S 957 IS
107th CONGRESS
1st Session
S. 957
To provide certain safeguards with respect to the domestic steel
industry.
IN THE SENATE OF THE UNITED STATES
May 24, 2001
Mr. WELLSTONE (for himself, Mr. DAYTON, Mr. BYRD, and Ms. STABENOW)
introduced the following bill; which was read twice and referred to the
Committee on Finance
A BILL
To provide certain safeguards with respect to the domestic steel
industry.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Steel Revitalization Act of 2001'.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 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.
(1) IN GENERAL- Notwithstanding any other provision of law, within 60
days after the date of enactment of this Act, the President shall take the
necessary steps, by imposing quotas, tariff surcharges, negotiated
enforceable voluntary export restraint agreements, or other measures, on
imports of steel products to ensure that--
(A) the tonnage of iron ore, coke and coke products, semifinished
steel, and pig iron imported into the United States during any month does
not exceed the average tonnage of each such product that was imported
monthly into the United States during the 36-month period preceding July
1997; and
(B) in the case of any other steel product to which this section
applies, the share of domestic consumption of each such steel product in
the United States that is derived from imports during any month does not
exceed the average monthly share of domestic consumption of that steel
product in the United States that was derived from imports during any
month in the 36-month period preceding July 1997.
(2) DETERMINATION OF FUTURE CONSUMPTION- Determinations of the share of
future domestic consumption for purposes of subparagraph (B) shall be based
on projections made from the best available information.
(b) ENFORCEMENT AUTHORITY- Within 60 days after the date of enactment of
this Act, the Secretary of the Treasury, through the United States Customs
Service, and the Secretary of Commerce shall implement a program for
administering and enforcing the restraints on imports under subsection (a).
The Customs Service is authorized to refuse entry into the customs territory
of the United States of any steel products that exceed the allowable levels of
imports of such products.
(c) APPLICABILITY- This section shall apply to the following categories of
steel products: semifinished steel, stainless steel, plates, sheets and
strips, rods, wire and wire products, rail type products, bars, structural
shapes and units, pipes and tubes, iron ore, pig iron, and coke and coke
products.
(d) WAIVERS DURING PERIODS OF SHORT SUPPLY- The President may waive the
applicability of subsection (a), for periods of not more than 3 months each,
with respect to any product set forth in subsection (c) if--
(1) the President determines that the product cannot be supplied by the
domestic industry in commercial quantities in a timely manner;
(2) the President has obtained advice regarding that determination from
the appropriate advisory committee established under section 135 of the
Trade Act of 1974 (19 U.S.C. 2155) and the United States International Trade
Commission;
(3) the President has submitted to Congress a report that sets forth the
determination described in paragraph (1) and the reasons therefor, and the
advice obtained under paragraph (2); and
(4) a period of 30 calendar days has elapsed since the report was
submitted under paragraph (3).
(e) EXPIRATION- This section shall expire at the end of the 5-year period
beginning 60 days after the date of enactment of this Act.
SEC. 102. STEEL IMPORT NOTIFICATION AND MONITORING PROGRAM.
(a) IN GENERAL- Not later than 30 days after the date of enactment of this
Act, the Secretary of Commerce, in consultation with the Secretary of the
Treasury, shall establish and implement a steel import notification and
monitoring program. The program shall include a requirement that any person
importing a product classified under chapter 72 or 73 of the Harmonized Tariff
Schedule of the United States obtain an import notification certificate before
such products are entered into the United States.
