[Congressional Record (Bound Edition), Volume 145 (1999), Part 12]
[House]
[Page 17750]
[From the U.S. Government Publishing Office, www.gpo.gov]



            CLARIFYING EXPORT-IMPORT BANK BOARD REQUIREMENTS

  Mr. LEACH. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 2565) to clarify the quorum requirement for the Board of 
Directors of the Export-Import Bank of the United States, as amended.
  The Clerk read as follows:

                               H.R. 2565

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

     SECTION 1. CLARIFICATION OF QUORUM REQUIREMENT FOR THE 
                   EXPORT-IMPORT BANK OF THE UNITED STATES.

       (a) In General.--Section 3(c)(6) of the Export-Import Bank 
     Act of 1945 (12 U.S.C. 635a(c)(6)) is amended to read as 
     follows:
       ``(6) A quorum of the Board of Directors shall consist of 
     at least 3 members.''.
       (b) Exception.--Notwithstanding section 3(c)(6) of the 
     Export-Import Bank Act of 1945, if, during the period that 
     begins on July 21, 1999, and ends on October 1, 1999, there 
     are fewer than 3 persons holding office on the Board of 
     Directors of the Export-Import Bank of the United States, the 
     entire membership of such Board of Directors shall constitute 
     a quorum until the end of such period.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Iowa (Mr. Leach) and the gentleman from Pennsylvania (Mr. Kanjorski) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Iowa (Mr. Leach).
  Mr. LEACH. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H.R. 2565, a bill to clarify the 
quorum requirements for the Export-Import Bank of the United States. 
This bill is designed to remedy a serious problem that has developed 
with regard to vacancies in Ex-Im's Board of Directors. Without prompt 
congressional action, this situation could result in the suspension of 
the Bank's ability to make new financial commitments and jeopardize 
billions of dollars in pending U.S. export transactions.
  The background is as follows: The Bank's charter requires a quorum of 
its five-member board in order to conduct business. Prior to July 20, 
two vacancies existed on the board. On July 21, the term of a third 
board member expired.
  Although there is some ambiguity as to whether the quorum requirement 
refers to a majority of the statutorily prescribed five-person board 
or, instead, to a majority of board members currently in office, the 
former interpretation is legally preferable.
  As explained in legal analysis provided by the General Accounting 
Office, the quorum requirement for the five-member board necessarily 
requires at least three members to be present and transact the board's 
business. Thus, with only two incumbent members, the board lacks its 
legally required quorum.
  This unfortunate problem is compounded by the fact that no 
nominations have been made for these vacancies, nor has any intent to 
nominate been sent to the other body. In this awkward circumstance, 
Congress has no alternative but to act expeditiously to advance the 
Nation's interest and remedy this situation. Failure to do so would put 
America's exports and American jobs at risk.
  Therefore, H.R. 2565 clarifies Ex-Im's charter by explicitly 
providing that a quorum of the board shall consist of three members. At 
the same time, it provides the Bank with authority to continue 
operations with only two members of the board until October 1 of this 
year. This brief window should provide sufficient time for the 
administration to forward qualified nominees and for their expeditious 
consideration in the other body.
  I would like to thank the gentleman from New York (Mr. LaFalce) for 
his leadership and cooperation on this issue. Likewise, I would like to 
express my appreciation for the leadership of the gentleman from 
Alabama (Mr. Callahan), the gentleman from Washington (Mr. Metcalf), 
the gentleman from Illinois (Mr. Manzullo), and the gentleman from 
Alabama (Mr. Bachus), the chairman of the Subcommittee on Domestic and 
International Monetary Policy.
  Mr. Speaker, I urge adoption of this bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. KANJORSKI. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, first, may I clarify for the Record that, unfortunately, 
the gentleman from New York (Mr. LaFalce) wanted to be here today to 
support this legislation, but his plane has been tied up, and he is 
unable to make it and asked me to substitute.
  Mr. Speaker, I rise in support of H.R. 2565. This legislation, as 
amended, permits the Export-Import Bank to operate with only two board 
members until October 1, 1999. During this interim period, the other 
body should be in a position to confirm additional board members.
  This legislation is necessary to allow the bank to make legally-
binding financing commitments on nearly $7 billion in pending U.S. 
export transactions. Mr. Speaker, in this era of record trade deficits, 
we must ensure that significant export transactions continue 
uninterrupted. Continued operation of the Export-Import Bank will allow 
U.S. companies to compete on a level playing field with their 
counterparts in other industrialized nations, who also have access to 
the important export financing tools, such as loan guarantees, that are 
offered by the Export-Import Bank.
  Mr. Speaker, I wish to commend the gentleman from Iowa (Mr. Leach), 
chairman of the Committee on Banking and Financial Services, for 
sponsoring this legislation, and I urge all my colleagues to support 
it.
  Mr. Speaker, I reserve the balance of my time.
  Mr. LEACH. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I simply want to thank the gentleman from Pennsylvania 
(Mr. Kanjorski) for his assistance on this issue and for his long-time 
quality representation on the House Committee on Banking and Financial 
Services.
  This is an issue primarily between the Executive Branch and the other 
body, but it is something that requires a shift in law, and this body, 
I think, at this time ought to recognize that particular problem and 
move as cooperatively as possible with the other body and the Executive 
Branch in this issue.
  Mr. LEACH. Mr. Speaker, I yield back the balance of my time.
  Mr. KANJORSKI. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Iowa (Mr. Leach) that the House suspend the rules and 
pass the bill, H.R. 2565, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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