[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2072 Engrossed in House (EH)]

112th CONGRESS
  2d Session
                                H. R. 2072

_______________________________________________________________________

                                 AN ACT


 
  To reauthorize the Export-Import Bank of the United States, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Export-Import Bank 
Reauthorization Act of 2012''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Extension of authority.
Sec. 3. Limitations on outstanding loans, guarantees, and insurance.
Sec. 4. Export-Import Bank exposure limit business plan.
Sec. 5. Study by the Comptroller General on the role of the Bank in the 
                            world economy and the Bank's risk 
                            management.
Sec. 6. Monitoring of default rates on Bank financing; reports on 
                            default rates; safety and soundness review.
Sec. 7. Improvement and clarification of due diligence standards for 
                            lender partners.
Sec. 8. Non-subordination requirement.
Sec. 9. Notice and comment for Bank transactions exceeding 
                            $100,000,000.
Sec. 10. Categorization of purpose of loans and long-term guarantees in 
                            annual report.
Sec. 11. Negotiations to end export credit financing.
Sec. 12. Publication of guidelines for economic impact analyses and 
                            documentation of such analyses.
Sec. 13. Report on implementation of recommendations of the Government 
                            Accountability Office.
Sec. 14. Examination of Bank support for small business.
Sec. 15. Review and report on domestic content policy.
Sec. 16. Improvement of method for calculating the effects of Bank 
                            financing on job creation and maintenance 
                            in the United States.
Sec. 17. Periodic audits of Bank transactions.
Sec. 18. Prohibitions on financing for certain persons involved in 
                            sanctionable activities with respect to 
                            Iran.
Sec. 19. Use of portion of Bank surplus to update information 
                            technology systems.
Sec. 20. Modifications relating to the advisory committee.
Sec. 21. Financing for goods manufactured in the United States used in 
                            global textile and apparel supply chains.
Sec. 22. Technical correction.
Sec. 23. Sub-Saharan Africa Advisory Committee.
Sec. 24. Dual use exports.
Sec. 25. Effective date.

SEC. 2. EXTENSION OF AUTHORITY.

    Section 7 of the Export-Import Bank Act of 1945 (12 U.S.C. 635f) is 
amended by striking ``2011'' and inserting ``2014''.

SEC. 3. LIMITATIONS ON OUTSTANDING LOANS, GUARANTEES, AND INSURANCE.

    Section 6(a)(2) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635e(a)(2)) is amended--
            (1) in subparagraph (D), by striking ``and'';
            (2) in subparagraph (E), by striking the comma at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(F) during fiscal year 2012 and each succeeding 
                fiscal year, $120,000,000,000, except that--
                            ``(i) the applicable amount for each of 
                        fiscal years 2013 and 2014 shall be 
                        $130,000,000,000 if--
                                    ``(I) the Bank has submitted a 
                                report as required by section 4(a) of 
                                the Export-Import Bank Reauthorization 
                                Act of 2012; and
                                    ``(II) the rate calculated under 
                                section 8(g)(1) of this Act is less 
                                than 2 percent for the quarter ending 
                                with the beginning of the fiscal year, 
                                or for any quarter in the fiscal year; 
                                and
                            ``(ii) notwithstanding clause (i), the 
                        applicable amount for fiscal year 2014 shall be 
                        $140,000,000,000 if--
                                    ``(I) the rate calculated under 
                                section 8(g)(1) of this Act is less 
                                than 2 percent for the quarter ending 
                                with the beginning of the fiscal year, 
                                or for any quarter in the fiscal year;
                                    ``(II) the Bank has submitted a 
                                report as required by subsection (b) of 
                                section 5 of the Export-Import Bank 
                                Reauthorization Act of 2012, except 
                                that the preceding provisions of this 
                                subclause shall not apply if the 
                                Comptroller General has not submitted 
                                the report required by subsection (a) 
                                of such section 5 on or before July 1, 
                                2013; and
                                    ``(III) the Secretary of the 
                                Treasury has submitted the reports 
                                required by section 11(b) of the 
                                Export-Import Bank Reauthorization Act 
                                of 2012.''.

SEC. 4. EXPORT-IMPORT BANK EXPOSURE LIMIT BUSINESS PLAN.

