[House Report 106-236]
[From the U.S. Government Publishing Office]






106th Congress                                                   Report
  1st Session           HOUSE OF REPRESENTATIVES                106-236

=======================================================================




 
    PROVIDING FOR THE CONSIDERATION OF H.R. 434, AFRICA GROWTH AND 
                            OPPORTUNITY ACT

                                _______
                                

   July 15, 1999.--Referred to the House Calendar and ordered to be 
                                printed

                                _______


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

                              R E P O R T

                       [To accompany H. Res. 250]

    The Committee on Rules, having had under consideration 
House Resolution 250, by a 7 to 1 vote, report the same to the 
House with the recommendation that the resolution be adopted.

                  summary of provisions of resolution

    The resolution provides for the consideration of H.R. 434, 
the ``Africa Growth and Opportunity Act,'' under a structured 
rule. The rule provides 45 minutes of general debate divided 
equally between the chairman and ranking minority member of the 
Committee on International Relations and 45 minutes of general 
debate divided equally between the chairman and ranking 
minority member of the Committee on Ways and Means. The rule 
waives all points of order against consideration of the bill.
    The rule provides that, in lieu of the amendments 
recommended by the Committees on International Relations and 
Ways and Means and now printed in the bill, it shall be in 
order to consider as an original bill for the purpose of 
amendment, an amendment in the nature of a substitute 
consisting of the text of H.R. 2489. The rule further waives 
all points of order against the amendment in the nature of a 
substitute.
    The rule provides for consideration of only the amendments 
printed in this report. The rule further provides that the 
amendments will be considered only in the order specified in 
this report, may be offered only by a Member designated in this 
report, shall be considered as read, shall be debatable for the 
time specified in this 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. The rule waives all points of order against the 
amendments printed in this report.
    Additionally, the rule allows the Chairman of the Committee 
of the Whole to postpone votes during consideration of the 
bill, and to reduce voting time to five minutes on a postponed 
question if the vote follows a fifteen minute vote. Finally the 
rule provides one motion to recommit with or without 
instructions.
    The waiver of all points of order against consideration of 
the bill includes a waiver of clause 3(c)(2) of rule XII 
(requiring the inclusion in the report of a statement on 
certain budget matters if the measure includes new budget, 
entitlement or credit authority or an increase or decrease in 
revenue) and clause 3(c)(3) of rule XIII (requiring the 
inclusion in the report of a CBO cost estimate). The waivers of 
clauses 3(c)(2) and (3) are necessary because the report of the 
Committee on International Relations (H-Rpt. 106-19, Part 1) 
did not include a cost estimate as required by section 308 of 
the Congressional Budget Act or a CBO cost estimate.
    The waiver of all points of order against the amendment in 
the nature of a substitute includes a waiver of clause 7 of 
rule XVI (prohibiting nongermane amendments). This waiver is 
necessary because section 19 (the limitation on the use of non-
accrual experience method of accounting) and section 20 (the 
inclusion of certain vaccines against streptococcus pneumoniae 
to the list of taxable vaccines) are revenue provisions and 
hence are not germane to the bill as introduced.
    The waiver of all points of order against the amendments 
printed in this report also includes a waiver of clause 7 of 
rule XVI. This is necessary because the provisions of section 
12 of the Jackson (IL) amendment relating to the Federal 
Advisory Committee Act are not germane to the amendment in the 
nature of a substitute, as they are not in the jurisdiction of 
the Committees on International Relations, Ways and Means, or 
Banking and Financial Services.

                            committee votes

    Pursuant to clause 3(b) of House Rule XIII the results of 
each record vote on an amendment or motion to report, together 
with the names of those voting for and against, are printed 
below:

Rules Committee record Vote No. 52

    Date: July 15, 1999.
    Measure: H.R. 434, Africa Growth and Opportunity Act.
    Motion by: Mr. Moakley.
    Summary of motion: To make in order the Bishop/Myrick 
amendment No. 16 which renames the textile section ``Special 
Access Program for Textile and Apparel Articles from Eligible 
Countries'' and eliminates the finding that there is ``no 
threat to U.S. jobs * * * workers or manufacturers'' as is 
reported in the bill; provides that the President consult with 
representatives of the domestic textile and apparel industry, 
and representatives of the beneficiary countries, as well as 
provide an opportunity for public comment before establishing a 
special access program for imports of textile and apparel 
articles; provides that the special access program established 
by the President should be modeled on the program in effect for 
Mexico which includes only those articles of apparel which have 
been assembled from fabric formed from the yarn-stage forward 
in the U.S. and cut in the U.S.; requires that any new program 
would need to be consistent with the international obligations 
of the U.S. under the GATT's Agreement on Textiles and 
Clothing, which provides for limits on imports if damage to a 
domestic industry results from increased imports; explicitly 
states an exemption for hand loomed, handmade and folklore 
articles from any quotas or duties or yarn-forward 
requirements; and adds a new section that increases the 
penalties for illegal transshippers of apparel goods, and 
ensures that any mitigation that U.S. Customs enters into with 
violators does not reduce the applicable fines and penalty 
amounts below 50 percent and allows for seizure and forfeiture 
of fraudulently marked containers of apparel, whereas current 
law only requires the impoundment and return of goods.
    Results: Defeated 2 to 6.
    Vote by Members: Goss--Nay; Pryce--Nay; Hastings--Nay; 
Myrick--Yea; Sessions--Nay; Reynolds--Nay; Moakley--Yea; 
Dreier--Nay.

