Congressional Record, Volume 164 Issue 120 (Tuesday, July 17, 2018)

[Congressional Record Volume 164, Number 120 (Tuesday, July 17, 2018)]
[House]
[Pages H6320-H6333]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

BETTER UTILIZATION OF INVESTMENTS LEADING TO DEVELOPMENT ACT OF 2018

Mr. ROYCE of California. Mr. Speaker, I move to suspend the rules and
pass the bill (H.R. 5105) to establish the United States International
Development Finance Corporation, and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:

H.R. 5105

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 ``Better
Utilization of Investments Leading to Development Act of
2018'' or the ``BUILD Act of 2018''.
(b) Table of Contents.--The table of contents for this Act
is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

TITLE I--ESTABLISHMENT

Sec. 101. Statement of policy.
Sec. 102. United States International Development Finance Corporation.
Sec. 103. Management of Corporation.
Sec. 104. Inspector General of the Corporation.
Sec. 105. Independent accountability mechanism.

TITLE II--AUTHORITIES

Sec. 201. Authorities relating to provision of support.

[[Page H6321]]

Sec. 202. Terms and conditions.
Sec. 203. Payment of losses.
Sec. 204. Termination.

TITLE III--ADMINISTRATIVE AND GENERAL PROVISIONS

Sec. 301. Operations.
Sec. 302. Corporate powers.
Sec. 303. Maximum contingent liability.
Sec. 304. Corporate funds.
Sec. 305. Coordination with other development agencies.

TITLE IV--MONITORING, EVALUATION, AND REPORTING

Sec. 401. Establishment of risk and audit committees.
Sec. 402. Performance measures, evaluation, and learning.
Sec. 403. Annual report.
Sec. 404. Publicly available project information.
Sec. 405. Engagement with investors.
Sec. 406. Notification of support to be provided by the Corporation.

TITLE V--CONDITIONS, RESTRICTIONS, AND PROHIBITIONS

Sec. 501. Limitations and preferences.
Sec. 502. Additionality and avoidance of market distortion.
Sec. 503. Prohibition on support in sanctioned countries and with
sanctioned persons.
Sec. 504. Penalties for misrepresentation, fraud, and bribery.

TITLE VI--TRANSITIONAL PROVISIONS

Sec. 601. Definitions.
Sec. 602. Reorganization plan.
Sec. 603. Transfer of functions.
Sec. 604. Termination of Overseas Private Investment Corporation and
other superceded authorities.
Sec. 605. Transitional authorities.
Sec. 606. Savings provisions.
Sec. 607. Other terminations.
Sec. 608. Incidental transfers.
Sec. 609. Reference.
Sec. 610. Conforming amendments.

SEC. 2. DEFINITIONS.

In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Relations and the Committee on
Appropriations of the Senate; and
(B) the Committee on Foreign Affairs and the Committee on
Appropriations of the House of Representatives.
(2) Less developed country.--The term ``less developed
country'' means a country with a low-income economy, lower-
middle-income economy, or upper-middle-income economy, as
defined by the International Bank for Reconstruction and
Development and the International Development Association
(collectively referred to as the ``World Bank'').
(3) Predecessor authority.--The term ``predecessor
authority'' means authorities repealed by title VI.
(4) Qualifying sovereign entity.--The term ``qualifying
sovereign entity'' means--
(A) any agency or instrumentality of a foreign state (as
defined in section 1603 of title 28, United States Code) that
has a purpose that is similar to the purpose of the
Corporation as described in section 102(b); or
(B) any international financial institution (as defined in
section 1701(c) of the International Financial Institutions
Act (22 U.S.C. 262r(c))).

TITLE I--ESTABLISHMENT

SEC. 101. STATEMENT OF POLICY.

It is the policy of the United States to facilitate market-
based private sector development and economic growth in less
developed countries through the provision of credit, capital,
and other financial support--
(1) to mobilize private capital in support of sustainable,
broad-based economic growth, poverty reduction, and
development through demand-driven partnerships with the
private sector that further the foreign policy interests of
the United States;
(2) to finance development that builds and strengthens
civic institutions, promotes competition, and provides for
public accountability and transparency;
(3) to help private sector actors overcome identifiable
market gaps and inefficiencies without distorting markets;
(4) to achieve clearly defined economic and social
development outcomes;
(5) to coordinate with institutions with purposes similar
to the purposes of the Corporation to leverage resources of
those institutions to produce the greatest impact;
(6) to provide countries a robust alternative to state-
directed investments by authoritarian governments and United
States strategic competitors using high standards of
transparency and environmental and social safeguards, and
which take into account the debt sustainability of partner
countries;
(7) to leverage private sector capabilities and innovative
development tools to help countries transition from
recipients of bilateral development assistance toward
increased self-reliance; and
(8) to complement and be guided by overall United States
foreign policy, development, and national security
objectives, taking into account the priorities and needs of
countries receiving support.

SEC. 102. UNITED STATES INTERNATIONAL DEVELOPMENT FINANCE
CORPORATION.

(a) Establishment.--There is established in the Executive
branch the United States International Development Finance
Corporation (in this Act referred to as the ``Corporation''),
which shall be a wholly owned Government corporation for
purposes of chapter 91 of title 31, United States Code, under
the foreign policy guidance of the Secretary of State.
(b) Purpose.--The purpose of the Corporation shall be to
mobilize and facilitate the participation of private sector
capital and skills in the economic development of less
developed countries, as described in subsection (c), and
countries in transition from nonmarket to market economies,
in order to complement the development assistance objectives,
and advance the foreign policy interests, of the United
States. In carrying out its purpose, the Corporation,
utilizing broad criteria, shall take into account in its
financing operations the economic and financial soundness and
development objectives of projects for which it provides
support under title II.
(c) Less Developed Country Focus.--
(1) In general.--The Corporation shall prioritize the
provision of support under title II in less developed
countries with a low-income economy or a lower-middle-income
economy.
(2) Support in upper-middle-income countries.--The
Corporation shall restrict the provision of support under
title II in a less developed country with an upper-middle-
income economy unless--
(A) the President certifies to the appropriate
congressional committees that such support furthers the
national economic or foreign policy interests of the United
States; and
(B) such support is likely to be highly developmental or
provide developmental benefits to the poorest population of
that country.

SEC. 103. MANAGEMENT OF CORPORATION.

(a) Structure of Corporation.--There shall be in the
Corporation a Board of Directors (in this Act referred to as
the ``Board''), a Chief Executive Officer, a Deputy Chief
Executive Officer, a Chief Risk Officer, a Chief Development
Officer, and such other officers as the Board may determine.
(b) Board of Directors.--
(1) Duties.--All powers of the Corporation shall vest in
and be exercised by or under the authority of the Board. The
Board--
(A) shall perform the functions specified to be carried out
by the Board in this Act;
(B) may prescribe, amend, and repeal bylaws, rules,
regulations, policies, and procedures governing the manner in
which the business of the Corporation may be conducted and in
which the powers granted to the Corporation by law may be
exercised; and
(C) shall develop, in consultation with stakeholders and
other interested parties, a publicly-available policy with
respect to consultations, hearings, and other forms of
engagement in order to provide for meaningful public
participation in the Board's activities.
(2) Membership of board.--
(A) In general.--The Board shall consist of--
(i) the Chief Executive Officer of the Corporation;
(ii) the officers specified in subparagraph (B); and
(iii) four other individuals who shall be appointed by the
President, by and with the advice and consent of the Senate,
of which--

(I) one individual should be appointed from among a list of
at least five individuals submitted by the majority leader of
the Senate after consultation with the chairman of the
Committee on Foreign Relations of the Senate;
(II) one individual should be appointed from among a list
of at least five individuals submitted by the minority leader
of the Senate after consultation with the ranking member of
the Committee on Foreign Relations of the Senate;
(III) one individual should be appointed from among a list
of at least five individuals submitted by the Speaker of the
House of Representatives after consultation with the chairman
of the Committee on Foreign Affairs of the House of
Representatives; and
(IV) one individual should be appointed from among a list
of at least five individuals submitted by the minority leader
of the House of Representatives after consultation with the
ranking member of the Committee on Foreign Affairs of the
House of Representatives.

(B) Officers specified.--
(i) In general.--The officers specified in this
subparagraph are the following:

(I) The Secretary of State or a designee of the Secretary.
(II) The Administrator of the United States Agency for
International Development or a designee of the Administrator.
(III) The Secretary of the Treasury or a designee of the
Secretary.
(IV) The Secretary of Commerce or a designee of the
Secretary.

(ii) Requirements for designees.--A designee under clause
(i) shall be selected from among officers--

(I) appointed by the President, by and with the advice and
consent of the Senate;
(II) whose duties relate to the programs of the
Corporation; and
(III) who is designated by and serving at the pleasure of
the President.

[[Page H6322]]

(i) may not be an officer or employee of the United States
Government;
(ii) shall have relevant experience, which may include
experience relating to the private sector, the environment,
labor organizations, or international development, to carry
out the purpose of the Corporation;
(iii) shall be appointed for a term of 3 years and may be
reappointed for one additional term;
(iv) shall serve until the member's successor is appointed
and confirmed;
(v) shall be compensated at a rate equivalent to that of
level IV of the Executive Schedule under section 5315 of
title 5, United States Code, when engaged in the business of
the Corporation; and
(vi) may be paid per diem in lieu of subsistence at the
applicable rate under the Federal Travel Regulation under
subtitle F of title 41, Code of Federal Regulations, from
time to time, while away from the home or usual place of
business of the member.
(3) Chairperson.--There shall be a Chairperson of the Board
designated by the President from among the individuals
described in paragraph (2)(A).
(4) Vice chairperson.--The Administrator of the United
States Agency for International Development, or the designee
of the Administrator under paragraph (2)(B)(i)(II), shall
serve as the Vice Chairperson of the Board.
(5) Quorum.--Five members of the Board shall constitute a
quorum for the transaction of business by the Board.
(c) Public Hearings.--
(1) Public hearings by the board.--The Board shall hold at
least one public hearing each year in order to afford an
opportunity for any person to present views with respect to
whether--
(A) the Corporation is carrying out its activities in
accordance with this Act; and
(B) any support provided by the Corporation under title II
in any country should be suspended, expanded, or extended.
(2) Additional public hearings.--In conjunction with each
meeting of the Board, the Corporation shall hold a public
hearing in order to afford an opportunity for any person to
present views regarding the activities of the Corporation.
Such views shall be made part of the record.
(d) Chief Executive Officer.--
(1) Appointment.--There shall be in the Corporation a Chief
Executive Officer, who shall be appointed by the President,
by and with the advice and consent of the Senate, and who
shall serve at the pleasure of the President.
(2) Authorities and duties.--The Chief Executive Officer
shall be responsible for the management of the Corporation
and shall exercise the powers and discharge the duties of the
Corporation subject to the bylaws, rules, regulations, and
procedures established by the Board.
(3) Relationship to board.--The Chief Executive Officer
shall report to and be under the direct authority of the
Board.
(4) Compensation.--Section 5313 of title 5, United States
Code, is amended by adding at the end the following:
``Chief Executive Officer, United States International
Development Finance Corporation.''.
(e) Deputy Chief Executive Officer.--There shall be in the
Corporation a Deputy Chief Executive Officer, who shall be
appointed by the President, by and with the advice and
consent of the Senate, and who shall serve at the pleasure of
the President.
(f) Chief Risk Officer.--
(1) Appointment.--Subject to the approval of the Board, the
Chief Executive Officer of the Corporation shall appoint a
Chief Risk Officer, from among individuals with experience at
a senior level in financial risk management, who--
(A) shall report directly to the Board; and
(B) shall be removable only by a majority vote of the
Board.
(2) Duties.--The Chief Risk Officer shall, in coordination
with the audit committee of the Board established under
section 401, develop, implement, and manage a comprehensive
process for identifying, assessing, monitoring, and limiting
risks to the Corporation, including the overall portfolio
diversification of the Corporation.
(g) Chief Development Officer.--
(1) Appointment.--Subject to the approval of the Board, the
Chief Executive Officer, in conjunction with the
Administrator of the United States Agency for International
Development, shall appoint a Chief Development Officer, from
among individuals with experience in development, who--
(A) shall report directly to the Board; and
(B) shall be removable only by a majority vote of the
Board.
(2) Duties.--The Chief Development Officer shall--
(A) coordinate the Corporation's development policies and
implementation efforts with the United States Agency for
International Development, the Millennium Challenge
Corporation, and other relevant United States Government
departments and agencies, including directly liaising with
missions of the United States Agency for International
Development, to ensure that departments, agencies, and
missions have training, awareness, and access to the
Corporation's tools in relation to development policy and
projects in countries;
(B) under the guidance of the Chief Executive Officer,
manage employees of the Corporation that are dedicated to
structuring, monitoring and evaluating transactions and
projects co-designed with the United States Agency for
International Development and other relevant United States
Government departments and agencies;
(C) authorize and coordinate transfers of funds or other
resources to and from such agencies, departments, or missions
upon the concurrence of those institutions in support of the
Corporation's projects or activities; and
(D) coordinate and implement the activities of the
Corporation under section 405.
(h) Officers and Employees.--
(1) In general.--Except as otherwise provided in this
section, officers, employees, and agents shall be selected
and appointed by the Corporation, and shall be vested with
such powers and duties as the Corporation may determine.
(2) Administratively determined employees.--
(A) Appointment; compensation; removal.--Of officers and
employees employed by the Corporation under paragraph (1),
not more than 50 may be appointed, compensated, or removed
without regard to title 5, United States Code.
(B) Reinstatement.--Under such regulations as the President
may prescribe, officers and employees appointed to a position
under subparagraph (A) may be entitled, upon removal from
such position (unless the removal was for cause), to
reinstatement to the position occupied at the time of
appointment or to a position of comparable grade and salary.
(C) Additional positions.--Positions authorized by
subparagraph (A) shall be in addition to those otherwise
authorized by law, including positions authorized under
section 5108 of title 5, United States Code.
(D) Rates of pay for officers and employees.--The
Corporation may set and adjust rates of basic pay for
officers and employees appointed under subparagraph (A)
without regard to the provisions of chapter 51 or subchapter
III of chapter 53 of title 5, United States Code, relating to
classification of positions and General Schedule pay rates,
respectively.
(3) Liability of employees.--
(A) In general.--An individual who is a member of the Board
or an officer or employee of the Corporation has no liability
under this Act with respect to any claim arising out of or
resulting from any act or omission by the individual within
the scope of the employment of the individual in connection
with any transaction by the Corporation.
(B) Rule of construction.--Subparagraph (A) shall not be
construed to limit personal liability of an individual for
criminal acts or omissions, willful or malicious misconduct,
acts or omissions for private gain, or any other acts or
omissions outside the scope of the individual's employment.
(C) Savings provision.--This paragraph shall not be
construed--
(i) to affect--

