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115th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 115-814
======================================================================
BETTER UTILIZATION OF INVESTMENTS LEADING TO DEVELOPMENT ACT OF 2018
_______
July 11, 2018.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Royce of California, from the Committee on Foreign Affairs,
submitted the following
R E P O R T
[To accompany H.R. 5105]
[Including cost estimate of the Congressional Budget Office]
The Committee on Foreign Affairs, to whom was referred the
bill (H.R. 5105) to establish the United States International
Development Finance Corporation, and for other purposes, having
considered the same, reports favorably thereon with an
amendment and recommends that the bill as amended do pass.
TABLE OF CONTENTS
Page
The Amendment.................................................... 2
Summary and Purpose.............................................. 24
Background and Need for the Legislation.......................... 24
Hearings......................................................... 30
Committee Consideration.......................................... 30
Committee Oversight Findings..................................... 30
New Budget Authority, Tax Expenditures, and Federal Mandates..... 30
Congressional Budget Office Cost Estimate........................ 31
Directed Rule Making............................................. 39
Non-Duplication of Federal Programs.............................. 39
Performance Goals and Objectives................................. 39
Congressional Accountability Act................................. 40
New Advisory Committees.......................................... 40
Earmark Identification........................................... 40
Section-by-Section Analysis...................................... 40
Changes in Existing Law Made by the Bill, as Reported............ 46
The Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Better Utilization
of Investments Leading to Development Act of 2018'' or the ``BUILD Act
of 2018''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--ESTABLISHMENT
Sec. 101. Statement of policy.
Sec. 102. United States International Development Finance Corporation.
Sec. 103. Management of Corporation.
Sec. 104. Inspector General of the Corporation.
Sec. 105. Independent accountability mechanism.
TITLE II--AUTHORITIES
Sec. 201. Authorities relating to provision of support.
Sec. 202. Terms and conditions.
Sec. 203. Payment of losses.
Sec. 204. Termination.
TITLE III--ADMINISTRATIVE AND GENERAL PROVISIONS
Sec. 301. Operations.
Sec. 302. Corporate powers.
Sec. 303. Maximum contingent liability.
Sec. 304. Corporate funds.
Sec. 305. Coordination with other development agencies.
TITLE IV--MONITORING, EVALUATION, AND REPORTING
Sec. 401. Establishment of risk and audit committees.
Sec. 402. Performance measures.
Sec. 403. Annual report.
Sec. 404. Publicly available project information.
Sec. 405. Engagement with investors.
Sec. 406. Notification of support to be provided by the Corporation.
TITLE V--CONDITIONS, RESTRICTIONS, AND PROHIBITIONS
Sec. 501. Limitations and preferences.
Sec. 502. Additionality and avoidance of market distortion.
Sec. 503. Prohibition on support in sanctioned countries and with
sanctioned persons.
Sec. 504. Penalties for misrepresentation, fraud, and bribery.
TITLE VI--TRANSITIONAL PROVISIONS
Sec. 601. Definitions.
Sec. 602. Reorganization plan.
Sec. 603. Transfer of functions.
Sec. 604. Termination of Overseas Private Investment Corporation and
other superceded authorities.
Sec. 605. Transitional authorities.
Sec. 606. Savings provisions.
Sec. 607. Other terminations.
Sec. 608. Incidental transfers.
Sec. 609. Reference.
Sec. 610. Conforming amendments.
SEC. 2. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Relations and the
Committee on Appropriations of the Senate; and
(B) the Committee on Foreign Affairs and the
Committee on Appropriations of the House of
Representatives.
(2) Less developed country.--The term ``less developed
country'' means a country with a low-income economy, lower-
middle-income economy, or upper-middle-income economy, as
defined by the International Bank for Reconstruction and
Development and the International Development Association
(collectively referred to as the ``World Bank'').
(3) Predecessor authority.--The term ``predecessor
authority'' means authorities repealed by title VI.
(4) Qualifying sovereign entity.--The term ``qualifying
sovereign entity'' means--
(A) any agency or instrumentality of a foreign state
(as defined in section 1603 of title 28, United States
Code) that has a purpose that is similar to the purpose
of the Corporation as described in section 102(b); and
(B) any international financial institution (as
defined in section 1701(c) of the International
Financial Institutions Act (22 U.S.C. 262r(c))).
TITLE I--ESTABLISHMENT
SEC. 101. STATEMENT OF POLICY.
It is the policy of the United States to facilitate market-based
private sector development and economic growth in less developed
countries through the provision of credit, capital, and other financial
support--
(1) to mobilize private capital in support of sustainable,
broad-based economic growth, poverty reduction, and development
through demand-driven partnerships with the private sector that
further the foreign policy interests of the United States;
(2) to finance development in a way that builds and
strengthens civic institutions, promotes competition, provides
for public accountability and transparency;
(3) to help private sector actors overcome identifiable
market gaps and inefficiencies without distorting markets;
(4) to achieve clearly defined economic and social
development outcomes;
(5) to coordinate with institutions with purposes similar to
the purposes of the Corporation to leverage resources of those
institutions to produce the greatest impact;
(6) to provide countries a robust alternative to state-
directed investments by authoritarian governments and United
States strategic competitors using high standards of
transparency, environmental and social safeguards, and which
take into account the debt sustainability of partner countries;
(7) to leverage private sector capabilities and innovative
development tools to help countries currently receiving United
States assistance to transition from their status as recipients
of traditional forms of assistance in order to decrease their
reliance on such assistance over time;
(8) to complement and be guided by overall United States
foreign policy, development, and national security objectives,
taking into account the priorities and needs of countries
receiving support.
SEC. 102. UNITED STATES INTERNATIONAL DEVELOPMENT FINANCE CORPORATION.
(a) Establishment.--There is established in the Executive branch the
United States International Development Finance Corporation (in this
Act referred to as the ``Corporation''), which shall be a wholly owned
Government corporation (as defined in section 9101 of title 31, United
States Code) under the foreign policy guidance of the Secretary of
State.
(b) Purpose.--The purpose of the Corporation shall be to mobilize and
facilitate the participation of private sector capital and skills in
the economic development of less developed countries, as described in
subsection (c), and countries in transition from nonmarket to market
economies, in order to complement the development assistance
objectives, and advance the foreign policy interests, of the United
States. In carrying out its purpose, the Corporation, utilizing broad
criteria, shall take into account in its financing operations the
economic and financial soundness of projects for which it provides
support under title II.
(c) Less Developed Country Focus.--
(1) In general.--The Corporation shall prioritize the
provision of support under title II in less developed countries
with a low-income economy or a lower-middle-income economy.
(2) Support in upper-middle-income countries.--The
Corporation shall restrict the provision of support under title
II in a less developed country with an upper-middle-income
economy unless--
(A) the President certifies to the appropriate
congressional committees that such support furthers the
national economic or foreign policy interests of the
United States; and
(B) such support is likely to be highly developmental
or provide developmental benefits to the poorest
population of that country.
SEC. 103. MANAGEMENT OF CORPORATION.
(a) Structure of Corporation.--There shall be in the Corporation a
Board of Directors (in this Act referred to as the ``Board''), a Chief
Executive Officer, a Deputy Chief Executive Officer, a Chief Risk
Officer, Chief Development Officer, and such other officers as the
Board may determine.
(b) Board of Directors.--
(1) Duties.--All powers of the Corporation shall vest in and
be exercised by or under the authority of the Board. The
Board--
(A) shall perform the functions specified to be
carried out by the Board in this Act;
(B) may prescribe, amend, and repeal bylaws, rules,
regulations, policies, and procedures governing the
manner in which the business of the Corporation may be
conducted and in which the powers granted to the
Corporation by law may be exercised; and
(C) shall develop, in consultation with stakeholders
and other interested parties, a publicly-available
policy with respect to consultations, hearings, and
other forms of engagement in order to provide for
meaningful public participation in the Board's
activities.
(2) Membership of board.--
(A) In general.--The Board shall consist of--
(i) the Chief Executive Officer of the
Corporation;
(ii) the officers specified in subparagraph
(B); and
(iii) four other individuals who shall be
appointed by the President, by and with the
advice and consent of the Senate, of which--
(I) one individual should be
appointed from among a list of at least
five individuals submitted by the
majority leader of the Senate after
consultation with the chairman of the
Committee on Foreign Relations of the
Senate;
(II) one individual should be
appointed from among a list of at least
five individuals submitted by the
minority leader of the Senate after
consultation with the ranking member of
the Committee on Foreign Relations of
the Senate;
(III) one individual should be
appointed from among a list of at least
five individuals submitted by the
Speaker of the House of Representatives
after consultation with the chairman of
the Committee on Foreign Affairs of the
House of Representatives; and
(IV) one individual should be
appointed from among a list of at least
five individuals submitted by the
minority leader of the House of
Representatives after consultation with
the ranking member of the Committee on
Foreign Affairs of the House of
Representatives.
(B) Officers specified.--
(i) In general.--The officers specified in
this subparagraph are the following:
(I) The Secretary of State or a
designee of the Secretary.
(II) The Administrator of the United
States Agency for International
Development or a designee of the
Administrator.
(III) The Secretary of the Treasury
or a designee of the Secretary.
(IV) The Secretary of Commerce or a
designee of the Secretary.
(ii) Requirements for designees.--A designee
under clause (i) shall be selected from among
officers--
(I) appointed by the President, by
and with the advice and consent of the
Senate;
(II) whose duties relate to the
programs of the Corporation; and
(III) who is designated by and
serving at the pleasure of the
President.
(C) Requirements for non-government members.--A
member of the Board described in subparagraph
(A)(iii)--
(i) may not be an officer or employee of the
United States Government;
(ii) shall have relevant experience, which
may include experience relating to the private
sector, international environment, labor
organizations, or international development, to
carry out the purposes of the Corporation;
(iii) shall be appointed for a term of 3
years and may be reappointed for one additional
term;
(iv) shall serve until the member's successor
is appointed and confirmed;
(v) shall be compensated at a rate equivalent
to that of level IV of the Executive Schedule
under section 5315 of title 5, United States
Code, when engaged in the business of the
Corporation; and
(vi) may be paid per diem in lieu of
subsistence at the applicable rate under the
Federal Travel Regulation under subtitle F of
title 41, Code of Federal Regulations, from
time to time, while away from the home or usual
place of business of the member.
(3) Chairperson.--There shall be a Chairperson of the Board
designated by the President from among the individuals
described in paragraph (2)(A).
(4) Vice chairperson.--The Administrator of the United States
Agency for International Development, or the designee of the
Administrator under paragraph (2)(B)(i)(II), shall serve as the
Vice Chairperson of the Board.
(5) Quorum.--Five members of the Board shall constitute a
quorum for the transaction of business by the Board.
(c) Public Hearings.--
(1) Public hearings by the board.--The Board shall hold at
least one public hearing each year in order to afford an
opportunity for any person to present views with respect to
whether--
(A) the Corporation is carrying out its activities in
accordance with this Act; and
(B) any support provided by the Corporation under
title II in any country should have been or should be
extended.
(2) Additional public hearings.--In conjunction with each
meeting of the Board, the Corporation shall hold a public
hearing in order to afford an opportunity for any person to
present views regarding the activities of the Corporation. Such
views shall be made part of the record.
(d) Chief Executive Officer.--
(1) Appointment.--There shall be in the Corporation a Chief
Executive Officer, who shall be appointed by the President, by
and with the advice and consent of the Senate, and who shall
serve at the pleasure of the President.
(2) Authorities and duties.--The Chief Executive Officer
shall be responsible for the management of the Corporation and
shall exercise the powers and discharge the duties of the
Corporation subject to the bylaws, rules, regulations, and
procedures established by the Board.
(3) Relationship to board.--The Chief Executive Officer shall
report to and be under the direct authority of the Board.
(4) Compensation.--Section 5313 of title 5, United States
Code, is amended by adding at the end the following:
``Chief Executive Officer, United States International
Development Finance Corporation.''.
(e) Deputy Chief Executive Officer.--There shall be in the
Corporation a Deputy Chief Executive Officer, who shall be appointed by
the President, by and with the advice and consent of the Senate, and
who shall serve at the pleasure of the President.
(f) Chief Risk Officer.--
(1) Appointment.--Subject to the approval of the Board, the
Chief Executive Officer of the Corporation shall appoint a
Chief Risk Officer, from among individuals with experience at a
senior level in financial risk management, who--
(A) shall report directly to the Board; and
(B) shall be removable only by a majority vote of the
Board.
(2) Duties.--The Chief Risk Officer shall, in coordination
with the audit committee of the Board established under section
401, develop, implement, and manage a comprehensive process for
identifying, assessing, monitoring, and limiting risks to the
Corporation, including the overall portfolio diversification of
the Corporation.
(g) Chief Development Officer.--
(1) Appointment.--Subject to the approval of the Board, the
Chief Executive Officer, in conjunction with the Administrator
of the United States Agency for International Development,
shall appoint a Chief Development Officer, from among
individuals with experience in development, who--
(A) shall report directly to the Board; and
(B) shall be removable only by a majority vote of the
Board.
(2) Duties.--The Chief Development Officer shall--
(A) coordinate the Corporation's development policies
and implementation efforts with the United States
Agency for International Development, the Millennium
Challenge Corporation, and other relevant United State
Government departments and agencies, including directly
liaising with missions of the United States Agency for
International Development, to ensure that departments,
agencies, and missions have training, awareness, and
access to the Corporation's tools in relation to
development policy and projects in countries;
(B) under the guidance of the Chief Executive
Officer, manage employees of the Corporation that are
dedicated to structuring, monitoring and evaluating
transactions and projects co-designed with the United
States Agency for International Development and other
relevant United State Government departments and
agencies;
(C) authorize and coordinate transfers of funds or
other resources to and from such agencies, departments,
or missions upon the concurrence of those institutions
in support of the Corporation's projects or activities;
and
(D) coordinate and implement the activities of the
Corporation under section 405.
(h) Officers and Employees.--
(1) In general.--Except as otherwise provided in this
section, officers, employees, and agents shall be selected and
appointed by the Corporation, and shall be vested with such
powers and duties as the Corporation may determine.
(2) Administratively determined employees.--
(A) Appointment; compensation; removal.--Of officers
and employees employed by the Corporation under
paragraph (1), not to exceed 50 may be appointed,
compensated, or removed without regard to title 5,
United States Code.
(B) Reinstatement.--Under such regulations as the
President may prescribe, officers and employees
appointed to a position under subparagraph (A) may be
entitled, upon removal from such position (unless the
removal was for cause), to reinstatement to the
position occupied at the time of appointment or to a
position of comparable grade and salary.
(C) Additional positions.--Positions authorized by
subparagraph (A) shall be in addition to those
otherwise authorized by law, including positions
authorized under section 5108 of title 5, United States
Code.
(D) Rates of pay for officers and employees.--The
Corporation may set and adjust rates of basic pay for
officers and employees appointed under subparagraph (A)
without regard to the provisions of chapter 51 or
subchapter III of chapter 53 of title 5, United States
Code, relating to classification of positions and
General Schedule pay rates, respectively.
(3) Liability of employees.--
(A) In general.--An individual who is a member of the
Board or an officer or employee of the Corporation has
no liability under this Act with respect to any claim
arising out of or resulting from any act or omission by
the individual within the scope of the employment of
the individual in connection with any transaction by
the Corporation.
(B) Rule of construction.--Subparagraph (A) shall not
be construed to limit personal liability of an
individual for criminal acts or omissions, willful or
malicious misconduct, acts or omissions for private
gain, or any other acts or omissions outside the scope
of the individual's employment.
(C) Savings provision.--This paragraph shall not be
construed--
(i) to affect--
(I) any other immunities and
protections that may be available to an
individual described in subparagraph
(A) under applicable law with respect
to a transaction described in that
subparagraph; or
(II) any other right or remedy
against the Corporation, against the
United States under applicable law, or
against any person other than an
individual described in subparagraph
(A) participating in such a
transaction; or
(ii) to limit or alter in any way the
immunities that are available under applicable
law for Federal officers and employees not
described in this paragraph.
SEC. 104. INSPECTOR GENERAL OF THE CORPORATION.
The President shall appoint and maintain an Inspector General in the
Corporation, in accordance with the Inspector General Act of 1978 (5
U.S.C. App.).
SEC. 105. INDEPENDENT ACCOUNTABILITY MECHANISM.
(a) In General.--The Board shall establish a transparent and
independent accountability mechanism.
(b) Functions.--The independent accountability mechanism established
pursuant to subsection (a) shall--
(1) annually evaluate and report to the Board and Congress
regarding compliance with environmental, social, labor, human
rights, and transparency standards, consistent with Corporation
statutory mandates;
(2) provide a forum for resolving concerns regarding the
impacts of specific Corporation-supported projects with respect
to such standards; and
(3) provide advice regarding Corporation projects, policies,
and practices.
TITLE II--AUTHORITIES
SEC. 201. AUTHORITIES RELATING TO PROVISION OF SUPPORT.
(a) In General.--The authorities in this title should only be
exercised to--
(1) carry out of the policy of the United States in section
101 and the purpose of the Corporation in section 102;
(2) mitigate risks to United States taxpayers by sharing
risks with the private sector and qualifying sovereign entities
through co-financing and structuring of tools; and
(3) ensure that support provided under this title is
additional to private sector resources by mobilizing private
capital that would otherwise not be deployed without such
support.
(b) Lending and Guaranties.--
(1) In general.--The Corporation may make loans or guaranties
upon such terms and conditions as the Corporation may
determine.
(2) Denomination.--Loans and guaranties issued under
paragraph (1) may be denominated and repayable in United States
dollars or foreign currencies. Foreign currency denominated
loans and guaranties should only be provided if the Board
determines there is a substantive policy rationale for such
loans and guaranties.
(3) Applicability of federal credit reform act of 1990.--
Loans and guaranties issued under paragraph (1) shall be
subject to the requirements of the Federal Credit Reform Act of
1990 (2 U.S.C. 661 et seq.).
(c) Equity Investments.--
(1) In general.--The Corporation may, as a minority investor,
support projects with funds or use other mechanisms for the
purpose of purchasing, and may make and fund commitments to
purchase, invest in, make pledges in respect of, or otherwise
acquire, equity or quasi-equity securities or shares or
financial interests of any entity, including as a limited
partner or other investor in investment funds, upon such terms
and conditions as the Corporation may determine.
(2) Denomination.--Support provided under paragraph (1) may
be denominated and repayable in United States dollars or
foreign currency. Foreign currency denominated support provided
by paragraph (1) should only be provided if the Board
determines there is a substantive policy rationale for such
support.
(3) Guidelines and criteria.--The Corporation shall develop
guidelines and criteria to require that the use of the
authority provided by paragraph (1) with respect to a project
has a clearly defined development and foreign policy rationale,
taking into account the following objectives:
(A) The support for the project would be more likely
than not to substantially reduce or overcome the effect
of an identified market failure in the country in which
the project is carried out.
(B) The project would not have proceeded or would
have been substantially delayed without the support.
(C) The support will meaningfully contribute to
transforming local conditions to promote the
development of markets.
(D) The support can be shown to be aligned with
commercial partner incentives.
(E) The support can be shown to have significant
developmental impact and will contribute to long-term
commercial sustainability.
(F) The support furthers the policy of the United
States described in section 101.
(4) Limitations on equity investments.--
(A) Per project limit.--The aggregate amount of
support provided under this subsection with respect to
any project shall not exceed 30 percent of the
aggregate amount of all equity investment made from any
source to the project at the time that the Corporation
approves support of the project.
(B) Total limit.--Support provided pursuant to this
subsection shall be limited to not more than 35 percent
of the Corporation's aggregate exposure on the date
that such support is provided.
(5) Sales and liquidation of position.--The Corporation shall
seek to sell and liquidate any support for a project provided
under this subsection as soon as commercially feasible,
commensurate with other similar investors in the project and
taking into consideration the national security interests of
the United States.
(6) Timetable.--The Corporation shall create a project-
specific timetable for support provided under paragraph (1).
(d) Insurance and Reinsurance.--The Corporation may issue insurance
or reinsurance, upon such terms and conditions as the Corporation may
determine, to private sector entities and qualifying sovereign entities
assuring protection of their investments in whole or in part against
any or all political risks such as currency inconvertibility and
transfer restrictions, expropriation, war, terrorism, and civil
disturbance, breach of contract, or non-honoring of financial
obligations.
(e) Promotion of and Support for Private Investment Opportunities.--
(1) In general.--In order to carry out the purposes of the
Corporation described in section 102(b), the Corporation may
initiate and support, through financial participation,
incentive grant, or otherwise, and on such terms and conditions
as the Corporation may determine, feasibility studies for the
planning, development, and management of, and procurement for,
potential bilateral and multilateral development projects
eligible for support under this title, including training
activities undertaken in connection with such projects, for the
purpose of promoting investment in such projects and the
identification, assessment, surveying, and promotion of private
investment opportunities, utilizing wherever feasible and
effective, the facilities of private investors.
(2) Contributions to costs.--The Corporation shall, to the
maximum extent practicable, require any person receiving funds
under the authorities of this subsection to--
(A) share the costs of feasibility studies and other
project planning services funded under this subsection;
and
(B) reimburse the Corporation those funds provided
under this section, if the person succeeds in project
implementation.
(f) Special Projects and Programs.--The Corporation may administer
and manage special projects and programs in support of specific
transactions undertaken by the Corporation, including programs of
financial and advisory support that provide private technical,
professional, or managerial assistance in the development of human
resources, skills, technology, capital savings, and intermediate
financial and investment institutions and cooperatives and including
the initiation of incentives, grants, and studies for renewable energy,
microenterprise households, women's economic empowerment,
microenterprise households, and other small business activities.
(g) Enterprise Funds.--
(1) In general.--The Corporation may, following consultation
with the Secretary of State, the Administrator of the United
States Agency for International Development, and the heads of
other relevant departments or agencies, establish and operate
enterprise funds in accordance with this subsection.
(2) Procedures and requirements.--The provisions of section
201 of the Support for East European Democracy (SEED) Act of
1989 (22 U.S.C. 5421) (other than the provisions of subsections
(a), (b), (c), (d)(1), (d)(3), (e), (f), and (j) of that
section), shall be deemed to apply with respect to any
enterprise fund established by the Corporation under this
subsection and to funds made available to any such enterprise
fund in the same manner and to the same extent as such
provisions apply with respect to enterprise funds established
pursuant to such section 201 or to funds made available to
enterprise funds established under that section.
(3) Purposes for which support may be provided.--The
Corporation, subject to the approval of the Board, may
designate private, nonprofit organizations as eligible to
receive support under this subsection for the following
purposes:
(A) To promote development of economic freedom and
private sectors, including small- and medium-sized
enterprises and joint ventures with the United States
and host country participants.
(B) To facilitate access to the credit to small- and
medium-sized enterprises with sound business plans in
countries where there is limited means of accessing
credit on market terms.
(C) To promote policies and practices conducive to
economic freedom and private sector development.
(D) To attract foreign direct investment capital to
further promote private sector development and economic
freedom.
(E) To complement the work of the United States
Agency for International Development and other donors
to improve the overall business-enabling environment,
financing the creation and expansion of the private
business sector.
(F) To make financially sustainable investments
designed to generate measurable social benefits and
build technical capacity in addition to financial
returns.
(4) Operation of funds.--
(A) Expenditures.--Funds made available to an
enterprise fund shall be expended at the minimum rate
necessary to make timely payments for projects and
activities carried out under this subsection.
(B) Administrative expenses.--Not more than 3 percent
of the funds made available to an enterprise fund may
be obligated or expended for the administrative
expenses of the enterprise fund.
(5) Board of directors.--Each enterprise fund established
under this subsection should be governed by a Board of
Directors comprised of private citizens of the United States or
the host country, who--
(A) shall be appointed by the President after
consultation with the chairmen and ranking members of
the appropriate congressional committees; and
(B) have pursued careers in international business
and have demonstrated expertise in international and
emerging market investment activities.
(6) Majority member requirement.--The majority of the members
of the Board of Directors shall be United States citizens who
shall have relevant experience relating to the purposes
described in paragraph (3).
(7) Reports.--Not later than one year after the date of the
establishment of an enterprise fund under this subsection, and
annually thereafter until the enterprise fund terminates in
accordance with paragraph (10), the Board of Directors of the
enterprise fund shall--
(A) submit to the appropriate congressional
committees a report--
(i) detailing the administrative expenses of
the enterprise fund during the year preceding
the submission of the report;
(ii) describing the operations, activities,
engagement with civil society and relevant
local private sector entities, development
objectives and outcomes, financial condition,
and accomplishments of the enterprise fund
during that year;
(iii) describing the results of the audit
conducted under paragraph (8) during that year;
and
(iv) describing how audits conducted under
paragraph (8) are informing the operations and
activities of the enterprise fund; and
(B) publish, on a publicly available internet website
of the enterprise fund, each report required by
subparagraph (A).
(8) Oversight.--
(A) Inspector general performance audits.--
(i) In general.--The Inspector General of the
Corporation shall conduct periodic audits of
the activities of each enterprise fund
established under this subsection.
(ii) Consideration.--In conducting an audit
under clause (i), the Inspector General shall
assess whether the activities of the enterprise
fund--
(I) support the purposes described in
paragraph (3);
(II) result in profitable private
sector investing; and
(III) generate measurable social
benefits.
(B) Recordkeeping requirements.--The Corporation
shall ensure that each enterprise fund receiving
support under this subsection--
(i) keeps separate accounts with respect to
such support; and
(ii) maintains such records as may be
reasonably necessary to facilitate effective
audits under this paragraph.
(9) Return of funds to treasury.--Any funds resulting from
any liquidation, dissolution, or winding up of an enterprise
fund, in whole or in part, shall be returned to the Treasury of
the United States.
(10) Termination.--The authority of an enterprise fund to
provide support under this subsection shall terminate on the
earlier of--
(A) the date that is 7 years after the date of the
first expenditure of amounts from the enterprise fund;
or
(B) the date on which the enterprise fund is
liquidated.
(h) Supervision of Support.--Support provided under this title shall
be subject to section 622(c) of the Foreign Assistance Act of 1961 (22
U.S.C. 2382(c)).
SEC. 202. TERMS AND CONDITIONS.
(a) In General.--Except as provided in subsection (b), support
provided by the Corporation under this title shall be on such terms and
conditions as the Corporation may prescribe.
(b) Requirements.--The following requirements apply to support
provided by the Corporation under this title:
(1) The Corporation shall provide support using authorities
under this title only if it is necessary--
(A) to alleviate a credit market imperfection; or
(B) to achieve specified development or foreign
policy objectives of the United States Government by
providing support in the most efficient way to meet
those objectives on a case-by-case basis.
(2) The final maturity of a loan made or guaranteed by the
Corporation shall not exceed the lesser of--
(A) 25 years; or
(B) debt servicing capabilities of the project to be
financed by the loan (as determined by the
Corporation).
(3) The Corporation shall, with respect to providing any loan
guaranty to a project, require the parties to the project to
bear the risk of loss in an amount equal to at least 20 percent
of the guaranteed support by the Corporation in the project.
(4) The Corporation may not make or guarantee a loan unless
the Corporation determines that the borrower or lender is
responsible and that adequate provision is made for servicing
the loan on reasonable terms and protecting the financial
interest of the United States.
(5) The interest rate for direct loans and interest
supplements on guaranteed loans shall be set by reference to a
benchmark interest rate (yield) on marketable Treasury
securities or other widely recognized or appropriate benchmarks
with a similar maturity to the loans being made or guaranteed,
as determined in consultation with the Director of the Office
of Management and Budget and the Secretary of the Treasury. The
Corporation shall establish appropriate minimum interest rates
for loans, guaranties, and other instruments as necessary.
(6) The minimum interest rate for new loans as established by
the Corporation shall be adjusted periodically to take account
of changes in the interest rate of the benchmark financial
instrument.
(7)(A) The Corporation shall set fees or premiums for support
provided under this title at levels that minimize the cost to
the Government while supporting achievement of the objectives
of support.
(B) The Corporation shall review fees for loan guaranties
periodically to ensure that the fees assessed on new loan
guaranties are at a level sufficient to cover the Corporation's
most recent estimates of its costs.
(8) Any loan guaranty provided by the Corporation shall be
conclusive evidence that--
(A) the guaranty has been properly obtained;
(B) the loan qualified for the guaranty; and
(C) but for fraud or material misrepresentation by
the holder of the guaranty, the guaranty is presumed to
be valid, legal, and enforceable.
(9) The Corporation shall prescribe explicit standards for
use in periodically assessing the credit risk of new and
existing direct loans or guaranteed loans.
(10) The Corporation may not make loans or loan guaranties
except to the extent that budget authority to cover the costs
of the loans or guaranties is provided in advance in an
appropriations Act, as required by section 504 of the Federal
Credit Reform Act of 1990 (2 U.S.C. 661c).
(11) The Corporation shall rely upon specific standards to
assess the developmental and strategic value of projects for
which it provides support and should only provide the minimum
level of support necessary in order to support such projects.
(12) Any loan or loan guaranty made by the Corporation should
be provided on a senior basis or pari passu with other senior
debt unless there is a substantive policy rationale to provide
such support otherwise.
SEC. 203. PAYMENT OF LOSSES.
(a) Payments for Defaults on Guaranteed Loans.--
(1) In general.--If the Corporation determines that the
holder of a loan guaranteed by the Corporation suffers a loss
as a result of a default by a borrower on the loan, the
Corporation shall pay to the holder the percent of the loss, as
specified in the guaranty contract after the holder of the loan
has made such further collection efforts and instituted such
enforcement proceedings as the Corporation may require.
(2) Subrogation.--Upon making a payment described in
paragraph (1), the Corporation shall ensure the Corporation
will be subrogated to all the rights of the recipient of the
payment.
(3) Recovery efforts.--The Corporation shall pursue recovery
from the borrower of the amount of any payment made under
paragraph (1) with respect to the loan.
(b) Limitation on Payments.--
(1) In general.--Except as provided by paragraph (2),
compensation for insurance, reinsurance, or a guaranty issued
under this title shall not exceed the dollar value of the
tangible or intangible contributions or commitments made in the
project, plus interest, earnings, or profits actually accrued
on such contributions or commitments, to the extent provided by
such insurance, reinsurance, or guaranty.
(2) Exception.--
(A) In general.--The Corporation may provide that--
(i) appropriate adjustments in the insured
dollar value be made to reflect the replacement
cost of project assets; and
(ii) compensation for a claim of loss under
insurance of an equity investment under section
201(b) may be computed on the basis of the net
book value attributable to the equity
investment on the date of loss.
(3) Additional limitation.--
(A) In general.--Notwithstanding paragraph (2)(A)(ii)
and except as provided in subparagraph (B), the
Corporation shall limit the amount of direct insurance
and reinsurance issued under section 201 with respect
to a project so as to require that the insured and its
affiliates bear the risk of loss for at least 10
percent of the amount of the Corporation's exposure to
that insured and its affiliates in the project.
(B) Exception.--The limitation under subparagraph (A)
shall not apply to direct insurance or reinsurance of
loans provided by banks or other financial institutions
to unrelated parties.
(c) Actions by Attorney General.--The Attorney General shall take
such action as may be appropriate to enforce any right accruing to the
United States as a result of the issuance of any loan or guaranty under
this title.
(d) Rule of Construction.--Nothing in this section shall be construed
to preclude any forbearance for the benefit of a borrower that may be
agreed upon by the parties to a loan guaranteed by the Corporation if
budget authority for any resulting costs to the United States
Government (as defined in section 502 of the Federal Credit Reform Act
of 1990 (2 U.S.C. 661a)) is available.
SEC. 204. TERMINATION.
(a) In General.--The authorities provided under this title terminate
on the date that is 7 years after the date of the enactment of this
Act.
(b) Termination of Corporation.--The Corporation shall terminate on
the date on which the portfolio of the Corporation is liquidated.
TITLE III--ADMINISTRATIVE AND GENERAL PROVISIONS
SEC. 301. OPERATIONS.
(a) Bilateral Agreements.--The Corporation may provide support under
title II in connection with projects in any country the government of
which has entered into an agreement with the United States authorizing
the Corporation to provide such support in that country.
(b) Claims Settlement.--
(1) In general.--Claims arising as a result of support
provided under title II or under predecessor authority may be
settled, and disputes arising as a result thereof may be
arbitrated with the consent of the parties, on such terms and
conditions as the Corporation may determine.
(2) Settlements conclusive.--Payment made pursuant to any
settlement pursuant to paragraph (1), or as a result of an
arbitration award, shall be final and conclusive
notwithstanding any other provision of law.
(c) Presumption of Compliance.--Each contract executed by such
officer or officers as may be designated by the Board shall be
conclusively presumed to be issued in compliance with the requirements
of this Act.
(d) Electronic Payments and Documents.--The Corporation shall
implement policies to accept electronic documents and electronic
payments in all of its programs.
SEC. 302. CORPORATE POWERS.
(a) In General.--The Corporation--
(1) may adopt, alter, and use a seal, to include an
identifiable symbol of the United States;
(2) may make and perform such contracts, including no-cost
contracts (as defined by the Corporation), grants, and other
agreements notwithstanding division C of subtitle I of title
41, United States Code, with any person or government however
designated and wherever situated, as may be necessary for
carrying out the functions of the Corporation;
(3) may lease, purchase, or otherwise acquire, improve, and
use such real property wherever situated, as may be necessary
for carrying out the functions of the Corporation;
(4) may accept cash gifts or donations of services or of
property (real, personal, or mixed), tangible or intangible,
for the purpose of carrying out the functions of the
Corporation;
(5) may use the United States mails in the same manner and on
the same conditions as the Executive departments (as defined in
section 101 of title 5, United States Code);
(6) may contract with individuals for personal services, who
shall not be considered Federal employees for any provision of
law administered by the Director of the Office of Personnel
Management;
(7) may hire or obtain passenger motor vehicles;
(8) may sue and be sued in its corporate name;
(9) may acquire, hold, or dispose of, upon such terms and
conditions as the Corporation may determine, any property,
real, personal, or mixed, tangible or intangible, or any
interest in such property;
(10) may lease office space for the Corporation's own use,
the obligation of amounts for such lease is limited to the
current fiscal year for which payments are due until the
expiration of the current lease of the predecessor authority,
as of the day before the date of the enactment of this Act;
(11) may indemnify directors, officers, employees, and agents
of the Corporation for liabilities and expenses incurred in
connection with their activities on behalf of the Corporation;
(12) notwithstanding any other provision of law, may
represent itself or contract for representation in all legal
and arbitral proceedings;
(13) may exercise any priority of the Government of the
United States in collecting debts from bankrupt, insolvent, or
decedents' estates;
(14) may collect, notwithstanding section 3711(g)(1) of title
31, United States Code, or compromise any obligations assigned
to or held by the Corporation, including any legal or equitable
rights accruing to the Corporation;
(15) may make arrangements with foreign governments
(including agencies, instrumentalities, or political
subdivisions of such governments) or with multilateral
organizations or institutions for sharing liabilities;
(16) may sell direct investments of the Corporation to
private investors upon such terms and conditions as the
Corporation may determine; and
(17) shall have such other powers as may be necessary and
incident to carrying out the functions of the Corporation.
(b) Treatment of Property.--Notwithstanding any other provision of
law relating to the acquisition, handling, or disposal of property by
the United States, the Corporation shall have the right in its
discretion to complete, recondition, reconstruct, renovate, repair,
maintain, operate, or sell any property acquired by the Corporation
pursuant to the provisions of this Act.
SEC. 303. MAXIMUM CONTINGENT LIABILITY.
(a) In General.--The maximum contingent liability of the Corporation
outstanding at any one time shall not exceed in the aggregate the
amount specified in subsection (b).
(b) Amount Specified.--
(1) Initial 5-year period.--The amount specified in this
subsection for the 5-year period beginning on the date of the
enactment of this Act, is $60,000,000,000.
(2) Subsequent 5-year periods.--Not later than 5 years after
the date of the enactment of this Act, and not less frequently
than every 5 years thereafter, the amount specified in
paragraph (1) shall be adjusted to reflect the percentage of
the increase (if any) in the average of the Consumer Price
Index during the preceding 5-year period.
(3) Consumer price index defined.--In this subsection, the
term ``Consumer Price Index'' means the most recent Consumer
Price Index for All Urban Consumers published by the Bureau of
Labor Statistics of the Department of Labor.
SEC. 304. CORPORATE FUNDS.
(a) Corporate Capital Account.--There is established in the Treasury
of the United States a fund to be known as the ``Corporate Capital
Account'' to carry out the purposes of the Corporation.
(b) Funding.--The Corporate Capital Account shall consist of--
(1) fees charged and collected pursuant to subsection (c);
(2) any amounts received pursuant to subsection (e);
(3) investments and returns on such investments pursuant to
subsection (g);
(4) unexpended balances transferred to the Corporation
pursuant to subsection (h);
(5) payments received in connection with settlements of all
insurance and reinsurance claims of the Corporation; and
(6) all other collections transferred to or earned by the
Corporation, excluding the cost, as defined in section 502 of
the Federal Credit Reform Act of 1990, of loans and loan
guaranties.
(c) Collections.--Fees may be charged and collected for providing
services in amounts to be determined by the Corporation as provided in
advance in appropriations Acts.
(d) Uses.--
(1) In general.--Subject to Acts making appropriations, the
Corporation is authorized to pay--
(A) the cost, as defined in section 502 of the
Federal Credit Reform Act of 1990, of loans and loan
guaranties;
(B) administrative expenses of the Corporation; and
(C) for the cost of providing support authorized by
subsections (c), (e), (f), and (g) of section 201.
(2) Income and revenue.--In order to carry out the purposes
of the Corporation, all collections transferred to or earned by
the Corporation, excluding the cost, as defined in section 502
of the Federal Credit Reform Act of 1990, of loans and loan
guaranties, shall be deposited into the Corporate Capital
Account and shall be available to carry out its purpose,
including without limitation--
(A) payment of all insurance and reinsurance claims
of the Corporation;
(B) repayments to the Treasury of amounts borrowed
under subsection (e);
(C) dividend payments to the Treasury under
subsection (f); and
(D) project-specific transaction costs.
(e) Full Faith and Credit.--
(1) In general.--All support provided pursuant to predecessor
authorities or title II shall continue to constitute
obligations of the United States, and the full faith and credit
of the United States is hereby pledged for the full payment and
performance of such obligations.
(2) Authority to borrow.--The Corporation is authorized to
borrow from the Treasury such sums as may be necessary to
fulfill such obligations of the United States and any such
borrowing shall be at a rate determined by the Secretary of the
Treasury, taking into consideration the current average market
yields on outstanding marketable obligations of the United
States of comparable maturities, for a period jointly
determined by the Corporation and the Secretary, and subject to
such terms and conditions as the Secretary may require.
(f) Dividends.--The Board, in consultation with the Director of the
Office of Management and Budget, shall annually assess a dividend
payment to the Treasury if the Corporation's insurance portfolio is
more than 100 percent reserved.
(g) Investment Authority.--
(1) In general.--The Corporation may request the Secretary of
the Treasury to invest such portion of the Corporate Capital
Account as is not, in the Corporation's judgement, required to
meet the current needs of the Corporate Capital Account.
(2) Form of investments.--Such investments shall be made by
the Secretary of the Treasury in public debt obligations, with
maturities suitable to the needs of the Corporate Capital
Account, as determined by the Corporation, and bearing interest
at rates determined by the Secretary, taking into consideration
current market yields on outstanding marketable obligations of
the United States of comparable maturities.
(h) Transfer From Predecessor Agencies and Programs.--By the date end
of the transition period described in title VI, the unexpended
balances, assets, and responsibilities of any agency specified in the
plan required by section 602 shall be transferred to the Corporation.
(i) Transfer of Funds.--In order to carry out this Act, funds
authorized to be appropriated to carry out the Foreign Assistance Act
of 1961 may be transferred to the Corporation and funds authorized
appropriated to the Corporation may be transferred to the Department of
State and the United States Agency for International Development.
(j) Definition.--In this section, the term ``project-specific
transaction costs''--
(1) means those costs incurred by the Corporation for travel,
legal expenses, and direct and indirect costs incurred in
claims settlements associated with the provision of support
under title II and shall not be considered administrative
expenses for the purposes of this section; and
(2) does not include information technology (as such term is
defined in section 11101 of title 40, United States Code).
SEC. 305. COORDINATION WITH OTHER DEVELOPMENT AGENCIES.
It is the sense of Congress that the Corporation should use relevant
data of the Department of State, Millennium Challenge Corporation,
United States Agency for International Development, and other
departments and agencies that have development functions to better
inform the decisions of the Corporation with respect to providing
support under title II.
TITLE IV--MONITORING, EVALUATION, AND REPORTING
SEC. 401. ESTABLISHMENT OF RISK AND AUDIT COMMITTEES.
(a) In General.--To assist the Board to fulfill its duties and
responsibilities under section 201(a), the Corporation shall establish
a risk committee and an audit committee.
(b) Duties and Responsibilities of Risk Committee.--Subject to the
direction of the Board, the risk committee established under subsection
(a) shall have oversight responsibility of--
(1) formulating risk management policies of the operations of
the Corporation;
(2) reviewing and providing guidance on operation of the
Corporation's global risk management framework;
(3) developing policies for enterprise risk management,
monitoring, and management of strategic, reputational,
regulatory, operational, developmental, environmental, social,
and financial risks;
(4) developing the risk profile of the Corporation, including
a risk management and compliance framework and governance
structure to support such framework; and
(5) developing policies and procedures for assessing, prior
to providing, and during any period during which the
Corporation provides, support to any foreign entities, whether
such entities have in place sufficient enhanced due diligence
policies and practices to prevent money laundering and
corruption to ensure the Corporation does not provide support
to persons that are--
(A) knowingly engaging in acts of corruption;
(B) knowingly providing material or financial support
for terrorism, drug trafficking, or human trafficking;
or
(C) responsible for ordering or otherwise directing
serious or gross violations of human rights.
(c) Duties and Responsibilities of Audit Committee.--Subject to the
direction of the Board, the audit committee established under
subsection (a) shall have the oversight responsibility of--
(1) the integrity of the Corporation's financial reporting
and systems of internal controls regarding finance and
accounting;
(2) the integrity of the Corporation's financial statements;
(3) the performance of the Corporation's internal audit
function; and
(4) compliance with legal and regulatory requirements related
to the finances of the Corporation.
SEC. 402. PERFORMANCE MEASURES.
(a) In General.--The Corporation shall develop a performance
measurement system to evaluate and monitor projects supported by the
Corporation under title II and to guide future projects of the
Corporation.
(b) Considerations.--In developing the performance measurement system
required by subsection (a), the Corporation shall--
(1) develop a successor for the development impact
measurement system of the Overseas Private Investment
Corporation (as such system was in effect on the day before the
date of enactment of this Act);
(2) develop a mechanism for ensuring that support provided by
the Corporation under title II is in addition to private
investment;
(3) develop standards for, and a method for ensuring,
appropriate financial performance of the Corporation's
portfolio; and
(4) develop standards for, and a method for ensuring,
appropriate development performance of the Corporation's
portfolio, including--
(A) measurement of the projected and ex post
development impact of a project; and
(B) the information necessary to comply with section
403.
