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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3847 Introduced in House (IH)]

<DOC>

114th CONGRESS
  1st Session
                                H. R. 3847

 To provide for reforms of the Export-Import Bank of the United States.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            October 28, 2015

  Mr. Issa (for himself, Mr. Peterson, and Mr. Hunter) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL

 
 To provide for reforms of the Export-Import Bank of the United States.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Export-Import Bank Reform Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--IMPROVING TRANSPARENCY OF THE EXPORT-IMPORT BANK OF THE UNITED 
                                 STATES

Sec. 101. Review of Bank product pricing and credit standards to avoid 
                            crowding out of private export finance.
Sec. 102. Prohibited countries.
Sec. 103. Employee certification and financial disclosure.
Sec. 104. Parallel GAAP reporting.
Sec. 105. Making the Bank the lender of last resort for loans, 
                            attempting private financing first.
Sec. 106. Audit committee.
Sec. 107. Report on privatizing the Bank.
Sec. 108. Independent audit of Bank portfolio.
TITLE II--IMPROVING THE ACCOUNTABILITY OF THE EXPORT-IMPORT BANK OF THE 
                             UNITED STATES

Sec. 201. Earnings retention.
Sec. 202. Office of the President and term limits.
Sec. 203. Repayment as priority.
Sec. 204. Limitations on outstanding loans, guarantees, and insurance.
Sec. 205. Credit risk.
                         TITLE III--JOB GROWTH

Sec. 301. Medium-sized enterprises.
Sec. 302. Inflation adjustment.

TITLE I--IMPROVING TRANSPARENCY OF THE EXPORT-IMPORT BANK OF THE UNITED 
                                 STATES

SEC. 101. REVIEW OF BANK PRODUCT PRICING AND CREDIT STANDARDS TO AVOID 
              CROWDING OUT OF PRIVATE EXPORT FINANCE.

    Section 8 of the Export-Import Bank Act of 1945 (12 U.S.C. 635g) is 
amended by adding at the end the following:
    ``(l) Reports on Private Export Financing and Bank Pricing and 
Credit Standards.--
            ``(1) Private export financing.--The Board of Governors of 
        the Federal Reserve System shall issue a semiannual report to 
        the Congress on the terms and conditions (including interest 
        rates, maturities, and credit standards) that apply in the 
        provision of export finance by private financial institutions.
            ``(2) Bank pricing and credit standards.--The Bank shall 
        issue an annual report to the Congress on the steps taken by 
        the Bank to adjust the pricing of products offered, and the 
        credit standards used, by the Bank to avoid crowding out 
        private export finance.''.

SEC. 102. PROHIBITED COUNTRIES.

    Section 8 of the Export-Import Bank Act of 1945 (12 U.S.C. 635g), 
as amended by section 101 of this Act, is amended by adding at the end 
the following:
    ``(m) Recommendations Regarding Prohibited Countries.--The Board of 
Directors of the Bank, in consultation with Congress, the President, 
and the Secretary of State, shall develop recommendations annually 
regarding the countries with whom and in which the Bank should not be 
doing business, and the Bank shall include the recommendations in its 
annual report to the Congress under subsection (a).''.

SEC. 103. EMPLOYEE CERTIFICATION AND FINANCIAL DISCLOSURE.

