the following activities if such activity is under-
taken pursuant to a commitment, or pursuant 
to the exercise of rights under a commitment, 
that was entered into with the government of a 
state sponsor of terrorism or a nongovern-
mental entity in a country that is a state spon-
sor of terrorism: 
‘‘(i) The entry into a contract that in-
cludes responsibility for the development of 
petroleum resources located in a country 
that is a state sponsor of terrorism, or the 
entry into a contract providing for the gen-
eral supervision and guarantee of another 
person’s performance of such a contract. 
‘‘(ii) The purchase of a share of own-
ership, including an equity interest, in that 
development. 
‘‘(iii) The entry into a contract pro-
viding for the participation in royalties, 
earnings, or profits in that development, 
without regard to the form of the partici-
pation. 
‘‘(D) STATE
SPONSOR
OF
TERRORISM.— 
The term ‘state sponsor of terrorism’ means a 
country the government of which the Secretary
of State has determined, for purposes of section 
6(j) of the Export Administration Act of 1979, 
section 620A of the Foreign Assistance Act of 
1961, section 40 of the Arms Export Control 
Act, or any other provision of law, to be a gov-
ernment that has repeatedly provided support 
for acts of international terrorism. 
‘‘(3) CERTIFICATION.— 
‘‘(A) BY APPLICANTS.—A person or entity 
applying for insurance, reinsurance, a guaranty, 
financing, or other assistance under this title 
may not receive such support unless its chief 
executive officer certifies to the Corporation, 
under penalty of perjury, that the person or en-
tity and its majority-owned subsidiaries are not 
engaged in any activity described in subpara-
graph (A) or (B) of paragraph (1). 
‘‘(B) BY ULTIMATE PARENT ENTITIES.— 
In the case of an applicant that is a majority- 
owned entity of another entity, in addition to 
the certification under subparagraph (A), the 
chief executive officer of the ultimate parent en-
tity of the applicant must certify, under penalty 
of perjury, that it and its majority-owned sub-
sidiaries are not engaged in any activity de-
scribed in subparagraph (A) or (B) of para-
graph (1). 
‘‘(C) APPLICATION TO STRAW MAN TRANS-
ACTIONS.—In any case in which— 
‘‘(i) an applicant for insurance, rein-
surance, financing, or other assistance 
under this title is providing goods and 
services to a project, 
‘‘(ii) more than 50 percent of such 
goods and services are acquired from an 
unaffiliated entity, and 
‘‘(iii) the unaffiliated entity is receiv-
ing $20,000,000 or more, or sums greater 
than 50 percent of the amount of the as-
sistance provided by the Corporation for 
the project (including contingent liability), 
for such goods or services, 
then the chief executive officer of the unaffili-
ated entity must make a certification under 
subparagraph (A), and any ultimate parent en-
tity must make a certification required by sub-
paragraph (B). 
‘‘(D) DILIGENT INQUIRY.—A certification 
required by subparagraph (A), (B), or (C) may 
be made to the best knowledge and belief of the
certifying officer if that officer states that he or 
she has made diligent inquiry into the matter 
certified. 
‘‘(E) EXCEPTION.—(i) A chief executive 
officer of an applicant or other entity may pro-
vide a certification required by subparagraph 
(A), (B), or (C) with respect to the activity of 
a majority-owned subsidiary or entity notwith-
standing activity by such majority-owned sub-
sidiary or entity that would cause a project to 
be ineligible for support under subparagraph 
(A) or (B) of paragraph (1) if such activity is 
carried out under a contract or other obligation 
of such majority-owned subsidiary or entity that 
was entered into or incurred before the acquisi-
tion of such majority-owned subsidiary or entity 
by the applicant or ultimate parent entity. 
‘‘(ii) Clause (i) shall not apply if the terms 
of such contract or other obligation are ex-
panded or extended after such acquisition. 
‘‘(F) DEFINITION.—For purposes of this 
paragraph, a person is an ultimate parent of an 
entity if the person owns directly, or through 
majority ownership of other entities, greater 
than 50 percent of the equity of the entity.
