Prescribes procedures by which an eligible buyer may petition for transfer to the Steel Industry Legacy Relief Trust Fund (established by this Act) of all assets of the acquired company which were required to be set aside for provision of the steel retiree benefits, liability for which is relieved by operation of this Act.
Requires eligible buyers to make specified contributions to the Trust for ten years following acquisition of another steel company.
Requires the Secretary to provide for the purchase of coverage of steel retiree health benefits for eligible retirees, surviving spouses, and dependents.
Requires deposit in the Trust Fund of amounts equivalent to certain duties on imports of basic steel mill products.
Establishes the Steel Transition Board to review and approve or disapprove applications for expedited antitrust review of steel company acquisitions by eligible buyers petitioning for assistance under this Act.
Amends the Employee Retirement Income Security Act of 1974 to treat as terminated any qualified defined benefit plan maintained by the acquired company in any qualified acquisition under this Act.
[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4574 Introduced in House (IH)]
107th CONGRESS
2d Session
H. R. 4574
To facilitate the consolidation and rationalization of the steel
industry, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 24, 2002
Mr. English (for himself, Mr. Regula, Ms. Hart, Mr. Aderholt, Mr.
Gekas, and Mr. Shimkus) introduced the following bill; which was
referred to the Committee on Ways and Means, and in addition to the
Committees on Education and the Workforce, and Energy and Commerce, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To facilitate the consolidation and rationalization of the steel
industry, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; CONGRESSIONAL FINDINGS.
(a) Short Title.--This Act may be cited as the ``Steel Industry
Legacy Relief and Transition Act of 2002''.
(b) Congressional Findings.--Congress finds that--
(1) the United States steel industry has been severely
harmed by a record surge of steel imports into the United
States;
(2) this surge in imports has resulted in the loss of more
than 45,000 steel worker jobs, and is the cause of 33
bankruptcies;
(3) the import surge has also forced the United States
steel industry into reduced volume, lower prices, and financial
losses;
(4) on October 22, 2001, the International Trade Commission
found that the domestic steel industry has been severely
injured by the import surge;
(5) the United States steel industry has significant
unfunded pension liabilities;
(6) the United States steel industry has massive retiree
health care liabilities that total $13,000,000,000 and cost the
steel industry almost $1,000,000,000 annually;
(7) these pension and health care liabilities pose a
significant barrier to steel industry consolidation and
rationalization actions that could improve the financial
condition of the industry and reduce the adverse impact of
foreign imports;
(8) steel bankruptcies, job losses, and financial losses
are having a severe adverse effect on the Nation's economy and
having serious negative effects on the tax base of cities,
counties, and States, and on the essential health, education,
and other services that Federal, State, and local government
entities provide to their citizens;
(9) a strong steel industry is necessary to a healthy
economy and to the defense preparedness of the United States;
and
(10) expedited antitrust review procedures for transactions
that will restructure the steel industry in the United States
are necessary to support the President's efforts to negotiate
solutions to international trade problems and to facilitate the
most effective adjustment of the domestic steel industry to
global competition.
TITLE I--AMENDMENTS TO TITLE II OF THE TRADE ACT OF 1974
SEC. 101. ASSISTANCE FOR STEEL INDUSTRY.
(a) In General.--Title II of the Trade Act of 1974 is amended by
striking chapter 4 and inserting the following new chapter:
``CHAPTER 4--ASSISTANCE FOR STEEL INDUSTRY LEGACY COSTS
``Subchapter A--Eligibility and Applications
``SEC. 266. STEEL INDUSTRY LEGACY RELIEF PROGRAM.
``There is established in the Department of Labor a Steel Industry
Legacy Relief Program to be administered by the Secretary of Labor (in
this chapter referred to as the ``Secretary'') for the purpose of
providing certain post-employment retiree health benefits previously
provided by qualified steel companies purchased or otherwise acquired
by an eligible buyer in accordance with this chapter.
``SEC. 266A. DEFINITIONS.
``In this chapter:
``(1) Qualified acquisition.--
``(A) In general.--The term `qualified acquisition'
means a transaction through which a qualified steel
company purchases or otherwise acquires, either through
stock or asset acquisition, all or substantially all of
the steelmaking assets of another qualified steel
company, in any case in which the acquiring company
(and the ultimate parent among the members of the
acquiring company's controlled group) and the company
whose steelmaking assets are acquired are incorporated
under the laws of a State.
