[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 910 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 910
To provide certain safeguards with respect to the domestic steel
industry.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 17, 2001
Mr. Rockefeller (for himself, Mr. Dayton, and Mr. Wellstone) introduced
the following bill; which was read twice and referred to the Committee
on Finance
_______________________________________________________________________
A BILL
To provide certain safeguards with respect to the domestic 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.
This Act may be cited as the ``Save the American Steel Industry Act
of 2001''.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--LEGACY COST SHARING
Sec. 101. Steelworker Retiree Health Care Board.
Sec. 102. Steelworker Retiree Health Care Trust Fund.
Sec. 103. Health Care Benefit Costs Assistance Program.
Sec. 104. Excise tax on steel.
TITLE II--INCENTIVES FOR CONSOLIDATION
Sec. 201. Grant program for merged companies.
TITLE I--LEGACY COST SHARING
SEC. 101. STEELWORKER RETIREE HEALTH CARE BOARD.
(a) Establishment.--There is established in the Department of Labor
a Steelworker Retiree Health Care Board.
(b) Composition.--The Board shall be composed of 5 members
appointed by the Secretary of Labor, of whom--
(1) one shall be designated by the Secretary as Chairman;
(2) one shall be appointed after taking into consideration
the recommendations made by the Speaker of the House of
Representatives and the majority leader of the Senate;
(3) one shall be appointed after taking into consideration
the recommendations made by the minority leader of the House of
Representatives and the minority leader of the Senate;
(4) one shall represent the interests of steel and iron ore
workers; and
(5) one shall represent the interests of the steel and iron
ore industry.
(c) Membership Requirements.--Members of the Board shall have
substantial experience, training, and expertise in matters relating to
retiree health benefits.
(d) Length of Appointments.--
(1) Terms.--A member of the Board shall be appointed for a
term of 2 years.
(2) Vacancies.--
(A) In general.--A vacancy on the Board shall be
filled in the manner in which the original appointment
was made and shall be subject to any conditions that
applied with respect to the original appointment.
(B) Completion of term.--An individual chosen to
fill a vacancy shall be appointed for the unexpired
term of the member replaced.
(3) Expiration.--The term of any member shall not expire
before the date on which the member's successor takes office.
(e) Duties.--The Board shall--
(1) administer the Health Care Benefit Costs Assistance
Program established under section 103;
(2) establish policies for the investment and management of
the Steelworker Retiree Health Care Trust Fund established
under section 102 that shall provide for prudent investments
and low administrative costs; and
(3) review and approve the budget of the Board.
(f) Administrative Provisions.--
(1) In general.--The Board may--
(A) adopt, alter, and use a seal; and
(B) take such other actions as may be necessary to
carry out the functions of the Board.
(2) Meetings.--The Board shall meet--
(A) at least semiannually; and
(B) at additional times at the call of the
Chairman.
(3) Exercise of powers.--
(A) In general.--The Board shall perform the
functions and exercise the powers of the Board on a
majority vote of a quorum of the Board. Three members
of the Board shall constitute a quorum for the
transaction of business.
(B) Vacancies.--A vacancy on the Board shall not
impair the authority of a quorum of the Board to
perform the functions and exercise the powers of the
Board.
(g) Compensation.--
(1) In general.--Each member of the Board who is not an
officer or employee of the Federal Government shall be
compensated at the daily rate of basic pay for level V of the
Executive Schedule for each day during which such member is
engaged in performing a function of the Board.
(2) Expenses.--A member of the Board shall be paid travel,
per diem, and other necessary expenses under subchapter I of
chapter 57 of title 5, United States Code, while traveling away
from such member's home or regular place of business in the
performance of the duties of the Board.
(3) Source of funds.--Payments authorized under this
subsection shall be paid from the Steelworker Retiree Health
Care Trust Fund.
SEC. 102. STEELWORKER RETIREE HEALTH CARE 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 ``Steelworker
Retiree Health Care Trust Fund'', consisting of such amounts as may be
appropriated or credited to the Steelworker Retiree Health Care Trust
Fund as provided in this section.
(b) Transfer of Designated Amounts to Trust Fund.--There is hereby
appropriated to the Steelworker Retiree Health Care Trust Fund amounts
equivalent to the taxes received in the Treasury under section 4191 of
the Internal Revenue Code of 1986 (relating to excise tax on steel).
(c) Expenditures From Trust Fund.--
(1) Health care benefit cost payments.--The Secretary of
the Treasury shall make payments from the Trust Fund in
accordance with section 103.
(2) Administrative expenses.--Amounts in the Trust Fund
shall be available to pay the administrative expenses of the
Secretary of the Treasury directly attributable to carrying out
this section and section 103 with respect to such Trust Fund.
SEC. 103. HEALTH CARE BENEFIT COSTS ASSISTANCE PROGRAM.
