Prescribes qualifying events (acquisition, closing, election, or bankruptcy transfer) as a result of which the United States shall assume liability for the provision of steel retiree benefits for each eligible retiree and eligible beneficiary certified for participation in the retiree benefits program.
Requires transfer to the Trust Fund by a qualified steel company and any applicable acquiring company of all assets 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. Requires contributions to the Trust Fund by such companies.
[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4646 Introduced in House (IH)]
107th CONGRESS
2d Session
H. R. 4646
To remedy certain effects of injurious steel imports by protecting
benefits of steel industry retirees and encouraging the strengthening
of the American steel industry.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 2, 2002
Mr. Dingell (for himself, Mr. Visclosky, Mr. LaHood, Mr. Phelps, Mr.
Brown of Ohio, Mr. Gephardt, Mr. Murtha, Mr. Ross, Mr. Sawyer, Mr.
Quinn, Mr. Holden, Mr. Cardin, Mr. Stupak, Mr. Kucinich, Mrs. Jones of
Ohio, Mr. Strickland, Mr. Levin, Mr. Matsui, Mr. George Miller of
California, Mr. Oberstar, Mr. Doyle, Mr. Coyne, Mr. Conyers, Ms.
Pelosi, Mr. Frost, Mr. Bonior, Mr. Shimkus, Ms. Kaptur, Mrs. Lowey, Ms.
DeLauro, Mr. LaFalce, Mr. Serrano, Mr. Horn, Mr. Clyburn, Mr. Olver,
Mrs. Meek of Florida, Mr. Edwards, Mr. Kennedy of Rhode Island, Mr.
Hinchey, Ms. Roybal-Allard, Mr. Jackson of Illinois, Ms. Kilpatrick,
Ms. Rivers, Mr. Fattah, Mr. Lipinski, Mr. Kleczka, Mr. Rahall, Mr.
Mascara, Mr. Blagojevich, Mr. Pallone, Mr. Lynch, Ms. Brown of Florida,
Mr. Hilliard, Mr. Costello, Mr. Green of Texas, Mr. McNulty, Ms. Carson
of Indiana, Mr. Sanders, Mr. Barcia, Mr. Towns, Mr. Sandlin, Mr. Davis
of Illinois, Mr. Rush, Mr. Matheson, Ms. Lee, Mr. Carson of Oklahoma,
Mr. Kildee, Mr. Clay, Mr. Gordon, Ms. DeGette, Mr. Cummings, Mr.
Boswell, Mr. Reyes, Ms. Berkley, Mr. Weiner, Mr. Lantos, Mr. Moore,
Mrs. McCarthy of New York, Ms. Millender-McDonald, Ms. Slaughter, Mr.
Holt, Mr. Maloney of Connecticut, Mr. McGovern, Mr. Bishop, Mr. Engel,
Mr. Evans, Mr. Filner, Mr. Udall of New Mexico, Mr. Rodriguez, Ms.
McKinney, Mr. Hoeffel, Mr. Baca, Mr. Abercrombie, Mr. Nadler, Mr.
Gutierrez, Mr. Wynn, and Mr. Payne) introduced the following bill;
which was referred to the Committee on Energy and Commerce, and in
addition to the Committee on Education and the Workforce, 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 remedy certain effects of injurious steel imports by protecting
benefits of steel industry retirees and encouraging the strengthening
of the American steel industry.
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 AND PURPOSE.
(a) Short Title.--This Act may be cited as the ``Steel Industry
Legacy Relief Act of 2002''.
(b) Congressional Findings and Purpose.--
(1) Findings.--Congress finds the following:
(A) The United States Department of Commerce has
documented that American steelworkers and their
employers have been forced over the last 30 years to
compete in a global steel market in which foreign
governments have engaged in market distorting practices
that to this day sustain enormous overcapacity in world
steel supplies.
(B) The United States International Trade
Commission, in its recent investigation of steel
imports to the United States under section 201 of the
Trade Act of 1974, has concluded that surges of
imported steel since the Asian crisis of 1997 have
caused serious injury to American producers of most
steel products.
(C) Since 1997, 33 American steel companies have
been forced to seek bankruptcy protection, over 45,000
steelworkers have lost their jobs, and over 100,000
steel retirees have suffered a complete cutoff of vital
medical benefits.
