Overseas Private Investment Corporation Amendments Act of 1985
PL 99-204 (S.947), enacted 12/23/1985

PUBLIC LAW 99-204—DEC. 23, 1985 
99 STAT. 1669 
Public Law 99-204 
99th Congress 
An Act 
To amend the Foreign Assistance Act of 1961 with respect to the activities of the 
Overseas Private Investment Corporation. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Overseas Private Investment 
Corporation Amendments Act of 1985". 
SEC. 2. REFERENCE TO THE ACT. 
Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to or 
repeal of a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the Foreign 
Assistance Act of 1961. 
SEC. 
3
. 
INCOME 
LEVELS 
IN 
LESS 
DEVELOPED 
COUNTRIES. 
Section 231 (22 U.S.C. 2191) is amended in paragraph (2) of the 
second undesignated paragraph— 
(1) by striking out "$680 or less in 1979 United States dollars" 
and inserting in lieu thereof "$896 or less in 1983 United States 
dollars"; and 
(2) bv striking out "$2,950 or more in 1979 United States 
dollars and inserting in lieu thereof "$3,887 or more in 1983 
United States dollars . 
SEC. 4. PROTECTION OF HEALTH, SAFETY, AND THE ENVIRONMENT. 
(a) PoucY DIRECTIVES.—Section 231 (22 U.S.C. 2191) is amended— 
(1) in the second undesignated paragraph— 
(A) in paragraph (1) by striking out "and" after the 
semicolon; 
(B) by striking out the period at the end of paragraph (2) 
and inserting in lieu thereof "; and"; and 
(C) by inserting after paragraph (2) the following: 
"(3) ensure that the project is consistent with the provisions of 
sections 118 and 119 of this Act relating to the environment and 
natural resources of, and biological diversity in, developing 
countries, and consistent with the intent of regulations issued 
pursuant to sections 118 and 119 of this Act."; 
(2) in subsection (1) by striking out "and" after the semicolon; 
(3) in subsection (m) by striking out the period at the end and 
inserting in lieu thereof "; and"; and 
(4) by adding at the end the following: 
"(n) to refuse to insure, reinsure, guarantee, or finance any 
investment in connection with a project which the Corporation 
determines will pose an unreeisonable or major environmental, 
health, or safety hazard, or will result in the significant deg-
radation of national parks or similar protected areas.". 
Dec. 23. 1985 
[S. 947] 
Overseas Private 
Investment 
Corporation 
Amendments 
Act of 1985. 
22 u s e 2151 
note. 
22 u s e 2151 
note. 
Regulations. 
22 u s e 2151p, 
2151q. 
99 STAT. 1670 
PUBLIC LAW 99-204—DEC. 23, 1985 
(b) NOTIFICATION OF COUNTRIES OF ENVIRONMENTAL RESTRICTIONS 
ON CERTAIN ACTIVITIES.—Section 237 (22 U.S.C. 2197) is amended by 
adding at the end thereof the following: 
"(mXl) Before finally providing insurance, reinsurance, guaran-
tees, or financing under this title for any environmentally sensitive 
investment in connection with a project in a country, the Corpora-
tion shall notify appropriate government officials of that country 
of— 
International 
"(A) all guidelines and other standards adopted by the Inter-
organizations. 
national Bank for Reconstruction and Development and any 
other international organization relating to the public health or 
safety or the environment which are applicable to the project; 
and 
"(B) to the maximum extent practicable, any restriction 
under any law of the United States relating to public health or 
safety or the environment that would apply to the project if the 
project were undertaken in the United States. 
The notification under the preceding sentence shall include a sum-
mary of the guidelines, standards, and restrictions referred to in 
subparagraphs (A) and (B), and may include any environmental 
impact statement, assessment, review, or study prepared with re-
Infra. 
spect to the investment pursuant to section 239(g). 
"(2) Before finally providing insurance, reinsurance, guarantees, 
or financing for any investment subject to paragraph (1), the Cor-
poration shall take into account any comments it receives on the 
project involved. 
