[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3938 Placed on Calendar Senate (PCS)]
Calendar No. 639
109th CONGRESS
2d Session
S. 3938
To reauthorize the Export-Import Bank of the United States.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 26, 2006
Mr. Crapo, from the Committee on Banking, Housing, and Urban Affairs,
reported the following original bill; which was read twice and placed
on the calendar
_______________________________________________________________________
A BILL
To reauthorize the Export-Import Bank of the United States.
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 ``Export-Import Bank Reauthorization
Act of 2006''.
SEC. 2. EXTENSION OF AUTHORITY.
Section 7 of the Export-Import Bank Act of 1945 (12 U.S.C. 635f) is
amended by striking ``2006'' and inserting ``2011''.
SEC. 3. SUB-SAHARAN AFRICA ADVISORY COMMITTEE.
Section 2(b)(9)(B)(iii) of the Export-Import Bank Act of 1945 (12
U.S.C. 635(b)(9)(B)(iii)) is amended by striking ``2006'' and inserting
``2011''.
SEC. 4. EXTENSION OF AUTHORITY TO PROVIDE FINANCING FOR THE EXPORT OF
NONLETHAL DEFENSE ARTICLES OR SERVICES THE PRIMARY END
USE OF WHICH WILL BE FOR CIVILIAN PURPOSES.
Section 1(c) of Public Law 103-428 (12 U.S.C. 635 note; 108 Stat.
4376) is amended by striking ``2001'' and inserting ``2011''.
SEC. 5. DESIGNATION OF SENSITIVE COMMERCIAL SECTORS AND PRODUCTS.
Section 2(e) of the Export-Import Bank Act of 1945 (12 U.S.C.
635(e)) is amended by adding at the end the following new paragraph:
``(5) Designation of sensitive commercial sectors and
products.--Not later than 120 days after the date of the
enactment of this Act, the Export-Import Bank of the United
States shall submit a list to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives, which
designates sensitive commercial sectors and products with
respect to which the provision of financing support by the Bank
is deemed unlikely by the President of the Bank due to the
significant potential for a determination that such financing
support would result in an adverse economic impact on the
United States. The President of the Bank shall review on an
annual basis thereafter the list of sensitive commercial
sectors and products and the Bank shall submit an updated list
to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of
Representatives of such sectors and products.''.
SEC. 6. INCREASING EXPORTS BY SMALL BUSINESS.
(a) In General.--Section 3 of the Export-Import Bank Act of 1945
(12 U.S.C. 635a) is amended by adding at the end the following:
``(f) Small Business Division.--
``(1) Establishment.--There is established a Small Business
Division (in this subsection referred to as the `Division')
within the Bank in order to--
``(A) carry out the provisions of subparagraphs (E)
and (I) of section 2(b)(1) relating to outreach,
feedback, product improvement, and transaction advocacy
for small business concerns;
``(B) advise and seek feedback from small business
concerns on the opportunities and benefits for small
business concerns in the financing products offered by
the Bank, with particular emphasis on conducting
outreach, enhancing the tailoring of products to small
business needs and increasing loans to small business
concerns;
``(C) maintain liaison with the Small Business
Administration and other departments and agencies in
matters affecting small business concerns; and
``(D) provide oversight of the development,
implementation, and operation of technology
improvements to strengthen small business outreach,
including the technology improvement required by
section 2(b)(1)(E)(x).
``(2) Management.--The President of the Bank shall appoint
an officer, who shall rank not lower than senior vice president
and whose sole executive function shall be to manage the
Division. The officer shall--
``(A) have substantial recent experience in
financing exports by small business concerns; and
``(B) advise the Board, particularly the director
appointed under section 3(c)(8)(B) to represent the
interests of small business, on matters of interest to,
and concern for, small business.
``(3) Staff.--
``(A) Dedicated personnel.--The President of the
Bank shall ensure that each operating division within
the Bank has staff that specializes in processing
transactions that primarily benefit small business
concerns.
``(B) Responsibilities.--The small business
specialists shall be involved in all aspects of
processing applications for loans, guarantees, and
insurance to support exports by small business
concerns, including the approval or disapproval, or
staff recommendations of approval or disapproval, as
applicable, of such applications. In carrying out these
responsibilities, the small business specialists shall
consider the unique business requirements of small
businesses and shall develop exporter performance
criteria tailored to small business exporters.
