,i #aaith ,,congress #ast ,session ,h4 ,r4 #ebii ,,in ,,the ,,house ,,of ,,representatives ,september #aa1 #bjbe,mr4 ,mast introduced the following bill2 which was referred to the ,committee on ,foreign ,affairs ,a ,,bill ,to modify and reauthorize the ,better ,utilization of ,investments ,leading to ,development ,act of #bjah1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,,dfc ,modernization ,act of #bjbe4 #b4 ,sense of ,congress2 statement of policy 7a7 ,in general ,it is the sense of ,congress that the ,united ,states ,international ,development ,finance ,corporation should seek to responsibly increase its risk tolerance in investments to ensure that the ,corporation is maximizing the mobilization of private capital and properly pursuing its statutory objectives of advancing ,united ,states foreign policy1 economic development1 and national security goals to make ,america safer1 stronger1 and more prosperous1 including-- 7#a7 by more frequent use of one or more of a variety of tools to mitigate risk to the private sector1 including the use of equity1 hybrid securities1 mezzanine debt1 accepting creditor status that is subordinate to that of other creditors1 using partial guarantees1 employing first loss coverage1 insurance1 and using blended finance2 7#b7 by lending1 investing1 or offering insurance in high-risk countries1 regions1 or sectors as a means to achieve its mission as a ,united ,states foreign policy and development agency of economic statecraft to mobilize capital1 secure strategic needs1 and build private markets2 7#c7 by preventing strategic competitor inroads and dominance of key sectors such as infrastructure1 critical and rare earth minerals1 and critical supply chains and industries1 which is in the economic and national security interests of the ,united ,states2 and 7#d7 by assisting allied and partner countries in achieving energy security through diversification of their energy sources and supply routes which is in the economic and national security interests of the ,united ,states4 7b7 ,statement of policy ,it is the policy of the ,united ,states-- 7#a7 to advance ,united ,states foreign policy1 national security1 and economic development goals by facilitating market-based private sector development in countries to make ,america safer1 stronger1 and more prosperous2 7#b7 to counter or limit strategic competitor inroads and dominance of key sectors such as infrastructure1 critical and rare earth minerals1 and critical supply chains and industries through support of diversified private sector options and by providing a robust alternative to and reducing reliance on state-directed1 unsustainable financing by strategic competitors of the ,united ,states2 7#c7 to advance ,united ,states foreign policy1 national security1 and economic development goals by assisting countries to reduce their dependence on resources from countries that use dependence for undue malign influence and that have used natural gas1 nuclear energy1 oil1 rare earths1 critical and strategic materials1 and other resources to coerce1 intimidate1 and influence other countries2 7#d7 to promote the energy security of allied and partner countries by encouraging the development of accessible1 transparent1 and competitive energy markets that provide diversified sources1 energy types1 and diversified energy transport and distribution methods and routes1 which are in the economic and national security interests of the ,united ,states2 7#e7 to encourage ,united ,states public and private sector investment in energy1 telecommunications1 and other infrastructure projects in allied and partner countries to bridge the gap between security requirements and commercial demand consistent with the country's absorptive capacity2 7#f7 to facilitate the export of ,united ,states energy1 telecommunications1 technology1 expertise1 and other resources to global markets in a way that benefits the economic and national security interests of the ,united ,states2 7#g7 to support private sector development in countries that promote economic prosperity in a manner that can help to curb illegal migration and secure the borders of the ,united ,states2 7#h7 to facilitate procurement of necessary resources and supply chains for the benefit of the ,united ,states and its citizens2 and 7#i7 to facilitate market-based private sector development and economic growth through the provision of credit1 capital1 and other financial support by taking on substantial financial risk1 and