text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Asbestos Management Incentive Act''.
  
  SEC. 2. FINDINGS.
  
      Congress finds the following:
              (1) Although asbestos is hazardous, the risk of asbestos-
          related disease depends upon exposure to airborne asbestos 
          fibers.
              (2) Data available to the Environmental Protection Agency 
          suggest that average airborne asbestos levels in buildings are 
          very low. Accordingly, the health risk to most building 
          occupants also appears to be very low.
              (3) The Environmental Protection Agency has estimated that 
          only 20 percent of all buildings (including public and 
          commercial buildings, residential apartment buildings of 10 
          units or more, and Federal buildings) contain friable asbestos-
          containing material.
              (4) The Environmental Protection Agency has found that 
          removal of asbestos is often not the best course of action to 
          reduce asbestos exposure. In fact, by releasing asbestos-
          containing material fibers into the air, an improper or 
          unnecessary removal can create a dangerous situation where none 
          previously existed and could result in a net increase in human 
          exposures and risks.
              (5) The Environmental Protection Agency requires asbestos 
          removal only to prevent significant public exposure to airborne 
          asbestos fibers during building demolition or renovation 
          activities.
              (6) Many lending institutions require the removal of 
          asbestos, regardless of its condition, from commercial 
          buildings before approving loans secured by those buildings 
          because of the potential liability for the health of the 
          occupants or property damages for failure to remove the 
          asbestos.
              (7) The Environmental Protection Agency recommends a pro-
          active, in-place management program whenever intact asbestos-
          containing material is discovered.
              (8) The American Medical Association's Council on 
          Scientific Affairs has stated that ``it is better that society 
          use its limited financial resources in learning how to live 
          safely with [asbestos] than in attempting to remove it totally 
          from the environment.''
              (9) The September 1991 report of the Health Effects 
          Institute's Asbestos Literature Review Panel stated that 
          ``there does not appear to be sufficient risk to the health of 
          general occupants to justify arbitrarily removing intact 
          asbestos-containing material from well-maintained buildings''. 
          The report also acknowledged that ``because custodial and 
          maintenance workers may be transiently exposed to higher levels 
          of asbestos, their added life-time risk of cancer may be 
          appreciably higher.''
  
  SEC. 3. EFFECT OF ASBESTOS INSPECTION ON LENDING INSTITUTIONS.
  
      (a) Liability Immunity.--A lending institution that makes a loan or 
  other extension of credit secured by a mortgage or other lien on a 
  commercial building shall not be liable, from the time the loan or 
  other extension of credit is made until it is renegotiated or a 
  superseding loan or other extension of credit is made, under any 
  Federal, State, or local law to any person for injuries, costs, 
  damages, expenses, loss, or other obligation (including claims for 
  indemnification or contribution and claims by third parties for death, 
  personal injury, illness or loss of or damage to property or economic 
  loss) which results from the presence of asbestos-containing material 
  in the building in any case in which--
              (1) the building was constructed during the 5-year period 
          ending on the date that the loan or other extension of credit 
          is made, and the building's construction manager certifies that 
          the building contains no asbestos-containing material; or
              (2) the building--
                      (A) is one for which an asbestos inspection was 
                  conducted in accordance with section 6 after January 1, 
                  1989, and during the 5-year period ending on the date 
                  that the loan or other extension of credit is made (as 
                  demonstrated by appropriate documentation);
                      (B) has not been significantly rebuilt or renovated 
                  in the area that contains asbestos-containing material 
                  since that inspection was completed;
                      (C) is one in which that portion of asbestos-
                  containing material which the management planner 
                  recommended for removal has been removed in accordance 
                  with the Occupational Safety and Health Act and the 
                  regulations promulgated pursuant to section 7(a); and
                      (D) is one in which an operations and maintenance 
                  program is currently being conducted in accordance with 
                  section 8 and the regulations promulgated pursuant to 
                  section 7(a) for remaining asbestos-containing 
                  materials which the management planner recommended be 
                  handled in place.
      (b) Limitation.--The immunity from liability provided in subsection 
  (a) shall not apply if--
              (1) the lending institution requires removal of asbestos-
          containing material that the management planner has recommended 
          be handled in place; or
              (2) the lending institution requires an asbestos inspection 
          of the building despite the fact that--
                      (A) the loan applicant demonstrates, with 
                  appropriate documentation, that the conditions in 
                  subsection (a)(1) or (a)(2) have been satisfied; or
                      (B) the loan applicant demonstrates, with 
                  appropriate documentation, that all asbestos-containing 
                  material has been removed from the building.
      (c) Exclusion.--The immunity from liability provided in subsection 
  (a) shall not apply to a subsidiary of a lending institution in any 
  case in which the lending institution makes a loan or other extension 
  of credit secured by a mortgage or other lien on a commercial building, 
  and the subsidiary is the person to which the loan or other extension 
  of credit is made. For purposes of this subsection, the term 
  ``subsidiary'' means any company that is owned or controlled, directly 
  or indirectly, by a lending institution.
      (d) Effective Date.--This section shall take effect upon the 
  promulgation of regulations by the Administrator of the Environmental 
  Protection Agency pursuant to section 7(a).
  
