IB
Union Calendar No. 403
103D CONGRESS
2D SESSION
H. R. 4950
[Report No. 103–726]
To extend the authorities of the Overseas Private Investment Corporation,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 12, 1994
Mr. GEJDENSON (for himself, Mr. ROTH, Ms. CANTWELL, Mr. JOHNSTON of
Florida, Mr. BEREUTER, Mrs. MEYERS of Kansas, Mr. FINGERHUT, Mr.
ENGEL, Mr. WYNN, Mr. OBERSTAR, and Mr. SCHUMER) introduced the
following bill; which was referred to the Committee on Foreign Affairs
SEPTEMBER 19, 1994
Reported with amendments, committed to the Committee of the Whole House
on the State of the Union, and ordered to be printed
[Omit the part struck through and insert the part printed in italic]
A BILL
To extend the authorities of the Overseas Private Investment
Corporation, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Jobs Through Trade
Expansion Act of 1994’’.
TITLE I—OVERSEAS PRIVATE
INVESTMENT CORPORATION
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Overseas Private In-
vestment Corporation Amendments Act of 1994’’.
SEC. 102. REAUTHORIZATION OF CORPORATION.
Title IV of chapter 2 of part I of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2191 et seq.) is amended
to read as follows:
‘‘TITLE IV—OVERSEAS PRIVATE
INVESTMENT CORPORATION
‘‘SEC. 231. PURPOSE AND POLICY.
‘‘(a) PURPOSE.—The Overseas Private Investment
Corporation shall be an independent agency of the United
States under the foreign policy guidance of the Secretary
of State. The purpose of the Corporation is to promote
sustainable environmentally sound economic development
in developing countries and areas, and countries in transi-
tion from nonmarket to market economies, by mobilizing
and facilitating the participation of the United States pri-
vate sector.
‘‘(b) ELIGIBILITY CRITERIA
FOR PARTICIPATING
COUNTRIES AND AREAS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (3), the Corporation may operate its programs
in a country (or an area within a country) only if—
‘‘(A) the United States maintains diplo-
matic relations with the country;
‘‘(B) either—
‘‘(i) the country or area is a develop-
ing country or area; or
‘‘(ii) the country is in transition from
a nonmarket to market economy; and
‘‘(C) programs in that country are not pro-
hibited under section 234(e)(2) (relating to
human rights violators).
‘‘(2) PREFERENCE FOR CERTAIN COUNTRIES.—
In conducting its activities, the Corporation shall—
‘‘(A) give preference to projects in coun-
tries with per capita incomes of $1,230 or less
in 1992 United States dollars; and
‘‘(B) restrict its activities in countries with
per capita incomes of $5,335 or more in 1992
United States dollars (other than countries des-
ignated as beneficiary countries under section
212 of the Caribbean Basin Economic Recovery
Act, the Republic of Ireland, and Northern Ire-
land).
‘‘(3) PROGRAMS IN INELIGIBLE COUNTRIES.—
(A) Except as provided in subparagraph (B), if a
country in which the Corporation is operating its
programs ceases to meet the criteria set forth in
paragraph (1), or if (pursuant to this or any other
Act) the government of that country becomes ineli-
gible for assistance, the Corporation shall cease to
operate its programs in such country, except that
the Corporation shall not be required to terminate
any contract or commitment entered into prior to
the date on which such country is determined to be
ineligible for such assistance.
‘‘(B) The Corporation may continue to operate
its programs in a country which ceases to meet the
criteria set forth in paragraph (1) if the President
of the United States determines that the operation
of such programs would be in the national interest
of the United States.
‘‘(c) GUIDELINES
FOR ACTIVITIES
OF OPIC.—In
carrying out its purpose, the Corporation shall under-
take—
‘‘(1) to conduct insurance, reinsurance, and fi-
nancing operations on a self-sustaining basis, taking
into account in its financing operations the economic
and financial soundness of projects;
‘‘(2) to broaden private participation by selling
its direct investments to private investors whenever
it can appropriately do so on satisfactory terms;
‘‘(3) to conduct its insurance operations with
due regard to principles of risk management, includ-
ing efforts to share its insurance risks and reinsur-
ance risks;
‘‘(4) to consider in the conduct of its operations
the extent to which the governments of eligible coun-
tries are receptive to private enterprise, domestic
and foreign, and their willingness and ability to
maintain conditions which enable private enterprise
to make its full contribution to the development
process;
‘‘(5) to foster private initiative and competition
and discourage monopolistic practices;
‘‘(6) to further to the greatest degree possible,
in a manner consistent with its goals, the balance-
of-payments and employment objectives of the
United States;
‘‘(7) to consider in the conduct of its operations
the extent to which the governments of eligible coun-
tries respect human rights, labor rights, and the
need to support sound environmental practices and
policies;
‘‘(8) to conduct its activities in consonance with
the international trade, investment, and financial
policies of the United States Government, and to
seek to support those developmental projects having
positive trade benefits for the United States; and
‘‘(9) to advise and assist, within its field of
competence, interested agencies of the United States
and other organizations, both public and private, na-
tional and international, with respect to projects and
programs relating to the development of private en-
terprise in eligible countries and areas.
‘‘SEC. 232. STOCK OF THE CORPORATION; ORGANIZATION
AND MANAGEMENT.
‘‘(a) STOCK.—The Secretary of the Treasury shall
hold the capital stock of the Corporation.
