[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>