(D) Many steel industry retirees were forced into
retirement as a result of the restructurings of the
1980's and 1990's, and then, as a second blow,
recently lost their retiree medical insurance.
(E) Recent steel imports have pushed steel prices
to such record lows that surviving American steelmakers
face imminent financial collapse, and these firms
employ over 185,000 workers in family-supporting jobs
and provide crucial medical coverage to hundreds of
thousands of retirees and beneficiaries.
(F) As American steel companies continue to weaken
or fail, a very different trend is underway in other
countries where governments shoulder a substantial
portion of retirement costs and foreign steelmakers are
now merging into companies of unprecedented size and
market influence.
(G) If the American steel industry is to survive
and compete, it must transform itself from a group of
relatively small producers into a consolidated market
force.
(H) For many American steel companies, the ability
to consolidate is undermined by the burden of retiree
health obligations.
(2) Purpose.--It is the purpose of this Act to ensure
that--
(A) retired steelworkers receive health care
benefits coverage; and
(B) the American steel industry can continue to
provide livelihoods to tens of thousands of American
workers, their families, and communities through the
receipt of assistance in consolidating its position in
world steel markets.
SEC. 2. DEFINITIONS.
(a) Terms Relating to Benefits Program.--For purposes of this Act:
(1) Retiree benefits program.--The term ``retiree benefits
program'' means the Steel Industry Retiree Benefits Protection
Program established under this Act to provide medical benefits
to eligible retirees and beneficiaries.
(2) Steel retiree benefits.--
(A) In general.--The term ``steel retiree
benefits'' means medical, surgical, or hospital
benefits, whether furnished through insurance or
otherwise, which are provided to retirees and eligible
beneficiaries in accordance with an employee benefit
plan (within the meaning of section 3(3) of the
Employee Retirement Income Security Act of 1974)
which--
(i) is established or maintained by a
qualified steel company or an applicable
acquiring company; and
(ii) is in effect on or after January 1,
2000.
Such term includes benefits provided under a plan
without regard to whether the plan is established or
maintained pursuant to a collective bargaining
agreement.
(B) Retiree.--
(i) In general.--The term ``retiree'' means
an individual who has met any years of service
or disability requirements under an employee
benefit plan described in subparagraph (A)
which are necessary to receive steel retiree
benefits under the plan.
(ii) Certain retirees included.--An
individual shall not fail to be treated as a
retiree because the individual--
(I) retired before January 1, 2000;
or
(II) was not employed at the
steelmaking assets of a qualified steel
company.
(b) Terms Relating to Steel Companies.--For purposes of this Act:
(1) Qualified steel company.--
(A) In general.--The term ``qualified steel
company'' means any person which on January 1, 2000,
was engaged in--
(i) the production or manufacture of a
steel mill product;
(ii) the mining or processing of iron ore
or beneficiated iron ore products; or
(iii) the production of coke for use in a
steel mill product.
(B) Transportation.--The term ``qualified steel
company'' includes any person which on January 1, 2000,
was engaged in the transportation of any steel mill
product solely or principally for another person
described in subparagraph (A), but only if such person
and such other person are related persons.
(C) Successors in interest.--The term ``qualified
steel company'' includes any successor in interest of a
person described in subparagraph (A) or (B).
(2) Steelmaking assets and steel mill products.--
(A) Steelmaking assets.--The term ``steelmaking
assets'' means any land, building, machinery,
equipment, or other fixed assets located in the United
States which, at any time on or after January 1, 2000,
have been used in the activities described in
subparagraph (A) or (B) of paragraph (1).
(B) Steel mill product.--The term ``steel mill
product'' means any product defined by the American
Iron and Steel Institute as a steel mill product.
(3) Acquiring company.--The term ``acquiring company''
means any person which acquired on or after January 1, 2000,
steelmaking assets of a qualified steel company with respect to
which a qualifying event has occurred.
(c) Other Definitions.--For purposes of this Act:
(1) Related person.--The term ``related person'' means,
with respect to any person, a person who--
(A) is a member of the same controlled group of
corporations (within the meaning of section 52(a) of
the Internal Revenue Code of 1986) as such person; or
(B) is under common control (within the meaning of
section 52(b) of such Code) with such person.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
(3) Trust fund.--The term ``Trust Fund'' means the Steel
Industry Legacy Relief Trust Fund established under subtitle C.