    Section 3(e) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635a(e)) is amended by adding at the end the following:
            ``(3) Ethics.--
                    ``(A) Code of ethics.--
                            ``(i) In general.--The Chief Ethics Officer 
                        shall draft a Code of Ethics that sets out 
                        strict and definite standards of official 
                        conduct for all Bank directors, officers, and 
                        employees, which Code shall include a policy 
                        that prohibits conflicts of interest, as 
                        described in paragraph (1) of this subsection, 
                        and other policies, prohibitions, and 
                        restrictions that the Chief Ethics Officer 
                        deems appropriate.
                            ``(ii) Considerations.--In drafting the 
                        Code of Ethics, the Chief Ethics Officer shall 
                        consider the Principles of Ethical Conduct for 
                        Government Officers and Employee set forth in 
                        Executive Order 12731 (Oct. 17, 1990).
                            ``(iii) Consistency with ethics in 
                        government act of 1978.--The Chief Ethics 
                        Officer shall ensure that the Code of Ethics is 
                        consistent with the Ethics in Government Act of 
                        1978 and the regulations promulgated under such 
                        Act.
                            ``(iv) Effectiveness; amendment.--The Code 
                        of Ethics (and an amendment to the Code) shall 
                        take effect on approval by the Board. The Code 
                        of Ethics may be amended only on the 
                        recommendation of the Chief Ethics Officer.
                            ``(v) Annual employee certifications.--The 
                        Board, in consultation with the Chief Ethics 
                        Officer, shall implement a policy that requires 
                        all Bank directors, officers, and employees to 
                        certify annually that they have read, 
                        understand, and complied with and will continue 
                        to comply with the Code of Ethics. The annual 
                        certifications shall contain a statement that 
                        notifies the signatory that section 1001 of 
                        title 18, United States Code, applies to the 
                        certification.
                    ``(B) Financial disclosure.--
                            ``(i) In general.--Within 180 days after 
                        the date of the enactment of this paragraph, 
                        the Board, in consultation with the Chief 
                        Ethics Officer, shall prepare a financial 
                        disclosure form for Covered Individuals, which 
                        form shall--
                                    ``(I) require information about 
                                assets, income, debts, and any other 
                                financial information that the Board 
                                deems appropriate for ensuring that a 
                                Covered Individual is in compliance 
                                with the Code of Ethics established 
                                under subparagraph (A); and
                                    ``(II) be no less extensive than 
                                financial reports required to be filed 
                                under title I of the Ethics in 
                                Government Act of 1978 and the 
                                regulations promulgated under such Act.
                            ``(ii) Financial reporting policy.--The 
                        Board, in consultation with the Chief Ethics 
                        Officer, shall implement a policy that--
                                    ``(I) requires each Covered 
                                Individual and the spouse of the 
                                Covered Individual to annually complete 
                                the financial disclosure form and 
                                submit the completed form to the 
                                General Counsel or his or her designee 
                                for review; and
                                    ``(II) allows any Covered 
                                Individual who is required to file 
                                financial reports under title I of the 
                                Ethics in Government Act of 1978 or any 
                                other Federal law to file the financial 
                                reports under such title or other law 
                                in lieu of the financial disclosure 
                                form described in this subparagraph, 
                                but the Board may require those who do 
                                so to supplement the financial report 
                                with all information required to be 
                                disclosed under this subparagraph.
                            ``(iii) Covered individual defined.--In 
                        this subparagraph, the term `Covered 
                        Individual' means any Bank director, officer, 
                        employee, or contractor with the ability to 
                        affect any Bank decision relating to financing, 
                        funding, insuring, or otherwise providing 
                        backing to any company or project.
                            ``(iv) Availability of completed financial 
                        disclosure forms.--
                                    ``(I) In general.--The Bank shall 
                                make completed financial disclosure 
                                forms available to the Office of 
                                Inspector General for the Bank.
                                    ``(II) Prohibitions.--A completed 
                                financial disclosure form shall not be 
                                made available--
                                            ``(aa) to another Bank 
                                        director, officer, employee, 
                                        attorney, or agent, except as 
                                        necessary to ensure compliance 
                                        of a Covered Individual with 
                                        this subparagraph, the Code of 
                                        Ethics, or any applicable law; 
                                        or
                                            ``(bb) to the public.
                    ``(C) Rule of interpretation.--Nothing in this 
                paragraph shall supersede, modify, change, or otherwise 
                affect any requirement, procedure, or restriction 
                applicable to a Bank employee, officer, or director 
                under the Ethics in Government Act of 1978 that applies 
                in addition to the requirements, procedures, and 
                restrictions applicable to a Bank employee, officer, or 
                director under this paragraph.''.

SEC. 104. PARALLEL GAAP REPORTING.

    Section 8 of the Export-Import Bank Act of 1945 (12 U.S.C. 635g), 
as amended by sections 101 and 102 of this Act, is amended by adding at 
the end the following:
    ``(n) Parallel GAAP Reporting.--With any report issued by the Bank 
to the Congress or any committee of the Congress that contains 
accounting information that is not prepared using generally accepted 
accounting principles, the Bank shall issue a 2nd report providing the 
same accounting information prepared using generally accepted 
accounting principles.''.