(c) Public Availability of Certain Information.--The Corporation
shall make available to the public on a regular basis information about
support provided by the Corporation under title II and performance
metrics about such support on a country-by-country basis.
(d) Collaboration.--In developing the performance measurement system
required by subsection (a), the Corporation shall consult with
stakeholders and other interested parties engaged in sustainable
economic growth and development.
SEC. 403. ANNUAL REPORT.
(a) In General.--After the end of each fiscal year, the Corporation
shall submit to the appropriate congressional committees a complete and
detailed report of its operations during that fiscal year, including an
assessment of--
(1) the economic and social development impact, including
with respect to matters described in subsections (d) and (e) of
section 501, of projects supported by the Corporation under
title II;
(2) the extent to which the operations of the Corporation
complement or are compatible with the development assistance
programs of the United States and qualifying sovereign
entities;
(3) the Corporation's institutional linkages with other
relevant United States Government department and agencies,
including efforts to strengthen such linkages; and
(4) the compliance of projects supported by the Corporation
under title II with all relevant human rights, environmental,
labor, and social policies, or other such related policies that
govern the Corporation's support for projects, promulgated or
otherwise administered by the Corporation.
(b) Elements.--Each annual report required by subsection (a) shall
include projections of the effects of projects supported by the
Corporation under title II, including--
(1) reviews and analysis of--
(A) the desired development and whether or not the
Corporation is meeting the associated metrics, goals,
and development objectives, including, to the extent
practicable, in the years after conclusion of projects;
and
(B) the effect of the Corporation's support on access
to capital and ways in which the Corporation is
addressing identifiable market gaps or inefficiencies
and what impact, if any, such support has on access to
credit for a specific project, country, or sector;
(2) an explanation of any partnership arrangement or
cooperation with a qualifying sovereign entity in support of
each project;
(3) projections of--
(A) development outcomes, and whether or not support
for projects are meeting the associated performance
measures, both during the start-up phase and over the
duration of the support, and to the extent practicable,
measures of such development outcomes should be on a
gender-disaggregated basis, such as changes in
employment, access to financial services, enterprise
development and growth, and composition of executive
boards and senior leadership of enterprises receiving
support under title II; and
(B) the amount of private sector assets brought to
bear relative to the amount of support provided by the
Corporation and any other public sector support; and
(4) an assessment of the extent to which lessons learned from
the monitoring and evaluation activities of the Corporation,
and from annual reports from previous years compiled by the
Corporation, have been applied to projects.
SEC. 404. PUBLICLY AVAILABLE PROJECT INFORMATION.
The Corporation shall--
(1) maintain a user-friendly, publicly available, machine-
readable database with detailed country-level information,
including a description of the support provided by the
Corporation under title II; and
(2) include a clear link to information about each project
supported by the Corporation under title II on the internet
website of the Department of State, ``ForeignAssistance.gov'',
or a successor website or other online publication.
SEC. 405. ENGAGEMENT WITH INVESTORS.
(a) In General.--The Corporation, acting through the Chief
Development Officer, shall, in cooperation with the Administrator of
the United States Agency for International Development--
(1) develop a strategic relationship with private sector
entities focused at the nexus of business opportunities and
development priorities;
(2) engage such entities and reduce business risks primarily
through direct transaction support and facilitating investment
partnerships;
(3) develop and support tools, approaches, and intermediaries
that can mobilize private finance at scale in the developing
world;
(4) pursue projects of all sizes, especially those that are
small but designed for work in the most underdeveloped areas,
including countries with chronic suffering as a result of
extreme poverty, fragile institutions, or a history of
violence; and
(5) pursue projects consistent with the policy of the United
States described in section 101 and the Joint Strategic Plan
and the Mission Country Development Cooperation Strategies of
the United States Agency for International Development.
(b) Assistance.--To achieve the goals described in subsection (a),
the Corporation shall--
(1) develop risk mitigation tools;
(2) provide transaction structuring support for blended
finance models;
(3) support intermediaries linking capital supply and demand;
(4) coordinate with other Federal agencies to support or
accelerate transactions;
(5) convene financial, donor, civil society, and public
sector partners around opportunities for private finance within
development priorities;
(6) offer strategic planning and programming assistance to
catalyze investment into priority sectors;
(7) provide transaction structuring support;
(8) deliver training and knowledge management tools for
engaging private investors;
(9) partner with private sector entities that provide access
to capital and expertise; and
(10) identify and screen new investment partners.
(c) Technical Assistance.--The Corporation shall coordinate with the
United States Agency for International Development and other agencies
and departments, as necessary, on projects and programs supported by
the Corporation that include technical assistance.
SEC. 406. NOTIFICATION OF SUPPORT TO BE PROVIDED BY THE CORPORATION.
(a) In General.--Not later than 15 days prior to the Corporation
making a financial commitment associated with the provision of support
under title II in an amount in excess of $10,000,000, the Chief
Executive Officer of the Corporation shall submit to the Committee on
Foreign Affairs and the Committee on Appropriations of the House of
Representatives and the Committee on Foreign Relations and the
Committee on Appropriations of the Senate a report in writing that
contains the information required by subsection (b).
(b) Information Required.--The information required by this
subsection includes--
(1) the amount of each such financial commitment;
(2) an identification of the recipient or beneficiary; and
(3) a description of the project, activity, or asset and the
development goal or purpose to be achieved by providing support
by the Corporation.
TITLE V--CONDITIONS, RESTRICTIONS, AND PROHIBITIONS
SEC. 501. LIMITATIONS AND PREFERENCES.
(a) Limitation on Support for Single Entity.--No entity receiving
support from the Corporation under title II may receive more than an
amount equal to 5 percent of the Corporation's maximum contingent
liability authorized under section 303.
(b) Preference for Support for Projects Sponsored by United States
Persons.--
(1) In general.--The Corporation should give preferential
consideration to projects sponsored by or involving private
sector entities that are United States persons.
(2) United states person defined.--In this subsection, the
term ``United States person'' means--
(A) a United States citizen; or
(B) an entity significantly beneficially owned by
individuals described in subparagraph (A).
(c) Preference for Support in Countries in Compliance With
International Trade Obligations.--
(1) Consultations with united states trade representative.--
Not less frequently than annually, the Corporation shall
consult with the United States Trade Representative with
respect to the status of countries eligible to receive support
from the Corporation under title II and the compliance of those
countries with their international trade obligations.
(2) Preferential consideration.--The Corporation shall give
preferential consideration to providing support under title II
for projects in countries in compliance with or making
substantial progress coming into compliance with their
international trade obligations.
(d) Worker Rights.--
(1) In general.--The Corporation should support projects
under title II in countries that are taking steps to adopt and
implement laws that extend internationally recognized worker
rights (as defined in section 507 of the Trade Act of 1974 (19
U.S.C. 2467)) to workers in that country, including any
designated zone in that country.
(2) Required contract language.--The Corporation shall also
include the following language, in substantially the following
form, in all contracts which the Corporation enters into with
eligible investors to provide support under title II: ``The
investor agrees not to take actions to prevent employees of the
foreign enterprise from lawfully exercising their right of
association and their right to organize and bargain
collectively. The investor further agrees to observe applicable
laws relating to a minimum age for employment of children,
acceptable conditions of work with respect to minimum wages,
hours of work, and occupational health and safety, and not to
use forced labor or the worst forms of child labor (as defined
in section 507 of the Trade Act of 1974 (19 U.S.C. 2467(6))).
The investor is not responsible under this paragraph for the
actions of a foreign government.''.
(e) Environmental and Social Impact.--The Board shall not vote in
favor of any project proposed to be supported by the Corporation under
title II that is likely to have significant adverse environmental or
social impacts that are sensitive, diverse, or unprecedented, unless--
(1) at least 60 days before the date of the vote, an
environmental and social impact assessment or initial
environmental and social audit, analyzing the environmental and
social impacts of the proposed project and of alternatives to
the proposed project, is completed; and
(2) such assessment or audit has been made available to the
public of the United States, locally affected groups in the
country in which the project will be carried out, and
nongovernmental organizations in that country.
(f) Women's Economic Empowerment.--In utilizing its authorities under
title II, the Corporation should consider the impacts of its support on
women's economic opportunities and outcomes and make efforts to
mitigate gender gaps and maximize development impact by working to
improve women's economic opportunities.
(g) Preference for Provision of Support in Countries Embracing
Private Enterprise.--
(1) In general.--The Corporation should give preferential
consideration to projects for which support under title II may
potentially be provided in countries the governments of which
are making continual progress toward economic policies that
promote the development of private enterprise, both domestic
and foreign, and maintaining the conditions that enable private
enterprise to make its full contribution to the development of
such countries, including--
(A) market-based economies;
(B) protecting private property rights;
(C) respect for the rule of law; and
(D) systems to combat corruption and bribery.
(2) Sources of information.--The Corporation should rely on
both third-party indicators and United States Government
information, such as the Department of State's Investment
Climate Statements, the Department of Commerce's Country
Commercial Guides, or the Millennium Challenge Corporation's
Constraints Analysis, to assess whether countries meet the
conditions described in paragraph (1).
(h) Consideration of Foreign Boycott Participation.--In providing
support under for projects under title II, the Corporation shall
consider, using information readily available, whether the project is
sponsored by or substantially affiliated with any person taking or
knowingly agreeing to take actions, or having taken or knowingly agreed
to take actions within the past three years, which demonstrate or
otherwise evidence intent to comply with, further, or support any
boycott fostered or imposed by any foreign country, or request to
impose any boycott by any foreign country, against a country which is
friendly to the United States and which is not itself the object of any
form of boycott pursuant to United States law or regulation.
SEC. 502. ADDITIONALITY AND AVOIDANCE OF MARKET DISTORTION.
(a) In General.--Before the Corporation provides support for a
project under title II, the Corporation shall ensure that private
sector entities are afforded an opportunity to support the project.
(b) Safeguards, Policies, and Guidelines.--The Corporation shall
develop appropriate safeguards, policies, and guidelines to ensure that
support provided by the Corporation under title II--
(1) supplements and encourages, but does not compete with,
private sector support;
(2) operates according to internationally recognized best
practices and standards with respect to ensuring the avoidance
of market distorting government subsidies and the crowding out
of private sector lending; and
(3) does not have a significant adverse impact on United
States employment.
SEC. 503. PROHIBITION ON SUPPORT IN SANCTIONED COUNTRIES AND WITH
SANCTIONED PERSONS.
(a) In General.--The Corporation is prohibited from providing support
under title II in a country the government of which the Secretary of
State has determined has repeatedly provided support for acts of
international terrorism for purposes of--
(1) section 6(j)(1)(A) of the Export Administration Act of
1979 (50 U.S.C. 4605(j)(1)(A)) (as continued in effect pursuant
to the International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.));
(2) section 620A(a) of the Foreign Assistance Act of 1961 (22
U.S.C. 2371(a));
(3) section 40(d) of the Arms Export Control Act (22 U.S.C.
2780(d)); or
(4) any other provision of law.
(b) Prohibition on Support of Sanctioned Persons.--The Corporation is
prohibited from supporting a project under title II that directly
benefits any entity subject to sanctions imposed by the United States.
(c) Prohibition on Support of Activities Subject to Sanctions.--The
Corporation shall require any entity or party receiving support under
title II to certify it, any entity owned or controlled by the entity or
party, or any entity or party which owns or otherwise manages the
entity or party receiving support, does not conduct any activities
subject to sanctions imposed by the United States.
SEC. 504. PENALTIES FOR MISREPRESENTATION, FRAUD, AND BRIBERY.
Subsections (g), (l), and (n) of section 237 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2197) shall apply with respect to the
Corporation to the same extent and in the same manner as such
subsections applied with respect to the Overseas Private Investment
Corporation on the day before the date of the enactment of this Act.
TITLE VI--TRANSITIONAL PROVISIONS
SEC. 601. DEFINITIONS.
In this title:
(1) Agency.--The term ``agency'' includes any entity,
organizational unit, program, or function.
(2) Transition period.--The term ``transition period'' means
the period--
(A) beginning on the date of the enactment of this
Act; and
(B) ending on the effective date of the
reorganization plan required by section 602(e).
SEC. 602. REORGANIZATION PLAN.
(a) Submission of Plan.--
(1) In general.--Not later than 120 days after the date of
the enactment of this Act, the President shall transmit to the
appropriate congressional committees a reorganization plan
regarding the following:
(A) The transfer of agencies, personnel, assets, and
obligations to the Corporation pursuant to this title.
(B) Any consolidation, reorganization, or
streamlining of agencies transferred to the Corporation
pursuant to this title.
(C) Any efficiencies or cost savings achieved as a
result of the transfer of agencies, personnel, assets,
and obligations to the Corporation pursuant to this
title, including reductions in unnecessary or
duplicative operations, assets, and personnel.
(2) Consultation.--Not later than 15 days before the date on
which the plan is transmitted pursuant to this subsection, the
President shall consult with the appropriate congressional
committees on such plan.
(b) Plan Elements.--The plan transmitted under subsection (a) shall
contain, consistent with this Act, such elements as the President deems
appropriate, including the following:
(1) Identification of any functions of agencies transferred
to the Corporation pursuant to this title that will not be
transferred to the Corporation under the plan.
(2) Specification of the steps to be taken to organize the
Corporation, including the delegation or assignment of
functions transferred to the Corporation among officers of the
Corporation in order to permit the Corporation to carry out the
functions transferred under the plan.
(3) Specification of the funds available to each agency that
will be transferred to the Corporation as a result of transfers
under the plan.
(4) Specification of the proposed allocations within the
Corporation of unexpended funds transferred in connection with
transfers under the plan.
(5) Specification of any proposed disposition of property,
facilities, contracts, records, and other assets and
obligations of agencies transferred under the plan.
(c) Report on Coordination.--
(1) In general.--The transfer of functions authorized by this
section may occur only after the President and Chief Executive
Officer of the Overseas Private Investment Corporation and the
Administrator of the United States Agency for International
Development jointly submit to the Committee on Foreign Affairs
and Committee on Appropriations of the House of Representatives
and Committee on Foreign Relations and Committee on
Appropriations of the Senate a report in writing that contains
the information required by paragraph (2).
(2) Information required.--The information required by this
paragraph includes a description in detail of the procedures to
be followed after the transfer of functions authorized by this
section have occurred to coordinate between the Corporation and
the United States Agency for International Development in
carrying out the functions so transferred.
(d) Modification of Plan.--The President may, on the basis of
consultations with the appropriate congressional committees, modify or
revise any part of the plan until that part of the plan becomes
effective in accordance with subsection (e).
(e) Effective Date.--
(1) In general.--The reorganization plan described in this
section, including any modifications or revisions of the plan
under subsection (c), shall become effective for an agency on
the date specified in the plan (or the plan as modified
pursuant to subsection (d)), except that such date may not be
earlier than 90 days after the date the President has
transmitted the reorganization plan to the appropriate
congressional committees pursuant to subsection (a).
(2) Statutory construction.--Nothing in this subsection may
be construed to require the transfer of functions, personnel,
records, balances of appropriations, or other assets of an
agency on a single date.
SEC. 603. TRANSFER OF FUNCTIONS.
(a) In General.--Effective at the end of the transition period, there
shall be transferred to the Corporation the functions, personnel,
assets, and liabilities of--
(1) the Overseas Private Investment Corporation, as in
existence on the day before the date of the enactment of this
Act; and
(2) the following elements of the United States Agency for
International Development:
(A) The Development Credit Authority.
(B) The existing Legacy Credit portfolio under the
Urban Environment Program and any other direct loan
programs and non-Development Credit Authority guaranty
programs authorized by the Foreign Assistance Act of
1961 (22 U.S.C. 2151 et seq.) or other predecessor
Acts, as in existence on the date of the enactment of
this Act, other than any sovereign loan guaranties.
(b) Additional Transfer Authority.--Effective at the end of the
transition period, there is authorized to be transferred to the
Corporation the functions, personnel, assets, and liabilities of the
following elements of the United States Agency for International
Development:
(1) The Office of Private Capital and Microenterprise.
(2) The enterprise funds.
(c) Sovereign Loan Guaranty Transfer.--
(1) In general.--Effective at the end of the transition
period, there is authorized to be transferred to the
Corporation or any other appropriate department or agency of
the United States Government the loan accounts and the legal
rights and responsibilities for the sovereign loan guaranty
portfolio held by the United States Agency for International
Development as in existence on the day before the date of the
enactment of this Act.
(2) Inclusion in reorganization plan.--The President shall
include in the reorganization plan submitted under section 602
a description of the transfer authorized under paragraph (1).
(d) Bilateral Agreements.--Any bilateral agreement of the United
States in effect on the date of the enactment of this Act that serves
as the basis for programs of the Overseas Private Investment
Corporation and the Development Credit Authority shall be considered as
satisfying the requirements of section 301(a).
(e) Transition.--During the transition period, the agencies specified
in subsection (a) shall--
(1) continue to administer the assets and obligations of
those agencies; and
(2) carry out such programs and activities authorized under
this Act as may be determined by the President.
SEC. 604. TERMINATION OF OVERSEAS PRIVATE INVESTMENT CORPORATION AND
OTHER SUPERCEDED AUTHORITIES.
Effective at the end of the transition period--
(1) the Overseas Private Investment Corporation is
terminated; and
(2) title IV of chapter 2 of part I of the Foreign Assistance
Act of 1961 (22 U.S.C. 2191 et seq.) (other tan subsections
(g), (l), and (n) of section 237 of that Act) is repealed.
SEC. 605. TRANSITIONAL AUTHORITIES.
(a) Provision of Assistance by Officials.--Until the transfer of an
agency to the Corporation under section 603, any official having
authority over or functions relating to the agency immediately before
the date of the enactment of this Act shall provide to the Corporation
such assistance, including the use of personnel and assets, as the
Corporation may request in preparing for the transfer and integration
of the agency into the Corporation.
(b) Services and Personnel.--During the transition period, upon the
request of the Corporation, the head of any executive agency may, on a
reimbursable or non-reimbursable basis, provide services or detail
personnel to assist with the transition.
(c) Acting Officials.--
(1) In general.--During the transition period, pending the
advice and consent of the Senate to the appointment of an
officer required by this Act to be appointed by and with such
advice and consent, the President may designate any officer
whose appointment was required to be made by and with such
advice and consent and who was such an officer immediately
before the date of the enactment of this Act (and who continues
in office) or immediately before such designation, to act in
such office until the same is filled as provided in this Act.
While so acting, such officers shall receive compensation at
the higher of--
(A) the rates provided by this Act for the respective
offices in which they act; or
(B) the rates provided for the offices held at the
time of designation.
(2) Rule of construction.--Nothing in this Act shall be
construed to require the advice and consent of the Senate to
the appointment by the President to a position in the
Corporation of any officer whose agency is transferred to the
Corporation pursuant to this title and whose duties following
such transfer are germane to those performed before such
transfer.
(d) Transfer of Personnel, Assets, Obligations, and Functions.--Upon
the transfer of an agency to the Corporation under section 603--
(1) the personnel, assets, and obligations held by or
available in connection with the agency shall be transferred to
the Corporation for appropriate allocation, subject to the
approval of the Director of the Office of Management and Budget
and in accordance with section 1531(a)(2) of title 31, United
States Code; and
(2) the Corporation shall have all functions--
(A) relating to the agency that any other official
could by law exercise in relation to the agency
immediately before such transfer; and
(B) vested in the Corporation by this Act or other
law.
SEC. 606. SAVINGS PROVISIONS.
(a) Completed Administrative Actions.--
(1) In general.--Completed administrative actions of an
agency shall not be affected by the enactment of this Act or
the transfer of such agency to the Corporation under section
603, but shall continue in effect according to their terms
until amended, modified, superseded, terminated, set aside, or
revoked in accordance with law by an officer of the United
States or a court of competent jurisdiction, or by operation of
law.
(2) Completed administrative action defined.--In this
subsection, the term ``completed administrative action''
includes orders, determinations, rules, regulations, personnel
actions, permits, agreements, grants, contracts, certificates,
policies, licenses, registrations, and privileges.
(b) Pending Proceedings.--
(1) In general.--Pending proceedings in an agency, including
notices of proposed rulemaking, and applications for licenses,
permits, certificates, grants, and financial assistance, shall
continue notwithstanding the enactment of this Act or the
transfer of the agency to the Corporation, unless discontinued
or modified under the same terms and conditions and to the same
extent that such discontinuance could have occurred if such
enactment or transfer had not occurred.
(2) Orders.--Orders issued in proceedings described in
paragraph (1), and appeals therefrom, and payments made
pursuant to such orders, shall issue in the same manner and on
the same terms as if this Act had not been enacted or the
agency had not been transferred, and any such orders shall
continue in effect until amended, modified, superseded,
terminated, set aside, or revoked by an officer of the United
States or a court of competent jurisdiction, or by operation of
law.
(c) Pending Civil Actions.--Pending civil actions shall continue
notwithstanding the enactment of this Act or the transfer of an agency
to the Corporation, and in such civil actions, proceedings shall be
had, appeals taken, and judgments rendered and enforced in the same
manner and with the same effect as if such enactment or transfer had
not occurred.
(d) References.--References relating to an agency that is transferred
to the Corporation under section 603 in statutes, Executive orders,
rules, regulations, directives, or delegations of authority that
precede such transfer or the date of the enactment of this Act shall be
deemed to refer, as appropriate, to the Corporation, to its officers,
employees, or agents, or to its corresponding organizational units or
functions. Statutory reporting requirements that applied in relation to
such an agency immediately before the effective date of this Act shall
continue to apply following such transfer if they refer to the agency
by name.
(e) Employment Provisions.--
(1) Regulations.--The Corporation may, in regulations
prescribed jointly with the Director of the Office of Personnel
Management, adopt the rules, procedures, terms, and conditions,
established by statute, rule, or regulation before the date of
the enactment of this Act, relating to employment in any agency
transferred to the Corporation under section 603.
(2) Effect of transfer on conditions of employment.--Except
as otherwise provided in this Act, or under authority granted
by this Act, the transfer pursuant to this title of personnel
shall not alter the terms and conditions of employment,
including compensation, of any employee so transferred.
(f) Statutory Reporting Requirements.--Any statutory reporting
requirement that applied to an agency transferred to the Corporation
under this title immediately before the date of the enactment of this
Act shall continue to apply following that transfer if the statutory
requirement refers to the agency by name.
SEC. 607. OTHER TERMINATIONS.
Except as otherwise provided in this Act, whenever all the functions
vested by law in any agency have been transferred pursuant to this
title, each position and office the incumbent of which was authorized
to receive compensation at the rates prescribed for an office or
position at level II, III, IV, or V of the Executive Schedule under
subchapter II of chapter 53 of title 5, United States Code, shall
terminate.
SEC. 608. INCIDENTAL TRANSFERS.
The Director of the Office of Management and Budget, in consultation
with the Corporation, is authorized and directed to make such
additional incidental dispositions of personnel, assets, and
liabilities held, used, arising from, available, or to be made
available, in connection with the functions transferred by this title,
as the Director may determine necessary to accomplish the purposes of
this Act.
SEC. 609. REFERENCE.
With respect to any function transferred under this title (including
under a reorganization plan under section 602) and exercised on or
after the date of the enactment of this Act, reference in any other
Federal law to any department, commission, or agency or any officer or
office the functions of which are so transferred shall be deemed to
refer to the Corporation or official or component of the Corporation to
which that function is so transferred.
SEC. 610. CONFORMING AMENDMENTS.
(a) Exempt Programs.--Section 255(g)(2) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 905(g)(2)) is amended
by striking ``Overseas Private Investment Corporation, Noncredit
Account (71-4184-0-3-151).'' and inserting ``United States
International Development Finance Corporation.''.
(b) Executive Schedule.--Title 5, United States Code, is amended--
(1) in section 5314, by striking ``President, Overseas
Private Investment Corporation.'';
(2) in section 5315, by striking ``Executive Vice President,
Overseas Private Investment Corporation.''; and
(3) in section 5316, by striking ``Vice Presidents, Overseas
Private Investment Corporation (3).''.
(c) Office of International Trade of the Small Business
Administration.--Section 22 of the Small Business Act (15 U.S.C. 649)
is amended--
(1) in subsection (b), in the matter preceding paragraph (1),
by striking ``the President of the Overseas Private Investment
Corporation, Director'' and inserting ``the Board of Directors
of the United States International Development Finance
Corporation, the Director''; and
(2) by striking ``Overseas Private Investment Corporation''
each place it appears and inserting ``United States
International Development Finance Corporation''.
(d) United States and Foreign Commercial Service.--Section 2301 of
the Export Enhancement Act of 1988 (15 U.S.C. 4721) is amended by
striking ``Overseas Private Investment Corporation'' each place it
appears and inserting ``United States International Development Finance
Corporation''.
(e) Trade Promotion Coordinating Committee.--Section 2312(d)(1)(K) of
the Export Enhancement Act of 1988 (15 U.S.C. 4727(d)(1)(K)) is amended
by striking ``Overseas Private Investment Corporation'' and inserting
``United States International Development Finance Corporation''.
(f) Interagency Trade Data Advisory Committee.--Section 5402(b) of
the Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 4902(b))
is amended by striking ``the President of the Overseas Private
Investment Corporation'' and inserting ``the Chief Executive Officer of
the United States International Development Finance Corporation''.
(g) Misuse of Names of Federal Agencies.--Section 709 of title 18,
United States Code, is amended by striking ```Overseas Private
Investment', `Overseas Private Investment Corporation', or `OPIC',''
and inserting ```United States International Development Finance
Corporation' or `DFC'''.
(h) Engagement on Currency Exchange Rate and Economic Policies.--
Section 701(c)(1)(A) of the Trade Facilitation and Trade Enforcement
Act of 2015 (19 U.S.C. 4421(c)(1)(A)) is amended by striking ``Overseas
Private Investment Corporation'' and inserting ``United States
International Development Finance Corporation''.
(i) Internships With Institute for International Public Policy.--
Section 625(a) of the Higher Education Act of 1965 (20 U.S.C. 1131c(a))
is amended by striking ``Overseas Private Investment Corporation'' and
inserting ``United States International Development Finance
Corporation''.
(j) Foreign Assistance Act of 1961.--The Foreign Assistance Act of
1961 (22 U.S.C. 2151 et seq.) is amended--
(1) in section 499B(b)(2) (22 U.S.C. 2296b(b)(2)), by
striking ``Overseas Private Investment Corporation'' and
inserting ``United States International Development Finance
Corporation''; and
(2) in section 481(e)(4)(A) (22 U.S.C. 2291(e)(4)(A)), in the
matter preceding clause (i), by striking ``(including programs
under title IV of chapter 2, relating to the Overseas Private
Investment Corporation)'' and inserting ``(and any support
under title II of the Better Utilization of Investments Leading
to Development Act of 2018, relating to the United States
International Development Finance Corporation)''.
(k) Electrify Africa Act of 2015.--Sections 5 and 7 of the Electrify
Africa Act of 2015 (Public Law 114-121; 22 U.S.C. 2293 note) are
amended by striking ``Overseas Private Investment Corporation'' each
place it appears and inserting ``United States International
Development Finance Corporation''.
(l) Foreign Aid Transparency and Accountability Act of 2016.--Section
2(3) of the Foreign Aid Transparency and Accountability Act of 2016
(Public Law 114-191; 22 U.S.C. 2394c note) is amended--
(1) in subparagraph (A), by striking ``except for'' and all
that follows through ``chapter 3'' and inserting ``except for
chapter 3'';
(2) in subparagraph (C), by striking ``and'' at the end;
(3) in subparagraph (D), by striking the period at the end
and insert ``; and''; and
(4) by adding at the end the following:
``(E) the Better Utilization of Investments Leading
to Development Act of 2018.''.
(m) Support for East European Democracy (SEED) Program.--The Support
for East European Democracy (SEED) Act of 1989 (22 U.S.C. 5401 et seq.)
is amended--
(1) in section 2(c) (22 U.S.C. 5401(c)), by striking
paragraph (12) and inserting the following:
``(12) United states international development finance
corporation.--Programs of the United States International
Development Finance Corporation.''; and
(2) in section 201(e) (22 U.S.C. 5421(e)), by striking
``Agency for International Development'' and inserting ``United
States International Development Finance Corporation''.
(n) Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996.--
Section 202(b)(2)(B)(iv) of the Cuban Liberty and Democratic Solidarity
(LIBERTAD) Act of 1996 (22 U.S.C. 6062(b)(2)(B)(iv)) is amended by
striking ``Overseas Private Investment Corporation'' and inserting
``United States International Development Finance Corporation''.
(o) International Religious Freedom Act of 1998.--Section 405(a)(10)
of the International Religious Freedom Act of 1998 (22 U.S.C.
6445(a)(10)) is amended by striking ``Overseas Private Investment
Corporation'' and inserting ``United States International Development
Finance Corporation''.
(p) Trafficking Victims Protection Act of 2000.--Section 103(8)(A) of
the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7102(8)(A))
is amended by amending clause (viii) to read as follows:
``(viii) any support under title II of the
Better Utilization of Investments Leading to
Development Act of 2018 relating to the United
States International Development Finance
Corporation; and''.
(q) Technology Deployment in Developing Countries.--Section 732(b) of
the Global Environmental Protection Assistance Act of 1989 (22 U.S.C.
7902(b)) is amended by striking ``Overseas Private Investment
Corporation'' and inserting ``United States International Development
Finance Corporation''.
(r) Expanded Nonmilitary Assistance for Ukraine.--Section 7(c)(3) of
the Ukraine Freedom Support Act of 2014 (22 U.S.C. 8926(c)(3)) is
amended--
(1) in the matter preceding subparagraph (A), by striking
``Overseas Private Investment Corporation'' and inserting
``United States International Development Finance
Corporation''; and
(2) in subparagraph (B), by striking ``by eligible investors
(as defined in section 238 of the Foreign Assistance Act of
1961 (22 U.S.C. 2198))''.
(s) Global Food Security Act of 2016.--Section 4(7) of the Global
Food Security Act of 2016 (22 U.S.C. 9303(7)) is amended by striking
``Overseas Private Investment Corporation'' and inserting ``United
States International Development Finance Corporation''.
(t) Sense of Congress on European and Eurasian Energy Security.--
Section 257(c)(2)(B) of the Countering Russian Influence in Europe and
Eurasia Act of 2017 (22 U.S.C. 9546(c)(2)(B)) is amended by striking
``Overseas Private Investment Corporation'' and inserting ``United
States International Development Finance Corporation''.
(u) Wholly Owned Government Corporation.--Section 9101(3) of title
31, United States Code, is amended by striking ``Overseas Private
Investment Corporation'' and inserting ``United States International
Development Finance Corporation''.
(v) Energy Independence and Security Act of 2007.--Title IX of the
Energy Independence and Security Act of 2007 (42 U.S.C. 17321 et seq.)
is amended--
(1) in section 914 (42 U.S.C. 17334)--
(A) in the section heading, by striking ``overseas
private investment corporation'' and inserting ``united
states international development finance corporation'';
(B) in subsection (a), in the matter preceding
paragraph (1), by striking ``Overseas Private
Investment Corporation'' and inserting ``United States
International Development Finance Corporation''; and
(C) in subsection (b), in the matter preceding
paragraph (1), by striking ``Overseas Private
Investment Corporation shall include in its annual
report required under section 240A of the Foreign
Assistance Act of 1961 (22 U.S.C. 2200a)'' and
inserting ``United States International Development
Finance Corporation shall include in its annual report
required under section 403 of the Better Utilization of
Investments Leading to Development Act of 2018''; and
(2) in section 916(a)(2)(I) (42 U.S.C. 17336(a)(2)(I)), by
striking ``Overseas Private Investment Corporation:'' and
inserting ``United States International Development Finance
Corporation;''.
(w) Effective Date.--The amendments made by this section shall take
effect at the end of the transition period.
Summary and Purpose
H.R. 5105, the bipartisan and bicameral Better Utilization
of Investments Leading to Development Act of 2018 (or the BUILD
Act of 2018), as amended, would reform and consolidate the
authorities of the Overseas Private Investment Corporation
(OPIC), the United States Agency for International Development
(USAID), Development Credit Authority (DCA), and the Enterprise
Funds into a single full-service, self-sustaining United States
International Development Finance Corporation (DFC). Through
the provision of loans, guaranties, limited equity investments,
feasibility studies, political risk insurance, and other
instruments of support, the new DFC will mobilize private
capital in furtherance of America's foreign policy and
development objectives in the world's less developed countries.
Background and Need for the Legislation
Across the globe, lack of access to capital often
constrains economic growth--especially in the world's least
developed countries. According to the International Finance
Corporation, micro-, small- and medium-sized enterprises in
emerging markets have unmet financing needs of $5.2 trillion
every year. This lack of access to capital limits their ability
to grow. Foreign investment is critical to empowering
entrepreneurs, creating jobs and reducing poverty.
America has an undeniable interest in supporting the
development of vibrant and stable economies around the world.
Healthy private sectors promote good governance, support
thriving civil societies, and help reduce civil strife. The
resulting stability is good for our national security, and also
benefits U.S. exports and jobs.
Increasingly, other countries are working to advance their
economic and political interests by shaping overseas markets.
China's ``One Belt, One Road'' (OBOR) initiative, which has
been estimated at $1 trillion or more, dwarfs the size of the
Marshall Plan which rebuilt war-torn Europe in the 1940s and
1950s. Across Africa, Asia and beyond, Beijing is making
massive investments in new construction and infrastructure
projects--from the headquarters of the African Union to a port
in Djibouti--a strategically located nation where both the U.S.
and China have military bases and whose foreign debt is 80
percent owned by Beijing. As Ray Washburne, the President and
CEO of OPIC, testified to the Foreign Affairs Committee on
April 11, 2018, ``a condition of many of these loans is that
Chinese firms--and labor--get the business. . . . This state-
directed approach is not consistent with our values, which
incorporate the high standards of international financial
institutions related to governance, transparency, debt
sustainability, environmental, and social safeguards.''
Chinese development practices have in some cases left
countries worse off. A study by the Center for Global
Development, which assessed the likelihood of debt problems in
68 countries identified as potential OBOR borrowers, concluded
that eight countries are at particular risk of debt distress
based on an identified pipeline of project lending associated
with OBOR. For example, in December 2017, Sri Lanka gave
control of the strategic Sri Lankan port of Hambantota to
Beijing for 99 years after it could not repay the Chinese-
backed loans to fund it, granting China a foothold in the
Indian Ocean and its critical shipping lanes.
In short, the committee is deeply concerned that China's
approach in the developing world is fueling debt dependency,
undermining good governance and human rights, and taking an
illiberal approach to regions that contain about 65 percent of
the world's population and one-third of its economic output.
In November 2017, at the Asia-Pacific Economic Cooperation
(APEC) Summit in Vietnam, the President committed to reforming
U.S. development-finance institutions ``so they better
incentivize private-sector investment'' and ``provide strong
alternatives to state-directed initiatives that come with many
strings attached.'' The President's National Security Strategy
also prioritized efforts to catalyze private sector activity
and the mobilization of resources to developing countries:
``Today, the United States must compete for positive
relationships around the world. China and Russia target
their investments in the developing world to expand
influence and gain competitive advantages against the
United States. China is investing billions of dollars
in infrastructure across the globe. Russia, too,
projects its influence economically, through the
control of key energy and other infrastructure
throughout parts of Europe and Central Asia.--The
United States provides an alternative to state-directed
investments, which often leave developing countries
worse off. The United States pursues economic ties not
only for market access but also to create enduring
relationships to advance common political and security
interests. . . .
``Across Africa, Latin America, and Asia, states are
eager for investments and financing to develop their
infrastructure and propel growth. The United States and
its partners have opportunities to work with countries
to help them realize their potential as prosperous and
sovereign states that are accountable to their people.
Such states can become trading partners that buy more
American-made goods and create more predictable
business environments that benefit American companies.
American-led investments represent the most sustainable
and responsible approach to development and offer a
stark contrast to the corrupt, opaque, exploitive, and
low-quality deals offered by authoritarian states.''
The U.S. cannot and should not match China's investments
dollar-for-dollar, but the committee believes we can and should
do more to support international economic development with
partners who have embraced the private sector-driven
development model. However, America's existing development
finance toolkit--which is spread across multiple agencies--is
limited, duplicative, disjointed and uncoordinated. The BUILD
Act will address these shortcomings and modernizes America's
antiquated development finance capabilities to address the
challenges of the 21st century. As Secretary of State Pompeo
testified before the committee, ``this is a very important
piece of legislation. I think there's real opportunity for the
United States . . . this bill hits it perfectly.''
Limitations. OPIC--America's development finance
institution (DFI)--operates under authorities that have changed
very little since it was created by Congress more than 45 years
ago. The Corporation provides direct loans, guaranties and
political risk insurance, but it lacks the authority to make
equity investments--an authority held by every other DFI around
the world. Because OPIC only provides a debt financing
instrument and must be repaid as a senior creditor, the U.S. is
often locked out of co-investment opportunities with like-
minded DFIs. This discourages other countries--such as the
United Kingdom and Japan--from partnering with OPIC on
projects. For this reason, the BUILD Act authorizes the new DFC
to make limited equity investments as a minority investor in
projects provided that certain conditions enumerated in the
bill are met, including selling equity investments as quickly
as is economically feasible. Further, the bill establishes a 30
percent per-project cap on equity authority and a total limit
on equity of not more than 35 percent of the Corporation's
aggregate exposure.
Additionally, OPIC lacks the ability to support feasibility
studies, project-related technical-assistance grants, and other
kinds of ``wrap around'' services for projects potentially
eligible for financing. The BUILD Act would authorize these new
activities.
The BUILD Act would also set the new DFC's maximum
contingent liability (MCL) at $60 billion--slightly more than
double OPIC's current statutory cap, which was set at $29
billion in 1997. This is necessary for three reasons. First,
OPIC is quickly nearing its cap. According to its FY 2017
Annual Report, OPIC had a total portfolio exposure of $23.2
billion, or 80 percent of its MCL. If OPIC's annual commitments
are consistent with its recent 5 year average (approximately
$3.7 billion), it should reach its MCL by FY 2019. Second, the
new MCL is critical to being able to compete with China. Even
if adjusted for inflation, OPIC's current cap would be
approximately $45 billion which still pales in comparison to
the China Development Bank's $1.6 trillion portfolio. Third,
the BUILD Act would automatically add approximately $3.6
billion in legacy liabilities from USAID on top of OPIC's $23.2
billion portfolio to the new DFC--totaling more than $26.8
billion in inherited liabilities. Thus, if the new MCL was
unchanged from OPIC's current exposure limit, the DFC would hit
the cap within its first year of existence. With a 7 year
authorization, the $60 billion cap will ensure that the new DFC
can continue to extend annual commitments consistent with its
recent 5 year average and provides for a modest buffer to
account for the Corporation's new instruments of support and
strong mandate.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Duplication. America's development finance toolkit is
duplicative across Federal agencies. For example, USAID's
Development Credit Authority and Enterprise Funds have the
ability to make guaranties and direct loans, respectively,
which are duplicative of OPIC's own authorities. Consolidating
these disparate functions under a single Development Finance
Corporation will improve efficiencies.
Disjointed and Uncoordinated. The committee has learned in
the course of its oversight activities that OPIC and USAID
staff have at times been unaware of what the other agency is
doing in a particular country. Moreover, effective use of DCA's
risk sharing program is often entirely dependent on whether
USAID's in-country Mission Director is aware of and understands
DCA's offerings. In order to ensure that the DFC and USAID are
not working at cross-purposes and support America's development
interests, the BUILD Act requires the Administrator of USAID to
serve as the Vice Chair of the DFC's Board of Directors. It
also establishes a Chief Development Officer, whose duties
include coordination with USAID (and other relevant agencies),
directly liaising with USAID missions, and ensuring that all
relevant departments, agencies, and missions have awareness of,
training with respect to, and access to the Corporation's tools
in relation to development policy and projects. This is
especially important since OPIC currently has just three staff
posted overseas. The new DFC will therefore empower USAID's
employees in the field with awareness of and access to the
DFC's full-suite of financial tools for developmental projects.
Similarly, the new DFC will have stronger linkages to Foreign
Service Officers and other employees of USAID, the State
Department, the Commerce Department, and the Agriculture
Department working in countries where DFC support will be
provided.
BUILD Act Reforms. The President's FY 2019 Budget proposes
to consolidate U.S. development finance agencies and functions,
such as OPIC and DCA into a single, consolidated DFI with more
modern and effective tools and reforms to protect taxpayer
dollars. The BUILD Act, as amended, will help effectuate this
proposal and also includes critical reforms to OPIC and USAID's
current functions in order to protect taxpayers, improve
accountability to Congress, and ensure that the DFC can
effectively carry out its mandate, including:
1) LA clear statement of policy that the United States
will facilitate private sector development and economic
growth to provide countries a robust alternative to
state-directed investments by authoritarian governments
and United States strategic competitors (such as China)
using high standards of transparency, environmental,
and social safeguards, and which take into account the
debt sustainability of partner countries;
2) LRequiring that the Corporation prioritizes its
support in less developed countries with a low-income
economy or a low-middle-income economy according to
World Bank standards;
3) LRequiring that non-government members of the
Corporation's Board of Directors are appointed by the
President from among a list of individuals submitted by
the congressional leadership;
4) LEstablishing a Chief Development Officer to ensure
strong institutional linkages between the new DFC,
USAID, and other relevant departments and agencies;
5) LCreating an independent Inspector General of the
Corporation;
6) LMandating that foreign currency-denominated
support may only be provided if there is a substantive
policy rationale;
7) LAuthorizing the Corporation to make limited equity
investments as a minority investor in order to ensure
that the Corporation is economically interoperable with
allies such as the United Kingdom, Japan, and
multilateral institutions like the International
Finance Corporation, in which the United States is the
largest shareholder;
8) LAuthorizing the Corporation to conduct feasibility
studies, project-related technical-assistance grants,
and other kinds of ``wrap around'' services, as long as
they do not duplicate work being done by the U.S. Trade
and Development Agency;
9) LAuthorizing the Corporation to establish and
operate enterprise funds provided that such funds are
terminated not later than 7 years after their first
expenditure of funds;
10) LSubjecting the Corporation's lending activities to
the Federal Credit Reform Act;
11) LKeeping the Corporation subject to the regular
authorization and appropriations process to make its
spending transparent to taxpayers and accountable to
Congress;
12) LRequiring the Corporation's Board to annually
assess whether it should pay a dividend to the Treasury
if its insurance reserves exceed 100 percent;
13) LRestricting the Corporation from using fees to pay
for information technology or anything except travel
and legal expenses;
14) LEstablishing Risk and Audit Committees to ensure
appropriate oversight of the Corporation's investment
strategies and finances;
15) LRequiring the Corporation to establish clear
performance measures to evaluate and monitor its
projects;
16) LRequiring the Corporation to notify the committee
not later than 15 days prior to making a financial
commitment of $10 million or more;
17) LRequiring the Corporation to give preference to
projects sponsored by or involving United States
persons;
18) LRequiring the Corporation to consider the impacts
of its support on women's economic opportunities;
19) LRequiring the Corporation to give preference to
projects in countries the governments of which are
making continual progress toward economic policies that
support free enterprise;
20) LRequiring the Corporation to ensure that private
sector entities are afforded an opportunity to support
projects before any Corporation support may be
provided, which will ensure that Corporation support is
additional to--and does not compete with--the private
sector;
21) LConsolidating OPIC, DCA, and USAID's existing
Legacy Credit portfolio and other direct loans into
standalone Development Finance Corporation, after joint
coordination between USAID and OPIC; and
22) LAuthorizing the transfer of USAID's Office of
Private Capital and Microenterprise, legacy enterprise
funds, and sovereign loan guaranty portfolio to the new
DFC.
