims processing regime SEC. 502. CONGRESSIONAL APPROVAL PROCE- Executive Officer to Congress. would provide the most secure, fair, and effi- DURE. (f) PREVIOUS ACTION.—If, before the passage cient means of compensating victims of as- (a) JOINT RESOLUTION.—For purposes of by one House of a joint resolution of that bestos exposure.’’ In 1999, the Court in Ortiz this section, the term ‘‘joint resolution’’ House described in subsection (a), that House v. Fibreboard Corp., 527 U.S. 819, 821 (1999), means only a joint resolution introduced in receives from the other House a joint resolu- found that the ‘‘elephantine mass of asbestos the period beginning on the date on which tion described in subsection (a), then the fol- cases . . . defies customary judicial adminis- the modification was submitted by the Chief lowing procedures shall apply: tration and calls for national legislation.’’ Executive Officer to Congress (i.e., to the (1) The joint resolution of the other House That finding was again recognized in 2003 by chairmen and ranking members of the Com- shall not be referred to a committee. the Court in Norfolk & Western Railway Co. mittees on the Judiciary of the Senate and (2) With respect to a joint resolution de- v. Ayers, 123 S. Ct. 1210 (2003). the House of Representatives) and ending 60 scribed in subsection (a) of the House receiv- (7) This crisis, and its significant effect on days thereafter (excluding days either House ing the joint resolution, the procedure in the health and welfare of the people of the of Congress is adjourned for more than 3 that House shall be the same as if no joint United States, on interstate and foreign days during a session of Congress), the mat- resolution had been received from the other commerce, and on the bankruptcy system, ter after the resolving clause of which is as House, except the vote on final passage shall compels Congress to exercise its power to follows: ‘‘The Fairness in Asbestos Injury be on the joint resolution of the other House. regulate interstate commerce and create Resolution Act of 2006 is modified as follows: (g) RULEMAKING.—This section is enacted this legislative solution in the form of a na- lllll ’’. (The blank spaces being filled in by Congress— tional asbestos injury claims resolution pro- with the Chief Executive Officer’s proposed (1) as an exercise of the rulemaking power gram to supersede all existing methods to change to the Fund that requires congres- of the Senate and House of Representatives, compensate those injured by asbestos, except sional approval.) respectively, and as such it is deemed a part as specified in this Act. (b) REFERRAL.—A joint resolution de- of the rules of each House, respectively, but (8) This crisis has also imposed a delete- scribed in subsection (a) shall be referred to applicable only with respect to the procedure rious burden upon the United States bank- the Committees on the Judiciary of the Sen- to be followed in that House in the case of a ruptcy courts, which have assumed a heavy ate and House of Representatives. joint resolution described in subsection (a), burden of administering complicated and (c) SENATE REPORT OR DISCHARGE.—In the and it supercedes other rules only to the ex- protracted bankruptcies with limited per- Senate, if a joint resolution described in sub- tent that it is inconsistent with such rules; sonnel. section (a) (or an identical joint resolution) and (9) This crisis has devastated many com- has not been reported by the Judiciary Com- (2) with full recognition of the constitu- munities across the country, but hardest hit mittee at the end of 20 calendar days after tional right of either House to change the has been Libby, Montana, where tremolite the committee received the resolution, the rules (so far as relating to the procedure of asbestos, one of the most deadly forms of as- committee may be discharged from further that House) at any time, in the same man- bestos, was contained in the vermiculite ore consideration of such joint resolution upon a ner, and to the same extent as in the case of mined from the area and despite ongoing petition supported in writing by 5 Members any other rule of that House. cleanup by the Environmental Protection of the Senate, and such joint resolution shall Agency, many still suffer from the deadly be placed on the calendar. SA 2803. Mr. CORNYN submitted an dust. (d) PROCEDURES.—(1) In the Senate, when amendment intended to be proposed to (10) The asbestos found in Libby, Montana, tremolite asbestos, has demonstrated an un- the Judiciary Committee has reported, or amendment SA 2746 proposed by Mr. when the committee is discharged (under usually high level of toxicity, as compared to subsection (c)) from further consideration of FRIST (for Mr. SPECTER (for himself and chrysotile asbestos. Diseases contracted a joint resolution described in subsection (a), Mr. LEAHY)) to the bill S. 852, to create from this tremolite asbestos are unique and it is at any time thereafter in order (even a fair and efficient system to resolve highly progressive. These diseases typically though a previous motion to the same effect claims of victims for bodily injury manifest in a characteristic pleural disease has been disagreed to) for a motion to pro- caused by asbestos exposure, and for pattern, and often result in severe impair- ceed to the consideration of the joint resolu- other purposes; which was ordered to ment or death without radiographic intersti- tial disease or typical chrysotile markers of tion, and all points of order against the joint lie on the table; as follows: resolution (and against consideration of the radiographic severity. According to the Strike all after the enacting clause and in- joint resolution) are waived. The motion is Agency for Toxic Substances and Disease sert the following: not subject to amendment, or to a motion to Registry previous studies by the National In- postpone, or to a motion to proceed to the SECTION 1. SHORT TITLE. stitutes of Occupational Safety and Health consideration of other business. A motion to (a) SHORT TITLE.—This Act may be cited as document significantly increased rates of reconsider the vote by which the motion is the ‘‘Fairness in Asbestos Injury Resolution pulmonary abnormalities and disease (asbes- agreed to or disagreed to shall not be in Act of 2006’’ or the ‘‘FAIR Act of 2006’’. tosis and lung cancer) among former work- order. If a motion to proceed to the consider- SEC. 2. FINDINGS AND PURPOSE. ers. ation of the joint resolution is agreed to, the (a) FINDINGS.—Congress finds the fol- (11) Environmental Protection Agency sup- joint resolution shall remain the unfinished lowing: ported studies have determined that the raw business of the Senate until disposed of. (1) Millions of Americans have been ex- vermiculite ore mined and milled in Libby, (2) In the Senate, debate on the joint reso- posed to forms of asbestos that can have dev- Montana contained 21 to 26 percent asbestos, lution, and on all debatable motions and ap- astating health effects. by weight. The milled ore, resulting from the peals in connection therewith, shall be lim- (2) Various injuries can be caused by expo- processing in Libby, which was shipped out ited to not more than 10 hours, which shall sure to some forms of asbestos, including of Libby contained markedly reduced per- be divided equally between those favoring pleural disease and some forms of cancer. centages of asbestos. A 1982 Environmental and those opposing the joint resolution. A (3) The injuries caused by asbestos can Protection Agency-supported study con- motion further to limit debate is in order have latency periods of up to 40 years, and cluded that ore shipped out of Libby con- and not debatable. An amendment to, or a even limited exposure to some forms of as- tained 0.3 to 7 percent asbestos, by weight. motion to postpone, or a motion to proceed bestos may result in injury in some cases. (12) In Libby, Montana, exposure pathways to the consideration of other business, or a (4) Asbestos litigation has had a significant are and were not limited to the workplace, motion to recommit the joint resolution is detrimental effect on the country’s economy, rather, for decades there has been an unprec- not in order. driving companies into bankruptcy, divert- edented 24 hour per day contamination of the (3) In the Senate, immediately following ing resources from those who are truly sick, community’s homes, playgrounds, gardens, the conclusion of the debate on a joint reso- and endangering jobs and pensions. and community air, such that the entire

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00097 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1232 CONGRESSIONAL RECORD — SENATE February 14, 2006 community of Libby, Montana, has been des- participants or insurer participants and (IV) the Equal Pay Act of 1963 (29 U.S.C. ignated a Superfund site and is listed on the their successors in interest. 206); Environmental Protection Agency’s Na- (b) PURPOSE.—The purpose of this Act is (V) the Family and Medical Leave Act of tional Priorities List. to— 1993 (29 U.S.C. 2601 et seq.); (13) These multiple exposure pathways (1) create a privately funded, publicly ad- (VI) section 1979 of the Revised Statutes of have caused severe asbestos disease and ministered fund to provide the necessary re- the United States (42 U.S.C. 1983); or death not only in former workers at the sources for a fair and efficient system to re- (VII) the Rehabilitation Act of 1973 (29 mine and milling facilities, but also in the solve asbestos injury claims that will pro- U.S.C. 701 et seq.). workers’ spouses and children, and in com- vide compensation for legitimate present (4) ASBESTOS CLAIMANT.—The term ‘‘asbes- munity members who had no direct contact and future claimants of asbestos exposure as tos claimant’’ means an individual who files with the mine. According to the Environ- provided in this Act; a claim under section 113. mental Protection Agency, some potentially (2) provide compensation to those present (5) CIVIL ACTION.—The term ‘‘civil action’’ important alternative pathways for past as- and future victims based on the severity of means all suits of a civil nature in State or bestos exposure include elevated concentra- their injuries, while establishing a system Federal court, whether cognizable as cases at tions of asbestos in ambient air and rec- flexible enough to accommodate individuals law or in equity or in admiralty, but does reational exposures from children playing in whose conditions worsen; not include an action relating to any work- piles of vermiculite. Furthermore, the Envi- (3) relieve the Federal and State courts of ers’ compensation law, or a proceeding for ronmental Protection Agency has deter- the burden of the asbestos litigation; and benefits under any veterans’ benefits pro- mined that current potential pathways of ex- (4) increase economic stability by resolv- gram. posure include vermiculite placed in walls ing the asbestos litigation crisis that has (6) COLLATERAL SOURCE COMPENSATION.— and attics as thermal insulation, vermiculite bankrupted companies with asbestos liabil- The term ‘‘collateral source compensation’’ or ore used as road bed material, ore used as ity, diverted resources from the truly sick, means the compensation that the claimant ornamental landscaping, and vermiculite or and endangered jobs and pensions. received, or is entitled to receive, from a de- concentrated ore used as a soil and garden SEC. 3. DEFINITIONS. fendant or an insurer of that defendant, or amendment or aggregate in driveways. In this Act, the following definitions shall compensation trust as a result of a final (14) The Environmental Protection Agency apply: judgment or settlement for an asbestos-re- also concluded, ‘‘Asbestos contamination ex- (1) ADMINISTRATOR.—The term ‘‘Adminis- lated injury that is the subject of a claim ists in a number of potential source mate- trator’’ means the Administrator of the Of- filed under section 113. rials at multiple locations in and around the fice of Asbestos Disease Compensation ap- (7) ELIGIBLE DISEASE OR CONDITION.—The residential and commercial area of Libby. . . pointed under section 101(b). term ‘‘eligible disease or condition’’ means While data are not yet sufficient to perform (2) ASBESTOS.—The term ‘‘asbestos’’ in- the extent that an illness meets the medical reliable human-health risk evaluations for cludes— criteria requirements established under sub- all sources and all types of disturbance, it is (A) chrysotile; title C of title I. apparent that releases of fiber concentra- (B) amosite; (8) EMPLOYERS’ LIABILITY ACT.—The term tions higher than Occupational Safety and (C) crocidolite; ‘‘Act of April 22, 1908 (45 U.S.C. 51 et seq.), Health Administration standards may occur (D) tremolite asbestos; commonly known as the Employer’s Liabil- in some cases . . . and that screening-level (E) winchite asbestos; ity Act’’ shall, for all purposes of this Act, estimates of lifetime excess cancer risk can (F) richterite asbestos; include the Act of June 5, 1920 (46 U.S.C. App. exceed the upper-bound risk range of 1E–04 (G) anthophyllite asbestos; 688), commonly known as the Jones Act, and usually used by the Environmental Protec- (H) actinolite asbestos; the related phrase ‘‘operations as a common tion Agency for residents under a variety of (I) asbestiform amphibole minerals; carrier by railroad’’ shall include operations exposure scenarios. The occurrence of non- (J) any of the minerals listed under sub- as an employer of seamen. occupational asbestos-related disease that paragraphs (A) through (I) that has been (9) FUND.—The term ‘‘Fund’’ means the As- has been observed among Libby residents is chemically treated or altered, and any bestos Injury Claims Resolution Fund estab- extremely unusual, and has not been associ- asbestiform variety, type, or component lished under section 221. ated with asbestos mines elsewhere, sug- thereof; and (10) INSURANCE RECEIVERSHIP PROCEEDING.— gesting either very high and prolonged envi- (K) asbestos-containing material, such as The term ‘‘insurance receivership pro- ronmental exposures and/or increased tox- asbestos-containing products, automotive or ceeding’’ means any State proceeding with icity of this form of amphibole asbestos.’’. industrial parts or components, equipment, respect to a financially impaired or insol- (15) According to a November 2003 article improvements to real property, and any vent insurer or reinsurer including the liq- from the Journal Environmental Health Per- other material that contains asbestos in any uidation, rehabilitation, conservation, super- spectives titled, Radiographic Abnormalities physical or chemical form. vision, or ancillary receivership of an insurer and Exposure to Asbestos-Contaminated (3) ASBESTOS CLAIM.— under State law. Vermiculite in the Community of Libby, (A) IN GENERAL.—The term ‘‘asbestos (11) LAW.—The term ‘‘law’’ includes all Montana, USA, Libby residents who have claim’’ means any claim, premised on any law, judicial or administrative decisions, evidence of ‘‘no apparent exposure’’, i.e., did theory, allegation, or cause of action for rules, regulations, or any other principle or not work with asbestos, were not a family damages or other relief presented in a civil action having the effect of law. member of a former worker, etc., had a action or bankruptcy proceeding, directly, (12) PARTICIPANT.— greater rate of pleural abnormalities (6.7 per- indirectly, or derivatively arising out of, (A) IN GENERAL.—The term ‘‘participant’’ cent) than did those in control groups or based on, or related to, in whole or part, the means any person subject to the funding re- general populations found in other studies health effects of exposure to asbestos, in- quirements of title II, including— from other states (which ranged from 0.2 per- cluding loss of consortium, wrongful death, (i) any defendant participant subject to li- cent to 4.6 percent). ‘‘Given the ubiquitous and any derivative claim made by, or on be- ability for payments under subtitle A of that nature of vermiculite contamination in half of, any exposed person or any represent- title; Libby, along with historical evidence of ele- ative, spouse, parent, child, or other relative (ii) any insurer participant subject to a vated asbestos concentrations in the air, it of any exposed person. payment under subtitle B of that title; and would be difficult to find participants who (B) EXCLUSION.—The term does not in- (iii) any successor in interest of a partici- could be characterized as unexposed.’’. clude— pant. (16) Nothing in this Act is intended to in- (i) claims alleging damage or injury to tan- (B) EXCEPTION.— crease the Federal deficit or impose any bur- gible property; (i) IN GENERAL.—A defendant participant den on the taxpayer. The Office of Asbestos (ii) claims for benefits under a workers’ shall not include any person protected from Disease Compensation established under this compensation law or veterans’ benefits pro- any asbestos claim by reason of an injunc- Act shall be privately funded by annual pay- gram; tion entered in connection with a plan of re- ments from defendant participants that have (iii) claims arising under any govern- organization under chapter 11 of title 11, been subject to asbestos liability and their mental or private health, welfare, disability, United States Code, that has been confirmed insurers. Section 406(b) of this Act expressly death or compensation policy, program or by a duly entered order or judgment of a provides that nothing in this Act shall be plan; court that is no longer subject to any appeal construed to create any obligation of funding (iv) claims arising under any employment or judicial review, and the substantial con- from the United States or to require the contract or collective bargaining agreement; summation, as such term is defined in sec- United States to satisfy any claims if the (v) claims arising out of medical mal- tion 1101(2) of title 11, United States Code, of amounts in the Fund are inadequate. Any practice; or such plan of reorganization has occurred. borrowing by the Fund is limited to monies (vi) any claim arising under— (ii) APPLICABILITY.—Clause (i) shall not expected to be paid into the Fund, and the (I) the Americans with Disabilities Act of apply to a person who may be liable under Administrator shall have no fiscal authority 1990 (42 U.S.C. 12101 et seq.); subtitle A of title II based on prior asbestos beyond the amount of private money coming (II) title VII of the Civil Rights Act of 1964 expenditures related to asbestos claims that into the Fund. This Act provides the Admin- (42 U.S.C. 2000e et seq.); are not covered by an injunction described istrator with broad enforcement authority to (III) the Age Discrimination in Employ- under clause (i). pursue debts to the Fund owed by defendant ment Act of 1967 (29 U.S.C. 621 et seq.); (13) PERSON.—The term ‘‘person’’—

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(A) means an individual, trust, firm, joint (B) has been approved by a final judgment (2) REPORTING.—The Administrator shall stock company, partnership, association, in- of a United States district court before the report directly to the Assistant Secretary of surance company, reinsurance company, or date of enactment of this Act. Labor for the Employment Standards Ad- corporation; and (20) DEBTOR.—The term ‘‘debtor’’— ministration. (A) means— (B) does not include the United States, any (c) DUTIES OF ADMINISTRATOR.— (i) a person that is subject to a case pend- State or local government, or subdivision (1) IN GENERAL.—The Administrator shall ing under a chapter of title 11, United States thereof, including school districts and any be responsible for— general or special function governmental Code, on the date of enactment of this Act or at any time during the 1-year period imme- (A) processing claims for compensation for unit established under State law. asbestos-related injuries and paying com- (14) STATE.—The term ‘‘State’’ means any diately preceding that date, irrespective of whether the debtor’s case under that title pensation to eligible claimants under the State of the United States and also includes criteria and procedures established under the District of Columbia, Commonwealth of has been dismissed; and (ii) all of the direct or indirect majority- title I; Puerto Rico, the Northern Mariana Islands, owned subsidiaries of a person described (B) determining, levying, and collecting as- the Virgin Islands, Guam, American Samoa, under clause (i), regardless of whether any sessments on participants under title II; and any other territory or possession of the such majority-owned subsidiary has a case (C) appointing or contracting for the serv- United States or any political subdivision of pending under title 11, United States Code; ices of such personnel, making such expendi- any of the entities under this paragraph. and tures, and taking any other actions as may (15) SUBSTANTIALLY CONTINUES.—The term (B) shall not include an entity— be necessary and appropriate to carry out ‘‘substantially continues’’ means that the (i) subject to chapter 7 of title 11, United the responsibilities of the Office, including business operations have not been signifi- States Code, if a final decree closing the es- entering into cooperative agreements with cantly modified by the change in ownership. tate shall have been entered before the date other Federal agencies or State agencies and (16) SUCCESSOR IN INTEREST.—The term of enactment of this Act; or entering into contracts with nongovern- ‘‘successor in interest’’ means any person (ii) subject to chapter 11 of title 11, United mental entities; that, in 1 or a series of transactions, acquires States Code, if a plan of reorganization for (D) conducting such audits and additional all or substantially all of the assets and such entity shall have been confirmed by a oversight as necessary to assure the integ- properties (including, without limitation, duly entered order or judgment of a court rity of the program; under section 363(b) or 1123(b)(4) of title 11, that is no longer subject to any appeal or ju- (E) managing the Asbestos Injury Claims United States Code), and substantially con- dicial review, and the substantial con- Resolution Fund established under section tinues the business operations, of a partici- summation, as such term is defined in sec- 221, including— pant. The factors to be considered in deter- tion 1101(2) of title 11, United States Code, of (i) administering, in a fiduciary capacity, mining whether a person is a successor in in- such plan of reorganization has occurred. the assets of the Fund for the primary pur- terest include— (21) TRUST.—The term ‘‘trust’’ means any pose of providing benefits to asbestos claim- (A) retention of the same facilities or loca- trust, as described in sections 524(g)(2)(B)(i) ants and their beneficiaries; tion; or 524(h) of title 11, United States Code, or (ii) defraying the reasonable expenses of (B) retention of the same employees; established in conjunction with an order administering the Fund; (C) maintaining the same job under the issued under section 105 of title 11, United (iii) investing the assets of the Fund in ac- same working conditions; States Code, established or formed under the cordance with section 222(b); (D) retention of the same supervisory per- terms of a chapter 11 plan of reorganization, (iv) retaining advisers, managers, and sonnel; which in whole or in part provides compensa- custodians who possess the necessary facili- (E) continuity of assets; tion for asbestos claims. ties and expertise to provide for the skilled (F) production of the same product or offer TITLE I—ASBESTOS CLAIMS RESOLUTION and prudent management of the Fund, to as- of the same service; Subtitle A—Office of Asbestos Disease sist in the development, implementation and (G) retention of the same name; Compensation maintenance of the Fund’s investment poli- (H) maintenance of the same customer SEC. 101. ESTABLISHMENT OF OFFICE OF ASBES- cies and investment activities, and to pro- base; TOS DISEASE COMPENSATION. vide for the safekeeping and delivery of the (I) identity of stocks, stockholders, and di- (a) IN GENERAL.— Fund’s assets; and rectors between the asset seller and the pur- (1) ESTABLISHMENT.—There is established (v) borrowing amounts authorized by sec- chaser; or within the Department of Labor the Office of tion 221(b) on appropriate terms and condi- (J) whether the successor holds itself out Asbestos Disease Compensation (hereinafter tions, including pledging the assets of or as continuation of previous enterprise, but referred to in this Act as the ‘‘Office’’), payments to the Fund as collateral; expressly does not include whether the per- which shall be headed by an Administrator. (F) promulgating such rules, regulations, son actually knew of the liability of the par- (2) PURPOSE.—The purpose of the Office is and procedures as may be necessary and ap- ticipant under this Act. to provide timely, fair compensation, in the propriate to implement the provisions of this (17) VETERANS’ BENEFITS PROGRAM.—The amounts and under the terms specified in Act; term ‘‘veterans’ benefits program’’ means this Act, on a no-fault basis and in a non-ad- (G) making such expenditures as may be any program for benefits in connection with versarial manner, to individuals whose necessary and appropriate in the administra- military service administered by the Vet- health has been adversely affected by expo- tion of this Act; erans’ Administration under title 38, United sure to asbestos. (H) excluding evidence and disqualifying or (3) TERMINATION OF THE OFFICE.—The Office States Code. debarring any attorney, physician, provider of Asbestos Disease Compensation shall ter- (18) WORKERS’ COMPENSATION LAW.—The of medical or diagnostic services, including minate effective not later than 12 months term ‘‘workers’ compensation law’’— laboratories and others who provide evidence following certification by the Administrator (A) means a law respecting a program ad- in support of a claimant’s application for that the Fund has neither paid a claim in the ministered by a State or the United States compensation where the Administrator de- to provide benefits, funded by a responsible previous 12 months nor has debt obligations remaining to pay. termines that materially false, fraudulent, employer or its insurance carrier, for occu- or fictitious statements or practices have pational diseases or injuries or for disability (4) EXPENSES.—There shall be available from the Fund to the Administrator such been submitted or engaged in by such indi- or death caused by occupational diseases or sums as are necessary for any and all ex- viduals or entities; and injuries; penses associated with the Office of Asbestos (I) having all other powers incidental, nec- (B) includes the Longshore and Harbor Disease Compensation and necessary to essary, or appropriate to carrying out the Workers’ Compensation Act (33 U.S.C. 901 et carry out the purposes of this Act. Expenses functions of the Office. seq.) and chapter 81 of title 5, United States covered should include— (2) CERTAIN ENFORCEMENTS.—For each in- Code; and (A) management of the Fund; fraction relating to paragraph (1)(H), the Ad- (C) does not include the Act of April 22, (B) personnel salaries and expenses, includ- ministrator also may impose a civil penalty 1908 (45 U.S.C. 51 et seq.), commonly known ing retirement and similar benefits; not to exceed $10,000 on any person or entity as the Employers’ Liability Act, or damages (C) the sums necessary for conducting the found to have submitted or engaged in a ma- recovered by any employee in a liability ac- studies required under this Act; terially false, fraudulent, or fictitious state- tion against an employer. (D) all administrative and legal expenses; ment or practice under this Act. The Admin- (19) CLASS ACTION TRUST.—The term ‘‘class and istrator shall prescribe appropriate regula- action trust’’ means a trust or similar entity (E) any other sum that could be attrib- tions to implement paragraph (1)(H). established to hold assets for the payment of utable to the Fund. (3) SELECTION OF DEPUTY ADMINISTRA- asbestos claims asserted against a debtor or (b) APPOINTMENT OF ADMINISTRATOR.— TORS.—The Administrator shall select a Dep- participating defendant, under a settlement (1) IN GENERAL.—The Administrator of the uty Administrator for Claims Administra- that— Office of Asbestos Disease Compensation tion to carry out the Administrator’s respon- (A) is a settlement of class action claims shall be appointed by the President. The Ad- sibilities under this title and a Deputy Ad- under rule 23 of the Federal Rules of Civil ministrator shall serve for a term of 10 ministrator for Fund Management to carry Procedure; and years. out the Administrator’s responsibilities

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The Deputy Admin- related to asbestos litigation as consultants (1) publicize and provide information to po- istrators shall report directly to the Admin- or expert witnesses. tential claimants about the availability of istrator and shall be in the Senior Executive (b) DUTIES.—The Advisory Committee shall benefits for eligible claimants under this Service. advise the Administrator on— Act, and the procedures for filing claims and (d) EXPEDITIOUS DETERMINATIONS.—The Ad- (1) claims filing and claims processing pro- for obtaining assistance in filing claims; ministrator shall prescribe rules to expedite cedures; (2) provide assistance to potential claim- claims for asbestos claimants with terminal (2) claimant assistance programs; ants in preparing and submitting claims, in- circumstances in order to expedite the pay- (3) audit procedures and programs to en- cluding assistance in obtaining the docu- ment of such claims as soon as possible after sure the quality and integrity of the com- mentation necessary to support a claim and startup of the Fund. The Administrator shall pensation program; any other appropriate paralegal assistance; contract out the processing of such claims. (4) the development of a list of industries, (3) respond to inquiries from claimants and (e) AUDIT AND PERSONNEL REVIEW PROCE- occupations and time periods for which there potential claimants; DURES.—The Administrator shall establish is a presumption of substantial occupational (4) provide training with respect to the ap- audit and personnel review procedures for exposure to asbestos; plicable procedures for the preparation and evaluating the accuracy of eligibility rec- (5) recommended analyses or research that filing of claims to persons who provide as- ommendations of agency and contract per- should be conducted to evaluate past claims sistance or representation to claimants; and sonnel. and to project future claims under the pro- (5) provide for the establishment of a (f) APPLICATION OF FOIA.— gram; website where claimants may access all rel- (1) IN GENERAL.—Section 552 of title 5, (6) the annual report required to be sub- evant forms and information. United States Code (commonly referred to as mitted to Congress under section 405; and (b) RESOURCE CENTERS.—The claimant as- the Freedom of Information Act) shall apply (7) such other matters related to the imple- sistance program shall provide for the estab- to the Office of Asbestos Disease Compensa- mentation of this Act as the Administrator lishment of resource centers in areas where tion and the Asbestos Insurers Commission. considers appropriate. there are determined to be large concentra- (2) CONFIDENTIALITY OF FINANCIAL (c) OPERATION OF THE COMMITTEE.— tions of potential claimants. These centers RECORDS.— (1) Each member of the Advisory Com- shall be located, to the extent feasible, in fa- (A) IN GENERAL.—Any person may label mittee shall be appointed for a term of 10 cilities of the Department of Labor or other any record submitted under this section as a years. Federal agencies. (c) CONTRACTS.—The claimant assistance confidential commercial or financial record (2) Any member appointed to fill a vacancy program may be carried out in part through for the purpose of requesting exemption from occurring before the expiration of the term contracts with labor organizations, commu- disclosure under section 552(b)(4) of title 5, shall be appointed only for the remainder of nity-based organizations, and other entities United States Code. such term. (3) The Administrator shall designate a which represent or provide services to poten- (B) DUTIES OF ADMINISTRATOR AND CHAIR- tial claimants, except that such organiza- MAN OF THE ASBESTOS INSURERS COMMISSION.— Chairperson and Vice Chairperson from among members of the Advisory Committee tions may not have a financial interest in The Administrator and Chairman of the As- the outcome of claims filed with the Office. bestos Insurers Commission— appointed under subsection (a)(2)(B). (4) The Advisory Committee shall meet at (d) LEGAL ASSISTANCE.— (i) shall adopt procedures for— (1) IN GENERAL.—As part of the program es- (I) handling submitted records marked the call of the Chairperson or the majority of its members, and at a minimum shall meet tablished under subsection (a), the Adminis- confidential; and trator shall establish a legal assistance pro- (II) protecting from disclosure records they at least 4 times per year during the first 5 years of the asbestos compensation program, gram to provide assistance to asbestos determine to be confidential commercial or claimants concerning legal representation financial information exempt under section and at least 2 times per year thereafter. (5) The Administrator shall provide to the issues. 552(b)(4) of title 5, United States Code; and (2) LIST OF QUALIFIED ATTORNEYS.—As part (ii) may establish a pre-submission deter- Committee such information as is necessary and appropriate for the Committee to carry of the program, the Administrator shall mination process to protect from disclosure maintain a roster of qualified attorneys who records on reserves and asbestos-related li- out its responsibilities under this section. The Administrator may, upon request of the have agreed to provide pro bono services to abilities submitted by any defendant partici- asbestos claimants under rules established pant that is exempt under section 552(b)(4) of Advisory Committee, secure directly from any Federal, State, or local department or by the Administrator. The claimants shall title 5, United States Code. not be required to use the attorneys listed on (C) REVIEW OF COMPLAINTS.—Nothing in agency such information as may be nec- essary and appropriate to enable the Advi- such roster. this section shall supersede or preempt the (3) NOTICE.— de novo review of complaints filed under sec- sory Committee to carry out its duties under this section. Upon request of the Adminis- (A) NOTICE BY ADMINISTRATOR.—The Ad- tion 552(b)(4) of title 5, United States Code. ministrator shall provide asbestos claimants (3) CONFIDENTIALITY OF MEDICAL RECORDS.— trator, the head of such department or agen- cy shall furnish such information to the Ad- with notice of, and information relating to— Any claimant may designate any record sub- (i) pro bono services for legal assistance mitted under this section as a confidential visory Committee. (6) The Administrator shall provide the Ad- available to those claimants; and personnel or medical file for purposes of sec- (ii) any limitations on attorneys fees for tion 552 of title 5, United States Code. The visory Committee with such administrative support as is reasonably necessary to enable claims filed under this title. Administrator and the Chairman of the As- (B) NOTICE BY ATTORNEYS.—Before a person bestos Insurers Commission shall adopt pro- it to perform its functions. (d) EXPENSES.—Members of the Advisory becomes a client of an attorney with respect cedures for designating such records as con- to an asbestos claim, that attorney shall fidential. Committee, other than full-time employees of the United States, while attending meet- provide notice to that person of pro bono SEC. 102. ADVISORY COMMITTEE ON ASBESTOS ings of the Advisory Committee or while oth- services for legal assistance available for DISEASE COMPENSATION. erwise serving at the request of the Adminis- that claim. (a) ESTABLISHMENT.— trator, and while serving away from their (e) ATTORNEY’S FEES.— (1) IN GENERAL.—Not later than 120 days homes or regular places of business, shall be (1) LIMITATION.— after the date of enactment of this Act, the allowed travel and meal expenses, including (A) IN GENERAL.—Notwithstanding any Administrator shall establish an Advisory per diem in lieu of subsistence, as authorized contract, the representative of an individual Committee on Asbestos Disease Compensa- by section 5703 of title 5, United States Code, may not receive, for services rendered in tion (hereinafter the ‘‘Advisory Com- for individuals in the Government serving connection with the claim of an individual mittee’’). without pay. under the Fund, more than a reasonable at- (2) COMPOSITION AND APPOINTMENT.—The SEC. 103. MEDICAL ADVISORY COMMITTEE. torney’s fee. Advisory Committee shall be composed of 20 (a) IN GENERAL.—The Administrator shall (ii) CALCULATION OF REASONABLE FEE.—Any members, appointed by the President. establish a Medical Advisory Committee to fee obtained under clause (i) shall be cal- (3) QUALIFICATIONS.—All of the members provide expert advice regarding medical culated by multiplying a reasonable hourly described in paragraph (2) shall have exper- issues arising under the statute. rate by the number of hours reasonably ex- tise or experience relevant to the asbestos (b) QUALIFICATIONS.—None of the members pended on the claim of the individual. compensation program, including experience of the Medical Advisory Committee shall be (iii) REQUIREMENTS FOR COMPENSATION.—A or expertise in diagnosing asbestos-related individuals who, for each of the 5 years be- representative of an individual shall not be diseases and conditions, assessing asbestos fore their appointments, earned more than 15 eligible to receive a fee under clause (i), un- exposure and health risks, filing asbestos percent of their income by serving in mat- less— claims, administering a compensation or in- ters related to asbestos litigation as consult- (I) such representative submits to the Ad- surance program, or as actuaries, auditors, ants or expert witnesses. ministrator detailed contemporaneous bill- or investment managers. None of the mem- SEC. 104. CLAIMANT ASSISTANCE. ing records for any work actually performed bers described in paragraph (2)(B) shall be in- (a) ESTABLISHMENT.—Not later than 120 in the course of representation of an indi- dividuals who, for each of the 5 years before days after the enactment of this Act, the Ad- vidual; and their appointments, earned more than 15 per- ministrator shall establish a comprehensive (II) the Administrator finds, based on bill- cent of their income by serving in matters asbestos claimant assistance program to— ing records submitted by the representative

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Act; and (5) AUTHORIZATION FOR CONTRACTS WITH (2) PENALTY.—Any representative of an as- (ii) during the 60-day period following that CLAIMS FACILITIES.—The Administrator may bestos claimant who violates this subsection date of enactment to carry out such respon- enter into contracts with a claims facility shall be fined not more than the greater of— sibilities. for the processing of claims (except for ex- (A) $5,000; or (2) INTERIM REGULATIONS.—Not later than ceptional medical claims) in accordance with (B) twice the amount received by the rep- 90 days after the date of enactment of this this title. resentative for services rendered in connec- Act, the Administrator shall promulgate in- (d) PRIORITIZATION OF CLAIMS.—The Admin- tion with each such violation. terim regulations and procedures for the istrator shall, in final regulations promul- SEC. 105. PHYSICIANS PANELS. processing of claims under this title and the gated under section 101(c), designate cat- (a) APPOINTMENT.—The Administrator operation of the Fund under title II, includ- egories of claims to be handled on an expe- shall, in accordance with section 3109 of title ing procedures for the expediting of terminal dited basis. The Administrator shall 5, United States Code, appoint physicians health claims, and processing of claims prioritize the processing and payment of with experience and competency in diag- through the claims facility. health claims involving claimants with the most serious health claims. The Adminis- nosing asbestos-related diseases to be avail- (b) INTERIM PERSONNEL AND CONTRACTING.— trator shall also prioritize claims from able to serve on Physicians Panels, as nec- The Secretary of Labor and the Assistant claimants who face extreme financial hard- essary to carry out this Act. Secretary of Labor for the Employment Standards Administration shall make avail- ship. (b) FORMATION OF PANELS.— able to the Administrator on a temporary (e) INTERIM ADMINISTRATOR.—Until an Ad- (1) IN GENERAL.—The Administrator shall ministrator is appointed and confirmed periodically determine— basis such personnel and other resources as may be necessary to facilitate the expedi- under section 101(b), the responsibilities of (A) the number of Physicians Panels nec- tious startup of the program. The Adminis- the Administrator under this Act shall be essary for the efficient conduct of the med- trator may in addition contract with individ- performed by the Assistant Secretary of ical review process under section 121; uals or entities having relevant experience Labor for the Employment Standards Ad- (B) the number of Physicians Panels nec- to assist in the expeditious startup of the ministration, who shall have all the author- essary for the efficient conduct of the excep- program including entering into contracts ity conferred by this Act on the Adminis- tional medical claims process under section on an expedited or sole source basis during trator and who shall be deemed to be the Ad- 121; and the startup period for the purpose of proc- ministrator for purposes of this Act. Before (C) the particular expertise necessary for essing claims or providing financial analysis final regulations being promulgated relating each panel. or assistance. Such relevant experience shall to claims processing, the Interim Adminis- (2) EXPERTISE.—Each Physicians Panel include, but not be limited to, experience trator may prioritize claims processing, shall be composed of members having the with the review of workers’ compensation, without regard to the time requirements pre- particular expertise determined necessary by occupational disease, or similar claims and scribed in subtitle B of this title, based on the Administrator, randomly selected from with financial matters relevant to the oper- severity of illness and likelihood that expo- among the physicians appointed under sub- ation of the program. sure to asbestos was a substantial contrib- section (a) having such expertise. (c) TERMINAL HEALTH CLAIMS.— uting factor for the illness in question. (3) PANEL MEMBERS.—Except as provided (1) IN GENERAL.—The Administrator shall (f) STAY OF CLAIMS.— under subparagraph (B), each Physicians develop procedures, as provided in section (1) STAY OF CLAIMS.—Notwithstanding any Panel shall consist of 3 physicians, 2 of 106(f), to provide for an expedited process to other provision of this Act, any asbestos whom shall be designated to participate in categorize, evaluate, and pay terminal claim pending on the date of enactment of each case submitted to the Physicians Panel, health claims. Such procedures, as provided this Act is stayed. and the third of whom shall be consulted in in section 106(f), shall include, pending pro- (2) TERMINAL HEALTH CLAIMS.— the event of disagreement. mulgation of final regulations, adoption of (A) PROCEDURES FOR SETTLEMENT OF TER- (c) QUALIFICATIONS.—To be eligible to serve interim regulations as needed for processing MINAL HEALTH CLAIMS.— on a Physicians Panel under subsection (a), a of terminal health claims. (i) IN GENERAL.—Any person that has filed person shall be— (2) ELIGIBLE TERMINAL HEALTH CLAIMS.—A a terminal health claim, as provided under (1) a physician licensed in any State; claim shall qualify for treatment as a ter- subsection (c)(2), seeking a judgment or (2) board-certified in pulmonary medicine, minal health claim if— order for monetary damages in any Federal occupational medicine, internal medicine, (A) the claimant is living and provides a or State court before the date of the enact- oncology, or pathology; and diagnosis of mesothelioma meeting the re- ment of this Act, shall seek a settlement in (3) an individual who, for each of the 5 quirements of section 121(d)(9); accordance with this paragraph. Any person years before and during his or her appoint- (B) the claimant is living and provides a with a terminal health claim, as provided ment to a Physicians Panel, has earned not credible declaration or affidavit, from a diag- under subsection (c)(2), that arises after such more than 15 percent of his or her income as nosing physician who has examined the date of enactment shall seek a settlement in an employee of a participating defendant or claimant within 120 days before the date of accordance with this paragraph. insurer or a law firm representing any party such declaration or affidavit, that the physi- (ii) FILING.— in asbestos litigation or as a consultant or cian has diagnosed the claimant as being ter- (I) IN GENERAL.—At any time before the expert witness in matters related to asbestos minally ill from an asbestos-related illness Fund or claims facility is certified as oper- litigation. and having a life expectancy of less than 1 ational and paying terminal health claims at (d) DUTIES.—Members of a Physicians year due to such asbestos-related illness; or a reasonable rate, any person with a ter- Panel shall— (C) the claimant is the spouse or child of minal health claim as described under clause (1) make such medical determinations as an eligible terminal health claimant who— (i) shall file a notice of their intent to seek are required to be made by Physicians Pan- (i) was living when the claim was filed with a settlement or shall file their exigent els under section 121; and the Fund, or if before the implementation of health claim with the Administrator or (2) perform such other functions as re- interim regulations for the filing of claims claims facility. Filing of an exigent health quired under this Act. with the Fund, on the date of enactment of claim with the Administrator or claims fa- (e) COMPENSATION.—Notwithstanding any this Act; cility may serve as notice of intent to seek limitation otherwise established under sec- (ii) has since died from a malignant disease a settlement. tion 3109 of title 5, United States Code, the or condition; and (II) EXCEPTION.—Any person who seeks Administrator shall be authorized to pay (iii) has not received compensation from compensation for an exigent health claim members of a Physician Panel such com- the Fund for the disease or condition for from a trust in accordance with section 402(f) pensation as is reasonably necessary to ob- which the claim was filed. shall not be eligible to seek a settlement or tain their services. (3) ADDITIONAL TERMINAL HEALTH CLAIMS.— settlement offer under this paragraph. (f) FEDERAL ADVISORY COMMITTEE ACT.—A The Administrator may, in final regulations (iii) TERMINAL HEALTH CLAIM INFORMA- Physicians Panel established under this sec- promulgated under section 101(c), designate TION.—To file a terminal health claim, each tion shall not be subject to the Federal Advi- additional categories of claims that qualify individual shall provide all of the following sory Committee Act (5 U.S.C. App. 2). as terminal health claims under this sub- information: SEC. 106. PROGRAM STARTUP. section except that exceptional medical (I) The amount received or entitled to be (a) IMMEDIATE STARTUP.— claims may not proceed. received as a result of all collateral source (1) IN GENERAL.—Subject to section 101(d), (4) CLAIMS FACILITY.—To facilitate the compensation under section 134, and copies the Administrator may— prompt payment of terminal health claims of all settlement agreements and related (A) start receiving, reviewing, and deciding prior to the Fund being certified as oper- documents sufficient to show the accuracy of claims immediately upon the date of enact- ational, the Administrator shall contract that amount. ment of this Act; and with a claims facility, which applying the (II) A description of any claims for com- (B) reimburse the Department of Labor medical criteria of section 121, shall process pensation for an asbestos related injury or from the Fund for any expense incurred— and pay claims in accordnace with section disease filed by the claimant with any trust

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or class action trust, and the status or dis- (III) REQUIREMENTS NOT MET.—If the re- claimant shall accept such settlement offer position or any such claims. quirements under clause (iii) are not met, in writing. (III) All information that the claimant the claimant shall have 30 days to perfect (xii) PAYMENT SCHEDULE.— would be required to provide to the Adminis- the claim. If the claimant fails to perfect the (I) MESOTHELIOMA CLAIMANTS.—For meso- trator in support of a claim under sections claim within that 30-day period or the Ad- thelioma claimants— 113(c) and 121. ministrator or claims facility determines (aa) an initial payment of 50 percent shall (IV) A certification by the claimant that that the claim does not meet the require- be made within 30 days after the date the the information provided is true and com- ments of a terminal health claim, the claim settlement is accepted and the second and plete. The certification provided under this shall not be eligible to proceed under this final payment shall be made 6 months after subclause shall be subject to the same pen- paragraph. A claimant may appeal any deci- date the settlement is accepted; or alties for false or misleading statements that sion issued by a claims facility with the Ad- (bb) if the Administrator determines that would be applicable with regard to informa- ministrator in accordance with section 114. the payment schedule would impose a severe tion provided to the Administrator or claims (vii) FAILURE TO CERTIFY.—If the Adminis- financial hardship on the Fund, or if the facility in support of a claim. trator or claims facility is unable to process court determines that the settlement offer (V) For terminal health claims arising the claim and does not make a determina- would impose a severe financial hardship on after the date of enactment of this Act, the tion regarding the certification of the claim the participant, the payments may be ex- claimant shall identify each defendant that as required under clause (vi), the Adminis- tended 50 percent in 6 months and 50 percent would be an appropriate defendant in a civil trator or claims facility shall within 10 days 11 months after the date the settlement offer action seeking damages for the asbestos after the end of the 60-day period referred to is accepted. claim of the claimant. Identification of all under clause (vi)(I) provide notice of the fail- (II) OTHER TERMINAL CLAIMANTS.—For potential participants shall be made in good ure to act to the claimant and the defend- other terminal claimants, as defined under faith by the claimant. ants in the pending Federal or State court section 106(c)(2)(B) and (C)— (iv) TIMING.—A claimant who has filed a action or the defendants identified under (aa) the initial payment of 50 percent shall notice of their intent to seek a settlement clause (iii)(IV). If the Administrator or under clause (ii) shall within 60 days after be made within 6 months after the date the claims facility fails to provide such notice filing notice provide to the Administrator or settlement is accepted and the second and claims facility the information required within 10 days, the claimant may elect to final payment shall be made 12 months after under clause (iii). If a claimant has filed an provide the notice to the affected defendants date the settlement is accepted; or exigent health claim under clause (ii) the to prompt a settlement offer. The Adminis- (bb) if the Administrator determines that Administrator shall provide all affected de- trator or claims facility shall list all ter- the payment schedule would impose a severe fendants the information required under minal health claims for which notice has financial hardship on the Fund, or if the clause (iii). been provided under this clause on the court determines that the settlement offer (v) WEBSITE.— website established under clause (v). would impose a severe financial hardship on (I) POSTING.—The Administrator or claims (viii) FAILURE TO PAY.—If the Adminis- the participants, the payments may be ex- facility shall post the information described trator or claims facility does not pay the tended 50 percent within 1 year after the in subclause (II) to a secure website, acces- award as required under clause (xiii), the Ad- date the settlement offer is accepted and 50 sible on a passcode-protected basis to par- ministrator shall refer the certified claim percent in 2 years after date the settlement ticipants. within 10 days as a certified terminal health offer is accepted. (II) REQUIRED INFORMATION.—The website claim to the defendants in the pending Fed- (III) RELEASE.—Once a claimant has re- established under subclause (I) shall contain eral and State court action or to the poten- ceived final payment of the accepted settle- a listing of— tial defendants identified under clause ment offer, and penalty payment if applica- (aa) each claimant that has filed a notice (iii)(IV) for terminal claims arising after the ble, the claimant shall release any out- of intent to seek a settlement or claim under date of enactment of this Act. The Adminis- standing asbestos claims. this clause; trator or claims facility shall list all ter- (xiii) RECOVERY OF COSTS.— (bb) the name of such claimant; and minal health claims for which notice has (I) IN GENERAL.—Any participant whose (cc) if applicable— been provided under this clause on the settlement offer is accepted may recover the (AA) the name of the court where such website established under clause (v). cost of such settlement by deducting from claim was filed; (ix) SETTLEMENT OFFER.—Any participant the participant’s next and subsequent con- (BB) the case or docket number of such or participants may, within 30 days after re- tributions to the Fund the full amount of the claim; and ceipt of such notice as provided under clause payment made by such participant to the (CC) the date such claim was filed. (vii) or (viii), file and serve on all parties and terminal health claimant, unless the Admin- (III) PROHIBITIONS.—The website estab- the Administrator a good faith settlement istrator finds, on the basis of clear and con- lished under subclause (I) shall not contain offer in an aggregate amount not to exceed vincing evidence, that the participant’s offer specific health or medical information or so- the total amount to which the claimant is not in good faith. Any such payment shall cial security numbers. would receive under section 131. If the aggre- be considered a payment to the Fund for pur- (IV) PARTICIPANT ACCESS.—A participant’s gate amount offered by all participants ex- poses of section 404(e)(1) and in response to access to the website established under sub- ceeds the award determined by the Adminis- the payment obligations imposed on partici- trator, all offers shall be deemed reduced clause (I) shall be limited on a need to know pants in title II. basis, and participants shall not disclose or pro-rata until the aggregate amount equals (II) REIMBURSEMENT.—Notwithstanding sell data, or retain data for purposes other the award amount. An acceptance of such subclause (I), if the deductions from the par- than paying an asbestos claim. settlement offer for claims pending before ticipant’s next and subsequent contributions (V) VIOLATIONS.—Any person or other enti- the date of enactment of this Act shall be to the Fund do not fully recover the cost of ty that violates any provision of this clause, subject to approval by the trial judge or au- such payments on or before its third annual including by breaching any data posted on thorized magistrate in the court where the contribution to the Fund, the Fund shall re- the website, shall be subject to an injunc- claim is pending. The court shall approve imburse such participant for such remaining tion, or civil penalties, or both. any such accepted offer within 20 days after cost not later than 6 months after the date of (vi) ADMINISTRATOR OR CLAIMS FACILITY a request, unless there is evidence of bad the third scheduled Fund contribution. CERTIFICATION OF SETTLEMENT.— faith or fraud. No court approval is nec- (4) RESERVATION OF RIGHTS.—Participation (I) DETERMINATION.—Within 60 days after essary if the terminal health claim was cer- the information under clause (iii) is pro- tified by the Administrator or claims facil- in the offer and settlement process under vided, the Administrator or claims facility ity under clause (vi). this subsection shall not affect or prejudice any rights or defenses a party might have in shall determine whether or not the claim (x) ACCEPTANCE OR REJECTION.—Within 20 meets the requirements of a terminal health days after receipt of the settlement offer, or any litigation. claim. the amended settlement offer, the claimant SEC. 107. AUTHORITY OF THE ADMINISTRATOR. (II) REQUIREMENTS MET.—If the Adminis- shall either accept or reject such offer in trator or claims facility determines that the writing. If the amount of the settlement The Administrator, on any matter within claim meets the requirements of a terminal offer made by the Administrator, claims fa- the jurisdiction of the Administrator under health claim, the Administrator or claims cility, or participants equals 100 percent of this Act, may— facility shall immediately— what the claimant would receive under the (1) issue subpoenas for and compel the at- (aa) issue and serve on all parties a certifi- Fund, the claimant shall accept such settle- tendance of witnesses within a radius of 200 cation of eligibility of such claim; ment in writing. miles; (bb) determine the value of such claim (xi) OPPORTUNITY TO CURE.—If the settle- (2) administer oaths; under the Fund by subtracting from the ment offer is rejected for being less than (3) examine witnesses; amount in section 131 the total amount of what the claimant would receive under the (4) require the production of books, papers, collateral source compensation received by Fund, the participants shall have 10 business documents, and other evidence; and the claimant; and days to make an amended offer. If the (5) request assistance from other Federal (cc) pay the award of compensation to the amended offer equals 100 percent of what the agencies with the performance of the duties claimant under clause (xiii). claimant would receive under the Fund, the of the Administrator under this Act.

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00102 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1237 Subtitle B—Asbestos Disease Compensation teria for the disease level for which the support the assertion of nonsmoking or ex- Procedures claimant is seeking compensation. smoking, including relevant medical records. SEC. 111. ESSENTIAL ELEMENTS OF ELIGIBLE (3) CLAIMS FOR ADDITIONAL AWARDS.— (d) DATE OF FILING.—A claim shall be con- CLAIM. (A) NON-MALIGNANT DISEASES.—If a claim- sidered to be filed on the date that the To be eligible for an award under this Act ant has previously filed a timely initial claimant mails the claim to the Office, as de- for an asbestos-related disease or injury, an claim for compensation for any non-malig- termined by postmark, or on the date that individual shall— nant disease level, there shall be no limita- the claim is received by the Office, which- (1) file a claim in a timely manner in ac- tions period applicable to the filing of claims ever is the earliest determinable date. cordance with sections 106(f)(2) and 113; and by the claimant for additional awards for (e) INCOMPLETE CLAIMS.—If a claim filed (2) prove, by a preponderance of the evi- higher disease levels based on the progres- under subsection (a) is incomplete, the Ad- dence, that the claimant suffers from an eli- sion of the non-malignant disease. ministrator shall notify the claimant of the gible disease or condition, as demonstrated (B) MALIGNANT DISEASES.—Regardless of information necessary to complete the claim by evidence that meets the requirements es- whether the claimant has previously filed a and inform the claimant of such services as tablished under subtitle C. claim for compensation for any other disease may be available through the Claimant As- level, a claim for compensation for a malig- SEC. 112. GENERAL RULE CONCERNING NO- sistance Program established under section FAULT COMPENSATION. nant disease level shall be filed within 2 104 to assist the claimant in completing the An asbestos claimant shall not be required years after the claimant first obtained a claim. Any time periods for the processing of to demonstrate that the asbestos-related in- medical diagnosis and medical test results the claim shall be suspended until such time jury for which the claim is being made re- sufficient to satisfy the criteria for the ma- as the claimant submits the information sulted from the negligence or other fault of lignant disease level for which the claimant necessary to complete the claim. If such in- any other person. is seeking compensation. formation is not received within 1 year after (4) EFFECT ON PENDING CLAIMS.— SEC. 113. FILING OF CLAIMS. the date of such notification, the claim shall (A) IN GENERAL.—If, on the date of enact- be dismissed. (a) WHO MAY SUBMIT.— ment of this Act, an asbestos claimant has (1) IN GENERAL.—Any individual who has any timely filed asbestos claim that is pre- SEC. 114. ELIGIBILITY DETERMINATIONS AND CLAIM AWARDS. suffered from a disease or condition that is empted under section 403(e), such claimant (a) IN GENERAL.— believed to meet the requirements estab- shall file a claim under this section within 2 (1) REVIEW OF CLAIMS.—The Administrator lished under subtitle C (or the personal rep- years after such date of enactment, or any resentative of the individual, if the indi- claim relating to that injury, and any other shall, in accordance with this section, deter- vidual is deceased or incompetent) may file a asbestos claim related to that injury shall be mine whether each claim filed under the claim with the Office for an award with re- extinguished, and recovery on any such Fund or claims facility satisfies the require- spect to such injury. claim shall be prohibited. ments for eligibility for an award under this Act and, if so, the value of the award. In (2) DEFINITION.—In this Act, the term ‘‘per- (B) SPECIAL RULE.—For purposes of this sonal representative’’ shall have the same paragraph, a claim shall not be treated as making such determinations, the Adminis- meaning as that term is defined in section pending with a trust established under title trator shall consider the claim presented by 104.4 of title 28 of the Code of Federal Regu- 11, United States Code, solely because a the claimant, the factual and medical evi- lations, as in effect on December 31, 2004. claimant whose claim was previously com- dence submitted by the claimant in support (3) LIMITATION.—A claim may not be filed pensated by the trust has or alleges— of the claim, the medical determinations of by any person seeking contribution or in- (i) a non-contingent right to the payment any Physicians Panel to which a claim is re- demnity. of future installments of a fixed award; or ferred under section 121, and the results of (4) EFFECT OF MULTIPLE INJURIES.— (ii) a contingent right to recover some ad- such investigation as the Administrator may (A) IN GENERAL.—A claimant who receives ditional amount from the trust on the occur- deem necessary to determine whether the an award for an eligible disease or condition rence of a future event, such as the reevalua- claim satisfies the criteria for eligibility es- shall not be precluded from submitting tion of the trust’s funding adequacy or pro- tablished by this Act. claims for and receiving additional awards jected claims experience. (2) ADDITIONAL EVIDENCE.—The Adminis- under this title for any higher disease level (c) REQUIRED INFORMATION.—A claim filed trator may request the submission of med- for which the claimant becomes eligible, sub- under subsection (a) shall be in such form, ical evidence in addition to the minimum re- ject to appropriate setoffs as provided under and contain such information in such detail, quirements of section 113(c) if necessary or section 134. as the Administrator shall by regulation pre- appropriate to make a determination of eli- (B) LIBBY, MONTANA CLAIMS.— scribe. At a minimum, a claim shall in- gibility for an award, in which case the cost (i) IN GENERAL.—Notwithstanding subpara- clude— of obtaining such additional information or graph (A), if a Libby, Montana claimant (1) the name, social security number, gen- testing shall be borne by the Office. worsens in condition, as measured by pul- der, date of birth, and, if applicable, date of (b) PROPOSED DECISIONS.—Not later than 90 monary function tests, such that a claimant death of the claimant; days after the filing of a claim, the Adminis- qualifies for a higher nonmalignant level, (2) information relating to the identity of trator shall provide to the claimant (and the the claimant shall be eligible for an addi- dependents and beneficiaries of the claimant; claimant’s representative) a proposed deci- tional award, at the appropriate level, offset (3) an employment history sufficient to es- sion accepting or rejecting the claim in by any award previously paid under this Act, tablish required asbestos exposure, accom- whole or in part and specifying the amount such that a claimant would qualify for Level panied by social security or other payment of the proposed award, if any. The proposed IV if the claimant satisfies section 121(f)(8), records or a signed release permitting access decision shall be in writing, shall contain and would qualify for Level V if the claimant to such records; findings of fact and conclusions of law, and provides— (4) a description of the asbestos exposure of shall contain an explanation of the proce- (I) a diagnosis of bilateral asbestos related the claimant, including, to the extent dure for obtaining review of the proposed de- nonmalignant disease; known, information on the site, or location cision. (II) evidence of TLC or FVC less than 60 of exposure, and duration and intensity of (d) REVIEW OF PROPOSED DECISIONS.— percent; and exposure; (1) RIGHT TO HEARING.— (III) supporting medical documentation es- (5) a description of the tobacco product use (A) IN GENERAL.—Any claimant not satis- tablishing asbestos exposure as a substantial history of the claimant, including frequency fied with a proposed decision of the Adminis- contributing factor in causing the pul- and duration; trator under subsection (b) shall be entitled, monary condition in question, and excluding (6) an identification and description of the on written request made within 90 days after more likely causes of that pulmonary condi- asbestos-related diseases or conditions of the the date of the issuance of the decision, to a tion. claimant, accompanied by a written report hearing on the claim of that claimant before (ii) SUBSEQUENT MALIGNANT DISEASE.—If a by the claimant’s physician with medical di- a representative of the Administrator. At Libby, Montana, claimant develops malig- agnoses and x-ray films, and other test re- the hearing, the claimant shall be entitled to nant disease, such that the claimant quali- sults necessary to establish eligibility for an present oral evidence and written testimony fies for Level VI, VII, VIII, or IX, subpara- award under this Act; in further support of that claim. graph (A) shall apply. (7) a description of any prior or pending (B) CONDUCT OF HEARING.—When prac- (b) STATUTE OF LIMITATIONS.— civil action or other claim brought by the ticable, the hearing will be set at a time and (1) IN GENERAL.—If a claim is not filed with claimant for asbestos-related injury or any place convenient for the claimant. In con- the Office within the limitations period spec- other pulmonary, parenchymal, or pleural ducting the hearing, the representative of ified in this subsection for that category of injury, including an identification of any re- the Administrator shall not be bound by claim, such claim shall be extinguished, and covery of compensation or damages through common law or statutory rules of evidence, any recovery thereon shall be prohibited. settlement, judgment, or otherwise; and by technical or formal rules of procedure, or (2) INITIAL CLAIMS.—An initial claim for an (8) for any claimant who asserts that he or by section 554 of title 5, United States Code, award under this Act shall be filed within 2 she is a nonsmoker or an ex-smoker, as de- except as provided by this Act, but shall con- years after the date on which the claimant fined in section 131, for purposes of an award duct the hearing in such manner as to best first received a medical diagnosis and med- under Malignant Level VI, Malignant Level ascertain the rights of the claimant. For this ical test results sufficient to satisfy the cri- VII, or Malignant Level VIII, evidence to purpose, the representative shall receive

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00103 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1238 CONGRESSIONAL RECORD — SENATE February 14, 2006 such relevant evidence as the claimant ad- ance with the methods developed under para- ers for purposes of an award under Malignant duces and such other evidence as the rep- graph (1) demonstrates that the medical evi- Level VI, VII, or VIII, or as an exceptional resentative determines necessary or useful in dence submitted by a specific physician, medical claim, the cost of which shall be evaluating the claim. medical facility or attorney or law firm is paid by the Fund. (C) REQUEST FOR SUBPOENAS.— not consistent with prevailing medical prac- (4) PENALTY FOR FALSE STATEMENTS.—Any (i) IN GENERAL.—A claimant may request a tices or the applicable requirements of this false information submitted under this sub- subpoena but the decision to grant or deny Act, any medical evidence from such physi- section shall be subject to criminal prosecu- such a request is within the discretion of the cian, facility or attorney or law firm shall be tion or civil penalties as provided under sec- representative of the Administrator. The unacceptable for purposes of establishing eli- tion 1348 of title 18, United States Code (as representative may issue subpoenas for the gibility for an award under this Act. added by this Act) and section 101(c)(2). attendance and testimony of witnesses, and (B) NOTIFICATION.—Upon a determination (d) PULMONARY FUNCTION TESTING.—The for the production of books, records, cor- by the Administrator under subparagraph Administrator shall develop auditing proce- respondence, papers, or other relevant docu- (A), the Administrator shall notify the phy- dures for pulmonary function test results ments. Subpoenas are issued for documents sician or medical facility involved of the re- submitted as part of a claim, to ensure that only if such documents are relevant and can- sults of the audit. Such physician or facility such tests are conducted in accordance with not be obtained by other means, and for wit- shall have a right to appeal such determina- American Thoracic Society Criteria, as de- nesses only where oral testimony is the best tion under procedures issued by the Adminis- fined under section 121(a)(13). way to ascertain the facts. trator. Subtitle C—Medical Criteria (ii) REQUEST.—A claimant may request a (b) REVIEW OF CERTIFIED B-READERS.— SEC. 121. MEDICAL CRITERIA REQUIREMENTS. subpoena only as part of the hearing process. (1) IN GENERAL.—The Administrator shall (a) DEFINITIONS.—In this section, the fol- To request a subpoena, the requester shall— prescribe procedures to randomly evaluate lowing definitions shall apply: (I) submit the request in writing and send the x-rays submitted in support of a statis- (1) ASBESTOSIS DETERMINED BY PATHOL- it to the representative as early as possible, tically significant number of claims by inde- OGY.—The term ‘‘asbestosis determined by but no later than 30 days after the date of pendent certified B-readers, the cost of pathology’’ means indications of asbestosis the original hearing request; and which shall be paid by the Fund. based on the pathological grading system for (II) explain why the testimony or evidence (2) DISAGREEMENT.—If an independent cer- asbestosis described in the Special Issues of is directly relevant to the issues at hand, tified B-reader assigned under paragraph (1) the Archives of Pathology and Laboratory and a subpoena is the best method or oppor- disagrees with the quality grading or ILO Medicine, ‘‘Asbestos-associated Diseases’’, tunity to obtain such evidence because there level assigned to an x-ray submitted in sup- Vol. 106, No. 11, App. 3 (October 8, 1982). are no other means by which the documents port of a claim, the Administrator shall re- (2) BILATERAL ASBESTOS-RELATED NON- or testimony could have been obtained. quire a review of such x-rays by a second MALIGNANT DISEASE.—The term ‘‘bilateral as- (iii) FEES AND MILEAGE.—Any person re- independent certified B-reader. bestos-related nonmalignant disease’’ means quired by such subpoena to attend as a wit- (3) EFFECT ON CLAIM.—If neither certified a diagnosis of bilateral asbestos-related non- ness shall be allowed and paid the same fees B-reader under paragraph (2) agrees with the malignant disease based on— and mileage as are paid witnesses in the dis- quality grading and the ILO grade level as- (A) an x-ray reading of 1/0 or higher based trict courts of the United States. Such fees signed to an x-ray as part of the claim, the on the ILO grade scale; and mileage shall be paid from the Fund. Administrator shall take into account the (B) bilateral pleural plaques; (2) REVIEW OF WRITTEN RECORD.—In lieu of findings of the 2 independent B readers in (C) bilateral pleural thickening; or a hearing under paragraph (1), any claimant making the determination on such claim. (D) bilateral pleural calcification. not satisfied with a proposed decision of the (4) CERTIFIED B-READERS.—The Adminis- (3) BILATERAL PLEURAL DISEASE OF B2.—The Administrator shall have the option, on trator shall maintain a list of a minimum of term ‘‘bilateral pleural disease of B2’’ means written request made within 90 days after 50 certified B-readers eligible to participate a chest wall pleural thickening or plaque the date of the issuance of the decision, of in the independent reviews, chosen from all with a maximum width of at least 5 millime- obtaining a review of the written record by a certified B-readers. When an x-ray is sent for ters and a total length of at least 1⁄4 of the representative of the Administrator. If such independent review, the Administrator shall projection of the lateral chest wall. review is requested, the claimant shall be af- choose the certified B-reader at random from (4) CERTIFIED B-READER.—The term ‘‘cer- forded an opportunity to submit any written that list. tified B-reader’’ means an individual who is evidence or argument which the claimant be- (c) SMOKING ASSESSMENT.— certified by the National Institute of Occu- lieves relevant. (1) IN GENERAL.— pational Safety and Health and whose cer- (e) FINAL DECISIONS.— (A) RECORDS AND DOCUMENTS.—To aid in tification by the National Institute of Occu- (1) IN GENERAL.—If the period of time for the assessment of the accuracy of claimant pational Safety and Health is up to date. requesting review of the proposed decision representations as to their smoking status (5) DIFFUSE PLEURAL THICKENING.—The expires and no request has been filed, or if for purposes of determining eligibility and term ‘‘diffuse pleural thickening’’ means the claimant waives any objections to the amount of award under Malignant Level VI, blunting of either costophrenic angle and bi- proposed decision, the Administrator shall Malignant Level VII, or Malignant Level lateral pleural plaque or bilateral pleural issue a final decision. If such decision mate- VIII, and exceptional medical claims, the thickening. rially differs from the proposed decision, the Administrator shall have the authority to (7) FEV1.—The term ‘‘FEV1’’ means forced claimant shall be entitled to review of the obtain relevant records and documents, in- expiratory volume (1 second), which is the decision under subsection (d). cluding— maximal volume of air expelled in 1 second (2) TIME AND CONTENT.—If the claimant re- (i) records of past medical treatment and during performance of the spirometric test quests review of all or part of the proposed evaluation; for forced vital capacity. decision the Administrator shall issue a final (ii) affidavits of appropriate individuals; (8) FVC.—The term ‘‘FVC’’ means forced decision on the claim not later than 180 days (iii) applications for insurance and sup- vital capacity, which is the maximal volume after the request for review is received, if the porting materials; and of air expired with a maximally forced effort claimant requests a hearing, or not later (iv) employer records of medical examina- from a position of maximal inspiration. than 90 days after the request for review is tions. (9) ILO GRADE.—The term ‘‘ILO grade’’ received, if the claimant requests review of (B) CONSENT.—The claimant shall provide means the radiological ratings for the pres- the written record. Such decision shall be in consent for the Administrator to obtain such ence of lung changes as determined from a writing and contain findings of fact and con- records and documents where required. chest x-ray, all as established from time to clusions of law. (2) REVIEW.—The frequency of review of time by the International Labor Organiza- (f) REPRESENTATION.—A claimant may au- records and documents submitted under tion. thorize an attorney or other individual to paragraph (1)(A) shall be at the discretion of (10) LOWER LIMITS OF NORMAL.—The term represent him or her in any proceeding under the Administrator, but shall address at least ‘‘lower limits of normal’’ means the fifth this Act. 5 percent of the claimants asserting status percentile of healthy populations as defined SEC. 115. AUDITING PROCEDURES. as nonsmokers or ex-smokers. in the American Thoracic Society statement (a) IN GENERAL.— (3) CONSENT.— on lung function testing (Amer. Rev. Resp. (1) DEVELOPMENT.—The Administrator (A) IN GENERAL.—The Administrator may Disease 1991, 144:1202–1218) and any future re- shall develop methods for auditing and eval- require the performance of blood tests or any vision of the same statement. uating the medical and exposure evidence other appropriate medical test, where claim- (11) NONSMOKER.—The term ‘‘nonsmoker’’ submitted as part of the claims process. The ants assert they are nonsmokers or ex-smok- means a claimant who— Administrator may develop additional meth- ers for purposes of an award under Malignant (A) never smoked; or ods for auditing and evaluating other types Level VI, VII, or VIII, or as an exceptional (B) has smoked fewer than 100 cigarettes or of evidence or information received by the medical claim, the cost of which shall be the equivalent amount of other tobacco Administrator. paid by the Fund. products during the claimant’s lifetime. (2) REFUSAL TO CONSIDER CERTAIN EVI- (B) SERUM COTININE SCREENING.—The Ad- (12) PO2.—The term ‘‘PO2’’ means the par- DENCE.— ministrator shall require the performance of tial pressure (tension) of oxygen, which (A) IN GENERAL.—If the Administrator de- serum cotinine screening on all claimants measures the amount of dissolved oxygen in termines that an audit conducted in accord- who assert they are nonsmokers or ex-smok- the blood.

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(13) PULMONARY FUNCTION TESTING.—The substantiate noncompliance with the Occu- (B) the exposure occurred in the United term ‘‘pulmonary function testing’’ means pational Safety and Health Administration States, its territories or possessions, or spirometry testing that is in material com- standard (such as lack of engineering or while a United States citizen, while an em- pliance with the quality criteria established work practice controls, or protective equip- ployee of an entity organized under any Fed- by the American Thoracic Society and is ment) such that exposures would be equiva- eral or State law regardless of location, or performed on equipment which is in material lent to exposures before 1976 or 1986, or to while a United States citizen while serving compliance with the standards of the Amer- documented exposures in similar jobs or oc- on any United States flagged or owned ship, ican Thoracic Society for technical quality cupations where control measures had not provided the exposure results from such em- and calibration. been implemented. Claims under this sub- ployment or service; and (14) SUBSTANTIAL OCCUPATIONAL EXPOSURE paragraph shall be evaluated on an indi- (C) any additional asbestos exposure re- TO ASBESTOS.— vidual basis by a Physicians Panel. quirement under this section. (A) IN GENERAL.—The term ‘‘substantial (b) MEDICAL EVIDENCE.— (2) PROOF OF EXPOSURE.— occupational exposure’’ means employment (1) LATENCY.—Unless otherwise specified, (A) AFFIDAVITS.—Exposure to asbestos suf- in an industry and an occupation where for a all diagnoses of an asbestos-related disease ficient to satisfy the exposure requirements substantial portion of a normal work year for a level under this section shall be accom- for any disease level may be established by a for that occupation, the claimant— panied by— detailed and specific affidavit that— (i) handled raw asbestos fibers; (A) a statement by the physician providing (i) is filed by— (ii) fabricated asbestos-containing prod- the diagnosis that at least 10 years have (I) the claimant; or ucts so that the claimant in the fabrication elapsed between the date of first exposure to (II) if the claimant is deceased, a coworker process was exposed to raw asbestos fibers; asbestos or asbestos-containing products and or a family member of the claimant; and (iii) altered, repaired, or otherwise worked the diagnosis; or (ii) is found in proceedings under this title with an asbestos-containing product such (B) a history of the claimant’s exposure to be— that the claimant was exposed on a regular that is sufficient to establish a 10-year la- (I) reasonably reliable, attesting to the basis to a significant amount of asbestos fi- tency period between the date of first expo- claimant’s exposure; and bers; or sure to asbestos or asbestos-containing prod- (II) credible and not contradicted by other (iv) worked in close proximity to other ucts and the diagnosis. evidence. workers engaged in the activities described (2) DIAGNOSTIC GUIDELINES.—All diagnoses (B) OTHER PROOF.—Exposure to asbestos under clause (i), (ii), or (iii), such that the of asbestos-related diseases shall be based may alternatively be established by invoices, claimant was exposed on a regular basis to a upon— construction or other similar records, or any significant amount of asbestos fibers. (A) for disease Levels I through V, in the other reasonably reliable and credible evi- (B) REGULAR BASIS.—In this paragraph, the case of a claimant who was living at the dence. term ‘‘on a regular basis’’ means on a fre- time the claim was filed— (C) ADDITIONAL EVIDENCE.—The Adminis- quent or recurring basis. (i) a physical examination of the claimant trator may require submission of other or (15) TLC.—The term ‘‘TLC’’ means total by the physician providing the diagnosis; additional evidence of exposure, if available, lung capacity, which is the total volume of (ii) an evaluation of smoking history and for a particular claim when determined nec- air in the lung after maximal inspiration. exposure history before making a diagnosis; essary, as part of the minimum information (16) WEIGHTED OCCUPATIONAL EXPOSURE.— (iii) an x-ray reading by a certified B-read- required under section 113(c). (A) IN GENERAL.—The term ‘‘weighted oc- er; and (3) TAKE-HOME EXPOSURE.— cupational exposure’’ means exposure for a (iv) pulmonary function testing in the case (A) IN GENERAL.—A claimant may alter- period of years calculated according to the of disease Levels III, IV, and V; natively satisfy the medical criteria require- exposure weighting formula under subpara- (B) for disease Levels I through V, in the ments of this section where a claim is filed graphs (B) through (E). case of a claimant who was deceased at the by a person who alleges their exposure to as- (B) MODERATE EXPOSURE.—Subject to sub- time the claim was filed, a report from a bestos was the result of living with a person paragraph (E), each year that a claimant’s physician based upon a review of the claim- who, if the claim had been filed by that per- primary occupation, during a substantial ant’s medical records which shall include— son, would have met the exposure criteria for portion of a normal work year for that occu- (i) pathological evidence of the nonmalig- the given disease level, and the claimant pation, involved working in areas immediate nant asbestos-related disease; or lived with such person for the time period to where asbestos-containing products were (ii) an x-ray reading by a certified B-read- necessary to satisfy the exposure require- being installed, repaired, or removed under er; ment, for the claimed disease level. circumstances that involved regular air- (C) for disease Levels VI through IX, in the (B) REVIEW.—Except for claims for disease borne emissions of asbestos fibers, shall case of a claimant who was living at the Level IX (mesothelioma), all claims alleging count as 1 year of substantial occupational time the claim was filed— take-home exposure shall be submitted as an exposure. (i) a physical examination by the claim- exceptional medical claim under section (C) HEAVY EXPOSURE.—Subject to subpara- ant’s physician providing the diagnosis; or 121(g) for review by a Physicians Panel. graph (E), each year that a claimant’s pri- (ii) a diagnosis of such a malignant asbes- (4) WAIVER FOR WORKERS AND RESIDENTS OF mary occupation, during a substantial por- tos-related disease, as described in this sec- LIBBY, MONTANA.—Because of the unique na- tion of a normal work year for that occupa- tion, by a board-certified pathologist; and ture of the asbestos exposure related to the tion, involved the direct installation, repair, (D) for disease Levels VI through IX, in the vermiculite mining and milling operations in or removal of asbestos-containing products case of a claimant who was deceased at the Libby, Montana, the Administrator shall such that the person was exposed on a reg- time the claim was filed— waive the exposure requirements under this ular basis to a significant amount of asbes- (i) a diagnosis of such a malignant asbes- subtitle for individuals who worked at the tos fibers, shall count as 2 years of substan- tos-related disease, as described in this sec- vermiculite mining and milling facility in tial occupational exposure. tion, by a board-certified pathologist; and Libby, Montana, or lived or worked within a (D) VERY HEAVY EXPOSURE.—Subject to (ii) a report from a physician based upon a 20-mile radius of Libby, Montana, for at least subparagraph (E), each year that a claim- review of the claimant’s medical records. 12 consecutive months before December 31, ant’s primary occupation, during a substan- (3) CREDIBILITY OF MEDICAL EVIDENCE.—To 2004. Claimants under this section shall pro- tial portion of a normal work year for that ensure the medical evidence provided in sup- vide such supporting documentation as the occupation, was in primary asbestos manu- port of a claim is credible and consistent Administrator shall require. facturing, a World War II shipyard, or the as- with recognized medical standards, a claim- (6) PENALTY FOR FALSE STATEMENT.—Any bestos insulation trades, such that the per- ant under this title may be required to sub- false information submitted under this sub- son was exposed on a regular basis to a sig- mit— section shall be subject to section 1348 of nificant amount of asbestos fibers, shall (A) x-rays or computerized tomography; title 18, United States Code (as added by this count as 4 years of substantial occupational (B) detailed results of pulmonary function Act). exposure. tests; (d) ASBESTOS DISEASE LEVELS.— (E) DATES OF EXPOSURE.—Each year of ex- (C) laboratory tests; (1) NONMALIGNANT LEVEL I.—To receive posure calculated under subparagraphs (B), (D) tissue samples; Level I compensation, a claimant shall pro- (C), and (D) that occurred before 1976 shall be (E) results of medical examinations; vide— counted at its full value. Each year from 1976 (F) reviews of other medical evidence; and (A) a diagnosis of bilateral asbestos-related to 1986 shall be counted as 1⁄2 of its value. (G) medical evidence that complies with nonmalignant disease; and Each year after 1986 shall be counted as 1⁄10 of recognized medical standards regarding (B) evidence of 5 years cumulative occupa- its value. equipment, testing methods, and procedure tional exposure to asbestos. (F) OTHER CLAIMS.—Individuals who do not to ensure the reliability of such evidence as (2) NONMALIGNANT LEVEL II.—To receive meet the provisions of subparagraphs (A) may be submitted. Level II compensation, a claimant shall pro- through (E) and believe their post-1976 or (c) EXPOSURE EVIDENCE.— vide— post-1986 exposures exceeded the Occupa- (1) IN GENERAL.—To qualify for any disease (A) a diagnosis of bilateral asbestos-related tional Safety and Health Administration level, the claimant shall demonstrate— nonmalignant disease with ILO grade of 1/1 standard may submit evidence, documenta- (A) a minimum exposure to asbestos or as- or greater, and showing small irregular opac- tion, work history, or other information to bestos-containing products; ities of shape or size, either ss, st, or tt, and

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present in both lower lung zones, or asbes- (A) IN GENERAL.—To receive Level VIII a Physicians Panel for review for eligibility tosis determined by pathology, or blunting compensation, a claimant shall provide a di- as an exceptional medical claim. of either costophrenic angle and bilateral agnosis— (B) STANDARD.—A claim shall be des- pleural plaque; (i) of a primary lung cancer disease on the ignated as an exceptional medical claim if (B) evidence of TLC less than 80 percent or basis of findings by a board certified patholo- the claimant, for reasons beyond the control FVC less than the lower limits of normal, gist; of the claimant, cannot satisfy the require- and FEV1/FVC ratio less than 65 percent; (ii)(I) of— ments under this section, but is able, (C) evidence of 5 or more weighted years of (aa) asbestosis based on a chest x-ray of at through comparably reliable evidence that substantial occupational exposure to asbes- least 1/0 on the ILO scale and showing small meets the standards under this section, to tos; and irregular opacities of shape or size, either ss, show that the claimant has an asbestos-re- (D) supporting medical documentation, st, or tt, and present in both lower lung lated condition that is substantially com- such as a written opinion by the examining zones; and parable to that of a medical condition that or diagnosing physician, according to the di- (bb) 10 or more weighted years of substan- would satisfy the requirements of a category agnostic guidelines in section 121(b)(2), es- tial occupational exposure to asbestos; under this section. tablishing asbestos exposure as the cause of (II) of— (C) ADDITIONAL INFORMATION.—A Physi- the pulmonary condition in question. (aa) asbestosis based on a chest x-ray of at cians Panel may request additional reason- (3) NONMALIGNANT LEVEL III.—To receive least 1/1 on the ILO scale and showing small able testing to support the claimant’s appli- Level III compensation a claimant shall pro- irregular opacities of shape or size, either ss, vide— st, or tt, and present in both lower lung cation. (A) a diagnosis of bilateral asbestos-related zones; and (E) MESOTHELIOMA CASES.— nonmalignant disease with ILO grade of 1/0 (bb) 8 or more weighted years of substan- (i) IN GENERAL.—The Physicans Panel shall or greater and showing small irregular opac- tial occupational exposure to asbestos; grant priority status to— ities of shape or size, either ss, st, or tt, and (III) asbestosis determined by pathology (I) all Level IX claims with other identifi- present in both lower lung zones, or asbes- and 10 or more weighted years of substantial able asbestos exposure as provided under tosis determined by pathology; occupational exposure to asbestos; and paragraph (9)(B)(iv); and (B) evidence of TLC less than 80 percent; (iii) supporting medical documentation, (II) all Level IX claims that are filed as ex- FVC less than the lower limits of normal and such as a written opinion by the examining ceptional medical claims. FEV1/FVC ratio greater than or equal to 65 or diagnosing physician, according to the di- (ii) PHYSICIAN PANEL.—If the Physicians percent; agnostic guidelines in section 121(b)(2), es- Panel issues a certificate of medical eligi- (C) evidence of 5 or more weighted years of tablishing asbestos exposure as the cause of bility, the claimant shall be deemed to qual- substantial occupational exposure to asbes- the lung cancer in question; and 10 or more ify for Level IX compensation. If the Physi- tos; and weighted years of substantial occupational cians Panel rejects the claim, and the Ad- (D) supporting medical documentation, exposure to asbestos. ministrator deems it rejected, the claimant such as a written opinion by the examining (9) MALIGNANT LEVEL IX.—To receive Level may immediately seek judicial review under or diagnosing physician, according to the di- IX compensation, a claimant shall provide— section 302. agnostic guidelines in section 121(b)(2)— (A) a diagnosis of malignant mesothelioma (5) APPROVAL.— (i) establishing asbestos exposure as the disease on the basis of findings by a board (A) IN GENERAL.—If the Physicians Panel cause of the pulmonary condition in ques- certified pathologist; and determines that the medical evidence is suf- tion; and (B) credible evidence of identifiable expo- ficient to show a comparable asbestos-re- (ii) excluding other more likely causes of sure to asbestos resulting from— that pulmonary condition. lated condition, it shall issue a certificate of (i) occupational exposure to asbestos; (4) NONMALIGNANT LEVEL IV.—To receive medical eligibility designating the category (ii) exposure to asbestos fibers brought Level IV compensation a claimant shall pro- of asbestos-related injury under this section into the home of the claimant by a worker vide— for which the claimant shall be eligible to occupationally exposed to asbestos; or (B) evidence of TLC less than 60 percent or seek compensation. FVC less than 60 percent, and FEV1/FVC (iii) exposure to asbestos fibers resulting (B) REFERRAL.—Upon the issuance of a cer- ratio greater than or equal to 65 percent; from living or working in the proximate vi- tificate under subparagraph (A), the Physi- (C) evidence of 5 or more weighted years of cinity of a factory, shipyard, building demo- cians Panel shall submit the claim to the substantial occupational exposure to asbes- lition site, or other operation that regularly Administrator, who shall give due consider- tos before diagnosis; and released asbestos fibers into the air due to ation to the recommendation of the Physi- (D) supporting medical documentation, operations involving asbestos at that site. cians Panel in determining whether the such as a written opinion by the examining (g) EXCEPTIONAL MEDICAL CLAIMS.— claimant meets the requirements for com- or diagnosing physician, according to the di- (1) IN GENERAL.—A claimant who does not pensation under this Act. agnostic guidelines in section 121(b)(2)— meet the medical criteria requirements (6) RESUBMISSION.—Any claimant whose ap- (i) establishing asbestos exposure as the under this section may apply for designation plication for designation as an exceptional cause of the pulmonary condition in ques- of the claim as an exceptional medical claim. medical claim is rejected may resubmit an tion; and (2) APPLICATION.—When submitting an ap- application if new evidence becomes avail- (ii) excluding other more likely causes, plication for review of an exceptional med- able. The application shall identify any prior other than silica, of that pulmonary condi- ical claim, the claimant shall— applications and state the new evidence that tion. (A) state that the claim does not meet the forms the basis of the resubmission. (5) NONMALIGNANT LEVEL V.—To receive medical criteria requirements under this sec- (7) RULES.—The Administrator shall pro- Level V compensation a claimant shall pro- tion; or mulgate rules governing the procedures for vide— (B) seek designation as an exceptional seeking designation of a claim as an excep- (A) diagnosis of bilateral asbestos-related medical claim within 60 days after a deter- tional medical claim. nonmalignant disease with ILO grade of 1/1 mination that the claim is ineligible solely (8) LIBBY, MONTANA.— or greater and showing small irregular opac- for failure to meet the medical criteria re- (A) IN GENERAL.—A Libby, Montana, claim- ities of shape or size, either ss, st, or tt, and quirements under subsection (d). ant may elect to have the claimant’s claims present in both lower lung zones, or asbes- (3) REPORT OF PHYSICIAN.— designated as exceptional medical claims tosis determined by pathology; (A) IN GENERAL.—Any claimant applying and referred to a Physicians Panel for re- (B)(i) evidence of TLC less than 50 percent for designation of a claim as an exceptional or FVC less than 50 percent, and FEV1/FVC medical claim shall support an application view. In reviewing the medical evidence sub- ratio greater than or equal to 65 percent; or filed under paragraph (1) with a report from mitted by a Libby, Montana claimant in sup- port of that claim, the Physicians Panel (iii) PO2 less than 55 mm/Hg, plus a FEV1/ a physician meeting the requirements of this FVC ratio not less than 65 percent; section. shall take into consideration the unique and (C) evidence of 5 or more weighted years of (B) CONTENTS.—A report filed under sub- serious nature of asbestos exposure in Libby, substantial occupational exposure to asbes- paragraph (A) shall include— Montana, including the nature of the pleural tos; and (i) a complete review of the claimant’s disease related to asbestos exposure in (D) supporting medical documentation, medical history and current condition; Libby, Montana. such as a written opinion by the examining (ii) such additional material by way of (B) CLAIMS.—For all claims for Levels II or diagnosing physician, according to the di- analysis and documentation as shall be pre- through IV filed by Libby, Montana claim- agnostic guidelines in section 121(b)(2)— scribed by rule of the Administrator; and ants, as described under subsection (c)(4), (i) establishing asbestos exposure as the (iii) a detailed explanation as to why the once the Administrator or the Physicians cause of the pulmonary condition in ques- claim meets the requirements of paragraph Panel issues a certificate of medical eligi- tion; and (4)(B). bility to a Libby, Montana claimant, and (ii) excluding other more likely causes, (4) REVIEW.— notwithstanding the disease category des- other than silica, of that pulmonary condi- (A) IN GENERAL.—The Administrator shall ignated in the certificate or the eligible dis- tion. refer all applications and supporting docu- ease or condition established in accordance (8) MALIGNANT LEVEL VIII.— mentation submitted under paragraph (2) to with this section, or the value of the award

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For all malignant claims ral Disease B. tor’s jurisdiction, or for fraud or corruption. filed by Libby, Montana claimants, the IV Severe Asbes- $400,000 (C) ELIGIBILITY.—An individual eligible to Libby, Montana claimant shall be entitled to tosis. file a claim under the Act of April 22, 1908 (45 an award that corresponds to the malignant V Disabling Asbes- $850,000 U.S.C. 51 et seq.), commonly known as the disease category designated by the Adminis- tosis. Employers’ Liability Act, shall be eligible trator or the Physicians Panel. VIII Lung Cancer smokers, $600,000; for a special adjustment under this para- (C) EVALUATION OF CLAIMS.—For purposes With Asbes- ex-smokers, graph if such individual meets the criteria of evaluating exceptional medical claims tosis. $975,000; set forth in subparagraph (F). from Libby, Montana, a claimant shall be non-smokers, (D) AMOUNT.— deemed to have a comparable asbestos-re- $1,100,000 (i) IN GENERAL.—The amount of the special lated condition to an asbestos disease cat- IX Mesothelioma .... $1,100,000 adjustment shall be based on the type and egory Level IV, and shall be deemed to qual- severity of asbestos disease, and shall be 110 ify for compensation at Level IV, if the (2) DEFINITIONS.—In this section— percent of the average amount an injured in- claimant provides— (A) the term ‘‘nonsmoker’’ means a claim- dividual with a disease caused by asbestos, (i) a diagnosis of bilateral asbestos related ant who— as described in section 121(d) of this Act, nonmalignant disease; (i) never smoked; or would have received, during the 5-year period (ii) evidence of TLC or FVC less than 80 (ii) has smoked fewer than 100 cigarettes or before the enactment of this Act, adjusted percent; and the equivalent of other tobacco products dur- for inflation. This adjustment shall be in ad- (iii) supporting medical documentation es- ing the claimant’s lifetime; and dition to any other award for which the tablishing asbestos exposure as a substantial (B) the term ‘‘ex-smoker’’ means a claim- claimant is eligible under this Act. The contributing factor in causing the pul- ant who has not smoked during any portion amount of the special adjustment shall be re- monary condition in question, and excluding of the 12-year period preceding the diagnosis duced by an amount reasonably calculated to more likely causes of that pulmonary condi- of lung cancer. take into account all expenses of litigation tion. (3) LEVEL IX ADJUSTMENTS.— normally borne by plaintiffs, including at- (9) STUDY OF VERMICULITE PROCESSING FA- (A) IN GENERAL.—The Administrator may torney’s fees. CILITIES.— increase awards for Level IX claimants who (ii) LIMITATION.—The amount under clause (A) IN GENERAL.—As part of the ongoing have dependent children so long as the in- (i) may not exceed the amount the claimant National Asbestos Exposure Review (in this crease under this paragraph is cost neutral. is eligible to receive before applying the spe- section referred to as ‘‘NAER’’) being con- Such increased awards shall be paid for by cial adjustment under that clause. ducted by the Agency for Toxic Substances decreasing awards for claimants other than (E) ARBITRATED BENEFITS.—If railroad and Disease Registry (in this section referred Level IX, so long as no award levels are de- management and railroad labor are unable to to as ‘‘ATSDR’’) of facilities that received creased more than 10 percent. agree on a joint proposal within 45 days after vermiculite ore from Libby, Montana, the (B) IMPLEMENTATION.—Before making ad- the date of enactment of this Act, the Ad- ATSDR shall conduct a study of all Phase 1 justments under this paragraph, the Admin- ministrator shall appoint an arbitrator to sites where— istrator shall publish in the Federal Register determine the benefits under subparagraph (i) the Environmental Protection Agency notice of, and a plan for, making such ad- (D). The Administrator shall appoint an arbi- has mandated further action at the site on justments. trator who shall be acceptable to both rail- the basis of current contamination; or (4) SPECIAL ADJUSTMENT FOR FELA CASES.— road management and railroad labor. Rail- (ii) the site was an exfoliation facility that (A) IN GENERAL.—A claimant who would be road management and railroad labor shall processed roughly 100,000 tons or more of eligible to bring a claim under the Act of each designate their representatives to par- vermiculite from the Libby mine. April 22, 1908 (45 U.S.C. 51 et seq.), commonly ticipate in the arbitration. The arbitrator (B) STUDY BY ATSDR.—The study by the known as the Employers’ Liability Act, but shall submit the benefits levels to the Ad- ATSDR shall evaluate the facilities identi- for section 403 of this Act, shall be eligible ministrator not later than 30 days after ap- fied under subparagraph (A) and compare— for a special adjustment under this para- pointment and such benefits levels shall be (i) the levels of asbestos emissions from graph. based on information provided by rail labor such facilities; (B) REGULATIONS.— and rail management. The information sub- (ii) the resulting asbestos contamination (i) IN GENERAL.—Not later than 90 days mitted to the arbitrator by railroad manage- in areas surrounding such facilities; after the date of enactment of this Act, the ment and railroad labor shall be considered (iii) the levels of exposure to residents liv- Administrator shall promulgate regulations confidential and shall be disclosed to the ing in the vicinity of such facilities; relating to special adjustments under this other party upon execution of an appropriate (iv) the risks of asbestos-related disease to paragraph. confidentiality agreement. Unless the sub- the residents living in the vicinity of such (ii) JOINT PROPOSAL.—Not later than 45 mitting party provides written consent, nei- facilities; and days after the date of enactment of this Act, ther the arbitrator nor either party to the (v) the risk of asbestos-related mortality representatives of railroad management and arbitration shall divulge to any third party to residents living in the vicinity of such fa- representatives of railroad labor shall sub- any information or data, in any form, sub- cilities, mit to the Administrator a joint proposal for mitted to the arbitrator under this section. regulations describing the eligibility for and Nor shall either party use such information to the emissions, contamination, exposures, amount of special adjustments under this or data for any purpose other than participa- and risks resulting from the mining of paragraph. If a joint proposal is submitted, tion in the arbitration proceeding, and each vermiculite ore in Libby, Montana. the Administrator shall promulgate regula- party shall return to the other any informa- (C) RESULTS OF STUDY.—The results of the tions that reflect the joint proposal. tion it has received from the other party as study required under this paragraph shall be (iii) ABSENCE OF JOINT PROPOSAL.—If rail- soon the arbitration is concluded. Informa- transmitted to the Administrator. road management and railroad labor are un- tion submitted to the arbitrator may not be Subtitle D—Awards able to agree on a joint proposal within 45 admitted into evidence, nor discovered, in SEC. 131. AMOUNT. days after the date of enactment of this Act, any civil litigation in Federal or State court. (a) IN GENERAL.—An asbestos claimant who the benefits prescribed in subparagraph (E) The nature of the information submitted to meets the requirements of section 111 shall shall be the benefits available to claimants, the arbitrator shall be within the sole discre- be entitled to an award in an amount deter- and the Administrator shall promulgate reg- tion of the submitting party, and the arbi- mined by reference to the benefit table and ulations containing such benefits. trator may not require a party to submit any the matrices developed under subsection (b). (iv) REVIEW.—The parties participating in particular information, including informa- (b) BENEFIT TABLE.— the arbitration may file in the United States tion subject to a prior confidentiality agree- (1) IN GENERAL.—An asbestos claimant with District Court for the District of Columbia a ment. an eligible disease or condition established petition for review of the Administrator’s (F) DEMONSTRATION OF ELIGIBILITY.— in accordance with section 121 shall be eligi- order. The court shall have jurisdiction to (i) IN GENERAL.—A claimant under this ble for an award as determined under this affirm the order of the Administrator, or to paragraph shall be required to demonstrate— subsection. The award for all asbestos claim- set it aside, in whole or in part, or it may re- (I) employment of the claimant in the rail- ants with an eligible disease or condition es- mand the proceedings to the Administrator road industry; tablished in accordance with section 121 for such further action as it may direct. On (II) exposure of the claimant to asbestos as shall be according to the following schedule: such review, the findings and order of the part of that employment; and Level Scheduled Condi- Scheduled Value Administrator shall be conclusive on the (III) the nature and severity of the asbes- tion or Disease. parties, except that the order of the Admin- tos-related injury...... istrator may be set aside, in whole or in (ii) MEDICAL CRITERIA.—In order to be eligi- I Asbestosis/Pleu- Medical Moni- parts or remanded to the Administrator, for ble for a special adjustment a claimant shall ral Disease A. toring meet the criteria set forth in section 121 that

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00107 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1242 CONGRESSIONAL RECORD — SENATE February 14, 2006 would qualify a claimant for a payment of claims made to the Fund and the awards tion 301 of title 11, United States Code, no under Level II or greater. made and scheduled to be paid from the Fund award granted under this Act shall be treat- (5) MEDICAL MONITORING.—An asbestos as provided under section 405. ed as property of the bankruptcy estate of claimant with asymptomatic exposure, based (B) LIMITATIONS.—In no event shall less the asbestos claimant in accordance with on the criteria under section 121(d)(1), shall than 50 percent of an award be paid in the section 541(b)(6) of title 11, United States only be eligible for medical monitoring reim- first 2 years of the payment period under Code. bursement as provided under section 132. this subsection. (f) EFFECT OF PAYMENT.—The payment of (6) COST-OF-LIVING ADJUSTMENT.— (4) LUMP-SUM PAYMENTS.— an asbestos claim under this section shall be (A) IN GENERAL.—Beginning January 1, (A) In general.—The Administrator shall in full satisfaction of such claim and shall be 2007, award amounts under paragraph (1) develop guidelines to provide for 1 lump-sum deemed to operate as a release to such claim. shall be annually increased by an amount payment to asbestos claimants who are No claimant with an asbestos claim that will equal to such dollar amount multiplied by mesothelioma victims and who are alive on be paid under this section may proceed in the cost-of-living adjustment, rounded to the the date on which the Administrator re- the tort system with respect to such claim. nearest $1,000 increment. ceives notice of the eligibility of the claim- SEC. 134. SETOFFS FOR COLLATERAL SOURCE COMPENSATION AND PRIOR (B) CALCULATION OF COST-OF-LIVING ADJUST- ant. AWARDS. MENT.—For the purposes of subparagraph (A), (B) TIMING OF PAYMENTS.—Lump-sum pay- (a) IN GENERAL.—The amount of an award the cost-of-living adjustment for any cal- ments shall be made within the shorter of— otherwise available to an asbestos claimant endar year shall be the percentage, if any, by (i) not later than 30 days after the date the under this title shall be reduced by the which the consumer price index for the suc- claim is approved by the Administrator; or amount of any collateral source compensa- ceeding calendar year exceeds the consumer (ii) not later than 6 months after the date tion and by any amounts paid or to be paid price index for calendar year 2005. the claim is filed. to the claimant for a prior award under this (C) CONSUMER PRICE INDEX.— (C) TIMING OF PAYMENTS TO BE ADJUSTED Act. (i) IN GENERAL.—For the purposes of sub- WITH RESPECT TO SOLVENCY OF THE FUND.—If (b) EXCLUSIONS.— paragraph (B), the consumer price index for the Administrator determines that solvency (1) COLLATERAL SOURCE COMPENSATION.—In any calendar year is the average of the con- of the Fund would be severely harmed by the no case shall special adjustments made sumer price index as of the close of the 12- timing of the payments required under sub- under section 131(b)(3), occupational or total month period ending on August 31 of such paragraph (B), the time for such payments disability benefits under the Railroad Re- calendar year. may be extended to the shorter of— tirement Act (45 U.S.C. 201 et seq.), sickness (ii) DEFINITION.—For purposes of clause (i), (i) not later than 6 months after the date benefits under the Railroad Unemployment the term ‘‘consumer price index’’ means the the claim is approved by the Administrator; Insurance Act (45 U.S.C 351 et seq.), and vet- consumer price index published by the De- or erans’ benefits programs be deemed as col- partment of Labor. The consumer price index (ii) not later than 11 months after the date lateral source compensation for purposes of series to be used for award escalations shall the claim is filed. this section. include the consumer price index used for (5) EXPEDITED PAYMENTS.— (2) PRIOR AWARD PAYMENTS.—Any amounts all-urban consumers, with an area coverage (A) IN GENERAL.—The Administrator shall paid or to be paid for a prior claim for a non- of the United States city average, for all develop guidelines to provide for expedited malignant disease (Levels I through V) filed items, based on the 1982–1984 index based pe- payments to asbestos claimants in cases of against the Fund shall not be deducted as a riod, as published by the Department of terminal health claims as described under setoff against amounts payable for the sec- Labor. section 106(c)(2)(B) and (C). ond injury claims for a malignant disease SEC. 132. MEDICAL MONITORING. (B) TIMING OF PAYMENTS.—Total payments (Levels VI through IX), unless the malig- (a) RELATION TO STATUTE OF LIMITATIONS.— shall be made within the shorter of— nancy was diagnosed before the date on The filing of a claim under this Act that (i) not later than 6 months after the date which the nonmalignancy claim was com- seeks reimbursement for medical monitoring the claim is approved by the Administrator; pensated. shall not be considered as evidence that the or SEC. 135. CERTAIN CLAIMS NOT AFFECTED BY claimant has discovered facts that would (ii) not later than 1 year after the date the PAYMENT OF AWARDS. otherwise commence the period applicable claim is filed. (a) IN GENERAL.—The payment of an award for purposes of the statute of limitations (C) TIMING OF PAYMENTS TO BE ADJUSTED under section 106 or 133 shall not be consid- under section 113(b). WITH RESPECT TO SOLVENCY OF THE FUND.—If ered a form of compensation or reimburse- (b) COSTS.—Reimbursable medical moni- the Administrator determines that solvency ment for a loss for purposes of imposing li- toring costs shall include the costs of a of the Fund would be severely harmed by the ability on any asbestos claimant receiving claimant not covered by health insurance for timing of the payments required under sub- such payment to repay any— an examination by the claimant’s physician, paragraph (B), the time for such payments (1) life or health insurance carrier for in- x-ray tests, and pulmonary function tests may be extended to the shorter of— surance payments; or every 3 years. (i) not later than 1 year after the date the (2) person or governmental entity on ac- (c) REGULATIONS.—The Administrator shall claim is approved by the Administrator; or count of health care or disability payments. promulgate regulations that establish— (ii) not later than 2 years after the date (b) NO EFFECT ON CLAIMS.— (1) the reasonable costs for medical moni- the claim is filed. (1) IN GENERAL.—The payment of an award toring that is reimbursable; and (D) PRIORITIZATION OF CLAIMS.—The Ad- to an asbestos claimant under section 106 or (2) the procedures applicable to asbestos ministrator shall, in final regulations pro- 133 shall not affect any claim of an asbestos claimants. mulgated under section 101(c), designate cat- claimant against— (A) a life or health insurance carrier with SEC. 133. PAYMENT. egories of claims to be handled on an expe- respect to insurance; or (a) STRUCTURED PAYMENTS.— dited basis. The Administrator shall (B) against any person or governmental en- (1) IN GENERAL.—An asbestos claimant who prioritize the processing and payment of tity with respect to healthcare or disability. is entitled to an award should receive the health claims involving claimants with the (2) RULE OF CONSTRUCTION.—Nothing in this amount of the award through structured most serious health risks. The Adminis- subsection shall be construed to authorize payments from the Fund, made over a period trator shall also prioritize claims from the pursuit of a claim that is preempted of 3 years, and in no event more than 4 years claimants who face extreme financial hard- under section 403. after the date of final adjudication of the ship. claim. (6) ANNUITY.—An asbestos claimant may TITLE II—ASBESTOS INJURY CLAIMS (2) PAYMENT PERIOD AND AMOUNT.—There elect to receive any payments to which that RESOLUTION FUND shall be a presumption that any award paid claimant is entitled under this title in the Subtitle A—Asbestos Defendants Funding under this subsection shall provide for pay- form of an annuity. Allocation (b) LIMITATION ON TRANSFERABILITY.—A ment of— SEC. 201. DEFINITIONS. claim filed under this Act shall not be as- (A) 40 percent of the total amount in year In this subtitle, the following definitions signable or otherwise transferable under this 1; shall apply: Act. (B) 30 percent of the total amount in year (1) AFFILIATED GROUP.—The term ‘‘affili- (c) CREDITORS.—An award under this title 2; and shall be exempt from all claims of creditors ated group’’— (C) 30 percent of the total amount in year and from levy, execution, and attachment or (A) means a defendant participant that is 3. other remedy for recovery or collection of a an ultimate parent and any person whose en- (3) EXTENSION OF PAYMENT PERIOD.— debt, and such exemption may not be waived. tire beneficial interest is directly or indi- (A) IN GENERAL.—The Administrator shall (d) MEDICARE AS SECONDARY PAYER.—No rectly owned by that ultimate parent on the develop guidelines to provide for the pay- award under this title shall be deemed a pay- date of enactment of this Act; and ment period of an award under subsection (a) ment for purposes of section 1862 of the So- (B) shall not include any person that is a to be extended to a 4-year period if such ac- cial Security Act (42 U.S.C. 1395y). debtor or any direct or indirect majority- tion is warranted in order to preserve the (e) EXEMPT PROPERTY IN ASBESTOS CLAIM- owned subsidiary of a debtor. overall solvency of the Fund. Such guide- ANT’S BANKRUPTCY CASE.—If an asbestos (2) INDEMNIFIABLE COST.—The term lines shall include reference to the number claimant files a petition for relief under sec- ‘‘indemnifiable cost’’ means a cost, expense,

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00108 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1243 debt, judgment, or settlement incurred with prior asbestos expenditures relate to asbes- against the weight of the evidence. Any ap- respect to an asbestos claim that, at any tos premises claims against that defendant peal of a determination shall be an expedited time before December 31, 2002, was or could participant. review to the United States Circuit Court of have been subject to indemnification, con- SEC. 202. AUTHORITY AND TIERS. Appeals for the circuit in which the bank- tribution, surety, or guaranty. (a) LIABILITY FOR PAYMENTS TO THE ruptcy is filed. (3) INDEMNITEE.—The term ‘‘indemnitee’’ FUND.— (2) PROCEEDING WITH REORGANIZATION means a person against whom any asbestos (1) IN GENERAL.—Defendant participants PLAN.—A bankrupt business entity may pro- claim has been asserted before December 31, shall be liable for payments to the Fund in ceed with the filing, solicitation, confirma- 2002, who has received from any other per- accordance with this section based on tiers tion, and consummation of a plan of reorga- son, or on whose behalf a sum has been paid and subtiers assigned to defendant partici- nization that does not comply with the re- by such other person to any third person, in pants. quirements of this Act, including a trust and settlement, judgment, defense, or indemnity channeling injunction described in section (2) AGGREGATE PAYMENT OBLIGATIONS in connection with an alleged duty with re- 524(g) of title 11, United States Code, not- LEVEL.—The total payments required of all spect to the defense or indemnification of defendant participants over the life of the withstanding any other provisions of this such person concerning that asbestos claim, Fund shall not exceed a sum equal to Act, if the bankruptcy court makes a favor- other than under a policy of insurance or re- $90,000,000,000 less any bankruptcy trust cred- able determination under paragraph (1)(B), insurance. unless the bankruptcy court’s determination its under section 222(d). The Administrator (4) INDEMNITOR.—The term ‘‘indemnitor’’ is overruled on appeal and all appeals are shall have the authority to allocate the pay- means a person who has paid under a written final. Such a bankrupt business entity may ments required of the defendant participants agreement at any time before December 31, continue to so proceed, if— among the tiers as provided in this title. 2002, a sum in settlement, judgment, defense, (A) on request of a party in interest or on (3) ABILITY TO ENTER REORGANIZATION.— or indemnity to or on behalf of any person a motion of the court, and after a notice and Notwithstanding any other provision of this defending against an asbestos claim, in con- a hearing, the bankruptcy court presiding Act, all debtors that, together with all of nection with an alleged duty with respect to over the chapter 11 case of the bankrupt their direct or indirect majority-owned sub- the defense or indemnification of such per- business entity determines that such con- sidiaries, have prior asbestos expenditures son concerning that asbestos claim, except firmation is required to avoid the liquidation that payments by an insurer or reinsurer less than $1,000,000 may proceed with the fil- or the need for further financial reorganiza- under a contract of insurance or reinsurance ing, solicitation, and confirmation of a plan tion of that entity; and shall not make the insurer or reinsurer an of reorganization that does not comply with (B) an order confirming the plan of reorga- indemnitor for purposes of this subtitle. the requirements of this Act, including a nization is entered by the bankruptcy court trust and channeling injunction under sec- (5) PRIOR ASBESTOS EXPENDITURES.—The within 9 months after the date of enactment term ‘‘prior asbestos expenditures’’— tion 524(g) of title 11, United States Code. of this Act or such longer period of time ap- (A) means the gross total amount paid by Any asbestos claim made in conjunction proved by the bankruptcy court for cause or on behalf of a person at any time before with a plan of reorganization allowable shown. December 31, 2002, in settlement, judgment, under the preceding sentence shall be subject (3) APPLICABILITY.—If the bankruptcy defense, or indemnity costs related to all as- to section 403(d) of this Act. court does not make the determination re- bestos claims against that person; (b) TIER I.—Tier I shall include all debtors quired under paragraph (2), or if an order (B) includes payments made by insurance that, together with all of their direct or indi- confirming the plan is not entered within 9 carriers to or for the benefit of such person rect majority-owned subsidiaries, have prior months after the date of enactment of this or on such person’s behalf with respect to asbestos expenditures greater than $1,000,000. Act or such longer period of time approved such asbestos claims, except as provided in (c) TREATMENT OF TIER I BUSINESS ENTITIES by the bankruptcy court for cause shown, section 204(h); IN BANKRUPTCY.— the provisions of this Act shall apply to the (C) shall not include any payment made by (1) DEFINITION.— bankrupt business entity notwithstanding a person in connection with or as a result of (A) IN GENERAL.—In this subsection, the the certification. Any timely appeal under changes in insurance reserves required by term ‘‘bankrupt business entity’’ means a title 11, United States Code, from a con- contract or any activity or dispute related to person that is not a natural person that— firmation order entered during the applica- insurance coverage matters for asbestos-re- (i) filed a petition for relief under chapter ble time period shall automatically extend lated liabilities; and 11, of title 11, United States Code, before the time during which this Act is inappli- (D) shall not include any payment made by January 1, 2003; cable to the bankrupt business entity, until or on behalf of persons who are or were com- (ii) has not substantially consummated, as the appeal is fully and finally resolved. mon carriers by railroad for asbestos claims such term is defined under section 1101(2) of (4) OFFSETS.— brought under the Act of April 22, 1908 (45 title 11, United States Code, a plan of reorga- (A) PAYMENTS BY INSURERS.—To the extent U.S.C. 51 et seq.), commonly known as the nization as of the date of enactment of this that a bankrupt business entity or debtor Employers’ Liability Act, as a result of oper- Act; and successfully confirms a plan of reorganiza- ations as a common carrier by railroad, in- (iii) the bankruptcy court presiding over tion, including a trust, and channeling in- cluding settlement, judgment, defense, or in- the business entity’s case determines, after junction that involves payments by insurers demnity costs associated with these claims. notice and a hearing upon motion filed by who are otherwise subject to this Act as de- (6) ULTIMATE PARENT.—The term ‘‘ultimate the entity within 30 days after the date of scribed under section 524(g) of title 11, parent’’ means a person— enactment of this Act, that asbestos liability United States Code, an insurer who makes (A) that owned, as of December 31, 2002, the was not the sole or precipitating cause of the payments to the trust shall obtain a dollar- entire beneficial interest, directly or indi- entity’s chapter 11 filing. for-dollar reduction in the amount otherwise rectly, of at least 1 other person; and (B) MOTION AND RELATED MATTERS.—A mo- payable by that insurer under this Act to the (B) whose entire beneficial interest was not tion under subparagraph (A)(iii) shall be sup- Fund. owned, on December 31, 2002, directly or indi- ported by— (B) CONTRIBUTIONS TO FUND.—Any cash rectly, by any other single person (other (i) an affidavit or declaration of the chief payments by a bankrupt business entity, if than a natural person). executive officer, chief financial officer, or any, to a trust described under section 524(g) (7) ASBESTOS PREMISES CLAIM.—The term chief legal officer of the business entity; and of title 11, United States Code, may be ‘‘asbestos premises claim’’— (ii) copies of the entity’s public statements counted as a contribution to the Fund. (A) means an asbestos claim against a cur- and securities filings made in connection (d) TIERS II THROUGH VI.—Except as pro- rent or former premises owner or landowner, with the entity’s filing for chapter 11 protec- vided in section 204 and subsection (b) of this or person controlling or possessing premises tion. section, persons or affiliated groups are in- or land, alleging injury or death caused by Notice of such motion shall be as directed by cluded in Tier II, III, IV, V, or VI, according exposure to asbestos on such premises or the bankruptcy court, and the hearing shall to the prior asbestos expenditures paid by land or by exposure to asbestos carried off be limited to consideration of the question of such persons or affiliated groups as follows: such premises or land on the clothing or be- whether or not asbestos liability was the (1) Tier II: $75,000,000 or greater. longings of another person; and sole or precipitating cause of the entity’s (2) Tier III: $50,000,000 or greater, but less (B) includes any such asbestos claim chapter 11 filing. The bankruptcy court shall than $75,000,000. against a current or former employer alleg- hold a hearing and make its determination (3) Tier IV: $10,000,000 or greater, but less ing injury or death caused by exposure to as- with respect to the motion within 30 days than $50,000,000. bestos on premises or land owned, controlled after the date the motion is filed. In making (4) Tier V: $5,000,000 or greater, but less or possessed by the employer, if such claim its determination, the bankruptcy court than $10,000,000. is not a claim for benefits under a workers’ shall take into account the affidavits, public (5) Tier VI: $1,000,000 or greater, but less compensation law or veterans’ benefits pro- statements, and securities filings, and other than $5,000,000. gram. information, if any, submitted by the entity (6) ASBESTOS PREMISES DEFENDANT PARTICI- (8) ASBESTOS PREMISES DEFENDANT PARTICI- and all other facts and circumstances pre- PANTS.— PANT.—The term ‘‘asbestos premises defend- sented by an objecting party. Any review of (A) IN GENERAL.—Asbestos premises de- ant participant’’ means any defendant par- this determination shall be an expedited ap- fendant participants that would be included ticipant for which 95 percent or more of its peal and limited to whether the decision was in Tier II, III, IV or V according to their

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(C) OTHER ASSETS.—The Administrator, at instead be assigned to Tier III; (a) IN GENERAL.— the sole discretion of the Administrator, (ii) an asbestos premises defendant partici- (1) SUBTIER LIABILITY.—Except as other- may allow a Subtier 1 debtor to satisfy its pant that would be assigned to Tier III shall wise provided under subsections (b), (d), and funding obligation under this paragraph with instead be assigned to Tier IV; (l) of section 204, persons or affiliated groups assets other than cash if the Administrator (iii) an asbestos premises defendant partic- shall be included within Tiers I through VII determines that requiring an all-cash pay- ipant that would be assigned to Tier IV shall and shall pay amounts to the Fund in ac- ment of the debtor’s funding obligation instead be assigned to Tier V; and cordance with this section. would render the debtor’s reorganization in- (iv) an asbestos premises defendant partici- (2) REVENUES.— feasible. pant that would be assigned to Tier V shall (A) IN GENERAL.—For purposes of this sec- (D) LIABILITY.— instead be assigned to Tier VI. tion, revenues shall be determined in accord- (i) IN GENERAL.—If a person who is subject (B) RETURN TO ORIGINAL TIER.—The Admin- ance with generally accepted accounting to a case pending under a chapter of title 11, istrator may return asbestos premises de- principles, consistently applied, using the United States Code, as defined in section fendant participants to their original tier, on amount reported as revenues in the annual 201(3)(A)(i), does not pay when due any pay- a yearly basis, if the Administrator deter- report filed with the Securities and Ex- ment obligation for the debtor, the Adminis- mines that the additional revenues that change Commission in accordance with the trator shall have the right to seek payment would be collected are needed to preserve the Securities Exchange Act of 1934 (15 U.S.C. 78a of all or any portion of the entire amount solvency of the Fund. et seq.) for the most recent fiscal year end- due (as well as any other amount for which (e) TIER PLACEMENT AND COSTS.— ing on or before December 31, 2002. If the de- the debtor may be liable under sections 223 (1) PERMANENT TIER PLACEMENT.—After a fendant participant or affiliated group does and 224) from any of the direct or indirect defendant participant or affiliated group is not file reports with the Securities and Ex- majority-owned subsidiaries under section assigned to a tier and subtier under section change Commission, revenues shall be the 201(3)(A)(ii). 204(j)(6), the participant or affiliated group amount that the defendant participant or af- (ii) CAUSE OF ACTION.—Notwithstanding shall remain in that tier and subtier filiated group would have reported as reve- section 221(e), this Act shall not preclude ac- throughout the life of the Fund, regardless of nues under the rules of the Securities and tions among persons within a debtor under subsequent events, including— Exchange Commission in the event that it section 201(3)(A) (i) and (ii) with respect to (A) the filing of a petition under a chapter had been required to file. the payment obligations under this Act. of title 11, United States Code; (B) INSURANCE PREMIUMS.—Any portion of (iii) RIGHT OF CONTRIBUTION.— (B) a discharge of debt in bankruptcy; revenues of a defendant participant that is (I) IN GENERAL.—Notwithstanding any (C) the confirmation of a plan of reorga- derived from insurance premiums shall not other provision of this Act, if a direct or in- nization; or be used to calculate the payment obligation direct majority-owned foreign subsidiary of (D) the sale or transfer of assets to any of that defendant participant under this sub- a debtor participant (with such relationship other person or affiliated group, unless the title. to the debtor participant as determined on Administrator finds that the information (C) DEBTORS.—Each debtor’s revenues shall the date of enactment of this Act) is or be- submitted by the participant or affiliated include the revenues of the debtor and all of comes subject to any foreign insolvency pro- group to support its inclusion in that tier the direct or indirect majority-owned sub- ceedings, and such foreign direct or indirect- was inaccurate. sidiaries of that debtor, except that the pro majority owned subsidiary is liquidated in (2) COSTS.—Payments to the Fund by all forma revenues of a person that is included connection with such foreign insolvency pro- persons that are the subject of a case under in Subtier 2 of Tier I shall not be included in ceedings (or if the debtor participant’s inter- a chapter of title 11, United States Code, calculating the revenues of any debtor that est in such foreign subsidiary is otherwise after the date of enactment of this Act— is a direct or indirect majority owner of such canceled or terminated in connection with (A) shall constitute costs and expenses of Subtier 2 person. If a debtor or affiliated such foreign insolvency proceedings), the administration of the case under section 503 group includes a person in respect of whose debtor participant shall have a claim against of title 11, United States Code, and shall be liabilities for asbestos claims a class action such foreign subsidiary or the estate of such payable in accordance with the payment pro- trust has been established, there shall be ex- foreign subsidiary in an amount equal to the visions under this subtitle notwithstanding cluded from the 2002 revenues of such debtor greater of— the pendency of the case under that title 11; or affiliated group— (aa) the estimated amount of all current (B) shall not be stayed or affected as to en- (i) all revenues of the person in respect of and future asbestos liabilities against such forcement or collection by any stay or in- whose liabilities for asbestos claims the foreign subsidiary; or junction power of any court; and class action trust was established; and (bb) the foreign subsidiary’s allocable (C) shall not be impaired or discharged in (ii) all revenues of the debtor and affiliated share of the debtor participant’s funding ob- any current or future case under title 11, group attributable to the historical business ligations to the Fund as determined by such United States Code. operations or assets of such person, regard- foreign subsidiary’s allocable share of the (f) SUPERSEDING PROVISIONS.— less of whether such business operations or debtor participant’s 2002 gross revenue. (1) IN GENERAL.—All of the following shall assets were owned or conducted during the (II) DETERMINATION OF CLAIM AMOUNT.—The be superseded in their entireties by this Act: year 2002 by such person or by any other per- claim amount under subclause (I) (aa) or (bb) (A) The treatment of any asbestos claim in son included within such debtor and affili- shall be determined by a court of competent any plan of reorganization with respect to ated group. jurisdiction in the United States. any debtor included in Tier I. (b) TIER I SUBTIERS.— (III) EFFECT ON PAYMENT OBLIGATION.—The (B) Any asbestos claim against any debtor (1) IN GENERAL.—Each debtor in Tier I shall right to, or recovery under, any such claim included in Tier I. be included in subtiers and shall pay shall not reduce, limit, delay, or otherwise (C) Any agreement, understanding, or un- amounts to the Fund as provided under this affect the debtor participant’s payment obli- dertaking by any such debtor or any third section. gations under this Act. party with respect to the treatment of any (2) SUBTIER 1.— (iv) MAXIMUM ANNUAL PAYMENT OBLIGA- asbestos claim filed in a debtor’s bankruptcy (A) IN GENERAL.—All persons that are debt- TION.—Subject to any payments under para- case or with respect to a debtor before the ors with prior asbestos expenditures of graphs (3), (4), and (5) of this subsection, the date of enactment of this Act, whenever such $1,000,000 or greater, shall be included in annual payment obligation by a debtor under debtor’s case is either still pending, if such Subtier 1. subparagraph (B) of this paragraph shall not case is pending under a chapter other than (B) PAYMENT.— exceed $80,000,000. chapter 11 of title 11, United States Code, or (i) IN GENERAL.—Each debtor included in (3) SUBTIER 2.— subject to confirmation or substantial con- Subtier 1 shall pay on an annual basis 1.67024 (A) IN GENERAL.—Notwithstanding para- summation of a plan of reorganization under percent of the debtor’s 2002 revenues. graph (2), all persons that are debtors that chapter 11 of title 11, United States Code. (ii) EXCEPTION TO PAYMENT PERCENTAGE.— have no material continuing business oper- (2) PRIOR AGREEMENTS OF NO EFFECT.—Not- Notwithstanding clause (i), a debtor in ations, other than class action trusts under withstanding section 403(c)(3), any plan of re- Subtier 1 shall pay, on an annual basis, paragraph (6), but hold cash or other assets organization, agreement, understanding, or $500,000 if— that have been allocated or earmarked for undertaking by any debtor (including any (I) such debtor, including its direct or indi- the settlement of asbestos claims shall be in- pre-petition agreement, understanding, or rect majority-owned subsidiaries, has less cluded in Subtier 2. undertaking that requires future perform- than $10,000,000 in prior asbestos expendi- (B) ASSIGNMENT OF ASSETS.—Not later than ance) or any third party under paragraph (1), tures; 90 days after the date of enactment of this and any agreement, understanding, or under- (II) at least 95 percent of such debtors reve- Act, each person included in Subtier 2 shall taking entered into in anticipation, con- nues derive from the provision of engineer- assign all of its unencumbered assets to the templation, or furtherance of a plan of reor- ing and construction services; and Fund.

