,,ii ,calendar ,no4 #bge #aadth ,,congress #ast ,session ,s4 #bahc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,october #ai1 #bjae ,mr4 ,kirk 7for himself1 ,ms4 ,heitkamp1 ,mr4 ,graham1 ,mr4 ,manchin1 ,mr4 ,blunt1 ,mr4 ,donnelly1 ,ms4 ,ayotte1 and ,mr4 ,warner7 introduced the following bill2 which was read the first time ,october #bj1 #bjae,read the second time and placed on the calendar ,a ,,bill ,to reauthorize and reform the ,export-,import ,bank of the ,united ,states1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,export-,import ,bank ,reform and ,reauthorization ,act of #bjae4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,,title ,i--,taxpayer protection provisions and increased accountability ,sec4 #aja4 ,reduction in authorized amount of outstanding loans1 guarantees1 and insurance4 ,sec4 #ajb4 ,increase in loss reserves4 ,sec4 #ajc4 ,review of fraud controls4 ,sec4 #ajd4 ,office of ,ethics4 ,sec4 #aje4 ,chief ,risk ,officer4 ,sec4 #ajf4 ,risk ,management ,committee4 ,sec4 #ajg4 ,independent audit of bank portfolio4 ,sec4 #ajh4 ,pilot program for reinsurance4 ,,title ,,ii--,promotion of small business exports ,sec4 #bja4 ,increase in small business lending requirements4 ,sec4 #bjb4 ,report on programs for small and medium-sized businesses4 ,,title ,,iii--,modernization of operations ,sec4 #cja4 ,electronic payments and documents4 ,sec4 #cjb4 ,reauthorization of information technology updating4 ,,title ,,iv--,general provisions ,sec4 #dja4 ,extension of authority4 ,sec4 #djb4 ,certain updated loan terms and amounts4 ,,title ,v--,other matters ,sec4 #eja4 ,prohibition on discrimination based on industry4 ,sec4 #ejb4 ,negotiations to end export credit financing4 ,sec4 #ejc4 ,study of financing for information and communications technology systems4 ,i ,taxpayer protection provisions and increased accountability #aja4 ,reduction in authorized amount of outstanding loans1 guarantees1 and insurance ,section #f7;a7 of the ,export-,import ,bank ,act of #aide 7#ab ,u4,s4,c4 #fce;e7a77 is amended-- 7#a7 by redesignating paragraph 7#c7 as paragraph 7#d72 and 7#b7 by striking paragraph 7#b7 and inserting the following3 7#b7 ,applicable amount defined ,in this subsection1 the term applicable amount1 for each of fiscal years #bjae through #bjai1 means #ace1jjj1jjj1jjj4 7#c7 ,freezing of lending cap if default rate is #b percent or more ,if the rate calculated under section #h7;g77#a7 is #b percent or more for a quarter1 the ,bank may not exceed the amount of loans1 guarantees1 and insurance outstanding on the last day of that quarter until the rate calculated under section #h7;g77#a7 is less than #b percent4 4 #ajb4 ,increase in loss reserves 7a7 ,in general ,section #f of the ,export-,import ,bank ,act of #aide 7#ab ,u4,s4,c4 #fce;e7 is amended-- 7#a7 by redesignating subsection 7b7 as subsection 7c72 and 7#b7 by inserting after subsection 7a7 the following3 7b7 ,reserve requirement ,the ,bank shall build to and hold in reserve1 to protect against future losses1 an amount that is not less than #e percent of the aggregate amount of disbursed and outstanding loans1 guarantees1 and insurance of the ,bank4 4 7b7 ,effective date ,the amendment made by subsection 7a7 shall take effect on the date that is one year after the date of the enactment of this ,act4 #ajc4 ,review of fraud controls ,section #ag7;b7 of the ,export-,import ,bank ,reauthorization ,act of #bjab 7#ab ,u4,s4,c4 #fce;a-#f7;b77 is amended to read as follows3 7b7 ,review of fraud controls ,not later than #d years after the date of the enactment of the ,export-,import ,bank ,reform and ,reauthorization ,act of #bjae1 and every #d years thereafter1 the ,comptroller ,general of the ,united ,states shall-- 7#a7 review the adequacy of the design and effectiveness of the controls used by the ,export-,import ,bank of the ,united ,states to prevent1 detect1 and investigate fraudulent applications for loans and guarantees and the compliance by the ,bank with the controls1 including by auditing a sample of ,bank transactions2 