‘‘(4) EXCEPTION.—The prohibition in para-
graph (1) shall not— 
‘‘(A) apply to a loan, extension of credit, 
or investment commitment by an applicant, or 
other entity covered by a certification under 
subparagraph (A), (B), or (C) of paragraph (3), 
in Southern Sudan, Southern Kordofan/Nuba 
Mountains State, Blue Nile State, or Abyei, 
Darfur, if the Corporation, with the concur-
rence of the Secretary of State, determines that 
such loan, extension of credit, or investment 
commitment will provide emergency relief, pro-
mote economic self-sufficiency, or implement a 
nonmilitary program in support of a viable 
peace agreement in Sudan, including the Com-
prehensive Peace Agreement for Sudan and the 
Darfur Peace Agreement; or 
‘‘(B) prohibit the Corporation from pro-
viding support for projects in Southern Sudan, 
Southern Kordofan/Nuba Mountains State, 
Blue Nile State, and Abyei, Darfur, if the Cor-
poration, with the concurrence of the Secretary 
of State, determines that such projects will pro-
vide emergency relief, promote economic self- 
sufficiency, or implement a nonmilitary pro-
gram in support of a viable peace agreement in 
Sudan, including the Comprehensive Peace 
Agreement for Sudan and the Darfur Peace 
Agreement. 
‘‘(5) PROSPECTIVE
APPLICATION
OF
SUB-
SECTION.—This subsection shall not be applied to 
limit support by the Corporation under this title be-
cause an applicant, or other entity covered by a cer-
tification under subparagraph (A), (B), or (C) of 
paragraph (3) engaged in commercial activity spe-
cifically licensed by the Office of Foreign Assets 
Control of the Department of the Treasury.’’. 
(b) TERMINATION.— 
(1) IN
GENERAL.—The amendment made by 
this section shall cease to be effective with respect 
to a country that is a state sponsor of terrorism 30 
days after the President certifies to the appropriate 
congressional committees that— 
(A) the country has ceased providing sup-
port for acts of international terrorism and no 
longer satisfies the requirements for designation 
as a state sponsor of terrorism; 
(B) the country does not possess nuclear 
weapons or a significant program to develop nu-
clear weapons; and
(C) the country is not committing genocide 
or conducting a program of ethnic cleansing 
against a civilian population that approaches 
genocide. 
(2) DEFINITIONS.—In this subsection: 
(A) APPROPRIATE
CONGRESSIONAL
COM-
MITTEES.—The term ‘‘appropriate congres-
sional committees’’ means the Committee on 
Foreign Affairs of the House of Representatives 
and the Committee on Foreign Relations of the 
Senate. 
(B) STATE SPONSOR OF TERRORISM.—The 
term ‘‘state sponsor of terrorism’’ has the 
meaning 
given 
that 
term 
in 
section 
237(r)(2)(D) of the Foreign Assistance Act of 
1961, as added by subsection (a) of this sec-
tion. 
SEC. 11. INCREASED TRANSPARENCY. 
(a) IN GENERAL.—Section 237 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2197) is further amended 
by adding at the end the following new subsections: 
‘‘(s) AVAILABILITY OF PROJECT INFORMATION.—Be-
ginning 90 days after the date of the enactment of the 
Overseas Private Investment Corporation Reauthorization 
Act of 2007, the Corporation shall make public, and post
on its Internet website, summaries of all new projects sup-
ported by the Corporation, and other relevant information, 
except that the Corporation shall not include any confiden-
tial business information in the summaries and informa-
tion made available under this subsection. 
‘‘(t) REVIEW OF METHODOLOGY.—Not later than 
180 days after the date of the enactment of the Overseas 
Private Investment Corporation Reauthorization Act of 
2007, the Corporation shall publish in the Federal Reg-
ister and periodically revise, subject to a period of public 
comment, the detailed methodology, including relevant 
regulations, used to assess and monitor the impact of 
projects supported by the Corporation on the development 
and environment of, and international worker rights in, 
host countries, and on United States employment. 
‘‘(u) PUBLIC
NOTICE
PRIOR
TO
PROJECT
AP-
PROVAL.— 
‘‘(1) PUBLIC NOTICE.—The Board of Directors 
of the Corporation may not vote in favor of any ac-
tion proposed to be taken by the Corporation on any 
Category A project until at least 60 days after the 
Corporation— 
‘‘(A) makes available for public comment a 
summary of the project and relevant informa-
tion about the project; and
‘‘(B) makes the summary and information 
described in paragraph (1) available to locally 
affected groups in the area of impact of the 
proposed project, and to host country non-
governmental organizations. 
