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[112th Congress Public Law 122]
[From the U.S. Government Printing Office]

[[Page 349]]

             EXPORT-IMPORT BANK REAUTHORIZATION ACT OF 2012

[[Page 126 STAT. 350]]

Public Law 112-122
112th Congress

                                 An Act

 
  To reauthorize the Export-Import Bank of the United States, and for 
         other purposes. <<NOTE: May 30, 2012 -  [H.R. 2072]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Export-Import 
Bank Reauthorization Act of 2012.>> 
SECTION 1. <<NOTE: 12 USC 635 note.>> SHORT TITLE; TABLE OF 
                              CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Export-Import Bank 
Reauthorization Act of 2012''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Extension of authority.
Sec. 3. Limitations on outstanding loans, guarantees, and insurance.
Sec. 4. Export-Import Bank exposure limit business plan.
Sec. 5. Study by the Comptroller General on the role of the Bank in the 
           world economy and the Bank's risk management.
Sec. 6. Monitoring of default rates on Bank financing; reports on 
           default rates; safety and soundness review.
Sec. 7. Improvement and clarification of due diligence standards for 
           lender partners.
Sec. 8. Non-subordination requirement.
Sec. 9. Notice and comment for Bank transactions exceeding $100,000,000.
Sec. 10. Categorization of purpose of loans and long-term guarantees in 
           annual report.
Sec. 11. Negotiations to end export credit financing.
Sec. 12. Publication of guidelines for economic impact analyses and 
           documentation of such analyses.
Sec. 13. Report on implementation of recommendations of the Government 
           Accountability Office.
Sec. 14. Examination of Bank support for small business.
Sec. 15. Review and report on domestic content policy.
Sec. 16. Improvement of method for calculating the effects of Bank 
           financing on job creation and maintenance in the United 
           States.
Sec. 17. Periodic audits of Bank transactions.
Sec. 18. Prohibitions on financing for certain persons involved in 
           sanctionable activities with respect to Iran.
Sec. 19. Use of portion of Bank surplus to update information technology 
           systems.
Sec. 20. Modifications relating to the advisory committee.
Sec. 21. Financing for goods manufactured in the United States used in 
           global textile and apparel supply chains.
Sec. 22. Technical correction.
Sec. 23. Sub-Saharan Africa Advisory Committee.
Sec. 24. Dual use exports.
Sec. 25. Effective date.

SEC. 2. EXTENSION OF AUTHORITY.

    Section 7 of the Export-Import Bank Act of 1945 (12 U.S.C. 635f) is 
amended by striking ``2011'' and inserting ``2014''.
SEC. 3. 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--

[[Page 126 STAT. 351]]

            (1) in subparagraph (D), by striking ``and'';
            (2) in subparagraph (E), by striking the comma at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(F) <<NOTE: Applicability. Reports.>> during 
                fiscal year 2012 and each succeeding fiscal year, 
                $120,000,000,000, except that--
                          ``(i) the applicable amount for each of fiscal 
                      years 2013 and 2014 shall be $130,000,000,000 if--
                                    ``(I) the Bank has submitted a 
                                report as required by section 4(a) of 
                                the Export-Import Bank Reauthorization 
                                Act of 2012; and
                                    ``(II) the rate calculated under 
                                section 8(g)(1) of this Act is less than 
                                2 percent for the quarter ending with 
                                the beginning of the fiscal year, or for 
                                any quarter in the fiscal year; and
                          ``(ii) notwithstanding clause (i), the 
                      applicable amount for fiscal year 2014 shall be 
                      $140,000,000,000 if--
                                    ``(I) the rate calculated under 
                                section 8(g)(1) of this Act is less than 
                                2 percent for the quarter ending with 
                                the beginning of the fiscal year, or for 
                                any quarter in the fiscal year;
                                    ``(II) the Bank has submitted a 
                                report as required by subsection (b) of 
                                section 5 of the Export-Import Bank 
                                Reauthorization Act of 2012, except that 
                                the preceding provisions of this 
                                subclause shall not apply if the 
                                Comptroller General has not submitted 
                                the report required by subsection (a) of 
                                such section 5 on or before July 1, 
                                2013; and
                                    ``(III) the Secretary of the 
                                Treasury has submitted the reports 
                                required by section 11(b) of the Export-
                                Import Bank Reauthorization Act of 
                                2012.''.
SEC. 4. <<NOTE: Reports.>> EXPORT-IMPORT BANK EXPOSURE LIMIT 
                    BUSINESS PLAN.

    (a) In General.--Not later than September 30, 2012, the Export-
Import Bank of the United States shall submit to the Congress and the 
Comptroller General a written report that contains the following:
            (1) A business plan that--
                    (A) includes an estimate by the Bank of the 
                appropriate exposure limits of the Bank for 2012, 2013, 
                and 2014;
                    (B) justifies the estimate; and
                    (C) estimates any anticipated growth of the Bank for 
                2012, 2013, and 2014--
                          (i) by industry sector;
                          (ii) by whether the products involved are 
                      short-term loans, medium-term loans, long-term 
                      loans, insurance, medium-term guarantees, or long-
                      term guarantees; and
                          (iii) by key market.
            (2) An analysis of the potential for increased or decreased 
        risk of loss to the Bank as a result of the estimated exposure 
        limit, including an analysis of increased or decreased risks 
        associated with changes in the composition of Bank exposure, by 
        industry sector, by product offered, and by key market.