``(B) Special rule.--An acquisition shall not be
disqualified from being a qualified acquisition if the
eligible buyer does not purchase or otherwise acquire a
facility that has ceased operations.
``(2) Qualified steel company.--The term `qualified steel
company' means any person if such person, or any member of such
person's controlled group, was engaged, on January 1, 2000, in
steel-based operations.
``(3) Steel-based operations.--The term `steel-based
operations' means--
``(A) the production and manufacture of a product
defined by the American Iron and Steel Institute as a
basic steel mill product, including ingots, slab and
billets, plates, flat-rolled steel, sections and
structural products, bars, rail type products, pipe and tube, and wire
rod;
``(B) the mining or processing of iron ore or
beneficiated iron ore products;
``(C) the production of coke for use in a steel
mill product described in subparagraph (A); and
``(D) the transportation of a product by a person
solely or principally for another person engaged in
operations described in subparagraph (A), (B), or (C),
but only if the person transporting the product is a
member of that other person's controlled group.
``(4) Steel-making assets.--The term `steel-making assets'
means the land, buildings, machinery, equipment, and other
assets that, at any time on or after January 1, 2000, was used
in--
``(A) the production, manufacturing, or
distribution of products described in paragraph (3)(A);
``(B) the mining, processing, or distribution of
iron ore or beneficiated iron ore products;
``(C) the production of coke for use in a steel
mill product described in paragraph (3)(A); or
``(D) the transportation of a product by a person
solely or principally for another person engaged in
operations described in subparagraph (A), (B), or (C),
but only if the person transporting the product is a
member of that other person's controlled group.
``(5) Steel retiree health benefit.--
``(A) In general.--The term `steel retiree health
benefit' means a retiree health benefit provided under
an employee benefit plan, as in effect on the date of
the enactment of this chapter, in any case in which--
``(i) such plan is maintained on such date
by a qualified steel company, or a qualified
steel company is obligated on such date to
contribute to such plan under an agreement
entered into by such company and an employee
organization representing employees of such
company, and
``(ii) such plan, as so in effect, provides
such benefit to a participant or a
participant's beneficiary in connection with
such participant's retirement under the plan.
``(B) Benefits under acquired company's plan
treated as retiree health benefits.--Such term includes
any benefit treated under applicable law in connection
with a qualified acquisition as a retiree health
benefit provided to a participant or a participant's
beneficiary by a plan to which the acquired company is
obligated to contribute, irrespective of whether or to
what extent the participant was employed by the
acquired company.
``(6) Acquired company.--The term `acquired company' means
a qualified steel company all or substantially all of whose
steelmaking assets are purchased or otherwise acquired in a
qualified acquisition.
``(7) Eligible buyer.--The term `eligible buyer' means a
qualified steel company that meets the requirements for
carrying out a qualified acquisition.
``(8) Covered benefits.--The term `covered benefits'
means--
``(A) steel retiree health benefits of any
participant under any employee benefit plan sponsored
by an acquired company, as of the date of acquisition,
including benefits that are attributable to
rationalization, except that the term does not include
steel retiree health care benefits provided by actively
operating nonsteel subsidiaries of an acquired company;
``(B) steel retiree health benefits for employees
of an eligible buyer that are attributable to
rationalization; and
``(C) steel retiree health benefits provided by a
closed company as of the date the company ceases to
operate.
``(9) Rationalization.--The term `rationalization' means--
``(A) the voluntary or involuntary termination of
an employee of an acquired company that occurs within
five years after the consummation of the qualified
acquisition; or
``(B) the voluntary or involuntary termination of
an employee of an eligible buyer pursuant to an action
by the eligible buyer designed to reduce production
capacity that occurs within five years after the
consummation of a qualified acquisition.
``(10) Closed company.--The term `closed company' means--
``(A) a qualified steel company that ceases
operations (as defined by the Secretary) on or after
January 1, 2000, and which has dismantled its
facilities, or which the Secretary certifies is
incapable of operating in the future due to facility
conditions, operating costs, or similar reasons; or
``(B) a qualified steel company which on or after
January 1, 2000, and before May 1, 2002, has dissolved
and is no longer liable for the provision of steel
retiree health benefits.
``(11) Controlled group.--The term `controlled group' has
the meaning given that term in section 52(a) of the Internal
Revenue Code of 1986.