and 7#b7 submit a written report regarding the findings of the review and providing such recommendations with respect to the controls described in paragraph 7#a7 as the ,comptroller ,general deems appropriate to-- 7,a7 the ,committee on ,banking1 ,housing1 and ,urban ,affairs and the ,committee on ,appropriations of the ,senate2 and 7,b7 the ,committee on ,financial ,services and the ,committee on ,appropriations of the ,house of ,representatives4 4 #ajd4 ,office of ,ethics ,section #c of the ,export-,import ,bank ,act of #aide 7#ab ,u4,s4,c4 #fce;a7 is amended by adding at the end the following3 7k7 ,office of ,ethics 7#a7 ,establishment ,there is established an ,office of ,ethics within the ,bank1 which shall oversee all ethics issues within the ,bank4 7#b7 ,head of office 7,a7 ,in general ,the head of the ,office of ,ethics shall be the ,chief ,ethics ,officer1 who shall report to the ,board of ,directors4 7,b7 ,appointment ,not later than #ahj days after the date of the enactment of the ,export-,import ,bank ,reform and ,reauthorization ,act of #bjae1 the ,chief ,ethics ,officer shall be-- 7i7 appointed by the ,president of the ,bank from among persons-- 7,i7 with a background in law who have experience in the fields of law and ethics2 and 7,,ii7 who are not serving in a position requiring appointment by the ,president of the ,united ,states before being appointed to be ,chief ,ethics ,officer2 and 7ii7 approved by the ,board4 7,c7 ,designated agency ethics official ,the ,chief ,ethics ,officer shall serve as the designated agency ethics official for the ,bank pursuant to the ,ethics in ,government ,act of #aigh 7#e ,u4,s4,c4 ,app4 #aja et seq474 7#c7 ,duties ,the ,office of ,ethics has jurisdiction over all employees of1 and ethics matters relating to1 the ,bank4 ,with respect to employees of the ,bank1 the ,office of ,ethics shall-- 7,a7 recommend administrative actions to establish or enforce standards of official conduct2 7,b7 refer to the ,office of the ,inspector ,general of the ,bank alleged violations of-- 7i7 the standards of ethical conduct applicable to employees of the ,bank under parts #bfce and #fbja of title #e1 ,code of ,federal ,regulations2 7ii7 the standards of ethical conduct established by the ,chief ,ethics ,officer2 and 7iii7 any other laws1 rules1 or regulations governing the performance of official duties or the discharge of official responsibilities that are applicable to employees of the ,bank2 7,c7 report to appropriate ,federal or ,state authorities substantial evidence of a violation of any law applicable to the performance of official duties that may have been disclosed to the ,office of ,ethics2 and 7,d7 render advisory opinions regarding the propriety of any current or proposed conduct of an employee or contractor of the ,bank1 and issue general guidance on such matters as necessary4 4 #aje4 ,chief ,risk ,officer ,section #c of the ,export-,import ,bank ,act of #aide 7#ab ,u4,s4,c4 #fce;a71 as amended by section #ajd1 is further amended by adding at the end the following3 7l7 ,chief ,risk ,officer 7#a7 ,in general ,there shall be a ,chief ,risk ,officer of the ,bank1 who shall-- 7,a7 oversee all issues relating to risk within the ,bank2 and 7,b7 report to the ,president of the ,bank4 7#b7 ,appointment ,not later than #ahj days after the date of the enactment of the ,export-,import ,bank ,reform and ,reauthorization ,act of #bjae1 the ,chief ,risk ,officer shall be-- 7,a7 appointed by the ,president of the ,bank from among persons-- 7i7 with a demonstrated ability in the general management of1 and knowledge of and extensive practical experience in1 financial risk evaluation practices in large governmental or business entities2 and 7ii7 who are not serving in a position requiring appointment by the ,president of the ,united ,states before being appointed to be ,chief ,risk ,officer2 and 7,b7 approved by the ,board4 7#c7 ,duties ,the duties of the ,chief ,risk ,officer are-- 7,a7 to be responsible for all matters related to managing and mitigating