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(4) SUBTIER 3.— (B) Subtier 2: $13,750,000. II, III, IV, V, or VI, a person or affiliated (A) IN GENERAL.—Notwithstanding para- (C) Subtier 3: $11,000,000. group shall also be included in Tier VII, if graph (2), all persons that are debtors other (D) Subtier 4: $8,250,000. the person or affiliated group— than those included in Subtier 2, which have (E) Subtier 5: $5,500,000. (A) is or has at any time been subject to no material continuing business operations (e) TIER IV SUBTIERS.— asbestos claims brought under the Act of and no cash or other assets allocated or ear- (1) IN GENERAL.—Each person or affiliated April 22, 1908 (45 U.S.C. 51 et seq.), commonly marked for the settlement of any asbestos group in Tier IV shall be included in 1 of the known as the Employers’ Liability Act, as a claim, shall be included in Subtier 3. 4 subtiers of Tier IV, based on the person’s or result of operations as a common carrier by (B) ASSIGNMENT OF UNENCUMBERED AS- affiliated group’s revenues. Such subtiers railroad; and SETS.—Not later than 90 days after the date shall each contain as close to an equal num- (B) has paid (including any payments made of enactment of this Act, each person in- ber of total persons and affiliated groups as by others on behalf of such person or affili- cluded in Subtier 3 shall contribute an possible, with those persons or affiliated ated group) not less than $5,000,000 in settle- amount equal to 50 percent of its total groups with the highest revenues in Subtier ment, judgment, defense, or indemnity costs unencumbered assets. 1, those with the lowest revenues in Subtier relating to such claims, and such settlement, (5) CALCULATION OF UNENCUMBERED AS- 4. Those persons or affiliated groups with the judgment, defense, or indemnity costs con- SETS.—Unencumbered assets shall be cal- highest revenues among those remaining will stitute 75 percent or more of the total prior culated as the Subtier 3 person’s total assets, be included in Subtier 2 and the rest in asbestos expenditures by the person or affili- excluding insurance-related assets, jointly Subtier 3. ated group. held, in trust or otherwise, with a defendant (2) PAYMENT.—Each person or affiliated (2) ADDITIONAL AMOUNT.—The payment re- participant, less— group within each subtier shall pay, on an quirement for persons or affiliated groups in- (A) all allowable administrative expenses; annual basis, the following: cluded in Tier VII shall be in addition to any (B) allowable priority claims under section (A) Subtier 1: $3,850,000. payment requirement applicable to such per- 507 of title 11, United States Code; and (B) Subtier 2: $2,475,000. son or affiliated group under Tiers II through (C) allowable secured claims. (C) Subtier 3: $1,650,000. VI. (6) CLASS ACTION TRUST.—The assets of any (D) Subtier 4: $550,000. (3) SUBTIER 1.—Each person or affiliated class action trust that has been established (f) TIER V SUBTIERS.— group in Tier VII with revenues of in respect of the liabilities for asbestos (1) IN GENERAL.—Each person or affiliated $6,000,000,000 or more is included in Subtier 1 claims of any person included within a debt- group in Tier V shall be included in 1 of the and shall make annual payments of or and affiliated group that has been in- 3 subtiers of Tier V, based on the person’s or $11,000,000 to the Fund. affiliated group’s revenues. Such subtiers cluded in Tier I (exclusive of any assets (4) SUBTIER 2.—Each person or affiliated shall each contain as close to an equal num- needed to pay previously incurred expenses group in Tier VII with revenues of less than ber of total persons and affiliated groups as and asbestos claims within the meaning of $6,000,000,000, but not less than $4,000,000,000 possible, with those persons or affiliated section 403(d)(1), before the date of enact- is included in Subtier 2 and shall make an- groups with the highest revenues in Subtier ment of this Act) shall be transferred to the nual payments of $5,500,000 to the Fund. 1, those with the lowest revenues in Subtier Fund not later than 60 days after the date of (5) SUBTIER 3.—Each person or affiliated 3, and those remaining in Subtier 2. enactment of this Act. group in Tier VII with revenues of less than IER II SUBTIERS.— (2) PAYMENT.—Each person or affiliated (c) T $4,000,000,000, but not less than $500,000,000 is (1) IN GENERAL.—Each person or affiliated group within each subtier shall pay, on an included in Subtier 3 and shall make annual group in Tier II shall be included in 1 of the annual basis, the following: payments of $550,000 to the Fund. 5 subtiers of Tier II, based on the person’s or (A) Subtier 1: $1,000,000. (6) JOINT VENTURE REVENUES AND LIABIL- affiliated group’s revenues. Such subtiers (B) Subtier 2: $500,000. ITY.— shall each contain as close to an equal num- (C) Subtier 3: $200,000. (A) REVENUES.—For purposes of this sub- ber of total persons and affiliated groups as (g) TIER VI SUBTIERS.— section, the revenues of a joint venture shall possible, with— (1) IN GENERAL.—Each person or affiliated be included on a pro rata basis reflecting rel- (A) those persons or affiliated groups with group in Tier VI shall be included in 1 of the ative joint ownership to calculate the reve- the highest revenues included in Subtier 1; 3 subtiers of Tier VI, based on the person’s or nues of the parents of that joint venture. The (B) those persons or affiliated groups with affiliated group’s revenues. Such subtiers joint venture shall not be responsible for a the next highest revenues included in shall each contain as close to an equal num- contribution amount under this subsection. Subtier 2; ber of total persons and affiliated groups as (B) LIABILITY.—For purposes of this sub- (C) those persons or affiliated groups with possible, with those persons or affiliated section, the liability under the Act of April the lowest revenues included in Subtier 5; groups with the highest revenues in Subtier 22, 1908 (45 U.S.C. 51 et seq.), commonly (D) those persons or affiliated groups with 1, those with the lowest revenues in Subtier known as the Employers’ Liability Act, shall the next lowest revenues included in Subtier 3, and those remaining in Subtier 2. be attributed to the parent owners of the 4; and (2) PAYMENT.—Each person or affiliated joint venture on a pro rata basis, reflecting (E) those persons or affiliated groups re- group within each subtier shall pay, on an their relative share of ownership. The joint maining included in Subtier 3. annual basis, the following: venture shall not be responsible for a pay- (2) PAYMENTS.—Each person or affiliated (A) Subtier 1: $500,000. ment amount under this provision. group within each subtier shall pay, on an (B) Subtier 2: $250,000. annual basis, the following: (C) Subtier 3: $100,000. SEC. 204. ASSESSMENT ADMINISTRATION. (a) IN GENERAL.—Each defendant partici- (A) Subtier 1: $27,500,000. (3) OTHER PAYMENT FOR CERTAIN PERSONS pant or affiliated group shall pay to the (B) Subtier 2: $24,750,000. AND AFFILIATED GROUPS.— Fund in the amounts provided under this (C) Subtier 3: $22,000,000. (A) IN GENERAL.—Notwithstanding any subtitle as appropriate for its tier and (D) Subtier 4: $19,250,000. other provision of this subsection, and if an subtier each year until the earlier to occur (E) Subtier 5: $16,500,000. adjustment authorized by this subsection of the following: (d) TIER III SUBTIERS.— does not impair the overall solvency of the (1) The participant or affiliated group has (1) IN GENERAL.—Each person or affiliated Fund, any person or affiliated group within satisfied its obligations under this subtitle group in Tier III shall be included in 1 of the Tier VI whose required subtier payment in during the 30 annual payment cycles of the 5 subtiers of Tier III, based on the person’s or any given year would exceed such person’s or operation of the Fund. affiliated group’s revenues. Such subtiers group’s average annual expenditure on set- (2) The amount received by the Fund from shall each contain as close to an equal num- tlements, and judgments of asbestos disease- defendant participants, excluding any ber of total persons and affiliated groups as related claims over the 8 years before the amounts rebated to defendant participants possible, with— date of enactment of this Act shall make the under subsections (e) and (n), equals the (A) those persons or affiliated groups with payment required of the immediately lower maximum aggregate payment obligation of the highest revenues included in Subtier 1; subtier or, if the person’s or group’s average section 202(a)(2). (B) those persons or affiliated groups with annual expenditures on settlements and (b) SMALL BUSINESS EXEMPTION.—Notwith- the next highest revenues included in judgments over the 8 years before the date of standing any other provision of this subtitle, Subtier 2; enactment of this Act is less than $100,000, a person or affiliated group that is a small (C) those persons or affiliated groups with shall not be required to make a payment business concern (as defined under section 3 the lowest revenues included in Subtier 5; under this Act. of the Small Business Act (15 U.S.C. 632)), on (D) those persons or affiliated groups with (B) NO FURTHER ADJUSTMENT.—Any person December 31, 2002, is exempt from any pay- the next lowest revenues included in Subtier or affiliated group that receives an adjust- ment requirement under this subtitle and 4; and ment under this paragraph shall not be eligi- shall not be included in the subtier alloca- (E) those persons or affiliated groups re- ble to receive any further adjustment under tions under section 203. maining included in Subtier 3. section 204(e). (c) LIMITATION.— (2) PAYMENTS.—Each person or affiliated (h) TIER VII.— (1) IN GENERAL.—Under expedited proce- group within each subtier shall pay, on an (1) IN GENERAL.—Notwithstanding prior as- dures established by the Administrator, any annual basis, the following: bestos expenditures that might qualify a per- defendant participant may apply for a limi- (A) Subtier 1: $16,500,000. son or affiliated group to be included in Tiers tation on its annual payment obligation to

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00111 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1246 CONGRESSIONAL RECORD — SENATE February 14, 2006 the Fund by showing that it qualifies under this subsection under the procedures pre- ration by demonstrating that it remains jus- subparagraph (3), and the Administrator scribed in subsection (i)(10). The Adminis- tified. Such renewed hardship adjustments shall promptly grant such application if the trator may adjust a defendant participant’s shall have a term of 5 years unless the Ad- standards in subparagraph (3) are satisfied. payment obligations under this subsection, ministrator determines at the time of the re- (2) STAY OF PAYMENT.—A defendant partic- either by forgiving the relevant portion of newed adjustment that a shorter or longer ipant who applies for a limitation on its an- the otherwise applicable payment obligation period is appropriate in the light of the fi- nual payment obligation to the Fund under or by providing relevant rebates from the de- nancial condition of the defendant partici- subparagraph (1) shall have the payment re- fendant hardship and inequity adjustment pant and its affiliated group and other rel- quired under subsection (i)(1)(A)(iv) stayed account created under subsection (j) after evant factors, provided that a renewed finan- until the Administrator has made a deter- payment of the otherwise applicable pay- cial hardship adjustment under this para- mination with respect to the application of ment obligation, at the discretion of the Ad- graph shall terminate automatically in the such defendant participant. ministrator. event that the defendant participant holding (3) APPLICATION FOR LIMITATION.—A defend- (2) FINANCIAL HARDSHIP ADJUSTMENTS.— the adjustment files a petition under title 11, ant participant may apply under subpara- (A) IN GENERAL.—Any defendant partici- United States Code. graph (A) for a limit on its annual payment pant in any tier may apply for an adjust- (E) PROCEDURE.— obligation to the Fund if: ment under this paragraph at any time dur- (A) it is included in Tiers II, III, IV, V, or ing the period in which a payment obligation (1) The Administrator shall prescribe the VI under section 202; and to the Funds remains outstanding any may information to be submitted in applications (B) its prior asbestos expenditures are less qualify for such an adjustment by dem- for adjustments under this paragraph. than $200 million and its revenues as defined onstrating to the satisfaction of the Admin- (2) All audited financial information re- in this section are less than $10 Billion. istrator that the amount of its payment obli- quired under this paragraph shall be as re- (4) LIMITATION.—Such qualifying defendant gation would materially and adversely affect ported by the defendant participant in its participant may apply for the limit set forth the defendant participant’s ability to con- annual report filed with the Securities and in either clause (A), (B) or (C), provided that tinue its business and to pay or satisfy its Exchange Commission in accordance with it may apply only under one such clause and debts generally as and when they come due. the Securities Exchange Act of 1934 (15 may not change its application once the ap- Such an adjustment shall be in an amount U.S.C. 78a et seq.). Any defendant partici- that in the judgment of the Administrator is plication has been approved by the Adminis- pant that does not file reports with the Secu- reasonably necessary to prevent such mate- trator. A defendant participant qualifying rities and Exchange Commission or which rial and adverse effect on the defendant par- under this subparagraph may apply for a does not have audited financial statements ticipant’s ability to continue its business limit on its annual payment obligation to shall submit financial statements prepared and to pay or satisfy its debts generally as the Fund to an amount equal to— pursuant to generally accepted accounting and when they come due. (A) 125 percent of the arithmetical average principles. The chairman, chief executive of- (B) FACTORS TO CONSIDER.—In determining for fiscal years 1998 through 2002 of such de- ficer, and chief financial officer of the de- fendant participant’s annual prior asbestos whether to make an adjustment under sub- paragraph (A) and the amount thereof, the fendant participant shall certify under pen- expenditures; or alty of law the completeness and accuracy of (B) 150 percent of the arithmetical average Administrator shall consider— (1) the financial situation of the defendant the financial statements provided under this for fiscal years 1998 through 2002 of such de- sub-paragraph. fendant participant’s annual prior asbestos participant and its affiliated group as shown expenditures, excluding (I) the amount of in historical audited financial statements, (3) The chairman, chief executive officer, any payments by insurance carriers for the including income statement, balance sheet, and chief financial officer of the defendant benefit of such defendant participant or on and statement of cash flow, for the three fis- participant shall certify that any projected behalf of such defendant participant, and (II) cal years ending immediately prior to the information and application and projected financial state- any reimbursements of the amounts actually (3) INEQUITY ADJUSTMENTS.— ments for the three fiscal years following the paid by such defendant participant with re- (A) IN GENERAL.—A defendant participant— application; (i) may qualify for an adjustment based on spect to prior asbestos expenditures for fiscal (2) an analysis of capital spending and years 1998 through 2002, regardless of when inequity by demonstrating that the amount fixed charge coverage on a historical basis of its payment obligation under the statu- such reimbursements were actually paid; or for the three fiscal years immediately pro- (C) 1.67024 percent of the revenues for the tory allocation is exceptionally inequi- ceeding a defendant participant’s application most recent fiscal year ending on or prior to table— and for the three fiscal years following the December 31, 2002, of the affiliated group to (I) when measured against the amount of application; the likely cost to the defendant participant which such defendant participant belongs. (3) any payments or transfers of property (5) JUDICIAL REVIEW. A defendant partici- net of insurance of its future liability in the made, or obligations incurred, within the tort system in the absence of the Fund; pant who is aggrieved by the denial by the preceding 6 years by the defendant partici- Administrator or its application under this (II) when measured against the likely cost pant to or for the benefit of any insider as of past and potential future claims in the ab- paragraph is entitled to judicial review defined under section 101(31) of title 11 of the under section 303, and during the pendency of sence of this Act; United States Code or any affiliate as de- (III) when compared to the median pay- such review, section 223(a) shall not apply to fined under section 101(2) of title 11 of the that defendant participant. Without regard ment rate for all defendant participants in United States Code; the same tier; or to section 305(a), the reviewing court may, in (4) any prior extraordinary transactions (IV) when measured against the percentage its discretion, provide such interlocutory re- within the preceding 6 years involving the of the prior asbestos expenditures of the de- lief to the defendant participant as may be defendant participant, including without fendant that were incurred with respect to just. limitation payments or extraordinary sala- claims that neither resulted in an adverse (6) APPLICABILITY OF THE GUARANTEE SUR- ries, bonuses, or dividends; CHARGE.—A defendant participant whose ap- (5) the defendant participant’s ability to judgment against the defendant, nor were plication for a limitation on its annual pay- satisfy its payment obligations to the Fund the subject of a settlement that required a ment obligation to the Fund under subpara- by borrowing or financing with equity cap- payment to a plaintiff by or on behalf of that graph (A) is approved by the Administrator, ital, or through issuance of securities of the defendant; shall not be exempt from the guaranteed defendant participant or its affiliated group (ii) shall be granted a two-tier main tier payment surcharge established under sub- to the Fund; and a two-tier subtier adjustment reducing section (1) unless otherwise provided in this (6) the defendant participant’s ability to the defendant participant’s payment obliga- Act. delay discretionary capital spending; and tion based on inequity by demonstrating (7) MINIMUM PAYMENT.—Notwithstanding (7) any other factor that the Administrator that not less than 95 percent of such person’s the limitations provided in this subsection, a considers relevant. prior asbestos expenditures arose from defendant participant that is granted a limi- (C) TERM.—A financial hardship adjust- claims related to the manufacture and sale tation by the Administrator shall pay no less ment under this paragraph shall have a term of railroad locomotives and related products, than 5 percent of the amount the participant of 5 years unless the Administrator deter- so long as such person’s manufacture and is scheduled to pay under section 202. mines at the time the adjustment is made sale of railroad locomotives and related (d) ADJUSTMENTS.— that a shorter or longer period is appropriate products is temporally and causally remote, (1) IN GENERAL.—Under expedited proce- in the light of the financial condition of the and for purposes of this clause, a person’s dures established by the Administrator, a de- defendant participant and its affiliated manufacture and sale of railroad loco- fendant participant may seek adjustment of group and other relevant factors, provided motives and related products shall be the amount of its payment obligation based that a financial hardship adjustment under deemed to be temporally and causally re- on severe financial hardship or demonstrated this paragraph shall terminate automati- mote if the asbestos claims historically and inequity. The Administrator may determine cally in the event that the defendant partici- generally filed against such person relate to whether to grant an adjustment, in accord- pant holding the adjustment files a petition the manufacture and sale of railroad loco- ance with this subsection. A defendant par- under title 11, United States Code. motives and related products by an entity ticipant has a right to obtain a rehearing of (D) RENEWAL.—A defendant participant dissolved more than 25 years before the date the Administrator’s determination under may renew a hardship adjustment upon expi- of enactment of this Act;

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00112 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1247 (iii) shall be granted a two-tier adjustment Act to make the determination of hardship account of the indemnitor, even if the reducing the defendant participant’s pay- and inequity adjustments more efficient and indemnitor would have no direct right to the ment obligation based on inequity by dem- predictable. benefit of the insurance, if— onstrating that not less than 95 percent of (f) LIMITATION ON LIABILITY.—The liability (A) such insurance has been paid or reim- such participant’s prior asbestos expendi- of each defendant participant to pay to the bursed to the indemnitor or the indemnitee, tures arose from asbestos claims based on Fund shall be limited to the payment obliga- or paid on behalf of or for the benefit of the successor liability arising from a merger to tions under this Act, and, except as provided indemnitee; and which the participant or its predecessor was in subsection (f) and section 203(b)(2)(D), no (B) the indemnitor has either, with respect a party that occurred at least 30 years before defendant participant shall have any liabil- to such asbestos claim or any similar asbes- the date of enactment of this Act, and that ity for the payment obligations of any other tos claim, paid or reimbursed to its such prior asbestos expenditures exceed the defendant participant. indemnitee any indemnifiable cost or paid to inflation-adjusted value of the assets of the (g) CONSOLIDATION OF PAYMENTS.— any third party on behalf of or for the ben- company from which such liability was de- (1) IN GENERAL.—For purposes of deter- efit of the indemnitee any indemnifiable rived in such merger, and upon such dem- mining the payment levels of defendant par- cost. ticipants, any affiliated group including 1 or onstration the Administrator shall grant (4) TREATMENT OF CERTAIN EXPENDITURES.— more defendant participants may irrev- such adjustment for the life of the Fund and Notwithstanding any other provision of this ocably elect, as part of the submissions to be amounts paid by such defendant participant Act, where— made under paragraphs (1) and (3) of sub- prior to such adjustment in excess of its ad- (A) an indemnitor entered into a stock pur- section (j), to report on a consolidated basis justed payment obligation under this clause chase agreement in 1988 that involved the all of the information necessary to deter- shall be credited against next succeeding re- sale of the stock of businesses that produced mine the payment level under this subtitle quired payment obligations; and friction and other products; and and pay to the Fund on a consolidated basis. (iv) may, subject to the discretion of the (B) the stock purchase agreement provided (2) ELECTION.—If an affiliated group elects Administrator, be exempt from any payment that the indemnitor indemnified the obligation if such defendant participant es- consolidation as provided in this sub- section— indemnitee and its affiliates for losses aris- tablishes with the Administrator that— ing from various matters, including asbestos (I) such participant has satisfied all past (A) for purposes of this Act other than this subsection, the affiliated group shall be claims— claims; and (i) asserted before the date of the agree- (II) there is no reasonable likelihood in the treated as if it were a single participant, in- cluding with respect to the assessment of a ment; and absence of this Act of any future claims with (ii) filed after the date of the agreement costs for which the defendant participant single annual payment under this subtitle for the entire affiliated group; and prior to the 10-year anniversary of the might be responsible. stock sale, (B) PAYMENT RATE.—For purposes of sub- (B) the ultimate parent of the affiliated group shall prepare and submit each submis- then the prior asbestos expenditures arising paragraph (A), the payment rate of a defend- from the asbestos claims described in clauses ant participant is the payment amount of sion to be made under subsection (i) on be- half of the entire affiliated group and shall (i) and (ii) shall not be for the account of ei- the defendant participant as a percentage of ther the indemnitor or indemnitee. such defendant participant’s gross revenues be solely liable, as between the Adminis- for the year ending December 31, 2002. trator and the affiliated group only, for the (i) MINIMUM ANNUAL PAYMENTS.— (1) IN GENERAL.—The aggregate annual (C) TERM.—Subject to the annual avail- payment of the annual amount due from the ability of funds in the defendant inequity ad- affiliated group under this subtitle, except payments of defendant participants to the justment account established under sub- that, if the ultimate parent does not pay Fund shall be at least $3,000,000,000 for each section (k), an inequity adjustment under when due any payment obligation for the af- calendar year in the first 30 years of the this subsection shall have a term of 3 years. filiated group, the Administrator shall have Fund, or until such shorter time as the con- (D) RENEWAL.—A defendant participant the right to seek payment of all or any por- dition set forth in subsection (a)(2) is at- may renew an inequity adjustment every 3 tion of the entire amount due (as well as any tained. years by demonstrating that the adjustment other amount for which the affiliated group (2) GUARANTEED PAYMENT ACCOUNT.—To the remains justified. may be liable under sections 223 and 224) extent payments in accordance with sections (E) REINSTATEMENT.— from any member of the affiliated group; 202 and 203 (as modified by subsections (b), (i) IN GENERAL.—Following the termination (C) all members of the affiliated group (e), (g), (h), and (n) of this section) fail in any of an inequity adjustment under subpara- shall be identified in the submission under year to raise at least $3,000,000,000, after ap- graph (A), and during the funding period pre- subsection (j) and shall certify compliance plicable reductions or adjustments have been scribed under subsection (a), the Adminis- with this subsection and the Administrator’s taken according to subsections (e) and (n), trator shall annually determine whether regulations implementing this subsection; the balance needed to meet this required there has been a material change in condi- and minimum aggregate annual payment shall tions which would support a finding that the (D) the obligations under this subtitle be obtained from the defendant guaranteed amount of the defendant participant’s pay- shall not change even if, after the date of en- payment account established under sub- ment under the statutory allocation was not actment of this Act, the beneficial ownership section (k). inequitable. Based on this determination, interest between any members of the affili- (j) PROCEDURES FOR MAKING PAYMENTS.— the Administrator may, consistent with the ated group shall change. (1) INITIAL YEAR: TIERS II–VI.— policies and legislative intent underlying (3) CAUSE OF ACTION.—Notwithstanding sec- (A) IN GENERAL.—Not later than 90 days this Act, reinstate any or all of the payment tion 221(e), this Act shall not preclude ac- after enactment of this Act, each defendant obligations of the defendant participant as if tions among persons within an affiliated participant that is included in Tiers II, III, the inequity adjustment had not been grant- group with respect to the payment obliga- IV, V, or VI shall file with the Adminis- ed for that 3-year period. tions under this Act. trator— (ii) TERMS AND CONDITIONS.—In the event of (h) DETERMINATION OF PRIOR ASBESTOS EX- (i) a statement of whether the defendant a reinstatement under clause (i), the Admin- PENDITURES.— participant irrevocably elects to report on a istrator may require the defendant partici- (1) IN GENERAL.—For purposes of deter- consolidated basis under subsection (g); pant to pay any part or all of amounts not mining a defendant participant’s prior asbes- (ii) a good-faith estimate of its prior asbes- paid due to the inequity adjustment on such tos expenditures, the Administrator shall tos expenditures; terms and conditions as established by the prescribe such rules as may be necessary or (iii) a statement of its 2002 revenues, deter- Administrator. appropriate to assure that payments by mined in accordance with section 203(a)(2); (4) LIMITATION ON ADJUSTMENTS.—The ag- indemnitors before December 31, 2002, shall (iv) payment in the amount specified in gregate total of financial hardship adjust- be counted as part of the indemnitor’s prior section 203 for the lowest subtier of the tier ments under paragraph (2) and inequity ad- asbestos expenditures, rather than the within which the defendant participant falls, justments under paragraph (3) in effect in indemnitee’s prior asbestos expenditures, in except that if the defendant participant, or any given year shall not be limited. accordance with this subsection. the affiliated group including the defendant (6) RULEMAKING AND ADVISORY PANELS.— (2) INDEMNIFIABLE COSTS.—If an indemnitor participant, had 2002 revenues exceeding (A) APPOINTMENT.—The Administrator may has paid or reimbursed to an indemnitee any $3,000,000,000, it or its affiliated group shall appoint a Financial Hardship Adjustment indemnifiable cost or otherwise made a pay- pay the amount specified for Subtier 3 of Panel and an Inequity Adjustment Panel to ment on behalf of or for the benefit of an Tiers II, III, or IV or Subtier 2 of Tiers V or advise the Administrator in carrying out indemnitee to a third party for an VI, depending on the applicable Tier; and this subsection. indemnifiable cost before December 31, 2002, (v) a signature page personally verifying (B) MEMBERSHIP.—The membership of the the amount of such indemnifiable cost shall the truth of the statements and estimates panels appointed under subparagraph (A) be solely for the account of the indemnitor described under this subparagraph, as re- may overlap. for purposes under this Act. quired under section 404 of the Sarbanes- (C) COORDINATION.—The panels appointed (3) INSURANCE PAYMENTS.—When computing Oxley Act of 2002 (15 U.S.C. 7201 et seq.). under subparagraph (A) shall coordinate the prior asbestos expenditures with respect (B) RELIEF.— their deliberations and advice. The Adminis- to an asbestos claim, any amount paid or re- (i) IN GENERAL.—The Administrator shall trator may adopt rules consistent with this imbursed by insurance shall be solely for the establish procedures to grant a defendant

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00113 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1248 CONGRESSIONAL RECORD — SENATE February 14, 2006 participant relief from its initial payment shall provide the Administrator with an ad- already paid, based on new information re- obligation if the participant shows that— dress to send any notice from the Adminis- ceived. (I) the participant is likely to qualify for a trator in accordance with this Act and all (B) ADDITIONAL PARTICIPANT.—If the Ad- financial hardship adjustment; and the information required by the Adminis- ministrator, at any time, receives informa- (II) failure to provide interim relief would trator in accordance with this subsection no tion that an additional person may qualify cause severe irreparable harm. later than the earlier of— as a defendant participant, the Adminis- (ii) JUDICIAL RELIEF.—The Administrator’s (i) 30 days after the receipt of direct notice; trator shall require such person to submit refusal to grant relief under clause (i) is sub- or information necessary to determine whether ject to immediate judicial review under sec- (ii) 30 days after the publication of notice that person is required to make payments, tion 303. in the Federal Register. and in what amount, under this subtitle and (2) INITIAL YEAR: TIER I.—Not later than 60 (B) CERTIFICATION.—The response sub- shall make any determination or take any days after enactment of this Act, each debt- mitted under subparagraph (A) shall be other act consistent with this Act based on or shall file with the Administrator— signed by a responsible corporate officer, such information or any other information (A) a statement identifying the bank- general partner, proprietor, or individual of available to the Administrator with respect ruptcy case(s) associated with the debtor; similar authority, who shall certify under to such person. (B) a statement whether its prior asbestos penalty of law the completeness and accu- (9) SUBPOENAS.—The Administrator may expenditures exceed $1,000,000; racy of the information submitted. request the Attorney General to subpoena (C) a statement whether it has material (C) CONSENT TO AUDIT AUTHORITY.—The re- persons to compel testimony, records, and continuing business operations and, if not, sponse submitted under subparagraph (A) other information relevant to its responsibil- whether it holds cash or other assets that shall include, on behalf of the defendant par- ities under this section. The Attorney Gen- have been allocated or earmarked for asbes- ticipant or affiliated group, a consent to the eral may enforce such subpoena in appro- tos settlements; Administrator’s audit authority under sec- priate proceedings in the United States dis- (D) in the case of debtors falling within tion 221(d). trict court for the district in which the per- Subtier 1 of Tier I— (6) NOTICE OF INITIAL DETERMINATION.— son to whom the subpoena was addressed re- (i) a statement of the debtor’s 2002 reve- (A) IN GENERAL.— sides, was served, or transacts business. nues, determined in accordance with section (i) NOTICE TO INDIVIDUAL.—Not later than 203(a)(2); 60 days after receiving a response under (10) REHEARING.—A defendant participant (ii) for those debtors subject to the pay- paragraph (5), the Administrator shall send has a right to obtain rehearing of the Admin- ment requirement of section 203(b)(2)(B)(ii), the person a notice of initial determination istrator’s determination under this sub- a statement whether its prior asbestos ex- identifying the tier and subtier, if any, into section of the applicable tier or subtier of penditures do not exceed $10,000,000, and a de- which the person falls and the annual pay- the Administrator’s determination under scription of its business operations sufficient ment obligation, if any, to the Fund, which subsection (e) of a financial hardship or in- to show the requirements of that section are determination shall be based on the informa- equity adjustment, and of the Administra- met; and tion received from the person under this sub- tor’s determination under subsection (n) of a (iii) a payment under section 203(b)(2)(B); section and any other pertinent information distributor’s adjustment, if the request for (E) in the case of debtors falling within available to the Administrator and identified rehearing is filed within 30 days after the de- Subtier 2 of Tier I, an assignment of its as- to the defendant participant. fendant participant’s receipt of notice from sets under section 203(b)(3)(B); (ii) PUBLIC NOTICE.—Not later than 7 days the Administrator of the determination. A (F) in the case of debtors falling within after sending the notification of initial de- defendant participant may not file an action Subtier 3 of Tier I, a payment under section termination to defendant participants, the under section 303 unless the defendant par- 203(b)(4)(B), and a statement of how such Administrator shall publish in the Federal ticipant requests a rehearing under this payment was calculated; and Register a notice listing the defendant par- paragraph. The Administrator shall publish (G) a signature page personally verifying ticipants that have been sent such notifica- a notice in the Federal Register of any the truth of the statements and estimates tion, and the initial determination identi- change in a defendant participant’s tier or described under this paragraph, as required fying the tier and subtier assignment and an- subtier assignment or payment obligation as under section 404 of the Sarbanes-Oxley Act nual payment obligation of each identified a result of a rehearing. of 2002 (15 U.S.C. 7201 et seq.). participant. (k) DEFENDANT INEQUITY ADJUSTMENT AC- (3) INITIAL YEAR: TIER VII.—Not later than (B) NO RESPONSE; INCOMPLETE RESPONSE.— COUNT.— 90 days after enactment of this Act, each de- If no response in accordance with paragraph (1) IN GENERAL.—To the extent the total fendant participant in Tier VII shall file (5) is received from a defendant participant, payments by defendant participants in any with the Administrator— or if the response is incomplete, the initial given year exceed the minimum aggregate (A) a good-faith estimate of all payments determination shall be based on the best in- annual payments required under subsection of the type described in section 203(h)(1) (as formation available to the Administrator. (i), excess monies up to a maximum of modified by section 203(h)(6)); (C) PAYMENTS.—Within 30 days of receiving $300,000,000 in any such year shall be placed (B) a statement of revenues calculated in a notice of initial determination requiring in a defendant inequity adjustment account accordance with sections 203(a)(2) and 203(h); payment, the defendant participant shall pay established within the Fund by the Adminis- and the Administrator the amount required by trator. (C) payment in the amount specified in the notice, after deducting any previous pay- (2) USE OF ACCOUNT MONIES.—Monies from section 203(h). ment made by the participant under this the defendant inequity adjustment account (4) NOTICE TO PARTICIPANTS.—Not later subsection. If the amount that the defendant shall be preserved and administered like the than 240 days after enactment of this Act, participant is required to pay is less than remainder of the Fund, but shall be reserved the Administrator shall— any previous payment made by the partici- and may be used only— (A) directly notify all reasonably identifi- pant under this subsection, the Adminis- (A) to make up for any relief granted to a able defendant participants of the require- trator shall credit any excess payment defendant participant for demonstrated in- ment to submit information necessary to against the future payment obligations of equity under subsection (d) or to reimburse calculate the amount of any required pay- that defendant participant. The pendency of any defendant participant granted such re- ment to the Fund; and a petition for rehearing under paragraph (10) lief after its payment of the amount other- (B) publish in the Federal Register a no- shall not stay the obligation of the partici- wise due; and tice— pant to make the payment specified in the (B) if the condition set forth in subsection (i) setting forth the criteria in this Act, Administrator’s notice. (a)(2) is met, for any purpose that the Fund and as prescribed by the Administrator in (7) EXEMPTIONS FOR INFORMATION RE- may serve under this Act. accordance with this Act, for paying under QUIRED.— (3) CARRYOVER OF UNUSED FUNDS.—To the this subtitle as a defendant participant and (A) PRIOR ASBESTOS EXPENDITURES.—In lieu extent the Administrator does not, in any requiring any person who may be a defend- of submitting information related to prior given year, use all of the funds allocated to ant participant to submit such information; asbestos expenditures as may be required for the account under paragraph (1) for adjust- and purposes of this subtitle, a non-debtor de- ments granted under subsection (e), remain- (ii) that includes a list of all defendant par- fendant participant may consent to be as- ing funds in the account shall be carried for- ticipants notified by the Administrator signed to Tier II. ward for use by the Administrator for adjust- under subparagraph (A), and provides for 30 (B) REVENUES.—In lieu of submitting infor- ments in subsequent years. days for the submission by the public of com- mation related to revenues as may be re- ments or information regarding the com- quired for purposes of this subtitle, a non- (l) DEFENDANT GUARANTEED PAYMENT AC- pleteness and accuracy of the list of identi- debtor defendant participant may consent to COUNT.— fied defendant participants. be assigned to Subtier 1 of the defendant par- (1) IN GENERAL.—Subject to subsections (i) (5) RESPONSE REQUIRED.— ticipant’s applicable tier. and (k), if there are excess monies paid by (A) IN GENERAL.—Any person who receives (8) NEW INFORMATION.— defendant participants in any given year, in- notice under paragraph (4)(A), and any other (A) EXISTING PARTICIPANT.—The Adminis- cluding any bankruptcy trust credits that person meeting the criteria specified in the trator shall adopt procedures for requiring may be due under section 222(d), such mon- notice published under paragraph (4)(B), additional payment, or refunding amounts ies—

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00114 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1249 (A) at the discretion of the Administrator, deemed assigned to no Tier and shall have no without the need for all, or any portion of, may be used to provide additional adjust- obligation to make any payment to the Fund that year’s payment otherwise required ments under subsection (e), up to a max- under this Act. under this subtitle, the Administrator shall imum aggregate of $50,000,000 in such year; (E) EXCLUSIVE TO INEQUITY ADJUSTMENT.— reduce or waive all or any part of the pay- and Any person or affiliated group designated by ments required from defendant participants (B) to the extent not used under subpara- the Administrator as a distributor under this for that year. graph (A), shall be placed in a defendant subsection shall not be eligible for an in- (2) ANNUAL REVIEW.—The Administrator guaranteed payment account established equity adjustment under subsection 204(e). shall undertake the review required by this within the Fund by the Administrator. (3) LIMITATION ON ADJUSTMENTS.—The ag- subsection and make the necessary deter- (2) USE OF ACCOUNT MONIES.—Monies from gregate total of distributor adjustments mination under paragraph (1) every year. the defendant guaranteed payment account under this subsection in effect in any given (3) LIMITATIONS ON FUNDING HOLIDAYS.— shall be preserved and administered like the year shall not exceed $50,000,000. If the aggre- Any reduction or waiver of the defendant remainder of the Fund, but shall be reserved gate total of distributors adjustments under participants’ funding obligations shall— and may be used only— this subsection would otherwise exceed (A) be made only to the extent the Admin- (A) to ensure the minimum aggregate an- $50,000,000, then each distributor’s adjust- istrator determines that the Fund will still nual payment required under subsection (i), ment shall be reduced pro rata until the ag- be able to satisfy all of its anticipated obli- after applicable reductions or adjustments gregate of all adjustments equals $50,000,000. gations; and have been taken according to subsections (e) (4) REHEARING.—A defendant participant (B) be applied on an equal pro rata basis to and (m) is reached each year; and has a right to obtain a rehearing of the Ad- the funding obligations of all defendant par- (B) if the condition set forth in subsection ministrator’s determination on an adjust- ticipants, except as otherwise provided under (a)(2) is met, for any purpose that the Fund ment under this subsection under the proce- this paragraph. The reductions or waivers may serve under this Act. dures prescribed in subsection (j)(10). provided under this subsection shall not (n) ADJUSTMENTS FOR DISTRIBUTORS.— apply to defendant participants in Tier I, SEC. 205. STEPDOWNS AND FUNDING HOLIDAYS. (1) DEFINITION.—In this subsection, the subtiers 2 and 3, and class action trusts. For (a) STEPDOWNS.— term ‘‘distributor’’ means a person— defendant participants whose payment obli- (1) IN GENERAL.—Subject to paragraph (2), (A) whose prior asbestos expenditures arise gation has been limited under section 204(c) exclusively from the sale of products manu- the minimum aggregate annual funding obli- or who have received a financial hardship ad- factured by others; gation under section 204(i) shall be reduced justment under section 204(e)(2), aggregate (B) who did not prior to December 31, 2002, by 10 percent of the initial minimum aggre- potential reductions or waivers under this sell raw asbestos or a product containing gate funding obligation at the end of the subsection shall be calculated on the basis of more than 95 percent asbestos by weight; tenth, fifteenth, twentieth, and twenty-fifth the defendant participant’s tier and subtier (C) whose prior asbestos expenditures did years after the date of enactment of this without regard to such limitation or adjust- not arise out of— Act. Except as otherwise provided in this ment. If the aggregate potential reductions (i) the manufacture, installation, repair, paragraph, the reductions under this para- or waivers under this subsection exceed the reconditioning, maintaining, servicing, con- graph shall be applied on an equal pro rata reduction in the defendant participant’s pay- structing, or remanufacturing of any prod- basis to the funding obligations of all defend- ment obligation due to the limitation under uct; ant participants. section 204(c) and the financial hardship ad- (ii) the control of the design, specification, The reductions under this subsection shall justment under section 204(e)(2), then the de- or manufacture of any product; or not apply to defendant participants in Tier I, fendant participant’s payment obligation (iii) the sale or resale of any product subtiers 2 and 3, and class action trusts. For shall be further reduced by the difference be- under, as part of, or under the auspices of, its defendant participants whose payment obli- tween the potential reductions or waivers own brand, trademark, or service mark; and gation has been limited under section 204(c) provided under this subsection and the re- (D) who is not subject to assignment under or who have received a financial hardship ad- ductions that the defendant participant has section 202 to Tier I, II, III or VII. justment under section 204(e)(2), aggregate already received due to the application of (2) TIER REASSIGNMENT FOR DISTRIBUTORS.— potential reductions under this subsection the limitation provided in section 204(c) and (A) IN GENERAL.—Notwithstanding section shall be calculated on the basis of the de- the financial hardship adjustment provided 202, the Administrator shall assign a dis- fendant participant’s tier and subtier with- under section 204(e)(2). If the reduction in tributor to a Tier for purposes of this title out regard to such limitation or adjustment. the defendant participant’s payment obliga- under the procedures set forth in this para- If the aggregate potential reduction under tion due to the limitation provided in sec- graph. this subsection exceeds the reduction in the tion 204(c) and any the financial hardship ad- (B) DESIGNATION.—After a final determina- defendant participant’s payment obligation justment provided under section 204(e)(2) ex- tion by the Administrator under section due to the limitation under section 204(c) ceeds the amount of the reductions or waiv- 204(j), any person who is, or any affiliated and the financial hardship adjustment under ers provided in this subsection, then the de- group in which every member is, a dis- section 204(e)(2), then the defendant partici- fendant participant’s payment obligation tributor may apply to the Administrator for pant’s payment obligation shall be further shall not be further reduced under this para- adjustment of its Tier assignment under this reduced by the difference between the poten- graph. subsection. Such application shall be pre- tial reduction provided under this subsection (4) NEW INFORMATION.—If at any time the pared in accordance with such procedures as and the reductions that the defendant partic- Administrator determines that a reduction the Administrator shall promulgate by rule. ipant has already received due to the appli- or waiver under this section may cause the Once the Administrator designates a person cation of the limitation provided in section assets of the Fund and expected future pay- or affiliated group as a distributor under this 204(c) and the financial hardship adjustment ments to decrease to a level at which the subsection, such designation and the adjust- provided under section 204(e)(2). If the reduc- Fund may not be able to satisfy all of its an- ment of tier assignment under this sub- tion in the defendant participant’s payment ticipated obligations, the Administrator section are final. obligation due to the limitation provided in shall revoke all or any part of such reduction (C) PAYMENTS.—Any person or affiliated section 204(c) and any the financial hardship or waiver to the extent necessary to ensure group that seeks adjustment of its Tier as- adjustment provided under section 204(e)(2) that the Fund’s obligations are met. Such signment under this subsection shall pay all exceeds the amount of the reduction pro- revocations shall be applied on an equal pro amounts required of it under this title until vided in this subsection, then the defendant rata basis to the funding obligations of all a final determination by the Administrator participant’s payment obligation shall not defendant participants, except defendant is made under this subsection. Such pay- be further reduced under this paragraph. participants in Subtiers 2 and 3 of Tier I and ments may not be stayed pending any ap- (2) LIMITATION.—The Administrator shall class action trusts, for that year. peal. The Administrator shall grant any per- suspend, cancel, reduce, or delay any reduc- (c) CERTIFICATION.— son or affiliated group a refund or credit of tion under paragraph (1) if at any time the (1) IN GENERAL.—Before suspending, can- any payments made if such adjustment re- Administrator finds, in accordance with sub- celing, reducing, or delaying any reduction sults in a lower payment obligation. section (c), that such action is necessary and under subsection (a) or granting or revoking (D) ADJUSTMENT.—Subject to paragraph appropriate to ensure that the assets of the a reduction or waiver under subsection (b), (3), any person or affiliated group that the Fund and expected future payments remain the Administrator shall certify that the re- Administrator has designated as a dis- sufficient to satisfy the Fund’s anticipated quirements of this section are satisfied. tributor under this subsection shall be given obligations. (2) NOTICE AND COMMENT.—Before making a an adjustment of Tier assignment as follows: (b) FUNDING HOLIDAYS.— final certification under this subsection, the (i) A distributor that but for this sub- (1) IN GENERAL.—If the Administrator de- Administrator shall publish a notice in the section would be assigned to Tier IV shall be termines, at any time after 10 years fol- Federal Register of a proposed certification deemed assigned to Tier V. lowing the date of enactment of this Act, and a statement of the basis therefor and (ii) A distributor that but for this sub- that the assets of the Fund at the time of provide in such notice for a public comment section would be assigned to Tier V shall be such determination and expected future pay- period of 30 days. deemed assigned to Tier VI. ments, taking into consideration any reduc- (3) FINAL CERTIFICATION.— (iii) A distributor that but for this sub- tions under subsection (a), are sufficient to (A) IN GENERAL.—The Administrator shall section would be assigned to Tier VI shall be satisfy the Fund’s anticipated obligations publish a notice of the final certification in

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00115 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1250 CONGRESSIONAL RECORD — SENATE February 14, 2006 the Federal Register after consideration of the Commission have been appointed, the this Act, and to the jurisdiction of the courts all comments submitted under paragraph (2). Commission shall hold its first meeting. of the United States for purposes of enforc- (B) WRITTEN NOTICE.—Not later than 30 (2) SUBSEQUENT MEETINGS.—The Commis- ing this Act, in a form determined by the Ad- days after publishing any final certification sion shall meet at the call of the Chairman, ministrator. Any insurer participant refus- under subparagraph (A), the Administrator as necessary to accomplish the duties under ing to provide a written consent shall be sub- shall provide each defendant participant section 212. ject to fines and penalties as provided in sec- with written notice of that defendant’s fund- (3) QUORUM.—No business may be con- tion 223. ing obligation for that year. ducted or hearings held without the partici- (D) ISSUERS OF FINITE RISK POLICIES.— SEC. 206. ACCOUNTING TREATMENT. pation of a majority of the members of the (i) IN GENERAL.—The issuer of any policy of Defendant participants payment obliga- Commission. retrospective reinsurance purchased by an tions to the Fund shall be subject to dis- SEC. 212. DUTIES OF ASBESTOS INSURERS COM- insurer participant or its affiliate after 1990 counting under the applicable accounting MISSION. that provides for a risk or loss transfer to in- guidelines for generally accepted accounting (a) DETERMINATION OF INSURER PAYMENT sure for asbestos losses and other losses purposes and statutory accounting purposes OBLIGATIONS.— (both known and unknown), including those for each defendant participant. This section (1) IN GENERAL.— policies commonly referred to as ‘‘finite shall in no way reduce the amount of mone- (A) DEFINITIONS.—For the purposes of this risk’’, ‘‘aggregate stop loss’’, ‘‘aggregate ex- Act, the terms ‘‘insurer’’ and ‘‘insurer par- tary payments to the Fund by defendant par- cess of loss’’, or ‘‘loss portfolio transfer’’ ticipant’’ shall, unless stated otherwise, in- ticipants as required under section 202(a)(2). policies, shall be obligated to make pay- clude direct insurers and reinsurers, as well ments required under this Act directly to the Subtitle B—Asbestos Insurers Commission as any run-off entity established, in whole or Fund on behalf of the insurer participant SEC. 210. DEFINITION. in part, to review and pay asbestos claims. who is the beneficiary of such policy, subject In this subtitle, the term ‘‘captive insur- (B) PROCEDURES FOR DETERMINING INSURER to the underlying retention and the limits of ance company’’ means a company— PAYMENTS.—The Commission shall determine (1) whose entire beneficial interest is the amount that each insurer participant liability applicable to such policy. owned on the date of enactment of this Act, shall be required to pay into the Fund under (ii) PAYMENTS.—Payments to the Fund re- directly or indirectly, by a defendant partici- the procedures described in this section. The quired under this Act shall be treated as loss pant or by the ultimate parent or the affili- Commission shall make this determination payments for asbestos bodily injury (as if ated group of a defendant participant; by first promulgating a rule establishing a such payments were incurred as liabilities (2) whose primary commercial business methodology for allocation of payments imposed in the tort system) and shall not be during the period from calendar years 1940 among insurer participants and then apply- subject to exclusion under policies described through 1986 was to provide insurance to its ing such methodology to determine the indi- under clause (i) as a liability with respect to ultimate parent or affiliated group, or any vidual payment for each insurer participant. tax or assessment. Within 90 days after the portion of the affiliated group or a combina- The methodology may include 1 or more al- scheduled date to make an annual payment tion thereof; and location formulas to be applied to all insurer to the Fund, the insurer participant shall, at (3) that was incorporated or operating no participants or groups of similarly situated its discretion, direct the reinsurer issuing later than December 31, 2003. participants. The Commission’s rule shall in- such policy to pay all or a portion of the an- SEC. 211. ESTABLISHMENT OF ASBESTOS INSUR- clude a methodology for adjusting payments nual payment directly to the Fund up to the ERS COMMISSION. by insurer participants to make up, during full applicable limits of liability under the (a) ESTABLISHMENT.—There is established the first 5 years of the life of the Fund and policy. The reinsurer issuing such policy the Asbestos Insurers Commission (referred any subsequent years as provided in section shall be obligated to make such payments di- to in this subtitle as the ‘‘Commission’’) to 405(f) for any reduction in an insurer partici- rectly to the Fund and shall be subject to carry out the duties described in section 212. pant’s annual allocated amount caused by the enforcement provisions under section (b) MEMBERSHIP.— the granting of a financial hardship or excep- 223. The insurer participant shall remain ob- (1) APPOINTMENT.—The Commission shall tional circumstance adjustment under this ligated to make payment to the Fund of that be composed of 5 members who shall be ap- section, and any amount by which aggregate portion of the annual payment not directed pointed by the President, by and with the ad- insurer payments fall below the level re- to the issuer of such reinsurance policy. vice and consent of the Senate. quired under paragraph (3)(C) by reason of (2) AMOUNT OF PAYMENTS.— (2) QUALIFICATIONS.— the failure or refusal of any insurer partici- (A) AGGREGATE PAYMENT OBLIGATION.—The (A) EXPERTISE.—Members of the Commis- pant to make a required payment, or for any total payment required of all insurer partici- sion shall have sufficient expertise to fulfill other reason that causes such payments to pants over the life of the Fund shall be equal their responsibilities under this subtitle. fall below the level required under paragraph to $46,025,000,000, less any bankruptcy trust (B) CONFLICT OF INTEREST.— (3)(C). The Commission shall conduct a thor- credits under section 222(d). (i) IN GENERAL.—No member of the Com- ough study (within the time limitations (B) ACCOUNTING STANDARDS.—In deter- mission appointed under paragraph (1) may under this subparagraph) of the accuracy of mining the payment obligations of partici- be an employee or immediate family member the reserve allocation of each insurer partic- pants that are not licensed or domiciled in of an employee of an insurer participant. No ipant, and may request information from the the United States or that are runoff entities, member of the Commission shall be a share- Securities and Exchange Commission or any the Commission shall use accounting stand- holder of any insurer participant. No mem- State regulatory agency. Under this proce- ards required for United States licensed di- ber of the Commission shall be a former offi- dure, not later than 120 days after the initial rect insurers. cer or director, or a former employee or meeting of the Commission, the Commission (C) CAPTIVE INSURANCE COMPANIES.—No former shareholder of any insurer partici- shall commence a rulemaking proceeding payment to the Fund shall be required from pant who was such an employee, shareholder, under section 213(a) to propose and adopt a a captive insurance company, unless and officer, or director at any time during the 2- methodology for allocating payments among only to the extent a captive insurance com- year period ending on the date of the ap- insurer participants. In proposing an alloca- pany, on the date of enactment of this Act, pointment, unless that is fully disclosed be- tion methodology, the Commission may con- insures the asbestos liability, directly or in- fore consideration in the Senate of the nomi- sult with such actuaries and other experts as directly, of (and that arises out of the manu- nation for appointment to the Commission. it deems appropriate. After hearings and facture, sale, distribution or installation of (ii) DEFINITION.—In clause (i), the term public comment on the proposed allocation materials or products by, or other conduct ‘‘shareholder’’ shall not include a broadly methodology, the Commission shall as of) a person or persons other than and unaf- based mutual fund that includes the stocks promptly as possible promulgate a final rule filiated with its ultimate parent or affiliated of insurer participants as a portion of its establishing such methodology. After pro- group or pool in which the ultimate parent overall holdings. mulgation of the final rule, the Commission participates or participated, or unaffiliated (C) FEDERAL EMPLOYMENT.—A member of shall determine the individual payment of with a person that was its ultimate parent or the Commission may not be an officer or em- each insurer participant under the proce- a member of its affiliated group or pool at ployee of the Federal Government, except by dures set forth in subsection (b). the time the relevant insurance or reinsur- reason of membership on the Commission. (C) SCOPE.—Every insurer, reinsurer, and ance was issued by the captive insurance (3) PERIOD OF APPOINTMENT.—Members runoff entity with asbestos-related obliga- company. shall be appointed for the life of the Commis- tions in the United States shall be subject to (D) SEVERAL LIABILITY.—Unless otherwise sion. the Commission’s and Administrator’s au- provided under this Act, each insurer partici- (4) VACANCIES.—Any vacancy in the Com- thority under this Act, including allocation pant’s obligation to make payments to the mission shall be filled in the same manner as determinations, and shall be required to ful- Fund is several. Unless otherwise provided the original appointment. fill its payment obligation without regard as under this Act, there is no joint liability, (5) CHAIRMAN.—The President shall select a to whether it is licensed in the United and the future insolvency by any insurer Chairman from among the members of the States. Every insurer participant not li- participant shall not affect the payment re- Commission. censed or domiciled in the United States quired of any other insurer participant. (c) MEETINGS.— shall, upon the first payment to the Fund, (3) PAYMENT OF CRITERIA.— (1) INITIAL MEETING.—Not later than 30 submit a written consent to the Commis- (A) INCLUSION IN INSURER PARTICIPANT CAT- days after the date on which all members of sion’s and Administrator’s authority under EGORY.—

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(i) IN GENERAL.—Insurers that have paid, or quired by the Commission’s methodology (i) requiring any person who may be an in- been assessed by a legal judgment or settle- would jeopardize the solvency of such partic- surer participant (as determined by criteria ment, at least $1,000,000 in defense and in- ipant. outlined in the notice) to submit such infor- demnity costs before the date of enactment (iii) EXCEPTIONAL CIRCUMSTANCE ADJUST- mation; and of this Act in response to claims for com- MENT.—An insurer participant may qualify (ii) that includes a list of all insurer par- pensation for asbestos injuries arising from a for an adjustment based on exceptional cir- ticipants notified by the Commission under policy of liability insurance or contract of li- cumstances by demonstrating— subparagraph (A), and provides for 30 days ability reinsurance or retrocessional reinsur- (I) that the amount of its payments under for the submission of comments or informa- ance shall be insurer participants in the the Commission’s allocation methodology is tion regarding the completeness and accu- Fund. Other insurers shall be exempt from exceptionally inequitable when measured racy of the list of identified insurer partici- mandatory payments. against the amount of the likely cost to the pants. (ii) INAPPLICABILITY OF SECTION 202.—Since participant of its future liability in the tort (2) RESPONSE REQUIRED BY INDIVIDUAL IN- insurers may be subject in certain jurisdic- system in the absence of the Fund; SURER PARTICIPANTS.— tions to direct action suits, and it is not the (II) an offset credit as described in subpara- (A) IN GENERAL.—Any person who receives intent of this Act to impose upon an insurer, graphs (A) and (C) of subsection (b)(4); or notice under paragraph (1)(A), and any other due to its operation as an insurer, payment (III) other exceptional circumstances. person meeting the criteria specified in the obligations to the Fund in situations where The Commission may determine whether to notice published under paragraph (1)(B), the insurer is the subject of a direct action, grant an adjustment and the size of any such shall respond by providing the Commission no insurer subject to mandatory payments adjustment, but except as provided under with all the information requested in the no- under this section shall also be liable for paragraph (1)(B), subsection (f)(3), and sec- tice under a schedule or by a date estab- payments to the Fund as a defendant partici- tion 405(f), any such adjustment shall not af- lished by the Commission. pant under section 202. fect the aggregate payment obligations of in- (B) CERTIFICATION.—The response sub- (B) INSURER PARTICIPANT ALLOCATION METH- surer participants specified in paragraph mitted under subparagraph (A) shall be ODOLOGY.— (2)(A) and subparagraph (C) of this para- signed by a responsible corporate officer, (i) IN GENERAL.—The Commission shall es- tablish the payment obligations of indi- graph. general partner, proprietor, or individual of vidual insurer participants to reflect, on an (iv) TIME PERIOD OF ADJUSTMENT.—Except similar authority, who shall certify under equitable basis, the relative tort system li- for adjustments for offset credits, adjust- penalty of law the completeness and accu- ability of the participating insurers in the ments granted under this subsection shall racy of the information submitted. absence of this Act, considering and have a term not to exceed 3 years. An insurer (3) NOTICE TO INSURER PARTICIPANTS OF INI- weighting, as appropriate (but exclusive of participant may renew its adjustment by TIAL PAYMENT DETERMINATION.— workers’ compensation), such factors as— demonstrating to the Administrator that it (A) IN GENERAL.— (I) historic premium for lines of insurance remains justified. (i) NOTICE TO INSURERS.—Not later than 120 associated with asbestos exposure over rel- (F) FUNDING HOLIDAYS.— days after receipt of the information re- evant periods of time; (i) IN GENERAL.—If the Administrator de- quired by paragraph (2), the Commission (II) recent loss experience for asbestos li- termines, at any time after 10 years fol- shall send each insurer participant a notice ability; lowing the date of enactment of this Act, of initial determination requiring payments (III) amounts reserved for asbestos liabil- that the assets of the Fund at the time of to the Fund, which shall be based on the in- ity; such determination and expected future pay- formation received from the participant in (IV) the likely cost to each insurer partici- ments are sufficient to satisfy the Fund’s an- response to the Commission’s request for in- pant of its future liabilities under applicable ticipated obligations without the need for formation. An insurer participant’s pay- insurance policies; and all, or any portion of, that year’s payment ments shall be payable over the schedule es- (V) any other factor the Commission may otherwise required under this subtitle, the tablished in subsection (a)(3)(C), in annual determine is relevant and appropriate. Administrator shall reduce or waive all or amounts proportionate to the aggregate an- (ii) DETERMINATION OF RESERVES.—The any part of the payments required from in- nual amount of payments for all insurer par- Commission may establish procedures and surer participants for that year. ticipants for the applicable year. standards for determination of the asbestos (ii) ANNUAL REVIEW.—The Administrator (ii) PUBLIC NOTICE.—Not later than 7 days reserves of insurer participants. The reserves shall undertake the review required by this after sending the notification of initial de- of a United States licensed reinsurer that is subsection and make the necessary deter- termination to insurer participants, the wholly owned by, or under common control mination under clause (i) every year. Commission shall publish in the Federal of, a United States licensed direct insurer (iii) LIMITATIONS OF FUNDING HOLIDAYS.— Register a notice listing the insurer partici- shall be included as part of the direct insur- Any reduction or waiver of the insurer par- pants that have been sent such notification, er’s reserves when the reinsurer’s financial ticipants’ funding obligations shall— and the initial determination on the pay- results are included as part of the direct in- (I) be made only to the extent the Adminis- ment obligation of each identified partici- surer’s United States operations, as reflected trator determines that the Fund will still be pant. in footnote 33 of its filings with the National able to satisfy all of its anticipated obliga- (B) NO RESPONSE; INCOMPLETE RESPONSE.— Association of Insurance Commissioners or tions; and If no response is received from an insurer in published financial statements prepared (II) be applied on an equal pro rata basis to participant, or if the response is incomplete, in accordance with generally accepted ac- the funding obligations of all insurer partici- the initial determination requiring a pay- counting principles. pants for that year. ment from the insurer participant shall be (C) PAYMENT SCHEDULE.—The aggregate an- (iv) NEW INFORMATION.—If at any time the based on the best information available to nual amount of payments by insurer partici- Administrator determines that a reduction the Commission. pants over the life of the Fund shall be as or waiver under this section may cause the (4) COMMISSION REVIEW, REVISION, AND FI- follows: assets of the Fund and expected future pay- NALIZATION OF INITIAL PAYMENT DETERMINA- (i) For years 1 and 2, $2,700,000,000 annually. ments to decrease to a level at which the TIONS.— (ii) For years 3 through 5, $5,075,000,000 an- Fund may not be able to satisfy all of its an- (A) COMMENTS FROM INSURER PARTICI- nually. ticipated obligations, the Administrator PANTS.—Not later than 30 days after receiv- (iii) For years 6 through 27, $1,147,000,000 shall revoke all or any part of such reduction ing a notice of initial determination from annually. or waiver to the extent necessary to ensure the Commission, an insurer participant may (iv) For year 28, $166,000,000. that the Fund’s obligations are met. Such provide the Commission with additional in- (D) CERTAIN RUNOFF ENTITIES.—A runoff en- revocations shall be applied on an equal pro formation to support adjustments to the re- tity shall include any direct insurer or rein- rata basis to the funding obligations of all quired payments to reflect severe financial surer whose asbestos liability reserves have insurer participants for that year. hardship or exceptional circumstances, in- been transferred, directly or indirectly, to (b) PROCEDURE FOR NOTIFYING INSURER cluding the provision of an offset credit for the runoff entity and on whose behalf the PARTICIPANTS OF INDIVIDUAL PAYMENT OBLI- an insurer participant for the amount of any runoff entity handles or adjusts and, where GATIONS.— asbestos-related payments it made or was le- appropriate, pays asbestos claims. (1) NOTICE TO PARTICIPANTS.—Not later gally obligated to make, including payments (E) FINANCIAL HARDSHIP AND EXCEPTIONAL than 30 days after promulgation of the final released from an escrow, as the result of a CIRCUMSTANCE ADJUSTMENTS.— rule establishing an allocation methodology bankruptcy judicially confirmed after May (i) IN GENERAL.—Under the procedures es- under subsection (a)(1), the Commission 22, 2003, but before the date of enactment of tablished in subsection (b), an insurer partic- shall— this Act. ipant may seek adjustment of the amount of (A) directly notify all reasonably identifi- (B) ADDITIONAL PARTICIPANTS.—If, before its payments based on exceptional cir- able insurer participants of the requirement the final determination of the Commission, cumstances or severe financial hardship. to submit information necessary to calculate the Commission receives information that (ii) FINANCIAL ADJUSTMENTS.—An insurer the amount of any required payment to the an additional person may qualify as an in- participant may qualify for an adjustment Fund under the allocation methodology; and surer participant, the Commission shall re- based on severe financial hardship by dem- (B) publish in the Federal Register a no- quire such person to submit information nec- onstrating that payment of the amounts re- tice— essary to determine whether payments from

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that person should be required, in accord- (1) RECIPIENTS.—Until the work of the section (a)(3)(D). Adjustments granted under ance with the requirements of this sub- Commission has been completed and the this subsection shall have a term not to ex- section. Commission terminated, the Commission ceed 3 years. An insurer participant may (C) REVISION PROCEDURES.—The Commis- shall submit an annual report, containing renew its adjustment by demonstrating that sion shall adopt procedures for revising ini- the information described under paragraph it remains justified. Upon the grant of any tial payments based on information received (2), to— adjustment, the Administrator shall increase under subparagraphs (A) and (B), including a (A) the Committee on the Judiciary of the the payments, consistent with subsection provision requiring an offset credit for an in- Senate; (a)(1)(B), required of all other insurer par- surer participant for the amount of any as- (B) the Committee on the Judiciary of the ticipants so that there is no reduction in the bestos-related payments it made or was le- House of Representatives; and aggregate payment required of all insurer gally obligated to make, including payments (C) the Administrator. participants for the applicable years. The in- released from an escrow, as the result of a (2) CONTENTS.—The report under paragraph crease in an insurer participant’s required bankruptcy confirmed after May 22, 2003, but (1) shall state the amount that each insurer payment shall be in proportion to such par- before the date of enactment of this Act. participant is required to pay to the Fund, ticipant’s share of the aggregate payment (5) EXAMINATIONS AND SUBPOENAS.— including the payment schedule for such obligation of all insurer participants. (A) EXAMINATIONS.—The Commission may payments. (3) CREDITS FOR SHORTFALL ASSESSMENTS.— conduct examinations of the books and (e) INTERIM PAYMENTS.— If insurer participants are required during records of insurer participants to determine (1) AMOUNT OF INTERIM PAYMENT.—Within the first 5 years of the life of the Fund to the completeness and accuracy of informa- 90 days after the date of enactment of this make up any shortfall in required insurer tion submitted, or required to be submitted, Act, insurer participants shall make an ag- payments under subsection (a)(1)(B), then, to the Commission for purposes of deter- gregate payment to the Fund not to exceed beginning in year 6, the Administrator shall mining participant payments. 50 percent of the aggregate funding obliga- grant each insurer participant a credit (B) SUBPOENAS.—The Commission may re- tion specified under subsection (a)(3)(C) for against its annual required payments during quest the Attorney General to subpoena per- year 1. the applicable years that in the aggregate sons to compel testimony, records, and other (2) RESERVE INFORMATION.—Within 30 days equal the amount of shortfall assessments information relevant to its responsibilities after the date of enactment of this Act, each paid by such insurer participant during the under this section. The Attorney General insurer participant shall submit to the Ad- first 5 years of the life of the Fund. The cred- may enforce such subpoena in appropriate ministrator a certified statement of its net it shall be prorated over the same number of held reserves for asbestos liabilities as of De- proceedings in the United States district years as the number of years during which cember 31, 2004. court for the district in which the person to the insurer participant paid a shortfall as- (3) ALLOCATION OF INTERIM PAYMENT.—The whom the subpoena was addressed resides, sessment. Insurer participants which did not Administrator shall allocate the interim was served, or transacts business. pay all required payments to the Fund dur- payment among the individual insurer par- (6) ESCROW PAYMENTS.—Without regard to ing the first 5 years of the life of the Fund ticipants on an equitable basis using the net an insurer participant’s payment obligation shall not be eligible for a credit. The Admin- held asbestos reserve information provided under this section, any escrow or similar ac- istrator shall not grant a credit for shortfall count established before the date of enact- by insurer participants under subsection assessments imposed under section 405(f). ment of this Act by an insurer participant in (a)(3)(B). Within 60 days after the date of en- (4) FINANCIAL SECURITY REQUIREMENTS.— connection with an asbestos trust fund that actment of this Act, the Administrator shall Whenever an insurer participant’s A.M. has not been judicially confirmed by final publish in the Federal Register the name of Best’s claims payment rating or Standard order by the date of enactment of this Act each insurer participant, and the amount of and Poor’s financial strength rating falls shall be the property of the insurer partici- the insurer participant’s allocated share of below A¥, and until such time as either the pant and returned to that insurer partici- the interim payment. The use of net held as- insurer participant’s A.M. Best’s Rating or pant. bestos reserves as the basis to determine an Standard and Poor’s rating is equal to or (7) NOTICE TO INSURER PARTICIPANTS OF interim allocation shall not be binding on greater than A¥, the Administrator shall FINAL PAYMENT DETERMINATIONS.—Not later the Administrator in the determination of have the authority to require that the par- than 60 days after the notice of initial deter- an appropriate final allocation methodology ticipating insurer either— mination is sent to the insurer participants, under this section. All payments required (A) pay the present value of its remaining the Commission shall send each insurer par- under this paragraph shall be credited Fund payments at a discount rate deter- ticipant a notice of final determination. against the participant’s ultimate payment mined by the Administrator; or (c) INSURER PARTICIPANTS VOLUNTARY AL- obligation to the Fund established by the LOCATION AGREEMENT.— Commission. If an interim payment exceeds (B) provide an evergreen letter of credit or (1) IN GENERAL.—Not later than 30 days the ultimate payment, the Fund shall pay financial guarantee for future payments after the Commission proposes its rule estab- interest on the amount of the overpayment issued by an institution with an A.M. Best’s lishing an allocation methodology under sub- at a rate determined by the Administrator. claims payment rating or Standard & Poor’s section (a)(1), direct insurer participants li- If the ultimate payment exceeds the interim financial strength rating of at least A+. (g) ACCOUNTING TREATMENT.—Insurer par- censed or domiciled in the United States, payment, the participant shall pay interest ticipants’ payment obligations to the Fund other direct insurer participants, reinsurer on the amount of the underpayment at the shall be subject to discounting under the ap- participants licensed or domiciled in the same rate. Any participant may seek an ex- plicable accounting guidelines for generally United States, or other reinsurer partici- emption from or reduction in any payment accepted accounting purposes and statutory pants, may submit an allocation agreement, required under this subsection under the fi- accounting purposes for each insurer partici- approved by all of the participants in the ap- nancial hardship and exceptional cir- pant. This subsection shall in no way reduce plicable group, to the Commission. cumstance standards established under sub- the amount of monetary payments to the (2) ALLOCATION AGREEMENT.—To the extent section (a)(3)(E). Fund by insurer participants as required the participants in any such applicable group (4) APPEAL OF INTERIM PAYMENT DECI- under subsection (a). voluntarily agree upon an allocation ar- SIONS.—A decision by the Administrator to (h) JUDICIAL REVIEW.—The Commission’s rangement, any such allocation agreement establish an interim payment obligation rule establishing an allocation methodology, shall only govern the allocation of payments shall be considered final agency action and its final determinations of payment obliga- within that group and shall not determine reviewable under section 303, except that the tions and other final action shall be judi- the aggregate amount due from that group. reviewing court may not stay an interim cially reviewable as provided in title III. (3) CERTIFICATION.—The Commission shall payment during the pendency of the appeal. SEC. 213. POWERS OF ASBESTOS INSURERS COM- determine whether an allocation agreement (f) TRANSFER OF AUTHORITY FROM THE COM- MISSION. submitted under subparagraph (A) meets the MISSION TO THE ADMINISTRATOR.— (a) RULEMAKING.—The Commission shall requirements of this subtitle and, if so, shall (1) IN GENERAL.—Upon termination of the promulgate such rules and regulations as certify the agreement as establishing the al- Commission under section 215, the Adminis- necessary to implement its authority under location methodology governing the indi- trator shall assume all the responsibilities this Act, including regulations governing an vidual payment obligations of the partici- and authority of the Commission, except allocation methodology. Such rules and reg- pants who are parties to the agreement. The that the Administrator shall not have the ulations shall be promulgated after pro- authority of the Commission under this sub- power to modify the allocation methodology viding interested parties with the oppor- title shall, with respect to participants who established by the Commission or by cer- tunity for notice and comment. are parties to a certified allocation agree- tified agreement or to promulgate a rule es- (b) HEARINGS.—The Commission may hold ment, terminate on the day after the Com- tablishing any such methodology. such hearings, sit and act at such times and mission certifies such agreement. Under sub- (2) FINANCIAL HARDSHIP AND EXCEPTIONAL places, take such testimony, and receive section (f), the Administrator shall assume CIRCUMSTANCE ADJUSTMENTS.—Upon termi- such evidence as the Commission considers responsibility, if necessary, for calculating nation of the Commission under section 215, advisable to carry out this Act. The Commis- the individual payment obligations of par- the Administrator shall have the authority, sion shall also hold a hearing on any pro- ticipants who are parties to the certified upon application by any insurer participant, posed regulation establishing an allocation agreement. to make adjustments to annual payments methodology, before the Commission’s adop- (d) COMMISSION REPORT.— upon the same grounds as provided in sub- tion of a final regulation.

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(c) INFORMATION FROM FEDERAL AND STATE Subtitle C—Asbestos Injury Claims do so, or determining the liability of any AGENCIES.—The Commission may secure di- Resolution Fund person for a payment to the Fund, or col- rectly from any Federal or State department SEC. 221. ESTABLISHMENT OF ASBESTOS INJURY lecting any such liability, or inquiring into or agency such information as the Commis- CLAIMS RESOLUTION FUND. any offense connected with the administra- sion considers necessary to carry out this (a) ESTABLISHMENT.—There is established tion or enforcement of this title, the Admin- Act. Upon request of the Chairman of the in the Office of Asbestos Disease Compensa- istrator is authorized— Commission, the head of such department or tion the Asbestos Injury Claims Resolution (A) to examine any books, papers, records, agency shall furnish such information to the Fund, which shall be available to pay— or other data which may be relevant or ma- Commission. (1) claims for awards for an eligible disease terial to such inquiry; (d) POSTAL SERVICES.—The Commission or condition determined under title I; (B) to summon the person liable for a pay- may use the United States mails in the same ment under this title, or officer or employee manner and under the same conditions as (2) claims for reimbursement for medical monitoring determined under title I; of such person, or any person having posses- other departments and agencies of the Fed- sion, custody, or care of books of account eral Government. (3) principal and interest on borrowings under subsection (b); containing entries relating to the business of (e) GIFTS.—The Commission may not ac- the person liable or any other person the Ad- cept, use, or dispose of gifts or donations of (4) the remaining obligations to the asbes- tos trust of a debtor and the class action ministrator may deem proper, to appear be- services or property. fore the Administrator at a time and place (f) EXPERT ADVICE.—In carrying out its re- trust under section 405(g)(8); and named in the summons and to produce such sponsibilities, the Commission may enter (5) administrative expenses to carry out books, papers, records, or other data, and to into such contracts and agreements as the the provisions of this Act. give such testimony, under oath, as may be Commission determines necessary to obtain (b) BORROWING AUTHORITY.— relevant or material to such inquiry; and expert advice and analysis. (1) IN GENERAL.—The Administrator is au- (C) to take such testimony of the person thorized to borrow from time to time SEC. 214. PERSONNEL MATTERS. concerned, under oath, as may be relevant or amounts as set forth in this subsection, for (a) COMPENSATION OF MEMBERS.—Each material to such inquiry. member of the Commission shall be com- purposes of enhancing liquidity available to (2) FALSE, FRAUDULENT, OR FICTITIOUS pensated at a rate equal to the daily equiva- the Fund for carrying out the obligations of STATEMENTS OR PRACTICES.—If the Adminis- lent of the annual rate of basic pay pre- the Fund under this Act. The Administrator trator determines that materially false, scribed for level IV of the Executive Sched- may authorize borrowing in such form, over fraudulent, or fictitious statements or prac- ule under section 5315 of title 5, United such term, with such necessary disclosure to tices have been submitted or engaged in by States Code, for each day (including travel its lenders as will most efficiently enhance persons submitting information to the Ad- time) during which such member is engaged the Fund’s liquidity. ministrator or to the Asbestos Insurers Com- in the performance of the duties of the Com- (3) BORROWING CAPACITY.—The maximum mission or any other person who provides mission. amount that may be borrowed under this evidence in support of such submissions for (b) TRAVEL EXPENSES.—The members of subsection at any given time is the amount purposes of determining payment obligations the Commission shall be allowed travel ex- that, taking into account all payment obli- under this Act, the Administrator may im- penses, including per diem in lieu of subsist- gations related to all previous amounts bor- pose a civil penalty not to exceed $10,000 on ence, at rates authorized for employees of rowed in accordance with this subsection and any person found to have submitted or en- agencies under subchapter I of chapter 57 of all committed obligations of the Fund at the gaged in a materially false, fraudulent, or title 5, United States Code, while away from time of borrowing, can be repaid in full (with fictitious statement or practice under this their homes or regular places of business in interest) in a timely fashion from— Act. The Administrator shall promulgate ap- the performance of services for the Commis- (A) the available assets of the Fund as of sion. propriate regulations to implement this the time of borrowing; and (c) STAFF.— paragraph. (B) all amounts expected to be paid by par- (1) IN GENERAL.—The Chairman of the Com- (e) IDENTITY OF CERTAIN DEFENDANT PAR- ticipants during the subsequent 2 years. mission may, without regard to the civil TICIPANTS; TRANSPARENCY.— (4) REPAYMENT OBLIGATIONS.—Repayment service laws and regulations, appoint and (1) SUBMISSION OF INFORMATION.—Not later of monies borrowed by the Administrator terminate an executive director and such than 60 days after the date of enactment of under this subsection shall be repaid in full other additional personnel as may be nec- this Act, any person who, acting in good by the Fund contributors and is limited sole- essary to enable the Commission to perform faith, has knowledge that such person or ly to amounts available, present or future, in its duties. The employment of an executive such person’s affiliated group has prior as- the Fund. director shall be subject to confirmation by bestos expenditures of $1,000,000 or greater, (c) LOCKBOX FOR SEVERE ASBESTOS-RE- the Commission. shall submit to the Administrator— LATED INJURY CLAIMANTS.— (2) COMPENSATION.—The Chairman of the (A) either the name of such person, or such (1) IN GENERAL.—Within the Fund, the Ad- Commission may fix the compensation of the person’s ultimate parent; and ministrator shall establish the following ac- executive director and other personnel with- (B) the likely tier to which such person or counts: out regard to chapter 51 and subchapter III of affiliated group may be assigned under this (A) A Mesothelioma Account, which shall chapter 53 of title 5, United States Code, re- Act. be used solely to make payments to claim- lating to classification of positions and Gen- (2) PUBLICATION.—Not later than 20 days ants eligible for an award under the criteria eral Schedule pay rates, except that the rate after the end of the 60-day period referred to of Level IX. of pay for the executive director and other in paragraph (1), the Administrator or In- (B) A Lung Cancer Account, which shall be personnel may not exceed the rate payable terim Administrator, if the Administrator is used solely to make payments to claimants for level V of the Executive Schedule under not yet appointed, shall publish in the Fed- eligible for an award under the criteria of section 5316 of such title. eral Register a list of submissions required (d) DETAIL OF GOVERNMENT EMPLOYEES.— Level VIII. by this subsection, including the name of Any Federal Government employee may be (C) A Severe Asbestosis Account, which such persons or ultimate parents and the detailed to the Commission without reim- shall be used solely to make payments to likely tier to which such persons or affiliated bursement, and such detail shall be without claimants eligible for an award under the groups may be assigned. After publication of interruption or loss of civil service status or criteria of Level V. such list, any person who, acting in good privilege. (D) A Moderate Asbestosis Account, which faith, has knowledge that any other person (e) PROCUREMENT OF TEMPORARY AND shall be used solely to make payments to has prior asbestos expenditures of $1,000,000 INTERMITTENT SERVICES.—The Chairman of claimants eligible for an award under the or greater may submit to the Administrator the Commission may procure temporary and criteria of Level IV. or Interim Administrator information on the intermittent services under section 3109(b) of (2) ALLOCATION.—The Administrator shall identity of that person and the person’s prior title 5, United States Code, at rates for indi- allocate to each of the 4 accounts established asbestos expenditures. viduals which do not exceed the daily equiva- under paragraph (1) a portion of payments (f) NO PRIVATE RIGHT OF ACTION.—Except lent of the annual rate of basic pay pre- made to the Fund adequate to compensate as provided in sections 203(b)(2)(D)(ii) and scribed for level V of the Executive Schedule all anticipated claimants for each account. 204(g)(3), there shall be no private right of under section 5316 of such title. Within 60 days after the date of enactment of action under any Federal or State law SEC. 215. TERMINATION OF ASBESTOS INSURERS this Act, and periodically during the life of against any participant based on a claim of COMMISSION. the Fund, the Administrator shall determine compliance or noncompliance with this Act The Commission shall terminate 90 days an appropriate amount to allocate to each or the involvement of any participant in the after the last date on which the Commission account after consulting appropriate epide- enactment of this Act. makes a final determination of contribution miological and statistical studies. SEC. 222. MANAGEMENT OF THE FUND. under section 212(b) or 90 days after the last (d) AUDIT AUTHORITY.— (a) IN GENERAL.—Amounts in the Fund appeal of any final action by the Commission (1) IN GENERAL.—For the purpose of shall be held for the exclusive purpose of pro- is exhausted, whichever occurs later. ascertaining the correctness of any informa- viding benefits to asbestos claimants and SEC. 216. EXPENSES AND COSTS OF COMMISSION. tion provided or payments made to the Fund, their beneficiaries and to otherwise defray All expenses of the Commission shall be or determining whether a person who has not the reasonable expenses of administering the paid from the Fund. made a payment to the Fund was required to Fund.

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(b) INVESTMENTS.— troversy regarding lien priority and lien per- paying insurer or reinsurer shall be entitled (1) IN GENERAL.—Amounts in the Fund fection arising in a bankruptcy case due to a to no credit or offset for amounts collectible shall be administered and invested with the lien imposed under subsection (a). or potentially collectible from any partici- care, skill, prudence, and diligence, under (c) CIVIL ACTION.— pant nor shall such defaulting participant the circumstances prevailing at the time of (1) IN GENERAL.—In any case in which there have any right to collect any sums payable such investment, that a prudent person act- has been a refusal or failure to pay any li- under this section from any participant. ing in a like capacity and manner would use. ability imposed under this Act, including a (5) COOPERATION.—Insureds and cedents (2) STRATEGY.—The Administrator shall in- refusal or failure to provide the information shall cooperate with the Administrator’s vest amounts in the Fund in a manner that required under section 204 needed to deter- reasonable requests for assistance in any enables the Fund to make current and future mine liability, the Administrator may bring such proceeding. The positions taken or distributions to or for the benefit of asbestos a civil action in any appropriate United statements made by the Administrator in claimants. In pursuing an investment strat- States District Court, or any other appro- any such proceeding shall not be binding on egy under this subparagraph, the Adminis- priate lawsuit or proceeding outside of the or attributed to the insureds or cedents in trator shall consider, to the extent relevant United States— any other proceeding. The outcome of such a to an investment decision or action— (A) to enforce the liability and any lien of proceeding shall not have a preclusive effect (A) the size of the Fund; the United States imposed under this sec- on the insureds or cedents in any other pro- (B) the nature and estimated duration of tion; ceeding and shall not be admissible against the Fund; (B) to subject any property of the partici- any subrogee under this section. The Admin- (C) the liquidity and distribution require- pant, including any property in which the istrator shall have the authority to settle or ments of the Fund; participant has any right, title, or interest compromise any claims against a nonpaying (D) general economic conditions at the to the payment of such liability; insurer participant under this subsection. time of the investment; (C) for temporary, preliminary, or perma- (e) BAR ON UNITED STATES BUSINESS.—If (E) the possible effect of inflation or defla- nent relief; or any direct insurer or reinsurer refuses to pay tion on Fund assets; (D) to enforce a subpoena issued under sec- any contribution required by this Act, then, (F) the role that each investment or course tion 204(i)(9) to compel the production of in addition to any other penalties imposed of action plays with respect to the overall documents necessary to determine liability. by this Act, the Administrator shall issue an assets of the Fund; (2) ADDITIONAL PENALTIES.—In any action order barring such entity and its affiliates (G) the expected amount to be earned (in- under paragraph (1) in which the refusal or from insuring risks located within the cluding both income and appreciation of cap- failure to pay was willful, the Administrator United States or otherwise doing business ital) through investment of amounts in the may seek recovery— within the United States unless and until it (A) of punitive damages; Fund; and complies. If any direct insurer or reinsurer (B) of the costs of any civil action under (H) the needs of asbestos claimants for cur- refuses to furnish any information requested this subsection, including reasonable fees in- rent and future distributions authorized by the Administrator, the Administrator curred for collection, expert witnesses, and under this Act. may issue an order barring such entity and attorney’s fees; and (d) BANKRUPTCY TRUST CREDITS.— its affiliates from insuring risks located (C) in addition to any other penalty, of a (1) IN GENERAL.—Notwithstanding any within the United States or otherwise doing other provision of this Act, but subject to fine equal to the total amount of the liabil- business within the United States unless and paragraph (2) of this subsection, the Admin- ity that has not been collected. until it complies. Insurer participants or (d) ENFORCEMENT AUTHORITY AS TO INSURER istrator shall provide a credit toward the ag- their affiliates seeking to obtain a license PARTICIPANTS.— gregate payment obligations under sections from any State to write any type of insur- (1) IN GENERAL.—In addition to or in lieu of 202(a)(2) and 212(a)(2)(A) for assets received ance shall be barred from obtaining any such the enforcement remedies described in sub- license until payment of all contributions re- by the Fund from any bankruptcy trust es- section (c), the Administrator may seek to tablished under a plan of reorganization con- quired as of the date of license application. recover amounts in satisfaction of a pay- (f) CREDIT FOR REINSURANCE.—If the Ad- firmed and substantially consummated after ment not timely paid by an insurer partici- July 31, 2004. ministrator determines that an insurer par- pant under the procedures under this sub- ticipant that is a reinsurer is in default in (2) ALLOCATION OF CREDITS.—The Adminis- section. trator shall allocate, for each such bank- paying any required contribution or other- (2) SUBROGATION.—To the extent required wise not in compliance with this Act, the ruptcy trust, the credits for such assets be- to establish personal jurisdiction over non- tween the defendant and insurer aggregate Administrator may issue an order barring paying insurer participants, the Adminis- any direct insurer participant from receiving payment obligations as follows: trator shall be deemed to be subrogated to (A) DEFENDANT PARTICIPANTS.—The aggre- credit for reinsurance purchased from the de- the contractual rights of participants to faulting reinsurer after the date of the Ad- gate amount that all persons other than in- seek recovery from nonpaying insuring par- surers contributing to the bankruptcy trust ministrator’s determination of default. Any ticipants that are domiciled outside the State law governing credit for reinsurance to would have been required to pay as Tier I de- United States under the policies of liability fendants under section 203(b) if the plan of the contrary is preempted. insurance or contracts of liability reinsur- (g) DEFENSE LIMITATION.—In any pro- reorganization under which the bankruptcy ance or retrocessional reinsurance applicable trust was established had not been confirmed ceeding under this section, the participant to asbestos claims, and the Administrator shall be barred from bringing any challenge and substantially consummated and the pro- may bring an action or an arbitration ceeding under chapter 11 of title 11, United to any determination of the Administrator against the nonpaying insurer participants or the Asbestos Insurers Commission regard- States Code, that resulted in the establish- under the provisions of such policies and ment of the bankruptcy trust had remained ing its liability under this Act, or to the con- contracts, provided that— stitutionality of this Act or any provision pending as of the date of enactment of this (A) any amounts collected under this sub- Act. thereof, if such challenge could have been section shall not increase the amount of made during the review provided under sec- (B) INSURER PARTICIPANTS.—The aggregate deemed erosion allocated to any policy or tion 204(j)(10), or in a judicial review pro- amount of all credits to which insurers are contract under section 404, or otherwise re- entitled to under section 202(c)(4)(A) of the ceeding under section 303. duce coverage available to a participant; and (h) DEPOSIT OF FUNDS.— Act. (B) subrogation under this subsection shall (1) IN GENERAL.—Any funds collected under SEC. 223. ENFORCEMENT OF PAYMENT OBLIGA- have no effect on the validity of the insur- subsection (c)(2) (A) or (C) shall be— TIONS. ance policies or reinsurance, and any con- (A) deposited in the Fund; and (a) DEFAULT.—If any participant fails to trary State law is expressly preempted. make any payment in the amount of and ac- (B) used only to pay— (3) RECOVERABILITY OF CONTRIBUTION.—For cording to the schedule under this Act or as (i) claims for awards for an eligible disease purposes of this subsection— prescribed by the Administrator, after de- or condition determined under title I; or mand and a 30-day opportunity to cure the (A) all contributions to the Fund required (ii) claims for reimbursement for medical default, there shall be a lien in favor of the of a participant shall be deemed to be sums monitoring determined under title I. United States for the amount of the delin- legally required to be paid for bodily injury (2) NO EFFECT ON OTHER LIABILITIES.—The quent payment (including interest) upon all resulting from exposure to asbestos; imposition of a fine under subsection property and rights to property, whether real (B) all contributions to the Fund required (c)(2)(C) shall have no effect on— or personal, belonging to such participant. of any participant shall be deemed to be a (A) the assessment of contributions under (b) BANKRUPTCY.—In the case of a bank- single loss arising from a single occurrence subtitles A and B; or ruptcy or insolvency proceeding, the lien im- under each contract to which the Adminis- (B) any other provision of this Act. posed under subsection (a) shall be treated in trator is subrogated; and (i) PROPERTY OF THE ESTATE.—Section the same manner as a lien for taxes due and (C) with respect to reinsurance contracts, 541(b) of title 11, United States Code, is owing to the United States for purposes of all contributions to the Fund required of a amended— the provisions of title 11, United States Code, participant shall be deemed to be payments (1) in paragraph (4)(B)(ii), by striking ‘‘or’’ or section 3713(a) of title 31, United States to a single claimant for a single loss. at the end; Code. The United States Bankruptcy Court (4) NO CREDIT OR OFFSET.—In any action (2) in paragraph (5), by striking ‘‘prohibi- shall have jurisdiction over any issue or con- brought under this subsection, the non- tion.’’ and inserting ‘‘prohibition; or’’; and

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00120 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1255 (3) by inserting after paragraph (5) and be- (i) a statement by the participant as to come the successor in interest of such partic- fore the last undesignated sentence the fol- whether it believes any person will or has be- ipant; or lowing: come a successor in interest to the partici- (ii) with respect to a transaction (or series ‘‘(6) the value of any pending claim against pant for purposes of this Act and, if so, the of transactions) referenced in clause (ii) of or the amount of an award granted from the identity of that person; and subparagraph (A)— Asbestos Injury Claims Resolution Fund es- (ii) a statement by the participant as to (I) a temporary restraining order or a pre- tablished under the Fairness in Asbestos In- whether that person has acknowledged that liminary or permanent injunction against jury Resolution Act of 2006.’’. it will or has become a successor in interest such transaction (or series of transactions); (j) PROPOSED TRANSACTIONS.— for purposes of this Act. or (1) NOTICE OF PROPOSED TRANSACTION.—Any (4) DEFINITION.—In this subsection, the (II) such other relief regarding such trans- participant that has taken any action to ef- term ‘‘significant portion of the assets, prop- action (or series of transactions) as the court fectuate a proposed transaction or a pro- erties or business of a participant’’ means as- determines to be necessary to ensure that posed series of transactions under which a sets (including, without limitation, tangible performance of a participant’s payment obli- significant portion of such participant’s as- or intangible assets, securities and cash), gations under this Act is not materially im- sets, properties or business will, if con- properties or business of such participant (or paired by reason of such transaction (or se- summated as proposed, be, directly or indi- its affiliated group, to the extent that the ries of transactions). rectly, transferred by any means (including, participant has elected to be part of an affili- (C) APPLICABILITY.—If the Administrator without limitation, by sale, dividend, con- ated group under section 204(g)) that, to- or a participant wishes to challenge a state- tribution to a subsidiary or split-off) to 1 or gether with any other asset, property or ment made by a participant that a person more persons other than the participant business transferred by such participant in will not or has not become a successor in in- shall provide written notice to the Adminis- any of the previous completed 5 fiscal years terest for purposes of this Act, then this trator of such proposed transaction (or pro- of such participant (or, as appropriate, its af- paragraph shall be the exclusive means by posed series of transactions). Upon the re- filiated group), and as determined in accord- which the determination of whether such quest of such participant, and for so long as ance with United States generally accepted person will or has become a successor in in- the participant shall not publicly disclose accounting principles as in effect from time terest of the participant shall be made. This the transaction or series of transactions and to time— paragraph shall not preempt any other the Administrator shall not commence any (A) generated at least 40 percent of the rev- rights of any person under applicable Federal action under paragraph (6), the Adminis- enues of such participant (or its affiliated or State law. trator shall treat any such notice as con- group); (D) VENUE.—Any action under this para- fidential commercial information under sec- (B) constituted at least 40 percent of the graph shall be brought in any appropriate tion 552 of title 5, United States Code. assets of such participant (or its affiliated United States district court or, to the extent (2) TIMING OF NOTICE AND RELATED AC- group); necessary to obtain complete relief, any TIONS.— (C) generated at least 40 percent of the op- other appropriate forum outside of the (A) IN GENERAL.—Any notice that a partici- erating cash flows of such participant (or its United States. pant is required to give under paragraph (1) affiliated group); or (7) RULES AND REGULATIONS.—The Adminis- shall be given not later than 30 days before (D) generated at least 40 percent of the net trator may promulgate regulations to effec- the date of consummation of the proposed income or loss of such participant (or its af- tuate the intent of this subsection, including transaction or the first transaction to occur filiated group), regulations relating to the form, timing and in a proposed series of transactions. as measured during any of such 5 previous content of notices. (B) OTHER NOTIFICATIONS.— fiscal years. SEC. 224. INTEREST ON UNDERPAYMENT OR NON- (i) IN GENERAL.—Not later than the date in (5) CONSUMMATION OF TRANSACTION.—Any PAYMENT. any year by which a participant is required proposed transaction (or proposed series of If any amount of payment obligation under to make its contribution to the Fund, the transactions) with respect to which a partic- this title is not paid on or before the last participant shall deliver to the Adminis- ipant is required to provide notice under date prescribed for payment, the liable party trator a written certification stating that— paragraph (1) may not be consummated until shall pay interest on such amount at the (I) the participant has complied during the at least 30 days after delivery to the Admin- Federal short-term rate determined under period since the last such certification or the istrator of such notice, unless the Adminis- section 6621(b) of the Internal Revenue Code date of enactment of this Act with the notice trator shall earlier terminate the notice pe- of 1986, plus 5 percentage points, for the pe- requirements set forth in this subsection; or riod. The Administrator shall endeavor riod from such last date to the date paid. (II) the participant was not required to whenever possible to terminate a notice pe- SEC. 225. EDUCATION, CONSULTATION, SCREEN- provide any notice under this subsection dur- riod at the earliest practicable time. ING, AND MONITORING. ing such period. (6) RIGHT OF ACTION.— (a) IN GENERAL.—The Administrator shall (ii) SUMMARY.—The Administrator shall in- (A) IN GENERAL.—Notwithstanding section establish a program for the education, con- clude in the annual report required to be 221(f), if the Administrator or any partici- sultation, medical screening, and medical submitted to Congress under section 405 a pant believes that a participant proposes to monitoring of persons with exposure to as- summary of all such notices (after removing engage or has engaged, directly or indirectly, bestos. The program shall be funded by the all confidential identifying information) re- in, or is the subject of, a transaction (or se- Fund. ceived during the most recent fiscal year. ries of transactions)— (b) OUTREACH AND EDUCATION.— (C) NOTICE COMPLETION.—The Adminis- (i) involving a person or persons who, as a (1) IN GENERAL.—Not later than 1 year after trator shall not consider any notice given result of such transaction (or series of trans- the date of enactment of this Act, the Ad- under paragraph (1) as given until such time actions), may have or may become the suc- ministrator shall establish an outreach and as the Administrator receives substantially cessor in interest or successors in interest of education program, including a website de- all the information required by this sub- such participant, where the status or poten- signed to provide information about asbes- section. tial status as a successor in interest has not tos-related medical conditions to members of (3) CONTENTS OF NOTICE.— been stated and acknowledged by the partici- populations at risk of developing such condi- (A) IN GENERAL.—The Administrator shall pant and such person; or tions. determine by rule or regulation the informa- (ii) that may be subject to avoidance by a (2) INFORMATION.—The information pro- tion to be included in the notice required trustee under section 544(b) or 548 of title 11, vided under paragraph (1) shall include infor- under this subsection, which shall include United States Code, as if, but whether or not, mation about— such information as may be necessary to en- the participant is a subject to a case under (A) the signs and symptoms of asbestos-re- able the Administrator to determine wheth- title 11, United States Code, lated medical conditions; er— then the Administrator or such participant (B) the value of appropriate medical (i) the person or persons to whom the as- may, as a deemed creditor under applicable screening programs; and sets, properties or business are being trans- law, bring a civil action in an appropriate (C) actions that the individuals can take to ferred in the proposed transaction (or pro- forum against the participant or any other reduce their future health risks related to posed series of transactions) should be con- person who is either a party to the trans- asbestos exposure. sidered to be the successor in interest of the action (or series of transactions) or the re- (3) CONTRACTS.—Preference in any contract participant for purposes of this Act, or cipient of any asset, property or business of under this subsection shall be given to pro- (ii) the proposed transaction (or proposed the participant. viders that are existing nonprofit organiza- series of transactions) would, if con- (B) RELIEF ALLOWED.—In any action com- tions with a history and experience of pro- summated, be subject to avoidance by a menced under this subsection, the Adminis- viding occupational health outreach and edu- trustee under section 544(b) or 548 of title 11, trator or a participant, as applicable, may cational programs for individuals exposed to United States Code, as if, but whether or not, seek— asbestos. the participant is subject to a case under (i) with respect to a transaction (or series (c) MEDICAL SCREENING PROGRAM.— title 11, United States Code. of transactions) referenced in clause (i) of (1) ESTABLISHMENT OF PROGRAM.—Not soon- (B) STATEMENTS.—The notice shall also in- subparagraph (A), a declaratory judgment re- er than 18 months or later than 24 months clude— garding whether such person will or has be- after the Administrator certifies that the

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00121 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1256 CONGRESSIONAL RECORD — SENATE February 14, 2006 Fund is fully operational and processing the Social Security Act (42 U.S.C. 1395 et the ‘‘Program’’) to investigate and advance claims at a reasonable rate, the Adminis- seq.) for similar services if such services are the detection, prevention, treatment, and trator shall adopt guidelines establishing a covered under title XVIII of the Social Secu- cure of malignant mesothelioma. medical screening program for individuals at rity Act (42 U.S.C. 1395 et seq.). (b) MESOTHELIOMA CENTERS.— high risk of asbestos-related disease result- (7) FUNDING; PERIODIC REVIEW.— (1) IN GENERAL.—The Administrator shall ing from an asbestos-related disease. In pro- (A) FUNDING.—The Administrator shall make available $1,500,000 from the Fund, and mulgating such guidelines, the Adminis- make such funds available from the Fund to the Director of the National Institutes of trator shall consider the views of the Advi- implement this section, with a minimum of Health shall make available $1,000,000 from sory Committee on Asbestos Disease Com- $5,000,000 but not more than $10,000,000 each amounts available to the Director, for each pensation, the Medical Advisory Committee, year in each of the 5 years following the ef- of fiscal years 2006 through 2015, for the es- and the public. fective date of the medical screening pro- tablishment of each of 10 mesothelioma dis- (2) ELIGIBILITY CRITERIA.— gram. Notwithstanding the preceding sen- ease research and treatment centers. (A) IN GENERAL.—The guidelines promul- tence, the Administrator shall suspend the (2) REQUIREMENTS.—The Director of the gated under this subsection shall establish operation of the program or reduce its fund- National Institutes of Health, in consulta- criteria for participation in the medical ing level if necessary to preserve the sol- tion with the Medical Advisory Committee, screening program. vency of the Fund. shall conduct a competitive peer review (B) CONSIDERATIONS.—In promulgating eli- (B) REVIEW.—The Administrator may re- process to select sites for the centers de- gibility criteria the Administrator shall duce the amount of funding below $5,000,000 scribed in paragraph (1). The Director shall take into consideration all factors relevant each year if the program is fully imple- ensure that sites selected under this para- to the individual’s effective cumulative ex- mented. The Administrator’s first annual re- graph are— posure to asbestos, including— port under section 405 following the close of (A) geographically distributed throughout (i) any industry in which the individual the 4th year of operation of the medical the United States with special consideration worked; screening program shall include an analysis given to areas of high incidence of mesothe- (ii) the individual’s occupation and work of the usage of the program, its cost and ef- lioma disease; setting; fectiveness, its medical value, and the need (B) closely associated with Department of (iii) the historical period in which exposure to continue that program for an additional 5- Veterans Affairs medical centers, in order to took place; year period. The Administrator shall also provide research benefits and care to vet- (iv) the duration of the exposure; recommend to Congress any improvements erans who have suffered excessively from (v) the intensity and duration of non-occu- that may be required to make the program mesothelioma; pational exposures; more effective, efficient, and economical, (C) engaged in exemplary laboratory and (vi) the intensity and duration of exposure and shall recommend a funding level for the clinical mesothelioma research, including to risk levels of naturally occurring asbestos program for the 5 years following the period clinical trials, to provide mechanisms for ef- as defined by the Environmental Protection of initial funding referred to under subpara- fective therapeutic treatments, as well as de- Agency; and graph (A). tection and prevention, particularly in areas (vii) any other factors that the Adminis- (d) LIMITATION.—In no event shall the total trator determines relevant. of palliation of disease symptoms and pain amount allocated to the medical screening management; (3) PROTOCOLS.—The guidelines developed program established under this subsection under this subsection shall establish proto- (D) participants in the National Mesothe- over the lifetime of the Fund exceed lioma Registry and Tissue Bank under sub- cols for medical screening, which shall in- $100,000,000. clude— section (c) and the annual International (e) MEDICAL MONITORING PROGRAM AND Mesothelioma Symposium under subsection (A) administration of a health evaluation PROTOCOLS.— (d)(2)(E); and work history questionnaire; (1) IN GENERAL.—The Administrator shall (E) with respect to research and treatment (B) an evaluation of smoking history; establish procedures for a medical moni- efforts, coordinated with other centers and (C) a physical examination by a qualified toring program for persons exposed to asbes- institutions involved in exemplary mesothe- physician with a doctor-patient relationship tos who have been approved for level I com- lioma research and treatment; with the individual; pensation under section 131. (F) able to facilitate transportation and (D) a chest x-ray read by a certified B-read- (2) PROCEDURES.—The procedures for med- lodging for mesothelioma patients, so as to er as defined under section 121(a)(4); and ical monitoring shall include— enable patients to participate in the newest (E) pulmonary function testing as defined (A) specific medical tests to be provided to developing treatment protocols, and to en- under section 121(a)(13). eligible individuals and the periodicity of able the centers to recruit patients in num- (4) FREQUENCY.—The Administrator shall those tests, which shall initially be provided bers sufficient to conduct necessary clinical establish the frequency with which medical every 3 years and include— trials; and screening shall be provided or be made avail- (i) administration of a health evaluation (G) nonprofit hospitals, universities, or able to eligible individuals, which shall be and work history questionnaire; medical or research institutions incor- not less than every 5 years. (ii) physical examinations, including blood porated or organized in the United States. (5) PROVISION OF SERVICES.—The Adminis- pressure measurement, chest examination, ESOTHELIOMA REGISTRY AND TISSUE trator shall provide medical screening to eli- and examination for clubbing; (c) M BANK.— gible individuals directly or by contract with (iii) AP and lateral chest x-ray; and (1) ESTABLISHMENT.—The Administrator another agency of the Federal Government, (iv) spirometry performed according to shall make available $1,000,000 from the with State or local governments, or with pri- ATS standards; vate providers of medical services. The Ad- Fund, and the Director of the National Insti- (B) qualifications of medical providers who ministrator shall establish strict qualifica- tutes of Health shall make available are to provide the tests required under sub- tions for the providers of such services, and $1,000,000 from amounts available to the Di- paragraph (A); and shall periodically audit the providers of serv- rector, for each of fiscal years 2006 through (C) administrative provisions for reim- ices under this subsection, to ensure their in- 2015 for the establishment, maintenance, and bursement from the Fund of the costs of tegrity, high degree of competence, and com- operation of a National Mesothelioma Reg- monitoring eligible claimants, including the pliance with all applicable technical and pro- istry to collect data regarding symptoms, costs associated with the visits of the claim- fessional standards. No provider of medical pathology, evaluation, treatment, outcomes, ants to physicians in connection with med- screening services may have earned more and quality of life and a Tissue Bank to in- ical monitoring, and with the costs of per- than 15 percent of their income from the pro- clude the pre- and post-treatment blood forming and analyzing the tests. vision of services of any kind in connection (f) CONTRACTS.—The Administrator may (serum and blood cells) specimens as well as with asbestos litigation in any of the 3 years enter into contracts with qualified program tissue specimens from biopsies and surgery. preceding the date of enactment of this Act. providers that would permit the program Not less than $500,000 of the amount made All contracts with providers of medical providers to undertake large-scale medical available under the preceding sentence in screening services under this subsection screening and medical monitoring programs each fiscal year shall be allocated for the shall contain provisions for reimbursement by means of subcontracts with a network of collection and maintenance of tissue speci- of screening services at a reasonable rate and medical providers, or other health providers. mens. termination of such contracts for cause if (g) REVIEW.—Not later than 5 years after (2) REQUIREMENTS.—The Director of the the Administrator determines that the serv- the date of enactment of this Act, and every National Institutes of Health, with the ad- ice provider fails to meet the qualifications 5 years thereafter, the Administrator shall vice and consent of the Medical Advisory established under this subsection. review, and if necessary update, the proto- Committee, shall conduct a competitive peer (6) LIMITATION OF COMPENSATION FOR SERV- cols and procedures established under this review process to select a site to administer ICES.—The compensation required to be paid section. the Registry and Tissue Bank described in to a provider of medical screening services SEC. 226. NATIONAL MESOTHELIOMA RESEARCH paragraph (1). The Director shall ensure that for such services furnished to an eligible in- AND TREATMENT PROGRAM. the site selected under this paragraph— dividual shall be limited to the amount that (a) IN GENERAL.—There is established the (A) is available to all mesothelioma pa- would be reimbursed at the time of the fur- National Mesothelioma Research and Treat- tients and qualifying physicians throughout nishing of such services under title XVIII of ment Program (referred to in this section as the United States;

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00122 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1257 (B) is subject to all applicable medical and view, publish and provide to Congress a re- bestos Insurers Commission regarding the li- patient privacy laws and regulations; port and recommendations on the results ability of any person to make a payment to (C) is carrying out activities to ensure that achieved and information gained through the the Fund, including a notice of applicable data is accessible via the Internet; and Program, including— subtier assignment under section 204(j), a no- (D) provides data and tissue samples to (1) information on the status of mesothe- tice of financial hardship or inequity deter- qualifying researchers and physicians who lioma as a national health issue, including— mination under section 204(e), a notice of a apply for such data in order to further the (A) annual United States incidence and distributor’s adjustment under section understanding, prevention, screening, diag- death rate information and whether such 204(n), and a notice of insurer participant ob- nosis, or treatment of malignant mesothe- rates are increasing or decreasing; ligation under section 212(b). lioma. (B) the average prognosis; and (b) PERIOD FOR FILING ACTION.—A petition (d) CENTER FOR MESOTHELIOMA EDU- (C) the effectiveness of treatments and for review under subsection (a) shall be filed CATION.— means of prevention; not later than 60 days after a final deter- (1) ESTABLISHMENT.—The Administrator (2) promising advances in mesothelioma mination by the Administrator or the Com- shall make available $1,000,000 from the treatment and research which could be fur- mission giving rise to the action. Any de- Fund, and the Director of the National Insti- ther developed if the Program is reauthor- fendant participant who receives a notice of tutes of Health shall make available ized; and its applicable subtier under section 204(j), a $1,000,000 from amounts available to the Di- (3) a summary of advances in mesothe- notice of financial hardship or inequity de- rector, for each of fiscal years 2006 through lioma treatment made in the 10-year period termination under section 204(e), or a notice 2015 for the establishment, with the advice prior to the report and whether those ad- of a distributor’s adjustment under section and consent of the Medical Advisory Com- vances would justify continuation of the 204(n), shall commence any action within 30 mittee, of a Center for Mesothelioma Edu- Program and whether it should be reauthor- days after a decision on rehearing under sec- cation (referred to in this section as the ized for an additional 10 years. tion 204(j)(10), and any insurer participant ‘‘Center’’) to— (f) SEVERABILITY.—If any provision of this who receives a notice of a payment obliga- (A) promote mesothelioma awareness and Act, or amendment made by this Act, or the tion under section 212(b) shall commence any education; application of such provision or amendment action within 30 days after receiving such (B) assist mesothelioma patients and their to any person or circumstance is held to be notice. The court shall give such action ex- family members in obtaining necessary in- unconstitutional, the remainder of this Act pedited consideration. formation; and (including this section), the amendments SEC. 304. OTHER JUDICIAL CHALLENGES. (C) work with the centers established made by this Act, and the application of the under subsection (b) in advancing mesothe- (a) EXCLUSIVE JURISDICTION.—The United provisions of such to any person or cir- States District Court for the District of Co- lioma research. cumstance shall not be affected thereby. (2) ACTIVITIES.—The Center shall— lumbia shall have exclusive jurisdiction over (g) REGULATIONS.—The Director of the Na- any action for declaratory or injunctive re- (A) educate the public about the new ini- tional Institutes of Health shall promulgate tiatives contained in this section through a lief challenging any provision of this Act. An regulations to provide for the implementa- National Mesothelioma Awareness Cam- action under this section shall be filed not tion of this section. paign; later than 60 days after the date of enact- (B) develop and maintain a Mesothelioma TITLE III—JUDICIAL REVIEW ment of this Act or 60 days after the final ac- Educational Resource Center (referred to in SEC. 301. JUDICIAL REVIEW OF RULES AND REG- tion by the Administrator or the Commis- this section as the ‘‘MERCI’’), that is acces- ULATIONS. sion giving rise to the action, whichever is sible via the Internet, to provide mesothe- (a) EXCLUSIVE JURISDICTION.—The United later. lioma patients, family members, and front- States Court of Appeals for the District of (b) DIRECT APPEAL.—A final decision in the line physicians with comprehensive, current Columbia Circuit shall have exclusive juris- action shall be reviewable on appeal directly information on mesothelioma and its treat- diction over any action to review rules or to the Supreme Court of the United States. ment, as well as on the existence of, and gen- regulations promulgated by the Adminis- Such appeal shall be taken by the filing of a eral claim procedures for the Asbestos Injury trator or the Asbestos Insurers Commission notice of appeal within 30 days, and the fil- Claims Resolution Fund; under this Act. ing of a jurisdictional statement within 60 (C) through the MERCI and otherwise, edu- (b) PERIOD FOR FILING PETITION.—A peti- days, of the entry of the final decision. cate mesothelioma patients, family mem- tion for review under this section shall be (c) EXPEDITED PROCEDURES.—It shall be the bers, and front-line physicians about, and en- filed not later than 60 days after the date no- duty of the United States District Court for courage such individuals to participate in, tice of such promulgation appears in the the District of Columbia and the Supreme the centers established under subsection (b), Federal Register. Court of the United States to advance on the the Registry and the Tissue Bank; (c) EXPEDITED PROCEDURES.—The United docket and to expedite to the greatest pos- (D) complement the research efforts of the States Court of Appeals for the District of sible extent the disposition of the action and centers established under subsection (b) by Columbia shall provide for expedited proce- appeal. awarding competitive, peer-reviewed grants dures for reviews under this section. SEC. 305. STAYS, EXCLUSIVITY, AND CONSTITU- for the training of clinical specialist fellows SEC. 302. JUDICIAL REVIEW OF AWARD DECI- TIONAL REVIEW. in mesothelioma, and for highly innovative, SIONS. (a) NO STAYS.— experimental or pre-clinical research; and (a) IN GENERAL.—Any claimant adversely (1) PAYMENTS.—No court may issue a stay (E) conduct an annual International Meso- affected or aggrieved by a final decision of of payment by any party into the Fund pend- thelioma Symposium. the Administrator awarding or denying com- ing its final judgment. (3) REQUIREMENTS.—The Center shall— pensation under title I may petition for judi- (2) LEGAL CHALLENGES.—No court may (A) be a nonprofit corporation under sec- cial review of such decision. Any petition for issue a stay or injunction pending final judi- tion 501(c)(3) of the Internal Revenue Code of review under this section shall be filed with- cial action, including the exhaustion of all 1986; in 90 days of the issuance of a final decision appeals, on a legal challenge to this Act or (B) be a separate entity from and not an af- of the Administrator. any portion of this Act. filiate of any hospital, university, or medical (b) EXCLUSIVE JURISDICTION.—A petition (b) EXCLUSIVITY OF REVIEW.—An action of or research institution; and for review may only be filed in the United the Administrator or the Asbestos Insurers (C) demonstrate a history of program States Court of Appeals for the circuit in Commission for which review could have spending that is devoted specifically to the which the claimant resides at the time of the been obtained under section 301, 302, or 303 mission of extending the survival of current issuance of the final order. shall not be subject to judicial review in any and future mesothelioma patients, including (c) STANDARD OF REVIEW.—The court shall other proceeding. a history of soliciting, peer reviewing uphold the decision of the Administrator un- (c) CONSTITUTIONAL REVIEW.— through a competitive process, and funding less the court determines, upon review of the (1) IN GENERAL.—The United States Dis- research grant applications relating to the record as a whole, that the decision is not trict Court for the District of Columbia shall detection, prevention, treatment, and cure of supported by substantial evidence, is con- have exclusive jurisdiction over any action mesothelioma. trary to law, or is not in accordance with challenging the constitutionality of any pro- (4) CONTRACTS FOR OVERSIGHT.—The Direc- procedure required by law. vision or application of this Act. The fol- tor of the National Institutes of Health may (d) EXPEDITED PROCEDURES.—The United lowing rules shall apply: enter into contracts with the Center for the States Court of Appeals shall provide for ex- (A) The action shall be filed in the United selection and oversight of the centers estab- pedited procedures for reviews under this States District Court for the District of Co- lished under subsection (b), or selection of section. lumbia and shall be heard by a 3-judge court the director of the Registry and the Tissue SEC. 303. JUDICIAL REVIEW OF PARTICIPANTS’ convened under section 2284 of title 28, Bank under subsection (c) and oversight of ASSESSMENTS. United States Code. the Registry and the Tissue Bank. (a) EXCLUSIVE JURISDICTION.—The United (B) A final decision in the action shall be (e) REPORT AND RECOMMENDATIONS.—Not States Court of Appeals for the District of reviewable only by appeal directly to the Su- later than September 30, 2015, The Director Columbia Circuit shall have exclusive juris- preme Court of the United States. Such ap- of the National Institutes of Health shall, diction over any action to review a final de- peal shall be taken by the filing of a notice after opportunity for public comment and re- termination by the Administrator or the As- of appeal within 10 days, and the filing of a

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00123 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1258 CONGRESSIONAL RECORD — SENATE February 14, 2006 jurisdictional statement within 30 days, ‘‘(B) is subject to a case under this title Asbestos Disease Compensation (referred to after the entry of the final decision. that is pending— in this section as the ‘Administrator’) cer- (C) It shall be the duty of the United ‘‘(i) on the date of enactment of the Fair- tifies in accordance with section States District Court for the District of Co- ness in Asbestos Injury Resolution Act of 106(f)(3)(E)(ii) of the Fairness in Asbestos In- lumbia and the Supreme Court of the United 2006; or jury Resolution Act of 2006 that the Fund is States to advance on the docket and to expe- ‘‘(ii) at any time during the 1-year period fully operational and paying all valid asbes- dite to the greatest possible extent the dis- preceding the date of enactment of that Act. tos claims at a reasonable rate, any trust position of the action and appeal. ‘‘(2) TIER I DEBTORS.—A debtor that has transferring assets under clause (ii) shall (2) REPAYMENT TO ASBESTOS TRUST AND been assigned to Tier I under section 202 of transfer all remaining assets in such trust to CLASS ACTION TRUST.—If the transfer of the the Fairness in Asbestos Injury Resolution the Fund. The transfer required by this assets of any asbestos trust of a debtor or Act of 2006, shall make payments in accord- clause shall not include any trust assets any class action trust (or this Act as a ance with sections 202 and 203 of that Act. needed to pay— whole) is held to be unconstitutional or oth- ‘‘(3) TREATMENT OF PAYMENT OBLIGA- ‘‘(I) previously incurred expenses; or erwise unlawful, the Fund shall transfer the TIONS.—All payment obligations of a debtor ‘‘(II) claims determined to be eligible for remaining balance of such assets (deter- under sections 202 and 203 of the Fairness in compensation under clause (vi). mined under section 405(f)(1)(A)(iii)) back to Asbestos Injury Resolution Act of 2006 ‘‘(iv) Except as provided under subpara- the appropriate asbestos trust or class action shall— graph (B), the Administrator of the Fund trust within 90 days after final judicial ac- ‘‘(A) constitute costs and expenses of ad- shall accept any assets transferred under tion on the legal challenge, including the ex- ministration of a case under section 503 of clauses (ii) or (iii) and utilize them for any haustion of all appeals. this title; purposes for the Fund under section 221 of ‘‘(B) notwithstanding any case pending the Fairness in Asbestos Injury Resolution TITLE IV—MISCELLANEOUS PROVISIONS under this title, be payable in accordance Act of 2006, including the payment of claims SEC. 402. EFFECT ON BANKRUPTCY LAWS. with section 202 of that Act; for awards under such Act to beneficiaries of (a) NO AUTOMATIC STAY.—Section 362(b) of ‘‘(C) not be stayed; the trust from which the assets were trans- title 11, United States Code, is amended— ‘‘(D) not be affected as to enforcement or ferred. (1) in paragraph (17), by striking ‘‘or’’ at collection by any stay or injunction of any ‘‘(v) Notwithstanding any other provision the end; court; and of Federal or State law, no liability of any (2) in paragraph (18), by striking the period ‘‘(E) not be impaired or discharged in any kind may be imposed on a trustee of a trust at the end and inserting ‘‘; or’’; and current or future case under this title.’’. for transferring assets to the Fund in accord- (3) by inserting after paragraph (18) the fol- (f) TREATMENT OF TRUSTS.—Section 524 of ance with clause (i). lowing: title 11, United States Code, as amended by ‘‘(vi) Any trust transferring assets under ‘‘(19) under subsection (a) of this section of this Act, is amended by adding at the end clause (ii) shall be subject to the following the enforcement of any payment obligations the following: requirements: under section 204 of the Fairness in Asbestos ‘‘(j) ASBESTOS TRUSTS.— ‘‘(I) The trust may continue to process as- Injury Resolution Act of 2006, against a debt- ‘‘(1) IN GENERAL.—A trust shall assign a bestos claims, make eligibility determina- or, or the property of the estate of a debtor, portion of the corpus of the trust to the As- tions, and pay claims in a manner consistent that is a participant (as that term is defined bestos Injury Claims Resolution Fund (re- with this clause if a claimant— in section 3 of that Act).’’. ferred to in this subsection as the ‘Fund’) as ‘‘(aa) has a pending asbestos claim as of (b) ASSUMPTION OF EXECUTORY CONTRACT.— established under the Fairness in Asbestos the date of enactment of the Fairness in As- Section 365 of title 11, United States Code, is Injury Resolution Act of 2006 if the trust bestos Injury Resolution Act of 2006; amended by adding at the end the following: qualifies as a ‘trust’ under section 201 of that ‘‘(bb) provides to the trust a copy of a bind- ‘‘(p) If a debtor is a participant (as that Act. ing election submitted to Administrator term is defined in section 3 of the Fairness in ‘‘(2) TRANSFER OF TRUST ASSETS.— waiving the right to secure compensation Asbestos Injury Resolution Act of 2006), the ‘‘(A) IN GENERAL.— under section 106(f)(2) of the Fairness in As- trustee shall be deemed to have assumed all ‘‘(i) Except as provided under clause (ii) of bestos Injury Resolution Act of 2006, unless executory contracts entered into by the par- this subparagraph and subparagraphs (B), the claimant is permitted under section ticipant under section 204 of that Act. The (C), and (E), the assets in any trust estab- 106(f)(2)(B) of such Act to seek a judgment or trustee may not reject any such executory lished to provide compensation for asbestos order for monetary damages from a Federal contract.’’. claims (as defined in section 3 of the Fair- or State court; (c) ALLOWED ADMINISTRATIVE EXPENSES.— ness in Asbestos Injury Resolution Act of ‘‘(cc) meets the requirements for com- Section 503 of title 11, United States Code, is 2006) shall be transferred to the Fund not pensation under the distribution plan for the amended by adding at the end the following: later than 90 days after the date of enact- ‘‘(c)(1) Claims or expenses of the United trust as of the date of enactment of the Fair- ment of the Fairness in Asbestos Injury Res- States, the Attorney General, or the Admin- ness in Asbestos Injury Resolution Act of olution Act of 2006 or 30 days following fund- istrator (as that term is defined in section 3 2006; ing of a trust established under a reorganiza- of the Fairness in Asbestos Injury Resolu- ‘‘(dd) for any non-malignant condition sat- tion plan subject to section 202(c) of that tion Act of 2006) based upon the asbestos pay- isfies the medical criteria under the distribu- Act. Except as provided under subparagraph tion plan for the trust that is most nearly ment obligations of a debtor that is a Partic- (B), the Administrator of the Fund shall ac- equivalent to the medical criteria described ipant (as that term is defined in section 3 of cept such assets and utilize them for any in section 121(d)(2) of the Fairness in Asbes- that Act), shall be paid as an allowed admin- purposes of the Fund under section 221 of tos Injury Resolution Act of 2006, except istrative expense. The debtor shall not be en- such Act, including the payment of claims that, notwithstanding any provision of the titled to either notice or a hearing with re- for awards under such Act to beneficiaries of distribution plan of the trust to the con- spect to such claims. ‘‘(2) For purposes of paragraph (1), the the trust from which the assets were trans- trary, the trust shall not accept the results term ‘asbestos payment obligation’ means ferred. of a DLCO test (as such test is defined in sec- any payment obligation under title II of the ‘‘(ii) Notwithstanding clause (i), and except tion 121(a) of the Fairness in Asbestos Injury Fairness in Asbestos Injury Resolution Act as provided under subparagraphs (B), (C), and Resolution Act of 2006) for the purpose of of 2006.’’. (E), any trust established to provide com- demonstrating respiratory impairment; and (d) NO DISCHARGE.—Section 523 of title 11, pensation for asbestos claims (as defined in ‘‘(ee) for any of the cancers listed in sec- United States Code, is amended by adding at section 3 of the Fairness in Asbestos Injury tion 121(d)(6) of the Fairness in Asbestos In- the end the following: Resolution Act of 2006), other than a trust jury Resolution Act of 2006 does not seek, ‘‘(f) A discharge under section 727, 1141, established under a reorganization plan sub- and the trust does not pay, any compensa- 1228, or 1328 of this title does not discharge ject to section 202(c) of that Act, shall trans- tion until such time as the Institute of Medi- any debtor that is a participant (as that fer the assets in such trust to the Fund as cine finds that there is a causal relationship term is defined in section 3 of the Fairness in follows: between asbestos exposure and such cancer, Asbestos Injury Resolution Act of 2006) of ‘‘(I) In the case of a trust established on or in which case such claims may be paid if the debtor’s payment obligations assessed before December 31, 2005, such trust shall such claims otherwise qualify for compensa- against the participant under title II of that transfer 90 percent of the assets in such trust tion under the distribution plan of the trust Act.’’. to the Fund not later than 90 days after the as of the date of enactment of the Fairness (e) PAYMENT.—Section 524 of title 11, date of enactment of the Fairness in Asbes- in Asbestos Injury Resolution Act of 2006. United States Code, is amended by adding at tos Injury Resolution Act of 2006. ‘‘(II) The trust shall not accept medical the end the following: ‘‘(II) In the case of a trust established after evidence from any physician, medical facil- ‘‘(i) PARTICIPANT DEBTORS.— December 31, 2005, such trust shall transfer ity, or laboratory whose evidence would be ‘‘(1) IN GENERAL.—Paragraphs (2) and (3) 88 percent of the assets in such trust to the not be accepted as evidence— shall apply to a debtor who— Fund not later than 90 days after the date of ‘‘(aa) under the Manville Trust as of the ‘‘(A) is a participant that has made prior enactment of the Fairness in Asbestos Injury date of enactment of the Fairness in Asbes- asbestos expenditures (as such terms are de- Resolution Act of 2006. tos Injury Resolution Act of 2006; or fined in the Fairness in Asbestos Injury Res- ‘‘(iii) Not later than 90 days after the date ‘‘(bb) by the Administrator under section olution Act of 2006); and on which the Administrator of the Office of 115(a)(2) of such Act.

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00124 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1259 ‘‘(III) The trust shall not amend its sched- Administrator of the Fund to sell assets or otherwise, and shall be entitled to inter- uled payment amount or payment percent- transferred to the Fund under subparagraph vene as of right in any action brought by any age as in effect on the date of enactment of (A). other party seeking interpretation, applica- the Fairness in Asbestos Injury Resolution ‘‘(E) LIQUIDATED CLAIMS.—Except as spe- tion, or invalidation of this subsection. Any Act of 2006. cifically provided in this subparagraph, all order denying relief that would facilitate ‘‘(IV) The trust shall not amend its eligi- asbestos claims against a trust are super- prompt compliance with the transfer provi- bility criteria after the date of enactment of seded and preempted as of the date of enact- sions of this subsection shall be subject to the Fairness in Asbestos Injury Resolution ment of the Fairness in Asbestos Injury Res- immediate appeal under section 304 of the Act of 2006, except to conform any criteria in olution Act of 2006, and a trust shall not Fairness in Asbestos Injury Resolution Act any category under the distribution plan of make any payment relating to asbestos of 2006. the trust with related criteria in a related claims after that date. If, in the ordinary (g) NO AVOIDANCE OF TRANSFER.—Section category under section 121 of the Fairness in course and the normal and usual administra- 546 of title 11, United States Code, is amend- Asbestos Injury Resolution Act of 2006. tion of the trust consistent with past prac- ed by adding at the end the following: ‘‘(V) The trust shall notify the Adminis- tices, a trust had before the date of enact- ‘‘(h) Notwithstanding the rights and pow- trator of the Fund of any claim determined ment of the Fairness in Asbestos Injury Res- ers of a trustee under sections 544, 545, 547, to be eligible for compensation after the date olution Act of 2006, made all determinations 548, 549, and 550 of this title, if a debtor is a of enactment of the Fairness in Asbestos In- necessary to entitle an individual claimant participant (as that term is defined in sec- jury Resolution Act of 2006, and the amount to a noncontingent cash payment from the tion 3 of the Fairness in Asbestos Injury Res- of any such compensation awarded to the trust, the trust shall (i) make any lump-sum olution Act of 2006), the trustee may not claimant of such claim. The notification re- cash payment due to that claimant, and (ii) avoid a transfer made by the debtor under its quired by this subclause shall be made in make or provide for all remaining non- payment obligations under section 202 or 203 such form as the Administrator shall re- contingent payments on any award being of that Act.’’. quire, and not later than 15 days after the paid or scheduled to be paid on an install- (h) CONFIRMATION OF PLAN.—Section 1129(a) date the determination is made. ment basis, in each case only to the same ex- of title 11, United States Code, is amended by ‘‘(VI) The trust shall not pay any claim tent that the trust would have made such adding at the end the following: without a certification by a claimant, sub- cash payments in the ordinary course and ‘‘(14) If the debtor is a participant (as that ject to the penalties described in the Fair- consistent with past practices before enact- term is defined in section 3 of the Fairness in ness in Asbestos Injury Resolution Act of ment of that Act. A trust shall not make any Asbestos Injury Resolution Act of 2006), the 2006, stating the amount of collateral source payment in respect of any alleged contingent plan provides for the continuation after its compensation that such claimant has re- right to recover any greater amount than effective date of payment of all payment ob- ceived, or is entitled to receive, under sec- the trust had already paid, or had completed ligations under title II of that Act.’’. tion 134 of the Fairness in Asbestos Injury all determinations necessary to pay, to a (i) EFFECT ON INSURANCE RECEIVERSHIP Resolution Act of 2006. In the event that col- claimant in cash in accordance with its ordi- PROCEEDINGS.— lateral source compensation exceeds the nary distribution procedures in effect as of (1) LIEN.—In an insurance receivership pro- amount that a claimant would be paid in the June 1, 2003. ceeding involving a direct insurer, reinsurer category under that Act that is most nearly ‘‘(3) INJUNCTION.— or runoff participant, there shall be a lien in similar to the claimant’s claim under the ‘‘(A) IN GENERAL.—Any injunction issued as favor of the Fund for the amount of any as- distribution plan of the trust, the aggregate part of the formation of a trust described in sessment and any such lien shall be given value of the awards received by the claimant paragraph (1) shall remain in full force and priority over all other claims against the shall be reduced pro rata so that the claim- effect. No court, Federal or State, may en- participant in receivership, except for the ant’s total compensation does not exceed join the transfer of assets by a trust to the expenses of administration of the receiver- what would be paid for such a condition Fund in accordance with this subsection ship and the perfected claims of the secured under the Fairness in Asbestos Injury Reso- pending resolution of any litigation chal- creditors. Any State law that provides for lution Act of 2006, excluding any adjust- lenging such transfer or the validity of this priorities inconsistent with this provision is ments under section 131(b)(3) and (4) of that subsection or of any provision of the Fair- preempted by this Act. Act. ness in Asbestos Injury Resolution Act of (2) PAYMENT OF ASSESSMENT.—Payment of ‘‘(VII) Upon finding that the trust has 2006, and an interlocutory order denying such any assessment required by this Act shall breached any condition or conditions of this relief shall not be subject to immediate ap- not be subject to any automatic or judicially clause, the Administrator shall require the peal under section 1291(a) of title 28. entered stay in any insurance receivership immediate payment of remaining trust as- ‘‘(B) AVAILABILITY OF FUND ASSETS.—Not- proceeding. This Act shall preempt any sets into the Fund in accordance with sec- withstanding any other provision of law, State law requiring that payments by a di- tion 402(f) of the Fairness in Asbestos Injury once such a transfer has been made, the as- rect insurer, reinsurer or runoff participant Resolution Act of 2006. The Administrator sets of the Fund shall be available to satisfy in an insurance receivership proceeding be shall be entitled to an injunction against any final judgment entered in such an action approved by a court, receiver or other per- further payments of nonliquidated claims and such transfer shall no longer be subject son. Payments of assessments by any direct from the assets of the trust during the pend- to any appeal or review— insurer or reinsurer participant under this ency of any dispute regarding the findings of ‘‘(i) declaring that the transfer effected a Act shall not be subject to the avoidance noncompliance by the Administrator. The taking of a right or property for which an in- powers of a receiver or a court in or relating court in which any action to enforce the ob- dividual is constitutionally entitled to just to an insurance receivership proceeding. ligations of the trust is pending shall afford compensation; or (j) STANDING IN BANKRUPTCY PRO- the action expedited consideration. ‘‘(ii) requiring the transfer back to a trust CEEDINGS.—The Administrator shall have ‘‘(B) AUTHORITY TO REFUSE ASSETS.—The of any or all assets transferred by that trust standing in any bankruptcy case involving a Administrator of the Fund may refuse to ac- to the Fund. debtor participant. No bankruptcy court cept any asset that the Administrator deter- ‘‘(4) JURISDICTION.—Solely for purposes of may require the Administrator to return mines may create liability for the Fund in implementing this subsection, personal ju- property seized to satisfy obligations to the excess of the value of the asset. risdiction over every covered trust, the Fund. ‘‘(C) ALLOCATION OF TRUST ASSETS.—If a trustees thereof, and any other necessary SEC. 403. EFFECT ON OTHER LAWS AND EXISTING trust under subparagraph (A) has bene- party, and exclusive subject matter jurisdic- CLAIMS. ficiaries with claims that are not asbestos tion over every question arising out of or re- (a) EFFECT ON FEDERAL AND STATE LAW.— claims, the assets transferred to the Fund lated to this subsection, shall be vested in The provisions of this Act shall supersede under subparagraph (A) shall not include as- the United States District Court for the Dis- any Federal or State law insofar as such law sets allocable to such beneficiaries. The trict of Columbia. Notwithstanding any may relate to any asbestos claim, including trustees of any such trust shall determine other provision of law, including section 1127 any claim described under subsection (e)(2). the amount of such trust assets to be re- of this title, that court may make any order (b) EFFECT ON SILICA CLAIMS.— served for the continuing operation of the necessary and appropriate to facilitate (1) IN GENERAL.— trust in processing and paying claims that prompt compliance with this subsection, in- (A) RULE OF CONSTRUCTION.—Nothing in are not asbestos claims. The trustees shall cluding assuming jurisdiction over and modi- this Act shall be construed to preempt, bar, demonstrate to the satisfaction of the Ad- fying, to the extent necessary, any applica- or otherwise preclude any personal injury ministrator, or by clear and convincing evi- ble confirmation order or other order with claim attributable to exposure to silica as to dence in a proceeding brought before the continuing and prospective application to a which the plaintiff— United States District Court for the District covered trust. The court may also resolve (i) pleads with particularity and estab- of Columbia in accordance with paragraph any related challenge to the constitu- lishes by a preponderance of evidence either (4), that the amount reserved is properly al- tionality of this subsection or of its applica- that— locable to claims other than asbestos claims. tion to any trust, trustee, or individual (I) no claim has been asserted or filed by or ‘‘(D) SALE OF FUND ASSETS.—The invest- claimant. The Administrator of the Fund with respect to the exposed person in any ment requirements under section 222 of the may bring an action seeking such an order or forum for any asbestos-related condition and Fairness in Asbestos Injury Resolution Act modification, under the standards of rule the exposed person (or another claiming on of 2006 shall not be construed to require the 60(b) of the Federal Rules of Civil Procedure behalf of or through the exposed person) is

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00125 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1260 CONGRESSIONAL RECORD — SENATE February 14, 2006 not eligible for any monetary award under surer, the settling defendant or the settling tion, development, inspection, advertising, this Act; or insurer; and marketing, or installation of asbestos; or (II)(aa) the exposed person suffers or has (II)(aa) the specific individual plaintiff, or (II) asserting any conspiracy, act, conduct, suffered a functional impairment that was the individual’s immediate relatives; or statement, omission, or failure to detect, caused by exposure to silica; and (bb) an authorized legal representative act- disclose, or warn relating to the presence or (bb) asbestos exposure was not a substan- ing on behalf of the plaintiff where the plain- health effects of asbestos or the use, sale, tial contributing factor to such functional tiff is incapacitated and the settlement distribution, manufacture, production, de- impairment; and agreement is signed by that authorized legal velopment, inspection, advertising, mar- (ii) satisfies the requirements of paragraph representative; keting, or installation of asbestos, asserted (2). (ii) the settlement agreement contains an as or in a direct action against an insurer or (B) PREEMPTION.—Claims attributable to express obligation by the settling defendant reinsurer based upon any theory, statutory, exposure to silica that fail to meet the re- or settling insurer to make a future direct contract, tort, or otherwise; or quirements of subparagraph (A) shall be pre- monetary payment or payments in a fixed (iv) by any third party, and premised on empted by this Act. amount or amounts to the individual plain- any theory, allegation, or cause of action, (2) REQUIRED EVIDENCE.— tiff; and for reimbursement of healthcare costs alleg- (A) IN GENERAL.—In any claim to which (iii) within 30 days after the date of enact- edly associated with the use of or exposure paragraph (1) applies, the initial pleading ment of this Act, or such shorter time period to asbestos, whether such claim is asserted (or, for claims pending on the date of enact- specified in the settlement agreement, the directly, indirectly or derivatively. ment of this Act, an amended pleading to be plaintiff has fulfilled all conditions to pay- (B) EXCEPTIONS.—Subparagraph (A) (ii) and filed within 60 days after such date, but not ment under the settlement agreement. (iii) shall not apply to claims against par- later than 60 days before trial, shall plead (B) BANKRUPTCY-RELATED AGREEMENTS.— ticipants by persons— with particularity the elements of subpara- The exception set forth in this paragraph (i) with whom the participant is in privity graph (A)(i)(I) or (II) and shall be accom- shall not apply to any bankruptcy-related of contract; panied by the information described under agreement. (ii) who have received an assignment of in- subparagraph (B)(i) through (iv). (C) COLLATERAL SOURCE.—Any settlement surance rights not otherwise voided by this (B) PLEADINGS.—If the claim pleads the payment under this section is a collateral Act; or elements of paragraph (1)(A)(i)(II) and by the source if the plaintiff seeks recovery from (iii) who are beneficiaries covered by the information described under clauses (i) the Fund. express terms of a contract with that partic- through (iv) of this subparagraph if the (D) ABROGATION.—Nothing in subparagraph ipant. claim pleads the elements of paragraph (A) shall abrogate a settlement agreement (3) PREEMPTION.—Any action asserting an (1)(A)(i)(I)— otherwise satisfying the requirements of asbestos claim (including a claim described (i) admissible evidence, including at a min- that subparagraph if such settlement agree- in paragraph (2)) in any Federal or State imum, a B-reader’s report, the underlying x- ment expressly anticipates the enactment of court is preempted by this Act. ray film and such other evidence showing this Act and provides for the effects of this (4) DISMISSAL.—No judgment other than a that the claim may be maintained and is not Act. judgment of dismissal may be entered in any (E) HEALTH CARE INSURANCE OR EXPENSES such action, including an action pending on preempted under paragraph (1); SETTLEMENTS.—Nothing in this Act shall ab- appeal, or on petition or motion for discre- (ii) notice of any previous lawsuit or claim rogate or terminate an otherwise fully en- tionary review, on or after the date of enact- for benefits in which the exposed person, or forceable settlement agreement which was ment of this Act. A court may dismiss any another claiming on behalf of or through the executed before the date of enactment of this such action on its motion. If the court denies injured person, asserted an injury or dis- Act directly by the settling defendant or the the motion to dismiss, it shall stay further ability based wholly or in part on exposure settling insurer and a specific named plain- proceedings until final disposition of any ap- to asbestos; tiff to pay the health care insurance or peal taken under this Act. (iii) if known by the plaintiff after reason- health care expenses of the plaintiff. (5) REMOVAL.— able inquiry by the plaintiff or his represent- (d) EXCLUSIVE REMEDY.— (A) IN GENERAL.—If an action in any State ative, the history of the exposed person’s ex- (1) IN GENERAL.—Except as provided under court under paragraph (3) is preempted, posure, if any, to asbestos; and section 524(j)(3) of title 11, United States barred, or otherwise precluded under this (iv) copies of all medical and laboratory re- Code, as amended by this Act, the remedies Act, and not dismissed, or if an order entered ports pertaining to the exposed person that provided under this Act shall be the exclu- after the date of enactment of this Act pur- refer to asbestos or asbestos exposure. sive remedy for any asbestos claim, includ- porting to enter judgment or deny review is (3) STATUTE OF LIMITATIONS.—In general, ing any claim described in subsection (e)(2), not rescinded and replaced with an order of the statute of limitations for a silica claim under any Federal or State law. dismissal within 30 days after the filing of a shall be governed by applicable State law, (e) BAR ON ASBESTOS CLAIMS.— motion by any party to the action advising except that in any case under this sub- (1) IN GENERAL.—No asbestos claim (includ- the court of the provisions of this Act, any section, the statute of limitations shall only ing any claim described in paragraph (2)) party may remove the case to the district start to run when the plaintiff becomes im- may be pursued, and no pending asbestos court of the United States for the district in paired. claim may be maintained, in any Federal or which such action is pending. (c) SUPERSEDING PROVISIONS.— State court, except as provided under section (B) TIME LIMITS.—For actions originally (1) IN GENERAL.—Except as provided under 524(j)(3) of title 11, United States Code, as filed after the date of enactment of this Act, paragraph (3) and section 106(f), any agree- amended by this Act. the notice of removal shall be filed within ment, understanding, or undertaking by any (2) CERTAIN SPECIFIED CLAIMS.— the time limits specified in section 1441(b) of person or affiliated group with respect to the (A) IN GENERAL.—Subject to section 404 (d) title 28, United States Code. treatment of any asbestos claim, including a and (e)(3) of this Act, no claim may be (C) PROCEDURES.—The procedures for re- claim described under subsection (e)(2), that brought or pursued in any Federal or State moval and proceedings after removal shall be requires future performance by any party, court or insurance receivership proceeding— in accordance with sections 1446 through 1450 insurer of such party, settlement adminis- (i) relating to any default, confessed or of title 28, United States Code, except as may trator, or escrow agent shall be superseded stipulated judgment on an asbestos claim if be necessary to accommodate removal of any in its entirety by this Act. the judgment debtor expressly agreed, in actions pending (including on appeal) on the (2) NO FORCE OR EFFECT.—Except as pro- writing or otherwise, not to contest the date of enactment of this Act. vided under paragraph (3), any such agree- entry of judgment against it and the plain- (D) REVIEW OF REMAND ORDERS.— ment, understanding, or undertaking by any tiff expressly agreed, in writing or otherwise, (i) IN GENERAL.—Section 1447 of title 28, such person or affiliated group shall be of no to seek satisfaction of the judgment only United States Code, shall apply to any re- force or effect, and no person shall have any against insurers or in bankruptcy; moval of a case under this section, except rights or claims with respect to any such (ii) relating to the defense, investigation, that notwithstanding subsection (d) of that agreement, understanding, or undertaking. handling, litigation, settlement, or payment section, a court of appeals may accept an ap- (3) EXCEPTION.— of any asbestos claim by any participant, in- peal from an order of a district court grant- (A) IN GENERAL.—Except as provided in sec- cluding claims for bad faith or unfair or de- ing or denying a motion to remand an action tion 202(f), nothing in this Act shall abrogate ceptive claims handling or breach of any du- to the State court from which it was re- a binding and legally enforceable written ties of good faith; or moved if application is made to the court of settlement agreement between any defend- (iii) arising out of or relating to the asbes- appeals not less than 30 days after entry of ant participant or its insurer and a specific tos-related injury of any individual and— the order. named plaintiff with respect to the settle- (I) asserting any conspiracy, concert of ac- (ii) TIME PERIOD FOR JUDGMENT.—If the ment of an asbestos claim of the plaintiff if— tion, aiding or abetting, act, conduct, state- court of appeals accepts an appeal under (i) before the date of enactment of this ment, misstatement, undertaking, publica- clause (i), the court shall complete all action Act, the settlement agreement was executed tion, omission, or failure to detect, speak, on such appeal, including rendering judg- by— disclose, publish, or warn relating to the ment, not later than 180 days after the date (I) the authorized legal representative act- presence or health effects of asbestos or the on which such appeal was filed, unless an ex- ing on behalf of the settling defendant or in- use, sale, distribution, manufacture, produc- tension is granted under clause (iii).

