HR 4646 IH

To remedy certain effects of injurious steel imports by protecting benefits of steel industry retirees and encouraging the strengthening of the American steel industry.

MAY 2, 2002

Mr. DINGELL (for himself, Mr. VISCLOSKY, Mr. LAHOOD, Mr. PHELPS, Mr. BROWN of Ohio, Mr. GEPHARDT, Mr. MURTHA, Mr. ROSS, Mr. SAWYER, Mr. QUINN, Mr. HOLDEN, Mr. CARDIN, Mr. STUPAK, Mr. KUCINICH, Mrs. JONES of Ohio, Mr. STRICKLAND, Mr. LEVIN, Mr. MATSUI, Mr. GEORGE MILLER of California, Mr. OBERSTAR, Mr. DOYLE, Mr. COYNE, Mr. CONYERS, Ms. PELOSI, Mr. FROST, Mr. BONIOR, Mr. SHIMKUS, Ms. KAPTUR, Mrs. LOWEY, Ms. DELAURO, Mr. LAFALCE, Mr. SERRANO, Mr. HORN, Mr. CLYBURN, Mr. OLVER, Mrs. MEEK of Florida, Mr. EDWARDS, Mr. KENNEDY of Rhode Island, Mr. HINCHEY, Ms. ROYBAL-ALLARD, Mr. JACKSON of Illinois, Ms. KILPATRICK, Ms. RIVERS, Mr. FATTAH, Mr. LIPINSKI, Mr. KLECZKA, Mr. RAHALL, Mr. MASCARA, Mr. BLAGOJEVICH, Mr. PALLONE, Mr. LYNCH, Ms. BROWN of Florida, Mr. HILLIARD, Mr. COSTELLO, Mr. GREEN of Texas, Mr. MCNULTY, Ms. CARSON of Indiana, Mr. SANDERS, Mr. BARCIA, Mr. TOWNS, Mr. SANDLIN, Mr. DAVIS of Illinois, Mr. RUSH, Mr. MATHESON, Ms. LEE, Mr. CARSON of Oklahoma, Mr. KILDEE, Mr. CLAY, Mr. GORDON, Ms. DEGETTE, Mr. CUMMINGS, Mr. BOSWELL, Mr. REYES, Ms. BERKLEY, Mr. WEINER, Mr. LANTOS, Mr. MOORE, Mrs. MCCARTHY of New York, Ms. MILLENDER-MCDONALD, Ms. SLAUGHTER, Mr. HOLT, Mr. MALONEY of Connecticut, Mr. MCGOVERN, Mr. BISHOP, Mr. ENGEL, Mr. EVANS, Mr. FILNER, Mr. UDALL of New Mexico, Mr. RODRIGUEZ, Ms. MCKINNEY, Mr. HOEFFEL, Mr. BACA, Mr. ABERCROMBIE, Mr. NADLER, Mr. GUTIERREZ, Mr. WYNN, and Mr. PAYNE) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

To remedy certain effects of injurious steel imports by protecting benefits of steel industry retirees and encouraging the strengthening of the American steel industry.

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

SECTION 1. SHORT TITLE; CONGRESSIONAL FINDINGS AND PURPOSE.

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

(b) CONGRESSIONAL FINDINGS AND PURPOSE-

(1) FINDINGS- Congress finds the following:

(A) The United States Department of Commerce has documented that American steelworkers and their employers have been forced over the last 30 years to compete in a global steel market in which foreign governments have engaged in market distorting practices that to this day sustain enormous overcapacity in world steel supplies.

(B) The United States International Trade Commission, in its recent investigation of steel imports to the United States under section 201 of the Trade Act of 1974, has concluded that surges of imported steel since the Asian crisis of 1997 have caused serious injury to American producers of most steel products.

(C) Since 1997, 33 American steel companies have been forced to seek bankruptcy protection, over 45,000 steelworkers have lost their jobs, and over 100,000 steel retirees have suffered a complete cutoff of vital medical benefits.

(D) Many steel industry retirees were forced into retirement as a result of the restructurings of the 1980's and 1990's, and

then, as a second blow, recently lost their retiree medical insurance.

