Export-Import Bank Reform and Reauthorization Act of 2015

Bill: 114-hr-597
Sponsor: full_name: Rep. Fincher, Stephen Lee [R-TN-8]
Introduced: 2015-01-28
Policy area: Foreign Trade and International Finance
Subjects: Accounting and auditing

Banking and financial institutions regulation

Climate change and greenhouse gases

Competitiveness, trade promotion, trade deficits

Computers and information technology

Congressional oversight

Credit and credit markets

Environmental assessment, monitoring, research

Executive agency funding and structure

Export-Import Bank of the United States

Fraud offenses and financial crimes

Government employee pay, benefits, personnel management

Government ethics and transparency, public corruption

Government information and archives

Government lending and loan guarantees

Government studies and investigations

Inflation and prices

Insurance industry and regulation

Interest, dividends, interest rates

Public-private cooperation

Small business

Trade agreements and negotiations
Latest action: action_date: 2015-10-29
text: Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 282.

Summaries:
action_date: 2015-01-28
action_desc: Introduced in House
text: <p><b>Reform Exports and Expand the American Economy Act</b></p> <p>This bill amends the Export-Import Bank Act of 1945 to establish an Office of Ethics, headed by a Chief Ethics Officer, in the Export-Import Bank of the United States.</p> <p>The review of Bank fraud controls by the Government Accountability Office (GAO) shall now be quadrennial instead of once only, and followed by reports to Congress.</p> <p>The Board of Governors of the Federal Reserve System shall report to Congress: (1) semiannually on the terms and conditions (including interest rates, maturities, and credit standards) that private financial institutions apply in providing export finance; and (2) annually on the steps the Bank has taken to adjust the pricing of products offered, and the credit standards used, to avoid crowding out private export finance.</p> <p>The Bank's Board of Directors must include in their annual report to Congress any recommendations about countries with whom and in which it should not be doing business.</p> <p>The GAO must conduct annual audits of the Bank's loan, guarantee, insurance, and credit programs.</p> <p>The Chief Ethics Officer shall draft a Code of Ethics prescribing strict and definite standards of official conduct for all Bank directors, officers, and employees, including conflict-of-interest prohibitions.</p> <p>The Bank shall study the extent to which the products it offers are available and used by companies that export services and related goods.</p> <p>The Bank must also implement policies to accept: (1) electronic documents whenever possible, including copies of bills of lading, certifications, and compliance documents; and (2) electronic payments in all of its programs.</p> <p>If the Bank issues any report to Congress or any congressional committee containing accounting information that is not prepared using generally accepted accounting principles (GAAPs), the Bank must issue a second report with the same accounting information prepared using GAAPs.</p> <p>The Bank is made lender of last resort to privately owned foreign applicants (other than financial institutions), which must first try to obtain competitive financing for the transaction in question without support from the Overseas Private Investment Corporation or the Small Business Administration.</p> <p>Bank directors who are neither Chairman nor Vice Chairman of the Board shall constitute the Board's Audit Committee.</p> <p>The President of the United States (U.S. President) must report to specified congressional committees on Bank programs that may be fully or partially privatized.</p> <p>The Bank's Inspector General is directed to audit the Bank's portfolio risk management procedures, including its implementation of the duties assigned to the Chief Risk Officer (whose position is established by this Act).</p> <p>The Bank must retain at least 30% of total net earnings as a provision for possible losses.</p> <p>Two terms is made the term limit for any Bank President.</p> <p>The U.S. President must propose to Congress a strategy to pursue with other major exporting countries, over a 10-year period, elimination of all subsidized export-financing programs, tied aid, export credits, and all other forms of government-supported export subsidies. This shall also involve negotiations specifically with countries that are not members of the Organization for Economic Co-operation and Development to bring them into a multilateral agreement establishing rules and limitations on officially supported export credits.</p> <p>$130 billion is made the absolute limit, regardless of fiscal year, for the aggregate amount of outstanding Bank loans, guarantees, and insurance.</p> <p>The general duties of the Bank's Chief Risk Officer are specified.</p> <p>The Bank is required to develop and implement policies that incentivize transactions in which third parties, especially private sector lenders and exporters, share risks of loss with the Bank.</p> <p>The Bank is reauthorized and extended through FY2019, as well as its authority to finance export sales of nonlethal defense articles or services whose primary end (dual) use will be for civilian purposes.</p> <p>The Bank is directed to:</p> <ul> <li>study its programs, products, and policies supporting exports from small business concerns and medium-sized enterprises in the United States, including those involving the implementation of the export credit insurance program, delegated lending authority, and direct Bank loans; and</li> <li>determine the extent to which its policies adequately meet the needs of small business concerns and medium-sized enterprises in obtaining Bank financing to support jobs in the United States through exports.</li> </ul> <p>The denial of funding is continued through FY2019 with respect to the Bank's Supplemental Guidelines for High Carbon Intensity Projects.</p> <p>The figure of $10 million is increased to $25 million, subject to annual adjustments for inflation, in cases where:</p> <ul> <li>the Bank seeks to ensure that U.S. insurance companies are accorded a fair and open competitive opportunity to provide insurance for transactions involving a long-term loan or guarantee of this minimum amount,</li> <li>Bank procedures for public disclosure of environmental assessments and mandatory supplemental environmental reports apply to any transaction involving a project for which long-term support from the Bank is requested in at least this amount, or </li> <li>it is the sense of Congress that Bank policies and procedures should not prohibit small business specialists from approving applications for working capital loans, guarantees, and insurance in support of exports which have a value less than this amount.</li> </ul>

action_date: 2015-10-27
action_desc: Passed House amended
text: <p><b>Export-Import Bank Reform and Reauthorization Act of 2015</b></p> <p>TITLE I--TAXPAYER PROTECTION PROVISIONS AND INCREASED ACCOUNTABILITY </p> <p>(Sec. 101) This bill amends the Export-Import Bank Act of 1945 to set at $135 billion, for each of FY2015-FY2019, the authorized aggregate amount of loans, guarantees, and insurance the Export-Import Bank may have outstanding at any time.</p> <p>If the rate at which borrowing entities are in default on a payment obligation (default rate) is 2% or more for a quarter, the Bank may not exceed the amount of loans, guarantees, and insurance outstanding on the last day of that quarter until the default rate becomes less than 2%. </p> <p>(Sec. 102) The Bank shall build to and hold in reserve, to protect against future losses, at least 5% of its aggregate amount of disbursed and outstanding loans, guarantees, and insurance.</p> <p>(Sec. 103) This bill amends the Export-Import Bank Reauthorization Act of 2012 (EIBRA) to require the Government Accountability Office's quadrennial review of the adequacy of the design and effectiveness of the Bank's fraud controls to include review of the Bank's compliance with these controls.</p> <p>(Sec. 104) An Office of Ethics is established within the Bank to recommend administrative actions to establish or enforce standards of official conduct.</p> <p>(Sec. 105) A Chief Risk Officer of the Bank is established to oversee all issues relating to risk within the Bank.</p> <p>(Sec. 106) A Risk Management Committee is also established to:</p> <ul> <li>oversee periodic stress testing on the entire Bank portfolio and the monitoring of industry, geographic, and obligor exposure levels; and </li> <li>review all required reports on the Bank's default rate. </li> </ul> <p>(Sec. 107) The Bank's Inspector General shall conduct an audit or evaluation of the Bank's portfolio risk management procedures, including its implementation of the duties assigned to the Chief Risk Officer.</p> <p>(Sec. 108) The Bank may establish a pilot program under which it may enter into contracts and other arrangements to share risks associated with its provision of guarantees, insurance, or credit, or participation in the extension of credit.</p> <p> The aggregate amount of liability the Bank may transfer through risk-sharing under a contract or other arrangement may not exceed $1 billion, nor a total of $10 billion during a fiscal year.</p> <p>TITLE II--PROMOTION OF SMALL BUSINESS EXPORTS </p> <p>(Sec. 201) This bill directs the Bank to: </p> <ul> <li>increase from 20% to 25% of its lending authority the amount made available to finance direct exports by small business concerns, and </li> <li>include in its annual report to Congress a report on its programs for U.S. businesses with less than $250 million in annual sales. </li> </ul> <p>TITLE III--MODERNIZATION OF OPERATIONS</p> <p>(Sec. 301) This bill requires the Bank to implement policies to accept electronic payments and transaction documents.</p> <p>(Sec. 302) The Bank's authority to use a portion of its surplus to update its information technology systems shall extend through FY2019.</p> <p>TITLE IV--GENERAL PROVISIONS </p> <p>(Sec. 401) The bill reauthorizes through FY2019 the Bank, the Sub-Saharan Africa Advisory Committee, and authority for dual use exports (of nonlethal defense articles or services primarily for civilian use).</p> <p>(Sec. 402) The principal amounts of medium-term financing by the Bank shall be limited to $25 million.</p> <p>The bill increases from a minimum of $10 million to a minimum of $25 million the amounts of:</p> <ul> <li>long-term loans or loan guarantees the Bank shall seek to ensure that U.S. insurance companies have a fair and open competitive opportunity to insure in connection with any transaction for which the loan or guarantee is provided, </li> <li>working capital export loans and guarantees to small businesses, and </li> <li>long-term support for projects to which certain procedures apply regarding the potential beneficial and adverse environmental effects of goods and services for which direct lending and guarantee support is requested.</li> </ul> <p>If the long-term support for projects subject to environmental effects consideration is less than $25 million, the minimum threshold shall be the one established pursuant to international agreements, including the Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence, as adopted by the Organisation for Economic Co-operation and Development Council on June 28, 2012, and the risk-management framework ("Equator Principles") adopted by financial institutions for determining, assessing, and managing environmental and social risk in projects.</p> <p>TITLE V--OTHER MATTERS</p> <p>(Sec. 501) This bill prohibits the Bank from:</p> <ul> <li>denying an application for financing based solely on the industry, sector, or business that the application concerns; or </li> <li>promulgating or implementing policies that discriminate against an application based solely on the industry, sector, or business that the application concerns. </li> </ul> <p>These prohibitions apply only to applications for Bank financing for projects concerning the exploration, development, production, or export of energy sources and the generation or transmission of electrical power, or combined heat and power, regardless of the energy source involved.</p> <p>(Sec. 502) The EIBRA is amended to require the President instead of the Department of the Treasury to initiate and pursue negotiations to end export credit financing. </p> <p>The President shall propose to Congress a strategy to pursue with other major exporting countries, including Organisation for Economic Co-operation and Development (OECD) members and non-OECD members, to eliminate over a 10-year period subsidized export-financing programs, tied aid, export credits, and all other forms of government-supported export subsidies.</p> <p>(Sec. 503) The Bank shall study the extent to which products it offers are available and used by companies that export information and communications technology services and related goods.</p>