Rules Committee record Vote No. 53

    Date: July 15, 1999.
    Measure: H.R. 434, Africa Growth and Opportunity Act.
    Motion by: Mr. Moakley.
    Summary of motion: To make in order the Waters amendment 
No. 18 which clarifies that the eligibility requirements 
described in Section 4 of this Act apply only to new programs, 
project, activities, assistance and benefits and does not apply 
to those programs, projects, activities, assistance and 
benefits already in place prior to the passage of the Act; the 
Waters amendment No. 19 which strikes three eligibility factors 
regarding reducing import and corporate taxes, controlling 
government consumption, removing restrictions on foreign 
investment and encouraging the privatization of government 
enterprises that are included in Section 4, which can be 
detrimental to sustainable development; the Waters amendment 
No. 20 which clarifies that a country seeking eligibility under 
this Act does not need to meet every one of the enumerated 
requirements in Section 4(a) to be found eligible; and the 
Waters amendment No. 21 which requires the President to take 
into consideration whether or not a country is cooperating in 
efforts to eliminate slavery when determining a country's 
eligibility.
    Results: Defeated 1 to 7.
    Vote by Members: Goss--Nay; Pryce--Nay; Hastings--Nay; 
Myrick--Nay; Sessions--Nay; Reynolds--Nay; Moakley--Yes; 
Dreier--Nay.

Rules Committee record Vote No. 54

    Date: July 15, 1999.
    Measure: H.R. 434, Africa Growth and Opportunity Act.
    Motion by: Mr. Moakley.
    Summary of motion: To make in order the Jackson amendment 
No. 24 which prohibits the use of federal government funds for 
the purpose of seeking the revocation or revision of the laws 
of any sub-Saharan African country designed to promote the 
availability and affordability of pharmaceuticals, provided 
that these laws comply with the World Trade Organization 
Agreement on Trade-Related Aspects of Intellectual Property 
Rights and amends the eligibility criteria to encourage 
counties to enforce intellectual property rights in a manner no 
more stringent than is required by the WTO Agreement; the 
Jackson amendment No. 25 which reserves quota free treatment 
for products at least 60 percent of the value added of which 
occurs in Africa and which are made at facilities where at 
least 90 percent of the employees are African citizens, 
provides an additional 50 percent tariff reduction for products 
made by corporations that are least 51 percent African owned 
and strengthens the human rights eligibility requirement and 
strikes other eligibility requirements; and the Jackson 
amendment No. 27 which cancels the debt owed to the U.S. by 
sub-Saharan African nations; requires U.S. representatives to 
international financial institutions to use their voice and 
vote in favor of the cancellation of the debt of African 
nations to those institutions and provides for the purchase by 
the federal government of the debt of African nations to 
private U.S. lenders at the market value as of January 1, 1999 
and the subsequent cancellation of the debt.
    Results: Defeated 1 to 7.
    Vote by Members: Goss--Nay; Pryce--Nay; Diaz-Balart--Nay; 
Hastings--Nay; Myrick--Nay; Sessions--Nay; Reynolds--Nay; 
Moakley--Yea; Dreier--Nay.

