HR 4574 IH

To facilitate the consolidation and rationalization of the steel industry, and for other purposes.

APRIL 24, 2002

Mr. ENGLISH (for himself, Mr. REGULA, Ms. HART, Mr. ADERHOLT, Mr. GEKAS, and Mr. SHIMKUS) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Education and the Workforce, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

To facilitate the consolidation and rationalization of the steel industry, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; CONGRESSIONAL FINDINGS.

(a) SHORT TITLE- This Act may be cited as the `Steel Industry Legacy Relief and Transition Act of 2002'.

(b) CONGRESSIONAL FINDINGS- Congress finds that--

(1) the United States steel industry has been severely harmed by a record surge of steel imports into the United States;

(2) this surge in imports has resulted in the loss of more than 45,000 steel worker jobs, and is the cause of 33 bankruptcies;

(3) the import surge has also forced the United States steel industry into reduced volume, lower prices, and financial losses;

(4) on October 22, 2001, the International Trade Commission found that the domestic steel industry has been severely injured by the import surge;

(5) the United States steel industry has significant unfunded pension liabilities;

(6) the United States steel industry has massive retiree health care liabilities that total $13,000,000,000 and cost the steel industry almost $1,000,000,000 annually;

(7) these pension and health care liabilities pose a significant barrier to steel industry consolidation and rationalization actions that could improve the financial condition of the industry and reduce the adverse impact of foreign imports;

(8) steel bankruptcies, job losses, and financial losses are having a severe adverse effect on the Nation's economy and having serious negative effects on the tax base of cities, counties, and States, and on the essential health, education, and other services that Federal, State, and local government entities provide to their citizens;

(9) a strong steel industry is necessary to a healthy economy and to the defense preparedness of the United States; and

(10) expedited antitrust review procedures for transactions that will restructure the steel industry in the United States are necessary to support the President's efforts to negotiate solutions to international trade problems and to facilitate the most effective adjustment of the domestic steel industry to global competition.

TITLE I--AMENDMENTS TO TITLE II OF THE TRADE ACT OF 1974

SEC. 101. ASSISTANCE FOR STEEL INDUSTRY.

(a) IN GENERAL- Title II of the Trade Act of 1974 is amended by striking chapter 4 and inserting the following new chapter:

`CHAPTER 4--ASSISTANCE FOR STEEL INDUSTRY LEGACY COSTS

`Subchapter A--Eligibility and Applications

`SEC. 266. STEEL INDUSTRY LEGACY RELIEF PROGRAM.

`There is established in the Department of Labor a Steel Industry Legacy Relief Program to be administered by the Secretary of Labor (in this chapter referred to as the `Secretary') for the purpose of providing certain post-employment retiree health benefits previously provided by qualified steel companies purchased or otherwise acquired by an eligible buyer in accordance with this chapter.

`SEC. 266A. DEFINITIONS.

`In this chapter:

`(1) QUALIFIED ACQUISITION-

`(A) IN GENERAL- The term `qualified acquisition' means a transaction through which a qualified steel company purchases or otherwise acquires, either through stock or asset acquisition, all or substantially all of the steelmaking assets of another qualified steel company, in any case in which the acquiring company (and the ultimate parent among the members of the acquiring company's controlled group) and the company whose steelmaking assets are acquired are incorporated under the laws of a State.

`(B) SPECIAL RULE- An acquisition shall not be disqualified from being a qualified acquisition if the eligible buyer does not purchase or otherwise acquire a facility that has ceased operations.

`(2) QUALIFIED STEEL COMPANY- The term `qualified steel company' means any person if such person, or any member of such person's controlled group, was engaged, on January 1, 2000, in steel-based operations.

`(3) STEEL-BASED OPERATIONS- The term `steel-based operations' means--

`(A) the production and manufacture of a product defined by the American Iron and Steel Institute as a basic steel mill product, including ingots, slab and billets, plates, flat-rolled steel,

sections and structural products, bars, rail type products, pipe and tube, and wire rod;

`(B) the mining or processing of iron ore or beneficiated iron ore products;

`(C) the production of coke for use in a steel mill product described in subparagraph (A); and

`(D) the transportation of a product by a person solely or principally for another person engaged in operations described in subparagraph (A), (B), or (C), but only if the person transporting the product is a member of that other person's controlled group.