when necessary financial losses1 to unlock new1 significant private capital investments or achieve or advance major ,united ,states foreign policy objectives4 ,losses may be expected1 in certain instances1 at the individual investment level and financial performance may be measured at the overall portfolio level4 ,i ,,definitions ,,and ,,less ,,developed ,,country ,,focus #aja4 ,definitions ,section #adjb of the ,better ,utilization of ,investments ,leading to ,development ,act of #bjah 7#bb ,u4,s4,c4 #ifja7 is amended-- 7#a7 by redesignating paragraphs 7#b71 7#c71 and 7#d7 as paragraphs 7#c71 7#d71 and 7#e71 respectively2 7#b7 by inserting after paragraph 7#a7 the following3 7#b7 ,high-income country ,the term high-income country means a country with a high-income economy1 as defined by ,international ,bank for ,reconstruction and ,development and the ,international ,development ,association 7collectively referred to as the ,world ,bank74 2 7#c7 in paragraph 7#e71 as so redesignated-- 7,a7 in subparagraph 7,a71 by striking or at the end2 7,b7 in subparagraph 7,b71 by striking the period at the end and inserting 2 or2 and 7,c7 by adding at the end1 the following3 7,c7 any other similar institution that has a purpose that is similar to the purposes of the ,corporation as described in section #adab7;b7 of this title4 2 and 7#d7 by adding at the end the following3 7#f7 ,country of concern ,the term country of concern means any of the following countries3 7,a7 ,the ,bolivarian ,republic of ,venezuela4 7,b7 ,the ,republic of ,cuba4 7,c7 ,the ,democratic ,people's ,republican of ,korea4 7,d7 ,the ,islamic ,republic of ,iran4 7,e7 ,the ,people's ,republic of ,china4 7,f7 ,the ,russian ,federation4 7,g7 ,belarus4 4 #ajb4 ,less developed country focus ,section #adab of the ,better ,utilization of ,investments ,leading to ,development ,act of #bjah 7#bb ,u4,s4,c4 #ifab7 is amended-- 7#a7 by inserting and high income countries and areas1 as appropriate1 after less developed countries2 and 7#b7 by adding at the end the following3 7#c7 ,support in high-income countries and areas ,the ,corporation shall restrict the provision of support under title ,,ii in high-income countries and areas unless the ,president certifies to the appropriate congressional committees that such support furthers the national economic or foreign policy interests of the ,united ,states4 4 ,,ii ,,management ,,of ,,corporation #bja4 ,board of ,directors ,section #adac7;b7 of the ,better ,utilization of ,investments ,leading to ,development ,act of #bjah 7#bb ,u4,s4,c4 #ifac7;b77 is amended-- 7#a7 in subparagraph 7#b77;,a77iii71 by striking #e individuals each place it appears and inserting #c individuals2 7#b7 in subparagraph 7#b77;,b77i71 by striking subclause ,,iii and inserting the following3 7,,iii7 ,one other principal officer from an executive ,department designated by the ,president4 2 and 7#c7 by striking subparagraph 7#d7 and inserting the following3 7#d7 ,vice chairperson ,the ,president shall appoint a member of the ,board to serve as the ,vice ,chairperson of the ,board4 4 #bjb4 ,chief ,risk ,officer ,section #adac7;f7 of the ,better ,utilization of ,investments ,leading to ,development ,act of #bjah 7#bb ,u4,s4,c4 #ifac7;f77 is amended-- 7#a7 in the matter preceding subparagraph 7,a71 by striking 1 who-- and inserting a period2 7#b7 in paragraph 7#a71 by striking subparagraphs 7,a7 and 7,b72 and 7#c7 in paragraph 7#b71 by striking audit and inserting risk4 #bjc4 ,chief ,development ,officer 7a7 ,in general ,section #adac of the ,better ,utilization of ,investments ,leading to ,development ,act of #bjah 7#bb ,u4,s4,c4 #ifac7 is amended-- 7#a7 in subsection 7a71 by striking a ,chief ,development ,officer12 7#b7 by striking subsection 7g7 and redesignating subsections 7h7 and 7i7 as subsections 7g7 and 7h71 respectively2 7#c7 in subsection 7g7 as so redesignated1 by striking paragraph 7#a7 and inserting the following3 7#a7 ,in general ,except as otherwise provided in this section1 officers1 employees1 and agents shall be selected and appointed by or under the authority of the ,chief ,executive ,officer1 and shall be vested with such powers and duties as the ,chief ,executive ,officer or the designee of the ,chief ,executive ,officer may determine4 2 and 7#d7 in subsection 7h71 as so redesignated1 by striking and the ,chief ,development ,officer14 7b7 ,chief ,executive ,officer ,section #adde of the ,better ,utilization of ,investments ,leading to ,development ,act of #bjah 7#bb ,u4,s4,c4 #ifee7 is amended-- 7#a7 by striking subsection 7a7 and inserting the following3 7a7 ,in general ,the ,chief ,executive ,officer shall-- 7#a7 develop a strategic relationship with private sector entities focused at the nexus of business opportunities and development priorities2 7#b7 engage such entities and reduce business risks primarily through direct transaction support and facilitating investment partnerships2 7#c7 develop and support tools1 approaches1 and intermediaries that can mobilize private finance at scale in the developing world2 and 7#d7 pursue highly developmental projects of all sizes1 especially those that are small but designed for work in the most underdeveloped areas1 including countries with chronic suffering as a result of extreme poverty1 fragile institutions1 or a history of violence4 2 and 7#b7 in subsection 7c71 by striking the ,united ,states ,agency for ,international ,development and4 #bjd4 ,administratively determined positions ,section #adac7;g77#b7 of the ,better ,utilization of ,investments ,leading to ,development ,act of #bjah 7#bb ,u4,s4,c4 #ifac7;g77#b771 as so redesignated1 is amended in subparagraph 7,a7 by striking #ej and inserting #ajj4 ,,iii ,,authorities ,,relating ,,to ,,provision ,,of ,,support #cja4 ,equity limitation ,section #adba7;c77#d77;,a7 of the ,better ,utilization of ,investments ,leading to ,development ,act of #bjah 7#bb ,u4,s4,c4 #ifba7;c77#d77;,a77 is amended by striking #cj and inserting #di4 #cjb4 ,revolving equity investment account 7a7 ,equity ,investments ,account ,section #adba7;c7 of the ,better ,utilization of ,investments ,leading to ,development ,act of #bjah 7#bb ,u4,s4,c4 #ifba7;c77 is amended by adding at the end the following3 7#g7 ,equity ,investments ,account 7,a7 ,establishment ,there is established in the ,treasury of the ,united ,states an ,equity ,investments ,account of the ,united ,states ,international ,development ,finance ,corporation 7referred to in this subsection as the ,equity ,investments ,account74 7,b7 ,retention of collections ,collections derived from the earnings1 fees1 credits1 and other collections from the equity investments made using amounts in the ,equity ,investments ,account shall be deposited into the ,equity ,investments ,account1 and shall be available to the ,corporation without further appropriation or fiscal year limitation for carrying out the purposes of this section4 4 7b7 ,collections ,section #adcd7;h7 of the ,better ,utilization of ,investments ,leading to ,development ,act of #bjah 7#bb ,u4,s4,c4 #ifcd7;h77 is amended by adding except earnings1 fees1 credits1 and other collections related to equity investments from the ,equity ,investments ,account1 after earnings collected related to equity investments14 #cjc4 ,enterprise funds ,section #adba7;g7 of the ,better ,utilization of ,investments ,leading to ,development ,act of #bjah 7#bb ,u4,s4,c4 #ifba7;g77 is amended-- 7#a7 in paragraph 7#a71 by striking the ,administrator of the ,united ,states ,agency for ,international ,development12 and 7#b7 in paragraph 7#c77;,e71 by striking ,agency for ,international ,development4 #cjd4 ,termination ,section #adbd7;a7 of the ,better ,utilization of investments ,leading to ,development ,act of #bjah 7#bb ,u4,s4,c4 #ifbd7;a77 is amended by striking the date that is #g years after the date of the enactment of this ,act and inserting ,december #ca1 #bjca4 ,,iv ,,other ,,matters #dja4 ,corporate powers ,section #adcb7;a7 of the ,better ,utilization of ,investments ,leading to ,development ,act of #bjah 7#bb ,u4,s4,c4 #ifcb7;a77 is amended-- 7#a7 in paragraph 7#b71 by striking division ,c of subtitle ,i of2 and 7#b7 in paragraph 7#aj71 by striking until the expiration of the current lease under predecessor authority1 as of the day before the date of the enactment of this ,act4 #djb4 ,maximum contingent liability ,section #adcc of the ,better ,utilization of ,investments ,leading to ,development ,act of #bjah 7#bb ,u4,s4,c4 #ifcc7 is amended by striking #fj1jjj1jjj1jjj and inserting #bej1jjj1jjj1jjj4 #djc4 ,authority to use portion of corporation fees to update information technology systems2 transfer of funds ,section #adcd of the ,better ,utilization of ,investments ,leading to ,development ,act of #bjah 7#bb ,u4,s4,c4 #ifcd7 is amended-- 7#a7 in subsection 7d7-- 7,a7 in paragraph 7#a7-- 7i7 in subparagraph 7,b71 by adding and at the end2 7ii7 in subparagraph 7,c71 by striking the semicolon at the end and inserting a