TITLE I--STEEL INDUSTRY RETIREE BENEFITS PROTECTION PROGRAM
Subtitle A--Establishment
SEC. 101. ESTABLISHMENT.
There is established a Steel Industry Retiree Benefits Protection
program to be administered by the Secretary and the Board of Trustees
of the Trust Fund in accordance with the provisions of this Act for the
purpose of providing medical benefits to eligible retirees and eligible
beneficiaries certified as participants in the program under subtitle
B.
Subtitle B--Relief and Assumption of Liability, Eligibility, and
Certification
SEC. 111. RELIEF AND ASSUMPTION OF LIABILITY.
(a) In General.--If--
(1) the Secretary certifies under section 112 that there
was a qualifying event with respect to a qualified steel
company,
(2) the asset transfer requirements of subsection (b) are
met with respect to the qualifying event, and
(3) the qualified steel company and any acquiring company
assumes their respective liability to make any contributions
required under subsection (c),
then the United States shall assume liability for the provision of
steel retiree benefits for each eligible retiree and eligible
beneficiary certified for participation in the retiree benefits program
under section 113 (and the qualified steel company, any predecessor or
successor, and any related person to such company, predecessor, or
successor shall be relieved of any liability for the provision of such
benefits). The United States shall be treated as satisfying any
liability assumed under this subsection if benefits are provided to
eligible retirees and eligible beneficiaries under the retiree benefits
program provided in subtitle C.
(b) Required Asset Transfers.--
(1) In general.--The requirements of this subsection are
met if the qualified steel company and any applicable acquiring
company transfer to the Trust Fund 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 (determined without regard to this
subsection) is relieved by operation of subsection (a). The
assets required to be transferred shall not include voluntary
contributions, including voluntary contributions made pursuant
to a voluntary employees beneficiary association trust, which
are in excess of the contributions described in the preceding
sentence.
(2) Determination.--The amount of the assets to be
transferred under paragraph (1) shall be determined at the time
of the certification under section 112 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 (determined without
regard to this subsection) is relieved by operation of
subsection (a).
(c) Contribution Requirements.--
(1) Contributions based on ownership of steelmaking
assets.--
(A) In general.--If there is a qualifying event
certified under section 112 with respect to a qualified
steel company--
(i) the qualified steel company shall
assume the obligation to pay, and
(ii) if the qualified steel company
transferred on or after January 1, 2000, any of
its steelmaking assets, the qualified steel
company and any acquiring company acquiring
such assets as part of (or after) a qualifying
event shall assume the obligation to pay,
to the Trust Fund for each of the years in the 10-year
period beginning on the date of the qualifying event
its ratable share of the amount determined under
subparagraph (B) with respect to the steelmaking assets
owned by such company or person.
(B) Amount of liability.--
(i) In general.--The amount required to be
paid under subparagraph (A) for any year shall
be equal to--
(I) $5 per ton of products
described in section 2(b)(1)(A)(i) and
(iii), and
(II) $0.30 per ton of products
described in section 2(b)(1)(A)(ii),
that are attributable to the steelmaking assets
which are the subject of the qualifying event
and shipped to a person other than a related
person. If 2 or more persons own steelmaking
capacity or assets, the liability under this
clause shall be allocated ratably on the basis
of their respective ownership interests. The
determination under this clause for any year
shall be made on the basis of shipments during
the calendar year preceding the calendar year
in which such year begins.
(ii) Reductions in liability.--The amount
of any liability under clause (i) for any year
shall be reduced by the amount of any assets
transferred to the Trust Fund under subsection
(b), reduced by any portion of such amount
applied to a liability for any preceding year.
If 2 or more persons are liable under
subparagraph (A) with respect to any qualifying
event, any reduction with respect to assets
transferred to the Trust Fund under subsection
(b) shall be allocated ratably among such
persons on the basis of their respective
liabilities or in such other manner as such
persons may agree.
(2) Joint and several liability.--Any related person of any
person liable for any payment under this subsection shall be
jointly and severally liable for the payment.