(a) Establishment of Program.--The Steelworker Retiree Health Care
Board shall establish by regulation a Health Care Benefit Costs
Assistance Program under which the Board shall provide for payments
under this section from the balance in the Steelworker Retiree Health
Care Trust Fund to designated steelworker group health plans to assist
in the funding of qualified retiree health benefits under such plans.
(b) Definitions.--For purposes of this section--
(1) Designated steelworker group health plan.--
(A) In general.--The term ``designated steelworker
group health plan'' means a group health plan--
(i) under which participants and
beneficiaries include retired steelworker
participants or their beneficiaries, and
(ii) that is in effect on the date of the
enactment of this Act or meets the requirements
of subparagraph (B).
(B) Plans maintained in connection with subsequent
acquisitions.--A group health plan meets the
requirements of this subparagraph if--
(i) such plan is in effect as of the date
of an affirmative determination under section
201(b)(1) with respect to an acquisition, and
(ii) a person who was engaged in, or
resulted from, such acquisition is obligated,
under the terms of the plan as in effect
immediately after such determination, to make
contributions to the plan.
(C) Successor plans.--Any group health plan
described in clause (i) of subparagraph (A) that is a
successor to a terminated designated steelworker group
health plan (as defined in subparagraph (A)) shall be
treated as such designated steelworker group health
plan to the extent that it provides benefits to
individuals who were eligible steelworker participants
or their beneficiaries under the terminated plan, if--
(i) such benefits are at least equivalent
to the benefits provided by the terminated plan
immediately before its termination, or
(ii) in any case in which the benefits
under the plan do not meet the requirements of
clause (i), any deviation from such
requirements was adopted by agreement with an
authorized representative of the individuals
who were eligible steelworker participants or
their beneficiaries under the terminated plan.
(2) Qualified retiree health benefit.--The term ``qualified
retiree health benefit'' means medical care which is provided
under a designated steelworker group health plan--
(A) to an eligible steelworker participant who
retired under such plan prior to the date of the
enactment of this Act (or to an eligible beneficiary of
such a participant), or
(B) in the case of a plan described in paragraph
(1)(B), to an eligible steelworker participant who
retires under such plan during the 180-day period
beginning with the applicable effective date (or to an
eligible beneficiary of such a participant).
(3) Steelworker participant.--
(A) In general.--The term ``steelworker
participant'' means a participant who was, while
employed as a participant in the plan, actively engaged
in the production of any steel product specified in
subparagraph (B).
(B) Applicability.--The categories of steel
products specified in this subparagraph are as follows:
semifinished steel, stainless steel, plates, sheets and
strips, rods, wire and wire products, rail type
products, bars, structural shapes and units, pipes and
tubes, iron ore, pig iron, and coke and coke products.
(4) Applicable effective date.--The term ``applicable
effective date'' means the date of the enactment of this Act,
except that, in the case of a plan meeting the requirements of
paragraph (1)(B), such term means the date of the affirmative
decision of the Secretary of Commerce referred to in paragraph
(1)(B).
(5) Eligibility.--A steelworker participant under a
designated steelworker group health plan (or such participant's
beneficiary) for any plan year is ``eligible'' for such plan
year if such participant or beneficiary was a participant or
beneficiary under such plan as of the applicable effective date
and has remained a participant or beneficiary under such plan
without an intervening break in coverage. For purposes of this
paragraph, a suspension of benefits by reason of a case under
chapter 11 of title 11, United States Code, or under any
similar Federal law or law of a State or political subdivision
of a State shall not be treated as a break in coverage.
(6) Other definitions.--Terms used in this section which
are defined in sections 3 and 733(a) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1002 and 1191b(a)) shall
have the meanings provided such terms in such sections.
(c) Applications.--During the 180-day period following the
applicable effective date, a plan sponsor of a designated steelworker
group health plan providing qualified retiree health care benefits may
apply to the Board for contributions to the plan under the Health Care
Benefit Costs Assistance Program as reimbursement for benefit costs as
provided under this section. Such applications shall be accepted by the
Board only if they are filed in such form and manner as shall be
prescribed in regulations of the Board.
(d) Payment of Contributions.--
(1) In general.--Upon receipt of an application with
respect to a designated steelworker group health plan filed
with the Board in accordance with subsection (c), the Board
shall pay contributions to the plan from the Trust Fund for
each calendar year beginning after the 180-day period described
in subsection (c). Such contributions shall be allocated to
plan years which do not coincide with calendar years as
provided in regulations of the Board.
(2) Amount of contributions.--
(A) In general.--Subject to subparagraph (F), total
contributions paid to a plan under this section for any
calendar year shall be equal to 75 percent of the
qualified expenditures of the plan made during such
calendar year.