``(C) Approval authority.--In an effort to maximize
the speed and efficiency with which the Bank processes
transactions primarily benefitting small business
concerns, the small business specialists shall be
authorized to approve applications for working capital
loans and guarantees, and insurance in accordance with
policies and procedures established by the Board.
``(D) Identification.--The Bank shall prominently
identify the small business specialists on its website
and in promotional material.
``(E) Employee evaluations.--The evaluation of
staff designated by the President of the Bank under
subparagraph (A), including annual reviews of
performance of duties related to transactions in
support of exports by small business concerns, and any
resulting recommendations for salary adjustments,
promotions, and other personnel actions, shall address
the criteria established pursuant to subsection
(g)(2)(B)(iii) and shall be conducted by the manager of
the relevant operating division following consultation
with the senior vice president of the Division.
``(F) Staff recommendations.--Staff recommendations
of denial or withdrawal for medium-term applications,
exporter held multi-buyer policies, single buyer
policies, and working capital applications processed by
the Bank shall be transmitted to the Senior Vice
President of the Division not later than 2 business
days before a final decision.
``(4) Rule of interpretation.--Nothing in this Act shall be
construed to prevent the delegation to the Division of any
authority necessary to carry out subparagraphs (E) and (I) of
section 2(b)(1).
``(g) Small Business Committee.--
``(1) Establishment.--There is established a management
committee to be known as the `Small Business Committee'.
``(2) Purpose and duties.--
``(A) Purpose.--The purpose of the Small Business
Committee shall be to coordinate the Bank's initiatives
and policies with respect to small business concerns,
including the timely processing and underwriting of
transactions involving direct exports by small business
concerns, and the development and coordination of
efforts to implement new or enhanced Bank products and
services pertaining to small business concerns.
``(B) Duties.--The duties of the Small Business
Committee shall be determined by the President of the
Bank and shall include the following:
``(i) Assisting in the development of the
Bank's small business strategic plans,
including the Bank's plans for carrying out
section 2(b)(1)(E) (v) and (x), and measuring
and reporting in writing to the President of
the Bank, at least once a year, on the Bank's
progress in achieving the goals set forth in
the plans.
``(ii) Evaluating and reporting in writing
to the President of the Bank, at least once a
year, with respect to--
``(I) the performance of each
operating division of the Bank in
serving small business concerns;
``(II) the impact of processing and
underwriting standards on transactions
involving direct exports by small
business concerns; and
``(III) the adequacy of the
staffing and resources of the Small
Business Division.
``(iii) Establishing criteria for
evaluating the performance of staff designated
by the President of the Bank under section
3(f)(3)(A).
``(iv) Coordinating with other United
States Government departments and agencies the
provision of services to small business
concerns.
``(3) Composition.--
``(A) Chairperson.--The Chairperson of the Small
Business Committee shall be the senior vice president
of the Small Business Division. The Chairperson shall
have the authority to call meetings of the Small
Business Committee, set the agenda for Committee
meetings, and request policy recommendations from the
Committee's members.
``(B) Other members.--Except as otherwise provided
in this subsection, the President of the Bank shall
determine the composition of the Small Business
Committee, and shall appoint or remove the members of
the Small Business Committee. In making such
appointments, the President of the Bank shall ensure
that the Small Business Committee is comprised of--
``(i) the senior managing officers
responsible for underwriting and processing
transactions; and
``(ii) other officers and employees of the
Bank with responsibility for outreach to small
business concerns and underwriting and
processing transactions that involve small
business concerns.
``(4) Reporting.--The Chairperson shall provide to the
President of the Bank minutes of each meeting of the Small
Business Committee, including any recommendations by the
Committee or its individual members.''.
(b) Enhance Delegated Loan Authority for Medium Term
Transactions.--
(1) In general.--The Export-Import Bank of the United
States shall seek to expand the exercise of authority under
section 2(b)(1)(E)(vii) of the Export-Import Bank Act of 1945
(6 U.S.C. 635(b)(1)(E)(vii)) with respect to medium term
transactions for small business concerns.
(2) Conforming amendment.--Section 2(b)(1)(E)(vii)(III) of
the Export-Import Bank Act of 1945 (12 U.S.C.
635(b)(1)(E)(vii)(III)) is amended by inserting ``or other
financing institutions or entities'' after ``consortia''.
(3) Deadline.--Not later than 180 days after the date of
the enactment of this Act, the Export-Import Bank of the United
States shall make available lines of credit and guarantees to
carry out section 2(b)(1)(E)(vii) of the Export-Import Bank Act
of 1945 pursuant to policies and procedures established by the
Board of Directors of the Export-Import Bank of the United
States.
