S 2189 IS
107th CONGRESS
2d Session
S. 2189
To amend the Trade Act of 1974 to remedy certain effects of injurious
steel imports by protecting benefits of steel industry retirees and encouraging
the strengthening of the American steel industry.
IN THE SENATE OF THE UNITED STATES
April 17, 2002
Mr. ROCKEFELLER (for himself, Mr. SPECTER, Mr. DASCHLE, Mr. WELLSTONE, Mr.
DURBIN, Ms. MIKULSKI, Mr. SARBANES, Mr. DAYTON, and Mrs. CLINTON) introduced the
following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Trade Act of 1974 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
Consolidation and Retiree Benefits Protection 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, 32 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 and life insurance 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 and life insurance
obligations.
(2) PURPOSE- It is the purpose of this Act to ensure that--
(A) retired steelworkers receive medical and life insurance 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. ESTABLISHMENT OF STEEL INDUSTRY RETIREE BENEFITS PROTECTION
PROGRAM.
The Trade Act of 1974 is amended by adding at the end the following new
title:
`TITLE IX--PROTECTION FOR STEEL INDUSTRY RETIREMENT
BENEFITS
`SUBTITLE A. Definitions.
`SUBTITLE B. Steel Industry Retiree Benefits Protection Program.
`SUBTITLE C. Steel Industry Legacy Relief Trust Fund.
`Subtitle A--Definitions
`Sec. 901. Definitions.
`SEC. 901. DEFINITIONS.
`(a) TERMS RELATING TO BENEFITS PROGRAM- For purposes of this title--
`(1) RETIREE BENEFITS PROGRAM- The term `retiree benefits program' means
the Steel Industry Retiree Benefits Protection Program established under
this title to provide medical and death benefits to eligible retirees and
beneficiaries.
`(2) STEEL RETIREE BENEFITS-
`(A) IN GENERAL- The term `steel retiree benefits' means medical,
surgical, or hospital benefits, and death 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.
`(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 title--
`(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 title--
`(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.
`Subtitle B--Steel Industry Retiree Benefits Protection
Program
`I. Establishment.
`II. Relief and assumption of liability, eligibility, and certification.
`III. Program benefits.
`PART I--ESTABLISHMENT
`Sec. 902. Establishment.
`SEC. 902. 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 title for the purpose of
providing medical and death benefits to eligible retirees and eligible
beneficiaries certified as participants in the program under part II.
`PART II--RELIEF AND ASSUMPTION OF LIABILITY, ELIGIBILITY, AND
CERTIFICATION
`Sec. 911. Relief and assumption of liability.
`Sec. 912. Qualifying events.
`Sec. 913. Eligibility and certification of eligibility.
`SEC. 911. RELIEF AND ASSUMPTION OF LIABILITY.
`(1) the Secretary certifies under section 912 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 913 (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 part III.
`(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 912 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 912 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 $5 per ton of products described in
section 901(b)(1)(A) 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) FASB LIABILITY IN CASE OF CERTAIN QUALIFYING EVENTS-
`(A) IN GENERAL- If there is a qualifying event (other than a
qualified acquisition) with respect to a qualified steel company, then,
subject to the provisions of subparagraphs (C) and (D), the qualified
steel company shall be liable for payment to the Trust Fund of the amount
determined under subparagraph (B). If a qualified acquisition occurs after
another qualifying event, such other qualifying event shall be disregarded
for purposes of this paragraph.
`(B) AMOUNT OF LIABILITY- The amount determined under this
subparagraph shall be equal to the excess (if any) of--
`(i) the amount determined under the Financial Accounting Standards
Board Rule 106 as being equal to the present value of the steel retiree
benefits of eligible retirees and beneficiaries of the qualified steel
company the liability for which (determined without regard to any
modification pursuant to section 1114 of title 11, United States Code)
is relieved under subsection (a), over
`(I) the value of the assets transferred under subsection (b) with
respect to the retirees and beneficiaries, and
`(II) the present value of any payments (other than payments
determined under this subparagraph) to be made under this subsection
with respect to steelmaking assets of the qualified steel
company.
`(C) DISCHARGES IN BANKRUPTCY- The amount of any liability under
subparagraph (B) shall be reduced by the portion of such liability which,
in accordance with the provisions of title 11, United States Code, is
discharged in any bankruptcy proceeding.
`(D) NO LIABILITY IF INDUSTRY-WIDE ELECTION MADE- If a qualifying
event occurs by reason of a qualified election under section 912(d)(2)(B),
then--
`(i) any liability that arose under this paragraph for any
qualifying event occurring before such election is extinguished (and any
payment of such liability shall be refunded from the Trust Fund with
interest), and
`(ii) no liability shall arise under this paragraph with respect to
the qualifying event occurring by reason of such election or any
subsequent qualifying event.
