WASHINGTON — President Bush yesterday signed legislation aimed at discouraging multimillion-dollar class-action lawsuits, but he made clear he had his sights set on much broader restraints.

Next up, Bush said, should be curbs on asbestos litigation and medical-malpractice awards.

"We're making important progress toward a better legal system," he said during an East Room signing ceremony. "There's more to do."

Surrounded by a bipartisan group of lawmakers, the president hailed the legislation that had been bitterly opposed by consumer groups and trial lawyers but, nonetheless, attracted some Democratic supporters.

Bush said having federal judges take most large class-action lawsuits away from state courts would "prevent trial lawyers from shopping around for friendly local venues." Under the bill, class-action suits seeking $5 million or more would be heard in state court only if the primary defendant and more than one-third of plaintiffs are from the same state.

And limiting lawyers' fees in settlements where plaintiffs win product discounts instead of money, the president said, would keep lawyers from reaping "huge payouts while the plaintiffs ended up with coupons worth only a few dollars." The law links attorney fees to the coupons' redemption rate or actual hours spent on the case.

Exposure standard issued for chemical

The government yesterday issued its first safety standard for perchlorate, a toxic chemical used in rocket fuel and explosives and blamed for widespread contamination of drinking water, especially near many military sites.

The Environmental Protection Agency's new limit for what it considers a safe exposure level will be used in guiding Superfund cleanups and determining whether the agency should go a step further and regulate perchlorate as a drinking-water contaminant.

The limit, which translates to 24.5 parts per billion in drinking water, is the same level recommended by the National Academy of Sciences last month but higher than what EPA proposed two years ago.

Perchlorate is a chemical found in nature, but the academy said its presence in the environment is mainly from its use in rocket fuels, fireworks and explosives. It has been linked to thyroid ailments and is considered particularly dangerous to children.

Deputy trade envoy interim top negotiator

President Bush has picked Deputy U.S. Trade Representative Peter Allgeier to serve on an acting basis as his top trade negotiator, the White House announced yesterday.

The U.S. trade representative post is being vacated by Robert Zoellick, who will start work Tuesday as Condoleezza Rice's top deputy at the State Department.

That's the same day Allgeier will become acting U.S. trade representative.

Those being mentioned to replace Zoellick permanently include Deputy U.S. Trade Representative Josette Shiner, Commerce Undersecretary Grant Aldonas and Robert Kimmitt, head of global policy at Time Warner.

Ailing chief justice to remain at home

Ailing Chief Justice William Rehnquist will be absent from the bench when the Supreme Court returns for the second half of its term next week, the court announced yesterday.

Rehnquist, 80, battling thyroid cancer, plans to skip the two-week cycle of oral arguments that starts Tuesday, court spokeswoman Kathy Arberg said. He will continue reading transcripts of the arguments and voting on decisions, she said.

Rehnquist has been working mainly from home since Oct. 22, when he was hospitalized and then underwent a tracheotomy to help him breathe.