[[Page 126 STAT. 352]]

            (3) An analysis of the ability of the Bank to meet its small 
        business and sub-Saharan Africa mandates and comply with its 
        carbon policy mandate under the proposed exposure limit, and an 
        analysis of any increased or decreased risk of loss associated 
        with meeting or complying with the mandates under the proposed 
        exposure limit.
            (4) An analysis of the adequacy of the resources of the Bank 
        to effectively process, approve, and monitor authorizations, 
        including the conducting of required economic impact analysis, 
        under the proposed exposure limit.

    (b) GAO Review of Report and Business Plan.--Not later than June 1, 
2013, the Comptroller General shall submit to the Congress a written 
analysis of the report and business plan submitted under subsection (a), 
which shall include such recommendations with respect to the report and 
business plan as the Comptroller General deems appropriate.
SEC. 5. STUDY BY THE COMPTROLLER GENERAL ON THE ROLE OF THE BANK 
                    IN THE WORLD ECONOMY AND THE BANK'S RISK 
                    MANAGEMENT.

    (a) In General.-- <<NOTE: Deadline. Reports.>> Within 10 months 
after the date of the enactment of this Act, the Comptroller General of 
the United States shall complete and submit to the Export-Import Bank of 
the United States, the Committee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Financial Services of the House of 
Representatives a report which--
            (1) evaluates--
                    (A) the history of the rate of growth of the Bank, 
                and its causes, with specific consideration given to--
                          (i) the capital market conditions for export 
                      financing;
                          (ii) increased competition from foreign export 
                      credit agencies;
                          (iii) the rate of growth of the Bank from 2008 
                      to the present;
                    (B) the effectiveness of the Bank's risk management, 
                including--
                          (i) potential for losses from each of the 
                      products offered by the Bank; and
                          (ii) the overall risk of the Bank's portfolio, 
                      taking into account--
                                    (I) market risk;
                                    (II) credit risk;
                                    (III) political risk;
                                    (IV) industry-concentration risk;
                                    (V) geographic-concentration risk;
                                    (VI) obligor-concentration risk; and
                                    (VII) foreign-currency risk;
                    (C) the Bank's use of historical default and 
                recovery rates to calculate future program costs, taking 
                into consideration cost estimates determined under the 
                Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.) 
                and whether discount rates applied to cost estimates 
                should reflect the risks described in subparagraph (B);
                    (D) the fees charged by the Bank for the products 
                the Bank offers, whether the Bank's fees properly 
                reflect the risks described in subparagraph (B), and how 
                the fees

[[Page 126 STAT. 353]]

                are affected by United States participation in 
                international agreements; and
                    (E) whether the Bank's loan loss reserves policy is 
                sufficient to cover the risks described in subparagraph 
                (B); and
            (2) makes appropriate recommendations with respect to the 
        matters so evaluated.

    (b) Recommendations and Report by the Bank.--Not later than 120 days 
after the Bank receives the report, the Bank shall submit to the 
Congress a report on the implementation of recommendations included in 
the report so received. If the Bank does not adopt the recommendations, 
the Bank shall include in its report an explanation of why the Bank has 
not done so.
SEC. 6. MONITORING OF DEFAULT RATES ON BANK FINANCING; REPORTS ON 
                    DEFAULT RATES; SAFETY AND SOUNDNESS REVIEW.

    Section 8 of the Export-Import Bank Act of 1945 (12 U.S.C. 635g) is 
amended by adding at the end the following:
    ``(g) Monitoring of Default Rates on Bank Financing; Reports on 
Default Rates; Safety and Soundness Review.--
            ``(1) Monitoring of default rates.--Not less frequently than 
        quarterly, the Bank shall calculate the rate at which the 
        entities to which the Bank has provided short-, medium-, or 
        long-term financing are in default on a payment obligation under 
        the financing, by dividing the total amount of the required 
        payments that are overdue by the total amount of the financing 
        involved.
            ``(2) Additional calculation by type of product, by key 
        market, and by industry sector; report to congress.--In 
        addition, the Bank shall, not less frequently than quarterly--
                    ``(A) calculate the rate of default--
                          ``(i) with respect to whether the products 
                      involved are short-term loans, medium-term loans, 
                      long-term loans, insurance, medium-term 
                      guarantees, or long-term guarantees;
                          ``(ii) with respect to each key market 
                      involved; and
                          ``(iii) with respect to each industry sector 
                      involved; and
                    ``(B) submit to the Committee on Banking, Housing, 
                and Urban Affairs of the Senate and the Committee on 
                Financial Services of the House of Representatives a 
                report on each such rate and any information the Bank 
                deems relevant.
            ``(3) Report on causes of default rate; plan to reduce 
        default rate.--Within 45 days after a rate calculated under 
        paragraph (1) equals or exceeds 2 percent, the Bank shall submit 
        to the Congress a written report that explains the circumstances 
        that have caused the default rate to be at least 2 percent, and 
        includes a plan to reduce the default rate to less than 2 
        percent.
            ``(4) Plan contents.--The plan referred to in paragraph (3) 
        shall--
                    ``(A) provide a detailed explanation of the 
                processes and controls by which the Bank monitors and 
                tracks outstanding loans;