‘‘(b) STRUCTURE OF THE CORPORATION.—The Cor-
poration shall have a Board of Directors, a President, an
Executive Vice President, and such other officers and staff
as the President of the Corporation may determine.
‘‘(c) BOARD OF DIRECTORS.—
‘‘(1) IN GENERAL.—All powers of the Corpora-
tion shall vest in and be exercised by or under the
authority of the Board, which shall consist of 15 Di-
rectors (including the Chair, the Executive Vice
Chair, and the Vice Chair). Eight Directors shall
constitute a quorum for the transaction of business.
‘‘(2) COMPOSITION OF THE BOARD.—
‘‘(A) CHAIR.—The Chair of the Board
shall be the President of the Corporation, ex
officio.
‘‘(B) EXECUTIVE VICE CHAIR.—The Exec-
utive Vice Chair of the Board shall be the Ad-
ministrator of the Agency for International De-
velopment, ex officio.
‘‘(C) VICE CHAIR.—The Vice Chair of the
Board shall be the United States Trade Rep-
resentative, ex officio, or, if so designated by
the United States Trade Representative, a Dep-
uty United States Trade Representative.
‘‘(D) PUBLIC SECTOR DIRECTORS.—(i) In
addition to the directors provided for in sub-
paragraphs (A), (B), and (C), four Directors
who are officers or employees of the Govern-
ment of the United States, including an officer
or employee of the Department of Labor, shall
be designated by and shall serve at the pleasure
of the President of the United States.
‘‘(ii) The Directors designated under this
subparagraph shall receive no additional com-
pensation by virtue of their service as such a
Director.
‘‘(E) PRIVATE
SECTOR
DIRECTORS.—(i)
Eight Directors who are not otherwise officers
or employees of the Government of the United
States shall be appointed by the President of
the United States, by and with the advice and
consent of the Senate. Of these, at least—
‘‘(I) two shall be experienced in small
business;
‘‘(II) one shall be experienced in orga-
nized labor; and
‘‘(III) one shall be experienced in so-
cial and economic development issues.
‘‘(ii) Each Director appointed under this
subparagraph shall be appointed for a term of
not more than 3 years. The terms of not more
than 3 such Directors shall expire in any 1
year. Such Directors shall serve until their suc-
cessors are appointed and qualified. Directors
may be reappointed to subsequent terms.
‘‘(iii) Each Director appointed under this
subparagraph shall be compensated at the daily
equivalent of the annual rate of pay in effect
for level IV of the Executive Schedule under
section 5315 of title 5, United States Code, for
each day (including travel time) during which
such Director is actually engaged in the busi-
ness of the Corporation, and may be paid travel
or transportation expenses to the extent author-
ized for employees serving intermittently in the
Government service under section 5703 of title
5, United States Code. Any such Director may
waive any such compensation.
‘‘(d) APPOINTMENT
OF
THE
PRESIDENT.—The
President of the Corporation shall be appointed by the
President of the United States, by and with the advice
and consent of the Senate, and shall serve at the pleasure
of the President. In making such appointment, the Presi-
dent shall take into account the private business experi-
ence of the appointee. The President of the Corporation
shall be its Chief Executive Officer and shall be respon-
sible for the operations and management of the Corpora-
tion, subject to bylaws and policies established by the
Board.
‘‘(e) OFFICERS AND STAFF.—
‘‘(1) EXECUTIVE VICE PRESIDENT.—The Exec-
utive Vice President of the Corporation shall be ap-
pointed by the President of the United States, by
and with the advice and consent of the Senate, and
shall serve at the pleasure of the President.
‘‘(2) OTHER OFFICERS AND STAFF.—(A) The
Corporation may appoint such other officers and
such employees (including attorneys) and agents as
the Corporation considers appropriate.
‘‘(B) The officers, employees, and agents ap-
pointed under this subsection shall have such func-
tions as the Corporation may determine.
‘‘(C) Of the officers, employees, and agents ap-
pointed under this paragraph, 20 may be appointed
without regard to the provisions of title 5, United
States Code, governing appointments in the competi-
tive service, may be compensated without regard to
the provisions of chapter 51 or subchapter III of
chapter 53 of such title, and shall serve at the pleas-
ure of the Corporation.
‘‘(D) Under such regulations as the President
of the United States may prescribe, any individual
appointed under subparagraph (C) may be entitled,
upon removal (except for cause) from the position to
which the appointment was made, to reinstatement
to the position occupied by that individual at the
time of appointment or to a position of comparable
grade and pay.
‘‘SEC. 233. INVESTMENT INSURANCE, FINANCING, AND
OTHER PROGRAMS.
‘‘(a) INVESTMENT INSURANCE.—
‘‘(1) RISKS FOR WHICH INSURANCE ISSUED.—
The Corporation is authorized to issue insurance,
upon such terms and conditions as the Corporation
may determine, to eligible investors assuring protec-
tion in whole or in part against any or all of the fol-
lowing risks with respect to projects which the Cor-
poration has approved:
‘‘(A) Inability to convert into United
States dollars other currencies, or credits in
such currencies, received as earnings or profits
from the approved project, as repayment or re-
turn of the investment in the project, in whole
or in part, or as compensation for the sale or
disposition of all or any part of the investment.
‘‘(B) Loss of investment, in whole or in
part, in the approved project due to expropria-
tion or confiscation by action of a foreign gov-
ernment.
‘‘(C) Loss due to war, revolution, insurrec-
tion, or civil strife.
‘‘(D) Loss due to business interruption
caused by any of the risks set forth in subpara-
graphs (A), (B), and (C).