``(12) Board.--The term `Board' means the Steel Transition
Board established under section 269.
``(13) State.--The term `State' means any State, the
District of Columbia, and any territory or possession of the
United States.
``(14) Other terms.--Any term used in this chapter that is
not defined in this section and is defined in section 3 or
4001(a)(14(A) of the Employee Retirement Income Security Act
of 1974 shall have the meaning given that term in such section 3 or
4001(a)(14)(A) of that Act.
``SEC. 266B. PETITIONS AND DETERMINATIONS.
``(a) Filing of Petitions.--A petition for a certification of
eligibility for assistance under this chapter may be filed with the
Secretary by--
``(1) an eligible buyer that makes a qualified acquisition
or rationalization, or its representative, or
``(2) a person eligible for covered benefits, or that
person's representative.
``(b) Certification of Eligible Buyer.--
``(1) Effect and basis of determination.--If the Secretary
provides a certification that an eligible buyer is eligible for
assistance under this chapter with respect to covered benefits,
the eligible buyer shall not be obligated to provide such
covered benefits to any person or entity. The Secretary shall
certify steel retiree health benefits as eligible for coverage
under section 267 if the Secretary determines that--
``(A) the steel retiree health benefits are covered
benefits within the meaning of section 266A; and
``(B) all assets, as determined in accordance with
rules prescribed by the Secretary, which, under the
terms of an applicable collective bargaining agreement,
were required to be set aside under an employee benefit
plan or otherwise for the provision of the steel
retiree benefits the liability for which is relieved by
operation of this subsection, are identified and
available for transfer to the Steel Industry Legacy
Relief Trust Fund as of the date of consummation of the
qualified acquisition.
The assets required to be transferred under subparagraph (B)
shall not include voluntary contributions, including voluntary
contributions made pursuant to a voluntary employees
beneficiary association trust.
``(2) Determination of transfer amount.--The amount of the
assets to be transferred under paragraph (1)(B) shall be
determined at the time of the certification under this
subsection and shall include interest from the time of the
determination to the time of transfer. Such amount shall be
reduced by any payments from such assets which are made, after
the determination, by the qualified steel company or applicable
acquiring company for the provision of steel retiree benefits
for which such assets were set aside and the liability for
which is relieved by operation of this subsection.
``(3) Transfer of funds.--Upon making a certification under
paragraph (1), or on the date of the consummation of the
qualified acquisition, whichever occurs later, the Secretary
shall ensure that the funds described in paragraph (1)(B) are
transferred to the Steel Industry Legacy Relief Trust Fund.
``(c) Contribution Requirements.--
``(1) In general.--If under subsection (b) the Secretary
certifies steel retiree health benefits of an acquired company
as eligible for coverage under section 267, the eligible buyer
shall pay to the Trust Fund for each of the years in the 10-
year period beginning on the date of consummation of the
applicable qualified acquisition the amount determined under
paragraph (2) with respect to the steelmaking assets acquired
by such company or person.
``(2) Amount of liability.--
``(A) In general.--The amount required to be paid
under paragraph (1) for any year shall be equal to $5
per ton of products described in section 266A(3)(A),
(B), and (C) that are attributable to the steelmaking
assets of a qualified steel company that are the
subject of a qualified acquisition and are transported
to a person other than a member of the controlled group
of that qualified steel company.
``(B) Reductions in liability.--The amount of any
liability under subparagraph (A) for any year shall be
reduced by the amount of any assets transferred to the
Trust Fund under subsection (b)(3), reduced by any
portion of such amount applied to a liability for any
preceding year.
``(d) Certification of Closed Company.--The Secretary shall certify
a steel company as a closed company if the Secretary determines that
the company is a closed company under section 266A(10).
``(e) Certification of Persons.--The Secretary shall certify a
person as eligible for assistance under section 267 if the Secretary
determines that such person is eligible to receive covered benefits.
``(f) Timing of Certifications.--The Secretary shall make a
determination on a petition under this section as soon as possible
after the date on which the petition is filed, but in any event not
later than 60 days after the filing date.
``(g) Making Determinations Prior to Acquisition.--The Secretary
shall provide for making determinations of eligibility under this
section before the date of consummation of the applicable qualified
acquisition if a petition for certification is submitted 60 days or
more in advance of such date.