Rules Committee record Vote No. 55

    Date: July 15, 1999.
    Measure: H.R. 434, Africa Growth and Opportunity Act.
    Motion by: Mr. Goss.
    Summary of motion: To report the resolution.
    Results: Adopted 7 to 1.
    Vote by Members: Goss--Yay; Pryce--Yea; Hastings--Yea; 
Myrick--Yea; Sessions--Yea; Reynolds--Yea; Moakley--Nay; 
Dreier--Yea.

           summary of amendments made in order under the rule

    1. Jackson-Lee No. 12--Encourages and recognizes the need 
for U.S. and African small business opportunities and 
investment in sub-Saharan Africa. (10 minutes)
    2. Jackson (IL) No. 29--Requires that Overseas Private 
Investment Corporation Infrastructure Funds provided in the 
bill be targeted for the following purposes; basic health 
services, potable water, sanitation, schools, rural 
electrification and accessible transportation; requires that 70 
percent of trade financing and investment insurance provided by 
OPIC be allocated to small, women and minority-owned businesses 
with at least 60 percent African ownership and 40 percent U.S. 
ownership and that 50 percent of funds for energy projects be 
used for renewable and/or alternative energy development; 
creates Administration Advisory Boards to oversee these funds 
and also Ex-Im Bank financing targeted to sub-Saharan Africa. 
(10 minutes)
    3. Jackson-Lee No. 14--Expresses the sense of the Congress 
that U.S. business should be encouraged to assist sub-Saharan 
Africa with the HIV/AIDS problem and consider the establishment 
of a HIV/AIDS Response Fund to coordinate assistance efforts. 
(10 minutes)
    4. Olver/Foley/Pelosi No. 9--Expresses the sense of 
Congress that addressing the HIV/AIDS crisis should be a 
central component of America's foreign policy with respect to 
sub-Saharan Africa; expresses the sense of Congress that 
significant progress needs to be made in preventing and 
treating HIV/AIDS before we can expect to sustain a mutually 
beneficial trade relationship with sub-Saharan African 
countries; expresses the sense of Congress that the HIV/AIDS 
crisis in Africa is a global threat that merits further 
attention in detailed legislation. (10 minutes)

            text of amendments made in order under the rule

 1. An Amendment To Be Offered by Representative Jackson-Lee of Texas, 
                or a Designee, Debatable for 10 minutes

  Page 3, line 5, strike ``and''.
  Page 3, line 8, strike the period and insert ``; and''.
  Page 3, after line 8, add the following:
          (10) encouraging the establishment and development of 
        small businesses in sub-Saharan Africa and encouraging 
        trade between United States small businesses and these 
        newly-established small businesses in sub-Saharan 
        Africa.
                              ----------                              


2. An Amendment To Be Offered by Representative Jackson of Illinois, or 
                  a Designee, Debatable for 10 minutes

  Page 24, strike line 13 and all that follows through line 18 
on page 25 and insert the following:

SEC. 11. SUB-SAHARAN AFRICA EQUITY AND INFRASTRUCTURE FUNDS.

  (a) Initiation of Funds.--The Overseas Private Investment 
Corporation shall, not later than 12 months after the date of 
the enactment of this Act, exercise the authorities it has to 
initiate 1 or more equity funds in support of projects in the 
countries in sub-Saharan Africa, in addition to any existing 
equity fund for sub-Saharan Africa established by the 
Corporation before the date of the enactment of this Act.
  (b) Structure and Types of Funds.--
          (1) Structure.--Each fund initiated under subsection 
        (a) shall be structured as a partnership managed by 
        professional private sector fund managers and monitored 
        on a continuing basis by the Corporation.
          (2) Capitalization.--Each fund shall be capitalized 
        with a combination of private equity capital, which is 
        not guaranteed by the Corporation, and debt for which 
        the Corporation provides guaranties.
          (3) Types of funds.--One or more of the funds, with 
        combined assets of up to $500,000,000, shall be used in 
        support of infrastructure projects in countries of sub-
        Saharan Africa, including basic health services 
        (including AIDS prevention and treatment), including 
        hospitals, potable water, sanitation, schools, 
        electrification of rural areas, and publicly-accessible 
        transportation in sub-Saharan African countries.
  (c) Additional Requirements.--The Corporation shall ensure 
that--
          (1) not less than 70 percent of trade financing and 
        investment insurance provided through the equity funds 
        established under subsection (a), and through any 
        existing equity fund for sub-Saharan Africa established 
        by the Corporation before the date of the enactment of 
        this Act, are allocated to small, women- and minority-
        owned businesses--
                  (A) of which not less than 60 percent of the 
                ownership is comprised of citizens of sub-
                Saharan African countries and 40 percent of the 
                ownership is comprised of citizens of the 
                United States; and
                  (B) that have assets of not more than 
                $1,000,000; and
          (2) not less than 50 percent of the funds allocated 
        to energy projects are used for renewal or alternative 
        energy projects.
  Page 25, strike line 19 and all that follows through line 6 
on page 28 and insert the following:

SEC. 12. OVERSEAS PRIVATE INVESTMENT CORPORATION AND EXPORT-IMPORT BANK 
                    INITIATIVES.