In addition to these reforms, the BUILD Act will carry
forward several important elements of OPIC. For example, by
taking into account the economic and financial soundness of
projects for which it provides support, the new DFC will
continue to be self-sustaining. In FY 2017, OPIC returned $262
million to the Treasury--generating returns for taxpayers for
the 40th straight year. Since its inception, OPIC estimates it
has contributed to about $80 billion in U.S. exports and
supported over 280,000 U.S. jobs. In addition, the BUILD Act
will carry forward all Corporation policies, including those
regarding prohibitions on investments in China, Russia,
countries facing U.S. sanctions, and any state-owned
enterprises.
With the right leadership and authorities, the new U.S.
International Development Finance Corporation can be a powerful
instrument to create opportunities in countries hungry for
growth and jobs. Its creation would also send a strong signal
about America's commitment to international economic engagement
in uncertain times.
Hearings
Most recently, the Foreign Affairs Committee held a hearing
on April 11, 2018, entitled ``Financing Overseas Development:
The Administration's Proposal,'' with Honorable Ray W.
Washburne, President and Chief Executive Officer of the
Overseas Private Investment Corporation, related to the
contents of H.R. 5105. The legislation was also the topic of
discussion on March 21, 2018, at a hearing entitled ``The FY
2019 Foreign Assistance Budget'' with the Honorable Mark Green,
Administrator of the United States Agency for International
Development. Previously, the Subcommittee on Asia and the
Pacific held a hearing on November 15, 2017, entitled
``Development Finance in Asia: U.S. Economic Strategy Amid
China's Belt and Road.''
Committee Consideration
On May 9, 2018, the Committee on Foreign Affairs marked up
H.R. 5105 in open session, pursuant to notice. An amendment in
the nature of a substitute (offered by Chairman Royce) and 14
other amendments to the amendment in the nature of a substitute
were considered en bloc with the underlying bill, and all were
agreed to by voice vote.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII of Rules of
the House of Representatives, the committee reports that
findings and recommendations of the committee, based on
oversight activities under clause 2(b)(1) of House Rule X, are
incorporated in the descriptive portions of this report,
particularly in the ``Background and Need for the Legislation''
and ``Section-by-Section Analysis'' sections.
New Budget Authority, Tax Expenditures, and Federal Mandates
In compliance with clause 3(c)(2) of House Rule XIII and
the Unfunded Mandates Reform Act (Public Law 104-4), the
committee adopts as its own the estimate of new budget
authority, entitlement authority, tax expenditure or revenues,
and Federal mandates contained in the cost estimate prepared by
the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
Congressional Budget Office Cost Estimate
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 9, 2018.
Hon. Edward R. Royce, Chairman,
Committee on Foreign Affairs,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5105, the BUILD
Act of 2018.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Sunita
D'Monte, who can be reached at 226-2840.
Sincerely,
Keith Hall.
Enclosure
cc:
Honorable Eliot L. Engel
Ranking Member
H.R. 5105--BUILD Act of 2018.
As ordered reported by the House Committee on Foreign
Affairs on May 9, 2018
SUMMARY
H.R. 5105 would authorize the establishment of a new
development finance institution for the United States: the U.S.
International Development Finance Corporation (USIDFC). USIDFC
would promote economic development in less developed countries
by providing loans, equity, insurance, and other forms of
assistance to U.S. companies and other entities that want to
invest and expand in those countries. CBO estimates that, on
net, implementing the legislation would reduce federal costs by
$77 million over the 2019-2023 period, assuming appropriation
actions consistent with the bill.
CBO estimates that enacting H.R. 5105 would increase direct
spending by $113 million over the 2019-2028 period. Because the
bill would affect direct spending, pay-as-you-go procedures
apply. The bill would not affect revenues.
CBO estimates that enacting H.R. 5105 would not increase
net direct spending by more than $2.5 billion or on-budget
deficits by more than $5 billion in any of the four consecutive
10-year periods beginning in 2029.
H.R. 5105 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
ESTIMATED COST TO THE FEDERAL GOVERNMENT
The estimated budgetary effect of H.R. 5105 is shown in
Table 1. The costs of the legislation fall within budget
function 150 (international affairs).
TABLE 1. BUDGETARY EFFECTS OF H.R. 5105, THE BUILD ACT OF 2018
By Fiscal Year, in Millions of Dollars
----------------------------------------------------------------------------------------------------------------
2019-
2018 2019 2020 2021 2022 2023 2023
----------------------------------------------------------------------------------------------------------------
INCREASES OR DECREASES (-) IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level 0 0 -1 -20 28 114 122
Estimated Outlays 0 0 -89 -67 -8 86 -77
INCREASES IN DIRECT SPENDING\1\
Estimated Budget Authority 0 0 12 12 13 13 50
Estimated Outlays 0 0 12 12 13 13 50
----------------------------------------------------------------------------------------------------------------
\1\H.R. 5105 would change direct spending as shown here (an increase of $50 million over the 2019-2023 period)
and also would have effects beyond 2023. CBO estimates that enacting the bill would increase direct spending
by $113 million over the 2019-2028 periods (see Table 3).
Details may not sum to totals because of rounding.
BASIS OF ESTIMATE
For this estimate, CBO assumes that H.R. 5105 will be
enacted by the end of 2018, that the estimated amounts will be
appropriated each fiscal year, and that outlays will match
historical spending patterns for similar activities.
Spending Subject to Appropriation
H.R. 5105 would consolidate several existing development
finance, credit, and foreign assistance programs into the new
USIDFC and provide it with new and broader authority. The
agency's authority to enter into new agreements would expire
seven years after enactment of the legislation. The
Administration requested funding in 2019 for a similar new
institution.
The bill would require the Overseas Private Investment
Corporation (OPIC), the Development Credit Authority (DCA), and
several smaller legacy credit programs of the U.S. Agency for
International Development (USAID) to be folded into USIDFC.
Under the bill, USIDFC would have a $60 billion ceiling on
outstanding liability--roughly double the current combined
total liability for those programs. Under current law, OPIC's
outstanding liability is roughly $23 billion, and CBO expects
that within the next two years it will reach the currently
authorized $29 billion ceiling.
The Administration would be authorized to transfer other
programs to USIDFC, such as enterprise funds, sovereign loan
guarantees, and microenterprise credit. The Administration
indicated that it is unlikely to do so, however, and this
estimate does not include any effects related to those
programs. Finally, H.R. 5105 would institutionalize
coordination between USIDFC and USAID, thereby allowing USAID
staff overseas to identify potential projects and promote
USIDFC.
Under current law, OPIC helps U.S. companies expand and
invest overseas, primarily by providing direct loans, loan
guarantees, and insurance; DCA promotes commercial lending in
developing countries by guaranteeing the timely repayment of
loans made by local lenders. Although the authority of both
entities to enter into new contracts expires at the end of
fiscal year 2018, they will continue to operate for some years
after that date to service existing contracts.
Under the bill, USIDFC would continue the existing programs
run by OPIC and DCA and would be newly authorized to invest in
projects, either directly or through investment funds. The bill
would loosen an existing requirement on OPIC to work with U.S.
citizens and corporations. H.R. 5105 also would require USIDFC
to focus primarily on less developed countries, whereas current
programs also operate in higher-income countries transitioning
to market economies. On the basis of information from the
Administration about how USIDFC would implement that focus, CBO
estimates that in comparison to current programs, a greater
proportion of loans and loan guarantees would have a positive
subsidy cost (that is, they increase net costs), as defined in
the Federal Credit Reform Act of 1990 (FCRA).\1\ In addition,
on the basis of information from the Administration about
USAID's legacy credit portfolio, CBO anticipates little, if
any, effect on those programs under the bill.
---------------------------------------------------------------------------
\1\Under FCRA, the subsidy cost of a direct loan or loan guarantee
is the net present value of estimated payments by the government to
cover defaults and delinquencies, interest subsidies, or other
expenses, offset by any payments to the government, including
origination fees, other fees, penalties, and recoveries on defaulted
loans. (A present value expresses a flow of past and future income or
payments as a single amount received or paid at a specific time.) The
net present value does not include the cost of market risk. Such
subsidy costs are recorded in the budget when loans are disbursed.
---------------------------------------------------------------------------
On the basis of information from the Administration about
how it would implement the transition plan detailed in H.R.
5105, CBO expects that USIDFC would begin operations in 2020.
In total, after accounting for OPIC and DCA costs to complete
current contracts, and assuming appropriation actions
consistent with the bill, CBO estimates that implementing H.R.
5105 would reduce costs by $77 million, on net, over the 2019-
2023 period. The components of that estimate are discussed
below and shown in Table 2.
TABLE 2. CHANGES IN SPENDING SUBJECT TO APPROPRIATION IN
H.R. 5105, THE BUILD ACT OF 2018
By Fiscal Year, in Millions of Dollars
----------------------------------------------------------------------------------------------------------------
2019-
2018 2019 2020 2021 2022 2023 2023
----------------------------------------------------------------------------------------------------------------
INCREASES OR DECREASES (-) IN SPENDING SUBJECT TO APPROPRIATION
Administrative Expenses
Estimated Authorization Level 0 0 51 56 59 64 230
Estimated Outlays 0 0 31 52 58 62 204
Positive Subsidy Costs for Loans
Estimated Authorization Level 0 0 85 87 89 91 353
Estimated Outlays 0 0 25 44 55 65 189
Negative Subsidies for Loans
Estimated Authorization Level 0 0 -170 -221 -253 -272 -916
Estimated Outlays 0 0 -170 -221 -253 -272 -916
Equity Investments
Estimated Authorization Level 0 0 50 75 150 250 525
Estimated Outlays 0 0 50 75 150 250 525
Other Assistance
Estimated Authorization Level 0 0 15 15 16 16 62
Estimated Outlays 0 0 7 15 15 16 53
Fees for Activities Related to Specific Projects
Estimated Authorization Level 0 0 -34 -34 -35 -36 -139
Estimated Outlays 0 0 -34 -34 -35 -36 -139
Inspector General
Estimated Authorization Level 0 0 3 3 3 3 12
Estimated Outlays 0 0 3 3 3 3 12
Insurance Premiums
Estimated Authorization Level 0 0 -1 -1 -1 -2 -5
Estimated Outlays 0 0 -1 -1 -1 -2 -5
Total Changes
Estimated Authorization Level 0 0 -1 -20 28 114 122
Estimated Outlays 0 0 -89 -67 -8 86 -77
----------------------------------------------------------------------------------------------------------------
Details may not sum to totals because of rounding.
Administrative Expenses. Under current law, OPIC and DCA
will be unable to enter into new contracts starting in 2019;
however, they will continue to service their existing
portfolios for some time. CBO estimates they will begin
reducing staffing in 2019 but that severance payments will keep
appropriations required for administrative expenses at the
current amount ($89 million) in that year. In 2020, CBO
estimates, that amount will decline to $46 million and will
continue to fall in following years.
On the basis of information from the Administration about
its budget request for 2019 and staffing requirements to
implement the new authority granted under H.R. 5105, CBO
estimates that USIDFC would consolidate existing personnel from
OPIC and DCA and hire three additional employees (primarily to
implement equity investments); those activities would require
appropriations in 2020 totaling $97 million. Over the 2020-2023
period, CBO estimates, total administrative expenses would grow
by about 2 percent each year.
After adjusting for ongoing costs of OPIC and DCA, CBO
estimates that, on net, implementing H.R. 5105 would require
additional appropriations of $51 million in 2020 and would
increase administrative expenses by $204 million over the 2020-
2023 period, assuming appropriation of the necessary amounts.
Positive Subsidy Costs for Loans. On the basis of
information from the Administration and after adjusting for
projected growth under the higher ceiling on outstanding
liability authorized by H.R. 5105, CBO estimates that
appropriations required for the subsidy costs of new loans and
loan guarantees would amount to $85 million in 2020 and total
about $350 million over the 2020-2023 period. (In 2018, OPIC
and DCA received total appropriations of $75 million for
subsidy costs.) Assuming appropriation of the necessary
amounts, CBO estimates that outlays for those subsidy costs
would increase by $189 million over the 2020-2023 period.
(Outlays would lag behind appropriations, reflecting the
expected pace of disbursements of new loans.)
Negative Subsidies for Loans. Some of the loans OPIC
currently provides yield a net budgetary savings under the cost
formula specified in FCRA, which requires that the expected
government cash flows be discounted using the rates on Treasury
securities of comparable maturity. Those loans have lower
default rates and higher fees than other products and, thus,
yield net savings to the government. In 2018, CBO estimates,
OPIC will generate $250 million in negative subsidies. Under
current law, starting in 2019 when OPIC will be unable to enter
into new contracts, CBO estimates that negative subsidies will
begin to decline and will disappear by 2025.
On the basis of information from the Administration and
adjusting for projected growth under the higher ceiling on
outstanding liability, CBO estimates that under H.R. 5105
negative subsidies would total $265 million in 2020--$170
million above the current-law amount for that year and $916
million for the 2020-2023 period.
Equity Investments. H.R. 5105 would authorize USIDFC to
invest, either directly or through investment funds, in
projects in less developed countries. Under the bill, the
proceeds from the eventual sale of those investments, including
any accumulated earnings, would be returned to USIDFC. H.R.
5105 does not specify, and CBO cannot determine, whether those
proceeds would be available for further spending. If they
became available, CBO would treat those effects as direct
spending.
The current budgetary treatment of investing federal funds
in nonfederal securities is specified in Circular A-11,
published by the Office of Management and Budget.\2\ Under that
treatment, the purchase of private securities is to be recorded
as an outlay at the time of purchase and in the amount of the
face value of the purchase. Upon the sale of such securities,
CBO expects that the proceeds would be recorded as
discretionary offsetting collections.
---------------------------------------------------------------------------
\2\See Office of Management and Budget, Preparation, Submission,
and Execution of the Budget, Circular A-11 (June 2018),
www.whitehouse.gov/omb/circulars.
---------------------------------------------------------------------------
CBO expects investments in private securities probably
would accrue earnings over the period they are held. With the
potential for greater rates of return, government investments
in private securities could increase the expected value of
budgetary resources, but such investments also would expose the
government, future taxpayers, and beneficiaries of federal
programs to greater risk. Investments in less developed
countries may be riskier than investments in other private
securities. When that risk is taken into account, the returns
on private securities would be no greater than the returns on
government securities, CBO estimates. In addition, the
Department of the Treasury would have to pay interest on the
additional borrowing necessary to purchase private securities.
In CBO's view, any earnings that result from private
investments are equivalent to changes in net interest costs;
such earnings are not shown in this estimate because, based on
long-standing precedents, CBO does not include in cost
estimates the net interest costs associated with the estimated
budgetary effects of legislation.
OPIC currently provides loan guarantees to investment
funds, and the Administration indicated that it would build on
that experience by implementing equity investing through
investment funds, rather than through direct investments. The
Administration also indicated that it could eventually invest
up to a few hundred million dollars a year. On the basis of
that information and adjusting for a phase-in period, CBO
estimates that implementing the authority to invest in equities
would require additional appropriations of $50 million in 2020,
growing to $250 million in 2023, for a total cost of $525
million over the 2020-2023 period. CBO expects that USIDFC
would retain those investments for a period of 8 to 10 years
before deciding to sell; thus, the proceeds from such sales
would probably not be returned to USIDFC until after 2028.
Other Assistance. The bill would authorize USIDFC to
undertake business promotion activities such as feasibility
studies and technical assistance to help projects acquire
USIDFC financing. H.R. 5105 also would allow USIDFC to
administer ancillary programs and projects to support its
financing activities, such as providing grants or technical
support for small businesses. On the basis of information from
the Administration about its 2019 budget request for such
activities, CBO estimates that implementing those provisions
would require additional appropriations of about $15 million a
year and cost $53 million over the 2020-2023 period.
Fees for Activities Related to Specific Projects. H.R. 5105
would authorize USIDFC to charge and retain fees for services,
subject to future appropriations action. In addition to its
fees for loans and insurance, OPIC charges fees for certain
administrative transactions related to specific projects, such
as travel and legal work. The vast majority of the fees are
collected at the start of the project and under current law CBO
expects such collections will end starting in 2019. Under
current practice, fees for insurance products are treated as
discretionary offsetting collections; however, fees for loans
and loan guarantees are currently deposited into loan financing
accounts, which are off-budget. Under the bill, both types of
fees would be treated as discretionary offsetting collections.
On the basis of information about fees collected in recent
years, CBO estimates that those collections under the bill
would total $34 million in 2020 and $139 million over the 2020-
2023 period. Under H.R. 5105, spending on the underlying
activity associated with these fees would be treated as direct
spending and is discussed under that heading below.
Inspector General. Section 104 would establish an inspector
general (IG) for USIDFC. Currently, the IG for USAID covers the
programs being folded into USIDFC. Based on information from
the Administration about costs for personnel, contract staff,
office space, travel, and other expenses and adjusting for
reduced costs for the USAID IG, CBO estimates that implementing
that requirement would have a net cost of $3 million a year
over the 2020-2023 period, assuming appropriation of the
necessary amounts.
Insurance Premiums. OPIC's current insurance programs offer
protection against political risks associated with investing
overseas, such as expropriation, terrorism, political violence
or civil strife, and currency inconvertibility. The average
policy term is about 11 years, and collections from premiums
are $10 million each year. Under the bill, in addition to
absorbing OPIC's insurance portfolio, USIDFC would be allowed
to sell insurance to international financial institutions and
development finance institutions from other countries. On the
basis of information from the Administration, and adjusting for
projected growth under the bill, CBO estimates that under this
provision USIDFC would collect an additional $5 million in
insurance premiums over the 2020-2023 period. Payments made for
insurance claims are treated as direct spending and are
discussed under that heading below.
Direct Spending
CBO estimates that enacting H.R. 5105 would increase direct
spending by $113 million over the 2019-2028 period (see Table 3
below).
TABLE 3. CHANGES IN DIRECT SPENDING UNDER H.R. 5105, THE BUILD ACT OF
2018
By Fiscal Year, in Millions of Dollars
----------------------------------------------------------------------------------------------------------------
2019- 2019-
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2023 2028
----------------------------------------------------------------------------------------------------------------
INCREASES IN DIRECT SPENDING
Activities Related to Specific
Projects
Estimated Budget Authority 0 0 12 12 13 13 14 14 14 11 9 50 112
Estimated Outlays 0 0 12 12 13 13 14 14 14 11 9 50 112
Insurance Claim
Estimated Budget Authority 0 0 * * * * * * * * * * 1
Estimated Outlays 0 0 * * * * * * * * * * 1
Total Changes in Direct
Spending
Estimated Budget
Authority 0 0 12 12 13 13 14 14 14 11 9 50 113
Estimated Outlays 0 0 12 12 13 13 14 14 14 11 9 50 113
----------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding; * = between zero and $500,000.
Activities Related to Specific Projects. As described under
Spending Subject to Appropriation, H.R. 5105 would authorize
USIDFC to undertake certain administrative transactions related
to specific projects. Under current law, OPIC has spent roughly
$24 million a year on such transactions; however, starting in
2019 when OPIC's authorization expires, CBO expects that
spending will end. The bill would narrow the scope of such
activity to travel, legal expenses, and claims settlement. CBO
estimates that fees charged for those purposes would exceed
spending. Although the bill clearly specifies that the fees
would be collected subject to appropriation, it would allow
USIDFC to perform underlying activities without prior
appropriation action. On the basis of information about such
activity in recent years, CBO estimates that USIDFC would spend
$12 million in 2020; that amount would grow to $14 million in
2024 and start to decline in 2025 when USIDF's authorization
would expire. In total, CBO estimates, enacting the bill would
increase direct spending by $112 million over the 2020-2028
period.
Insurance Claims. Using information from the Administration
about OPIC's current insurance portfolio and adjusting for new
insurance policies under the bill, CBO estimates that USIDFC
would pay small amounts each year in additional claims,
resulting in an increase in direct spending of less than
$500,000 each year and totaling $1 million over the 2020-2028
period.
Interest Earned on Treasury Securities. Section 304 would
authorize the USIDFC to invest balances in securities of the
federal government and to use the resulting interest earnings
for its ongoing programs. Under current law, OPIC has similar
authority. Under a long-standing convention, OPIC's interest
earnings are credited to the House and Senate Appropriations
Committees as discretionary offsetting collections, thereby
reducing OPIC's need for appropriations.
Under the bill, CBO would treat interest earnings from
OPIC's reinvestments and new investments made by USIDFC as
mandatory offsetting collections, in accordance with the
principle that interest on federal securities is an
intragovernmental transfer (the interest is paid by the
Treasury and thus appears as an offsetting payment elsewhere in
the federal budget).
USIDFC would spend its interest earnings on project-
specific transactions and insurance claims, as described above.
That spending would be treated as direct spending.
Other Provisions. H.R. 5105 would allow USIDFC to accept
gifts and donations to carry out its functions and would
require the agency to seek cost sharing or reimbursements for
business promotion activities such as feasibility studies and
technical assistance. CBO estimates that enacting those
provisions would have insignificant net effects on direct
spending.
PAY-AS-YOU-GO CONSIDERATIONS
The Statutory Pay-As-You-Go Act of 2010 establishes budget-
reporting and enforcement procedures for legislation affecting
direct spending or revenues. The net changes in outlays that
are subject to those pay-as-you-go procedures are shown in
Table 4.
TABLE 4. CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 5105 AS ORDERED
REPORTED BY THE HOUSE COMMITTEE ON FOREIGN AFFAIRS ON MAY 9, 2018
By Fiscal Year, in Millions of Dollars
----------------------------------------------------------------------------------------------------------------
2018- 2018-
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2023 2028
----------------------------------------------------------------------------------------------------------------
NET INCREASE IN THE DEFICIT
Statutory Pay-As-You-Go Effect 0 0 12 12 13 13 14 14 14 11 9 50 113
----------------------------------------------------------------------------------------------------------------
INCREASE IN LONG-TERM DIRECT SPENDING AND DEFICITS
CBO estimates that enacting H.R. 5105 would not increase
net direct spending by more than $2.5 billion or on-budget
deficits by more than $5 billion in any of the four consecutive
10-year periods beginning in 2029.
MANDATES
H.R. 5105 contains no intergovernmental or private-sector
mandates as defined in UMRA.
ESTIMATE PREPARED BY
Federal Costs: Sunita D'Monte
Mandates: Jon Sperl
ESTIMATE REVIEWED BY
Sarah Jennings
Chief, Defense, International Affairs, and Veterans' Affairs
Cost Estimate Unit
Leo Lex
Deputy Assistant Director for Budget Analysis
Theresa Gullo
Assistant Director for Budget Analysis
Directed Rule Making
Pursuant to clause 3(c) of House Rule XIII, as modified by
section 3(i) of H. Res. 5 during the 115th Congress, the
committee notes that H.R. 5105 contains no directed rule-making
provisions.
Non-Duplication of Federal Programs
Pursuant to clause 3(c)(5) of House Rule XIII, the
committee states that no provision of this bill establishes or
reauthorizes a program of the Federal Government known to be
duplicative of another Federal program, a program that was
included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-
139, or a program related to a program identified in the most
recent Catalog of Federal Domestic Assistance.
Performance Goals and Objectives
The objective of this legislation is to mobilize and
facilitate the participation of private sector capital and
skills in the economic development of less developed countries,
and countries in transition from nonmarket to market economies,
through the provision of credit, capital, and other financial
support in order to complement the development assistance
objectives, and advance the foreign policy interests, of the
United States. To ensure appropriate performance of the new
Corporation's activities and proper oversight by Congress,
Section 103 establishes a Chief Risk Officer of the U.S.
International Development Finance Corporation to limit risks to
the Corporation's portfolio. Section 104 requires the President
to appoint and maintain an independent Inspector General of the
Corporation. Section 304 subjects the Corporation's lending
activities to the Federal Credit Reform Act to make its
spending transparent to taxpayers and accountable to Congress.
Section 401 establishes Risk and Audit Committees at the
Corporation to ensure appropriate oversight of the
Corporation's investment strategies and finances. Section 402
requires the Corporation to develop a performance measurement
system to evaluate and monitor projects supported by the
Corporation. Section 403 requires the Corporation to submit a
detailed report to Congress of its operations each year.
Section 404 requires the Corporation to make detailed country-
level information available to the public, including
descriptions of any support provided by the Corporation to
projects in those countries. Section 406 requires the
Corporation to notify Congress not later than 15 days prior to
making a financial commitment of $10 million or more. Section
502 requires the Corporation to ensure that private sector
entities are afforded an opportunity to support projects before
any Corporation support may be provided in order to ensure that
Corporation support is additional to--and does not compete
with--the private sector.
Congressional Accountability Act
H.R. 5105 does not apply to terms and conditions of
employment or to access to public services or accommodations
within the legislative branch.
New Advisory Committees
H.R. 5105 does not establish or authorize any new advisory
committees.
Earmark Identification
H.R. 5105 contains no congressional earmarks, limited tax
benefits, or limited tariff benefits as described in clauses
9(e), 9(f), and 9(g) of House Rule XXI.
Section-by-Section Analysis
Section 1. Short Title; Table of Contents.
States that this Act may be cited as ``The Better
Utilization of Investments Leading to Development Act of 2018''
or the ``BUILD Act of 2018.''
Section. 2. Definitions.
Defines four terms used throughout the bill.
TITLE I--ESTABLISHMENT
Section 101. Statement of Policy.
States that it is the policy of the United States to
facilitate market-based private sector development and economic
growth in less developed countries through the provision of
credit, capital, and other financial support to further U.S.
foreign policy interests, help private sector actors overcome
market gaps without distorting markets, and help lessen the
reliance on traditional forms of foreign assistance over time.
The committee recognizes the importance of private
investment, with its accompanying skills, to economic progress
in developing countries. Private investment's role in the
growth of private enterprise in developing countries must be
more fully realized in order to achieve the objectives of this
Act.
Section 102. United States International Development Finance
Corporation.
Establishes the U.S. International Development Finance
Corporation (the ``Corporation'') under the general policy
guidance of the Secretary of State.
The purpose of the Corporation is to promote and support
the active participation of private enterprise in providing
capital and skills to help further the development of less
developed countries. The Corporation's activities will
therefore complement the development assistance objective
pursued by USAID and other developmental agencies of the United
States Government.
In its support of private sector projects under Title II,
the Corporation is expected to operate on a self-sustaining
basis. In deciding whether to assist in the financing of a
project, the Corporation will consider the economic and
financial soundness of the proposal.
This section also sets the Corporation's focus on
supporting private sector investment in low income and lower-
middle income countries as defined by the World Bank.
Section 103. Management of Corporation.
Establishes the positions of Chief Executive Officer (CEO),
Deputy Chief Executive Officer, Chief Development Officer, and
Chief Risk Officer. Also establishes a Board of Directors for
the Corporation composed of officers from the Departments of
State, Treasury, and Commerce, the U.S. Agency for
International Development (USAID), and the CEO of the
Corporation. The President shall select a Chairman of the Board
from among these individuals, while the USAID representative
will serve as Vice Chair of the Board. Four other non-
government individuals will be appointed by the President
selected from lists submitted by congressional leadership.
Subsection (b) vests the powers of the Corporation in the
Board of Directors. The latter may delegate authority to
Corporation officers, such as the CEO, who may then exercise
corporate powers under authority of the Board in accordance
with the terms of such delegations. Subsection (d) provides
that the CEO of the Corporation shall be appointed by the
President of the United States subject to Senate confirmation.
In making this appointment the President shall take into
account the appointee's private business experience. The CEO of
the Corporation is charged with the Corporation's management
and operations under bylaws and policies established by the
Board of Directors.
The committee carefully considered how to solidify strong
institutional linkages between the Corporation and USAID. This
relationship is embodied by the establishment of a Chief
Development Officer (CDO) in subsection (g). The CDO's central
role will be to ensure that USAID officers have ``training,
awareness and access to'' the Corporations financial tools, and
that the DFC has access to USAID resources in pursuit of
development projects. While the CDO will report directly to the
Board, much of these day to day responsibilities will occur
under the guidance of the Chief Executive Officer.
Section 104. Inspector General of the Corporation.
Establishes an Inspector General for the Corporation
pursuant to the Inspector General Act of 1978.
Section 105. Independent Accountability Mechanism.
Requires the Board to establish a transparency and
independent accountability mechanism to annually evaluate and
report to the Board and Congress regarding compliance with the
Board's statutory mandates and provide a forum to resolve
concerns regarding the impacts of specific Corporation-
supported projects.
The committee is aware of the establishment in recent years
of various mechanisms within other DFIs to increase
accountability and transparency. This section establishes a
similar office for the Corporation. However, recognizing under
the Inspector General Act that agency compliance and reporting
is a core Inspector General duty, the committee expects that
the Inspector General of the Corporation and independent
accountability mechanism established by this section shall not
overlap and result in duplicate work or reporting to the
committee.
TITLE II--AUTHORITIES
Section 201. Authorities Relating to Provision of Support.
Authorizes the Corporation to make loans, guaranties,
limited equity investments, and to issue political risk
insurance. Requires a clearly defined development rationale for
equity investments and limits equity investments to no more
than 30 percent of the aggregate equity investments for a
project and no more than 35 percent of the Corporation's
aggregate exposure. Authorizes feasibility studies for the
planning, development, and management of potential bilateral
and multilateral development projects.
Subsection (e) provides the Corporation with the authority
to carry out a range of investment promotion activities,
utilizing where appropriate, private organizations and
investors. These activities, which may include incentive grants
and other financing arrangements, are concerned with the
identification, evaluation, and development of private
investment opportunities. They will include pre-investment
studies and other investigations at various stages of project
development. This subsection thus incorporates activities
previously carried out under the Foreign Assistance Act by
OPIC. As in the past, these techniques may include financial
participation which would be repayable to the Corporation if
the investor went forward with the project.
Subsection (f) authorizes the Corporation to administer
special private enterprise projects and programs relating to
its objectives, for which purpose it can also accept and use
funds which may be transferred to it. The Corporation might,
for example, be asked to administer on behalf of USAID,
technical or capital assistance programs relating to private
enterprise or concerning institutions, such as intermediate
credit institutions and cooperatives, closely related to
private enterprise activities. USAID funds, which may be
transferred to the Corporation for this purpose, would be used
in accordance with the terms and conditions governing USAID's
use of such funds.
Subsection (g) also authorizes the Corporation to establish
and operate enterprise funds subject to safeguards and
oversight mechanisms. Sets forth the purposes for which such
funds may be established, including the promotion of economic
freedom and private sector development. May establish boards of
directors for enterprise funds, reporting requirements, and
regular auditing procedures. Caps the authority of each
enterprise fund at 7 years after the first expenditure of the
fund.
Section 202. Terms and Conditions.
Imposes terms and conditions on support provided by the
Corporation. The final maturity of loans and loan guaranties is
capped at 25 years. Limits loan guaranties to transactions
involving lenders determined to be responsible by the
Corporation. Requires the Corporation to prescribe standards
for use in periodically assessing the credit risk of new and
existing loans or loan guaranties.
Section 203. Payment of Losses.
Provides for payment for default on a guaranteed loan to
the holder of the loan. Directs the Corporation to pursue
recovery of the loss from the borrower and the Attorney General
to take appropriate action to enforce any rights accruing to
the United States under the Act.
Section 204. Termination.
Title II authorities are authorized to continue until 7
years after the date of enactment of this Act, by which time
sufficient experience should be gained for reassessment by the
committee of the Corporation's programs.
TITLE III--ADMINISTRATIVE AND GENERAL PROVISIONS
Section 301. Operations.
Requires bilateral investment agreements and claims
settlement procedures.
Section 302. Corporate Powers.
Provides those general corporate powers which are
appropriate to the operations of a government corporation
carrying out the purposes and activities specified in this
title.
Section 303. Maximum Contingent Liability.
Sets forth the maximum contingent liability of the
Corporation at $60 billion, adjusted according to the Consumer
Price Index over time.
Section 304. Corporate Funds.
Establishes a Corporate Capital Account in the Treasury to
consist of funds made available to the Corporation to discharge
its liabilities. Authorizes transfer of revenues collected by
the Overseas Private Investment Corporation (OPIC) to the
Corporation. Requires the Corporation to annually assess a
dividend to the Treasury if the Corporation's insurance
portfolio is more than 100 percent reserved.
Section 305. Coordination with Other Development Agencies.
Encourages the Corporation to use MCC's constraints
analysis and other relevant data of the Department of State,
and other departments or agencies with a development function
to better inform the Corporation's decisions regarding the
provision of support under Title II.
TITLE IV--MONITORING, EVALUATION, AND REPORTING
Section 401. Establishment of Risk and Audit Committees.
Establishes risk and audit committees to carry out
oversight of the Corporation and its risk governance structure.
Section 402. Performance Measures.
Establishes a performance measurement system to evaluate
and monitor investment projects of the Corporation.
Section 403. Annual Report.
Requires annual reports to appropriate congressional
committees, including assessments of the economic and social
development impacts of projects supported by the Corporation.
Section 404. Publicly Available Project Information.
Requires the Corporation to make information about projects
supported by the Corporation publicly available.
Section 405. Engagement with Investors.
Requires the Corporation, in cooperation with USAID, to
develop a strategic relationship with private entities focused
on the nexus of business opportunities and development
priorities to pursue projects consistent with State Department
and USAID goals.
Section 406. Notification of Support to be Provided by the Corporation.
Not later than 15 days prior to the Corporation making a
financial commitment over $10 million, the CEO shall submit a
written notification to the committee. Such notifications will
allow the committee to monitor the overall portfolio of the
Corporation's support and its development objectives. The
committee recognizes that given the Corporation's interaction
with the private sector, time certainty in the congressional
notification process is critical.
TITLE V--CONDITIONS, RESTRICTIONS, AND PROHIBITIONS
Section 501. Limitations and Preferences.
Sets a ceiling of 5 percent of the maximum contingent
liability of the Corporation to be issued to any single entity.
Establishes preferences for projects sponsored by or involving
U.S. persons, for countries in compliance with international
trade obligations, and for countries that are making progress
toward economic policies that promote private investment.
Section 502. Additionality and Avoidance of Market Distortion.
Requires the Corporation to ensure private sector entities
are afforded opportunities to support the project instead of
the project receiving support from the Corporation. Requires
the Corporation to develop appropriate safeguards, policies,
and guidelines to ensure that Corporation investments
supplement but do not compete with or crowd out private sector
entities.
Section 503. Prohibition on Support in Sanctioned Countries and with
Sanctioned Persons.
Prohibits the Corporation from supporting projects in a
country the government of which has repeatedly provided support
for acts of international terrorism. Prohibits the Corporation
from supporting a project that benefits any entity subject to
sanctions imposed by the United States.
Section 504. Penalties for Misrepresentation, Fraud, and Bribery.
Prohibits payments under the Act for losses arising out of
fraud or misrepresentation. Imposes criminal penalties for acts
of fraud against the Corporation. Prohibits insurance payments
in connection with final judgments concluding certain acts
constituted a violation of the Foreign Corrupt Practices Act.
TITLE VI--TRANSITIONAL PROVISIONS
Section 601. Definitions.
Defines two terms used throughout this title.
Section 602. Reorganization Plan.
Requires the President to transmit to congressional
committees within 120 days of enactment a reorganization plan
regarding the transfer and consolidation or reorganization of
agencies under this Act.
Section 603. Transfer of Functions.
Transfers functions, personnel, assets, and liabilities of
the OPIC, USAID's Development Credit Authority, and the
existing Legacy Credit portfolio under the Urban Environment
Program and any other direct loan programs and non-Development
Credit Authority guaranty programs authorized by the Foreign
Assistance Act. Authorizes the transfer of USAID's Office of
Private Capital and Microenterprise, the enterprise funds and
all sovereign loan accounts.
Section 604. Termination of Overseas Private Investment Corporation and
Other Superseded Authorities.
Provides for the termination of OPIC and associated
statutory authorities.
Section 605. Transitional Authorities.
Authorizes non-Corporation officials to assist the
Corporation with the transfer and integration of agency
elements into the Corporation. Establishes authority for acting
officials at the Corporation during the transition period and
for the transfer of personnel, assets, and obligations from
existing agencies to the Corporation.
Section 606. Savings Provisions.
States that completed administrative actions of an agency
shall not be affected by the enactment of this Act or the
transfer of such agency to the Corporation. Provides for the
continuance of pending proceedings notwithstanding the transfer
of operations to the Corporation.
Section 607. Other Terminations.
Terminates offices for transferred positions.
Section 608. Incidental Transfers.
Authorizes the Director of the Office of Management and
Budget to make additional dispositions of personnel, assets,
and liabilities in connection with functions transferred by the
Act.
Section 609. Reference.
States that references in Federal law to transferred
offices shall be deemed to refer to the appropriate component
of the Corporation.
Section 610. Conforming Amendments.
Makes a series of conforming amendments to existing
statutory authorities.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
TITLE 5, UNITED STATES CODE
* * * * * * *
PART III--EMPLOYEES
* * * * * * *
SUBPART D--PAY AND ALLOWANCES
* * * * * * *
CHAPTER 53--PAY RATES AND SYSTEMS
* * * * * * *
SUBCHAPTER II--EXECUTIVE SCHEDULE PAY RATES
* * * * * * *
Sec. 5313. Positions at level II
Level II of the Executive Schedule applies to the following
positions, for which the annual rate of basic pay shall be the
rate determined with respect to such level under chapter 11 of
title 2, as adjusted by section 5318 of this title:
Deputy Secretary of Defense.
Deputy Secretary of State.
Deputy Secretary of State for Management and
Resources.
Administrator, Agency for International Development.
Administrator of the National Aeronautics and Space
Administration.
Deputy Secretary of Veterans Affairs.
Deputy Secretary of Homeland Security.
Under Secretary of Homeland Security for Management.
Deputy Secretary of the Treasury.
Deputy Secretary of Transportation.
Chairman, Nuclear Regulatory Commission.
Chairman, Council of Economic Advisers.
Director of the Office of Science and Technology.
Director of the Central Intelligence Agency.
Secretary of the Air Force.
Secretary of the Army.
Secretary of the Navy.
Administrator, Federal Aviation Administration.
Director of the National Science Foundation.
Deputy Attorney General.
Deputy Secretary of Energy.
Deputy Secretary of Agriculture.
Director of the Office of Personnel Management.
Administrator, Federal Highway Administration.
Administrator of the Environmental Protection Agency.
Chief Management Officer of the Department of
Defense.
Deputy Secretary of Labor.
Deputy Director of the Office of Management and
Budget.
Independent Members, Thrift Depositor Protection
Oversight Board.
Deputy Secretary of Health and Human Services.
Deputy Secretary of the Interior.
Deputy Secretary of Education.
Deputy Secretary of Housing and Urban Development.
Deputy Director for Management, Office of Management
and Budget.
Director of the Federal Housing Finance Agency.
Deputy Commissioner of Social Security, Social
Security Administration.
Administrator of the Community Development Financial
Institutions Fund.
Deputy Director of National Drug Control Policy.
Members, Board of Governors of the Federal Reserve
System.
Under Secretary of Transportation for Policy.
Chief Executive Officer, Millennium Challenge
Corporation.
Principal Deputy Director of National Intelligence.
Director of the National Counterterrorism Center.
Administrator of the Federal Emergency Management
Agency.
Federal Transit Administrator.
Chief Executive Officer, United States International
Development Finance Corporation.
Sec. 5314. Positions at level III
Level III of the Executive Schedule applies to the following
positions, for which the annual rate of basic pay shall be the
rate determined with respect to such level under chapter 11 of
title 2, as adjusted by section 5318 of this title:
Solicitor General of the United States.
Under Secretary of Commerce, Under Secretary of
Commerce for Economic Affairs, Under Secretary of
Commerce for Export Administration, and Under Secretary
of Commerce for Travel and Tourism.
Under Secretaries of State (6).
Under Secretaries of the Treasury (3).
Administrator of General Services.
Administrator of the Small Business Administration.
Deputy Administrator, Agency for International
Development.
Chairman of the Merit Systems Protection Board.
Chairman, Federal Communications Commission.
Chairman, Board of Directors, Federal Deposit
Insurance Corporation.
Chairman, Federal Energy Regulatory Commission.
Chairman, Federal Trade Commission.
Chairman, Surface Transportation Board.
Chairman, National Labor Relations Board.
Chairman, Securities and Exchange Commission.
Chairman, National Mediation Board.
Chairman, Railroad Retirement Board.
Chairman, Federal Maritime Commission.
Comptroller of the Currency.
Commissioner of Internal Revenue.
Under Secretary of Defense for Acquisition and
Sustainment.
Under Secretary of Defense for Policy.
Under Secretary of Defense (Comptroller).
Under Secretary of Defense for Personnel and
Readiness.
Under Secretary of Defense for Intelligence.
Deputy Chief Management Officer of the Department of
Defense.
Under Secretary of the Air Force.
Under Secretary of the Army.
Under Secretary of the Navy.
Deputy Administrator of the National Aeronautics and
Space Administration.
Deputy Director of the Central Intelligence Agency.
Director of the Office of Emergency Planning.
Director of the Peace Corps.
Deputy Director, National Science Foundation.
President of the Export-Import Bank of Washington.
Members, Nuclear Regulatory Commission.
Members, Defense Nuclear Facilities Safety Board.
Director of the Federal Bureau of Investigation,
Department of Justice.
Administrator of the National Highway Traffic Safety
Administration.
Administrator of the Federal Motor Carrier Safety
Administration.
Administrator, Federal Railroad Administration.
Chairman, National Transportation Safety Board.
Chairman of the National Endowment for the Arts the
incumbent of which also serves as Chairman of the
National Council on the Arts.
Chairman of the National Endowment for the
Humanities.
Director of the Federal Mediation and Conciliation
Service.
[President, Overseas Private Investment Corporation.]
Chairman, Postal Regulatory Commission.
Chairman, Occupational Safety and Health Review
Commission.
Governor of the Farm Credit Administration.
Chairman, Equal Employment Opportunity Commission.
Chairman, Consumer Product Safety Commission.
Under Secretaries of Energy (3).
Chairman, Commodity Futures Trading Commission.
