House
Study
Bill
104
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
JUDICIARY
BILL
BY
CHAIRPERSON
BALTIMORE)
A
BILL
FOR
An
Act
relating
to
disclosure
of
asbestos
bankruptcy
trust
1
claims
in
civil
asbestos
actions,
asbestos
and
silica
claims
2
prioritization,
and
successor
corporation
asbestos-related
3
liability,
and
including
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
1990YC
(4)
87
jh/nh
H.F.
_____
Section
1.
NEW
SECTION
.
686A.1
Title.
1
This
chapter
shall
be
known
and
may
be
cited
as
the
“Asbestos
2
Bankruptcy
Trust
Claims
Transparency
Act”
.
3
Sec.
2.
NEW
SECTION
.
686A.2
Definitions.
4
As
used
in
this
chapter,
unless
the
context
otherwise
5
requires:
6
1.
“Asbestos”
means
chrysotile,
amosite,
crocidolite,
7
tremolite
asbestos,
anthophyllite
asbestos,
actinolite
8
asbestos,
asbestiform
winchite,
asbestiform
richterite,
9
asbestiform
amphibole
minerals,
and
any
of
these
minerals
that
10
have
been
chemically
treated
or
altered,
including
all
minerals
11
defined
as
asbestos
in
29
C.F.R.
pt.
1910,
at
the
time
the
12
asbestos
action
is
filed.
13
2.
“Asbestos
action”
means
a
claim
for
damages
or
other
14
civil
or
equitable
relief
presented
in
a
civil
action
arising
15
out
of,
based
on,
or
related
to
the
health
effects
of
exposure
16
to
asbestos,
including
loss
of
consortium,
wrongful
death,
17
mental
or
emotional
injury,
risk
or
fear
of
disease
or
other
18
injury,
costs
of
medical
monitoring
or
surveillance,
and
any
19
other
derivative
claim
made
by
or
on
behalf
of
a
person
exposed
20
to
asbestos
or
a
representative,
spouse,
parent,
child,
or
21
other
relative
of
that
person.
22
3.
“Asbestos
trust”
means
a
government-approved
or
23
court-approved
trust,
qualified
settlement
fund,
compensation
24
fund,
or
claims
facility
created
as
a
result
of
an
25
administrative
or
legal
action,
a
court-approved
bankruptcy,
26
or
pursuant
to
11
U.S.C.
§524(g)
or
11
U.S.C.
§1121(a)
or
27
other
applicable
provision
of
law,
that
is
intended
to
provide
28
compensation
to
claimants
arising
out
of,
based
on,
or
related
29
to
the
health
effects
of
exposure
to
asbestos.
30
4.
“Plaintiff”
means
the
person
bringing
an
asbestos
action,
31
including
a
personal
representative
if
the
asbestos
action
is
32
brought
by
an
estate,
or
a
conservator
or
next
friend
if
the
33
asbestos
action
is
brought
on
behalf
of
a
minor
or
legally
34
incapacitated
individual.
35
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H.F.
_____
5.
“Trust
claims
materials”
means
a
final
executed
proof
1
of
claim
and
all
other
documents
and
information
related
to
a
2
claim
against
an
asbestos
trust,
including
claims
forms
and
3
supplementary
materials,
affidavits,
depositions
and
trial
4
testimony,
work
history,
and
medical
and
health
records,
5
documents
reflecting
the
status
of
a
claim
against
an
asbestos
6
trust,
and
if
the
trust
claim
has
settled,
all
documents
7
relating
to
the
settlement
of
the
trust
claim.
8
6.
“Trust
governance
documents”
means
all
documents
that
9
relate
to
eligibility
and
payment
levels,
including
claims
10
payment
matrices,
trust
distribution
procedures,
or
plans
for
11
reorganization,
for
an
asbestos
trust.
12
Sec.
3.
NEW
SECTION
.
686A.3
Required
disclosures
by
13
plaintiff.
14
1.
Within
thirty
days
after
an
asbestos
action
is
filed,
15
or
within
thirty
days
after
the
effective
date
of
this
16
Act,
whichever
is
later,
the
plaintiff
shall
do
all
of
the
17
following:
18
a.
Provide
the
court
and
parties
with
a
sworn
statement
19
signed
by
the
plaintiff
and
the
plaintiff’s
counsel,
under
20
penalty
of
perjury,
indicating
that
an
investigation
of
all
21
asbestos
trust
claims
has
been
conducted
and
that
all
asbestos
22
trust
claims
that
may
be
made
by
the
plaintiff
or
any
person
on
23
the
plaintiff’s
behalf
have
been
filed.
The
sworn
statement
24
must
indicate
whether
there
has
been
a
request
to
defer,
delay,
25
suspend,
or
toll
any
asbestos
trust
claim,
and
provide
the
26
disposition
of
each
asbestos
trust
claim.
27
b.
Provide
all
parties
with
all
trust
claims
materials,
28
including
trust
claims
materials
that
relate
to
conditions
29
other
than
those
that
are
the
basis
for
the
asbestos
action
30
and
including
all
trust
claims
materials
from
all
attorneys
31
connected
to
the
plaintiff
in
relation
to
exposure
to
asbestos,
32
including
any
attorney
involved
in
the
asbestos
action,
any
33
referring
attorney,
and
any
other
attorney
who
has
filed
an
34
asbestos
trust
claim
for
the
plaintiff
or
on
the
plaintiff’s
35
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28
H.F.
_____
behalf.
1
c.
If
the
plaintiff’s
asbestos
trust
claim
is
based
on
2
exposure
to
asbestos
through
another
individual,
the
plaintiff
3
shall
produce
all
trust
claims
materials
submitted
by
the
4
other
individual
to
any
asbestos
trusts
if
the
materials
are
5
available
to
the
plaintiff
or
the
plaintiff’s
counsel.
6
2.
The
plaintiff
shall
supplement
the
information
and
7
materials
required
under
subsection
1
within
thirty
days
after
8
the
plaintiff
or
a
person
on
the
plaintiff’s
behalf
supplements
9
an
existing
asbestos
trust
claim,
receives
additional
10
information
or
materials
related
to
an
asbestos
trust
claim,
or
11
files
an
additional
asbestos
trust
claim.
12
3.
The
court
may
dismiss
the
asbestos
action
if
the
13
plaintiff
fails
to
comply
with
this
section.
14
4.
An
asbestos
action
shall
not
be
set
for
trial
until
15
at
least
one
hundred
eighty
days
after
the
requirements
of
16
subsection
1
are
met.
17
Sec.
4.
NEW
SECTION
.
686A.4
Identification
of
additional
or
18
alternative
asbestos
trusts
by
defendant.
19
1.
A
defendant
may
file
a
motion
requesting
a
stay
of
20
the
proceedings
on
or
before
the
later
of
the
sixtieth
day
21
before
the
date
trial
in
the
action
is
set
to
commence
or
the
22
fifteenth
day
after
the
defendant
first
obtains
information
23
that
could
support
additional
trust
claims
by
the
plaintiff.
24
The
motion
shall
identify
the
asbestos
trust
claims
the
25
defendant
believes
the
plaintiff
can
file
and
include
26
information
supporting
the
asbestos
trust
claims.
27
2.
Within
ten
days
of
receiving
the
defendant’s
motion,
the
28
plaintiff
shall
do
one
of
the
following:
29
a.
File
the
asbestos
trust
claims.
30
b.
File
a
written
response
with
the
court
stating
the
reason
31
there
is
insufficient
evidence
for
the
plaintiff
to
file
the
32
asbestos
trust
claims.
33
c.
File
a
written
response
with
the
court
requesting
a
34
determination
that
the
cost
to
file
the
asbestos
trust
claims
35
-3-
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3/
28
H.F.
_____
exceeds
the
plaintiff’s
reasonably
anticipated
recovery.
1
3.
a.
If
the
court
determines
that
there
is
a
sufficient
2
basis
for
the
plaintiff
to
file
an
asbestos
trust
claim
3
identified
in
the
motion
to
stay,
the
court
shall
stay
the
4
asbestos
action
until
the
plaintiff
files
the
asbestos
trust
5
claim
and
produces
all
related
trust
claims
materials.
6
b.
If
the
court
determines
that
the
cost
of
submitting
7
an
asbestos
trust
claim
exceeds
the
plaintiff’s
reasonably
8
anticipated
recovery,
the
court
shall
stay
the
asbestos
action
9
until
the
plaintiff
files
with
the
court
and
provides
all
10
parties
with
a
verified
statement
of
the
plaintiff’s
history
11
of
exposure,
usage,
or
other
connection
to
asbestos
covered
by
12
that
asbestos
trust.