(E) Recent steel imports have pushed steel prices to such record lows that surviving American steelmakers face imminent financial collapse, and these firms employ over 185,000 workers in family-supporting jobs and provide crucial medical coverage to hundreds of thousands of retirees and beneficiaries.

(F) As American steel companies continue to weaken or fail, a very different trend is underway in other countries where governments shoulder a substantial portion of retirement costs and foreign steelmakers are now merging into companies of unprecedented size and market influence.

(G) If the American steel industry is to survive and compete, it must transform itself from a group of relatively small producers into a consolidated market force.

(H) For many American steel companies, the ability to consolidate is undermined by the burden of retiree health obligations.

(2) PURPOSE- It is the purpose of this Act to ensure that--

(A) retired steelworkers receive health care benefits coverage; and

(B) the American steel industry can continue to provide livelihoods to tens of thousands of American workers, their families, and communities through the receipt of assistance in consolidating its position in world steel markets.

SEC. 2. DEFINITIONS.

(a) TERMS RELATING TO BENEFITS PROGRAM- For purposes of this Act:

(1) RETIREE BENEFITS PROGRAM- The term `retiree benefits program' means the Steel Industry Retiree Benefits Protection Program established under this Act to provide medical benefits to eligible retirees and beneficiaries.

(2) STEEL RETIREE BENEFITS-

(A) IN GENERAL- The term `steel retiree benefits' means medical, surgical, or hospital benefits, whether furnished through insurance or otherwise, which are provided to retirees and eligible beneficiaries in accordance with an employee benefit plan (within the meaning of section 3(3) of the Employee Retirement Income Security Act of 1974) which--

(i) is established or maintained by a qualified steel company or an applicable acquiring company; and

(ii) is in effect on or after January 1, 2000.

Such term includes benefits provided under a plan without regard to whether the plan is established or maintained pursuant to a collective bargaining agreement.

(B) RETIREE-

(i) IN GENERAL- The term `retiree' means an individual who has met any years of service or disability requirements under an employee benefit plan described in subparagraph (A) which are necessary to receive steel retiree benefits under the plan.

(ii) CERTAIN RETIREES INCLUDED- An individual shall not fail to be treated as a retiree because the individual--

(I) retired before January 1, 2000; or

(II) was not employed at the steelmaking assets of a qualified steel company.

(b) TERMS RELATING TO STEEL COMPANIES- For purposes of this Act:

(1) QUALIFIED STEEL COMPANY-

(A) IN GENERAL- The term `qualified steel company' means any person which on January 1, 2000, was engaged in--

(i) the production or manufacture of a steel mill product;

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

(iii) the production of coke for use in a steel mill product.

(B) TRANSPORTATION- The term `qualified steel company' includes any person which on January 1, 2000, was engaged in the transportation of any steel mill product solely or principally for another person described in subparagraph (A), but only if such person and such other person are related persons.

(C) SUCCESSORS IN INTEREST- The term `qualified steel company' includes any successor in interest of a person described in subparagraph (A) or (B).

(2) STEELMAKING ASSETS AND STEEL MILL PRODUCTS-

(A) STEELMAKING ASSETS- The term `steelmaking assets' means any land, building, machinery, equipment, or other fixed assets located in the United States which, at any time on or after January 1, 2000, have been used in the activities described in subparagraph (A) or (B) of paragraph (1).

(B) STEEL MILL PRODUCT- The term `steel mill product' means any product defined by the American Iron and Steel Institute as a steel mill product.

(3) ACQUIRING COMPANY- The term `acquiring company' means any person which acquired on or after January 1, 2000, steelmaking assets of a qualified steel company with respect to which a qualifying event has occurred.

(c) OTHER DEFINITIONS- For purposes of this Act:

(1) RELATED PERSON- The term `related person' means, with respect to any person, a person who--

(A) is a member of the same controlled group of corporations (within the meaning of section 52(a) of the Internal Revenue Code of 1986) as such person; or

(B) is under common control (within the meaning of section 52(b) of such Code) with such person.

(2) SECRETARY- The term `Secretary' means the Secretary of Commerce.

(3) TRUST FUND- The term `Trust Fund' means the Steel Industry Legacy Relief Trust Fund established under subtitle C.