`(4) STEEL-MAKING ASSETS- The term `steel-making assets' means the land, buildings, machinery, equipment, and other assets that, at any time on or after January 1, 2000, was used in--

`(A) the production, manufacturing, or distribution of products described in paragraph (3)(A);

`(B) the mining, processing, or distribution of iron ore or beneficiated iron ore products;

`(C) the production of coke for use in a steel mill product described in paragraph (3)(A); or

`(D) the transportation of a product by a person solely or principally for another person engaged in operations described in subparagraph (A), (B), or (C), but only if the person transporting the product is a member of that other person's controlled group.

`(5) STEEL RETIREE HEALTH BENEFIT-

`(A) IN GENERAL- The term `steel retiree health benefit' means a retiree health benefit provided under an employee benefit plan, as in effect on the date of the enactment of this chapter, in any case in which--

`(i) such plan is maintained on such date by a qualified steel company, or a qualified steel company is obligated on such date to contribute to such plan under an agreement entered into by such company and an employee organization representing employees of such company, and

`(ii) such plan, as so in effect, provides such benefit to a participant or a participant's beneficiary in connection with such participant's retirement under the plan.

`(B) BENEFITS UNDER ACQUIRED COMPANY'S PLAN TREATED AS RETIREE HEALTH BENEFITS- Such term includes any benefit treated under applicable law in connection with a qualified acquisition as a retiree health benefit provided to a participant or a participant's beneficiary by a plan to which the acquired company is obligated to contribute, irrespective of whether or to what extent the participant was employed by the acquired company.

`(6) ACQUIRED COMPANY- The term `acquired company' means a qualified steel company all or substantially all of whose steelmaking assets are purchased or otherwise acquired in a qualified acquisition.

`(7) ELIGIBLE BUYER- The term `eligible buyer' means a qualified steel company that meets the requirements for carrying out a qualified acquisition.

`(8) COVERED BENEFITS- The term `covered benefits' means--

`(A) steel retiree health benefits of any participant under any employee benefit plan sponsored by an acquired company, as of the date of acquisition, including benefits that are attributable to rationalization, except that the term does not include steel retiree health care benefits provided by actively operating nonsteel subsidiaries of an acquired company;

`(B) steel retiree health benefits for employees of an eligible buyer that are attributable to rationalization; and

`(C) steel retiree health benefits provided by a closed company as of the date the company ceases to operate.

`(9) RATIONALIZATION- The term `rationalization' means--

`(A) the voluntary or involuntary termination of an employee of an acquired company that occurs within five years after the consummation of the qualified acquisition; or

`(B) the voluntary or involuntary termination of an employee of an eligible buyer pursuant to an action by the eligible buyer designed to reduce production capacity that occurs within five years after the consummation of a qualified acquisition.

`(10) CLOSED COMPANY- The term `closed company' means--

`(A) a qualified steel company that ceases operations (as defined by the Secretary) on or after January 1, 2000, and which has dismantled its facilities, or which the Secretary certifies is incapable of operating in the future due to facility conditions, operating costs, or similar reasons; or

`(B) a qualified steel company which on or after January 1, 2000, and before May 1, 2002, has dissolved and is no longer liable for the provision of steel retiree health benefits.

`(11) CONTROLLED GROUP- The term `controlled group' has the meaning given that term in section 52(a) of the Internal Revenue Code of 1986.

`(12) BOARD- The term `Board' means the Steel Transition Board established under section 269.

`(13) STATE- The term `State' means any State, the District of Columbia, and any territory or possession of the United States.

`(14) OTHER TERMS- Any term used in this chapter that is not defined in this section and is defined in section 3 or 4001(a)(14(A) of the Employee

Retirement Income Security Act of 1974 shall have the meaning given that term in such section 3 or 4001(a)(14)(A) of that Act.

`SEC. 266B. PETITIONS AND DETERMINATIONS.

