Emergency Steel Loan Guarantee Program

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Emergency Steel Loan Guarantee 
Program''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the United States steel industry has been severely 
        harmed by a record surge of more than 40,000,000 tons of steel 
        imports into the United States in 1998, caused by the world 
        financial crisis;
            (2) this surge in imports resulted in the loss of more than 
        10,000 steel worker jobs in 1998, and was the imminent cause of 
        3 bankruptcies by medium-sized steel companies, Acme Steel, 
        Laclede Steel, and Geneva Steel;
            (3) the crisis also forced almost all United States steel 
        companies into--
                    (A) reduced volume, lower prices, and financial 
                losses; and
                    (B) an inability to obtain credit for continued 
                operations and reinvestment in facilities;
            (4) the crisis also has affected the willingness of private 
        banks and investment institutions to make loans to the U.S. 
        steel industry for continued operation and reinvestment in 
        facilities;
            (5) these steel bankruptcies, job losses, and financial 
        losses are also having serious negative effects on the tax base 
        of cities, counties, and States, and on the essential health, 
        education, and municipal services that these government 
        entities provide to their citizens; and
            (6) a strong steel industry is necessary to the adequate 
        defense preparedness of the United States in order to have 
        sufficient steel available to build the ships, tanks, planes, 
        and armaments necessary for the national defense.

SEC. 3. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``Board'' means the Loan Guarantee Board 
        established under section 5;
            (2) the term ``Program'' means the Emergency Steel 
        Guaranteed Loan Program established under section 4; and
            (3) the term ``qualified steel company'' means any company 
        that--
                    (A) is incorporated under the laws of any State;
                    (B) is engaged in the production and manufacture of 
                a product defined by the American Iron and Steel 
                Institute as a basic steel mill product, including 
                ingots, slab and billets, plates, flat-rolled steel, 
                sections and structural products, bars, rail type 
                products, pipe and tube, and wire rod; and
                    (C) has experienced layoffs, production losses, or 
                financial losses since the beginning of the steel 
                import crisis, after January 1, 1998.

SEC. 4. ESTABLISHMENT OF EMERGENCY STEEL GUARANTEED LOAN PROGRAM.

    There is established the Emergency Steel Guaranteed Loan Program, 
to be administered by the Board, the purpose of which is to provide 
loan guarantees to qualified steel companies in accordance with this 
Act.

SEC. 5. LOAN GUARANTEE BOARD MEMBERSHIP.

    There is established a Loan Guarantee Board, which shall be 
composed of--
            (1) the Secretary of Commerce, who shall serve as Chairman 
        of the Board;
            (2) the Secretary of Labor; and
            (3) the Secretary of the Treasury.

SEC. 6. LOAN GUARANTEE PROGRAM.