[[Page 126 STAT. 354]]

                    ``(B) detail specific planned actions, including a 
                time frame for completing the actions, to reduce the 
                default rate described in paragraph (1) to less than 2 
                percent.
            ``(5) Monthly reports required while default rate is at 
        least 2 percent.--For so long as the default rate calculated 
        under paragraph (1) is at least 2 percent, the Bank shall submit 
        monthly reports to the Congress describing the specific actions 
        taken during such period to reduce the default rate.
            ``(6) <<NOTE: Time period.>> Safety and soundness review.--
        If the default rate calculated under paragraph (1) remains above 
        2 percent for a period of 6 months, the Secretary of the 
        Treasury shall provide for an independent third party to--
                    ``(A) <<NOTE: Determination.>> conduct a review of 
                the loan programs and funds of the Bank, which shall 
                determine--
                          ``(i) the financial safety and soundness of 
                      the programs and funds; and
                          ``(ii) the extent of loan loss reserves and 
                      capital adequacy of the programs and funds; and
                    ``(B) submit to the Secretary, within 60 days after 
                the end of the 6-month period, a report that--
                          ``(i) describes the methodology and standards 
                      used to conduct the review required by 
                      subparagraph (A);
                          ``(ii) sets forth the results and findings of 
                      the review, including the extent of loan loss 
                      reserves and capital adequacy of the programs and 
                      funds of the Bank; and
                          ``(iii) includes recommendations regarding 
                      restoring the reserves and capital to maintain the 
                      programs and funds in a safe and sound 
                      condition.''.
SEC. 7. IMPROVEMENT AND CLARIFICATION OF DUE DILIGENCE STANDARDS 
                    FOR LENDER PARTNERS.

    Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 635) is 
amended by adding at the end the following:
    ``(i) Due Diligence Standards for Lender Partners.--The Bank shall 
set due diligence standards for its lender partners and participants, 
which should be applied across all programs consistently. To minimize or 
prevent fraudulent activity, the Bank should require all delegated 
lenders to implement `Know your customer practices'.''.
SEC. 8. NON-SUBORDINATION REQUIREMENT.

    Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 635), as 
amended by section 7 of this Act, is amended by adding at the end the 
following:
    ``(j) <<NOTE: Contracts.>> Non-subordination Requirement.--In 
entering into financing contracts, the Bank shall seek a creditor status 
which is not subordinate to that of all other creditors, in order to 
reduce the risk to, and enhance recoveries for, the Bank.''.
SEC. 9. NOTICE AND COMMENT FOR BANK TRANSACTIONS EXCEEDING 
                    $100,000,000.

    (a) In General.--Section 3(c) of the Export-Import Bank Act of 1945 
(12 U.S.C. 635a(c)) is amended by adding at the end the following:
            ``(10) Notice and comment requirements.--
                    ``(A) In general.--Before any meeting of the Board 
                for final consideration of a long-term transaction the 
                value

[[Page 126 STAT. 355]]

                of which exceeds $100,000,000, and concurrent with any 
                statement required to be submitted under section 2(b)(3) 
                with respect to the transaction, the Bank shall provide 
                a notice and comment period.
                    ``(B) <<NOTE: Time period.>> Financial threshold 
                determinations.--For purposes of determining whether the 
                value of a proposed transaction exceeds the financial 
                threshold set forth in subparagraph (A), the Bank shall 
                aggregate the dollar amount of the proposed transaction 
                and the dollar amounts of all long-term loans and 
                guarantees, approved by the Bank in the preceding 12-
                month period, that involved the same foreign entity and 
                substantially the same product to be produced.
                    ``(C) Specific requirements.--
                          ``(i) In general.--The Bank shall--
                                    ``(I) <<NOTE: Federal Register, 
                                publication.>> publish in the Federal 
                                Register a notice of the application 
                                proposing the transaction;
                                    ``(II) <<NOTE: Time 
                                period.>> provide a period of not less 
                                than 25 days for the submission to the 
                                Bank of comments on the application; and
                                    ``(III) notify the Committee on 
                                Banking, Housing, and Urban Affairs of 
                                the Senate, and the Committee on 
                                Financial Services of the House of 
                                Representatives of the application, and 
                                seek comments on the application from 
                                the Department of Commerce and the 
                                Office of Management and Budget.
                          ``(ii) Content of notice.--The notice 
                      published under clause (i)(I) with respect to an 
                      application for a loan or financial guarantee 
                      shall include appropriate information about--
                                    ``(I) a brief non-proprietary 
                                description of the purposes of the 
                                transaction and the anticipated use of 
                                any item being exported, including, to 
                                the extent the Bank is reasonably aware, 
                                whether the item may be used to produce 
                                exports or provide services in 
                                competition with the exportation of 
                                goods or the provision of services by a 
                                United States industry;
                                    ``(II) the identities of the 
                                obligor, principal supplier, and 
                                guarantor; and
                                    ``(III) a description, such as type 
                                or model number, of any item with 
                                respect to which Bank financing is being 
                                sought, but only to the extent the 
                                description does not disclose any 
                                information that is confidential or 
                                proprietary business information, that 
                                would violate the Trade Secrets Act, or 
                                that would jeopardize jobs in the United 
                                States by supplying information which 
                                competitors could use to compete with 
                                companies in the United States.
                    ``(D) Procedure regarding materially changed 
                applications.--
                          ``(i) In general.-- <<NOTE: Federal Register, 
                      publication.>> If a material change is made to an 
                      application to which this paragraph applies, after 
                      a notice with respect to the application is 
                      published under subparagraph (C)(i)(I), the Bank 
                      shall publish

