699 
SEC. 1232. LOCAL IMPACT. 
(a) IN GENERAL.—In making recommendations to the 
President regarding a major disaster declaration, the Ad-
ministrator of the Federal Emergency Management Agency 
shall give greater consideration to severe local impact or 
recent multiple disasters. Further, the Administrator shall 
make corresponding adjustments to the Agency’s policies 
and regulations regarding such consideration. Not later 
than 1 year after the date of enactment of this section, the 
Administrator shall report to the Committee on Transpor-
tation and Infrastructure of the House of Representatives 
and the Committee on Homeland Security and Govern-
mental Affairs of the Senate on the changes made to regula-
tions and policies and the number of declarations that have 
been declared based on the new criteria. 
(b) EFFECTIVE DATE.—This section shall be effective 
on the date of enactment of this Act. 
SEC. 1233. ADDITIONAL HAZARD MITIGATION ACTIVITIES. 
Section 404 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5170c), as 
amended by this division, is further amended by adding 
at the end the following: 
‘‘(g) USE OF ASSISTANCE FOR EARTHQUAKE HAZ-
ARDS.—Recipients of hazard mitigation assistance pro-
vided under this section and section 203 may use the assist-
ance to conduct activities to help reduce the risk of future
700 
damage, hardship, loss, or suffering in any area affected 
by earthquake hazards, including— 
‘‘(1) improvements to regional seismic networks 
in support of building a capability for earthquake 
early warning; 
‘‘(2) improvements to geodetic networks in sup-
port of building a capability for earthquake early 
warning; and 
‘‘(3) improvements to seismometers, Global Posi-
tioning System receivers, and associated infrastruc-
ture in support of building a capability for earth-
quake early warning.’’. 
SEC. 
1234. 
NATIONAL 
PUBLIC 
INFRASTRUCTURE 
PREDISASTER HAZARD MITIGATION. 
(a) PREDISASTER HAZARD MITIGATION.—Section 203 
of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5133) is amended— 
(1) in subsection (c) by inserting ‘‘Public Infra-
structure’’ after ‘‘the National’’; 
(2) in subsection (e)(1)(B)— 
(A) by striking ‘‘or’’ at the end of clause 
(ii); 
(B) by striking the period at the end of 
clause (iii) and inserting ‘‘; or’’; and 
(C) by adding at the end the following:
701 
‘‘(iv) to establish and carry out en-
forcement activities and implement the lat-
est published editions of relevant consensus- 
based codes, specifications, and standards 
that incorporate the latest hazard-resistant 
designs and establish minimum acceptable 
criteria for the design, construction, and 
maintenance of residential structures and 
facilities that may be eligible for assistance 
under this Act for the purpose of protecting 
the health, safety, and general welfare of the 
buildings’ users against disasters.’’; 
(3) in subsection (f)— 
(A) in paragraph (1) by inserting ‘‘for 
mitigation activities that are cost effective’’ after 
‘‘competitive basis’’; and 
(B) by adding at the end the following: 
‘‘(3) 
REDISTRIBUTION
OF
UNOBLIGATED 
AMOUNTS.—The President may— 
‘‘(A) withdraw amounts of financial assist-
ance made available to a State (including 
amounts made available to local governments of 
a State) under this subsection that remain unob-
ligated by the end of the third fiscal year after
702 
the fiscal year for which the amounts were allo-
cated; and 
‘‘(B) in the fiscal year following a fiscal 
year in which amounts were withdrawn under 
subparagraph (A), add the amounts to any other 
amounts available to be awarded on a competi-
tive basis pursuant to paragraph (1).’’; 
(4) in subsection (g)— 
(A) by inserting ‘‘provide financial assist-
ance only in States that have received a major 
disaster declaration in the previous 7 years, or 
to any Indian tribal government located par-
tially or entirely within the boundaries of such 
States, and’’ after ‘‘the President shall’’; 
(B) in paragraph (9) by striking ‘‘and’’ at 
the end; 
(C) by redesignating paragraph (10) as 
paragraph (12); and 
(D) by adding after paragraph (9) the fol-
lowing: 
‘‘(10) the extent to which the State, local, Indian 
tribal, or territorial government has facilitated the 
adoption and enforcement of the latest published edi-
tions of relevant consensus-based codes, specifications, 
and standards, including amendments made by State,
703 
local, Indian tribal, or territorial governments during 
the adoption process that incorporate the latest haz-
ard-resistant designs and establish criteria for the de-
sign, construction, and maintenance of residential 
structures and facilities that may be eligible for as-
sistance under this Act for the purpose of protecting 
the health, safety, and general welfare of the build-
ings’ users against disasters; 
‘‘(11) the extent to which the assistance will fund 
activities that increase the level of resiliency; and’’; 
(5) by striking subsection (i) and inserting the 
following: 
‘‘(i) 
NATIONAL
PUBLIC
INFRASTRUCTURE 
PREDISASTER MITIGATION ASSISTANCE.— 
‘‘(1) IN GENERAL.—The President may set aside 
from the Disaster Relief Fund, with respect to each 
major disaster, an amount equal to 6 percent of the 
estimated aggregate amount of the grants to be made 
pursuant to sections 403, 406, 407, 408, 410, 416, 
and 428 for the major disaster in order to provide 
technical and financial assistance under this section 
and such set aside shall be deemed to be related to ac-
tivities carried out pursuant to major disasters under 
this Act.
704 
‘‘(2) ESTIMATED
AGGREGATE
AMOUNT.—Not 
later than 180 days after each major disaster declara-
tion pursuant to this Act, the estimated aggregate 
amount of grants for purposes of paragraph (1) shall 
be determined by the President and such estimated 
amount need not be reduced, increased, or changed 
due to variations in estimates. 
‘‘(3) NO REDUCTION IN AMOUNTS.—The amount 
set aside pursuant to paragraph (1) shall not reduce 
the amounts otherwise made available for sections 
403, 404, 406, 407, 408, 410, 416, and 428 under this 
Act.’’; and 
(6) by striking subsections (j) and (m); 
(7) by redesignating subsections (k), (l), and (n) 
as subsections (j), (k), and (l), respectively and 
(8) by adding at the end the following: 
‘‘(m) LATEST PUBLISHED EDITIONS.—For purposes of 
subsections (e)(1)(B)(iv) and (g)(10), the term ‘latest pub-
lished editions’ means, with respect to relevant consensus- 
based codes, specifications, and standards, the 2 most re-
cently published editions.’’. 
(b) APPLICABILITY.—The amendments made to section 
203 of the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5133) by paragraphs (3)
706 
Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5133) is amended by striking subsection (m), as 
added by subsection (a)(8) of this section. 
SEC. 1235. ADDITIONAL MITIGATION ACTIVITIES. 
(a) HAZARD MITIGATION CLARIFICATION.—Section 
404(a) of the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5170c(a)) is amended by 
striking the first sentence and inserting the following: ‘‘The 
President may contribute up to 75 percent of the cost of 
hazard mitigation measures which the President has deter-
mined are cost effective and which substantially reduce the 
risk of, or increase resilience to, future damage, hardship, 
loss, or suffering in any area affected by a major disaster.’’. 
(b) ELIGIBLE COST.—Section 406(e)(1)(A) of the Rob-
ert T. Stafford Disaster Relief and Emergency Assistance 
Act (42 U.S.C. 5172(e)(1)(A)) is amended— 
(1) in the matter preceding clause (i), by insert-
ing after ‘‘section,’’ the following: ‘‘for disasters de-
clared on or after August 1, 2017, or a disaster in 
which a cost estimate has not yet been finalized for 
a project, or for any project for which the finalized 
cost estimate is on appeal,’’; 
(2) in clause (i), by striking ‘‘and’’ at the end; 
(3) in clause (ii)—
707 
(A) by striking ‘‘codes, specifications, and 
standards’’ and inserting ‘‘the latest published 
editions of relevant consensus-based codes, speci-
fications, and standards that incorporate the lat-
est hazard-resistant designs and establish min-
imum acceptable criteria for the design, con-
struction, and maintenance of residential struc-
tures and facilities that may be eligible for as-
sistance under this Act for the purposes of pro-
tecting the health, safety, and general welfare of 
a facility’s users against disasters’’; 
(B) by striking ‘‘applicable at the time at 
which the disaster occurred’’; and 
(C) by striking the period at the end and 
inserting ‘‘; and’’; and 
(4) by adding at the end the following: 
‘‘(iii) in a manner that allows the fa-
cility to meet the definition of resilient de-
veloped pursuant to this subsection.’’. 
(c) OTHER ELIGIBLE COST.—Section 406(e)(1) of the 
Robert T. Stafford Disaster Relief and Emergency Assist-
ance Act (42 U.S.C. 5172(e)(1)) is further amended by add-
ing at the end the following: 
‘‘(C) CONTRIBUTIONS.—Contributions for 
the eligible cost made under this section may be
708 
provided on an actual cost basis or on cost-esti-
mation procedures.’’. 
(d) NEW RULES.—Section 406(e) of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5172(e)) is further amended by adding at the end 
the following: 
‘‘(5) NEW RULES.— 
‘‘(A) IN
GENERAL.—Not later than 18 
months after the date of enactment of this para-
graph, the President, acting through the Admin-
istrator of the Federal Emergency Management 
Agency, and in consultation with the heads of 
relevant Federal departments and agencies, shall 
issue a final rulemaking that defines the terms 
‘resilient’ and ‘resiliency’ for purposes of this 
subsection. 
‘‘(B) INTERIM GUIDANCE.—Not later than 
60 days after the date of enactment of this para-
graph, the Administrator shall issue interim 
guidance to implement this subsection. Such in-
terim guidance shall expire 18 months after the 
date of enactment of this paragraph or upon 
issuance of final regulations pursuant to sub-
paragraph (A), whichever occurs first.
709 
‘‘(C) GUIDANCE.—Not later than 90 days 
after the date on which the Administrator issues 
the final rulemaking under this paragraph, the 
Administrator shall issue any necessary guid-
ance related to the rulemaking. 
‘‘(D) REPORT.—Not later than 2 years after 
the date of enactment of this paragraph, the Ad-
ministrator shall submit to Congress a report 
summarizing the regulations and guidance 
issued pursuant to this paragraph.’’. 
(e) CONFORMING AMENDMENT.—Section 205(d)(2) of 
the Disaster Mitigation Act of 2000 (42 U.S.C. 5172 note) 
is amended by inserting ‘‘(B)’’ after ‘‘except that paragraph 
(1)’’. 
SEC. 1236. GUIDANCE AND TRAINING BY FEMA ON COORDI-
NATION OF EMERGENCY RESPONSE PLANS. 
(a) TRAINING REQUIREMENT.—The Administrator, in 
coordination with other relevant agencies, shall provide 
guidance and training on an annual basis to State, local, 
and Indian tribal governments, first responders, and facili-
ties that store hazardous materials on coordination of emer-
gency response plans in the event of a major disaster or 
emergency, including severe weather events. The guidance 
and training shall include the following:
710 
(1) Providing a list of equipment required in the 
event a hazardous substance is released into the envi-
ronment. 
(2) Outlining the health risks associated with ex-
posure to hazardous substances to improve treatment 
response. 
(3) Publishing best practices for mitigating fur-
ther danger to communities from hazardous sub-
stances. 
(b) IMPLEMENTATION.—The requirement of subsection 
(a) shall be implemented not later than 180 days after the 
date of enactment of this Act. 
SEC. 1237. CERTAIN RECOUPMENT PROHIBITED. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, the Agency shall deem any covered disaster as-
sistance to have been properly procured, provided, and uti-
lized, and shall restore any funding of covered disaster as-
sistance previously provided but subsequently withdrawn or 
deobligated. 
(b) COVERED DISASTER ASSISTANCE DEFINED.—In 
this section, the term ‘‘covered disaster assistance’’ means 
assistance— 
(1) provided to a local government pursuant to 
section 403, 406, or 407 of the Robert T. Stafford Dis-
711 
aster Relief and Emergency Assistance Act (42 U.S.C. 
5170b, 5172, or 5173); and 
(2) with respect to which the inspector general of 
the Department of Homeland Security has deter-
mined, after an audit, that— 
(A) the Agency deployed to the local govern-
ment a Technical Assistance Contractor to re-
view field operations, provide eligibility advice, 
and assist with day-to-day decisions; 
(B) the Technical Assistance Contractor 
provided inaccurate information to the local gov-
ernment; and 
(C) the local government relied on the inac-
curate information to determine that relevant 
contracts were eligible, reasonable, and reimburs-
able. 
(c) EFFECTIVE DATE.—This section shall be effective 
on the date of enactment of this Act. 
SEC. 1238. FEDERAL ASSISTANCE TO INDIVIDUALS AND 
HOUSEHOLDS AND NONPROFIT FACILITIES. 
(a) CRITICAL DOCUMENT FEE WAIVER.— 
(1) IN GENERAL.—Notwithstanding section 1 of 
the Passport Act of June 4, 1920 (22 U.S.C. 214) or 
any other provision of law, the President, in consulta-
tion with the Governor of a State, may provide a
712 
waiver under this subsection to an individual or 
household described in section 408(e)(1) of the Robert 
T. Stafford Disaster Relief and Emergency Assistance 
Act (42 U.S.C. 5174(e)(1)) for the following document 
replacement fees: 
(A) The passport application fee for indi-
viduals who lost their United States passport in 
a major disaster within the preceding three cal-
endar years. 
(B) The file search fee for a United States 
passport. 
(C) The Application for Waiver of Passport 
and/or Visa form (Form I–193) fee. 
(D) The Permanent Resident Card replace-
ment form (Form I–90) filing fee. 
(E) The Declaration of Intention form 
(Form N–300) filing fee. 
(F) The Naturalization/Citizenship Docu-
ment replacement form (Form N–565) filing fee. 
(G) The Employment Authorization form 
(Form I–765) filing fee. 
(H) The biometric service fee. 
(2) EXEMPTION
FROM
FORM
REQUIREMENT.— 
The authority of the President to waive fees under 
subparagraphs (C) through (H) of paragraph (1) ap-
713 
plies regardless of whether the individual or household 
qualifies for a Form I–912 Request for Fee Waiver, 
or any successor thereto. 
(3) EXEMPTION FROM ASSISTANCE MAXIMUM.— 
The assistance limit in section 408(h) of the Robert 
T. Stafford Disaster Relief and Emergency Assistance 
Act (42 U.S.C. 5174(h)) shall not apply to any fee 
waived under this subsection. 
(4) REPORT.—Not later than 365 days after the 
date of enactment of this subsection, the Adminis-
trator and the head of any other agency given critical 
document fee waiver authority under this subsection 
shall submit a report to the Committee on Homeland 
Security and Governmental Affairs of the Senate and 
the Committee on Transportation and Infrastructure 
of the House of Representatives on the costs associated 
with providing critical document fee waivers as de-
scribed in paragraph (1). 
(b) FEDERAL ASSISTANCE TO PRIVATE NONPROFIT 
CHILDCARE FACILITIES.—Section 102(11)(A) of the Robert 
T. Stafford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5122(11)(A)) is amended— 
(1) in the second subparagraph (A) (as added by 
Public Law 115–123), by inserting ‘‘center-based 
childcare,’’ after ‘‘facility),’’; and
714 
(2) in the first subparagraph (A), by striking 
‘‘(A) IN GENERAL.—The term ‘private nonprofit facil-
ity’ means private nonprofit educational, utility’’ and 
all that follows through ‘‘President.’’. 
(c) APPLICABILITY.—The amendment made by sub-
section (b)(1) shall apply to any major disaster or emer-
gency declared by the President under section 401 or 501, 
respectively, of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5170, 5191) on or 
after the date of enactment of this Act. 
SEC. 1239. COST OF ASSISTANCE ESTIMATES. 
(a) IN GENERAL.—Not later than 270 days after the 
date of enactment of this Act, the Administrator shall re-
view the factors considered when evaluating a request for 
a major disaster declaration under the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 
5121 et seq.), specifically the estimated cost of the assist-
ance, and provide a report and briefing to the Committee 
on Homeland Security and Governmental Affairs of the 
Senate and the Committee on Transportation and Infra-
structure of the House of Representatives. 
(b) RULEMAKING.—Not later than 2 years after the 
date of enactment of this Act, the Administrator shall re-
view and initiate a rulemaking to update the factors consid-
ered when evaluating a Governor’s request for a major dis-
715 
aster declaration, including reviewing how the Agency esti-
mates the cost of major disaster assistance, and consider 
other impacts on the capacity of a jurisdiction to respond 
to disasters. In determining the capacity of a jurisdiction 
to respond to disasters, and prior to the issuance of such 
a rule, the Administrator shall engage in meaningful con-
sultation with relevant representatives of State, regional, 
local, and Indian tribal government stakeholders. 
SEC. 1240. REPORT ON INSURANCE SHORTFALLS. 
Not later than 2 years after the date of enactment of 
this section, and each year thereafter until 2023, the Ad-
ministrator of the Federal Emergency Management Agency 
shall submit a report to Congress on the number of instances 
and the estimated amounts involved, by State, for cases in 
which self-insurance amounts have been insufficient to ad-
dress flood damages. 
SEC. 1241. POST DISASTER BUILDING SAFETY ASSESSMENT. 
(a) BUILDING SAFETY ASSESSMENT TEAM.— 
(1) IN GENERAL.—The Administrator shall co-
ordinate with State and local governments and orga-
nizations representing design professionals, such as 
architects and engineers, to develop guidance, includ-
ing best practices, for post-disaster assessment of 
buildings by licensed architects and engineers to en-
sure the design professionals properly analyze the
716 
structural integrity and livability of buildings and 
structures. 
(2) PUBLICATION.—The Administrator shall 
publish the guidance required to be developed under 
paragraph (1) not later than 1 year after the date of 
enactment of this Act. 
(b) NATIONAL INCIDENT MANAGEMENT SYSTEM.—The 
Administrator shall revise or issue guidance as required to 
the National Incident Management System Resource Man-
agement component to ensure the functions of post-disaster 
building safety assessment, such as those functions per-
formed by design professionals are accurately resource typed 
within the National Incident Management System. 
(c) EFFECTIVE DATE.—This section shall be effective 
on the date of enactment of this Act. 
SEC. 1242. FEMA UPDATES ON NATIONAL PREPAREDNESS 
ASSESSMENT. 
Not later than 6 months after the date of enactment 
of this Act, and every 6 months thereafter until completion, 
the Administrator shall submit to the Committee on Home-
land Security and Governmental Affairs of the Senate and 
the Committees on Transportation and Infrastructure and 
Homeland Security of the House of Representatives an up-
date on the progress of the Agency in completing action 6 
with respect to the report published by the Government Ac-
717 
countability Office entitled ‘‘2012 Annual Report: Opportu-
nities to Reduce Duplication, Overlap and Fragmentation, 
Achieve Savings, and Enhance Revenue’’ (February 28, 
2012), which recommends the Agency to— 
(1) complete a national preparedness assessment 
of capability gaps at each level based on tiered, capa-
bility-specific 
performance 
objectives 
to 
enable 
prioritization of grant funding; and 
(2) identify the potential costs for establishing 
and maintaining those capabilities at each level and 
determine what capabilities Federal agencies should 
provide. 
SEC. 1243. FEMA REPORT ON DUPLICATION IN NON-NAT-
URAL DISASTER PREPAREDNESS GRANT PRO-
GRAMS. 
Not later than 180 days after the date of enactment 
of this Act, the Administrator shall submit to the Commit-
tees on Homeland Security and Governmental Affairs of the 
Senate and the Committees on Transportation and Infra-
structure and Homeland Security of the House of Rep-
resentatives a report on the results of the efforts of the Agen-
cy to identify and prevent unnecessary duplication within 
and across the non-natural disaster preparedness grant pro-
grams of the Agency, as recommended in the report pub-
lished by the Government Accountability Office entitled
718 
‘‘2012 Annual Report: Opportunities to Reduce Duplica-
tion, Overlap and Fragmentation, Achieve Savings, and 
Enhance Revenue’’ (February 28, 2012), including with re-
spect to— 
(1) the Urban Area Security Initiative estab-
lished under section 2003 of the Homeland Security 
Act of 2002 (6 U.S.C. 604); 
(2) the Port Security Grant Program authorized 
under section 70107 of title 46, United States Code; 
(3) the State Homeland Security Grant Program 
established under section 2004 of the Homeland Secu-
rity Act of 2002 (6 U.S.C. 605); and 
(4) the Transit Security Grant Program author-
ized under titles XIV and XV of the Implementing 
Recommendations of the 9/11 Commission Act of 2007 
(6 U.S.C. 1131 et seq.). 
SEC. 1244. STUDY AND REPORT. 
(a) IN GENERAL.—Not later than 90 days after the 
date of enactment of this Act, the Administrator shall enter 
into a contract with the National Academy of Medicine to 
conduct a study and prepare a report as described in sub-
section (b). 
(b) STUDY AND REPORT.— 
(1) STUDY.—
719 
(A) IN GENERAL.—The study described in 
this subsection shall be a study of matters con-
cerning best practices in mortality counts as a 
result of a major disaster (as defined in section 
102 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5122)). 
(B) CONTENTS.—The study described in 
this subsection shall address approaches to quan-
tifying mortality and significant morbidity 
among populations affected by major disasters, 
which shall include best practices and policy rec-
ommendations for— 
(i) equitable and timely attribution, in 
order to facilitate access to available bene-
fits, among other things; 
(ii) timely prospective tracking of pop-
ulation levels of mortality and significant 
morbidity, and their causes, in order to 
continuously inform response efforts; and 
(iii) a retrospective study of disaster- 
related mortality and significant morbidity 
to inform after-action analysis and improve 
subsequent preparedness efforts. 
(2) REPORT.—Not later than 2 years after the 
date on which the contract described in subsection (a)
720 
is entered into, the National Academy of Medicine 
shall complete and transmit to the Administrator a 
report on the study described in paragraph (1). 
(c) NO ADDITIONAL FUNDS AUTHORIZED.—No addi-
tional funds are authorized to carry out the requirements 
of this section. 
SEC. 1245. REVIEW OF ASSISTANCE FOR DAMAGED UNDER-
GROUND WATER INFRASTRUCTURE. 
(a) DEFINITION OF PUBLIC ASSISTANCE GRANT PRO-
GRAM.—The term ‘‘public assistance grant program’’ means 
the public assistance grant program authorized under sec-
tions 403, 406, 407, 428, and 502(a) of the Robert T. Staf-
ford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5170b, 5172, 5173, 5192(a)). 
(b) REVIEW AND BRIEFING.—Not later than 60 days 
after the date of enactment of this Act, the Administrator 
shall— 
(1) conduct a review of the assessment and eligi-
bility process under the public assistance grant pro-
gram with respect to assistance provided for damaged 
underground water infrastructure as a result of a 
major disaster declared under section 401 of such Act 
(42 U.S.C. 5170), including wildfires, and shall in-
clude the extent to which local technical memoranda, 
prepared by a local unit of government in consulta-
721 
tion with the relevant State or Federal agencies, iden-
tified damaged underground water infrastructure that 
should be eligible for the public assistance grant pro-
gram; and 
(2) provide to the Committee on Homeland Secu-
rity and Governmental Affairs of the Senate and the 
Committee on Transportation and Infrastructure of 
the House of Representatives a briefing on the review 
conducted under paragraph (1). 