13
4.
An
asbestos
action
shall
not
be
set
for
trial
until
at
14
least
sixty
days
after
the
plaintiff
provides
the
documentation
15
required
by
this
section.
16
Sec.
5.
NEW
SECTION
.
686A.5
Discovery
——
use
of
materials.
17
1.
Trust
claims
materials
and
trust
governance
documents
18
are
presumed
to
be
relevant
and
authentic,
and
are
admissible
19
in
evidence
in
an
asbestos
action.
Notwithstanding
any
other
20
provision
of
law
to
the
contrary,
a
claim
of
privilege
does
21
not
apply
to
any
trust
claims
materials
or
trust
governance
22
documents.
23
2.
A
defendant
in
an
asbestos
action
may
seek
discovery
24
from
an
asbestos
trust.
Notwithstanding
any
other
provision
25
of
law
to
the
contrary,
the
plaintiff
may
not
claim
privilege
26
or
confidentiality
to
bar
discovery
and
shall
provide
consent
27
or
other
expression
of
permission
that
may
be
required
by
the
28
asbestos
trust
to
release
information
and
materials
sought
by
a
29
defendant.
30
3.
Trust
claim
materials
that
are
sufficient
to
entitle
31
a
claim
to
consideration
for
payment
under
the
applicable
32
trust
governance
documents
may
be
sufficient
to
support
a
jury
33
finding
that
the
plaintiff
may
have
been
exposed
to
products
34
for
which
the
trust
was
established
to
provide
compensation
and
35
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28
H.F.
_____
that,
under
applicable
law,
such
exposure
may
be
a
substantial
1
contributing
factor
in
causing
the
plaintiff's
injury
that
is
2
at
issue
in
the
asbestos
action.
3
Sec.
6.
NEW
SECTION
.
686A.6
Trust
record
——
valuation
of
4
asbestos
trust
claims
——
judicial
notice.
5
1.
Not
less
than
thirty
days
before
trial
in
an
asbestos
6
action,
the
court
shall
enter
into
the
record
a
document
that
7
identifies
every
asbestos
trust
claim
made
by
the
plaintiff
or
8
on
the
plaintiff’s
behalf.
9
2.
If
a
plaintiff
proceeds
to
trial
in
an
asbestos
10
action
before
an
asbestos
trust
claim
is
resolved,
there
is
11
a
rebuttable
presumption
that
the
plaintiff
is
entitled
to,
12
and
will
receive,
the
compensation
specified
in
the
trust
13
governance
document
applicable
to
the
plaintiff’s
claim
at
the
14
time
of
trial.
The
court
shall
take
judicial
notice
that
the
15
trust
governance
document
specifies
compensation
amounts
and
16
payment
percentages
and
shall
establish
an
attributed
value
to
17
the
plaintiff’s
asbestos
trust
claims.
18
Sec.
7.
NEW
SECTION
.
686A.7
Setoff
——
credit.
19
In
any
asbestos
action
in
which
damages
are
awarded
and
20
setoffs
are
permitted
under
applicable
law,
a
defendant
is
21
entitled
to
a
setoff
or
credit
in
the
amount
the
plaintiff
22
has
been
awarded
from
an
asbestos
trust
identified
in
23
section
686A.6,
subsection
1,
and
the
amount
of
the
valuation
24
established
under
section
686A.6,
subsection
2.
If
multiple
25
defendants
are
found
liable
for
damages,
the
court
shall
26
distribute
the
amount
of
setoff
or
credit
proportionally
27
between
the
defendants,
according
to
the
liability
of
each
28
defendant.
29
Sec.
8.
NEW
SECTION
.
686A.8
Failure
to
provide
information
30
——
sanctions.
31
1.
On
the
motion
of
a
defendant
or
judgment
debtor
seeking
32
sanctions
or
other
relief
in
an
asbestos
action,
the
court
33
may
impose
any
sanction
provided
by
court
rule
or
a
law
of
34
this
state,
including
but
not
limited
to
vacating
a
judgment
35
-5-
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28
H.F.
_____
rendered
in
the
action,
for
a
plaintiff’s
failure
to
comply
1
with
the
disclosure
requirements
of
this
chapter.
2
2.
If
the
plaintiff
or
a
person
on
the
plaintiff’s
behalf
3
files
an
asbestos
trust
claim
after
the
plaintiff
obtains
a
4
judgment
in
an
asbestos
action,
and
that
asbestos
trust
was
5
in
existence
at
the
time
the
plaintiff
obtained
the
judgment,
6
the
trial
court,
on
motion
by
a
defendant
or
judgment
debtor
7
seeking
sanctions
or
other
relief,
has
jurisdiction
to
reopen
8
the
judgment
in
the
asbestos
action
and
adjust
the
judgment
by
9
the
amount
of
any
subsequent
asbestos
trust
payments
obtained
10
by
the
plaintiff
and
order
any
other
relief
to
the
parties
that
11
the
court
considers
just
and
proper.
12
3.
A
defendant
or
judgment
debtor
shall
file
any
motion
13
under
this
section
within
a
reasonable
time
and
not
more
than
14
one
year
after
the
judgment
was
entered.
15
Sec.
9.
NEW
SECTION
.
686A.9
Application.
16
1.
This
chapter
applies
to
all
asbestos
actions
filed
on
or
17
after
the
effective
date
of
this
Act.
18
2.
This
chapter
applies
to
all
pending
asbestos
actions
in
19
which
trial
has
not
commenced
as
of
the
effective
date
of
this
20
Act
unless
the
court
finds
that
the
application
of
a
provision
21
in
this
chapter
would
unconstitutionally
affect
a
vested
right.
22
In
that
case,
the
provision
does
not
apply
and
the
court
shall
23
apply
prior
law.
24
Sec.
10.
NEW
SECTION
.
686B.1
Title.
25
This
chapter
shall
be
known
and
may
be
cited
as
the
“Asbestos
26
and
Silica
Claims
Priorities
Act”
.
27
Sec.
11.
NEW
SECTION
.
686B.2
Definitions.
28
As
used
in
this
chapter,
unless
the
context
otherwise
29
requires:
30
1.
“AMA
guides”
means
the
American
medical
association’s
31
guides
to
the
evaluation
of
permanent
impairment
in
effect
at
32
the
time
of
the
performance
of
any
examination
or
test
on
the
33
exposed
person
required
under
this
chapter.
34
2.
“Asbestos”
means
the
same
as
defined
in
section
686A.2.
35
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H.F.
_____
3.
“Asbestos
action”
means
the
same
as
defined
in
section
1
686A.2.
2
4.
“Asbestosis”
means
bilateral
diffuse
interstitial
3
fibrosis
of
the
lungs
caused
by
inhalation
of
asbestos
fibers.
4
5.
“Board-certified
in
internal
medicine”
means
certified
5
by
the
American
board
of
internal
medicine
or
the
American
6
osteopathic
board
of
internal
medicine
at
the
time
of
the
7
performance
of
an
examination
and
rendition
of
a
report
8
required
by
this
chapter.
9
6.
“Board-certified
in
occupational
medicine”
means
10
certified
in
the
specialty
of
occupational
medicine
by
the
11
American
board
of
preventive
medicine
or
the
specialty
of
12
occupational/environmental
medicine
by
the
American
osteopathic
13
board
of
preventive
medicine
at
the
time
of
the
performance
14
of
an
examination
and
rendition
of
a
report
required
by
this
15
chapter.
16
7.
“Board-certified
in
pathology”
means
holding
primary
17
certification
in
anatomic
pathology
or
clinical
pathology
from
18
the
American
board
of
pathology
or
the
American
osteopathic
19
board
of
pathology
at
the
time
of
the
performance
of
an
20
examination
and
rendition
of
a
report
required
by
this
chapter,
21
and
practicing
principally
in
the
field
of
pathology
including
22
regular
evaluation
of
pathology
materials
obtained
from
23
surgical
or
postmortem
specimens.
24
8.
“Board-certified
in
pulmonary
medicine”
means
certified
in
25
the
specialty
of
pulmonary
medicine
by
the
American
board
of
26
internal
medicine
or
the
American
osteopathic
board
of
internal
27
medicine
at
the
time
of
the
performance
of
an
examination
and
28
rendition
of
a
report
required
by
this
chapter.
29
9.
“Certified
B-reader”
means
an
individual
who
has
30
qualified
as
a
national
institute
for
occupational
safety
and
31
health
final
or
B-reader
of
X
rays
under
42
C.F.R.
