[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5105 Introduced in House (IH)]
<DOC>
115th CONGRESS
2d Session
H. R. 5105
To establish the United States International Development Finance
Corporation, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 27, 2018
Mr. Yoho (for himself and Mr. Smith of Washington) introduced the
following bill; which was referred to the Committee on Foreign Affairs
_______________________________________________________________________
A BILL
To establish the United States International Development Finance
Corporation, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Better Utilization
of Investments Leading to Development Act of 2018'' or the ``BUILD Act
of 2018''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--ESTABLISHMENT
Sec. 101. Statement of policy.
Sec. 102. United States International Development Finance Corporation.
Sec. 103. Management of Corporation.
Sec. 104. Inspector General of the Corporation.
TITLE II--AUTHORITIES
Sec. 201. Authorities relating to provision of support.
Sec. 202. Terms and conditions.
Sec. 203. Payment of losses.
Sec. 204. Termination.
TITLE III--ADMINISTRATIVE AND GENERAL PROVISIONS
Sec. 301. Operations.
Sec. 302. Corporate powers.
Sec. 303. Maximum contingent liability.
Sec. 304. Corporate funds.
Sec. 305. Coordination with Millennium Challenge Corporation on
constraints analysis.
TITLE IV--MONITORING, EVALUATION, AND REPORTING
Sec. 401. Establishment of risk and audit committees.
Sec. 402. Performance measures.
Sec. 403. Annual report.
Sec. 404. Publicly available project information.
Sec. 405. Audits and financial statements of the Corporation.
Sec. 406. Engagement with investors.
TITLE V--CONDITIONS, RESTRICTIONS, AND PROHIBITIONS
Sec. 501. Limitations and preferences.
Sec. 502. Additionality and avoidance of market distortion.
Sec. 503. Prohibition on support in sanctioned countries and with
sanctioned persons.
Sec. 504. Penalties for misrepresentation, fraud, and bribery.
Sec. 505. Market displacement by state-owned enterprises and
monopolies.
TITLE VI--TRANSITIONAL PROVISIONS
Sec. 601. Definitions.
Sec. 602. Reorganization plan.
Sec. 603. Transfer of functions.
Sec. 604. Termination of Overseas Private Investment Corporation and
other superceded authorities.
Sec. 605. Transitional authorities.
Sec. 606. Savings provisions.
Sec. 607. Other terminations.
Sec. 608. Incidental transfers.
Sec. 609. Reference.
Sec. 610. Conforming amendments.
SEC. 2. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Relations and the
Committee on Appropriations of the Senate; and
(B) the Committee on Foreign Affairs and the
Committee on Appropriations of the House of
Representatives.
(2) Less developed country.--The term ``less developed
country'' means a country with a low-income economy, lower-
middle-income economy, or upper-middle-income economy, as
defined by the International Bank for Reconstruction and
Development and the International Development Association
(collectively referred to as the ``World Bank'').
(3) Predecessor authority.--The term ``predecessor
authority'' means authorities repealed by title VI.
(4) Qualifying sovereign entity.--The term ``qualifying
sovereign entity'' means--
(A) any agency or instrumentality of a foreign
state (as defined in section 1603 of title 28, United
States Code); and
(B) any international financial institution (as
defined in section 1701(c) of the International
Financial Institutions Act (22 U.S.C. 262r(c))).
TITLE I--ESTABLISHMENT
SEC. 101. STATEMENT OF POLICY.
It is the policy of the United States to facilitate market-based
private sector development and economic growth in less developed
countries through the provision of credit, capital, and other financial
support--
(1) to mobilize private capital in support of sustainable,
broad-based economic growth, poverty reduction, and development
through demand-driven partnerships with the private sector that
further the foreign policy interests of the United States;
(2) to finance development in a way that builds and
strengthens civic institutions, promotes competition, provides
for public accountability and transparency;
(3) to help private sector actors overcome identifiable
market gaps and inefficiencies without distorting markets;
(4) to achieve clearly defined economic and social
development outcomes;
(5) to coordinate with institutions with purposes similar
to the purposes of the Corporation to leverage resources of
those institutions to produce the greatest impact;
(6) to help countries currently receiving United States
assistance to graduate from their status as recipients of
assistance;
(7) to leverage the private sector and innovative
development tools as a means to lessen the reliance of the
United States on traditional forms of foreign assistance over
time; and
(8) to complement and be guided by overall United States
foreign policy and development objectives, taking into account
the policies of countries receiving support.
SEC. 102. UNITED STATES INTERNATIONAL DEVELOPMENT FINANCE CORPORATION.
(a) Establishment.--There is established in the Executive branch
the United States International Development Finance Corporation (in
this Act referred to as the ``Corporation''), which shall be a wholly
owned Government corporation (as defined in section 9101 of title 31,
United States Code).
(b) Purpose.--The purpose of the Corporation shall be to mobilize
and facilitate the participation of private sector capital and skills
in the economic development of less developed countries, as described
in subsection (c), and countries in transition from nonmarket to market
economies, in order to complement the development assistance
objectives, and advance the foreign policy interests, of the United
States. In carrying out its purpose, the Corporation, utilizing broad
criteria, shall take into account in its financing operations the
economic and financial soundness of projects for which it provides
support under title II.
(c) Less Developed Economy Focus.--
(1) In general.--The Corporation shall prioritize the
provision of support under title II in countries with low-
income economies or lower-middle-income economies, as defined
by the World Bank.
(2) Support in countries with upper-middle-income
economies.--The Corporation shall restrict the provision of
support under title II in a country with an upper-middle-income
economy, as defined by the World Bank, unless--
(A) the President determines such support furthers
the national economic or foreign policy interests of
the United States; and
(B) such support is likely to be highly
developmental or provide developmental benefits to the
poorest population of that country.
(d) Authorization To Make Expenditures and Commitments.--The
Corporation may make, without regard to fiscal year limitation, such
expenditures and commitments as may be necessary using amounts
appropriated to the Corporation pursuant to section 9104 of title 31,
United States Code, and otherwise in accordance with law.
(e) Project-Specific Transaction Costs Not Administrative
Expenses.--Project-specific transaction costs, including direct and
indirect costs incurred in claims settlements, and other direct costs
associated with the provision of support to private sector entities and
qualifying sovereign entities under title II shall not be considered
administrative expenses for the purposes of this section.
SEC. 103. MANAGEMENT OF CORPORATION.
(a) Structure of Corporation.--There shall be in the Corporation a
Board of Directors (in this Act referred to as the ``Board''), a Chief
Executive Officer, a Deputy Chief Executive Officer, a Chief Risk
Officer, and such other officers as the Board may determine.
(b) Board of Directors.--
(1) Duties.--All powers of the Corporation shall vest in
and be exercised by or under the authority of the Board. The
Board--
(A) shall perform the functions specified to be
carried out by the Board in this Act; and
(B) may prescribe, amend, and repeal bylaws, rules,
regulations, and procedures governing the manner in
which the business of the Corporation may be conducted
and in which the powers granted to the Corporation by
law may be exercised.
(2) Membership of board.--
(A) In general.--The Board shall consist of--
(i) the Chief Executive Officer of the
Corporation;
(ii) the officers specified in subparagraph
(B); and
(iii) four other individuals who shall be
appointed by the President, by and with the
advice and consent of the Senate, of which--
(I) one individual should be
appointed from among a list of
individuals submitted by the majority
leader of the Senate after consultation
with the chairman of the Committee on
Foreign Relations of the Senate;
(II) one individual should be
appointed from among a list of
individuals submitted by the minority
leader of the Senate after consultation
with the ranking member of the
Committee on Foreign Relations of the
Senate;
(III) one individual should be
appointed from among a list of
individuals submitted by the Speaker of
the House of Representatives after
consultation with the chairman of the
Committee on Foreign Affairs of the
House of Representatives; and
(IV) one individual should be
appointed from among a list of
individuals submitted by the minority
leader of the House of Representatives
after consultation with the ranking
member of the Committee on Foreign
Affairs of the House of
Representatives.
(B) Officers specified.--
(i) In general.--The officers specified in
this subparagraph are the following:
(I) The Secretary of State or a
designee of the Secretary.
(II) The Administrator of the
United States Agency for International
Development or a designee of the
Administrator.
(III) The Secretary of the Treasury
or a designee of the Secretary.
(IV) The Secretary of Commerce or a
designee of the Secretary.
(ii) Requirements for designees.--A
designee under clause (i) shall be selected
from among officers--
(I) appointed by the President, by
and with the advice and consent of the
Senate;
(II) whose duties relate to the
programs of the Corporation; and
(III) who is designated by and
serving at the pleasure of the
President.