Deputy United States Trade Representatives (3).
Chief Agricultural Negotiator, Office of the United
States Trade Representative.
Chief Innovation and Intellectual Property
Negotiator, Office of the United States Trade
Representative.
Chairman, United States International Trade
Commission.
Under Secretary of Commerce for Oceans and
Atmosphere, the incumbent of which also serves as
Administrator of the National Oceanic and Atmospheric
Administration.
Under Secretary of Commerce for Standards and
Technology, who also serves as Director of the National
Institute of Standards and Technology.
Associate Attorney General.
Chairman, Federal Mine Safety and Health Review
Commission.
Chairman, National Credit Union Administration Board.
Deputy Director of the Office of Personnel
Management.
Under Secretary of Agriculture for Farm and Foreign
Agricultural Services.
Under Secretary of Agriculture for Food, Nutrition,
and Consumer Services.
Under Secretary of Agriculture for Natural Resources
and Environment.
Under Secretary of Agriculture for Research,
Education, and Economics.
Under Secretary of Agriculture for Food Safety.
Under Secretary of Agriculture for Marketing and
Regulatory Programs.
Director, Institute for Scientific and Technological
Cooperation.
Under Secretary of Agriculture for Rural Development.
Administrator, Maritime Administration.
Executive Director Property Review Board.
Deputy Administrator of the Environmental Protection
Agency.
Archivist of the United States.
Executive Director, Federal Retirement Thrift
Investment Board.
Principal Deputy Under Secretary of Defense for
Acquisition, Technology, and Logistics.
Director, Trade and Development Agency.
Under Secretary for Health, Department of Veterans
Affairs.
Under Secretary for Benefits, Department of Veterans
Affairs.
Under Secretary for Memorial Affairs, Department of
Veterans Affairs.
Under Secretaries, Department of Homeland Security.
Director of the Bureau of Citizenship and Immigration
Services.
Director of the Office of Government Ethics.
Administrator for Federal Procurement Policy.
Administrator, Office of Information and Regulatory
Affairs, Office of Management and Budget.
Director of the Office of Thrift Supervision.
Chairperson of the Federal Housing Finance Board.
Executive Secretary, National Space Council.
Controller, Office of Federal Financial Management,
Office of Management and Budget.
Administrator, Office of the Assistant Secretary for
Research and Technology of the Department of
Transportation.
Deputy Director for Demand Reduction, Office of
National Drug Control Policy.
Deputy Director for Supply Reduction, Office of
National Drug Control Policy.
Deputy Director for State and Local Affairs, Office
of National Drug Control Policy.
Under Secretary of Commerce for Intellectual Property
and Director of the United States Patent and Trademark
Office.
Register of Copyrights.
Commissioner of U.S. Customs and Border Protection,
Department of Homeland Security
Under Secretary of Education
Administrator of the Centers for Medicare & Medicaid
Services.
Administrator of the Office of Electronic Government.
Administrator, Pipeline and Hazardous Materials
Safety Administration.
Director, Pension Benefit Guaranty Corporation.
Deputy Administrators, Federal Emergency Management
Agency.
Chief Executive Officer, International Clean Energy
Foundation.
Independent Member of the Financial Stability
Oversight Council (1).
Director of the Office of Financial Research.
Sec. 5315. Positions at level IV
Level IV of the Executive Schedule applies to the following
positions, for which the annual rate of basic pay shall be the
rate determined with respect to such level under chapter 11 of
title 2, as adjusted by section 5318 of this title:
Deputy Administrator of General Services.
Associate Administrator of the National Aeronautics
and Space Administration.
Assistant Administrators, Agency for International
Development (6).
Regional Assistant Administrators, Agency for
International Development (4).
Assistant Secretaries of Agriculture (3).
Assistant Secretaries of Commerce (11).
Assistant Secretaries of Defense (14).
Assistant Secretaries of the Air Force (4).
Assistant Secretaries of the Army (5).
Assistant Secretaries of the Navy (4).
Assistant Secretaries of Health and Human Services
(6).
Assistant Secretaries of the Interior (6).
Assistant Attorneys General (11).
Assistant Secretaries of Labor (10), one of whom
shall be the Assistant Secretary of Labor for Veterans'
Employment and Training.
Administrator, Wage and Hour Division, Department of
Labor.
Assistant Secretaries of State (24) and 4 other State
Department officials to be appointed by the President,
by and with the advice and consent of the Senate.
Assistant Secretaries of the Treasury (10).
Members, United States International Trade Commission
(5).
Assistant Secretaries of Education (10).
General Counsel, Department of Education.
Director of Civil Defense, Department of the Army.
Deputy Director of the Office of Emergency Planning.
Deputy Director of the Office of Science and
Technology.
Deputy Director of the Peace Corps.
Assistant Directors of the Office of Management and
Budget (3).
General Counsel of the Department of Agriculture.
General Counsel of the Department of Commerce.
General Counsel of the Department of Defense.
General Counsel of the Department of Health and Human
Services.
Solicitor of the Department of the Interior.
Solicitor of the Department of Labor.
General Counsel of the National Labor Relations
Board.
General Counsel of the Department of the Treasury.
First Vice President of the Export-Import Bank of
Washington.
Members, Council of Economic Advisers.
Members, Board of Directors of the Export-Import Bank
of Washington.
Members, Federal Communications Commission.
Member, Board of Directors of the Federal Deposit
Insurance Corporation.
Directors, Federal Housing Finance Board.
Members, Federal Energy Regulatory Commission.
Members, Federal Trade Commission.
Members, Surface Transportation Board.
Members, National Labor Relations Board.
Members, Securities and Exchange Commission.
Members, Merit Systems Protection Board.
Members, Federal Maritime Commission.
Members, National Mediation Board.
Members, Railroad Retirement Board.
Director of Selective Service.
Associate Director of the Federal Bureau of
Investigation, Department of Justice.
Members, Equal Employment Opportunity Commission (4).
Director, Community Relations Service.
Members, National Transportation Safety Board.
General Counsel, Department of Transportation.
Deputy Administrator, Federal Aviation
Administration.
Assistant Secretaries of Transportation (5).
Deputy Federal Highway Administrator.
Administrator of the Saint Lawrence Seaway
Development Corporation.
Assistant Secretary for Science, Smithsonian
Institution.
Assistant Secretary for History and Art, Smithsonian
Institution.
Deputy Administrator of the Small Business
Administration.
Assistant Secretaries of Housing and Urban
Development (8).
General Counsel of the Department of Housing and
Urban Development.
Commissioner of Interama.
Federal Insurance Administrator, Federal Emergency
Management Agency.
[Executive Vice President, Overseas Private
Investment Corporation.]
Members, National Credit Union Administration Board
(2).
Members, Postal Regulatory Commission (4).
Members, Occupational Safety and Health Review
Commission.
Deputy Under Secretaries of the Treasury (or
Assistant Secretaries of the Treasury) (2).
Members, Consumer Product Safety Commission (4).
Members, Commodity Futures Trading Commission.
Director of Nuclear Reactor Regulation, Nuclear
Regulatory Commission.
Director of Nuclear Material Safety and Safeguards,
Nuclear Regulatory Commission.
Director of Nuclear Regulatory Research, Nuclear
Regulatory Commission.
Executive Director for Operations, Nuclear Regulatory
Commission.
President, Government National Mortgage Association,
Department of Housing and Urban Development.
Assistant Secretary of Commerce for Oceans and
Atmosphere, the incumbent of which also serves as
Deputy Administrator of the National Oceanic and
Atmospheric Administration.
Director, Bureau of Prisons, Department of Justice.
Assistant Secretaries of Energy (8).
General Counsel of the Department of Energy.
Administrator, Economic Regulatory Administration,
Department of Energy.
Administrator, Energy Information Administration,
Department of Energy.
Director, Office of Indian Energy Policy and
Programs, Department of Energy.
Director, Office of Science, Department of Energy.
Assistant Secretary of Labor for Mine Safety and
Health.
Members, Federal Mine Safety and Health Review
Commission.
President, National Consumer Cooperative Bank.
Special Counsel of the Merit Systems Protection
Board.
Chairman, Federal Labor Relations Authority.
Assistant Secretaries, Department of Homeland
Security.
General Counsel, Department of Homeland Security.
Officer for Civil Rights and Civil Liberties,
Department of Homeland Security.
Chief Financial Officer, Department of Homeland
Security.
Chief Information Officer, Department of Homeland
Security.
Deputy Director, Institute for Scientific and
Technological Cooperation.
Director of the National Institute of Justice.
Director of the Bureau of Justice Statistics.
Chief Counsel for Advocacy, Small Business
Administration.
Assistant Administrator for Toxic Substances,
Environmental Protection Agency.
Assistant Administrator, Office of Solid Waste,
Environmental Protection Agency.
Assistant Administrators, Environmental Protection
Agency (8).
Director of Operational Test and Evaluation,
Department of Defense.
Director of Cost Assessment and Program Evaluation,
Department of Defense.
Special Representatives of the President for arms
control, nonproliferation, and disarmament matters,
Department of State.
Ambassadors at Large.
Assistant Secretary of Commerce and Director General
of the United States and Foreign Commercial Service.
Assistant Secretaries, Department of Veterans Affairs
(7).
General Counsel, Department of Veterans Affairs.
Commissioner of Food and Drugs, Department of Health
and Human Services
Chairman, Board of Veterans' Appeals.
Administrator, Office of Juvenile Justice and
Delinquency Prevention.
Director, United States Marshals Service.
Chairman, United States Parole Commission.
Director, Bureau of the Census, Department of
Commerce.
Director of the Institute of Museum and Library
Services.
Chief Financial Officer, Department of Agriculture.
Chief Financial Officer, Department of Commerce.
Chief Financial Officer, Department of Education.
Chief Financial Officer, Department of Energy.
Chief Financial Officer, Department of Health and
Human Services.
Chief Financial Officer, Department of Housing and
Urban Development.
Chief Financial Officer, Department of the Interior.
Chief Financial Officer, Department of Justice.
Chief Financial Officer, Department of Labor.
Chief Financial Officer, Department of State.
Chief Financial Officer, Department of
Transportation.
Chief Financial Officer, Department of the Treasury.
Chief Financial Officer, Department of Veterans
Affairs.
Chief Financial Officer, Environmental Protection
Agency.
Chief Financial Officer, National Aeronautics and
Space Administration.
Commissioner, Office of Navajo and Hopi Indian
Relocation.
Deputy Under Secretary of Defense for Research and
Engineering.
Deputy Under Secretary of Defense for Acquisition and
Sustainment.
Deputy Under Secretary of Defense for Policy.
Deputy Under Secretary of Defense for Personnel and
Readiness.
Deputy Under Secretary of Defense (Comptroller).
Deputy Under Secretary of Defense for Intelligence.
General Counsel of the Department of the Army.
General Counsel of the Department of the Navy.
General Counsel of the Department of the Air Force.
Liaison for Community and Junior Colleges, Department
of Education.
Director of the Office of Educational Technology.
Director of the International Broadcasting Bureau.
The Commissioner of Labor Statistics, Department of
Labor.
Administrator, Rural Utilities Service, Department of
Agriculture.
Chief Information Officer, Department of Agriculture.
Chief Information Officer, Department of Commerce.
Chief Information Officer, Department of Defense
(unless the official designated as the Chief
Information Officer of the Department of Defense is an
official listed under section 5312, 5313, or 5314 of
this title).
Chief Information Officer, Department of Education.
Chief Information Officer, Department of Energy.
Chief Information Officer, Department of Health and
Human Services.
Chief Information Officer, Department of Housing and
Urban Development.
Chief Information Officer, Department of the
Interior.
Chief Information Officer, Department of Justice.
Chief Information Officer, Department of Labor.
Chief Information Officer, Department of State.
Chief Information Officer, Department of
Transportation.
Chief Information Officer, Department of the
Treasury.
Chief Information Officer, Department of Veterans
Affairs.
Chief Information Officer, Environmental Protection
Agency.
Chief Information Officer, National Aeronautics and
Space Administration.
Chief Information Officer, Agency for International
Development.
Chief Information Officer, Federal Emergency
Management Agency.
Chief Information Officer, General Services
Administration.
Chief Information Officer, National Science
Foundation.
Chief Information Officer, Nuclear Regulatory Agency.
Chief Information Officer, Office of Personnel
Management.
Chief Information Officer, Small Business
Administration.
Chief Information Officer of the Intelligence
Community.
General Counsel of the Central Intelligence Agency.
Principal Deputy Administrator, National Nuclear
Security Administration.
Additional Deputy Administrators of the National
Nuclear Security Administration (3), but if the Deputy
Administrator for Naval Reactors is an officer of the
Navy on active duty, (2).
Deputy Under Secretary of Commerce for Intellectual
Property and Deputy Director of the United States
Patent and Trademark Office.
General Counsel of the Office of the Director of
National Intelligence.
Chief Medical Officer, Department of Homeland
Security.
Sec. 5316. Positions at level V
Level V of the Executive Schedule applies to the following
positions, for which the annual rate of basic pay shall be the
rate determined with respect to such level under chapter 11 of
title 2, as adjusted by section 5318 of this title:
Administrator, Bonneville Power Administration,
Department of the Interior.
Administrator of the National Capital Transportation
Agency.
Associate Administrators of the Small Business
Administration (4).
Associate Administrators, National Aeronautics and
Space Administration (7).
Associate Deputy Administrator, National Aeronautics
and Space Administration.
Deputy Associate Administrator, National Aeronautics
and Space Administration.
Archivist of the United States.
Assistant Secretary of Health and Human Services for
Administration.
Assistant Attorney General for Administration.
Assistant and Science Adviser to the Secretary of the
Interior.
Chairman, Foreign Claims Settlement Commission of the
United States, Department of Justice.
Chairman of the Renegotiation Board.
Chairman of the Subversive Activities Control Board.
Chief Counsel for the Internal Revenue Service,
Department of the Treasury.
Commissioner, Federal Acquisition Service, General
Services Administration.
Director, United States Fish and Wildlife Service,
Department of the Interior.
Commissioner of Indian Affairs, Department of the
Interior.
Commissioners, Indian Claims Commission (5).
Commissioner, Public Buildings Service, General
Services Administration.
Commissioner of Reclamation, Department of the
Interior.
Commissioner of Vocational Rehabilitation, Department
of Health and Human Services.
Commissioner of Welfare, Department of Health and
Human Services.
Director, Bureau of Mines, Department of the
Interior.
Director, Geological Survey, Department of the
Interior.
Deputy Commissioner of Internal Revenue, Department
of the Treasury.
Associate Director of the Federal Mediation and
Conciliation Service.
Associate Director for Volunteers, Peace Corps.
Associate Director for Program Development and
Operations, Peace Corps.
Assistants to the Director of the Federal Bureau of
Investigation, Department of Justice (2).
Assistant Directors, Office of Emergency Planning
(3).
Fiscal Assistant Secretary of the Treasury.
General Counsel of the Agency for International
Development.
General Counsel of the Nuclear Regulatory Commission.
General Counsel of the National Aeronautics and Space
Administration.
Manpower Administrator, Department of Labor.
Members, Renegotiation Board.
Members, Subversive Activities Control Board.
Assistant Administrator of General Services.
Director, United States Travel Service, Department of
Commerce.
Assistant Director (Program Planning, Analysis and
Research), Office of Economic Opportunity.
Deputy Director, National Security Agency.
Director, Bureau of Land Management, Department of
the Interior.
Director, National Park Service, Department of the
Interior.
National Export Expansion Coordinator, Department of
Commerce.
Staff Director, Commission on Civil Rights.
Assistant Secretary for Administration, Department of
Transportation.
Director, United States National Museum, Smithsonian
Institution.
Director, Smithsonian Astrophysical Observatory,
Smithsonian Institution.
Administrator of the Environmental Science Services
Administration.
Associate Directors of the Office of Personnel
Management (5).
Assistant Federal Highway Administrator.
Deputy Administrator of the National Highway Traffic
Safety Administration.
Deputy Administrator of the Federal Motor Carrier
Safety Administration.
Assistant Federal Motor Carrier Safety Administrator.
Director, Bureau of Narcotics and Dangerous Drugs,
Department of Justice.
[Vice Presidents, Overseas Private Investment
Corporation (3).]
Deputy Administrator, Federal Transit Administration,
Department of Transportation.
General Counsel of the Equal Employment Opportunity
Commission.
Executive Director, Advisory Council on Historic
Preservation.
Additional Officers, Department of Energy (14).
Additional officers, Nuclear Regulatory Commission
(5).
Assistant Administrator for Coastal Zone Management,
National Oceanic and Atmospheric Administration.
Assistant Administrator for Fisheries, National
Oceanic and Atmospheric Administration.
Assistant Administrators (3), National Oceanic and
Atmospheric Administration.
General Counsel, National Oceanic and Atmospheric
Administration.
Members, Federal Labor Relations Authority (2) and
its General Counsel.
Additional officers, Institute for Scientific and
Technological Cooperation (2).
Additional officers, Office of Management and Budget
(6).
Chief Scientist, National Oceanic and Atmospheric
Administration.
Director, Indian Health Service, Department of Health
and Human Services.
Commissioners, United States Parole Commission (8).
Commissioner, Administration on Children, Youth, and
Families.
Chairman of the Advisory Council on Historic
Preservation.
* * * * * * *
----------
FOREIGN ASSISTANCE ACT OF 1961
* * * * * * *
PART I
* * * * * * *
CHAPTER 2--OTHER PROGRAMS
* * * * * * *
Title IV--OVERSEAS PRIVATE INVESTMENT CORPORATION]
[Sec. 231. Creation, Purpose and Policy.-- To mobilize and
facilitate the participation of United States private capital
and skills in the economic and social development of less
developed countries and areas, and countries in transition from
nonmarket to market economies, thereby complementing the
development assistance objectives of the United States, there
is hereby created the Overseas Private Investment Corporation
(hereinafter called the ``Corporation''), which shall be an
agency of the United States under the policy guidance of the
Secretary of State.
[The Corporation, in determining whether to provide
insurance, financing, or reinsurance for a project, shall
especially--
[(1) be guided by the economic and social development
impact and benefits of such a project and the ways in
which such a project complements, or is compatible
with, other development assistance programs or projects
of the United States or other donors;
[(2) give preferential consideration to investment
projects in less developed countries that have per
capita incomes of $984 or less in 1986 United States
dollars, and restrict its activities with respect to
investment projects in less developed countries that
have per capita incomes of $4,269 or more in 1986
United States dollars (other than countries designated
as beneficiary countries under section 212 of the
Caribbean Basin Economic Recovery Act (19 U.S.C. 2702),
Ireland, and Northern Ireland); and
[(3) ensures that the project is consistent with the
provisions of section 117 (as so redesignated by the
Special Foreign Assistance Act of 1986), section 118,
and section 119 of this Act relating to the environment
and natural resources of, and tropical forests and
endangered species in, developing countries, and
consistent with the intent of regulations issued
pursuant to sections 118 and 119 of this Act.In
carrying out its purpose, the Corporation, utilizing
broad criteria, shall undertake--
[(a) to conduct financing, insurance, and reinsurance
operations on a self-sustaining basis, taking into
account in its financing operations the economic and
financial soundness of projects;
[(b) to utilize private credit and investment
institutions and the Corporation's guaranty authority
as the principal means of mobilizing capital investment
funds;
[(c) to broaden private participation and revolve its
funds through selling its direct investments to private
investors whenever it can appropriately do so on
satisfactory terms;
[(d) to conduct its insurance operations with due
regard to principles of risk management including
efforts to share its insurance risks and reinsurance
risks;
[(e) to the maximum degree possible consistent with
its purposes--
[(1) to give preferential consideration in
its investment insurance, reinsurance, and
guaranty activities to investment projects
sponsored by or involving United States small
business; and
[(2) to increase the proportion of projects
sponsored by or significantly involving United
States small business to at least 30 percent of
all projects insured, reinsured, or guaranteed
by the Corporation;
[(f) to consider in the conduct of its operations the
extent to which less developed country governments are
receptive to private enterprise, domestic and foreign,
and their willingness and ability to maintain
conditions which enable private enterprise to make its
full contribution to the development process;
[(g) to foster private initiative and competition and
discourage monopolistic practices;
[(h) to further to the greatest degree possible, in a
manner consistent with its goals, the balance-of-
payments and employment objectives of the United
States;
[(i) to conduct its activities in consonance with the
activities of the agency primarily responsible for
administering part I and the international trade,
investment, and financial policies of the United States
Government, and to seek to support those developmental
projects having positive trade benefits for the United
States;
[(j) to advise and assist, within its field of
competence, interested agencies of the United States
and other organizations, both public and private,
national and international, with respect to projects
and programs relating to the development of private
enterprise in less developed countries and areas;
[(k)(1) to decline to issue any contract of insurance
or reinsurance, or any guaranty, or to enter into any
agreement to provide financing for an eligible
investor's proposed investment if the Corporation
determines that such investment is likely to cause such
investor (or the sponsor of an investment project in
which such investor is involved) significantly to
reduce the number of his employees in the United States
because he is replacing his United States production
with production from such investment which involves
substantially the same product for substantially the
same market as his United States production; and (2) to
monitor conformance with the representations of the
investor on which the Corporation relied in making the
determination required by clause (1);
[(l) to decline to issue any contract of insurance or
reinsurance, or any guaranty, or to enter into any
agreement to provide financing for an eligible
investor's proposed investment if the Corporation
determines that such investment is likely to cause a
significant reduction in the number of employees in the
United States;
[(m) to refuse to insure, reinsure, or finance any
investment subject to performance requirements which
would reduce substantially the positive trade benefits
likely to accrue to the United States from the
investment; and
[(n) to refuse to insure, reinsure, guarantee, or
finance any investment in connection with a project
which the Corporation determines will pose an
unreasonable or major environmental, health, or safety
hazard, or will result in the significant degradation
of national parks or similar protected areas.
[Sec. 231A. Additional Requirements.--(a) Worker Rights.--
[(1) Limitation on OPIC Activities.--The Corporation
may insure, reinsure, guarantee, or finance a project
only if the country in which the project is to be
undertaken is taking steps to adopt and implement laws
that extend internationally recognized worker rights,
as defined in section 507(4) of the Trade Act of 1974,
to workers in that country (including any designated
zone in that country). The Corporation shall also
include the following language, in substantially the
following form, in all contracts which the Corporation
enters into with eligible investors to provide
financial support under this title:
``The investor agrees not to take actions to prevent
employees of the foreign enterprise from lawfully
exercising their right of association and their right
to organize and bargain collectively. The investor
further agrees to observe applicable laws relating to a
minimum age for employment of children, acceptable
conditions of work with respect to minimum wages, hours
of work, and occupational health and safety, and not to
use forced labor. The investor is not responsible under
this paragraph for the actions of a foreign
government.''
[(2) Use of Annual Reports on Workers Rights.--The
Corporation shall, in making its determinations under
paragraph (1), use the reports submitted to the
Congress pursuant to section 504 of the Trade Act of
1974. The restriction set forth in paragraph (1) shall
not apply until the first such report is submitted to
the Congress.
[(3) Waiver.--Paragraph (1) shall not prohibit the
Corporation from providing any insurance, reinsurance,
guaranty, or financing with respect to a country if the
President determines that such activities by the
Corporation would be in the national economic interests
of the United States. Any such determination shall be
reported in writing to the Congress, together with the
reasons for the determination.
[(4) In making a determination under this section for
the People's Republic of China, the Corporation shall
discuss fully and completely the justification for
making such determination with respect to each item set
forth in subparagraphs (A) through (E) of section
507(4) of the Trade Act of 1974.
[(b) Environmental Impact.--The Board of Directors of the
Corporation shall not vote in favor of any action proposed to
be taken by the Corporation that is likely to have significant
adverse environmental impacts that are sensitive, diverse, or
unprecedented, unless for at least 60 days before the date of
the vote--
[(1) an environmental impact assessment or initial
environmental audit, analyzing the environmental
impacts of the proposed action and of alternatives to
the proposed action has been completed by the project
applicant and made available to the Board of Directors;
and
[(2) such assessment or audit has been made available
to the public of the United States, locally affected
groups in the host country, and host country
nongovernmental organizations.
[(c) Public Hearings.--(1) The Board shall hold at least one
public hearing each year in order to afford an opportunity for
any person to present views as to whether the Corporation is
carrying out its activities in accordance with section 231 and
this section or whether any investment in a particular country
should have been or should be extended insurance, reinsurance,
guarantees, or financing under this title.
[(2) In conjunction with each meeting of its Board of
Directors, the Corporation shall hold a public hearing in order
to afford an opportunity for any person to present views
regarding the activities of the Corporation. Such views shall
be made part of the record.
[Sec. 232. Capital of the Corporation.-- The President is
authorized to pay in as capital of the Corporation, out of
dollar receipts made available through the appropriation
process from loans made pursuant to this part and from loans
made under the Mutual Security Act of 1954, as amended, for the
fiscal year 1970 not to exceed $20,000,000 and for the fiscal
year 1971 not to exceed $20,000,000. Upon the payment of such
capital by the President, the Corporation shall issue an
equivalent amount of capital stock to the Secretary of the
Treasury.
[Sec. 233. Organization and Management.--(a) Structure of the
Corporation.--The Corporation shall have a Board of Directors,
a President, an Executive Vice President, and such other
officers and staff as the Board of Directors may determine.
[(b) Board of Directors.--All powers of the Corporation shall
vest in and be exercised by or under the authority of its Board
of Directors (``the Board'') which shall consist of fifteen
Directors, including the Chairman, with eight Directors
constituting a quorum for the transaction of business. Eight
Directors shall be appointed by the President of the United
States, by and with the advice and consent of the Senate, and
shall not be officials or employees of the Government of the
United States. At least two of the eight Directors appointed
under the preceding sentence shall be experienced in small
business, one in organized labor, and one in cooperatives. Each
such Director shall be appointed for a term of no more than
three years. The terms of no more than three such Directors
shall expire in any one year. Such Directors shall serve until
their successors are appointed and qualified and may be
reappointed.The other Directors shall be principal officers of
the Government of the United States whose duties relate to the
programs of the Corporation, including the President of the
Corporation, the Administrator of the Agency for International
Development, the United States Trade Representative, and one
such officer of the Department of Labor, designated by and
serving at the pleasure of the President of the United States.
The United States Trade Representative may designate a Deputy
United States Trade Representative to serve on the Board in
place of the United States Trade Representative.There shall be
a Chairman and a Vice Chairman of the Board, both of whom shall
be designated by the President of the United States from among
the Directors of the Board other than those appointed under the
second sentence of the first paragraph of this subsection.All
Directors who are not officers of the Corporation or officials
of the Government of the United States shall be compensated at
a rate equivalent to that of level IV of the Executive Schedule
(5 U.S.C. 5315) when actually engaged in the business of the
Corporation and may be paid per diem in lieu of subsistence at
the applicable rate prescribed in the standardized Government
travel regulations, as amended, from time to time, while away
from their homes or usual places of business.
[(c) President of the Corporation.--The President of the
Corporation shall be appointed by the President of the United
States, by and with the advice and consent of the Senate, and
shall serve at the pleasure of the President. In making such
appointment, the President shall take into account private
business experience of the appointee. The President of the
Corporation shall be its Chief Executive Officer and
responsible for the operations and management of the
Corporation, subject to bylaws and policies established by the
Board.
[(d) Officers and Staff.--The Executive Vice President of the
Corporation shall be appointed by the President of the United
States, by and with the advice and consent of the Senate, and
shall serve at the pleasure of the President. Other officers,
attorneys, employees, and agents shall be selected and
appointed by the Corporation, and shall be vested with such
powers and duties as the Corporation may determine. Of such
persons employed by the Corporation, not to exceed twenty may
be appointed, compensated, or removed without regard to the
civil service laws and regulations: Provided, That under such
regulations as the President of the United States may
prescribe, officers and employees of the United States
Government who are appointed to any of the above positions may
be entitled, upon removal from such position, except for cause,
to reinstatement to the position occupied at the time of
appointment or to a position of comparable grade and salary.
Such positions shall be in addition to those otherwise
authorized by law, including those authorized by section 5108
of title 5 of the United States Code.
[Sec. 234. Investment Insurance and Other Programs.-- The
Corporation is hereby authorized to do the following:
[(a) Investment Insurance.--(1) To issue insurance, upon such
terms and conditions as the Corporation may determine, to
eligible investors assuring protection in whole or in part
against any or all of the following risks with respect to
projects which the Corporation has approved--
[(A) inability to convert into United States dollars
other currencies, or credits in such currencies,
received as earnings or profits from the approved
project, as repayment or return of the investment
therein, in whole or in part, or as compensation for
the sale or disposition of all or any part thereof;
[(B) loss of investment, in whole or in part, in the
approved project due to expropriation or confiscation
by action of a foreign government or any political
subdivision thereof;
[(C) loss due to war, revolution, insurrection or
civil strife; and
[(D) loss due to business interruption caused by any
of the risks set forth in subparagraphs (A), (B), and
(C).
[(2) Recognizing that major private investments in less
developed friendly countries or areas are often made by
enterprises in which there is multinational participation,
including significant United States private participation, the
Corporation may make arrangements with foreign governments
(including agencies, instrumentalities, or political
subdivisions thereof) or with multilateral organizations and
institutions for sharing liabilities assumed under investment
insurance for such investments and may in connection therewith
issue insurance to investors not otherwise eligible hereunder,
except that liabilities assumed by the Corporation under the
authority of this subsection shall be consistent with the
purposes of this title and that the maximum share of
liabilities so assumed shall not exceed the proportionate
participation by eligible investors in the project.
[(3) Not more than 10 per centum of the maximum contingent
liability of investment insurance which the Corporation is
permitted to have outstanding under section 235(a)(1) shall be
issued to a single investor.
[(4) Before issuing insurance for the first time for loss due
to business interruption, and in each subsequent instance in
which a significant expansion is proposed in the type of risk
to be insured under the definition of ``civil strife'' or
``business interruption'', the Corporation shall, at least
sixty days before such insurance is issued, submit to the
Committee on Foreign Relations of the Senate and the Committee
on Foreign Affairs of the House of Representatives a report
with respect to such insurance, including a thorough analysis
of the risks to be covered, anticipated losses, and proposed
rates and reserves and, in the case of insurance for loss due
to business interruption, an explanation of the underwriting
basis upon which the insurance is to be offered. Any such
report with respect to insurance for loss due to business
interruption shall be considered in accordance with the
procedures applicable to reprogramming notifications pursuant
to section 634A of this Act.
[(b) Investment Guaranties.--To issue to eligible investors
guaranties of loans and other investments made by such
investors assuring against loss due to such risks and upon such
terms and conditions as the Corporation may determine:
Provided, however, That such guaranties on other than loan
investments shall not exceed 75 per centum of such investment:
Provided further, That except for loan investments for credit
unions made by eligible credit unions or credit union
associations, the aggregate amount of investment (exclusive of
interest and earnings) so guaranteed with respect to any
project shall not exceed, at the time of issuance of any such
guaranty, 75 per centum of the total investment committed to
any such project as determined by the Corporation, which
determination shall be conclusive for purposes of the
Corporation's authority to issue any such guaranty: Provided
further, That not more than 15 per centum of the maximum
contingent liability of investment guaranties which the
Corporation is permitted to have outstanding under section
235(a)(2) shall be issued to a single investor.
[(c) Direct Investment.--To make loans in United States
dollars repayable in dollars or loans in foreign currencies
(including, without regard to section 1415 of the Supplemental
Appropriation Act, 1953, such foreign currencies which the
Secretary of the Treasury may determine to be excess to the
normal requirements of the United States and the Director of
the Bureau of the Budget may allocate) to firms privately owned
or of mixed private and public ownership upon such terms and
conditions as the Corporation may determine. Loans may be made
under this subsection only for projects that are sponsored by
or significantly involve United States small business or
cooperatives.The Corporation may designate up to 25 percent of
any loan under this subsection for use in the development or
adaptation in the United States of new technologies or new
products or services that are to be used in the project for
which the loan is made and are likely to contribute to the
economic or social development of less developed countries.No
loan may be made under this subsection to finance any operation
for the extraction of oil or gas. The aggregate amount of loans
under this subsection to finance operations for the mining or
other extraction of any deposit of ore or other nonfuel
minerals may not in any fiscal year exceed $4,000,000.
[(d) Investment Encouragement.--To initiate and support
through financial participation, incentive grant, or otherwise,
and on such terms and conditions as the Corporation may
determine, the identification, assessment, surveying and
promotion of private investment opportunities, utilizing
wherever feasible and effective the facilities of private
investors, except that--
[(1) the Corporation shall not finance any survey to
ascertain the existence, location, extent, or quality
of, or to determine the feasibility of undertaking
operations for the extraction of, oil or gas; and
[(2) expenditures financed by the Corporation during
any fiscal year on surveys to ascertain the existence,
location, extent, or quality of, or to determine the
feasibility of undertaking operations for the
extraction of nonfuel minerals may not exceed $200,000.
[(e) Special Activities.--To administer and manage special
projects and programs, including programs of financial and
advisory support which provide private technical, professional,
or managerial assistance in the development of human resources,
skills, technology, capital savings and intermediate financial
and investment institutions and cooperatives and including the
initiation of incentives, grants, and studies for renewable
energy and other small business activities. The funds for these
projects and programs may, with the Corporation's concurrence,
be transferred to it for such purposes under the authority of
section 632(a) or from other sources, public or private.
Administrative funds may not be made available for incentives,
grants, and studies for renewable energy and other small
business activities.
[(f) Other Insurance Functions.--(1) To make and carry out
contracts of insurance or reinsurance, or agreements to
associate or share risks, with insurance companies, financial
institutions, any other persons, or groups thereof, and
employing the same where appropriate, as its agent, or acting
as their agent, in the issuance and servicing of insurance, the
adjustment of claims, the exercise of subrogation rights, the
ceding and accepting of reinsurance, and in any other matter
incident to an insurance business; except that such agreements
and contracts shall be consistent with the purposes of the
Corporation set forth in section 231 of this Act and shall be
on equitable terms.
[(2) To enter into pooling or other risk-sharing agreements
with multinational insurance or financing agencies or groups of
such agencies.
[(3) To hold an ownership interest in any association or
other entity established for the purposes of sharing risks
under investment insurance.
[(4) To issue, upon such terms and conditions as it may
determine, reinsurance of liabilities assumed by other insurers
or groups thereof in respect of risks referred to in subsection
(a)(1).The amount of reinsurance of liabilities under this
title which the Corporation may issue shall not in the
aggregate exceed at any one time an amount equal to the amount
authorized for the maximum contingent liability outstanding at
any one time under section 235(a)(1). All reinsurance issued by
the Corporation under this subsection shall require that the
reinsured party retain for his own account specified portions
of liability, whether first loss or otherwise.
[(g) Pilot Equity Finance Program.--
[(1) Authority for pilot program.--In order to study
the feasibility and desirability of a program of equity
financing, the Corporation is authorized to establish a
4-year pilot program under which it may, on the limited
basis prescribed in paragraphs (2) through (5),
purchase, invest in, or otherwise acquire equity or
quasi-equity securities of any firm or entity, upon
such terms and conditions as the Corporation may
determine, for the purpose of providing capital for any
project which is consistent with the provisions of this
title except that--
[(A) the aggregate amount of the
Corporation's equity investment with respect to
any project shall not exceed 30 percent of the
aggregate amount of all equity investment made
with respect to such project at the time that
the Corporation's equity investment is made,
except for securities acquired through the
enforcement of any lien, pledge, or contractual
arrangement as a result of a default by any
party under any agreement relating to the terms
of the Corporation's investment; and
[(B) the Corporation's equity investment
under this subsection with respect to any
project, when added to any other investments
made or guaranteed by the Corporation under
subsection (b) or (c) with respect to such
project, shall not cause the aggregate amount
of all such investment to exceed, at the time
any such investment is made or guaranteed by
the Corporation, 75 percent of the total
investment committed to such project as
determined by the Corporation.
The determination of the Corporation under subparagraph (B)
shall be conclusive for purposes of the Corporation's authority
to make or guarantee any such investment.
[(2) Limitation to projects in sub-saharan africa and
caribbean basin.--Equity investments may be made under
this subsection only in projects in countries eligible
for financing under this title that are countries in
sub-Saharan Africa or countries designated as
beneficiary countries under section 212 of the
Caribbean Basin Economy Recovery Act.
[(3) Additional criteria.--In making investment
decisions under this subsection, the Corporation shall
give preferential consideration to projects sponsored
by or significantly involving United States small
business or cooperatives. The Corporation shall also
consider the extent to which the Corporation's equity
investment will assist in obtaining the financing
required for the project.
[(4) Disposition of equity interest.--Taking into
consideration, among other things, the Corporations'
financial interests and the desirability of fostering
the development of local capital markets in less
developed countries, the Corporation shall endeavor to
dispose of any equity interest it may acquire under
this subsection within a period of 10 years from the
date of acquisition of such interest.
[(6) Consultations with congress.--The Corporation
shall consult annually with the Committee on Foreign
Affairs of the House of Representatives and the
Committee on Foreign Relations of the Senate on the
implementation of the pilot equity finance program
established under this subsection.
[(h) Local Currency Guaranties for Eligible Investors.--To
issue to--
[(1) eligible investors, or
[(2) local financial institutions, guaranties,
denominated in currencies other than United States dollars, of
loans and other investments made to projects sponsored by or
significantly involving eligible investors, assuring against
loss due to such risks and upon such terms and conditions as
the Corporation may determine, for projects that the
Corporation determines to have significant developmental
effects or as the Corporation determines to be necessary or
appropriate to carry out the purposes of this title.
[Sec. 234A. Enhancing Private Political Risk Insurance
Industry.
[(a) Cooperative Programs.--In order to encourage greater
availability of political risk insurance for eligible investors
by enhancing the private political risk insurance industry in
the United States, and to the extent consistent with this
title, the Corporation shall under take programs of cooperation
with such industry, and in connection with such programs may
engage in the following activities:
[(1) Utilizing its statutory authorities, encourage
the development of associations, pools, or consortia of
United States private political risk insurers.
[(2) Share insurance risks (through coinsurance,
contingent insurance, or other means) in a manner that
is conducive to the growth and development of the
private political risk insurance industry in the United
States.
[(3) Notwithstanding section 237(e), upon the
expiration of insurance provided by the Corporation for
an investment, enter into risk-sharing agreements with
United States private political risk insurers to insure
any such investment; except that, in cooperating in the
offering of insurance under this paragraph, the
Corporation shall not assume responsibility for more
than 50 percent of the insurance being offered in each
separate transaction.
[(b) Advisory Group.--
[(1) Establishment and membership.--The Corporation
shall establish a group to advise the Corporation on
the development and implementation of the cooperative
programs under this section. The group shall be
appointed by the Board and shall be composed of up to
12 members, including the following:
[(A) Up to seven persons from the private
political risk insurance industry, of whom no
fewer than two shall represent private
political risk insurers, one shall represent
private political risk reinsurers, and one
shall represent insurance or reinsurance
brokerage firms.
[(B) Up to four persons, other than persons
described in subparagraph (A), who are
purchasers of political risk insurance.
[(2) Functions.--The Corporation shall call upon
members of the advisory group, either collectively or
individually, to advise it regarding the capability of
the private political risk insurance industry to meet
the political risk insurance needs of United States
investors, and regarding the development of cooperative
programs to enhance such capability.
[(3) Meetings.--The advisory group shall meet not
later than September 30, 1989, and at least annually
thereafter. The Corporation may from time to time
convene meetings of selected members of the advisory
group to address particular questions requiring their
specialized knowledge.
[(4) Federal advisory committee act.--The advisory
group shall not be subject to the Federal Advisory
Committee Act (5 U.S.C. App.).
[Sec. 235. Issuing Authority, Direct Investment Authority and
Reserves.--
[(a) Issuing Authority.--
[(1) Insurance and financing.--(A) The maximum
contingent liability outstanding at any one time
pursuant to insurance issued under section 234(a), and
the amount of financing issued under sections 234(b)
and (c), shall not exceed in the aggregate
$29,000,000,000.
[(B) Subject to spending authority provided in
appropriations Acts pursuant to section 504(b) of the
Federal Credit Reform Act of 1990, the Corporation is
authorized to transfer such sums as are necessary from
its noncredit activities to pay for the subsidy and
administrative costs of the investment guaranties and
direct loan programs under subsections (b) and (c) of
section 234.
[(2) Termination of authority.--The authority of
subsections (a), (b), and (c) of section 234 shall
continue until September 30, 2007.
[(c) There shall be established in the Treasury of the United
States a noncredit account revolving fund, which shall be
available for discharge of liabilities, as provided in
subsection (d) of this section until such time as all such
liabilities have been discharged or have expired or until all
of the fund has been expended in accordance with the provisions
of this section. Such fund shall be funded by: (1) the funds
heretofore available to discharge liabilities under predecessor
guaranty authority (including housing guaranty authorities),
less both the amount made available for housing guaranty
programs pursuant to section 223(b) and the amount made
available to the Corporation pursuant to subsection (e) of this
section and (2) such sums as shall be appropriated pursuant to
subsection (f) of this section for such purposes. Additional
amounts may thereafter be transferred to such fund pursuant to
section 236.
[(d) Any payment made to discharge liabilities under
investment insurance or reinsurance issued under section 234
under similar predecessor guaranty authority or under section
234A, shall be paid first out of the noncredit account
revolving fund, as long as such fund remains available, and
thereafter out of funds made available pursuant to subsection
(f) of this section. Any payments made to discharge liabilities
under guaranties issued under section 234(b) or 234(c) shall be
paid in accordance with the Federal Credit Reform Act of 1990.
[(e) There is hereby authorized to be transferred to the
Corporation at its call, for the purposes specified in section
236, all fees and other revenues collected under predecessor
guaranty authority from December 31, 1968, available as of the
date of such transfer.
[(f) There are authorized to be appropriated to the
Corporation, to remain available until expended, such amounts
as may be necessary from time to time to replenish or increase
the noncredit account revolving fund, to discharge the
liabilities under insurance, reinsurance, or guaranties issued
by the Corporation or issued under predecessor guaranty
authority, or to discharge obligations of the Corporation
purchased by the Secretary of the Treasury pursuant to this
subsection. However, no appropriations shall be made to augment
the noncredit account revolving fund until the amount of funds
in the noncredit account revolving fund is less than
$25,000,000. Any appropriations to augment the noncredit
account revolving fund shall then only be made either pursuant
to specific authorization enacted after the date of enactment
of the Overseas Private Investment Corporation Amendments Act
of 1974, or to satisfy the full faith and credit provision of
section 237(c). In order to discharge liabilities under
investment insurance or reinsurance, the Corporation is
authorized to issue from time to time for purchase by the
Secretary of the Treasury its notes, debentures, bonds, or
other obligations; but the aggregate amount of such obligations
outstanding at any one time shall not exceed $100,000,000. Any
such obligation shall be repaid to the Treasury within one year
after the date of issue of such obligation. Any such obligation
shall bear interest at a rate determined by the Secretary of
the Treasury, taking into consideration the current average
market yield on outstanding marketable obligations of the
United States of comparable maturities during the month
preceding the issuance of any obligation authorized by this
subsection. The Secretary of the Treasury shall purchase any
obligation of the Corporation issued under this subsection, and
for such purchase he may use as a public debt transaction the
proceeds of the sale of any securities issued under the Second
Liberty Bond Act after the date of enactment of the Overseas
Private Investment Corporation Amendments Act of 1974. The
purpose for which securities may be issued under such Bond Act
shall include any such purchase.