§37.51(b),
32
whose
certification
was
current
at
the
time
of
any
readings
33
required
under
this
chapter,
and
whose
B-reads
comply
with
34
the
national
institute
for
occupational
safety
and
health
35
-7-
LSB
1990YC
(4)
87
jh/nh
7/
28
H.F.
_____
B-reader’s
code
of
ethics,
issues
in
classification
of
chest
1
radiographs,
and
classification
of
chest
radiographs
in
2
contested
proceedings.
3
10.
“Exposed
person”
means
a
person
whose
exposure
to
4
asbestos
or
silica
or
to
asbestos-containing
products
or
5
silica-containing
products
is
the
basis
for
an
asbestos
action
6
or
silica
action.
7
11.
“FEV1”
means
forced
expiratory
volume
in
the
first
8
second,
which
is
the
maximal
volume
of
air
expelled
in
one
9
second
during
the
performance
of
simple
spirometric
tests.
10
12.
“FEV1/FVC”
means
the
ratio
between
the
actual
values
for
11
FEV1
over
FVC.
12
13.
“FVC”
means
forced
vital
capacity,
which
is
the
maximal
13
volume
of
air
expired
with
maximum
effort
from
a
position
of
14
full
inspiration.
15
14.
“ILO
system”
and
“ILO
scale”
mean
the
radiological
16
ratings
and
system
for
the
classification
of
chest
X
rays
of
17
the
international
labour
office
provided
in
guidelines
for
18
the
use
of
ILO
international
classification
of
radiographs
of
19
pneumoconioses
in
effect
on
the
day
any
X
rays
of
the
exposed
20
person
were
reviewed
by
a
certified
B-reader.
21
15.
“Nonmalignant
condition”
means
any
condition
that
can
be
22
caused
by
asbestos
or
silica
other
than
a
diagnosed
cancer.
23
16.
“Official
statements
of
the
American
thoracic
society”
24
means
lung
function
testing
standards
set
forth
in
statements
25
from
the
American
thoracic
society,
including
standardizations
26
of
spirometry,
standardizations
of
lung
volume
testing,
27
standardizations
of
diffusion
capacity
testing
or
single-breath
28
determination
of
carbon
monoxide
uptake
in
the
lung,
and
29
interpretive
strategies
for
lung
function
tests,
which
are
in
30
effect
on
the
day
of
the
pulmonary
function
testing
of
the
31
exposed
person.
32
17.
“Pathological
evidence
of
asbestosis”
means
a
statement
33
by
a
physician
who
is
board-certified
in
pathology
that
more
34
than
one
representative
section
of
lung
tissue
uninvolved
35
-8-
LSB
1990YC
(4)
87
jh/nh
8/
28
H.F.
_____
with
any
other
disease
process
demonstrates
a
pattern
of
1
peribronchiolar
or
parenchymal
scarring
in
the
presence
of
2
characteristic
asbestos
bodies
graded
1(B)
or
higher
under
the
3
criteria
published
in
asbestos-associated
diseases,
106
Archive
4
of
Pathology
and
Laboratory
Medicine
11,
appendix
3
(October
5
8,
1982),
or
grade
one
or
higher
in
pathology
of
asbestosis,
6
134
Archive
of
Pathology
and
Laboratory
Medicine
462-80
(March
7
2010)
(tables
2
and
3),
as
amended
at
the
time
of
the
exam,
and
8
there
is
no
other
more
likely
explanation
for
the
presence
of
9
the
fibrosis.
10
18.
“Pathological
evidence
of
silicosis”
means
a
statement
by
11
a
physician
who
is
board-certified
in
pathology
that
more
than
12
one
representative
section
of
lung
tissue
uninvolved
with
any
13
other
disease
process
demonstrates
complicated
silicosis
with
14
characteristic
confluent
silicotic
nodules
or
lesions
equal
15
to
or
greater
than
one
centimeter
and
birefringent
crystals
16
or
other
demonstration
of
crystal
structures
consistent
with
17
silica,
well-organized
concentric
whorls
of
collagen
surrounded
18
by
inflammatory
cells,
in
the
lung
parenchyma
and
no
other
19
more
likely
explanation
for
the
presence
of
the
fibrosis
20
exists,
or
acute
silicosis
with
characteristic
pulmonary
edema,
21
interstitial
inflammation,
and
the
accumulation
within
the
22
alveoli
of
proteinaceous
fluid
rich
in
surfactant.
23
19.
“Plaintiff”
means
the
person
bringing
an
asbestos
action
24
or
silica
action,
including
a
personal
representative
if
the
25
asbestos
action
or
silica
action
is
brought
by
an
estate,
or
26
a
conservator
or
next
friend
if
the
asbestos
action
or
silica
27
action
is
brought
on
behalf
of
a
minor
or
legally
incapacitated
28
individual.
29
20.
“Predicted
lower
limit
of
normal”
means
the
test
30
value
that
is
the
calculated
standard
convention
lying
at
31
the
fifth
percentile,
below
the
upper
ninety-five
percent
of
32
the
reference
population,
based
on
age,
height,
and
gender,
33
according
to
the
recommendations
by
the
American
thoracic
34
society
and
as
referenced
in
the
applicable
AMA
guides,
35
-9-
LSB
1990YC
(4)
87
jh/nh
9/
28
H.F.
_____
primarily
national
health
and
nutrition
examination
survey
1
predicted
values,
or
as
amended.
2
21.
“Pulmonary
function
test”
means
spirometry,
lung
volume
3
testing,
and
diffusion
capacity
testing,
including
appropriate
4
measurements,
quality
control
data,
and
graphs,
performed
in
5
accordance
with
the
methods
of
calibration
and
techniques
6
provided
in
the
applicable
AMA
guides
and
all
standards
7
provided
in
the
official
statements
of
the
American
thoracic
8
society
in
effect
on
the
day
pulmonary
function
testing
of
the
9
exposed
person
was
conducted.
10
22.
“Qualified
physician”
means
a
physician
who
is
11
board-certified
in
internal
medicine,
board-certified
12
in
pathology,
board-certified
in
pulmonary
medicine,
or
13
board-certified
in
occupational
medicine,
as
may
be
appropriate
14
to
the
actual
diagnostic
specialty
in
question,
and
for
whom
15
all
of
the
following
are
true:
16
a.
The
physician
conducted
a
physical
examination
of
17
the
exposed
person
and
has
taken
a
detailed
occupational,
18
exposure,
medical,
smoking,
and
social
history
from
the
exposed
19
person,
or
if
the
exposed
person
is
deceased,
has
reviewed
the
20
pathology
material
and
has
taken
a
detailed
history
from
the
21
person
most
knowledgeable
about
the
information
forming
the
22
basis
of
the
asbestos
action
or
silica
action.
23
b.
The
physician
treated
or
is
treating
the
exposed
person,
24
and
has
or
had
a
doctor-patient
relationship
with
the
exposed
25
person
at
the
time
of
the
physical
examination,
or
in
the
case
26
of
a
physician
who
is
board-certified
in
pathology,
examined
27
tissue
samples
or
pathological
slides
of
the
exposed
person
at
28
the
request
of
the
treating
physician.
29
c.
The
physician
spends
no
more
than
twenty-five
percent
of
30
the
physician’s
professional
practice
time
providing
consulting
31
or
expert
services
in
actual
or
potential
civil
actions,
and
32
whose
medical
group,
professional
corporation,
clinic,
or
other
33
affiliated
group
earns
not
more
than
twenty-five
percent
of
its
34
revenue
providing
such
services.
35
-10-
LSB
1990YC
(4)
87
jh/nh
10/
28
H.F.
_____
d.
The
physician
was
licensed
to
practice
on
the
date
any
1
examination
or
pulmonary
function
testing
was
conducted,
and
2
actively
practices
or
practiced
in
the
state
where
the
exposed
3
person
resides
or
resided
at
the
time
of
the
examination
or
4
pulmonary
function
testing,
or
the
state
where
the
asbestos
5
action
or
silica
action
was
filed.
6
e.
The
physician
received
or
is
receiving
payment
for
the
7
treatment
of
the
exposed
person
from
the
exposed
person,
a
8
member
of
the
exposed
person’s
family,
or
the
exposed
person’s
9
health
care
plan
and
not
from
the
exposed
person’s
attorney.
10
f.
The
physician
prepared
or
directly
supervised
the
11
preparation
and
final
review
of
any
medical
report
under
this
12
chapter.
13
g.