(c) REPORT AND RECOMMENDATIONS.—The Adminis-
trator shall— 
(1) not later than 180 days after the date of en-
actment of this Act, issue a report on the review con-
ducted under subsection (b)(1); and 
(2) not later than 180 days after the date on 
which the Administrator issues the report required 
under paragraph (1), initiate a rulemaking, if appro-
priate, to address any recommendations contained in 
the report. 
SEC. 1246. EXTENSION. 
The Administrator shall extend the deadlines to imple-
ment the reasonable and prudent alternative outlined in the 
jeopardy biological opinion dated April 14, 2016, by up to 
3 years from the date of enactment of this Act. Within 18 
months from the date of enactment of this Act, the Adminis-
722 
trator shall submit to the Committee on Homeland Security 
and Governmental Affairs, the Committee on Banking, 
Housing, and Urban Affairs, and the Committee on Envi-
ronment and Public Works of the Senate; and the Com-
mittee on Homeland Security, the Committee on Natural 
Resources, and the Committee on Transportation and In-
frastructure of the House of Representatives a report on the 
status of implementing these reasonable and prudent alter-
natives. 
DIVISION E—CONCRETE 
MASONRY 
SEC. 1301. SHORT TITLE. 
This division may be cited as the ‘‘Concrete Masonry 
Products Research, Education, and Promotion Act of 
2018’’. 
SEC. 1302. DECLARATION OF POLICY. 
(a) PURPOSE.—The purpose of this division is to au-
thorize the establishment of an orderly program for devel-
oping, financing, and carrying out an effective, continuous, 
and coordinated program of research, education, and pro-
motion, including funds for marketing and market research 
activities, that is designed to— 
(1) strengthen the position of the concrete ma-
sonry products industry in the domestic marketplace;
723 
(2) maintain, develop, and expand markets and 
uses for concrete masonry products in the domestic 
marketplace; and 
(3) promote the use of concrete masonry products 
in construction and building. 
(b) LIMITATION.—Nothing in this division may be 
construed to provide for the control of production or other-
wise limit the right of any person to manufacture concrete 
masonry products. 
SEC. 1303. DEFINITIONS. 
For the purposes of this division: 
(1) BLOCK
MACHINE.—The term ‘‘block ma-
chine’’ means a piece of equipment that utilizes vibra-
tion and compaction to form concrete masonry prod-
ucts. 
(2) BOARD.—The term ‘‘Board’’ means the Con-
crete Masonry Products Board established under sec-
tion 1305. 
(3) CAVITY.—The term ‘‘cavity’’ means the open 
space in the mold of a block machine capable of form-
ing a single concrete masonry unit having nominal 
plan dimensions of 8 inches by 16 inches. 
(4) CONCRETE MASONRY PRODUCTS.—The term 
‘‘concrete masonry products’’ refers to a broader class 
of products, including concrete masonry units as well
724 
as hardscape products such as concrete pavers and 
segmental retaining wall units, manufactured on a 
block machine using dry-cast concrete. 
(5) CONCRETE MASONRY UNIT.—The term ‘‘con-
crete masonry unit’’— 
(A) means a concrete masonry product that 
is a manmade masonry unit having an actual 
width of 3 inches or greater and manufactured 
from dry-cast concrete using a block machine; 
and 
(B) includes concrete block and related con-
crete units used in masonry applications. 
(6) CONFLICT OF INTEREST.—The term ‘‘conflict 
of interest’’ means, with respect to a member or em-
ployee of the Board, a situation in which such mem-
ber or employee has a direct or indirect financial or 
other interest in a person that performs a service for, 
or enters into a contract with, for anything of eco-
nomic value. 
(7) DEPARTMENT.—The term ‘‘Department’’ 
means the Department of Commerce. 
(8) DRY-CAST CONCRETE.—The term ‘‘dry-cast 
concrete’’ means a composite material that is com-
posed essentially of aggregates embedded in a binding 
medium composed of a mixture of cementitious mate-
725 
rials (including hydraulic cement, pozzolans, or other 
cementitious materials) and water of such a consist-
ency to maintain its shape after forming in a block 
machine. 
(9) EDUCATION.—The term ‘‘education’’ means 
programs that will educate or communicate the bene-
fits of concrete masonry products in safe and environ-
mentally sustainable development, advancements in 
concrete masonry product technology and develop-
ment, and other information and programs designed 
to generate increased demand for commercial, residen-
tial, multifamily, and institutional projects using 
concrete masonry products and to generally enhance 
the image of concrete masonry products. 
(10) MACHINE
CAVITIES.—The term ‘‘machine 
cavities’’ means the cavities with which a block ma-
chine could be equipped. 
(11) MACHINE
CAVITIES
IN
OPERATION.—The 
term ‘‘machine cavities in operation’’ means those 
machine cavities associated with a block machine that 
have produced concrete masonry units within the last 
6 months of the date set for determining eligibility 
and is fully operable and capable of producing con-
crete masonry units.
726 
(12) MANUFACTURER.—The term ‘‘manufac-
turer’’ means any person engaged in the manufac-
turing of commercial concrete masonry products in 
the United States. 
(13) MASONRY UNIT.—The term ‘‘masonry unit’’ 
means a noncombustible building product intended to 
be laid by hand or joined using mortar, grout, surface 
bonding, post-tensioning or some combination of these 
methods. 
(14) ORDER.—The term ‘‘order’’ means an order 
issued under section 1304. 
(15) PERSON.—The term ‘‘person’’ means any 
individual, group of individuals, partnership, cor-
poration, association, cooperative, or any other entity. 
(16) PROMOTION.—The term ‘‘promotion’’ means 
any action, including paid advertising, to advance 
the image and desirability of concrete masonry prod-
ucts with the express intent of improving the competi-
tive position and stimulating sales of concrete ma-
sonry products in the marketplace. 
(17) RESEARCH.—The term ‘‘research’’ means 
studies testing the effectiveness of market development 
and promotion efforts, studies relating to the improve-
ment of concrete masonry products and new product
727 
development, and studies documenting the perform-
ance of concrete masonry. 
(18) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Commerce. 
(19) 
UNITED
STATES.—The 
term 
‘‘United 
States’’ means the several States and the District of 
Columbia. 
SEC. 1304. ISSUANCE OF ORDERS. 
(a) IN GENERAL.— 
(1) ISSUANCE.—The Secretary, subject to the 
procedures provided in subsection (b), shall issue or-
ders under this division applicable to manufacturers 
of concrete masonry products. 
(2) SCOPE.—Any order shall be national in 
scope. 
(3) ONE ORDER.—Not more than 1 order shall be 
in effect at any one time. 
(b) PROCEDURES.— 
(1) DEVELOPMENT OR RECEIPT OF PROPOSED 
ORDER.—A proposed order with respect to the generic 
research, education, and promotion with regards to 
concrete masonry products may be— 
(A) proposed by the Secretary at any time; 
or
728 
(B) requested by or submitted to the Sec-
retary by— 
(i) an existing national organization 
of concrete masonry product manufacturers; 
or 
(ii) any person that may be affected by 
the issuance of an order. 
(2) PUBLICATION OF PROPOSED ORDER.—If the 
Secretary determines that a proposed order received 
in accordance with paragraph (1)(B) is consistent 
with and will effectuate the purpose of this division, 
the Secretary shall publish such proposed order in the 
Federal Register not later than 90 days after receiv-
ing the order, and give not less than 30 days notice 
and opportunity for public comment on the proposed 
order. 
(3) ISSUANCE OF ORDER.— 
(A) IN GENERAL.—After notice and oppor-
tunity for public comment are provided in ac-
cordance with paragraph (2), the Secretary shall 
issue the order, taking into consideration the 
comments received and including in the order 
such provisions as are necessary to ensure that 
the order is in conformity with this division.
729 
(B) EFFECTIVE DATE.—If there is an af-
firmative vote in a referendum as provided in 
section 1307, the Secretary shall issue the order 
and such order shall be effective not later than 
140 days after publication of the proposed order. 
(c) AMENDMENTS.—The Secretary may, from time to 
time, amend an order. The provisions of this division appli-
cable to an order shall be applicable to any amendment to 
an order. 
SEC. 1305. REQUIRED TERMS IN ORDERS. 
(a) IN GENERAL.—Any order issued under this divi-
sion shall contain the terms and provisions specified in this 
section. 
(b) CONCRETE MASONRY PRODUCTS BOARD.— 
(1) ESTABLISHMENT AND MEMBERSHIP.— 
(A) ESTABLISHMENT.—The order shall pro-
vide for the establishment of a Concrete Masonry 
Products Board to carry out a program of ge-
neric promotion, research, and education regard-
ing concrete masonry products. 
(B) MEMBERSHIP.— 
(i) NUMBER OF MEMBERS.—The Board 
shall consist of not fewer than 15 and not 
more than 25 members.
730 
(ii) APPOINTMENT.—The members of 
the Board shall be appointed by the Sec-
retary from nominations submitted as pro-
vided in the order. 
(iii) COMPOSITION.—The Board shall 
consist of manufacturers. No employee of an 
industry trade organization exempt from 
tax under paragraph (3) or (6) of section 
501(c) of the Internal Revenue Code of 1986 
representing the concrete masonry industry 
or related industries shall serve as a mem-
ber of the Board and no member of the 
Board may serve concurrently as an officer 
of the board of directors of a national con-
crete masonry products industry trade asso-
ciation. Only 2 individuals from any single 
company or its affiliates may serve on the 
Board at any one time. 
(2) DISTRIBUTION OF APPOINTMENTS.— 
(A) REPRESENTATION.—To ensure fair and 
equitable representation of the concrete masonry 
products industry, the composition of the Board 
shall reflect the geographical distribution of the 
manufacture of concrete masonry products in the 
United States, the types of concrete masonry
731 
products manufactured, and the range in size of 
manufacturers in the United States. 
(B) ADJUSTMENT IN BOARD REPRESENTA-
TION.—Three years after the assessment of con-
crete masonry products commences pursuant to 
an order, and at the end of each 3-year period 
thereafter, the Board, subject to the review and 
approval of the Secretary, shall, if warranted, 
recommend to the Secretary the reapportionment 
of the Board membership to reflect changes in the 
geographical distribution of the manufacture of 
concrete masonry products and the types of con-
crete masonry products manufactured. 
(3) NOMINATIONS PROCESS.—The Secretary may 
make appointments from nominations by manufac-
turers pursuant to the method set forth in the order. 
(4) FAILURE TO APPOINT.—If the Secretary fails 
to make an appointment to the Board within 60 days 
of receiving nominations for such appointment, the 
first nominee for such appointment shall be deemed 
appointed, unless the Secretary provides reasonable 
justification for the delay to the Board and to Con-
gress and provides a reasonable date by which ap-
proval or disapproval will be made.
732 
(5) ALTERNATES.—The order shall provide for 
the selection of alternate members of the Board by the 
Secretary in accordance with procedures specified in 
the order. 
(6) TERMS.— 
(A) IN GENERAL.—The members and any 
alternates of the Board shall each serve for a 
term of 3 years, except that members and any al-
ternates initially appointed to the Board shall 
serve for terms of not more than 2, 3, and 4 
years, as specified by the order. 
(B) LIMITATION ON CONSECUTIVE TERMS.— 
A member or an alternate may serve not more 
than 2 consecutive terms. 
(C) CONTINUATION
OF
TERM.—Notwith-
standing subparagraph (B), each member or al-
ternate shall continue to serve until a successor 
is appointed by the Secretary. 
(D) VACANCIES.—A vacancy arising before 
the expiration of a term of office of an incum-
bent member or alternate of the Board shall be 
filled in a manner provided for in the order. 
(7) DISQUALIFICATION FROM BOARD SERVICE.— 
The order shall provide that if a member or alternate 
of the Board who was appointed as a manufacturer
733 
ceases to qualify as a manufacturer, such member or 
alternate shall be disqualified from serving on the 
Board. 
(8) COMPENSATION.— 
(A) IN GENERAL.—Members and any alter-
nates of the Board shall serve without compensa-
tion. 
(B) TRAVEL EXPENSES.—If approved by the 
Board, members or alternates shall be reimbursed 
for reasonable travel expenses, which may in-
clude per diem allowance or actual subsistence 
incurred while away from their homes or regular 
places of business in the performance of services 
for the Board. 
(c) POWERS AND DUTIES OF THE BOARD.—The order 
shall specify the powers and duties of the Board, including 
the power and duty— 
(1) to administer the order in accordance with 
its terms and conditions and to collect assessments; 
(2) to develop and recommend to the Secretary 
for approval such bylaws as may be necessary for the 
functioning of the Board and such rules as may be 
necessary to administer the order, including activities 
authorized to be carried out under the order;
734 
(3) to meet, organize, and select from among 
members of the Board a chairperson, other officers, 
and committees and subcommittees, as the Board de-
termines appropriate; 
(4) to establish regional organizations or com-
mittees to administer regional initiatives; 
(5) to establish working committees of persons 
other than Board members; 
(6) to employ such persons, other than the mem-
bers, as the Board considers necessary, and to deter-
mine the compensation and specify the duties of the 
persons; 
(7) to prepare and submit for the approval of the 
Secretary, before the beginning of each fiscal year, 
rates of assessment under section 1306 and an annual 
budget of the anticipated expenses to be incurred in 
the administration of the order, including the prob-
able cost of each promotion, research, and information 
activity proposed to be developed or carried out by the 
Board; 
(8) to borrow funds necessary for the startup ex-
penses of the order; 
(9) to carry out generic research, education, and 
promotion programs and projects relating to concrete 
masonry products, and to pay the costs of such pro-
735 
grams and projects with assessments collected under 
section 1306; 
(10) subject to subsection (e), to enter into con-
tracts or agreements to develop and carry out pro-
grams or projects of research, education, and pro-
motion relating to concrete masonry products; 
(11) to keep minutes, books, and records that re-
flect the actions and transactions of the Board, and 
promptly report minutes of each Board meeting to the 
Secretary; 
(12) to receive, investigate, and report to the Sec-
retary complaints of violations of the order; 
(13) to furnish the Secretary with such informa-
tion as the Secretary may request; 
(14) to recommend to the Secretary such amend-
ments to the order as the Board considers appro-
priate; and 
(15) to provide the Secretary with advance no-
tice of meetings to permit the Secretary, or the rep-
resentative of the Secretary, to attend the meetings. 
(d) PROGRAMS
AND
PROJECTS; BUDGETS; EX-
PENSES.— 
(1) PROGRAMS AND PROJECTS.— 
(A) IN GENERAL.—The order shall require 
the Board to submit to the Secretary for ap-
736 
proval any program or project of research, edu-
cation, or promotion relating to concrete ma-
sonry products. 
(B) STATEMENT
REQUIRED.—Any edu-
cational or promotional activity undertaken 
with funds provided by the Board shall include 
a statement that such activities were supported 
in whole or in part by the Board. 
(2) BUDGETS.— 
(A) SUBMISSION.—The order shall require 
the Board to submit to the Secretary for ap-
proval a budget of the anticipated expenses and 
disbursements of the Board in the implementa-
tion of the order, including the projected costs of 
concrete masonry products research, education, 
and promotion programs and projects. 
(B) TIMING.—The budget shall be submitted 
before the beginning of a fiscal year and as fre-
quently as may be necessary after the beginning 
of the fiscal year. 
(C) APPROVAL.—If the Secretary fails to 
approve or reject a budget within 60 days of re-
ceipt, such budget shall be deemed approved, un-
less the Secretary provides to the Board and to 
Congress, in writing, reasonable justification for
737 
the delay and provides a reasonable date by 
which approval or disapproval will be made. 
(3) ADMINISTRATIVE EXPENSES.— 
(A) INCURRING
EXPENSES.—The Board 
may incur the expenses described in paragraph 
(2) and other expenses for the administration, 
maintenance, and functioning of the Board as 
authorized by the Secretary. 
(B) PAYMENT OF EXPENSES.—Expenses in-
curred under subparagraph (A) shall be paid by 
the Board using assessments collected under sec-
tion 1306, earnings obtained from assessments, 
and other income of the Board. Any funds bor-
rowed by the Board shall be expended only for 
startup costs and capital outlays. 
(C) LIMITATION ON SPENDING.—For fiscal 
years beginning 3 or more years after the date 
of the establishment of the Board, the Board may 
not expend for administration (except for reim-
bursement to the Secretary required under sub-
paragraph (D)), maintenance, and functioning 
of the Board in a fiscal year an amount that ex-
ceeds 10 percent of the assessment and other in-
come received by the Board for the fiscal year.
738 
(D) REIMBURSEMENT OF SECRETARY.—The 
order shall require that the Secretary be reim-
bursed by the Board from assessments for all ex-
penses incurred by the Secretary in the imple-
mentation, administration, and supervision of 
the order, including all referenda costs incurred 
in connection with the order. 
(e) CONTRACTS AND AGREEMENTS.— 
(1) IN GENERAL.—The order shall provide that, 
with the approval of the Secretary, the Board may— 
(A) enter into contracts and agreements to 
carry out generic research, education, and pro-
motion programs and projects relating to con-
crete masonry products, including contracts and 
agreements with manufacturer associations or 
other entities as considered appropriate by the 
Secretary; 
(B) enter into contracts and agreements for 
administrative services; and 
(C) pay the cost of approved generic re-
search, education, and promotion programs and 
projects using assessments collected under section 
1306, earnings obtained from assessments, and 
other income of the Board.
739 
(2) REQUIREMENTS.—Each contract or agree-
ment shall provide that any person who enters into 
the contract or agreement with the Board shall— 
(A) develop and submit to the Board a pro-
posed program or project together with a budget 
that specifies the cost to be incurred to carry out 
the program or project; 
(B) keep accurate records of all transactions 
relating to the contract or agreement; 
(C) account for funds received and expended 
in connection with the contract or agreement; 
(D) make periodic reports to the Board of 
activities conducted under the contract or agree-
ment; and 
(E) make such other reports as the Board or 
the Secretary considers relevant. 
(3) FAILURE TO APPROVE.—If the Secretary fails 
to approve or reject a contract or agreement entered 
into under paragraph (1) within 60 days of receipt, 
the contract or agreement shall be deemed approved, 
unless the Secretary provides to the Board and to 
Congress, in writing, reasonable justification for the 
delay and provides a reasonable date by which ap-
proval or disapproval will be made. 
(f) BOOKS AND RECORDS OF BOARD.—
740 
(1) IN GENERAL.—The order shall require the 
Board to— 
(A) maintain such books and records (which 
shall be available to the Secretary for inspection 
and audit) as the Secretary may require; 
(B) collect and submit to the Secretary, at 
any time the Secretary may specify, any infor-
mation the Secretary may request; and 
(C) account for the receipt and disburse-
ment of all funds in the possession, or under the 
control, of the Board. 
(2) AUDITS.—The order shall require the Board 
to have— 
(A) the books and records of the Board au-
dited by an independent auditor at the end of 
each fiscal year; and 
(B) a report of the audit submitted directly 
to the Secretary. 
(g) PROHIBITED ACTIVITIES.— 
(1) IN GENERAL.—Subject to paragraph (2), the 
Board shall not engage in any program or project to, 
nor shall any funds received by the Board under this 
division be used to— 
(A) influence legislation, elections, or gov-
ernmental action;
741 
(B) engage in an action that would be a 
conflict of interest; 
(C) engage in advertising that is false or 
misleading; 
(D) engage in any promotion, research, or 
education that would be disparaging to other 
construction materials; or 
(E) engage in any promotion or project that 
would benefit any individual manufacturer. 
(2) EXCEPTIONS.—Paragraph (1) does not pre-
clude— 
(A) the development and recommendation of 
amendments to the order; 
(B) the communication to appropriate gov-
ernment officials of information relating to the 
conduct, implementation, or results of research, 
education, and promotion activities under the 
order except communications described in para-
graph (1)(A); or 
(C) any lawful action designed to market 
concrete masonry products directly to a foreign 
government or political subdivision of a foreign 
government. 
(h) PERIODIC EVALUATION.—The order shall require 
the Board to provide for the independent evaluation of all
742 
research, education, and promotion programs or projects 
undertaken under the order, beginning 5 years after the date 
of enactment of this Act and every 3 years thereafter. The 
Board shall submit to the Secretary and make available to 
the public the results of each such evaluation. 
(i) OBJECTIVES.—The Board shall establish annual re-
search, education, and promotion objectives and perform-
ance metrics for each fiscal year subject to approval by the 
Secretary. 
(j) BIENNIAL REPORT.—Every 2 years the Board shall 
prepare and make publicly available a comprehensive and 
detailed report that includes an identification and descrip-
tion of all programs and projects undertaken by the Board 
during the previous 2 years as well as those planned for 
the subsequent 2 years and detail the allocation or planned 
allocation of Board resources for each such program or 
project. Such report shall also include— 
(1) the overall financial condition of the Board; 
(2) a summary of the amounts obligated or ex-
pended during the 2 preceding fiscal years; and 
(3) a description of the extent to which the objec-
tives of the Board were met according to the metrics 
required under subsection (i). 
(k) BOOKS AND RECORDS OF PERSONS COVERED BY 
ORDER.—
743 
(1) IN GENERAL.—The order shall require that 
manufacturers shall— 
(A) maintain records sufficient to ensure 
compliance with the order and regulations; and 
(B) make the records described in subpara-
graph (A) available, during normal business 
hours, for inspection by employees or agents of 
the Board or the Department. 
(2) TIME REQUIREMENT.—Any record required 
to be maintained under paragraph (1) shall be main-
tained for such time period as the Secretary may pre-
scribe. 
(3) CONFIDENTIALITY OF INFORMATION.— 
(A) IN GENERAL.—Except as otherwise pro-
vided in this paragraph, trade secrets and com-
mercial or financial information that is privi-
leged or confidential reported to, or otherwise ob-
tained by the Board or the Secretary (or any 
representative of the Board or the Secretary) 
under this division shall not be disclosed by any 
officers, employees, and agents of the Department 
or the Board. 
(B) SUITS
AND
HEARINGS.—Information 
referred to in subparagraph (A) may be disclosed 
only if—
744 
(i) the Secretary considers the informa-
tion relevant; and 
(ii) the information is revealed in a ju-
dicial proceeding or administrative hearing 
brought at the direction or on the request of 
the Secretary or to which the Secretary or 
any officer of the Department is a party. 
(C) GENERAL STATEMENTS AND PUBLICA-
TIONS.—This paragraph does not prohibit— 
(i) the issuance of general statements 
based on reports or on information relating 
to a number of persons subject to an order 
if the statements do not identify the infor-
mation furnished by any person; or 
(ii) the publication, by direction of the 
Secretary, of the name of any person vio-
lating any order and a statement of the 
particular provisions of the order violated 
by the person. 
(D) PENALTY.—Any officer, employee, or 
agent of the Department of Commerce or any of-
ficer, employee, or agent of the Board who will-
fully violates this paragraph shall be fined not 
more than $1,000 and imprisoned for not more 
than 1 year, or both.
745 
(4) WITHHOLDING
INFORMATION.—This sub-
section does not authorize the withholding of informa-
tion from Congress. 
SEC. 1306. ASSESSMENTS. 
(a) ASSESSMENTS.—The order shall provide that as-
sessments shall be paid by a manufacturer if the manufac-
turer has manufactured concrete masonry products during 
a period of at least 180 days prior to the date the assessment 
is to be remitted. 