(I) any other immunities and protections that may be
available to an individual described in subparagraph (A)
under applicable law with respect to a transaction described
in that subparagraph; or
(II) any other right or remedy against the Corporation,
against the United States under applicable law, or against
any person other than an individual described in subparagraph
(A) participating in such a transaction; or

(ii) to limit or alter in any way the immunities that are
available under applicable law for Federal officers and
employees not described in this paragraph.

SEC. 104. INSPECTOR GENERAL OF THE CORPORATION.

The President shall appoint and maintain an Inspector
General in the Corporation, in accordance with the Inspector
General Act of 1978 (5 U.S.C. App.).

SEC. 105. INDEPENDENT ACCOUNTABILITY MECHANISM.

(a) In General.--The Board shall establish a transparent
and independent accountability mechanism.
(b) Functions.--The independent accountability mechanism
established pursuant to subsection (a) shall--
(1) annually evaluate and report to the Board and Congress
regarding compliance with environmental, social, labor, human
rights, and transparency standards, consistent with
Corporation statutory mandates;
(2) provide a forum for resolving concerns regarding the
impacts of specific Corporation-supported projects with
respect to such standards; and
(3) provide advice regarding Corporation projects,
policies, and practices.

TITLE II--AUTHORITIES

SEC. 201. AUTHORITIES RELATING TO PROVISION OF SUPPORT.

(a) In General.--The authorities in this title should only
be exercised to--
(1) carry out of the policy of the United States in section
101 and the purpose of the Corporation in section 102;
(2) mitigate risks to United States taxpayers by sharing
risks with the private sector and qualifying sovereign
entities through co-financing and structuring of tools; and
(3) ensure that support provided under this title is
additional to private sector resources by mobilizing private
capital that would otherwise not be deployed without such
support.
(b) Lending and Guaranties.--
(1) In general.--The Corporation may make loans or
guaranties upon such terms and conditions as the Corporation
may determine.

[[Page H6323]]

(2) Denomination.--Loans and guaranties issued under
paragraph (1) may be denominated and repayable in United
States dollars or foreign currencies. Foreign currency
denominated loans and guaranties should only be provided if
the Board determines there is a substantive policy rationale
for such loans and guaranties.
(3) Applicability of federal credit reform act of 1990.--
Loans and guaranties issued under paragraph (1) shall be
subject to the requirements of the Federal Credit Reform Act
of 1990 (2 U.S.C. 661 et seq.).
(c) Equity Investments.--
(1) In general.--The Corporation may, as a minority
investor, support projects with funds or use other mechanisms
for the purpose of purchasing, and may make and fund
commitments to purchase, invest in, make pledges in respect
of, or otherwise acquire, equity or quasi-equity securities
or shares or financial interests of any entity, including as
a limited partner or other investor in investment funds, upon
such terms and conditions as the Corporation may determine.
(2) Denomination.--Support provided under paragraph (1) may
be denominated and repayable in United States dollars or
foreign currency. Foreign currency denominated support
provided by paragraph (1) should only be provided if the
Board determines there is a substantive policy rationale for
such support.
(3) Guidelines and criteria.--The Corporation shall develop
guidelines and criteria to require that the use of the
authority provided by paragraph (1) with respect to a project
has a clearly defined development and foreign policy purpose,
taking into account the following objectives:
(A) The support for the project would be more likely than
not to substantially reduce or overcome the effect of an
identified market failure in the country in which the project
is carried out.
(B) The project would not have proceeded or would have been
substantially delayed without the support.
(C) The support would meaningfully contribute to
transforming local conditions to promote the development of
markets.
(D) The support can be shown to be aligned with commercial
partner incentives.
(E) The support can be shown to have significant
developmental impact and will contribute to long-term
commercial sustainability.
(F) The support furthers the policy of the United States
described in section 101.
(4) Limitations on equity investments.--
(A) Per project limit.--The aggregate amount of support
provided under this subsection with respect to any project
shall not exceed 30 percent of the aggregate amount of all
equity investment made from any source to the project at the
time that the Corporation approves support of the project.
(B) Total limit.--Support provided pursuant to this
subsection shall be limited to not more than 35 percent of
the Corporation's aggregate exposure on the date that such
support is provided.
(5) Sales and liquidation of position.--The Corporation
shall seek to sell and liquidate any support for a project
provided under this subsection as soon as commercially
feasible, commensurate with other similar investors in the
project and taking into consideration the national security
interests of the United States.
(6) Timetable.--The Corporation shall create a project-
specific timetable for support provided under paragraph (1).
(d) Insurance and Reinsurance.--The Corporation may issue
insurance or reinsurance, upon such terms and conditions as
the Corporation may determine, to private sector entities and
qualifying sovereign entities assuring protection of their
investments in whole or in part against any or all political
risks such as currency inconvertibility and transfer
restrictions, expropriation, war, terrorism, civil
disturbance, breach of contract, or nonhonoring of financial
obligations.
(e) Promotion of and Support for Private Investment
Opportunities.--
(1) In general.--In order to carry out the purpose of the
Corporation described in section 102(b), the Corporation may
initiate and support, through financial participation,
incentive grant, or otherwise, and on such terms and
conditions as the Corporation may determine, feasibility
studies for the planning, development, and management of, and
procurement for, potential bilateral and multilateral
development projects eligible for support under this title,
including training activities undertaken in connection with
such projects, for the purpose of promoting investment in
such projects and the identification, assessment, surveying,
and promotion of private investment opportunities, utilizing
wherever feasible and effective, the facilities of private
investors.
(2) Contributions to costs.--The Corporation shall, to the
maximum extent practicable, require any person receiving
funds under the authorities of this subsection to--
(A) share the costs of feasibility studies and other
project planning services funded under this subsection; and
(B) reimburse the Corporation those funds provided under
this section, if the person succeeds in project
implementation.
(f) Special Projects and Programs.--The Corporation may
administer and manage special projects and programs in
support of specific transactions undertaken by the
Corporation, including programs of financial and advisory
support that provide private technical, professional, or
managerial assistance in the development of human resources,
skills, technology, capital savings, or intermediate
financial and investment institutions or cooperatives and
including the initiation of incentives, grants, and studies
for renewable energy, women's economic empowerment,
microenterprise households, or other small business
activities.
(g) Enterprise Funds.--
(1) In general.--The Corporation may, following
consultation with the Secretary of State, the Administrator
of the United States Agency for International Development,
and the heads of other relevant departments or agencies,
establish and operate enterprise funds in accordance with
this subsection.
(2) Procedures and requirements.--The provisions of section
201 of the Support for East European Democracy (SEED) Act of
1989 (22 U.S.C. 5421) (other than the provisions of
subsections (a), (b), (c), (d)(1), (d)(3), (e), (f), and (j)
of that section), shall be deemed to apply with respect to
any enterprise fund established by the Corporation under this
subsection and to funds made available to any such enterprise
fund in the same manner and to the same extent as such
provisions apply with respect to enterprise funds established
pursuant to such section 201 or to funds made available to
enterprise funds established under that section.
(3) Purposes for which support may be provided.--The
Corporation, subject to the approval of the Board, may
designate private, nonprofit organizations as eligible to
receive support under this title for the following purposes:
(A) To promote development of economic freedom and private
sectors, including small- and medium-sized enterprises and
joint ventures with the United States and host country
participants.
(B) To facilitate access to credit to small- and medium-
sized enterprises with sound business plans in countries
where there is limited means of accessing credit on market
terms.
(C) To promote policies and practices conducive to economic
freedom and private sector development.
(D) To attract foreign direct investment capital to further
promote private sector development and economic freedom.
(E) To complement the work of the United States Agency for
International Development and other donors to improve the
overall business-enabling environment, financing the creation
and expansion of the private business sector.
(F) To make financially sustainable investments designed to
generate measurable social benefits and build technical
capacity in addition to financial returns.
(4) Operation of funds.--
(A) Expenditures.--Funds made available to an enterprise
fund shall be expended at the minimum rate necessary to make
timely payments for projects and activities carried out under
this subsection.
(B) Administrative expenses.--Not more than 3 percent per
annum of the funds made available to an enterprise fund may
be obligated or expended for the administrative expenses of
the enterprise fund.
(5) Board of directors.--Each enterprise fund established
under this subsection should be governed by a Board of
Directors comprised of private citizens of the United States
or the host country, who--
(A) shall be appointed by the President after consultation
with the chairmen and ranking members of the appropriate
congressional committees; and
(B) have pursued careers in international business and have
demonstrated expertise in international and emerging market
investment activities.
(6) Majority member requirement.--The majority of the
members of the Board of Directors shall be United States
citizens who shall have relevant experience relating to the
purposes described in paragraph (3).
(7) Reports.--Not later than one year after the date of the
establishment of an enterprise fund under this subsection,
and annually thereafter until the enterprise fund terminates
in accordance with paragraph (10), the Board of Directors of
the enterprise fund shall--
(A) submit to the appropriate congressional committees a
report--
(i) detailing the administrative expenses of the enterprise
fund during the year preceding the submission of the report;
(ii) describing the operations, activities, engagement with
civil society and relevant local private sector entities,
development objectives and outcomes, financial condition, and
accomplishments of the enterprise fund during that year;
(iii) describing the results of any audit conducted under
paragraph (8); and
(iv) describing how audits conducted under paragraph (8)
are informing the operations and activities of the enterprise
fund; and
(B) publish, on a publicly available internet website of
the enterprise fund, each report required by subparagraph
(A).
(8) Oversight.--
(A) Inspector general performance audits.--
(i) In general.--The Inspector General of the Corporation
shall conduct periodic audits of the activities of each
enterprise fund established under this subsection.
(ii) Consideration.--In conducting an audit under clause
(i), the Inspector General shall assess whether the
activities of the enterprise fund--

(I) support the purposes described in paragraph (3);

[[Page H6324]]

(II) result in profitable private sector investing; and
(III) generate measurable social benefits.