TITLE I--STEEL INDUSTRY RETIREE BENEFITS PROTECTION PROGRAM

Subtitle A--Establishment

SEC. 101. ESTABLISHMENT.

There is established a Steel Industry Retiree Benefits Protection program to be administered by the Secretary and the Board of Trustees of the Trust Fund in accordance with the provisions of this Act for the purpose of providing medical benefits to eligible retirees and eligible beneficiaries certified as participants in the program under subtitle B.

Subtitle B--Relief and Assumption of Liability, Eligibility, and Certification

SEC. 111. RELIEF AND ASSUMPTION OF LIABILITY.

(a) IN GENERAL- If--

(1) the Secretary certifies under section 112 that there was a qualifying event with respect to a qualified steel company,

(2) the asset transfer requirements of subsection (b) are met with respect to the qualifying event, and

(3) the qualified steel company and any acquiring company assumes their respective liability to make any contributions required under subsection (c),

then the United States shall assume liability for the provision of steel retiree benefits for each eligible retiree and eligible beneficiary certified for participation in the retiree benefits program under section 113 (and the qualified steel company, any predecessor or successor, and any related person to such company, predecessor, or successor shall be relieved of any liability for the provision of such benefits). The United States shall be treated as satisfying any liability assumed under this subsection if benefits are provided to eligible retirees and eligible beneficiaries under the retiree benefits program provided in subtitle C.

(b) REQUIRED ASSET TRANSFERS-

(1) IN GENERAL- The requirements of this subsection are met if the qualified steel company and any applicable acquiring company transfer to the Trust Fund all assets, as determined in accordance with rules prescribed by the Secretary, which, under the terms of an applicable collective bargaining agreement, were required to be set aside under an employee benefit plan or otherwise for the provision of the steel retiree benefits the liability for which (determined without regard to this subsection) is relieved by operation of subsection (a). The assets required to be transferred shall not include voluntary contributions, including voluntary contributions made pursuant to a voluntary employees beneficiary association trust, which are in excess of the contributions described in the preceding sentence.

(2) DETERMINATION- The amount of the assets to be transferred under paragraph (1) shall be determined at the time of the certification under section 112 and shall include interest from the time of the determination to the time of transfer. Such amount shall be reduced by any payments from such assets which are made after the determination by the qualified steel company or applicable acquiring company for the provision of steel retiree benefits for which such assets were set aside and the liability for which (determined without regard to this subsection) is relieved by operation of subsection (a).

(c) CONTRIBUTION REQUIREMENTS-

(1) CONTRIBUTIONS BASED ON OWNERSHIP OF STEELMAKING ASSETS-

(A) IN GENERAL- If there is a qualifying event certified under section 112 with respect to a qualified steel company--

(i) the qualified steel company shall assume the obligation to pay, and

(ii) if the qualified steel company transferred on or after January 1, 2000, any of its steelmaking assets, the qualified steel company and any acquiring company acquiring such assets as part of (or after) a qualifying event shall assume the obligation to pay,

to the Trust Fund for each of the years in the 10-year period beginning on the date of the qualifying event its ratable share of the amount determined under subparagraph (B) with respect to the steelmaking assets owned by such company or person.

(B) AMOUNT OF LIABILITY-

(i) IN GENERAL- The amount required to be paid under subparagraph (A) for any year shall be equal to--

(I) $5 per ton of products described in section 2(b)(1)(A)(i) and (iii), and

(II) $0.30 per ton of products described in section 2(b)(1)(A)(ii),

that are attributable to the steelmaking assets which are the subject of the qualifying event and shipped to a person other than a related person. If 2 or more persons own steelmaking capacity or assets, the liability under this clause shall be allocated ratably on the basis of their respective ownership interests. The determination under this clause for any year shall be made on the basis of shipments during the calendar year preceding the calendar year in which such year begins.

(ii) REDUCTIONS IN LIABILITY- The amount of any liability under clause (i) for any year shall be reduced by the amount of any assets transferred to the Trust Fund under subsection (b), reduced by any portion of such amount applied to a liability for any preceding year. If 2 or more persons are liable under subparagraph (A) with respect to any qualifying event, any reduction with respect to assets transferred to the Trust Fund under subsection (b) shall be allocated ratably among such persons on the basis of their respective liabilities or in such other manner as such persons may agree.