``Subchapter B--Assistance
``SEC. 267. PAYMENT OF PREMIUMS FOR RETIREE HEALTH BENEFITS.
``The Secretary shall provide for the purchase of coverage of steel
retiree health benefits for retirees, surviving spouses, and dependents
who are certified to be eligible for assistance pursuant to
determinations made under section 266B.
``SEC. 267A. COMMENCEMENT OF COVERAGE.
``(a) In General.--Subject to subsection (b), if eligibility for
assistance under this chapter has been determined before the date of
consummation of a qualified acquisition or a rationalization, coverage
under section 267 shall begin as of the date of consummation or
rationalization.
``(b) Limitation.--Payment of benefits under subsection (a) shall
be effective only if funds identified pursuant to section 266B(b)(2)
with respect to the acquired company are transferred to the Steel
Industry Legacy Relief Trust Fund as of the date of consummation of the
qualified acquisition.
``SEC. 267B. EXTENT OF BENEFIT COVERAGE.
``Benefit coverage for a person under section 267 shall not exceed
the steel retiree health benefit coverage for which the person would
otherwise have been eligible.
``SEC. 267C. CONTRACT AUTHORITY.
``The Secretary shall enter into such contracts as the Secretary
considers necessary to provide for adequate geographic coverage and to
provide for adequate cost controls for the benefits provided under
section 267.
``SEC. 267D. COSTS.
``The cost of assistance provided pursuant to section 267 shall be
paid from the Steel Industry Legacy Relief Trust Fund.
``Subchapter C--Steel Industry Legacy Relief Trust Fund
``SEC. 268. ESTABLISHMENT.
``There is established in the Treasury of the United States a trust
fund to be known as the `Steel Industry Legacy Relief Trust Fund'
(hereinafter in this chapter referred to as the `Trust Fund'),
consisting of such amounts as may be appropriated or credited to the
Trust Fund as provided in this subchapter.
``SEC. 268A. DUTIES ON STEEL PRODUCTS.
``There shall be deposited into the Trust Fund amounts equivalent
to the duties on imports of basic steel mill products described in
section 266A(3)(A) that are collected as a result of action taken under
title II of the Trade Act of 1974 with respect to imports of such
products.
``SEC. 268B. VEBA FUNDS.
``There shall be deposited into the Trust Fund the amounts of all
funds described in section 266B(b)(1)(B) which are transferred to the
Trust Fund pursuant to an acquisition of an acquired company.
``SEC. 268C. CONTRIBUTIONS.
``There shall be deposited into the Trust Fund the amounts of all
contributions described in section 266B(c) which are paid to the Trust
Fund pursuant to the acquisition of an acquired company.
``SEC. 268D. ADDITIONAL FUNDS.
``There are hereby authorized to be appropriated to the Trust Fund
such additional sums as may be required to make the expenditures
referred to in section 267.
``SEC. 268E. USE OF AMOUNTS IN TRUST FUND.
``Amounts in the Trust Fund shall be available for making
expenditures to meet those obligations of the United States--
``(1) incurred under this chapter; and
``(2) for those portions of the administrative expenses of
the Department of Labor which are attributable to activities
described in this chapter.
``SEC. 268F. PAYMENT TO SECRETARY OF LABOR.
``The Secretary of the Treasury shall pay from time to time from
the Trust Fund such amounts as the Secretary of Labor certifies are
necessary to make the expenditures provided for by this chapter, and
the payments of administrative expenses referred to in section 268E(2).
``SEC. 268G. DUTIES OF SECRETARY OF THE TREASURY.
``(a) Management of Fund.--It shall be the duty of the Secretary of
the Treasury to hold and manage the Trust Fund.
``(b) Report to Congress.--The Secretary of the Treasury shall
report to the Congress, not later than December 31 of each year, on the
financial condition and the results of the operations of the Trust Fund
during the preceding fiscal year and on its expected condition and
operations during the current and succeeding 4 fiscal years. Such
report shall be printed as a document of the House of Representatives
of the session of the Congress in which the report is made.
``(c) Investment of Amounts in Trust Fund.--The Secretary of the
Treasury shall invest such portion of the Trust Fund as is not, in the
judgment of the Secretary, required to meet current withdrawals.
``Subchapter D--Steel Transition Board
``SEC. 269. STEEL TRANSITION BOARD.
