THIS SEARCH THIS DOCUMENT THIS CR ISSUE GO TO
Next Hit Forward Next Document New CR Search
Prev Hit Back Prev Document HomePage
Hit List Best Sections Daily Digest Help
Contents Display
This bill is supported by both the integrated steelmakers and by the steel unions, who understand what it will take to save the American steel industry. They know that legacy costs have been the major barrier to consolidation
[Page: S2844] GPO's PDF
But, make no mistake, this steel legacy legislation will not happen without the active involvement of the President. This bill is fair, it is pro-competition, and there is a broad consensus that legacy cost legislation like this is absolutely necessary if we are to preserve integrated steelmaking in the United States, as well as the communities and businesses that depend on those facilities. But realistically, a program like this is only going to be enacted with the strong support and active engagement of the President.
The President's announcement of his decision on Section 201 tariffs last month was an encouraging sign that the President was committed to the preservation of the American steel industry, and his recognition that, if equipped with the right tools and competing in a fair market, the domestic steel industry can regain its former role as the world's leader. I surely hope so. But I know that without President Bush's support for a legacy cost bill, the Section 201 tariffs he announced last month will not be enough, and we will witness the erosion of a vital national asset, the American steel industry.
I appeal to the President to maintain his personal interest in the well-being of our steel industry. It is vital to our nation's economy and to our defense capability. I encourage the President to lead on this issue because surely, in these times, without his support and quick involvement, we will not be able to get a bill through this Congress. I hope the Administration will work with us here in the Senate to pass a legacy cost bill that will ensure fairness for America's retired steelworkers and a competitive future for America's integrated steel industry. We need legacy cost legislation like that outlined in the bill I am submitting today, if we are to preserve the U.S. steel industry. I urge my colleagues to join me in supporting this bill.
I ask unanimous consent that the text of the bill be printed in the RECORD.
There being no objection, the bill was ordered to be printed in the RECORD, as follows:
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:
``SUBTITLE A. Definitions.
``SUBTITLE B. Steel Industry Retiree Benefits Protection Program.
``SUBTITLE C. Steel Industry Legacy Relief Trust Fund.
``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.
``(B) RETIREE.--
``(i) IN GENERAL.--The term `retiree' means an individual who has met any years of service or disability requirements under an employee benefit plan described in subparagraph (A) which are necessary to receive steel retiree benefits under the plan.
``(ii) CERTAIN RETIREES INCLUDED.--An individual shall not fail to be treated as a retiree because the individual--
``(I) retired before January 1, 2000, or
``(II) was not employed at the steelmaking assets of a qualified steel company.
``(b) TERMS RELATING TO STEEL COMPANIES.--For purposes of this 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--
[Page: S2845] GPO's PDF
``(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.
``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.
``(a) IN GENERAL.--If--
``(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
``(ii) the sum of--
``(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
| <<< | >>> |
THIS SEARCH THIS DOCUMENT THIS CR ISSUE GO TO
Next Hit Forward Next Document New CR Search
Prev Hit Back Prev Document HomePage
Hit List Best Sections Daily Digest Help
Contents Display