[Congressional Record Volume 152, Number 125 (Friday, September 29, 2006)]
[Senate]
[Pages S10796-S10798]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


             EXPORT-IMPORT BANK REAUTHORIZATION ACT OF 2006

  Mr. FRIST. I ask unanimous consent the Senate proceed to the 
immediate consideration of Calendar No. 639, S. 3938.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 3938) to reauthorize the Export-Import Bank of 
     the United States.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. FRIST. I ask unanimous consent the amendment at the desk be 
agreed to, the bill as amended be read a third time and passed, the 
motion to reconsider be laid on the table, and any statements be 
printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 5117) was agreed to, as follows:

(Purpose: To eliminate the requirement that the Bank seek comments from 
                  the International Trade Commission)

       On page 14, lines 8 and 9, strike ``the International Trade 
     Commission,''.

  The bill (S. 3938), as amended, was ordered to be engrossed for a 
third reading, was read the third time, and passed, as follows:

                                S. 3938

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Export-Import Bank 
     Reauthorization Act of 2006''.

     SEC. 2. EXTENSION OF AUTHORITY.

       Section 7 of the Export-Import Bank Act of 1945 (12 U.S.C. 
     635f) is amended by striking ``2006'' and inserting ``2011''.

     SEC. 3. SUB-SAHARAN AFRICA ADVISORY COMMITTEE.

       Section 2(b)(9)(B)(iii) of the Export-Import Bank Act of 
     1945 (12 U.S.C. 635(b)(9)(B)(iii)) is amended by striking 
     ``2006'' and inserting ``2011''.

     SEC. 4. EXTENSION OF AUTHORITY TO PROVIDE FINANCING FOR THE 
                   EXPORT OF NONLETHAL DEFENSE ARTICLES OR 
                   SERVICES THE PRIMARY END USE OF WHICH WILL BE 
                   FOR CIVILIAN PURPOSES.

       Section 1(c) of Public Law 103-428 (12 U.S.C. 635 note; 108 
     Stat. 4376) is amended by striking ``2001'' and inserting 
     ``2011''.

     SEC. 5. DESIGNATION OF SENSITIVE COMMERCIAL SECTORS AND 
                   PRODUCTS.

       Section 2(e) of the Export-Import Bank Act of 1945 (12 
     U.S.C. 635(e)) is amended by adding at the end the following 
     new paragraph:
       ``(5) Designation of sensitive commercial sectors and 
     products.--Not later than 120 days after the date of the 
     enactment of this Act, the Export-Import Bank of the United 
     States shall submit a list to the Committee on Banking, 
     Housing, and Urban Affairs of the Senate and the Committee on 
     Financial Services of the House of Representatives, which 
     designates sensitive commercial sectors and products with 
     respect to which the provision of financing support by the 
     Bank is deemed unlikely by the President of the Bank due to 
     the significant potential for a determination that such 
     financing support would result in an adverse economic impact 
     on the United States. The President of the Bank shall review 
     on an annual basis thereafter the list of sensitive 
     commercial sectors and products and the Bank shall submit an 
     updated list to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives of such sectors and 
     products.''.

     SEC. 6. INCREASING EXPORTS BY SMALL BUSINESS.