`(a) FILING OF PETITIONS- A petition for a certification of eligibility for assistance under this chapter may be filed with the Secretary by--

`(1) an eligible buyer that makes a qualified acquisition or rationalization, or its representative, or

`(2) a person eligible for covered benefits, or that person's representative.

`(b) CERTIFICATION OF ELIGIBLE BUYER-

`(1) EFFECT AND BASIS OF DETERMINATION- If the Secretary provides a certification that an eligible buyer is eligible for assistance under this chapter with respect to covered benefits, the eligible buyer shall not be obligated to provide such covered benefits to any person or entity. The Secretary shall certify steel retiree health benefits as eligible for coverage under section 267 if the Secretary determines that--

`(A) the steel retiree health benefits are covered benefits within the meaning of section 266A; and

`(B) all assets, as determined in accordance with rules prescribed by the Secretary, which, under the terms of an applicable collective bargaining agreement, were required to be set aside under an employee benefit plan or otherwise for the provision of the steel retiree benefits the liability for which is relieved by operation of this subsection, are identified and available for transfer to the Steel Industry Legacy Relief Trust Fund as of the date of consummation of the qualified acquisition.

The assets required to be transferred under subparagraph (B) shall not include voluntary contributions, including voluntary contributions made pursuant to a voluntary employees beneficiary association trust.

`(2) DETERMINATION OF TRANSFER AMOUNT- The amount of the assets to be transferred under paragraph (1)(B) shall be determined at the time of the certification under this subsection and shall include interest from the time of the determination to the time of transfer. Such amount shall be reduced by any payments from such assets which are made, after the determination, by the qualified steel company or applicable acquiring company for the provision of steel retiree benefits for which such assets were set aside and the liability for which is relieved by operation of this subsection.

`(3) TRANSFER OF FUNDS- Upon making a certification under paragraph (1), or on the date of the consummation of the qualified acquisition, whichever occurs later, the Secretary shall ensure that the funds described in paragraph (1)(B) are transferred to the Steel Industry Legacy Relief Trust Fund.

`(c) CONTRIBUTION REQUIREMENTS-

`(1) IN GENERAL- If under subsection (b) the Secretary certifies steel retiree health benefits of an acquired company as eligible for coverage under section 267, the eligible buyer shall pay to the Trust Fund for each of the years in the 10-year period beginning on the date of consummation of the applicable qualified acquisition the amount determined under paragraph (2) with respect to the steelmaking assets acquired by such company or person.

`(2) AMOUNT OF LIABILITY-

`(A) IN GENERAL- The amount required to be paid under paragraph (1) for any year shall be equal to $5 per ton of products described in section 266A(3)(A), (B), and (C) that are attributable to the steelmaking assets of a qualified steel company that are the subject of a qualified acquisition and are transported to a person other than a member of the controlled group of that qualified steel company.

`(B) REDUCTIONS IN LIABILITY- The amount of any liability under subparagraph (A) for any year shall be reduced by the amount of any assets transferred to the Trust Fund under subsection (b)(3), reduced by any portion of such amount applied to a liability for any preceding year.

`(d) CERTIFICATION OF CLOSED COMPANY- The Secretary shall certify a steel company as a closed company if the Secretary determines that the company is a closed company under section 266A(10).

`(e) CERTIFICATION OF PERSONS- The Secretary shall certify a person as eligible for assistance under section 267 if the Secretary determines that such person is eligible to receive covered benefits.

`(f) TIMING OF CERTIFICATIONS- The Secretary shall make a determination on a petition under this section as soon as possible after the date on which the petition is filed, but in any event not later than 60 days after the filing date.

`(g) MAKING DETERMINATIONS PRIOR TO ACQUISITION- The Secretary shall provide for making determinations of eligibility under this section before the date of consummation of the applicable qualified acquisition if a petition for certification is submitted 60 days or more in advance of such date.

`Subchapter B--Assistance

`SEC. 267. PAYMENT OF PREMIUMS FOR RETIREE HEALTH BENEFITS.