The
physician
has
not
relied
on
any
examinations,
tests,
14
radiographs,
reports,
or
opinions
of
any
physician,
clinic,
15
laboratory,
or
testing
company
that
performed
an
examination,
16
test,
radiograph,
or
screening
of
the
exposed
person
in
17
violation
of
any
law,
regulation,
licensing
requirement,
or
18
medical
code
of
practice
of
the
state
in
which
the
examination,
19
test,
or
screening
was
conducted,
or
that
was
conducted
without
20
establishing
a
physician-patient
relationship
with
the
exposed
21
person
or
medical
personnel
involved
in
the
examination,
test,
22
or
screening
process,
or
that
required
the
exposed
person
to
23
agree
to
retain
the
service
of
an
attorney.
24
23.
“Radiological
evidence
of
asbestosis”
means
a
quality
1
25
chest
X
ray
under
the
ILO
system,
or
a
quality
2
chest
X
ray
26
in
a
death
case
when
no
pathology
or
quality
1
chest
X
ray
is
27
available,
showing
bilateral
small,
irregular
opacities
(s,
t,
28
or
u)
occurring
primarily
in
the
lower
lung
zones
graded
by
a
29
certified
B-reader
as
at
least
1/1
on
the
ILO
scale.
30
24.
“Radiological
evidence
of
diffuse
bilateral
pleural
31
thickening”
means
a
quality
1
chest
X
ray
under
the
ILO
system,
32
or
a
quality
2
chest
X
ray
in
a
death
case
when
no
pathology
or
33
quality
1
chest
X
ray
is
available,
showing
diffuse
bilateral
34
pleural
thickening
of
at
least
b2
on
the
ILO
scale
and
blunting
35
-11-
LSB
1990YC
(4)
87
jh/nh
11/
28
H.F.
_____
of
at
least
one
costophrenic
angle
as
classified
by
a
certified
1
B-reader.
2
25.
“Radiological
evidence
of
silicosis”
means
a
quality
3
1
chest
X
ray
under
the
ILO
system,
or
a
quality
2
chest
X
4
ray
in
a
death
case
when
no
pathology
or
quality
1
chest
X
5
ray
is
available,
showing
bilateral
predominantly
nodular
6
or
rounded
opacities
(p,
q,
or
r)
occurring
primarily
in
7
the
upper
lung
fields
graded
by
a
certified
B-reader
as
at
8
least
1/1
on
the
ILO
scale
or
A,
B,
or
C
sized
opacities
9
representing
complicated
silicosis
or
acute
silicosis
with
10
characteristic
pulmonary
edema,
interstitial
inflammation,
and
11
the
accumulation
within
the
alveoli
of
proteinaceous
fluid
rich
12
in
surfactant.
13
26.
“Silica”
means
a
respirable
crystalline
form
of
silicon
14
dioxide,
including
quartz,
cristobalite,
and
tridymite.
15
27.
“Silica
action”
means
a
claim
for
damages
or
other
civil
16
or
equitable
relief
presented
in
a
civil
action
arising
out
17
of,
based
on,
or
related
to
the
health
effects
of
exposure
to
18
silica,
including
loss
of
consortium,
wrongful
death,
mental
19
or
emotional
injury,
risk
or
fear
of
disease
or
other
injury,
20
costs
of
medical
monitoring
or
surveillance,
and
any
other
21
derivative
claim
made
by
or
on
behalf
of
a
person
exposed
to
22
silica
or
a
representative,
spouse,
parent,
child,
or
other
23
relative
of
that
person.
24
28.
“Silicosis”
means
simple
silicosis,
acute
silicosis,
25
accelerated
silicosis,
or
chronic
silicosis
caused
by
the
26
inhalation
of
respirable
silica.
27
29.
“Supporting
test
results”
means
copies
of
the
B-reading;
28
pulmonary
function
tests,
including
printouts
of
the
flow
29
volume
loops,
volume
time
curves,
diffusing
capacity
of
the
30
lung
for
carbon
monoxide
graphs,
lung
volume
tests
and
graphs,
31
quality
control
data
and
other
pertinent
data
for
all
trials
32
and
all
other
elements
required
to
demonstrate
compliance
with
33
the
equipment,
quality,
interpretation,
and
reporting
standards
34
set
forth
in
this
chapter;
B-reader
reports;
reports
of
X
35
-12-
LSB
1990YC
(4)
87
jh/nh
12/
28
H.F.
_____
ray
examinations;
diagnostic
imaging
of
the
chest;
pathology
1
reports;
and
all
other
tests
reviewed
by
the
diagnosing
2
physician
or
a
qualified
physician
in
reaching
the
physician’s
3
conclusions.
4
Sec.
12.
NEW
SECTION
.
686B.3
Filing
claims
——
establishment
5
of
prima
facie
case
——
individual
actions
to
be
filed.
6
1.
A
plaintiff
in
an
asbestos
action
involving
a
7
nonmalignant
condition
or
a
silica
action
involving
silicosis
8
shall
file
with
the
complaint
or
other
initial
pleading
a
9
detailed
narrative
medical
report
and
diagnosis,
signed
under
10
oath
by
a
qualified
physician
and
accompanied
by
supporting
11
test
results,
which
constitute
prima
facie
evidence
that
the
12
exposed
person
meets
the
requirements
of
this
chapter.
The
13
report
shall
not
be
prepared
by
an
attorney
or
person
working
14
for
or
on
behalf
of
an
attorney.
15
2.
A
plaintiff
shall
include
with
the
detailed
narrative
16
medical
report
a
sworn
information
form
containing
all
of
the
17
following:
18
a.
The
name,
address,
date
of
birth,
social
security
19
number,
marital
status,
occupation,
and
employer
of
the
exposed
20
person,
and
any
person
through
whom
the
exposed
person
alleges
21
exposure.
22
b.
The
plaintiff’s
relationship
to
the
exposed
person
or
23
person
through
whom
the
exposure
is
alleged.
24
c.
The
specific
location
and
manner
of
each
alleged
25
exposure,
including
the
specific
location
and
manner
of
26
exposure
for
any
person
through
whom
the
exposed
person
alleges
27
exposure.
28
d.
The
beginning
and
ending
dates
of
each
alleged
exposure.
29
e.
The
identity
of
the
manufacturer
of
the
specific
asbestos
30
or
silica
product
for
each
exposure.
31
f.
The
identity
of
the
defendant
or
defendants
against
whom
32
the
plaintiff
asserts
a
claim.
33
g.
The
specific
asbestos-related
or
silica-related
disease
34
claimed
to
exist.
35
-13-
LSB
1990YC
(4)
87
jh/nh
13/
28
H.F.
_____
h.
Any
supporting
documentation
relating
to
the
information
1
required
under
this
subsection.
2
3.
For
an
asbestos
action
or
silica
action
pending
as
of
3
the
effective
date
of
this
Act,
the
detailed
narrative
medical
4
report
and
supporting
test
results
and
sworn
information
form
5
described
in
subsections
1
and
2
shall
be
provided
to
all
6
parties
not
later
than
ninety
days
after
the
effective
date
of
7
this
Act
or
not
later
than
ninety
days
before
trial,
whichever
8
is
earlier.
9
4.
A
defendant
shall
be
afforded
a
reasonable
opportunity
10
to
challenge
the
adequacy
of
the
prima
facie
evidence
before
11
trial.
12
5.
The
court
shall
dismiss
the
asbestos
action
or
silica
13
action
without
prejudice
on
finding
that
the
plaintiff
has
14
failed
to
make
the
prima
facie
showing
required
by
this
chapter
15
or
failed
to
comply
with
the
requirements
of
this
section.
16
6.
An
asbestos
action
or
silica
action
must
be
individually
17
filed
and
shall
not
be
filed
on
behalf
of
a
group
or
class
of
18
plaintiffs.
19
Sec.
13.
NEW
SECTION
.
686B.4
Asbestos
claims
involving
20
nonmalignant
conditions
——
elements
of
proof.
21
An
asbestos
action
involving
a
nonmalignant
condition
shall
22
not
be
brought
or
maintained
in
the
absence
of
prima
facie
23
evidence
that
the
exposed
person
has
a
physical
impairment
for
24
which
asbestos
exposure
was
a
substantial
contributing
factor.
25
The
prima
facie
showing
shall
be
made
as
to
each
defendant
26
and
include
a
detailed
narrative
medical
report
and
diagnosis
27
signed
under
oath
by
a
qualified
physician
that
includes
all
28
of
the
following:
29
1.