The Corporation shall not include any business con-
fidential information in the summary and informa-
tion made available under subparagraphs (A) and 
(B). 
‘‘(2) PUBLISHED
RESPONSE.—To the extent 
practicable, the Corporation shall publish responses 
to the comments received under paragraph (1) with 
respect to a Category A project and submit the re-
sponses to the Board not later than 7 days before 
a vote is to be taken on any action proposed by the 
Corporation on the project. 
‘‘(3) DEFINITIONS.—In this subsection, the 
term ‘Category A project’ means any project or 
other activity for which the Corporation proposes to 
provide insurance, reinsurance, financing, or other 
support under this title and which is likely to have 
significant adverse environmental impacts.’’. 
(b) OFFICE OF ACCOUNTABILITY.—Section 237 of 
the Foreign Assistance Act of 1961 (22 U.S.C. 2197) is
further amended by adding at the end the following new 
subsection: 
‘‘(v) OFFICE OF ACCOUNTABILITY.—The Corpora-
tion shall maintain an Office of Accountability to provide 
problem-solving services for projects supported by the Cor-
poration and to review the Corporation’s compliance with 
its environmental, social, worker rights, human rights, and 
transparency policies and procedures, to the maximum ex-
tent practicable. The Office of Accountability shall operate 
in a manner that is fair, objective and transparent.’’. 
SEC. 12. FRAUD AND OTHER BREACHES OF CONTRACT. 
Section 237(n) of the Foreign Assistance Act of 1961 
(22 U.S.C. 2197(n)) is amended— 
(1) by striking ‘‘Whoever’’ and inserting: 
‘‘(1) IN GENERAL.—Whoever’’; and 
(2) by adding at the end the following: 
‘‘(2) DEFERRALS
TO
DEPARTMENT
OF
JUS-
TICE.—(A) The President of the Corporation shall 
refer to the Department of Justice for appropriate 
action information known to the Corporation con-
cerning any substantial evidence of— 
‘‘(i) a violation of this title; 
‘‘(ii) a material breach of contract entered 
into with the Corporation by an eligible inves-
tor; or
‘‘(iii) a material false representation made 
by an investor to the Corporation. 
‘‘(B) Subparagraph (A) does not apply if the 
President of the Corporation concludes that the mat-
ter described in clause (i), (ii), or (iii), as the case 
may be, of subparagraph (A)— 
‘‘(i) is not evidence of a possible violation 
of criminal law; and 
‘‘(ii) is not evidence that the Federal Gov-
ernment is entitled to civil remedy or to impose 
a civil penalty.’’. 
SEC. 13. TRANSPARENCY AND ACCOUNTABILITY OF IN-
VESTMENT FUNDS. 
(a) IN GENERAL.—Section 239 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2199) is amended by adding 
at the end the following: 
‘‘(l) TRANSPARENCY AND ACCOUNTABILITY OF IN-
VESTMENT FUNDS.— 
‘‘(1) COMPETITIVE SELECTION OF INVESTMENT 
FUND MANAGEMENT.—With respect to any invest-
ment fund that the Corporation creates on or after 
the date of the enactment of the Overseas Private 
Investment Corporation Reauthorization Act of 
2007, the Corporation may select persons to manage
the fund only by contract using full and open com-
petitive procedures. 
‘‘(2) CRITERIA FOR SELECTION.—In assessing 
proposals for investment fund management pro-
posals, the Corporation shall consider, in addition to 
other factors, the following: 
‘‘(A) The prospective fund management’s 
experience, depth, and cohesiveness. 
‘‘(B) The prospective fund management’s 
track record in investing risk capital in emerg-
ing markets. 
‘‘(C) The prospective fund management’s 
experience, management record, and monitoring 
capabilities in its target countries, including de-
tails of local presence (directly or through local 
alliances). 
‘‘(D) The prospective fund management’s 
experience as a fiduciary in managing institu-
tional capital, meeting reporting requirements, 
and administration. 
‘‘(E) The prospective fund management’s 
record in avoiding investments in companies 
that would be disqualified under section 237(r). 