       (a) In General.--Section 3 of the Export-Import Bank Act of 
     1945 (12 U.S.C. 635a) is amended by adding at the end the 
     following:
       ``(f) Small Business Division.--
       ``(1) Establishment.--There is established a Small Business 
     Division (in this subsection referred to as the `Division') 
     within the Bank in order to--
       ``(A) carry out the provisions of subparagraphs (E) and (I) 
     of section 2(b)(1) relating to outreach, feedback, product 
     improvement, and transaction advocacy for small business 
     concerns;
       ``(B) advise and seek feedback from small business concerns 
     on the opportunities and benefits for small business concerns 
     in the financing products offered by the Bank, with 
     particular emphasis on conducting outreach, enhancing the 
     tailoring of products to small business needs and increasing 
     loans to small business concerns;
       ``(C) maintain liaison with the Small Business 
     Administration and other departments and agencies in matters 
     affecting small business concerns; and
       ``(D) provide oversight of the development, implementation, 
     and operation of technology improvements to strengthen small 
     business outreach, including the technology improvement 
     required by section 2(b)(1)(E)(x).
       ``(2) Management.--The President of the Bank shall appoint 
     an officer, who shall rank not lower than senior vice 
     president and whose sole executive function shall be to 
     manage the Division. The officer shall--
       ``(A) have substantial recent experience in financing 
     exports by small business concerns; and
       ``(B) advise the Board, particularly the director appointed 
     under section 3(c)(8)(B) to represent the interests of small 
     business, on matters of interest to, and concern for, small 
     business.
       ``(3) Staff.--
       ``(A) Dedicated personnel.--The President of the Bank shall 
     ensure that each operating division within the Bank has staff 
     that

[[Page S10797]]

     specializes in processing transactions that primarily benefit 
     small business concerns.
       ``(B) Responsibilities.--The small business specialists 
     shall be involved in all aspects of processing applications 
     for loans, guarantees, and insurance to support exports by 
     small business concerns, including the approval or 
     disapproval, or staff recommendations of approval or 
     disapproval, as applicable, of such applications. In carrying 
     out these responsibilities, the small business specialists 
     shall consider the unique business requirements of small 
     businesses and shall develop exporter performance criteria 
     tailored to small business exporters.
       ``(C) Approval authority.--In an effort to maximize the 
     speed and efficiency with which the Bank processes 
     transactions primarily benefitting small business concerns, 
     the small business specialists shall be authorized to approve 
     applications for working capital loans and guarantees, and 
     insurance in accordance with policies and procedures 
     established by the Board.
       ``(D) Identification.--The Bank shall prominently identify 
     the small business specialists on its website and in 
     promotional material.
       ``(E) Employee evaluations.--The evaluation of staff 
     designated by the President of the Bank under subparagraph 
     (A), including annual reviews of performance of duties 
     related to transactions in support of exports by small 
     business concerns, and any resulting recommendations for 
     salary adjustments, promotions, and other personnel actions, 
     shall address the criteria established pursuant to subsection 
     (g)(2)(B)(iii) and shall be conducted by the manager of the 
     relevant operating division following consultation with the 
     senior vice president of the Division.
       ``(F) Staff recommendations.--Staff recommendations of 
     denial or withdrawal for medium-term applications, exporter 
     held multi-buyer policies, single buyer policies, and working 
     capital applications processed by the Bank shall be 
     transmitted to the Senior Vice President of the Division not 
     later than 2 business days before a final decision.
       ``(4) Rule of interpretation.--Nothing in this Act shall be 
     construed to prevent the delegation to the Division of any 
     authority necessary to carry out subparagraphs (E) and (I) of 
     section 2(b)(1).
       ``(g) Small Business Committee.--
       ``(1) Establishment.--There is established a management 
     committee to be known as the `Small Business Committee'.
       ``(2) Purpose and duties.--
       ``(A) Purpose.--The purpose of the Small Business Committee 
     shall be to coordinate the Bank's initiatives and policies 
     with respect to small business concerns, including the timely 
     processing and underwriting of transactions involving direct 
     exports by small business concerns, and the development and 
     coordination of efforts to implement new or enhanced Bank 
     products and services pertaining to small business concerns.
       ``(B) Duties.--The duties of the Small Business Committee 
     shall be determined by the President of the Bank and shall 
     include the following:
       ``(i) Assisting in the development of the Bank's small 
     business strategic plans, including the Bank's plans for 
     carrying out section 2(b)(1)(E) (v) and (x), and measuring 
     and reporting in writing to the President of the Bank, at 
     least once a year, on the Bank's progress in achieving the 
     goals set forth in the plans.
       ``(ii) Evaluating and reporting in writing to the President 
     of the Bank, at least once a year, with respect to--

       ``(I) the performance of each operating division of the 
     Bank in serving small business concerns;
       ``(II) the impact of processing and underwriting standards 
     on transactions involving direct exports by small business 
     concerns; and
       ``(III) the adequacy of the staffing and resources of the 
     Small Business Division.