all risk to which the ,bank is exposed1 including the programs and operations of the ,bank2 7,b7 to establish policies and processes for risk oversight1 the monitoring of management compliance with risk limits1 and the management of risk exposures and risk controls across the ,bank2 7,c7 to be responsible for the planning and execution of all ,bank risk management activities1 including policies1 reporting1 and systems to achieve strategic risk objectives2 7,d7 to develop an integrated risk management program that includes identifying1 prioritizing1 measuring1 monitoring1 and managing internal control and operating risks and other identified risks2 7,e7 to ensure that the process for risk assessment and underwriting for individual transactions considers how each such transaction considers the effect of the transaction on the concentration of exposure in the overall portfolio of the ,bank1 taking into account fees1 collateralization1 and historic default rates2 and 7,f7 to review the adequacy of the use by the ,bank of qualitative metrics to assess the risk of default under various scenarios4 4 #ajf4 ,risk ,management ,committee 7a7 ,in general ,section #c of the ,export-,import ,bank ,act of #aide 7#ab ,u4,s4,c4 #fce;a71 as amended by sections #ajd and #aje1 is further amended by adding at the end the following3 7m7 ,risk management committee 7#a7 ,establishment ,there is established a management committee to be known as the ,risk ,management ,committee4 7#b7 ,membership ,the membership of the ,risk ,management ,committee shall be the members of the ,board of ,directors1 with the ,president and ,first ,vice ,president of the ,bank serving as ex officio members4 7#c7 ,duties ,the duties of the ,risk ,management ,committee shall be-- 7,a7 to oversee1 in conjunction with the ,office of the ,chief ,financial ,officer of the ,bank-- 7i7 periodic stress testing on the entire ,bank portfolio1 reflecting different market1 industry1 and macroeconomic scenarios1 and consistent with common practices of commercial and multilateral development banks2 and 7ii7 the monitoring of industry1 geographic1 and obligor exposure levels2 and 7,b7 to review all required reports on the default rate of the ,bank before submission to ,congress under section #h7;g74 4 7b7 ,termination of ,audit ,committee ,not later than #ahj days after the date of the enactment of this ,act1 the ,board of ,directors of the ,export-,import ,bank of the ,united ,states shall revise the bylaws of the ,bank to terminate the ,audit ,committee established by section #g of the bylaws4 #ajg4 ,independent audit of bank portfolio 7a7 ,audit ,the ,inspector ,general of the ,export-,import ,bank of the ,united ,states shall conduct an audit or evaluation of the portfolio risk management procedures of the ,bank1 including a review of the implementation by the ,bank of the duties assigned to the ,chief ,risk ,officer under section #c7l7 of the ,export-,import ,bank ,act of #aide1 as amended by section #aje4 7b7 ,report ,not later than one year after the date of the enactment of this ,act1 and not less frequently than every #c years thereafter1 the ,inspector ,general shall submit to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives a written report containing all findings and determinations made in carrying out subsection 7a74 #ajh4 ,pilot program for reinsurance 7a7 ,in general ,notwithstanding any provision of the ,export-,import ,bank ,act of #aide 7#ab ,u4,s4,c4 #fce et seq471 the ,export-,import ,bank of the ,united ,states 7in this section referred to as the ,bank7 may establish a pilot program under which the ,bank may enter into contracts and other arrangements to share risks associated with the provision of guarantees1 insurance1 or credit1 or the participation in the extension of credit1 by the ,bank under that ,act4 7b7 ,limitations on ,amount of ,risk-,sharing 7#a7 ,per contract or other arrangement ,the aggregate amount of liability the ,bank may transfer through risk-sharing pursuant to a contract or other arrangement entered