    (a) In General.--Not later than September 30, 2012, the Export-
Import Bank of the United States shall submit to the Congress and the 
Comptroller General a written report that contains the following:
            (1) A business plan that--
                    (A) includes an estimate by the Bank of the 
                appropriate exposure limits of the Bank for 2012, 2013, 
                and 2014;
                    (B) justifies the estimate; and
                    (C) estimates any anticipated growth of the Bank 
                for 2012, 2013, and 2014--
                            (i) by industry sector;
                            (ii) by whether the products involved are 
                        short-term loans, medium-term loans, long-term 
                        loans, insurance, medium-term guarantees, or 
                        long-term guarantees; and
                            (iii) by key market.
            (2) An analysis of the potential for increased or decreased 
        risk of loss to the Bank as a result of the estimated exposure 
        limit, including an analysis of increased or decreased risks 
        associated with changes in the composition of Bank exposure, by 
        industry sector, by product offered, and by key market.
            (3) An analysis of the ability of the Bank to meet its 
        small business and sub-Saharan Africa mandates and comply with 
        its carbon policy mandate under the proposed exposure limit, 
        and an analysis of any increased or decreased risk of loss 
        associated with meeting or complying with the mandates under 
        the proposed exposure limit.
            (4) An analysis of the adequacy of the resources of the 
        Bank to effectively process, approve, and monitor 
        authorizations, including the conducting of required economic 
        impact analysis, under the proposed exposure limit.
    (b) GAO Review of Report and Business Plan.--Not later than June 1, 
2013, the Comptroller General shall submit to the Congress a written 
analysis of the report and business plan submitted under subsection 
(a), which shall include such recommendations with respect to the 
report and business plan as the Comptroller General deems appropriate.

SEC. 5. STUDY BY THE COMPTROLLER GENERAL ON THE ROLE OF THE BANK IN THE 
              WORLD ECONOMY AND THE BANK'S RISK MANAGEMENT.

    (a) In General.--Within 10 months after the date of the enactment 
of this Act, the Comptroller General of the United States shall 
complete and submit to the Export-Import Bank of the United States, the 
Committee on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of Representatives a 
report which--
            (1) evaluates--
                    (A) the history of the rate of growth of the Bank, 
                and its causes, with specific consideration given to--
                            (i) the capital market conditions for 
                        export financing;
                            (ii) increased competition from foreign 
                        export credit agencies;
                            (iii) the rate of growth of the Bank from 
                        2008 to the present;
                    (B) the effectiveness of the Bank's risk 
                management, including--
                            (i) potential for losses from each of the 
                        products offered by the Bank; and
                            (ii) the overall risk of the Bank's 
                        portfolio, taking into account--
                                    (I) market risk;
                                    (II) credit risk;
                                    (III) political risk;
                                    (IV) industry-concentration risk;
                                    (V) geographic-concentration risk;
                                    (VI) obligor-concentration risk; 
                                and
                                    (VII) foreign-currency risk;
                    (C) the Bank's use of historical default and 
                recovery rates to calculate future program costs, 
                taking into consideration cost estimates determined 
                under the Federal Credit Reform Act of 1990 (2 U.S.C. 
                661 et seq.) and whether discount rates applied to cost 
                estimates should reflect the risks described in 
                subparagraph (B);
                    (D) the fees charged by the Bank for the products 
                the Bank offers, whether the Bank's fees properly 
                reflect the risks described in subparagraph (B), and 
                how the fees are affected by United States 
                participation in international agreements; and
                    (E) whether the Bank's loan loss reserves policy is 
                sufficient to cover the risks described in subparagraph 
                (B); and
            (2) makes appropriate recommendations with respect to the 
        matters so evaluated.
    (b) Recommendations and Report by the Bank.--Not later than 120 
days after the Bank receives the report, the Bank shall submit to the 
Congress a report on the implementation of recommendations included in 
the report so received. If the Bank does not adopt the recommendations, 
the Bank shall include in its report an explanation of why the Bank has 
not done so.

SEC. 6. MONITORING OF DEFAULT RATES ON BANK FINANCING; REPORTS ON 
              DEFAULT RATES; SAFETY AND SOUNDNESS REVIEW.

