[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2064 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2064

  To reauthorize the Overseas Private Investment Corporation, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 25, 1997

Mr. Manzullo (for himself, Mr. Gilman, Mr. Gejdenson, Mr. Hamilton, Mr. 
   Bereuter, Mr. Archer, Mr. Baldacci, Mr. Bentsen, Mr. Berman, Mr. 
Blumenauer, Mr. Boehner, Mr. Bryant, Mr. Callahan, Mr. Christensen, Mr. 
Deutsch, Mr. Dreier, Mr. English of Pennsylvania, Mr. Ewing, Mr. Fazio 
 of California, Mr. Filner, Mr. Hastert, Mr. Hastings of Florida, Mr. 
  Jefferson, Mrs. Kennelly of Connecticut, Mr. Kolbe, Mr. LaHood, Mr. 
   Lantos, Mr. Livingston, Mr. Matsui, Mr. Menendez, Mr. Rangel, Mr. 
   Rothman, Mr. Sherman, Mr. Skimkus, and Mr. Torres) introduced the 
 following bill; which was referred to the Committee on International 
                               Relations

_______________________________________________________________________

                                 A BILL


 
  To reauthorize the Overseas Private Investment Corporation, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Jobs and Exports Renewal Act of 
1997''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) since it began operations in 1971, the Overseas Private 
        Investment Corporation (hereinafter in this Act referred to as 
        ``OPIC'') has mobilized private sector resources to assist 
        developing countries and emerging democracies in the transition 
        from nonmarket to market economies;
            (2) in an era of declining federal budgetary resources, 
        OPIC has consistently demonstrated an ability to operate on a 
        self-sustaining basis to support United States companies and 
        promote economic reform in emerging economies in Africa, the 
        newly independent states of the former Soviet Union, Latin 
        America, and the Caribbean;
            (3) OPIC has played an important role in reinforcing United 
        States foreign policy goals and in strengthening the United 
        States economy by creating jobs and promoting exports;
            (4) over the past 25 years, projects supported by OPIC have 
        generated over $52,000,000,000 in United States exports and 
        created more than 225,000 United States jobs;
            (5) OPIC has been run on a sound financial basis with 
        reserves totaling approximately $2,700,000,000 and with 
        earnings reaching a record $209,000,000 in 1996;
            (6) OPIC has maintained a claims recovery rate of 98 
        percent, settling 258 insurance claims for $519,000,000 and 
        recovering all but $11,000,000;
            (7) all 26 members of the Organization of Economic 
        Cooperation and Development (OECD) have organizations similar 
        to OPIC; and
            (8) OPIC programs have served to rectify market failures, 
        including limited market information in developing countries 
        and underdeveloped capital markets, by insuring United States 
        firms against economic and market uncertainties.

SEC. 3. POLICY RECOMMENDATIONS.

    The Congress makes the following declarations:
            (1) OPIC should set its fees at levels sufficient to cover 
        all operating costs, repay any subsidy appropriations, and set 
        aside adequate reserves against future losses.
            (2) OPIC should maintain a conservative ratio of reserves 
        to contingent liabilities and limit its obligations in any one 
        country in its worldwide finance or insurance portfolio.
            (3) Projects supported by OPIC should not displace 
        commercial finance or insurance offerings and should encourage 
        private sector financing and insurance participation.
            (4) Independent auditors should report annually to the 
        Congress on the level of OPIC's reserves in relation to its 
        liabilities and provide an analysis of the trends in the levels 
        of reserves and liabilities and the composition of its 
        insurance and finance portfolios.
            (5) It is appropriate that the President designate an 
        Inspector General to have jurisdiction over OPIC.
            (6) The Secretary of State should provide guidance to OPIC 
        on any applicable human rights standards governing the 
        provision of OPIC assistance.
            (7) OPIC should--
                    (A) ensure that its activities are conducted in a 
                way that ensures protection of the environment and 
                natural resources consistent with its obligations under 
                relevant statutes and Executive orders; and
                    (B) develop transparency and public participation 
                guidelines as part of its policies to implement 
                obligations relating to protection of the environment 
                and natural resources, including conducting 
                environmental assessments, and to ensure that adequate 
                information is provided to the public and to the 
                Congress on the implementation of these obligations.
            (8) The President should--
                    (A) initiate discussions with other countries 
                providing financing, insurance, or reinsurance programs 
                similar or equivalent to those offered by OPIC with the 
                goal of concluding an arrangement under the auspices of 
                the Organization for Economic Cooperation and 
                Development that would provide greater transparency, 
                better notification, and maximum common terms for all 
                such financing and insurance programs; and
                    (B) report annually on the progress made toward 
                achieving such an arrangement.