  SEC. 4. LIABILITY IN THE EVENT OF FORECLOSURE.
  
      In the case of a lending institution that is immune from liability 
  with respect to a commercial building under section 3 and acquires 
  title to such building through foreclosure or other exercise of rights 
  under a security interest, the immunity from liability shall continue 
  in effect so long as the lending institution maintains the operations 
  and maintenance program for the building in accordance with the 
  regulations promulgated pursuant to section 7(a), the Environmental 
  Protection Agency asbestos guidance documents, and this Act.
  
  SEC. 5. CONSTRUCTION OF ACT.
  
      The requirement by a lending institution that a loan applicant 
  conduct an asbestos inspection in accordance with this Act of a 
  building to be secured by a loan, and the conducting of an operations 
  and maintenance program in the building after foreclosure or other 
  exercise of rights under a security interest, shall not be construed as 
  participation in the management of the building by the lending 
  institution and shall be considered to be an activity carried out by 
  the lending institution solely to protect the institution's security 
  interest.
  
  SEC. 6. ASBESTOS INSPECTION REQUIREMENTS.
  
      (a) In General.--For purposes of this Act, an asbestos inspection 
  of a commercial building, if the loan applicant chooses to obtain one, 
  shall be conducted by a qualified management planner for the purpose of 
  determining whether asbestos-containing material is present in the 
  building. If an inspection reveals the presence of asbestos-containing 
  material, the management planner shall recommend specific response 
  actions for each individual area of the building where such material is 
  found. The recommendations shall be made in accordance with the 
  regulations promulgated pursuant to section 7(a) and with the 
  Environmental Protection Agency asbestos guidance documents.
      (b) Management Planner Qualifications.--For purposes of this Act, a 
  qualified management planner is a person who meets all of the following 
  requirements:
              (1) The person must be accredited, pursuant to title II of 
          the Toxic Substances Control Act, as an inspector and 
          management planner for asbestos-containing material in a public 
          or commercial building.
              (2) The person must not own or control or be under the 
          control of (A) any entity which carries out response actions 
          for asbestos-containing material from buildings, (B) any owner 
          or manager of the building being inspected, or (C) any lending 
          institution making a loan or other extension of credit secured 
          by a mortgage or other lien on the building being inspected. 
          For purposes of this paragraph, a person controls an entity if 
          the person, directly or indirectly, owns any amount of the 
          voting stock or other type of ownership interest in the entity.
      (c) Accreditation of Management Planners for Public and Commercial 
  Buildings.--Section 206 of the Toxic Substances Control Act (15 U.S.C. 
  2646) is amended as follows:
              (1) Paragraph (2) of subsection (a) is amended by inserting 
          before the comma the following: ``or for a public or commercial 
          building''.
              (2) Clause (ii) of subsection (a)(1)(A) is amended by 
          inserting before the period the following: ``or for public or 
          commercial buildings''.
  
  SEC. 7. ENVIRONMENTAL PROTECTION AGENCY REQUIREMENTS.
  