    Section 8 of the Export-Import Bank Act of 1945 (12 U.S.C. 635g) is 
amended by adding at the end the following:
    ``(g) Monitoring of Default Rates on Bank Financing; Reports on 
Default Rates; Safety and Soundness Review.--
            ``(1) Monitoring of default rates.--Not less frequently 
        than quarterly, the Bank shall calculate the rate at which the 
        entities to which the Bank has provided short-, medium-, or 
        long-term financing are in default on a payment obligation 
        under the financing, by dividing the total amount of the 
        required payments that are overdue by the total amount of the 
        financing involved.
            ``(2) Additional calculation by type of product, by key 
        market, and by industry sector; report to congress.--In 
        addition, the Bank shall, not less frequently than quarterly--
                    ``(A) calculate the rate of default--
                            ``(i) with respect to whether the products 
                        involved are short-term loans, medium-term 
                        loans, long-term loans, insurance, medium-term 
                        guarantees, or long-term guarantees;
                            ``(ii) with respect to each key market 
                        involved; and
                            ``(iii) with respect to each industry 
                        sector involved; and
                    ``(B) submit to the Committee on Banking, Housing, 
                and Urban Affairs of the Senate and the Committee on 
                Financial Services of the House of Representatives a 
                report on each such rate and any information the Bank 
                deems relevant.
            ``(3) Report on causes of default rate; plan to reduce 
        default rate.--Within 45 days after a rate calculated under 
        paragraph (1) equals or exceeds 2 percent, the Bank shall 
        submit to the Congress a written report that explains the 
        circumstances that have caused the default rate to be at least 
        2 percent, and includes a plan to reduce the default rate to 
        less than 2 percent.
            ``(4) Plan contents.--The plan referred to in paragraph (3) 
        shall--
                    ``(A) provide a detailed explanation of the 
                processes and controls by which the Bank monitors and 
                tracks outstanding loans;
                    ``(B) detail specific planned actions, including a 
                time frame for completing the actions, to reduce the 
                default rate described in paragraph (1) to less than 2 
                percent.
            ``(5) Monthly reports required while default rate is at 
        least 2 percent.--For so long as the default rate calculated 
        under paragraph (1) is at least 2 percent, the Bank shall 
        submit monthly reports to the Congress describing the specific 
        actions taken during such period to reduce the default rate.
            ``(6) Safety and soundness review.--If the default rate 
        calculated under paragraph (1) remains above 2 percent for a 
        period of 6 months, the Secretary of the Treasury shall provide 
        for an independent third party to--
                    ``(A) conduct a review of the loan programs and 
                funds of the Bank, which shall determine--
                            ``(i) the financial safety and soundness of 
                        the programs and funds; and
                            ``(ii) the extent of loan loss reserves and 
                        capital adequacy of the programs and funds; and
                    ``(B) submit to the Secretary, within 60 days after 
                the end of the 6-month period, a report that--
                            ``(i) describes the methodology and 
                        standards used to conduct the review required 
                        by subparagraph (A);
                            ``(ii) sets forth the results and findings 
                        of the review, including the extent of loan 
                        loss reserves and capital adequacy of the 
                        programs and funds of the Bank; and
                            ``(iii) includes recommendations regarding 
                        restoring the reserves and capital to maintain 
                        the programs and funds in a safe and sound 
                        condition.''.

SEC. 7. IMPROVEMENT AND CLARIFICATION OF DUE DILIGENCE STANDARDS FOR 
              LENDER PARTNERS.

    Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 635) is 
amended by adding at the end the following:
    ``(i) Due Diligence Standards for Lender Partners.--The Bank shall 
set due diligence standards for its lender partners and participants, 
which should be applied across all programs consistently. To minimize 
or prevent fraudulent activity, the Bank should require all delegated 
lenders to implement `Know your customer practices'.''.

SEC. 8. NON-SUBORDINATION REQUIREMENT.

    Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 635), as 
amended by section 7 of this Act, is amended by adding at the end the 
following:
    ``(j) Non-subordination Requirement.--In entering into financing 
contracts, the Bank shall seek a creditor status which is not 
subordinate to that of all other creditors, in order to reduce the risk 
to, and enhance recoveries for, the Bank.''.

SEC. 9. NOTICE AND COMMENT FOR BANK TRANSACTIONS EXCEEDING 
              $100,000,000.