(2) JOINT AND SEVERAL LIABILITY- Any related person of any person liable for any payment under this subsection shall be jointly and severally liable for the payment.

(3) TIME AND MANNER OF PAYMENT- The Secretary shall establish the time and manner of any payment required to be made under this subsection, including the payment of interest.

SEC. 112. QUALIFYING EVENTS.

(a) IN GENERAL- For purposes of this Act, the term `qualifying event' means any--

(1) qualified acquisition;

(2) qualified closing;

(3) qualified election; and

(4) qualified bankruptcy transfer.

(b) QUALIFIED ACQUISITION-

(1) IN GENERAL- For purposes of this Act, the term `qualified acquisition' means any arm's-length transaction or series of related transactions--

(A) under which a person described in paragraph (2) (whether or not a qualified steel company) acquires by purchase, merger, stock acquisition, or otherwise all or substantially all of the steelmaking assets held by a qualified steel company as of January 1, 2000; and

(B) which occur on and after January 1, 2000, and before the date which is 2 years after the date of the enactment of this Act.

(2) PERSONS TO WHOM APPLICABLE- A person is described in this paragraph if--

(A) such person, or the ultimate parent in such person's controlled group (within the meaning of section 52(a) of the Internal Revenue Code of 1986) was incorporated under the laws of any State as of January 1, 2000; or

(B) in any case in which such steelmaking assets are acquired by a person not described in subparagraph (A), such assets are acquired by such person only after the qualified steel company whose assets are being acquired provides public notice of its intention to sell or otherwise

transfer substantially all its steelmaking assets, and a period of 6 months has transpired to provide to all persons who are likely to have a substantial interest in making an offer for such assets and who meet the requirements of subparagraph (A) a reasonable opportunity to make a bid for such steelmaking assets.

(3) TREATMENT OF RELATED PERSONS- The term `qualified acquisition' does not include any acquisition by a related person.

(c) QUALIFIED CLOSING- For purposes of this Act:

(1) IN GENERAL- The term `qualified closing' means--

(A) the permanent cessation on or after January 1, 2000, and before January 1, 2004, by a qualified steel company operating under the protection of chapter 11 or 7 of title 11, United States Code, of all activities described in subparagraph (A) or (B) of paragraph (1) of section 2(b); or

(B) the transfer on or after January 1, 2000, and before January 1, 2004, by a qualified steel company operating under the protection of chapter 11 or 7 of title 11, United States Code, of all or substantially all of its steelmaking assets to 1 or more persons other than related persons in an arms'-length transaction or series of related transactions which do not constitute a qualified acquisition.

(2) COMPANIES IN IMMINENT DANGER OF CLOSURE- A qualified closing of a qualified steel company operating under the protection of chapter 11 or 7 of title 11, United States Code, shall be treated as having occurred if the company--

(A) meets the acquisition effort requirements of paragraph (3);

(B) establishes to the satisfaction of the Secretary that--

(i) it is in imminent danger of becoming a closed company; or

(ii) in the case of a company operating under protection of chapter 11 of title 11, United States Code, it is unable to reorganize without the relief provided under this Act; and

(C) elects, in such manner as the Secretary prescribes, at any time after the date of the enactment of this Act and before the date which is 2 years after the date of the enactment of this Act, to avail itself of the relief provided under this Act.

(3) ACQUISITION EFFORT REQUIREMENTS-

(A) IN GENERAL- The requirements of this paragraph are met by a qualified steel company if--

(i) the company files with the Secretary within 10 days of the date of the enactment of this Act--

(I) a notice of intent to be acquired; and

(II) a description of the actions the company will undertake to have its steelmaking assets acquired in a qualified acquisition; and

(ii) the company at all times after the filing under clause (i) and the date which is 2 years after the date of the enactment of this Act (or, if earlier, the date on which the requirement of paragraph (2)(B) is satisfied) makes a continuing, good faith effort to have its steelmaking assets acquired in a qualified acquisition.