tv_txt: I 114th CONGRESS 1st Session H. R. 597 IN THE HOUSE OF REPRESENTATIVES January 28, 2015 Mr. Fincher (for himself, Mr. Wilson of South Carolina , Mr. Aderholt , Mr. Hunter , Mr. Stivers , Mr. Collins of New York , Mr. Rodney Davis of Illinois , Mr. Dold , Mr. Cole , Mr. Hultgren , Mr. Lucas , Mr. Pitts , Mr. Reed , Mrs. Wagner , Mr. Bost , Mr. Harper , Mr. King of New York , Mr. Newhouse , Mr. Tiberi , Mr. Gibbs , Mr. Crenshaw , Mr. Long , Mr. Rogers of Alabama , Mr. Amodei , Mrs. Walorski , Mr. Graves of Missouri , Mr. Boustany , Mr. Joyce , Mr. Rice of South Carolina , Mr. Mica , Mr. Bucshon , Mr. Meehan , Mr. Costello of Pennsylvania , Mr. Thompson of Pennsylvania , Mr. Turner , Mr. Gibson , Mr. Hanna , Mr. Kelly of Pennsylvania , Mr. MacArthur , Mr. Shimkus , Mr. Barletta , Mr. Cramer , Mr. Shuster , Mr. Reichert , Mr. LoBiondo , Mr. Kinzinger of Illinois , Mr. Johnson of Ohio , Mr. Marino , Mr. Mullin , Ms. Stefanik , Mr. Katko , Mr. Crawford , Mr. Jolly , Mr. Calvert , Mrs. Comstock , Mr. Schock , Mrs. Hartzler , and Mr. Valadao ) introduced the following bill; which was referred to the Committee on Financial Services A BILL To reauthorize the Export-Import Bank of the United States, and for other purposes.