into under subsection 7a7 may not exceed #a1jjj1jjj1jjj4 7#b7 ,per year ,the aggregate amount of liability the ,bank may transfer through risk-sharing during a fiscal year pursuant to contracts or other arrangements entered into under subsection 7a7 during that fiscal year may not exceed #aj1jjj1jjj1jjj4 7c7 ,annual reports ,not later than one year after the date of the enactment of this ,act1 and annually thereafter through #bjai1 the ,bank shall submit to ,congress a written report that contains a detailed analysis of the use of the pilot program carried out under subsection 7a7 during the year preceding the submission of the report4 7d7 ,rule of construction ,nothing in this section shall be construed to affect1 impede1 or revoke any authority of the ,bank4 7e7 ,termination ,the pilot program carried out under subsection 7a7 shall terminate on ,september #cj1 #bjai4 ,,ii ,promotion of small business exports #bja4 ,increase in small business lending requirements 7a7 ,in general ,section #b7;b77#a77;,e77v7 of the ,export-,import ,bank ,act of #aide 7#ab ,u4,s4,c4 #fce7;b77#a77;,e77v77 is amended by striking #bj percent and inserting #be percent4 7b7 ,effective date ,the amendment made by subsection 7a7 shall apply with respect to fiscal year #bjaf and each fiscal year thereafter4 #bjb4 ,report on programs for small and medium-sized businesses 7a7 ,in general ,section #h of the ,export-,import ,bank ,act of #aide 7#ab ,u4,s4,c4 #fce;g7 is amended by adding at the end the following3 7k7 ,report on ,programs for ,small and ,medium-,sized ,businesses ,the ,bank shall include in its annual report to ,congress under subsection 7a7 a report on the programs of the ,bank for ,united ,states businesses with less than #bej1jjj1jjj in annual sales4 4 7b7 ,effective date ,the amendment made by subsection 7a7 shall apply with respect to the report of the ,export-,import ,bank of the ,united ,states submitted to ,congress under section #h of the ,export-,import ,bank ,act of #aide 7#ab ,u4,s4,c4 #fce;g7 for the first year that begins after the date of the enactment of this ,act4 ,,iii ,modernization of operations #cja4 ,electronic payments and documents ,section #b7;b77#a7 of the ,export-,import ,bank ,act of #aide 7#ab ,u4,s4,c4 #fce7;b77#a77 is amended by adding at the end the following3 7,m7 ,not later than #b years after the date of the enactment of the ,export-,import ,bank ,reform and ,reauthorization ,act of #bjae1 the ,bank shall implement policies-- 7i7 to accept electronic documents with respect to transactions whenever possible1 including copies of bills of lading1 certifications1 and compliance documents1 in such manner so as not to undermine any potential civil or criminal enforcement related to the transactions2 and 7ii7 to accept electronic payments in all of its programs4 4 #cjb4 ,reauthorization of information technology updating ,section #c7;j7 of the ,export-,import ,act of #aide 7#ab ,u4,s4,c4 #fce;a7j77 is amended-- 7#a7 in paragraph 7#a71 in the matter preceding subparagraph 7,a71 by striking #bjab1 #bjac1 and #bjad and inserting #bjae through #bjai2 7#b7 in paragraph 7#b77;,b71 by striking 7,i7 the funds and inserting 7i7 the funds2 and 7#c7 in paragraph 7#c71 by striking #bjab1 #bjac1 and #bjad and inserting #bjae through #bjai4 ,,iv ,general provisions #dja4 ,extension of authority 7a7 ,in general ,section #g of the ,export-,import ,bank ,act of #aide 7#ab ,u4,s4,c4 #fce;f7 is amended by striking #bjad and inserting #bjai4 7b7 ,dual-,use ,exports ,section #a7;c7 of ,public ,law #ajc-dbh 7#ab ,u4,s4,c4 #fce note7 is amended by striking ,september #cj1 #bjad and inserting the date on which the authority of the ,export-,import ,bank of the ,united ,states expires under section #g of the ,export-,import ,bank ,act of #aide 7#ab ,u4,s4,c4 #fce;f74 7c7 ,sub-,saharan ,africa ,advisory ,committee ,section #b7;b77#i77;,b77iii7 of the ,export-,import ,bank ,act of #aide 7#ab ,u4,s4,c4 #fce7;b77#i77;,b77iii77 is amended by striking ,september #cj1 #bjad and inserting the date on which