[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2798 Referred in Senate (RFS)]

  1st Session
                                H. R. 2798


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 24, 2007

Received; read twice and referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 AN ACT


 
    To reauthorize the programs of 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 ``Overseas Private Investment 
Corporation Reauthorization Act of 2007''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Since its founding in 1971, the Overseas Private 
        Investment Corporation (in this section referred to as 
        ``OPIC'') has helped to mobilize and facilitate private capital 
        by United States investors in developing and emerging market 
        countries in support of United States foreign policy and 
        development goals.
            (2) OPIC assistance should not, in any way, support 
        projects in countries that reject their obligations to support 
        international peace, security, and basic human rights.
            (3) OPIC assistance should not be provided to those who 
        support enemies of the United States.
            (4) OPIC assistance is a privilege and should be granted to 
        persons that, along with their affiliated companies, 
        demonstrate responsible and sustainable business practices, 
        particularly with regard to the environment, international 
        worker rights, and efforts against genocide and nuclear 
        proliferation. Denial of OPIC assistance is not a penalty or 
        sanction.
            (5) Over OPIC's 35-year history, OPIC has supported 
        $177,000,000,000 in operating investments in more than 150 
        developing countries, helping to create more than 800,000 jobs 
        and some $13,000,000,000 in host-government revenues.
            (6) OPIC projects have generated $71,000,000,000 in United 
        States exports and supported more than 271,000 United States 
        jobs.
            (7) Projects assisted by OPIC in fiscal year 2006 are 
        projected to generate $1,000,000,000 in United States exports, 
        support more than 2,700 United States jobs, and have a positive 
        impact on the United States balance of payments.
            (8) In fiscal year 2006, 87 percent of all OPIC-supported 
        projects supported small-and-medium-sized businesses in the 
        United States.
            (9) In an era of limited Federal budgetary resources, OPIC 
        has consistently demonstrated an ability to operate on a self-
        sustaining basis to support United States companies, all at a 
        net cost of zero to the United States taxpayer.
            (10) OPIC has reserves totaling approximately 
        $5,300,000,000 and will make an estimated net budget 
        contribution to the international affairs account of 
        $159,000,000 in fiscal year 2008.

SEC. 3. REAUTHORIZATION OF OPIC PROGRAMS.

    Section 235(a)(2) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2195(a)(2)) is amended by striking ``September 30, 2007'' and inserting 
``September 30, 2011''.

SEC. 4. PREFERENTIAL CONSIDERATION OF CERTAIN INVESTMENT PROJECTS.

    Section 231(f) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2191(f)) is amended to read as follows:
            ``(f) to give preferential consideration to investment 
        projects in less developed countries the governments of which 
        are receptive to private enterprise, domestic and foreign, and 
        to projects in countries the governments of which are willing 
        and able to maintain conditions that enable private enterprise 
        to make its full contribution to the development process;''.

SEC. 5. REQUIREMENTS REGARDING INTERNATIONAL WORKER RIGHTS.