SEC. 4. ISSUING AUTHORITY.

    Section 235(a)(3) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2195(a)(3)) is amended by striking ``1997'' and inserting ``1999''.

SEC. 5. CEILING ON INVESTMENT INSURANCE.

    Section 235(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2195(a)) is amended--
            (1) by striking paragraph (1) and all that follows through 
        the end of subparagraph (A) of paragraph (2) and inserting the 
        following:
            ``(1) Maximum contingent liability.--The maximum contingent 
        liability outstanding at any one time pursuant to insurance 
        issued under section 234(a) and financing issued under 
        subsections (b) and (c) of section 234 shall not exceed 
        $29,000,000,000 in the aggregate.''; and
            (2) by striking ``(B) Subject'' and inserting ``(2) Subsidy 
        cost.--Subject''.

SEC. 6. LIMITATIONS ON AMOUNTS OBLIGATED FOR PROJECTS.

    Section 234 of the Foreign Assistance Act of 1961 (22 U.S.C. 2194) 
is amended by adding at the end the following:
    ``(h) Limitations on Amounts Obligated for Projects.--No loan, 
financial guarantee, or insurance commitment in an amount exceeding 
$200,000,000 approved by the Corporation should be effective unless in 
each case the Corporation has submitted to the Congress, with respect 
to such loan, financial guarantee, or insurance commitment, a detailed 
statement describing and explaining the transaction, at least 35 
calendar days before the date on which the loan, financial guarantee, 
or insurance commitment becomes effective.''.

SEC. 7. EXPORT PROMOTION COMMISSION.