`The Secretary shall provide for the purchase of coverage of steel retiree health benefits for retirees, surviving spouses, and dependents who are certified to be eligible for assistance pursuant to determinations made under section 266B.

`SEC. 267A. COMMENCEMENT OF COVERAGE.

`(a) IN GENERAL- Subject to subsection (b), if eligibility for assistance under this chapter has been determined before the date of consummation of a qualified acquisition or a rationalization, coverage under section 267 shall begin as of the date of consummation or rationalization.

`(b) LIMITATION- Payment of benefits under subsection (a) shall be effective only if funds identified pursuant to section 266B(b)(2) with respect to the acquired company are transferred to the Steel Industry Legacy Relief Trust Fund as of the date of consummation of the qualified acquisition.

`SEC. 267B. EXTENT OF BENEFIT COVERAGE.

`Benefit coverage for a person under section 267 shall not exceed the steel retiree health benefit coverage for which the person would otherwise have been eligible.

`SEC. 267C. CONTRACT AUTHORITY.

`The Secretary shall enter into such contracts as the Secretary considers necessary to provide for adequate geographic coverage and to provide for adequate cost controls for the benefits provided under section 267.

`SEC. 267D. COSTS.

`The cost of assistance provided pursuant to section 267 shall be paid from the Steel Industry Legacy Relief Trust Fund.

`Subchapter C--Steel Industry Legacy Relief Trust Fund

`SEC. 268. ESTABLISHMENT.

`There is established in the Treasury of the United States a trust fund to be known as the `Steel Industry Legacy Relief Trust Fund' (hereinafter in this chapter referred to as the `Trust Fund'), consisting of such amounts as may be appropriated or credited to the Trust Fund as provided in this subchapter.

`SEC. 268A. DUTIES ON STEEL PRODUCTS.

`There shall be deposited into the Trust Fund amounts equivalent to the duties on imports of basic steel mill products described in section 266A(3)(A) that are collected as a result of action taken under title II of the Trade Act of 1974 with respect to imports of such products.

`SEC. 268B. VEBA FUNDS.

`There shall be deposited into the Trust Fund the amounts of all funds described in section 266B(b)(1)(B) which are transferred to the Trust Fund pursuant to an acquisition of an acquired company.

`SEC. 268C. CONTRIBUTIONS.

`There shall be deposited into the Trust Fund the amounts of all contributions described in section 266B(c) which are paid to the Trust Fund pursuant to the acquisition of an acquired company.

`SEC. 268D. ADDITIONAL FUNDS.

`There are hereby authorized to be appropriated to the Trust Fund such additional sums as may be required to make the expenditures referred to in section 267.

`SEC. 268E. USE OF AMOUNTS IN TRUST FUND.

`Amounts in the Trust Fund shall be available for making expenditures to meet those obligations of the United States--

`(1) incurred under this chapter; and

`(2) for those portions of the administrative expenses of the Department of Labor which are attributable to activities described in this chapter.

`SEC. 268F. PAYMENT TO SECRETARY OF LABOR.

`The Secretary of the Treasury shall pay from time to time from the Trust Fund such amounts as the Secretary of Labor certifies are necessary to make the expenditures provided for by this chapter, and the payments of administrative expenses referred to in section 268E(2).

`SEC. 268G. DUTIES OF SECRETARY OF THE TREASURY.

`(a) MANAGEMENT OF FUND- It shall be the duty of the Secretary of the Treasury to hold and manage the Trust Fund.

`(b) REPORT TO CONGRESS- The Secretary of the Treasury shall report to the Congress, not later than December 31 of each year, on the financial condition and the results of the operations of the Trust Fund during the preceding fiscal year and on its expected condition and operations during the current and succeeding 4 fiscal years. Such report shall be printed as a document of the House of Representatives of the session of the Congress in which the report is made.

`(c) INVESTMENT OF AMOUNTS IN TRUST FUND- The Secretary of the Treasury shall invest such portion of the Trust Fund as is not, in the judgment of the Secretary, required to meet current withdrawals.

`Subchapter D--Steel Transition Board

`SEC. 269. STEEL TRANSITION BOARD.