    (a) In General.--Section 3(c) of the Export-Import Bank Act of 1945 
(12 U.S.C. 635a(c)) is amended by adding at the end the following:
            ``(10) Notice and comment requirements.--
                    ``(A) In general.--Before any meeting of the Board 
                for final consideration of a long-term transaction the 
                value of which exceeds $100,000,000, and concurrent 
                with any statement required to be submitted under 
                section 2(b)(3) with respect to the transaction, the 
                Bank shall provide a notice and comment period.
                    ``(B) Financial threshold determinations.--For 
                purposes of determining whether the value of a proposed 
                transaction exceeds the financial threshold set forth 
                in subparagraph (A), the Bank shall aggregate the 
                dollar amount of the proposed transaction and the 
                dollar amounts of all long-term loans and guarantees, 
                approved by the Bank in the preceding 12-month period, 
                that involved the same foreign entity and substantially 
                the same product to be produced.
                    ``(C) Specific requirements.--
                            ``(i) In general.--The Bank shall--
                                    ``(I) publish in the Federal 
                                Register a notice of the application 
                                proposing the transaction;
                                    ``(II) provide a period of not less 
                                than 25 days for the submission to the 
                                Bank of comments on the application; 
                                and
                                    ``(III) notify the Committee on 
                                Banking, Housing, and Urban Affairs of 
                                the Senate, and the Committee on 
                                Financial Services of the House of 
                                Representatives of the application, and 
                                seek comments on the application from 
                                the Department of Commerce and the 
                                Office of Management and Budget.
                            ``(ii) Content of notice.--The notice 
                        published under clause (i)(I) with respect to 
                        an application for a loan or financial 
                        guarantee shall include appropriate information 
                        about--
                                    ``(I) a brief non-proprietary 
                                description of the purposes of the 
                                transaction and the anticipated use of 
                                any item being exported, including, to 
                                the extent the Bank is reasonably 
                                aware, whether the item may be used to 
                                produce exports or provide services in 
                                competition with the exportation of 
                                goods or the provision of services by a 
                                United States industry;
                                    ``(II) the identities of the 
                                obligor, principal supplier, and 
                                guarantor; and
                                    ``(III) a description, such as type 
                                or model number, of any item with 
                                respect to which Bank financing is 
                                being sought, but only to the extent 
                                the description does not disclose any 
                                information that is confidential or 
                                proprietary business information, that 
                                would violate the Trade Secrets Act, or 
                                that would jeopardize jobs in the 
                                United States by supplying information 
                                which competitors could use to compete 
                                with companies in the United States.
                    ``(D) Procedure regarding materially changed 
                applications.--
                            ``(i) In general.--If a material change is 
                        made to an application to which this paragraph 
                        applies, after a notice with respect to the 
                        application is published under subparagraph 
                        (C)(i)(I), the Bank shall publish in the 
                        Federal Register a revised notice of the 
                        application and provide for an additional 
                        comment period as provided in subparagraph 
                        (C)(i)(II).
                            ``(ii) Material change defined.--In clause 
                        (i), the term `material change', with respect 
                        to an application for a loan or guarantee, 
                        includes an increase of at least 25 percent in 
                        the amount of a loan or guarantee requested in 
                        the application.
                    ``(E) Requirement to address views of commenters.--
                Before taking final action on an application to which 
                this paragraph applies, the staff of the Bank shall 
                provide in writing to the Board of Directors the views 
                of any person who submitted comments on the application 
                pursuant to this paragraph.
                    ``(F) Publication of conclusions.--Within 30 days 
                after a final decision of the Board of Directors with 
                respect to an application to which this paragraph 
                applies, the Bank shall provide to a commenter on the 
                application or the decision who makes a request 
                therefor, a non-confidential summary of the facts found 
                and conclusions reached in any detailed analysis or 
                similar study with respect to the loan or guarantee 
                that is the subject of the application, that was 
                submitted to the Board of Directors. Such summary 
                should be sent within 30 days of the receipt of the 
                written request or date of the final decision of the 
                Board of Directors, whichever is later.
                    ``(G) Rule of interpretation.--The obligations 
                imposed by this paragraph shall not be interpreted to 
                create, modify, or preclude any legal right of 
                action.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect 60 days after the date of the enactment of this Act.

SEC. 10. CATEGORIZATION OF PURPOSE OF LOANS AND LONG-TERM GUARANTEES IN 
              ANNUAL REPORT.

    Section 8 of the Export-Import Bank Act of 1945 (12 U.S.C. 635g), 
as amended by section 6 of this Act, is amended by adding at the end 
the following:
    ``(h) Categorization of Purpose of Loans and Long-term 
Guarantees.--In the annual report of the Bank under subsection (a), the 
Bank shall categorize each loan and long-term guarantee made by the 
Bank in the fiscal year covered by the report, and according to the 
following purposes:
            ``(1) `To assume commercial or political risk that exporter 
        or private financial institutions are unwilling or unable to 
        undertake'.
            ``(2) `To overcome maturity or other limitations in private 
        sector export financing'.
            ``(3) `To meet competition from a foreign, officially 
        sponsored, export credit competition'.
            ``(4) `Not identified', and the reason why the purpose is 
        not identified.''.

SEC. 11. NEGOTIATIONS TO END EXPORT CREDIT FINANCING.

    (a) In General.--The Secretary of the Treasury (in this section 
referred to as the ``Secretary'') shall initiate and pursue 
negotiations--
            (1) with other major exporting countries, including members 
        of the Organisation for Economic Co-operation and Development 
        (OECD) and non-OECD members, to substantially reduce, with the 
        ultimate goal of eliminating, subsidized export financing 
        programs and other forms of export subsidies; and
            (2) with all countries that finance air carrier aircraft 
        with funds from a state-sponsored entity, to substantially 
        reduce, with the ultimate goal of eliminating, aircraft export 
        credit financing for all aircraft covered by the 2007 Sector 
        Understanding on Export Credits for Civil Aircraft (in this 
        section referred to as the ``ASU''), including any modification 
        thereof, and all of the following types of aircraft:
                    (A) Heavy aircraft that are capable of a takeoff 
                weight of 300,000 pounds or more, whether or not 
                operating at such a weight during a particular phase of 
                flight.
                    (B) Large aircraft that are capable of a takeoff 
                weight of more than 41,000 pounds, and have a maximum 
                certificated takeoff weight of not more than 300,000 
                pounds.
                    (C) Small aircraft that have a maximum certificated 
                takeoff weight of 41,000 pounds or less.
    (b) Annual Reports on Progress of Negotiations.--Not later than 180 
days after the date of the enactment of this Act, and annually 
thereafter, the Secretary shall submit to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on Financial 
Services of the House of Representatives--
            (1) a report on the progress of any negotiations described 
        in subsection (a)(1), until the Secretary certifies in writing 
        to the committees that all countries that support subsidized 
        export financing programs have agreed to end the support; and
            (2) a report on the progress of any negotiations described 
        in subsection (a)(2), including the progress of any 
        negotiations with respect to each classification of aircraft 
        set forth in subsection (a)(2), until the Secretary certifies 
        in writing to the committees that all countries that support 
        subsidized export financing programs have agreed to end the 
        support of aircraft covered by the ASU.