(3) Time and manner of payment.--The Secretary shall
establish the time and manner of any payment required to be
made under this subsection, including the payment of interest.
SEC. 112. QUALIFYING EVENTS.
(a) In General.--For purposes of this Act, the term ``qualifying
event'' means any--
(1) qualified acquisition;
(2) qualified closing;
(3) qualified election; and
(4) qualified bankruptcy transfer.
(b) Qualified Acquisition.--
(1) In general.--For purposes of this Act, the term
``qualified acquisition'' means any arm's-length transaction or
series of related transactions--
(A) under which a person described in paragraph (2)
(whether or not a qualified steel company) acquires by
purchase, merger, stock acquisition, or otherwise all
or substantially all of the steelmaking assets held by
a qualified steel company as of January 1, 2000; and
(B) which occur on and after January 1, 2000, and
before the date which is 2 years after the date of the
enactment of this Act.
(2) Persons to whom applicable.--A person is described in
this paragraph if--
(A) such person, or the ultimate parent in such
person's controlled group (within the meaning of
section 52(a) of the Internal Revenue Code of 1986) was
incorporated under the laws of any State as of January
1, 2000; or
(B) in any case in which such steelmaking assets
are acquired by a person not described in subparagraph
(A), such assets are acquired by such person only after
the qualified steel company whose assets are being
acquired provides public notice of its intention to
sell or otherwise transfer substantially all its
steelmaking assets, and a period of 6 months has transpired to provide
to all persons who are likely to have a substantial interest in making
an offer for such assets and who meet the requirements of subparagraph
(A) a reasonable opportunity to make a bid for such steelmaking assets.
(3) Treatment of related persons.--The term ``qualified
acquisition'' does not include any acquisition by a related
person.
(c) Qualified Closing.--For purposes of this Act:
(1) In general.--The term ``qualified closing'' means--
(A) the permanent cessation on or after January 1,
2000, and before January 1, 2004, by a qualified steel
company operating under the protection of chapter 11 or
7 of title 11, United States Code, of all activities
described in subparagraph (A) or (B) of paragraph (1)
of section 2(b); or
(B) the transfer on or after January 1, 2000, and
before January 1, 2004, by a qualified steel company
operating under the protection of chapter 11 or 7 of
title 11, United States Code, of all or substantially
all of its steelmaking assets to 1 or more persons
other than related persons in an arms'-length
transaction or series of related transactions which do
not constitute a qualified acquisition.
(2) Companies in imminent danger of closure.--A qualified
closing of a qualified steel company operating under the
protection of chapter 11 or 7 of title 11, United States Code,
shall be treated as having occurred if the company--
(A) meets the acquisition effort requirements of
paragraph (3);
(B) establishes to the satisfaction of the
Secretary that--
(i) it is in imminent danger of becoming a
closed company; or
(ii) in the case of a company operating
under protection of chapter 11 of title 11,
United States Code, it is unable to reorganize
without the relief provided under this Act; and
(C) elects, in such manner as the Secretary
prescribes, at any time after the date of the enactment
of this Act and before the date which is 2 years after
the date of the enactment of this Act, to avail itself
of the relief provided under this Act.
(3) Acquisition effort requirements.--
(A) In general.--The requirements of this paragraph
are met by a qualified steel company if--
(i) the company files with the Secretary
within 10 days of the date of the enactment of
this Act--
(I) a notice of intent to be
acquired; and
(II) a description of the actions
the company will undertake to have its
steelmaking assets acquired in a
qualified acquisition; and
(ii) the company at all times after the
filing under clause (i) and the date which is 2
years after the date of the enactment of this
Act (or, if earlier, the date on which the
requirement of paragraph (2)(B) is satisfied)
makes a continuing, good faith effort to have
its steelmaking assets acquired in a qualified
acquisition.
(B) Good faith effort.--A continuing, good faith
effort under subparagraph (A)(ii) shall include--
(i) the active marketing of a company's
steelmaking assets through the retention of an
investment banker, the preparation and
distribution of offering materials to
prospective purchasers, allowing due diligence
and investigatory activities by prospective
purchasers, the active and good faith
consideration of all expressions of interest by
prospective purchasers, and any other
affirmative action designed to result in a
qualified acquisition of a company's
steelmaking assets; and
(ii) a demonstration to the Secretary by
the company that no bona fide and fair offer
which would have resulted in a qualified
acquisition of the company's steelmaking assets
has been unreasonably refused.