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(iii) EXTENSION OF TIME PERIOD.—The court Year After Enactment Applicable group’s scheduled payment amount, as meas- of appeals may grant an extension of the 180- In Which Defendant Percentage: ured by the individual defendant partici- day period described in clause (ii) if— Participant’s Fund- pant’s percentage share of the affiliated (I) all parties to the proceeding agree to ing Obligation group’s prior asbestos expenditures. such extension, for any period of time; or Ends: (E) RULE OF CONSTRUCTION.—Notwith- (II) such extension is for good cause shown 11 ...... 62.11 standing any other provision of this section, and in the interests of justice, for a period 12 ...... 59.31 nothing in this Act shall be deemed to erode not to exceed 30 days. 13 ...... 56.94 remaining aggregate products limits of a de- (iv) DENIAL OF APPEAL.—If a final judgment 14 ...... 54.90 fendant participant that can demonstrate by on the appeal under clause (i) is not issued 15 ...... 53.14 a preponderance of the evidence that 75 per- before the end of the period described in 16 ...... 51.60 cent of its prior asbestos expenditures were clause (ii), including any extension under 17 ...... 50.24 made in defense or satisfaction of asbestos clause (iii), the appeal shall be denied. 18 ...... 49.03 claims alleging bodily injury arising exclu- 19 ...... 47.95 (E) JURISDICTION.—The jurisdiction of the sively from the exposure to asbestos at district court shall be limited to— 20 ...... 46.98 premises owned, rented, or controlled by the 21 ...... 46.10 (i) determining whether removal was prop- defendant participant (a ‘‘premises defend- 22 ...... 45.30 er; and ant’’). In calculating such percentage, where 23 ...... 44.57 (ii) determining, based on the evidentiary expenditures were made in defense or satis- 24 ...... 43.90 record, whether the claim presented is pre- faction of asbestos claims alleging bodily in- 25 ...... 43.28 jury due to exposure to the defendant par- empted, barred, or otherwise precluded under 26 ...... 42.71 this Act. ticipant’s products and to asbestos at prem- 27 ...... 42.18 ises owned, rented, or controlled by the de- (6) CREDITS.— 28 ...... 40.82 fendant participant, half of such expendi- (A) IN GENERAL.—If, notwithstanding the 29 ...... 39.42 tures shall be deemed to be for such premises express intent of Congress stated in this sec- (D) REMAINING AGGREGATE PRODUCTS LIM- exposures. If a defendant participant estab- tion, any court finally determines for any ITS.—The term ‘‘remaining aggregate prod- lishes itself as a premises defendant, 75 per- reason that an asbestos claim is not barred ucts limits’’ means aggregate limits that under this subsection and is not subject to cent of the payments by such defendant par- apply to insurance coverage granted under ticipant shall erode coverage limits, if any, the exclusive remedy or preemption provi- the ‘‘products hazard’’, ‘‘completed oper- sions of this section, then any participant re- applicable to premises liabilities under ap- ations hazard’’, or ‘‘Products—Completed plicable law. quired to satisfy a final judgment executed Operations Liability’’ in any comprehensive with respect to any such claim may elect to (3) METHOD OF EROSION.— general liability policy issued between cal- (A) ALLOCATION.—The amount of erosion receive a credit against any assessment owed endar years 1940 and 1986 to cover injury to the Fund equal to the amount of the pay- allocated to each defendant participant shall which occurs in any State, as reduced by— be allocated among periods in which policies ment made with respect to such executed (i) any existing impairment of such aggre- judgment. with remaining aggregate product limits are gate limits as of the date of enactment of available to that defendant participant pro (B) REQUIREMENTS.—The Administrator this Act; and rata by policy period, in ascending order by shall require participants seeking credit (ii) the resolution of claims for reimburse- attachment point. under this paragraph to demonstrate that ment or coverage of liability or paid or in- (B) OTHER EROSION METHODS.— the participant— curred loss for which notice was provided to (i) IN GENERAL.—Notwithstanding subpara- (i) timely pursued all available remedies, the insurer before the date of enactment of graph (A), the method of erosion of any re- including remedies available under this para- this Act. maining aggregate products limits which are graph to obtain dismissal of the claim; and (E) SCHEDULED PAYMENT AMOUNTS.—The subject to— (ii) notified the Administrator at least 20 term ‘‘scheduled payment amounts’’ means (I) a coverage-in-place or settlement agree- days before the expiration of any period the future payment obligation to the Fund ment between a defendant participant and 1 within which to appeal the denial of a mo- under this Act from a defendant participant or more insurance participants as of the date tion to dismiss based on this section. in the amount established under sections 203 of enactment; or (C) INFORMATION.—The Administrator may and 204. (II) a final and nonappealable judgment as require a participant seeking credit under (F) UNEARNED EROSION AMOUNT.—The term of the date of enactment or resulting from a this paragraph to furnish such further infor- ‘‘unearned erosion amount’’ means the dif- claim for coverage or reimbursement pend- mation as is necessary and appropriate to es- ference between the deemed erosion amount ing as of such date, shall be as specified in tablish eligibility for, and the amount of, the and the earned erosion amount. such agreement or judgment with regard to credit. (2) QUANTUM AND TIMING OF EROSION.— erosion applicable to such insurance partici- (D) INTERVENTION.—The Administrator (A) EROSION UPON ENACTMENT.—The collec- pants’ policies. may intervene in any action in which a cred- tive payment obligations to the Fund of the (ii) REMAINING LIMITS.—To the extent that it may be due under this paragraph. insurer and reinsurer participants as as- a final nonappealable judgment or settle- SEC. 404. EFFECT ON INSURANCE AND REINSUR- sessed by the Administrator shall be deemed ment agreement to which an insurer partici- ANCE CONTRACTS. as of the date of enactment of this Act to pant and a defendant participant are parties (a) EROSION OF INSURANCE COVERAGE LIM- erode remaining aggregate products limits in effect as of the date of enactment of this ITS.— available to a defendant participant only in Act extinguished a defendant participant’s (1) DEFINITIONS.—In this section, the fol- an amount of 38.1 percent of each defendant right to seek coverage for asbestos claims lowing definitions shall apply: participant’s scheduled payment amount. under an insurer participant’s policies, any (A) DEEMED EROSION AMOUNT.—The term (B) NO ASSERTION OF CLAIM.—No insurer or remaining limits in such policies shall not be ‘‘deemed erosion amount’’ means the amount reinsurer may assert any claim against a de- considered to be remaining aggregate prod- of erosion deemed to occur at enactment fendant participant or captive insurer for in- ucts limits under subsection (a)(1)(A). under paragraph (2). surance, reinsurance, payment of a deduct- (5) PAYMENTS BY DEFENDANT PARTICIPANT.— (C) EARNED EROSION AMOUNT.—The term ible, or retrospective premium adjustment Payments made by a defendant participant ‘‘earned erosion amount’’ means the percent- arising out of that insurer’s or reinsurer’s shall be deemed to erode, exhaust, or other- age, as set forth in the following schedule, payments to the Fund or the erosion deemed wise satisfy applicable self-insured reten- depending on the year in which the defend- to occur under this section. tions, deductibles, retrospectively rated pre- ant participants’ funding obligations end, of (C) POLICIES WITHOUT CERTAIN LIMITS OR miums, and limits issued by nonpartici- those amounts which, at the time of the WITH EXCLUSION.—Except as provided under pating insolvent or captive insurance compa- early sunset, a defendant participant has subparagraph (E), nothing in this section nies. Reduction of remaining aggregate lim- paid to the fund and remains obligated to shall require or permit the erosion of any in- its under this subsection shall not limit the pay into the fund. surance policy or limit that does not contain right of a defendant participant to collect Year After Enactment Applicable an aggregate products limit, or that contains from any insurer not a participant. In Which Defendant Percentage: an asbestos exclusion. (6) EFFECT ON OTHER INSURANCE CLAIMS.— Participant’s Fund- (D) TREATMENT OF CONSOLIDATION ELEC- Other than as specified in this subsection, ing Obligation TION.—If an affiliated group elects consolida- this Act does not alter, change, modify, or Ends: tion as provided in section 204(g), the total affect insurance for claims other than asbes- 2 ...... 67.06 erosion of limits for the affiliated group 3 ...... 86.72 tos claims. 4 ...... 96.55 under paragraph (2)(A) shall not exceed 38.1 (b) DISPUTE RESOLUTION PROCEDURE.— 5 ...... 102.45 percent of the scheduled payment amount of (1) ARBITRATION.—The parties to a dispute 6 ...... 90.12 the single payment obligation for the entire regarding the erosion of insurance coverage 7 ...... 81.32 affiliated group. The total erosion of limits limits under this section may agree in writ- 8 ...... 74.71 for any individual defendant participant in ing to settle such dispute by arbitration. 9 ...... 69.58 the affiliated group shall not exceed its indi- Any such provision or agreement shall be 10 ...... 65.47 vidual share of 38.1 percent of the affiliated valid, irrevocable, and enforceable, except

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00127 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1262 CONGRESSIONAL RECORD — SENATE February 14, 2006 for any grounds that exist at law or in equity son who has asserted an asbestos claim be- (A) statements of the Fund’s revenues, ex- for revocation of a contract. fore the date of enactment of this Act, or to penses, assets, and liabilities; (2) TITLE 9, UNITED STATES CODE.—Arbitra- any trust, person, or other entity not part of (B) the identity of all participants, the tion of such disputes, awards by arbitrators, an affiliated group as defined in section funding allocations of each participant, and and confirmation of awards shall be governed 201(1) of this Act established or appointed for the total amounts of all payments to the by title 9, United States Code, to the extent the purpose of paying asbestos claims which Fund; such title is not inconsistent with this sec- were asserted before such date of enactment, (C) a list of all financial hardship or in- tion. In any such arbitration proceeding, the or by any Tier I defendant participant shall equity adjustments applied for during the erosion principles provided for under this be null and void. This subsection shall not fiscal year, and the adjustments that were section shall be binding on the arbitrator, void or affect in any way any assignments of made during the fiscal year; unless the parties agree to the contrary. rights to insurance coverage other than to (D) a statement of the investments of the (3) FINAL AND BINDING AWARD.—An award asbestos claimants or to trusts, persons, or Fund; and by an arbitrator shall be final and binding other entities not part of an affiliated group (E) a statement of the borrowings of the between the parties to the arbitration, but as defined in section 201(1) of this Act estab- Fund; shall have no force or effect on any other lished or appointed for the purpose of paying (4) the financial prospects of the Fund, in- person. The parties to an arbitration may asbestos claims, or by Tier I defendant par- cluding— agree that in the event a policy which is the ticipants. (A) an estimate of the number and types of subject matter of an award is subsequently (3) INSURANCE CLAIMS PRESERVED.—Not- claims, the amount of awards, and the par- determined to be eroded in a manner dif- withstanding any other provision of this Act, ticipant payment obligations for the next ferent from the manner determined by the this Act shall not alter, affect, or impair any fiscal year; arbitration in a judgment rendered by a rights or obligations of any person with re- (B) an analysis of the financial condition of court of competent jurisdiction from which spect to any insurance or reinsurance for the Fund, including an estimation of the no appeal can or has been taken, such arbi- amounts that any person pays, has paid, or Fund’s ability to pay claims for the subse- tration award may be modified by any court becomes legally obligated to pay in respect quent 5 years in full and over the predicted of competent jurisdiction upon application of asbestos or other claims except to the ex- lifetime of the program as and when re- by any party to the arbitration. Any such tent that— quired, an evaluation of the Fund’s ability to modification shall govern the rights and ob- (A) such claims are preempted, barred, or retire its existing debt and assume addi- ligations between such parties after the date superseded by section 403; tional debt, and an evaluation of the Fund’s of such modification. (B) any such rights or obligations of such ability to satisfy other obligations under the (c) EFFECT ON NONPARTICIPANTS.— person with respect to insurance or reinsur- program; and (1) IN GENERAL.—No insurance company or ance are prohibited by paragraph (1) or (2) of (C) a report on any changes in projections reinsurance company that is not a partici- subsection (e); or made in earlier annual reports or sunset pant, other than a captive insurer, shall be (C) the limits of insurance otherwise avail- analyses regarding the Fund’s ability to entitled to claim that payments to the Fund able to such participant in respect of asbes- meet its financial obligations; erode, exhaust, or otherwise limit the non- tos claims are deemed to be eroded under (5) a summary of any legal actions brought participant’s insurance or reinsurance obli- subsection (a). or penalties imposed under section 223, any gations. SEC. 405. ANNUAL REPORT OF THE ADMINIS- referrals made to law enforcement authori- (2) OTHER CLAIMS.—Nothing in this Act TRATOR. ties under section 408 (a) and (b), and any shall preclude a participant from pursuing (a) IN GENERAL.—The Administrator shall contributions to the Fund collected under any claim for insurance or reinsurance from submit an annual report to the Committee section 408(e); any person that is not a participant other on the Judiciary of the Senate and the Com- (6) any recommendations from the Advi- than a captive insurer. mittee on the Judiciary of the House of Rep- sory Committee on Asbestos Disease Com- (d) FINITE RISK POLICIES NOT AFFECTED.— resentatives on the operation of the Asbestos pensation and the Medical Advisory Com- (1) IN GENERAL.—Notwithstanding any Injury Claims Resolution Fund within 6 mittee of the Fund to improve the diag- other provision of this Act, except subject to months after the close of each fiscal year. nostic, exposure, and medical criteria so as section 212(a)(1)(D), this Act shall not alter, (b) CONTENTS OF REPORT.—The annual re- to pay those claimants who suffer from dis- affect or impair any rights or obligations port submitted under this subsection shall eases or conditions for which exposure to as- of— include an analysis of— bestos was a substantial contributing factor; (A) any party to an insurance contract (1) the claims experience of the program (7) a summary of the results of audits con- that expressly provides coverage for govern- during the most recent fiscal year, includ- ducted under section 115; and mental charges or assessments imposed to ing— (8) a summary of prosecutions under sec- replace insurance or reinsurance liabilities (A) the number of claims made to the Of- tion 1348 of title 18, United States Code (as in effect on the date of enactment of this fice and a description of the types of medical added by this Act). Act; or diagnoses and asbestos exposures underlying (c) CERTIFICATION.—The Administrator (B) subject to paragraph (2), any person those claims; shall certify in the annual report required with respect to any insurance purchased by a (B) the number of claims denied by the Of- under subsection (a) whether, in the best participant after December 31, 1990, that ex- fice and a description of the types of medical judgment of the Administrator, the Fund pressly (but not necessarily exclusively) pro- diagnoses and asbestos exposures underlying will have sufficient resources for the fiscal vides coverage for asbestos liabilities, in- those claims, and a general description of year in which the report is issued to make cluding those policies commonly referred to the reasons for their denial; all required payments— as ‘‘finite risk’’ policies. (C) a summary of the eligibility determina- (1) with respect to all claims determined (2) LIMITATION.—No person may assert that tions made by the Office under section 114; eligible for compensation that have been any amounts paid to the Fund in accordance (D) a summary of the awards made from filed and that the Administrator projects with this Act are covered by any policy de- the Fund, including the amount of the will be filed with the Office for the fiscal scribed under paragraph (1)(B) purchased by awards; and year; and a defendant participant, unless such policy (E) for each disease level, a statement of (2) to satisfy the Fund’s debt repayment specifically provides coverage for required the percentage of asbestos claimants who obligation, administrative costs, and other payments to a Federal trust fund established filed claims during the prior calendar year financial obligations. by a Federal statute to resolve asbestos in- and were determined to be eligible to receive (d) CLAIMS ANALYSIS AND VERIFICATION OF jury claims. compensation under this Act, who have re- UNANTICIPATED CLAIMS.— (e) EFFECT ON CERTAIN INSURANCE AND RE- ceived the compensation to which such (1) IN GENERAL.—If the Administrator con- INSURANCE CLAIMS.— claimants are entitled according to section cludes, on the basis of the annual report sub- (1) NO COVERAGE FOR FUND ASSESSMENTS.— 131; mitted under this section, that— Subject to section 212(a)(1)(D), no partici- (2) the administrative performance of the (A) the average number of claims that pant or captive insurer may pursue an insur- program, including— qualify for compensation under a claim level ance or reinsurance claim against another (A) the performance of the program in or designation exceeds 125 percent of the participant or captive insurer for payments meeting the time limits prescribed by law number of claims expected to qualify for to the Fund required under this Act, except and an analysis of the reasons for any sys- compensation under that claim level or des- under a written agreement specifically pro- temic delays; ignation in the most recent Congressional viding insurance, reinsurance, or other reim- (B) any backlogs of claims that may exist Budget Office estimate of asbestos-injury bursement for required payments to a Fed- and an explanation of the reasons for such claims for any 3-year period, the Adminis- eral trust fund established by a Federal stat- backlogs; trator shall conduct a review of a statis- ute to resolve asbestos injury claims or, (C) the costs to the Fund of administering tically significant sample of claims quali- where applicable, under finite risk policies the program; and fying for compensation under the appro- under subsection (d). (D) any other significant factors bearing priate claim level or designation; or (2) CERTAIN INSURANCE ASSIGNMENTS VOID- on the efficiency of the program; (B) the average number of claims that ED.—Any assignment of any rights to insur- (3) the financial condition of the Fund, in- qualify for compensation under a claim level ance coverage for asbestos claims to any per- cluding— or designation is less than 75 percent of the

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00128 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1263 number of claims expected to qualify for due at any time within the next 5 years and any borrowing authorized under section compensation under that claim level or des- to satisfy its other obligations, the Adminis- 221(b)(2); or ignation in the most recent Congressional trator shall prepare an analysis of the rea- (2) obligate the United States Government Budget Office estimate of asbestos-injury sons for the situation, an estimation of when to pay any award or part of an award, if claims for any 3-year period, the Adminis- the Fund will no longer be able to pay claims amounts in the Fund are inadequate. trator shall conduct a review of a statis- as such claims become due, a description of SEC. 407. RULES OF CONSTRUCTION. tically significant sample of claims deemed the range of reasonable alternatives for re- (a) LIBBY, MONTANA CLAIMANTS.—Nothing ineligible for compensation under the appro- sponding to the situation, and a rec- in this Act shall preclude the formation of a priate claim level or designation. ommendation as to which alternative best fund for the payment of eligible medical ex- (2) DETERMINATIONS.—The Administrator serves the interest of claimants and the pub- penses related to treating asbestos-related shall examine the best available medical evi- lic. The report may include a description of disease for current and former residents of dence and any recommendation made under changes in the diagnostic, exposure, or med- Libby, Montana. The payment of any such subsection (b)(5) in order to determine which ical criteria of section 121 that the Adminis- medical expenses shall not be collateral 1 or more of the following is true: trator believes may be necessary to protect source compensation as defined under sec- (A) Without a significant number of excep- the Fund. The Administrator shall submit tion 134(a). tions, all of the claimants who qualified for such analysis to the Committee on the Judi- (b) HEALTHCARE FROM PROVIDER OF compensation under the claim level or des- ciary of the Senate and the Committee on CHOICE.—Nothing in this Act shall be con- ignation suffer from an injury or disease for the Judiciary of the House of Representa- strued to preclude any eligible claimant which exposure to asbestos was a substantial tives. Any recommendations made by the from receiving healthcare from the provider contributing factor. Administrator for changes to the program of their choice. (B) A significant number of claimants who shall, in addition, be referred to the Advisory SEC. 408. VIOLATIONS OF ENVIRONMENTAL qualified for compensation under the claim Committee on Asbestos Disease Compensa- HEALTH AND SAFETY REQUIRE- level or designation do not suffer from an in- tion established under section 102 for review. MENTS. (a) ASBESTOS IN COMMERCE.—If the Admin- jury or disease for which exposure to asbes- (B) RANGE OF ALTERNATIVES.—The range of tos was a substantial contributing factor. alternatives under subparagraph (A) may in- istrator receives information concerning (C) A significant number of claimants who clude— conduct occurring after the date of enact- were denied compensation under the claim (ii) reform of the program set forth in ti- ment of this Act that may have been a viola- tion of standards issued by the Environ- level of designation did suffer from an injury tles I and II of this Act (including changes in mental Protection Agency under the Toxic or disease for which exposure to asbestos was the diagnostic, exposure, or medical criteria, Substances Control Act (15 U.S.C. 2601 et a substantial contributing factor. changes in the enforcement or application of seq.), relating to the manufacture, importa- (D) The Congressional Budget Office pro- those criteria, enhancement of enforcement tion, processing, disposal, and distribution in jections underestimated or overestimated authority, changes in the timing of pay- commerce of asbestos-containing products, the actual number of persons who suffer ments, changes in contributions by defend- the Administrator shall refer the matter in from an injury or disease for which exposure ant participants, insurer participants (or writing within 30 days after receiving that to asbestos was a substantial contributing both such participants), or changes in award information to the Administrator of the En- factor. values); or (3) RECOMMENDATIONS CONCERNING CLAIMS vironmental Protection Agency and the (iii) any measure that the Administrator CRITERIA.—If the Administrator determines United States attorney for possible civil or considers appropriate. that a significant number of the claimants criminal penalties, including those under (2) CONSIDERATIONS.—In formulating rec- who qualified for compensation under the section 17 of the Toxic Substances Control ommendations, the Administrator shall take claim level under review do not suffer from Act (15 U.S.C. 2616), and to the appropriate into account the reasons for any shortfall, an injury or disease for which exposure to as- State authority with jurisdiction to inves- actual or projected, which may include— bestos was a substantial contributing factor, tigate asbestos matters. (A) financial factors, including return on or that a significant number of the claim- (b) ASBESTOS AS AIR POLLUTANT.—If the investments, borrowing capacity, interest ants who were denied compensation under Administrator receives information con- rates, ability to collect contributions, and the claim level under review suffered from cerning conduct occurring after the date of other relevant factors; an injury or disease for which exposure to as- enactment of this Act that may have been a (B) the operation of the Fund generally, in- bestos was a substantial contributing factor, violation of standards issued by the Environ- cluding administration of the claims proc- the Administrator shall recommend to Con- mental Protection Agency under the Clean essing, the ability of the Administrator to gress, under subsection (f), changes to the Air Act (42 U.S.C. 7401 et seq.), relating to as- collect contributions from participants, po- compensation criteria in order to ensure bestos as a hazardous air pollutant, the Ad- tential problems of fraud, the adequacy of that the Fund provides compensation for in- ministrator shall refer the matter in writing the criteria to rule out idiopathic mesothe- jury or disease for which exposure to asbes- within 30 days after receiving that informa- lioma, and inadequate flexibility to extend tos was a substantial contributing factor, tion to the Administrator of the Environ- the timing of payments; but does not provide compensation to claim- mental Protection Agency and the United (C) the appropriateness of the diagnostic, ants who do not suffer from an injury or dis- States attorney for possible criminal and exposure, and medical criteria, including the ease for which asbestos exposure was a sub- civil penalties, including those under section adequacy of the criteria to rule out idio- stantial contributing factor. 113 of the Clean Air Act (42 U.S.C. 7413), and pathic mesothelioma; (e) RECOMMENDATIONS OF ADMINISTRATOR to the appropriate State authority with ju- (D) the actual incidence of asbestos-related AND ADVISORY COMMITTEE.— risdiction to investigate asbestos matters. (1) REFERRAL.—If the Administrator rec- diseases, including mesothelioma, based on (c) OCCUPATIONAL EXPOSURE.—If the Ad- ommends changes to this Act under sub- epidemiological studies and other relevant ministrator receives information concerning section (d), the recommendations and accom- data; conduct occurring after the date of enact- panying analysis shall be referred to the Ad- (E) compensation of diseases with alter- ment of this Act that may have been a viola- visory Committee on Asbestos Disease Com- native causes; and tion of standards issued by the Occupational pensation established under section 102 (in (F) other factors that the Administrator Safety and Health Administration under the this subsection referred to as the ‘‘Advisory considers relevant. Occupational Safety and Health Act of 1970 Committee’’). (4) RESOLVED CLAIMS.—For purposes of this (29 U.S.C. 651 et seq.), relating to occupa- (2) ADVISORY COMMITTEE RECOMMENDA- section, a claim shall be deemed resolved tional exposure to asbestos, the Adminis- TIONS.—The Advisory Committee shall hold when the Administrator has determined the trator shall refer the matter in writing with- expedited public hearings on the alternatives amount of the award due the claimant, and in 30 days after receiving that information and recommendations of the Administrator either the claimant has waived judicial re- and refer the matter to the Secretary of and make its own recommendations for re- view or the time for judicial review has ex- Labor or the appropriate State agency with form of the program under titles I and II. pired. authority to enforce occupational safety and (3) TRANSMITTAL TO CONGRESS.—Not later SEC. 406. RULES OF CONSTRUCTION RELATING health standards, for investigation for pos- than 90 days after receiving the rec- TO LIABILITY OF THE UNITED sible civil or criminal penalties under sec- ommendations of the Administrator, the Ad- STATES GOVERNMENT. tion 17 of the Occupational Safety and visory Committee shall transmit the rec- (a) CAUSES OF ACTIONS.—Except as other- Health Act of 1970 (29 U.S.C. 666). ommendations of the Administrator and the wise specifically provided in this Act, noth- SEC. 409. NONDISCRIMINATION OF HEALTH IN- recommendations of the Advisory Com- ing in this Act shall be construed as creating SURANCE. mittee to the Committee on the Judiciary of a cause of action against the United States (a) DENIAL, TERMINATION, OR ALTERATION the Senate and the Committee on the Judici- Government, any entity established under OF HEALTH COVERAGE.—No health insurer of- ary of the House of Representatives. this Act, or any officer or employee of the fering a health plan may deny or terminate (f) SHORTFALL ANALYSIS.— United States Government or such entity. coverage, or in any way alter the terms of (1) IN GENERAL.— (b) FUNDING LIABILITY.—Nothing in this coverage, of any claimant or the beneficiary (A) ANALYSIS.—If the Administrator con- Act shall be construed to— of a claimant, on account of the participa- cludes, at any time, that the Fund may not (1) create any obligation of funding from tion of the claimant or beneficiary in a med- be able to pay claims as such claims become the United States Government, including ical monitoring program under this Act, or

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Mr. REID submitted an (iii) contracted such asbestos-related dis- a result of such medical monitoring. amendment intended to be proposed to ease or condition during the claimant’s serv- (b) DEFINITIONS.—In this section: amendment SA 2746 proposed by Mr. ice— (1) HEALTH INSURER.—The term ‘‘health in- (I) in the Armed Forces of the United surer’’ means— FRIST (for Mr. SPECTER (for himself and States; (A) an insurance company, healthcare serv- Mr. LEAHY)) to the bill S. 852, to create (II) as an employee of the Department of ice contractor, fraternal benefit organiza- a fair and efficient system to resolve Defense; or tion, insurance agent, third-party adminis- claims of victims for bodily injury (III) as an employee performing official du- trator, insurance support organization, or caused by asbestos exposure, and for ties relating to national defense matters; other person subject to regulation under the other purposes; which was ordered to and laws related to health insurance of any lie on the table; as follows: (iv) has not received compensation from State; the Fund for the disease or condition for (B) a managed care organization; or On page 392, after line 5, insert the fol- which the claim was filed. lowing: (C) an employee welfare benefit plan regu- (B) DEFINITION.—In this paragraph, the lated under the Employee Retirement In- SEC. 503. EXPOSURE PRESUMPTIONS. term ‘‘employee’’ has the same meaning as come Security Act of 1974 (29 U.S.C. 1001 et Notwithstanding any other provision of in section 2105 of title 5, United States Code. seq.). this Act, any asbestos exposure that is a con- (3) ADDITIONAL HEALTH CLAIMS.—The Ad- (2) HEALTH PLAN.—The term ‘‘health plan’’ tributing factor in causing an asbestos-re- ministrator may, in final regulations pro- means— lated disease, condition, or illness shall meet mulgated under section 101(c), designate ad- (A) a group health plan (as such term is de- the exposure requirements for this Act. ditional categories of claims that qualify as fined in section 607 of the Employee Retire- veterans and defense employee health claims ment Income Security Act of 1974 (29 U.S.C. SA 2807. Mr. REID submitted an under this subsection. 1167)), and a multiple employer welfare ar- amendment intended to be proposed to (4) CLAIMS FACILITY.—To facilitate the rangement (as defined in section 3(4) of such amendment SA 2746 proposed by Mr. prompt payment of veterans and defense em- Act) that provides health insurance cov- FRIST (for Mr. SPECTER (for himself and ployee health claim, the Administrator shall erage; or Mr. LEAHY)) to the bill S. 852, to create contract with a claims facility, which apply- (B) any contractual arrangement for the ing the medical criteria of section 121, may a fair and efficient system to resolve enter into settlements with claimants. The provision of a payment for healthcare, in- claims of victims for bodily injury cluding any health insurance arrangement or processing and payment of any such claims any arrangement consisting of a hospital or caused by asbestos exposure, and for shall be subject to regulations promulgated medical expense incurred policy or certifi- other purposes; which was ordered to under this Act. cate, hospital or medical service plan con- lie on the table; as follows: (5) AUTHORIZATION FOR CONTRACTS WITH tract, or health maintenance organizing sub- On page 392, after line 5, insert the fol- CLAIMS FACILITIES.—The Administrator may scriber contract. lowing: enter into contracts with a claims facility for the processing of claims (except for ex- (c) CONFORMING AMENDMENTS.— SEC. 503. CONTINUANCE OF MESOTHELIOMA AND (1) ERISA.—Section 702(a)(1) of the Em- TERMINAL HEALTH CLAIMS. ceptional medical claims) in accordance with this title. ployee Retirement Income Security Act of (a) IN GENERAL.—Notwithstanding section ULES OF CONSTRUCTION.— 1974 (29 U.S.C. 1182(a)(1)), is amended by add- 106(f)(2) or any other provision of this Act, (6) R (A) NO RIGHT UNDER VETERANS’ BENEFIT ing at the end the following: each person who has filed a mesothelioma or PROGRAM.—Nothing in this subsection shall ‘‘(I) Participation in a medical monitoring terminal health claim before the date of en- be construed to provide any claimant with program under the Fairness in Asbestos In- actment of this Act may continue their any claim, right, or cause of action for bene- jury Resolution Act of 2006.’’. mesothelioma or terminal health claim in fits under a veterans’ benefit program. the court where the case was pending on the (B) COLLATERAL SOURCE COMPENSATION.—In SA 2804. Mr. REID submitted an date of enactment of this Act. For mesothe- no case shall amounts or benefits received by amendment intended to be proposed to lioma or terminal health claims filed after a claimant under this subsection be deemed amendment SA 2746 proposed by Mr. the date of enactment of this Act and before as collateral source compensation under this FRIST (for Mr. SPECTER (for himself and the Administrator certifies to Congress that Act. Mr. LEAHY)) to the bill S. 852, to create the Fund is operational and paying valid On page 41, line 8, strike ‘‘(e)’’ and insert a fair and efficient system to resolve claims at a reasonable rate, by claimants ‘‘(f)’’. claims of victims for bodily injury who do not elect to seek an offer of judgment On page 52, line 12, strike ‘‘(f)’’ and insert caused by asbestos exposure, and for under subparagraph (A), the pending claim is ‘‘(g)’’. other purposes; which was ordered to not stayed and such claimants may continue On page 318, line 5, strike ‘‘(f)’’ and insert their mesothelioma or terminal health ‘‘(g)’’. lie on the table; as follows: claims where the case is filed. On page 321, line 14, strike ‘‘(f)’’ and insert On page 132, between lines 7 and 8, insert ‘‘(g)’’. the following: SA 2808. Mr. SALAZAR submitted an On page 322, line 24, strike ‘‘(f)’’ and insert (c) REIMBURSEMENT FOR REASONABLE MED- amendment intended to be proposed to ‘‘(g)’’. ICAL EXPENSES.—In addition to the award amendment SA 2746 proposed by Mr. On page 325, line 18, strike ‘‘(f)’’ and insert under subsection (b), an asbestos claimant ‘‘(g)’’. with a claim for malignant Level IX shall re- FRIST (for Mr. SPECTER (for himself and ceive reimbursement for reasonable medical Mr. LEAHY)) to the bill S. 852, to create SA 2809. Mr. SALAZAR submitted an expenses recommended by a qualified physi- a fair and efficient system to resolve amendment intended to be proposed to cian. The Administrator shall promulgate claims of victims for bodily injury amendment SA 2746 proposed by Mr. regulations governing the reimbursement of caused by asbestos exposure, and for FRIST (for Mr. SPECTER (for himself and medical expenses under this subsection. other purposes; which was ordered to Mr. LEAHY)) to the bill S. 852, to create SA 2805. Mr. REID submitted an lie on the table; as follows: a fair and efficient system to resolve amendment intended to be proposed to On page 41, between lines 7 and 8, insert claims of victims for bodily injury amendment SA 2746 proposed by Mr. the following: caused by asbestos exposure, and for (e) VETERANS AND DEFENSE EMPLOYEE FRIST (for Mr. SPECTER (for himself and other purposes; which was ordered to HEALTH CLAIMS.— Mr. LEAHY)) to the bill S. 852, to create lie on the table; as follows: (1) IN GENERAL.—The Administrator shall On page 41, between lines 7 and 8, insert a fair and efficient system to resolve develop procedures to provide for an expe- claims of victims for bodily injury the following: dited process to categorize, evaluate, and (e) VETERANS AND DEFENSE EMPLOYEE caused by asbestos exposure, and for pay veterans and defense employee health HEALTH CLAIMS.— other purposes; which was ordered to claims. Such procedures shall include, pend- (1) IN GENERAL.—The Administrator shall lie on the table; as follows: ing promulgation of final regulations, adop- develop procedures to provide for an expe- On page 392, after line 5, insert the fol- tion of interim regulations as needed for dited process to categorize, evaluate, and lowing: processing of veterans and defense employee pay veterans and defense employee health SEC. 503. SUBSTANTIAL WEIGHTED EXPOSURE health claims. claims. Such procedures shall include, pend- FOR EXPOSURE OCCURRING AFTER (2) ELIGIBLE VETERANS HEALTH CLAIMS.— ing promulgation of final regulations, adop- 1975. (A) IN GENERAL.—A claim shall qualify for tion of interim regulations as needed for Notwithstanding section 121(a)(16)(E), for treatment as a veterans and defense em- processing of veterans and defense employee purposes of the calculations to be made ployee health claim if the claimant— health claims. under subparagraphs (B), (C), and (D) of para- (i) is living; (2) ELIGIBLE VETERANS HEALTH CLAIMS.— graph (16) of section 121, each year of asbes- (ii) provides a diagnosis of an asbestos-re- (A) IN GENERAL.—A claim shall qualify for tos exposure that occurred after 1975 shall be lated disease or condition meeting the re- treatment as a veterans and defense em- counted as 1⁄2 of its full value. quirements of section 121; ployee health claim if the claimant—

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Mr. LEAHY)) to the bill S. 852, to create On page 316, line 14, strike ‘‘initial plead- quirements of section 121; a fair and efficient system to resolve (iii) contracted such asbestos-related dis- ing’’ and insert ‘‘complaint’’. ease or condition during the claimant’s serv- On page 316, line 18, strike the comma and claims of victims for bodily injury ice— insert a parenthesis. caused by asbestos exposure, and for (I) in the Armed Forces of the United On page 316, line 8, strike ‘‘plead with’’ and other purposes; which was ordered to States; all that follows through ‘‘shall’’ on line 20. lie on the table; as follows: On page 316, line 20, strike ‘‘the informa- (II) as an employee of the Department of tion’’ and all that follows through the end of On page 52, line 15, insert ‘‘an exigent Defense; or page 317, line 2. health claim to which section 106(f)(2) ap- (III) as an employee performing official du- On page 317, line 4, strike ‘‘report,’’ and in- plies or’’ after ‘‘than’’. ties relating to national defense matters; sert ‘‘report, and’’. On page 52, line 16, insert ‘‘or an exigent and On page 317, line 5, strike ‘‘and such other health claim’’ after ‘‘applies’’. (iv) has not received compensation from evidence’’. On page 53, line 22, strike all through line the Fund for the disease or condition for On page 318, between lines 2 and 3, insert 25. which the claim was filed. the following: On page 60, lines 3 and 4, strike ‘‘before the (B) DEFINITION.—In this paragraph, the (4) DUAL INJURY.—If an exposed person has stay being lifted under subparagraph (B)’’. term ‘‘employee’’ has the same meaning as both a silica disease or conditions resulting On page 64, lines 8 through 10, strike ‘‘be- in section 2105 of title 5, United States Code. from exposure to silica and a disease or con- fore the stay being lifted under subparagraph (3) ADDITIONAL HEALTH CLAIMS.—The Ad- dition resulting from exposure to asbestos, (B)’’. ministrator may, in final regulations pro- any damages awarded for a claim that meets On page 64, line 16, beginning with ‘‘Fund’’ mulgated under section 101(c), designate ad- the requirements of paragraph (2)(A)— strike all through ‘‘the’’ on line 18, and in- ditional categories of claims that qualify as (A) shall be limited to damages attrib- sert ‘‘Fund. The’’. On page 64, line 24, strike all through page veterans and defense employee health claims utable to the exposed person’s exposure to 65, line 11, and insert the following: under this subsection. silica; and (B) CONTINUANCE OF CLAIMS.—Each person (4) CLAIMS FACILITY.—To facilitate the (B) shall not include damages attributable who has filed an exigent health claim before prompt payment of veterans and defense em- to the exposed person’s exposure to asbestos. ployee health claim, the Administrator shall the date of enactment of this Act may con- contract with a claims facility, which apply- SA 2811. Mr. KENNEDY submitted an tinue their exigent health claim in the court ing the medical criteria of section 121, may amendment intended to be proposed to where the case was pending on the date of enactment of this Act. For exigent health enter into settlements with claimants. The amendment SA 2746 proposed by Mr. processing and payment of any such claims claims filed after the date of enactment of FRIST (for Mr. SPECTER (for himself and shall be subject to regulations promulgated this Act and before the Administrator cer- under this Act. Mr. LEAHY)) to the bill S. 852, to create tifies to Congress that the Fund is oper- (5) AUTHORIZATION FOR CONTRACTS WITH a fair and efficient system to resolve ational and paying valid claims at a reason- CLAIMS FACILITIES.—The Administrator may claims of victims for bodily injury able rate, by claimants who do not elect to enter into contracts with a claims facility caused by asbestos exposure, and for seek an offer of judgment under subpara- for the processing of claims (except for ex- other purposes; which was ordered to graph (A), the pending claim is not stayed ceptional medical claims) in accordance with lie on the table; as follows: and such claimants may continue their exi- gent health claims where the case is filed. this title. On page 135, between lines 12 and 13, insert (6) RULES OF CONSTRUCTION.— the following: (A) NO RIGHT UNDER VETERANS’ BENEFIT SA 2814. Mr. KENNEDY submitted an (c) REIMBURSEMENT FOR REASONABLE MED- amendment intended to be proposed to PROGRAM.—Nothing in this subsection shall ICAL EXPENSES.—In addition to the award be construed to provide any claimant with under subsection (b), an asbestos claimant amendment SA 2746 proposed by Mr. any claim, right, or cause of action for bene- with a claim for malignant Level IX shall re- FRIST (for Mr. SPECTER (for himself and fits under a veterans’ benefit program. ceive reimbursement for reasonable medical Mr. LEAHY)) to the bill S. 852, to create (B) COLLATERAL SOURCE COMPENSATION.—In expenses recommended by a qualified physi- a fair and efficient system to resolve no case shall amounts or benefits received by cian. The Administrator shall promulgate claims of victims for bodily injury a claimant under this subsection be deemed regulations governing the reimbursement of caused by asbestos exposure, and for as collateral source compensation under this medical expenses under this subsection. Act. other purposes; which was ordered to On page 41, line 8, strike ‘‘(e)’’ and insert SA 2812. Mr. KENNEDY submitted an lie on the table; as follows: ‘‘(f)’’. amendment intended to be proposed to On page 73, line 7, strike ‘‘IX’’ and insert On page 52, line 12, strike ‘‘(f)’’ and insert amendment SA 2746 proposed by Mr. ‘‘X’’. ‘‘(g)’’. On page 78, line 23, strike ‘‘or’’. FRIST (for Mr. SPECTER (for himself and On page 318, line 5, strike ‘‘(f)’’ and insert On page 78, line 24, insert after the comma ‘‘(g)’’. Mr. LEAHY)) to the bill S. 852, to create ‘‘or Malignant Level IX’’. On page 321, line 14, strike ‘‘(f)’’ and insert a fair and efficient system to resolve On page 88, line 8, strike ‘‘or Malignant ‘‘(g)’’. claims of victims for bodily injury Level VIII’’ and insert ‘‘Malignant Level On page 322, line 24, strike ‘‘(f)’’ and insert caused by asbestos exposure, and for VIII, or Malignant Level IX’’. ‘‘(g)’’. other purposes; which was ordered to On page 89, line 18, strike ‘‘VII or VIII’’ and insert ‘‘Level VIII, or Level IX’’. On page 325, line 18, strike ‘‘(f)’’ and insert lie on the table; as follows: ‘‘(g)’’. On page 90, line 1, strike ‘‘VII or VIII’’ and On page 392, after line 5, insert the fol- insert ‘‘Level VIII, or Level IX’’ lowing: SA 2810. Mr. KENNEDY submitted an On page 98, line 17, strike ‘‘IX’’ and insert SEC. 503. CONTINUANCE OF TERMINAL HEALTH ‘‘X’’. amendment intended to be proposed to CLAIMS. On page 99, line 3, strike ‘‘IX’’ and insert amendment SA 2746 proposed by Mr. (a) IN GENERAL.—Nothwithstanding section ‘‘X’’. FRIST (for Mr. SPECTER (for himself and 106(f)(2) or any other provision of this Act, On page 102, line 2, strike ‘‘IX’’ and insert Mr. LEAHY)) to the bill S. 852, to create any individual who has filed a terminal ‘‘X’’. a fair and efficient system to resolve health claim before the date of enactment of On page 111, between lines 2 and 3, insert claims of victims for bodily injury this Act may continue that terminal health the following: (7) MALIGNANT LEVEL VII.— caused by asbestos exposure, and for claim in the court where the case was pend- ing on the date of enactment of this Act. For (A) IN GENERAL.—To receive Level VII com- other purposes; which was ordered to terminal health claims filed after the date of pensation a claimant shall provide— lie on the table; as follows: enactment of this Act and before the Admin- (i) a diagnosis of a primary lung cancer dis- On page 315, line 10, strike ‘‘personal injury istrator certifies to Congress that the Fund ease on the basis of findings by a board cer- claim’’ and insert ‘‘civil action in Federal or is operational and paying valid claims at a tified pathologist; State court seeking damages for personal in- reasonable rate, by claimants who do not (ii) evidence of 15 or more weighted years jury’’. elect to seek an offer of judgment under sub- of substantial occupational exposure to as- On page 315, line 25 and page 316, line 1, paragraph (A), the pending claim is not bestos; and strike ‘‘a functional impairment’’ and insert stayed and such claimants may continue the (iii) supporting medical documentation es- ‘‘from a disease or condition’’. terminal health claims where the case is tablishing asbestos exposure as a contrib- On page 316, line 5, strike ‘‘functional im- filed. uting factor in causing the lung cancer in pairment’’ and insert ‘‘disease or condition’’. question. On page 316, line 7, strike ‘‘(2) .’’ and insert SA 2813. Mr. KENNEDY submitted an (B) PHYSICIANS PANEL.—All claims filed re- ‘‘(2).’’. amendment intended to be proposed to lating to Level VII under this paragraph

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shall be referred to a Physicians Panel for a (3) ASBESTOS CLAIMS BY CERTAIN LUNG CAN- (1) IN GENERAL.—Except as provided under determination on the amount of award. In CER VICTIMS.—This Act shall not apply to paragraphs (2) and (3) and section 106(f) of making its determination under this sub- any asbestos claim brought by a person with this Act and section 524(j)(3) of title 11, paragraph, the Physicians Panel shall con- lung cancer who had substantial exposure to United States Code, as amended by this Act, sider the intensity and duration of exposure, asbestos but is not eligible for compensation the remedies provided under this Act shall be smoking history, and the quality of evidence from the Fund. Notwithstanding any other the exclusive remedy for any asbestos claim, relating to exposure and smoking. Claimants provision of this Act, a civil action for such including any claim described in subsection shall bear the burden of producing meaning- asbestos claims may be pursued in Federal or (e)(2), under any Federal or State law. ful and credible evidence of their smoking State court alleging that asbestos exposure (2) CIVIL ACTIONS AT TRIAL.— history as part of their claim submission. was a cause of the lung cancer. (A) IN GENERAL.—This Act shall not apply On page 111, strike lines 3 and 4, and insert to any asbestos claim that— the following: SA 2816. Mr. KENNEDY submitted an (i) is a civil action filed in a Federal or (8) MALIGNANT LEVEL VIII.— amendment intended to be proposed to State court (not including a filing in a bank- (A) IN GENERAL.—To receive Level VIII amendment SA 2746 proposed by Mr. ruptcy court); On page 112, line 2, strike ‘‘Level VII’’ and FRIST (for Mr. SPECTER (for himself and (ii) is not part of a consolidation of actions insert ‘‘Level VIII’’. or a class action; and On page 112, strike lines 15 and 16, and in- Mr. LEAHY)) to the bill S. 852, to create a fair and efficient system to resolve (iii) on the date of enactment of this Act— sert the following: (I) in the case of a civil action which in- (9) MALIGNANT LEVEL IX.— claims of victims for bodily injury cludes a jury trial, is before the jury after its (A) IN GENERAL.—To receive Level IX caused by asbestos exposure, and for impaneling and commencement of presen- On page 114, line 13, strike ‘‘Level VIII’’ other purposes; which was ordered to tation of evidence, but before its delibera- and insert ‘‘Level IX’’. lie on the table; as follows: tions; On page 115, strike lines 1 and 2, and insert (II) in the case of a civil action which in- the following: On page 41, line 21, strike ‘‘substantial’’. On page 72, line 22, strike ‘‘substantial’’. cludes a trial in which a judge is the trier of (10) MALIGNANT LEVEL X.—To receive Level On page 105, line 23, strike ‘‘substantial’’. fact, is at the presentation of evidence at X compensation, a claimant shall provide— On page 107, line 2, strike ‘‘substantial’’. trial; or On page 126, beginning with the matter fol- On page 108, line 2, strike ‘‘substantial’’. (III) with respect to which a verdict, final lowing line 20, strike all through the matter On page 109, line 9, strike ‘‘substantial’’. order, or final judgment has been entered by on page 127 before line 1 and insert the fol- On page 110, line 6, strike ‘‘substantial’’. a trial court. lowing: On page 110, lines 12 and 13, strike ‘‘sub- (B) NONAPPLICABILITY.—This Act shall not Scheduled Condition Scheduled Value stantial’’. apply to a civil action described under sub- Level or Disease. On page 111, line 23, strike ‘‘substantial’’. I Asbestosis/Pleural Medical Monitoring paragraph (A) throughout the final disposi- On page 114, line 8, strike ‘‘substantial’’. tion of the action. Disease A. On page 116, line 15, strike ‘‘substantial’’. (3) ASBESTOS CLAIMS BY CERTAIN LUNG CAN- II Mixed Disease With $32,000 On page 116, line 18, strike ‘‘substantial’’. Impairment. CER VICTIMS.— On page 123, lines 6 and 7, strike ‘‘substan- III Asbestosis/Pleural $100,000 (A) IN GENERAL.—This Act shall not apply Disease B. tial’’. On page 316, line 4, strike ‘‘substantial’’. to any asbestos claim brought by a person IV Severe Asbestosis.... $400,000 with lung cancer who had substantial expo- V Disabling Asbestosis $850,000 On page 347, line 3, strike ‘‘substantial’’. VI Other Cancer...... $200,000 On page 349, line 12, strike ‘‘substantial’’. sure to asbestos but is not eligible for com- VII Lung Cancer One ..... individual evalua- On page 349, lines 17 and 18, strike ‘‘sub- pensation from the Fund. Notwithstanding tion; stantial’’. any other provision of this Act, a civil action smokers, $75,000; On page 349, lines 22 and 23, strike ‘‘sub- for such asbestos claims may be pursued in ex-smokers, $200,000; stantial’’. Federal or State court alleging that asbestos non-smokers, $625,000 On page 350, lines 2 and 3, strike ‘‘substan- exposure was a cause of the lung cancer. Lung Cancer With smokers, $300,000; (B) RELATION TO STAYS.—Notwithstanding VIII Pleural Disease. ex-smokers, $725,000; tial’’. non-smokers, $800,000 On page 350, line 9, strike ‘‘substantial’’. any other provision of this Act, section IX Lung Cancer With smokers, $600,000; On page 350, line 13, strike ‘‘substantial’’. 106(f)(1) shall not apply to a claim described Asbestosis. ex-smokers, $975,000; On page 350, line 18, strike ‘‘substantial’’. in subparagraph (A). non-smokers, On page 350, line 21, strike ‘‘substantial’’. $1,100,000 X Mesothelioma ...... $1,100,000 SA 2817. Mr. KENNEDY submitted an SA 2819. Mr. KENNEDY submitted an On page 127, line 13, strike ‘‘IX’’ and insert amendment intended to be proposed to amendment intended to be proposed to ‘‘X’’. amendment SA 2746 proposed by Mr. amendment SA 2746 proposed by Mr. On page 127, line 18, strike ‘‘IX’’ and insert FRIST (for Mr. SPECTER (for himself and FRIST (for Mr. SPECTER (for himself and ‘‘X’’. Mr. LEAHY)) to the bill S. 852, to create Mr. LEAHY)) to the bill S. 852, to create On page 128, line 1, strike ‘‘IX’’ and insert a fair and efficient system to resolve ‘‘X’’. a fair and efficient system to resolve On page 128, line 3, strike ‘‘IX’’ and insert claims of victims for bodily injury claims of victims for bodily injury ‘‘X’’. caused by asbestos exposure, and for caused by asbestos exposure, and for On page 141, line 26, strike ‘‘IX’’ and insert other purposes; which was ordered to other purposes; which was ordered to ‘‘X’’. lie on the table; as follows: lie on the table; as follows: On page 250, line 10, strike ‘‘IX’’ and insert On page 132, between lines 7 and 8, insert ‘‘X’’. the following: On page 315, strike line 1 and all that fol- On page 250, line 14, strike ‘‘VIII’’ and in- (c) REIMBURSEMENT FOR REASONABLE MED- lows through page 318, line 2, and insert the sert ‘‘IX’’. ICAL EXPENSES.—In addition to the award following: On page 361, line 24, strike ‘‘VIII’’ and in- under subsection (b), an asbestos claimant sert ‘‘IX’’. SEC. 403. EFFECT ON OTHER LAWS AND EXISTING with a claim for malignant Level IX shall re- CLAIMS. SA 2815. Mr. KENNEDY submitted an ceive reimbursement for reasonable medical expenses recommended by a qualified physi- (a) EFFECT ON FEDERAL AND STATE LAW.— amendment intended to be proposed to cian. The Administrator shall promulgate The provisions of this Act shall supersede amendment SA 2746 proposed by Mr. regulations governing the reimbursement of any Federal or State law insofar as such law FRIST (for Mr. SPECTER (for himself and medical expenses under this subsection. may relate to any asbestos claim, including Mr. LEAHY)) to the bill S. 852, to create any claim described under subsection (e)(2). a fair and efficient system to resolve SA 2818. Mr. KENNEDY submitted an (b) EFFECT ON SILICA CLAIMS.— claims of victims for bodily injury amendment intended to be proposed to (1) IN GENERAL.— caused by asbestos exposure, and for amendment SA 2746 proposed by Mr. (A) RULE OF CONSTRUCTION.—Nothing in other purposes; which was ordered to FRIST (for Mr. SPECTER (for himself and this Act shall be construed to preempt, bar, lie on the table; as follows: Mr. LEAHY)) to the bill S. 852, to create or otherwise preclude any civil action in Federal or State court seeking damages for On page 52, line 16, insert ‘‘or (3)’’ after a fair and efficient system to resolve personal injury attributable to exposure to ‘‘section 403(d)(2)’’. claims of victims for bodily injury silica as to which the plaintiff— On page 321, line 14, strike ‘‘paragraph (2),’’ caused by asbestos exposure, and for (i) pleads with particularity and estab- and insert ‘‘paragraphs (2) and (3),’’. other purposes; which was ordered to lishes by a preponderance of evidence either On page 322, between lines 14 and 15, insert lie on the table; as follows: the following: that— On page 321, strike line 6 and all that fol- (I) no claim has been asserted or filed by or lows through page 322, line 13, and insert the with respect to the exposed person in any following: forum for any asbestos-related condition and

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00132 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1267 the exposed person (or another claiming on (D) copies of all medical and laboratory re- reference to Level VII, VIII, or IX in this Act behalf of or through the exposed person) is ports pertaining to the exposed person that (other than this subtitle) shall be deemed a not eligible for any monetary award under refer to asbestos or asbestos exposure. reference to Level VIII, IX, or X, respec- this Act; or (3) STATUTE OF LIMITATIONS.—In general, tively, as provided under this subtitle. (II)(aa) the exposed person suffers or has the statute of limitations for a silica claim suffered from a disease or condition that was shall be governed by applicable State law, (b) MALIGNANT LEVEL VII.— caused by exposure to silica; and except that in any case under this sub- (1) IN GENERAL.—Notwithstanding any (bb) asbestos exposure was not a substan- section, the statute of limitations shall only other provision of this Act, to receive Level tial contributing factor to such disease or start to run when the plaintiff becomes im- VII compensation a claimant shall provide— condition; and paired. (A) a diagnosis of a primary lung cancer (ii) satisfies the requirements of paragraph (4) DUAL INJURY.—If an exposed person has disease on the basis of findings by a board (2). both a silica disease or conditions resulting certified pathologist; from exposure to silica and a disease or con- (B) PREEMPTION.—Civil actions seeking (B) evidence of 15 or more weighted years dition resulting from exposure to asbestos, damages for personal injury attributable to of substantial occupational exposure to as- any damages awarded for a claim that meets exposure to silica that fail to meet the re- bestos; and the requirements of paragraph (2)— quirements of subparagraph (A) shall be pre- (C) supporting medical documentation es- (A) shall be limited to damages attrib- empted by this Act. tablishing asbestos exposure as a contrib- utable to the exposed person’s exposure to (2) REQUIRED EVIDENCE.—In any claim to uting factor in causing the lung cancer in silica; and which paragraph (1) applies, the complaint (B) shall not include damages attributable question. (or, for claims pending on the date of enact- to the exposed person’s exposure to asbestos. (2) PHYSICIANS PANEL.—Notwithstanding ment of this Act, an amended pleading to be any other provision of this Act, all claims filed within 60 days after such date, but not SA 2820. Mr. KENNEDY submitted an filed relating to Level VII under this para- later than 60 days before trial) shall be ac- amendment intended to be proposed to graph shall be referred to a Physicians Panel companied by— amendment SA 2746 proposed by Mr. for a determination on the amount of award. (A) admissible evidence, including at a In making its determination under this sub- FRIST (for Mr. SPECTER (for himself and minimum, a B-reader’s report, and the un- paragraph, the Physicians Panel shall con- Mr. LEAHY)) to the bill S. 852, to create derlying x-ray film showing that the claim sider the intensity and duration of exposure, may be maintained and is not preempted a fair and efficient system to resolve smoking history, and the quality of evidence under paragraph (1); claims of victims for bodily injury relating to exposure and smoking. Claimants (B) notice of any previous lawsuit or claim caused by asbestos exposure, and for shall bear the burden of producing meaning- for benefits in which the exposed person, or other purposes; which was ordered to ful and credible evidence of their smoking another claiming on behalf of or through the lie on the table; as follows: history as part of their claim submission. injured person, asserted an injury or dis- On page 130, add after line 21 the following: ability based wholly or in part on exposure (c) AWARDS.—Notwithstanding section 131 to asbestos; Subtitle E—Controlling Level and Awards of this Act (or any other provision of this (C) if known by the plaintiff after reason- Provisions Act) the benefits table under subsection able inquiry by the plaintiff or his represent- SEC. 141. LEVEL AND AWARDS PROVISIONS. (b)(1) of that section shall be administered as ative, the history of the exposed person’s ex- (a) REFERENCES TO LEVELS.—Notwith- follows: posure, if any, to asbestos; and standing any other provision of this Act, any

Level Scheduled condition or disease Scheduled value

I Asbestosis/Pleural Disease A Medical Monitoring II Mixed Disease With Impairment $32,000 III Asbestosis/Pleural Disease B $100,000 IV Severe Asbestosis $400,000 V Disabling Asbestosis $850,000 VI Other Cancer $200,000 VII Lung Cancer One individual evaluation; smokers, $75,000; ex- smokers, $200,000; non-smokers, $625,000 VIII Lung Cancer With Pleural Disease smokers, $300,000; ex-smokers, $725,000; non-smokers, $800,000 IX Lung Cancer With Asbestosis smokers, $600,000; ex-smokers, $975,000; non-smokers, $1,100,000 X Mesothelioma $1,100,000

SA 2821. Mr. KENNEDY submitted an who has filed a terminal health claim before FRIST (for Mr. SPECTER (for himself and amendment intended to be proposed to the date of enactment of this Act may con- Mr. LEAHY)) to the bill S. 852, to create amendment SA 2746 proposed by Mr. tinue that terminal health claim in the a fair and efficient system to resolve court where the case was pending on the date FRIST (for Mr. SPECTER (for himself and claims of victims for bodily injury of enactment of this Act. For terminal Mr. LEAHY)) to the bill S. 852, to create health claims filed after the date of enact- caused by asbestos exposure, and for a fair and efficient system to resolve ment of this Act and before the Adminis- other purposes; which was ordered to claims of victims for bodily injury trator certifies to Congress that the Fund is lie on the table; as follows: caused by asbestos exposure, and for operational and paying valid claims at a rea- On page 392, after line 5, insert the fol- other purposes; which was ordered to sonable rate, by claimants who do not elect lowing: lie on the table; as follows: to seek an offer of judgment under section 106(f)(2), the pending claim is not stayed and SEC. 503. EXPOSURE PRESUMPTIONS. On page 392, after line 5, insert the fol- such claimants may continue the terminal lowing: Notwithstanding any other provision of health claims where the case is filed. SEC. 503. CONTINUANCE OF TERMINAL HEALTH this Act, any asbestos exposure that is a con- CLAIMS. tributing factor in causing an asbestos-re- SA 2822. Mr. KENNEDY submitted an Nothwithstanding section 106(f)(2) or any lated disease, condition, or illness shall meet other provision of this Act, any individual amendment intended to be proposed to the exposure requirements for this Act. amendment SA 2746 proposed by Mr.

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Federal or State agency with authority to a fair and efficient system to resolve enforce laws regulating an activity relating claims of victims for bodily injury SA 2824. Mr. KOHL submitted an to such information. caused by asbestos exposure, and for amendment intended to be proposed to ‘‘(2) SCOPE OF CONFIDENTIALITY.—Any such other purposes; which was ordered to amendment SA 2746 proposed by Mr. information disclosed to a Federal or State lie on the table; as follows: FRIST (for Mr. SPECTER (for himself and agency shall be confidential to the extent provided by law. On page 98, strike lines 6 through 17, and Mr. LEAHY)) to the bill S. 852, to create a fair and efficient system to resolve ‘‘(c) SETTLEMENTS.— insert the following: ‘‘(1) IN GENERAL.—Except as provided in (4) WAIVER FOR WORKERS AND RESIDENTS OF claims of victims for bodily injury paragraph (2), a court shall not enforce any VERMICULITE MINING AND PROCESSING COMMU- caused by asbestos exposure, and for provision of a settlement agreement between NITIES.— other purposes; which was ordered to or among parties that prohibits 1 or more (A) IN GENERAL.—Because of the nature of lie on the table; as follows: parties from— asbestos exposure related to the vermiculite On page 392, after line 5, add the following: ‘‘(A) disclosing that a settlement was mining operations in Libby, Montana, and TITLE VI—PROTECTIVE ORDERS reached or the terms of such settlement, the vermiculite processing operations associ- other than the amount of money paid; or SEC. 601. SHORT TITLE. ated with such mining operations, the Ad- ‘‘(B) discussing a case, or evidence pro- This title may be cited as the ‘‘Sunshine in ministrator shall waive the exposure require- duced in the case, that involves matters re- Litigation Act of 2006’’. ments under this subtitle for individuals who lated to public health or safety. SEC. 602. RESTRICTIONS ON PROTECTIVE OR- worked— ‘‘(2) EXCEPTION.—Paragraph (1) shall not DERS AND SEALING OF CASES AND (i) at the vermiculite mining operations in apply if the court finds that the public inter- Libby, Montana, or lived or worked within a SETTLEMENTS. (a) IN GENERAL.—Chapter 111 of title 28, est in the disclosure of potential health or 20-mile radius of such mining operations, for safety hazards is outweighed by a specific at least 12 months before December 31, 2004; United States Code, is amended by adding at the end the following: and substantial interest in maintaining the and confidentiality of the information.’’. ‘‘§ 1660. Restrictions on protective orders and (ii) at sites processing vermiculite mined (b) TECHNICAL AND CONFORMING AMEND- sealing of cases and settlements from mining operations in Libby, Montana; MENT.—The table of sections for chapter 111 or ‘‘(a) ORDERS RESTRICTING DISCLOSURE OF of title 28, United States Code, is amended by (iii) or lived within a 20 mile radius of a INFORMATION.— adding after the item relating to section 1659 processing site described in clause (ii), for at ‘‘(1) IN GENERAL.—A court shall not enter the following: least 12 months before December 31, 2004. an order under rule 26(c) of the Federal Rules ‘‘1660. Restrictions on protective orders and (B) REQUIRED DOCUMENTATION.—Claimants of Civil Procedure restricting the disclosure sealing of cases and settle- under this paragraph shall provide such sup- of information obtained through discovery, ments.’’. an order approving a settlement agreement porting documentation as the Administrator SEC. 603. EFFECTIVE DATE. shall require. that would restrict the disclosure of such in- The amendments made by this title shall— On page 118, strike line 6 and all that fol- formation, or an order restricting access to (1) take effect 30 days after the date of en- lows through page 120, line 4, and insert the court records in a civil case unless the court actment of this Act; and following: finds— (2) apply only to orders entered in civil ac- (8) VERMICULITE MINING AND PROCESSING ‘‘(A) that such order would not restrict the tions or agreements entered into on or after CLAIMANTS.— disclosure of information which is relevant the date described in paragraph (1). (A) IN GENERAL.—A vermiculite mining and to the protection of public health or safety; processing claimant, as described under sub- or SA 2825. Mr. SALAZAR submitted an section (c)(4), may elect to have the claim- ‘‘(B) that— amendment intended to be proposed to ant’s claim designated as an exceptional ‘‘(i) the public interest in the disclosure of amendment SA 2746 proposed by Mr. medical claim and referred to a Physicians potential health or safety hazards is out- FRIST (for Mr. SPECTER (for himself and Panel for review. In reviewing the medical weighed by a specific and substantial inter- evidence submitted by such a claimant in est in maintaining the confidentiality of the Mr. LEAHY)) to the bill S. 852, to create support of that claim, the Physicians Panel information or records in question; and a fair and efficient system to resolve shall take into consideration the unique and ‘‘(ii) the requested protective order is no claims of victims for bodily injury serious nature of asbestos exposure in broader than necessary to protect the pri- caused by asbestos exposure, and for vermiculite mining and processing oper- vacy interest asserted. other purposes; which was ordered to ations, including the nature of the pleural ‘‘(2) PERIOD OF EFFECT.—No order entered lie on the table; as follows: disease related to asbestos exposure from under paragraph (1), other than an order ap- On page 392, after line 5, insert the fol- such sites. proving a settlement agreement, shall con- lowing: (B) CLAIMS.—For all claims for Levels II tinue in effect after the entry of final judg- SEC. 503. VETERANS AND DEFENSE EMPLOYEE through IV filed by vermiculite mining and ment, unless at the time of, or after, such HEALTH CLAIMS. processing claimants, as described under sub- entry the court finds that the requirements (a) IN GENERAL.—The Administrator shall section (c)(4), once the Administrator or the of paragraph (1) have been met. develop procedures to provide for an expe- Physicians Panel issues a certificate of med- ‘‘(3) BURDEN OF PROOF.—The party who is dited process to categorize, evaluate, and ical eligibility to such claimant, and not- the proponent for the entry of an order under pay veterans and defense employee health withstanding the disease category des- paragraph (1) shall have the burden of proof claims. Such procedures shall include, pend- ignated in the certificate or the eligible dis- in obtaining such an order. ing promulgation of final regulations, adop- ease or condition established in accordance ‘‘(4) NOT WAIVABLE.—This section shall tion of interim regulations as needed for with this section, or the value of the award apply if an order under paragraph (1) is re- processing of veterans and defense employee determined in accordance with section 114, quested— health claims. such claimant shall be entitled to an award ‘‘(A) by motion pursuant to rule 26(c) of (b) ELIGIBLE VETERANS HEALTH CLAIMS.— that is not less than that awarded to claim- the Federal Rules of Civil Procedure; or (1) IN GENERAL.—A claim shall qualify for ants who suffer from asbestosis, Level IV. ‘‘(B) by application pursuant to the stipu- treatment as a veterans and defense em- For all malignant claims filed by lation of the parties. ployee health claim if the claimant— vermiculite mining and processing claim- ‘‘(5) EFFECT ON DISCOVERY.— (A) is living; ants, such claimant shall be entitled to an ‘‘(A) IN GENERAL.—The provisions of this (B) provides a diagnosis of an asbestos-re- award that corresponds to the malignant dis- section shall not constitute grounds for the lated disease or condition meeting the re- ease category designated by the Adminis- withholding of information in discovery that quirements of section 121; trator or the Physicians Panel. is otherwise discoverable under rule 26 of the (C) contracted such asbestos-related dis- On page 366, strike lines 2 through 8, and Federal Rules of Civil Procedure. ease or condition during the claimant’s serv- insert the following: ‘‘(B) LIMIT ON REQUESTS.—No party shall ice— (a) VERMICULITE MINING AND PROCESSING request, as a condition for the production of (i) in the Armed Forces of the United CLAIMANTS.—Nothing in this Act shall pre- discovery, that another party stipulate to an States; clude the formation of a fund for the pay- order that would violate this section. (ii) as an employee of the Department of ment of eligible medical expenses related to ‘‘(b) DISCLOSURE TO GOVERNMENT AGEN- Defense; or treating asbestos-related disease for current CIES.— (iii) as an employee performing official du- and former residents of vermiculite mining ‘‘(1) IN GENERAL.—A court shall not ap- ties relating to national defense matters; and processing communities, as described prove or enforce any provision of an agree- and

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00134 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1269 (D) has not received compensation from a fair and efficient system to resolve essing operations of vermiculite ore, the Ad- the Fund for the disease or condition for claims of victims for bodily injury ministrator shall waive the exposure require- which the claim was filed. caused by asbestos exposure, and for ments under subtitle II for an individual who (2) DEFINITION.—In this paragraph, the other purposes; which was ordered to worked at a vermiculite processing site in term ‘‘employee’’ has the same meaning as the State of California, or lived or worked in section 2105 of title 5, United States Code. lie on the table; as follows: within a 20 mile radius of such processing (c) ADDITIONAL HEALTH CLAIMS.—The Ad- On page 85, after line 23, insert the fol- site, for at least 12 consecutive months be- ministrator may, in final regulations pro- lowing: fore December 31, 2005. Claimants under this mulgated under section 101(c), designate ad- SEC. 116. OPT OUT PROVISION FOR CLAIMANTS paragraph shall provide such supporting doc- ditional categories of claims that qualify as AGAINST NONPARTICIPANT ENTI- umentation, as the Administrator shall re- veterans and defense employee health claims TIES. quire. (a) DEFINITION.—In this section, the term under this subsection. (b) VERMICULITE PROCESSING SITES.—The ‘‘covered claimant ’’ means any person who— (d) CLAIMS FACILITY.—To facilitate the claims procedures described under section (1) may have contracted an asbestos-re- prompt payment of veterans and defense em- 121(g)(8) relating to Libby, Montana claim- lated disease or condition; and ployee health claim, the Administrator shall ants shall apply to any eligible claimant who (2) has filed, or is eligible to file, an asbes- contract with a claims facility, which apply- worked at a vermiculite processing site in tos claim under section 113 with the Fund; ing the medical criteria of section 121, may the State of California, or lived or worked and enter into settlements with claimants. The within a 20 mile radius of such processing (3) except for the provisions of this Act, processing and payment of any such claims site, as described under subsection (a), and could file a civil action on that asbestos shall be subject to regulations promulgated where such processing site has been identi- claim against any entity that is not a partic- under this Act. fied by a Federal or State agency as having ipant as defined under section 3. (e) AUTHORIZATION FOR CONTRACTS WITH received or processed vermiculite ore from (b) ELECTION.—Any covered claimant CLAIMS FACILITIES.—The Administrator may may— Libby, Montana. enter into contracts with a claims facility ERMICULITE PROCESSING SITE CLAIM- (1) file an election with the Adminstrator (c) V for the processing of claims (except for ex- ANTS.— to— ceptional medical claims) in accordance with (1) IN GENERAL.—Nothing is this Act shall (A) withdraw the claim with the Fund; or this title. preclude the formation of a future fund for (B) provide notice to pursue the claim in a (f) RULES OF CONSTRUCTION.— the payment of eligible medical expenses re- civil action instead of under title I; and (1) NO RIGHT UNDER VETERANS’ BENEFIT PRO- lated to treating asbestos-related disease for (2) file a civil action on that asbestos claim GRAM.—Nothing in this subsection shall be individuals who worked at a vermiculite in an appropriate Federal or State court. construed to provide any claimant with any processing site in the State of California, or claim, right, or cause of action for benefits SA 2829. Mrs. BOXER submitted an lived or worked within a 20 mile radius of under a veterans’ benefit program. amendment intended to be proposed to such processing site, as described under sub- (2) COLLATERAL SOURCE COMPENSATION.—In amendment SA 2746 proposed by Mr. section (a). no case shall amounts or benefits received by (2) COLLATERAL SOURCE COMPENSATION EX- a claimant under this subsection be deemed FRIST (for Mr. SPECTER (for himself and CEPTION.—The payment of any medical ex- as collateral source compensation under this Mr. LEAHY)) to the bill S. 852, to create pense under paragraph (1) shall not be collat- Act. a fair and efficient system to resolve eral source compensations as defined under claims of victims for bodily injury section 134(a). SA 2826. Mr. LEVIN submitted an caused by asbestos exposure, and for amendment intended to be proposed to other purposes; which was ordered to SA 2831. Mrs. BOXER submitted an amendment SA 2746 proposed by Mr. lie on the table; as follows: amendment intended to be proposed to FRIST (for Mr. SPECTER (for himself and On page 85, after line 23, insert the fol- amendment SA 2746 proposed by Mr. Mr. LEAHY)) to the bill S. 852, to create lowing: FRIST (for Mr. SPECTER (for himself and a fair and efficient system to resolve SEC. 116. OPT OUT PROVISION FOR NATURALLY Mr. LEAHY)) to the bill S. 852, to create claims of victims for bodily injury OCCURRING ASBESTOS CLAIMANTS. a fair and efficient system to resolve caused by asbestos exposure, and for (a) DEFINITION.—In this section, the term claims of victims for bodily injury other purposes; which was ordered to ‘‘naturally occurring asbestos claimant ’’ caused by asbestos exposure, and for lie on the table; as follows: means any person who— other purposes; which was ordered to (1) may have contracted an asbestos-re- On page 39, between lines 3 and 4, insert lated disease or condition caused by exposure lie on the table; as follows: the following: to naturally occurring asbestos; and On page 392, after line 5, insert the fol- (C) CLAIMS FROM FORMER CIVIL ACTIONS.— (2) has filed, or is eligible to file, an asbes- lowing: (i) IN GENERAL.—The Administrator may, tos claim under section 113 with the Fund; SEC. 503. WAIVER FOR WORKERS AND RESIDENTS in instances where the attorney or attorneys and OF VERMICULITE PROCESSING for the plaintiffs in a pending tort case have (3) except for the provisions of this Act, SITES AND COMMUNITIES. spent such a substantial amount of time and could file a civil action on that asbestos (a) IN GENERAL.—Because of the unique na- resources prior to April 19, 2005 that a 5% at- claim against any entity that is not a partic- ture of asbestos exposure related to the proc- torney fee limitation would be manifestly ipant as defined under section 3. essing operations of vermiculite ore, the Ad- unfair, increase the attorney limitation fee. (b) ELECTION.—Any naturally occurring as- ministrator shall waive the exposure require- bestos claimant may— ments under subtitle II for an individual who SA 2827. Mr. LEVIN submitted an (1) file an election with the Adminstrator worked at a site processing vermiculite amendment intended to be proposed to to— mined from mining operations in Libby, amendment SA 2746 proposed by Mr. (A) withdraw the claim with the Fund; or Montana, or lived or worked within a 20 mile FRIST (for Mr. SPECTER (for himself and (B) provide notice to pursue the claim in a radius of such processing site, for at least 12 Mr. LEAHY)) to the bill S. 852, to create civil action instead of under title I; and consecutive months before December 31, 2005. a fair and efficient system to resolve (2) file a civil action on that asbestos claim Claimants under this paragraph shall provide in an appropriate Federal or State court. such supporting documentation, as the Ad- claims of victims for bodily injury ministrator shall require. caused by asbestos exposure, and for SA 2830. Mrs. BOXER submitted an (b) VERMICULITE PROCESSING SITES.—The other purposes; which was ordered to amendment intended to be proposed to claims procedures described under section lie on the table; as follows: amendment SA 2746 proposed by Mr. 121(g)(8) relating to Libby, Montana claim- At the appropriate place, insert the fol- FRIST (for Mr. SPECTER (for himself and ants shall apply to any eligible claimant who worked at a site processing vermiculite lowing: Mr. LEAHY)) to the bill S. 852, to create mined from mining operations in Libby, If the consolidation of the existing asbestos a fair and efficient system to resolve Montana, or lived or worked within a 20 mile trust funds into this trust fund is ruled un- claims of victims for bodily injury radius of such processing site, as described constitutional by a final ruling of the U.S. caused by asbestos exposure, and for under subsection (a), and where such proc- Supreme Court, this bill shall be non-sever- other purposes; which was ordered to essing site has been identified by a Federal able, unless Congress acts within six months or State agency as having received or proc- to strike this provision. lie on the table; as follows: On page 392, after line 5, insert the fol- essed vermiculite ore from Libby, Montana. (c) VERMICULITE PROCESSING SITE CLAIM- SA 2828. Mrs. BOXER submitted an lowing: ANTS.— amendment intended to be proposed to SEC. 503. WAIVER FOR WORKERS AND RESIDENTS OF VERMICULITE PROCESSING (1) IN GENERAL.—Nothing is this Act shall amendment SA 2746 proposed by Mr. SITES AND COMMUNITIES. preclude the formation of a future fund for FRIST (for Mr. SPECTER (for himself and (a) IN GENERAL.—Because of the unique na- the payment of eligible medical expenses re- Mr. LEAHY)) to the bill S. 852, to create ture of asbestos exposure related to the proc- lated to treating asbestos-related disease for

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individuals who worked at a site processing small business concern, the court may con- (A) RULE OF CONSTRUCTION.—Nothing in vermiculite mined from mining operations in sider the fact that another asbestos claim this Act shall be construed to preempt, bar, Libby, Montana, or lived or worked within a against such small business concern was dis- or otherwise preclude any civil action in 20 mile radius of such processing site, as de- missed in determining whether such small Federal or State court seeking damages for scribed under subsection (a). business concern was not involved in a busi- personal injury attributable to exposure to (2) COLLATERAL SOURCE COMPENSATION EX- ness involving, and did not use contractors silica as to which the plaintiff— CEPTION.—The payment of any medical ex- performing duties involving the materials (i) pleads with particularity and estab- pense under paragraph (1) shall not be collat- described in subclause (I), (II), or (III) of lishes by a preponderance of evidence either eral source compensations as defined under clause (ii). that— section 134(a). (iv) EXCEPTIONS.—Clause (ii) and (iii) of (I) no claim has been asserted or filed by or this subparagraph shall not apply to— with respect to the exposed person in any SA 2832. Mrs. BOXER submitted an (I) a claim against an insurance company; forum for any asbestos-related condition and amendment intended to be proposed to or the exposed person (or another claiming on amendment SA 2746 proposed by Mr. (II) a claim against a small business con- behalf of or through the exposed person) is FRIST (for Mr. SPECTER (for himself and cern by a current or former employee of such not eligible for any monetary award under Mr. LEAHY)) to the bill S. 852, to create small business concern. this Act; or a fair and efficient system to resolve (v) PROCEDURES FOR SETTLEMENT OF TER- (II)(aa) the exposed person suffers or has MINAL HEALTH CLAIMS.—Notwithstanding any suffered from a disease or condition that was claims of victims for bodily injury other provision of this Act, the settlement caused by exposure to silica; and caused by asbestos exposure, and for requirements under section 106(f)(2) shall not (bb) asbestos exposure was not a substan- other purposes; which was ordered to apply to any terminal health claim, as pro- tial contributing factor to such disease or lie on the table; as follows: vided under section 106(c)(2), against a small condition; and On page 392, after line 5, insert the fol- business concern filed before, on, or after the (ii) satisfies the requirements of paragraph lowing: date of enactment of this Act seeking a judg- (2). SEC. 503. WAIVER FOR WORKERS AND RESIDENTS ment or order for monetary damages in any (B) PREEMPTION.—Civil actions seeking OF MINING AND MILLING OPER- Federal or State court. damages for personal injury attributable to ATIONS AND COMMUNITIES. exposure to silica that fail to meet the re- (a) IN GENERAL.—Because of the unique na- SA 2834. Ms. LANDRIEU submitted quirements of subparagraph (A) shall be pre- ture of asbestos exposure related to the as- an amendment intended to be proposed empted by this Act. bestos mining and milling operations in the to amendment SA 2746 proposed by Mr. (2) REQUIRED EVIDENCE.—In any claim to areas of Coalinga, New Idria, and King City, FRIST (for Mr. SPECTER (for himself and which paragraph (1) applies, the complaint in the State of California, the Administrator Mr. LEAHY)) to the bill S. 852, to create (or, for claims pending on the date of enact- shall waive the exposure requirements under a fair and efficient system to resolve ment of this Act, an amended pleading to be this subtitle for an individual who worked at filed within 60 days after such date, but not such a mining or milling operation, or lived claims of victims for bodily injury later than 60 days before trial) shall be ac- or worked within a 20 mile radius of such an caused by asbestos exposure, and for companied by— operation, for at least 12 consecutive months other purposes; which was ordered to (A) admissible evidence, including at a before December 31, 2005. Claimants under lie on the table; as follows: minimum, a B-reader’s report, and the un- this paragraph shall provide such supporting On page 122, between lines 17 and 18, in- derlying x-ray film showing that the claim documentation, as the Administrator shall sert the following: may be maintained and is not preempted require. (11) ASBESTOS EXPOSURE AS THE RESULT OF under paragraph (1); (b) MISCELLANEOUS.—Notwithstanding sec- A NATURAL OR OTHER DISASTER.— (B) notice of any previous lawsuit or claim tion (2)(a)(9), the Congress finds that among (A) IN GENERAL.—A claimant may file an for benefits in which the exposed person, or the communities hardest hit by this crisis exceptional medical claim with the Fund if another claiming on behalf of or through the have been those in or near the locations such claimant has been exposed to asbestos injured person, asserted an injury or dis- where asbestos fiber was mined and milled, in any area that is subject to a declaration ability based wholly or in part on exposure where for years the air and ground was con- by the President of a major disaster, as de- to asbestos; taminated and residents, as well as mine and fined under section 102 of the Robert T. Staf- (C) if known by the plaintiff after reason- mill workers, were exposed, and where citi- ford Disaster Relief and Emergency Assist- able inquiry by the plaintiff or his represent- zens continue to be taking ill even though ance Act (42 U.S.C. 5122), as the result of— ative, the history of the exposed person’s ex- mining operations ceased years ago. (i) the attack on the World Trade Center in posure, if any, to asbestos; and New York, New York on September 11, 2001; (D) copies of all medical and laboratory re- SA 2833. Ms. LANDRIEU submitted or ports pertaining to the exposed person that an amendment intended to be proposed (ii) Hurricane Katrina and Hurricane Rita refer to asbestos or asbestos exposure. to amendment SA 2746 proposed by Mr. of 2005 in the Gulf Region of the United (3) STATUTE OF LIMITATIONS.—In general, FRIST (for Mr. SPECTER (for himself and States. the statute of limitations for a silica claim shall be governed by applicable State law, Mr. LEAHY)) to the bill S. 852, to create (B) REVIEW OF EVIDENCE.—In reviewing medical evidence submitted by a claimant except that in any case under this sub- a fair and efficient system to resolve section, the statute of limitations shall only claims of victims for bodily injury under subparagraph (A)(i) or (ii), the Physi- cians Panel shall take into consideration the start to run when the plaintiff becomes im- caused by asbestos exposure, and for unique nature of these disasters and the po- paired. other purposes; which was ordered to tential for asbestos exposure resulting from (4) DUAL INJURY.—If an exposed person has lie on the table; as follows: these disasters. both a silica disease or conditions resulting On page 322, between lines 13 and 14, insert from exposure to silica and a disease or con- the following: SA 2835. Mr. KENNEDY submitted an dition resulting from exposure to asbestos, (C) SMALL BUSINESS CONCERNS.— amendment intended to be proposed to any damages awarded for a claim that meets (i) DEFINITION.—In this subparagraph, the amendment SA 2746 proposed by Mr. the requirements of paragraph (2)— (A) shall be limited to damages attrib- term ‘‘small business concern’’ has the same FRIST (for Mr. SPECTER (for himself and meaning as in section 3 of the Small Busi- utable to the exposed person’s exposure to Mr. LEAHY)) to the bill S. 852, to create silica; and ness Act (15 U.S.C. 632)). a fair and efficient system to resolve (ii) TREATMENT OF CLAIMS.—Except as pro- (B) shall not include damages attributable vided in clause (iv), in any civil action de- claims of victims for bodily injury to the exposed person’s exposure to asbestos. scribed under subparagraph (A), the court caused by asbestos exposure, and for other purposes; which was ordered to shall dismiss any asbestos claim against a SA 2836. Mr. KENNEDY submitted an lie on the table; as follows: small business concern, if such small busi- amendment intended to be proposed to ness concern proves that it was not involved On page 315, strike line 1 and all that fol- amendment SA 2746 proposed by Mr. in a business involving, and did not use con- lows through page 318, line 2, and insert the tractors performing duties involving— following: FRIST (for Mr. SPECTER (for himself and (I) handling raw asbestos; SEC. 403. EFFECT ON OTHER LAWS AND EXISTING Mr. LEAHY)) to the bill S. 852, to create (II) fabricating asbestos-containing prod- CLAIMS. a fair and efficient system to resolve ucts that could lead to exposure to raw as- (a) EFFECT ON FEDERAL AND STATE LAW.— claims of victims for bodily injury bestos; or The provisions of this Act shall supersede caused by asbestos exposure, and for (III) altering, repairing, or otherwise work- any Federal or State law insofar as such law other purposes; which was ordered to ing with asbestos-containing products that may relate to any asbestos claim, including lie on the table; as follows: could lead to exposure to asbestos fibers. any claim described under subsection (e)(2). (iii) PRIOR JUDGMENT.—In a civil action de- (b) EFFECT ON SILICA CLAIMS.— On page 392, after line 5, insert the fol- scribed under subparagraph (A) involving a (1) IN GENERAL.— lowing:

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00136 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1271 SEC. 503. CONTINUANCE OF TERMINAL HEALTH (III) All information that the claimant the claimant shall have 30 days to perfect CLAIMS. would be required to provide to the Adminis- the claim. If the claimant fails to perfect the Nothwithstanding section 106(f)(2) or any trator in support of a claim under sections claim within that 30-day period or the Ad- other provision of this Act, any individual 113(c) and 121. ministrator or claims facility determines who has filed a terminal health claim before (IV) A certification by the claimant that that the claim does not meet the require- the date of enactment of this Act may con- the information provided is true and com- ments of a terminal health claim, the claim tinue that terminal health claim in the plete. The certification provided under this shall not be eligible to proceed under this court where the case was pending on the date subclause shall be subject to the same pen- paragraph. A claimant may appeal any deci- of enactment of this Act. For terminal alties for false or misleading statements that sion issued by a claims facility with the Ad- health claims filed after the date of enact- would be applicable with regard to informa- ministrator in accordance with section 114. ment of this Act and before the Adminis- tion provided to the Administrator or claims (vii) FAILURE TO CERTIFY.—If the Adminis- trator certifies to Congress that the Fund is facility in support of a claim. trator or claims facility is unable to process operational and paying valid claims at a rea- (V) For terminal health claims arising the claim and does not make a determina- sonable rate, by claimants who do not elect after the date of enactment of this Act, the tion regarding the certification of the claim to seek an offer of judgment under section claimant shall identify each defendant that as required under clause (vi), the Adminis- 106(f)(2), the pending claim is not stayed and would be an appropriate defendant in a civil trator or claims facility shall within 10 days such claimants may continue the terminal action seeking damages for the asbestos after the end of the 60-day period referred to health claims where the case is filed. claim of the claimant. Identification of all under clause (vi)(I) provide notice of the fail- potential participants shall be made in good ure to act to the claimant and the defend- SA 2837. Mr. KENNEDY submitted an faith by the claimant. ants in the pending Federal or State court amendment intended to be proposed to (iv) TIMING.—A claimant who has filed a action or the defendants identified under amendment SA 2746 proposed by Mr. notice of their intent to seek a settlement clause (iii)(IV). If the Administrator or under clause (ii) shall within 60 days after claims facility fails to provide such notice FRIST (for Mr. SPECTER (for himself and filing notice provide to the Administrator or within 10 days, the claimant may elect to Mr. LEAHY)) to the bill S. 852, to create claims facility the information required provide the notice to the affected defendants a fair and efficient system to resolve under clause (iii). If a claimant has filed an to prompt a settlement offer. The Adminis- claims of victims for bodily injury exigent health claim under clause (ii) the trator or claims facility shall list all ter- caused by asbestos exposure, and for Administrator shall provide all affected de- minal health claims for which notice has other purposes; which was ordered to fendants the information required under been provided under this clause on the lie on the table; as follows: clause (iii). website established under clause (v). (v) WEBSITE.— (viii) FAILURE TO PAY.—If the Adminis- On page 46, line 18, strike all through page (I) POSTING.—The Administrator or claims trator or claims facility does not pay the 62, line 8, and insert the following: facility shall post the information described award as required under clause (xiii), the Ad- (1) STAY OF CLAIMS.—Notwithstanding any in subclause (II) to a secure website, acces- ministrator shall refer the certified claim other provision of this Act, any asbestos sible on a passcode-protected basis to par- within 10 days as a certified terminal health claim pending on the date of enactment of ticipants. claim to the defendants in the pending Fed- this Act, other than a terminal health claim (II) REQUIRED INFORMATION.—The website eral and State court action or to the poten- to which paragraph (2) of this subsection ap- established under subclause (I) shall contain tial defendants identified under clause plies, a claim to which section 403(d)(2) ap- a listing of— (iii)(IV) for terminal claims arising after the plies, a terminal health claim, or as other- (aa) each claimant that has filed a notice date of enactment of this Act. The Adminis- wise provided in section 402(f), is stayed. of intent to seek a settlement or claim under trator or claims facility shall list all ter- (2) TERMINAL HEALTH CLAIMS.— this clause; minal health claims for which notice has (A) PROCEDURES FOR SETTLEMENT OF TER- (bb) the name of such claimant; and been provided under this clause on the MINAL HEALTH CLAIMS.— (cc) if applicable— website established under clause (v). (i) IN GENERAL.—Any person that has filed (AA) the name of the court where such (ix) SETTLEMENT OFFER.—Any participant a terminal health claim, as provided under claim was filed; or participants may, within 30 days after re- subsection (c)(2), seeking a judgment or (BB) the case or docket number of such ceipt of such notice as provided under clause order for monetary damages in any Federal claim; and (vii) or (viii), file and serve on all parties and or State court before the date of the enact- (CC) the date such claim was filed. the Administrator a good faith settlement ment of this Act, shall seek a settlement in (III) PROHIBITIONS.—The website estab- offer in an aggregate amount not to exceed accordance with this paragraph. Any person lished under subclause (I) shall not contain the total amount to which the claimant with a terminal health claim, as provided specific health or medical information or so- would receive under section 131. If the aggre- under subsection (c)(2), that arises after such cial security numbers. gate amount offered by all participants ex- date of enactment shall seek a settlement in (IV) PARTICIPANT ACCESS.—A participant’s ceeds the award determined by the Adminis- accordance with this paragraph. access to the website established under sub- trator, all offers shall be deemed reduced (ii) FILING.— clause (I) shall be limited on a need to know pro-rata until the aggregate amount equals (I) IN GENERAL.—At any time before the basis, and participants shall not disclose or the award amount. An acceptance of such Fund or claims facility is certified as oper- sell data, or retain data for purposes other settlement offer for claims pending before ational and paying terminal health claims at than paying an asbestos claim. the date of enactment of this Act shall be a reasonable rate, any person with a ter- (V) VIOLATIONS.—Any person or other enti- subject to approval by the trial judge or au- minal health claim as described under clause ty that violates any provision of this clause, thorized magistrate in the court where the (i) shall file a notice of their intent to seek including by breaching any data posted on claim is pending. The court shall approve a settlement or shall file their exigent the website, shall be subject to an injunc- any such accepted offer within 20 days after health claim with the Administrator or tion, or civil penalties, or both. a request, unless there is evidence of bad claims facility. Filing of an exigent health (vi) ADMINISTRATOR OR CLAIMS FACILITY faith or fraud. No court approval is nec- claim with the Administrator or claims fa- CERTIFICATION OF SETTLEMENT.— essary if the terminal health claim was cer- cility may serve as notice of intent to seek (I) DETERMINATION.—Within 60 days after tified by the Administrator or claims facil- a settlement. the information under clause (iii) is pro- ity under clause (vi). (II) EXCEPTION.—Any person who seeks vided, the Administrator or claims facility (x) ACCEPTANCE OR REJECTION.—Within 20 compensation for an exigent health claim shall determine whether or not the claim days after receipt of the settlement offer, or from a trust in accordance with section 402(f) meets the requirements of a terminal health the amended settlement offer, the claimant shall not be eligible to seek a settlement or claim. shall either accept or reject such offer in settlement offer under this paragraph. (II) REQUIREMENTS MET.—If the Adminis- writing. If the amount of the settlement (iii) TERMINAL HEALTH CLAIM INFORMA- trator or claims facility determines that the offer made by the Administrator, claims fa- TION.—To file a terminal health claim, each claim meets the requirements of a terminal cility, or participants equals 100 percent of individual shall provide all of the following health claim, the Administrator or claims what the claimant would receive under the information: facility shall immediately— Fund, the claimant shall accept such settle- (I) The amount received or entitled to be (aa) issue and serve on all parties a certifi- ment in writing. received as a result of all collateral source cation of eligibility of such claim; (xi) OPPORTUNITY TO CURE.—If the settle- compensation under section 134, and copies (bb) determine the value of such claim ment offer is rejected for being less than of all settlement agreements and related under the Fund by subtracting from the what the claimant would receive under the documents sufficient to show the accuracy of amount in section 131 the total amount of Fund, the participants shall have 10 business that amount. collateral source compensation received by days to make an amended offer. If the (II) A description of any claims for com- the claimant; and amended offer equals 100 percent of what the pensation for an asbestos related injury or (cc) pay the award of compensation to the claimant would receive under the Fund, the disease filed by the claimant with any trust claimant under clause (xiii). claimant shall accept such settlement offer or class action trust, and the status or dis- (III) REQUIREMENTS NOT MET.—If the re- in writing. If the settlement offer is again re- position or any such claims. quirements under clause (iii) are not met, jected as less than what the claimant would

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00137 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1272 CONGRESSIONAL RECORD — SENATE February 14, 2006 receive under the Fund or if participants fail subparagraph (B) the claimant may seek a where such processing site has been identi- to make an amended offer, the claimant judgment or order for monetary damages fied by a Federal or State agency as having shall recover 150 percent of what the claim- from the court where the case is currently received or processed vermiculite ore from ant would receive under the Fund. If the pending or the appropriate Federal or State Libby, Montana. amount of the amended settlement offer court for claims arising after the date of en- On page 123, line 11, strike ‘‘(9)’’ and insert made by the Administrator, claims facility, actment of this Act. ‘‘(10)’’. or participants equals 150 percent of what (B) STAY TERMINATED AND REVERSION TO On page 125, line 19, strike ‘‘(10)’’ and insert the claimant would receive under the Fund, COURT.—If 9 months after a terminal health ‘‘(11)’’. the claimant shall accept such settlement in claim has been filed under subparagraph (A), On page 366, between line 11 and 12, insert writing. a claimant has not received a settlement the following: (xii) PAYMENT SCHEDULE.— under subparagraph (A)(xii) and the Admin- (b) NEW JERSEY PROCESSING SITE CLAIM- (I) MESOTHELIOMA CLAIMANTS.—For meso- istrator has not certified to Congress that ANTS.— thelioma claimants— the Fund or claims facility is operational (1) IN GENERAL.—Nothing is this Act shall (aa) an initial payment of 50 percent shall and paying terminal health claims at a rea- preclude the formation of a future fund for be made within 30 days after the date the sonable rate, the stay of claim provided the payment of eligible medical expenses re- settlement is accepted and the second and under paragraph (1) shall be lifted and such lated to treating asbestos-related disease for final payment shall be made 6 months after terminal health claimant, may immediately individuals who worked at a vermiculite date the settlement is accepted; or seek a judgment or order for monetary dam- processing site in the State of New Jersey, or (bb) if the Administrator determines that ages from the court where the case is cur- lived or worked within a 10 mile radius of the payment schedule would impose a severe rently pending or the appropriate Federal or such processing site. financial hardship on the Fund, or if the State court for claims arising after the date (2) COLLATERAL SOURCE COMPENSATION EX- court determines that the settlement offer of enactment of this Act. If a claimant has CEPTION.—The payment of any medical ex- would impose a severe financial hardship on failed to file a claim or notice of intent to pense under paragraph (1) shall not be collat- the participant, the payments may be ex- seek a settlement, as required under sub- eral source compensations as defined under tended 50 percent in 6 months and 50 percent paragraph (A)(ii), the provisions of this sub- section 134(a). 11 months after the date the settlement offer paragraph shall not apply. On page 366, line 12, strike ‘‘(b)’’ and insert is accepted. (c) CONTINUANCE OF TERMINAL HEALTH ‘‘(c)’’. (II) OTHER TERMINAL CLAIMANTS.—For CLAIMS.—Nothwithstanding section 106(f)(2) other terminal claimants, as defined under or any other provision of this Act, any indi- SA 2839. Mr. LAUTENBERG (for him- section 106(c)(2)(B) and (C)— vidual who has filed a terminal health claim self and Mr. MENENDEZ) submitted an (aa) the initial payment of 50 percent shall before the date of enactment of this Act may be made within 6 months after the date the amendment intended to be proposed to continue that terminal health claim in the amendment SA 2746 proposed by Mr. settlement is accepted and the second and court where the case was pending on the date FRIST (for Mr. SPECTER (for himself and final payment shall be made 12 months after of enactment of this Act. For terminal date the settlement is accepted; or health claims filed after the date of enact- Mr. LEAHY)) to the bill S. 852, to create (bb) if the Administrator determines that ment of this Act and before the Adminis- a fair and efficient system to resolve the payment schedule would impose a severe trator certifies to Congress that the Fund is claims of victims for bodily injury financial hardship on the Fund, or if the operational and paying valid claims at a rea- caused by asbestos exposure, and for court determines that the settlement offer sonable rate, by claimants who do not elect other purposes; which was ordered to would impose a severe financial hardship on to seek an offer of judgment under subpara- the participants, the payments may be ex- lie on the table; as follows: graph (A), the pending claim is not stayed tended 50 percent within 1 year after the On page 392, after line 5, insert the fol- and such claimants may continue the ter- date the settlement offer is accepted and 50 lowing: minal health claims where the case is filed. percent in 2 years after date the settlement SEC. 503. WAIVER FOR WORKERS AND RESIDENTS offer is accepted. SA 2838. Mr. LAUTENBERG (for him- OF VERMICULITE PROCESSING (III) RELEASE.—Once a claimant has re- SITES AND COMMUNITIES IN NEW ceived final payment of the accepted settle- self and Mr. MENENDEZ) submitted an JERSEY. ment offer, and penalty payment if applica- amendment intended to be proposed to (a) IN GENERAL.—Because of the unique na- ble, the claimant shall release any out- amendment SA 2746 proposed by Mr. ture of asbestos exposure related to the proc- standing asbestos claims. FRIST (for MR. SPECTER (for himself essing operations of vermiculite ore, the Ad- (xiii) RECOVERY OF COSTS.— and Mr. LEAHY)) to the bill S. 852, to ministrator shall waive the exposure require- (I) IN GENERAL.—Any participant whose create a fair and efficient system to re- ments under subtitle II for an individual who settlement offer is accepted may recover the solve claims of victims for bodily in- worked at a vermiculite processing site in cost of such settlement by deducting from the State of New Jersey, or lived or worked the participant’s next and subsequent con- jury caused by asbestos exposure, and within a 10 mile radius of such processing tributions to the Fund the full amount of the for other purposes; which was ordered site, for at least 12 consecutive months be- payment made by such participant to the to lie on the table; as follows: fore December 31, 2005. Claimants under this terminal health claimant, unless the Admin- On page 102, between lines 17 and 18, insert paragraph shall provide such supporting doc- istrator finds, on the basis of clear and con- the following: umentation, as the Administrator shall re- vincing evidence, that the participant’s offer (5) WAIVER FOR WORKERS AND RESIDENTS OF quire. is not in good faith. Any such payment shall VERMICULITE PROCESSING SITES AND COMMU- (b) VERMICULITE PROCESSING SITES.—The be considered a payment to the Fund for pur- NITIES IN NEW JERSEY.—Because of the unique claims procedures described under section poses of section 404(e)(1) and in response to nature of asbestos exposure related to the 121(g)(8) relating to Libby, Montana claim- the payment obligations imposed on partici- processing operations of vermiculite ore, the ants shall apply to any eligible claimant who pants in title II. Administrator shall waive the exposure re- worked at a vermiculite processing site in (II) REIMBURSEMENT.—Notwithstanding quirements under this subtitle for an indi- the State of New Jersey, or lived or worked subclause (I), if the deductions from the par- vidual who worked at a vermiculite proc- within a 10 mile radius of such processing ticipant’s next and subsequent contributions essing site in the State of New Jersey, or site, as described under subsection (a), and to the Fund do not fully recover the cost of lived or worked within a 10 mile radius of where such processing site has been identi- such payments on or before its third annual such processing site, for at least 12 consecu- fied by a Federal or State agency as having contribution to the Fund, the Fund shall re- tive months before December 31, 2005. Claim- received or processed vermiculite ore from imburse such participant for such remaining ants under this paragraph shall provide such Libby, Montana. cost not later than 6 months after the date of supporting documentation, as the Adminis- (c) VERMICULITE PROCESSING SITE CLAIM- the third scheduled Fund contribution. trator shall require. ANTS.— (xiv) FAILURE TO MAKE OFFER.—If partici- On page 102, line 18, strike ‘‘(5)’’ and insert (1) IN GENERAL.—Nothing is this Act shall pants fail to make a settlement offer within ‘‘(6)’’. preclude the formation of a future fund for the 30-day period described under clause (ix) On page 104, line 14, strike ‘‘(6)’’ and insert the payment of eligible medical expenses re- or make amended offers within the 10 busi- ‘‘(7)’’. lated to treating asbestos-related diseases ness day cure period described under clause On page 123, between lines 10 and 11, insert for individuals who worked at a vermiculite (xi), the claimant shall be entitled to recover the following: processing site in the State of New Jersey, or 150 percent of what the claimant would re- (9) NEW JERSEY PROCESSING SITES.—The lived or worked within a 10 mile radius of ceive under the Fund. claims procedures described under paragraph such processing site, as described under sub- (xv) FAILURE TO PAY.—If a participant fails (8) relating to Libby, Montana claimants section (a). to pay an accepted settlement offer within shall apply to any eligible claimant who (2) COLLATERAL SOURCE COMPENSATION EX- the payment schedule under clause (xii), the worked at a vermiculite processing site in CEPTION.—The payment of any medical ex- claimant shall be entitled to recover 150 per- the State of New Jersey, or lived or worked pense under paragraph (1) shall not be collat- cent of what the claimant would receive within a 10 mile radius of such processing eral source compensations as defined under under the Fund. If the stay is lifted under site, as described under subsection (c)(5), and section 134(a).

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00138 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1273 SA 2840. Mr. ENSIGN submitted an SEC. 503. WAIVER FOR WORKERS AND RESIDENTS source compensation as defined under sec- amendment intended to be proposed to OF VERMICULITE PROCESSING tion 134(a). SITES AND COMMUNITIES. amendment SA 2746 proposed by Mr. (d) MISCELLANEOUS.—Section (2)(a)(9) shall (a) WAIVER FOR WORKERS AND RESIDENTS OF have no force or effect. FRIST (for Mr. SPECTER (for himself and VERMICULITE MINING AND PROCESSING COMMU- (e) DEFINITION.—For purposes of this sec- Mr. LEAHY)) to the bill S. 852, to create NITIES.— tion, the term ‘‘Governmental agency’’ a fair and efficient system to resolve (1) IN GENERAL.—Because of the nature of means any regulatory or administrative unit claims of victims for bodily injury asbestos exposure related to the vermiculite responsible for evaluating sites that received caused by asbestos exposure, and for mining operations in Libby, Montana, and and processed vermiculite ore mined in other purposes; which was ordered to the vermiculite processing operations associ- Libby, Montana. ated with such mining operations, the Ad- lie on the table; as follows: ministrator shall waive the exposure require- SA 2843. Mr. GRAHAM submitted an On page 298, strike lines 16 and 17, and in- ments under this subtitle for individuals who amendment intended to be proposed to sert the following: worked— amendment SA 2746 proposed by Mr. ‘‘(A) the trust qualifies as a trust under (A) at the vermiculite mining operations FRIST (for Mr. SPECTER (for himself and section 201 of that Act; and in Libby, Montana, or lived or worked within Mr. LEAHY)) to the bill S. 852, to create ‘‘(B) the trust does not file an election a 20-mile radius of such mining operations, a fair and efficient system to resolve under section 410 of that Act.’’. for at least 12 months before December 31, claims of victims for bodily injury On page 301, line 24, insert ‘‘or for electing 2004; and to opt out under section 410 of the Fairness (B) at sites processing vermiculite mined caused by asbestos exposure, and for in Asbestos Injury Resolution Act of 2006 ’’ from mining operations in Libby, Montana, other purposes; which was ordered to before the period. that— lie on the table; as follows: On page 375, after line 23, insert the fol- (i) the United States Environmental Pro- On page 392, after line 5, insert the fol- lowing: tection Agency has designated as requiring lowing: SEC. 410. OPT-OUT RIGHTS OF CERTAIN TRUSTS further action on the basis of current con- SEC. 503. WAIVER FOR WORKERS AND RESIDENTS AND EFFECT OF OPT-OUT. tamination as of the date of enactment of OF VERMICULITE PROCESSING SITES AND COMMUNITIES. (a) OPT-OUT RIGHTS.—Any trust defined this Act; or (a) WAIVER FOR WORKERS AND RESIDENTS OF under section 201(8) that has been established (ii) processed at least 100,000 tons or more VERMICULITE MINING AND PROCESSING COMMU- or formed under a plan of reorganization of vermiculite from the Libby, Montana, NITIES.— under chapter 11 of title 11, United States mine; or (iii) currently or subsequently have been (1) IN GENERAL.—Notwithstanding section Code, confirmed by a duly entered order or 121(c)(4), because of the nature of asbestos judgment of a court, which order or judg- identified by any Governmental agency as having processed vermiculite from the exposure related to the vermiculite mining ment is no longer subject to any appeal or operations in Libby, Montana, and the judicial review on the date of enactment of Libby, Montana, mine that caused risk from asbestos exposure; or vermiculite processing operations associated this Act, may elect not to be covered by this with such mining operations, the Adminis- Act by filing written notice of such election (C) or lived within a 20 mile radius of a processing site described in subparagraph trator shall waive the exposure requirements to the Administrator not later than 90 days under subtitle II for individuals who after the date of enactment of this Act. (B), for at least 12 months before December 31, 2004. worked— (b) EFFECT OF OPT-OUT.— (2) REQUIRED DOCUMENTATION.—Claimants (A) at the vermiculite mining operations (1) IN GENERAL.—Neither this Act nor any in Libby, Montana, or lived or worked within amendment made by this Act shall apply under this paragraph shall provide such sup- porting documentation as the Administrator a 20-mile radius of such mining operations, to— for at least 12 months before December 31, (A) any trust that makes an election under shall require. (b) VERMICULITE MINING AND PROCESSING 2004; and subsection (a); or CLAIMANTS.— (B) at sites processing vermiculite mined (B) any claim or future demand that has (1) IN GENERAL.—Notwithstanding section from mining operations in Libby, Montana, been channeled to that trust. 121(g)(8), a vermiculite mining and proc- that— (2) ASSETS AND OTHER RIGHTS AND CLAIMS.— essing claimant, as described under sub- (i) the United States Environmental Pro- A trust that makes an election under sub- section (a), may elect to have the claimant’s tection Agency has designated as requiring section (a) shall retain all of its assets. The claim designated as an exceptional medical further action on the basis of current con- contractual and other rights of a trust mak- claim and referred to a Physicians Panel for tamination as of the date of enactment of ing an election under subsection (a) and review. In reviewing the medical evidence this Act; or claims against other persons (whether held submitted by such a claimant in support of (ii) processed at least 100,000 tons or more directly or indirectly by others for the ben- that claim, the Physicians Panel shall take of vermiculite from the Libby, Montana, efit of the trust), including the rights and into consideration the unique and serious na- mine; or claims of the trust against insurers, shall be ture of asbestos exposure in vermiculite min- (C) or lived within a 20 mile radius of a preserved and not abrogated by this Act. ing and processing operations, including the processing site described in subparagraph nature of the pleural disease related to as- (B), for at least 12 months before December SA 2841. Mr. BURNS submitted an bestos exposure from such sites. 31, 2004. amendment intended to be proposed to (2) CLAIMS.—For all claims for Levels II (2) REQUIRED DOCUMENTATION.—Claimants amendment SA 2746 proposed by Mr. through IV filed by vermiculite mining and under this subsection shall provide such sup- FRIST (for Mr. SPECTER (for himself and processing claimants, as described under sub- porting documentation as the Administrator Mr. LEAHY)) to the bill S. 852, to create section (a), once the Administrator or the shall require. a fair and efficient system to resolve Physicians Panel issues a certificate of med- (b) VERMICULITE MINING AND PROCESSING CLAIMANTS.— claims of victims for bodily injury ical eligibility to such claimant, and not- withstanding the disease category des- (1) IN GENERAL.—Notwithstanding section caused by asbestos exposure, and for ignated in the certificate or the eligible dis- 121(g)(8), a vermiculite mining and proc- other purposes; which was ordered to ease or condition established in accordance essing claimant, as described under sub- lie on the table; as follows: with this section, or the value of the award section (a), may elect to have the claimant’s On page 70, line 9, strike ‘‘TLC or FVC’’ determined in accordance with section 114, claim designated as an exceptional medical and insert ‘‘TLC, FVC, or DLCO’’. such claimant shall be entitled to an award claim and referred to a Physicians Panel for On page 119, line 22, strike ‘‘TLC or FVC’’ that is not less than that awarded to claim- review. In reviewing the medical evidence and insert ‘‘TLC, FVC, or DLCO’’. ants who suffer from asbestosis, Level IV. submitted by such a claimant in support of For all malignant claims filed by that claim, the Physicians Panel shall take vermiculite mining and processing claim- into consideration the unique and serious na- SA 2842. Mr. GRAHAM submitted an ture of asbestos exposure in vermiculite min- amendment intended to be proposed to ants, such claimant shall be entitled to an award that corresponds to the malignant dis- ing and processing operations, including the amendment SA 2746 proposed by Mr. ease category designated by the Adminis- nature of the pleural disease related to as- FRIST (for Mr. SPECTER (for himself and trator or the Physicians Panel. bestos exposure from such sites. Mr. LEAHY)) to the bill S. 852, to create (c) VERMICULITE MINING AND PROCESSING (2) CLAIMS.—For all claims for Levels II a fair and efficient system to resolve CLAIMANTS.—Nothing in this Act shall pre- through IV filed by vermiculite mining and claims of victims for bodily injury clude the formation of a fund for the pay- processing claimants, as described under sub- caused by asbestos exposure, and for ment of eligible medical expenses related to section (a), once the Administrator or the Physicians Panel issues a certificate of med- other purposes; which was ordered to treating asbestos-related disease for current and former residents of vermiculite mining ical eligibility to such claimant, and not- lie on the table; as follows: and processing communities, as described withstanding the disease category des- On page 392, after line 5, insert the fol- under section 121(c)(4). The payment of any ignated in the certificate or the eligible dis- lowing: such medical expenses shall not be collateral ease or condition established in accordance

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A 1982 Environmental that is not less than that awarded to claim- (3) The injuries caused by asbestos can Protection Agency-supported sutdy con- ants who suffer from asbestosis, Level IV. have latency periods of up to 40 years, and cluded that oreshipped out of Libby con- For all malignant claims filed by even limited exposure to some forms of as- tained 0.3 to 7 percent asbestos, by weight. vermiculite mining and processing claim- bestos may result in injury in some cases. (12) In Libby, Montana, exposure pathways ants, such claimant shall be entitled to an (4) Asbestos litigation has had a significant are and were not limited to the workplace, award that corresponds to the malignant dis- detrimental effect on the country’s economy, rather, for decades there has been an unprec- ease category designated by the Adminis- driving companies into bankruptcy, divert- edented 24 hour per day contamination of the trator or the Physicians Panel. ing resources from those who are truly sick, community’s homes, playgrounds, gardens, (c) VERMICULITE MINING AND PROCESSING and endangering jobs and pensions. and community air, such that the entire CLAIMANTS.—Nothing in this Act shall pre- (5) The scope of the asbestos litigation cri- community of Libby, Montana, has been des- clude the formation of a fund for the pay- sis cuts across every State and virtually ignated a Superfund site and is listed on the ment of eligible medical expenses related to every industry. Environmental Protection Agency’s Na- treating asbestos-related disease for current (6) The United States Supreme Court has tional Priorities List. and former residents of vermiculite mining recognized that Congress must act to create (13) These multiple exposure pathways and processing communities, as described a more rational asbestos claims system. In have caused severe asbestos disease and under section 121(c)(4). The payment of any 1991, a Judicial Conference Ad Hoc Com- death not only in former workers at the such medical expenses shall not be collateral mittee on Asbestos Litigation, appointed by mine and milling facilities, but also in the source compensation as defined under sec- Chief Justice William Rehnquist, found that workers’ spouses and children, and in com- tion 134(a). the ‘‘ultimate solution should be legislation munity members who had no direct contact (d) MISCELLANEOUS.—Section (2)(a)(9) shall recognizing the national proportions of the with the mine. According to the Environ- have no force or effect. problem . . . and creating a national asbes- mental Protection Agency, some potentially tos dispute resolution scheme .... The important alternative pathways for past as- SA 2844. Mr. GRAHAM submitted an Court found in 1997 in Amchem Products Inc. bestos exposure include elevated concentra- amendment intended to be proposed to v. Windsor, 521 U.S. 591, 595 (1997), that ‘‘[t]he tions of asbestos in ambient air and rec- amendment SA 2746 proposed by Mr. argument is sensibly made that a nationwide reational exposures from children playing in FRIST (for Mr. SPECTER (for himself and administrative claims processing regime piles of vermiculite. Furthermore, the Envi- Mr. LEAHY)) to the bill S. 852, to create would provide the most secure, fair, and effi- ronmental Protection Agency has deter- a fair and efficient system to resolve cient means of compensating victims of as- mined that current potential pathways of ex- bestos exposure.’’ In 1999, the Court in Ortiz posure include vermiculite placed in walls claims of victims for bodily injury v. Fibreboard Corp., 527 U.S. 819, 821 (1999), and attics as thermal insulation, vermiculite caused by asbestos exposure, and for found that the ‘‘elephantine mass of asbestos or ore used as road bed material, ore used as other purposes; which was ordered to cases . . . defies customary judicial adminis- ornamental landscaping, and vermiculite or lie on the table; as follows: tration and calls for national legislation.’’ concentrated ore used as a soil and garden On page 392, after line 5, insert the fol- That finding was again recognized in 2003 by amendment or aggregate in driveways. lowing: the Court in Norfolk & Western Railway Co. (14) The Environmental Protection Agency SEC. 503. LIBBY, MONTANA CLAIMANTS. v. Ayers, 123 S. Ct. 1210 (2003). also concluded, ‘‘Asbestos contamination ex- Notwithstanding any other provision of (7) This crisis, and its significant effect on ists in a number of potential source mate- this Act, any Libby, Montana claimant shall the health and welfare of the people of the rials at multiple locations in and around the be treated in the same manner and to the United States, on interstate and foreign residential and commercial area of Libby same extent as any other claimant under commerce, and on the bankruptcy system, . . . While data are not yet sufficient to per- this Act, including for provisions relating compels Congress to exercise its power to form reliable human-health risk evaluations to— regulate interstate commerce and create for all sources and all types of disturbance, (1) eligibility under the Fund; this legislative solution in the form of a na- it is apparent that releases of fiber con- (2) the filing of claims; and tional asbestos injury claims resolution pro- centrations higher than Occupational Safety (3) awards under the Fund. gram to supersede all existing methods to and Health Administration standards may compensate those injured by asbestos, except occur in some cases . . . and that screening- SA 2845. Mr. BURNS (for himself and as specified in this Act. level estimates of lifetime excess cancer risk Mr. BAUCUS) submitted an amendment (8) This crisis has also imposed a delete- can exceed the upper-bound risk range of 1E– intended to be proposed to amendment rious burden upon the United States bank- 04 usually used by the Environmental Pro- ruptcy courts, which have assumed a heavy tection Agency for residents under a variety SA 2746 proposed by Mr. FRIST (for Mr. burden of administering complicated and of exposure scenarios. The occurrence of non- SPECTER (for himself and Mr. LEAHY)) protracted bankruptcies with limited per- occupational asbestos-related disease that to the bill S. 852, to create a fair and sonnel. has been observed among Libby residents is efficient system to resolve claims of (9) This crisis has devastated many com- extremely unusual, and has not been associ- victims for bodily injury caused by as- munities across the country, but hardest hit ated with asbestos mines elsewhere, sug- bestos exposure, and for other pur- has been Libby, Montana, where tremolite gesting either very high and prolonged envi- poses; which was ordered to lie on the asbestos, 1 of the most deadly forms of asbes- ronmental exposures and/or increased tox- tos, was contained in the vermiculite ore icity of this form of amphibole asbestos.’’. table; as follows: mined from the area and despite ongoing (15) According to a November 2003 article On page 119, line 22, strike ‘‘TLC or FVC’’ cleanup by the Environmental Protection from the Journal Environmental Health Per- and insert ‘‘TLC, FVC, or DLCO’’. Agency, many still suffer from the deadly spectives titled, Radiographic Abnormalities dust. and Exposure to Asbestos-Contaminated SA 2846. Mr. CORNYN submitted an (10) The asbestos found in Libby, Montana, Vermiculite in the Community of Libby, amendment intended to be proposed to tremolite asbestos, has demonstrated an un- Montana, USA, Libby residents who have amendment SA 2746 proposed by Mr. usually high level of toxicity, as compared to evidence of ‘‘no apparent exposure’’, i.e., did FRIST (for Mr. SPECTER (for himself and chrysotile asbestos. Diseases contracted not work with asbestos, were not a family Mr. LEAHY)) to the bill S. 852, to create from this tremolite asbestos are unique and member of a former worker, etc., had a a fair and efficient system to resolve highly progressive. These diseases typically greater rate of pleural abnormalities (6.7 per- claims of victims for bodily injury manifest in a characteristic pleural disease cent) than did those in control groups or caused by asbestos exposure, and for pattern, and often result in severe impair- general populations found in other studies ment or death without radiographic intersti- from other states (which ranged from 0.2 per- other purposes; which was ordered to tial disease or typical chrysotile markers of cent to 4.6 percent). ‘‘Given the ubiquitous lie on the table; as follows: radiographic severity. According to the nature of vermiculite contamination in Strike all after the enacting clause and in- Agency for Toxic Substances and Disease Libby, along with historical evidence of ele- sert the following: Registry previous studies by the National In- vated asbestos concentrations in the air, it SECTION 1. SHORT TITLE. stitutes of Occupational Safety and Health would be difficult to find participants who (a) SHORT TITLE.—This Act may be cited as document significantly increased rates of could be characterized as unexposed.’’. the ‘‘Fairness in Asbestos Injury Resolution pulmonary abnormalities and disease (asbes- (16) Nothing in this Act is intended to in- Act of 2006’’ or the ‘‘FAIR Act of 2006’’. tosis and lung cancer) among former work- crease the Federal deficit or impose any bur- SEC. 2. FINDINGS AND PURPOSE. ers. den on the taxpayer. The Office of Asbestos (a) FINDINGS.—Congress finds the fol- (11) Environmental Protection Agency sup- Disease Compensation established under this lowing: ported studies have determined that the raw Act shall be privately funded by annual pay- (1) Millions of Americans have been ex- vermiculite ore mined and milled in Libby, ments from defendant participants that have posed to forms of asbestos that can have dev- Montana contained 21 to 26 percent asbestos, been subject to asbestos liability and their astating health effects. by weight. The milled ore, resulting from the insurers. Section 406(b) of this Act expressly

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00140 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1275 provides that nothing in this Act shall be death or compensation policy, program or by a duly entered order or judgment of a construed to create any obligation of funding plan; court that is no longer subject to any appeal from the United States or to require the (iv) claims arising under any employment or judicial review, and the substantial con- United States to satisfy any claims if the contract or collective bargaining agreement; summation, as such term is defined in sec- amounts in the Fund are inadequate. Any (v) claims arising out of medical mal- tion 1101(2) of title 11, United States Code, of borrowing by the Fund is limited to monies practice; or such plan of reorganization has occurred. expected to be paid into the Fund, and the (vi) any claim arising under— (ii) APPLICABILITY.—Clause (i) shall not Administrator shall have no fiscal authroity (I) the Americans with Disabilities Act of apply to a person who may be liable under beyond the amount of private money coming 1990 (42 U.S.C. 12101 et seq.); subtitle A of title II based on prior asbestos into the Fund. This Act provides the Admin- (II) title VII of the Civil Rights Act of 1964 expenditures related to asbestos claims that istrator with broad enforcement authority to (42 U.S.C. 2000e et seq.); are not covered by an injunction described pursue debts to the Fund owed by defendant (III) the Age Discrimination in Employ- under clause (i). participants or insurer participants and ment Act of 1967 (29 U.S.C. 621 et seq.); (13) PERSON.—The term ‘‘person’’— their successors in interest. (IV) the Equal Pay Act of 1963 (29 U.S.C. (A) means an individual, trust, firm, joint (b) PURPOSE.—The purpose of this Act is 206); stock company, partnership, association, in- to— (V) the Family and Medical Leave Act of surance company, reinsurance company, or (1) create a privately funded, publicly ad- 1993 (29 U.S.C. 2601 et seq.); corporation; and ministered fund to provide the necessary re- (VI) section 1979 of the Revised Statutes of (B) does not include the United States, any sources for a fair and efficient system to re- the United States (42 U.S.C. 1983); or State or local government, or subdivision solve asbestos injury claims that will pro- (VII) the Rehabilitation Act of 1973 (29 thereof, including school districts and any vide compensation for legitimate present U.S.C. 701 et seq.). general or special function governmental and future claimants of asbestos exposure as (4) ASBESTOS CLAIMANT.—The term ‘‘asbes- unit established under State law. provided in this Act; tos claimant’’ means an individual who files (14) STATE.—The term ‘‘State’’ means any (2) provide compensation to those present a claim under section 113. State of the United States and also includes and future victims based on the severity of (5) CIVIL ACTION.—The term ‘‘civil action’’ the District of Columbia, Commonwealth of their injuries, while establishing a system means all suits of a civil nature in State or Puerto Rico, the Northern Mariana Islands, flexible enough to accommodate individuals Federal court, whether cognizable as cases at the Virgin Islands, Guam, American Samoa, whose conditions worsens; law or in equity or in admiralty, but does and any other territory or possession of the (3) relieve the Federal and State courts of not include an action relating to any work- United States or any political subdivision of the burden of the asbestos litigation; and ers’ compensation law, or a proceeding for any of the entities under this paragraph. (4) increase economic stability by resolv- benefits under any veterans’ benefits pro- (15) SUBSTANTIALLY CONTINUES.—The term ing the asbestos litigation crisis that has gram. ‘‘substantially continues’’ means that the bankrupted companies with asbestos liabil- (6) COLLATERAL SOURCE COMPENSATION.— business operations have not been signifi- ity, diverted resources from the truly sick, The term ‘‘collateral source compensation’’ cantly modified by the change in ownership. and endangered jobs and pensions. means the compensation that the claimant (16) SUCCESSOR IN INTEREST.—The term received, or is entitled to receive, from a de- ‘‘successor in interest’’ means any person SEC. 3. DEFINITIONS. fendant or an insurer of that defendant, or that, in 1 or a series of transactions, acquires In this Act, the following definitions shall compensation trust as a result of a final all or substantially all of the assets and apply: judgment or settlement for an asbestos-re- properties (including, without limitation, (1) ADMINISTRATOR.—The term ‘‘Adminis- lated injury that is the subject of a claim under section 363(b) or 1123(b)(4) of title 11, trator’’ means the Administrator of the Of- filed under section 113. United States Code), and substantially con- fice of Asbestos Disease Compensation ap- (7) ELIGIBLE DISEASE OR CONDITION.—The tinues the business operations, of a partici- pointed under section 101(b). term ‘‘eligible disease or condition’’ means pant. The factors to be considered in deter- (2) ASBESTOS.—The term ‘‘asbestos’’ in- the extent that an illness meets the medical mining whether a person is a successor in in- cludes— criteria requirements established under sub- terest include— (A) chrysotile; title C of title I. (A) retention of the same facilities or loca- (B) amosite; (8) EMPLOYERS’ LIABILITY ACT.—The term tion; (C) crocidolite; ‘‘Act of April 22, 1908 (45 U.S.C. 51 et seq.), (B) retention of the same employees; (D) tremolite asbestos; commonly known as the Employer’s Liabil- (C) maintaining the same job under the (E) winchite asbestos; ity Act’’ shall, for all purposes of this Act, same working conditions; (F) richterite asbestos; include the Act of June 5, 1920 (46 U.S.C. App. (D) retention of the same supervisory per- (G) anthophyllite asbestos; 688), commonly known as the Jones Act, and sonnel; (H) actinolite asbestos; the related phrase ‘‘operations as a common (E) continuity of assets; (I) asbestiform amphibole minerals; carrier by railroad’’ shall include operations (F) production of the same product or offer (J) any of the minerals listed under sub- as an employer of seamen. of the same service; paragraphs (A) through (I) that has been (9) FUND.—The term ‘‘Fund’’ means the As- (G) retention of the same name; chemically treated or altered, and any bestos Injury Claims Resolution Fund estab- (H) maintenance of the same customer asbestiform variety, type, or component lished under section 221. base; thereof; and (10) INSURANCE RECEIVERSHIP PROCEEDING.— (I) identity of stocks, stockholders, and di- (K) asbestos-containing material, such as The term ‘‘insurance receivership pro- rectors between the asset seller and the pur- asbestos-containing products, automotive or ceeding’’ means any State proceeding with chaser; or industrial parts or components, equipment, respect to a financially impaired or insol- (J) whether the successor holds itself out improvements to real property, and any vent insurer or reinsurer including the liq- as continuation of previous enterprise, but other material that contains asbestos in any uidation, rehabilitation, conservation, super- expressly does not include whether the per- physical or chemical form. vision, or ancillary receivership of an insurer son actually knew of the liability of the par- (3) ASBESTOS CLAIM.— under State law. ticipant under this Act. (A) IN GENERAL.—The term ‘‘asbestos (11) LAW.—The term ‘‘law’’ includes all (17) VETERANS’ BENEFITS PROGRAM.—The claim’’ means any claim, premised on any law, judicial or administrative decisions, term ‘‘veterans’ benefits program’’ means theory, allegation, or cause of action for rules, regulations, or any other principle or any program for benefits in connection with damages or other relief presented in a civil action having the effect of law. military service administered by the Vet- action or bankruptcy proceeding, directly, (12) PARTICIPANT.— erans’ Administration under title 38, United indirectly, or derivatively arising out of, (A) IN GENERAL.—The term ‘‘participant’’ States Code. based on, or related to, in whole or part, the means any person subject to the funding re- (18) WORKERS’ COMPENSATION LAW.—The health effects of exposure to asbestos, in- quirements of title II, including— term ‘‘workers’ compensation law’’— cluding loss of consortium, wrongful death, (i) any defendant participant subject to li- (A) means a law respecting a program ad- and any derivative claim made by, or on be- ability for payments under subtitle A of that ministered by a State or the United States half of, any exposed person or any represent- title; to provide benefits, funded by a responsible ative, spouse, parent, child, or other relative (ii) any insurer participant subject to a employer or its insurance carrier, for occu- of any exposed person. payment under subtitle B of that title; and pational diseases or injuries or for disability (B) EXCLUSION.—The term does not in- (iii) any successor in interest of a partici- or death caused by occupational diseases or clude— pant. injuries; (i) claims alleging damage or injury to tan- (B) EXCEPTION.— (B) includes the Longshore and Harbor gible property; (i) IN GENERAL.—A defendant participant Workers’ Compensation Act (33 U.S.C. 901 et (ii) claims for benefits under a workers’ shall not include any person protected from seq.) and chapter 81 of title 5, United States compensation law or veterans’ benefits pro- any asbestos claim by reason of an injunc- Code; and gram; tion entered in connection with a plan of re- (C) does not include the Act of April 22, (iii) claims arising under any govern- organization under chapter 11 of title 11, 1908 (45 U.S.C. 51 et seq.), commonly known mental or private health, welfare, disability, United States Code, that has been confirmed as the Employers’ Liability Act, or damages

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00141 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1276 CONGRESSIONAL RECORD — SENATE February 14, 2006 recovered by any employee in a liability ac- (C) the sums necessary for conducting the ment or practice under this Act. The Admin- tion against an employer. studies required under this Act; istrator shall prescribe appropriate regula- (19) CLASS ACTION TRUST.—The term ‘‘class (D) all administrative and legal expenses; tions to implement paragraph (1)(H). action trust’’ means a trust or similar entity and (3) SELECTION OF DEPUTY ADMINISTRA- established to hold assets for the payment of (E) any other sum that could be attrib- TORS.—The Administrator shall select a Dep- asbestos claims asserted against a debtor or utable to the Fund. uty Administrator for Claims Administra- participating defendant, under a settlement (b) APPOINTMENT OF ADMINISTRATOR.— tion to carry out the Administrator’s respon- that— (1) IN GENERAL.—The Administrator of the sibilities under this title and a Deputy Ad- (A) is a settlement of class action claims Office of Asbestos Disease Compensation ministrator for Fund Management to carry under rule 23 of the Federal Rules of Civil shall be appointed by the President. The Ad- out the Administrator’s responsibilities Procedure; and ministrator shall serve for a term of 10 under title II of this Act. The Deputy Admin- (B) has been approved by a final judgment years. istrators shall report directly to the Admin- of a United States district court before the (2) REPORTING.—The Administrator shall istrator and shall be in the Senior Executive date of enactment of this Act. report directly to the Assistant Secretary of Service. (20) DEBTOR.—The term ‘‘debtor’’— Labor for the Employment Standards Ad- (d) EXPEDITIOUS DETERMINATIONS.—The Ad- (A) means— ministration. ministrator shall prescribe rules to expedite (i) a person that is subject to a case pend- (c) DUTIES OF ADMINISTRATOR.— claims for asbestos claimants with terminal ing under a chapter of title 11, United States (1) IN GENERAL.—The Administrator shall circumstances in order to expedite the pay- Code, on the date of enactment of this Act or be responsible for— ment of such claims as soon as possible after at any time during the 1-year period imme- (A) processing claims for compensation for startup of the Fund. The Administrator shall diately preceding that date, irrespective of asbestos-related injuries and paying com- contract out the processing of such claims. whether the debtor’s case under that title pensation to eligible claimants under the (e) AUDIT AND PERSONNEL REVIEW PROCE- has been dismissed; and criteria and procedures established under DURES.—The Administrator shall establish (ii) all of the direct or indirect majority- title I; audit and personnel review procedures for owned subsidiaries of a person described (B) determining, levying, and collecting as- evaluating the accuracy of eligibility rec- ommendations of agency and contract per- under clause (i), regardless of whether any sessments on participants under title II; sonnel. such majority-owned subsidiary has a case (C) appointing or contracting for the serv- (f) APPLICATION OF FOIA.— pending under title 11, United States Code; ices of such personnel, making such expendi- (1) IN GENERAL.—Section 552 of title 5, and tures, and taking any other actions as may be necessary and appropriate to carry out United States Code (commonly referred to as (B) shall not include an entity— the responsibilities of the Office, including the Freedom of Information Act) shall apply (i) subject to chapter 7 of title 11, United entering into cooperative agreements with to the Office of Asbestos Disease Compensa- States Code, if a final decree closing the es- other Federal agencies or State agencies and tion and the Asbestos Insurers Commission. tate shall have been entered before the date entering into contracts with nongovern- (2) CONFIDENTIALITY OF FINANCIAL of enactment of this Act; or mental entities; RECORDS.— (ii) subject to chapter 11 of title 11, United (D) conducting such audits and additional (A) IN GENERAL.—Any person may label States Code, if a plan of reorganization for oversight as necessary to assure the integ- any record submitted under this section as a such entity shall have been confirmed by a rity of the program; confidential commercial or financial record duly entered order or judgment of a court (E) managing the Asbestos Injury Claims for the purpose of requesting exemption from that is no longer subject to any appeal or ju- Resolution Fund established under section disclosure under section 552(b)(4) of title 5, dicial review, and the substantial con- 221, including— United States Code. summation, as such term is defined in sec- (i) administering, in a fiduciary capacity, (B) DUTIES OF ADMINISTRATOR AND CHAIR- tion 1101(2) of title 11, United States Code, of the assets of the Fund for the primary pur- MAN OF THE ASBESTOS INSURERS COMMISSION.— such plan of reorganization has occurred. pose of providing benefits to asbestos claim- The Administrator and Chairman of the As- (21) TRUST.—The term ‘‘trust’’ means any ants and their beneficiaries; bestos Insurers Commission— trust, as described in sections 524(g)(2)(B)(i) (ii) defraying the reasonable expenses of (i) shall adopt procedures for— or 524(h) of title 11, United States Code, or administering the Fund; (I) handling submitted records marked established in conjunction with an order (iii) investing the assets of the Fund in ac- confidential; and issued under section 105 of title 11, United cordance with section 222(b); (II) protecting from disclosure records they States Code, established or formed under the (iv) retaining advisers, managers, and determine to be confidential commercial or terms of a chapter 11 plan of reorganization, custodians who possess the necessary facili- financial information exempt under section which in whole or in part provides compensa- ties and expertise to provide for the skilled 552(b)(4) of title 5, United States Code; and tion for asbestos claims. and prudent management of the Fund, to as- (ii) may establish a pre-submission deter- TITLE I—ASBESTOS CLAIMS RESOLUTION sist in the development, implementation and mination process to protect from disclosure Subtitle A—Office of Asbestos Disease maintenance of the Fund’s investment poli- records on reserves and asbestos-related li- Compensation cies and investment activities, and to pro- abilities submitted by any defendant partici- SEC. 101. ESTABLISHMENT OF OFFICE OF ASBES- vide for the safekeeping and delivery of the pant that is exempt under section 552(b)(4) of TOS DISEASE COMPENSATION. Fund’s assets; and title 5, United States Code. (a) IN GENERAL.— (v) borrowing amounts authorized by sec- (C) REVIEW OF COMPLAINTS.—Nothing in (1) ESTABLISHMENT.—There is established tion 221(b) on appropriate terms and condi- this section shall supersede or preempt the within the Department of Labor the Office of tions, including pledging the assets of or de novo review of complaints filed under sec- Asbestos Disease Compensation (hereinafter payments to the Fund as collateral; tion 552(b)(4) of title 5, United States Code. referred to in this Act as the ‘‘Office’’), (F) promulgating such rules, regulations, (3) CONFIDENTIALITY OF MEDICAL RECORDS.— which shall be headed by an Administrator. and procedures as may be necessary and ap- Any claimant may designate any record sub- (2) PURPOSE.—The purpose of the Office is propriate to implement the provisions of this mitted under this section as a confidential to provide timely, fair compensation, in the Act; personnel or medical file for purposes of sec- amounts and under the terms specified in (G) making such expenditures as may be tion 552 of title 5, United States Code. The this Act, on a no-fault basis and in a non-ad- necessary and appropriate in the administra- Administrator and the Chairman of the As- versarial manner, to individuals whose tion of this Act; bestos Insurers Commission shall adopt pro- health has been adversely affected by expo- (H) excluding evidence and disqualifying or cedures for designating such records as con- sure to asbestos. debarring any attorney, physician, provider fidential. (3) TERMINATION OF THE OFFICE.—The Office of medical or diagnostic services, including SEC. 102. ADVISORY COMMITTEE ON ASBESTOS of Asbestos Disease Compensation shall ter- laboratories and others who provide evidence DISEASE COMPENSATION. minate effective not later than 12 months in support of a claimant’s application for (a) ESTABLISHMENT.— following certification by the Administrator compensation where the Administrator de- (1) IN GENERAL.—Not later than 120 days that the Fund has neither paid a claim in the termines that materially false, fraudulent, after the date of enactment of this Act, the previous 12 months nor has debt obligations or fictitious statements or practices have Administrator shall establish an Advisory remaining to pay. been submitted or engaged in by such indi- Committee on Asbestos Disease Compensa- (4) EXPENSES.—There shall be available viduals or entities; and tion (hereinafter the ‘‘Advisory Com- from the Fund to the Administrator such (I) having all other powers incidental, nec- mittee’’). sums as are necessary for any and all ex- essary, or appropriate to carrying out the (2) COMPOSITION AND APPOINTMENT.—The penses associated with the Office of Asbestos functions of the Office. Advisory Committee shall be composed of 20 Disease Compensation and necessary to (2) CERTAIN ENFORCEMENTS.—For each in- members, appointed by the President. carry out the purposes of this Act. Expenses fraction relating to paragraph (1)(H), the Ad- (3) QUALIFICATIONS.—All of the members covered should include— ministrator also may impose a civil penalty described in paragraph (2) shall have exper- (A) management of the Fund; not to exceed $10,000 on any person or entity tise or experience relevant to the asbestos (B) personnel salaries and expenses, includ- found to have submitted or engaged in a ma- compensation program, including experience ing retirement and similar benefits; terially false, fraudulent, or fictitious state- or expertise in diagnosing asbestos-related

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diseases and conditions, assessing asbestos individuals who, for each of the 5 years be- (iii) REQUIREMENTS FOR COMPENSATION.—A exposure and health risks, filing asbestos fore their appointments, earned more than 15 representative of an individual shall not be claims, administering a compensation or in- percent of their income by serving in mat- eligible to receive a fee under clause (i), un- surance program, or as actuaries, auditors, ters related to asbestos litigation as consult- less— or investment managers. None of the mem- ants or expert witnesses. (I) such representative submits to the Ad- bers described in paragraph (2)(B) shall be in- SEC. 104. CLAIMANT ASSISTANCE. ministrator detailed contemporaneous bill- dividuals who, for each of the 5 years before (a) ESTABLISHMENT.—Not later than 120 ing records for any work actually performed their appointments, earned more than 15 per- days after the enactment of this Act, the Ad- in the course of representation of an indi- cent of their income by serving in matters ministrator shall establish a comprehensive vidual; and related to asbestos litigation as consultants asbestos claimant assistance program to— (II) the Administrator finds, based on bill- or expert witnesses. (1) publicize and provide information to po- ing records submitted by the representative (b) DUTIES.—The Advisory Committee shall tential claimants about the availability of under subclause (I), that the work for which advise the Administrator on— benefits for eligible claimants under this compensation is sought was reasonably per- (1) claims filing and claims processing pro- Act, and the procedures for filing claims and formed, and that the requested hourly fee is cedures; for obtaining assistance in filing claims; reasonable. (2) claimant assistance programs; (2) provide assistance to potential claim- (2) PENALTY.—Any representative of an as- (3) audit procedures and programs to en- ants in preparing and submitting claims, in- bestos claimant who violates this subsection sure the quality and integrity of the com- cluding assistance in obtaining the docu- shall be fined not more than the greater of— pensation program; mentation necessary to support a claim and (A) $5,000; or (4) the development of a list of industries, any other appropriate paralegal assistance; (B) twice the amount received by the rep- occupations and time periods for which there (3) respond to inquiries from claimants and resentative for services rendered in connec- is a presumption of substantial occupational potential claimants; tion with each such violation. exposure to asbestos; (4) provide training with respect to the ap- SEC. 105. PHYSICIANS PANELS. (5) recommended analyses or research that plicable procedures for the preparation and should be conducted to evaluate past claims filing of claims to persons who provide as- (a) APPOINTMENT.—The Administrator and to project future claims under the pro- sistance or representation to claimants; and shall, in accordance with section 3109 of title gram; (5) provide for the establishment of a 5, United States Code, appoint physicians (6) the annual report required to be sub- website where claimants may access all rel- with experience and competency in diag- mitted to Congress under section 405; and evant forms and information. nosing asbestos-related diseases to be avail- (7) such other matters related to the imple- (b) RESOURCE CENTERS.—The claimant as- able to serve on Physicians Panels, as nec- mentation of this Act as the Administrator sistance program shall provide for the estab- essary to carry out this Act. considers appropriate. lishment of resource centers in areas where (b) FORMATION OF PANELS.— (c) OPERATION OF THE COMMITTEE.— there are determined to be large concentra- (1) IN GENERAL.—The Administrator shall (1) Each member of the Advisory Com- tions of potential claimants. These centers periodically determine— mittee shall be appointed for a term of 10 shall be located, to the extent feasible, in fa- (A) the number of Physicians Panels nec- years. cilities of the Department of Labor or other essary for the efficient conduct of the med- (2) Any member appointed to fill a vacancy Federal agencies. ical review process under section 121; occurring before the expiration of the term (c) CONTRACTS.—The claimant assistance (B) the number of Physicians Panels nec- shall be appointed only for the remainder of program may be carried out in part through essary for the efficient conduct of the excep- such term. contracts with labor organizations, commu- tional medical claims process under section (3) The Administrator shall designate a nity-based organizations, and other entities 121; and Chairperson and Vice Chairperson from which represent or provide services to poten- (C) the particular expertise necessary for among members of the Advisory Committee tial claimants, except that such organiza- each panel. appointed under subsection (a)(2)(B). tions may not have a financial interest in (2) EXPERTISE.—Each Physicians Panel (4) The Advisory Committee shall meet at the outcome of claims filed with the Office. shall be composed of members having the the call of the Chairperson or the majority of (d) LEGAL ASSISTANCE.— particular expertise determined necessary by its members, and at a minimum shall meet (1) IN GENERAL.—As part of the program es- the Administrator, randomly selected from at least 4 times per year during the first 5 tablished under subsection (a), the Adminis- among the physicians appointed under sub- years of the asbestos compensation program, trator shall establish a legal assistance pro- section (a) having such expertise. and at least 2 times per year thereafter. gram to provide assistance to asbestos (3) PANEL MEMBERS.—Except as provided (5) The Administrator shall provide to the claimants concerning legal representation under subparagraph (B), each Physicians Committee such information as is necessary issues. Panel shall consist of 3 physicians, 2 of and appropriate for the Committee to carry (2) LIST OF QUALIFIED ATTORNEYS.—As part whom shall be designated to participate in out its responsibilities under this section. of the program, the Administrator shall each case submitted to the Physicians Panel, The Administrator may, upon request of the maintain a roster of qualified attorneys who and the third of whom shall be consulted in Advisory Committee, secure directly from have agreed to provide pro bono services to the event of disagreement. any Federal, State, or local department or asbestos claimants under rules established agency such information as may be nec- (c) QUALIFICATIONS.—To be eligible to serve by the Administrator. The claimants shall on a Physicians Panel under subsection (a), a essary and appropriate to enable the Advi- not be required to use the attorneys listed on sory Committee to carry out its duties under person shall be— such roster. (1) a physician licensed in any State; this section. Upon request of the Adminis- (3) NOTICE.— trator, the head of such department or agen- (2) board-certified in pulmonary medicine, (A) NOTICE BY ADMINISTRATOR.—The Ad- occupational medicine, internal medicine, cy shall furnish such information to the Ad- ministrator shall provide asbestos claimants visory Committee. oncology, or pathology; and with notice of, and information relating to— (3) an individual who, for each of the 5 (6) The Administrator shall provide the Ad- (i) pro bono services for legal assistance visory Committee with such administrative years before and during his or her appoint- available to those claimants; and ment to a Physicians Panel, has earned not support as is reasonably necessary to enable (ii) any limitations on attorneys fees for it to perform its functions. more than 15 percent of his or her income as claims filed under this title. an employee of a participating defendant or (d) EXPENSES.—Members of the Advisory (B) NOTICE BY ATTORNEYS.—Before a person Committee, other than full-time employees insurer or a law firm representing any party becomes a client of an attorney with respect in asbestos litigation or as a consultant or of the United States, while attending meet- to an asbestos claim, that attorney shall ings of the Advisory Committee or while oth- expert witness in matters related to asbestos provide notice to that person of pro bono litigation. erwise serving at the request of the Adminis- services for legal assistance available for trator, and while serving away from their that claim. (d) DUTIES.—Members of a Physicians homes or regular places of business, shall be (e) ATTORNEY’S FEES.— Panel shall— allowed travel and meal expenses, including (1) LIMITATION.— (1) make such medical determinations as per diem in lieu of subsistence, as authorized (A) IN GENERAL.—Notwithstanding any are required to be made by Physicians Pan- by section 5703 of title 5, United States Code, contract, the representative of an individual els under section 121; and for individuals in the Government serving may not receive, for services rendered in (2) perform such other functions as re- without pay. connection with the claim of an individual quired under this Act. SEC. 103. MEDICAL ADVISORY COMMITTEE. under the Fund, more than a reasonable at- (e) COMPENSATION.—Notwithstanding any (a) IN GENERAL.—The Administrator shall torney’s fee. limitation otherwise established under sec- establish a Medical Advisory Committee to (ii) CALCULATION OF REASONABLE FEE.—Any tion 3109 of title 5, United States Code, the provide expert advice regarding medical fee obtained under clause (i) shall be cal- Administrator shall be authorized to pay issues arising under the statute. culated by multiplying a reasonable hourly members of a Physician Panel such com- (b) QUALIFICATIONS.—None of the members rate by the number of hours reasonably ex- pensation as is reasonably necessary to ob- of the Medical Advisory Committee shall be pended on the claim of the individual. tain their services.