(b) COLLECTION.— 
(1) IN
GENERAL.—Assessments required under 
the order shall be remitted by the manufacturer to the 
Board in the manner prescribed by the order. 
(2) TIMING.—The order shall provide that assess-
ments required under the order shall be remitted to 
the Board not less frequently than quarterly. 
(3) RECORDS.—As part of the remittance of as-
sessments, manufacturers shall identify the total 
amount due in assessments on all sales receipts, in-
voices or other commercial documents of sale as a re-
sult of the sale of concrete masonry units in a manner 
as prescribed by the Board to ensure compliance with 
the order. 
(c) ASSESSMENT RATES.—With respect to assessment 
rates, the order shall contain the following terms:
746 
(1) INITIAL RATE.—The assessment rate on con-
crete masonry products shall be $0.01 per concrete 
masonry unit sold. 
(2) CHANGES IN THE RATE.— 
(A) AUTHORITY
TO
CHANGE
RATE.—The 
Board shall have the authority to change the as-
sessment rate. A two-thirds majority of voting 
members of the Board shall be required to ap-
prove a change in the assessment rate. 
(B) LIMITATION
ON
INCREASES.—An in-
crease or decrease in the assessment rate with re-
spect to concrete masonry products may not ex-
ceed $0.01 per concrete masonry unit sold. 
(C) MAXIMUM RATE.—The assessment rate 
shall not be in excess of $0.05 per concrete ma-
sonry unit. 
(D) 
LIMITATION
ON
FREQUENCY
OF 
CHANGES.—The assessment rate may not be in-
creased or decreased more than once annually. 
(d) LATE-PAYMENT AND INTEREST CHARGES.— 
(1) IN
GENERAL.—Late-payment and interest 
charges may be levied on each person subject to the 
order who fails to remit an assessment in accordance 
with subsection (b).
747 
(2) RATE.—The rate for late-payment and inter-
est charges shall be specified by the Secretary. 
(e) INVESTMENT
OF ASSESSMENTS.—Pending dis-
bursement of assessments under a budget approved by the 
Secretary, the Board may invest assessments collected under 
this section in— 
(1) obligations of the United States or any agen-
cy of the United States; 
(2) general obligations of any State or any polit-
ical subdivision of a State; 
(3) interest-bearing accounts or certificates of de-
posit of financial institutions that are members of the 
Federal Reserve System; or 
(4) obligations fully guaranteed as to principal 
and interest by the United States. 
(f) ASSESSMENT
FUNDS
FOR
REGIONAL
INITIA-
TIVES.— 
(1) IN GENERAL.—The order shall provide that 
not less than 50 percent of the assessments (less ad-
ministration expenses) paid by a manufacturer shall 
be used to support research, education, and promotion 
programs and projects in support of the geographic 
region of the manufacturer. 
(2) GEOGRAPHIC REGIONS.—The order shall pro-
vide for the following geographic regions:
748 
(A) Region I shall comprise Connecticut, 
Delaware, the District of Columbia, Maine, 
Maryland, Massachusetts, New Hampshire, New 
Jersey, New York, Pennsylvania, Rhode Island, 
Vermont, and West Virginia. 
(B) Region II shall comprise Alabama, 
Florida, Georgia, Mississippi, North Carolina, 
South Carolina, Tennessee, and Virginia. 
(C) Region III shall comprise Illinois, Indi-
ana, Iowa, Kentucky, Michigan, Minnesota, Ne-
braska, North Dakota, Ohio, South Dakota, and 
Wisconsin. 
(D) Region IV shall comprise Arizona, Ar-
kansas, Kansas, Louisiana, Missouri, New Mex-
ico, Oklahoma, and Texas. 
(E) Region V shall comprise Alaska, Cali-
fornia, Colorado, Hawaii, Idaho, Montana, Ne-
vada, Oregon, Utah, Washington, and Wyoming. 
(3) ADJUSTMENT
OF
GEOGRAPHIC
REGIONS.— 
The order shall provide that the Secretary may, upon 
recommendation of the Board, modify the composition 
of the geographic regions described in paragraph (2). 
SEC. 1307. REFERENDA. 
(a) INITIAL REFERENDUM.—
749 
(1) REFERENDUM REQUIRED.—During the 60- 
day period immediately preceding the proposed effec-
tive date of the order issued under section 1304, the 
Secretary shall conduct a referendum among manu-
facturers eligible under subsection (b)(2) subject to as-
sessments under section 1306. 
(2) APPROVAL OF ORDER NEEDED.—The order 
shall become effective only if the Secretary determines 
that the order has been approved by a majority of 
manufacturers voting who also represent a majority 
of the machine cavities in operation of those manufac-
turers voting in the referendum. 
(b) VOTES PERMITTED.— 
(1) IN GENERAL.—Each manufacturer eligible to 
vote in a referendum conducted under this section 
shall be entitled to cast 1 vote. 
(2) ELIGIBILITY.—For purposes of paragraph 
(1), a manufacturer shall be considered to be eligible 
to vote if the manufacturer has manufactured concrete 
masonry products during a period of at least 180 
days prior to the first day of the period during which 
voting in the referendum will occur. 
(c) MANNER OF CONDUCTING REFERENDA.—
750 
(1) IN GENERAL.—Referenda conducted pursuant 
to this section shall be conducted in a manner deter-
mined by the Secretary. 
(2) ADVANCE
REGISTRATION.—A manufacturer 
who chooses to vote in any referendum conducted 
under this section shall register with the Secretary 
prior to the voting period, after receiving notice from 
the Secretary concerning the referendum under para-
graph (4). 
(3) VOTING.—The Secretary shall establish pro-
cedures for voting in any referendum conducted under 
this section. The ballots and other information or re-
ports that reveal or tend to reveal the identity or vote 
of voters shall be strictly confidential. 
(4) NOTICE.—Not later than 30 days before a 
referendum is conducted under this section with re-
spect to an order, the Secretary shall notify all manu-
facturers, in such a manner as determined by the Sec-
retary, of the period during which voting in the ref-
erendum will occur. The notice shall explain any reg-
istration and voting procedures established under this 
subsection. 
(d) SUBSEQUENT REFERENDA.—If an order is ap-
proved in a referendum conducted under subsection (a), the 
Secretary shall conduct a subsequent referendum—
751 
(1) at the request of the Board, subject to the vot-
ing requirements of subsections (b) and (c), to ascer-
tain whether eligible manufacturers favor suspension, 
termination, or continuance of the order; or 
(2) effective beginning on the date that is 5 years 
after the date of the approval of the order, and at 5- 
year intervals thereafter, at the request of 25 percent 
or more of the total number of persons eligible to vote 
under subsection (b). 
(e) SUSPENSION OR TERMINATION.—If, as a result of 
a referendum conducted under subsection (d), the Secretary 
determines that suspension or termination of the order is 
favored by a majority of all votes cast in the referendum 
as provided in subsection (a)(2), the Secretary shall— 
(1) not later than 180 days after the referendum, 
suspend or terminate, as appropriate, collection of as-
sessments under the order; and 
(2) suspend or terminate, as appropriate, pro-
grams and projects under the order as soon as prac-
ticable and in an orderly manner. 
(f) COSTS OF REFERENDA.—The Board established 
under an order with respect to which a referendum is con-
ducted under this section shall reimburse the Secretary from 
assessments for any expenses incurred by the Secretary to 
conduct the referendum.
752 
SEC. 1308. PETITION AND REVIEW. 
(a) PETITION.— 
(1) IN GENERAL.—A person subject to an order 
issued under this division may file with the Secretary 
a petition— 
(A) stating that the order, any provision of 
the order, or any obligation imposed in connec-
tion with the order, is not established in accord-
ance with law; and 
(B) requesting a modification of the order 
or an exemption from the order. 
(2) HEARING.—The Secretary shall give the peti-
tioner an opportunity for a hearing on the petition, 
in accordance with regulations issued by the Sec-
retary. 
(3) RULING.—After the hearing, the Secretary 
shall make a ruling on the petition. The ruling shall 
be final, subject to review as set forth in subsection 
(b). 
(4) LIMITATION
ON
PETITION.—Any petition 
filed under this subsection challenging an order, any 
provision of the order, or any obligation imposed in 
connection with the order, shall be filed not less than 
2 years after the effective date of the order, provision, 
or obligation subject to challenge in the petition. 
(b) REVIEW.—
753 
(1) COMMENCEMENT
OF
ACTION.—The district 
courts of the United States in any district in which 
a person who is a petitioner under subsection (a) re-
sides or conducts business shall have jurisdiction to 
review the ruling of the Secretary on the petition of 
the person, if a complaint requesting the review is 
filed no later than 30 days after the date of the entry 
of the ruling by the Secretary. 
(2) PROCESS.—Service of process in proceedings 
under this subsection shall be conducted in accordance 
with the Federal Rules of Civil Procedure. 
(3) REMANDS.—If the court in a proceeding 
under this subsection determines that the ruling of the 
Secretary on the petition of the person is not in ac-
cordance with law, the court shall remand the matter 
to the Secretary with directions— 
(A) to make such ruling as the court shall 
determine to be in accordance with law; or 
(B) to take such further action as, in the 
opinion of the court, the law requires. 
(c) ENFORCEMENT.—The pendency of proceedings in-
stituted under this section shall not impede, hinder, or 
delay the Attorney General or the Secretary from obtaining 
relief under section 1309.
754 
SEC. 1309. ENFORCEMENT. 
(a) JURISDICTION.—A district court of the United 
States shall have jurisdiction to enforce, and to prevent and 
restrain any person from violating, this division or an 
order or regulation issued by the Secretary under this divi-
sion. 
(b) REFERRAL TO ATTORNEY GENERAL.—A civil ac-
tion authorized to be brought under this section shall be 
referred to the Attorney General of the United States for 
appropriate action. 
(c) CIVIL PENALTIES AND ORDERS.— 
(1) CIVIL PENALTIES.—A person who willfully 
violates an order or regulation issued by the Secretary 
under this division may be assessed by the Secretary 
a civil penalty of not more than $5,000 for each vio-
lation. 
(2) SEPARATE
OFFENSE.—Each violation and 
each day during which there is a failure to comply 
with an order or regulation issued by the Secretary 
shall be considered to be a separate offense. 
(3) CEASE-AND-DESIST
ORDERS.—In addition 
to, or in lieu of, a civil penalty, the Secretary may 
issue an order requiring a person to cease and desist 
from violating the order or regulation. 
(4) NOTICE AND HEARING.—No order assessing a 
penalty or cease-and-desist order may be issued by the
755 
Secretary under this subsection unless the Secretary 
provides notice and an opportunity for a hearing on 
the record with respect to the violation. 
(5) FINALITY.—An order assessing a penalty or 
a cease-and-desist order issued under this subsection 
by the Secretary shall be final and conclusive unless 
the person against whom the order is issued files an 
appeal from the order with the appropriate district 
court of the United States. 
(d) ADDITIONAL REMEDIES.—The remedies provided 
in this division shall be in addition to, and not exclusive 
of, other remedies that may be available. 
SEC. 1310. INVESTIGATION AND POWER TO SUBPOENA. 
(a) INVESTIGATIONS.—The Secretary may conduct 
such investigations as the Secretary considers necessary for 
the effective administration of this division, or to determine 
whether any person has engaged or is engaging in any act 
that constitutes a violation of this division or any order 
or regulation issued under this division. 
(b) SUBPOENAS, OATHS, AND AFFIRMATIONS.— 
(1) INVESTIGATIONS.—For the purpose of con-
ducting an investigation under subsection (a), the 
Secretary may administer oaths and affirmations, 
subpoena witnesses, compel the attendance of wit-
nesses, take evidence, and require the production of
756 
any records that are relevant to the inquiry. The pro-
duction of the records may be required from any place 
in the United States. 
(2) ADMINISTRATIVE HEARINGS.—For the pur-
pose of an administrative hearing held under section 
1308(a)(2) or section 1309(c)(4), the presiding officer 
may administer oaths and affirmations, subpoena 
witnesses, compel the attendance of witnesses, take 
evidence, and require the production of any records 
that are relevant to the inquiry. The attendance of 
witnesses and the production of the records may be re-
quired from any place in the United States. 
(c) AID OF COURTS.— 
(1) IN GENERAL.—In the case of contumacy by, 
or refusal to obey a subpoena issued under subsection 
(b) to, any person, the Secretary may invoke the aid 
of any court of the United States within the jurisdic-
tion of which the investigation or proceeding is con-
ducted, or where the person resides or conducts busi-
ness, in order to enforce a subpoena issued under sub-
section (b). 
(2) ORDER.—The court may issue an order re-
quiring the person referred to in paragraph (1) to 
comply with a subpoena referred to in paragraph (1).
757 
(3) FAILURE TO OBEY.—Any failure to obey the 
order of the court may be punished by the court as 
a contempt of court. 
(4) PROCESS.—Process in any proceeding under 
this subsection may be served in the United States ju-
dicial district in which the person being proceeded 
against resides or conducts business, or wherever the 
person may be found. 
SEC. 1311. SUSPENSION OR TERMINATION. 
(a) MANDATORY SUSPENSION OR TERMINATION.—The 
Secretary shall suspend or terminate an order or a provi-
sion of an order if the Secretary finds that an order or pro-
vision of an order obstructs or does not tend to effectuate 
the purpose of this division, or if the Secretary determines 
that the order or a provision of an order is not favored 
by a majority of all votes cast in the referendum as provided 
in section 1307(a)(2). 
(b) IMPLEMENTATION
OF SUSPENSION
OR TERMI-
NATION.—If, as a result of a referendum conducted under 
section 1307, the Secretary determines that the order is not 
approved, the Secretary shall— 
(1) not later than 180 days after making the de-
termination, suspend or terminate, as the case may 
be, collection of assessments under the order; and
758 
(2) as soon as practicable, suspend or terminate, 
as the case may be, activities under the order in an 
orderly manner. 
SEC. 1312. AMENDMENTS TO ORDERS. 
The provisions of this division applicable to the order 
shall be applicable to any amendment to the order, except 
that section 1308 shall not apply to an amendment. 
SEC. 1313. EFFECT ON OTHER LAWS. 
This division shall not affect or preempt any other 
Federal or State law authorizing research, education, and 
promotion relating to concrete masonry products. 
SEC. 1314. REGULATIONS. 
The Secretary may issue such regulations as may be 
necessary to carry out this division and the power vested 
in the Secretary under this division. 
SEC. 1315. LIMITATION ON EXPENDITURES FOR ADMINIS-
TRATIVE EXPENSES. 
Funds appropriated to carry out this division may not 
be used for the payment of the expenses or expenditures of 
the Board in administering the order. 
SEC. 1316. LIMITATIONS ON OBLIGATION OF FUNDS. 
(a) IN GENERAL.—In each fiscal year of the covered 
period, the Board may not obligate an amount greater than 
the sum of—
759 
(1) 73 percent of the amount of assessments esti-
mated to be collected under section 1306 in such fiscal 
year; 
(2) 73 percent of the amount of assessments actu-
ally collected under section 1306 in the most recent 
fiscal year for which an audit report has been sub-
mitted under section 1305(f)(2)(B) as of the begin-
ning of the fiscal year for which the amount that may 
be obligated is being determined, less the estimate 
made pursuant to paragraph (1) for such most recent 
fiscal year; and 
(3) amounts permitted in preceding fiscal years 
to be obligated pursuant to this subsection that have 
not been obligated. 
(b) EXCESS AMOUNTS DEPOSITED IN ESCROW AC-
COUNT.—Assessments collected under section 1306 in excess 
of the amount permitted to be obligated under subsection 
(a) in a fiscal year shall be deposited in an escrow account 
for the duration of the covered period. 
(c) TREATMENT OF AMOUNTS IN ESCROW ACCOUNT.— 
During the covered period, the Board may not obligate, ex-
pend, or borrow against amounts required under subsection 
(b) to be deposited in the escrow account. Any interest 
earned on such amounts shall be deposited in the escrow
760 
account and shall be unavailable for obligation for the dura-
tion of the covered period. 
(d) RELEASE OF AMOUNTS IN ESCROW ACCOUNT.— 
After the covered period, the Board may withdraw and obli-
gate in any fiscal year an amount in the escrow account 
that does not exceed 1⁄5 of the amount in the escrow account 
on the last day of the covered period. 
(e) SPECIAL RULE FOR ESTIMATES FOR PARTICULAR 
FISCAL YEARS.— 
(1) RULE.—For purposes of subsection (a)(1), 
the amount of assessments estimated to be collected 
under section 1306 in a fiscal year specified in para-
graph (2) shall be equal to 62 percent of the amount 
of assessments actually collected under such section in 
the most recent fiscal year for which an audit report 
has been submitted under section 1305(f)(2)(B) as of 
the beginning of the fiscal year for which the amount 
that may be obligated is being determined. 
(2) FISCAL YEARS SPECIFIED.—The fiscal years 
specified in this paragraph are the 9th and 10th fis-
cal years that begin on or after the date of enactment 
of this Act. 
(f) COVERED PERIOD DEFINED.—In this section, the 
term ‘‘covered period’’ means the period that begins on the 
date of enactment of this Act and ends on the last day of
761 
the 11th fiscal year that begins on or after such date of 
enactment. 
SEC. 1317. STUDY AND REPORT BY THE GOVERNMENT AC-
COUNTABILITY OFFICE. 
Not later than 5 years after the date of enactment of 
this Act, the Comptroller General of the United States shall 
prepare a study, and not later than 8 years after the date 
of enactment of this Act, the Comptroller General shall sub-
mit to Congress and the Secretary a report, examining— 
(1) how the Board spends assessments collected; 
(2) the extent to which the reported activities of 
the Board help achieve the annual objectives of the 
Board; 
(3) any changes in demand for concrete masonry 
products relative to other building materials; 
(4) any impact of the activities of the Board on 
the market share of competing products; 
(5) any impact of the activities of the Board on 
the overall size of the market for building products; 
(6) any impact of the activities of the Board on 
the total number of concrete-masonry-related jobs, in-
cluding manufacturing, sales, and installation; 
(7) any significant effects of the activities of the 
Board on downstream purchasers of concrete masonry
762 
products and real property into which concrete ma-
sonry products are incorporated; 
(8) effects on prices of concrete masonry products 
as a result of the activities of the Board; 
(9) the cost to the Federal Government of an in-
crease in concrete masonry product prices, if any, as 
a result of the program established by this division; 
(10) the extent to which key statutory require-
ments are met; 
(11) the extent and strength of Federal oversight 
of the program established by this division; 
(12) the appropriateness of administering the 
program from within the Office of the Secretary of 
Commerce and the appropriateness of administering 
the program from within any division of the Depart-
ment, including whether the Department has the ex-
pertise, knowledge, or other capabilities necessary to 
adequately administer the program; and 
(13) any other topic that the Comptroller Gen-
eral considers appropriate. 
SEC. 1318. STUDY AND REPORT BY THE DEPARTMENT OF 
COMMERCE. 
Not later than 3 years after the date of enactment of 
this Act, the Secretary shall prepare a study and submit 
to Congress a report examining the appropriateness and ef-
763 
fectiveness of applying the commodity check-off program 
model (such as those programs established under the Com-
modity Promotion, Research, and Information Act of 1996 
(7 U.S.C. 7411 et seq.)) to a nonagricultural industry, tak-
ing into account the program established by this division 
and any other check-off program involving a non-
agricultural industry. 
DIVISION F—BUILD ACT OF 2018 
SEC. 1401. SHORT TITLE. 
This division may be cited as the ‘‘Better Utilization 
of Investments Leading to Development Act of 2018’’ or the 
‘‘BUILD Act of 2018’’. 
SEC. 1402. DEFINITIONS. 
In this division: 
(1) 
APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional commit-
tees’’ means— 
(A) the Committee on Foreign Relations 
and the Committee on Appropriations of the 
Senate; and 
(B) the Committee on Foreign Affairs and 
the Committee on Appropriations of the House of 
Representatives. 
(2) LESS DEVELOPED COUNTRY.—The term ‘‘less 
developed country’’ means a country with a low-in-
764 
come economy, lower-middle-income economy, or 
upper-middle-income economy, as defined by the 
International Bank for Reconstruction and Develop-
ment and the International Development Association 
(collectively referred to as the ‘‘World Bank’’). 
(3) 
PREDECESSOR
AUTHORITY.—The 
term 
‘‘predecessor authority’’ means authorities repealed by 
title VI. 
(4) QUALIFYING SOVEREIGN ENTITY.—The term 
‘‘qualifying sovereign entity’’ means— 
(A) any agency or instrumentality of a for-
eign state (as defined in section 1603 of title 28, 
United States Code) that has a purpose that is 
similar to the purpose of the Corporation as de-
scribed in section 1412(b); or 
(B) any international financial institution 
(as defined in section 1701(c) of the Inter-
national Financial Institutions Act (22 U.S.C. 
262r(c))). 
TITLE I—ESTABLISHMENT 
SEC. 1411. STATEMENT OF POLICY. 
It is the policy of the United States to facilitate mar-
ket-based private sector development and inclusive economic 
growth in less developed countries through the provision of 
credit, capital, and other financial support—
765 
(1) to mobilize private capital in support of sus-
tainable, broad-based economic growth, poverty reduc-
tion, and development through demand-driven part-
nerships with the private sector that further the for-
eign policy interests of the United States; 
(2) to finance development that builds and 
strengthens civic institutions, promotes competition, 
and provides for public accountability and trans-
parency; 
(3) to help private sector actors overcome identi-
fiable market gaps and inefficiencies without dis-
torting markets; 
(4) to achieve clearly defined economic and so-
cial development outcomes; 
(5) to coordinate with institutions with purposes 
similar to the purposes of the Corporation to leverage 
resources of those institutions to produce the greatest 
impact; 
(6) to provide countries a robust alternative to 
state-directed investments by authoritarian govern-
ments and United States strategic competitors using 
best practices with respect to transparency and envi-
ronmental and social safeguards, and which take into 
account the debt sustainability of partner countries;
766 
(7) to leverage private sector capabilities and in-
novative development tools to help countries transi-
tion from recipients of bilateral development assist-
ance toward increased self-reliance; and 
(8) to complement and be guided by overall 
United States foreign policy, development, and na-
tional security objectives, taking into account the pri-
orities and needs of countries receiving support. 
SEC. 1412. UNITED STATES INTERNATIONAL DEVELOPMENT 
FINANCE CORPORATION. 
(a) ESTABLISHMENT.—There is established in the exec-
utive branch the United States International Development 
Finance Corporation (in this division referred to as the 
‘‘Corporation’’), which shall be a wholly owned Government 
corporation for purposes of chapter 91 of title 31, United 
States Code, under the foreign policy guidance of the Sec-
retary of State. 
(b) PURPOSE.—The purpose of the Corporation shall 
be to mobilize and facilitate the participation of private 
sector capital and skills in the economic development of less 
developed countries, as described in subsection (c), and 
countries in transition from nonmarket to market econo-
mies, in order to complement the development assistance ob-
jectives, and advance the foreign policy interests, of the 
United States. In carrying out its purpose, the Corporation,
767 
utilizing broad criteria, shall take into account in its fi-
nancing operations the economic and financial soundness 
and development objectives of projects for which it provides 
support under title II. 