1. Short title This Act may be cited as the Reform Exports and Expand the American Economy Act . 2. Table of contents The table of contents of this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. Title I—Improving Transparency of the Export-Import Bank of the United States Sec. 101. Making the Office of Ethics statutory. Sec. 102. Review of fraud controls. Sec. 103. Review of Bank product pricing and credit standards to avoid crowding out of private export finance. Sec. 104. Prohibited countries. Sec. 105. Independent audit by the Comptroller General. Sec. 106. Employee certification and financial disclosure. Sec. 107. Study of financing for information and communications technology systems. Sec. 108. Electronic payments and documents. Sec. 109. Parallel GAAP reporting. Sec. 110. Making the Bank the lender of last resort for loans, attempting private financing first. Sec. 111. Audit committee. Sec. 112. Report on privatizing the Bank. Sec. 113. Independent audit of bank portfolio. Title II—Improving the Accountability of the Export-Import Bank of the United States Sec. 201. Earnings retention. Sec. 202. Office of the President and term limits. Sec. 203. Repayment as priority. Sec. 204. Negotiations to end export credit financing. Sec. 205. Limitations on outstanding loans, guarantees, and insurance. Sec. 206. Credit risk. Sec. 207. Chief Risk Officer. Sec. 208. Participation and risk-sharing by private sector lenders and exporters. Sec. 209. Reauthorization of information technology updating. Title III—Job Growth Sec. 301. Extension of authority. Sec. 302. Dual use exports. Sec. 303. Small business and medium-sized enterprises reports. Sec. 304. Medium-sized enterprises. Sec. 305. Extension of suspension of supplemental guidelines for high carbon intensity projects. Sec. 306. Updated definition of loan terms. Sec. 307. Updated loan amounts. Sec. 308. Updated environmental effects consideration. Sec. 309. Updated export amounts. Sec. 310. Inflation adjustment. I Improving Transparency of the Export-Import Bank of the United States 101. Making the Office of Ethics statutory Section 3 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635a ) is amended by adding at the end the following: (k) Office of Ethics (1) Establishment There is hereby established an Office of Ethics within the Bank, which shall oversee all ethics issues within the Bank. (2) Head of office The head of the Office of Ethics shall be the Chief Ethics Officer, who shall be appointed by the Board of Directors of the Bank, within 180 days after the date of the enactment of this paragraph, from among persons with a background in law who have experience in the fields of law and ethics, including the individual serving as a designated agency ethics official for the Bank pursuant to Ethics in Government Act of 1978. The Chief Ethics Officer shall report to the Board. (3) Duties The Office of Ethics has jurisdiction over all employees and contractors of, and matters relating to, the Bank. With respect to employees and contractors of the Bank, the Office of Ethics may— (A) recommend administrative actions to establish or enforce standards of official conduct; (B) investigate alleged violations of the Code of Official Conduct or of any applicable rules, laws, or regulations governing the performance of official duties or the discharge of official responsibilities; (C) report to appropriate Federal or State authorities substantial evidence of a violation of any law applicable to the performance of official duties that may have been disclosed in an Office of Ethics investigation, subject to approval of the report by an affirmative vote of a majority of the Board of Directors of the Bank; and (D) render advisory opinions regarding the propriety of any current or proposed conduct of employee or contractor of the Bank, and issue general guidance on such matters as necessary. . 102. Review of fraud controls Section 17(b) of the Export-Import Bank Reauthorization Act of 2012 ( 12 U.S.C. 635a–6(b) ) is amended to read as follows: (b) Review of fraud controls Not less frequently than every 4 years, the Comptroller General of the United States shall— (1) review the adequacy of the design and effectiveness of the controls used by the Export-Import Bank of the United States to prevent, detect, and investigate fraudulent applications for loans and guarantees and the compliance by the Bank with the controls, including by auditing a sample of Bank transactions, and (2) submit to the Committees on Financial Services and Appropriations of the House of Representatives and the Committees on Banking, Housing, and Urban Affairs and Appropriations of the Senate a written report regarding the findings of the review and providing such recommendations with respect to the controls as the Comptroller General deems appropriate. . 103. Review of Bank product pricing and credit standards to avoid crowding out of private export finance Section 8 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635g ) is amended by adding at the end the following: (k) Reports on private export financing and Bank pricing and credit standards (1) Private export financing The Board of Governors of the Federal Reserve System shall issue a semiannual report to the Congress on the terms and conditions (including interest rates, maturities, and credit standards) that apply in the provision of export finance by private financial institutions. (2) Bank pricing and credit standards The Bank shall issue an annual report to the Congress on the steps taken by the Bank to adjust the pricing of products offered, and the credit standards used, by the Bank to avoid crowding out private export finance. . 104. Prohibited countries Section 8 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635g ), as amended by section 103 of this Act, is amended by adding at the end the following: (l) Recommendations regarding prohibited countries The Board of Directors of the Bank, in consultation with Congress, the President, and the Secretary of State, shall develop recommendations annually regarding the countries with whom and in which the Bank should not be doing business, and the Bank shall include the recommendations in its annual report to the Congress under subsection (a). . 105. Independent audit by the Comptroller General Section 3(c) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635a(c) ) is amended by redesignating paragraph (10) as paragraph (11) and inserting after paragraph (9) the following: (10) Independent audit by the Comptroller General (A) Annual audit The Comptroller General of the United States shall, before the end of the 1-year period beginning on the date of the enactment of this paragraph and each year thereafter, carry out an audit of the Bank’s loan, guarantee, insurance, and credit programs. (B) Report At the completion of each audit required under subparagraph (A), the Comptroller General shall issue a report to the Bank and the Congress containing— (i) all findings and determinations made in carrying out the audit; and (ii) any recommendations that the Comptroller General may have— (I) to assist the Bank in fulfilling the accounting and reporting responsibilities of the Bank; (II) to ensure that the Bank has adequate administrative and financial controls; and (III) with respect to procedures for the internal audit functions of, and the use of independent accountants by the Bank. . 106. Employee certification and financial disclosure Section 3(e) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635a(e) ) is amended by adding at the end the following: (3) Ethics (A) Code of ethics (i) In general The Chief Ethics Officer shall draft a Code of Ethics that sets out strict and definite standards of official conduct for all Bank directors, officers, and employees, which Code shall include a policy that prohibits conflicts of interest, as described in paragraph (1) of this subsection, and other policies, prohibitions, and restrictions that the Chief Ethics Officer deems appropriate. (ii) Considerations In drafting the Code of Ethics, the Chief Ethics Officer shall consider the Principles of Ethical Conduct for Government Officers and Employee set forth in Executive Order 12731 (Oct. 17, 1990). (iii) Consistency with Ethics in Government Act of 1978 The Chief Ethics Officer shall ensure that the Code of Ethics is consistent with the Ethics in Government Act of 1978 and the regulations promulgated under such Act. (iv) Effectiveness; amendment The Code of Ethics (and an amendment to the Code) shall take effect on approval by the Board. The Code of Ethics may be amended only on the recommendation of the Chief Ethics Officer. (v) Annual employee certifications The Board, in consultation with the Chief Ethics Officer, shall implement a policy that requires all Bank directors, officers, and employees to certify annually that they have read, understand, and complied with and will continue to comply with the Code of Ethics. The annual certifications shall contain a statement that notifies the signatory that section 1001 of title 18, United States Code, applies to the certification. (B) Financial disclosure (i) In general Within 180 days after the date of the enactment of this paragraph, the Board, in consultation with the Chief Ethics Officer, shall prepare a financial disclosure form for Covered Individuals, which form shall— (I) require information about assets, income, debts, and any other financial information that the Board deems appropriate for ensuring that a Covered Individual is in compliance with the Code of Ethics established under subparagraph (A); and (II) be no less extensive than financial reports required to be filed under title I of the Ethics in Government Act of 1978 and the regulations promulgated under such Act. (ii) Financial reporting policy The Board, in consultation with the Chief Ethics Officer, shall implement a policy that— (I) requires each Covered Individual and the spouse of the Covered Individual to annually complete the financial disclosure form and submit the completed form to the General Counsel or his or her designee for review; and (II) allows any Covered Individual who is required to file financial reports under title I of the Ethics in Government Act of 1978 or any other Federal law to file the financial reports under such title or other law in lieu of the financial disclosure form described in this subparagraph, but the Board may require those who do so to supplement the financial report with all information required to be disclosed under this subparagraph. (iii) Covered Individual defined In this subparagraph, the term Covered Individual means any Bank director, officer, employee, or contractor with the ability to affect any Bank decision relating to financing, funding, insuring, or otherwise providing backing to any company or project. (iv) Availability of completed financial disclosure forms (I) In general The Bank shall make completed financial disclosure forms available to the Office of Inspector General for the Bank. (II) Prohibitions A completed financial disclosure form shall not be made available— (aa) to another Bank director, officer, employee, attorney, or agent, except as necessary to ensure compliance of a Covered Individual with this subparagraph, the Code of Ethics, or any applicable law; or (bb) to the public. (C) Rule of interpretation Nothing in this paragraph shall supersede, modify, change, or otherwise affect any requirement, procedure, or restriction applicable to a Bank employee, officer, or director under the Ethics in Government Act of 1978 that applies in addition to the requirements, procedures, and restrictions applicable to a Bank employee, officer, or director under this paragraph. . 107. Study of financing for information and communications technology systems (a) Analysis of the information and communications technology industry use of bank products The Export-Import Bank of the United States (in this section referred to as the Bank ) shall conduct a study of the extent to which the products offered by the Bank are available and used by companies that export services and related goods. In conducting the study, the Bank shall examine the following: (1) The impediments to the use of Bank products by the companies. (2) The number of jobs in the United States that are supported by the export of goods and services, and the degree to which access to financing will increase exports. (3) The reduction in the financing by the Bank of information and communications technology (in this section referred to as ICT ) services from 2003 through 2013. (4) The impediments posed by local content requirements to ICT companies that seek to use a Bank product. (5) The activities of foreign export credit agencies to facilitate the export of ICT goods and services. (6) Specific proposals for how the Bank, using its authority and products, could provide additional financing for ICT goods and services, including through risk-sharing with other export credit agencies and other third parties. (7) Ways in which the Bank can take into account the full global ICT goods and services supply chain—in particular, the ultimate manufacturer or provider of the finished goods or services that would result from the supply chain—in making credit and risk determinations and the creditworthiness of the ultimate purchaser. (8) Proposals for new products the Bank could offer to provide the financing, including— (A) the extent to which the Bank is authorized to offer new products; (B) the extent to which the Bank would need additional authority to offer the new products to meet the needs of the ICT industry; (C) specific proposals for changes in law that would enable the Bank to provide increased financing for ICT goods and services in compliance with the credit and risk standards of the Bank; (D) specific proposals that would enable the Bank to provide increased outreach to the ICT industry about the products the Bank offers; and (E) specific proposals for changes in law that would enable the Bank to provide the financing to build ICT infrastructure in compliance with the credit and risk standards of the Bank so as to allow for market access opportunities for United States ICT companies to operate services on the infrastructure being financed on receipt of funds from the Bank. (b) Report Within 180 days after the date of the enactment of this Act, the Bank shall submit to the Congress a report that contains the results of the study required by subsection (a). 108. Electronic payments and documents Section 2(b)(1)(E) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635(b)(1)(E) ) is amended by adding at the end the following: (xi) Electronic documents Not later than the end of the 2-year period beginning on the date of the enactment of this clause, the Bank shall implement policies to accept electronic documents whenever possible, including copies of bills of lading, certifications, and compliance documents. (xii) Electronic payments Not later than the end of the 2-year period beginning on the date of the enactment of this clause, the Bank shall implement policies to accept electronic payments in all of its programs. . 109. Parallel GAAP reporting Section 8 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635g ), as amended by sections 103 and 104 of this Act, is amended by adding at the end the following: (m) Parallel GAAP reporting With any report issued by the Bank to the Congress or any committee of the Congress that contains accounting information that is not prepared using generally accepted accounting principles, the Bank shall issue a 2nd report providing the same accounting information prepared using generally accepted accounting principles. . 110. Making the Bank the lender of last resort for loans, attempting private financing first Section 2 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635 ) is amended by adding at the end the following: (k) Applicants for Bank assistance required To demonstrate inability To obtain credit elsewhere The Bank shall not guarantee, insure, or extend credit, or participate in an extension of credit in connection with a transaction, to a privately owned foreign applicant, other than a financial institution, unless the applicant demonstrates to the Bank that— (1) the applicant has sought, and has been unable to obtain, competitive financing for the transaction without any support from the Overseas Private Investment Corporation or the Small Business Administration; or (2) financing from a foreign export credit agency is available to the applicant to support comparable foreign goods and services competing with the United States exports that would be financed by the Bank through the application. . 