(B) Recordkeeping requirements.--The Corporation shall
ensure that each enterprise fund receiving support under this
subsection--
(i) keeps separate accounts with respect to such support;
and
(ii) maintains such records as may be reasonably necessary
to facilitate effective audits under this paragraph.
(9) Return of funds to treasury.--Any funds resulting from
any liquidation, dissolution, or winding up of an enterprise
fund, in whole or in part, shall be returned to the Treasury
of the United States.
(10) Termination.--The authority of an enterprise fund to
provide support under this subsection shall terminate on the
earlier of--
(A) the date that is 7 years after the date of the first
expenditure of amounts from the enterprise fund; or
(B) the date on which the enterprise fund is liquidated.
(h) Supervision of Support.--Support provided under this
title shall be subject to section 622(c) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2382(c)).

SEC. 202. TERMS AND CONDITIONS.

(a) In General.--Except as provided in subsection (b),
support provided by the Corporation under this title shall be
on such terms and conditions as the Corporation may
prescribe.
(b) Requirements.--The following requirements apply to
support provided by the Corporation under this title:
(1) The Corporation shall provide support using authorities
under this title only if it is necessary--
(A) to alleviate a credit market imperfection; or
(B) to achieve specified development or foreign policy
objectives of the United States Government by providing
support in the most efficient way to meet those objectives on
a case-by-case basis.
(2) The final maturity of a loan made or guaranteed by the
Corporation shall not exceed the lesser of--
(A) 25 years; or
(B) debt servicing capabilities of the project to be
financed by the loan (as determined by the Corporation).
(3) The Corporation shall, with respect to providing any
loan guaranty to a project, require the parties to the
project to bear the risk of loss in an amount equal to at
least 20 percent of the guaranteed support by the Corporation
in the project.
(4) The Corporation may not make or guarantee a loan unless
the Corporation determines that the borrower or lender is
responsible and that adequate provision is made for servicing
the loan on reasonable terms and protecting the financial
interest of the United States.
(5) The interest rate for direct loans and interest
supplements on guaranteed loans shall be set by reference to
a benchmark interest rate (yield) on marketable Treasury
securities or other widely recognized or appropriate
benchmarks with a similar maturity to the loans being made or
guaranteed, as determined in consultation with the Director
of the Office of Management and Budget and the Secretary of
the Treasury. The Corporation shall establish appropriate
minimum interest rates for loans, guaranties, and other
instruments as necessary.
(6) The minimum interest rate for new loans as established
by the Corporation shall be adjusted periodically to take
account of changes in the interest rate of the benchmark
financial instrument.
(7)(A) The Corporation shall set fees or premiums for
support provided under this title at levels that minimize the
cost to the Government while supporting achievement of the
objectives of support.
(B) The Corporation shall review fees for loan guaranties
periodically to ensure that the fees assessed on new loan
guaranties are at a level sufficient to cover the
Corporation's most recent estimates of its costs.
(8) Any loan guaranty provided by the Corporation shall be
conclusive evidence that--
(A) the guaranty has been properly obtained;
(B) the loan qualified for the guaranty; and
(C) but for fraud or material misrepresentation by the
holder of the guaranty, the guaranty is presumed to be valid,
legal, and enforceable.
(9) The Corporation shall prescribe explicit standards for
use in periodically assessing the credit risk of new and
existing direct loans or guaranteed loans.
(10) The Corporation may not make loans or loan guaranties
except to the extent that budget authority to cover the costs
of the loans or guaranties is provided in advance in an
appropriations Act, as required by section 504 of the Federal
Credit Reform Act of 1990 (2 U.S.C. 661c).
(11) The Corporation shall rely upon specific standards to
assess the developmental and strategic value of projects for
which it provides support and should only provide the minimum
level of support necessary in order to support such projects.
(12) Any loan or loan guaranty made by the Corporation
should be provided on a senior basis or pari passu with other
senior debt unless there is a substantive policy rationale to
provide such support otherwise.

SEC. 203. PAYMENT OF LOSSES.

(a) Payments for Defaults on Guaranteed Loans.--
(1) In general.--If the Corporation determines that the
holder of a loan guaranteed by the Corporation suffers a loss
as a result of a default by a borrower on the loan, the
Corporation shall pay to the holder the percent of the loss,
as specified in the guaranty contract after the holder of the
loan has made such further collection efforts and instituted
such enforcement proceedings as the Corporation may require.
(2) Subrogation.--Upon making a payment described in
paragraph (1), the Corporation shall ensure the Corporation
will be subrogated to all the rights of the recipient of the
payment.
(3) Recovery efforts.--The Corporation shall pursue
recovery from the borrower of the amount of any payment made
under paragraph (1) with respect to the loan.
(b) Limitation on Payments.--
(1) In general.--Except as provided by paragraph (2),
compensation for insurance, reinsurance, or a guaranty issued
under this title shall not exceed the dollar value of the
tangible or intangible contributions or commitments made in
the project, plus interest, earnings, or profits actually
accrued on such contributions or commitments, to the extent
provided by such insurance, reinsurance, or guaranty.
(2) Exception.--
(A) In general.--The Corporation may provide that--
(i) appropriate adjustments in the insured dollar value be
made to reflect the replacement cost of project assets; and
(ii) compensation for a claim of loss under insurance of an
equity investment under section 201(d) may be computed on the
basis of the net book value attributable to the equity
investment on the date of loss.
(3) Additional limitation.--
(A) In general.--Notwithstanding paragraph (2)(A)(ii) and
except as provided in subparagraph (B), the Corporation shall
limit the amount of direct insurance and reinsurance issued
under section 201 with respect to a project so as to require
that the insured and its affiliates bear the risk of loss for
at least 10 percent of the amount of the Corporation's
exposure to that insured and its affiliates in the project.
(B) Exception.--The limitation under subparagraph (A) shall
not apply to direct insurance or reinsurance of loans
provided by banks or other financial institutions to
unrelated parties.
(c) Actions by Attorney General.--The Attorney General
shall take such action as may be appropriate to enforce any
right accruing to the United States as a result of the
issuance of any loan or guaranty under this title.
(d) Rule of Construction.--Nothing in this section shall be
construed to preclude any forbearance for the benefit of a
borrower that may be agreed upon by the parties to a loan
guaranteed by the Corporation if budget authority for any
resulting costs to the United States Government (as defined
in section 502 of the Federal Credit Reform Act of 1990 (2
U.S.C. 661a)) is available.

SEC. 204. TERMINATION.

(a) In General.--The authorities provided under this title
terminate on the date that is 7 years after the date of the
enactment of this Act.
(b) Termination of Corporation.--The Corporation shall
terminate on the date on which the portfolio of the
Corporation is liquidated.

TITLE III--ADMINISTRATIVE AND GENERAL PROVISIONS

SEC. 301. OPERATIONS.

(a) Bilateral Agreements.--The Corporation may provide
support under title II in connection with projects in any
country the government of which has entered into an agreement
with the United States authorizing the Corporation to provide
such support in that country.
(b) Claims Settlement.--
(1) In general.--Claims arising as a result of support
provided under title II or under predecessor authority may be
settled, and disputes arising as a result thereof may be
arbitrated with the consent of the parties, on such terms and
conditions as the Corporation may determine.
(2) Settlements conclusive.--Payment made pursuant to any
settlement pursuant to paragraph (1), or as a result of an
arbitration award, shall be final and conclusive
notwithstanding any other provision of law.
(c) Presumption of Compliance.--Each contract executed by
such officer or officers as may be designated by the Board
shall be conclusively presumed to be issued in compliance
with the requirements of this Act.
(d) Electronic Payments and Documents.--The Corporation
shall implement policies to accept electronic documents and
electronic payments in all of its programs.

SEC. 302. CORPORATE POWERS.

(a) In General.--The Corporation--
(1) may adopt, alter, and use a seal, to include an
identifiable symbol of the United States;
(2) may make and perform such contracts, including no-cost
contracts (as defined by the Corporation), grants, and other
agreements notwithstanding division C of subtitle I of title
41, United States Code, with any person or government however
designated and wherever situated, as may be necessary for
carrying out the functions of the Corporation;
(3) may lease, purchase, or otherwise acquire, improve, and
use such real property wherever situated, as may be necessary
for carrying out the functions of the Corporation and which,
if done for the Corporation's

[[Page H6325]]

own occupancy, shall be made in consultation with the
Administrator of General Services;
(4) may accept cash gifts or donations of services or of
property (real, personal, or mixed), tangible or intangible,
for the purpose of carrying out the functions of the
Corporation;
(5) may use the United States mails in the same manner and
on the same conditions as the Executive departments (as
defined in section 101 of title 5, United States Code);
(6) may contract with individuals for personal services,
who shall not be considered Federal employees for any
provision of law administered by the Director of the Office
of Personnel Management;
(7) may hire or obtain passenger motor vehicles;
(8) may sue and be sued in its corporate name;
(9) may acquire, hold, or dispose of, upon such terms and
conditions as the Corporation may determine, any property,
real, personal, or mixed, tangible or intangible, or any
interest in such property and which, if done for the
Corporation's own occupancy, shall be made in consultation
with the Administrator of General Services;
(10) may lease office space for the Corporation's own use,
with the obligation of amounts for such lease limited to the
current fiscal year for which payments are due until the
expiration of the current lease under predecessor authority,
as of the day before the date of the enactment of this Act;
(11) may indemnify directors, officers, employees, and
agents of the Corporation for liabilities and expenses
incurred in connection with their activities on behalf of the
Corporation;
(12) notwithstanding any other provision of law, may
represent itself or contract for representation in any legal
or arbitral proceeding;
(13) may exercise any priority of the Government of the
United States in collecting debts from bankrupt, insolvent,
or decedents' estates;
(14) may collect, notwithstanding section 3711(g)(1) of
title 31, United States Code, or compromise any obligations
assigned to or held by the Corporation, including any legal
or equitable rights accruing to the Corporation;
(15) may make arrangements with foreign governments
(including agencies, instrumentalities, or political
subdivisions of such governments) or with multilateral
organizations or institutions for sharing liabilities;
(16) may sell direct investments of the Corporation to
private investors upon such terms and conditions as the
Corporation may determine; and
(17) shall have such other powers as may be necessary and
incident to carrying out the functions of the Corporation.
(b) Treatment of Property.--Notwithstanding any other
provision of law relating to the acquisition, handling, or
disposal of property by the United States, the Corporation
shall have the right in its discretion to complete,
recondition, reconstruct, renovate, repair, maintain,
operate, or sell any property acquired by the Corporation
pursuant to the provisions of this Act and which, if done for
the Corporation's own occupancy, shall be made in
consultation with the Administrator of General Services.

SEC. 303. MAXIMUM CONTINGENT LIABILITY.

(a) In General.--The maximum contingent liability of the
Corporation outstanding at any one time shall not exceed in
the aggregate the amount specified in subsection (b).
(b) Amount Specified.--
(1) Initial 5-year period.--The amount specified in this
subsection for the 5-year period beginning on the date of the
enactment of this Act, is $60,000,000,000.
(2) Subsequent 5-year periods.--Not later than 5 years
after the date of the enactment of this Act, and not less
frequently than every 5 years thereafter, the amount
specified in paragraph (1) shall be adjusted to reflect the
percentage of the increase (if any) in the average of the
Consumer Price Index during the preceding 5-year period.
(3) Consumer price index defined.--In this subsection, the
term ``Consumer Price Index'' means the most recent Consumer
Price Index for All Urban Consumers published by the Bureau
of Labor Statistics of the Department of Labor.

