[Congressional Record Volume 161, Number 92 (Wednesday, June 10, 2015)]
[Senate]
[Pages S4054-S4056]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 1986. Ms. AYOTTE (for Mr. Kirk) proposed an amendment to the bill
H.R. 1735, to authorize appropriations for fiscal year 2016 for
military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; as follows:
At the end, add the following:
DIVISION E--EXPORT-IMPORT BANK OF THE UNITED STATES
SEC. 5001. SHORT TITLE.
This division may be cited as the ``Export-Import Bank
Reform and Reauthorization Act of 2015''.
TITLE LI--TAXPAYER PROTECTION PROVISIONS AND INCREASED ACCOUNTABILITY
SEC. 5101. REDUCTION IN AUTHORIZED AMOUNT OF OUTSTANDING
LOANS, GUARANTEES, AND INSURANCE.
Section 6(a) of the Export-Import Bank Act of 1945 (12
U.S.C. 635e(a)) is amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by striking paragraph (2) and inserting the following:
``(2) Applicable amount defined.--In this subsection, the
term `applicable amount', for each of fiscal years 2015
through 2019, means $135,000,000,000.
``(3) Freezing of lending cap if default rate is 2 percent
or more.--If the rate calculated under section 8(g)(1) is 2
percent or more for a quarter, the Bank may not exceed the
amount of loans, guarantees, and insurance outstanding on the
last day of that quarter until the rate calculated under
section 8(g)(1) is less than 2 percent.''.
SEC. 5102. INCREASE IN LOSS RESERVES.
(a) In General.--Section 6 of the Export-Import Bank Act of
1945 (12 U.S.C. 635e) is amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) by inserting after subsection (a) the following:
``(b) Reserve Requirement.--The Bank shall build to and
hold in reserve, to protect against future losses, an amount
that is not less than 5 percent of the aggregate amount of
disbursed and outstanding loans, guarantees, and insurance of
the Bank.''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on the date that is one year after the date
of the enactment of this Act.
SEC. 5103. REVIEW OF FRAUD CONTROLS.
Section 17(b) of the Export-Import Bank Reauthorization Act
of 2012 (12 U.S.C. 635a-6(b)) is amended to read as follows:
``(b) Review of Fraud Controls.--Not later than 4 years
after the date of the enactment of the Export-Import Bank
Reform and Reauthorization Act of 2015, and every 4 years
thereafter, the Comptroller General of the United States
shall--
``(1) 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 and the compliance by
the Bank with the controls, including by auditing a sample of
Bank transactions; and
``(2) submit a written report regarding the findings of the
review and providing such recommendations with respect to the
controls described in paragraph (1) as the Comptroller
General deems appropriate to--
``(A) the Committee on Banking, Housing, and Urban Affairs
and the Committee on Appropriations of the Senate; and
``(B) the Committee on Financial Services and the Committee
on Appropriations of the House of Representatives.''.
SEC. 5104. OFFICE OF ETHICS.
Section 3 of the Export-Import Bank Act of 1945 (12 U.S.C.
635a) is amended by adding at the end the following:
``(k) Office of Ethics.--
``(1) Establishment.--There is established an Office of
Ethics within the Bank, which shall oversee all ethics issues
within the Bank.
``(2) Head of office.--
``(A) In general.--The head of the Office of Ethics shall
be the Chief Ethics Officer, who shall report to the Board of
Directors.
``(B) Appointment.--Not later than 180 days after the date
of the enactment of the Export-Import Bank Reform and
Reauthorization Act of 2015, the Chief Ethics Officer shall
be--
``(i) appointed by the President of the Bank from among
persons--
``(I) with a background in law who have experience in the
fields of law and ethics; and
``(II) who are not serving in a position requiring
appointment by the President of the United States before
being appointed to be Chief Ethics Officer; and
``(ii) approved by the Board.
``(C) Designated agency ethics official.--The Chief Ethics
Officer shall serve as the designated agency ethics official
for the Bank pursuant to the Ethics in Government Act of 1978
(5 U.S.C. App. 101 et seq.).