    (a) Country Requirements.--Subsection (a) of section 231A of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2191a(a)) is amended--
            (1) by amending the subsection heading to read as follows: 
        ``International Worker Rights'';
            (2) in paragraph (4), by striking ``(4) In'' and inserting 
        ``(5) Additional determination.--In'' ; and
            (3) by striking paragraphs (1) through (3) and inserting 
        the following:
            ``(1) Limitation on opic activities.--(A) The Corporation 
        may insure, reinsure, guarantee, or finance a project only if 
        the country in which the project is to be undertaken has made 
        or is making significant progress towards the recognition, 
        adoption, and implementation of laws that substantially provide 
        international worker rights, including in any designated zone, 
        or special administrative region or area, in that country.
            ``(B) 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 any actions to obstruct 
        or prevent employees of the foreign enterprise from exercising 
        their international worker rights (as defined in section 238(h) 
        of the Foreign Assistance Act of 1961), and agrees to adhere to 
        the obligations regarding those international worker rights.'
            ``(2) Preference to certain countries.--To the degree 
        possible and consistent with its development objectives, the 
        Corporation shall give preferential consideration to projects 
        in countries that have adopted, maintain, and enforce laws that 
        substantially provide international worker rights.
            ``(3) Use of annual reports on international worker 
        rights.--The Corporation shall, in carrying out paragraph 
        (1)(A), use, among other sources, the reports submitted to the 
        Congress pursuant to section 504 of the Trade Act of 1974. Such 
        other sources include the observations, reports, and 
        recommendations of the International Labor Organization, and 
        other relevant organizations.
            ``(4) Inapplicability to humanitarian activities.--
        Paragraph (1) shall not prohibit the Corporation from providing 
        any insurance, reinsurance, guaranty, financing, or other 
        assistance for the provision of humanitarian assistance in a 
        country.''.
    (b) Board of Directors.--Section 233(b) of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2193(b)) is amended by adding at the end the 
following: ``The selection of the small business, organized labor, and 
cooperative directors should be made, respectively, in consultation 
with relevant representative organizations.''.
    (c) Definitions.--Section 238 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2198) is amended--
            (1) in subsection (f), by striking ``and'' after the 
        semicolon;
            (2) in subsection (g), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(h) the term `international worker rights' means--
                    ``(1) internationally recognized worker rights, as 
                defined in section 507(4) of the Trade Act of 1974 (19 
                U.S.C. 2467(4)); and
                    ``(2) the elimination of discrimination with 
                respect to employment and occupation.''.
    (d) General Provisions and Powers.--Section 239 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2199) is amended--
            (1) in subsection (h), by adding at the end the following: 
        ``In addition, the Corporation should consult with relevant 
        stakeholders in developing such criteria.''; and
            (2) in subsection (i), in the first sentence, by inserting 
        ``, including international worker rights,'' after 
        ``fundamental freedoms''.

SEC. 6. ENVIRONMENTAL ASSESSMENTS.

    Section 231A(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2191a(b)) is amended to read as follows:
    ``(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, 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.''.

SEC. 7. COMMUNITY SUPPORT.

    Section 237 of the Foreign Assistance Act of 1961 (22 U.S.C. 2197) 
is amended by adding at the end the following:
    ``(p) Community Support.--To the maximum extent practicable, the 
Corporation shall require the applicant for a project that is subject 
to section 231A(b) to obtain broad community support for the 
project.''.

SEC. 8. CLIMATE CHANGE MITIGATION ACTION PLAN.

    Title IV of chapter 2 of part I of the Foreign Assistance Act of 
1961 (22 U.S.C. 2291 et seq.) is amended by inserting after section 
234A the following new section:

``SEC. 234B. CLIMATE CHANGE MITIGATION.