(C) Requirements for private sector members.--A
member of the Board described in subparagraph
(A)(iii)--
(i) may not be an officer or employee of
the United States Government;
(ii) shall have relevant private sector
experience to carry out the purposes of the
Corporation;
(iii) shall be appointed for a term of 3
years and may be reappointed for one additional
term;
(iv) shall serve until the member's
successor is appointed and confirmed;
(v) shall be compensated at a rate
equivalent to that of level IV of the Executive
Schedule under section 5315 of title 5, United
States Code, when engaged in the business of
the Corporation; and
(vi) may be paid per diem in lieu of
subsistence at the applicable rate under the
Federal Travel Regulation under subtitle F of
title 41, Code of Federal Regulations, from
time to time, while away from the home or usual
place of business of the member.
(3) Chairperson.--There shall be a Chairperson of the Board
designated by the President from among the individuals
described in paragraph (2)(A).
(4) Vice chairperson.--The Administrator of the United
States Agency for International Development, or the designee of
the Administrator under paragraph (2)(B)(i)(II), shall serve as
the Vice Chairperson of the Board.
(5) Quorum.--Six members of the Board shall constitute a
quorum for the transaction of business by the Board.
(c) Public Hearings.--
(1) Public hearings by the board.--The Board shall hold at
least one public hearing each year in order to afford an
opportunity for any person to present views with respect to
whether--
(A) the Corporation is carrying out its activities
in accordance with this Act; and
(B) any support provided by the Corporation under
title II in any country should have been or should be
extended.
(2) Additional public hearings.--In conjunction with each
meeting of the Board, the Corporation shall hold a public
hearing in order to afford an opportunity for any person to
present views regarding the activities of the Corporation. Such
views shall be made part of the record.
(d) Chief Executive Officer.--
(1) Appointment.--There shall be in the Corporation a Chief
Executive Officer, who shall be appointed by the President, by
and with the advice and consent of the Senate, and who shall
serve at the pleasure of the President.
(2) Authorities and duties.--The Chief Executive Officer
shall be responsible for the management of the Corporation and
shall exercise the powers and discharge the duties of the
Corporation subject to the bylaws, rules, regulations, and
procedures established by the Board.
(3) Relationship to board.--The Chief Executive Officer
shall report to and be under the direct authority of the Board.
(4) Compensation.--Section 5313 of title 5, United States
Code, is amended by adding at the end the following:
``Chief Executive Officer, United States International
Development Finance Corporation.''.
(e) Deputy Chief Executive Officer.--There shall be in the
Corporation a Deputy Chief Executive Officer, who shall be appointed by
the President, by and with the advice and consent of the Senate, and
who shall serve at the pleasure of the President.
(f) Chief Risk Officer.--
(1) Appointment.--Subject to the approval of the Board, the
Chief Executive Officer of the Corporation shall appoint a
Chief Risk Officer, from among individuals with experience at a
senior level in financial risk management, who--
(A) shall have as the officer's sole function to
serve as Chief Risk Officer of the Corporation;
(B) shall report directly to the Board; and
(C) shall be removable only by a majority vote of
the Board.
(2) Duties.--The Chief Risk Officer shall, in coordination
with the audit committee of the Board established under 401,
develop, implement, and manage a comprehensive process for
identifying, assessing, monitoring, and limiting risks to the
Corporation, including the overall portfolio of the
Corporation.
(g) Coordination.--The Chief Executive Officer shall consult with
the Administrator of the United States Agency for International
Development and Chief Executive Officer of the Millennium Challenge
Corporation to coordinate the activities of the Corporation with the
activities of the United States Agency for International Development
and the Millennium Challenge Corporation, such as by establishing in
the Corporation a Chief Development Officer who shall have
responsibility for coordinating development finance policy and
implementation efforts of the Corporation with the United States Agency
for International Development and the Millennium Challenge Corporation
and their respective development missions.
(h) Officers and Employees.--
(1) In general.--Except as otherwise provided in this
section, officers, employees, and agents shall be selected and
appointed by the Corporation, and shall be vested with such
powers and duties as the Corporation may determine.
(2) Administratively determined employees.--
(A) Appointment; compensation; removal.--Of
officers and employees employed by the Corporation
under paragraph (1), not to exceed 50 may be appointed,
compensated, or removed without regard to title 5,
United States Code.
(B) Reinstatement.--Under such regulations as the
President may prescribe, officers and employees
appointed to a position under subparagraph (A) may be
entitled, upon removal from such position (unless the
removal was for cause), to reinstatement to the
position occupied at the time of appointment or to a
position of comparable grade and salary.
(C) Additional positions.--Positions authorized by
subparagraph (A) shall be in addition to those
otherwise authorized by law, including positions
authorized under section 5108 of title 5, United States
Code.
(D) Rates of pay for officers and employees.--The
Corporation may set and adjust rates of basic pay for
officers and employees appointed under subparagraph (A)
without regard to the provisions of chapter 51 or
subchapter III of chapter 53 of title 5, United States
Code, relating to classification of positions and
General Schedule pay rates, respectively.
(3) Liability of employees.--
(A) In general.--An individual who is a member of
the Board or an officer or employee of the Corporation
has no liability under this Act with respect to any
claim arising out of or resulting from any act or
omission by the individual within the scope of the
employment of the individual in connection with any
transaction by the Corporation.
(B) Rule of construction.--Subparagraph (A) shall
not be construed to limit personal liability of an
individual for criminal acts or omissions, willful or
malicious misconduct, acts or omissions for private
gain, or any other acts or omissions outside the scope
of the individual's employment.
(C) Savings provision.--This paragraph shall not be
construed--
(i) to affect--
(I) any other immunities and
protections that may be available to an
individual described in subparagraph
(A) under applicable law with respect
to a transaction described in that
subparagraph; or
(II) any other right or remedy
against the Corporation, against the
United States under applicable law, or
against any person other than an
individual described in subparagraph
(A) participating in such a
transaction; or
(ii) to limit or alter in any way the
immunities that are available under applicable
law for Federal officers and employees not
described in this paragraph.
SEC. 104. INSPECTOR GENERAL OF THE CORPORATION.
The President shall appoint and maintain an Inspector General in
the Corporation, in accordance with the Inspector General Act of 1978
(5 U.S.C. App.).
TITLE II--AUTHORITIES
SEC. 201. AUTHORITIES RELATING TO PROVISION OF SUPPORT.
(a) Lending and Guaranties.--
(1) In general.--The Corporation may make loans or
guarantee loans upon such terms and conditions as the
Corporation may determine.
(2) Denomination.--Loans and guaranties issued under
paragraph (1) may be denominated and repayable in United States
dollars or foreign currencies.
(3) Applicability of federal credit reform act of 1990.--
Loans and guaranties issued under paragraph (1) shall be
subject to the requirements of the Federal Credit Reform Act of
1990 (2 U.S.C. 661 et seq.).
(b) Equity Investments.--
(1) In general.--The Corporation may, as a minority
investor, support projects with funds or use other mechanisms
for the purpose of purchasing, and may make and fund
commitments to purchase, invest in, make pledges in respect of,
or otherwise acquire, equity or quasi-equity securities or
shares or financial interests of any entity, including as a
limited partner or other investor in investment funds, upon
such terms and conditions as the Corporation may determine.
(2) Denomination.--Support provided under paragraph (1) may
be denominated and repayable in United States dollars or
foreign currency.
(3) Guidelines and criteria.--The Corporation shall develop
guidelines and criteria to require that the use of the
authority provided by paragraph (1) with respect to a project
has a clearly defined development rationale, taking into
account the following factors:
(A) The support for the project would be more
likely than not to substantially reduce or overcome the
effect of an identified market failure in the country
in which the project is carried out.
(B) The project would not have proceeded or would
have been substantially delayed without the support.
(C) The support will meaningfully contribute to
transforming local conditions to promote the
development of markets.
(D) The support can be shown to be aligned with
commercial partner incentives.
(E) The support can be shown to have significant
developmental impact and will contribute to long-term
commercial sustainability.
(4) Limitations on equity investments.--
(A) Per project limit.--The aggregate amount of
support provided under this subsection with respect to
any project shall not exceed 20 percent of the
aggregate amount of all equity investment made from any
source to the project at the time that the Corporation
approves support of the project.
(B) Total limit.--Support provided pursuant to this
subsection shall be limited to not more than 35 percent
of the Corporation's aggregate exposure on the date
that such support is provided.
