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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3938 Engrossed in Senate (ES)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
109th CONGRESS
  2d Session
                                S. 3938

_______________________________________________________________________

                                 AN ACT

 
      To reauthorize the Export-Import Bank of the United States.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Export-Import Bank Reauthorization 
Act of 2006''.

SEC. 2. EXTENSION OF AUTHORITY.

    Section 7 of the Export-Import Bank Act of 1945 (12 U.S.C. 635f) is 
amended by striking ``2006'' and inserting ``2011''.

SEC. 3. 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 ``2006'' and inserting 
``2011''.

SEC. 4. EXTENSION OF AUTHORITY TO PROVIDE FINANCING FOR THE EXPORT OF 
              NONLETHAL DEFENSE ARTICLES OR SERVICES THE PRIMARY END 
              USE OF WHICH WILL BE FOR CIVILIAN PURPOSES.

    Section 1(c) of Public Law 103-428 (12 U.S.C. 635 note; 108 Stat. 
4376) is amended by striking ``2001'' and inserting ``2011''.

SEC. 5. DESIGNATION OF SENSITIVE COMMERCIAL SECTORS AND PRODUCTS.

    Section 2(e) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635(e)) is amended by adding at the end the following new paragraph:
            ``(5) Designation of sensitive commercial sectors and 
        products.--Not later than 120 days after the date of the 
        enactment of this Act, the Export-Import Bank of the United 
        States shall submit a list to the Committee on Banking, 
        Housing, and Urban Affairs of the Senate and the Committee on 
        Financial Services of the House of Representatives, which 
        designates sensitive commercial sectors and products with 
        respect to which the provision of financing support by the Bank 
        is deemed unlikely by the President of the Bank due to the 
        significant potential for a determination that such financing 
        support would result in an adverse economic impact on the 
        United States. The President of the Bank shall review on an 
        annual basis thereafter the list of sensitive commercial 
        sectors and products and the Bank shall submit an updated list 
        to the Committee on Banking, Housing, and Urban Affairs of the 
        Senate and the Committee on Financial Services of the House of 
        Representatives of such sectors and products.''.

SEC. 6. INCREASING EXPORTS BY SMALL BUSINESS.