    (a) Purpose.--It is the purpose of this section to establish for a 
1-year period a Commission on Foreign Export and Investment Promotion 
to assess the impact on United States economic and foreign policy 
interests of Federal Government agencies and programs which promote 
foreign export and investment opportunities for United States business 
concerns.
    (b) Composition of the Commission.--
            (1) Establishment.--To carry out the purposes of this 
        section, there is established a Commission on Foreign Export 
        and Investment Promotion (in this section referred to as the 
        ``Commission'').
            (2) Composition.--The Commission shall be composed of 12 
        members, as follows:
                    (A) Four members shall be appointed by the 
                President, of whom two shall be appointed from the 
                executive branch of the Government and two shall be 
                appointed from private life.
                    (B) Two members shall be appointed by the majority 
                leader of the Senate, of whom one shall be a Member of 
                the Senate and one shall be appointed from private 
                life.
                    (C) Two members shall be appointed by the minority 
                leader of the Senate, of whom one shall be a Member of 
                the Senate and one shall be appointed from private 
                life.
                    (D) Two members shall be appointed by the Speaker 
                of the House of Representative, of whom one shall be a 
                Member of the House and one shall be appointed from 
                private life.
                    (E) Two members shall be appointed by the minority 
                leader of the House of Representatives, of whom one 
                shall be a member of the House and one shall be 
                appointed from private life.
            (3) Chairperson.--The Commission shall elect a chairperson 
        from among its members.
            (4) Quorum; vacancies.--After its initial meeting, the 
        Commission shall meet upon the call of the chairperson or a 
        majority of its members. Seven members of the Commission shall 
        constitute a quorum. Any vacancy in the Commission shall not 
        affect its powers but shall be filled in the manner in which 
        the original appointment was made.
            (5) Appointment of members; initial meeting.--
                    (A) It is the sense of the Congress that members of 
                the Commission should be appointed not later than 60 
                days after the date of the enactment of this Act.
                    (B) If at the end of the 60-day period described in 
                subparagraph (A) seven or more members of the 
                Commission have been appointed, those members who have 
                been appointed may meet and select a chairperson who 
                thereafter shall have authority to begin the operations 
                of the Commission, including the hiring of staff.
    (c) Functions of the Commission.--The functions of the Commission 
shall be--
            (1) to conduct an investigation of the impact on United 
        States economic and foreign policy interests of the programs of 
        the International Trade Administration of the Department of 
        Commerce, the Export-Import Bank of the United States, the 
        Overseas Private Investment Corporation, the Trade and 
        Development Agency, and any other Federal Government agencies 
        and programs designed to promote foreign export and investment 
        opportunities for United States business concerns; and
            (2) to submit to the Congress and the President a report 
        containing such recommendations concerning the operations and 
        structure of the agencies and programs described in paragraph 
(1) as the Commission shall determine on the basis of its 
investigation, including proposing new rules, regulations, procedures, 
or legislation.
    (d) Scope of Commission's Work.--In carrying out the investigation 
required under subsection (c)(1), the Commission shall consider, but 
not be limited to, the following matters relating to the programs and 
agencies listed in that subsection:
            (1) The impact of those programs and agencies on United 
        States foreign policy and national security.
            (2) The impact of those programs and agencies on United 
        States economic interests, including employment, the balance of 
        trade, and United States trade negotiating objectives.
            (3) The scope and risks of any liabilities incurred by the 
        United States Government as a result of the operation of those 
        programs.
            (4) The level of any fees charged by those programs and 
        agencies for the services they provide, and any alternative 
        funding mechanisms.
            (5) The export and investment promotion activities of other 
        major industrial nations, and how any such activities compare 
        to the United States programs and activities investigated under 
        subsection (c)(1).
    (e) Powers of the Commission.--
            (1) In general.--(A) The Commission or, on the 
        authorization of the Commission, any subcommittee or member 
        thereof, may, for the purpose of carrying out the provisions of 
        this section--
                    (i) hold such hearings and sit and act at such 
                times and places, take such testimony, receive such 
                evidence, administer such oaths, and
                    (ii) require, by subpoena or otherwise, the 
                attendance and testimony of such witnesses and the 
                production of such books, records, correspondence, 
                memoranda, papers, and documents,
        as the Commission or such designated subcommittee or designated 
        member may deem advisable.
            (B) Subpoenas issued under subparagraph (A)(ii) may be 
        issued under the signature of the chairperson of the 
        Commission, the chairperson of any designated subcommittee, or 
        any designated member, and may be served by any person 
        designated by such chairperson, subcommittee chairperson, or 
        member. The provisions of sections 102 through 104 of the 
        Revised Statutes of the United States (2 U.S.C. 192 through 
        194) shall apply in the case of any failure of any witness to 
        comply with any subpoena or to testify when summoned under the 
        authority of this section.
            (2) Contracting.--The Commission may, to such extent and in 
        such amounts as are provided in appropriation Acts, enter into 
        contracts to enable the Commission to discharge its duties 
        under this section.
            (3) Information from federal agencies.--The Commission is 
        authorized to secure directly from any executive department, 
        bureau, agency, board, commission, office, independent 
        establishment, or instrumentality of the Government, 
        information, suggestions, estimates, and statistics for the 
        purposes of this section. Each such department, bureau, agency, 
        board, commission, office, establishment, or instrumentality 
        shall, to the extent authorized by law, furnish such 
        information, suggestions, estimates, and statistics directly to 
        the Commission, upon the request of the chairperson.
            (4) Assistance from federal agencies.--(A) The Trade 
        Promotion Coordinating Committee is authorized to provide to 
        the Commission, on a reimbursable or nonreimbursable basis, 
        administrative services, funds, facilities, staff, and other 
support services for the performance of the Commission's functions.
            (B) The Administrator of General Services shall provide to 
        the Commission, on a reimbursable basis, such administrative 
        support services as the Commission may request.
            (C) In addition to the assistance set forth in 
        subparagraphs (A) and (B), departments and agencies of the 
        United States are authorized to provide to the Commission such 
        services, funds, facilities, staff, and other support services 
        as they may deem advisable and as may be authorized by law.
            (5) Gifts.--The Commission may accept, use, and dispose of 
        gifts or donations of services or property.
            (6) Postal services.--The Commission may use the United 
        States mails in the same manner and under the same conditions 
        as departments and agencies of the United States.
    (f) Staff of the Commission.--
            (1) In general.--The chairperson, in accordance with rules 
        agreed upon by the Commission, may appoint and fix the 
        compensation of a staff director and such other personnel as 
        may be necessary to enable the Commission to carry out its 
        functions, without regard to the provisions of title 5, United 
        States Code, governing appointments in the competitive service, 
        and without regard to the provisions of chapter 51, and 
        subchapter III of chapter 53 of such title relating to 
        classification and General Schedule pay rates, except that an 
        individual so appointed may not receive pay in excess of the 
        annual rate of pay payable for level V of the Executive 
        Schedule under section 5316 of title 5, United States Code. Any 
        Federal Government employee may be detailed to the Commission 
        without reimbursement from the Commission, and such detailee 
        shall retain the rights, status, and privileges of his or her 
        regular employment without interruption.
            (2) Consultant services.--The Commission is authorized to 
        procure the services of experts and consultants in accordance 
        with section 3109 of title 5, United States Code, but at rates 
        not to exceed the daily equivalent of the annual rate of pay 
        payable for level IV of the Executive Schedule under section 
        5315 of title 5, United States Code.
    (g) Compensation and Travel Expenses.--
            (1) Compensation.--(A) Except as provided in subparagraph 
        (B), each member of the Commission may be compensated at the 
        daily equivalent of the annual rate of pay payable for level IV 
        of the Executive Schedule under section 5315 of title 5, United 
        States Code, for each day during which that member is engaged 
        in the actual performance of the duties of the Commission.
            (B) Members of the Commission who are officers or employees 
        of the United States or Members of Congress shall receive no 
        additional pay on account of their service on the Commission.
            (2) Travel expenses.--While away from their homes or 
        regular places of business in the performance of services for 
        the Commission, members of the Commission shall be allowed 
        travel expenses, including per diem in lieu of subsistence, in 
        the same manner as persons employed intermittently in the 
        Government service are allowed expenses under section 5703(b) 
        of title 5, United States Code.
    (h) Security Clearances for Commission Members and Staff.--The 
appropriate executive departments and agencies shall cooperate with the 
Commission in expeditiously providing to the members and staff of the 
Commission appropriate security clearances in a manner consistent with 
existing procedures and requirements, except that no person shall be 
provided with access to classified information pursuant to this 
subsection who would not otherwise qualify for such security clearance.
    (i) Final Report of Commission; Termination.--
            (1) Final report.--Not later than 1 year after the date of 
        the first meeting of the Commission, the Commission shall 
        submit to the Congress its report under subsection (c)(1).
            (2) Termination.--(A) The Commission, and all the 
        authorities of this section, shall terminate on the date which 
        is 60 days after the date on which its final report is required 
        to be transmitted under paragraph (1).
            (B) The Commission may use the 60-day period referred to in 
        subparagraph (A) for the purpose of concluding its activities, 
        including providing testimony to committees of Congress 
        concerning its final report and disseminating that report.