    ``(a) Mitigation Action Plan.--The Corporation shall, not later 
than 180 days after the date of the enactment of the Overseas Private 
Investment Corporation Reauthorization Act of 2007, institute a climate 
change mitigation action plan that includes the following:
            ``(1) Clean and efficient energy technology.--
                    ``(A) Increasing assistance.--The Corporation shall 
                establish a goal of substantially increasing its 
                support of projects that use, develop, or otherwise 
                promote the use of clean energy technologies over the 
                4-year period beginning on the date of the enactment of 
                the Overseas Private Investment Corporation 
                Reauthorization Act of 2007.
                    ``(B) Preferential treatment to projects.--The 
                Corporation shall give preferential treatment to the 
                evaluation and awarding of assistance for and provide 
                greater flexibility in supporting projects that use, 
                develop, or otherwise promote the use of clean and 
                efficient energy technologies.
            ``(2) Environmental impact assessments.--
                    ``(A) Greenhouse gas emissions.--The Corporation 
                shall, in making an environmental impact assessment for 
                a project under section 231A(b), take into account the 
                degree to which the project contributes to the emission 
                of greenhouse gases.
                    ``(B) Other duties not affected.--The requirement 
                under subparagraph (A) is in addition to any other 
                requirement, obligation, or duty that the Corporation 
                has.
            ``(3) Report to congressional committees.--The Corporation 
        shall, within 180 days after the date of the enactment of the 
        Overseas Private Investment Corporation Reauthorization Act of 
        2007, submit to the Committee on Foreign Affairs of the House 
        of Representatives and the Committee on Foreign Relations of 
        the Senate a report on the plan developed to carry out 
        paragraph (1)(A). Thereafter, the Corporation shall include in 
        its annual report under section 240A a discussion of such plan 
        and its implementation.
    ``(b) Extraction Investments.--
            ``(1) Prior notification to congressional committees.--The 
        Corporation may not approve any contract of insurance or 
        reinsurance, or any guaranty, or enter into any agreement to 
        provide financing for any project which significantly involves 
        an extractive industry and in which assistance by the 
        Corporation would be valued at $10,000,000 or more (including 
        contingent liability), until at least 30 days after the 
        Corporation notifies the Committee on Foreign Affairs of the 
        House of Representatives and the Committee on Foreign Relations 
        of the Senate of such contract or agreement.
            ``(2) Commitment to eiti principles.--The Corporation may 
        approve a contract of insurance or reinsurance, or any 
        guaranty, or enter into an agreement to provide financing to an 
        eligible investor for a project that significantly involves an 
        extractive industry only if--
                    ``(A) the eligible investor has agreed to implement 
                the Extractive Industries Transparency Initiative 
                principles and criteria, or substantially similar 
                principles and criteria; or
                    ``(B) the host country where the project is to be 
                carried out has committed to the Extractive Industries 
                Transparency Initiative principles and criteria, or 
                substantially similar principles and criteria.
            ``(3) Preference for certain projects.--With respect to all 
        projects that significantly involve an extractive industry, the 
        Corporation, to the degree possible and consistent with its 
        development objectives, shall give preference to a project in 
        which both the eligible investor has agreed to implement the 
        Extractive Industries Transparency Initiative principles and 
        criteria, or substantially similar principles and criteria, and 
        the host country where the project is to be carried out has 
        committed to the Extractive Industries Transparency Initiative 
        principles and criteria, or substantially similar principles 
        and criteria.
            ``(4) Definitions.--In this subsection:
                    ``(A) Extractive industry.--The term `extractive 
                industry' refers to an enterprise engaged in the 
                exploration, development, or extraction of oil and gas 
                reserves, metal ores, gemstones, industrial minerals, 
                or coal.
                    ``(B) Extractive industries transparency initiative 
                principles and criteria.--The term `Extractive 
                Industries Transparency Initiative principles and 
                criteria' means the principles and criteria of the 
                Extractive Industries Transparency Initiative, as set 
                forth in Annex A to the Anti-Corruption Policies and 
                Strategies Handbook of the Corporation, as published in 
                September 2006.
            ``(5) Reporting requirement.--The Corporation shall include 
        in its annual report required under section 240A a description 
        of its activities to carry out this subsection.
    ``(c) Definitions.--In this section:
            ``(1) Clean and efficient energy technology.--The term 
        `clean and efficient energy technology' means an energy supply 
        or end-use technology--
                    ``(A) such as--
                            ``(i) solar technology;
                            ``(ii) wind technology;
                            ``(iii) geothermal technology;
                            ``(iv) hydroelectric technology; and
                            ``(v) carbon capture technology; and
                    ``(B) that, over its life cycle and compared to a 
                similar technology already in commercial use--
                            ``(i) is reliable, affordable, economically 
                        viable, socially acceptable, and compatible 
                        with the needs and norms of the country 
                        involved;
                            ``(ii) results in--
                                    ``(I) reduced emissions of 
                                greenhouse gases; or
                                    ``(II) increased geological 
                                sequestration; and
                            ``(iii) may--
                                    ``(I) substantially lower emissions 
                                of air pollutants; or
                                    ``(II) generate substantially 
                                smaller and less hazardous quantities 
                                of solid or liquid waste.
            ``(2) Greenhouse gas.--The term `greenhouse gas' means--
                    ``(A) carbon dioxide;
                    ``(B) methane;
                    ``(C) nitrous oxide;
                    ``(D) hydrofluorocarbons;
                    ``(E) perfluorocarbons; or
                    ``(F) sulfur hexafluoride.''.

SEC. 9. PROHIBITION ON ASSISTANCE TO DEVELOP OR PROMOTE CERTAIN RAILWAY 
              CONNECTIONS AND RAILWAY-RELATED CONNECTIONS.

