Establishes: (1) the Steel Retiree Health Care Board in the Department of Labor; (2) the Steelworker Retiree Health Care Trust Fund; and (3) the Health Care Benefit Costs Assistance Program.
Amends the Internal Revenue Code to impose an excise tax on steel sold by the manufacturer, producer, or importer (with proceeds to be deposited into the Steelworker Retiree Health Care Trust Fund).
Amends the Emergency Steel Loan Guarantee Act of 1999 to increase the aggregate amount of loans guaranteed and outstanding at any one time under Emergency Steel Guarantee Loan Program or with respect to a single qualified steel company.
Directs the Secretary to make a grant to help a merged steel product company comply with environmental requirements if such merger will promote the retention of at least 80 percent of the jobs of the steel workers and of the steel- producing facilities of the merging companies.
[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 957 Introduced in Senate (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. 1. Short title.
Sec. 2. Table of contents.
TITLE I--IMPORT RELIEF
Sec. 101. Reduction in volume of steel imports.
Sec. 102. Steel import notification and monitoring program.
TITLE II--LEGACY COST SHARING
Sec. 201. Steel Retiree Health Care Board.
Sec. 202. Steelworker Retiree Health Care Trust Fund.
Sec. 203. Health Care Benefit Costs Assistance Program.
Sec. 204. Excise tax on steel.
TITLE III--STEEL LOAN GUARANTEE PROGRAM
Sec. 301. Modification to steel loan guarantee program.
TITLE IV--INCENTIVES FOR CONSOLIDATION
Sec. 401. Grant program for merged companies.
TITLE I--IMPORT RELIEF
SEC. 101. REDUCTION IN VOLUME OF STEEL IMPORTS.
(a) Reduction.--
(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.
(2) Vacancies.--
(A) In general.--A vacancy on the Board shall be
filled in the manner in which the original appointment
was made and shall be subject to any conditions that
applied with respect to the original appointment.
(B) Completion of term.--An individual chosen to
fill a vacancy shall be appointed for the unexpired
term of the member replaced.
(3) Expiration.--The term of any member shall not expire
before the date on which the member's successor takes office.
(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.
(3) Exercise of powers.--
(A) In general.--The Board shall perform the
functions and exercise the powers of the Board on a
majority vote of a quorum of the Board. Three members
of the Board shall constitute a quorum for the
transaction of business.
(B) Vacancies.--A vacancy on the Board shall not
impair the authority of a quorum of the Board to
perform the functions and exercise the powers of the
Board.
(g) Compensation.--
(1) In general.--Each member of the Board who is not an
officer or employee of the Federal Government shall be
compensated at the daily rate of basic pay for level V of the
Executive Schedule for each day during which such member is
engaged in performing a function of the Board.
(2) Expenses.--A member of the Board shall be paid travel,
per diem, and other necessary expenses under subchapter I of
chapter 57 of title 5, United States Code, while traveling away
from such member's home or regular place of business in the
performance of the duties of the Board.
(3) Source of funds.--Payments authorized under this
subsection shall be paid from the Steelworker Retiree Health
Care Trust Fund.
SEC. 202. STEELWORKER RETIREE HEALTH CARE TRUST FUND.
(a) Creation of Trust Fund.--There is established in the Treasury
of the United States a trust fund to be known as the ``Steelworker
Retiree Health Care Trust Fund'', consisting of such amounts as may be
appropriated or credited to the Steelworker Retiree Health Care Trust
Fund as provided in this section.
(b) Transfer of Designated Amounts to Trust Fund.--There is hereby
appropriated to the Steelworker Retiree Health Care Trust Fund amounts
equivalent to the taxes received in the Treasury under section 4191 of
the Internal Revenue Code of 1986 (relating to excise tax on steel).
(c) Expenditures From Trust Fund.--
(1) Health care benefit cost payments.--The Secretary of
the Treasury shall make payments from the Trust Fund in
accordance with section 203.
(2) Administrative expenses.--Amounts in the Trust Fund
shall be available to pay the administrative expenses of the
Secretary of the Treasury directly attributable to carrying out
this section and section 203 with respect to such Trust Fund.
SEC. 203. HEALTH CARE BENEFIT COSTS ASSISTANCE PROGRAM.
(a) Establishment of Program.--The Steel Retiree Health Care Board
shall establish by regulation a Health Care Benefit Costs Assistance
Program under which the Board shall provide for payments under this
section from the balance in the Steelworker Retiree Health Care Trust
Fund to designated steelworker group health plans to assist in the
funding of qualified retiree health benefits under such plans.
