[House Report 105-282]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

1st Session                                                     105-282
_______________________________________________________________________


 
 PROVIDING FOR THE CONSIDERATION OF H.R. 1370, THE REAUTHORIZATION OF 
                         THE EXPORT-IMPORT BANK
                                _______
                                

 September 29, 1997.--Referred to the House Calendar and ordered to be 
                                printed

_______________________________________________________________________


    Mr. Dreier, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 255]

    The Committee on Rules, having had under consideration 
House Resolution 255, by a non-record vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

               brief summary of provisions of resolution

    The resolution provides for the consideration of H.R. 1370, 
the ``Reauthorization of the Export-Import Bank,'' under a 
modified closed rule. The rule provides one hour of general 
debate divided equally between the chairman and ranking 
minority member of the Committee on Banking and Financial 
Services.
    The rule provides for consideration of the committee 
amendment in the nature of a substitute now printed in the bill 
as an original bill for the purpose of amendment under the five 
minute rule. The rule waives points of order against the 
amendment in the nature of a substitute for failure to comply 
with clause 7 of rule XVI (relating to germaneness).
    The rule makes in order only those amendments printed in 
the Rules Committee report and provides that each amendment may 
be offered only in the order printed in the report, may be 
offered only by a Member designated in the report, shall be 
considered as read, shall be debatable for the time specified 
in the report equally divided and controlled by the proponent 
and an opponent, shall not be subject to amendment, and shall 
not be subject to a demand for division of the question in the 
House or in the Committee of the Whole. The rule grants 
authority to the Chairman of the Committee of the Whole 
postpone recorded votes and reduce voting time to five minutes 
provided that the first vote in a series is not less than 
fifteen minutes.
    Finally, the rule provides for one motion to recommit, with 
or without instructions.

 summary of amendments made in order by the rule on h.r. 1370--export-
                    import bank reauthorization act

    1. Evans--10 minutes: Directs the Export-Import Bank to 
give a preference to U.S. firms who are seeking assistance for 
activities in China and who have adopted and adhered to a code 
of conduct for their international operations. Requires the 
Export-Import Bank to work with the Clearinghouse on Corporate 
Responsibility (being developed by the Dept. of Commerce) to 
provide the bank's recipients with information on resources and 
organizations which assist in developing, implementing, and 
monitoring codes of conduct.
    2. Frank (MA)--10 minutes: Requires community work 
requirements for members of Boards of Directors of firms 
receiving assistance from the Export-Import Bank.
    3. LaFalce--10 minutes: Renames the Export-Import Bank as 
the ``American Export Bank''.
    4. Rohrabacher--10 minutes: Prohibits the Export-Import 
Bank from insuring, guaranteeing, extending credit or 
participating in an extension of credit for any transaction 
involving the import or export of any good or service, if any 
company involved is at least 50% owned by the government or 
military of a foreign country.
    5. Rohrabacher--10 minutes: Prohibits the Export-Import 
Bank from insuring, guaranteeing, extending credit or 
participating in an extension of credit in connection with a 
transaction involving an entity owned by a government which is 
not chosen through free and fair elections, as certified by the 
President of the U.S., or which lacks an independent judicial 
system; or, for the import or export of any good or service 
involving such a country.
    6. Solomon--10 minutes: Prohibits Ex-Im subsidies of 
exports to Russia if Russia transfers an SS-N-22 or SS-N-26 
missile system to Communist China.
    7. Vento--10 minutes: Prohibits the use of Export-Import 
Bank assistance for exports to companies that employ child 
labor.

1. An Amendment To Be Offered by Representative Evans of Illinois, or a 
                   Designee, Debatable for 10 Minutes

    At the end of the bill, add the following:

SEC. 10. PREFERENCE IN EXPORT-IMPORT BANK ASSISTANCE FOR EXPORTS TO 
                    CHINA TO BE PROVIDED TO COMPANIES ADHERING TO CODE 
                    OF CONDUCT.