111. Audit committee Section 3(c) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635a(c) ), as amended by section 105 of this Act, is amended by redesignating paragraph (10) as paragraph (11) and inserting after paragraph (9) the following: (10) Audit committee (A) Membership (i) In general In addition to such other duties as they may be appointed to perform under subparagraph (5), the directors who are neither Chairman nor Vice Chairman of the Board shall constitute the Audit Committee of the Board. (ii) Special rule If that there is only 1 director who is neither Chairman nor Vice Chairman of the Board, the Chief Risk Officer of the Bank shall be a temporary member of the Audit Committee until a 2nd Bank director who is neither Chairman nor Vice Chairman of the Board is appointed to the Board. (B) Duties (i) Within 1 year after the date of the enactment of this paragraph, the Audit Committee shall develop and implement a program to audit, on a regular and routine basis, the loan, guarantee, insurance, and credit programs of the Bank. (ii) The Audit Committee shall— (I) provide assistance to the Board in fulfilling the accounting and reporting responsibilities of the Board; (II) evaluate whether the Bank has adequate administrative and financial controls; (III) review the financial statements prepared by management for distribution to the Congress and the public; and (IV) provide direction over the internal audit function and the independent accountants of the Bank. (C) Reports The Audit Committee shall report to the Board regularly on its activities but may act independently of the Chairman and Vice Chairman. (D) Procedural rules (i) Quorum 2 members shall constitute a quorum of the Audit Committee. (ii) Action only by majority vote The Audit Committee may act only by majority vote. . 112. Report on privatizing the Bank Within 270 days after the date of the enactment of this Act, the President, in consultation with the Advisory Committee of the Bank, the Comptroller of the Currency, and the Governors of the Federal Reserve Board, shall submit to the Committees on Appropriations and Financial Services of the House of Representatives and the Committees on Appropriations and Banking, Housing, and Urban Affairs of the Senate a report on the programs of the Bank that may be fully or partially privatized, which report shall— (1) consider, but not be limited to, the establishment of a public-private partnership to create a market window, as allowed under Section 15 of the Export-Import Bank Act of 1945, to compete against similar foreign-supported market windows to maximize private-sector participation; (2) include an evaluation of whether the administration of the insurance and working-capital programs of the Bank could be partially or completely privatized; and (3) include an analysis of the current regulatory restrictions related to capital-allocation requirements for pre-export working capital and cross-border lending in amounts exceeding $25,000,000. 113. Independent audit of bank portfolio (a) Audit The Inspector General of the Export-Import Bank of the United States shall conduct an audit of the portfolio risk management procedures of the Bank, including a review of the implementation by the Bank of the duties assigned to the Chief Risk Officer under the Export-Import Bank Act of 1945. (b) Report Not later than 1 year after the appointment of the Chief Risk Officer of the Export-Import Bank of the United Sates, the Inspector General shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a written report containing all findings and determinations made in carrying out subsection (a). II Improving the Accountability of the Export-Import Bank of the United States 201. Earnings retention Section 2(a)(1) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635(a)(1) ) is amended by striking Net earnings of the Bank after reasonable provision for possible losses shall be used for payment of dividends on capital stock. and inserting The Bank shall retain not less than 30 percent of total net earnings as a provision for possible losses. Notwithstanding the previous sentence, during any period when the aggregate of such retained earnings is less than 10 percent of the applicable amount (as defined under section 6(a)(2)), the Bank shall retain not less than 80 percent of total net earning as a provision for possible losses. Net earnings that are not retained as a provision for possible losses shall be used for payment of dividends on capital stock. . 202. Office of the President and term limits Section 3 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635a ) is amended— (1) in subsection (b), by inserting who shall be chosen from among those individuals with at least 15 years of banking experience, before and who shall serve as chief executive ; and (2) in subsection (c)(8)(A)— (A) in clause (iii), by striking and at the end; (B) in clause (iv), by striking the period at the end and inserting ; and ; and (C) by adding at the end the following: (v) no person may serve as the President of the Bank for more than 2 terms. . 203. Repayment as priority Section 2(b)(1) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635(b)(1) ) is amended— (1) in subparagraph (B), by striking , that loans, so far as possible consistent with the carrying out of the purposes of subsection (a) of this section, shall generally be for specific purposes, and, in the judgment of the Board of Directors, offer reasonable assurance of repayment ; and (2) by striking subparagraph (C) and inserting the following: (C) The Bank shall conduct all programs of the Bank in a manner that, in the judgment of the Board of Directors, offers reasonable assurance of repayment and minimizes risk of loss. Loans made by the Bank shall be for specific purposes. . 204. Negotiations to end export credit financing Section 11 of the Export-Import Bank Reauthorization Act of 2012 ( 12 U.S.C. 635i–5 ) is amended— (1) in subsection (a)— (A) by striking Secretary of the Treasury (in this section referred to as the Secretary ) and inserting President ; and (B) in paragraph (1), by striking goal of eliminating and inserting possible goal of eliminating, before the end of the 10-year period beginning on the date of the enactment of the Reform Exports and Expand the American Economy Act, ; (2) in subsection (b), by striking Secretary each place such term appears and inserting President ; and (3) by adding at the end the following: (c) Report on strategy Not later than the end of the 180-day period beginning on the date of the enactment of this subsection, the President shall submit to the Congress a proposal, together with a strategy for achieving the proposal, that the United States Government will pursue with other major exporting countries, including members of the Organisation for Economic Co-operation and Development (OECD) and non-members of the OECD, to eliminate over a period of not more than 10 years subsidized export-financing programs, tied aid, export credits, and all other forms of government-supported export subsidies. (d) Negotiations with non-OECD countries The President shall initiate and pursue negotiations with countries that are not members of the Organisation for Economic Co-operation and Development (OECD), to bring the non-members into a multilateral agreement establishing rules and limitations on officially supported export credits. (e) Annual reports on progress of negotiations Not later than 180 days after the date of the enactment of this subsection, and annually thereafter through calendar year 2019, the Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on the progress of any negotiations described in subsection (d). . 205. Limitations on outstanding loans, guarantees, and insurance Section 6(a)(2) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635e(a)(2) ) is amended to read as follows: (2) Applicable amount In paragraph (1), the term applicable amount means $130,000,000,000. . 206. Credit risk Section 2(b)(1)(A) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635(b)(1)(A) ) is amended by inserting after (as defined in section 10(h)(3)) the following: , provided that this objective is accomplished in a manner calculated to minimize financial risk to the Bank . 207. Chief Risk Officer Section 3 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635a ), as amended by section 101 of this Act, is amended by adding at the end the following: (l) Chief Risk Officer (1) In general Subject to the approval of the Board of Directors of the Bank, the President of the Bank shall appoint a Chief Risk Officer, from among individuals with experience at a senior level in financial risk management, who— (A) shall rank not lower than senior vice president; (B) shall have as the officer’s sole function to serve as chief risk officer of the Bank; (C) shall report directly to the Board; and (D) shall be removable only by the Board. (2) Duties The Chief Risk Officer shall, in coordination with the Audit Committee of the Board of Directors, develop, implement, and manage a comprehensive process for identifying, assessing, monitoring, and reducing business risks to the Bank’s overall portfolio that may interfere with the ability of the Bank to fulfill its purposes, but may not exercise any authority over the operations of the Bank. . 208. Participation and risk-sharing by private sector lenders and exporters Section 2 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635 ), as amended by section 110 of this Act, is amended by adding at the end the following: (l) Participation and risk-Sharing by private sector lenders and exporters (1) The Bank shall develop and implement policies (in coordination and in consultation with private sector stakeholders) that incentivize transactions in which third parties share risks of loss with the Bank. In the policies, the Bank shall— (A) allow the retention of risk to be borne either by a lender or an exporter; (B) not require a lender to retain additional risk beyond the risk retained by an exporter; (C) share fees with the risk-sharing party equal to the risk retained, but not share the interest earned on a direct loan portion of a transaction; and (D) ensure that any administrative burdens for third parties are calculated to promote participation by third parties in the risk-sharing programs of the Bank. (2) The policies of the Bank to encourage risk-sharing shall give additional authority to a third party that retains risk of loss of greater than 50 percent of a transaction. (3) The Bank may guarantee a capital markets purchase of not more than 50 percent of an export portfolio by a captive finance company or affiliate to encourage expansion of equipment exports from the United States. . 209. Reauthorization of information technology updating Section 3(j) of the Export-Import Act of 1945 ( 12 U.S.C. 635a(j) ) is amended— (1) in the subsection heading, by striking bank surplus and inserting administrative funds ; (2) in paragraph (1), by striking Subject to paragraphs (3) and (4), the Bank may use an amount equal to 1.25 percent of the surplus of the Bank during fiscal years 2012, 2013, and 2014 to and inserting Subject to paragraphs (2) and (3), the Bank may use amounts, including fees, made available to the Bank for administrative expense for systems infrastructure, to ; (3) by striking paragraph (2) and redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively; and (4) in paragraph (2) (as so redesignated), by striking 2012, 2013, and 2014 and inserting 2015 through 2019 . III Job Growth 301. Extension of authority Section 7 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635f ) is amended by striking 2014 and inserting 2019 . 302. Dual use exports Section 1(c) of Public Law 103–428 ( 12 U.S.C. 635 note) is amended by striking 2014 and inserting 2019 . 303. Small business and medium-sized enterprises reports (a) In general The Export-Import Bank Act of 1945 ( 12 U.S.C. 635 et seq. ) is amended by inserting after section 8A the following: 8B. Small business concerns and medium-sized enterprises reports (a) Study Not later than 180 days after the date of the enactment of this section, and annually thereafter, the Bank shall— (1) carry out a study on the programs, products, and policies of the Bank that support exports from small business concerns and medium-sized enterprises in the United States, including the programs, products, and polices with respect to the implementation of the export credit insurance program, delegated lending authority, and direct loans of the Bank; and (2) determine the extent to which the policies adequately meet the needs of small business concerns and medium-sized enterprises in obtaining Bank financing to support the maintenance or creation of jobs in the United States through exports, consistent with the requirement that the Bank obtain a reasonable assurance of repayment. (b) Report On the completion of each study required under subsection (a), the Bank shall issue a report to the Congress containing— (1) all findings and determinations made by the Bank in carrying out the study; (2) an analysis of the extent to which small business concerns and medium-sized enterprises supply exporters with goods and services, the content of which is included in exports supported by a Bank program; and (3) recommendations to enhance the support the Bank may provide small business concerns and medium-sized enterprises. (c) Small business concern defined In this section, the term small business concern has the meaning given the term under section 3(a) of the Small Business Act. . (b) Report on Bank support for small- and medium-Sized companies through supply chains Section 8 of such Act ( 12 U.S.C. 635g ), as amended by sections 103, 104, and 109 of this Act, is amended by adding at the end the following: (n) Bank support for small- and medium-Sized companies through supply chains The Bank shall include in its annual report to the Congress under subsection (a) an analysis of how, and to what extent, the Bank provides indirect support to small- and medium-sized companies through the supply chains of medium-sized and large companies to which the Bank has provided support. . 304. Medium-sized enterprises Section 2(b)(1)(F) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635(b)(1)(F) ) is amended to read as follows: (F) Fair consideration for medium-Sized enterprises In addition to the programs of the Bank to encourage the participation of small businesses in international commerce, the policies of the Bank shall give fair consideration to making loans and providing guarantees for the export of goods and services by medium-sized enterprises. . 305. Extension of suspension of supplemental guidelines for high carbon intensity projects Notwithstanding section 7081 of division K of the Consolidated Appropriations Act, 2014, paragraph (4) of such section shall apply through September 30, 2019, with respect to the Supplemental Guidelines for High Carbon Intensity Projects, approved by the Export-Import Bank of the United States on December 12, 2013. 306. Updated definition of loan terms Section 2(a)(2)(A) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635(a)(2)(A) ) is amended— (1) in clause (i), by striking and at the end; and (2) by adding at the end the following: (iii) with principal amounts of not more than $25,000,000; and . 307. Updated loan amounts Section 2(d)(2) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635(d)(2) ) is amended by striking $10,000,000 and inserting $25,000,000 . 308. Updated environmental effects consideration Section 11(a)(1)(A) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635i–5(a)(1)(A) ) is amended by striking $10,000,000 and inserting $25,000,000 . 309. Updated export amounts Section 3(g)(3) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635a(g)(3) ) is amended by striking $10,000,000 and inserting $25,000,000 . 310. Inflation adjustment Section 12 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635i–6 ) is amended to read as follows: 12. Inflation adjustment Beginning on the date on which the Bureau of Labor Statistics of the Department of Labor first publishes the Consumer Price Index after the date that is 1 year after the date of the enactment of this section, and annually thereafter, the Bank shall adjust all dollar amounts specified in this Act by the percentage change in the Consumer Price Index published on that date from the Consumer Price Index published the previous year. .