(b) STEEL IMPORT NOTIFICATION CERTIFICATES-
(1) IN GENERAL- In order to obtain a steel import notification
certificate, an importer shall submit to the Secretary of Commerce an
application containing--
(A) the importer's name and address;
(B) the name and address of the supplier of the goods to be
imported;
(C) the name and address of the producer of the goods to be
imported;
(D) the country of origin of the goods;
(E) the country from which the goods are to be imported;
(F) the United States Customs port of entry where the goods will be
entered;
(G) the expected date of entry of the goods into the United
States;
(H) a description of the goods, including the classification of such
goods under the Harmonized Tariff Schedule of the United States;
(I) the quantity (in kilograms and net tons) of the goods to be
imported;
(J) the cost insurance freight (CIF) and free alongside ship (FAS)
values of the goods to be entered;
(K) whether the goods are being entered for consumption or for entry
into a bonded warehouse or foreign trade zone;
(L) a certification that the information furnished in the certificate
application is correct;
(M) the process used to produce the goods and the estimated amount of
toxic material emitted into the air, earth, and water as a result of that
process;
(N) wages and benefits paid to the workers producing the goods;
and
(O) any other information the Secretary of Commerce determines to be
necessary and appropriate.
(2) ENTRY INTO CUSTOMS TERRITORY- In the case of a product that is
initially entered into a bonded warehouse or foreign trade zone, a steel
import notification certificate shall be required before the product is
entered into the customs territory of the United States.
(3) ISSUANCE OF STEEL IMPORT NOTIFICATION CERTIFICATE- The Secretary of
Commerce shall issue a steel import notification certificate to any person
who files an application that meets the requirements of this section. Such
certificate shall be valid for a period of 30 days from the date of
issuance.
(c) STATISTICAL INFORMATION-
(1) IN GENERAL- The Secretary of Commerce shall compile and publish on a
weekly basis information described in paragraph (2).
(2) INFORMATION DESCRIBED- Information described in this paragraph is
information obtained from steel import notification certificate applications
concerning products classified under chapter 72 or 73 of the Harmonized
Tariff Schedule of the United States that are imported into the United
States and includes with respect to such imports the Harmonized Tariff
Schedule of the United States classification (to the tenth digit), the
country of origin, the port of entry, quantity, value of the products
imported, and whether the imports are entered for consumption or are entered
into a bonded warehouse or foreign trade zone. Such information shall also
be compiled in aggregate form and made publicly available by the Secretary
of Commerce on a weekly basis by public posting through an Internet website.
The information provided under this section shall be in addition to any
information otherwise required by law.
(d) FEES- The Secretary of Commerce may prescribe reasonable fees and
charges to defray the costs of carrying out the provisions of this section,
including a fee for issuing a certificate under this section.
(e) SINGLE PRODUCER AND EXPORTER COUNTRIES- Notwithstanding any other
provision of law, the Secretary of Commerce shall make publicly available all
information required to be released under subsection (c), including
information obtained regarding imports from a foreign producer or exporter
that is the only producer or exporter of goods subject to this section from a
foreign country.
(f) REGULATIONS- The Secretary of Commerce may prescribe such rules and
regulations relating to the steel import notification and monitoring program
as may be necessary to carry out this section.
TITLE II--LEGACY COST SHARING
SEC. 201. STEEL RETIREE HEALTH CARE BOARD.
(a) ESTABLISHMENT- There is established in the Department of Labor a Steel
Retiree Health Care Board.
(b) COMPOSITION- The Board shall be composed of 5 members appointed by the
Secretary of Labor, of whom--
(1) one shall be designated by the Secretary as Chairman;
(2) one shall be appointed after taking into consideration the
recommendations made by the Speaker of the House of Representatives and the
majority leader of the Senate;
(3) one shall be appointed after taking into consideration the
recommendations made by the minority leader of the House of Representatives
and the minority leader of the Senate;
(4) one shall represent the interests of steel and iron ore workers;
and
(5) one shall represent the interests of the steel and iron or
industry.
(c) MEMBERSHIP REQUIREMENTS- Members of the Board shall have substantial
experience, training, and expertise in matters relating to retiree health
benefits.
(d) LENGTH OF APPOINTMENTS-
(1) TERMS- A member of the Board shall be appointed for a term of 2
years.
(A) IN GENERAL- A vacancy on the Board shall be filled in the manner
in which the original appointment was made and shall be subject to any
conditions that applied with respect to the original appointment.
