To amend the Emergency Steel Loan Guarantee Act of 1999 to prohibit steel companies receiving loan guarantees from investing the loan proceeds in foreign steel companies and using the loan proceeds to import steel products from foreign countries that are subject to certain trade remedies.

Summary: Amends the Emergency Steel Loan Guarantee Act of 1999 to prohibit qualified steel companies that have been issued loan guarantees under such Act from: (1) contributing any of the proceeds of such a loan to any facility located outside the United States that is engaged in manufacture of certain steel mill products (including ingots, slabs, or billets); or (2) using any such proceeds to import ingots, slabs, or billets produced in any country subject to specified trade remedies with respect to such products. Sets forth civil penalties for violations of the requirements of this Act.

SECTION 1. CONDITIONS ON LOAN GUARANTEES ISSUED TO STEEL COMPANIES.

    Section 101(h) of the Emergency Steel Loan Guarantee Act of 1999 
(Public Law 106-51) is amended by adding at the end the following:
            ``(5) Certain activities prohibited.--
                    ``(A) Prohibited activities.--Any qualified steel 
                company to which a loan guarantee is issued under this 
                section may not, during the period the guarantee is in 
                effect--
                            ``(i) contribute any of the proceeds of the 
                        loan that is guaranteed to any facility located 
                        outside the United States that is engaged in 
                        the production or manufacture of any product 
                        described in subsection (c)(3)(B) of this 
                        section; or
                            ``(ii) use any of the proceeds of the loan 
                        that is guaranteed to import ingots, slabs, or 
                        billets produced in any country if that country 
                        is subject to trade remedies with respect to 
                        any product described in subsection (c)(3)(B) 
                        of this section.
                    ``(B) Penalties for violations.--(i) The Board 
                shall terminate any guarantee issued under this section 
                to a qualified steel company that violates the 
                provisions of subparagraph (A), and shall assess a 
                civil penalty of not more than $100,000 for each 
                violation.
                    ``(ii) Any civil penalty under clause (i) may be 
                imposed only after notice and opportunity for a hearing 
                on the record in accordance with sections 554 and 557 
                of title 5, United States Code.
                    ``(C) Definitions.--In this paragraph--
                            ``(i) a country is subject to trade 
                        remedies with respect to any product described 
                        in subsection (c)(3)(B) of this section if--
                                    ``(I) a countervailing duty order 
                                or an antidumping order under title VII 
                                of the Tariff Act of 1930 (19 U.S.C. 
                                1671 et seq.), or a finding under the 
                                Antidumping Act, 1921, is in effect on 
                                imports of any product described in 
                                subsection (c)(3)(B) of this section 
                                that is a product of that country;
                                    ``(II) the administering authority 
                                or the International Trade Commission 
                                is conducting an investigation or 
                                making a determination under subtitle 
                                A, B, or C of title VII of the Tariff 
                                Act of 1930 with respect to any product 
                                described in subsection (c)(3)(B) of 
                                this section that is a product of that 
                                country;
                                    ``(III) action taken by the 
                                President under chapter 1 of title II 
                                of the Trade Act of 1974 (19 U.S.C. 
                                2251 et seq.), under section 406 of 
                                that Act (19 U.S.C. 2436), under 
                                chapter 2 of title IV of that Act (19 
                                U.S.C. 2451 et seq.), or under part 1 
                                of subtitle A of title III of the North 
                                American Free Trade Agreement 
                                Implementation Act (19 U.S.C. 3351 et 
                                seq.), is in effect with respect to 
                                imports of any product described in 
                                subsection (c)(3)(B) of this section 
                                that is a product of that country;
                                    ``(IV) a proceeding is pending 
                                under chapter 1 of title II of the 
                                Trade Act of 1974 (19 U.S.C. 2251 et 
                                seq.), under section 406 of that Act 
                                (19 U.S.C. 2436), under chapter 2 of 
                                title IV of that Act (19 U.S.C. 2451 et 
                                seq.), or under part 1 of subtitle A of 
                                title III of the North American Free 
                                Trade Agreement Implementation Act (19 
                                U.S.C. 3351 et seq.), pursuant to a 
                                determination by the International 
                                Trade Commission of substantial injury 
                                that was made pursuant to the filing of 
                                a petition under section 202(a), 
                                406(a)(1), 421(b), or 422(b) of the 
                                Trade Act of 1974, or 302(a) of the 
                                North American Free Trade Agreement 
                                Implementation Act, with respect to any 
                                product described in subsection 
                                (c)(3)(B) of this section that is a 
                                product of that country; or
                                    ``(V) a proceeding is pending under 
                                chapter 1 of title II of the Trade Act 
                                of 1974, under section 406 of that Act 
                                (19 U.S.C. 2436), or under chapter 2 of 
                                title IV of that Act, other than 
                                pursuant to a petition, with respect to 
                                any product described in subsection 
                                (c)(3)(B) of this section that is a 
                                product of that country; and
                            ``(ii) the term `United States' includes 
                        any commonwealth, territory, or possession of 
                        the United States.''.

SEC. 2. EFFECTIVE DATE.

    The amendment made by section 1 applies to--
            (1) any loan guarantee issued on or after the date of the 
        enactment of this Act; and
            (2) any loan guarantee issued before such date of 
        enactment, but only to the extent of any proceeds of the loan 
        remaining on such date.