(B) Qualified expenditures.--For purposes of
subparagraph (A), the term ``qualified expenditures''
of a plan for any calendar year means the costs of
items and services constituting qualified retiree
health benefits paid by the plan during such calendar
year, employing the cost levels for such items and
services that prevailed as of the applicable effective
date.
(C) Accounting for qualified expenditures.--The
Board shall provide by regulation for the payment of
contributions under this section for any calendar year
in periodic installments, determined on the basis of
information currently received by the Board with
respect to the qualified expenditures of the plan and
such estimates as the Board considers appropriate.
Adjustments shall be made in the amount of such
installments to the extent necessary to compensate for
payments of prior installments that were less than or
greater than the correct amount.
(D) Effect of subsequent plan amendments
disregarded.--
(i) In general.--Subject to clause (ii),
for purposes of determining qualified
expenditures under this paragraph, any
amendment to the plan taking effect after the
applicable effective date shall be disregarded
to the extent that it increases benefit costs
or adds new benefits.
(ii) Reductions and restorations.--
Amendments to the plan taking effect after the
applicable effective date shall be taken into
account to the extent that such amendments--
(I) reduce benefit costs or
eliminate existing benefits, or
(II) increase benefit costs or add
new benefits with the effect of
restoring levels of benefit costs to
levels in effect prior to any reduction
described in subclause (I), or
restoring benefits that were eliminated
as described in subclause (I).
(E) Increases in consumer price index taken into
account.--For purposes of determining qualified
expenditures under this paragraph, increases since the
applicable effective date in the costs of items and
services constituting qualified retiree health benefits
under a plan shall be allowed under this section to the
extent that such increases do not exceed the annual
rate of increase in the consumer price index for all
urban consumers (U. S. city average) issued by the
Bureau of Labor Statistics.
(F) Adjustment to contributions in the event of
trust fund insufficiency.--If the Board determines
during any calendar year that, as of any date during
the following calendar year, the balance in the Trust
Fund will be insufficient to meet all contributions
otherwise required under this section to be made from
the Trust Fund for such following calendar year--
(i) the Board shall immediately publish
such determination in the Federal Register, and
(ii) the Board shall distribute the balance
in the Trust Fund available for contributions
payable during such following calendar year
among all plans required to receive
contributions for such following calendar year
in direct proportion to the number of eligible
participants and eligible beneficiaries under
the plans as of the beginning of such following calendar year.
Such distribution to the plans shall be deemed payment
in full of contributions required to be made to such
plans under this section for such calendar year.
Determinations under this section with respect to any
calendar year shall be made irrespective of any
distribution from the Trust Fund made pursuant to this
subparagraph for the prior calendar year.
(e) Reduction of Required Contributions.--If the Board determines
during any calendar year that, as of any date during the following
calendar year, the balance in the Trust Fund will be in excess of the
amount necessary to meet all contributions required under this section
to be made from the Trust Fund for such following calendar year--
(1) the Board shall immediately publish such determination
in the Federal Register, and
(2) the Board shall certify to the Secretary of the
Treasury the amount of such excess.
SEC. 104. EXCISE TAX ON STEEL.
(a) In General.--Chapter 32 of the Internal Revenue Code of 1986
(relating to manufacturers excise taxes) is amended by inserting after
subchapter D the following new subchapter:
``Subchapter E--Steel
``Sec. 4191. Imposition of Tax.
``SEC. 4191. IMPOSITION OF TAX.
``(a) Imposition of Tax.--There is hereby imposed a tax on steel
sold by the manufacturer, producer, or importer thereof.
``(b) Determination of Tax.--
``(1) In general.--The amount of tax imposed by subsection
(a) shall be the applicable percentage of the price at which
the steel is sold.
``(2) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage for any taxable year shall be 2
percent reduced (but not below zero) by the excess contribution
percentage.
``(3) Excess contribution percentage.--For purposes of
paragraph (2), the excess contribution percentage for a
calendar year is the number of percentage points which the
Secretary determines will, as of the last day of such calendar
year, reduce to zero the excess (if any) of the amount
necessary to meet all contributions required under section 103
of the Save the American Steel Industry Act of 2001 to be made
from the Steelworker Retiree Health Care Trust Fund for such
calendar year. The Secretary shall make such determination on
the basis of the certification made by the Steelworker Retiree
Health Care Board under section 103(e) of such Act.
``(c) Liability for Tax.--The tax imposed by subsection (a) shall
be paid by the manufacturer, producer, or importer.
``(d) Definitions and Special Rules.--For purposes of this
subchapter--
``(1) Steel.--The term `steel' means steel in any of the
following categories of steel products: semifinished steel,
stainless steel, plates, sheets and strips, rods, wire and wire
products, rail type products, bars, structural shapes and
units, pipes and tubes, iron ore, pig iron, and coke and coke
products.