`(a) ESTABLISHMENT- There is established the Steel Transition Board to review and approve or disapprove applications for expedited antitrust review under section 269A of this Act.

`(b) COMPOSITION- The Board shall consist of--

`(1) the Secretary or the designee of the Secretary;

`(2) the Secretary of Commerce or the designee of the Secretary; and

`(3) the Attorney General or the designee of the Attorney General.

`SEC. 269A. PETITIONS FOR APPROVAL.

`(a) PETITION- A petition for a certification of eligibility for assistance under this chapter may include an application for expedited antitrust review by the Board.

`(b) EXPEDITED REVIEW- An application for expedited antitrust review of a transaction by the Board shall include 3 copies of any premerger notification materials filed by any person under section 7A of the Clayton Act (15 U.S.C. 18a) for such transaction, and any other information required by the Board.

`(c) DISCLOSURE- Any information or documentary material filed with the Board pursuant to this section shall be exempt from disclosure under section 552 of title 5, United States Code, and no such information or documentary material may be made public, except as may be relevant to any administrative or judicial action or proceeding. Nothing in this section is intended to prevent disclosure of such information or documentary material to any representative of the Board or to the Congress (including any duly authorized committee of the Congress).

`(d) RULES- Not later than 90 days after the date of enactment of this subchapter, the Secretary of Labor shall issue rules governing applications for expedited antitrust review and review of such applications by the Board. Such rules shall specify any information to be provided by applicants under this section, the procedures for hearing and presenting evidence relevant to such applications, and other matters determined to be appropriate by the Secretary.

`(e) DETERMINATION- Not later than 120 days after the Board determines that an application under this section is substantially complete, the Board shall approve, disapprove, or approve such application subject to conditions.

`(f) REVIEW- Any person with a substantial interest in a final decision by the Board may obtain review of such decision in the United States Court of Appeals for the District of Columbia Circuit, by filing a written petition within 30 days from the date of the final decision. A copy of such petition shall be transmitted forthwith by the clerk of the court to the Board. It shall be the duty of the senior judge of the court, qualified to participate in the consideration of the case on the merits, to designate immediately 3 circuit judges of the court, 1 of whom shall be such qualified senior judge and the other 2 of whom shall be 2 circuit judges next in order of seniority to such qualified senior judge, to hear and determine the appeal in such case. It shall be the duty of the court, so comprised, to assign the case for argument at the earliest practicable date and to hear and determine the same. The decision of the 3 circuit judges so designated, or of a majority in number thereof, shall be final, and there shall be no review of such decision by additional circuit judges. The findings of the Board as to the facts, if supported by evidence, shall be conclusive. The conclusions of law of the Board may be set aside only if the court finds they are arbitrary and capricious. A decision by the court under this section is reviewable only by the Supreme Court under section 1254 of title 28, United States Code.

`SEC. 269B. ANTITRUST LAWS.

`(a) APPLICATION OF THE ANTITRUST LAWS- The antitrust laws shall not apply to any transaction approved by the Board pursuant to this subchapter.

`(b) DEFINITION- For purposes of this subchapter, the term `antitrust laws'--

`(1) has the meaning given it in subsection (a) of the first section of the Clayton Act (15 U.S.C. 12(a)), except that such term includes section 5 of the Federal Trade Commission Act (15 U.S.C. 45) to the extent such section 5 applies to unfair methods of competition; and

`(2) includes any State law similar to the laws referred to in paragraph (1).

`SEC. 269C. STANDARD FOR APPROVAL.

`(a) QUALIFIED ACQUISITIONS- In its expedited antitrust review of applications under this subchapter, the Board shall determine whether the application relates to a qualified acquisition within the meaning of section 266A.

`(b) PUBLIC INTEREST- If the Board determines that the application relates to a qualified acquisition, the Board shall determine whether any transaction or transactions to which the application relates is in the public interest. In making such determination, the Board shall consider both conventional standards of antitrust law and the establishment of a globally competitive domestic steel industry, taking into account--

`(1) the global nature of competition in steel markets;

`(2) the urgent need for the steel industry in the United States to adjust to current and future global market conditions; and

`(3) the national security and foreign policy objectives of the United States, including international comity.

