[House Report 119-25]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 119-25
======================================================================
ALIGNING SEC REGULATIONS FOR THE WORLD BANK'S
INTERNATIONAL DEVELOPMENT ASSOCIATION ACT
_______
March 21, 2025.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Hill of Arkansas, from the Committee on Financial Services,
submitted the following
R E P O R T
[To accompany H.R. 1764]
The Committee on Financial Services, to whom was referred
the bill (H.R. 1764) to accord securities issued by the
International Development Association the same exemption from
the securities laws that applies to the securities of other
multilateral development banks in which the United States is a
member, having considered the same, reports favorably thereon
with an amendment and recommends that the bill as amended do
pass.
CONTENTS
Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Committee Consideration.......................................... 3
Related Hearings................................................. 3
Committee Votes.................................................. 4
Committee Oversight Findings..................................... 6
Performance Goals and Objectives................................. 6
Committee Cost Estimate.......................................... 6
New Budget Authority and CBO Cost Estimate....................... 6
Unfunded Mandates Statement...................................... 6
Earmark Statement................................................ 6
Federal Advisory Committee Act Statement......................... 7
Applicability to the Legislative Branch.......................... 7
Duplication of Federal Programs.................................. 7
Section-by-Section Analysis of the Legislation................... 7
Changes in Existing Law Made by the Bill, as Reported............ 7
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Aligning SEC Regulations for the World
Bank's International Development Association Act''.
SEC. 2. EXEMPTION OF SECURITIES OF THE INTERNATIONAL DEVELOPMENT
ASSOCIATION FROM THE SECURITIES LAWS.
(a) In General.--The International Development Association Act (22
U.S.C. 284 et seq.) is amended by adding at the end the following:
``SEC. 33. EXEMPTION OF SECURITIES OF THE INTERNATIONAL DEVELOPMENT
ASSOCIATION FROM THE SECURITIES LAWS.
``(a) Exemption From Securities Laws; Reports to Securities and
Exchange Commission.--Any securities issued by the Association
(including any guaranty by the Association, whether or not limited in
scope) and any securities guaranteed by the Association as to both
principal and interest shall be deemed to be exempted securities within
the meaning of section 3(a)(2) of the Securities Act of 1933 (15 U.S.C.
77c(a)(2)) and section 3(a)(12) of the Securities Exchange Act of 1934
(15 U.S.C. 78c(a)(12)). The Association shall file with the Securities
and Exchange Commission such annual and other reports with regard to
such securities as the Commission shall determine to be appropriate in
view of the special character of the Association and its operations and
necessary in the public interest or for the protection of investors.
``(b) Authority of Securities and Exchange Commission to Suspend
Exemption; Reports to Congress.--The Securities and Exchange
Commission, acting in consultation with the National Advisory Council
on International Monetary and Financial Problems, is authorized to
suspend the provisions of subsection (a) of this section at any time as
to any or all securities issued or guaranteed by the Association during
the period of such suspension. The Commission shall include in its
annual reports to the Congress such information as it shall deem
advisable with regard to the operations and effect of this section.''.
(b) Effective Date.--
(1) In general.--The amendment made by subsection (a) shall
take effect 30 days after the date of enactment of this Act.
(2) Exception.--Notwithstanding paragraph (1), the amendment
made by subsection (a) shall not take effect if, before the
effective date described under paragraph (1), the Secretary of
the Treasury reports to the Committee on Financial Services of
the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate that the International
Development Association is providing financial assistance to
any country the government of which the Secretary of State has
determined, for purposes of section 6(j) of the Export
Administration Act of 1979, section 620A of the Foreign
Assistance Act of 1961, or section 40 of the Arms Export
Control Act, to be a government that has repeatedly provided
support for acts of international terrorism.
Purpose and Summary
Introduced on March 3, 2025, by Representative Maxine
Waters, H.R. 1764, the Aligning SEC Regulations for the World
Bank's International Development Association Act, would
classify securities issued by the World Bank's International
Development Association (IDA) as exempted securities, subject
to reporting requirements deemed appropriate by the Securities
and Exchange Commission.