SEC. 12. PUBLICATION OF GUIDELINES FOR ECONOMIC IMPACT ANALYSES AND 
              DOCUMENTATION OF SUCH ANALYSES.

    (a) Publication of Guidelines.--Not later than 180 days after the 
date of the enactment of this Act, the Export-Import Bank of the United 
States shall develop and make publicly available methodological 
guidelines to be used by the Bank in conducting economic impact 
analyses or similar studies under section 2(e) of the Export-Import 
Bank Act of 1945. In developing the guidelines, the Bank shall take 
into consideration any relevant guidance from the Office of Management 
and Budget.
    (b) Maintenance of Documentation.--Section 2(e)(7) of the Export-
Import Bank Act of 1945 (12 U.S.C. 635(e)(7)) is amended by 
redesignating subparagraphs (E) and (F) as subparagraphs (F) and (G), 
respectively, and inserting after subparagraph (D) the following:
                    ``(E) Maintenance of documentation.--The Bank shall 
                maintain documentation relating to economic impact 
                analyses and similar studies conducted under this 
                subsection in a manner consistent with the Standards 
                for Internal Control of the Federal Government issued 
                by the Comptroller General of the United States.''.

SEC. 13. REPORT ON IMPLEMENTATION OF RECOMMENDATIONS OF THE GOVERNMENT 
              ACCOUNTABILITY OFFICE.

    Not later than 180 days after the date of the enactment of this 
Act, the Export-Import Bank of the United States shall submit to the 
Committee on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of Representatives a 
report on the implementation or rejection by the Bank of the 
recommendations contained in the report of the Government 
Accountability Office entitled ``Export-Import Bank: Improvements 
Needed in Assessment of Economic Impact'', dated September 12, 2007 
(GAO-07-1071), that includes--
            (1) a detailed description of the progress made in 
        implementing each such recommendation; and
            (2) for any such recommendation that has not yet been 
        implemented, an explanation of the reasons the recommendation 
        has not been implemented.

SEC. 14. EXAMINATION OF BANK SUPPORT FOR SMALL BUSINESS.

    Within 180 days after the date of the enactment of this Act, the 
Export-Import Bank of the United States shall examine and report to 
Congress on its current programs, products, and polices with respect to 
the implementation of its export credit insurance program, delegated 
lending authority, and direct loans, and any other programs, products, 
and policies established to support exports from small businesses in 
the United States, and determine the extent to which those policies 
adequately meet the needs of the small businesses in obtaining Bank 
financing to support the maintenance or creation of jobs in the United 
States through exports, consistent with the requirement that the Bank 
obtain a reasonable assurance of repayment.

SEC. 15. REVIEW AND REPORT ON DOMESTIC CONTENT POLICY.

    (a) In General.--The Export-Import Bank of the United States shall 
conduct a review of its domestic content policy for medium- and long-
term transactions. The review shall examine and evaluate the 
effectiveness of the Bank's policy--
            (1) in maintaining and creating jobs in the United States; 
        and
            (2) in contributing to a stronger national economy through 
        the export of goods and services.
    (b) Factors to Consider.--In conducting the review under subsection 
(a), the Bank shall consider the following:
            (1) Whether the domestic content policy accurately captures 
        the costs of United States production of goods and services, 
        including the direct and indirect costs of manufacturing costs, 
        parts, components, materials and supplies, research, planning 
        engineering, design, development, production, return on 
        investment, marketing and other business costs and the effect 
        of such policy on the maintenance and creation of jobs in the 
        United States.
            (2) The ability of the Bank to provide financing that is 
        competitive with the financing provided by foreign export 
        credit agencies and the impact that such financing has in 
        enabling companies with operations in the United States to 
        contribute to a stronger United States economy by increasing 
        employment through the export of goods and services.
            (3) The effects of the domestic content policy on the 
        manufacturing and service workforce of the United States.
            (4) Any recommendations the members of the Bank's Advisory 
        Committee have regarding the Bank's domestic content policy.
            (5) The effect that changes to the Bank's domestic content 
        requirements would have in providing companies an incentive to 
        create and maintain operations in the United States and to 
        increase jobs in the United States.
    (c) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Bank shall submit a report on the results of the 
review conducted under this section to the Committee on Banking, 
Housing, and Urban Affairs of the Senate, and the Committee on 
Financial Services of the House of Representatives.