(c) LESS DEVELOPED COUNTRY FOCUS.— 
(1) 
IN
GENERAL.—The 
Corporation 
shall 
prioritize the provision of support under title II in 
less developed countries with a low-income economy 
or a lower-middle-income economy. 
(2) SUPPORT IN UPPER-MIDDLE-INCOME COUN-
TRIES.—The Corporation shall restrict the provision 
of support under title II in a less developed country 
with an upper-middle-income economy unless— 
(A) the President certifies to the appro-
priate congressional committees that such sup-
port furthers the national economic or foreign 
policy interests of the United States; and 
(B) such support is designed to produce sig-
nificant developmental outcomes or provide de-
velopmental benefits to the poorest population of 
that country. 
SEC. 1413. MANAGEMENT OF CORPORATION. 
(a) STRUCTURE OF CORPORATION.—There shall be in 
the Corporation a Board of Directors (in this division re-
ferred to as the ‘‘Board’’), a Chief Executive Officer, a Dep-
768 
uty Chief Executive Officer, a Chief Risk Officer, a Chief 
Development Officer, and such other officers as the Board 
may determine. 
(b) BOARD OF DIRECTORS.— 
(1) DUTIES.—All powers of the Corporation 
shall vest in and be exercised by or under the author-
ity of the Board. The Board— 
(A) shall perform the functions specified to 
be carried out by the Board in this division; 
(B) may prescribe, amend, and repeal by-
laws, rules, regulations, policies, and procedures 
governing the manner in which the business of 
the Corporation may be conducted and in which 
the powers granted to the Corporation by law 
may be exercised; and 
(C) shall develop, in consultation with 
stakeholders, other interested parties, and the ap-
propriate congressional committees, a publicly 
available policy with respect to consultations, 
hearings, and other forms of engagement in order 
to provide for meaningful public participation 
in the Board’s activities. 
(2) MEMBERSHIP OF BOARD.— 
(A) IN GENERAL.—The Board shall consist 
of—
769 
(i) the Chief Executive Officer of the 
Corporation; 
(ii) the officers specified in subpara-
graph (B); and 
(iii) four other individuals who shall 
be appointed by the President, by and with 
the advice and consent of the Senate, of 
which— 
(I) one individual should be ap-
pointed from among a list of at least 
5 individuals submitted by the major-
ity leader of the Senate after consulta-
tion with the chairman of the Com-
mittee on Foreign Relations of the Sen-
ate; 
(II) one individual should be ap-
pointed from among a list of at least 
5 individuals submitted by the minor-
ity leader of the Senate after consulta-
tion with the ranking member of the 
Committee on Foreign Relations of the 
Senate; 
(III) one individual should be ap-
pointed from among a list of at least 
5 individuals submitted by the Speaker
770 
of the House of Representatives after 
consultation with the chairman of the 
Committee on Foreign Affairs of the 
House of Representatives; and 
(IV) one individual should be ap-
pointed from among a list of at least 
5 individuals submitted by the minor-
ity leader of the House of Representa-
tives after consultation with the rank-
ing member of the Committee on For-
eign Affairs of the House of Represent-
atives. 
(B) OFFICERS SPECIFIED.— 
(i) IN GENERAL.—The officers specified 
in this subparagraph are the following: 
(I) The Secretary of State or a 
designee of the Secretary. 
(II) The Administrator of the 
United States Agency for International 
Development or a designee of the Ad-
ministrator. 
(III) The Secretary of the Treas-
ury or a designee of the Secretary. 
(IV) The Secretary of Commerce 
or a designee of the Secretary.
771 
(ii) 
REQUIREMENTS
FOR
DES-
IGNEES.—A designee under clause (i) shall 
be selected from among officers— 
(I) appointed by the President, by 
and with the advice and consent of the 
Senate; 
(II) whose duties relate to the pro-
grams of the Corporation; and 
(III) who is designated by and 
serving at the pleasure of the Presi-
dent. 
(C) REQUIREMENTS FOR NONGOVERNMENT 
MEMBERS.—A member of the Board described in 
subparagraph (A)(iii)— 
(i) may not be an officer or employee 
of the United States Government; 
(ii) shall have relevant experience, 
which may include experience relating to 
the private sector, the environment, labor 
organizations, or international development, 
to carry out the purpose of the Corporation; 
(iii) shall be appointed for a term of 3 
years and may be reappointed for one addi-
tional term;
772 
(iv) shall serve until the member’s suc-
cessor is appointed and confirmed; 
(v) shall be compensated at a rate 
equivalent to that of level IV of the Execu-
tive Schedule under section 5315 of title 5, 
United States Code, when engaged in the 
business of the Corporation; and 
(vi) may be paid per diem in lieu of 
subsistence at the applicable rate under the 
Federal Travel Regulation under subtitle F 
of title 41, Code of Federal Regulations, 
from time to time, while away from the 
home or usual place of business of the mem-
ber. 
(3) CHAIRPERSON.—The Secretary of State, or 
the designee of the Secretary under paragraph 
(2)(B)(i)(I), shall serve as the Chairperson of the 
Board. 
(4) VICE CHAIRPERSON.—The Administrator of 
the United States Agency for International Develop-
ment, or the designee of the Administrator under 
paragraph (2)(B)(i)(II), shall serve as the Vice Chair-
person of the Board.
773 
(5) QUORUM.—Five members of the Board shall 
constitute a quorum for the transaction of business by 
the Board. 
(c) PUBLIC HEARINGS.—The Board shall hold at least 
2 public hearings each year in order to afford an oppor-
tunity for any person to present views with respect to 
whether— 
(1) the Corporation is carrying out its activities 
in accordance with this division; and 
(2) any support provided by the Corporation 
under title II in any country should be suspended, ex-
panded, or extended. 
(d) CHIEF EXECUTIVE OFFICER.— 
(1) APPOINTMENT.—There shall be in the Cor-
poration a Chief Executive Officer, who shall be ap-
pointed by the President, by and with the advice and 
consent of the Senate, and who shall serve at the 
pleasure of the President. 
(2) AUTHORITIES AND DUTIES.—The Chief Exec-
utive Officer shall be responsible for the management 
of the Corporation and shall exercise the powers and 
discharge the duties of the Corporation subject to the 
bylaws, rules, regulations, and procedures established 
by the Board.
774 
(3) RELATIONSHIP TO BOARD.—The Chief Exec-
utive Officer shall report to and be under the direct 
authority of the Board. 
(4) COMPENSATION.—Section 5313 of title 5, 
United States Code, is amended by adding at the end 
the following: 
‘‘Chief Executive Officer, United States Inter-
national Development Finance Corporation.’’. 
(e) DEPUTY CHIEF EXECUTIVE OFFICER.—There shall 
be in the Corporation a Deputy Chief Executive Officer, 
who shall be appointed by the President, by and with the 
advice and consent of the Senate, and who shall serve at 
the pleasure of the President. 
(f) CHIEF RISK OFFICER.— 
(1) APPOINTMENT.—Subject to the approval of 
the Board, the Chief Executive Officer of the Corpora-
tion shall appoint a Chief Risk Officer, from among 
individuals with experience at a senior level in finan-
cial risk management, who— 
(A) shall report directly to the Board; and 
(B) shall be removable only by a majority 
vote of the Board. 
(2) DUTIES.—The Chief Risk Officer shall, in co-
ordination with the audit committee of the Board es-
tablished under section 1441, develop, implement, and
775 
manage a comprehensive process for identifying, as-
sessing, monitoring, and limiting risks to the Cor-
poration, including the overall portfolio diversifica-
tion of the Corporation. 
(g) CHIEF DEVELOPMENT OFFICER.— 
(1) APPOINTMENT.—Subject to the approval of 
the Board, the Chief Executive Officer, with the con-
currence of the Administrator of the United States 
Agency for International Development, shall appoint 
a Chief Development Officer, from among individuals 
with experience in development, who— 
(A) shall report directly to the Board; and 
(B) shall be removable only by a majority 
vote of the Board. 
(2) DUTIES.—The Chief Development Officer 
shall— 
(A) coordinate the Corporation’s develop-
ment policies and implementation efforts with 
the United States Agency for International De-
velopment, the Millennium Challenge Corpora-
tion, and other relevant United States Govern-
ment departments and agencies, including di-
rectly liaising with missions of the United States 
Agency for International Development, to ensure 
that departments, agencies, and missions have
776 
training, awareness, and access to the Corpora-
tion’s tools in relation to development policy and 
projects in countries; 
(B) under the guidance of the Chief Execu-
tive Officer, manage employees of the Corpora-
tion that are dedicated to structuring, moni-
toring, and evaluating transactions and projects 
co-designed with the United States Agency for 
International Development and other relevant 
United States Government departments and 
agencies; 
(C) authorize and coordinate transfers of 
funds or other resources to and from such agen-
cies, departments, or missions upon the concur-
rence of those institutions in support of the Cor-
poration’s projects or activities; 
(D) manage the responsibilities of the Cor-
poration under paragraphs (1) and (4) of section 
1442(b) and paragraphs (1)(A) and (3)(A) of 
section 1443(b); 
(E) coordinate and implement the activities 
of the Corporation under section 1445; and 
(F) be an ex officio member of the Develop-
ment Advisory Council established under sub-
777 
section (i) and participate in or send a rep-
resentative to each meeting of the Council. 
(h) OFFICERS AND EMPLOYEES.— 
(1) IN GENERAL.—Except as otherwise provided 
in this section, officers, employees, and agents shall be 
selected and appointed by the Corporation, and shall 
be vested with such powers and duties as the Corpora-
tion may determine. 
(2) ADMINISTRATIVELY
DETERMINED
EMPLOY-
EES.— 
(A) APPOINTMENT; 
COMPENSATION; 
RE-
MOVAL.—Of officers and employees employed by 
the Corporation under paragraph (1), not more 
than 50 may be appointed, compensated, or re-
moved without regard to title 5, United States 
Code. 
(B) REINSTATEMENT.—Under such regula-
tions as the President may prescribe, officers and 
employees appointed to a position under sub-
paragraph (A) may be entitled, upon removal 
from such position (unless the removal was for 
cause), to reinstatement to the position occupied 
at the time of appointment or to a position of 
comparable grade and salary.
778 
(C) ADDITIONAL POSITIONS.—Positions au-
thorized by subparagraph (A) shall be in addi-
tion to those otherwise authorized by law, includ-
ing positions authorized under section 5108 of 
title 5, United States Code. 
(D) RATES OF PAY FOR OFFICERS AND EM-
PLOYEES.—The Corporation may set and adjust 
rates of basic pay for officers and employees ap-
pointed under subparagraph (A) without regard 
to the provisions of chapter 51 or subchapter III 
of chapter 53 of title 5, United States Code, re-
lating to classification of positions and General 
Schedule pay rates, respectively. 
(3) LIABILITY OF EMPLOYEES.— 
(A) IN GENERAL.—An individual who is a 
member of the Board or an officer or employee 
of the Corporation has no liability under this di-
vision with respect to any claim arising out of 
or resulting from any act or omission by the in-
dividual within the scope of the employment of 
the individual in connection with any trans-
action by the Corporation. 
(B) RULE
OF
CONSTRUCTION.—Subpara-
graph (A) shall not be construed to limit per-
sonal liability of an individual for criminal acts
779 
or omissions, willful or malicious misconduct, 
acts or omissions for private gain, or any other 
acts or omissions outside the scope of the individ-
ual’s employment. 
(C) CONFLICTS
OF
INTEREST.—The Cor-
poration shall establish and publish procedures 
for avoiding conflicts of interest on the part of 
officers and employees of the Corporation and 
members of the Development Advisory Council 
established under subsection (i). 
(D) SAVINGS PROVISION.—This paragraph 
shall not be construed— 
(i) to affect— 
(I) any other immunities and 
protections that may be available to an 
individual described in subparagraph 
(A) under applicable law with respect 
to a transaction described in that sub-
paragraph; or 
(II) any other right or remedy 
against the Corporation, against the 
United States under applicable law, or 
against any person other than an indi-
vidual described in subparagraph (A) 
participating in such a transaction; or
780 
(ii) to limit or alter in any way the 
immunities that are available under appli-
cable law for Federal officers and employees 
not described in this paragraph. 
(i) DEVELOPMENT ADVISORY COUNCIL.— 
(1) IN GENERAL.—There is established a Devel-
opment Advisory Council (in this subsection referred 
to as the ‘‘Council’’) to advise the Board on develop-
ment objectives of the Corporation. 
(2) MEMBERSHIP.—Members of the Council shall 
be appointed by the Board, on the recommendation of 
the Chief Executive Officer and the Chief Development 
Officer, and shall be composed of not more than 9 
members broadly representative of nongovernmental 
organizations, think tanks, advocacy organizations, 
foundations, and other institutions engaged in inter-
national development. 
(3) FUNCTIONS.—The Board shall call upon 
members of the Council, either collectively or individ-
ually, to advise the Board regarding the extent to 
which the Corporation is meeting its development 
mandate and any suggestions for improvements in 
with respect to meeting that mandate, including op-
portunities in countries and project development and 
implementation challenges and opportunities.
781 
(4) FEDERAL ADVISORY COMMITTEE ACT.—The 
Council shall not be subject to the Federal Advisory 
Committee Act (5 U.S.C. App.). 
SEC. 1414. INSPECTOR GENERAL OF THE CORPORATION. 
(a) IN GENERAL.—Section 8G(a)(2) of the Inspector 
General Act of 1978 (5 U.S.C. App.) is amended by insert-
ing ‘‘the United States International Development Finance 
Corporation,’’ after ‘‘the Smithsonian Institution,’’. 
(b) OVERSIGHT INDEPENDENCE.—Section 8G(a)(4) of 
the Inspector General Act of 1978 (5 U.S.C. App.) is 
amended— 
(1) in subparagraph (H), by striking ‘‘; and’’ 
and inserting a semicolon; 
(2) in subparagraph (I), by striking the semi-
colon and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(J) with respect to the United States Inter-
national Development Finance Corporation, such 
term means the Board of Directors of the United 
States International Development Finance Cor-
poration;’’. 
SEC. 1415. INDEPENDENT ACCOUNTABILITY MECHANISM. 
(a) IN GENERAL.—The Board shall establish a trans-
parent and independent accountability mechanism.
782 
(b) FUNCTIONS.—The independent accountability 
mechanism established pursuant to subsection (a) shall— 
(1) annually evaluate and report to the Board 
and Congress regarding compliance with environ-
mental, social, labor, human rights, and transparency 
standards, consistent with Corporation statutory 
mandates; 
(2) provide a forum for resolving concerns re-
garding the impacts of specific Corporation-supported 
projects with respect to such standards; and 
(3) 
provide 
advice 
regarding 
Corporation 
projects, policies, and practices. 
TITLE II—AUTHORITIES 
SEC. 1421. AUTHORITIES RELATING TO PROVISION OF SUP-
PORT. 
(a) IN GENERAL.—The authorities in this title shall 
only be exercised to— 
(1) carry out of the policy of the United States 
in section 1411 and the purpose of the Corporation in 
section 1412; 
(2) mitigate risks to United States taxpayers by 
sharing risks with the private sector and qualifying 
sovereign entities through co-financing and struc-
turing of tools; and
783 
(3) ensure that support provided under this title 
is additional to private sector resources by mobilizing 
private capital that would otherwise not be deployed 
without such support. 
(b) LENDING AND GUARANTIES.— 
(1) IN GENERAL.—The Corporation may make 
loans or guaranties upon such terms and conditions 
as the Corporation may determine. 
(2) 
DENOMINATION.—Loans 
and 
guaranties 
issued under paragraph (1) may be denominated and 
repayable in United States dollars or foreign cur-
rencies. Foreign currency denominated loans and 
guaranties should only be provided if the Board deter-
mines there is a substantive policy rationale for such 
loans and guaranties. 
(3) APPLICABILITY OF FEDERAL CREDIT REFORM 
ACT OF 1990.—Loans and guaranties issued under 
paragraph (1) shall be subject to the requirements of 
the Federal Credit Reform Act of 1990 (2 U.S.C. 661 
et seq.). 
(c) EQUITY INVESTMENTS.— 
(1) IN GENERAL.—The Corporation may, as a 
minority investor, support projects with funds or use 
other mechanisms for the purpose of purchasing, and 
may make and fund commitments to purchase, invest
784 
in, make pledges in respect of, or otherwise acquire, 
equity or quasi-equity securities or shares or financial 
interests of any entity, including as a limited partner 
or other investor in investment funds, upon such 
terms and conditions as the Corporation may deter-
mine. 
(2) DENOMINATION.—Support provided under 
paragraph (1) may be denominated and repayable in 
United States dollars or foreign currency. Foreign 
currency denominated support provided by paragraph 
(1) should only be provided if the Board determines 
there is a substantive policy rationale for such sup-
port. 
(3) GUIDELINES AND CRITERIA.—The Corpora-
tion shall develop guidelines and criteria to require 
that the use of the authority provided by paragraph 
(1) with respect to a project has a clearly defined de-
velopment and foreign policy purpose, taking into ac-
count the following objectives: 
(A) The support for the project would be 
more likely than not to substantially reduce or 
overcome the effect of an identified market fail-
ure in the country in which the project is carried 
out.
785 
(B) The project would not have proceeded or 
would have been substantially delayed without 
the support. 
(C) The support would meaningfully con-
tribute to transforming local conditions to pro-
mote the development of markets. 
(D) The support can be shown to be aligned 
with commercial partner incentives. 
(E) The support can be shown to have sig-
nificant developmental impact and will con-
tribute to long-term commercial sustainability. 
(F) The support furthers the policy of the 
United States described in section 1411. 
(4) LIMITATIONS ON EQUITY INVESTMENTS.— 
(A) PER
PROJECT
LIMIT.—The aggregate 
amount of support provided under this sub-
section with respect to any project shall not ex-
ceed 30 percent of the aggregate amount of all eq-
uity investment made to the project at the time 
that the Corporation approves support of the 
project. 
(B) TOTAL LIMIT.—Support provided pur-
suant to this subsection shall be limited to not 
more than 35 percent of the Corporation’s aggre-
786 
gate exposure on the date that such support is 
provided. 
(5) SALES AND LIQUIDATION OF POSITION.—The 
Corporation shall seek to sell and liquidate any sup-
port for a project provided under this subsection as 
soon as commercially feasible, commensurate with 
other similar investors in the project and taking into 
consideration the national security interests of the 
United States. 
(6) TIMETABLE.—The Corporation shall create a 
project-specific timetable for support provided under 
paragraph (1). 
(d) INSURANCE AND REINSURANCE.—The Corporation 
may issue insurance or reinsurance, upon such terms and 
conditions as the Corporation may determine, to private 
sector entities and qualifying sovereign entities assuring 
protection of their investments in whole or in part against 
any or all political risks such as currency inconvertibility 
and transfer restrictions, expropriation, war, terrorism, 
civil disturbance, breach of contract, or nonhonoring of fi-
nancial obligations. 
(e) PROMOTION OF AND SUPPORT FOR PRIVATE IN-
VESTMENT OPPORTUNITIES.— 
(1) IN GENERAL.—In order to carry out the pur-
pose of the Corporation described in section 1412(b),
787 
the Corporation may initiate and support, through fi-
nancial participation, incentive grant, or otherwise, 
and on such terms and conditions as the Corporation 
may determine, feasibility studies for the planning, 
development, and management of, and procurement 
for, potential bilateral and multilateral development 
projects eligible for support under this title, including 
training activities undertaken in connection with 
such projects, for the purpose of promoting investment 
in such projects and the identification, assessment, 
surveying, and promotion of private investment op-
portunities, utilizing wherever feasible and effective, 
the facilities of private investors. 
(2) CONTRIBUTIONS
TO
COSTS.—The Corpora-
tion shall, to the maximum extent practicable, require 
any person receiving funds under the authorities of 
this subsection to— 
(A) share the costs of feasibility studies and 
other project planning services funded under this 
subsection; and 
(B) reimburse the Corporation those funds 
provided under this section, if the person suc-
ceeds in project implementation. 
(f) SPECIAL PROJECTS AND PROGRAMS.—The Cor-
poration may administer and manage special projects and
788 
programs in support of specific transactions undertaken by 
the Corporation, including programs of financial and advi-
sory support that provide private technical, professional, or 
managerial assistance in the development of human re-
sources, skills, technology, capital savings, or intermediate 
financial and investment institutions or cooperatives, and 
including the initiation of incentives, grants, or studies for 
energy, women’s economic empowerment, microenterprise 
households, or other small business activities. 
(g) ENTERPRISE FUNDS.— 
(1) IN
GENERAL.—The Corporation may, fol-
lowing consultation with the Secretary of State, the 
Administrator of the United States Agency for Inter-
national Development, and the heads of other relevant 
departments or agencies, establish and operate enter-
prise funds in accordance with this subsection. 
(2) PRIVATE CHARACTER OF FUNDS.—Nothing 
in this section shall be construed to make an enter-
prise fund an agency or establishment of the United 
States Government, or to make the officers, employees, 
or members of the Board of Directors of an enterprise 
fund officers or employees of the United States for 
purposes of title 5, United States Code. 
(3) PURPOSES
FOR
WHICH
SUPPORT
MAY
BE 
PROVIDED.—The Corporation, subject to the approval
789 
of the Board, may designate private, nonprofit orga-
nizations as eligible to receive support under this title 
for the following purposes: 
(A) To promote development of economic 
freedom and private sectors, including small- 
and medium-sized enterprises and joint ventures 
with the United States and host country partici-
pants. 
(B) To facilitate access to credit to small- 
and medium-sized enterprises with sound busi-
ness plans in countries where there is limited 
means of accessing credit on market terms. 
(C) To promote policies and practices con-
ducive to economic freedom and private sector 
development. 
(D) To attract foreign direct investment 
capital to further promote private sector develop-
ment and economic freedom. 
(E) To complement the work of the United 
States Agency for International Development 
and other donors to improve the overall business- 
enabling environment, financing the creation 
and expansion of the private business sector. 
(F) To make financially sustainable invest-
ments designed to generate measurable social
790 
benefits and build technical capacity in addition 
to financial returns. 
(4) OPERATION OF FUNDS.— 
(A) EXPENDITURES.—Funds made avail-
able to an enterprise fund shall be expended at 
the minimum rate necessary to make timely 
payments for projects and activities carried out 
under this subsection. 
(B) ADMINISTRATIVE EXPENSES.—Not more 
than 3 percent per annum of the funds made 
available to an enterprise fund may be obligated 
or expended for the administrative expenses of 
the enterprise fund. 
(5) BOARD
OF
DIRECTORS.—Each enterprise 
fund established under this subsection should be gov-
erned by a Board of Directors comprised of private 
citizens of the United States or the host country, 
who— 
(A) shall be appointed by the President 
after consultation with the chairmen and rank-
ing members of the appropriate congressional 
committees; and 
(B) have pursued careers in international 
business and have demonstrated expertise in
791 
international and emerging market investment 
activities. 
(6) MAJORITY
MEMBER
REQUIREMENT.—The 
majority of the members of the Board of Directors 
shall be United States citizens who shall have relevant 
experience relating to the purposes described in para-
graph (3). 