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(f) FEDERAL ADVISORY COMMITTEE ACT.—A (3) ADDITIONAL TERMINAL HEALTH CLAIMS.— shall not be eligible to seek a settlement or Physicians Panel established under this sec- The Administrator may, in final regulations settlement offer under this paragraph. tion shall not be subject to the Federal Advi- promulgated under section 101(c), designate (iii) TERMINAL HEALTH CLAIM INFORMA- sory Committee Act (5 U.S.C. App. 2). additional categories of claims that qualify TION.—To file a terminal health claim, each SEC. 106. PROGRAM STARTUP. as terminal health claims under this sub- individual shall provide all of the following (a) IMMEDIATE STARTUP.— section except that exceptional medical information: (1) IN GENERAL.—Subject to section 101(d), claims may not proceed. (I) The amount received or entitled to be the Administrator may— (4) CLAIMS FACILITY.—To facilitate the received as a result of all collateral source (A) start receiving, reviewing, and deciding prompt payment of terminal health claims compensation under section 134, and copies claims immediately upon the date of enact- prior to the Fund being certified as oper- of all settlement agreements and related ment of this Act; and ational, the Administrator shall contract documents sufficient to show the accuracy of (B) reimburse the Department of Labor with a claims facility, which applying the that amount. from the Fund for any expense incurred— medical criteria of section 121, shall process (II) A description of any claims for com- (i) before that date of enactment in prepa- and pay claims in accordnace with section pensation for an asbestos related injury or ration for carrying out any of the respon- 106(f)(2). The processing and payment of disease filed by the claimant with any trust sibilities of the Administrator under this claims shall be subject to regulations pro- or class action trust, and the status or dis- Act; and mulgated under this Act. position or any such claims. (ii) during the 60-day period following that (5) AUTHORIZATION FOR CONTRACTS WITH (III) All information that the claimant date of enactment to carry out such respon- CLAIMS FACILITIES.—The Administrator may would be required to provide to the Adminis- sibilities. enter into contracts with a claims facility trator in support of a claim under sections (2) INTERIM REGULATIONS.—Not later than for the processing of claims (except for ex- 113(c) and 121. 90 days after the date of enactment of this ceptional medical claims) in accordance with (IV) A certification by the claimant that Act, the Administrator shall promulgate in- this title. the information provided is true and com- terim regulations and procedures for the (d) PRIORITIZATION OF CLAIMS.—The Admin- plete. The certification provided under this processing of claims under this title and the istrator shall, in final regulations promul- subclause shall be subject to the same pen- operation of the Fund under title II, includ- gated under section 101(c), designate cat- alties for false or misleading statements that ing procedures for the expediting of terminal egories of claims to be handled on an expe- would be applicable with regard to informa- health claims, and processing of claims dited basis. The Administrator shall tion provided to the Administrator or claims through the claims facility. prioritize the processing and payment of facility in support of a claim. (b) INTERIM PERSONNEL AND CONTRACTING.— health claims involving claimants with the (V) For terminal health claims arising The Secretary of Labor and the Assistant most serious health claims. The Adminis- after the date of enactment of this Act, the Secretary of Labor for the Employment trator shall also prioritize claims from claimant shall identify each defendant that Standards Administration shall make avail- claimants who face extreme financial hard- would be an appropriate defendant in a civil able to the Administrator on a temporary ship. action seeking damages for the asbestos basis such personnel and other resources as (e) INTERIM ADMINISTRATOR.—Until an Ad- claim of the claimant. Identification of all may be necessary to facilitate the expedi- ministrator is appointed and confirmed potential participants shall be made in good tious startup of the program. The Adminis- under section 101(b), the responsibilities of faith by the claimant. trator may in addition contract with individ- the Administrator under this Act shall be (iv) TIMING.—A claimant who has filed a uals or entities having relevant experience performed by the Assistant Secretary of notice of their intent to seek a settlement to assist in the expeditious startup of the Labor for the Employment Standards Ad- under clause (ii) shall within 60 days after program including entering into contracts ministration, who shall have all the author- filing notice provide to the Administrator or on an expedited or sole source basis during ity conferred by this Act on the Adminis- claims facility the information required the startup period for the purpose of proc- trator and who shall be deemed to be the Ad- under clause (iii). If a claimant has filed an essing claims or providing financial analysis ministrator for purposes of this Act. Before exigent health claim under clause (ii) the or assistance. Such relevant experience shall final regulations being promulgated relating Administrator shall provide all affected de- include, but not be limited to, experience to claims processing, the Interim Adminis- fendants the information required under with the review of workers’ compensation, trator may prioritize claims processing, clause (iii). occupational disease, or similar claims and without regard to the time requirements pre- (v) WEBSITE.— with financial matters relevant to the oper- scribed in subtitle B of this title, based on (I) POSTING.—The Administrator or claims ation of the program. severity of illness and likelihood that expo- facility shall post the information described (c) TERMINAL HEALTH CLAIMS.— sure to asbestos was a substantial contrib- in subclause (II) to a secure website, acces- (1) IN GENERAL.—The Administrator shall uting factor for the illness in question. sible on a passcode-protected basis to par- develop procedures, as provided in section (f) STAY OF CLAIMS.— ticipants. 106(f), to provide for an expedited process to (1) STAY OF CLAIMS.—Notwithstanding any (II) REQUIRED INFORMATION.—The website categorize, evaluate, and pay terminal other provision of this Act, any asbestos established under subclause (I) shall contain health claims. Such procedures, as provided claim pending on the date of enactment of a listing of— in section 106(f), shall include, pending pro- this Act is stayed. (aa) each claimant that has filed a notice mulgation of final regulations, adoption of (2) TERMINAL HEALTH CLAIMS.— of intent to seek a settlement or claim under interim regulations as needed for processing (A) PROCEDURES FOR SETTLEMENT OF TER- this clause; of terminal health claims. MINAL HEALTH CLAIMS.— (bb) the name of such claimant; and (2) ELIGIBLE TERMINAL HEALTH CLAIMS.—A (i) IN GENERAL.—Any person that has filed (cc) if applicable— claim shall qualify for treatment as a ter- a terminal health claim, as provided under (AA) the name of the court where such minal health claim if— subsection (c)(2), seeking a judgment or claim was filed; (A) the claimant is living and provides a order for monetary damages in any Federal (BB) the case or docket number of such diagnosis of mesothelioma meeting the re- or State court before the date of the enact- claim; and quirements of section 121(d)(9); ment of this Act, shall seek a settlement in (CC) the date such claim was filed. (B) the claimant is living and provides a accordance with this paragraph. Any person (III) PROHIBITIONS.—The website estab- credible declaration or affidavit, from a diag- with a terminal health claim, as provided lished under subclause (I) shall not contain nosing physician who has examined the under subsection (c)(2), that arises after such specific health or medical information or so- claimant within 120 days before the date of date of enactment shall seek a settlement in cial security numbers. such declaration or affidavit, that the physi- accordance with this paragraph. (IV) PARTICIPANT ACCESS.—A participant’s cian has diagnosed the claimant as being ter- (ii) FILING.— access to the website established under sub- minally ill from an asbestos-related illness (I) IN GENERAL.—At any time before the clause (I) shall be limited on a need to know and having a life expectancy of less than 1 Fund or claims facility is certified as oper- basis, and participants shall not disclose or year due to such asbestos-related illness; or ational and paying terminal health claims at sell data, or retain data for purposes other (C) the claimant is the spouse or child of a reasonable rate, any person with a ter- than paying an asbestos claim. an eligible terminal health claimant who— minal health claim as described under clause (V) VIOLATIONS.—Any person or other enti- (i) was living when the claim was filed with (i) shall file a notice of their intent to seek ty that violates any provision of this clause, the Fund, or if before the implementation of a settlement or shall file their exigent including by breaching any data posted on interim regulations for the filing of claims health claim with the Administrator or the website, shall be subject to an injunc- with the Fund, on the date of enactment of claims facility. Filing of an exigent health tion, or civil penalties, or both. this Act; claim with the Administrator or claims fa- (vi) ADMINISTRATOR OR CLAIMS FACILITY (ii) has since died from a malignant disease cility may serve as notice of intent to seek CERTIFICATION OF SETTLEMENT.— or condition; and a settlement. (I) DETERMINATION.—Within 60 days after (iii) has not received compensation from (II) EXCEPTION.—Any person who seeks the information under clause (iii) is pro- the Fund for the disease or condition for compensation for an exigent health claim vided, the Administrator or claims facility which the claim was filed. from a trust in accordance with section 402(f) shall determine whether or not the claim

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If the amount of the settlement the jurisdiction of the Administrator under trator or claims facility determines that the offer made by the Administrator, claims fa- this Act, may— claim meets the requirements of a terminal cility, or participants equals 100 percent of (1) issue subpoenas for and compel the at- health claim, the Administrator or claims what the claimant would receive under the tendance of witnesses within a radius of 200 facility shall immediately— Fund, the claimant shall accept such settle- miles; (aa) issue and serve on all parties a certifi- ment in writing. (2) administer oaths; cation of eligibility of such claim; (xi) OPPORTUNITY TO CURE.—If the settle- (3) examine witnesses; (bb) determine the value of such claim ment offer is rejected for being less than (4) require the production of books, papers, under the Fund by subtracting from the what the claimant would receive under the documents, and other evidence; and amount in section 131 the total amount of Fund, the participants shall have 10 business (5) request assistance from other Federal collateral source compensation received by days to make an amended offer. If the agencies with the performance of the duties the claimant; and amended offer equals 100 percent of what the of the Administrator under this Act. (cc) pay the award of compensation to the claimant would receive under the Fund, the claimant under clause (xiii). Subtitle B—Asbestos Disease Compensation claimant shall accept such settlement offer (III) REQUIREMENTS NOT MET.—If the re- Procedures quirements under clause (iii) are not met, in writing. (xii) PAYMENT SCHEDULE.— SEC. 111. ESSENTIAL ELEMENTS OF ELIGIBLE the claimant shall have 30 days to perfect CLAIM. (I) MESOTHELIOMA CLAIMANTS.—For meso- the claim. If the claimant fails to perfect the To be eligible for an award under this Act claim within that 30-day period or the Ad- thelioma claimants— for an asbestos-related disease or injury, an ministrator or claims facility determines (aa) an initial payment of 50 percent shall individual shall— that the claim does not meet the require- be made within 30 days after the date the (1) file a claim in a timely manner in ac- ments of a terminal health claim, the claim settlement is accepted and the second and cordance with sections 106(f)(2) and 113; and shall not be eligible to proceed under this final payment shall be made 6 months after (2) prove, by a preponderance of the evi- paragraph. A claimant may appeal any deci- date the settlement is accepted; or dence, that the claimant suffers from an eli- sion issued by a claims facility with the Ad- (bb) if the Administrator determines that gible disease or condition, as demonstrated ministrator in accordance with section 114. the payment schedule would impose a severe by evidence that meets the requirements es- (vii) FAILURE TO CERTIFY.—If the Adminis- financial hardship on the Fund, or if the trator or claims facility is unable to process court determines that the settlement offer tablished under subtitle C. the claim and does not make a determina- would impose a severe financial hardship on SEC. 112. GENERAL RULE CONCERNING NO- tion regarding the certification of the claim the participant, the payments may be ex- FAULT COMPENSATION. as required under clause (vi), the Adminis- tended 50 percent in 6 months and 50 percent An asbestos claimant shall not be required trator or claims facility shall within 10 days 11 months after the date the settlement offer to demonstrate that the asbestos-related in- after the end of the 60-day period referred to is accepted. jury for which the claim is being made re- under clause (vi)(I) provide notice of the fail- (II) OTHER TERMINAL CLAIMANTS.—For sulted from the negligence or other fault of ure to act to the claimant and the defend- other terminal claimants, as defined under any other person. ants in the pending Federal or State court section 106(c)(2)(B) and (C)— SEC. 113. FILING OF CLAIMS. action or the defendants identified under (aa) the initial payment of 50 percent shall clause (iii)(IV). If the Administrator or be made within 6 months after the date the (a) WHO MAY SUBMIT.— claims facility fails to provide such notice settlement is accepted and the second and (1) IN GENERAL.—Any individual who has within 10 days, the claimant may elect to final payment shall be made 12 months after suffered from a disease or condition that is believed to meet the requirements estab- provide the notice to the affected defendants date the settlement is accepted; or lished under subtitle C (or the personal rep- to prompt a settlement offer. The Adminis- (bb) if the Administrator determines that resentative of the individual, if the indi- trator or claims facility shall list all ter- the payment schedule would impose a severe vidual is deceased or incompetent) may file a minal health claims for which notice has financial hardship on the Fund, or if the claim with the Office for an award with re- been provided under this clause on the court determines that the settlement offer spect to such injury. website established under clause (v). would impose a severe financial hardship on (2) DEFINITION.—In this Act, the term ‘‘per- (viii) FAILURE TO PAY.—If the Adminis- the participants, the payments may be ex- sonal representative’’ shall have the same trator or claims facility does not pay the tended 50 percent within 1 year after the meaning as that term is defined in section award as required under clause (xiii), the Ad- date the settlement offer is accepted and 50 ministrator shall refer the certified claim 104.4 of title 28 of the Code of Federal Regu- percent in 2 years after date the settlement within 10 days as a certified terminal health lations, as in effect on December 31, 2004. offer is accepted. claim to the defendants in the pending Fed- (3) LIMITATION.—A claim may not be filed (III) RELEASE.—Once a claimant has re- eral and State court action or to the poten- by any person seeking contribution or in- ceived final payment of the accepted settle- tial defendants identified under clause demnity. ment offer, and penalty payment if applica- (iii)(IV) for terminal claims arising after the (4) EFFECT OF MULTIPLE INJURIES.— ble, the claimant shall release any out- date of enactment of this Act. The Adminis- (A) IN GENERAL.—A claimant who receives trator or claims facility shall list all ter- standing asbestos claims. an award for an eligible disease or condition minal health claims for which notice has (xiii) RECOVERY OF COSTS.— shall not be precluded from submitting been provided under this clause on the (I) IN GENERAL.—Any participant whose claims for and receiving additional awards website established under clause (v). settlement offer is accepted may recover the under this title for any higher disease level (ix) SETTLEMENT OFFER.—Any participant cost of such settlement by deducting from for which the claimant becomes eligible, sub- or participants may, within 30 days after re- the participant’s next and subsequent con- ject to appropriate setoffs as provided under ceipt of such notice as provided under clause tributions to the Fund the full amount of the section 134. (vii) or (viii), file and serve on all parties and payment made by such participant to the (B) LIBBY, MONTANA CLAIMS.— the Administrator a good faith settlement terminal health claimant, unless the Admin- (i) IN GENERAL.—Notwithstanding subpara- offer in an aggregate amount not to exceed istrator finds, on the basis of clear and con- graph (A), if a Libby, Montana claimant the total amount to which the claimant vincing evidence, that the participant’s offer worsens in condition, as measured by pul- would receive under section 131. If the aggre- is not in good faith. Any such payment shall monary function tests, such that a claimant gate amount offered by all participants ex- be considered a payment to the Fund for pur- qualifies for a higher nonmalignant level, ceeds the award determined by the Adminis- poses of section 404(e)(1) and in response to the claimant shall be eligible for an addi- trator, all offers shall be deemed reduced the payment obligations imposed on partici- tional award, at the appropriate level, offset pro-rata until the aggregate amount equals pants in title II. by any award previously paid under this Act, the award amount. An acceptance of such (II) REIMBURSEMENT.—Notwithstanding such that a claimant would qualify for Level settlement offer for claims pending before subclause (I), if the deductions from the par- IV if the claimant satisfies section 121(f)(8), the date of enactment of this Act shall be ticipant’s next and subsequent contributions and would qualify for Level V if the claimant subject to approval by the trial judge or au- to the Fund do not fully recover the cost of provides— thorized magistrate in the court where the such payments on or before its third annual (I) a diagnosis of bilateral asbestos related claim is pending. The court shall approve contribution to the Fund, the Fund shall re- nonmalignant disease; any such accepted offer within 20 days after imburse such participant for such remaining (II) evidence of TLC or FVC less than 60 a request, unless there is evidence of bad cost not later than 6 months after the date of percent; and faith or fraud. No court approval is nec- the third scheduled Fund contribution. (III) supporting medical documentation es- essary if the terminal health claim was cer- (3) RESERVATION OF RIGHTS.—Participation tablishing asbestos exposure as a substantial tified by the Administrator or claims facil- in the offer and settlement process under contributing factor in causing the pul- ity under clause (vi). this subsection shall not affect or prejudice monary condition in question, and excluding (x) ACCEPTANCE OR REJECTION.—Within 20 any rights or defenses a party might have in more likely causes of that pulmonary condi- days after receipt of the settlement offer, or any litigation. tion.

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(ii) SUBSEQUENT MALIGNANT DISEASE.—If a by the claimant’s physician with medical di- the hearing, the claimant shall be entitled to Libby, Montana, claimant develops malig- agnoses and x-ray films, and other test re- present oral evidence and written testimony nant disease, such that the claimant quali- sults necessary to establish eligibility for an in further support of that claim. fies for Level VI, VII, VIII, or IX, subpara- award under this Act; (B) CONDUCT OF HEARING.—When prac- graph (A) shall apply. (7) a description of any prior or pending ticable, the hearing will be set at a time and (b) STATUTE OF LIMITATIONS.— civil action or other claim brought by the place convenient for the claimant. In con- (1) IN GENERAL.—If a claim is not filed with claimant for asbestos-related injury or any ducting the hearing, the representative of the Office within the limitations period spec- other pulmonary, parenchymal, or pleural the Administrator shall not be bound by ified in this subsection for that category of injury, including an identification of any re- common law or statutory rules of evidence, claim, such claim shall be extinguished, and covery of compensation or damages through by technical or formal rules of procedure, or any recovery thereon shall be prohibited. settlement, judgment, or otherwise; and by section 554 of title 5, United States Code, (2) INITIAL CLAIMS.—An initial claim for an (8) for any claimant who asserts that he or except as provided by this Act, but shall con- award under this Act shall be filed within 2 she is a nonsmoker or an ex-smoker, as de- duct the hearing in such manner as to best years after the date on which the claimant fined in section 131, for purposes of an award ascertain the rights of the claimant. For this first received a medical diagnosis and med- under Malignant Level VI, Malignant Level purpose, the representative shall receive ical test results sufficient to satisfy the cri- VII, or Malignant Level VIII, evidence to such relevant evidence as the claimant ad- teria for the disease level for which the support the assertion of nonsmoking or ex- duces and such other evidence as the rep- claimant is seeking compensation. smoking, including relevant medical records. resentative determines necessary or useful in (3) CLAIMS FOR ADDITIONAL AWARDS.— (d) DATE OF FILING.—A claim shall be con- evaluating the claim. (A) NON-MALIGNANT DISEASES.—If a claim- sidered to be filed on the date that the (C) REQUEST FOR SUBPOENAS.— ant has previously filed a timely initial claimant mails the claim to the Office, as de- (i) IN GENERAL.—A claimant may request a claim for compensation for any non-malig- termined by postmark, or on the date that subpoena but the decision to grant or deny nant disease level, there shall be no limita- the claim is received by the Office, which- such a request is within the discretion of the tions period applicable to the filing of claims ever is the earliest determinable date. representative of the Administrator. The by the claimant for additional awards for (e) INCOMPLETE CLAIMS.—If a claim filed representative may issue subpoenas for the higher disease levels based on the progres- under subsection (a) is incomplete, the Ad- attendance and testimony of witnesses, and sion of the non-malignant disease. ministrator shall notify the claimant of the for the production of books, records, cor- (B) MALIGNANT DISEASES.—Regardless of information necessary to complete the claim respondence, papers, or other relevant docu- whether the claimant has previously filed a and inform the claimant of such services as ments. Subpoenas are issued for documents claim for compensation for any other disease may be available through the Claimant As- only if such documents are relevant and can- level, a claim for compensation for a malig- sistance Program established under section not be obtained by other means, and for wit- nant disease level shall be filed within 2 104 to assist the claimant in completing the nesses only where oral testimony is the best years after the claimant first obtained a claim. Any time periods for the processing of way to ascertain the facts. medical diagnosis and medical test results the claim shall be suspended until such time (ii) REQUEST.—A claimant may request a sufficient to satisfy the criteria for the ma- as the claimant submits the information subpoena only as part of the hearing process. lignant disease level for which the claimant necessary to complete the claim. If such in- To request a subpoena, the requester shall— is seeking compensation. formation is not received within 1 year after (I) submit the request in writing and send (4) EFFECT ON PENDING CLAIMS.— the date of such notification, the claim shall it to the representative as early as possible, (A) IN GENERAL.—If, on the date of enact- be dismissed. but no later than 30 days after the date of ment of this Act, an asbestos claimant has SEC. 114. ELIGIBILITY DETERMINATIONS AND the original hearing request; and any timely filed asbestos claim that is pre- CLAIM AWARDS. (II) explain why the testimony or evidence empted under section 403(e), such claimant (a) IN GENERAL.— is directly relevant to the issues at hand, shall file a claim under this section within 2 (1) REVIEW OF CLAIMS.—The Administrator and a subpoena is the best method or oppor- years after such date of enactment, or any shall, in accordance with this section, deter- tunity to obtain such evidence because there claim relating to that injury, and any other mine whether each claim filed under the are no other means by which the documents asbestos claim related to that injury shall be Fund or claims facility satisfies the require- or testimony could have been obtained. extinguished, and recovery on any such ments for eligibility for an award under this (iii) FEES AND MILEAGE.—Any person re- claim shall be prohibited. Act and, if so, the value of the award. In quired by such subpoena to attend as a wit- (B) SPECIAL RULE.—For purposes of this making such determinations, the Adminis- ness shall be allowed and paid the same fees paragraph, a claim shall not be treated as trator shall consider the claim presented by and mileage as are paid witnesses in the dis- pending with a trust established under title the claimant, the factual and medical evi- trict courts of the United States. Such fees 11, United States Code, solely because a dence submitted by the claimant in support and mileage shall be paid from the Fund. claimant whose claim was previously com- of the claim, the medical determinations of (2) REVIEW OF WRITTEN RECORD.—In lieu of pensated by the trust has or alleges— any Physicians Panel to which a claim is re- a hearing under paragraph (1), any claimant (i) a non-contingent right to the payment ferred under section 121, and the results of not satisfied with a proposed decision of the of future installments of a fixed award; or such investigation as the Administrator may Administrator shall have the option, on (ii) a contingent right to recover some ad- deem necessary to determine whether the written request made within 90 days after ditional amount from the trust on the occur- claim satisfies the criteria for eligibility es- the date of the issuance of the decision, of rence of a future event, such as the reevalua- tablished by this Act. obtaining a review of the written record by a tion of the trust’s funding adequacy or pro- (2) ADDITIONAL EVIDENCE.—The Adminis- representative of the Administrator. If such jected claims experience. trator may request the submission of med- review is requested, the claimant shall be af- (c) REQUIRED INFORMATION.—A claim filed ical evidence in addition to the minimum re- forded an opportunity to submit any written under subsection (a) shall be in such form, quirements of section 113(c) if necessary or evidence or argument which the claimant be- and contain such information in such detail, appropriate to make a determination of eli- lieves relevant. as the Administrator shall by regulation pre- gibility for an award, in which case the cost scribe. At a minimum, a claim shall in- of obtaining such additional information or (e) FINAL DECISIONS.— clude— testing shall be borne by the Office. (1) IN GENERAL.—If the period of time for (1) the name, social security number, gen- (b) PROPOSED DECISIONS.—Not later than 90 requesting review of the proposed decision der, date of birth, and, if applicable, date of days after the filing of a claim, the Adminis- expires and no request has been filed, or if death of the claimant; trator shall provide to the claimant (and the the claimant waives any objections to the (2) information relating to the identity of claimant’s representative) a proposed deci- proposed decision, the Administrator shall dependents and beneficiaries of the claimant; sion accepting or rejecting the claim in issue a final decision. If such decision mate- (3) an employment history sufficient to es- whole or in part and specifying the amount rially differs from the proposed decision, the tablish required asbestos exposure, accom- of the proposed award, if any. The proposed claimant shall be entitled to review of the panied by social security or other payment decision shall be in writing, shall contain decision under subsection (d). records or a signed release permitting access findings of fact and conclusions of law, and (2) TIME AND CONTENT.—If the claimant re- to such records; shall contain an explanation of the proce- quests review of all or part of the proposed (4) a description of the asbestos exposure of dure for obtaining review of the proposed de- decision the Administrator shall issue a final the claimant, including, to the extent cision. decision on the claim not later than 180 days known, information on the site, or location (d) REVIEW OF PROPOSED DECISIONS.— after the request for review is received, if the of exposure, and duration and intensity of (1) RIGHT TO HEARING.— claimant requests a hearing, or not later exposure; (A) IN GENERAL.—Any claimant not satis- than 90 days after the request for review is (5) a description of the tobacco product use fied with a proposed decision of the Adminis- received, if the claimant requests review of history of the claimant, including frequency trator under subsection (b) shall be entitled, the written record. Such decision shall be in and duration; on written request made within 90 days after writing and contain findings of fact and con- (6) an identification and description of the the date of the issuance of the decision, to a clusions of law. asbestos-related diseases or conditions of the hearing on the claim of that claimant before (f) REPRESENTATION.—A claimant may au- claimant, accompanied by a written report a representative of the Administrator. At thorize an attorney or other individual to

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represent him or her in any proceeding under paragraph (1)(A) shall be at the discretion of (10) LOWER LIMITS OF NORMAL.—The term this Act. the Administrator, but shall address at least ‘‘lower limits of normal’’ means the fifth SEC. 115. AUDITING PROCEDURES. 5 percent of the claimants asserting status percentile of healthy populations as defined (a) IN GENERAL.— as nonsmokers or ex-smokers. in the American Thoracic Society statement (1) DEVELOPMENT.—The Administrator (3) CONSENT.— on lung function testing (Amer. Rev. Resp. shall develop methods for auditing and eval- (A) IN GENERAL.—The Administrator may Disease 1991, 144:1202–1218) and any future re- uating the medical and exposure evidence require the performance of blood tests or any vision of the same statement. other appropriate medical test, where claim- submitted as part of the claims process. The (11) NONSMOKER.—The term ‘‘nonsmoker’’ ants assert they are nonsmokers or ex-smok- Administrator may develop additional meth- means a claimant who— ods for auditing and evaluating other types ers for purposes of an award under Malignant Level VI, VII, or VIII, or as an exceptional (A) never smoked; or of evidence or information received by the (B) has smoked fewer than 100 cigarettes or Administrator. medical claim, the cost of which shall be paid by the Fund. the equivalent amount of other tobacco (2) REFUSAL TO CONSIDER CERTAIN EVI- (B) SERUM COTININE SCREENING.—The Ad- products during the claimant’s lifetime. DENCE.— ministrator shall require the performance of (12) PO2.—The term ‘‘PO2’’ means the par- (A) IN GENERAL.—If the Administrator de- tial pressure (tension) of oxygen, which termines that an audit conducted in accord- serum cotinine screening on all claimants who assert they are nonsmokers or ex-smok- measures the amount of dissolved oxygen in ance with the methods developed under para- ers for purposes of an award under Malignant the blood. graph (1) demonstrates that the medical evi- Level VI, VII, or VIII, or as an exceptional (13) PULMONARY FUNCTION TESTING.—The dence submitted by a specific physician, medical claim, the cost of which shall be medical facility or attorney or law firm is term ‘‘pulmonary function testing’’ means paid by the Fund. not consistent with prevailing medical prac- spirometry testing that is in material com- (4) PENALTY FOR FALSE STATEMENTS.—Any tices or the applicable requirements of this pliance with the quality criteria established false information submitted under this sub- Act, any medical evidence from such physi- by the American Thoracic Society and is section shall be subject to criminal prosecu- cian, facility or attorney or law firm shall be performed on equipment which is in material tion or civil penalties as provided under sec- unacceptable for purposes of establishing eli- compliance with the standards of the Amer- tion 1348 of title 18, United States Code (as gibility for an award under this Act. ican Thoracic Society for technical quality added by this Act) and section 101(c)(2). and calibration. (B) NOTIFICATION.—Upon a determination (d) PULMONARY FUNCTION TESTING.—The (14) SUBSTANTIAL OCCUPATIONAL EXPOSURE by the Administrator under subparagraph Administrator shall develop auditing proce- (A), the Administrator shall notify the phy- dures for pulmonary function test results TO ASBESTOS.— sician or medical facility involved of the re- submitted as part of a claim, to ensure that (A) IN GENERAL.—The term ‘‘substantial sults of the audit. Such physician or facility such tests are conducted in accordance with occupational exposure’’ means employment shall have a right to appeal such determina- American Thoracic Society Criteria, as de- in an industry and an occupation where for a tion under procedures issued by the Adminis- fined under section 121(a)(13). substantial portion of a normal work year trator. Subtitle C—Medical Criteria for that occupation, the claimant— (b) REVIEW OF CERTIFIED B-READERS.— SEC. 121. MEDICAL CRITERIA REQUIREMENTS. (i) handled raw asbestos fibers; (1) IN GENERAL.—The Administrator shall (a) DEFINITIONS.—In this section, the fol- (ii) fabricated asbestos-containing prod- prescribe procedures to randomly evaluate lowing definitions shall apply: ucts so that the claimant in the fabrication the x-rays submitted in support of a statis- (1) ASBESTOSIS DETERMINED BY PATHOL- process was exposed to raw asbestos fibers; tically significant number of claims by inde- OGY.—The term ‘‘asbestosis determined by (iii) altered, repaired, or otherwise worked pendent certified B-readers, the cost of pathology’’ means indications of asbestosis with an asbestos-containing product such which shall be paid by the Fund. based on the pathological grading system for that the claimant was exposed on a regular (2) DISAGREEMENT.—If an independent cer- asbestosis described in the Special Issues of basis to a significant amount of asbestos fi- tified B-reader assigned under paragraph (1) the Archives of Pathology and Laboratory bers; or disagrees with the quality grading or ILO Medicine, ‘‘Asbestos-associated Diseases’’, (iv) worked in close proximity to other level assigned to an x-ray submitted in sup- Vol. 106, No. 11, App. 3 (October 8, 1982). workers engaged in the activities described port of a claim, the Administrator shall re- (2) BILATERAL ASBESTOS-RELATED NON- under clause (i), (ii), or (iii), such that the quire a review of such x-rays by a second MALIGNANT DISEASE.—The term ‘‘bilateral as- independent certified B-reader. claimant was exposed on a regular basis to a bestos-related nonmalignant disease’’ means significant amount of asbestos fibers. (3) EFFECT ON CLAIM.—If neither certified a diagnosis of bilateral asbestos-related non- (B) REGULAR BASIS.—In this paragraph, the B-reader under paragraph (2) agrees with the malignant disease based on— quality grading and the ILO grade level as- term ‘‘on a regular basis’’ means on a fre- (A) an x-ray reading of 1/0 or higher based quent or recurring basis. signed to an x-ray as part of the claim, the on the ILO grade scale; (15) TLC.—The term ‘‘TLC’’ means total Administrator shall take into account the (B) bilateral pleural plaques; lung capacity, which is the total volume of findings of the 2 independent B readers in (C) bilateral pleural thickening; or making the determination on such claim. (D) bilateral pleural calcification. air in the lung after maximal inspiration. EIGHTED OCCUPATIONAL EXPOSURE (4) CERTIFIED B-READERS.—The Adminis- (3) BILATERAL PLEURAL DISEASE OF B2.—The (16) W .— trator shall maintain a list of a minimum of term ‘‘bilateral pleural disease of B2’’ means (A) IN GENERAL.—The term ‘‘weighted oc- 50 certified B-readers eligible to participate a chest wall pleural thickening or plaque cupational exposure’’ means exposure for a in the independent reviews, chosen from all with a maximum width of at least 5 millime- period of years calculated according to the certified B-readers. When an x-ray is sent for ters and a total length of at least 1⁄4 of the exposure weighting formula under subpara- independent review, the Administrator shall projection of the lateral chest wall. graphs (B) through (E). choose the certified B-reader at random from (4) CERTIFIED B-READER.—The term ‘‘cer- (B) MODERATE EXPOSURE.—Subject to sub- that list. tified B-reader’’ means an individual who is paragraph (E), each year that a claimant’s (c) SMOKING ASSESSMENT.— certified by the National Institute of Occu- primary occupation, during a substantial (1) IN GENERAL.— pational Safety and Health and whose cer- portion of a normal work year for that occu- (A) RECORDS AND DOCUMENTS.—To aid in tification by the National Institute of Occu- pation, involved working in areas immediate the assessment of the accuracy of claimant pational Safety and Health is up to date. to where asbestos-containing products were representations as to their smoking status (5) DIFFUSE PLEURAL THICKENING.—The being installed, repaired, or removed under for purposes of determining eligibility and term ‘‘diffuse pleural thickening’’ means circumstances that involved regular air- amount of award under Malignant Level VI, blunting of either costophrenic angle and bi- borne emissions of asbestos fibers, shall Malignant Level VII, or Malignant Level lateral pleural plaque or bilateral pleural count as 1 year of substantial occupational VIII, and exceptional medical claims, the thickening. exposure. Administrator shall have the authority to (7) FEV1.—The term ‘‘FEV1’’ means forced (C) HEAVY EXPOSURE.—Subject to subpara- obtain relevant records and documents, in- expiratory volume (1 second), which is the graph (E), each year that a claimant’s pri- cluding— maximal volume of air expelled in 1 second (i) records of past medical treatment and during performance of the spirometric test mary occupation, during a substantial por- evaluation; for forced vital capacity. tion of a normal work year for that occupa- (ii) affidavits of appropriate individuals; (8) FVC.—The term ‘‘FVC’’ means forced tion, involved the direct installation, repair, (iii) applications for insurance and sup- vital capacity, which is the maximal volume or removal of asbestos-containing products porting materials; and of air expired with a maximally forced effort such that the person was exposed on a reg- (iv) employer records of medical examina- from a position of maximal inspiration. ular basis to a significant amount of asbes- tions. (9) ILO GRADE.—The term ‘‘ILO grade’’ tos fibers, shall count as 2 years of substan- (B) CONSENT.—The claimant shall provide means the radiological ratings for the pres- tial occupational exposure. consent for the Administrator to obtain such ence of lung changes as determined from a (D) VERY HEAVY EXPOSURE.—Subject to records and documents where required. chest x-ray, all as established from time to subparagraph (E), each year that a claim- (2) REVIEW.—The frequency of review of time by the International Labor Organiza- ant’s primary occupation, during a substan- records and documents submitted under tion. tial portion of a normal work year for that

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(E) DATES OF EXPOSURE.—Each year of ex- (C) laboratory tests; (d) ASBESTOS DISEASE LEVELS.— posure calculated under subparagraphs (B), (D) tissue samples; (1) NONMALIGNANT LEVEL I.—To receive (C), and (D) that occurred before 1976 shall be (E) results of medical examinations; Level I compensation, a claimant shall pro- counted at its full value. Each year from 1976 (F) reviews of other medical evidence; and vide— to 1986 shall be counted as 1⁄2 of its value. (G) medical evidence that complies with (A) a diagnosis of bilateral asbestos-related Each year after 1986 shall be counted as 1⁄10 of recognized medical standards regarding nonmalignant disease; and its value. equipment, testing methods, and procedure (B) evidence of 5 years cumulative occupa- (F) OTHER CLAIMS.—Individuals who do not to ensure the reliability of such evidence as tional exposure to asbestos. meet the provisions of subparagraphs (A) may be submitted. through (E) and believe their post-1976 or (2) NONMALIGNANT LEVEL II.—To receive (c) EXPOSURE EVIDENCE.— post-1986 exposures exceeded the Occupa- Level II compensation, a claimant shall pro- (1) IN GENERAL.—To qualify for any disease tional Safety and Health Administration vide— level, the claimant shall demonstrate— standard may submit evidence, documenta- (A) a diagnosis of bilateral asbestos-related (A) a minimum exposure to asbestos or as- tion, work history, or other information to nonmalignant disease with ILO grade of 1/1 bestos-containing products; substantiate noncompliance with the Occu- or greater, and showing small irregular opac- (B) the exposure occurred in the United pational Safety and Health Administration ities of shape or size, either ss, st, or tt, and States, its territories or possessions, or standard (such as lack of engineering or present in both lower lung zones, or asbes- while a United States citizen, while an em- work practice controls, or protective equip- tosis determined by pathology, or blunting ployee of an entity organized under any Fed- ment) such that exposures would be equiva- of either costophrenic angle and bilateral eral or State law regardless of location, or lent to exposures before 1976 or 1986, or to pleural plaque; while a United States citizen while serving documented exposures in similar jobs or oc- (B) evidence of TLC less than 80 percent or on any United States flagged or owned ship, cupations where control measures had not FVC less than the lower limits of normal, provided the exposure results from such em- been implemented. Claims under this sub- and FEV1/FVC ratio less than 65 percent; ployment or service; and paragraph shall be evaluated on an indi- (C) evidence of 5 or more weighted years of (C) any additional asbestos exposure re- vidual basis by a Physicians Panel. substantial occupational exposure to asbes- quirement under this section. (b) MEDICAL EVIDENCE.— tos; and (2) PROOF OF EXPOSURE.— (1) LATENCY.—Unless otherwise specified, (D) supporting medical documentation, (A) AFFIDAVITS.—Exposure to asbestos suf- all diagnoses of an asbestos-related disease such as a written opinion by the examining ficient to satisfy the exposure requirements for a level under this section shall be accom- or diagnosing physician, according to the di- for any disease level may be established by a panied by— agnostic guidelines in section 121(b)(2), es- (A) a statement by the physician providing detailed and specific affidavit that— (i) is filed by— tablishing asbestos exposure as the cause of the diagnosis that at least 10 years have the pulmonary condition in question. elapsed between the date of first exposure to (I) the claimant; or (3) NONMALIGNANT LEVEL III.—To receive asbestos or asbestos-containing products and (II) if the claimant is deceased, a coworker Level III compensation a claimant shall pro- the diagnosis; or or a family member of the claimant; and vide— (B) a history of the claimant’s exposure (ii) is found in proceedings under this title (A) a diagnosis of bilateral asbestos-related that is sufficient to establish a 10-year la- to be— nonmalignant disease with ILO grade of 1/0 tency period between the date of first expo- (I) reasonably reliable, attesting to the sure to asbestos or asbestos-containing prod- claimant’s exposure; and or greater and showing small irregular opac- ucts and the diagnosis. (II) credible and not contradicted by other ities of shape or size, either ss, st, or tt, and present in both lower lung zones, or asbes- (2) DIAGNOSTIC GUIDELINES.—All diagnoses evidence. of asbestos-related diseases shall be based (B) OTHER PROOF.—Exposure to asbestos tosis determined by pathology; upon— may alternatively be established by invoices, (B) evidence of TLC less than 80 percent; (A) for disease Levels I through V, in the construction or other similar records, or any FVC less than the lower limits of normal and case of a claimant who was living at the other reasonably reliable and credible evi- FEV1/FVC ratio greater than or equal to 65 time the claim was filed— dence. percent; or evidence of a decline in FVC of 20 (i) a physical examination of the claimant (C) ADDITIONAL EVIDENCE.—The Adminis- percent or greater, after allowing for the ex- by the physician providing the diagnosis; trator may require submission of other or pected decrease due to aging, and an FEV1/ (ii) an evaluation of smoking history and additional evidence of exposure, if available, FVC ratio greater than or equal to 65 per- exposure history before making a diagnosis; for a particular claim when determined nec- cent; (iii) an x-ray reading by a certified B-read- essary, as part of the minimum information (C) evidence of 5 or more weighted years of er; and required under section 113(c). substantial occupational exposure to asbes- (iv) pulmonary function testing in the case (3) TAKE-HOME EXPOSURE.— tos; and of disease Levels III, IV, and V; (A) IN GENERAL.—A claimant may alter- (D) supporting medical documentation, (B) for disease Levels I through V, in the natively satisfy the medical criteria require- such as a written opinion by the examining case of a claimant who was deceased at the ments of this section where a claim is filed or diagnosing physician, according to the di- time the claim was filed, a report from a by a person who alleges their exposure to as- agnostic guidelines in section 121(b)(2)— physician based upon a review of the claim- bestos was the result of living with a person (i) establishing asbestos exposure as the ant’s medical records which shall include— who, if the claim had been filed by that per- cause of the pulmonary condition in ques- (i) pathological evidence of the nonmalig- son, would have met the exposure criteria for tion; and nant asbestos-related disease; or the given disease level, and the claimant (ii) excluding other more likely causes of (ii) an x-ray reading by a certified B-read- lived with such person for the time period that pulmonary condition. er; necessary to satisfy the exposure require- (4) NONMALIGNANT LEVEL IV.—To receive (C) for disease Levels VI through IX, in the ment, for the claimed disease level. Level IV compensation a claimant shall pro- case of a claimant who was living at the (B) REVIEW.—Except for claims for disease vide— time the claim was filed— Level IX (mesothelioma), all claims alleging (B) evidence of TLC less than 60 percent or (i) a physical examination by the claim- take-home exposure shall be submitted as an FVC less than 60 percent, and FEV1/FVC ant’s physician providing the diagnosis; or exceptional medical claim under section ratio greater than or equal to 65 percent; (ii) a diagnosis of such a malignant asbes- 121(g) for review by a Physicians Panel. (C) evidence of 5 or more weighted years of tos-related disease, as described in this sec- (4) WAIVER FOR WORKERS AND RESIDENTS OF substantial occupational exposure to asbes- tion, by a board-certified pathologist; and LIBBY, MONTANA.—Because of the unique na- tos before diagnosis; and (D) for disease Levels VI through IX, in the ture of the asbestos exposure related to the (D) supporting medical documentation, case of a claimant who was deceased at the vermiculite mining and milling operations in such as a written opinion by the examining time the claim was filed— Libby, Montana, the Administrator shall or diagnosing physician, according to the di- (i) a diagnosis of such a malignant asbes- waive the exposure requirements under this agnostic guidelines in section 121(b)(2)— tos-related disease, as described in this sec- subtitle for individuals who worked at the (i) establishing asbestos exposure as the tion, by a board-certified pathologist; and vermiculite mining and milling facility in cause of the pulmonary condition in ques- (ii) a report from a physician based upon a Libby, Montana, or lived or worked within a tion; and review of the claimant’s medical records. 20-mile radius of Libby, Montana, for at least (ii) excluding other more likely causes, (3) CREDIBILITY OF MEDICAL EVIDENCE.—To 12 consecutive months before December 31, other than silica, of that pulmonary condi- ensure the medical evidence provided in sup- 2004. Claimants under this section shall pro- tion.

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(5) NONMALIGNANT LEVEL V.—To receive (A) state that the claim does not meet the (7) RULES.—The Administrator shall pro- Level V compensation a claimant shall pro- medical criteria requirements under this sec- mulgate rules governing the procedures for vide— tion; or seeking designation of a claim as an excep- (A) diagnosis of bilateral asbestos-related (B) seek designation as an exceptional tional medical claim. nonmalignant disease with ILO grade of 1/1 medical claim within 60 days after a deter- (8) LIBBY, MONTANA.— or greater and showing small irregular opac- mination that the claim is ineligible solely (A) IN GENERAL.—A Libby, Montana, claim- ities of shape or size, either ss, st, or tt, and for failure to meet the medical criteria re- ant may elect to have the claimant’s claims present in both lower lung zones, or asbes- quirements under subsection (d). designated as exceptional medical claims tosis determined by pathology; (3) REPORT OF PHYSICIAN.— and referred to a Physicians Panel for re- (B)(i) evidence of TLC less than 50 percent (A) IN GENERAL.—Any claimant applying view. In reviewing the medical evidence sub- or FVC less than 50 percent, and FEV1/FVC for designation of a claim as an exceptional mitted by a Libby, Montana claimant in sup- ratio greater than or equal to 65 percent; or medical claim shall support an application port of that claim, the Physicians Panel (iii) PO2 less than 55 mm/Hg, plus a FEV1/ filed under paragraph (1) with a report from shall take into consideration the unique and FVC ratio not less than 65 percent; a physician meeting the requirements of this serious nature of asbestos exposure in Libby, (C) evidence of 5 or more weighted years of section. Montana, including the nature of the pleural substantial occupational exposure to asbes- (B) CONTENTS.—A report filed under sub- disease related to asbestos exposure in tos; and paragraph (A) shall include— Libby, Montana. (D) supporting medical documentation, (i) a complete review of the claimant’s (B) CLAIMS.—For all claims for Levels II such as a written opinion by the examining medical history and current condition; through IV filed by Libby, Montana claim- or diagnosing physician, according to the di- (ii) such additional material by way of ants, as described under subsection (c)(4), agnostic guidelines in section 121(b)(2)— analysis and documentation as shall be pre- once the Administrator or the Physicians (i) establishing asbestos exposure as the scribed by rule of the Administrator; and Panel issues a certificate of medical eligi- cause of the pulmonary condition in ques- (iii) a detailed explanation as to why the bility to a Libby, Montana claimant, and tion; and claim meets the requirements of paragraph notwithstanding the disease category des- (ii) excluding other more likely causes, (4)(B). ignated in the certificate or the eligible dis- other than silica, of that pulmonary condi- (4) REVIEW.— ease or condition established in accordance tion. (A) IN GENERAL.—The Administrator shall with this section, or the value of the award (8) MALIGNANT LEVEL VIII.— refer all applications and supporting docu- determined in accordance with section 114, (A) IN GENERAL.—To receive Level VIII mentation submitted under paragraph (2) to the Libby, Montana claimant shall be enti- compensation, a claimant shall provide a di- a Physicians Panel for review for eligibility tled to an award that is not less than that agnosis— as an exceptional medical claim. awarded to claimants who suffer from asbes- (i) of a primary lung cancer disease on the (B) STANDARD.—A claim shall be des- tosis, Level IV. For all malignant claims basis of findings by a board certified patholo- ignated as an exceptional medical claim if filed by Libby, Montana claimants, the gist; the claimant, for reasons beyond the control Libby, Montana claimant shall be entitled to (ii)(I) of— of the claimant, cannot satisfy the require- an award that corresponds to the malignant (aa) asbestosis based on a chest x-ray of at ments under this section, but is able, disease category designated by the Adminis- least 1/0 on the ILO scale and showing small through comparably reliable evidence that trator or the Physicians Panel. irregular opacities of shape or size, either ss, meets the standards under this section, to (C) EVALUATION OF CLAIMS.—For purposes st, or tt, and present in both lower lung show that the claimant has an asbestos-re- of evaluating exceptional medical claims zones; and lated condition that is substantially com- from Libby, Montana, a claimant shall be (bb) 10 or more weighted years of substan- parable to that of a medical condition that deemed to have a comparable asbestos-re- tial occupational exposure to asbestos; would satisfy the requirements of a category lated condition to an asbestos disease cat- (II) of— under this section. egory Level IV, and shall be deemed to qual- (aa) asbestosis based on a chest x-ray of at (C) ADDITIONAL INFORMATION.—A Physi- ify for compensation at Level IV, if the least 1/1 on the ILO scale and showing small cians Panel may request additional reason- claimant provides— irregular opacities of shape or size, either ss, able testing to support the claimant’s appli- (i) a diagnosis of bilateral asbestos related st, or tt, and present in both lower lung cation. nonmalignant disease; zones; and (E) MESOTHELIOMA CASES.— (ii) evidence of TLC or FVC less than 80 (bb) 8 or more weighted years of substan- (i) IN GENERAL.—The Physicans Panel shall percent; and tial occupational exposure to asbestos; grant priority status to— (iii) supporting medical documentation es- (III) asbestosis determined by pathology (I) all Level IX claims with other identifi- tablishing asbestos exposure as a substantial and 10 or more weighted years of substantial able asbestos exposure as provided under contributing factor in causing the pul- occupational exposure to asbestos; and paragraph (9)(B)(iv); and monary condition in question, and excluding (iii) supporting medical documentation, (II) all Level IX claims that are filed as ex- more likely causes of that pulmonary condi- such as a written opinion by the examining ceptional medical claims. tion. or diagnosing physician, according to the di- (ii) PHYSICIAN PANEL.—If the Physicians (9) STUDY OF VERMICULITE PROCESSING FA- Panel issues a certificate of medical eligi- CILITIES.— agnostic guidelines in section 121(b)(2), es- bility, the claimant shall be deemed to qual- (A) IN GENERAL.—As part of the ongoing tablishing asbestos exposure as the cause of ify for Level IX compensation. If the Physi- National Asbestos Exposure Review (in this the lung cancer in question; and 10 or more cians Panel rejects the claim, and the Ad- section referred to as ‘‘NAER’’) being con- weighted years of substantial occupational ministrator deems it rejected, the claimant ducted by the Agency for Toxic Substances exposure to asbestos. may immediately seek judicial review under and Disease Registry (in this section referred (9) MALIGNANT LEVEL IX.—To receive Level section 302. to as ‘‘ATSDR’’) of facilities that received IX compensation, a claimant shall provide— (5) APPROVAL.— vermiculite ore from Libby, Montana, the (A) a diagnosis of malignant mesothelioma (A) IN GENERAL.—If the Physicians Panel ATSDR shall conduct a study of all Phase 1 disease on the basis of findings by a board determines that the medical evidence is suf- sites where— certified pathologist; and ficient to show a comparable asbestos-re- (i) the Environmental Protection Agency (B) credible evidence of identifiable expo- lated condition, it shall issue a certificate of has mandated further action at the site on sure to asbestos resulting from— medical eligibility designating the category the basis of current contamination; or (i) occupational exposure to asbestos; of asbestos-related injury under this section (ii) the site was an exfoliation facility that (ii) exposure to asbestos fibers brought for which the claimant shall be eligible to processed roughly 100,000 tons or more of into the home of the claimant by a worker seek compensation. vermiculite from the Libby mine. occupationally exposed to asbestos; or (B) REFERRAL.—Upon the issuance of a cer- (B) STUDY BY ATSDR.—The study by the (iii) exposure to asbestos fibers resulting tificate under subparagraph (A), the Physi- ATSDR shall evaluate the facilities identi- from living or working in the proximate vi- cians Panel shall submit the claim to the fied under subparagraph (A) and compare— cinity of a factory, shipyard, building demo- Administrator, who shall give due consider- (i) the levels of asbestos emissions from lition site, or other operation that regularly ation to the recommendation of the Physi- such facilities; released asbestos fibers into the air due to cians Panel in determining whether the (ii) the resulting asbestos contamination operations involving asbestos at that site. claimant meets the requirements for com- in areas surrounding such facilities; (g) EXCEPTIONAL MEDICAL CLAIMS.— pensation under this Act. (iii) the levels of exposure to residents liv- (1) IN GENERAL.—A claimant who does not (6) RESUBMISSION.—Any claimant whose ap- ing in the vicinity of such facilities; meet the medical criteria requirements plication for designation as an exceptional (iv) the risks of asbestos-related disease to under this section may apply for designation medical claim is rejected may resubmit an the residents living in the vicinity of such of the claim as an exceptional medical claim. application if new evidence becomes avail- facilities; and (2) APPLICATION.—When submitting an ap- able. The application shall identify any prior (v) the risk of asbestos-related mortality plication for review of an exceptional med- applications and state the new evidence that to residents living in the vicinity of such fa- ical claim, the claimant shall— forms the basis of the resubmission. cilities,

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to the emissions, contamination, exposures, (ii) JOINT PROPOSAL.—Not later than 45 confidential and shall be disclosed to the and risks resulting from the mining of days after the date of enactment of this Act, other party upon execution of an appropriate vermiculite ore in Libby, Montana. representatives of railroad management and confidentiality agreement. Unless the sub- (C) RESULTS OF STUDY.—The results of the representatives of railroad labor shall sub- mitting party provides written consent, nei- study required under this paragraph shall be mit to the Administrator a joint proposal for ther the arbitrator nor either party to the transmitted to the Administrator. regulations describing the eligibility for and arbitration shall divulge to any third party amount of special adjustments under this any information or data, in any form, sub- Subtitle D—Awards paragraph. If a joint proposal is submitted, mitted to the arbitrator under this section. SEC. 131. AMOUNT. the Administrator shall promulgate regula- Nor shall either party use such information (a) IN GENERAL.—An asbestos claimant who tions that reflect the joint proposal. or data for any purpose other than participa- meets the requirements of section 111 shall (iii) ABSENCE OF JOINT PROPOSAL.—If rail- tion in the arbitration proceeding, and each be entitled to an award in an amount deter- road management and railroad labor are un- party shall return to the other any informa- mined by reference to the benefit table and able to agree on a joint proposal within 45 tion it has received from the other party as the matrices developed under subsection (b). days after the date of enactment of this Act, soon the arbitration is concluded. Informa- the benefits prescribed in subparagraph (E) tion submitted to the arbitrator may not be (b) BENEFIT TABLE.— shall be the benefits available to claimants, admitted into evidence, nor discovered, in (1) IN GENERAL.—An asbestos claimant with and the Administrator shall promulgate reg- any civil litigation in Federal or State court. an eligible disease or condition established ulations containing such benefits. in accordance with section 121 shall be eligi- The nature of the information submitted to (iv) REVIEW.—The parties participating in ble for an award as determined under this the arbitrator shall be within the sole discre- the arbitration may file in the United States tion of the submitting party, and the arbi- subsection. The award for all asbestos claim- District Court for the District of Columbia a ants with an eligible disease or condition es- trator may not require a party to submit any petition for review of the Administrator’s particular information, including informa- tablished in accordance with section 121 order. The court shall have jurisdiction to shall be according to the following schedule: tion subject to a prior confidentiality agree- affirm the order of the Administrator, or to ment. Level Scheduled Condi- Scheduled Value set it aside, in whole or in part, or it may re- (F) DEMONSTRATION OF ELIGIBILITY.— tion or Disease. mand the proceedings to the Administrator (i) IN GENERAL.—A claimant under this I Asbestosis/Pleu- Medical Moni- for such further action as it may direct. On paragraph shall be required to demonstrate— ral Disease A. toring such review, the findings and order of the (I) employment of the claimant in the rail- II Mixed Disease $25,000 Administrator shall be conclusive on the road industry; With Impair- parties, except that the order of the Admin- (II) exposure of the claimant to asbestos as ment. istrator may be set aside, in whole or in part of that employment; and III Asbestosis/Pleu- $100,000 parts or remanded to the Administrator, for (III) the nature and severity of the asbes- ral Disease B. failure of the Administrator to comply with tos-related injury. the requirements of this section, for failure IV Severe Asbes- $400,000 (ii) MEDICAL CRITERIA.—In order to be eligi- tosis. of the order to conform, or confine itself, to ble for a special adjustment a claimant shall matters within the scope of the Administra- V Disabling Asbes- $850,000 meet the criteria set forth in section 121 that tor’s jurisdiction, or for fraud or corruption. tosis. would qualify a claimant for a payment (C) ELIGIBILITY.—An individual eligible to VIII Lung Cancer smokers, $600,000; under Level II or greater. With Asbes- ex-smokers, file a claim under the Act of April 22, 1908 (45 (5) MEDICAL MONITORING.—An asbestos U.S.C. 51 et seq.), commonly known as the tosis. $975,000; claimant with asymptomatic exposure, based Employers’ Liability Act, shall be eligible non-smokers, on the criteria under section 121(d)(1), shall $1,100,000 for a special adjustment under this para- only be eligible for medical monitoring reim- graph if such individual meets the criteria IX Mesothelioma .... $1,100,000 bursement as provided under section 132. set forth in subparagraph (F). (2) DEFINITIONS.—In this section— (6) COST-OF-LIVING ADJUSTMENT.— (D) AMOUNT.— (A) the term ‘‘nonsmoker’’ means a claim- (A) IN GENERAL.—Beginning January 1, (i) IN GENERAL.—The amount of the special 2007, award amounts under paragraph (1) ant who— adjustment shall be based on the type and shall be annually increased by an amount (i) never smoked; or severity of asbestos disease, and shall be 110 (ii) has smoked fewer than 100 cigarettes or percent of the average amount an injured in- equal to such dollar amount multiplied by the equivalent of other tobacco products dur- dividual with a disease caused by asbestos, the cost-of-living adjustment, rounded to the ing the claimant’s lifetime; and as described in section 121(d) of this Act, nearest $1,000 increment. (B) the term ‘‘ex-smoker’’ means a claim- would have received, during the 5-year period (B) CALCULATION OF COST-OF-LIVING ADJUST- ant who has not smoked during any portion before the enactment of this Act, adjusted MENT.—For the purposes of subparagraph (A), of the 12-year period preceding the diagnosis for inflation. This adjustment shall be in ad- the cost-of-living adjustment for any cal- of lung cancer. dition to any other award for which the endar year shall be the percentage, if any, by (3) LEVEL IX ADJUSTMENTS.— claimant is eligible under this Act. The which the consumer price index for the suc- (A) IN GENERAL.—The Administrator may amount of the special adjustment shall be re- ceeding calendar year exceeds the consumer increase awards for Level IX claimants who duced by an amount reasonably calculated to price index for calendar year 2005. have dependent children so long as the in- take into account all expenses of litigation (C) CONSUMER PRICE INDEX.— crease under this paragraph is cost neutral. normally borne by plaintiffs, including at- (i) IN GENERAL.—For the purposes of sub- Such increased awards shall be paid for by torney’s fees. paragraph (B), the consumer price index for decreasing awards for claimants other than (ii) LIMITATION.—The amount under clause any calendar year is the average of the con- Level IX, so long as no award levels are de- (i) may not exceed the amount the claimant sumer price index as of the close of the 12- creased more than 10 percent. is eligible to receive before applying the spe- month period ending on August 31 of such (B) IMPLEMENTATION.—Before making ad- cial adjustment under that clause. calendar year. justments under this paragraph, the Admin- (E) ARBITRATED BENEFITS.—If railroad (ii) DEFINITION.—For purposes of clause (i), istrator shall publish in the Federal Register management and railroad labor are unable to the term ‘‘consumer price index’’ means the notice of, and a plan for, making such ad- agree on a joint proposal within 45 days after consumer price index published by the De- justments. the date of enactment of this Act, the Ad- partment of Labor. The consumer price index (4) SPECIAL ADJUSTMENT FOR FELA CASES.— ministrator shall appoint an arbitrator to series to be used for award escalations shall (A) IN GENERAL.—A claimant who would be determine the benefits under subparagraph include the consumer price index used for eligible to bring a claim under the Act of (D). The Administrator shall appoint an arbi- all-urban consumers, with an area coverage April 22, 1908 (45 U.S.C. 51 et seq.), commonly trator who shall be acceptable to both rail- of the United States city average, for all known as the Employers’ Liability Act, but road management and railroad labor. Rail- items, based on the 1982–1984 index based pe- for section 403 of this Act, shall be eligible road management and railroad labor shall riod, as published by the Department of for a special adjustment under this para- each designate their representatives to par- Labor. graph. ticipate in the arbitration. The arbitrator SEC. 132. MEDICAL MONITORING. (B) REGULATIONS.— shall submit the benefits levels to the Ad- (i) IN GENERAL.—Not later than 90 days ministrator not later than 30 days after ap- (a) RELATION TO STATUTE OF LIMITATIONS.— after the date of enactment of this Act, the pointment and such benefits levels shall be The filing of a claim under this Act that Administrator shall promulgate regulations based on information provided by rail labor seeks reimbursement for medical monitoring relating to special adjustments under this and rail management. The information sub- shall not be considered as evidence that the paragraph. mitted to the arbitrator by railroad manage- claimant has discovered facts that would ment and railroad labor shall be considered otherwise commence the period applicable

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for purposes of the statute of limitations (C) TIMING OF PAYMENTS TO BE ADJUSTED SEC. 135. CERTAIN CLAIMS NOT AFFECTED BY under section 113(b). WITH RESPECT TO SOLVENCY OF THE FUND.—If PAYMENT OF AWARDS. (b) COSTS.—Reimbursable medical moni- the Administrator determines that solvency (a) IN GENERAL.—The payment of an award toring costs shall include the costs of a of the Fund would be severely harmed by the under section 106 or 133 shall not be consid- claimant not covered by health insurance for timing of the payments required under sub- ered a form of compensation or reimburse- an examination by the claimant’s physician, paragraph (B), the time for such payments ment for a loss for purposes of imposing li- x-ray tests, and pulmonary function tests may be extended to the shorter of— ability on any asbestos claimant receiving every 3 years. (i) not later than 1 year after the date the such payment to repay any— (1) life or health insurance carrier for in- (c) REGULATIONS.—The Administrator shall claim is approved by the Administrator; or promulgate regulations that establish— (ii) not later than 2 years after the date surance payments; or (1) the reasonable costs for medical moni- the claim is filed. (2) person or governmental entity on ac- count of health care or disability payments. toring that is reimbursable; and (D) PRIORITIZATION OF CLAIMS.—The Ad- (b) NO EFFECT ON CLAIMS.— (2) the procedures applicable to asbestos ministrator shall, in final regulations pro- (1) IN GENERAL.—The payment of an award claimants. mulgated under section 101(c), designate cat- to an asbestos claimant under section 106 or egories of claims to be handled on an expe- SEC. 133. PAYMENT. 133 shall not affect any claim of an asbestos (a) STRUCTURED PAYMENTS.— dited basis. The Administrator shall claimant against— (1) IN GENERAL.—An asbestos claimant who prioritize the processing and payment of (A) a life or health insurance carrier with is entitled to an award should receive the health claims involving claimants with the respect to insurance; or amount of the award through structured most serious health risks. The Adminis- (B) against any person or governmental en- payments from the Fund, made over a period trator shall also prioritize claims from tity with respect to healthcare or disability. claimants who face extreme financial hard- of 3 years, and in no event more than 4 years (2) RULE OF CONSTRUCTION.—Nothing in this after the date of final adjudication of the ship. subsection shall be construed to authorize claim. (6) ANNUITY.—An asbestos claimant may the pursuit of a claim that is preempted (2) PAYMENT PERIOD AND AMOUNT.—There elect to receive any payments to which that under section 403. claimant is entitled under this title in the shall be a presumption that any award paid TITLE II—ASBESTOS INJURY CLAIMS form of an annuity. under this subsection shall provide for pay- RESOLUTION FUND (b) LIMITATION ON TRANSFERABILITY.—A ment of— Subtitle A—Asbestos Defendants Funding claim filed under this Act shall not be as- (A) 40 percent of the total amount in year Allocation 1; signable or otherwise transferable under this (B) 30 percent of the total amount in year Act. SEC. 201. DEFINITIONS. In this subtitle, the following definitions 2; and REDITORS.—An award under this title (c) C shall apply: (C) 30 percent of the total amount in year shall be exempt from all claims of creditors (1) AFFILIATED GROUP.—The term ‘‘affili- 3. and from levy, execution, and attachment or ated group’’— (3) EXTENSION OF PAYMENT PERIOD.— other remedy for recovery or collection of a (A) means a defendant participant that is (A) IN GENERAL.—The Administrator shall debt, and such exemption may not be waived. an ultimate parent and any person whose en- develop guidelines to provide for the pay- (d) MEDICARE AS SECONDARY PAYER.—No tire beneficial interest is directly or indi- ment period of an award under subsection (a) award under this title shall be deemed a pay- rectly owned by that ultimate parent on the to be extended to a 4-year period if such ac- ment for purposes of section 1862 of the So- date of enactment of this Act; and tion is warranted in order to preserve the cial Security Act (42 U.S.C. 1395y). (B) shall not include any person that is a overall solvency of the Fund. Such guide- (e) EXEMPT PROPERTY IN ASBESTOS CLAIM- debtor or any direct or indirect majority- lines shall include reference to the number ANT’S BANKRUPTCY CASE.—If an asbestos owned subsidiary of a debtor. of claims made to the Fund and the awards claimant files a petition for relief under sec- (2) INDEMNIFIABLE COST.—The term made and scheduled to be paid from the Fund tion 301 of title 11, United States Code, no ‘‘indemnifiable cost’’ means a cost, expense, as provided under section 405. award granted under this Act shall be treat- debt, judgment, or settlement incurred with (B) LIMITATIONS.—In no event shall less ed as property of the bankruptcy estate of respect to an asbestos claim that, at any than 50 percent of an award be paid in the the asbestos claimant in accordance with time before December 31, 2002, was or could first 2 years of the payment period under section 541(b)(6) of title 11, United States have been subject to indemnification, con- this subsection. Code. tribution, surety, or guaranty. (4) LUMP-SUM PAYMENTS.— (f) EFFECT OF PAYMENT.—The payment of (3) INDEMNITEE.—The term ‘‘indemnitee’’ (A) IN GENERAL.—The Administrator shall an asbestos claim under this section shall be means a person against whom any asbestos develop guidelines to provide for 1 lump-sum in full satisfaction of such claim and shall be claim has been asserted before December 31, payment to asbestos claimants who are deemed to operate as a release to such claim. 2002, who has received from any other per- mesothelioma victims and who are alive on No claimant with an asbestos claim that will son, or on whose behalf a sum has been paid the date on which the Administrator re- be paid under this section may proceed in by such other person to any third person, in ceives notice of the eligibility of the claim- the tort system with respect to such claim. settlement, judgment, defense, or indemnity ant. in connection with an alleged duty with re- (B) TIMING OF PAYMENTS.—Lump-sum pay- SEC. 134. SETOFFS FOR COLLATERAL SOURCE spect to the defense or indemnification of ments shall be made within the shorter of— COMPENSATION AND PRIOR such person concerning that asbestos claim, AWARDS. (i) not later than 30 days after the date the other than under a policy of insurance or re- claim is approved by the Administrator; or (a) IN GENERAL.—The amount of an award insurance. (ii) not later than 6 months after the date otherwise available to an asbestos claimant (4) INDEMNITOR.—The term ‘‘indemnitor’’ the claim is filed. under this title shall be reduced by the means a person who has paid under a written (C) TIMING OF PAYMENTS TO BE ADJUSTED amount of any collateral source compensa- agreement at any time before December 31, WITH RESPECT TO SOLVENCY OF THE FUND.—If tion and by any amounts paid or to be paid 2002, a sum in settlement, judgment, defense, the Administrator determines that solvency to the claimant for a prior award under this or indemnity to or on behalf of any person of the Fund would be severely harmed by the Act. defending against an asbestos claim, in con- timing of the payments required under sub- (b) EXCLUSIONS.— nection with an alleged duty with respect to paragraph (B), the time for such payments (1) COLLATERAL SOURCE COMPENSATION.—In the defense or indemnification of such per- may be extended to the shorter of— no case shall special adjustments made son concerning that asbestos claim, except (i) not later than 6 months after the date under section 131(b)(3), occupational or total that payments by an insurer or reinsurer the claim is approved by the Administrator; disability benefits under the Railroad Re- under a contract of insurance or reinsurance or tirement Act (45 U.S.C. 201 et seq.), sickness shall not make the insurer or reinsurer an (ii) not later than 11 months after the date benefits under the Railroad Unemployment indemnitor for purposes of this subtitle. the claim is filed. Insurance Act (45 U.S.C 351 et seq.), and vet- (5) PRIOR ASBESTOS EXPENDITURES.—The (5) EXPEDITED PAYMENTS.— erans’ benefits programs be deemed as col- term ‘‘prior asbestos expenditures’’— (A) IN GENERAL.—The Administrator shall lateral source compensation for purposes of (A) means the gross total amount paid by develop guidelines to provide for expedited this section. or on behalf of a person at any time before payments to asbestos claimants in cases of (2) PRIOR AWARD PAYMENTS.—Any amounts December 31, 2002, in settlement, judgment, terminal health claims as described under paid or to be paid for a prior claim for a non- defense, or indemnity costs related to all as- section 106(c)(2)(B) and (C). malignant disease (Levels I through V) filed bestos claims against that person; (B) TIMING OF PAYMENTS.—Total payments against the Fund shall not be deducted as a (B) includes payments made by insurance shall be made within the shorter of— setoff against amounts payable for the sec- carriers to or for the benefit of such person (i) not later than 6 months after the date ond injury claims for a malignant disease or on such person’s behalf with respect to the claim is approved by the Administrator; (Levels VI through IX), unless the malig- such asbestos claims, except as provided in or nancy was diagnosed before the date on section 204(h); (ii) not later than 1 year after the date the which the nonmalignancy claim was com- (C) shall not include any payment made by claim is filed. pensated. a person in connection with or as a result of

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changes in insurance reserves required by (A) IN GENERAL.—In this subsection, the the certification. Any timely appeal under contract or any activity or dispute related to term ‘‘bankrupt business entity’’ means a title 11, United States Code, from a con- insurance coverage matters for asbestos-re- person that is not a natural person that— firmation order entered during the applica- lated liabilities; and (i) filed a petition for relief under chapter ble time period shall automatically extend (D) shall not include any payment made by 11, of title 11, United States Code, before the time during which this Act is inappli- or on behalf of persons who are or were com- January 1, 2003; cable to the bankrupt business entity, until mon carriers by railroad for asbestos claims (ii) has not substantially consummated, as the appeal is fully and finally resolved. brought under the Act of April 22, 1908 (45 such term is defined under section 1101(2) of (4) OFFSETS.— U.S.C. 51 et seq.), commonly known as the title 11, United States Code, a plan of reorga- (A) PAYMENTS BY INSURERS.—To the extent Employers’ Liability Act, as a result of oper- nization as of the date of enactment of this that a bankrupt business entity or debtor ations as a common carrier by railroad, in- Act; and successfully confirms a plan of reorganiza- cluding settlement, judgment, defense, or in- (iii) the bankruptcy court presiding over tion, including a trust, and channeling in- demnity costs associated with these claims. the business entity’s case determines, after junction that involves payments by insurers (6) ULTIMATE PARENT.—The term ‘‘ultimate notice and a hearing upon motion filed by who are otherwise subject to this Act as de- parent’’ means a person— the entity within 30 days after the date of scribed under section 524(g) of title 11, (A) that owned, as of December 31, 2002, the enactment of this Act, that asbestos liability United States Code, an insurer who makes entire beneficial interest, directly or indi- was not the sole or precipitating cause of the payments to the trust shall obtain a dollar- rectly, of at least 1 other person; and entity’s chapter 11 filing. for-dollar reduction in the amount otherwise (B) whose entire beneficial interest was not (B) MOTION AND RELATED MATTERS.—A mo- payable by that insurer under this Act to the owned, on December 31, 2002, directly or indi- tion under subparagraph (A)(iii) shall be sup- Fund. rectly, by any other single person (other ported by— (B) CONTRIBUTIONS TO FUND.—Any cash than a natural person). (i) an affidavit or declaration of the chief payments by a bankrupt business entity, if (7) ASBESTOS PREMISES CLAIM.—The term executive officer, chief financial officer, or any, to a trust described under section 524(g) ‘‘asbestos premises claim’’— chief legal officer of the business entity; and of title 11, United States Code, may be (A) means an asbestos claim against a cur- (ii) copies of the entity’s public statements counted as a contribution to the Fund. and securities filings made in connection rent or former premises owner or landowner, (d) TIERS II THROUGH VI.—Except as pro- with the entity’s filing for chapter 11 protec- or person controlling or possessing premises vided in section 204 and subsection (b) of this tion. or land, alleging injury or death caused by section, persons or affiliated groups are in- Notice of such motion shall be as directed by exposure to asbestos on such premises or cluded in Tier II, III, IV, V, or VI, according the bankruptcy court, and the hearing shall land or by exposure to asbestos carried off to the prior asbestos expenditures paid by be limited to consideration of the question of such premises or land on the clothing or be- such persons or affiliated groups as follows: whether or not asbestos liability was the longings of another person; and (1) Tier II: $75,000,000 or greater. sole or precipitating cause of the entity’s (B) includes any such asbestos claim (2) Tier III: $50,000,000 or greater, but less chapter 11 filing. The bankruptcy court shall against a current or former employer alleg- than $75,000,000. hold a hearing and make its determination ing injury or death caused by exposure to as- (3) Tier IV: $10,000,000 or greater, but less bestos on premises or land owned, controlled with respect to the motion within 30 days after the date the motion is filed. In making than $50,000,000. or possessed by the employer, if such claim its determination, the bankruptcy court (4) Tier V: $5,000,000 or greater, but less is not a claim for benefits under a workers’ shall take into account the affidavits, public than $10,000,000. compensation law or veterans’ benefits pro- statements, and securities filings, and other (5) Tier VI: $1,000,000 or greater, but less gram. information, if any, submitted by the entity than $5,000,000. (8) ASBESTOS PREMISES DEFENDANT PARTICI- and all other facts and circumstances pre- (6) ASBESTOS PREMISES DEFENDANT PARTICI- PANT.—The term ‘‘asbestos premises defend- sented by an objecting party. Any review of PANTS.— ant participant’’ means any defendant par- this determination shall be an expedited ap- (A) IN GENERAL.—Asbestos premises de- ticipant for which 95 percent or more of its peal and limited to whether the decision was fendant participants that would be included prior asbestos expenditures relate to asbes- against the weight of the evidence. Any ap- in Tier II, III, IV or V according to their tos premises claims against that defendant peal of a determination shall be an expedited prior asbestos expenditures shall, after 5 participant. review to the United States Circuit Court of years of the Fund being operational, instead SEC. 202. AUTHORITY AND TIERS. Appeals for the circuit in which the bank- be assigned to the immediately lower tier, such that— (a) LIABILITY FOR PAYMENTS TO THE ruptcy is filed. (2) PROCEEDING WITH REORGANIZATION (i) an asbestos premises defendant partici- FUND.— PLAN.—A bankrupt business entity may pro- pant that would be assigned to Tier II shall (1) IN GENERAL.—Defendant participants instead be assigned to Tier III; shall be liable for payments to the Fund in ceed with the filing, solicitation, confirma- tion, and consummation of a plan of reorga- (ii) an asbestos premises defendant partici- accordance with this section based on tiers pant that would be assigned to Tier III shall and subtiers assigned to defendant partici- nization that does not comply with the re- quirements of this Act, including a trust and instead be assigned to Tier IV; pants. channeling injunction described in section (iii) an asbestos premises defendant partic- (2) AGGREGATE PAYMENT OBLIGATIONS 524(g) of title 11, United States Code, not- ipant that would be assigned to Tier IV shall LEVEL.—The total payments required of all withstanding any other provisions of this instead be assigned to Tier V; and defendant participants over the life of the Act, if the bankruptcy court makes a favor- (iv) an asbestos premises defendant partici- Fund shall not exceed a sum equal to able determination under paragraph (1)(B), pant that would be assigned to Tier V shall $90,000,000,000 less any bankruptcy trust cred- unless the bankruptcy court’s determination instead be assigned to Tier VI. its under section 222(d). The Administrator is overruled on appeal and all appeals are (B) RETURN TO ORIGINAL TIER.—The Admin- shall have the authority to allocate the pay- final. Such a bankrupt business entity may istrator may return asbestos premises de- ments required of the defendant participants continue to so proceed, if— fendant participants to their original tier, on among the tiers as provided in this title. (A) on request of a party in interest or on a yearly basis, if the Administrator deter- (3) ABILITY TO ENTER REORGANIZATION.— a motion of the court, and after a notice and mines that the additional revenues that Notwithstanding any other provision of this a hearing, the bankruptcy court presiding would be collected are needed to preserve the Act, all debtors that, together with all of over the chapter 11 case of the bankrupt solvency of the Fund. their direct or indirect majority-owned sub- business entity determines that such con- (e) TIER PLACEMENT AND COSTS.— sidiaries, have prior asbestos expenditures firmation is required to avoid the liquidation (1) PERMANENT TIER PLACEMENT.—After a less than $1,000,000 may proceed with the fil- or the need for further financial reorganiza- defendant participant or affiliated group is ing, solicitation, and confirmation of a plan tion of that entity; and assigned to a tier and subtier under section of reorganization that does not comply with (B) an order confirming the plan of reorga- 204(j)(6), the participant or affiliated group the requirements of this Act, including a nization is entered by the bankruptcy court shall remain in that tier and subtier trust and channeling injunction under sec- within 9 months after the date of enactment throughout the life of the Fund, regardless of tion 524(g) of title 11, United States Code. of this Act or such longer period of time ap- subsequent events, including— Any asbestos claim made in conjunction proved by the bankruptcy court for cause (A) the filing of a petition under a chapter with a plan of reorganization allowable shown. of title 11, United States Code; under the preceding sentence shall be subject (3) APPLICABILITY.—If the bankruptcy (B) a discharge of debt in bankruptcy; to section 403(d) of this Act. court does not make the determination re- (C) the confirmation of a plan of reorga- (b) TIER I.—Tier I shall include all debtors quired under paragraph (2), or if an order nization; or that, together with all of their direct or indi- confirming the plan is not entered within 9 (D) the sale or transfer of assets to any rect majority-owned subsidiaries, have prior months after the date of enactment of this other person or affiliated group, unless the asbestos expenditures greater than $1,000,000. Act or such longer period of time approved Administrator finds that the information (c) TREATMENT OF TIER I BUSINESS ENTITIES by the bankruptcy court for cause shown, submitted by the participant or affiliated IN BANKRUPTCY.— the provisions of this Act shall apply to the group to support its inclusion in that tier (1) DEFINITION.— bankrupt business entity notwithstanding was inaccurate.

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(2) COSTS.—Payments to the Fund by all sidiaries of that debtor, except that the pro majority owned subsidiary is liquidated in persons that are the subject of a case under forma revenues of a person that is included connection with such foreign insolvency pro- a chapter of title 11, United States Code, in Subtier 2 of Tier I shall not be included in ceedings (or if the debtor participant’s inter- after the date of enactment of this Act— calculating the revenues of any debtor that est in such foreign subsidiary is otherwise (A) shall constitute costs and expenses of is a direct or indirect majority owner of such canceled or terminated in connection with administration of the case under section 503 Subtier 2 person. If a debtor or affiliated such foreign insolvency proceedings), the of title 11, United States Code, and shall be group includes a person in respect of whose debtor participant shall have a claim against payable in accordance with the payment pro- liabilities for asbestos claims a class action such foreign subsidiary or the estate of such visions under this subtitle notwithstanding trust has been established, there shall be ex- foreign subsidiary in an amount equal to the the pendency of the case under that title 11; cluded from the 2002 revenues of such debtor greater of— (B) shall not be stayed or affected as to en- or affiliated group— (aa) the estimated amount of all current forcement or collection by any stay or in- (i) all revenues of the person in respect of and future asbestos liabilities against such junction power of any court; and whose liabilities for asbestos claims the foreign subsidiary; or (C) shall not be impaired or discharged in class action trust was established; and (bb) the foreign subsidiary’s allocable any current or future case under title 11, (ii) all revenues of the debtor and affiliated share of the debtor participant’s funding ob- United States Code. group attributable to the historical business ligations to the Fund as determined by such (f) SUPERSEDING PROVISIONS.— operations or assets of such person, regard- foreign subsidiary’s allocable share of the (1) IN GENERAL.—All of the following shall less of whether such business operations or debtor participant’s 2002 gross revenue. be superseded in their entireties by this Act: assets were owned or conducted during the (II) DETERMINATION OF CLAIM AMOUNT.—The (A) The treatment of any asbestos claim in year 2002 by such person or by any other per- claim amount under subclause (I) (aa) or (bb) any plan of reorganization with respect to son included within such debtor and affili- shall be determined by a court of competent any debtor included in Tier I. ated group. jurisdiction in the United States. (B) Any asbestos claim against any debtor (b) TIER I SUBTIERS.— (III) EFFECT ON PAYMENT OBLIGATION.—The included in Tier I. (1) IN GENERAL.—Each debtor in Tier I shall right to, or recovery under, any such claim (C) Any agreement, understanding, or un- be included in subtiers and shall pay shall not reduce, limit, delay, or otherwise dertaking by any such debtor or any third amounts to the Fund as provided under this affect the debtor participant’s payment obli- party with respect to the treatment of any section. gations under this Act. asbestos claim filed in a debtor’s bankruptcy (2) SUBTIER 1.— (iv) MAXIMUM ANNUAL PAYMENT OBLIGA- (A) IN GENERAL.—All persons that are debt- case or with respect to a debtor before the TION.—Subject to any payments under para- ors with prior asbestos expenditures of date of enactment of this Act, whenever such graphs (3), (4), and (5) of this subsection, the $1,000,000 or greater, shall be included in debtor’s case is either still pending, if such annual payment obligation by a debtor under Subtier 1. case is pending under a chapter other than subparagraph (B) of this paragraph shall not (B) PAYMENT.— chapter 11 of title 11, United States Code, or exceed $80,000,000. (i) IN GENERAL.—Each debtor included in subject to confirmation or substantial con- (3) SUBTIER 2.— Subtier 1 shall pay on an annual basis 1.67024 summation of a plan of reorganization under (A) IN GENERAL.—Notwithstanding para- percent of the debtor’s 2002 revenues. graph (2), all persons that are debtors that chapter 11 of title 11, United States Code. (ii) EXCEPTION TO PAYMENT PERCENTAGE.— have no material continuing business oper- (2) PRIOR AGREEMENTS OF NO EFFECT.—Not- Notwithstanding clause (i), a debtor in ations, other than class action trusts under withstanding section 403(c)(3), any plan of re- Subtier 1 shall pay, on an annual basis, paragraph (6), but hold cash or other assets organization, agreement, understanding, or $500,000 if— that have been allocated or earmarked for undertaking by any debtor (including any (I) such debtor, including its direct or indi- the settlement of asbestos claims shall be in- pre-petition agreement, understanding, or rect majority-owned subsidiaries, has less cluded in Subtier 2. undertaking that requires future perform- than $10,000,000 in prior asbestos expendi- (B) ASSIGNMENT OF ASSETS.—Not later than ance) or any third party under paragraph (1), tures; 90 days after the date of enactment of this and any agreement, understanding, or under- (II) at least 95 percent of such debtors reve- Act, each person included in Subtier 2 shall taking entered into in anticipation, con- nues derive from the provision of engineer- assign all of its unencumbered assets to the templation, or furtherance of a plan of reor- ing and construction services; and Fund. ganization, to the extent it relates to any as- (III) such debtor, including its direct or in- (4) SUBTIER 3.— bestos claim, shall be of no force or effect, direct majority-owned subsidiaries, never (A) IN GENERAL.—Notwithstanding para- and no person shall have any right or claim manufactured, sold, or distributed asbestos- graph (2), all persons that are debtors other with respect to any such agreement, under- containing products in the stream of com- than those included in Subtier 2, which have standing, or undertaking. merce. no material continuing business operations SEC. 203. SUBTIERS. (C) OTHER ASSETS.—The Administrator, at and no cash or other assets allocated or ear- (a) IN GENERAL.— the sole discretion of the Administrator, marked for the settlement of any asbestos (1) SUBTIER LIABILITY.—Except as other- may allow a Subtier 1 debtor to satisfy its claim, shall be included in Subtier 3. wise provided under subsections (b), (d), and funding obligation under this paragraph with (B) ASSIGNMENT OF UNENCUMBERED AS- (l) of section 204, persons or affiliated groups assets other than cash if the Administrator SETS.—Not later than 90 days after the date shall be included within Tiers I through VII determines that requiring an all-cash pay- of enactment of this Act, each person in- and shall pay amounts to the Fund in ac- ment of the debtor’s funding obligation cluded in Subtier 3 shall contribute an cordance with this section. would render the debtor’s reorganization in- amount equal to 50 percent of its total (2) REVENUES.— feasible. unencumbered assets. (A) IN GENERAL.—For purposes of this sec- (D) LIABILITY.— (5) CALCULATION OF UNENCUMBERED AS- tion, revenues shall be determined in accord- (i) IN GENERAL.—If a person who is subject SETS.—Unencumbered assets shall be cal- ance with generally accepted accounting to a case pending under a chapter of title 11, culated as the Subtier 3 person’s total assets, principles, consistently applied, using the United States Code, as defined in section excluding insurance-related assets, jointly amount reported as revenues in the annual 201(3)(A)(i), does not pay when due any pay- held, in trust or otherwise, with a defendant report filed with the Securities and Ex- ment obligation for the debtor, the Adminis- participant, less— change Commission in accordance with the trator shall have the right to seek payment (A) all allowable administrative expenses; Securities Exchange Act of 1934 (15 U.S.C. 78a of all or any portion of the entire amount (B) allowable priority claims under section et seq.) for the most recent fiscal year end- due (as well as any other amount for which 507 of title 11, United States Code; and ing on or before December 31, 2002. If the de- the debtor may be liable under sections 223 (C) allowable secured claims. fendant participant or affiliated group does and 224) from any of the direct or indirect (6) CLASS ACTION TRUST.—The assets of any not file reports with the Securities and Ex- majority-owned subsidiaries under section class action trust that has been established change Commission, revenues shall be the 201(3)(A)(ii). in respect of the liabilities for asbestos amount that the defendant participant or af- (ii) CAUSE OF ACTION.—Notwithstanding claims of any person included within a debt- filiated group would have reported as reve- section 221(e), this Act shall not preclude ac- or and affiliated group that has been in- nues under the rules of the Securities and tions among persons within a debtor under cluded in Tier I (exclusive of any assets Exchange Commission in the event that it section 201(3)(A) (i) and (ii) with respect to needed to pay previously incurred expenses had been required to file. the payment obligations under this Act. and asbestos claims within the meaning of (B) INSURANCE PREMIUMS.—Any portion of (iii) RIGHT OF CONTRIBUTION.— section 403(d)(1), before the date of enact- revenues of a defendant participant that is (I) IN GENERAL.—Notwithstanding any ment of this Act) shall be transferred to the derived from insurance premiums shall not other provision of this Act, if a direct or in- Fund not later than 60 days after the date of be used to calculate the payment obligation direct majority-owned foreign subsidiary of enactment of this Act. of that defendant participant under this sub- a debtor participant (with such relationship (c) TIER II SUBTIERS.— title. to the debtor participant as determined on (1) IN GENERAL.—Each person or affiliated (C) DEBTORS.—Each debtor’s revenues shall the date of enactment of this Act) is or be- group in Tier II shall be included in 1 of the include the revenues of the debtor and all of comes subject to any foreign insolvency pro- 5 subtiers of Tier II, based on the person’s or the direct or indirect majority-owned sub- ceedings, and such foreign direct or indirect- affiliated group’s revenues. Such subtiers

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shall each contain as close to an equal num- (C) Subtier 3: $200,000. (A) REVENUES.—For purposes of this sub- ber of total persons and affiliated groups as (g) TIER VI SUBTIERS.— section, the revenues of a joint venture shall possible, with— (1) IN GENERAL.—Each person or affiliated be included on a pro rata basis reflecting rel- (A) those persons or affiliated groups with group in Tier VI shall be included in 1 of the ative joint ownership to calculate the reve- the highest revenues included in Subtier 1; 3 subtiers of Tier VI, based on the person’s or nues of the parents of that joint venture. The (B) those persons or affiliated groups with affiliated group’s revenues. Such subtiers joint venture shall not be responsible for a the next highest revenues included in shall each contain as close to an equal num- contribution amount under this subsection. Subtier 2; ber of total persons and affiliated groups as (B) LIABILITY.—For purposes of this sub- (C) those persons or affiliated groups with possible, with those persons or affiliated section, the liability under the Act of April the lowest revenues included in Subtier 5; groups with the highest revenues in Subtier 22, 1908 (45 U.S.C. 51 et seq.), commonly (D) those persons or affiliated groups with 1, those with the lowest revenues in Subtier known as the Employers’ Liability Act, shall the next lowest revenues included in Subtier 3, and those remaining in Subtier 2. be attributed to the parent owners of the 4; and (2) PAYMENT.—Each person or affiliated joint venture on a pro rata basis, reflecting (E) those persons or affiliated groups re- group within each subtier shall pay, on an their relative share of ownership. The joint maining included in Subtier 3. annual basis, the following: venture shall not be responsible for a pay- (2) PAYMENTS.—Each person or affiliated (A) Subtier 1: $500,000. ment amount under this provision. group within each subtier shall pay, on an (B) Subtier 2: $250,000. annual basis, the following: (C) Subtier 3: $100,000. SEC. 204. ASSESSMENT ADMINISTRATION. THER PAYMENT FOR CERTAIN PERSONS (A) Subtier 1: $27,500,000. (3) O (a) IN GENERAL.—Each defendant partici- (B) Subtier 2: $24,750,000. AND AFFILIATED GROUPS.— pant or affiliated group shall pay to the (C) Subtier 3: $22,000,000. (A) IN GENERAL.—Notwithstanding any Fund in the amounts provided under this (D) Subtier 4: $19,250,000. other provision of this subsection, and if an subtitle as appropriate for its tier and adjustment authorized by this subsection (E) Subtier 5: $16,500,000. subtier each year until the earlier to occur (d) TIER III SUBTIERS.— does not impair the overall solvency of the of the following: (1) IN GENERAL.—Each person or affiliated Fund, any person or affiliated group within (1) The participant or affiliated group has group in Tier III shall be included in 1 of the Tier VI whose required subtier payment in satisfied its obligations under this subtitle 5 subtiers of Tier III, based on the person’s or any given year would exceed such person’s or during the 30 annual payment cycles of the affiliated group’s revenues. Such subtiers group’s average annual expenditure on set- operation of the Fund. shall each contain as close to an equal num- tlements, and judgments of asbestos disease- (2) The amount received by the Fund from ber of total persons and affiliated groups as related claims over the 8 years before the possible, with— date of enactment of this Act shall make the defendant participants, excluding any (A) those persons or affiliated groups with payment required of the immediately lower amounts rebated to defendant participants the highest revenues included in Subtier 1; subtier or, if the person’s or group’s average under subsections (e) and (n), equals the (B) those persons or affiliated groups with annual expenditures on settlements and maximum aggregate payment obligation of the next highest revenues included in judgments over the 8 years before the date of section 202(a)(2). Subtier 2; enactment of this Act is less than $100,000, (b) SMALL BUSINESS EXEMPTION.—Notwith- (C) those persons or affiliated groups with shall not be required to make a payment standing any other provision of this subtitle, the lowest revenues included in Subtier 5; under this Act. a person or affiliated group that is a small (D) those persons or affiliated groups with (B) NO FURTHER ADJUSTMENT.—Any person business concern (as defined under section 3 the next lowest revenues included in Subtier or affiliated group that receives an adjust- of the Small Business Act (15 U.S.C. 632)), on 4; and ment under this paragraph shall not be eligi- December 31, 2002, is exempt from any pay- (E) those persons or affiliated groups re- ble to receive any further adjustment under ment requirement under this subtitle and maining included in Subtier 3. section 204(e). shall not be included in the subtier alloca- (2) PAYMENTS.—Each person or affiliated (h) TIER VII.— tions under section 203. group within each subtier shall pay, on an (1) IN GENERAL.—Notwithstanding prior as- IMITATION.—For any affiliated group, annual basis, the following: bestos expenditures that might qualify a per- (c) L (A) Subtier 1: $16,500,000. son or affiliated group to be included in Tiers the total payment in any year, including any (B) Subtier 2: $13,750,000. II, III, IV, V, or VI, a person or affiliated guaranteed pay’ment surcharge under sub- (C) Subtier 3: $11,000,000. group shall also be included in Tier VII, if section (m) and any bankruptcy trust guar- (D) Subtier 4: $8,250,000. the person or affiliated group— antee surcharge under section 222(c), shall (E) Subtier 5: $5,500,000. (A) is or has at any time been subject to not exceed the lesser of $16,702,400 or 1.67024 (e) TIER IV SUBTIERS.— asbestos claims brought under the Act of percent of the revenues of the affiliated (1) IN GENERAL.—Each person or affiliated April 22, 1908 (45 U.S.C. 51 et seq.), commonly group for the most recent fiscal year ending group in Tier IV shall be included in 1 of the known as the Employers’ Liability Act, as a on or prior to December 31, 2002, or for the 4 subtiers of Tier IV, based on the person’s or result of operations as a common carrier by most recent 12-month fiscal year as of the affiliated group’s revenues. Such subtiers railroad; and date the limitation is applied, whichever is shall each contain as close to an equal num- (B) has paid (including any payments made greater. For purposes of this subsection, the ber of total persons and affiliated groups as by others on behalf of such person or affili- term ‘‘affiliated group’’ shall include any de- possible, with those persons or affiliated ated group) not less than $5,000,000 in settle- fendant participant that is an ultimate par- groups with the highest revenues in Subtier ment, judgment, defense, or indemnity costs ent. The limitation in this subsection shall 1, those with the lowest revenues in Subtier relating to such claims, and such settlement, not apply to defendant participants in Tier I 4. Those persons or affiliated groups with the judgment, defense, or indemnity costs con- or to any affiliated group whose revenues for highest revenues among those remaining will stitute 75 percent or more of the total prior the most recent fiscal year ending on or be included in Subtier 2 and the rest in asbestos expenditures by the person or affili- prior to December 31, 2002, or for the most re- Subtier 3. ated group. cent 12-month fiscal year as of the date the (2) PAYMENT.—Each person or affiliated (2) ADDITIONAL AMOUNT.—The payment re- limitation applied, whichever is greater, ex- group within each subtier shall pay, on an quirement for persons or affiliated groups in- ceeds $1,000,000,000. The revenues of the affili- annual basis, the following: cluded in Tier VII shall be in addition to any ated group shall be determined in accordance (A) Subtier 1: $3,850,000. payment requirement applicable to such per- with section 203(a)(2), except for the applica- (B) Subtier 2: $2,475,000. son or affiliated group under Tiers II through ble date. An affiliated group that claims a (C) Subtier 3: $1,650,000. VI. reduction in its payment in any year shall (D) Subtier 4: $550,000. (3) SUBTIER 1.—Each person or affiliated file with the Administrator, in accordance (f) TIER V SUBTIERS.— group in Tier VII with revenues of with procedures prescribed by the Adminis- (1) IN GENERAL.—Each person or affiliated $6,000,000,000 or more is included in Subtier 1 trator, sufficient infonnation to allow the group in Tier V shall be included in 1 of the and shall make annual payments of Administrator to determine the amount of 3 subtiers of Tier V, based on the person’s or $11,000,000 to the Fund. any such reduction in that year. If as a re- affiliated group’s revenues. Such subtiers (4) SUBTIER 2.—Each person or affiliated sult of the application of the limitation pro- shall each contain as close to an equal num- group in Tier VII with revenues of less than vided in this subsection an affiliated group is ber of total persons and affiliated groups as $6,000,000,000, but not less than $4,000,000,000 exempt from paying all or part of a guaran- possible, with those persons or affiliated is included in Subtier 2 and shall make an- teed payment surcharge or bankruptcy trust groups with the highest revenues in Subtier nual payments of $5,500,000 to the Fund. surcharge, then the reduction in the affili- 1, those with the lowest revenues in Subtier (5) SUBTIER 3.—Each person or affiliated ated group’s payment obligation due to the 3, and those remaining in Subtier 2. group in Tier VII with revenues of less than limitation in this subsection shall be redis- (2) PAYMENT.—Each person or affiliated $4,000,000,000, but not less than $500,000,000 is tributed in accordance with subsection (m). group within each subtier shall pay, on an included in Subtier 3 and shall make annual Nothing in this subsection shall be construed annual basis, the following: payments of $550,000 to the Fund. as reducing the minimum aggregate annual (A) Subtier 1: $1,000,000. (6) JOINT VENTURE REVENUES AND LIABIL- payment obligation of defendant partici- (B) Subtier 2: $500,000. ITY.— pants as provided in section 204(i)(1).’’

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(d) PROCEDURES.—The Administrator shall (7) any other factor that the Administrator that not less than 95 percent of such person’s prescribe procedures on how amounts pay- considers relevant. prior asbestos expenditures arose from able under this subtitle are to be paid, in- (B) TERM.—A financial hardship adjust- claims related to the manufacture and sale cluding, to the extent the Administrator de- ment under this paragraph shall have a term of railroad locomotives and related products, termines appropriate, procedures relating to of 5 years unless the Administrator deter- so long as such person’s manufacture and payment in installments. mines at the time the adjustment is made sale of railroad locomotives and related (e) ADJUSTMENTS.— that a shorter or longer period is appropriate products is temporally and causally remote, (1) IN GENERAL.—Under expedited proce- in the light of the financial condition of the and for purposes of this clause, a person’s dures established by the Administrator, a de- defendant participant and its affiliated manufacture and sale of railroad loco- fendant participant may seek adjustment of group and other relevant factors, provided motives and related products shall be the amount of its payment obligation based that a financial hardship adjustment under deemed to be temporally and causally re- on severe financial hardship or demonstrated this paragraph shall terminate automati- mote if the asbestos claims historically and inequity. The Administrator may determine cally in the event that the defendant partici- generally filed against such person relate to whether to grant an adjustment and the size pant holding the adjustment files a petition the manufacture and sale of railroad loco- of any such adjustment, in accordance with under title 11, United States Code. motives and related products by an entity (C) RENEWAL.—A defendant participant this subsection. A defendant participant has dissolved more than 25 years before the date may renew a hardship adjustment upon expi- a right to obtain a rehearing of the Adminis- of enactment of this Act; trator’s determination under this subsection ration by demonstrating that it remains jus- (iii) shall be granted a two-tier adjustment under the procedures prescribed in sub- tified. Such renewed hardship adjustments reducing the defendant participant’s pay- section (j)(10). The Administrator may adjust shall have a term of 5 years unless the Ad- ment obligation based on inequity by dem- a defendant participant’s payment obliga- ministrator determines at the time of the re- onstrating that not less than 95 percent of tions under this subsection, either by for- newed adjustment that a shorter or longer such participant’s prior asbestos expendi- giving the relevant portion of the otherwise period is appropriate in the light of the fi- tures arose from asbestos claims based on applicable payment obligation or by pro- nancial condition of the defendant partici- successor liability arising from a merger to viding relevant rebates from the defendant pant and its affiliated group and other rel- which the participant or its predecessor was hardship and inequity adjustment account evant factors, provided that a renewed finan- a party that occurred at least 30 years before created under subsection (k) after payment cial hardship adjustment under this para- the date of enactment of this Act, and that of the otherwise applicable payment obliga- graph shall terminate automatically in the such prior asbestos expenditures exceed the tion, at the discretion of the Administrator. event that the defendant participant holding inflation-adjusted value of the assets of the (2) FINANCIAL HARDSHIP ADJUSTMENTS.— the adjustment files a petition under title 11, company from which such liability was de- (A) IN GENERAL.—Any defendant partici- United States Code. pant in any tier may apply for an adjust- (D) PROCEDURE.— rived in such merger, and upon such dem- ment under this paragraph at any time dur- (1) The Administrator shall prescribe the onstration the Administrator shall grant ing the period in which a payment obligation information to be submitted in applications such adjustment for the life of the Fund and to the Fund remains outstanding and may for adjustments under this paragraph. amounts paid by such defendant participant qualify for such an adjustment by dem- (2) All audited financial information re- prior to such adjustment in excess of its ad- onstrating to the satisfaction of the Admin- quired under this paragraph shall be as re- justed payment obligation under this clause istrator that the amount of its payment obli- ported by the defendant participant in its shall be credited against next succeeding re- gation would materially and adversely affect annual report filed with the Securities and quired payment obligations; and the defendant participant’s ability to con- Exchange Commission in accordance with (iv) may, subject to the discretion of the tinue its business and to pay or satisfy its the Securities Exchange Act of 1934 (15 Administrator, be exempt from any payment debts generally as and when they come due. U.S.C. 78a et seq.). Any defendant partici- obligation if such defendant participant es- Such an adjustment shall be in an amount pant that does not file reports with the Secu- tablishes with the Administrator that— that in the judgment of the Administrator is rities and Exchange Commission or which (I) such participant has satisfied all past reasonably necessary to prevent such mate- does not have audited financial statements claims; and rial and adverse effect on the defendant par- shall submit financial statements prepared (II) there is no reasonable likelihood in the ticipant’s ability to continue its business pursuant to generally accepted accounting absence of this Act of any future claims with and to pay or satisfy its debts generally as principles. The chairman, chief executive of- costs for which the defendant participant and when they come due. ficer, and chief financial officer of the de- might be responsible. (B) FACTORS TO CONSIDER.—In determining fendant participant shall certify under pen- (B) PAYMENT RATE.—For purposes of sub- whether to make an adjustment under sub- alty of law the completeness and accuracy of paragraph (A), the payment rate of a defend- paragraph (A) and the amount thereof, the the financial statements provided under this ant participant is the payment amount of Administrator shall consider— sub-paragraph. the defendant participant as a percentage of (1) the financial situation of the defendant (3) The chairman, chief executive officer, such defendant participant’s gross revenues participant and its affiliated group as shown and chief financial officer of the defendant for the year ending December 31, 2002. in historical audited financial statements, participant shall certify that any projected (C) TERM.—Subject to the annual avail- including income statement, balance sheet, information and analyses submitted to the ability of funds in the defendant inequity ad- and statement of cash flow, for the three fis- Administrator were made in good faith and justment account established under sub- cal years ending immediately prior to the are reasonable and attainable. section (k), an inequity adjustment under application and projected financial state- (3) INEQUITY ADJUSTMENTS.— this subsection shall have a term of 3 years. ments for the three fiscal years following the (A) IN GENERAL.—A defendant participant— (D) RENEWAL.—A defendant participant application; (i) may qualify for an adjustment based on may renew an inequity adjustment every 3 (2) an analysis of capital spending and inequity by demonstrating that the amount years by demonstrating that the adjustment fixed charge coverage on a historical basis of its payment obligation under the statu- remains justified. for the three fiscal years immediately pre- tory allocation is exceptionally inequi- (E) REINSTATEMENT.— ceding a defendant participant’s application table— (i) IN GENERAL.—Following the termination and for the three fiscal years following the (I) when measured against the amount of of an inequity adjustment under subpara- application; the likely cost to the defendant participant graph (A), and during the funding period pre- (3) any payments or transfers of property net of insurance of its future liability in the scribed under subsection (a), the Adminis- made, or obligations incurred, within the tort system in the absence of the Fund; trator shall annually determine whether preceding 6 years by the defendant partici- (II) when measured against the likely cost there has been a material change in condi- pant to or for the benefit of any insider as of past and potential future claims in the ab- tions which would support a finding that the defined under section 101 (31) of title 11 of the sence of this Act; amount of the defendant participant’s pay- United States Code or any affiliate as de- (III) when compared to the median pay- ment under the statutory allocation was not fined under section 101(2) of title 11 of the United States Code; ment rate for all defendant participants in inequitable. Based on this determination, (4) any prior extraordinary transactions the same tier; or the Administrator may, consistent with the within the preceding 6 years involving the (IV) when measured against the percentage policies and legislative intent underlying defendant participant, including without of the prior asbestos expenditures of the de- this Act, reinstate any or all of the payment limitation payments of extraordinary sala- fendant that were incurred with respect to obligations of the defendant participant as if ries, bonuses, or dividends; claims that neither resulted in an adverse the inequity adjustment had not been grant- (5) the defendant participant’s ability to judgment against the defendant, nor were ed for that 3-year period. satisfy its payment obligations to the Fund the subject of a settlement that required a (ii) TERMS AND CONDITIONS.—In the event of by borrowing or financing with equity cap- payment to a plaintiff by or on behalf of that a reinstatement under clause (i), the Admin- ital, or through issuance of securities of the defendant; istrator may require the defendant partici- defendant participant or its affiliated group (ii) shall be granted a two-tier main tier pant to pay any part or all of amounts not to the Fund; and a two-tier subtier adjustment reducing paid due to the inequity adjustment on such (6) the defendant participant’s ability to the defendant participant’s payment obliga- terms and conditions as established by the delay discretionary capital spending; and tion based on inequity by demonstrating Administrator.