``(3) Duties.--The Office of Ethics has jurisdiction over
all employees of, and ethics matters relating to, the Bank.
With respect to employees of the Bank, the Office of Ethics
shall--
``(A) recommend administrative actions to establish or
enforce standards of official conduct;
``(B) refer to the Office of the Inspector General of the
Bank alleged violations of--
``(i) the standards of ethical conduct applicable to
employees of the Bank under parts 2635 and 6201 of title 5,
Code of Federal Regulations;
``(ii) the standards of ethical conduct established by the
Chief Ethics Officer; and
``(iii) any other laws, rules, or regulations governing the
performance of official duties or the discharge of official
responsibilities that are applicable to employees of the
Bank;
``(C) report to appropriate Federal or State authorities
substantial evidence of a violation of any law applicable to
the performance of official duties that may have been
disclosed to the Office of Ethics; and
``(D) render advisory opinions regarding the propriety of
any current or proposed conduct of an employee or contractor
of the Bank, and issue general guidance on such matters as
necessary.''.
SEC. 5105. CHIEF RISK OFFICER.
Section 3 of the Export-Import Bank Act of 1945 (12 U.S.C.
635a), as amended by section 5104, is further amended by
adding at the end the following:
``(l) Chief Risk Officer.--
``(1) In general.--There shall be a Chief Risk Officer of
the Bank, who shall--
``(A) oversee all issues relating to risk within the Bank;
and
``(B) report to the President of the Bank.
``(2) Appointment.--Not later than 180 days after the date
of the enactment of the Export-Import Bank Reform and
Reauthorization Act of 2015, the Chief Risk Officer shall
be--
``(A) appointed by the President of the Bank from among
persons--
``(i) with a demonstrated ability in the general management
of, and knowledge of and extensive practical experience in,
financial risk evaluation practices in large governmental or
business entities; and
``(ii) who are not serving in a position requiring
appointment by the President of the United States before
being appointed to be Chief Risk Officer; and
``(B) approved by the Board.
``(3) Duties.--The duties of the Chief Risk Officer are--
``(A) to be responsible for all matters related to managing
and mitigating all risk to which the Bank is exposed,
including the programs and operations of the Bank;
``(B) to establish policies and processes for risk
oversight, the monitoring of management compliance with risk
limits, and the management of risk exposures and risk
controls across the Bank;
``(C) to be responsible for the planning and execution of
all Bank risk management activities, including policies,
reporting, and systems to achieve strategic risk objectives;
``(D) to develop an integrated risk management program that
includes identifying, prioritizing, measuring, monitoring,
and managing internal control and operating risks and other
identified risks;
``(E) to ensure that the process for risk assessment and
underwriting for individual transactions considers how each
such transaction considers the effect of the transaction on
the concentration of exposure in the overall portfolio of the
Bank, taking into account fees, collateralization, and
historic default rates; and
``(F) to review the adequacy of the use by the Bank of
qualitative metrics to assess the risk of default under
various scenarios.''.
SEC. 5106. RISK MANAGEMENT COMMITTEE.
(a) In General.--Section 3 of the Export-Import Bank Act of
1945 (12 U.S.C. 635a), as amended by sections 5104 and 5105,
is further amended by adding at the end the following:
``(m) Risk Management Committee.--
``(1) Establishment.--There is established a management
committee to be known as the `Risk Management Committee'.
``(2) Membership.--The membership of the Risk Management
Committee shall be the members of the Board of Directors,
with the President and First Vice President of the Bank
serving as ex officio members.
``(3) Duties.--The duties of the Risk Management Committee
shall be--
``(A) to oversee, in conjunction with the Office of the
Chief Financial Officer of the Bank--
``(i) periodic stress testing on the entire Bank portfolio,
reflecting different market, industry, and macroeconomic
scenarios, and consistent with common practices of commercial
and multilateral development banks; and
``(ii) the monitoring of industry, geographic, and obligor
exposure levels; and
``(B) to review all required reports on the default rate of
the Bank before submission to Congress under section 8(g).''.