(7) REPORTS.—Not later than one year after the 
date of the establishment of an enterprise fund under 
this subsection, and annually thereafter until the en-
terprise fund terminates in accordance with para-
graph (10), the Board of Directors of the enterprise 
fund shall— 
(A) submit to the appropriate congressional 
committees a report— 
(i) detailing the administrative ex-
penses of the enterprise fund during the 
year preceding the submission of the report; 
(ii) describing the operations, activi-
ties, engagement with civil society and rel-
evant local private sector entities, develop-
ment objectives and outcomes, financial con-
dition, and accomplishments of the enter-
prise fund during that year;
792 
(iii) describing the results of any audit 
conducted under paragraph (8); and 
(iv) describing how audits conducted 
under paragraph (8) are informing the op-
erations and activities of the enterprise 
fund; and 
(B) publish, on a publicly available internet 
website of the enterprise fund, each report re-
quired by subparagraph (A). 
(8) OVERSIGHT.— 
(A) INSPECTOR
GENERAL
PERFORMANCE 
AUDITS.— 
(i) IN GENERAL.—The Inspector Gen-
eral of the Corporation shall conduct peri-
odic audits of the activities of each enter-
prise fund established under this subsection. 
(ii) CONSIDERATION.—In conducting 
an audit under clause (i), the Inspector 
General shall assess whether the activities of 
the enterprise fund— 
(I) support the purposes described 
in paragraph (3); 
(II) result in profitable private 
sector investing; and
793 
(III) generate measurable social 
benefits. 
(B) RECORDKEEPING REQUIREMENTS.—The 
Corporation shall ensure that each enterprise 
fund receiving support under this subsection— 
(i) keeps separate accounts with respect 
to such support; and 
(ii) maintains such records as may be 
reasonably necessary to facilitate effective 
audits under this paragraph. 
(9) RETURN
OF
FUNDS
TO
TREASURY.—Any 
funds resulting from any liquidation, dissolution, or 
winding up of an enterprise fund, in whole or in 
part, shall be returned to the Treasury of the United 
States. 
(10) TERMINATION.—The authority of an enter-
prise fund to provide support under this subsection 
shall terminate on the earlier of— 
(A) the date that is 10 years after the date 
of the first expenditure of amounts from the en-
terprise fund; or 
(B) the date on which the enterprise fund is 
liquidated.
794 
(h) SUPERVISION
OF SUPPORT.—Support provided 
under this title shall be subject to section 622(c) of the For-
eign Assistance Act of 1961 (22 U.S.C. 2382(c)). 
(i) SMALL BUSINESS DEVELOPMENT.— 
(1) IN GENERAL.—The Corporation shall under-
take, in cooperation with appropriate departments, 
agencies, and instrumentalities of the United States 
as well as private entities and others, to broaden the 
participation of United States small businesses and 
cooperatives and other small United States investors 
in the development of small private enterprise in less 
developed friendly countries or areas. 
(2) 
OUTREACH
TO
MINORITY-OWNED
AND 
WOMEN-OWNED BUSINESSES.— 
(A) IN
GENERAL.—The Corporation shall 
collect data on the involvement of minority- and 
women-owned businesses in projects supported by 
the Corporation, including— 
(i) the amount of insurance and fi-
nancing provided by the Corporation to 
such businesses in connection with projects 
supported by the Corporation; and 
(ii) to the extent such information is 
available, the involvement of such businesses
795 
in procurement activities conducted or sup-
ported by the Corporation. 
(B) INCLUSION IN ANNUAL REPORT.—The 
Corporation shall include, in its annual report 
submitted to Congress under section 1443, the 
aggregate data collected under this paragraph, in 
such form as to quantify the effectiveness of the 
Corporation’s outreach activities to minority- 
and women-owned businesses. 
SEC. 1422. TERMS AND CONDITIONS. 
(a) IN GENERAL.—Except as provided in subsection 
(b), support provided by the Corporation under this title 
shall be on such terms and conditions as the Corporation 
may prescribe. 
(b) REQUIREMENTS.—The following requirements 
apply to support provided by the Corporation under this 
title: 
(1) The Corporation shall provide support using 
authorities under this title only if it is necessary— 
(A) to alleviate a credit market imperfec-
tion; or 
(B) to achieve specified development or for-
eign policy objectives of the United States Gov-
ernment by providing support in the most effi-
796 
cient way to meet those objectives on a case-by- 
case basis. 
(2) The final maturity of a loan made or guar-
anteed by the Corporation shall not exceed the lesser 
of— 
(A) 25 years; or 
(B) debt servicing capabilities of the project 
to be financed by the loan (as determined by the 
Corporation). 
(3) The Corporation shall, with respect to pro-
viding any loan guaranty to a project, require the 
parties to the project to bear the risk of loss in an 
amount equal to at least 20 percent of the guaranteed 
support by the Corporation in the project. 
(4) The Corporation may not make or guarantee 
a loan unless the Corporation determines that the bor-
rower or lender is responsible and that adequate pro-
vision is made for servicing the loan on reasonable 
terms and protecting the financial interest of the 
United States. 
(5) The interest rate for direct loans and interest 
supplements on guaranteed loans shall be set by ref-
erence to a benchmark interest rate (yield) on market-
able Treasury securities or other widely recognized or 
appropriate benchmarks with a similar maturity to
797 
the loans being made or guaranteed, as determined in 
consultation with the Director of the Office of Man-
agement and Budget and the Secretary of the Treas-
ury. The Corporation shall establish appropriate min-
imum interest rates for loans, guaranties, and other 
instruments as necessary. 
(6) The minimum interest rate for new loans as 
established by the Corporation shall be adjusted peri-
odically to take account of changes in the interest rate 
of the benchmark financial instrument. 
(7)(A) The Corporation shall set fees or pre-
miums for support provided under this title at levels 
that minimize the cost to the Government while sup-
porting achievement of the objectives of support. 
(B) The Corporation shall review fees for loan 
guaranties periodically to ensure that the fees assessed 
on new loan guaranties are at a level sufficient to 
cover the Corporation’s most recent estimates of its 
costs. 
(8) Any loan guaranty provided by the Corpora-
tion shall be conclusive evidence that— 
(A) the guaranty has been properly ob-
tained; 
(B) the loan qualified for the guaranty; and
798 
(C) but for fraud or material misrepresenta-
tion by the holder of the guaranty, the guaranty 
is presumed to be valid, legal, and enforceable. 
(9) The Corporation shall prescribe explicit 
standards for use in periodically assessing the credit 
risk of new and existing direct loans or guaranteed 
loans. 
(10) The Corporation may not make loans or 
loan guaranties except to the extent that budget au-
thority to cover the costs of the loans or guaranties is 
provided in advance in an appropriations Act, as re-
quired by section 504 of the Federal Credit Reform 
Act of 1990 (2 U.S.C. 661c). 
(11) The Corporation shall rely upon specific 
standards to assess the developmental and strategic 
value of projects for which it provides support and 
should only provide the minimum level of support 
necessary in order to support such projects. 
(12) Any loan or loan guaranty made by the 
Corporation should be provided on a senior basis or 
pari passu with other senior debt unless there is a 
substantive policy rationale to provide such support 
otherwise.
799 
SEC. 1423. PAYMENT OF LOSSES. 
(a) PAYMENTS
FOR
DEFAULTS
ON
GUARANTEED 
LOANS.— 
(1) IN GENERAL.—If the Corporation determines 
that the holder of a loan guaranteed by the Corpora-
tion suffers a loss as a result of a default by a bor-
rower on the loan, the Corporation shall pay to the 
holder the percent of the loss, as specified in the guar-
anty contract, after the holder of the loan has made 
such further collection efforts and instituted such en-
forcement proceedings as the Corporation may re-
quire. 
(2) SUBROGATION.—Upon making a payment 
described in paragraph (1), the Corporation shall en-
sure the Corporation will be subrogated to all the 
rights of the recipient of the payment. 
(3) RECOVERY EFFORTS.—The Corporation shall 
pursue recovery from the borrower of the amount of 
any payment made under paragraph (1) with respect 
to the loan. 
(b) LIMITATION ON PAYMENTS.— 
(1) IN GENERAL.—Except as provided by para-
graph (2), compensation for insurance, reinsurance, 
or a guaranty issued under this title shall not exceed 
the dollar value of the tangible or intangible contribu-
tions or commitments made in the project, plus inter-
800 
est, earnings, or profits actually accrued on such con-
tributions or commitments, to the extent provided by 
such insurance, reinsurance, or guaranty. 
(2) EXCEPTION.— 
(A) IN
GENERAL.—The Corporation may 
provide that— 
(i) appropriate adjustments in the in-
sured dollar value be made to reflect the re-
placement cost of project assets; and 
(ii) compensation for a claim of loss 
under insurance of an equity investment 
under section 1421 may be computed on the 
basis of the net book value attributable to 
the equity investment on the date of loss. 
(3) ADDITIONAL LIMITATION.— 
(A) IN GENERAL.—Notwithstanding para-
graph (2)(A)(ii) and except as provided in sub-
paragraph (B), the Corporation shall limit the 
amount of direct insurance and reinsurance 
issued under section 1421 with respect to a 
project so as to require that the insured and its 
affiliates bear the risk of loss for at least 10 per-
cent of the amount of the Corporation’s exposure 
to that insured and its affiliates in the project.
801 
(B) EXCEPTION.—The limitation under 
subparagraph (A) shall not apply to direct in-
surance or reinsurance of loans provided by 
banks or other financial institutions to unrelated 
parties. 
(c) ACTIONS BY ATTORNEY GENERAL.—The Attorney 
General shall take such action as may be appropriate to 
enforce any right accruing to the United States as a result 
of the issuance of any loan or guaranty under this title. 
(d) RULE OF CONSTRUCTION.—Nothing in this section 
shall be construed to preclude any forbearance for the ben-
efit of a borrower that may be agreed upon by the parties 
to a loan guaranteed by the Corporation if budget authority 
for any resulting costs to the United States Government (as 
defined in section 502 of the Federal Credit Reform Act of 
1990 (2 U.S.C. 661a)) is available. 
SEC. 1424. TERMINATION. 
(a) IN GENERAL.—The authorities provided under this 
title terminate on the date that is 7 years after the date 
of the enactment of this Act. 
(b) TERMINATION OF CORPORATION.—The Corpora-
tion shall terminate on the date on which the portfolio of 
the Corporation is liquidated.
802 
TITLE III—ADMINISTRATIVE AND 
GENERAL PROVISIONS 
SEC. 1431. OPERATIONS. 
(a) BILATERAL AGREEMENTS.—The Corporation may 
provide support under title II in connection with projects 
in any country the government of which has entered into 
an agreement with the United States authorizing the Cor-
poration to provide such support in that country. 
(b) CLAIMS SETTLEMENT.— 
(1) IN GENERAL.—Claims arising as a result of 
support provided under title II or under predecessor 
authority may be settled, and disputes arising as a 
result thereof may be arbitrated with the consent of 
the parties, on such terms and conditions as the Cor-
poration may determine. 
(2) SETTLEMENTS CONCLUSIVE.—Payment made 
pursuant to any settlement pursuant to paragraph 
(1), or as a result of an arbitration award, shall be 
final and conclusive notwithstanding any other provi-
sion of law. 
(c) PRESUMPTION OF COMPLIANCE.—Each contract 
executed by such officer or officers as may be designated 
by the Board shall be conclusively presumed to be issued 
in compliance with the requirements of this division.
803 
(d) ELECTRONIC PAYMENTS AND DOCUMENTS.—The 
Corporation shall implement policies to accept electronic 
documents and electronic payments in all of its programs. 
SEC. 1432. CORPORATE POWERS. 
(a) IN GENERAL.—The Corporation— 
(1) may adopt, alter, and use a seal, to include 
an identifiable symbol of the United States; 
(2) may make and perform such contracts, in-
cluding no-cost contracts (as defined by the Corpora-
tion), grants, and other agreements notwithstanding 
division C of subtitle I of title 41, United States Code, 
with any person or government however designated 
and wherever situated, as may be necessary for car-
rying out the functions of the Corporation; 
(3) may lease, purchase, or otherwise acquire, 
improve, and use such real property wherever situ-
ated, as may be necessary for carrying out the func-
tions of the Corporation, except that, if the real prop-
erty is for the Corporation’s own occupancy, the lease, 
purchase, acquisition, improvement, or use of the real 
property shall be entered into or conducted in con-
sultation with the Administrator of General Services; 
(4) may accept cash gifts or donations of services 
or of property (real, personal, or mixed), tangible or
804 
intangible, for the purpose of carrying out the func-
tions of the Corporation; 
(5) may use the United States mails in the same 
manner and on the same conditions as the Executive 
departments (as defined in section 101 of title 5, 
United States Code); 
(6) may contract with individuals for personal 
services, who shall not be considered Federal employ-
ees for any provision of law administered by the Di-
rector of the Office of Personnel Management; 
(7) may hire or obtain passenger motor vehicles; 
(8) may sue and be sued in its corporate name; 
(9) may acquire, hold, or dispose of, upon such 
terms and conditions as the Corporation may deter-
mine, any property, real, personal, or mixed, tangible 
or intangible, or any interest in such property, except 
that, in the case of real property that is for the Cor-
poration’s own occupancy, the acquisition, holding, or 
disposition of the real property shall be conducted in 
consultation with the Administrator of General Serv-
ices; 
(10) may lease office space for the Corporation’s 
own use, with the obligation of amounts for such lease 
limited to the current fiscal year for which payments 
are due until the expiration of the current lease under
805 
predecessor authority, as of the day before the date of 
the enactment of this Act; 
(11) may indemnify directors, officers, employ-
ees, and agents of the Corporation for liabilities and 
expenses incurred in connection with their activities 
on behalf of the Corporation; 
(12) notwithstanding any other provision of law, 
may represent itself or contract for representation in 
any legal or arbitral proceeding; 
(13) may exercise any priority of the Govern-
ment of the United States in collecting debts from 
bankrupt, insolvent, or decedents’ estates; 
(14) 
may 
collect, 
notwithstanding 
section 
3711(g)(1) of title 31, United States Code, or com-
promise any obligations assigned to or held by the 
Corporation, including any legal or equitable rights 
accruing to the Corporation; 
(15) may make arrangements with foreign gov-
ernments (including agencies, instrumentalities, or 
political subdivisions of such governments) or with 
multilateral organizations or institutions for sharing 
liabilities; 
(16) may sell direct investments of the Corpora-
tion to private investors upon such terms and condi-
tions as the Corporation may determine; and
806 
(17) shall have such other powers as may be nec-
essary and incident to carrying out the functions of 
the Corporation. 
(b) TREATMENT OF PROPERTY.—Notwithstanding any 
other provision of law relating to the acquisition, handling, 
or disposal of property by the United States, the Corpora-
tion shall have the right in its discretion to complete, recon-
dition, reconstruct, renovate, repair, maintain, operate, or 
sell any property acquired by the Corporation pursuant to 
the provisions of this division, except that, in the case of 
real property that is for the Corporation’s own occupancy, 
the completion, reconditioning, reconstruction, renovation, 
repair, maintenance, operation, or sale of the real property 
shall be conducted in consultation with the Administrator 
of General Services. 
SEC. 1433. MAXIMUM CONTINGENT LIABILITY. 
The maximum contingent liability of the Corporation 
outstanding at any one time shall not exceed in the aggre-
gate $60,000,000,000. 
SEC. 1434. CORPORATE FUNDS. 
(a) CORPORATE CAPITAL ACCOUNT.—There is estab-
lished in the Treasury of the United States a fund to be 
known as the ‘‘Corporate Capital Account’’ to carry out the 
purposes of the Corporation.
807 
(b) FUNDING.—The Corporate Capital Account shall 
consist of— 
(1) fees charged and collected pursuant to sub-
section (c); 
(2) any amounts received pursuant to subsection 
(e); 
(3) investments and returns on such investments 
pursuant to subsection (g); 
(4) unexpended balances transferred to the Cor-
poration pursuant to subsection (i); 
(5) payments received in connection with settle-
ments of all insurance and reinsurance claims of the 
Corporation; and 
(6) all other collections transferred to or earned 
by the Corporation, excluding the cost, as defined in 
section 502 of the Federal Credit Reform Act of 1990 
(2 U.S.C. 661a), of loans and loan guaranties. 
(c) FEE AUTHORITY.—Fees may be charged and col-
lected for providing services in amounts to be determined 
by the Corporation. 
(d) USES.— 
(1) IN GENERAL.—Subject to Acts making ap-
propriations, the Corporation is authorized to pay—
808 
(A) the cost, as defined in section 502 of the 
Federal Credit Reform Act of 1990, of loans and 
loan guaranties; 
(B) administrative expenses of the Corpora-
tion; 
(C) for the cost of providing support author-
ized by subsections (c), (e), (f), and (g) of section 
1421; 
(D) project-specific transaction costs. 
(2) INCOME AND REVENUE.—In order to carry 
out the purposes of the Corporation, all collections 
transferred to or earned by the Corporation, excluding 
the cost, as defined in section 502 of the Federal Cred-
it Reform Act of 1990, of loans and loan guaranties, 
shall be deposited into the Corporate Capital Account 
and shall be available to carry out its purpose, in-
cluding without limitation— 
(A) payment of all insurance and reinsur-
ance claims of the Corporation; 
(B) repayments to the Treasury of amounts 
borrowed under subsection (e); and 
(C) dividend payments to the Treasury 
under subsection (f). 
(e) FULL FAITH AND CREDIT.—
809 
(1) IN GENERAL.—All support provided pursu-
ant to predecessor authorities or title II shall continue 
to constitute obligations of the United States, and the 
full faith and credit of the United States is hereby 
pledged for the full payment and performance of such 
obligations. 
(2) AUTHORITY TO BORROW.—The Corporation 
is authorized to borrow from the Treasury such sums 
as may be necessary to fulfill such obligations of the 
United States and any such borrowing shall be at a 
rate determined by the Secretary of the Treasury, tak-
ing into consideration the current average market 
yields on outstanding marketable obligations of the 
United States of comparable maturities, for a period 
jointly determined by the Corporation and the Sec-
retary, and subject to such terms and conditions as 
the Secretary may require. 
(f) DIVIDENDS.—The Board, in consultation with the 
Director of the Office of Management and Budget, shall an-
nually assess a dividend payment to the Treasury if the 
Corporation’s insurance portfolio is more than 100 percent 
reserved. 
(g) INVESTMENT AUTHORITY.— 
(1) IN GENERAL.—The Corporation may request 
the Secretary of the Treasury to invest such portion
810 
of the Corporate Capital Account as is not, in the 
Corporation’s judgment, required to meet the current 
needs of the Corporate Capital Account. 
(2) FORM OF INVESTMENTS.—Such investments 
shall be made by the Secretary of the Treasury in 
public debt obligations, with maturities suitable to the 
needs of the Corporate Capital Account, as deter-
mined by the Corporation, and bearing interest at 
rates determined by the Secretary, taking into consid-
eration current market yields on outstanding market-
able obligations of the United States of comparable 
maturities. 
(h) COLLECTIONS.—Interest earnings made pursuant 
to subsection (g), earnings collected related to equity invest-
ments, and amounts, excluding fees related to insurance or 
reinsurance, collected pursuant to subsection (c), shall not 
be collected for any fiscal year except to the extent provided 
in advance in appropriations Acts. 
(i) TRANSFER FROM PREDECESSOR AGENCIES AND 
PROGRAMS.—By the end of the transition period described 
in title VI, the unexpended balances, assets, and responsibil-
ities of any agency specified in the plan required by section 
1462 shall be transferred to the Corporation. 
(j) TRANSFER OF FUNDS.—In order to carry out this 
division, funds authorized to be appropriated to carry out
811 
the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) 
may be transferred to the Corporation and funds authorized 
to be appropriated to the Corporation may be transferred 
to the Department of State and the United States Agency 
for International Development. 
(k) DEFINITION.—In this section, the term ‘‘project- 
specific transaction costs’’— 
(1) means those costs incurred by the Corpora-
tion for travel, legal expenses, and direct and indirect 
costs incurred in claims settlements associated with 
the provision of support under title II and shall not 
be considered administrative expenses for the purposes 
of this section; and 
(2) does not include information technology (as 
such term is defined in section 11101 of title 40, 
United States Code). 
SEC. 1435. COORDINATION WITH OTHER DEVELOPMENT 
AGENCIES. 
It is the sense of Congress that the Corporation should 
use relevant data of the Department of State, the Millen-
nium Challenge Corporation, the United States Agency for 
International Development, and other departments and 
agencies that have development functions to better inform 
the decisions of the Corporation with respect to providing 
support under title II.
812 
TITLE IV—MONITORING, 
EVALUATION, AND REPORTING 
SEC. 1441. ESTABLISHMENT OF RISK AND AUDIT COMMIT-
TEES. 
(a) IN GENERAL.—To assist the Board to fulfill its du-
ties and responsibilities under section 1421(a), the Corpora-
tion shall establish a risk committee and an audit com-
mittee. 
(b) DUTIES AND RESPONSIBILITIES OF RISK COM-
MITTEE.—Subject to the direction of the Board, the risk 
committee established under subsection (a) shall have over-
sight responsibility of— 
(1) formulating risk management policies of the 
operations of the Corporation; 
(2) reviewing and providing guidance on oper-
ation of the Corporation’s global risk management 
framework; 
(3) developing policies for enterprise risk man-
agement, monitoring, and management of strategic, 
reputational, regulatory, operational, developmental, 
environmental, social, and financial risks; 
(4) developing the risk profile of the Corporation, 
including a risk management and compliance frame-
work and governance structure to support such frame-
work; and
813 
(5) developing policies and procedures for assess-
ing, prior to providing, and for any period during 
which the Corporation provides, support to any for-
eign entities, whether such entities have in place suffi-
cient enhanced due diligence policies and practices to 
prevent money laundering and corruption to ensure 
the Corporation does not provide support to persons 
that are— 
(A) knowingly engaging in acts of corrup-
tion; 
(B) knowingly providing material or finan-
cial support for terrorism, drug trafficking, or 
human trafficking; or 
(C) responsible for ordering or otherwise di-
recting serious or gross violations of human 
rights. 
(c) DUTIES AND RESPONSIBILITIES OF AUDIT COM-
MITTEE.—Subject to the direction of the Board, the audit 
committee established under subsection (a) shall have the 
oversight responsibility of— 
(1) the integrity of the Corporation’s financial 
reporting and systems of internal controls regarding 
finance and accounting; 
(2) the integrity of the Corporation’s financial 
statements;
814 
(3) the performance of the Corporation’s internal 
audit function; and 
(4) compliance with legal and regulatory re-
quirements related to the finances of the Corporation. 
SEC. 1442. PERFORMANCE MEASURES, EVALUATION, AND 
LEARNING. 
(a) IN GENERAL.—The Corporation shall develop a 
performance measurement system to evaluate and monitor 
projects supported by the Corporation under title II and 
to guide future projects of the Corporation. 
(b) CONSIDERATIONS.—In developing the performance 
measurement system required by subsection (a), the Cor-
poration shall— 
(1) develop a successor for the development im-
pact measurement system of the Overseas Private In-
vestment Corporation (as such system was in effect on 
the day before the date of the enactment of this Act); 
(2) develop a mechanism for ensuring that sup-
port provided by the Corporation under title II is in 
addition to private investment; 
(3) develop standards for, and a method for en-
suring, appropriate financial performance of the Cor-
poration’s portfolio; and
815 
(4) develop standards for, and a method for en-
suring, appropriate development performance of the 
Corporation’s portfolio, including— 
(A) measurement of the projected and ex 
post development impact of a project; and 
(B) the information necessary to comply 
with section 1443. 