    Section 237 of the of the Foreign Assistance Act of 1961 (22 U.S.C. 
2197) is further amended by adding at the end the following:
    ``(q) Prohibition on Assistance for Certain Railway Projects.--The 
Corporation may not provide insurance, reinsurance, a guaranty, 
financing, or other assistance to support the development or promotion 
of any railway connection or railway-related connection that does not 
traverse or connect with Armenia and does connect Azerbaijan and 
Turkey.''.

SEC. 10. INELIGIBILITY OF PERSONS DOING CERTAIN BUSINESS WITH STATE 
              SPONSORS OF TERRORISM.

    (a) In General.--Section 237 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2197) is further amended by adding at the end the following:
    ``(r) Ineligible Projects.--
            ``(1) In general.--A project will not be eligible to 
        receive support provided by the Corporation under this title if 
        either of the following applies:
                    ``(A)(i) An applicant for insurance, reinsurance, 
                financing, or other support for a project provided to 
                the government of a state sponsor of terrorism a loan, 
                or an extension of credit, that remains outstanding.
                    ``(ii) For purposes of this subparagraph, the sale 
                of goods, other than food or medicine, on any terms 
                other than a cash basis shall be considered to be an 
                extension of credit.
                    ``(B) An applicant for insurance, reinsurance, 
                financing, or other support for a project has an 
                investment commitment valued at $20,000,000 or more for 
                the energy sector in a country that is a state sponsor 
                of terrorism.
            ``(2) Definitions.--In this subsection:
                    ``(A) Cash basis.--The term `cash basis' refers to 
                a sale in which the purchaser of goods or services is 
                required to make payment in full within 45 days after 
                receiving the goods or services.
                    ``(B) Energy sector.--The term `energy sector' 
                refers to activities to develop or transport petroleum 
                or natural gas resources.
                    ``(C) Investment commitment.--The term `investment 
                commitment' means any of the following activities if 
                such activity is undertaken pursuant to a commitment, 
                or pursuant to the exercise of rights under a 
                commitment, that was entered into with the government 
                of a state sponsor of terrorism or a nongovernmental 
                entity in a country that is a state sponsor of 
                terrorism:
                            ``(i) The entry into a contract that 
                        includes responsibility for the development of 
                        petroleum resources located in a country that 
                        is a state sponsor of terrorism, or the entry 
                        into a contract providing for the general 
                        supervision and guarantee of another person's 
                        performance of such a contract.
                            ``(ii) The purchase of a share of 
                        ownership, including an equity interest, in 
                        that development.
                            ``(iii) The entry into a contract providing 
                        for the participation in royalties, earnings, 
                        or profits in that development, without regard 
                        to the form of the participation.
                    ``(D) State sponsor of terrorism.--The term `state 
                sponsor of terrorism' means a country the government of 
                which the Secretary of State has determined, for 
                purposes of section 6(j) of the Export Administration 
                Act of 1979, section 620A of the Foreign Assistance Act 
                of 1961, section 40 of the Arms Export Control Act, or 
                any other provision of law, to be a government that has 
                repeatedly provided support for acts of international 
                terrorism.
            ``(3) Certification.--
                    ``(A) By applicants.--A person or entity applying 
                for insurance, reinsurance, a guaranty, financing, or 
                other assistance under this title may not receive such 
                support unless its chief executive officer certifies to 
                the Corporation, under penalty of perjury, that the 
                person or entity and its majority-owned subsidiaries 
                are not engaged in any activity described in 
                subparagraph (A) or (B) of paragraph (1).
                    ``(B) By ultimate parent entities.--In the case of 
                an applicant that is a majority-owned entity of another 
                entity, in addition to the certification under 
                subparagraph (A), the chief executive officer of the 
                ultimate parent entity of the applicant must certify, 
                under penalty of perjury, that it and its majority-
                owned subsidiaries are not engaged in any activity 
                described in subparagraph (A) or (B) of paragraph (1).
                    ``(C) Application to straw man transactions.--In 
                any case in which--
                            ``(i) an applicant for insurance, 
                        reinsurance, financing, or other assistance 
                        under this title is providing goods and 
                        services to a project,
                            ``(ii) more than 50 percent of such goods 
                        and services are acquired from an unaffiliated 
                        entity, and