(b) Termination of Audit Committee.--Not later than 180
days after the date of the enactment of this Act, the Board
of Directors of the Export-Import Bank of the United
[[Page S4055]]
States shall revise the bylaws of the Bank to terminate the
Audit Committee established by section 7 of the bylaws.
SEC. 5107. INDEPENDENT AUDIT OF BANK PORTFOLIO.
(a) Audit.--The Inspector General of the Export-Import Bank
of the United States shall conduct an audit or evaluation of
the portfolio risk management procedures of the Bank,
including a review of the implementation by the Bank of the
duties assigned to the Chief Risk Officer under section 3(l)
of the Export-Import Bank Act of 1945, as amended by section
5105.
(b) Report.--Not later than one year after the date of the
enactment of this Act, and not less frequently than every 3
years thereafter, the Inspector General 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 written report containing all findings
and determinations made in carrying out subsection (a).
SEC. 5108. PILOT PROGRAM FOR REINSURANCE.
(a) In General.--Notwithstanding any provision of the
Export-Import Bank Act of 1945 (12 U.S.C. 635 et seq.), the
Export-Import Bank of the United States (in this section
referred to as the ``Bank'') may establish a pilot program
under which the Bank may enter into contracts and other
arrangements to share risks associated with the provision of
guarantees, insurance, or credit, or the participation in the
extension of credit, by the Bank under that Act.
(b) Limitations on Amount of Risk-Sharing.--
(1) Per contract or other arrangement.--The aggregate
amount of liability the Bank may transfer through risk-
sharing pursuant to a contract or other arrangement entered
into under subsection (a) may not exceed $1,000,000,000.
(2) Per year.--The aggregate amount of liability the Bank
may transfer through risk-sharing during a fiscal year
pursuant to contracts or other arrangements entered into
under subsection (a) during that fiscal year may not exceed
$10,000,000,000.
(c) Annual Reports.--Not later than one year after the date
of the enactment of this Act, and annually thereafter through
2019, the Bank shall submit to Congress a written report that
contains a detailed analysis of the use of the pilot program
carried out under subsection (a) during the year preceding
the submission of the report.
(d) Rule of Construction.--Nothing in this section shall be
construed to affect, impede, or revoke any authority of the
Bank.
(e) Termination.--The pilot program carried out under
subsection (a) shall terminate on September 30, 2019.
TITLE LII--PROMOTION OF SMALL BUSINESS EXPORTS
SEC. 5201. INCREASE IN SMALL BUSINESS LENDING REQUIREMENTS.
(a) In General.--Section 2(b)(1)(E)(v) of the Export-Import
Bank Act of 1945 (12 U.S.C. 635(b)(1)(E)(v)) is amended by
striking ``20 percent'' and inserting ``25 percent''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply with respect to fiscal year 2016 and each fiscal
year thereafter.
SEC. 5202. REPORT ON PROGRAMS FOR SMALL AND MEDIUM-SIZED
BUSINESSES.
(a) In General.--Section 8 of the Export-Import Bank Act of
1945 (12 U.S.C. 635g) is amended by adding at the end the
following:
``(k) Report on Programs for Small and Medium-Sized
Businesses.--The Bank shall include in its annual report to
Congress under subsection (a) a report on the programs of the
Bank for United States businesses with less than $250,000,000
in annual sales.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply with respect to the report of the Export-Import
Bank of the United States submitted to Congress under section
8 of the Export-Import Bank Act of 1945 (12 U.S.C. 635g) for
the first year that begins after the date of the enactment of
this Act.
TITLE LIII--MODERNIZATION OF OPERATIONS
SEC. 5301. ELECTRONIC PAYMENTS AND DOCUMENTS.
Section 2(b)(1) of the Export-Import Bank Act of 1945 (12
U.S.C. 635(b)(1)) is amended by adding at the end the
following:
``(M) Not later than 2 years after the date of the
enactment of the Export-Import Bank Reform and
Reauthorization Act of 2015, the Bank shall implement
policies--
``(i) to accept electronic documents with respect to
transactions whenever possible, including copies of bills of
lading, certifications, and compliance documents, in such
manner so as not to undermine any potential civil or criminal
enforcement related to the transactions; and
``(ii) to accept electronic payments in all of its
programs.''.
