[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2189 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2189

 To amend the Trade Act of 1974 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 SENATE OF THE UNITED STATES

                             April 17, 2002

Mr. Rockefeller (for himself, Mr. Specter, Mr. Daschle, Mr. Wellstone, 
 Mr. Durbin, Ms. Mikulski, Mr. Sarbanes, Mr. Dayton, and Mrs. Clinton) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Trade Act of 1974 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 
Consolidation and Retiree Benefits Protection 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, 32 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 and life insurance 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 and life insurance obligations.
            (2) Purpose.--It is the purpose of this Act to ensure 
        that--
                    (A) retired steelworkers receive medical and life 
                insurance 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. ESTABLISHMENT OF STEEL INDUSTRY RETIREE BENEFITS PROTECTION 
              PROGRAM.

    The Trade Act of 1974 is amended by adding at the end the following 
new title:

     ``TITLE IX--PROTECTION FOR STEEL INDUSTRY RETIREMENT BENEFITS

                              ``Subtitle A. Definitions.
                              ``Subtitle B. Steel Industry Retiree 
                                        Benefits Protection Program.
                              ``Subtitle C. Steel Industry Legacy 
                                        Relief Trust Fund.

                       ``Subtitle A--Definitions

                              ``Sec. 901. Definitions.

``SEC. 901. DEFINITIONS.

    ``(a) Terms Relating to Benefits Program.--For purposes of this 
title--
            ``(1) Retiree benefits program.--The term `retiree benefits 
        program' means the Steel Industry Retiree Benefits Protection 
        Program established under this title to provide medical and 
        death benefits to eligible retirees and beneficiaries.
            ``(2) Steel retiree benefits.--
                    ``(A) In general.--The term `steel retiree 
                benefits' means medical, surgical, or hospital 
                benefits, and death 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 
title--
            ``(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 title--
            ``(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.

    ``Subtitle B--Steel Industry Retiree Benefits Protection Program

                              ``I. Establishment.
                              ``II. Relief and assumption of liability, 
                                        eligibility, and certification.
                              ``III. Program benefits.

                        ``PART I--ESTABLISHMENT

                              ``Sec. 902. Establishment.

``SEC. 902. 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 title for 
the purpose of providing medical and death benefits to eligible 
retirees and eligible beneficiaries certified as participants in the 
program under part II.

    ``PART II--RELIEF AND ASSUMPTION OF LIABILITY, ELIGIBILITY, AND 
                             CERTIFICATION

                              ``Sec. 911. Relief and assumption of 
                                        liability.
                              ``Sec. 912. Qualifying events.
                              ``Sec. 913. Eligibility and certification 
                                        of eligibility.

``SEC. 911. RELIEF AND ASSUMPTION OF LIABILITY.

    ``(a) In General.--If--
            ``(1) the Secretary certifies under section 912 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 913 (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 part III.
    ``(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 912 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 912 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 $5 per ton of products 
                        described in section 901(b)(1)(A) 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) FASB liability in case of certain qualifying 
        events.--
                    ``(A) In general.--If there is a qualifying event 
                (other than a qualified acquisition) with respect to a 
                qualified steel company, then, subject to the 
                provisions of subparagraphs (C) and (D), the qualified 
                steel company shall be liable for payment to the Trust 
                Fund of the amount determined under subparagraph (B). 
                If a qualified acquisition occurs after another 
                qualifying event, such other qualifying event shall be 
                disregarded for purposes of this paragraph.
                    ``(B) Amount of liability.--The amount determined 
                under this subparagraph shall be equal to the excess 
                (if any) of--
                            ``(i) the amount determined under the 
                        Financial Accounting Standards Board Rule 106 
                        as being equal to the present value of the 
                        steel retiree benefits of eligible retirees and 
                        beneficiaries of the qualified steel company 
                        the liability for which (determined without 
                        regard to any modification pursuant to section 
                        1114 of title 11, United States Code) is 
                        relieved under subsection (a), over
                            ``(ii) the sum of--
                                    ``(I) the value of the assets 
                                transferred under subsection (b) with 
                                respect to the retirees and 
                                beneficiaries, and
                                    ``(II) the present value of any 
                                payments (other than payments 
                                determined under this subparagraph) to 
                                be made under this subsection with 
                                respect to steelmaking assets of the 
                                qualified steel company.
                    ``(C) Discharges in bankruptcy.--The amount of any 
                liability under subparagraph (B) shall be reduced by 
                the portion of such liability which, in accordance with 
                the provisions of title 11, United States Code, is 
                discharged in any bankruptcy proceeding.
                    ``(D) No liability if industry-wide election 
                made.--If a qualifying event occurs by reason of a 
                qualified election under section 912(d)(2)(B), then--
                            ``(i) any liability that arose under this 
                        paragraph for any qualifying event occurring 
                        before such election is extinguished (and any 
                        payment of such liability shall be refunded 
                        from the Trust Fund with interest), and
                            ``(ii) no liability shall arise under this 
                        paragraph with respect to the qualifying event 
                        occurring by reason of such election or any 
                        subsequent qualifying event.
            ``(3) 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.
            ``(4) 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. 912. QUALIFYING EVENTS.