(c) PUBLIC AVAILABILITY
OF CERTAIN INFORMA-
TION.—The Corporation shall make available to the public 
on a regular basis information about support provided by 
the Corporation under title II and performance metrics 
about such support on a country-by-country basis. 
(d) CONSULTATION.—In developing the performance 
measurement system required by subsection (a), the Cor-
poration shall consult with the Development Advisory 
Council established under section 1413(i) and other stake-
holders and interested parties engaged in sustainable eco-
nomic growth and development. 
SEC. 1443. ANNUAL REPORT. 
(a) IN GENERAL.—After the end of each fiscal year, 
the Corporation shall submit to the appropriate congres-
sional committees a complete and detailed report of its oper-
ations during that fiscal year, including an assessment of— 
(1) the economic and social development impact, 
including with respect to matters described in sub-
816 
sections (d), (e), and (f) of section 1451, of projects 
supported by the Corporation under title II; 
(2) the extent to which the operations of the Cor-
poration complement or are compatible with the de-
velopment assistance programs of the United States 
and qualifying sovereign entities; 
(3) the Corporation’s institutional linkages with 
other relevant United States Government department 
and agencies, including efforts to strengthen such 
linkages; and 
(4) the compliance of projects supported by the 
Corporation under title II with human rights, envi-
ronmental, labor, and social policies, or other such re-
lated policies that govern the Corporation’s support 
for projects, promulgated or otherwise administered 
by the Corporation. 
(b) ELEMENTS.—Each annual report required by sub-
section (a) shall include analyses of the effects of projects 
supported by the Corporation under title II, including— 
(1) reviews and analyses of— 
(A) the desired development outcomes for 
projects and whether or not the Corporation is 
meeting the associated metrics, goals, and devel-
opment objectives, including, to the extent prac-
817 
ticable, in the years after conclusion of projects; 
and 
(B) the effect of the Corporation’s support 
on access to capital and ways in which the Cor-
poration is addressing identifiable market gaps 
or inefficiencies and what impact, if any, such 
support has on access to credit for a specific 
project, country, or sector; 
(2) an explanation of any partnership arrange-
ment or cooperation with a qualifying sovereign enti-
ty in support of each project; 
(3) projections of— 
(A) development outcomes, and whether or 
not support for projects are meeting the associ-
ated performance measures, both during the 
start-up phase and over the duration of the sup-
port, and to the extent practicable, measures of 
such development outcomes should be on a gen-
der-disaggregated basis, such as changes in em-
ployment, access to financial services, enterprise 
development and growth, and composition of ex-
ecutive boards and senior leadership of enter-
prises receiving support under title II; and 
(B) the value of private sector assets 
brought to bear relative to the amount of support
818 
provided by the Corporation and the value of 
any other public sector support; and 
(4) an assessment of the extent to which lessons 
learned from the monitoring and evaluation activities 
of the Corporation, and from annual reports from 
previous years compiled by the Corporation, have 
been applied to projects. 
SEC. 1444. PUBLICLY AVAILABLE PROJECT INFORMATION. 
The Corporation shall— 
(1) maintain a user-friendly, publicly available, 
machine-readable database with detailed project-level 
information, as appropriate and to the extent prac-
ticable, including a description of the support pro-
vided by the Corporation under title II, including, to 
the extent feasible, the information included in the re-
port to Congress under section 1443 and project-level 
performance metrics; and 
(2) include a clear link to information about 
each project supported by the Corporation under title 
II on the internet website of the Department of State, 
‘‘ForeignAssistance.gov’’, or a successor website or 
other online publication. 
SEC. 1445. ENGAGEMENT WITH INVESTORS. 
(a) IN GENERAL.—The Corporation, acting through 
the Chief Development Officer, shall, in cooperation with
819 
the Administrator of the United States Agency for Inter-
national Development— 
(1) develop a strategic relationship with private 
sector entities focused at the nexus of business oppor-
tunities and development priorities; 
(2) engage such entities and reduce business risks 
primarily through direct transaction support and fa-
cilitating investment partnerships; 
(3) develop and support tools, approaches, and 
intermediaries that can mobilize private finance at 
scale in the developing world; 
(4) pursue highly developmental projects of all 
sizes, especially those that are small but designed for 
work in the most underdeveloped areas, including 
countries with chronic suffering as a result of extreme 
poverty, fragile institutions, or a history of violence; 
and 
(5) pursue projects consistent with the policy of 
the United States described in section 1411 and the 
Joint Strategic Plan and the Mission Country Devel-
opment Cooperation Strategies of the United States 
Agency for International Development. 
(b) ASSISTANCE.—To achieve the goals described in 
subsection (a), the Corporation shall— 
(1) develop risk mitigation tools;
820 
(2) provide transaction structuring support for 
blended finance models; 
(3) support intermediaries linking capital sup-
ply and demand; 
(4) coordinate with other Federal agencies to 
support or accelerate transactions; 
(5) convene financial, donor, civil society, and 
public sector partners around opportunities for pri-
vate finance within development priorities; 
(6) offer strategic planning and programming 
assistance to catalyze investment into priority sectors; 
(7) provide transaction structuring support; 
(8) deliver training and knowledge management 
tools for engaging private investors; 
(9) partner with private sector entities that pro-
vide access to capital and expertise; and 
(10) identify and screen new investment part-
ners. 
(c) TECHNICAL ASSISTANCE.—The Corporation shall 
coordinate with the United States Agency for International 
Development and other agencies and departments, as nec-
essary, on projects and programs supported by the Corpora-
tion that include technical assistance.
821 
SEC. 1446. NOTIFICATIONS TO BE PROVIDED BY THE COR-
PORATION. 
(a) IN GENERAL.—Not later than 15 days prior to the 
Corporation making a financial commitment associated 
with the provision of support under title II in an amount 
in excess of $10,000,000, the Chief Executive Officer of the 
Corporation shall submit to the appropriate congressional 
committees a report in writing that contains the informa-
tion required by subsection (b). 
(b) INFORMATION REQUIRED.—The information re-
quired by this subsection includes— 
(1) the amount of each such financial commit-
ment; 
(2) an identification of the recipient or bene-
ficiary; and 
(3) a description of the project, activity, or asset 
and the development goal or purpose to be achieved 
by providing support by the Corporation. 
(c) BILATERAL AGREEMENTS.—The Chief Executive 
Officer of the Corporation shall notify the appropriate con-
gressional committees not later than 30 days after entering 
into a new bilateral agreement described in section 1431(a).
822 
TITLE V—CONDITIONS, RESTRIC-
TIONS, AND PROHIBITIONS 
SEC. 1451. LIMITATIONS AND PREFERENCES. 
(a) LIMITATION ON SUPPORT FOR SINGLE ENTITY.— 
No entity receiving support from the Corporation under 
title II may receive more than an amount equal to 5 percent 
of the Corporation’s maximum contingent liability author-
ized under section 1433. 
(b) PREFERENCE FOR SUPPORT FOR PROJECTS SPON-
SORED BY UNITED STATES PERSONS.— 
(1) IN GENERAL.—The Corporation should give 
preferential consideration to projects sponsored by or 
involving private sector entities that are United 
States persons. 
(2) UNITED STATES PERSON DEFINED.—In this 
subsection, the term ‘‘United States person’’ means— 
(A) a United States citizen; or 
(B) an entity owned or controlled by an in-
dividual or individuals described in subpara-
graph (A). 
(c) PREFERENCE
FOR SUPPORT
IN COUNTRIES
IN 
COMPLIANCE
WITH
INTERNATIONAL
TRADE
OBLIGA-
TIONS.— 
(1) CONSULTATIONS
WITH
UNITED
STATES 
TRADE REPRESENTATIVE.—Not less frequently than
823 
annually, the Corporation shall consult with the 
United States Trade Representative with respect to 
the status of countries eligible to receive support from 
the Corporation under title II and the compliance of 
those countries with their international trade obliga-
tions. 
(2) PREFERENTIAL CONSIDERATION.—The Cor-
poration shall give preferential consideration to pro-
viding support under title II for projects in countries 
in compliance with or making substantial progress 
coming into compliance with their international 
trade obligations. 
(d) WORKER RIGHTS.— 
(1) IN GENERAL.—The Corporation shall only 
support projects under title II in countries that are 
taking steps to adopt and implement laws that extend 
internationally recognized worker rights (as defined 
in section 507 of the Trade Act of 1974 (19 U.S.C. 
2467)) to workers in that country, including any des-
ignated zone in that country. 
(2) REQUIRED CONTRACT LANGUAGE.—The Cor-
poration shall also include the following language, in 
substantially the following form, in all contracts 
which the Corporation enters into with persons receiv-
ing support under title II: ‘‘The person receiving sup-
824 
port agrees not to take actions to prevent employees 
of the foreign enterprise from lawfully exercising their 
right of association and their right to organize and 
bargain collectively. The person further agrees to ob-
serve applicable laws relating to a minimum age for 
employment of children, acceptable conditions of work 
with respect to minimum wages, hours of work, and 
occupational health and safety, and not to use forced 
labor or the worst forms of child labor (as defined in 
section 507 of the Trade Act of 1974 (19 U.S.C. 
2467)). The person is not responsible under this para-
graph for the actions of a foreign government.’’. 
(e) IMPACT NOTIFICATION.—The Board shall not vote 
in favor of any project proposed to be supported by the Cor-
poration under title II that is likely to have significant ad-
verse environmental or social impacts that are sensitive, di-
verse, or unprecedented, unless— 
(1) at least 60 days before the date of the vote, 
an environmental and social impact assessment or 
initial environmental and social audit, analyzing the 
environmental and social impacts of the proposed 
project and of alternatives to the proposed project, in-
cluding mitigation measures, is completed; 
(2) such assessment or audit has been made 
available to the public of the United States, locally af-
825 
fected groups in the country in which the project will 
be carried out, and nongovernmental organizations in 
that country; and 
(3) the Corporation, applying best practices with 
respect to environmental and social safeguards, in-
cludes in any contract relating to the project provi-
sions to ensure the mitigation of any such adverse en-
vironmental or social impacts. 
(f) WOMEN’S ECONOMIC EMPOWERMENT.—In utilizing 
its authorities under title II, the Corporation shall consider 
the impacts of its support on women’s economic opportuni-
ties and outcomes and shall prioritize the reduction of gen-
der gaps and maximize development impact by working to 
improve women’s economic opportunities. 
(g) PREFERENCE
FOR PROVISION
OF SUPPORT
IN 
COUNTRIES EMBRACING PRIVATE ENTERPRISE.— 
(1) IN GENERAL.—The Corporation should give 
preferential consideration to projects for which sup-
port under title II may be provided in countries the 
governments of which have demonstrated consistent 
support for economic policies that promote the devel-
opment of private enterprise, both domestic and for-
eign, and maintaining the conditions that enable pri-
vate enterprise to make a full contribution to the de-
velopment of such countries, including—
826 
(A) market-based economic policies; 
(B) protection of private property rights; 
(C) respect for the rule of law; and 
(D) systems to combat corruption and brib-
ery. 
(2) SOURCES OF INFORMATION.—The Corpora-
tion should rely on both third-party indicators and 
United States Government information, such as the 
Department of State’s Investment Climate State-
ments, the Department of Commerce’s Country Com-
mercial Guides, or the Millennium Challenge Cor-
poration’s Constraints Analysis, to assess whether 
countries meet the conditions described in paragraph 
(1). 
(h) CONSIDERATION OF FOREIGN BOYCOTT PARTICI-
PATION.—In providing support for projects under title II, 
the Corporation shall consider, using information readily 
available, whether the project is sponsored by or substan-
tially affiliated with any person taking or knowingly agree-
ing to take actions, or having taken or knowingly agreed 
to take actions within the past 3 years, which demonstrate 
or otherwise evidence intent to comply with, further, or sup-
port any boycott described in section 1773(a) of the Export 
Control Reform Act of 2018 (subtitle B of title XVII of Pub-
lic Law 115–232).
827 
(i) ENSURING OPPORTUNITIES
FOR SMALL BUSI-
NESSES
IN FOREIGN DEVELOPMENT.—The Corporation 
shall, using broad criteria, make, to the maximum extent 
possible consistent with this division, efforts— 
(1) to give preferential consideration in pro-
viding support under title II to projects sponsored by 
or involving small businesses; and 
(2) to ensure that the proportion of projects 
sponsored by or involving United States small busi-
nesses, including women-, minority-, and veteran- 
owned small businesses, is not less than 50 percent of 
all projects for which the Corporation provides sup-
port and that involve United States persons. 
SEC. 1452. ADDITIONALITY AND AVOIDANCE OF MARKET 
DISTORTION. 
(a) IN GENERAL.—Before the Corporation provides 
support for a project under title II, the Corporation shall 
ensure that private sector entities are afforded an oppor-
tunity to support the project. 
(b) SAFEGUARDS, POLICIES, AND GUIDELINES.—The 
Corporation shall develop appropriate safeguards, policies, 
and guidelines to ensure that support provided by the Cor-
poration under title II— 
(1) supplements and encourages, but does not 
compete with, private sector support;
828 
(2) operates according to internationally recog-
nized best practices and standards with respect to en-
suring the avoidance of market distorting government 
subsidies and the crowding out of private sector lend-
ing; and 
(3) does not have a significant adverse impact 
on United States employment. 
SEC. 1453. PROHIBITION ON SUPPORT IN COUNTRIES THAT 
SUPPORT TERRORISM OR VIOLATE HUMAN 
RIGHTS AND WITH SANCTIONED PERSONS. 
(a) IN GENERAL.—The Corporation is prohibited from 
providing support under title II for a government, or an 
entity owned or controlled by a government, if the Secretary 
of State has determined that the government— 
(1) has repeatedly provided support for acts of 
international terrorism for purposes of— 
(A) section 1754(c)(1)(A)(i) of the Export 
Control Reform Act of 2018 (subtitle B of title 
XVII of Public Law 115–232); 
(B) section 620A(a) of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2371(a)); 
(C) section 40(d) of the Arms Export Con-
trol Act (22 U.S.C. 2780(d)); or 
(D) any other relevant provision of law; or
829 
(2) has engaged in a consistent pattern of gross 
violations of internationally recognized human rights 
for purposes of section 116(a) or 502B(a)(2) of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2151n(a) 
and 2304(a)(2)) or any other relevant provision of 
law. 
(b) PROHIBITION ON SUPPORT OF SANCTIONED PER-
SONS.—The Corporation is prohibited from all dealings re-
lated to any project under title II prohibited under United 
States sanctions laws or regulations, including dealings 
with persons on the list of specially designated persons and 
blocked persons maintained by the Office of Foreign Assets 
Control of the Department of the Treasury, except to the 
extent otherwise authorized by the Secretary of the Treasury 
or the Secretary of State. 
(c) PROHIBITION ON SUPPORT OF ACTIVITIES SUB-
JECT TO SANCTIONS.—The Corporation shall require any 
person receiving support under title II to certify that the 
person, and any entity owned or controlled by the person, 
is in compliance with all United States sanctions laws and 
regulations. 
SEC. 1454. APPLICABILITY OF CERTAIN PROVISIONS OF 
LAW. 
Subsections (g), (l), (m), and (n) of section 237 of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2197) shall
830 
apply with respect to the Corporation to the same extent 
and in the same manner as such subsections applied with 
respect to the Overseas Private Investment Corporation on 
the day before the date of the enactment of this Act. 
TITLE VI—TRANSITIONAL 
PROVISIONS 
SEC. 1461. DEFINITIONS. 
In this title: 
(1) AGENCY.—The term ‘‘agency’’ includes any 
entity, organizational unit, program, or function. 
(2) TRANSITION PERIOD.—The term ‘‘transition 
period’’ means the period— 
(A) beginning on the date of the enactment 
of this Act; and 
(B) ending on the effective date of the reor-
ganization plan required by section 1462(e). 
SEC. 1462. REORGANIZATION PLAN. 
(a) SUBMISSION OF PLAN.— 
(1) IN GENERAL.—Not later than 120 days after 
the date of the enactment of this Act, the President 
shall transmit to the appropriate congressional com-
mittees a reorganization plan regarding the following: 
(A) The transfer of agencies, personnel, as-
sets, and obligations to the Corporation pursuant 
to this title.
831 
(B) Any consolidation, reorganization, or 
streamlining of agencies transferred to the Cor-
poration pursuant to this title. 
(C) Any efficiencies or cost savings achieved 
or additional costs incurred as a result of the 
transfer of agencies, personnel, assets, and obli-
gations to the Corporation pursuant to this title, 
including reductions in unnecessary or duplica-
tive operations, assets, and personnel. 
(2) CONSULTATION.—Not later than 15 days be-
fore the date on which the plan is transmitted pursu-
ant to this subsection, the President shall consult with 
the appropriate congressional committees on such 
plan. 
(b) PLAN ELEMENTS.—The plan transmitted under 
subsection (a) shall contain, consistent with this division, 
such elements as the President deems appropriate, includ-
ing the following: 
(1) Identification of any functions of agencies 
transferred to the Corporation pursuant to this title 
that will not be transferred to the Corporation under 
the plan. 
(2) Specification of the steps to be taken to orga-
nize the Corporation, including the delegation or as-
signment of functions transferred to the Corporation.
832 
(3) Specification of the funds available to each 
agency that will be transferred to the Corporation as 
a result of transfers under the plan. 
(4) Specification of the proposed allocations 
within the Corporation of unexpended funds trans-
ferred in connection with transfers under the plan. 
(5) Specification of any proposed disposition of 
property, facilities, contracts, records, and other assets 
and obligations of agencies transferred under the 
plan. 
(6) Specification of the number of authorized po-
sitions and personnel employed before the end of the 
transition period that will be transferred to the Cor-
poration, including plans to mitigate the impact of 
such transfers on the United States Agency for Inter-
national Development. 
(c) REPORT ON COORDINATION.— 
(1) IN GENERAL.—The transfer of functions au-
thorized by this section may occur only after the 
President and Chief Executive Officer of the Overseas 
Private Investment Corporation and the Adminis-
trator of the United States Agency for International 
Development jointly submit to the Committee on For-
eign Affairs and Committee on Appropriations of the 
House of Representatives and Committee on Foreign
833 
Relations and Committee on Appropriations of the 
Senate a report in writing that contains the informa-
tion required by paragraph (2). 
(2) INFORMATION REQUIRED.—The information 
required by this paragraph includes a description in 
detail of the procedures to be followed after the trans-
fer of functions authorized by this section have oc-
curred to coordinate between the Corporation and the 
United States Agency for International Development 
in carrying out the functions so transferred. 
(d) MODIFICATION OF PLAN.—The President shall con-
sult with the appropriate congressional committees before 
making any material modification or revision to the plan 
before the plan becomes effective in accordance with sub-
section (e). 
(e) EFFECTIVE DATE.— 
(1) IN GENERAL.—The reorganization plan de-
scribed in this section, including any modifications or 
revisions of the plan under subsection (c), shall be-
come effective for an agency on the date specified in 
the plan (or the plan as modified pursuant to sub-
section (d)), except that such date may not be earlier 
than 90 days after the date the President has trans-
mitted the reorganization plan to the appropriate 
congressional committees pursuant to subsection (a).
834 
(2) STATUTORY CONSTRUCTION.—Nothing in this 
subsection may be construed to require the transfer of 
functions, personnel, records, balances of appropria-
tions, or other assets of an agency on a single date. 
SEC. 1463. TRANSFER OF FUNCTIONS. 
(a) IN GENERAL.—Effective at the end of the transi-
tion period, there shall be transferred to the Corporation 
the functions, personnel, assets, and liabilities of— 
(1) the Overseas Private Investment Corporation, 
as in existence on the day before the date of the enact-
ment of this Act; and 
(2) the following elements of the United States 
Agency for International Development: 
(A) The Development Credit Authority. 
(B) The existing Legacy Credit portfolio 
under the Urban Environment Program and any 
other direct loan programs and non-Development 
Credit Authority guaranty programs authorized 
by the Foreign Assistance Act of 1961 (22 U.S.C. 
2151 et seq.) or other predecessor Acts, as in ex-
istence on the date of the enactment of this Act, 
other than any sovereign loan guaranties. 
(b) ADDITIONAL TRANSFER AUTHORITY.—Effective at 
the end of the transition period, there is authorized to be 
transferred to the Corporation, with the concurrence of the
835 
Administrator of the United States Agency for Inter-
national Development, the functions, personnel, assets, and 
liabilities of the following elements of the United States 
Agency for International Development: 
(1) The Office of Private Capital and Microen-
terprise. 
(2) The enterprise funds. 
(c) SOVEREIGN LOAN GUARANTY TRANSFER.— 
(1) IN GENERAL.—Effective at the end of the 
transition period, there is authorized to be transferred 
to the Corporation or any other appropriate depart-
ment or agency of the United States Government the 
loan accounts and the legal rights and responsibilities 
for the sovereign loan guaranty portfolio held by the 
United States Agency for International Development 
as in existence on the day before the date of the enact-
ment of this Act. 
(2) INCLUSION IN REORGANIZATION PLAN.—The 
President shall include in the reorganization plan 
submitted under section 1462 a description of the 
transfer authorized under paragraph (1). 
(d) BILATERAL AGREEMENTS.—Any bilateral agree-
ment of the United States in effect on the date of the enact-
ment of this Act that serves as the basis for programs of 
the Overseas Private Investment Corporation and the Devel-
836 
opment Credit Authority shall be considered as satisfying 
the requirements of section 1431(a). 
(e) TRANSITION.—During the transition period, the 
agencies specified in subsection (a) shall— 
(1) continue to administer the assets and obliga-
tions of those agencies; and 
(2) carry out such programs and activities au-
thorized under this division as may be determined by 
the President. 
SEC. 1464. TERMINATION OF OVERSEAS PRIVATE INVEST-
MENT 
CORPORATION 
AND 
OTHER 
SUPERCEDED AUTHORITIES. 
Effective at the end of the transition period— 
(1) the Overseas Private Investment Corporation 
is terminated; and 
(2) title IV of chapter 2 of part I of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2191 et seq.) (other 
than subsections (g), (l), (m), and (n) of section 237 
of that Act) is repealed. 
SEC. 1465. TRANSITIONAL AUTHORITIES. 
(a) PROVISION OF ASSISTANCE BY OFFICIALS.—Until 
the transfer of an agency to the Corporation under section 
1463, any official having authority over, or functions relat-
ing to, the agency on the day before the date of the enact-
ment of this Act shall provide to the Corporation such as-
837 
sistance, including the use of personnel and assets, as the 
Corporation may request in preparing for the transfer and 
integration of the agency into the Corporation. 
(b) SERVICES AND PERSONNEL.—During the transi-
tion period, upon the request of the Corporation, the head 
of any executive agency may, on a reimbursable or non- 
reimbursable basis, provide services or detail personnel to 
assist with the transition. 
(c) ACTING OFFICIALS.— 
(1) IN GENERAL.—During the transition period, 
pending the advice and consent of the Senate to the 
appointment of an officer required by this division to 
be appointed by and with such advice and consent, 
the President may designate any officer whose ap-
pointment was required to be made by and with such 
advice and consent and who was such an officer be-
fore the end of the transition period (and who con-
tinues in office) or immediately before such designa-
tion, to act in such office until the same is filled as 
provided in this division. While so acting, such offi-
cers shall receive compensation at the higher of— 
(A) the rates provided by this division for 
the respective offices in which they act; or 
(B) the rates provided for the offices held at 
the time of designation.