``(2) Importer.--The term `importer' means the person
entering the steel for consumption or use.
``(3) United states.--The term `United States' includes any
foreign trade zone of the United States.''.
(b) Exemptions, Etc., Not To Apply.--
(1) Subsection (a) of section 4218 of such Code is amended
by inserting ``and steel taxable under section 4191,'' after
``4121,''.
(2) Subsection (a) of section 4221 of such Code is amended
by inserting ``4191,'' after ``4121,''.
(3) The third sentence of section 6416(b)(2) of such Code
is amended by striking ``or 4121'' and inserting ``, 4121, and
4191''.
(c) Clerical Amendment.--The table of subchapters for chapter 32 of
such Code is amended by inserting after the item relating to subchapter
D the following new item:
``Subchapter E. Steel.''.
(d) Effective Date.--The amendments made by this section shall
apply to sales occurring after 180 days after the date of the enactment
of this Act.
TITLE II--INCENTIVES FOR CONSOLIDATION
SEC. 201. GRANT PROGRAM FOR MERGED COMPANIES.
(a) Eligible Persons.--Any person who acquires another person that
produces any of the steel products specified in section 103(b)(3)(B)
may, during the 1-year period beginning on the effective date of the
acquisition, apply to the Secretary of Commerce for a grant under this
section to defray the costs necessary--
(1) to bring the entity resulting from the acquisition into
compliance with requirements imposed by laws to protect the
environment; and
(2) to maintain such compliance.
(b) Determinations by the Secretary of Commerce.--
(1) Employment and production retention.--Upon receipt of
an application under subsection (a), the Secretary of Commerce
shall determine whether or not the acquisition set out in the
application will promote the retention of jobs and production
capacity in the sector producing steel products specified in
section 103(b)(3)(B). The Secretary may make an affirmative
determination under the preceding sentence only if the
Secretary determines that after the acquisition--
(A) the maximum number of workers of the acquiring
person and the person acquired that are engaged in the
production of steel products specified in section
103(b)(3)(B) on the day before the effective date of
the acquisition will be retained, consistent with the
long-term viability of the combined entity, except that
such maximum number--
(i) must be at least 80 percent of the
total number of such workers; and
(ii) must include at least 50 percent of
the number of such workers of the acquired
person; and
(B) at least 80 percent of the facilities of the
acquiring person and the person acquired that are used
for the production of those steel products on the day
before the acquisition is completed will be retained.
(2) Environmental costs.--If the Secretary of Commerce
makes an affirmative determination under paragraph (1), the
Secretary shall provide a grant to the applicant in an amount
determined by the Secretary to cover the costs incurred or to
be incurred by the applicant--
(A) in complying with the requirements imposed by
laws to protect the environment; and
(B) in maintaining such compliance.
(c) Authorization; Amount of Grants.--
(1) Authorization.--There is authorized to be appropriated
to carry out this section $500,000,000.
(2) Amount of grants.--Not more than $200,000,000 may be
provided to any applicant under this section.
(d) Penalties.--
(1) Failure to achieve retention levels in first 5 years.--
In any case in which a person receives a grant under this
section and, at any time during the 5-year period after the
grant is awarded, the number of workers, or the production
capacity, described in paragraph (1) of subsection (b) with
respect to that applicant falls below the 80 percent level
described in subparagraph (A)(i) or (B) of that paragraph, the
applicant shall forfeit to the Secretary the dollar amount of
the grant, plus 20 percent of that amount.
(2) Failure to achieve retention levels after first 5
years.--In any case in which a person receives a grant under
this section and the number of workers, or the production
capacity, described in paragraph (1) of subsection (b) with
respect to that applicant falls below the 80 percent level
described in subparagraph (A)(i) or (B) of that paragraph--
(A) during the 6th year after the grant is awarded,
the applicant shall forfeit to the Secretary 50 percent
of the dollar amount of the grant, plus 20 percent of
that forfeited amount;
(B) during the 7th year after the grant is awarded,
the applicant shall forfeit to the Secretary 40 percent
of the dollar amount of the grant, plus 20 percent of
that forfeited amount;
(C) during the 8th year after the grant is awarded,
the applicant shall forfeit to the Secretary 30 percent
of the dollar amount of the grant, plus 20 percent of
that forfeited amount;
(D) during the 9th year after the grant is awarded,
the applicant shall forfeit to the Secretary 20 percent
of the dollar amount of the grant, plus 20 percent of
that forfeited amount; and
(E) during the 10th year after the grant is
awarded, the applicant shall forfeit to the Secretary
10 percent of the dollar amount of the grant, plus 20
percent of that forfeited amount.
(3) Court action.--In the event of the failure of a person
to forfeit any amount under paragraph (1) or (2), the Secretary
of Commerce may bring an action in the appropriate district
court against that person to collect that amount.
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