SEC. 304. CORPORATE FUNDS.

(a) Corporate Capital Account.--There is established in the
Treasury of the United States a fund to be known as the
``Corporate Capital Account'' to carry out the purposes of
the Corporation.
(b) Funding.--The Corporate Capital Account shall consist
of--
(1) fees charged and collected pursuant to subsection (c);
(2) any amounts received pursuant to subsection (e);
(3) investments and returns on such investments pursuant to
subsection (g);
(4) unexpended balances transferred to the Corporation
pursuant to subsection (i);
(5) payments received in connection with settlements of all
insurance and reinsurance claims of the Corporation; and
(6) all other collections transferred to or earned by the
Corporation, excluding the cost, as defined in section 502 of
the Federal Credit Reform Act of 1990 (2 U.S.C. 661a), of
loans and loan guaranties.
(c) Fee Authority.--Fees may be charged and collected for
providing services in amounts to be determined by the
Corporation.
(d) Uses.--
(1) In general.--Subject to Acts making appropriations, the
Corporation is authorized to pay--
(A) the cost, as defined in section 502 of the Federal
Credit Reform Act of 1990, of loans and loan guaranties;
(B) administrative expenses of the Corporation;
(C) for the cost of providing support authorized by
subsections (c), (e), (f), and (g) of section 201; and
(D) project-specific transaction costs.
(2) Income and revenue.--In order to carry out the purposes
of the Corporation, all collections transferred to or earned
by the Corporation, excluding the cost, as defined in section
502 of the Federal Credit Reform Act of 1990, of loans and
loan guaranties, shall be deposited into the Corporate
Capital Account and shall be available to carry out its
purpose, including without limitation--
(A) payment of all insurance and reinsurance claims of the
Corporation;
(B) repayments to the Treasury of amounts borrowed under
subsection (e); and
(C) dividend payments to the Treasury under subsection (f).
(e) Full Faith and Credit.--
(1) In general.--All support provided pursuant to
predecessor authorities or title II shall continue to
constitute obligations of the United States, and the full
faith and credit of the United States is hereby pledged for
the full payment and performance of such obligations.
(2) Authority to borrow.--The Corporation is authorized to
borrow from the Treasury such sums as may be necessary to
fulfill such obligations of the United States and any such
borrowing shall be at a rate determined by the Secretary of
the Treasury, taking into consideration the current average
market yields on outstanding marketable obligations of the
United States of comparable maturities, for a period jointly
determined by the Corporation and the Secretary, and subject
to such terms and conditions as the Secretary may require.
(f) Dividends.--The Board, in consultation with the
Director of the Office of Management and Budget, shall
annually assess a dividend payment to the Treasury if the
Corporation's insurance portfolio is more than 100 percent
reserved.
(g) Investment Authority.--
(1) In general.--The Corporation may request the Secretary
of the Treasury to invest such portion of the Corporate
Capital Account as is not, in the Corporation's judgement,
required to meet the current needs of the Corporate Capital
Account.
(2) Form of investments.--Such investments shall be made by
the Secretary of the Treasury in public debt obligations,
with maturities suitable to the needs of the Corporate
Capital Account, as determined by the Corporation, and
bearing interest at rates determined by the Secretary, taking
into consideration current market yields on outstanding
marketable obligations of the United States of comparable
maturities.
(h) Collections.--Interest earnings made pursuant to
subsection (g), earnings collected related to equity
investments, and amounts, excluding fees related to insurance
or reinsurance, collected pursuant to subsection (c), shall
not be collected for any fiscal year except to the extent
provided in advance in appropriations Acts.
(i) Transfer From Predecessor Agencies and Programs.--By
the date end of the transition period described in title VI,
the unexpended balances, assets, and responsibilities of any
agency specified in the plan required by section 602 shall be
transferred to the Corporation.
(j) Transfer of Funds.--In order to carry out this Act,
funds authorized to be appropriated to carry out the Foreign
Assistance Act of 1961 (22 U.S.C. 2151 et seq.) may be
transferred to the Corporation and funds authorized to be
appropriated to the Corporation may be transferred to the
Department of State and the United States Agency for
International Development.
(k) Definition.--In this section, the term ``project-
specific transaction costs''--
(1) means those costs incurred by the Corporation for
travel, legal expenses, and direct and indirect costs
incurred in claims settlements associated with the provision
of support under title II and shall not be considered
administrative expenses for the purposes of this section; and
(2) does not include information technology (as such term
is defined in section 11101 of title 40, United States Code).

SEC. 305. COORDINATION WITH OTHER DEVELOPMENT AGENCIES.

It is the sense of Congress that the Corporation should use
relevant data of the Department of State, the Millennium
Challenge Corporation, the United States Agency for
International Development, and other departments and agencies
that have development functions to better inform the
decisions of the Corporation with respect to providing
support under title II.

TITLE IV--MONITORING, EVALUATION, AND REPORTING

SEC. 401. ESTABLISHMENT OF RISK AND AUDIT COMMITTEES.

(a) In General.--To assist the Board to fulfill its duties
and responsibilities under section 201(a), the Corporation
shall establish a risk committee and an audit committee.
(b) Duties and Responsibilities of Risk Committee.--Subject
to the direction of the

[[Page H6326]]

Board, the risk committee established under subsection (a)
shall have oversight responsibility of--
(1) formulating risk management policies of the operations
of the Corporation;
(2) reviewing and providing guidance on operation of the
Corporation's global risk management framework;
(3) developing policies for enterprise risk management,
monitoring, and management of strategic, reputational,
regulatory, operational, developmental, environmental,
social, and financial risks;
(4) developing the risk profile of the Corporation,
including a risk management and compliance framework and
governance structure to support such framework; and
(5) developing policies and procedures for assessing, prior
to providing, and for any period during which the Corporation
provides, support to any foreign entities, whether such
entities have in place sufficient enhanced due diligence
policies and practices to prevent money laundering and
corruption to ensure the Corporation does not provide support
to persons that are--
(A) knowingly engaging in acts of corruption;
(B) knowingly providing material or financial support for
terrorism, drug trafficking, or human trafficking; or
(C) responsible for ordering or otherwise directing serious
or gross violations of human rights.
(c) Duties and Responsibilities of Audit Committee.--
Subject to the direction of the Board, the audit committee
established under subsection (a) shall have the oversight
responsibility of--
(1) the integrity of the Corporation's financial reporting
and systems of internal controls regarding finance and
accounting;
(2) the integrity of the Corporation's financial
statements;
(3) the performance of the Corporation's internal audit
function; and
(4) compliance with legal and regulatory requirements
related to the finances of the Corporation.

SEC. 402. PERFORMANCE MEASURES, EVALUATION, AND LEARNING.

(a) In General.--The Corporation shall develop a
performance measurement system to evaluate and monitor
projects supported by the Corporation under title II and to
guide future projects of the Corporation.
(b) Considerations.--In developing the performance
measurement system required by subsection (a), the
Corporation shall--
(1) develop a successor for the development impact
measurement system of the Overseas Private Investment
Corporation (as such system was in effect on the day before
the date of enactment of this Act);
(2) develop a mechanism for ensuring that support provided
by the Corporation under title II is in addition to private
investment;
(3) develop standards for, and a method for ensuring,
appropriate financial performance of the Corporation's
portfolio; and
(4) develop standards for, and a method for ensuring,
appropriate development performance of the Corporation's
portfolio, including--
(A) measurement of the projected and ex post development
impact of a project; and
(B) the information necessary to comply with section 403.
(c) Public Availability of Certain Information.--The
Corporation shall make available to the public on a regular
basis information about support provided by the Corporation
under title II and performance metrics about such support on
a country-by-country basis.
(d) Collaboration.--In developing the performance
measurement system required by subsection (a), the
Corporation shall consult with stakeholders and other
interested parties engaged in sustainable economic growth and
development.

SEC. 403. ANNUAL REPORT.

(a) In General.--After the end of each fiscal year, the
Corporation shall submit to the appropriate congressional
committees a complete and detailed report of its operations
during that fiscal year, including an assessment of--
(1) the economic and social development impact, including
with respect to matters described in subsections (d) and (e)
of section 501, of projects supported by the Corporation
under title II;
(2) the extent to which the operations of the Corporation
complement or are compatible with the development assistance
programs of the United States and qualifying sovereign
entities;
(3) the Corporation's institutional linkages with other
relevant United States Government department and agencies,
including efforts to strengthen such linkages; and
(4) the compliance of projects supported by the Corporation
under title II with human rights, environmental, labor, and
social policies, or other such related policies that govern
the Corporation's support for projects, promulgated or
otherwise administered by the Corporation.
(b) Elements.--Each annual report required by subsection
(a) shall include analyses of the effects of projects
supported by the Corporation under title II, including--
(1) reviews and analyses of--
(A) the desired development outcomes for projects and
whether or not the Corporation is meeting the associated
metrics, goals, and development objectives, including, to the
extent practicable, in the years after conclusion of
projects; and
(B) the effect of the Corporation's support on access to
capital and ways in which the Corporation is addressing
identifiable market gaps or inefficiencies and what impact,
if any, such support has on access to credit for a specific
project, country, or sector;
(2) an explanation of any partnership arrangement or
cooperation with a qualifying sovereign entity in support of
each project;
(3) projections of--
(A) development outcomes, and whether or not support for
projects are meeting the associated performance measures,
both during the start-up phase and over the duration of the
support, and to the extent practicable, measures of such
development outcomes should be on a gender-disaggregated
basis, such as changes in employment, access to financial
services, enterprise development and growth, and composition
of executive boards and senior leadership of enterprises
receiving support under title II; and
(B) the value of private sector assets brought to bear
relative to the amount of support provided by the Corporation
and the value of any other public sector support; and
(4) an assessment of the extent to which lessons learned
from the monitoring and evaluation activities of the
Corporation, and from annual reports from previous years
compiled by the Corporation, have been applied to projects.

SEC. 404. PUBLICLY AVAILABLE PROJECT INFORMATION.

The Corporation shall--
(1) maintain a user-friendly, publicly available, machine-
readable database with detailed country-level information,
including a description of the support provided by the
Corporation under title II; and
(2) include a clear link to information about each project
supported by the Corporation under title II on the internet
website of the Department of State,
``ForeignAssistance.gov'', or a successor website or other
online publication.

SEC. 405. ENGAGEMENT WITH INVESTORS.

(a) In General.--The Corporation, acting through the Chief
Development Officer, shall, in cooperation with the
Administrator of the United States Agency for International
Development--
(1) develop a strategic relationship with private sector
entities focused at the nexus of business opportunities and
development priorities;
(2) engage such entities and reduce business risks
primarily through direct transaction support and facilitating
investment partnerships;
(3) develop and support tools, approaches, and
intermediaries that can mobilize private finance at scale in
the developing world;
(4) pursue projects of all sizes, especially those that are
small but designed for work in the most underdeveloped areas,
including countries with chronic suffering as a result of
extreme poverty, fragile institutions, or a history of
violence; and
(5) pursue projects consistent with the policy of the
United States described in section 101 and the Joint
Strategic Plan and the Mission Country Development
Cooperation Strategies of the United States Agency for
International Development.
(b) Assistance.--To achieve the goals described in
subsection (a), the Corporation shall--
(1) develop risk mitigation tools;
(2) provide transaction structuring support for blended
finance models;
(3) support intermediaries linking capital supply and
demand;
(4) coordinate with other Federal agencies to support or
accelerate transactions;
(5) convene financial, donor, civil society, and public
sector partners around opportunities for private finance
within development priorities;
(6) offer strategic planning and programming assistance to
catalyze investment into priority sectors;
(7) provide transaction structuring support;
(8) deliver training and knowledge management tools for
engaging private investors;
(9) partner with private sector entities that provide
access to capital and expertise; and
(10) identify and screen new investment partners.
(c) Technical Assistance.--The Corporation shall coordinate
with the United States Agency for International Development
and other agencies and departments, as necessary, on projects
and programs supported by the Corporation that include
technical assistance.

