I
107TH CONGRESS
2D SESSION
H. R. 4646
To remedy certain effects of injurious steel imports by protecting benefits
of steel industry retirees and encouraging the strengthening of the Amer-
ican steel industry.
IN THE HOUSE OF REPRESENTATIVES
MAY 2, 2002
Mr. DINGELL (for himself, Mr. VISCLOSKY, Mr. LAHOOD, Mr. PHELPS, Mr.
BROWN of Ohio, Mr. GEPHARDT, Mr. MURTHA, Mr. ROSS, Mr. SAWYER,
Mr. QUINN, Mr. HOLDEN, Mr. CARDIN, Mr. STUPAK, Mr. KUCINICH,
Mrs. JONES of Ohio, Mr. STRICKLAND, Mr. LEVIN, Mr. MATSUI, Mr.
GEORGE MILLER of California, Mr. OBERSTAR, Mr. DOYLE, Mr. COYNE,
Mr. CONYERS, Ms. PELOSI, Mr. FROST, Mr. BONIOR, Mr. SHIMKUS, Ms.
KAPTUR, Mrs. LOWEY, Ms. DELAURO, Mr. LAFALCE, Mr. SERRANO, Mr.
HORN, Mr. CLYBURN, Mr. OLVER, Mrs. MEEK of Florida, Mr. EDWARDS,
Mr. KENNEDY of Rhode Island, Mr. HINCHEY, Ms. ROYBAL-ALLARD,
Mr. JACKSON of Illinois, Ms. KILPATRICK, Ms. RIVERS, Mr. FATTAH, Mr.
LIPINSKI, Mr. KLECZKA, Mr. RAHALL, Mr. MASCARA, Mr. BLAGOJEVICH,
Mr. PALLONE, Mr. LYNCH, Ms. BROWN of Florida, Mr. HILLIARD, Mr.
COSTELLO, Mr. GREEN of Texas, Mr. MCNULTY, Ms. CARSON of Indi-
ana, Mr. SANDERS, Mr. BARCIA, Mr. TOWNS, Mr. SANDLIN, Mr. DAVIS
of Illinois, Mr. RUSH, Mr. MATHESON, Ms. LEE, Mr. CARSON of Okla-
homa, Mr. KILDEE, Mr. CLAY, Mr. GORDON, Ms. DEGETTE, Mr.
CUMMINGS, Mr. BOSWELL, Mr. REYES, Ms. BERKLEY, Mr. WEINER, Mr.
LANTOS, Mr. MOORE, Mrs. MCCARTHY of New York, Ms. MILLENDER-
MCDONALD, Ms. SLAUGHTER, Mr. HOLT, Mr. MALONEY of Connecticut,
Mr. MCGOVERN, Mr. BISHOP, Mr. ENGEL, Mr. EVANS, Mr. FILNER, Mr.
UDALL of New Mexico, Mr. RODRIGUEZ, Ms. MCKINNEY, Mr. HOEFFEL,
Mr. BACA, Mr. ABERCROMBIE, Mr. NADLER, Mr. GUTIERREZ, Mr.
WYNN, and Mr. PAYNE) introduced the following bill; which was referred
to the Committee on Energy and Commerce, and in addition to the Com-
mittee on Education and the Workforce, for a period to be subsequently
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned
A BILL
To remedy certain effects of injurious steel imports by pro-
tecting benefits of steel industry retirees and encouraging
the strengthening of the American steel industry.
Be it enacted by the Senate and House of Representa-
tives 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 Legacy Relief 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 steel-
workers 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, 33 American steel compa-
nies have been forced to seek bankruptcy pro-
tection, over 45,000 steelworkers have lost their
jobs, and over 100,000 steel retirees have suf-
fered a complete cutoff of vital medical 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 re-
tiree medical insurance.
(E) Recent steel imports have pushed steel
prices to such record lows that surviving Amer-
ican steelmakers face imminent financial col-
lapse, and these firms employ over 185,000
workers in family-supporting jobs and provide
crucial medical coverage to hundreds of thou-
sands of retirees and beneficiaries.
(F) As American steel companies continue
to weaken or fail, a very different trend is un-
derway in other countries where governments
shoulder a substantial portion of retirement
costs and foreign steelmakers are now merging
into companies of unprecedented size and mar-
ket 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 obligations.
(2) PURPOSE.—It is the purpose of this Act to
ensure that—
(A) retired steelworkers receive health care
benefits coverage; and
(B) the American steel industry can con-
tinue to provide livelihoods to tens of thousands
of American workers, their families, and com-
munities through the receipt of assistance in
consolidating its position in world steel markets.
SEC. 2. DEFINITIONS.
(a) TERMS RELATING TO BENEFITS PROGRAM.—For
purposes of this Act:
(1) RETIREE BENEFITS PROGRAM.—The term
‘‘retiree benefits program’’ means the Steel Industry
Retiree Benefits Protection Program established
under this Act to provide medical benefits to eligible
retirees and beneficiaries.
(2) STEEL RETIREE BENEFITS.—
(A) IN GENERAL.—The term ‘‘steel retiree
benefits’’ means medical, surgical, or hospital
benefits, whether furnished through insurance
or otherwise, which are provided to retirees and
eligible beneficiaries in accordance with an em-
ployee benefit plan (within the meaning of sec-
tion 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 es-
tablished 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 Act:
(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 ‘‘quali-
fied steel company’’ includes any person which
on January 1, 2000, was engaged in the trans-
portation of any steel mill product solely or
principally for another person described in sub-
paragraph (A), but only if such person and
such other person are related persons.
(C) SUCCESSORS IN INTEREST.—The term
‘‘qualified steel company’’ includes any suc-
cessor in interest of a person described in sub-
paragraph (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 lo-
cated 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 ‘‘acquir-
ing 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 Act:
(1) RELATED PERSON.—The term ‘‘related per-
son’’ 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.