      (a) Asbestos Inspection and Management Standards for Public and 
  Commercial Buildings.--Not later than 1 year after the date of the 
  enactment of this Act, the Administrator of the Environmental 
  Protection Agency shall promulgate regulations governing the inspection 
  and management of asbestos in public and commercial buildings for 
  purposes of this Act only. The regulations shall include--
              (1) detailed guidelines for management planners to 
          determine whether asbestos-containing material should be 
          removed or managed in place in a public or commercial building;
              (2) appropriate practices for conducting operations and 
          maintenance programs in public or commercial buildings in which 
          asbestos-containing material is managed in place; and
              (3) standards, applicable to persons complying with section 
          8(1), for periodic surveillance of asbestos-containing material 
          that is managed in place in commercial buildings, including 
          standards for the training of maintenance and custodial staff 
          working in such buildings that are equivalent to the standards 
          for the training of maintenance and custodial staff of local 
          educational agencies under title II of the Toxic Substances 
          Control Act.
      (b) Revision of Environmental Protection Agency Asbestos Guidance 
  Documents.--The Administrator of the Environmental Protection Agency 
  shall periodically update, revise, and republish the Environmental 
  Protection Agency asbestos guidance documents.
  
  SEC. 8. OPERATION AND MAINTENANCE REQUIREMENTS.
  
      For purposes of section 3(a)(2)(D), the following requirements must 
  be met after an asbestos inspection of the building concerned is 
  conducted:
              (1) The owner or operator shall ensure that the remaining 
          asbestos-containing material is visually inspected, not less 
          frequently than every 6 months, by a member of the maintenance 
          or custodial staff, or another person, who has undergone 
          training in accordance with the standards contained in the 
          regulations promulgated pursuant to section 7(a)(4).
              (2) All remaining accessible asbestos-containing material 
          in public and maintenance areas of the building, including 
          asbestos in thermal system insulation and spray-on and 
          trowelled-on asbestos-containing material but excluding intact 
          vinyl floor tile and ceiling tile in public areas, shall be 
          prominently labeled. The owner or operator shall ensure that 
          access to any remaining asbestos-containing material located in 
          inaccessible areas, such as in spaces between floors or walls 
          of the building, is permitted only to persons who have been 
          notified of the presence of the asbestos-containing material.
              (3) After the inspection referred to in section 3(a)(2)(A), 
          a report on the inspection shall be kept on file in the 
          building. Such report shall include an accounting of remaining 
          asbestos-containing material, any such material recommended for 
          removal, and any removal that has taken place since the 
          previous inspection. Such report shall be available in the 
          building, in the administrative offices or other appropriate 
          place for inspection by tenants and employees in the building, 
          maintenance workers of the building, and building contractors. 
          The inspection report shall be updated after each subsequent 
          inspection pursuant to paragraph (1) and after any change in 
          condition of asbestos-containing material being managed in 
          place.
              (4) After each inspection pursuant to paragraph (1), the 
          owner of the building shall notify maintenance workers of the 
          building, either in writing or by posting notice, that an 
          inspection has occurred and that an inspection report is 
          available for inspection.
  
  SEC. 9. RELATIONSHIP TO OTHER LAW.
  
      (a) Clean Air Act.--Nothing in this Act shall be construed or 
  interpreted to preempt, supersede, or otherwise affect any requirement 
  to remove asbestos from a building pursuant to section 112 of the Clean 
  Air Act (42 U.S.C. 7412), as implemented through regulations known as 
  the national emission standards for hazardous air pollutants (40 C.F.R. 
  61).
      (b) Limited Requirements.--Nothing in this Act shall be construed 
  or interpreted as a general requirement for inspections or operations 
  and maintenance programs in public and commercial buildings. The 
  requirements of sections 6, 7, and 8 are established solely to enable 
  lending institutions to satisfy the conditions of this Act for purposes 
  of obtaining immunity from liability under section 3.
  
  SEC. 10. DEFINITIONS.
  