SEC. 5302. REAUTHORIZATION OF INFORMATION TECHNOLOGY
UPDATING.
Section 3(j) of the Export-Import Act of 1945 (12 U.S.C.
635a(j)) is amended--
(1) in paragraph (1), in the matter preceding subparagraph
(A), by striking ``2012, 2013, and 2014'' and inserting
``2015 through 2019'';
(2) in paragraph (2)(B), by striking ``(I) the funds'' and
inserting ``(i) the funds''; and
(3) in paragraph (3), by striking ``2012, 2013, and 2014''
and inserting ``2015 through 2019''.
TITLE LIV--GENERAL PROVISIONS
SEC. 5401. EXTENSION OF AUTHORITY.
(a) In General.--Section 7 of the Export-Import Bank Act of
1945 (12 U.S.C. 635f) is amended by striking ``2014'' and
inserting ``2019''.
(b) Dual-Use Exports.--Section 1(c) of Public Law 103-428
(12 U.S.C. 635 note) is amended by striking ``September 30,
2014'' and inserting ``the date on which the authority of the
Export-Import Bank of the United States expires under section
7 of the Export-Import Bank Act of 1945 (12 U.S.C. 635f)''.
(c) 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 ``September
30, 2014'' and inserting ``the date on which the authority of
the Bank expires under section 7''.
(d) Effective Date.--The amendments made by this section
shall take effect on the earlier of the date of the enactment
of this Act or June 30, 2015.
SEC. 5402. CERTAIN UPDATED LOAN TERMS AND AMOUNTS.
(a) Loan Terms for Medium-Term Financing.--Section
2(a)(2)(A) of the Export-Import Bank Act of 1945 (12 U.S.C.
635(a)(2)(A)) is amended--
(1) in clause (i), by striking ``; and'' and inserting a
semicolon; and
(2) by adding at the end the following:
``(iii) with principal amounts of not more than
$25,000,000; and''.
(b) Competitive Opportunities Relating to Insurance.--
Section 2(d)(2) of the Export-Import Bank Act of 1945 (12
U.S.C. 635(d)(2)) is amended by striking ``$10,000,000'' and
inserting ``$25,000,000''.
(c) Export Amounts for Small Business Loans.--Section
3(g)(3) of the Export-Import Bank Act of 1945 (12 U.S.C.
635a(g)(3)) is amended by striking ``$10,000,000'' and
inserting ``$25,000,000''.
(d) Consideration of Environmental Effects.--Section
11(a)(1)(A) of the Export-Import Bank Act of 1945 (12 U.S.C.
635i-5(a)(1)(A)) is amended by striking ``$10,000,000 or
more'' and inserting the following: ``$25,000,000 (or, if
less than $25,000,000, the threshold established pursuant to
international agreements, including the Common Approaches for
Officially Supported Export Credits and Environmental and
Social Due Diligence, as adopted by the Organisation for
Economic Co-operation and Development Council on June 28,
2012, and the risk-management framework adopted by financial
institutions for determining, assessing, and managing
environmental and social risk in projects (commonly referred
to as the `Equator Principles')) or more''.
(e) Effective Date.--The amendments made by this section
shall apply with respect to fiscal year 2016 and each fiscal
year thereafter.
TITLE LV--OTHER MATTERS
SEC. 5501. PROHIBITION ON DISCRIMINATION BASED ON INDUSTRY.
Section 2 of the Export-Import Bank Act of 1945 (6 U.S.C.
635 et seq.) is amended by adding at the end the following:
``(k) Prohibition on Discrimination Based on Industry.--
``(1) In general.--Except as provided in this Act, the Bank
may not--
``(A) deny an application for financing based solely on the
industry, sector, or business that the application concerns;
or
``(B) promulgate or implement policies that discriminate
against an application based solely on the industry, sector,
or business that the application concerns.