``(a) Establishment.--There is established the Steel Transition
Board to review and approve or disapprove applications for expedited
antitrust review under section 269A of this Act.
``(b) Composition.--The Board shall consist of--
``(1) the Secretary or the designee of the Secretary;
``(2) the Secretary of Commerce or the designee of the
Secretary; and
``(3) the Attorney General or the designee of the Attorney
General.
``SEC. 269A. PETITIONS FOR APPROVAL.
``(a) Petition.--A petition for a certification of eligibility for
assistance under this chapter may include an application for expedited
antitrust review by the Board.
``(b) Expedited Review.--An application for expedited antitrust
review of a transaction by the Board shall include 3 copies of any
premerger notification materials filed by any person under section 7A
of the Clayton Act (15 U.S.C. 18a) for such transaction, and any other
information required by the Board.
``(c) Disclosure.--Any information or documentary material filed
with the Board pursuant to this section shall be exempt from disclosure
under section 552 of title 5, United States Code, and no such
information or documentary material may be made public, except as may
be relevant to any administrative or judicial action or proceeding.
Nothing in this section is intended to prevent disclosure of such
information or documentary material to any representative of the Board
or to the Congress (including any duly authorized committee of the
Congress).
``(d) Rules.--Not later than 90 days after the date of enactment of
this subchapter, the Secretary of Labor shall issue rules governing
applications for expedited antitrust review and review of such
applications by the Board. Such rules shall specify any information to
be provided by applicants under this section, the procedures for
hearing and presenting evidence relevant to such applications, and
other matters determined to be appropriate by the Secretary.
``(e) Determination.--Not later than 120 days after the Board
determines that an application under this section is substantially
complete, the Board shall approve, disapprove, or approve such
application subject to conditions.
``(f) Review.--Any person with a substantial interest in a final
decision by the Board may obtain review of such decision in the United
States Court of Appeals for the District of Columbia Circuit, by filing
a written petition within 30 days from the date of the final decision.
A copy of such petition shall be transmitted forthwith by the clerk of
the court to the Board. It shall be the duty of the senior judge of the
court, qualified to participate in the consideration of the case on the
merits, to designate immediately 3 circuit judges of the court, 1 of
whom shall be such qualified senior judge and the other 2 of whom shall
be 2 circuit judges next in order of seniority to such qualified senior
judge, to hear and determine the appeal in such case. It shall be the
duty of the court, so comprised, to assign the case for argument at the
earliest practicable date and to hear and determine the same. The
decision of the 3 circuit judges so designated, or of a majority in
number thereof, shall be final, and there shall be no review of such
decision by additional circuit judges. The findings of the Board as to
the facts, if supported by evidence, shall be conclusive. The
conclusions of law of the Board may be set aside only if the court
finds they are arbitrary and capricious. A decision by the court under
this section is reviewable only by the Supreme Court under section 1254
of title 28, United States Code.
``SEC. 269B. ANTITRUST LAWS.
``(a) Application of the Antitrust Laws.--The antitrust laws shall
not apply to any transaction approved by the Board pursuant to this
subchapter.
``(b) Definition.--For purposes of this subchapter, the term
`antitrust laws'--
``(1) has the meaning given it in subsection (a) of the
first section of the Clayton Act (15 U.S.C. 12(a)), except that
such term includes section 5 of the Federal Trade Commission
Act (15 U.S.C. 45) to the extent such section 5 applies to
unfair methods of competition; and
``(2) includes any State law similar to the laws referred
to in paragraph (1).
``SEC. 269C. STANDARD FOR APPROVAL.
``(a) Qualified Acquisitions.--In its expedited antitrust review of
applications under this subchapter, the Board shall determine whether
the application relates to a qualified acquisition within the meaning
of section 266A.
``(b) Public Interest.--If the Board determines that the
application relates to a qualified acquisition, the Board shall
determine whether any transaction or transactions to which the
application relates is in the public interest. In making such
determination, the Board shall consider both conventional standards of
antitrust law and the establishment of a globally competitive domestic
steel industry, taking into account--
``(1) the global nature of competition in steel markets;
``(2) the urgent need for the steel industry in the United
States to adjust to current and future global market
conditions; and
``(3) the national security and foreign policy objectives
of the United States, including international comity.
``SEC. 269D. SUNSET.
``This subchapter is repealed 7 years after the date of the
enactment of this subchapter.