[(1) $8,128,000 for fiscal year 1993; and
[(2) $11,000,000 for fiscal year 1994.
[Sec. 236. Income and Revenues.-- In order to carry out the
purposes of the Corporation, all revenues and income
transferred to or earned by the Corporation, from whatever
source derived, shall be held by the Corporation and shall be
available to carry out its purposes, including without
limitation--
[(a) payment of all expenses of the Corporation,
including investment promotion expenses;
[(b) transfers and additions to the insurance or
guaranty reserves, the Direct Investment Fund
established pursuant to section 235, and such other
funds or reserves as the Corporation may establish, at
such time and in such amounts as the Board may
determine; and
[(c) payment of dividends, on capital stock, which
shall consist of and be paid from net earnings of the
Corporation after payments, transfers, and additions
under subsections (a) and (b) hereof.]
Sec. 237. General Provisions Relating to Insurance Guaranty,
and Financing Program.--[(a) Insurance guaranties, and
reinsurance issued under this title shall cover investment made
in connection with projects in any less developed friendly
country or area with the government to which the President of
the United States has agreed to institute a program for
insurance, guaranties, or reinsurance.
[(b) The Corporation shall determine that suitable
arrangements exist for protecting the interest of the
Corporation in connection with any insurance, guaranty or
reinsurance issued under this title, including arrangements
concerning ownership, use, and disposition of the currency,
credits, assets, or investments on account of which payment
under such insurance, guaranty, or reinsurance is to be made,
and right, title, claim, or cause of action existing in
connection therewith.
[(c) All guaranties issued prior to July 1, 1956, all
guaranties issued under sections 202(b) and 413(b) of the
Mutual Security Act of 1954, as amended, all guaranties
heretofore issued pursuant to prior guaranty authorities
repealed by the Foreign Assistance Act of 1969, and all
insurance, reinsurance, and guaranties issued pursuant to this
title shall constitute obligations, in accordance with the
terms of such insurance, reinsurance, or guaranties, of the
United States of America and the full faith and credit of the
United States of America is hereby pledged for the full payment
and performance of such obligations.
[(d) Fees.--
[(1) In general.--Fees may be charged for providing
insurance, reinsurance, financing, and other services
under this title in amounts to be determined by the
Corporation. In the event fees charged for insurance,
reinsurance, financing, or other services are reduced,
fees to be paid under existing contracts for the same
type of insurance, reinsurance, financing, or services
and for similar guarantees issued under predecessor
guarantee authority may be reduced.
[(2) Credit transaction costs.--Project-specific
transaction costs incurred by the Corporation relating
to loan obligations or loan guarantee commitments
covered by the provisions of the Federal Credit Reform
Act of 1990, including the costs of project-related
travel and expenses for legal representation provided
by persons outside the Corporation and other similar
expenses which are charged to the borrower, shall be
paid out of the appropriate finance account established
pursuant to section 505(b) of such Act.
[(3) Noncredit transaction costs.--Fees paid for the
project-specific transaction costs and other direct
costs associated with services provided to specific
investors or potential investors pursuant to section
234 (other than those covered in paragraph (2)),
including financing, insurance, reinsurance, missions,
seminars, conferences, and other preinvestment
services, shall be available for obligation for the
purposes for which they were collected, notwithstanding
any other provision of law.
[(e) No insurance, guaranty, or reinsurance of any equity
investment shall extend beyond twenty years from the date of
issuance.
[(f) Compensation for insurance, reinsurance, or guaranties
issued under this title shall not exceed the dollar value, as
of the date of the investment, of the investment made in the
project with the approval of the Corporation plus interest,
earnings, or profits actually accrued on such investment to the
extent provided by such insurance, reinsurance, or guaranty,
except that the Corporation may provide that (1) appropriate
adjustments in the insured dollar value be made to reflect the
replacement cost of project assets, and (2) compensation for a
claim of loss under insurance of an equity investment may be
computed on the basis of the net book value attributable to
such equity investment on the date of loss. Notwithstanding the
preceding sentence, the Corporation shall limit the amount of
direct insurance and reinsurance issued by it under section 234
or 234A so that risk of loss as to at least 10 per centum of
the total investment of the insured and its affiliates in the
project is borne by the insured and such affiliates, except
that limitation shall not apply to direct insurance or
reinsurance of loans by banks or other financial institutions
to unrelated parties and (3) compensation for loss due to
business interruption may be computed on a basis to be
determined by the Corporation which reflects amounts lost.]
(g) No payment may be made under any guaranty, insurance or
reinsurance issued pursuant to this title for any loss arising
out of fraud or misrepresentation for which the party seeking
payment is responsible.
[(h) Insurance, guaranties, or reinsurance of a loan or
equity investment of an eligible investor in a foreign bank,
finance company, or other credit institution shall extend only
to such loan or equity investment and not to any individual
loan or equity investment made by such foreign bank, finance
company, or other credit institution.
[(i) Claims arising as a result of insurance, reinsurance or
guaranty operations under this title or under predecessor
guaranty authority may be settled, and disputes arising as a
result thereof may be arbitrated with the consent of the
parties, on such terms and conditions as the Corporation may
determine. Payment made pursuant to any such settlement, or as
a result of an arbitration award, shall be final and conclusive
notwithstanding any other provision of law.
[(j) Each guaranty contract executed by such officer or
officers as may be designated by the Board shall be
conclusively presumed to be issued in compliance with the
requirements of this Act.
[(k) In making a determination to issue insurance,
guaranties, or reinsurance under this title, the Corporation
shall consider the possible adverse effect of the dollar
investment under such insurance, guaranty, or reinsurance upon
the balance of payments of the United States.]
(l)(1) No payment may be made under any insurance or
reinsurance which is issued under this title on or after the
date of enactment of this subsection for any loss occurring
with respect to a project, if the preponderant cause of such
loss was an act by the investor seeking payment under this
title, by a person possessing majority ownership and control of
the investor at the time of the act, or by any agent of such
investor or controlling person, and a court of the United
States has entered a final judgment that such act constituted a
violation under the Foreign Corrupt Practices Act of 1977.
(2) Not later than 120 days after the date of enactment of
this subsection, the Corporation shall adopt regulations
setting forth appropriate conditions under which any person
convicted under the Foreign Corrupt Practices Act of 1977 for
an offense related to a project insured or otherwise supported
by the Corporation shall be suspended, for a period of not more
than five years, from eligibility to receive any insurance,
reinsurance, guaranty, loan, or other financial support
authorized by this title.
[(m)(1) Before finally providing insurance, reinsurance,
guarantees, or financing under this title for any
environmentally sensitive investment in connection with a
project in a country, the Corporation shall notify appropriate
government officials of that country of--
[(A) all guidelines and other standards adopted by
the International Bank for Reconstruction and
Development and any other international organization
relating to the public health or safety or the
environment which are applicable to the project; and
[(B) to the maximum extent practicable, any
restriction under any law of the United States relating
to public health or safety or the environment that
would apply to the project if the project were
undertaken in the United States.
The notification under the preceding sentence shall include a
summary of the guidelines, standards, and restrictions referred
to in subparagraphs (A) and (B), and may include any
environmental impact statement, assessment, review, or study
prepared with respect to the investment pursuant to section
239(g).
[(2) Before finally providing insurance, reinsurance,
guarantees, or financing for any investment subject to
paragraph (1), the Corporation shall take into account any
comments it receives on the project involved.
[(3) On or before September 30, 1986, the Corporation shall
notify appropriate government officials of a country of the
guidelines, standards, and legal restrictions described in
paragraph (1) that apply to any project in that country--
[(A) which the Corporation identifies as potentially
posing major hazards to public health and safety or the
environment; and
[(B) for which the Corporation provided insurance,
reinsurance, guarantees, or financing under this title
before the date of enactment of this subsection and
which is in the Corporation's portfolio on that date.]
(n) Penalties for Fraud.--Whoever knowingly makes any false
statement or report, or willfully overvalues any land,
property, or security, for the purpose of influencing in any
way the action of the Corporation with respect to any
insurance, reinsurance, guarantee, loan, equity investment, or
other activity of the Corporation under section 234 or any
change or extension of any such insurance, reinsurance,
guarantee, loan, equity investment, or activity, by renewal,
deferment of action or otherwise, or the acceptance, release,
or substitution of security therefor, shall be fined not more
than $1,000,000 or imprisoned not more than 30 years, or both.
[(o) Use of Local Currencies.--Direct loans or investments
made in order to preserve the value of funds received in
inconvertible foreign currency by the Corporation as a result
of activities conducted pursuant to section 234(a) shall not be
considered in determining whether the Corporation has made or
has outstanding loans or investments to the extent of any
limitation on obligations and equity investment imposed by or
pursuant to this title. The provisions of section 504(b) of the
Federal Credit Reform Act of 1990 shall not apply to direct
loan obligations made with funds described in this subsection.]
[Sec. 238. Definitions.-- As used in this title--
[(a) the term ``investment'' includes any
contribution or commitment of funds, commodities,
services, patents, processes, or techniques, in the
form of (1) a loan or loans to an approved project, (2)
the purchase of a share of ownership in any such
project, (3) participation in royalties, earnings, or
profits of any such project, and (4) the furnishing of
commodities or services pursuant to a lease or other
contract;
[(b) the term ``expropriation'' includes, but is not
limited to, any abrogation, repudiation, or impairment
by a foreign government, a political subdivision of a
foreign government, or a corporation owned or
controlled by a foreign government, of its own contract
with an investor with respect to a project, where such
abrogation, repudiation, or impairment is not caused by
the investor's own fault or misconduct, and materially
adversely affects the continued operation of the
project;
[(c) the term ``eligible investor'' means: (1) United
States citizens; (2) corporations, partnerships, or
other associations including nonprofit associations,
created under the laws of the United States any State
or territory thereof, or the District of Columbia, and
substantially beneficially owned by United States
citizens; and (3) foreign corporations, partnerships,
or other associations wholly owned by one or more such
United States citizens, corporations, partnerships, or
other associations: Provided however, That the
eligibility of such foreign corporation shall be
determined without regard to any shares, in aggregate
less than 5 per centum of the total issued and
subscribed share capital, held by other than the United
States owners: Provided further, That in the case of
any loan investment a final determination of
eligibility may be made at the time the insurance or
guaranty is issued; in all other cases, the investor
must be eligible at the time a claim arises as well as
the time the insurance or guaranty is issued;
[(d) the term ``noncredit account revolving fund''
means the account in which funds under section 236 and
all funds from noncredit activities are held;
[(e) the term ``noncredit activities'' means all
activities of the Corporation other than its loan
guarantee program under section 234(b) and its direct
loan program under section 234(c);
[(f) the term ``predecessor guaranty authority''
means prior guaranty authorities (other than housing
guaranty authorities) repealed by the Foreign
Assistance Act of 1969, section 202(b) and 413(b) of
the Mutual Security Act of 1954, as amended, and
section 111(b)(3) of the Economic Cooperation Act of
1948, as amended (exclusive of authority relating to
informational media guaranties); and
[(g) the term ``local financial institution''--
[(1) means any bank or financial institution
that is organized under the laws of any country
or area in which the Corporation operates; but
[(2) does not include a branch, however
organized, of a bank or other financial
institution that is organized under the laws of
a country in which the Corporation does not
operate.
[Sec. 239. General Provisions and Powers.--(a) The
Corporation shall have its principal office in the District of
Columbia and shall be deemed, for purposes of venue in civil
actions, to be resident thereof.
[(b) The President shall transfer to the Corporation, at such
time as he may determine, all obligations, assets and related
rights and responsibilities arising out of, or related to,
predecessor programs and authorities similar to those provided
for in section 234 (a), (b), and (d). Until such transfer, the
agency heretofore responsible for such predecessor programs
shall continue to administer such assets and obligations, and
such programs and activities authorized under this title as may
be determined by the President.
[(c)(1) The Corporation shall be subject to the applicable
provisions of chapter 91 of title 31, United States Code,
except as otherwise provided in this title.
[(2) An independent certified public accountant shall perform
a financial and compliance audit of the financial statements of
the Corporation at least once every three years, in accordance
with generally accepted Government auditing standards for a
financial and compliance audit, as issued by the Comptroller
General. The independent certified public accountant shall
report the results of such audit to the Board. The financial
statements of the Corporation shall be presented in accordance
with generally accepted accounting principles. These financial
statements and the report of the accountant shall be included
in a report which contains, to the extent applicable, the
information identified in section 9106 of title 31, United
States Code, and which the Corporation shall submit to the
Congress not later than six and one-half months after the end
of the last fiscal year covered by the audit. The General
Accounting Office may review the audit conducted by the
accountant and the report to the Congress in the manner and at
such times as the General Accounting Office considers
necessary.
[(3) In lieu of the financial and compliance audit required
by paragraph (2), the General Accounting Office shall, if the
Office considers it necessary or upon the request of the
Congress, audit the financial statements of the Corporation in
the manner provided in paragraph (2). The Corporation shall
reimburse the General Accounting Office for the full cost of
any audit conducted under this paragraph.
[(4) All books, accounts, financial records, reports, files,
workpapers, and property belonging to or in use by the
Corporation and the accountant who conducts the audit under
paragraph (2), which are necessary for purposes of this
subsection, shall be made available to the representatives of
the General Accounting Office.
[(d) To carry out the purposes of this title, the Corporation
is authorized to adopt and use a corporate seal, which shall be
judicially noticed; to sue and be sued in its corporate name;
to adopt, amend, and repeal bylaws governing the conduct of its
business and the performance of the powers and duties granted
to or imposed upon it by law; to acquire, hold or dispose of,
upon such terms and conditions as the Corporation may
determine, any property, real, personal, or mixed, tangible or
intangible, or any interest therein; to invest funds derived
from fees and other revenues in obligations of the United
States and to use the proceeds therefrom, including earnings
and profits, as it shall deem appropriate; to indemnify
directors, officers, employees and agents of the Corporation
for liabilities and expenses incurred in connection with their
Corporation activities; to require bonds of officers,
employees, and agents and pay the premiums therefor;
notwithstanding any other provision of law, to represent itself
or to contract for representation in all legal and arbitral
proceedings; to enter into limited-term contracts with
nationals of the United States for personal services to carry
out activities in the United States and abroad under
subsections (d) and (e) of section 234; to purchase, discount,
rediscount, sell, and negotiate, with or without its
endorsement or guaranty, and guarantee notes, participation
certificates, and other evidence of indebtedness (provided that
the Corporation shall not issue its own securities, except
participation certificates for the purpose of carrying out
section 231(c) or participation certificates as evidence of
indebtedness held by the Corporation in connection with
settlement of claims under section 237(i)); to make and carry
out such contracts and agreements as are necessary and
advisable in the conduct of its business; to exercise the
priority of the Government of the United States in collecting
debts from bankrupt, insolvent, or decedents' estates; to
determine the character of and the necessity for its
obligations and expenditures, and the manner in which they
shall be incurred, allowed, and paid, subject to provisions of
law specifically applicable to Government corporations; to
collect or compromise any obligations assigned to or held by
the Corporation, including any legal or equitable rights
accruing to the Corporation; and to take such actions as may be
necessary or appropriate to carry out the powers herein or
hereafter specifically conferred upon it.
[(e) The Inspector General of the Agency for International
Development (1) may conduct reviews, investigations, and
inspections of all phases of the Corporation's operations and
activities and (2) shall conduct all security activities of the
Corporation relating to personnel and the control of classified
material. With respect to his responsibilities under this
subsection, the Inspector General shall report to the Board.
The agency primarily responsible for administering part I shall
be reimbursed by the Corporation for all expenses incurred by
the Inspector General in connection with his responsibilities
under this subsection.
[(f) Except for the provisions of this title, no other
provision of this or any other law shall be construed to
prohibit the operation in Yugoslavia, Poland, Hungary, or any
other East European country, or the People's Republic of China,
or Pakistan of the programs authorized by this title, if the
President determines that the operation of such program in such
country is important to the national interest.
[(g) The requirements of section 117(c) of this Act relating
to environmental impact statements and environmental
assessments shall apply to any investment which the Corporation
insures, reinsures, guarantees, or finances under this title in
connection with a project in a country.
[(h) In order to carry out the policy set forth in paragraph
(1) of the second undesignated paragraph of section 231 of this
Act, the Corporation shall prepare and maintain for each
investment project it insures, finances, or reinsures, a
development impact profile consisting of data appropriate to
measure the projected and actual effects of such project on
development. Criteria for evaluating projects shall be
developed in consultation with the Agency for International
Development.
[(i) The Corporation shall take into account in the conduct
of its programs in a country, in consultation with the
Secretary of State, all available information about observance
of and respect for human rights and fundamental freedoms in
such country and the effect the operation of such programs will
have on human rights and fundamental freedoms in such country.
The provisions of section 116 of this Act shall apply to any
insurance, reinsurance, guaranty, or loan issued by the
Corporation for projects in a country, except that in addition
to the exception (with respect to benefiting needy people) set
forth in subsection (a) of such section, the Corporation may
support a project if the national security interest so
requires.
[(j) The Corporation, including its franchise, capital,
reserves, surplus, advances, intangible property, and income,
shall be exempt from all taxation at any time imposed by the
United States, by any territory, dependency, or possession of
the United States, or by any State, the District of Columbia,
or any county, municipality, or local taxing authority.
[(k) The Corporation shall publish, and make available to
applicants for insurance, reinsurance, guarantees, financing,
or other assistance made available by the Corporation under
this title, the policy guidelines of the Corporation relating
to its programs.
[Sec. 240. Small Business Development.--(a) In General.--The
Corporation shall undertake, in cooperation with appropriate
departments, agencies, and instrumentalities of the United
States as well as private entities and others, to broaden the
participation of United States small business, cooperatives,
and other small United States investors in the development of
small private enterprise in less developed friendly countries
or areas. The Corporation shall allocate up to 50 percent of
its annual net income, after making suitable provision for
transfers and additions to reserves, to assist and facilitate
the development of projects consistent with the provisions of
this section. Such funds may be expended, notwithstanding the
requirements of section 231(a), on such terms and conditions as
the Corporation may determine, through loans, grants, or other
programs authorized by section 234 and section 234A.
[(b) Outreach to Minority-Owned and Women-Owned Businesses.--
The Corporation shall collect data on the involvement of
minority- and women-owned businesses in projects supported by
the Corporation, including--
[(1) the amount of insurance and financing provided
by the Corporation to such businesses in connection
with projects supported by the Corporation; and
[(2) to the extent such information is available, the
involvement of such businesses in procurement
activities conducted or supported by the Corporation.
The Corporation shall include, in its annual report submitted
to the Congress under section 240A, the aggregate data
collected under this paragraph, in such form as to quantify the
effectiveness of the Corporation's outreach activities to
minority- and women-owned businesses.
[Sec. 240A. Reports to the Congress.-- After (a) the end of
each fiscal year, the Corporation shall submit to the Congress
a complete and detailed report of its operations during such
fiscal year. Such report shall include--
[(1) an assessment, based upon the development impact
profiles required by section 239(h), of the economic
and social development impact and benefits of the
projects with respect to which such profiles are
prepared, and of the extent to which the operations of
Corporation complement or are compatible with the
development assistance programs of the United States
and other donors; and
[(2) a description of any project for which the
Corporation--
[(A) refused to provide any insurance,
reinsurance, guaranty, financing, or other
financial support, on account of violations of
human rights referred to in section 239(i); or
[(B) notwithstanding such violations,
provided such insurance, reinsurance, guaranty,
financing, or financial support, on the basis
of a determination (i) that the project will
directly benefit the needy people in the
country in which the project is located, or
(ii) that the national security interest so
requires.
[(b)(1) Each annual report required by subsection (a) shall
contain projections of the effects on employment in the United
States of all projects for which, during the preceding fiscal
year, the Corporation initially issued any insurance,
reinsurance, or guaranty or made any direct loan. Each such
report shall include projections of--
[(A) the amount of United States exports to be
generated by those projects, both during the start-up
phase and over a period of years;
[(B) the final destination of the products to be
produced as a result of those projects; and
[(C) the impact such production will have on the
production of similar products in the United States
with regard to both domestic sales and exports.
[(2) The projections required by this subsection shall be
based on an analysis of each of the projects described in
paragraph (1).
[(3) In reporting the projections on employment required by
this subsection, the Corporation shall specify, with respect to
each project--
[(A) any loss of jobs in the United States caused by
the project, whether or not the project itself creates
other jobs;
[(B) any jobs created by the project; and
[(C) the country in which the project is located, and
the economic sector involved in the project.
No proprietary information may be disclosed under this
paragraph.
[(d) The Corporation shall maintain as part of its records--
[(1) all information collected in preparing the
report required by subsection (c) (as in effect before
the enactment of the Overseas Private Investment
Corporation Amendments Act of 1988), whether the
information was collected by the Corporation itself or
by a contractor; and
[(2) a copy of the analysis of each project analyzed
in preparing the reports required by either subsection
(b) or (c) (as in effect before the enactment of the
Overseas Private Investment Corporation Amendments Act
of 1988).
[(e) Each annual report required by subsection (a) shall
include an assessment of programs implemented by the
Corporation under section 234A(a), including the following
information, to the extent such information is available to the
Corporation:
[(1) The nature and dollar value of political risk
insurance provided by private insurers in conjunction
with the Corporation, which the Corporation was not
permitted to provide under this title.
[(2) The nature and dollar value of political risk
insurance provided by private insurers in conjunction
with the Corporation, which the Corporation was
permitted to provide under this title.
[(3) The manner in which such private insurers and
the Corporation cooperated in recovery efforts and
claims management.
[(f) Subsections (b) and (e) do not require the inclusion in
any report submitted pursuant to those subsections of any
information which would not be required to be made available to
the public pursuant to section 552 of title 5, United States
Code (relating to freedom of information).
[SEC. 240B. PROHIBITION ON NONCOMPETITIVE AWARDING OF INSURANCE
CONTRACTS ON OPIC SUPPORTED EXPORTS.
[(a) Requirement for Certification.--
[(1) In general.--Except as provided in paragraph
(3), the investor on whose behalf insurance,
reinsurance, guaranties, or other financing is provided
under this title with respect to a project shall be
required to certify to the Corporation that any
contract for the export of goods as part of that
project will include a clause requiring that United
States insurance companies have a fair and open
competitive opportunity to provide insurance against
risk of loss of such export.
[(2) When certification must be made.--The investor
shall be required, in every practicable case, to so
certify before the insurance, reinsurance, guarantee,
or other financing is provided. In any case in which
such a certification is not made in advance, the
investor shall include in the certification the reasons
for the failure to make a certification in advance.
[(3) Exception.--Paragraph (1) does not apply with
respect to an investor who does not, because of the
nature of the investment, have a controlling interest
in fact in the project in question.
[(b) Reports by the United States Trade Representative.--The
United States Trade Representative shall review the actions of
the Corporation under subsection (a) and, after consultation
with representatives of United States insurance companies,
shall report to the Congress in the report required by section
181(b) of the Trade Act of 1974 with respect to such actions.
[(c) Definitions.--For purposes of this section--
[(1) the term ``United States insurance company''
includes--
[(A) an individual, partnership, corporation,
holding company, or other legal entity which is
authorized, or in the case of a holding
company, subsidiaries of which are authorized,
by a State to engage in the business of issuing
insurance contracts or reinsuring the risk
underwritten by insurance companies; and
[(B) foreign operations, branches, agencies,
subsidiaries, affiliates, or joint ventures of
any entity described in subparagraph (A);
[(2) United States insurance companies shall be
considered to have had a ``fair and open competitive
opportunity to provide insurance'' if they--
[(A) have received notice of the opportunity
to provide insurance; and
[(B) have been evaluated on a
nondiscriminatory basis; and
[(3) the term ``State'' includes the District of
Columbia and any commonwealth, territory, or possession
of the United States.]
* * * * * * *
TITLE XII--FAMINE PREVENTION AND FREEDOM FROM HUNGER
* * * * * * *
Chapter 8--International Narcotics Control
SEC. 481. POLICY, GENERAL AUTHORITIES, COORDINATION, FOREIGN POLICE
ACTIONS, DEFINITIONS, AND OTHER PROVISIONS.
(a) Policy and General Authorities.--
(1) Statements of policy.--(A) International
narcotics trafficking poses an unparalleled
transnational threat in today's world, and its
suppression is among the most important foreign policy
objectives of the United States.
(B) Under the Single Convention on Narcotic Drugs,
1961, and under the United Nations Convention Against
Illicit Traffic in Narcotic Drugs and Psychotropic
Substances, the parties are required to criminalize
certain drug-related activities, provide appropriately
severe penalties, and cooperate in the extradition of
accused offenders.
(C) International narcotics control programs should
include, as priority goals, the suppression of the
illicit manufacture of and trafficking in narcotic and
psychotropic drugs, money laundering, and precursor
chemical diversion, and the progressive elimination of
the illicit cultivation of the crops from which
narcotic and psychotropic drugs are derived.
(D) International criminal activities, particularly
international narcotics trafficking, money laundering,
and corruption, endanger political and economic
stability and democratic development, and assistance
for the prevention and suppression of international
criminal activities should be a priority for the United
States.
(E) The international community should provide
assistance, where appropriate, to those producer and
transit countries which require assistance in
discharging these primary obligations.
(F) The objective of the United States in dealing
with the problem of international money laundering is
to ensure that countries adopt comprehensive domestic
measures against money laundering and cooperate with
each other in narcotics money laundering
investigations, prosecutions, and related forfeiture
actions.
(G) Effective international cooperation is necessary
to control the illicit cultivation, production, and
smuggling of, trafficking in, and abuse of narcotic and
psychotropic drugs.
(2) In order to promote such cooperation, the President is
authorized to conclude agreements, including reciprocal
maritime agreements, with other countries to facilitate control
of the production, processing, transportation, and distribution
of narcotics analgesics, including opium and its derivatives,
other narcotic and psychotropic drugs, and other controlled
substances.
(3) In order to promote international cooperation in
combating international trafficking in illicit narcotics, it
shall be the policy of the United States to use its voice and
vote in multilateral development banks to promote the
development and implementation in the major illicit drug
producing countries of programs for the reduction and eventual
eradication of narcotic drugs and other controlled substances,
including appropriate assistance in conjunction with effective
programs of illicit crop eradication.
(4) Notwithstanding any other provision of law, the President
is authorized to furnish assistance to any country or
international organization, or such terms and conditions as he
may determine, for the control of narcotic and psychotropic
drugs and other controlled substances, or for other anticrime
purposes.
(b) Coordination of All United States Antinarcotics
Assistance to Foreign Countries.--
(1) Responsibility of secretary of state.--Consistent
with subtitle A of title I of the Anti-Drug Abuse Act
of 1988, the Secretary of State shall be responsible
for coordinating all assistance provided by the United
States Government to support international efforts to
combat illicit narcotics production or trafficking.
(2) Rule of construction.--Nothing contained in this
subsection or section 489(b) shall be construed to
limit or impair the authority or responsibility of any
other Federal agency with respect to law enforcement,
domestic security operations, or intelligence
activities as defined in Executive Order 12333.
(c) Participation in Foreign Police Actions.--
(1) Prohibition on effecting an arrest.--No officer
or employee of the United States may directly effect an
arrest in any foreign country as part of any foreign
police action with respect to narcotics control
efforts, notwithstanding any other provision of law.
(2) Participation in arrest actions.--Paragraph (1)
does not prohibit an officer or employee of the United
States, with the approval of the United States chief of
mission, from being present when foreign officers are
effecting an arrest or from assisting foreign officers
who are effecting an arrest.
(3) Exception for exigent, threatening
circumstances.--Paragraph (1) does not prohibit an
officer or employee from taking direct action to
protect life or safety if exigent circumstances arise
which are unanticipated and which pose an immediate
threat to United States officers or employees, officers
or employees of a foreign government, or members of the
public.
(4) Exception for maritime law enforcement.--With the
agreement of a foreign country, paragraph (1) does not
apply with respect to maritime law enforcement
operations in the territorial sea or archipelagic
waters of that country.
(5) Interrogations.--No officer or employee of the
United States may interrogate or be present during the
interrogation of any United States person arrested in
any foreign country with respect to narcotics control
efforts without the written consent of such person.
(6) Exception for status of forces arrangements.--
This subsection does not apply to the activities of the
United States Armed Forces in carrying out their
responsibilities under applicable Status of Forces
Arrangements.
(d) Use of Herbicides for Aerial Eradication.--
(1) Monitoring.--The President, with the assistance
of appropriate Federal agencies, shall monitor any use
under this chapter of a herbicide for aerial
eradication in order to determine the impact of such
use on the environment and on the health of
individuals.
(2) Annual reports.--In the annual report required by
section 489(a), the President shall report on the
impact on the environment and the health of individuals
of the use under this chapter of a herbicide for aerial
eradication.
(3) Report upon determination of harm to environment
or health.--If the President determines that any such
use is harmful to the environment or the health of
individuals, the President shall immediately report
that determination to the Committee on Foreign Affairs
of the House of Representatives and the Committee on
Foreign Relations of the Senate, together with such
recommendations as the President deems appropriate.
(e) Definitions.--For purposes of this chapter and other
provisions of this Act relating specifically to international
narcotics matters--
(1) the term ``legal and law enforcement measures''
means--
(A) the enactment and implementation of laws
and regulations or the implementation of
existing laws and regulations to provide for
the progressive control, reduction, and gradual
elimination of the illicit cultivation,
production, processing, transportation, and
distribution of narcotic drugs and other
controlled substances; and
(B) the effective organization, staffing,
equipping, funding, and activation of those
governmental authorities responsible for
narcotics control;
(2) the term ``major illicit drug producing country''
means a country in which--
(A) 1,000 hectares or more of illicit opium
poppy is cultivated or harvested during a year;
(B) 1,000 hectares or more of illicit coca is
cultivated or harvested during a year; or
(C) 5,000 hectares or more of illicit
cannabis is cultivated or harvested during a
year, unless the President determines that such
illicit cannabis production does not
significantly affect the United States;
(3) the term ``narcotic and psychotropic drugs and
other controlled substances'' has the same meaning as
is given by any applicable international narcotics
control agreement or domestic law of the country of
countries concerned;
(4) the term ``United States assistance'' means--
(A) any assistance under this Act [(including
programs under title IV of chapter 2, relating
to the Overseas Private Investment
Corporation)] (and any support under title II
of the Better Utilization of Investments
Leading to Development Act of 2018, relating to
the United States International Development
Finance Corporation), other than--
(i) assistance under this chapter,
(ii) any other narcotics-related
assistance under this part (including
chapter 4 of part II), but any such
assistance provided under this clause
shall be subject to the prior
notification procedures applicable to
reprogrammings pursuant to section 634A
of this Act,
(iii) disaster relief assistance,
including any assistance under chapter
9 of this part,
(iv) assistance which involves the
provision of food (including
monetization of food) or medicine, and
(v) assistance for refugees;
(B) sales, or financing on any terms, under
the Arms Export Control Act;
(C) the provision of agricultural
commodities, other than food, under the Food
for Peace Act; and
(D) financing under the Export-Import Bank
Act of 1945;
(5) the term ``major drug-transit country'' means a
country--
(A) that is a significant direct source of
illicit narcotic or psychotropic drugs or other
controlled substances significantly affecting
the United States; or
(B) through which are transported such drugs
or substances;;
(6) the term ``precursor chemical'' has the same
meaning as the term ``listed chemical'' has under
paragraph (33) of section 102 of the Controlled
Substances Act (21 U.S.C. 802(33));
(7) the term ``major money laundering country'' means
a country whose financial institutions engage in
currency transactions involving significant amounts of
proceeds from international narcotics trafficking; and
(8) the term ``appropriate congressional committees''
means the Committee on Foreign Affairs and the
Committee on Appropriations of the House of
Representatives and the Committee on Foreign Relations
and the Committee on Appropriations of the Senate.
* * * * * * *
CHAPTER 12--SUPPORT FOR THE ECONOMIC AND POLITICAL INDEPENDENCE OF THE
COUNTRIES OF THE SOUTH CAUCASUS AND CENTRAL ASIA
* * * * * * *
SEC. 499B. DEVELOPMENT OF INFRASTRUCTURE.
(a) Purpose of Programs.--The purposes of programs under this
section include--
(1) to develop the physical infrastructure necessary
for regional cooperation among the countries of the
South Caucasus and Central Asia; and
(2) to encourage closer economic relations and to
facilitate the removal of impediments to cross-border
commerce among those countries and the United States
and other developed nations.
(b) Authorization for Programs.--To carry out the purposes of
subsection (a), the following types of programs for the
countries of the South Caucasus and Central Asia may be used to
support the activities described in subsection (c):
(1) Activities by the Export-Import Bank to complete
the review process for eligibility for financing under
the Export-Import Bank Act of 1945.
(2) The provision of insurance, reinsurance,
financing, or other assistance by the [Overseas Private
Investment Corporation] United States International
Development Finance Corporation.
(3) Assistance under section 661 of this Act
(relating to the Trade and Development Agency).
(c) Activities Supported.--Activities that may be supported
by programs under subsection (b) include promoting actively the
participation of United States companies and investors in the
planning, financing, and construction of infrastructure for
communications, transportation, including air transportation,
and energy and trade including highways, railroads, port
facilities, shipping, banking, insurance, telecommunications
networks, and gas and oil pipelines.
* * * * * * *
----------
BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL ACT OF 1985
PART C--EMERGENCY POWERS TO ELIMINATE DEFICITS IN EXCESS OF MAXIMUM
DEFICIT AMOUNT
* * * * * * *
SEC. 255. EXEMPT PROGRAMS AND ACTIVITIES.
(a) Social Security Benefits and Tier I Railroad Retirement
Benefits.--Benefits payable under the old-age, survivors, and
disability insurance program established under title II of the
Social Security Act (42 U.S.C. 401 et seq.), and benefits
payable under sections 3 and 4 of the Railroad Retirement Act
of 1937 (45 U.S.C. 231 et seq.), shall be exempt from reduction
under any order issued under this part.
(b) Veterans Programs.--The following programs shall be
exempt from reduction under any order issued under this part:
All programs administered by the Department of
Veterans Affairs.
Special Benefits for Certain World War II Veterans
(28-0401-0-1-701).
(c) Net Interest.--No reduction of payments for net interest
(all of major functional category 900) shall be made under any
order issued under this part.
(d) Refundable Income Tax Credits.--Payments to individuals
made pursuant to provisions of the Internal Revenue Code of
1986 establishing refundable tax credits shall be exempt from
reduction under any order issued under this part.
(e) Non-defense Unobligated Balances.--Unobligated balances
of budget authority carried over from prior fiscal years,
except balances in the defense category, shall be exempt from
reduction under any order issued under this part.
(f) Optional Exemption of Military Personnel.--
(1) In general.--The President may, with respect to
any military personnel account, exempt that account
from sequestration or provide for a lower uniform
percentage reduction than would otherwise apply.
(2) Limitation.--The President may not use the
authority provided by paragraph (1) unless the
President notifies the Congress of the manner in which
such authority will be exercised on or before the date
specified in section 254(a) for the budget year.
(g) Other Programs and Activities.--
(1)(A) The following budget accounts and activities
shall be exempt from reduction under any order issued
under this part:
Activities resulting from private donations,
bequests, or voluntary contributions to the
Government.
Activities financed by voluntary payments to
the Government for goods or services to be
provided for such payments.
Administration of Territories, Northern
Mariana Islands Covenant grants (14-0412-0-1-
808).
Advances to the Unemployment Trust Fund and
Other Funds (16-0327-0-1-600).
Black Lung Disability Trust Fund Refinancing
(16-0329-0-1-601).
Bonneville Power Administration Fund and
borrowing authority established pursuant to
section 13 of Public Law 93-454 (1974), as
amended (89-4045-0-3-271).
Claims, Judgments, and Relief Acts (20-1895-
0-1-808).
Compact of Free Association (14-0415-0-1-
808).
Compensation of the President (11-0209-01-1-
802).
Comptroller of the Currency, Assessment Funds
(20-8413-0-8-373).
Continuing Fund, Southeastern Power
Administration (89-5653-0-2-271).
Continuing Fund, Southwestern Power
Administration (89-5649-0-2-271).
Dual Benefits Payments Account (60-0111-0-1-
601).
Emergency Fund, Western Area Power
Administration (89-5069-0-2-271).
Exchange Stabilization Fund (20-4444-0-3-
155).
Farm Credit Administration Operating Expenses
Fund (78-4131-0-3-351).
Farm Credit System Insurance Corporation,
Farm Credit Insurance Fund (78-4171-0-3-351).
Federal Deposit Insurance Corporation,
Deposit Insurance Fund (51-4596-0-4-373).
Federal Deposit Insurance Corporation, FSLIC
Resolution Fund (51-4065-0-3-373).
Federal Deposit Insurance Corporation,
Noninterest Bearing Transaction Account
Guarantee (51-4458-0-3-373).
Federal Deposit Insurance Corporation, Senior
Unsecured Debt Guarantee (51-4457-0-3-373).
Federal Home Loan Mortgage Corporation
(Freddie Mac).
Federal Housing Finance Agency,
Administrative Expenses (95-5532-0-2-371).
Federal National Mortgage Corporation (Fannie
Mae).
Federal Payment to the District of Columbia
Judicial Retirement and Survivors Annuity Fund
(20-1713-0-1-752).
Federal Payment to the District of Columbia
Pension Fund (20-1714-0-1-601).
Federal Payments to the Railroad Retirement
Accounts (60-0113-0-1-601).
Federal Reserve Bank Reimbursement Fund (20-
1884-0-1-803).
Financial Agent Services (20-1802-0-1-803).
Foreign Military Sales Trust Fund (11-8242-0-
7-155).
Hazardous Waste Management, Conservation
Reserve Program (12-4336-0-3-999).
Host Nation Support Fund for Relocation (97-
8337-0-7-051).
Internal Revenue Collections for Puerto Rico
(20-5737-0-2-806).
Intragovernmental funds, including those from
which the outlays are derived primarily from
resources paid in from other government
accounts, except to the extent such funds are
augmented by direct appropriations for the
fiscal year during which an order is in effect.
Medical Facilities Guarantee and Loan Fund
(75-9931-0-3-551).
National Credit Union Administration, Central
Liquidity Facility (25-4470-0-3-373).
National Credit Union Administration,
Corporate Credit Union Share Guarantee Program
(25-4476-0-3-376).
National Credit Union Administration, Credit
Union Homeowners Affordability Relief Program
(25-4473-0-3-371).
National Credit Union Administration, Credit
Union Share Insurance Fund (25-4468-0-3-373).
National Credit Union Administration, Credit
Union System Investment Program (25-4474-0-3-
376).
National Credit Union Administration,
Operating fund (25-4056-0-3-373).
National Credit Union Administration, Share
Insurance Fund Corporate Debt Guarantee Program
(25-4469-0-3-376).
National Credit Union Administration, U.S.
Central Federal Credit Union Capital Program
(25-4475-0-3-376).
Office of Thrift Supervision (20-4108-0-3-
373).
Panama Canal Commission Compensation Fund
(16-5155-0-2-602).
Payment of Vietnam and USS Pueblo prisoner-
of-war claims within the Salaries and Expenses,
Foreign Claims Settlement account (15-0100-0-1-
153).
Payment to Civil Service Retirement and
Disability Fund (24-0200-0-1-805).
Payment to Department of Defense Medicare-
Eligible Retiree Health Care Fund (97-0850-0-1-
054).
Payment to Judiciary Trust Funds (10-0941-0-
1-752).
Payment to Military Retirement Fund (97-0040-
0-1-054).
Payment to the Foreign Service Retirement and
Disability Fund (19-0540-0-1-153).
Payments to Copyright Owners (03-5175-0-2-
376).
Payments to Health Care Trust Funds (75-0580-
0-1-571).
Payment to Radiation Exposure Compensation
Trust Fund (15-0333-0-1-054).
Payments to Social Security Trust Funds (28-
0404-0-1-651).
Payments to the United States Territories,
Fiscal Assistance (14-0418-0-1-806).
Payments to trust funds from excise taxes or
other receipts properly creditable to such
trust funds.
Payments to widows and heirs of deceased
Members of Congress (00-0215-0-1-801).
Postal Service Fund (18-4020-0-3-372).
Radiation Exposure Compensation Trust Fund
(15-8116-0-1-054).
Reimbursement to Federal Reserve Banks (20-
0562-0-1-803).
Salaries of Article III judges.
Soldiers and Airmen's Home, payment of claims
(84-8930-0-7-705).
Tennessee Valley Authority Fund, except
nonpower programs and activities (64-4110-0-3-
999).
Tribal and Indian trust accounts within the
Department of the Interior which fund prior
legal obligations of the Government or which
are established pursuant to Acts of Congress
regarding Federal management of tribal real
property or other fiduciary responsibilities,
including but not limited to Tribal Special
Fund (14-5265-0-2-452), Tribal Trust Fund (14-
8030-0-7-452), White Earth Settlement (14-2204-
0-1-452), and Indian Water Rights and Habitat
Acquisition (14-5505-0-2-303).
United Mine Workers of America 1992 Benefit
Plan (95-8260-0-7-551).
United Mine Workers of America 1993 Benefit
Plan (95-8535-0-7-551).
United Mine Workers of America Combined
Benefit Fund (95-8295-0-7-551).
United States Enrichment Corporation Fund
(95-4054-0-3-271).
Universal Service Fund (27-5183-0-2-376).
Vaccine Injury Compensation (75-0320-0-1-
551).
Vaccine Injury Compensation Program Trust
Fund (20-8175-0-7-551).
(B) The following Federal retirement and disability
accounts and activities shall be exempt from reduction
under any order issued under this part:
Black Lung Disability Trust Fund (20-8144-0-
7-601).
Central Intelligence Agency Retirement and
Disability System Fund (56-3400-0-1-054).
Civil Service Retirement and Disability Fund
(24-8135-0-7-602).
Comptrollers general retirement system (05-
0107-0-1-801).
Contributions to U.S. Park Police annuity
benefits, Other Permanent Appropriations (14-
9924-0-2-303).
Court of Appeals for Veterans Claims
Retirement Fund (95-8290-0-7-705).
Department of Defense Medicare-Eligible
Retiree Health Care Fund (97-5472-0-2-551).
District of Columbia Federal Pension Fund
(20-5511-0-2-601).
District of Columbia Judicial Retirement and
Survivors Annuity Fund (20-8212-0-7-602).
Energy Employees Occupational Illness
Compensation Fund (16-1523-0-1-053).
Foreign National Employees Separation Pay
(97-8165-0-7-051).