SEC. 406. NOTIFICATION OF SUPPORT TO BE PROVIDED BY THE
CORPORATION.

(a) In General.--Not later than 15 days prior to the
Corporation making a financial commitment associated with the
provision of support under title II in an amount in excess of
$10,000,000, the Chief Executive Officer of the Corporation
shall submit to the Committee on Foreign Affairs and the
Committee on Appropriations of the House of Representatives
and the Committee on Foreign Relations and the Committee on
Appropriations of the Senate a report in writing that
contains the information required by subsection (b).
(b) Information Required.--The information required by this
subsection includes--
(1) the amount of each such financial commitment;
(2) an identification of the recipient or beneficiary; and
(3) a description of the project, activity, or asset and
the development goal or purpose to be achieved by providing
support by the Corporation.

[[Page H6327]]

TITLE V--CONDITIONS, RESTRICTIONS, AND PROHIBITIONS

SEC. 501. LIMITATIONS AND PREFERENCES.

(a) Limitation on Support for Single Entity.--No entity
receiving support from the Corporation under title II may
receive more than an amount equal to 5 percent of the
Corporation's maximum contingent liability authorized under
section 303.
(b) Preference for Support for Projects Sponsored by United
States Persons.--
(1) In general.--The Corporation should give preferential
consideration to projects sponsored by or involving private
sector entities that are United States persons.
(2) United states person defined.--In this subsection, the
term ``United States person'' means--
(A) a United States citizen; or
(B) an entity significantly beneficially owned by
individuals described in subparagraph (A).
(c) Preference for Support in Countries in Compliance With
International Trade Obligations.--
(1) Consultations with united states trade
representative.--Not less frequently than annually, the
Corporation shall consult with the United States Trade
Representative with respect to the status of countries
eligible to receive support from the Corporation under title
II and the compliance of those countries with their
international trade obligations.
(2) Preferential consideration.--The Corporation shall give
preferential consideration to providing support under title
II for projects in countries in compliance with or making
substantial progress coming into compliance with their
international trade obligations.
(d) Worker Rights.--
(1) In general.--The Corporation should support projects
under title II in countries that are taking steps to adopt
and implement laws that extend internationally recognized
worker rights (as defined in section 507 of the Trade Act of
1974 (19 U.S.C. 2467)) to workers in that country, including
any designated zone in that country.
(2) Required contract language.--The Corporation shall also
include the following language, in substantially the
following form, in all contracts which the Corporation enters
into with eligible investors to provide support under title
II: ``The person receiving support agrees not to take actions
to prevent employees of the foreign enterprise from lawfully
exercising their right of association and their right to
organize and bargain collectively. The person further agrees
to observe applicable laws relating to a minimum age for
employment of children, acceptable conditions of work with
respect to minimum wages, hours of work, and occupational
health and safety, and not to use forced labor or the worst
forms of child labor (as defined in section 507 of the Trade
Act of 1974 (19 U.S.C. 2467(6))). The person is not
responsible under this paragraph for the actions of a foreign
government.''.
(e) Environmental and Social Impact.--The Board shall not
vote in favor of any project proposed to be supported by the
Corporation under title II that is likely to have significant
adverse environmental or social impacts that are sensitive,
diverse, or unprecedented, unless--
(1) at least 60 days before the date of the vote, an
environmental and social impact assessment or initial
environmental and social audit, analyzing the environmental
and social impacts of the proposed project and of
alternatives to the proposed project, is completed; and
(2) such assessment or audit has been made available to the
public of the United States, locally affected groups in the
country in which the project will be carried out, and
nongovernmental organizations in that country.
(f) Women's Economic Empowerment.--In utilizing its
authorities under title II, the Corporation should consider
the impacts of its support on women's economic opportunities
and outcomes and make efforts to mitigate gender gaps and
maximize development impact by working to improve women's
economic opportunities.
(g) Preference for Provision of Support in Countries
Embracing Private Enterprise.--
(1) In general.--The Corporation should give preferential
consideration to projects for which support under title II
may potentially be provided in countries the governments of
which have demonstrated consistent support for economic
policies that promote the development of private enterprise,
both domestic and foreign, and maintaining the conditions
that enable private enterprise to make its full contribution
to the development of such countries, including--
(A) market-based economic policies;
(B) protecting private property rights;
(C) respect for the rule of law; and
(D) systems to combat corruption and bribery.
(2) Sources of information.--The Corporation should rely on
both third-party indicators and United States Government
information, such as the Department of State's Investment
Climate Statements, the Department of Commerce's Country
Commercial Guides, or the Millennium Challenge Corporation's
Constraints Analysis, to assess whether countries meet the
conditions described in paragraph (1).
(h) Consideration of Foreign Boycott Participation.--In
providing support for projects under title II, the
Corporation shall consider, using information readily
available, whether the project is sponsored by or
substantially affiliated with any person taking or knowingly
agreeing to take actions, or having taken or knowingly agreed
to take actions within the past three years, which
demonstrate or otherwise evidence intent to comply with,
further, or support any boycott fostered or imposed by any
foreign country, or request to impose any boycott by any
foreign country, against a country which is friendly to the
United States and which is not itself the object of any form
of boycott pursuant to United States law or regulation.

SEC. 502. ADDITIONALITY AND AVOIDANCE OF MARKET DISTORTION.

(a) In General.--Before the Corporation provides support
for a project under title II, the Corporation shall ensure
that private sector entities are afforded an opportunity to
support the project.
(b) Safeguards, Policies, and Guidelines.--The Corporation
shall develop appropriate safeguards, policies, and
guidelines to ensure that support provided by the Corporation
under title II--
(1) supplements and encourages, but does not compete with,
private sector support;
(2) operates according to internationally recognized best
practices and standards with respect to ensuring the
avoidance of market distorting government subsidies and the
crowding out of private sector lending; and
(3) does not have a significant adverse impact on United
States employment.

SEC. 503. PROHIBITION ON SUPPORT IN SANCTIONED COUNTRIES AND
WITH SANCTIONED PERSONS.

(a) In General.--The Corporation is prohibited from
providing support under title II in a country the government
of which the Secretary of State has determined has repeatedly
provided support for acts of international terrorism for
purposes of--
(1) section 6(j)(1)(A) of the Export Administration Act of
1979 (50 U.S.C. 4605(j)(1)(A)) (as continued in effect
pursuant to the International Emergency Economic Powers Act
(50 U.S.C. 1701 et seq.));
(2) section 620A(a) of the Foreign Assistance Act of 1961
(22 U.S.C. 2371(a));
(3) section 40(d) of the Arms Export Control Act (22 U.S.C.
2780(d)); or
(4) any other provision of law.
(b) Prohibition on Support of Sanctioned Persons.--The
Corporation is prohibited from supporting a project under
title II that directly benefits any entity subject to
sanctions imposed by the United States.
(c) Prohibition on Support of Activities Subject to
Sanctions.--The Corporation shall require any entity or party
receiving support under title II to certify it, any entity
owned or controlled by the entity or party, or any entity or
party which owns or otherwise manages the entity or party
receiving support, does not conduct any activities subject to
sanctions imposed by the United States.

SEC. 504. PENALTIES FOR MISREPRESENTATION, FRAUD, AND
BRIBERY.

Subsections (g), (l), and (n) of section 237 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2197) shall apply with
respect to the Corporation to the same extent and in the same
manner as such subsections applied with respect to the
Overseas Private Investment Corporation on the day before the
date of the enactment of this Act.

TITLE VI--TRANSITIONAL PROVISIONS

SEC. 601. DEFINITIONS.

In this title:
(1) Agency.--The term ``agency'' includes any entity,
organizational unit, program, or function.
(2) Transition period.--The term ``transition period''
means the period--
(A) beginning on the date of the enactment of this Act; and
(B) ending on the effective date of the reorganization plan
required by section 602(e).

SEC. 602. REORGANIZATION PLAN.

(a) Submission of Plan.--
(1) In general.--Not later than 120 days after the date of
the enactment of this Act, the President shall transmit to
the appropriate congressional committees a reorganization
plan regarding the following:
(A) The transfer of agencies, personnel, assets, and
obligations to the Corporation pursuant to this title.
(B) Any consolidation, reorganization, or streamlining of
agencies transferred to the Corporation pursuant to this
title.
(C) Any efficiencies or cost savings achieved as a result
of the transfer of agencies, personnel, assets, and
obligations to the Corporation pursuant to this title,
including reductions in unnecessary or duplicative
operations, assets, and personnel.
(2) Consultation.--Not later than 15 days before the date
on which the plan is transmitted pursuant to this subsection,
the President shall consult with the appropriate
congressional committees on such plan.
(b) Plan Elements.--The plan transmitted under subsection
(a) shall contain, consistent with this Act, such elements as
the President deems appropriate, including the following:
(1) Identification of any functions of agencies transferred
to the Corporation pursuant to this title that will not be
transferred to the Corporation under the plan.
(2) Specification of the steps to be taken to organize the
Corporation, including the delegation or assignment of
functions transferred to the Corporation.
(3) Specification of the funds available to each agency
that will be transferred to the Corporation as a result of
transfers under the plan.

[[Page H6328]]

(4) Specification of the proposed allocations within the
Corporation of unexpended funds transferred in connection
with transfers under the plan.
(5) Specification of any proposed disposition of property,
facilities, contracts, records, and other assets and
obligations of agencies transferred under the plan.
(c) Report on Coordination.--
(1) In general.--The transfer of functions authorized by
this section may occur only after the President and Chief
Executive Officer of the Overseas Private Investment
Corporation and the Administrator of the United States Agency
for International Development jointly submit to the Committee
on Foreign Affairs and Committee on Appropriations of the
House of Representatives and Committee on Foreign Relations
and Committee on Appropriations of the Senate a report in
writing that contains the information required by paragraph
(2).
(2) Information required.--The information required by this
paragraph includes a description in detail of the procedures
to be followed after the transfer of functions authorized by
this section have occurred to coordinate between the
Corporation and the United States Agency for International
Development in carrying out the functions so transferred.
(d) Modification of Plan.--The President shall consult with
the appropriate congressional committees before making any
material modification or revision to the plan before the plan
becomes effective in accordance with subsection (e).
(e) Effective Date.--
(1) In general.--The reorganization plan described in this
section, including any modifications or revisions of the plan
under subsection (c), shall become effective for an agency on
the date specified in the plan (or the plan as modified
pursuant to subsection (d)), except that such date may not be
earlier than 90 days after the date the President has
transmitted the reorganization plan to the appropriate
congressional committees pursuant to subsection (a).
(2) Statutory construction.--Nothing in this subsection may
be construed to require the transfer of functions, personnel,
records, balances of appropriations, or other assets of an
agency on a single date.

SEC. 603. TRANSFER OF FUNCTIONS.