period2 and 7iii7 by striking subparagraph 7,d72 and 7,b7 in paragraph 7#b7-- 7i7 in subparagraph 7,b71 by striking and at the end2 7ii7 in subparagraph 7,c71 by striking the period at the end and inserting a semicolon2 and 7iii7 by adding at the end the following3 7,d7 project-specific transaction costs2 and 7,e7 transfers and additions to such other accounts1 funds1 or reserves as the ,corporation may establish1 at such time and in such amounts as the ,board may determine4 2 7#b7 in subsection 7j71 by inserting 7i7 title #aj1 ,united ,states ,code1 7ii7 the ,strategic and ,critical ,materials ,stock ,piling ,act 7#ej ,u4,s4,c4 #ih et seq471 or 7iii7 after funds authorized to be appropriated to carry out2 and 7#c7 in subsection 7k7-- 7,a7 in paragraph 7#a71 by inserting other direct costs associated with origination or monitoring services1 including seminars1 conferences1 and other pre-investment services1 after legal expenses12 and 7,b7 in paragraph 7#b71 by striking does not include and inserting includes4 #djd4 ,notifications to be provided by the corporation ,section #addf7;a7 of the ,better ,utilization of ,investments ,leading to ,development ,act of #bjah 7#bb ,u4,s4,c4 #ifef7;a77 is amended by striking #aj1jjj1jjj and inserting #ajj1jjj1jjj4 #dje4 ,millennium challenge corporation 7a7 ,coordination with other development agencies ,section #adce of the ,better ,utilization of ,investments ,leading to ,development ,act of #bjah 7#bb ,u4,s4,c4 #ifce7 is amended by striking the ,united ,states ,agency for ,international ,development4 7b7 ,sources of information ,section #adea7;g77#b7 of the ,better ,utilization of ,investments ,leading to ,development ,act of #bjah 7#bb ,u4,s4,c4 #ifga7;g77#b77 is amended by striking the ,department of ,commerce's ,country ,commercial ,guides1 or the ,millennium ,challenge ,corporation's ,constraints ,analysis1 and inserting or the ,department of ,commerce's ,country ,commercial ,guides14 #djf4 ,state-owned enterprises ,section #adea of the ,better ,utilization of ,investments ,leading to ,development ,act of #bjah 7#bb ,u4,s4,c4 #ifga7 is amended by adding at the end the following3 7j7 ,policies with respect to state-,owned enterprises1 anticompetitive practices1 and countries of concern 7#a7 ,policy ,the ,corporation shall develop appropriate policies and guidelines for support provided under title ,,ii for a project involving a state-owned enterprise1 sovereign wealth fund1 or a parastatal entity to ensure such support is provided consistent with appropriate principles and practices of competitive neutrality4 7#b7 ,prohibitions 7,a7 ,anticompetitive practices ,the ,corporation may not provide support under title ,,ii for a project that involves a private sector entity engaged in anticompetitive practices4 7,b7 ,countries of concern ,the ,corporation may not provide support under title ,,ii for projects-- 7i7 that involve partnerships with the government of a country of concern or a state-owned enterprise that belongs to or is under the control of a foreign country of concern2 or 7ii7 that would be operated1 managed1 or controlled by the government of a country of concern or a state-owned enterprise that belongs to or is under the control of a foreign country of concern4 7#c7 ,definitions ,in this subsection3 7,a7 ,state-owned enterprise ,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 governments1 including any agency1 instrumentality1 subdivision1 or other unit of government at any level of jurisdiction4 7,b7 ,control ,the term control1 with respect to an enterprise1 means the power by any means to control the enterprise regardless of-- 7i7 the level of ownership2 and 7ii7 whether or not the power is exercised4 7,c7 ,owned ,the term owned1 with respect to an enterprise1 means a majority or controlling interest1 whether by value or voting interest1 of the shares of that enterprise1 including through fiduciaries1 agents1 or other means4 7#d7 ,qualifying sovereign entity ,state-owned enterprises1 sovereign wealth funds1 or parastatal entities that the ,corporation supports1 pursuant to the policy and prohibitions in section #djg 7#a7 and 7#b71 shall be considered as a qualifying sovereign entity as defined in section #adjb4 4 #djg4 ,repeal of redundant provisions of the ,european ,energy ,security and ,diversification ,act of #bjai ,the ,european ,energy ,security and ,diversification ,act of #bjai 7title ,,xx of division ,p of ,public ,law #aaf-id2 #bb ,u4,s4,c4 #ieja note7 is hereby repealed4