"(3) On or before September 30,1986, the Corporation shall notify 
appropriate government officials of a country of the guidelines, 
standards, and legal restrictions described in paragraph (1) that 
apply to any project in that country— 
"(A) which the Corporation identifies as potentially posing 
major hazards to public health and safety or the environment; 
and 
"(B) for which the Corporation provided insurance, reinsur-
ance, guarantees, or financing under this title before the date of 
enactment of this subsection and which is in the Corporation's 
portfolio on that date.". 
(c) ENVIRONMENTAL IMPACT ASSESSMENTS.—Section 239(g) (22 
U.S.C. 2199(g)) is amended to read as follows: 
22 use 2i5ip. 
"(g) The requirements of section 118(c) of this Act relating to 
environmental impact statements and environmental assessments 
shall apply to any investment which the Corporation insures, re-
insures, guarantees, or finances under this title in connection with a 
project in a country.". 
SEC. 5. WORKERS RIGHTS; PUBLIC HEARINGS. 
(a) ESTABLISHMENT OF REQUIREMENTS.—Title IV of chapter 2 of 
part I is amended by inserting after section 231 (22 U.S.C. 2191) the 
following new section: 
22 u s e 2191a. 
"SEC. 231A. ADDITIONAL REQUIREMENTS. 
"(a) WORKER RIGHTS.— 
"(1) LIMITATION ON O P I C ACTIVITIES.—The Corporation may 
insure, reinsure, guarantee, or finance a project only if the 
country in which the project is to be undertaken is taking steps 
to adopt and implement laws that extend internationally recog-
nized worker rights, as defined in section 502(aX4) of the Trade 
PUBLIC LAW 99-204—DEC. 23, 1985 
99 STAT. 1671 
Act of 1974 (19 U.S.C. 2462(aX4)), to workers in that country 
98 Stat. 3019. 
(including any designated zone in that country). 
"(2) USE OF ANNUAL REPORTS ON WORKERS RIGHTS.—The 
Corporation shall, in making its determinations under para-
graph (1), use the reports submitted to the Congress pursuant to 
section 505(c) of the Trade Act of 1974 (19 U.S.C. 2465(c)). The 
98 Stat. 3023. 
restriction set forth in paragraph (1) shall not apply until the 
first such report is submitted to the Congress. 
"(3) WAIVER.—Paragraph (1) shall not prohibit the Corpora-
tion from providing any insurance, reinsurance, guaranty, or 
financing with respect to a country if the President determines 
that such activities by the Corporation would be in the national 
economic interests of the United States. Any such determina-
tion shall be reported in writing to the Congress, together with 
the reasons for the determination. 
"(b) PUBLIC HEARINGS.—The Board shall hold at least one public 
hearing each year in order to afford an opportunity for any person 
to present views as to whether the Corporation is carrying out its 
activities in accordance with section 231 and this section or whether 
Ante, p. 1669. 
any investment in a particular country should have been or should 
be extended insurance, reinsurance, guarantees, or financing under 
this title.". 
O
b
) EFFECTIVE DATE.—Subsection (a) of section 231A, as added by 
22 use 2i9ia 
suljsection (a) of this section, shall not apply to projects insured, ^°^^-
reinsured, guaranteed, or financed before the date of the enactment 
of this Act. 
SEC. 6. INSURANCE FOR LOSS DUE TO BUSINESS INTERRUPTION. 
(a) ISSUING AUTHORITY.—Section 234(a) (22 U.S.C. 2194(a)) is 
amended— 
(1) in paragraph (1)— 
(A) in subparagraph (B) by striking out "and" after the 
semicolon; 
(B) in subparagraph (C) by striking out the period and 
inserting in lieu thereof "; and"; and 
(C) by adding at the end the following: 
"(D) loss due to business interruption caused by any of the 
risks set forth in subparagraphs (A), (B), and (C)."; and 
(2) in paragraph (4)— 
(A) by striking out "civil strife insurance for the first 
time" and inserting in lieu thereof "insurance for the first 
time for loss due to business interruption"; 
(B) by striking out "definition of civil strife" and insert-
ing in lieu thereof "definition of 'civil strife' or 'business 
interruption'"; 
(C) by inserting immediately before the period at the end 
of the paragraph the following: "and, in the case of insur-
ance for loss due to business interruption, an explanation of 
the underwriting basis upon which the insurance is to be 
offered"; and 
(D) by adding at the end of the paragraph the following: 
"Any such report with respect to insurance for loss due to 
business interruption shall be considered in accordance 
with the procedures applicable to reprogramming notifica-
tions pursuant to section 634A of this Act.". 