SEC. 7. ANTI-CIRCUMVENTION.
Section 2(e) of the Export-Import Bank Act of 1945 (12 U.S.C.
635(e)) is amended--
(1) by inserting after paragraph (1), the following flush
paragraph:
``In making the determination under subparagraph (B), the Bank
shall determine whether the facility that would benefit from
the extension of a credit or guarantee is reasonably likely to
produce commodities in addition to or other than the commodity
specified in the application and whether the production of the
additional commodities may cause substantial injury to United
States producers of the same, or a similar or competing,
commodity.'';
(2) in paragraph (2), by adding at the end the following:
``(E) Anti-circumvention.--The Bank shall not
provide a loan or guarantee if the Bank determines that
providing the loan or guarantee will facilitate
circumvention of a trade law order or determination
referred to in subparagraph (A).''; and
(3) by adding at the end the following:
``(5) Financial threshold determinations.--For purposes of
determining whether a proposed transaction exceeds a financial
threshold under this subsection or under the procedures or
rules of the Bank, the Bank shall aggregate the dollar amount
of the proposed transaction and the dollar amounts of all loans
and guarantees, approved by the Bank in the preceding 24-month
period, that involved the same foreign entity and substantially
the same product to be produced.''.
SEC. 8. TRANSPARENCY.
(a) In General.--Section 2(e) of the Export-Import Bank Act of 1945
(12 U.S.C. 635(e)), as amended by section 7 of this Act, is amended by
adding at the end the following:
``(6) Procedures to reduce adverse effects of loans and
guarantees on industries and employment in united states.--
``(A) Consideration of economic effects of proposed
transactions.--If, in making a determination under this
paragraph with respect to a loan or guarantee, the Bank
conducts a detailed economic impact analysis or similar
study, the analysis or study, as the case may be, shall
include consideration of--
``(i) the factors set forth in
subparagraphs (A) and (B) of paragraph (1); and
``(ii) the views of the public and
interested parties.
``(B) Notice and comment requirements.--
``(i) In general.--If, in making a
determination under this subsection with
respect to a loan or guarantee, the Bank
intends to conduct a detailed economic impact
analysis or similar study, the Bank shall
publish in the Federal Register a notice of the
intent, and provide a period of not less than
14 days (which, on request by any affected
party, shall be extended to a period of not
more than 30 days) for the submission to the
Bank of comments on the economic effects of the
provision of the loan or guarantee, including
comments on the factors set forth in
subparagraphs (A) and (B) of paragraph (1). In
addition, the Bank shall seek comments on the
effects from the Department of Commerce, the
International Trade Commission, the Office of
Management and Budget, the Committee on
Banking, Housing, and Urban Affairs of the
Senate, and the Committee on Financial Services
of the House of Representatives.
``(ii) Content of notice.--The notice shall
include appropriate, nonproprietary information
about--
``(I) the country to which the
goods involved in the transaction will
be shipped;
``(II) the type of goods being
exported;
``(III) the amount of the loan or
guarantee involved;
``(IV) the goods that would be
produced as a result of the provision
of the loan or guarantee;
``(V) the amount of increased
production that will result from the
transaction;
``(VI) the potential sales market
for the resulting goods; and
``(VII) the value of the
transaction.
``(iii) Procedure regarding materially
changed applications.--
``(I) In general.--If a material
change is made to an application for a
loan or guarantee from the Bank after a
notice with respect to the intent
described in clause (i) is published
under this subparagraph, the Bank shall
publish in the Federal Register a
revised notice of the intent, and shall
provide for a comment period, as
provided in clauses (i) and (ii).
``(II) Material change defined.--In
subclause (I), the term `material
change', with respect to an
application, includes--
``(aa) a change of at least
25 percent in the amount of a
loan or guarantee requested in
the application; and
``(bb) a change in the
principal product to be
produced as a result of any
transaction that would be
facilitated by the provision of
the loan or guarantee.
``(C) Requirement to address views of adversely
affected persons.--Before taking final action on an
application for a loan or guarantee to which this
section applies, the staff of the Bank shall provide in
writing to the Board of Directors the views of any
person who submitted comments pursuant to subparagraph
(B).