(5) Sales and liquidation of position.--The Corporation
shall seek to sell and liquidate any support for a project
provided under this subsection as soon as commercially
feasible, commensurate with other similar investors in the
project.
(c) Insurance and Reinsurance.--The Corporation may issue insurance
or reinsurance, upon such terms and conditions as the Corporation may
determine, to private sector entities and qualifying sovereign entities
assuring protection of their investments in whole or in part against
any or all political risks such as currency inconvertibility and
transfer restrictions, expropriation, war, terrorism, and civil
disturbance, breach of contract, or non-honoring of financial
obligations.
(d) Promotion of and Support for Private Investment
Opportunities.--
(1) In general.--The Corporation may initiate and support,
through financial participation, incentive grant, or otherwise,
and on such terms and conditions as the Corporation may
determine, feasibility studies for the planning, development,
and management of, and procurement for, bilateral and
multilateral development projects, including training
activities undertaken in connection with such projects, for the
purpose of promoting investment in such projects and the
identification, assessment, surveying, and promotion of private
investment opportunities, utilizing wherever feasible and
effective, the facilities of private investors.
(2) Contributions to costs.--The Corporation shall, to the
maximum extent practicable, require any person receiving funds
under the authorities of this subsection to--
(A) share the costs of feasibility studies and
other project planning services funded under this
subsection; and
(B) reimburse the Corporation those funds provided
under this section, if the person succeeds in project
implementation.
(e) Special Projects and Programs.--The Corporation may administer
and manage special projects and programs, including programs of
financial and advisory support that provide private technical,
professional, or managerial assistance in the development of human
resources, skills, technology, capital savings, and intermediate
financial and investment institutions and cooperatives and including
the initiation of incentives, grants, and studies for renewable energy,
microenterprise households, and other small business activities.
(f) Enterprise Funds.--
(1) In general.--The Corporation may establish and operate
enterprise funds in accordance with this subsection.
(2) Procedures and requirements.--The provisions of section
201 of the Support for East European Democracy (SEED) Act of
1989 (22 U.S.C. 5421) (other than the provisions of subsections
(a), (b), (c), (d)(1), (d)(3), (e), (f), and (j) of that
section), shall be deemed to apply with respect to any
enterprise fund established by the Corporation under this
subsection and to funds made available to any such enterprise
fund in the same manner and to the same extent as such
provisions apply with respect to enterprise funds established
pursuant to such section 201 or to funds made available to
enterprise funds established under that section.
(3) Purposes for which support may be provided.--The
Corporation, subject to the approval of the Board, may
designate private, nonprofit organizations as eligible to
receive support under this subsection for the following
purposes:
(A) To promote development of economic freedom and
private sectors, including small- and medium-sized
businesses and joint ventures with the United States
and host country participants.
(B) To facilitate access to the credit to small-
and medium-sized businesses with sound business plans
in countries where there is limited means of accessing
credit on market terms.
(C) To promote policies and practices conducive to
economic freedom and private sector development.
(D) To attract foreign direct investment capital to
further promote private sector development and economic
freedom.
(E) To complement the work of the United States
Agency for International Development and other donors
to improve the overall business-enabling environment,
financing the creation and expansion of the private
business sector.
(F) To make financially sustainable investments
designed to generate measurable social benefits and
build technical capacity in addition to financial
returns.
(4) Operation of funds.--
(A) Expenditures.--Funds made available to an
enterprise fund shall be expended at the minimum rate
necessary to make timely payments for projects and
activities carried out under this subsection.
(B) Administrative expenses.--Not more than 3
percent of the funds made available to an enterprise
fund may be obligated or expended for the
administrative expenses of the enterprise fund.
(5) Board of directors.--Each enterprise fund established
under this subsection shall be governed by a Board of Directors
comprised of private citizens of the United States or the host
country, who--
(A) shall be appointed by the President after
consultation with the chairmen and ranking members of
the appropriate congressional committees; and
(B) have pursued careers in international business
and have demonstrated expertise in international and
emerging market investment activities.
(6) Majority member requirement.--The majority of the
members of the Board of Directors shall be United States
citizens.
(7) Reports.--Not later than one year after the date of the
establishment of an enterprise fund under this subsection, and
annually thereafter until the enterprise fund terminates in
accordance with paragraph (10), the Board of Directors of the
enterprise fund shall--
(A) submit to the appropriate congressional
committees a report--
(i) detailing the administrative expenses
of the enterprise fund during the year
preceding the submission of the report;
(ii) describing the operations, activities,
financial condition, and accomplishments of the
enterprise fund during that year; and
(iii) describing the results of the audit
conducted under paragraph (8) during that year;
and
(B) publish, on a publicly available internet
website of the enterprise fund, each report required by
subparagraph (A).
(8) Oversight.--
(A) Inspector general performance audits.--
(i) In general.--The Inspector General of
the Corporation shall conduct periodic audits
of the activities of each enterprise fund
established under this subsection.
(ii) Consideration.--In conducting an audit
under clause (i), the Inspector General shall
assess whether the activities of the enterprise
fund--
(I) support the purposes described
in paragraph (3);
(II) result in profitable private
sector investing; and
(III) generate measurable social
benefits.
(B) Recordkeeping requirements.--The Corporation
shall ensure that each enterprise fund receiving
support under this subsection--
(i) keeps separate accounts with respect to
such support; and
(ii) maintains such records as may be
reasonably necessary to facilitate effective
audits under this paragraph.
(9) Return of funds to treasury.--Any funds resulting from
any liquidation, dissolution, or winding up of an enterprise
fund, in whole or in part, shall be returned to the Treasury of
the United States.
(10) Termination.--The authority of an enterprise fund to
provide support under this subsection shall terminate on the
earlier of--
(A) the date that is 7 years after the date of the
first expenditure of amounts from the enterprise fund;
or
(B) the date on which the enterprise fund is
liquidated.
(g) Other Authorities.--The Corporation shall have, in addition to
other authorities provided under this section, such authorities as are
provided for under the State Department Basic Authorities Act of 1956
(22 U.S.C. 2651a et seq.) and the Foreign Assistance Act of 1961 (22
U.S.C. 2151 et seq.) and delegated by the President to the Overseas
Private Investment Corporation or an element of the United States
Agency for International Development specified in section 603(a)(2) as
of the day before the date of the enactment of this Act.
SEC. 202. TERMS AND CONDITIONS.
(a) In General.--Except as provided in subsection (b), support
provided by the Corporation under this title shall be on such terms and
conditions as the Corporation may prescribe.
(b) Requirements.--The following requirements apply to support
provided by the Corporation under this title:
(1) The Corporation shall make a loan or guaranty only if
it is necessary--
(A) to alleviate a credit market imperfection; or
(B) to achieve specified objectives of the United
States Government by providing support in the most
efficient way to meet those objectives on a borrower-
by-borrower basis.
(2) The final maturity of a loan made or guaranteed by the
Corporation shall not exceed the lesser of--
(A) 25 years; or
(B) the useful life of any physical asset to be
financed by the loan (as determined by the
Corporation).
(3) The Corporation shall, with respect to providing any
loan guaranty to a project, require the parties to the loan
guaranteed by the Corporation to bear the risk of loss for at
least 20 percent of the guaranteed support by the Corporation
in the project.
(4) The Corporation may not guarantee a loan unless the
Corporation determines that the lender is responsible and that
adequate provision is made for servicing the loan on reasonable
terms and protecting the financial interest of the United
States.
(5) The interest rate for direct loans and interest
supplements on guaranteed loans shall be set by reference to a
benchmark interest rate (yield) on marketable Treasury
securities or other widely recognized benchmarks with a similar
maturity to the loans being made or guaranteed. The Corporation
shall establish appropriate minimum interest rates for loans,
guarantees, insurance, and other instruments as necessary.
(6) The minimum interest rate for new loans as established
by the Corporation shall be adjusted periodically to take
account of changes in the interest rate of the benchmark
financial instrument.
(7)(A) The Corporation shall set fees or premiums for loan
guarantee or insurance coverage at levels that minimize the
cost to the Government (as defined in section 502 of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) of such
coverage, while supporting achievement of the objectives of the
loan.
(B) The Corporation shall set the minimum guarantee fee or
insurance premium at a level sufficient to cover the
Corporation's costs for paying all of the estimated costs to
the Government of the expected default claims and other
obligations.
(C) The Corporation shall review fees for loan guaranties
periodically to ensure that the fees assessed on new loan
guarantees are at a level sufficient to cover the Corporation's
most recent estimates of its costs.