    (a) In General.--Section 3 of the Export-Import Bank Act of 1945 
(12 U.S.C. 635a) is amended by adding at the end the following:
    ``(f) Small Business Division.--
            ``(1) Establishment.--There is established a Small Business 
        Division (in this subsection referred to as the `Division') 
        within the Bank in order to--
                    ``(A) carry out the provisions of subparagraphs (E) 
                and (I) of section 2(b)(1) relating to outreach, 
                feedback, product improvement, and transaction advocacy 
                for small business concerns;
                    ``(B) advise and seek feedback from small business 
                concerns on the opportunities and benefits for small 
                business concerns in the financing products offered by 
                the Bank, with particular emphasis on conducting 
                outreach, enhancing the tailoring of products to small 
                business needs and increasing loans to small business 
                concerns;
                    ``(C) maintain liaison with the Small Business 
                Administration and other departments and agencies in 
                matters affecting small business concerns; and
                    ``(D) provide oversight of the development, 
                implementation, and operation of technology 
                improvements to strengthen small business outreach, 
                including the technology improvement required by 
                section 2(b)(1)(E)(x).
            ``(2) Management.--The President of the Bank shall appoint 
        an officer, who shall rank not lower than senior vice president 
        and whose sole executive function shall be to manage the 
        Division. The officer shall--
                    ``(A) have substantial recent experience in 
                financing exports by small business concerns; and
                    ``(B) advise the Board, particularly the director 
                appointed under section 3(c)(8)(B) to represent the 
                interests of small business, on matters of interest to, 
                and concern for, small business.
            ``(3) Staff.--
                    ``(A) Dedicated personnel.--The President of the 
                Bank shall ensure that each operating division within 
                the Bank has staff that specializes in processing 
                transactions that primarily benefit small business 
                concerns.
                    ``(B) Responsibilities.--The small business 
                specialists shall be involved in all aspects of 
                processing applications for loans, guarantees, and 
                insurance to support exports by small business 
                concerns, including the approval or disapproval, or 
                staff recommendations of approval or disapproval, as 
                applicable, of such applications. In carrying out these 
                responsibilities, the small business specialists shall 
                consider the unique business requirements of small 
                businesses and shall develop exporter performance 
                criteria tailored to small business exporters.
                    ``(C) Approval authority.--In an effort to maximize 
                the speed and efficiency with which the Bank processes 
                transactions primarily benefitting small business 
                concerns, the small business specialists shall be 
                authorized to approve applications for working capital 
                loans and guarantees, and insurance in accordance with 
                policies and procedures established by the Board.
                    ``(D) Identification.--The Bank shall prominently 
                identify the small business specialists on its website 
                and in promotional material.
                    ``(E) Employee evaluations.--The evaluation of 
                staff designated by the President of the Bank under 
                subparagraph (A), including annual reviews of 
                performance of duties related to transactions in 
                support of exports by small business concerns, and any 
                resulting recommendations for salary adjustments, 
                promotions, and other personnel actions, shall address 
                the criteria established pursuant to subsection 
                (g)(2)(B)(iii) and shall be conducted by the manager of 
                the relevant operating division following consultation 
                with the senior vice president of the Division.
                    ``(F) Staff recommendations.--Staff recommendations 
                of denial or withdrawal for medium-term applications, 
                exporter held multi-buyer policies, single buyer 
                policies, and working capital applications processed by 
                the Bank shall be transmitted to the Senior Vice 
                President of the Division not later than 2 business 
                days before a final decision.
            ``(4) Rule of interpretation.--Nothing in this Act shall be 
        construed to prevent the delegation to the Division of any 
        authority necessary to carry out subparagraphs (E) and (I) of 
        section 2(b)(1).
    ``(g) Small Business Committee.--
            ``(1) Establishment.--There is established a management 
        committee to be known as the `Small Business Committee'.
            ``(2) Purpose and duties.--
                    ``(A) Purpose.--The purpose of the Small Business 
                Committee shall be to coordinate the Bank's initiatives 
                and policies with respect to small business concerns, 
                including the timely processing and underwriting of 
                transactions involving direct exports by small business 
                concerns, and the development and coordination of 
                efforts to implement new or enhanced Bank products and 
                services pertaining to small business concerns.
                    ``(B) Duties.--The duties of the Small Business 
                Committee shall be determined by the President of the 
                Bank and shall include the following:
                            ``(i) Assisting in the development of the 
                        Bank's small business strategic plans, 
                        including the Bank's plans for carrying out 
                        section 2(b)(1)(E) (v) and (x), and measuring 
                        and reporting in writing to the President of 
                        the Bank, at least once a year, on the Bank's 
                        progress in achieving the goals set forth in 
                        the plans.
                            ``(ii) Evaluating and reporting in writing 
                        to the President of the Bank, at least once a 
                        year, with respect to--
                                    ``(I) the performance of each 
                                operating division of the Bank in 
                                serving small business concerns;
                                    ``(II) the impact of processing and 
                                underwriting standards on transactions 
                                involving direct exports by small 
                                business concerns; and
                                    ``(III) the adequacy of the 
                                staffing and resources of the Small 
                                Business Division.
                            ``(iii) Establishing criteria for 
                        evaluating the performance of staff designated 
                        by the President of the Bank under section 
                        3(f)(3)(A).
                            ``(iv) Coordinating with other United 
                        States Government departments and agencies the 
                        provision of services to small business 
                        concerns.
            ``(3) Composition.--
                    ``(A) Chairperson.--The Chairperson of the Small 
                Business Committee shall be the senior vice president 
                of the Small Business Division. The Chairperson shall 
                have the authority to call meetings of the Small 
                Business Committee, set the agenda for Committee 
                meetings, and request policy recommendations from the 
                Committee's members.
                    ``(B) Other members.--Except as otherwise provided 
                in this subsection, the President of the Bank shall 
                determine the composition of the Small Business 
                Committee, and shall appoint or remove the members of 
                the Small Business Committee. In making such 
                appointments, the President of the Bank shall ensure 
                that the Small Business Committee is comprised of--
                            ``(i) the senior managing officers 
                        responsible for underwriting and processing 
                        transactions; and
                            ``(ii) other officers and employees of the 
                        Bank with responsibility for outreach to small 
                        business concerns and underwriting and 
                        processing transactions that involve small 
                        business concerns.
            ``(4) Reporting.--The Chairperson shall provide to the 
        President of the Bank minutes of each meeting of the Small 
        Business Committee, including any recommendations by the 
        Committee or its individual members.''.
    (b) Enhance Delegated Loan Authority for Medium Term 
Transactions.--
            (1) In general.--The Export-Import Bank of the United 
        States shall seek to expand the exercise of authority under 
        section 2(b)(1)(E)(vii) of the Export-Import Bank Act of 1945 
        (6 U.S.C. 635(b)(1)(E)(vii)) with respect to medium term 
        transactions for small business concerns.
            (2) Conforming amendment.--Section 2(b)(1)(E)(vii)(III) of 
        the Export-Import Bank Act of 1945 (12 U.S.C. 
        635(b)(1)(E)(vii)(III)) is amended by inserting ``or other 
        financing institutions or entities'' after ``consortia''.
            (3) Deadline.--Not later than 180 days after the date of 
        the enactment of this Act, the Export-Import Bank of the United 
        States shall make available lines of credit and guarantees to 
        carry out section 2(b)(1)(E)(vii) of the Export-Import Bank Act 
        of 1945 pursuant to policies and procedures established by the 
        Board of Directors of the Export-Import Bank of the United 
        States.