[[Page 126 STAT. 356]]

                      in the Federal Register a revised notice of the 
                      application and provide for an additional comment 
                      period as provided in subparagraph (C)(i)(II).
                          ``(ii) Material change defined.--In clause 
                      (i), the term `material change', with respect to 
                      an application for a loan or guarantee, includes 
                      an increase of at least 25 percent in the amount 
                      of a loan or guarantee requested in the 
                      application.
                    ``(E) Requirement to address views of commenters.--
                Before taking final action on an application to which 
                this paragraph applies, the staff of the Bank shall 
                provide in writing to the Board of Directors the views 
                of any person who submitted comments on the application 
                pursuant to this paragraph.
                    ``(F) <<NOTE: Deadlines.>> Publication of 
                conclusions.--Within 30 days after a final decision of 
                the Board of Directors with respect to an application to 
                which this paragraph applies, the Bank shall provide to 
                a commenter on the application or the decision who makes 
                a request therefor, a non-confidential summary of the 
                facts found and conclusions reached in any detailed 
                analysis or similar study with respect to the loan or 
                guarantee that is the subject of the application, that 
                was submitted to the Board of Directors. Such summary 
                should be sent within 30 days of the receipt of the 
                written request or date of the final decision of the 
                Board of Directors, whichever is later.
                    ``(G) Rule of interpretation.--The obligations 
                imposed by this paragraph shall not be interpreted to 
                create, modify, or preclude any legal right of 
                action.''.

    (b) Effective Date.-- <<NOTE: 12 USC 635a note.>> The amendment made 
by subsection (a) shall take effect 60 days after the date of the 
enactment of this Act.
SEC. 10. CATEGORIZATION OF PURPOSE OF LOANS AND LONG-TERM 
                      GUARANTEES IN ANNUAL REPORT.

    Section 8 of the Export-Import Bank Act of 1945 (12 U.S.C. 635g), as 
amended by section 6 of this Act, is amended by adding at the end the 
following:
    ``(h) Categorization of Purpose of Loans and Long-term Guarantees.--
In the annual report of the Bank under subsection (a), the Bank shall 
categorize each loan and long-term guarantee made by the Bank in the 
fiscal year covered by the report, and according to the following 
purposes:
            ``(1) `To assume commercial or political risk that exporter 
        or private financial institutions are unwilling or unable to 
        undertake'.
            ``(2) `To overcome maturity or other limitations in private 
        sector export financing'.
            ``(3) `To meet competition from a foreign, officially 
        sponsored, export credit competition'.
            ``(4) `Not identified', and the reason why the purpose is 
        not identified.''.
SEC. 11. <<NOTE: 12 USC 635a-5.>> NEGOTIATIONS TO END EXPORT 
                      CREDIT FINANCING.

    (a) In General.--The Secretary of the Treasury (in this section 
referred to as the ``Secretary'') shall initiate and pursue 
negotiations--

[[Page 126 STAT. 357]]

            (1) with other major exporting countries, including members 
        of the Organisation for Economic Co-operation and Development 
        (OECD) and non-OECD members, to substantially reduce, with the 
        ultimate goal of eliminating, subsidized export financing 
        programs and other forms of export subsidies; and
            (2) with all countries that finance air carrier aircraft 
        with funds from a state-sponsored entity, to substantially 
        reduce, with the ultimate goal of eliminating, aircraft export 
        credit financing for all aircraft covered by the 2007 Sector 
        Understanding on Export Credits for Civil Aircraft (in this 
        section referred to as the ``ASU''), including any modification 
        thereof, and all of the following types of aircraft:
                    (A) Heavy aircraft that are capable of a takeoff 
                weight of 300,000 pounds or more, whether or not 
                operating at such a weight during a particular phase of 
                flight.
                    (B) Large aircraft that are capable of a takeoff 
                weight of more than 41,000 pounds, and have a maximum 
                certificated takeoff weight of not more than 300,000 
                pounds.
                    (C) Small aircraft that have a maximum certificated 
                takeoff weight of 41,000 pounds or less.