(8) Any loan guaranty provided by the Corporation shall be
conclusive evidence that--
(A) the guaranty has been properly obtained;
(B) the loan qualified for the guaranty; and
(C) but for fraud or material misrepresentation by
the holder of the guaranty, the guaranty is presumed to
be valid, legal, and enforceable.
(9) The Corporation may not make a loan or loan guaranty
unless the Corporation determines that there is a reasonable
assurance of repayment on the loan.
(10) The Corporation shall prescribe explicit standards for
use in periodically assessing the credit risk of new and
existing direct loans or guaranteed loans.
(11) The Corporation may not make loans or loan guaranties
except to the extent that budget authority to cover the costs
of the loans or guaranties is provided in advance in an
appropriations Act, as required by section 504 of the Federal
Credit Reform Act of 1990 (2 U.S.C. 661c).
SEC. 203. PAYMENT OF LOSSES.
(a) Payments for Defaults on Guaranteed Loans.--
(1) In general.--If the Corporation determines that the
holder of a loan guaranteed by the Corporation suffers a loss
as a result of a default by a borrower on the loan, the
Corporation shall pay to the holder the percent of the loss, as
specified in the guaranty contract after the holder of the loan
has made such further collection efforts and instituted such
enforcement proceedings as the Corporation may require.
(2) Subrogation.--Upon making a payment described in
paragraph (1), the Corporation shall ensure the Corporation
will be subrogated to all the rights of the recipient of the
payment.
(3) Recovery efforts.--The Corporation shall pursue
recovery from the borrower of the amount of any payment made
under paragraph (1) with respect to the loan.
(b) Limitation on Payments.--
(1) In general.--Except as provided by paragraph (2),
compensation for insurance, reinsurance, or a guaranty issued
under this title shall not exceed the dollar value of the
insurance, reinsurance, or guaranty, as of the date of its
issuance, made in the project with the approval of the
Corporation, plus interest, earnings, or profits actually
accrued on the insurance, reinsurance, or guaranty, to the
extent provided by such insurance, reinsurance, or guaranty.
(2) Exception.--
(A) In general.--The Corporation may provide that--
(i) appropriate adjustments in the insured
dollar value be made to reflect the replacement
cost of project assets; and
(ii) compensation for a claim of loss under
insurance of an equity investment under section
201(b) may be computed on the basis of the net
book value attributable to the equity
investment on the date of loss.
(3) Additional limitation.--
(A) In general.--Notwithstanding paragraph
(2)(A)(ii) and except as provided in subparagraph (B),
the Corporation shall limit the amount of direct
insurance and reinsurance issued under section 201 with
respect to a project so as to require that the insured
and its affiliates bear the risk of loss for at least
10 percent of the amount of the Corporation's exposure
to that insured and its affiliates in the project.
(B) Exception.--The limitation under subparagraph
(A) shall not apply to direct insurance or reinsurance
of loans provided by banks or other financial
institutions to unrelated parties.
(c) Actions by Attorney General.--The Attorney General shall take
such action as may be appropriate to enforce any right accruing to the
United States as a result of the issuance of any loan or guarantee
under this title.
(d) Rule of Construction.--Nothing in this section shall be
construed to preclude any forbearance for the benefit of a borrower
that may be agreed upon by the parties to a loan guaranteed by the
Corporation if budget authority for any resulting costs to the United
States Government (as defined in section 502 of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a)) is available.
SEC. 204. TERMINATION.
The authorities provided under this title terminate on the date
that is 7 years after the date of the enactment of this Act.
TITLE III--ADMINISTRATIVE AND GENERAL PROVISIONS
SEC. 301. OPERATIONS.
(a) Bilateral Agreements.--The Corporation may provide support
under title II in connection with projects in any country the
government of which has entered into an agreement with the United
States authorizing the Corporation to provide such support in that
country.
(b) Claims Settlement.--
(1) In general.--Claims arising as a result of support
provided under title II or under predecessor authority may be
settled, and disputes arising as a result thereof may be
arbitrated with the consent of the parties, on such terms and
conditions as the Corporation may determine.
(2) Settlements conclusive.--Payment made pursuant to any
settlement pursuant to paragraph (1), or as a result of an
arbitration award, shall be final and conclusive
notwithstanding any other provision of law.
(c) Presumption of Compliance.--Each contract executed by such
officer or officers as may be designated by the Board shall be
conclusively presumed to be issued in compliance with the requirements
of this Act.
(d) Electronic Payments and Documents.--The Corporation shall
implement policies to accept electronic documents and electronic
payments in all of its programs.
SEC. 302. CORPORATE POWERS.
(a) In General.--The Corporation--
(1) may adopt, alter, and use a seal, to include an
identifiable symbol of the United States;
(2) may make and perform such contracts, including no-cost
contracts (as defined by the Corporation), grants, and other
agreements notwithstanding division C of subtitle I of title
41, United States Code, with any person or government however
designated and wherever situated, as may be necessary for
carrying out the functions of the Corporation;
(3) may determine and prescribe the manner in which its
obligations shall be incurred and its expenses allowed and
paid, including expenses for representation;
(4) may lease, purchase, or otherwise acquire, improve, and
use such real property wherever situated, as may be necessary
for carrying out the functions of the Corporation;
(5) may accept cash gifts or donations of services or of
property (real, personal, or mixed), tangible or intangible,
for the purpose of carrying out the functions of the
Corporation;
(6) may use the United States mails in the same manner and
on the same conditions as the Executive departments (as defined
in section 101 of title 5, United States Code);
(7) may contract with individuals for personal services,
who shall not be considered Federal employees for any provision
of law administered by the Director of the Office of Personnel
Management;
(8) may hire or obtain passenger motor vehicles;
(9) may sue and be sued in its corporate name;
(10) may acquire, hold, or dispose of, upon such terms and
conditions as the Corporation may determine, any property,
real, personal, or mixed, tangible or intangible, or any
interest in such property, and with respect to lease of office
space for the Corporation's own use, the obligation of amounts
for such lease is limited to the current fiscal year for which
payments are due without regard to section 1341(a)(1)(B) of
title 31, United States Code;
(11) may indemnify directors, officers, employees, and
agents of the Corporation for liabilities and expenses incurred
in connection with their activities on behalf of the
Corporation;
(12) notwithstanding any other provision of law, may
represent itself or contract for representation in all legal
and arbitral proceedings;
(13) may purchase, discount, rediscount, sell, and
negotiate, with or without its endorsement or guaranty, and
guarantee notes, participation certificates, and other evidence
of indebtedness;
(14) may exercise any priority of the Government of the
United States in collecting debts from bankrupt, insolvent, or
decedents' estates;
(15) may collect, notwithstanding section 3711(g)(1) of
title 31, United States Code, or compromise any obligations
assigned to or held by the Corporation, including any legal or
equitable rights accruing to the Corporation;
(16) may manage assets described in section 3(9) of Public
Law 110-343 (12 U.S.C. 5202(9)) in a manner designed to
minimize cost to the Corporation, including establishing
vehicles that are authorized to purchase, hold, and sell assets
and issue obligations;
(17) may make arrangements with foreign governments
(including agencies, instrumentalities, or political
subdivisions of such governments) or with multilateral
organizations or institutions for sharing liabilities;
(18) may revolve funds of the Corporation through selling
direct investments of the Corporation to private investors upon
such terms and conditions as the Corporation may determine; and
(19) shall have such other powers as may be necessary and
incident to carrying out the functions of the Corporation.
(b) Treatment of Property.--Notwithstanding any other provision of
law relating to the acquisition, handling, or disposal of property by
the United States, the Corporation shall have the right in its
discretion to complete, recondition, reconstruct, renovate, repair,
maintain, operate, or sell any property acquired by the Corporation
pursuant to the provisions of this Act.
SEC. 303. MAXIMUM CONTINGENT LIABILITY.
(a) In General.--The maximum contingent liability of the
Corporation outstanding at any one time shall not exceed in the
aggregate the amount specified in subsection (b).
(b) Amount Specified.--
(1) Initial 5-year period.--The amount specified in this
subsection for the 5-year period beginning on the date of the
enactment of this Act, is $60,000,000,000.
(2) Subsequent 5-year periods.--Not later than 5 years
after the date of the enactment of this Act, and every 5 years
thereafter, the amount specified in paragraph (1) shall be
adjusted to reflect the percentage of the increase (if any) in
the average of the Consumer Price Index during the preceding 5-
year period.
(3) Consumer price index defined.--In this subsection, the
term ``Consumer Price Index'' means the most recent Consumer
Price Index for All Urban Consumers published by the Bureau of
Labor Statistics of the Department of Labor.
SEC. 304. CORPORATE FUNDS.