Radiological
or
pathological
evidence
of
asbestosis
or
30
radiological
evidence
of
diffuse
bilateral
pleural
thickening
31
or
a
high-resolution
computed
tomography
scan
showing
evidence
32
of
asbestosis
or
diffuse
bilateral
pleural
thickening.
33
2.
A
detailed
occupational
and
exposure
history
from
34
the
exposed
person
or,
if
that
person
is
deceased,
from
the
35
-14-
LSB
1990YC
(4)
87
jh/nh
14/
28
H.F.
_____
person
most
knowledgeable
about
the
exposures
that
form
the
1
basis
of
the
action,
including
identification
of
all
of
the
2
exposed
person’s
principal
places
of
employment
and
exposures
3
to
airborne
contaminants
and
whether
each
place
of
employment
4
involved
exposures
to
airborne
contaminants,
including
asbestos
5
fibers
or
other
disease-causing
dusts
or
fumes,
that
may
cause
6
pulmonary
impairment
and
the
nature,
duration,
and
level
of
any
7
exposure.
8
3.
A
detailed
medical,
social,
and
smoking
history
from
the
9
exposed
person
or,
if
that
person
is
deceased,
from
the
person
10
most
knowledgeable,
including
a
thorough
review
of
the
past
and
11
present
medical
problems
of
the
exposed
person
and
the
most
12
probable
cause
of
such
medical
problems.
13
4.
Evidence
verifying
that
at
least
fifteen
years
have
14
elapsed
between
the
exposed
person’s
date
of
first
exposure
to
15
asbestos
and
the
date
of
diagnosis.
16
5.
Evidence
based
upon
a
personal
medical
examination
17
and
pulmonary
function
testing
of
the
exposed
person
or,
18
if
the
exposed
person
is
deceased,
based
upon
the
person’s
19
medical
records,
that
the
exposed
person
has
or
the
deceased
20
person
had
a
permanent
respiratory
impairment
rating
of
at
21
least
class
2
as
defined
by
and
evaluated
pursuant
to
the
22
AMA
guides
or
reported
significant
changes
year
to
year
in
23
lung
function
for
FVC,
FEV1,
or
diffusing
capacity
of
the
24
lung
for
carbon
monoxide
as
defined
by
the
American
thoracic
25
society’s
interpretative
strategies
for
lung
function
tests,
26
26
European
Respiratory
Journal
948-68,
961-62,
table
12
(2005),
27
as
updated.
28
6.
Evidence
that
asbestosis
or
diffuse
bilateral
pleural
29
thickening,
rather
than
chronic
obstructive
pulmonary
disease,
30
is
a
substantial
contributing
factor
to
the
exposed
person’s
31
physical
impairment,
based
on
a
determination
that
the
exposed
32
person
has
any
of
the
following:
33
a.
FVC
below
the
predicted
lower
limit
of
normal
and
34
FEV1/FVC
ratio,
using
actual
values,
at
or
above
the
predicted
35
-15-
LSB
1990YC
(4)
87
jh/nh
15/
28
H.F.
_____
lower
limit
of
normal.
1
b.
Total
lung
capacity,
by
plethysmography
or
timed
gas
2
dilution,
below
the
predicted
lower
limit
of
normal.
3
c.
A
chest
X
ray
showing
bilateral
small,
irregular
4
opacities
(s,
t,
or
u)
graded
by
a
certified
B-reader
as
at
5
least
2/1
on
the
ILO
scale.
6
7.
The
qualified
physician
signing
the
detailed
narrative
7
medical
report
has
concluded
that
exposure
to
asbestos
was
8
a
substantial
contributing
factor
to
the
exposed
person’s
9
physical
impairment
and
not
more
probably
the
result
of
other
10
causes.
An
opinion
that
the
medical
findings
and
impairment
11
are
consistent
with
or
compatible
with
exposure
to
asbestos,
12
or
similar
opinion,
does
not
satisfy
the
requirements
of
this
13
subsection.
14
Sec.
14.
NEW
SECTION
.
686B.5
Silica
claims
involving
15
silicosis
——
elements
of
proof.
16
A
silica
action
involving
silicosis
shall
not
be
brought
17
or
maintained
in
the
absence
of
prima
facie
evidence
that
the
18
exposed
person
has
a
physical
impairment
for
which
exposure
19
to
silica
was
a
substantial
contributing
factor.
The
prima
20
facie
showing
shall
be
made
as
to
each
defendant
and
include
21
a
detailed
narrative
medical
report
and
diagnosis
signed
22
under
oath
by
a
qualified
physician
that
includes
all
of
the
23
following:
24
1.
Radiological
or
pathological
evidence
of
silicosis
or
a
25
high-resolution
computed
tomography
scan
showing
evidence
of
26
silicosis.
27
2.
A
detailed
occupational
and
exposure
history
from
the
28
exposed
person
or,
if
that
person
is
deceased,
from
the
person
29
most
knowledgeable
about
the
exposures
that
form
the
basis
of
30
the
action,
including
identification
of
all
principal
places
31
of
employment
and
exposures
to
airborne
contaminants
and
32
whether
each
place
of
employment
involved
exposures
to
airborne
33
contaminants,
including
silica
or
other
disease-causing
dusts
34
or
fumes,
that
may
cause
pulmonary
impairment
and
the
nature,
35
-16-
LSB
1990YC
(4)
87
jh/nh
16/
28
H.F.
_____
duration,
and
level
of
any
exposure.
1
3.
A
detailed
medical,
social,
and
smoking
history
from
the
2
exposed
person
or,
if
that
person
is
deceased,
from
the
person
3
most
knowledgeable,
including
a
thorough
review
of
the
past
and
4
present
medical
problems
of
the
exposed
person
and
the
most
5
probable
cause
of
such
medical
problems.
6
4.
Evidence
that
a
sufficient
latency
period
has
elapsed
7
between
the
exposed
person’s
date
of
first
exposure
to
silica
8
and
the
day
of
diagnosis.
9
5.
Evidence
based
upon
a
personal
medical
examination
10
and
pulmonary
function
testing
of
the
exposed
person
or,
11
if
the
exposed
person
is
deceased,
based
upon
the
person’s
12
medical
records,
that
the
exposed
person
has
or
the
deceased
13
person
had
a
permanent
respiratory
impairment
rating
of
at
14
least
class
2
as
defined
by
and
evaluated
pursuant
to
the
15
AMA
guides
or
reported
significant
changes
year
to
year
in
16
lung
function
for
FVC,
FEV1,
or
diffusing
capacity
of
the
17
lung
for
carbon
monoxide
as
defined
by
the
American
thoracic
18
society’s
interpretative
strategies
for
lung
function
tests,
26
19
European
Respiratory
Journal
948-68,
961-62,
table
12
(2005),
20
as
updated.
21
6.
The
qualified
physician
signing
the
detailed
narrative
22
medical
report
has
concluded
that
exposure
to
silica
was
23
a
substantial
contributing
factor
to
the
exposed
person’s
24
physical
impairment
and
not
more
probably
the
result
of
other
25
causes.
An
opinion
stating
that
the
medical
findings
and
26
impairment
are
consistent
with
or
compatible
with
exposure
to
27
silica,
or
similar
opinion,
does
not
satisfy
the
requirements
28
of
this
subsection.
29
Sec.
15.
NEW
SECTION
.
686B.6
Evidence
of
physical
30
impairment.
31
Evidence
relating
to
physical
impairment,
including
32
pulmonary
function
testing
and
diffusing
studies,
offered
in
33
an
action
governed
by
this
chapter,
must
satisfy
all
of
the
34
following
requirements:
35
-17-
LSB
1990YC
(4)
87
jh/nh
17/
28
H.F.
_____
1.
The
evidence
must
comply
with
the
quality
controls,
1
equipment
requirements,
methods
of
calibration,
and
techniques
2
set
forth
in
the
AMA
guides
and
all
standards
set
forth
in
the
3
official
statements
of
the
American
thoracic
society
which
are
4
in
effect
on
the
date
of
any
examination
or
pulmonary
function
5
testing
of
the
exposed
person
required
by
this
chapter.
6
2.
The
evidence
must
not
be
obtained
by
or
based
on
testing
7
or
examinations
that
violate
any
law,
regulation,
licensing
8
requirement,
or
medical
code
of
practice
of
the
state
in
which
9
the
examination,
test,
or
screening
was
conducted,
or
of
this
10
state.
11
3.
The
evidence
must
not
be
obtained
under
the
condition
12
that
the
plaintiff
or
exposed
person
retains
the
legal
services
13
of
the
attorney
sponsoring
the
examination,
test,
or
screening.