SEC. 16. IMPROVEMENT OF METHOD FOR CALCULATING THE EFFECTS OF BANK 
              FINANCING ON JOB CREATION AND MAINTENANCE IN THE UNITED 
              STATES.

    (a) GAO Study.--The Comptroller General of the United States shall 
conduct a study of the process and methodology used by the Export-
Import Bank of the United States (in this section referred to as the 
``Bank'') to calculate the effects of the provision of financing by the 
Bank on the creation and maintenance of employment in the United 
States, determine and assess the basis on which the Bank has so used 
the methodology, and make any recommendations the Comptroller General 
deems appropriate.
    (b) Report.--Within 1 year after the date of the enactment of this 
Act, the Comptroller General shall submit to the Congress and the Bank 
the results of the study required by subsection (a).
    (c) Implementation of Recommendations.--If the report submitted 
pursuant to subsection (b) includes recommendations, the Bank may 
establish a more accurate methodology of the kind described in 
subsection (a) based on the recommendations.

SEC. 17. PERIODIC AUDITS OF BANK TRANSACTIONS.

    (a) In General.--Within 2 years after the date of the enactment of 
this Act, and periodically (but not less frequently than every 4 years) 
thereafter, the Comptroller General of the United States shall conduct 
an audit of the loan and guarantee transactions of the Export-Import 
Bank of the United States to determine the compliance of the Bank with 
the underwriting guidelines, lending policies, due diligence 
procedures, and content guidelines of the Bank.
    (b) Review of Fraud Controls.--The Comptroller General of the 
United States shall review the adequacy of the design and effectiveness 
of the controls used by the Export-Import Bank of the United States to 
prevent, detect, and investigate fraudulent applications for loans and 
guarantees, including by auditing a sample of Bank transactions, and 
submit to the Congress a written report which contains such 
recommendations with respect to the controls as the Comptroller General 
deems appropriate.

SEC. 18. PROHIBITIONS ON FINANCING FOR CERTAIN PERSONS INVOLVED IN 
              SANCTIONABLE ACTIVITIES WITH RESPECT TO IRAN.