(a) In General.--Effective at the end of the transition
period, there shall be transferred to the Corporation the
functions, personnel, assets, and liabilities of--
(1) the Overseas Private Investment Corporation, as in
existence on the day before the date of the enactment of this
Act; and
(2) the following elements of the United States Agency for
International Development:
(A) The Development Credit Authority.
(B) The existing Legacy Credit portfolio under the Urban
Environment Program and any other direct loan programs and
non-Development Credit Authority guaranty programs authorized
by the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et
seq.) or other predecessor Acts, as in existence on the date
of the enactment of this Act, other than any sovereign loan
guaranties.
(b) Additional Transfer Authority.--Effective at the end of
the transition period, there is authorized to be transferred
to the Corporation the functions, personnel, assets, and
liabilities of the following elements of the United States
Agency for International Development:
(1) The Office of Private Capital and Microenterprise.
(2) The enterprise funds.
(c) Sovereign Loan Guaranty Transfer.--
(1) In general.--Effective at the end of the transition
period, there is authorized to be transferred to the
Corporation or any other appropriate department or agency of
the United States Government the loan accounts and the legal
rights and responsibilities for the sovereign loan guaranty
portfolio held by the United States Agency for International
Development as in existence on the day before the date of the
enactment of this Act.
(2) Inclusion in reorganization plan.--The President shall
include in the reorganization plan submitted under section
602 a description of the transfer authorized under paragraph
(1).
(d) Bilateral Agreements.--Any bilateral agreement of the
United States in effect on the date of the enactment of this
Act that serves as the basis for programs of the Overseas
Private Investment Corporation and the Development Credit
Authority shall be considered as satisfying the requirements
of section 301(a).
(e) Transition.--During the transition period, the agencies
specified in subsection (a) shall--
(1) continue to administer the assets and obligations of
those agencies; and
(2) carry out such programs and activities authorized under
this Act as may be determined by the President.

SEC. 604. TERMINATION OF OVERSEAS PRIVATE INVESTMENT
CORPORATION AND OTHER SUPERCEDED AUTHORITIES.

Effective at the end of the transition period--
(1) the Overseas Private Investment Corporation is
terminated; and
(2) title IV of chapter 2 of part I of the Foreign
Assistance Act of 1961 (22 U.S.C. 2191 et seq.) (other than
subsections (g), (l), and (n) of section 237 of that Act) is
repealed.

SEC. 605. TRANSITIONAL AUTHORITIES.

(a) Provision of Assistance by Officials.--Until the
transfer of an agency to the Corporation under section 603,
any official having authority over or functions relating to
the agency on the day before the date of the enactment of
this Act shall provide to the Corporation such assistance,
including the use of personnel and assets, as the Corporation
may request in preparing for the transfer and integration of
the agency into the Corporation.
(b) Services and Personnel.--During the transition period,
upon the request of the Corporation, the head of any
executive agency may, on a reimbursable or non-reimbursable
basis, provide services or detail personnel to assist with
the transition.
(c) Acting Officials.--
(1) In general.--During the transition period, pending the
advice and consent of the Senate to the appointment of an
officer required by this Act to be appointed by and with such
advice and consent, the President may designate any officer
whose appointment was required to be made by and with such
advice and consent and who was such an officer before the
date of the enactment of this Act (and who continues in
office) or immediately before such designation, to act in
such office until the same is filled as provided in this Act.
While so acting, such officers shall receive compensation at
the higher of--
(A) the rates provided by this Act for the respective
offices in which they act; or
(B) the rates provided for the offices held at the time of
designation.
(2) Rule of construction.--Nothing in this Act shall be
construed to require the advice and consent of the Senate to
the appointment by the President to a position in the
Corporation of any officer whose agency is transferred to the
Corporation pursuant to this title and whose duties following
such transfer are germane to those performed before such
transfer.
(d) Transfer of Personnel, Assets, Obligations, and
Functions.--Upon the transfer of an agency to the Corporation
under section 603--
(1) the personnel, assets, and obligations held by or
available in connection with the agency shall be transferred
to the Corporation for appropriate allocation, subject to the
approval of the Director of the Office of Management and
Budget and in accordance with section 1531(a)(2) of title 31,
United States Code; and
(2) the Corporation shall have all functions--
(A) relating to the agency that any other official could by
law exercise in relation to the agency immediately before
such transfer; and
(B) vested in the Corporation by this Act or other law.

SEC. 606. SAVINGS PROVISIONS.

(a) Completed Administrative Actions.--
(1) In general.--Completed administrative actions of an
agency shall not be affected by the enactment of this Act or
the transfer of such agency to the Corporation under section
603, but shall continue in effect according to their terms
until amended, modified, superseded, terminated, set aside,
or revoked in accordance with law by an officer of the United
States or a court of competent jurisdiction, or by operation
of law.
(2) Completed administrative action defined.--In this
subsection, the term ``completed administrative action''
includes orders, determinations, rules, regulations,
personnel actions, permits, agreements, grants, contracts,
certificates, policies, licenses, registrations, and
privileges.
(b) Pending Proceedings.--
(1) In general.--Pending proceedings in an agency,
including notices of proposed rulemaking, and applications
for licenses, permits, certificates, grants, and financial
assistance, shall continue notwithstanding the enactment of
this Act or the transfer of the agency to the Corporation,
unless discontinued or modified under the same terms and
conditions and to the same extent that such discontinuance
could have occurred if such enactment or transfer had not
occurred.
(2) Orders.--Orders issued in proceedings described in
paragraph (1), and appeals therefrom, and payments made
pursuant to such orders, shall issue in the same manner and
on the same terms as if this Act had not been enacted or the
agency had not been transferred, and any such orders shall
continue in effect until amended, modified, superseded,
terminated, set aside, or revoked by an officer of the United
States or a court of competent jurisdiction, or by operation
of law.
(c) Pending Civil Actions.--Pending civil actions shall
continue notwithstanding the enactment of this Act or the
transfer of an agency to the Corporation, and in such civil
actions, proceedings shall be had, appeals taken, and
judgments rendered and enforced in the same manner and with
the same effect as if such enactment or transfer had not
occurred.
(d) References.--References relating to an agency that is
transferred to the Corporation under section 603 in statutes,
Executive orders, rules, regulations, directives, or
delegations of authority that precede such transfer or the
date of the enactment of this Act shall be deemed to refer,
as appropriate, to the Corporation, to its officers,
employees, or agents, or to its corresponding organizational
units or functions. Statutory reporting requirements that
applied in relation to such an agency immediately before the
effective date of this Act shall continue to apply

[[Page H6329]]

following such transfer if they refer to the agency by name.
(e) Employment Provisions.--
(1) Regulations.--The Corporation may, in regulations
prescribed jointly with the Director of the Office of
Personnel Management, adopt the rules, procedures, terms, and
conditions, established by statute, rule, or regulation
before the date of the enactment of this Act, relating to
employment in any agency transferred to the Corporation under
section 603.
(2) Effect of transfer on conditions of employment.--Except
as otherwise provided in this Act, or under authority granted
by this Act, the transfer pursuant to this title of personnel
shall not alter the terms and conditions of employment,
including compensation, of any employee so transferred.
(f) Statutory Reporting Requirements.--Any statutory
reporting requirement that applied to an agency transferred
to the Corporation under this title immediately before the
date of the enactment of this Act shall continue to apply
following that transfer if the statutory requirement refers
to the agency by name.

SEC. 607. OTHER TERMINATIONS.

Except as otherwise provided in this Act, whenever all the
functions vested by law in any agency have been transferred
pursuant to this title, each position and office the
incumbent of which was authorized to receive compensation at
the rates prescribed for an office or position at level II,
III, IV, or V of the Executive Schedule under subchapter II
of chapter 53 of title 5, United States Code, shall
terminate.

SEC. 608. INCIDENTAL TRANSFERS.

The Director of the Office of Management and Budget, in
consultation with the Corporation, is authorized and directed
to make such additional incidental dispositions of personnel,
assets, and liabilities held, used, arising from, available,
or to be made available, in connection with the functions
transferred by this title, as the Director may determine
necessary to accomplish the purposes of this Act.

SEC. 609. REFERENCE.

With respect to any function transferred under this title
(including under a reorganization plan under section 602) and
exercised on or after the date of the enactment of this Act,
reference in any other Federal law to any department,
commission, or agency or any officer or office the functions
of which are so transferred shall be deemed to refer to the
Corporation or official or component of the Corporation to
which that function is so transferred.

SEC. 610. CONFORMING AMENDMENTS.

(a) Exempt Programs.--Section 255(g) of the Balanced Budget
and Emergency Deficit Control Act of 1985 (2 U.S.C. 905(g))
is amended by striking ``Overseas Private Investment
Corporation, Noncredit Account (71-4184-0-3-151).'' and
inserting ``United States International Development Finance
Corporation.''.
(b) Executive Schedule.--Title 5, United States Code, is
amended--
(1) in section 5314, by striking ``President, Overseas
Private Investment Corporation.'';
(2) in section 5315, by striking ``Executive Vice
President, Overseas Private Investment Corporation.''; and
(3) in section 5316, by striking ``Vice Presidents,
Overseas Private Investment Corporation (3).''.
(c) Office of International Trade of the Small Business
Administration.--Section 22 of the Small Business Act (15
U.S.C. 649) is amended--
(1) in subsection (b), in the matter preceding paragraph
(1), by striking ``the President of the Overseas Private
Investment Corporation, Director'' and inserting ``the Board
of Directors of the United States International Development
Finance Corporation, the Director''; and
(2) by striking ``Overseas Private Investment Corporation''
each place it appears and inserting ``United States
International Development Finance Corporation''.
(d) United States and Foreign Commercial Service.--Section
2301 of the Export Enhancement Act of 1988 (15 U.S.C. 4721)
is amended by striking ``Overseas Private Investment
Corporation'' each place it appears and inserting ``United
States International Development Finance Corporation''.
(e) Trade Promotion Coordinating Committee.--Section
2312(d)(1)(K) of the Export Enhancement Act of 1988 (15
U.S.C. 4727(d)(1)(K)) is amended by striking ``Overseas
Private Investment Corporation'' and inserting ``United
States International Development Finance Corporation''.
(f) Interagency Trade Data Advisory Committee.--Section
5402(b) of the Omnibus Trade and Competitiveness Act of 1988
(15 U.S.C. 4902(b)) is amended by striking ``the President of
the Overseas Private Investment Corporation'' and inserting
``the Chief Executive Officer of the United States
International Development Finance Corporation''.
(g) Misuse of Names of Federal Agencies.--Section 709 of
title 18, United States Code, is amended by striking ``
`Overseas Private Investment', `Overseas Private Investment
Corporation', or `OPIC','' and inserting `` `United States
International Development Finance Corporation' or `DFC' ''.
(h) Engagement on Currency Exchange Rate and Economic
Policies.--Section 701(c)(1)(A) of the Trade Facilitation and
Trade Enforcement Act of 2015 (19 U.S.C. 4421(c)(1)(A)) is
amended by striking ``Overseas Private Investment
Corporation'' and inserting ``United States International
Development Finance Corporation''.
(i) Internships With Institute for International Public
Policy.--Section 625 of the Higher Education Act of 1965 (20
U.S.C. 1131c(a)) is amended by striking ``Overseas Private
Investment Corporation'' and inserting ``United States
International Development Finance Corporation''.
(j) Foreign Assistance Act of 1961.--The Foreign Assistance
Act of 1961 (22 U.S.C. 2151 et seq.) is amended--
(1) in section 449B(b)(2) (22 U.S.C. 2296b(b)(2)), by
striking ``Overseas Private Investment Corporation'' and
inserting ``United States International Development Finance
Corporation''; and
(2) in section 481(e)(4)(A) (22 U.S.C. 2291(e)(4)(A)), in
the matter preceding clause (i), by striking ``(including
programs under title IV of chapter 2, relating to the
Overseas Private Investment Corporation)'' and inserting
``(and any support under title II of the Better Utilization
of Investments Leading to Development Act of 2018, relating
to the United States International Development Finance
Corporation)''.
(k) Electrify Africa Act of 2015.--Sections 5 and 7 of the
Electrify Africa Act of 2015 (Public Law 114-121; 22 U.S.C.
2293 note) are amended by striking ``Overseas Private
Investment Corporation'' each place it appears and inserting
``United States International Development Finance
Corporation''.
(l) Foreign Aid Transparency and Accountability Act of
2016.--Section 2(3) of the Foreign Aid Transparency and
Accountability Act of 2016 (Public Law 114-191; 22 U.S.C.
2394c note) is amended--
(1) in subparagraph (A), by striking ``except for'' and all
that follows through ``chapter 3'' and insert ``except for
chapter 3'';
(2) in subparagraph (C), by striking ``and'' at the end;
(3) in subparagraph (D), by striking the period at the end
and inserting ``; and''; and
(4) by adding at the end the following:
``(E) the Better Utilization of Investments Leading to
Development Act of 2018.''.
(m) Support for East European Democracy (SEED) Program.--
The Support for East European Democracy (SEED) Act of 1989
(22 U.S.C. 5401 et seq.) is amended--
(1) in section 2(c) (22 U.S.C. 5401(c)), by striking
paragraph (12) and inserting the following:
``(12) United states international development finance
corporation.--Programs of the United States International
Development Finance Corporation.''; and
(2) in section 201(e) (22 U.S.C. 5421(e)), by striking
``Agency for International Development'' and inserting
``United States International Development Finance
Corporation''.
(n) Cuban Liberty and Democratic Solidarity (LIBERTAD) Act
of 1996.--Section 202(b)(2)(B)(iv) of the Cuban Liberty and
Democratic Solidarity (LIBERTAD) Act of 1996 (22 U.S.C.
6062(b)(2)(B)(iv)) is amended by striking ``Overseas Private
Investment Corporation'' and inserting ``United States
International Development Finance Corporation''.
(o) International Religious Freedom Act of 1998.--Section
405(a)(10) of the International Religious Freedom Act of 1998
(22 U.S.C. 6445(a)(10)) is amended by striking ``Overseas
Private Investment Corporation'' and inserting ``United
States International Development Finance Corporation''.
(p) Trafficking Victims Protection Act of 2000.--Section
103(8)(A) of the Trafficking Victims Protection Act of 2000
(22 U.S.C. 7102(8)(A)) is amended in clause (viii) to read as
follows:
``(viii) any support under title II of the Better
Utilization of Investments Leading to Development Act of 2018
relating to the United States International Development
Finance Corporation; and''.
(q) Technology Deployment in Developing Countries.--Section
732(b) of the Global Environmental Protection Assistance Act
of 1989 (22 U.S.C. 7902(b)) is amended by striking ``Overseas
Private Investment Corporation'' and inserting ``United
States International Development Finance Corporation''.
(r) Expanded Nonmilitary Assistance for Ukraine.--Section
7(c)(3) of the Ukraine Freedom Support Act of 2014 (22 U.S.C.
8926(c)(3)) is amended--
(1) in the paragraph heading, by striking ``Overseas
private investment corporation'' and inserting ``United
states international development finance corporation'';
(2) in the matter preceding subparagraph (A), by striking
``Overseas Private Investment Corporation'' and inserting
``United States International Development Finance
Corporation''; and
(3) in subparagraph (B), by striking ``by eligible
investors (as defined in section 238 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2198))''.
(s) Global Food Security Act of 2016.--Section 4(7) of the
Global Food Security Act of 2016 (22 U.S.C. 9303(7)) is
amended by striking ``Overseas Private Investment
Corporation'' and inserting ``United States International
Development Finance Corporation''.
(t) Sense of Congress on European and Eurasian Energy
Security.--Section 257(c)(2)(B) of the Countering Russian
Influence in Europe and Eurasia Act of 2017 (22 U.S.C.
9546(c)(2)(B)) is amended by striking ``Overseas Private
Investment Corporation'' and inserting ``United States
International Development Finance Corporation''.