``Subchapter E--General Provisions
``SEC. 270. RECORDKEEPING.
``(a) Providing Records to the Secretary.--Each eligible buyer
receiving assistance under this chapter shall provide to the Secretary
records from the acquired company acquired by that eligible buyer which
fully disclose the nature and amount of covered benefits related to the
acquired company's employee benefit plans which will facilitate the
accurate determination and subsequent maintenance of coverage by the
Secretary pursuant to sections 266B and 267. An eligible buyer shall
provide such other records as the Secretary may prescribe in connection
with the determination of eligibility for coverage and the
administration of coverage.
``(b) Keeping Records.--Any entity that receives payments from the
Secretary under section 267 shall keep such records as the Secretary
may prescribe.
``SEC. 270A. PENALTIES.
``Whoever makes a false statement of a material fact knowing it to
be false, or knowingly fails to disclose a material fact, or whoever
willfully overvalues any obligation, for the purpose of obtaining
money, property, or anything of value under this chapter, shall be
fined not more than $5,000, or imprisoned for not more than 2 years, or
both.
``SEC. 270B. CIVIL ACTIONS.
``In providing financial assistance under this chapter, the
Secretary may sue and be sued in any court of record of a State having
general jurisdiction or in any United States district court, and such
jurisdiction is conferred upon such district court to determine such
controversies without regard to the amount in controversy, except that
no attachment, injunction, garnishment, or other similar process, mesne
or final, shall be issued against the Secretary or the property of the
Secretary. Nothing in this section shall be construed to except the
activities pursuant to section 267 from the application of sections
516, 547, and 2679 of title 28, United States Code.
``SEC. 270C. REGULATIONS.
``The Secretary shall prescribe such regulations as may be
necessary to carry out the provisions of this chapter.''.
(b) Conforming Amendment.--The table of contents of the Trade Act
of 1974 is amended by striking the items relating to chapter 4 of title
II and inserting the following:
``Chap``subchapter a--eligibility and applicationsCosts
``Sec. 266. Steel Industry Legacy Relief Program.
``Sec. 266A. Definitions.
``Sec. 266B. Pe``subchapter b--assistance.
``Sec. 267. Payment of premiums for retiree health benefits.
``Sec. 267A. Commencement of coverage.
``Sec. 267B. Extent of benefit coverage.
``Sec. 267C. Contract authority.
``subchapter c--steel industry legacy relief trust fund
``Sec. 268. Establishment.
``Sec. 268A. Duties on steel products.
``Sec. 268B. VEBA funds.
``Sec. 268C. Contributions.
``Sec. 268D. Additional funds.
``Sec. 268E. Use of amounts in trust fund.
``Sec. 268F. Payment to Secretary of Labor.
``Sec. 26``subchapter d--steel transition boardy.
``Sec. 269. Steel Transition Board.
``Sec. 269A. Petitions for approval.
``Sec. 269B. Antitrust laws.
``Sec. 269C. Standard for approval.
``Sec. 269D``subchapter e--general provisions
``Sec. 270. Recordkeeping.
``Sec. 270A. Penalties.
``Sec. 270B. Civil actions.
``Sec. 270C. Regulations.''.
SEC. 102. EFFECTIVE DATE.
The amendments made by this title shall take effect on the date of
the enactment of this Act.
TITLE II--AMENDMENTS TO TITLE IV OF THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974
SEC. 201. TERMINATION OF PENSION PLANS IN CONNECTION WITH ACQUISITIONS
OF STEEL COMPANIES.
(a) In General.--Title IV of the Employee Retirement Income
Security Act of 1974 is amended by inserting after section 4048 (29
U.S.C. 1348) the following new section:
``treatment of certain steel plans involved in qualified acquisitions
``Sec. 4049. (a) Terminations in Connection with Qualified
Acquisitions.--In the case of any qualified acquisition of a qualified
steel company, any qualified defined benefit plan which is maintained
by the acquired company immediately before the acquisition shall be
treated as terminated under this title.
``(b) Treatment of Plan Assets and Liabilities.--
``(1) In general.--Subject to paragraph (2), all assets and
liabilities of the plan treated as terminated under subsection
(a) shall continue to be treated as assets and liabilities of
such terminated plan, notwithstanding any allocation of such
assets and liabilities to spun off plans in accordance with
section 414(l) of the Internal Revenue Code of 1986.
