[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 957 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 957

   To provide certain safeguards with respect to the domestic steel 
                               industry.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 24, 2001

  Mr. Wellstone (for himself, Mr. Dayton, Mr. Byrd, and Ms. Stabenow) 
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 ``Steel Revitalization 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--IMPORT RELIEF

Sec. 101. Reduction in volume of steel imports.
Sec. 102. Steel import notification and monitoring program.
                     TITLE II--LEGACY COST SHARING

Sec. 201. Steel Retiree Health Care Board.
Sec. 202. Steelworker Retiree Health Care Trust Fund.
Sec. 203. Health Care Benefit Costs Assistance Program.
Sec. 204. Excise tax on steel.
                TITLE III--STEEL LOAN GUARANTEE PROGRAM

Sec. 301. Modification to steel loan guarantee program.
                 TITLE IV--INCENTIVES FOR CONSOLIDATION

Sec. 401. Grant program for merged companies.

                         TITLE I--IMPORT RELIEF

SEC. 101. REDUCTION IN VOLUME OF STEEL IMPORTS.

    (a) Reduction.--
            (1) In general.--Notwithstanding any other provision of 
        law, within 60 days after the date of enactment of this Act, 
        the President shall take the necessary steps, by imposing 
        quotas, tariff surcharges, negotiated enforceable voluntary 
        export restraint agreements, or other measures, on imports of 
        steel products to ensure that--
                    (A) the tonnage of iron ore, coke and coke 
                products, semifinished steel, and pig iron imported 
                into the United States during any month does not exceed 
                the average tonnage of each such product that was 
                imported monthly into the United States during the 36-
                month period preceding July 1997; and
                    (B) in the case of any other steel product to which 
                this section applies, the share of domestic consumption 
                of each such steel product in the United States that is 
                derived from imports during any month does not exceed 
                the average monthly share of domestic consumption of 
                that steel product in the United States that was 
                derived from imports during any month in the 36-month 
                period preceding July 1997.
            (2) Determination of future consumption.--Determinations of 
        the share of future domestic consumption for purposes of 
        subparagraph (B) shall be based on projections made from the 
        best available information.
    (b) Enforcement Authority.--Within 60 days after the date of 
enactment of this Act, the Secretary of the Treasury, through the 
United States Customs Service, and the Secretary of Commerce shall 
implement a program for administering and enforcing the restraints on 
imports under subsection (a). The Customs Service is authorized to 
refuse entry into the customs territory of the United States of any 
steel products that exceed the allowable levels of imports of such 
products.
    (c) Applicability.--This section shall apply to 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.
    (d) Waivers During Periods of Short Supply.--The President may 
waive the applicability of subsection (a), for periods of not more than 
3 months each, with respect to any product set forth in subsection (c) 
if--
            (1) the President determines that the product cannot be 
        supplied by the domestic industry in commercial quantities in a 
        timely manner;
            (2) the President has obtained advice regarding that 
        determination from the appropriate advisory committee 
        established under section 135 of the Trade Act of 1974 (19 
        U.S.C. 2155) and the United States International Trade 
        Commission;
            (3) the President has submitted to Congress a report that 
        sets forth the determination described in paragraph (1) and the 
        reasons therefor, and the advice obtained under paragraph (2); 
        and
            (4) a period of 30 calendar days has elapsed since the 
        report was submitted under paragraph (3).
    (e) Expiration.--This section shall expire at the end of the 5-year 
period beginning 60 days after the date of enactment of this Act.

SEC. 102. STEEL IMPORT NOTIFICATION AND MONITORING PROGRAM.