[[Page H6330]]

(u) Wholly Owned Government Corporation.--Section 9101(3)
of title 31, United States Code, is amended by striking
``Overseas Private Investment Corporation'' and inserting
``United States International Development Finance
Corporation''.
(v) Energy Independence and Security Act of 2007.--Title IX
of the Energy Independence and Security Act of 2007 (42
U.S.C. 17321 et seq.) is amended--
(1) in section 914 (42 U.S.C. 17334)--
(A) in the section heading, by striking ``overseas private
investment corporation'' and inserting ``united states
international development finance corporation'';
(B) in subsection (a), in the matter preceding paragraph
(1), by striking ``Overseas Private Investment Corporation''
and inserting ``United States International Development
Finance Corporation''; and
(C) in subsection (b), in the matter preceding paragraph
(1), by striking ``Overseas Private Investment Corporation
shall include in its annual report required under section
240A of the Foreign Assistance Act of 1961 (22 U.S.C.
2200a)'' and inserting ``United States International
Development Finance Corporation shall include in its annual
report required under section 403 of the Better Utilization
of Investments Leading to Development Act of 2018''; and
(2) in section 916(a)(2)(I) (42 U.S.C. 17336(a)(2)(I)), by
striking ``Overseas Private Investment Corporation:'' and
inserting ``United States International Development Finance
Corporation;''.
(w) Effective Date.--The amendments made by this section
shall take effect at the end of the transition period.

The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
California (Mr. Royce) and the gentleman from California (Mr. Sherman)
each will control 20 minutes.
The Chair recognizes the gentleman from California (Mr. Royce).

General Leave

Mr. ROYCE of California. Mr. Speaker, I ask unanimous consent that
all Members may have 5 legislative days to revise and extend their
remarks and to include any extraneous material in the Record.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from California?
There was no objection.
Mr. ROYCE of California. Mr. Speaker, I yield myself such time as I
may consume.
Mr. Speaker, this is the BUILD Act. Across the globe, lack of access
to capital is constraining economic growth, especially in the world's
least developed countries.
According to the International Finance Corporation, micro, small, and
medium-sized enterprises have an unmet financing need of more than $5
trillion every year in emerging markets, depriving them of the capital
that they need to grow. Foreign investment is critical to empowering
entrepreneurs, critical to creating jobs and to reducing poverty.
Our country has an undeniable interest in supporting the development
of vibrant and stable economies around the world. Healthy private
sectors promote good governance and support thriving civil societies.
It helps reduce civil strife. The resulting stability is good for our
national security and also benefits U.S. exports and jobs.
Increasingly, other countries are working to advance their economic
and political interests by shaping overseas markets. China's One Belt,
One Road initiative is estimated at $1 trillion. This dwarfs the size
of the Marshall Plan that rebuilt war-torn Europe in the 1940s and
1950s.
Across Africa, Asia, and beyond, Beijing is making massive
investments in new construction and infrastructure projects, from the
headquarters of the African Union to a port in Djibouti, where both the
U.S. and China now have military bases. Beijing now owns 80 percent of
this strategically located African nation's foreign debt.
As the president and CEO of OPIC, the Overseas Private Investment
Corporation, testified to the Foreign Affairs Committee, his words: ``A
condition of many of these loans is that Chinese firms, and labor, get
the business. . . . This state-directed approach is not consistent with
our values, which incorporate the high standards of international
financial institutions related to governance, transparency, debt
sustainability, environmental, and social safeguards.''
Chinese development practices have often left countries worse off--
and I have seen this with my own eyes--putting some countries into debt
distress. Last December, Sri Lanka gave control of the strategic Sri
Lankan port to Beijing for 99 years after it could not repay the
Chinese-backed loans to fund it. That granted Beijing a foothold in the
Indian Ocean and its critical shipping lanes.
And due to Beijing's ``no strings attached'' financing, some of
Africa's most brutal regimes have been thrown an economic lifeline that
undermines democratic governance. Unlike the United States, Beijing
does not have an anti-corruption standard. It is willing to fund just
about any government, from Venezuela to Sudan.
The U.S. cannot and should not match China's investments dollar-for-
dollar, but we can and should do more to support international economic
development with partners who have embraced the private sector-driven
development model.
However, America's development finance tool kit, which is spread
across multiple agencies, is limited, it is duplicative, it is
uncoordinated. So the BUILD Act will address these shortcomings. It
will modernize America's antiquated development finance capabilities to
address the challenges of this century. Specifically, it will merge
OPIC and USAID's development credit authority into a standalone U.S.
international development finance corporation with new authorities.

{time} 1715

Among these new authorities will be the ability to cofinance projects
with our allies like the U.K.
What this is going to do, just on the U.S. side, is this is going to
double their book of business.
Through the provision of loans and guarantees and limited equity
investments and feasibility studies, political risk insurance, and
other investments of support, the new Development Finance Corporation
will mobilize private capital to provide countries a competitive
alternative to the state-directed approach of Beijing and Moscow.
I am pleased that this bill doesn't just merge existing functions
together but also includes critical reforms to protect taxpayers, to
improve government efficiency, and to make America's development
finance toolkit very effective. Notably, it adopts many of the same
principles as the Millennium Challenge Corporation, including the
constraints analysis, which directs investment to where it will have
the most impact.
This bill will create a dedicated inspector general of the new
corporation. It will require that the corporation prioritize support in
the poorest countries and those making continual progress towards
economic policies that support free enterprise, and it will create
lasting institutional linkages between the Development Finance
Corporation and other development agencies.
This bill has got strong support from the White House, which made it
a priority in its National Security Strategy and 2019 budget.
In short, the BUILD Act represents a major opportunity for this
Congress and the executive branch to transform and modernize our
Nation's tools to support global development and increase opportunities
for American entrepreneurs in these emerging markets.
Mr. Speaker, I reserve the balance of my time.

House of Representatives, Committee on Transportation and
Infrastructure,
Washington, DC, July 16, 2018.
Hon. Ed Royce,
Chairman, Committee on Foreign Affairs, Washington, DC.
Dear Chairman Royce: I write concerning H.R. 5105, the
Better Utilization of Investments Leading to Development Act
of2018. This legislation includes matters that I believe fall
within the Rule X jurisdiction of the Committee on
Transportation and Infrastructure.
In order to expedite floor consideration of H.R. 5105, the
Committee on Transportation and Infrastructure will forgo
action on this bill. However, this is conditional on our
mutual understanding that forgoing consideration of the bill
does not prejudice the Committee with respect to the
appointment of conferees or to any future jurisdictional
claim over the subject matters contained in the bill or
similar legislation that fall within the Committee's Rule X
jurisdiction. Further, I appreciate your agreement to
incorporate changes suggested by the Committee on
Transportation and Infrastructure into the bill prior to
floor consideration. Finally, should a conference on the bill
be necessary, I ask that you support my request to have the
Committee represented on the conference committee.
Please place a copy of this letter and your response
acknowledging our jurisdictional interest in the
Congressional Record during House Floor consideration of the
bill. I look

[[Page H6331]]

forward to working with the Committee on Foreign Affairs as
the bill moves through the legislative process,
Sincerely,
Bill Shuster,
Chairman.
____

House of Representatives,

Committee on Foreign Affairs,

Washington, DC, July 16, 2018.
Hon. Bill Shuster,
Chairman, Committee on Transportation and Infrastructure,
Washington, DC.
Dear Chairman Shuster: Thank you for consulting with the
Foreign Affairs Committee and agreeing to forgo a sequential
referral request on H.R. 5105, the Better Utilization of
Investments Leading to Development (BUILD) Act of 2018, so
that the bill may proceed expeditiously to the House floor.
Edits requested by your committee have been incorporated in
the bill text scheduled for consideration by the House.
I agree that your forgoing further action on this measure
does not in any way diminish or alter the jurisdiction of
your committee, or prejudice its jurisdictional prerogatives
on this bill or similar legislation in the future. I would
support your effort to seek appointment of an appropriate
number of conferees from your committee to any House-Senate
conference on this legislation.
I will seek to place our letters on H.R. 5105 into the
Congressional Record during floor consideration. I appreciate
your cooperation regarding this legislation and look forward
to continuing to work together as this measure moves through
the legislative process.
Sincerely,
Edward R. Royce,
Chairman.