(B) GOOD FAITH EFFORT- A continuing, good faith effort under subparagraph (A)(ii) shall include--

(i) the active marketing of a company's steelmaking assets through the retention of an investment banker, the preparation and distribution of offering materials to prospective purchasers, allowing due diligence and investigatory activities by prospective purchasers, the active and good faith consideration of all expressions of interest by prospective purchasers, and any other affirmative action designed to result in a qualified acquisition of a company's steelmaking assets; and

(ii) a demonstration to the Secretary by the company that no bona fide and fair offer which would have resulted in a qualified acquisition of the company's steelmaking assets has been unreasonably refused.

(d) QUALIFIED ELECTION- For purposes of this Act--

(1) IN GENERAL- The term `qualified election' means an election by a qualified steel company

operating under the protection of chapter 11 or 7 of title 11, United States Code, meeting the acquisition effort requirements of subsection (c)(3) to transfer its obligations for steel retiree benefits to the retiree benefit program. Such an election shall be made not earlier than the date which is 2 years after the date of the enactment of this Act, and in such manner as the Secretary may prescribe.

(2) INDUSTRY-WIDE ELECTION- Notwithstanding paragraph (1), a qualified election shall be treated as having occurred with respect to a qualified steel company (whether or not operating under the protection of chapter 11 or 7 of title 11, United States Code) if--

(A) the Secretary determines that at least 200,000 eligible retirees and beneficiaries have been certified under section 113 for participation in the retiree benefits program; and

(B) the qualified steel company and each labor organization representing at least 10 percent of the union-represented employees engaged in the steelmaking operations of such qualified steel company join in a request, on or after the date of the determination under subparagraph (A), for an election to be provided the relief under this Act.

(e) QUALIFIED BANKRUPTCY TRANSFER- For purposes of this Act, the term `qualified bankruptcy transfer' means any transaction or series of transactions--

(1) under which the qualified steel company, operating under the protection of chapter 11 or 7 of title 11, United States Code, transfers by any means (including but not limited to a plan of reorganization) its control over at least 50 percent of the production capacity of its steelmaking assets to 1 or more persons which are not related persons of such company;

(2) which are not part of a qualified acquisition or qualified closing of a qualified steel company; and

(3) which occur on and after January 1, 2000, and before January 1, 2004.

(f) CERTIFICATION-

(1) IN GENERAL- The Secretary shall certify a qualifying event with respect to a qualified steel company if the Secretary determines that the requirements of this Act are met with respect to such event and that the asset transfer and contribution requirements of section 111 will be met.

(2) TIME FOR DECISION- The Secretary shall make any determination under this subsection as soon as possible after a request is filed (and in the case of a request for certification as a qualified acquisition filed at least 60 days before the proposed date of the acquisition, before such proposed date).

(3) ELIGIBILITY TO FILE REQUEST- A request for certification under this subsection may be made by the qualified steel company or any labor organization acting on behalf of retirees of such company.

SEC. 113. ELIGIBILITY AND CERTIFICATION.

(a) RETIREES-

(1) IN GENERAL- Any individual who is a retiree of a qualified steel company with respect to which the Secretary has certified under section 112 that a qualifying event has occurred shall be treated as an eligible retiree for purposes of this Act if--

(A) the individual was receiving steel retiree benefits under an employee benefit plan described in section 2(a)(2)(A) as of the date of the qualifying event; or

(B) the individual was eligible for such benefits on such date but was not receiving such benefits on such date because the plan had ceased, within the 2-year period ending with such date, to provide such benefits.

(2) CERTAIN INDIVIDUALS INCLUDED- An individual shall be treated as an eligible retiree under paragraph (1) if the individual--

(A) was an employee of the qualified steel company before a qualified acquisition;

(B) became an employee of the acquiring company as a result of the acquisition; and

(C) voluntarily retires within 3 years of the acquisition.

(b) BENEFICIARIES- An individual shall be treated as an eligible beneficiary for purposes of this Act if the individual is--

(1) the spouse, surviving spouse, or dependent of an eligible retiree, or

(2) the surviving spouse of an employee of a qualified steel company who died within 5 years prior to the date of the qualifying event, if such employee, based on service credited as of the date of the employee's death, would have been an eligible retiree if the employee had survived until the date of the qualifying event and retired on such date.

(c) CERTIFICATION OF ELIGIBLE RETIREES AND BENEFICIARIES-

(1) IN GENERAL- The Board of Trustees of the Trust Fund shall certify an individual as an eligible retiree or eligible beneficiary if the individual meets the requirements of this section.