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(4) LIMITATION ON ADJUSTMENTS.—The ag- (3) CAUSE OF ACTION.—Notwithstanding sec- (A) IN GENERAL.—Not later than 90 days gregate total of inequity adjustments under tion 221(e), this Act shall not preclude ac- after enactment of this Act, each defendant paragraph (3) in effect in any given year tions among persons within an affiliated participant that is included in Tiers II, III, shall not exceed $300,000,000, except to the ex- group with respect to the payment obliga- IV, V, or VI shall file with the Adminis- tent that additional monies are available for tions under this Act. trator— such adjustments as a result of carryover of (h) DETERMINATION OF PRIOR ASBESTOS EX- (i) a statement of whether the defendant prior years’ funds under subsection (k)(3) or PENDITURES.— participant irrevocably elects to report on a as a result of monies being made available in (1) IN GENERAL.—For purposes of deter- consolidated basis under subsection (g); that year under subsection (l)(1)(A). mining a defendant participant’s prior asbes- (ii) a good-faith estimate of its prior asbes- (B) the Administrator determines that the tos expenditures, the Administrator shall tos expenditures; $300,000,000 is insufficient and additional ad- prescribe such rules as may be necessary or (iii) a statement of its 2002 revenues, deter- justments as provided under paragraph (5) appropriate to assure that payments by mined in accordance with section 203(a)(2); are needed to address situations in which a indemnitors before December 31, 2002, shall (iv) payment in the amount specified in defendant participant would otherwise be be counted as part of the indemnitor’s prior section 203 for the lowest subtier of the tier rendered insolvent by its payment obliga- asbestos expenditures, rather than the within which the defendant participant falls, tions without such adjustment. indemnitee’s prior asbestos expenditures, in except that if the defendant participant, or (6) RULEMAKING AND ADVISORY PANELS.— accordance with this subsection. the affiliated group including the defendant (A) APPOINTMENT.—The Administrator may (2) INDEMNIFIABLE COSTS.—If an indemnitor participant, had 2002 revenues exceeding appoint a Financial Hardship Adjustment has paid or reimbursed to an indemnitee any $3,000,000,000, it or its affiliated group shall Panel and an Inequity Adjustment Panel to indemnifiable cost or otherwise made a pay- pay the amount specified for Subtier 3 of advise the Administrator in carrying out ment on behalf of or for the benefit of an Tiers II, III, or IV or Subtier 2 of Tiers V or this subsection. indemnitee to a third party for an VI, depending on the applicable Tier; and (B) MEMBERSHIP.—The membership of the indemnifiable cost before December 31, 2002, (v) a signature page personally verifying panels appointed under subparagraph (A) the amount of such indemnifiable cost shall the truth of the statements and estimates may overlap. be solely for the account of the indemnitor described under this subparagraph, as re- (C) COORDINATION.—The panels appointed for purposes under this Act. quired under section 404 of the Sarbanes- under subparagraph (A) shall coordinate (3) INSURANCE PAYMENTS.—When computing Oxley Act of 2002 (15 U.S.C. 7201 et seq.). their deliberations and advice. The Adminis- the prior asbestos expenditures with respect (B) RELIEF.— trator may adopt rules consistent with this to an asbestos claim, any amount paid or re- (i) IN GENERAL.—The Administrator shall Act to make the determination of hardship imbursed by insurance shall be solely for the establish procedures to grant a defendant and inequity adjustments more efficient and account of the indemnitor, even if the participant relief from its initial payment predictable. indemnitor would have no direct right to the obligation if the participant shows that— (f) LIMITATION ON LIABILITY.—The liability benefit of the insurance, if— (I) the participant is likely to qualify for a of each defendant participant to pay to the (A) such insurance has been paid or reim- financial hardship adjustment; and Fund shall be limited to the payment obliga- bursed to the indemnitor or the indemnitee, (II) failure to provide interim relief would tions under this Act, and, except as provided or paid on behalf of or for the benefit of the cause severe irreparable harm. in subsection (f) and section 203(b)(2)(D), no indemnitee; and (ii) JUDICIAL RELIEF.—The Administrator’s defendant participant shall have any liabil- (B) the indemnitor has either, with respect refusal to grant relief under clause (i) is sub- ity for the payment obligations of any other to such asbestos claim or any similar asbes- ject to immediate judicial review under sec- defendant participant. tos claim, paid or reimbursed to its tion 303. (g) CONSOLIDATION OF PAYMENTS.— indemnitee any indemnifiable cost or paid to (2) INITIAL YEAR: TIER I.—Not later than 60 (1) IN GENERAL.—For purposes of deter- any third party on behalf of or for the ben- days after enactment of this Act, each debt- mining the payment levels of defendant par- efit of the indemnitee any indemnifiable or shall file with the Administrator— ticipants, any affiliated group including 1 or cost. (A) a statement identifying the bank- more defendant participants may irrev- (4) TREATMENT OF CERTAIN EXPENDITURES.— ruptcy case(s) associated with the debtor; ocably elect, as part of the submissions to be Notwithstanding any other provision of this (B) a statement whether its prior asbestos made under paragraphs (1) and (3) of sub- Act, where— expenditures exceed $1,000,000; section (j), to report on a consolidated basis (A) an indemnitor entered into a stock pur- (C) a statement whether it has material all of the information necessary to deter- chase agreement in 1988 that involved the continuing business operations and, if not, mine the payment level under this subtitle sale of the stock of businesses that produced whether it holds cash or other assets that and pay to the Fund on a consolidated basis. friction and other products; and have been allocated or earmarked for asbes- (2) ELECTION.—If an affiliated group elects (B) the stock purchase agreement provided tos settlements; consolidation as provided in this sub- that the indemnitor indemnified the (D) in the case of debtors falling within section— indemnitee and its affiliates for losses aris- Subtier 1 of Tier I— (A) for purposes of this Act other than this ing from various matters, including asbestos (i) a statement of the debtor’s 2002 reve- subsection, the affiliated group shall be claims— nues, determined in accordance with section treated as if it were a single participant, in- (i) asserted before the date of the agree- 203(a)(2); cluding with respect to the assessment of a ment; and (ii) for those debtors subject to the pay- single annual payment under this subtitle (ii) filed after the date of the agreement ment requirement of section 203(b)(2)(B)(ii), for the entire affiliated group; and prior to the 10-year anniversary of the a statement whether its prior asbestos ex- (B) the ultimate parent of the affiliated stock sale, penditures do not exceed $10,000,000, and a de- group shall prepare and submit each submis- then the prior asbestos expenditures arising scription of its business operations sufficient sion to be made under subsection (i) on be- from the asbestos claims described in clauses to show the requirements of that section are half of the entire affiliated group and shall (i) and (ii) shall not be for the account of ei- met; and be solely liable, as between the Adminis- ther the indemnitor or indemnitee. (iii) a payment under section 203(b)(2)(B); trator and the affiliated group only, for the (i) MINIMUM ANNUAL PAYMENTS.— (E) in the case of debtors falling within payment of the annual amount due from the (1) IN GENERAL.—The aggregate annual Subtier 2 of Tier I, an assignment of its as- affiliated group under this subtitle, except payments of defendant participants to the sets under section 203(b)(3)(B); that, if the ultimate parent does not pay Fund shall be at least $3,000,000,000 for each (F) in the case of debtors falling within when due any payment obligation for the af- calendar year in the first 30 years of the Subtier 3 of Tier I, a payment under section filiated group, the Administrator shall have Fund, or until such shorter time as the con- 203(b)(4)(B), and a statement of how such the right to seek payment of all or any por- dition set forth in subsection (a)(2) is at- payment was calculated; and tion of the entire amount due (as well as any tained. (G) a signature page personally verifying other amount for which the affiliated group (2) GUARANTEED PAYMENT ACCOUNT.—To the the truth of the statements and estimates may be liable under sections 223 and 224) extent payments in accordance with sections described under this paragraph, as required from any member of the affiliated group; 202 and 203 (as modified by subsections (b), under section 404 of the Sarbanes-Oxley Act (C) all members of the affiliated group (e), (g), (h), and (n) of this section) fail in any of 2002 (15 U.S.C. 7201 et seq.). shall be identified in the submission under year to raise at least $3,000,000,000, after ap- (3) INITIAL YEAR: TIER VII.—Not later than subsection (j) and shall certify compliance plicable reductions or adjustments have been 90 days after enactment of this Act, each de- with this subsection and the Administrator’s taken according to subsections (e) and (n), fendant participant in Tier VII shall file regulations implementing this subsection; the balance needed to meet this required with the Administrator— and minimum aggregate annual payment shall (A) a good-faith estimate of all payments (D) the obligations under this subtitle be obtained from the defendant guaranteed of the type described in section 203(h)(1) (as shall not change even if, after the date of en- payment account established under sub- modified by section 203(h)(6)); actment of this Act, the beneficial ownership section (k). (B) a statement of revenues calculated in interest between any members of the affili- (j) PROCEDURES FOR MAKING PAYMENTS.— accordance with sections 203(a)(2) and 203(h); ated group shall change. (1) INITIAL YEAR: TIERS II–VI.— and

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(C) payment in the amount specified in the notice, after deducting any previous pay- (2) USE OF ACCOUNT MONIES.—Monies from section 203(h). ment made by the participant under this the defendant inequity adjustment account (4) NOTICE TO PARTICIPANTS.—Not later subsection. If the amount that the defendant shall be preserved and administered like the than 240 days after enactment of this Act, participant is required to pay is less than remainder of the Fund, but shall be reserved the Administrator shall— any previous payment made by the partici- and may be used only— (A) directly notify all reasonably identifi- pant under this subsection, the Adminis- (A) to make up for any relief granted to a able defendant participants of the require- trator shall credit any excess payment defendant participant for demonstrated in- ment to submit information necessary to against the future payment obligations of equity under subsection (d) or to reimburse calculate the amount of any required pay- that defendant participant. The pendency of any defendant participant granted such re- ment to the Fund; and a petition for rehearing under paragraph (10) lief after its payment of the amount other- (B) publish in the Federal Register a no- shall not stay the obligation of the partici- wise due; and tice— pant to make the payment specified in the (B) if the condition set forth in subsection (i) setting forth the criteria in this Act, Administrator’s notice. (a)(2) is met, for any purpose that the Fund and as prescribed by the Administrator in (7) EXEMPTIONS FOR INFORMATION RE- may serve under this Act. accordance with this Act, for paying under QUIRED.— (3) CARRYOVER OF UNUSED FUNDS.—To the this subtitle as a defendant participant and (A) PRIOR ASBESTOS EXPENDITURES.—In lieu extent the Administrator does not, in any requiring any person who may be a defend- of submitting information related to prior given year, use all of the funds allocated to ant participant to submit such information; asbestos expenditures as may be required for the account under paragraph (1) for adjust- and purposes of this subtitle, a non-debtor de- ments granted under subsection (e), remain- (ii) that includes a list of all defendant par- fendant participant may consent to be as- ing funds in the account shall be carried for- ticipants notified by the Administrator signed to Tier II. ward for use by the Administrator for adjust- under subparagraph (A), and provides for 30 (B) REVENUES.—In lieu of submitting infor- ments in subsequent years. days for the submission by the public of com- mation related to revenues as may be re- (l) DEFENDANT GUARANTEED PAYMENT AC- ments or information regarding the com- quired for purposes of this subtitle, a non- COUNT.— pleteness and accuracy of the list of identi- debtor defendant participant may consent to (1) IN GENERAL.—Subject to subsections (i) fied defendant participants. be assigned to Subtier 1 of the defendant par- and (k), if there are excess monies paid by (5) RESPONSE REQUIRED.— ticipant’s applicable tier. defendant participants in any given year, in- cluding any bankruptcy trust credits that (A) IN GENERAL.—Any person who receives (8) NEW INFORMATION.— may be due under section 222(d), such mon- notice under paragraph (4)(A), and any other (A) EXISTING PARTICIPANT.—The Adminis- ies— person meeting the criteria specified in the trator shall adopt procedures for requiring (A) at the discretion of the Administrator, notice published under paragraph (4)(B), additional payment, or refunding amounts may be used to provide additional adjust- shall provide the Administrator with an ad- already paid, based on new information re- ments under subsection (e), up to a max- dress to send any notice from the Adminis- ceived. trator in accordance with this Act and all imum aggregate of $50,000,000 in such year; (B) ADDITIONAL PARTICIPANT.—If the Ad- and the information required by the Adminis- ministrator, at any time, receives informa- (B) to the extent not used under subpara- trator in accordance with this subsection no tion that an additional person may qualify later than the earlier of— graph (A), shall be placed in a defendant as a defendant participant, the Adminis- (i) 30 days after the receipt of direct notice; guaranteed payment account established trator shall require such person to submit or within the Fund by the Administrator. information necessary to determine whether (ii) 30 days after the publication of notice (2) USE OF ACCOUNT MONIES.—Monies from that person is required to make payments, in the Federal Register. the defendant guaranteed payment account and in what amount, under this subtitle and (B) CERTIFICATION.—The response sub- shall be preserved and administered like the shall make any determination or take any mitted under subparagraph (A) shall be remainder of the Fund, but shall be reserved other act consistent with this Act based on signed by a responsible corporate officer, and may be used only— such information or any other information general partner, proprietor, or individual of (A) to ensure the minimum aggregate an- similar authority, who shall certify under available to the Administrator with respect nual payment required under subsection (i), penalty of law the completeness and accu- to such person. after applicable reductions or adjustments racy of the information submitted. (9) SUBPOENAS.—The Administrator may have been taken according to subsections (e) request the Attorney General to subpoena (C) CONSENT TO AUDIT AUTHORITY.—The re- and (m) is reached each year; and sponse submitted under subparagraph (A) persons to compel testimony, records, and (B) if the condition set forth in subsection shall include, on behalf of the defendant par- other information relevant to its responsibil- (a)(2) is met, for any purpose that the Fund ticipant or affiliated group, a consent to the ities under this section. The Attorney Gen- may serve under this Act. Administrator’s audit authority under sec- eral may enforce such subpoena in appro- (n) ADJUSTMENTS FOR DISTRIBUTORS.— tion 221(d). priate proceedings in the United States dis- (1) DEFINITION.—In this subsection, the (6) NOTICE OF INITIAL DETERMINATION.— trict court for the district in which the per- term ‘‘distributor’’ means a person— (A) IN GENERAL.— son to whom the subpoena was addressed re- (A) whose prior asbestos expenditures arise (i) NOTICE TO INDIVIDUAL.—Not later than sides, was served, or transacts business. exclusively from the sale of products manu- 60 days after receiving a response under (10) REHEARING.—A defendant participant factured by others; paragraph (5), the Administrator shall send has a right to obtain rehearing of the Admin- (B) who did not prior to December 31, 2002, the person a notice of initial determination istrator’s determination under this sub- sell raw asbestos or a product containing identifying the tier and subtier, if any, into section of the applicable tier or subtier of more than 95 percent asbestos by weight; which the person falls and the annual pay- the Administrator’s determination under (C) whose prior asbestos expenditures did ment obligation, if any, to the Fund, which subsection (e) of a financial hardship or in- not arise out of— determination shall be based on the informa- equity adjustment, and of the Administra- (i) the manufacture, installation, repair, tion received from the person under this sub- tor’s determination under subsection (n) of a reconditioning, maintaining, servicing, con- section and any other pertinent information distributor’s adjustment, if the request for structing, or remanufacturing of any prod- available to the Administrator and identified rehearing is filed within 30 days after the de- uct; to the defendant participant. fendant participant’s receipt of notice from (ii) the control of the design, specification, (ii) PUBLIC NOTICE.—Not later than 7 days the Administrator of the determination. A or manufacture of any product; or after sending the notification of initial de- defendant participant may not file an action (iii) the sale or resale of any product termination to defendant participants, the under section 303 unless the defendant par- under, as part of, or under the auspices of, its Administrator shall publish in the Federal ticipant requests a rehearing under this own brand, trademark, or service mark; and Register a notice listing the defendant par- paragraph. The Administrator shall publish (D) who is not subject to assignment under ticipants that have been sent such notifica- a notice in the Federal Register of any section 202 to Tier I, II, III or VII. tion, and the initial determination identi- change in a defendant participant’s tier or (2) TIER REASSIGNMENT FOR DISTRIBUTORS.— fying the tier and subtier assignment and an- subtier assignment or payment obligation as (A) IN GENERAL.—Notwithstanding section nual payment obligation of each identified a result of a rehearing. 202, the Administrator shall assign a dis- participant. (k) DEFENDANT INEQUITY ADJUSTMENT AC- tributor to a Tier for purposes of this title (B) NO RESPONSE; INCOMPLETE RESPONSE.— COUNT.— under the procedures set forth in this para- If no response in accordance with paragraph (1) IN GENERAL.—To the extent the total graph. (5) is received from a defendant participant, payments by defendant participants in any (B) DESIGNATION.—After a final determina- or if the response is incomplete, the initial given year exceed the minimum aggregate tion by the Administrator under section determination shall be based on the best in- annual payments required under subsection 204(j), any person who is, or any affiliated formation available to the Administrator. (i), excess monies up to a maximum of group in which every member is, a dis- (C) PAYMENTS.—Within 30 days of receiving $300,000,000 in any such year shall be placed tributor may apply to the Administrator for a notice of initial determination requiring in a defendant inequity adjustment account adjustment of its Tier assignment under this payment, the defendant participant shall pay established within the Fund by the Adminis- subsection. Such application shall be pre- the Administrator the amount required by trator. pared in accordance with such procedures as

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00157 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1292 CONGRESSIONAL RECORD — SENATE February 14, 2006 the Administrator shall promulgate by rule. ipant has already received due to the appli- or waiver under this section may cause the Once the Administrator designates a person cation of the limitation provided in section assets of the Fund and expected future pay- or affiliated group as a distributor under this 204(c) and the financial hardship adjustment ments to decrease to a level at which the subsection, such designation and the adjust- provided under section 204(e)(2). If the reduc- Fund may not be able to satisfy all of its an- ment of tier assignment under this sub- tion in the defendant participant’s payment ticipated obligations, the Administrator section are final. obligation due to the limitation provided in shall revoke all or any part of such reduction (C) PAYMENTS.—Any person or affiliated section 204(c) and any the financial hardship or waiver to the extent necessary to ensure group that seeks adjustment of its Tier as- adjustment provided under section 204(e)(2) that the Fund’s obligations are met. Such signment under this subsection shall pay all exceeds the amount of the reduction pro- revocations shall be applied on an equal pro amounts required of it under this title until vided in this subsection, then the defendant rata basis to the funding obligations of all a final determination by the Administrator participant’s payment obligation shall not defendant participants, except defendant is made under this subsection. Such pay- be further reduced under this paragraph. participants in Subtiers 2 and 3 of Tier I and ments may not be stayed pending any ap- (2) LIMITATION.—The Administrator shall class action trusts, for that year. suspend, cancel, reduce, or delay any reduc- peal. The Administrator shall grant any per- (c) CERTIFICATION.— tion under paragraph (1) if at any time the son or affiliated group a refund or credit of (1) IN GENERAL.—Before suspending, can- Administrator finds, in accordance with sub- any payments made if such adjustment re- celing, reducing, or delaying any reduction section (c), that such action is necessary and sults in a lower payment obligation. under subsection (a) or granting or revoking appropriate to ensure that the assets of the (D) ADJUSTMENT.—Subject to paragraph a reduction or waiver under subsection (b), Fund and expected future payments remain (3), any person or affiliated group that the the Administrator shall certify that the re- sufficient to satisfy the Fund’s anticipated Administrator has designated as a dis- quirements of this section are satisfied. obligations. tributor under this subsection shall be given OTICE AND COMMENT (b) FUNDING HOLIDAYS.— (2) N .—Before making a an adjustment of Tier assignment as follows: (1) IN GENERAL.—If the Administrator de- final certification under this subsection, the (i) A distributor that but for this sub- termines, at any time after 10 years fol- Administrator shall publish a notice in the section would be assigned to Tier IV shall be lowing the date of enactment of this Act, Federal Register of a proposed certification deemed assigned to Tier V. that the assets of the Fund at the time of and a statement of the basis therefor and (ii) A distributor that but for this sub- such determination and expected future pay- provide in such notice for a public comment section would be assigned to Tier V shall be ments, taking into consideration any reduc- period of 30 days. deemed assigned to Tier VI. tions under subsection (a), are sufficient to (3) FINAL CERTIFICATION.— (iii) A distributor that but for this sub- satisfy the Fund’s anticipated obligations (A) IN GENERAL.—The Administrator shall section would be assigned to Tier VI shall be without the need for all, or any portion of, publish a notice of the final certification in deemed assigned to no Tier and shall have no that year’s payment otherwise required the Federal Register after consideration of obligation to make any payment to the Fund under this subtitle, the Administrator shall all comments submitted under paragraph (2). under this Act. reduce or waive all or any part of the pay- (B) WRITTEN NOTICE.—Not later than 30 (E) EXCLUSIVE TO INEQUITY ADJUSTMENT.— ments required from defendant participants days after publishing any final certification Any person or affiliated group designated by for that year. under subparagraph (A), the Administrator the Administrator as a distributor under this (2) ANNUAL REVIEW.—The Administrator shall provide each defendant participant subsection shall not be eligible for an in- shall undertake the review required by this with written notice of that defendant’s fund- equity adjustment under subsection 204(e). subsection and make the necessary deter- ing obligation for that year. (3) LIMITATION ON ADJUSTMENTS.—The ag- mination under paragraph (1) every year. SEC. 206. ACCOUNTING TREATMENT. gregate total of distributor adjustments (3) LIMITATIONS ON FUNDING HOLIDAYS.— Defendant participants payment obliga- under this subsection in effect in any given Any reduction or waiver of the defendant year shall not exceed $50,000,000. If the aggre- tions to the Fund shall be subject to dis- participants’ funding obligations shall— counting under the applicable accounting gate total of distributors adjustments under (A) be made only to the extent the Admin- this subsection would otherwise exceed guidelines for generally accepted accounting istrator determines that the Fund will still purposes and statutory accounting purposes $50,000,000, then each distributor’s adjust- be able to satisfy all of its anticipated obli- ment shall be reduced pro rata until the ag- for each defendant participant. This section gations; and shall in no way reduce the amount of mone- gregate of all adjustments equals $50,000,000. (B) be applied on an equal pro rata basis to (4) REHEARING.—A defendant participant tary payments to the Fund by defendant par- the funding obligations of all defendant par- ticipants as required under section 202(a)(2). has a right to obtain a rehearing of the Ad- ticipants, except as otherwise provided under ministrator’s determination on an adjust- this paragraph. The reductions or waivers Subtitle B—Asbestos Insurers Commission ment under this subsection under the proce- provided under this subsection shall not SEC. 210. DEFINITION. dures prescribed in subsection (j)(10). apply to defendant participants in Tier I, In this subtitle, the term ‘‘captive insur- SEC. 205. STEPDOWNS AND FUNDING HOLIDAYS. subtiers 2 and 3, and class action trusts. For ance company’’ means a company— (a) STEPDOWNS.— defendant participants whose payment obli- (1) whose entire beneficial interest is (1) IN GENERAL.—Subject to paragraph (2), gation has been limited under section 204(c0 owned on the date of enactment of this Act, the minimum aggregate annual funding obli- or who have received a financial hardship ad- directly or indirectly, by a defendant partici- gation under section 204(i) shall be reduced justment under section 204(e)(2), aggregate pant or by the ultimate parent or the affili- by 10 percent of the initial minimum aggre- potential reductions or waivers under this ated group of a defendant participant; gate funding obligation at the end of the subsection shall be calculated on the basis of (2) whose primary commercial business tenth, fifteenth, twentieth, and twenty-fifth the defendant participant’s tier and subtier during the period from calendar years 1940 years after the date of enactment of this without regard to such limitation or adjust- through 1986 was to provide insurance to its Act. Except as otherwise provided in this ment. If the aggregate potential reductions ultimate parent or affiliated group, or any paragraph, the reductions under this para- or waivers under this subsection exceed the portion of the affiliated group or a combina- graph shall be applied on an equal pro rata reduction in the defendant participant’s pay- tion thereof; and basis to the funding obligations of all defend- ment obligation due to the limitation under (3) that was incorporated or operating no ant participants. section 204(c) and the financial hardship ad- later than December 31, 2003. The reductions under this subsection shall justment under section 204(e)(2), then the de- not apply to defendant participants in Tier I, fendant participant’s payment obligation SEC. 211. ESTABLISHMENT OF ASBESTOS INSUR- subtiers 2 and 3, and class action trusts. For shall be further reduced by the difference be- ERS COMMISSION. defendant participants whose payment obli- tween the potential reductions or waivers (a) ESTABLISHMENT.—There is established gation has been limited under section 204(c) provided under this subsection and the re- the Asbestos Insurers Commission (referred or who have received a financial hardship ad- ductions that the defendant participant has to in this subtitle as the ‘‘Commission’’) to justment under section 204(e)(2), aggregate already received due to the application of carry out the duties described in section 212. potential reductions under this subsection the limitation provided in section 204(c) and (b) MEMBERSHIP.— shall be calculated on the basis of the de- the financial hardship adjustment provided (1) APPOINTMENT.—The Commission shall fendant participant’s tier and subtier with- under section 204(e)(2). If the reduction in be composed of 5 members who shall be ap- out regard to such limitation or adjustment. the defendant participant’s payment obliga- pointed by the President, by and with the ad- If the aggregate potential reduction under tion due to the limitation provided in sec- vice and consent of the Senate. this subsection exceeds the reduction in the tion 204(c) and any the financial hardship ad- (2) QUALIFICATIONS.— defendant participant’s payment obligation justment provided under section 204(e)(2) ex- (A) EXPERTISE.—Members of the Commis- due to the limitation under section 204(c) ceeds the amount of the reductions or waiv- sion shall have sufficient expertise to fulfill and the financial hardship adjustment under ers provided in this subsection, then the de- their responsibilities under this subtitle. section 204(e)(2), then the defendant partici- fendant participant’s payment obligation (B) CONFLICT OF INTEREST.— pant’s payment obligations shall be further shall not be further reduced under this para- (i) IN GENERAL.—No member of the Com- reduced by the difference between the poten- graph. mission appointed under paragraph (1) may tial reduction provided under this subsection (4) NEW INFORMATION.—If at any time the be an employee or immediate family member and the reductions that the defendant partic- Administrator determines that a reduction of an employee of an insurer participant. No

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00158 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1293 member of the Commission shall be a share- Securities and Exchange Commission or any ards required for United States licensed di- holder of any insurer participant. No mem- State regulatory agency. Under this proce- rect insurers. ber of the Commission shall be a former offi- dure, not later than 120 days after the initial (C) CAPTIVE INSURANCE COMPANIES.—No cer or director, or a former employee or meeting of the Commission, the Commission payment to the Fund shall be required from former shareholder of any insurer partici- shall commence a rulemaking proceeding a captive insurance company, unless and pant who was such an employee, shareholder, under section 213(a) to propose and adopt a only to the extent a captive insurance com- officer, or director at any time during the 2- methodology for allocating payments among pany, on the date of enactment of this Act, year period ending on the date of the ap- insurer participants. In proposing an alloca- insures the asbestos liability, directly or in- pointment, unless that is fully disclosed be- tion methodology, the Commission may con- directly, of (and that arises out of the manu- fore consideration in the Senate of the nomi- sult with such actuaries and other experts as facture, sale, distribution or installation of nation for appointment to the Commission. it deems appropriate. After hearings and materials or products by, or other conduct (ii) DEFINITION.—In clause (i), the term public comment on the proposed allocation of) a person or persons other than and unaf- ‘‘shareholder’’ shall not include a broadly methodology, the Commission shall as filiated with its ultimate parent or affiliated based mutual fund that includes the stocks promptly as possible promulgate a final rule group or pool in which the ultimate parent of insurer participants as a portion of its establishing such methodology. After pro- participates or participated, or unaffiliated overall holdings. mulgation of the final rule, the Commission with a person that was its ultimate parent or (C) FEDERAL EMPLOYMENT.—A member of shall determine the individual payment of a member of its affiliated group or pool at the Commission may not be an officer or em- each insurer participant under the proce- the time the relevant insurance or reinsur- ployee of the Federal Government, except by dures set forth in subsection (b). ance was issued by the captive insurance reason of membership on the Commission. (C) SCOPE.—Every insurer, reinsurer, and company. (3) PERIOD OF APPOINTMENT.—Members runoff entity with asbestos-related obliga- (D) SEVERAL LIABILITY.—Unless otherwise shall be appointed for the life of the Commis- tions in the United States shall be subject to provided under this Act, each insurer partici- sion. the Commission’s and Administrator’s au- pant’s obligation to make payments to the (4) VACANCIES.—Any vacancy in the Com- thority under this Act, including allocation Fund is several. Unless otherwise provided mission shall be filled in the same manner as determinations, and shall be required to ful- under this Act, there is no joint liability, the original appointment. fill its payment obligation without regard as and the future insolvency by any insurer (5) CHAIRMAN.—The President shall select a to whether it is licensed in the United participant shall not affect the payment re- Chairman from among the members of the States. Every insurer participant not li- quired of any other insurer participant. Commission. censed or domiciled in the United States (3) PAYMENT OF CRITERIA.— (c) MEETINGS.— shall, upon the first payment to the Fund, (A) INCLUSION IN INSURER PARTICIPANT CAT- (1) INITIAL MEETING.—Not later than 30 submit a written consent to the Commis- EGORY.— days after the date on which all members of sion’s and Administrator’s authority under (i) IN GENERAL.—Insurers that have paid, or the Commission have been appointed, the this Act, and to the jurisdiction of the courts been assessed by a legal judgment or settle- Commission shall hold its first meeting. of the United States for purposes of enforc- ment, at least $1,000,000 in defense and in- (2) SUBSEQUENT MEETINGS.—The Commis- ing this Act, in a form determined by the Ad- demnity costs before the date of enactment sion shall meet at the call of the Chairman, ministrator. Any insurer participant refus- of this Act in response to claims for com- as necessary to accomplish the duties under ing to provide a written consent shall be sub- pensation for asbestos injuries arising from a section 212. ject to fines and penalties as provided in sec- policy of liability insurance or contract of li- (3) QUORUM.—No business may be con- tion 223. ability reinsurance or retrocessional reinsur- ducted or hearings held without the partici- (D) ISSUERS OF FINITE RISK POLICIES.— ance shall be insurer participants in the pation of a majority of the members of the (i) IN GENERAL.—The issuer of any policy of Fund. Other insurers shall be exempt from Commission. retrospective reinsurance purchased by an mandatory payments. SEC. 212. DUTIES OF ASBESTOS INSURERS COM- insurer participant or its affiliate after 1990 (ii) INAPPLICABILITY OF SECTION 202.—Since MISSION. that provides for a risk or loss transfer to in- insurers may be subject in certain jurisdic- (a) DETERMINATION OF INSURER PAYMENT sure for asbestos losses and other losses tions to direct action suits, and it is not the OBLIGATIONS.— (both known and unknown), including those intent of this Act to impose upon an insurer, (1) IN GENERAL.— policies commonly referred to as ‘‘finite due to its operation as an insurer, payment (A) DEFINITIONS.—For the purposes of this risk’’, ‘‘aggregate stop loss’’, ‘‘aggregate ex- obligations to the Fund in situations where Act, the terms ‘‘insurer’’ and ‘‘insurer par- cess of loss’’, or ‘‘loss portfolio transfer’’ the insurer is the subject of a direct action, ticipant’’ shall, unless stated otherwise, in- policies, shall be obligated to make pay- no insurer subject to mandatory payments clude direct insurers and reinsurers, as well ments required under this Act directly to the under this section shall also be liable for as any run-off entity established, in whole or Fund on behalf of the insurer participant payments to the Fund as a defendant partici- in part, to review and pay asbestos claims. who is the beneficiary of such policy, subject pant under section 202. (B) PROCEDURES FOR DETERMINING INSURER to the underlying retention and the limits of (B) INSURER PARTICIPANT ALLOCATION METH- PAYMENTS.—The Commission shall determine liability applicable to such policy. ODOLOGY.— the amount that each insurer participant (ii) PAYMENTS.—Payments to the Fund re- (i) IN GENERAL.—The Commission shall es- shall be required to pay into the Fund under quired under this Act shall be treated as loss tablish the payment obligations of indi- the procedures described in this section. The payments for asbestos bodily injury (as if vidual insurer participants to reflect, on an Commission shall make this determination such payments were incurred as liabilities equitable basis, the relative tort system li- by first promulgating a rule establishing a imposed in the tort system) and shall not be ability of the participating insurers in the methodology for allocation of payments subject to exclusion under policies described absence of this Act, considering and among insurer participants and then apply- under clause (i) as a liability with respect to weighting, as appropriate (but exclusive of ing such methodology to determine the indi- tax or assessment. Within 90 days after the workers’ compensation), such factors as— vidual payment for each insurer participant. scheduled date to make an annual payment (I) historic premium for lines of insurance The methodology may include 1 or more al- to the Fund, the insurer participant shall, at associated with asbestos exposure over rel- location formulas to be applied to all insurer its discretion, direct the reinsurer issuing evant periods of time; participants or groups of similarly situated such policy to pay all or a portion of the an- (II) recent loss experience for asbestos li- participants. The Commission’s rule shall in- nual payment directly to the Fund up to the ability; clude a methodology for adjusting payments full applicable limits of liability under the (III) amounts reserved for asbestos liabil- by insurer participants to make up, during policy. The reinsurer issuing such policy ity; the first 5 years of the life of the Fund and shall be obligated to make such payments di- (IV) the likely cost to each insurer partici- any subsequent years as provided in section rectly to the Fund and shall be subject to pant of its future liabilities under applicable 405(f) for any reduction in an insurer partici- the enforcement provisions under section insurance policies; and pant’s annual allocated amount caused by 223. The insurer participant shall remain ob- (V) any other factor the Commission may the granting of a financial hardship or excep- ligated to make payment to the Fund of that determine is relevant and appropriate. tional circumstance adjustment under this portion of the annual payment not directed (ii) DETERMINATION OF RESERVES.—The section, and any amount by which aggregate to the issuer of such reinsurance policy. Commission may establish procedures and insurer payments fall below the level re- (2) AMOUNT OF PAYMENTS.— standards for determination of the asbestos quired under paragraph (3)(C) by reason of (A) AGGREGATE PAYMENT OBLIGATION.—The reserves of insurer participants. The reserves the failure or refusal of any insurer partici- total payment required of all insurer partici- of a United States licensed reinsurer that is pant to make a required payment, or for any pants over the life of the Fund shall be equal wholly owned by, or under common control other reason that causes such payments to to $46,025,000,000, less any bankruptcy trust of, a United States licensed direct insurer fall below the level required under paragraph credits under section 222(d). shall be included as part of the direct insur- (3)(C). The Commission shall conduct a thor- (B) ACCOUNTING STANDARDS.—In deter- er’s reserves when the reinsurer’s financial ough study (within the time limitations mining the payment obligations of partici- results are included as part of the direct in- under this subparagraph) of the accuracy of pants that are not licensed or domiciled in surer’s United States operations, as reflected the reserve allocation of each insurer partic- the United States or that are runoff entities, in footnote 33 of its filings with the National ipant, and may request information from the the Commission shall use accounting stand- Association of Insurance Commissioners or

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00159 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1294 CONGRESSIONAL RECORD — SENATE February 14, 2006 in published financial statements prepared (II) be applied on an equal pro rata basis to the initial determination requiring a pay- in accordance with generally accepted ac- the funding obligations of all insurer partici- ment from the insurer participant shall be counting principles. pants for that year. based on the best information available to (C) PAYMENT SCHEDULE.—The aggregate an- (iv) NEW INFORMATION.—If at any time the the Commission. nual amount of payments by insurer partici- Administrator determines that a reduction (4) COMMISSION REVIEW, REVISION, AND FI- pants over the life of the Fund shall be as or waiver under this section may cause the NALIZATION OF INITIAL PAYMENT DETERMINA- follows: assets of the Fund and expected future pay- TIONS.— (i) For years 1 and 2, $2,700,000,000 annually. ments to decrease to a level at which the (A) COMMENTS FROM INSURER PARTICI- (ii) For years 3 through 5, $5,075,000,000 an- Fund may not be able to satisfy all of its an- PANTS.—Not later than 30 days after receiv- nually. ticipated obligations, the Administrator ing a notice of initial determination from (iii) For years 6 through 27, $1,147,000,000 shall revoke all or any part of such reduction the Commission, an insurer participant may annually. or waiver to the extent necessary to ensure provide the Commission with additional in- (iv) For year 28, $166,000,000. that the Fund’s obligations are met. Such formation to support adjustments to the re- (D) CERTAIN RUNOFF ENTITIES.—A runoff en- revocations shall be applied on an equal pro quired payments to reflect severe financial tity shall include any direct insurer or rein- rata basis to the funding obligations of all hardship or exceptional circumstances, in- surer whose asbestos liability reserves have insurer participants for that year. cluding the provision of an offset credit for (b) PROCEDURE FOR NOTIFYING INSURER been transferred, directly or indirectly, to an insurer participant for the amount of any PARTICIPANTS OF INDIVIDUAL PAYMENT OBLI- the runoff entity and on whose behalf the asbestos-related payments it made or was le- GATIONS.— gally obligated to make, including payments runoff entity handles or adjusts and, where (1) NOTICE TO PARTICIPANTS.—Not later released from an escrow, as the result of a appropriate, pays asbestos claims. than 30 days after promulgation of the final bankruptcy judicially confirmed after May (E) FINANCIAL HARDSHIP AND EXCEPTIONAL rule establishing an allocation methodology 22, 2003, but before the date of enactment of CIRCUMSTANCE ADJUSTMENTS.— under subsection (a)(1), the Commission this Act. (i) IN GENERAL.—Under the procedures es- shall— (B) ADDITIONAL PARTICIPANTS.—If, before tablished in subsection (b), an insurer partic- (A) directly notify all reasonably identifi- the final determination of the Commission, ipant may seek adjustment of the amount of able insurer participants of the requirement the Commission receives information that its payments based on exceptional cir- to submit information necessary to calculate an additional person may qualify as an in- cumstances or severe financial hardship. the amount of any required payment to the surer participant, the Commission shall re- (ii) FINANCIAL ADJUSTMENTS.—An insurer Fund under the allocation methodology; and quire such person to submit information nec- participant may qualify for an adjustment (B) publish in the Federal Register a no- essary to determine whether payments from based on severe financial hardship by dem- tice— that person should be required, in accord- onstrating that payment of the amounts re- (i) requiring any person who may be an in- ance with the requirements of this sub- quired by the Commission’s methodology surer participant (as determined by criteria section. would jeopardize the solvency of such partic- outlined in the notice) to submit such infor- (C) REVISION PROCEDURES.—The Commis- ipant. mation; and sion shall adopt procedures for revising ini- (iii) EXCEPTIONAL CIRCUMSTANCE ADJUST- (ii) that includes a list of all insurer par- tial payments based on information received MENT.—An insurer participant may qualify ticipants notified by the Commission under under subparagraphs (A) and (B), including a for an adjustment based on exceptional cir- subparagraph (A), and provides for 30 days provision requiring an offset credit for an in- cumstances by demonstrating— for the submission of comments or informa- surer participant for the amount of any as- (I) that the amount of its payments under tion regarding the completeness and accu- bestos-related payments it made or was le- the Commission’s allocation methodology is racy of the list of identified insurer partici- gally obligated to make, including payments exceptionally inequitable when measured pants. released from an escrow, as the result of a against the amount of the likely cost to the (2) RESPONSE REQUIRED BY INDIVIDUAL IN- bankruptcy confirmed after May 22, 2003, but participant of its future liability in the tort SURER PARTICIPANTS.— before the date of enactment of this Act. system in the absence of the Fund; (A) IN GENERAL.—Any person who receives (5) EXAMINATIONS AND SUBPOENAS.— (II) an offset credit as described in subpara- notice under paragraph (1)(A), and any other (A) EXAMINATIONS.—The Commission may graphs (A) and (C) of subsection (b)(4); or person meeting the criteria specified in the conduct examinations of the books and (III) other exceptional circumstances. notice published under paragraph (1)(B), records of insurer participants to determine The Commission may determine whether to shall respond by providing the Commission the completeness and accuracy of informa- grant an adjustment and the size of any such with all the information requested in the no- tion submitted, or required to be submitted, adjustment, but except as provided under tice under a schedule or by a date estab- to the Commission for purposes of deter- paragraph (1)(B), subsection (f)(3), and sec- lished by the Commission. mining participant payments. tion 405(f), any such adjustment shall not af- (B) CERTIFICATION.—The response sub- (B) SUBPOENAS.—The Commission may re- fect the aggregate payment obligations of in- mitted under subparagraph (A) shall be quest the Attorney General to subpoena per- surer participants specified in paragraph signed by a responsible corporate officer, sons to compel testimony, records, and other (2)(A) and subparagraph (C) of this para- general partner, proprietor, or individual of information relevant to its responsibilities graph. similar authority, who shall certify under under this section. The Attorney General (iv) TIME PERIOD OF ADJUSTMENT.—Except penalty of law the completeness and accu- may enforce such subpoena in appropriate for adjustments for offset credits, adjust- racy of the information submitted. proceedings in the United States district ments granted under this subsection shall (3) NOTICE TO INSURER PARTICIPANTS OF INI- court for the district in which the person to have a term not to exceed 3 years. An insurer TIAL PAYMENT DETERMINATION.— whom the subpoena was addressed resides, participant may renew its adjustment by (A) IN GENERAL.— was served, or transacts business. demonstrating to the Administrator that it (i) NOTICE TO INSURERS.—Not later than 120 (6) ESCROW PAYMENTS.—Without regard to remains justified. days after receipt of the information re- an insurer participant’s payment obligation (F) FUNDING HOLIDAYS.— quired by paragraph (2), the Commission under this section, any escrow or similar ac- (i) IN GENERAL.—If the Administrator de- shall send each insurer participant a notice count established before the date of enact- termines, at any time after 10 years fol- of initial determination requiring payments ment of this Act by an insurer participant in lowing the date of enactment of this Act, to the Fund, which shall be based on the in- connection with an asbestos trust fund that that the assets of the Fund at the time of formation received from the participant in has not been judicially confirmed by final such determination and expected future pay- response to the Commission’s request for in- order by the date of enactment of this Act ments are sufficient to satisfy the Fund’s an- formation. An insurer participant’s pay- shall be the property of the insurer partici- ticipated obligations without the need for ments shall be payable over the schedule es- pant and returned to that insurer partici- all, or any portion of, that year’s payment tablished in subsection (a)(3)(C), in annual pant. otherwise required under this subtitle, the amounts proportionate to the aggregate an- (7) NOTICE TO INSURER PARTICIPANTS OF Administrator shall reduce or waive all or nual amount of payments for all insurer par- FINAL PAYMENT DETERMINATIONS.—Not later any part of the payments required from in- ticipants for the applicable year. than 60 days after the notice of initial deter- surer participants for that year. (ii) PUBLIC NOTICE.—Not later than 7 days mination is sent to the insurer participants, (ii) ANNUAL REVIEW.—The Administrator after sending the notification of initial de- the Commission shall send each insurer par- shall undertake the review required by this termination to insurer participants, the ticipant a notice of final determination. subsection and make the necessary deter- Commission shall publish in the Federal (c) INSURER PARTICIPANTS VOLUNTARY AL- mination under clause (i) every year. Register a notice listing the insurer partici- LOCATION AGREEMENT.— (iii) LIMITATIONS OF FUNDING HOLIDAYS.— pants that have been sent such notification, (1) IN GENERAL.—Not later than 30 days Any reduction or waiver of the insurer par- and the initial determination on the pay- after the Commission proposes its rule estab- ticipants’ funding obligations shall— ment obligation of each identified partici- lishing an allocation methodology under sub- (I) be made only to the extent the Adminis- pant. section (a)(1), direct insurer participants li- trator determines that the Fund will still be (B) NO RESPONSE; INCOMPLETE RESPONSE.— censed or domiciled in the United States, able to satisfy all of its anticipated obliga- If no response is received from an insurer other direct insurer participants, reinsurer tions; and participant, or if the response is incomplete, participants licensed or domiciled in the

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00160 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1295 United States, or other reinsurer partici- emption from or reduction in any payment accepted accounting purposes and statutory pants, may submit an allocation agreement, required under this subsection under the fi- accounting purposes for each insurer partici- approved by all of the participants in the ap- nancial hardship and exceptional cir- pant. This subsection shall in no way reduce plicable group, to the Commission. cumstance standards established under sub- the amount of monetary payments to the (2) ALLOCATION AGREEMENT.—To the extent section (a)(3)(E). Fund by insurer participants as required the participants in any such applicable group (4) APPEAL OF INTERIM PAYMENT DECI- under subsection (a). voluntarily agree upon an allocation ar- SIONS.—A decision by the Administrator to (h) JUDICIAL REVIEW.—The Commission’s rangement, any such allocation agreement establish an interim payment obligation rule establishing an allocation methodology, shall only govern the allocation of payments shall be considered final agency action and its final determinations of payment obliga- within that group and shall not determine reviewable under section 303, except that the tions and other final action shall be judi- the aggregate amount due from that group. reviewing court may not stay an interim cially reviewable as provided in title III. (3) CERTIFICATION.—The Commission shall payment during the pendency of the appeal. SEC. 213. POWERS OF ASBESTOS INSURERS COM- determine whether an allocation agreement (f) TRANSFER OF AUTHORITY FROM THE COM- MISSION. submitted under subparagraph (A) meets the MISSION TO THE ADMINISTRATOR.— (a) RULEMAKING.—The Commission shall requirements of this subtitle and, if so, shall (1) IN GENERAL.—Upon termination of the promulgate such rules and regulations as certify the agreement as establishing the al- Commission under section 215, the Adminis- necessary to implement its authority under location methodology governing the indi- trator shall assume all the responsibilities this Act, including regulations governing an vidual payment obligations of the partici- and authority of the Commission, except allocation methodology. Such rules and reg- pants who are parties to the agreement. The that the Administrator shall not have the ulations shall be promulgated after pro- authority of the Commission under this sub- power to modify the allocation methodology viding interested parties with the oppor- title shall, with respect to participants who established by the Commission or by cer- tunity for notice and comment. are parties to a certified allocation agree- tified agreement or to promulgate a rule es- (b) HEARINGS.—The Commission may hold ment, terminate on the day after the Com- tablishing any such methodology. such hearings, sit and act at such times and mission certifies such agreement. Under sub- (2) FINANCIAL HARDSHIP AND EXCEPTIONAL places, take such testimony, and receive section (f), the Administrator shall assume CIRCUMSTANCE ADJUSTMENTS.—Upon termi- such evidence as the Commission considers responsibility, if necessary, for calculating nation of the Commission under section 215, advisable to carry out this Act. The Commis- the individual payment obligations of par- the Administrator shall have the authority, sion shall also hold a hearing on any pro- ticipants who are parties to the certified upon application by any insurer participant, posed regulation establishing an allocation agreement. to make adjustments to annual payments methodology, before the Commission’s adop- (d) COMMISSION REPORT.— upon the same grounds as provided in sub- tion of a final regulation. (c) INFORMATION FROM FEDERAL AND STATE (1) RECIPIENTS.—Until the work of the section (a)(3)(D). Adjustments granted under Commission has been completed and the this subsection shall have a term not to ex- AGENCIES.—The Commission may secure di- Commission terminated, the Commission ceed 3 years. An insurer participant may rectly from any Federal or State department shall submit an annual report, containing renew its adjustment by demonstrating that or agency such information as the Commis- the information described under paragraph it remains justified. Upon the grant of any sion considers necessary to carry out this (2), to— adjustment, the Administrator shall increase Act. Upon request of the Chairman of the (A) the Committee on the Judiciary of the the payments, consistent with subsection Commission, the head of such department or Senate; (a)(1)(B), required of all other insurer par- agency shall furnish such information to the (B) the Committee on the Judiciary of the ticipants so that there is no reduction in the Commission. (d) POSTAL SERVICES.—The Commission House of Representatives; and aggregate payment required of all insurer may use the United States mails in the same (C) the Administrator. participants for the applicable years. The in- manner and under the same conditions as (2) CONTENTS.—The report under paragraph crease in an insurer participant’s required other departments and agencies of the Fed- (1) shall state the amount that each insurer payment shall be in proportion to such par- eral Government. participant is required to pay to the Fund, ticipant’s share of the aggregate payment (e) GIFTS.—The Commission may not ac- including the payment schedule for such obligation of all insurer participants. cept, use, or dispose of gifts or donations of payments. (3) CREDITS FOR SHORTFALL ASSESSMENTS.— services or property. (e) INTERIM PAYMENTS.— If insurer participants are required during (f) EXPERT ADVICE.—In carrying out its re- (1) AMOUNT OF INTERIM PAYMENT.—Within the first 5 years of the life of the Fund to sponsibilities, the Commission may enter 90 days after the date of enactment of this make up any shortfall in required insurer into such contracts and agreements as the Act, insurer participants shall make an ag- payments under subsection (a)(1)(B), then, Commission determines necessary to obtain gregate payment to the Fund not to exceed beginning in year 6, the Administrator shall expert advice and analysis. 50 percent of the aggregate funding obliga- grant each insurer participant a credit SEC. 214. PERSONNEL MATTERS. tion specified under subsection (a)(3)(C) for against its annual required payments during (a) COMPENSATION OF MEMBERS.—Each year 1. the applicable years that in the aggregate member of the Commission shall be com- (2) RESERVE INFORMATION.—Within 30 days equal the amount of shortfall assessments pensated at a rate equal to the daily equiva- after the date of enactment of this Act, each paid by such insurer participant during the lent of the annual rate of basic pay pre- insurer participant shall submit to the Ad- first 5 years of the life of the Fund. The cred- scribed for level IV of the Executive Sched- ministrator a certified statement of its net it shall be prorated over the same number of ule under section 5315 of title 5, United held reserves for asbestos liabilities as of De- years as the number of years during which States Code, for each day (including travel cember 31, 2004. the insurer participant paid a shortfall as- time) during which such member is engaged (3) ALLOCATION OF INTERIM PAYMENT.—The sessment. Insurer participants which did not in the performance of the duties of the Com- Administrator shall allocate the interim pay all required payments to the Fund dur- mission. payment among the individual insurer par- ing the first 5 years of the life of the Fund (b) TRAVEL EXPENSES.—The members of ticipants on an equitable basis using the net shall not be eligible for a credit. The Admin- the Commission shall be allowed travel ex- held asbestos reserve information provided istrator shall not grant a credit for shortfall penses, including per diem in lieu of subsist- by insurer participants under subsection assessments imposed under section 405(f). ence, at rates authorized for employees of (a)(3)(B). Within 60 days after the date of en- (4) FINANCIAL SECURITY REQUIREMENTS.— agencies under subchapter I of chapter 57 of actment of this Act, the Administrator shall Whenever an insurer participant’s A.M. title 5, United States Code, while away from publish in the Federal Register the name of Best’s claims payment rating or Standard their homes or regular places of business in each insurer participant, and the amount of and Poor’s financial strength rating falls the performance of services for the Commis- the insurer participant’s allocated share of below A¥, and until such time as either the sion. the interim payment. The use of net held as- insurer participant’s A.M. Best’s Rating or (c) STAFF.— bestos reserves as the basis to determine an Standard and Poor’s rating is equal to or (1) IN GENERAL.—The Chairman of the Com- interim allocation shall not be binding on greater than A¥, the Administrator shall mission may, without regard to the civil the Administrator in the determination of have the authority to require that the par- service laws and regulations, appoint and an appropriate final allocation methodology ticipating insurer either— terminate an executive director and such under this section. All payments required (A) pay the present value of its remaining other additional personnel as may be nec- under this paragraph shall be credited Fund payments at a discount rate deter- essary to enable the Commission to perform against the participant’s ultimate payment mined by the Administrator; or its duties. The employment of an executive obligation to the Fund established by the (B) provide an evergreen letter of credit or director shall be subject to confirmation by Commission. If an interim payment exceeds financial guarantee for future payments the Commission. the ultimate payment, the Fund shall pay issued by an institution with an A.M. Best’s (2) COMPENSATION.—The Chairman of the interest on the amount of the overpayment claims payment rating or Standard & Poor’s Commission may fix the compensation of the at a rate determined by the Administrator. financial strength rating of at least A+. executive director and other personnel with- If the ultimate payment exceeds the interim (g) ACCOUNTING TREATMENT.—Insurer par- out regard to chapter 51 and subchapter III of payment, the participant shall pay interest ticipants’ payment obligations to the Fund chapter 53 of title 5, United States Code, re- on the amount of the underpayment at the shall be subject to discounting under the ap- lating to classification of positions and Gen- same rate. Any participant may seek an ex- plicable accounting guidelines for generally eral Schedule pay rates, except that the rate

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00161 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1296 CONGRESSIONAL RECORD — SENATE February 14, 2006 of pay for the executive director and other (B) A Lung Cancer Account, which shall be terim Administrator, if the Administrator is personnel may not exceed the rate payable used solely to make payments to claimants not yet appointed, shall publish in the Fed- for level V of the Executive Schedule under eligible for an award under the criteria of eral Register a list of submissions required section 5316 of such title. Level VIII. by this subsection, including the name of (d) DETAIL OF GOVERNMENT EMPLOYEES.— (C) A Severe Asbestosis Account, which such persons or ultimate parents and the Any Federal Government employee may be shall be used solely to make payments to likely tier to which such persons or affiliated detailed to the Commission without reim- claimants eligible for an award under the groups may be assigned. After publication of bursement, and such detail shall be without criteria of Level V. such list, any person who, acting in good interruption or loss of civil service status or (D) A Moderate Asbestosis Account, which faith, has knowledge that any other person privilege. shall be used solely to make payments to has prior asbestos expenditures of $1,000,000 (e) PROCUREMENT OF TEMPORARY AND claimants eligible for an award under the or greater may submit to the Administrator INTERMITTENT SERVICES.—The Chairman of criteria of Level IV. or Interim Administrator information on the the Commission may procure temporary and (2) ALLOCATION.—The Administrator shall identity of that person and the person’s prior intermittent services under section 3109(b) of allocate to each of the 4 accounts established asbestos expenditures. title 5, United States Code, at rates for indi- under paragraph (1) a portion of payments (f) NO PRIVATE RIGHT OF ACTION.—Except viduals which do not exceed the daily equiva- made to the Fund adequate to compensate as provided in sections 203(b)(2)(D)(ii) and lent of the annual rate of basic pay pre- all anticipated claimants for each account. 204(g)(3), there shall be no private right of scribed for level V of the Executive Schedule Within 60 days after the date of enactment of action under any Federal or State law under section 5316 of such title. this Act, and periodically during the life of against any participant based on a claim of SEC. 215. TERMINATION OF ASBESTOS INSURERS the Fund, the Administrator shall determine compliance or noncompliance with this Act COMMISSION. an appropriate amount to allocate to each or the involvement of any participant in the The Commission shall terminate 90 days account after consulting appropriate epide- enactment of this Act. after the last date on which the Commission miological and statistical studies. SEC. 222. MANAGEMENT OF THE FUND. makes a final determination of contribution (d) AUDIT AUTHORITY.— (a) IN GENERAL.—Amounts in the Fund under section 212(b) or 90 days after the last (1) IN GENERAL.—For the purpose of shall be held for the exclusive purpose of pro- appeal of any final action by the Commission ascertaining the correctness of any informa- viding benefits to asbestos claimants and is exhausted, whichever occurs later. tion provided or payments made to the Fund, their beneficiaries and to otherwise defray SEC. 216. EXPENSES AND COSTS OF COMMISSION. or determining whether a person who has not the reasonable expenses of administering the All expenses of the Commission shall be made a payment to the Fund was required to Fund. paid from the Fund. do so, or determining the liability of any (b) INVESTMENTS.— Subtitle C—Asbestos Injury Claims person for a payment to the Fund, or col- (1) IN GENERAL.—Amounts in the Fund Resolution Fund lecting any such liability, or inquiring into shall be administered and invested with the SEC. 221. ESTABLISHMENT OF ASBESTOS INJURY any offense connected with the administra- care, skill, prudence, and diligence, under CLAIMS RESOLUTION FUND. tion or enforcement of this title, the Admin- the circumstances prevailing at the time of (a) ESTABLISHMENT.—There is established istrator is authorized— such investment, that a prudent person act- in the Office of Asbestos Disease Compensa- (A) to examine any books, papers, records, ing in a like capacity and manner would use. tion the Asbestos Injury Claims Resolution or other data which may be relevant or ma- (2) STRATEGY.—The Administrator shall in- Fund, which shall be available to pay— terial to such inquiry; vest amounts in the Fund in a manner that (1) claims for awards for an eligible disease (B) to summon the person liable for a pay- enables the Fund to make current and future or condition determined under title I; ment under this title, or officer or employee distributions to or for the benefit of asbestos (2) claims for reimbursement for medical of such person, or any person having posses- claimants. In pursuing an investment strat- monitoring determined under title I; sion, custody, or care of books of account egy under this subparagraph, the Adminis- (3) principal and interest on borrowings containing entries relating to the business of trator shall consider, to the extent relevant under subsection (b); the person liable or any other person the Ad- to an investment decision or action— (4) the remaining obligations to the asbes- ministrator may deem proper, to appear be- (A) the size of the Fund; tos trust of a debtor and the class action fore the Administrator at a time and place (B) the nature and estimated duration of trust under section 405(g)(8); and named in the summons and to produce such the Fund; (5) administrative expenses to carry out books, papers, records, or other data, and to (C) the liquidity and distribution require- the provisions of this Act. give such testimony, under oath, as may be ments of the Fund; (b) BORROWING AUTHORITY.— relevant or material to such inquiry; and (D) general economic conditions at the (1) IN GENERAL.—The Administrator is au- (C) to take such testimony of the person time of the investment; thorized to borrow from time to time concerned, under oath, as may be relevant or (E) the possible effect of inflation or defla- amounts as set forth in this subsection, for material to such inquiry. tion on Fund assets; purposes of enhancing liquidity available to (2) FALSE, FRAUDULENT, OR FICTITIOUS (F) the role that each investment or course the Fund for carrying out the obligations of STATEMENTS OR PRACTICES.—If the Adminis- of action plays with respect to the overall the Fund under this Act. The Administrator trator determines that materially false, assets of the Fund; may authorize borrowing in such form, over fraudulent, or fictitious statements or prac- (G) the expected amount to be earned (in- such term, with such necessary disclosure to tices have been submitted or engaged in by cluding both income and appreciation of cap- its lenders as will most efficiently enhance persons submitting information to the Ad- ital) through investment of amounts in the the Fund’s liquidity. ministrator or to the Asbestos Insurers Com- Fund; and (3) BORROWING CAPACITY.—The maximum mission or any other person who provides (H) the needs of asbestos claimants for cur- amount that may be borrowed under this evidence in support of such submissions for rent and future distributions authorized subsection at any given time is the amount purposes of determining payment obligations under this Act. that, taking into account all payment obli- under this Act, the Administrator may im- (d) BANKRUPTCY TRUST CREDITS.— gations related to all previous amounts bor- pose a civil penalty not to exceed $10,000 on (1) IN GENERAL.—Notwithstanding any rowed in accordance with this subsection and any person found to have submitted or en- other provision of this Act, but subject to all committed obligations of the Fund at the gaged in a materially false, fraudulent, or paragraph (2) of this subsection, the Admin- time of borrowing, can be repaid in full (with fictitious statement or practice under this istrator shall provide a credit toward the ag- interest) in a timely fashion from— Act. The Administrator shall promulgate ap- gregate payment obligations under sections (A) the available assets of the Fund as of propriate regulations to implement this 202(a)(2) and 212(a)(2)(A) for assets received the time of borrowing; and paragraph. by the Fund from any bankruptcy trust es- (B) all amounts expected to be paid by par- (e) IDENTITY OF CERTAIN DEFENDANT PAR- tablished under a plan of reorganization con- ticipants during the subsequent 2 years. TICIPANTS; TRANSPARENCY.— firmed and substantially consummated after (4) REPAYMENT OBLIGATIONS.—Repayment (1) SUBMISSION OF INFORMATION.—Not later July 31, 2004. of monies borrowed by the Administrator than 60 days after the date of enactment of (2) ALLOCATION OF CREDITS.—The Adminis- under this subsection shall be repaid in full this Act, any person who, acting in good trator shall allocate, for each such bank- by the Fund contributors and is limited sole- faith, has knowledge that such person or ruptcy trust, the credits for such assets be- ly to amounts available, present or future, in such person’s affiliated group has prior as- tween the defendant and insurer aggregate the Fund. bestos expenditures of $1,000,000 or greater, payment obligations as follows: (c) LOCKBOX FOR SEVERE ASBESTOS-RE- shall submit to the Administrator— (A) DEFENDANT PARTICIPANTS.—The aggre- LATED INJURY CLAIMANTS.— (A) either the name of such person, or such gate amount that all persons other than in- (1) IN GENERAL.—Within the Fund, the Ad- person’s ultimate parent; and surers contributing to the bankruptcy trust ministrator shall establish the following ac- (B) the likely tier to which such person or would have been required to pay as Tier I de- counts: affiliated group may be assigned under this fendants under section 203(b) if the plan of (A) A Mesothelioma Account, which shall Act. reorganization under which the bankruptcy be used solely to make payments to claim- (2) PUBLICATION.—Not later than 20 days trust was established had not been confirmed ants eligible for an award under the criteria after the end of the 60-day period referred to and substantially consummated and the pro- of Level IX. in paragraph (1), the Administrator or In- ceeding under chapter 11 of title 11, United

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(A) any amounts collected under this sub- thereof, if such challenge could have been (B) INSURER PARTICIPANTS.—The aggregate section shall not increase the amount of made during the review provided under sec- amount of all credits to which insurers are deemed erosion allocated to any policy or tion 204(j)(10), or in a judicial review pro- entitled to under section 202(c)(4)(A) of the contract under section 404, or otherwise re- ceeding under section 303. Act. duce coverage available to a participant; and (h) DEPOSIT OF FUNDS.— SEC. 223. ENFORCEMENT OF PAYMENT OBLIGA- (B) subrogation under this subsection shall (1) IN GENERAL.—Any funds collected under TIONS. have no effect on the validity of the insur- subsection (c)(2) (A) or (C) shall be— (a) DEFAULT.—If any participant fails to ance policies or reinsurance, and any con- (A) deposited in the Fund; and make any payment in the amount of and ac- trary State law is expressly preempted. (B) used only to pay— cording to the schedule under this Act or as (3) RECOVERABILITY OF CONTRIBUTION.—For (i) claims for awards for an eligible disease prescribed by the Administrator, after de- purposes of this subsection— or condition determined under title I; or mand and a 30-day opportunity to cure the (A) all contributions to the Fund required (ii) claims for reimbursement for medical default, there shall be a lien in favor of the of a participant shall be deemed to be sums monitoring determined under title I. United States for the amount of the delin- legally required to be paid for bodily injury (2) NO EFFECT ON OTHER LIABILITIES.—The quent payment (including interest) upon all resulting from exposure to asbestos; imposition of a fine under subsection property and rights to property, whether real (B) all contributions to the Fund required (c)(2)(C) shall have no effect on— or personal, belonging to such participant. of any participant shall be deemed to be a (A) the assessment of contributions under (b) BANKRUPTCY.—In the case of a bank- single loss arising from a single occurrence subtitles A and B; or ruptcy or insolvency proceeding, the lien im- under each contract to which the Adminis- (B) any other provision of this Act. posed under subsection (a) shall be treated in trator is subrogated; and (i) PROPERTY OF THE ESTATE.—Section the same manner as a lien for taxes due and (C) with respect to reinsurance contracts, owing to the United States for purposes of 541(b) of title 11, United States Code, is all contributions to the Fund required of a the provisions of title 11, United States Code, amended— participant shall be deemed to be payments or section 3713(a) of title 31, United States (1) in paragraph (4)(B)(ii), by striking ‘‘or’’ to a single claimant for a single loss. Code. The United States Bankruptcy Court at the end; (4) NO CREDIT OR OFFSET.—In any action shall have jurisdiction over any issue or con- (2) in paragraph (5), by striking ‘‘prohibi- brought under this subsection, the non- troversy regarding lien priority and lien per- tion.’’ and inserting ‘‘prohibition; or’’; and paying insurer or reinsurer shall be entitled fection arising in a bankruptcy case due to a (3) by inserting after paragraph (5) and be- to no credit or offset for amounts collectible lien imposed under subsection (a). fore the last undesignated sentence the fol- (c) CIVIL ACTION.— or potentially collectible from any partici- lowing: (1) IN GENERAL.—In any case in which there pant nor shall such defaulting participant ‘‘(6) the value of any pending claim against has been a refusal or failure to pay any li- have any right to collect any sums payable or the amount of an award granted from the ability imposed under this Act, including a under this section from any participant. Asbestos Injury Claims Resolution Fund es- refusal or failure to provide the information (5) COOPERATION.—Insureds and cedents tablished under the Fairness in Asbestos In- required under section 204 needed to deter- shall cooperate with the Administrator’s jury Resolution Act of 2006.’’. mine liability, the Administrator may bring reasonable requests for assistance in any (j) PROPOSED TRANSACTIONS.— a civil action in any appropriate United such proceeding. The positions taken or (1) NOTICE OF PROPOSED TRANSACTION.—Any States District Court, or any other appro- statements made by the Administrator in participant that has taken any action to ef- priate lawsuit or proceeding outside of the any such proceeding shall not be binding on fectuate a proposed transaction or a pro- United States— or attributed to the insureds or cedents in posed series of transactions under which a (A) to enforce the liability and any lien of any other proceeding. The outcome of such a significant portion of such participant’s as- the United States imposed under this sec- proceeding shall not have a preclusive effect sets, properties or business will, if con- tion; on the insureds or cedents in any other pro- summated as proposed, be, directly or indi- (B) to subject any property of the partici- ceeding and shall not be admissible against rectly, transferred by any means (including, pant, including any property in which the any subrogee under this section. The Admin- without limitation, by sale, dividend, con- participant has any right, title, or interest istrator shall have the authority to settle or tribution to a subsidiary or split-off) to 1 or to the payment of such liability; compromise any claims against a nonpaying more persons other than the participant (C) for temporary, preliminary, or perma- insurer participant under this subsection. shall provide written notice to the Adminis- (e) BAR ON UNITED STATES BUSINESS.—If nent relief; or trator of such proposed transaction (or pro- any direct insurer or reinsurer refuses to pay (D) to enforce a subpoena issued under sec- posed series of transactions). Upon the re- any contribution required by this Act, then, tion 204(i)(9) to compel the production of quest of such participant, and for so long as in addition to any other penalties imposed documents necessary to determine liability. the participant shall not publicly disclose by this Act, the Administrator shall issue an (2) ADDITIONAL PENALTIES.—In any action the transaction or series of transactions and order barring such entity and its affiliates under paragraph (1) in which the refusal or the Administrator shall not commence any from insuring risks located within the failure to pay was willful, the Administrator action under paragraph (6), the Adminis- United States or otherwise doing business trator shall treat any such notice as con- may seek recovery— within the United States unless and until it fidential commercial information under sec- (A) of punitive damages; complies. If any direct insurer or reinsurer tion 552 of title 5, United States Code. (B) of the costs of any civil action under refuses to furnish any information requested (2) TIMING OF NOTICE AND RELATED AC- this subsection, including reasonable fees in- by the Administrator, the Administrator TIONS.— curred for collection, expert witnesses, and may issue an order barring such entity and (A) IN GENERAL.—Any notice that a partici- attorney’s fees; and its affiliates from insuring risks located pant is required to give under paragraph (1) (C) in addition to any other penalty, of a within the United States or otherwise doing shall be given not later than 30 days before fine equal to the total amount of the liabil- business within the United States unless and the date of consummation of the proposed ity that has not been collected. until it complies. Insurer participants or (d) ENFORCEMENT AUTHORITY AS TO INSURER their affiliates seeking to obtain a license transaction or the first transaction to occur PARTICIPANTS.— from any State to write any type of insur- in a proposed series of transactions. (1) IN GENERAL.—In addition to or in lieu of ance shall be barred from obtaining any such (B) OTHER NOTIFICATIONS.— the enforcement remedies described in sub- license until payment of all contributions re- (i) IN GENERAL.—Not later than the date in section (c), the Administrator may seek to quired as of the date of license application. any year by which a participant is required recover amounts in satisfaction of a pay- (f) CREDIT FOR REINSURANCE.—If the Ad- to make its contribution to the Fund, the ment not timely paid by an insurer partici- ministrator determines that an insurer par- participant shall deliver to the Adminis- pant under the procedures under this sub- ticipant that is a reinsurer is in default in trator a written certification stating that— section. paying any required contribution or other- (I) the participant has complied during the (2) SUBROGATION.—To the extent required wise not in compliance with this Act, the period since the last such certification or the to establish personal jurisdiction over non- Administrator may issue an order barring date of enactment of this Act with the notice paying insurer participants, the Adminis- any direct insurer participant from receiving requirements set forth in this subsection; or trator shall be deemed to be subrogated to credit for reinsurance purchased from the de- (II) the participant was not required to the contractual rights of participants to faulting reinsurer after the date of the Ad- provide any notice under this subsection dur- seek recovery from nonpaying insuring par- ministrator’s determination of default. Any ing such period. ticipants that are domiciled outside the State law governing credit for reinsurance to (ii) SUMMARY.—The Administrator shall in- United States under the policies of liability the contrary is preempted. clude in the annual report required to be insurance or contracts of liability reinsur- (g) DEFENSE LIMITATION.—In any pro- submitted to Congress under section 405 a ance or retrocessional reinsurance applicable ceeding under this section, the participant summary of all such notices (after removing to asbestos claims, and the Administrator shall be barred from bringing any challenge all confidential identifying information) re- may bring an action or an arbitration to any determination of the Administrator ceived during the most recent fiscal year.

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(C) NOTICE COMPLETION.—The Adminis- (i) involving a person or persons who, as a (1) IN GENERAL.—Not later than 1 year after trator shall not consider any notice given result of such transaction (or series of trans- the date of enactment of this Act, the Ad- under paragraph (1) as given until such time actions), may have or may become the suc- ministrator shall establish an outreach and as the Administrator receives substantially cessor in interest or successors in interest of education program, including a website de- all the information required by this sub- such participant, where the status or poten- signed to provide information about asbes- section. tial status as a successor in interest has not tos-related medical conditions to members of (3) CONTENTS OF NOTICE.— been stated and acknowledged by the partici- populations at risk of developing such condi- (A) IN GENERAL.—The Administrator shall pant and such person; or tions. determine by rule or regulation the informa- (ii) that may be subject to avoidance by a (2) INFORMATION.—The information pro- tion to be included in the notice required trustee under section 544(b) or 548 of title 11, vided under paragraph (1) shall include infor- under this subsection, which shall include United States Code, as if, but whether or not, mation about— such information as may be necessary to en- the participant is a subject to a case under (A) the signs and symptoms of asbestos-re- able the Administrator to determine wheth- title 11, United States Code, lated medical conditions; er— then the Administrator or such participant (B) the value of appropriate medical (i) the person or persons to whom the as- may, as a deemed creditor under applicable screening programs; and (C) actions that the individuals can take to sets, properties or business are being trans- law, bring a civil action in an appropriate reduce their future health risks related to ferred in the proposed transaction (or pro- forum against the participant or any other asbestos exposure. posed series of transactions) should be con- person who is either a party to the trans- (3) CONTRACTS.—Preference in any contract sidered to be the successor in interest of the action (or series of transactions) or the re- under this subsection shall be given to pro- participant for purposes of this Act, or cipient of any asset, property or business of viders that are existing nonprofit organiza- (ii) the proposed transaction (or proposed the participant. tions with a history and experience of pro- series of transactions) would, if con- (B) RELIEF ALLOWED.—In any action com- viding occupational health outreach and edu- summated, be subject to avoidance by a menced under this subsection, the Adminis- cational programs for individuals exposed to trustee under section 544(b) or 548 of title 11, trator or a participant, as applicable, may United States Code, as if, but whether or not, asbestos. seek— (c) MEDICAL SCREENING PROGRAM.— the participant is subject to a case under (i) with respect to a transaction (or series title 11, United States Code. (1) ESTABLISHMENT OF PROGRAM.—Not soon- of transactions) referenced in clause (i) of er than 18 months or later than 24 months (B) STATEMENTS.—The notice shall also in- subparagraph (A), a declaratory judgment re- clude— after the Administrator certifies that the garding whether such person will or has be- Fund is fully operational and processing (i) a statement by the participant as to come the successor in interest of such partic- claims at a reasonable rate, the Adminis- whether it believes any person will or has be- ipant; or trator shall adopt guidelines establishing a come a successor in interest to the partici- (ii) with respect to a transaction (or series medical screening program for individuals at pant for purposes of this Act and, if so, the of transactions) referenced in clause (ii) of high risk of asbestos-related disease result- identity of that person; and subparagraph (A)— ing from an asbestos-related disease. In pro- (ii) a statement by the participant as to (I) a temporary restraining order or a pre- mulgating such guidelines, the Adminis- whether that person has acknowledged that liminary or permanent injunction against trator shall consider the views of the Advi- it will or has become a successor in interest such transaction (or series of transactions); sory Committee on Asbestos Disease Com- for purposes of this Act. or pensation, the Medical Advisory Committee, (4) DEFINITION.—In this subsection, the (II) such other relief regarding such trans- and the public. term ‘‘significant portion of the assets, prop- action (or series of transactions) as the court (2) ELIGIBILITY CRITERIA.— erties or business of a participant’’ means as- determines to be necessary to ensure that (A) IN GENERAL.—The guidelines promul- sets (including, without limitation, tangible performance of a participant’s payment obli- gated under this subsection shall establish or intangible assets, securities and cash), gations under this Act is not materially im- criteria for participation in the medical properties or business of such participant (or paired by reason of such transaction (or se- screening program. its affiliated group, to the extent that the ries of transactions). (B) CONSIDERATIONS.—In promulgating eli- participant has elected to be part of an affili- (C) APPLICABILITY.—If the Administrator gibility criteria the Administrator shall ated group under section 204(g)) that, to- or a participant wishes to challenge a state- take into consideration all factors relevant gether with any other asset, property or ment made by a participant that a person to the individual’s effective cumulative ex- business transferred by such participant in will not or has not become a successor in in- posure to asbestos, including— any of the previous completed 5 fiscal years terest for purposes of this Act, then this (i) any industry in which the individual of such participant (or, as appropriate, its af- paragraph shall be the exclusive means by worked; filiated group), and as determined in accord- which the determination of whether such (ii) the individual’s occupation and work ance with United States generally accepted person will or has become a successor in in- setting; accounting principles as in effect from time terest of the participant shall be made. This (iii) the historical period in which exposure to time— paragraph shall not preempt any other took place; (A) generated at least 40 percent of the rev- rights of any person under applicable Federal (iv) the duration of the exposure; enues of such participant (or its affiliated or State law. (v) the intensity and duration of non-occu- group); (D) VENUE.—Any action under this para- pational exposures; (B) constituted at least 40 percent of the graph shall be brought in any appropriate (vi) the intensity and duration of exposure assets of such participant (or its affiliated United States district court or, to the extent to risk levels of naturally occurring asbestos group); necessary to obtain complete relief, any as defined by the Environmental Protection (C) generated at least 40 percent of the op- other appropriate forum outside of the Agency; and erating cash flows of such participant (or its United States. (vii) any other factors that the Adminis- affiliated group); or (7) RULES AND REGULATIONS.—The Adminis- trator determines relevant. (D) generated at least 40 percent of the net trator may promulgate regulations to effec- (3) PROTOCOLS.—The guidelines developed income or loss of such participant (or its af- tuate the intent of this subsection, including under this subsection shall establish proto- filiated group), regulations relating to the form, timing and cols for medical screening, which shall in- as measured during any of such 5 previous content of notices. clude— fiscal years. SEC. 224. INTEREST ON UNDERPAYMENT OR NON- (A) administration of a health evaluation (5) CONSUMMATION OF TRANSACTION.—Any PAYMENT. and work history questionnaire; proposed transaction (or proposed series of If any amount of payment obligation under (B) an evaluation of smoking history; transactions) with respect to which a partic- this title is not paid on or before the last (C) a physical examination by a qualified ipant is required to provide notice under date prescribed for payment, the liable party physician with a doctor-patient relationship paragraph (1) may not be consummated until shall pay interest on such amount at the with the individual; at least 30 days after delivery to the Admin- Federal short-term rate determined under (D) a chest x-ray read by a certified B-read- istrator of such notice, unless the Adminis- section 6621(b) of the Internal Revenue Code er as defined under section 121(a)(4); and trator shall earlier terminate the notice pe- of 1986, plus 5 percentage points, for the pe- (E) pulmonary function testing as defined riod. The Administrator shall endeavor riod from such last date to the date paid. under section 121(a)(13). whenever possible to terminate a notice pe- SEC. 225. EDUCATION, CONSULTATION, SCREEN- (4) FREQUENCY.—The Administrator shall riod at the earliest practicable time. ING, AND MONITORING. establish the frequency with which medical (6) RIGHT OF ACTION.— (a) IN GENERAL.—The Administrator shall screening shall be provided or be made avail- (A) IN GENERAL.—Notwithstanding section establish a program for the education, con- able to eligible individuals, which shall be 221(f), if the Administrator or any partici- sultation, medical screening, and medical not less than every 5 years. pant believes that a participant proposes to monitoring of persons with exposure to as- (5) PROVISION OF SERVICES.—The Adminis- engage or has engaged, directly or indirectly, bestos. The program shall be funded by the trator shall provide medical screening to eli- in, or is the subject of, a transaction (or se- Fund. gible individuals directly or by contract with ries of transactions)— (b) OUTREACH AND EDUCATION.— another agency of the Federal Government,

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with State or local governments, or with pri- (iv) spirometry performed according to (1) ESTABLISHMENT.—The Administrator vate providers of medical services. The Ad- ATS standards; shall make available $1,000,000 from the ministrator shall establish strict qualifica- (B) qualifications of medical providers who Fund, and the Director of the National Insti- tions for the providers of such services, and are to provide the tests required under sub- tutes of Health shall make available shall periodically audit the providers of serv- paragraph (A); and $1,000,000 from amounts available to the Di- ices under this subsection, to ensure their in- (C) administrative provisions for reim- rector, for each of fiscal years 2006 through tegrity, high degree of competence, and com- bursement from the Fund of the costs of 2015 for the establishment, maintenance, and pliance with all applicable technical and pro- monitoring eligible claimants, including the operation of a National Mesothelioma Reg- fessional standards. No provider of medical costs associated with the visits of the claim- istry to collect data regarding symptoms, screening services may have earned more ants to physicians in connection with med- pathology, evaluation, treatment, outcomes, than 15 percent of their income from the pro- ical monitoring, and with the costs of per- and quality of life and a Tissue Bank to in- vision of services of any kind in connection forming and analyzing the tests. clude the pre- and post-treatment blood with asbestos litigation in any of the 3 years (f) CONTRACTS.—The Administrator may (serum and blood cells) specimens as well as preceding the date of enactment of this Act. enter into contracts with qualified program tissue specimens from biopsies and surgery. All contracts with providers of medical providers that would permit the program Not less than $500,000 of the amount made screening services under this subsection providers to undertake large-scale medical available under the preceding sentence in shall contain provisions for reimbursement screening and medical monitoring programs each fiscal year shall be allocated for the of screening services at a reasonable rate and by means of subcontracts with a network of collection and maintenance of tissue speci- termination of such contracts for cause if medical providers, or other health providers. mens. the Administrator determines that the serv- (g) REVIEW.—Not later than 5 years after (2) REQUIREMENTS.—The Director of the ice provider fails to meet the qualifications the date of enactment of this Act, and every National Institutes of Health, with the ad- established under this subsection. 5 years thereafter, the Administrator shall vice and consent of the Medical Advisory (6) LIMITATION OF COMPENSATION FOR SERV- review, and if necessary update, the proto- Committee, shall conduct a competitive peer ICES.—The compensation required to be paid cols and procedures established under this review process to select a site to administer to a provider of medical screening services section. the Registry and Tissue Bank described in for such services furnished to an eligible in- paragraph (1). The Director shall ensure that SEC. 226. NATIONAL MESOTHELIOMA RESEARCH the site selected under this paragraph— dividual shall be limited to the amount that AND TREATMENT PROGRAM. (A) is available to all mesothelioma pa- would be reimbursed at the time of the fur- (a) IN GENERAL.—There is established the nishing of such services under title XVIII of tients and qualifying physicians throughout National Mesothelioma Research and Treat- the United States; the Social Security Act (42 U.S.C. 1395 et ment Program (referred to in this section as seq.) for similar services if such services are (B) is subject to all applicable medical and the ‘‘Program’’) to investigate and advance patient privacy laws and regulations; covered under title XVIII of the Social Secu- the detection, prevention, treatment, and rity Act (42 U.S.C. 1395 et seq.). (C) is carrying out activities to ensure that cure of malignant mesothelioma. data is accessible via the Internet; and (7) FUNDING; PERIODIC REVIEW.— (b) MESOTHELIOMA CENTERS.— (D) provides data and tissue samples to (A) FUNDING.—The Administrator shall (1) IN GENERAL.—The Administrator shall make such funds available from the Fund to qualifying researchers and physicians who make available $1,500,000 from the Fund, and apply for such data in order to further the implement this section, with a minimum of the Director of the National Institutes of understanding, prevention, screening, diag- $5,000,000 but not more than $10,000,000 each Health shall make available $1,000,000 from nosis, or treatment of malignant mesothe- year in each of the 5 years following the ef- amounts available to the Director, for each lioma. fective date of the medical screening pro- of fiscal years 2006 through 2015, for the es- (d) CENTER FOR MESOTHELIOMA EDU- gram. Notwithstanding the preceding sen- tablishment of each of 10 mesothelioma dis- CATION.— tence, the Administrator shall suspend the ease research and treatment centers. (1) ESTABLISHMENT.—The Administrator operation of the program or reduce its fund- (2) REQUIREMENTS.—The Director of the shall make available $1,000,000 from the ing level if necessary to preserve the sol- National Institutes of Health, in consulta- Fund, and the Director of the National Insti- vency of the Fund. tion with the Medical Advisory Committee, tutes of Health shall make available (B) REVIEW.—The Administrator may re- shall conduct a competitive peer review $1,000,000 from amounts available to the Di- duce the amount of funding below $5,000,000 process to select sites for the centers de- rector, for each of fiscal years 2006 through each year if the program is fully imple- scribed in paragraph (1). The Director shall 2015 for the establishment, with the advice mented. The Administrator’s first annual re- ensure that sites selected under this para- and consent of the Medical Advisory Com- port under section 405 following the close of graph are— mittee, of a Center for Mesothelioma Edu- the 4th year of operation of the medical (A) geographically distributed throughout cation (referred to in this section as the screening program shall include an analysis the United States with special consideration ‘‘Center’’) to— of the usage of the program, its cost and ef- given to areas of high incidence of mesothe- (A) promote mesothelioma awareness and fectiveness, its medical value, and the need lioma disease; education; to continue that program for an additional 5- (B) closely associated with Department of (B) assist mesothelioma patients and their year period. The Administrator shall also Veterans Affairs medical centers, in order to family members in obtaining necessary in- recommend to Congress any improvements provide research benefits and care to vet- formation; and that may be required to make the program erans who have suffered excessively from (C) work with the centers established more effective, efficient, and economical, mesothelioma; under subsection (b) in advancing mesothe- and shall recommend a funding level for the (C) engaged in exemplary laboratory and lioma research. program for the 5 years following the period clinical mesothelioma research, including (2) ACTIVITIES.—The Center shall— of initial funding referred to under subpara- clinical trials, to provide mechanisms for ef- (A) educate the public about the new ini- graph (A). fective therapeutic treatments, as well as de- tiatives contained in this section through a (d) LIMITATION.—In no event shall the total tection and prevention, particularly in areas National Mesothelioma Awareness Cam- amount allocated to the medical screening of palliation of disease symptoms and pain paign; program established under this subsection management; (B) develop and maintain a Mesothelioma over the lifetime of the Fund exceed (D) participants in the National Mesothe- Educational Resource Center (referred to in $100,000,000. lioma Registry and Tissue Bank under sub- this section as the ‘‘MERCI’’), that is acces- (e) MEDICAL MONITORING PROGRAM AND section (c) and the annual International sible via the Internet, to provide mesothe- PROTOCOLS.— Mesothelioma Symposium under subsection lioma patients, family members, and front- (1) IN GENERAL.—The Administrator shall (d)(2)(E); line physicians with comprehensive, current establish procedures for a medical moni- (E) with respect to research and treatment information on mesothelioma and its treat- toring program for persons exposed to asbes- efforts, coordinated with other centers and ment, as well as on the existence of, and gen- tos who have been approved for level I com- institutions involved in exemplary mesothe- eral claim procedures for the Asbestos Injury pensation under section 131. lioma research and treatment; Claims Resolution Fund; (2) PROCEDURES.—The procedures for med- (F) able to facilitate transportation and (C) through the MERCI and otherwise, edu- ical monitoring shall include— lodging for mesothelioma patients, so as to cate mesothelioma patients, family mem- (A) specific medical tests to be provided to enable patients to participate in the newest bers, and front-line physicians about, and en- eligible individuals and the periodicity of developing treatment protocols, and to en- courage such individuals to participate in, those tests, which shall initially be provided able the centers to recruit patients in num- the centers established under subsection (b), every 3 years and include— bers sufficient to conduct necessary clinical the Registry and the Tissue Bank; (i) administration of a health evaluation trials; and (D) complement the research efforts of the and work history questionnaire; (G) nonprofit hospitals, universities, or centers established under subsection (b) by (ii) physical examinations, including blood medical or research institutions incor- awarding competitive, peer-reviewed grants pressure measurement, chest examination, porated or organized in the United States. for the training of clinical specialist fellows and examination for clubbing; (c) MESOTHELIOMA REGISTRY AND TISSUE in mesothelioma, and for highly innovative, (iii) AP and lateral chest x-ray; and BANK.— experimental or pre-clinical research; and

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(E) conduct an annual International Meso- the Administrator awarding or denying com- (2) LEGAL CHALLENGES.—No court may thelioma Symposium. pensation under title I may petition for judi- issue a stay or injunction pending final judi- (3) REQUIREMENTS.—The Center shall— cial review of such decision. Any petition for cial action, including the exhaustion of all (A) be a nonprofit corporation under sec- review under this section shall be filed with- appeals, on a legal challenge to this Act or tion 501(c)(3) of the Internal Revenue Code of in 90 days of the issuance of a final decision any portion of this Act. 1986; of the Administrator. (b) EXCLUSIVITY OF REVIEW.—An action of (B) be a separate entity from and not an af- (b) EXCLUSIVE JURISDICTION.—A petition the Administrator or the Asbestos Insurers filiate of any hospital, university, or medical for review may only be filed in the United Commission for which review could have or research institution; and States Court of Appeals for the circuit in been obtained under section 301, 302, or 303 (C) demonstrate a history of program which the claimant resides at the time of the shall not be subject to judicial review in any spending that is devoted specifically to the issuance of the final order. other proceeding. (c) STANDARD OF REVIEW.—The court shall mission of extending the survival of current (c) CONSTITUTIONAL REVIEW.— uphold the decision of the Administrator un- and future mesothelioma patients, including (1) IN GENERAL.—The United States Dis- a history of soliciting, peer reviewing less the court determines, upon review of the trict Court for the District of Columbia shall through a competitive process, and funding record as a whole, that the decision is not have exclusive jurisdiction over any action research grant applications relating to the supported by substantial evidence, is con- challenging the constitutionality of any pro- detection, prevention, treatment, and cure of trary to law, or is not in accordance with vision or application of this Act. The fol- mesothelioma. procedure required by law. lowing rules shall apply: (d) EXPEDITED PROCEDURES.—The United (4) CONTRACTS FOR OVERSIGHT.—The Direc- (A) The action shall be filed in the United States Court of Appeals shall provide for ex- tor of the National Institutes of Health may States District Court for the District of Co- pedited procedures for reviews under this enter into contracts with the Center for the lumbia and shall be heard by a 3-judge court section. selection and oversight of the centers estab- convened under section 2284 of title 28, lished under subsection (b), or selection of SEC. 303. JUDICIAL REVIEW OF PARTICIPANTS’ United States Code. ASSESSMENTS. the director of the Registry and the Tissue (B) A final decision in the action shall be Bank under subsection (c) and oversight of (a) EXCLUSIVE JURISDICTION.—The United States Court of Appeals for the District of reviewable only by appeal directly to the Su- the Registry and the Tissue Bank. preme Court of the United States. Such ap- (e) REPORT AND RECOMMENDATIONS.—Not Columbia Circuit shall have exclusive juris- diction over any action to review a final de- peal shall be taken by the filing of a notice later than September 30, 2015, The Director of appeal within 10 days, and the filing of a of the National Institutes of Health shall, termination by the Administrator or the As- bestos Insurers Commission regarding the li- jurisdictional statement within 30 days, after opportunity for public comment and re- after the entry of the final decision. view, publish and provide to Congress a re- ability of any person to make a payment to the Fund, including a notice of applicable (C) It shall be the duty of the United port and recommendations on the results States District Court for the District of Co- achieved and information gained through the subtier assignment under section 204(j), a no- tice of financial hardship or inequity deter- lumbia and the Supreme Court of the United Program, including— States to advance on the docket and to expe- (1) information on the status of mesothe- mination under section 204(e), a notice of a distributor’s adjustment under section dite to the greatest possible extent the dis- lioma as a national health issue, including— position of the action and appeal. (A) annual United States incidence and 204(n), and a notice of insurer participant ob- ligation under section 212(b). (2) REPAYMENT TO ASBESTOS TRUST AND death rate information and whether such CLASS ACTION TRUST.—If the transfer of the rates are increasing or decreasing; (b) PERIOD FOR FILING ACTION.—A petition for review under subsection (a) shall be filed assets of any asbestos trust of a debtor or (B) the average prognosis; and any class action trust (or this Act as a (C) the effectiveness of treatments and not later than 60 days after a final deter- mination by the Administrator or the Com- whole) is held to be unconstitutional or oth- means of prevention; erwise unlawful, the Fund shall transfer the (2) promising advances in mesothelioma mission giving rise to the action. Any de- fendant participant who receives a notice of remaining balance of such assets (deter- treatment and research which could be fur- mined under section 405(f)(1)(A)(iii)) back to ther developed if the Program is reauthor- its applicable subtier under section 204(j), a notice of financial hardship or inequity de- the appropriate asbestos trust or class action ized; and trust within 90 days after final judicial ac- (3) a summary of advances in mesothe- termination under section 204(e), or a notice of a distributor’s adjustment under section tion on the legal challenge, including the ex- lioma treatment made in the 10-year period haustion of all appeals. prior to the report and whether those ad- 204(n), shall commence any action within 30 vances would justify continuation of the days after a decision on rehearing under sec- TITLE IV—MISCELLANEOUS PROVISIONS Program and whether it should be reauthor- tion 204(j)(10), and any insurer participant SEC. 402. EFFECT ON BANKRUPTCY LAWS. who receives a notice of a payment obliga- ized for an additional 10 years. (a) NO AUTOMATIC STAY.—Section 362(b) of tion under section 212(b) shall commence any (f) SEVERABILITY.—If any provision of this title 11, United States Code, is amended— action within 30 days after receiving such Act, or amendment made by this Act, or the (1) in paragraph (17), by striking ‘‘or’’ at notice. The court shall give such action ex- application of such provision or amendment the end; pedited consideration. to any person or circumstance is held to be (2) in paragraph (18), by striking the period unconstitutional, the remainder of this Act SEC. 304. OTHER JUDICIAL CHALLENGES. at the end and inserting ‘‘; or’’; and (a) EXCLUSIVE JURISDICTION.—The United (including this section), the amendments (3) by inserting after paragraph (18) the fol- States District Court for the District of Co- made by this Act, and the application of the lowing: lumbia shall have exclusive jurisdiction over provisions of such to any person or cir- ‘‘(19) under subsection (a) of this section of any action for declaratory or injunctive re- cumstance shall not be affected thereby. the enforcement of any payment obligations (g) REGULATIONS.—The Director of the Na- lief challenging any provision of this Act. An under section 204 of the Fairness in Asbestos tional Institutes of Health shall promulgate action under this section shall be filed not Injury Resolution Act of 2006, against a debt- regulations to provide for the implementa- later than 60 days after the date of enact- or, or the property of the estate of a debtor, tion of this section. ment of this Act or 60 days after the final ac- that is a participant (as that term is defined tion by the Administrator or the Commis- TITLE III—JUDICIAL REVIEW in section 3 of that Act).’’. sion giving rise to the action, whichever is SEC. 301. JUDICIAL REVIEW OF RULES AND REG- (b) ASSUMPTION OF EXECUTORY CONTRACT.— ULATIONS. later. (b) DIRECT APPEAL.—A final decision in the Section 365 of title 11, United States Code, is (a) EXCLUSIVE JURISDICTION.—The United amended by adding at the end the following: States Court of Appeals for the District of action shall be reviewable on appeal directly ‘‘(p) If a debtor is a participant (as that Columbia Circuit shall have exclusive juris- to the Supreme Court of the United States. term is defined in section 3 of the Fairness in diction over any action to review rules or Such appeal shall be taken by the filing of a Asbestos Injury Resolution Act of 2006), the regulations promulgated by the Adminis- notice of appeal within 30 days, and the fil- trustee shall be deemed to have assumed all trator or the Asbestos Insurers Commission ing of a jurisdictional statement within 60 executory contracts entered into by the par- under this Act. days, of the entry of the final decision. ticipant under section 204 of that Act. The (b) PERIOD FOR FILING PETITION.—A peti- (c) EXPEDITED PROCEDURES.—It shall be the tion for review under this section shall be duty of the United States District Court for trustee may not reject any such executory filed not later than 60 days after the date no- the District of Columbia and the Supreme contract.’’. tice of such promulgation appears in the Court of the United States to advance on the (c) ALLOWED ADMINISTRATIVE EXPENSES.— Federal Register. docket and to expedite to the greatest pos- Section 503 of title 11, United States Code, is (c) EXPEDITED PROCEDURES.—The United sible extent the disposition of the action and amended by adding at the end the following: States Court of Appeals for the District of appeal. ‘‘(c)(1) Claims or expenses of the United Columbia shall provide for expedited proce- SEC. 305. STAYS, EXCLUSIVITY, AND CONSTITU- States, the Attorney General, or the Admin- dures for reviews under this section. TIONAL REVIEW. istrator (as that term is defined in section 3 SEC. 302. JUDICIAL REVIEW OF AWARD DECI- (a) NO STAYS.— of the Fairness in Asbestos Injury Resolu- SIONS. (1) PAYMENTS.—No court may issue a stay tion Act of 2006) based upon the asbestos pay- (a) IN GENERAL.—Any claimant adversely of payment by any party into the Fund pend- ment obligations of a debtor that is a Partic- affected or aggrieved by a final decision of ing its final judgment. ipant (as that term is defined in section 3 of

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The debtor shall not be en- purposes of the Fund under section 221 of tos Injury Resolution Act of 2006, except titled to either notice or a hearing with re- such Act, including the payment of claims that, notwithstanding any provision of the spect to such claims. for awards under such Act to beneficiaries of distribution plan of the trust to the con- ‘‘(2) For purposes of paragraph (1), the the trust from which the assets were trans- trary, the trust shall not accept the results term ‘asbestos payment obligation’ means ferred. of a DLCO test (as such test is defined in sec- any payment obligation under title II of the ‘‘(ii) Notwithstanding clause (i), and except tion 121(a) of the Fairness in Asbestos Injury Fairness in Asbestos Injury Resolution Act as provided under subparagraphs (B), (C), and Resolution Act of 2006) for the purpose of of 2006.’’. (E), any trust established to provide com- demonstrating respiratory impairment; and (d) NO DISCHARGE.—Section 523 of title 11, pensation for asbestos claims (as defined in ‘‘(ee) for any of the cancers listed in sec- United States Code, is amended by adding at section 3 of the Fairness in Asbestos Injury tion 121(d)(6) of the Fairness in Asbestos In- the end the following: Resolution Act of 2006), other than a trust jury Resolution Act of 2006 does not seek, ‘‘(f) A discharge under section 727, 1141, established under a reorganization plan sub- and the trust does not pay, any compensa- 1228, or 1328 of this title does not discharge ject to section 202(c) of that Act, shall trans- tion until such time as the Institute of Medi- any debtor that is a participant (as that fer the assets in such trust to the Fund as cine finds that there is a causal relationship term is defined in section 3 of the Fairness in follows: between asbestos exposure and such cancer, Asbestos Injury Resolution Act of 2006) of ‘‘(I) In the case of a trust established on or in which case such claims may be paid if the debtor’s payment obligations assessed before December 31, 2005, such trust shall such claims otherwise qualify for compensa- against the participant under title II of that transfer 90 percent of the assets in such trust tion under the distribution plan of the trust Act.’’. to the Fund not later than 90 days after the as of the date of enactment of the Fairness (e) PAYMENT.—Section 524 of title 11, date of enactment of the Fairness in Asbes- in Asbestos Injury Resolution Act of 2006. United States Code, is amended by adding at tos Injury Resolution Act of 2006. ‘‘(II) The trust shall not accept medical the end the following: ‘‘(II) In the case of a trust established after evidence from any physician, medical facil- ‘‘(i) PARTICIPANT DEBTORS.— December 31, 2005, such trust shall transfer ity, or laboratory whose evidence would be ‘‘(1) IN GENERAL.—Paragraphs (2) and (3) 88 percent of the assets in such trust to the not be accepted as evidence— shall apply to a debtor who— Fund not later than 90 days after the date of ‘‘(aa) under the Manville Trust as of the ‘‘(A) is a participant that has made prior enactment of the Fairness in Asbestos Injury date of enactment of the Fairness in Asbes- asbestos expenditures (as such terms are de- Resolution Act of 2006. tos Injury Resolution Act of 2006; or fined in the Fairness in Asbestos Injury Res- ‘‘(iii) Not later than 90 days after the date ‘‘(bb) by the Administrator under section olution Act of 2006); and on which the Administrator of the Office of 115(a)(2) of such Act. ‘‘(B) is subject to a case under this title Asbestos Disease Compensation (referred to ‘‘(III) The trust shall not amend its sched- that is pending— in this section as the ‘Administrator’) cer- uled payment amount or payment percent- ‘‘(i) on the date of enactment of the Fair- tifies in accordance with section age as in effect on the date of enactment of ness in Asbestos Injury Resolution Act of 106(f)(3)(E)(ii) of the Fairness in Asbestos In- the Fairness in Asbestos Injury Resolution 2006; or jury Resolution Act of 2006 that the Fund is Act of 2006. ‘‘(ii) at any time during the 1-year period fully operational and paying all valid asbes- ‘‘(IV) The trust shall not amend its eligi- preceding the date of enactment of that Act. tos claims at a reasonable rate, any trust bility criteria after the date of enactment of ‘‘(2) TIER I DEBTORS.—A debtor that has transferring assets under clause (ii) shall the Fairness in Asbestos Injury Resolution been assigned to Tier I under section 202 of transfer all remaining assets in such trust to Act of 2006, except to conform any criteria in the Fairness in Asbestos Injury Resolution the Fund. The transfer required by this any category under the distribution plan of Act of 2006, shall make payments in accord- clause shall not include any trust assets the trust with related criteria in a related ance with sections 202 and 203 of that Act. needed to pay— category under section 121 of the Fairness in ‘‘(3) TREATMENT OF PAYMENT OBLIGA- ‘‘(I) previously incurred expenses; or Asbestos Injury Resolution Act of 2006. TIONS.—All payment obligations of a debtor ‘‘(II) claims determined to be eligible for ‘‘(V) The trust shall notify the Adminis- under sections 202 and 203 of the Fairness in compensation under clause (vi). trator of the Fund of any claim determined Asbestos Injury Resolution Act of 2006 ‘‘(iv) Except as provided under subpara- to be eligible for compensation after the date shall— graph (B), the Administrator of the Fund of enactment of the Fairness in Asbestos In- ‘‘(A) constitute costs and expenses of ad- shall accept any assets transferred under jury Resolution Act of 2006, and the amount ministration of a case under section 503 of clauses (ii) or (iii) and utilize them for any of any such compensation awarded to the this title; purposes for the Fund under section 221 of claimant of such claim. The notification re- ‘‘(B) notwithstanding any case pending the Fairness in Asbestos Injury Resolution quired by this subclause shall be made in under this title, be payable in accordance Act of 2006, including the payment of claims such form as the Administrator shall re- with section 202 of that Act; for awards under such Act to beneficiaries of quire, and not later than 15 days after the ‘‘(C) not be stayed; the trust from which the assets were trans- date the determination is made. ‘‘(D) not be affected as to enforcement or ferred. ‘‘(VI) The trust shall not pay any claim collection by any stay or injunction of any ‘‘(v) Notwithstanding any other provision without a certification by a claimant, sub- court; and of Federal or State law, no liability of any ject to the penalties described in the Fair- ‘‘(E) not be impaired or discharged in any kind may be imposed on a trustee of a trust ness in Asbestos Injury Resolution Act of current or future case under this title.’’. for transferring assets to the Fund in accord- 2006, stating the amount of collateral source (f) TREATMENT OF TRUSTS.—Section 524 of ance with clause (i). compensation that such claimant has re- title 11, United States Code, as amended by ‘‘(vi) Any trust transferring assets under ceived, or is entitled to receive, under sec- this Act, is amended by adding at the end clause (ii) shall be subject to the following tion 134 of the Fairness in Asbestos Injury the following: requirements: Resolution Act of 2006. In the event that col- ‘‘(j) ASBESTOS TRUSTS.— ‘‘(I) The trust may continue to process as- lateral source compensation exceeds the ‘‘(1) IN GENERAL.—A trust shall assign a bestos claims, make eligibility determina- amount that a claimant would be paid in the portion of the corpus of the trust to the As- tions, and pay claims in a manner consistent category under that Act that is most nearly bestos Injury Claims Resolution Fund (re- with this clause if a claimant— similar to the claimant’s claim under the ferred to in this subsection as the ‘Fund’) as ‘‘(aa) has a pending asbestos claim as of distribution plan of the trust, the aggregate established under the Fairness in Asbestos the date of enactment of the Fairness in As- value of the awards received by the claimant Injury Resolution Act of 2006 if the trust bestos Injury Resolution Act of 2006; shall be reduced pro rata so that the claim- qualifies as a ‘trust’ under section 201 of that ‘‘(bb) provides to the trust a copy of a bind- ant’s total compensation does not exceed Act. ing election submitted to Administrator what would be paid for such a condition ‘‘(2) TRANSFER OF TRUST ASSETS.— waiving the right to secure compensation under the Fairness in Asbestos Injury Reso- ‘‘(A) IN GENERAL.— under section 106(f)(2) of the Fairness in As- lution Act of 2006, excluding any adjust- ‘‘(i) Except as provided under clause (ii) of bestos Injury Resolution Act of 2006, unless ments under section 131(b)(3) and (4) of that this subparagraph and subparagraphs (B), the claimant is permitted under section Act. (C), and (E), the assets in any trust estab- 106(f)(2)(B) of such Act to seek a judgment or ‘‘(VII) Upon finding that the trust has lished to provide compensation for asbestos order for monetary damages from a Federal breached any condition or conditions of this claims (as defined in section 3 of the Fair- or State court; clause, the Administrator shall require the ness in Asbestos Injury Resolution Act of ‘‘(cc) meets the requirements for com- immediate payment of remaining trust as- 2006) shall be transferred to the Fund not pensation under the distribution plan for the sets into the Fund in accordance with sec- later than 90 days after the date of enact- trust as of the date of enactment of the Fair- tion 402(f) of the Fairness in Asbestos Injury ment of the Fairness in Asbestos Injury Res- ness in Asbestos Injury Resolution Act of Resolution Act of 2006. The Administrator olution Act of 2006 or 30 days following fund- 2006; shall be entitled to an injunction against ing of a trust established under a reorganiza- ‘‘(dd) for any non-malignant condition sat- further payments of nonliquidated claims tion plan subject to section 202(c) of that isfies the medical criteria under the distribu- from the assets of the trust during the pend- Act. Except as provided under subparagraph tion plan for the trust that is most nearly ency of any dispute regarding the findings of (B), the Administrator of the Fund shall ac- equivalent to the medical criteria described noncompliance by the Administrator. The

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00167 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1302 CONGRESSIONAL RECORD — SENATE February 14, 2006 court in which any action to enforce the ob- dividual is constitutionally entitled to just powers of a receiver or a court in or relating ligations of the trust is pending shall afford compensation; or to an insurance receivership proceeding. the action expedited consideration. ‘‘(ii) requiring the transfer back to a trust (j) STANDING IN BANKRUPTCY PRO- ‘‘(B) AUTHORITY TO REFUSE ASSETS.—The of any or all assets transferred by that trust CEEDINGS.—The Administrator shall have Administrator of the Fund may refuse to ac- to the Fund. standing in any bankruptcy case involving a cept any asset that the Administrator deter- ‘‘(4) JURISDICTION.—Solely for purposes of debtor participant. No bankruptcy court mines may create liability for the Fund in implementing this subsection, personal ju- may require the Administrator to return excess of the value of the asset. risdiction over every covered trust, the property seized to satisfy obligations to the ‘‘(C) ALLOCATION OF TRUST ASSETS.—If a trustees thereof, and any other necessary Fund. trust under subparagraph (A) has bene- party, and exclusive subject matter jurisdic- SEC. 403. EFFECT ON OTHER LAWS AND EXISTING ficiaries with claims that are not asbestos tion over every question arising out of or re- CLAIMS. claims, the assets transferred to the Fund lated to this subsection, shall be vested in (a) EFFECT ON FEDERAL AND STATE LAW.— under subparagraph (A) shall not include as- the United States District Court for the Dis- The provisions of this Act shall supersede sets allocable to such beneficiaries. The trict of Columbia. Notwithstanding any any Federal or State law insofar as such law trustees of any such trust shall determine other provision of law, including section 1127 may relate to any asbestos claim, including any claim described under subsection (e)(2). the amount of such trust assets to be re- of this title, that court may make any order (b) EFFECT ON SILICA CLAIMS.— served for the continuing operation of the necessary and appropriate to facilitate (1) IN GENERAL.— trust in processing and paying claims that prompt compliance with this subsection, in- (A) RULE OF CONSTRUCTION.—Nothing in are not asbestos claims. The trustees shall cluding assuming jurisdiction over and modi- demonstrate to the satisfaction of the Ad- this Act shall be construed to preempt, bar, fying, to the extent necessary, any applica- or otherwise preclude any personal injury ministrator, or by clear and convincing evi- ble confirmation order or other order with dence in a proceeding brought before the claim attributable to exposure to silica as to continuing and prospective application to a which the plaintiff— United States District Court for the District covered trust. The court may also resolve of Columbia in accordance with paragraph (i) pleads with particularity and estab- any related challenge to the constitu- lishes by a preponderance of evidence either (4), that the amount reserved is properly al- tionality of this subsection or of its applica- locable to claims other than asbestos claims. that— tion to any trust, trustee, or individual (I) no claim has been asserted or filed by or ‘‘(D) SALE OF FUND ASSETS.—The invest- claimant. The Administrator of the Fund ment requirements under section 222 of the with respect to the exposed person in any may bring an action seeking such an order or forum for any asbestos-related condition and Fairness in Asbestos Injury Resolution Act modification, under the standards of rule of 2006 shall not be construed to require the the exposed person (or another claiming on 60(b) of the Federal Rules of Civil Procedure behalf of or through the exposed person) is Administrator of the Fund to sell assets or otherwise, and shall be entitled to inter- transferred to the Fund under subparagraph not eligible for any monetary award under vene as of right in any action brought by any this Act; or (A). other party seeking interpretation, applica- ‘‘(E) LIQUIDATED CLAIMS.—Except as spe- (II)(aa) the exposed person suffers or has tion, or invalidation of this subsection. Any suffered a functional impairment that was cifically provided in this subparagraph, all order denying relief that would facilitate asbestos claims against a trust are super- caused by exposure to silica; and prompt compliance with the transfer provi- seded and preempted as of the date of enact- (bb) asbestos exposure was not a substan- sions of this subsection shall be subject to ment of the Fairness in Asbestos Injury Res- tial contributing factor to such functional immediate appeal under section 304 of the olution Act of 2006, and a trust shall not impairment; and Fairness in Asbestos Injury Resolution Act make any payment relating to asbestos (ii) satisfies the requirements of paragraph of 2006. claims after that date. If, in the ordinary (2) . course and the normal and usual administra- (g) NO AVOIDANCE OF TRANSFER.—Section (B) PREEMPTION.—Claims attributable to tion of the trust consistent with past prac- 546 of title 11, United States Code, is amend- exposure to silica that fail to meet the re- tices, a trust had before the date of enact- ed by adding at the end the following: quirements of subparagraph (A) shall be pre- ment of the Fairness in Asbestos Injury Res- ‘‘(h) Notwithstanding the rights and pow- empted by this Act. olution Act of 2006, made all determinations ers of a trustee under sections 544, 545, 547, (2) REQUIRED EVIDENCE.— necessary to entitle an individual claimant 548, 549, and 550 of this title, if a debtor is a (A) IN GENERAL.—In any claim to which to a noncontingent cash payment from the participant (as that term is defined in sec- paragraph (1) applies, the initial pleading trust, the trust shall (i) make any lump-sum tion 3 of the Fairness in Asbestos Injury Res- (or, for claims pending on the date of enact- cash payment due to that claimant, and (ii) olution Act of 2006), the trustee may not ment of this Act, an amended pleading to be make or provide for all remaining non- avoid a transfer made by the debtor under its filed within 60 days after such date, but not contingent payments on any award being payment obligations under section 202 or 203 later than 60 days before trial, shall plead paid or scheduled to be paid on an install- of that Act.’’. with particularity the elements of subpara- ment basis, in each case only to the same ex- (h) CONFIRMATION OF PLAN.—Section 1129(a) graph (A)(i)(I) or (II) and shall be accom- tent that the trust would have made such of title 11, United States Code, is amended by panied by the information described under cash payments in the ordinary course and adding at the end the following: subparagraph (B)(i) through (iv). consistent with past practices before enact- ‘‘(14) If the debtor is a participant (as that (B) PLEADINGS.—If the claim pleads the ment of that Act. A trust shall not make any term is defined in section 3 of the Fairness in elements of paragraph (1)(A)(i)(II) and by the payment in respect of any alleged contingent Asbestos Injury Resolution Act of 2006), the information described under clauses (i) right to recover any greater amount than plan provides for the continuation after its through (iv) of this subparagraph if the the trust had already paid, or had completed effective date of payment of all payment ob- claim pleads the elements of paragraph all determinations necessary to pay, to a ligations under title II of that Act.’’. (1)(A)(i)(I)— claimant in cash in accordance with its ordi- (i) EFFECT ON INSURANCE RECEIVERSHIP (i) admissible evidence, including at a min- nary distribution procedures in effect as of PROCEEDINGS.— imum, a B-reader’s report, the underlying x- June 1, 2003. (1) LIEN.—In an insurance receivership pro- ray film and such other evidence showing ‘‘(3) INJUNCTION.— ceeding involving a direct insurer, reinsurer that the claim may be maintained and is not ‘‘(A) IN GENERAL.—Any injunction issued as or runoff participant, there shall be a lien in preempted under paragraph (1); part of the formation of a trust described in favor of the Fund for the amount of any as- (ii) notice of any previous lawsuit or claim paragraph (1) shall remain in full force and sessment and any such lien shall be given for benefits in which the exposed person, or effect. No court, Federal or State, may en- priority over all other claims against the another claiming on behalf of or through the join the transfer of assets by a trust to the participant in receivership, except for the injured person, asserted an injury or dis- Fund in accordance with this subsection expenses of administration of the receiver- ability based wholly or in part on exposure pending resolution of any litigation chal- ship and the perfected claims of the secured to asbestos; lenging such transfer or the validity of this creditors. Any State law that provides for (iii) if known by the plaintiff after reason- subsection or of any provision of the Fair- priorities inconsistent with this provision is able inquiry by the plaintiff or his represent- ness in Asbestos Injury Resolution Act of preempted by this Act. ative, the history of the exposed person’s ex- 2006, and an interlocutory order denying such (2) PAYMENT OF ASSESSMENT.—Payment of posure, if any, to asbestos; and relief shall not be subject to immediate ap- any assessment required by this Act shall (iv) copies of all medical and laboratory re- peal under section 1291(a) of title 28. not be subject to any automatic or judicially ports pertaining to the exposed person that ‘‘(B) AVAILABILITY OF FUND ASSETS.—Not- entered stay in any insurance receivership refer to asbestos or asbestos exposure. withstanding any other provision of law, proceeding. This Act shall preempt any (3) STATUTE OF LIMITATIONS.—In general, once such a transfer has been made, the as- State law requiring that payments by a di- the statute of limitations for a silica claim sets of the Fund shall be available to satisfy rect insurer, reinsurer or runoff participant shall be governed by applicable State law, any final judgment entered in such an action in an insurance receivership proceeding be except that in any case under this sub- and such transfer shall no longer be subject approved by a court, receiver or other per- section, the statute of limitations shall only to any appeal or review— son. Payments of assessments by any direct start to run when the plaintiff becomes im- ‘‘(i) declaring that the transfer effected a insurer or reinsurer participant under this paired. taking of a right or property for which an in- Act shall not be subject to the avoidance (c) SUPERSEDING PROVISIONS.—

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(1) IN GENERAL.—Except as provided under (i) relating to any default, confessed or of title 28, United States Code, except as may paragraph (3) and section 106(f), any agree- stipulated judgment on an asbestos claim if be necessary to accommodate removal of any ment, understanding, or undertaking by any the judgment debtor expressly agreed, in actions pending (including on appeal) on the person or affiliated group with respect to the writing or otherwise, not to contest the date of enactment of this Act. treatment of any asbestos claim, including a entry of judgment against it and the plain- (D) REVIEW OF REMAND ORDERS.— claim described under subsection (e)(2), that tiff expressly agreed, in writing or otherwise, (i) IN GENERAL.—Section 1447 of title 28, requires future performance by any party, to seek satisfaction of the judgment only United States Code, shall apply to any re- insurer of such party, settlement adminis- against insurers or in bankruptcy; moval of a case under this section, except trator, or escrow agent shall be superseded (ii) relating to the defense, investigation, that notwithstanding subsection (d) of that in its entirety by this Act. handling, litigation, settlement, or payment section, a court of appeals may accept an ap- (2) NO FORCE OR EFFECT.—Except as pro- of any asbestos claim by any participant, in- peal from an order of a district court grant- vided under paragraph (3), any such agree- cluding claims for bad faith or unfair or de- ing or denying a motion to remand an action ment, understanding, or undertaking by any ceptive claims handling or breach of any du- to the State court from which it was re- such person or affiliated group shall be of no ties of good faith; or moved if application is made to the court of force or effect, and no person shall have any (iii) arising out of or relating to the asbes- appeals not less than 30 days after entry of rights or claims with respect to any such tos-related injury of any individual and— the order. agreement, understanding, or undertaking. (I) asserting any conspiracy, concert of ac- (ii) TIME PERIOD FOR JUDGMENT.—If the (3) EXCEPTION.— tion, aiding or abetting, act, conduct, state- court of appeals accepts an appeal under (A) IN GENERAL.—Except as provided in sec- ment, misstatement, undertaking, publica- clause (i), the court shall complete all action tion 202(f), nothing in this Act shall abrogate tion, omission, or failure to detect, speak, on such appeal, including rendering judg- a binding and legally enforceable written disclose, publish, or warn relating to the ment, not later than 180 days after the date settlement agreement between any defend- presence or health effects of asbestos or the on which such appeal was filed, unless an ex- ant participant or its insurer and a specific use, sale, distribution, manufacture, produc- tension is granted under clause (iii). named plaintiff with respect to the settle- tion, development, inspection, advertising, (iii) EXTENSION OF TIME PERIOD.—The court ment of an asbestos claim of the plaintiff if— marketing, or installation of asbestos; or of appeals may grant an extension of the 180- (i) before the date of enactment of this (II) asserting any conspiracy, act, conduct, day period described in clause (ii) if— Act, the settlement agreement was executed statement, omission, or failure to detect, (I) all parties to the proceeding agree to by— disclose, or warn relating to the presence or such extension, for any period of time; or (I) the authorized legal representative act- health effects of asbestos or the use, sale, (II) such extension is for good cause shown ing on behalf of the settling defendant or in- distribution, manufacture, production, de- and in the interests of justice, for a period surer, the settling defendant or the settling velopment, inspection, advertising, mar- not to exceed 30 days. insurer; and keting, or installation of asbestos, asserted (iv) DENIAL OF APPEAL.—If a final judgment (II)(aa) the specific individual plaintiff, or as or in a direct action against an insurer or on the appeal under clause (i) is not issued the individual’s immediate relatives; or reinsurer based upon any theory, statutory, before the end of the period described in (bb) an authorized legal representative act- contract, tort, or otherwise; or clause (ii), including any extension under ing on behalf of the plaintiff where the plain- (iv) by any third party, and premised on clause (iii), the appeal shall be denied. tiff is incapacitated and the settlement any theory, allegation, or cause of action, (E) JURISDICTION.—The jurisdiction of the agreement is signed by that authorized legal for reimbursement of healthcare costs alleg- district court shall be limited to— representative; edly associated with the use of or exposure (i) determining whether removal was prop- (ii) the settlement agreement contains an to asbestos, whether such claim is asserted er; and express obligation by the settling defendant directly, indirectly or derivatively. (ii) determining, based on the evidentiary or settling insurer to make a future direct (B) EXCEPTIONS.—Subparagraph (A) (ii) and record, whether the claim presented is pre- monetary payment or payments in a fixed (iii) shall not apply to claims against par- empted, barred, or otherwise precluded under amount or amounts to the individual plain- ticipants by persons— this Act. tiff; and (i) with whom the participant is in privity (6) CREDITS.— (iii) within 30 days after the date of enact- of contract; (A) IN GENERAL.—If, notwithstanding the ment of this Act, or such shorter time period (ii) who have received an assignment of in- express intent of Congress stated in this sec- specified in the settlement agreement, the surance rights not otherwise voided by this tion, any court finally determines for any plaintiff has fulfilled all conditions to pay- Act; or reason that an asbestos claim is not barred ment under the settlement agreement. (iii) who are beneficiaries covered by the under this subsection and is not subject to (B) BANKRUPTCY-RELATED AGREEMENTS.— express terms of a contract with that partic- the exclusive remedy or preemption provi- The exception set forth in this paragraph ipant. sions of this section, then any participant re- shall not apply to any bankruptcy-related (3) PREEMPTION.—Any action asserting an quired to satisfy a final judgment executed agreement. asbestos claim (including a claim described with respect to any such claim may elect to (C) COLLATERAL SOURCE.—Any settlement in paragraph (2)) in any Federal or State receive a credit against any assessment owed payment under this section is a collateral court is preempted by this Act. to the Fund equal to the amount of the pay- source if the plaintiff seeks recovery from (4) DISMISSAL.—No judgment other than a ment made with respect to such executed the Fund. judgment of dismissal may be entered in any judgment. (D) ABROGATION.—Nothing in subparagraph such action, including an action pending on (B) REQUIREMENTS.—The Administrator (A) shall abrogate a settlement agreement appeal, or on petition or motion for discre- shall require participants seeking credit otherwise satisfying the requirements of tionary review, on or after the date of enact- under this paragraph to demonstrate that that subparagraph if such settlement agree- ment of this Act. A court may dismiss any the participant— ment expressly anticipates the enactment of such action on its motion. If the court denies (i) timely pursued all available remedies, this Act and provides for the effects of this the motion to dismiss, it shall stay further including remedies available under this para- Act. proceedings until final disposition of any ap- graph to obtain dismissal of the claim; and (E) HEALTH CARE INSURANCE OR EXPENSES peal taken under this Act. (ii) notified the Administrator at least 20 SETTLEMENTS.—Nothing in this Act shall ab- (5) REMOVAL.— days before the expiration of any period rogate or terminate an otherwise fully en- (A) IN GENERAL.—If an action in any State within which to appeal the denial of a mo- forceable settlement agreement which was court under paragraph (3) is preempted, tion to dismiss based on this section. executed before the date of enactment of this barred, or otherwise precluded under this (C) INFORMATION.—The Administrator may Act directly by the settling defendant or the Act, and not dismissed, or if an order entered require a participant seeking credit under settling insurer and a specific named plain- after the date of enactment of this Act pur- this paragraph to furnish such further infor- tiff to pay the health care insurance or porting to enter judgment or deny review is mation as is necessary and appropriate to es- health care expenses of the plaintiff. not rescinded and replaced with an order of tablish eligibility for, and the amount of, the (d) EXCLUSIVE REMEDY.— dismissal within 30 days after the filing of a credit. (1) IN GENERAL.—Except as provided under motion by any party to the action advising (D) INTERVENTION.—The Administrator paragraph (2) and section 106(f) of this Act the court of the provisions of this Act, any may intervene in any action in which a cred- and section 524(j)(3) of title 11, United States party may remove the case to the district it may be due under this paragraph. Code, as amended by this Act, the remedies court of the United States for the district in SEC. 404. EFFECT ON INSURANCE AND REINSUR- provided under this Act shall be the exclu- which such action is pending. ANCE CONTRACTS. sive remedy for any asbestos claim, includ- (B) TIME LIMITS.—For actions originally (a) EROSION OF INSURANCE COVERAGE LIM- ing any claim described in subsection (e)(2), filed after the date of enactment of this Act, ITS.— under any Federal or State law. the notice of removal shall be filed within (1) DEFINITIONS.—In this section, the fol- (2) CERTAIN SPECIFIED CLAIMS.— the time limits specified in section 1441(b) of lowing definitions shall apply: (A) IN GENERAL.—Subject to section 404 (d) title 28, United States Code. (A) DEEMED EROSION AMOUNT.—The term and (e)(3) of this Act, no claim may be (C) PROCEDURES.—The procedures for re- ‘‘deemed erosion amount’’ means the amount brought or pursued in any Federal or State moval and proceedings after removal shall be of erosion deemed to occur at enactment court or insurance receivership proceeding— in accordance with sections 1446 through 1450 under paragraph (2).

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(C) EARNED EROSION AMOUNT.—The term (C) POLICIES WITHOUT CERTAIN LIMITS OR miums, and limits issued by nonpartici- ‘‘earned erosion amount’’ means the percent- WITH EXCLUSION.—Except as provided under pating insolvent or captive insurance compa- age, as set forth in the following schedule, subparagraph (E), nothing in this section nies. Reduction of remaining aggregate lim- depending on the year in which the defend- shall require or permit the erosion of any in- its under this subsection shall not limit the ant participants’ funding obligations end, of surance policy or limit that does not contain right of a defendant participant to collect those amounts which, at the time of the an aggregate products limit, or that contains from any insurer not a participant. early sunset, a defendant participant has an asbestos exclusion. (6) EFFECT ON OTHER INSURANCE CLAIMS.— paid to the fund and remains obligated to (D) TREATMENT OF CONSOLIDATION ELEC- Other than as specified in this subsection, pay into the fund. TION.—If an affiliated group elects consolida- this Act does not alter, change, modify, or Year After Enactment Applicable tion as provided in section 204(g), the total affect insurance for claims other than asbes- In Which Defendant Percentage: erosion of limits for the affiliated group tos claims. Participant’s Fund- under paragraph (2)(A) shall not exceed 38.1 (b) DISPUTE RESOLUTION PROCEDURE.— ing Obligation percent of the scheduled payment amount of (1) ARBITRATION.—The parties to a dispute Ends: the single payment obligation for the entire regarding the erosion of insurance coverage 2 ...... 67.06 affiliated group. The total erosion of limits limits under this section may agree in writ- 3 ...... 86.72 for any individual defendant participant in ing to settle such dispute by arbitration. 4 ...... 96.55 the affiliated group shall not exceed its indi- Any such provision or agreement shall be 5 ...... 102.45 vidual share of 38.1 percent of the affiliated valid, irrevocable, and enforceable, except 6 ...... 90.12 group’s scheduled payment amount, as meas- for any grounds that exist at law or in equity 7 ...... 81.32 ured by the individual defendant partici- for revocation of a contract. 8 ...... 74.71 pant’s percentage share of the affiliated (2) TITLE 9, UNITED STATES CODE.—Arbitra- 9 ...... 69.58 group’s prior asbestos expenditures. tion of such disputes, awards by arbitrators, 10 ...... 65.47 (E) RULE OF CONSTRUCTION.—Notwith- and confirmation of awards shall be governed 11 ...... 62.11 standing any other provision of this section, by title 9, United States Code, to the extent 12 ...... 59.31 nothing in this Act shall be deemed to erode such title is not inconsistent with this sec- 13 ...... 56.94 remaining aggregate products limits of a de- tion. In any such arbitration proceeding, the 14 ...... 54.90 fendant participant that can demonstrate by erosion principles provided for under this 15 ...... 53.14 a preponderance of the evidence that 75 per- section shall be binding on the arbitrator, 16 ...... 51.60 cent of its prior asbestos expenditures were unless the parties agree to the contrary. 17 ...... 50.24 made in defense or satisfaction of asbestos (3) FINAL AND BINDING AWARD.—An award 18 ...... 49.03 claims alleging bodily injury arising exclu- by an arbitrator shall be final and binding 19 ...... 47.95 sively from the exposure to asbestos at between the parties to the arbitration, but 20 ...... 46.98 premises owned, rented, or controlled by the shall have no force or effect on any other 21 ...... 46.10 defendant participant (a ‘‘premises defend- person. The parties to an arbitration may 22 ...... 45.30 ant’’). In calculating such percentage, where agree that in the event a policy which is the 23 ...... 44.57 expenditures were made in defense or satis- subject matter of an award is subsequently 24 ...... 43.90 faction of asbestos claims alleging bodily in- determined to be eroded in a manner dif- 25 ...... 43.28 jury due to exposure to the defendant par- ferent from the manner determined by the 26 ...... 42.71 ticipant’s products and to asbestos at prem- arbitration in a judgment rendered by a 27 ...... 42.18 ises owned, rented, or controlled by the de- court of competent jurisdiction from which 28 ...... 40.82 fendant participant, half of such expendi- no appeal can or has been taken, such arbi- 29 ...... 39.42 tures shall be deemed to be for such premises tration award may be modified by any court (D) REMAINING AGGREGATE PRODUCTS LIM- exposures. If a defendant participant estab- of competent jurisdiction upon application ITS.—The term ‘‘remaining aggregate prod- lishes itself as a premises defendant, 75 per- by any party to the arbitration. Any such ucts limits’’ means aggregate limits that cent of the payments by such defendant par- modification shall govern the rights and ob- apply to insurance coverage granted under ticipant shall erode coverage limits, if any, ligations between such parties after the date the ‘‘products hazard’’, ‘‘completed oper- applicable to premises liabilities under ap- of such modification. ations hazard’’, or ‘‘Products—Completed plicable law. (c) EFFECT ON NONPARTICIPANTS.— Operations Liability’’ in any comprehensive (3) METHOD OF EROSION.— (1) IN GENERAL.—No insurance company or general liability policy issued between cal- (A) ALLOCATION.—The amount of erosion reinsurance company that is not a partici- endar years 1940 and 1986 to cover injury allocated to each defendant participant shall pant, other than a captive insurer, shall be which occurs in any State, as reduced by— be allocated among periods in which policies entitled to claim that payments to the Fund (i) any existing impairment of such aggre- with remaining aggregate product limits are erode, exhaust, or otherwise limit the non- gate limits as of the date of enactment of available to that defendant participant pro participant’s insurance or reinsurance obli- this Act; and rata by policy period, in ascending order by gations. (ii) the resolution of claims for reimburse- attachment point. (2) OTHER CLAIMS.—Nothing in this Act ment or coverage of liability or paid or in- (B) OTHER EROSION METHODS.— shall preclude a participant from pursuing curred loss for which notice was provided to (i) IN GENERAL.—Notwithstanding subpara- any claim for insurance or reinsurance from the insurer before the date of enactment of graph (A), the method of erosion of any re- any person that is not a participant other this Act. maining aggregate products limits which are than a captive insurer. (E) SCHEDULED PAYMENT AMOUNTS.—The subject to— (d) FINITE RISK POLICIES NOT AFFECTED.— term ‘‘scheduled payment amounts’’ means (I) a coverage-in-place or settlement agree- (1) IN GENERAL.—Notwithstanding any the future payment obligation to the Fund ment between a defendant participant and 1 other provision of this Act, except subject to under this Act from a defendant participant or more insurance participants as of the date section 212(a)(1)(D), this Act shall not alter, in the amount established under sections 203 of enactment; or affect or impair any rights or obligations and 204. (II) a final and nonappealable judgment as of— (F) UNEARNED EROSION AMOUNT.—The term of the date of enactment or resulting from a (A) any party to an insurance contract ‘‘unearned erosion amount’’ means the dif- claim for coverage or reimbursement pend- that expressly provides coverage for govern- ference between the deemed erosion amount ing as of such date, shall be as specified in mental charges or assessments imposed to and the earned erosion amount. such agreement or judgment with regard to replace insurance or reinsurance liabilities (2) QUANTUM AND TIMING OF EROSION.— erosion applicable to such insurance partici- in effect on the date of enactment of this (A) EROSION UPON ENACTMENT.—The collec- pants’ policies. Act; or tive payment obligations to the Fund of the (ii) REMAINING LIMITS.—To the extent that (B) subject to paragraph (2), any person insurer and reinsurer participants as as- a final nonappealable judgment or settle- with respect to any insurance purchased by a sessed by the Administrator shall be deemed ment agreement to which an insurer partici- participant after December 31, 1990, that ex- as of the date of enactment of this Act to pant and a defendant participant are parties pressly (but not necessarily exclusively) pro- erode remaining aggregate products limits in effect as of the date of enactment of this vides coverage for asbestos liabilities, in- available to a defendant participant only in Act extinguished a defendant participant’s cluding those policies commonly referred to an amount of 38.1 percent of each defendant right to seek coverage for asbestos claims as ‘‘finite risk’’ policies. participant’s scheduled payment amount. under an insurer participant’s policies, any (2) LIMITATION.—No person may assert that (B) NO ASSERTION OF CLAIM.—No insurer or remaining limits in such policies shall not be any amounts paid to the Fund in accordance reinsurer may assert any claim against a de- considered to be remaining aggregate prod- with this Act are covered by any policy de- fendant participant or captive insurer for in- ucts limits under subsection (a)(1)(A). scribed under paragraph (1)(B) purchased by surance, reinsurance, payment of a deduct- (5) PAYMENTS BY DEFENDANT PARTICIPANT.— a defendant participant, unless such policy ible, or retrospective premium adjustment Payments made by a defendant participant specifically provides coverage for required arising out of that insurer’s or reinsurer’s shall be deemed to erode, exhaust, or other- payments to a Federal trust fund established payments to the Fund or the erosion deemed wise satisfy applicable self-insured reten- by a Federal statute to resolve asbestos in- to occur under this section. tions, deductibles, retrospectively rated pre- jury claims.

