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                                                      PRINTER'S NO. 1363

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 991 Session of 2005


        INTRODUCED BY BOSCOLA, LAVALLE, BROWNE, COSTA, RAFFERTY,
           KITCHEN, RHOADES, KASUNIC, MUSTO, STOUT AND FONTANA,
           NOVEMBER 15, 2005

        REFERRED TO BANKING AND INSURANCE, NOVEMBER 15, 2005

                                     AN ACT

     1  Providing for health care assistance for certain steelworkers;
     2     establishing the Steelworker Health Care Assistance Retiree
     3     Board and the Steelworker Health Care Assistance Retiree
     4     Trust Fund; providing for issuance of bonds and for an annual
     5     transfer of funds; and making a repeal.

     6                         TABLE OF CONTENTS
     7  Section 1.  Short title.
     8  Section 2.  Declaration of policy.
     9  Section 3.  Definitions.
    10  Section 4.  Steelworker Health Care Assistance Retiree Board.
    11  Section 5.  Powers and duties of Steelworker Health Care
    12                 Assistance Retiree Board.
    13  Section 6.  Steelworker Health Care Assistance Retiree Program.
    14  Section 7.  Steelworker Health Care Assistance Retiree Trust
    15                 Fund.
    16  Section 8.  Authority to borrow.
    17  Section 9.  Bonds, issue, maturity, interest, etc.
    18  Section 10.  Sale of bonds.
    19  Section 11.  Refunding bonds.