``(2) Exclusion of assets and liabilities acquired by
active controlled group members not engaged in steel-based
operations.--Subsection (a) shall not apply with respect to any
plan assets or liabilities which are acquired, in connection
with the qualified acquisition, by any person which is a member
of the controlled group of the person acquiring the qualified
steel company and is, at the time of the qualified acquisition,
in active operation but whose business does not include steel-
based operations (or by any plan to which any person who is
such a member is obligated to contribute). The acquired company
shall provide for separate treatment as a terminated plan of so
much of the acquired plan as does not consist of such assets
and liabilities.
``(c) Applicability With Respect to All Participants and
Beneficiaries.--No asset or liability shall be excluded from treatment
as an asset or liability of the eligible plan in connection with any
participant, or beneficiary thereof, on the basis of any classification
of a participant as an active employee or as a retiree.
``(d) Exclusion of Assets and Liabilities Subsequently Accrued.--
This section shall not apply with respect to assets or liabilities
accruing after the date of the qualified acquisition.
``(e) Petition Procedure.--The Secretary of Labor shall make
determinations under this subsection, in consultation with the acquired
company, in accordance with procedures which shall be prescribed by the
Secretary. Any such determination in connection with a qualified
acquisition, shall be made only pursuant to a petition for such
determination filed with the Secretary not later than 60 days before
the effective date of the acquisition. The Secretary shall provide, to
the maximum extent practicable, for the conduct of the petition process
pursuant to this paragraph in conjunction with the petition process
established under section 268 of the Trade Act of 1984.
``(f) Definitions.--For purposes of this section--
``(1) Qualified acquisition.--The term `qualified
acquisition' means a transaction through which a qualified
steel company purchases or otherwise acquires, either through
stock or asset acquisition, all or substantially all of the
steelmaking assets of another qualified steel company, in any
case in which the acquiring company (and the ultimate parent
among the members of the acquiring company's controlled group)
and the company whose steelmaking assets are acquired are
incorporated under the laws of a State.
``(2) Qualified plan.--The term `qualified plan' means a
defined benefit plan (as defined in section 3(35)) if each
trust forming a part of the plan is a qualified trust under
section 401(a) of the Internal Revenue Code of 1986.
``(3) Qualified steel company.--The term `qualified steel
company' means any person if such person, or any member of such
person's controlled group, was engaged, on January 1, 2000, in
steel-based operations.
``(4) State.--The term `State' means any State, the
District of Columbia, and any territory or possession of the
United States.
``(5) Steel-based operations.--The term `steel-based
operations' means--
``(A) the production and manufacture of a product
defined by the American Iron and Steel Institute as a
basic steel mill product, including ingots, slab and
billets, plates, flat-rolled steel, sections and
structural products, bars, rail type products, pipe and
tube, and wire rod;
``(B) the mining or processing of iron ore or
beneficiated iron ore products;
``(C) the production of coke for use in a still
mill product described in subparagraph (A); and
``(D) the transportation of a product by a person
solely or principally for another person engaged in
operations described in subparagraph (A), (B), or (C),
but only if the person transporting the product is a
member of that other person's controlled group.
``(6) Steel-making assets.--The term `steel-making assets'
means the land, buildings, machinery, equipment, and other
assets that, at any time on or after January 1, 2000, was used
in--
``(A) the production, manufacturing, or
distribution or products described in paragraph (5)(A);
``(B) the mining, processing, or distribution of
iron ore or beneficiated iron ore products;
``(C) the production of coke for use in a steel
mill product described in paragraph (5)(A); or
``(D) the transportation of a product by a person
solely or principally for another person engaged in
operations described in subparagraph (A), (B), or (C),
but only if the person transporting the product is a
member of that other person's controlled group.
``(7) Controlled group.--The term `controlled group' has
the meaning given that term in section 52(a) of the Internal
Revenue Code of 1986.''.
(b) Clerical Amendment.--The table of contents in section 1 of such
Act is amended by inserting after the item relating to section 4048 the
following new item:
``Sec. 4049. Treatment of certain steel plans involved in qualified
acquisitions.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to qualified acquisitions occurring on or after the
date of the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committees on Education and the Workforce, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Education and the Workforce, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Education and the Workforce, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committees on Education and the Workforce, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Health, for a period to be subsequently determined by the Chairman.
Referred to the Subcommittee on Employer-Employee Relations.
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