       ``(iii) Establishing criteria for evaluating the 
     performance of staff designated by the President of the Bank 
     under section 3(f)(3)(A).
       ``(iv) Coordinating with other United States Government 
     departments and agencies the provision of services to small 
     business concerns.
       ``(3) Composition.--
       ``(A) Chairperson.--The Chairperson of the Small Business 
     Committee shall be the senior vice president of the Small 
     Business Division. The Chairperson shall have the authority 
     to call meetings of the Small Business Committee, set the 
     agenda for Committee meetings, and request policy 
     recommendations from the Committee's members.
       ``(B) Other members.--Except as otherwise provided in this 
     subsection, the President of the Bank shall determine the 
     composition of the Small Business Committee, and shall 
     appoint or remove the members of the Small Business 
     Committee. In making such appointments, the President of the 
     Bank shall ensure that the Small Business Committee is 
     comprised of--
       ``(i) the senior managing officers responsible for 
     underwriting and processing transactions; and
       ``(ii) other officers and employees of the Bank with 
     responsibility for outreach to small business concerns and 
     underwriting and processing transactions that involve small 
     business concerns.
       ``(4) Reporting.--The Chairperson shall provide to the 
     President of the Bank minutes of each meeting of the Small 
     Business Committee, including any recommendations by the 
     Committee or its individual members.''.
       (b) Enhance Delegated Loan Authority for Medium Term 
     Transactions.--
       (1) In general.--The Export-Import Bank of the United 
     States shall seek to expand the exercise of authority under 
     section 2(b)(1)(E)(vii) of the Export-Import Bank Act of 1945 
     (6 U.S.C. 635(b)(1)(E)(vii)) with respect to medium term 
     transactions for small business concerns.
       (2) Conforming amendment.--Section 2(b)(1)(E)(vii)(III) of 
     the Export-Import Bank Act of 1945 (12 U.S.C. 
     635(b)(1)(E)(vii)(III)) is amended by inserting ``or other 
     financing institutions or entities'' after ``consortia''.
       (3) Deadline.--Not later than 180 days after the date of 
     the enactment of this Act, the Export-Import Bank of the 
     United States shall make available lines of credit and 
     guarantees to carry out section 2(b)(1)(E)(vii) of the 
     Export-Import Bank Act of 1945 pursuant to policies and 
     procedures established by the Board of Directors of the 
     Export-Import Bank of the United States.

     SEC. 7. ANTI-CIRCUMVENTION.

       Section 2(e) of the Export-Import Bank Act of 1945 (12 
     U.S.C. 635(e)) is amended--
       (1) by inserting after paragraph (1), the following flush 
     paragraph:

     ``In making the determination under subparagraph (B), the 
     Bank shall determine whether the facility that would benefit 
     from the extension of a credit or guarantee is reasonably 
     likely to produce commodities in addition to or other than 
     the commodity specified in the application and whether the 
     production of the additional commodities may cause 
     substantial injury to United States producers of the same, or 
     a similar or competing, commodity.'';
       (2) in paragraph (2), by adding at the end the following:
       ``(E) Anti-circumvention.--The Bank shall not provide a 
     loan or guarantee if the Bank determines that providing the 
     loan or guarantee will facilitate circumvention of a trade 
     law order or determination referred to in subparagraph 
     (A).''; and
       (3) by adding at the end the following:
       ``(5) Financial threshold determinations.--For purposes of 
     determining whether a proposed transaction exceeds a 
     financial threshold under this subsection or under the 
     procedures or rules of the Bank, the Bank shall aggregate the 
     dollar amount of the proposed transaction and the dollar 
     amounts of all loans and guarantees, approved by the Bank in 
     the preceding 24-month period, that involved the same foreign 
     entity and substantially the same product to be produced.''.