(b) Definitions.--For purposes of this section--
(1) Designated steelworker group health plan.--
(A) In general.--The term ``designated steelworker
group health plan'' means a group health plan--
(i) under which participants and
beneficiaries include retired steelworker
participants or their beneficiaries, and
(ii) which is in effect on the date of
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:
``(B) is engaged in--
``(i) the production or manufacture of a
product identified by the American Iron and
Steel Institute as a basic steel mill product,
including ingots, slab and billets, plates,
flat-rolled steel, sections and structural
products, bars, rail type products, pipe and
tube, and wire rod;
``(ii) the production or manufacture of
coke used in the production of steel; or
``(iii) the mining of iron ore; and''.
(b) Conforming Amendment.--Section 101 of the Emergency Steel Loan
Guarantee Act of 1999 is further amended by striking subsection (m).
(c) Applicability.--The amendments made by this section shall apply
only with respect to any guarantee issued on or after the date of
enactment of this Act.
TITLE IV--INCENTIVES FOR CONSOLIDATION
SEC. 401. GRANT PROGRAM FOR MERGED COMPANIES.
(a) Eligible Persons.--Any person who acquires another person that
produces any of the steel products set forth in section 101(c) may,
during the 1-year period beginning on the effective date of the
acquisition, apply to the Secretary of Commerce for a grant under this
section to defray the costs necessary--
(1) to bring the entity resulting from the acquisition into
compliance with requirements imposed by laws to protect the
environment; and
(2) to maintain such compliance.
(b) Determinations by the Secretary of Commerce.--
(1) Employment and production retention.--Upon receipt of
an application under subsection (a), the Secretary of Commerce
shall determine whether or not the acquisition set out in the
application will promote the retention of jobs and production
capacity in the sector producing steel products described in
section 101(c). The Secretary may make an affirmative
determination under the preceding sentence only if the
Secretary determines that after the acquisition--
(A) the maximum number of workers of the acquiring
person and the person acquired that are engaged in the
production of steel products set out in section 101(c)
on the day before the effective date of the acquisition
will be retained, consistent with the long-
term viability of the combined entity, except that such maximum
number--
(i) must be at least 80 percent of the
total number of such workers; and
(ii) must include at least 50 percent of
the number of such workers of the acquired
person; and
(B) at least 80 percent of the facilities of the
acquiring person and the person acquired that are used
for the production of those steel products on the day
before the acquisition is completed will be retained.
(2) Environmental costs.--If the Secretary of Commerce
makes an affirmative determination under paragraph (1), the
Secretary shall provide a grant to the applicant in an amount
determined by the Secretary to cover the costs incurred or to
be incurred by the applicant--
(A) in complying with the requirements imposed by
laws to protect the environment; and
(B) in maintaining such compliance.
(c) Authorization; Amount of Grants.--
(1) Authorization.--There is authorized to be appropriated
to carry out this section $500,000,000.
(2) Amount of grants.--Not more than $100,000,000 may be
provided to any applicant under this section.
(d) Penalties.--
(1) Failure to achieve retention levels in first 5 years.--
In any case in which a person receives a grant under this
section and, at any time during the 5-year period after the
grant is awarded, the number of workers, or the production
capacity, described in paragraph (1) of subsection (b) with
respect to that applicant falls below the 80 percent level
described in subparagraph (A)(i) or (B) of that paragraph, the
applicant shall forfeit to the Secretary the dollar amount of
the grant, plus 20 percent of that amount.
(2) Failure to achieve retention levels after first 5
years.--In any case in which a person receives a grant under
this section and the number of workers, or the production
capacity, described in paragraph (1) of subsection (b) with
respect to that applicant falls below the 80 percent level
described in subparagraph (A)(i) or (B) of that paragraph--
(A) during the 6th year after the grant is awarded,
the applicant shall forfeit to the Secretary 50 percent
of the dollar amount of the grant, plus 20 percent of
that forfeited amount;
(B) during the 7th year after the grant is awarded,
the applicant shall forfeit to the Secretary 40 percent
of the dollar amount of the grant, plus 20 percent of
that forfeited amount;
(C) during the 8th year after the grant is awarded,
the applicant shall forfeit to the Secretary 30 percent
of the dollar amount of the grant, plus 20 percent of
that forfeited amount;
(D) during the 9th year after the grant is awarded,
the applicant shall forfeit to the Secretary 20 percent
of the dollar amount of the grant, plus 20 percent of
that forfeited amount; and
(E) during the 10th year after the grant is
awarded, the applicant shall forfeit to the Secretary
10 percent of the dollar amount of the grant, plus 20
percent of that forfeited amount.
(3) Court action.--In the event of the failure of a person
to forfeit any amount under paragraph (1) or (2), the Secretary
of Commerce may bring an action in the appropriate district
court against that person to collect that amount.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S5633-5634)
Read twice and referred to the Committee on Finance.
Sponsor introductory remarks on measure. (CR S5663-5664)
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