(B) COMPLETION OF TERM- An individual chosen to fill a vacancy shall
be appointed for the unexpired term of the member replaced.
(3) EXPIRATION- The term of any member shall not expire before the date
on which the member's successor takes office.
(e) DUTIES- The Board shall--
(1) administer the Health Care Benefit Costs Assistance Program
established under section 203;
(2) establish policies for the investment and management of the
Steelworker Retiree Health Care Trust Fund established under section 202
that shall
provide for prudent investments and low administrative costs; and
(3) review and approve the budget of the Board.
(f) ADMINISTRATIVE PROVISIONS-
(1) IN GENERAL- The Board may--
(A) adopt, alter, and use a seal;
(B) take such other actions as may be necessary to carry out the
functions of the Board.
(2) MEETINGS- The Board shall meet--
(A) at least semiannually; and
(B) at additional times at the call of the Chairman.
(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.
(1) IN GENERAL- Each member of the Board who is not an officer or
employee of the Federal Government shall be compensated at the daily rate of
basic pay for level V of the Executive Schedule for each day during which
such member is engaged in performing a function of the Board.
(2) EXPENSES- A member of the Board shall be paid travel, per diem, and
other necessary expenses under subchapter I of chapter 57 of title 5, United
States Code, while traveling away from such member's home or regular place
of business in the performance of the duties of the Board.
(3) SOURCE OF FUNDS- Payments authorized under this subsection shall be
paid from the Steelworker Retiree Health Care Trust Fund.
SEC. 202. STEELWORKER RETIREE HEALTH CARE TRUST FUND.
(a) CREATION OF TRUST FUND- There is established in the Treasury of the
United States a trust fund to be known as the `Steelworker Retiree Health Care
Trust Fund', consisting of such amounts as may be appropriated or credited to
the Steelworker Retiree Health Care Trust Fund as provided in this section.
(b) TRANSFER OF DESIGNATED AMOUNTS TO TRUST FUND- There is hereby
appropriated to the Steelworker Retiree Health Care Trust Fund amounts
equivalent to the taxes received in the Treasury under section 4191 of the
Internal Revenue Code of 1986 (relating to excise tax on steel).
(c) EXPENDITURES FROM TRUST FUND-
(1) HEALTH CARE BENEFIT COST PAYMENTS- The Secretary of the Treasury
shall make payments from the Trust Fund in accordance with section
203.
(2) ADMINISTRATIVE EXPENSES- Amounts in the Trust Fund shall be
available to pay the administrative expenses of the Secretary of the
Treasury directly attributable to carrying out this section and section 203
with respect to such Trust Fund.
SEC. 203. HEALTH CARE BENEFIT COSTS ASSISTANCE PROGRAM.
(a) ESTABLISHMENT OF PROGRAM- The Steel Retiree Health Care Board shall
establish by regulation a Health Care Benefit Costs Assistance Program under
which the Board shall provide for payments under this section from the balance
in the Steelworker Retiree Health Care Trust Fund to designated steelworker
group health plans to assist in the funding of qualified retiree health
benefits under such plans.
(b) DEFINITIONS- For purposes of this section--
(1) DESIGNATED STEELWORKER GROUP HEALTH PLAN-
(A) IN GENERAL- The term `designated steelworker group health plan'
means a group health plan--
(i) under which participants and beneficiaries include retired
steelworker participants or their beneficiaries, and
(ii) which is in effect on the date of enactment of this Act or
meets the requirements of subparagraph (B).
(B) PLANS MAINTAINED IN CONNECTION WITH SUBSEQUENT ACQUISITIONS- A
group health plan meets the requirements of this subparagraph
if--
(i) such plan is in effect as of the date of an affirmative
determination under section 401(b)(1) with respect to an acquisition,
and
(ii) a person who was engaged in, or resulted from, such acquisition
is obligated, under the terms of the plan as in effect immediately after
such determination, to make contributions to the plan.