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(e) EFFECT ON CERTAIN INSURANCE AND RE- ceived the compensation to which such (1) IN GENERAL.—If the Administrator con- INSURANCE CLAIMS.— claimants are entitled according to section cludes, on the basis of the annual report sub- (1) NO COVERAGE FOR FUND ASSESSMENTS.— 131; mitted under this section, that— Subject to section 212(a)(1)(D), no partici- (2) the administrative performance of the (A) the average number of claims that pant or captive insurer may pursue an insur- program, including— qualify for compensation under a claim level ance or reinsurance claim against another (A) the performance of the program in or designation exceeds 125 percent of the participant or captive insurer for payments meeting the time limits prescribed by law number of claims expected to qualify for to the Fund required under this Act, except and an analysis of the reasons for any sys- compensation under that claim level or des- under a written agreement specifically pro- temic delays; ignation in the most recent Congressional viding insurance, reinsurance, or other reim- (B) any backlogs of claims that may exist Budget Office estimate of asbestos-injury bursement for required payments to a Fed- and an explanation of the reasons for such claims for any 3-year period, the Adminis- eral trust fund established by a Federal stat- backlogs; trator shall conduct a review of a statis- ute to resolve asbestos injury claims or, (C) the costs to the Fund of administering tically significant sample of claims quali- where applicable, under finite risk policies the program; and fying for compensation under the appro- under subsection (d). (D) any other significant factors bearing priate claim level or designation; or (2) CERTAIN INSURANCE ASSIGNMENTS VOID- on the efficiency of the program; (B) the average number of claims that ED.—Any assignment of any rights to insur- (3) the financial condition of the Fund, in- qualify for compensation under a claim level ance coverage for asbestos claims to any per- cluding— or designation is less than 75 percent of the son who has asserted an asbestos claim be- (A) statements of the Fund’s revenues, ex- number of claims expected to qualify for fore the date of enactment of this Act, or to penses, assets, and liabilities; compensation under that claim level or des- any trust, person, or other entity not part of (B) the identity of all participants, the ignation in the most recent Congressional an affiliated group as defined in section funding allocations of each participant, and Budget Office estimate of asbestos-injury 201(1) of this Act established or appointed for the total amounts of all payments to the claims for any 3-year period, the Adminis- the purpose of paying asbestos claims which Fund; trator shall conduct a review of a statis- were asserted before such date of enactment, (C) a list of all financial hardship or in- tically significant sample of claims deemed or by any Tier I defendant participant shall equity adjustments applied for during the ineligible for compensation under the appro- be null and void. This subsection shall not fiscal year, and the adjustments that were priate claim level or designation. void or affect in any way any assignments of made during the fiscal year; (2) DETERMINATIONS.—The Administrator rights to insurance coverage other than to (D) a statement of the investments of the shall examine the best available medical evi- asbestos claimants or to trusts, persons, or Fund; and dence and any recommendation made under other entities not part of an affiliated group (E) a statement of the borrowings of the subsection (b)(5) in order to determine which as defined in section 201(1) of this Act estab- Fund; 1 or more of the following is true: lished or appointed for the purpose of paying (4) the financial prospects of the Fund, in- (A) Without a significant number of excep- asbestos claims, or by Tier I defendant par- cluding— tions, all of the claimants who qualified for ticipants. (A) an estimate of the number and types of compensation under the claim level or des- (3) INSURANCE CLAIMS PRESERVED.—Not- claims, the amount of awards, and the par- ignation suffer from an injury or disease for withstanding any other provision of this Act, ticipant payment obligations for the next which exposure to asbestos was a substantial this Act shall not alter, affect, or impair any fiscal year; contributing factor. rights or obligations of any person with re- (B) an analysis of the financial condition of (B) A significant number of claimants who spect to any insurance or reinsurance for the Fund, including an estimation of the qualified for compensation under the claim amounts that any person pays, has paid, or Fund’s ability to pay claims for the subse- level or designation do not suffer from an in- becomes legally obligated to pay in respect quent 5 years in full and over the predicted jury or disease for which exposure to asbes- of asbestos or other claims except to the ex- lifetime of the program as and when re- tos was a substantial contributing factor. tent that— quired, an evaluation of the Fund’s ability to (C) A significant number of claimants who (A) such claims are preempted, barred, or retire its existing debt and assume addi- were denied compensation under the claim superseded by section 403; tional debt, and an evaluation of the Fund’s level of designation did suffer from an injury (B) any such rights or obligations of such ability to satisfy other obligations under the or disease for which exposure to asbestos was person with respect to insurance or reinsur- program; and a substantial contributing factor. ance are prohibited by paragraph (1) or (2) of (C) a report on any changes in projections (D) The Congressional Budget Office pro- subsection (e); or made in earlier annual reports or sunset jections underestimated or overestimated (C) the limits of insurance otherwise avail- analyses regarding the Fund’s ability to the actual number of persons who suffer able to such participant in respect of asbes- meet its financial obligations; from an injury or disease for which exposure tos claims are deemed to be eroded under (5) a summary of any legal actions brought to asbestos was a substantial contributing subsection (a). or penalties imposed under section 223, any factor. SEC. 405. ANNUAL REPORT OF THE ADMINIS- referrals made to law enforcement authori- (3) RECOMMENDATIONS CONCERNING CLAIMS TRATOR. ties under section 408 (a) and (b), and any CRITERIA.—If the Administrator determines (a) IN GENERAL.—The Administrator shall contributions to the Fund collected under that a significant number of the claimants submit an annual report to the Committee section 408(e); who qualified for compensation under the on the Judiciary of the Senate and the Com- (6) any recommendations from the Advi- claim level under review do not suffer from mittee on the Judiciary of the House of Rep- sory Committee on Asbestos Disease Com- an injury or disease for which exposure to as- resentatives on the operation of the Asbestos pensation and the Medical Advisory Com- bestos was a substantial contributing factor, Injury Claims Resolution Fund within 6 mittee of the Fund to improve the diag- or that a significant number of the claim- months after the close of each fiscal year. nostic, exposure, and medical criteria so as ants who were denied compensation under (b) CONTENTS OF REPORT.—The annual re- to pay those claimants who suffer from dis- the claim level under review suffered from port submitted under this subsection shall eases or conditions for which exposure to as- an injury or disease for which exposure to as- include an analysis of— bestos was a substantial contributing factor; bestos was a substantial contributing factor, (1) the claims experience of the program (7) a summary of the results of audits con- the Administrator shall recommend to Con- during the most recent fiscal year, includ- ducted under section 115; and gress, under subsection (f), changes to the ing— (8) a summary of prosecutions under sec- compensation criteria in order to ensure (A) the number of claims made to the Of- tion 1348 of title 18, United States Code (as that the Fund provides compensation for in- fice and a description of the types of medical added by this Act). jury or disease for which exposure to asbes- diagnoses and asbestos exposures underlying (c) CERTIFICATION.—The Administrator tos was a substantial contributing factor, those claims; shall certify in the annual report required but does not provide compensation to claim- (B) the number of claims denied by the Of- under subsection (a) whether, in the best ants who do not suffer from an injury or dis- fice and a description of the types of medical judgment of the Administrator, the Fund ease for which asbestos exposure was a sub- diagnoses and asbestos exposures underlying will have sufficient resources for the fiscal stantial contributing factor. those claims, and a general description of year in which the report is issued to make (e) RECOMMENDATIONS OF ADMINISTRATOR the reasons for their denial; all required payments— AND ADVISORY COMMITTEE.— (C) a summary of the eligibility determina- (1) with respect to all claims determined (1) REFERRAL.—If the Administrator rec- tions made by the Office under section 114; eligible for compensation that have been ommends changes to this Act under sub- (D) a summary of the awards made from filed and that the Administrator projects section (d), the recommendations and accom- the Fund, including the amount of the will be filed with the Office for the fiscal panying analysis shall be referred to the Ad- awards; and year; and visory Committee on Asbestos Disease Com- (E) for each disease level, a statement of (2) to satisfy the Fund’s debt repayment pensation established under section 102 (in the percentage of asbestos claimants who obligation, administrative costs, and other this subsection referred to as the ‘‘Advisory filed claims during the prior calendar year financial obligations. Committee’’). and were determined to be eligible to receive (d) CLAIMS ANALYSIS AND VERIFICATION OF (2) ADVISORY COMMITTEE RECOMMENDA- compensation under this Act, who have re- UNANTICIPATED CLAIMS.— TIONS.—The Advisory Committee shall hold

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RULES OF CONSTRUCTION RELATING authority to enforce occupational safety and (3) TRANSMITTAL TO CONGRESS.—Not later TO LIABILITY OF THE UNITED health standards, for investigation for pos- than 90 days after receiving the rec- STATES GOVERNMENT. sible civil or criminal penalties under sec- ommendations of the Administrator, the Ad- (a) CAUSES OF ACTIONS.—Except as other- tion 17 of the Occupational Safety and visory Committee shall transmit the rec- wise specifically provided in this Act, noth- Health Act of 1970 (29 U.S.C. 666). ommendations of the Administrator and the ing in this Act shall be construed as creating SEC. 409. NONDISCRIMINATION OF HEALTH IN- recommendations of the Advisory Com- a cause of action against the United States SURANCE. mittee to the Committee on the Judiciary of Government, any entity established under (a) DENIAL, TERMINATION, OR ALTERATION the Senate and the Committee on the Judici- this Act, or any officer or employee of the OF HEALTH COVERAGE.—No health insurer of- ary of the House of Representatives. United States Government or such entity. fering a health plan may deny or terminate (f) SHORTFALL ANALYSIS.— (b) FUNDING LIABILITY.—Nothing in this coverage, or in any way alter the terms of (1) IN GENERAL.— Act shall be construed to— coverage, of any claimant or the beneficiary (A) ANALYSIS.—If the Administrator con- (1) create any obligation of funding from of a claimant, on account of the participa- cludes, at any time, that the Fund may not the United States Government, including tion of the claimant or beneficiary in a med- be able to pay claims as such claims become any borrowing authorized under section ical monitoring program under this Act, or as a result of any information discovered as due at any time within the next 5 years and 221(b)(2); or a result of such medical monitoring. to satisfy its other obligations, the Adminis- (2) obligate the United States Government (b) DEFINITIONS.—In this section: trator shall prepare an analysis of the rea- to pay any award or part of an award, if (1) HEALTH INSURER.—The term ‘‘health in- sons for the situation, an estimation of when amounts in the Fund are inadequate. the Fund will no longer be able to pay claims surer’’ means— as such claims become due, a description of SEC. 407. RULES OF CONSTRUCTION. (A) an insurance company, healthcare serv- the range of reasonable alternatives for re- (a) LIBBY, MONTANA CLAIMANTS.—Nothing ice contractor, fraternal benefit organiza- sponding to the situation, and a rec- in this Act shall preclude the formation of a tion, insurance agent, third-party adminis- ommendation as to which alternative best fund for the payment of eligible medical ex- trator, insurance support organization, or serves the interest of claimants and the pub- penses related to treating asbestos-related other person subject to regulation under the lic. The report may include a description of disease for current and former residents of laws related to health insurance of any changes in the diagnostic, exposure, or med- Libby, Montana. The payment of any such State; ical criteria of section 121 that the Adminis- medical expenses shall not be collateral (B) a managed care organization; or trator believes may be necessary to protect source compensation as defined under sec- (C) an employee welfare benefit plan regu- the Fund. The Administrator shall submit tion 134(a). lated under the Employee Retirement In- such analysis to the Committee on the Judi- (b) HEALTHCARE FROM PROVIDER OF come Security Act of 1974 (29 U.S.C. 1001 et ciary of the Senate and the Committee on CHOICE.—Nothing in this Act shall be con- seq.). the Judiciary of the House of Representa- strued to preclude any eligible claimant (2) HEALTH PLAN.—The term ‘‘health plan’’ tives. Any recommendations made by the from receiving healthcare from the provider means— Administrator for changes to the program of their choice. (A) a group health plan (as such term is de- shall, in addition, be referred to the Advisory SEC. 408. VIOLATIONS OF ENVIRONMENTAL fined in section 607 of the Employee Retire- Committee on Asbestos Disease Compensa- HEALTH AND SAFETY REQUIRE- ment Income Security Act of 1974 (29 U.S.C. tion established under section 102 for review. MENTS. 1167)), and a multiple employer welfare ar- (B) RANGE OF ALTERNATIVES.—The range of (a) ASBESTOS IN COMMERCE.—If the Admin- rangement (as defined in section 3(4) of such alternatives under subparagraph (A) may in- istrator receives information concerning Act) that provides health insurance cov- clude— conduct occurring after the date of enact- erage; or (ii) reform of the program set forth in ti- ment of this Act that may have been a viola- (B) any contractual arrangement for the tles I and II of this Act (including changes in tion of standards issued by the Environ- provision of a payment for healthcare, in- the diagnostic, exposure, or medical criteria, mental Protection Agency under the Toxic cluding any health insurance arrangement or changes in the enforcement or application of Substances Control Act (15 U.S.C. 2601 et any arrangement consisting of a hospital or those criteria, enhancement of enforcement seq.), relating to the manufacture, importa- medical expense incurred policy or certifi- authority, changes in the timing of pay- tion, processing, disposal, and distribution in cate, hospital or medical service plan con- ments, changes in contributions by defend- commerce of asbestos-containing products, tract, or health maintenance organizing sub- ant participants, insurer participants (or the Administrator shall refer the matter in scriber contract. both such participants), or changes in award writing within 30 days after receiving that (c) CONFORMING AMENDMENTS.— values); or information to the Administrator of the En- (1) ERISA.—Section 702(a)(1) of the Em- (iii) any measure that the Administrator vironmental Protection Agency and the ployee Retirement Income Security Act of considers appropriate. United States attorney for possible civil or 1974 (29 U.S.C. 1182(a)(1)), is amended by add- (2) CONSIDERATIONS.—In formulating rec- criminal penalties, including those under ing at the end the following: ommendations, the Administrator shall take section 17 of the Toxic Substances Control ‘‘(I) Participation in a medical monitoring into account the reasons for any shortfall, Act (15 U.S.C. 2616), and to the appropriate program under the Fairness in Asbestos In- actual or projected, which may include— State authority with jurisdiction to inves- jury Resolution Act of 2006.’’. (A) financial factors, including return on tigate asbestos matters. (2) PUBLIC SERVICE HEALTH ACT.—Section investments, borrowing capacity, interest (b) ASBESTOS AS AIR POLLUTANT.—If the 2702(a)(1) of the Public Health Service Act (42 rates, ability to collect contributions, and Administrator receives information con- U.S.C. 300gg–1(a)(1)) is amended by adding at other relevant factors; cerning conduct occurring after the date of the end the following: (B) the operation of the Fund generally, in- enactment of this Act that may have been a ‘‘(I) Participation in a medical monitoring cluding administration of the claims proc- violation of standards issued by the Environ- program under the Fairness in Asbestos In- essing, the ability of the Administrator to mental Protection Agency under the Clean jury Resolution Act of 2006.’’. collect contributions from participants, po- Air Act (42 U.S.C. 7401 et seq.), relating to as- (3) INTERNAL REVENUE CODE OF 1986.—Sec- tential problems of fraud, the adequacy of bestos as a hazardous air pollutant, the Ad- tion 9802(a)(1) of the Internal Revenue Code the criteria to rule out idiopathic mesothe- ministrator shall refer the matter in writing of 1986 is amended by adding at the end the lioma, and inadequate flexibility to extend within 30 days after receiving that informa- following: the timing of payments; tion to the Administrator of the Environ- ‘‘(I) Participation in a medical monitoring (C) the appropriateness of the diagnostic, mental Protection Agency and the United program under the Fairness in Asbestos In- exposure, and medical criteria, including the States attorney for possible criminal and jury Resolution Act of 2006.’’. adequacy of the criteria to rule out idio- civil penalties, including those under section pathic mesothelioma; 113 of the Clean Air Act (42 U.S.C. 7413), and SA 2847. Mr. ISAKSON submitted an (D) the actual incidence of asbestos-related to the appropriate State authority with ju- amendment intended to be proposed to diseases, including mesothelioma, based on risdiction to investigate asbestos matters. amendment SA 2746 proposed by Mr. epidemiological studies and other relevant (c) OCCUPATIONAL EXPOSURE.—If the Ad- FRIST (for Mr. SPECTER (for himself and data; ministrator receives information concerning Mr. LEAHY)) to the bill S. 852, to create (E) compensation of diseases with alter- conduct occurring after the date of enact- a fair and efficient system to resolve native causes; and ment of this Act that may have been a viola- claims of victims for bodily injury (F) other factors that the Administrator tion of standards issued by the Occupational considers relevant. Safety and Health Administration under the caused by asbestos exposure, and for (4) RESOLVED CLAIMS.—For purposes of this Occupational Safety and Health Act of 1970 other purposes; which was ordered to section, a claim shall be deemed resolved (29 U.S.C. 651 et seq.), relating to occupa- lie on the table; as follows: when the Administrator has determined the tional exposure to asbestos, the Adminis- Strike section 223(j) and insert the fol- amount of the award due the claimant, and trator shall refer the matter in writing with- lowing:

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Section 223 any of the previous completed 5 fiscal years (6) RULES AND REGULATIONS.—The Adminis- (j) TRANSACTIONS.— of such participant (or, as appropriate, its af- trator may promulgate regulations to effec- (1) NOTICE OF TRANSACTION.—Any partici- filiated group), and as determined in accord- tuate the intent of this subsection, including pant that has engaged in any transaction or ance with United States’ generally accepted regulations relating to the form, timing and series of transactions under which a signifi- accounting principles as in effect from time content of notices. cant portion of such participant’s assets, to time— properties or business was, directly or indi- (A) generated at least 40 percent of the rev- SA 2848. Mr. THUNE (for himself, Mr. rectly, transferred by any means (including, enues of such participant (or its affiliated COLEMAN, and Mr. GRAHAM) submitted without limitation, by sale, dividend, con- group); an amendment intended to be proposed tribution to a subsidiary or split-off) to 1 or (B) constituted at least 40 percent of the to amendment SA 2746 proposed by Mr. more persons other than the participant assets of such participant (or its affiliated FRIST (for Mr. SPECTER (for himself and shall provide written notice to the Adminis- group); Mr. LEAHY)) to the bill S. 852, to create trator of such transaction (or series of trans- (C) generated at least 40 percent of the op- erating cash flows of such participant (or its a fair and efficient system to resolve actions). claims of victims for bodily injury (2) TIMING OF NOTICE AND RELATED AC- affiliated group); or TIONS.— (D) generated at least 40 percent of the net caused by asbestos exposure, and for (A) IN GENERAL.—Any notice that a partici- income or loss of such participant (or its af- other purposes; which was ordered to pant is required to give under paragraph (1) filiated group), lie on the table; as follows: shall be given not later than 30 days after as measured during any of such 5 previous On page 144, between lines 6 and 7, insert the date of consummation of the transaction fiscal years. the following: or the first transaction to occur in a pro- (5) RIGHT OF ACTION.— (9) SAFETY EQUIPMENT MANUFACTURER DE- posed series of transactions. (A) IN GENERAL.—Notwithstanding section FENDANT PARTICIPANT.—The term ‘‘safety (B) OTHER NOTIFICATIONS.— 221(f), if the Administrator or any partici- equipment manufacturer defendant partici- (i) IN GENERAL.—Not later than the date in pant believes that a participant has engaged, pant’’ means any defendant participant any year by which a participant is required directly or indirectly, in, or is the subject of, that— to make its contribution to the Fund, the a transaction (or series of transactions)— (A) has continuously manufactured res- participant shall deliver to the Adminis- (i) involving a person or persons who, as a piratory protection equipment in the United trator a written certification stating that— result of such transaction (or series of trans- States on and after December 31, 1972; and (I) the participant has complied during the actions), may have or may become the suc- (B) based upon the portion of its prior as- period since the last such certification or the cessor in interest or successors in interest of bestos expenditures attributable to asbestos date of enactment of this Act with the notice such participant for purposes of this Act, claims relating to respiratory protection requirements set forth in this subsection; or where the status as a successor in interest products being treated as total prior asbes- (II) the participant was not required to has not been stated and acknowledged by the tos expenditures would result in that partici- provide any notice under this subsection dur- participant and such person; or pant being assigned to the same tier to ing such period. (ii) that may be subject to avoidance by a which that participant is assigned under sec- (ii) SUMMARY.—The Administrator shall in- trustee under section 544(b) or 548 of title 11, tion 202(d) based on its total prior asbestos clude in the annual report required to be United States Code, as if, but whether or not, expenditures. submitted to Congress under section 405 a the participant is a subject to a case under On page 151, between lines 16 and 17, insert summary of all such notices (after removing title 11, United States Code, the following: all confidential identifying information) re- then the Administrator or such participant (7) SAFETY EQUIPMENT MANUFACTURER DE- ceived during the most recent fiscal year. may, as a deemed creditor under applicable FENDANT PARTICIPANTS.— (C) NOTICE COMPLETION.—The Adminis- law, bring a civil action in an appropriate (A) IN GENERAL.—A safety equipment man- trator shall not consider any notice given forum against the participant or any other ufacturer defendant participant that would under paragraph (1) as given until such time person who is either a party to the trans- be included in Tier II, III, IV, or V according as the Administrator receives substantially action (or series of transactions) or the re- to that defendant participant’s prior asbes- all the information required by this sub- cipient of any asset, property or business of tos expenditures shall instead be assigned to section. the participant. the immediately lower tier, such that— (3) CONTENTS OF NOTICE.— (B) RELIEF ALLOWED.—In any action com- (i) a safety equipment manufacturer de- (A) IN GENERAL.—The Administrator shall menced under this subsection, the Adminis- fendant participant that would be assigned determine by rule or regulation the informa- trator or a participant, as applicable, may to Tier II shall instead be assigned to Tier tion to be included in the notice required seek— III; under this subsection, which shall include (i) with respect to a transaction (or series (ii) a safety equipment manufacturer de- such information as may be necessary to en- of transactions) referenced in clause (i) of fendant participant that would be assigned able the Administrator to determine wheth- subparagraph (A), a declaratory judgment re- to Tier III shall instead be assigned to Tier er— garding whether such person has become the IV; (i) the person or persons to whom the as- successor in interest of such participant for (iii) a safety equipment manufacturer de- sets, properties or business were transferred purposes of this Act; or fendant participant that would be assigned in the transaction (or series of transactions) (ii) with respect to a transaction (or series to Tier IV shall instead be assigned to Tier should be considered to be the successor in of transactions) referenced in clause (ii) of V; and interest of the participant for purposes of subparagraph (A)— (iv) a safety equipment manufacturer de- this Act, or (ii) the transaction (or series of (I) a temporary restraining order or a pre- fendant participant that would be assigned transactions) is subject to avoidance by a liminary or permanent injunction against to Tier V shall instead be assigned to Tier trustee under section 544(b) or 548 of title 11, such transaction (or series of transactions); VI. United States Code, as if, but whether or not, or (B) RETURN TO ORIGINAL TIER.— (II) such other relief regarding such trans- the participant is subject to a case under (i) CESSATION OF MANUFACTURING.—The Ad- title 11, United States Code. action (or series of transactions) as the court ministrator shall return a safety equipment (B) STATEMENTS.—The notice shall also in- determines to be necessary to ensure that manufacturer defendant participant to that clude— performance of a participant’s payment obli- participant’s original tier, on a yearly basis, (i) a statement by the participant as to gations under this Act is not materially im- if the Administrator determines that the whether it believes any person has become a paired by reason of such transaction (or se- safety equipment manufacturer defendant successor in interest to the participant for ries of transactions). has ceased manufacturing respiratory pro- PPLICABILITY.—If the Administrator purposes of this Act and, if so, the identity (C) A tection equipment in the United States. of that person; and or a participant wishes to challenge a state- (ii) SOLVENCY OF FUND.—The Administrator (ii) a statement by the participant as to ment made by a participant that a person may return all safety equipment manufac- whether that person has acknowledged that has not become a successor in interest for turer defendant participants to their original it has become a successor in interest for pur- purposes of this Act, then this paragraph tiers, on a yearly basis, if the Administrator poses of this Act. shall be the exclusive means by which the determines that the additional revenues that (4) DEFINITION.—In this subsection, the determination of whether such person be- would be collected are needed to preserve the term ‘significant portion of the assets, prop- came a successor in interest of the partici- solvency of the Fund. erties or business of a participant’ means as- pant shall be made. This paragraph shall not sets (including, without limitation, tangible preempt any other rights of any person SA 2849. Mr. SESSIONS submitted an or intangible assets, securities and cash), under applicable Federal or State law. amendment intended to be proposed to properties or business of such participant (or (D) VENUE.—Any action under this para- its affiliated group, to the extent that the graph shall be brought in any appropriate amendment SA 2746 proposed by Mr. participant has elected to be part of an affili- United States district court or, to the extent FRIST (for Mr. SPECTER (for himself and ated group under section 204(f)) that, to- necessary to obtain complete relief, any Mr. LEAHY)) to the bill S. 852, to create gether with any other asset, property or other appropriate forum outside of the a fair and efficient system to resolve business transferred by such participant in United States. claims of victims for bodily injury

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00173 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1308 CONGRESSIONAL RECORD — SENATE February 14, 2006 caused by asbestos exposure, and for (c) Subsequent to renumbering the sub- At page 334, line 8, replace ‘‘204(f)’’ with other purposes; which was ordered to sections following new subsection 204(c), ‘‘204(g)’’. lie on the table; as follows: make the following cross-reference changes: SEC. 2. HARDSHIP ADJUSTMENTS. At page 142, line 7, replace ‘‘204(g)’’ with On page 366, between lines 12 and 13, insert (a) Strike page 172, line 6, through page 173, ‘‘204(h)’’. line 17, and insert the following: the following: At page 151, line 20, replace ‘‘204(i)(6)’’ with (c) APPLICATION OF THE LONGSHORE AND (2) FINANCIAL HARDSHIP ADJUSTMENTS. ‘‘204(j)(6)’’. (A) IN GENERAL.—Any defendant partici- HARBOR WORKERS’ COMPENSATION ACT.—Em- At page 160, line 21, replace ‘‘204(1)’’ with ployers and their insurers who pay com- pant in any tier may apply for an adjust- ‘‘204(m)’’. ment under this paragraph at any time dur- pensation or medical benefits or who are po- At page 167, line 24, replace ‘‘204(d)’’ with tentially liable to their employees and other ing the period in which a payment obligation ‘‘204(e)’’. to the Fund remains outstanding and may beneficiaries for compensation or medical At page 170, lines 21 and 22, replace ‘‘(d) qualify for such an adjustment by dem- benefits under the Longshore and Harbor and (m)’’ with ‘‘(e) and (n)’’. onstrating to the satisfaction of the adminis- Workers’ Compensation Act (33 U.S.C. 901 et At page 171, line 22, replace ‘‘(i)(10)’’ with trator that the amount of its payment obli- seq.) shall be entitled to— ‘‘(j)(10)’’. gation would materially and adversely affect (1) a lien for compensation and medical At page 172, line 3, replace ‘‘(j)’’ with ‘‘(k)’’. benefits paid; and At page 177, line 12, replace ‘‘(j) with ‘‘(k)’’. the defendant participant’s ability to con- (2) release as the case may be, as per the At page 178, line 25, replace ‘‘(j)(3)’’ with tinue its business and to pay or satisfy its provisions of 33 U.S.C. Section 933; provided, ‘‘(k)(3)’’. debts generally as and when they come due. however, that such employers, insurers, em- At page 179, line 2, replace ‘‘(k)(1)(A)’’ with Such an adjustment shall be in an amount ployees and other persons entitled to the ‘‘(l)(1)(A)’’. that in the judgment of the administrator is compensation or medical benefits under that At page 182, line 16, replace ‘‘(i) with ‘‘(j)’’. reasonably necessary to prevent such mate- Act may not bring actions under Section 933 At page 183, line 6, replace ‘‘(i)’’ with ‘‘(j)’’. rial and adverse effect on the defendant par- against third parties who are protected At page 186, lines 7 and 8, replace ‘‘(d), (f), ticipant’s ability to continue its business under this Act. (g), and (m)’’ with ‘‘(e), (g), (h) and (n)’’. and to pay or satisfy its debts generally as At page 186, line 11, replace ‘‘(d) and (m)’’ and when they come due. SA 2850. Mr. KYL (for himself and with ‘‘(e) and ‘‘(n)’’. (B) FACTORS TO CONSIDER.—In determining whether to make an adjustment under sub- Mr. CHAMBLISS) submitted an amend- At page 186, line 20, replace ‘‘(d) and (m)’’ paragraph (A) and the amount thereof, the ment intended to be proposed to with ‘‘(e) and ‘‘(n)’’. At page 186, line 23, replace ‘‘(l)’’ with Administrator shall consider— amendment SA 2746 proposed by Mr. ‘‘(m)’’. (1) the financial situation of the defendant FRIST (for Mr. SPECTER (for himself and At page 187, line 8, replace ‘‘(f)’’ with ‘‘(g)’’. participant and its affiliated group as shown Mr. LEAHY)) to the bill S. 852, to create At page 196, line 20, replace ‘‘(d)’’ with in historical audited financial statements, a fair and efficient system to resolve ‘‘(e)’’. including income statement, balance sheet, claims of victims for bodily injury At page 196, line 22, replace ‘‘(m)’’ with and statement of cash flow, for the three fis- caused by asbestos exposure, and for ‘‘(n)’’. cal years ending immediately prior to the other purposes; which was ordered to At page 197, line 13, replace ‘‘(h)’’ with application and projected financial state- ‘‘(i)’’. ments for the three fiscal years following the lie on the table; as follows: At page 198, line 11, replace ‘‘(d)’’ with application; SEC. 1. PROPORTIONAL PAYMENTS. ‘‘(e)’’. (2) an analysis of capital spending and (a) At page 171, after line 5, insert new (c) At page 198, line 16, replace ‘‘(h)’’ with fixed charge coverage on a historical basis as follows, the subsection references assume ‘‘(i)’’. for the three fiscal years immediately pre- that the required renumbering has occurred: At page 198, line 17, replace ‘‘(j)’’ with ceding a defendant participant’s application ‘‘(c) LIMITATION.—For any affiliated group, ‘‘(k)’’. and for the three fiscal years following the the total payment in any year, including any At page 198, line 23, replace ‘‘(d)’’ with application; guaranteed payment surcharge under sub- ‘‘(e)’’. (3) any payments or transfers of property section (m) and any bankruptcy trust guar- At page 199, line 10, replace ‘‘(h)’’ with made, or obligations incurred, within the antee surcharge under section 222(c), shall ‘‘(i)’’. preceding 6 years by the defendant partici- not exceed the lesser of $16,702,400 or 1.67024 At page 199, line 12, replace ‘‘(d) and (m)’’ pant to or for the benefit of any insider as percent of the revenues of the affiliated with ‘‘(e) and (n)’’. defined under section 101(31) of title 11 of the group for the most recent fiscal year ending At page 199, line 20, replace ‘‘(k)’’ with United States Code or any affiliate as de- on or prior to December 31, 2002, or for the ‘‘(l)’’. fined under section 101(2) of title 11 of the most recent 12-month fiscal year as of the At page 199, line 22, replace ‘‘(h)’’ with United States Code; date the limitation is applied, whichever is ‘‘(i)’’. (4) any prior extraordinary transactions greater. For purposes of this subsection, the At page 200, line 3, replace ‘‘(h)’’ with ‘‘(i)’’. within the preceding 6 years involving the term ‘‘affiliated group’’ shall include any de- At page 200, line 7, replace ‘‘(d), (t), (g), and defendant participant, including without fendant participant that is an ultimate par- (m)’’ with ‘‘(e), (g), (h) and (n)’’. limitation payments of extraordinary sala- At page 200, line 22, replace ‘‘(d), (t), and ent. The limitation in this subsection shall ries, bonuses, or dividends; (g)’’ with ‘‘(e), (g), and (h)’’. not apply to defendant participants in Tier I (5) the defendant participant’s ability to At page 201, line 5, replace ‘‘(i)(9)’’ with or to any affiliated group whose revenues for satisfy its payment obligations to the Fund ‘‘(j)(9)’’. the most recent fiscal year ending on or by borrowing or financing with equity cap- At page 203, line 6, replace ‘‘204(i)’’ with prior to December 31, 2002, or for the most re- ital, or through issuance of securities of the ‘‘204(j)’’. cent 12-month fiscal year as of the date the defendant participant or its affiliated group At page 204, line 23, replace ‘‘204(d)’’ with limitation applied, whichever is greater, ex- to the Fund; ‘‘204(e)’’. ceeds $1,000,000,000. The revenues of the affili- At page 205, line 11, replace ‘‘(i)(10)’’ with (6) the defendant participant’s ability to ated group shall be determined in accordance ‘‘(j)(10)’’. delay discretionary capital spending; and with section 203(a)(2), except for the applica- At page 205, line 16, replace ‘‘204(h)’’ with (7) any other factor that the administrator ble date. An affiliated group that claims a ‘‘204(i)’’. considers relevant. reduction in its payment in any year shall At page 248, line 21, replace ‘‘204(f)(3)’’ with (C) TERM.—A financial hardship adjust- file with the administrator, in accordance ‘‘204(g)(3)’’. ment under this paragraph shall have a term with procedures prescribed by the adminis- At page 261, line 14, replace ‘‘204(i)(10)’’ of 5 years unless the administrator deter- trator, sufficient information to allow the with ‘‘204(j)(10)’’. mines at the time the adjustment is made administrator to determine the amount of At page 266, line 14, replace ‘‘204(f)’’ with that a shorter or longer period is appropriate any such reduction in that year. If as a re- ‘‘204(g)’’. in the light of the financial condition of the sult of the application of the limitation pro- At page 289, line 9, replace ‘‘204(i)’’ with defendant participant and its affiliated vided in this subsection an affiliated group is ‘‘204(j)’’. group and other relevant factors, provided exempt from paying all or part of a guaran- At page 289, line 11, replace ‘‘204(d)’’ with that a financial hardship adjustment under teed payment surcharge or bankruptcy trust ‘‘204(e)’’. this paragraph shall terminate automati- surcharge, then the reduction in the affili- At page 289, line 12, replace ‘‘204(m)’’ with cally in the event that the defendant partici- ated group’s payment obligation due to the ‘‘204(n)’’. pant holding the adjustment files a petition limitation in this subsection shall be redis- At page 289, line 19, replace ‘‘204(i)’’ with under title 11, United States Code. tributed in accordance with subsection (m). ‘‘204(j)’’. (D) RENEWAL.—A defendant participant Nothing in this subsection shall be construed At page 289, line 20, replace ‘‘204(d)’’ with may renew a hardship adjustment upon expi- as reducing the minimum aggregate annual ‘‘204(e)’’. ration by demonstrating that it remains jus- payment obligation of defendant partici- At page 289, line 21, replace ‘‘204(m)’’ with tified. Such renewed hardship adjustments pants as provided in section 204(i)(1).’’ ‘‘204(n)’’. shall have a term of 5 years unless the ad- (b) Renumber subsections following new At page 289, line 23, replace ‘‘204(i)(10)’’ ministrator determines at the time of the re- subsection (c). with ‘‘204(j)(10)’’. newed adjustment that a shorter or longer

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00174 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1309 period is appropriate in the light of the fi- the defendant participant’s payment obliga- create a fair and efficient system to re- nancial condition of the defendant partici- tion shall be further reduced by the dif- solve claims of victims for bodily in- pant and its affiliated group and other rel- ference between the potential reduction pro- jury caused by asbestos exposure, and evant factors, provided that a renewed finan- vided under this subsection and the reduc- for other purposes; which was ordered cial hardship adjustment under this para- tions that the defendant participant has al- graph shall terminate automatically in the ready received due to the application of the to lie on the table; as follows: event that the defendant participant holding limitation provided in section 204(c) and the On page 310, lines 15–16, strike ‘‘effect’’ and the adjustment files a petition under title 11, financial hardship adjustment provided insert the following: ‘‘;provided, however, United States Code. under section 204(e)(2). If the reduction in that any provision of such an injunction (E) PROCEDURE.— the defendant participant’s payment obliga- channeling asbestos claims to such a trust (1) The Administrator shall prescribe the tion due to the limitation provided in sec- for resolution shall be of no force and ef- information to be submitted in applications tion 204(c) and any financial hardship adjust- fect.’’ for adjustments under this paragraph. ment provided under section 204(e)(2) exceeds On page 312, line 18, strike ‘‘Notwith- (2) All audited financial information re- the amount of the reduction provided in this standing’’ and all that follows through ‘‘re- quired under this paragraph shall be as re- subsection, then the defendant participant’s tain such jurisdiction.’’ ported by the defendant participant in its payment obligation shall not be further re- On pages 359–60, strike subparagraphs (7) annual report filed with the Securities and duced under this paragraph.’’ and (8) of subsection 405(g) and insert the fol- Exchange Commission in accordance with (c) At page 207, line 10 through 12, strike lowing: the Securities Exchange Act of 1934, 15 the text following ‘‘except’’ in line 10 and in- ‘‘(7) ESTABLISHMENT OF MASTER ASBESTOS U.S.C. 78a et seq. Any defendant participant sert ‘‘as otherwise provided under this para- TRUST.— that does not file reports with the Securities graph. The reductions or waivers provided and Exchange Commission or which does not under this subsection shall not apply to de- (A) CREATION.—Within 120 days after the have audited financial statements shall sub- fendant participants in Tier I, subtiers 2 and determination of the Administrator under mit financial statements prepared pursuant 3, and class action trusts. For defendant par- paragraph (1), the Administrator shall create to generally accepted accounting principles. ticipants whose payment obligation has been a trust to be the successor to the asbestos The chairman, chief executive officer, and limited under section 204(c) or who have re- trusts and any class action trust, to receive chief financial officer of the defendant par- ceived a financial hardship adjustment under funds equal to the amount determined by the ticipant shall certify under penalty of law section 204(e)(2), aggregate potential reduc- Administrator to be necessary to pay the re- the completeness and accuracy of the finan- tions or waivers under this subsection shall maining aggregate obligations to the asbes- cial statements provided under this sub- be calculated on the basis of the defendant tos trusts and any class action trust under paragraph. participant’s tier and subtier without regard paragraphs 1(A)(iii) and 1(B), and to use such (3) The chairman, chief executive officer, to such limitation or adjustment. If the ag- funds for the exclusive purpose of providing and chief financial officer of the defendant gregate potential reductions or waivers benefits in accordance with the terms of this participant shall certify that any projected under this subsection exceed the reduction in [master trust section?] to persons who would information and analyses submitted to the the defendant participant’s payment obliga- have held valid asbestos claims against the administrator were made in good faith and tion due to the limitation under section asbestos trusts or any class action trust had are reasonable and attainable. 204(c) and the financial hardship adjustment the Fairness in Asbestos Resolution Act of (b) CONFORMING CHANGES.— under section 204(e)(2), then the defendant [2006] not been enacted and to otherwise de- At page 177, line 10, strike ‘‘hardship and’’. participant’s payment obligation shall be fray the reasonable expenses of admin- At page 178, lines 19–20, strike ‘‘financial further reduced by the difference between istering the master trust. hardship adjustments under paragraph (2) the potential reductions or waivers provided (B) JURISDICTION.—The United States Dis- and’’. under this subsection and the reductions trict Court for the District of Columbia shall At page 178, lines 22–23, strike ‘‘—(A).’’. that the defendant participant has already have exclusive jurisdiction, without regard At page 179, line 2, insert a period after received due to the application of the limita- to amount in controversy, over the master ‘‘(k)(1)(A)’’ and delete ‘‘;or’’. tion provided in section 204(c) and the finan- trust and all civil actions involving the ap- At pages 179–181, strike line 10 on page 179 cial hardship adjustment provided under sec- plication and construction of this subpara- through line 2 on page 181. tion 204( e )(2). If the reduction in the defend- graph and the trust documents, including At page 181, at line 3: Insert ‘‘RULE- ant participant’s payment obligation due to any action for the payment of benefits due MAKING AND’’ before ‘‘ADVISORY’’. the limitation provided in section 204(c) and under the terms of this subparagraph after At page 181, line 5: Strike ‘‘shall’’ and in- any the financial hardship adjustment pro- exhaustion of trust remedies and any action sert ‘‘may’’. vided under section 204(e)(2) exceeds the for breach of fiduciary duty on the part of At page 181, following line 14, insert: ‘‘The amount of the reductions or waivers pro- any fiduciary of the master trust. Administrator may adopt rules consistent vided in this subsection, then the defendant (C) TRUSTEES.—The district court shall ap- with this Act to make the determination of participant’s payment obligation shall not point, upon petition by the Administrator hardship and inequity adjustments more effi- be further reduced under this paragraph.’’ after consultation with the Advisory Com- cient and predictable.’’. SEC. 4. ECONOMICALLY DISTRESSED INDUS- mittee, three trustees to administer the At page 197, line 8, strike ‘‘HARDSHIP TRIES. master trust. Each trustee, and any suc- AND’’. (a) On page 145, between lines 8 and 9, in- cessor to each trustee, must be independent, At page 197, line 15, strike ‘‘hardship and’’. sert the following: free of any adverse interest and have suffi- At page 197, line 19, strike ‘‘hardship and’’. ‘‘(4) ECONOMICALLY DISTRESSED INDUS- cient qualifications and experience to fulfill At page 197, lines 24 and 25, strike ‘‘severe TRY.—The term ‘‘economically distressed in- the responsibilities described in this section. financial hardship or’’. dustry’’ means an industry, defined by a pri- (D) TRUST ADVISORY COMMITTEE.—The Ad- SEC. 3. STEPDOWNS AND FUNDING HOLIDAYS. mary 5–digit NAICS code, wherein two or ministrator, in consultation with the Advi- (a) At page 205, line 20, strike ‘‘The’’ and more defendant participants are in Subtier sory Committee, shall appoint three persons insert: ‘‘Except as otherwise provided in this of Tier II, under sections 202 and 203, and at to represent the interests of trust bene- paragraph, the’’ least two-thirds of such Tier II defendant ficiaries as members of a trust advisory com- (b) At page 205, lines 22 through 24 strike: participants suffered net operating losses in mittee to consult with and advise the trust- ‘‘, except with respect to defendant partici- their U.S. manufacturing business in 2005.’’ ees respecting the administration of the pants in Tier I, Subtiers 2 and 3, and class ac- (b) On page 204, line 3, insert ‘‘— (i)’’ before master trust and resolution of asbestos tion trusts’’ and insert the following: ‘‘impose’’. claims. At least one of the members of the ‘‘. The reductions under this subsection On page 204, line 6, strike the period and trust advisory committee shall be selected shall not apply to defendant participants in insert ‘‘; or’’. from among individuals recommended by Tier I, subtiers 2 and 3, and class action On page 204, insert between lines 6 and 7 recognized national labor federations, and at trusts. For defendant participants whose the following: least one of the members of the trust advi- ‘‘(ii) notwithstanding paragraph (1), impose payment obligation has been limited under sory committee shall be experienced in rep- in any year a surcharge under this sub- section 204( c) or who have received a finan- resenting the interests of trust beneficiaries. section on any defendant participant in an cial hardship adjustment under section (E) LEGAL REPRESENTATIVE.—The district economically distressed industry in excess of 204(e)(2), aggregate potential reductions court shall appoint, upon petition by the Ad- 15 percent of the amount set forth for Tier II, under this subsection shall be calculated on ministrator after consultation with the Ad- Subtier 1 defendant participants under sec- the basis of the defendant participant’s tier visory Committee, a legal representative of tion 203(c)(2)(A).’’ and subtier without regard to such limita- persons who may in the future have claims tion or adjustment. If the aggregate poten- Mr. KYL submitted an against the master trust for the purpose of tial reduction under this subsection exceeds SA 2851. protecting the rights of such persons respect- the reduction in the defendant participant’s amendment intended to be proposed to ing the master trust and consulting with and payment obligation due to the limitation amendment SA 2746 proposed by Mr. advising the trustees respecting the adminis- under section 204( c) and the financial hard- FRIST (for Mr. SPECTER (for himself tration of the master trust and resolution of ship adjustment under section 204(e)(2), then and Mr. LEAHY)) to the bill S. 852, to asbestos claims. The legal representative,

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00175 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1310 CONGRESSIONAL RECORD — SENATE February 14, 2006 and any successor to the legal representa- trust’s disallowance or other treatment of Year after Enactment Applicable tive, must be independent, free of any ad- claims for benefits. in Which the Termi- Percentage verse interest and have sufficient qualifica- (I) MEDICAL CRITERIA.—The trustees, in nation is Effective tions and experience to fulfill the respon- consultation with the trust advisory com- 4 ...... 82.40 sibilities described in this section. The legal mittee and the legal representative, shall 5 ...... 76.97 representative shall have standing to appear adopt and maintain uniform medical criteria 6 ...... 71.66 and be heard as a representative of the fu- that fairly reflect a current state of applica- 7 ...... 66.50 ture asbestos claimants in any civil action ble law and scientific and medical knowl- 8 ...... 61.48 before the district court relating to the mas- edge. The trustees may adopt the medical 9 ...... 56.61 ter trust. The legal representative shall not criteria of section 121. 10 ...... 52.01 represent the interests of any person who has (J) AWARD AMOUNTS.—The trustees, in con- 11 ...... 47.65 filed a claim for benefits against the master sultation with the trust advisory committee 12 ...... 43.52 trust with respect to such claim. and the legal representative, shall adopt a 13 ...... 39.62 (F) TRUST DOCUMENTS.—The Adminis- matrix of award amounts for disease cat- 14 ...... 35.96 trator, in consultation with the Advisory egories that applies to all claimants who 15 ...... 32.55 Committee, shall create such trust docu- qualify for payment under the medical cri- 16 ...... 29.36 ments as may be necessary to create and teria and claims resolution procedures. The 17 ...... 26.39 govern the operations of the master trust. trustees may adopt the matrix of award 18 ...... 23.65 19 ...... 21.11 The trust documents shall contain provi- amounts of section 131 or such other matrix 20 ...... 18.76 sions that (i) address the payment of com- that the trustees determine provides similar 21 ...... 16.62 benefits for similar claims and fairly reflects pensation to and reimbursement of necessary 22 ...... 14.66 the liability of the entities whose liabilities and reasonable expenses of the trustees, 23 ...... 12.86 trust advisory committee members and legal were channeled to the asbestos trusts and 24 ...... 11.24 representative, and appointment of succes- any class action trust. 25 ...... 9.78 sors to such persons, subject to approval by (K) PAYMENTS TO CLAIMANTS.—The trustees 26 ...... 8.48 the district court in the case of successors to shall pay each qualifying claimant a benefit 27 ...... 7.32 the trustees and legal representative, and (ii) equal to the product of the master trust pay- 28 ...... 6.29 provide for the master trust’s obligation to ment percentage and the award amount to 29 ...... 5.37 defend and indemnify the Administrator, such claimant. The master trust payment 30 ...... 4.55 trustees, members of the trust advisory com- percentage at any given time shall be deter- 31 ...... 3.83 mittee, legal representative and their respec- mined by the trustees based on their periodic 32 ...... 3.20 tive successors against and from legal ac- evaluation of the master trust’s assets and 33 ...... 2.66 tions and related losses to the extent that a projected claims as described in subpart 34 ...... 2.18 corporation is permitted under the laws of (H)(i) of this subparagraph. 35 ...... 1.77 Delaware to defend and indemnify its offi- (L) AMENDMENTS.—The trustees, in con- 36 ...... 1.42 cers and directors. sultation with the trust advisory committee 37 ...... 1.13 (G) DUTY OF TRUSTEES.—The trustees shall and legal representative, may amend the 38 ...... 0.89 administer the master trust in accordance trust documents, the claims resolution pro- 39 ...... 0.70 with the terms of this subparagraph and the cedures, the medical criteria and the award 40 ...... 0.54 Trust Documents for the exclusive purpose matrix to the extent necessary to more effec- 41 ...... 0.40 of providing benefits to persons with valid tively and efficiently carry out the purpose 42 ...... 0.29 claims against the master trust and other- of the master trust. Further, if the sub- 43 ...... 0.19 wise defraying the reasonable expenses of ad- stantive consolidation of the asbestos trusts 44 ...... 0.12 ministering the master trust, and shall man- and any class action trust effected by this 45 ...... 0.05 age and invest the assets of the trust with subsection is held to be unconstitutional, the 46 and thereafter ...... 0.00’’ the care, skill, prudence, and diligence, trustees shall adopt amendments to the On page 360, line 21, strike the period and under like circumstances prevailing at the trust documents, claims resolution proce- insert the following: time, that a prudent person acting in like ca- dures, medical criteria and award matrix as ‘‘; provided, however, that any individual pacity and manner would use. may be necessary to bring the master trust who would have held a valid asbestos claim (H) CLAIMS RESOLUTION PROCEDURES.—The in compliance with the Constitution, includ- against any asbestos trust or class action trustees, in consultation with the trust advi- ing if necessary amendments requiring, for trust had the Fairness in Asbestos Resolu- sory committee and the legal representative, each such trust, separate claims resolution tion Act not been enacted may obtain relief shall adopt claims resolution procedures procedures, award amounts and accounting on account of such claim only from the mas- that provide for fair and expeditious pay- of assets and liabilities. ter trust described in subparagraph (g)(7) in ment of benefits to all persons described in (8) PAYMENT TO MASTER TRUST.—The accordance with the provisions of such sub- subpart A of this subparagraph. The claims amount determined by the Administrator to paragraph.’’ resolution procedures adopted and imple- be necessary to pay the remaining aggregate On page 364, line 4, strike ‘‘; and’’ and in- mented by the trustees shall contain the fol- obligations to the asbestos trusts and any sert a period. lowing features: class action trust under paragraphs 1(A)(iii) On page 364, strike lines 5–14. (i) pro rata distributions of award amounts and 1(B) shall be transferred to the master that are subject to adjustment, if necessary, trust within 90 days of termination under SA 2852. Mr. DURBIN submitted an based on periodic evaluations of the value of this subsection. Any individual with a valid amendment intended to be proposed to the master trust’s assets and estimates of asbestos claim against any asbestos trust or amendment SA 2746 proposed by Mr. the numbers and values of present and future class action trust shall be entitled to seek FRIST (for Mr. SPECTER (for himself and asbestos claims for benefits that may be relief on account of such claim from the Mr. LEAHY)) to the bill S. 852, to create awarded by the master trust and other mech- master trust described in subparagraph (7) in anisms that provide reasonable assurance accordance with the provisions of such sub- a fair and efficient system to resolve that the master trust will value, and be in a paragraph.’’ claims of victims for bodily injury financial position to pay, similarly situated On page 357, strike lines 12 through 24 and caused by asbestos exposure, and for asbestos claims presented to it that involve insert the following: other purposes; which was ordered to similar diseases in substantially the same ‘‘(B) REMAINING OBLIGATIONS.—For pur- lie on the table; as follows: manner; poses of subparagraph (A)(ii)(II), the remain- On page 243, strike lines 16 through 22. (ii) proof requirements, claim submission ing obligations to the asbestos trust of the procedures, and claim evaluation and allow- debtor and the class action trust shall be de- SA 2853. Mr. DURBIN submitted an ance procedures that provide for expeditious termined by multiplying the amount of as- amendment intended to be proposed to filing and evaluation of all asbestos claims sets transferred to the Fund by such debtor submitted to the master trust; or class action trust by the applicable per- amendment SA 2746 proposed by Mr. (iii) provisions for priority review and pay- centage set forth in the following schedule FRIST (for Mr. SPECTER (for himself and ment of claimants whose circumstances re- depending on the year in which a termi- Mr. LEAHY)) to the bill S. 852, to create quire expedited evaluation and compensa- nation shall take effect under paragraph (2). a fair and efficient system to resolve tion; The applicable percentage shall be adjusted claims of victims for bodily injury (iv) exposure requirements for asbestos between years by quarter-annual increments. caused by asbestos exposure, and for claimants to qualify for a remedy that fairly Year after Enactment Applicable reflect the legal responsibility of at least one other purposes; which was ordered to in Which the Termi- Percentage lie on the table; as follows: entity whose liabilities were channeled to an nation is Effective asbestos trust or any class action trust; and 1 ...... 100.00 On page 243, strike line 6 and all that fol- (v) review and dispute resolution proce- 2 ...... 93.95 lows through page 244, line 14, and insert the dures for disputes regarding the master 3 ...... 87.98 following:

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00176 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1311 (b) BORROWING AUTHORITY.—The Adminis- SA 2856. Mr. DURBIN submitted an SA 2859. Mr. DURBIN submitted an trator is authorized to borrow, in any cal- amendment intended to be proposed to amendment intended to be proposed to endar year, an amount not to exceed antici- amendment SA 2746 proposed by Mr. amendment SA 2746 proposed by Mr. pated contributions to the Fund in the fol- lowing calendar year for purposes of carrying FRIST (for Mr. SPECTER (for himself and FRIST (for Mr. SPECTER (for himself and out the obligations of the Fund under this Mr. LEAHY)) to the bill S. 852, to create Mr. LEAHY)) to the bill S. 852, to create Act. a fair and efficient system to resolve a fair and efficient system to resolve claims of victims for bodily injury claims of victims for bodily injury SA 2854. Mr. DURBIN submitted an caused by asbestos exposure, and for caused by asbestos exposure, and for amendment intended to be proposed to other purposes; which was ordered to other purposes; which was ordered to amendment SA 2746 proposed by Mr. lie on the table; as follows: lie on the table; as follows: FRIST (for Mr. SPECTER (for himself and On page 67, between lines 10 and 11, insert On page 123, between lines 2 and 3, insert Mr. LEAHY)) to the bill S. 852, to create the following: the following: a fair and efficient system to resolve (g) PRECONDITIONS FOR CERTIFICATION.—For SEC. 122. EXTENSION OF CERTAIN BENEFITS TO claims of victims for bodily injury the purpose of this section, the Adminis- OTHERS SUBJECT TO COMMUNITY caused by asbestos exposure, and for trator is prohibited from certifying the Fund EXPOSURE TO ASBESTOS. other purposes; which was ordered to as operational until the Administrator has— (a) WAIVER FOR RESIDENTS OF WEST CHI- lie on the table; as follows: (1) finalized the tier designation and CAGO, ILLINOIS.—The Administrator shall waive the exposure requirements under this On page 243, strike lines 16 through 22 and amount of assessment to each participating subtitle for individuals who lived or worked insert the following: defendant or insurer; and within 10 miles of the former W.R. Grace & (2) FEDERAL FINANCING BANK.— (2) determined from such designations that Company facility in West Chicago, Illinois, (A) IN GENERAL.—In addition to the general such assessments will produce the annual for at least 12 consecutive months before De- authority in paragraph (1), the Adminis- statutory revenues required under title II. cember 31, 2004. Claimants under this sub- trator may borrow from the Federal Financ- section shall provide such supporting docu- ing Bank in accordance with section 6 of the SA 2857. Mr. DURBIN submitted an mentation as the Administrator shall re- Federal Financing Bank Act of 1973 (12 amendment intended to be proposed to quire. U.S.C. 2285) in an amount not to exceed amendment SA 2746 proposed by Mr. (b) CLAIMS PROCEDURES FOR WEST CHICAGO, $5,000,000,000 for performance of the Adminis- FRIST (for Mr. SPECTER (for himself and ILLINOIS.—The claims procedures described trator’s duties under this Act for the first 5 Mr. LEAHY)) to the bill S. 852, to create under section 121(g)(8) relating to Libby, years. a fair and efficient system to resolve Montana, claimants shall also apply to any (B) INTEREST TO BE CHARGED.— claims of victims for bodily injury eligible claimants who resided within 10 (i) IN GENERAL.—Any funds borrowed under miles of the former W.R. Grace & Company subparagraph (A) shall be charged interest at caused by asbestos exposure, and for other purposes; which was ordered to facility in West Chicago, Illinois. the private market prime lending rate and (c) WEST CHICAGO, ILLINOIS CLAIMANTS.— repaid not later than 18 months after the lie on the table; as follows: Nothing in this Act shall preclude the forma- date on which such funds were borrowed. On page 183, between lines 17 and 18, insert tion of a fund for the payment of eligible (ii) SURCHARGE.—The Administrator shall the following: medical expenses related to treating asbes- impose a surcharge on defendants and insur- (4) CERTAIN CONSOLIDATIONS PROHIBITED.— tos-related disease for individuals who re- ers to meet the repayment obligations under Notwithstanding paragraphs (1) through (3), side, or resided, within 10 miles of the former clause (i) and paragraph (4). the following consolidations are prohibited: W.R. Grace & Company facility in West Chi- (A) Any consolidation, including a consoli- Mr. DURBIN submitted an cago, Illinois. The payment of any such med- SA 2855. dation involving intra-company or inter- ical expenses shall not be collateral source amendment intended to be proposed to company affiliates, that would lessen the compensation, as defined under section amendment SA 2746 proposed by Mr. amount that otherwise would be collected by 134(a). FRIST (for Mr. SPECTER (for himself and the Administrator under Title II. Mr. LEAHY)) to the bill S. 852, to create (B) Any consolidation, including a consoli- SA 2860. Mr. SCHUMER submitted an a fair and efficient system to resolve dation involving intra-company or inter- amendment intended to be proposed to claims of victims for bodily injury company affiliates, that would reduce the amendment SA 2746 proposed by Mr. payment amount of any participating de- caused by asbestos exposure, and for FRIST (for Mr. SPECTER (for himself and other purposes; which was ordered to fendant in a consolidation that has greater liabilities than another participating defend- Mr. LEAHY)) to the bill S. 852, to create lie on the table; as follows: ant in the same consolidation. a fair and efficient system to resolve On page 186, between lines 4 and 5, insert claims of victims for bodily injury the following: SA 2858. Mr. DURBIN submitted an caused by asbestos exposure, and for (2) INSUFFICIENT FUNDS IN YEARS 1 THOUGH amendment intended to be proposed to other purposes; which was ordered to 6.— amendment SA 2746 proposed by Mr. lie on the table; as follows: (A) IN GENERAL.—Notwithstanding any pro- vision of sections 202 or 203 or this section, FRIST (for Mr. SPECTER (for himself and On page 392, after line 5, insert the fol- during the 6-year period beginning on the Mr. LEAHY)) to the bill S. 852, to create lowing: date of enactment of this Act, if at any time a fair and efficient system to resolve SEC. 503. INTERSTATE COMPACTS AND CAPTIVE during such period the Administrator deter- claims of victims for bodily injury INSURANCE COMPANY. (a) DEFINITION OF PERSON.—The term per- mines that there are insufficient funds avail- caused by asbestos exposure, and for able to pay all qualifying claims that have son as defined in section 3(13) shall not in- other purposes; which was ordered to clude the captive insurance company estab- been received and to satisfy all other obliga- lie on the table; as follows: tions of the Fund, the Administrator shall lished and funded under title III of division K impose on each defendant participant in Tier On page 14, strike line 19 and all that fol- of the Consolidated Appropriations Resolu- I and Tier II a surcharge in such amounts as lows through page 15, line 2, and insert the tion, 2003 (Public Law 108–7; 117 Stat. 517). (b) DEFINITION OF STATE.—The term State necessary to meet the cost of paying such following: as defined in section 3(14) shall include enti- claims and satisfying such other obligations. (6) COLLATERAL SOURCE COMPENSATION.— ties created by interstate compact. (B) PRO RATA BASIS.—Any surcharge im- (A) IN GENERAL.—The term ‘‘collateral posed under subparagraph (A) shall be im- source compensation’’ means the net com- pensation that the claimant received, or is SA 2861. Mr. FEINGOLD submitted posed on a prorated basis in accordance with an amendment intended to be proposed the liability of each defendant participant entitled to receive, from a defendant or an established under sections 202 and 203. insurer of that defendant, or compensation to amendment SA 2746 proposed by Mr. On page 186, line 5, strike ‘‘(2)’’ and insert trust as a result of a final judgment or set- FRIST (for Mr. SPECTER (for himself and ‘‘(3)’’. tlement for an asbestos-related injury that is Mr. LEAHY)) to the bill S. 852, to create On page 186, line 15, strike ‘‘(3)’’ and insert the subject of a claim filed under section 113. a fair and efficient system to resolve ‘‘(4)’’. (B) NET COMPENSATION.—Amounts paid or claims of victims for bodily injury On page 243, strike lines 7 through 15, and incurred by the claimant for legal or related insert the following: expenses in connection with the asbestos-re- caused by asbestos exposure, and for (3) BORROWING CAPACITY.—The Adminis- lated injury shall be excluded in computing other purposes; which was ordered to trator is authorized to borrow, in any cal- the reduction under this paragraph. Such lie on the table; as follows: endar year, an amount not to exceed antici- legal or related expenses may be evidenced On page 199, line 25, insert ‘‘in Tier II’’ pated contributions to the Fund in the fol- by an award, written agreement, or court after ‘‘participant’’. lowing calendar year for purposes of carrying order in a State or Federal proceeding or by out the obligations of the Fund under this such other evidence as the Administrator SA 2862. Mr. FEINGOLD submitted Act. may require. an amendment intended to be proposed

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00177 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1312 CONGRESSIONAL RECORD — SENATE February 14, 2006 to amendment SA 2746 proposed by Mr. ational and paying all valid asbestos claims greater than, $200,000,000 but less than FRIST (for Mr. SPECTER (for himself and at a reasonable rate, the plaintiff’s claim is $300,000,000 shall pay, on an annual basis, an Mr. LEAHY)) to the bill S. 852, to create pending in any venue other than a venue de- amount equal to 200 percent of the amount a fair and efficient system to resolve scribed under section 405(g)(3). for the subtier to which that person or affili- (E) NOTICE.—The Administrator shall send ated group is assigned under this subsection. claims of victims for bodily injury notice to the appropriate Federal or State (B) Each person or affiliated group with caused by asbestos exposure, and for court of any adjudication of any claim with prior asbestos expenditures equal to, or other purposes; which was ordered to the Fund filed by a plaintiff in an action greater than, $300,000,000 but less than lie on the table; as follows: that has been stayed under subparagraph $400,000,000 shall pay, on an annual basis, an On page 392, after line 5, insert the fol- (D)(i). amount equal to 250 percent of the amount lowing: (F) RULE OF CONSTRUCTION.—Nothing in for the subtier to which that person or affili- SEC. 503. NON-SEVERABILITY. this paragraph shall be construed to limit ated group is assigned under this subsection. Notwithstanding section 226(f), if any pro- dismissal, at any time, of a claim pending in (C) Each person or affiliated group with vision of this Act, an amendment made by Federal or State court for reasons inde- prior asbestos expenditures equal to, or this Act, or the application of such provision pendent of the enactment of this Act. greater than, $400,000,000 but less than or amendment to any person or cir- $500,000,000 shall pay, on an annual basis, an cumstance is held to be unconstitutional, SA 2864. Mr. BIDEN submitted an amount equal to 300 percent of the amount the remainder of this Act, the amendments amendment intended to be proposed to for the subtier to which that person or affili- made by this Act, and the application of the amendment SA 2746 proposed by Mr. ated group is assigned under this subsection. provisions of such to any person or cir- FRIST (for Mr. SPECTER (for himself and (D) Each person or affiliated group with cumstance shall have no force and effect. Mr. LEAHY)) to the bill S. 852, to create prior asbestos expenditures equal to, or a fair and efficient system to resolve greater than, $500,000,000 shall pay, on an an- SA 2863. Mr. FEINGOLD submitted claims of victims for bodily injury nual basis, an amount equal to 350 percent of the amount for the subtier to which that per- an amendment intended to be proposed caused by asbestos exposure, and for to amendment SA 2746 proposed by Mr. son or affiliated group is assigned under this other purposes; which was ordered to subsection. FRIST (for Mr. SPECTER (for himself and lie on the table; as follows: Mr. LEAHY)) to the bill S. 852, to create On page 67, between lines 10 and 11, insert SA 2866. Mr. BIDEN submitted an a fair and efficient system to resolve the following: amendment intended to be proposed to claims of victims for bodily injury (g) PRECONDITIONS FOR CERTIFICATION.—For amendment SA 2746 proposed by Mr. caused by asbestos exposure, and for the purpose of this section, the Adminis- FRIST (for Mr. SPECTER (for himself and other purposes; which was ordered to trator is prohibited from certifying the Fund as operational until the Administrator has— Mr. LEAHY)) to the bill S. 852, to create lie on the table; as follows: (1) finalized the tier designation and a fair and efficient system to resolve On page 325, strike line 17 and all that fol- amount of assessment to each participating claims of victims for bodily injury lows through page 326, line 2, and insert the defendant or insurer; and caused by asbestos exposure, and for following: (2) determined from such designations that other purposes; which was ordered to (4) DISMISSAL.— such assessments will produce the annual lie on the table; as follows: (A) IN GENERAL.—Except as provided under statutory revenues required under title II. On page 46, line 20, strike ‘‘date of enact- subsection (d)(2), no judgment other than a ment of this Act’’ and insert ‘‘effective date judgment for dismissal may be entered in SA 2865. Mr. BIDEN submitted an of this subsection’’. any action asserting an asbestos claim (in- amendment intended to be proposed to On page 392, after line 5, insert the fol- cluding any claim described in paragraph (2)) amendment SA 2746 proposed by Mr. lowing: in any Federal or State court on or after the FRIST (for Mr. SPECTER (for himself and TITLE VI—EFFECTIVE DATE date of enactment of this Act. Mr. LEAHY)) to the bill S. 852, to create SEC. 601. EFFECTIVE DATE. (B) DISMISSAL ON MOTION.—A court may dismiss any action asserting an asbestos a fair and efficient system to resolve Notwithstanding any other provision of claim (including any claim described in para- claims of victims for bodily injury this Act, section 106(f) and section 403 shall graph (2)) on— caused by asbestos exposure, and for not become effective until— (i) motion by any party to such action; or other purposes; which was ordered to (1) the Administrator has met the public (ii) its own motion. lie on the table; as follows: notice requirements for defendant and in- surer participants under section (C) DENIAL OF MOTION.—If a court denies a On page 162, line 22 strike all through page 204(i)(6)(A)(ii) and section 212(b)(1); motion to dismiss under subparagraph (B)(i), 163, line 22, and insert the following: (2) defendant and insurer participants have it shall stay further proceedings in any such (c) TIER II SUBTIERS.— made their initial payments under section action until final disposition of any appeal (1) IN GENERAL.—Each person or affiliated taken under this Act. group in Tier II shall be included in 1 of the 204(i)(6)(C) and section 212(e); and (3) the Administrator has certified that the (D) EXCEPTION FOR PENDING CLAIMS IN 5 subtiers of Tier II, based on the revenues of aggregate payments by defendant and in- COURT.— such person or affiliated group. Such surer participants are sufficient to satisfy (i) IN GENERAL.—Except as provided under subtiers shall each contain as close to an subsection (d)(2) and clause (ii) of this sub- equal number of total persons and affiliated the requirements of section 204(h)(1) and sec- paragraph, an action asserting an asbestos groups as possible, with— tion 212(a)(3)(C)(i) for the first calendar year claim that is pending on the date of enact- (A) those persons or affiliated groups with of the Fund. ment of this Act in any Federal or State the highest revenues included in subtier 1; SA 2867. Mr. BIDEN submitted an court may not be dismissed under subpara- (B) those persons or affiliated groups with amendment intended to be proposed to graph (A), but any stay shall continue in ef- the next highest revenues included in subtier fect, if the plaintiff (or the personal rep- 2; amendment SA 2746 proposed by Mr. resentative of the plaintiff, if the plaintiff is (C) those persons or affiliated groups with FRIST (for Mr. SPECTER (for himself and deceased or incompetent) in such action has the lowest revenues included in subtier 5; Mr. LEAHY)) to the bill S. 852, to create filed a claim, or is still entitled under sec- (D) those persons or affiliated groups with a fair and efficient system to resolve tion 113(b) to file a claim, with the Fund the next lowest revenues included in subtier claims of victims for bodily injury with respect to the disease, condition, or in- 4; and caused by asbestos exposure, and for jury forming the basis of such action. (E) those persons or affiliated groups re- other purposes; which was ordered to (ii) DISMISSAL ALLOWED IF CLAIM IS ADJU- maining included in subtier 3. lie on the table; as follows: DICATED.—An action exempt from dismissal (2) PAYMENTS.—Except as adjusted by para- On page 291, between lines 12 and 13, insert under clause (i) shall be dismissed if— graph (3), each person or affiliated group the following: (I) the plaintiff’s claim under the Fund has within each subtier shall pay, on an annual (c) JUDICIAL STAYS.—Notwithstanding sub- been finally adjudicated and the award, if basis, the following: sections (d) and (e) of section 403, if this Act any, to the plaintiff from the Fund has been (A) Subtier 1: $27,500,000. is stayed by judicial order, pending judicial paid in full; (B) Subtier 2: $24,750,000. review of the constitutionality or enforce- (II) the plaintiff’s claim under the Fund (C) Subtier 3: $22,000,000. ability of this Act, asbestos claims shall be has been finally adjudicated and the claim- (D) Subtier 4: $19,250,000. permitted to continue in Federal or State ant is not entitled to receive a monetary (E) Subtier 5: $16,500,000. court for as long as such stay remains in ef- award or medical monitoring under subtitle (3) ADJUSTMENTS.—The following persons fect. D of title I; or affiliated groups in Tier II shall have their On page 291, line 13, strike ‘‘(c)’’ and insert (III) the plaintiff’s claim has been resolved annual payment to the Fund adjusted as fol- ‘‘(d)’’. and paid in full under section 106(f); or lows: (IV) after the Administrator certifies to (A) Each person or affiliated group with SA 2868. Mr. BIDEN submitted an Congress that the Fund has become oper- prior asbestos expenditures equal to, or amendment intended to be proposed to

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00178 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1313 amendment SA 2746 proposed by Mr. On page 352, line 6, insert ‘‘in full’’ after (bb) the Government Accountability Office FRIST (for Mr. SPECTER (for himself and ‘‘claims’’. has failed to report, pursuant to subsection Mr. LEAHY)) to the bill S. 852, to create On page 352, line 10, insert a period after (j), that the Administrator’s certifications a fair and efficient system to resolve ‘‘claimants’’. under subsection (c) are accurate. On page 352, lines 10 and 11, strike ‘‘and the On page 358, line 2, after ‘‘effect’’ insert claims of victims for bodily injury public.’’ and all that follows through ‘‘Fund’’ ‘‘either— caused by asbestos exposure, and for on line 15. (A) on the date which the Administrator other purposes; which was ordered to On page 353, line 6, strike the semicolon has determined is the date the Fund will not lie on the table; as follows: and insert ‘‘; or’’. have sufficient funds to pay all eligible On page 319, strike lines 3 through 18, and On page 353, line 7, strike ‘‘reform’’ and all claims filed with the Fund and all claims re- insert the following: that follows through line 13. solved prior to that date while satisfying its (i) before the date of enactment of this On page 353, line 14, strike ‘‘changes’’ and financial obligations; or Act, the settlement agreement or confirma- insert ‘‘increases’’. (B) ’’. tion of settlement was authorized by the set- On page 353, lines 16 and 17, strike ‘‘, or On page 358, line 3, strike ‘‘180’’ and insert tling defendant or the settling insurer, and changes in award values)’’ and insert ‘‘in ‘‘90’’. confirmed by, or with, counsel for the set- order to keep the Fund operational’’. On page 358, line 3, strike ‘‘date of a deter- tling defendant or settling insurer; On page 353, line 17, strike ‘‘; or’’ and insert mination of the’’ and all that follows On page 320, between lines 6 and 7, insert a period. through line 6, and insert ‘‘date on which the the following: On page 353, strike lines 18 through 19. certifications described in paragraph (B) AGREEMENTS DEALING WITH MORE THAN 1 On page 354, line 6, strike ‘‘except’’ through (1)(A)(iii) failed to occur.’’. CLAIM.—For the purposes of subparagraph ‘‘212(a)(3)(C).’’ on line 15. On page 359, strike line 24 and all that fol- (A), a settlement agreement which includes On page 355, line 7, insert ‘‘and’’ after lows through page 360, line 4. more than 1 asbestos claim shall only be en- ‘‘fraud,’’. On page 360, line 5, strike ‘‘(8)’’ and insert forceable as to any asbestos claim settled On page 355, line 8, strike all after ‘‘meso- ‘‘(7)’’. within such settlement agreement if— thelioma’’ through line 10 and insert a semi- On page 361, line 13, strike ‘‘MESOTHELIOMA (i) before the date of enactment of this colon. CLAIM’’ and insert ‘‘ADDITIONAL CLAIMS’’. Act, the specific asbestos claim was settled On page 355, strike lines 11 through 14. On page 361, line 17, insert ‘‘a more serious under such settlement agreement for a spe- On page 355, line 15, strike ‘‘(D)’’ and insert condition or’’ after ‘‘a claim for’’. cific sum with a specific named plaintiff; and ‘‘(C)’’. On page 361, line 18, insert ‘‘more serious On page 355, line 18, strike ‘‘(E)’’ and insert (ii) the specific named plaintiff has com- condition or’’ after ‘‘unless the’’. ‘‘(D)’’. plied with subparagraph (A)(iii). On page 362, line 15, strike ‘‘or’’. On page 320, line 7, strike ‘‘(B)’’ and insert On page 355, line 20, strike ‘‘(F)’’ and insert On page 362, line 17, strike the period and ‘‘(C)’’. ‘‘(E)’’. insert a semicolon. On page 320, line 11, strike ‘‘(C)’’ and insert On page 355, strike line 22 and all that fol- On page 362, between lines 17 and 18, insert ‘‘(D)’’. lows through page 356, line 4, and insert the the following: On page 320, line 15, strike ‘‘(D)’’ and insert following: (iv) any State court in a State where the ‘‘(E)’’. (3) TERMINATION PLAN.— company has its headquarters or its prin- On page 320, line 21, strike ‘‘(E)’’ and insert (A) IN GENERAL.—Any recommendation of cipal place of business; or ‘‘(F)’’. termination shall include a plan for termi- (v) any State court in a State where the nating the affairs of the Fund (and the pro- company has at least 10 percent of its em- SA 2869. Mr. BIDEN submitted an gram generally) within a defined period. ployees or 10 percent of its sales. amendment intended to be proposed to (B) PLAN REQUIREMENTS.—The termination On page 362, line 20, strike ‘‘(ii) or (iii)’’ amendment SA 2746 proposed by Mr. plan shall— and insert ‘‘(ii), (iii), (iv), or (v)’’. (i) specify the date on which the Fund will FRIST (for Mr. SPECTER (for himself and On page 363, strike line 1 and all that fol- no longer be able to timely process and pay lows through line 18. Mr. LEAHY)) to the bill S. 852, to create all eligible claims that are filed with the a fair and efficient system to resolve On page 364 strike line 15 and all that fol- Fund while satisfying the other financial ob- lows through page 365 line 4. claims of victims for bodily injury ligations of the Fund; and On page 365 between lines 8 and 9, insert caused by asbestos exposure, and for (ii) provide for paying in full all such eligi- ‘‘(j) GOVERNMENT ACCOUNTABILITY OFFICE RE- other purposes; which was ordered to ble claims and all claims resolved before PORT.—The Government Accountability Of- lie on the table; as follows: that date. fice shall annually review the certifications On page 344, line 16, insert ‘‘(i)’’ before On page 356, between lines 4 and 5, insert required in subsection (c), and any relevant ‘‘who’’. the following: supporting documentation, and report to On page 344, line 17, strike ‘‘calendar’’ and (4) PERIODIC REVIEWS.—The Administrator Congress whether these certifications are ac- insert ‘‘fiscal’’. shall provide updates on any shortfall anal- curate. On page 344, line 19, insert ‘‘and (ii)’’ before ysis to Congress every 6 months, or at such ‘‘who have received’’. shorter intervals as the Administrator deter- SA 2870. Mr. BIDEN submitted an On page 347, strike line 13 and all that fol- mines appropriate. amendment intended to be proposed to On page 356, line 5, strike ‘‘(4)’’ and insert lows through ‘‘Administrator,’’ on line 15, amendment SA 2746 proposed by Mr. and insert the following: ‘‘(5)’’. FRIST (for Mr. SPECTER (for himself and (c) CERTIFICATION.—The Administrator On page 356, line 14, strike ‘‘titles I (except shall certify in the annual report required subtitle A) and II and’’. Mr. LEAHY)) to the bill S. 852, to create under subsection (a)— On page 356, line 15, strike ‘‘403 and a fair and efficient system to resolve (1) that 404(e)(2)’’ and insert ‘‘113, 403, 404, and 406’’. claims of victims for bodily injury On page 347, line 18, strike ‘‘(1)’’ and insert On page 356, line 19 insert ‘‘(I)’’ after ‘‘(ii)’’. caused by asbestos exposure, and for ‘‘(A)’’. On page 356, line 19 strike ‘‘part of the’’ other purposes; which was ordered to and all that follows through ‘‘determines’’ On page 347, line 22, strike ‘‘(2)’’ and insert lie on the table; as follows: ‘‘(B)’’. on line 24, and insert ‘‘a result of the annual On page 347, line 24, strike the period and report, shortfall analysis or periodic reviews On page 143, line 8 strike all through page insert ‘‘; and’’. the Administrator determines’’. 144 line 6 and insert the following: On page 347, after line 24, insert the fol- On page 356, line 25, strike ‘‘claims are re- (7) ASBESTOS PREMISES CLAIM.—The term lowing: solved’’ and insert ‘‘eligible claims are re- ‘‘asbestos premises claim’’— (2) that— ceived’’. (A) means an asbestos claim against a cur- (A) 100 percent of the asbestos claimants On page 357, line 3, strike ‘‘221when’’ and rent or former premises owner or landowner, who filed claims during the prior fiscal year, insert ‘‘221 when’’. or person controlling or possessing premises and who were determined to be eligible to re- On page 357, line 3, insert ‘‘such eligible or land, alleging injury or death caused by ceive compensation under this Act, received claims and all previously’’ after ‘‘all’’. exposure to asbestos on such premises or the compensation to which they are entitled On page 357, line 7 strike ‘‘(I)’’ and insert land or by exposure to asbestos carried off during that fiscal year; and ‘‘(aa)’’. such premises or land on the clothing or be- (B) 100 percent of the total obligations due On page 357, line 9 strike ‘‘(II)’’ and insert longings of another person; and to be paid to eligible claimants in the prior ‘‘(bb)’’. (B) includes any such asbestos claim fiscal year have been paid. On page 357, line 11, strike the period and against a current or former employer alleg- On page 350, strike line 4 and all that fol- insert ‘‘; or’’. ing injury or death caused by exposure to as- lows through page 351, line 21. On page 357, between lines 11 and 12, insert bestos on premises or land owned, controlled, On page 351, line 24, insert ‘‘INITIAL’’ before the following: or possessed by the employer, if that claim is ‘‘ANALYSIS’’. (II)(aa) the Administrator has failed to not a claim for benefits under a workers’ On page 352, line 5, strike ‘‘when’’ and in- make the certifications under subsection (c); compensation law or veteran benefits pro- sert ‘‘the date on which’’. or gram.

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(8) ASBESTOS PREMISES DEFENDANT PARTICI- (B) those persons or affiliated groups with (2) PAYMENT.—Each person or affiliated PANT.—The term ‘‘asbestos premises defend- the next highest revenues included in group within each subtier shall pay, on an ant participant’’ means any defendant par- Subtier 2; annual basis, the following: ticipant for which 90 percent or more of its (C) those persons or affiliated groups with (A) Subtier 1: $3,850,000. prior asbestos expenditures relate to asbes- the lowest revenues included in Subtier 5; (B) Subtier 2: $2,475,000. tos premises claims against that defendant (D) those persons or affiliated groups with (C) Subtier 3: $1,650,000. participant. the next lowest revenues included in Subtier (D) Subtier 4: $550,000. On page 150, strike lines 1 through page 151 4; and (h) TIER VII SUBTIERS.— line 16, and insert the following: (E) those persons or affiliated groups re- (1) IN GENERAL.—Each person or affiliated maining included in Subtier 3. group in Tier VII shall be included in 1 of the (d) TIERS II THROUGH VIII.— (2) PAYMENTS.—Each person or affiliated 3 subtiers of Tier VII, based on the person’s (1) IN GENERAL.—Except as provided in sec- group within each subtier shall pay, on an or affiliated group’s revenues. Such subtiers tion 204 and subsection (b) of this section, annual basis, the following: persons or affiliated groups are included in shall each contain as close to an equal num- (A) Subtier 1: $38,500,000. ber of total persons and affiliated groups as Tier II, III, IV, V, VI, VII, or VIII according (B) Subtier 2: $35,750,000. to the prior asbestos expenditures paid by possible, with those persons or affiliated (C) Subtier 3: $33,000,000. groups with the highest revenues in Subtier such persons or affiliated groups as follows: (D) Subtier 4: $30,250,000. (A) Tier II: $350,000,000 or greater. 1, those with the lowest revenues in Subtier (E) Subtier 5: $27,500,000. 3, and those remaining in Subtier 2. (B) Tier III: $200,000,000 or greater, but less (e) TIER IV SUBTIERS.— than $350,000,000. (2) PAYMENT.—Each person or affiliated (1) IN GENERAL.—Each person or affiliated group within each subtier shall pay, on an (C) Tier IV: $75,000,000 or greater, but less group in Tier IV shall be included in 1 of the than $200,000,000. annual basis, the following: 5 subtiers of Tier IV, based on the person’s or (A) Subtier 1: $1,000,000. (D) Tier V: $50,000,000 or greater, but less affiliated group’s revenues. Such subtiers (B) Subtier 2: $500,000. than $75,000,000. shall each contain as close to an equal num- (C) Subtier 3: $200,000. (E) Tier VI: $10,000,000 or greater, but less ber of total persons and affiliated groups as than $50,000,000. possible, with— (i) TIER VIII SUBTIERS.— (F) Tier VII: $5,000,000 or greater, but less (A) those persons or affiliated groups with (1) IN GENERAL.—Each person or affiliated than $10,000,000. the highest revenues included in Subtier 1; group in Tier VIII shall be included in 1 of (G) Tier VIII: $1,000,000 or greater, but less (B) those persons or affiliated groups with the 3 subtiers of Tier VIII, based on the per- than $5,000,000. the next highest revenues included in son’s or affiliated group’s revenues. Such (2) ASBESTOS PREMISES DEFENDANT PARTICI- Subtier 2; subtiers shall each contain as close to an PANTS.—Asbestos premises defendant partici- (C) those persons or affiliated groups with equal number of total persons and affiliated pants which would be assigned to Tiers IV, the lowest revenues included in Subtier 5; groups as possible, with those persons or af- V, VI, or VII according to their prior asbes- (D) those persons or affiliated groups with filiated groups with the highest revenues in tos expenditures shall instead be assigned to the next lowest revenues included in Subtier Subtier 1, those with the lowest revenues in the immediately lower tier, such that an as- 4; and Subtier 3, and those remaining in Subtier 2. bestos premises defendant participant which (E) those persons or affiliated groups re- (2) PAYMENT.—Each person or affiliated would be assigned to Tier IV shall instead be maining included in Subtier 3. group within each subtier shall pay, on an assigned to Tier V, an asbestos premises de- (2) PAYMENTS.—Each person or affiliated annual basis, the following: fendant participant which would be assigned group within each subtier shall pay, on an (A) Subtier 1: $500,000. to Tier V shall instead be assigned to Tier annual basis, the following: (B) Subtier 2: $250,000. VI, an asbestos premises defendant partici- (A) Subtier 1: $27,500,000. (C) Subtier 3: $100,000. pant which would be assigned to Tier VI (B) Subtier 2: $24,750,000. (j) TIER IX.— shall instead be assigned to Tier VII, and an (C) Subtier 3: $22,000,000. (1) IN GENERAL.—Notwithstanding prior as- asbestos premises defendant participant (D) Subtier 4: $19,250,000. bestos expenditures that might qualify a per- which would be assigned to Tier VII shall in- (E) Subtier 5: $16,500,000. son or affiliated group to be included in Tiers stead be assigned to Tier VIII. (f) TIER V SUBTIERS.— II, III, IV, V, VI, VII, or VIII, a person or af- filiated group shall also be included in Tier On page 162, strike line 22 through page 170, (1) IN GENERAL.—Each person or affiliated IX, if the person or affiliated group— line 9, and insert the following: group in Tier V shall be included in 1 of the 5 subtiers of Tier V, based on the person’s or (A) is or has at any time been subject to (c) TIER II SUBTIERS.— affiliated group’s revenues. Such subtiers asbestos claims brought under the Act of (1) IN GENERAL.—Each person or affiliated shall each contain as close to an equal num- April 22, 1908 (45 U.S.C. 51 et seq.), commonly group in Tier II shall be included in 1 of the ber of total persons and affiliated groups as known as the Employers’ Liability Act, as a 5 subtiers of Tier II, based on the person’s or possible, with— result of operations as a common carrier by affiliated group’s revenues. Such subtiers (A) those persons or affiliated groups with railroad; and shall each contain as close to an equal num- the highest revenues included in Subtier 1; (B) has paid (including any payments made ber of total persons and affiliated groups as (B) those persons or affiliated groups with by others on behalf of such person or affili- possible, with — the next highest revenues included in ated group) not less than $5,000,000 in settle- (A) those persons or affiliated groups with Subtier 2; ment, judgment, defense, or indemnity costs the highest revenues included in Subtier 1; (C) those persons or affiliated groups with relating to such claims. (B) those persons or affiliated groups with the lowest revenues included in Subtier 5; (2) ADDITIONAL AMOUNT.—The payment re- the next highest revenues included in (D) those persons or affiliated groups with quirement for persons or affiliated groups in- Subtier 2; the next lowest revenues included in Subtier cluded in Tier IX shall be in addition to any (C) those persons or affiliated groups with 4; and payment requirement applicable to such per- the lowest revenues included in Subtier 5; (E) those persons or affiliated groups re- son or affiliated group under Tiers II through (D) those persons or affiliated groups with maining included in Subtier 3. VIII. the next lowest revenues included in Subtier (2) PAYMENTS.—Each person or affiliated (3) SUBTIER 1.—Each person or affiliated 4; and group within each subtier shall pay, on an group in Tier IX with revenues of (E) those persons or affiliated groups re- annual basis, the following: $6,000,000,000 or more is included in Subtier 1 maining included in Subtier 3. (A) Subtier 1: $16,500,000. and shall make annual payments of (2) PAYMENTS.—Each person or affiliated (B) Subtier 2: $13,750,000. $11,000,000 to the Fund. group within each subtier shall pay, on an (C) Subtier 3: $11,000,000. (4) SUBTIER 2.—Each person or affiliated annual basis, the following: (D) Subtier 4: $8,250,000. group in Tier IX with revenues of less than (A) Subtier 1: $49,500,000. (E) Subtier 5: $5,500,000. $6,000,000,000, but not less than $4,000,000,000 (B) Subtier 2: $46,750,000. (g) TIER VI SUBTIERS.— is included in Subtier 2 and shall make an- (C) Subtier 3: $44,000,000. (1) IN GENERAL.—Each person or affiliated nual payments of $5,500,000 to the Fund. (D) Subtier 4: $41,250,000. group in Tier VI shall be included in 1 of the (5) SUBTIER 3.—Each person or affiliated (E) Subtier 5: $38,500,000. 4 subtiers of Tier VI, based on the person’s or group in Tier IX with revenues of less than (d) TIER III SUBTIERS.— affiliated group’s revenues. Such subtiers $4,000,000,000, but not less than $500,000,000 is (1) IN GENERAL.—Each person or affiliated shall each contain as close to an equal num- included in Subtier 3 and shall make annual group in Tier III shall be included in 1 of the ber of total persons and affiliated groups as payments of $550,000 to the Fund. 5 subtiers of Tier III, based on the person’s or possible, with those persons or affiliated (6) JOINT VENTURE REVENUES AND LIABIL- affiliated group’s revenues. Such subtiers groups with the highest revenues in Subtier ITY.— shall each contain as close to an equal num- 1, those with the lowest revenues in Subtier (A) REVENUES.—For purposes of this sub- ber of total persons and affiliated groups as 4. Those persons or affiliated groups with the section, the revenues of a joint venture shall possible, with— highest revenues among those remaining will be included on a pro rata basis reflecting rel- (A) those persons or affiliated groups with be included in Subtier 2 and the rest in ative joint ownership to calculate the reve- the highest revenues included in Subtier 1; Subtier 3. nues of the parents of that joint venture. The

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00180 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1315 joint venture shall not be responsible for a for Occupational Safety and Health, identify (C) 6 times the amount of total penalties contribution amount under this subsection. all employers that, during the previous year, for any violations thereafter. (B) LIABILITY.—For purposes of this sub- were subject to final orders finding that they On page 376, line 5, strike all through the section, the liability under the Act of April violated standards issued by the Occupa- matter between lines 5 and 6 on page 386. 22, 1908 (45 U.S.C. 51 et seq.), commonly tional Safety and Health Administration for On page 386, line 6, strike all through page control of occupational exposure to asbestos known as the Employers’ Liability Act, shall 393, line 7. be attributed to the parent owners of the (29 C.F.R. 1910.1001, 1915.1001, and 1926.1101) or joint venture on a pro rata basis, reflecting the equivalent asbestos standards issued by their relative share of ownership. The joint any State under section 18 of the Occupa- SA 2875. Mr. INHOFE submitted an venture shall not be responsible for a pay- tional Safety and Health Act (29 U.S.C. 668). amendment intended to be proposed to ment amount under this provision. (3) ASSESSMENT FOR CONTRIBUTION.—The amendment SA 2746 proposed by Mr. Administrator shall assess each such identi- FRIST (for Mr. SPECTER (for himself and SA 2871. Mr. LAUTENBERG sub- fied employer or other individual under para- Mr. LEAHY)) to the bill S. 852, to create mitted an amendment intended to be graph (2) for a contribution to the Fund for a fair and efficient system to resolve proposed to amendment SA 2746 pro- that year in an amount equal to— claims of victims for bodily injury posed by Mr. FRIST (for Mr. SPECTER (A) 2 times the amount of total penalties caused by asbestos exposure, and for (for himself and Mr. LEAHY)) to the bill assessed for the first violation of occupa- other purposes; which was ordered to S. 852, to create a fair and efficient sys- tional health statutes, standards, or regula- tions; lie on the table; as follows: tem to resolve claims of victims for (B) 4 times the amount of total penalties On page 376, line 4, strike all through page bodily injury caused by asbestos expo- for a second violation of such statutes, 393, line 7. sure, and for other purposes; which was standards, or regulations; and ordered to lie on the table; as follows: (C) 6 times the amount of total penalties On page 370, lines 14 through 16, strike for any violations thereafter. ‘‘and the regulations banning asbestos pro- mulgated under section 501 of this Act),’’. Strike from line 6 on page 321 to line 13 on SA 2873. Mr. INHOFE submitted an page 322, and insert in lieu thereof the fol- amendment intended to be proposed to lowing: SA 2876. Mr. INHOFE submitted an (1) IN GENERAL.—Except as provided under amendment SA 2746 proposed by Mr. amendment intended to be proposed to RIST (for Mr. SPECTER (for himself and paragraph (2) and section 106(f) of this Act F amendment SA 2746 proposed by Mr. and section 524(j)(3) of title 11, United States Mr. LEAHY)) to the bill S. 852, to create FRIST (for Mr. SPECTER (for himself and Code, as amended by this Act, the remedies a fair and efficient system to resolve Mr. LEAHY)) to the bill S. 852, to create provided under this Act shall be the exclu- claims of victims for bodily injury a fair and efficient system to resolve sive remedy for any asbestos claim, includ- caused by asbestos exposure, and for ing any claim described in subsection (e)(2), other purposes; which was ordered to claims of victims for bodily injury under any Federal or State law. lie on the table; as follows: caused by asbestos exposure, and for (2) CIVIL ACTIONS AT TRIAL.— On page 376, line 5, strike all through the other purposes; which was ordered to (A) This Act shall not be the exclusive lie on the table; as follows: remedy for claims in which a defendant is a matter between lines 5 and 6 on page 386. company or any domestic or foreign sub- On page 370, lines 14 through 16, strike On page 386, line 6, strike all through page ‘‘and the regulations banning asbestos pro- sidiary of that company that does business 393, line 7. mulgated under section 501 of this Act),’’. with the Islamic Republic of Iran. (B) IN GENERAL.—This Act shall not apply SA 2874. Mr. INHOFE submitted an SA 2877. Mrs. CLINTON (for herself, to any asbestos claim that— amendment intended to be proposed to i. Is a civil action filed in a Federal or Mr. KERRY, Mr. LAUTENBERG, and Mr. State court (not including a filing in a bank- amendment SA 2746 proposed by Mr. MENENDEZ) submitted an amendment ruptcy court); FRIST (for Mr. SPECTER (for himself and intended to be proposed to amendment ii. Is not part of a consolidation of actions Mr. LEAHY)) to the bill S. 852, to create SA 2746 proposed by Mr. FRIST (for Mr. or a class action; and a fair and efficient system to resolve SPECTER (for himself and Mr. LEAHY)) iii. On the date of enactment of this Act— claims of victims for bodily injury I. In the case of a civil action which in- to the bill S. 852, to create a fair and caused by asbestos exposure, and for efficient system to resolve claims of cludes a jury trial, is before the jury after its other purposes; which was ordered to impaneling and commencement of presen- victims for bodily injury caused by as- lie on the table; as follows: tation of evidence, but before its delibera- bestos exposure, and for other pur- tions; On page 370, lines 14 through 16, strike ‘‘and the regulations banning asbestos pro- poses; which was ordered to lie on the II. In the case of a civil action which in- table; as follows: cludes a trial in which a judge is the trier of mulgated under section 501 of this Act),’’. fact, is at the presentation of evidence at On page 369, line 3, strike all through page On page 392, after line 5, add the following: trial; or 371, line 5 and insert the following: (1) IN GENERAL.—The Administrator shall SEC. 503. ASBESTOS EXPOSURE AS THE RESULT III. a verdict, final order, or final judgment OF A NATURAL OR OTHER DISASTER. has been entered by a trial court. assess employers or other individuals deter- (C) NONAPPLICABILITY.—This Act shall not mined to have violated asbestos statutes, (a) MEDICAL CLAIMS.— apply to a civil action described under sub- standards, or regulations administered by (1) IN GENERAL.—A claimant may file an paragraph (B) throughout the final disposi- the Department of Labor and State agencies exceptional medical claim with the Fund tion of the action. that are counterparts, for contributions to under section 121 if — the Asbestos Injury Claims Resolution Fund. (A) such claimant has been exposed to as- SA 2872. Mr. INHOFE submitted an (2) IDENTIFICATION OF VIOLATORS.—Each bestos from any area that is subject to a dec- amendment intended to be proposed to year, the Administrator shall in consulta- laration by the President of a major disaster, amendment SA 2746 proposed by Mr. tion with the Assistant Secretary of Labor as defined under section 102 of the Robert T. FRIST (for Mr. SPECTER (for himself and for Occupational Safety and Health, identify Stafford Disaster Relief and Emergency As- all employers that, during the previous year, sistance Act (42 U.S.C. 5122), as the result Mr. LEAHY)) to the bill S. 852, to create were subject to final orders finding that they of— a fair and efficient system to resolve violated standards issued by the Occupa- (i) a natural or other disaster, occurring claims of victims for bodily injury tional Safety and Health Administration for before, on, or after the date of enactment of caused by asbestos exposure, and for control of occupational exposure to asbestos this Act, including— other purposes; which was ordered to (29 C.F.R. 1910.1001, 1915.1001, and 1926.1101) or (I) the attack on the World Trade Center in lie on the table; as follows: the equivalent asbestos standards issued by New York, New York on September 11, 2001; On page 369, line 3, strike all through page any State under section 18 of the Occupa- and 371, line 5 and insert the following: tional Safety and Health Act (29 U.S.C. 668). (II) Hurricane Katrina of 2005 in the Gulf (e) CONTRIBUTIONS TO THE ASBESTOS TRUST (3) ASSESSMENT FOR CONTRIBUTION.—The Region of the United States; or FUND BY OSHA ASBESTOS VIOLATORS.— Administrator shall assess each such identi- (ii) the clean up and remediation following (1) IN GENERAL.—The Administrator shall fied employer or other individual under para- a disaster described in clause (i); or assess employers or other individuals deter- graph (2) for a contribution to the Fund for (B) as a result of living with a person who mined to have violated asbestos statutes, that year in an amount equal to— has met the exposure requirements described standards, or regulations administered by (A) 2 times the amount of total penalties in subparagraph (A). the Department of Labor and State agencies assessed for the first violation of occupa- (2) PHYSICIAN PANEL.—In reviewing medical that are counterparts, for contributions to tional health statutes, standards, or regula- evidence submitted by a claimant under the Asbestos Injury Claims Resolution Fund. tions; paragraph (1), the Physicians Panel shall (2) IDENTIFICATION OF VIOLATORS.—Each (B) 4 times the amount of total penalties take into consideration the unique nature of year, the Administrator shall in consulta- for a second violation of such statutes, such disasters and the potential for asbestos tion with the Assistant Secretary of Labor standards, or regulations; and exposure resulting from such disasters.

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00181 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1316 CONGRESSIONAL RECORD — SENATE February 14, 2006 (b) PRESERVATION OF ACTIONS.—Nothing in SA 2879. Mr. REID (for Mr. BIDEN) poses; which was ordered to lie on the this Act shall be construed to limit or abro- submitted an amendment intended to table; as follows: gate any pending or future civil action be proposed to amendment SA 2746 pro- On page 155, line 17, strike all through page against the United States Government or posed by Mr. FRIST (for Mr. SPECTER 115, line 8, and insert the following: any State or local government, or any agen- (A) IN GENERAL.—For purposes of this sec- cy or subdivision thereof, or any former or (for himself and Mr. LEAHY)) to the bill tion, revenues shall be determined in accord- present officer or employee thereof, in either S. 852, to create a fair and efficient sys- ance with generally accepted accounting their official or individual capacities, seek- tem to resolve claims of victims for principles, consistently applied, using the ing redress for exposure to asbestos— bodily injury caused by asbestos expo- amount reported as revenues in the annual (1) from any area that is subject to a dec- sure, and for other purposes; which was report filed with the Securities and Ex- laration by the President of a major disaster, ordered to lie on the table; as follows: change Commission in accordance with the as defined under section 102 of the Robert T. On page 359, strike line 3 and all that fol- Securities Exchange Act of 1934 (15 U.S.C. 78a Stafford Disaster Relief and Emergency As- lows through page 361, line 23, and insert the et seq.) for the most recent fiscal year end- sistance Act (42 U.S.C. 5122), as the result following: ing on or before December 31, 2002. If the de- of— (6) ASBESTOS TRUSTS AND CLASS ACTION fendant participant or affiliated group does (A) a natural or other disaster, occurring TRUSTS.—On and after the date of termi- not file reports with the Securities and Ex- before, on, or after the date of enactment of nation under this subsection, the trust dis- change Commission, revenues shall be the this Act, including— tribution program of any asbestos trust and amount previously reported as revenues or (i) the attack on the World Trade Center in the class action trust shall be replaced with that would have been reported as revenues, New York, New York on September 11, 2001; the medical criteria requirements of section and determined in accordance with generally and 121. accepted accounting principles, for the most (ii) Hurricane Katrina of 2005 in the Gulf (7) PAYMENT TO ASBESTOS TRUSTS AND recent fiscal year ending on or before Decem- Region of the United States; or CLASS ACTION TRUSTS.—The amounts deter- ber 31, 2002. (B) the clean up and remediation following mined under paragraph (1)(B) for payment to a disaster described in subparagraph (A); or the asbestos trusts and the class action trust SA 2881. Mr. BURNS (for himself and (2) as a result of living with a person who shall be transferred to the respective asbes- has met the exposure requirements described Mr. BAUCUS) submitted an amendment tos trusts of the debtor and the class action intended to be proposed to amendment in paragraph (1). trust within 90 days. (c) NATURAL OR OTHER DISASTER FUNDS.— (h) NATURE OF CLAIM AFTER SUNSET.— SA 2746 proposed by Mr. FRIST (for Mr. (1) IN GENERAL.—Nothing in this Act shall (1) IN GENERAL.— SPECTER (for himself and Mr. LEAHY)) be construed to limit or abrogate any exist- (A) RELIEF.— to the bill S. 852, to create a fair and ing fund, or preclude the formation of any (i) IN GENERAL.—Except as provided in sub- efficient system to resolve claims of future fund, for the payment of eligible med- paragraphs (B) and (C), on and after the date victims for bodily injury caused by as- ical expenses relating to treating asbestos- of termination under subsection (g), any in- bestos exposure, and for other pur- related disease for individuals exposed to as- dividual with an asbestos claim who has not poses; which was ordered to lie on the bestos— previously had a claim resolved by the Fund, (A) from any area that is subject to a dec- may in a civil action obtain relief in dam- table; as follows: laration by the President of a major disaster, ages subject to the terms and conditions On page 70, line 9, strike ‘‘TLC or FVC’’ as defined under section 102 of the Robert T. under this subsection and paragraph (6) of and insert ‘‘TLC, FVC, or DLCO’’. Stafford Disaster Relief and Emergency As- subsection (g). sistance Act (42 U.S.C. 5122), as the result (ii) RULE OF CONSTRUCTION.—This subpara- SA 2882. Mr. SPECTER (for himself, of— graph shall not be construed as creating a Mr. LIEBERMAN, and Mr. DODD) sub- (i) a natural or other disaster, occurring new Federal cause of action. mitted an amendment intended to be before, on, or after the date of enactment of (B) RESOLVED CLAIMS.—An individual who proposed to amendment SA 2746 pro- this Act, including— has had a claim resolved by the Fund may posed by Mr. FRIST (for Mr. SPECTER (I) the attack on the World Trade Center in not pursue a court action, except that an in- (for himself and Mr. LEAHY)) to the bill New York, New York on September 11, 2001; dividual who received an award for a non- and malignant disease (Levels I through V) from S. 852, to create a fair and efficient sys- (II) Hurricane Katrina of 2005 in the Gulf the Fund may assert a claim for a subse- tem to resolve claims of victims for Region of the United States; or quent or progressive disease under this sub- bodily injury caused by asbestos expo- (ii) the clean up and remediation following section, unless the disease was diagnosed or sure, and for other purposes; which was a disaster described in clause (i); or the claimant had discovered facts that would ordered to lie on the table; as follows: (B) as a result of living with a person who have led a reasonable person to obtain such On page 329, line 4 , insert ‘‘, including a has met the exposure requirements described a diagnosis before the date on which the pre- claim described under paragraph (2),’’ after in subparagraph (A). vious claim against the Fund was disposed. ‘‘claim’’. (2) COLLATERAL SOURCE COMPENSATION EX- (C) MESOTHELIOMA CLAIM.—An individual CEPTION.—The payment of any medical ex- who received an award for a nonmalignant or SA 2883. Mr. SPECTER (for himself, pense under paragraph (1) shall not be collat- malignant disease (except mesothelioma) eral source compensation as defined under (Levels I through VIII) from the Fund may Mr. LIEBERMAN, and Mr. DODD) sub- section 134(a). assert a claim for mesothelioma under this mitted an amendment intended to be (d) DEFINITION OF PERSON.—The term per- subsection, unless the mesothelioma was di- proposed to amendment SA 2746 pro- son as defined in section 3(13) shall not in- agnosed or the claimant had discovered facts posed by Mr. FRIST (for Mr. SPECTER clude the captive insurance company estab- that would have led a reasonable person to (for himself and Mr. LEAHY)) to the bill lished and funded under title III of division K obtain such a diagnosis before the date on S. 852, to create a fair and efficient sys- of the Consolidated Appropriations Resolu- which the nonmalignant or other malignant tem to resolve claims of victims for tion, 2003 (Public Law 108–7; 117 Stat. 517). claim was disposed. bodily injury caused by asbestos expo- (D) STATUTE OF LIMITATIONS.—Notwith- standing any other provision of law, a claim- sure, and for other purposes; which was SA 2878. Mrs. CLINTON (for herself, ordered to lie on the table; as follows: Mr. KERRY, Mr. LAUTENBERG, and Mr. ant who, on the date of termination under subsection (g), had a claim filed with the On page 212, line 21, strike all through page MENENDEZ) submitted an amendment Fund that was unresolved or was eligible to 214, line 22, and insert the following: intended to be proposed to amendment file a claim with the Fund under section (B) PROCEDURES FOR DETERMINING INSURER SA 2746 proposed by Mr. FRIST (for Mr. 113(b) may file a civil action in accordance PAYMENTS.— SPECTER (for himself and Mr. LEAHY)) with this section not less than 2 years after (i) AMOUNT OF PAYMENTS.—The Commis- to the bill S. 852, to create a fair and the date of termination under subsection (g). sion shall determine the amount that each efficient system to resolve claims of insurer participant shall be required to pay victims for bodily injury caused by as- SA 2880. Mr. MARTINEZ (for himself, into the Fund under the procedures described bestos exposure, and for other pur- Mr. ALLEN, Mr. ROBERTS, and Mr. in this section. The Commission shall make poses; which was ordered to lie on the BURR) submitted an amendment in- this determination by first promulgating a rule establishing a methodology for alloca- table; as follows: tended to be proposed to amendment SA 2746 proposed by Mr. FRIST (for Mr. tion of payments among insurer participants On page 17, line 21, before the period at the and then applying such methodology to de- SPECTER (for himself and Mr. LEAHY)) end, insert the following: ‘‘, or the captive termine the individual payment for each in- insurance company established and funded to the bill S. 852, to create a fair and surer participant. The methodology shall be under title III of division K of the Consoli- efficient system to resolve claims of uniform for all insurer participants. dated Appropriations Resolution, 2003 (Pub- victims for bodily injury caused by as- (ii) RESERVE STUDY REQUIRED.—The Com- lic Law 108–7; 117 Stat. 517)’’. bestos exposure, and for other pur- mission shall conduct a reserve study (the

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‘‘Reserve Study’’) to determine the appro- (3) CLAIMS FOR ADDITIONAL AWARDS.— the date of consummation of the transaction priate reserve allocation of each insurer par- (A) NONMALIGNANT DISEASES.—If a claim- or the first transaction to occur in a pro- ticipant and may request information from ant has previously filed a timely initial posed series of transactions. each insurer participant, defendant partici- claim for compensation for any nonmalig- (B) OTHER NOTIFICATIONS.— pant, the Securities and Exchange Commis- nant disease level, there shall be no limita- (i) IN GENERAL.—Not later than the date in sion or any State regulatory agency for the tions period applicable to the filing of claims any year by which a participant is required purpose of conducting the Reserve Study. by the claimant for additional awards for to make its contribution to the Fund, the The Reserve Study shall calculate each in- higher disease levels based on the progres- participant shall deliver to the Adminis- surer’s exposure to current and future asbes- sion of the nonmalignant disease. trator a written certification stating that— tos claims in the asbestos litigation environ- (B) MALIGNANT DISEASES.—Regardless of (I) the participant has complied during the ment as it existed prior to enactment. Such whether the claimant has previously filed a period since the last such certification or the calculation shall be derived from the fol- claim for compensation for any other disease date of enactment of this Act with the notice lowing elements: level, a claim for compensation for a malig- requirements set forth in this subsection; or (I) an estimation of each and every defend- nant disease level shall be filed within 5 (II) the participant was not required to ant participant’s current and future expo- years after the claimant first obtained a provide any notice under this subsection dur- sure to expense and loss costs in the asbestos medical diagnosis and medical test results ing such period. litigation environment as it existed prior to sufficient to satisfy the criteria for the ma- (ii) SUMMARY.—The Administrator shall in- enactment (‘‘Ultimate Expense and Loss’’); lignant disease level for which the claimant clude in the annual report required to be (II) applying a uniform set of assumptions is seeking compensation. submitted to Congress under section 405 a regarding the application of insurance and (4) EFFECT ON PENDING CLAIMS.— summary of all such notices (after removing reinsurance to Ultimate Expense and Loss, (A) IN GENERAL.—Subject to subparagraph all confidential identifying information) re- an analysis of each insurer participant’s un- (C), if an asbestos claim that was timely ceived during the most recent fiscal year. resolved or unexhausted insurance or rein- filed within ten years prior to the date of en- (C) NOTICE COMPLETION.—The Adminis- surance coverage applicable to such Ulti- actment is pending as of the date of enact- trator shall not consider any notice given mate Expense and Loss for each defendant ment and is preempted under section 403(e), under paragraph (1) as given until such time participant; a claim under this Act for the same disease as the Administrator receives substantially (III) a project of each insurer’s exposure to or condition may be filed with the Office all the information required by this sub- claims by entities that had not yet become under this section within 5 years after such section. defendants as of the date of enactment, but date of enactment. (3) CONTENTS OF NOTICE.— N GENERAL might reasonably have been anticipated to (B) SPECIAL RULE.—For purposes of this (A) I .—The Administrator shall become defendants in the future if the asbes- paragraph, a claim shall not be treated as determine by rule or regulation the informa- tos litigation environment as it existed prior pending with a trust established under title tion to be included in the notice required to enactment had continued. Not later than 11, United States. under this subsection, which shall include 60 days after the initial meeting of the Com- such information as may be necessary to en- mission, the Commission shall commence a SA 2885. Mr. SPECTER submitted an able the Administrator to determine wheth- rulemaking proceeding under section 213(a) amendment intended to be proposed to er— to propose and adopt a methodology for con- (i) the person or persons to whom the as- ducting the Reserve Study and allocating amendment SA 2746 proposed by Mr. sets, properties or business were transferred payments among insurer participants on the FRIST (for Mr. SPECTER (for himself and in the transaction (or series of transactions) basis of the Reserve Study. Such method- Mr. LEAHY)) to the bill S. 852, to create should be considered to be the successor in ology shall be consistent with the provisions a fair and efficient system to resolve interest of the participant for purposes of of this paragraph. claims of victims for bodily injury this Act; or (iii) PERMITTED EXTRAPOLATION OF ULTI- caused by asbestos exposure, and for (ii) the transaction (or series of trans- MATE EXPENSE AND LOSS FOR PERIPHERAL DE- other purposes; which was ordered to actions) is subject to avoidance by a trustee under section 544(b) or 548 of title 11, United FENDANT PARTICIPANTS.—The Commission lie on the table; as follows: shall be given the discretion to establish an States Code, as if, but whether or not, the appropriate methodology to extrapolate Ul- On page 306, line 20, strike all after the pe- participant is subject to a case under title 11, timate Expense and Loss for Tier VI defend- riod through page 307, line 10, and insert ‘‘In United States Code. ant participants for the purposes of the Re- the event that collateral source compensa- (B) STATEMENTS.—The notice shall also in- serve Study. Considerations for such meth- tion exceeds the amount that the claimant clude— odology shall include, but not be limited to, would be paid (excluding any adjustments (i) a statement by the participant as to the nature of that Tier VI defendant partici- under section 131(b) (3) and (4) of the Act) for whether it believes any person has become a pant’s asbestos liability, the number of pend- such condition under the Act most similar to successor in interest to the participant for ing and historic asbestos claims against the the claimant’s claim with the trust, such purposes of this Act and, if so, the identity Tier VI defendant participant and the juris- trust shall not make any payment to the of that person; and dictions in which such Tier VI defendant par- claimant.’’. (ii) a statement by the participant as to ticipant had been sued for asbestos liability. whether that person has acknowledged that Mr. SPECTER submitted an (iv) RULE OF CONSTRUCTION.—Nothing in SA 2886. it has become a successor in interest for pur- this subparagraph shall undermine the ini- amendment intended to be proposed to poses of this Act. tial payment requirement in section amendment SA 2746 proposed by Mr. (4) DEFINITION.—In this subsection, the 212(e)(1). FRIST (for Mr. SPECTER (for himself and term ‘‘significant portion of the assets, prop- Mr. LEAHY)) to the bill S. 852, to create erties or business of a participant’’ means as- SA 2884. Mr. SPECTER submitted an a fair and efficient system to resolve sets (including, without limitation, tangible amendment intended to be proposed to claims of victims for bodily injury or intangible assets, securities and cash), properties or business of such participant (or amendment SA 2746 proposed by Mr. caused by asbestos exposure, and for FRIST (for Mr. SPECTER (for himself and its affiliated group, to the extent that the other purposes; which was ordered to participant has elected to be part of an affili- Mr. LEAHY)) to the bill S. 852, to create lie on the table; as follows: ated group under section 204(f)) that, to- a fair and efficient system to resolve On page 262, line 20, strike all through page gether with any other asset, property or claims of victims for bodily injury 270, line 20, and insert the following: business transferred by such participant in caused by asbestos exposure, and for (j) TRANSACTIONS.— any of the previous completed 5 fiscal years other purposes; which was ordered to (1) NOTICE OF TRANSACTION.—Any partici- of such participant (or, as appropriate, its af- lie on the table; as follows: pant that has engaged in any transaction or filiated group), and as determined in accord- On page 70, line 23, strike all through page series of transactions under which a signifi- ance with United States’ generally accepted 73, line 2, and insert the following: cant portion of such participant’s assets, accounting principles as in effect from time (b) STATUTE OF LIMITATIONS.— properties or business was, directly or indi- to time— (1) IN GENERAL.—If a claim is not filed with rectly, transferred by any means (including, (A) generated at least 40 percent of the rev- the Office within the limitations period spec- without limitation, by sale, dividend, con- enues of such participant (or its affiliated ified in this subsection for that category of tribution to a subsidiary or split-off) to 1 or group); claim, such claim shall be extinguished, and more persons other than the participant (B) constituted at least 40 percent of the any recovery thereon shall be prohibited. shall provide written notice to the Adminis- assets of such participant (or its affiliated (2) INITIAL CLAIMS.—An initial claim for an trator of such transaction (or series of trans- group); award under this Act shall be filed within 5 actions). (C) generated at least 40 percent of the op- years after the date on which the claimant (2) TIMING OF NOTICE AND RELATED AC- erating cash flows of such participant (or its first received a medical diagnosis and med- TIONS.— affiliated group); or ical test results sufficient to satisfy the cri- (A) IN GENERAL.—Any notice that a partici- (D) generated at least 40 percent of the net teria for the disease level for which the pant is required to give under paragraph (1) income or loss of such participant (or its af- claimant is seeking compensation. shall be given not later than 30 days after filiated group),

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00183 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1318 CONGRESSIONAL RECORD — SENATE February 14, 2006 as measured during any of such 5 previous waiving the right to secure compensation all confidential identifying information) re- fiscal years. under section 106(f)(2) of the Fairness in As- ceived during the most recent fiscal year. (5) RIGHT OF ACTION.— bestos Injury Resolution Act of 2006, unless (3) NOTICE COMPLETION.—The Adminis- (A) IN GENERAL.—Notwithstanding section the claimant is permitted under section trator shall not consider any notice given 221(f), if the Administrator or any partici- 106(f)(2)(B) of such Act to seek a judgment or under subsection (a) as given until such time pant believes that a participant has engaged, order for monetary damages from a Federal as the Administrator receives substantially directly or indirectly, in, or is the subject of, or State court; all the information required by this section. a transaction (or series of transactions)— ‘‘(bb) meets the requirements for com- (c) CONTENTS OF NOTICE.— (i) involving a person or persons who, as a pensation under the distribution plan for the (1) IN GENERAL.—The Administrator shall result of such transaction (or series of trans- trust as of the date of enactment of the Fair- determine by regulation the information to actions), may have or may become the suc- ness in Asbestos Injury Resolution Act of be included in the notice required under this cessor in interest or successors in interest of 2006; section, which shall include such informa- such participant, where the status as a suc- ‘‘(cc) for any condition satisfies the med- tion as may be necessary to enable the Ad- cessor in interest has not been stated and ac- ical criteria under the distribution plan for ministrator to determine whether— knowledged by the participant and such per- the trust that is most nearly equivalent to (A) the person or persons to whom the as- son; or the medical criteria described in paragraph sets, properties or business were transferred (ii) that may be subject to avoidance by a (2), (3), (4), (5), (7), (8), or (9) of section 121(d) in the transaction (or series of transactions) trustee under section 544(b) or 548 of title 11, of the Fairness in Asbestos Injury Resolu- should be considered to be the successor in United States Code, as if, but whether or not, tion Act of 2006, except that, notwith- interest of the participant for purposes of the participant is a subject to a case under standing any provision of the distribution this Act; or title 11, United States Code, plan of the trust to the contrary, the trust (B) the transaction (or series of trans- then the Administrator or such participant shall not accept the results of a DLCO test actions) is subject to avoidance by a trustee may, as a deemed creditor under applicable (as such test is defined in section 121(a) of under section 544(b) or 548 of title 11, United law, bring a civil action in an appropriate the Fairness in Asbestos Injury Resolution States Code, as if, but whether or not, the forum against the participant or any other Act of 2006) for the purpose of demonstrating participant is subject to a case under title 11, person who is either a party to the trans- respiratory impairment; and United States Code. action (or series of transactions) or the re- ‘‘(dd) for any of the cancers listed in sec- (2) STATEMENTS.—The notice shall also in- cipient of any asset, property or business of tion 121(d)(6) of the Fairness in Asbestos In- clude— the participant. jury Resolution Act of 2006 does not seek, (A) a statement by the participant as to (B) RELIEF ALLOWED.—In any action com- and the trust does not pay, any compensa- whether the participant believes any person menced under this subsection, the Adminis- tion until such time as the Institute of Medi- has become a successor in interest to the trator or a participant, as applicable, may cine finds that there is a causal relationship participant for purposes of this Act and, if seek— between asbestos exposure and such cancer, so, the identity of that person; and (i) with respect to a transaction (or series in which case such claims may be paid if (B) a statement by the participant as to of transactions) referenced in clause (i) of such claims otherwise qualify for compensa- whether that person has acknowledged that subparagraph (A), a declaratory judgment re- tion under the distribution plan of the trust such person has become a successor in inter- garding whether such person has become the as of the date of enactment of the Fairness est for purposes of this Act. successor in interest of such participant; or in Asbestos Injury Resolution Act of 2006. (d) DEFINITION.—In this section, the term (ii) with respect to a transaction (or series ‘‘significant portion of the assets, properties of transactions) referenced in clause (ii) of SA 2888. Mr. ISAKSON submitted an or business of a participant’’ means assets subparagraph (A) a temporary restraining amendment intended to be proposed by (including tangible or intangible assets, se- order or a preliminary or permanent injunc- him to the bill S. 852, to create a fair curities, and cash), properties or business of tion such other relief regarding such trans- such participant (or its affiliated group, to action (or series of transactions) as the court and efficient system to resolve claims of victims for bodily injury caused by the extent that the participant has elected determines to be necessary to ensure that to be part of an affiliated group under sec- performance of a participant’s payment obli- asbestos exposure, and for other pur- tion 204(f)) that, together with any other gations under this Act is not materially im- poses; which was ordered to lie on the asset, property or business transferred by paired by reason of such transaction (or se- table; as follows: such participant in any of the previous com- ries of transactions). In lieu of the matter, insert the following: pleted 5 fiscal years of such participant (or, (C) APPLICABILITY.—If the Administrator SEC. 503. TRANSACTIONS. as appropriate, its affiliated group), and as or a participant wishes to challenge a state- determined in accordance with United States ment made by a participant that a person (a) NOTICE OF TRANSACTIONS.—Notwith- standing any other provision of this Act, any generally accepted accounting principles as has not become a successor in interest for in effect from time to time— purposes of this Act, then this paragraph participant that has engaged in any trans- action or a series of transactions under (1) generated at least 40 percent of the rev- shall be the exclusive means by which the enues of such participant (or its affiliated determination of whether such person be- which a significant portion of such partici- group); came a successor in interest of the partici- pant’s assets, properties, or business was, di- (2) constituted at least 40 percent of the as- pant shall be made. This paragraph shall not rectly or indirectly, transferred by any sets of such participant (or its affiliated preempt any other rights of any person means (including by sale, dividend, contribu- group); under applicable Federal or State law. tion to a subsidiary, or split-off) to 1 or more (3) generated at least 40 percent of the op- (D) VENUE.—Any action under this para- persons other than the participant shall pro- erating cash flows of such participant (or its graph shall be exclusively brought in any ap- vide written notice to the Administrator of affiliated group); or propriate United States district court or, to such transaction (or series of transactions). (4) generated at least 40 percent of the net the extent necessary to obtain complete re- (b) TIMING OF NOTICE AND RELATED AC- income or loss of such participant (or its af- lief, any other appropriate forum outside of TIONS.— the United States. (1) IN GENERAL.—Any notice that a partici- filiated group), (6) RULES AND REGULATIONS.—The Adminis- pant is required to give under subsection (a) as measured during any of such 5 previous trator may promulgate regulations to effec- shall be given not later than 30 days after fiscal years. tuate the intent of this subsection, including the date of consummation of the transaction (e) RIGHT OF ACTION.— regulations relating to the form, timing, and or the first transaction to occur in a pro- (1) IN GENERAL.—Notwithstanding section content of notices. posed series of transactions. 221(f), if the Administrator or any partici- (2) OTHER NOTIFICATIONS.— pant believes that a participant has engaged, SA 2887. Mr. SPECTER submitted an (A) IN GENERAL.—Not later than the date in directly or indirectly, in, or is the subject of, amendment intended to be proposed to any year on which a participant is required a transaction (or series of transactions) amendment SA 2746 proposed by Mr. to make its contribution to the Fund, the that— FRIST (for Mr. SPECTER (for himself and participant shall deliver to the Adminis- (A) involves a person or persons who, as a Mr. LEAHY)) to the bill S. 852, to create trator a written certification stating that— result of such transaction (or series of trans- a fair and efficient system to resolve (i) the participant has complied during the actions), may have or may become the suc- period since the last such certification or the cessor in interest or successors in interest of claims of victims for bodily injury date of enactment of this Act with the notice such participant, where the status as a suc- caused by asbestos exposure, and for requirements set forth in this section; or cessor in interest has not been stated and ac- other purposes; which was ordered to (ii) the participant was not required to pro- knowledged by the participant and such per- lie on the table; as follows: vide any notice under this section during son; or On page 302, strike line 9 and all that fol- such period. (B) may be subject to avoidance by a trust- lows through page 304, line 17, and insert the (B) SUMMARY.—The Administrator shall in- ee under section 544(b) or 548 of title 11, following: clude in the annual report required to be United States Code, as if, but whether or not, ‘‘(aa) provides to the trust a copy of a bind- submitted to Congress under section 405 a the participant is a subject to a case under ing election submitted to Administrator summary of all such notices (after removing title 11, United States Code,

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00184 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE February 14, 2006 CONGRESSIONAL RECORD — SENATE S1319 then the Administrator or such participant tion of the Dorothy Buell Memorial Urban Affairs be authorized to meet may, as a deemed creditor under applicable Visitor Center for use as a visitor cen- during the session of the Senate on law, bring a civil action in an appropriate ter for the Indiana Dunes National February 14, 2006, at 10 a.m., to conduct forum against the participant or any other Lakeshore, and for other purposes; S. a hearing on the nomination of Mr. person who is either a party to the trans- action (or series of transactions) or the re- 1970, a bill to amend the National Randall S. Kroszner, of New Jersey, to cipient of any asset, property or business of Trails System Act to update the feasi- be a member of the Board of Governors the participant. bility and suitability study originally of the Federal Reserve System; Mr. Ed- (2) RELIEF ALLOWED.—In any action com- prepared for the Trail of Tears Na- ward P. Lazear, of California, to be a menced under this section, the Adminis- tional Historic Trail and provide for member of the Council of Economic trator or a participant, as applicable, may the inclusion of new trail segments, Advisers; Mr. Kevin M. Warsh, of New seek— land components, and campgrounds as- York, to be a member of the Board of (A) with respect to a transaction (or series sociated with that trail, and for other Governors of the Federal Reserve Sys- of transactions) referred to under subpara- graph (A) of paragraph (1), a declaratory purposes; H.R. 562, a bill to authorize tem. judgment regarding whether such person has the Government of Ukraine to estab- The PRESIDING OFFICER. Without become the successor in interest of such par- lish a memorial on Federal land in the objection, it is so ordered. ticipant; or District of Columbia to honor the vic- COMMITTEE ON COMMERCE, SCIENCE, AND (B) with respect to a transaction (or series tims of the manmade famine that oc- TRANSPORTATION of transactions) referred to under subpara- curred in Ukraine in 1932–1933; H.R. 318, Mr. GRASSLEY. Mr. President, I ask graph (B) of paragraph (1)— a bill to authorize the Secretary of the unanimous consent that the Com- (i) a temporary restraining order or a pre- Interior to study the suitability and mittee on Commerce, Science, and liminary or permanent injunction; or Transportation be authorized to meet (ii) such other relief regarding such trans- feasibility of designating Castle action (or series of transactions) as the court Nugent Farms located on St. Croix, on Tuesday, February 14, 2006, at 10 determines to be necessary to ensure that Virgin Islands, as a unit of the Na- a.m., on State and local issues and mu- performance of a participant’s payment obli- tional Park System, and for other pur- nicipal networks. gations under this Act is not materially im- poses. The PRESIDING OFFICER. Without paired by reason of such transaction (or se- Because of the limited time available objection, it is so ordered. ries of transactions). for the hearing, witnesses may testify COMMITTEE ON ENERGY AND NATURAL (3) APPLICABILITY.—If the Administrator or by invitation only. However, those RESOURCES a participant wishes to challenge a state- wishing to submit written testimony Mr. GRASSLEY. Mr. President, I ask ment made by a participant that a person unanimous consent that the Com- has not become a successor in interest for for the hearing record should send two purposes of this Act, then this subsection copies of their testimony to the Com- mittee on Energy and Natural Re- shall be the exclusive means by which the mittee on Energy and Natural Re- sources be authorized to meet during determination of whether such person be- sources, United States Senate, SD–364 the session of the Senate on Tuesday, came a successor in interest of the partici- Dirksen Senate Office Building, Wash- February 14 at 10 a.m. The purpose of pant shall be made. This subsection shall not ington, DC 20510–6150. this hearings is to discuss the Energy preempt any other rights of any person For further information, please con- Information Administration’s 2006 an- under applicable Federal or State law. tact Tom, Lillie at (202) 224–5161 or nual energy outlook on trends and (4) VENUE.—Any action under this sub- issues affecting the United States En- section shall be exclusively brought in any David Szymanski at (202) 224–6293. appropriate United States district court or, COMMITTEE ON ENERGY AND NATURAL ergy Market. to the extent necessary to obtain complete RESOURCES The PRESIDING OFFICER. Without relief, any other appropriate forum outside Mr. DOMENICI. Mr. President, I objection, it is so ordered. of the United States. would like to announce for the infor- COMMITTEE ON FOREIGN RELATIONS (f) REGULATIONS.—The Administrator— mation of the Senate and the public Mr. GRASSLEY. Mr. President, I ask (1) shall promulgate rules to carry out sub- that a hearing has been rescheduled be- unanimous consent that the Com- section (c), including regulations relating to fore the Committee on Energy and Nat- mittee on Foreign Relations be author- the form, timing and content of notices; and ized to meet during the session of the (2) may promulgate regulations to effec- ural Resources. tuate the intent of this section. The hearing originally scheduled for Senate on Tuesday, February 14, 2006, (g) PREEMPTION OF SECTION 223(J).—Section Tuesday, February, 14, 2006 at 10 a.m. at 10 a.m. to hold a hearing on the 223(j) shall have no force or effect. in Room. SD–366 of the Dirksen Senate President’s budget for foreign affairs, f Office Building will now be held on and a business meeting. The PRESIDING OFFICER. Without NOTICES OF HEARINGS/MEETINGS Thursday, February 16, 2006 at 2:30 p.m. in the same room. objection, it is so ordered. SUBCOMMITTEE ON NATIONAL PARKS The purpose of the hearing is to dis- COMMITTEE ON HOMELAND SECURITY AND Mr. THOMAS. Mr. President, I would cuss the Energy Information Adminis- GOVERNMENTAL AFFAIRS like to announce for the information of tration’s 2006 Annual Energy Outlook Mr. GRASSLEY. Mr. President, I ask the Senate and the public that a hear- on trends and issues affecting the unanimous consent that the Com- ing has been rescheduled before the United States’ energy market. mittee on Homeland Security and Gov- Subcommittee on National Parks. Because of the limited time available ernmental Affairs be authorized to The hearing originally scheduled for for the hearing, witnesses may testify meet on Tuesday, February 14, 2006, at Thursday, February 16, 2006 at 2:30 p.m. by invitation only. However, those 10 a.m. for a hearing titled, ‘‘Hurricane in Room SD–366 of the Dirksen Senate wishing to submit written testimony Katrina: The Homeland Security De- Office Building will now be held at 1:30 for the hearing record should send two partment’s Preparation and Response. p.m. on February 16, 2006 in the same copies of their testimony to the Com- The PRESIDING OFFICER. Without room. mittee on Energy and Natural Re- objection, it is so ordered. The purpose of the hearing is to re- sources, United States Senate, Wash- COMMITTEE ON INDIAN AFFAIRS ceive testimony on the following bills: ington, DC 20510–6150. Mr. GRASSLEY. Mr. President, I ask S.J. Res. 28, a joint resolution approv- For further information, please con- unanimous consent that the Com- ing the location of the commemorative tact Lisa Epifani 202–224–5269 or Shan- mittee on Indian Affairs be authorized work in the District of Columbia hon- non Ewan at 202–224–7555. to meet on Tuesday, February 14, 2006, oring former President Dwight D. Ei- f at 2:30 p.m. in Room 485 of the Russell senhower; S. 1870, a bill to clarify the Senate Office Building to conduct an authorities for the use of certain Na- AUTHORITIES FOR COMMITTEES oversight hearing on the President’s tional Park Service properties within TO MEET Fiscal Year 2007 Budget Request for In- Golden Gate National Recreation Area COMMITTEE ON BANKING, HOUSING, AND URBAN dian Programs. Those wishing addi- and San Francisco Maritime National AFFAIRS tional information may contact the In- Historical Park, and for other pur- Mr. GRASSLEY. Mr. President, I ask dian Affairs Committee at 224–2251. poses; S. 1913, a bill to authorize the unanimous consent that the Com- The PRESIDING OFFICER. Without Secretary of the Interior to lease a por- mittee on Banking, Housing, and objection, it is so ordered.

VerDate Aug 31 2005 05:14 Dec 27, 2006 Jkt 059060 PO 00000 Frm 00185 Fmt 4624 Sfmt 0634 E:\RECORDCX\T37X$J0E\S14FE6.REC S14FE6 mmaher on PROD1PC69 with CONG-REC-ONLINE S1320 CONGRESSIONAL RECORD — SENATE February 14, 2006 COMMITTEE ON VETERANS’ AFFAIRS The PRESIDING OFFICER. Without ate completes its business today, it Mr. GRASSLEY. Mr. President, I ask objection, it is so ordered. The clerk stand in adjournment until 9:30 a.m. on unanimous consent that the Com- will report the concurrent resolution Wednesday, February 15; I further ask mittee on Veterans’ Affairs be author- by title. that following the prayer and pledge, ized to meet during the session of the The assistant legislative clerk read the morning hour be deemed expired, Senate on Tuesday, February 14, 2006, as follows: the Journal of proceedings be approved for a committee hearing on the Admin- A concurrent resolution (H. Con. Res. 315) to date, the time for the two leaders be istration’s proposed fiscal year 2007 De- urging the President to issue a proclamation reserved, and the Senate then begin a partment of Veterans Affairs budget. for the observance of an American Jewish period of morning business for up to 30 The hearing will take place in room 418 History Month. minutes with the first 15 minutes of the Russell Senate Office Building at There being no objection, the Senate under the control of the majority lead- 10 a.m. proceeded to consideration of the con- er or his designee and the second 15 The PRESIDING OFFICER. Without current resolution. minutes under the control of the objection, it is so ordered. Mr. FRIST. I ask unanimous consent Democratic leader or his designee; pro- SUBCOMMITTEE ON READINESS AND that the concurrent resolution be vided that following morning business, MANAGEMENT SUPPORT agreed to and the motion to reconsider the Senate resume the motion to pro- Mr. GRASSLEY. Mr. President, I ask be laid on the table. ceed to S. 2271. unanimous consent that the Sub- The PRESIDING OFFICER. Without The PRESIDING OFFICER. Without committee on Readiness and Manage- objection, it is so ordered. objection, it is so ordered. ment Support be authorized to meet The concurrent resolution (H. Con. during the session of the Senate on Res. 315) was agreed to. f f February 14, 2006, at 2:30 p.m., in open PROGRAM session to receive testimony on im- CARIBBEAN-AMERICAN HERITAGE Mr. FRIST. Mr. President, tomorrow, proving contractor incentives in review MONTH of the defense authorization request for following morning business, the Senate Mr. FRIST. Mr. President, I ask fiscal year 2007. will resume debate on the motion to unanimous consent that the Judiciary The PRESIDING OFFICER. Without proceed to the PATRIOT Act Amend- Committee be discharged from further objection, it is so ordered. ments Act. I filed cloture on that mo- consideration of H. Con. Res. 71 and tion, and we will announce when that SUBCOMMITTEE ON RETIREMENT SECURITY AND that the Senate then proceed to its im- AGING vote will occur. mediate consideration. Mr. GRASSLEY. Mr. President, I ask The PRESIDING OFFICER. Without f unanimous consent that the Sub- objection, it is so ordered. The clerk committee on Retirement Security and will report the concurrent resolution ADJOURNMENT UNTIL 9:30 A.M. Aging, be authorized to hold a hearing by title. TOMORROW during the session of the Senate on The assistant legislative clerk read Mr. FRIST. Mr. President, if there is Tuesday, February 14th at 2:30 a.m. in as follows: no further business to come before the SD–430. A concurrent resolution (H. Con. Res. 71) Senate, I ask unanimous consent that The PRESIDING OFFICER. Without expressing the sense of Congress that there the Senate stand in adjournment under objection, it is so ordered. should be established a Caribbean-American the previous order. SUBCOMMITTEE ON TRADE, TOURISM, AND Heritage Month. There being no objection, the Senate, ECONOMIC DEVELOPMENT There being no objection, the Senate at 7:19 p.m., adjourned until Wednes- Mr. GRASSLEY. Mr. President. I ask proceeded to consideration of the con- day, February 15, 2006, at 9:30 a.m. unanimous consent that the Sub- current resolution. committee on Trade, Tourism, and Mr. FRIST. I ask unanimous consent f Economic Development be authorized the concurrent resolution be agreed to, to meet on Tuesday, February 14, 2006, the preamble be agreed to, the motion NOMINATIONS at 2:30 p.m., on Canadian softwood lum- to reconsider be laid on the table, and Executive nominations received by ber. any statements be printed in the the Senate February 14, 2006: The PRESIDING OFFICER. Without RECORD, with no intervening action. FEDERAL DEPOSIT INSURANCE CORPORATION objection, it is so ordered. The PRESIDING OFFICER. Without JON T. RYMER, OF TENNESSEE, TO BE INSPECTOR GEN- f objection, it is so ordered. ERAL, FEDERAL DEPOSIT INSURANCE CORPORATION, The concurrent resolution (H. Con. VICE GASTON L. GIANNI, JR. AMERICAN JEWISH HISTORY Res. 71), was agreed to. THE JUDICIARY MONTH The preamble was agreed to. JEROME A. HOLMES, OF OKLAHOMA, TO BE UNITED Mr. FRIST. Mr. President, I ask STATE DISTRICT JUDGE FOR THE NORTHERN DISTRICT f OF OKLAHOMA, VICE SVEN E. HOLMES, RESIGNED. unanimous consent the Judiciary Com- MILAN D. SMITH, JR., OF CALIFORNIA, TO BE UNITED mittee be discharged from further con- ORDERS FOR WEDNESDAY, STATES CIRCUIT JUDGE FOR THE NINTH CIRCUIT, VICE A. WALLACE TASHIMA, RETIRED. sideration of H. Con. Res. 315 and the FEBRUARY 15, 2006 FRANK D. WHITNEY, OF NORTH CAROLINA, TO BE Senate now proceed to its immediate Mr. FRIST. Mr. President, I ask UNITED STATES DISTRICT JUDGE FOR THE WESTERN DISTRICT OF NORTH CAROLINA, VICE H. BRENT consideration. unanimous consent that when the Sen- MCKNIGHT, DECEASED.

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HONORING CHARLES C. COOK, SR. and is currently an adjunct faculty member at J. Jasen entered into his eternal rest on Feb- ON HIS RETIREMENT FROM THE Cleveland State University. ruary 4, 2006, at the age of 90. GOVERNMENT PRINTING OFFICE Her life long professional focus on improving Without seeking to be repetitive, Mr. Speak- the state of struggling urban school districts is er, the fact remains that Judge Jasen was HON. VERNON J. EHLERS evidenced throughout her profession. Her ca- widely regarded as one of the sharpest legal minds of his era. Taking his seat on the Court OF MICHIGAN reer in education began in her hometown of New York City, where she taught at the ele- of Appeals back in the days when that bench IN THE HOUSE OF REPRESENTATIVES mentary and high school levels. She later was still elected by popular vote statewide, Tuesday, February 14, 2006 served as a school principal and District Ad- Judge Jasen was the last western New Yorker Mr. EHLERS. Mr. Speaker, I rise to honor ministrator and served twice as Super- to serve on the court, and his decisions were Charles C. Cook, Sr., for his 36 years of ex- intendent of two of the lowest performing widely regarded as fair and impeccably re- emplary service at the U.S. Government Print- school districts in New York City, Chancellor’s searched. Rising to the position of senior as- ing Office, GPO. District and Crown Heights District in Brooklyn. sociate judge before his mandated retirement Charlie came to the GPO in November 1969 Her leadership is credited with dramatically im- in 1985, Judge Jasen was well known as a and was assigned as a Compositor in the proving academic achievement in both of lawyer’s judge—someone who knew the law, Monotype Section. In 1978, he was promoted those districts. who understood both its limits and its full po- to the position of Printing Specialist in the Ms. Bennett’s tenure in Cleveland parallels tential. Composing Division, Office of Superintendent. that of her work in New York. Chosen as Su- Following his retirement, Judge Jasen’s ca- In June 1979, Charlie was reassigned to the perintendent of the Cleveland Municipal reer in law—even past his 80th birthday—con- Customer Service Department, Congressional School District in 1998, she began the monu- tinued to flourish and become all the more dis- Information Division. It was here that Charlie mental task of lifting the Cleveland School Dis- tinguished. His appointment by the United truly honed his skills serving GPO’s congres- trict out of its decades-old state of failure and States Supreme Court as a special master to sional customers. Over the years, Charlie despair. During her tenure, Ms. Bennett imple- assist in determining the true border between worked closely with Senate and House com- mented policies and programs that served to lllinois and Kentucky along the Ohio River is mittee staff, the Office of the Secretary of the raise the grade throughout the system, includ- but one example of how this keen legal mind Senate, the Clerk of the House, Sergeant at ing academic performance, financial stability continued its contribution to the jurisprudence Arms, and the Capitol Police on numerous and the restoration of school classrooms and of his State and Nation. projects. One of the most prestigious of these buildings. Additionally, Ms. Bennett forged vital This past Sunday’s Buffalo News editorial- projects was the Presidential Inauguration. partnerships with parents, teachers and local ized the career of Judge Jasen, and it is that Charlie coordinated all the printing require- and state leaders, thereby fostering an atmos- editorial with which I will close this extension ments for the Joint Congressional Committee phere of achievement and renewal through a of remarks. on Inaugural Ceremonies for the four inau- unified effort. On behalf of all Members of the House, I gurations from 1989 to 2001. Mr. Speaker, please join me in honor and extend to the Jasen family our most heartfelt In 1993, Charlie was promoted to Super- recognition of Superintendent Barbara Byrd sympathy, as well as our appreciation for the intendent, Congressional Printing Management Bennett, whose leadership, dedication and many contributions made by Judge Matthew Division, and in 2004, he was called on by the service on behalf of every child of the Cleve- Jasen to the American way of life. Judge Public Printer of the United States to serve as land Municipal School District has become a Jasen was the Court of Appeals’ first Polish- Strategic Marketing Officer. He has served in source of hope and foundation for academic American member, and it is fitting that I close that capacity until his retirement. achievement today, and for the future of public this extension of remarks with the traditional On behalf of the entire Congressional com- education in Cleveland. I wish Ms. Bennett Polish toast—‘‘Sto Lat’’—which literally trans- munity, I extend congratulations to Charlie for and her family an abundance of health, peace lated means ‘‘100 years.’’ While Judge Jasen his many years of exemplary service to the and happiness as she journeys onward from could not give a chronological century to serve GPO and the Congress. We wish him all the here. the people of this State and Nation, in effect he made good on that toast, and I am hon- best in his retirement. f ored to pay tribute to his memory here today. f HONORING THE LIFE OF RETIRED [From the Buffalo News, Feb. 12, 2006] IN HONOR AND RECOGNITION OF NEW YORK STATE COURT OF AP- JASEN, GENERATION’S LEGAL STANDOUT BARBARA BYRD BENNETT PEALS JUDGE MATTHEW J. Sorrow flows at the passing of one of the JASEN most respected and skilled lawyers and judges of his generation. Former Court of HON. DENNIS J. KUCINICH Appeals Judge Matthew J. Jasen, who died OF OHIO HON. BRIAN HIGGINS Saturday at the age of 90, was both a bril- IN THE HOUSE OF REPRESENTATIVES OF NEW YORK liant legal mind and a respected adviser who Tuesday, February 14, 2006 IN THE HOUSE OF REPRESENTATIVES guided the practice of law in this region and nationally. Mr. KUCINICH. Mr. Speaker, I rise today in Tuesday, February 14, 2006 Jasen was the first Polish-American and honor and recognition of Barbara Byrd Ben- Mr. HIGGINS. Mr. Speaker, on April 14, the last Western New Yorker to sit on the nett, upon the occasion of her retirement that 2005, as New York’s highest court prepared to state’s highest court, serving there for 18 follows seven years of steadfast service and sit outside of Albany for the first time in recent years, becoming senior associate judge there before retiring at the legally mandated age commitment as Chief Executive Officer of the memory, I had occasion to recognize the pro- of 70 (a mandate he upheld in writing the Cleveland Municipal School District. fessional career of retired New York State high court’s opinion on its validity). He also Ms. Bennett was born and raised in Harlem Court of Appeals Judge Matthew Jasen. Dur- was a highly regarded arbiter who, even in and was educated in the public school system. ing that extension of remarks, I was honored retirement, was called upon by the U.S. Su- She graduated high school early at age 16 to take note of the many personal and profes- preme Court to work as a ‘‘special master’’ and earned a Bachelor’s of Arts degree in sional accomplishments of Judge Jasen, in a deciding such questions as the proper loca- English from Long Island University at age 19. manner consistent with the honors bestowed tion of the Illinois-Kentucky boundary along She earned two Masters degrees, was a Penn upon him by his successor colleagues on the the Ohio River. He was known for clear and concise opinions, and for his mentoring of Fellow at Columbia University during her doc- Court of Appeals that day. lawyers and judges. toral studies and holds several honorary doc- Today, Mr. Speaker, I rise to call the He was a forceful arguer and legal scholar toral degrees. Ms. Bennett was an adjunct House’s attention to the passing of this great whose fairly common early year dissents to professor at several New York City universities legal giant in New York State. Judge Matthew Court of Appeals decisions in several areas

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor.

