PROTECT Asbestos Victims Act sponsored by Tillis

U.S. Sen. Thom Tillis (R-NC) recently introduced legislation he said would ensure that an asbestos bankruptcy trust, which is established when a company subject to asbestos-related liability files for bankruptcy under Chapter 11, will benefit victims of asbestos exposure, not trial lawyers.

Sen. Tillis on March 3 sponsored the Providing Responsible Oversight of Trusts to Ensure Compensation and Transparency for Asbestos Victims Act of 2021, or the PROTECT Asbestos Victims Act, S. 574, with two Republican cosponsors.

If enacted, S. 574 would protect future asbestos victims by implementing several reforms to the bankruptcy trust system, such as by empowering the U.S. Trustee Program of the U.S. Department of Justice to investigate fraud against asbestos trusts, which they are prevented from doing under current law, according to a bill summary provided by the senator’s office.

“The PROTECT Asbestos Victims Act will reform the asbestos bankruptcy trust system by adding in layers of oversight, accountability, and transparency, which in turn will help eliminate fraud and ensure that trusts can compensate present and future asbestos victims.”

Additionally, the bill would make it a crime to knowingly submit a false claim to a trust; allow for the appointment of a special representative to advise future victims in a bankruptcy case; and mandate that trusts report claims information to the Centers for Medicare and Medicaid (CMS) to ensure proper reimbursement, according to the summary.

Sen. Tillis originally introduced the PROTECT Asbestos Victims Act of 2019, S. 766, but the bill stalled in the U.S. Senate Judiciary Committee.