Mr. SHERMAN. Mr. Speaker, I yield myself as much time as I may
consume.
Mr. Speaker, I rise in support of H.R. 5105.
H.R. 5105, the BUILD Act, which stands for Better Utilization of
Investments Leading to Development Act, modernizes our international
development finance system. It does so by consolidating the existing
Overseas Private Investment Corporation, which has the most unfortunate
acronym in the Federal Government, since it is referred to as OPIC and
is often confused with OPEC. It consolidates that organization into the
new Development Finance Corporation.
I am pleased to be a cosponsor of this important measure.
I want to start by commending the lead sponsors of this bipartisan
bill, the gentleman from Florida (Mr. Yoho), whom I am pleased to work
with on the Asia and the Pacific Subcommittee, where he serves as
chairman and I serve as ranking member; and the second lead sponsor of
this legislation, the gentleman from Washington (Mr. Smith), the
ranking member of the Armed Services Committee.
It has been more than a decade since Congress last updated OPIC's
charter. The landscape in development finance has changed
substantially, and we now need a new approach to the way our government
uses financial instruments to spur economic development and tackle
poverty in the developing world.
Mr. Speaker, I particularly want to thank the leadership of the
committee and the sponsors of the legislation for accepting four of my
amendments.
The first of these requires a certification from the new DFC, or
Development Finance Corporation, that the corporations that benefit
from their investment and their affiliates do not conduct any activity
which is the subject of U.S. sanctions. This is an important safeguard
to ensure that entities that engage in contact that violates U.S.
Government sanctions do not benefit from U.S. Government financing.
Simply prohibiting the support of sanctioned entities is not enough.
We need an affirmative statement from prospective beneficiaries of the
DFC that they and their affiliates are in compliance with American
sanctions law.
Second, the new agency will need to consider whether the benefiting
entity is participating in a foreign boycott that is at cross-purposes
with American foreign policy. The U.S. should not be in the business of
providing assistance to entities that participate in discriminatory
boycotts against foreign countries.
Since the 1970s, we have had on the books laws designed to prevent
our corporations from participating in the Arab League boycott of
Israel. It is common sense that the DFC, when it is selecting projects,
should take this into consideration. So my amendment will do just that.
I should point out that there is another amendment that I would have
offered, but, instead, we secured a letter from OPIC that will be
binding policy on the new DFC stating that the DFC will not finance
regional projects in the Caucasus that are designed to exclude Armenia.
If it doesn't make geographic sense that a regional railroad or road or
other activity excludes Armenia, then that is OPIC policy that will be
carried forward with the new agency that this will not be financed by
the DFC.
Mr. Speaker, I include the following letters from OPIC in the Record.

Overseas Private

Investment Corporation,

Washington, DC, May 8, 2018.
Hon. Brad Sherman,
House of Representatives,
Washington, DC.
Dear Congressman Sherman: Thank you for your continued
support of U.S. development finance, including your support
for H.R. 5105, the BUILD Act. Knowing of your long-standing
support for Armenia, I wanted to clarify an issue raised by
your office in writing.
The Overseas Private Investment Corporation will not
support regional projects in the Caucasus that deliberately,
by design or effect, exclude Armenia from participation or
benefit, unless such exclusion is necessitated by geographic
or economic impracticality. As you know, when the BUILD Act
legislation is enacted into law, the functions, personnel,
assets, liabilities and policies of OPIC will transfer to the
U.S. Development Finance Corporation. Accordingly, this will
become the policy of the DFC.
Again, thank you for your continued support.
Regards,
Cameron S. Alford,
Deputy General Counsel, Projects.
____

Overseas Private

Investment Corporation,

Washington, DC, May 8, 2018.
Hon, Brad Sherman,
House of Representatives,
Washington, DC.
Dear Congressman Sherman: Thank you for your continued
support of U.S. development finance, including your support
for H.R. 5105, the BUILD Act. I wanted to clarify an issue
raised by your office in writing.
The Overseas Private Investment Corporation's Environmental
and Social Policy Statement (ESPS) includes OPIC's greenhouse
gas policy developed pursuant to Section 7079(b) of division
F of the Consolidated Appropriations Act, 2010 (Public Law
111-117; 123 Stat. 3396). As a result of the inclusion of the
word ``policies'' in Section 606(a)(2) of the BUILD Act
Amendment in the Nature of a Substitute, OPIC's ESPS will be
transferred to the U.S. Development Finance Corporation.
Accordingly, this will become the policy of the DFC.
Again, thank you for your continued support.
Regards,
Cameron S. Alford,
Deputy General Counsel, Projects.

Mr. SHERMAN. Mr. Speaker, the third amendment that I thank the
sponsors for agreeing to requires an annual report from the new DFC on
its compliance with its own human rights, labor, environmental, and
social policies.
OPIC maintains robust environmental and social policies. This bill
carries those policies forward so the new DFC will follow them and will
now make an annual report so that Congress can see whether these
policies are actually being implemented.
The fourth such amendment states that, as to the four public
nongovernmental members of the DFC board, that we take into account
their experience in international environmental, developmental, and
labor organizations. There are a number of other factors that go into
selecting the public members of the board, but certainly experience in
the environment and labor ought to be taken into consideration.
The BUILD Act updates U.S. development finance and, I think, will
complement our foreign assistance efforts. With this bill, we can keep
the U.S. as a global leader in promoting economic prosperity around the
world while, at the same time, encouraging American jobs.
I support this measure and hope my colleagues will join me in doing
so. Once again, this bill had a unanimous, bipartisan voice vote in our
committee.
Mr. Speaker, I reserve the balance of my time.
Mr. ROYCE of California. Mr. Speaker, I yield 4 minutes to the
gentleman from Florida (Mr. Yoho). He is the chairman of the Foreign
Affairs Subcommittee on Asia and the Pacific, and he is the author of
this legislation.
Mr. YOHO. Mr. Speaker, I am excited to speak on behalf of H.R. 5105,
the

[[Page H6332]]

BUILD Act, and urge its passage in this Chamber.
Mr. Speaker, I would like to thank Chairman Royce, Ranking Member
Engel, Ranking Member Sherman, and my lead cosponsor, Adam Smith of
Washington, for the hard work they and their teams have done to bring
this bill to the floor. These gentlemen worked tirelessly along with
their teams. I would also like to give a shout-out to our legislative
director, James Walsh, who did yeoman's work for this bill.
Today, America is confronting unprecedented instability and growing
humanitarian crises around the world, all of which have a direct impact
on our national security and economic interests here at home.
Delivering effective U.S. foreign assistance is crucial, especially
in the current fiscal climate in which it is imperative for the U.S.
Government to use every dollar more efficiently and effectively. The
BUILD Act will ensure the United States delivers foreign assistance
both effectively and efficiently by catalyzing the private sector to
invest in developing countries.
Of our top 15 trading partners, 12 of them were once recipients of
foreign aid. Forty-three of our top 50 consumer nations of American
agriculture products were once U.S. foreign aid recipients.
Additionally, 95 percent of the world's consumers live outside of the
United States, and the poorest two-thirds of the world now represent
about $5 trillion in purchasing power. Their markets are growing faster
than many of our traditional partners and are central to the future of
America's economic prosperity, job growth, and security.
It is imperative to the United States economy that we seize upon
these opportunities and make the investment now so that we may reap the
benefits down the road. One of the ways to do this is to make our
development finance more efficient and nimble.
U.S. businesses have the capital to invest and lead the world in the
understanding of capital markets and sophisticated financial
transactions, generally delivering investments in infrastructure and
other industries quicker and less expensively.
Despite our comparative advantage, other countries, especially China,
are using development finance institutions more effectively to expand
their influence into the developing world, even here in the Western
Hemisphere in the country of Haiti.
Our tools for development finance are dispersed across too many
Federal agencies and need to be streamlined. The primary U.S.
development agency, OPIC, has not been significantly updated since its
creation in 1971. The BUILD Act will modernize all foreign finance
development and bring it into the 21st century.
As you can imagine, the world of financial development has vastly
changed since 1970, as all things do, to stay competitive. A modernized
Development Finance Corporation is imperative to capitalizing upon
those changes. It will help transition countries from aid to trade.
We want to help countries become robust trading partners with the
United States. By doing so, we will be helping create stable, self-
sufficient societies around the world and open new markets for U.S.
goods and services. If we are trading goods, economies are growing,
they are growing stronger, and relationships are forged, increasing
national security.
There is truth to the saying, ``a rising tide lifts all boats.'' The
BUILD Act will help make this a reality by transitioning recipient
countries again from aid to trade.
In addition to improving efficiency, the BUILD Act also creates a
more significant amount of oversight and increases the United States'
development effectiveness.
The BUILD Act empowers the new Development Finance Corporation, as
Secretary Pompeo testified to the Senate, ``to have the flexibility to
identify a development need, bring to bear the right resources over the
right period and manage it in a way that effectively delivers the
outcome and measures it all along the way.''
Mr. Speaker, I urge my colleague to pass the BUILD Act.
Mr. SHERMAN. Mr. Speaker, I yield 3 minutes to the gentleman from
Washington (Mr. Smith), the ranking member of the Armed Services
Committee and the lead Democratic sponsor of this bill.
Mr. SMITH of Washington. Mr. Speaker, first of all, I really want to
thank Congressman Yoho. We have worked together on this bill. We have
also worked together as co-chairs of the Caucus for Effective Foreign
Assistance. This bill really shows the bipartisan support on the
committee.
I certainly want to thank the chairman and the ranking member for
their work, as well, towards a very important goal, and that is to make
more effective use of U.S. foreign aid and foreign development.
It is a crucial tool right now in the world. We need as many friends
and as many partners as we can find in the world. Development through
USAID and other agencies is a crucial way that we build the
relationships and, as has been mentioned by all three of the previous
speakers, as importantly, build the capacity of our partners to have a
strong economy and to grow.
What this bill does is it makes our foreign investment policy better,
more cohesive, and more robust. It enables that agency to invest in the
projects that are necessary to help it be successful by expanding what
it can do, by expanding its ability to work with other partners, to
work with the private sector, and, crucially, to take an equity stake
in some of their investments, something that current law prohibits.
This will greatly expand their ability to find projects across the
developing world to invest in and help grow these countries and move
them forward.
The overall goal of foreign aid is to make sure that there,
hopefully, at some point, are no countries in the world that can't
provide for their people, to go after poverty, to reduce it wherever we
can.
There are a lot of different projects that are important to foreign
aid. Certainly, global health, education, and direct assistance all
play a crucial role. But I would submit that nothing is more important
than enabling these countries to develop their own economy by giving
them the capital they need to invest in projects and grow businesses so
that they become self-sustaining partners.
This bill does a crucially important job in making sure that the U.S.
contribution to that effort is as effective as it possibly can be. It
lives up to the name of our caucus, effective foreign assistance. This
is critically important.
A lot of times people think of foreign aid as being, well, that is
just sort of a leftwing issue. Well, I want you to know there is true
bipartisan support in this Congress by Republicans and Democrats to
improve the quality of our foreign aid.

{time} 1730

I thank Congressman Yoho for his leadership on that. He has done a
great job in making sure that this is a bipartisan issue because it is
crucial that we reduce poverty and improve security across the globe,
and it is also crucial that the U.S., as the largest, strongest economy
in the world, plays a strong role in that effort.
This bill will put us in a better position to do precisely that. I
will also say, I think this is but the first of many efforts that we
can have on improving the quality of foreign aid, of making it more
effective and more robust. It is worth noting that this bill also
expands the amount of money that is available to our foreign lending.
It gives them more money to deal with.
I strongly support this bill, this bipartisan effort, and I
appreciate Congressman Yoho's leadership. I look forward to continuing
to work with him on this and many other issues.

General Leave

Mr. ROYCE of California. Mr. Speaker, I ask unanimous consent that
all Members have 5 legislative days to revise and extend their remarks
and include extraneous material on H.R. 4989.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from California?
There was no objection.
Mr. ROYCE of California. Mr. Speaker, I continue to reserve the
balance of my time.
Mr. SHERMAN. Mr. Speaker, in closing, I want to commend the sponsors
of this legislation and the leadership of our committee. I urge an
``aye'' vote,

[[Page H6333]]

and I point out that this bill received a unanimous bipartisan voice
vote in our committee, and I yield back the balance of my time.
Mr. ROYCE of California. Mr. Speaker, I ask for an ``aye'' vote on
the bill, and I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from California (Mr. Royce) that the House suspend the rules
and pass the bill, H.R. 5105, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.

____________________