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``(2) COMPANIES IN IMMINENT DANGER OF CLOSURE.--A qualified closing of a qualified steel
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``(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.
``(f) CERTIFICATION.--
``(1) IN GENERAL.--The Secretary shall certify a qualifying event with respect to a qualified steel company if the Secretary determines that the requirements of this 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.
``(a) RETIREES.--
``(1) IN GENERAL.--Any individual who is a retiree of a qualified steel company with respect to which the Secretary has certified under section 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).
``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,
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``(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.
``(d) BOARD OF TRUSTEES.--
``(1) IN GENERAL.--The Trust Fund and the retiree benefits program shall be administered by a Board of Trustees, consisting of--
``(A) 2 individuals designated by agreement of the 5 qualified steel companies which, as of the date of the enactment of this 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.''
Mr. SPECTER. Mr President, I have sought recognition at this time to comment briefly on legislation that I am pleased to cosponsor with my colleague, Senator Rockefeller. That legislation, the ``Steel Industry Retiree Benefits Protection Act of 2002,'' would set the Nation on a path of assuring the retirement health care benefits of the Nation's retired steelworkers and their dependants, and the survival of a domestic integrated steel industry. I crafted this bill jointly with Senator Rockefeller with extensive consultation by the integrated steel industry and representatives of the United Steelworkers of America. I am pleased to note that labor and management have joined in a common effort to resolve the near-intractable problems that face the industry today, and I thank them for that spirit of cooperation and compromise.
The reasons for this legislation are succinctly stated in the findings set forth in the preamble of the bill. The domestic steel industry has been forced to compete over the last 30 years in an international marketplace in which foreign governments have subsidized both domestic production and employee healthcare costs and, simultaneously, stimulated the creation and maintenance of excess world steelmaking capacity. During the 1980's and 1990's, the steel industry adapted, but literally hundreds of thousands of steel workers were forced into early retirement as the industry streamlined productions methods. Since 1997, the situation has worsened, due to the unfair practices of overseas producers and governments and a resultant glut of foreign imports, to the point that 32 American steel companies have had to resort to bankruptcy protection , causing 45,000 steelworkers to lose their jobs and over 100,000 steel industry retirees to lose vital medical insurance benefits. Record-low steel prices place remaining steel producers, and their workers and retirees, in an increasingly untenable position.
A clear consensus now exists that the only way a domestic integrated steel industry can survive is through consolidation. It is true that the ranks of U.S. integrated producers have been decimated; one need only drive through Pennsylvania to see ample evidence of that. But a domestic industry does indeed survive. It will continue to survive only if there is further consolidation and the emergence of a relatively few domestic companies with the muscle to compete in a global marketplace with subsidized foreign behemoths. But there is a significant impediment to such consolidation: the so-called ``legacy costs'' of domestic producers which might otherwise be acquired and consolidated into larger, more efficient U.S. operations.
To summarize, a relatively healthy domestic steel producer might find the acquisition, and the continued operation, of a weaker steel company's manufacturing operations to be quite attractive but for one major problem: such operations typically are owned by companies which are weighed down by the health care costs of prior generations of retirees, retirees who are relatively young due to the premature withdrawal of workers from the rolls due to downsizing in the 1980's and 1990's. Potential acquirers of such assets have ``legacy costs'' of their own to deal with; they cannot afford to assume those of their former competitors, a result that would be unavoidable were they to simply purchase and consolidate the assets of former competitors. If we want consolidation to happen, and it is unquestionably in the Nation's self-interest that it happen; few would dispute that the common defense requires a viable domestic steel industry, potential acquirers of these assets must gain relief from the ``legacy cost'' obligations that would otherwise run with the acquired assets.
My colleagues might ask: if an acquiring steel company is relieved of these obligations, who would take them on? The answer is this: a Federally-sponsored trust fund, financed with steel tariff receipts; funds previously placed in trust by acquired companies for retiree health and life insurance benefits; fees to be paid by acquiring companies; and, yes, as necessary to cover shortfalls, appropriations. To those who say the public cannot take on these obligations, I offer the following logic: when steel producers go under, as they will if we do not act, the public may very much face exposure to these obligations via the Medicare and Medicaid programs; taking them on before the companies go under will at least assure that the defense-critical steel industry survives. It is an unpleasant choice we face, but it is one which we must face: we may either assume ``legacy cost'' obligations now and save a vital industry; or we can wait and watch a vital industry die and face up to ``legacy costs'' later.
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