Foreign Service National Defined
Contributions Retirement Fund (19-5497-0-2-
602).
Foreign Service National Separation Liability
Trust Fund (19-8340-0-7-602).
Foreign Service Retirement and Disability
Fund (19-8186-0-7-602).
Government Payment for Annuitants, Employees
Health Benefits (24-0206-0-1-551).
Government Payment for Annuitants, Employee
Life Insurance (24-0500-0-1-602).
Judicial Officers' Retirement Fund (10-8122-
0-7-602).
Judicial Survivors' Annuities Fund (10-8110-
0-7-602).
Military Retirement Fund (97-8097-0-7-602).
National Railroad Retirement Investment Trust
(60-8118-0-7-601).
National Oceanic and Atmospheric
Administration retirement (13-1450-0-1-306).
Pensions for former Presidents (47-0105-0-1-
802).
Postal Service Retiree Health Benefits Fund
(24-5391-0-2-551).
Public Safety Officer Benefits (15-0403-0-1-
754).
Rail Industry Pension Fund (60-8011-0-7-601).
Retired Pay, Coast Guard (70-0602-0-1-403).
Retirement Pay and Medical Benefits for
Commissioned Officers, Public Health Service
(75-0379-0-1-551).
September 11th Victim Compensation Fund (15-
0340-0-1-754).
Special Benefits for Disabled Coal Miners
(16-0169-0-1-601).
Special Benefits, Federal Employees'
Compensation Act (16-1521-0-1-600).
Special Workers Compensation Expenses (16-
9971-0-7-601).
Tax Court Judges Survivors Annuity Fund (23-
8115-0-7-602).
United States Court of Federal Claims Judges'
Retirement Fund (10-8124-0-7-602).
United States Secret Service, DC Annuity (70-
0400-0-1-751).
Victims Compensation Fund established under
section 410 of the Air Transportation Safety
and System Stabilization Act (49 U.S.C. 40101
note).
United States Victims of State Sponsored
Terrorism Fund.
Voluntary Separation Incentive Fund (97-8335-
0-7-051).
World Trade Center Health Program Fund (75-
0946-0-1-551).
(2) Prior legal obligations of the Government in the
following budget accounts and activities shall be
exempt from any order issued under this part:
Biomass Energy Development (20-0114-0-1-271).
Check Forgery Insurance Fund (20-4109-0-3-
803).
Credit liquidating accounts.
Credit reestimates.
Employees Life Insurance Fund (24-8424-0-8-
602).
Federal Aviation Insurance Revolving Fund
(69-4120-0-3-402).
Federal Crop Insurance Corporation Fund (12-
4085-0-3-351).
Federal Emergency Management Agency, National
Flood Insurance Fund (58-4236-0-3-453).
Geothermal resources development fund (89-
0206-0-1-271).
Low-Rent Public Housing--Loans and Other
Expenses (86-4098-0-3-604).
Maritime Administration, War Risk Insurance
Revolving Fund (69-4302-0-3-403).
Natural Resource Damage Assessment Fund (14-
1618-0-1-302).
[Overseas Private Investment Corporation,
Noncredit Account (71-4184-0-3-151).] United
States International Development Finance
Corporation.
Pension Benefit Guaranty Corporation Fund
(16-4204-0-3-601).
San Joaquin Restoration Fund (14-5537-0-2-
301).
Servicemembers' Group Life Insurance Fund
(36-4009-0-3-701).
Terrorism Insurance Program (20-0123-0-1-
376).
(h) Low-income Programs.--The following programs shall be
exempt from reduction under any order issued under this part:
Academic Competitiveness/Smart Grant Program (91-
0205-0-1-502).
Child Care Entitlement to States (75-1550-0-1-609).
Child Enrollment Contingency Fund (75-5551-0-2-551).
Child Nutrition Programs (with the exception of
special milk programs) (12-3539-0-1-605).
Children's Health Insurance Fund (75-0515-0-1-551).
Commodity Supplemental Food Program (12-3507-0-1-
605).
Contingency Fund (75-1522-0-1-609).
Family Support Programs (75-1501-0-1-609).
Federal Pell Grants under section 401 of title IV of
the Higher Education Act.
Grants to States for Medicaid (75-0512-0-1-551).
Payments for Foster Care and Permanency (75-1545-0-1-
609).
Supplemental Nutrition Assistance Program (12-3505-0-
1-605).
Supplemental Security Income Program (28-0406-0-1-
609).
Temporary Assistance for Needy Families (75-1552-0-1-
609).
(i) Economic Recovery Programs.--The following programs shall
be exempt from reduction under any order issued under this
part:
GSE Preferred Stock Purchase Agreements (20-0125-0-1-
371).
Office of Financial Stability (20-0128-0-1-376).
Special Inspector General for the Troubled Asset
Relief Program (20-0133-0-1-376).
(j) Split Treatment Programs.--Each of the following programs
shall be exempt from any order under this part to the extent
that the budgetary resources of such programs are subject to
obligation limitations in appropriations bills:
Federal-Aid Highways (69-8083-0-7-401).
Highway Traffic Safety Grants (69-8020-0-7-401).
Operations and Research NHTSA and National Driver Register
(69-8016-0-7-401).
Motor Carrier Safety Operations and Programs (69-8159-0-7-
401).
Motor Carrier Safety Grants (69-8158-0-7-401).
Formula and Bus Grants (69-8350-0-7-401).
Grants-In-Aid for Airports (69-8106-0-7-402).
(k) Identification of Programs.--For purposes of subsections
(b), (g), and (h), each account is identified by the designated
budget account identification code number set forth in the
Budget of the United States Government 2010-Appendix, and an
activity within an account is designated by the name of the
activity and the identification code number of the account.
* * * * * * *
----------
SMALL BUSINESS ACT
* * * * * * *
SEC. 22. OFFICE OF INTERNATIONAL TRADE.
(a) Establishment.--
(1) Office.--There is established within the
Administration an Office of International Trade which
shall implement the programs pursuant to this section
for the primary purposes of increasing--
(A) the number of small business concerns
that export; and
(B) the volume of exports by small business
concerns.
(2) Associate administrator.--The head of the Office
shall be the Associate Administrator for International
Trade, who shall be responsible to the Administrator.
(b) Trade Distribution Network.--The Associate Administrator,
working in close cooperation with the Secretary of Commerce,
the United States Trade Representative, the Secretary of
Agriculture, the Secretary of State, the President of the
Export-Import Bank of the United States, [the President of the
Overseas Private Investment Corporation, Director] the Board of
Directors of the United States International Development
Finance Corporation, the Director of the United States Trade
and Development Agency, and other relevant Federal agencies,
small business development centers engaged in export promotion
efforts, Export Assistance Centers, regional and district
offices of the Administration, the small business community,
and relevant State and local export promotion programs, shall--
(1) maintain a distribution network, using regional
and district offices of the Administration, the small
business development center network, networks of
women's business centers, the Service Corps of Retired
Executives authorized by section 8(b)(1), and Export
Assistance Centers, for programs relating to--
(A) trade promotion;
(B) trade finance;
(C) trade adjustment assistance;
(D) trade remedy assistance; and
(E) trade data collection;
(2) aggressively market the programs described in
paragraph (1) and disseminate information, including
computerized marketing data, to small business concerns
on exporting trends, market-specific growth, industry
trends, and international prospects for exports;
(3) promote export assistance programs through the
district and regional offices of the Administration,
the small business development center network, Export
Assistance Centers, the network of women's business
centers, chapters of the Service Corps of Retired
Executives, State and local export promotion programs,
and partners in the private sector; and
(4) give preference in hiring or approving the
transfer of any employee into the Office or to a
position described in subsection (c)(9) to otherwise
qualified applicants who are fluent in a language in
addition to English, to--
(A) accompany small business concerns on
foreign trade missions; and
(B) translate documents, interpret
conversations, and facilitate multilingual
transactions, including by providing referral
lists for translation services, if required.
(c) Promotion of Sales Opportunities.--The Associate
Administrator shall promote sales opportunities for small
business goods and services abroad. To accomplish this
objective the office shall--
(1) establish annual goals for the Office relating
to--
(A) enhancing the exporting capability of
small business concerns and small
manufacturers;
(B) facilitating technology transfers;
(C) enhancing programs and services to assist
small business concerns and small manufacturers
to compete effectively and efficiently in
foreign markets;
(D) increasing the ability of small business
concerns to access capital; and
(E) disseminating information concerning
Federal, State, and private programs and
initiatives;
(2) in cooperation with the Department of Commerce,
other relevant agencies, regional and local
Administration offices, the Small Business Development
Center network, and State programs, develop a mechanism
for--
(A) identifying subsectors of the small
business community with strong export
potential;
(B) identifying areas of demand in foreign
markets;
(C) prescreening foreign buyers for
commercial and credit purposes; and
(D) assisting in increasing international
marketing by disseminating relevant information
regarding market leads, linking potential
sellers and buyers, and catalyzing the
formation of joint ventures, where appropriate;
(3) in cooperation with the Department of Commerce,
actively assist small business concerns in forming and
using export trading companies, export management
companies and research and development pools authorized
under section 9 of this Act;
(4) work in conjunction with other Federal agencies,
regional and district offices of the Administration,
the small business development center network, and the
private sector to identify and publicize translation
services, including those available through colleges
and universities participating in the small business
development center program;
(5) work closely with the Department of Commerce and
other relevant Federal agencies to--
(A) collect, analyze and periodically update
relevant data regarding the small business
share of United States exports and the nature
of State exports (including the production of
Gross State Product figures) and disseminate
that data to the public and to Congress;
(B) make recommendations to the Secretary of
Commerce and to Congress regarding revision of
the North American Industry Classification
System codes to encompass industries currently
overlooked and to create North American
Industry Classification System codes for export
trading companies and export management
companies;
(C) improve the utility and accessibility of
existing export promotion programs for small
business concerns; and
(D) increase the accessibility of the Export
Trading Company contact facilitation service;
(6) make available to the small business community
information regarding conferences on exporting and
international trade sponsored by the public and private
sector;
(7) provide small business concerns with access to up
to date and complete export information by--
(A) making available, at the regional and
district offices of the Administration through
cooperation with the Department of Commerce,
export information, including, but not limited
to, the worldwide information and trade system
and world trade data reports;
(B) maintaining a list of financial
institutions that finance export operations;
(C) maintaining a directory of all Federal,
regional, State and private sector programs
that provide export information and assistance
to small business concerns; and
(D) preparing and publishing such reports as
it determines to be necessary concerning market
conditions, sources of financing, export
promotion programs, and other information
pertaining to the needs of small business
export firms so as to insure that the maximum
information is made available to small business
concerns in a readily usable form;
(8) encourage through cooperation with the Department
of Commerce, greater small business participation in
trade fairs, shows, missions, and other domestic and
overseas export development activities of the
Department of Commerce;
(9) facilitate decentralized delivery of export
information and assistance to small business concerns
by assigning primary responsibility for export
development to one individual in each district office
and providing each Administration regional office with
a full-time export development specialist, who shall--
(A) assist small business concerns in
obtaining export information and assistance
from other Federal departments and agencies;
(B) maintain a directory of all programs
which provide export information and assistance
to small business concerns in the region;
(C) encourage financial institutions to
develop and expand programs for export
financing;
(D) provide advice to personnel of the
Administration involved in making loans, loan
guarantees, and extensions and revolving lines
of credit, and providing other forms of
assistance to small business concerns engaged
in exports;
(E) within one hundred and eighty days of
their appointment, participate in training
programs designed by the Administrator, in
conjunction with the Department of Commerce and
other Federal departments and agencies, to
study export programs and to examine the needs
of small business concerns for export
information and assistance;
(F) participate, jointly with employees of
the Office, in an annual training program that
focuses on current small business needs for
exporting; and
(G) develop and conduct training programs for
exporters and lenders, in cooperation with the
Export Assistance Centers, the Department of
Commerce, the Department of Agriculture, small
business development centers, women's business
centers, the Export-Import Bank of the United
States, the [Overseas Private Investment
Corporation] United States International
Development Finance Corporation, and other
relevant Federal agencies;
(10) make available on the website of the
Administration the name and contact information of each
individual described in paragraph (9);
(11) carry out a nationwide marketing effort using
technology, online resources, training, and other
strategies to promote exporting as a business
development opportunity for small business concerns;
(12) disseminate information to the small business
community through regional and district offices of the
Administration, the small business development center
network, Export Assistance Centers, the network of
women's business centers, chapters of the Service Corps
of Retired Executives authorized by section 8(b)(1),
State and local export promotion programs, and partners
in the private sector regarding exporting trends,
market-specific growth, industry trends, and prospects
for exporting; and
(13) establish and carry out training programs for
the staff of the regional and district offices of the
Administration and resource partners of the
Administration on export promotion and providing
assistance relating to exports.
(d) Export Financing Programs.--
(1) In general.--The Associate Administrator shall
work in cooperation with the Export-Import Bank of the
United States, the Department of Commerce, other
relevant Federal agencies, and the States to develop a
program through which export specialists in the
regional offices of the Administration, regional and
local loan officers, and Small Business Development
Center personnel can facilitate the access of small
businesses to relevant export financing programs of the
Export-Import Bank of the United States and to export
and pre-export financing programs available from the
Administration and the private sector.
(2) Trade finance specialist.--To accomplish the goal
established under paragraph (1), the Associate
Administrator shall--
(A) designate at least 1 individual within
the Administration as a trade finance
specialist to oversee international loan
programs and assist Administration employees
with trade finance issues; and
(B) work in cooperation with the Export-
Import Bank and the small business community,
including small business trade associations,
to--
(i) aggressively market existing
Administration export financing and
pre-export financing programs;
(ii) identify financing available
under various Export-Import Bank
programs, and aggressively market those
programs to small businesses;
(iii) assist in the development of
financial intermediaries and facilitate
the access of those intermediaries to
existing financing programs;
(iv) promote greater participation by
private financial institutions,
particularly those institutions already
participating in loan programs under
this Act, in export finance; and
(v) provide for the participation of
appropriate Administration personnel in
training programs conducted by the
Export-Import Bank.
(e) Trade Remedies.--The Associate Administrator shall--
(1) work in cooperation with other Federal agencies
and the private sector to counsel small businesses with
respect to initiating and participating in any
proceedings relating to the administration of the
United States trade laws; and
(2) work with the Department of Commerce, the Office
of the United States Trade Representative, and the
International Trade Commission to increase access to
trade remedy proceedings for small businesses.
(f) Reporting Requirement.--The Associate Administrator shall
submit an annual report to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives that contains--
(1) a description of the progress of the Office in
implementing the requirements of this section;
(2) a detailed account of the results of export
growth activities of the Administration, including the
activities of each district and regional office of the
Administration, based on the performance measures
described in subsection (i);
(3) an estimate of the total number of jobs created
or retained as a result of export assistance provided
by the Administration and resource partners of the
Administration;
(4) for any travel by the staff of the Office, the
destination of such travel and the benefits to the
Administration and to small business concerns resulting
from such travel; and
(5) a description of the participation by the Office
in trade negotiations.
(g) Studies.--The Associate Administrator, in cooperation,
where appropriate, with the Division of Economic Research of
the Office of Advocacy, and with other Federal agencies, shall
undertake studies regarding the following issues and shall
report to the Committees on Small Business of the House of
Representatives and the Senate, and to other relevant
Committees of the House and Senate within 6 months after the
date of enactment of the Small Business International Trade and
Competitiveness Act with specific recommendations on--
(1) the viability and cost of establishing an annual,
competitive small business export incentive program
similar to the Small Business Innovation Research
program and alternative methods of structuring such a
program;
(2) methods of streamlining trade remedy proceedings
to increase access for, and reduce expenses incurred
by, smaller firms;
(3) methods of improving the current small business
foreign sales corporation tax incentives and providing
small businesses with greater benefits from this
initiative;
(4) methods of identifying potential export markets
for United States small businesses; maintaining and
disseminating current foreign market data; and devising
a comprehensive export marketing strategy for United
States small business goods and services, and shall
include data on the volume and dollar amount of goods
and services, identified by type, imported by United
States trading partners over the past 10 years; and
(5) the results of a survey of major United States
trading partners to identify the domestic policies,
programs and incentives, and the private sector
initiatives, which exist to encourage the formation and
growth of small business.
(h) Discharge of International Trade Responsibilities of
Administration.--The Administrator shall ensure that--
(1) the responsibilities of the Administration
regarding international trade are carried out by the
Associate Administrator;
(2) the Associate Administrator has sufficient
resources to carry out such responsibilities; and
(3) the Associate Administrator has direct
supervision and control over--
(A) the staff of the Office; and
(B) any employee of the Administration whose
principal duty station is an Export Assistance
Center, or any successor entity.
(i) Export and Trade Counseling.--
(1) Definition.--In this subsection--
(A) the term ``lead small business
development center'' means a small business
development center that has received a grant
from the Administration; and
(B) the term ``lead women's business center''
means a women's business center that has
received a grant from the Administration.
(2) Certification program.--The Administrator shall
establish an export and trade counseling certification
program to certify employees of lead small business
development centers and lead women's business centers
in providing export assistance to small business
concerns.
(3) Number of certified employees.--The Administrator
shall ensure that the number of employees of each lead
small business development center who are certified in
providing export assistance is not less than the lesser
of--
(A) 5; or
(B) 10 percent of the total number of
employees of the lead small business
development center.
(4) Reimbursement for certification.--
(A) In general.--Subject to the availability
of appropriations, the Administrator shall
reimburse a lead small business development
center or a lead women's business center for
costs relating to the certification of an
employee of the lead small business center or
lead women's business center in providing
export assistance under the program established
under paragraph (2).
(B) Limitation.--The total amount reimbursed
by the Administrator under subparagraph (A) may
not exceed $350,000 in any fiscal year.
(j) Performance Measures.--
(1) In general.--The Associate Administrator shall
develop performance measures for the Administration to
support export growth goals for the activities of the
Office under this section that include--
(A) the number of small business concerns
that--
(i) receive assistance from the
Administration;
(ii) had not exported goods or
services before receiving the
assistance described in clause (i); and
(iii) export goods or services;
(B) the number of small business concerns
receiving assistance from the Administration
that export goods or services to a market
outside the United States into which the small
business concern did not export before
receiving the assistance;
(C) export revenues by small business
concerns assisted by programs of the
Administration;
(D) the number of small business concerns
referred to an Export Assistance Center or a
small business development center by the staff
of the Office;
(E) the number of small business concerns
referred to the Administration by an Export
Assistance Center or a small business
development center; and
(F) the number of small business concerns
referred to the Department of Commerce, the
Department of Agriculture, the Department of
State, the Export-Import Bank of the United
States, the [Overseas Private Investment
Corporation] United States International
Development Finance Corporation, or the United
States Trade and Development Agency by the
staff of the Office, an Export Assistance
Center, or a small business development center.
(2) Joint performance measures.--The Associate
Administrator shall develop joint performance measures
for the district offices of the Administration and the
Export Assistance Centers that include the number of
export loans made under--
(A) section 7(a)(16);
(B) the Export Working Capital Program
established under section 7(a)(14);
(C) the Preferred Lenders Program, as defined
in section 7(a)(2)(C)(ii); and
(D) the export express program established
under section 7(a)(34).
(3) Consistency of tracking.--The Associate
Administrator, in coordination with the departments and
agencies that are represented on the Trade Promotion
Coordinating Committee established under section 2312
of the Export Enhancement Act of 1988 (15 U.S.C. 4727)
and the small business development center network,
shall develop a system to track exports by small
business concerns, including information relating to
the performance measures developed under paragraph (1),
that is consistent with systems used by the departments
and agencies and the network.
(k) Export Assistance Centers.--
(1) Export finance specialists.--
(A) Minimum number of export finance
specialists.--On and after the date that is 90
days after the date of enactment of this
subsection, the Administrator, in coordination
with the Secretary of Commerce, shall ensure
that the number of export finance specialists
is not less than the number of such employees
so assigned on January 1, 2003.
(B) Export finance specialists assigned to
each region of the administration.--On and
after the date that is 2 years after the date
of enactment of this subsection, the
Administrator, in coordination with the
Secretary of Commerce, shall ensure that there
are not fewer than 3 export finance specialists
in each region of the Administration.
(2) Placement of export finance specialists.--
(A) Priority.--The Administrator shall give
priority, to the maximum extent practicable, to
placing employees of the Administration at any
Export Assistance Center that--
(i) had an Administration employee
assigned to the Export Assistance
Center before January 2003; and
(ii) has not had an Administration
employee assigned to the Export
Assistance Center during the period
beginning January 2003, and ending on
the date of enactment of this
subsection, either through retirement
or reassignment.
(B) Needs of exporters.--The Administrator
shall, to the maximum extent practicable,
strategically assign Administration employees
to Export Assistance Centers, based on the
needs of exporters.
(C) Rule of construction.--Nothing in this
subsection may be construed to require the
Administrator to reassign or remove an export
finance specialist who is assigned to an Export
Assistance Center on the date of enactment of
this subsection.
(3) Goals.--The Associate Administrator shall work
with the Department of Commerce, the Export-Import Bank
of the United States, and the [Overseas Private
Investment Corporation] United States International
Development Finance Corporation to establish shared
annual goals for the Export Assistance Centers.
(4) Oversight.--The Associate Administrator shall
designate an individual within the Administration to
oversee all activities conducted by Administration
employees assigned to Export Assistance Centers.
(l) State Trade Expansion Program.--
(1) Definitions.--In this subsection--
(A) the term ``eligible small business
concern'' means a business concern that--
(i) is organized or incorporated in
the United States;
(ii) is operating in the United
States;
(iii) meets--
(I) the applicable industry-
based small business size
standard established under
section 3; or
(II) the alternate size
standard applicable to the
program under section 7(a) of
this Act and the loan programs
under title V of the Small
Business Investment Act of 1958
(15 U.S.C. 695 et seq.);
(iv) has been in business for not
less than 1 year, as of the date on
which assistance using a grant under
this subsection commences; and
(v) has access to sufficient
resources to bear the costs associated
with trade, including the costs of
packing, shipping, freight forwarding,
and customs brokers;
(B) the term ``program'' means the State
Trade Expansion Program established under
paragraph (2);
(C) the term ``rural small business concern''
means an eligible small business concern
located in a rural area, as that term is
defined in section 1393(a)(2) of the Internal
Revenue Code of 1986;
(D) the term ``socially and economically
disadvantaged small business concern'' has the
meaning given that term in section 8(a)(4)(A)
of the Small Business Act (15 U.S.C.
637(a)(4)(A)); and
(E) the term ``State'' means each of the
several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin
Islands, Guam, the Commonwealth of the Northern
Mariana Islands, and American Samoa.
(2) Establishment of program.--The Associate
Administrator shall establish a trade expansion
program, to be known as the ``State Trade Expansion
Program'', to make grants to States to carry out
programs that assist eligible small business concerns
in--
(A) participation in foreign trade missions;
(B) a subscription to services provided by
the Department of Commerce;
(C) the payment of website fees;
(D) the design of marketing media;
(E) a trade show exhibition;
(F) participation in training workshops;
(G) a reverse trade mission;
(H) procurement of consultancy services
(after consultation with the Department of
Commerce to avoid duplication); or
(I) any other initiative determined
appropriate by the Associate Administrator.
(3) Grants.--
(A) Joint review.--In carrying out the
program, the Associate Administrator may make a
grant to a State to increase the number of
eligible small business concerns in the State
exploring significant new trade opportunities.
(B) Considerations.--In making grants under
this subsection, the Associate Administrator
may give priority to an application by a State
that proposes a program that--
(i) focuses on eligible small
business concerns as part of a trade
expansion program;
(ii) demonstrates intent to promote
trade expansion by--
(I) socially and economically
disadvantaged small business
concerns;
(II) small business concerns
owned or controlled by women;
and
(III) rural small business
concerns;
(iii) promotes trade facilitation
from a State that is not 1 of the 10
States with the highest percentage of
eligible small business concerns that
are engaged in international trade,
based upon the most recent data from
the Department of Commerce; and
(iv) includes--
(I) activities which have
resulted in the highest return
on investment based on the most
recent year; and
(II) the adoption of shared
best practices included in the
annual report of the
Administration.
(C) Limitations.--
(i) Single application.--A State may
not submit more than 1 application for
a grant under the program in any 1
fiscal year.
(ii) Proportion of amounts.--The
total value of grants made under the
program during a fiscal year to the 10
States with the highest percentage of
eligible small business concerns, based
upon the most recent data available
from the Department of Commerce, shall
be not more than 40 percent of the
amounts appropriated for the program
for that fiscal year.
(iii) Duration.--The Associate
Administrator shall award a grant under
this program for a period of not more
than 2 years.
(D) Application.--
(i) In general.--A State desiring a
grant under the program shall submit an
application at such time, in such
manner, and accompanied by such
information as the Associate
Administrator may establish.
(ii) Consultation to reduce
duplication.--A State desiring a grant
under the program shall--
(I) before submitting an
application under clause (i),
consult with applicable trade
agencies of the Federal
Government on the scope and
mission of the activities the
State proposes to carry out
using the grant, to ensure
proper coordination and reduce
duplication in services; and
(II) document the
consultation conducted under
subclause (I) in the
application submitted under
clause (i).
(4) Competitive basis.--The Associate Administrator
shall award grants under the program on a competitive
basis.
(5) Federal share.--The Federal share of the cost of
a trade expansion program carried out using a grant
under the program shall be--
(A) for a State that has a high trade volume,
as determined by the Associate Administrator,
not more than 65 percent; and
(B) for a State that does not have a high
trade volume, as determined by the Associate
Administrator, not more than 75 percent.
(6) Non-federal share.--The non-Federal share of the
cost of a trade expansion program carried out using a
grant under the program shall be comprised of not less
than 50 percent cash and not more than 50 percent of
indirect costs and in-kind contributions, except that
no such costs or contributions may be derived from
funds from any other Federal program.
(7) Reports.--
(A) Initial report.--Not later than 120 days
after the date of enactment of this subsection,
the Associate Administrator shall submit to the
Committee on Small Business and
Entrepreneurship of the Senate and the
Committee on Small Business of the House of
Representatives a report, which shall include--
(i) a description of the structure of
and procedures for the program;
(ii) a management plan for the
program; and
(iii) a description of the merit-
based review process to be used in the
program.
(B) Annual reports.--
(i) In general.--The Associate
Administrator shall publish on the
website of the Administration an annual
report regarding the program, which
shall include--
(I) the number and amount of
grants made under the program
during the preceding year;
(II) a list of the States
receiving a grant under the
program during the preceding
year, including the activities
being performed with each
grant;
(III) the effect of each
grant on the eligible small
business concerns in the State
receiving the grant;
(IV) the total return on
investment for each State; and
(V) a description of best
practices by States that showed
high returns on investment and
significant progress in helping
more eligible small business
concerns.
(ii) Notice to congress.--On the date
on which the Associate Administrator
publishes a report under clause (i),
the Associate Administrator shall
notify the Committee on Small Business
and Entrepreneurship of the Senate and
the Committee on Small Business of the
House of Representatives that the
report has been published.
(8) Reviews by inspector general.--
(A) In general.--The Inspector General of the
Administration shall conduct a review of--
(i) the extent to which recipients of
grants under the program are measuring
the performance of the activities being
conducted and the results of the
measurements; and
(ii) the overall management and
effectiveness of the program.
(B) Reports.--
(i) Pilot program.--Not later than 6
months after the date of enactment of
this subsection, the Inspector General
of the Administration shall submit to
the Committee on Small Business and
Entrepreneurship of the Senate and the
Committee on Small Business of the
House of Representatives a report
regarding the use of amounts made
available under the State Trade and
Export Promotion Grant Program under
section 1207 of the Small Business Jobs
Act of 2010 (15 U.S.C. 649b note).
(ii) New step program.--Not later
than 18 months after the date on which
the first grant is awarded under this
subsection, the Inspector General of
the Administration shall submit to the
Committee on Small Business and
Entrepreneurship of the Senate and the
Committee on Small Business of the
House of Representatives a report
regarding the review conducted under
subparagraph (A).
(9) Authorization of appropriations.--There is
authorized to be appropriated to carry out the program
$30,000,000 for each of fiscal years 2016 through 2020.
(m) Definitions.--In this section--
(1) the term ``Associate Administrator'' means the
Associate Administrator for International Trade
described in subsection (a)(2);
(2) the term ``Export Assistance Center'' means a
one-stop shop for United States exporters established
by the United States and Foreign Commercial Service of
the Department of Commerce pursuant to section
2301(b)(8) of the Omnibus Trade and Competitiveness Act
of 1988 (15 U.S.C. 4721(b)(8));
(3) the term ``export finance specialist'' means a
full-time equivalent employee of the Office assigned to
an Export Assistance Center to carry out the duties
described in subsection (e); and
(4) the term ``Office'' means the Office of
International Trade established under subsection
(a)(1).
* * * * * * *
----------
EXPORT ENHANCEMENT ACT OF 1988
TITLE II--EXPORT ENHANCEMENT
SEC. 2001. SHORT TITLE.
This title may be referred to as the ``Export Enhancement Act
of 1988''.
* * * * * * *
Subtitle C--Export Promotion
* * * * * * *
SEC. 2301. UNITED STATES AND FOREIGN COMMERCIAL SERVICE.
(a) Establishment.--
(1) In general.--The Secretary of Commerce shall
establish, within the International Trade
Administration, the United States and Foreign
Commercial Service. The Secretary shall, to the
greatest extent practicable, transfer to the Commercial
Service the functions and personnel of the United
States and Foreign Commercial Services.
(2) Assistants Secretary of commerce and director
general; other personnel.--The head of the Commercial
Service shall be the Assistant Secretary of Commerce
and Director General of the Commercial Service, who
shall be appointed by the President, by and with the
advice and consent of the Senate. The Assistant
Secretary of Commerce and Director General of the
Commercial Service may appoint Commercial Service
Officers and such other personnel as may be necessary
to carry out the activities of the Commercial Service.
(3) Coordination with foreign policy objectives.--The
Secretary shall take the necessary steps to ensure that
the activities of the Commercial Service are carried
out in a manner consistent with United States foreign
policy objectives, and the Secretary shall consult
regularly with the Secretary of State in order to
comply with this paragraph.
(4) Authority of chief of mission.--All activities of
the Commercial Service shall be subject to section 207
of the Foreign Service Act of 1980 (22 U.S.C. 3927).
(b) Statement of Purpose.--The Commercial Service shall place
primary emphasis on the promotion of exports of goods and
services from the United States, particularly by small
businesses and medium-sized businesses, and on the protection
of United States business interests abroad by carrying out
activities such as--
(1) identifying United States businesses with the
potential to export goods and services and providing
such businesses with advice and information on
establishing export businesses;
(2) providing United States exporters with
information on economic conditions, market
opportunities, the status of the intellectual property
system in such country, and the legal and regulatory
environment within foreign countries;
(3) providing United States exporters with
information and advice on the necessary adaptation of
product design and marketing strategy to meet the
differing cultural and technical requirements of
foreign countries;
(4) providing United States exporters with actual
leads and an introduction to contacts within foreign
countries;
(5) assisting United States exporters in locating
reliable sources of business services in foreign
countries;
(6) assisting United States exporters in their
dealings with foreign governments and enterprises owned
by foreign governments;
(7) assisting the coordination of the efforts of
State and local agencies and private organizations
which seek to promote United States business interests
abroad so as to maximize their effectiveness and
minimize the duplication of efforts;
(8) utilizing district and foreign offices as one-
stop shops for United States exporters by providing
exporters with information on all export promotion and
export finance activities of the Federal Government,
assisting exporters in identifying which Federal
programs may be of greatest assistance, and assisting
exporters in making contact with the Federal programs
identified; and
(9) providing United States exporters and export
finance institutions with information on all financing
and insurance programs of the Export-Import Bank of the
United States, the [Overseas Private Investment
Corporation] United States International Development
Finance Corporation, the Trade and Development Program,
and the Small Business Administration, including
providing assistance in completing applications for
such programs and working with exporters and export
finance institutions to address any deficiencies in
such applications that have been submitted.
(c) Offices.--
(1) In general.--The Commercial Service shall conduct
its activities at a headquarters office, district
offices located in major United States cities, and
foreign offices located in major foreign cities.
(2) Headquarters.--The headquarters of the Commercial
Service shall provide such managerial, administrative,
research, and other services as the Secretary considers
necessary to carry out the purposes of the Commercial
Service.
(3) District offices.--The Secretary shall establish
district offices of the Commercial Service in any
United States city in a region in which the Secretary
determines that there is a need for Federal Government
export assistance.
(4) Foreign offices.--(A) The Secretary may, after
consultation with the Secretary of State, establish foreign
offices of the Commercial Service. These offices shall be
located in foreign cities in regions in which the Secretary
determines there are significant business opportunities for
United States exporters.
(B) The Secretary may, in consultation with the
Secretary of State, assign to the foreign offices
Commercial Service Officers and such other personnel as
the Secretary considers necessary. In employing
Commercial Service Officers and such other personnel,
the Secretary shall use the Foreign Service personnel
system in accordance with the Foreign Service Act of
1980. The Secretary shall designate a Commercial
Officer as head of each foreign office.
(C) Upon the request of the Secretary, the Secretary
of State shall attach the Commercial Service Officers
and other employees of each foreign office to the
diplomatic mission of the United States in the country
in which that foreign office is located, and shall
obtain for them diplomatic privileges and immunities
equivalent to those enjoyed by Foreign Service
personnel of comparable rank and salary.
(D) For purposes of official representation, the
senior Commercial Service Officer in each country shall
be considered to be the senior commercial
representative of the United States in that country,
and the United States chief of mission in that country
shall accord that officer all privileges and
responsibilities appropriate to the position of senior
commercial representative of other countries.
(E) The Secretary of State is authorized, upon the
request of the Secretary, to provide office space,
equipment, facilities, and such other administrative
and clerical services as may be required for the
operation of the foreign offices. The Secretary is
authorized to reimburse or advance funds to the
Secretary of State for such services.
(F) The authority of the Secretary under this
paragraph shall be subject to section 103 of the
Diplomatic Security Act (22 U.S.C. 4802).
(d) Rank of Commercial Service Officers in Foreign
Missions.--
(1) Minister-counselor.--Notwithstanding any other
provision of law, the Secretary is authorized to
designate up to 16 United States missions abroad at
which the senior Commercial Service Officer will be
able to use the diplomatic title of Minister Counselor.
The Secretary of State shall accord the diplomatic
title of Minister-Counselor to the senior Commercial
Service Officer assigned to a United States mission so
designated.
(2) Consul general.--In any United States consulate
in which a vacancy occurs in the position of Consul
General, the Secretary of State, in consultation with
the Secretary, shall consider filling that vacancy with
a Commercial Service Officer if the primary functions
of the consulate are of a commercial nature and if
there are significant business opportunities for United
States exporters in the region in which the consulate
is located.
(e) Information Dissemination.--In order to carry out
subsection (b)(7), to lessen the cost of distribution of
information produced by the Commercial Service, and to make
that information more readily available, the Secretary should
establish a system for distributing that information in those
areas where no district offices of the Commercial Service are
located. Distributors of the information should be State export
promotion agencies or private export and trade promotion
associations. The distribution system should be consistent with
cost recovery objectives of the Department of Commerce.
(f) Cooperation in Federal Financing and Insurance
Programs.--To assist the Commercial Service in carrying out
subsection (b)(9), and consistent with the provisions of
section 13 of the Export-Import Bank Act of 1945, the Export-
Import Bank of the United States, the [Overseas Private
Investment Corporation] United States International Development
Finance Corporation, the Trade and Development Program, and the
Small Business Administration shall each--
(1) provide to the Commercial Service complete and
current information on all of its programs and
financing practices; and
(2) undertake a training program regarding such
programs and practices for Commercial Service Officers
who are designated by the Assistant Secretary of
Commerce and Director General of the Commercial
Service.
(g) Audits.--The Inspector General of the Department of
Commerce shall perform periodic audits of the operations of the
Commercial Service, but at least once every 3 years. The
Inspector General shall report to the Congress the results of
each such audit. In addition to an overview of the activities
and effectiveness of Commercial Service operations, the audit
shall include--
(1) an evaluation of the current placement of
domestic personnel and recommendations for transferring
personnel among district offices;
(2) an evaluation of the current placement of
foreign-based personnel and recommendations for
transferring such personnel in response to newly
emerging business opportunities for United States
exporters; and
(3) an evaluation of the personnel system and its
management, including the recruitment, assignment,
promotion, and performance appraisal of personnel, the
use of limited appointees, and the ``time-in-class''
system.
(h) Report by the Secretary.--Nol tater than 1 year after the
date of the enactment of this Act, the Secretary shall submit a
report to the Congress on the feasibility and desirability, the
progress to date, the present status, and the 5-year outlook,
of the comprehensive integration of the functions and personnel
of the foreign and domestic export promotion operations within
the International Trade Administration of the Department of
Commerce.
(i) Pay of Assistant Secretary and Director General.--Section
5315 of title 5, United States Code, is amended by adding at
the end the following: ``Assistant Secretary of Commerce and
Director General of the United States and Foreign Commercial
Service.''.
(j) Definitions.--For purposes of this Section--
(1) the term ``Secretary'' means the Secretary of
Commerce;
(2) the term ``Commercial Service'' means the United
States and Foreign Commercial Service;
(3) the term ``United States exporter'' means--
(A) a United States citizen;
(B) a corporation, partnership, or other
association created under the laws of the
United States or of any State; or
(C) a foreign corporation, partnership, or
other association, more than 95 percent of
which is owned by persons described in
subparagraphs (A) and (B), that exports, or
seeks to export, goods or services produced in
the United States;
(4) the term ``small business'' means any small
business concern as defined under section 3 of the
Small Business Act (15 U.S.C. 632);
(5) the term ``State'' means any of the several
States, the District of Columbia, or any commonwealth,
territory, or possession of the United States; and
(6) the term ``United States'' means the several
States, the District of Columbia, and any commonwealth,
territory, or possession of the United States.
* * * * * * *
SEC. 2312. TRADE PROMOTION COORDINATING COMMITTEE.
(a) Establishment and Purpose.--The President shall estab
lish the Trade Promotion Coordinating Committee (hereafter in
this section referred to as the ``TPCC''). The purpose of the
TPCC shall be--
(1) to provide a unifying framework to coordinate the
export promotion and export financing activities of the
United States Government; and
(2) to develop a governmentwide strategic plan for
carrying out Federal export promotion and export cing
programs.
(b) Duties.--The TPCC shall--
(1) coordinate the development of the trade promotion
policies and programs of the Umted States Government;
(2) provide a central source of information for the
business community on Federal export promotion and
export financing programs;
(3) coordinate official trade promotion efforts to
ensure better delivery of services to United States
businesses, including--
(A) information and counseling on United
States export promotion and export financing
programs and opportunities in foreign markets;
(B) representation of United States business
interests abroad; and
(C) assistance with foreign business contacts
and projects,
(4) prevent unnecessary duplication in Federal export
promotion and export financing activities;
(5) assess the appropriate levels and allocation of
resources among agencies in support of export promotion
and export financing and provide recommendations to the
President based on its assessment; and
(6) carry out such other duties as are deemed to be
appropriate, consistent with the purpose of the TPCC.
(c) Strategic Plan.--To carry out subsection (b), the TPCC
shall develop and implement a governmentwide strategic plan for
Federal trade promotion efforts. Such plan shall--
(1) establish a set of priorities for Federal
activities in support of United States exports and
explain the rationale for the priorities;
(2) review current Federal programs designed to
promote the sale of United States exports in light of
the priorities established under paragraph 8) and
develop a plan to bring such activities into line with
the priorities and to improve coordination of such
activities;
(3) identify areas of overlap and duplication among
Federal export promotion activities and propose means
of eliminating them;
(4) propose to the President an annual unified
Federal trade promotion budget that supports the plan
for priority activities and improved coordination
established under paragraph (2) and eliminates funding
for the areas of overlap and duplication identified
under paragraph (3);
(5) review efforts by the States (as defined in
section 2301(i)) to promote United States exports and
propose means of developing cooperation between State
and Federal efforts, including co-location, cost-
sharing between Federal and State export promotion
programs, and sharing of market research data;
(6) reflect the recommendations of the United States
National Tourism Organization to the degree considered
appropriate by the TPCC; and
(7) in coordination with State trade promotion
agencies, include a survey and analysis regarding the
overall effectiveness of Federal-State coordination and
export promotion goals on an annual basis, to further
include best practices, recommendations to better
assist small businesses, and other relevant matters.
(d) Membership.--
(1) In general.--Members of the TPCC shall include
representatives from--
(A) the Department of Commerce;
(B) the Department of State;
(C) the Department of the Treasury;
(E) the Department of Energy;
(F) the Department of Transportation;
(G) the Office of the United States Trade
Representative;
(H) the Small Business Administration;
(I) the Agency for International Development;
(J) the Trade and Development Program;
(K) the [Overseas Private Investment
Corporation] United States International
Development Finance Corporation;
(L) the Export-Import Bank of the United
States; and
(M) at the discretion of the President, such
other departments or agencies as may be
necessary.
(2) Representatives from state trade promotion
agencies.--The TPCC shall also include 1 or more
members appointed by the President who are
representatives of State trade promotion agencies.
(3) Chairperson.--The Secretary of Commerce shall
serve as the chairperson of the TPCC.
(e) Member Qualifications.--Members of the TPCC (other than
members described in subsection (d)(2)) shall be appointed by
the heads of their respective departments or agencies. Such
members, as well as alternates designated by any members unable
to attend a meeting of the TPCC, shall be individuals who
exercise significant decisionmaking authority in their
respective departments or agencies.
(f) Report to the Congress.--The chairperson of the TPCC
shall prepare and submit to the Committee on Banking, Housing,
and Urban Affairs of the Senate, and the Committee on
International Relations of the House of Representatives, not
later than March 30 of each year, a report describing--
(1) the strategic plan developed by the TPCC pursuant
to subsection (c), the implementation of such plan
(including implementation of the survey and analysis
described in paragraph (7) of that subsection), and any
revisions thereto; and
(2) the implementation of sections 303 and 304 of the
Freedom for Russia and Emerging Democracies and Open
Markets Support Act of 1992 (22 U.S.C. 5823 and 5824)
concerning funding for export promotion activities and
the interagency working groups on energy of the TPCC.
* * * * * * *
----------
SECTION 5402 OF THE OMNIBUS TRADE AND COMPETITIVENESS ACT OF 1988
SEC. 5402. INTERAGENCY TRADE DATA ADVISORY COMMITTEE.
(a) Establishment.--There is established the Interagency
Trade Data Advisory Committee.
