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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3611 Introduced in House (IH)]

<DOC>

114th CONGRESS
  1st Session
                                H. R. 3611

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

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           September 25, 2015

 Mr. Fincher (for himself, Mr. Kinzinger of Illinois, Mr. Costello of 
  Pennsylvania, Mr. Mica, and Mr. Crawford) introduced the following 
    bill; which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL

 
To reauthorize and reform 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 
Reform and Reauthorization Act of 2015''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
  TITLE I--TAXPAYER PROTECTION PROVISIONS AND INCREASED ACCOUNTABILITY

Sec. 101. Reduction in authorized amount of outstanding loans, 
                            guarantees, and insurance.
Sec. 102. Increase in loss reserves.
Sec. 103. Review of fraud controls.
Sec. 104. Office of Ethics.
Sec. 105. Chief Risk Officer.
Sec. 106. Risk Management Committee.
Sec. 107. Independent audit of bank portfolio.
Sec. 108. Pilot program for reinsurance.
             TITLE II--PROMOTION OF SMALL BUSINESS EXPORTS

Sec. 201. Increase in small business lending requirements.
Sec. 202. Report on programs for small and medium-sized businesses.
                 TITLE III--MODERNIZATION OF OPERATIONS

Sec. 301. Electronic payments and documents.
Sec. 302. Reauthorization of information technology updating.
                      TITLE IV--GENERAL PROVISIONS

Sec. 401. Extension of authority.
Sec. 402. Certain updated loan terms and amounts.
                         TITLE V--OTHER MATTERS

Sec. 501. Prohibition on discrimination based on industry.
Sec. 502. Negotiations to end export credit financing.
Sec. 503. Study of financing for information and communications 
                            technology systems.

  TITLE I--TAXPAYER PROTECTION PROVISIONS AND INCREASED ACCOUNTABILITY

SEC. 101. REDUCTION IN AUTHORIZED AMOUNT OF OUTSTANDING LOANS, 
              GUARANTEES, AND INSURANCE.

    Section 6(a) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635e(a)) is amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by striking paragraph (2) and inserting the following:
            ``(2) Applicable amount defined.--In this subsection, the 
        term `applicable amount', for each of fiscal years 2015 through 
        2019, means $135,000,000,000.
            ``(3) Freezing of lending cap if default rate is 2 percent 
        or more.--If the rate calculated under section 8(g)(1) is 2 
        percent or more for a quarter, the Bank may not exceed the 
        amount of loans, guarantees, and insurance outstanding on the 
        last day of that quarter until the rate calculated under 
        section 8(g)(1) is less than 2 percent.''.

SEC. 102. INCREASE IN LOSS RESERVES.

    (a) In General.--Section 6 of the Export-Import Bank Act of 1945 
(12 U.S.C. 635e) is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following:
    ``(b) Reserve Requirement.--The Bank shall build to and hold in 
reserve, to protect against future losses, an amount that is not less 
than 5 percent of the aggregate amount of disbursed and outstanding 
loans, guarantees, and insurance of the Bank.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date that is one year after the date of the 
enactment of this Act.

SEC. 103. REVIEW OF FRAUD CONTROLS.

    Section 17(b) of the Export-Import Bank Reauthorization Act of 2012 
(12 U.S.C. 635a-6(b)) is amended to read as follows:
    ``(b) Review of Fraud Controls.--Not later than 4 years after the 
date of the enactment of the Export-Import Bank Reform and 
Reauthorization Act of 2015, and every 4 years thereafter, the 
Comptroller General of the United States shall--
            ``(1) 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 and the compliance by the 
        Bank with the controls, including by auditing a sample of Bank 
        transactions; and
            ``(2) submit a written report regarding the findings of the 
        review and providing such recommendations with respect to the 
        controls described in paragraph (1) as the Comptroller General 
        deems appropriate to--
                    ``(A) the Committee on Banking, Housing, and Urban 
                Affairs and the Committee on Appropriations of the 
                Senate; and
                    ``(B) the Committee on Financial Services and the 
                Committee on Appropriations of the House of 
                Representatives.''.

SEC. 104. OFFICE OF ETHICS.

