[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.

       (C) Requirements for nongovernment members.--A member of 
     the Board described in subparagraph (A)(iii)--

[[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.

                          ____________________