I 

108TH CONGRESS 

1ST SESSION H. R. 629

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 

FEBRUARY 5, 2003

Mr. STUPAK (for himself and Mr. LATOURETTE) 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, 
2

•HR 629 IH 

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 (15 U.S.C. 1841 note) 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 iron ore 

19 pellets, ingots, slabs, or billets produced in 

20 any country if that country is subject to 

21 trade remedies with respect to any product 

22 described in subsection (c)(3)(B) of this 

23 section. 

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

25 The Board shall terminate any guarantee 

26 issued under this section to a qualified steel 
3

•HR 629 IH 

1 company that violates the provisions of sub2 paragraph (A), and shall assess a civil penalty 

3 of not more than $100,000 for each such viola4 tion. 

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

6 be imposed only after notice and opportunity 

7 for a hearing on the record in accordance with 

8 sections 554 and 557 of title 5, United States 

9 Code. 

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

11 ‘‘(i) a country is subject to trade rem12 edies with respect to any product described 

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

14 ‘‘(I) a countervailing duty order 

15 or an antidumping order under title 

16 VII of the Tariff Act of 1930 (19 

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

18 under the Antidumping Act, 1921, is 

19 in effect on imports of any product 

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

21 this section that is a product of that 

22 country; 

23 ‘‘(II) the administering authority 

24 or the International Trade Commis25 sion is conducting an investigation or 
4

•HR 629 IH 

1 making a determination under subtitle 

2 A, B, or C of title VII of the Tariff 

3 Act of 1930 with respect to any prod4 uct described in subsection (c)(3)(B) 

5 of this section that is a product of 

6 that country; 

7 ‘‘(III) action taken by the Presi8 dent under chapter 1 of title II of the 

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

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

11 (19 U.S.C. 2436), under chapter 2 of 

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

13 et seq.), under part 1 of subtitle A of 

14 title III of the North American Free 

15 Trade Agreement Implementation Act 

16 (19 U.S.C. 3351 et seq.), or under 

17 subtitle B of title II of the United 

18 States-Jordan Free Trade Area Im19 plementation Act (19 U.S.C. 2112 

20 note, is in effect with respect to im21 ports of any product described in sub22 section (c)(3)(B) of this section that 

23 is a product of that country; 

24 ‘‘(IV) a proceeding is pending 

25 under chapter 1 of title II of the 
5

•HR 629 IH 

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

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

3 (19 U.S.C. 2436), under chapter 2 of 

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

5 et seq.), under part 1 of subtitle A of 

6 title III of the North American Free 

7 Trade Agreement Implementation Act 

8 (19 U.S.C. 3351 et seq.), or under 

9 subtitle B of title II of the United 

10 States-Jordan Free Trade Area Im11 plementation Act (19 U.S.C. 2112 

12 note), pursuant to a determination by 

13 the International Trade Commission 

14 of substantial injury that was made 

15 pursuant to the filing of a petition 

16 under section 202(a), 406(a)(1), 

17 421(b), or 422(b) of the Trade Act of 

18 1974, 302(a) of the North American 

19 Free Trade Agreement Implementa20 tion Act, or section 211(a) of the 

21 United States-Jordan Free Trade 

22 Area Implementation Act, with re23 spect to any product described in sub24 section (c)(3)(B) of this section that 

25 is a product of that country; or 
6

•HR 629 IH 

1 ‘‘(V) a proceeding is pending 

2 under chapter 1 of title II of the 

3 Trade Act of 1974, under section 406 

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

5 under chapter 2 of title IV of that 

6 Act, other than pursuant to a petition, 

7 with respect to any product described 

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

9 that is a product of that country; and 

10 ‘‘(ii) the term ‘United States’ includes 

11 any commonwealth, territory, or possession 

12 of the United States.’’. 

13 SEC. 2. EFFECTIVE DATE. 

14 The amendment made by section 1 applies to—

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

16 date of the enactment of this Act; and 

17 (2) any loan guarantee issued before such date 

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

19 of the loan remaining on such date.

Æ