    Section 3 of the Export-Import Bank Act of 1945 (12 U.S.C. 635a) is 
amended by adding at the end the following:
    ``(k) Office of Ethics.--
            ``(1) Establishment.--There is established an Office of 
        Ethics within the Bank, which shall oversee all ethics issues 
        within the Bank.
            ``(2) Head of office.--
                    ``(A) In general.--The head of the Office of Ethics 
                shall be the Chief Ethics Officer, who shall report to 
                the Board of Directors.
                    ``(B) Appointment.--Not later than 180 days after 
                the date of the enactment of the Export-Import Bank 
                Reform and Reauthorization Act of 2015, the Chief 
                Ethics Officer shall be--
                            ``(i) appointed by the President of the 
                        Bank from among persons--
                                    ``(I) with a background in law who 
                                have experience in the fields of law 
                                and ethics; and
                                    ``(II) who are not serving in a 
                                position requiring appointment by the 
                                President of the United States before 
                                being appointed to be Chief Ethics 
                                Officer; and
                            ``(ii) approved by the Board.
                    ``(C) Designated agency ethics official.--The Chief 
                Ethics Officer shall serve as the designated agency 
                ethics official for the Bank pursuant to the Ethics in 
                Government Act of 1978 (5 U.S.C. App. 101 et seq.).
            ``(3) Duties.--The Office of Ethics has jurisdiction over 
        all employees of, and ethics matters relating to, the Bank. 
        With respect to employees of the Bank, the Office of Ethics 
        shall--
                    ``(A) recommend administrative actions to establish 
                or enforce standards of official conduct;
                    ``(B) refer to the Office of the Inspector General 
                of the Bank alleged violations of--
                            ``(i) the standards of ethical conduct 
                        applicable to employees of the Bank under parts 
                        2635 and 6201 of title 5, Code of Federal 
                        Regulations;
                            ``(ii) the standards of ethical conduct 
                        established by the Chief Ethics Officer; and
                            ``(iii) any other laws, rules, or 
                        regulations governing the performance of 
                        official duties or the discharge of official 
                        responsibilities that are applicable to 
                        employees of the Bank;
                    ``(C) report to appropriate Federal or State 
                authorities substantial evidence of a violation of any 
                law applicable to the performance of official duties 
                that may have been disclosed to the Office of Ethics; 
                and
                    ``(D) render advisory opinions regarding the 
                propriety of any current or proposed conduct of an 
                employee or contractor of the Bank, and issue general 
                guidance on such matters as necessary.''.

SEC. 105. CHIEF RISK OFFICER.

    Section 3 of the Export-Import Bank Act of 1945 (12 U.S.C. 635a), 
as amended by section 104, is further amended by adding at the end the 
following:
    ``(l) Chief Risk Officer.--
            ``(1) In general.--There shall be a Chief Risk Officer of 
        the Bank, who shall--
                    ``(A) oversee all issues relating to risk within 
                the Bank; and
                    ``(B) report to the President of the Bank.
            ``(2) Appointment.--Not later than 180 days after the date 
        of the enactment of the Export-Import Bank Reform and 
        Reauthorization Act of 2015, the Chief Risk Officer shall be--
                    ``(A) appointed by the President of the Bank from 
                among persons--
                            ``(i) with a demonstrated ability in the 
                        general management of, and knowledge of and 
                        extensive practical experience in, financial 
                        risk evaluation practices in large governmental 
                        or business entities; and
                            ``(ii) who are not serving in a position 
                        requiring appointment by the President of the 
                        United States before being appointed to be 
                        Chief Risk Officer; and
                    ``(B) approved by the Board.
            ``(3) Duties.--The duties of the Chief Risk Officer are--
                    ``(A) to be responsible for all matters related to 
                managing and mitigating all risk to which the Bank is 
                exposed, including the programs and operations of the 
                Bank;
                    ``(B) to establish policies and processes for risk 
                oversight, the monitoring of management compliance with 
                risk limits, and the management of risk exposures and 
                risk controls across the Bank;
                    ``(C) to be responsible for the planning and 
                execution of all Bank risk management activities, 
                including policies, reporting, and systems to achieve 
                strategic risk objectives;
                    ``(D) to develop an integrated risk management 
                program that includes identifying, prioritizing, 
                measuring, monitoring, and managing internal control 
                and operating risks and other identified risks;
                    ``(E) to ensure that the process for risk 
                assessment and underwriting for individual transactions 
                considers how each such transaction considers the 
                effect of the transaction on the concentration of 
                exposure in the overall portfolio of the Bank, taking 
                into account fees, collateralization, and historic 
                default rates; and
                    ``(F) to review the adequacy of the use by the Bank 
                of qualitative metrics to assess the risk of default 
                under various scenarios.''.

SEC. 106. RISK MANAGEMENT COMMITTEE.