(a) Corporate Capital Account.--
(1) Establishment.--There is established in the Treasury of
the United States a revolving fund to be known as the
``Corporate Capital Account'', consisting of such funds as--
(A) are available to discharge liabilities under
predecessor authorities; and
(B) are made available to the Corporation pursuant
to subsections (d), (e), and (f), or otherwise
available pursuant to this section.
(2) Use of funds.--Amounts in the Corporate Capital Account
shall be available for discharge of liabilities of the
Corporation, until such time as all such liabilities have been
discharged or have expired or until all of the amounts in the
Account have been expended in accordance with the provisions of
this section.
(b) Transfer of Previous Fees and Revenue.--There is hereby
authorized to be transferred to the Corporation at its call, for the
purposes specified in subsection (g), all fees and other revenues
collected by the Overseas Private Investment Corporation pursuant to
the reorganization plan submitted by the President under section 602.
(c) Full Faith and Credit.--All support provided pursuant to
predecessor authorities or title II shall continue to constitute
obligations of the United States, and the full faith and credit of the
United States is hereby pledged for the full payment and performance of
such obligations.
(d) Authorization of Appropriations.--There are authorized to be
appropriated to the Corporation, to remain available until expended,
such amounts as may be necessary from time to time to replenish or
increase the Corporate Capital Account.
(e) Issuance of Obligations.--
(1) In general.--In order to discharge liabilities of the
Corporation, the Corporation may issue from time to time for
purchase by the Secretary of the Treasury notes, debentures,
bonds, or other obligations of the Corporation.
(2) Limitation.--The aggregate amount of obligations
outstanding under paragraph (1) at any one time shall not
exceed $1,000,000,000.
(3) Repayment.--Any obligation issued under paragraph (1)
shall be repaid to the Treasury of the United States within one
year after the date of issue of the obligation.
(4) Interest rate.--Any obligation issued under paragraph
(1) shall bear interest at a rate determined by the Secretary,
taking into consideration the current average market yield on
outstanding marketable obligations of the United States of
comparable maturities during the month preceding the issuance
of any obligation authorized by this subsection.
(5) Purchase.--The Secretary shall purchase any obligation
of the Corporation issued under paragraph (1), and for such
purchase the Secretary may use as a public debt transaction the
proceeds of the sale of any securities issued under chapter 31
of title 31, United States Code. The purpose for which
securities may be issued under such chapter shall include any
such purchase.
(6) Funding.--There are hereby authorized to be
appropriated to the Secretary for fiscal year 2018 and each
fiscal year thereafter such sums as may be necessary to carry
out this subsection.
(f) Fees.--
(1) In general.--Fees may be charged for providing services
and for transaction costs incurred by the Corporation in
amounts to be determined by the Corporation.
(2) Use of fees.--All fees under paragraph (1) paid for
transaction costs and other costs associated with services
provided shall be available for obligation for the purposes for
which such fees were collected.
(g) Income and Revenue in General.--In order to carry out the
purposes of the Corporation, all funds, fees, revenues, and income
transferred to or earned by the Corporation, from whatever source
derived, shall be held by the Corporation and shall be available to
carry out the purposes of the Corporation, including--
(1) payment of all expenses of the Corporation;
(2) transfers and additions to the Corporate Capital
Account and such other funds or reserves as the Corporation may
establish, at such time and in such amounts as the Board may
determine;
(3) payment of dividends on capital stock, which shall
consist of and be paid from net earnings of the Corporation
after payments, transfers, and additions under paragraphs (1)
and (2); and
(4) transfer of such sums as may be necessary from the
Corporate Capital Account for costs (as defined in section 502
of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) of
providing support under title II, including the costs of
modifying such support.
(h) Transaction Costs.--Transaction costs incurred by the
Corporation, including such costs relating to loan obligations or loan
guarantee commitments covered by the provisions of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661 et seq.), shall be held in and paid
out of the Corporate Capital Account.
SEC. 305. COORDINATION WITH MILLENNIUM CHALLENGE CORPORATION ON
CONSTRAINTS ANALYSIS.
It is the sense of Congress that the Corporation should use the
constraints analysis and other relevant data of the Millennium
Challenge Corporation to better inform the decisions of the Corporation
with respect to providing support under title II.
TITLE IV--MONITORING, EVALUATION, AND REPORTING
SEC. 401. ESTABLISHMENT OF RISK AND AUDIT COMMITTEES.
(a) In General.--To manage risks such as key strategic,
reputational, regulatory, operational, and financial risks the
Corporation shall establish a risk committee and an audit committee.
(b) Duties and Responsibilities.--Subject to the direction of the
Board, the risk committee established under subsection (a) shall have
the responsibility of--
(1) carrying out independent oversight of the Corporation;
(2) reviewing and providing guidance on the risk governance
structure of the Corporation; and
(3) developing policies for enterprise risk management,
monitoring, and management of strategic, reputational,
regulatory, operational, and financial risks.
SEC. 402. PERFORMANCE MEASURES.
(a) In General.--The Corporation shall develop a performance
measurement system to evaluate and monitor projects supported by the
Corporation under title II and to guide future projects of the
Corporation.
(b) Considerations.--In developing the performance measurement
system required by subsection (a), the Corporation shall--
(1) develop a successor for the development impact
measurement system used by the Overseas Private Investment
Corporation before the date of the enactment of this Act;
(2) develop a mechanism for ensuring that support provided
by the Corporation under title II is in addition to private
investment; and
(3) develop standards for, and a method for ensuring,
appropriate financial performance of the Corporation's
portfolio.
(c) Public Availability of Certain Information.--The Corporation
shall regularly make available to the public information about support
provided by the Corporation under title II and performance metrics
about such support on a country-by-country basis.
(d) Consultations.--In developing the performance measurement
system required by subsection (a), the Corporation shall consult with
stakeholders engaged in sustainable economic growth and development
outside the United States, including private sector entities and
nongovernmental and civil society organizations.
SEC. 403. ANNUAL REPORT.
(a) In General.--After the end of each fiscal year, the Corporation
shall submit to the appropriate congressional committees a complete and
detailed report of its operations during that fiscal year, including an
assessment of--
(1) the economic and social development impact and benefits
of projects supported by the Corporation under title II; and
(2) the extent to which the operations of the Corporation
complement or are compatible with the development assistance
programs of the United States and qualifying sovereign
entities.
(b) Elements.--Each annual report required by subsection (a) shall
include projections of the effects of each project supported by the
Corporation under title II, including--
(1) reviews and analysis of--
(A) the desired development outcomes for each
project and whether or not the project is meeting the
associated metrics, goals, and development objectives
in the years following the conclusion of the project;
and
(B) the effect of the Corporation's support for the
project on access to capital, specifically whether the
project is addressing identifiable market gaps or
inefficiencies and what impact, if any, such support
will have on access to credit for private sector
entities in the country in which the project is carried
out;
(2) an explanation of any partnership arrangement or
cooperation with a qualifying sovereign entity in support of
each project;
(3) projections of--
(A) each project's development outcome, and whether
or not support for the project is meeting the
associated performance measures, both during the start-
up phase and over the duration of the project; and
(B) the amount of private sector assets brought to
bear relative to the amount of support provided by the
Corporation and any other public sector support
associated with the project; and
(4) an assessment of the extent to which lessons learned
from the monitoring and evaluation activities of the
Corporation, and from annual reports from previous years
compiled by the Corporation, have been applied to projects.
SEC. 404. PUBLICLY AVAILABLE PROJECT INFORMATION.
The Corporation shall--
(1) maintain a user-friendly, publicly available, machine-
readable database with detailed country-level information,
including a description of the support provided by the
Corporation under title II; and
(2) include a clear link to information about each project
supported by the Corporation under title II on the internet
website of the Department of State, ``ForeignAssistance.gov'',
or a successor website or other online publication.
SEC. 405. AUDITS AND FINANCIAL STATEMENTS OF THE CORPORATION.
(a) Audits.--Subject to subsection (f), an independent certified
public accountant shall perform a financial and compliance audit of the
financial statements of the Corporation annually, in accordance with
generally accepted government auditing standards for a financial and
compliance audit, as issued by the Comptroller General of the United
States.
(b) Reports on Audits.--The independent certified public accountant
who conducts an audit under subsection (a) shall report the results of
the audit to the Executive Director of the Corporation and the
appropriate congressional committees.
(c) Presentation.--The financial statements of the Corporation and
the report required by subsection (b) shall be presented in accordance
with generally accepted accounting principles.