14
Sec.
16.
NEW
SECTION
.
686B.7
Procedures
——
limitation.
15
1.
Evidence
relating
to
the
prima
facie
showings
required
16
under
this
chapter
shall
not
create
any
presumption
that
the
17
exposed
person
has
an
asbestos-related
or
silica-related
injury
18
or
impairment,
and
shall
not
be
conclusive
as
to
the
liability
19
of
any
defendant.
20
2.
No
evidence
shall
be
offered
at
trial,
and
the
jury
shall
21
not
be
informed,
of
any
of
the
following:
22
a.
The
grant
or
denial
of
a
motion
to
dismiss
an
asbestos
23
action
or
silica
action
under
the
provisions
of
this
chapter.
24
b.
The
provisions
of
this
chapter
with
respect
to
what
25
constitutes
a
prima
facie
showing
of
asbestos-related
26
impairment
or
silica-related
impairment.
27
3.
Until
a
court
enters
an
order
determining
that
the
28
exposed
person
has
established
prima
facie
evidence
of
29
impairment,
an
asbestos
action
or
silica
action
shall
not
be
30
subject
to
discovery,
except
discovery
related
to
establishing
31
or
challenging
the
prima
facie
evidence
or
by
order
of
the
32
trial
court
upon
motion
of
one
of
the
parties
and
for
good
33
cause
shown.
34
4.
a.
A
court
may
consolidate
for
trial
any
number
and
35
-18-
LSB
1990YC
(4)
87
jh/nh
18/
28
H.F.
_____
type
of
asbestos
actions
or
silica
actions
with
the
consent
of
1
all
the
parties.
In
the
absence
of
such
consent,
the
court
may
2
consolidate
for
trial
only
asbestos
actions
or
silica
actions
3
relating
to
the
exposed
person
and
members
of
that
person’s
4
household.
5
b.
This
subsection
does
not
preclude
the
consolidation
of
6
cases
by
court
order
for
pretrial
or
discovery
purposes.
7
5.
A
defendant
in
an
asbestos
action
or
silica
action
shall
8
not
be
liable
for
exposures
from
a
product
or
component
part
9
made
or
sold
by
a
third
party.
10
Sec.
17.
NEW
SECTION
.
686B.8
Statute
of
limitations
——
11
two-disease
rule.
12
1.
With
respect
to
an
asbestos
action
or
silica
action
not
13
barred
by
limitations
as
of
the
effective
date
of
this
Act,
an
14
exposed
person’s
cause
of
action
shall
not
accrue,
nor
shall
15
the
running
of
limitations
commence,
prior
to
the
earliest
of
16
the
following:
17
a.
The
exposed
person
received
a
medical
diagnosis
of
an
18
asbestos-related
impairment
or
silica-related
impairment.
19
b.
The
exposed
person
discovered
facts
that
would
have
20
led
a
reasonable
person
to
obtain
a
medical
diagnosis
with
21
respect
to
the
existence
of
an
asbestos-related
impairment
or
22
silica-related
impairment.
23
c.
The
date
of
death
of
the
exposed
person
having
an
24
asbestos-related
impairment
or
silica-related
impairment.
25
2.
This
section
shall
not
be
construed
to
revive
or
extend
26
limitations
with
respect
to
any
claim
for
asbestos-related
27
impairment
or
silica-related
impairment
that
was
otherwise
28
time-barred
as
of
the
effective
date
of
this
Act.
29
3.
An
asbestos
action
or
silica
action
arising
out
of
a
30
nonmalignant
condition
shall
be
a
distinct
cause
of
action
from
31
an
action
for
an
asbestos-related
cancer
or
silica-related
32
cancer.
Where
otherwise
permitted
under
state
law,
no
damages
33
shall
be
awarded
for
fear
or
increased
risk
of
future
disease
34
in
an
asbestos
action
or
silica
action.
35
-19-
LSB
1990YC
(4)
87
jh/nh
19/
28
H.F.
_____
Sec.
18.
NEW
SECTION
.
686B.9
Application.
1
1.
This
chapter
applies
to
all
asbestos
actions
and
silica
2
actions
filed
on
or
after
the
effective
date
of
this
Act.
3
2.
This
chapter
applies
to
all
pending
asbestos
actions
4
and
silica
actions
in
which
trial
has
not
commenced
as
5
of
the
effective
date
of
this
Act
unless
the
court
finds
6
that
the
application
of
a
provision
in
this
chapter
would
7
unconstitutionally
affect
a
vested
right.
In
that
case,
the
8
provision
does
not
apply
and
the
court
shall
apply
prior
law.
9
Sec.
19.
NEW
SECTION
.
686C.1
Title.
10
This
chapter
shall
be
known
and
may
be
cited
as
the
11
“Successor
Corporation
Asbestos-Related
Liability
Fairness
Act”
.
12
Sec.
20.
NEW
SECTION
.
686C.2
Definitions.
13
As
used
in
this
chapter,
unless
the
context
otherwise
14
requires:
15
1.
“Asbestos
action”
means
the
same
as
defined
in
section
16
686A.2,
but
also
includes
any
claim
for
damage
or
loss
caused
17
by
the
installation,
presence,
or
removal
of
asbestos.
18
2.
“Corporation”
means
any
corporation
established
under
19
either
domestic
or
foreign
charter
and
includes
a
corporate
20
subsidiary
and
any
business
entity
in
which
a
corporation
21
participates
or
is
a
stockholder,
a
partner,
or
a
joint
22
venture.
23
3.
“Successor”
means
a
corporation
that
assumes
or
incurs
or
24
has
assumed
or
incurred
successor
asbestos-related
liabilities
25
through
operation
of
law,
including
but
not
limited
to
a
26
merger
or
consolidation
or
plan
of
merger
or
consolidation
27
related
to
such
consolidation
or
merger
or
by
appointment
as
28
an
administrator
or
as
a
trustee
in
bankruptcy,
debtor
in
29
possession,
liquidation,
or
receivership
and
that
became
a
30
successor
before
January
1,
1972.
“Successor
”
includes
any
of
31
that
successor
corporation’s
successors.
32
4.
“Successor
asbestos-related
liability”
means
any
33
liabilities,
whether
known
or
unknown,
asserted
or
unasserted,
34
absolute
or
contingent,
accrued
or
unaccrued,
liquidated
or
35
-20-
LSB
1990YC
(4)
87
jh/nh
20/
28
H.F.
_____
unliquidated,
or
due
or
to
become
due,
which
are
related
in
1
any
way
to
an
asbestos
action
and
were
assumed
or
incurred
by
2
a
corporation
as
a
result
of
or
in
connection
with
a
merger
3
or
consolidation,
or
the
plan
of
merger
or
consolidation
4
related
to
the
merger
or
consolidation
with
or
into
another
5
corporation,
or
that
are
related
in
any
way
to
an
asbestos
6
action
based
on
the
exercise
of
control
or
the
ownership
of
7
stock
of
the
corporation
before
the
merger
or
consolidation.
8
“Successor
asbestos-related
liability”
includes
liabilities
9
that,
after
the
time
of
the
merger
or
consolidation
for
which
10
the
fair
market
value
of
total
gross
assets
is
determined
under
11
section
686C.4,
were
or
are
paid
or
otherwise
discharged,
or
12
committed
to
be
paid
or
otherwise
discharged,
by
or
on
behalf
13
of
the
corporation,
or
by
a
successor
of
the
corporation,
or
by
14
or
on
behalf
of
a
transferor,
in
connection
with
settlements,
15
judgments,
or
other
discharges
in
this
state
or
another
16
jurisdiction.
17
5.
“Transferor”
means
a
corporation
from
which
successor
18
asbestos-related
liabilities
are
or
were
assumed
or
incurred.
19
Sec.
21.
NEW
SECTION
.
686C.3
Limitations
on
successor
20
asbestos-related
liabilities.
21
1.
Except
as
provided
in
subsection
2,
the
cumulative
22
successor
asbestos-related
liabilities
of
a
successor
are
23
limited
to
the
fair
market
value
of
the
total
gross
assets
24
of
the
transferor
determined
as
of
the
time
of
the
merger
25
or
consolidation.
A
successor
shall
not
have
responsibility
26
for
successor
asbestos-related
liabilities
in
excess
of
this
27
limitation.
28
2.