    (a) In General.--Section 3 of the Export-Import Bank Act of 1945 
(12 U.S.C. 635a), as amended by sections 104 and 105, is further 
amended by adding at the end the following:
    ``(m) Risk Management Committee.--
            ``(1) Establishment.--There is established a management 
        committee to be known as the `Risk Management Committee'.
            ``(2) Membership.--The membership of the Risk Management 
        Committee shall be the members of the Board of Directors, with 
        the President and First Vice President of the Bank serving as 
        ex officio members.
            ``(3) Duties.--The duties of the Risk Management Committee 
        shall be--
                    ``(A) to oversee, in conjunction with the Office of 
                the Chief Financial Officer of the Bank--
                            ``(i) periodic stress testing on the entire 
                        Bank portfolio, reflecting different market, 
                        industry, and macroeconomic scenarios, and 
                        consistent with common practices of commercial 
                        and multilateral development banks; and
                            ``(ii) the monitoring of industry, 
                        geographic, and obligor exposure levels; and
                    ``(B) to review all required reports on the default 
                rate of the Bank before submission to Congress under 
                section 8(g).''.
    (b) Termination of Audit Committee.--Not later than 180 days after 
the date of the enactment of this Act, the Board of Directors of the 
Export-Import Bank of the United States shall revise the bylaws of the 
Bank to terminate the Audit Committee established by section 7 of the 
bylaws.

SEC. 107. INDEPENDENT AUDIT OF BANK PORTFOLIO.

    (a) Audit.--The Inspector General of the Export-Import Bank of the 
United States shall conduct an audit or evaluation of the portfolio 
risk management procedures of the Bank, including a review of the 
implementation by the Bank of the duties assigned to the Chief Risk 
Officer under section 3(l) of the Export-Import Bank Act of 1945, as 
amended by section 105.
    (b) Report.--Not later than one year after the date of the 
enactment of this Act, and not less frequently than every 3 years 
thereafter, the Inspector General 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 written report 
containing all findings and determinations made in carrying out 
subsection (a).

SEC. 108. PILOT PROGRAM FOR REINSURANCE.

    (a) In General.--Notwithstanding any provision of the Export-Import 
Bank Act of 1945 (12 U.S.C. 635 et seq.), the Export-Import Bank of the 
United States (in this section referred to as the ``Bank'') may 
establish a pilot program under which the Bank may enter into contracts 
and other arrangements to share risks associated with the provision of 
guarantees, insurance, or credit, or the participation in the extension 
of credit, by the Bank under that Act.
    (b) Limitations on Amount of Risk-Sharing.--
            (1) Per contract or other arrangement.--The aggregate 
        amount of liability the Bank may transfer through risk-sharing 
        pursuant to a contract or other arrangement entered into under 
        subsection (a) may not exceed $1,000,000,000.
            (2) Per year.--The aggregate amount of liability the Bank 
        may transfer through risk-sharing during a fiscal year pursuant 
        to contracts or other arrangements entered into under 
        subsection (a) during that fiscal year may not exceed 
        $10,000,000,000.
    (c) Annual Reports.--Not later than one year after the date of the 
enactment of this Act, and annually thereafter through 2019, the Bank 
shall submit to Congress a written report that contains a detailed 
analysis of the use of the pilot program carried out under subsection 
(a) during the year preceding the submission of the report.
    (d) Rule of Construction.--Nothing in this section shall be 
construed to affect, impede, or revoke any authority of the Bank.
    (e) Termination.--The pilot program carried out under subsection 
(a) shall terminate on September 30, 2019.

             TITLE II--PROMOTION OF SMALL BUSINESS EXPORTS

SEC. 201. INCREASE IN SMALL BUSINESS LENDING REQUIREMENTS.

    (a) In General.--Section 2(b)(1)(E)(v) of the Export-Import Bank 
Act of 1945 (12 U.S.C. 635(b)(1)(E)(v)) is amended by striking ``20 
percent'' and inserting ``25 percent''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to fiscal year 2016 and each fiscal year thereafter.

SEC. 202. REPORT ON PROGRAMS FOR SMALL AND MEDIUM-SIZED BUSINESSES.

    (a) In General.--Section 8 of the Export-Import Bank Act of 1945 
(12 U.S.C. 635g) is amended by adding at the end the following:
    ``(k) Report on Programs for Small and Medium-Sized Businesses.--
The Bank shall include in its annual report to Congress under 
subsection (a) a report on the programs of the Bank for United States 
businesses with less than $250,000,000 in annual sales.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to the report of the Export-Import Bank of the 
United States submitted to Congress under section 8 of the Export-
Import Bank Act of 1945 (12 U.S.C. 635g) for the first year that begins 
after the date of the enactment of this Act.