SEC. 105. MAKING THE BANK THE LENDER OF LAST RESORT FOR LOANS, 
              ATTEMPTING PRIVATE FINANCING FIRST.

    Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 635) is 
amended by adding at the end the following:
    ``(l) Applicants for Bank Assistance Required To Demonstrate 
Inability To Obtain Credit Elsewhere.--The Bank shall not guarantee, 
insure, or extend credit, or participate in an extension of credit in 
connection with a transaction, to a privately owned foreign applicant, 
other than a financial institution, unless the applicant demonstrates 
to the Bank that--
            ``(1) the applicant has sought, and has been unable to 
        obtain, competitive financing for the transaction without any 
        support from the Overseas Private Investment Corporation or the 
        Small Business Administration; or
            ``(2) financing from a foreign export credit agency is 
        available to the applicant to support comparable foreign goods 
        and services competing with the United States exports that 
        would be financed by the Bank through the application.''.

SEC. 106. AUDIT COMMITTEE.

    Section 3(c) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635a(c)) is amended by redesignating paragraph (10) as paragraph (11) 
and inserting after paragraph (9) the following:
    ``(10) Audit Committee.--
            ``(A) Membership.--
                    ``(i) In general.--In addition to such other duties 
                as they may be appointed to perform under subparagraph 
                (5), the directors who are neither Chairman nor Vice 
                Chairman of the Board shall constitute the Audit 
                Committee of the Board.
                    ``(ii) Special rule.--If that there is only 1 
                director who is neither Chairman nor Vice Chairman of 
                the Board, the Chief Risk Officer of the Bank shall be 
                a temporary member of the Audit Committee until a 2nd 
                Bank director who is neither Chairman nor Vice Chairman 
                of the Board is appointed to the Board.
            ``(B) Duties.--
                    ``(i) Within 1 year after the date of the enactment 
                of this paragraph, the Audit Committee shall develop 
                and implement a program to audit, on a regular and 
                routine basis, the loan, guarantee, insurance, and 
                credit programs of the Bank.
                    ``(ii) The Audit Committee shall--
                            ``(I) provide assistance to the Board in 
                        fulfilling the accounting and reporting 
                        responsibilities of the Board;
                            ``(II) evaluate whether the Bank has 
                        adequate administrative and financial controls;
                            ``(III) review the financial statements 
                        prepared by management for distribution to the 
                        Congress and the public; and
                            ``(IV) provide direction over the internal 
                        audit function and the independent accountants 
                        of the Bank.
            ``(C) Reports.--The Audit Committee shall report to the 
        Board regularly on its activities but may act independently of 
        the Chairman and Vice Chairman.
            ``(D) Procedural rules.--
                    ``(i) Quorum.--Two members shall constitute a 
                quorum of the Audit Committee.
                    ``(ii) Action only by majority vote.--The Audit 
                Committee may act only by majority vote.''.

SEC. 107. REPORT ON PRIVATIZING THE BANK.

    Within 270 days after the date of the enactment of this Act, the 
President, in consultation with the Advisory Committee of the Bank, the 
Comptroller of the Currency, and the Governors of the Federal Reserve 
Board, shall submit to the Committees on Appropriations and Financial 
Services of the House of Representatives and the Committees on 
Appropriations and Banking, Housing, and Urban Affairs of the Senate a 
report on the programs of the Bank that may be fully or partially 
privatized, which report shall--
            (1) consider, but not be limited to, the establishment of a 
        public-private partnership to create a market window, as 
        allowed under Section 15 of the Export-Import Bank Act of 1945, 
        to compete against similar foreign-supported market windows to 
        maximize private-sector participation;
            (2) include an evaluation of whether the administration of 
        the insurance and working-capital programs of the Bank could be 
        partially or completely privatized; and
            (3) include an analysis of the current regulatory 
        restrictions related to capital-allocation requirements for 
        pre-export working capital and cross-border lending in amounts 
        exceeding $25,000,000.

SEC. 108. INDEPENDENT AUDIT OF BANK PORTFOLIO.