  (a) Overseas Private Investment Corporation.--Section 233 of 
the Foreign Assistance Act of 1961 is amended by adding at the 
end the following:
  ``(e) Advisory Committee.--
          ``(1) Establishment.--The Board shall establish and 
        work with an advisory committee to assist the Board in 
        developing and implementing policies, programs, and 
        financial instruments with respect to sub-Saharan 
        Africa, including with respect to equity and 
        infrastructure funds established under section 11 of 
        the African Growth and Opportunity Act.
          ``(2) Membership.--
                  ``(A) In general.--The advisory committee 
                established under paragraph (1) shall consist 
                of 15 members, of which 7 members shall be 
                employees of the United States Government and 8 
                members shall be representatives of the private 
                sector.
                  ``(B) Appointment.--The members of the 
                advisory committee shall be appointed as 
                follows:
                          ``(i) The Speaker and Minority Leader 
                        of the House of Representatives and the 
                        Majority and Minority Leaders of the 
                        Senate shall each appoint 2 members who 
                        are representatives of the private 
                        sector and 1 member who is an employee 
                        of the United States Government.
                          ``(ii) The Speaker and Minority 
                        Leader of the House of Representatives 
                        and the Majority and Minority Leaders 
                        of the Senate shall jointly appoint the 
                        remaining 3 members who are employees 
                        of the United States Government.
                  ``(C) Additional requirements.--Of the 8 
                members of advisory committee who are 
                representatives of the private sector--
                          ``(i) at least 4 members shall be 
                        representatives of not-for-profit 
                        public interest organizations;
                          ``(ii) at least 1 member shall be a 
                        representative of an organization with 
                        expertise in development issues;
                          ``(iii) at least 1 member shall be a 
                        representative of an organization with 
                        expertise in human rights issues;
                          ``(iv) at least 1 member shall be a 
                        representative of an organization with 
                        expertise in environmental issues; and
                          ``(v) at least 1 member shall be a 
                        representative of an organization with 
                        expertise in international labor 
                        rights.
                  ``(D) Terms.--Each member of the advisory 
                committee shall be appointed for a term of 2 
                years.
          ``(3) Meetings.--
                  ``(A) Open to public.--Meetings of the 
                advisory committee shall be open to the public.
                  ``(B) Advance notice.--The advisory committee 
                shall provide advance notice in the Federal 
                Register of any meeting of the committee, shall 
                provide notice of all proposals or projects to 
                be considered by the committee at the meeting, 
                and shall solicit written comments from the 
                public relating to such proposals or projects.
                  ``(C) Decisions.--Any decision of the 
                advisory committee relating to a proposal or 
                project shall be published in the Federal 
                Register with an explanation of the extent to 
                which the committee considered public comments 
                received with respect to the proposal or 
                project, if any.
          ``(4) Environmental impact assessments.--The 
        Corporation shall carry out environmental impact 
        assessments with respect to any proposal or project not 
        later than 120 days before the advisory committee, or 
        the Board, considers such proposal or project, 
        whichever occurs earlier.''.
  (b) Export-Import Bank Initiative.--Section 2(b)(9) of the 
Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(9)) is amended 
to read as follows:
  ``(9) For purposes of the funds allocated by the Bank for 
projects in countries in sub-Saharan Africa (as defined in 
section 17 of the African Growth and Opportunity Act):
                  ``(A) The Bank shall establish an advisory 
                committee to work with and assist the Board in 
                developing and implementing policies, programs, 
                and financial instruments with respect to such 
                countries.
                  ``(B) The members of the advisory committee 
                shall be appointed as follows:
                          ``(i) The Speaker and Minority Leader 
                        of the House of Representatives and the 
                        Majority and Minority Leaders of the 
                        Senate shall each appoint 2 members who 
                        are representatives of the private 
                        sector and 1 member who is an officer 
                        or employee of the Federal Government.
                          ``(ii) The Speaker and Minority 
                        Leader of the House of Representatives 
                        and the Majority and Minority Leaders 
                        of the Senate shall jointly appoint the 
                        remaining 3 members who are officers or 
                        employees of the Federal Government.
                  ``(C)(i) At least half of the members of the 
                advisory committee who are representatives of 
                the private sector shall be representatives of 
                not-for-profit public interest organizations.
                          ``(ii) At least 1 of such private 
                        sector representatives shall be a 
                        representative of an organization with 
                        expertise in development issues.
                          ``(iii) At least 1 of such private 
                        sector representatives shall be a 
                        representative of an organization with 
                        expertise in human rights.
                          ``(iv) At least 1 of such private 
                        sector representatives shall be a 
                        representative of an organization with 
                        expertise in environmental issues.
                          ``(v) At least 1 of such private 
                        sector representatives shall have 
                        expertise in international labor 
                        rights.
                  ``(D) Each member of the advisory committee 
                shall serve for a term of 2 years.
                  ``(E)(i) Members of the advisory committee 
                who are representatives of the private sector 
                shall not receive compensation by reason of 
                their service on the advisory committee.
                  ``(ii) Members of the advisory committee who 
                are officers or employees of the Federal 
                Government may not receive additional pay, 
                allowances, or benefits by reason of their 
                service on the advisory committee.
                  ``(F) Meetings of the advisory committee 
                shall be open to the public.
                  ``(G) The advisory committee shall give 
                timely advance notice of each meeting of the 
                advisory committee, including a description of 
                any matters to be considered at the meeting, 
                shall establish a public docket, shall solicit 
                written comments in advance on each proposal, 
                and shall make each decision in writing with an 
                explanation of disposition of the public 
                comments.
                  ``(H) The Bank shall complete and release to 
                the public an environmental impact assessment 
                with respect to a proposal or project with 
                potential environmental effects, not later than 
                120 days before the advisory committee, or the 
                Board, considers the proposal or project, 
                whichever occurs earlier.
                  ``(I) Section 14(a)(2) of the Federal 
                Advisory Committee Act shall not apply to the 
                advisory committee.''.