    (a) In General.--Section 2 of the Export-Import Bank Act of 
1945 (12 U.S.C. 635) is amended by adding at the end the 
following:
    ``(f) Preference in Assistance for Exports to China To Be 
Provided to Entities Adhering to Code of Conduct.--
          ``(1) Prohibitions.--
                  ``(A) In general.--In determining whether to 
                guarantee, insure, extend credit, or 
                participate in the extension of credit with 
                respect to the export of goods or services 
                destined for the People's Republic of China, 
                the Board of Directors shall give preference to 
                entities that the Board of Directors determines 
                have established and are adhering to the code 
                of conduct set forth in paragraph (2).
                  ``(B) Penalty for violation.--The Bank shall 
                withdraw any guarantee, insurance, or credit 
                that the Bank has provided, and shall withdraw 
                from any participation in an extension of 
                credit, to an entity with respect to the export 
                of any good or service destined for the 
                People's Republic of China if the Board of 
                Directors determines that the entity is not 
                adhering to the code of conduct set forth in 
                paragraph (2).
          ``(2) Code of conduct.--An entity shall do all of the 
        following in all of its operations:
                  ``(A) Provide a safe and healthy workplace.
                  ``(B) Ensure fair employment, including by--
                          ``(i) avoiding child and forced 
                        labor, and discrimination based upon 
                        race, gender, national origin, or 
                        religious beliefs;
                          ``(ii) respecting freedom of 
                        association and the right to organize 
                        and bargain collectively;
                          ``(iii) paying not less than the 
                        minimum wage required by law or the 
                        prevailing industry wage, whichever is 
                        higher; and
                          ``(iv) providing all legally mandated 
                        benefits.
                 ``(C) Obey all applicable environmental laws.
                 ``(D) Comply with United States and local laws 
                promoting good business practices, including 
                laws prohibiting illicit payments and ensuring 
                fair competition.
                 ``(E) Maintain, through leadership at all 
                levels, a corporate culture--
                         ``(i) which respects free expression 
                        consistent with legitimate business 
                        concerns, and does not condone 
                        political coercion in the workplace;
                         ``(ii) which encourages good corporate 
                        citizenship and makes a positive 
                        contribution to the communities in 
                        which the entity operates; and
                         ``(iii) in which ethical conduct is 
                        recognized, valued, and exemplified by 
                        all employees.
                 ``(F) Require similar behavior by partners, 
                suppliers, and subcontractors under terms of 
                contracts.
                 ``(G) Implement and monitor compliance with 
                the subparagraphs (A) through (F) through a 
                program that is designed to prevent and detect 
                noncompliance by any employee or supplier of 
                the entity and that includes--
                         ``(i) standards for ethical conduct of 
                        employees of the entity and of 
                        suppliers which refer to the 
                        subparagraphs;
                         ``(ii) procedures for assignment of 
                        appropriately qualified personnel at 
                        the management level to monitor and 
                        enforce compliance;
                         ``(iii) procedures for reporting 
                        noncompliance by employees and 
                        suppliers;
                         ``(iv) procedures for selecting 
                        qualified individuals who are not 
                        employees of the entity or of suppliers 
                        to monitor compliance, and for 
                        assessing the effectiveness of such 
                        compliance monitoring;
                         ``(v) procedures for disciplinary 
                        action in response to noncompliance;
                         ``(vi) procedures designed to ensure 
                        that, in cases in which noncompliance 
                        is detected, reasonable steps are taken 
                        to correct the noncompliance and 
                        prevent similar noncompliance from 
                        occurring; and
                          ``(vii) communication of all 
                        standards and procedures with respect 
                        to the code of conduct to every 
                        employee and supplier--
                                  ``(I) by requiring all 
                                management level employees and 
                                suppliers to participate in a 
                                training program; or
                                  ``(II) by disseminating 
                                information orally and in 
                                writing, through posting of an 
                                explanation of the standards 
                                and procedures in prominent 
                                places sufficient to inform all 
                                employees and suppliers, in the 
                                local languages spoken by 
                                employees and managers.
          ``(3) Small business exception.--This subsection 
        shall not apply to an entity that is a small business 
        (within the meaning of the Small Business Act.''.
    (b) Annual Report.--Section 2(b)(1)(A) of such Act (12 
U.S.C. 635(b)(1)(A)) is amended by adding at the end the 
following: ``The Bank shall include in the annual report a 
description of the actions the Bank has taken to comply with 
subsection (f) during the period covered by the report.''.
    (c) Receipts of Assistance From the Export-Import Bank To 
Be Provided With Resources and Information To Further Adherence 
to Global Codes of Corporate Conduct.--The Export-Import Bank 
of the United States shall work with the Clearinghouse on 
Corporate Responsibility that is being developed by the 
Department of Commerce to ensure that recipients of assistance 
from the Export-Import Bank are made aware of, and have access 
to, resources and organizations that can assist the recipients 
in developing, implementing, and monitoring global codes of 
corporate conduct.
                              ----------                              


2. An Amendment To Be Offered by Representative Frank of Massachusetts, 
                or a Designee, Debatable for 10 Minutes

    At the end of the bill, add the following:

SEC. 10. COMMUNITY WORK REQUIREMENT FOR MEMBERS OF BOARDS OF DIRECTORS 
                    OF FIRMS RECEIVING ASSISTANCE FROM THE EXPORT-
                    IMPORT BANK.

    Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 
635) is amended by adding at the end the following:
    ``(f) Community Work Requirement for Members of Boards of 
Directors of Firms Receiving Assistance From the Bank.--
          ``(1) Prohibition.--The Bank shall not provide 
        assistance to a firm during a fiscal year unless each 
        member of the board of directors of the firm agrees to 
        perform not less than 8 hours of work (other than 
        political activities) during each month of the 
        immediately succeeding fiscal year in the community in 
        which the member resides.
          ``(2) Exceptions.--Paragraph (1) shall not apply to 
        an individual who is--
                  ``(A) at least 62 years of age;
                  ``(B) a person with disabilities;
                  ``(C) working full time, attending school or 
                vocational training, or otherwise complying 
                with work requirements applicable under public 
                assistance programs (as determined by the 
                agencies or organizations responsible for 
                administering such programs);
                  ``(D) otherwise physically impaired, to the 
                extent that the individual is unable to comply 
                with paragraph (1), as certified by a doctor; 
                or
                  ``(E) the primary caregiver to a disabled 
                individual or to a child who has not attained 6 
                years of age.
        ``(3) Person with disabilities defined.--
    As used in paragraph (2)(B), the term `person with 
disabilities' means a person who--
                  ``(A) has a disability as defined in section 
                223 of the Social Security Act;
                  ``(B) is determined, pursuant to regulations 
                issued by the Secretary of Housing and Urban 
                Development, to have a physical, mental, or 
                emotional impairment which--
                          ``(i) is expected to be of long-
                        continued and indefinite duration;
                          ``(ii) substantially impedes the 
                        ability of the person to live 
                        independently; and
                          ``(iii) is of such a nature that such 
                        ability could be improved by more 
                        suitable housing conditions; or
                  ``(C) has a developmental disability as 
                defined in section 102 of the Developmental 
                Disabilities Assistance and Bill of Rights Act.
        Such term shall not exclude persons who have the 
        disease of acquired immunodeficiency syndrome or any 
        conditions arising from the etiologic agent for 
        acquired immunodeficiency syndrome.''.
                              ----------                              


3. An Amendment to be Offered by Representative LaFalce of New York, or 
                  a Designee, Debatable for 10 minutes

    At the end of the bill, add the following:

SEC. 10. RENAMING OF BANK AS THE UNITED STATES EXPORT BANK.

    (a) Amendments to the Export-Import Bank Act of 1945.--
          (1) The first section of the Export-Import Bank Act 
        of 1945 (12 U.S.C. 635 note) is amended to read as 
        follows:

``SECTION 1. SHORT TITLE.

    ``This Act may be cited as the `United States Export Bank 
Act of 1945'.''.
          (2) The following provisions of such Act are amended 
        by striking ``Export-Import Bank of the United States'' 
        and inserting ``United States Export Bank'':
                  (A) Section 2(a)(1) (12 U.S.C. 635(a)(1)).
                  (B) Section 3(a) (12 U.S.C. 635a(a)).
                  (C) Section 3(b) (12 U.S.C. 635a(b)).
                  (D) Section 3(c)(1) (12 U.S.C. 635a(c)(1)).
                  (E) Section 4 (12 U.S.C. 635b).
                  (F) Section 5 (12 U.S.C. 635d).
                  (G) Section 6(a) (12 U.S.C. 635e(a)).
                  (H) Section 7 (12 U.S.C. 635f).
                  (I) Section 8(a) (12 U.S.C. 635g(a)).
                  (J) Section 9 (12 U.S.C. 635h).
    (3) The following provisions of such Act are amended by 
striking ``Export-Import Bank'' and place its appears and 
inserting ``United States Export Bank'':
                  (A) Section 2(b)(1)(A) (12 U.S.C. 
                635(b)(1)(A)).
                  (B) Section 3(c)(3) (12 U.S.C. 635a(c)(3)).
    (b) Deeming Rules.--Any reference in any law, map, 
regulation, document, paper, or other record of the United 
States to the Export-Import Bank of the United States is deemed 
to be a reference to the United States Export Bank, and any 
reference in any law, map, regulation, document, paper, or 
other record of the United States to the Export-Import Bank Act 
of 1945 is deemed to be a reference to the United States Export 
Bank Act of 1945.
                              ----------                              


    4. An Amendment To Be Offered by Representative Rohrabacher of 
          California, or a Designee, Debatable for 10 Minutes

    At the end of the bill, add the following:

SEC. 10. PROHIBITION AGAINST ASSISTANCE TO COMPANIES THAT ARE AT LEAST 
                    50 PERCENT OWNED BY A FOREIGN GOVERNMENT OR 
                    MILITARY.

