[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2085 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2085

    To amend the Export-Import Bank Act of 1945 to ensure that the 
   provision of assistance for exports to China is conditioned upon 
                   adherence to responsible conduct.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 26, 1997

  Mr. Evans (for himself, Ms. Pelosi, Mr. Frank of Massachusetts, Mr. 
    Stark, Mr. Sanders, Ms. Kaptur, and Mr. Bonior) introduced the 
  following bill; which was referred to the Committee on Banking and 
                           Financial Services

_______________________________________________________________________

                                 A BILL


 
    To amend the Export-Import Bank Act of 1945 to ensure that the 
   provision of assistance for exports to China is conditioned upon 
                   adherence to responsible conduct.

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

SECTION 1. EXPORT-IMPORT BANK ASSISTANCE FOR EXPORTS TO CHINA 
              CONDITIONED ON ADHERENCE TO CODE OF CONDUCT.

    (a) In General.--Section 2(b) of the Export-Import Bank Act of 1945 
(12 U.S.C. 635(b)) is amended by adding at the end the following:
    ``(f) Assistance for Exports to China Conditioned Upon Adherence to 
Code of Conduct.--
            ``(1) Prohibitions.--
                    ``(A) Pre-assistance condition.--The Bank shall not 
                guarantee, insure, extend credit, or participate in the 
                extension of credit to an entity with respect to the 
                export of any good or service destined for the People's 
                Republic of China unless the Board of Directors 
                determines that the entity has established and is 
                adhering to the code of conduct set forth in paragraph 
                (2).
                    ``(B) Penalty for violation.--The Bank shall 
                withdraw any guarantee, insurance, or credit that the 
                Bank has provided, and shall withdraw from any 
                participation in an extension of credit, to an entity 
                with respect to the export of any good or service 
                destined for the People's Republic of China if the 
                Board of Directors determines that the entity is not 
                adhering to the code of conduct set forth in paragraph 
                (2).
            ``(2) Code of conduct.--An entity shall do all of the 
        following in all of its operations:
                    ``(A) Provide a safe and healthy workplace.
                    ``(B) Ensure fair employment, including by--
                            ``(i) avoiding child and forced labor, and 
                        discrimination based upon race, gender, 
                        national origin, or religious beliefs;
                            ``(ii) respecting freedom of association 
                        and the right to organize and bargain 
                        collectively;
                            ``(iii) paying not less than the minimum 
                        wage required by law or the prevailing industry 
                        wage, whichever is higher; and
                            ``(iv) providing all legally mandated 
                        benefits.
                    ``(C) Obey all applicable environmental laws.
                    ``(D) Comply with United States and local laws 
                promoting good business practices, including laws 
                prohibiting illicit payments and ensuring fair 
                competition.
                    ``(E) Maintain, through leadership at all levels, a 
                corporate culture--
                            ``(i) which respects free expression 
                        consistent with legitimate business concerns, 
                        and does not condone political coercion in the 
                        workplace;
                            ``(ii) which encourages good corporate 
                        citizenship and makes a positive contribution 
                        to the communities in which the entity 
                        operates; and
                            ``(iii) in which ethical conduct is 
                        recognized, valued, and exemplified by all 
                        employees.
                    ``(F) Require similar behavior by partners, 
                suppliers, and subcontractors under terms of contracts.
                    ``(G) Implement and monitor compliance with the 
                subparagraphs (A) through (F) through a program that is 
                designed to prevent and detect noncompliance by any 
                employee or supplier of the entity and that includes--
                            ``(i) standards for ethical conduct of 
                        employees of the entity and of suppliers which 
                        refer to the subparagraphs;
                            ``(ii) procedures for assignment of 
                        appropriately qualified personnel at the 
                        management level to monitor and enforce 
                        compliance;
                            ``(iii) procedures for reporting 
                        noncompliance by employees and suppliers;
                            ``(iv) procedures for selecting qualified 
                        individuals who are not employees of the entity 
                        or of suppliers to monitor compliance, and for 
                        assessing the effectiveness of such compliance 
                        monitoring;
                            ``(v) procedures for disciplinary action in 
                        response to noncompliance;
                            ``(vi) procedures designed to ensure that, 
                        in cases in which noncompliance is detected, 
                        reasonable steps are taken to correct the 
                        noncompliance and prevent similar noncompliance 
                        from occurring; and
                            ``(vii) communication of all standards and 
                        procedures with respect to the code of conduct 
                        to every employee and supplier--
                                    ``(I) by requiring all management 
                                level employees and suppliers to 
                                participate in a training program; or
                                    ``(II) by disseminating information 
                                orally and in writing, through posting 
                                of an explanation of the standards and 
                                procedures in prominent places 
                                sufficient to inform all employees and 
                                suppliers, in the local languages 
                                spoken by employees and managers.
            ``(3) Small business exception.--This subsection shall not 
        apply to an entity that is a small business (within the meaning 
        of the Small Business Act).''.
    (b) Annual Report.--Section 2(b)(1)(A) of such Act (12 U.S.C. 
635(b)(1)(A)) is amended by adding at the end the following: ``The Bank 
shall include in the annual report a description of the actions the 
Bank has taken to comply with subsection (f) during the period covered 
by the report.''.
    (c) Sense of the Congress.--It is the sense of the Congress that 
the Export-Import Bank of the United States and the Clearinghouse on 
Corporate Responsibility that is being developed by the Department of 
Commerce should work together to ensure that businesses are made aware 
of, and have access to, resources and organizations that can assist 
businesses in developing, implementing, and monitoring global codes of 
corporate conduct.
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