PRIA, Government Policy, Made Personal

Summary

Creates an Asbestos Trust Fund in the U.S. Treasury. The fund gets money from three kinds of receipts: loan repayments received on or after January 1, 1987 under section 4014, deposits from local school agencies under section 2647(a) of title 15, and money from judgments in suits under section 4017(a)(1). Those amounts are moved from the Treasury’s general fund to the Trust Fund at least once a month using the Treasury Secretary’s estimates, with later adjustments if the estimates were off. Money not needed for immediate spending is invested in U.S. interest‑bearing securities (bought at issue or at market price), may be sold, and any interest or sale proceeds are returned to the Trust Fund. Money in the Trust Fund can only be spent for the Asbestos Hazards Abatement Assistance Program under section 4014 and only as Congress approves in appropriation laws. Up to $25,000,000 may be provided to the Trust Fund as repayable advances for each of fiscal years 1987, 1988, 1989, and 1990. Those advances must be repaid, with interest, to the Treasury’s general fund when the Secretary determines the Trust Fund has enough money. The Secretary sets the interest rate to match current average market yields on comparable U.S. securities, compounded annually. The amendments take effect January 1, 1986.

Title 20, §4022

Education, Source: USLM XML via OLRC

(a)Creation of Trust Fund

There is established in the Treasury of the United States a trust fund to be known as the “Asbestos Trust Fund”, consisting of such amounts as may be transferred or credited to such Trust Fund as provided in this section.

(b)Transfers to Trust Fund

(1)Transfer

There are hereby transferred to the Asbestos Trust Fund amounts equivalent to—

(A)amounts received in the Treasury on or after January 1, 1987, as repayments of loans made under section 4014 of this title,

(B)amounts received as deposits from local educational agencies under section 2647(a) of title 15, and

(C)amounts received as proceeds from any judgment recovered in any suit brought pursuant to section 4017(a)(1) of this title.

(2)Monthly transfers

The amounts transferred by paragraph (1) shall be transferred at least monthly from the general fund of the Treasury to the Asbestos Trust Fund on the basis of estimates made by the Secretary of the Treasury of the amounts referred to in such paragraph. Adjustments shall be made in the amounts subsequently transferred to the extent prior estimates were more or less than the amounts required to be transferred.

(c)Management of Trust Fund

(1)Investment

(A)In general

The Secretary of the Treasury shall invest such portion of the Asbestos Trust Fund as is not, in his judgment, required to meet current withdrawals. Such investments may be made only in interest-bearing obligations of the United States and may be acquired—

(i)on original issue at the issue price, or

(ii)by purchase of outstanding obligations at the market price.

(B)Sale of obligations

Any obligation acquired by the Asbestos Trust Fund may be sold by the Secretary of the Treasury at the market price.

(C)Interest on certain proceeds

The interest on, and the proceeds from the sale or redemption of, any obligations held in the Asbestos Trust Fund shall be credited to and form a part of the Trust Fund.

(2)Repealed. Pub. L. 104–66, title I, § 1131(c), Dec. 21, 1995, 109 Stat. 725

(d)Expenditures from Asbestos Trust Fund

Amounts in the Asbestos Trust Fund shall be available, as provided by appropriation Acts, only for purposes of carrying out the Asbestos Hazards Abatement Assistance Program under section 4014 of this title.

(e)Authority to borrow

(1)In general

There are authorized to be appropriated to the Asbestos Trust Fund, as repayable advances, $25,000,000 for each of fiscal years 1987, 1988, 1989, and 1990.

(2)Repayment of advances

(A)In general

Advances made under this subsection shall be repaid, and interest on such advances shall be paid, to the general fund of the Treasury when the Secretary determines that moneys are available for such purposes in the Asbestos Trust Fund.

(B)Rate of interest

Interest on advances made under this subsection shall be at a rate determined by the Secretary (as of the close of the calendar month preceding the month in which the advance is made) to be equal to the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the anticipated period during which the advance will be outstanding and shall be compounded annually.

(f)Effective date

The amendments made by this section shall take effect on January 1, 1986.

Notes & Related Subsidiaries

Editorial Notes

Codification Section was enacted as part of the Asbestos Hazard Emergency Response Act of 1986, and not as part of the Asbestos School Hazard Abatement Act of 1984 which comprises this subchapter nor as part of the Education for Economic Security Act which comprises this chapter.

Amendments

1995—Subsec. (c)(2). Pub. L. 104–66 struck out heading and text of par. (2). Text read as follows: “It shall be the duty of the Secretary of the Treasury to hold the Asbestos Trust Fund and to report to the 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 5 fiscal years.” 1990—Subsec. (b)(1). Pub. L. 101–637, § 12(a), substituted a comma for “as in effect on

October 22, 1986, and” in subpar. (A) and “, and” for period at end of subpar. (B), and added subpar. (C). Subsec. (d). Pub. L. 101–637, § 12(b), struck out before period at end “as in effect on

October 22, 1986”.

§4022 Asbestos Trust Fund

Summary

Title 20, §4022

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata