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 pro-
ceeds 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 compa-
nies and using the loan proceeds to import steel products
from foreign countries that are subject to certain trade
remedies.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. CONDITIONS ON LOAN GUARANTEES ISSUED
TO STEEL COMPANIES.
Section 101(h) of the Emergency Steel Loan Guar-
antee Act of 1999 (Public Law 106-51) is amended by
adding at the end the following:
‘‘(5) CERTAIN ACTIVITIES PROHIBITED.—
‘‘(A) PROHIBITED ACTIVITIES.—Any quali-
fied 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 sub-
paragraph (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 rem-
edies 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 Commis-
sion 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 prod-
uct described in subsection (c)(3)(B)
of this section that is a product of
that country;
‘‘(III) action taken by the Presi-
dent 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 Implementa-
tion 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 Implementa-
tion Act (19 U.S.C. 3351 et seq.),
pursuant to a determination by the
International Trade Commission of
substantial injury that was made pur-
suant 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 de-
scribed in subsection (c)(3)(B) of this
section that is a product of that coun-
try; 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.
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