                            ``(iii) the unaffiliated entity is 
                        receiving $20,000,000 or more, or sums greater 
                        than 50 percent of the amount of the assistance 
                        provided by the Corporation for the project 
                        (including contingent liability), for such 
                        goods or services,
                then the chief executive officer of the unaffiliated 
                entity must make a certification under subparagraph 
                (A), and any ultimate parent entity must make a 
                certification required by subparagraph (B).
                    ``(D) Diligent inquiry.--A certification required 
                by subparagraph (A), (B), or (C) may be made to the 
                best knowledge and belief of the certifying officer if 
                that officer states that he or she has made diligent 
                inquiry into the matter certified.
                    ``(E) Exception.--(i) A chief executive officer of 
                an applicant or other entity may provide a 
                certification required by subparagraph (A), (B), or (C) 
                with respect to the activity of a majority-owned 
                subsidiary or entity notwithstanding activity by such 
                majority-owned subsidiary or entity that would cause a 
                project to be ineligible for support under subparagraph 
                (A) or (B) of paragraph (1) if such activity is carried 
                out under a contract or other obligation of such 
                majority-owned subsidiary or entity that was entered 
                into or incurred before the acquisition of such 
                majority-owned subsidiary or entity by the applicant or 
                ultimate parent entity.
                    ``(ii) Clause (i) shall not apply if the terms of 
                such contract or other obligation are expanded or 
                extended after such acquisition.
                    ``(F) Definition.--For purposes of this paragraph, 
                a person is an ultimate parent of an entity if the 
                person owns directly, or through majority ownership of 
                other entities, greater than 50 percent of the equity 
                of the entity.
            ``(4) Exception.--The prohibition in paragraph (1) shall 
        not--
                    ``(A) apply to a loan, extension of credit, or 
                investment commitment by an applicant, or other entity 
                covered by a certification under subparagraph (A), (B), 
                or (C) of paragraph (3), in Southern Sudan, Southern 
                Kordofan/Nuba Mountains State, Blue Nile State, or 
                Abyei, Darfur, if the Corporation, with the concurrence 
                of the Secretary of State, determines that such loan, 
                extension of credit, or investment commitment will 
                provide emergency relief, promote economic self-
                sufficiency, or implement a nonmilitary program in 
                support of a viable peace agreement in Sudan, including 
                the Comprehensive Peace Agreement for Sudan and the 
                Darfur Peace Agreement; or
                    ``(B) prohibit the Corporation from providing 
                support for projects in Southern Sudan, Southern 
                Kordofan/Nuba Mountains State, Blue Nile State, and 
                Abyei, Darfur, if the Corporation, with the concurrence 
                of the Secretary of State, determines that such 
                projects will provide emergency relief, promote 
                economic self-sufficiency, or implement a nonmilitary 
                program in support of a viable peace agreement in 
                Sudan, including the Comprehensive Peace Agreement for 
                Sudan and the Darfur Peace Agreement.
            ``(5) Prospective application of subsection.--This 
        subsection shall not be applied to limit support by the 
        Corporation under this title because an applicant, or other 
        entity covered by a certification under subparagraph (A), (B), 
        or (C) of paragraph (3) engaged in commercial activity 
        specifically licensed by the Office of Foreign Assets Control 
        of the Department of the Treasury.''.
    (b) Termination.--
            (1) In general.--The amendment made by this section shall 
        cease to be effective with respect to a country that is a state 
        sponsor of terrorism 30 days after the President certifies to 
        the appropriate congressional committees that--
                    (A) the country has ceased providing support for 
                acts of international terrorism and no longer satisfies 
                the requirements for designation as a state sponsor of 
                terrorism;
                    (B) the country does not possess nuclear weapons or 
                a significant program to develop nuclear weapons; and
                    (C) the country is not committing genocide or 
                conducting a program of ethnic cleansing against a 
                civilian population that approaches genocide.
            (2) Definitions.--In this subsection:
                    (A) Appropriate congressional committees.--The term 
                ``appropriate congressional committees'' means the 
                Committee on Foreign Affairs of the House of 
                Representatives and the Committee on Foreign Relations 
                of the Senate.
                    (B) State sponsor of terrorism.--The term ``state 
                sponsor of terrorism'' has the meaning given that term 
                in section 237(r)(2)(D) of the Foreign Assistance Act 
                of 1961, as added by subsection (a) of this section.