the authority of the ,bank expires under section #g4 7d7 ,effective date ,the amendments made by this section shall take effect on the earlier of the date of the enactment of this ,act or ,june #cj1 #bjae4 #djb4 ,certain updated loan terms and amounts 7a7 ,loan ,terms for ,medium-,term ,financing ,section #b7;a77#b77;,a7 of the ,export-,import ,bank ,act of #aide 7#ab ,u4,s4,c4 #fce7;a77#b77;,a77 is amended-- 7#a7 in clause 7i71 by striking 2 and and inserting a semicolon2 and 7#b7 by adding at the end the following3 7iii7 with principal amounts of not more than #be1jjj1jjj2 and 4 7b7 ,competitive opportunities relating to insurance ,section #b7;d77#b7 of the ,export-,import ,bank ,act of #aide 7#ab ,u4,s4,c4 #fce7;d77#b77 is amended by striking #aj1jjj1jjj and inserting #be1jjj1jjj4 7c7 ,export amounts for small business loans ,section #c7;g77#c7 of the ,export-,import ,bank ,act of #aide 7#ab ,u4,s4,c4 #fce;a7g77#c77 is amended by striking #aj1jjj1jjj and inserting #be1jjj1jjj4 7d7 ,consideration of environmental effects ,section #aa7;a77#a77;,a7 of the ,export-,import ,bank ,act of #aide 7#ab ,u4,s4,c4 #fce;i-#e7;a77#a77;,a77 is amended by striking #aj1jjj1jjj or more and inserting the following3 #be1jjj1jjj 7or1 if less than #be1jjj1jjj1 the threshold established pursuant to international agreements1 including the ,common ,approaches for ,officially ,supported ,export ,credits and ,environmental and ,social ,due ,diligence1 as adopted by the ,organisation for ,economic ,co-operation and ,development ,council on ,june #bh1 #bjab1 and the risk-management framework adopted by financial institutions for determining1 assessing1 and managing environmental and social risk in projects 7commonly referred to as the ,equator ,principles77 or more4 7e7 ,effective date ,the amendments made by this section shall apply with respect to fiscal year #bjaf and each fiscal year thereafter4 ,v ,other matters #eja4 ,prohibition on discrimination based on industry ,section #b of the ,export-,import ,bank ,act of #aide 7#f ,u4,s4,c4 #fce et seq47 is amended by adding at the end the following3 7k7 ,prohibition on discrimination based on industry 7#a7 ,in general ,except as provided in this ,act1 the ,bank may not-- 7,a7 deny an application for financing based solely on the industry1 sector1 or business that the application concerns2 or 7,b7 promulgate or implement policies that discriminate against an application based solely on the industry1 sector1 or business that the application concerns4 7#b7 ,applicability ,the prohibitions under paragraph 7#a7 apply only to applications for financing by the ,bank for projects concerning the exploration1 development1 production1 or export of energy sources and the generation or transmission of electrical power1 or combined heat and power1 regardless of the energy source involved4 4 #ejb4 ,negotiations to end export credit financing 7a7 ,in general ,section #aa of the ,export-,import ,bank ,reauthorization ,act of #bjab 7#ab ,u4,s4,c4 #fce;a-#e7 is amended-- 7#a7 in subsection 7a7-- 7,a7 in the matter preceding paragraph 7#a71 by striking ,secretary of the ,treasury 7in this section referred to as the ,secretary7 and inserting ,president2 and 7,b7 in paragraph 7#a7-- 7i7 by striking 7,,oecd7 and inserting 7in this section referred to as the ,,oecd72 and 7ii7 by striking ultimate goal of eliminating and inserting possible goal of eliminating1 before the date that is #aj years after the date of the enactment of the ,export-,import ,bank ,reform and ,reauthorization ,act of #bjae12 7#b7 in subsection 7b71 by striking ,secretary each place it appears and inserting ,president2 and 7#c7 by adding at the end the following3 7c7 ,report on strategy ,not later than #ahj days after the date of the enactment of the ,export-,import ,bank ,reform and ,reauthorization ,act of #bjae1 the ,president shall submit to ,congress a proposal1 and a strategy for achieving the proposal1 that the ,united ,states ,government will pursue with other major exporting countries1 including ,,oecd