tv_txt: I 114th CONGRESS 1st Session H. R. 597 IN THE HOUSE OF REPRESENTATIVES AN ACT To reauthorize the Export-Import Bank of the United States, and for other purposes.

1. Short title; table of contents (a) Short title This Act may be cited as the Export-Import Bank Reform and Reauthorization Act of 2015 . (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. TITLE I—Taxpayer protection provisions and increased accountability Sec. 101. Reduction in authorized amount of outstanding loans, guarantees, and insurance. Sec. 102. Increase in loss reserves. Sec. 103. Review of fraud controls. Sec. 104. Office of Ethics. Sec. 105. Chief Risk Officer. Sec. 106. Risk Management Committee. Sec. 107. Independent audit of bank portfolio. Sec. 108. Pilot program for reinsurance. TITLE II—Promotion of small business exports Sec. 201. Increase in small business lending requirements. Sec. 202. Report on programs for small and medium-sized businesses. TITLE III—Modernization of operations Sec. 301. Electronic payments and documents. Sec. 302. Reauthorization of information technology updating. TITLE IV—General provisions Sec. 401. Extension of authority. Sec. 402. Certain updated loan terms and amounts. TITLE V—Other matters Sec. 501. Prohibition on discrimination based on industry. Sec. 502. Negotiations to end export credit financing. Sec. 503. Study of financing for information and communications technology systems. I Taxpayer protection provisions and increased accountability 101. Reduction in authorized amount of outstanding loans, guarantees, and insurance Section 6(a) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635e(a) ) is amended— (1) by redesignating paragraph (3) as paragraph (4); and (2) by striking paragraph (2) and inserting the following: (2) Applicable amount defined In this subsection, the term applicable amount , for each of fiscal years 2015 through 2019, means $135,000,000,000. (3) Freezing of lending cap if default rate is 2 percent or more If the rate calculated under section 8(g)(1) is 2 percent or more for a quarter, the Bank may not exceed the amount of loans, guarantees, and insurance outstanding on the last day of that quarter until the rate calculated under section 8(g)(1) is less than 2 percent. . 102. Increase in loss reserves (a) In general Section 6 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635e ) is amended— (1) by redesignating subsection (b) as subsection (c); and (2) by inserting after subsection (a) the following: (b) Reserve requirement The Bank shall build to and hold in reserve, to protect against future losses, an amount that is not less than 5 percent of the aggregate amount of disbursed and outstanding loans, guarantees, and insurance of the Bank. . (b) Effective date The amendment made by subsection (a) shall take effect on the date that is 1 year after the date of the enactment of this Act. 103. Review of fraud controls Section 17(b) of the Export-Import Bank Reauthorization Act of 2012 ( 12 U.S.C. 635a–6(b) ) is amended to read as follows: (b) Review of fraud controls Not later than 4 years after the date of the enactment of the Export-Import Bank Reform and Reauthorization Act of 2015 , and every 4 years thereafter, the Comptroller General of the United States shall— (1) review the adequacy of the design and effectiveness of the controls used by the Export-Import Bank of the United States to prevent, detect, and investigate fraudulent applications for loans and guarantees and the compliance by the Bank with the controls, including by auditing a sample of Bank transactions; and (2) submit a written report regarding the findings of the review and providing such recommendations with respect to the controls described in paragraph (1) as the Comptroller General deems appropriate to— (A) the Committee on Banking, Housing, and Urban Affairs and the Committee on Appropriations of the Senate; and (B) the Committee on Financial Services and the Committee on Appropriations of the House of Representatives. . 104. Office of Ethics Section 3 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635a ) is amended by adding at the end the following: (k) Office of Ethics (1) Establishment There is established an Office of Ethics within the Bank, which shall oversee all ethics issues within the Bank. (2) Head of office (A) In general The head of the Office of Ethics shall be the Chief Ethics Officer, who shall report to the Board of Directors. (B) Appointment Not later than 180 days after the date of the enactment of the Export-Import Bank Reform and Reauthorization Act of 2015 , the Chief Ethics Officer shall be— (i) appointed by the President of the Bank from among persons— (I) with a background in law who have experience in the fields of law and ethics; and (II) who are not serving in a position requiring appointment by the President of the United States before being appointed to be Chief Ethics Officer; and (ii) approved by the Board. (C) Designated agency ethics official The Chief Ethics Officer shall serve as the designated agency ethics official for the Bank pursuant to the Ethics in Government Act of 1978 (5 U.S.C. App. 101 et seq.). (3) Duties The Office of Ethics has jurisdiction over all employees of, and ethics matters relating to, the Bank. With respect to employees of the Bank, the Office of Ethics shall— (A) recommend administrative actions to establish or enforce standards of official conduct; (B) refer to the Office of the Inspector General of the Bank alleged violations of— (i) the standards of ethical conduct applicable to employees of the Bank under parts 2635 and 6201 of title 5, Code of Federal Regulations; (ii) the standards of ethical conduct established by the Chief Ethics Officer; and (iii) any other laws, rules, or regulations governing the performance of official duties or the discharge of official responsibilities that are applicable to employees of the Bank; (C) report to appropriate Federal or State authorities substantial evidence of a violation of any law applicable to the performance of official duties that may have been disclosed to the Office of Ethics; and (D) render advisory opinions regarding the propriety of any current or proposed conduct of an employee or contractor of the Bank, and issue general guidance on such matters as necessary. . 105. Chief Risk Officer Section 3 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635a ), as amended by section 104, is further amended by adding at the end the following: (l) Chief Risk Officer (1) In general There shall be a Chief Risk Officer of the Bank, who shall— (A) oversee all issues relating to risk within the Bank; and (B) report to the President of the Bank. (2) Appointment Not later than 180 days after the date of the enactment of the Export-Import Bank Reform and Reauthorization Act of 2015 , the Chief Risk Officer shall be— (A) appointed by the President of the Bank from among persons— (i) with a demonstrated ability in the general management of, and knowledge of and extensive practical experience in, financial risk evaluation practices in large governmental or business entities; and (ii) who are not serving in a position requiring appointment by the President of the United States before being appointed to be Chief Risk Officer; and (B) approved by the Board. (3) Duties The duties of the Chief Risk Officer are— (A) to be responsible for all matters related to managing and mitigating all risk to which the Bank is exposed, including the programs and operations of the Bank; (B) to establish policies and processes for risk oversight, the monitoring of management compliance with risk limits, and the management of risk exposures and risk controls across the Bank; (C) to be responsible for the planning and execution of all Bank risk management activities, including policies, reporting, and systems to achieve strategic risk objectives; (D) to develop an integrated risk management program that includes identifying, prioritizing, measuring, monitoring, and managing internal control and operating risks and other identified risks; (E) to ensure that the process for risk assessment and underwriting for individual transactions considers how each such transaction considers the effect of the transaction on the concentration of exposure in the overall portfolio of the Bank, taking into account fees, collateralization, and historic default rates; and (F) to review the adequacy of the use by the Bank of qualitative metrics to assess the risk of default under various scenarios. . 106. Risk Management Committee (a) In general Section 3 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635a ), as amended by sections 104 and 105, is further amended by adding at the end the following: (m) Risk management committee (1) Establishment There is established a management committee to be known as the Risk Management Committee . (2) Membership The membership of the Risk Management Committee shall be the members of the Board of Directors, with the President and First Vice President of the Bank serving as ex officio members. (3) Duties The duties of the Risk Management Committee shall be— (A) to oversee, in conjunction with the Office of the Chief Financial Officer of the Bank— (i) periodic stress testing on the entire Bank portfolio, reflecting different market, industry, and macroeconomic scenarios, and consistent with common practices of commercial and multilateral development banks; and (ii) the monitoring of industry, geographic, and obligor exposure levels; and (B) to review all required reports on the default rate of the Bank before submission to Congress under section 8(g). . (b) Termination of Audit Committee Not later than 180 days after the date of the enactment of this Act, the Board of Directors of the Export-Import Bank of the United States shall revise the bylaws of the Bank to terminate the Audit Committee established by section 7 of the bylaws. 107. Independent audit of bank portfolio (a) Audit The Inspector General of the Export-Import Bank of the United States shall conduct an audit or evaluation of the portfolio risk management procedures of the Bank, including a review of the implementation by the Bank of the duties assigned to the Chief Risk Officer under section 3(l) of the Export-Import Bank Act of 1945, as amended by section 105. (b) Report Not later than 1 year after the date of the enactment of this Act, and not less frequently than every 3 years thereafter, the Inspector General shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a written report containing all findings and determinations made in carrying out subsection (a). 