SEC. 7. ANTI-CIRCUMVENTION.

    Section 2(e) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635(e)) is amended--
            (1) by inserting after paragraph (1), the following flush 
        paragraph:
        ``In making the determination under subparagraph (B), the Bank 
        shall determine whether the facility that would benefit from 
        the extension of a credit or guarantee is reasonably likely to 
        produce commodities in addition to or other than the commodity 
        specified in the application and whether the production of the 
        additional commodities may cause substantial injury to United 
        States producers of the same, or a similar or competing, 
        commodity.'';
            (2) in paragraph (2), by adding at the end the following:
                    ``(E) Anti-circumvention.--The Bank shall not 
                provide a loan or guarantee if the Bank determines that 
                providing the loan or guarantee will facilitate 
                circumvention of a trade law order or determination 
                referred to in subparagraph (A).''; and
            (3) by adding at the end the following:
            ``(5) Financial threshold determinations.--For purposes of 
        determining whether a proposed transaction exceeds a financial 
        threshold under this subsection or under the procedures or 
        rules of the Bank, the Bank shall aggregate the dollar amount 
        of the proposed transaction and the dollar amounts of all loans 
        and guarantees, approved by the Bank in the preceding 24-month 
        period, that involved the same foreign entity and substantially 
        the same product to be produced.''.

SEC. 8. TRANSPARENCY.