(2) ELIGIBILITY TO FILE REQUEST- A request for certification under this subsection may be filed by any individual seeking to be certified under this subsection, the qualified steel company, an acquiring company, a labor organization acting on behalf of retirees of such company, or a committee appointed under section 1114 of title 11, United States Code.

(d) RECORDS- A qualified steel company, an acquiring company, and any successor in interest shall on and after the date of the enactment of this Act maintain and make available to the Secretary and the Board of Trustees of the Trust Fund, all records, documents, and materials (including computer programs) necessary to make the certifications under this section.

Subtitle C--Program Benefits

SEC. 121. PROGRAM BENEFITS.

(a) GENERAL RULE- Each eligible retiree and eligible beneficiary who is certified for participation in the retiree benefits program shall be entitled to receive health care benefits coverage described in subsection (b).

(b) HEALTH CARE BENEFITS COVERAGE-

(1) IN GENERAL- The Board of Trustees of the Trust Fund shall establish health care benefits coverage under which--

(A) eligible retirees and eligible beneficiaries who are not eligible for benefits under title XVIII of the Social Security Act are provided benefits (including deductibles and cost-sharing and beneficiary protections, including appeals rights) for health care items and services that are equal to or better than the benefits offered under such title as of January 1, 2002, and

(B) all eligible retirees and eligible beneficiaries are provided benefits for prescription drugs that are substantially the same as the benefits (including deductibles and cost-sharing and beneficiary protections, including appeals rights) offered as of January 1, 2002, under the Blue Cross/Blue Shield Standard Plan provided under the Federal Employees Health Benefit Program under chapter 89 of title 5, United States Code, to Federal employees and annuitants.

(2) APPLICATION OF SECONDARY PAYOR PROVISIONS-

(A) MEDICARE BENEFITS- In applying paragraph (1)(A), the secondary payor provisions of section 1862(b) of the Social Security Act shall apply to the benefits described in such paragraph in the same manner as they apply with respect to individuals who are 65 years of age or older and who are entitled to benefits under part A and enrolled under part B of title XVIII of such Act.

(B) FEHBP OUTPATIENT PRESCRIPTION DRUG BENEFITS- In applying paragraph (1)(B), the applicable secondary payor provisions of the Plan referred to in such paragraph shall apply to the benefits described in such paragraph in the same manner as they apply with respect to Federal employees and annuitants under such Plan who are eligible for benefits under the medicare program under title XVIII of the Social Security Act.

(3) CONTRACTING AUTHORITY- The Board of Trustees of the Trust Fund shall have the authority to enter into such contracts as are necessary to carry out the provisions of this subsection, including contracts necessary to ensure adequate geographic coverage and cost control.

(4) PREMIUMS- The Board of Trustees of the Trust Fund shall establish each year a monthly premium for each eligible retiree and beneficiary provided health care benefits coverage under paragraph (1) which is equal to the sum of--

(A) the monthly premium required under part B of title XVIII of the Social Security Act (without regard to any late enrollment penalties) for months in the year; and

(B) the product of--

(i) the monthly premium required of a full-time Federal employee for the Standard Plan coverage referred to in paragraph (1)(B); and

(ii) the ratio (as established by the Board of Trustees of the Trust Fund, in consultation with the Office of Personnel Management) of--

(I) the actuarial value of outpatient prescription drug benefits described in paragraph (1)(B); to

(II) the actuarial value, as of January 1, 2002, of all benefits under the Standard Plan referred to in such paragraph.

(c) PERIODIC REPORTS TO THE CONGRESS- Not later than January 1, 2007, and not less frequently than every 5 years thereafter, the Board of Trustees of the Trust Fund shall report to each House of the Congress concerning any recommendations of the Board of Trustees for changes in--

(1) the benefits provided under the health care benefits coverage established under this section; and

(2) the premiums charged for such coverage.

TITLE II--STEEL INDUSTRY LEGACY RELIEF TRUST FUND

SEC. 201. STEEL INDUSTRY LEGACY RELIEF TRUST FUND.