(d) Qualified Election.--For purposes of this Act--
(1) In general.--The term ``qualified election'' means an
election by a qualified steel company operating under the
protection of chapter 11 or 7 of title 11, United States Code, meeting
the acquisition effort requirements of subsection (c)(3) to transfer
its obligations for steel retiree benefits to the retiree benefit
program. Such an election shall be made not earlier than the date which
is 2 years after the date of the enactment of this Act, and in such
manner as the Secretary may prescribe.
(2) Industry-wide election.--Notwithstanding paragraph (1),
a qualified election shall be treated as having occurred with
respect to a qualified steel company (whether or not operating
under the protection of chapter 11 or 7 of title 11, United
States Code) if--
(A) the Secretary determines that at least 200,000
eligible retirees and beneficiaries have been certified
under section 113 for participation in the retiree
benefits program; and
(B) the qualified steel company and each labor
organization representing at least 10 percent of the
union-represented employees engaged in the steelmaking
operations of such qualified steel company join in a
request, on or after the date of the determination
under subparagraph (A), for an election to be provided
the relief under this Act.
(e) Qualified Bankruptcy Transfer.--For purposes of this Act, the
term ``qualified bankruptcy transfer'' means any transaction or series
of transactions--
(1) under which the qualified steel company, operating
under the protection of chapter 11 or 7 of title 11, United
States Code, transfers by any means (including but not limited
to a plan of reorganization) its control over at least 50
percent of the production capacity of its steelmaking assets to
1 or more persons which are not related persons of such
company;
(2) which are not part of a qualified acquisition or
qualified closing of a qualified steel company; and
(3) which occur on and after January 1, 2000, and before
January 1, 2004.
(f) Certification.--
(1) In general.--The Secretary shall certify a qualifying
event with respect to a qualified steel company if the
Secretary determines that the requirements of this Act are met
with respect to such event and that the asset transfer and
contribution requirements of section 111 will be met.
(2) Time for decision.--The Secretary shall make any
determination under this subsection as soon as possible after a
request is filed (and in the case of a request for
certification as a qualified acquisition filed at least 60 days
before the proposed date of the acquisition, before such
proposed date).
(3) Eligibility to file request.--A request for
certification under this subsection may be made by the
qualified steel company or any labor organization acting on
behalf of retirees of such company.
SEC. 113. ELIGIBILITY AND CERTIFICATION.
(a) Retirees.--
(1) In general.--Any individual who is a retiree of a
qualified steel company with respect to which the Secretary has
certified under section 112 that a qualifying event has
occurred shall be treated as an eligible retiree for purposes
of this Act if--
(A) the individual was receiving steel retiree
benefits under an employee benefit plan described in
section 2(a)(2)(A) as of the date of the qualifying
event; or
(B) the individual was eligible for such benefits
on such date but was not receiving such benefits on
such date because the plan had ceased, within the 2-
year period ending with such date, to provide such
benefits.
(2) Certain individuals included.--An individual shall be
treated as an eligible retiree under paragraph (1) if the
individual--
(A) was an employee of the qualified steel company
before a qualified acquisition;
(B) became an employee of the acquiring company as
a result of the acquisition; and
(C) voluntarily retires within 3 years of the
acquisition.
(b) Beneficiaries.--An individual shall be treated as an eligible
beneficiary for purposes of this Act if the individual is--
(1) the spouse, surviving spouse, or dependent of an
eligible retiree, or
(2) the surviving spouse of an employee of a qualified
steel company who died within 5 years prior to the date of the
qualifying event, if such employee, based on service credited
as of the date of the employee's death, would have been an
eligible retiree if the employee had survived until the date of
the qualifying event and retired on such date.
(c) Certification of Eligible Retirees and Beneficiaries.--
(1) In general.--The Board of Trustees of the Trust Fund
shall certify an individual as an eligible retiree or eligible
beneficiary if the individual meets the requirements of this
section.