(C) SUCCESSOR PLANS- Any group health plan described in subparagraph
(A)(i) which is a successor to a terminated designated steelworker group
health plan (as defined in subparagraph (A)) shall be treated as such
designated steelworker group health plan to the extent that it provides
benefits to individuals who were eligible steelworker participants or
their beneficiaries under the terminated plan, if--
(i) such benefits are at least equivalent to the benefits provided
by the terminated plan immediately before its termination,
or
(ii) in any case in which the benefits under the plan do not meet
the requirements of clause (i), any deviation from such requirements was
adopted by agreement with an authorized representative of the
individuals who were eligible steelworker participants or their
beneficiaries under the terminated plan.
(2) QUALIFIED RETIREE HEALTH BENEFIT- The term `qualified retiree health
benefit' means medical care which is provided under a designated steelworker
group health plan--
(A) to an eligible steelworker participant who retired under such plan
prior to the date of enactment of this Act (or to an eligible beneficiary
of such a participant), or
(B) in the case of a plan described in paragraph (1)(B), to an
eligible steelworker participant who retires under such plan during the
180-day period beginning with the applicable effective date (or to an
eligible beneficiary of such a participant).
(3) STEELWORKER PARTICIPANT- The term `steelworker participant' means a
participant who was, while employed as a participant in the plan, actively
engaged in the production of any steel product specified in section
101(c).
(4) APPLICABLE EFFECTIVE DATE- The term `applicable effective date'
means the date of enactment of this Act, except that, in the case of a plan
meeting the requirements of paragraph (1)(B), such term means the date of
the affirmative decision of the Secretary of Commerce referred to in
paragraph (1)(B).
(5) ELIGIBILITY- A steelworker participant under a designated
steelworker group health plan (or such a participant's beneficiary) for any
plan year is `eligible' for such plan year if such participant or
beneficiary was a participant or beneficiary under such plan as of the
applicable effective date and has remained a participant or beneficiary
under such plan without an intervening break in coverage. For purposes of
this paragraph, a suspension of benefits by reason of a case under chapter
11 of title 11, United States Code, or under any similar Federal law or law
of a State or political subdivision of a State shall not be treated as a
break in coverage.
(6) OTHER DEFINITIONS- Terms used in this section which are defined in
sections 3 and 733(a) of the Employee Retirement Income Security Act of 1974
(29 U.S.C. 1002 and 1191b(a)) shall have the meanings provided such terms in
such sections.
(c) APPLICATIONS- During the 180-day period following the applicable
effective date, a plan sponsor of a designated steelworker group health plan
providing qualified retiree health care benefits may apply to the Board for
contributions to the plan under the Health Care Benefit Costs Assistance
Program as reimbursement for benefit costs as provided under this section.
Such applications shall be accepted by the Board only if they are filed in
such form and manner as shall be prescribed in regulations of the Board.
(d) PAYMENT OF CONTRIBUTIONS-
(1) IN GENERAL- Upon receipt of an application with respect to a
designated steelworker group health plan filed with the Board in accordance
with subsection (c), the Board shall pay contributions to the plan from the
Trust Fund for each calendar year beginning after the 180-day period
described in subsection (c). Such contributions shall be allocated to plan
years which do not coincide with calendar years as provided in regulations
of the Board.
(2) AMOUNT OF CONTRIBUTIONS-
(A) IN GENERAL- Subject to subparagraph (F), total contributions paid
to a plan under this section for any calendar year shall be equal to 75
percent of the qualified expenditures of the plan made during such
calendar year.
(B) QUALIFIED EXPENDITURES- For purposes of subparagraph (A), the term
`qualified expenditures' of a plan for any calendar year means the costs
of items and services constituting qualified retiree health benefits paid
by the plan during such calendar year, employing the cost levels for such
items and services that prevailed as of the applicable effective
date.
(C) ACCOUNTING FOR QUALIFIED EXPENDITURES- The Board shall provide by
regulation for the payment of contributions under this section for any
calendar year in periodic installments, determined on the basis of
information currently received by the Board with respect to the qualified
expenditures of the plan and such estimates as the Board considers
appropriate. Adjustments shall be made in the amount of such installments
to the extent necessary to compensate for payments of prior installments
that were less than or greater than the correct amount.