838 
(2) RULE OF CONSTRUCTION.—Nothing in this 
division shall be construed to require the advice and 
consent of the Senate to the appointment by the Presi-
dent to a position in the Corporation of any officer 
whose agency is transferred to the Corporation pursu-
ant to this title and whose duties following such 
transfer are germane to those performed before such 
transfer. 
(d) TRANSFER OF PERSONNEL, ASSETS, OBLIGATIONS, 
AND FUNCTIONS.—Upon the transfer of an agency to the 
Corporation under section 1463— 
(1) the personnel, assets, and obligations held by 
or available in connection with the agency shall be 
transferred to the Corporation for appropriate alloca-
tion, subject to the approval of the Director of the Of-
fice of Management and Budget and in accordance 
with section 1531(a)(2) of title 31, United States 
Code; and 
(2) the Corporation shall have all functions— 
(A) relating to the agency that any other of-
ficial could by law exercise in relation to the 
agency immediately before such transfer; and 
(B) vested in the Corporation by this divi-
sion or other law.
839 
SEC. 1466. SAVINGS PROVISIONS. 
(a) COMPLETED ADMINISTRATIVE ACTIONS.— 
(1) IN GENERAL.—Completed administrative ac-
tions of an agency shall not be affected by the enact-
ment of this Act or the transfer of such agency to the 
Corporation under section 1463, but shall continue in 
effect according to their terms until amended, modi-
fied, superseded, terminated, set aside, or revoked in 
accordance with law by an officer of the United 
States or a court of competent jurisdiction, or by op-
eration of law. 
(2) COMPLETED
ADMINISTRATIVE
ACTION
DE-
FINED.—In this subsection, the term ‘‘completed ad-
ministrative action’’ includes orders, determinations, 
rules, regulations, personnel actions, permits, agree-
ments, grants, contracts, certificates, policies, licenses, 
registrations, and privileges. 
(b) PENDING PROCEEDINGS.— 
(1) IN GENERAL.—Pending proceedings in an 
agency, including notices of proposed rulemaking, 
and applications for licenses, permits, certificates, 
grants, and financial assistance, shall continue not-
withstanding the enactment of this Act or the transfer 
of the agency to the Corporation, unless discontinued 
or modified under the same terms and conditions and 
to the same extent that such discontinuance could
840 
have occurred if such enactment or transfer had not 
occurred. 
(2) ORDERS.—Orders issued in proceedings de-
scribed in paragraph (1), and appeals therefrom, and 
payments made pursuant to such orders, shall issue 
in the same manner and on the same terms as if this 
division had not been enacted or the agency had not 
been transferred, and any such orders shall continue 
in effect until amended, modified, superseded, termi-
nated, set aside, or revoked by an officer of the United 
States or a court of competent jurisdiction, or by op-
eration of law. 
(c) PENDING CIVIL ACTIONS.—Pending civil actions 
shall continue notwithstanding the enactment of this Act 
or the transfer of an agency to the Corporation, and in such 
civil actions, proceedings shall be had, appeals taken, and 
judgments rendered and enforced in the same manner and 
with the same effect as if such enactment or transfer had 
not occurred. 
(d) REFERENCES.—References relating to an agency 
that is transferred to the Corporation under section 1463 
in statutes, Executive orders, rules, regulations, directives, 
or delegations of authority that precede such transfer or the 
date of the enactment of this Act shall be deemed to refer, 
as appropriate, to the Corporation, to its officers, employ-
841 
ees, or agents, or to its corresponding organizational units 
or functions. Statutory reporting requirements that applied 
in relation to such an agency immediately before the effec-
tive date of this division shall continue to apply following 
such transfer if they refer to the agency by name. 
(e) EMPLOYMENT PROVISIONS.— 
(1) REGULATIONS.—The Corporation may, in 
regulations prescribed jointly with the Director of the 
Office of Personnel Management, adopt the rules, pro-
cedures, terms, and conditions, established by statute, 
rule, or regulation before the date of the enactment of 
this Act, relating to employment in any agency trans-
ferred to the Corporation under section 1463. 
(2) EFFECT OF TRANSFER ON CONDITIONS OF 
EMPLOYMENT.—Except as otherwise provided in this 
division, or under authority granted by this division, 
the transfer pursuant to this title of personnel shall 
not alter the terms and conditions of employment, in-
cluding compensation, of any employee so transferred. 
(f) STATUTORY REPORTING REQUIREMENTS.—Any 
statutory reporting requirement that applied to an agency 
transferred to the Corporation under this title immediately 
before the date of the enactment of this Act shall continue 
to apply following that transfer if the statutory requirement 
refers to the agency by name.
842 
SEC. 1467. OTHER TERMINATIONS. 
Except as otherwise provided in this division, when-
ever all the functions vested by law in any agency have 
been transferred pursuant to this title, each position and 
office the incumbent of which was authorized to receive com-
pensation at the rates prescribed for an office or position 
at level II, III, IV, or V of the Executive Schedule under 
subchapter II of chapter 53 of title 5, United States Code, 
shall terminate. 
SEC. 1468. INCIDENTAL TRANSFERS. 
The Director of the Office of Management and Budget, 
in consultation with the Corporation, is authorized and di-
rected to make such additional incidental dispositions of 
personnel, assets, and liabilities held, used, arising from, 
available, or to be made available, in connection with the 
functions transferred by this title, as the Director may de-
termine necessary to accomplish the purposes of this divi-
sion. 
SEC. 1469. REFERENCE. 
With respect to any function transferred under this 
title (including under a reorganization plan under section 
1462) and exercised on or after the date of the enactment 
of this Act, reference in any other Federal law to any de-
partment, commission, or agency or any officer or office 
the functions of which are so transferred shall be deemed
843 
to refer to the Corporation or official or component of the 
Corporation to which that function is so transferred. 
SEC. 1470. CONFORMING AMENDMENTS. 
(a) EXEMPT PROGRAMS.—Section 255(g) of the Bal-
anced Budget and Emergency Deficit Control Act of 1985 
(2 U.S.C. 905(g)) is amended by striking ‘‘Overseas Private 
Investment Corporation, Noncredit Account (71–4184–0–3– 
151).’’ and inserting ‘‘United States International Develop-
ment Finance Corporation.’’. 
(b) EXECUTIVE SCHEDULE.—Title 5, United States 
Code, is amended— 
(1) in section 5314, by striking ‘‘President, Over-
seas Private Investment Corporation.’’; 
(2) in section 5315, by striking ‘‘Executive Vice 
President, Overseas Private Investment Corporation.’’; 
and 
(3) in section 5316, by striking ‘‘Vice Presidents, 
Overseas Private Investment Corporation (3).’’. 
(c) OFFICE OF INTERNATIONAL TRADE OF THE SMALL 
BUSINESS ADMINISTRATION.—Section 22 of the Small 
Business Act (15 U.S.C. 649) is amended— 
(1) in subsection (b), in the matter preceding 
paragraph (1), by striking ‘‘the President of the Over-
seas Private Investment Corporation, Director’’ and 
inserting ‘‘the Board of Directors of the United States
844 
International Development Finance Corporation, the 
Director’’; and 
(2) by striking ‘‘Overseas Private Investment 
Corporation’’ each place it appears and inserting 
‘‘United States International Development Finance 
Corporation’’. 
(d) UNITED STATES
AND FOREIGN COMMERCIAL 
SERVICE.—Section 2301 of the Export Enhancement Act 
of 1988 (15 U.S.C. 4721) is amended by striking ‘‘Overseas 
Private Investment Corporation’’ each place it appears and 
inserting ‘‘United States International Development Fi-
nance Corporation’’. 
(e) TRADE PROMOTION COORDINATING COMMITTEE.— 
Section 2312(d)(1)(K) of the Export Enhancement Act of 
1988 (15 U.S.C. 4727(d)(1)(K)) is amended by striking 
‘‘Overseas Private Investment Corporation’’ and inserting 
‘‘United States International Development Finance Cor-
poration’’. 
(f) INTERAGENCY
TRADE
DATA
ADVISORY
COM-
MITTEE.—Section 5402(b) of the Omnibus Trade and Com-
petitiveness Act of 1988 (15 U.S.C. 4902(b)) is amended 
by striking ‘‘the President of the Overseas Private Invest-
ment Corporation’’ and inserting ‘‘the Chief Executive Offi-
cer of the United States International Development Finance 
Corporation’’.
845 
(g) MISUSE OF NAMES OF FEDERAL AGENCIES.—Sec-
tion 709 of title 18, United States Code, is amended by 
striking ‘‘ ‘Overseas Private Investment’, ‘Overseas Private 
Investment Corporation’, or ‘OPIC’,’’ and inserting 
‘‘ ‘United States International Development Finance Cor-
poration’ or ‘DFC’ ’’. 
(h) ENGAGEMENT
ON CURRENCY EXCHANGE RATE 
AND ECONOMIC POLICIES.—Section 701(c)(1)(A) of the 
Trade Facilitation and Trade Enforcement Act of 2015 (19 
U.S.C. 4421(c)(1)(A)) is amended by striking ‘‘Overseas 
Private Investment Corporation’’ and inserting ‘‘United 
States International Development Finance Corporation’’. 
(i) INTERNSHIPS
WITH
INSTITUTE
FOR
INTER-
NATIONAL PUBLIC POLICY.—Section 625 of the Higher 
Education Act of 1965 (20 U.S.C. 1131c(a)) is amended 
by striking ‘‘Overseas Private Investment Corporation’’ and 
inserting ‘‘United States International Development Fi-
nance Corporation’’. 
(j) FOREIGN ASSISTANCE ACT OF 1961.—The Foreign 
Assistance Act of 1961 (22 U.S.C. 2151 et seq.) is amend-
ed— 
(1) in section 116— 
(A) in subsection (a), by inserting ‘‘, and 
no support may be provided under title II of the
846 
Better Utilization of Investments Leading to De-
velopment Act of 2018,’’ after ‘‘this part’’; 
(B) in the first subsection (b)— 
(i) by inserting ‘‘or title II of the Bet-
ter Utilization of Investments Leading to 
Development Act of 2018’’ after ‘‘this part’’; 
(ii) by inserting ‘‘or the Chief Execu-
tive Officer of the United States Inter-
national Development Finance Corporation, 
as applicable,’’ after ‘‘this Act’’; 
(iii) by inserting ‘‘or support’’ after 
‘‘the assistance’’; and 
(iv) by inserting ‘‘or support’’ after 
‘‘such assistance’’ each place it appears; 
(C) in the second subsection (b), by insert-
ing ‘‘under this part, and no support may be 
provided under title II of the Better Utilization 
of Investments Leading to Development Act of 
2018,’’ after ‘‘provided’’; and 
(D) in subsection (c), by striking ‘‘under 
this part, the Administrator’’ and inserting 
‘‘under this part, or support provided under title 
II of the Better Utilization of Investments Lead-
ing to Development Act of 2018, the Adminis-
trator, or the Chief Executive Officer of the
847 
United States International Development Fi-
nance Corporation, as applicable,’’; 
(2) 
in 
section 
449B(b)(2) 
(22 
U.S.C. 
2296b(b)(2)), by striking ‘‘Overseas Private Invest-
ment Corporation’’ and inserting ‘‘United States 
International Development Finance Corporation’’; 
and 
(3) 
in 
section 
481(e)(4)(A) 
(22 
U.S.C. 
2291(e)(4)(A)), in the matter preceding clause (i), by 
striking ‘‘(including programs under title IV of chap-
ter 2, relating to the Overseas Private Investment 
Corporation)’’ and inserting ‘‘(and any support 
under title II of the Better Utilization of Investments 
Leading to Development Act of 2018, relating to the 
United States International Development Finance 
Corporation)’’. 
(k) ELECTRIFY AFRICA ACT OF 2015.—Sections 5 and 
7 of the Electrify Africa Act of 2015 (Public Law 114–121; 
22 U.S.C. 2293 note) are amended by striking ‘‘Overseas 
Private Investment Corporation’’ each place it appears and 
inserting ‘‘United States International Development Fi-
nance Corporation’’. 
(l) FOREIGN AID TRANSPARENCY
AND ACCOUNT-
ABILITY ACT OF 2016.—Section 2(3) of the Foreign Aid
848 
Transparency and Accountability Act of 2016 (Public Law 
114–191; 22 U.S.C. 2394c note) is amended— 
(1) in subparagraph (A), by striking ‘‘except 
for’’ and all that follows through ‘‘chapter 3’’ and in-
sert ‘‘except for chapter 3’’; 
(2) in subparagraph (C), by striking ‘‘and’’ at 
the end; 
(3) in subparagraph (D), by striking the period 
at the end and inserting ‘‘; and’’; and 
(4) by adding at the end the following: 
‘‘(E) the Better Utilization of Investments 
Leading to Development Act of 2018.’’. 
(m) SUPPORT
FOR EAST EUROPEAN DEMOCRACY 
(SEED) PROGRAM.—The Support for East European De-
mocracy (SEED) Act of 1989 (22 U.S.C. 5401 et seq.) is 
amended— 
(1) in section 2(c) (22 U.S.C. 5401(c)), by strik-
ing paragraph (12) and inserting the following: 
‘‘(12) UNITED STATES INTERNATIONAL DEVELOP-
MENT
FINANCE
CORPORATION.—Programs of the 
United States International Development Finance 
Corporation.’’; and 
(2) in section 201 (22 U.S.C. 5421), by striking 
subsection (e) and inserting the following:
849 
‘‘(e) GRANTS TO ENTERPRISE FUNDS.—Funds appro-
priated to the President pursuant to subsection (b) shall 
be granted to the Enterprise Funds to carry out the pur-
poses specified in subsection (a) and for the administrative 
expenses of each Enterprise Fund— 
‘‘(1) except as provided in paragraph (2), by the 
United States Agency for International Development; 
or 
‘‘(2) if the Enterprise Funds are transferred to 
the United States International Development Finance 
Corporation pursuant to section 1463(b) of the Better 
Utilization of Investments Leading to Development 
Act of 2018, by the Corporation.’’. 
(n) CUBAN LIBERTY AND DEMOCRATIC SOLIDARITY 
(LIBERTAD) ACT OF 1996.—Section 202(b)(2)(B)(iv) of 
the 
Cuban 
Liberty 
and 
Democratic 
Solidarity 
(LIBERTAD) Act of 1996 (22 U.S.C. 6062(b)(2)(B)(iv)) is 
amended by striking ‘‘Overseas Private Investment Cor-
poration’’ and inserting ‘‘United States International De-
velopment Finance Corporation’’. 
(o) INTERNATIONAL RELIGIOUS FREEDOM ACT
OF 
1998.—Section 405(a)(10) of the International Religious 
Freedom Act of 1998 (22 U.S.C. 6445(a)(10)) is amended 
by striking ‘‘Overseas Private Investment Corporation’’ and
850 
inserting ‘‘United States International Development Fi-
nance Corporation’’. 
(p) TRAFFICKING
VICTIMS
PROTECTION
ACT
OF 
2000.—Section 103(8)(A) of the Trafficking Victims Protec-
tion Act of 2000 (22 U.S.C. 7102(8)(A)) is amended in 
clause (viii) to read as follows: 
‘‘(viii) any support under title II of 
the Better Utilization of Investments Lead-
ing to Development Act of 2018 relating to 
the United States International Develop-
ment Finance Corporation; and’’. 
(q) TECHNOLOGY DEPLOYMENT IN DEVELOPING COUN-
TRIES.—Section 732(b) of the Global Environmental Pro-
tection Assistance Act of 1989 (22 U.S.C. 7902(b)) is 
amended by striking ‘‘Overseas Private Investment Cor-
poration’’ and inserting ‘‘United States International De-
velopment Finance Corporation’’. 
(r) 
EXPANDED
NONMILITARY
ASSISTANCE
FOR 
UKRAINE.—Section 7(c)(3) of the Ukraine Freedom Sup-
port Act of 2014 (22 U.S.C. 8926(c)(3)) is amended— 
(1) in the paragraph heading, by striking 
‘‘OVERSEAS PRIVATE INVESTMENT CORPORATION’’ and 
inserting ‘‘UNITED STATES INTERNATIONAL DEVELOP-
MENT FINANCE CORPORATION’’;
851 
(2) in the matter preceding subparagraph (A), 
by striking ‘‘Overseas Private Investment Corpora-
tion’’ and inserting ‘‘United States International De-
velopment Finance Corporation’’; and 
(3) in subparagraph (B), by striking ‘‘by eligible 
investors (as defined in section 238 of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2198))’’. 
(s) GLOBAL FOOD SECURITY ACT OF 2016.—Section 
4(7) of the Global Food Security Act of 2016 (22 U.S.C. 
9303(7)) is amended by striking ‘‘Overseas Private Invest-
ment Corporation’’ and inserting ‘‘United States Inter-
national Development Finance Corporation’’. 
(t) SENSE OF CONGRESS ON EUROPEAN AND EUR-
ASIAN ENERGY SECURITY.—Section 257(c)(2)(B) of the 
Countering Russian Influence in Europe and Eurasia Act 
of 2017 (22 U.S.C. 9546(c)(2)(B)) is amended by striking 
‘‘Overseas Private Investment Corporation’’ and inserting 
‘‘United States International Development Finance Cor-
poration’’. 
(u) WHOLLY OWNED GOVERNMENT CORPORATION.— 
Section 9101(3) of title 31, United States Code, is amended 
by striking ‘‘Overseas Private Investment Corporation’’ and 
inserting ‘‘United States International Development Fi-
nance Corporation’’.
852 
(v) ENERGY INDEPENDENCE AND SECURITY ACT OF 
2007.—Title IX of the Energy Independence and Security 
Act of 2007 (42 U.S.C. 17321 et seq.) is amended— 
(1) in section 914 (42 U.S.C. 17334)— 
(A) in the section heading, by striking 
‘‘OVERSEAS
PRIVATE
INVESTMENT
COR-
PORATION’’ and inserting ‘‘UNITED STATES 
INTERNATIONAL
DEVELOPMENT
FINANCE 
CORPORATION’’; 
(B) in subsection (a), in the matter pre-
ceding paragraph (1), by striking ‘‘Overseas Pri-
vate Investment Corporation’’ and inserting 
‘‘United States International Development Fi-
nance Corporation’’; and 
(C) in subsection (b), in the matter pre-
ceding paragraph (1), by striking ‘‘Overseas Pri-
vate Investment Corporation shall include in its 
annual report required under section 240A of the 
Foreign Assistance Act of 1961 (22 U.S.C. 
2200a)’’ and inserting ‘‘United States Inter-
national Development Finance Corporation shall 
include in its annual report required under sec-
tion 1443 of the Better Utilization of Invest-
ments Leading to Development Act of 2018’’; and
853 
(2) 
in 
section 
916(a)(2)(I) 
(42 
U.S.C. 
17336(a)(2)(I)), by striking ‘‘Overseas Private Invest-
ment Corporation:’’ and inserting ‘‘United States 
International Development Finance Corporation;’’. 
(w) EFFECTIVE DATE.—The amendments made by 
this section shall take effect at the end of the transition pe-
riod. 
DIVISION G—SYRIA STUDY 
GROUP 
SEC. 1501. SYRIA STUDY GROUP. 
(a) ESTABLISHMENT.—There is established a working 
group to be known as the ‘‘Syria Study Group’’ (in this 
section referred to as the ‘‘Group’’). 
(b) PURPOSE.—The purpose of the Group is to exam-
ine and make recommendations on the military and diplo-
matic strategy of the United States with respect to the con-
flict in Syria. 
(c) COMPOSITION.— 
(1) MEMBERSHIP.—The Group shall be composed 
of 12 members, none of whom may be members of 
Congress, who shall be appointed as follows: 
(A) One member appointed by the chair of 
the Committee on Armed Services of the Senate.
854 
(B) One member appointed by the ranking 
minority member of the Committee on Armed 
Services of the Senate. 
(C) One member appointed by the chair of 
the Committee on Foreign Relations of the Sen-
ate. 
(D) One member appointed by the ranking 
minority member of the Committee on Foreign 
Relations of the Senate. 
(E) One member appointed by the chair of 
the Committee on Armed Services of the House 
of Representatives. 
(F) One member appointed by the ranking 
minority member of the Committee on Armed 
Services of the House of Representatives. 
(G) One member appointed by the chair of 
the Committee on Foreign Affairs of the House 
of Representatives. 
(H) One member appointed by the ranking 
minority member of the Committee on Foreign 
Affairs of the House of Representatives. 
(I) One member appointed by the majority 
leader of the Senate. 
(J) One member appointed by the minority 
leader of the Senate.
855 
(K) One member appointed by the Speaker 
of the House of Representatives. 
(L) One member appointed by the minority 
leader of the House of Representatives. 
(2) CO-CHAIRS.— 
(A) Of the members of the Group, one co- 
chair shall be jointly designated by— 
(i) the chairs of the Committee on 
Armed Services and the Committee on For-
eign Relations of the Senate; 
(ii) the chairs of the Committee on 
Armed Services and the Committee on For-
eign Affairs of the House of Representatives; 
(iii) the majority leader of the Senate; 
and 
(iv) the Speaker of the House of Rep-
resentatives. 
(B) Of the members of the Group, one co- 
chair shall be jointly designated by— 
(i) the ranking minority members of 
the Committee on Armed Services and the 
Committee on Foreign Relations of the Sen-
ate; 
(ii) the ranking minority members of 
the Committee on Armed Services and the
856 
Committee on Foreign Affairs of the House 
of Representatives; 
(iii) the minority leader of the Senate; 
and 
(iv) the minority leader of the House of 
Representatives. 
(3) PERIOD OF APPOINTMENT.—A member shall 
be appointed for the life of the Group. 
(4) VACANCIES.—Any vacancy in the Group 
shall be filled in the same manner as the original ap-
pointment. 
(d) DUTIES.— 
(1) REVIEW.—The Group shall conduct a review 
on the current United States military and diplomatic 
strategy with respect to the conflict in Syria that in-
cludes a review of current United States objectives in 
Syria and the desired end state in Syria. 
(2) ASSESSMENT AND RECOMMENDATIONS.—The 
Group shall— 
(A) conduct a comprehensive assessment of 
the current situation in Syria, the impact of 
such situation on neighboring countries, the re-
sulting regional and geopolitical threats to the 
United States, and current military, diplomatic,
857 
and political efforts to achieve a stable Syria; 
and 
(B) develop recommendations on the mili-
tary and diplomatic strategy of the United 
States with respect to the conflict in Syria. 
(e) COOPERATION
OF
UNITED
STATES
GOVERN-
MENT.— 
(1) IN GENERAL.—The Group shall receive the 
full and timely cooperation of the Secretary of De-
fense, the Secretary of State, and the Director of Na-
tional Intelligence in providing the Group with anal-
yses, briefings, and other information necessary for 
the discharge of the duties of the Group under sub-
section (d). 
(2) LIAISON.—The Secretary of Defense, the Sec-
retary of State, and the Director of National Intel-
ligence shall each designate at least one officer or em-
ployee of the Department of Defense, the Department 
of State, and the Office of the Director of National In-
telligence, respectively, to serve as a liaison to the 
Group. 