22 use 2394-1. 
O
b
) COMPENSATION FOR Loss.—Section 237(f) (22 U.S.C. 2197(f)) is 
amended in the first sentence— 
99 STAT. 1672 
PUBLIC LAW 99-204—DEC. 23, 1985 
(1) by striking out "and (2)" and inserting in lieu thereof "(2)"; 
and 
(2) by inserting immediately before the period at the end of 
the sentence the following: ", and (3) compensation for loss due 
to business interruption may be computed on a basis to be 
determined by the Corporation which reflects amounts lost". 
SEC. 7. MAXIMUM CONTINGENT LIABILITY FOR INVESTMENT GUARAN-
TEES. 
Section 234(b) (22 U.S.C. 2194(b)) is amended in the last proviso by 
striking out "10" and inserting in lieu thereof "15". 
SEC. 8. POOLING AND RISK-SHARING AGREEMENTS. 
Section 234(f)(2) (22 U.S.C. 2194(fK2)) is amended by striking out 
"other national or". 
SEC. 9. FACULTATIVE REINSURANCE PROGRAM. 
(a) EsTABUSHMENT.—Title IV of chapter 2 of part I is amended by 
inserting after section 234 (22 U.S.C. 2194) the following new section: 
22 use 2194b. 
"SEC. 234A. FACULTATIVE REINSURANCE PROGRAM. 
Contracts. 
"(a) EsTABUSHMENT.—In Order ,to encourage greater availability of 
political risk insurance for eligible investors, the Corporation shall 
establish, not later than one year after the date of the enactment of 
the Overseas Private Investment Corporation Amendments Act of 
Ante, p. 1669. 
1985, a pilot program of facultative reinsurance. The program shall 
provide reinsurance to insurance companies, financial institutions, 
other persons, or groups thereof, with respect to insurance issued by 
such companies, institutions, persons, or groups for new invest-
ments, and expansions of existing investments, by eligible investors, 
in excess of limits which the Corporation would otherwise normally 
apply for its exposure to such investments. Contracts of reinsurance 
issued under the program shall be on equitable terms. The program, 
and any project covered by reinsurance under the program, shall be 
consistent with the provisions of this title. 
"(b) PERSONS EUGIBLE FOR THE PROGRAM.—An insurance com-
pany, financial institution, or other person shall be eligible to 
participate in the facultative reinsurance program established 
under subsection (a) if that company, institution, or other person is 
an eligible investor under this title. The Corporation shall take steps 
to encourage equitable participation in the program by all eligible 
persons. 
"(c) MAXIMUM EXPOSURE.—The exposure of the Corporation under 
the facultative reinsurance program at any one time may not exceed 
$150,000,000 or, with respect to any one country, $50,000,000. 
"(d) ADVISORY GROUP.— 
"(1) EsTABUSHMENT AND MEMBERSHIP.—The Corporation shall 
establish a group to advise the Corporation on the development 
and implementation of the program of facultative reinsurance 
under this section. The group shall be composed of nine mem-
bers as follows: 
"(A) Three officers or employees of the Corporation des-
ignated by the Board. 
"(B) Four persons appointed by the Board, of whom at 
least one shall represent an insurance company, one a 
reinsurance brokerage firm, and one an underwriter, a 
financial institution, or other person or entity eligible for 
PUBLIC LAW 99-204—DEC. 23, 1985 
99 STAT. 1673 
the facultative reinsurance program under this section. In 
selecting such persons, the Board shall consider their pre-
vious active involvement in the field of political risk insur-
ance or reinsurance and shall consult with any major 
organizations representing insurance, reinsurance, and 
brokerage institutions as to the suitability of the respective 
candidates to represent their industry. 