    (b) Annual Reports on Progress of Negotiations.-- 
<<NOTE: Certifications.>> Not later than 180 days after the date of the 
enactment of this Act, and annually thereafter, the Secretary shall 
submit to the Committee on Banking, Housing, and Urban Affairs of the 
Senate and the Committee on Financial Services of the House of 
Representatives--
            (1) a report on the progress of any negotiations described 
        in subsection (a)(1), until the Secretary certifies in writing 
        to the committees that all countries that support subsidized 
        export financing programs have agreed to end the support; and
            (2) a report on the progress of any negotiations described 
        in subsection (a)(2), including the progress of any negotiations 
        with respect to each classification of aircraft set forth in 
        subsection (a)(2), until the Secretary certifies in writing to 
        the committees that all countries that support subsidized export 
        financing programs have agreed to end the support of aircraft 
        covered by the ASU.
SEC. 12. PUBLICATION OF GUIDELINES FOR ECONOMIC IMPACT ANALYSES 
                      AND DOCUMENTATION OF SUCH ANALYSES.

    (a) <<NOTE: Deadline. Public information. 12 USC 635 
note.>> Publication of Guidelines.--Not later than 180 days after the 
date of the enactment of this Act, the Export-Import Bank of the United 
States shall develop and make publicly available methodological 
guidelines to be used by the Bank in conducting economic impact analyses 
or similar studies under section 2(e) of the Export-Import Bank Act of 
1945. In developing the guidelines, the Bank shall take into 
consideration any relevant guidance from the Office of Management and 
Budget.

    (b) Maintenance of Documentation.--Section 2(e)(7) of the Export-
Import Bank Act of 1945 (12 U.S.C. 635(e)(7)) is amended by 
redesignating subparagraphs (E) and (F) as subparagraphs (F) and (G), 
respectively, and inserting after subparagraph (D) the following:
                    ``(E) Maintenance of documentation.--The Bank shall 
                maintain documentation relating to economic impact

[[Page 126 STAT. 358]]

                analyses and similar studies conducted under this 
                subsection in a manner consistent with the Standards for 
                Internal Control of the Federal Government issued by the 
                Comptroller General of the United States.''.
SEC. 13. REPORT ON IMPLEMENTATION OF RECOMMENDATIONS OF THE 
                      GOVERNMENT ACCOUNTABILITY OFFICE.

    Not later than 180 days after the date of the enactment of this Act, 
the Export-Import Bank of the United States shall submit to the 
Committee on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of Representatives a report 
on the implementation or rejection by the Bank of the recommendations 
contained in the report of the Government Accountability Office entitled 
``Export-Import Bank: Improvements Needed in Assessment of Economic 
Impact'', dated September 12, 2007 (GAO-07-1071), that includes--
            (1) a detailed description of the progress made in 
        implementing each such recommendation; and
            (2) for any such recommendation that has not yet been 
        implemented, an explanation of the reasons the recommendation 
        has not been implemented.
SEC. 14. EXAMINATION OF BANK SUPPORT FOR SMALL BUSINESS.

     <<NOTE: Deadline. Reports.>> Within 180 days after the date of the 
enactment of this Act, the Export-Import Bank of the United States shall 
examine and report to Congress on its current programs, products, and 
polices with respect to the implementation of its export credit 
insurance program, delegated lending authority, and direct loans, and 
any other programs, products, and policies established to support 
exports from small businesses in the United States, and determine the 
extent to which those policies adequately meet the needs of the small 
businesses in obtaining Bank financing to support the maintenance or 
creation of jobs in the United States through exports, consistent with 
the requirement that the Bank obtain a reasonable assurance of 
repayment.
SEC. 15. REVIEW AND REPORT ON DOMESTIC CONTENT POLICY.

    (a) In General.--The Export-Import Bank of the United States shall 
conduct a review of its domestic content policy for medium- and long-
term transactions. The review shall examine and evaluate the 
effectiveness of the Bank's policy--
            (1) in maintaining and creating jobs in the United States; 
        and
            (2) in contributing to a stronger national economy through 
        the export of goods and services.

    (b) Factors to Consider.--In conducting the review under subsection 
(a), the Bank shall consider the following:
            (1) Whether the domestic content policy accurately captures 
        the costs of United States production of goods and services, 
        including the direct and indirect costs of manufacturing costs, 
        parts, components, materials and supplies, research, planning 
        engineering, design, development, production, return on 
        investment, marketing and other business costs and the effect of 
        such policy on the maintenance and creation of jobs in the 
        United States.
            (2) The ability of the Bank to provide financing that is 
        competitive with the financing provided by foreign export credit 
        agencies and the impact that such financing has in enabling

[[Page 126 STAT. 359]]

        companies with operations in the United States to contribute to 
        a stronger United States economy by increasing employment 
        through the export of goods and services.
            (3) The effects of the domestic content policy on the 
        manufacturing and service workforce of the United States.
            (4) Any recommendations the members of the Bank's Advisory 
        Committee have regarding the Bank's domestic content policy.
            (5) The effect that changes to the Bank's domestic content 
        requirements would have in providing companies an incentive to 
        create and maintain operations in the United States and to 
        increase jobs in the United States.