    (a) In General.--Section 2(e) of the Export-Import Bank Act of 1945 
(12 U.S.C. 635(e)), as amended by section 7 of this Act, is amended by 
adding at the end the following:
            ``(6) Procedures to reduce adverse effects of loans and 
        guarantees on industries and employment in united states.--
                    ``(A) Consideration of economic effects of proposed 
                transactions.--If, in making a determination under this 
                paragraph with respect to a loan or guarantee, the Bank 
                conducts a detailed economic impact analysis or similar 
                study, the analysis or study, as the case may be, shall 
                include consideration of--
                            ``(i) the factors set forth in 
                        subparagraphs (A) and (B) of paragraph (1); and
                            ``(ii) the views of the public and 
                        interested parties.
                    ``(B) Notice and comment requirements.--
                            ``(i) In general.--If, in making a 
                        determination under this subsection with 
                        respect to a loan or guarantee, the Bank 
                        intends to conduct a detailed economic impact 
                        analysis or similar study, the Bank shall 
                        publish in the Federal Register a notice of the 
                        intent, and provide a period of not less than 
                        14 days (which, on request by any affected 
                        party, shall be extended to a period of not 
                        more than 30 days) for the submission to the 
                        Bank of comments on the economic effects of the 
                        provision of the loan or guarantee, including 
                        comments on the factors set forth in 
                        subparagraphs (A) and (B) of paragraph (1). In 
                        addition, the Bank shall seek comments on the 
                        effects from the Department of Commerce, the 
                        International Trade Commission, the Office of 
                        Management and Budget, the Committee on 
                        Banking, Housing, and Urban Affairs of the 
                        Senate, and the Committee on Financial Services 
                        of the House of Representatives.
                            ``(ii) Content of notice.--The notice shall 
                        include appropriate, nonproprietary information 
                        about--
                                    ``(I) the country to which the 
                                goods involved in the transaction will 
                                be shipped;
                                    ``(II) the type of goods being 
                                exported;
                                    ``(III) the amount of the loan or 
                                guarantee involved;
                                    ``(IV) the goods that would be 
                                produced as a result of the provision 
                                of the loan or guarantee;
                                    ``(V) the amount of increased 
                                production that will result from the 
                                transaction;
                                    ``(VI) the potential sales market 
                                for the resulting goods; and
                                    ``(VII) the value of the 
                                transaction.
                            ``(iii) Procedure regarding materially 
                        changed applications.--
                                    ``(I) In general.--If a material 
                                change is made to an application for a 
                                loan or guarantee from the Bank after a 
                                notice with respect to the intent 
                                described in clause (i) is published 
                                under this subparagraph, the Bank shall 
                                publish in the Federal Register a 
                                revised notice of the intent, and shall 
                                provide for a comment period, as 
                                provided in clauses (i) and (ii).
                                    ``(II) Material change defined.--In 
                                subclause (I), the term `material 
                                change', with respect to an 
                                application, includes--
                                            ``(aa) a change of at least 
                                        25 percent in the amount of a 
                                        loan or guarantee requested in 
                                        the application; and
                                            ``(bb) a change in the 
                                        principal product to be 
                                        produced as a result of any 
                                        transaction that would be 
                                        facilitated by the provision of 
                                        the loan or guarantee.
                    ``(C) Requirement to address views of adversely 
                affected persons.--Before taking final action on an 
                application for a loan or guarantee to which this 
                section applies, the staff of the Bank shall provide in 
                writing to the Board of Directors the views of any 
                person who submitted comments pursuant to subparagraph 
                (B).
                    ``(D) Publication of conclusions.--Within 30 days 
                after a party affected by a final decision of the Board 
                of Directors with respect to a loan or guarantee makes 
                a written request therefor, the Bank shall provide to 
                the affected party a non-confidential summary of the 
                facts found and conclusions reached in any detailed 
                economic impact analysis or similar study conducted 
                pursuant to subparagraph (B) with respect to the loan 
                or guarantee, that were submitted to the Board of 
                Directors.
                    ``(E) Rule of interpretation.--This paragraph shall 
                not be construed to make subchapter II of chapter 5 of 
                title 5, United States Code, applicable to the Bank.
                    ``(F) Regulations.--The Bank shall implement such 
                regulations and procedures as may be appropriate to 
                carry out this paragraph.''.
    (b) Conforming Amendment.--Section 2(e)(2)(C) of such Act (12 
U.S.C. 635(e)(2)(C)) is amended by inserting ``of not less than 14 days 
(which, on request of any affected party, shall be extended to a period 
of not more than 30 days)'' after ``comment period''.

SEC. 9. AGGREGATE LOAN, GUARANTEE, AND INSURANCE AUTHORITY.

    Subparagraph (E) of section 6(a)(2) of the Export-Import Bank Act 
of 1945 (12 U.S.C. 635e(a)(2)) is amended to read as follows:
                    ``(E) during fiscal year 2006, and each fiscal year 
                thereafter through fiscal 2011.''.

