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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2072 Enrolled Bill (ENR)]

        H.R.2072

                      One Hundred Twelfth Congress

                                 of the

                        United States of America

                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
            the third day of January, two thousand and twelve

                                 An Act

 
  To reauthorize the Export-Import Bank of the United States, and for 
                             other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
SECTION 1. 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--
        (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) 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. 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.
        (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.--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 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;
            ``(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) 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) 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) 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 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) 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) publish in the Federal Register a notice of 
                the application proposing the transaction;
                    ``(II) 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.--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 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) 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.--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. 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--
        (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.--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) 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 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.
    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 
    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. 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. PERIODIC AUDITS OF BANK TRANSACTIONS.
    (a) In General.--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) 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.
  SEC. 18. 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.--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) 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
                    (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.--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) 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;
            ``(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) 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) 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) Analysis of Textile Industry Use of Bank Products.--The Export-
Import Bank of the United States (in this section 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''.
  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. 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.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
```