I

107TH CONGRESS

1ST SESSION H. R. 851

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.

IN THE HOUSE OF REPRESENTATIVES

MARCH 1, 2001

Mr. STUPAK introduced the following bill; which was referred to the

Committee on Financial Services

A BILL

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. CONDITIONS ON LOAN GUARANTEES ISSUED

2 TO STEEL COMPANIES.

3 Section 101(h) of the Emergency Steel Loan Guar4 antee Act of 1999 (Public Law 106-51) is amended by

5 adding at the end the following:

6 ‘‘(5) CERTAIN ACTIVITIES PROHIBITED.—

7 ‘‘(A) PROHIBITED ACTIVITIES.—Any quali8 fied steel company to which a loan guarantee is

9 issued under this section may not, during the

10 period the guarantee is in effect—

11 ‘‘(i) contribute any of the proceeds of

12 the loan that is guaranteed to any facility

13 located outside the United States that is

14 engaged in the production or manufacture

15 of any product described in subsection

16 (c)(3)(B) of this section; or

17 ‘‘(ii) use any of the proceeds of the

18 loan that is guaranteed to import ingots,

19 slabs, or billets produced in any country if

20 that country is subject to trade remedies

21 with respect to any product described in

22 subsection (c)(3)(B) of this section.

23 ‘‘(B) PENALTIES FOR VIOLATIONS.—(i)

24 The Board shall terminate any guarantee

25 issued under this section to a qualified steel

26 company that violates the provisions of sub-
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1 paragraph (A), and shall assess a civil penalty

2 of not more than $100,000 for each violation.

3 ‘‘(ii) Any civil penalty under clause (i) may

4 be imposed only after notice and opportunity

5 for a hearing on the record in accordance with

6 sections 554 and 557 of title 5, United States

7 Code.

8 ‘‘(C) DEFINITIONS.—In this paragraph—

9 ‘‘(i) a country is subject to trade rem10 edies with respect to any product described

11 in subsection (c)(3)(B) of this section if—

12 ‘‘(I) a countervailing duty order

13 or an antidumping order under title

14 VII of the Tariff Act of 1930 (19

15 U.S.C. 1671 et seq.), or a finding

16 under the Antidumping Act, 1921, is

17 in effect on imports of any product

18 described in subsection (c)(3)(B) of

19 this section that is a product of that

20 country;

21 ‘‘(II) the administering authority

22 or the International Trade Commis23 sion is conducting an investigation or

24 making a determination under subtitle

25 A, B, or C of title VII of the Tariff
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1 Act of 1930 with respect to any prod2 uct described in subsection (c)(3)(B)

3 of this section that is a product of

4 that country;

5 ‘‘(III) action taken by the Presi6 dent under chapter 1 of title II of the

7 Trade Act of 1974 (19 U.S.C. 2251

8 et seq.), under section 406 of that Act

9 (19 U.S.C. 2436), under chapter 2 of

10 title IV of that Act (19 U.S.C. 2451

11 et seq.), or under part 1 of subtitle A

12 of title III of the North American

13 Free Trade Agreement Implementa14 tion Act (19 U.S.C. 3351 et seq.), is

15 in effect with respect to imports of

16 any product described in subsection

17 (c)(3)(B) of this section that is a

18 product of that country;

19 ‘‘(IV) a proceeding is pending

20 under chapter 1 of title II of the

21 Trade Act of 1974 (19 U.S.C. 2251

22 et seq.), under section 406 of that Act

23 (19 U.S.C. 2436), under chapter 2 of

24 title IV of that Act (19 U.S.C. 2451

25 et seq.), or under part 1 of subtitle A
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1 of title III of the North American

2 Free Trade Agreement Implementa3 tion Act (19 U.S.C. 3351 et seq.),

4 pursuant to a determination by the

5 International Trade Commission of

6 substantial injury that was made pur7 suant to the filing of a petition under

8 section 202(a), 406(a)(1), 421(b), or

9 422(b) of the Trade Act of 1974, or

10 302(a) of the North American Free

11 Trade Agreement Implementation

12 Act, with respect to any product de13 scribed in subsection (c)(3)(B) of this

14 section that is a product of that coun15 try; or

16 ‘‘(V) a proceeding is pending

17 under chapter 1 of title II of the

18 Trade Act of 1974, under section 406

19 of that Act (19 U.S.C. 2436), or

20 under chapter 2 of title IV of that

21 Act, other than pursuant to a petition,

22 with respect to any product described

23 in subsection (c)(3)(B) of this section

24 that is a product of that country; and
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1 ‘‘(ii) the term ‘United States’ includes

2 any commonwealth, territory, or possession

3 of the United States.’’.

4 SEC. 2. EFFECTIVE DATE.

5 The amendment made by section 1 applies to—

6 (1) any loan guarantee issued on or after the

7 date of the enactment of this Act; and

8 (2) any loan guarantee issued before such date

9 of enactment, but only to the extent of any proceeds

10 of the loan remaining on such date.

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