    (a) Authority.--The Program may guarantee loans provided to 
qualified steel companies by private banking and investment 
institutions in accordance with the procedures, rules, and regulations 
established by the Board.
    (b) Total Guarantee Limit.--The aggregate amount of loans 
guaranteed and outstanding at any one time under this Act may not 
exceed $1,000,000,000.
    (c) Individual Guarantee Limit.--The aggregate amount of loans 
guaranteed under this Act with respect to a single qualified steel 
company may not exceed $250,000,000.
    (d) Minimum Guarantee Amount.--No single loan in an amount that is 
less than $25,000,000 may be guaranteed under this Act, except that the 
Board may, in exceptional circumstances, guarantee smaller loans.
    (e) Timelines.--The Board shall approve or deny each application 
for a guarantee under this Act as soon as possible after receipt of 
such application.
    (f) Additional Costs.--For the additional cost of the loans 
guaranteed under this section, including the costs of modifying the 
loans as defined in section 502 of the Congressional Budget Act of 1974 
(2 U.S.C. 661a), there is authorized to be appropriated $140,000,000, 
to remain available until expended.
    (g) Requirements for Loan Guarantees.--A loan guarantee may be 
issued under this Act upon application to the Board by a qualified 
steel company pursuant to an agreement to provide a loan to that 
qualified steel company by a private bank or investment company, if the 
Board determines that--
            (1) credit is not otherwise available to that company under 
        reasonable terms or conditions sufficient to meet its financing 
        needs, as reflected in the financial and business plans of that 
        company;
            (2) the prospective earning power of that company, together 
        with the character and value of the security pledged, furnish 
        reasonable assurance of repayment of the loan to be guaranteed 
        in accordance with its terms;
            (3) the loan to be guaranteed bears interest at a rate 
        determined by the Board to be reasonable, taking into account 
        the current average yield on outstanding obligations of the 
        United States with remaining periods of maturity comparable to 
        the maturity of such loan; and
            (4) the company has agreed to an audit by the General 
        Accounting Office, prior to the issuance of the loan guarantee 
        and annually while any such guaranteed loan is outstanding.
    (h) Terms and Conditions of Loan Guarantees.--
            (1) Loan duration.--All loans guaranteed under this Act 
        shall be payable in full not later than December 31, 2005, and 
        the terms and conditions of each such loan shall provide that 
        the loan may not be amended, or any provision thereof waived, 
        without the consent of the Board.
            (2) Loan security.--Any commitment to issue a loan 
        guarantee under this Act shall contain such affirmative and 
        negative covenants and other protective provisions that the 
        Board determines are appropriate. The Board shall require 
        security for the loans to be guaranteed under this Act at the 
        time at which the commitment is made.
            (3) Fees.--A qualified steel company receiving a guarantee 
        under this Act shall pay a fee in an amount equal to 0.5 
        percent of the outstanding principal balance of the guaranteed 
        loan to the Department of the Treasury.
    (i) Reports to Congress.--The Secretary of Commerce shall submit to 
the Congress annually a full report of the activities of the Board 
under this Act during fiscal years 1999 and 2000, and annually 
thereafter, during such period as any loan guaranteed under this Act is 
outstanding.

SEC. 7. SALARIES AND ADMINISTRATIVE EXPENSES.

    For necessary expenses to administer the Program, there is 
authorized to be appropriated to the Department of Commerce $5,000,000, 
to remain available until expended, which may be transferred to the 
Office of the Assistant Secretary for Trade Development of the 
International Trade Administration.

SEC. 8. TERMINATION OF GUARANTEE AUTHORITY.

    The authority of the Board to make commitments to guarantee any 
loan under this Act shall terminate on December 31, 2001.

SEC. 9. REGULATORY ACTION.

    The Board shall issue such final procedures, rules, and regulations 
as may be necessary to carry out this Act not later than 60 days after 
the date of enactment of this Act.

SEC. 10. IRON ORE COMPANIES.

    (a) In General.--Subject to the requirements of this section, an 
iron ore company incorporated under the law of any State shall be 
treated as a qualified steel company for purposes of the Program.
    (b) Total Guarantee Limit for Iron Ore Companies.--Of the aggregate 
amount of loans authorized to be guaranteed and outstanding at any one 
time under section 6(b), not to exceed $30,000,000 of the amount of 
loans guaranteed and outstanding at any one time shall be loans with 
respect to iron ore companies.
    (c) Minimum Iron Ore Company Guarantee Amount.--Notwithstanding 
section 6(d), a single loan to an iron ore company in an amount of not 
less than $6,000,000 may be guaranteed under this section.

SEC. 11. EMERGENCY DESIGNATION.

    The entire amount made available to carry out this Act--
            (1) is designated by the Congress as an emergency 
        requirement pursuant to section 251(b)(2)(A) of the Balanced 
        Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 
        901(b)(2)(A)); and
            (2) shall be available only to the extent that an official 
        budget request that includes designation of the entire amount 
        of the request as an emergency requirement (as defined in the 
        Balanced Budget and Emergency Deficit Control Act of 1985) is 
        transmitted by the President to the Congress.

Summary: Emergency Steel Loan Guarantee Program - Establishes the Emergency Steel Loan Guarantee Program, and the Loan Guarantee Board to administer it, composed of the Secretaries of Commerce, the Treasury, and Labor. 
Authorizes such Program to guarantee loans by private banking and investment institutions to qualified steel companies, in accordance with Board-established procedures. 
Sets forth loan guarantee parameters. 
Authorizes appropriations. 
Treats an iron ore company as a qualified steel company for purposes of the Program.