(3) FACILITATION.—The United States Institute 
of Peace shall take appropriate actions to facilitate 
the Group in the discharge of the duties of the Group 
under this section.
858 
(f) REPORTS.— 
(1) FINAL REPORT.— 
(A) IN GENERAL.—Not later than 180 days 
after the date of enactment of this section, the 
Group shall submit to the President, the Sec-
retary of Defense, the Committee on Armed Serv-
ices and the Committee on Foreign Relations of 
the Senate, the Committee on Armed Services 
and the Committee on Foreign Affairs of the 
House of Representatives, the majority and mi-
nority leaders of the Senate, the Speaker of the 
House of Representatives, and the minority lead-
er of the House of Representatives a report that 
sets forth the findings, conclusions, and rec-
ommendations of the Group under this section. 
(B) ELEMENTS.—The report required by 
subparagraph (A) shall include each of the fol-
lowing: 
(i) An assessment of the current secu-
rity, political, humanitarian, and economic 
situations in Syria. 
(ii) An assessment of the current par-
ticipation and objectives of the various ex-
ternal actors in Syria.
859 
(iii) An assessment of the consequences 
of continued conflict in Syria. 
(iv) Recommendations for a resolution 
to the conflict in Syria, including— 
(I) options for a gradual political 
transition to a post-Assad Syria; and 
(II) actions necessary for rec-
onciliation. 
(v) A roadmap for a United States and 
coalition strategy to reestablish security and 
governance 
in 
Syria, 
including 
rec-
ommendations for the synchronization of 
stabilization, development, counterterrorism, 
and reconstruction efforts. 
(vi) Any other matter with respect to 
the conflict in Syria that the Group con-
siders to be appropriate. 
(2) INTERIM REPORT.—Not later than 90 days 
after the date of enactment of this section, the Group 
shall submit to the Committee on Armed Services and 
the Committee on Foreign Relations of the Senate, the 
Committee on Armed Services and the Committee on 
Foreign Affairs of the House of Representatives, the 
majority and minority leaders of the Senate, the 
Speaker of the House of Representatives, and the mi-
860 
nority leader of the House of Representatives a report 
that describes the status of the review and assessment 
under subsection (d) and any interim recommenda-
tions developed by the Group as of the date of the 
briefing. 
(3) FORM OF REPORT.—The report submitted to 
Congress under paragraph (1) shall be submitted in 
unclassified form, but may include a classified annex. 
(g) TERMINATION.—The Group shall terminate on the 
date that is 180 days after the date on which the Group 
submits the report required by subsection (f)(1). 
DIVISION H—PREVENTING 
EMERGING THREATS 
SEC. 1601. SHORT TITLE. 
This division may be cited as the ‘‘Preventing Emerg-
ing Threats Act of 2018’’. 
SEC. 1602. PROTECTION OF CERTAIN FACILITIES AND AS-
SETS FROM UNMANNED AIRCRAFT. 
(a) IN GENERAL.—Subtitle A of title II of the Home-
land Security Act of 2002 (6 U.S.C. 121 et seq.) is amended 
by adding at the end the following: 
‘‘SEC. 210G. PROTECTION OF CERTAIN FACILITIES AND AS-
SETS FROM UNMANNED AIRCRAFT. 
‘‘(a) AUTHORITY.—Notwithstanding section 46502 of 
title 49, United States Code, or sections 32, 1030, 1367 and
861 
chapters 119 and 206 of title 18, United States Code, the 
Secretary and the Attorney General may, for their respec-
tive Departments, take, and may authorize personnel with 
assigned duties that include the security or protection of 
people, facilities, or assets, to take such actions as are de-
scribed in subsection (b)(1) that are necessary to mitigate 
a credible threat (as defined by the Secretary or the Attor-
ney General, in consultation with the Secretary of Trans-
portation) that an unmanned aircraft system or unmanned 
aircraft poses to the safety or security of a covered facility 
or asset. 
‘‘(b) ACTIONS DESCRIBED.— 
‘‘(1) IN GENERAL.—The actions authorized in 
subsection (a) are the following: 
‘‘(A) During the operation of the unmanned 
aircraft system, detect, identify, monitor, and 
track the unmanned aircraft system or un-
manned aircraft, without prior consent, includ-
ing by means of intercept or other access of a 
wire communication, an oral communication, or 
an electronic communication used to control the 
unmanned aircraft system or unmanned air-
craft. 
‘‘(B) Warn the operator of the unmanned 
aircraft system or unmanned aircraft, including
862 
by passive or active, and direct or indirect phys-
ical, 
electronic, 
radio, 
and 
electromagnetic 
means. 
‘‘(C) Disrupt control of the unmanned air-
craft system or unmanned aircraft, without 
prior consent, including by disabling the un-
manned aircraft system or unmanned aircraft 
by intercepting, interfering, or causing inter-
ference with wire, oral, electronic, or radio com-
munications used to control the unmanned air-
craft system or unmanned aircraft. 
‘‘(D) Seize or exercise control of the un-
manned aircraft system or unmanned aircraft. 
‘‘(E) Seize or otherwise confiscate the un-
manned aircraft system or unmanned aircraft. 
‘‘(F) Use reasonable force, if necessary, to 
disable, damage, or destroy the unmanned air-
craft system or unmanned aircraft. 
‘‘(2) REQUIRED COORDINATION.—The Secretary 
and the Attorney General shall develop for their re-
spective Departments the actions described in para-
graph (1) in coordination with the Secretary of 
Transportation. 
‘‘(3) RESEARCH, TESTING, TRAINING, AND EVAL-
UATION.—The Secretary and the Attorney General
863 
shall conduct research, testing, training on, and eval-
uation of any equipment, including any electronic 
equipment, to determine its capability and utility 
prior to the use of any such technology for any action 
described in subsection (b)(1). 
‘‘(4) COORDINATION.—The Secretary and the At-
torney General shall coordinate with the Adminis-
trator of the Federal Aviation Administration when 
any action authorized by this section might affect 
aviation safety, civilian aviation and aerospace oper-
ations, aircraft airworthiness, or the use of the air-
space. 
‘‘(c) FORFEITURE.—Any unmanned aircraft system or 
unmanned aircraft described in subsection (a) that is seized 
by the Secretary or the Attorney General is subject to for-
feiture to the United States. 
‘‘(d) REGULATIONS AND GUIDANCE.— 
‘‘(1) IN GENERAL.—The Secretary, the Attorney 
General, and the Secretary of Transportation may 
prescribe regulations and shall issue guidance in the 
respective areas of each Secretary or the Attorney 
General to carry out this section. 
‘‘(2) COORDINATION.— 
‘‘(A) COORDINATION WITH DEPARTMENT OF 
TRANSPORTATION.—The Secretary and the Attor-
864 
ney General shall coordinate the development of 
their respective guidance under paragraph (1) 
with the Secretary of Transportation. 
‘‘(B) EFFECT
ON
AVIATION
SAFETY.—The 
Secretary and the Attorney General shall respec-
tively coordinate with the Secretary of Transpor-
tation and the Administrator of the Federal 
Aviation Administration before issuing any 
guidance, or otherwise implementing this section, 
if such guidance or implementation might affect 
aviation safety, civilian aviation and aerospace 
operations, aircraft airworthiness, or the use of 
airspace. 
‘‘(e) PRIVACY PROTECTION.—The regulations or guid-
ance issued to carry out actions authorized under subsection 
(b) by each Secretary or the Attorney General, as the case 
may be, shall ensure that— 
‘‘(1) the interception or acquisition of, or access 
to, or maintenance or use of, communications to or 
from an unmanned aircraft system under this section 
is conducted in a manner consistent with the First 
and Fourth Amendments to the Constitution of the 
United States and applicable provisions of Federal 
law;
865 
‘‘(2) communications to or from an unmanned 
aircraft system are intercepted or acquired only to the 
extent necessary to support an action described in 
subsection (b)(1); 
‘‘(3) records of such communications are main-
tained only for as long as necessary, and in no event 
for more than 180 days, unless the Secretary of 
Homeland Security or the Attorney General deter-
mine that maintenance of such records is necessary to 
investigate or prosecute a violation of law, directly 
support an ongoing security operation, is required 
under Federal law, or for the purpose of any litiga-
tion; 
‘‘(4) such communications are not disclosed out-
side the Department of Homeland Security or the De-
partment of Justice unless the disclosure— 
‘‘(A) is necessary to investigate or prosecute 
a violation of law; 
‘‘(B) would support the Department of De-
fense, a Federal law enforcement agency, or the 
enforcement activities of a regulatory agency of 
the Federal Government in connection with a 
criminal or civil investigation of, or any regu-
latory, statutory, or other enforcement action re-
lating to an action described in subsection (b)(1);
866 
‘‘(C) is between the Department of Home-
land Security and the Department of Justice in 
the course of a security or protection operation 
of either agency or a joint operation of such 
agencies; or 
‘‘(D) is otherwise required by law; and 
‘‘(5) to the extent necessary, the Department of 
Homeland Security and the Department of Justice 
are authorized to share threat information, which 
shall not include communications referred to in sub-
section (b), with State, local, territorial, or tribal law 
enforcement agencies in the course of a security or 
protection operation. 
‘‘(f) BUDGET.—The Secretary and the Attorney Gen-
eral shall submit to Congress, as a part of the homeland 
security or justice budget materials for each fiscal year after 
fiscal year 2019, a consolidated funding display that identi-
fies the funding source for the actions described in sub-
section (b)(1) within the Department of Homeland Security 
or the Department of Justice. The funding display shall be 
in unclassified form, but may contain a classified annex. 
‘‘(g) SEMIANNUAL BRIEFINGS AND NOTIFICATIONS.— 
‘‘(1) IN GENERAL.—On a semiannual basis dur-
ing the period beginning 6 months after the date of 
enactment of this section and ending on the date spec-
867 
ified in subsection (i), the Secretary and the Attorney 
General shall, respectively, provide a briefing to the 
appropriate congressional committees on the activities 
carried out pursuant to this section. 
‘‘(2) REQUIREMENT.—Each briefing required 
under paragraph (1) shall be conducted jointly with 
the Secretary of Transportation. 
‘‘(3) CONTENT.—Each briefing required under 
paragraph (1) shall include— 
‘‘(A) policies, programs, and procedures to 
mitigate or eliminate impacts of such activities 
to the National Airspace System; 
‘‘(B) a description of instances in which ac-
tions described in subsection (b)(1) have been 
taken, including all such instances that may 
have resulted in harm, damage, or loss to a per-
son or to private property; 
‘‘(C) a description of the guidance, policies, 
or procedures established to address privacy, 
civil rights, and civil liberties issues implicated 
by the actions allowed under this section, as well 
as any changes or subsequent efforts that would 
significantly affect privacy, civil rights or civil 
liberties;
868 
‘‘(D) a description of options considered 
and steps taken to mitigate any identified im-
pacts to the national airspace system related to 
the use of any system or technology, including 
the minimization of the use of any technology 
that disrupts the transmission of radio or elec-
tronic signals, for carrying out the actions de-
scribed in subsection (b)(1); 
‘‘(E) a description of instances in which 
communications intercepted or acquired during 
the course of operations of an unmanned aircraft 
system were held for more than 180 days or 
shared outside of the Department of Justice or 
the Department of Homeland Security; 
‘‘(F) how the Secretary, the Attorney Gen-
eral, and the Secretary of Transportation have 
informed the public as to the possible use of au-
thorities under this section; 
‘‘(G) how the Secretary, the Attorney Gen-
eral, and the Secretary of Transportation have 
engaged with Federal, State, and local law en-
forcement agencies to implement and use such 
authorities. 
‘‘(4) UNCLASSIFIED
FORM.—Each briefing re-
quired under paragraph (1) shall be in unclassified
869 
form, but may be accompanied by an additional clas-
sified briefing. 
‘‘(5) NOTIFICATION.—Within 30 days of deploy-
ing any new technology to carry out the actions de-
scribed in subsection (b)(1), the Secretary and the At-
torney General shall, respectively, submit a notifica-
tion to the appropriate congressional committees. 
Such notification shall include a description of op-
tions considered to mitigate any identified impacts to 
the national airspace system related to the use of any 
system or technology, including the minimization of 
the use of any technology that disrupts the trans-
mission of radio or electronic signals, for carrying out 
the actions described in subsection (b)(1). 
‘‘(h) RULE OF CONSTRUCTION.—Nothing in this sec-
tion may be construed to— 
‘‘(1) vest in the Secretary or the Attorney Gen-
eral any authority of the Secretary of Transportation 
or the Administrator of the Federal Aviation Admin-
istration; 
‘‘(2) vest in the Secretary of Transportation or 
the Administrator of the Federal Aviation Adminis-
tration any authority of the Secretary or the Attorney 
General;
870 
‘‘(3) vest in the Secretary of Homeland Security 
any authority of the Attorney General; 
‘‘(4) vest in the Attorney General any authority 
of the Secretary of Homeland Security; or 
‘‘(5) provide a new basis of liability for any 
State, local, territorial, or tribal law enforcement offi-
cers who participate in the protection of a mass gath-
ering identified by the Secretary or Attorney General 
under subsection (k)(3)(C)(iii)(II), act within the 
scope of their authority, and do not exercise the au-
thority granted to the Secretary and Attorney General 
by this section. 
‘‘(i) TERMINATION.—The authority to carry out this 
section with respect to a covered facility or asset specified 
in subsection (k)(3) shall terminate on the date that is 4 
years after the date of enactment of this section. 
‘‘(j) SCOPE OF AUTHORITY.—Nothing in this section 
shall be construed to provide the Secretary or the Attorney 
General with additional authorities beyond those described 
in subsections (a) and (k)(3)(C)(iii). 
‘‘(k) DEFINITIONS.—In this section: 
‘‘(1) The term ‘appropriate congressional com-
mittees’ means— 
‘‘(A) the Committee on Homeland Security 
and Governmental Affairs, the Committee on
871 
Commerce, Science, and Transportation, and the 
Committee on the Judiciary of the Senate; and 
‘‘(B) the Committee on Homeland Security, 
the Committee on Transportation and Infra-
structure, the Committee on Energy and Com-
merce, and the Committee on the Judiciary of 
the House of Representatives. 
‘‘(2) The term ‘budget’, with respect to a fiscal 
year, means the budget for that fiscal year that is 
submitted to Congress by the President under section 
1105(a) of title 31. 
‘‘(3) The term ‘covered facility or asset’ means 
any facility or asset that— 
‘‘(A) is identified as high-risk and a poten-
tial target for unlawful unmanned aircraft ac-
tivity by the Secretary or the Attorney General, 
in coordination with the Secretary of Transpor-
tation with respect to potentially impacted air-
space, through a risk-based assessment for pur-
poses of this section (except that in the case of 
the 
missions 
described 
in 
subparagraph 
(C)(i)(II) and (C)(iii)(I), such missions shall be 
presumed to be for the protection of a facility or 
asset that is assessed to be high-risk and a poten-
872 
tial target for unlawful unmanned aircraft ac-
tivity); 
‘‘(B) is located in the United States (includ-
ing the territories and possessions, territorial 
seas or navigable waters of the United States); 
and 
‘‘(C) directly relates to one or more— 
‘‘(i) missions authorized to be per-
formed by the Department of Homeland Se-
curity, consistent with governing statutes, 
regulations, and orders issued by the Sec-
retary, pertaining to— 
‘‘(I) security or protection func-
tions of the U.S. Customs and Border 
Protection, including securing or pro-
tecting facilities, aircraft, and vessels, 
whether moored or underway; 
‘‘(II) United States Secret Service 
protection operations pursuant to sec-
tions 3056(a) and 3056A(a) of title 18, 
United States Code, and the Presi-
dential Protection Assistance Act of 
1976 (18 U.S.C. 3056 note); or
873 
‘‘(III) protection of facilities pur-
suant to section 1315(a) of title 40, 
United States Code; 
‘‘(ii) missions authorized to be per-
formed by the Department of Justice, con-
sistent with governing statutes, regulations, 
and orders issued by the Attorney General, 
pertaining to— 
‘‘(I) personal protection oper-
ations by— 
‘‘(aa) the Federal Bureau of 
Investigation as specified in sec-
tion 533 of title 28, United States 
Code; and 
‘‘(bb) the United States Mar-
shals Service of Federal jurists, 
court officers, witnesses, and other 
threatened persons in the interests 
of justice, as specified in section 
566(e)(1)(A) of title 28, United 
States Code; 
‘‘(II) protection of penal, deten-
tion, and correctional facilities and op-
erations conducted by the Federal Bu-
reau of Prisons; or
874 
‘‘(III) protection of the buildings 
and grounds leased, owned, or operated 
by or for the Department of Justice, 
and the provision of security for Fed-
eral courts, as specified in section 
566(a) of title 28, United States Code; 
‘‘(iii) missions authorized to be per-
formed by the Department of Homeland Se-
curity or the Department of Justice, acting 
together or separately, consistent with gov-
erning statutes, regulations, and orders 
issued by the Secretary or the Attorney 
General, respectively, pertaining to— 
‘‘(I) protection of a National Spe-
cial Security Event and Special Event 
Assessment Rating event; 
‘‘(II) the provision of support to 
State, local, territorial, or tribal law 
enforcement, upon request of the chief 
executive officer of the State or terri-
tory, to ensure protection of people and 
property at mass gatherings, that is 
limited to a specified timeframe and 
location, within available resources, 
and without delegating any authority
875 
under this section to State, local, terri-
torial, or tribal law enforcement; or 
‘‘(III) protection of an active Fed-
eral law enforcement investigation, 
emergency response, or security func-
tion, that is limited to a specified 
timeframe and location; and 
‘‘(iv) missions authorized to be per-
formed by the United States Coast Guard, 
including those described in clause (iii) as 
directed by the Secretary, and as further set 
forth in section 104 of title 14, United 
States Code, and consistent with governing 
statutes, regulations, and orders issued by 
the Secretary of the Department in which 
the Coast Guard is operating. 
‘‘(4) The terms ‘electronic communication’, 
‘intercept’, ‘oral communication’, and ‘wire commu-
nication’ have the meaning given those terms in sec-
tion 2510 of title 18, United States Code. 
‘‘(5) The term ‘homeland security or justice 
budget materials’, with respect to a fiscal year, means 
the materials submitted to Congress by the Secretary 
and the Attorney General in support of the budget for 
that fiscal year.
876 
‘‘(6) For purposes of subsection (a), the term 
‘personnel’ means officers and employees of the De-
partment of Homeland Security or the Department of 
Justice. 
‘‘(7) The terms ‘unmanned aircraft’ and ‘un-
manned aircraft system’ have the meanings given 
those terms in section 44801, of title 49, United 
States Code. 
‘‘(8) For purposes of this section, the term ‘risk- 
based assessment’ includes an evaluation of threat in-
formation specific to a covered facility or asset and, 
with respect to potential impacts on the safety and ef-
ficiency of the national airspace system and the needs 
of law enforcement and national security at each cov-
ered facility or asset identified by the Secretary or the 
Attorney General, respectively, of each of the following 
factors: 
‘‘(A) Potential impacts to safety, efficiency, 
and use of the national airspace system, includ-
ing potential effects on manned aircraft and un-
manned aircraft systems, aviation safety, airport 
operations, infrastructure, and air navigation 
services related to the use of any system or tech-
nology for carrying out the actions described in 
subsection (b)(1).
877 
‘‘(B) Options for mitigating any identified 
impacts to the national airspace system related 
to the use of any system or technology, including 
minimizing when possible the use of any tech-
nology which disrupts the transmission of radio 
or electronic signals, for carrying out the actions 
described in subsection (b)(1). 
‘‘(C) Potential consequences of the impacts 
of any actions taken under subsection (b)(1) to 
the national airspace system and infrastructure 
if not mitigated. 
‘‘(D) The ability to provide reasonable ad-
vance notice to aircraft operators consistent with 
the safety of the national airspace system and 
the needs of law enforcement and national secu-
rity. 
‘‘(E) The setting and character of any cov-
ered facility or asset, including whether it is lo-
cated in a populated area or near other struc-
tures, whether the facility is open to the public, 
whether the facility is also used for nongovern-
mental functions, and any potential for inter-
ference with wireless communications or for in-
jury or damage to persons or property.
878 
‘‘(F) The setting, character, timeframe, and 
national airspace system impacts of National 
Special Security Event and Special Event As-
sessment Rating events. 
‘‘(G) Potential consequences to national se-
curity, public safety, or law enforcement if 
threats posed by unmanned aircraft systems are 
not mitigated or defeated. 
‘‘(l) DEPARTMENT OF HOMELAND SECURITY ASSESS-
MENT.— 
‘‘(1) REPORT.—Not later than 1 year after the 
date of the enactment of this section, the Secretary 
shall conduct, in coordination with the Attorney Gen-
eral and the Secretary of Transportation, an assess-
ment to the appropriate congressional committees, in-
cluding— 
‘‘(A) an evaluation of the threat from un-
manned aircraft systems to United States crit-
ical infrastructure (as defined in this Act) and 
to domestic large hub airports (as defined in sec-
tion 40102 of title 49, United States Code); 
‘‘(B) an evaluation of current Federal and 
State, local, territorial, or tribal law enforcement 
authorities to counter the threat identified in 
subparagraph (A), and recommendations, if any,
879 
for potential changes to existing authorities to 
allow State, local, territorial, and tribal law en-
forcement to assist Federal law enforcement to 
counter the threat where appropriate; 
‘‘(C) an evaluation of the knowledge of, effi-
ciency of, and effectiveness of current procedures 
and resources available to owners of critical in-
frastructure and domestic large hub airports 
when they believe a threat from unmanned air-
craft systems is present and what additional ac-
tions, if any, the Department of Homeland Secu-
rity or the Department of Transportation could 
implement under existing authorities to assist 
these entities to counter the threat identified in 
subparagraph (A); 
‘‘(D) an assessment of what, if any, addi-
tional authorities are needed by each Depart-
ment and law enforcement to counter the threat 
identified in subparagraph (A); and 
‘‘(E) an assessment of what, if any, addi-
tional research and development the Department 
needs to counter the threat identified in subpara-
graph (A).
880 
‘‘(2) UNCLASSIFIED FORM.—The report required 
under paragraph (1) shall be submitted in unclassi-
fied form, but may contain a classified annex.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by inserting after 
the item relating to section 210F the following: 
‘‘Sec. 210G. Protection of certain facilities and assets from unmanned aircraft.’’. 
SEC. 1603. PROTECTING AGAINST UNMANNED AIRCRAFT. 
(a) IN GENERAL.—Chapter 5 of title 14, United States 
Code, is amended by inserting after section 103 the fol-
lowing: 
‘‘§ 104. Protecting against unmanned aircraft 
‘‘For the purposes of section 210G(k)(3)(C)(iv) of the 
Homeland Security Act of 2002, the missions authorized 
to be performed by the United States Coast Guard shall be 
those related to— 
‘‘(1) functions of the U.S. Coast Guard relating 
to security or protection of facilities and assets as-
sessed to be high-risk and a potential target for un-
lawful unmanned aircraft activity, including the se-
curity and protection of— 
‘‘(A) a facility, including a facility that is 
under the administrative control of the Com-
mandant; and 
‘‘(B) a vessel (whether moored or underway) 
or an aircraft, including a vessel or aircraft—