    (c) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Bank shall submit a report on the results of the review 
conducted under this section to the Committee on Banking, Housing, and 
Urban Affairs of the Senate, and the Committee on Financial Services of 
the House of Representatives.
SEC. 16. <<NOTE: 12 USC 635a-2 note.>> IMPROVEMENT OF METHOD FOR 
                      CALCULATING THE EFFECTS OF BANK FINANCING ON 
                      JOB CREATION AND MAINTENANCE IN THE UNITED 
                      STATES.

    (a) GAO Study.--The Comptroller General of the United States shall 
conduct a study of the process and methodology used by the Export-Import 
Bank of the United States (in this section referred to as the ``Bank'') 
to calculate the effects of the provision of financing by the Bank on 
the creation and maintenance of employment in the United States, 
determine and assess the basis on which the Bank has so used the 
methodology, and make any recommendations the Comptroller General deems 
appropriate.
    (b) Report.--Within 1 year after the date of the enactment of this 
Act, the Comptroller General shall submit to the Congress and the Bank 
the results of the study required by subsection (a).
    (c) Implementation of Recommendations.--If the report submitted 
pursuant to subsection (b) includes recommendations, the Bank may 
establish a more accurate methodology of the kind described in 
subsection (a) based on the recommendations.
SEC. 17. <<NOTE: 12 USC 635a-6.>> PERIODIC AUDITS OF BANK 
                      TRANSACTIONS.

    (a) In General.-- <<NOTE: Deadline. Determination.>> Within 2 years 
after the date of the enactment of this Act, and periodically (but not 
less frequently than every 4 years) thereafter, the Comptroller General 
of the United States shall conduct an audit of the loan and guarantee 
transactions of the Export-Import Bank of the United States to determine 
the compliance of the Bank with the underwriting guidelines, lending 
policies, due diligence procedures, and content guidelines of the Bank.

    (b) <<NOTE: Reports.>> Review of Fraud Controls.--The Comptroller 
General of the United States shall review the adequacy of the design and 
effectiveness of the controls used by the Export-Import Bank of the 
United States to prevent, detect, and investigate fraudulent 
applications for loans and guarantees, including by auditing a sample of 
Bank transactions, and submit to the Congress a written report which 
contains such recommendations with respect to the controls as the 
Comptroller General deems appropriate.

[[Page 126 STAT. 360]]

SEC. 18. <<NOTE: 12 USC 635 note.>> PROHIBITIONS ON FINANCING FOR 
                      CERTAIN PERSONS INVOLVED IN SANCTIONABLE 
                      ACTIVITIES WITH RESPECT TO IRAN.

    (a) Prohibition on Financing for Persons That Engage in Certain 
Sanctionable Activities.--
            (1) In general.-- <<NOTE: Effective date.>> Beginning on the 
        date that is 180 days after the date of the enactment of this 
        Act, the Board of Directors of the Export-Import Bank of the 
        United States may not approve any transaction that is subject to 
        approval by the Board with respect to the provision by the Bank 
        of any guarantee, insurance, or extension of credit, or the 
        participation by the Bank in any extension of credit, to a 
        person in connection with the exportation of any good or service 
        unless the person makes the certification described in paragraph 
        (2).
            (2) Certification described.--The certification described in 
        this paragraph is a certification by a person--
                    (A) that neither the person nor any other person 
                owned or controlled by the person--
                          (i) engages in any activity described in 
                      section 5(a) of the Iran Sanctions Act of 1996 
                      (Public Law 104-172; 50 U.S.C. 1701 note) for 
                      which the person may be subject to sanctions under 
                      that Act;
                          (ii) exports sensitive technology, as defined 
                      in section 106 of the Comprehensive Iran 
                      Sanctions, Accountability, and Divestment Act of 
                      2010 (22 U.S.C. 8515), to Iran; or
                          (iii) engages in any activity prohibited by 
                      part 560 of title 31, Code of Federal Regulations 
                      (commonly known as the ``Iranian Transactions 
                      Regulations''), unless the activity is disclosed 
                      to the Office of Foreign Assets Control of the 
                      Department of the Treasury when the activity is 
                      discovered; or
                    (B) if the person or any other person owned or 
                controlled by the person has engaged in an activity 
                described in subparagraph (A), that--
                          (i) <<NOTE: President.>> in the case of an 
                      activity described in subparagraph (A)(i)--
                                    (I) the President has waived the 
                                imposition of sanctions with respect to 
                                the person that engaged in that activity 
                                pursuant to section 4(c), 6(b)(5), or 
                                9(c) of the Iran Sanctions Act of 1996 
                                (Public Law 104-172; 50 U.S.C. 1701 
                                note);
                                    (II)(aa) the President has invoked 
                                the special rule described in section 
                                4(e)(3) of that Act with respect to the 
                                person that engaged in that activity; or
                                    (bb)(AA) the person that engaged in 
                                that activity determines, based on its 
                                best knowledge and belief, that the 
                                person meets the criteria described in 
                                subparagraph (A) of such section 4(e)(3) 
                                and has provided to the President the 
                                assurances described in subparagraph (B) 
                                of that section; and
                                    (BB) the Secretary of State has 
                                issued an advisory opinion to that 
                                person that the person meets such 
                                criteria and has provided to the 
                                President those assurances; or