SEC. 10. TIED AID CREDIT PROGRAM.

    Section 10(b)(5)(B)(ii) of the Export-Import Bank Act of 1945 (12 
U.S.C. 635i-3(b)(5)(B)(ii)) is amended to read as follows:
                            ``(ii) Process.--In handling individual 
                        applications involving the use or potential use 
                        of the Tied Aid Credit Fund the following 
                        process shall exclusively apply pursuant to 
                        subparagraph (A):
                                    ``(I) The Bank shall process an 
                                application for tied aid in accordance 
                                with the principles and standards 
                                developed pursuant to subparagraph (A) 
                                and clause (i) of this subparagraph.
                                    ``(II) Twenty days prior to the 
                                scheduled meeting of the Board of 
                                Directors at which an application will 
                                be considered (unless the Bank 
                                determines that an earlier discussion 
                                is appropriate based on the facts of a 
                                particular financing), the Bank shall 
                                brief the Secretary on the application 
                                and deliver to the Secretary such 
                                documents, information, or data as may 
                                reasonably be necessary to permit the 
                                Secretary to review the application to 
                                determine if the application complies 
                                with the principles and standards 
                                developed pursuant to subparagraph (A) 
                                and clause (i) of subparagraph (B).
                                    ``(III) The Secretary may request a 
                                single postponement of the Board of 
                                Directors' consideration of the 
                                application for up to 14 days to allow 
                                the Secretary to submit to the Board of 
                                Directors a memorandum objecting to the 
                                application.
                                    ``(IV) Case-by-case decisions on 
                                whether to approve the use of the Tied 
                                Aid Credit Fund shall be made by the 
                                Board of Directors, except that the 
                                approval of the Board of Directors (or 
                                a commitment letter based on that 
                                approval) shall not become final 
                                (except as provided in subclause (V)), 
                                if the Secretary indicates to the 
                                President of the Bank in writing the 
                                Secretary's intention to appeal the 
                                decision of the Board of Directors to 
                                the President of the United States and 
                                makes the appeal in writing not later 
                                than 20 days after the meeting at which 
                                the Board of Directors considered the 
                                application.
                                    ``(V) The Bank shall not grant 
                                final approval of an application for 
                                any tied aid credit (or a commitment 
                                letter based on that approval) if the 
                                President of the United States, after 
                                consulting with the President of the 
                                Bank and the Secretary, determines 
                                within 30 days of an appeal by the 
                                Secretary under subclause (IV) that the 
                                extension of the tied aid credit would 
                                materially impede achieving the 
                                purposes described in subsection 
                                (a)(6). If no such Presidential 
                                determination is made during the 30-day 
                                period, the approval by the Bank of the 
                                application (or related commitment 
                                letter) that was the subject of such 
                                appeal shall become final.''.

SEC. 11. PROHIBITION ON ASSISTANCE TO DEVELOP OR PROMOTE CERTAIN 
              RAILWAY CONNECTIONS AND RAILWAY-RELATED CONNECTIONS.

    Section 2(b) of the Export-Import Act of 1945 (12 U.S.C. 635(b)) is 
amended by adding at the end the following new paragraph:
    ``(13) Prohibition on Assistance To Develop or Promote Certain 
Railway Connections and Railway-Related Connections.--The Bank shall 
not guarantee, insure, or extend (or participate in the extension of) 
credit in connection with the export of any good or service relating to 
the development or promotion of any railway connection or railway-
related connection that does not traverse or connect with Armenia and 
does traverse or connect Baku, Azerbaijan, Tbilisi, Georgia, and Kars, 
Turkey.''.

            Passed the Senate September 30 (legislative day, September 
      29), 2006.

            Attest:

                                                             Secretary.
109th CONGRESS

  2d Session

                                S. 3938

_______________________________________________________________________

                                 AN ACT

      To reauthorize the Export-Import Bank of the United States.
```