TITLE I—STEEL INDUSTRY RE-
TIREE 
BENEFITS 
PROTEC-
TION PROGRAM
Subtitle A—Establishment
SEC. 101. 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 accord-
ance with the provisions of this Act for the purpose of
providing medical benefits to eligible retirees and eligible
beneficiaries certified as participants in the program
under subtitle B.
Subtitle B—Relief and Assumption
of Liability, Eligibility, and Cer-
tification
SEC. 111. RELIEF AND ASSUMPTION OF LIABILITY.
(a) IN GENERAL.—If—
(1) the Secretary certifies under section 112
that there was a qualifying event with respect to a
qualified steel company,
(2) the asset transfer requirements of sub-
section (b) are met with respect to the qualifying
event, and
(3) the qualified steel company and any acquir-
ing company assumes their respective liability to
make any contributions required under subsection
(c),
then the United States shall assume liability for the provi-
sion of steel retiree benefits for each eligible retiree and
eligible beneficiary certified for participation in the retiree
benefits program under section 113 (and the qualified
steel company, any predecessor or successor, and any re-
lated 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 subtitle C.
(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 accord-
ance with rules prescribed by the Secretary, which,
under the terms of an applicable collective bar-
gaining 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 vol-
untary contributions, including voluntary contribu-
tions made pursuant to a voluntary employees bene-
ficiary association trust, which are in excess of the
contributions described in the preceding sentence.
(2) DETERMINATION.—The amount of the as-
sets to be transferred under paragraph (1) shall be
determined at the time of the certification under sec-
tion 112 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 sub-
section) 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 112 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 obliga-
tion 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 re-
spect to the steelmaking assets owned by such
company or person.
(B) AMOUNT OF LIABILITY.—
(i) IN
GENERAL.—The amount re-
quired to be paid under subparagraph (A)
for any year shall be equal to—
(I) $5 per ton of products de-
scribed in section 2(b)(1)(A)(i) and
(iii), and
(II) $0.30 per ton of products de-
scribed in section 2(b)(1)(A)(ii),
that are attributable to the steelmaking as-
sets 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 por-
tion of such amount applied to a liability
for any preceding year. If 2 or more per-
sons 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 per-
sons on the basis of their respective liabil-
ities or in such other manner as such per-
sons may agree.
(2) JOINT AND SEVERAL LIABILITY.—Any re-
lated person of any person liable for any payment
under this subsection shall be jointly and severally
liable for the payment.
(3) TIME
AND
MANNER
OF
PAYMENT.—The
Secretary shall establish the time and manner of any
payment required to be made under this subsection,
including the payment of interest.
SEC. 112. QUALIFYING EVENTS.
(a) IN GENERAL.—For purposes of this Act, the term
‘‘qualifying event’’ means any—
(1) qualified acquisition;
(2) qualified closing;
(3) qualified election; and
(4) qualified bankruptcy transfer.
(b) QUALIFIED ACQUISITION.—
(1) IN GENERAL.—For purposes of this Act,
the term ‘‘qualified acquisition’’ means any arm’s-
length transaction or series of related transactions—
(A) under which a person described in
paragraph (2) (whether or not a qualified steel
company) acquires by purchase, merger, stock
acquisition, or otherwise all or substantially all
of the steelmaking assets held by a qualified
steel company as of January 1, 2000; and
(B) which occur on and after January 1,
2000, and before the date which is 2 years after
the date of the enactment of this Act.
(2) PERSONS TO WHOM APPLICABLE.—A per-
son is described in this paragraph if—
(A) such person, or the ultimate parent in
such person’s controlled group (within the
meaning of section 52(a) of the Internal Rev-
enue Code of 1986) was incorporated under the
laws of any State as of January 1, 2000; or
(B) in any case in which such steelmaking
assets are acquired by a person not described in
subparagraph (A), such assets are acquired by
such person only after the qualified steel com-
pany whose assets are being acquired provides
public notice of its intention to sell or otherwise
transfer substantially all its steelmaking assets,
and a period of 6 months has transpired to pro-
vide to all persons who are likely to have a sub-
stantial interest in making an offer for such as-
sets and who meet the requirements of subpara-
graph (A) a reasonable opportunity to make a
bid for such steelmaking assets.
(3) TREATMENT OF RELATED PERSONS.—The
term ‘‘qualified acquisition’’ does not include any ac-
quisition by a related person.
(c) QUALIFIED CLOSING.—For purposes of this Act:
(1) IN GENERAL.—The term ‘‘qualified closing’’
means—
(A) the permanent cessation on or after
January 1, 2000, and before January 1, 2004,
by a qualified steel company operating under
the protection of chapter 11 or 7 of title 11,
United States Code, of all activities described in
subparagraph (A) or (B) of paragraph (1) of
section 2(b); or
(B) the transfer on or after January 1,
2000, and before January 1, 2004, by a quali-
fied steel company operating under the protec-
tion of chapter 11 or 7 of title 11, United
States Code, of all or substantially all of its
steelmaking assets to 1 or more persons other
than related persons in an arms’-length trans-
action or series of related transactions which do
not constitute a qualified acquisition.
(2) COMPANIES IN IMMINENT DANGER OF CLO-
SURE.—A qualified closing of a qualified steel com-
pany operating under the protection of chapter 11 or
7 of title 11, United States Code, shall be treated
as having occurred if the company—
(A) meets the acquisition effort require-
ments of paragraph (3);
(B) establishes to the satisfaction of the
Secretary that—
(i) it is in imminent danger of becom-
ing a closed company; or
(ii) in the case of a company oper-
ating under protection of chapter 11 of