[[Page 126 STAT. 361]]

                                    (III) the President has determined 
                                that the criteria have been met for the 
                                exception provided for under section 
                                5(a)(3)(C) of the Iran Sanctions Act of 
                                1996 to apply with respect to the person 
                                that engaged in that activity; or
                          (ii) in the case of an activity described in 
                      subparagraph (A)(ii), the President has waived, 
                      pursuant to section 401(b)(1) of the Comprehensive 
                      Iran Sanctions, Accountability, and Divestment Act 
                      of 2010 (22 U.S.C. 8551(b)(1)), the application of 
                      the prohibition under section 106(a) of that Act 
                      (22 U.S.C. 8515(a)) with respect to that person.

    (b) Prohibition on Financing.-- <<NOTE: Deadline.>> Beginning on the 
date that is 180 days after the date of the enactment of this Act, the 
Board of Directors of the Export-Import Bank of the United States may 
not approve any transaction that is subject to approval by the Board 
with respect to the provision by the Bank of any guarantee, insurance, 
or extension of credit, or the participation by the Bank in any 
extension of credit, in connection with a financing in which a person 
that is a borrower or controlling sponsor, or a person that is owned or 
controlled by such borrower or controlling sponsor, is subject to 
sanctions under section 5(a) of the Iran Sanctions Act of 1996 (Public 
Law 104-172; 50 U.S.C. 1701 note).

    (c) Advisory Opinions.--
            (1) Authority.--The Secretary of State is authorized to 
        issue advisory opinions described in subsection 
        (a)(2)(B)(i)(II).
            (2) <<NOTE: Deadline.>> Notice to congress.--If the 
        Secretary issues an advisory opinion pursuant to paragraph (1), 
        the Secretary shall notify the appropriate congressional 
        committees of the opinion not later than 30 days after issuing 
        the opinion.

    (d) Definitions.--In this section:
            (1) Appropriate congressional committees; person.--The terms 
        ``appropriate congressional committees'' and ``person'' have the 
        meanings given those terms in section 14 of the Iran Sanctions 
        Act of 1996 (Public Law 104-172; 50 U.S.C. 1701 note).
            (2) Controlling sponsor.--The term ``controlling sponsor'' 
        means a person providing controlling direct private equity 
        investment (excluding investments made through publicly held 
        investment funds, publicly held securities, public offerings, or 
        similar public market vehicles) in connection with a financing.
SEC. 19. USE OF PORTION OF BANK SURPLUS TO UPDATE INFORMATION 
                      TECHNOLOGY SYSTEMS.

    Section 3 of the Export-Import Bank Act of 1945 (12 U.S.C. 635a) is 
amended by adding at the end the following:
    ``(j) Authority to Use Portion of Bank Surplus to Update Information 
Technology Systems.--
            ``(1) In general.--Subject to paragraphs (3) and (4), the 
        Bank may use an amount equal to 1.25 percent of the surplus of 
        the Bank during fiscal years 2012, 2013, and 2014 to--
                    ``(A) seek to remedy any of the operational weakness 
                and risk management vulnerabilities of the Bank which 
                are the result of the information technology system of 
                the Bank;

[[Page 126 STAT. 362]]

                    ``(B) remedy data fragmentation, enhance information 
                flow throughout the Bank, and manage data across the 
                Bank; and
                    ``(C) enhance the operational capacity and risk 
                management capabilities of the Bank to better enable the 
                Bank to increase exports and grow jobs while protecting 
                the taxpayer.
            ``(2) <<NOTE: Definition.>> Surplus.--In paragraph (1), the 
        term `surplus' means the amount (if any) by which--
                    ``(A) the sum of the interest and fees collected by 
                the Bank; exceeds
                    ``(B) the sum of--
                          ``(I) the funds set aside to cover expected 
                      losses on transactions financed by the Bank; and
                          ``(ii) the costs incurred to cover the 
                      administrative expenses of the Bank.
            ``(3) Limitation.--The aggregate of the amounts used in 
        accordance with paragraph (1) for fiscal years 2012, 2013, and 
        2014 shall not exceed $20,000,000.
            ``(4) Subject to appropriations.--The authority provided by 
        paragraph (1) may be exercised only to such extent and in such 
        amounts as are provided in advance in appropriations Acts.''.
SEC. 20. MODIFICATIONS RELATING TO THE ADVISORY COMMITTEE.

