[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2072 Placed on Calendar Senate (PCS)]
Calendar No. 396
112th CONGRESS
2d Session
H. R. 2072
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 9, 2012
Received; read twice and placed on the calendar
_______________________________________________________________________
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:
KAREN L. HAAS,
Clerk.
Calendar No. 396
112th CONGRESS
2d Session
H. R. 2072
_______________________________________________________________________
AN ACT
To reauthorize the Export-Import Bank of the United States, and for
other purposes.
_______________________________________________________________________
May 9, 2012
Received; read twice and placed on the calendar