[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3847 Introduced in House (IH)]
<DOC>
114th CONGRESS
1st Session
H. R. 3847
To provide for reforms of the Export-Import Bank of the United States.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 28, 2015
Mr. Issa (for himself, Mr. Peterson, and Mr. Hunter) introduced the
following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To provide for reforms of the Export-Import Bank of the United States.
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 ``Export-Import Bank Reform Act''.
SEC. 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. Review of Bank product pricing and credit standards to avoid
crowding out of private export finance.
Sec. 102. Prohibited countries.
Sec. 103. Employee certification and financial disclosure.
Sec. 104. Parallel GAAP reporting.
Sec. 105. Making the Bank the lender of last resort for loans,
attempting private financing first.
Sec. 106. Audit committee.
Sec. 107. Report on privatizing the Bank.
Sec. 108. 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. Limitations on outstanding loans, guarantees, and insurance.
Sec. 205. Credit risk.
TITLE III--JOB GROWTH
Sec. 301. Medium-sized enterprises.
Sec. 302. Inflation adjustment.
TITLE I--IMPROVING TRANSPARENCY OF THE EXPORT-IMPORT BANK OF THE UNITED
STATES
SEC. 101. 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:
``(l) 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.''.
SEC. 102. PROHIBITED COUNTRIES.
Section 8 of the Export-Import Bank Act of 1945 (12 U.S.C. 635g),
as amended by section 101 of this Act, is amended by adding at the end
the following:
``(m) 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).''.
SEC. 103. 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.''.
SEC. 104. PARALLEL GAAP REPORTING.
Section 8 of the Export-Import Bank Act of 1945 (12 U.S.C. 635g),
as amended by sections 101 and 102 of this Act, is amended by adding at
the end the following:
``(n) 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.''.
SEC. 105. 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:
``(l) 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.''.
SEC. 106. AUDIT COMMITTEE.
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) 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.--Two members shall constitute a
quorum of the Audit Committee.
``(ii) Action only by majority vote.--The Audit
Committee may act only by majority vote.''.
SEC. 107. 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.
SEC. 108. 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).
TITLE II--IMPROVING THE ACCOUNTABILITY OF THE EXPORT-IMPORT BANK OF THE
UNITED STATES
SEC. 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.''.
SEC. 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.''.
SEC. 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.''.
SEC. 204. 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.''.
SEC. 205. 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''.
TITLE III--JOB GROWTH
SEC. 301. 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.''.
SEC. 302. INFLATION ADJUSTMENT.
Section 12 of the Export-Import Bank Act of 1945 (12 U.S.C. 635i-6)
is amended to read as follows:
``SEC. 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.''.
<all>