                 TITLE III--MODERNIZATION OF OPERATIONS

SEC. 301. ELECTRONIC PAYMENTS AND DOCUMENTS.

    Section 2(b)(1) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635(b)(1)) is amended by adding at the end the following:
    ``(M) Not later than 2 years after the date of the enactment of the 
Export-Import Bank Reform and Reauthorization Act of 2015, the Bank 
shall implement policies--
            ``(i) to accept electronic documents with respect to 
        transactions whenever possible, including copies of bills of 
        lading, certifications, and compliance documents, in such 
        manner so as not to undermine any potential civil or criminal 
        enforcement related to the transactions; and
            ``(ii) to accept electronic payments in all of its 
        programs.''.

SEC. 302. REAUTHORIZATION OF INFORMATION TECHNOLOGY UPDATING.

    Section 3(j) of the Export-Import Act of 1945 (12 U.S.C. 635a(j)) 
is amended--
            (1) in paragraph (1), in the matter preceding subparagraph 
        (A), by striking ``2012, 2013, and 2014'' and inserting ``2015 
        through 2019'';
            (2) in paragraph (2)(B), by striking ``(I) the funds'' and 
        inserting ``(i) the funds''; and
            (3) in paragraph (3), by striking ``2012, 2013, and 2014'' 
        and inserting ``2015 through 2019''.

                      TITLE IV--GENERAL PROVISIONS

SEC. 401. EXTENSION OF AUTHORITY.

    (a) In General.--Section 7 of the Export-Import Bank Act of 1945 
(12 U.S.C. 635f) is amended by striking ``2014'' and inserting 
``2019''.
    (b) Dual-Use Exports.--Section 1(c) of Public Law 103-428 (12 
U.S.C. 635 note) is amended by striking ``September 30, 2014'' and 
inserting ``the date on which the authority of the Export-Import Bank 
of the United States expires under section 7 of the Export-Import Bank 
Act of 1945 (12 U.S.C. 635f)''.
    (c) 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 ``September 30, 2014'' and inserting ``the date on 
which the authority of the Bank expires under section 7''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the earlier of the date of the enactment of this Act or June 
30, 2015.

SEC. 402. CERTAIN UPDATED LOAN TERMS AND AMOUNTS.

    (a) Loan Terms for Medium-Term Financing.--Section 2(a)(2)(A) of 
the Export-Import Bank Act of 1945 (12 U.S.C. 635(a)(2)(A)) is 
amended--
            (1) in clause (i), by striking ``; and'' and inserting a 
        semicolon; and
            (2) by adding at the end the following:
                    ``(iii) with principal amounts of not more than 
                $25,000,000; and''.
    (b) Competitive Opportunities Relating to Insurance.--Section 
2(d)(2) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(d)(2)) is 
amended by striking ``$10,000,000'' and inserting ``$25,000,000''.
    (c) Export Amounts for Small Business Loans.--Section 3(g)(3) of 
the Export-Import Bank Act of 1945 (12 U.S.C. 635a(g)(3)) is amended by 
striking ``$10,000,000'' and inserting ``$25,000,000''.
    (d) Consideration of Environmental Effects.--Section 11(a)(1)(A) of 
the Export-Import Bank Act of 1945 (12 U.S.C. 635i-5(a)(1)(A)) is 
amended by striking ``$10,000,000 or more'' and inserting the 
following: ``$25,000,000 (or, if less than $25,000,000, the threshold 
established pursuant to international agreements, including the Common 
Approaches for Officially Supported Export Credits and Environmental 
and Social Due Diligence, as adopted by the Organisation for Economic 
Co-operation and Development Council on June 28, 2012, and the risk-
management framework adopted by financial institutions for determining, 
assessing, and managing environmental and social risk in projects 
(commonly referred to as the `Equator Principles')) or more''.
    (e) Effective Date.--The amendments made by this section shall 
apply with respect to fiscal year 2016 and each fiscal year thereafter.

                         TITLE V--OTHER MATTERS

SEC. 501. PROHIBITION ON DISCRIMINATION BASED ON INDUSTRY.