SEC. 11. INCREASED TRANSPARENCY.

    (a) In General.--Section 237 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2197) is further amended by adding at the end the following 
new subsections:
    ``(s) Availability of Project Information.--Beginning 90 days after 
the date of the enactment of the Overseas Private Investment 
Corporation Reauthorization Act of 2007, the Corporation shall make 
public, and post on its Internet website, summaries of all new projects 
supported by the Corporation, and other relevant information, except 
that the Corporation shall not include any confidential business 
information in the summaries and information made available under this 
subsection.
    ``(t) Review of Methodology.--Not later than 180 days after the 
date of the enactment of the Overseas Private Investment Corporation 
Reauthorization Act of 2007, the Corporation shall publish in the 
Federal Register and periodically revise, subject to a period of public 
comment, the detailed methodology, including relevant regulations, used 
to assess and monitor the impact of projects supported by the 
Corporation on the development and environment of, and international 
worker rights in, host countries, and on United States employment.
    ``(u) Public Notice Prior to Project Approval.--
            ``(1) Public notice.--The Board of Directors of the 
        Corporation may not vote in favor of any action proposed to be 
        taken by the Corporation on any Category A project until at 
        least 60 days after the Corporation--
                    ``(A) makes available for public comment a summary 
                of the project and relevant information about the 
                project; and
                    ``(B) makes the summary and information described 
                in paragraph (1) available to locally affected groups 
                in the area of impact of the proposed project, and to 
                host country nongovernmental organizations.
        The Corporation shall not include any business confidential 
        information in the summary and information made available under 
        subparagraphs (A) and (B).
            ``(2) Published response.--To the extent practicable, the 
        Corporation shall publish responses to the comments received 
        under paragraph (1) with respect to a Category A project and 
        submit the responses to the Board not later than 7 days before 
        a vote is to be taken on any action proposed by the Corporation 
        on the project.
            ``(3) Definitions.--In this subsection, the term `Category 
        A project' means any project or other activity for which the 
        Corporation proposes to provide insurance, reinsurance, 
        financing, or other support under this title and which is 
        likely to have significant adverse environmental impacts.''.
    (b) Office of Accountability.--Section 237 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2197) is further amended by adding at 
the end the following new subsection:
    ``(v) Office of Accountability.--The Corporation shall maintain an 
Office of Accountability to provide problem-solving services for 
projects supported by the Corporation and to review the Corporation's 
compliance with its environmental, social, worker rights, human rights, 
and transparency policies and procedures, to the maximum extent 
practicable. The Office of Accountability shall operate in a manner 
that is fair, objective and transparent.''.

SEC. 12. FRAUD AND OTHER BREACHES OF CONTRACT.

    Section 237(n) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2197(n)) is amended--
            (1) by striking ``Whoever'' and inserting:
            ``(1) In general.--Whoever''; and
            (2) by adding at the end the following:
            ``(2) Deferrals to department of justice.--(A) The 
        President of the Corporation shall refer to the Department of 
        Justice for appropriate action information known to the 
        Corporation concerning any substantial evidence of--
                    ``(i) a violation of this title;
                    ``(ii) a material breach of contract entered into 
                with the Corporation by an eligible investor; or
                    ``(iii) a material false representation made by an 
                investor to the Corporation.
            ``(B) Subparagraph (A) does not apply if the President of 
        the Corporation concludes that the matter described in clause 
        (i), (ii), or (iii), as the case may be, of subparagraph (A)--
                    ``(i) is not evidence of a possible violation of 
                criminal law; and
                    ``(ii) is not evidence that the Federal Government 
                is entitled to civil remedy or to impose a civil 
                penalty.''.

SEC. 13. TRANSPARENCY AND ACCOUNTABILITY OF INVESTMENT FUNDS.