‘‘(3) ANNUAL REPORT.—The Corporation shall 
include in each annual report under section 240A an
analysis of the investment fund portfolio of the Cor-
poration, including the following: 
‘‘(A) FUND PERFORMANCE.—An analysis 
of the aggregate financial performance of the 
investment fund portfolio grouped by region 
and maturity. 
‘‘(B) STATUS OF LOAN GUARANTIES.—The 
amount of guaranties committed by the Cor-
poration to support investment funds, including 
the percentage of such amount that has been 
disbursed to the investment funds. 
‘‘(C) RISK
RATINGS.—The definition of 
risk ratings, and the current aggregate risk rat-
ings for the investment fund portfolio, including 
the number of investment funds in each of the 
Corporation’s rating categories. 
‘‘(D) COMPETITIVE SELECTION OF INVEST-
MENT
FUND
MANAGEMENT.—The number of 
proposals received and evaluated for each newly 
established investment fund.’’. 
(b) GAO AUDIT.—Not later than 1 year after the 
submission of the first report to Congress under section 
240A of the Foreign Assistance Act of 1961 that includes 
the information required by section 239(l)(3) of that Act 
(as added by subsection (a) of this section), the Comp-
troller General of the United States shall prepare and sub-
mit to the Committee on Foreign Affairs of the House 
of Representatives and the Committee on Foreign Rela-
tions of the Senate an independent assessment of the in-
vestment fund portfolio of the Overseas Private Invest-
ment Corporation, covering the items required to be ad-
dressed under such section 239(l)(3). 
SEC. 14. EXTENSION OF AUTHORITY TO OPERATE IN IRAQ. 
Section 239 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2199) is amended by adding at the end the 
following: 
‘‘(m) OPERATIONS IN IRAQ.—Notwithstanding sub-
sections (a) and (b) of section 237, the Corporation is au-
thorized to undertake in Iraq any program authorized by 
this title.’’. 
SEC. 15. CONSISTENCY WITH EXISTING LAW. 
Section 239 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2199) is further amended by adding at the 
end the following: 
‘‘(n) CONSISTENCY WITH OTHER LAW.—Section 
620L of this Act shall apply to any insurance, reinsurance, 
guaranty, or other financing issued by the Corporation for 
projects in the West Bank and Gaza to the same extent 
as such section applies to other assistance under this Act.
‘‘(o) LIMITATION ON ASSISTANCE TO GAZA AND THE 
WEST BANK.—The Corporation may not provide insur-
ance, reinsurance, a guaranty, financing, or other assist-
ance to support a project in any part of Gaza or the West 
Bank unless the Secretary of State determines that the 
location for the project is not under the effective control 
of Hamas or any other foreign terrorist organization des-
ignated under section 219 of the Immigration and Nation-
ality Act (8 U.S.C. 1189).’’. 
SEC. 16. CONGRESSIONAL NOTIFICATION REGARDING MAX-
IMUM CONTINGENT LIABILITY. 
Section 239 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2199) is further amended by adding at the 
end the following: 
‘‘(p) CONGRESSIONAL NOTIFICATION OF INCREASE 
IN MAXIMUM CONTINGENT LIABILITY.—The Corporation 
shall notify the Committee on Foreign Affairs of the 
House of Representatives and the Committee on Foreign 
Relations of the Senate not later than 15 days after the 
date on which the Corporation’s maximum contingent li-
ability outstanding at any one time pursuant to insurance 
issued under section 234(a), and the amount of financing 
issued under sections 234(b) and (c), exceeds the previous 
fiscal year’s maximum contingent liability by 25 percent.’’.
SEC. 17. ASSISTANCE FOR SMALL BUSINESSES AND ENTI-
TIES. 
Section 240 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2200) is amended by adding at the end the 
following: 
‘‘(c) RESOURCES
DEDICATED
TO
SMALL
BUSI-
NESSES, COOPERATIVES, AND OTHER SMALL UNITED 
STATES INVESTORS.—The Corporation shall ensure that 
adequate personnel and resources, including senior offi-
cers, are dedicated to assist United States small busi-
nesses, cooperatives, and other small United States inves-
tors in obtaining insurance, reinsurance, financing, and 
other support under this title. The Corporation shall in-
clude, in each annual report under section 240A, the fol-
lowing information with respect to the period covered by 
the report: 
‘‘(1) A description of such personnel and re-
sources. 