108. Pilot program for reinsurance (a) In general Notwithstanding any provision of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635 et seq. ), the Export-Import Bank of the United States (in this section referred to as the Bank ) may establish a pilot program under which the Bank may enter into contracts and other arrangements to share risks associated with the provision of guarantees, insurance, or credit, or the participation in the extension of credit, by the Bank under that Act. (b) Limitations on Amount of Risk-Sharing (1) Per contract or other arrangement The aggregate amount of liability the Bank may transfer through risk-sharing pursuant to a contract or other arrangement entered into under subsection (a) may not exceed $1,000,000,000. (2) Per year The aggregate amount of liability the Bank may transfer through risk-sharing during a fiscal year pursuant to contracts or other arrangements entered into under subsection (a) during that fiscal year may not exceed $10,000,000,000. (c) Annual reports Not later than 1 year after the date of the enactment of this Act, and annually thereafter through 2019, the Bank shall submit to Congress a written report that contains a detailed analysis of the use of the pilot program carried out under subsection (a) during the year preceding the submission of the report. (d) Rule of construction Nothing in this section shall be construed to affect, impede, or revoke any authority of the Bank. (e) Termination The pilot program carried out under subsection (a) shall terminate on September 30, 2019. II Promotion of small business exports 201. Increase in small business lending requirements (a) In general Section 2(b)(1)(E)(v) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635(b)(1)(E)(v) ) is amended by striking 20 percent and inserting 25 percent . (b) Effective date The amendment made by subsection (a) shall apply with respect to fiscal year 2016 and each fiscal year thereafter. 202. Report on programs for small and medium-sized businesses (a) In general Section 8 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635g ) is amended by adding at the end the following: (k) Report on Programs for Small and Medium-Sized Businesses The Bank shall include in its annual report to Congress under subsection (a) a report on the programs of the Bank for United States businesses with less than $250,000,000 in annual sales. . (b) Effective date The amendment made by subsection (a) shall apply with respect to the report of the Export-Import Bank of the United States submitted to Congress under section 8 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635g ) for the first year that begins after the date of the enactment of this Act. III Modernization of operations 301. Electronic payments and documents Section 2(b)(1) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635(b)(1) ) is amended by adding at the end the following: (M) Not later than 2 years after the date of the enactment of the Export-Import Bank Reform and Reauthorization Act of 2015 , the Bank shall implement policies— (i) to accept electronic documents with respect to transactions whenever possible, including copies of bills of lading, certifications, and compliance documents, in such manner so as not to undermine any potential civil or criminal enforcement related to the transactions; and (ii) to accept electronic payments in all of its programs. . 302. Reauthorization of information technology updating Section 3(j) of the Export-Import Act of 1945 ( 12 U.S.C. 635a(j) ) is amended— (1) in paragraph (1), in the matter preceding subparagraph (A), by striking 2012, 2013, and 2014 and inserting 2015 through 2019 ; (2) in paragraph (2)(B), by striking (I) the funds and inserting (i) the funds ; and (3) in paragraph (3), by striking 2012, 2013, and 2014 and inserting 2015 through 2019 . IV General provisions 401. Extension of authority (a) In general Section 7 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635f ) is amended by striking 2014 and inserting 2019 . (b) Dual-Use Exports Section 1(c) of Public Law 103–428 ( 12 U.S.C. 635 note) is amended by striking September 30, 2014 and inserting the date on which the authority of the Export-Import Bank of the United States expires under section 7 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635f ) . (c) Sub-Saharan Africa Advisory Committee Section 2(b)(9)(B)(iii) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635(b)(9)(B)(iii) ) is amended by striking September 30, 2014 and inserting the date on which the authority of the Bank expires under section 7 . (d) Effective date The amendments made by this section shall take effect on the earlier of the date of the enactment of this Act or June 30, 2015. 402. Certain updated loan terms and amounts (a) Loan Terms for Medium-Term Financing Section 2(a)(2)(A) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635(a)(2)(A) ) is amended— (1) in clause (i), by striking ; and and inserting a semicolon; and (2) by adding at the end the following: (iii) with principal amounts of not more than $25,000,000; and . (b) Competitive opportunities relating to insurance Section 2(d)(2) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635(d)(2) ) is amended by striking $10,000,000 and inserting $25,000,000 . (c) Export amounts for small business loans Section 3(g)(3) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635a(g)(3) ) is amended by striking $10,000,000 and inserting $25,000,000 . (d) Consideration of environmental effects Section 11(a)(1)(A) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635i–5(a)(1)(A) ) is amended by striking $10,000,000 or more and inserting the following: $25,000,000 (or, if less than $25,000,000, the threshold established pursuant to international agreements, including the Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence, as adopted by the Organisation for Economic Co-operation and Development Council on June 28, 2012, and the risk-management framework adopted by financial institutions for determining, assessing, and managing environmental and social risk in projects (commonly referred to as the Equator Principles )) or more . (e) Effective date The amendments made by this section shall apply with respect to fiscal year 2016 and each fiscal year thereafter. V Other matters 501. Prohibition on discrimination based on industry Section 2 of the Export-Import Bank Act of 1945 ( 6 U.S.C. 635 et seq. ) is amended by adding at the end the following: (k) Prohibition on discrimination based on industry (1) In general Except as provided in this Act, the Bank may not— (A) deny an application for financing based solely on the industry, sector, or business that the application concerns; or (B) promulgate or implement policies that discriminate against an application based solely on the industry, sector, or business that the application concerns. (2) Applicability The prohibitions under paragraph (1) apply only to applications for financing by the Bank for projects concerning the exploration, development, production, or export of energy sources and the generation or transmission of electrical power, or combined heat and power, regardless of the energy source involved. . 502. Negotiations to end export credit financing (a) In general Section 11 of the Export-Import Bank Reauthorization Act of 2012 ( 12 U.S.C. 635a–5 ) is amended— (1) in subsection (a)— (A) in the matter preceding paragraph (1), by striking Secretary of the Treasury (in this section referred to as the Secretary ) and inserting President ; and (B) in paragraph (1)— (i) by striking (OECD) and inserting (in this section referred to as the OECD ) ; and (ii) by striking ultimate goal of eliminating and inserting possible goal of eliminating, before the date that is 10 years after the date of the enactment of the Export-Import Bank Reform and Reauthorization Act of 2015 , ; (2) in subsection (b), by striking Secretary each place it appears and inserting President ; and (3) by adding at the end the following: (c) Report on strategy Not later than 180 days after the date of the enactment of the Export-Import Bank Reform and Reauthorization Act of 2015 , the President shall submit to Congress a proposal, and a strategy for achieving the proposal, that the United States Government will pursue with other major exporting countries, including OECD members and non-OECD members, to eliminate over a period of not more than 10 years subsidized export-financing programs, tied aid, export credits, and all other forms of government-supported export subsidies. (d) Negotiations with non-OECD members The President shall initiate and pursue negotiations with countries that are not OECD members to bring those countries into a multilateral agreement establishing rules and limitations on officially supported export credits. (e) Annual reports on progress of negotiations Not later than 180 days after the date of the enactment of the Export-Import Bank Reform and Reauthorization Act of 2015 , and annually thereafter through calendar year 2019, the President shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on the progress of any negotiations described in subsection (d). . (b) Effective date The amendments made by paragraphs (1) and (2) of subsection (a) shall apply with respect to reports required to be submitted under section 11(b) of the Export-Import Bank Reauthorization Act of 2012 ( 12 U.S.C. 635a–5(b) ) after the date of the enactment of this Act. 503. Study of financing for information and communications technology systems (a) Analysis of information and communications technology industry use of bank products The Export-Import Bank of the United States (in this section referred to as the Bank ) shall conduct a study of the extent to which the products offered by the Bank are available and used by companies that export information and communications technology services and related goods. (b) Elements In conducting the study required by subsection (a), the Bank shall examine the following: (1) The number of jobs in the United States that are supported by the export of information and communications technology services and related goods, and the degree to which access to financing will increase exports of such services and related goods. (2) The reduction in the financing by the Bank of exports of information and communications technology services from 2003 through 2014. (3) The activities of foreign export credit agencies to facilitate the export of information and communications technology services and related goods. (4) Specific proposals for how the Bank could provide additional financing for the exportation of information and communications technology services and related goods through risk-sharing with other export credit agencies and other third parties. (5) Proposals for new products the Bank could offer to provide financing for exports of information and communications technology services and related goods, including— (A) the extent to which the Bank is authorized to offer new products; (B) the extent to which the Bank would need additional authority to offer new products to meet the needs of the information and communications technology industry; (C) specific proposals for changes in law that would enable the Bank to provide increased financing for exports of information and communications technology services and related goods in compliance with the credit and risk standards of the Bank; (D) specific proposals that would enable the Bank to provide increased outreach to the information and communications technology industry about the products the Bank offers; and (E) specific proposals for changes in law that would enable the Bank to provide the financing to build information and communications technology infrastructure, in compliance with the credit and risk standards of the Bank, to allow for market access opportunities for United States information and communications technology companies to provide services on the infrastructure being financed by the Bank. (c) Report Not later than 180 days after the date of the enactment of this Act, the Bank shall submit to Congress a report that contains the results of the study required by subsection (a).