``(D) Publication of conclusions.--Within 30 days
after a party affected by a final decision of the Board
of Directors with respect to a loan or guarantee makes
a written request therefor, the Bank shall provide to
the affected party a non-confidential summary of the
facts found and conclusions reached in any detailed
economic impact analysis or similar study conducted
pursuant to subparagraph (B) with respect to the loan
or guarantee, that were submitted to the Board of
Directors.
``(E) Rule of interpretation.--This paragraph shall
not be construed to make subchapter II of chapter 5 of
title 5, United States Code, applicable to the Bank.
``(F) Regulations.--The Bank shall implement such
regulations and procedures as may be appropriate to
carry out this paragraph.''.
(b) Conforming Amendment.--Section 2(e)(2)(C) of such Act (12
U.S.C. 635(e)(2)(C)) is amended by inserting ``of not less than 14 days
(which, on request of any affected party, shall be extended to a period
of not more than 30 days)'' after ``comment period''.
SEC. 9. AGGREGATE LOAN, GUARANTEE, AND INSURANCE AUTHORITY.
Subparagraph (E) of section 6(a)(2) of the Export-Import Bank Act
of 1945 (12 U.S.C. 635e(a)(2)) is amended to read as follows:
``(E) during fiscal year 2006, and each fiscal year
thereafter through fiscal 2011.''.
SEC. 10. TIED AID CREDIT PROGRAM.
Section 10(b)(5)(B)(ii) of the Export-Import Bank Act of 1945 (12
U.S.C. 635i-3(b)(5)(B)(ii)) is amended to read as follows:
``(ii) Process.--In handling individual
applications involving the use or potential use
of the Tied Aid Credit Fund the following
process shall exclusively apply pursuant to
subparagraph (A):
``(I) The Bank shall process an
application for tied aid in accordance
with the principles and standards
developed pursuant to subparagraph (A)
and clause (i) of this subparagraph.
``(II) Twenty days prior to the
scheduled meeting of the Board of
Directors at which an application will
be considered (unless the Bank
determines that an earlier discussion
is appropriate based on the facts of a
particular financing), the Bank shall
brief the Secretary on the application
and deliver to the Secretary such
documents, information, or data as may
reasonably be necessary to permit the
Secretary to review the application to
determine if the application complies
with the principles and standards
developed pursuant to subparagraph (A)
and clause (i) of subparagraph (B).
``(III) The Secretary may request a
single postponement of the Board of
Directors' consideration of the
application for up to 14 days to allow
the Secretary to submit to the Board of
Directors a memorandum objecting to the
application.
``(IV) Case-by case decisions on
whether to approve the use of the Tied
Aid Credit Fund shall be made by the
Board of Directors, except that the
approval of the Board of Directors (or
a commitment letter based on that
approval) shall not become final
(except as provided in subclause (V)),
if the Secretary indicates to the
President of the Bank in writing the
Secretary's intention to appeal the
decision of the Board of Directors to
the President of the United States and
makes the appeal in writing not later
than 20 days after the meeting at which
the Board of Directors considered the
application.
``(V) The Bank shall not grant
final approval of an application for
any tied aid credit (or a commitment
letter based on that approval) if the
President of the United States, after
consulting with the President of the
Bank and the Secretary, determines
within 30 days of an appeal by the
Secretary under subclause (IV) that the
extension of the tied aid credit would
materially impede achieving the
purposes described in subsection
(a)(6). If no such Presidential
determination is made during the 30-day
period, the approval by the Bank of the
application (or related commitment
letter) that was the subject of such
appeal shall become final.''.
SEC. 11. PROHIBITION ON ASSISTANCE TO DEVELOP OR PROMOTE CERTAIN
RAILWAY CONNECTIONS AND RAILWAY-RELATED CONNECTIONS.
Section 2(b) of the Export-Import Act of 1945 (12 U.S.C. 635(b)) is
amended by adding at the end the following new paragraph:
``(13) Prohibition on Assistance to Develop or Promote Certain
Railway Connections and Railway-Related Connections.--The Bank shall
not guarantee, insure, or extend (or participate in the extension of)
credit in connection with the export of any good or service relating to
the development or promotion of any railway connection or railway-
related connection that does not traverse or connect with Armenia and
does traverse or connect Baku, Azerbaijan, Tbilisi, Georgia, and Kars,
Turkey.''.
Calendar No. 639
109th CONGRESS
2d Session
S. 3938
_______________________________________________________________________
A BILL
To reauthorize the Export-Import Bank of the United States.
_______________________________________________________________________
September 26, 2006
Read twice and placed on the calendar