"(C) Two persons appointed by the Board from among 
persons who are eligible investors, other than persons de-
scribed in subparagraph (B). 
"(2) FUNCTIONS.—The advisory group shall advise the Cor-
pjoration on the development and implementation of the faculta-
tive reinsurance program under this section, including ways to 
ensure equitable participation in the program by all eligible 
persons. 
"(3) MEETINGS.—The advisory group shall meet not later than 
one hundred and eighty days after the date of the enactment of 
the Overseas Private Investment Corporation Amendments Act 
of 1985, and not less than once in every one hundred and eighty-
day period thereafter. 
(4) FEDERAL ADVISORY COMMITTEE ACT.—The advisory group 
shall not be subject to the Federal Advisory Committee Act (5 
U.S.C. App.). 
"(e) REPORT TO THE CONGRESS.—The Corporation shall, not later 
than eighteen months after the date of the enactment of the Over-
seas Private Investment Corporation Amendments Act of 1985, 
submit to the Committee on Foreign Affairs of the House of Rep-
resentatives and the Committee on Foreign Relations of the Senate 
a report on the implementation of the facultative reinsurance pro-
gram established under subsection (a).", 
(b) TECHNICAL AMENDMENTS.— 
(1) Section 235(d) (22 U.S.C. 2195(d)) is amended in the first 
sentence by striking out "or under similar predecessor guaranty 
authority" and inserting in lieu thereof ", under similar prede-
cessor guaranty authority, or under section 234A". 
(2) Section 237(f) (22 U.S.C. 2197(f)) is amended in the last 
sentence by inserting "or 234A" after "234". 
(3) Section 240 (22 U.S.C. 2200) is amended in the last sentence 
by inserting "and section 234A" after "234". 
SEC. 10. EXTENSION OF ISSUING AUTHORITY. 
Section 235(aX5) (22 U.S.C. 2195(aX5)) is amended by striking out 
"1985" and inserting in lieu thereof "1988". 
SEC. 11. AUDITS OF THE CORPORATION. 
Section 239(c) (22 U.S.C. 2199(c)) is amended to read as follows: 
"(c)(1) The Corporation shall be subject to the applicable provi-
sions of chapter 91 of title 31, United States Code, except as other- 
31 use 9ioi et 
wise provided in this title. 
seq. 
"(2) An independent certified public accountant shall perform a 
financial and compliance audit of the financial statements of the 
Corporation at least once every three years, in accordance with 
generally accepted Government auditing standards for a financial 
and compliance audit, as issued by the Comptroller General. The 
Report. 
independent certified public accountant shall report the results of 
such audit to the Board. The financial statements of the Corporation 
shall be presented in accordance with generally accepted accounting 
99 STAT. 1674 
PUBLIC LAW 99-204—DEC. 23, 1985 
Report. 
Report. 
Reports. 
Loans. 
Exports. 
principles. These financial statements and the report of the account-
ant shall be included in a report which contains, to the extent 
applicable, the information identified in section 9106 of title 31, 
United States Code, and which the Corporation shall submit to the 
Congress not later than six and one-half months after the end of the 
last fiscal year covered by the audit. The General Accounting Office 
may review the audit conducted by the accountant and the report to 
the Congress in the manner and at such times as the General 
Accounting Office considers necessary, 
"(3) In lieu of the financial and compliance audit required by 
paragraph (2), the General Accounting Office shall, if the Office 
considers it necessary or upon the request of the Congress, audit the 
financial statements of the Corporation in the manner provided in 
paragraph (2). The Corporation shall reimburse the General 
Accounting Office for the full cost of any audit conducted under this 
paragraph. 
"(4) All books, accounts, financial records, reports, files, 
workpapers, and property belonging to or in use by the Corporation 
and the accountant who conducts the audit under paragraph (2), 
which are necessary for purposes of this subsection, shall be made 
available to the representatives of the General Accounting Office.". 
SEC. 12. EXEMPTION FROM TAXATION. 