      For purposes of this Act, the following definitions apply:
              (1) The term ``asbestos-containing material'' has the 
          meaning given that term by section 202(4) of the Toxic 
          Substances Control Act (15 U.S.C. 2642(4)).
              (2) The term ``commercial building'' means any building 
          that is not a publicly owned building and that is not a school 
          building as defined in section 202(13) of the Toxic Substances 
          Control Act, except that such term does not include any 
          residential building of fewer than 10 units that is not part of 
          a complex of other residential buildings under common 
          ownership.
              (3) The term ``EPA asbestos guidance documents'' means--
                      (A) the most current version of the publication of 
                  the Environmental Protection Agency titled ``Guidance 
                  for Controlling Asbestos-Containing Materials in 
                  Buildings'' (also known as the ``Purple Book'');
                      (B) the most current version of the publication of 
                  the Environmental Protection Agency titled ``Managing 
                  Asbestos in Place'' (also known as the ``Green Book''); 
                  and
                      (C) any other publication of the Environmental 
                  Protection Agency, including any guidance documents 
                  published pursuant to section 7(a), published for the 
                  purpose of enabling building owners to select and apply 
                  appropriate asbestos control and abatement actions in 
                  their buildings.
              (4) The term ``lending institution'' means (A) a bank, 
          savings and loan association, credit union, or similar 
          institution insured by, or subject to the supervision, 
          approval, or regulation of, the Board of Governors of the 
          Federal Reserve System, the Federal Deposit Insurance 
          Corporation, the Comptroller of the Currency, the Office of 
          Thrift Supervision, or the National Credit Union 
          Administration; (B) any other person, including an insurance 
          company, that makes direct loans or other extensions of credit 
          secured by mortgages or other liens on commercial buildings; 
          (C) any Federal agency to the extent the agency makes direct 
          loans or other extensions of credit secured by mortgages or 
          other liens on commercial buildings; and (D) the Federal 
          Deposit Insurance Corporation, the National Credit Union 
          Administrator Board, and the Resolution Trust Corporation, in 
          such corporation's or Board's capability as conservator, 
          receiver, or liquidating agency for any insured depository 
          institution (as that term is defined in section 3 of the 
          Federal Deposit Insurance Act). The term does not include any 
          institution or Federal agency engaged primarily in the purchase 
          of mortgage loans.
              (5) The term ``mortgage'' means a lien as is commonly given 
          to secure advances on, or the unpaid purchase price of, a 
          commercial building (and related real estate) under the laws of 
          the State in which the building is located, together with the 
          credit instrument, if any, secured thereby. The term includes 
          second mortgages and other subsequent liens on a commercial 
          building given to secure advances or loans.
              (6) The term ``response action'' has the meaning given that 
          term by section 202(11) of the Toxic Substances Control Act (15 
          U.S.C. 2642(11)).
  
                                   
  
  HR 1000 IH----2
target: Asbestos Management Incentive Act - Absolves lending institutions that make loans or credit secured by liens on commercial buildings from liability resulting from asbestos material in any case in which the building was constructed during the five-year period ending on the date that the loan was made and the building's construction manager certifies that the building contains no asbestos-containing material, or in the case of any building:  (1) for which an asbestos inspection was conducted after January 1, 1989, and during such five-year period; (2) that has not been significantly rebuilt in the area that contains such material since that inspection was completed; (3) for which that portion of material recommended for removal has been removed; and (4) for which an operations and maintenance program is currently being conducted. 
  Bars immunity from liability if the lending institution requires: (1) removal of material that the management planner has recommended be handled in place; or (2) an asbestos inspection of the building despite the fact that the loan applicant demonstrates that certain conditions have been satisfied or that all such material has been removed.  Makes immunity inapplicable to a subsidiary of a lending institution if the subsidiary is the person to whom the loan is made. 
  Continues liability for institutions that acquire title to a building through foreclosure as long as the institution maintains an operation and maintenance program. 
  Sets forth requirements for asbestos inspections and management planner qualifications. 
  Amends the Toxic Substances Control Act to prohibit persons from preparing asbestos management plans for public or commercial buildings unless they are accredited. 
  Directs the Administrator of the Environmental Protection Agency to:  (1) promulgate regulations governing the inspection and management of asbestos in public and commercial buildings; and (2) update and revise asbestos guidance documents periodically. 
  Requires, after an asbestos inspection:  (1) the remaining asbestos-containing material to be visually inspected every six months; (2) all remaining material in public and maintenance areas of the building to be prominently labeled; and (3) a report to be completed and made available to maintenance workers.
feat_title: Asbestos Management Incentive Act