    (a) Prohibition on Financing for Persons That Engage in Certain 
Sanctionable Activities.--
            (1) In general.--Beginning on the date that is 180 days 
        after the date of the enactment of this Act, the Board of 
        Directors of the Export-Import Bank of the United States may 
        not approve any transaction that is subject to approval by the 
        Board with respect to the provision by the Bank of any 
        guarantee, insurance, or extension of credit, or the 
        participation by the Bank in any extension of credit, to a 
        person in connection with the exportation of any good or 
        service unless the person makes the certification described in 
        paragraph (2).
            (2) Certification described.--The certification described 
        in this paragraph is a certification by a person--
                    (A) that neither the person nor any other person 
                owned or controlled by the person--
                            (i) engages in any activity described in 
                        section 5(a) of the Iran Sanctions Act of 1996 
                        (Public Law 104-172; 50 U.S.C. 1701 note) for 
                        which the person may be subject to sanctions 
                        under that Act;
                            (ii) exports sensitive technology, as 
                        defined in section 106 of the Comprehensive 
                        Iran Sanctions, Accountability, and Divestment 
                        Act of 2010 (22 U.S.C. 8515), to Iran; or
                            (iii) engages in any activity prohibited by 
                        part 560 of title 31, Code of Federal 
                        Regulations (commonly known as the ``Iranian 
                        Transactions Regulations''), unless the 
                        activity is disclosed to the Office of Foreign 
                        Assets Control of the Department of the 
                        Treasury when the activity is discovered; or
                    (B) if the person or any other person owned or 
                controlled by the person has engaged in an activity 
                described in subparagraph (A), that--
                            (i) in the case of an activity described in 
                        subparagraph (A)(i)--
                                    (I) the President has waived the 
                                imposition of sanctions with respect to 
                                the person that engaged in that 
                                activity pursuant to section 4(c), 
                                6(b)(5), or 9(c) of the Iran Sanctions 
                                Act of 1996 (Public Law 104-172; 50 
                                U.S.C. 1701 note);
                                    (II)(aa) the President has invoked 
                                the special rule described in section 
                                4(e)(3) of that Act with respect to the 
                                person that engaged in that activity; 
                                or
                                    (bb)(AA) the person that engaged in 
                                that activity determines, based on its 
                                best knowledge and belief, that the 
                                person meets the criteria described in 
                                subparagraph (A) of such section 
                                4(e)(3) and has provided to the 
                                President the assurances described in 
                                subparagraph (B) of that section; and
                                    (BB) the Secretary of State has 
                                issued an advisory opinion to that 
                                person that the person meets such 
                                criteria and has provided to the 
                                President those assurances; or
                                    (III) the President has determined 
                                that the criteria have been met for the 
                                exception provided for under section 
                                5(a)(3)(C) of the Iran Sanctions Act of 
                                1996 to apply with respect to the 
                                person that engaged in that activity; 
                                or
                            (ii) in the case of an activity described 
                        in subparagraph (A)(ii), the President has 
                        waived, pursuant to section 401(b)(1) of the 
                        Comprehensive Iran Sanctions, Accountability, 
                        and Divestment Act of 2010 (22 U.S.C. 
                        8551(b)(1)), the application of the prohibition 
                        under section 106(a) of that Act (22 U.S.C. 
                        8515(a)) with respect to that person.
    (b) Prohibition on Financing.--Beginning on the date that is 180 
days after the date of the enactment of this Act, the Board of 
Directors of the Export-Import Bank of the United States may not 
approve any transaction that is subject to approval by the Board with 
respect to the provision by the Bank of any guarantee, insurance, or 
extension of credit, or the participation by the Bank in any extension 
of credit, in connection with a financing in which a person that is a 
borrower or controlling sponsor, or a person that is owned or 
controlled by such borrower or controlling sponsor, is subject to 
sanctions under section 5(a) of the Iran Sanctions Act of 1996 (Public 
Law 104-172; 50 U.S.C. 1701 note).
    (c) Advisory Opinions.--
            (1) Authority.--The Secretary of State is authorized to 
        issue advisory opinions described in subsection 
        (a)(2)(B)(i)(II).
            (2) Notice to congress.--If the Secretary issues an 
        advisory opinion pursuant to paragraph (1), the Secretary shall 
        notify the appropriate congressional committees of the opinion 
        not later than 30 days after issuing the opinion.
    (d) Definitions.--In this section:
            (1) Appropriate congressional committees; person.--The 
        terms ``appropriate congressional committees'' and ``person'' 
        have the meanings given those terms in section 14 of the Iran 
        Sanctions Act of 1996 (Public Law 104-172; 50 U.S.C. 1701 
        note).
            (2) Controlling sponsor.--The term ``controlling sponsor'' 
        means a person providing controlling direct private equity 
        investment (excluding investments made through publicly held 
        investment funds, publicly held securities, public offerings, 
        or similar public market vehicles) in connection with a 
        financing.

SEC. 19. USE OF PORTION OF BANK SURPLUS TO UPDATE INFORMATION 
              TECHNOLOGY SYSTEMS.

    Section 3 of the Export-Import Bank Act of 1945 (12 U.S.C. 635a) is 
amended by adding at the end the following:
    ``(j) Authority to Use Portion of Bank Surplus to Update 
Information Technology Systems.--
            ``(1) In general.--Subject to paragraphs (3) and (4), the 
        Bank may use an amount equal to 1.25 percent of the surplus of 
        the Bank during fiscal years 2012, 2013, and 2014 to--
                    ``(A) seek to remedy any of the operational 
                weakness and risk management vulnerabilities of the 
                Bank which are the result of the information technology 
                system of the Bank;
                    ``(B) remedy data fragmentation, enhance 
                information flow throughout the Bank, and manage data 
                across the Bank; and
                    ``(C) enhance the operational capacity and risk 
                management capabilities of the Bank to better enable 
                the Bank to increase exports and grow jobs while 
                protecting the taxpayer.
            ``(2) Surplus.--In paragraph (1), the term `surplus' means 
        the amount (if any) by which--
                    ``(A) the sum of the interest and fees collected by 
                the Bank; exceeds
                    ``(B) the sum of--
                            ``(I) the funds set aside to cover expected 
                        losses on transactions financed by the Bank; 
                        and
                            ``(ii) the costs incurred to cover the 
                        administrative expenses of the Bank.
            ``(3) Limitation.--The aggregate of the amounts used in 
        accordance with paragraph (1) for fiscal years 2012, 2013, and 
        2014 shall not exceed $20,000,000.
            ``(4) Subject to appropriations.--The authority provided by 
        paragraph (1) may be exercised only to such extent and in such 
        amounts as are provided in advance in appropriations Acts.''.

SEC. 20. MODIFICATIONS RELATING TO THE ADVISORY COMMITTEE.