    (a) Representation of the Textile Industry.--Section 3(d)(1)(B) of 
the Export-Import Bank Act of 1945 (12 U.S.C. 635a(d)(1)(B)) is amended 
by striking ``and State government'' inserting ``State government, and 
the textile industry''.
    (b) Access to Bank Products by the Textile Industry.--
            (1) Consideration by advisory committee.--Section 3(d) of 
        such Act (12 U.S.C. 635a(d)) is amended by adding at the end the 
        following:

    ``(5) In carrying out paragraph (4), the Advisory Committee shall 
consider ways to promote the financing of Bank transactions for the 
textile industry, consistent with the requirement that the Bank obtain a 
reasonable assurance of repayment, and determine ways to--
            ``(A) increase Bank support for the exports of textile 
        components or inputs made in the United States; and
            ``(B) support the maintenance, promotion and expansion of 
        jobs in the United States that are critical to the manufacture 
        of textile components and inputs.''.
            (2) Annual report to congress on advisory committee 
        determinations.--Section 8 of such Act (12 U.S.C. 635g), as 
        amended by sections 6 and 10 of this Act, is amended by adding 
        at the end the following:

    ``(i) <<NOTE: Reports.>> Access to Bank Products by the Textile 
Industry.--The Bank shall include in its annual report to the Congress 
under subsection (a) of this section a report on the determinations made 
by the Advisory Committee under section 3(d)(5) in the year covered by 
the report.''.
SEC. 21. FINANCING FOR GOODS MANUFACTURED IN THE UNITED STATES 
                      USED IN GLOBAL TEXTILE AND APPAREL SUPPLY 
                      CHAINS.

    (a) <<NOTE: Study.>> Analysis of Textile Industry Use of Bank 
Products.--The Export-Import Bank of the United States (in this section

[[Page 126 STAT. 363]]

referred to as the ``Bank'') shall conduct a study of the extent to 
which the products offered by the Bank are available and used by 
manufacturers in the United States that export goods manufactured in the 
United States used as components in global textile and apparel supply 
chains. In conducting the study, the Bank shall examine the following:
            (1) Impediments to use of Bank products by such firms.
            (2) The number of jobs in the United States that are 
        supported by the export of such component parts and the degree 
        to which access to financing will increase exports.
            (3) Specific proposals for how the Bank, using its authority 
        and products, could provide the financing, including through 
        risk-sharing with other export credit agencies and other third 
        parties.
            (4) Ways in which the Bank can take into account the full 
        global textile and apparel supply chain--in particular, the 
        ultimate purchase, and ultimate United States-based purchaser, 
        of the finished good, that would result from the supply chain--
        in making credit and risk determinations and the 
        creditworthiness of the ultimate purchaser.
            (5) Proposals for new products the Bank could offer to 
        provide the financing, including--
                    (A) the extent to which the Bank is authorized to 
                offer new products;
                    (B) the extent to which the Bank would need 
                additional authority to offer the new products; and
                    (C) specific proposals for changes in law that would 
                enable the Bank to provide such financing in compliance 
                with the credit and risk standards of the Bank.

    (b) Report.--Within 180 days after the date of the enactment of this 
Act, the Bank shall submit to the Congress a report that contains the 
results of the study required by subsection (a).
    (c) Annual Reports.--Section 8 of the Export-Import Bank Act of 1945 
(12 U.S.C. 635g), as amended by sections 6, 10, and 20(b)(2) of this 
Act, is amended by adding at the end the following:
    ``(j) Textile and Apparel Supply Chain Financing.--The Bank shall 
include in its annual report to the Congress under subsection (a) of 
this section a description of the success of the Bank in providing 
effective and reasonably priced financing to the United States textile 
and apparel industry for exports of goods manufactured in the United 
States that are used as components in global textile and apparel supply 
chains in the year covered by the report, and steps the Bank has taken 
to increase the use of Bank products by such firms.''.
SEC. 22. TECHNICAL CORRECTION.

    Section 2(b)(2)(B)(ii) of the Export-Import Bank Act of 1945 (12 
U.S.C. 635(b)(2)(B)(ii)) is amended by striking subclauses (I), (IV), 
and (VII) and by redesignating subclauses (II), (III), (V), (VI), 
(VIII), and (IX) as subclauses (I) through (VI), respectively.
SEC. 23. SUB-SAHARAN AFRICA ADVISORY COMMITTEE.

     Section 2(b)(9)(B)(iii) of the Export-Import Bank Act of 1945 (12 
U.S.C. 635(b)(9)(B)(iii)) is amended by striking ``2011'' and inserting 
``2014''.

[[Page 126 STAT. 364]]

SEC. 24. DUAL USE EXPORTS.

    Section 4 of Public Law 109-438 (12 U.S.C. 635 note; 108 Stat. 4376) 
is amended by striking ``2011'' and inserting ``2014''.
SEC. 25. <<NOTE: 12 USC 635 note.>> EFFECTIVE DATE.

     Except as provided in section 9(b), this Act and the amendments 
made by this Act shall take effect on the earlier of June 1, 2012, or 
the date of the enactment of this Act.

    Approved May 30, 2012.

LEGISLATIVE HISTORY--H.R. 2072:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 112-201 (Comm. on Financial Services).
CONGRESSIONAL RECORD, Vol. 158 (2012):
            May 9, considered and passed House.
            May 15, considered and passed Senate.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2012):
            May 30, Presidential remarks.

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