SEC. 8. CREATION OF INSPECTOR GENERAL FOR OPIC AND TRADE AND 
              DEVELOPMENT AGENCY.

    (a) Inspector General.--Section 8G(a)(2) of the Inspector General 
Act of 1978 (5 U.S.C. App.) is amended by inserting ``the Overseas 
Private Investment Corporation,'' after ``the National Science 
Foundation,''.
    (b) Establishment of Office.--There shall be established and 
maintained in OPIC an Office of Inspector General by no later than 90 
days after the date of the enactment of this Act.
    (c) Responsibility Over Trade and Development Agency.--The 
Inspector General of OPIC shall carry out the responsibilities and 
duties of an Inspector General under the Inspector General Act of 1978 
with respect to the Trade and Devlopment Agency. The exercise of 
responsibilities and duties under the preceding sentence shall, for 
purposes of subsection (e), be a transfer of functions to the Inspector 
General of OPIC, and to the Office of Inspector General of OPIC, 
pursuant to this section.
    (d) Conforming Amendment.--Section 8B of the Inspector General Act 
of 1978 is amended by adding at the end the following: ``Effective 90 
days after the date of the enactment of the Jobs and Exports Renewal 
Act of 1997, the authority of the Inspector General of the Agency for 
International Development over the Overseas Private Investment 
Corporation and the Trade and Development Agency shall terminate, 
except for responsibilities under this section regarding security 
activities.''.
    (e) Savings Provisions.--
            (1) Transfers.--Any proceedings or other matters relating 
        to OPIC or the Trade and Development Agency that are pending in 
        the Office of Inspector General of the Agency for International 
        Development 90 days after the date of the enactment of this Act 
        shall be transferred to the Office of the Inspector General of 
        OPIC.
            (2) Continuity of legal force and effect.--All orders, 
        determinations, rules, regulations, permits, grants, contracts, 
        certificates, licenses, and privileges--
                    (A) which have been issued, made, granted, or 
                allowed to become effective by the President, any 
                Federal department or agency or official thereof, or by 
                a court of competent jurisdiction, in the performance 
                of functions which are transferred pursuant to this 
                section to the Office of Inspector General of OPIC, and
                    (B) which are in effect at the time this Act takes 
                effect,
        shall continue in effect according to their terms until 
        modified, terminated, superseded, set aside, or revoked in 
        accordance with the law by the President, another authorized 
        official, a court of competent jurisdiction, or by operation of 
        law.
            (3) No effect on judicial proceedings.--Except as provided 
        in paragraph (5)--
                    (A) the provisions of this section shall not affect 
                suits commenced before the end of the 90-day period 
                described in subsection (b), and
                    (B) in all such suits, proceedings shall be had, 
                appeals taken, and judgments rendered in the same 
                manner and effect as if this section had not been 
                enacted.
            (4) Nonabatement of proceedings.--No suit, action, or other 
        proceeding commenced by or against the Inspector General of the 
        Agency for International Development in his or her official 
        capacity, with respect to functions which are transferred 
        pursuant to this section, shall abate by reason of the 
        enactment of this section. No cause of action by or against the 
        Inspector General of the Agency for International Development, 
        with respect to functions which are transferred pursuant to 
        this section, or by or against any officer thereof in his or 
        her official capacity shall abate by reason of the enactment of 
        this section.
            (5) Continuation of proceedings with substitution of 
        parties.--If, before the end of the 90-day period described in 
        subsection (b), the Inspector General of the Agency for 
        International Development, in his or her official capacity, is 
        a party to a suit with respect to any function transferred 
pursuant to this section to the Inspector General of OPIC, then at the 
end of that 90-day period such suit shall be continued with the 
Inspector General of OPIC substituted or added as a party.
    (e) Reference.--With respect to any function transferred pursuant 
to this section and exercised after the end of the 90-day period 
described in subsection (b), reference in any other Federal law to the 
Office of Inspector General of the Agency for International Development 
or any officer thereof with respect to any function so transferred 
shall be deemed to refer to the Office of Inspector General or OPIC or 
officer thereof.