(b) Membership.--The Committee shall consist of--
(1) the United States Trade Representative;
(2) the Secretary of Agriculture;
(3) the Secretary of Defense;
(4) the Secretary of Commerce;
(5) the Secretary of Labor;
(6) the Secretary of the Treasury;
(7) the Secretary of State;
(8) the Director of the Office of Management and
Budget;
(9) the Director of Central Intelligence;
(10) the Chairman of the Federal Reserve Board;
(11) the Chairman of the International Trade
Commission;
(12) the President of the Export-Import Bank;
(13) [the President of the Overseas Private
Investment Corporation] the Chief Executive Officer of
the United States International Development Finance
Corporation; and
(14) such other members as may be appointed by the
President from full-time officers or employees of the
Federal Government.
(c) Chairman.--The Secretary of Commerce shall be Chajrman of
the Committee.
(d) Designees.--Any member of the Committee may appoint a
designee to serve in place of such member on the Committee.
----------
TITLE 18, UNITED STATES CODE
PART I--CRIMES
* * * * * * *
CHAPTER 33--EMBLEMS, INSIGNIA, AND NAMES
* * * * * * *
Sec. 709. False advertising or misuse of names to indicate Federal
agency
Whoever, except as permitted by the laws of the United
States, uses the words ``national'', ``Federal'', ``United
States'', ``reserve'', or ``Deposit Insurance'' as part of the
business or firm name of a person, corporation, partnership,
business trust, association or other business entity engaged in
the banking, loan, building and loan, brokerage, factorage,
insurance, indemnity, savings or trust business; or
Whoever falsely advertises or represents, or publishes or
displays any sign, symbol or advertisement reasonably
calculated to convey the impression that a nonmember bank,
banking association, firm or partnership is a member of the
Federal reserve system; or
Whoever, except as expressly authorized by Federal law, uses
the words ``Federal Deposit'', ``Federal Deposit Insurance'',
or ``Federal Deposit Insurance Corporation'' or a combination
of any three of these words, as the name or a part thereof
under which he or it does business, or advertises or otherwise
represents falsely by any device whatsoever that his or its
deposit liabilities, obligations, certificates, or shares are
insured or guaranteed by the Federal Deposit Insurance
Corporation, or by the United States or by any instrumentality
thereof, or whoever advertises that his or its deposits,
shares, or accounts are federally insured, or falsely
advertises or otherwise represents by any device whatsoever the
extent to which or the manner in which the deposit liabilities
of an insured bank or banks are insured by the Federal Deposit
Insurance Corporation; or
Whoever, other than a bona fide organization or association
of Federal or State credit unions or except as permitted by the
laws of the United States, uses as a firm or business name or
transacts business using the words ``National Credit Union'',
``National Credit Union Administration'', ``National Credit
Union Board'', ``National Credit Union Share Insurance Fund'',
``Share Insurance'', or ``Central Liquidity Facility'', or the
letters ``NCUA'', ``NCUSIF'', or ``CLF'', or any other
combination or variation of those words or letters alone or
with other words or letters, or any device or symbol or other
means, reasonably calculated to convey the false impression
that such name or business has some connection with, or
authorization from, the National Credit Union Administration,
the Government of the United States, or any agency thereof,
which does not in fact exist, or falsely advertises or
otherwise represents by any device whatsoever that his or its
business, product, or service has been in any way endorsed,
authorized, or approved by the National Credit Union
Administration, the Government of the United States, or any
agency thereof, or falsely advertises or otherwise represents
by any device whatsoever that his or its deposit liabilities,
obligations, certificates, shares, or accounts are insured
under the Federal Credit Union Act or by the United States or
any instrumentality thereof, or being an insured credit union
as defined in that Act falsely advertises or otherwise
represents by any device whatsoever the extent to which or the
manner in which share holdings in such credit union are insured
under such Act; or
Whoever, not being organized under chapter 7 of Title 12,
advertises or represents that it makes Federal Farm loans or
advertises or offers for sale as Federal Farm loan bonds any
bond not issued under chapter 7 of Title 12, or uses the word
``Federal'' or the words ``United States'' or any other words
implying Government ownership, obligation or supervision in
advertising or offering for sale any bond, note, mortgage or
other security not issued by the Government of the United
States under the provisions of said chapter 7 or some other Act
of Congress; or
Whoever uses the words ``Federal Home Loan Bank'' or any
combination or variation of these words alone or with other
words as a business name or part of a business name, or falsely
publishes, advertises or represents by any device or symbol or
other means reasonably calculated to convey the impression that
he or it is a Federal Home Loan Bank or member of or subscriber
for the stock of a Federal Home Loan Bank; or
Whoever uses the words ``Federal intermediate credit bank''
as part of the business or firm name for any person,
corporation, partnership, business trust, association or other
business entity not organized as an intermediate credit bank
under the laws of the United States; or
Whoever uses as a firm or business name the words
``Department of Housing and Urban Development'', ``Housing and
Home Finance Agency'', ``Federal Housing Administration'',
``Government National Mortgage Association'', ``United States
Housing Authority'', or ``Public Housing Administration'' or
the letters ``HUD'', ``FHA'', ``PHA'', or ``USHA'', or any
combination or variation of those words or the letters ``HUD'',
``FHA'', ``PHA'', or ``USHA'' alone or with other words or
letters reasonably calculated to convey the false impression
that such name or business has some connection with, or
authorization from, the Department of Housing and Urban
Development, the Housing and Home Finance Agency, the Federal
Housing Administration, the Government National Mortgage
Association, the United States Housing Authority, the Public
Housing Administration, the Government of the United States, or
any agency thereof, which does not in fact exist, or falsely
claims that any repair, improvement, or alteration of any
existing structure is required or recommended by the Department
of Housing and Urban Development, the Housing and Home Finance
Agency, the Federal Housing Administration, the Government
National Mortgage Association, the United States Housing
Authority, the Public Housing Administration, the Government of
the United States, or any agency thereof, for the purpose of
inducing any person to enter into a contract for the making of
such repairs, alterations, or improvements, or falsely
advertises or falsely represents by any device whatsoever that
any housing unit, project, business, or product has been in any
way endorsed, authorized, inspected, appraised, or approved by
the Department of Housing and Urban Development, the Housing
and Home Finance Agency, the Federal Housing Administration,
the Government National Mortgage Association, the United States
Housing Authority, the Public Housing Administration, the
Government of the United States, or any agency thereof; or
Whoever, except with the written permission of the Director
of the Federal Bureau of Investigation, knowingly uses the
words ``Federal Bureau of Investigation'' or the initials
``F.B.I.'', or any colorable imitation of such words or
initials, in connection with any advertisement, circular, book,
pamphlet or other publication, play, motion picture, broadcast,
telecast, or other production, in a manner reasonably
calculated to convey the impression that such advertisement,
circular, book, pamphlet or other publication, play, motion
picture, broadcast, telecast, or other production, is approved,
endorsed, or authorized by the Federal Bureau of Investigation;
or
Whoever, except with written permission of the Director of
the United States Secret Service, knowingly uses the words
``Secret Service'', ``Secret Service Uniformed Division'', the
initials ``U.S.S.S.'', ``U.D.'', or any colorable imitation of
such words or initials, in connection with, or as a part of any
advertisement, circular, book, pamphlet or other publication,
play, motion picture, broadcast, telecast, other production,
product, or item, in a manner reasonably calculated to convey
the impression that such advertisement, circular, book,
pamphlet or other publication, product, or item, is approved,
endorsed, or authorized by or associated in any manner with,
the United States Secret Service, or the United States Secret
Service Uniformed Division; or
Whoever, except with the written permission of the Director
of the United States Mint, knowingly uses the words ``United
States Mint'' or ``U.S. Mint'' or any colorable imitation of
such words, in connection with any advertisement, circular,
book, pamphlet, or other publication, play, motion picture,
broadcast, telecast, or other production, in a manner
reasonably calculated to convey the impression that such
advertisement, circular, book, pamphlet, or other publication,
play, motion picture, broadcast, telecast, or other production,
is approved, endorsed, or authorized by or associated in any
manner with, the United States Mint; or
Whoever uses the words [``Overseas Private Investment'',
``Overseas Private Investment Corporation'', or ``OPIC'',]
``United States International Development Finance Corporation''
or ``DFC'' as part of the business or firm name of a person,
corporation, partnership, business trust, association, or
business entity; or
Whoever, except with the written permission of the
Administrator of the Drug Enforcement Administration, knowingly
uses the words ``Drug Enforcement Administration'' or the
initials ``DEA'' or any colorable imitation of such words or
initials, in connection with any advertisement, circular, book,
pamphlet, software or other publication, play, motion picture,
broadcast, telecast, or other production, in a manner
reasonably calculated to convey the impression that such
advertisement, circular, book, pamphlet, software or other
publication, play, motion picture, broadcast, telecast, or
other production is approved, endorsed, or authorized by the
Drug Enforcement Administration; or
Whoever, except with the written permission of the Director
of the United States Marshals Service, knowingly uses the words
``United States Marshals Service'', ``U.S. Marshals Service'',
``United States Marshal'', ``U.S. Marshal'', ``U.S.M.S.'', or
any colorable imitation of any such words, or the likeness of a
United States Marshals Service badge, logo, or insignia on any
item of apparel, in connection with any advertisement,
circular, book, pamphlet, software, or other publication, or
any play, motion picture, broadcast, telecast, or other
production, in a manner that is reasonably calculated to convey
the impression that the wearer of the item of apparel is acting
pursuant to the legal authority of the United States Marshals
Service, or to convey the impression that such advertisement,
circular, book, pamphlet, software, or other publication, or
such play, motion picture, broadcast, telecast, or other
production, is approved, endorsed, or authorized by the United
States Marshals Service;
Shall be punished as follows: a corporation, partnership,
business trust, association, or other business entity, by a
fine under this title; an officer or member thereof
participating or knowingly acquiescing in such violation or any
individual violating this section, by a fine under this title
or imprisonment for not more than one year, or both.
This section shall not make unlawful the use of any name or
title which was lawful on the date of enactment of this title.
This section shall not make unlawful the use of the word
``national'' as part of the name of any business or firm
engaged in the insurance or indemnity business, whether such
firm was engaged in the insurance or indemnity business prior
or subsequent to the date of enactment of this paragraph.
A violation of this section may be enjoined at the suit of
the United States Attorney, upon complaint by any duly
authorized representative of any department or agency of the
United States.
* * * * * * *
----------
TRADE FACILITATION AND TRADE ENFORCEMENT ACT OF 2015
* * * * * * *
TITLE VII--ENGAGEMENT ON CURRENCY EXCHANGE RATE AND ECONOMIC POLICIES
SEC. 701. ENHANCEMENT OF ENGAGEMENT ON CURRENCY EXCHANGE RATE AND
ECONOMIC POLICIES WITH CERTAIN MAJOR TRADING
PARTNERS OF THE UNITED STATES.
(a) Major Trading Partner Report.--
(1) In general.--Not later than 180 days after the
date of the enactment of this Act, and not less
frequently than once every 180 days thereafter, the
Secretary shall submit to the appropriate committees of
Congress a report on the macroeconomic and currency
exchange rate policies of each country that is a major
trading partner of the United States.
(2) Elements.--
(A) In general.--Each report submitted under
paragraph (1) shall contain--
(i) for each country that is a major
trading partner of the United States--
(I) that country's bilateral
trade balance with the United
States;
(II) that country's current
account balance as a percentage
of its gross domestic product;
(III) the change in that
country's current account
balance as a percentage of its
gross domestic product during
the 3-year period preceding the
submission of the report;
(IV) that country's foreign
exchange reserves as a
percentage of its short-term
debt; and
(V) that country's foreign
exchange reserves as a
percentage of its gross
domestic product; and
(ii) an enhanced analysis of
macroeconomic and exchange rate
policies for each country that is a
major trading partner of the United
States that has--
(I) a significant bilateral
trade surplus with the United
States;
(II) a material current
account surplus; and
(III) engaged in persistent
one-sided intervention in the
foreign exchange market.
(B) Enhanced analysis.--Each enhanced
analysis under subparagraph (A)(ii) shall
include, for each country with respect to which
an analysis is made under that subparagraph--
(i) a description of developments in
the currency markets of that country,
including, to the greatest extent
feasible, developments with respect to
currency interventions;
(ii) a description of trends in the
real effective exchange rate of the
currency of that country and in the
degree of undervaluation of that
currency;
(iii) an analysis of changes in the
capital controls and trade restrictions
of that country; and
(iv) patterns in the reserve
accumulation of that country.
(3) Assessment factors.--Not later than 90 days after
the date of the enactment of this Act, the Secretary
shall publicly describe the factors used to assess
under paragraph (2)(A)(ii) whether a country has a
significant bilateral trade surplus with the United
States, has a material current account surplus, and has
engaged in persistent one-sided intervention in the
foreign exchange market.
(b) Engagement on Exchange Rate and Economic Policies.--
(1) In general.--The President, through the
Secretary, shall commence enhanced bilateral engagement
with each country for which an enhanced analysis of
macroeconomic and currency exchange rate policies is
included in the report submitted under subsection (a),
in order to, as appropriate--
(A) urge implementation of policies to
address the causes of the undervaluation of its
currency, its significant bilateral trade
surplus with the United States, and its
material current account surplus, including
undervaluation and surpluses relating to
exchange rate management;
(B) express the concern of the United States
with respect to the adverse trade and economic
effects of that undervaluation and those
surpluses;
(C) advise that country of the ability of the
President to take action under subsection (c);
and/or
(D) develop a plan with specific actions to
address that undervaluation and those
surpluses.
(2) Waiver.--
(A) In general.--The Secretary may waive the
requirement under paragraph (1) to commence
enhanced bilateral engagement with a country if
the Secretary determines that commencing
enhanced bilateral engagement with the
country--
(i) would have an adverse impact on
the United States economy greater than
the benefits of such action; or
(ii) would cause serious harm to the
national security of the United States.
(B) Certification and report.--The Secretary
shall promptly certify to Congress a
determination under subparagraph (A) and
promptly submit to Congress a report that
describes in detail the reasons for the
Secretary's determination under subparagraph
(A).
(c) Remedial Action.--
(1) In general.--If, on or after the date that is one
year after the commencement of enhanced bilateral
engagement by the President, through the Secretary,
with respect to a country under subsection (b)(1), the
Secretary determines that the country has failed to
adopt appropriate policies to correct the
undervaluation and surpluses described in subsection
(b)(1)(A) with respect to that country, the President
shall take one or more of the following actions:
(A) Prohibit the [Overseas Private Investment
Corporation] United States International
Development Finance Corporation from approving
any new financing (including any insurance,
reinsurance, or guarantee) with respect to a
project located in that country on and after
such date.
(B) Except as provided in paragraph (3), and
pursuant to paragraph (4), prohibit the Federal
Government from procuring, or entering into any
contract for the procurement of, goods or
services from that country on and after such
date.
(C) Instruct the United States Executive
Director of the International Monetary Fund to
call for additional rigorous surveillance of
the macroeconomic and exchange rate policies of
that country and, as appropriate, formal
consultations on findings of currency
manipulation.
(D) Instruct the United States Trade
Representative to take into account, in
consultation with the Secretary, in assessing
whether to enter into a bilateral or regional
trade agreement with that country or to
initiate or participate in negotiations with
respect to a bilateral or regional trade
agreement with that country, the extent to
which that country has failed to adopt
appropriate policies to correct the
undervaluation and surpluses described in
subsection (b)(1)(A).
(2) Waiver.--
(A) In general.--The President may waive the
requirement under paragraph (1) to take
remedial action if the President determines
that taking remedial action under paragraph (1)
would--
(i) have an adverse impact on the
United States economy greater than the
benefits of taking remedial action; or
(ii) would cause serious harm to the
national security of the United States.
(B) Certification and report.--The President
shall promptly certify to Congress a
determination under subparagraph (A) and
promptly submit to Congress a report that
describes in detail the reasons for the
President's determination under subparagraph
(A).
(3) Exception.--The President may not apply a
prohibition under paragraph (1)(B) in a manner that is
inconsistent with United States obligations under
international agreements.
(4) Consultations.--
(A) Office of management and budget.--Before
applying a prohibition under paragraph (1)(B),
the President shall consult with the Director
of the Office of Management and Budget to
determine whether such prohibition would
subject the taxpayers of the United States to
unreasonable cost.
(B) Congress.--The President shall consult
with the appropriate committees of Congress
with respect to any action the President takes
under paragraph (1)(B), including whether the
President has consulted as required under
subparagraph (A).
(d) Definitions.--In this section:
(1) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) the Committee on Banking, Housing, and
Urban Affairs and the Committee on Finance of
the Senate; and
(B) the Committee on Financial Services and
the Committee on Ways and Means of the House of
Representatives.
(2) Country.--The term ``country'' means a foreign
country, dependent territory, or possession of a
foreign country, and may include an association of 2 or
more foreign countries, dependent territories, or
possessions of countries into a customs union outside
the United States.
(3) Real effective exchange rate.--The term ``real
effective exchange rate'' means a weighted average of
bilateral exchange rates, expressed in price-adjusted
terms.
(4) Secretary.--The term ``Secretary'' means the
Secretary of the Treasury.
* * * * * * *
----------
HIGHER EDUCATION ACT OF 1965
* * * * * * *
TITLE VI--INTERNATIONAL EDUCATION PROGRAMS
* * * * * * *
PART C--INSTITUTE FOR INTERNATIONAL PUBLIC POLICY
* * * * * * *
SEC. 625. INTERNSHIPS.
(a) In General.--The Institute shall enter into agreements
with historically Black colleges and universities, tribally
controlled colleges or universities, Alaska Native-serving,
Native Hawaiian-serving, and Hispanic-serving institutions,
other institutions of higher education with significant numbers
of minority students, and institutions of higher education with
programs in training foreign service professionals, to provide
academic year internships during the junior and senior year and
summer internships following the sophomore and junior academic
years, by work placements with international, voluntary or
government organizations or agencies, including the Agency for
International Development, the Department of State, the
International Monetary Fund, the National Security Council, the
Organization of American States, the Export-Import Bank, the
[Overseas Private Investment Corporation] United States
International Development Finance Corporation, the Department
of State, Office of the United States Trade Representative, the
World Bank, and the United Nations.
(b) Postbaccalaureate Internships.--The Institute shall enter
into agreements with institutions of higher education described
in the first sentence of subsection (a) to conduct internships
for students who have completed study for a baccalaureate
degree. The internship program authorized by this subsection
shall--
(1) assist the students to prepare for a master's
degree program;
(2) be carried out with the assistance of the Woodrow
Wilson International Center for Scholars; and
(3) contain work experience for the students designed
to contribute to the students' preparation for a
master's degree program.
(c) Interagency Committee on Minority Careers in
International Affairs.--
(1) Establishment.--There is established in the
executive branch of the Federal Government an
Interagency Committee on Minority Careers in
International Affairs composed of not less than 7
members, including--
(A) the Under Secretary for Farm and Foreign
Agricultural Services of the Department of
Agriculture, or the Under Secretary's designee;
(B) the Assistant Secretary and Director
General, of the United States and Foreign
Commercial Service of the Department of
Commerce, or the Assistant Secretary and
Director General's designee;
(C) the Under Secretary of Defense for
Personnel and Readiness of the Department of
Defense, or the Under Secretary's designee;
(D) the Assistant Secretary for Postsecondary
Education in the Department of Education, or
the Assistant Secretary's designee;
(E) the Director General of the Foreign
Service of the Department of State, or the
Director General's designee; and
(F) the General Counsel of the Agency for
International Development, or the General
Counsel's designee.
(2) Functions.--The Interagency Committee established
by this section shall--
(A) on an annual basis inform the Secretary
and the Institute regarding ways to advise
students participating in the internship
program assisted under this section with
respect to goals for careers in international
affairs;
(B) locate for students potential internship
opportunities in the Federal Government related
to international affairs; and
(C) promote policies in each department and
agency participating in the Committee that are
designed to carry out the objectives of this
part.
* * * * * * *
----------
ELECTRIFY AFRICA ACT OF 2015
* * * * * * *
SEC. 5. PRIORITIZATION OF EFFORTS AND ASSISTANCE FOR POWER PROJECTS IN
SUB-SAHARAN AFRICA BY KEY UNITED STATES
INSTITUTIONS.
(a) In general.--In pursuing the policy goals described in
section 3, the Administrator of the United States Agency for
International Development, the Director of the Trade and
Development Agency, the [Overseas Private Investment
Corporation] United States International Development Finance
Corporation, and the Chief Executive Officer and Board of
Directors of the Millennium Challenge Corporation should, as
appropriate, prioritize and expedite institutional efforts and
assistance to facilitate the involvement of such institutions
in power projects and markets, both on- and off-grid, in sub-
Saharan Africa and partner with other investors and local
institutions in sub-Saharan Africa, including private sector
actors, to specifically increase access to reliable,
affordable, and sustainable power in sub-Saharan Africa,
including through--
(1) maximizing the number of people with new access
to power and power services;
(2) improving and expanding the generation,
transmission and distribution of power;
(3) providing reliable power to people and businesses
in urban and rural communities;
(4) addressing the energy needs of marginalized
people living in areas where there is little or no
access to a power grid and developing plans to
systematically increase coverage in rural areas;
(5) reducing transmission and distribution losses and
improving end-use efficiency and demand-side
management;
(6) reducing energy-related impediments to business
productivity and investment; and
(7) building the capacity of countries in sub-Saharan
Africa to monitor and appropriately and transparently
regulate the power sector and encourage private
investment in power production and distribution.
(b) Effectiveness Measurement.--In prioritizing and
expediting institutional efforts and assistance pursuant to
this section, as appropriate, such institutions shall use
clear, accountable, and metric-based targets to measure the
effectiveness of such guarantees and assistance in achieving
the goals described in section 3.
(c) Promotion of Use of Private Financing and Assistance.--In
carrying out policies under this section, such institutions
shall promote the use of private financing and assistance and
seek ways to remove barriers to private financing for projects
and programs under this Act, including through charitable
organizations.
(d) Rule of Construction.--Nothing in this section may be
construed to authorize modifying or limiting the portfolio of
the institutions covered by subsection (a) in other developing
regions.
* * * * * * *
SEC. 7. PROGRESS REPORT.
(a) In general.--Not later than three years after the date of
the enactment of this Act, the President shall transmit to the
Committee on Foreign Affairs of the House of Representatives
and the Committee on Foreign Relations of the Senate a report
on progress made toward achieving the strategy described in
section 4 that includes the following:
(1) A report on United States programs supporting
implementation of policy and legislative changes
leading to increased power generation and access in
sub-Saharan Africa, including a description of the
number, type, and status of policy, regulatory, and
legislative changes initiated or implemented as a
result of programs funded or supported by the United
States in countries in sub-Saharan Africa to support
increased power generation and access after the date of
the enactment of this Act.
(2) A description of power projects receiving United
States Government support and how such projects,
including off-grid efforts, are intended to achieve the
strategy described in section 4.
(3) For each project described in paragraph (2)--
(A) a description of how the project fits
into, or encourages modifications of, the
national energy plan of the country in which
the project will be carried out, including
encouraging regulatory reform in that county;
(B) an estimate of the total cost of the
project to the consumer, the country in which
the project will be carried out, and other
investors;
(C) the amount of financing provided or
guaranteed by the United States Government for
the project;
(D) an estimate of United States Government
resources for the project, itemized by funding
source, including from the [Overseas Private
Investment Corporation] United States
International Development Finance Corporation,
the United States Agency for International
Development, the Department of the Treasury,
and other appropriate United States Government
departments and agencies;
(E) an estimate of the number and regional
locations of individuals, communities,
businesses, schools, and health facilities that
have gained power connections as a result of
the project, with a description of how the
reliability, affordability, and sustainability
of power has been improved as of the date of
the report;
(F) an assessment of the increase in the
number of people and businesses with access to
power, and in the operating electrical power
capacity in megawatts as a result of the
project between the date of the enactment of
this Act and the date of the report;
(G) a description of efforts to gain
meaningful local consultation for projects
associated with this Act and any significant
estimated noneconomic effects of the efforts
carried out pursuant to this Act; and
(H) a description of the participation by
small and medium enterprises based in sub-
Saharan Africa on projects associated with this
Act.
----------
FOREIGN AID TRANSPARENCY AND ACCOUNTABILITY ACT OF 2016
* * * * * * *
SEC. 2. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Relations of the
Senate;
(B) the Committee on Appropriations of the
Senate;
(C) the Committee on Foreign Affairs of the
House of Representatives; and
(D) the Committee on Appropriations of the
House of Representatives.
(2) Evaluation.--The term ``evaluation'' means, with
respect to a covered United States foreign assistance
program, the systematic collection and analysis of
information about the characteristics and outcomes of
the program, including projects conducted under such
program, as a basis for--
(A) making judgments and evaluations
regarding the program;
(B) improving program effectiveness; and
(C) informing decisions about current and
future programming.
(3) Covered united states foreign assistance.--The
term ``covered United States foreign assistance'' means
assistance authorized under--
(A) part I of the Foreign Assistance Act of
1961 (22 U.S.C. 2151 et seq.), [except for--]
[(i) title IV of chapter 2 of such
part (relating to the Overseas Private
Investment Corporation); and
[(ii) chapter 3] except for chapter 3
of such part (relating to International
Organizations and Programs);
(B) chapter 4 of part II of the Foreign
Assistance Act of 1961 (22 U.S.C. 2346 et seq.;
relating to Economic Support Fund);
(C) the Millennium Challenge Act of 2003 (22
U.S.C. 7701 et seq.); [and]
(D) the Food for Peace Act (7 U.S.C. 1721 et
seq.)[.]; and
(E) the Better Utilization of Investments
Leading to Development Act of 2018.
* * * * * * *
----------
SUPPORT FOR EAST EUROPEAN DEMOCRACY (SEED) ACT OF 1989
* * * * * * *
SEC. 2. SUPPORT FOR EAST EUROPEAN DEMOCRACY (SEED) PROGRAM.
(a) SEED Program.--The United States shall implement,
beginning in fiscal year 1990, a concerted Program of Support
for East European Democracy (which may also be referred to as
the ``SEED Program''). The SEED Program shall be comprised of
diverse undertakings designed to provide cost-effective
assistance to those countries of Eastern Europe that have taken
substantive steps toward institutionalizing political democracy
and economic pluralism.
(b) Objectives of Seed Assistance.--The President should
ensure that the assistance provided to East European countries
pursuant to this Act is designed--
(1) to contribute to the development of democratic
institutions and political pluralism characterized by--
(A) the establishment of fully democratic and
representative political systems based on free
and fair elections,
(B) effective recognition of fundamental
liberties and individual freedoms, including
freedom of speech, religion, and association,
(C) termination of all laws and regulations
which impede the operation of a free press and
the formation of political parties,
(D) creation of an independent judiciary, and
(E) establishment of non-partisan military,
security, and police forces;
(2) to promote the development of a free market
economic system characterized by--
(A) privatization of economic entities,
(B) establishment of full rights to acquire
and hold private property, including land and
the benefits of contractual relations,
(C) simplification of regulatory controls
regarding the establishment and operation of
businesses,
(D) dismantlement of all wage and price-
controls,
(E) removal of trade restrictions, including
on both unports and exports,
(F) liberalization of investment and capital,
including the repatriation of profits by
foreign investors;
(G) tax policies which provide incentives for
economic activity and investment,
(H) establishment of rights to own and
operate private banks and other financial
service firms, as well as unrestricted access
to private sources of credit, and
(I) access to a market for stocks, bonds, and
other instruments through which individuals may
invest in the private sector; and
(3) not to contribute any substantial benefit--
(A) to Communist or other political parties
or organizations which are not committed to
respect for the democratic process, or
(B) to the defense or security forces of any
member country of the Warsaw Pact.
(c) SEED Actions.--Assistance and other activities under the
SEED Program (which may be referred to as ``SEED Actions'')
shall include activities such as the following:
(1) Leadership in the world bank and international
monetary fund.--United States leadership in
supporting--
(A) loans by the International Bank for
Reconstruction and Development and its
affiliated institutions in the World Bank group
that are designed to modernize
industry,agriculture, and infrastructure, and
(B) International Monetary 9und programs
designed to stimulate sound economic growth.
(2) Currency stabilization loans.--United States
leadership in supporting multilateral agreement to
provide government-to-government loans for currency
stabilization where such loans can reduce inflation and
thereby foster conditions necessary for the effective
implementation of economic reforms.
(3) Debt reduction and rescheduling.--Participation
in multilateral activities aimed at reducing and
rescheduling a country's international debt, when
reduction and deferral of debt payments can assist the
process of political and economic transition.
(4) Agricultural assistance.--Assistance through the
grant and concessional sale of food and other
agricultural commodities and products when such
assistance can ease critical shortages but not inhibit
agricultural production and marketing in the recipient
country.
(5) Enterprise funds.--Grants to support private,
nonprofit ``Enterprise Funds'', designated by the
President pursuant to law and governed by a Board of
Directors, which undertake loans, grants, equity
investments, feasibility studies, technical assistance,
training, and other forms of assistance to private
enterprise activities in the Eastern European country
for which the Enterprise Fund so is designated.
(6) Labor market-oriented technical assistance.--
Technical assistance programs directed at promoting
labor market reforms and facilitating economic
adjustment.
(7) Technical training.--Programs to provide
technical skills to assist in the development of a
market economy.
(8) Peace corps.--Establishment of Peace Corps
programs.
(9) Support for indigenous credit unions.--Support
for the establishment of indigenous credit unions.
(10) Generalized system of preferences.--Eligibility
for trade benefits under the Generalized System of
Preferences.
(11) Normal trade relations.--The granting of
temporary or permanent nondiscriminatory treatment to
the products of an East European country through the
application of the criteria and procedures established
by section 402 of the Trade Act of 1974 (19 U.S.C.
2432; commonly referred to as the ``Jackson-Vanik
amendment'').
[(12) Overseas private investment corporation.--
Programs of the Overseas Private Investment
Corporation.]
(12) United states international development finance
corporation.--Programs of the United States
International Development Finance Corporation.
(13) Export-import bank programs.--Programs of the
Export-Import Bank of the United States.
(14) Trade and development program activities.--Trade
and Development Program activities under the Foreign
Assistance Act of 1961.
(15) Investment treaties.--Negotiation of bilateral
investment treaties.
(16) Special tax treatment of below-market loans.--
Exempting bonds from Internal Revenue Code rules
relating to below-market loans.
(17) Exchange activities.--Expanded exchange
activities under the Fulbright, International Visitors,
and other programs conducted by the United States
Information Agency.
(18) Cultural centers.--Contributions toward the
establishment of reciprocal cultural centers that can
facilitate educational and cultural exchange and
expanded understanding of Western social democracy.
(19) Sister institutions.--Establishment of sister
institution programs between American and East European
schools and universities, towns and cities, and other
organizations in such fields as medicine and health
care, business management, environmental protection,
and agriculture.
(20) Scholarships.--Scholarships to enable students
to study in the United States.
(21) Science and technology exchanges.--Grants for
the implementation of bilateral agreements providing
for cooperation in science and technology exchange.
(22) Assistance for democratic institutions.--
Assistance designed to support the development of
legal, legislative, electoral, journalistic, and other
institutions of free, pluralist societies.
(23) Environmental asssistance.--Environmental
assistance directed at overcoming crucial deficiencies
in air and water quality and other determinants of a
healthful society.
(24) Medical assistance.--Medical assistance
specifically targeted to overcome severe deficiencies
in pharmaceuticals and other basic health supplies.
(25) Encouragement for private investment and
voluntary assistance.--Encouraging private investment
and voluntary private assistance, using a variety of
means including a SEED Information Center System and
the provision by the Department of Defense of
transportation for private nonfinancial contributions.
* * * * * * *
TITLE II--PRIVATE SECTOR DEVELOPMENT
SEC. 201. ENTERPRISE FUNDS FOR POLAND AND HUNGARY.
(a) Purposes.--The purposes of this section are to promote--
(1) development of the Polish and Hungarian private
sectors, including small businesses, the agricultural
sector, and joint ventures with United States and host
country participants, and
(2) policies and practices conducive to private
sector development in Poland and Hungary,
through loans, grants, equity investments, feasibility studies,
technical assistance, training, insurance, guarantees, and
other measures.
(b) Authorization of Appropriations.--To carry out the
purposes specified in subsection (a), there are authorized to
be appropriated to the President--
(1) $240,000,000 to support the Polish-American
Enterprise Fund; and
(2) $60,000,000 to support the Hungarian-American
Enterprise Fund.
Such amounts are authorized to be made available until
expended.
(c) Nonapplicability of Other Laws.--The funds appropriated
under subsection (b) may be made available to the Polish-
American Enterprise Fund and the Hungarian-American Enterprise
Fund and used for the purposes of this section notwithstanding
any other provision of law.
(d) Designation of Enterprise Funds.--
(1) Designation.--The President is authorized to
designate two private, nonprofit organizations as
eligible to receive funds and support pursuant to this
section upon determining that such organizations have
been established for the purposes specified in
subsection (a). For purposes of this Act, the
organizations so designated shall be referred to as the
Polish-American Enterprise Fund and the Hungarian-
American Enterprise Fund (hereinafter in this section
referred to as the ``Enterprise Funds'').
(2) Consultation with congress.--The President shall
consult with the leadership of each House of Congress
before designating an organization pursuant to
paragraph (1).
(3) Board of directors.--(A) Each Enterprise Fund
shall be governed by a Board of Directors comprised of
private citizens of the United States, and citizens of
the respective host country, who have demonstrated
experience and expertise in those areas of private
sector development in which the Enterprise Fund is
involved.
(B) A majority of the members of the Board of
Directors of each Enterprise Fund shall be United
States citizens.: Provided, That, as to Enterprise
Funds established with respect to more than one host
country, such Enterprise Fund may, in lieu of the
appointment of citizens of the host countries to its
Board of Directors, establish an advisory council for
the host region comprised of citizens of each of the
host countries or establish separate advisory councils
for each of the host countries (hereinafter in this
section referred to as the 'Advisory Councils'), with
which the Enterprise Fund's policies and proposed
activities and such host country citizens shall satisfy
the experience and expertise requirements of this
clause.
(C) A host country citizen who is not committed to
respect for democracy and a free market economy may not
serve as a member of the Board of Directors of an
Enterprise Fund.
(4) Eligibility of enterprise funds for grants.--
Grants may be made to an Enterprise Fund under this
section only if the Enterprise Fund agrees to comply
with the requirements specified in this section.
(5) Private character of enterprise funds.--Nothing
in this section shall be construed to make an
Enterprise Fund an agency or establishment of the
United States Government, or to make the officers,
employees, or members of the Board of Directors of an
Enterprise Fund officers or employees of the United
States for purposes of title 5, United States Code.
(e) Grants to Enterprise Funds.--Funds appropriated to the
President pursuant to subsection (b) shall be granted to the
Enterprise Funds by the [Agency for International Development]
United States International Development Finance Corporation to
enable the Enterprise Funds to carry out the purposes specified
in subsection (a) and for the administrative expenses of each
Enterprise Fund.
(f) Eligible Programs and Projects.--
(1) In general.--The Enterprise Funds may provide
assistance pursuant to this section only for programs
and projects which are consistent with the purposes set
forth in subsection (a).
(2) Employee stock ownership plans.--Funds available
to the Enterprise Funds may be used to encourage the
establishment of Employee Stock Ownership Plans (ESOPs)
in Poland and Hungary.
(3) Indigenous credit unions.--Funds available to the
Enterprise Funds may be used for technical and other
assistance to support the development of indigenous
credit unions in Poland and Hungary. As used in this
paragraph, the term ``credit union'' means a member-
owned, nonprofit, cooperative depository institution--
(A) which is formed to permit individuals in
the field of membership specified in such
institution's charter to pool their savings,
lend the savings to one another, and own the
organization where they save, borrow, and
obtain related financial services; and
(B) whose members are united by a common bond
and democratically operate the institution.
(4) Telecommunication modernization in poland.--The
Polish-American Enterprise Fund may use up to
$25,000,000 for grants for projects providing for the
early introduction in Poland of modern telephone
systems and telecommunications technology, which are
crucial in establishing the conditions for successful
transition to political democracy and economic
pluralism.
(5) Economic foundation of nszz solidarnosc.--Funds
available to the Polish-American Enterprise Fund may be
used to support the Economic Foundation of NSZZ
Solidarnosc.
(g) Matters To Be Considered by Enterprise Funds.--In
carrying out this section, each Enterprise Fund shall take into
account such considerations as internationally recognized
worker rights and other internationally recognized human
rights, environmental factors, United States economic and
employment effects, and the likelihood of commercial viability
of the activity receiving assistance from the Enterprise Fund.
(h) Retention of Interest.--An Enterprise Fund may hold funds
granted to it pursuant to this section in interest-bearing
accounts, prior to the disbursement of such funds for purposes
specified in subsection (a), and may retain for such program
purposes any interest earned on such deposits without returning
such interest to the Treasury of the United States and without
further appropriation by the Congress.
(i) Use of United States Private Venture Capital.--In order
to maximize the effectiveness of the activities of the
Enterprise Funds, each Enterprise Fund may conduct public
offerings or private placements for the purpose of soliciting
and accepting United States venture capital which may be used,
separately or together with funds made available pursuant to
this section, for any lawful investment purpose that the Board
of Directors of the Enterprise Fund may determine in carrying
out this section. Financial returns on Enterprise Fund
investments that include a component of private venture capital
may be distributed, at such times and in such amounts as the
Board of Directors of the Enterprise Fund may determine, to the
investors of such capital.
(j) Financial Instruments for Individual Investment in
Poland.--In order to maximize the effectiveness of the
activities of the Polish-American Enterprise Fund, that
Enterprise Fund should undertake all possible efforts to
establish financial instruments that will enable individuals to
invest in the private sectors of Poland and that will thereby
have the effect of multiplying the impact of United States
grants to that Enterprise Fund.
(k) Nonapplicability of Other Laws.--Executive branch
agencies may conduct programs and activities and provide
services in support of the activities of the Enterprise Funds
notwithstanding any other provision of law.
(l) Limitation on Payments to Enterprise Fund Personnel.--
(1) No part of the funds of an Enterprise Fund shall
inure to the benefit of any board member, officer, or
employee of such Enterprise Fund, except as salary or
reasonable compensation for services subject to
paragraph (2).
(2) An Enterprise Fund shall not pay compensation for
services to--
(A) any board member of the Enterprise Fund,
except for services as a board member; or
(B) any firm, association, or entity in which
a board member of the Enterprise Fund serves as
partner, director, officer, or employee.
(3) Nothing in paragraph (2) shall preclude payment
for services performed before the date of enactment of
this subsection nor for arrangements approved by the
grantor and notified in writing to the Committees on
Appropriations.
(m) Independent Private Audits.--The accounts of each
Enterprise Fund shall be audited annually in accordance with
generally accepted auditing standards by independent certified
public accountants or independent licensed public accountants
certified or licensed by a regulatory authority of a State or
other political subdivision of the United States. The report of
each such independent audit shall be included in the annual
report required by this section.
(n) GAO Audits.--The financial transactions undertaken
pursuant to this section by each Enterprise Fund may be audited
by the General Accounting Office in accordance with such
principles and procedures and under such rules and regulations
as may be prescribed by the Comptroller General of the United
States, so long as the Enterprise Fund is in receipt of United
States Government grants.
(o) Recordkeeping Requirements.--The enterprise Funds
shallensure--
(1) that each recipient of assistance provided
through the Enterprise Funds under this section keeps--
(A) separate accounts with respect to such
assistance;
(B) such records as may be reasonably
necessary to disclose fully the amount and the
disposition by such recipient of the proceeds
of such assistance, the total cost of the
project or undertaking in connection with which
such assistance is given or used, and the
amount and nature of that portion of the cost
of the project or undertaking supplied by other
sources; and
(C) such other records as will facilitate an
effective audit; and
(2) that the Enterprise Funds, or any of their duly
authorized representatives, have access for the purpose
of audit and examination to any books, documents,
papers, and records of the recipient that are pertinent
to assistance provided through the Enterprise Funds
under this section.
(p) Annual Reports.--Each Enterprise Fund shall publish an
annual report, which shall include a comprehensive and detailed
description of the Enterprise Fund's operations, activities,
financial condition, and accomplishments under this section for
the preceding fiscal year. This report shall be published not
later than January 31 each year, beginning in 1991.
* * * * * * *
----------
SECTION 202 OF THE CUBAN LIBERTY AND DEMOCRATIC SOLIDARITY (LIBERTAD)
ACT OF 1996
SEC. 202. ASSISTANCE FOR THE CUBAN PEOPLE.
(a) Authorization.--
(1) In general.--The President shall develop a plan
for providing economic assistance to Cuba at such time
as the President determines that a transition
government or a democratically elected government in
Cuba (as determined under section 203(c)) is in power.
(2) Effect on other laws.--Assistance may be provided
under this section subject to an authorization of
appropriations and subject to the availability of
appropriations.
(b) Plan for assistance.--
(1) Development of plan.--The President shall develop
a plan for providing assistance under this section--
(A) to Cuba when a transition government in
Cuba is in power; and
(B) to Cuba when a democratically elected
government in Cuba is in power.
(2) Types of assistance.--Assistance under the plan
developed under paragraph (1) may, subject to an
authorization of appropriations and subject to the
availability of appropriations, include the following:
(A) Transition government(i) Except as
provided in clause (ii), assistance to Cuba
under a transition government shall, subject to
an authorization of appropriations and subject
to the availability of appropriations, be
limited to--
(I) such food, medicine,
medical supplies and equipment,
and assistance to meet
emergency energy needs, as is
necessary to meet the basic
human needs of the Cuban
people; and
(II) assistance described in
subparagraph (C).
(ii) Assistance in addition to
assistance under clause (i) may be
provided, but only after the President
certifies to the appropriate
congressional committees, in accordance
with procedures applicable to
reprogramming notifications under
section 634A of the Foreign Assistance
Act of 1961, that such assistance is
essential to the successful completion
of the transition to democracy.
(iii) Only after a transition
government in Cuba is in power, freedom
of individuals to travel to visit their
relatives without any restrictions
shall be permitted.
(B) Democratically elected government.--
Assistance to a democratically elected
government in Cuba may, subject to an
authorization of appropriations and subject to
the availability of appropriations, consist of
economic assistance in addition to assistance
available under subparagraph (A), together with
assistance described in subparagraph (C). Such
economic assistance may include--
(i) assistance under chapter 1 of
part I (relating to development
assistance), and chapter 4 of part II
(relating to the economic support
fund), of the Foreign Assistance Act of
1961;
(ii) assistance under the Food for
Peace Act;
(iii) financing, guarantees, and
other forms of assistance provided by
the Export-Import Bank of the United
States;
(iv) financial support provided by
the [Overseas Private Investment
Corporation] United States
International Development Finance
Corporation for investment projects in
Cuba;
(v) assistance provided by the Trade
and Development Agency;
(vi) Peace Corps programs; and
(vii) other appropriate assistance to
carry out the policy of section 201.
(C) Military adjustment assistance.--
Assistance to a transition government in Cuba
and to a democratically elected government in
Cuba shall also include assistance in preparing
the Cuban military forces to adjust to an
appropriate role in a democracy.
(c) Strategy for Distribution.--The plan developed under
subsection (b) shall include a strategy for distributing
assistance under the plan.
