[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2072 Enrolled Bill (ENR)]
H.R.2072
One Hundred Twelfth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the third day of January, two thousand and twelve
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.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.