(d) Reports to Congress.--Not later than 195 days after the end of
the last fiscal year covered by an audit conducted under subsection
(a), the Corporation shall submit to the appropriate congressional
committees a report that includes--
(1) the report required by subsection (b) with respect to
the audit; and
(2) the financial statements of the Corporation.
(e) Review and Report by the Government Accountability Office.--The
Comptroller General may review an audit conducted under subsection (a)
and the report to the appropriate congressional committees required by
subsection (d) in the manner and at such times as the Comptroller
General considers necessary.
(f) Alternative Audits by Government Accountability Office.--
Instead of an audit conducted under subsection (a) by a certified
public accountant, the Comptroller General shall, if the Comptroller
General considers it necessary or upon the request of Congress, audit
the financial statements of the Corporation in the manner provided
under subsection (a).
(g) Availability of Information.--All books, accounts, financial
records, reports, files, workpapers, and property belonging to or in
use by the Corporation or the accountant who conducts an audit under
subsection (a) that are necessary for purposes of conducing the audit,
shall be made available to the Comptroller General and such employees
as the Comptroller General considers appropriate.
SEC. 406. ENGAGEMENT WITH INVESTORS.
(a) In General.--The Corporation shall, in cooperation with the
Administrator of the United States Agency for International
Development--
(1) develop a strategic relationship with private sector
entities focused at the nexus of business opportunities and
development priorities;
(2) engage such entities and reduce business risks
primarily through direct transaction support and facilitating
investment partnerships;
(3) develop and support tools, approaches, and
intermediaries that can mobilize private finance at scale in
the developing world;
(4) pursue projects of all sizes, especially those that are
small but designed for work in the most underdeveloped areas,
including countries with chronic suffering as a result of
extreme poverty, fragile institutions, or a history of
violence; and
(5) pursue projects consistent with the stated goals of the
Department of State and the Strategic Plan and the Mission
Country Development Cooperation Strategies of the United States
Agency for International Development.
(b) Assistance.--To achieve the goals described in subsection (a),
the Corporation shall--
(1) develop risk mitigation tools;
(2) provide transaction structuring support for blended
finance models;
(3) support intermediaries linking capital supply and
demand;
(4) coordinate with other Federal agencies to support or
accelerate transactions;
(5) convene financial, donor, and public sector partners
around opportunities for private finance within development
priorities;
(6) offer strategic planning and programming assistance to
catalyze investment into priority sectors;
(7) provide transaction structuring support;
(8) deliver training and knowledge management tools for
engaging private investors;
(9) partner with private sector entities that provide
access to capital and expertise; and
(10) identify and screen new investment partners.
TITLE V--CONDITIONS, RESTRICTIONS, AND PROHIBITIONS
SEC. 501. LIMITATIONS AND PREFERENCES.
(a) Limitation on Support for Single Entity.--No entity receiving
support from the Corporation under title II may receive more than an
amount equal to 5 percent of the Corporation's maximum contingent
liability authorized under section 303.
(b) Preference for Support of Investment by United States
Investors.--
(1) In general.--The Corporation shall give preferential
consideration to projects sponsored by or involving private
sector entities that are United States persons.
(2) United states person defined.--In this subsection, the
term ``United States person'' means--
(A) a United States citizen; or
(B) an entity significantly beneficially owned by
individuals described in subparagraph (A).
(c) Preference for Provision of Support in Countries in Compliance
With International Trade Obligations.--
(1) Consultations with united states trade
representative.--Not less frequently than annually, the
Corporation shall consult with the United States Trade
Representative with respect to the status of countries eligible
to receive support from the Corporation under title II and the
compliance of those countries with their international trade
obligations.
(2) Preferential consideration.--The Corporation shall give
preferential consideration to providing support under title II
for projects in countries in compliance with or making
substantial progress coming into compliance with their
international trade obligations.
(d) Worker Rights.--The Corporation should support projects under
title II in countries that are taking steps to adopt and implement laws
that extend internationally recognized worker rights (as defined in
section 507 of the Trade Act of 1974 (19 U.S.C. 2467)) to workers in
that country.
(e) Environmental Impact.--The Board shall not vote in favor of any
project proposed to be supported by the Corporation under title II that
is likely to have significant adverse environmental impacts that are
sensitive, diverse, or unprecedented, unless--
(1) before the date of the vote, an environmental impact
assessment or initial environmental audit, analyzing the
environmental impacts of the proposed project and of
alternatives to the proposed project, is completed; and
(2) such assessment or audit has been made available to the
public of the United States, locally affected groups in the
country in which the project will be carried out, and
nongovernmental organizations in that country.
SEC. 502. ADDITIONALITY AND AVOIDANCE OF MARKET DISTORTION.
(a) In General.--Before the Corporation provides support for a
project under title II, the Corporation shall ensure that private
sector entities are afforded an opportunity to support the project
instead of the project receiving support from the Corporation.
(b) Safeguards, Policies, and Guidelines.--The Corporation shall
develop appropriate safeguards, policies, and guidelines to ensure that
support provided by the Corporation under title II--
(1) supplements and encourages, but does not compete with,
private sector support; and
(2) operates according to internationally recognized best
practices and standards with respect to ensuring the avoidance
of market distorting government subsidies and the crowding out
of private sector lending.
SEC. 503. PROHIBITION ON SUPPORT IN SANCTIONED COUNTRIES AND WITH
SANCTIONED PERSONS.
(a) In General.--The Corporation is prohibited from providing
support under title II in a country the government of which the
Secretary of State has determined has repeatedly provided support for
acts of international terrorism for purposes of--
(1) section 6(j)(1)(A) of the Export Administration Act of
1979 (50 U.S.C. 4605(j)(1)(A)) (as continued in effect pursuant
to the International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.));
(2) section 620A(a) of the Foreign Assistance Act of 1961
(22 U.S.C. 2371(a));
(3) section 40(d) of the Arms Export Control Act (22 U.S.C.
2780(d)); or
(4) any other provision of law.
(b) Prohibition on Support of Sanctioned Persons.--The Corporation
is prohibited from supporting a project under title II that benefits
any entity subject to sanctions imposed by the United States.
SEC. 504. PENALTIES FOR MISREPRESENTATION, FRAUD, AND BRIBERY.
Subsections (g), (l), and (n) of section 237 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2197) shall apply with respect to the
Corporation to the same extent and in the same manner as such
subsections applied with respect to the Overseas Private Investment
Corporation on the day before the date of the enactment of this Act.
SEC. 505. MARKET DISPLACEMENT BY STATE-OWNED ENTERPRISES AND
MONOPOLIES.
(a) Policies With Respect to State-Owned Enterprises.--The
Corporation shall develop appropriate policies and guidelines to ensure
that support provided under title II to a state-owned enterprise,
sovereign wealth fund, or a parastatal entity engaged in commercial
activities or to a project in which such an entity or fund is
participating is provided under appropriate principles of competitive
neutrality.
(b) Prohibition on Support to Monopolies.--The Corporation may not
provide support under title II to private sector entities engaged in
monopolistic practices.
(c) State-Owned Enterprise Defined.--
(1) In general.--In this section, the term ``state-owned
enterprise'' means any enterprise established for a commercial
or business purpose that is directly owned or controlled by one
or more governments, including any agency, instrumentality,
subdivision, or other unit of government at any level of
jurisdiction.
(2) Control; owned.--For purposes of paragraph (1):
(A) Control.--The term ``control'', with respect to
an enterprise, means the power by any means to control
the enterprise regardless of--
(i) the level of ownership; and
(ii) whether or not the power is exercised.
(B) Owned.--The term ``owned'', with respect to an
enterprise, means a majority or controlling interest,
whether by value or voting interest, of the shares of
that enterprise, including through fiduciaries, agents,
or other means.
TITLE VI--TRANSITIONAL PROVISIONS
SEC. 601. DEFINITIONS.
In this title:
(1) Agency.--The term ``agency'' includes any entity,
organizational unit, program, or function.
(2) Transition period.--The term ``transition period''
means the period--
(A) beginning on the date of the enactment of this
Act; and
(B) ending on the effective date of the
reorganization plan required by section 602(d).
SEC. 602. REORGANIZATION PLAN.
(a) Submission of Plan.--Not later than 60 days after the date of
the enactment of this Act, the President shall transmit to the
appropriate congressional committees a reorganization plan regarding
the following:
(1) The transfer of agencies, personnel, assets, and
obligations to the Corporation pursuant to this title.
(2) Any consolidation, reorganization, or streamlining of
agencies transferred to the Corporation pursuant to this title.