    (a) In General.--Not later than 30 days after the date of enactment 
of this Act, the Secretary of Commerce, in consultation with the 
Secretary of the Treasury, shall establish and implement a steel import 
notification and monitoring program. The program shall include a 
requirement that any person importing a product classified under 
chapter 72 or 73 of the Harmonized Tariff Schedule of the United States 
obtain an import notification certificate before such products are 
entered into the United States.
    (b) Steel Import Notification Certificates.--
            (1) In general.--In order to obtain a steel import 
        notification certificate, an importer shall submit to the 
        Secretary of Commerce an application containing--
                    (A) the importer's name and address;
                    (B) the name and address of the supplier of the 
                goods to be imported;
                    (C) the name and address of the producer of the 
                goods to be imported;
                    (D) the country of origin of the goods;
                    (E) the country from which the goods are to be 
                imported;
                    (F) the United States Customs port of entry where 
                the goods will be entered;
                    (G) the expected date of entry of the goods into 
                the United States;
                    (H) a description of the goods, including the 
                classification of such goods under the Harmonized 
                Tariff Schedule of the United States;
                    (I) the quantity (in kilograms and net tons) of the 
                goods to be imported;
                    (J) the cost insurance freight (CIF) and free 
                alongside ship (FAS) values of the goods to be entered;
                    (K) whether the goods are being entered for 
                consumption or for entry into a bonded warehouse or 
                foreign trade zone;
                    (L) a certification that the information furnished 
                in the certificate application is correct;
                    (M) the process used to produce the goods and the 
                estimated amount of toxic material emitted into the 
                air, earth, and water as a result of that process;
                    (N) wages and benefits paid to the workers 
                producing the goods; and
                    (O) any other information the Secretary of Commerce 
                determines to be necessary and appropriate.
            (2) Entry into customs territory.--In the case of a product 
        that is initially entered into a bonded warehouse or foreign 
        trade zone, a steel import notification certificate shall be 
        required before the product is entered into the customs 
        territory of the United States.
            (3) Issuance of steel import notification certificate.--The 
        Secretary of Commerce shall issue a steel import notification 
        certificate to any person who files an application that meets 
        the requirements of this section. Such certificate shall be 
        valid for a period of 30 days from the date of issuance.
    (c) Statistical Information.--
            (1) In general.--The Secretary of Commerce shall compile 
        and publish on a weekly basis information described in 
        paragraph (2).
            (2) Information described.--Information described in this 
        paragraph is information obtained from steel import 
        notification certificate applications concerning products 
        classified under chapter 72 or 73 of the Harmonized Tariff 
        Schedule of the United States that are imported into the United 
        States and includes with respect to such imports the Harmonized 
        Tariff Schedule of the United States classification (to the 
        tenth digit), the country of origin, the port of entry, 
        quantity, value of the products imported, and whether the 
        imports are entered for consumption or are entered into a 
        bonded warehouse or foreign trade zone. Such information shall 
        also be compiled in aggregate form and made publicly available 
        by the Secretary of Commerce on a weekly basis by public 
        posting through an Internet website. The information provided 
        under this section shall be in addition to any information 
        otherwise required by law.
    (d) Fees.--The Secretary of Commerce may prescribe reasonable fees 
and charges to defray the costs of carrying out the provisions of this 
section, including a fee for issuing a certificate under this section.
    (e) Single Producer and Exporter Countries.--Notwithstanding any 
other provision of law, the Secretary of Commerce shall make publicly 
available all information required to be released under subsection (c), 
including information obtained regarding imports from a foreign 
producer or exporter that is the only producer or exporter of goods 
subject to this section from a foreign country.
    (f) Regulations.--The Secretary of Commerce may prescribe such 
rules and regulations relating to the steel import notification and 
monitoring program as may be necessary to carry out this section.

                     TITLE II--LEGACY COST SHARING

SEC. 201. STEEL RETIREE HEALTH CARE BOARD.

    (a) Establishment.--There is established in the Department of Labor 
a Steel 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 
        or 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 203;
            (2) establish policies for the investment and management of 
        the Steelworker Retiree Health Care Trust Fund established 
        under section 202 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;
                    (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. 202. 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 203.
            (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 203 with respect to such Trust Fund.

SEC. 203. HEALTH CARE BENEFIT COSTS ASSISTANCE PROGRAM.

    (a) Establishment of Program.--The Steel 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) which is in effect on the date of 
                        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 
                        401(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 subparagraph (A)(i) which 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 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.--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 section 101(c).
            (4) Applicable effective date.--The term ``applicable 
        effective date'' means the date of 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 a 
        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 which 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. 204. 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 
        1.5 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 203 
        of the Steel Revitalization 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 Steel Retiree Health Care 
        Board under section 203(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 enactment of 
this Act.

                TITLE III--STEEL LOAN GUARANTEE PROGRAM

SEC. 301. MODIFICATION TO STEEL LOAN GUARANTEE PROGRAM.