VerDate Aug 31 2005 06:31 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00001 Fmt 0626 Sfmt 0634 E:\CR\FM\A14FE8.001 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS E130 CONGRESSIONAL RECORD — Extensions of Remarks February 14, 2006 were later vindicated in subsequent court Public Policy Center Research Report Series, tional Campaign to Prevent Teen Pregnancy, rulings, sometimes after his retirement. He No. 06–1, issued in January. This analysis in the National Alliance of Business, Xavier Uni- won a string of legal honors, including a spe- my view—I do not impute it to either the Fed- versity, the American Chamber of Commerce cial Buffalo Law Review issue featuring ac- colades from the state’s top judges. eral Reserve or Ms. Sasser—strongly argues in Brussels, the Cincinnati Symphony Orches- Jasen should have been New York’s chief in favor of Federal legislation to raise the min- tra and the Cincinnati Art Museum. judge; he was proposed for that post by a imum wage. Mr. Pepper and his wife, Francie, have nominating commission in the late 1970s, but f three sons and one daughter, and reside in passed over by then-Gov. Hugh Carey for a the Cincinnati suburb of Wyoming. more politically connected junior judge. As a JOHN PEPPER HONORED AS A All of us in the Cincinnati area congratulate conservative Democrat and fiercely inde- GREAT LIVING CINCINNATIAN John Pepper on being named a Great Living pendent thinker, Jasen had distanced him- Cincinnatian. self from politics while serving on the high court; that cost him politically, but provides HON. JEAN SCHMIDT f OF OHIO a truer measure of his worth as a judge. HONORING DORIS WAHL Even during his retirement, New Yorkers IN THE HOUSE OF REPRESENTATIVES benefited from Jasen’s fair-mindedness and Tuesday, February 14, 2006 independence as he joined or led task forces HON. LINDA T. SA´ NCHEZ and committees dealing with matters such Mrs. SCHMIDT. Mr. Speaker, I rise today to OF CALIFORNIA as judicial conduct or traffic court fairness, honor John Pepper, an international business IN THE HOUSE OF REPRESENTATIVES and state agency adjudication procedures. leader, visionary, community activist and Jasen was a champion of the rule of law, and champion of education, who will be formally Tuesday, February 14, 2006 a man who would have desired no other epi- honored as a Great Living Cincinnatian on Ms. LINDA T. SA´ NCHEZ of California. Mr. taph. February 16 by the Greater Cincinnati Cham- Speaker, I rise today to recognize Mrs. Doris f ber of Commerce. Wahl’s 50 years community service and HIV/ RAISING THE MINIMUM WAGE IS The Chamber has bestowed this award on AIDS advocacy in Whittier, CA. Doris and her GOOD ECONOMICS distinguished members of the community an- husband Wally Wahl, moved to Whittier 50 nually since 1967. Recipients of this pres- years ago where they raised four beautiful HON. BARNEY FRANK tigious award are chosen on the basis of pro- children, Michael, Margie, Christopher and OF MASSACHUSETTS fessional achievement, community service, Paul. For over 20 years, Doris was an active leadership, compassion, and vision. Past hon- PTA member serving as president and chair- IN THE HOUSE OF REPRESENTATIVES orees have included Neil Armstrong, Dr. Albert woman of several District Advisory Commit- Tuesday, February 14, 2006 Sabin and Charles Scripps. tees. Mr. FRANK of Massachusetts. Mr. Speaker, Mr. Pepper has inspired and impacted the Over the years, Doris’s community involve- a study completed last month by Alicia Sas- lives of people in our community and across ment extended to local government where she ser, of the Federal Reserve Bank of Boston’s the globe. Throughout his career, he has led, served as commissioner of Parks and Recre- New England Public Policy Center, contains trained and motivated people by his example. ation for the city of Whittier and served twice good news for those of us who have been In his 39-year career at Procter & Gamble, as its chairwoman. Doris also served as presi- pushing for an increase in the minimum wage. Mr. Pepper helped to shape one of the world’s dent of the Whittier League of Women Voters, Ms. Sasser’s very careful and well-docu- largest consumer products companies. He promoting civic participation in government mented conclusion is that an increase in the began with the company in 1963. In 1974, he and the political process. minimum wage in the State of Massachusetts became general manager of Procter & Gam- On August 26, 1989, Doris lost her son would have significant overall benefits for the ble Italia, and in 1980, he became group vice Christopher due to complications with AIDS. people of the State. To summarize her conclu- president. In 1984, he was elected to the com- Doris’s loss and intimate involvement with the sion, ‘‘increasing the minimum wage by $1.50 pany’s board of directors and, in 1986, be- disease motivated her to found the Whittier in Massachusetts is likely to have a small im- came president. In the early 1990s, he led Rio Hondo AIDS Project, WRHAP, 2 years pact on employment—roughly on the order of Procter & Gamble’s expansion into Eastern later. What she learned during her son’s ill- 1 to 4 percent of affected workers. In addition, and Central Europe and Greater China. Mr. ness and in subsequent years was that AIDS according to the analysis presented in this re- Pepper was named chairman and chief execu- is not a disease solely driven by a virus but port, the combined impact of the two wage in- tive in 1995. He retired from Procter & Gamble also by fear, loneliness and depression. It is creases (contemplated and pending legislation in 2002, and retired as chairman of the execu- for this reason that WRHAP provided a com- in Massachusetts) would result in an esti- tive committee of the board in 2003. Following passionate support group for those suffering mated net wage gain of approximately $255 his service to Procter & Gamble, he served for with AIDS. Doris realized the true scope of the million. It should be noted, however, that the two years as vice president for Finance and local epidemic when the support group grew benefits of this increased wage gain may be Administration at Yale University, his alma to over 30 members after only 3 months. In diminished if employers respond by cutting mater. 1993, 2 years later, WRHAP was incorporated hours or reducing their contributions to health Mr. Pepper recently became chief executive as a nonprofit organization. insurance.’’ officer of the National Underground Railroad Since opening its doors, WRHAP has It should be noted, Mr. Speaker, that this is Freedom Center in Cincinnati. This role is es- served thousands of people living with AIDS an analysis of what will happen in one State pecially fitting for him, since he has been in- and provided HIV prevention information to if that State alone raises the minimum wage. strumental in the creation of the Freedom over 12,000 youth. WRHAP currently serves One of the potential negative effects is the Center and co-chair of its development effort. over 100 persons living with HIV/AIDS, con- loss of jobs for competitive reasons to the Mr. Pepper has also dedicated his time, en- ducts over 1,200 outreach contacts per year, nearby State of New Hampshire, which does ergy and leadership to improving education for and provides over 500 confidential HIV tests. not have a minimum wage. What this means our children. He has served as a hands-on Under Doris’s leadership, WRHAP has be- is that if we were to adopt a minimum wage leader for school reform, pushing schools come a one-stop resource for people with increase on the national level, we would get, across the socioeconomic spectrum to set AIDS. WRHAP’s clients receive case manage- I believe, the advantages that Ms. Sasser’s higher standards. He was also a driving force, ment assistance, mental health care, and sup- analysis, shows without that particular com- along with his wife, Francie, in the creation of port group therapy. Through collaboration with petitive disadvantage that comes from two the Cincinnati Youth Collaborative, a nationally other agencies, WRHAP’s clients can also ob- States of virtually identical social composition recognized program that provides youth em- tain outpatient medical and dental care. right next to each other, having significant ployment, mentoring and tutoring for those in In August 2004, Doris founded the Chris- minimum wage differentials. While obviously need. He currently serves as the topher Wahl Youth Center in Whittier as a there is international economic competition, it Collaborative’s vice chair. safe haven and HIV prevention resource for is not nearly as direct, especially in the indus- In 1994, Mr. Pepper chaired Cincinnati’s youth. tries that are affected by minimum wage in- United Way campaign, and has served on nu- Doris has become a nationally recognized crease. merous local and national boards, including figure in advocating for appropriate services Mr. Speaker, I recommend that Members the American Society of Corporate Executives, for people with AIDS, and she co-founded the read this report. It is too long for inclusion the Partnership for a Drug-Free America, the Southern California HIV/AIDS Advocacy Coali- here in the RECORD, but it is New England Partnership for Public Service and the Na- tion in 1998. Doris was twice selected as

VerDate Aug 31 2005 06:31 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00002 Fmt 0626 Sfmt 9920 E:\CR\FM\A14FE8.004 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS February 14, 2006 CONGRESSIONAL RECORD — Extensions of Remarks E131 Woman of the Year, once by the California leadership and her service to the Copyright Mr. Speaker, I pay tribute to Ed Masry’s State Assembly, once by the California State Office and to the Nation. spirit, perseverance and chutzpah. He fought Senate and received a Special Congressional f valiantly and successfully for the residents of Recognition in honor of Women’s History the Conejo Valley. His legacy will continue to Month. IN MEMORY OF EDWARD L. have a profound effect on his Valley, his State Mr. Speaker and distinguished colleagues, MASRY and his Nation. please join me in honoring Doris Wahl for her f many years of service to the community and HON. BRAD SHERMAN for her many years of HIV/AIDS advocacy. Let OF CALIFORNIA PAYING TRIBUTE TO LARRY WALL us wish her and her family the very best in re- IN THE HOUSE OF REPRESENTATIVES tirement. Tuesday, February 14, 2006 HON. THOMAS G. TANCREDO f Mr. SHERMAN. Mr. Speaker, during his 40- OF COLORADO IN THE HOUSE OF REPRESENTATIVES THANKING MARYBETH PETERS year career as an attorney in California, Ed- FOR 40 YEARS OF SERVICE ward L. Masry fought courageously not only Tuesday, February 14, 2006 for his clients but also for all people of the United States. As a strong advocate for the Mr. TANCREDO. Mr. Speaker, I rise today HON. VERNON J. EHLERS environment and open space, Mr. Masry to recognize a man who has been a great OF MICHIGAN worked to preserve our community’s most pre- asset to the health care community in Colo- IN THE HOUSE OF REPRESENTATIVES cious resources. His contributions to the rado. After 31 years with the Colorado Health and Hospital Association where he served as Tuesday, February 14, 2006 Conejo Valley, the State of California, and the country will never be forgotten. president for 21 of those years Mr. Larry Wall Mr. EHLERS. Mr. Speaker, I rise to bring to Sadly, Mr. Masry died on December 6, is moving on to undertake new challenges. the attention of my colleagues the distin- 2005. Today, I am pleased to pay tribute to During his tenure as president of CHA, guished career of Marybeth Peters, the United him. Mr. Masry moved to southern California Larry helped to increase the association’s stat- States Register of Copyrights, and to con- in 1940. He graduated from Van Nuys High ure and reputation as the primary source of gratulate her as she commemorates 40 years School in 1950 and then attended Valley Jun- credible information about hospitals in Colo- of service to our Government and to the ior College. He never received a bachelor’s rado. In addition, Mr. Wall worked to reaffirm American people. degree, opting instead to enlist in the U.S. CHA’s commitment to public health and ex- Marybeth Peters became the Register of Army in 1952, during the Korean conflict. After pand its community based role. Copyrights on August 7, 1994, the 50th per- serving our country, he was honorably dis- Over the past 31 years Colorado health son to hold that office since the appointment charged with the rank of corporal and was care systems have seen vast changes. During of the first Register of Copyrights, Thorvald soon accepted at Loyola Law School in Los Larry’s tenure, he has been a part of changes Solberg, in 1897. The mission of the Copyright Angeles. He graduated with a Juris Doctorate that have made Colorado a leader in public Office is to promote creativity by administering in 1960. accountability. In fact, while Wall served at and sustaining an effective national copyright Soon after graduation Mr. Masry began his CHA, Colorado hospitals became the first in system. The Copyright Office administers the law career, and in 1975 moved his law offices the nation to make mortality data for individual Copyright Act, Title 17 U.S.C.; provides policy to the San Fernando Valley. He gained exper- hospitals public. Contributions such as this and legal assistance to the Congress, the ex- tise and a national reputation in numerous demonstrate how valuable an asset Mr. Wall ecutive branch and courts; and provides copy- areas of the law, including criminal defense, is to the Colorado health care community. I right-related information and education to the business litigation, entertainment, the first wish the best to Mr. Wall in his future endeav- public. amendment, and toxic torts. His success as a ors. As chairman of the House Administration litigator earned him numerous awards, includ- f Committee and a member of the Joint Com- ing the esteemed Justice Armand Arabian Law mittee on the Library, I want to extend my & Media Award in 2000 and the Academy of IN HONOR AND REMEMBRANCE OF thanks for Ms. Peters’ leadership at the Copy- Justice Award from the Trial Lawyers for Pub- CARL. T. BRANCATELLI right Office, which is a vital component of the lic Justice in 2001. Library of Congress. The Library is the custo- Mr. Speaker, Mr. Masry became best known HON. DENNIS J. KUCINICH dian of the mint record of American creativity for his work on cases involving toxic environ- OF OHIO largely due to copyright deposits of books, mental contamination. In the early 1990’s, his IN THE HOUSE OF REPRESENTATIVES music, films, photographs, and other materials firm, renamed Masry & Vititoe in 1982, argued Tuesday, February 14, 2006 that reflect our creative society. The Ameri- for the people of Hinkley, California in the cana collections of the Library—millions of landmark case of Anderson v. Pacific Gas & Mr. KUCINICH. Mr. Speaker, I rise today in which are available on the Library’s Web site Electric. Mr. Masry won what was at the time honor and remembrance of Carl T. Brancatelli, through its American Memory digital collec- the biggest settlement for a civil class action United States Veteran, loving husband to the tions—have been assembled largely through lawsuit. This case was made into a movie, late Mary Brancatelli; dear father, grandfather, our Nation’s copyright system. Last year Erin Brockovich, which extolled the success of great-grandfather, and friend to many as well alone, the Copyright Office forwarded more Mr. Masry as a lawyer and a leader who as a successful entrepreneur. than 1 million items to the Library for its col- fought for the rights of the people in California. Mr, Brancatelli was born and raised in lections. I want to extend deepest thanks on Ed Masry was a friend and ally of mine and Cleveland, the son of Italian immigrants. His behalf of the Joint Committee on the Library to other local environmental advocates. His in- parents instilled within him a strong sense of Ms. Peters for her stewardship of the Copy- volvement with local environmental organiza- family, faith, and community. He gave these right Office as Register and her long years of tions was instrumental in protecting the Santa gifts from his parents to his own children—giv- service to Congress and the American people. Monica Mountains National Recreational Area, ing them a clear example of the significance of Prior to her appointment as Register of as well as other parks and open spaces in Los hard work, integrity, kindness, and giving to Copyrights, Ms. Peters served as Policy Plan- Angeles and Ventura Counties. I was proud to others. Mr. Brancatelli served our nation as a ning Advisor to the Register from 1983 to present him with a Certificate of Special Con- United States Marine and was stationed in 1994. She has also served as Acting General gressional Recognition in honor of his receiv- Korea during the 1950’s. Counsel of the Copyright Office and as chief ing the Environmental Hero Award from the For many years, Mr. Brancatelli worked as of both the Examining and Information and Environmental Defense Center in 2002. He a bus driver with the former Cleveland Transit Reference divisions. Ms. Peters is a frequent continued his outstanding work for environ- System. His expertise in the mechanical speaker on copyright issues. She is the author mental justice by serving as the CEO and trades led him to a long career as a Master of the General Guide to the Copyright Act of President of Save the World Air, Inc., a com- Mechanic. Equipped with a keen business 1976 and is recognized worldwide as a pre- pany dedicated to improving air quality. sense, Mr. Brancatelli also operated several eminent authority on intellectual property mat- In addition, Ed Masry served two terms as successful small business ventures throughout ters. city councilman and mayor of Thousand Oaks. his life, even after retirement. As owner of the Mr. Speaker, Marybeth Peters can certainly During his tenure he fought to implement his Shanty Inn Tavern on Harvard Avenue, Mr. be proud of her long and distinguished career slow-growth platform to protect open space in Brancatelli regularly sponsored community in Government service. We are proud of her the Conejo Valley. baseball teams.

VerDate Aug 31 2005 07:05 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00003 Fmt 0626 Sfmt 9920 E:\CR\FM\A14FE8.007 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS E132 CONGRESSIONAL RECORD — Extensions of Remarks February 14, 2006 Mr. Speaker, please join me in honor and State Park. He was a member of the CCC (Ci- The Grace Alice Campbell Foundation, remembrance of Carl T. Brancatelli, whose vilian Conservation Corps) that helped build founded by her parents Brenda and Chris kindness, energy and compassion for others it. He was in the Army before and after the Campbell of Mansfield, MA, which is in my draft and before and after the war (World district, has been established to raise public will be greatly missed by everyone who knew War II) for about five years.’’ him well, especially his family and friends. I Trusso said that at their traditional break- awareness of these birth defects, assist in the extend my deepest condolences to his chil- fast meeting Tuesday he brought a toast to treatment of these children, and raise research dren, Robert, Wanda, James, Tina, Carl, and the little restaurant where the faithful gath- funds to help doctors discover the cause of Tony; to his grandchildren, great-grand- ered with an empty chair for Cusimano who congenital heart defects and find a cure. children, and also to his extended family and was remembered by his surviving comrades. Grace Alice was born on September 4, 2003, friends. Mr. Brancatelli lived his life with great Trusso concluded with, ‘‘I owe him a lot. I with Hypoplastic Left Heart Syndrome, and by joy, energy and with a loving focus on his fam- don’t see anyone who can take his place. the time she was 5 months old, she had al- What a wonderful person.’’ ily and friends, and he will live on within their ready had two open-heart surgeries. Now as a He was influential in returning the City of toddler, Grace Alice’s perseverance is a won- hearts and memories forever. Jamestown from a ‘‘non-partisan’’ to the f ‘‘party’’ system for local elections. He was a derful example of love and courage for others past member of the Jamestown Area Cham- every day. The foundation, launched by her TRIBUTE TO FRED CUSIMANO ber of Commerce and served on its Govern- parents, serves as a support group for the mental Affairs Committee and its Greater families of those affected, encouraging these HON. BRIAN HIGGINS Jamestown Industrial Development Com- families to celebrate life, remember loved ones OF NEW YORK mittee. Cusimano was a past member of the lost, and to honor dedicated health profes- city Planning Commission and served as IN THE HOUSE OF REPRESENTATIVES sionals. chairman of the county Economic Develop- I extend my congratulations and express my Tuesday, February 14, 2006 ment Commission. He also served several admiration to the Grace Alice Campbell Foun- Mr. HIGGINS. Mr. Speaker, I rise today to years on the Advisory Council to the state Legislature’s Joint Legislative Committee dation for its hard work on behalf of those af- honor the life of Mr. Fred Cusimano, a life on Election Law, and for many years served fected by congenital heart defects and their long resident of Chautauqua County and a as a consultant and honorary member to the families. I also ask that, because of the re- truly remarkable man. Election Commissioners Association of New solve of the Campbell family as well as many COUNTY REMEMBERS FRED CUSIMANO York State. others across the country, the article, ‘‘Heart (By Manley J. Anderson) ‘‘He was considered the father of the Chau- Buddies,’’ by Deborah Knight Snyder in the tauqua County Parks System,’’ said Anthony Friends and associates of the late Fred J. Norton Mirror, published on Friday, February M. Teresi, a longtime Cusimano friend and Cusimano of 190 Linwood Ave., Jamestown, 3, 2006, documenting the courage and strug- former county legislator. ‘‘He was very ac- who died Monday morning in the WCA Hos- tive with the parks until the end. The West gle of these families, be printed here. pital emergency room have expressed their Side Trail was named for him. He helped ev- HEART BUDDIES thoughts about him. (By Deborah Knight Snyder) ‘‘He was a man for all seasons,’’ said Jo- eryone who asked for help and it was good seph Trusso Jr., longtime friend, fellow Dem- help. With me, he was a good and loyal friend One in every 100 babies is born with a heart ocrat and veteran member of the Chau- who helped me a lot with some of the county defect. February 7–14 is Congenital Heart Defects tauqua County Legislature. ‘‘He worked on issues when I was a legislator. When he be- (CHD) Awareness Week, and a group of Mas- an oil rig, he owned a gas station, he was a lieved in something he pursued it until it sachusetts mothers agrees word needs to get tree farmer. We planted Christmas trees. I was done. I consider him the brother I never out about the many children living with helped him plant some of those trees.’’ had. I miss him dearly.’’ CHDs. For these mothers, that awareness is Cusimano had a lengthy career in the vot- John C. Cheney of Belleview, Bemus Point, simply a way of life, because their children ing machine industry, first as sales manager a longtime member and former chairman of were born with heart defects. of Voting Machine Service Inc. owned by the Chautauqua County Parks Commission, said ‘‘People know more about conditions like T.H. Huhn Agency. He also worked as sales of Cusimano, ‘‘He was with us for years. He Down’s Syndrome and spina bifida than they representative for the former Automatic was one of the founders of it. He’s a real loss. do about heart defects, when heart defects Voting Machine Company from 1960–1990, and We’ve named one of the trails after him. He are actually the number one birth defect in in the later part of his career was named had a lot to do with getting those trails or- the United States,’’ said Lyn McPhail of vice-president of Automatic Voting Machine. ganized and started.’’ Braintree during a recent support group He had also worked for the Voting Machine Fred was a man who fully understood how meeting in Mansfield for mothers of children Service Center in Gerry, until his retirement to live to its fullest and that Mr. Speaker is with CHDs. in 1992. why I rise to honor him today. Increased consciousness will hopefully lead Voting machines weren’t Cusimano’s only f to more help and, ultimately, to more fund- foray into politics, however. Trusso said ing, she said. There are approximately 35 dif- Cusimano was respected by both local Re- THE GRACE ALICE CAMPBELL ferent types of congenital—meaning present publicans and Democrats while being invited FOUNDATION at birth—heart defects. to President John F. Kennedy’s 1960 inau- McPhail is the mother of 15-month-old guration. Cameron, who was diagnosed with a CHD ‘‘He worked for Automatic Voting Machine HON. BARNEY FRANK when he was just 11⁄2 days old. and became vice president,’’ Trusso said. ‘‘He OF MASSACHUSETTS Cameron has had two heart valve oper- was a member of the Board of Supervisors ations already and still needs a valve re- IN THE HOUSE OF REPRESENTATIVES when there were only about seven of them. placement. The quandary, his mother ex- He was par excellence about elections. He Tuesday, February 14, 2006 plains, is what to do next. There is a small knew everything about election law and Mr. FRANK of Massachusetts. Mr. Speaker, mechanical valve available for children who wrote most of the election laws in New York are at least 2 years old, but that valve will state. He was a strong Democrat who be- this week is Congenital Heart Defects, CHD, become too small as he grows and would ulti- lieved in the democratic way and he wished Awareness Week. Across America, over 1 mil- mately require yet another operation. How- at times we could go back to it. Fred’s prede- lion families face the challenges and hardships ever, she said, there is clinical testing cur- cessors were all Republicans. You can call of raising children with congenital heart de- rently underway in Canada and Europe him a man for all seasons. You can call him fects. Roughly 1 in 125 children are born with which could produce better options. a Renaissance man. He advised the city’s 1 of approximately 35 different congenital ‘‘You’re just racing against time,’’ she Democratic and Republican mayors. He said. worked very hard for the parks in the coun- heart defects in the United States. Some of McPhail is a member of Heart Buddies, a ty. He had a trail named after him.’’ these are treatable with medications while oth- group of mothers and kids from all over the Trusso also noted Cusimano’s dedication to ers require surgeries or even transplants. Boston area who get together every month the Bemus Point rest stop and Chautauqua Heart defects are the No. 1 birth defect in the at each other’s homes to lend and provide Lake overlook even when he wasn’t feeling United States, affecting 32,000 babies in the support. The mothers initially met through well. United States every year. They are also the literature from Children’s Hospital and ‘‘You never see a Fred Cusimano come leading cause of birth defect related deaths through Little Hearts, Inc., a Connecticut- along very often,’’ Trusso said. ‘‘He’s a great worldwide during the first year of life, and based organization which lends support to loss to the city, the county and the state and families of kids with CHDs. especially to the Democrats. This man while genetics or environmental factors are as- The children—who outwardly appear to be should and will be honored. He devoted a sumed to be the cause for congenital heart healthy, chubby babies and toddlers—play, good part of his life to the parks of Chau- defects, it will take more research to help un- while the mothers talk about their experi- tauqua County. He also helped Allegany cover their cause. ences.

VerDate Aug 31 2005 06:31 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00004 Fmt 0626 Sfmt 0634 E:\CR\FM\A14FE8.011 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS February 14, 2006 CONGRESSIONAL RECORD — Extensions of Remarks E133 The mothers—who sound like cardiologists friends in Heart Buddies, Amy has undergone REV. HERBERT THOMPSON HON- to the untrained ear—discuss the children’s two of those three operations already. ORED AS A GREAT LIVING CIN- progress and their setbacks, and about new ‘‘These little kids have already experi- CINNATIAN medicines and treatments which could help enced things most people never have to expe- their kids. When the mothers are together, they share rience in their whole lives,’’ Delys Poynton HON. JEAN SCHMIDT a special bond and code of understanding. said. ‘‘They get so used to seeing doctors, OF OHIO they get stranger fatigue’’ which affects the Parents of kids who are ‘‘heart healthy’’— IN THE HOUSE OF REPRESENTATIVES a term the mothers use to describe children way they react to other people. Tuesday, February 14, 2006 without a CHD—just can’t comprehend their Ellie Lea recalled taking Megan to a hos- daily lives. pital to visit a friend, and Megan ‘‘freaked Mrs. SCHMIDT. Mr. Speaker, I rise today to ‘‘It’s nice to able to talk and not have to out’’ as soon as she got into the hospital. honor the Right Reverend Herbert Thompson, explain everything,’’ said Brenda Campbell of Mansfield, whose daughter, Grace, now 29 Though just a baby, Megan understood ex- Jr., a bishop, mentor, human rights advocate months old, was born with a congenital heart actly where she was, and she wasn’t happy and community leader, who will be formally defect. about it. honored as a Great Living Cincinnatian on ‘‘We can ask each other ‘does she look blue There’s a name for the babies’ reaction: February 16 by the Greater Cincinnati Cham- to you?’ That’s our life now,’’ Campbell said. ‘‘white coat syndrome.’’ The children are so ber of Commerce. A bluish color could be an indicator that used to being poked and prodded by doctors The Chamber has bestowed this award on the child is not getting enough oxygen, and that they develop an aversion to them. distinguished members of the community an- is a possible precursor to these parents’ nually since 1967. Recipients of this pres- worst fear: that their child is going into con- Also, Delys Poynton said, many of the CHD gestive heart failure. kids develop eating problems. tigious award are chosen on the basis of pro- fessional achievement; community service; ‘‘That’s certainly a daily worry,’’ Lyn ‘‘When you have tubes up your nose for so McPhail said. leadership; compassion; and vision. Past hon- long, you don’t want anything in your Many of the mothers got their diagnoses orees have included Neil Armstrong, Dr. Albert mouth,’’ she said. while they were still pregnant, while others Sabin and Charles Scripps. received the news—which they all called Liz Bogyo of Chelmsford is the mother of Rev. Thompson was born and raised in ‘‘devastating’’—when their babies were just 14-month-old twins: Allison, who is heart New York, where his character was shaped by one or two days old. healthy, and Andrew, who was born with a Grace Campbell was born without a left the hard-working and diverse community of CHD. Andrew was diagnosed when Liz was 17 Harlem during the 1940s and 1950s. After ventricle in her heart. She had her first sur- weeks pregnant. gery when she was just six days old and her serving in the United States Air Force from second surgery at 51⁄2 months. She recalled the trauma and exhaustion of 1952–1956, he enrolled at Lincoln University ‘‘They put in totally different plumbing to having a brand new baby at home, Allison— in Pennsylvania, where he graduated cum help her right ventricle do all the work,’’ ‘‘who we didn’t even get a chance to know’’ laude in 1962. Brenda Campbell explained. because she and her husband were spending After a profound religious experience The Campbells have taken a proactive ap- so much time at the hospital with Andrew. prompted him to serve, he enrolled at The proach by organizing the Mansfield based ‘‘Grace’s Run,’’ which annually raises money Andrew has undergone two operations and General Theological Seminary, where he com- for families with children with CHDs and for will have to have one more. If that one goes pleted his seminary work and earned his mas- Children’s Hospital. well, he has an 85 percent chance of survival, ter of divinity degree. He received his doc- Zachary Duong of Wilmington was born on his doctors have said. torate of ministry from The United Theological the same day as Grace, and his mother, Shei- Like the other families, the Bogyos said Seminary in Dayton, Ohio. la, met Brenda Campbell in the hospital. they take each day at a time and hope for Ordained into the priesthood in 1965, Rev. Zachary is now 2 years old. He was diagnosed the best. Thompson served various churches and com- with his CHD the day he was born and was munities in New York until 1988, when he was rushed to Children’s Hospital, where he spent Ruth Kennedy of North Reading found out the first three months of his life. when she was 19 weeks pregnant that her elected Bishop Coadjutor of the Diocese of Megan Lea of Mansfield, now 18 months son, Ewan, now 2 years old, had a CHD. She Southern Ohio. In 1992, he was consecrated old, was born with a very rare set of CHDs. received an initial diagnosis of just ‘‘heart as the eighth Bishop of Southern Ohio, and She has a condition known as Ebstein’s defect’’ with no additional details and recalls the first African-American elected to serve the anomaly, an abnormality in the tricuspid ‘‘just sobbing’’ as she walked past the other Diocese of Southern Ohio in this role. He was valve. She also has cardiomyopathy, a dis- women at Mass General who were waiting to only the fourth African-American diocese ease of the heart muscle that can cause it to get their ultrasounds. Ewan has had two op- bishop in the history of the Episcopal Church. lose its pumping strength. With cardio- erations with another one coming up. Although he has lived in Cincinnati only myopathy, doctors have told the Leas that about one-third of the kids get better, one- ‘‘Long-term, they can’t tell you what to since 1988, Rev. Thompson has had an enor- third stay the same, and one-third get worse, expect. No one survived before. You just mous and lasting impact on our community. so Megan’s parents have no choice but to have to take it day by day and be happy with For example, in 1993, he organized a com- wait that one out. what you have,’’ Ruth Kennedy said. prehensive ‘‘Summit on Racism’’ to ease racial There is a possibility that she will need a Because of the advances they’ve made in tensions within the city. He also helped to heart transplant at some point. She will also push forward the concept for the National Un- probably need valve surgery for the Ebstein’s the last 20 years, there is no existing group of adults who would have had access to the derground Railroad Freedom Center. anomaly. Right now doctors are trying to Throughout his ministry, he has lived by manage her conditions with medications, medical care these babies are now receiving, and she is currently on four different heart the mothers said. Consequently, there is no these words: ‘‘To reconcile, to heal, to liberate, drugs. Megan was on oxygen for the first 10 real information available on what kind of to serve.’’ Rev. Thompson recently retired months of her life but is now breathing well future awaits these children. Their parents from the Diocese of Southern Ohio, but con- on her own. have been told by the children’s doctors not tinues to be actively involved in the commu- ‘‘The progress they’re making is unbeliev- to expect Olympic athletes, but to hope for a nity. able, but it’s scary because we don’t know normal life. Still, no one knows for sure. The Rev. Thompson has dedicated his time and what their future is,’’ Ellie Lea said. ‘‘Her situation has given the mothers a different energy to many organizations, including serv- cardiologist said that Megan looks a lot bet- outlook on life. ing as chair of the Presiding Bishop’s Fund for ter than expected. We just take it one day at a time.’’ ‘‘It’s like a poem I heard about,’’ Lyn World Relief and co-founder of Global Epis- ‘‘The mother’s group is good, because we McPhail said. The poem is all about planning copal Ministries. He has also served on the understand each other,’’ she continued. for a trip to Italy, and anticipating being in boards of St. Augustine College, Bexley Hall ‘‘Friends who aren’t ‘heart moms’ ask, ‘So, is Italy, but when you arrive at your destina- Seminary, General Theological Seminary, she all fixed?’’’ tion, you’re actually in Holland. You deal Kenyon College, Kanuga Conference Center, ‘‘I hate it when people ask that!’’ ex- with being in Holland, she said, ‘‘but the Cincinnati Symphony Orchestra, Cincinnati claimed Delys Poynton of Braintree, the dream you had of going to Italy is still very Ballet, Cincinnati Opera and the Freedom mother of 19-month-old Amy, who was born real.’’ with Hypoplastic Left Heart Syndrome Center. Among his many awards and honors (HLHP). Kids with HLHP undergo a total of ‘‘You just appreciate every little thing all include the Arts Consortium of Cincinnati’s three operations—known as the Norton pro- the more. You’re so grateful for the good Martin Luther King Jr. Dreamkeeper award. cedure, after the doctor who discovered it— things,’’ said Ellie Lea. ‘‘It’s a very hum- Rev. Thompson has three children and one and then hope for the best. Like some of her bling experience.’’ grandchild.

VerDate Aug 31 2005 06:31 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00005 Fmt 0626 Sfmt 9920 E:\CR\FM\A14FE8.015 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS E134 CONGRESSIONAL RECORD — Extensions of Remarks February 14, 2006 All of us in the Cincinnati area congratulate as the recipient of the 2005 Individual Pride cer Society. Marty’s energy, warmth and sig- Rev. Thompson on being named a Great Liv- Award for his committed and compassionate nificant service continues to offer a light of ing Cincinnatian. volunteerism in raising funds and raising com- hope and the promise for a better tomorrow f munity awareness on behalf of the American within the City of Parma and throughout our Cancer Society. entire community. HONORING C. THOMAS KEEGEL Marty’s journey of public service began f nearly thirty years ago, while a student at HON. LINDA T. SA´ NCHEZ John Carroll University, where he served as a IN TRIBUTE TO ALAN AND ROMI SKOBIN OF CALIFORNIA Congressional Assistant to then United States IN THE HOUSE OF REPRESENTATIVES Congressman Ronald Mottl. After graduating at the top of his class with a bachelor’s degree Tuesday, February 14, 2006 HON. BRAD SHERMAN in political science, he accepted the position of OF CALIFORNIA ´ Ms. LINDA T. SANCHEZ of California. Mr. Deputy Clerk with the Cuyahoga County IN THE HOUSE OF REPRESENTATIVES Speaker, I rise today to recognize Mr. C. Court. He then served for eight years as a Tuesday, February 14, 2006 Thomas Keegel for his 45 years as a com- Legislative Representative for the Seafarers mitted member of the International Brother- Union, where he garnered vital insight into the Mr. SHERMAN. Mr. Speaker, I rise today to hood of Teamsters. political processes that took him from our local pay tribute to Alan and Romi Skobin for their Mr. C. Thomas Keegel has been a Team- community to Capitol Hill. civic and philanthropic service to Los Angeles ster since 1959, when he got his first trucking Marty has been entrusted with the faith and and the city of San Fernando and, particularly, job and became a member of Teamsters confidence of Parma residents and with mem- their good work for the residents of my district Local 544 in Minneapolis, Minnesota. From bers of the Cuyahoga County Democratic in the San Fernando Valley. steward to his current position of General Sec- Party since the early eighties, as voters have On March 26, 2006, Alan and Romi Skobin retary-Treasurer, Keegel has served as an consistently supported him in various City and are being honored by the executives of the elected Teamster officer for three decades. County elected roles. In 1982, Marty was Los Angeles Jewish Home for the Aging for Keegel’s skills as the union’s chief financial elected as the Cuyahoga County Democratic their outstanding involvement with the organi- officer were honed in the Minneapolis-St. Paul Executive Committeeman. That same year, he zation. Their care for the elderly residents of area. He built an area pension fund from $3 was elected to represent residents of Ward 3 the home demonstrates to all of us the impor- million in assets to a $220 million powerhouse in the City of Parma and was elected to the tance of taking care of our parents and grand- for Teamster retirees. That pension fund now position of Ward 5 Democratic Leader. parents—this country’s most important na- offers a top benefit of $55,200 per year and In 1991, Marty was elected for a six-year tional treasures. excellent health coverage. term as the Clerk of Court for the City of Mr. Speaker, Alan and Romi have a record Since taking office on March 19, 1999, Parma Municipal Court. He was re-elected to of community and civic service that spans Keegel has instituted sweeping reforms in a second term in 2003. In addition to his pro- more than 30 years. Alan, a graduate of Cali- every area of the Union’s finances. He has fessional endeavors, Marty has been a tireless fornia State University, Northridge, has been a balanced the budget for the first time in more volunteer and champion of numerous volun- longstanding business leader in the San Fer- than a decade, hired skilled auditors and ac- teer causes, and has been an active volunteer nando Valley. Currently he serves as vice countants, developed programs to extend in many roles, including chairing school levy president and general counsel of Galpin Mo- these reforms to Teamsters Local Unions, campaigns; raising funds for the Byers Field tors, Inc. and is a member of the executive Joint Councils, Divisions and Conferences and Foundation and Veterans Memorial; co- committee and board of directors. has undertaken the task of strengthening the chairing fundraising drives for the American He has also served as a commissioner with Union’s treasury and Strike Fund. Cancer Society; and active leadership roles in the Los Angeles Police Department since Keegel has taken a leading role in enforcing several civic organizations, including the 2003. In this capacity, he has focused on the the Hoffa administration’s commitment to run- Parma Elks and the Parma Area Chamber of Community Based Policing program along with ning a clean union. As General Secretary- Commerce. Additionally, Marty is the founder many other issues. His work for the city and Treasurer, he instituted legal actions to re- and current chairman of the Community Lead- the Los Angeles Police Department truly af- cover money stolen from the Union treasury ership Group, comprised of elected officials, fects each Angelino personally. by the prior administration. He created safe- business owners and community activists Alan is a founding director and executive guards to ensure that no such embezzlement whose mission is to foster positive change committee member of the Sheriffs Youth ever occurs again. Keegel lent his energy, ex- within all levels of the Parma community Foundation of Los Angeles County, which pertise, and enthusiasm to the continuation of through the power of a unified commitment, funds education and intervention programs for the administration’s comprehensive anti-cor- shared vision and collective focus. at-risk youth. Alan, a two-time cancer and ruption program. Marty’s leadership, achievement, and most brain tumor survivor, is also involved with Pa- As General Secretary-Treasurer, Keegel vital of all, his integrity and genuine concern dres Contra El Cancer, a nonprofit organiza- aims to lift up his Teamster sisters and broth- for others, is a united legacy that co-exists tion that improves the quality of life for chil- ers to even greater heights through his work with, and is strengthened by, the integrity, dren with cancer. as their fiscal watchdog and the guardian of dedication, professional and personal excel- Romi Skobin truly exemplifies the American their hard-earned dues money. lence and shared vision of his partner in life— dream. Her inspirational story began when she Mr. Speaker and distinguished colleagues, his wife, Lynn M. Vittardi. came to the United States as a refugee from please join me in honoring Mr. C. Thomas With family as the cornerstone of their lives, Cuba in 1969. Romi also received her edu- Keegel for ensuring the International Brother- Marty and Lynn have instilled a deep sense of cation locally, at Los Angeles Valley College, hood of Teamsters’ continued financial stability giving back to the community and service to and began her career in public service when and accountability. others within the hearts of their own children, she joined the San Fernando Police Depart- f now grown. Marty and Lynn’s united focus on ment in 1974. She currently serves as the their parents, siblings, and above all, their chil- records/system administrator, the highest IN HONOR AND RECOGNITION OF dren, Allison, Jessica and Mark, has never ranking civilian position in the SFPD, and is MARTIN E. VITTARDI wavered and continues to be the center of the city of San Fernando’s most senior em- their lives. Their children have followed a path ployee. HON. DENNIS J. KUCINICH of professional excellence and service to oth- Romi has also played an important role in OF OHIO ers, from the examples set by Marty and Lynn. Alan’s success by raising their two successful IN THE HOUSE OF REPRESENTATIVES Allison, her husband Nick and Jessica and her children, Jeff and Jennifer, thereby allowing husband, Dominick, are education profes- Alan to attend law school and participate in Tuesday, February 14, 2006 sionals. Their son Mark is in college, majoring numerous civic activities. Mr. KUCINICH. Mr. Speaker, I rise today in in political science. Mr. Speaker, Alan and Romi Skobin are in- honor and recognition of Martin E. (Marty) Mr. Speaker and colleagues, please join me tegral parts of the San Fernando Valley com- Vittardi, devoted family man, public servant, in honor and recognition of Martin E. Vittardi, munity and I wish to congratulate them whole- community leader and dedicated volunteer. for his unwavering dedication, integrity and heartedly on being honored by the executives The leaders and members of the Parma Area outstanding public service, especially his an- of the Los Angeles Jewish Home for the Chamber of Commerce recently named him nual volunteer efforts with the American Can- Aging.

VerDate Aug 31 2005 06:31 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00006 Fmt 0626 Sfmt 9920 E:\CR\FM\A14FE8.019 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS February 14, 2006 CONGRESSIONAL RECORD — Extensions of Remarks E135 THANKING ROSA CHEN FOR HER Business Women’s Conference and Expo, U.S. BUDGET CUTS WORRY SERVICE TO THE HOUSE held this year at Cleveland’s Cleveland Ren- HOSPITALS aissance Hotel & Conference Center. HON. VERNON J. EHLERS The Conference & Expo is a collaborative HON. BARNEY FRANK OF MICHIGAN effort, presented by the Hispanic Chamber of OF MASSACHUSETTS IN THE HOUSE OF REPRESENTATIVES Commerce for Ohio, the Small Business Ad- IN THE HOUSE OF REPRESENTATIVES Tuesday, February 14, 2006 ministration, the Urban League, the Northeast Tuesday, February 14, 2006 Ohio Minority Business Council (NOMBC), the Mr. EHLERS. Mr. Speaker, on the occasion National Association of Women Business Mr. FRANK of Massachusetts. Mr. Speaker, of her retirement in February 2006, I rise to Owners (NAWBO) and a coalition of Cham- in the February 8 issue of the Sun Chronicle, thank Ms. Rosa Chen for 16 years of out- bers of Commerce throughout Ohio. The event published in Attleboro, Massachusetts, there is standing service to the U.S. House of Rep- promises to attract hundreds of women busi- a very good article about the reaction of hos- resentatives. ness owners and numerous exhibitors. pitals to the President’s proposal to change Rosa began her career at the House work- the Medicare law so that future spending ing as a senior programmer/analyst. In that The organizers of the Conference & Expo would be less on Medicare than it otherwise capacity, Rosa has served this great institution are focused on promoting women’s business would be. for the last 16 years as a valuable employee ventures and fostering vital connections of In particular, the article quotes Linda at House Information Resources, HIR, within support where women entrepreneurs can find Shyavitz, who is the president and CEO of the Office of the Chief Administrative Officer. resources to expand and improve their busi- Sturdy Memorial Hospital, an excellent med- Rosa has made significant contributions in the ness goals. Additionally, the Conference and ical facility that serves a very important and di- development of the Office Systems Manage- Expo will provide a forum where women busi- verse population in the city of Attleboro. ment, OSM, application. The OSM application ness owners can display their services and Reading the article, including the comments has been used by the CAO to control equip- products to Americas leading corporations and of Ms. Shyavitz, reinforced my view that these ment inventory. Most recently, Rosa has public agencies dedicated to doing business proposed changes that the President has put played a significant technical support role on with women-owned businesses. forward are ill advised and would do social the Fixed Assets and Inventory Management Mr. Speaker, please join me in honor and damage. I think it is important for Members to System, FAIMS, where she was responsible recognition of the 2006 Ohio Business Wom- understand what people who are charged with for Oracle Developer reports customer sup- en’s Conference and Expo, a collaborative important responsibilities think about these port, and assisted with barcode function imple- venture that promises to bolster the success proposed reductions in future spending pat- mentation for FAIMS physical inventory. of women business owners throughout our re- terns that the President has called for, and be- On behalf of the entire House community, I gion. The event, while reflecting the continued cause Ms. Shyavitz is an extremely well-quali- extend congratulations to Rosa for her many struggle of women and minorities to attain fied and thoughtful administrator of a very im- years of dedication and outstanding contribu- economic equality and opportunity, also high- portant medical facility, I was particularly tions to the U.S. House of Representatives. lights the reality that through continued sup- pleased to have this chance to share her We wish Rosa many wonderful years in ful- port and collaboration, the road to economic views with our colleagues. filling her retirement dreams. security and the attainment of professional [From the Sun Chronicle, Feb. 8, 2006] f dreams will be open to all women, clearing a U.S. BUDGET CUTS WORRY HOSPITALS PAYING TRIBUTE TO COURTNEY path on which the next generation of women (By Gloria LaBounty) ZABLOCKI entrepreneurs will follow. ATTLEBORO.—Hospital administrators are keeping a wary eye on Congress as it plows f through the Bush administration’s’s pro- HON. THOMAS G. TANCREDO posed cuts in Medicare. OF COLORADO HONORING HADLEY A. WEINBERG ‘‘I think hospitals all over the country will IN THE HOUSE OF REPRESENTATIVES be fighting this,’’ said Linda Shyavitz, presi- dent and chief executive officer of Sturdy Tuesday, February 14, 2006 HON. BRIAN HIGGINS Memorial Hospital in Attleboro. Mr. TANCREDO. Mr. Speaker, I rise today According to initial reports, Bush’s new to pay tribute to a talented young woman from OF NEW YORK $2.7 trillion budget plan would mean a loss in Massachusetts of $758 million in Medicaid Highlands Ranch, CO, Ms. Courtney Zablocki. IN THE HOUSE OF REPRESENTATIVES funds. Courtney will proudly represent these United It would also mean a reduction of $213 mil- States of America in the 20th Winter Olympiad Tuesday, February 14, 2006 lion in Medicare payments to health-care currently underway in Torino, Italy. Courtney providers over five years. will be competing as a slider in the women’s Mr. HIGGINS. Mr. Speaker, I rise today to The Medicaid impact is still vague, how- luge events during this Olympiad. honor Hadley A. Weinberg of Bemus Point, ever, because the state is redesigning its pro- Courtney has been training as a slider for New York for being named by the Consumers’ gram, the Massachusetts Hospital Associa- the past 13 years. She will be competing in Research Council of America to its list of best tion says. The Medicare piece already has hospitals her second Winter Games. As a member of financial planners throughout the United States. concerned. the United States Olympic women’s luge team Although information so far has been pre- in Salt Lake City, Courtney finished 13th. In Mr. Weinberg a partner at Weinberg Finan- sented in broad terms and details are still the final World Cup event before the Olympics cial Group, Financial Education Resources days away, Shyavitz said indications are Courtney finished in a promising fifth position. and Chautauqua 401K with a total of eight af- that the proposal could mean a reduction to Mr. Speaker, I rise to wish Courtney Za- filiates at offices in Jamestown and Buffalo. Sturdy of $575,000 per in Medicare payments. blocki a safe, successful and enjoyable Winter He has served thousands of clients offering fi- All elderly patients would still be cared for Olympics as she represents our country in at Sturdy, but the hospital would get less re- nancial services from wealth management to imbursement for the care it provides. Italy. retirement plans and is involved with numer- Shyavitz said. f ous community organizations. Asked how the hospital would compensate for the loss in revenue, Shyavitz said it IN HONOR OF THE 2006 OHIO BUSI- The criteria employed by the Consumers’ Research Council complies its best financial would be premature to speculate because the NESS WOMEN’S CONFERENCE information has just come out and the presi- AND EXPO planners list using criteria it deems valuable in dent’s intentions are still being absorbed. determining its top professionals. This criteria But she said what hospitals will do in the includes experience, training, professional as- short term is urge members of Congress to HON. DENNIS J. KUCINICH sociations and financial certifications. All cri- reject the cuts and not support the budget. OF OHIO teria Mr. Weinberg has accomplished all of Paul Wingle, senior director of commu- IN THE HOUSE OF REPRESENTATIVES this in his 23 years of service to the industry. nications for the state hospital association Tuesday, February 14, 2006 or MHA, said the Medicare cuts would put a Mr. Weinberg has displayed extreme excel- financial strain on hospitals, and more of Mr. KUCINICH. Mr. Speaker, please join me lence in the field of financial planning, that is them would serve patients at a loss, or at a in honor and recognition of the 2006 Ohio why, Mr. Speaker, I rise to honor him today. very thin margin.

VerDate Aug 31 2005 06:31 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00007 Fmt 0626 Sfmt 0634 E:\CR\FM\A14FE8.024 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS E136 CONGRESSIONAL RECORD — Extensions of Remarks February 14, 2006 ‘‘Hospitals would have to scramble to Mr. Bortz earned his Master of Business brilliant character portrayals resonated with make up the loss,’’ he said, and some might Administration from Harvard University. He moviegoers worldwide, connecting us all in our do that through cutbacks, or through at- has three sons, all of whom work with him at shared humanity. tempts to make up the revenue elsewhere. Towne Properties, two stepchildren, and six That in turn creates pressure for rate in- grandchildren. Although not often cast as the leading man, creases. All of us in the Greater Cincinnati area Mr. Penn’s beautifully understated perform- Shyavitz said hospitals cannot simply congratulate Mr. Bortz on being named a ances consistently lent grace and authenticity raise rates, and would have to negotiate in- Great Living Cincinnatian. to every role he played. From his endearing creases with health insurance companies. f performance as an insecure teenager in Foot- But she said many hospitals will want to do loose, to his colorful and unforgettable per- that if the cuts materialize. HONORING JAMES P. HOFFA Shyavitz said she is confident that Massa- formances in Reservoir Dogs, True Romance, chusetts congressmen and senators, includ- ´ The Funeral, Pale Rider and Mulholland Falls, ing Sen. John Kerry and Sen. Edward Ken- HON. LINDA T. SANCHEZ Mr. Penn’s personal integrity and depth of nedy, and U.S. Reps. James McGovern and OF CALIFORNIA character clearly radiated onscreen. Barney Frank. will oppose the cuts. IN THE HOUSE OF REPRESENTATIVES Kennedy has already spoken out by telling Mr. Penn began his film career as a child the Associated Press that Bush’s budget pro- Tuesday, February 14, 2006 actor in the 1970’s. His performances in more posal ‘‘shortchanges our competitiveness, Ms. LINDA T. SA´ NCHEZ of California. Mr. than forty films captured the hearts of shortchanges our opportunity, and short- Speaker, I rise today to recognize Mr. James moviegoers and earned the respect and admi- changes our future.’’ P. Hoffa for his strong leadership and commit- ration of both colleagues and critics. In 1996, f ment to working families. Mr. Penn won a Venice Film Festival Award for Best Supporting Actor for his performance NEIL BORTZ HONORED AS A As the only son of James R. Hoffa, former in the ‘‘The Funeral.’’ He also was nominated GREAT LIVING CINCINNATIAN General President of the International Brother- hood of Teamsters, Mr. Hoffa grew up on for an Independent Spirit Award and a Genie HON. JEAN SCHMIDT picket lines and in union meetings. James P. Award. Hoffa became a Teamster member himself on Mr. Speaker, please join me in honor and OF OHIO his 18th birthday when his father swore him in. remembrance of Christopher Penn, whose IN THE HOUSE OF REPRESENTATIVES As a young Teamster, Hoffa worked as a la- young life was framed by family, friends and Tuesday, February 14, 2006 borer in Detroit and Alaska, loading and un- his exceptional artistic dedication. I offer my Mrs. SCHMIDT. Mr. Speaker, I rise today to loading freight from ships, driving trucks and deepest condolences to his mother and father, honor Neil Bortz, a residential and commercial buses and operating heavy equipment. Leo and Eileen; to his brothers, Michael and developer, community leader, philanthropist, At Michigan State University, Hoffa played Sean; to his sisters-in-law, Aimee and Robin; and visionary, who will be formally honored as football for legendary Coach Duffy Daugherty and to his many extended family members a Great Living Cincinnatian on February 16 by and graduated with a degree in Economics. and friends. Mr. Penn’s gentle spirit and kind the Greater Cincinnati Chamber of Commerce. He went on to receive his Law degree from heart will live on forever within the hearts of The Chamber has bestowed this award on the University of Michigan, and worked as a his family and friends, and he will be remem- distinguished members of the community an- Teamster attorney from 1968 through 1993. bered always by his adoring audience. nually since 1967. Recipients of this pres- From 1993 to 1998, Hoffa worked at Michigan tigious award are chosen on the basis of pro- Joint Council 43. f fessional achievement; community service; In 1999 Hoffa was elected General Presi- leadership; compassion; and vision. Past hon- dent of the International Brotherhood of Team- RECOGNIZING LOCAL SOLDIERS orees have included Neil Armstrong, Dr. Albert sters. Under his leadership, Teamsters are FOR THEIR SERVICE TO THIS Sabin and Charles Scripps. winning industry-leading contracts, engaging in NATION Mr. Bortz built his career on an uphill chal- contract enforcement and organizing thou- lenge: launching the Mount Adams renais- sands of new members. HON. BRIAN HIGGINS sance in the early 1960s as a founding partner The Union’s renewed commitment to polit- in Towne Properties before going on to de- ical action includes DRIVING America’s Fu- OF NEW YORK velop properties across Cincinnati, Dayton, ture, a new initiative that encourages and sup- IN THE HOUSE OF REPRESENTATIVES Lexington and Florida. He has made countless ports Teamster members running for political Tuesday, February 14, 2006 improvements to our community and raised office. This effort will ensure even more Team- the quality of life for many in our region. ster influence in state and national govern- Mr. HIGGINS. Mr. Speaker, I stand here In addition to sparking the rebirth of the pic- ment. today to express gratitude to a number of sol- turesque, hilltop neighborhood of Cincinnati’s James P. Hoffa has spent a lifetime pre- diers from Western New York who have re- Mount Adams, Mr. Bortz also helped lead the paring for the challenge of running the Team- cently completed a tour of duty where they housing renaissance in downtown Cincinnati sters Union. He knows, first-hand, what Team- fought heroically on behalf of the United with several award-winning residential devel- sters can accomplish when they work to- States of America. opments. His most recent projects include res- gether. He is determined to lead a Union that In particular, I would like to recognize SGT idential properties along the Ohio River. Mr. is a credit to its proud history. Benn, SSG Benson, SGT Carr, SFC Collins, Bortz has also made an impact on our area by Mr. Speaker and distinguished colleagues, MAJ Dukes, SSG Hendricks, SSG Jindra, creating great places to live, work and shop in please join me in honoring Mr. James P. Hoffa SGT Kulesz, SSG LaBuda, SSG Lemay, SFC the Cincinnati suburbs. for his life’s work in building better lives for our Mr. Bortz has been active in many arts, civic Liberatore, SFC Press, SSG Printup, SPC families, our communities and our country. Santiago and SFC Schuler, just a few of our and philanthropic activities, including serving f as founding chair of the Walnut Hills High local heroes who selflessly put their lives on School Alumni Foundation, which recently IN HONOR AND REMEMBRANCE OF the line to protect and improve the lives of completed a new Arts & Sciences wing. Other CHRISTOPHER PENN those in this country and others worldwide. boards include Cincinnati Art Museum, Cin- These decorated men and women have cinnati Equity Fund, National Conference of HON. DENNIS J. KUCINICH demonstrated supreme courage and commit- ment through their call to duty and fight for lib- Christians and Jews, Reds Hall of Fame, Advi- OF OHIO erty. Their valiant efforts are the reason why sory Board to the Cincinnati Park Board, Jew- IN THE HOUSE OF REPRESENTATIVES ish Federation of Cincinnati, Playhouse in the we continue to be the ‘‘land of the free and Park, the Harvard Club of Cincinnati, the Tuesday, February 14, 2006 the home of the brave.’’ Greater Cincinnati Convention and Visitors Bu- Mr. KUCINICH. Mr. Speaker, I rise today in Mr. Speaker, on behalf of the residents of reau and Cincinnati Country Day School. honor and remembrance of Christopher Penn, the 27th Congressional District and all Ameri- Among his many honors include the first Uni- cherished son, brother, brother-in-law, uncle cans I wish to extend my sincerest apprecia- versity of Cincinnati Distinguished Service and friend. Mr. Penn’s insightful cinematic per- tion to these courageous and noble soldiers. Award, Cincinnati Region Entrepreneur of the formances reflected the human condition with Their service and sacrifices help protect the Year, and National Conference of Christian subtle power, in a style that ranged from safety and freedoms that make this Nation and Jews Outstanding Citizen Award. comedic and sublime to rage and despair. His great.

VerDate Aug 31 2005 06:31 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00008 Fmt 0626 Sfmt 9920 E:\CR\FM\A14FE8.030 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS February 14, 2006 CONGRESSIONAL RECORD — Extensions of Remarks E137 DR. MYRTIS POWELL HONORED AS Jr., was a vice president at Procter & Gamble Chicago is home to many culturally and eth- A GREAT LIVING CINCINNATIAN and a community leader. She has one daugh- nically based communities, and Korea Town is ter, three stepchildren and five grandchildren. one of the most thriving and influential areas HON. JEAN SCHMIDT All of us in the Cincinnati area congratulate in our city. Anchored on Lawrence Avenue, Dr. Myrtis Powell on being named a Great Liv- local businesses both serve and showcase the OF OHIO ing Cincinnatian. Korean community and its heritage. The resi- IN THE HOUSE OF REPRESENTATIVES f dents of this neighborhood have played a Tuesday, February 14, 2006 large role in its recent revitalization, boosting PERSONAL EXPLANATION civic pride as the neighborhood has flourished. Mrs. SCHMIDT. Mr. Speaker, I rise today to honor Myrtis Powell, Ph.D., an educator, civic Korea Town is home to many Korean res- leader and community activist, who will be for- HON. BILL SHUSTER taurants, merchants, and bars popular among both residents of and visitors to Chicago. The mally honored as a Great Living Cincinnatian OF PENNSYLVANIA area also serves as the hub for Chicago’s on February 16 by the Greater Cincinnati IN THE HOUSE OF REPRESENTATIVES Chamber of Commerce. communication among the Korean-American Tuesday, February 14, 2006 community, as it boasts Korean television and The Chamber has bestowed this award on radio stations, newspaper and magazine distinguished members of the community an- Mr. SHUSTER. Mr. Speaker, On Wednes- headquarters, and other businesses that cater nually since 1967. Recipients of this pres- day, February 8, 2006 on the Motion to In- to the growing number of Koreans and Ko- tigious award are chosen on the basis of pro- struct Conferees regarding the Tax Relief Ex- rean-Americans in Chicago. fessional achievement; community service; tension Reconciliation Act (H.R. 4297) I meant leadership; compassion; and vision. Past hon- to vote ‘‘No’’ on the motion but inadvertently Recently, the Illinois Department of Trans- orees have included Neil Armstrong, Dr. Albert voted ‘‘Yes.’’ portation put up a designation marker on Chi- cago’s John F. Kennedy Expressway to show Sabin and Charles Scripps. f the way to Korea Town. This sign will lead The eldest of 14 children, Dr. Powell was CELEBRATING THE ANNIVERSARY visitors to a symbol of over 40 years of hard born in Evergreen, Alabama, where she OF THE ‘‘BLUE & GOLD’’ WITH work of the Korean American community, as earned her high school degree when she was CUB SCOUT PACK 890 well as the many successes of immigrant just 16 years old. With a quest for knowledge communities in Chicago and across the coun- and a passion for learning, Dr. Powell’s life try. has been defined by her distinguished career HON. BRIAN HIGGINS Korea Town is one of the neighborhoods in education. OF NEW YORK that make Chicago great, boasting some of Dr. Powell moved to Cincinnati in 1955 to IN THE HOUSE OF REPRESENTATIVES the city’s wonderful opportunities for dining, live with her aunt. While working full time in Tuesday, February 14, 2006 shopping and family-friendly recreation. Last various secretarial and clerical positions, she year, both the Chicago City Council and the Il- climbed the ladder of higher education by tak- Mr. HIGGINS. Mr. Speaker, it is with great linois General Assembly passed resolutions ing evening and part-time classes at the Uni- pleasure that I recognize the young men from honoring the cultural heritage of Korea Town versity of Cincinnati. In 1969, she earned a Cub Scout Pack 890 from Woodlawn, New and the contributions of Chicago’s Korean bachelor’s degree in Administrative Manage- York as they celebrate the traditions and con- community, and I am proud to represent ment; in 1974, she received a master’s degree tributions of the Boy Scouts of America on Korea Town and many Korean-Americans in in Sociology; and in 1978, earned a doctorate this, the 76th anniversary of Cub Scouting. the U.S. House of Representatives. in Sociology and Higher Education Administra- Since 1910 Cub Scouts have embraced Mr. Speaker, I ask you to join me in rec- tion. Dr. Powell also holds a certificate in Ex- their motto ‘‘Do Your Best’’ and promoted the ognition of the rich cultural heritage of Chi- ecutive Management from the Harvard Busi- values of: citizenship, compassion, coopera- cago’s Korea Town, and honor the many con- ness School. tion, courage, faith, health, honesty, persever- tributions of Chicago’s Korean-American com- Throughout her life, Dr. Powell has blazed a ance, positive attitude, resourcefulness, re- munity. trail for women and African-Americans. She is spect, and responsibility among its member- the first African-American to be an associate ship. f Today we have more than 885,000 Cub dean at the University of Cincinnati; the first PERSONAL EXPLANATION African-American to hold an upper manage- Scouts across America, learning valuable life ment position at Miami University, where dur- lessons through the scouting program, who ing her tenure she improved the student af- will be the next generation of leaders. HON. LOIS CAPPS fairs office and increased the minority commu- On Sunday, February 12, 2006 Pack 890 OF CALIFORNIA nity on campus; and the first African-American will celebrate the Anniversary of Scouting with IN THE HOUSE OF REPRESENTATIVES a ‘‘Blue & Gold’’ dinner; blue representing to serve as a program officer at the Edna Tuesday, February 14, 2006 McConnell Clark Foundation in New York City. truth, spirituality, steadfast loyalty and the sky She recently retired from her post as Presi- above and gold which stands for warm sun- Mrs. CAPPS. Mr. Speaker, I was not able to dent and CEO of the Cincinnati Youth Col- light, good cheer and happiness. be present for the following rollcall votes and laborative, an organization that provides youth Mr. Speaker, thank you for the opportunity would like the record to reflect that I would employment, mentoring, and tutoring for those to recognize Cub Scout Pack 890, whose have voted as follows: in need. members have learned at a very young age Rollcall No. 5—‘‘yes.’’ Dr. Powell remains active in the community, the importance of teamwork and giving back Rollcall No. 6—‘‘yes.’’ and serves on the boards of Mayerson Acad- to one’s community. We should be proud Rollcall No. 7—‘‘yes.’’ emy, Bethesda Hospital Inc., Union Central knowing they are this Nation’s future. f Life, the Center for Holocaust and Humanity f Education, Art Links, CET, and the Greater PERSONAL EXPLANATION Cincinnati Foundation. She has received many HONORING THE COMMUNITY OF honors, including designation as a Cincinnati CHICAGO’S KOREA TOWN HON. LYNN C. WOOLSEY Enquirer Woman of the Year, Talbot House OF CALIFORNIA Community Service Award, Glorying the Lion HON. RAHM EMANUEL IN THE HOUSE OF REPRESENTATIVES Awards from the Urban League, Miami’s OF ILLINOIS Tuesday, February 14, 2006 Alumni Association A.K. Morris Award, the IN THE HOUSE OF REPRESENTATIVES YWCA Career Achievement Award, the Bea- Ms. WOOLSEY. Mr. Speaker, I was un- con of Light Award from Lighthouse Youth Tuesday, February 14, 2006 avoidably detained and therefore unable to Services, and the Joseph A. Hall Award from Mr. EMANUEL. Mr. Speaker, I rise today in vote on rollcall votes 5, 6, and 7. Had I been the United Way and Community Chest. recognition of the achievements of the Korea present, I would have voted ‘‘aye’’ on rollcall Dr. Powell resides in the Cincinnati suburb Town area of Chicago’s 5th Congressional vote 5, ‘‘aye’’ on rollcall vote 6 and ‘‘aye’’ on of Amberly. Her late husband, Lavatus Powell District. rollcall vote 7.

VerDate Aug 31 2005 07:05 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00009 Fmt 0626 Sfmt 0634 E:\CR\FM\A14FE8.035 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS E138 CONGRESSIONAL RECORD — Extensions of Remarks February 14, 2006 SERGEANT FIRST CLASS JOHN D. ards from the family members and friends of Following the drop of atomic bombs in MORTON Sergeant Wehrly. Japan in 1945, Swede’s unit was the first to In response to the emotionally charged and set foot in the country of Japan. They served HON. BEN CHANDLER widespread attention this incident and other as the Honor Guard for GEN Douglas Mac- similar protests brought to the State, Illinois OF KENTUCKY Arthur during his arrival in Japan. Lieutenant Governor, Pat Quinn, proposed a IN THE HOUSE OF REPRESENTATIVES Following the war, Swede returned home new law preventing protests at funeral serv- and married his sweetheart Hope, and to- Tuesday, February 14, 2006 ices throughout the State. The Let Them Rest gether they raised four sons, D.L. Junior, Wil- Mr. CHANDLER. Mr. Speaker, I rise today in Peace Act prohibits protests within a 300- liam Craig, James Mark, and Jeffrey Charles. to honor an American hero. SFC John D. Mor- foot zone around any funeral or memorial in Il- Jeffery served 4 years in the United States Air ton made the ultimate sacrifice when he gave linois from 30 minutes before a service until Force. his life in Afghanistan while supporting Oper- 30 minutes after. ‘‘No grieving military family Swede has been actively involved in cere- ation Enduring Freedom. John was not only a should be subjected to vile epithets and signs monies marking the anniversaries of World courageous soldier, but a dearly loved father, at the funeral service of their loved one who War II events. He went to France for the 50th brother, son and friend. It is with heartfelt sad- has made the ultimate sacrifice for our coun- anniversary of D-Day in June 1994 and made ness and my deepest sympathies that I stand try,’’ Quinn said in a recent press release. a jump with several other WWII survivors. Ad- before you and pay homage to a true de- ‘‘This legislation strikes an important balance ditionally he made jumps in Russia and Aus- fender of freedom. between the First Amendment religious rights tralia in 1995 in ceremonies commemorating As a senior at Powell County High School, of families to bury their dead with reverence the 50th anniversary of V-EDay. SFC John Morton felt the call of duty and en- and the expression rights of those seeking to Swede’s favorite phrase that he says to listed in the United States Army. His service to harass mourners at a funeral service.’’ himself daily is ‘‘They gave their tomorrows for our country sent him all over the world—So- I wholeheartedly support free speech and our todays.’’ He doesn’t know who to attribute malia, Haiti, Iraq and Afghanistan. He was as- the right of every American to exercise that this quote to, but he states that it always signed to the 74th Infantry Detachment (Long right. I also strongly believe the rights of fami- makes him think of the cemeteries full of vet- Range Surveillance), 173rd Airborne Brigade lies privately mourning the loss of loved ones erans who died and were buried far from based in Vicenza, Italy. are violated and the contributions of our fallen home. They had bravely fought and died for On December 15, 2005, John’s patrol was military heroes are belittled when funerals are our freedoms. on a mission in the mountainous area around targeted for picketing and other public dem- Today I am proud to honor Swede for his Kandahar, Afghanistan when they were con- onstrations. Picketing of funerals only cause courage, patriotism, and service to our Nation. fronted by Taliban fighters. John suffered a emotional disturbance and distress to grieving He helped protect our democracy and kept our fatal wound to the chest. On December 28, families, which is why I support the Lieutenant homeland safe by placing his life on the line. 2005, SFC John Morton was laid to rest at Ar- Governor’s proposal. The Let Them Rest in Swede truly is the embodiment of all the val- lington National Cemetery. Peace Act allows family members to peace- ues that have molded America into the great John had a strong commitment to his coun- fully mourn while preserving free speech. Nation it is today. try and to the uniform that he wore. He be- Under the Lieutenant Governor’s law, people Mr. Speaker, we maintain the blessings of lieved in his mission in Afghanistan and in the can still protest, they just have to do it from our freedoms only because we have citizens war in Iraq. Along with being an American sol- 300 feet away. like Swede Reyman who are willing to fight to I commend the students of Knox College for dier, John was a beloved father and husband. defend them for us. It is for these reasons the decency they showed the family and It is with grief, sadness and humility that I Swede deserves the very highest praise and friends of Sergeant Wehrly by peacefully and thank John’s parents and two sisters. I also deep appreciation from the residents of Colo- silently creating a barrier between them and wish to thank John’s wife, Sarah, and his rado and from this esteemed body. the hateful, painful words of the protesters. I three children Joshua, Scarlette and Olivia for hope their actions help bring further attention f making the ultimate sacrifice. to this issue so we can better honor our men John’s death is a great loss to the state of HONORING PETER M. AYLWARD and women in uniform, while continuing to up- Kentucky, to our country, but most of all, to hold our treasured first amendment rights. the entire Morton family. I know in my heart HON. GEORGE RADANOVICH f that SFC John Morton will always be remem- OF CALIFORNIA bered as an American hero. TRIBUTE TO A TRUE AMERICAN IN THE HOUSE OF REPRESENTATIVES f HERO, DURWARD LEE ‘‘SWEDE’’ Tuesday, February 14, 2006 REYMAN PROTESTS AT MILITARY Mr. RADANOVICH. Mr. Speaker I rise today FUNERALS to honor a great soldier, a great husband, a HON. MARILYN N. MUSGRAVE great father and a great American—soon-to-be OF COLORADO BG Peter M. Aylward. HON. LANE EVANS IN THE HOUSE OF REPRESENTATIVES OF ILLINOIS This Friday, February 17, 2006, my good Tuesday, February 14, 2006 IN THE HOUSE OF REPRESENTATIVES friend COL Peter Aylward will be promoted to Mrs. MUSGRAVE. Mr. Speaker, I rise today the rank of brigadier general. Peter is currently Tuesday, February 14, 2006 to honor a true American hero, Durward Lee serving as the joint staff and deputy director Mr. EVANS. Mr. Speaker, approximately ‘‘Swede’’ Reyman. Swede quit high school a for Anti-Terrorism, Force Protection and 138,000 troops are serving in Iraq and hun- week after the attack on Pearl Harbor in 1941, Homeland Defense. Peter has served our dreds of thousands more are stationed at at the age of 18. He volunteered to join the country in many ways including being a mem- bases all over the world. These men and Army Air Corps to protect and defend the ber of the White House Task Force for Dis- women bravely volunteered to serve their country he dearly loves. aster Reduction and Tsunami Warning and country and fight to preserve the democratic After serving in various locations in the Planning and led the DOD Pandemic Influenza ideals we as Americans hold dear. It is be- United States he was trained for Arctic Search Task Force for the Assistant Secretary of De- cause of them and the sacrifices they make, and Rescue and was sent to serve 1 year in fense for Homeland Defense. I rise today to bring attention to a very serious northern Quebec, Canada, where he was re- As 1 of 11 children, Peter is a Massachu- issue. sponsible for driving sled dogs. Upon returning setts native who began his illustrious military On a rainy November day in my district, a to the States he volunteered for the para- career in 1976 when he enlisted in the 1/26 group of protesters gathered at the funeral of troops and was assigned to the Army Para- Cavalry Squadron as a reconnaissance spe- SGT Kyle Wehrly—the first resident of Gales- chute Infantry. He completed jump training in cialist. Peter earned multiple degrees from the burg, IL to die in Iraq. During the funeral, they February of 1945 in Fort Benning, GA. Swede University of Massachusetts, Lowell, a mas- shouted cruel, hateful words at the mourners. was then sent to the Pacific as part of the ters from the Marine Corp University and a Upon hearing the protesters might show up at 11th Airborne, 188th Parachute Infantry Regi- master’s degree from the National Defense the funeral, a group of students from Knox ment, 3rd Battalion where he made a combat University. He has served in a variety of com- College in Galesburg organized to silently jump on Luzon Island in the Philippines. mand and staff assignments and won multiple stand in front of the protesters, raising their Swede made a total of seven jumps during his honors and medals including the Defense Su- umbrellas to block the hateful words and plac- time in the military. perior Service Medal, Legion of Merit, Defense

VerDate Aug 31 2005 06:31 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00010 Fmt 0626 Sfmt 9920 E:\CR\FM\A14FE8.041 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS February 14, 2006 CONGRESSIONAL RECORD — Extensions of Remarks E139 Meritorious Service Medal, the Meritorious until the age of 97. She would be the first to TRIBUTE TO REVEREND DR. C.W. Service Medal with three oak leaf clusters, the tell you that age is irrelevant, after all, while in NEWSOME Joint Service Commendation Medal with one her sixties she belly danced, remarried and oak leaf cluster, the Army Commendation launched her artistic career. She always told HON. GEORGE MILLER Medal with one silver and one bronze oak leaf her children, ‘‘be creative, never stop dream- OF CALIFORNIA clusters, the Joint Service Achievement Medal ing, and help others.’’ She was an amazing IN THE HOUSE OF REPRESENTATIVES with one oak leaf cluster, the Army Achieve- woman who will be remembered to those who Tuesday, February 14, 2006 ment Medal with one oak leaf cluster and loved her and to the many whose lives she many other awards. touched. Mr. GEORGE MILLER of California. Mr. Mr. Speaker, we are fortunate to have such Speaker, it was with overwhelming sadness that I learned of the passing of The Reverend a great and dedicated man protecting our f country. It is truly an honor to publicly salute Dr. C.W. Newsome last week. For more than BG Peter M. Aylward on the House floor today HONORING CAPTAIN KEVIN C. 40 years my friend and mentor Rev. Charles Newsome served as a moral compass for our and bestow our heartfelt thanks for his tireless MURRAY community. For more than 40 years he was efforts on behalf of all Americans. I thank our spiritual rock and for more than 40 years Peter, his wife Sandra and their sons, James HON. DAVID WU he was our seeker of justice. There was no and Jeremy, for all the time they have given OF OREGON question in his mind or ours why God put him up as a family to make sure our country is IN THE HOUSE OF REPRESENTATIVES on this earth. Rev. Charles Newsome came to safe. We sleep easier because of Peter’s Tuesday, February 14, 2006 us to lead the way in the struggle for eco- commitment and dedication, and I congratu- nomic and social justice and to heal the scars late him on his recent promotion. Mr. WU. Mr. Speaker, I rise today to honor of racism on our country and our community. f CAPT Kevin C. Murray, who lost his life while And he did. With strength and trust given to TRIBUTE TO GRAYCE BODGEN performing his duties as a Columbia River bar him by the people he served, he fought for the ARNOLD pilot on the night of January 9, 2006. rights of all people to seek opportunity and to Where the Columbia River meets the Pacific be free from bigotry. He understood that there ´ Ocean is spectacularly beautiful, yet it is also was no other way for us to build a lasting inte- HON. RAUL M. GRIJALVA the worst river bar passage in North America. grated and strong community. Year after year OF ARIZONA Columbia River bar pilots have steered ves- our friend led the efforts for better housing, IN THE HOUSE OF REPRESENTATIVES sels in the lower Columbia across the treach- schools, jobs, and health care for everyone. Tuesday, February 14, 2006 erous bar since 1846, making it one of the So very often he took his church, North Rich- Mr. GRIJALVA. Mr. Speaker, Grayce oldest businesses in the Pacific Northwest. mond Missionary Baptist Church, and its Bodgen Arnold was originally from Philadel- This shallow bar has claimed some 2,000 ves- members into the forefront of these battles. phia, PA, and arrived in Arizona through her sels and 700 lives since the early 19th cen- Rev. Newsome knew the strength of the church depended on its involvement with the husband, John Patton Arnold, who had been tury. daily needs of its members and our commu- commissioned by Popular Mechanics and the During a transfer back to the pilot boat Chi- nity. Over these many years I have enjoyed Triple A Automotive Association to publish the nook, in heavy winter seas, Captain Murray, our conversations, treasured his friendship, first motor tourist guide of Mexico in the mid 50, a resident of Ilwaco, WA, and Boothbay, and highly valued his counsel on a wide vari- 1950’s. The family, then including their first ME, was thrown into the ocean waters. De- spite the valiant efforts of his crew, Captain ety of issues. two children, moved to Nogales, AZ. The fam- Reverend Newsome was born on June 15, ily later moved to settle in Tucson, where their Murray succumbed to the frigid ocean tem- peratures. He is survived by his wife, Lori 1924, in Brenham, Texas. Prior to his commit- third child, Janie, was born. ment to the faith ministry, he served valiantly Throughout this time Grayce had been de- Stetson Murray, and his mother, Phyllis Mur- ray, of Boothbay Harbor, ME. as a U.S. Marine, in the Segregated Corps, veloping her cooking and artistic talent. While fighting against Nazi fascism in the European she lived in Doylestown, PA, her neighbor Captain Murray was a seasoned, experi- ence scholar of the seas. He began his career Theater of World War II. An injury forced him Sara Lee was a constant presence in to leave the service and he eventually came to Grayce’s kitchen, sampling her cooking. At the working on towing vessels, towing semi-sub- mersible oil rigs in and out of the Gulf of Mex- Richmond, continuing to support our country’s same time she was also working on her artis- effort by working in the shipyards. His partici- ico. He later captained a 700-foot oil tanker, tic talent, she worked with famed Tucson artist pation in shipbuilding and that of the countless the Blue Ridge, and held an unlimited mas- Ted DeGrazia at his studio. In addition to her African Americans who migrated west during ter’s license allowing him to captain any size artistic and cooking talents, she also devel- the war, led Richmond to become one of the vessel in any waters in the world. He had ex- oped her business skills. leading industrial hubs of the world. Today his tensive experience in the waters from Alaska Through the years, her business ventures legacy and that of all of the men and women to San Francisco, resulting in his recruitment brought her in contact with many people, in- who built our country’s warships has been me- by the Columbia River Bar Pilots in 2004. Fel- cluding film stars Faye Dunaway and Joanna morialized as Rosie the Riveter National His- low Columbia River bar pilots remember Cap- Cassidy, and then Governor George W. Bush. toric Park. Also it was at this time that her designs for tain Murray as a wonderful person, a strong, With an insatiable appetite for learning, Rev- Patagonia’s first three postcards came out, silent type, with a quiet, hidden sense of erend Newsome attended Contra Costa Col- displaying her civic involvement to promote humor. lege for his AA Degree, the University of Cali- Patagonia as a tourist destination. I extend my heartfelt condolences to Lori, fornia Berkeley for his undergraduate work, In 1976, Grayce’s son, Dr. John David Ar- his wife; Phyllis, his mother; and all of his fam- Bishop College in Dallas to study theology, nold, bought the Miner’s Old Home in Pata- ily and friends. This tragic drowning, the first and received his Doctorate from Reeds Chris- gonia, which was built in 1905. At the time, loss of a Columbia River bar pilot since 1973, tian College—Western Theology Seminary in the house was not in good condition, but was highlights the danger that these brave pilots Los Angeles. Following the completion of his remodeled to be made fit for living, and is face daily in navigating the Columbia River studies, he began his life’s work. Rev. where Grayce lived until the end of her life. bar, also known as the ‘‘graveyard of the Pa- Newsome’s ministry has included Organizing This is also where Grayce Gift and Candle cific’’. The bar pilots navigate cruise ships, Pastor of Holy Jerusalem Missionary Baptist Shop operated from for almost three decades. U.S. Navy vessels, foreign vessels and cargo Church in Richmond, and heading the Com- Grayce’s artistic talents are displayed in her vessels, inbound and outbound on the Colum- munity Baptist Church in Santa Rosa, Cali- shop, which is more than a shop, instead it is bia River through the bar. Their skills and fornia. In 1966 he took on the pastoral duties more like part museum and art gallery. work are crucial aspects of the economic at North Richmond Baptist Missionary Church. Grayce’s artistic collections include her award health of the deepwater ports of Oregon and Building on his congregation’s stature in the winning sand cast candle dioramas, creative Washington and the livelihood of the Pacific community as the first ‘‘Negro Baptist Church masks and one of her greatest sculptures, her Northwest. of Contra Costa County’’, Rev. Newsome con- rendition of the Tarahumara man squatting in Mr. Speaker, I rise not only to honor Cap- tinued to break new ground in the name of so- contemplation in traditional dress. tain Murray, but to honor all of his fellow bar cial justice. He led laborers to fight for equality Grayce was inspiring; she was so full of life, pilots on the Columbia River, who stand as in the workplace and led families to fight for physically active and ran her own business their own class of heroes of the sea. safety in our schools and on our streets.

VerDate Aug 31 2005 06:31 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00011 Fmt 0626 Sfmt 9920 E:\CR\FM\A14FE8.045 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS E140 CONGRESSIONAL RECORD — Extensions of Remarks February 14, 2006 It was just two years ago that I came to this HONORING FARRAGUT HIGH HONORING JOAN CARR ON Well to mark Reverend Newsome’s retirement SCHOOL FOOTBALL COACH EDDIE RECEIVING THE ATHENA AWARD after 38 extraordinary years as Pastor of North COURTNEY UPON RECEIVING Richmond Missionary Baptist Church. This THE INAUGURAL COURTNEY HON. THADDEUS G. McCOTTER congregation under his leadership has be- COURAGE AWARD OF MICHIGAN come a beacon of hope in a community strug- IN THE HOUSE OF REPRESENTATIVES gling against issues of social and economic in- justice. HON. JOHN J. DUNCAN, JR. Tuesday, February 14, 2006 To Reverend Newsome’s wife, Alice, his OF TENNESSEE Mr. MCCOTTER. Mr. Speaker, I rise today daughters Patricia Cooper and Redonda IN THE HOUSE OF REPRESENTATIVES to acknowledge and honor Joan Carr, who is Newsome, and his son, Reverend Charles the recipient of the ATHENA award, which Newsome, I extend my heartfelt condolences. Tuesday, February 14, 2006 honors outstanding women for their leader- Their loss is shared not only by those who Mr. DUNCAN. Mr. Speaker, on January ship. knew Reverend Newsome but by all who have 18th of this year, Farragut High School Head Since her retirement from the nursing pro- been touched by the work he has done. We Football Coach Eddie Courtney was named fession, Joan has selflessly served as a volun- will be forever grateful for his skill, strength the first recipient of the Eddie Courtney Cour- teer for WWCSD Health & Welfare Advisory and courage as he sought to make our com- age Award named in his honor. for the Wayne Westland School District Family Resource Center. She has led numerous com- munity and our country a better place for all of This ceremony took place at the end of a munity projects, including the Red Wagon Lit- us. We are so grateful to his family and his grueling and testing season for Coach eracy Project, Kindergarten Backpack Project church for sharing him with us for so many Courtney and his Admiral football team. Coach and Literacy Family Fun Night. Dedicated to years. We celebrate his life without sorrow be- Courtney was diagnosed with Hodgkin’s dis- her community, she has tirelessly worked to cause we know God has much need of him. ease last spring and despite months of radi- ‘‘What does the Lord require of us—to do identify the needs of families within the Wayne ation and chemotherapy, he guided the Admi- justice, to love kindness and to walk humbly Westland School District, and is considered a rals to the Class 5A quarterfinals and an 11– with thy God’’—Micah 6. mentor and role model to women in her com- 3 record. Throughout his intensive treatment, munity. f he never missed a team function, including Mr. Speaker, Joan Carr has forged a legacy summer conditioning workouts, cutting the HONORING MEREDITH KIESEL of commitment and dedication to helping fami- grass and lining the field before games and lies in the Cities of Wayne and Westland. I scrimmages. HON. STEVE ISRAEL ask my colleagues to join me today in hon- Mr. Speaker, I ask the readers of the CON- OF NEW YORK oring Joan, and I congratulate her upon re- GRESSIONAL RECORD and my fellow colleagues IN THE HOUSE OF REPRESENTATIVES ceiving this honor. to join me in honoring the courage, strength f Tuesday, February 14, 2006 and leadership of Farragut High School Head Mr. ISRAEL. Mr. Speaker, I rise today to Football Coach Eddie Courtney. I also include HONORING THE WOODVILLE honor the accomplishment of Meredith Kiesel, the following news article printed in the Knox- FIGHTING EAGLES 2A BASEBALL a 7th grader from Northport, NY, who won first ville News-Sentinel. TEXAS STATE CHAMPIONS place in the World Hunger Essay Contest. Ms. [From the Knoxville News-Sentinel, Jan. 19, Kiesel understands our country’s need for a 2006] HON. KEVIN BRADY plan to eliminate hunger and food insecurity. COURTNEY AWARD STANDS FOR COURAGE OF TEXAS SHOULD FOOD BEABASIC HUMAN RIGHT? (By Drew Edwards) IN THE HOUSE OF REPRESENTATIVES (By Meredith Kiesel) Tuesday, February 14, 2006 I think that food should be a basic human Farragut High School football coach Eddie right. In our society we have human rights. Courtney was named the first recipient and Mr. BRADY of Texas. Mr. Speaker, I rise Some of these rights include freedom of namesake of the Courage Award at the today to honor the Woodville High School speech, education, the right to vote, to think PrepXtra football awards banquet Wednes- Fighting Eagles on their 2005 2A Texas State freely, and to practice and believe in any re- day night in the Wolf Kaplan Center inside Neyland Stadium. Baseball Championship. Woodville, Texas, is ligion. These rights make our country great a wonderful community in Tyler County and a Courtney was diagnosed with Hodgkin’s and strong. Food is used to give us energy, proud part of the Eighth Congressional Dis- and to keep us focused on what we are doing. disease last spring and guided the Admirals When a person misses a meal they become to the Class 5A quarterfinals and an 11–3 trict. For any community in America a state very tired and hungry. record. Throughout months of radiation and championship is quite an accomplishment and Every person who has food can contribute chemotherapy, the 52-year-old coach never one worth honoring. to local food pantries and to food drives. If missed a team function, including summer While the young men and their coaches every person contributed, many people would conditioning workouts. worked their way through each level of com- have food. If a local grocery store donated He continued to perform his other duties, petition, everyone in the community rallied be- extra food to a food drive or a shelter it including cutting the grass and lining the hind the team driving all over the state to would help people who cannot afford food. field. cheer them on to a State Championship vic- People who cannot get a job suffer because ‘‘It started with (my faith) and having they do not have money to buy food. If food tory. great friends,’’ Courtney said. ‘‘And I’m here Team starting pitcher Casey Beck was was a human right these people could get because of the game of football. As a player, food to support themselves and their fami- it was always just suck-it-up and go.’’ named most valuable player at the State Championship Game. The team clinched the lies. Farragut linebacker Nick Reveiz said Many people who cannot afford food do not Courtney’s attitude rubbed off on the team. championship with a victory over Holliday High have enough energy to do ordinary things. School located near Wichita Falls, Texas, by a Kids who do not have enough food in their ‘‘He’s a man, and that’s the true definition of a man,’’ Reveiz told the News Sentinel in score of 2 to 1. In a story that belongs in a cli- bodies cannot study and learn and cannot do matic Hollywood sports movie, Beck, after sports or activities that are in their school. November. ‘‘He takes what life gives him. He They cannot do it because they do not have doesn’t whine about anything. That’s one throwing 134 pitches in his team’s semifinal enough energy. Even with eight hours they person that no matter what comes his way, victory the day before was called in as a relief will not have the energy without food. If no matter how unfair it is, no matter what pitcher in the last two innings of the champion- food was a human right they could go out for happens, he’s not going to complain about ship game. sports teams or play in their local neighbor- anything. He’s going to take what’s given The Austin American Statesman quoted and make the best out of it.’’ hood parks and study and become successful. Beck as saying ‘‘My arm was really weak. Food is very important for our bodies and Courtney finished his radiation treatments When I was warming up between innings, I last month and will visit doctors once every minds. It helps us to think and do regular ac- had nothing. Coach came over and asked me tivities. Without proper nutrients our bodies two months for the next year. cannot function properly. These are very im- The Eddie Courtney Courage Award will be if I had one inning left, and I told them I’d give portant reasons as to why food is very im- given each year to a player, coach or con- it my all. Then that became two innings.’’ portant. The whole world should have food as tributor to local high school football who Mr. Speaker, there is something else that a basic human right. It would help make the has shown the spirit to face fear or danger makes the people of Tyler County and the City world a happier and healthier place to live. with confidence, resolution and dignity. of Woodville stand out. These families and

VerDate Aug 31 2005 06:31 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00012 Fmt 0626 Sfmt 9920 E:\CR\FM\A14FE8.048 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS February 14, 2006 CONGRESSIONAL RECORD — Extensions of Remarks E141 businesses first opened their homes to Hurri- Mr. Speaker, Mrs. King has been described grams and public education are critical to cane Katrina victims, then to Rita evacuees as quiet, steady, and courageous and while all maintaining and increasing the number of or- from other areas of the state. Following their of that may be true let it be noted to add gans donated each year. awesome display of compassion and gen- steadfast and certainly noble. Health and Human Services, HHS, has al- erosity, Hurricane Rita with 150 mph winds, Mrs. King was a serious thinker, a com- ready implemented initiatives to raise the pub- unexpectedly made Woodville a direct target. mitted activist, a talented musician and an out- lic awareness of this vital act of giving life. The In light of the recent Gulf Coast hurricane spoken woman whose influence and activism Gift of Life Congressional Medal Act is a great season, and specifically Hurricane Rita that extended well beyond the career of her fa- opportunity for us to work with HHS to draw devastated Tyler County and its surrounding mous husband. attention to this life-saving issue. It sends a communities, the team’s victory has helped Mrs. King undoubtedly became a symbol of clear message that donating one’s organs is keep this tight knit community even stronger. racial equality for all Americans. For a woman an act that should receive the profound re- Casey Beck’s performance in the champion- of her stature, rearing four little children when spect of our Nation. ship game represents the attitude and ‘‘get it there was civil unrest, and to have suffered The Gift of Life Congressional Medal Act es- done’’ spirit of the people of Tyler County. Re- the loss of her husband sent a clear message tablishes a nonprofit fund to be used to de- gardless of how tired they are they are going to this Nation that the movement was too pow- sign, produce, and distribute a Congressional to give it one or two more innings down the erful to stop and must go on. commemorative medal to organ donors or to a stretch, face down one hurricane and then an- Just like the late Mrs. Jacqueline Kennedy, surviving family member. Enactment of this other. Mrs. Coretta Scott King showed us how to legislation would have no cost to the Federal The team was coached on to victory by meet personal crisis with courage, and then Government. The Treasury Department would Head Coach Neil Hennigan and Varsity Assist- how to transcend crisis with victory. provide a small initial loan for start-up pur- ant Coaches Joe Wilroy, Beau Burnett and Although, I had never had the pleasure of poses, which would be fully repaid. Subse- Reggie Williams. The members of the cham- meeting Mrs. King, I too share her husband’s quently, the program would be self-sufficient pionship team included: Casey Beck, Braeden vision of peace and brotherhood as a steady through charitable donations. Riley, Reese Winters, Jordan O’Neal, Zack theme that should be heard all across this Na- This is non-controversial, non-partisan legis- Rigby, Daniel Spivey, Jess Conner, Trevor tion. lation to increase the rate of organ donation. Rainey, Aaron Hicks, Evan Fortenberry, Logan Mr. Speaker, history has a way of placing I ask my colleagues to help bring an end to Alec, Justin Kirkpatrick, Allen Mitchum, Jacoby women like Coretta Scott King in the shadows transplant waiting lists and recognize the enor- Williams, Josh Kirkpatrick, Chad Prince, Joel of their powerful husbands but it is time we re- mous faith and courage displayed by organ Gentz, Brian MacGinnis, Paul Price, Cullen member them as more than civil-rights-move- donors and their families. This bill honors Williams, and Jack Hickman. ment wives and widows. these brave acts, while publicizing the critical These young men and their coaches have I once heard someone say that behind need for increased organ donation. I urge swift together accomplished so much and made a every good man stands a good woman, but I passage of the Gift of Life Congressional community and region so proud. Mr. Speaker, say to you and to this Nation that beside every Medal Act. I hope the House of Representatives will join great man stands an even greater woman. f me in honoring the Fighting Eagles and the Mr. Speaker, her’s was a remarkable life, community they represent. and along the way she helped improve the COMMEMORATION OF THE VISIT OF THE BLACKWATER COMMU- f lives of millions. While we mourn her lose, we must celebrate her legacy—now recognized NITY SCHOOL DELEGATION TO HONORING THE LIFE AND ACCOM- with that of her husband. WASHINGTON, DC, FEBRUARY 14, PLISHMENTS OF MRS. CORETTA 2006 f SCOTT KING INTRODUCTION OF THE GIFT OF HON. RAU´ L M. GRIJALVA SPEECH OF LIFE CONGRESSIONAL MEDAL OF ARIZONA ACT OF 2006 HON. C.A. DUTCH RUPPERSBERGER IN THE HOUSE OF REPRESENTATIVES OF MARYLAND Tuesday, February 14, 2006 IN THE HOUSE OF REPRESENTATIVES HON. FORTNEY PETE STARK OF CALIFORNIA Mr. GRIJALVA. Mr. Speaker, I rise today to Wednesday, February 1, 2006 IN THE HOUSE OF REPRESENTATIVES recognize a delegation from my district visiting Mr. RUPPERSBERGER. Mr. Speaker, as our Nation’s Capital. This delegation rep- we celebrate the start of Black History Month Tuesday, February 14, 2006 resents the Blackwater Community School on with recognizing the many, many great deeds Mr. STARK. Mr. Speaker, I rise today to in- the Gila River Indian Reservation, who belong of African Americans, we also mourn the loss troduce the ‘‘Gift of Life Congressional Medal to the Akimel O’Otham. of an icon for people of all races—Mrs. Act of 2006.’’ This legislation creates a Con- I would like to acknowledge Henry Pino, Coretta Scott King. Mrs. King was one of our gressional commemorative medal for organ president of the Blackwater Community School most influential black woman leaders in the donors and their families, recognizing the Board; board member Francisco Osife; board world today. brave and selfless act of organ donation. I secretary Peggy Winchester; and the super- The ‘‘first lady’’ of the civil rights movement want to thank Senator FRIST, a heart and lung intendent and principal of the school, Jac- was born Coretta Scott in Heiberger, Alabama. transplant surgeon himself, for introducing quelyn Power. Through the talent and commit- She was raised on the family farm of her par- companion legislation in the Senate. ment of these individuals, the students of ents where she was exposed to the injustices There is a serious shortage of available and Blackwater are in great hands. Blackwater of a segregated society. suitable organs for donation. Over 90,000 peo- Community School has a motto—‘‘Quality Mrs. King excelled at her studies, particu- ple are currently waiting for an organ trans- Education Begins Here.’’ It was evident in our larly music, and was valedictorian of her grad- plant; over 2,200 of these are children under discussion today that these educators and ad- uating class at Lincoln High School. She grad- age 18. Over 30,000 new patients are added ministrators live up to such an inspiring motto uated in 1945 and received a scholarship to to the waiting list each year. Because of low every day. Antioch College in Yellow Springs, Ohio. donor rates, in 2004 alone over 6,150 people Blackwater Community School was built in As an undergraduate, she took an active in- died for lack of a suitable organ. An estimated 1939, it was the first operated by the Bureau terest in the civil rights movement; she joined 12,000 people die each year that meet the cri- of Indian Affairs in Arizona, and still educates the Antioch chapter of the NAACP, and the teria for organ donation. Less than half actu- children and families in its historic, refurbished college’s Race Relations and Civil Liberties ally become organ donors. Recognition of buildings. The children are in grades kinder- Committees. She graduated from Antioch with these gifts of life would publicize the critical garten through second, and a charter ex- a B.A. in music and education and won a need to increase organ donation. panded the student enrollment to third and scholarship to study concert singing at New Physicians can now successfully transplant fourth grades. England Conservatory of Music in Boston, kidneys, lungs, pancreases, intestine, livers, Blackwater has led the way as the highest Massachusetts. and hearts with considerable success. But, performing school determined by federal and In Boston she met a young theology stu- without expanded efforts to increase organ do- state officials. Most recently, the National In- dent, Martin Luther King, Jr., and her life was nation, the supply of suitable organs will con- dian School Board Association honored the changed forever. tinue to lag behind the need. Incentive pro- school with its coveted 4Cs Award.

VerDate Aug 31 2005 07:05 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00013 Fmt 0626 Sfmt 9920 E:\CR\FM\A14FE8.052 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS E142 CONGRESSIONAL RECORD — Extensions of Remarks February 14, 2006 The school also has one of the most suc- ordained into the priesthood, and on Sep- sions a person could choose. Dr. Lichtman is cessful family literacy programs in the nation tember 1, 1969, he was appointed pastor of at the top of his profession, which his students that educates pre-school children and their the Saints Constantine and Helen parish in have always known, and others realize as parents together. The program is called Family Gary, Indiana. Since arriving in Northwest Indi- well. He has been honored by the New York and Child Education (FACE), the FACE pro- ana, the graciousness and generosity of Fa- State Assembly, the Nassau County Legisla- gram at Blackwater has earned an enviable ther Constantinides has touched many lives. ture, the Town of Hempstead Supervisor and reputation as a proud member of the National In 1971, Father Constantinides was instru- the Town Board, and recently was named the Adult Education Honor Society. mental in the construction of the Hellenic Cul- Siemens Foundation’s top mentor among I would like to offer my congratulations to tural Center in Merrillville, Indiana, as well as those who helped 1,600 high school students the distinguished delegation from Blackwater in the design and construction of the Saints enter its 2005 national competition. In typical Community School for the tremendous job that Constantine and Helen Cathedral, one of the Dr. Lichtman style, he has donated the they are doing on the Gila River Indian Res- ten largest Orthodox churches in the Amer- $15,000 that comes with the award to pur- ervation. icas, in 1975. During his years of service, Fa- chase more equipment for the school’s re- f ther Constantinides has also become deeply search room. involved in the work of Hospice of the Calumet Dr. Lichtman earned his Pharm.D. in 1990, CONGRATULATIONS TO FATHER Area. specializing in toxicology and worked for sev- EVAGORAS CONSTANTINIDES In addition to the many contributions within eral years as a manufacturing pharmacist. He his own parish, Father Constantinides has was a science research coordinator and HON. PETER J. VISCLOSKY committed himself to improving the commu- teacher at Massapequa High School and Hill- OF INDIANA nity, the nation, and the world. To name just crest High School prior to making his way to IN THE HOUSE OF REPRESENTATIVES a few of the appointments and accolades be- Uniondale. Tuesday, February 14, 2006 stowed upon Father Constantinides throughout Dr. Lichtman’s program is one of only in his years of service, he was honored with the three in the nation, other than in some magnet Mr. VISCLOSKY. Mr. Speaker, it is with office of Protopresbyter in 1972, and he schools, where students do most of their re- great sincerity and admiration that I wish to served as the Treasurer and member of the search in a school lab rather than at a hospital congratulate Father Evagoras Constantinides National Presbyters Council from 1970–1974, or university. In just six short years, Dr. on the 50th Anniversary of his ordination into and again from 1980–1982. He received the Lichtman has increased the number of re- the Holy Priesthood. Father Constantinides will Greek Orthodox Archdiocese of North and search students from zero to over 80. His stu- be recognized at a banquet in his honor at the South America Service Award and Gold Cross dents, mostly minorities, have long credited Saints Constantine and Helen Greek Orthodox in 1976 for his struggles and lobbying activi- Dr. Lichtman not just for his encouragement Cathedral on Sunday, February 26, 2006, ties for the liberation of invaded Cyprus. Fa- and mentoring in the classroom but also for which will also be a celebration of the 60th ther Constantinides has shared his immense teaching life lessons that can be used and ap- Wedding Anniversary of Father Evagoras and wisdom and faith in various countries, includ- plied throughout their lives. his wife, Presvytera Mary. ing Russia, Kenya, Uganda, and India. Re- The students develop a full research pro- Father Constantinides was born in Lapithos, markably, Father Constantinides has even posal by conducting a complete literature Cyprus in 1918 and was educated in his vil- found time to author four Sunday school search and designing the methodology, which lage through his second year of high school, books for children and has translated six Or- is then approved by Dr. Lichtman. Students where he graduated with the Gold Medal thodox Service books from Greek to English. implement the projects in the school’s re- Award for academic excellence. He entered Since his retirement in June 1995, Father search lab, present their results at science Athens College in 1932, where he was accept- Constantinides has devoted his time to the Or- competitions and propose and carry out fur- ed on a yearly scholarship with the school’s thodox Christian Mission Center through writ- ther studies. The students’ projects have re- science section. Father Constantinides had no ing, lecturing, and substituting at churches in sulted in practical applications that have been trouble maintaining his scholarship for six the Chicago Diocese, but he has also been implemented, such as reduction of storm years, and he graduated with honors while re- able to devote much of his time to his loving water runoff contaminants. Many of his stu- ceiving the Delta Public Speaking Prize and wife, Mary, and their four children. Presvytera dents have been nominated for science the English Language Prize. This dedication Mary has stood by her husband’s side for the awards and have placed in various science and commitment to his studies exemplifies the past 60 years. I am sure Father fairs and competitions, which is a testament to hard work on which Father Constantinides Constantinides would agree that the unwaver- Dr. Lichtman. prides himself. ing support of his loving wife has been a Mr. Speaker, I applaud Dr. Lichtman, and all After finishing college in Greece, Father major factor in the many achievements he has of our teachers, for their wonderful work, and Constantinides traveled to the United States to reached in his lifetime. Father Evagoras and their contribution to our leaders of tomorrow. continue his studies and broaden his experi- Presvytera Mary are a shining example of true f ences. In 1938, he enrolled at Fenn College, dedication to their vows and each other. which is now Cleveland State University, Mr. Speaker, at this time I ask that you and IN HONOR OF JOSEPH STROUD where he studied civil engineering. During his my other distinguished colleagues join me in four years at the University, he served as a thanking Father Evagoras Constantinides for HON. SAM FARR Greek teacher and as the Hellenic Board of his contributions to the members of his parish, OF CALIFORNIA Education Secretary for the Greek Orthodox the citizens of Northwest Indiana, and his fifty IN THE HOUSE OF REPRESENTATIVES Community of the Annunciation of Cleveland, years of service to people throughout the Tuesday, February 14, 2006 Ohio. Although he enjoyed his time in Cleve- world. I also ask that you join me in congratu- land, his final year was interrupted by World lating Father Evagoras and Presvytera Mary Mr. FARR. Mr. Speaker, I rise today to con- War II. As a British subject, Father Constantinides on their 60th wedding anniver- gratulate Joseph Stroud, a Californian poet Constantinides entered the Canadian Army as sary. Their love for each other and for all man- that has received the prestigious Witter a private in the fall of 1942. After completing kind is truly an inspiration to us all, and I am Bynner fellowship award. The fellowship, fund- his basic training, he was enrolled in the offi- proud to be their representative in Congress. ed by the Witter Bynner Foundation for Poetry, cer training program, from which he graduated was developed in 1972 to promote the art of f as a 2nd Lieutenant in the Engineer Corps poetry and encourage grants that illuminate with proficiency in explosives, mines, and HONORING DR. PAUL LICHTMAN the positive effects that poetry has on society. demolitions. His outstanding ability as a mili- As part of the fellowship, the two recipients tary officer, coupled with his excellent intellect, HON. CAROLYN McCARTHY are asked to organize a local poetry event as allowed Father Constantinides the opportunity OF NEW YORK well as attend a poetry reading at the Library to work for the United States Central Intel- IN THE HOUSE OF REPRESENTATIVES of Congress. Stroud has contributed tremen- ligence Group translating Japanese docu- dously to the art, and it is fitting that we men- ments and the Greek Constitution into English. Tuesday, February 14, 2006 tion him today. After being discharged in 1947, Father Mrs. MCCARTHY. Mr. Speaker, I rise today He began his distinguished career as a pro- Constantinides returned to the United States to honor Dr. Paul Lichtman, a science teacher fessor of poetry and English at Cabrillo Col- and began extensively studying theology. On from Uniondale High School. Teaching is one lege in 1969 and for 35 years inspired the March 11, 1956, Father Constantinides was of the most honorable and important profes- minds of many young and eager writers. Yet

VerDate Aug 31 2005 06:31 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00014 Fmt 0626 Sfmt 9920 E:\CR\FM\A14FE8.055 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS February 14, 2006 CONGRESSIONAL RECORD — Extensions of Remarks E143 it was not until late that his literary prowess States relates to the entire Korean peninsula, brothers, Marvin, Zach and Wallace Phillips, exploded on the cultural scene with the publi- both North and South. Those who pursue re- and sister, Margaret Wagner Worrell. Sur- cation of his third book of poetry Below Cold union for the sake of their families are reflect- vivors include his wife of 60 years, Buena Mae Phillips (whom he loved most in the Mountain. Stroud, who resides in Santa Cruz, ing basic American values and rendering a world); two daughters, Margaret ‘‘Cookie’’ California and Shay Creek in the Sierra Ne- service to the imperative of peaceful relations Tyndall and Michelle Kellam, and husband, vada, has also been active in the social diffu- between peoples of the world. Chris; two sons, Charles C. Phillips Jr. and sion of poetry locally while co-hosting KUSP’s f wife, Patricia, and William L. Phillips; one ‘‘Poetry Show’’. sister, Geraldine Graham of Florence, S.C.; Stroud’s work encompasses various HONORING CHARLES C. PHILLIPS eight grandchildren; five great-grandchildren typologies of poetry from short-line form to lyr- and numerous nieces and nephews whom he ical prose and rhymes. His work takes readers HON. JO ANN DAVIS held very dear. He was provided loving care in his remaining days by his loving family, with him on his travels and describes topics OF VIRGINIA most notably his son-in-law G. Christopher IN THE HOUSE OF REPRESENTATIVES ranging from landscapes to commonplace ob- Kellam and his grandson Caleb J. Kellam. jects in the finest detail or the greatest ab- Tuesday, February 14, 2006 Funeral services will be held at 11 a.m. Sat- straction. Mrs. JO ANN DAVIS of Virginia. Mr. Speak- urday, Dec. 31, in the World Outreach Wor- Stroud has completed works of great social ship Center, 1233 Shields Road, Newport er, I rise today to remember the life of one of and cultural importance and it is important that News, VA 23608–2062, with Pastor Bob Collins we recognize him for his contribution to the my distinguished constituents, Charles Clifford officiating. The family suggests that memo- arts. Together with the Witter Bynner Founda- Phillips of Newport News, Virginia. Born in rials may be made to the World Outreach tion and members of the United States Con- January of 1921, Charlie grew up in Friend- Worship Center. gress, I welcome Mr. Stroud to our nation’s ship, South Carolina, where he, like many f rural Americans of that time, worked on his fa- capital and join in congratulating him for his HONORING JACK FARIS success and thank him for his contributions to ther’s farm. Anxious to see the world and to American literature. serve his country, he left South Carolina at the age of 17 and joined the Army Air Corps. After f HON. MARSHA BLACKBURN the entry of the United States into World War OF TENNESSEE COMMENDING THE LAUNCH OF II, Charlie was sent to the Pacific Theater as IN THE HOUSE OF REPRESENTATIVES SAEMSORI a bomber turret gunner in the famous Red Raiders Bomber Group (22d Bomb Group, 2d Tuesday, February 14, 2006 HON. JAMES A. LEACH Squadron). Like so many others of his genera- Mrs. BLACKBURN. Mr. Speaker, America tion, he asked no questions and he made no OF IOWA was built by entrepreneurs. We wouldn’t be complaints. He fought and won a war that the powerhouse we are without the millions of IN THE HOUSE OF REPRESENTATIVES guaranteed the security of every American people who had an idea, grew that idea, and Tuesday, February 14, 2006 and hundreds of millions of others. turned that idea into a business. In America Mr. LEACH. Mr. Speaker, I want to take this With his job done abroad, he returned to small business owners create the most jobs opportunity to congratulate the Eugene Bell America to begin a new life and new family. and drive economic growth. Foundation, the Korean American Coalition of He met the love of his life, Buena Mae Today I want to honor someone who has the Midwest, and other involved churches, Spurling, in a restaurant in Maryville, Ten- fought for those entrepreneurs. As president community leaders and organizations on the nessee. They eventually moved to Newport and CEO of the National Federation of Inde- occasion of their launch of the Saemsori initia- News, Virginia in 1955, where he joined the pendent Business, Jack Faris has been a tire- tive last week. By seeking to promote reunion C&O Railroad and worked until his retirement less advocate on behalf of small business between Korean-Americans and their family 28 years later. He and his beloved wife of 60 owners. He understands the pressures facing members in North Korea, it is a project with years built a family of upstanding, hardworking our entrepreneurs and he has fought to be potential ramifications that are both personal Americans who carry his love of country and certain America doesn’t stifle the freedom that and global. his belief in God. gives so many the opportunity to go out and As Members of this body are well aware, This country lost a great American on De- build a business. Jack Faris believes in there currently exist many challenging issues cember 23, 2005, just 2 days before Christ- dreaming big dreams and turning those into between the United States and North Korea. mas and 2 weeks before his 85th birthday. reality. In the current context, the most reasonable Charlie closed his eyes for the last time sur- Jack knows our prosperity and our freedom place to begin seeking a more positive dy- rounded by his family. I am told that he left are tied to a thriving small business commu- namic is in the field of people-to-people rela- this world as he lived in it, with dignity and nity and he’s never shied away from making tion. And the most natural and urgent way to honor. certain policymakers understand that fact. seek those improvements is to pursue the re- I extend to the family of Charles Clifford Even though Jack is retiring as president union of Korean families. Although detailed Phillips my deepest sympathy and my prayers and CEO of the NFIB, we know he’ll continue statistics are not available, an estimated quar- during this difficult time. I am sure you are so to support our small businesses. We thank ter of the 1.5 to 2 million strong Korean-Amer- very proud of him. It is obvious through his him for his work on behalf of such a worthy ican community have familial and historical service to our country during World War II and cause. his love for his family, that he was truly a ties to the North. The pains of separation are f felt acutely by many Americans. great man. One of the most unique aspects of our Na- I would also like to enter into the RECORD HONORING AMY JARED AND HER tion is that we are a society of immigrants with the obituary of Charles C. Phillips. DEDICATION TO THE ARTS ties to many parts of the world. Traditionally, OBITUARY OF CHARLES C. PHILLIPS second and third generation American citizens NEWPORT NEWS.—Mr. Charles C. Phillips, HON. BART GORDON 84, a native of Marion, S.C., a resident of have taken the lead in advising Congress and OF TENNESSEE the executive branch on ways and means of Newport News since 1955, went home to be with the Lord on Dec. 23, 2005. He was a IN THE HOUSE OF REPRESENTATIVES forging closer, more mutually beneficial rela- Christian and Veteran of WWII, serving in Tuesday, February 14, 2006 tions with their ancestral homelands, and in fo- the U.S. Army Air Corps, 22 Bomb Group cusing American concern on the cir- (BG), 2nd Squadron, ‘‘Robinson’s Red Raid- Mr. GORDON. Mr. Speaker, I rise today to cumstances and challenges facing their former ers’’ in the Pacific Theatre. The 22 BG origi- honor Amy Jared for her dedication to art edu- countrymen. In our unique, citizen-centered nated out of Langley Air Field in 1941 and cation. Amy, a native of Cookeville, Ten- democracy, leadership on initiatives eventually was deployed to the Pacific one day after nessee, developed an art outreach program undertaken by any administration often comes Pearl Harbor. He received several decora- that was recently honored with the Nation’s from outside government. tions and the unit had several Presidential highest award for community arts programs. citations, participating in numerous cam- For this reason, I believe that the launch of paigns as a bomber turret gunner. Mr. Phil- As Art Education Manager at the Philadel- Saemsori is an appropriate occasion to reflect lips retired from C&O Railroad after 28 years phia Museum of Art, Amy developed a Latino on the singular role that Korean-American of service. He was the son of the late Outreach Program that was named one of 15 churches, civic organizations, and business Chalmers Corcellus and Susan Wall Phillips finalists in the 2005 Coming Up Taller Awards. leaders are playing in the way that the United of S.C. He was preceded in death by his Since 1998, the awards have recognized the

VerDate Aug 31 2005 07:13 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00015 Fmt 0626 Sfmt 9920 E:\CR\FM\A14FE8.058 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS E144 CONGRESSIONAL RECORD — Extensions of Remarks February 14, 2006 Nation’s outstanding community arts and hu- another sweetheart deal that the administra- terms. During her tenure, the quality of service manities programs. The Coming Up Taller tion is giving to big oil. Across the country, and the reputation of the local union increased Awards are a project of the President’s Com- Americans can’t afford roses and chocolates markedly. Although she turned over the reins mittee on the Arts and the Humanities in part- because they are getting squeezed at the of leadership to spend more time with her nership with the Institute of Museum and Li- pump for every last nickel and dime they family, whenever the union needed her she brary Services, the National Endowment for have—meanwhile the Bush administration is rose to the occasion. When organized labor the Arts and the National Endowment for the giving its sweethearts in the oil industry $7 bil- fell on hard times and employees were re- Humanities. lion that rightfully belongs to America’s tax- quired to work longer hours for less pay, the During her time with the Philadelphia Mu- payers. local union sought out Yoggi’s help. She re- seum of Art, Amy also initiated all of the stu- In the 1990’s and again last year, the Re- turned as Office Manager, and served as Sec- dio-based outreach programs with Philadel- publican Congress voted to suspend royalty retary and then as Treasurer. phia’s public schools, expanded the museum’s payments by oil and gas companies for oil and Her leadership was tested in the mid-nine- afterschool studio art classes and developed gas produced in Federal waters in the Gulf of ties when postal management attempted to weekend art classes. In 1998, her art edu- Mexico. change the definition of a special delivery cation programs received an Award of Excel- Now, the President’s own budget directs the messenger and in the process deprive work- lence in Programming from the American As- Department of the Interior to allow companies ers of their right to be represented by the sociation of Museums. For five consecutive to pump nearly $65 billion worth of oil and nat- union of their choice. During this crisis, she years, her children’s studio programs were ural gas without paying royalties. Apparently sprang into action, helped confront manage- honored with a Best of Philly award. the administration doesn’t feel that the record ment, and enlisted the support of the national Amy recently left the museum to return to profits being reported by Exxon Mobil and the union. She then entered into a test case to re- teaching art in schools. I have no doubt that other big oil companies are high enough. The solve the issue through arbitration. Acting in she will do an outstanding job. Her students Bush policy of subsidizing wealthy oil compa- concert with the national union, an agreement certainly will be fortunate to have such a tal- nies has proven to be wildly effective in boost- was reached with management that all mes- ented and engaging teacher. ing oil company profits, but it continues to sengers would remain, as stated in the law, in I congratulate Amy for being recognized as harm American consumers. It is time for this their union of choice. This was a great victory a Coming Up Taller Award finalist, and I wish administration to stop letting oil companies for postal workers. her all the best in her future endeavors. make the greatest profits we have ever seen Yoggi settled into a job as Mailing Require- f in the history of the world while not paying ment Clerk advising postal customers about their bills to the American public. the best way to make and prepare their mail- INTRODUCTION OF THE ROYALTY The ‘‘Royalty Relief for American Con- ings. In 2001, the Postal Service recognized RELIEF FOR AMERICAN CON- sumers Act of 2006’’ will ensure that the Yoggi with its Diversity Award, an honor justly SUMERS ACT OF 2006 American taxpayers receive the money they deserved. Although she has now retired from are owed by the oil companies in the future. the UPS, Yoggi has not retired from her quest HON. EDWARD J. MARKEY Our legislation will help reverse the Bush ad- to help postal workers. In recognition of her OF MASSACHUSETTS ministration’s policy to ‘‘Leave No Oil Com- passion and ability to help postal workers, the IN THE HOUSE OF REPRESENTATIVES pany Behind’’ and instead provide relief to the APWU has asked Yoggi to conduct seminars Tuesday, February 14, 2006 American consumers who are currently footing on retirement and to help other workers appro- the bill. priately prepare for that transition. Not surpris- Mr. MARKEY. Mr. Speaker, the American f ingly, she has taken on this challenge with people expect their leaders to articulate a vi- zeal and will, no doubt, continue to make a sion and a comprehensive strategy for Amer- TRIBUTE TO YOGGI RILEY tremendous impact. ica’s energy future. They expect us to be fo- Yoggi is a very special woman. In addition cused on reducing the high energy costs to HON. HOWARD L. BERMAN to all she has done on behalf of postal work- American consumers and completely elimi- OF CALIFORNIA ers, she has also devoted herself to raising a nating our dependence on expensive and IN THE HOUSE OF REPRESENTATIVES family. She is married to Lester Riley and they volatile Middle Eastern oil. In contrast, several Tuesday, February 14, 2006 have two children and six grandchildren. The weeks ago the New York Times released an time and energy she gave to coaching chil- investigative report revealing that payments Mr. BERMAN. Mr. Speaker, I rise to pay dren’s baseball and t-ball was so well known made by energy companies are not keeping tribute to my long time friend, Yoggi Riley, in that the community renamed the playing field up with the skyrocketing cost of energy. recognition of her February 3, 2006, retirement across from her home after her. Today, the Times, revealed that big oil compa- from the U.S. Postal Service. Ms. Riley had a Mr. Speaker, I ask my colleagues to join me nies stand to receive future royalty giveaways long and distinguished career with the Postal in saluting Yoggi Riley, congratulating her on from the Bush administration of nearly $7 bil- Service—almost 38 years. She proved herself her retirement, and wishing her success in all lion. This royalty relief for Exxon Mobil, BP, a leader through her tireless work with the her future endeavors. and Chevron Texaco comes at a time when Postal Workers Union. Throughout her career f consumers are paying record high energy she helped improve the lives of countless prices. other postal workers through her union serv- TRIBUTE TO BARBARA SUDLER It is time to start providing royalty relief to ice. HORNBY the American public, and to end it for multi- In September 1967, Yoggi began working at national energy companies that just made the Post Office Department as a special deliv- HON. DIANA DeGETTE more profit in one year than any industry in ery messenger. After witnessing the hardships OF COLORADO modern history. experienced by the postal workers on the pick- IN THE HOUSE OF REPRESENTATIVES Today, Representatives MALONEY, MILLER, et lines during the 1970 New York postal WAXMAN, EMANUEL, INSLEE, PALLONE, GRIJALVA workers strike, which spread throughout the Tuesday, February 14, 2006 and I are introducing the ‘‘Royalty Relief for country, she joined the San Fernando Valley Ms. DEGETTE. Mr. Speaker, I would like to American Consumers Act of 2006’’ to ensure Area Local Branch of the American Postal recognize the wonderful life and exceptional that the taxpayers will receive the billions of Workers Union, APWU. This decision not only accomplishments of a remarkable woman. dollars in royalty payments they are owed by changed her life, but because of her tenacity This distinguished citizen possessed an im- the big oil companies as payment to drill on as a union leader, it ultimately impacted the pressive record of civic leadership and invalu- public land. Our legislation would prohibit roy- lives of many others. While her desire to help able service, Her achievements in preserving alty relief on any future oil and gas leases, call fight for and protect the rights of her fellow the heritage of Colorado merit our recognition for a renegotiation of current leases, and pro- employees was kindled by that strike, it has and gratitude, It is to commend this eminent hibit the purchasing of new leases by those continued to burn brightly throughout her ca- citizen that I rise to honor Barbara Sudler companies that refuse to renegotiate. reer. Hornby. Oil companies pay a fraction of the value of Yoggi’s exceptional leadership as a union When we think about the enduring legacy of the oil and gas produced on federal land as a representative became apparent during the Denver and Colorado, we think of Barbara royalty to the Federal Government. However, 1970s. In 1979, she was elected President of Hornby. Her life was an affirmation of our her- on Valentine’s Day, we have learned of yet the local union and ultimately served two itage and its importance to future generations.