`SEC. 269D. SUNSET.

`This subchapter is repealed 7 years after the date of the enactment of this subchapter.

`Subchapter E--General Provisions

`SEC. 270. RECORDKEEPING.

`(a) PROVIDING RECORDS TO THE SECRETARY- Each eligible buyer receiving assistance under this chapter shall provide to the Secretary records from the acquired company acquired by that eligible buyer which fully disclose the nature and amount of covered benefits related to the acquired company's employee benefit plans which will facilitate the accurate determination and subsequent maintenance of coverage by the Secretary pursuant to sections 266B and 267. An eligible buyer shall provide such other records as the Secretary may prescribe in connection with the determination of eligibility for coverage and the administration of coverage.

`(b) KEEPING RECORDS- Any entity that receives payments from the Secretary under section 267 shall keep such records as the Secretary may prescribe.

`SEC. 270A. PENALTIES.

`Whoever makes a false statement of a material fact knowing it to be false, or knowingly fails to disclose a material fact, or whoever willfully overvalues any obligation, for the purpose of obtaining money, property, or anything of value under this chapter, shall be fined not more than $5,000, or imprisoned for not more than 2 years, or both.

`SEC. 270B. CIVIL ACTIONS.

`In providing financial assistance under this chapter, the Secretary may sue and be sued in any court of record of a State having general jurisdiction or in any United States district court, and such jurisdiction is conferred upon such district court to determine such controversies without regard to the amount in controversy, except that no attachment, injunction, garnishment, or other similar process, mesne or final, shall be issued against the Secretary or the property of the Secretary. Nothing in this section shall be construed to except the activities pursuant to section 267 from the application of sections 516, 547, and 2679 of title 28, United States Code.

`SEC. 270C. REGULATIONS.

`The Secretary shall prescribe such regulations as may be necessary to carry out the provisions of this chapter.'.

(b) CONFORMING AMENDMENT- The table of contents of the Trade Act of 1974 is amended by striking the items relating to chapter 4 of title II and inserting the following:

`Chapter 4--Assistance for Steel Industry Legacy Costs

`SUBCHAPTER A--ELIGIBILITY AND APPLICATIONS

`SUBCHAPTER B--ASSISTANCE

`SUBCHAPTER C--STEEL INDUSTRY LEGACY RELIEF TRUST FUND

`SUBCHAPTER D--STEEL TRANSITION BOARD

`SUBCHAPTER E--GENERAL PROVISIONS

SEC. 102. EFFECTIVE DATE.

The amendments made by this title shall take effect on the date of the enactment of this Act.

TITLE II--AMENDMENTS TO TITLE IV OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974

SEC. 201. TERMINATION OF PENSION PLANS IN CONNECTION WITH ACQUISITIONS OF STEEL COMPANIES.

(a) IN GENERAL- Title IV of the Employee Retirement Income Security Act of 1974 is amended by inserting after section 4048 (29 U.S.C. 1348) the following new section:

`TREATMENT OF CERTAIN STEEL PLANS INVOLVED IN QUALIFIED ACQUISITIONS

`SEC. 4049. (a) TERMINATIONS IN CONNECTION WITH QUALIFIED ACQUISITIONS- In the case of any qualified acquisition of a qualified steel company, any qualified defined benefit plan which is maintained by the acquired company immediately before the acquisition shall be treated as terminated under this title.

`(b) TREATMENT OF PLAN ASSETS AND LIABILITIES-

`(1) IN GENERAL- Subject to paragraph (2), all assets and liabilities of the plan treated as terminated under subsection (a) shall continue to be treated as assets and liabilities of such terminated plan, notwithstanding any allocation of such assets and liabilities to spun off plans in accordance with section 414(l) of the Internal Revenue Code of 1986.