     1  Section 12.  Registration of bonds.
     2  Section 13.  Transfer of funds.
     3  Section 14.  Repeal.
     4  Section 15.  Effective date.
     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7  Section 1.  Short title.
     8     This act shall be known and may be cited as the Steelworker
     9  Health Care Assistance Retiree Exemption Act.
    10  Section 2.  Declaration of policy.
    11     The General Assembly finds and declares as follows:
    12         (1)  That there exists a crisis in the steel industry
    13     caused by the collapse of the Russian and Asian domestic
    14     steel markets and the subsequent dumping of their steel in
    15     the United States, much of it in violation of Federal trade
    16     laws. The results are significant and are a link to the
    17     potential loss of our entire steel industry.
    18         (2)  Since January 1997, a total of 54,000 steelworker
    19     jobs have been lost.
    20         (3)  Thirty-five companies have filed for bankruptcy,
    21     representing approximately 30% of the country's steelmaking
    22     capacity.
    23         (4)  Companies posted operating losses of $1.3 billion
    24     during the first nine months of 2001.
    25         (5)  Steel prices have fallen to unprecedented levels and
    26     despite a slight recovery due to the Federal Government's
    27     section 201 tariff program are still below their 20-year
    28     average.
    29         (6)  Approximately 600,000 retirees and dependents rely
    30     on the domestic steel industry for health care benefits.
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     1         (7)  Pennsylvania steelworkers helped to build this
     2     country's economy, and the production of steel added greatly
     3     to our national defense and forged a strong sense of security
     4     in this Commonwealth.
     5         (8)  As of March 31, 2002, over 20,000 retired LTV
     6     Corporation retirees lost their health coverage due to the
     7     Voluntary Employees Beneficiary Association decision to not
     8     ensure claims.
     9         (9)  Bethlehem Steel has announced plans to terminate
    10     benefits for its retirees, 40,000 of whom are Pennsylvania
    11     residents.
    12         (10)  The loss of benefits makes the need for decisive
    13     action at the State level more urgent. Pennsylvania has a
    14     clear and compelling interest to aid this population of
    15     retirees.
    16  Section 3.  Definitions.
    17     The following words and phrases when used in this act shall
    18  have the meanings given to them in this section unless the
    19  context clearly indicates otherwise:
    20     "Board."  The Steelworker Health Care Assistance Retiree
    21  Board established under section 4 (relating to Steelworker
    22  Health Care Assistance Retiree Board).
    23     "Contractor."  The term as it is defined under section 2303
    24  of the act of May 17, 1921 (P.L.682, No.284), known as The
    25  Insurance Company Law of 1921.
    26     "Department."  The Department of Labor and Industry of the
    27  Commonwealth.
    28     "Eligible retiree."  A resident of this Commonwealth who is a
    29  retiree of a steel company that paid health care benefits
    30  administered by the Voluntary Employees Beneficiary Association,
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     1  expired as of March 31, 2002. The term shall also include the
     2  surviving spouse and any dependent of such retiree.
     3     "Fund."  The Steelworker Health Care Assistance Retiree Trust
     4  Fund established under section 7 (relating to Steelworker Health
     5  Care Assistance Retiree Trust Fund).
     6     "Medicare."  The Federal program established under Title
     7  XVIII of the Social Security Act (49 Stat. 620, 42 U.S.C. § 1395
     8  et seq.).
     9     "PACE."  The Pharmaceutical Assistance Contract for the
    10  Elderly program provided for in Chapter 5 of the act of August
    11  26, 1971 (P.L.351, No.91), known as the State Lottery Law.
    12     "PACENET."  The Pharmaceutical Assistance Contract for the
    13  Elderly Needs Enhancement Tier program provided for in Chapter 5
    14  of the act of August 26, 1971 (P.L.351, No.91), known as the
    15  State Lottery Law.
    16     "Program."  The Steelworker Health Care Assistance Retiree
    17  Program established under section 6 (relating to Steelworker
    18  Health Care Assistance Retiree Program).
    19  Section 4.  Steelworker Health Care Assistance Retiree Board.
    20     (a)  Establishment.--The Steelworker Health Care Assistance
    21  Retiree Board is established as a departmental board under the
    22  department.
    23     (b)  Membership.--The board shall consist of the following
    24  members:
    25         (1)  One member appointed by the Majority Leader of the
    26     Senate.
    27         (2)  One member appointed by the Minority Leader of the
    28     Senate.
    29         (3)  One member appointed by the Majority Leader of the
    30     House of Representatives.
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     1         (4)  One member appointed by the Minority Leader of the
     2     House of Representatives.
     3         (5)  The Secretary of Labor and Industry or his designee.
     4         (6)  The Insurance Commissioner or his designee.
     5         (7)  One member from the International United
     6     Steelworkers of America Union appointed by the Governor.
     7         (8)  One member appointed by the Governor.
     8         (9)  One member from the Steelworkers Organization of
     9     Active Retirees appointed by the Governor.
    10     (c)  Compensation.--Members of the board shall receive no
    11  compensation for their services but shall be reimbursed for
    12  their necessary expenses incurred while serving as board
    13  members.
    14     (d)  Vacancies.--A vacancy on the board shall be filled by
    15  the appointing authority for the balance of the term.
    16     (e)  Terms of members.--Members of the board shall serve
    17  terms of four years and until a successor is appointed and
    18  qualified. Members may serve only two consecutive full terms. A
    19  member of the board may be removed by the department or by a
    20  majority of the other board members for malfeasance in office,
    21  failure to attend regularly scheduled meetings or any cause that
    22  renders the member incapable of or unfit to discharge his
    23  duties.
    24     (f)  Meetings.--Meetings of the board shall be subject to 65
    25  Pa.C.S. Ch. 7 (relating to open meetings) and the act of June
    26  21, 1957 (P.L.390, No.212), referred to as the Right-to-Know
    27  Law. A quorum for a meeting shall be a majority of the total
    28  membership of the board. Any action of the board requires the
    29  affirmative vote of a majority of a quorum.
    30  Section 5.  Powers and duties of Steelworker Health Care
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     1                 Assistance Retiree Board.
     2     The board shall:
     3         (1)  Implement a health care benefits program pursuant to
     4     section 6 (relating to Steelworker Health Care Assistance
     5     Retiree Program).
     6         (2)  Administer the fund established under section 7
     7     (relating to Steelworker Health Care Assistance Retiree Trust
     8     Fund).
     9  Section 6.  Steelworker Health Care Assistance Retiree Program.
    10     (a)  Implementation.--The board shall implement the
    11  Steelworker Health Care Assistance Retiree Program to provide
    12  group health plans for eligible retirees.
    13     (b)  Structure.--The board shall model the structure of the
    14  program on the structure of the children's health insurance
    15  program under Article XXIII of the act of May 17, 1921 (P.L.682,
    16  No.284), known as The Insurance Company Law of 1921. The board
    17  shall structure the program so that it includes the following
    18  provisions:
    19         (1)  Eligible retirees who are eligible to receive
    20     Medicare must enroll or continue to be enrolled in a Medicare
    21     program. The program shall provide for the enrollment of the