Background and Need for Legislation
H.R. 1764 brings about parity among other World Bank groups
and various other multilateral development banks to classify
securities issued by the World Bank's IDA as exempted
securities. Prior to 2018, IDA did not raise funds in the
securities market and therefore did not require this exemption.
The exemption remains consistent with previous treatment of
multilateral development bank securities.
Committee Consideration
118TH CONGRESS
On February 7, 2023, the Committee Financial Services held
a hearing titled ``Combatting the Economic Threat from China,''
which examined tools to combat the economic threat from China.
Witnesses were Mr. Rich Ashooh, former Assistant Secretary of
Commerce for Export Administration; Mr. Tom Feddo, former
Assistant Secretary for Investment Security at the Department
of Treasury and former Assistant Director for Enforcement at
the Office of Foreign Assets Control; Mr. Eric Lorber, former
Senior Advisor to the Undersecretary for Treasury's Terrorism
and Financial Intelligence Division; Mr. Clete Willems, former
Deputy National Security Advisor and Deputy National Economic
Advisor; and Mr. Peter Harrell, former Senior Director for
International Economic Policy with the Biden Administration.
On February 24, 2023, Representative Maxine Waters (D-CA)
introduced H.R. 1161, the Aligning SEC Regulations for the
World Bank's International Development Associations Act. The
bill was referred solely to the Committee on Financial
Services.
The Committee on Financial Services met in open session on
February 28, 2023, and ordered H.R. 1161 to be reported
favorably to the House as amended by a recorded vote of 38 yeas
and 0 nays, a quorum being present (Record Vote No. FC-23).
Before the question was called to order the bill favorably
reported, the Committee adopted an amendment in the nature of a
substitute offered by Ms. Waters by voice vote.
119TH CONGRESS
On March 5, 2025, Representative Maxine Waters (D-CA)
introduced H.R. 1764, the Aligning SEC Regulations for the
World Bank's International Development Associations Act. The
bill was referred solely to the Committee on Financial
Services.
Related Hearings
Pursuant to clause 3(c)(6) of rule XIII of the Rules of the
House of Representatives, the following hearing was used to
develop H.R. 1764:
The Full Committee held a hearing on February 25, 2025,
titled ``Examining Policies to Counter China.'' A discussion
draft of the bill was considered in this hearing. Witness who
testified were: John Miller, Senior Vice President of Policy,
Trust, Data, and Technology, and General Counsel, Information
Technology Industry Council; Nicholas McMurray, Managing
Director of International and Nuclear Policy, ClearPath; John
Cassara, retired United States Treasury Department Special
Agent; Martin Muhleisen, Nonresident Senior Fellow at the GAO
Economic Center at the Atlantic Council; and Dr. Rush Doshi,
C.V. Starr Senior Fellow for Asian Studies, and Director of the
China Strategy Initiative at the Council on Foreign Relations,
and an assistant professor at Georgetown University.
The Committee on Financial Services met in open session on
March 5, 2025 to consider, among others, H.R. 1764.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee Report to include for
each record vote on a motion to report the measure or matter
and on any amendments offered to the measure or matter the
total number of votes for and against and the names of the
Members voting for and against.
On March 5, 2025, the Committee ordered H.R. 1764, as
amended, to be reported favorably to the House by a recorded
vote of 49 yeas to 0 nays, a quorum being present. (Record Vote
No. FC-026).
Before the question to report was called, the Committee
adopted an amendment in the nature of a substitute offered by
Ms. Waters making technical changes by voice vote.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Committee Oversight Findings
Pursuant to clause 3(c) of rule XIII of the Rules of the
House of Representatives, the findings and recommendations of
the Committee, based on oversight activities under clause
2(b)(1) of rule X of the Rules of the House of Representatives,
are incorporated in the descriptive portions of this report.
Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the goal of H.R. 1764 is to classify
securities issued by the World Bank's IDA as exempted
securities and to require the Secretary of the Treasury to
certify that the IDA is not providing financial assistance to
any country that has repeatedly provided support for acts of
international terrorism.
Committee Cost Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 1764.
The Committee has requested but not received a cost
estimate from the Director of the Congressional Budget Office.
However, pursuant to clause 3(d)(1) of rule XIII of the House
of Representatives, the Committee will adopt as its own the
cost estimate by the Director of the Congressional Budget
Office once it has been prepared.
New Budget Authority and CBO Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause 3(c)(3) of rule XIII of the Rules of
the House of Representatives and section 402 of the
Congressional Budget Act of 1974, a cost estimate was not made
available to the Committee in time for the filing of this
report. The Chairman of the Committee shall cause such estimate
to be printed in the Congressional Record upon its receipt by
the Committee.
Unfunded Mandates Statement
The Committee has requested but not received from the
Director of the Congressional Budget Office an estimate of the
Federal mandates pursuant to section 423 of the Unfunded
Mandates Reform Act. The Committee will adopt the estimate once
it has been prepared by the Director.
Earmark Statement
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the resolution and states that the provisions
of the bill do not contain any congressional earmarks, limited
tax benefits, or limited tariff benefits within the meaning of
the rule.
Federal Advisory Committee Act Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to the Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee states that no
provision of the bill establishes or reauthorizes a program of
the Federal Government known to be duplicative of another
Federal program, including any program that was included in a
report to Congress pursuant to section 21 of the Public Law
111-139 or the most recent Catalog of Federal Domestic
Assistance.
Section-by-Section Analysis of the Legislation
The following is a section-by-section analysis of H.R.
1764, the Aligning SEC Regulations for the World Bank's
International Development Associations Act.
Section 1. Short title
Section 1 provides that the short title is ``Aligning SEC
Regulations for the World Bank's International Development
Association Act.''
Section 2. Exemption of Securities of the International Development
Association from the Securities Laws
Amends the International Development
Association Act (22 U.S.C. 284-284cc) to align
securities guaranteed by the Association with the
exemptions provided under the Securities Act of 1933
(15 U.S.C. 77c(a)(2)) and the Securities Exchange Act
of 1934 (15 U.S.C. 78c(a)(12)).
Provides the Securities and Exchange
Commission authority to suspend the exemptions.
Provides an effective date of 30 days after
enactment.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italics and existing law in which no change is
proposed is shown in roman):
INTERNATIONAL DEVELOPMENT ASSOCIATION ACT
* * * * * * *
SEC. 33. EXEMPTION OF SECURITIES OF THE INTERNATIONAL DEVELOPMENT
ASSOCIATION FROM THE SECURITIES LAWS.
(a) Exemption From Securities Laws; Reports to Securities and
Exchange Commission.--Any securities issued by the Association
(including any guaranty by the Association, whether or not
limited in scope) and any securities guaranteed by the
Association as to both principal and interest shall be deemed
to be exempted securities within the meaning of section 3(a)(2)
of the Securities Act of 1933 (15 U.S.C. 77c(a)(2)) and section
3(a)(12) of the Securities Exchange Act of 1934 (15 U.S.C.
78c(a)(12)). The Association shall file with the Securities and
Exchange Commission such annual and other reports with regard
to such securities as the Commission shall determine to be
appropriate in view of the special character of the Association
and its operations and necessary in the public interest or for
the protection of investors.
(b) Authority of Securities and Exchange Commission to
Suspend Exemption; Reports to Congress.--The Securities and
Exchange Commission, acting in consultation with the National
Advisory Council on International Monetary and Financial
Problems, is authorized to suspend the provisions of subsection
(a) of this section at any time as to any or all securities
issued or guaranteed by the Association during the period of
such suspension. The Commission shall include in its annual
reports to the Congress such information as it shall deem
advisable with regard to the operations and effect of this
section.
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