(D) EFFECT OF SUBSEQUENT PLAN AMENDMENTS DISREGARDED-
(i) IN GENERAL- Subject to clause (ii), for purposes of determining
qualified expenditures under this paragraph, any amendment to the plan
taking effect after the applicable effective date shall be disregarded
to the extent that it increases benefit costs or adds new
benefits.
(ii) REDUCTIONS AND RESTORATIONS- Amendments to the plan taking
effect after the applicable effective date shall be taken into account
to the extent that such amendments--
(I) reduce benefit costs or eliminate existing benefits,
or
(II) increase benefit costs or add new benefits with the effect of
restoring levels of benefit costs to levels in effect prior to any
reduction described in subclause (I), or restoring benefits which were
eliminated as described in subclause (I).
(E) INCREASES IN CONSUMER PRICE INDEX TAKEN INTO ACCOUNT- For purposes
of determining qualified expenditures under this paragraph, increases
since the applicable effective date in the costs of items and services
constituting qualified retiree health benefits under a plan shall be
allowed under this section to the extent that such increases do not exceed
the annual rate of increase in the consumer price
index for all urban consumers (U.S. city average) issued by the Bureau of
Labor Statistics.
(F) ADJUSTMENT TO CONTRIBUTIONS IN THE EVENT OF TRUST FUND
INSUFFICIENCY- If the Board determines during any calendar
year that, as of any date during the following calendar year, the balance in
the Trust Fund will be insufficient to meet all contributions otherwise required
under this section to be made from the Trust Fund for such following calendar
year--
(i) the Board shall immediately publish such determination in the
Federal Register, and
(ii) the Board shall distribute the balance in the Trust Fund
available for contributions payable during such following calendar year
among all plans required to receive contributions for such following
calendar year in direct proportion to the number of eligible
participants and eligible beneficiaries under the plans as of the
beginning of such following calendar year.
Such distribution to the plans shall be deemed payment in full of
contributions required to be made to such plans under this section for
such calendar year. Determinations under this section with respect to any
calendar year shall be made irrespective of any distribution from the
Trust Fund made pursuant to this subparagraph for the prior calendar
year.
(e) REDUCTION OF REQUIRED CONTRIBUTIONS- If the Board determines during
any calendar year that, as of any date during the following calendar year, the
balance in the Trust Fund will be in excess of the amount necessary to meet
all contributions required under this section to be made from the Trust Fund
for such following calendar year--
(1) the Board shall immediately publish such determination in the
Federal Register, and
(2) the Board shall certify to the Secretary of the Treasury the amount
of such excess.
SEC. 204. EXCISE TAX ON STEEL.
(a) IN GENERAL- Chapter 32 of the Internal Revenue Code of 1986 (relating
to manufacturers excise taxes) is amended by inserting after subchapter D the
following new subchapter:
`Subchapter E--Steel
`Sec. 4191. Imposition of Tax.
`SEC. 4191. IMPOSITION OF TAX.
`(a) IMPOSITION OF TAX- There is hereby imposed a tax on steel sold by the
manufacturer, producer, or importer thereof.
`(b) DETERMINATION OF TAX-
`(1) IN GENERAL- The amount of tax imposed by subsection (a) shall be
the applicable percentage of the price at which the steel is sold.
`(2) APPLICABLE PERCENTAGE- For purposes of paragraph (1), the
applicable percentage for any taxable year shall be 1.5 percent reduced (but
not below zero) by the excess contribution percentage.
`(3) EXCESS CONTRIBUTION PERCENTAGE- For purposes of paragraph (2), the
excess contribution percentage for a calendar year is the number of
percentage points which the Secretary determines will, as of the last day of
such calendar year, reduce to zero the excess (if any) of the amount
necessary to meet all contributions required under section 203 of the Steel
Revitalization Act of 2001 to be made from the Steelworker Retiree Health
Care Trust Fund for such calendar year. The Secretary shall make such
determination on the basis of the certification made by the Steel Retiree
Health Care Board under section 203(e) of such Act.