    (a) In General.--Section 239 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2199) is amended by adding at the end the following:
    ``(l) Transparency and Accountability of Investment Funds.--
            ``(1) Competitive selection of investment fund 
        management.--With respect to any investment fund that the 
        Corporation creates on or after the date of the enactment of 
        the Overseas Private Investment Corporation Reauthorization Act 
        of 2007, the Corporation may select persons to manage the fund 
        only by contract using full and open competitive procedures.
            ``(2) Criteria for selection.--In assessing proposals for 
        investment fund management proposals, the Corporation shall 
        consider, in addition to other factors, the following:
                    ``(A) The prospective fund management's experience, 
                depth, and cohesiveness.
                    ``(B) The prospective fund management's track 
                record in investing risk capital in emerging markets.
                    ``(C) The prospective fund management's experience, 
                management record, and monitoring capabilities in its 
                target countries, including details of local presence 
                (directly or through local alliances).
                    ``(D) The prospective fund management's experience 
                as a fiduciary in managing institutional capital, 
                meeting reporting requirements, and administration.
                    ``(E) The prospective fund management's record in 
                avoiding investments in companies that would be 
                disqualified under section 237(r).
            ``(3) Annual report.--The Corporation shall include in each 
        annual report under section 240A an analysis of the investment 
        fund portfolio of the Corporation, including the following:
                    ``(A) Fund performance.--An analysis of the 
                aggregate financial performance of the investment fund 
                portfolio grouped by region and maturity.
                    ``(B) Status of loan guaranties.--The amount of 
                guaranties committed by the Corporation to support 
                investment funds, including the percentage of such 
                amount that has been disbursed to the investment funds.
                    ``(C) Risk ratings.--The definition of risk 
                ratings, and the current aggregate risk ratings for the 
                investment fund portfolio, including the number of 
                investment funds in each of the Corporation's rating 
                categories.
                    ``(D) Competitive selection of investment fund 
                management.--The number of proposals received and 
                evaluated for each newly established investment 
                fund.''.
    (b) GAO Audit.--Not later than 1 year after the submission of the 
first report to Congress under section 240A of the Foreign Assistance 
Act of 1961 that includes the information required by section 239(l)(3) 
of that Act (as added by subsection (a) of this section), the 
Comptroller General of the United States shall prepare and submit to 
the Committee on Foreign Affairs of the House of Representatives and 
the Committee on Foreign Relations of the Senate an independent 
assessment of the investment fund portfolio of the Overseas Private 
Investment Corporation, covering the items required to be addressed 
under such section 239(l)(3).

SEC. 14. EXTENSION OF AUTHORITY TO OPERATE IN IRAQ.

    Section 239 of the Foreign Assistance Act of 1961 (22 U.S.C. 2199) 
is amended by adding at the end the following:
    ``(m) Operations in Iraq.--Notwithstanding subsections (a) and (b) 
of section 237, the Corporation is authorized to undertake in Iraq any 
program authorized by this title.''.

SEC. 15. CONSISTENCY WITH EXISTING LAW.

    Section 239 of the Foreign Assistance Act of 1961 (22 U.S.C. 2199) 
is further amended by adding at the end the following:
    ``(n) Consistency With Other Law.--Section 620L of this Act shall 
apply to any insurance, reinsurance, guaranty, or other financing 
issued by the Corporation for projects in the West Bank and Gaza to the 
same extent as such section applies to other assistance under this Act.
    ``(o) Limitation on Assistance to Gaza and the West Bank.--The 
Corporation may not provide insurance, reinsurance, a guaranty, 
financing, or other assistance to support a project in any part of Gaza 
or the West Bank unless the Secretary of State determines that the 
location for the project is not under the effective control of Hamas or 
any other foreign terrorist organization designated under section 219 
of the Immigration and Nationality Act (8 U.S.C. 1189).''.

SEC. 16. CONGRESSIONAL NOTIFICATION REGARDING MAXIMUM CONTINGENT 
              LIABILITY.

    Section 239 of the Foreign Assistance Act of 1961 (22 U.S.C. 2199) 
is further amended by adding at the end the following:
    ``(p) Congressional Notification of Increase in Maximum Contingent 
Liability.--The Corporation shall notify the Committee on Foreign 
Affairs of the House of Representatives and the Committee on Foreign 
Relations of the Senate not later than 15 days after the date on which 
the Corporation's 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), exceeds the previous 
fiscal year's maximum contingent liability by 25 percent.''.

SEC. 17. ASSISTANCE FOR SMALL BUSINESSES AND ENTITIES.