    (a) In General.--Section 101 of the Emergency Steel Loan Guarantee 
Act of 1999 (Public Law 106-51; 15 U.S.C. 1841 note) is amended as 
follows:
            (1) Dollar limits and additional costs.--Subsection (f) is 
        amended--
                    (A) in paragraph (2), by striking ``1,000,000,000'' 
                and inserting ``$10,000,000,000;
                    (B) in paragraph (3), by striking ``$250,000,000'' 
                and inserting ``$500,000,000'';
                    (C) in paragraph (4), by striking ``as soon as 
                possible'' and inserting ``within 45 days''; and
                    (D) in paragraph (5), by striking ``$140,000,000'' 
                and inserting ``$1,800,000,000''.
            (2) Requirements for loan guarantees.--Subsection (g) is 
        amended--
                    (A) in the matter preceding paragraph (1), by 
                striking ``a private bank or investment company'' and 
                inserting ``an institution'';
                    (B) in paragraph (3), by striking ``the loan'' and 
                inserting ``the portion of the loan'';
                    (C) in paragraph (4), by striking ``and'' after the 
                semicolon; and
                    (D) by striking paragraph (5) and inserting the 
                following:
            ``(5) the proceeds of the loan will not be used for the 
        purpose of enhancing the position or cash recovery of existing 
        stockholders or financial creditors beyond that which such 
        stockholders and creditors would have received without the 
        loan; and
            ``(6) the company's business plan maximizes the retention 
        of jobs and capacity consistent with the long-term economic 
        viability of the company.''.
            (3) Terms and conditions.--Subsection (h) is amended--
                    (A) in paragraph (1), by striking ``2005'' and 
                inserting ``2015'';
                    (B) in paragraph (2), by striking the second 
                sentence and inserting the following: ``The Board may 
                give the unguaranteed portion of the loan different 
                security, lien priority, and payment preference than 
                the guaranteed portion of the loan.''; and
                    (C) by amending paragraph (4) to read as follows:
            ``(4) Guarantee level.--Any loan guarantee issued under 
        this section may not exceed 95 percent of the amount of 
        principal of the loan, plus the amount of any unpaid interest 
        on the loan.''.
            (4) Reports to congress.--Subsection (i) is amended by 
        striking ``of fiscal years 1999 and 2000, and annually 
        thereafter,'' and inserting ``fiscal year''.
            (5) Salaries and administrative expenses.--Subsection (j) 
        is amended--
                    (A) by striking ``5,000,000'' and inserting 
                ``$10,000,000''; and
                    (B) by striking ``, which may be transferred'' and 
                all that follows through ``Administration''.
            (6) Termination of guarantee authority.--Subsection (k) is 
        amended by striking ``2001'' and inserting ``2003''.
            (7) Monitoring, reporting, and foreclosure procedures.--
        Subsection (l) is amended by adding at the end the following: 
        ``All monitoring, reporting, and foreclosure procedures 
        established with respect to loan guarantees issued under this 
        section shall be consistent with customary practices in the 
        commercial banking industry. Minor or inadvertent reporting 
        violations shall not cause termination of any guarantee issued 
        under this section.''.
            (8) Composition of guarantee board.--Subsection (e) is 
        amended by striking paragraphs (1) through (3) and inserting 
        the following:
            ``(1) the Secretary of Commerce, who shall serve as 
        chairman,
            ``(2) the Secretary of Labor, and
            ``(3) the Secretary of the Treasury,
or their respective designees.''.
            (9) Definition of steel companies.--Subsection (c)(3)(B) is 
        amended to read as follows:
                    ``(B) is engaged in--
                            ``(i) the production or manufacture of a 
                        product identified by the American Iron and 
                        Steel Institute as a basic steel mill product, 
                        including ingots, slab and billets, plates, 
                        flat-rolled steel, sections and structural 
                        products, bars, rail type products, pipe and 
                        tube, and wire rod;
                            ``(ii) the production or manufacture of 
                        coke used in the production of steel; or
                            ``(iii) the mining of iron ore; and''.
    (b) Conforming Amendment.--Section 101 of the Emergency Steel Loan 
Guarantee Act of 1999 is further amended by striking subsection (m).
    (c) Applicability.--The amendments made by this section shall apply 
only with respect to any guarantee issued on or after the date of 
enactment of this Act.

                 TITLE IV--INCENTIVES FOR CONSOLIDATION

SEC. 401. GRANT PROGRAM FOR MERGED COMPANIES.

    (a) Eligible Persons.--Any person who acquires another person that 
produces any of the steel products set forth in section 101(c) 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 described in 
        section 101(c). 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 set out in section 101(c) 
                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 $100,000,000 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.
                                 <all>