SEC. 9. BOARD OF DIRECTORS.

    Section 233(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2193(b)) is amended--
            (1) by striking the second and third sentences;
            (2) in the fourth sentence by striking ``(other than the 
        President of the Corporation, appointed pursuant to subsection 
        (c) who shall serve as a Director, ex officio)'';
            (3) in the second undesignated paragraph--
                    (A) by inserting ``the President of the 
                Corporation, the Administrator of the Agency for 
                International Development, the United States Trade 
                Representative, and'' after ``including''; and
                    (B) by adding at the end the following: ``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.''; and
            (4) by inserting after the second undesignated paragraph 
        the following:
    ``There shall be 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.''.

SEC. 10. STRATEGIC EXPORT PLAN.

    Section 2312(c) of the Export Enhancement Act of 1988 (15 U.S.C. 
4727) is amended--
            (1) by striking ``and'' at the end of paragraph (5);
            (2) by striking the period at the end of paragraph (6) and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(7) identifying means for providing more coordinated and 
        comprehensive export promotion services to, and on behalf of, 
        small and medium-sized businesses; and
            ``(8) establish a set of priorities to promote United 
        States exports to, and free market reforms in, the Middle East, 
        Africa, Latin America, and other emerging markets, that are 
        designed to stimulate job growth both in the United States and 
        those regions and emerging markets.''.

SEC. 11. IMPLEMENTATION OF PRIMARY OBJECTIVES.

    The Trade Promotion Coordinating Committee shall--
            (1) identify the areas of overlap and duplication among 
        Federal export promotion activities and report on the actions 
        taken or efforts currently underway to eliminate such overlap 
        and duplication;
            (2) report on actions taken or efforts currently underway 
        to promote better coordination between State, Federal, and 
        private sector export promotion activities, including 
        collocation, cost sharing between Federal, State, and private 
        sector export promotion programs, and sharing of market 
        research data; and
            (3) by not later than September 30, 1998, include the 
        matters addressed in paragraphs (1) and (2) in the annual 
        report required to be submitted under section 2312(f) of the 
        Export Enhancement Act of 1988 (15 U.S.C. 4727(f)).

SEC. 12. TECHNICAL AMENDMENT.

    Section 234 of the Foreign Assistance Act of 1961 (22 U.S.C. 2194) 
is amended--
            (1) by redesignating the subsection (c) entitled ``Creation 
        of Fund for Acquisition of Equity'' as paragraph (5) under 
        subsection (g) of section 234;
            (2) by aligning the text with the text of paragraph (4) of 
        subsection (g); and
            (3) by amending the heading to read as follows:
            ``(5) Creation of fund for acquisition of equity.--''.
                                 <all>