    ``(a) In General.--For purposes of this title, the term `qualifying 
event' means any--
            ``(1) qualified acquisition,
            ``(2) qualified closing,
            ``(3) qualified election, and
            ``(4) qualified bankruptcy transfer.
    ``(b) Qualified Acquisition.--For purposes of this title, the term 
`qualified acquisition' means any arms'-length transaction or series of 
related transactions--
            ``(1) under which a person (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 the qualified steel company as of January 1, 2000, and
            ``(2) which occur on and after January 1, 2000, and before 
        the date which is 2 years after the date of the enactment of 
        this title.
Such term shall not include any acquisition by a related person.
    ``(c) Qualified Closing.--For purposes of this title--
            ``(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 901(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 title, 
                        and
                    ``(C) elects, in such manner as the Secretary 
                prescribes, at any time after the date of the enactment 
                of this title and before the date which is 2 years 
                after the date of the enactment of this title, to avail 
                itself of the relief provided under this title.
            ``(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 title--
                                    ``(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 
                        title (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 title--
            ``(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 title, 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 913 for participation in the 
                retiree benefits program, and
                    ``(B) the qualified steel company elects to avail 
                itself of the relief provided under this title on or 
                after the date of the determination under subparagraph 
                (A).
    ``(e) Qualified Bankruptcy Transfer.--For purposes of this title, 
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 30 
        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 title are 
        met with respect to such event and that the asset transfer and 
        contribution requirements of section 911 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. 913. 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 912 that a qualifying event has 
        occurred shall be treated as an eligible retiree for purposes 
        of this title if--
                    ``(A) the individual was receiving steel retiree 
                benefits under an employee benefit plan described in 
                section 901(a)(2)(A) as of the date of the qualifying 
                event, or
                    ``(B) the individual was eligible to receive such 
                benefits on such date but was not receiving such 
                benefits because the plan ceased 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 title if the individual is the spouse, 
surviving spouse, or dependent of an eligible retiree (or an individual 
who would have been an eligible retiree but for the individual's death 
before the date of the qualifying event).
    ``(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 title 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.

                      ``PART III--PROGRAM BENEFITS

                              ``Sec. 921. Program benefits.

``SEC. 921. PROGRAM BENEFITS.

    ``(a) General Rule.--Each eligible retiree and eligible beneficiary 
who is certified for participation in the retiree benefits program 
shall be entitled--
            ``(1) to receive health care benefits coverage described in 
        subsection (b), and
            ``(2) in the case of an eligible retiree, payment of $5,000 
        death benefits coverage to the beneficiary of the retiree upon 
        the retiree's death.
    ``(b) Health Care Benefits Coverage.--
            ``(1) In general.--The Board of Trustees of the Trust Fund 
        shall establish health care benefits coverage under which 
        eligible retirees and beneficiaries are provided benefits for 
        health care items and services that are substantially the same 
        as the benefits 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. In 
        providing the benefits under such program, the secondary payer 
        provisions and the provisions relating to benefits provided 
        when an individual is eligible for benefits under the medicare 
        program under title XVIII of the Social Security Act that are 
        applicable under such Plan shall apply in the same manner as 
        such provisions apply to Federal employees and annuitants under 
        such Plan.
            ``(2) 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. The Board of Trustees may 
        use the authority under this subsection to establish preferred 
        provider organizations or other alternative delivery systems.
            ``(3) Premiums, deductibles, and cost sharing.--The Board 
        of Trustees of the Trust Fund shall establish premiums, 
        deductibles, and cost sharing for eligible retirees and 
        beneficiaries provided health care benefits coverage under 
        paragraph (1) which are substantially the same as those 
        required under the Blue Cross/Blue Shield Standard Plan 
        described in paragraph (1).

         ``Subtitle C--Steel Industry Legacy Relief Trust Fund

``SEC. 931. 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 this Act,
                    ``(B) amounts received in the Treasury from asset 
                transfers and contributions under section 911,
                    ``(C) amounts credited to the Trust Fund under 
                section 9602(b) of the Internal Revenue Code of 1986, 
                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 title, and
            ``(2) incurred by the Secretary and the Board of Trustees 
        in the administration of this title.
    ``(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 title--
                            ``(i) are conducting activities described 
                        in subparagraph (A) or (B) of section 
                        901(b)(1), and
                            ``(ii) have the largest number of retirees, 
                        and
                    ``(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 Investment of Assets.--Sections 9601 and 9602(b) of 
the Internal Revenue Code of 1986 shall apply to the Trust Fund.''
                                 <all>