``(2) Applicability.--The prohibitions under paragraph (1)
apply only to applications for financing by the Bank for
projects concerning the exploration, development, production,
or export of energy sources and the generation or
transmission of electrical power, or combined heat and power,
regardless of the energy source involved.''.
SEC. 5502. NEGOTIATIONS TO END EXPORT CREDIT FINANCING.
(a) In General.--Section 11 of the Export-Import Bank
Reauthorization Act of 2012 (12 U.S.C. 635a-5) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by striking
``Secretary of the Treasury (in this section referred to as
the `Secretary')'' and inserting ``President''; and
(B) in paragraph (1)--
(i) by striking ``(OECD)'' and inserting ``(in this section
referred to as the `OECD')''; and
(ii) by striking ``ultimate goal of eliminating'' and
inserting ``possible goal of eliminating, before the date
that is 10 years after the date of the enactment of the
Export-Import Bank Reform and Reauthorization Act of 2015,'';
(2) in subsection (b), by striking ``Secretary'' each place
it appears and inserting ``President''; and
(3) by adding at the end the following:
``(c) Report on Strategy.--Not later than 180 days after
the date of the enactment of the Export-Import Bank Reform
and Reauthorization Act of 2015, the President shall submit
to Congress a proposal, and a strategy for achieving the
proposal, that the United States Government will pursue with
other major exporting countries, including OECD members and
non-OECD members, to eliminate over a period of not more than
10 years subsidized export-financing programs, tied aid,
export credits, and all other forms of government-supported
export subsidies.
``(d) Negotiations With Non-OECD Members.--The President
shall initiate and pursue negotiations with countries that
are not OECD members to bring those countries into a
multilateral agreement establishing rules and limitations on
officially supported export credits.
[[Page S4056]]
``(e) Annual Reports on Progress of Negotiations.--Not
later than 180 days after the date of the enactment of the
Export-Import Bank Reform and Reauthorization Act of 2015,
and annually thereafter through calendar year 2019, the
President 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 progress of any negotiations described in subsection
(d).''.
(b) Effective Date.--The amendments made by paragraphs (1)
and (2) of subsection (a) shall apply with respect to reports
required to be submitted under section 11(b) of the Export-
Import Bank Reauthorization Act of 2012 (12 U.S.C. 635a-5(b))
after the date of the enactment of this Act.
SEC. 5503. STUDY OF FINANCING FOR INFORMATION AND
COMMUNICATIONS TECHNOLOGY SYSTEMS.
(a) Analysis of Information and Communications Technology
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 companies that
export information and communications technology services and
related goods.
(b) Elements.--In conducting the study required by
subsection (a), the Bank shall examine the following:
(1) The number of jobs in the United States that are
supported by the export of information and communications
technology services and related goods, and the degree to
which access to financing will increase exports of such
services and related goods.
(2) The reduction in the financing by the Bank of exports
of information and communications technology services from
2003 through 2014.
(3) The activities of foreign export credit agencies to
facilitate the export of information and communications
technology services and related goods.
(4) Specific proposals for how the Bank could provide
additional financing for the exportation of information and
communications technology services and related goods through
risk-sharing with other export credit agencies and other
third parties.
(5) Proposals for new products the Bank could offer to
provide financing for exports of information and
communications technology services and related goods,
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 new products to meet the needs of the
information and communications technology industry;
(C) specific proposals for changes in law that would enable
the Bank to provide increased financing for exports of
information and communications technology services and
related goods in compliance with the credit and risk
standards of the Bank;
(D) specific proposals that would enable the Bank to
provide increased outreach to the information and
communications technology industry about the products the
Bank offers; and
(E) specific proposals for changes in law that would enable
the Bank to provide the financing to build information and
communications technology infrastructure, in compliance with
the credit and risk standards of the Bank, to allow for
market access opportunities for United States information and
communications technology companies to provide services on
the infrastructure being financed by the Bank.
(c) Report.--Not later than 180 days after the date of the
enactment of this Act, the Bank shall submit to Congress a
report that contains the results of the study required by
subsection (a).
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