[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3005 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
S. 3005
To amend the Better Utilization of Investments Leading to Development
Act of 2018 to enhance the economic and strategic competitiveness of
the United States, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
October 3, 2023
Mr. Coons (for himself and Mr. Cornyn) introduced the following bill;
which was read twice and referred to the Committee on Foreign Relations
_______________________________________________________________________
A BILL
To amend the Better Utilization of Investments Leading to Development
Act of 2018 to enhance the economic and strategic competitiveness of
the United States, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Enhancing American Competitiveness
Act of 2023''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Relations, the
Committee on Appropriations, and the Committee on the
Budget of the Senate; and
(B) the Committee on Foreign Affairs, the Committee
on Appropriations, and the Committee on the Budget of
the House of Representatives.
(2) Corporation.--The term ``Corporation'' means the United
States International Development Finance Corporation.
SEC. 3. FINDINGS.
Congress finds the following:
(1) The mission of the Corporation is to mobilize
investment to advance global development, foreign policy
objectives of the United States, and taxpayer interests.
(2) Congress established the Corporation to leverage
private sector capabilities and to serve as a robust
alternative to state-directed investments by authoritarian
governments and strategic competitors of the United States.
(3) Congress authorized the Corporation--
(A) to provide equity financing in order to provide
the Corporation with greater flexibility to invest in
early- and growth-stage companies, partner with other
financial institutions, and enable investees to scale
operations more effectively to create greater impact on
developments;
(B) under section 1421(d) of the BUILD Act of 2018
(22 U.S.C. 9621(d))--
(i) to provide insurance and reinsurance of
debt for the purposes of furthering United
States foreign policy, development, and
national security objectives; and
(ii) to insure debt investments;
(C) to collect insurance and reinsurance premiums
and pay insurance and reinsurance claims; and
(D) to make loans or guaranties upon such terms and
conditions as the Corporation may determine under
section 1421(b) of the BUILD Act of 2018 (22 U.S.C.
9621(b)) for the purposes of furthering foreign policy,
development, and national security objectives of the
United States.
(4) Under section 1422(b)(3) of that Act (22 U.S.C.
9621(b)(3)), Congress limited the authority described in
paragraph (3)(D) by requiring that for any loan or guaranty to
a project, the parties to the project bear the risk of loss in
an amount equal to at least 20 percent of the guaranteed
support by the Corporation in the project.
(5) Congress authorized the Corporation to guaranty 100
percent of an obligation, including a loan, a bond issuance, or
a tranche of any such loan or bond in which other parties to
the project bear the risk of loss in an amount equal to at
least 20 percent of the guaranteed support by the Corporation
in the project.
(6) Obstacles to the implementation of the authorities
described in paragraph (3) have constrained the ability of the
Corporation to leverage its full capacity to enhance the
economic and strategic competitiveness of the United States and
to cooperate effectively with foreign partners and the private
sector.
SEC. 4. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) the proper budgetary treatment of the insurance and
reinsurance authorities of the Corporation, including insurance
and reinsurance of debt, is not subject to budgetary treatment
under the requirements of Federal Credit Reform Act of 1990 (2
U.S.C. 661 et seq.); and
(2) guaranties provided by the Corporation in excess of 80
percent of an obligation are exempt from applicable provisions
of the Office of Management and Budget Circular A-129.
SEC. 5. MODIFICATION OF ELIGIBILITY DEFINITIONS.
The Build Act of 2018 (22 U.S.C. 9601 et seq.) is amended--
(1) in section 1402--
(A) by redesignating paragraphs (2), (3), and (4)
as paragraphs (3), (4), and (5), respectively; and
(B) by inserting after paragraph (1) the following:
``(2) Fragile and conflict-affected state.--The term
`fragile and conflict-affected state' means a country that--
``(A) is on the List of Fragile and Conflict-
affected Situations maintained by the Fragility,
Conflict and Violence Group of the World Bank; or
``(B) the Corporation, after consultation with the
Secretary of State and the Administrator of the United
States Agency for International Development, designates
as fragile or conflict-affected.''; and
(2) in section 1412(c), by striking paragraph (2) and
inserting the following:
``(2) Eligible countries.--The Corporation may provide
support under title II in a country that is--
``(A) eligible to receive development lending from
the World Bank; and
``(B) a fragile and conflict-affected state.''.
SEC. 6. BUDGETARY TREATMENT OF EQUITY INVESTMENTS BY THE CORPORATION.
Section 1421(c) of the BUILD Act of 2018 (22 U.S.C. 9521 (c)) is
amended by adding at the end the following:
``(7) Present value of equity account.--There is
established as a subaccount within the Corporate Capital
Account a fund to be known as the `Corporate Equity Account' to
carry out this subsection.