Passed the House of Representatives October 27, 2015. Karen L. Haas, Clerk.

tv_txt: II Calendar No. 282 114th CONGRESS 1st Session H. R. 597 IN THE SENATE OF THE UNITED STATES October 28, 2015 Received; read the first time October 29, 2015 Read the second time and placed on the calendar AN ACT To reauthorize the Export-Import Bank of the United States, and for other purposes.

1. Short title; table of contents (a) Short title This Act may be cited as the Export-Import Bank Reform and Reauthorization Act of 2015 . (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. TITLE I—Taxpayer protection provisions and increased accountability Sec. 101. Reduction in authorized amount of outstanding loans, guarantees, and insurance. Sec. 102. Increase in loss reserves. Sec. 103. Review of fraud controls. Sec. 104. Office of Ethics. Sec. 105. Chief Risk Officer. Sec. 106. Risk Management Committee. Sec. 107. Independent audit of bank portfolio. Sec. 108. Pilot program for reinsurance. TITLE II—Promotion of small business exports Sec. 201. Increase in small business lending requirements. Sec. 202. Report on programs for small and medium-sized businesses. TITLE III—Modernization of operations Sec. 301. Electronic payments and documents. Sec. 302. Reauthorization of information technology updating. TITLE IV—General provisions Sec. 401. Extension of authority. Sec. 402. Certain updated loan terms and amounts. TITLE V—Other matters Sec. 501. Prohibition on discrimination based on industry. Sec. 502. Negotiations to end export credit financing. Sec. 503. Study of financing for information and communications technology systems. I Taxpayer protection provisions and increased accountability 101. Reduction in authorized amount of outstanding loans, guarantees, and insurance Section 6(a) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635e(a) ) is amended— (1) by redesignating paragraph (3) as paragraph (4); and (2) by striking paragraph (2) and inserting the following: (2) Applicable amount defined In this subsection, the term applicable amount , for each of fiscal years 2015 through 2019, means $135,000,000,000. (3) Freezing of lending cap if default rate is 2 percent or more If the rate calculated under section 8(g)(1) is 2 percent or more for a quarter, the Bank may not exceed the amount of loans, guarantees, and insurance outstanding on the last day of that quarter until the rate calculated under section 8(g)(1) is less than 2 percent. . 102. Increase in loss reserves (a) In general Section 6 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635e ) is amended— (1) by redesignating subsection (b) as subsection (c); and (2) by inserting after subsection (a) the following: (b) Reserve requirement The Bank shall build to and hold in reserve, to protect against future losses, an amount that is not less than 5 percent of the aggregate amount of disbursed and outstanding loans, guarantees, and insurance of the Bank. . (b) Effective date The amendment made by subsection (a) shall take effect on the date that is 1 year after the date of the enactment of this Act. 103. Review of fraud controls Section 17(b) of the Export-Import Bank Reauthorization Act of 2012 ( 12 U.S.C. 635a–6(b) ) is amended to read as follows: (b) Review of fraud controls Not later than 4 years after the date of the enactment of the Export-Import Bank Reform and Reauthorization Act of 2015 , and every 4 years thereafter, the Comptroller General of the United States shall— (1) review the adequacy of the design and effectiveness of the controls used by the Export-Import Bank of the United States to prevent, detect, and investigate fraudulent applications for loans and guarantees and the compliance by the Bank with the controls, including by auditing a sample of Bank transactions; and (2) submit a written report regarding the findings of the review and providing such recommendations with respect to the controls described in paragraph (1) as the Comptroller General deems appropriate to— (A) the Committee on Banking, Housing, and Urban Affairs and the Committee on Appropriations of the Senate; and (B) the Committee on Financial Services and the Committee on Appropriations of the House of Representatives. . 104. Office of Ethics Section 3 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635a ) is amended by adding at the end the following: (k) Office of Ethics (1) Establishment There is established an Office of Ethics within the Bank, which shall oversee all ethics issues within the Bank. (2) Head of office (A) In general The head of the Office of Ethics shall be the Chief Ethics Officer, who shall report to the Board of Directors. (B) Appointment Not later than 180 days after the date of the enactment of the Export-Import Bank Reform and Reauthorization Act of 2015 , the Chief Ethics Officer shall be— (i) appointed by the President of the Bank from among persons— (I) with a background in law who have experience in the fields of law and ethics; and (II) who are not serving in a position requiring appointment by the President of the United States before being appointed to be Chief Ethics Officer; and (ii) approved by the Board. (C) Designated agency ethics official The Chief Ethics Officer shall serve as the designated agency ethics official for the Bank pursuant to the Ethics in Government Act of 1978 (5 U.S.C. App. 101 et seq.). (3) Duties The Office of Ethics has jurisdiction over all employees of, and ethics matters relating to, the Bank. With respect to employees of the Bank, the Office of Ethics shall— (A) recommend administrative actions to establish or enforce standards of official conduct; (B) refer to the Office of the Inspector General of the Bank alleged violations of— (i) the standards of ethical conduct applicable to employees of the Bank under parts 2635 and 6201 of title 5, Code of Federal Regulations; (ii) the standards of ethical conduct established by the Chief Ethics Officer; and (iii) any other laws, rules, or regulations governing the performance of official duties or the discharge of official responsibilities that are applicable to employees of the Bank; (C) report to appropriate Federal or State authorities substantial evidence of a violation of any law applicable to the performance of official duties that may have been disclosed to the Office of Ethics; and (D) render advisory opinions regarding the propriety of any current or proposed conduct of an employee or contractor of the Bank, and issue general guidance on such matters as necessary. . 105. Chief Risk Officer Section 3 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635a ), as amended by section 104, is further amended by adding at the end the following: (l) Chief Risk Officer (1) In general There shall be a Chief Risk Officer of the Bank, who shall— (A) oversee all issues relating to risk within the Bank; and (B) report to the President of the Bank. (2) Appointment Not later than 180 days after the date of the enactment of the Export-Import Bank Reform and Reauthorization Act of 2015 , the Chief Risk Officer shall be— (A) appointed by the President of the Bank from among persons— (i) with a demonstrated ability in the general management of, and knowledge of and extensive practical experience in, financial risk evaluation practices in large governmental or business entities; and (ii) who are not serving in a position requiring appointment by the President of the United States before being appointed to be Chief Risk Officer; and (B) approved by the Board. (3) Duties The duties of the Chief Risk Officer are— (A) to be responsible for all matters related to managing and mitigating all risk to which the Bank is exposed, including the programs and operations of the Bank; (B) to establish policies and processes for risk oversight, the monitoring of management compliance with risk limits, and the management of risk exposures and risk controls across the Bank; (C) to be responsible for the planning and execution of all Bank risk management activities, including policies, reporting, and systems to achieve strategic risk objectives; (D) to develop an integrated risk management program that includes identifying, prioritizing, measuring, monitoring, and managing internal control and operating risks and other identified risks; (E) to ensure that the process for risk assessment and underwriting for individual transactions considers how each such transaction considers the effect of the transaction on the concentration of exposure in the overall portfolio of the Bank, taking into account fees, collateralization, and historic default rates; and (F) to review the adequacy of the use by the Bank of qualitative metrics to assess the risk of default under various scenarios. . 106. Risk Management Committee (a) In general Section 3 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635a ), as amended by sections 104 and 105, is further amended by adding at the end the following: (m) Risk management committee (1) Establishment There is established a management committee to be known as the Risk Management Committee . (2) Membership The membership of the Risk Management Committee shall be the members of the Board of Directors, with the President and First Vice President of the Bank serving as ex officio members. (3) Duties The duties of the Risk Management Committee shall be— (A) to oversee, in conjunction with the Office of the Chief Financial Officer of the Bank— (i) periodic stress testing on the entire Bank portfolio, reflecting different market, industry, and macroeconomic scenarios, and consistent with common practices of commercial and multilateral development banks; and (ii) the monitoring of industry, geographic, and obligor exposure levels; and (B) to review all required reports on the default rate of the Bank before submission to Congress under section 8(g). . (b) Termination of Audit Committee Not later than 180 days after the date of the enactment of this Act, the Board of Directors of the Export-Import Bank of the United States shall revise the bylaws of the Bank to terminate the Audit Committee established by section 7 of the bylaws. 107. Independent audit of bank portfolio (a) Audit The Inspector General of the Export-Import Bank of the United States shall conduct an audit or evaluation of the portfolio risk management procedures of the Bank, including a review of the implementation by the Bank of the duties assigned to the Chief Risk Officer under section 3(l) of the Export-Import Bank Act of 1945, as amended by section 105. (b) Report Not later than 1 year after the date of the enactment of this Act, and not less frequently than every 3 years thereafter, the Inspector General shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a written report containing all findings and determinations made in carrying out subsection (a). 