     SEC. 8. TRANSPARENCY.

       (a) In General.--Section 2(e) of the Export-Import Bank Act 
     of 1945 (12 U.S.C. 635(e)), as amended by section 7 of this 
     Act, is amended by adding at the end the following:
       ``(6) Procedures to reduce adverse effects of loans and 
     guarantees on industries and employment in united states.--
       ``(A) Consideration of economic effects of proposed 
     transactions.--If, in making a determination under this 
     paragraph with respect to a loan or guarantee, the Bank 
     conducts a detailed economic impact analysis or similar 
     study, the analysis or study, as the case may be, shall 
     include consideration of--
       ``(i) the factors set forth in subparagraphs (A) and (B) of 
     paragraph (1); and
       ``(ii) the views of the public and interested parties.
       ``(B) Notice and comment requirements.--
       ``(i) In general.--If, in making a determination under this 
     subsection with respect to a loan or guarantee, the Bank 
     intends to conduct a detailed economic impact analysis or 
     similar study, the Bank shall publish in the Federal Register 
     a notice of the intent, and provide a period of not less than 
     14 days (which, on request by any affected party, shall be 
     extended to a period of not more than 30 days) for the 
     submission to the Bank of comments on the economic effects of 
     the provision of the loan or guarantee, including comments on 
     the factors set forth in subparagraphs (A) and (B) of 
     paragraph (1). In addition, the Bank shall seek comments on 
     the effects from the Department of Commerce, the 
     International Trade Commission, the Office of Management and 
     Budget, the Committee on Banking, Housing, and Urban Affairs 
     of the Senate, and the Committee on Financial Services of the 
     House of Representatives.
       ``(ii) Content of notice.--The notice shall include 
     appropriate, nonproprietary information about--

       ``(I) the country to which the goods involved in the 
     transaction will be shipped;
       ``(II) the type of goods being exported;
       ``(III) the amount of the loan or guarantee involved;
       ``(IV) the goods that would be produced as a result of the 
     provision of the loan or guarantee;
       ``(V) the amount of increased production that will result 
     from the transaction;
       ``(VI) the potential sales market for the resulting goods; 
     and
       ``(VII) the value of the transaction.

       ``(iii) Procedure regarding materially changed 
     applications.--

       ``(I) In general.--If a material change is made to an 
     application for a loan or guarantee from the Bank after a 
     notice with respect to the intent described in clause (i) is 
     published under this subparagraph, the Bank

[[Page S10798]]

     shall publish in the Federal Register a revised notice of the 
     intent, and shall provide for a comment period, as provided 
     in clauses (i) and (ii).
       ``(II) Material change defined.--In subclause (I), the term 
     `material change', with respect to an application, includes--

       ``(aa) a change of at least 25 percent in the amount of a 
     loan or guarantee requested in the application; and
       ``(bb) a change in the principal product to be produced as 
     a result of any transaction that would be facilitated by the 
     provision of the loan or guarantee.
       ``(C) Requirement to address views of adversely affected 
     persons.--Before taking final action on an application for a 
     loan or guarantee to which this section applies, the staff of 
     the Bank shall provide in writing to the Board of Directors 
     the views of any person who submitted comments pursuant to 
     subparagraph (B).
       ``(D) Publication of conclusions.--Within 30 days after a 
     party affected by a final decision of the Board of Directors 
     with respect to a loan or guarantee makes a written request 
     therefor, the Bank shall provide to the affected party a non-
     confidential summary of the facts found and conclusions 
     reached in any detailed economic impact analysis or similar 
     study conducted pursuant to subparagraph (B) with respect to 
     the loan or guarantee, that were submitted to the Board of 
     Directors.
       ``(E) Rule of interpretation.--This paragraph shall not be 
     construed to make subchapter II of chapter 5 of title 5, 
     United States Code, applicable to the Bank.
       ``(F) Regulations.--The Bank shall implement such 
     regulations and procedures as may be appropriate to carry out 
     this paragraph.''.
       (b) Conforming Amendment.--Section 2(e)(2)(C) of such Act 
     (12 U.S.C. 635(e)(2)(C)) is amended by inserting ``of not 
     less than 14 days (which, on request of any affected party, 
     shall be extended to a period of not more than 30 days)'' 
     after ``comment period''.