    Section 2(b) of the Export-Import Bank Act of 1945 (12 
U.S.C. 635(b)) is amended by adding at the end the following:
    ``(12) Prohibition Against Assistance to Companies That Are 
At Least 50 Percent Owned by a Foreign Government or 
Military.--
          ``(A) Determination of Ownership.--On application for 
        assistance involving a transaction in connection with 
        the import or export of any good or service, the Bank 
        shall determine whether any company involved in the 
        transaction is at least 50 percent owned by the 
        government or military of a foreign country.
          ``(B) Prohibition.--The Bank shall not insure, 
        guarantee, extend credit, or participate in an 
        extension of credit involving any transaction in 
        connection with the import or export of any good or 
        service if any company involved in the transaction is 
        at least 50 percent owned by the government or military 
        of a foreign country.''.
                              ----------                              


    5. An Amendment To Be Offered by Representative Rohrabacher of 
          California, or a Designee, Debatable for 10 Minutes

    At the end of the bill, add the following:

SEC. 10. PROHIBITION AGAINST ASSISTANCE TO ENTITY OWNED BY A GOVERNMENT 
                    WHICH IS NOT CHOSEN THROUGH FREE AND FAIR 
                    DEMOCRATIC ELECTIONS OF WHICH LACKS AN INDEPENDENT 
                    JUDICIARY, OR FOR IMPORT FROM OR EXPORT TO A 
                    COUNTRY WITH SUCH A GOVERNMENT.

    Section 2(b) of the Export-Import Bank Act of 1945 (12 
U.S.C. 635(b)) is amended by adding at the end the following:
    ``(12) Prohibition Against Assistance to Entity Owned by a 
Government Which Is Not Chosen Through Free and Fair Democratic 
Elections or Which Lacks an Independent Judiciary, or for 
Import From or Export to a Country With Such a Government.--The 
Bank shall not insure, guarantee, extend credit, or participate 
in an extension of credit in connection with--
          ``(A) a transaction by an entity which is owned by a 
        government that--
                  ``(i) is not chosen through free and fair 
                democratic elections, as certified by the 
                President of the United States; or
                  ``(ii) lacks a independent judicial system; 
                or
          ``(B) the import of any good or service from, or 
        export of any good or service to, a country with a 
        government described in subparagraph (A).''.
                              ----------                              


6. An Amendment To Be Offered by Representative Solomon of New York or 
                  a Designee, Debatable for 10 Minutes

    At the end of the bill, add the following:

SEC. 10. PROHIBITION AGAINST ASSISTANCE TO RUSSIA IF RUSSIA TRANSFERS 
                    CERTAIN MISSILE SYSTEMS TO THE PEOPLE'S REPUBLIC OF 
                    CHINA.

    Section 2(b) of the Export-Import Bank Act of 1945 (12 
U.S.C. 635(b)) is amended by adding at the end the following:
    ``(12) Prohibition Against Assistance to Russia if Russia 
Transfers Certain Missile Systems to the People's Republic of 
China.--If the President of the United States is made aware 
that Russia has transferred or delivered to the People's 
Republic of China an SS-N-22 or SS-N-26 missile system, the 
President of the United States shall notify the Bank of the 
transfer or delivery. Upon receipt of the notification, the 
Bank shall not insure, guarantee, extend credit or participate 
in an extension of credit with respect to, or otherwise 
subsidize the export of any good or service to Russia.''.
                              ----------                              


7. An Amendment To Be Offered by Representative Vento of Minnesota, or 
                  a Designee, Debatable for 10 Minutes

    At the end of the bill, add the following:

SEC. 10. PROHIBITION AGAINST PROVISION OF ASSISTANCE FOR EXPORTS TO 
                    COMPANIES THAT EMPLOY CHILD LABOR.

    Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 
635) is amended by adding at the end the following:
    ``(f) Prohibition Against Assistance for Exports to 
Companies That Employ Child Labor.--The Bank shall not 
guarantee, insure, extend credit, or participate in the 
extension of credit with respect to the export of any good or 
service to an entity if the entity--
          ``(1) employs children in a manner that would violate 
        United States law regarding child labor if the entity 
        were located in the United States; or
          ``(2) has not made a binding commitment to not employ 
        children in such manner.''.

                                
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