    (a) Audit.--The Inspector General of the Export-Import Bank of the 
United States shall conduct an audit of the portfolio risk management 
procedures of the Bank, including a review of the implementation by the 
Bank of the duties assigned to the Chief Risk Officer under the Export-
Import Bank Act of 1945.
    (b) Report.--Not later than 1 year after the appointment of the 
Chief Risk Officer of the Export-Import Bank of the United Sates, the 
Inspector General shall submit to the Committee on Financial Services 
of the House of Representatives and the Committee on Banking, Housing, 
and Urban Affairs of the Senate a written report containing all 
findings and determinations made in carrying out subsection (a).

TITLE II--IMPROVING THE ACCOUNTABILITY OF THE EXPORT-IMPORT BANK OF THE 
                             UNITED STATES

SEC. 201. EARNINGS RETENTION.

    Section 2(a)(1) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635(a)(1)) is amended by striking ``Net earnings of the Bank after 
reasonable provision for possible losses shall be used for payment of 
dividends on capital stock.'' and inserting ``The Bank shall retain not 
less than 30 percent of total net earnings as a provision for possible 
losses. Notwithstanding the previous sentence, during any period when 
the aggregate of such retained earnings is less than 10 percent of the 
applicable amount (as defined under section 6(a)(2)), the Bank shall 
retain not less than 80 percent of total net earning as a provision for 
possible losses. Net earnings that are not retained as a provision for 
possible losses shall be used for payment of dividends on capital 
stock.''.

SEC. 202. OFFICE OF THE PRESIDENT AND TERM LIMITS.

    Section 3 of the Export-Import Bank Act of 1945 (12 U.S.C. 635a) is 
amended--
            (1) in subsection (b), by inserting ``who shall be chosen 
        from among those individuals with at least 15 years of banking 
        experience,'' before ``and who shall serve as chief 
        executive''; and
            (2) in subsection (c)(8)(A)--
                    (A) in clause (iii), by striking ``and'' at the 
                end;
                    (B) in clause (iv), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(v) no person may serve as the President of the Bank for 
        more than 2 terms.''.

SEC. 203. REPAYMENT AS PRIORITY.

    Section 2(b)(1) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635(b)(1)) is amended--
            (1) in subparagraph (B), by striking ``, that loans, so far 
        as possible consistent with the carrying out of the purposes of 
        subsection (a) of this section, shall generally be for specific 
        purposes, and, in the judgment of the Board of Directors, offer 
        reasonable assurance of repayment''; and
            (2) by striking subparagraph (C) and inserting the 
        following:
                    ``(C) The Bank shall conduct all programs of the 
                Bank in a manner that, in the judgment of the Board of 
                Directors, offers reasonable assurance of repayment and 
                minimizes risk of loss. Loans made by the Bank shall be 
                for specific purposes.''.

SEC. 204. LIMITATIONS ON OUTSTANDING LOANS, GUARANTEES, AND INSURANCE.

    Section 6(a)(2) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635e(a)(2)) is amended to read as follows:
            ``(2) Applicable amount.--In paragraph (1), the term 
        `applicable amount' means $130,000,000,000.''.

SEC. 205. CREDIT RISK.

    Section 2(b)(1)(A) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635(b)(1)(A)) is amended by inserting after ``(as defined in section 
10(h)(3))'' the following: ``, provided that this objective is 
accomplished in a manner calculated to minimize financial risk to the 
Bank''.

                         TITLE III--JOB GROWTH

SEC. 301. MEDIUM-SIZED ENTERPRISES.

    Section 2(b)(1)(F) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635(b)(1)(F)) is amended to read as follows:
    ``(F) Fair Consideration for Medium-Sized Enterprises.--In addition 
to the programs of the Bank to encourage the participation of small 
businesses in international commerce, the policies of the Bank shall 
give fair consideration to making loans and providing guarantees for 
the export of goods and services by medium-sized enterprises.''.

SEC. 302. INFLATION ADJUSTMENT.

    Section 12 of the Export-Import Bank Act of 1945 (12 U.S.C. 635i-6) 
is amended to read as follows:

``SEC. 12. INFLATION ADJUSTMENT.

    ``Beginning on the date on which the Bureau of Labor Statistics of 
the Department of Labor first publishes the Consumer Price Index after 
the date that is 1 year after the date of the enactment of this 
section, and annually thereafter, the Bank shall adjust all dollar 
amounts specified in this Act by the percentage change in the Consumer 
Price Index published on that date from the Consumer Price Index 
published the previous year.''.
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