HR 808 IH

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

March 1, 2001

Mr. VISCLOSKY (for himself, Mr. QUINN, Mr. KUCINICH, Mr. ENGLISH, Mr. MURTHA, Mr. NEY, Mr. CARDIN, Ms. HART, Mr. COYNE, Mr. BILIRAKIS, Mrs. JONES of Ohio, Mr. WALSH, Mr. MOLLOHAN, Mr. HORN, Mr. MATSUI, Mr. EVANS, Mr. COSTELLO, Mr. BROWN of Ohio, Ms. KAPTUR, Mr. MASCARA, Mr. LIPINSKI, Mr. OBERSTAR, Mr. RAHALL, Mr. STRICKLAND, Mr. BRADY of Pennsylvania, Mr. BONIOR, Mr. DINGELL, Mr. ABERCROMBIE, Mr. ANDREWS, Mr. BARCIA, Mr. BERRY, Mr. BISHOP, Mr. BLAGOJEVICH, Mr. BOSWELL, Mr. BOUCHER, Mr. BOYD, Ms. BROWN of Florida, Mrs. CHRISTENSEN, Mr. CLYBURN, Mr. CONYERS, Mr. CRAMER, Mr. CROWLEY, Mr. CUMMINGS, Mr. FILNER, Mr. FROST, Mr. GORDON, Mr. GREEN of Texas, Mr. HALL of Ohio, Mr. HILLIARD, Mr. HINCHEY, Mr. HOEFFEL, Mr. HOLDEN, Ms. HOOLEY of Oregon, Mr. JACKSON of Illinois, Mr. KANJORSKI, Mr. KILDEE, Ms. KILPATRICK, Mr. KLECZKA, Mrs. MCCARTHY of New York, Ms. MCCARTHY of Missouri, Mr. MCGOVERN, Mr. MCINTYRE, Ms. MCKINNEY, Mr. MCNULTY, Mr. MENENDEZ, Mr. GEORGE MILLER of California, Mrs. MINK of Hawaii, Ms. NORTON, Mr. PALLONE, Mr. PASCRELL, Mr. PETERSON of Pennsylvania, Mr. PHELPS, Ms. RIVERS, Mr. RODRIGUEZ, Mr. SANDERS, Mr. SANDLIN, Mr. SAWYER, Mr. SCOTT, Mr. SHIMKUS, Mr. THOMPSON of Mississippi, Mrs. THURMAN, Mr. TOWNS, Mr. TRAFICANT, Mr. WEXLER, and Mr. WYNN) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Financial Services, and 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 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- Notwithstanding any other provision of law, within 60 days after the date of the 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--

(1) 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

(2) 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. Determinations of share of future domestic consumption for purposes of paragraph (2) shall be based on projections made from the best available information.

(b) ENFORCEMENT AUTHORITY- Within 60 days after the date of the 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 the Congress a report that sets forth that determination 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 the 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 Harmonized Tariff Schedule of the United States 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.

(f) 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.

(g) 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.

(h) 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 the enactment of this Act or meets the requirements of subparagraph (B).

(B) PLANS MAINTAINED IN CONNECTION WITH SUBSEQUENT ACQUISITIONS- A group health plan meets the requirements of this subparagraph if--

(i) such plan is in effect as of the date of an affirmative determination under section 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) of subparagraph (A) 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 the enactment of this Act (or to an eligible beneficiary of such a participant), or

(B) in the case of a plan described in paragraph (1)(B), to an eligible steelworker participant who retires under such plan during the 180-day period beginning with the applicable effective date (or to an eligible beneficiary of such a participant).

(3) STEELWORKER PARTICIPANT- 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 the enactment of this Act, except that, in the case of a plan meeting the requirements of paragraph (1)(B), such term means the date of the affirmative decision of the Secretary of Commerce referred to in paragraph (1)(B).

(5) ELIGIBILITY- A steelworker participant under a designated steelworker group health plan (or such 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 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 the 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 the 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.

END