Section 239 (22 U.S.C. 2199) is amended by adding at the end 
thereof the following: 
"(j) The Corporation, including its franchise, capital, reserves, 
surplus, advances, intangible property, and income, shall be exempt 
from all taxation at any time imposed by the United States, by any 
territory, dependency, or possession of the United States, or by any 
State, the District of Columbia, or any county, municipality, or local 
taxing authority.". 
SEC. 13. PUBLICATION OF POLICY GUIDELINES. 
Section 239, as amended by the preceding section of this Act, is 
further amended by adding at the end thereof the following: 
"(k) The Corporation shall publish, and make available to ap-
plicants for insurance, reinsurance, guarantees, financing, or other 
assistance made available by the Corporation under this title, the 
policy guidelines of the Corporation relating to its programs.". 
SEC. 14. EFFECTS OF OPIC ACTIVITIES ON EMPLOYMENT IN THE UNITED 
STATES. 
(a) OPIC REPORTS.—Section 240A (22 U.S.C. 2200a) is amended— 
(1) by inserting "(a)" immediately before "After" in the first 
sentence; and 
(2) by adding at the end of the section the following new 
subsections: 
"OJXD Each annual report required by subsection (a) shall contain 
projections of the effects on employment in the United States of all 
projects for which, during the preceding fiscal year, the Corporation 
initially issued any insurance, reinsurance, or guaranty or made 
any direct loan. Each such report shall include projections o
f
— 
"(A) the amount of United States exports to be generated by 
those projects, both during the start-up phase and over a period 
of years; 
(B) the final destination of the products to be produced as a 
result of those projects; and 
PUBLIC LAW 99-204—DEC. 23, 1985 
99 STAT. 1675 
"(C) the impact such production will have on the production 
of similar products in the United States with regard to both 
domestic sales and exports. 
"(2) Each report required by this subsection shall be based on an 
analysis of each of the projects described in paragraph (1). The 
reports may, however, present information and an^ysis in aggre-
gate form, but only i
f
—
• 
"(A) those projects which are projected to have a positive 
effect on employment in the United States and those projects 
which are projected to have a negative effect on employment in 
the United States are grouped separately; and 
"(B) there is set forth for each such grouping the key 
characteristics of the projects within that grouping, including 
the number of projects in each economic sector, the countries in 
which the projects in each economic sector are located, and the 
projected level of the impact of the projects in each economic 
sector on employment in the United States and on United 
States trade. 
"(cXD Not later than December 31, 1987, the Corporation shall 
submit to the Congress a report analyzing the actual effects, as of 
September 30, 1986, on employment in the United States of all 
projects with respect to which any insurance, reinsurance, or guar-
anty issued by the Corporation was in effect on September 30,1986, 
or with respect to which repayments on direct loans by the Corpora-
tion were being made as of that date. The report shall set forth— 
"(A) the amount of United States exports generated by those 
projects during each fiscal year, 
"(B) to the extent feasible, the final destination of the prod-
ucts produced each fiscal year as a result of those projects, and 
"(C) the impact of such production on the production of 
similar products in the United States during each fiscal year 
with regard to both domestic sales and exports. 
"(2) In preparing this report, the Corporation shall collect factual 
data for each of the projects described in paragraph (1). The report 
may, however, present this information and the analysis of this 
information in aggregate form, but only if— 
"(A) those projects which have a positive effect on employ-
ment in the United States and those projects which have a 
negative effect on employment in the United States are grouped 
separately; and 
"(B) there is set forth for each such grouping the key 
characteristics of the projects within that grouping, including 
the number of projects in each economic sector, the countries in 
which the projects in each economic sector are located, and the 
impact of the projects in each economic sector on the level of 
employment in the United States and on the United States 
trade balance. 
"(3) The Corporation shall consult with the Committee on Foreign 
Affairs of the House of Representatives and the Committee on 
Foreign Relations of the Senate in determining the methodology to 
be used in acquiring the information and in doing the analysis 
necessary to prepare the report required by this subsection, includ-
ing identification of which projects should be analyzed. To facilitate 
this consultation, the Corporation shall submit to those committees 
by September 30, 1986, a written description of its proposed meth-
odology, including its proposed methodology with respect to deter-
mining final destinations. 
