[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>