    22     eligible retirees who are eligible to receive Medicare in a
    23     commercially available Medicare supplement plan. The program
    24     shall provide for the enrollment of eligible retirees who are
    25     eligible to receive Medicare in a commercially available
    26     prescription drug coverage plan to provide for prescription
    27     drugs not covered under PACE or PACENET. The board shall set
    28     the amount of monthly premiums to be paid by eligible
    29     retirees who are eligible to receive Medicare and the amount
    30     of copayment required for prescription drugs.
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     1         (2)  Eligible retirees who are not eligible for Medicare
     2     may enroll in a commercially available health care plan that
     3     offers a comprehensive benefit package and a commercially
     4     available prescription drug coverage plan with coverages and
     5     benefits similar to those they had or did receive from their
     6     prior employer. The board shall set the amount of monthly
     7     premiums to be paid by eligible retirees who are not eligible
     8     for Medicare and the amount of copayment required for
     9     prescription drugs. Any eligible retiree under this paragraph
    10     who subsequently becomes eligible for Medicare must satisfy
    11     the requirements of paragraph (1) and any other requirements
    12     set by the board.
    13         (3)  The board shall make every effort to ensure that
    14     administration costs are kept at a minimum. The board shall
    15     require contractors to follow the provisions of section
    16     2311(b)(2) of The Insurance Company Law of 1921.
    17         (4)  The board shall make every effort to ensure that
    18     contractors participate in the program.
    19     (c)  Comparable program.--If the Federal Government enacts a
    20  program providing benefits comparable to those contained in this
    21  act as determined by the Steelworker Health Care Assistance
    22  Retiree Board, then the program established by this act shall be
    23  discontinued.
    24     (d)  Modification of program.--If the Federal Government
    25  enacts a program which the Steelworkers Health Care Assistance
    26  Retiree Board determines not to be comparable to the program
    27  established by this act, the board may provide additional group
    28  health plan coverage and benefits which supplement any such
    29  program.
    30  Section 7.  Steelworker Health Care Assistance Retiree Trust
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     1                 Fund.
     2     (a)  Establishment.--The Steelworker Health Care Assistance
     3  Retiree Trust Fund is established in the State Treasury. The
     4  fund shall be administered by the board. All interest earned
     5  from the investment or deposit of moneys accumulated in the fund
     6  shall be deposited in the fund for the same use.
     7     (b)  Funds.--All moneys deposited into the fund shall be held
     8  in trust, shall not be considered general revenue of the
     9  Commonwealth and are hereby appropriated on a continuing basis
    10  to effectuate the purposes of this act as determined by the
    11  board.
    12     (c)  Source of fund.--The proceeds realized from the sale of
    13  bonds under this act shall be paid into the fund and are hereby
    14  specifically dedicated to the purpose of this act. The moneys
    15  shall be paid periodically by the State Treasurer to the board
    16  at such times and in such amounts as may be necessary to satisfy
    17  the purpose of this act.
    18  Section 8.  Authority to borrow.
    19     The issuing officials shall borrow, on the credit of the
    20  Commonwealth, such sum or sums of money not exceeding in the
    21  aggregate the sum of $225,000,000 as may be necessary to carry
    22  out the purposes of this act.
    23  Section 9.  Bonds, issue, maturity, interest, etc.
    24     (a)  Issuance.--As evidence of the indebtedness authorized in
    25  this act, general obligation bonds of the Commonwealth shall be
    26  issued for such total amount, in such forms, in such
    27  denominations and subject to such terms and conditions of issue,
    28  redemption and maturity, rate or rates of interest and time of
    29  payment of interest as the issuing officials shall direct,
    30  except that the latest stated maturity date shall not exceed 25
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     1  years from the date of the bond first issued for each such
     2  series.
     3     (b)  Signatures and seal.--All bonds issued under the
     4  authority of this act shall bear facsimile signatures of the
     5  issuing officials and a facsimile of the Great Seal of the
     6  Commonwealth and shall be countersigned by two duly authorized
     7  officers of the duly authorized loan and transfer agents of the
     8  Commonwealth.
     9     (c)  Full faith and credit.--All bonds issued in accordance
    10  with the provisions of this act shall be direct obligations of
    11  the Commonwealth, and the full faith and credit of the
    12  Commonwealth are hereby pledged for the payment of the interest
    13  thereon as the same shall become due and for the payment of the
    14  principal thereof at maturity. All bonds issued under the
    15  provisions of this act shall be exempt from taxation for State
    16  and local purposes. The principal of and interest on such bonds
    17  shall be payable in lawful money of the United States of
    18  America.
    19     (d)  Form.--Bonds issued under this act may be issued as
    20  coupon bonds or registered as to both principal and interest as
    21  the issuing officials may determine. If interest coupons are
    22  attached, they shall contain the facsimile signature of the
    23  State Treasurer.
    24     (e)  Amount.--The issuing officials shall provide for the
    25  amortization of the bonds issued under this act in substantial
    26  and regular amounts over the term of the debt.
    27     (f)  Preparation.--The issuing officials shall proceed to
    28  have the necessary bonds prepared and printed. The bonds, as
    29  soon as they are prepared and printed, shall be deposited with
    30  the duly authorized loan and transfer agent of the Commonwealth,
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     1  there to remain until sold in accordance with the provisions of
     2  this act.
     3  Section 10.  Sale of bonds.
     4     (a)  Offering for sale.--When bonds are issued under this
     5  act, they shall be offered for sale and shall be sold by the
     6  issuing officials to the highest and best bidder or bidders
     7  after due public advertisement, on such terms and conditions and
     8  upon such open competitive bidding as the issuing officials
     9  shall direct. The manner and character of advertisement and the
    10  times of advertising shall be prescribed by the issuing
    11  officials.
    12     (b)  Private sale.--Any portion of any bond issue offered
    13  under subsection (a) and not sold or subscribed for may be
    14  disposed of by private sale by the issuing officials, in such
    15  manner and at such prices as the Governor shall direct.
    16     (c)  Series.--When bonds are issued from time to time, the
    17  bonds of each issue shall constitute a separate series to be
    18  designated by the issuing officials or may be combined for sale
    19  as one series with other general obligation bonds of the
    20  Commonwealth.
    21  Section 11.  Refunding bonds.
    22     The issuing officials are hereby authorized to provide by
    23  resolution for the issuance of refunding bonds for the purpose
    24  of refunding any bonds issued under the provisions of this act
    25  and then outstanding, either by voluntary exchange with the
    26  holders of such outstanding bonds with accrued interest and any
    27  premium payable thereon, at maturity or at any call date. The
    28  issuance of refunding bonds, the maturities and other details
    29  thereof, the rights of the holders thereof and the duties of the
    30  issuing officials in respect to refunding bonds shall be
    20050S0991B1363                 - 10 -     