`(c) LIABILITY FOR TAX- The tax imposed by subsection (a) shall be paid by
the manufacturer, producer, or importer.
`(d) DEFINITIONS AND SPECIAL RULES- For purposes of this subchapter--
`(1) STEEL- The term `steel' means steel in any of the following
categories of steel products: semifinished steel, stainless steel, plates,
sheets and strips, rods, wire and wire products, rail type products, bars,
structural shapes and units, pipes and tubes, iron ore, pig iron, and coke
and coke products.
`(2) IMPORTER- The term `importer' means the person entering the steel
for consumption or use.
`(3) UNITED STATES- The term `United States' includes any foreign trade
zone of the United States.'.
(b) EXEMPTIONS, ETC., NOT TO APPLY-
(1) Subsection (a) of section 4218 of such Code is amended by inserting
`and steel taxable under section 4191,' after `4121,'.
(2) Subsection (a) of section 4221 of such Code is amended by inserting
`4191,' after `4121,'.
(3) The third sentence of section 6416(b)(2) of such Code is amended by
striking `or 4121' and inserting `, 4121, and 4191'.
(c) CLERICAL AMENDMENT- The table of subchapters for chapter 32 of such
Code is amended by inserting after the item relating to subchapter D the
following new item:
`Subchapter E--Steel.'.
(d) EFFECTIVE DATE- The amendments made by this section shall apply to
sales occurring after 180 days after the date of enactment of this Act.
TITLE III--STEEL LOAN GUARANTEE PROGRAM
SEC. 301. MODIFICATION TO STEEL LOAN GUARANTEE PROGRAM.
(a) IN GENERAL- Section 101 of the Emergency Steel Loan Guarantee Act of
1999 (Public Law 106-51; 15 U.S.C. 1841 note) is amended as follows:
(1) DOLLAR LIMITS AND ADDITIONAL COSTS- Subsection (f) is
amended--
(A) in paragraph (2), by striking `1,000,000,000' and inserting
`$10,000,000,000;
(B) in paragraph (3), by striking `$250,000,000' and inserting
`$500,000,000';
(C) in paragraph (4), by striking `as soon as possible' and inserting
`within 45 days'; and
(D) in paragraph (5), by striking `$140,000,000' and inserting
`$1,800,000,000'.
(2) REQUIREMENTS FOR LOAN GUARANTEES- Subsection (g) is amended--
(A) in the matter preceding paragraph (1), by striking `a private bank
or investment company' and inserting `an institution';
(B) in paragraph (3), by striking `the loan' and inserting `the
portion of the loan';
(C) in paragraph (4), by striking `and' after the semicolon;
and
(D) by striking paragraph (5) and inserting the following:
`(5) the proceeds of the loan will not be used for the purpose of
enhancing the position or cash recovery of existing stockholders or
financial creditors beyond that which such stockholders and creditors would
have received without the loan; and
`(6) the company's business plan maximizes the retention of jobs and
capacity consistent with the long-term economic viability of the
company.'.
(3) TERMS AND CONDITIONS- Subsection (h) is amended--
(A) in paragraph (1), by striking `2005' and inserting
`2015';
(B) in paragraph (2), by striking the second sentence and inserting
the following: `The Board may give the unguaranteed portion of the loan
different security, lien priority, and payment preference than the
guaranteed portion of the loan.'; and
(C) by amending paragraph (4) to read as follows:
`(4) GUARANTEE LEVEL- Any loan guarantee issued under this section may
not exceed 95 percent of the amount of principal of the loan, plus the
amount of any unpaid interest on the loan.'.
(4) REPORTS TO CONGRESS- Subsection (i) is amended by striking `of
fiscal years 1999 and 2000, and annually thereafter,' and inserting `fiscal
year'.