    Section 2 of the Export-Import Bank Act of 1945 (6 U.S.C. 635 et 
seq.) is amended by adding at the end the following:
    ``(k) Prohibition on Discrimination Based on Industry.--
            ``(1) In general.--Except as provided in this Act, the Bank 
        may not--
                    ``(A) deny an application for financing based 
                solely on the industry, sector, or business that the 
                application concerns; or
                    ``(B) promulgate or implement policies that 
                discriminate against an application based solely on the 
                industry, sector, or business that the application 
                concerns.
            ``(2) Applicability.--The prohibitions under paragraph (1) 
        apply only to applications for financing by the Bank for 
        projects concerning the exploration, development, production, 
        or export of energy sources and the generation or transmission 
        of electrical power, or combined heat and power, regardless of 
        the energy source involved.''.

SEC. 502. NEGOTIATIONS TO END EXPORT CREDIT FINANCING.

    (a) In General.--Section 11 of the Export-Import Bank 
Reauthorization Act of 2012 (12 U.S.C. 635a-5) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``Secretary of the Treasury (in this section 
                referred to as the `Secretary')'' and inserting 
                ``President''; and
                    (B) in paragraph (1)--
                            (i) by striking ``(OECD)'' and inserting 
                        ``(in this section referred to as the 
                        `OECD')''; and
                            (ii) by striking ``ultimate goal of 
                        eliminating'' and inserting ``possible goal of 
                        eliminating, before the date that is 10 years 
                        after the date of the enactment of the Export-
                        Import Bank Reform and Reauthorization Act of 
                        2015,'';
            (2) in subsection (b), by striking ``Secretary'' each place 
        it appears and inserting ``President''; and
            (3) by adding at the end the following:
    ``(c) Report on Strategy.--Not later than 180 days after the date 
of the enactment of the Export-Import Bank Reform and Reauthorization 
Act of 2015, the President shall submit to Congress a proposal, and a 
strategy for achieving the proposal, that the United States Government 
will pursue with other major exporting countries, including OECD 
members and non-OECD members, to eliminate over a period of not more 
than 10 years subsidized export-financing programs, tied aid, export 
credits, and all other forms of government-supported export subsidies.
    ``(d) Negotiations With Non-OECD Members.--The President shall 
initiate and pursue negotiations with countries that are not OECD 
members to bring those countries into a multilateral agreement 
establishing rules and limitations on officially supported export 
credits.
    ``(e) Annual Reports on Progress of Negotiations.--Not later than 
180 days after the date of the enactment of the Export-Import Bank 
Reform and Reauthorization Act of 2015, and annually thereafter through 
calendar year 2019, the President 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 
progress of any negotiations described in subsection (d).''.
    (b) Effective Date.--The amendments made by paragraphs (1) and (2) 
of subsection (a) shall apply with respect to reports required to be 
submitted under section 11(b) of the Export-Import Bank Reauthorization 
Act of 2012 (12 U.S.C. 635a-5(b)) after the date of the enactment of 
this Act.

SEC. 503. STUDY OF FINANCING FOR INFORMATION AND COMMUNICATIONS 
              TECHNOLOGY SYSTEMS.

    (a) Analysis of Information and Communications Technology 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 companies that export information and communications technology 
services and related goods.
    (b) Elements.--In conducting the study required by subsection (a), 
the Bank shall examine the following:
            (1) The number of jobs in the United States that are 
        supported by the export of information and communications 
        technology services and related goods, and the degree to which 
        access to financing will increase exports of such services and 
        related goods.
            (2) The reduction in the financing by the Bank of exports 
        of information and communications technology services from 2003 
        through 2014.
            (3) The activities of foreign export credit agencies to 
        facilitate the export of information and communications 
        technology services and related goods.
            (4) Specific proposals for how the Bank could provide 
        additional financing for the exportation of information and 
        communications technology services and related goods through 
        risk-sharing with other export credit agencies and other third 
        parties.
            (5) Proposals for new products the Bank could offer to 
        provide financing for exports of information and communications 
        technology services and related goods, 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 new products to meet the 
                needs of the information and communications technology 
                industry;
                    (C) specific proposals for changes in law that 
                would enable the Bank to provide increased financing 
                for exports of information and communications 
                technology services and related goods in compliance 
                with the credit and risk standards of the Bank;
                    (D) specific proposals that would enable the Bank 
                to provide increased outreach to the information and 
                communications technology industry about the products 
                the Bank offers; and
                    (E) specific proposals for changes in law that 
                would enable the Bank to provide the financing to build 
                information and communications technology 
                infrastructure, in compliance with the credit and risk 
                standards of the Bank, to allow for market access 
                opportunities for United States information and 
                communications technology companies to provide services 
                on the infrastructure being financed by the Bank.
    (c) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Bank shall submit to Congress a report that 
contains the results of the study required by subsection (a).
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