Title: Foreign Trade Modernization Act of 2020
Policy area: Foreign Trade and International Finance

Summary:
Foreign Trade Modernization Act of 2020
This bill abolishes the United States and Foreign Commercial Service and transfers from the Department of Commerce to the Department of State all functions that were authorized to be performed by the service under any statute, reorganization plan, executive order, or other provision of law. Specifically, the bill transfers to the State Department all contracts, property, records, and unexpended balances of funds, as well as all personnel.
Further, the Bureau of Economic and Business Affairs and the relevant diplomatic missions shall, through specified activities, emphasize (1) the promotion of exports of goods and services from the United States, particularly by small and medium-sized businesses; and (2) the protection of U.S. business interests abroad.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7408 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 7408

 To abolish the United States and Foreign Commercial Service, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 29, 2020

Mr. McCaul (for himself and Mr. Cuellar) introduced the following bill; 
which was referred to the Committee on Foreign Affairs, and in addition 
  to the Committees on Financial Services, and Small Business, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
 To abolish the United States and Foreign Commercial Service, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Foreign Trade Modernization Act of 
2020''.

SEC. 2. ABOLISHMENT OF UNITED STATES AND FOREIGN COMMERCIAL SERVICE.

    (a) In General.--The United States and Foreign Commercial Service 
is abolished.
    (b) Transfer of Functions.--There are transferred to the Secretary 
of State all functions that, on the day before the date of the 
enactment of this Act, were authorized to be performed by the United 
States and Foreign Commercial Service under any statute, reorganization 
plan, Executive order, or other provision of law.

SEC. 3. TRANSFER AND ALLOCATION OF PROPERTY AND APPROPRIATIONS.

    The Secretary of Commerce shall transfer to the Secretary of State 
all contracts, property, records, and unexpended balance of 
appropriations, authorizations, allocations, and other funds employed, 
held, used, arising from, available to, or to be made available in 
connection with the functions of the United States and Foreign 
Commercial Service transferred under section 2(b), as may be necessary 
to carry out this Act.

SEC. 4. TRANSFER OF PERSONNEL.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act--
            (1) the Secretary of Commerce shall transfer to the 
        Department of State those individuals who on the day before the 
        date of the enactment of this Act, were officers or employees 
        of the United States and Foreign Commercial Service; and
            (2) the Secretary of State shall, in accordance with 
        subsections (b) and (c), receive those individuals into the 
        Foreign Service of the United States and convert them, if need 
        be, to the appropriate class in the Foreign Service Schedule 
        established under the Foreign Service Act of 1980.
    (b) New Positions.--
            (1) In general.--Those individuals transferred to the 
        Department of State under subsection (a) shall be deemed 
        economic officers of the Foreign Service and shall not be 
        subject to any exam or training under the Foreign Service Act 
        of 1980 as a condition of assuming such position.
            (2) Conforming amendment regarding title change of certain 
        officers of the foreign service.--Subsection (d) of section 708 
        of the Foreign Service Act of 1980 (22 U.S.C. 4028) is amended 
        by striking ``and commercial'' before ``officers''.
            (3) Savings provision regarding certain officers of the 
        foreign service subject to title change.--Any individual in the 
        Foreign Service who as of the day before the date of the 
        enactment of this Act is a commercial officer shall be known 
        and referred to as an economic officer on and after such date, 
        and shall otherwise--
                    (A) maintain his or her grade, rank, and class in 
                the Foreign Service Schedule with the same tenure held 
                immediately preceding such title change; and
                    (B) maintain his or her same rate of basic pay or 
                basic salary rate immediately preceding such title 
                change.
    (c) Savings Provision Regarding Certain Officers or Employees of 
the United States and Foreign Commercial Service.--Any individual 
transferred to the Department of State under subsection (a) shall--
            (1) maintain his or her grade, rank, and class in the 
        Foreign Service Schedule with the same tenure held immediately 
        preceding transfer;
            (2) maintain his or her same rate of basic pay or basic 
        salary rate immediately preceding transfer; and
            (3) be made subject to the Foreign Service Act of 1980 and 
        any other law, rule, regulation, administrative action, and 
        Executive order governing the Foreign Service of the United 
        States.

SEC. 5. INCIDENTAL DISPOSITIONS.

    The Director of the Office of Management and Budget, if requested 
by the Secretary of State, shall make such incidental dispositions of 
personnel, assets, liabilities, grants, contracts, property, records, 
and unexpended balances of appropriations, authorizations, allocations, 
and other funds held, used, arising from, available to, or to be made 
available in connection with the functions of the United States and 
Foreign Commercial Service transferred under section 2(b), as may be 
necessary to carry out this Act.

SEC. 6. SAVINGS PROVISION.

     All orders, determinations, rules, regulations, permits, 
agreements, registrations, privileges, and other administrative 
actions--
            (1) that have been issued, made, granted, or allowed to 
        become effective by the President, any Federal agency or 
        official thereof, or by a court of competent jurisdiction, in 
        the performance of functions exercised by the United States and 
        Foreign Commercial Service on the day before the date of the 
        enactment of this Act; and
            (2) that are in effect or were final as of the date of the 
        enactment of this Act, or are to become effective on or after 
        the date of the enactment of this Act,
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with law by 
the President, the Secretary of State, or other authorized official, a 
court of competent jurisdiction, or by operation of law.

SEC. 7. ACTIVITIES TO PROMOTE EXPORTS OF GOODS AND SERVICES FROM THE 
              UNITED STATES.