VerDate Aug 31 2005 06:31 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00016 Fmt 0626 Sfmt 9920 E:\CR\FM\A14FE8.063 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS February 14, 2006 CONGRESSIONAL RECORD — Extensions of Remarks E145 When we celebrate her life, we celebrate not IN RECOGNITION OF GRENADA’S 32 world stage, new challenges lie ahead in less only the history and edifices she worked so YEARS OF INDEPENDENCE than ideal socio-economic circumstances. diligently to protect, but the stewardship and For one thing the jury is still out on the gains and achievements of the Grenadian conservation of our common cultural heritage, HON. CHARLES B. RANGEL economy, since 1984, as it relates to the im- Barbara Hornby was born in Hawaii to U.S. OF NEW YORK provement of the quality of life of all the Naval Commander Leo Welch and Barbara IN THE HOUSE OF REPRESENTATIVES people. If the mainspring of Grenadian Petrikin Welch in 1925. She graduated from progress, since its independence from Britain Tuesday, February 14, 2006 the University of Colorado in 1944 and during on February 7, 1974, is the country’s com- the remainder of the Second World War, she Mr. RANGEL. Mr. Speaker, I rise today to mand over the forces of production, then its recognize Grenada’s 32 years of independ- history to date is one of sporadic and uneven worked at Ft. Logan, Buckley Field and did re- development mixed with episodes of retro- search for the University of Denver. Six years ence and to enter into the RECORD an article gression. later, she married Denver architect James published by Caribnews chronicling historic From the dominance of British-imposed Sudler II and while working in his architectural challenges faced by the country. I congratulate slavery and colonialism Grenada painfully firm, developed the skills that would serve her Grenadians in their native country, the United moved towards full political independence well in future endeavors. Following the death States and abroad on their perseverance to during the militant epoch of the 1960s and of Mr. Sudler, she married former Denver Post celebrate how far their great nation has come. 1970s. Granted independence under less than Thirty-two years ago, on a momentous Feb- favorable conditions the country took charge senior editor Bill Hornby who shared both her of its own destiny replacing the colonial life and her work. ruary 7, the beautiful country of Grenada master with local elected officials whose ex- Barbara Hornby served as the executive di- achieved its independence from Great Britain. perience in governance was learned from and rector of Historic Denver and later as both di- Since its independence, Grenada—com- at institutions set up by their former mas- rector and president of the Colorado Historical prised of the islands of Grenada, Carriacou ters. In this context therefore Grenadian Society. She supervised the development of and Petit Martihas—has continued to flourish structural forms of today—government, par- as a nation. As the first of the Windward and liament and judiciary—were and are a cari- the four-million dollar Georgetown Loop His- cature of British Westminster democracy toric Mining and Railroad Park. She served on Leeward islands to declare its independence, Grenada obtained its autonomy under the that has failed to adequately provide for in- the Denver Landmark Commission, was vice stitutions and instruments of equality with- chairwoman and trustee of the Colorado His- Grenada United Labour Party government of in the society. torical Foundation and was Colorado’s Historic late Prime Minister Sir Eric Matthew Gairy. It was these spawned social, political and Preservation Officer. In 1995, Colorado Pres- Since the early days of independence, Gre- economic disparities that let to the rise and ervation Inc. honored her with the Dana nada has struggled to find its voice. Despite eventual fall of the regime of Sir Eric Mat- Crawford Award and in 2000, the University of violent power struggles and a U.S.-led inva- thew Gairy [from 1950 to 1979] and the subse- sion, the people of Grenada have overcome quent triumph—and demise—of the Grenada Colorado honored her as Outstanding Alum- Revolution (1979–1983). During the 29-year nus of the Year. strife in order to forge ahead with their par- liamentary democracy. Gairy Regime, Grenada exhibited limited Barbara’s accomplishments affirm that she growth and development, with perhaps the Today, Grenada stands as a spectacular is- was indeed the keeper of our sense of place. sole measure of its progress being the new- land with lush mountains, crystal waterfalls, Through Barbara, we learned to savor the found political consciousness of a hitherto golden beaches and fragrant spice trees that richness, diversity and legacy of our cowed and oppressed people. give the island its epithet ‘‘Isle of Spice’’. It is It was Gairy who bucked the ruling status forbearers, She knew that preserving our his- also a vital trade partner, with significant glob- quo of an alliance in the towns of a mulatto tory gives us roots and an understanding of al exports such as nutmeg, mace, cocoa, ba- upper class, a growing merchant stratum, who we are as Coloradans. She raised aware- nanas, vegetables, and fish. But most impor- and a landed British gentry, oftentimes ab- ness of our unique heritage and taught us to sent from the island. But what started as a tantly what is treasured most by Americans is take responsibility for preservation. She re- populist movement and progressive anti-co- not Grenada’s landscape or exports but the minded us to respect our historic edifices and lonial struggle degenerated into home-gown Grenadians, who we regard with much esteem recognize that they are living monuments for depostism by the early 1970s as Sir Eric ce- as our friends. mented a strangle hold on all parts of future generations. We owe a tremendous Thirty-two years ago this month, Grenada Grenadian society. debt of gratitude to Barbara for the care in did not only put into motion independence, but With each year since indepedence—granted which she protected and preserved our herit- national development and progress as well. during serious internal unrest and political age. William Faulkner said, ‘‘The Past is never turmoil—the Gairy Regime became more and Mr. Speaker, please join me in wishing Gre- dead. It is not even past.’’ When we consider more oppressive, and it was out of these nada continued political and social advance- the life and accomplishments of Barbara socio-economic and political conditions that ment on this very special day marking their Hornby, we see that the past is not dead, that the Grenada Revolution of March 13, 1979 32nd anniversary of self-rule. it enriches the present and gives foundation to materialized. This break in the evolutionary [From the Caribnews, Feb. 7, 2006] chain of political and economic development the future. GRENADA WILL RISE AGAIN ushered in a brief period of unprecedented Our thoughts and our prayers are with Bar- economic growth and development. The basis bara’s children, James Sudler III and Eleanor (By Michael D. Roberts) for this was the ruling New Jewel Move- Sudler and her husband Bill Hornby. Please For the Caribbean island nation of Gre- ment’s suspension of the stultifying and ar- join me in celebrating the life of Barbara nada, Carriacou and Petite Martinique the chaic British-model constitution, an eco- devastation wrought by two powerful hurri- Sudler Hornby, as distinguished citizen. The nomic program of planned development canes has turned back what progress was based on three pillars—the public, private strong leadership she exhibited during her life being made under the Keith Mitchell Admin- and cooperative sectors—a grass-roots type continues to enrich our culture and sustain our istration. And the undulating nature of ac- of participatory democracy, and an overall heritage as Coloradans and Americans. tivities of national development has also policy of national development based along been a major challenge even before Hurri- non-capitalist lines. f canes Ivan and Emily. But successful though the Revolution was, It has been like constantly taking three in economic and political terms, it quickly PERSONAL EXPLANATION steps forward and one backwards in an eerie imploded, self-destructed due to a combina- dance led by the caprices of the inter- tion of immaturity, intolerance to dissenting national global market and the negative ef- view, and a failure to understand that the HON. BARBARA LEE fects of run-away capitalism. Indeed, the political and ideological direction of the much touted benefits of market Revolution did not sit well with a people OF CALIFORNIA globalization have served up its own peculiar long accustomed, or conditioned to accept- IN THE HOUSE OF REPRESENTATIVES and erratic brand of progress now and stag- ing the flawed Westminster model of demo- nation then. Grenada, Carriacou and Petite cratic development as the only way. The Tuesday, February 14, 2006 Martinique now finds itself in serious eco- one-man one vote position was therefore cen- Ms. LEE. Mr. Speaker, on Wednesday, Feb- nomic straights brought on by brutal and tral to the core of the Grenadian view of devastating ‘‘acts of God.’’ democratic rule. ruary 8, 2006, due to urgent personal matters Indeed, these past 32 years have been chal- Still, even the most strident detractors of I missed roll call votes nos. 5, 6, and 7. Had lenging ones for the 120 square mile tri-is- the Grenada Revolution would agree that the I been present, I would have voted ‘‘aye’’ on land Caribbean nation. And as the nation of period 1979–1983 saw unparalleled economic H. Res. 670, H. Res. 657, and the Rangel mo- some 90,000 people plunge into the uncertain- growth and development that has not been tion to instruct on H.R. 4297. ties of a brand new and rapidly redefined equaled or duplicated up to this day. In fact

VerDate Aug 31 2005 06:31 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00017 Fmt 0626 Sfmt 0634 E:\CR\FM\A14FE8.066 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS E146 CONGRESSIONAL RECORD — Extensions of Remarks February 14, 2006 it is safe to conclude that the reversal of the trous results . . . It is also important to en- shared services can reach the vast majority gains of the Grenada Revolution, that began sure that there is a proper context in which of the people and greatly improve the qual- with the interim Government of 1983, and privatization can take place. A competent ity of life. continued with the election of the old Her- executing agency with a qualified staff is bert Blaize New National Party (NNP) in needed, together with the appropriate regu- 1984, ushered in the modern period of latory framework and the necessary safety f Grenadian retrogression. nets to protect displaced workers.’’ Kathy McAfee in her celebrated book So me of these ‘‘disastrous results’’ have RELATING TO CONSIDERATION OF ‘‘Storm Signals—Structural Adjustment and visited Grenada since the start of the pro- S. 1932, DEFICIT REDUCTION ACT Development Alternatives in the Caribbean’’ gram, in particular the perception by the OF 2005 (Oxfam America 1991), in a chapter entitled public that governments have been just sell- ‘‘Grenada: Development by Conquest,’’ ar- ing off, national assets to raise money. In- gues that ‘‘by the fall of 1988, after five years deed, there is little to show for privatization. of US stewardship, almost none of the devel- There are also sound arguments that while HON. LUCILLE ROYBAL-ALLARD opmental goals set by the US had been met. privatization brings a bag of mixed blessings, OF CALIFORNIA Grenada was deeper in debt than at any time in the Grenada context there was and is no in the nation’s past. AID-sponsored efforts to competent and experienced monitoring au- IN THE HOUSE OF REPRESENTATIVES balance the government’s budget had failed. thority to oversee the divestment of state The country’s tax system, after being thor- assets. The upshot is that as a panacea for Tuesday, February 14, 2006 oughly re-designed by US consultants, had Grenada’s economic ills the jury is still out largely collapsed. AID was withholding on the privatization program. Ms. ROYBAL-ALLARD. Mr. Speaker, I rise promised grants to Grenada’s government in And yet the ruling New National Party today in strong opposition to House Resolution an effort to force it to comply with struc- (NNP) government led by Dr. Keith Mitchell 653, the Budget Reconciliation Spending Cuts tural adjustment conditionalities.’’ McAfee cannot be slighted for not demonstrating Act. There are many reasons to vote against says that unemployment was at an all-time some measure of boldness when it comes to high, some 30 percent, and agricultural pro- policy decisions and hard political issues. the bill today, including the massive cuts to ductivity continued its long-term decline, Buffeted and hindered by a hostile world eco- critical programs, such as Medicare, Medicaid, while Grenada’s manufacturing sector re- nomic climate the Government has tried to and child support enforcement. But the uncon- mained small and stagnant. push the Grenadian economy forward with scionable cuts to student aid are reason In 2006 nobody disagrees that agriculture, an admixture of privatization, international Grenada’s economic backbone, is in serious aid (hitherto to 2004 mostly from Taiwan), enough to vote against this bill. trouble and that production for export has re-focussing on tourism, and physical Education has always been—and continues taken a big hit. Moreover, the World Trade infrastructural development. This program to be—the great equalizer in this country. Stu- Organization (WTO) ruling removing the pro- will be one of the key challenges to the gov- tected status for Caribbean bananas in the ernment in the coming years as Hurricanes dent loans in particular have helped to level European market has caused more headaches Ivan and Emily was almost responsible for the playing field for thousands of worthy stu- for the country. Added to this by the year putting the Grenada government into receiv- dents who cannot afford the high cost of a col- 2000 the task of completely destroying all ership. lege education. the hard-won gains of the people during the Overall, if one was to characterize the Grenada Revolution was now completed. progress and development of Grenada, For that reason, it is shocking and dis- Here are a few examples of some of the Carriacou and Petite Martinique these past appointing that over 30 percent of the cuts in structures and other economic and social 32 years, one would have to conclude that it this bill are to student aid programs that help programs that are now extinct that have set has been a period of turbulence mixed with Grenada back for many years. The National brief periods of respite, tranquility and de- our kids afford a college education. To pass Transportation Service (NTS) is no more, velopment. These past 32 years have seen this bill, and cut funding for essential edu- the Marketing and National Importing Board every form of political upheaval and some of cation programs, is to forsake our commitment (MNIB) is a shell of its former self. Post-Rev- the ugliest forms of repression and brutality. to our children’s future and to the future of our olutionary governments allowed about six (6) It is a history that has divided Grenadians country. fully equipped modern fishing trawlers to rot and continues to drive a fundamental wedge and sink to the bottom of the St. George’s in any movement towards national unity and Skyrocketing student loan interest rates and sea rather than utilize them. Grenada no reconciliation. fees, including a new 1 percent ‘‘insurance longer exports eggplants and other crops to For example: the events of October 19, 1983 European markets; the country’s agro-proc- that saw the execution of popular Prime fee’’ on college loans will make it even harder essing plant that canned fruit juices for ex- Minister Maurice Bishop and some members for many parents to send their children to col- port under the Revolution is no more, as is of his Cabinet, that led to the subsequent in- lege and on the road to a better and more the fish processing plant that began to vasion on Grenada on October 25, 1983, is still prosperous life. produce dry salted fish for export. The coffee the salt in the wound for most Grenadians. processing plant in Grenville is now extinct. There is no closure as yet and this will be Mr. Speaker, the passage of this bill will Only the Grenada International Airport re- yet another challenge going forward. shatter the dreams of thousands of students mains because this structure, woefully But if unity has been illusive thus far, and whose only hope for a college education is economic problems further aggravate and under-utllized, cannot be easily physically through the support of federal financial aid. dismantled. create political alliances and divisions, then But what solution did these post 1983 any commentary on the merits, achieve- And it will weaken our country’s future, be- govenments propose for Grenada’s socio-eco- ments, and future of Grenada’s independence cause we will be denied the talents and con- nomic developmnent? The answer for many would lead one to the conclusion that inde- tributions of these students, whose skills we of them was privatization. This process con- pendence is a pipe dream. Right? Wrong. tinues today. According to a leading expert While economic independence is not yet a re- need to compete in our highly skilled global on privatization in the Caribbean, Jamaica’s ality, political independence is a fact of life economy. If we are to remain the greatest and Richard L. Bernal, with the overthrow of the in Grenada. Indeed, without wanting to most powerful nation in the world, we must Maurice Bishop Government in 1983, the new sound cynical, the mistakes made during the educate and develop the talents of all our chil- Government in Grenada committed itself to 32 years of Grenadian independence were privatization. ‘‘By 1992, in response to a made by the, Grenadian people and their dren. weak fiscal situation, Grenada had begun a leaders. And nobody ever said that national Adding to the tragic consequences of this ‘‘self-imposed’’ three-year structural adjust- development, progress and independence bill is that the cuts to Medicare, Medicaid, ment program in which privatization of would be a cakewalk. State Owned Enterprises was an integral In fact, national development is painful, child support enforcement, and student aid do component. In that year, 90 percent of the especially so for a small, agriculturally de- nothing to reduce the shocking 3.4 trillion dol- shares of the National Commercial Bank pendent nation that will never reach critical lars deficit. The President’s cuts to these crit- were sold, with the majority shares going to mass. But these pains are necessary if the ical programs are simply for the purpose of country must move forward because the the Republic Bank of Trinidad and Tobago, giving more tax cuts to the wealthiest 1 per- and 10 percent to Grenadians and others school of hard knocks is where experience is from the Eastern Caribbean,’’ [‘‘Privatiza- gained, and is perhaps the best teacher on cent of our country. tion in the English-speaking Caribbean: An the issue of progress and retrogression—the Mr. Speaker, H. Res. 653 is an ill-conceived twin sisters of development. And Grenada’s Assessment’’] (the Center for Strategic and and misguided bill that endangers the future of International Studies) October 22, 1999]. small size is both a blessing and a curse. Its In the same publication, Bernal noted that size makes for presumably an easier and our children and the future of our country. I ‘‘. . . rapid and extensive divestment with- more efficient governmental structure and urge my colleagues to vote against this bill. out a proper framework can lead to disas- management. With fiscal prudence popular

VerDate Aug 31 2005 06:31 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00018 Fmt 0626 Sfmt 9920 E:\CR\FM\A14FE8.070 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS February 14, 2006 CONGRESSIONAL RECORD — Extensions of Remarks E147 PAYING TRIBUTE TO PVT. JOSHUA the solidarity of the Caribbean. ‘‘His music and was acutely aware of the necessity to deal MICHAEL MORBERG, KILLED lyrics advocated a kind of Black-centered firmly with situations that demanded strong WHILE SERVING HIS COUNTRY Christianity which would ‘free our minds’. Thus action. That did not mean that he advocated IN IRAQ Marley, although born in Jamaica, was a cit- unbridled, confrontational violence but he izen of the Caribbean and Third World,’’ Rob- understood that the poor and oppressed had a duty to resist these things which were part HON. JON C. PORTER erts writes. of ‘‘Babylon.’’ OF NEVADA Mr. Speaker, please join me again in re- membering the legacy of Bob Marley during It is perhaps this prophetic quality that IN THE HOUSE OF REPRESENTATIVES Black History Month. has made Robert Nesta Marley a Third World legend and reggae’s only superstar. So as we Tuesday, February 14, 2006 [From the CARIBNEWS, Feb. 6, 2006] celebrate the anniversary of his birth on Mr. PORTER. Mr. Speaker, I rise today to CELEBRATING THE 61TH EARTH DAY OF February 6, we must remember his passing REGGAE SUPERSTAR ROBERT MARLEY honor the memory of Army Pvt. Joshua Mi- and pay respect to his works. He was, un- chael Morberg, who was killed on Tuesday, (By Michael D. Roberts) doubtedly, Jamaica’s most outstanding am- December 27th 2005, at the age of 20, while Black Ambassador, musical innovator, and bassador and one who yearned for all the serving in Iraq. I recognize him today for his gifted with visionary talents, Bob Marley’s people of the Caribbean to come together. music today speaks volumes about a man dedicated service to this country for the cause His music and lyrics advocated a kind of of freedom in a global community. whose every word and sentence was written with the emancipation of his people in mind. Black-centered Christianity which would Pvt. Joshua Morberg came from a long line And in his own way he identified the prob- ‘‘free our minds.’’ Thus Marley, although of military veterans. His grandfather had been lems and offered solutions to them. That is born in Jamaica, was a citizen of the Carib- in World War II and Korea and he had many why the music of the supreme Rastaman en- bean and Third World. He transcended the other family members who have served in dures to this day. Indeed, the greatness of narrow borders of nations moving with his every military branch. Bob Marley is that his popularity and stay- pulsating music to the world community of As a child Joshua was described as ‘‘curi- ing quality outlasts all the present crop of man. ous’’, always asking questions and desiring to reggae artistes. But Marley was not merely satisfied to gain more knowledge. His uncle stated that he This Black History Month Marley would simply fight for deliverance from ‘‘Babylon’’ have turned 61 years—had he lived. And we in the Western Hemisphere through his could never own a radio because Josh would can only speculate as to what music he always take it apart and never quite put it music and powerful lyrics. He preached re- would have concocted in that fertile and cre- sistance to all forms of oppression. His songs back together again. Growing up he learned to ative mind of his as he ‘‘trod down Babylon.’’ of protest and of agitation composed after play the violin and in high school he learned To my mind the supreme Rastaman still exposure to the inequalities prevalent in Ja- sings getting better with each passing day. to speak Japanese. maican and Caribbean society have been In the dancehalls of Brooklyn, the Caribbean Ever since he was a little boy Joshua want- adopted by people in many countries strug- basements of Canada, or the open tropical ed to be a soldier. So, in 2004, he graduated gling for, what his talented compatriot, early from Washoe High School to join the spaces of the Caribbean, Bob Marley’s time- less music lives on. His works continue to Peter Tosh and fellow Wailer, called ‘‘equal military. Joshua had only been in Iraq for a give new hope to the world’s oppressed and rights and justice.’’ few weeks. On Tuesday, December 27th, solace to the downtrodden as he urges Black Marley’s contribution to Jamaican and while on duty in Baghdad, another patrol came people to ‘‘Get up, Stand up, Stand up for world musical culture still stands out as a under attack. Despite the clear danger, Josh- your rights.’’ monumental achievement of human endeav- ua led the effort to help his fellow soldiers. A versatile entertainer, he was singer, or. It was he more than anyone else who Tragically, Joshua was killed, along with an- songwriter, expert guitarist and above all a took the indigenous musical art form of a other soldier, when an improvised explosive pragmatic rastaman. Robert Nesta Marley Caribbean island, framed and packaged it to was born in St. Ann, Jamaica, on February 6, device was detonated. suit international tastes, and then sold it to 1945. He died May 11, 1981. Bob Marley, as he the world. Today the world still sings ‘‘these For his brave service and individual act of is popularly known the world over, was the courage Joshua was awarded a Bronze Star songs of freedom,’’ as the Dreadlocked One individual most responsible for taking demanded. Medal with Valor device, the Purple Heart and reggae out of Jamaica and making it inter- a Good Conduct Medal. national. Let us always remember that his music Joshua is survived by his parents, sister With uncanny vision Marley altered indig- and his works were aimed, in the fashion of Grayce and ‘‘The Rat Pack’’, who had been enous traditional Jamaican roots music another great Jamaican, Marcus Mosiah Garvey, at liberating his race. Marley’s ten- his lifelong friends. making it more acceptable to the inter- national market and consumer. Curiously, ure on this earth was a potent reminder that Mr. Speaker, I appreciate the opportunity I before he would win over his critics, and Ja- Black people are still not yet free. His cre- have today, to recognize and honor Pvt. Josh- maica music purists, Marley came under ative genius accomplished what most inter- ua Morberg in front of my colleagues on the heavy fire, in those early days because it was national politicians dream of achieving and floor of the House. felt that he was prostituting the roots he did it by being just—Bob Marley, humble f reggae music. and sincere. Along with his group the Wailers, that he There is something for everybody in the COMMEMORATION OF BOB formed in 1964, and which included two other works of Bob Marley. Some folks love him great reggae leaders in their own right— MARLEY’S BIRTHDAY for his upbeat, uptempo music like ‘‘One Peter Tosh and Bunny Livingston, known Love’’ Jamaica’s national song; others like worldwide as Bunny Wailer—Bob Marley was HON. CHARLES B. RANGEL the great popularizer of reggae. It was he and his spiritual side found in such works as OF NEW YORK the Wailers who infused this ‘‘island music’’ ‘‘Redemption Song’’ and ‘‘Three Little Birds.’’ And still there are many who cling IN THE HOUSE OF REPRESENTATIVES with American pop and rock, making it at- to the masterful works of protest music in Tuesday, February 14, 2006 tractive to all music consumers and which gave it its enduring, lasting, ‘‘always fresh’’ songs like ‘‘Bad Card’’ and ‘‘Ambush In The Mr. RANGEL. Mr. Speaker, I rise to remem- quality. Night.’’ ber once again the timeless reggae musician But even when Marley sung so-called No matter what people remember Bob Bob Marley and to enter into the RECORD an lovey-dovey ballads and drew the ire of the Marley for, his works ‘‘Idureth for Iver.’’ So eloquent CARIBNEWS commentary by Mi- ‘‘rude boys’’ of Jamaica’s slums and garrison ‘‘get up, stand up, stand up for your rights,’’ communities, his message was inherently and listen to the Supreme Rastaman who chael Roberts commemorating what would and basically political: he preached an end to have been the singer’s 61st birthday February trod into Babylon ‘‘inna this generation’’— racial oppression and urged Blacks to be Triumphantly. 6 had he not died in 1981 of cancer. proud of their heritage. So in his own right As Roberts mentions in his editorial, Marley was a Third World music pioneer who Considered today reggae classics, Marley’s Marley’s musical genius generated from his eventually turned into a superstar. music never ceases to refresh and reinvigo- hopes of empowerment and political uplifting Marley was a staunch advocate of con- rate each and every time that it is played. Indeed, it is his music’s staying power that for his Jamaican people. ‘‘Marley was a scious lyrics and he urged Black people to think positive and do positive things. Now- keeps alive the image and spirit of Bob staunch advocate of conscious lyrics and he adays it is fashionable to hear gurus of self- Marley as fans from all walks of life, and so- urged Black people to think positive and do help working their spiel about positive cial standing—from the townships of Soweto positive things,’’ Roberts explains. Not only thoughts. You would think that they had lis- in South Africa to the plush, affluent home- was Marley a lyricist and a leader but he was tened to the Great Rastaman. Like Malcolm steads of Beverly Hills—celebrate his 61st an international ambassador advocating for X and Marcus Mosiah Garvey, Bob Marley earth day.

VerDate Aug 31 2005 06:31 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00019 Fmt 0626 Sfmt 0634 E:\CR\FM\A14FE8.075 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS E148 CONGRESSIONAL RECORD — Extensions of Remarks February 14, 2006 HONORING SANDY GERMANY Sgt. Prendes was a native of Nevada and took the Rev. Al Green to really get the graduated from Las Vegas High School where party started at the White House on Monday HON. DALE E. KILDEE he was Vice President of his senior class and night. captain of the football team. He is survived by The soul man turned soul saver worked his OF MICHIGAN magic on the East Room crowd, gathered to IN THE HOUSE OF REPRESENTATIVES his wife Dawn and two daughters from a pre- honor the Dance Theatre of Harlem and its Tuesday, February 14, 2006 vious marriage, Kylee and Brooke. Sgt. famed founder, Arthur Mitchell. Prendes, along with his family, was a devoutly ‘‘I-I-I-I, I’m so in love with you,’’ Green Mr. KILDEE. Mr. Speaker, I ask the House religious man. He engaged in bible study at rasped in his signature falsetto, arcing back of Representatives to join me today in recog- home with his wife and mentored children in like a bow about to launch its arrow. nizing Sandy Germany the National President his spare time. Before he died, he was in the Of course, there were many in the audience of the Veterans of Foreign Wars Ladies Auxil- process of building a 17 acre youth camp in of 80 or so who could sing Green’s enduring iary. The Curtis-Wolverton Post Veterans of Montana called, Creation Camp Jesus. hit ‘‘Let’s Stay Together’’ in their sleep. But Foreign Wars Post 3243 Ladies Auxiliary is Sgt. Henry Prendes could be described as was one of them President Bush? Green put him to the test. welcoming Mrs. Germany to their facility on everyone’s friend, always having a smile on ‘‘Ooh, loving you forever,’’ Green purred, February 22 in Fenton, Michigan. This is an his face, and always helping those in need. ‘‘is what I—’’ Suddenly, he thrust the micro- official visit to the State of Michigan by Mrs. Some help people because they are police of- phone right up to the lips of the surprised Germany. ficers, but Henry was a police officer to help president, who recovered enough to mouth Sandy Germany was elected to her position people. something back. at the 92nd National Convention of the Ladies Mr. Speaker, I am grateful to honor the Whatever it was could not be heard, but Auxiliary of the Veterans of Foreign Wars in memory of Sgt. Henry Prendes. Green was more than satisfied. August 2005. Reflecting the beliefs of the La- ‘‘He said ‘Nee-eee-eeed!’’’ squealed the f amazed hitmaster, hitting even higher notes dies Auxiliary she underscored the need to re- IN RECOGNITION OF THE DANCE than he’d been singing. ‘‘He did! He said member the sacrifices of the men and women THEATRE OF HARLEM ‘Neeeeed!’’’ After laughter and applause for that have fought to preserve our freedom. This the president’s grace note, the set then be- belief is an underpinning of the Ladies Auxil- came a singalong—was that Karl Rove join- iary as they work to preserve the memory of HON. CHARLES B. RANGEL ing in?—and then a dance-along, after Mitch- our courageous Army, Navy, Marine Corps, OF NEW YORK ell, a former star of the New York City Bal- and Air Force. IN THE HOUSE OF REPRESENTATIVES let, pulled Laura Bush up onstage. Sandy Germany is a life member of the Tuesday, February 14, 2006 President Bush, apparently pumped up after parrying to Green’s thrust, followed Kichler-Pippen Auxiliary Post 5658. She is eli- Mr. RANGEL. Mr. Speaker, I rise today to suit, taking with him Shirley Massey, wife of gible to be a member through her brother, her express how content I was to see President Walter Massey, president of Morehouse Col- father and her son. Her son, Curtis, is cur- Bush recognize the national treasure that is lege. rently serving with the U.S. Army in Korea and the Dance Theatre of Harlem at a dinner and ‘‘We got the president up onstage!’’ ex- Iraq. She has served in many positions with performance Monday, February 6 at the White claimed Mitchell afterward. Not a man who ordinarily likes to share the spotlight, the Ladies Auxiliary in addition to being em- House and to enter into the RECORD a Wash- ployed as the Town Clerk in Elberta, Alabama. Mitchell nevertheless gave Bush points for ington Post article dated Wednesday, Feb- effort, if not for style. ‘‘He did really well,’’ She is a mother and grandmother, giving of ruary 8 commemorating the event. Mitchell said. ‘‘He was tapping his foot, and her time, as a Life Member, to the VFW Na- In a tribute to the theatre which stands . . . moving. You know.’’ tional Home for Children. Sandy also belongs today as the first black classical ballet com- Mitchell is no stranger to the White to the American Legion Auxiliary and the Mili- pany, and its esteemed founder Arthur Mitch- House—he says he has been invited there by tary Order of the Cooties Auxiliary. ell, President Bush and many others were every president since John F. Kennedy. He’s Mr. Speaker, I ask the House of Represent- able to be exposed to the cultural jewel I am been there so often he knew many of the atives to join me in recognizing the life and honored to have situated in my Congressional waiters by name. But this night was dif- service of Sandy Germany. I commend her for district. ferent. The dinner and performance by mem- her commitment to helping our service per- The Dance Theatre of Harlem, founded in bers of the Dance Theatre of Harlem and oth- 1968, is a leading arts and cultural institution ers were the work of entrepreneur and phi- sonnel and for working to preserve the ideals lanthropist Catherine Reynolds, chairwoman that set our Nation apart from all others. dedicated to the advancement and cultural en- of the board of the predominantly black bal- f richment of youth from diverse backgrounds. let company. The show will air this summer Since its founding, it has brought modern and on PBS. PAYING TRIBUTE TO HENRY intrepid new forms of artistic expression to au- ‘‘What better place to showcase Dance PRENDES, KILLED IN THE LINE diences throughout New York City and the Theatre of Harlem during Black History OF DUTY world—embodying the beauty of the American Month than the White House?’’ she said. spirit. ‘‘It’s a ballet company in the midst of Har- HON. JON C. PORTER Even as the performing company enjoyed lem—that in and of itself is so American.’’ The presidential affair, she said, sprang OF NEVADA international acclaim, being the first U.S. ballet from a conversation she had a few months IN THE HOUSE OF REPRESENTATIVES company to perform in Russia and then per- ago with Laura Bush about the ailing com- Tuesday, February 14, 2006 forming in South Africa, the theatre has pany, on hiatus for the past year and a half strengthened its roots in Harlem. Currently the because of rising debt. Mr. PORTER. Mr. Speaker, I rise today to school enrolls some 700 students per year in Reynolds said the first lady asked, ‘‘ ‘How honor a great American, Sergeant Henry community, pre-professional and professional can I help?’’’ Reynolds had her answer ready, Prendes of the Las Vegas Metropolitan Police programs and offers courses in various dance and the result was a cozy little black-tie din- Department, who was killed in the line of duty forms ranging from ballet and tap to modern- ner in Mitchell’s honor, with the guests seat- on Wednesday February 1, 2006. Sgt. , jazz- and African dance, and even Irish step ed at intimate round tables mounded with Prendes was shot as he approached the front roses. Among the invited: Attorney General dancing. With its exceptional dancers, dazzling Alberto Gonzales, undoubtedly relieved to be door of a house in southwest Las Vegas, choreography, and cultural pride, the Dance while responding to a 911 call, at the age of anywhere but in the Senate hot seat where Theatre of Harlem continues to be a beacon he’d spent the day; donors and arts officials thirty seven. for all communities. such as the Ford Foundation’s Susan Sgt. Henry Prendes joined the Las Vegas Mr. Speaker, again please join me in salut- Berresford, Kennedy Center President Mi- Metropolitan Police Department on February ing the Dance Theatre of Harlem and express- chael Kaiser and Lonnie Bunch, founding di- 26, 1991. He spent his first years patrolling ing my gratitude to President Bush for recog- rector of the National Museum of African the east Las Vegas neighborhood surrounding nizing its contributions. American History and Culture; and a contin- Charleston and Lamb Boulevards and was [From the Washington Post, Feb. 8, 2006] gent of the black elite, such as ‘‘60 Minutes’’ correspondent Ed Bradley and Spelman Col- quickly promoted to Field Training Officer. On EN POINTE AT THE WHITE HOUSE January 2, 1999, after working one year for lege President Beverly Daniel Tatum. WITH A FETE FOR FOUNDER ARTHUR MITCHELL, The menu favored creamy comfort foods: the narcotics office as a detective, Henry THE BUSHES GIVE A LIFT TO DANCE THEATRE puree of parsnip soup, cheesy grits and spin- Prendes was promoted to Sergeant. As a Ser- OF HARLEM ach alongside roast kobe beef, a yellow pep- geant he worked for the Crimes against Youth (By Sarah Kaufman) per and avocado terrine, and whipped-cream- and Family Department, and later as Patrol There were ballerinas and cavaliers, Broad- dolloped lemon custard cakes with coconut Sergeant in the South West Area Command. way singers and a country crooner, but it ice cream and a blackberry-ginger sauce,

VerDate Aug 31 2005 06:31 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00020 Fmt 0626 Sfmt 0634 E:\CR\FM\A14FE8.080 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS February 14, 2006 CONGRESSIONAL RECORD — Extensions of Remarks E149 thick as syrup. It was not fare for the cal- ‘‘We’re close,’’ she said. ‘‘We’ll probably be HONORING MR. ROCKY SANTILLI orie-conscious. But there weren’t many of making an announcement in the summer.’’ FOR HIS CROWNING AS 2006 KING those to be seen, anyway; the dancers were f OF BASEBALLTOWN off warming up for the performance that was to follow. HONORING WILLIAM AND Filing into the East Room after dinner, we DOROTHY ZEHNDER HON. TIM HOLDEN found ourselves chatting with Andrew Card, OF PENNSYLVANIA Bush’s chief of staff, who seemed eager to IN THE HOUSE OF REPRESENTATIVES show his own artsy side. HON. DALE E. KILDEE ‘‘I hit a crossroads when I was a senior in OF MICHIGAN Tuesday, February 14, 2006 high school,’’ Card said, describing a choice IN THE HOUSE OF REPRESENTATIVES Mr. HOLDEN. Mr. Speaker, I rise today to he faced between accepting a scholarship to Tuesday, February 14, 2006 honor Mr. Rocky Santilli of Leesport Township the Hartt School of Music (on the strength of in Berks County, Pennsylvania, for his 2,000+ his trumpet playing) in West Hartford, Mr. KILDEE. Mr. Speaker, on February 17, Conn., or a Navy ROTC scholarship at the the Saginaw County Convention and Visitors career wins as a fast-pitch softball manager, University of South Carolina. Bureau will present its Pinnacle Award to Wil- and his naming as the 2006 King of Guess which one he chose. liam ‘‘Tiny’’ and Dorothy Zehnder for their re- Baseballtown. Still, he said, ‘‘I believe in the arts very Mr. Santilli started his managerial career in strongly. Every once in a while I get the markable contributions to the convention and tourist industry in Saginaw County. The 1959 with the Leesport-based Rising Sun trumpet out. Of course, my wife wants me to Sunners, and has since amassed over 2,000 play it in the closet.’’ Zehnder family has had a positive impact on It being Monday night, and close to 9 by Frankenmuth, Michigan, and changed the area victories along with dozens of trophies and this time—fans of Fox’s ‘‘24’’ know how sac- forever. Theirs is one of the great American honors. With Santilli at the helm, the Sunners rosanct that hour is—we pressed Card on an- success stories, replete with foresight, cour- captured three Amateur Softball Association other issue: Did he ever tune in to the Kiefer age, and hard work. (ASA) national titles, a number of gold medals Sutherland thriller, which recently revealed In 1950, the Zehnder family purchased the at the Olympic Festival, and a share of the that the chief of staff of the show’s president Fischer Hotel, and William Zehnder became International Softball Federation (ISF) Men’s is a murderous villain of presidency-destroy- World Fast Pitch Championship. ing dimension? the manager. Dorothy Zehnder became the Card’s eyebrows shot up merrily. ‘‘I hear kitchen manager, a role she continues today. Due to his impressive record with the the chief of staff is kind of a bad guy. Didn’t At that time, the Zehnder family had 21 years Sunners, Mr. Santilli was honored with the op- he drug the first lady?’’ Yep, and Card’s TV of experience running their own restaurant portunity to pilot the United States softball counterpart also conspired to engineer a across the street from the Fischer Hotel. After team four times at the Pan Am games. The nerve gas leak to incriminate a terrorist or- a series of improvements to the Fischer Hotel U.S brought home silver medals in all four ganization to prove it had weapons of mass games, finishing just behind Canada. destruction. culminating in a major renovation in the late 1950s, the Fischer Hotel was renamed the In 1991, Rocky Santilli was inducted into the Card backed up in mock horror. ‘‘I’m not ISF Hall of Fame on behalf of his remarkable him,’’ he said emphatically, eyes wide, wav- Frankenmuth Bavarian Inn. The de´cor and ar- ing his arms in front of himself to ward off chitecture of the Bavarian Inn started the career. Two years later he was enshrined in any notion of a link to reality. ‘‘I didn’t do transformation of Frankenmuth into ‘‘Michi- the ASA National Hall of Honor and the Penn- that.’’ And then he was gone, spurred by a gan’s Little Bavaria.’’ The weeklong opening sylvania Sports Hall of Fame. In 1998 Mr. desperate need to catch up with his wife. celebration held in 1959 proved to be very Santilli returned to coaching and led the Addressing the audience, Mitchell pointed popular and has turned into the annual Schuylkill Valley High School girls’ softball out his company’s oft-reported origins, that squad to a 64–67 record over 7 years. In it was the assassination of Martin Luther Frankenmuth Bavarian Festival. The addition of the Glockenspiel and Wooden Bridge has 2004, Rocky Santilli retired as a legend. King Jr. in 1968 that inspired him to found a Mr. Speaker, I had the privilege of meeting classical ballet company of African Amer- enhanced the character of Frankenmuth’s ican dancers—which is, all these years later, downtown area. Rocky several years ago through Sheriff John still a unique institution. Dorothy developed most of the recipes H. Kramer, and it is an honor today to recog- Left unsaid was what it would mean for served in the restaurant. The restaurant can nize such a talented and accomplished man black ballet dancers if such a company could accommodate 1200 diners at one time, and who has brought pride and inspiration to the not survive. In fact, none of the speeches people of my district. I ask you and my other mentioned Dance Theatre of Harlem’s having annually over 750,000 pounds of chicken is served to its guests. Dorothy plays a vital role distinguished colleagues to join me in con- come so close to financial ruin, or the fact gratulating Mr. Rocky Santilli on his 2006 King that its laid-off dancers’ unemployment in ensuring the food is prepared correctly and claims ran out long ago. served promptly. Many local Frankenmuth of Baseballtown award, recognizing his re- Bush, seated with his wife in the front row leaders started their work life in the Bavarian markable career in softball, and thanking him and within a few feet of the small stage, Inn kitchen under Dorothy’s tutelage. Today for the many contributions he has made to- smiled throughout the show, which included the Frankenmuth Bavarian Inn is one of the ward the well-being of the citizens of Pennsyl- children as well as professionals. Hands vania. clasped in his lap, he kept up a steady piston top ten family-owned restaurants in America. f action with one knee—an intriguing tic, yet In addition to the restaurant, their holdings what did it mean? Restlessness? Excitement? include Bavarian Inn Lodge, Frankenmuth IN RECOGNITION OF GEORGE A dream of mashing the pedals on a moun- River Place, Castle Shops, Freeway Fritz, SMALL’S SERVICE TO THE tain bike? Frankenmuth Motel, and several gift shops on UNITED STATES ARMY Harolyn Blackwell, Audra McDonald and Main Street. The Zehnders employ over 1,000 LeAnn Rimes each sang solos as well as people and serve one million visitors each songs that accompanied more dancing. It year making Frankenmuth a top tourist des- HON. JON C. PORTER was all very classy, very polite, if somewhat OF NEVADA tination. restrained. IN THE HOUSE OF REPRESENTATIVES Enter Al Green, the great uncorker, who Tiny Zehnder’s vision for the Frankenmuth got throats to open and hands to clap—some community has made it a great place for fami- Tuesday, February 14, 2006 on the beat, quite a few off—and got the lies to gather, live, and work. The Zehnders Mr. PORTER. Mr. Speaker, I rise today to president to join in the dance. buy locally and utilize Michigan commodities. recognize the contributions of a great Amer- ‘‘The whole evening was so relaxed,’’ They are always looking for ways to improve ican, George Small. I honor him today for his Mitchell enthused afterward. ‘‘That was a their business and their community. They have major miracle.’’ service to our great Nation in the United Speaking of miracles, Mitchell stated his passed on their skills and work ethic to their States Army during World War II. favored outcome: ‘‘I hope this opens the children. The Bavarian Inn enterprise is a Mr. Small entered active duty from the Army door, that dance becomes a line item in the multi-generational operation with their children Reserves as a 2nd Lieutenant on April 25, federal budget so we can take the arts all and grandchildren managing and working in 1941. After receiving training at the Army’s across America.’’ various capacities. Tiny and Dorothy Zehnder Chemical Warfare School, he became Base A different miracle may be a bit closer to are an inspiration to everyone and excellent Chemical Officer in Albuquerque, New Mexico. actually coming to pass. When she became board chairman and vowed to get the troupe role models for our youth. I ask the House of From Albuquerque, Mr. Small was transferred back on its feet, Reynolds told The Wash- Representatives to rise with me and applaud to Clark Airbase until he was ordered to Ba- ington Post that ‘‘failure is not an option.’’ the outstanding success of the Zehnders and taan in the Philippines on December 24, 1941. So how close to success—and public perform- congratulate them as they are honored by the Mr. Small was assigned to the 31st Infantry ances—is the company now? Saginaw community. until the surrender of Bataan on April 9, 1942.

VerDate Aug 31 2005 06:31 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00021 Fmt 0626 Sfmt 9920 E:\CR\FM\A14FE8.084 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS E150 CONGRESSIONAL RECORD — Extensions of Remarks February 14, 2006 Prior to the 31st Infantry’s surrender, Mr. I agree that it is a disgrace to spend only a vital infrastructure. The insurgency might Small was suffering from malaria and malnutri- small part of its 7 percent budget increase for never have gotten such a head start. . . . But tion caused by the malaria. He was released increase of pay and recruitment bonuses while the obstinate ideologues in Mr. Rumsfeld’s just 3 days before he began what would be- a ‘‘large chunk of this nearly $30 billion goes Pentagon have never accepted the fact that come known to history as the Bataan Death to more new weapons and postponing over- the reality of Iraq did not fit their assumptions. March. Although weak, Mr. Small survived the due cuts in wasteful Air Force and Navy The budget and the four-year plan released death march and the 17-day journey in the in- projects unrelated to fighting terrorism. This with it read almost as if the current conflict famous ‘‘Hell Ships’’ to Japan. highlights as nothing else can the disconnect had never happened and could never happen While being held by the Japanese, Mr. with what Secretary Rumsfeld says he cares again.’’ Small’s weight declined to approximately 98 about and what he really cares about. The budget priorities reveal Mr. Rumsfeld’s pounds. He was held as a Japanese Prisoner When the Secretary of Defense is at a utter disdain for our troops and an almost un- of War for 3 years and 5 months until his lib- press conference or a briefing, he consistently believable disconnect from what is actually eration on September 10, 1945. talks about this war and the brave men and happening in Iraq. In his speech before the Mr. Small was awarded the American De- women sacrificing in Iraq to keep us safe. He National Press Club on February 3, 2006, fense Service Medal with one Bronze Star, an and President Bush have repeatedly ex- Secretary Rumsfeld reiterated his view of the American Campaign Medal, the Asiatic Pacific pressed the view that we are fighting the ter- war Americans now face, a war he calls a Campaign Medal with two Bronze Stars, the rorists ‘‘over there, so we don’t have to fight ‘‘generational war.’’ This is the war both he Distinguished Unit Badge with two Oak Leaf them over here.’’ Support the troops has be- and the President have variously described as Clusters, the Combat Infantry Badge, the Phil- come the rallying call for those who blindly ac- the war on fascist Islamic fundamentalists; or ippine Liberation Ribbon with one Bronze Star, cept platitudes in place of plans and rhetoric against al Qaeda terrorists, or ideologues de- the World War II Victory Medal, and the POW instead of substantive answers to the many le- termined to replace our American values with Medal for his meritorious service. gitimate questions being asked by millions of the values of those who hate freedom and Mr. Small was discharged from the Army on US. citizens. Secretary Rumsfeld misses no hate our way of life. November 26, 1946 and decided to stay in the opportunity to label Americans who do not A very important point made by the Times Army Reserves until his retirement as a Major give unquestioning support to the President’s editorial and the one I want to particularly em- on March 1, 1968. Mr. Small will celebrate his war as unpatriotic and worse giving support to phasize is the complete disconnect between 98th birthday on February 24, 2006. Mr. terrorists and harming our troops in Iraq. the Pentagon budget and spending plan set Small’s will to survive and dedication to the It is quite obvious to me that neither Presi- out and explained to the National Press Club United States Army is a testament to his char- dent Bush nor Secretary Rumsfeld support our on February 3, 2006, and what Mr. Rumsfeld acter, and it is an honor to recognize him troops in Afghanistan and Iraq. The President is spending on in 2007. The President and Mr. today. precipitously sent our troops into battle on Rumsfeld have told the Nation it will be fight- Mr. Speaker, it is with great pride and heart- false information and with no plan for the ing for the next 30 years or perhaps forever a felt gratitude that I salute a great American peace. Iraq has become a haven for terrorists long war against an army we can’t see be- hero, George Small, for his service and dedi- and is currently in a civil war in which our cause it does not represent a nation state; it cation to our great Nation. troops are caught with nowhere to go. Sec- may not wear a uniform; it could be in any f retary Rumsfe1d sent them into combat with- country at any time. But, as the Times points out the necessary armored trucks and tanks out: ‘‘Instead of reallocating resources toward SHORTCHANGING OUR TROOPS: and without the necessary body armor. Even the real threat America faces, the military RUMSFELD SPENDS BILLIONS TO from the beginning of the war, there were sto- services continue to pour their money into FIGHT FICTIVE SUPERPOWERS ries about parents having to buy their sons fighting fictive superpowers in the wild blue and daughters armor and of parents collecting yonder and on and below the seven seas. HON. CHARLES B. RANGEL used bullet proof vests from policemen. Even Pentagon budgeters showed themselves so OF NEW YORK after Rumsfeld was asked when he would get pathetically unable to restrain spending on ex- IN THE HOUSE OF REPRESENTATIVES his armor, Rumsfeld had nothing but the most pensive ships and planes that they actually cut Tuesday, February 14, 2006 unsettling reply. You go to war with the Army back, rather than increased the overall size of you have, not the Army you wish you had. No, the Army over the next few years to pay for Mr. RANGEL. Mr. Speaker, I rise to intro- Secretary Rumsfeld, you go to war with a it. duce into the RECORD the editorial entitled properly equipped army and an exit plan to It would cost about $4 billion to $5 billion a ‘‘Still Shortchanging the Troops’’ which ap- get the troops out of harm’s way when the year to give the Army 30,000 more troops, the peared on February 10, 2006, in the New York mission is accomplished. minimum it needs to check its alarming slide. Times. The military industrial complex is in Even after this incident, when Secretary Instead the Pentagon chose to begin the con- your face America, front and center, rewarding Rumsfeld was questioned by Members of struction of two unneeded new stealth destroy- corporate America, contractors and Halli- Congress about the lack of proper armor, the ers, which will end up costing $2 billion to $3 burton, but shortchanging the troops. troops did not receive what they needed. A re- billion each. The New York Times in its lead editorial on cently released report from the Navy and Mili- It also decided to splurge on a new nuclear February 10, 2006, made a scathing criticism tary pathologist showed that 80 percent of attack submarine for $2.6 billion and to shell of Secretary Donald Rumsfeld’s recently re- deaths from torso injuries could have been out $5.5 billion for separate Navy and Air vealed Defense Department budget. As the prevented if the troops had had the proper Force versions of new stealth fighter jets, plus Times put it: ‘‘It’s amazing how Donald Rums- body armor. The Navy had ordered the armor. another $5.5 billion for yet a third version that feld’s Defense Spending plan can produce a As of January 7, the Army had not. This indi- either can use. In all the Pentagon is asking $439 billion and still skimp on the one thing cates a neglect of the troops, not support for for $84 billion to buy weapons systems—twice the American Military desperately needs: ex- the troops. what it got in 1996—and $73 billion more for panded ground forces so the weakened and I am also glad that the Times repeats a research and development. cannibalized Army’’ can meet the needs of truth well worth repeating and one I hope the This budget would be wasteful even under Iraq without hurting its ability to respond to country will finally understand and will not only a worst-case assumption that had a second other threats. demand Secretary Rumsfeld’s resignation but superpower arising within the life span of I do not believe more ground troops are hold him responsible for the many unneces- these weapons, turning hostile to America and needed in Iraq. I think this editorial is ref- sary deaths in Iraq caused by his refusal to arming itself to the teeth with the most ad- erencing the fact that the troops fighting in listen to his own senior generals. vanced weapons. There’s still unnecessary Iraq are returning two, three and four times According to the Times and according to my spending that could be used to repair the and have borne more than their fair share of belief and that of many of my Democratic col- Army, which has been ground down at least President Bush’s Iraq war. I support Con- leagues: ‘‘The prospects of Iraq might have as much by Pentagon miserliness as by Iraqi gressman MURTHA’s position that our ground been very different today if Mr. Rumsfeld had insurgents. troops in Iraq have become the targets in Iraq; listened to some of his own senior generals The citizens of this country, all of them care the one unifying idea for all the splintered fac- and occupation officials and authorized signifi- about the troops. Disagreeing with the Presi- tions fighting a civil war there is that Ameri- cantly larger ground forces from the beginning. dent’s policies or lack of them does not mean cans must get out of their country. However, The early looting might have been contained an American does not care about the troops. there is much I do agree with in the editorial. before it shattered political confidence and I would argue those questioning the President

VerDate Aug 31 2005 06:31 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00022 Fmt 0626 Sfmt 9920 E:\CR\FM\A14FE8.088 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS February 14, 2006 CONGRESSIONAL RECORD — Extensions of Remarks E151 care more about the troops than the Presi- The Army plan calls for ensuring the 28 re- as much by Pentagon miserliness as by Iraqi dent. In the same way, Secretary Rumsfeld, maining combat brigades will be fully insurgents. preparing for wars with fictive superpowers manned, trained and equipped to be ready to The military contractors are doing just while still ignoring the very real need of the deploy, Schoomaker said. Toward this goal, fine. It’s the troops in Iraq who need help the Army has budgeted about $21 billion from Washington. troops in Iraq, reveals a chilling lack of con- from 2005 to 2011 to modernize equipment for cern for the troops. the National Guard, which he said was a f [From the Washington Post, Feb. 3, 2006] fourfold increase over funding levels in 1999. ARMY PLEDGES NO CUTBACKS IN NATIONAL ‘‘This is a tremendous investment,’’ IN RECOGNITION OF DR. RICHARD GUARD Schoomaker said. ‘‘This is not taking things P. MCCORMICK (By Ann Scott Tyson) down; this is building wholeness up.’’ Facing pressure from both parties in Con- gress and state National Guard leaders, the [From the New York Times, Feb. 10, 2006] HON. FRANK PALLONE, JR. Army yesterday committed to keeping the STILL SHORTCHANGING THE TROOPS National Guard’s authorized manpower at It’s amazing how Donald Rumsfeld’s De- OF NEW JERSEY 350,000 and promised to fund it up to that fense Department can produce a $439 billion IN THE HOUSE OF REPRESENTATIVES level. spending plan and still skimp on the one ‘‘If they recruit 350,000, the funding’s there. thing the American military desperately Tuesday, February 14, 2006 Their authorization remains 350,000,’’ Gen. needs: expanded ground forces so the weak- Mr. PALLONE. Mr. Speaker, I rise to pay Peter Schoomaker, the Army’s chief of staff, ened and cannibalized Army can meet the re- said at a Pentagon news conference yester- quirements of Iraq without hurting its abil- tribute to Dr. Richard P. McCormick, pro- day. ity to respond to other threats. fessor, dean, and historian of Rutgers—the Because of recruiting shortfalls, the Guard While the Pentagon intends to increase State University of New Jersey, as well as has about 333,000 soldiers on the rolls, but pay and recruitment bonuses, no part of its president of the New Jersey Historical Society, Guard leaders say they are confident of nearly 7 percent budget increase is aimed at who passed away on January 16, 2006. Hav- reaching the goal of 350,000 this year. ‘‘We raising overall troop strength. Instead, a are on a glide path to get to 350,000,’’ said Lt. ing faithfully served the University and the large chunk of this nearly $30 billion bo- State of New Jersey for over six decades, Dr. Gen. Clyde Vaughn, director of the Army Na- nanza goes to buying more new weapons and tional Guard, who appeared at the briefing postponing overdue cuts in wasteful Air McCormick died after an extended illness at with Schoomaker. Force and Navy projects unrelated to fight- the age of 89. The Army had proposed cutting the budg- ing terrorism. Born December 14, 1916, in Queens, New eted Guard strength by about 17,000 posi- The prospects for Iraq might be very dif- tions, in part by replacing six combat bri- York, Richard Patrick McCormick moved to ferent today if Mr. Rumsfeld had listened to Tenafly, New Jersey, and attended Rutgers gades that each have 3,500 to 4,000 slots with some of his own senior generals and occupa- brigade headquarters that have only a few College, graduating with a bachelor’s degree tion officials and authorized significantly in 1938. In 1940, he earned a master’s degree hundred, said Maj. Gen. Roger P. Lempke, larger ground forces from the beginning. The president of the Adjutants General Associa- early looting might have been contained be- in history from Rutgers Graduate School–New tion of the United States. fore it shattered political confidence and Brunswick and then received his doctorate in The National Guard, which represents vital infrastructure. The insurgency might 1948 from the University of Pennsylvania. about 38 percent of the U.S. military’s force never have gotten such a head start. The in- structure, has served heavily in Iraq, deploy- After teaching in the history department for cineration tactics of Falluja and the Abu ing seven combat brigades as well as head- three years, Dr. McCormick was appointed the Ghraib nightmare might have been avoided. quarters and other units with tens of thou- Rutgers University Historian in 1948, at which And the Army’s downward spiral of readi- sands of troops since the war began. Last ness, recruitment and morale might never time he developed a full-year course on New fall, it surged 50,000 troops to respond to hur- have begun. But the obstinate ideologues in Jersey’s history. A prolific writer, Dr. McCor- ricanes Katrina and Rita. mick was awarded the biennial book prize ‘‘There’s a very strong sense out there Mr. Rumsfeld’s Pentagon have never accept- among our political leadership that the ed the fact that the reality of Iraq did not fit from the American Association for State and Guard should not be reduced in any way their assumptions. The budget and the four- Local History in 1968 for his work ‘‘Rutgers, a right now,’’ Lempke said yesterday. ‘‘We year plan released with it read almost as if Bicentennial History.’’ He remained at Rutgers don’t know where the war is going. We’re the current conflict had never happened and where he chaired the history department from very heavily deployed’’ and the suggested could never happen again. 1966 to 1969, chaired the Rutgers College Instead of reallocating resources toward cuts ‘‘didn’t set well,’’ said Lempke, whose Coeducational Committee in 1971, and served association represents the senior leaders of the real threats America faces, the military services continue to pour their money into as dean of Rutgers College from 1974 to the Army and Air National Guard in the 54 1977. states, territories and the District of Colum- fighting fictive superpowers in the wild blue bia. yonder and on and below the seven seas. Pen- Following his retirement in 1982, Dr. McCor- A bipartisan group of 75 U.S. senators yes- tagon budgeters showed themselves so pa- mick remained active on campus and was terday sent Defense Secretary Donald H. thetically unable to restrain spending on ex- awarded an honorary doctor of letters degree Rumsfeld a letter stating they ‘‘strongly op- pensive ships and planes that they actually cut back, rather than increased, the overall by the University, a rare distinction for faculty pose’’ reported proposals by the Pentagon to members. In 1990, he was inducted into the cut National Guard force levels. size of the Army over the next few years to ‘‘We respectfully oppose proposals to cut pay for it. Rutgers Hall of Distinguished Alumni, and in the end-strength of the National Guard,’’ It would cost about $4 billion to $5 billion 2002, the American Historical Association said the letter from Sen. Chrstopher S. Bond a year to give the Army 30,000 more troops, granted Dr. McCormick the Award for Schol- (R–Mo.) and Sen. Patrick J. Leahy (D–Vt.), the minimum it needs to check its alarming arly Distinction for lifetime achievement. Addi- co-chairs of the Senate’s National Guard slide. Instead the Pentagon chose to begin tionally, this past fall, the Rutgers College Caucus. The letter signed by 73 other sen- the construction of two unneeded new Educational Opportunity Fund created the stealth destroyers, which will end up costing ators. Richard P. McCormick Social Justice Award in Lempke said he welcomed the Army’s com- $2 billion to $3 billion each. mitment to keep end strength at 350,000, It also decided to splurge on a new nuclear recognition of his 1969 efforts to address Afri- which he said will help ensure budget money attack submarine for $2.6 billion and to shell can-American issues at the school, despite is allocated for the necessary training and out $5.5 billion for separate Navy and Air protests on three of the University’s cam- recruitment. Force versions of new stealth fighter jets, puses. These honors, among others, depict a Schoomaker said the Army would progress plus another $5.5 billion for yet a third man of great worth who will surely be missed. version that either can use. In all, the Pen- with a plan to cut the number of National Dr. McCormick is survived by his wife of 60 Guard combat brigades from 34 to 28, but re- tagon is asking for $84 billion to buy weap- iterated a plan to replace them with six sup- ons systems (twice what it got in 1996) and years, Katheryne Levis McCormick, as well as port brigades. One reason for the reduction $73 billion more for research and develop- their daughter, Dorothy Boulia; son, the cur- in combat brigades, he said, was that many ment. rent president of Rutgers, Richard L. McCor- of the units were not fully manned or This budget would be wasteful even under mick; and three grandchildren. equipped, a situation worsened when soldiers a worst-case assumption that had a second Mr. Speaker, it is my pleasure to commemo- superpower arising within the lifespan of and gear were shifted to units deploying for rate Dr. McCormick and to thank his family for Iraq—a process the Army calls ‘‘cross-lev- these weapons, turning hostile to America eling.’’ and arming itself to the teeth with the most the countless contributions that he made to ‘‘We’ve used 34 brigades all over the world, advanced weapons. There’s still unnecessary the community and the State of New Jersey. and we’ve had to cross-level big time since 9/ spending that could be used to repair the His dedication to education, history, and activ- 11 to make that happen,’’ Vaughn said. Army, which has been ground down at least ism will not be forgotten.

VerDate Aug 31 2005 06:31 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00023 Fmt 0626 Sfmt 9920 E:\CR\FM\A14FE8.091 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS E152 CONGRESSIONAL RECORD — Extensions of Remarks February 14, 2006 RECOGNIZING MR. ADAM BROWN have also brought you honor. And search for who has given nine years of invaluable service OF BOILING SPRINGS, PENNSYL- a small measure of peace. In a world that to the Laughlin Chamber of Commerce. VANIA was fair, no one would ask you to be strong Before joining the Laughlin Chamber of again, because you have shown enough strength for your entire lifetime. But, alas, Commerce, Jo Elle Hurns worked for twenty HON. TODD RUSSELL PLATTS this world lacks perfection, and you are years in the Colorado River Communities, her OF PENNSYLVANIA never rid of what is asked of you. first five years as a reporter. In 1990, she IN THE HOUSE OF REPRESENTATIVES Though it isn’t fair, still you must be went to work as Marketing Director for Don strong, strong for your family, and your Laughlin. Tuesday, February 14, 2006 community. Do not search for recognition In 1997, Jo Elle Hurns became the Execu- Mr. PLATTS. Mr. Speaker, I rise today to for what you have done; it will come of itself. It seems impossible to find enough tive Director of the Laughlin Chamber of Com- recognize the patriotic essay on military serv- toughness in oneself to remain the pillar of merce. In this position, she began by assisting ice by one of my young constituents, Mr. strength for so many, but you can do it, and the community with economic development Adam Brown of Boiling Springs, Pennsylvania. you must do it. People will look to you as plans for the region, including creating a con- Adam’s essay entitled, ‘‘Narratives of Sol- the military, be it invited or not. So your ac- sensus among nine different jurisdictions to diery,’’ was submitted for publication by Mr. tions reflect on the military, the entire mili- fund the $28 million reconstruction of Needles Larry Babitts, a twice-wounded, two-war com- tary, regardless of your branch, it is for this Highway. Her efforts in lobbying at local, state reason you must still be strong. Though you bat veteran and commander of the Military and federal levels for major infrastructure im- Order of the Purple Heart, Capitol City—West may not think it, you will find inner strength to hold up all that you need to. provements in Laughlin included trails, suc- Shore Chapter 11, Boiling Springs, Pennsyl- You who retreats from honor’s light, again cessful multi-million dollar grant attainment vania. In his essay, Adam pays tribute to the you are addressed. When a soldier enters and the sale of federal lands for further resi- courageous service and sacrifice of those men your presence, dare you not to criticize or dential and commercial growth. Due to her and women in uniform who selflessly guard even meet eyes with him. For you did cower, heartfelt commitment to raise funds and de- and no self-justification will nullify that our individual freedoms and liberties here at velop programs for dozens of social service home and throughout the world. fact. You have the luxury of speaking ill of the nation, and its leader. Carry with you agencies including the Colorado River United Mr. Speaker, I am pleased to submit any politics you may, speak ill of your gov- Way, she greatly influenced the effectiveness Adam’s essay for publication in the CONGRES- ernment if you see fit, for that is the first of many organizations in giving service to the SIONAL RECORD, at Mr. Babbits’ request. liberty we took upon creating our country, area. Adam’s essay reminds all Americans that it is but see the line between the government, Jo Elle Hurns was also very involved in our solemn national duty to support our fellow and the soldier. For that line is a canyon for serving the community. From 1995 to 2000 citizens who volunteer to forfeit their own se- which there is no compare, And if you truly she was on the Laughlin Town Board, and in think ill of your government, do not impose curity to defend and preserve the rights and 2005 and 2006 she was a member of the Ne- liberties that make our Nation the world’s pin- upon a soldier, your dissatisfaction. For if not for him you would hail: a British crown, vada Alliance for the Boys and Girls Club. She nacle of freedom. In Adam’s words, ‘‘there is a Mexican president, a slave holder, a Ger- received the Spirit of the Colorado River no greater gift than serving your country.’’ man Furher, a Japanese Emperor, a Korean Award in 2001, and for the past six years has NARRATIVES OF SOLDIERY Dictator, a Russian Czar, or an Arab Sheik. been the Distinguished Woman of Southern (By Adam Brown) This list is long and the common soldier did Nevada. Hang your head in shame, those who think fight and prevail over all these. So you have Mr. Speaker, I am grateful for the oppor- themselves too good for service, for there is no place to quarrel with such a noble man. Keep in mind, the soldier is merely the sword tunity to honor Jo Elle Hurns for her service to no man who may say it with truth. Those Laughlin and the State of Nevada. who find themselves in wealth’s company of his people, to do what they wish. One does and belittle the soldier, hold your self-right- not blame the sword for who it cuts down, or f why it cuts, the sword only does what its eous tongues in the presence of men greater H.R. 4744, TO DESIGNATE THE DE- than yourselves. Before your mercurial wielder commands. Yet forget not your duty, to speak against the government if it should PARTMENT OF VETERANS AF- words lash on the backs of the men who become tyrannical, because you are bound by fight, remember this; the dream that you FAIRS OUTPATIENT CLINIC IN honor to see the sword not abused. live was delivered by those men whom you TULSA OKLAHOMA AS THE ER- Some men measure success in gold and NEST CHILDERS DEPARTMENT belittled. For a rich man who thinks himself things of beauty; I pity these men. Some too valuable for soldiery is worth less than measure success in popularity, these men OF VETERANS AFFAIRS OUT- the vagabond who answers his nation’s call. too, I pity. For success is nothing more than PATIENT CLINIC All men of a free nation are indebted to na- accomplishing something correctly, every tion that grants them that freedom. And the man has done this, and every man has failed HON. JOHN SULLIVAN soldier, violent so as his acts may be, is the at this. Men place too much importance on OF OKLAHOMA vessel with which those freedoms are deliv- success, and in doing so have neglected the ered. Go Curser of the warrior, exercise your most important of all virtues, honor. But IN THE HOUSE OF REPRESENTATIVES freedoms; speak what you will, worship what what is honor? Honor cannot be tasted, seen, Tuesday, February 14, 2006 you will, and congregate where you will, but or heard, but felt; not just by he who is hon- rest your head at night with an uneasy con- orable, but everyone around him as well. Mr. SULLIVAN. Mr. Speaker, this evening, I science. For when your nation looked for Honor is standing defiantly in the face of introduced H.R. 4744, legislation to designate your service in time of war, you lowered that which is wrong and stating with a stem the Department of Veterans Affairs (VA) Out- your head, so as not to be recognized, so let voice and clenched fists, ‘‘This is not right, patient Clinic in Tulsa, Oklahoma as the Er- your head stay lowered in dishonor. Wise is and I will not let this stand.’’ Those words the common man who recognizes his debt, nest Childers VA Outpatient Clinic to honor will emanate to the heavens and rally the one of our nation’s finest military heroes. and pays it with his service, for there is no angels’ cheers. Those words will shake hell greater gift than serving your country. to hysteria and send demons fleeing in fear. Ernest Childers holds the distinction of Common man, you may walk the roads of Take a moment, Common Man of the Sol- being the first Native American to receive the your country knowing one absolute truth, dier, and find simple comfort in the fact that Congressional Medal of Honor for his heroic every time you fought on our behalf, every not all turn a blind eye to what you have action in 1943 at the battle of Oliveto, Italy, time you killed out of orders, and every time done. For what you carry with you; you are when he charged German machine gun nests you held a dying brother, you earned your honored. against machine gun fire. Although suffering a rights. Every American gets them, but you, f oh noble veteran, have earned them in a way broken foot in the assault, Childers ordered the nay-sayer will never. And his riches can PAYING TRIBUTE TO JO ELLE covering fire and advanced up a hill, single- never buy what you have earned. Keep this HURNS OF THE LAUGHLIN CHAM- handedly killing two snipers, silencing two ma- knowledge sacred, that in paying the debt to BER OF COMMERCE chine gun nests and capturing an enemy mor- your country, all others now owe that debt tar observer. His courageous action helped to you. You now owe no man, only God. American troops win the battle and save the Common man of soldiery, what you have HON. JON C. PORTER lives of American soldiers. Childers was also done will be forever with you, both your val- OF NEVADA awarded the Purple Heart and the Bronze Star iance and your nightmares. For every soldier IN THE HOUSE OF REPRESENTATIVES for his actions. remembers, be it right or wrong, taking life. Tuesday, February 14, 2006 So when you wake in your bed with cold Born in Broken Arrow, Oklahoma, Childers, sweat, find comfort; find comfort in the fact Mr. PORTER. Mr. Speaker, I rise today to enlisted in the Oklahoma National Guard in that the actions that give you nightmares, honor Jo Elle Hurns, an outstanding individual 1937 to earn extra money while attending the

VerDate Aug 31 2005 06:31 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00024 Fmt 0626 Sfmt 9920 E:\CR\FM\A14FE8.096 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS February 14, 2006 CONGRESSIONAL RECORD — Extensions of Remarks E153 Chilocco Indian School in north-central Okla- must remember not only our outstanding he- His job was covering the rural commu- homa. While stationed at Fort Sill in Okla- roes such as Dr. Martin Luther King Jr., Fred- nities surrounding the city of Fresno. homa, he was deployed to Africa to fight in erick Douglass, former Congresswoman Shir- ‘‘He had a lot of concern with what was happening in these small, poorer farming World War II. Childers retired from the Army in ley Chisholm, Rosa Parks, and Coretta Scott communities. His heart was out here, and he 1965 as a Lieutenant Colonel but remained King, this month, but also the extraordinary personally was out here. He would visit. He very active in the Tulsa community serving In- lives of everyday African Americans who have would write our stories,’’ said Joseph dian youth, which led to the naming of a mid- helped build our great Nation. Amador, a former Mendota mayor. Col- dle school in Broken Arrow, Oklahoma in his I want to particularly honor the lives of two leagues recalled his extraordinary compas- honor in 1985. exceptional women who we lost recently: sion, which he sometimes masked with imp- As a proud Creek Indian, in 1966, Childers Rosa Parks and Mrs. Coretta Scott King. Their ish cantankerousness. was honored by the Tulsa Chapter of the lives and their work for civil rights reflect the Every December, Mr. Coleman unfurled his struggle and contributions that African Ameri- ‘‘Bah Humbug’’ sign, a banner passed on to Council of American Indians as ‘‘Oklahoma’s him years ago by a cigar-chomping, old-time most outstanding Indian.’’ Of his military serv- cans have made to our society. Their actions reporter. But every August, he threw a ice in World War II, Childers once said, ‘‘The set America on a course of inclusion and toler- Christmas party, complete with a tree. The American Indian has only one country to de- ance, which continues to benefit us everyday. price of admission was a donation for the fend, and when you’re picked on, the Amer- We must follow their steps and build upon food banks in a season when people often for- ican Indian never turns his back.’’ A fitting their great accomplishments for equality and get to donate. quote from a man who exemplified courage justice. He showed up to tutor first-graders at Kirk Elementary School even if it was his day off. under fire and dedication to defending our na- During this month and throughout the year, I encourage those living in California’s 32nd Tuesday mornings were his regular visiting tion. day. Until his death on March 17, 2005, Childers Congressional District and around the country Mr. Coleman came to journalism later in was Oklahoma’s last Congressional Medal of to take the time to honor the African American life, one of the older students to graduate Honor recipient still living in the state. I am community by learning about its vast accom- with a journalism degree from California proud to introduce this legislation to honor his plishments and rich culture. State University, Fresno, in 1988, the year he life and legacy. We were honored to have him f started working at The Bee. Earlier in life, grace us with his model character, defend us he was a college football player, a seminary HONORING THE LIFE OF MR. student, a banker, a law student and an air- with his bravery, and leave us all with a life DONALD COLEMAN line employee. well-lived. He was at times The Bee’s only black news f reporter. HON. JIM COSTA ‘‘We discussed racial issues many times, IN MEMORY OF ELIZABETH OF CALIFORNIA and I learned a great deal from him. In many DAILEY IN THE HOUSE OF REPRESENTATIVES ways, I think he was a pioneer,’’ said Jim Tuesday, February 14, 2006 Tucker, host of ‘‘Valley Press’’ and one of Mr. Coleman’s journalism professors. HON. JO ANN DAVIS Mr. COSTA. Mr. Speaker, I rise today to Outside of work, Mr. Coleman was the con- OF VIRGINIA celebrate the life of Donald Coleman, reporter summate man about town, friend to every- IN THE HOUSE OF REPRESENTATIVES for the California newspaper, The Fresno Bee. one, especially in the Tower District. Donald Coleman was a gentleman, a fine ‘‘He was the unofficial secretary of state. Tuesday, February 14, 2006 reporter and truly a person with a passion for He knew everyone, and everyone knew him: Mrs. JO ANN DAVIS of Virginia. Mr. Speak- life. For those of us who had the good fortune hairstylists, lawyers, bartenders, professors, er, I rise today to express my sorrow for the to know him or work with him there is now a artists, poseurs and idiots. Don was wonder- loss of Stafford County Treasurer Elizabeth very empty space. Personally, I will miss the ful to everyone. The word that comes to Dailey, who recently passed away at the mind is sweet. He was the most decent guy. times that Don and I shared together in the I don’t know why he put up with all of us,’’ young age of 47. A leader in the community, Tower District where he would humorously said longtime friend Andrew Simmons. Elizabeth was a person who sincerely cared point out the flaws and shortcomings we all He was passionate about travel and fam- about the citizens of Stafford, and worked to experience in life. ily—he carried a picture of his grandmother make life easier for them. In her tenure as As we reflect upon a life well lived, we in his wallet. He bought lottery tickets, Treasurer since 1993, Elizabeth provided Staf- should rededicate ourselves to caring and planning his Jamaican escape. Bee col- ford with service, giving citizens individual as- helping those less fortunate than ourselves. leagues on Tuesday recalled his running sistance with complicated tax and financial shtick when the jackpots were high. And in that sense, Don was a good role model ‘‘It’s my last day,’’ he’d say. ‘‘Do you want issues. As Treasurer, she was an innovative for all of us. Donald Coleman cared deeply to say goodbye?’’ leader and a true public servant. As a col- about his family, his friends and the people f league, she was regarded as a trusted friend. who live in our Valley. His passion for people Everyday, she was a loving wife and mother. was an inspiration for all of us to try harder 75TH ANNIVERSARY OF THE Elizabeth Dailey will truly be missed. I ex- the next day. I know after seeing Don I always OTTAWA NATIONAL FOREST press my utmost condolences to her friends tried harder the next day. Ralph Waldo Emer- and family, and in a special way, would like to son once said, ‘‘The only way to have a friend HON. BART STUPAK thank Elizabeth’s husband Donald and daugh- is to be one.’’ I want to thank you, Donald OF MICHIGAN ter Nicole for sharing this very special lady Coleman, for having been a friend to those of IN THE HOUSE OF REPRESENTATIVES with the citizens of Stafford County. us, who had the good fortune to know you. Tuesday, February 14, 2006 f The following is a wonderful description of the life and times of Donald Coleman that ap- Mr. STUPAK. Mr. Speaker, I rise today to CELEBRATING BLACK HISTORY peared in the Fresno Bee: honor a northern Michigan natural phe- MONTH Donald Coleman, the face of The Fresno nomenon that will be celebrating its 75th Anni- Bee for many in far-flung rural communities versary of restoring the natural beauty and re- HON. HILDA L. SOLIS and a fixture in Fresno’s Tower District, died sources of Michigan’s Upper Peninsula (U.P.). of an apparent heart attack Tuesday morn- OF CALIFORNIA This year the Ottawa National Forest will cele- ing. He was 57. IN THE HOUSE OF REPRESENTATIVES ‘‘We are deeply saddened by the sudden brate 75 years of service but an endless im- pact on the vibrant habitat. Tuesday, February 14, 2006 death of reporter Donald Coleman. His good cheer and graciousness were well known During the early 1900’s, loggers flocked to Ms. SOLIS. Mr. Speaker, I rise to join our throughout many departments here, and he Michigan’s western U.P. to take advantage of Nation in honoring the many great contribu- had scores of friends in the community as what seemed to be an endless supply of pine tions of the African American Community by well. We will not only miss Don as a jour- trees. Used for fuel, paper products and the celebrating Black History Month. nalist, but also as a friend,’’ said Charlie Wa- timber necessary to build cities like Detroit and Overcoming enormous obstacles and racial ters, executive editor of The Fresno Bee. Chicago, the once lush, vast forests were gut- Funeral arrangements are pending. barriers, the African American community has Mr. Coleman’s Mercedes rolled into flower- ted and left as a desolate wasteland by the made vast contributions to all aspects of pots in front of the downtown Starbucks on late 1920’s. American society—music, literature, sports, Kern Street at 11:37 a.m. Police said they In 1931 the fate of that land would change education, science, business, and politics. We found him unconscious in the front seat. forever when President Herbert Hoover signed

VerDate Aug 31 2005 06:31 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00025 Fmt 0626 Sfmt 9920 E:\CR\FM\A14FE8.100 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS E154 CONGRESSIONAL RECORD — Extensions of Remarks February 14, 2006 a proclamation establishing the Ottawa Na- HONORING BILL FERGUSON GOLD FOR GREENSBORO’S JOEY tional Forest as a means of reviving the bar- CHEEK ren forest. Seventy-five years later, the res- toration of the Ottawa National Forest has HON. JOHN T. SALAZAR HON. HOWARD COBLE been described as a true success story. OF COLORADO OF NORTH CAROLINA Now managed for multiple uses, the Ottawa IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES National Forest provides many products and Tuesday, February 14, 2006 services based on its mission of caring for the Tuesday, February 14, 2006 land and serving people. The Ottawa National Mr. SALAZAR. Mr. Speaker, I rise today to Mr. COBLE. Mr. Speaker, when someone Forest also provides a great economic impact honor one of my constituents and a personal thinks sports and the Sixth District of North to the region. It supplies local communities friend, Bill Ferguson. Bill Ferguson, or Carolina, most thoughts turn toward basket- both with wood products as well as jobs. Addi- ‘‘Fergie’’ as friends like to call him has had a ball, baseball and auto racing. I think it is safe tionally, the Ottawa National Forest is an in- long and distinguished career as a rancher to say that not many people would imme- credible draw for tourism with such rec- and public servant in Ouray County, Colorado. diately leap to speed skating on ice. That’s no reational activities as hiking, camping, fishing, longer the case, however, thanks to Joey Bill Ferguson was raised in Colorado. In the hunting, boating and snowmobiling to name a Cheek of Greensboro. The Sixth District is late 1970s he settled in the town of Ridgway. few. now the speed skating capital of the world be- While Bill worked hard as a carpenter and his Mr. Speaker, the success of the Ottawa Na- cause Joey Cheek captured the gold medal in wife Liza as a waitress, they were able to the Winter Olympics in Turin, Italy, by winning tional Forest in revitalizing the cherished nat- save enough money to start their own busi- ural resource of Michigan’s western Upper Pe- the 500 meter long-track speed skating event. ness. The Park Nursery Garden Center soon Proving he is a true champion in every ninsula pine forests is a shining example of became the premier native nursery in the how effective a mission carried out over time sense of the word, immediately after he won area. Fergie also established a 120 acre ranch the gold medal, Joey Cheek announced he and the implementation of sensible manage- where he and Liza continue to raise 80–100 ment practices can make such a significant was donating the $25,000 he won from the head of cattle per year. Both his ranch and his U.S. Olympic Committee to refugee relief ef- impact in the world. nursery are a great asset to the county and I ask the United States House of Represent- forts in Africa. As reported in today’s edition of reflect Bill’s life long ethic of caring for the the Greensboro News & Record, Joey said his atives to join me in congratulating the Ottawa land he was part of. National Forest employees from past and thoughts are turning back to North Carolina. ‘‘I In the 1990’s, Bill was instrumental in devel- present on 75 years of living the proud tradi- am really excited about going home,’’ the oping a Geographical Information System pro- tion of the Forest Service mission and wish News & Record reported. ‘‘Honestly, it doesn’t gram that eventually became the Southwest them all the best in the future toward another even feel real. I’m so thrilled and so happy. Data Center. The Center is still a vital tool for successful 75 years. But it doesn’t seem to make sense. It’s like it land use planning and management for Ouray happened to someone else, and I’m just County, surrounding governments and local f happy to sort of receive the good will for it. I’m citizens in Southwest Colorado. just really excited and looking forward to the MR. BENJAMIN SOLOMON, LETTER In 1999, Bill was appointed to the Ouray next couple of days to maybe realizing I’m an TO THE EDITOR OF THE NEW Board of County Commissioners and won re- Olympic champion, will be forever, which is YORK TIMES election in November of 2000. Bill fought hard the coolest part of it.’’ for the best interest of his community through Cheek is scheduled to compete in the 1,000 the end of his term in 2005. He worked to pro- and 1,500 meter events next. In fact, the HON. JANICE D. SCHAKOWSKY tect Ouray County’s financial interest, preserve 1,000 meter race is considered to be Joey’s OF ILLINOIS the open government process and helped re- strongest event, so there may be more Olym- IN THE HOUSE OF REPRESENTATIVES store the people’s faith in government. As a pic hardware coming his way. Four years ago, Tuesday, February 14, 2006 county commissioner, Bill was noted for being he won the bronze medal in the Salt Lake City the primary force behind legislation to des- Olympics in the 1,000 meter race, so this gold Ms. SCHAKOWSKY. Mr. Speaker, I rise ignate Ouray County as a ‘‘Right to Farm’’ medal is not at all surprising to those who fol- today to bring to the attention of my col- community, preserving the rights of farmers low the sport. Joey Cheek has been a skater leagues a letter that was published in the No- and ranchers to conduct their business without since he was eight years old and used to vember 8th edition of the New York Times. interference. skate in roller rinks in Greensboro. At 15, he The letter was composed by my constituent— A water rights’ owner, Bill was appointed by switched to the ice and it’s been a straight line Mr. Benjamin Solomon of Evanston, Illinois. Ouray County for two terms to sit on the Colo- to the winner’s podium in Turin. Mr. Solomon writes about the critical impor- rado River Conservation District Board of Di- Joey’s mother is in Turin to witness family tance of openness in government, the serious rectors, which is the oldest and most pres- history first-hand, while his father is following nature of war, and the importance of honoring tigious water conservation district in Colorado. from his home office in Winston-Salem. Once our nation’s veterans. I hope that the words of As Ouray County’s representative to the Colo- all of the racing is completed, Joey hopes to Mr. Solomon, who is a veteran of World War rado River District, Bill worked on land and return to Greensboro where he plans to obtain II, are taken into serious consideration. water conservation projects for conservations a law degree and practice law in North Caro- [From the New York Times, Nov. 8, 2005] trusts. According to fellow board members, Bill lina. Whatever he decides to do, as he has KILLED, THEN EXPLOITED was always the best joke teller—a tough title shown both on and off the ice in Italy, Joey Cheek will be a champion and the Sixth Dis- To the Editor: to earn on a water district board, which is typi- trict of North Carolina is proud to call him one ‘‘The Mysterious Death of Pat Tillman,’’ cally filled with amateur comedians. Bill also by Frank Rich (column, Nov. 6), left me sick served on the Colorado River Water Users As- of our own. at heart. I am a World War II veteran in my sociation developing GIS-based maps for edu- f later 80’s who still thinks of his tent mates cational purposes. UT SOUTHWESTERN, MEDICAL who were lost to enemy action. With such a long list of accomplishments, it Pat Tillman, the Arizona Cardinals defen- CENTER AND BAYLOR HEALTH sive back who volunteered for the Army, was is easy to see that Bill is a leader in every CARE SYSTEM–DALLAS killed last year in Afghanistan, apparently sense of the word, but especially when it by friendly fire. The cynical exploitation of comes to water. Bill always has helped lead HON. EDDIE BERNICE JOHNSON his death and the lies surrounding it are a the fight to protect Western Slope water. I was OF TEXAS betrayal of this brave soldier and his family, honored to fight alongside him on many cru- IN THE HOUSE OF REPRESENTATIVES of all the others who made the same sacrifice cial battles to defend our rural way of life. in Iraq, and of the ideals of decency we claim I have been proud to know and work with Tuesday, February 14, 2006 for our nation. The thought that the responsible high- Bill Ferguson on issues that are important to Ms. EDDIE BERNICE JOHNSON of Texas. level officials in the Pentagon and the White the Western Slope of Colorado. He has been Mr. Speaker, I rise today to salute UT South- House are still in power frightens me. a great personal friend, colleague and mentor western Hospital and Baylor Health Care Sys- BENJAMIN SOLOMON, on many water issues and I am honored to tem, Dallas for their ranking in the top 5 per- Evanston, Ill., Nov. 6, 2005. represent him in Congress. cent of hospitals in the United States. Over

VerDate Aug 31 2005 06:31 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00026 Fmt 0626 Sfmt 9920 E:\CR\FM\A14FE8.105 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS February 14, 2006 CONGRESSIONAL RECORD — Extensions of Remarks E155 the years, both medical centers experienced In addition to being a world-class singer, he Columbus, Georgia. Under his guidance, the phenomenal growth, fueled by people with an also created children’s music, comedy songs Annual Black History Observance, which was extraordinary vision. UT Southwestern Hos- and parodies. started by the late former Congressman Rich- pital and Baylor Health Care System received Mr. Guerrero stood beside other great lead- ard Ray to improve his relationship with the high grades for quality patient outcomes, clin- ers in the community, among them Ce´sar E. African-American community, has grown into a ical excellence, patient safety, and women’s Cha´vez and Ruben Salazar, writing corridos celebration of Black history that pays tribute to health in a survey of 5,122 nonfederal hos- about the struggles and importance of social the individuals, organizations and institutions pitals in the United States, conducted by protest. Celebrating his bicultural roots, the that have made lasting contributions to the Health Grades Inc. UT Southwestern Medical music pioneer and activist was the first to history of Black Americans. Center is the seventh-largest hospital in Dal- record bilingual songs, becoming a symbol of Dr. Cook is married to the former Mamie las-Fort Worth providing inpatient hospital care hope and strength to his people. Richmond and has three children, Dr. Cathy L. to more than 90,000 people and oversees ap- Mr. Guerrero is credited by such artists as Cook, Dr. Henry L. Cook, II and Ms. Rosa proximately 2 million outpatient visits. Annu- Carlos Santana, Linda Ronstadt, and Los Zanders. His extraordinary legacy in dentistry ally, UT Southwestern Medical Center delivers Lobos for opening the door for Latino musi- continues through Cathy and Henry II, who more than 18,800 babies and provides $282 cians. continue the family dental practice. million in unreimbursed professional service in In 1996, Mr. Guerrero was awarded the Na- This Monday, I will have the honor of pre- Dallas and surrounding counties. Baylor tional Medal of the Arts by President and Mrs. senting Dr. Henry L. Cook, Sr. with the Legacy Health Care System, established in 1903 as Clinton. In 1980, the Smithsonian Institution Leadership Award and Congressman JOHN Texas Baptist Memorial Sanitarium, is the first declared him a ‘‘National Folk Treasure’’ and LEWIS, a true American hero and history health care system to provide supplemental he received a National Heritage Fellowship maker, will be the featured guest speaker. newborn screening for more than 30 inherited from the National Endowment for the Arts in However, here in this hallowed hall, I rise on metabolic diseases. Baylor provides exem- 1991. behalf of the people of the Second Congres- plary health care with over 2,554 beds, 15,000 Mr. Guerrero was inducted into the Tejano sional District and the State of Georgia to employees, and 3,300 physicians. Hall of Fame and was honored with Lifetime honor the extraordinary contributions that Dr. I am confident that UT Southwestern Med- Achievement Awards from the Mexican Cul- Cook has made to the African-American com- ical Center and Baylor Health Care System tural Institute representing the Mexican Gov- munity, the City of Columbus, the State of will continue to provide exemplary hospital ernment, Luis Valdez’s The Teatro Campesino Georgia and our great Country. His service is care to the North Texas community and sur- and Ricardo Montalban’s Nosotros Organiza- a model for all and we are grateful. round areas and remain at the pinnacle of tion among other prestigious groups. Los An- f Medical institutions committed to providing geles and his adopted home of Palm Springs, compassionate health care. On behalf of the California have declared ‘‘Lalo Guerrero Day’’ TRIBUTE TO MS. AURELIA thousands of Greater Dallas Metroplex resi- in those cities and proclamations have been GREENE dents who have benefited from UT South- awarded from numerous other cities and orga- western Medical Center and Baylor Health nizations. HON. JOSE´ E. SERRANO Care System, I congratulate them for their Mr. Guerrero is an American original. He is OF NEW YORK contribution for improving the health of the a son of this Nation, a Nation of diverse peo- IN THE HOUSE OF REPRESENTATIVES community through high quality patient care ple, cultures and music. Lalo Guerrero exem- Tuesday, February 14, 2006 and commitment to clinical excellence. plifies the richness of our country and the Mr. SERRANO. Mr. Speaker, it is with great f hope of all people. His story is a gift to us all. f pleasure that I rise during this month dedi- COMMENDING MR. EDUARDO cated to the celebration of African Americans ‘‘LALO’’ GUERRERO HONORING DR. HENRY L. COOK, SR. who have made great contributions to the world, to pay tribute to New York HON. RAU´ L M. GRIJALVA HON. SANFORD D. BISHOP Assemblywoman Aurelia Greene. Aurelia is a OF ARIZONA OF GEORGIA dedicated public servant who has worked tire- IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES lessly to uplift and empower her constituents. A native of the Bronx, Aurelia is a graduate Tuesday, February 14, 2006 Tuesday, February 14, 2006 of Livingston College at Rutgers University, Mr. GRIJALVA. Mr. Speaker, I rise today on Mr. BISHOP of Georgia. Mr. Speaker, this where she majored in community develop- Arizona’s 94th birthday to commend one of Ar- President’s Day marks the nineteenth annual ment. For the past 24 years she has served izona’s most talented sons, Mr. Eduardo Black History Observance in Columbus, Geor- as Assemblywoman for the 77th Assembly ‘‘Lalo’’ Guerrero, ‘‘the Father of Chicano gia, but it also affords us the opportunity to District, effectively using her urban planning Music.’’ recognize Dr. Henry L. Cook, Jr., who has skills to negotiate on behalf of her constituents From the beginning of his career when his chaired the event since 1988. for affordable housing, quality education, em- first group, Los Carlistas, represented Arizona For 35 years Dr. Cook has practiced den- ployment opportunities, affordable healthcare, at the New York World’s Fair of 1939 until his tistry in Columbus. A graduate of Tuskegee senior services, and improved transportation death last March, Lalo Guerrero symbolized University and Meharry Medical College, he and infrastructure. the best of American and Latino culture. Born has defined excellence in his field and con- As a member of the State Assembly, Aurelia December 24, 1916 in Barrio Viejo, the oldest tinues to serve on the Georgia Board of Den- is known for her strong work ethic and robust neighborhood of Tucson, Arizona, Mr. Guer- tistry, the Georgia Dental Association and the legislative agenda. She authored legislation, rero sang songs that spoke directly to the Chi- Georgia Medicaid Advisory Committee, among which became law in 2002, prohibiting preda- cano people of the southwest throughout the other boards and organizations. tory lending practices in relation to high cost course of his 60-year career. Yet beyond his chosen profession, Dr. Cook home loans. In addition, she was instrumental The child of immigrants, Mr. Guerrero attrib- has used his life in service to others and his in ensuring the passage of the Apprenticeship uted his musical talent to his mother community. A veteran of the United States Air bill, which provided funds for supplemental Concepcio´n, who taught him to play the guitar. Force, he has received countless distin- and related instruction to apprentices reg- He has been quoted modestly, ‘‘I only wrote guished service awards for his work. He has istered by the New York State Department of and sang about what I was.’’ By doing so, Mr. served as Chairman of the Board of the Minor- Labor. And in 1994, she was awarded a gold Guerrero became a voice for people who rare- ity Assistance Corporation, the Columbus helmet by the New York State Head Injury As- ly were shown in mainstream culture, a fact he Technical College, the Columbus Technical sociation for her bicycle helmet legislation. sang about in his famous song ‘‘No Chicanos Foundation, the Columbus Business Develop- As a result of her competence as a legis- on TV.’’ ment Center and the A.J. McClung YMCA and lator and considerable personal charm, Aurelia No other Chicano artist has come close to has served on the Muscogee Board of Edu- has been successful in rising through the writing and recording more great songs in vir- cation, the Metro Board of Health and the Co- ranks of the New York State Assembly. She tually every genre of Latin music, including lumbus Chamber of Commerce. previously served as Deputy Majority Leader salsa, norten˜a, banda, rancheras, boleros, As chairman of the Annual Black History and is the first woman to chair the Assembly corridos, cumbias, mambos, cha chas, socially Committee, Dr. Cook has cemented the leg- Standing Committee on Banks. In addition, relevant songs, swing, rock & roll and blues. acy of African Americans into the history of she recently became the first African American

VerDate Aug 31 2005 07:05 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00027 Fmt 0626 Sfmt 9920 E:\CR\FM\A14FE8.109 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS E156 CONGRESSIONAL RECORD — Extensions of Remarks February 14, 2006 to serve as Speaker Pro Tempore in the State Mr. Speaker, this country owes much of its TRIBUTE TO MS. GLORIA DENARD Assembly. greatness to the countless men and women of Mr. Speaker, earlier this week we said a color who silently contributed to the pages of HON. JOSE´ E. SERRANO final goodbye to Mrs. Coretta Scott King, a history. Today, I ask that my colleagues join OF NEW YORK woman of great resolve and patience, who me in saluting them for their efforts and in IN THE HOUSE OF REPRESENTATIVES helped to change the world. Today we honor paying tribute to the great leaders who stand Tuesday, February 14, 2006 a woman who stands on her shoulders. Work- upon their shoulders, such as Ms. Paula J. ing tirelessly to change the world in her own Martin. Mr. SERRANO. Mr. Speaker, it is with great pleasure that I rise during this month dedi- right, Ms. Greene is the hope and dream of f countless men and women of African descent cated to the celebration of African Americans who silently contributed to the pages of his- TRIBUTE TO MR. DENNIS TERRY who have made great contributions to the tory. As a result of the efforts of the likes of world, to pay tribute to Ms. Gloria Denard, an Mrs. King and Rosa Parks, Aurelia’s contribu- HON. JOSE´ E. SERRANO accomplished musician who has helped to im- prove the quality of life for the people of her tions to this nation have not gone unnoticed. OF NEW YORK community. For her unyielding spirit, and willingness to IN THE HOUSE OF REPRESENTATIVES serve others, I ask that my colleagues join me Born into a family of musicians and raised in paying tribute to Ms. Aurelia Greene and in Tuesday, February 14, 2006 in the Bedford-Stuyvesant neighborhood of honoring the great women upon whose shoul- Mr. SERRANO. Mr. Speaker, it is with great Brooklyn, Gloria was destined to be a great ders she stands. pleasure that I rise during this month dedi- musician herself. Under the tutelage of her f cated to the celebration of African Americans mother, she began her musical training at the who have made great contributions to the tender age of three. Later in life, she studied TRIBUTE TO MS. PAULA J. world, to pay tribute to Mr. Dennis Terry, an at Julliard where she concentrated on classical MARTIN individual who has worked throughout his life music and majored in voice with a piano ´ to fortify the bonds that unite the people of the minor. HON. JOSE E. SERRANO Bronx in order to help them find success. After Julliard, Gloria married and moved to OF NEW YORK Born in North Carolina, Dennis has been a East Harlem. She performed nationally and IN THE HOUSE OF REPRESENTATIVES Bronx resident since 1969. He is a graduate of internationally, including stints in Italy, Ber- Tuesday, February 14, 2006 Howard University in Washington, DC. Dennis muda, Greenland and Canada. Although she enjoyed great success as a is a retired manager from Lilco (now known as Mr. SERRANO. Mr. Speaker, it is with great musician, Gloria was consumed by the desire Keyspan) and is currently engaged in part- pleasure that I rise during this month, dedi- to improve the quality of life of the people in time consulting. cated to the celebration of African Americans her community. To that end, she established The extensive involvement of Dennis in the who have made great contributions to the Manna House Workshops to serve the social community and civic life of his borough and world, to pay tribute to Ms. Paula J. Martin, a and cultural needs of her talented neighbors. city is reflected in his numerous organizational woman who has worked vigorously to ensure Gloria, who by this time had two children, affiliations. These affiliations include: Mid- the less fortunate of her community have the worked without salary and maintained a staff Bronx Senior Citizen’s Council (chairperson); necessary skills to succeed in life. of six teachers. In 1970 she decided to pur- Paula serves as the Executive Director of Concourse Day Care Center (member); and chase a five story building and establish the the Harlem Center for Education (HCE), a HAC Family Services (member). Dennis’ past current home of Manna House Workshops. community based non-profit organization lo- affiliations include: Bronx Lebanon Hospital After 38 years of service, Manna House Work- cated in East Harlem, New York. Among its Center (former chairperson); The Bronx Health shops continues to serve as a bright beacon programs, HCE counts two federal TRIO Tal- Link (former chairperson); SOBRO (member, of hope in its community, providing training in ent Search projects and one Educational Op- Executive Committee); The New York Urban music and dance to all who enter their doors. portunity Center Project. Paula has been in- League (member and former chairman of the In 1980, Gloria conceived Music for Enter- volved in TRIO programs for over 32 years. Bronx Advisory Board); Community Planning tainment Education and Enlightenment During the 20 years she has served as Ex- Board 4 (former chairman); and the Mayor’s (MEEE), a jazz concert series featuring ecutive Director of HCE, the organization has Community Planning Board 4 Task Force. emerging and professional artists presented in grown from an operational budget of $137,000 Throughout his lifetime of community in- the Manna Mini Theatre. In addition, she has to one that is currently over $1,000,000. Her volvement, Dennis has sought to construct maintained her own vocal career and has re- unique ability to secure timely grants has al- collaborative platforms and organizational net- leased two CDs including ‘‘Come Feel the lowed the Harlem Center for Education to works that maximize the strength of the Things You Cannot Touch’’ and ‘‘Two for grow and reach more deserving young people Bronx’s multi-ethnic, multi-cultural, and reli- Jazz’’. An additional CD will be released in and adults. gious diversity. Dennis’ efforts have enabled March of this year. She also produces and Like most of the students with whom she the institutions that he has been affiliated with, hosts a cable show every month entitled ‘‘The works, Paula is a first generation college stu- and in many cases led, to define, develop, Best Kept Secret’’ on the Manhattan Neighbor- dent. A graduate of Hunter College High and deliver much needed services. He has fo- hood Network. School, she went on to receive a bachelor’s cused his public service in the areas of senior Mr. Speaker, it is impossible to discuss the degree from Syracuse University and a mas- and child care, healthcare, housing, employ- contributions of African Americans to the his- ter’s degree in developmental psychology from ment, and economic development. tory of the world and not mention the great in- Columbia University. This achievement alone Mr. Speaker, Dr. King once stated that ‘‘All fluence they have had upon music. Often is worthy of praise; but Paula did not stop men are caught in an inescapable network of great beauty comes from great pain and suf- there. She decided to dedicate her entire pro- mutuality.’’ This is a statement that Dennis un- fering. It was this sacred art that helped so fessional career to empowering individuals derstands all too well. The Bronx is a melting many find light in times of darkness and peace who shared her life struggles, thus helping to pot of ethnic and religious groups, none of in times of stifling oppression. From gospel to ensure that the cycle of poverty is broken. which can survive without the help of another. blues to jazz, and most recently, hip hop, Afri- Booker T . Washington once said: ‘‘Success Fortunately, the Bronx is home to individuals can Americans have not only provided the is to be measured not so much by the position like Dennis Terry, a man of vision and under- world with new forms of entertainment, but that one has reached in life as by the obsta- standing who has helped tear down the walls have found a way to provide insight into their cles which he has overcome.’’ Indeed, Paula that so often divide us. He has forced us to struggles and aspirations. A student of this art, has overcome great obstacles to achieve the see the great potential we can unleash when Gloria teaches music to the next generation, position that she now holds and would surely we work together. hoping to instill in them a sense of self con- be considered a great success by Washing- He stands on the shoulders of giants, yet he fidence and pride so that they may one day ton’s standards. However, what impresses me himself has become a giant, espousing a phi- share their gifts with the world. the most about this incredible woman is that losophy of tolerance and understanding in For her beautiful voice and spirit, and her she was not satisfied with achieving success order to uplift his fellow citizens. For his self- willingness to help others find their own voice, for herself. Like Washington, she has worked less attitude and unyielding spirit, I ask that I ask that my colleagues join me in paying trib- tirelessly to pull others up from the depths of my colleagues join me in honoring Mr. Dennis ute to Ms. Gloria Denard, and the countless despair, providing them with opportunities to Terry and the giants upon whose shoulders he African Americans who came before her and find success in their own lives. stands. enabled her to find her own voice.

VerDate Aug 31 2005 06:31 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00028 Fmt 0626 Sfmt 9920 E:\CR\FM\A14FE8.112 E14FEPT1 hmoore on PROD1PC68 with HMREMARKS Tuesday, February 14, 2006 Daily Digest Senate vote on the motion to invoke cloture on the bill Chamber Action were vitiated. Pages S1168–69 Routine Proceedings, pages S1135–S1320 USA PATRIOT Act Additional Reauthorizing Measures Introduced: Nine bills and two resolu- Amendments Act—Cloture Motion: Senate began tions were introduced, as follows: S. 2278–2286, and consideration of the motion to proceed to consider- S. Res. 371–372. Page S1175 ation of S. 2271, to clarify that individuals who re- Measures Passed: ceive FISA orders can challenge nondisclosure re- quirements, that individuals who receive national se- American Jewish History Month: Committee on curity letters are not required to disclose the name the Judiciary was discharged from further consider- of their attorney, that libraries are not wire or elec- ation of H. Con. Res. 315, urging the President to tronic communication service providers unless they issue a proclamation for the observance of an Amer- provide specific services. Pages S1169–70 ican Jewish History Month, and the resolution was A motion was entered to close further debate on then agreed to. Page S1320 the motion to proceed to consideration of the bill Caribbean-American Heritage Month: Com- and, in accordance with the provisions of Rule XXII mittee on the Judiciary was discharged from further of the Standing Rules of the Senate, a vote on clo- consideration of H. Con. Res. 71, expressing the ture will occur on Thursday, February 16, 2006. sense of Congress that there should be established a Page S1169 Caribbean-American Heritage Month, and the reso- A unanimous-consent agreement was reached pro- lution was then agreed to. Page S1320 viding for further consideration of the motion to Fairness in Asbestos Injury Resolution Act: Sen- proceed to consideration of the bill at approximately ate continued consideration of S. 852, to create a fair 10 a.m., on Wednesday, February 15, 2006. and efficient system to resolve claims of victims for Page S1320 bodily injury caused by asbestos exposure. Tax Relief Extension Reconciliation Act—Mo- Pages S1140–69 tions To Instruct Conferees: Senate completed Pending: consideration of the message of the House of Rep- Frist Motion to reconsider the vote by which the resentatives to accompany H.R. 4297, to provide for motion to waive (listed below) was rejected. reconciliation pursuant to section 201(b) of the con- Page S1169 current resolution on the budget for fiscal year 2006, During consideration of this measure today, Senate after taking action on the following motions to in- also took the following action: struct conferees proposed thereto: Pages S1135–40 By 58 yeas to 41 nays (Vote No. 21), three-fifths Adopted: of those Senators duly chosen and sworn, not having By 53 yeas to 47 nays (Vote No. 16), Grassley voted in the affirmative, Senate rejected the Specter Motion to Instruct Conferees to insist that the final motion to waive section 407, limitation on long- conference report include the ‘‘hold-harmless’’ relief term spending proposals, of H. Con. Res. 95, the from the individual alternative minimum tax in concurrent resolution on the budget for fiscal year 2006 (sections 106 and 107 of the amendment 2006, with respect to the bill and Frist (for Specter/ passed by the Senate) to protect middle class families Leahy) Amendment No. 2746 (listed above). Subse- and includes an extension of lower tax rates on cap- quently, the Ensign point of order against the bill ital gains and dividends (based on section 203 of the is sustained, pursuant to section 312(f) of the Con- bill passed by the House of Representatives) to pro- gressional Budget Act, the bill is recommitted to the tect tax cuts for middle class families. Page S1137 Committee on the Judiciary; provided further, that DeWine Motion to Instruct Conferees to insist the vote on the motion to invoke cloture on Frist that the final conference report accept the veterans’ (for Specter/Leahy) Amendment No. 2746, and the mortgage bonds expansion provisions contained in D92

VerDate Aug 31 2005 07:08 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00001 Fmt 0627 Sfmt 0627 E:\CR\FM\D14FE6.REC D14FEPT1 hmoore on PROD1PC68 with HMDIGEST February 14, 2006 CONGRESSIONAL RECORD — DAILY DIGEST D93 section 303 of the bill as passed by the House of Reid (for Menendez) Motion to Instruct Conferees Representatives with such revisions as are necessary to insist that the final conference report include the to provide veterans in all 50 States with access to Senate passed ‘‘hold-harmless’’ relief from the indi- lower-rate mortgages. Page S1138 vidual alternative minimum tax (AMT) in 2006, and Wyden Motion to Instruct Conferees to insist that does not include the extension of lower tax rates on the final conference report include a provision that capital gains and dividends. Pages S1136, S1138 repeals accelerated depreciation for geologic and geo- Stabenow Motion to Instruct Conferees to insist physical costs for oil and gas exploration by the 5 that the final conference report include a permanent major oil companies. Page S1138 extension of the credit for increasing research activi- Grassley (for Talent/Snow/Lincoln) Motion to In- ties, and to reject any extension of the tax rate for struct Conferees to insist that the final conference re- capital gains and dividends which does not expire port include a permanent extension of the modifica- until 2009. Pages S1136, S1138 tions to the child tax credit made by the Economic Grassley (for Lott) Motion to Instruct Conferees to Growth and Tax Relief Reconciliation Act of 2001 insist that the final conference report include the re- and the Jobs and Growth Tax Relief Reconciliation peal of the individual alternative minimum tax Act of 2003. Page S1138 (based on sections 106 and 107 of the amendment By 75 yeas to 25 nays (Vote No. 19), Grassley passed by the Senate). Pages S1136, S1138 (for Hutchison) Motion to Instruct Conferees to in- Grassley (for Santorum) Motion to Instruct Con- sist that the final conference report include a perma- ferees to insist that the final conference report in- nent extension of the election to deduct State and clude a permanent extension of the above-the-line local general sales taxes (based on section 105 of the deduction for tuition and fees (based on section 103 amendment passed by the Senate). Page S1139 of the amendment passed by the Senate). Rejected: Pages S1136, S1138 By 47 yeas to 53 nays (Vote No. 17), Kennedy Grassley Motion to Instruct Conferees to insist Motion to Instruct Conferees to reject the extension that the final conference report ensure that in 2009 of the capital gains and dividends rate reduction and 2010, the international competitiveness of the contained in section 203 of the bill as passed by the United States in attracting capital investment, and House of Representatives. Page S1137 therefore job creation, is not weakened further by a By 45 yeas to 55 nays (Vote No. 18), Reed Mo- higher combined corporate and individual income tion to Instruct Conferees to insist that the final tax rate on corporate and capital income as a result conference report include funding to strengthen of a higher dividend tax rate. Pages S1136, S1138 America’s military contained in title VI of the Sen- Schumer Motion to Instruct Conferees to insist ate amendment instead of any extension of the tax that the final conference report include the Senate- cuts for capital gains and dividends, which does not passed provision to extend the above-the-line deduc- expire until 2009, contained in section 203 of the tion for tuition and fees through December 31, 2009 bill as passed by the House of Representatives. (section 103), before it includes the House-passed ex- Page S1138 tension of lower tax rates on capital gains and divi- By 46 yeas to 54 nays (Vote No. 20), Lautenberg dends (section 203), given budget constraints, noting Motion to Instruct Conferees to insist that the final that a conference report which maintains the tuition conference report does not increase the national debt deduction will provide needed tax relief to more of the United States. Page S1139 than 4,000,000 American families each year that are Withdrawn: struggling to keep pace with rising tuition costs. Obama Motion to Instruct Conferees to insist that Pages S1136, S1138 the final conference report include tax relief for the The Chair was authorized to appoint the following most vulnerable members of our society, including the low-income victims of Hurricane Katrina and conferees on the part of the Senate: Senators Grass- children in families that are too poor to benefit fully ley, Kyl, and Baucus. Page S1139 from the refundable child tax credit. Message From the President: Senate received the Pages S1136, S1138 following message from the President of the United Hatch Motion to Instruct Conferees to insist that States: the final conference report include a permanent ex- Transmitting, pursuant to law, a report prepared tension of the credit for increasing research activities by the National Science Board entitled ‘‘Science and (based on section 108 of the amendment passed by Engineering Indicators—2006’’; which was referred the Senate), in order to improve American competi- to the Committee on Commerce, Science, and Trans- tiveness. Pages S1136, S1138 portation. (PM–40) Page S1173

VerDate Aug 31 2005 07:08 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00002 Fmt 0627 Sfmt 0627 E:\CR\FM\D14FE6.REC D14FEPT1 hmoore on PROD1PC68 with HMDIGEST D94 CONGRESSIONAL RECORD — DAILY DIGEST February 14, 2006 Nominations Received: Senate received the fol- the nominees testified and answered questions in lowing nominations: their own behalf. Jon T. Rymer, of Tennessee, to be Inspector Gen- BROADBAND eral, Federal Deposit Insurance Corporation. Jerome A. Holmes, of Oklahoma, to be United Committee on Commerce, Science, and Transportation: State District Judge for the Northern District of Committee concluded a hearing to examine issues of Oklahoma. municipal broadband and the role of Federal, State Milan D. Smith, Jr., of California, to be United and local government in the digital world, after re- States Circuit Judge for the Ninth Circuit. ceiving testimony from Robert K. Sahr, South Da- Frank D. Whitney, of North Carolina, to be kota Public Utilities Commission, Pierre; Dianne United States District Judge for the Western Dis- Munns, Iowa Utilities Board, on behalf of the Na- trict of North Carolina. Page S1320 tional Association of Regulatory Utility Commis- sioners, and John R. Perkins, National Association of Executive Communications: Pages S1173–75 State Utility Consumer Advocates, both of Des Additional Cosponsors: Pages S1175–76 Moines, Iowa; Michael F. Altschul, CTIA—The Statements on Introduced Bills/Resolutions: Wireless Association, and Donald B. Berrryman, Pages S1176–80 Earthlink, Inc., both of Washington, D.C.; Douglas A. Boone, Premier Communications, Sioux City, Additional Statements: Pages S1172–73 Iowa; and Dianah L. Neff, Philadelphia Chief Infor- Amendments Submitted: Pages S1180–S1319 mation Officer, Philadelphia, Pennsylvania. Notices of Hearings/Meetings: Page S1319 CANADIAN SOFTWOOD LUMBER Authorities for Committees to Meet: Committee on Commerce, Science, and Transportation: Sub- Pages S1319–20 committee on Trade, Tourism, and Economic Devel- Record Votes: Six record votes were taken today. opment concluded a hearing to examine the eco- (Total—21) Pages S1137, S1138, S1139, S1168–69 nomic impacts of the Canadian softwood lumber dis- pute on U.S. industries, focusing on the Administra- Adjournment: Senate convened at 9:45 a.m., and tion’s efforts to negotiate a settlement to the long- adjourned at 7:19 p.m., until 9:30 a.m., on Wednes- standing trade dispute regarding softwood lumber day, February 15, 2006. (For Senate’s program, see from Canada, after receiving testimony from Franklin the remarks of the Majority Leader in today’s Record L. Lavin, Under Secretary of Commerce for Inter- on page S1320.) national Trade; Susan Schwab, Deputy United States Trade Representative, Office of the United States Committee Meetings Trade Representative; Steve Swanson, The Swanson Group, Glendale, Oregon, on behalf of the Coalition (Committees not listed did not meet) for Fair Lumber Imports; Bill Kluting, Western Council of Industrial Workers, Monmouth, Oregon; DEFENSE AUTHORIZATION and Barry Rutenberg, Barry Rutenberg Homes, Gainesville, Florida, on behalf of the National Asso- Committee on Armed Services: Committee concluded a ciation of Home Builders. hearing to examine the defense authorization request for fiscal year 2007 and the future years defense pro- OLDER AMERICANS ACT gram, after receiving testimony from Frances J. Har- Committee on Health, Education, Labor, and Pensions: vey, Secretary, and General Peter J. Schoomaker, Subcommittee on Retirement Security and Aging USA, Chief of Staff, both of the United States Army; met to discuss the reauthorization of the Older and Lieutenant General H. Steven Blum, Chief of Americans Act, receiving testimony from Jo Reed, the National Guard Bureau. AARP, Howard Bedlin, National Council on Aging, Laura Howard, National Association of Nutrition NOMINATIONS and Aging Service Programs, Patrick Flood, National Committee on Banking, Housing, and Urban Affairs: Association of State Union on Aging, Sany Committee concluded a hearing to examine the Markwood, National Association of Area Agencies nominations of Randall S. Kroszner, of New Jersey, on Aging, Karyne Jones, National Caucus and Cen- and Kevin M. Warsh, of New York, who was intro- ter on Black Aged, Inc., Bob Blancato, Matz, duced by Senator Schumer, each to be a Member of Blancato and Associates, Inc., on behalf of the Elder the Board of Governors of the Federal Reserve Sys- Justice Coalition, Barbara B. Kennelly, Leadership tem, and Edward P. Lazear, of California, to be a Council of Aging Organizations, and George J. Member of the Council of Economic Advisers, after Kourpias, Alliance for Retired Americans, all of

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Washington, D.C.; Enid A. Borden, Meals on Service, Department of Health and Human Services; Wheels Association of America, Alexandria, Vir- Darla Marburger, Deputy Assistant Secretary for Pol- ginia; Suzanne Mintz, National Family Caregivers icy, Office of Elementary and Secondary Education, Association, Kensington, Maryland; Clayton S. Fong, and Tom Corwin, Director of Division of Elementary National Asian Pacific Center on Aging, Seattle, and Secondary Vocational Analysis, both of the De- Washington; and Carmela G. Lacayo, National Asso- partment of Education; Orlando J. Cabrera, Assistant ciation for Hispanic Elderly, Pasadena, California. Secretary, Office of Public and Indian Housing, De- Subcommittee expects to discuss this and related partment of Housing and Urban Development; Re- issues again. gina B. Schofield, Assistant Attorney General, Office BUDGET: INDIAN PROGRAMS of Justice Programs, Department of Justice; Joseph Committee on Indian Affairs: Committee concluded an A. Garcia, National Congress of American Indians, oversight hearing to examine the President’s pro- Kathleen Kitcheyan, National Indian Health Board, posed budget request for fiscal year 2007 for Indian Cheryl Parish and Gary Gordon, both of National programs, after receiving testimony from James American Indian Housing Council, and Gary L. Ed- Cason, Associate Deputy Secretary, and Ross Swim- wards, National Native American Law Enforcement mer, Special Trustee for American Indians, both of Association, all of Washington, D.C.; and Ryan Wil- the Department of the Interior; Charles W. Grim, son, National Indian Education Association, Alexan- Assistant Surgeon General, Director, Indian Health dria, Virginia. h House of Representatives Speaker: Read a letter from the Speaker wherein he Chamber Action appointed Representative Issa to act as Speaker Pro Public Bills and Resolutions Introduced: 14 pub- Tempore for today. Page H227 lic bills, H.R. 4740–4753; and 7 resolutions, H. Message From the Clerk: Read a letter from the Con. Res. 339–340 and H. Res. 673–677 were in- Clerk notifying the House that she received a mes- troduced. Pages H272–73 sage from the President on Monday, February 13, Additional Cosponsors: Pages H274–75 containing the Economic Report of the President. Reports Filed: Reports were filed on Friday, Feb- Pages H229–30 ruary 10th, as follows: Presidential Message: Read a message from the H. Res. 593, directing the Secretary of State, the President wherein he transmitted the 2006 Eco- Secretary of Defense, the Secretary of Homeland Se- nomic Report of the President—referred to the Joint curity, and the Attorney General, and requesting the Economic Committee and ordered printed (H. Doc. President, to provide certain information to the 109–78). Page H230 House of Representatives relating to extraordinary Commission Appointment: Read a letter from the rendition of certain foreign persons, adversely (H. Committee on Ways and Means Ranking Minority Rept. 109–374); Member, Mr. Rangel, whereby he appointed to the H. Res. 624, requesting the President of the National Surface Transportation Infrastructure Fi- United States and directing the Secretary of State to nancing Commission the following individuals: Mr. provide to the House of Representatives certain doc- Elliot (Lee) Sander, Director of the Rudin Center for uments in their possession relating to United States Transportation Policy and Management at New York policies under the United Nations Convention University, and Senior Vice President and Director Against Torture and Other Cruel, Inhuman or De- of Strategic Development at DMJM Harris, of New grading Treatment or Punishment and the Geneva York City, New York; and Mr. Craig Lentzsch, CEO Conventions, adversely (H. Rept. 109–375); and of Coach USA and KBUS Holdings, of Dallas, H. Res. 642, requesting the President and direct- Texas. Page H231 ing the Secretary of State to provide to the House of Representatives certain documents in their posses- Suspensions: The House agreed to suspend the rules sion relating to the Secretary of State’s trip to Eu- and pass the following measures: rope in December 2005, adversely (H. Rept. Expressing the Sense of Congress regarding the 109–376). Page H272 contribution of the USO to the morale and welfare

VerDate Aug 31 2005 07:08 Feb 15, 2006 Jkt 049060 PO 00000 Frm 00004 Fmt 0627 Sfmt 0627 E:\CR\FM\D14FE6.REC D14FEPT1 hmoore on PROD1PC68 with HMDIGEST D96 CONGRESSIONAL RECORD — DAILY DIGEST February 14, 2006 of our servicemen and women of our armed forces Quorum Calls—Votes: Two yea-and-nay votes de- and their families: H. Con. Res. 322, amended, to veloped during the proceedings of today and appear express the Sense of Congress regarding the con- on pages H239 and H239–40. There were no tribution of the USO to the morale and welfare of quorum calls. our servicemen and women of our armed forces and Adjournment: The House met at 2 p.m. and ad- their families, by a yea-and-nay vote of 407 yeas journed at 11:55 p.m. with none voting ‘‘nay’’, Roll No. 8; Pages H231–32 H238–39 Committee Meetings Agreed to amend the title so as to read: ‘‘Express- ing the appreciation of Congress for the contribu- MEMBERS’ DAY tions of the United Service Organizations, Incor- Committee on the Budget: Held a hearing on Members’ porated (the USO), to the morale and welfare of the Day. Testimony was heard from Representatives members of the Armed Forces and their families.’’. Neugebauer, King of Iowa, Ehlers, Holt, McMorris, Page H239 Hinojosa, Tiahrt, Young of Alaska, Regula, Fossella, McGovern, Capito, Carson, Bass, Bishop of New Supporting the goals and ideals of a Day of York, Kelly, Kucinich, Miller of North Carolina, Hearts, Congenital Heart Defect Day in order to Kennedy of Minnesota, Brown-Waite of Florida, increase awareness about congenital heart defects: Salazar, Hayes, Fitzpatrick of Pennsylvania, and H. Res. 629, to support the goals and ideals of a Mica. Day of Hearts, Congenital Heart Defect Day in order POST 9/11—NATIONAL SECURITY to increase awareness about congenital heart defects; WHISTLEBLOWERS Pages H234–36 Committee on Government Reform: Subcommittee on Designating the facility of the United States National Security, Emerging Threats, and Inter- Postal Service located at 320 High Street in Clin- national Relations held a hearing entitled ‘‘National ton, Massachusetts, as the ‘‘Raymond J. Salmon Security Whistleblowers in the post-9/11 Era: Lost Post Office’’: H.R. 4152, to designate the facility of in a Labyrinth and Facing Subtle Retaliation.’’ Testi- the United States Postal Service located at 320 High mony was heard from James McVay, Deputy Special Street in Clinton, Massachusetts, as the ‘‘Raymond J. Counsel, Office of Special Counsel; Glenn A. Fine, Salmon Post Office’’; and Pages H236–237 Inspector General, Department of Justice; Gregory Designating the facility of the United States H. Friedman, Inspector General, Department of En- Postal Service located at 57 Rolfe Square in Cran- ergy; Thomas Gimble, Acting Inspector General, ston, Rhode Island, shall be known and designated Department of Defense; and public witnesses. as the ‘‘Holly A. Charette Post Office’’: S. 1989, to RESOLUTION—SUPPORTING REPUBLIC OF designate the facility of the United States Postal BELARUS EFFORTS FOR DEMOCRACY Service located at 57 Rolfe Square in Cranston, Committee on International Relations: Subcommittee on Rhode Island, shall be known and designated as the Europe and Emerging Threats approved for full ‘‘Holly A. Charette Post Office’’, by a yea-and-nay Committee action the following resolutions: H. Res. vote of 408 yeas with none voting ‘‘nay’’, Roll No. 673, Expressing support for the efforts of the people 9;—clearing the measure for the President. of the Republic of Belarus to establish a full democ- Pages H237–40 racy, the rule of law, and respect for human rights Recess: The House recessed at 3:10 p.m. and recon- and urging the Government of Belarus to conduct a vened at 6:30 p.m. Page H238 free and fair presidential election on March 19, 2006; and H. Res. 578, Concerning the government Presidential Message: Read a message from the of Romania’s ban on intercountry adoptions and the President wherein he transmitted a report prepared welfare of orphaned or abandoned children in Roma- by the National Science Board entitled, ‘‘Science and nia. Engineering Indicators—2006’’;—referred to the CHINESE INFLUENCE ON U.S. FOREIGN Committee on Science. Page H238 POLICY Senate Message: Messages received from the Senate Committee on International Relations: Subcommittee on by the Clerk and subsequently presented to the Oversight and Investigations held a hearing on Chi- House today appear on pages H238 and H245. nese Influence on U.S. Foreign Policy through U.S. Senate Referrals: S. 2166 was referred to the Com- Educational Institutions, Multilateral Organizations mittee on House Administration and S. 2275 was and Corporate America. Testimony was heard from held at the desk. Page H231 public witnesses.

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Testimony was heard from Ron Aument, partment of Energy, and to provide support for mathe- Deputy Under Secretary, Benefits, Department of matics and science education at all levels through the re- Veterans Affairs; and representatives of veterans orga- sources available through the Department of Energy, in- nizations. cluding at the National Laboratories, 10:30 a.m., SD–366. VETERANS HEALTH ADMINISTRATION Subcommittee on Public Lands and Forests, to hold hear- BUDGET ings to review the progress made on the development of interim and long-term plans for use of fire retardant air- Committee on Veterans’ Affairs: Subcommittee on craft in Federal wildfire suppression operations, 2:30 Health held an oversight hearing on the Department p.m., SD–366. of Veterans Affairs Fiscal Year 2007 budget request Committee on Environment and Public Works: business for the Veterans Health Administration. Testimony meeting to consider the nominations of Terrence L. was heard from Jonathan B. Perlin, M.D., Under Bracy, of Virginia, to be a Member of the Board of Trust- Secretary, Health, Department of Veterans Affairs; ees of the Morris K. Udall Scholarship and Excellence in and representatives of veterans organizations. National Environmental Policy Foundation, and Dennis Bottorff, Susan Richardson Williams, and William B. f Sansom, all of Tennessee, Robert M. Duncan, of Ken- NEW PUBLIC LAWS tucky, Howard A. Thrailkill, of Alabama, and Donald R. DePriest, of Mississippi, each to be a Member of the (For last listing of Public Laws, see DAILY DIGEST, p. D88) Board of Directors of the Tennessee Valley Authority, H.R. 4519, to amend the Public Health Service 9:30 a.m., SD–628. Act to extend funding for the operation of State Full Committee, to hold hearings to examine the Presi- high risk health insurance pools. Signed on February dent’s proposed budget request for fiscal year 2007 for 10, 2006. (Public Law 109–172) EPA, 9:35 a.m., SD–628. Committee on Foreign Relations: to hold hearings to exam- f ine the President’s proposed budget request for fiscal year COMMITTEE MEETINGS FOR WEDNESDAY, 2007 for foreign affairs; and, if a quorum is present, con- FEBRUARY 15, 2006 sider and vote on the nominations of Claudia A. McMurray, of Virginia, to be Assistant Secretary of State (Committee meetings are open unless otherwise indicated) for Oceans and International Environmental and Scientific Affairs, Bradford R. Higgins, of Connecticut, to be As- Senate sistant Secretary for Resource Management and Chief Fi- Committee on Appropriations: Subcommittee on Legisla- nancial Officer, Department of State, Jackie Wolcott tive Branch, to resume hearings to examine the progress Sanders, of Virginia, to be U.S. Alternate Representative of construction on the Capitol Visitor Center, 10:30 a.m., for Special Political Affairs in the United Nations, with SD–138. the rank of Ambassador, and to be U.S. Alternate Rep- Committee on Armed Services: to hold hearings to examine resentative to the Sessions of the General Assembly of the the nominations of Preston M. Geren, of Texas, to be United Nations during her tenure of service as U.S. Al- Under Secretary of the Army, Michael L. Dominguez, of ternate Representative for Special Political Affairs in the Virginia, to be Deputy Under Secretary of Defense for United Nations, Janet Ann Sanderson, of Arizona, to be Personnel and Readiness, James I. Finley, of Minnesota, Ambassador to the Republic of Haiti, Bernadette Mary to be Deputy Under Secretary of Defense for Acquisition Allen, of Maryland, to be Ambassador to the Republic of and Technology, and Thomas P. D’Agostino, of Mary- Niger, Patricia Newton Moller, of Arkansas, to be Am- land, to be Deputy Administrator for Defense Programs, bassador to the Republic of Burundi, Steven Alan Brown- National Nuclear Security Administration, 9:30 a.m., ing, of Texas, to be Ambassador to the Republic of SD–106. Uganda, Robert Weisberg, of Maryland, to be Ambas- Committee on Banking, Housing, and Urban Affairs: to sador to the Republic of Congo, Michael W. Michalak, hold hearings to examine rebuilding needs in Hurricane of Michigan, for the rank of Ambassador during his ten- Katrina-impacted areas, 10 a.m., SD–538. ure of service as United States Senior Official to the Asia- Committee on the Budget: to hold hearings to examine Pacific Economic Cooperation Forum, Janice L. Jacobs, of understanding the causes and solutions to addressing the Virginia, to be Ambassador to the Republic of Senegal, Federal tax gap, 10 a.m., SD–608. and to serve concurrently and without additional com- Committee on Commerce, Science, and Transportation: to pensation as Ambassador to the Republic of Guinea- hold hearings to examine video franchising, 10 a.m., Bissau, Jeanine E. Jackson, of Wyoming, to be Ambas- SD–562. sador to Burkina Faso, James D. McGee, of Florida, to

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serve concurrently and without additional compensation Committee on Energy and Commerce, hearing entitled ‘‘The as Ambassador to the Union of Comoros; Kristie A. Administration’s FY ’07 Health Care Priorities,’’ 2 p.m., Kenney, of Virginia, to be Ambassador to the Republic 2123 Rayburn. of the Philippines, Gary A. Grappo, of Virginia, to be Subcommittee on Commerce, Trade, and Consumer Ambassador to the Sultanate of Oman, Patricia A. Protection, hearing entitled ‘‘The Law and Economics of Butenis, of Virginia, to be Ambassador to the People’s Interchange Fees,’’ 10 a.m., 2123 Rayburn. Republic of Bangladesh, Donald T. Bliss, of Maryland, Committee on Financial Services, hearing to receive the for the rank of Ambassador during his tenure of service Federal Reserve Board’s semiannual monetary policy re- as Representative of the United States of America on the port, 10 a.m., 2128 Rayburn. Council of the International Civil Aviation Organization, Committee on Government Reform, Subcommittee on En- Ben S. Bernanke, to be United States Alternate Governor ergy and Resources, hearing entitled ‘‘Meythol Bromide: of the International Monetary Fund, International Mone- Are U.S. Interests Being Served by the Critical User Ex- tary Fund; and 2 Foreign Service Officer promotion lists emption Process?’’ 2 p.m., 2203 Rayburn. received in the Senate on December 13 and December 14, Subcommittee on Federalism and the Census, hearing 2005, respectively, 9:45 a.m., SH–216. entitled ‘‘Living in America: Is Our Public Housing Sys- Committee on Health, Education, Labor, and Pensions: Sub- tem Up to the Challenges of the 21st Century?’’ 2 p.m., committee on Employment and Workplace Safety, to 2247 Rayburn. Committee on Homeland Security, Subcommittee on Eco- hold hearings to examine communication and mine safety nomic Security, Infrastructure Protection and technology issues, 10 a.m., SD–430. Cybersecurity, hearing entitled ‘‘The President’s Fiscal Committee on Homeland Security and Governmental Affairs: Year Budget: Coast Guard Programs Impacting Maritime to continue hearings to examine Hurricane Katrina re- Border Security,’’ 5 p.m., 311 Cannon. sponse issues, focusing on the Homeland Security Depart- Subcommittee on Emergency Preparedness, Science, ment’s preparation and response, 11:15 a.m., SD–342. and Technology, hearing entitled ‘‘The State of Interoper- Committee on the Judiciary: to hold hearings to examine able Communications: Perspectives from the Field,’’ 10 the nominations of Stephen G. Larson, to be United a.m., 311 Cannon. States District Judge for the Central District of Cali- Subcommittee on Intelligence, Information Sharing, fornia, Jack Zouhary, to be United States District Judge and Terrorism Risk Assessment, hearing entitled ‘‘The for the Northern District of Ohio, and John F. Clark, of President’s Proposed FY07 Budget for the Department of Virginia, to be Director of the United States Marshals Homeland Security: The Office of Intelligence and Anal- Service, Department of Justice, 10 a.m., SD–226. ysis,’’ 2:30 p.m., 311 Cannon. Select Committee on Intelligence: to receive a closed brief- Committee on International Relations, Subcommittee on ing regarding certain intelligence matters, 2:30 p.m., Africa, Global Human Rights and International Oper- SH–219. ations and the Subcommittee on Asia and the Pacific, hearing entitled ‘‘The Internet in China: A Tool for Free- House dom or Suppression?’’ 10 a.m., 2172 Rayburn. Committee on Appropriations, Subcommittee on Agri- Committee on the Judiciary, to mark up the following culture, Rural Development, Food and Drug Administra- measures: H. Res. 643, Directing the Attorney General tion, and Related Agencies, on USDA, 9:30 a.m., 2362 to submit to the House of Representatives all documents Rayburn. in the possession of the Attorney General relating to Subcommittee on Homeland Security, on DHS Man- warrantless electronic surveillance of telephone conversa- tions and electronic communications of persons in the agement and Operations, 2:30 p.m., 2359 Rayburn. United States conducted by the National Security Agen- Subcommittee on Interior, Environment, and Related cy; H. Res. 644, Requesting the President and directing Agencies, an oversight hearing on Woodrow Wilson the Attorney General to transmit to the House of Rep- International Center for Scholars, 10 a.m., B–308 Ray- resentatives not later than 14 days after the date of the burn. adoption of this resolution documents in the possession of Subcommittee on Military Quality of Life, Veterans those officials relating to the authorization of electronic Affairs, and Related Agencies, on DOD Budget Over- surveillance of citizens of the United States without court view, 10 a.m., H–143 Capitol, and on Quality of Life— approved warrants; H.R. 2829, Office of National Drug Senior Enlisted, 1:30 p.m., 2358 Rayburn. Control Policy Reauthorization Act of 2005; H.R. 3505, Committee on Armed Services, hearing on the Fiscal Year Financial Services Regulatory Relief Act of 2005; H. Con. 2007 National Defense Authorization budget request Res. 316, Raising awareness and encouraging prevention from the Department of the Army, 10 a.m., 2118 Ray- of stalking by establishing January 2006 as ‘‘National burn. Stalking Awareness Month;’’ H. Res. 357, Honoring Jus- Subcommittee on Strategic Forces and the Sub- tice Sandra Day O’Connor; and H.R. 4709, Law Enforce- committee on Terrorism, Unconventional Threats and Ca- ment and Phone Privacy Protection Act of 2006, 10 a.m., pabilities, joint hearing on the Able Danger program, 2141 Rayburn. 2:30 p.m., 2118 Rayburn. Subcommittee on Crime, Terrorism, and Homeland Se- Committee on the Budget, hearing on Domestic Entitle- curity, to mark up H.R. 1704, Second Chance Act of ments and the Federal Budget, 2 p.m., 210 Cannon. 2005; followed by an oversight hearing of the Bureau of

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Alcohol, Tobacco, Firearms and Explosives (BATFE) Part Committee on Veterans’ Affairs, hearing on annual legisla- 1: Gun Show Enforcement, 4 p.m., 2141 Rayburn. tive agenda, views and priorities for veterans organiza- Committee on Resources, Subcommittee on National tions, 10:30 a.m., 334 Cannon. Parks, oversight hearing entitled ‘‘The National Park Committee on Ways and Means, to continue hearings on Service 2006 Draft Management Policies and proposed President Bush’s Budget proposals for fiscal year 2007; changes to Director’s Order 21,’’ 2 p.m., 1324 Long- and to consider Draft Views and Estimates for submission worth. to the Committee on the Budget; 10:30 a.m., and to Committee on Science, hearing on An Overview of the hold a hearing on President Bush’s trade agenda, 1:30 Federal R&D Budget for Fiscal Year 2007, 10 a.m., 2318 p.m., 1100 Longworth. Rayburn. Permanent Select Committee on Intelligence, Subcommittee Committee on Transportation and Infrastructure, Sub- on Oversight, executive, Briefing on The Intelligence committee on Aviation, oversight hearing on Commercial Value of Interrogation, 12 p.m., H–405 Capitol. Jet Fuel Supply: Impact and Cost on the U.S. Airline In- dustry, 10 a.m., 2167 Rayburn. Select Bipartisan Committee to Investigate the Preparation for Subcommittee on Highways, Transit and Pipelines, and Response to Hurricane Katrina, to approve the Select oversight hearing on How the FY 2007 Budget Proposal Committee Report, 2 p.m., 2154 Rayburn. Impacts SAFETEA LU, 2 p.m., 2167 Rayburn.

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Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 9:30 a.m., Wednesday, February 15 10 a.m., Wednesday, February 15

Senate Chamber House Chamber Program for Wednesday: After the transaction of any Program for Wednesday: Consideration of suspensions: morning business (not to extend beyond 30 minutes), (1) H. Con. Res. 300—Paying tribute to Shirley Horn in Senate will continue consideration of the motion to pro- recognition of her many achievements and contributions ceed to consideration of S. 2271, USA PATRIOT Act to the world of jazz and American culture; (2) S. 2275— Additional Reauthorizing Amendment Act. National Flood Insurance Program Enhanced Borrowing Authority Act of 2006; and (3) S. Con. Res. 79—A con- current resolution expressing the sense of Congress that no United States assistance should be provided directly to the Palestinian Authority if any representative political party holding a majority of parliamentary seats within the Palestinian Authority maintains a position calling for the destruction of Israel.

Extensions of Remarks, as inserted in this issue

HOUSE Grijalva, Rau´ l M., Ariz., E139, E141, E155 Roybal-Allard, Lucille, Calif., E146 Higgins, Brian, N.Y., E129, E132, E135, E136, E137 Ruppersberger, C.A. Dutch, Md., E141 Berman, Howard L., Calif., E144 Holden, Tim, Pa., E149 Sa´ nchez, Linda T., Calif., E130, E134, E136 Bishop, Sanford D., Jr., Ga., E155 Israel, Steve, N.Y., E140 Salazar, John T., Colo., E154 Blackburn, Marsha, Tenn., E143 Johnson, Eddie Bernice, Tex., E154 Schakowsky, Janice D., Ill., E154 Brady, Kevin, Tex., E140 Kildee, Dale E., Mich., E148, E149 Capps, Lois, Calif., E137 Kucinich, Dennis J., Ohio, E129, E131, E134, E135, E136 Schmidt, Jean, Ohio, E130, E133, E136, E137 Chandler, Ben, Ky., E138 Leach, James A., Iowa, E143 Serrano, Jose´ E., N.Y., E155, E156, E156, E156 Coble, Howard, N.C., E154 Lee, Barbara, Calif., E145 Sherman, Brad, Calif., E131, E134 Costa, Jim, Calif., E153 McCarthy, Carolyn, N.Y., E142 Shuster, Bill, Pa., E137 Davis, Jo Ann, Va., E143, E153 McCotter, Thaddeus G., Mich., E140 Solis, Hilda L., Calif., E153 DeGette, Diana, Colo., E144 Markey, Edward J., Mass., E144 Stark, Fortney Pete, Calif., E141 Duncan, John J., Jr., Tenn., E140 Miller, George, Calif., E139 Stupak, Bart, Mich., E153 Ehlers, Vernon J., Mich., E129, E131, E135 Musgrave, Marilyn N., Colo., E138 Sullivan, John, Okla., E152 Emanuel, Rahm, Ill., E137 Pallone, Frank, Jr., N.J., E151 Tancredo, Thomas G., Colo., E131, E135 Evans, Lane, Ill., E138 Platts, Todd Russell, Pa., E152 Farr, Sam, Calif., E142 Porter, Jon C., Nev., E147, E148, E149, E152 Visclosky, Peter J., Ind., E142 Frank, Barney, Mass., E130, E132, E135 Radanovich, George, Calif., E138 Woolsey, Lynn C., Calif., E137 Gordon, Bart, Tenn., E143 Rangel, Charles B., N.Y., E145, E147, E148, E150 Wu, David, Ore., E139

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