(2) Eligibility to file request.--A request for
certification under this subsection may be filed by any
individual seeking to be certified under this subsection, the
qualified steel company, an acquiring company, a labor
organization acting on behalf of retirees of such company, or a
committee appointed under section 1114 of title 11, United
States Code.
(d) Records.--A qualified steel company, an acquiring company, and
any successor in interest shall on and after the date of the enactment
of this Act maintain and make available to the Secretary and the Board
of Trustees of the Trust Fund, all records, documents, and materials
(including computer programs) necessary to make the certifications
under this section.
Subtitle C--Program Benefits
SEC. 121. PROGRAM BENEFITS.
(a) General Rule.--Each eligible retiree and eligible beneficiary
who is certified for participation in the retiree benefits program
shall be entitled to receive health care benefits coverage described in
subsection (b).
(b) Health Care Benefits Coverage.--
(1) In general.--The Board of Trustees of the Trust Fund
shall establish health care benefits coverage under which--
(A) eligible retirees and eligible beneficiaries
who are not eligible for benefits under title XVIII of
the Social Security Act are provided benefits
(including deductibles and cost-sharing and beneficiary
protections, including appeals rights) for health care
items and services that are equal to or better than the
benefits offered under such title as of January 1,
2002, and
(B) all eligible retirees and eligible
beneficiaries are provided benefits for prescription
drugs that are substantially the same as the benefits
(including deductibles and cost-sharing and beneficiary
protections, including appeals rights) offered as of
January 1, 2002, under the Blue Cross/Blue Shield
Standard Plan provided under the Federal Employees
Health Benefit Program under chapter 89 of title 5,
United States Code, to Federal employees and
annuitants.
(2) Application of secondary payor provisions.--
(A) Medicare benefits.--In applying paragraph
(1)(A), the secondary payor provisions of section
1862(b) of the Social Security Act shall apply to the
benefits described in such paragraph in the same manner
as they apply with respect to individuals who are 65
years of age or older and who are entitled to benefits
under part A and enrolled under part B of title XVIII
of such Act.
(B) FEHBP outpatient prescription drug benefits.--
In applying paragraph (1)(B), the applicable secondary
payor provisions of the Plan referred to in such
paragraph shall apply to the benefits described in such
paragraph in the same manner as they apply with respect
to Federal employees and annuitants under such Plan who
are eligible for benefits under the medicare program
under title XVIII of the Social Security Act.
(3) Contracting authority.--The Board of Trustees of the
Trust Fund shall have the authority to enter into such
contracts as are necessary to carry out the provisions of this
subsection, including contracts necessary to ensure adequate
geographic coverage and cost control.
(4) Premiums.--The Board of Trustees of the Trust Fund
shall establish each year a monthly premium for each eligible
retiree and beneficiary provided health care benefits coverage
under paragraph (1) which is equal to the sum of--
(A) the monthly premium required under part B of
title XVIII of the Social Security Act (without regard
to any late enrollment penalties) for months in the
year; and
(B) the product of--
(i) the monthly premium required of a full-
time Federal employee for the Standard Plan
coverage referred to in paragraph (1)(B); and
(ii) the ratio (as established by the Board
of Trustees of the Trust Fund, in consultation
with the Office of Personnel Management) of--
(I) the actuarial value of
outpatient prescription drug benefits
described in paragraph (1)(B); to
(II) the actuarial value, as of
January 1, 2002, of all benefits under
the Standard Plan referred to in such
paragraph.
(c) Periodic Reports to the Congress.--Not later than January 1,
2007, and not less frequently than every 5 years thereafter, the Board
of Trustees of the Trust Fund shall report to each House of the
Congress concerning any recommendations of the Board of Trustees for
changes in--
(1) the benefits provided under the health care benefits
coverage established under this section; and
(2) the premiums charged for such coverage.
TITLE II--STEEL INDUSTRY LEGACY RELIEF TRUST FUND
SEC. 201. STEEL INDUSTRY LEGACY RELIEF TRUST FUND.
(a) Creation of Trust Fund.--There is established in the Treasury
of the United States a trust fund to be known as the Steel Industry
Legacy Relief Trust Fund, consisting of such amounts as may be
appropriated to the Trust Fund as provided in this section.