108. Pilot program for reinsurance (a) In general Notwithstanding any provision of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635 et seq. ), the Export-Import Bank of the United States (in this section referred to as the Bank ) may establish a pilot program under which the Bank may enter into contracts and other arrangements to share risks associated with the provision of guarantees, insurance, or credit, or the participation in the extension of credit, by the Bank under that Act. (b) Limitations on Amount of Risk-Sharing (1) Per contract or other arrangement The aggregate amount of liability the Bank may transfer through risk-sharing pursuant to a contract or other arrangement entered into under subsection (a) may not exceed $1,000,000,000. (2) Per year The aggregate amount of liability the Bank may transfer through risk-sharing during a fiscal year pursuant to contracts or other arrangements entered into under subsection (a) during that fiscal year may not exceed $10,000,000,000. (c) Annual reports Not later than 1 year after the date of the enactment of this Act, and annually thereafter through 2019, the Bank shall submit to Congress a written report that contains a detailed analysis of the use of the pilot program carried out under subsection (a) during the year preceding the submission of the report. (d) Rule of construction Nothing in this section shall be construed to affect, impede, or revoke any authority of the Bank. (e) Termination The pilot program carried out under subsection (a) shall terminate on September 30, 2019. II Promotion of small business exports 201. Increase in small business lending requirements (a) In general Section 2(b)(1)(E)(v) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635(b)(1)(E)(v) ) is amended by striking 20 percent and inserting 25 percent . (b) Effective date The amendment made by subsection (a) shall apply with respect to fiscal year 2016 and each fiscal year thereafter. 202. Report on programs for small and medium-sized businesses (a) In general Section 8 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635g ) is amended by adding at the end the following: (k) Report on Programs for Small and Medium-Sized Businesses The Bank shall include in its annual report to Congress under subsection (a) a report on the programs of the Bank for United States businesses with less than $250,000,000 in annual sales. . (b) Effective date The amendment made by subsection (a) shall apply with respect to the report of the Export-Import Bank of the United States submitted to Congress under section 8 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635g ) for the first year that begins after the date of the enactment of this Act. III Modernization of operations 301. Electronic payments and documents Section 2(b)(1) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635(b)(1) ) is amended by adding at the end the following: (M) Not later than 2 years after the date of the enactment of the Export-Import Bank Reform and Reauthorization Act of 2015 , the Bank shall implement policies— (i) to accept electronic documents with respect to transactions whenever possible, including copies of bills of lading, certifications, and compliance documents, in such manner so as not to undermine any potential civil or criminal enforcement related to the transactions; and (ii) to accept electronic payments in all of its programs. . 302. Reauthorization of information technology updating Section 3(j) of the Export-Import Act of 1945 ( 12 U.S.C. 635a(j) ) is amended— (1) in paragraph (1), in the matter preceding subparagraph (A), by striking 2012, 2013, and 2014 and inserting 2015 through 2019 ; (2) in paragraph (2)(B), by striking (I) the funds and inserting (i) the funds ; and (3) in paragraph (3), by striking 2012, 2013, and 2014 and inserting 2015 through 2019 . IV General provisions 401. Extension of authority (a) In general Section 7 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635f ) is amended by striking 2014 and inserting 2019 . (b) Dual-Use Exports Section 1(c) of Public Law 103–428 ( 12 U.S.C. 635 note) is amended by striking September 30, 2014 and inserting the date on which the authority of the Export-Import Bank of the United States expires under section 7 of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635f ) . (c) Sub-Saharan Africa Advisory Committee Section 2(b)(9)(B)(iii) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635(b)(9)(B)(iii) ) is amended by striking September 30, 2014 and inserting the date on which the authority of the Bank expires under section 7 . (d) Effective date The amendments made by this section shall take effect on the earlier of the date of the enactment of this Act or June 30, 2015. 402. Certain updated loan terms and amounts (a) Loan Terms for Medium-Term Financing Section 2(a)(2)(A) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635(a)(2)(A) ) is amended— (1) in clause (i), by striking ; and and inserting a semicolon; and (2) by adding at the end the following: (iii) with principal amounts of not more than $25,000,000; and . (b) Competitive opportunities relating to insurance Section 2(d)(2) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635(d)(2) ) is amended by striking $10,000,000 and inserting $25,000,000 . (c) Export amounts for small business loans Section 3(g)(3) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635a(g)(3) ) is amended by striking $10,000,000 and inserting $25,000,000 . (d) Consideration of environmental effects Section 11(a)(1)(A) of the Export-Import Bank Act of 1945 ( 12 U.S.C. 635i–5(a)(1)(A) ) is amended by striking $10,000,000 or more and inserting the following: $25,000,000 (or, if less than $25,000,000, the threshold established pursuant to international agreements, including the Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence, as adopted by the Organisation for Economic Co-operation and Development Council on June 28, 2012, and the risk-management framework adopted by financial institutions for determining, assessing, and managing environmental and social risk in projects (commonly referred to as the Equator Principles )) or more . (e) Effective date The amendments made by this section shall apply with respect to fiscal year 2016 and each fiscal year thereafter. V Other matters 501. Prohibition on discrimination based on industry Section 2 of the Export-Import Bank Act of 1945 ( 6 U.S.C. 635 et seq. ) is amended by adding at the end the following: (k) Prohibition on discrimination based on industry (1) In general Except as provided in this Act, the Bank may not— (A) deny an application for financing based solely on the industry, sector, or business that the application concerns; or (B) promulgate or implement policies that discriminate against an application based solely on the industry, sector, or business that the application concerns. (2) Applicability The prohibitions under paragraph (1) apply only to applications for financing by the Bank for projects concerning the exploration, development, production, or export of energy sources and the generation or transmission of electrical power, or combined heat and power, regardless of the energy source involved. . 502. Negotiations to end export credit financing (a) In general Section 11 of the Export-Import Bank Reauthorization Act of 2012 ( 12 U.S.C. 635a–5 ) is amended— (1) in subsection (a)— (A) in the matter preceding paragraph (1), by striking Secretary of the Treasury (in this section referred to as the Secretary ) and inserting President ; and (B) in paragraph (1)— (i) by striking (OECD) and inserting (in this section referred to as the OECD ) ; and (ii) by striking ultimate goal of eliminating and inserting possible goal of eliminating, before the date that is 10 years after the date of the enactment of the Export-Import Bank Reform and Reauthorization Act of 2015 , ; (2) in subsection (b), by striking Secretary each place it appears and inserting President ; and (3) by adding at the end the following: (c) Report on strategy Not later than 180 days after the date of the enactment of the Export-Import Bank Reform and Reauthorization Act of 2015 , the President shall submit to Congress a proposal, and a strategy for achieving the proposal, that the United States Government will pursue with other major exporting countries, including OECD members and non-OECD members, to eliminate over a period of not more than 10 years subsidized export-financing programs, tied aid, export credits, and all other forms of government-supported export subsidies. (d) Negotiations with non-OECD members The President shall initiate and pursue negotiations with countries that are not OECD members to bring those countries into a multilateral agreement establishing rules and limitations on officially supported export credits. (e) Annual reports on progress of negotiations Not later than 180 days after the date of the enactment of the Export-Import Bank Reform and Reauthorization Act of 2015 , and annually thereafter through calendar year 2019, the President shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on the progress of any negotiations described in subsection (d). . (b) Effective date The amendments made by paragraphs (1) and (2) of subsection (a) shall apply with respect to reports required to be submitted under section 11(b) of the Export-Import Bank Reauthorization Act of 2012 ( 12 U.S.C. 635a–5(b) ) after the date of the enactment of this Act. 503. Study of financing for information and communications technology systems (a) Analysis of information and communications technology industry use of bank products The Export-Import Bank of the United States (in this section referred to as the Bank ) shall conduct a study of the extent to which the products offered by the Bank are available and used by companies that export information and communications technology services and related goods. (b) Elements In conducting the study required by subsection (a), the Bank shall examine the following: (1) The number of jobs in the United States that are supported by the export of information and communications technology services and related goods, and the degree to which access to financing will increase exports of such services and related goods. (2) The reduction in the financing by the Bank of exports of information and communications technology services from 2003 through 2014. (3) The activities of foreign export credit agencies to facilitate the export of information and communications technology services and related goods. (4) Specific proposals for how the Bank could provide additional financing for the exportation of information and communications technology services and related goods through risk-sharing with other export credit agencies and other third parties. (5) Proposals for new products the Bank could offer to provide financing for exports of information and communications technology services and related goods, including— (A) the extent to which the Bank is authorized to offer new products; (B) the extent to which the Bank would need additional authority to offer new products to meet the needs of the information and communications technology industry; (C) specific proposals for changes in law that would enable the Bank to provide increased financing for exports of information and communications technology services and related goods in compliance with the credit and risk standards of the Bank; (D) specific proposals that would enable the Bank to provide increased outreach to the information and communications technology industry about the products the Bank offers; and (E) specific proposals for changes in law that would enable the Bank to provide the financing to build information and communications technology infrastructure, in compliance with the credit and risk standards of the Bank, to allow for market access opportunities for United States information and communications technology companies to provide services on the infrastructure being financed by the Bank. (c) Report Not later than 180 days after the date of the enactment of this Act, the Bank shall submit to Congress a report that contains the results of the study required by subsection (a).

Passed the House of Representatives October 27, 2015. Karen L. Haas, Clerk

October 29, 2015 Read the second time and placed on the calendar