‘‘(2) The number of small businesses, coopera-
tives, and other small United States investors that 
received such insurance, reinsurance, financing, and 
other support, and the dollar value of such insur-
ance, reinsurance, financing and other support. 
‘‘(3) A description of the projects for which 
such insurance, reinsurance, financing, and other 
support was provided.’’.
SEC. 18. TECHNICAL CORRECTIONS. 
(a) PILOT EQUITY FINANCE PROGRAM.—Section 234 
of the Foreign Assistance Act of 1961 (22 U.S.C. 2194) 
is amended— 
(1) by striking subsection (g); and 
(2) by redesignating subsection (h) as sub-
section (g). 
(b) TRANSFER AUTHORITY.—Section 235 of the For-
eign Assistance Act of 1961 (22 U.S.C. 2195) is amend-
ed— 
(1) by striking subsection (e); and 
(2) by redesignating subsection (f) as sub-
section (e). 
(c) GUARANTY CONTRACT.—Section 237(j) of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2197(j)) is 
amended by inserting ‘‘insurance, reinsurance, and’’ after 
‘‘Each’’. 
(d) TRANSFER OF PREDECESSOR PROGRAMS AND 
AUTHORITIES.— 
(1) TRANSFER.—Section 239 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2199), as amend-
ed by the preceding provisions of this Act, is amend-
ed— 
(A) by striking subsection (b); and
(B) by redesignating the subsections (c) 
through (p) as subsections (b) through (o), re-
spectively. 
(2) CONFORMING AMENDMENTS.—(A) Section 
237(m)(1) of the Foreign Assistance Act of 1961 
(22 U.S.C. 2197(m)(1)) is amended by striking 
‘‘239(g)’’ and inserting ‘‘239(f)’’. 
(B) Section 240A(a) of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2200A(a)) is amended— 
(i) in paragraph (1), by striking ‘‘239(h)’’ 
and inserting ‘‘239(g)’’; and 
(ii) in paragraph (2)(A), by striking 
‘‘239(i)’’ and inserting ‘‘239(h)’’. 
(C) Section 209(e)(16) of the Admiral James 
W. Nance and Meg Donovan Foreign Relations Au-
thorization Act, Fiscal Years 2000 and 2001 (as en-
acted into law by section 1000(a)(7) of Public Law 
106-113; 31 U.S.C. 1113 note) is amended by strik-
ing ‘‘239(c)’’ and ‘‘2199(c)’’ and inserting ‘‘239(b)’’ 
and ‘‘2199(b)’’, respectively. 
(e) ADDITIONAL CLERICAL AMENDMENTS.—Section 
234(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2194(b)) is amended by striking ‘‘235(a)(2)’’ and insert-
ing ‘‘235(a)(1)’’.
SEC. 19. EFFECTIVE DATE. 
(a) NEW APPLICATIONS.—This Act and the amend-
ments made by this Act shall apply with respect to any 
application for insurance, reinsurance, a guaranty, financ-
ing, or other support under title IV of chapter 2 of part 
I of the Foreign Assistance Act of 1961 if the application 
is received by the Overseas Private Investment Corpora-
tion on or after July 1, 2007, and the application is ap-
proved by the Corporation on or after the date of the en-
actment of this Act. 
(b) EXTENSIONS AND RENEWALS.— 
(1) IN GENERAL.—Subject to paragraph (2), 
this Act and the amendments made by this Act shall 
apply with respect to any extension or renewal of a 
contract or agreement for any such insurance, rein-
surance, guaranty, financing, or support that was 
entered into by the Corporation before the date of 
the enactment of this Act if the extension or renewal 
is approved by the Corporation on or after such date 
of enactment. 
(2) EXCEPTION.—This Act and the amend-
ments made by this Act shall not apply to any exten-
sion or renewal which is substantially identical to an 
extension or renewal formally requested in a detailed
writing filed with the Corporation before July 1, 
2007. 
Passed the House of Representatives July 23, 2007. 
Attest: 
Clerk.
110TH CONGRESS 
1ST SESSION 
H. R. 2798 
AN ACT 
To reauthorize the programs of the Overseas Pri-
vate Investment Corporation, and for other pur-
poses.