     1  governed by the provisions of this act, insofar as they may be
     2  applicable. Refunding bonds may be issued by the issuing
     3  officials to refund bonds originally issued or to refund bonds
     4  previously issued for refunding purposes.
     5  Section 12.  Registration of bonds.
     6     The Auditor General shall prepare the necessary registry book
     7  to be kept in the office of the duly authorized loan and
     8  transfer agent of the Commonwealth for the registration of any
     9  bonds, at the request of owners thereof, according to the terms
    10  and conditions of issue directed by the issuing officials. All
    11  bonds which are issued under this act without interest coupons
    12  attached shall be registered in the registry books kept by the
    13  duly authorized loan and transfer agent of the Commonwealth.
    14  Section 13.  Transfer of funds.
    15     The sum of $15,000,000 shall be transferred annually from the
    16  Health Endowment Account for Long-Term Hope established in
    17  section 303(b) of the act of June 26, 2001 (P.L.755, No.77),
    18  known as the Tobacco Settlement Act, to the Steelworker Health
    19  Care Assistance Retiree Trust Fund.
    20  Section 14.  Repeal.
    21     The act of June 26, 2001 (P.L.755, No.77), known as the
    22  Tobacco Settlement Act, is repealed insofar as it is
    23  inconsistent with this act.
    24  Section 15.  Effective date.
    25     This act shall take effect immediately.




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