If
the
transferor
had
assumed
or
incurred
successor
29
asbestos-related
liabilities
in
connection
with
a
prior
30
merger
or
consolidation
with
a
prior
transferor,
then
the
31
fair
market
value
of
the
total
gross
assets
of
the
prior
32
transferor
determined
as
of
the
time
of
the
earlier
merger
or
33
consolidation
shall
be
substituted
for
the
limitation
set
forth
34
in
subsection
1
for
purposes
of
determining
the
limitation
of
35
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1990YC
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jh/nh
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28
H.F.
_____
liability
of
a
successor.
1
3.
The
limitations
in
this
section
shall
apply
to
any
2
successor
but
shall
not
apply
to
any
of
the
following:
3
a.
Workers’
compensation
benefits
paid
by
or
on
behalf
of
4
an
employer
to
an
employee
under
the
provisions
of
chapter
85
5
or
85A,
or
a
comparable
workers’
compensation
law
of
another
6
jurisdiction.
7
b.
Any
claim
against
a
corporation
that
does
not
constitute
8
a
successor
asbestos-related
liability.
9
c.
Any
obligation
under
the
federal
National
Labor
10
Relations
Act,
29
U.S.C.
§151
et
seq.,
as
amended,
or
under
any
11
collective
bargaining
agreement.
12
d.
A
successor
that,
after
a
merger
or
consolidation,
13
continued
in
the
business
of
mining
asbestos
or
in
the
14
business
of
selling
or
distributing
asbestos
fibers
or
15
in
the
business
of
manufacturing,
distributing,
removing,
16
or
installing
asbestos-containing
products
which
were
the
17
same
or
substantially
the
same
as
those
products
previously
18
manufactured,
distributed,
removed,
or
installed
by
the
19
transferor.
20
Sec.
22.
NEW
SECTION
.
686C.4
Establishing
fair
market
value
21
of
total
gross
assets.
22
1.
A
successor
may
establish
the
fair
market
value
of
23
total
gross
assets,
which
include
intangible
assets,
for
the
24
purpose
of
the
limitations
under
section
686C.3,
through
any
25
method
reasonable
under
the
circumstances,
including
any
of
the
26
following:
27
a.
By
reference
to
the
going
concern
value
of
the
assets
or
28
to
the
purchase
price
attributable
to
or
paid
for
the
assets
29
in
an
arms-length
transaction.
30
b.
In
the
absence
of
other
readily
available
information
31
from
which
the
fair
market
value
can
be
determined,
by
32
reference
to
the
value
of
the
assets
recorded
on
a
balance
33
sheet.
34
2.
To
the
extent
total
gross
assets
include
any
liability
35
-22-
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87
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28
H.F.
_____
insurance
that
was
issued
to
the
transferor
whose
assets
are
1
being
valued
for
purposes
of
this
section,
the
applicability,
2
terms,
conditions,
and
limits
of
such
insurance
shall
not
be
3
affected
by
this
chapter,
nor
shall
this
chapter
otherwise
4
affect
the
rights
and
obligations
of
an
insurer,
transferor,
5
or
successor
under
any
insurance
contract
or
any
related
6
agreement,
including,
without
limitation,
preenactment
7
settlements
resolving
coverage-related
disputes,
and
the
rights
8
of
an
insurer
to
seek
payment
for
applicable
deductibles,
9
retrospective
premiums,
or
self-insured
retentions
or
to
seek
10
contribution
from
a
successor
for
uninsured
or
self-insured
11
periods
or
periods
where
insurance
is
uncollectible
or
12
otherwise
unavailable.
Without
limiting
the
foregoing,
to
the
13
extent
total
gross
assets
include
any
such
liability
insurance,
14
a
settlement
of
a
dispute
concerning
any
such
liability
15
insurance
coverage
entered
into
by
a
transferor
or
successor
16
with
the
insurers
of
the
transferor
before
the
effective
date
17
of
this
Act
shall
be
determinative
of
the
total
coverage
of
18
such
liability
insurance
to
be
included
in
the
calculation
of
19
the
transferor’s
total
gross
assets.
20
Sec.
23.
NEW
SECTION
.
686C.5
Adjustment.
21
1.
Except
as
provided
in
subsections
2,
3,
and
4,
the
fair
22
market
value
of
total
gross
assets
at
the
time
of
a
merger
or
23
consolidation
shall
increase
annually
at
a
rate
equal
to
the
24
sum
of
the
prime
rate
as
listed
in
the
first
edition
of
the
25
Wall
street
journal
published
for
each
calendar
year
since
the
26
merger
or
consolidation,
unless
the
prime
rate
is
not
published
27
in
that
edition
of
the
Wall
street
journal,
in
which
case
any
28
reasonable
determination
of
the
prime
rate
on
the
first
day
of
29
the
year
may
be
used,
plus
one
percent.
30
2.
The
rate
determined
under
subsection
1
shall
not
be
31
compounded.
32
3.
The
adjustment
of
the
fair
market
value
of
total
33
gross
assets
shall
continue
as
provided
in
subsection
1
34
until
the
date
the
adjusted
value
is
first
exceeded
by
the
35
-23-
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1990YC
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87
jh/nh
23/
28
H.F.
_____
cumulative
amounts
of
successor
asbestos-related
liabilities
1
paid
or
committed
to
be
paid
by
or
on
behalf
of
the
successor
2
corporation
or
a
predecessor
or
by
or
on
behalf
of
a
transferor
3
after
the
time
of
the
merger
or
consolidation
for
which
the
4
fair
market
value
of
total
gross
assets
is
determined.
5
4.
No
adjustment
of
the
fair
market
value
of
total
gross
6
assets
shall
be
applied
to
any
liability
insurance
that
may
be
7
included
in
the
total
gross
assets
pursuant
to
section
686C.4,
8
subsection
2.
9
Sec.
24.
NEW
SECTION
.
686C.6
Scope
of
chapter
——
10
application.
11
1.
This
chapter
shall
be
liberally
construed
with
regard
to
12
successors.
13
2.
This
chapter
applies
to
all
asbestos
claims
filed
against
14
a
successor
on
or
after
the
effective
date
of
this
Act.
15
3.
This
chapter
applies
to
all
pending
asbestos
actions
in
16
which
trial
has
not
commenced
as
of
the
effective
date
of
this
17
Act
unless
the
court
finds
that
the
application
of
a
provision
18
in
this
chapter
would
unconstitutionally
affect
a
vested
right.
19
In
that
case,
the
provision
does
not
apply
and
the
court
shall
20
apply
prior
law.
21
EXPLANATION
22
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
23
the
explanation’s
substance
by
the
members
of
the
general
assembly.
24
This
bill
relates
to
disclosure
of
asbestos
bankruptcy
trust
25
claims
in
civil
asbestos
actions,
asbestos
and
silica
claims
26
prioritization,
and
successor
corporation
asbestos-related
27
liability,
and
includes
applicability
provisions.
28
ASBESTOS
BANKRUPTCY
TRUST
CLAIMS.
The
bill
enacts
new
29
Code
chapter
686A,
which
requires
a
plaintiff
in
an
asbestos
30
action
to
disclose
documents
and
information
related
to
claims
31
against
an
asbestos
trust
to
a
defendant
within
the
later
of
30
32
days
of
filing
an
asbestos
action
or
30
days
of
the
effective
33
date
of
the
bill.
If
the
plaintiff
fails
to
comply
with
these
34
requirements,
the
court
may
dismiss
the
action.
35
-24-
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1990YC
(4)
87
jh/nh
24/
28
H.F.
_____
The
bill
provides
that
a
defendant
may
file
a
motion
1
requesting
a
stay
of
the
proceedings
on
or
before
the
later
2
of
the
60th
day
before
the
date
trial
in
the
action
is
set
to
3
commence
or
the
15th
day
after
the
defendant
first
obtains
4
information
that
could
support
additional
trust
claims
by
the
5
plaintiff.
The
motion
shall
identify
the
asbestos
trust
claims
6
the
defendant
believes
the
plaintiff
can
file
and
include
7
information
supporting
the
asbestos
trust
claims.
8
The
bill
provides
that
trust
claims
materials
and
trust
9
governance
documents
are
presumed
to
be
relevant
and
authentic,
10
and
are
admissible
in
evidence
in
an
asbestos
action.
A
claim
11
of
privilege
does
not
apply
to
any
trust
claims
materials
or
12
trust
governance
documents.
The
bill
provides
that
trust
13
claim
materials
that
are
sufficient
to
entitle
a
claim
to
14
consideration
for
payment
under
the
applicable
trust
governance
15
documents
may
be
sufficient
to
support
a
jury
finding
that
16
the
plaintiff
may
have
been
exposed
to
products
for
which
the
17
trust
was
established
to
provide
compensation
and
that,
under
18
applicable
law,
such
exposure
may
be
a
substantial
contributing
19
factor
in
causing
the
plaintiff’s
injury
that
is
at
issue
in
20
the
asbestos
action.
