PRINTER'S NO. 2085
No. 1467 Session of 2002
INTRODUCED BY LAVALLE, KUKOVICH, WAGNER, COSTA, KITCHEN, LOGAN,
MUSTO, BODACK, BELL, STOUT, ORIE, TARTAGLIONE, CONTI, BOSCOLA
AND RHOADES, JUNE 12, 2002
REFERRED TO LABOR AND INDUSTRY, JUNE 12, 2002
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; making an
5 appropriation; and making a repeal.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Short title.
9 This act shall be known and may be cited as the Steelworker
10 Health Care Assistance Retiree Exemption Act (SHARE).
11 Section 2. Declaration of policy.
12 The General Assembly finds and declares as follows:
13 (1) That there exists a crisis in the steel industry
14 caused by the collapse of the Russian and Asian domestic
15 steel markets and the subsequent dumping of their steel in
16 the United States, much of it in violation of Federal trade
17 laws. The results are significant and are a link to the
18 potential loss of our entire steel industry.
19 (2) Since January 1998, a total of 46,700 steelworker
1 jobs have been lost.
2 (3) Thirty-one companies have filed for bankruptcy,
3 representing 29% of the country's steelmaking capacity.
4 (4) Companies posted operating losses of $1.3 billion
5 during the first nine months of 2001.
6 (5) Steel prices have fallen to unprecedented levels.
7 (6) Approximately 600,000 retirees and dependents rely
8 on the domestic steel industry for health care benefits.
9 (7) Pennsylvania steelworkers helped to build this
10 country's economy, and the production of steel added greatly
11 to our national defense and forged a strong sense of security
12 in this Commonwealth.
13 (8) It has been announced that the Voluntary Employees
14 Beneficiary Association that paid part of retirees' health
15 care and insurance will not ensure claims past March 31,
16 2002. This announcement makes the need for decisive action at
17 the State level more urgent. Pennsylvania has a clear and
18 compelling interest to aid this population of retirees.
19 Section 3. Definitions.
20 The following words and phrases when used in this act shall
21 have the meanings given to them in this section unless the
22 context clearly indicates otherwise:
23 "Board." The Steelworker Health Care Assistance Retiree
24 Board established under section 4.
25 "Contractor." The term as it is defined under section 2303
26 of the act of May 17, 1921 (P.L.682, No.284), known as The
27 Insurance Company Law of 1921.
28 "Department." The Department of Labor and Industry of the
29 Commonwealth.
30 "Eligible retirees." Any resident of the Commonwealth who is
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1 a retiree of a steel company whose company paid health care
2 benefits administered by the Voluntary Employees Beneficiary
3 Association, which benefits expire as of March 31, 2002. The
4 term shall also include the surviving spouse or dependents of
5 any eligible retiree.
6 "Fund." The Steelworker Health Care Assistance Retiree Trust
7 Fund established under section 7.
8 "Medicare." The Federal program established under Title
9 XVIII of the Social Security Act (49 Stat. 620, 42 U.S.C. § 1395
10 et seq.).
11 "PACE." The Pharmaceutical Assistance Contract for the
12 Elderly program provided for in Chapter 5 of the act of August
13 26, 1971 (P.L.351, No.91), known as the State Lottery Law.
14 "PACENET." The Pharmaceutical Assistance Contract for the
15 Elderly Needs Enhancement Tier program provided for in Chapter 5
16 of the act of August 26, 1971 (P.L.351, No.91), known as the
17 State Lottery Law.
18 "Program." The Steelworker Health Care Assistance Retiree
19 Program established under section 6.
20 Section 4. Steelworker Health Care Assistance Retiree Board.
21 (a) Establishment.--There is hereby established the
22 Steelworker Health Care Assistance Retiree Board as a
23 departmental board under the department.
24 (b) Membership.--The board shall consist of the following
25 members:
26 (1) One member appointed by the Majority Leader of the
27 Senate.
28 (2) One member appointed by the Minority Leader of the
29 Senate.
30 (3) One member appointed by the Majority Leader of the
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1 House of Representatives.
2 (4) One member appointed by the Minority Leader of the
3 House of Representatives.
4 (5) The Secretary of Labor and Industry or his designee.
5 (6) The Secretary of Insurance or his designee.
6 (7) One member from the International United
7 Steelworkers of America Union appointed by the Governor.
8 (8) One member appointed by the Governor.
9 (9) One member from the Steelworkers Organization of
10 Active Retirees appointed by the Governor.
11 (c) Compensation.--Members of the board shall receive no
12 compensation for their services but shall be reimbursed for
13 their necessary expenses incurred while serving as board
14 members.