     SEC. 9. AGGREGATE LOAN, GUARANTEE, AND INSURANCE AUTHORITY.

       Subparagraph (E) of section 6(a)(2) of the Export-Import 
     Bank Act of 1945 (12 U.S.C. 635e(a)(2)) is amended to read as 
     follows:
       ``(E) during fiscal year 2006, and each fiscal year 
     thereafter through fiscal 2011.''.

     SEC. 10. TIED AID CREDIT PROGRAM.

       Section 10(b)(5)(B)(ii) of the Export-Import Bank Act of 
     1945 (12 U.S.C. 635i-3(b)(5)(B)(ii)) is amended to read as 
     follows:
       ``(ii) Process.--In handling individual applications 
     involving the use or potential use of the Tied Aid Credit 
     Fund the following process shall exclusively apply pursuant 
     to subparagraph (A):

       ``(I) The Bank shall process an application for tied aid in 
     accordance with the principles and standards developed 
     pursuant to subparagraph (A) and clause (i) of this 
     subparagraph.
       ``(II) Twenty days prior to the scheduled meeting of the 
     Board of Directors at which an application will be considered 
     (unless the Bank determines that an earlier discussion is 
     appropriate based on the facts of a particular financing), 
     the Bank shall brief the Secretary on the application and 
     deliver to the Secretary such documents, information, or data 
     as may reasonably be necessary to permit the Secretary to 
     review the application to determine if the application 
     complies with the principles and standards developed pursuant 
     to subparagraph (A) and clause (i) of subparagraph (B).
       ``(III) The Secretary may request a single postponement of 
     the Board of Directors' consideration of the application for 
     up to 14 days to allow the Secretary to submit to the Board 
     of Directors a memorandum objecting to the application.
       ``(IV) Case-by-case decisions on whether to approve the use 
     of the Tied Aid Credit Fund shall be made by the Board of 
     Directors, except that the approval of the Board of Directors 
     (or a commitment letter based on that approval) shall not 
     become final (except as provided in subclause (V)), if the 
     Secretary indicates to the President of the Bank in writing 
     the Secretary's intention to appeal the decision of the Board 
     of Directors to the President of the United States and makes 
     the appeal in writing not later than 20 days after the 
     meeting at which the Board of Directors considered the 
     application.
       ``(V) The Bank shall not grant final approval of an 
     application for any tied aid credit (or a commitment letter 
     based on that approval) if the President of the United 
     States, after consulting with the President of the Bank and 
     the Secretary, determines within 30 days of an appeal by the 
     Secretary under subclause (IV) that the extension of the tied 
     aid credit would materially impede achieving the purposes 
     described in subsection (a)(6). If no such Presidential 
     determination is made during the 30-day period, the approval 
     by the Bank of the application (or related commitment letter) 
     that was the subject of such appeal shall become final.''.

     SEC. 11. PROHIBITION ON ASSISTANCE TO DEVELOP OR PROMOTE 
                   CERTAIN RAILWAY CONNECTIONS AND RAILWAY-RELATED 
                   CONNECTIONS.

       Section 2(b) of the Export-Import Act of 1945 (12 U.S.C. 
     635(b)) is amended by adding at the end the following new 
     paragraph:
       ``(13) Prohibition on Assistance To Develop or Promote 
     Certain Railway Connections and Railway-Related 
     Connections.--The Bank shall not guarantee, insure, or extend 
     (or participate in the extension of) credit in connection 
     with the export of any good or service relating to the 
     development or promotion of any railway connection or 
     railway-related connection that does not traverse or connect 
     with Armenia and does traverse or connect Baku, Azerbaijan, 
     Tbilisi, Georgia, and Kars, Turkey.''.

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