(b) Plan Elements.--The plan transmitted under subsection (a) shall
contain, consistent with this Act, such elements as the President deems
appropriate, including the following:
(1) Identification of any functions of agencies transferred
to the Corporation pursuant to this title that will not be
transferred to the Corporation under the plan.
(2) Specification of the steps to be taken to organize the
Corporation, including the delegation or assignment of
functions transferred to the Corporation among officers of the
Corporation in order to permit the Corporation to carry out the
functions transferred under the plan.
(3) Specification of the funds available to each agency
that will be transferred to the Corporation as a result of
transfers under the plan.
(4) Specification of the proposed allocations within the
Corporation of unexpended funds transferred in connection with
transfers under the plan.
(5) Specification of any proposed disposition of property,
facilities, contracts, records, and other assets and
obligations of agencies transferred under the plan.
(c) Modification of Plan.--The President may, on the basis of
consultations with the appropriate congressional committees, modify or
revise any part of the plan until that part of the plan becomes
effective in accordance with subsection (d).
(d) Effective Date.--
(1) In general.--The reorganization plan described in this
section, including any modifications or revisions of the plan
under subsection (c), shall become effective for an agency on
the date specified in the plan (or the plan as modified
pursuant to subsection (c)), except that such date may not be
earlier than 90 days after the date the President has
transmitted the reorganization plan to the appropriate
congressional committees pursuant to subsection (a).
(2) Statutory construction.--Nothing in this subsection may
be construed to require the transfer of functions, personnel,
records, balances of appropriations, or other assets of an
agency on a single date.
SEC. 603. TRANSFER OF FUNCTIONS.
(a) In General.--Effective at the end of the transition period,
there shall be transferred to the Corporation the functions, personnel,
assets, and liabilities of--
(1) the Overseas Private Investment Corporation, as in
existence on the day before the date of the enactment of this
Act; and
(2) the following elements of the United States Agency for
International Development:
(A) The Development Credit Authority.
(B) The enterprise funds.
(C) The Office of Private Capital and
Microenterprise.
(b) Bilateral Agreements.--Any bilateral agreement of the United
States in effect on the date of the enactment of this Act that serves
as the basis for programs of the Overseas Private Investment
Corporation shall be considered as satisfying the requirements of
section 301(a).
(c) Transition.--During the transition period, the agencies
specified in subsection (a) shall--
(1) continue to administer the assets and obligations of
those agencies; and
(2) carry out such programs and activities authorized under
this Act as may be determined by the President.
SEC. 604. TERMINATION OF OVERSEAS PRIVATE INVESTMENT CORPORATION AND
OTHER SUPERCEDED AUTHORITIES.
Effective at the end of the transition period--
(1) the Overseas Private Investment Corporation is
terminated; and
(2) the following provisions are repealed:
(A) Title IV of chapter 2 of part I of the Foreign
Assistance Act of 1961 (22 U.S.C. 2191 et seq.) (other
than subsections (g), (l), and (n) of section 237 of
that Act).
(B) Subtitle B of title VI of that chapter (22
U.S.C. 2212).
SEC. 605. TRANSITIONAL AUTHORITIES.
(a) Provision of Assistance by Officials.--Until the transfer of an
agency to the Corporation under section 603, any official having
authority over or functions relating to the agency immediately before
the date of the enactment of this Act shall provide to the Corporation
such assistance, including the use of personnel and assets, as the
Corporation may request in preparing for the transfer and integration
of the agency into the Corporation.
(b) Services and Personnel.--During the transition period, upon the
request of the Corporation, the head of any executive agency may, on a
reimbursable basis, provide services or detail personnel to assist with
the transition.
(c) Acting Officials.--
(1) In general.--During the transition period, pending the
advice and consent of the Senate to the appointment of an
officer required by this Act to be appointed by and with such
advice and consent, the President may designate any officer
whose appointment was required to be made by and with such
advice and consent and who was such an officer immediately
before the date of the enactment of this Act (and who continues
in office) or immediately before such designation, to act in
such office until the same is filled as provided in this Act.
While so acting, such officers shall receive compensation at
the higher of--
(A) the rates provided by this Act for the
respective offices in which they act; or
(B) the rates provided for the offices held at the
time of designation.
(2) Rule of construction.--Nothing in this Act shall be
construed to require the advice and consent of the Senate to
the appointment by the President to a position in the
Corporation of any officer whose agency is transferred to the
Corporation pursuant to this title and whose duties following
such transfer are germane to those performed before such
transfer.
(d) Transfer of Personnel, Assets, Obligations, and Functions.--
Upon the transfer of an agency to the Corporation under section 603--
(1) the personnel, assets, and obligations held by or
available in connection with the agency shall be transferred to
the Corporation for appropriate allocation, subject to the
approval of the Director of the Office of Management and Budget
and in accordance with section 1531(a)(2) of title 31, United
States Code; and
(2) the Corporation shall have all functions--
(A) relating to the agency that any other official
could by law exercise in relation to the agency
immediately before such transfer; and
(B) vested in the Corporation by this Act or other
law.
SEC. 606. SAVINGS PROVISIONS.
(a) Completed Administrative Actions.--
(1) In general.--Completed administrative actions of an
agency shall not be affected by the enactment of this Act or
the transfer of such agency to the Corporation under section
603, but shall continue in effect according to their terms
until amended, modified, superseded, terminated, set aside, or
revoked in accordance with law by an officer of the United
States or a court of competent jurisdiction, or by operation of
law.
(2) Completed administrative action defined.--In this
subsection, the term ``completed administrative action''
includes orders, determinations, rules, regulations, personnel
actions, permits, agreements, grants, contracts, certificates,
licenses, registrations, and privileges.
(b) Pending Proceedings.--
(1) In general.--Pending proceedings in an agency,
including notices of proposed rulemaking, and applications for
licenses, permits, certificates, grants, and financial
assistance, shall continue notwithstanding the enactment of
this Act or the transfer of the agency to the Corporation,
unless discontinued or modified under the same terms and
conditions and to the same extent that such discontinuance
could have occurred if such enactment or transfer had not
occurred.
(2) Orders.--Orders issued in proceedings described in
paragraph (1), and appeals therefrom, and payments made
pursuant to such orders, shall issue in the same manner and on
the same terms as if this Act had not been enacted or the
agency had not been transferred, and any such orders shall
continue in effect until amended, modified, superseded,
terminated, set aside, or revoked by an officer of the United
States or a court of competent jurisdiction, or by operation of
law.
(c) Pending Civil Actions.--Pending civil actions shall continue
notwithstanding the enactment of this Act or the transfer of an agency
to the Corporation, and in such civil actions, proceedings shall be
had, appeals taken, and judgments rendered and enforced in the same
manner and with the same effect as if such enactment or transfer had
not occurred.
(d) References.--References relating to an agency that is
transferred to the Corporation under section 603 in statutes, Executive
orders, rules, regulations, directives, or delegations of authority
that precede such transfer or the date of the enactment of this Act
shall be deemed to refer, as appropriate, to the Corporation, to its
officers, employees, or agents, or to its corresponding organizational
units or functions. Statutory reporting requirements that applied in
relation to such an agency immediately before the effective date of
this Act shall continue to apply following such transfer if they refer
to the agency by name.
(e) Employment Provisions.--
(1) Regulations.--The Corporation may, in regulations
prescribed jointly with the Director of the Office of Personnel
Management, adopt the rules, procedures, terms, and conditions,
established by statute, rule, or regulation before the date of
the enactment of this Act, relating to employment in any agency
transferred to the Corporation under section 603.
(2) Effect of transfer on conditions of employment.--Except
as otherwise provided in this Act, or under authority granted
by this Act, the transfer pursuant to this title of personnel
shall not alter the terms and conditions of employment,
including compensation, of any employee so transferred.
(f) Statutory Reporting Requirements.--Any statutory reporting
requirement that applied to an agency transferred to the Corporation
under this title immediately before the date of the enactment of this
Act shall continue to apply following that transfer if the statutory
requirement refers to the agency by name.
SEC. 607. OTHER TERMINATIONS.
Except as otherwise provided in this Act, whenever all the
functions vested by law in any agency have been transferred pursuant to
this title, each position and office the incumbent of which was
authorized to receive compensation at the rates prescribed for an
office or position at level II, III, IV, or V of the Executive Schedule
under subchapter II of chapter 53 of title 5, United States Code, shall
terminate.
SEC. 608. INCIDENTAL TRANSFERS.
The Director of the Office of Management and Budget, in
consultation with the Corporation, is authorized and directed to make
such additional incidental dispositions of personnel, assets, and
liabilities held, used, arising from, available, or to be made
available, in connection with the functions transferred by this title,
as the Director may determine necessary to accomplish the purposes of
this Act.