(a) CREATION OF TRUST FUND- There is established in the Treasury of the United States a trust fund to be known as the Steel Industry Legacy Relief Trust Fund, consisting of such amounts as may be appropriated to the Trust Fund as provided in this section.

(b) TRANSFERS TO TRUST FUND-

(1) IN GENERAL- There are appropriated to the Trust Fund amounts equivalent to--

(A) tariffs on steel mill products received in the Treasury under title II of the Trade Act of 1974;

(B) amounts received in the Treasury from asset transfers and contributions under section 111;

(C) amounts credited to the Trust Fund under subsection (e); and

(D) the premiums paid by retirees under the program.

(2) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to the Trust Fund each fiscal year an amount equal to the excess (if any) of--

(A) expenditures from the Trust Fund for the fiscal year; over

(B) the assets of the Trust Fund for the fiscal year without regard to this paragraph.

(c) EXPENDITURES- Amounts in the Trust Fund shall be available only for purposes of making expenditures--

(1) to meet the obligations of the United States with respect to liability for steel retiree benefits transferred to the United States under this Act; and

(2) incurred by the Secretary and the Board of Trustees in the administration of this Act.

(d) BOARD OF TRUSTEES-

(1) IN GENERAL- The Trust Fund and the retiree benefits program shall be administered by a Board of Trustees, consisting of--

(A) 2 individuals designated by agreement of the 5 qualified steel companies which, as of the date of the enactment of this Act--

(i) are conducting activities described in subparagraph (A) or (B) of section 201(b)(1); and

(ii) have the largest number of retirees;

(B) 2 individuals designated by the United Steelworkers of America in consultation with the Independent Steelworkers Union; and

(C) 3 individuals designated by individuals designated under subparagraphs (A) and (B).

(2) DUTIES- Except for those duties and responsibilities designated to the Secretary, the Board of Trustees shall have the responsibility to administer the Trust Fund and the retiree benefits program, including--

(A) enrolling eligible retirees and beneficiaries under the program;

(B) procuring the medical services to be provided under the program;

(C) entering into contracts, leases, or other arrangements necessary for the implementation of the program;

(D) implementing cost-containment measures under the program;

(E) collecting revenues and enforcing claims and rights of the program and the Trust Fund;

(F) making disbursements as necessary under the program; and

(G) acquiring and maintaining such records as may be necessary for the administration and implementation of the program.

(3) REPORT- The Board of Trustees report to Congress each year on the financial condition and the results of the operations of the Trust Fund during the preceding fiscal year and on its expected condition and operations during the next 2 fiscal years. Such report shall be printed as a House document of the session of Congress to which the report is made.

(e) TRANSFER OF AMOUNTS; MANAGEMENT OF FUNDS-

(1) TRANSFER OF AMOUNTS- The amounts appropriated to the Trust Fund shall be transferred at least monthly from the general fund of the Treasury to such Trust Fund on the basis of estimates made by the Secretary of the Treasury of the amounts referred to in such section. Proper adjustments shall be made in the amounts subsequently transferred to the extent prior estimates were in excess of or less than the amounts required to be transferred.

(2) MANAGEMENT OF TRUST FUND-

(A) REPORT- It shall be the duty of the Secretary of the Treasury to hold the Trust Fund and (after consultation with the Board of Trustees of the Trust Fund) to report to the Congress each year on the financial condition and the results of the operations of the Trust Fund during the preceding fiscal year and on its expected condition and operations during the next 5 fiscal years. Such report shall be printed as a House document of the session of the Congress to which the report is made.

(B) INVESTMENT-

(i) IN GENERAL- It shall be the duty of the Secretary of the Treasury to invest such portion of the Trust Fund as is not, in his or her judgment, required to meet current withdrawals. Such investments may be made only in interest-bearing obligations of the United States. For such purpose, such obligations may be acquired--

(I) on original issue at the issue price; or

(II) by purchase of outstanding obligations at the market price.

(ii) SALE OF OBLIGATIONS- Any obligation acquired by the Trust Fund may be sold by the Secretary of the Treasury at the market price.

(iii) INTEREST ON CERTAIN PROCEEDS- The interest on, and the proceeds from the sale or redemption of, any obligations held in the Trust Fund shall be credited to and form a part of the Trust Fund.

END