(d) Distribution.--Assistance under the plan developed under
subsection (b) shall be provided through United States
Government organizations and nongovernmental organizations and
private and voluntary organizations, whether within or outside
the United States, including humanitarian, educational, labor,
and private sector organizations.
(e) International Efforts.--The President shall take the
necessary steps--
(1) to seek to obtain the agreement of other
countries and of international financial institutions
and multilateral organizations to provide to a
transition government in Cuba, and to a democratically
elected government in Cuba, assistance comparable to
that provided by the United States under this Act; and
(2) to work with such countries, institutions, and
organizations to coordinate all such assistance
programs.
(f) Communication with the Cuban people.--The President shall
take the necessary steps to communicate to the Cuban people the
plan for assistance developed under this section.
(g) Report to Congress.--Not later than 180 days after the
date of the enactment of this Act, the President shall transmit
to the appropriate congressional committees a report describing
in detail the plan developed under this section.
(h) Report on Trade and Investment Relations.--
(1) Report to congress.--The President, following the
transmittal to the Congress of a determination under
section 203(c)(3) that a democratically elected
government in Cuba is in power, shall submit to the
Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the
Senate and the appropriate congressional committees a
report that describes--
(A) acts, policies, and practices which
constitute significant barriers to, or
distortions of, United States trade in goods or
services or foreign direct investment with
respect to Cuba;
(B) policy objectives of the United States
regarding trade relations with a democratically
elected government in Cuba, and the reasons
therefor, including possible--
(i) reciprocal extension of
nondiscriminatory trade treatment
(most-favored-nation treatment);
(ii) designation of Cuba as a
beneficiary developing country under
title V of the Trade Act of 1974
(relating to the Generalized System of
Preferences) or as a beneficiary
country under the Caribbean Basin
Economic Recovery Act, and the
implications of such designation with
respect to trade with any other country
that is such a beneficiary developing
country or beneficiary country or is a
party to the North American Free Trade
Agreement; and
(iii) negotiations regarding free
trade, including the accession of Cuba
to the North American Free Trade
Agreement;
(C) spccific trade negotiating objectives of
the United States with respect tc Cuba,
including the objectives described in section
108(b)(5) of the North American Free Trade
Agreement Implementation Act (19
U.S.C.3317(b)(5)); and
(D) actions proposed or anticipated to be
undertaken, and any proposed legislation
necessary or appropriate, to achieve any of
such policy and negotiating objectives.
(2) Consultation.--The President shall consult with
the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the
Senate and the appropriate congressional committees and
shall seek advice from the appropriate advisory
committees established under section 135 of the Trade
Act of 1974 regarding the policy and negotiating
objectives and the legislative proposals described in
paragraph (1).
----------
INTERNATIONAL RELIGIOUS FREEDOM ACT OF 1998
* * * * * * *
TITLE IV--PRESIDENTIAL ACTIONS
Subtitle I--Targeted Responses to Violations of Religious Freedom
Abroad
* * * * * * *
SEC. 405. DESCRIPTION OF PRESIDENTIAL ACTIONS.
(a) Description of Presidential Actions.--Except as
provided in subsection (d), the Presidential actions referred
to in this subsection are the following:
(1) A private demarche.
(2) An official public demarche.
(3) A public condemnation.
(4) A public condemnation within one or more
multilateral fora.
(5) The delay or cancellation of one or more
scientific exchanges.
(6) The delay or cancellation of one or more cultural
exchanges.
(7) The denial of one or more working, official, or
state visits.
(8) The delay or cancellation of one or more working,
official, or state visits.
(9) The withdrawal, limitation, or suspension of
United States development assistance in accordance with
section 116 of the Foreign Assistance Act of 1961.
(10) Directing the Export-Import Bank of the United
States, the [Overseas Private Investment Corporation]
United States International Development Finance
Corporation, or the Trade and Development Agency not to
approve the issuance of any (or a specified number of)
guarantees, insurance, extensions of credit, or
participations in the extension of credit with respect
to the specific government, agency, instrumentality, or
official found or determined by the President to be
responsible for violations under section 401 or 402.
(11) The withdrawal, limitation, or suspension of
United States security assistance in accordance with
section 502B of the Foreign Assistance Act of 1961.
(12) Consistent with section 701 of the International
Financial Institutions Act of 1977, directing the
United States executive directors of international
financial institutions to oppose and vote against loans
primarily benefiting the specific foreign government,
agency, instrumentality, or official found or
determined by the President to be responsible for
violations under section 401 or 402.
(13) Ordering the heads of the appropriate United
States agencies not to issue any (or a specified number
of) specific licenses, and not to grant any other
specific authority (or a specified number of
authorities), to export any goods or technology to the
specific foreign government, agency, instrumentality,
or official found or determined by the President to be
responsible for violations under section 401 or 402,
under--
(A) the Export Administration Act of 1979;
(B) the Arms Export Control Act;
(C) the Atomic Energy Act of 1954; or
(D) any other statute that requires the prior
review and approval of the United States
Government as a condition for the export or
reexport of goods or services.
(14) Prohibiting any United States financial
institution from making loans or providing credits
totaling more than $10,000,000 in any 12-month period
to the specific foreign government, agency,
instrumentality, or official found or determined by the
President to be responsible for violations under
section 401 or 402.
(15) Prohibiting the United States Government from
procuring, or entering into any contract for the
procurement of, any goods or services from the foreign
government, entities, or officials found or determined
by the President to be responsible for violations under
section 401 or 402.
(b) Commensurate Action.--Except as provided in subsection
(d), the President may substitute any other action authorized
by law for any action described in paragraphs (1) through (15)
of subsection (a) if such action is commensurate in effect to
the action substituted and if the action would further the
policy of the United States set forth in section 2(b) of this
Act. The President shall seek to take all appropriate and
feasible actions authorized by law to obtain the cessation of
the violations. If commensurate action is taken, the President
shall report such action, together with an explanation for
taking such action, to the appropriate congressional
committees.
(c) Binding Agreements.--The President may negotiate and
enter into a binding agreement with a foreign government that
obligates such government to cease, or take substantial steps
to address and phase out, the act, policy, or practice
constituting the violation of religious freedom. The entry into
force of a binding agreement for the cessation of the
violations shall be a primary objective for the President in
responding to a foreign government that has engaged in or
tolerated particularly severe violations of religious freedom.
(d) Exceptions.--Any action taken pursuant to subsection (a)
or (b) may not prohibit or restrict the provision of medicine,
medical equipment or supplies, food, or other humanitarian
assistance.
* * * * * * *
----------
TRAFFICKING VICTIMS PROTECTION ACT OF 2000
* * * * * * *
DIVISION A--TRAFFICKING VICTIMS PROTECTION ACT OF 2000
* * * * * * *
SEC. 103. DEFINITIONS.
In this division:
(1) Abuse or threatened abuse of law or legal
process.--The term ``abuse or threatened abuse of the
legal process'' means the use or threatened use of a
law or legal process, whether administrative, civil, or
criminal, in any manner or for any purpose for which
the law was not designed, in order to exert pressure on
another person to cause that person to take some action
or refrain from taking some action.
(2) Appropriate congressional committees.--The term
``appropriate congressional committees'' means the
Committee on Foreign Relations and the Committee on the
Judiciary of the Senate and the Committee on Foreign
Affairs and the Committee on the Judiciary of the House
of Representatives.
(3) Coercion.--The term ``coercion'' means--
(A) threats of serious harm to or physical
restraint against any person;
(B) any scheme, plan, or pattern intended to
cause a person to believe that failure to
perform an act would result in serious harm to
or physical restraint against any person; or
(C) the abuse or threatened abuse of the
legal process.
(4) Commercial sex act.--The term ``commercial sex
act'' means any sex act on account of which anything of
value is given to or received by any person.
(5) Debt bondage.--The term ``debt bondage'' means
the status or condition of a debtor arising from a
pledge by the debtor of his or her personal services or
of those of a person under his or her control as a
security for debt, if the value of those services as
reasonably assessed is not applied toward the
liquidation of the debt or the length and nature of
those services are not respectively limited and
defined.
(6) Involuntary servitude.--The term ``involuntary
servitude'' includes a condition of servitude induced
by means of--
(A) any scheme, plan, or pattern intended to
cause a person to believe that, if the person
did not enter into or continue in such
condition, that person or another person would
suffer serious harm or physical restraint; or
(B) the abuse or threatened abuse of the
legal process.
(7) Minimum standards for the elimination of
trafficking.--The term ``minimum standards for the
elimination of trafficking'' means the standards set
forth in section 108.
(8) Nonhumanitarian, nontrade-related foreign
assistance.--The term ``nonhumanitarian, nontrade-
related foreign assistance'' means--
(A) any assistance under the Foreign
Assistance Act of 1961, other than--
(i) assistance under chapter 4 of
part II of that Act in support of
programs of nongovernmental
organizations that is made available
for any program, project, or activity
eligible for assistance under chapter 1
of part I of that Act;
(ii) assistance under chapter 8 of
part I of that Act;
(iii) any other narcotics-related
assistance under part I of that Act or
under chapter 4 or 5 part II of that
Act, but any such assistance provided
under this clause shall be subject to
the prior notification procedures
applicable to reprogrammings pursuant
to section 634A of that Act;
(iv) disaster relief assistance,
including any assistance under chapter
9 of part I of that Act;
(v) antiterrorism assistance under
chapter 8 of part II of that Act;
(vi) assistance for refugees;
(vii) humanitarian and other
development assistance in support of
programs of nongovernmental
organizations under chapters 1 and 10
of that Act;
[(viii) programs under title IV of
chapter 2 of part I of that Act,
relating to the Overseas Private
Investment Corporation; and]
(viii) any support under title II of
the Better Utilization of Investments
Leading to Development Act of 2018
relating to the United States
International Development Finance
Corporation; and
(ix) other programs involving trade-
related or humanitarian assistance; and
(B) sales, or financing on any terms, under
the Arms Export Control Act, other than sales
or financing provided for narcotics-related
purposes following notification in accordance
with the prior notification procedures
applicable to reprogrammings pursuant to
section 634A of the Foreign Assistance Act of
1961.
(9) Severe forms of trafficking in persons.--The term
``severe forms of trafficking in persons'' means--
(A) sex trafficking in which a commercial sex
act is induced by force, fraud, or coercion, or
in which the person induced to perform such act
has not attained 18 years of age; or
(B) the recruitment, harboring,
transportation, provision, or obtaining of a
person for labor or services, through the use
of force, fraud, or coercion for the purpose of
subjection to involuntary servitude, peonage,
debt bondage, or slavery.
(10) Sex trafficking.--The term ``sex trafficking''
means the recruitment, harboring, transportation,
provision, obtaining, patronizing, or soliciting of a
person for the purpose of a commercial sex act.
(11) State.--The term ``State'' means each of the
several States of the United States, the District of
Columbia, the Commonwealth of Puerto Rico, the United
States Virgin Islands, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, and
territories and possessions of the United States.
(12) Task force.--The term ``Task Force'' means the
Interagency Task Force to Monitor and Combat
Trafficking established under section 105.
(13) United states.--The term ``United States'' means
the fifty States of the United States, the District of
Columbia, the Commonwealth of Puerto Rico, the Virgin
Islands, American Samoa, Guam, the Commonwealth of the
Northern Mariana Islands, and the territories and
possessions of the United States.
(14) Victim of a severe form of trafficking.--The
term ``victim of a severe form of trafficking'' means a
person subject to an act or practice described in
paragraph (9).
(15) Victim of trafficking.--The term ``victim of
trafficking'' means a person subjected to an act or
practice described in paragraph (9) or (10).
* * * * * * *
----------
SECTION 732 OF THE GLOBAL ENVIRONMENTAL PROTECTION ASSISTANCE ACT OF
1989
SEC. 732. REDUCTION OF GREENHOUSE GAS INTENSITY.
(a) Lead Agency.--
(1) In general.--The Department of State shall act as
the lead agency for integrating into United States
foreign policy the goal of reducing greenhouse gas
intensity in developing countries.
(2) Reports.--
(A) Initial report.--Not later than 180 days
after August 8, 2005, the Secretary of State
shall submit to the appropriate authorizing and
appropriating committees of Congress an initial
report, based on the most recent information
available to the Secretary from reliable public
sources, that identifies the 25 developing
countries that are the largest greenhouse gas
emitters, including for each country--
(i) an estimate of the quantity and
types of energy used;
(ii) an estimate of the greenhouse
gas intensity of the energy,
manufacturing, agricultural, and
transportation sectors;
(iii) a description 1 the progress of
any significant projects undertaken to
reduce greenhouse gas intensity;
(iv) a description of the potential
for undertaking projects to reduce
greenhouse gas intensity;
(v) a description of any obstacles to
the reduction of greenhouse gas
intensity; and
(vi) a description of the best
practices learned by the Agency for
International Development from
conducting previous pilot and
demonstration projects to reduce
greenhouse gas intensity.
(B) Update.--Not later than 18 months after
the date on which the initial report is
submitted under subparagraph (A), the Secretary
shall submit to the appropriate authorizing and
appropriating committees of Congress, based on
the best information available to the
Secretary, an update of the information
provided in the initial report.
(C) Use.--
(i) Initial report.--The Secretary of
State shall use the initial report
submitted under subparagraph (A) to
establish baselines for the developing
countries identified in the report with
respect to the information provided
under clauses (i) and (ii) of that
subparagraph.
(ii) Annual reports.--The Secretary
of State shall use the annual reports
prepared under subparagraph (B) and any
other information available to the
Secretary to track the progress of the
developing countries with respect to
reducing greenhouse gas intensity.
(b) Projects.--- The Secretary of State, in coordination with
Administrator of the United States Agency for International
Development, shall (directly or through agreements with the
World Bank, the International Monetary Fund, the [Overseas
Private Investment Corporation] United States International
Development Finance Corporation, and other development
institutions) provide assistance to developing countries
specifically for projects to reduce greenhouse gas intensity,
including projects to--
(1) leverage, through bilateral agreements, funds for
reduction of greenhouse gas intensity;
(2) increase private investment in projects and
activities to reduce greenhouse gas intensity; and
(3) expedite the deployment of technology to reduce
greenhouse gas intensity.
(c) Focus.--In providing assistance under subsection (b), the
Secretary of State shall focus on--
(1) promoting the rule of law, property rights,
contract protection, and economic freedom; and
(2) increasing capacity, infrastructure, and
training.
(d) Priority.--In providing assistance under subsection (b),
the Secretary of State shall give priority to projects in the
25 developing countries identified in the report submitted
under subsection (a)(2)(A).
----------
UKRAINE FREEDOM SUPPORT ACT OF 2014
* * * * * * *
SEC. 7. EXPANDED NONMILITARY ASSISTANCE FOR UKRAINE.
(a) Assistance to Internally Displaced People in Ukraine.--
(1) In general.--Not later than 30 days after the
date of the enactment of this Act, the Secretary of
State shall submit a plan, including actions by the
United States Government, other governments, and
international organizations, to meet the need for
protection of and assistance for internally displaced
persons in Ukraine, to--
(A) the Committee on Foreign Relations, the
Committee on Appropriations, and the Committee
on Energy and Natural Resources of the Senate;
and
(B) the Committee on Foreign Affairs, the
Committee on Appropriations, and the Committee
on Energy and Commerce of the House of
Representatives.
(2) Elements.--The plan required by paragraph (1)
should include, as appropriate, activities in support
of--
(A) helping to establish a functional and
adequately resourced central registration
system in Ukraine that can ensure coordination
of efforts to provide assistance to internally
displaced persons in different regions;
(B) encouraging adoption of legislation in
Ukraine that protects internally displaced
persons from discrimination based on their
status and provides simplified procedures for
obtaining the new residency registration or
other official documentation that is a
prerequisite to receiving appropriate social
payments under the laws of Ukraine, such as
pensions and disability, child, and
unemployment benefits; and
(C) helping to ensure that information is
available to internally displaced persons
about--
(i) government agencies and
independent groups that can provide
assistance to such persons in various
regions; and
(ii) evacuation assistance available
to persons seeking to flee armed
conflict areas.
(3) Assistance through international organizations.--
The President shall instruct the United States
permanent representative or executive director, as the
case may be, to the relevant United Nations voluntary
agencies, including the United Nations High
Commissioner for Refugees and the United Nations Office
for the Coordination of Humanitarian Affairs, and other
appropriate international organizations, to use the
voice and vote of the United States to support
appropriate assistance for internally displaced persons
in Ukraine.
(b) Assistance to the Defense Sector of Ukraine.--The
Secretary of State and the Secretary of Defense should assist
entities in the defense sector of Ukraine to reorient exports
away from customers in the Russian Federation and to find
appropriate alternative markets for those entities in the
defense sector of Ukraine that have already significantly
reduced exports to and cooperation with entities in the defense
sector of the Russian Federation.
(c) Assistance To Address the Energy Crisis in Ukraine.--
(1) Emergency energy assistance.--
(A) Plan required.--The Secretary of State
and the Secretary of Energy, in collaboration
with the Administrator of the United States
Agency for International Development and the
Administrator of the Federal Emergency
Management Agency, shall work with officials of
the Government of Ukraine to develop a short-
term emergency energy assistance plan designed
to help Ukraine address the potentially severe
short-term heating fuel and electricity
shortages facing Ukraine in 2014 and 2015.
(B) Elements.--The plan required by
subparagraph (A) should include strategies to
address heating fuel and electricity shortages
in Ukraine, including, as appropriate--
(i) the acquisition of short-term,
emergency fuel supplies;
(ii) the repair or replacement of
infrastructure that could impede the
transmission of electricity or
transportation of fuel;
(iii) the prioritization of the
transportation of fuel supplies to the
areas where such supplies are needed
most;
(iv) streamlining emergency
communications throughout national,
regional, and local governments to
manage the potential energy crisis
resulting from heating fuel and
electricity shortages;
(v) forming a crisis management team
within the Government of Ukraine to
specifically address the potential
crisis, including ensuring coordination
of the team's efforts with the efforts
of outside governmental and
nongovernmental entities providing
assistance to address the potential
crisis; and
(vi) developing a public outreach
strategy to facilitate preparation by
the population and communication with
the population in the event of a
crisis.
(C) Assistance.--The Secretary of State, the
Secretary of Energy, and the Administrator of
the United States Agency for International
Development are authorized to provide
assistance in support of, and to invest in
short-term solutions for, enabling Ukraine to
secure the energy safety of the people of
Ukraine during 2014 and 2015, including
through--
(i) procurement and transport of
emergency fuel supplies, including
reverse pipeline flows from Europe;
(ii) provision of technical
assistance for crisis planning, crisis
response, and public outreach;
(iii) repair of infrastructure to
enable the transport of fuel supplies;
(iv) repair of power generating or
power transmission equipment or
facilities;
(v) procurement and installation of
compressors or other appropriate
equipment to enhance short-term natural
gas production;
(vi) procurement of mobile
electricity generation units;
(vii) conversion of natural gas
heating facilities to run on other
fuels, including alternative energy
sources; and
(viii) provision of emergency
weatherization and winterization
materials and supplies.
(2) Reduction of ukraine's reliance on energy
imports.--
(A) Plans required.--The Secretary of State,
in collaboration with the Secretary of Energy
and the Administrator of the United States
Agency for International Development, shall
work with officials of the Government of
Ukraine to develop medium- and long-term plans
to increase energy production and efficiency to
increase energy security by helping Ukraine
reduce its dependence on natural gas imported
from the Russian Federation.
(B) Elements.--The medium- and long-term
plans required by subparagraph (A) should
include strategies, as appropriate, to--
(i) improve corporate governance and
unbundling of state-owned oil and gas
sector firms;
(ii) increase production from natural
gas fields and from other sources,
including renewable energy;
(iii) license new oil and gas blocks
transparently and competitively;
(iv) modernize oil and gas upstream
infrastructure; and
(v) improve energy efficiency.
(C) Prioritization.--The Secretary of State,
the Administrator of the United States Agency
for International Development, and the
Secretary of Energy should, during fiscal years
2015 through 2018, work with other donors,
including multilateral agencies and
nongovernmental organizations, to prioritize,
to the extent practicable and as appropriate,
the provision of assistance from such donors to
help Ukraine to improve energy efficiency,
increase energy supplies produced in Ukraine,
and reduce reliance on energy imports from the
Russian Federation, including natural gas.
(D) Authorization of Appropriations.--There
are authorized to be appropriated $50,000,000
in the aggregate for fiscal years 2016 through
2018 to carry out activities under this
paragraph.
(3) Support from the overseas private investment
corporation.--The [Overseas Private Investment
Corporation] United States International Development
Finance Corporation shall--
(A) prioritize, to the extent practicable,
support for investments to help increase energy
efficiency, develop domestic oil and natural
gas reserves, improve and repair electricity
infrastructure, and develop renewable and other
sources of energy in Ukraine; and
(B) implement procedures for expedited review
and, as appropriate, approval, of applications
[by eligible investors (as defined in section
238 of the Foreign Assistance Act of 1961 (22
U.S.C. 2198))] for loans, loan guarantees, and
insurance for such investments.
(4) Support by the world bank group and the european
bank for reconstruction and development.--The President
shall, to the extent practicable and as appropriate,
direct the United States Executive Directors of the
World Bank Group and the European Bank for
Reconstruction and Development to use the voice, vote,
and influence of the United States to encourage the
World Bank Group and the European Bank for
Reconstruction and Development and other international
financial institutions--
(A) to invest in, and increase their efforts
to promote investment in, projects to improve
energy efficiency, improve and repair
electricity infrastructure, develop domestic
oil and natural gas reserves, and develop
renewable and other sources of energy in
Ukraine; and
(B) to stimulate private investment in such
projects.
(d) Assistance to Civil Society in Ukraine.--
(1) In general.--The Secretary of State and the
Administrator of the United States Agency for
International Development shall, directly or through
nongovernmental or international organizations, such as
the Organization for Security and Co-operation in
Europe, the National Endowment for Democracy, and
related organizations--
(A) strengthen the organizational and
operational capacity of democratic civil
society in Ukraine;
(B) support the efforts of independent media
outlets to broadcast, distribute, and share
information in all regions of Ukraine;
(C) counter corruption and improve
transparency and accountability of institutions
that are part of the Government of Ukraine; and
(D) provide support for democratic organizing
and election monitoring in Ukraine.
(2) Strategy required.--Not later than 60 days after
the date of the enactment of this Act, the President
shall submit a strategy to carry out the activities
described in paragraph (1) to--
(A) the Committee on Foreign Relations and
the Committee on Appropriations of the Senate;
and
(B) the Committee on Foreign Affairs and the
Committee on Appropriations of the House of
Representatives.
(3) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary of State
$20,000,000 for fiscal year 2016 to carry out this
subsection.
(4) Transparency Requirements.--Any assistance
provided pursuant to this subsection shall be conducted
in as transparent of a manner as possible, consistent
with the nature and goals of this subsection. The
President shall provide a briefing on the activities
funded by this subsection at the request of the
committees specified in paragraph (2).
* * * * * * *
----------
GLOBAL FOOD SECURITY ACT OF 2016
* * * * * * *
SEC. 4. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Relations of the
Senate;
(B) the Committee on Agriculture, Nutrition,
and Forestry of the Senate;
(C) the Committee on Appropriations of the
Senate;
(D) the Committee on Foreign Affairs of the
House of Representatives;
(E) the Committee on Agriculture of the House
of Representatives; and
(F) the Committee on Appropriations of the
House of Representatives.
(2) Feed the future innovation labs.--The term ``Feed
the Future Innovation Labs'' means research
partnerships led by United States universities that
advance solutions to reduce global hunger, poverty, and
malnutrition.
(3) Food and nutrition security.--The term ``food and
nutrition security'' means access to, and availability,
utilization, and stability of, sufficient food to meet
caloric and nutritional needs for an active and healthy
life.
(4) Global food security strategy.--The term ``Global
Food Security Strategy'' means the strategy developed
and implemented pursuant to section 5(a).
(5) Key stakeholders.--The term ``key stakeholders''
means actors engaged in efforts to advance global food
security programs and objectives, including--
(A) relevant Federal departments and
agencies;
(B) national and local governments in target
countries;
(C) other bilateral donors;
(D) international and regional organizations;
(E) international, regional, and local
financial institutions;
(F) international, regional, and local
private voluntary, nongovernmental, faith-
based, and civil society organizations;
(G) the private sector, including
agribusinesses and relevant commodities groups;
(H) agricultural producers, including farmer
organizations, cooperatives, small-scale
producers, and women; and
(I) agricultural research and academic
institutions, including land-grant universities
and extension services.
(6) Malnutrition.--The term ``malnutrition'' means
poor nutritional status caused by nutritional
deficiency or excess.
(7) Relevant federal departments and agencies.--The
term ``relevant Federal departments and agencies''
means the United States Agency for International
Development, the Department of Agriculture, the
Department of Commerce, the Department of State, the
Department of the Treasury, the Millennium Challenge
Corporation, the [Overseas Private Investment
Corporation] United States International Development
Finance Corporation, the Peace Corps, the Office of the
United States Trade Representative, the United States
African Development Foundation, the United States
Geological Survey, and any other department or agency
specified by the President for purposes of this
section.
(8) Resilience.--The term ``resilience'' means the
ability of people, households, communities, countries,
and systems to mitigate, adapt to, and recover from
shocks and stresses to food security in a manner that
reduces chronic vulnerability and facilitates inclusive
growth.
(9) Small-scale producer.--The term ``small-scale
producer'' means farmers, pastoralists, foresters, and
fishers that have a low asset base and limited
resources, including land, capital, skills and labor,
and, in the case of farmers, typically farm on fewer
than 5 hectares of land.
(10) Stunting.--The term ``stunting'' refers to a
condition that--
(A) is measured by a height-to-age ratio that
is more than 2 standard deviations below the
median for the population;
(B) manifests in children who are younger
than 2 years of age;
(C) is a process that can continue in
children after they reach 2 years of age,
resulting in an individual being ``stunted'';
(D) is a sign of chronic malnutrition; and
(E) can lead to long-term poor health,
delayed motor development, impaired cognitive
function, and decreased immunity.
(11) Sustainable.--The term ``sustainable'' means the
ability of a target country, community, implementing
partner, or intended beneficiary to maintain, over
time, the programs authorized and outcomes achieved
pursuant to this Act.
(12) Target country.--The term ``target country''
means a developing country that is selected to
participate in agriculture and nutrition security
programs under the Global Food Security Strategy
pursuant to the selection criteria described in section
5(a)(2), including criteria such as the potential for
agriculture-led economic growth, government commitment
to agricultural investment and policy reform,
opportunities for partnerships and regional synergies,
the level of need, and resource availability.
* * * * * * *
----------
COUNTERING RUSSIAN INFLUENCE IN EUROPE AND EURASIA ACT OF 2017
* * * * * * *
TITLE II--SANCTIONS WITH RESPECT TO THE RUSSIAN FEDERATION AND
COMBATING TERRORISM AND ILLICIT FINANCING
* * * * * * *
Subtitle B--Countering Russian Influence in Europe and Eurasia
* * * * * * *
SEC. 257. UKRANIAN ENERGY SECURITY.
(a) Statement of Policy.--It is the policy of the United
States--
(1) to support the Government of Ukraine in restoring
its sovereign and territorial integrity;
(2) to condemn and oppose all of the destabilizing
efforts by the Government of the Russian Federation in
Ukraine in violation of its obligations and
international commitments;
(3) to never recognize the illegal annexation of
Crimea by the Government of the Russian Federation or
the separation of any portion of Ukrainian territory
through the use of military force;
(4) to deter the Government of the Russian Federation
from further destabilizing and invading Ukraine and
other independent countries in Central and Eastern
Europe and the Caucuses;
(5) to assist in promoting reform in regulatory
oversight and operations in Ukraine's energy sector,
including the establishment and empowerment of an
independent regulatory organization;
(6) to encourage and support fair competition, market
liberalization, and reliability in Ukraine's energy
sector;
(7) to help Ukraine and United States allies and
partners in Europe reduce their dependence on Russian
energy resources, especially natural gas, which the
Government of the Russian Federation uses as a weapon
to coerce, intimidate, and influence other countries;
(8) to work with European Union member states and
European Union institutions to promote energy security
through developing diversified and liberalized energy
markets that provide diversified sources, suppliers,
and routes;
(9) to continue to oppose the NordStream 2 pipeline
given its detrimental impacts on the European Union's
energy security, gas market development in Central and
Eastern Europe, and energy reforms in Ukraine; and
(10) that the United States Government should
prioritize the export of United States energy resources
in order to create American jobs, help United States
allies and partners, and strengthen United States
foreign policy.
(b) Plan To Promote Energy Security in Ukraine.--
(1) In general.--The Secretary of State, in
coordination with the Administrator of the United
States Agency for International Development and the
Secretary of Energy, shall work with the Government of
Ukraine to develop a plan to increase energy security
in Ukraine, increase the amount of energy produced in
Ukraine, and reduce Ukraine's reliance on energy
imports from the Russian Federation.
(2) Elements.--The plan developed under paragraph (1)
shall include strategies for market liberalization,
effective regulation and oversight, supply
diversification, energy reliability, and energy
efficiency, such as through supporting--
(A) the promotion of advanced technology and
modern operating practices in Ukraine's oil and
gas sector;
(B) modern geophysical and meteorological
survey work as needed followed by international
tenders to help attract qualified investment
into exploration and development of areas with
untapped resources in Ukraine;
(C) a broadening of Ukraine's electric power
transmission interconnection with Europe;
(D) the strengthening of Ukraine's capability
to maintain electric power grid stability and
reliability;
(E) independent regulatory oversight and
operations of Ukraine's gas market and
electricity sector;
(F) the implementation of primary gas law
including pricing, tariff structure, and legal
regulatory implementation;
(G) privatization of government owned energy
companies through credible legal frameworks and
a transparent process compliant with
international best practices;
(H) procurement and transport of emergency
fuel supplies, including reverse pipeline flows
from Europe;
(I) provision of technical assistance for
crisis planning, crisis response, and public
outreach;
(J) repair of infrastructure to enable the
transport of fuel supplies;
(K) repair of power generating or power
transmission equipment or facilities; and
(L) improved building energy efficiency and
other measures designed to reduce energy demand
in Ukraine.
(3) Reports.--
(A) Implementation of ukraine freedom support
act of 2014 provisions.--Not later than 180
days after the date of the enactment of this
Act, the Secretary of State shall submit to the
appropriate congressional committees a report
detailing the status of implementing the
provisions required under section 7(c) of the
Ukraine Freedom Support Act of 2014 (22 U.S.C.
8926(c)), including detailing the plans
required under that section, the level of
funding that has been allocated to and expended
for the strategies set forth under that
section, and progress that has been made in
implementing the strategies developed pursuant
to that section.
(B) In general.--Not later than 180 days
after the date of the enactment of this Act,
and every 180 days thereafter, the Secretary of
State shall submit to the appropriate
congressional committees a report detailing the
plan developed under paragraph (1), the level
of funding that has been allocated to and
expended for the strategies set forth in
paragraph (2), and progress that has been made
in implementing the strategies.
(C) Briefings.--The Secretary of State, or a
designee of the Secretary, shall brief the
appropriate congressional committees not later
than 30 days after the submission of each
report under subparagraph (B). In addition, the
Department of State shall make relevant
officials available upon request to brief the
appropriate congressional committees on all
available information that relates directly or
indirectly to Ukraine or energy security in
Eastern Europe.
(D) Appropriate congressional committees
defined.--In this paragraph, the term
``appropriate congressional committees''
means--
(i) the Committee on Foreign
Relations and the Committee on
Appropriations of the Senate; and
(ii) the Committee on Foreign Affairs
and the Committee on Appropriations of
the House of Representatives.
(c) Supporting Efforts of Countries in Europe and Eurasia To
Decrease Their Dependence on Russian Sources of Energy.--
(1) Findings.--Congress makes the following findings:
(A) The Government of the Russian Federation
uses its strong position in the energy sector
as leverage to manipulate the internal politics
and foreign relations of the countries of
Europe and Eurasia.
(B) This influence is based not only on the
Russian Federation's oil and natural gas
resources, but also on its state-owned nuclear
power and electricity companies.
(2) Sense of congress.--It is the sense of Congress
that--
(A) the United States should assist the
efforts of the countries of Europe and Eurasia
to enhance their energy security through
diversification of energy supplies in order to
lessen dependencies on Russian Federation
energy resources and state-owned entities; and
(B) the Export-Import Bank of the United
States and the [Overseas Private Investment
Corporation] United States International
Development Finance Corporation should play key
roles in supporting critical energy projects
that contribute to that goal.
(3) Use of countering russian influence fund to
provide technical assistance.--Amounts in the
Countering Russian Influence Fund pursuant to section
254 shall be used to provide technical advice to
countries described in subsection (b)(1) of such
section designed to enhance energy security and lessen
dependence on energy from Russian Federation sources.
(d) Authorization of Appropriations.--There is authorized to
be appropriated for the Department of State a total of
$30,000,000 for fiscal years 2018 and 2019 to carry out the
strategies set forth in subsection (b)(2) and other activities
under this section related to the promotion of energy security
in Ukraine.
(e) Rule of Construction.--Nothing in this section shall be
construed as affecting the responsibilities required and
authorities provided under section 7 of the Ukraine Freedom
Support Act of 2014 (22 U.S.C. 8926).
* * * * * * *
----------
TITLE 31, UNITED STATES CODE
* * * * * * *
SUBTITLE VI--MISCELLANEOUS
* * * * * * *
CHAPTER 91--GOVERNMENT CORPORATIONS
* * * * * * *
Sec. 9101. Definitions
In this chapter--
(1) ``Government corporation'' means a mixed-
ownership Government corporation and a wholly owned
Government corporation.
(2) ``mixed-ownership Government corporation''
means--
(A) the Central Bank for Cooperatives.
(B) the Federal Deposit Insurance
Corporation.
(C) the Federal Home Loan Banks.
(D) the Federal Intermediate Credit Banks.
(E) the Federal Land Banks.
(F) the National Credit Union Administration
Central Liquidity Facility.
(G) the Regional Banks for Cooperatives.
(H) the Rural Telephone Bank when the
ownership, control, and operation of the Bank
are converted under section 410(a) of the Rural
Electrification Act of 1936 (7 U.S.C. 950(a)).
(I) the Financing Corporation.
(J) the Resolution Trust Corporation.
(K) the Resolution Funding Corporation.
(3) ``wholly owned Government corporation'' means--
(A) the Commodity Credit Corporation.
(B) the Community Development Financial
Institutions Fund.
(C) the Export-Import Bank of the United
States.
(D) the Federal Crop Insurance Corporation.
(E) Federal Prison Industries, Incorporated.
(F) the Corporation for National and
Community Service.
(G) the Government National Mortgage
Association.
(H) the [Overseas Private Investment
Corporation] United States International
Development Finance Corporation.
(I) the Pennsylvania Avenue Development
Corporation.
(J) the Pension Benefit Guaranty Corporation.
(K) the Rural Telephone Bank until the
ownership, control, and operation of the Bank
are converted under section 410(a) of the Rural
Electrification Act of 1936 (7 U.S.C. 950(a)).
(L) the Saint Lawrence Seaway Development
Corporation.
(M) the Secretary of Housing and Urban
Development when carrying out duties and powers
related to the Federal Housing Administration
Fund.
(N) the Tennessee Valley Authority.
(P) the Panama Canal Commission.
(Q) the Millennium Challenge Corporation.
(R) the International Clean Energy
Foundation.
* * * * * * *
----------
ENERGY INDEPENDENCE AND SECURITY ACT OF 2007
* * * * * * *
TITLE IX--INTERNATIONAL ENERGY PROGRAMS
* * * * * * *
Subtitle A--Assistance to Promote Clean and Efficient Energy
Technologies in Foreign Countries
* * * * * * *
SEC. 914. ACTIONS BY [OVERSEAS PRIVATE INVESTMENT CORPORATION] UNITED
STATES INTERNATIONAL DEVELOPMENT FINANCE
CORPORATION.
(a) Sense of Congress.--It is the sense of Congress that the
[Overseas Private Investment Corporation] United States
International Development Finance Corporation should promote
greater investment in clean and efficient energy technologies
by--
(1) proactively reaching out to United States
companies that are interested in investing in clean and
efficient energy technologies in countries that are
significant contributors to global greenhouse gas
emissions;
(2) giving preferential treatment to the evaluation
and awarding of projects that involve the investment or
utilization of clean and efficient energy technologies;
and
(3) providing greater flexibility in supporting
projects that involve the investment or utilization of
clean and efficient energy technologies, including
financing, insurance, and other assistance.
(b) Report.--The [Overseas Private Investment Corporation
shall include in its annual report required under section 240A
of the Foreign Assistance Act of 1961 (22 U.S.C. 2200a)] United
States International Development Finance Corporation shall
include in its annual report required under section 403 of the
Better Utilization of Investments Leading to Development Act of
2018--
(1) a description of the activities carried out to
implement this section; or
(2) if the Corporation did not carry out any
activities to implement this section, an explanation of
the reasons therefor.
* * * * * * *
SEC. 916. DEPLOYMENT OF INTERNATIONAL CLEAN AND EFFICIENT ENERGY
TECHNOLOGIES AND INVESTMENT IN GLOBAL ENERGY
MARKETS
(a) Task Force.--
(1) Establishment.--Not later than 90 days after the
date of the enactment of this Act, the President shall
establish a Task Force on International Cooperation for
Clean and Efficient Energy Technologies (in this
section referred to as the ``Task Force'').
(2) Composition.--The Task Force shall be composed of
representatives, appointed by the head of the
respective Federal department or agency, of--
(A) the Council on Environmental Quality;
(B) the Department of Energy;
(C) the Department of Commerce;
(D) the Department of the Treasury;
(E) the Department of State;
(F) the Environmental Protection Agency;
(G) the United States Agency for
International Development;
(H) the Export-Import Bank of the United
States;
(I) the [Overseas Private Investment
Corporation:] United States International
Development Finance Corporation;
(J) the Trade and Development Agency;
(K) the Small Business Administration;
(L) the Office of the United States Trade
Representative; and
(M) other Federal departments and agencies,
as determined by the President.
(3) Chairperson.--The President shall designate a
Chairperson or Co-Chairpersons of the Task Force.
(4) Duties.--The Task Force--
(A) shall develop and assist in the
implementation of the strategy required under
subsection (c); and
(B)(i) shall analyze technology, policy, and
market opportunities for the development,
demonstration, and deployment of clean and
efficient energy technologies on an
international basis; and
(ii) shall examine relevant trade, tax,
finance, international, and other policy issues
to assess which policies, in the United States
and in developing countries, would help open
markets and improve the export of clean and
efficient energy technologies from the United
States.
(5) Termination.--The Task Force, including any
working group established by the Task Force pursuant to
subsection (b), shall terminate 12 years after the date
of the enactment of this Act.
(b) Working Groups.--
(1) Establishment.--The Task Force--
(A) shall establish an Interagency Working
Group on the Export of Clean and Efficient
Energy Technologies (in this section referred
to as the ``Interagency Working Group''); and
(B) may establish other working groups as may
be necessary to carry out this section.
(2) Composition.--The Interagency Working Group shall
be composed of--
(A) the Secretary of Energy, the Secretary of
Commerce, and the Secretary of State, who shall
serve as Co-Chairpersons of the Interagency
Working Group; and
(B) other members, as determined by the
Chairperson or Co-Chairpersons of the Task
Force.
(3) Duties.--The Interagency Working Group shall
coordinate the resources and relevant programs of the
Department of Energy, the Department of Commerce, the
Department of State, and other relevant Federal
departments and agencies to support the export of clean
and efficient energy technologies developed or
demonstrated in the United States to other countries
and the deployment of such clean and efficient energy
technologies in such other countries.
(4) Interagency center.--The Interagency Working
Group--
(A) shall establish an Interagency Center on
the Export of Clean and Efficient Energy
Technologies (in this section referred to as
the ``Interagency Center'') to assist the
Interagency Working Group in carrying out its
duties required under paragraph (3); and
(B) shall locate the Interagency Center at a
site agreed upon by the Co-Chairpersons of the
Interagency Working Group, with the approval of
the Chairperson or Co-Chairpersons of the Task
Force.
(c) Strategy.--
(1) In general.--Not later than 1 year after the date
of the enactment of this Act, the Task Force shall
develop and submit to the President and the appropriate
congressional committees a strategy to--
(A) support the development and
implementation of programs, policies, and
initiatives in developing countries to promote
the adoption and deployment of clean and
efficient energy technologies, with an emphasis
on those developing countries that are expected
to experience the most significant growth in
energy production and use over the next 20
years;
(B) open and expand clean and efficient
energy technology markets and facilitate the
export of clean and efficient energy
technologies to developing countries, in a
manner consistent with United States
obligations as a member of the World Trade
Organization;
(C) integrate into the foreign policy
objectives of the United States the promotion
of--
(i) the deployment of clean and
efficient energy technologies and the
reduction of greenhouse gas emissions
in developing countries; and
(ii) the export of clean and
efficient energy technologies; and
(D) develop financial mechanisms and
instruments, including securities that mitigate
the political and foreign exchange risks of
uses that are consistent with the foreign
policy objectives of the United States by
combining the private sector market and
government enhancements, that--
(i) are cost-effective; and
(ii) facilitate private capital
investment in clean and efficient
energy technology projects in
developing countries.
(2) Updates.--Not later than 3 years after the date
of submission of the strategy under paragraph (1), and
every 3 years thereafter, the Task Force shall update
the strategy in accordance with the requirements of
paragraph (1).
(d) Report.--
(1) In general.--Not later than 3 years after the
date of submission of the strategy under subsection
(c)(1), and every 3 years thereafter, the President
shall transmit to the appropriate congressional
committees a report on the implementation of this
section for the prior 3-year period.
(2) Matters to be included.--The report required
under paragraph (1) shall include the following:
(A) The update of the strategy required under
subsection (c)(2) and a description of the
actions taken by the Task Force to assist in
the implementation of the strategy.
(B) A description of actions taken by the
Task Force to carry out the duties required
under subsection (a)(4)(B).
(C) A description of assistance provided
under this section.
(D) The results of programs, projects, and
activities carried out under this section.
(E) A description of priorities for promoting
the diffusion and adoption of clean and
efficient energy technologies and strategies in
developing countries, taking into account
economic and security interests of the United
States and opportunities for the export of
technology of the United States.
(F) Recommendations to the heads of
appropriate Federal departments and agencies on
methods to streamline Federal programs and
policies to improve the role of such Federal
departments and agencies in the development,
demonstration, and deployment of clean and
efficient energy technologies on an
international basis.
(G) Strategies to integrate representatives
of the private sector and other interested
groups on the export and deployment of clean
and efficient energy technologies.
(H) A description of programs to disseminate
information to the private sector and the
public on clean and efficient energy
technologies and opportunities to transfer such
clean and efficient energy technologies.
(e) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section $5,000,000 for each
of fiscal years 2008 through 2020.
* * * * * * *
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