SEC. 609. REFERENCE.
With respect to any function transferred under this title
(including under a reorganization plan under section 602) and exercised
on or after the date of the enactment of this Act, reference in any
other Federal law to any department, commission, or agency or any
officer or office the functions of which are so transferred shall be
deemed to refer to the Corporation or official or component of the
Corporation to which that function is so transferred.
SEC. 610. CONFORMING AMENDMENTS.
(a) Exempt Programs.--Section 255(g) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 905(g)) is amended by
striking ``Overseas Private Investment Corporation, Noncredit Account
(71-4184-0-3-151).'' and inserting ``United States International
Development Finance Corporation.''.
(b) Executive Schedule.--Title 5, United States Code, is amended--
(1) in section 5314, by striking ``President, Overseas
Private Investment Corporation.'';
(2) in section 5315, by striking ``Executive Vice
President, Overseas Private Investment Corporation.''; and
(3) in section 5316, by striking ``Vice Presidents,
Overseas Private Investment Corporation (3).''.
(c) Office of International Trade of the Small Business
Administration.--Section 22 of the Small Business Act (15 U.S.C. 649)
is amended--
(1) in subsection (b), in the matter preceding paragraph
(1), by striking ``the President of the Overseas Private
Investment Corporation, Director'' and inserting ``the Board of
Directors of the United States International Development
Finance Corporation, the Director''; and
(2) by striking ``Overseas Private Investment Corporation''
each place it appears and inserting ``United States
International Development Finance Corporation''.
(d) United States and Foreign Commercial Service.--Section 2301 of
the Export Enhancement Act of 1988 (15 U.S.C. 4721) is amended by
striking ``Overseas Private Investment Corporation'' each place it
appears and inserting ``United States International Development Finance
Corporation''.
(e) Trade Promotion Coordinating Committee.--Section 2312(d)(1)(K)
of the Export Enhancement Act of 1988 (15 U.S.C. 4727(d)(1)(K)) is
amended by striking ``Overseas Private Investment Corporation'' and
inserting ``United States International Development Finance
Corporation''.
(f) Interagency Trade Data Advisory Committee.--Section 5402(b) of
the Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 4902(b))
is amended by striking ``the President of the Overseas Private
Investment Corporation'' and inserting ``the Chief Executive Officer of
the United States International Development Finance Corporation''.
(g) Misuse of Names of Federal Agencies.--Section 709 of title 18,
United States Code, is amended by striking ```Overseas Private
Investment', `Overseas Private Investment Corporation', or `OPIC',''
and inserting ```United States International Development Finance
Corporation' or `DFC'''.
(h) Engagement on Currency Exchange Rate and Economic Policies.--
Section 701(c)(1)(A) of the Trade Facilitation and Trade Enforcement
Act of 2015 (19 U.S.C. 4421(c)(1)(A)) is amended by striking ``Overseas
Private Investment Corporation'' and inserting ``United States
International Development Finance Corporation''.
(i) Internships With Institute for International Public Policy.--
Section 625 of the Higher Education Act of 1965 (20 U.S.C. 1131c(a)) is
amended by striking ``Overseas Private Investment Corporation'' and
inserting ``United States International Development Finance
Corporation''.
(j) Foreign Assistance Act of 1961.--The Foreign Assistance Act of
1961 (22 U.S.C. 2151 et seq.) is amended--
(1) in section 449B(b)(2) (22 U.S.C. 2296b(b)(2)), by
striking ``Overseas Private Investment Corporation'' and
inserting ``United States International Development Finance
Corporation''; and
(2) in section 481(e)(4)(A) (22 U.S.C. 2291(e)(4)(A)), in
the matter preceding clause (i), by striking ``(including
programs under title IV of chapter 2, relating to the Overseas
Private Investment Corporation)'' and inserting ``(and any
support under title II of the Better Utilization of Investments
Leading to Development Act of 2018, relating to the United
States International Development Finance Corporation)''.
(k) Electrify Africa Act of 2015.--Sections 5 and 7 of the
Electrify Africa Act of 2015 (Public Law 114-121; 22 U.S.C. 2293 note)
are amended by striking ``Overseas Private Investment Corporation''
each place it appears and inserting ``United States International
Development Finance Corporation''.
(l) Foreign Aid Transparency and Accountability Act of 2016.--
Section 2(3) of the Foreign Aid Transparency and Accountability Act of
2016 (Public Law 114-191; 22 U.S.C. 2394c note) is amended by striking
subparagraph (A) and inserting the following:
``(A) title II of the Better Utilization of
Investments Leading to Development Act of 2018;''.
(m) Support for East European Democracy (SEED) Program.--Section
2(c) of the Support for East European Democracy (SEED) Act of 1989 (22
U.S.C. 5401(c)) is amended by striking paragraph (12) and inserting the
following:
``(12) United states international development finance
corporation.--Programs of the United States International
Development Finance Corporation.''.
(n) Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of
1996.--Section 202(b)(2)(B)(iv) of the Cuban Liberty and Democratic
Solidarity (LIBERTAD) Act of 1996 (22 U.S.C. 6062(b)(2)(B)(iv)) is
amended by striking ``Overseas Private Investment Corporation'' and
inserting ``United States International Development Finance
Corporation''.
(o) International Religious Freedom Act of 1998.--Section
405(a)(10) of the International Religious Freedom Act of 1998 (22
U.S.C. 6445(a)(10)) is amended by striking ``Overseas Private
Investment Corporation'' and inserting ``United States International
Development Finance Corporation''.
(p) Trafficking Victims Protection Act of 2000.--Section 103(8) of
the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7102(8)) is
amended--
(1) in clause (vii), by striking the semicolon and
inserting ``; and''; and
(2) by striking clause (viii).
(q) Technology Deployment in Developing Countries.--Section 732(b)
of the Global Environmental Protection Assistance Act of 1989 (22
U.S.C. 7902(b)) is amended by striking ``Overseas Private Investment
Corporation'' and inserting ``United States International Development
Finance Corporation''.
(r) Expanded Nonmilitary Assistance for Ukraine.--Section 7(c)(3)
of the Ukraine Freedom Support Act of 2014 (22 U.S.C. 8926(c)(3)) is
amended--
(1) in the matter preceding subparagraph (A), by striking
``Overseas Private Investment Corporation'' and inserting
``United States International Development Finance
Corporation''; and
(2) in subparagraph (B), by striking ``by eligible
investors (as defined in section 238 of the Foreign Assistance
Act of 1961 (22 U.S.C. 2198))''.
(s) Global Food Security Act of 2016.--Section 4(7) of the Global
Food Security Act of 2016 (22 U.S.C. 9303(7)) is amended by striking
``Overseas Private Investment Corporation'' and inserting ``United
States International Development Finance Corporation''.
(t) Sense of Congress on European and Eurasian Energy Security.--
Section 257(c)(2)(B) of the Countering Russian Influence in Europe and
Eurasia Act of 2017 (22 U.S.C. 9546(c)(2)(B)) is amended by striking
``Overseas Private Investment Corporation'' and inserting ``United
States International Development Finance Corporation''.
(u) Wholly Owned Government Corporation.--Section 9101(3) of title
31, United States Code, is amended by striking ``Overseas Private
Investment Corporation'' and inserting ``United States International
Development Finance Corporation''.
(v) Energy Independence and Security Act of 2007.--Title IX of the
Energy Independence and Security Act of 2007 (42 U.S.C. 17321 et seq.)
is amended--
(1) in section 914 (42 U.S.C. 17334)--
(A) in the section heading, by striking ``overseas
private investment corporation'' and inserting ``united
states international development finance corporation'';
(B) in subsection (a), in the matter preceding
paragraph (1), by striking ``Overseas Private
Investment Corporation'' and inserting ``United States
International Development Finance Corporation''; and
(C) in subsection (b), in the matter preceding
paragraph (1), by striking ``Overseas Private
Investment Corporation shall include in its annual
report required under section 240A of the Foreign
Assistance Act of 1961 (22 U.S.C. 2200a)'' and
inserting ``United States International Development
Finance Corporation shall include in its annual report
required under section 403 of the Better Utilization of
Investments Leading to Development Act of 2018''; and
(2) in section 916(a)(2)(I) (42 U.S.C. 17336(a)(2)(I)), by
striking ``Overseas Private Investment Corporation:'' and
inserting ``United States International Development Finance
Corporation;''.
(w) Effective Date.--The amendments made by this section shall take
effect at the end of the transition period.
<all>