    Section 240 of the Foreign Assistance Act of 1961 (22 U.S.C. 2200) 
is amended by adding at the end the following:
    ``(c) Resources Dedicated to Small Businesses, Cooperatives, and 
Other Small United States Investors.--The Corporation shall ensure that 
adequate personnel and resources, including senior officers, are 
dedicated to assist United States small businesses, cooperatives, and 
other small United States investors in obtaining insurance, 
reinsurance, financing, and other support under this title. The 
Corporation shall include, in each annual report under section 240A, 
the following information with respect to the period covered by the 
report:
            ``(1) A description of such personnel and resources.
            ``(2) The number of small businesses, cooperatives, and 
        other small United States investors that received such 
        insurance, reinsurance, financing, and other support, and the 
        dollar value of such insurance, reinsurance, financing and 
        other support.
            ``(3) A description of the projects for which such 
        insurance, reinsurance, financing, and other support was 
        provided.''.

SEC. 18. TECHNICAL CORRECTIONS.

    (a) Pilot Equity Finance Program.--Section 234 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2194) is amended--
            (1) by striking subsection (g); and
            (2) by redesignating subsection (h) as subsection (g).
    (b) Transfer Authority.--Section 235 of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2195) is amended--
            (1) by striking subsection (e); and
            (2) by redesignating subsection (f) as subsection (e).
    (c) Guaranty Contract.--Section 237(j) of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2197(j)) is amended by inserting ``insurance, 
reinsurance, and'' after ``Each''.
    (d) Transfer of Predecessor Programs and Authorities.--
            (1) Transfer.--Section 239 of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2199), as amended by the preceding provisions 
        of this Act, is amended--
                    (A) by striking subsection (b); and
                    (B) by redesignating the subsections (c) through 
                (p) as subsections (b) through (o), respectively.
            (2) Conforming amendments.--(A) Section 237(m)(1) of the 
        Foreign Assistance Act of 1961 (22 U.S.C. 2197(m)(1)) is 
        amended by striking ``239(g)'' and inserting ``239(f)''.
            (B) Section 240A(a) of the Foreign Assistance Act of 1961 
        (22 U.S.C. 2200A(a)) is amended--
                    (i) in paragraph (1), by striking ``239(h)'' and 
                inserting ``239(g)''; and
                    (ii) in paragraph (2)(A), by striking ``239(i)'' 
                and inserting ``239(h)''.
            (C) Section 209(e)(16) of the Admiral James W. Nance and 
        Meg Donovan Foreign Relations Authorization Act, Fiscal Years 
        2000 and 2001 (as enacted into law by section 1000(a)(7) of 
        Public Law 106-113; 31 U.S.C. 1113 note) is amended by striking 
        ``239(c)'' and ``2199(c)'' and inserting ``239(b)'' and 
        ``2199(b)'', respectively.
    (e) Additional Clerical Amendments.--Section 234(b) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2194(b)) is amended by striking 
``235(a)(2)'' and inserting ``235(a)(1)''.

SEC. 19. EFFECTIVE DATE.

    (a) New Applications.--This Act and the amendments made by this Act 
shall apply with respect to any application for insurance, reinsurance, 
a guaranty, financing, or other support under title IV of chapter 2 of 
part I of the Foreign Assistance Act of 1961 if the application is 
received by the Overseas Private Investment Corporation on or after 
July 1, 2007, and the application is approved by the Corporation on or 
after the date of the enactment of this Act.
    (b) Extensions and Renewals.--
            (1) In general.--Subject to paragraph (2), this Act and the 
        amendments made by this Act shall apply with respect to any 
        extension or renewal of a contract or agreement for any such 
        insurance, reinsurance, guaranty, financing, or support that 
        was entered into by the Corporation before the date of the 
        enactment of this Act if the extension or renewal is approved 
        by the Corporation on or after such date of enactment.
            (2) Exception.--This Act and the amendments made by this 
        Act shall not apply to any extension or renewal which is 
        substantially identical to an extension or renewal formally 
        requested in a detailed writing filed with the Corporation 
        before July 1, 2007.

            Passed the House of Representatives July 23, 2007.

            Attest:

                                            LORRAINE C. MILLER,

                                                                 Clerk.

                               By Deborah M. Spriggs,

                                                          Deputy Clerk.