Exports. 
Commerce and 
trade. 
Reports. 
Loans. 
Exports. 
Commerce and 
trade. 
99 STAT. 1676 
PUBLIC LAW 99-204—DEC. 23, 1985 
"(4) To the extent that the report required by this subsection does 
not identify the final destination of the products produced as a 
result of a particular project, the report shall explain why it was not 
feasible to provide that information. 
"(d) The Corporation shall maintain as part of its records— 
"(1) all information collected in preparing the report required 
by subsection (c), whether the information was collected by the 
Corporation itself or by a contractor; and 
"(2) a copy of the analysis of each project analyzed in prepar-
ing the reports required by either subsection (b) or (c). 
"(e) Subsections (b) and (c) do not require the inclusion in any 
report submitted pursuant to those subsections of any information 
which would not be required to be made available to the public 
pursuant to section 552 of title 5, United States Code (relating to 
freedom of information).". 
(b) GAO STUDY AND REPORT.—The Comptroller General shall 
conduct a study of the impact on emplojrment in the United States 
of the activities of the Overseas Private Investment Corporation and 
shall prepare and transmit to the Congress a report setting forth the 
findings of that study within one year after the date of enactment of 
this Act. 
SEC. 15. RETURN OF APPROPRIATED FUNDS. 
Repeal. 
Section 240B (22 U.S.C. 2200b) is repealed. 
SEC. 16. FALSE ADVERTISING OR MISUSE OF THE NAME OF THE CORPORA-
TION. 
Section 709 of title 18, United States Code, is amended by insert-
ing after the tenth paragraph the following: 
"Whoever uses the words 'Overseas Private Investment', 'Over-
seas Private Investment Corporation', or 'OPIC, as part of the 
business or firm name of a person, corporation, partnership, busi-
ness trust, association, or business entity; or". 
SEC. 17. TECHNICAL AMENDMENTS. 
(a) CLARIFICATION OF DEFINITION OF EUGIBLE PERSON.—Clause (2) 
of section 238(c) (22 U.S.C. 2198(c)(2)) is amended by striking out "or 
any State or territory thereof and inserting in lieu thereof ", any 
State or territory thereof, or the District of Columbia,". 
(b) CONFORMING INTERNAL CROSS-REFERENCES.—Section 235 (22 
U.S.C. 2195) is amended— 
(1) in subsection (c)— 
(A) by striking out "section 235(d)" and inserting in lieu 
thereof "subsection (d) of this section"; 
(B) by striking out "section 234(e)" and inserting in lieu 
thereof "subsection (e) of this section"; and 
(C) by striking out "section 235(f)" and inserting in lieu 
thereof "subsection (f) of this section"; and 
(2) in subsection (d) by striking out "section 235(f)" each place 
it appears and inserting in lieu thereof "subsection (f) of this 
section". 
PUBLIC LAW 99-204—DEC. 23, 1985 
99 STAT. 1677 
(c) REPEAL OF EXECUTED REPORTING REQUIREMENT.—Section 9 of 
the Overseas Private Investment Corporation Amendments Act of 
1981 (Public Law 97-65) is amended— 
(1) by striking out "(a)" after "SEC. 9."; and 
2
2 use 2200a. 
(2) by striking out subsection (b). 
22 U
S
C 2200a 
note. 
Approved December 23, 1985. 
LEGISLATIVE HISTORY—S. 947 (H.R. 3166): 
HOUSE REPORTS: No. 99-285 accompanying H.R. 3166 (Comm. on Foreign Affairs) 
and No. 99-428 (Comm. of Conference). 
SENATE REPORT No. 99-156 (Comm. on Foreign Relations). 
CONGRESSIONAL RECORD, Vol. 131 (1985): 
Sept. 23, H.R. 3166 considered and passed House. 
Nov. 14, considered and passed Senate. 
Dec. 3, considered and passed House, amended, in lieu of H.R. 3166. 
Dec. 11, House agreed to conference report. 
Dec. 12, Senate agreed to conference report.