15 (d) Vacancies.--A vacancy on the board shall be filled by
16 the appointing authority for the balance of the term.
17 (e) Terms of members.--Members of the board shall serve
18 terms of four years and until a successor is appointed and
19 qualified. Members may serve only two consecutive full terms.
20 Any member of the board may be removed by the department or by a
21 majority of the other board members for malfeasance in office,
22 failure to attend regularly scheduled meetings or any cause that
23 renders the member incapable of or unfit to discharge his
24 duties.
25 (f) Meetings.--Meetings of the board shall be subject to 65
26 Pa.C.S. Ch. 7 (relating to open meetings) and the act of June
27 21, 1957 (P.L.390, No.212), referred to as the Right-to-Know
28 Law. A quorum for a meeting shall be a majority of the total
29 membership of the board. Any action of the board requires the
30 affirmative vote of a majority of a quorum.
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1 Section 5. Powers and duties of Steelworker Health Care
2 Assistance Retiree Board.
3 It should be the duty of the board and the board shall have
4 the power to:
5 (1) Implement a health care benefits program pursuant to
6 section 6.
7 (2) Administer the fund established under section 7.
8 Section 6. Steelworker Health Care Assistance Retiree Program.
9 (a) Implementation.--The board shall implement the
10 Steelworker Health Care Assistance Retiree Program to provide
11 group health plans for eligible retirees.
12 (b) Structure.--The board shall model the structure of the
13 program on the structure of the children's health insurance
14 program under Article XXIII of the act of May 17, 1921 (P.L.682,
15 No.284), known as The Insurance Company Law of 1921. The board
16 shall structure the program so that it includes the following
17 provisions:
18 (1) Eligible retirees who are eligible to receive
19 Medicare shall enroll or continue to be enrolled in a
20 Medicare program. The program shall provide for the
21 enrollment of the eligible retirees who are eligible to
22 receive Medicare in a commercially available Medicare
23 supplement plan. Additionally, the program shall provide for
24 the enrollment of eligible retirees who are eligible to
25 receive Medicare in a commercially available prescription
26 drug coverage plan to provide for prescription drugs not
27 covered under PACE or PACENET. The board shall set the amount
28 of monthly premiums to be paid by eligible retirees who are
29 eligible to receive Medicare and the amount of copayment
30 required for prescription drugs.
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1 (2) Eligible retirees who are not eligible for Medicare
2 shall be provided enrollment in a commercially available
3 health care plan that offers a comprehensive benefit package
4 and a commercially available prescription drug coverage plan
5 with coverages and benefits similar to those they had or did
6 receive from their prior employer. The board shall set the
7 amount of monthly premiums to be paid by eligible retirees
8 who are not eligible for Medicare and the amount of copayment
9 required for prescription drugs. Any eligible retiree under
10 this paragraph who subsequently becomes eligible for Medicare
11 shall be required to meet the requirements of paragraph (1)
12 and any other requirements 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 as
18 many types of the various entities listed under the
19 definition of contractor participate in the program.
20 (c) Comparable program.--If the Federal Government enacts a
21 program providing benefits comparable to those contained in this
22 act as determined by the Steelworker Health Care Assistance
23 Retiree Board, then the program established by this act shall be
24 discontinued.
25 (d) Modification of program.--If the Federal Government
26 enacts a program which the Steelworkers Health Care Assistance
27 Retiree Board determines not to be comparable to the program
28 established by this act, the board shall have the power to
29 provide additional group health plan coverage and benefits which
30 supplement any such program.
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1 Section 7. Steelworker Health Care Assistance Retiree Trust
2 Fund.
3 (a) Establishment.--There is hereby established a separate
4 account in the State Treasury to be known as the Steelworker
5 Health Care Assistance Retiree Trust Fund. The fund shall be
6 administered by the board. All interest earned from the
7 investment or deposit of moneys accumulated in the fund shall be
8 deposited in the fund for the same use.
9 (b) Funds.--All moneys deposited into the fund shall be held
10 in trust and shall not be considered general revenue of the
11 Commonwealth but shall be used only to effectuate the purposes
12 of this act as determined by the board.
13 (c) Source of fund.--The proceeds realized from the sale of
14 bonds under this act shall be paid into the fund and are hereby
15 specifically dedicated to the purpose of this act. The moneys
16 shall be paid periodically by the State Treasurer to the board
17 at such times and in such amounts as may be necessary to satisfy
18 the purpose of this act.