(5) SALARIES AND ADMINISTRATIVE EXPENSES- Subsection (j) is
amended--
(A) by striking `5,000,000' and inserting `$10,000,000'; and
(B) by striking `, which may be transferred' and all that follows
through `Administration'.
(6) TERMINATION OF GUARANTEE AUTHORITY- Subsection (k) is amended by
striking `2001' and inserting `2003'.
(7) MONITORING, REPORTING, AND FORECLOSURE PROCEDURES- Subsection (l) is
amended by adding at the end the following: `All monitoring, reporting, and
foreclosure procedures established with respect to loan guarantees issued
under this section shall be consistent with customary practices in the
commercial banking industry. Minor or inadvertent reporting violations shall
not cause termination of any guarantee issued under this section.'.
(8) COMPOSITION OF GUARANTEE BOARD- Subsection (e) is amended by
striking paragraphs (1) through (3) and inserting the following:
`(1) the Secretary of Commerce, who shall serve as chairman,
`(2) the Secretary of Labor, and
`(3) the Secretary of the Treasury,
or their respective designees.'.
(9) DEFINITION OF STEEL COMPANIES- Subsection (c)(3)(B) is amended to
read as follows:
`(i) the production or manufacture of a product identified by the
American Iron and Steel Institute as a basic steel mill product,
including ingots, slab and billets, plates, flat-rolled steel, sections
and structural products, bars, rail type products, pipe and tube, and
wire rod;
`(ii) the production or manufacture of coke used in the production
of steel; or
`(iii) the mining of iron ore; and'.
(b) CONFORMING AMENDMENT- Section 101 of the Emergency Steel Loan
Guarantee Act of 1999 is further amended by striking subsection (m).
(c) APPLICABILITY- The amendments made by this section shall apply only
with respect to any guarantee issued on or after the date of enactment of this
Act.
TITLE IV--INCENTIVES FOR CONSOLIDATION
SEC. 401. GRANT PROGRAM FOR MERGED COMPANIES.
(a) ELIGIBLE PERSONS- Any person who acquires another person that produces
any of the steel products set forth in section 101(c) may, during the 1-year
period beginning on the effective date of the acquisition, apply to the
Secretary of Commerce for a grant under this section to defray the costs
necessary--
(1) to bring the entity resulting from the acquisition into compliance
with requirements imposed by laws to protect the environment; and
(2) to maintain such compliance.
(b) DETERMINATIONS BY THE SECRETARY OF COMMERCE-
(1) EMPLOYMENT AND PRODUCTION RETENTION- Upon receipt of an application
under subsection (a), the Secretary of Commerce shall determine whether or
not the acquisition set out in the application will promote the retention of
jobs and production capacity in the sector producing steel products
described in section 101(c). The Secretary may make an affirmative
determination under the preceding sentence only if the Secretary determines
that after the acquisition--
(A) the maximum number of workers of the acquiring person and the
person acquired that are engaged in the production of steel products set
out in section 101(c) on the day before the effective date of the
acquisition will be retained, consistent with the long-term
viability of the combined entity, except that such maximum number--
(i) must be at least 80 percent of the total number of such workers;
and
(ii) must include at least 50 percent of the number of such workers
of the acquired person; and
(B) at least 80 percent of the facilities of the acquiring person and
the person acquired that are used for the production of those steel
products on the day before the acquisition is completed will be
retained.
(2) ENVIRONMENTAL COSTS- If the Secretary of Commerce makes an
affirmative determination under paragraph (1), the Secretary shall provide a
grant to the applicant in an amount determined by the Secretary to cover the
costs incurred or to be incurred by the applicant--
(A) in complying with the requirements imposed by laws to protect the
environment; and
(B) in maintaining such compliance.
(c) AUTHORIZATION; AMOUNT OF GRANTS-
(1) AUTHORIZATION- There is authorized to be appropriated to carry out
this section $500,000,000.
(2) AMOUNT OF GRANTS- Not more than $100,000,000 may be provided to any
applicant under this section.
(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