 3. An Amendment To Be Offered by Representative Jackson-Lee of Texas, 
                or a Designee, Debatable for 10 Minutes

  Page 38, after line 7, insert the following (and redesignate 
subsequent sections accordingly):

SEC. 18. ASSISTANCE FROM UNITED STATES PRIVATE SECTOR TO PREVENT AND 
                    REDUCE HIV/AIDS IN SUB-SAHARAN AFRICA.

  It is the sense of the Congress that United States businesses 
should be encouraged to provide assistance to sub-Saharan 
African countries to prevent and reduce the incidence of HIV/
AIDS in sub-Saharan Africa. In providing such assistance, 
United States businesses should be encouraged to consider the 
establishment of an HIV/AIDS Response Fund in order to provide 
for coordination among such businesses in the collection and 
distribution of the assistance to sub-Saharan African 
countries.
                              ----------                              


4. An Amendment To Be Offered by Representative Olver of Massachusetts, 
  or Representative Foley of Florida, or a Designee, Debatable for 10 
                                Minutes

  Page 38, after line 7, insert the following (and redesignate 
the subsequent sections accordingly):

SEC. 18. SENSE OF THE CONGRESS RELATING TO HIV/AIDS CRISIS IN SUB-
                    SAHARAN AFRICA.

  (a) Findings.--The Congress finds the following:
          (1) Sustained economic development in sub-Saharan 
        Africa depends in large measure upon successful trade 
        with and foreign assistance to the countries of sub-
        Saharan Africa.
          (2) The HIV/AIDS crisis has reached epidemic 
        proportions in sub-Saharan Africa, where more than 
        21,000,000 men, women, and children are infected with 
        HIV.
          (3) 83 percent of the estimated 11,700,000 deaths 
        from HIV/AIDS worldwide have been in sub-Saharan 
        Africa.
          (4) The HIV/AIDS crisis in sub-Saharan Africa is 
        weakening the structure of families and societies.
          (5)(A) The HIV/AIDS crisis threatens the future of 
        the workforce in sub-Saharan Africa.
          (B) Studies show that HIV/AIDS in sub-Saharan Africa 
        most severely affects individuals between the ages of 
        15 and 49--the age group that provides the most support 
        for the economies of sub-Saharan African countries.
          (6) Clear evidence demonstrates that HIV/AIDS is 
        destructive to the economies of sub-Saharan African 
        countries.
          (7) Sustained economic development is critical to 
        creating the public and private sector resources in 
        sub-Saharan Africa necessary to fight the HIV/AIDS 
        epidemic.
  (b) Sense of the Congress.--It is the sense of the Congress 
that--
          (1) addressing the HIV/AIDS crisis in sub-Saharan 
        Africa should be a central component of United States 
        foreign policy with respect to sub-Saharan Africa;
          (2) significant progress needs to be made in 
        preventing and treating HIV/AIDS in sub-Saharan Africa 
        in order to sustain a mutually beneficial trade 
        relationship between the United States and sub-Saharan 
        African countries; and
          (3) the HIV/AIDS crisis in sub-Saharan Africa is a 
        global threat that merits further attention through 
        greatly expanded public, private, and joint public-
        private efforts, and through appropriate United States 
        legislation.

                                


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