    The Championing American Business through Diplomacy Act of 2019 
(enacted as title VII of subtitle H of title I of division J of the 
Further Consolidated Appropriations Act, 2020 (Public Law 116-94; 22 
U.S.C. 9901 et seq.)) is amended by adding at the end the following:

``SEC. 712. ACTIVITIES TO PROMOTE EXPORTS OF GOODS AND SERVICES FROM 
              THE UNITED STATES.

    ``(a) In General.--The Secretary of State, acting through the 
Assistant Secretary for Economic and Business Matters and the relevant 
chiefs of mission, shall place primary emphasis on the promotion of 
exports of goods and services from the United States, particularly by 
small and medium-sized businesses, and on the protection of United 
States business interests abroad by carrying out activities such as the 
following:
            ``(1) Identifying United States businesses with the 
        potential to export goods and services and providing such 
        businesses with advice and information on establishing export 
        businesses.
            ``(2) Providing United States exporters with information 
        and advice on the necessary adaptation of product design and 
        marketing strategy to meet the differing cultural and technical 
        requirements of foreign countries.
            ``(3) Providing United States exporters with actual leads 
        and an introduction to contacts within foreign countries.
            ``(4) Assisting United States exporters in locating 
        reliable sources of business services in foreign countries and 
        in their dealings with foreign governments and enterprises 
        owned by foreign governments.
            ``(5) Assisting the coordination of the efforts of State 
        and local agencies and private organizations that seek to 
        promote United States business interests in foreign countries 
        so as to maximize the effectiveness and minimize the 
        duplication of efforts of such agencies and organizations.
            ``(6) Utilizing district offices established under 
        subsection (b) as one-stop shops for United States exporters 
        by--
                    ``(A) providing exporters with information on all 
                export promotion and export finance activities of the 
                Federal Government;
                    ``(B) assisting exporters in identifying which 
                Federal programs may be of greatest assistance; and
                    ``(C) assisting exporters in making contact with 
                such identified Federal programs.
            ``(7) Providing United States exporters and export finance 
        institutions with information on all financing and insurance 
        programs of the Export-Import Bank of the United States, the 
        United States International Development Finance Corporation, 
        the Trade and Development Program, and the Small Business 
        Administration, including providing assistance in completing 
        applications for such programs and working with exporters and 
        export finance institutions to address any deficiencies in such 
        applications that have been submitted.
    ``(b) District Offices.--The Secretary of State shall establish, or 
maintain if transferred to the Secretary under the Foreign Trade 
Modernization Act of 2020, district offices of the Foreign Service in 
any United States city in a region in which the Secretary, in 
consultation with the Secretary of Commerce, determines that there is a 
need for Federal Government export assistance.
    ``(c) Cooperation in Federal Financing and Insurance Programs.--To 
assist the Foreign Service in carrying out subsection (a)(7), the 
Export-Import Bank of the United States, the United States 
International Development Finance Corporation, the Trade and 
Development Program, and the Small Business Administration shall each--
            ``(1) provide to the Foreign Service complete and current 
        information on all the programs and financing practices of each 
        such agency; and
            ``(2) undertake a training program regarding such programs 
        and practices for economic officers of the Foreign Service.''.

SEC. 8. CONFORMING AMENDMENTS.

    (a) Omnibus Trade and Competitiveness Act of 1988.--
            (1) In general.--The following provisions of the Omnibus 
        Trade and Competitiveness Act of 1988 are repealed:
                    (A) Section 2301 (15 U.S.C. 4721).
                    (B) Subsection (c) of section 2303 (15 U.S.C. 
                4723).
                    (C) Section 2306 (15 U.S.C. 4725).
            (2) Conforming amendment.--Section 2303 of such Act (15 
        U.S.C. 4723) is amended by redesignating subsection (d) as 
        subsection (c).
    (b) Title 5, United States Code.--Section 5315 of title 5, United 
States Code, is amended by striking ``Assistant Secretary of Commerce 
and Director General of the United States and Foreign Commercial 
Service.''.
    (c) Trade Facilitation and Trade Enforcement Act of 2015.--Section 
505(c)(1) of the Trade Facilitation and Trade Enforcement Act of 2015 
(15 U.S.C. 4721a(c)(1)) is amended by striking ``acting through the 
head of the United States Foreign and Commercial Service'' and 
inserting ``in consultation with the Assistant Secretary of State for 
Economic and Business Affairs''.
    (d) Foreign Service Act of 1980.--The Foreign Service Act of 1980 
is amended--
            (1) in section 202(a) (22 U.S.C 3922(a))--
                    (A) by striking paragraph (3);
                    (B) by redesignating paragraph (4) as paragraph 
                (3); and
                    (C) by moving the margins of paragraph (3) (as so 
                redesignated) two ems to the left; and
            (2) in section 305(c) (22 U.S.C. 3945(c))--
                    (A) by striking ``(1) Appointments to the Senior 
                Foreign Service by the Secretary of Commerce shall be 
                excluded'' and inserting ``Appointments to the Senior 
                Foreign Service by the Secretary of Commerce made on or 
                before the date of the enactment of the Foreign Trade 
                Modernization Act of 2020 shall be excluded''; and
                    (B) by striking paragraphs (2) and (3).
    (e) References.--Any reference in any statute, reorganization plan, 
Executive order, regulation, agreement, determination, or other 
official document or proceeding to--
            (1) the Assistant Secretary of Commerce and Director 
        General of the Commercial Service shall be deemed to refer to 
        the Secretary of State; and
            (2) the United States and Foreign Commercial Service shall 
        be deemed to refer to the Department of State.
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