(b) Transfers to Trust Fund.--
(1) In general.--There are appropriated to the Trust Fund
amounts equivalent to--
(A) tariffs on steel mill products received in the
Treasury under title II of the Trade Act of 1974;
(B) amounts received in the Treasury from asset
transfers and contributions under section 111;
(C) amounts credited to the Trust Fund under
subsection (e); and
(D) the premiums paid by retirees under the
program.
(2) Authorization of appropriations.--There is authorized
to be appropriated to the Trust Fund each fiscal year an amount
equal to the excess (if any) of--
(A) expenditures from the Trust Fund for the fiscal
year; over
(B) the assets of the Trust Fund for the fiscal
year without regard to this paragraph.
(c) Expenditures.--Amounts in the Trust Fund shall be available
only for purposes of making expenditures--
(1) to meet the obligations of the United States with
respect to liability for steel retiree benefits transferred to
the United States under this Act; and
(2) incurred by the Secretary and the Board of Trustees in
the administration of this Act.
(d) Board of Trustees.--
(1) In general.--The Trust Fund and the retiree benefits
program shall be administered by a Board of Trustees,
consisting of--
(A) 2 individuals designated by agreement of the 5
qualified steel companies which, as of the date of the
enactment of this Act--
(i) are conducting activities described in
subparagraph (A) or (B) of section 201(b)(1);
and
(ii) have the largest number of retirees;
(B) 2 individuals designated by the United
Steelworkers of America in consultation with the
Independent Steelworkers Union; and
(C) 3 individuals designated by individuals
designated under subparagraphs (A) and (B).
(2) Duties.--Except for those duties and responsibilities
designated to the Secretary, the Board of Trustees shall have
the responsibility to administer the Trust Fund and the retiree
benefits program, including--
(A) enrolling eligible retirees and beneficiaries
under the program;
(B) procuring the medical services to be provided
under the program;
(C) entering into contracts, leases, or other
arrangements necessary for the implementation of the
program;
(D) implementing cost-containment measures under
the program;
(E) collecting revenues and enforcing claims and
rights of the program and the Trust Fund;
(F) making disbursements as necessary under the
program; and
(G) acquiring and maintaining such records as may
be necessary for the administration and implementation
of the program.
(3) Report.--The Board of Trustees report to Congress 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 next 2
fiscal years. Such report shall be printed as a House document
of the session of Congress to which the report is made.
(e) Transfer of Amounts; Management of Funds.--
(1) Transfer of amounts.--The amounts appropriated to the
Trust Fund shall be transferred at least monthly from the
general fund of the Treasury to such Trust Fund on the basis of
estimates made by the Secretary of the Treasury of the amounts
referred to in such section. Proper adjustments shall be made
in the amounts subsequently transferred to the extent prior
estimates were in excess of or less than the amounts required
to be transferred.
(2) Management of trust fund.--
(A) Report.--It shall be the duty of the Secretary
of the Treasury to hold the Trust Fund and (after
consultation with the Board of Trustees of the Trust
Fund) to report to the Congress 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
next 5 fiscal years. Such report shall be printed as a
House document of the session of the Congress to which
the report is made.
(B) Investment.--
(i) In general.--It shall be the duty of
the Secretary of the Treasury to invest such
portion of the Trust Fund as is not, in his or
her judgment, required to meet current
withdrawals. Such investments may be made only
in interest-bearing obligations of the United
States. For such purpose, such obligations may
be acquired--
(I) on original issue at the issue
price; or
(II) by purchase of outstanding
obligations at the market price.
(ii) Sale of obligations.--Any obligation
acquired by the Trust Fund may be sold by the
Secretary of the Treasury at the market price.
(iii) Interest on certain proceeds.--The
interest on, and the proceeds from the sale or
redemption of, any obligations held in the
Trust Fund shall be credited to and form a part
of the Trust Fund.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Education and the Workforce, 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 Energy and Commerce, and in addition to the Committee on Education and the Workforce, 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 Energy and Commerce, and in addition to the Committee on Education and the Workforce, 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 Commerce, Trade and Consumer Protection.
Subcommittee Hearings Held.
Referred to the Subcommittee on Employer-Employee Relations.
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