members and non-,,oecd members1 to eliminate over a period of not more than #aj years subsidized export-financing programs1 tied aid1 export credits1 and all other forms of government-supported export subsidies4 7d7 ,negotiations with non-,,oecd members ,the ,president shall initiate and pursue negotiations with countries that are not ,,oecd members to bring those countries into a multilateral agreement establishing rules and limitations on officially supported export credits4 7e7 ,annual reports on progress of negotiations ,not later than #ahj days after the date of the enactment of the ,export-,import ,bank ,reform and ,reauthorization ,act of #bjae1 and annually thereafter through calendar year #bjai1 the ,president shall submit to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives a report on the progress of any negotiations described in subsection 7d74 4 7b7 ,effective date ,the amendments made by paragraphs 7#a7 and 7#b7 of subsection 7a7 shall apply with respect to reports required to be submitted under section #aa7;b7 of the ,export-,import ,bank ,reauthorization ,act of #bjab 7#ab ,u4,s4,c4 #fce;a-#e7;b77 after the date of the enactment of this ,act4 #ejc4 ,study of financing for information and communications technology systems 7a7 ,analysis of information and communications technology industry use of bank products ,the ,export-,import ,bank of the ,united ,states 7in this section referred to as the ,bank7 shall conduct a study of the extent to which the products offered by the ,bank are available and used by companies that export information and communications technology services and related goods4 7b7 ,elements ,in conducting the study required by subsection 7a71 the ,bank shall examine the following3 7#a7 ,the number of jobs in the ,united ,states that are supported by the export of information and communications technology services and related goods1 and the degree to which access to financing will increase exports of such services and related goods4 7#b7 ,the reduction in the financing by the ,bank of exports of information and communications technology services from #bjjc through #bjad4 7#c7 ,the activities of foreign export credit agencies to facilitate the export of information and communications technology services and related goods4 7#d7 ,specific proposals for how the ,bank could provide additional financing for the exportation of information and communications technology services and related goods through risk-sharing with other export credit agencies and other third parties4 7#e7 ,proposals for new products the ,bank could offer to provide financing for exports of information and communications technology services and related goods1 including-- 7,a7 the extent to which the ,bank is authorized to offer new products2 7,b7 the extent to which the ,bank would need additional authority to offer new products to meet the needs of the information and communications technology industry2 7,c7 specific proposals for changes in law that would enable the ,bank to provide increased financing for exports of information and communications technology services and related goods in compliance with the credit and risk standards of the ,bank2 7,d7 specific proposals that would enable the ,bank to provide increased outreach to the information and communications technology industry about the products the ,bank offers2 and 7,e7 specific proposals for changes in law that would enable the ,bank to provide the financing to build information and communications technology infrastructure1 in compliance with the credit and risk standards of the ,bank1 to allow for market access opportunities for ,united ,states information and communications technology companies to provide services on the infrastructure being financed by the ,bank4 7c7 ,report ,not later than #aha days after the date of the enactment of this ,act1 the ,bank shall submit to ,congress a report that contains the results of the study required by subsection 7a74 ,october #bj1 #bjae,read the second time and placed on the calendar