``(8) Budgetary treatment of equity investments.--
``(A) Calculation of the costs of investment.--
``(i) In general.--The cost of support
provided under paragraph (1) with respect to a
project shall be the net present value, at the
time when funds are disbursed to provide the
support, excluding administrative costs and any
incidental effects on governmental receipts or
outlays, of the following estimated cash flows:
``(I) The purchase price of the
investment.
``(II) Dividends, redemptions, and
other shareholder distributions during
the term of the support.
``(III) Proceeds received upon a
sale, redemption, or other liquidation
of the investment.
``(IV) Foreign currency
fluctuations, for support denominated
in foreign currencies.
``(V) Any other relevant cashflow.
``(ii) Changes in terms included.--The
estimated cash flows described in subclauses
(I) through (V) of clause (i) shall include the
effects of changes in terms resulting from the
exercise of options included in the agreement
to provide the support.
``(iii) Discount rate.--The discount rate
shall be the average interest rate on
marketable Treasury securities of similar
maturity to the support provided under
paragraph (1).
``(B) Transfer.--Subject to the availability of
appropriations, an amount equal to the cost of support
determined under subparagraph (A) shall be transferred
from the Corporate Capital Account to the Corporate
Equity Account.
``(C) Differential amount.--
``(i) Appropriation.--For any fiscal year,
upon the transfer of an amount pursuant to
subparagraph (B), an amount equal to the
differential amount shall be appropriated, out
of any money in the Treasury not otherwise
appropriated, to the Corporate Equity Account.
``(ii) Treatment as direct spending.--An
amount appropriated pursuant to clause (i)
shall be recorded as direct spending (as
defined by section 250(c)(8) of the Balanced
Budget and Emergency Deficit Control Act of
1985 (2 U.S.C. 900(c)(8)).
``(iii) Budgetary effects.--The following
shall apply to budget enforcement under the
Congressional Budget Act of 1974 (2 U.S.C. 601
et seq.), the Balanced Budget and Emergency
Deficit Control Act of 1985 (2 U.S.C. 900 et
seq.), and the Statutory Pay-As-You-Go Act of
2010 (2 U.S.C. 931 et seq.):
``(I) Future appropriations.--Any
amount appropriated pursuant to clause
(i) shall not be recorded as budget
authority or outlays for purposes of
any estimate under the Congressional
Budget Act of 1974 or the Balanced
Budget and Emergency Deficit Control
Act of 1985.
``(II) Statutory paygo
scorecards.--The budgetary effects of
any amounts appropriated pursuant to
clause (i) shall not be entered on
either PAYGO scorecard maintained
pursuant to section 4(d) of the
Statutory Pay As-You-Go Act of 2010 (2
U.S.C. 933(d)).
``(III) Senate paygo scorecards.--
The budgetary effects of any amounts
appropriated pursuant to clause (i)
shall not be entered on any PAYGO
scorecard maintained for purposes of
section 4106 of H. Con. Res. 71 (115th
Congress).
``(IV) Elimination of credit for
cancellation or rescission of
differential.--If there is enacted into
law an Act that rescinds or reduces an
amount appropriated pursuant to clause
(i), the amount of any such rescission
or reduction shall not be--
``(aa) estimated as a
reduction in direct spending
under the Congressional Budget
Act of 1974 or the Balanced
Budget and Emergency Deficit
Control Act of 1985; or
``(bb) entered on either
PAYGO scorecard maintained
pursuant to section 4(d) of the
Statutory Pay As-You-Go Act of
2010 or any PAYGO scorecard
maintained for purposes of
section 4106 of H. Con. Res. 71
(115th Congress).
``(iv) Differential amount defined.--In
this subparagraph, the term `differential
amount' means the difference between the cost
of support provided under paragraph (1), as
determined under subparagraph (A), and the
purchase price of the equity investment
involved.
``(D) Coordination.--
``(i) In general.--The Director of the
Office of Management and Budget, in
consultation with the Corporation, shall be
responsible for coordinating the cost estimates
required by this paragraph.
``(ii) Rule of construction.--Nothing in
this subparagraph shall be construed to change
the authority or responsibility of the
Corporation to determine the terms and
conditions of eligibility for, or the amount of
support provided by, the Corporation.''.
SEC. 7. MAXIMUM CONTINGENT LIABILITY.
Section 1433 of the BUILD Act of 2018 (22 U.S.C. 9633) is amended
by striking ``$60,000,000,000'' and inserting ``$100,000,000,000''.
SEC. 8. REPORTING REQUIREMENT.
Not later than 180 days after the date of the enactment of this
Act, the Chief Executive Officer of the Corporation shall submit to the
appropriate congressional committees a plan to expand the financing of
the Corporation to support national security and development priorities
of the United States in critical regions, including--
(1) a description of the budgetary, staffing, and
programmatic resources necessary to carry out the plan; and
(2) the effective date and the basis used, in consultation
with the Director of the Office of Management and Budget, to
calculate the net present value of funds appropriated for use
under section 1421(c) of the Build Act of 2018 (22 U.S.C.
9621(c)).
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