19 Section 8. Authority to borrow.
20 The issuing officials are hereby authorized and directed to
21 borrow, on the credit of the Commonwealth, such sum or sums of
22 money not exceeding in the aggregate the sum of $225,000,000 as
23 may be necessary to carry out the purposes of this act.
24 Section 9. Bonds, issue, maturity, interest, etc.
25 (a) Issuance.--As evidence of the indebtedness authorized in
26 this act, general obligation bonds of the Commonwealth shall be
27 issued for such total amount, in such forms, in such
28 denominations and subject to such terms and conditions of issue,
29 redemption and maturity, rate or rates of interest and time of
30 payment of interest as the issuing officials shall direct,
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1 except that the latest stated maturity date shall not exceed 25
2 years from the date of the bond first issued for each such
3 series.
4 (b) Signatures and seal.--All bonds issued under the
5 authority of this act shall bear facsimile signatures of the
6 issuing officials and a facsimile of the Great Seal of the
7 Commonwealth and shall be countersigned by two duly authorized
8 officers of the duly authorized loan and transfer agents of the
9 Commonwealth.
10 (c) Full faith and credit.--All bonds issued in accordance
11 with the provisions of this act shall be direct obligations of
12 the Commonwealth, and the full faith and credit of the
13 Commonwealth are hereby pledged for the payment of the interest
14 thereon as the same shall become due and for the payment of the
15 principal thereof at maturity. All bonds issued under the
16 provisions of this act shall be exempt from taxation for State
17 and local purposes. The principal of and interest on such bonds
18 shall be payable in lawful money of the United States of
19 America.
20 (d) Form.--Bonds issued under this act may be issued as
21 coupon bonds or registered as to both principal and interest as
22 the issuing officials may determine. If interest coupons are
23 attached, they shall contain the facsimile signature of the
24 State Treasurer.
25 (e) Amount.--The issuing officials shall provide for the
26 amortization of the bonds issued under this act in substantial
27 and regular amounts over the term of the debt.
28 (f) Preparation.--The issuing officials shall proceed to
29 have the necessary bonds prepared and printed. The bonds, as
30 soon as they are prepared and printed, shall be deposited with
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1 the duly authorized loan and transfer agent of the Commonwealth,
2 there to remain until sold in accordance with the provisions of
3 this act.
4 Section 10. Sale of bonds.
5 (a) Offering for sale.--When bonds are issued under this
6 act, they shall be offered for sale and shall be sold by the
7 issuing officials to the highest and best bidder or bidders
8 after due public advertisement, on such terms and conditions and
9 upon such open competitive bidding as the issuing officials
10 shall direct. The manner and character of advertisement and the
11 times of advertising shall be prescribed by the issuing
12 officials.
13 (b) Private sale.--Any portion of any bond issue offered
14 under subsection (a) and not sold or subscribed for may be
15 disposed of by private sale by the issuing officials, in such
16 manner and at such prices as the Governor shall direct.
17 (c) Series.--When bonds are issued from time to time, the
18 bonds of each issue shall constitute a separate series to be
19 designated by the issuing officials or may be combined for sale
20 as one series with other general obligation bonds of the
21 Commonwealth.
22 Section 11. Refunding bonds.
23 The issuing officials are hereby authorized to provide by
24 resolution for the issuance of refunding bonds for the purpose
25 of refunding any bonds issued under the provisions of this act
26 and then outstanding, either by voluntary exchange with the
27 holders of such outstanding bonds with accrued interest and any
28 premium payable thereon, at maturity or at any call date. The
29 issuance of refunding bonds, the maturities and other details
30 thereof, the rights of the holders thereof and the duties of the
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1 issuing officials in respect to refunding bonds shall be
2 governed by the provisions of this act, insofar as they may be
3 applicable. Refunding bonds may be issued by the issuing
4 officials to refund bonds originally issued or to refund bonds
5 previously issued for refunding purposes.
6 Section 12. Registration of bonds.
7 The Auditor General shall prepare the necessary registry book
8 to be kept in the office of the duly authorized loan and
9 transfer agent of the Commonwealth for the registration of any
10 bonds, at the request of owners thereof, according to the terms
11 and conditions of issue directed by the issuing officials. All
12 bonds which are issued under this act without interest coupons
13 attached shall be registered in the registry books kept by the
14 duly authorized loan and transfer agent of the Commonwealth.
15 Section 13. Appropriation.
16 The sum of $15,000,000 is hereby appropriated annually from
17 the Health Endowment Account for Long-Term Hope established in
18 section 303(b) of the act of June 26, 2001 (P.L.755, No.77),
19 known as the Tobacco Settlement Act.
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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