21
If
a
plaintiff
proceeds
to
trial
in
an
asbestos
action
before
22
an
asbestos
trust
claim
is
resolved,
there
is
a
rebuttable
23
presumption
that
the
plaintiff
is
entitled
to,
and
will
24
receive,
the
compensation
specified
in
the
trust
governance
25
document
applicable
to
the
plaintiff’s
claim
at
the
time
of
26
trial.
27
In
any
asbestos
action
in
which
damages
are
awarded
and
28
setoffs
are
permitted,
a
defendant
is
entitled
to
a
setoff
or
29
credit
in
the
amount
the
plaintiff
has
been
awarded
from
an
30
asbestos
trust.
31
The
bill
provides
that
if
the
plaintiff
or
a
person
on
32
the
plaintiff’s
behalf
files
an
asbestos
trust
claim
after
33
the
plaintiff
obtains
a
judgment
in
an
asbestos
action,
34
and
that
asbestos
trust
was
in
existence
at
the
time
the
35
-25-
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1990YC
(4)
87
jh/nh
25/
28
H.F.
_____
plaintiff
obtained
the
judgment,
the
trial
court,
on
motion
1
by
a
defendant
or
judgment
debtor
seeking
sanctions
or
other
2
relief,
has
jurisdiction
to
reopen
the
judgment
and
adjust
3
the
judgment
by
the
amount
of
any
subsequent
asbestos
trust
4
payments
obtained
by
the
plaintiff
and
order
any
other
relief
5
to
the
parties
that
the
court
considers
just
and
proper.
6
The
bill
applies
to
all
asbestos
actions
filed
on
or
after
7
the
effective
date
of
the
bill,
and
to
all
pending
asbestos
8
actions
in
which
trial
has
not
commenced
as
of
the
effective
9
date
of
the
bill
unless
the
court
finds
that
the
application
10
of
a
provision
of
the
bill
would
unconstitutionally
affect
a
11
vested
right.
In
that
case,
the
provision
does
not
apply
and
12
the
court
shall
apply
prior
law.
13
ASBESTOS
AND
SILICA
CLAIMS
PRIORITIZATION.
The
bill
enacts
14
new
Code
chapter
686B,
which
provides
that
a
plaintiff
in
an
15
asbestos
action
involving
a
nonmalignant
condition
or
a
silica
16
action
involving
silicosis
shall
file
with
the
complaint
or
17
other
initial
pleading
a
detailed
narrative
medical
report
18
and
diagnosis,
signed
under
oath
by
a
qualified
physician
and
19
accompanied
by
supporting
test
results,
which
constitute
prima
20
facie
evidence
that
the
exposed
person
meets
the
requirements
21
of
the
bill.
The
report
must
not
be
prepared
by
an
attorney.
22
For
an
asbestos
or
silica
action
pending
as
of
the
effective
23
date
of
the
bill,
the
detailed
narrative
medical
report
and
24
supporting
test
results
and
sworn
information
shall
be
provided
25
to
all
parties
not
later
than
90
days
after
the
effective
date
26
of
the
bill
or
not
later
than
90
days
before
trial,
whichever
27
is
earlier.
The
court
shall
dismiss
the
asbestos
or
silica
28
action
without
prejudice
on
finding
that
the
plaintiff
has
29
failed
to
make
the
prima
facie
showing
required
by
the
bill
or
30
failed
to
comply
with
the
requirements
of
the
bill.
The
bill
31
provides
that
asbestos
and
silica
actions
must
be
individually
32
filed
and
may
not
be
filed
on
behalf
of
a
group
or
class
of
33
plaintiffs.
34
The
bill
provides
that
an
asbestos
action
involving
a
35
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1990YC
(4)
87
jh/nh
26/
28
H.F.
_____
nonmalignant
condition
or
a
silica
action
involving
silicosis
1
shall
not
be
brought
or
maintained
in
the
absence
of
prima
2
facie
evidence
that
the
exposed
person
has
a
physical
3
impairment
for
which
exposure
to
asbestos
or
silica
was
a
4
substantial
contributing
factor.
The
prima
facie
showing
shall
5
be
made
as
to
each
defendant
and
include
a
detailed
narrative
6
medical
report
and
diagnosis
signed
under
oath
by
a
qualified
7
physician
that
includes
certain
specified
information.
The
8
bill
requires
the
qualified
physician
signing
the
detailed
9
narrative
medical
report
to
conclude
that
exposure
to
asbestos
10
or
silica
was
a
substantial
contributing
factor
to
the
exposed
11
person’s
physical
impairment
and
not
more
probably
the
result
12
of
other
causes.
An
opinion
that
the
medical
findings
and
13
impairment
are
consistent
with
or
compatible
with
exposure
to
14
asbestos
or
silica
does
not
satisfy
the
requirements
of
the
15
bill.
16
The
bill
provides
that
evidence
relating
to
the
prima
17
facie
showings
required
under
the
bill
shall
not
create
any
18
presumption
that
the
exposed
person
has
an
asbestos-related
19
or
silica-related
injury
or
impairment,
and
shall
not
be
20
conclusive
as
to
the
liability
of
any
defendant.
Until
a
21
court
enters
an
order
determining
that
the
exposed
person
has
22
established
prima
facie
evidence
of
impairment,
no
asbestos
or
23
silica
action
shall
be
subject
to
discovery,
except
discovery
24
related
to
establishing
or
challenging
the
prima
facie
evidence
25
or
by
order
of
the
trial
court
upon
motion
of
one
of
the
parties
26
and
for
good
cause
shown.
27
An
asbestos
or
silica
action
arising
out
of
a
nonmalignant
28
condition
shall
be
a
distinct
cause
of
action
from
an
action
29
for
an
asbestos-related
or
silica-related
cancer.
30
The
bill
applies
to
all
asbestos
and
silica
actions
31
filed
on
or
after
the
effective
date
of
the
bill,
and
to
all
32
pending
asbestos
and
silica
actions
in
which
trial
has
not
33
commenced
as
of
the
effective
date
of
the
bill
unless
the
court
34
finds
that
the
application
of
a
provision
in
the
bill
would
35
-27-
LSB
1990YC
(4)
87
jh/nh
27/
28
H.F.
_____
unconstitutionally
affect
a
vested
right.
In
that
case,
the
1
provision
does
not
apply
and
the
court
shall
apply
prior
law.
2
SUCCESSOR
CORPORATION
ASBESTOS-RELATED
LIABILITY.
The
3
bill
enacts
new
Code
chapter
686C,
which
limits
liability
4
related
to
asbestos
actions
which
were
assumed
or
incurred
by
a
5
corporation
as
the
result
of
a
merger
or
consolidation.
The
6
bill
provides
that
the
cumulative
successor
asbestos-related
7
liabilities
of
a
successor
corporation
are
limited
to
the
8
fair
market
value
of
the
total
gross
assets
of
the
transferor
9
determined
as
of
the
time
of
the
merger
or
consolidation.
10
The
fair
market
value
of
the
total
gross
assets
may
be
11
determined
by
any
method
reasonable
under
the
circumstances,
12
including
by
reference
to
the
going
concern
value
of
the
assets
13
or
to
the
purchase
price
attributable
to
or
paid
for
the
assets
14
in
an
arms-length
transaction,
or,
in
the
absence
of
other
15
readily
available
information
from
which
the
fair
market
value
16
can
be
determined,
by
reference
to
the
value
of
the
assets
17
recorded
on
a
balance
sheet.
18
The
bill
provides
that
the
fair
market
value
of
total
gross
19
assets
shall
increase
annually
at
a
rate
equal
to
the
sum
of
20
the
prime
rate
plus
1
percent.
21
The
bill
is
to
be
liberally
construed
with
regard
to
22
successor
corporations.
23
The
bill
applies
to
all
asbestos
and
silica
actions
24
filed
on
or
after
the
effective
date
of
the
bill,
and
to
all
25
pending
asbestos
and
silica
actions
in
which
trial
has
not
26
commenced
as
of
the
effective
date
of
the
bill
unless
the
court
27
finds
that
the
application
of
a
provision
in
the
bill
would
28
unconstitutionally
affect
a
vested
right.
In
that
case,
the
29
provision
does
not
apply
and
the
court
shall
apply
prior
law.
30
-28-
LSB
1990YC
(4)
87
jh/nh
28/
28