`(3) 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.
`(4) 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. 912. QUALIFYING EVENTS.
`(a) IN GENERAL- For purposes of this title, the term `qualifying event'
means any--
`(1) qualified acquisition,
`(3) qualified election, and
`(4) qualified bankruptcy transfer.
`(b) QUALIFIED ACQUISITION- For purposes of this title, the term
`qualified acquisition' means any arms'-length transaction or series of
related transactions--
`(1) under which a person (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 the qualified steel
company as of January 1, 2000, and
`(2) which occur on and after January 1, 2000, and before the date which
is 2 years after the date of the enactment of this title.
Such term shall not include any acquisition by a related person.
`(c) QUALIFIED CLOSING- For purposes of this title--
`(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 901(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 title, and
`(C) elects, in such manner as the Secretary prescribes, at any time
after the date of the enactment of this title and before the date which is
2 years after the date of the enactment of this title, to avail itself of
the relief provided under this title.
`(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 title--
`(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 title
(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 title--
`(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 title, 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 913 for participation
in the retiree benefits program, and
`(B) the qualified steel company elects to avail itself of the relief
provided under this title on or after the date of the determination under
subparagraph (A).
`(e) QUALIFIED BANKRUPTCY TRANSFER- For purposes of this title, 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 30 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.
`(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 title are met with respect to such event and that the
asset transfer and contribution requirements of section 911 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. 913. ELIGIBILITY AND CERTIFICATION.
`(1) IN GENERAL- Any individual who is a retiree of a qualified steel
company with respect to which the Secretary has certified under section 912
that a qualifying event has occurred shall be treated as an eligible retiree
for purposes of this title if--
`(A) the individual was receiving steel retiree benefits under an
employee benefit plan described in section 901(a)(2)(A) as of the date of
the qualifying event, or
`(B) the individual was eligible to receive such benefits on such date
but was not receiving such benefits because the plan ceased 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 title if the individual is the spouse,
surviving spouse, or dependent of an eligible retiree (or an individual who
would have been an eligible retiree but for the individual's death before the
date of the qualifying event).
`(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
title 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.
`PART III--PROGRAM BENEFITS
`Sec. 921. Program benefits.
`SEC. 921. PROGRAM BENEFITS.
`(a) GENERAL RULE- Each eligible retiree and eligible beneficiary who is
certified for participation in the retiree benefits program shall be
entitled--
`(1) to receive health care benefits coverage described in subsection
(b), and
`(2) in the case of an eligible retiree, payment of $5,000 death
benefits coverage to the beneficiary of the retiree upon the retiree's
death.
`(b) HEALTH CARE BENEFITS COVERAGE-
`(1) IN GENERAL- The Board of Trustees of the Trust Fund shall establish
health care benefits coverage under which eligible retirees and
beneficiaries are provided benefits for health care items and services that
are substantially the same as the benefits 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. In providing the benefits under
such program, the secondary payer provisions and the provisions relating to
benefits provided when an individual is eligible for benefits under the
medicare program under title XVIII of the Social Security Act that are
applicable under such Plan shall apply in the same manner as such provisions
apply to Federal employees and annuitants under such Plan.
`(2) 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. The Board of
Trustees may use the authority under this subsection to establish preferred
provider organizations or other alternative delivery systems.
`(3) PREMIUMS, DEDUCTIBLES, AND COST SHARING- The Board of Trustees of
the Trust Fund shall establish premiums, deductibles, and cost sharing for
eligible retirees and beneficiaries provided health care benefits coverage
under paragraph (1) which are substantially the same as those required under
the Blue Cross/Blue Shield Standard Plan described in paragraph (1).
`Subtitle C--Steel Industry Legacy Relief Trust Fund
`SEC. 931. 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 this Act,
`(B) amounts received in the Treasury from asset transfers and
contributions under section 911,
`(C) amounts credited to the Trust Fund under section 9602(b) of the
Internal Revenue Code of 1986, 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 title, and
`(2) incurred by the Secretary and the Board of Trustees in the
administration of this title.
`(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 title--
`(i) are conducting activities described in subparagraph (A) or (B)
of section 901(b)(1), and
`(ii) have the largest number of retirees, and
`(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 INVESTMENT OF ASSETS- Sections 9601 and 9602(b) of the
Internal Revenue Code of 1986 shall apply to the Trust Fund.'
END