`(2) EXCLUSION OF ASSETS AND LIABILITIES ACQUIRED BY ACTIVE CONTROLLED GROUP MEMBERS NOT ENGAGED IN STEEL-BASED OPERATIONS- Subsection (a) shall not apply with respect to any plan assets or liabilities which are acquired, in connection with the qualified acquisition, by any person which is a member of the controlled group of the person acquiring the qualified steel company and is, at the time of the qualified acquisition, in active operation but whose business does not include steel-based operations (or by any plan to which any person who is such a member is obligated to contribute). The acquired company shall provide for separate treatment as a terminated plan of so much of the acquired plan as does not consist of such assets and liabilities.

`(c) APPLICABILITY WITH RESPECT TO ALL PARTICIPANTS AND BENEFICIARIES- No asset or liability shall be excluded from treatment as an asset or liability of the eligible plan in connection with any participant, or beneficiary thereof, on the basis of any classification of a participant as an active employee or as a retiree.

`(d) EXCLUSION OF ASSETS AND LIABILITIES SUBSEQUENTLY ACCRUED- This section shall not apply with respect to assets or liabilities accruing after the date of the qualified acquisition.

`(e) PETITION PROCEDURE- The Secretary of Labor shall make determinations under this subsection, in consultation with the acquired company, in accordance with procedures which shall be prescribed by the Secretary. Any such determination in connection with a qualified acquisition, shall be made only pursuant to a petition for such determination filed with the Secretary not later than 60 days before the effective date of the acquisition. The Secretary shall provide, to the maximum extent practicable, for the conduct of the petition process pursuant to this paragraph in conjunction with the petition process established under section 268 of the Trade Act of 1984.

`(f) DEFINITIONS- For purposes of this section--

`(1) QUALIFIED ACQUISITION- The term `qualified acquisition' means a transaction through which a qualified steel company purchases or otherwise acquires, either through stock or asset acquisition, all or substantially all of the steelmaking assets of another qualified steel company, in any case in which the acquiring company (and the ultimate parent among the members of the acquiring company's controlled group) and the company whose steelmaking assets are acquired are incorporated under the laws of a State.

`(2) QUALIFIED PLAN- The term `qualified plan' means a defined benefit plan (as defined in section 3(35)) if each trust forming a part of the plan is a qualified trust under section 401(a) of the Internal Revenue Code of 1986.

`(3) QUALIFIED STEEL COMPANY- The term `qualified steel company' means any person if such person, or any member of such person's controlled group, was engaged, on January 1, 2000, in steel-based operations.

`(4) STATE- The term `State' means any State, the District of Columbia, and any territory or possession of the United States.

`(5) STEEL-BASED OPERATIONS- The term `steel-based operations' means--

`(A) the production and manufacture of a product defined by the American Iron and Steel Institute as a basic steel mill product, including ingots, slab and billets, plates, flat-rolled steel, sections and structural products, bars, rail type products, pipe and tube, and wire rod;

`(B) the mining or processing of iron ore or beneficiated iron ore products;

`(C) the production of coke for use in a still mill product described in subparagraph (A); and

`(D) the transportation of a product by a person solely or principally for another person engaged in operations described in subparagraph (A), (B), or (C), but only if the person transporting the product is a member of that other person's controlled group.

`(6) STEEL-MAKING ASSETS- The term `steel-making assets' means the land, buildings, machinery, equipment, and other assets that, at any time on or after January 1, 2000, was used in--

`(A) the production, manufacturing, or distribution or products described in paragraph (5)(A);

`(B) the mining, processing, or distribution of iron ore or beneficiated iron ore products;

`(C) the production of coke for use in a steel mill product described in paragraph (5)(A); or

`(D) the transportation of a product by a person solely or principally for another person engaged in operations described in subparagraph (A), (B), or (C), but only if the person transporting the product is a member of that other person's controlled group.

`(7) CONTROLLED GROUP- The term `controlled group' has the meaning given that term in section 52(a) of the Internal Revenue Code of 1986.'.

(b) CLERICAL AMENDMENT- The table of contents in section 1 of such Act is amended by inserting after the item relating to section 4048 the following new item:

`Sec. 4049. Treatment of certain steel plans involved in qualified acquisitions.'.

(c) EFFECTIVE DATE- The amendments made by this section shall apply with respect to qualified acquisitions occurring on or after the date of the enactment of this Act.

END