    (a) Representation of the Textile Industry.--Section 3(d)(1)(B) of 
the Export-Import Bank Act of 1945 (12 U.S.C. 635a(d)(1)(B)) is amended 
by striking ``and State government'' inserting ``State government, and 
the textile industry''.
    (b) Access to Bank Products by the Textile Industry.--
            (1) Consideration by advisory committee.--Section 3(d) of 
        such Act (12 U.S.C. 635a(d)) is amended by adding at the end 
        the following:
    ``(5) In carrying out paragraph (4), the Advisory Committee shall 
consider ways to promote the financing of Bank transactions for the 
textile industry, consistent with the requirement that the Bank obtain 
a reasonable assurance of repayment, and determine ways to--
            ``(A) increase Bank support for the exports of textile 
        components or inputs made in the United States; and
            ``(B) support the maintenance, promotion and expansion of 
        jobs in the United States that are critical to the manufacture 
        of textile components and inputs.''.
            (2) Annual report to congress on advisory committee 
        determinations.--Section 8 of such Act (12 U.S.C. 635g), as 
        amended by sections 6 and 10 of this Act, is amended by adding 
        at the end the following:
    ``(i) Access to Bank Products by the Textile Industry.--The Bank 
shall include in its annual report to the Congress under subsection (a) 
of this section a report on the determinations made by the Advisory 
Committee under section 3(d)(5) in the year covered by the report.''.

SEC. 21. FINANCING FOR GOODS MANUFACTURED IN THE UNITED STATES USED IN 
              GLOBAL TEXTILE AND APPAREL SUPPLY CHAINS.

    (a) Analysis of Textile Industry Use of Bank Products.--The Export-
Import Bank of the United States (in this section referred to as the 
``Bank'') shall conduct a study of the extent to which the products 
offered by the Bank are available and used by manufacturers in the 
United States that export goods manufactured in the United States used 
as components in global textile and apparel supply chains. In 
conducting the study, the Bank shall examine the following:
            (1) Impediments to use of Bank products by such firms.
            (2) The number of jobs in the United States that are 
        supported by the export of such component parts and the degree 
        to which access to financing will increase exports.
            (3) Specific proposals for how the Bank, using its 
        authority and products, could provide the financing, including 
        through risk-sharing with other export credit agencies and 
        other third parties.
            (4) Ways in which the Bank can take into account the full 
        global textile and apparel supply chain--in particular, the 
        ultimate purchase, and ultimate United States-based purchaser, 
        of the finished good, that would result from the supply chain--
        in making credit and risk determinations and the 
        creditworthiness of the ultimate purchaser.
            (5) Proposals for new products the Bank could offer to 
        provide the financing, including--
                    (A) the extent to which the Bank is authorized to 
                offer new products;
                    (B) the extent to which the Bank would need 
                additional authority to offer the new products; and
                    (C) specific proposals for changes in law that 
                would enable the Bank to provide such financing in 
                compliance with the credit and risk standards of the 
                Bank.
    (b) Report.--Within 180 days after the date of the enactment of 
this Act, the Bank shall submit to the Congress a report that contains 
the results of the study required by subsection (a).
    (c) Annual Reports.--Section 8 of the Export-Import Bank Act of 
1945 (12 U.S.C. 635g), as amended by sections 6, 10, and 20(b)(2) of 
this Act, is amended by adding at the end the following:
    ``(j) Textile and Apparel Supply Chain Financing.--The Bank shall 
include in its annual report to the Congress under subsection (a) of 
this section a description of the success of the Bank in providing 
effective and reasonably priced financing to the United States textile 
and apparel industry for exports of goods manufactured in the United 
States that are used as components in global textile and apparel supply 
chains in the year covered by the report, and steps the Bank has taken 
to increase the use of Bank products by such firms.''.

SEC. 22. TECHNICAL CORRECTION.

    Section 2(b)(2)(B)(ii) of the Export-Import Bank Act of 1945 (12 
U.S.C. 635(b)(2)(B)(ii)) is amended by striking subclauses (I), (IV), 
and (VII) and by redesignating subclauses (II), (III), (V), (VI), 
(VIII), and (IX) as subclauses (I) through (VI), respectively.

SEC. 23. 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 ``2011'' and inserting 
``2014''.

SEC. 24. DUAL USE EXPORTS.

    Section 4 of Public Law 109-438 (12 U.S.C. 635 note; 108 Stat. 
4376) is amended by striking ``2011'' and inserting ``2014''.

SEC. 25. EFFECTIVE DATE.

     Except as provided in section 9(b), this Act and the amendments 
made by this Act shall take effect on the earlier of June 1, 2012, or 
the date of the enactment of this Act.

            Passed the House of Representatives May 9, 2012.

            Attest:

                                                                 Clerk.
112th CONGRESS

  2d Session

                               H. R. 2072

_______________________________________________________________________

                                 AN ACT

  To reauthorize the Export-Import Bank of the United States, and for 
                            other purposes.